Company Code: 600350 Abbreviation of Company: Shangdong Hi-Speed
Annual Report of Shandong Hi-Speed Co. Ltd. of 2020
NotesI. The Board of Directors, Board of Supervisors, directors, supervisors and executives of the Companyguarantee the truthfulness, accuracy and completeness without any false or misleading statements ormaterial omissions herein, and shall bear joint and several legal liabilities.II. Absent directors
| Post of absent director | Name of absent director | Reason for absence | Name of delegate |
| Independent Director | Fan Yuejin | Because of work | Wei Jian |
Contents
Chapter I Definitions ...... 4
Section II Company Profile and Major Financial Indicators ...... 6
Section III Business Summary of the Company ...... 13
Chapter IV Operation Discussion and Analysis ...... 17
Chapter V Material Matters ...... 41
Chapter VI Changes in common shares and shareholders ...... 70
Chapter VII Preference shares ...... 76Chapter VIII Information about Directors, Supervisors, Senior Management andEmployees ...... 77
Chapter IX Company Governance ...... 90
Chapter X. Corporate Bond-Related Information .............................................................. 93
Chapter XI Financial Report ...... 94
Chapter XII List of Documents Available for Inspection ...... 264
Chapter I DefinitionsI. 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 High-speed Co., Ltd |
| 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 Road 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. |
| Jidong Development Corporation | refer to | Shandong Hi-Speed Jidong Development Co., Ltd (current name) Shandong Expressway Zhangqiu Real Estate Development Co., Ltd (former name) |
| Industrial Corporation | refer to | Shandong Hi-Speed Industrial Development Co., Ltd. |
| Jitai Mining | refer to | Shandong Hi-Speed Jitai Mining Investment Co., Ltd. |
| Environmental Protection Science and 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 Co., Ltd. |
| Dongxing Securities | refer to | Dongxing Securities Co., 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 Real Estate 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 |
| Beijing-Taipei Expressway Deqi Section Renovation and Expansion, Beijing-Taipei Expressway Deqi Section Renovation and Expansion Project, Beijing-Taipei Deqi Project | refer to | Reconstruction and Extension Project of Dezhou(border Between Shandong and Hebei)-Qihe Section of Beijing-Taibei Expressway |
| Beijing-Taipei Expressway Jitai Section Renovation and Expansion, Beijing-Taipei Expressway Jitai Section Renovation and Expansion Project, Beijing-Taipei Jitai Project | refer to | Beijing-Taipei Expressway Jinan-Taian Section Renovation and Expansion Project |
| Beijing-Taipei Expressway Qiji Section Renovation and Expansion, Beijing-Taipei Expressway Qiji Section Renovation and Expansion Project, Beijing-Taipei Qiji Project | refer to | Beijing-Taipei Expressway Qihe-Jinan Section Renovation and Expansion Project |
| 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 Group Co., Ltd |
| Luyu Company | refer to | Luzhou Southeast Expressway Development Co., Ltd. |
| Qilu Transportation Development Group, Qilu Jiaotong Development, Qilu Transportation | refer to | Qilu Transportation Development Group Co., Ltd |
| Guangdong Expressway A | refer to | Guangdong Provincial Expressway Development Co., Ltd. |
| Engineering consulting company | refer to | Shandong Hi-Speed Group Engineering Consulting Co., Ltd (former name), Shandong High Speed Engineering Project Management Co., Ltd; |
| Railway Construction Equipment Company | refer to | Shandong High Speed Railway Construction Equipment Co., Ltd. |
Section II Company Profile and Major Financial IndicatorsI. Company Information
| Chinese Name of the Company | Shandong High-speed Co., Ltd |
| Abbreviation of Chinese Name | SDHS |
| 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, China |
| 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 Annual Reports | http://www.sse.com.cn |
| Place for Inspection of Annual Reports | No. 5006, Aoti Middle Road, Jinan City, Shandong Province, Shanghai Stock Exchange |
| Profiles of the Company's Shares | ||||
| Type of Shares | Place of Listing of the Company's Shares | Stock Abbreviation | Stock Code | Stock Abbreviation Before Change |
| A Share | Shanghai Stock Exchange | SDHS | 600350 | Shandong Infrastructure |
| Public Accountants Firm Hired by the Company (Domestic) | Name | Shinewing Certified Public Accountants (Special Partnership) |
| Address | 8/F, Block A, Fuhua Mansion, No.8 Chaoyangmen Beidajie, Dongcheng District, Beijing, China | |
| Names of Signatory Accountants | Wang Gongyong, Ma Yongteng |
VII. Major Accounting Data and Financial Indicators in the Past Three Years(I)Major Accounting Data
Unit: yuan Currency: CNY
| Major Accounting Data | 2020 | 2019 | Year-on-year increase or decrease (%) | 2018 | ||
| After adjustment | Before adjustment | After adjustment | Before adjustment | |||
| Operation revenue | 11,365,164,781.15 | 10,414,550,126.20 | 7,444,768,363.45 | 9.13 | 10,936,831,091.00 | 6,828,798,848.13 |
| Net profit attributable to shareholders of listed company | 2,038,999,018.13 | 3,126,071,417.08 | 3,043,591,513.37 | -34.77 | 3,012,199,696.22 | 2,943,890,710.90 |
| Net profit attributable to shareholders of listed company after deducting non-recurring profit or loss | 1,860,050,653.69 | 2,545,174,621.61 | 2,545,174,621.61 | -26.92 | 1,931,718,179.55 | 1,931,718,179.55 |
| Net cash flow from operating activities | 4,309,087,074,78 | 6,463,592,100.07 | 5,501,050,549.13 | -33.33 | 4,230,418,467.09 | 3,890,560,274.02 |
| End of 2020 | End of 2019 | Increase or Decrease as at the end of 2019 from the end of 2018 (%) | End of 2018 | |||
| After adjustment | Before adjustment | After adjustment | Before adjustment | |||
| Net assets attributable to shareholders of listed company | 31,450,761,771.47 | 33,275,842,501.20 | 32,121,191,628.12 | -5.48 | 28,331,011,323.05 | 27,261,133,946.54 |
| Total Assets | 92,917,303,523.92 | 88,022,860,778.69 | 80,359,625,413.30 | 5.56 | 75,946,049,747.57 | 68,596,136,422.09 |
(II) Major Financial Indicators
| Major Financial Indicators | 2020 | 2019 | Year-on-year increase or decrease (%) | 2018 | ||
| After adjustment | Before adjustment | After adjustment | Before adjustment | |||
| Basic earnings per share (yuan/share) | 0.402 | 0.646 | 0.631 | -37.77 | 0.626 | 0.612 |
| Diluted earnings per share (yuan/share) | 0.401 | 0.646 | 0.631 | -37.93 | 0.626 | 0.612 |
| Net Profit of Basic Earnings per Share after Non-recurring Items (RMB/Share) | 0.365 | 0.527 | 0.527 | -30.74 | 0.402 | 0.402 |
| Weighted average return on net assets (%) | 6.30 | 10.08 | 10.73 | Decrease by 3.78 percentage points | 10.25 | 10.38 |
| Weighted Average Return on Net Assets after Non-recurring Items (%) | 5.82 | 8.97 | 8.97 | -3.15 | 7.08 | 7.08 |
| First quarter (January - March) | Second quarter (April-June) | Third quarter (July-September) | Fourth quarter (October-December) | |
| Operation revenue | 1,625,991,650.47 | 2,423,648,252.04 | 3,535,026,547.59 | 3,780,498,331.05 |
| Net profit attributable to shareholders of listed company | -284,291,651.41 | 541,252,167.20 | 1,078,962,475.33 | 703,076,027.01 |
| Net profit attributable to shareholders of listed companies after non-recurring items | -336,655,518.33 | 476,047,352.60 | 1,070,149,241.61 | 650,509,577.81 |
| Net cash flow from operating activities | 99,945,925.10 | 1,550,382,369.88 | 1,668,238,174.56 | 990,520,605.24 |
| Non-recurring Items and Amounts | Amount in 2020 | Annotation (If applicable) | Amount in 2019 | Amount in 2018 |
| Profit or loss on disposal of non-current assets | -18,996,597.72 | Mainly arising from disposal of fixed assets | 484,378,503.37 | 1,701,267,641.00 |
| 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 | 78,000,402.78 | Mainly for construction compensation and various incentive grants | 29,188,375.13 | 24,980,680.30 |
| Fund occupation fee charged to non-financial enterprises included in current profit and loss. | 24,963,665.49 | |||
| 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 | 161,725,301.39 | 403,725,014.48 |
| Profit or loss of contingencies not related to normal operations | -597,800.00 | |||
| 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 | 6,615,000.00 | 48,259,154.25 | ||
| Reversal of provisions for impairment for receivables subject to separate impairment test and contract assets | 109,439,615.28 | |||
| 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 | 62,349,030.87 | Mainly as a result of road compensation income and interest compensation received from Shanghai Zeta | 23,993,867.28 | 23,665,088.86 |
| Other profit or loss items in line with definition of non-recurring profit or loss | ||||
| Affected amount of minority shareholders' equity | -100,812,333.81 | -76,894,163.24 | -1,000,908,292.32 | |
| Affected amount of income tax | -23,424,898.05 | - | -119,909,969.90 |
| 182,513,369.23 | ||||
| Total | 178,948,364.44 | 580,896,795.47 | 1,080,481,516.67 |
| Project Name | Beginning balance | Ending balance | Current Change | Influence Sum to Current Profit |
| Evergrande Real Estate Group Co., Ltd. | 500,000.00 | 0 | ||
| Yike Tower Investment Project | 56,389.32 | 56,389.32 | ||
| Specific assets support plan for South Cement Company Limited | 3,570.93 | 3,570.93 | ||
| Specific assets support plan for Chengtay Lease | 6,833.19 | 0 | ||
| Project of Qingdao Wudaokou New Energy Vehicle Industry Fund | 100,000.00 | 0 | ||
| Shandong Hi-speed Culture Media Co., Ltd. | 1,761.47 | 1,761.47 | ||
| Shandong Hi-Speed Greentown Laiwu Xueye Lake Development Co., Ltd. | 518.29 | 0 | -518.29 | |
| Shandong Weilai High Speed Railway Co., Ltd. | 3,162.68 | 3,162.68 | ||
| Shandong Railway Investment Holding Group Co., Ltd. | 30,000.00 | 30,000.00 | ||
| BOCOM Schroders-Champion Rental Asset-Backed Special Plan | 3,787.92 | |||
| Receivables financing | 10,854.74 | 15,000.00 | ||
| Total | 713,090.62 | 113,672.32 | -518.29 |
| Name of Road Section | 2016 | 2017 | 2018 | 2019 | 2020 | |||||
| Toll | Traffic Volume | Toll | Traffic Volume | Toll | Traffic Volume | Toll | Traffic Volume | Toll | Traffic Volume | |
| Jinan-Qingdao Expressway | 27.07 | 3,670 | 24.01 | 3,664 | 12.3 | 2,568 | 19.89 | 3,162 | 29.68 | 4,613 |
| Relevant sections of Beijing-Taibei Expressway | 19.26 | 4,657 | 19.08 | 5,012 | 19.3 | 4,692 | 17.67 | 4,709 | 8.53 | 3,052 |
| Jinan-Laiwu High-speed Railway | 2.91 | 648 | 4.28 | 782 | 5.23 | 977 | 4.55 | 1,193 | 3.8 | 1,400 |
| Tai'an-Qufu Road | 0.17 | 285 | 0.25 | 340 | 0.26 | 362 | 0.3 | 317 | 0.25 | 585 |
| Xuchang-Yuzhou Expressway | 1.22 | 262 | 1.73 | 337 | 2.08 | 399 | 1.98 | 398 | 1.37 | 366 |
| Weihai-Rushan Expressway | 1.21 | 503 | 1.3 | 564 | 1.36 | 594 | 1.4 | 601 | 1.1 | 671 |
| Jinan Yellow River Bridge | 0.17 | 135 | 0.13 | 88 | - | - | - | - | - | - |
| Jinan Yellow River Second Bridge | 4.36 | - | 4.78 | - | 5.03 | - | 5.09 | - | 2.83 | - |
| Binzhou Yellow River Bridge | 0.09 | 81 | 0.06 | 56 | - | - | - | - | - | - |
| Pingyin Yellow River Bridge | 1 | 433 | 0.78 | 362 | - | - | - | - | - | - |
| Weifang-Laiyang Expressway | 2.83 | 553 | 2.98 | 628 | 2.66 | 631 | 2.96 | 698 | 2.7 | 644 |
| Hengyang-Shaoyang Expressway | 2.02 | 253 | 2.04 | 246 | 2.18 | 320 | 2.23 | 283 | 1.81 | 253 |
| Lijin Yellow River Bridge | 1 | 690 | 1.16 | 729 | 1.24 | 772 | 0.65 | 479 | 0.43 | 471 |
| Henan Jiyuan-Jincheng Expressway | - | - | - | - | 1.13 | 108 | 2.69 | 278 | 1.3 | 92 |
| Hubei Wuhan-Jingmen Expressway | - | - | - | - | 8.79 | 808 | 9.71 | 948 | 7.12 | 752 |
| Total | 63.31 | 12,170 | 62.58 | 12,808 | 61.56 | 12,231 | 69.12 | 13,066 | 60.92 | 12,899 |
Section III Business Summary of the CompanyI. Explanations of Principal Business, Operation Mode and Industry Situation during the ReportPeriodThe Company was founded in 1999 with the registered capital of 4.811 billion Yuan and went public onMarch, 2002 in Shanghai Stock Exchange. The Company is mainly engaged in investment operation oftransportation infrastructures, and equity investment in industries relating to the expressway industry andvalue chains, finance, environmental protection and other fields.At present, the operation income and profit of the Company are mainly from two business modules of tollroad and 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 the Company. TheCompany obtains operational expressway assets through investment construction and acquisition, andoperation income by serving the passing vehicles and charging tolls in line with the government chargestandards. At the same time, by virtue of its relevant management experience, the Company accepts thecommission to manage expressway assets owned by other enterprises and provides them with superior-quality operation management service. At of now, the total mileage of road and bridge assets under theoperation management of the Company is 2,575 kilometers, including 1,314 kilometers owned by theCompany and 1,261 kilometers possessed by Shandong Hi-Speed Group and under its commissionedmanagement, making the Company the public road and bridge company with the longest mileage in theindustry nationwide.
2. Module of Investment Operation
China's expressway toll collection period is generally not longer than 30 years, and the stable cash incomewithin the period will become unsustainable as such a period expires; to realize its long-term sustainabledevelopment, the Company actively seeks for investment opportunities matching with the main business ofexpressway.With respect to equity investment, the Company actively expanded its scale in the expressway assets byhorizontal M&A of principal expressway projects to lay its industry status, and also energizes the downstreamindustries and zealously cultivates emerging industries by giving full play to its resource and backgroundadvantages and making vertical investment into industry chains to achieve its goal of long-term andsustainable development.In connection with value investment, the Company actively seeks for financial investment project "with littleinvestment but quick result" through exerting its advantage of cash flow in the expressway industry, so as torealize its investment goal of "supplementing long-term investment projects with short-term ones" to makeup the deficiency of long investment payoff period of the expressway industry by obtaining short-termfinancial investment income.
As of March 31, 2021, the Company's investment enterprises (including enterprise abbreviation) andbusiness structure are as follows:
| Primary service | Investment enterprise | |
| Legend: | Transportation | Real estate development | Investment and operation | Others | ||||
| Primary service | Equity relationship: |
Jinan-QingdaoExpresswayRelevant sections ofBeijing-TaibeiExpressway
Relevant sections ofBeijing-TaibeiExpresswayJinan-Laiwu High-speedRailway
Jinan-Laiwu High-speedRailwayWeifang-LaiyangExpressway
Weifang-LaiyangExpresswayWeihai-RushanExpressway
Weihai-RushanExpresswayJinan Yellow RiverSecond Bridge
Jinan Yellow RiverSecond BridgeLijin Yellow River Bridge
Lijin Yellow River BridgeTaiqu section of nationalhighway 104
Taiqu section of nationalhighway 104Hengyang-ShaoyangExpressway
Hengyang-ShaoyangExpresswayXuchang-YuzhouExpressway
Xuchang-YuzhouExpresswayJiyuan-JinchengExpressway
Jiyuan-JinchengExpresswayWuhan-JingmenExpressway
Wuhan-JingmenExpresswayLuzhou-ChongqingExpressway
Luzhou-ChongqingExpresswayGuangdong ExpresswayA
Guangdong ExpresswayARailway transport
Railway transportReal estate development
Real estate development
Real estate
development
Real estate
development
Real estate
development
Real estate
developmentFinancial industry
Financial industryFinancial industry
Financial industryFinancial industry
Financial industry
Investment and
development
Investment and
development
Investment and
development
Investment and
developmentGreen &
environmental
protection
Green &
environmental
protectionGreen &
environmental
protection
Green &
environmental
protection
Engineering
consultation
Engineering
consultationLogistics industry
Logistics industryProperty service
Property serviceAgency service
Agency service
Shandong Hi-Speed
Henan Development
Co., Ltd.
Shandong Hi-Speed
Henan Development
Co., Ltd.
Hunan Hengshao Expressway Co., Ltd.
Hunan Hengshao Expressway Co., 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.,
Ltd.Luzhou Southeast Expressway Development
Co., Ltd.
Luzhou Southeast Expressway Development
Co., Ltd.Guangdong Expressway Development Co., Ltd
Guangdong Expressway Development Co., LtdShandong Hi-speed Rail Transit Group Co.,
Ltd.
Shandong Hi-speed Rail Transit Group Co.,
Ltd.Jinan Puyuan Real Estate Co., Ltd.
Jinan Puyuan Real Estate Co., Ltd.Yantai Hesheng Real Estate Development Co.,
Ltd.
Yantai Hesheng Real Estate Development 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 City Commercial Bank Co., Ltd.
Weihai City Commercial Bank Co., Ltd.Dongxing Securities Co., Ltd.
Dongxing 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 SanitationEquipment Co., Ltd.
Fujian Longma Environmental SanitationEquipment Co., Ltd.Shandong Environmental Protection Industry
Co., Ltd
Shandong Environmental Protection Industry
Co., LtdShandong High-speed Engineering ProjectManagement Co. Ltd.
Shandong High-speed Engineering ProjectManagement Co. Ltd.Shandong High-speed Logistics Group Co.,
Ltd.
Shandong High-speed Logistics Group Co.,
Ltd.Shandong Hi-Speed Industrial Development
Co., Ltd.
Shandong Hi-Speed Industrial Development
Co., Ltd.Shandong Hi-Speed Qilu ConstructionTransport Administration Service Co., Ltd.
Shandong Hi-Speed Qilu ConstructionTransport Administration Service Co., Ltd.Shandong Hi-Speed Jidong
Development Co., Ltd.
Shandong Hi-Speed Jidong
Development Co., Ltd.
Shandong Hi-SpeedInvestment Development Co.,Ltd.
Shandong Hi-SpeedInvestment Development Co.,Ltd.Shandong Hi-Speed Jinan
Investment Co., Ltd.
Shandong Hi-Speed Jinan
Investment Co., Ltd.Organization Chart ofShandong Hi-Speed
Co., Ltd.
Organization Chart ofShandong Hi-Speed
Co., Ltd.
Shandong Lijin Huanghe Highway and Bridge Co.,
Ltd.
Information of Toll Roads (As of March 31, 2021)
| 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 | Reconstruction and expansion | |
| 8 | Jinan-Laiwu High-speed Railway | 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-Guangzhou Expressway | 54% | 2038.9.9 | 20.56 | 4 | In operation |
| 15 | Hengyang-Shaoyang | Heyang-Shaoyang Expressway in | 60% | 2040.12.29 | 132.059 | 4 | In operation |
| Expressway | Hunan | ||||||
| 16 | Wuhan-Jingmen Expressway | Wuhan-Jingmen Expressway in Hubei | 60% | 2040.5 | 183.21 | 4 | In operation |
| 17 | Luzhou-Chongqing Expressway | Sichuan Chengdu-Chongqing Ring Road Hegiang (Chongqi-Sichuan border) to Naxi section expressway | 80% | 6/27/2043 | 73.15 | 4 | In operation |
| Total | 1314.227 | ||||||
Chapter IV Operation Discussion and AnalysisI. Operation Discussion and Analysisthe Company's income and profit mainly come from road and bridge operation and investment operation, andthe contribution of upstream and downstream investment in the Company's expressway industry chain to theCompany's profit is gradually emerging. In 2020, the Company achieved annual operating income of RMB
11.365 billion, including toll revenue of RMB 5.956 billion, railway transportation and logistics income ofRMB 2.495 billion, commodity sales income of RMB 1.792 billion, net profit attributable to the parentcompany of RMB 2.039 billion and return on investment of RMB 1.472 billion.(I) Road and bridge operation
1. Industry Development Analysis
(1) China's highway industry has a wide range of downstream demand and strong ability to resist economiccycle fluctuations. The highway industry, as a whole, is showing a steady development trend. As an importantpart of China's transportation infrastructure, highway plays an irreplaceable role in meeting the short-distancetransportation need of materials and passengers, although the massive operation of high-speed rail hasbrought a certain impact on road passenger transport, in terms of passenger and freight transport volume,highways still occupy a dominant position in China's comprehensive transportation system, and the rapiddevelopment of modern logistics and express delivery industry will also support the subsequent highwayfreight volume. According to the Statistical Bulletin of National Economic and Social Development in 2020issued by the National Bureau of Statistics, road transport bears 71.25% of passenger traffic and 73.93% ofcargo traffic in China. China had retained 280.87 million civilian automobiles (including 7.48 million three-wheeled vehicles and low-speed trucks) by the end of 2020, increased by 19.37 million year on year, andretained 243.93 million private cars, increased by 17.58 million. The number of civilian cars was 156.4million, increased by 9.96 million, and the number of private cars was 146.74 million, increased by 9.73million. With the development of national economy, the number of urban tourists is growing and with therising of travel rate, and the trend of traffic volume growth will continue.
(2) The reconstruction and expansion of core highway property will usher in secondary developmentopportunities for expressway enterprises. According to the Statistical Bulletin of National Toll Road in 2019,the mileage of existing expressways in China had totaled 142,800 kilometers by the end of 2019, of whichthe core was those under the National Expressway Network plan, namely, "7918" network, including 7Beijing-based radial lines, 9 vertical routes and 18 horizontal routes, with a total scale of about 85,000kilometers, including 68,000 kilometers of main lines and about 17,000 kilometers of other routes such asregional loop lines and tie lines.
Unit: Kilometers
| Beijing-based radial line | North-south longitudinal line | East-west horizontal line | ||||||||
| S/N | origin-destination | Mileage | S/N | origin-destination | Mileage | S/N | origin-destination | Mileage | ||
| 1 | Beijing-Shanghai | 1245 | 1 | Hegang-Dalian | 1390 | 1 | Suifenhe-Manzhouli | 1520 | ||
| 2 | BeiBeijing-Taibeipei | 2030 | 2 | Shenyang-Haikou | 3710 | 2 | Hunchun-Ulanhot | 885 | ||
| 3 | Beijing-Hong Kong and Macao | 2285 | 3 | Changchun-Shenzhen | 3580 | 3 | Dandong-Xilinhot | 960 | ||
| 4 | Beijing-Kunming | 2865 | 4 | Jinan-Guangzhou | 2110 | 4 | Rongcheng-Wuhai | 1820 | ||
| 5 | Beijing-Lhasa | 3710 | 5 | Daqing-Guangzhou | 3550 | 5 | Qingdao-Yinchuan | 1600 | ||
| 6 | Beijing-Urumqi | 2540 | 6 | Erenhot-Guangzhou | 2685 | 6 | Qingdao-Lanzhou | 1795 | ||
| 7 | Beijing-Harbin | 1280 | 7 | Baotou-Maoming | 3130 | 7 | Lianyungang-Horgos | 4280 | ||
| 8 | Lanzhou-Haikou | 2570 | 8 | Nanjing-Luoyang | 710 | |||||
| 9 | Chongqing-Kunming | 838 | 9 | Shanghai-Xi'an | 1490 | |||||
| 10 | Shanghai-Chengdu | 1960 | ||||||||
| 11 | Shanghai-Chongqing | 1900 | ||||||||
| 12 | Hangzhou-Ruili | 3405 | ||||||||
| 13 | Shanghai-Kunming | 2370 | ||||||||
| 14 | Fuzhou-Yinchuan | 2485 | ||||||||
| 15 | Quanzhou-Nanning | 1635 | ||||||||
| 16 | Xiamen-Chengdu | 2295 | ||||||||
| 17 | Shantou-Kunming | 1710 | ||||||||
| 18 | Guangzhou-Kunming | 1610 |
| S/N | Name of Road Section | Average Daily in 2019 | Average Daily in 2020 | Year on year |
| 1 | Jinan-Qingdao Expressway | 544.91 | 1034.03 | 89.76% |
| 2 | Relevant sections of Beijing-Taibei Expressway | 484.03 | 297.09 | -38.62% |
| 3 | Jinan-Laiwu High-speed Railway | 124.68 | 132.49 | 6.26% |
| 4 | Tai'an-Qufu Section of Beijing-Fuzhou Expressway | 8.13 | 8.87 | 9.06% |
| 5 | Xuchang-Yuzhou Expressway | 54.23 | 47.78 | -11.90% |
| 6 | Weihai-Rushan Expressway | 38.42 | 38.18 | -0.64% |
| 7 | Jinan Yellow River Second Bridge | 139.46 | 98.64 | -29.27% |
| 8 | Weifang-Laiyang Expressway | 81.04 | 94.00 | 16.00% |
| 9 | Hengyang-Shaoyang Expressway | 61.06 | 63.03 | 3.24% |
| 10 | Lijin Yellow River Bridge | 17.92 | 14.85 | -17.15% |
| 11 | Henan Jiyuan-Jincheng Expressway | 73.73 | 45.35 | -38.28% |
| 12 | Hubei Wuhan-Jingmen Expressway | 266.11 | 248.15 | -6.75% |
| Total | 1893.71 | 2122.45 | 12.08% |
(3)The Jinan-Qingdao Project achieved outstanding results, successfully passed the acceptance inspection ofwater and soil conservation and environmental protection, won the "Long Life Pavement Award" of theChina Highway Society and the "Outstanding Project Award" of the International Road Federation, and 10scientific researches reached the international state-of-art level; together with "Beidou-3 Satellite SystemProject" and "First Homemade Aircraft Carrier Project", won the "National Quality Award and OutstandingProject Award" and became the only selected project in China's transportation field.(II) Investment and OperationIn 2020, the Company made steady progress in investment and operation, and effectively maintained thestable operating performance of the Company under the influence of the toll-free policy during the epidemicand the decline in toll revenue, first, the main business has completed the acquisition of A9.68% equity ofGuangdong Expressway; secondly, in capital operation, 11 fund projects have been operated cumulatively.In 2020, the Company realized return on investment of RMB1.472 billion, representing about 50% ofoperating profit. The composition of return on investment is as follows:
Unit: Ten thousand yuan
| Item | Accrual in 2015 | Percentage |
| Long-term equity investment income calculated by the equity method | 57033.97 | 38.74% |
| Where: Weihai Shanghang | 19705.88 | 34.55% |
| Dongxing Securities | 7293.17 | 12.79% |
| Guangdong Expressway A | 6870.95 | 12.05% |
| Fulongma | 2570.63 | 4.51% |
| Investment income of trading financial assets during the holding period. | 49337.82 | 33.51% |
| Where: Evergrande Real Estate Group Co., Ltd. | 43978.66 | 89.14% |
| Yike Tower Investment Project | 4468.35 | 9.06% |
| Interest income of debt investment during holding period | 39934.20 | 27.12% |
| Where: Weifang Shangao new and old kinetic energy conversion fund | 20944.63 | 40.46% |
| Debt Investment under Changying Jin'an | 7326.60 | 37.16% |
| Debt Investment under Changying Jin Peng | 4777.50 | 9.08% |
| BOE Project | 3808.29 | 7.36% |
| Investment income from disposal of long-term equity | 931.64 | 0.63% |
| Including: equity transfer income of the engineering consulting company | 873.70 | 93.78% |
| Total return on investment | 147237.63 | 100.00% |
profitability and risk tolerance. In 2020, Shandong Hi-speed Rail Transit Group Co., Ltd. achieved operatingrevenue of RMB 4.345 billion; net profit attributable to parent company was RMB 325 million, a year-on-year increase of 101%. Including:
1. The railway freight sector realized operating revenue of RMB 2,841,135,400, a year-on-year increase of
19.29%; realized a total profit of RMB 273,766,600, a year-on-year increase of 96.24%; completed transportvolume of 68.64 million tons, a year-on-year increase of 7.8%.
2. The equipment manufacturing sector is mainly reliant upon Railway Construction Equipment Company,a subsidiary of Rail Transit Group. The revenue of Railway Construction Equipment Company in 2020 wasRMB 693.4806 million, with a year-on-year increase of 11.10%; the total profit was RMB 127,928,100,increased by 54.58% year-on-year.II. Major Operation Details during the Report PeriodIn 2020, the Company's annual operating revenue reached RMB 11.365 billion, including toll revenue ofRMB 5.956 billion, railway transportation revenue of RMB 2.495 billion, commodity sales revenue of RMB
1.792 billion, net profit attributable to the parent company of RMB 2.039 billion and investment revenue ofRMB 1.472 billion.(I) Analysis of Principal Businesses
1.Analysis of changes in relevant items in the profit statement and cash flow statement
Unit: yuan Currency: CNY
| Subject | Current-period Amount | Number in the corresponding period of the previous year | Change proportion (%) |
| Operation revenue | 11,365,164,781.15 | 10,414,550,126.20 | 9.13 |
| Operating cost | 7,560,477,000.27 | 5,764,173,616.16 | 31.16 |
| Selling expenses | 10,629,082.64 | 16,982,565.44 | -37.41 |
| Management expenses | 537,241,518.01 | 578,995,480.68 | -7.21 |
| Research and development (R&D) expenses | 67,632,819.17 | 40,248,725.26 | 68.04 |
| Financial expenses | 1,608,808,138.98 | 1,142,084,330.28 | 40.87 |
| Net cash flow from operating activities | 4,309,087,074.78 | 6,463,592,100.07 | -33.33 |
| Net cash flow from investment activities | -4,651,802,759.57 | -9,992,889,768.69 | - |
| Net cash flow from financing activities | 762,623,383.74 | 3,613,805,572.66 | -78.90 |
(1) Analysis of Operations by Industry, Product or Region
Unit: yuan Currency: CNY
| Principal operations by industry | ||||||
| By Sector | Operation revenue | Operating cost | Gross profit margin (%) | Year-on-year increase or decrease in operating revenue (%) | Year-on-year increase or decrease in operating costs (%) | Year-on-year increase or decrease in gross profit margin (%) |
| Expressway toll | 5,955,762,447.62 | 3,217,092,081.49 | 45.98 | -11.49 | 10.84 | Decrease by 10.88 percentage points |
| Revenue from railway transportation | 2,494,571,703.63 | 1,960,753,618.87 | 21.40 | 21.67 | 17.48 | Increase by 2.80 percentage points |
| Revenue from sales of goods | 1,791,583,327.91 | 1,474,542,403.13 | 17.70 | 123.10 | 156.11 | Decrease by 10.61 percentage points |
| Revenue from project construction | 224,352,596.01 | 198,432,758.23 | 11.55 | 331.80 | 875.53 | Decrease by 49.30 percentage points |
| Revenue from expressway trusteeship | 605,713,032.50 | 560,513,537.11 | 7.46 | 18.32 | 13.59 | Increase by 3.85 percentage points |
| Others | 110,940,835.56 | 109,246,356.37 | 1.53 | 29.67 | 67.71 | Decrease by 22.34 percentage points |
| Principal operations by product | ||||||
| By product | Operation revenue | Operating cost | Gross profit margin (%) | Year-on-year increase or decrease in operating revenue (%) | Year-on-year increase or decrease in operating costs (%) | Year-on-year increase or decrease in gross profit margin (%) |
| Principal operations by region | ||||||
| By region | Operation revenue | Operating cost | Gross profit margin (%) | Year-on-year increase or decrease in operating revenue (%) | Year-on-year increase or decrease in operating costs (%) | Year-on-year increase or decrease in gross profit margin (%) |
| Shandong | 4,829,952,422.22 | 2,577,352,852.82 | 46.64 | -5.29 | 16.08 | Decrease by 9.82 percentage points |
| Henan | 258,736,001.79 | 136,713,829.82 | 47.16 | -42.89 | -10.72 | Decrease by 19.04 percentage points |
| Hunan | 175,614,950.41 | 161,461,293.41 | 8.06 | -18.82 | -3.19 | Decrease by 14.84 percentage |
| points | ||||||
| Hubei | 691,459,073.20 | 341,564,105.44 | 50.60 | -27.93 | -5.67 | Decrease by 11.66 percentage points |
| Total | 5,955,762,447.62 | 3,217,092,081.49 | 45.98 | -11.49 | 10.84 | Decrease by 10.88 percentage points |
| Operations by industry | |||||||
| By Sector | Cost structure items | Amount in current period | Percentile (%) of total cost of the current period | Amount of the corresponding period in the previous year | Percentile (%) of total cost for the corresponding period in the previous year | Year-on-year change proportion of amount (%) | Explanations |
| Toll road | Payroll | 65,565.90 | 8.67 | 68,878.52 | 11.95 | -4.81 | |
| Toll road | Depreciation and amortization | 198,087.31 | 26.20 | 157,363.27 | 27.30 | 25.88 | Mainly due to the increase in amortization of Jinan-Qingdao Expressway |
| Toll road | Specific maintenance cost | 52,965.18 | 7.01 | 59,594.91 | 10.34 | -11.12 | |
| Toll road | Other Cost | 5,090.82 | 0.67 | 4,397.26 | 0.76 | 15.77 | |
| Subtotal | 321,709.21 | 42.55 | 290,233.96 | 50.35 | 10.84 | ||
Other statementsNone.
3. Cost
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Subject | Current-period Amount | Number in the corresponding period of the previous year | Change proportion (%) | Explanations |
| Selling expenses | 10,629,082.64 | 16,982,565.44 | -37.41 | The change is mainly due to the decrease in transportation expenses and payroll included in sales expenses; |
| Research and development (R&D) expenses | 67,632,819.17 | 40,248,725.26 | 68.04 | The change is mainly due to the Company's increased investment in research and development; |
| Financial expenses | 1,608,808,138.98 | 1,142,084,330.28 | 40.87 | The change is mainly due to the expending of interest expenditure related to the capital transfer of Jinan-Qingdao Expressway; |
| Expenditure R&D investment in the current period | 67,632,819.17 |
| Capitalization R&D investment in the current period | 0 |
| Sum of R&D investment | 67,632,819.17 |
| Proporation of R&D investment sum in operating revenue (%) | 0.60 |
| The number of R&D staff of the Company | 134 |
| Proportion of R&D staff in the staff of the Company (%) | 2.21 |
| Proportion of capitalization R&D investment (%) | 0 |
| Item | Number at the end of the current period | Number at the end of the previous period | Change proportion (%) | Explanations |
| Cash paid for purchased commodities and accepted services | 6,376,558,265.49 | 4,745,474,004.64 | 34.37 | Mainly due to the growth of trading volume, resulting in an increase in procurement; |
| Other cash paid related to operating activities | 436,716,594.37 | 1,481,600,879.55 | -70.52 | Mainly due to the decrease in current account; |
| Cash received from investment incomes | 1,888,574,853.17 | 1,038,478,559.42 | 81.86 | Mainly due to the actual receipt of dividends distributed by Evergrande |
| Project; | ||||
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 5,999,826.93 | 2,961,505.56 | 102.59 | Mainly due to the increase in disposal of fixed asset; |
| Net cash received from disposal of subsidiaries and other business entities | 0.00 | 312,672,429.53 | -100.00 | Such large amount in the previous period was mainly caused by disposal of Jinan Construction |
| Other cash received related to investment activities | 867,957,496.22 | 533,681,928.19 | 62.83 | Mainly due to recovery of partial loan to Puyuan Real Estate |
| Cash paid for acquisition and construction of fixed assets, intangible assets and other long-term assets | 6,594,615,778.91 | 9,721,032,984.36 | -32.16 | Mainly due to reduction of expenditure on expressway reconstruction and expansion projects |
| Net cash paid for acquisition of subsidiaries and other business entities | 808,945.02 | 0.00 | Payment for getting Shandong Ludao Construction Engineering Co., Ltd. | |
| Other cash paid related to investment activities | 10,841,593.13 | 0.00 | Mainly for the disposal of New Material Technology and Changying Jin’an | |
| Other cash received related to financing activities | 600,000,000.00 | 23,611,355.51 | 2,441.15 | Mainly due to receipt of investment fund for capacity expansion and transformation in the current period |
| Cash paid for dividend distribution, profit and interest | 4,422,451,766.13 | 2,632,807,836.00 | 67.97 | Mainly due to increase in dividend distribution and interest payment on loans |
| Other cash paid related to financing activities | 5,497,918,450.22 | 34,075,113.39 | 16,034.70 | Mainly due to payment of equity transfer of rail transit and liquidation contribution of Trust No.1 |
| Project Name | Number at the end of the current period | Proportion of total assets at the end of the current period (%) | Number at the end of the previous period | Proportion of total assets at the end of the current period (%) | Change proportion at the end of the current period compared with the end of the | Explanations |
| previous period (%) | ||||||
| Trading financial assets | 37,879,166.67 | 0.04 | Arising from new investment | |||
| Notes receivable | 78,553,471.98 | 0.08 | 166,046,781.89 | 0.19 | -52.69 | Due to receipt of acceptance bill |
| Accounts receivable | 519,497,846.78 | 0.56 | 216,250,199.80 | 0.25 | 140.23 | Mainly due to increase in goods trade in the current period |
| Receivables financing | 150,000,016.63 | 0.16 | 108,547,434.59 | 0.12 | 38.19 | Bank acceptance bill increased |
| Contract assets | 160,875,310.33 | 0.17 | Arising from implementation of new income standards | |||
| Other current assets | 3,738,969,498.66 | 4.02 | 1,207,089,124.63 | 1.37 | 209.75 | Mainly due to transfer of equity investment in Evergrande Project and withdrawal from Qingdao Wudaokou New Energy Vehicle Project |
| Other non-current financial assets | 599,602,448.11 | 0.65 | 5,667,934,389.21 | 6.44 | -89.42 | Mainly due to disposal of the equity investment of Evergrande Real Estate Group Co., Ltd. |
| Construction in process | 8,480,761,085.91 | 9.13 | 2,530,414,811.07 | 2.87 | 235.15 | Mainly due to expenditure of Beijing-Taibei Expressway reconstruction and expansion project |
| Short-term loans | 2,861,018,522.06 | 3.08 | 568,567,899.41 | 0.65 | 403.20 | Mainly due to increase in loan for capital turnover |
| Notes payable | 276,072,829.09 | 0.30 | 33,211,430.37 | 0.04 | 731.26 | Mainly due to increase in bill settlement business |
| Advance receipt | 69,254,472.77 | 0.07 | 233,063,704.00 | 0.26 | -70.29 | Mainly due to income carried forward |
| Contract liabilities | 118,774,829.03 | 0.13 | Arising from implementation of new income standards |
| Other payables | 3,484,301,888.14 | 3.75 | 2,660,600,796.25 | 3.02 | 30.96 | Increase in receivables from and payables to related parties |
| Other non-current liabilities due within one year | 3,692,845,879.29 | 3.97 | 2,675,588,903.13 | 3.04 | 38.02 | Mainly due to long-term loan due within one year |
| Deferred Income | 1,593,513,850.06 | 1.71 | 1,209,465,555.56 | 1.37 | 31.75 | Mainly due to increase in government subsidies received |
| Other equity instrument | 3,200,000,000.00 | 3.44 | 2,000,000,000.00 | 2.27 | 60.00 | Mainly due to issuance of perpetual bonds |
| Capital reserves | 1,748,100,650.09 | 1.88 | 4,836,763,252.70 | 5.49 | -63.86 | Mainly caused by merger of Shandong High-speed Rail Transit Group Co., Ltd. under the same control. |
| Other comprehensive income | -47,382,900.51 | -0.05 | 9,953,082.58 | 0.01 | -576.06 | Mainly due to change in other comprehensive income of affiliated enterprises |
| Item | Year-end book value | Restriction reason |
| Monetary funds | 71,537,681.93 | frozen amount due to litigation, security deposit |
| Intangible assets | 30,790,608,704.29 | Pledge borrowing |
| Intangible assets | 262,560,662.30 | Mortgage loan |
| Fixed assets | 21,892,958.90 | Mortgage loan |
| Receivables financing | 57,000,000.00 | Pledged |
high-quality travel service, building the national first-class road and bridge service provider, creating valueto the society, increasing profit to shareholders, bringing benefits to the employees, and realizing high-qualitydevelopment", considered about its own reality and energetically developed investment in principalbusinesses to enhance its core competitiveness; meanwhile, the Company actively promoted funds and othershort-term investment business to construct the synergetic development pattern where industrial managementpropels capital operation, and capital operation nurture industrial management.
(1) Major equity investment
√ Applicable □ Not applicable
| Name | Primary service | Proportion of shareholding | 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, 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. | 51% | Shandong Hi-Speed Group Co., Ltd. holds 49% shares. | The registration of change with the industrial and commercial administration was completed on June 16, 2020. |
| 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, neon lamps and vehicle graphics. | 80% | 20% of shares held by Shandong Hi-Speed Sichuan Industrial Development Co., Ltd. | On January 13, 2021, Lu-Yu Company completed the registration of change with the industrial and commercial administration. the Company has controlled Lu-Yu Company since January 2021. According to |
| the relevant provisions of the Accounting Standards for Business Enterprises, the Company has incorporated it into the scope of merger. For details, please refer to the L2021-001 Announcement on the Progress of Acquisition of 80% Equity Interests in Luzhou Southeast Expressway Development Co., Ltd. and Related Transactions. | ||||
| Guangdong Expressway A | Construction, infrastructure operation management and engineering technology research, planning and design, supervision consulting services | 9.68% | Guangdong Communications Group Co., Ltd. holds 24.56%; Guangdong Highway Construction Co., Ltd. holds 22.30%; Tibet Yingyue Investment Management Co., Ltd. holds 4.84%, and Guangdong Expressway Co., Ltd. holds 2.53%. | In July 2020, the wholly-owned subsidiary investment company of the Company received Yadong Fuxing Yalian Investment Co., Ltd. at the price of 1.348 billion yuan to hold 9.68% of shares of Guangdong Expressway A, becoming the third largest shareholder of Guangdong Expressway. |
| Item | Approval Budget Estimate | Actual progress of the Project | Input Amount in 2020 | Accumulated Actual Input Amount | Note |
| Reconstruction and Expansion Project of Beijing-Taibei Expressway (Dezhou-Qihe Section) | 1,190,433.35 | 52% | 381000.00 | 619112.00 | As of December 31, 2020, 77% of the subgrade works had been completed since the reconstruction and expansion project of Deqi Section of Beijing-Taibei Expressway commenced; pavement works had been completed by 58%; a total of 63% of bridge and culvert works had been completed; the traffic safety works had been completed by 51%; 70% of housing construction had been completed. |
| Reconstruction and Expansion Project of Beijing-Taibei Expressway (Jinan-Tai'an Section) | 657312.87 | 6.98% | 45889.00 | 45889.00 | The Project has been granted 12 special approvals, including pre-examination on land use, planning and location, and social stability assessment, and preliminary design approval from the Ministry of Transportation, and completed the paying-off and surveying work in Jinan and Tai'an. |
| Total | 1,847,746.22 | / | 426889.00 | 665001.00 |
Second, in terms of capital operation, the major project investment details are as follows:
Unit: Ten thousand yuan Currency: CNY
| S/N | Project Name | Total Project Investment | Proposed Investment of the Company | Input Amount in 2020 | Balance of Input Amount of the Company | Description |
| 1 | The trust plan of assembled funds for CR Trust · BOE project intended to invest in the preferred shares project of Mianyang Technology City Industry Investment Fund (Limited Partnership) | 570000 | 50000 | 0 | 50000 | |
| 2 | Jinan Changying Transportation Infrastructure Investment Fund Partnership | 338128 | 76000 | 10000 | 76000 | |
| 3 | Qingdao Changying Jinpeng Equity Investment Partnership (Limited Partnership) | 140100 | 140000 | -16500 | 123064 | |
| 4 | Jinan Changying Jincheng Equity Investment Partnership (Limited Partnership) | 501001 | 501000 | -151000 | 350000 |
| 5 | Jinan Changying Jin'an Investment Partnership (Limited Partnership) | 249910 | 249900 | -245608 | 0 | The project was withdrawn in June 2020. For details, please refer to the L2020-037 Announcement on the Progress of Adjusting Fund Investment Plans and Outward Investment disclosed by the Company on June 30, 2020. |
| 6 | Jinan Changying Jinhai Investment Partnership (Limited Partnership) | 420250 | 420240 | 211401.943 | 211401.943 | 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: Lin 2020-037 |
| 7 | Weifang Shangao new and old energy conversion investment partnership (limited partnership) | 230001 | 150000 | -45000 | 105000 | |
| 8 | Shandong Hi-Speed and Chengtay New Growth Driver Venture Capital fund of Shandong Province | 50000 | 20000 | 2030.58 | 2030.58 | |
| 9 | Jinan Jinming Investment Partnership (Limited Partnership) | 60010 | 60000 | 0 | 56400 | |
| 10 | Shandong Hi-Speed Changying Huitong Equity Investment Fund Partnership (Limited Partnership) | 49000 | 24738 | 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. |
| 11 | Shandong Hi-Speed Zhongtong New Growth Driver Industrial Investment Fund of Shandong Province (Limited Partnership) | 500000 | 34500 | 3450 | 3450 | |
| 12 | Total | 3108400 | 1726378 | -231225.477 | 977346.523 |
(3)Financial assets measured at fair value
√ Applicable □ Not applicable
Unit: Ten thousand yuan Currency: CNY
| Project Name | Beginning balance | Ending balance | Current Change | Influence Sum to Current Profit |
| Evergrande Real Estate Group Co., Ltd. | 500,000.00 | 0 | ||
| Yike Tower Investment Project | 56,389.32 | 56,389.32 | ||
| Specific assets support plan for South Cement Company Limited | 3,570.93 | 3,570.93 | ||
| Specific assets support plan for Chengtay Lease | 6,833.19 | 0 | ||
| Project of Qingdao Wudaokou New Energy Vehicle Industry Fund | 100,000.00 | 0 | ||
| Shandong Hi-speed Culture Media Co., Ltd. | 1,761.47 | 1,761.47 | ||
| Shandong Hi-Speed Greentown Laiwu Xueye Lake Development Co., Ltd. | 518.29 | 0 | -518.29 | |
| Shandong Weilai High Speed Railway Co., Ltd. | 3,162.68 | 3,162.68 | ||
| Shandong Railway Investment Holding Group Co., Ltd. | 30,000.00 | 30,000.00 | ||
| BOCOM Schroders-Champion Rental Asset-Backed Special Plan | 3,787.92 | |||
| Receivables financing | 10,854.74 | 15,000.00 | ||
| Total | 713,090.62 | 113,672.32 | -518.29 |
of the reporting period, the relevant parties reached an agreement on the second land replacement, which wasin progress.(VII) Analysis of Major Controlling and Shareholding Companies
√ Applicable □ Not applicable
Unit: Ten thousand yuan Currency: CNY
| Name of Subsidiary | Nature of Business | Registered capital | Business Scope | Total Assets | Net Assets | Net Profits |
| Hubei Wujing Expressway Development Co., Ltd. | Highway management | 80800.00 | 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. | 846752.08 | 281656.26 | 3823.02 |
| Shandong Hi-Speed Henan Xuyu Road Co., Ltd. | Highway management | 20000.00 | Investment in, operation, management and maintenance of expressway construction, and engineering machinery sales and rental. | 101226.80 | 48206.30 | 2464.91 |
| Shandong Lijin Huanghe Highway and Bridge Co., Ltd. | Highway management | 7000.00 | Road and bridge management and operation | 17768.14 | 13537.67 | 1164.95 |
| Shandong Hi-Speed Investment Development Co., Ltd. | Investment and development | 400000.00 | General activities: investment activities with its own capital; property management; information technology advisory services; housing lease; technical service, technical development, technical consultation, technical exchange, technology transfer and technology promotion; lease of construction machinery and equipment; maintenance of electronic and mechanical equipment (excluding special equipment); installation services for common mechanical equipment; advertising design and agency; advertising (non-radio stations, television stations, newspapers and periodicals publishers); advertising production; sale of building material; sale of gift and flower; sale of mechanical part and spare part; operation of electric wire and cable; sale of mechanical equipment; rental of machinery and equipment; sale of animal husbandry and fishery feed; sale of electronic | 898962.27 | 574234.28 | 18052.30 |
| Name of Subsidiary | Nature of Business | Registered capital | Business Scope | Total Assets | Net Assets | Net Profits |
| product; sale of steel bar product for construction; sale of cement product; maintenance of transportation facilities; landscaping construction; earthwork (except for those subject to approval by law, independent business activities shall be carried out by law with business license); permitted activities: construction project supervision; forest seed production and management; all kinds of construction activities; interior decoration of residential housing, | ||||||
| Shandong Hi-Speed (Shenzhen) Investment Co., Ltd. | Investment and development | 51000.00 | Entrusted asset management; investment management (trust, financial asset management, securities asset management and other restricted projects prohibited); equity investment; entrusted management of equity investment funds. (The foregoing restricted items, except for the items prohibited by laws, administrative regulations and decisions of the State Council, shall be subject to approval) | 97799.14 | 60537.24 | 1329.57 |
| Shandong Hi-speed Rail Transit Group Co., Ltd. | Railway operation | 255275.50 | 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 | 679862.74 | 371804.44 | 41153.35 |
| Name of Subsidiary | Nature of Business | Registered capital | Business Scope | Total Assets | Net Assets | Net Profits |
| 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, 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) | ||||||
| Shandong High Speed Railway Construction Equipment Co., Ltd. | Equipment manufacturing | 11111.00 | research and development, manufacture and sale of rail transit concrete sleepers, ballastless track slabs, catenary pillars, bridge components, shield segments, sound barriers, industrial and civil concrete products and components, ready-mixed commercial concrete and production equipment; ballast fabrication and sale; rental of houses, premises and equipment; sale of sand aggregate; self-management and agency of import and export business of various commodities and technologies, self-run and agency of goods and technologies export and import except those restricted or limited by the State. (Business requiring government approval according to law can only be carried out when such approval from relevant department is obtained) | 91274.11 | 58008.00 | 10773.71 |
Co., Ltd. In accordance with the trust contract, the Trust Plan does not set a fixed duration, and the expectedduration shall not be less than one year, and be subject to the resolution of the investment committee. For theinvestment decision-making committee, the Company delegated three members and Agricultural Bank ofChina delegated one member, and the investment decision-making committee has one director who will beappointed by the Company. An investment decision-making committee meeting shall be held with the morethan half of attendees, and a resolution shall be approved only if more than half the attendees approve it. Asit has the vast majority of members in the investment committee, the Company owns the right to control theTrust Plan.In November 2020, the Company recovered contribution of Bohai Trust · 2019 Production Investment No.01 Pool Fund Trust Plan, and no longer incorporated it in the scope of merger.III. Discussion on and Analysis of Future Development of the Company(I) Industry Pattern and Trends
√ Applicable □ Not applicable
1. Industry pattern
(1) Industry policies
Removed the toll booths at provincial borders, and promoted the charge mode by vehicle (axle) typeclassification. In May, 2019, the State Council printed the Implementation Plan to Deepen the Reform of theToll Roads System and Remove Expressway Toll Booths at Provincial Borders, and proposed to chargeuniformly by vehicle (axle) type classification from January 1, 2020, ensure that no general toll burden isadded to freight transport vehicles, and weigh and detect freight transport vehicles on a nonstop basis atclosed expressway toll booth entries, and required to revise Standards of Vehicle Classification of the Tollfor Highway and adjust the toll charge mode for freight transport vehicles. In connection with the vehicleclassification changes, the classification limit between class 1 and class 2 of passenger transport vehicles isadjusted from the rated persons capacity of 7 to 9. Freight transport vehicles are mainly classified accordingto their total axles, two-axle freight transport vehicles with blue plate are classified as class 1, two-axle oneswith yellow plate are classified as class 2, three-axle ones class 3, four-axle ones class 4, five-axle ones class5, six-axle ones class 6, and those with over six axles are classified as overloaded transport vehicles accordingto the actual number of axles.On the other hand, for the present, China's Regulations on Toll Road Management (revised draft for comment)has not yet been formally implemented, however, the policy thinking provided by its content and the reformprogress of toll road investment and financing mechanism will alleviate the huge stress on payment imbalancein the industry to a certain extent; however, the implementation process of investment and financing reform,the implementation period of the revised Regulations on Toll Road Management and the feedback of policyeffect need continuous observation.During the epidemic control period in 2020, the national toll policy was exempted. To serve the COVID-19prevention and control, promote work resumption and ensure economic development, with the consent of theState Council, from 00:00 of February 17, 2020 to the end of the COVID-19 outbreak, tolls are exemptedfor all the legal toll roads across the nation. According to relevant laws and regulations, relevant supportingsafeguard policies had been enacted one after another, mainly including that during the Toll-Free period, ifthere are difficulties for business entities in repayment of principal and interest of financial debt, policiessuch as delay of interest payment, grace time for repayment of principal or renewal of loan will be given,preferential loan for working capital will be provided for enterprises, and the toll period of toll road will beappropriately extended so as to safeguard the legitimate interest of toll road users, creditors, investors andoperators as a whole. COVID-19 pandemic and toll-free policy for epidemic control have obvious impact onshort-term income and cash flow of toll road industry. However, with the effective control of epidemicsituation, the impact of toll-free policy in the third quarter of 2020 was basically cleared and the stable cashflow of highway toll in the future can still be expected.
(2) Industry trends
Highway operator's road and bridge toll expires; reconstruction and expansion continued. In accordance withthe current Highway Law of the People's Republic of China and Regulation on the Administration of TollRoads, the current profitable expressway toll period is 25 or 30 years. Expressway enterprises will witness atide of expressway asset toll maturity gradually in the future 5-10 years. Currently, reconstruction andexpansion is a valid method to extend the toll period, according to the existing policies, reconstruction andexpansion can lengthen a certain toll period according to the actual investment situation. Essentially, there isno difference in toll period between reconstructed and expanded expressway assets and newly-built ones, butreconstruction and expansion have certain advantages in construction period, incubation period, etc.
Expressway enterprises keeps advancing with sci-tech innovation with smart transportation as core. With theapplication of Internet of Things (IOT), big data, cloud computing, AI and other new technologies andconcepts, technological innovation is continuously promoted in the expressway industry. Ministry ofTransport, in Notice of MOT’s General Office on Accelerating the Next-Generation National Traffic ControlNetwork and Smart Highway Pilots, explicitly mentioned "digitalization of infrastructure, integrated roadtransport CVIS, synthetic application of Beidou high-precision positioning, integrated management of roadnetwork based on big data, “Internet +” road network integrated services, new generation of national trafficcontrol network". Implementation of new measures, such as removal of toll booths at provincial borders, newgeneration of national traffic control network and smart highway pilots, etc., brought chances to thedevelopment of smart expressways.High-quality development is explored through merger and reorganization and external investment.Throughout the expressway industry, due to the nature of heavy assets and high liabilities of the expresswayindustry, in recent years, private enterprises have gradually withdawn from the industry, and expressways inseveral provinces which are operated and managed by a few state-owned expressway enterprises, formingthe industry pattern of oligopoly. The industry pattern of oligopoly has accelerated the reorganization andintegration process of state-owned enterprises in the expressway industry, and explored high-qualitydevelopment step by step.(II) Development Strategies
√ Applicable □ Not applicable
1. Development Philosophy
The company will adhere to the people-oriented principle, focus on her main business of road and bridge,seize the opportunity of replacing old growth drivers with new ones, let the public take the safest, smoothestand most comfortable road, enjoy high-quality travel services, become a national first-class service providerin transportation infrastructure investment, construction and operation, turn into the main force in replacingold growth drivers with new ones in the transportation field, create value for society, increase benefit toshareholders, bring benefits to employees, realize high-quality development, and contribute to constructionof a strong province and a strong country of transportation.
2. Development Targets
the Company will adhere to independent innovation, focus on her main business, cultivate her corecompetitive advantage, seize opportunities, and realize continuous self-transcendence through rollingdevelopment of road and bridge as her main business. the Company has expanded her scope of businessthrough acquisition and merger, cooperative development and so on with appropriate related diversification;kept looking for new profit drivers and enhancing the development potential of her enterprise so as to trulybecome a glory century enterprise for sustainable development. With a strong sense of social responsibility,the Company will promote environmental protection and local economic prosperity, reward investors withsustained outstanding performance, provide high-quality and efficient services to customers, and providegood protection and growth conditions for employees so as to gain public respect,
3. Development strategies
first, focus on the main business and seek progress while maintaining stability: focus on the investment,development and operation of roads and bridges, concentrate her high-quality resources to support thedevelopment of main business, and rely on smart high-speed business to do a good job in operation,maintenance and management output;secondly, being led by investment, rebuild strengths: guided by project investment, lead the layout ofExpressway Share in the entire transportation industry chain and form key capabilities; and make full use ofcash flow advantage of expressway enterprises, actively explore areas seeking stable return on investment assecondary business, and create new stable profit drivers;thirdly, being empowered by science and technology to improve quality: take the application of science andtechnology as an effective means, comprehensively improve the Company's scientific and technological level,build a high-quality travel service brand, help the expressway become safe and smooth, and reduce cost andimprove efficiency.(III) Business Plan
√ Applicable □ Not applicable
1. Complete the task of ensuring smooth operation
first, establish the idea of "forming one network" for the entire province, coordinate the operation ofexpressways inside and outside the province, and keep improving important indicators such as ETC passing
rate; secondly, take road safety and passage as the top priority, deepen the "visualized smart dispatchingsystem", improve the dispatching system and road network obstacle clearance and rescue system, focus onsolving the problem of regional safety and passage, and strive for 100% acceptability of "2030" obstacleclearance and rescue brand in key sections; thirdly, relying on information construction, promote intelligentroad operation and digital enterprise construction with systematic thinking, and build a smart high-speedmodel project in Shandong; fourthly, promote visualization of road and bridge maintenance, managementvia big data and scientific decision-making, explore artificial intelligence to assist maintenance, inspectionand disease analysis, and further improve the quality of professional staff and the level of maintenance IT,intelligence and specialization; fifthly, strengthen the implementation of operation and management servicestandards and continuously provide high-quality travel services; sixthly, develop the service zone brand withregional characteristics, provide "service area+" value-added services, create new windows for civilizedservices, new positions for profit and income generation, and innovate new engines for management.
2. Complete the task of increasing income and reducing expenditure
First, change the way of thinking and pay attention to finding ways to "increase income": all production andoperation activities should fully consider reducing the impact on operating fees and seize the maincontradiction in cost reduction and efficiency improvement; secondly, improve the management system ofleaking stoppage and increasing income, auditing and fighting against dodging toll, make good use ofauditing platforms at all levels, dig deep into ETC and gantry check functions, sort out and summarize newmethods of check over dodging toll, and strive to increase income by over 0.3% all year round; thirdly, fullyestablish market and management awareness, continue to improve and deepen all marketing measures,explore other ways such as cooperation with logistics groups, and lead cars to make new breakthroughs;fourthly, adhere to the concept of running business frugally, strengthen the rigid control over cost, reducesome expenditures, fully launch the financial sharing system online and strengthen financial management;fifthly, focus on the full life cycle maintenance, fully implement preventive maintenance, and scientificallymanage investment and expenditure; rationally plan the maintenance work during the "14th Five-Year Plan"period, and focus on the all-weather maintenance scheme that breaks through the rainy and snowy weatherin winter.
3. Complete the crucial task of capital operation
First, give full play to the role of the capital market and the platform of listed company, and realize therefinancing of the capital market by issuing stocks and other capital operation means; introducing strategicinvestors, optimizing ownership structure and expanding capital operation space; deepen value managementand investor service to keep enhancing the Company's value; The second is to further focus on the mainresponsibility and main business, horizontally merge expressway projects, and combine with the expansionof vertical industrial chain, so as to realize the coordinated development of the Company's "bigtransportation" industry. In particular, the Company plays a dominant role in the whole industrial chain,focuses on the development of new materials for road use, expands the road raw materials industryconditionally, and seeks profits downstream of the industrial chain. The third is to appropriately control theproportion of financial investment, strengthen the development of idle assets, revitalize idle assets, andincrease asset returns.
4. Complete the crucial task of industrial expansion
First, improve the investment layout of the main industry chain and realize the coordinated development ofthe Company's "Big Move" industry; secondly, explore entry into government- purchased service industriessuch as environmental protection and garbage disposal, and cultivate the Company's second business; thirdly,complete and operate six idle asset development formats, commence four new idle asset development projects,one government purchasing and storing project, and 10 logistics distribution stations based on regionalcharacteristics, revitalize idle asset and improve asset returns in combination with the logistics backbonenetwork; fourthly, let the construction sector insist on "going global" to create new profit drivers for theCompany.
5. Complete the crucial task of project construction
First, the Beijing-Taibei-De-Qi Project is expected to complete investment of RMB 2.05 billion and will beready for opening to traffic by October; focus on supervising controllable works and key milestones, focuson improving special quality such as pavement smoothness, and focus on site construction safetymanagement such as Jian River and Tuhai River Bridges construction for success of the project; secondly,Beijing-Taibei-Ji-Tai Project aims to "build a national first-class model of reconstruction and expansionproject", deepen the construction of green roads, plan smart expressway construction in advance, andcomplete investment of RMB 1.26 billion to ensure completion of key milestone tasks.(IV) Possible Risks
√ Applicable □ Not applicable
1. Macroeconomic and policy risks
2021 is not only the first year of the 14th Five-Year Plan, but the first year of economic recovery after theepidemic, the first year to achieve the second centennial goal, and the first year of the new US administrationafter the Sino-US economic and trade friction, facing the opening of many historic gateways. The majorrestructuring of world pattern puts forward a new requirement for China's macro-control policies, taking intoaccount short-term fluctuations and long-term development, cross-cycle regulation aiming at solvingstructural and long-term problems in the process of economic development has become the administrativeframework in the new era. In this special period, there are still a large number of unpredictable risks andchallenges in China's macro economy. The highway transportation economic cycle has high coupling withmacroeconomic cycle, and economic cyclical changes directly influence the demands of economic activitieson transportation resources. In addition, in the post-epidemic era, the impact of epidemic on transportationindustries such as expressways will continue and there is still some uncertainty.Countermeasures: on one hand, the Company will strengthen contact and communication with competentgovernmental authorities, especially transportation, finance, taxation and price administrations, and seekpolicy support from competent governmental authorities for expressways; pay close attention to relevantgovernmental policy information, collect, analyze and comprehensively process external data, strengthen theresearch on relevant governmental principles and policies, and make corresponding business decisions in atimely manner; on the other hand, accelerate the transformation and development, cultivate diversified profitdrivers, and reduce the dependence on tolling, try the best to avoid the adverse impact of industrial policieson the Company; and do a good job in capital planning in advance, strengthen capital operation, long-termfinancing and business planning, and enhance the overall risk tolerance.
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 with a700 kilometers from 2018 to 2035, and focus on upgrading and reconstruction, make overall planning fo newprojects and reconstruction and expansion ones, accelerate to optimize the layout and perfect the network,solve congestion in main highways and sections across the Yellow River, and make the highway mileagereach 8000 kilometers by 2022; accelerate to implement the highway connecting line project, energeticallyenhance the network connection efficiency and connectivity level, and further optimize the highway networklayout in main roads by 2025; achieve the total highway network scale up to 9000 kilometers which can coverall counties (cities and districts) across the Province, increase the expressway entries and exits to 27, formthe network layout of "nine vertical expressways, five horizontal expressways, one ring expresswayencircling Shandong Province, seven radiant expressways, and multiple connecting lines", and strive torealize the goal that there are over two connecting expressways within a passageway. As the expresswaynetwork gets improved year by year, there are parallel or alternative paths in some sections, objectivelyresulting in vehicle divergence in such sections.Solutions: First, the Company will focus on satisfying customer demands, strengthen the customerrelationship management, perfect the customer demand survey and analysis working mechanism, subdividecustomer markets, provide efficient, considerate and personalized service, and build the brand of"harmonious Hi-Speed"; second, the Company will take the establishment of cosy travel environment as base,promote the maintenance mechanization, standardized renovation and brand improvement, create favorablehighway technical situations and road appearance, and build the brand of "cosy Hi-Speed"; third, theCompany will be based on providing smart and thoughtful service, actively develop and apply big data, builda big data management platform and road network operation collaboration platform, conduct the pilot schemeof "unmanned" toll booths, develop new media information release channels, perfect the public informationservice system, and build the brand of "smart Hi-Speed"; and, the Company will continuously improve itsservice quality and increase the viscosity to sections operated by the Company of drivers and conductors.
3. Project expansion risks
In respect of the principal road and bridge business, the Company has acquired high-quality in-serviceexpressways at a low cost; in respect of investment expansion, the Company has invested in related road andbridge industry and value chains and energy conversion; in respect of financial investment, the Company hasselected projects which comply with national policy orientation and provincial industry planning, andadvanced projects with low risks and quick returns on a priority basis. The Company has expanded itsbusinesses from traditional road and bridge operation to investment in related road and bridge industry andvalue chains, energy conversion, and values. Entry into new investment fields is definitely with certain risks,including wrong judgment risk, investment target cognition risk, investment financial risk, and subsequent
management and integration risk, etc.Countermeasures: first, attach greater importance to risk control. strengthen the internal control on theCompany's foreign investment, make full use of external forces such as expert argumentation meetings andintermediary organizations, and provide a strong basis for the Company's investment decision; Second,explore the target of stable industry layout, high dividend rate, return on net assets, profitability and net profit,and more stable cash dividends with financial investment. carry out all-round investigation, scientificscreening and full demonstration and make careful investment choices on industries and investment targets;thirdly, in direct investment, focus on expressway leading and smart expressway industries: participate ininvestment on leading expressway companies outside the province through equity participation to obtainstable return on investment from Highway Property; expand the proportion of shares in core HighwayProperty outside the province, improve the stability of the overall performance of Joint-stock Company andreduce regional risk.
4. Construction management risks
By 2021, the reconstruction and expansion project of Beijing-Taibei Expressway will have been in thecentralized construction period and the Company will have been in the peak of project construction, and thetotal final project investment amount might exceed the budget due to removal of some pipelines along thereconstruction and expansion engineering, building material price fluctuation, engineering changes, newpolicies and technical specifications issued by governments, development plan adjustment by governments,and other unforeseeable factors.Solutions: the Company has a professional construction management team which has accumulated richexperience in construction management from construction of Jinan-Qingdao Expressway, the firstexpressway in Shandong Province, to reconstruction and expansion of the Expressway. the Company willtake the following measures for Reconstruction and Expansion Project of Beijing-Taibei Expressway toreduce the construction risk: first, optimize the design and construction method to minimize demolition,relocation and construction workload; secondly, make key materials supplied by the Employer and purchasecentrally to reduce material cost; thirdly, scientifically arrange construction processes, reasonably shortenconstruction period and reduce management cost; fourthly, optimize the change proposal, control the numberof changes and reduce the amount of changes; fifthly, formulate strict quality management systems,standardize quality control measures and determine the foundation of quality control; promote constructionstandardization, enforce the First Project Approval System, and guide participants to change from traditionalextensive type to modern intensive; sixth, strengthen field control to achieve environmental protection andcivilized construction. Seventh, based on ensuring unimpeded traffic, to particularly take actions againstsevere weather, key construction sites and roadside traffic safety guaranty, and achieve unimpeded and safetravel.(V) Other
□ Applicable √ Not applicable
IV. Disclosures not according to the code of conduct due to inapplicability to such code of conduct ornational secrets, business secrets or other special reasons, and explanations of reasons
□ Applicable √ Not applicable
Chapter V Material MattersI Common stock profit distribution or common reserves capitalizing pre-plan(I). Cash dividend policy making, execution or adjustment
√ Applicable □ Not applicable
1. The Company has specified the profit distribution policies in the Articles of Association in accordancewith Notice of the China Securities Regulatory Commission on Further Implementing Cash Dividends ofListed Companies and Supervision Notice of Shandong Branch of China Securities Regulatory Commissionon Revising the Clauses on Cash Dividends in Articles of Association of Companies ([2012] No. 5) andUrgent Notice of Shandong Branch of China Securities Regulatory Commission on Revising the Clauses onCash Dividends in Articles of Association of Companies (Luzhengjiangongsi [2012] No. 48), etc. Asspecified in Clause 196.02 of Articles of Association: "Except under exceptional circumstances, when therealized net profit of the current year is positive and the accumulated undistributed profit at the end of sucha year is also positive, the Company shall distribute dividends in cash, and the profit distributed in cash shallbe no less than 10% of the realized distributive profit of the current year, and the accumulated distributedprofit in cash in the recent three years shall be no less than 30% of the realized average distributive profit ofsuch three years.".
2. The annual profit distribution plan of the Company shall be proposed and drafted by the Board of Directorsin conjunction with the provisions of the Articles of Association, profitability, capital supply and demands.Whilst reviewing the cash dividend scheme, the Board of Directors shall carefully study and demonstrate thetiming, conditions and minimum proportion of cash dividends, adjustment conditions and decision-makingprocedure requirements, etc. Where independent directors, after study and demonstration, believe that suchcash dividend scheme complies with relevant laws and regulations and various rules and regulations of theCompany, and is without prejudice to the benefit of company shareholders, especially that of minorityshareholders. The profit distribution scheme shall be implemented subject to the review and approval of theShareholders' Meeting after being reviewed by the Board of Directors. The Company also listens to theminority shareholders' suggestions and advice on dividend policies and schemes via investor hotline,company email, etc.
3. During the report period, the annual profit distribution scheme of 2019 of the Company has been approvedin the annual shareholders' meeting of 2019 held on June 23, 2020, and it is decided to distribute the cashdividend at 3.80 Yuan (tax-included) per ten shares to all the shareholders with the base number of4,811,165,857 shares, with the total dividends of CNY1,828,243,025.66 Yuan (tax-included). On July 10,2020, the Company completed dividend distribution of 2019.
4. On July 30, 2020, the Company disclosed the ROE Planning of Shandong Expressway Co., Ltd. for theNext Five Years (2020-2024). If conditions permit for cash dividend, the Company's annual profit distributedin cash in the next five years (2020-2024) shall not be less than 60% of the net profit attributable to the ownerof the parent company in the consolidated statement realized in that year.After being audited by Shinewing Certified Public Accountants (Special Partnership), the net profitattributable to owners of the parent company in 2020 after consolidation is CNY 2,038,999,018.13, where:
the net profit achieved by the parent company is CNY2,242,060,666.99. After withdrawing the statutoryreserves of CNY224,206,066.70 at a ratio of 10% of the achieved net profit of the parent company, theretained earnings is 2,017,854,600.29 . The accumulated distributable profits of parent company in 2020 isCNY16,232,090,812.89. The company intends to distribute, based on the total capital shares of 811,165,857on December 31, 2020, the cash dividend of CNY3.80 (including tax) upon 10 shares with the total cashdividends of CNY1,828,243,025.66 , and distribute the surplus undistributed profit of CNY189,611,574.63after carry-over. The company didn't increase stock capital by common reserves capitalizing in 2020.(II)Common stock profit distribution or common reserves capitalizing pre-plan or plan during therecent three years (including the report period)
Unit: yuan Currency: CNY
| Annual dividend | Number of dividend shares per ten shares (shares) | Number of dividend payout shares per ten shares (Yuan) (Tax- | Number of coverted shares per ten shares (shares) | Amount of Cash dividends (Tax-included) | Net profit attributable to common shareholders of the listed companies in consolidated statements in dividend years | Proportion of net profit attributable to common shareholders of the listed companies in consolidated |
| included) | statements (%) | |||||
| 2020 | 0 | 3.80 | 0 | 1,828,243,025.66 | 2,038,999,018.13 | 89.66 |
| 2019 | 0 | 3.80 | 0 | 1,828,243,025.66 | 3,043,591,513.37 | 60.07 |
| 2018 | 0 | 2.21 | 0 | 1,063,267,654.40 | 2,943,890,710.90 | 36.12 |
| Commitment Background | Commitment Type | Commitment Party | Commitment Content | Commitment Date and Period | Is there a performance period | Is the commitment performed strictly |
| Commitments related to significant 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 | 2016.9.22 | Yes | Yes |
| 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 connected 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 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 | 2010.11.15, Long-term effective | Yes | Yes |
| 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 amount of Wujing Freeway from 2018 to 2020 and the accumulated net profit amount of the three fiscal years as calculated in the assessment reports. Hi-Speed Group will make payment within 30 days from the date when the financial statement of 2020 of Shandong Hi-Speed is reviewed and approved by the Shareholders Meeting. | 2018.07.31 | Yes | Yes |
Company" or "Target Enterprise") held by the Company's controlling shareholder, Hi-speed Group, withRMB 2.766 billion. The Company has included it in the scope of consolidated financial statements sinceNovember 1, 2018. For details, please refer to the Announcement on Acquisition of 60% Equity and RelatedTransactions of Hubei Wujing Freeway Development Co., Ltd. (Announcement No.: L2018-028) disclosedby the Company on the website of Shanghai Stock Exchange (www.sse.com.cn).In order to safeguard the legitimate interest of the Company and all her shareholders, after amicablenegotiation between SDHS and the Company, the Parties thereto reached the following agreement oncompensation: if the accumulated net profit actually realized by the target enterprise in the 3-year period aftercompletion of this transaction (including the year of this transaction, that is, 2018~2020) did not reach theaccumulated net profit (RMB 960,554,869.89) of the 3 fiscal years calculated according to the EvaluationReport, SDHS will make compensation to the Company, except in case of force majeure or any significantchange to national toll road laws and policies.Completion of performance commitment: (1) in 2018, Wujing made profit of RMB 350.8141 million andfulfilled 36.52% of the performance commitment; (2) in 2019, Wujing made net profit of RMB 315.631million and fulfilled 69.38% of the performance commitment in total; (3) as affected by COVID-19 Pandemicand the toll free policy, Wujing made net profit of RMB 65.6456 only million in 2020 and fulfilled 76.22%of the performance commitment.On March 29, 2021, the Company held the 19th Session of the 6th Board of Directors and the 7th Session ofthe 6th Board of Supervisors, which has deliberated and resolved the Proposal on Adjusting the PerformanceCommitment Period of Subsidiaries and Adding Performance Commitment. In view of relevant policiesissued by the central government and Hubei Province to control the epidemic and promote the resumption ofwork and production as well as the substantial impact on toll service of Wujing, in order to promote thesustainable development of Wujing and safeguard the interest of the listed company and shareholders, thefollowing Supplementary Agreement on Profit Compensation Agreement for Equity Transfer of HubeiWujing Freeway Development Co., Ltd. (hereinafter referred to as the Supplementary Agreement) was madeby and between the Company and SDHS: after the estimated reduction of toll dues by RMB 28.4902 millionaccording to existing policies in 2020 and 2021 when COVID-19 has the most serious impact, resulting in adecrease in net profit of RMB 17.4596 million, if the accumulated net profit actually realized by the targetenterprise in the 4-year period after completion of this transaction (including the year of this transaction,excluding 2020, that is, in 2018, 2019 and 2021) did not reach the accumulated net profit (RMB 999.4424million) of the three fiscal years calculated according to the Evaluation Report (net of the impact of expectedreduction of toll dues by RMB 28.4902 million according to the existing policy in 2021, resulting in reductionof net profit by RMB 17.4596 million, the same below), Party A (SDHS) will make compensation to PartyB (Company), except in case of force majeure or any significant change to national toll road laws and policies.Such adjustment and additional commitment need to be examined and approved by the General Meeting ofthe Company. Independent directors expressed their independent opinions of consent to this adjustment. Fordetails, please refer to the Announcement on Adjusting the Subsidiary’s Performance Commitment Periodand Additional Performance Commitments (Announcement No.: 2021-019) disclosed by the Company onthe website of Shanghai Stock Exchange (www.sse.com.cn) on the same day.(III)Performance undertaking completion and its influence on goodwill impairment test
□ Applicable √ Not applicable
III. Fund Embezzlement and Default Clear-up Progress during the Report Period
□ Applicable √ Not applicable
IV. Explanations of "Modified Auditor's Report" issued by Accountants Firm
□ Applicable √ Not applicable
V. Analysis and Explanations of Changes in and Influences from Accounting Policies and Estimates,or Reasons for and Influences from Correcting Major Accounting Errors(I) Analysis and Explanations of Changes in and Influences from Accounting Policies and Estimates
√ Applicable □ Not applicable
The Ministry of Finance promulgated the revised Accounting Standards for Enterprises No.14–Revenues in2017. The Company has implemented the above standards since January 1, 2020, and made correspondingadjustments to the financial statements on January 1, 2020 in accordance with the provisions on convergenceof the above standards.(II) Analysis and Explanations of Reasons for and Influences from Correcting Major AccountingErrors
□ Applicable √ Not applicable
(III) Communications with the Former Accountant Firm
□ Applicable √ Not applicable
(IV)Other explanations
□ Applicable √ Not applicable
VI. Appointment and Dismissal of Accountant Firms
Unit: yuan Currency: CNY
| Current appointment | |
| Name of domestic accountant firm | Shinewing Certified Public Accountants (Special Partnership) |
| Remuneration of domestic accountant firm | 678,900 |
| Audit term of domestic accountant firm | 5 |
| Name | Remuneration | |
| Accountant Firm for internal control audit | Shinewing Certified Public Accountants (Special Partnership) | 200,000 |
Unit: Ten thousand yuan Currency: CNY
| Within the report period: | |||||||||
| Prosecutor (Applicant) | Responding Party (Respondent) | Party bearing joint and several liabilities | Type of litigatioNot applicablerbitration | Basic profile of litigation (arbitration) | Amount of Litigation (Arbitration) | Whether such litigation (arbitration) has formed anticipation 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 actions | 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 with henzhen Kenxin Group Co., Ltd. and its ownership units of Shenzhen Fengchuang Trade Co., Ltd., Shenzhen Litianjun Supply Chain Co., Ltd., and Shenzhen Zhongmanli Trade Co. Ltd. | 68,035.68 | No | A 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 opposition to execution made by persons not involved in the case Shandong Province Higher People's Court was rejected; in early January, 2020, the appeal for opposition to execution made by persons not involved in |
(III) Other instructions
□ Applicable √ Not applicable
XI. Punishment and Rectification of Listed Companies, their Directors, Supervisors, Senior Executives,Controlling Shareholders, Actual Controlers and Acquirers
□ Applicable √ Not applicable
XII. Explanations of Integrity of the Company, its Controling Shareholders and Actual Controlerduring the Report Period
√ Applicable □ Not applicable
After referring to National Enterprise Credit Information Publicity System, Shandong Hi-Speed Group Co.,Ltd., the controlling shareholder of the Company, is in good faith without illegal or administrativepunishment record.XIII. Details and Explanations of Equity Incentive Plan, and Employee Stock Ownership Plan, orOther Employee Incentive Measures(I) Incentive matters having been disclosed in interim announcements without any change in follow-up implementation
√ Applicable □ Not applicable
| Overview of Events | Search Index |
| Release of Shandong Hi-speed Stock Option Incentive Plan (Draft) (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: Lin 2020-036. |
| The exercise price of the Company’s stock option is adjusted from RMB 4.34 per share to RMB 3.96. | See the Announcement (No. P.2020-042) of Shandong Hi-Speed Co., Ltd. on Adjusting the Exercise Price of Stock Option disclosed by the Company on the website of Shanghai Stock Exchange on July 30, 2020 for detail. |
| The registration of the first grant of the Company's stock option incentive plan is completed. | See the Announcement (No. P.2020-045) of Shandong Expressway Co., Ltd. on Completion of Registration of First Grant of Stock Option Incentive Plan disclosed by the Company on the website of Shanghai Stock Exchange on August 12, 2020 for detail. |
| the Company has granted 4,663,700 stock options to 34 incentive objects and the reserved grant date is March 30, 2021. | See the Announcement (No. Pro 2021-021) on Granting Reserved Stock Options to Incentive Objects disclosed by the Company on the website of Shanghai Stock Exchange on March 31, 2021 for detail. |
Other incentive measures
□ Applicable √ Not applicable
XIV. Material Connected Transactions(I) Connected transactions related to day-to-day operations
1. Events disclosed in interim announcements without subsequent development or changes duringimplementation
√ Applicable □ Not applicable
| Overview of Events | 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 to Sign 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 shareholders' meeting on June 2, 2018 reviewed and approved the Pre-plan to Sign 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 Weiri Expressway), the Pre-plan to Sign Agreement on Asset Entrustment Management (Yantai-Haiyang Expressway), the Pre-plan to Sign Agreement on Asset Entrustment Management (Heze-Guanzhuang Expressway, North Line of Qingdao-Yinchuan Expressway Circling Jinan), and the Pre-plan to Sign Agreement on Asset Entrustment Management (Zaozhuang-Linyi Expressway), and the meetings agreed that the Company and Hi-Speed Group should continue implemeting 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 Weiri 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 Weiri 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. | The detailed information is available in the Announcement on Day-to-day Connected Transactions of Shandong Hi-Speed with announcement No. of Lin 2016-062 on December 10, 2016 and Announcement on Day-to-day Connected Transactions of Shandong Hi-Speed with announcement No. of Lin 2018-024 on June 2, 2018 disclosed in the website of Shanghai Stock Exchange. |
Co., Ltd., and the Proposal for Signing Entrustment Agreement on Operation Management (Weifang-RizhaoExpressway) with Shandong Hi-Speed Weiri Expressway Co., Ltd. The Company signed entrustmentAgreements on Operation Managements with Shandong Juanhe Expressway Co., Ltd., Shandong Hi-SpeedLongqing Expressway Co., Ltd., and Shandong Hi-Speed Weiri Expressway Co., Ltd. (hereinaftercollectively referred to as the "project companies"), which are wholly-owned or controlled subsidiaries of theCompany's controlling shareholder Hi-Speed Group, for respective entrusted management of Juancheng-Heze Expressway, Longkou-Qingdao Expressway and Weifang-Rizhao Expressway, with the entrustmentcost of 203,159,100 yuan in 2020.On December 30, 2019, the Company signed entrustment agreements on operation managements withShandong Hi-speed Gaoguang Highway Co., Ltd., Shandong Hi-Speed Taidong Highway Co., Ltd., andShandong Hi-speed Linzao-Zaomu Highway Co., Ltd. (hereinafter collectively referred to as the "projectcompanies"), which are controlled subsidiaries of Hi-Speed Group, for respective entrusted management ofGaoqing-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-SpeedTaidong Highway Co., Ltd., Shandong Hi-Speed Linzao-Zaomu Highway Co., Ltd., and Shandong Hi-SpeedLongqing Expressway Co., Ltd. has been changed from Hi-Speed Group to Shandong Hi-Speed ConstructionManagement Group Co., Ltd., the wholly-owned subsidiary of Hi-Speed Group; Shandong Hi-Speed WeiriExpressway Co., Ltd., and Shandong Hi-Speed Gaoguang Highway Co., Ltd. have been managed by theConstruction Management Group under the entrustment of Hi-Speed Group. On May 27, 2020, the 2ndmeeting of the Sixth Board of Directors of the Company reviewed and approved the Proposal for Signing theOperation Management Entrustment Agreement. It was agreed in the meeting that the Company, togetherwith Construction Management Group and companies held by it or under its management includingShandong Hi-speed Gaoguang Highway Co., Ltd.,Shandong Hi-Speed Taidong Highway Co., Ltd.,Shandong Hi-speed Linzao-Zaomu Highway Co., Ltd., Shandong Juanhe Expressway Co., Ltd., ShandongHi-Speed Longqing Expressway Co., Ltd., and Shandong Hi-Speed Weiri Expressway Co., Ltd., jointlysigned the Entrustment Agreement on Operation Management. The total entrusted management cost is299,947,200 yuan in 2020, and the trusteeship period is one year. The cost to be shared by the projectcompanies is determined by Construction Management Group in coordination with the project companies,and Construction Management Group is jointly and severally liable for the expenses required to be paid bythe project companies. The detailed information is available in the Announcements of Shandong Hi-Speed onSigning ETC Service Agreement and Day-to-day Connected Transactions disclosed on May 29, 2020(Announcement No.: Lin 2020-024).
3. Matters not disclosed in interim announcements
√ Applicable □ Not applicable
Unit: Ten thousand yuan Currency: CNY
| Connected transaction parties | Affiliation Relationship | Type of connected transactions | Content of connected transactions | Connected transaction pricing principles | Affiliate Transaction Price | Affiliate Transaction Amount |
| Shandong Hi-Speed Engineering Detection Co., Ltd. | Controling subsidiaries of the parent company | Receive Labor service | SDHS 2020-2022 Highway Technical Condition Inspection and Bridge and Tunnel Health Monitoring Project (including Scientific Research) | Public bidding | 3,884.07 | 3,884.07 |
| Shandong Hi-Speed Engineering Detection Co., Ltd. | Controling subsidiaries of the parent company | Receive Labor service | Contract Agreement for SDHS 2020-2022 Highway Technical Condition Inspection and Bridge and Tunnel Health Monitoring (including Scientific Research) Project (Wujing) | Public bidding | 1,641.83 | 1,641.83 |
| Shandong Hi-Speed Engineering Detection Co., Ltd. | Controling subsidiaries 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. | Controling subsidiaries of the parent company | Receive Labor service | Contract Agreement of SDHS 2020-2022 Highway Technical Condition Inspection and Bridge and Tunnel Health Monitoring Project (including Scientific Research) (Hengshao Asset held by SDHS Co., Ltd.) | Public bidding | 537.80 | 537.80 |
| Shandong Hi-Speed Engineering Detection Co., Ltd. | Controling subsidiaries of the parent company | Receive Labor service | Investigation and Evaluation of Existing Highway in Reconstruction and Expansion Project of Jinan-Tai'an Section of Beijing-Taibei Expressway | Public bidding | 528.42 | 528.42 |
| Shandong Hi-Speed Engineering Detection Co., Ltd. | Controling subsidiaries of the parent company | Receive Labor service | Construction Agreement of Bridge Sensor Construction Project of Jiyuan Jijin Expressway Co., Ltd. | Public bidding | 279.60 | 279.60 |
| Shandong Hi-Speed Engineering Consulting Co., Ltd. | Wholly owned subsidiary of the parent company | Receive Labor service | Supplementary Contract Agreement for Supervision of Special Maintenance Project (2020) of SDHS for 2019-2020 | Public bidding | 1,017.40 | 1,017.40 |
| Shandong Hi-Speed Qilu Construction Group Co., Ltd. | Controling subsidiaries of the parent company | Receive Labor service | EPC Contract for Existing Housing Infrastructure Reconstruction and Upgrading Project along Jinan-Qingdao Expressway | Public bidding | 4,315.90 | 4,315.90 |
| Shandong Hi-Speed Qilu Construction Group Co., Ltd. | Controling subsidiaries of the parent company | Receive Labor service | EPC Contract for Existing Housing Infrastructure Reconstruction and Upgrading Project along Jinan-Qingdao Expressway | Public bidding | 3,081.94 | 3,081.94 |
| Shandong Hi-Speed Information | Controling subsidiaries | Purchase goods | SDHS 2020 Mechanical and | Public bidding | 2,434.48 | 2,434.48 |
| Engineering Co., Ltd. | of the parent company | Electrical Equipment Purchase Contract (the Joint Stock Company) | ||||
| Shandong Hi-Speed Information Engineering Co., Ltd. | Controling subsidiaries of the parent company | Purchase goods | Mechanical and Electrical Equipment Purchase Contract of Deqi Section of Beijing-Taibei Expressway | Public bidding | 10,329.64 | 10,329.64 |
| Shandong Hi-Speed Information Engineering Co., Ltd. | Controling subsidiaries of the parent company | Purchase goods | Equipment purchase contract for 2020 electromechanical engineering project of Shandong Hi-Speed | Public bidding | 7,179.82 | 7,179.82 |
| Shandong Hi-Speed Information Engineering Co., Ltd. | Controling subsidiaries 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. | Controling subsidiaries of the parent company | Purchase goods | Equipment purchase contract for 2020 electromechanical engineering project of Shandong Hi-Speed (Beijing-Taibei) | Public bidding | 426.12 | 426.12 |
| Shandong Hi-Speed Information Engineering Co., Ltd. | Controling subsidiaries of the parent company | Purchase goods | Mechanical and Electrical Equipment Purchase Contract for SDHS Project of Canceling Provincial Toll Stations | Public bidding | 527.63 | 527.63 |
| Shandong Hi-Speed Information Engineering Co., Ltd. | Controling subsidiaries of the parent company | Purchase goods | SDHS 2020 Mechanical and Electrical Engineering Project Contract (Equipment Package) | Public bidding | 936.60 | 936.60 |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Controling subsidiaries of the parent company | Receive Labor service | SDHS 2020 Minor Repair and Maintenance Project (Xiajin Transportation Management Center) Construction Contract, Construction Safety Production Contract and Construction Integrity Contract | Public bidding | 2,183.76 | 2,183.76 |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Controling subsidiaries of the parent company | Receive Labor service | SDHS 2020 Minor Repair and Maintenance Project (Beijing-Taibei Expressway Jinan Transportation Management Center) Construction Contract, Safety Production | Public bidding | 1,765.42 | 1,765.42 |
| Contract and Integrity Contract | ||||||
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Controling subsidiaries of the parent company | Receive Labor service | Contract Agreement for SDHS 2020 Minor Repair and Maintenance Project (Linyi Transportation Management Center Section) | Public bidding | 1,099.13 | 1,099.13 |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Controling subsidiaries of the parent company | Receive Labor service | Contract of SDHS 2020 Minor Repair and Maintenance Project (Beijing-Shanghai Line Jinan Transportation Management Center) | Public bidding | 1,980.54 | 1,980.54 |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Controling subsidiaries of the parent company | Receive Labor service | SDHS 2020 Minor Repair and Maintenance Project (Weifang Transportation Management Center) Construction Contract, Safety Production Contract and Integrity Contract | Public bidding | 1,191.56 | 1,191.56 |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Controling subsidiaries 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 | 1,695.75 | 1,695.75 |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Controling subsidiaries of the parent company | Receive Labor service | SDHS 2020 Minor Repair and Maintenance Project (Yantai Transportation Management Center) Construction Contract, Safety Production Contract and Integrity Contract | Public bidding | 1,186.80 | 1,186.80 |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Controling subsidiaries 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 | 1,077.66 | 1,077.66 |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Controling subsidiaries 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 & | Controling subsidiaries | Receive Labor | SDHS 2020 Minor Repair and | Public bidding | 845.32 | 845.32 |
| Bridge Maintenance Co., Ltd. | of the parent company | service | Maintenance Project (Qingdao Transportation Management Center) Construction Contract and Safety Production Contract | |||
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Controling subsidiaries of the parent company | Receive Labor service | SDHS 2020 Minor Repair and Maintenance Project (Heze Transportation Management Center GSFZ He-Guan Section) (Contract Agreement) | Public bidding | 985.79 | 985.79 |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Controling subsidiaries of the parent company | Receive Labor service | Contract Agreement for SDHS 2020 Minor Repair and Maintenance Project (KG XU-YU Section) | Public bidding | 323.56 | 323.56 |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Controling subsidiaries of the parent company | Receive Labor service | Contract Agreement for SDHS 2019~2020 Minor Repair and Maintenance Project (KG JI-JIN Section) | Public bidding | 308.72 | 308.72 |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Controling subsidiaries of the parent company | Receive Labor service | Contract Agreement for SDHS 2020 Minor Repair and Maintenance Project (JTZ XU-BO Section) | Public Bidding | 907.92 | 907.92 |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Controling subsidiaries of the parent company | Receive Labor service | Contract Agreement for Maintenance and Reinforcement Project of K133+630 Fanjiashan Interchange Main Line Bridge of Heng-Shao Expressway | Public bidding | 977.09 | 977.09 |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Controling subsidiaries of the parent company | Receive Labor service | Minor Repair and Maintenance Contract | Public bidding | 576.59 | 576.59 |
| Shandong Provincial Communications Planning and Design Institute Group Co., Ltd. | Wholly owned subsidiary of the parent company | Receive Labor service | Two-stage Survey and Design Contract for Reconstruction and Expansion Project of Jinan-Tai'an Section of Beijing-Taibei Expressway | Public bidding | 5,445.30 | 5,445.30 |
| Shandong Provincial Communications Planning and Design Institute Group Co., Ltd. | Wholly owned subsidiary of the parent company | Receive Labor service | Contract for Preparation of Feasibility Study Report and Related Special Report of Reconstruction and | Public bidding | 737.00 | 737.00 |
| Expansion Project of Qihe-Jinan Section of Beijing-Taibei Expressway | ||||||
| Shandong Luqiao Group Co., Ltd. | Controling subsidiaries 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 | 48,556.69 | 48,556.69 |
| Shandong Luqiao Group Co., Ltd. | Controling subsidiaries of the parent company | Receive Labor service | Contract for Package I of Housing Construction of Dezhou (Shandong-Hebei Boundary)-Qihe Section Reconstruction and Expansion Project of Beijing-Taibei Expressway | Public bidding | 22,034.79 | 22,034.79 |
| Shandong Luqiao Group Co., Ltd. | Controling subsidiaries of the parent company | Receive Labor service | Supplementary Contract Agreement for Engineering and Construction of Special Maintenance Project of Shandong Expressway for 2019-2020 | Public bidding | 2,234.68 | 2,234.68 |
| Shandong Luqiao Group Co., Ltd. | Controling subsidiaries 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 Section | Public bidding | 3,990.87 | 3,990.87 |
| Shandong Luqiao Group Co., Ltd. | Controling subsidiaries 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 | 2,219.00 | 2,219.00 |
| Shandong Luqiao Group Co., Ltd. | Controling subsidiaries 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 (2020) | Public bidding | 5,215.15 | 5,215.15 |
| Shandong Luqiao Group Co., Ltd. | Controling subsidiaries of the parent company | Receive Labor service | Supplementary Additional Contract Agreement for Engineering and Construction of Special Maintenance Project (2020) of Shandong Expressway for 2019-2020 | Public bidding | 512.64 | 512.64 | |
| Total | / | / | 146,517.98 | ||||
| Details of large sales returns | None | ||||||
| Explanations of connected 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 | ||||||
| Overview of Events | Search Index |
| On June 14, 2020, upon deliberation and approval by the second extraordinary shareholders' meeting of the Company in 2020, it was agreed that the Company acquire 51% equity of Shandong Hi-Speed Rail Transit Group Co., Ltd. held by Shandong Hi-Speed Group Co., Ltd., the controlling shareholder of the Company, for RMB 3.487 billion. | See the Announcement (No. P.2020-023) of Shandong Hi-Speed Co., Ltd. on Acquisition of 51% Equity of Shandong Hi-Speed Rail Transit Group Co., Ltd. and Connection Transactions disclosed by the Company on the website of Shanghai Stock Exchange on May 29, 2020 for detail. |
2. Events disclosed in interim announcements with subsequent development or changes duringimplementation
√ Applicable □ Not applicable
On December 13, 2019, the 43rd meeting (interim) of the Fifth Board of Directors of the Company reviewedand approved the Proposal to Acquire 80% of Equity of Luzhou Southeast Expressway Development Co.,Ltd., and the meeting agreed that the Company, together with Sichuan Company, the wholly-ownedsubsidiary of Hi-Speed Group, acquired 100% of equity of Luzhou Company at the total acquisition price of
1.84 billion Yuan, where: the Company acquired 80% of equity at the acquisition price of 1.472 billion Yuan,and Sichuan Company acquired the remaining 20% at the acquisition price of 368 million Yuan. The detailedinformation is available in the Announcement of Shandong Hi-Speed on Acquisition of 80% of Equity ofLuzhou Southeast Expressway Development Co., Ltd. and Connected Transaction disclosed on December14, 2018 in the website of Shanghai Stock Exchange, with the announcement No. of Lin 2019-056. OnDecember 31, 2019, the Company signed Agreement on Transfer of Share of Luzhou Southeast ExpresswayDevelopment Co., Ltd. with Bosideng Co., Ltd., Shandong Kangbo Industrial Co., Ltd. and SDHS SichuanIndustrial Development Co., Ltd. with condition for entry-into-force. On January 13, 2021, Lu-Yu Companycompleted the registration of change with the industrial and commercial administration and was incorporatedin the consolidated statement of the Company, and had no impact on the Company's performance in 2020.
3. Matters not disclosed in interim announcements
□ Applicable √ Not applicable
(IV) Creditor's rights and debts between the Company and related parties
1. Events disclosed in interim announcements without subsequent development or changes duringimplementation
□ Applicable √ Not applicable
2. Events disclosed in interim announcements with subsequent development or changes duringimplementation
□ Applicable √ Not applicable
3. Matters not disclosed in interim announcements
□ Applicable √ Not applicable
(V) Other
□ Applicable √ Not applicable
XV. Material Contracts and Performance Thereof(I) Trusteeship, contracting and leasing
1.Trusteeship
√ Applicable □ Not applicable
During the reporting period, the custody of the Company has been disclosed in the "Connected TransactionsRelated to Daily Operations" Section.
2.Contracting
□ Applicable √ Not applicable
3.Rental
□ Applicable √ Not applicable
(II)Guarantees
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| External guarantees of the Company (excluding guarantees to subsidiaries) | ||||||||||||||
| Guarantor | Relation between guarantor and listed companies | Guaranteed Party | Guarantee Amount | Date of guarantee (date of agreement signing) | 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 guarantee is for affiliates | Affiliation Relationship | |
| Guarantee amount sum during the report period (excluding guarantee to subsidiaries) | ||||||||||||||
| Guarantee amount balance at the end of the report period (A) (excluding guarantee to subsidiaries) | ||||||||||||||
| Guarantee of the Company to its subsidiaries or its subsidiaries to other ones | ||||||||||||||
| Guarantee amount sum to subsidiaries during the reporting period | 752,000,000 | |||||||||||||
| Guarantee amount balance at the end of the report period (B) (excluding guarantee to subsidiaries) | 1,480,000,000 | |||||||||||||
| External guarantees of the Company (excluding guarantees to subsidiaries) | ||||||||||||||
| Total amount of security (A + B) | 1,480,000,000 | |||||||||||||
| Proportion of total amount of guarantee to the Company’s net assets (%) | 4.07 | |||||||||||||
| Including: | ||||||||||||||
| The amount of guarantee provided for shareholders, actual controllers and their affiliated parties (C) | 0 | |||||||||||||
| The amount of debt guarantee provided directly or indirectly for the guaranteed object with the ratio of liabilities to assets exceeding 70% (D) | 275,000,000 | |||||||||||||
| The amount of the total amount of guarantee exceeding 50% of the net assets (E) | 0 | |||||||||||||
| Total amount of the above three guarantee amounts (C + D + E) | 275,000,000 | |||||||||||||
| 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 reviewed and approved the Proposal 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 revenue 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 Tongda collective fund trust plan of Hwabao Trust, the limited partnership of Jinan Changying Jintai No. 2 Partnership (hereinafter referred to as "No. 22 Tongda"), with a total amount of not exceeding 6.75 billion yuan. The event has been reviewed and approved at shareholder's meeting of 2017 held on April 20, 2018. The detailed information is available in the Announcement on Establishing Limited Partnerships for Making up Balances disclosed on March 31, 2018 (Announcement No.: L 2018-012). As of December 31, 2020, the | |||||||||||||
have approved external guarantees with an accumulated amount of 8.576 billionYuan, where the Company and its subsidiaries have approved guarantees with anaccumulated amount of 1.480 billion Yuan to its subsidiaries, respectivelyaccounting for 23.63% and 4.08% of the latest audited net asset value of theCompany. During the reporting period, the actual amount of the Company’sexternal guarantees was zero (excluding the Company’s guarantees tosubsidiaries), and the amount of guarantees to subsidiaries was 752 million yuan.
(III) Entrusting others to manage cash assets
1. Entrusted financial management situation
(1) Overall situation of entrusted financial management
□ Applicable √ Not applicable
Other situations
□ Applicable √ Not applicable
(2) Individual entrusted financial management situation
□ Applicable √ Not applicable
Other situations
□ Applicable √ Not applicable
(3) Entrusted financial management impairment provision
□ Applicable √ Not applicable
2. Entrusted loan situation
(1) Overall situation of entrusted loans
□ Applicable √ Not applicable
Other situations
□ Applicable √ Not applicable
(2) Individual entrusted loan situation
□ Applicable √ Not applicable
Other situations
□ Applicable √ Not applicable
(3) Entrusted loan impairment provision
□ Applicable √ Not applicable
3. Other situations
□ Applicable √ Not applicable
(IV) Other major contracts
□ Applicable √ Not applicable
XVI. Explanations of Other Significant Events
□ Applicable √ Not applicable
XVII. Active Performance of Social Responsibilities(I) Poverty alleviation work of listed companies
√ Applicable □ Not applicable
1. Targeted poverty alleviation plans
√ Applicable □ Not applicable
According to the unified deployment of the central government and Shandong provincial Party committeeand the provincial government, the Company appointed “first secretary” to continue to carry out povertyalleviation work in Dali village, Yidukou, Lingcheng district, Dezhou city, as well as in Zhangzhuangadministrative village and Niulou administrative village in Wudian Town, Mudan District, Heze City. Theymade assistance 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 committees in
replenishing the basic-level Party organization force, perfecting the basic-level Party organization systems,and giving full play to the role as fighting bastions of the basic-level Party organizations in poverty alleviation.Second, they upheld the infrastructure construction. On the basis of soliciting opinions and suggestions fromvillagers, they researched and formulated rural construction plans by combining the higher-level governmentplanning to improve agricultural production and irrigation water conditions and create modern beautifulvillages, which laid a solid foundation for poverty alleviation.Third, they insisted on doing a good job in epidemic prevention and control. According to the situation, theynormalized epidemic prevention and control, and coordinated the work of epidemic prevention and controland economic development, to resolutely win the battle of poverty alleviation.Fourth, we continued to do a good job of caring for poor households and old party members. We visited andexpressed solicitude to them, and strengthened humanistic care, so as to continue to increase the cohesionand combat effectiveness of primary level Party organizations.
2. Summary of Annual Targeted Poverty Alleviation
√ Applicable □ Not applicable
In 2020, the Company appointed “first secretary” to focus on the following tasks in the village:
First, we give full play to the leading and guaranteeing role of Party building. In the forms of “three meetingsand one lesson”, the theme party day, etc., the Company organized the Party members working in villages todeeply study Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the spirits ofthe 19th National Congress of the Communist Party of China and the 3rd, 4th and 5th Plenary Sessions ofthe 19th Central Committee, to continuously improve the political accomplishment and comprehensivequality of Party members and cadres. Also, the Company insisted on educating them to apply what they havelearned to promote learning and transform scientific theories into the source of strength for decisive victoryin poverty alleviation.Second, they took targeted and differentiated measures to fight against poverty. In addition to the constructionof poverty alleviation workshops in Zhangzhuang village and Zhuniulou village, the “first secretary” alsoconstructed photovoltaic power generation projects in the villages to increase the village collective economicincome and the guarantee capability for poor households; the “first secretary” working in Zhangzhuangvillage set up college entrance examination reward fund and youth entrepreneurship fund to support villagers’entrepreneurship; the “first secretary” working in Niulou village actively supported the characteristicindustry-Yimao Flower and Agriculture Cooperative, and gave full play to the leading role of industrydemonstrations, which provided 7 jobs for poor households and reached an annual output value of more than
2.1 million Yuan, making the village a well-known “rose village”. By combining the pandemic preventionand control situation and resumption of work and production, the “first secretary” working in Dali villagecontinued to implement the farmland irrigation transformation and poverty alleviation project, whichimproved the irrigation conditions of the village and solved the difficulties in water supply and irrigation forthe villagers.Third, we comprehensively promoted the construction of beautiful villages. Based on the actual situation ofthe villages, the “first secretary” working in Zhangzhuang village and Niulou village applied for assistancefunds for dilapidated houses renovation for poor households, village cultural center renovation, village-levelparty building facilities improvement and village lighting and beautification projects, and deeply promotedthe “down to all households” project, which effectively improved the living environment of the villagers,enriched the cultural life of the residents and enhanced the happiness of the villagers.Fourth, we steadily carried out pandemic prevention and control work. When the coronavirus preventionmaterials were in short supply at the early stage of the coronavirus, the “first secretaries” working in eachvillage actively contacted the manufacturers to purchase disinfectant, and distributed it to villagers, especiallypoor villagers, for free. They also guide the villagers to disinfect courtyards and houses, and improvedvillage-level disinfection ability, so as to ensure the implementation of coronavirus prevention and controlwork.Fifth, we insisted on visit activities on major festivals. During the New Year’s Day, Spring Festival, and July1st, we visited the poor households, and delivered them daily necessities, which sent our care to the needypeople. The first secretary of Dali village sent clean and heart-warming coal to 22 families, which promptlysolved their “coal shortage”.
3. Targeted poverty alleviation achievements
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Index | Quantity and Progress |
| I. Overall Situation | |
| Where: 1. Funds | 122 |
| 2. Funds converted from materials | 0.468 |
| 3. Assistance in establishing archives for the impoverished population for getting rid of poverty (Persons) | 234 |
| II. Sub-project Investment | |
| 1. Poverty elimination by fostering industries | |
| Includes: 1.1 Types of industrial poverty alleviation projects | √Poverty alleviation in agriculture and forestry industry □Poverty alleviation through tourism □Poverty alleviation through E-commerce □Poverty alleviation through asset income □Poverty alleviation through technology √Others |
| 1.2 Number of industrial poverty alleviation projects(nos) | 3 |
| 1.3 Amount of investment in industrial poverty alleviation projects | 107.468 |
| 1.4 Assistance in establishing archives for the impoverished population for getting rid of poverty (Persons) | 234 |
| 2. Poverty elimination by transferring labor force | |
| Includes: 2.1 Amount of investment in vocational skills training | 10 |
| 2.2 Number of employment from poor households that are assisted in registering (person) | 7 |
| 3. Poverty elimination by strengthening education | |
| Includes: 3.1 Amount of funding for poor students | 5 |
| III. Award (Content and level) | |
| The “First Secretary” work team of Mudan District, Heze city appointed by Shandong Hi-Speed Co., Ltd. was awarded the National Advanced Group for Poverty Alleviation | |
4. Subsequent targeted poverty alleviation plans
√ Applicable □ Not applicable
The year of 2021 is the first year of the “14th Five-Year Plan” and also the 100th anniversary of the foundingof the Communist Party of China. The company will adhere to the guidance of Xi Jinping thought onsocialism with Chinese characteristics in the new era, and in accordance with the deployment requirementsof the central government, provincial and higher-level Party committees, take party building, policy guidance,industrial assistance, infrastructure transformation, normalized coronavirus prevention and control, andimprovement of the quality of rural human settlements into consideration when further increase efforts toassist rural revitalization, so as to continue to consolidate the results of poverty alleviation.(II) Social responsibility work
√ Applicable □ Not applicable
For details of the Company’s social responsibility work, please refer to the 2020 Social Responsibility Reportand Environmental, Social and Governance Report of Shandong H-speed Co., Ltd. disclosed on the ShanghaiStock Exchange website (www.sse.com.cn) on March 31, 2021.(III) Environmental information
1. Information about the environmental protection situation of companies and their important
subsidiaries that are key pollutant discharge units announced by the environmental protectiondepartment
√ 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 Co., Ltd. | Hanting District Sewage Treatment Plant | Chemical oxygen demand (COD) | Organized and continuous | Main water outlet | Class 1 Standard A≤50mg/L in Table 1, Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002) | None |
| Biochemical oxygen demand_5) | Organized and continuous | Main water outlet | Class 1 Standard A≤10mg/L in Table 1, Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002) | None | ||
| Suspended matter (SS) | Organized and continuous | Main water outlet | Class 1 Standard A≤10mg/L in Table 1, Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002) | None | ||
| Ammonia nitrogen (NHs-N) (calculated by N) | Organized and continuous | Main water outlet | Class 1 Standard A≤5mg/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 | Organized and | Main water outlet | Class 1 Standard A≤0.5mg/L in Table 1, Discharge Standard of | None |
| (P) | continuous | Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002) | ||
| Animal and vegetable oil | Organized and continuous | Main water outlet | Class 1 Standard A≤1mg/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≤1mg/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 69 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 Wastewater Treatment Plant (GB18918-2002) | None |
| 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 1.0mg/m3 in Table 4, Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002) | None |
| Sulfuretted hydrogen (Hzs) | Organized | Class 1 Standard 0.03mg/m3 in Table 4, Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002) | None | ||
| Odor concentration (Dimensionless) | Organized | Class 1 Standard 10mg/m3 in Table 4, Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002) | None | ||
| Methane (the highest volume concentration in the plant area is 0%) | Organized | Class 1 Standard 0.5mg/m3 in Table 4, Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002) | None |
be disposed in a “safe, stable, and up-to-standard” way by following the principles of “stabilization,harmlessness, reduction, resource utilization, and marketization” and the requirements of “green, recycling,and low-carbon”. In accordance with relevant laws, regulations and relevant provisions stipulated in SludgeTreatment Service Agreement for the Harmless Treatment of Sludge from Weifang Sewage Plant", theCompany signed a tripartite agreement with Weifang United Environmental Protection Technology Co., Ltd.and Weifang Hanting District Comprehensive Administrative Law Enforcement Bureau. According to theagreement, Weifang United Environmental Protection Technology Co., Ltd. is entrusted to provide high-quality, continuous, efficient and safe sludge treatment and disposal services; the ComprehensiveAdministrative Law Enforcement Bureau of Hanting District is responsible for corresponding supervisionand management.In 2020, Shandong Hi-Speed Environmental Protection Science and Technology Co., Ltd. disposed sludgesin a timely manner, meeting the requirements of the local environmental protection supervisory authorities.
(2) Construction and operation of pollution prevention and control facilities
√ Applicable □ Not applicable
a. Wastewater treatmentShandong Hi-Speed Environmental Protection Technology Co., Ltd. is mainly responsible for treatingmunicipal sewage of Hanting district. The current design treatment capacity is 25,000 m3/d. In 2020, theactual daily treatment capacity was 26,800 m3/d, and it covered a total area of 29.43 acres. Sewage treatmentprocess: municipal sewage pipe network—inlet well—coarse grid—sewage pump room—fine grid—cyclonegrit tank—distribution well—AAO tank—secondary sedimentation tan—high-density sedimentation tank—filter cloth filter tank—UV disinfection tank— Zhuohe River. The quality of effluent water complies withthe first class A standard of Discharge standard of pollutants for municipal wastewater treatment plant(GB18918-2002).b. Exhaust gas treatmentCentralized collection, treatment and emission techniques are adopted. Induced draft fans are used to collectexhaust gas in a centralized manner, and the collected exhaust gas is emitted after centralized treatment inbiological deodorization tower.Exhaust ga treatment facilities are in good operation condition, are qualified in corresponding detection, andmeet the emission requirements of Discharge Standard of Pollutants for Municipal Wastewater TreatmentPlant (GB18918-2002).
(3) Assessment of environmental influence from construction projects and other administrativelicensing for environmental protection
√ Applicable □ Not applicable
All in-progress and completed projects of Shandong Expressway Environmental Protection Technology Co.,Ltd. have implemented the “three simultaneous” work of environmental protection according to therequirements of relevant national laws and regulations. All projects have undergone environmental impactassessment as required and obtained approval from the environmental protection department. Meanwhile, theCompany has successfully applied for franchise license and pollutant discharge license according toregulations.Franchise license number: WZJSP (2019) Sewage No. 3001, valid from September 8, 2019 to September 7,2022.Pollutant discharge permit No.: 91370703680660976K001Y, valid from June 28, 2019 to June 27, 2022.
(4) Contingency plan for environmental emergencies
√ Applicable □ Not applicable
To establish and perfect the environmental pollution event contingency mechanism, effectively prevent andreduce environmental emergencies, carry out emergency disposal of environmental emergencies rapidly andscientifically, enhance the capacity for emergency management of abrupt environmental pollution accidentswhich involve public crisis, and prevent pollution from such environmental emergencies to publicenvironment, Shandong Hi-Speed Environmental Protection Science and Technology Co., Ltd., inaccordance with relevant national laws and regulations, by combining with its actual situations, and based onthe principles of "prevention first, uniform leadership, classified management and tiered response", hasprepared a corresponding contigency plan for environmental emergencies and filed to the local enviromentalprotection authority (Filing No.: 370703-2018-095-L).Shandong Hi-speed Environmental Protection Technology Co., Ltd. regularly carries out the training on the
emergency plan and evaluation of the training contents and methods. According to the requirements of theplan, Shandong Hi-speed Environmental Protection Technology Co., Ltd. shall organize emergency drill atleast once a year to improve the ability of the enterprise to deal with sudden environmental pollution accidentsand effectively prevent and control the occurrence of environmental pollution accidents.
(5) Environment self-monitoring scheme
√ Applicable □ Not applicable
Shandong Hi-Speed Environmental Protection Technology Co., Ltd. installed its own monitoring systemsuch as online monitoring to monitor wastewater discharge in real time; entrusted qualified environmentalinspection agencies to conduct monthly routine inspections on the quality of incoming and outgoing water;entrusted qualified environmental testing agencies to conduct quarterly inspections on wastewater and wastegas in the plant; formulated an annual self-monitoring plan and submited it to the Environmental ProtectionAgency for record; regularly filled in the self-inspection information entry system of national key monitoringenterprises, self-monitoring plan and annual report.
(6) Other environmental information that shall be disclosed
□ Applicable √ Not applicable
2. Information about the environmental protection situation of companies other than the keypollutant discharge units
□ Applicable √ Not applicable
3. Explanation of the reasons why companies other than key pollutant emission units did not disclose
environmental information
□ Applicable √ Not applicable
4. Explanation of the follow-up progress or changes in the environmental information contentdisclosed during the reporting period
□ Applicable √ Not applicable
(IV)Other explanations
□ Applicable √ Not applicable
XVIII Convertible corporate bonds
□ Applicable √ Not applicable
Chapter VI Changes in common shares and shareholders
I.Changes in ordinary share capital.(I) Table of changes in common shares
1.Changes in ordinary share capital.
Within the reporting period, there was no change in the total number of ordinary shares and the share capitalstructure of the company.
2.Changes in ordinary share capital.
□ Applicable √ Not applicable
3.Impact of changes in ordinary shares on financial indicators such as earnings per share and net assetsper share in the latest year and the latest period (if any)
□ Applicable √ Not applicable
4. Other content that the Company deems necessary or required by the securities regulatory agency todisclose
□ Applicable √ Not applicable
(II) Changes in restricted shares
□ Applicable √ Not applicable
II.Issuance and listing of securities.(I) Issuance of securities as of the Reporting Period
□ Applicable √ Not applicable
(II) Notes on the issuance of securities up to the reporting period (for bonds with different interestrates in the duration, please explain separately):
□ Applicable √ Not applicable
(III) Changes in total number of common shares and shareholder structure of the company andchanges in structure of assets and liabilities of the company
□ Applicable √ Not applicable
Existing staff-held shares □Applicable √NOT APPLICABLEIII.Condition of shareholders and actual controllers.(I) Total number of shareholders
| Total number of common shareholders at the end of the Reporting Period | 42,420 |
| Total number of common shareholders at the prior month-end before the disclosure date of the annual report | 43,273 |
| Total number of preferred shareholders whose voting rights have been restored as of the end of the reporting period (household) | 0 |
| Total number of preferred shareholders whose voting rights are restored at the end of the previous month before the disclosure date of the annual report | 0 |
Unit: shares
| Information of shares held by top ten shareholders | |||||||
| Shareholder Name (full name) | Increase/decrease during the Reporting Period | Number of shares held at the end of the period | (%) | Number of shares held with trading limited conditions | Pledge or freezing status | Property of shareholders | |
| Status of shares | Quantities | ||||||
| Shandong Hi-Speed Group Co., Ltd. | 0 | 2,870,656,188 | 59.67 | 0 | Pledged | 977,000,000 | State-owned legal person |
| China Merchants Expressway Network & Technology Holdings Co., Ltd. | 12,870,034 | 783,613,507 | 16.29 | 0 | None | Others | |
| Shandong Hi-Speed Group - China International Capital Corporation Limited – 17 SDHS EB guarantee and trust property specific account | 0 | 540,970,671 | 11.24 | 0 | None | Others | |
| Bosera Funds Management Co., Ltd. - social security fund 16,011 portfolio | 52,000,021 | 52,000,021 | 1.08 | 0 | None | Others | |
| National Social Security Fund 108 Portfolio | 47,121,609 | 47,121,609 | 0.98 | 0 | None | Others | |
| China Merchants Bank Co., Ltd. - Shanghai Stock Exchange dividend traded open-ended index securities investment fund | 17,830,200 | 27,435,800 | 0.57 | 0 | None | Others | |
| Bosera value growth securities investment fund | 23,337,002 | 23,337,002 | 0.49 | 0 | None | Others | |
| Hong Kong Securities Clearing Company Ltd. | -12,236,329 | 22,941,373 | 0.48 | 0 | None | Others | |
| Industrial and Commercial Bank of China – Bosera researched & selected one-year holding period flexible allocation hybrid securities investment fund | 21,300,000 | 21,300,000 | 0.44 | 0 | None | Others | |
| China Construction Bank Co., Ltd. – | 14,799,155 | 14,799,155 | 0.31 | 0 | None | Others | |
| Penghua value advantage hybrid securities investment fund (LOF) | ||||
| 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 | Quantities | |||
| 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 - China International Capital Corporation Limited – 17 SDHS EB guarantee and trust property specific account | 540,970,671 | Common stock (CNY) | 540,970,671 | |
| Bosera Funds Management Co., Ltd. - social security fund 16,011 portfolio | 52,000,021 | Common stock (CNY) | 52,000,021 | |
| National Social Security Fund 108 Portfolio | 47,121,609 | Common stock (CNY) | 47,121,609 | |
| China Merchants Bank Co., Ltd. - Shanghai Stock Exchange dividend traded open-ended index securities investment fund | 27,435,800 | Common stock (CNY) | 27,435,800 | |
| Bosera value growth securities investment fund | 23,337,002 | Common stock (CNY) | 23,337,002 | |
| Hong Kong Securities Clearing Company Ltd. | 22,941,373 | Common stock (CNY) | 22,941,373 | |
| Industrial and Commercial Bank of China – Bosera researched & selected one-year holding period flexible allocation hybrid securities investment fund | 21,300,000 | Common stock (CNY) | 21,300,000 | |
| China Construction Bank Co., Ltd. – Penghua value advantage hybrid securities investment fund (LOF) | 14,799,155 | Common stock (CNY) | 14,799,155 | |
| 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 shares held | None | |||
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 becoming the top 10 shareholders due to placing ofnew shares
□ Applicable √ Not applicable
IV. Controlling shareholders and actual controllers.(I) Information of controlling shareholders1 Legal persons
√ Applicable □ Not applicable
| Name | Shandong Hi-Speed Group Co., Ltd. |
| Person in charge or legal representative | Zou Qingzhong |
| Date of establishment | July 2, 1997 |
| Main business | Construction, management, maintenance, operation, development, and toll collection of expressways, bridges, railways, ports and airports; comprehensive development, management, logistics and related supporting services of supporting resources along highways, bridges, and railways; investment in the financial industry and asset management (approved by relevant departments); design, consulting, scientific research, and construction of civil engineering and communication engineering; sales of building materials; leasing of machinery and equipment; advertising business. General business items: automotive towing, rescue and obstacle clearing services; tendering and bidding agency services; leasing of land use right; non-residential real estate leasing; mechanical equipment leasing; parking lot services; manufacturing of new building materials (excluding hazardous chemicals); research and development of emerging energy technologies; and application system integration services for artificial intelligence industry (except for the items that are subject to approval according to law, and the business activities shall be independently carried out according to law with business licenses). Licensed business items: highway management and maintenance; construction project supervision; general aviation services; and various engineering construction activities (for the items that are subject to approval according to law, the business activities can only be carried out after approval by relevant departments. And the specific business items shall be subject to the examination and approval re0sult). |
| Equity of other domestic and foreign listed holding and participating companies in the report period | As of the end of this Reporting Period, Shandong Hi-Speed Group Co., Ltd. holds 55.82% equity of Shandong Luqiao (000498.SZ), 43.42% of China Shandong Hi-Speed Financial Group (00412.HK), 44.12% of Qilu Expressway (1576.HK), 4.53% of Bohai Ferry (603167.SH) and 48.67% of Weihai Bank (9677.HK). |
| Other situations | None |
√ Applicable □ Not applicable
(II) Information of actual controller1 Legal persons
□ Applicable √ Not applicable
The State Owned Assets Supervision and Administration Committee of Shandong People's Government,Shandong Guohui Investment Co., Ltd. and Shandong Social Security Fund Council respectively hold 70%,20% and 10% shares of Shandong Hi-speed Group Co., Ltd. Meanwhile, the State Owned Assets Supervisionand Administration Committee of Shandong People's Government also holds 100% shares of ShandongGuohui Investment Co., Ltd.2 Natural person
□ Applicable √ Not applicable
3 The Company does not have a special statement of the actual controller
□ Applicable √ Not applicable
4 Index and date of changes of actual controller during the Reporting Period
□ Applicable √ Not applicable
5 Block diagram of the ownership and control relationship between the Company and the actual
controller
√ Applicable □ Not applicable
6 The actual controller controls the Company through a trust or other asset management methods
□ Applicable √ Not applicable
(III) Other information about the controlling shareholder and actual controller
□ Applicable √ Not applicable
Shandong Hi-Speed Group Co., Ltd.Shandong High-speed
Co., Ltd
Shandong High-speed
Co., Ltd
State-owned assets supervision and administration commission
of the people's government of Shandong Province
State-owned assets supervision and administration commission
of the people's government of Shandong ProvinceShandong High-speed Co., Ltd
Shandong High-speed Co., LtdShandong Social Security Fund Council
| Shandong Social Security Fund Council | Shandong Guohui Investment Co., Ltd |
V.Other legal person shareholders with more than 10% shares.
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Name of legal person shareholder | Person in charge or legal representative | Date of establishment | Organization code | Registered capital | Main business or management activities, etc |
| China Merchants Expressway Network & Technology Holdings Co., Ltd. | Wang Xiufeng | 12/18/1993 | 91110000101717000C | 6,178,217,338 | Investment, development, construction and operating management of infrastructures of highways, bridges, wharfs, ports and waterways; investment management; development and research of new technologies, new products and new materials for transportation infrastructure, as well as sales of products; sales of building materials, mechanical and electrical equipment, automobiles and accessories, hardware & electric materials, daily necessities; economic information consultation; and talent training. (Business requiring government approval according to law can only be carried out when such approval from relevant department is obtained) |
| Explanations | None | ||||
Chapter VII Preference shares
□ Applicable √ Not applicable
Chapter VIII Information about Directors, Supervisors, Senior Management and EmployeesI. Changes in shareholding and remuneration.(I) Changes in shareholding and remuneration of current and outgoing directors, supervisors and senior management at the Reporting Period
√ Applicable □ Not applicable
Unit: shares
| Name | Position (Note) | Gender | Age | Start date of the service term | End of term | Number of shares held at the beginning of the year | Number of shares held at the end of the year | Shares increased or decreased during the year | Reasons for increase or decrease | Total pretax remuneration received from the company in the reporting period (10,000 yuan) | Is there any remuneration from related parties of the company? |
| Sai Zhiyi | Chairman | Male | 51 | May 11, 2020 | May 10, 2023 | 0 | 0 | 0 | - | 0.00 | Yes |
| Han Daojun | Deputy Director | Male | 58 | May 11, 2020 | May 10, 2023 | 0 | 0 | 0 | 10.00 | Yes | |
| Lv Sizhong | Vice chairman and general manager | Male | 56 | May 11, 2020 | May 10, 2023 | 0 | 0 | 0 | 98.53 | No | |
| Zhang Xiaobing | Director | Female | 51 | May 11, 2020 | May 10, 2023 | 0 | 0 | 0 | 77.22 | No | |
| Meng Jie | Director | Male | 43 | May 11, 2020 | May 10, 2023 | 0 | 0 | 0 | 10.00 | Yes | |
| Liang Zhanhai | Director | Male | 53 | May 11, 2020 | May 10, 2023 | 0 | 0 | 0 | 0.00 | Yes | |
| Sui Rongchang | Directors and secretary of board of directors | Male | 46 | May 11, 2020 | May 10, 2023 | 0 | 0 | 0 | 76.54 | No | |
| Fan Yuejin | Independent Director | Male | 62 | May 11, 2020 | May 10, 2023 | 0 | 0 | 0 | 10.00 | No | |
| Liu Jianwen | Independent Director | Male | 61 | May 11, 2020 | May 10, 2023 | 0 | 0 | 0 | 10.00 | No | |
| Wei Jian | Independent Director | Male | 52 | May 11, 2020 | May 10, 2023 | 0 | 0 | 0 | 10.00 | No | |
| Wang Hui | Independent Director | Male | 50 | May 11, 2020 | May 10, 2023 | 0 | 0 | 0 | 10.00 | No |
| Yin Jijun | Chairman of the board of supervisors | Male | 55 | January 22, 2021 | May 10, 2023 | 0 | 0 | 0 | 84.26 | No | |
| Yin Jijun | Supervisor | Male | 55 | May 11, 2020 | May 10, 2023 | 0 | 0 | 0 | 0.00 | No | |
| Liu Jingwei | Supervisor | Male | 30 | May 11, 2020 | May 10, 2023 | 0 | 0 | 0 | 10.00 | Yes | |
| Lin Leqing | Supervisor | Male | 57 | May 11, 2020 | May 10, 2023 | 0 | 0 | 0 | 10.00 | No | |
| Chen Fang | Employee Supervisor | Female | 39 | March 4, 2020 | May 10, 2023 | 0 | 0 | 0 | 54.73 | No | |
| Zhu Yuqiang | Employee Supervisor | Male | 42 | March 4, 2020 | May 10, 2023 | 0 | 0 | 0 | 27.68 | No | |
| Zhang Jun | Deputy General Manager | Male | 48 | May 11, 2020 | May 10, 2023 | 0 | 0 | 0 | 77.43 | No | |
| Kang Jian | Deputy General Manager | Male | 51 | May 11, 2020 | May 10, 2023 | 0 | 0 | 0 | 66.29 | No | |
| Chang Zhihong | Deputy General Manager | Male | 46 | May 11, 2020 | May 10, 2023 | 0 | 0 | 0 | 69.03 | No | |
| Hou Fujin | Deputy General Manager | Male | 47 | May 11, 2020 | May 10, 2023 | 0 | 0 | 0 | 32.32 | No | |
| Sun Jiarong | Chief engineer | Male | 57 | May 11, 2020 | May 10, 2023 | 0 | 0 | 0 | 81.23 | No | |
| Zhou Liang | Chief accountant | Male | 49 | May 11, 2020 | May 10, 2023 | 0 | 0 | 0 | 72.85 | No | |
| Li Hang | Director | Male | 50 | December 26, 2016 | May 11, 2020 | 0 | 0 | 0 | 0.00 | Yes | |
| Yin Jijun | Director | Male | 55 | December 26, 2016 | May 11, 2020 | 0 | 0 | 0 | 0.00 | No | |
| Wei Shirong | Independent Director | Male | 56 | December 26, 2016 | May 11, 2020 | 0 | 0 | 0 | 0.00 | No | |
| Wang Feng | Independent Director | Female | 47 | December 26, 2016 | May 11, 2020 | 0 | 0 | 0 | 0.00 | No | |
| Luo Chuliang | Chairman of the board of supervisors | Male | 58 | December 26, 2016 | May 11, 2020 | 0 | 0 | 0 | 94.58 | No | |
| Sun Xu | Supervisor | Male | 34 | December 26, 2016 | May 11, 2020 | 0 | 0 | 0 | 0.00 | Yes |
| Zhang Yiren | Employee Supervisor | Male | 61 | December 26, 2016 | March 4, 2020 | 0 | 0 | 0 | 24.80 | No | |
| Wang Xiaolei | Employee Supervisor | Female | 41 | December 26, 2016 | March 4, 2020 | 0 | 0 | 0 | 73.13 | No | |
| Sun Jiarong | Deputy General Manager | Male | 57 | December 26, 2016 | April 1, 2020 | 0 | 0 | 0 | 0.00 | No | |
| Zhang Xiaobing | Deputy General Manager | Female | 51 | December 26, 2016 | April 2, 2020 | 0 | 0 | 0 | 0.00 | No | |
| Total | / | / | / | / | / | 0 | 0 | 0 | / | 1,090.62 | / |
| Name | Main working experiences |
| Sai Zhiyi | From February 1996 to October 2009, he successively served as deputy section level cadre of Weihai Branch of Industrial and Commercial Bank of China, director of Credit Department of Weihai Cooperative Bank, President of Shidao branch of Weihai Commercial Bank, President of Shuntong branch of Weihai Commercial Bank, Vice President of Weihai Commercial Bank, Party committee member and President of Jinan Branch; from October 2009 to may 2011, he served as the General Manager of Shandong Re-guarantee Group Co., Ltd; Vice Director, President and Deputy Secretary of the Party Committee of Weihai Commercial Bank from May 2011 to June 2017; Vice Director, General Manager and Deputy Secretary of CPC of the 5th board of directors of the company from June 2017 to July 2018; member of the Party Committee and Deputy General Manager of Shandong Hi-speed Group Co., Ltd. from September 2017 to July 2020; Executive Director of Shandong Hi-speed Group Co., Ltd. from July 2020 to the end of this report period; Director (legal representative) of the 5th and 6th board of directors and Secretary of the Party Committee from August 2018 to the end of this report period. |
| Han Daojun | From March 2010 to October 2016, he served as the General Manager and member of the Party Committee of Chongqing Communications Research and Design Institute Co., Ltd. of China Merchants. From August 2016 to September 2020, he served as Executive Deputy General Manager of China Merchants Expressway Network & Technology Holdings Co., Ltd., and from September 2020 to the end of this report period, he served as Senior Consultant of China Merchants Expressway Network & Technology Holdings Co., Ltd. He also served as Vice President of Guangxi Wuzhou Communications Co., Ltd. and Chongqing Chengyu Expressway Co., Ltd., Director of China Merchants Chongqing Communications Technology Research & Design Institute Co., Ltd., China Merchants Communications Information Technology Co., Ltd. and China Merchants Xinzhi Technology Co., Ltd., Executive Director and Deputy Secretary General of China Highway & Transportation Society; from December 2016 to the end of this report period, he served as Vice President of the 5th and 6th Board of Directors of the Company. |
| Lv Sizhong | From January 2002 to December 2005, he served as Director of Development Department of Shandong Expressway Co., Ltd.; from December 2005 to February 2012, he successively served as Vice President, General Manager, Deputy Secretary of CPC and Executive Director (legal representative) of Sichuan Leyi Highway Co., Ltd. of Shandong Hi-speed Group; from February 2012 to December 2012, he served as Secretary of Party Committee, Director and Deputy General Manager of Shandong Hi-speed Road&Bridge Group Co., Ltd.; from December 2012 to July 2018, he served as Secretary of Party Committee and Chairman of the Board of Supervisors of Shandong Hi-speed Road&Bridge Group Co., Ltd. From September 2017 to July 2020, he served as a member of the Party Committee of Shandong Hi-speed Group Co., Ltd.; from August 2018 to the end of this report period, he also served as the Director of the Construction Management Office of the reconstruction and expansion project of Jinan-Qingdao Expressway. From August 2018 to the end of this report period, he served as the Vice Director, General Manager and Deputy Secretary of the Party Committee of the 5th and 6th Board of Directors |
| of the Company. | |
| Zhang Xiaobing | From May 2002 to December 2006, he successively served as the Chief of Human Resources Section (Political Engineering Section) of Qingzhou Management Office of Shandong Infrastructure Construction Co., Ltd., Deputy Director of Management Office and member of General Party Branch; from December 2006 to February 2012, he successively served as Deputy Director of Qingzhou Management Office of Shandong Expressway Co., Ltd., Secretary of General Party Branch and Chairman of Trade Union of Weifang Branch, and General Party Branch Secretary, Chairman of Trade Union and Secretary of the Party Committee of Jinan Branch; from February 2012 to July 2014, he served as the General Manager and Deputy Secretary of the Party Committee of Jingtai Branch of Shandong Expressway Operation Management Co., Ltd.; from July 2014 to April 2020, he served as the member and Deputy General Manager of the Party Committee of Shandong Expressway Co., Ltd.; from January 2018 to September 2018, he also served as General Manager of Operation Division of Shandong Hi-s[eed Co., Ltd.; from May 2020 to the end of this report period, he served as the Director and Deputy Secretary of the Party Committee of the 6th Board of Directors of the Company. |
| Meng Jie | From October 2009 to November 2013, he served as the General Manager of Equity Management Department I of China Merchants Huajian Highway Investment Co., Ltd.; from November 2013 to January 2015, he served as the Deputy General Manager of Enterprise Management Department of China Merchants Huajian Highway Investment Co., Ltd.; from February 2015 to January 2016, he served as the Chief Analyst of China Merchants Huajian Highway Investment Co., Ltd.; from February 2016 to August 2016, served as the Chief Analyst of China Merchants Huajian Highway Investment Co., Ltd and General Manager of Capital Operation Department. From August 2016 to the end of this report, he served as the Chief Analyst and General Manager of Capital Operation Department (the Board Office) of China Merchants Expressway Network & Technology Holdings Co., Ltd. He also served as the Director of Henan Zhongyuan Expressway Co., Ltd., Heilongjiang Transportation Development Co., Ltd., Hyundai Investment Co., Ltd., Jiangsu Ningjingyan Expressway Co., Ltd.; from May 2016 to the end of this report period, he successively served as the director of the 4th and 5th and 6th Board of Directors of the Company. |
| Liang Zhanhai | From December 2002 to April 2004, he successively served as an employee and Senior Manager of Shandong Qilu Certified Public Accountants; from April 2004 to November 2007, he successively served as the employee and Manager of Financial Department of Shandong China Fluoro Chemical Technology Co., Ltd.; from November 2007 to January 2011, he served as the Director of Financial Audit Department of Shandong Local Railway Bureau; from January 2011 to the end of this report period, he successively served as the Deputy Director and Minister of Planning and Finance Department of Shandong Expressway Group Co., Ltd. as well as the Director of Shandong Hi-speed Basketball Club Co., Ltd., Chairman of the Board of Supervisors of Shandong Railway Development Fund Co., Ltd., member of the Party Committee and Chief Accountant of of Lunan High-speed Railway Co., Ltd., Director of Shandong Hi-speed Group (Hong Kong) Co., Ltd. and Non-executive Director of China Shandong Hi-speed Financial Group Limited; from May 2020 to the end of this report period, he served as the Director of the 6th Board of Directors of the Company. |
| Sui Rongchang | From February 2007 to December 2007, he served as the Deputy Director of Jinan Yellow River Bridge Management Office and member of the General Party Branch of Shandong Expressway Co., Ltd.; from December 2007 to February 2012, he successively served as the Deputy Manager, member of the General Party Branch and member of the Party Committee of Jiqing South Line Branch Company; from February 2012 to July 2014, he served as the Deputy General Manager, member of the General Party Branch and Secretary of the Commission for Discipline Inspection of Jinan Shengbang Real Estate Co., Ltd; From July 2014 to October 2019, he served as the Office Director of the company. From December 2018 to the end of this report period, he served as the Secretary of the 5th and 6th Board of Directors of the Company; from May 2020 to the end of this report period, he served as the Director of the 6th Board of Directors of the Company. |
| Fan Yuejin | He is currently the Consultant of Qingdao University and the Honorary President of the Qingdao University Council; former Secretary of the Party Committee and President of Qingdao University as well as the Vice President of the China Society of Emerging Economies, the Honorary President of the Shandong Society of World Economics, and the President of Shandong Higher Education Management Science Research Association; from May 2020 to |
| the end of this report period, he served as an independent director of the 6th Board of Directors of the Company. | |
| Liu Jianwen | From July 1986 to December 1999, he successively served as teaching assistant, lecturer, associate professor, professor and doctoral supervisor of civil and commercial law in Law School of Wuhan University; from July 1999 to now, he served as professor of Law School of Peking University and doctoral supervisor of economic law major; a distinguished professor of Liaoning University and a distinguished professor of "Cheung Kong Scholars Programme" of Ministry of Education; from December 2016 to the end of this report period, he served as an independent director of the 5th and 6th Board of Directors of the Company. |
| Wei Jian | From August 2001 to August 2003, he was engaged in postdoctoral research in postdoctoral workstation of Guangfa Securities Co., Ltd. From July 2002 to January 2020, he worked in the Economic Research Institute of Shandong University; from July 2006 to July 2007, he visited the Law School of the University of Illinois for one year; from January 2020 to now, he worked in the Zhongtai Securities and Finance Research Institute of Shandong University. He is now the chief editor of Journal of Shandong University (Philosophy Society Edition), professor and doctoral supervisor of Zhongtai Securities and Finance Research Institute of Shandong University, New Century Excellent Talents of the Ministry of Education and special allowance expert of the State Council; from April 2019 to the end of this report period, he served as an independent director of the 5th and 6th Board of Directors of the Company. |
| Wang Hui | From January 1994 to April 2013, he served as the chairman of Shandong Huide Certified Public Accountants Co., Ltd. and Manager of CroweHorwath from January 2001 to December 2001; from April 2013 to now, he was the chief partner of Hexin Certified Public Accountants LLP; now he is the vice president of Shandong Institute of Certified Public Accountants and member of professional Steering Committee of China Institute of Certified Public Accountants; from May 2020 to the end of this report period, he served as an independent director of the 6th Board of Directors of the Company. |
| Yin Jijun | From July 2001 to April 2013, he successively served as the Deputy Director and Director of the Finance Department of the Highway Bureau of Shandong Provincial Department of Communications; from June 2013 to May 2020, he served as the Director, Deputy General Manager and member of the Party Committee of the 4th and 5th board of directors of the company; from June 2013 to August 2019, he served as the Chief Accountant of the Company; from March 2014 to March 2018, he also served as the Director of Shandong Environmental Protection Industry Co., Ltd.; from May 2014 to July 2018, he also served as director (legal representative) of Shandong Lijin Yellow River Road and Bridge Co., Ltd.; Director of Weihai Commercial Bank Co., Ltd. from November 2014 to the end of this report period; Director (legal representative) of Shandong Hi-speed Changying Equity Investment Management Co., Ltd. from September 2017 to March 2019; from May 2020 to January 2021, he was the supervisor and member of the Party Committee of the 6th Board of Supervisors of the Company; from January 2021 to now, he was the chairman and member of the Party Committee of the 6th Board of Supervisors of the Company. |
| Liu Jingwei | From March 2018 to the end of this report period, he served as the Manager of Capital Operation Department (Office of the Board of Directors) of China Merchants Expressway Network & Technology Holdings Co., Ltd. He also served as the supervisor of Henan Zhongyuan Expressway Co., Ltd. and Xiandai Touzi Co., Ltd.; from May 2020 to the end of this report period, he served as the supervisor of the 6th Board of Supervisors of the Company. |
| Lin Leqing | At present, he is a certified public accountant of Shandong Branch of Reanda Certified Public Accountants LLP. He once served as Director of Shandong Audit Office, Director of Shandong Provincial Audit Office, General Manager of Shandong Zhengyuan Hexin Certified Public Accountants. From April 2006 to December 2016, he was an independent director of the 3rd and 4th Board of Directors of the Company; from November 2008 to June 2016, he was an independent director of Zhonglei Certified Public Accountants Co., Ltd.; From December 2016 to the end of this report period, he served as the Supervisor of the 5th and 6th Board of Supervisors of the Company. |
| Chen Fang | From November 2007 to December 2019, he successively served as the staff and Deputy Manager of the Planning and Finance Department of the Company; from December 2019 to the end of this report period, he served as the Director of the Planning and Finance Department (Asset Management Office) of the Company; from March 2020 to the end of this report period, he was the employee supervisor of the 5th and 6th Board of Supervisors of the Company. |
| Zhu Yuqiang | From January 2008 to August 2011, he served as the Deputy Section Chief of the Toll Section of Jinan Branch of Shandong Hi-speed Group (Jingfu Jinan Branch); from August 2011 to August 2013, he successively served as the first Deputy Station Chief, Deputy Party Branch Secretary and Deputy Station Chief of the over-bridge toll station of Jinan Branch of Shandong Hi-speed Group; from August 2013 to August 2014, he served as the Party Branch Secretary and Station Chief of the over-bridge toll station of the Company's Jitai Branch; from August 2014 to August 2014, he was appointed as the first Deputy Station Chief, Deputy Party Branch Secretary and Deputy Station Chief of the over-bridge toll station of Jinan Branch of Shandong Hi-speed Group; from August 2014 to May 2016, he served as the Party Branch Secretary and Station Chief of over-bridge station of the Company's Jitai branch; from January 2018 to the end of this report period, he successively served as the Head of the Party Labor Force Section, member of the Party Committee, and Vice Chairman of the Trade Union of the Company's Jingtai Jinan Transportation Management Center; from March 2020 to the end of this report period, he served as the employee supervisor of the 5th and 6th Board of Supervisors of the Company. |
| Zhang Jun | He successively served as member of the Party Committee from July 2008 to December 2017; the deputy secretary of the Party Committee, Director, Deputy General Manager and Executive Deputy General Manager of Shandong Hi-speed Information Engineering Co., Ltd.; as member of the Party Committee, Secretary of the Discipline Inspection Commission and Chairman of the labor union of the company from December 2017 to December 2018; as the Deputy General Manager and member of the Party Committee of the company from December 2018 to the end of the reporting period. |
| Kang Jian | From October 2012 to June 2013, he served as Vice President (presided over the work) of Jinan Management Department of Jinan Branch of Industrial Bank; from June 2013 to April 2019, he served as member of the Party Committee and Vice President of Jinan Branch of Ping An Bank; from May 2019 to the end of this report period, he served as member of the Party Committee and Deputy General Manager of the Company. |
| Chang Zhihong | From February 2012 to September 2018, he served as Deputy Director of the Party Committee Working Department, Deputy Director of the Supervision Office and Secretary of the Youth League Committee of Shandong Hi-speed Group Co., Ltd.; from September 2018 to March 2019, he served as the Deputy Director of the Party Committee Organization Department and Secretary of the Youth League Committee of Shandong Hi-speed Group Co., Ltd.; from April 2019 to the end of this reporting period, he served as the member of the Party committee and Deputy General Manager of the company. |
| Hou Fujin | He once served as member of the Party Committee and Deputy General Manager of Shandong Hi-speed Construction Management Group Co., Ltd.; Chairman (legal representative) and General Manager of Shandong Hi-speed Jitai (LAI) Intercity Highway Company; Director and Party Branch Secretary of Construction Management Office of Tai'an-Zaozhuang reconstruction and expansion project of Jingtai Highway of Shandong Hi-speed Group Co., Ltd.; from May 2020 to the end of this report period, he served as Deputy General Manager and member of the Party Committee of the Company. |
| Sun Jiarong | From February 2000 to December 2006, he successively served as the principal and Manager of the Maintenance and Infrastructure Department of the company; from December 2006 to the end of this report period, he served as the Chief Engineer of the company; from July 2008 to the end of this report period, he served as the member of the Party committee of the Company; from March 2015 to the end of this report period, he also served as the Executive Deputy Director of the Construction Management Office of the reconstruction and expansion project of Jiqing Expressway; from February 2018 to the end of this report period, he also served as the director of the Management Office of reconstruction and expansion project of Deqi section of Jingtai Expressway. From February 2016 to May 2020, he served as the Company's Deputy General Manager; from May 2020 to the end of this report period, he served as the Company's Chief Engineer and member of the Party Committee. |
| Zhou Liang | From August 2009 to June 2013, he served as Deputy Manager of Planning and Finance Department of Shandong Hi-speed Co., Ltd., from June 2013 to March 2014, he served as the Manager of Audit Department of Shandong Hi-speed Co., Ltd., from March 2014 to June 2016, he served as the Chief Financial Officer and Manager of Finance Department of Shandong Hi-speed Optical Control Industry Fund Management Co., Ltd.,; from June 2016 to August 2019, he served as the Deputy Chief Accountant and Manager of Planning and Finance Department of Shandong Hi-speed Co., Ltd.; from June 2018 to the end of this report period, he concurrently served as the Director of Shandong Expressway Development Co., Ltd.; from April 2019 to the end of this report period, he concurrently served as the Director of Dongxing Securities Co., Ltd.; from March 2020 to the end of this report period, he |
| concurrently served as the Director of Shandong Hi-speed Changying Equity Investment Management Co., Ltd.; from April 2020 to the end of this report period, he concurrently served as the Director of Shandong Hi-speed Speed Chain Cloud Technology Co., Ltd.; since January 2021, he has also served as the Director of Shandong Hi-speed Property Service Development Group Co., Ltd.; from August 2019 to the end of this report period, he served as member of the Party Committee and Chief Accountant of the Company. | |
| Li Hang | From December 2007 to the end of this report period, he successively served as the Deputy Director of the Finance Department, Director, Chief Accountant, Standing Committee Member of the Party Committee, Director and Deputy General Manager of Shandong Hi-speed Group Co., Ltd.; from December 2007 to the end of this report period, he concurrently served as the Director of Weihai Commercial Bank Co., Ltd.; from October 2016 to April 2019, he concurrently served as the Chairman of the board of Directors and Secretary of the Party Committee of China Shandong Hi-speed Financial Group Co., Ltd.; from April 2006 to May 2020, he successively served as the 3rd, 4th and 5th Board Director of the Company. |
| Wei Shirong | At present, he is served as the senior partner of Beijing Dacheng Law Firm, leader of Global and China transportation and infrastructure industry Group of Dacheng DENTONS International Law Firm, member of Capital Market Professional Committee and Financial Professional Committee of Dacheng Law Firm, legal expert of PPP Expert Bank of National Development and Reform Commission, part-time professor of Shandong University for political science and laws, and the independent director of the 5th and 6th Board of Directors from December 2016 to May 202. |
| Wang Feng | He is currently a partner of Union Power Certified Public Accountants (LLP); he is also a member of the Professional Technology and Continuing Education Committee of Beijign Institute of Certified Public Accountants; from December 2016 to May 2020, he served as an independent director of the 5th Board of Directors of the Company. |
| Luo Chuliang | From November 1999 to December 2006, he served as the Director and Deputy General Manager of the company; from December 2006 to February 2012, he served as the Director, Executive Deputy General Manager and member of the Party committee; from February 2012 to March 2013, he served as the Secretary of the Party Committee and Deputy General Manager of Shandong Hi-speed Investment Holding Co., Ltd.; from March 2013 to February 2015, he served as the General Manager (legal representative) and Deputy Secretary of the Party Committee of Shandong Hi-speed Investment Holding Co., Ltd. From February 2015 to May 2020, he served as a member of the Party Committee of the Company and the Chairman of the 4th and 5th Board of Supervisors. |
| Sun Xu | From July 2009 to April 2012, he successively served as cashier of Finance Department and Project Manager of Investment Department of North China Expressway Co., Ltd. Toll Branch; from May 2012 to June 2018, he successively served as the Project Manager of Equity Management Department II, the Project Manager of Enterprise Management Department and the Project Manager of Capital Operation Department of China Merchants Huajian Highway Investment Co., Ltd.; from July 2018 to October 2019, he served as the Senior Manager of Capital Operation Department (Board Office) of China Merchants Expressway Network & Technology Holdings Co., Ltd.; from November 2019 to the end of this report period, he served as the Financial Director and Financial Manager of Tibet China Merchants Communications and Construction Electronic Information Co., Ltd.; from November 2014 to May 2020, he successively served as the 4th and 5th Board of Supervisors of the Company. |
| Zhang Yiren | From April 2006 to May 202, he served as the employee supervisor of the 3rd, 4th and 5th Board of Supervisors of the Company; from November 2007 to December 2017, he served as the Chairman of the labor union and member of the Party Committee of the Company; from February 2015 to December 2017, he served as the Chairman of the Board of Supervisors and member of the Party Committee of Shandong Hi-speed Basketball Club Co., Ltd. |
| Wang Xiaolei | From April 2014 to the end of this report period, he successively served as Deputy Chief Accountant, Manager of Audit Department and Chief Auditor of Shandong Hi-speed Co., Ltd.; from May 2014 to May 2016, he concurrently served as Manager of Financial Department of Shandong Hi-speed Operation Management Co., Ltd.; from May 2014 to December 2018, he concurrently served as Supervisor and Chief Supervisor of Shandong Environmental Protection Industry Co., Ltd.; from May 2014 to the end of this report period, he successively served as Deputy Chief Accountant, Manager of Audit Department and Chief Auditor of Shandong Hi-speed Shandong Lijin Yellow River Highway Bridge Co., Ltd.; from December 2016 to may 2020, he |
served as the employee supervisor of the 5th Board of Supervisors of the Company; from December 2018 to the end of this report period, he also served asthe Supervisor of Hubei Wujing Freeway Development Co., Ltd.
Other situations
□ Applicable √ Not applicable
(II) Equity incentive granted to directors and senior managers during the report period.
√ Applicable □ Not applicable
Unit: ten thousand share
| Name | Title | Number of stock options held at the beginning of the year | Number of new stock options granted during the reporting period | Exercisable shares during the reporting period | Stock option exercise shares during the reporting period | Stock option exercise price (RMB) | Number of stock options held at the end of the period | Market price at the end of the reporting period (RMB) |
| Sai Zhiyi | Chairman | 0 | 74 | 0 | 0 | - | 0 | 0 |
| Lv Sizhong | Vice chairman and general manager | 0 | 74 | 0 | 0 | - | 0 | 0 |
| Zhang Xiaobing | Director | 0 | 59 | 0 | 0 | - | 0 | 0 |
| Sui Rongchang | Directors and secretary of board of directors | 0 | 59 | 0 | 0 | - | 0 | 0 |
| Zhang Jun | Deputy General Manager | 0 | 59 | 0 | 0 | - | 0 | 0 |
| Kang Jian | Deputy General Manager | 0 | 59 | 0 | 0 | - | 0 | 0 |
| Chang Zhihong | Deputy General Manager | 0 | 59 | 0 | 0 | - | 0 | 0 |
| Hou Fujin | Deputy General Manager | 0 | 59 | 0 | 0 | - | 0 | 0 |
| Sun Jiarong | Chief engineer | 0 | 59 | 0 | 0 | - | 0 | 0 |
| Zhou Liang | Chief accountant | 0 | 59 | 0 | 0 | - | 0 | 0 |
| Total | / | 0 | 620 | 0 | 0 | / | 0 | / |
| Name of employee | Name of shareholder company | Position held in the shareholder's company |
| Sai Zhiyi | Shandong Hi-Speed Group Co., Ltd. | Executive director |
| Han Daojun | China Merchants Expressway Network & Technology Holdings Co., Ltd. | Senior Consultant |
| Meng Jie | China Merchants Expressway Network & Technology Holdings Co., Ltd. | Chief Analyst and General Manager of Capital Operation Department (Board Office) |
| Liang Zhanhai | Shandong Hi-Speed Group Co., Ltd. | Minister of Planning and Finance |
| Liu Jingwei | China Merchants Expressway Network & Technology Holdings Co., Ltd. | Manager of Capital Operation Department (Board Office) |
| Li Hang | Shandong Hi-Speed Group Co., Ltd. | CPC Committee member, Deputy General Manager |
| Description of employment in the shareholder's company | None | |
| Name of employee | Name of other companies | Position held in the other company |
| Han Daojun | Guangxi Wuzhou Communications Co., Ltd | Deputy Director |
| Han Daojun | Chongqing Chengyu Expressway Co., Ltd | Deputy Director |
| Han Daojun | Chongqing Communications Research and Design Institute Co., Ltd. of China Merchants | Director |
| Han Daojun | Traffic Information Technology Co., Ltd of China Merchants | Director |
| Han Daojun | Xinzhi Technology Co., Ltd of China Merchants | Director |
| Han Daojun | China Highway Society | Executive Director, Deputy Secretary General |
| Meng Jie | Henan Zhongyuan Expressway Co., Ltd | Director |
| Meng Jie | Jiangsu Ningjingyan Expressway Co., Ltd | Director |
| Meng Jie | Heilongjiang Transportation Development Co., Ltd | Director |
| Meng Jie | Hyundai Investment Co., Ltd | Director |
| Liang Zhanhai | Shandong Hi-Speed Group (Hong Kong) Co., Ltd | Director |
| Liang Zhanhai | China Shandong Hi-speed Financial Group Limited | Non-executive Director |
| Fan Yuejin | Qingdao University | Consultant, Honorary Director of the Council |
| Liu Jianwen | Beijing University | Professor of Law School, doctoral supervisor of economic law major |
| Liu Jianwen | Liaoning University | Distinguished Professor |
| Liu Jianwen | Yangtze River Scholars Award Program | Distinguished Professor |
| Wei Jian | Zhongtai Securities and Finance Research Institute of Shandong University | Professor and doctoral supervisor of Zhongtai Securities and Finance Research Institute of Shandong University, New Century Excellent Talents of the Ministry of Education |
| Wei Jian | Journal of Shandong University (ZS Edition) | Editor in chief |
| Wang Hui | Hexin Certified Public Accountants (LLP) | Chief partner |
| Wang Hui | Shandong Institute of Certified Public Accountants | Vice President |
| Wang Hui | Professional Steering Committee of China Institute of Certified Public Accountants | Committee member |
| Yin Jijun | Director of Weihai Commercial Bank Co., Ltd. | Director |
| Liu Jingwei | Henan Zhongyuan Expressway Co., Ltd | Supervisor |
| Liu Jingwei | Hyundai Investment Co., Ltd | Supervisor |
| Lin Leqing | Li'anda Certified Public Accountants Co., Ltd | Certified public accountant |
| Zhou Liang | Shandong Hi-Speed Road Development Co., Ltd. | Director |
| Zhou Liang | Dongxing Securities Co., Ltd. | Director |
| Zhou Liang | Shandong Hi-Speed Changying Equity Investment Management Co., Ltd. | Director |
| Zhou Liang | Shandong Hi-Speed Sulianyun Technology Co., Ltd. | Director |
| Zhou Liang | Shandong Hi-speed Property Service Development Group Co., Ltd. | Director |
| Li Hang | Weihai City Commercial Bank | Director |
| Wei Shirong | Beijing Dacheng Law Firm | Senior partner, member of capital markets professional committee, member of financial professional committee |
| Wei Shirong | Dacheng DENTONS International Law Firm | Leader of Global and China transportation and infrastructure industry Group |
| Wei Shirong | National Development and Reform Commission | PPP expert database legal expert |
| Wang Feng | Zhongshen Zhonghuan Certified Public Accountants (special general partnership) | Partner |
| Wang Feng | Beijing Institute of Certified Public Accountants | Professional Technology and Continuing Education Committee |
| Sun Xu | Tibet China Merchants Communications and Construction Electronic Information Co., Ltd | Financial Director and Financial Manager |
| Wang Xiaolei | Shandong Lijin Huanghe Highway and Bridge Co., Ltd. | Chairman of the board of supervisors |
| Wang Xiaolei | Hubei Wujing Expressway Development Co., Ltd | Supervisor |
| Description of employment in other companies | None | |
| Decision-making procedures for remuneration of directors, supervisors and senior managers. | The directors, supervisors and senior managers of the company shall be paid with annual salary. |
| Determination basis for remuneration of directors, supervisors and senior managers. | On December 21, 2018, the Company's fourth extraordinary general meeting of shareholders approved the Management Measures for the Remuneration of Directors, Supervisors and Senior Managers; on June 13, 2020, the Company's second extraordinary general meeting of shareholders deliberated and approved the Proposal on Adjusting the Remuneration of External Directors and Supervisors. |
| Actual payment of remuneration of directors, supervisors and senior managers | See " (I) Shareholding Change and Remuneration of directors, supervisors and senior managers" for details of remuneration payable of directors, supervisors and senior managers of the company for this year. |
| Total remuneration actually received by all directors, supervisors and senior managers at the end of the reporting period | See " (I) Shareholding Change and Remuneration of directors, supervisors and senior managers" for details of remuneration payable of directors, supervisors and senior managers of the company for this year. |
| Name | Title | Variation condition | Variable causes |
| Li Hang | Director | Resign | Because of work |
| Yin Jijun | Director | Resign | Because of work |
| Wei Shirong | Independent Director | Resign | Because of work |
| Wang Feng | Independent Director | Resign | Because of work |
| Luo Chuliang | Supervisor, Chairman of the Board of Supervisors | Resign | Because of work |
| Sun Xu | Supervisor | Resign | Because of work |
| Zhang Yiren | Employee Supervisor | Resign | Because of work |
| Wang Xiaolei | Employee Supervisor | Resign | Because of work |
| Sun Jiarong | Deputy General Manager | Resign | Because of work |
| Zhang Xiaobing | Deputy General Manager | Resign | Because of work |
| Liang Zhanhai | Director | Election | Because of work |
| Zhang Xiaobing | Director | Election | Because of work |
| Sui Rongchang | Director | Election | Because of work |
| Fan Yuejin | Independent Director | Election | Because of work |
| Wang Hui | Independent Director | Election | Because of work |
| Chen Fang | Employee Supervisor | Election | Because of work |
| Zhu Yuqiang | Employee Supervisor | Election | Because of work |
| Liu Jingwei | Supervisor | Election | Because of work |
| Yin Jijun | Chairman of the board of supervisors | Election | Because of work |
| Hou Fujin | Deputy General Manager | Employment | Because of work |
VI. Employees of the parent company and major subsidiaries.(I) Condition of employee
| Number of active employees in the parent company | 5,024 |
| Number of active employees in the major subsidiaries | 1,040 |
| Total number of active employees | 6,064 |
| Number of retired employees whose salary need to be borne by the parent company and major subsidiaries | 654 |
| Composition of the discipline | |
| Category of discipline composition | Number of professionals |
| Production personnel | 4,376 |
| Salesman | 16 |
| Technical staff | 956 |
| Financial personnel | 95 |
| Administrative staff | 621 |
| Total | 6,064 |
| Education level | |
| Education level category | Number (Person) |
| Graduate student | 447 |
| Bachelor’s Degree | 3,139 |
| Junior college education | 1,873 |
| Under junior college | 605 |
| Total | 6,064 |
Chapter IX Company Governance
I. Description of corporate governance.
√ Applicable □ Not applicable
The company has established the governance structure composed of the general meeting of shareholders, theboard of directors, the board of supervisors and the management level. Based on the Articles of Associationof the company, the company has formulated multi-level governance rules to clarify the responsibilities andobligations of all parties, ensure that the general meeting of shareholders, the board of directors and thespecial committees, the board of supervisors and the management level perform their respective duties,coordinate with each other and effectively control and balance each other, and constantly improve the levelof corporate governance and decision-making efficiency.The Board of Directors of the Company is composed of 11 directors and the Board of Supervisors iscomposed of 5 supervisors, including 2 employee supervisors. During the reporting period, the Company'sBoard of Directors strictly implemented the resolutions of the general meeting of shareholders. Independentdirectors made suggestions on the Company’s business development, compliance operations, reward andpunishment mechanism, etc. with their rich work experience in professional fields. Supervisors played theirsupervisory functions and participated in the Company's standardized governance by attending the boardmeeting and the general meeting of shareholders and organizing the convening of the supervision meeting.In 2020, the Company held 4 shareholder meetings, 18 board meetings, and 7 supervision meetings, havingdeliberating on 93 issues and disclosing nearly 160 announcements and annexes.During the reporting period, the Company won Grade A Information Disclosure Work Evaluation of theShanghai Stock Exchange in 2019-2020, the Tianma Award for the Best Board of Directors for the 11thChina Listed Company Investor Relations, and the Best Letter Approval Award for the 4th China ExcellentIR (2020-2021).Whether there are significant differences between corporate governance and the requirements of relevantprovisions of CSRC; if yes, the reasons shall be explained.
□ Applicable √ Not applicable
II. 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 | 5/11/2020 | www.sse.com.cn | 5/12/2020 |
| The second extraordinary general meeting of shareholders in 2020 | 6/13/2020 | www.sse.com.cn | 6/15/2020 |
| Annual general meeting of 2019 | 6/23/2020 | www.sse.com.cn | 6/24/2020 |
| The third extraordinary general meeting of shareholders in 2020 | 11/21/2020 | www.sse.com.cn | 11/23/2020 |
| Name of the director | The independent director or not | Participation in the board of director | Participation in the general meeting of shareholders | |||||
| Times to attend the board of directors in | Attendance times in person | Times to attend the meeting by means of communication | Times of authorized attendance | Times of absence | Whether absence from meeting in | Times to attend the general meeting of | ||
| this year | person for two consecutive times? | shareholders | ||||||
| Sai Zhiyi | No | 18 | 18 | 16 | 0 | 0 | No | 4 |
| Han Daojun | No | 18 | 18 | 18 | 0 | 0 | No | 0 |
| Lv Sizhong | No | 18 | 18 | 16 | 0 | 0 | No | 3 |
| Zhang Xiaobing | No | 16 | 16 | 14 | 0 | 0 | No | 3 |
| Meng Jie | No | 18 | 18 | 18 | 0 | 0 | No | 0 |
| Liang Zhanhai | No | 16 | 16 | 16 | 0 | 0 | No | 2 |
| Sui Rongchang | No | 16 | 16 | 14 | 0 | 0 | No | 4 |
| Fan Yuejin | Yes | 16 | 16 | 16 | 0 | 0 | No | 0 |
| Liu Jianwen | Yes | 18 | 18 | 18 | 0 | 0 | No | 0 |
| Wei Jian | Yes | 18 | 18 | 18 | 0 | 0 | No | 1 |
| Wang Hui | Yes | 16 | 16 | 16 | 0 | 0 | No | 0 |
| Li Hang | No | 2 | 2 | 2 | 0 | 0 | No | 0 |
| Yin Jijun | No | 2 | 2 | 2 | 0 | 0 | No | 1 |
| Wei Shirong | Yes | 2 | 2 | 2 | 0 | 0 | No | 0 |
| Wang Feng | Yes | 2 | 2 | 2 | 0 | 0 | No | 0 |
| Number of board meetings held within the year | 18 |
| Including: number of on-site meetings | 0 |
| Number of meetings held by means of communication | 16 |
| Number of meetings held on site in combination with the means of communication | 2 |
V. Explanation of the board of supervisors about the risks of the company
□ Applicable √ Not applicable
VI. Explanation of the company about inability to guarantee independence and maintain independentoperation ability in terms of business, personnel, assets, institutions and finance with its controllingshareholders
□ Applicable √ Not applicable
In case of any horizontal competition, the corresponding solutions, work progress and follow-up work planof the company.
□ Applicable √ Not applicable
VII. Evaluation mechanism for senior managers and establishment and implementation of incentivemechanism in the reporting period
√ Applicable □ Not applicable
The senior managers of the Company will be paid with annual salary. The salary mainly consists of basicsalary, performance salary and medium and long-term incentive.The performance compensation and mediumand long-term incentives will be paid according to the Company's operation and assessment. Equity-basedIncentive Plan was implemented in the reporting period, and totaling 10.48 million stock options were grantedto senior management on June 13, 2020. The waiting period for the stock options granted is 24 months, 36months and 48 months from the date of grant, which may be exercised after 24 months from the date of grant.If the exercise conditions specified in the plan are satisfied within the exercise date, the stock options grantedwill be exercised by the incentive objects in three installments within the next 36 months after 24 monthsfrom the date of grant.VIII. Whether to Disclose the Internal Control Self-Evaluation Report
√ Applicable □ Not applicable
The Company's 2020 internal control self-evaluation report will be published on the website of the ShanghaiStock Exchange (www.sse.com.cn) on March 31, 2021.Description of major defects in internal control during the reporting period.
□ Applicable √ Not applicable
IX. Statement of Information Related to Internal Control Audit Report
√ Applicable □ Not applicable
ShineWing Certified Public Accountants (special general partnership) which is the company's internal controlaudit institution issued an internal control audit report for the company, which was published on the websiteof Shanghai Stock Exchange www.sse.com.cn on March 31, 2021.Disclosure of internal control audit report: YesType of opinion on internal control audit report: standard clean opinionX. Other
□ Applicable √ Not applicable
Chapter X. Corporate Bond-Related Information
□ Applicable √ Not applicable
Chapter XI Financial ReportI. Audit Report
√ Applicable □ Not applicable
Audit Report
XYZH/2021JNAA30098All shareholders of Shandong Hi-Speed Group Co., Ltd:
I. Audit opinionWe have audited attached financial statement of Shandong Hi-Speed Group Co., Ltd (Hereinafterreferred to as Shandong Hi-Speed Group), including consolidated balance sheet and balance sheet ofparent company on December 31, 2020, consolidated statement of profit and profit statement of parentcompany, consolidated statement of cash flow and cash flow statement of parent company, consolidatedchange statement of owner’s equity and change statement of owner’s equity of parent company andnotes to financial statement in 2020.In our opinion, the attached financial statements are prepared in accordance with regulations ofAccounting Standards for Business Enterprises (ASBE) in all major aspects, and fairly reflect theconsolidated financial situations of Shandong Hi-speed and the parent company up to December 31,2020 as well as the consolidated operation achievements and cash flow and that of the parent companyin 2020.II. Basis for Forming an Audit OpinionWe conducted the audit in accordance with the stipulations of the Auditing Standards for CertifiedPublic Accountants of China. The “Responsibility of Certified Public Accountants for AuditingFinancial Statements” part of the audit report further explains our responsibilities under these standards.We are independent from Shandong Hi-speed in accordance with the Code of Ethics for Certified PublicAccountants in China, and we have fulfilled other responsibilities for professional ethics We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion.III. Key audit mattersThe key audit matters are the most important matters for the audit of the current financial statementsaccording to our professional judgment. The response to these matters is based on the audit of thefinancial statements as a whole and the formation of audit opinions. No opinion is expressed on thesematters separately.
| 1. Impairment of other receivables | |
| Key audit matters. | Response in audit |
| As of December 31, 2020, as stated in notes IV, 12/VI, 7/VI and 53 to the consolidated financial statements of Shandong Hi-speed, the balance of other receivables of Shandong Hi-speed is 4,491,069,200 yuan, and the balance of bad debt provision is 315,596,300 yuan. The bad debt provision of other receivables made by Shandong Hi-speed management is based on the expected credit loss rate of other receivables. As the amount of bad debt provision for other receivables has the significant impact on the financial statements and involves the estimation and judgment of the management, we determine the bad debt provision for other receivables as one of the key audit matters. | Our main audit procedures are: -understand and evaluate the design and operational effectiveness of key internal controls of management related to the impairment of other receivables; -check whether the relevant accounting policies formulated by the management meet the relevant provisions of the new financial instrument standards and whether the changes of accounting policies have been reviewed by the board of directors; -review the rationality of the empirical data on historical credit loss and key assumptions used by the management to calculate the expected credit loss rate; -obtain the expected credit loss model of other receivables, check management's assumptions and calculation process of expected credit loss, and recalculate; -evaluate the management's judgment on the changes in credit risk, and review the rationality of the different |
| stages of other receivables; -assess whether the accounting treatment of bad debt provision of other receivables and the presentation and disclosure of relevant information in the financial statements are appropriate. | |
| 2. Depreciation and amortization of franchise rights of road products and toll roads | |
| Key audit matters. | Response in audit |
| As of December 31, 2020, as stated in notes IV, 20/IV, 23/VI, 17.1 (1)/VI, 19 (1) to the consolidated financial statements of Shandong Hi-speed, the net value of the franchise rights of Shandong Hi-speed road property and toll roads is 45,610,101,300 Yuan, and the amount of depreciation and amortization in 2020 is 181,353,000 Yuan. The depreciation amount of Shandong Hi-speed road property and toll road franchise is calculated based on the ratio of the actual traffic flow in a specific year to the estimated total traffic flow in the remaining toll period. As the estimated total traffic volume in the remaining toll period involves significant accounting estimates, we have listed the accuracy of depreciation and amortization of Shandong Hi-way road property and toll road franchise as one of the key audit matters. | Our main audit procedures are: -evaluate the qualification, professional competence and independence of the third-party organization for traffic flow prediction; -obtain the prediction report of the external independent professional organization and check its important assumptions, and compare the important assumptions with the planning of the government; -compare the difference between the predicted traffic flow and the actual traffic flow and evaluate the accuracy of the traffic flow prediction report; -check whether the actual traffic flow data applied by the management is consistent with the actual traffic flow data obtained by Shandong Hi-speed from external parties; -recalculate the depreciation and amortization of the road property and toll road franchise rights, and compare with the depreciation and amortization amount of the road property and toll road franchise rights in the financial statements. |
Our objectives are to obtain reasonable assurance about whether the consolidated financial statementsas a whole are free from material misstatement due to fraud or error, and to issue an auditor reportcontaining audit opinions. Reasonable assurance is a high level of assurance, but is not a guarantee thatan audit conducted in accordance with auditing standards will always detect a material misstatementwhen it exists. Misstatements may be caused by fraud or error. The misstatement is generally consideredto be material if it is reasonably expected that the individual or aggregated misstatement may affect theeconomic decisions made by the financial statement user in accordance with the financial statements.We exercise professional judgment and maintain professional skepticism throughout the audit accordingto the auditing standards. Meanwhile, we also perform the following tasks:
(1) Identify and assess the risk of material misstatement of financial statements due to fraud or error,design and implement audit procedures to address these risks, and obtain adequate and appropriate auditevidence as the basis for delivering audit opinions. As fraud may involve collusion, forgery, intentionalomission, false statements or overriding internal control, the risk of failing to detect significantmisstatement due to fraud is higher than that due to error.
(2) Understand the internal control related to audit to design appropriate audit procedures.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by management.
(4) Draw a conclusion on the appropriateness of the going concern assumption used by the management.Besides, based on the obtained audit evidence, conclusions can be drawn on whether there is significantuncertainty in matters or circumstances which will cause great concerns on the continuous operationcapacity of Shandong Hi-speed. If we conclude that a material uncertainty exists, we are required todraw attention in our audit report to the related disclosures in the financial statements or, if suchdisclosures are inadequate, to modify our opinion. Our conclusions are based on information availableas of the audit report. However, future events or conditions may cause Shandong Hi-speed to cease theoperation
(5)Evaluate the overall presentation, structure and content of the financial statements and whether thefinancial statements represent the relevant transactions and events in fair presentation.
(6) Obtain sufficient and appropriate audit evidence for the financial information of entities or businessactivities of Shandong Hi-speed to express audit opinions on the financial statements. We areresponsible for audit guidance, supervision and implementation of the group, and take all responsibilitiesfor audit opinions.We communicate with the governance layer regarding, among other matters, the planned scope andtiming of the audit and significant audit findings, including any significant deficiencies in internalcontrol that we identify during our audit.We also provide the governance with a statement of our compliance with the code of ethics related toour independence and communicate with the governance on all relationships and other matters that mayreasonably be considered to affect our independence, as well as the relevant precautions (if applicable).From the matters communicated with the governance level, we determine which matters are mostimportant for the audit of the financial statements of the current period, and thus constitute the key auditmatters. We describe these matters in the audit report, unless the public disclosure of these matters isprohibited by laws and regulations, or in very few cases, if it is reasonably expected that the negativeconsequences caused by communicating one certain matter in the audit report outweigh the benefitsgenerated in the public interest, we confirm that the matters shall not be communicated in the auditreport.
| Shinewing Certified Public Accountants (Special Partnership) | Chinese CPA: Wang Gongyong (Project Partner) |
| Chinese CPA:Ma Tengyong | |
| Beijing, China | March 29, 2012 |
Consolidated assets and liabilities.
December 31, 2020Prepared by: Shandong Hi-Speed Co., Ltd
Unit: yuan Currency: CNY
| Item | Note(s) | December 31, 2020 | December 31, 2019 |
| Current assets: | VII·1 | ||
| Monetary funds | 2,260,788,437.97 | 1,816,616,192.72 | |
| Deposit reservation for balance | |||
| Funds lent | |||
| Trading financial assets | VII. 2 | 37,879,166.67 | |
| Derivative financial assets | |||
| Notes receivable | VII. 4 | 78,553,471.98 | 166,046,781.89 |
| Accounts receivable | VII. 5 | 519,497,846.78 | 216,250,199.80 |
| Receivables financing | VII. 6 | 150,000,016.63 | 108,547,434.59 |
| Advanced payment | VII. 7 | 146,619,294.26 | 181,264,318.42 |
| Premiums receivable | |||
| Reinsurance accounts receivable | |||
| Reserves for reinsurance contract receivable | |||
| Other receivables | VII. 8 | 4,250,510,895.17 | 5,363,935,525.48 |
| Including: Interest receivable | |||
| Dividends receivable | VII. 8 | 75,037,985.75 | 524,516,294.16 |
| Redemptory monetary capital for sale | |||
| Stock | VII. 9 | 1,390,381,878.59 | 1,914,874,948.39 |
| Contract assets | VII. 10 | 160,875,310.33 | |
| Held-for-sale assets | |||
| Non-current assets due within one year | VII. 12 | 113,246,088.67 | 88,000,000.00 |
| Other current assets | VII. 13 | 3,738,969,498.66 | 1,207,089,124.63 |
| Total Current Assets | 12,847,321,905.71 | 11,062,624,525.92 | |
| Non-current assets: | |||
| Disbursement of loans and advances | |||
| Debt investment | VII. 14 | 2,614,476,734.72 | 2,288,507,600.00 |
| Other investment on bonds | |||
| Long-term receivables | |||
| Long-term equity investments | VII. 17 | 12,932,861,522.52 | 10,876,650,896.87 |
| Other equity instrument investment | VII. 18 | 349,241,523.36 | 354,424,450.19 |
| Other non-current financial assets | VII. 19 | 599,602,448.11 | 5,667,934,389.21 |
| Investment real estates | VII. 20 | 724,395,942.56 | 755,113,614.14 |
| Fixed assets | VII. 21 | 9,267,680,678.56 | 9,609,521,167.21 |
| Construction in process | VII. 22 | 8,480,761,085.91 | 2,530,414,811.07 |
| Productive biological assets | |||
| Oil and gas assets |
| Right-of-use assets | |||
| Intangible assets | VII. 26 | 42,655,730,883.25 | 42,329,746,220.35 |
| Development expenditure | |||
| Goodwill | |||
| Long-term deferred expenses | VII. 29 | 5,708,133.98 | 8,123,554.12 |
| Deferred income tax assets | VII. 30 | 679,621,876.20 | 616,223,885.62 |
| Other non-current assets | VII. 31 | 1,759,900,789.04 | 1,923,575,663.99 |
| Total non-current assets | 80,069,981,618.21 | 76,960,236,252.77 | |
| Total assets | 92,917,303,523.92 | 88,022,860,778.69 | |
| Current liabilities: | |||
| Short-term loans | VII. 32 | 2,861,018,522.06 | 568,567,899.41 |
| Borrowing from the central bank | |||
| Loans from other banks and other financial institutions | |||
| Trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | VII. 35 | 276,072,829.09 | 33,211,430.37 |
| Accounts payable | VII. 36 | 4,667,741,873.74 | 5,020,997,647.35 |
| Advance receipt | VII. 37 | 69,254,472.77 | 233,063,704.00 |
| Contract liabilities | VII. 38 | 118,774,829.03 | |
| Financial assets sold for repurchase | |||
| Receipt of deposits and deposits from other banks | |||
| Funds received as agent of stock exchange | |||
| Acting underwriting securities | |||
| Payroll payable | VII. 39 | 104,928,898.05 | 90,270,532.45 |
| Taxes payable | VII. 40 | 573,896,178.54 | 796,192,749.13 |
| Other payables | VII. 41 | 3,484,301,888.14 | 2,660,600,796.25 |
| Where: Interest payable | |||
| Dividends payable | VII. 41 | 60,885,896.25 | 25,917,525.46 |
| Handling charges and commissions payable | |||
| Cession insurance premiums payable | |||
| Liabilities held for sale | |||
| Other non-current liabilities due within one year | VII. 43 | 3,692,845,879.29 | 2,675,588,903.13 |
| Other current liabilities | VII. 44 | 2,529,825,261.70 | 2,514,549,315.05 |
| Total current liabilities | 18,378,660,632.41 | 14,593,042,977.14 | |
| Non-current liabilities | |||
| Reserve funds for insurance contracts | |||
| Long-term Loans | VII. 45 | 34,977,981,637.85 | 33,314,036,294.39 |
| Bonds payable | |||
| Including: preferred stocks | |||
| Perpetual debt | |||
| Lease liabilities |
| Long-term payable | VII. 48 | 307,170,000.00 | 307,170,000.00 |
| Long-term payroll payable | VII. 49 | 214,288,788.88 | 226,850,277.65 |
| Estimated liabilities | VII. 50 | 109,118,519.88 | 89,261,686.31 |
| Deferred Income | VII. 51 | 1,593,513,850.06 | 1,209,465,555.56 |
| Deferred income tax liabilities | VII. 30 | 1,041,909,470.20 | 908,782,748.28 |
| Other non-current liabilities | |||
| Total non-current liabilities | 38,243,982,266.87 | 36,055,566,562.19 | |
| Total liabilities | 56,622,642,899.28 | 50,648,609,539.33 | |
| 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 | 3,200,000,000.00 | 2,000,000,000.00 |
| Including: preferred stocks | |||
| Perpetual debt | 3,200,000,000.00 | 2,000,000,000.00 | |
| Capital reserves | VII. 55 | 1,748,100,650.09 | 4,836,763,252.70 |
| Minus: treasury stocks | |||
| Other comprehensive income | VII. 57 | -47,382,900.51 | 9,953,082.58 |
| Appropriate reserve | VII. 58 | 95,654,456.55 | 82,671,061.69 |
| Surplus reserves | VII. 59 | 3,388,948,843.13 | 3,164,742,776.43 |
| General risk reserves | |||
| Adjustment of the undistributed profits | VII. 60 | 18,254,274,865.21 | 18,370,546,470.80 |
| Total owner’s equities (or shareholders' equity) attributable to parent company | 31,450,761,771.47 | 33,275,842,501.20 | |
| Minority equity | 4,843,898,853.17 | 4,098,408,738.16 | |
| Total owner’s equities (shareholder’s equities) | 36,294,660,624.64 | 37,374,251,239.36 | |
| Total for Liabilities and Owners’ Equity (or Shareholders’ Equity) | 92,917,303,523.92 | 88,022,860,778.69 |
| Legal representative: Sai Zhiyi | Person in charge of accounting work: Lv Sizhong | Chief accountant: Zhou Liang | Person in charge of accounting agency: Chen Fang |
Assets and liabilities of parent company:
December 31, 2020Prepared by: Shandong Hi-Speed Co., Ltd
Unit: yuan Currency: CNY
| Item | Note(s) | December 31, 2020 | December 31, 2019 |
| Current assets: | |||
| Monetary funds | 928,288,455.53 | 870,975,280.55 | |
| Trading financial assets | |||
| Derivative financial assets | |||
| Notes receivable | 33,981,915.06 | ||
| Accounts receivable | |||
| Receivables financing | |||
| Advanced payment | 11,237,709.41 | 11,562,276.40 | |
| Other receivables | XVII ·2 | 6,219,568,039.82 | 4,489,749,765.83 |
| Including: Interest receivable | |||
| Dividends receivable | 75,037,985.75 | ||
| Stock | |||
| Contract assets | |||
| Held-for-sale assets | |||
| Non-current assets due within one year | |||
| Other current assets | 1,330.70 | 41,864.44 | |
| Total Current Assets | 7,193,077,450.52 | 5,372,329,187.22 | |
| Non-current assets: | |||
| Debt investment | 1,050,000,000.00 | 1,500,000,000.00 | |
| Other investment on bonds | |||
| Long-term receivables | |||
| Long-term equity investments | XVII ·4 | 22,198,322,722.62 | 22,084,563,217.73 |
| Other equity instrument investment | 17,614,686.36 | 17,614,686.36 | |
| Other non-current financial assets | |||
| Investment real estates | 99,593,869.59 | 103,347,729.63 | |
| Fixed assets | 5,847,333,014.15 | 5,944,035,071.13 | |
| Construction in process | 6,609,958,928.50 | 1,523,216,463.56 | |
| Productive biological assets | |||
| Oil and gas assets | |||
| Right-of-use assets | |||
| Intangible assets | 26,031,443,072.07 | 26,139,356,460.31 | |
| Development expenditure | |||
| Goodwill | |||
| Long-term deferred expenses | 2,255,539.59 | 1,499,423.29 | |
| Deferred income tax assets | 553,019,757.44 | 571,492,951.37 | |
| Other non-current assets | 1,691,331,534.50 | 2,707,210,551.70 | |
| Total non-current assets | 64,100,873,124.82 | 60,592,336,555.08 |
| Total assets | 71,293,950,575.34 | 65,964,665,742.30 | |
| Current liabilities: | |||
| Short-term loans | 2,713,985,295.67 | 3,404,762,465.75 | |
| Trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | 241,800,000.00 | ||
| Accounts payable | 3,827,021,730.09 | 4,299,771,896.22 | |
| Advance receipt | 34,980,345.86 | ||
| Contract liabilities | |||
| Payroll payable | 4,191,355.63 | 3,081,586.76 | |
| Taxes payable | 329,613,826.45 | 514,166,694.40 | |
| Other payables | 2,644,367,755.20 | 1,427,028,921.60 | |
| Where: Interest payable | |||
| Dividends payable | 17,677,077.63 | ||
| Liabilities held for sale | |||
| Other non-current liabilities due within one year | 2,624,567,516.60 | 1,971,942,633.55 | |
| Other current liabilities | 2,515,141,657.31 | 2,514,549,315.05 | |
| Total current liabilities | 14,900,689,136.95 | 14,170,283,859.19 | |
| Non-current liabilities | |||
| Long-term Loans | 25,655,628,195.96 | 23,264,718,125.26 | |
| Bonds payable | |||
| Including: preferred stocks | |||
| Perpetual debt | |||
| Lease liabilities | |||
| Long-term payable | 294,000,000.00 | 294,000,000.00 | |
| Long-term payroll payable | 111,690,956.40 | 125,852,148.97 | |
| Estimated liabilities | |||
| Deferred Income | 708,624,257.65 | 301,639,375.00 | |
| Deferred income tax liabilities | 165,146,292.77 | 66,701,454.09 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 26,935,089,702.78 | 24,052,911,103.32 | |
| Total liabilities | 41,835,778,839.73 | 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 | 3,200,000,000.00 | ||
| Including: preferred stocks | |||
| Perpetual debt | 3,200,000,000.00 | ||
| Capital reserves | 1,902,762,862.20 | 3,723,794,637.56 | |
| Minus: treasury stocks | |||
| Other comprehensive income | -48,454,749.94 | 9,953,082.58 | |
| Appropriate reserve |
| Surplus reserves | 3,360,606,953.46 | 3,136,400,886.76 | |
| Undistributed profits | 16,232,090,812.89 | 16,060,156,315.89 | |
| Total owner’s equities (shareholder’s equities) | 29,458,171,735.61 | 27,741,470,779.79 | |
| Total for Liabilities and Owners’ Equity (or Shareholders’ Equity) | 71,293,950,575.34 | 65,964,665,742.30 |
| Legal representative: Sai Zhiyi | Person in charge of accounting work: Lv Sizhong | Chief accountant: Zhou Liang | Person in charge of accounting agency: Chen Fang |
| Item | Note(s) | 2020 | 2019 |
| I. Total operating incomes | VII. 61 | 11,365,164,781.15 | 10,414,550,126.20 |
| Including: operating incomes | VII. 61 | 11,365,164,781.15 | 10,414,550,126.20 |
| Interest income | |||
| Premiums earned | |||
| Handling charges and commissions incomes | |||
| II. Total operating costs | 9,863,958,892.09 | 7,625,184,524.90 | |
| Including: operating costs | VII. 61 | 7,560,477,000.27 | 5,764,173,616.16 |
| 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 | 79,170,333.02 | 82,699,807.08 |
| Selling expenses | VII. 63 | 10,629,082.64 | 16,982,565.44 |
| Management expenses | VII. 64 | 537,241,518.01 | 578,995,480.68 |
| Research and development (R&D) expenses | VII. 65 | 67,632,819.17 | 40,248,725.26 |
| Financial expenses | VII. 66 | 1,608,808,138.98 | 1,142,084,330.28 |
| Where Interest expense | 1,701,838,542.17 | 1,436,760,372.33 | |
| Interest income | 93,867,234.96 | 297,069,626.74 | |
| Plus: Other income | VII. 67 | 62,271,278.27 | 34,950,601.38 |
| Investment income (losses are shown with a “-” sign) | VII. 68 | 1,472,376,254.32 | 1,557,019,189.35 |
| Including: investment incomes from associated enterprises and joint ventures | 570,339,660.39 | 376,523,816.81 | |
| Gain on derecognition of financial assets measured at amortized cost | |||
| Foreign exchange gains (losses are shown with |
| a “-” sign) | |||
| Net exposure hedge gain (losses are shown with a “-” sign) | |||
| Gain on changes in fair value (losses are shown with a “-” sign) | |||
| Credit impairment losses (losses are shown with a “-” sign) | -38,010,697.87 | 104,886,552.70 | |
| Impairment loss on assets (losses are shown with a “-” sign) | -69,698,486.83 | 737,101.08 | |
| Gain on disposal of assets (losses are shown with a “-” sign) | 1,892,517.97 | -3,338,999.77 | |
| III. Operating Profit (losses are shown with a “-” sign) | 2,930,036,754.92 | 4,488,306,696.24 | |
| Plus: non-operating incomes | 111,132,022.46 | 89,085,844.38 | |
| Minus: non-operating expenses | 56,302,967.80 | 167,266,284.34 | |
| IV. Total Profit (total loss is shown with a “-” sign) | 2,984,865,809.58 | 4,410,126,256.28 | |
| Minus: income tax expenses | 845,430,409.73 | 1,198,946,988.11 | |
| V. Net Profit (net loss is shown with a “-” sign) | 2,139,435,399.85 | 3,211,179,268.17 | |
| (I) Classified by continuity of operation | |||
| 1. Net profit from continuing operations (net loss is shown with a “-” sign) | 2,139,435,399.85 | 3,211,179,268.17 | |
| 2. Net profit from discontinued operations (net loss is shown with a “-” sign) | |||
| (II) Classified by attribution of ownership | |||
| 1. Net profit attributable to shareholders of the parent company (net loss is shown with a “-” sign) | 2,038,999,018.13 | 3,126,071,417.08 | |
| 2. Minority interests' gains and losses (net loss is shown by "_") | 100,436,381.72 | 85,107,851.09 | |
| VI. After-tax net amount of other comprehensive income | -57,335,983.09 | 2,629,965.89 | |
| (I) After-tax net amount of other comprehensive incomes attributable to owners of the parent company | -57,335,983.09 | 2,874,964.78 | |
| 1. Other consolidated Income that cannot be reclassified to profit or loss | -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 consolidated income to be reclassified to profit or loss | -52,153,056.26 | 2,874,964.78 | |
| (1) Other comprehensive income that can be | -52,153,056.26 | 2,874,964.78 | |
| converted to profit and loss under 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) Discount difference of foreign currency financial statements | |||
| (7) Others | |||
| (II) After-tax net amount of other comprehensive income attributable to minority shareholders | -244,998.89 | ||
| VII. Total comprehensive income | 2,082,099,416.76 | 3,213,809,234.06 | |
| (I) Total comprehensive income attributable to owners of the parent company | 1,981,663,035.04 | 3,128,946,381.86 | |
| (II) Total comprehensive income attributable to minority shareholders | 100,436,381.72 | 84,862,852.20 | |
| VIII. Earnings per share: | |||
| (I). Basic earnings per share (yuan/share) | 0.40 | 0.65 | |
| (II). Diluted earnings per share (yuan/share) | 0.40 | 0.65 |
| Legal representative: Sai Zhiyi | Person in charge of accounting work: Lv Sizhong | Chief accountant: Zhou Liang | Person in charge of accounting agency: Chen Fang |
| Item | Note(s) | 2020 | 2019 |
| I. Operating incomes | XVII ·5 | 5,433,545,542.19 | 5,416,671,096.24 |
| Minus: operating costs | XVII ·5 | 3,126,521,536.40 | 2,569,697,067.29 |
| Taxes and surcharges | 36,609,615.38 | 37,383,537.96 | |
| Selling expenses | |||
| Management expenses | 156,474,259.74 | 183,623,488.52 | |
| Research and development (R&D) expenses | 22,209,698.34 | 5,163,715.62 | |
| Financial expenses | 1,174,143,153.73 | 519,346,130.99 | |
| Where Interest expense | 1,377,206,551.03 | 882,160,313.72 | |
| Interest income | 203,183,301.97 | 364,592,835.22 | |
| Plus: Other income | 32,034,600.35 | 457,500.00 | |
| Investment income (losses are shown with a “-” sign) | XVII ·6 | 1,889,609,968.46 | 1,386,335,979.72 |
| Including: investment incomes from associated enterprises and joint ventures | 407,748,201.80 | 309,238,743.35 | |
| Gain on derecognition of financial assets measured at amortized cost | |||
| Net exposure hedge gain (losses are shown with a “-” sign) | |||
| Gain on changes in fair value (losses are shown with a “-” sign) | |||
| Credit impairment losses (losses are shown with a “-” sign) | -3,211,349.74 | 22,671,633.53 | |
| Impairment loss on assets (losses are shown with a “-” sign) | |||
| Gain on disposal of assets (losses are shown with a “-” sign) | |||
| II. Operating profit (loss is shown with a “-” sign) | 2,836,020,497.67 | 3,510,922,269.11 | |
| Plus: non-operating incomes | 61,070,052.10 | 43,228,662.71 | |
| Minus: non-operating expenses | 39,081,928.51 | 147,089,768.88 | |
| III. Total profit (the total loss is shown with a “-” sign) | 2,858,008,621.26 | 3,407,061,162.94 | |
| Minus: income tax expenses | 615,947,954.27 | 687,540,776.47 | |
| IV. Net profit (net loss is shown with a “-” sign) | 2,242,060,666.99 | 2,719,520,386.47 | |
| (i) Net income from continuing operations (net loss is shown with a “-” sign) | 2,242,060,666.99 | 2,719,520,386.47 | |
| (ii) Net profit from discontinued operations (net loss is shown with a “-” sign) | |||
| V. After-tax net amount other comprehensive income | -58,407,832.52 | 3,129,963.63 | |
| (I) Other comprehensive incomes that can’t be reclassified into profit and loss | |||
| 1. Re-measurement of changes in 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 | -58,407,832.52 | 3,129,963.63 | |
| 1. Other comprehensive income that can be included in profit or loss under the equity method. | -58,407,832.52 | 3,129,963.63 | |
| 2. Fair value changes of other debt investment | |||
| 3. 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 | |||
| VI. Total comprehensive income | 2,183,652,834.47 | 2,722,650,350.10 | |
| VII. Earnings per share: | |||
| (I). Basic earnings per share (yuan/share) | |||
| (II). Diluted earnings per share (yuan/share) |
| Legal representative: Sai Zhiyi | Person in charge of accounting work: Lv Sizhong | Chief accountant: Zhou Liang | Person in charge of accounting agency: Chen Fang |
| Item | Note(s) | 2020 | 2019 |
| I. Net cash flow from operating activities | |||
| Cash received from selling goods and providing services | 11,670,481,701.64 | 13,707,673,725.71 | |
| Net additions to customer deposits and interbank deposits | |||
| Net increase in borrowings from the central bank | |||
| Net increase in funds borrowed from other financial institutions | |||
| Cash received from receiving insurance premium of original insurance contract | |||
| Net cash received from reinsurance business | |||
| Net increase in insured's deposits and investment funds | |||
| Cash received from interests, fees and commissions | |||
| Net Increase in borrowing funds | |||
| Net increase in repo business funds | |||
| Net cash received from trading securities | |||
| Tax refunds received | |||
| Cash received from other operating activities | VII. 78 | 2,511,287,458.56 | 2,130,113,130.72 |
| Subtotal of cash inflows from business activities | 14,181,769,160.20 | 15,837,786,856.43 | |
| Cash paid for purchased commodities and accepted services | 6,376,558,265.49 | 4,745,474,004.64 | |
| Net increase in loans and advances to customers | |||
| Net increase in deposits with the central bank and interbanks | |||
| Cash paid for indemnity of original insurance contract | |||
| Net increase in lending funds |
| Cash paid for interests, fees and commissions | |||
| Cash paid for policy dividends | |||
| Cash paid to and paid for staff | 1,626,236,935.31 | 1,544,782,530.12 | |
| Tax payments | 1,433,170,290.25 | 1,602,337,342.05 | |
| Other cash paid related to operating activities | VII. 78 | 436,716,594.37 | 1,481,600,879.55 |
| Subtotal of cash outflows from business activities | 9,872,682,085.42 | 9,374,194,756.36 | |
| Net cash flow from operating activities | 4,309,087,074.78 | 6,463,592,100.07 | |
| II. Net cash flow from investment activities | |||
| Cash received from disposal of investment | 2,782,299,872.93 | 2,385,211,237.16 | |
| Cash received from investment incomes | 1,888,574,853.17 | 1,038,478,559.42 | |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 5,999,826.93 | 2,961,505.56 | |
| Net cash received from disposal of subsidiaries and other business entities | 312,672,429.53 | ||
| Other cash received related to investment activities | VII. 78 | 868,998,592.11 | 533,681,928.19 |
| Subtotal of cash inflows from investment activities | 5,545,873,145.14 | 4,273,005,659.86 | |
| Cash paid for acquisition and construction of fixed assets, intangible assets and other long-term assets | 6,594,615,778.91 | 9,721,032,984.36 | |
| Cash paid for investment | 3,591,409,587.65 | 4,544,862,444.19 | |
| Net increase in pledged loans | |||
| Net cash paid for acquisition of subsidiaries and other business entities | 808,945.02 | ||
| Other cash paid related to investment activities | VII. 78 | 10,841,593.13 | |
| Subtotal of cash outflows from investment activities | 10,197,675,904.71 | 14,265,895,428.55 | |
| Net cash flow from investment activities | -4,651,802,759.57 | -9,992,889,768.69 | |
| III. Cash flows from financing activities: | |||
| Cash received from absorbing investment | 4,815,294,000.00 | 2,020,320,900.00 | |
| Including: cash received from investment attraction of subsidiaries from minority shareholders | 615,294,000.00 | 20,320,900.00 | |
| Cash received from debts | 23,198,074,799.87 | 25,865,711,475.86 | |
| Other cash received related to financing activities | VII. 78 | 600,000,000.00 | 23,611,355.51 |
| Subtotal of cash inflows from financing activities | 28,613,368,799.87 | 27,909,643,731.37 | |
| Cash paid for settlement of debts | 17,930,375,199.78 | 21,628,955,209.32 | |
| Cash paid for dividend distribution, profit and interest | 4,422,451,766.13 | 2,632,807,836.00 | |
| Including: dividends and profits paid to minority shareholders by subsidiaries | 559,976,355.40 | 50,825,000.00 | |
| Other cash paid related to financing activities | VII. 78 | 5,497,918,450.22 | 34,075,113.39 |
| Subtotal of cash outflows from financial activities | 27,850,745,416.13 | 24,295,838,158.71 | |
| Net cash flow from financing activities | 762,623,383.74 | 3,613,805,572.66 | |
| IV. Effect of exchange rate fluctuations on cash and cash equivalents | |||
| V. Net increase in cash and cash equivalents | 419,907,698.95 | 84,507,904.04 | |
| Plus: beginning balance of cash and cash equivalents | 1,769,343,057.09 | 1,684,835,153.05 | |
| VI. Balance of ending cash and cash equivalents | 2,189,250,756.04 | 1,769,343,057.09 |
| Legal representative: Sai Zhiyi | Person in charge of accounting work: Lv Sizhong | Chief accountant: Zhou Liang | Person in charge of accounting agency: Chen Fang |
Cash Flow Statement of Parent Company
January to December 2020
Unit: yuan Currency: CNY
| Item | Note(s) | 2020 | 2019 |
| I. Net cash flow from operating activities | |||
| Cash received from selling goods and providing services | 5,367,086,927.84 | 6,811,167,767.54 | |
| Tax refunds received | |||
| Cash received from other operating activities | 1,229,452,532.93 | 744,131,984.57 | |
| Subtotal of cash inflows from business activities | 6,596,539,460.77 | 7,555,299,752.11 | |
| Cash paid for purchased commodities and accepted services | 1,000,701,125.19 | 631,960,323.03 | |
| Cash paid to and paid for staff | 1,032,932,183.82 | 942,781,230.42 | |
| Tax payments | 917,646,750.36 | 870,020,104.19 | |
| Other cash paid related to operating activities | 1,450,678,427.20 | 440,791,484.16 | |
| Subtotal of cash outflows from business activities | 4,401,958,486.57 | 2,885,553,141.80 | |
| Net cash flow from operating activities | 2,194,580,974.20 | 4,669,746,610.31 | |
| II. Net cash flow from investment activities | |||
| Cash received from disposal of investment | 5,492,147,931.56 | 886,960,057.16 | |
| Cash received from investment incomes | 1,488,794,222.26 | 924,058,437.87 | |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 2,205,830.27 | ||
| Net cash received from disposal of subsidiaries and other business entities | 65,246,799.26 | ||
| Other cash received related to investment activities | 311,304.58 | 2,100,196,341.45 | |
| Subtotal of cash inflows from investment activities | 6,983,459,288.67 | 3,976,461,635.74 | |
| Cash paid for acquisition and construction of fixed assets, intangible assets and other long-term assets | 5,822,609,057.35 | 8,180,765,179.00 | |
| Cash paid for investment | 6,243,449,819.42 | 3,986,762,409.08 | |
| Net cash paid for acquisition of subsidiaries and other business entities | |||
| Other cash paid related to investment activities | 3,442,519.54 | 2,544,376,907.03 | |
| Subtotal of cash outflows from investment activities | 12,069,501,396.31 | 14,711,904,495.11 | |
| Net cash flow from investment activities | -5,086,042,107.64 | -10,735,442,859.37 | |
| III. Cash flows from financing |
| activities: | |||
| Cash received from absorbing investment | 3,200,000,000.00 | ||
| Cash received from debts | 22,653,574,799.87 | 22,829,811,476.86 | |
| Other cash received related to financing activities | 1,000,030,380.25 | ||
| Subtotal of cash inflows from financing activities | 26,853,605,180.12 | 22,829,811,476.86 | |
| Cash paid for settlement of debts | 20,162,945,199.78 | 14,841,431,882.32 | |
| Cash paid for dividend distribution, profit and interest | 3,431,221,857.70 | 1,970,792,643.48 | |
| Other cash paid related to financing activities | 310,663,814.22 | 34,075,113.39 | |
| Subtotal of cash outflows from financial activities | 23,904,830,871.70 | 16,846,299,639.19 | |
| Net cash flow from financing activities | 2,948,774,308.42 | 5,983,511,837.67 | |
| IV. Effect of exchange rate fluctuations on cash and cash equivalents | |||
| V. Net increase in cash and cash equivalents | 57,313,174.98 | -82,184,411.39 | |
| Plus: beginning balance of cash and cash equivalents | 870,975,280.55 | 953,159,691.94 | |
| VI. Balance of ending cash and cash equivalents | 928,288,455.53 | 870,975,280.55 |
| Legal representative: Sai Zhiyi | Person in charge of accounting work: Lv Sizhong | Chief accountant: Zhou Liang | Person in charge of accounting agency: Chen Fang |
Consolidated Statement of Changes in Owner’s Equity
January to December 2020
Unit: yuan Currency: CNY
| Item | 2020 | ||||||||||||||
| Equities attributable to the owners of parent company | Minority equity | Total owner's equity | |||||||||||||
| Paid-in capital (or capital stock) | Other equity instrument | Capital reserves | Minus: treasury stocks | Other comprehensive income | Appropriate reserve | Surplus reserves | General risk reserves | Adjustment of the undistributed profits | Others | Subtotal | |||||
| Preference shares | Perpetual debt | Others | |||||||||||||
| Prior year-end balance | 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 | 169,953.90 | 169,953.90 | 163,289.04 | 333,242.94 | |||||||||||
| Corrections of prior period errors | |||||||||||||||
| Business consolidation under control | 677,225,170.51 | 82,671,061.69 | 394,754,640.88 | 1,154,650,873.08 | 1,832,161,977.40 | 2,986,812,850.48 | |||||||||
| 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 | 18,370,376,516.90 | 33,275,672,547.30 | 4,098,245,449.12 | 37,373,917,996.42 | |||||
| III. Amount of increase or decrease in the current period (decrease is shown with a "-" sign) | 1,200,000,000.00 | 3,088,662,602.61 | 57,335,983.09 | 12,983,394.86 | 224,206,066.70 | 116,101,651.69 | 1,824,910,775.83 | 745,653,404.05 | 1,079,257,371.78 | ||||||
| (I) Total comprehensive income | 57,335,983.09 | 2,038,999,018.13 | 1,981,663,035.04 | 100,436,381.72 | 2,082,099,416.76 | ||||||||||
| (II) Capital invested and reduced by owners | 1,200,000,000.00 | 3,088,662,602.61 | 1,888,662,602.61 | 963,432,124.32 | 925,230,478.29 | ||||||||||
| 1. Common shares contributed by owners | 9,220,036.64 | 9,220,036.64 | 753,879,017.90 | 763,099,054.54 | |||||||||||
| 2. Capital contributed by the holders of other equity instruments | 1,200,000,000.00 | 1,200,000,000.00 | 1,200,000,000.00 | ||||||||||||
| 3. Amounts of share-based payments recognized in owners’ equity | 18,429,300.00 | 18,429,300.00 | 18,429,300.00 | ||||||||||||
| 4. Others | 3,116,311,939.25 | 3,116,311,939.25 | 209,553,106.42 | 2,906,758,832.83 | |||||||||||
| (III) Profit distribution | 224,206,066.70 | 2,155,100,669.82 | 1,930,894,603.12 | 331,206,564.05 | 2,262,101,167.17 | ||||||||||
| 1. Withdraw of surplus reserves | 224,206,066.70 | 224,206,066.70 | |||||||||||||
| 2. Withdrawn general risk reserve | |||||||||||||||
| 3. Profits distributed to owners(or shareholders) | 1,828,243,025.66 | 1,828,243,025.66 | 331,206,564.05 | 2,159,449,589.71 | |||||||||||
| 4. Others | 102,651,577.46 | 102,651,577.46 | 102,651,577.46 | ||||||||||||
| (IV) Internal carry-over of owner's equity | |||||||||||||||
| 1. Conversion of capital reserves into paid-in capital (or share capital) | |||||||||||||||
| 2. Conversion of surplus reserves into paid-in capital (or share capital) | |||||||||||||||
| 3. Surplus reserves offsetting losses | |||||||||||||||
| 4. Carry-forward of | |||||||||||||||
| retained earnings from changes of defined benefit plan | |||||||||||||||
| 5. Carry-forward of retained earnings from other comprehensive incomes | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserves | 12,983,394.86 | 12,983,394.86 | 12,991,462.06 | 25,974,856.92 | |||||||||||
| 1. Amount withdrawn in the current period | 16,222,137.30 | 16,222,137.30 | 16,953,111.65 | 33,175,248.95 | |||||||||||
| 2. Amount used in the current period | 3,238,742.44 | 3,238,742.44 | 3,961,649.59 | 7,200,392.03 | |||||||||||
| (VI) Others | |||||||||||||||
| IV. Ending balance of the current period | 4,811,165,857.00 | 3,200,000,000.00 | 1,748,100,650.09 | 47,382,900.51 | 95,654,456.55 | 3,388,948,843.13 | 18,254,274,865.21 | 31,450,761,771.47 | 4,843,898,853.17 | 36,294,660,624.64 |
| Item | 2019 | ||||||||||||||
| Equities attributable to the owners of parent company | Minority equity | Total owner's equity | |||||||||||||
| Paid-in capital (or capital stock) | Other equity instrument | Capital reserves | Minus: treasury stocks | Other comprehensive income | Appropriate reserve | Surplus reserves | General risk reserves | Adjustment of the undistributed profits | Others | Subtotal | |||||
| Preference shares | Perpetual debt | Others | |||||||||||||
| I. Balance at the end of the last year | 4,811,165,857.00 | 3,273,636,101.65 | 6,823,118.95 | 2,892,790,737.78 | 16,276,718,131.16 | 27,261,133,946.54 | 2,054,284,178.79 | 29,315,418,125.33 | |||||||
| Plus: changes in accounting policies | |||||||||||||||
| Corrections of prior period errors | |||||||||||||||
| Business consolidation under control | 677,225,170.51 | 254,998.85 | 65,869,092.33 | 317,793,490.49 | 1,061,142,752.18 | 1,757,501,359.80 | 2,818,644,111.98 | ||||||||
| Others | |||||||||||||||
| II. Beginning balance of this year | 4,811,165,857.00 | 3,950,861,272.16 | 7,078,117.80 | 65,869,092.33 | 2,892,790,737.78 | 16,594,511,621.65 | 28,322,276,698.72 | 3,811,785,538.59 | 32,134,062,237.31 | ||||||
| Amount of increase or decrease in the current period (decrease is shown with a "-" sign) | 2,000,000,000.00 | 885,901,980.54 | 2,874,964.78 | 16,801,969.36 | 271,952,038.65 | 1,776,034,849.15 | 4,953,565,802.48 | 286,623,199.57 | 5,240,189,002.05 | ||||||
| (I) Total comprehensive income | 2,874,964.78 | 3,126,071,417.08 | 3,128,946,381.86 | 84,862,852.20 | 3,213,809,234.06 | ||||||||||
| (II) Capital invested and reduced by owners | 2,000,000,000.00 | 885,901,980.54 | 2,885,901,980.54 | 230,664,323.74 | 3,116,566,304.28 | ||||||||||
| 1. Common shares contributed by owners | 19,817,127.92 | 19,817,127.92 | |||||||||||||
| 2. Capital contributed by the holders of other equity instruments | 2,000,000,000.00 | 2,000,000,000.00 | 2,000,000,000.00 | ||||||||||||
| 3. Amounts of share-based payments recognized in owners’ equity | |||||||||||||||
| 4. Others | 885,901,980.54 | 885,901,980.54 | 210,847,195.82 | 1,096,749,176.36 | |||||||||||
| (III) Profit distribution | 271,952,038.65 | 1,350,036,567.93 | 1,078,084,529.28 | 46,127,331.62 | 1,124,211,860.90 | ||||||||||
| 1. Withdraw of surplus reserves | 271,952,038.65 | 271,952,038.65 | |||||||||||||
| 2. Withdrawn general risk reserve | |||||||||||||||
| 3. Profits distributed to owners(or shareholders) | 1,068,786,407.72 | 1,068,786,407.72 | 46,127,331.62 | 1,114,913,739.34 | |||||||||||
| 4. Others | 9,298,121.56 | 9,298,121.56 | 9,298,121.56 | ||||||||||||
| (IV) Internal carry-over of owner's equity | |||||||||||||||
| 1. Conversion of capital reserves into paid-in capital (or share capital) | |||||||||||||||
| 2. Conversion of surplus reserves into paid-in capital (or share capital) | |||||||||||||||
| 3. Surplus reserves offsetting losses | |||||||||||||||
| 4. Carry-forward of retained earnings from changes of defined benefit plan | |||||||||||||||
| 5. Carry-forward of retained earnings from other comprehensive incomes | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserves | 16,801,969.36 | 16,801,969.36 | 17,223,355.25 | 34,025,324.61 | |||||||||||
| 1. Amount withdrawn in the current period | 17,238,342.53 | 17,238,342.53 | 18,062,584.76 | 35,300,927.29 | |||||||||||
| 2. Amount used in the current period | 436,373.17 | 436,373.17 | 839,229.51 | 1,275,602.68 | |||||||||||
| (VI) Other | |||||||||||||||
| IV. Ending balance of the current period | 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 | 18,370,546,470.80 | 33,275,842,501.20 | 4,098,408,738.16 | 37,374,251,239.36 |
| Legal representative: Sai Zhiyi | Person in charge of accounting work: Lv Sizhong | Chief accountant: Zhou Liang | Person in charge of accounting agency: Chen Fang |
Change Statement of Owner’s Equity in Parent Company
January to December 2020
Unit: yuan Currency: CNY
| Item | 2020 | ||||||||||
| Paid-in capital (or share capital) | Other equity instrument | Capital reserves | Minus: treasury stocks | Other comprehensive income | Appropriate reserve | Surplus reserves | Undistributed profits | Total owner's equity | |||
| Preference shares | Perpetual debt | Others | |||||||||
| I. Balance at the end of the 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 | |||||||||||
| Corrections of prior period errors | |||||||||||
| 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. Increases/decreases in the current period (“-” for decreases) | 3,200,000,000.00 | 1,821,031,775.36 | 58,407,832.52 | 224,206,066.70 | 171,934,497.00 | 1,716,700,955.82 | |||||
| (1) Total comprehensive income | 58,407,832.52 | 2,242,060,666.99 | 2,183,652,834.47 | ||||||||
| (2) Capital contributed or reduced by owners | 3,200,000,000.00 | 1,821,031,775.36 | 1,378,968,224.64 | ||||||||
| 1. Common shares contributed by owners | |||||||||||
| 2 Capital contributed by the holders of other equity instruments | 3,200.00 0,000.00 | 3,200,000,000.00 | |||||||||
| 3. Amounts of share-based payments recognized in owners’ equity | 18,429,300.00 | 18,429,300.00 | |||||||||
| 4. Others | 1,839,461,075.36 | 1,839,461,075.36 | |||||||||
| (III) Profit distribution | 224,206,066.70 | 2,070,126,169.99 | 1,845,920,103.29 | ||||||||
| 1. Withdraw of surplus reserves | 224,206,066.70 | 224,206,066.70 | |||||||||
| 2 Profits distributed to owners(or shareholders) | 1,828,243,025.66 | 1,828,243,025.66 | |||||||||
| 3. Others | 17,677,077.63 | 17,677,077.63 | |||||||||
| (IV) Internal carry-forward of owners’ equity | |||||||||||
| 1. Conversion of capital reserves into paid-in capital (or share capital) | |||||||||||
| 2. Conversion of surplus reserves into paid-in capital (or share capital) | |||||||||||
| 3. Surplus reserves offsetting losses | |||||||||||
| 4. Carry-forward of retained earnings from changes of defined benefit plan | |||||||||||
| 5 Carry-forward of retained earnings from other comprehensive incomes | |||||||||||
| 6. Others | |||||||||||
| (V) Appropriate reserve | |||||||||||
| 1. Amount withdrawn in the current period | |||||||||||
| 2. Amount used in the current period | |||||||||||
| (VI) Others | |||||||||||
| IV. Ending balance of the current period | 4,811,165,857.00 | 3,200,000,000.00 | 1,902,762,862.20 | 48,454,749.94 | 3,360,606,953.46 | 16,232,090,812.89 | 29,458,171,735.61 | ||||
| Item | 2019 | ||||||||||
| Paid-in capital (or share capital) | Other equity instrument | Capital reserves | Minus: treasury stocks | Other comprehensive income | Appropriate reserve | Surplus reserves | Undistributed profits | Total owner's equity | |||
| Preference shares | Perpetual debt | Others | |||||||||
| I. Balance at the end of the 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 | |||||||||||
| Corrections of prior period errors | |||||||||||
| 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. Increases/decreases in the current period (“-” for decreases) | 592,003,497.64 | 3,129,963.63 | 271,952,038.65 | 1,418,637,400.43 | 2,285,722,900.35 | ||||||
| (1) Total comprehensive income | 3,129,963.63 | 2,719,520,386.47 | 2,722,650,350.10 | ||||||||
| (2) Capital contributed or reduced by owners | 592,003,497.64 | 34,336,707.01 | 626,340,204.65 | ||||||||
| 1. Common shares contributed by owners | |||||||||||
| 2. Capital contributed by the holders of other equity instruments | |||||||||||
| 3. Amounts of share-based payments recognized in owners’ equity | |||||||||||
| 4. Others | 592,003,497.64 | 34,336,707.01 | 626,340,204.65 | ||||||||
| (III) Profit distribution | 271,952,038.65 | 1,335,219,693.05 | 1,063,267,654.40 | ||||||||
| 1. Withdraw of surplus reserves | 271,952,038.65 | 271,952,038.65 | |||||||||
| 2. Profits distributed to owners(or shareholders) | 1,063,267,654.40 | 1,063,267,654.40 | |||||||||
| 3. Others | |||||||||||
| (IV) Internal carry-forward of owners’ equity | |||||||||||
| 1. Conversion of capital reserves into paid-in capital (or share capital) | |||||||||||
| 2. Conversion of surplus reserves into paid-in capital (or share capital) | |||||||||||
| 3. Surplus reserves offsetting losses | |||||||||||
| 4. Carry-forward of retained earnings from changes of defined benefit plan | |||||||||||
| 5. Carry-forward of retained earnings from other comprehensive incomes | |||||||||||
| 6. Others | |||||||||||
| (V) Appropriate reserve | |||||||||||
| 1. Amount withdrawn in the current period | |||||||||||
| 2. Amount used in the current period | |||||||||||
| (VI) Others | |||||||||||
| IV. Ending balance of the current period | 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 | |||||
| Legal representative: Sai Zhiyi | Person in charge of accounting work: Lv Sizhong | Chief accountant: Zhou Liang | Person in charge of accounting agency: Chen Fang |
III. Company Overview
1. Company profile
√ Applicable □ Not applicable
Shandong Hi-Speed Co., Ltd. (hereinafter referred to as “the Company” or “Company”, collectively referredto as “the Group” when including subsidiaries), formerly known as Shandong Infrastructure Co., Ltd., wasestablished on November 16, 1999 by means of sponsoring under the approval of the State Economic andTrade Commission of the People’s Republic of China in the document GJMQG [1999] No. 1073, withShandong Hi-Speed Co., Ltd. (now renamed as Shandong Hi-Speed Group Co., Ltd. (hereinafter referred toas “Shandong Hi-Speed Group”)) and Huajian Transportation Economic Development Center of the Ministryof Communications (now renamed as China Merchants Expressway Network & Technology Holdings Co.,Ltd.) as sponsors. Shandong Hi-Speed Co., Ltd. and Huajian Transportation Economic Development Centerof the Ministry of Communications hold 2,097,050,000 shares and 761,750,000 shares respectively,accounting for 73.35% and 26.65% of the total share capital. The company obtained the business license ofcorporate legal person with registration number 3700001804559 (now changed to unified social credit code:
91370000863134717K).In January 2002, according to the document ZJFXZ[2002] No. 6 issued by China Securities RegulatoryCommission, the Company issued 505,000,000 ordinary shares to the public. After the issuance, theCompany’s total share capital changed to 3,363,800,000 shares, and the share capital structure changed to:
Shandong Hi-Speed Co., Ltd. held 2,097,050,000 shares, accounting for 62.34%; Huajian TransportationEconomic Development Center held 761,750,000 shares, accounting for 22.65%, and 505,000,000 socialpublic shares, accounting for 15.01%.On May 23, 2006, in accordance with the resolution of the 2006 First extraordinary general meeting ofshareholders of the Company, the Company changed its name to “Shandong Hi-Speed Co., Ltd.” andregistered at the industrial and commercial authority.On July 5, 2011, in accordance with the Reply of Approving Shandong Hi-Speed Co., Ltd. of issuing sharesto Shandong Hi-Speed Group Co., Ltd. to purchase assets (ZJXK [2011] No. 1007) and the Replay ofApproving the exemption from the obligation of Shandong Hi-Speed Group Co., Ltd. to acquire shares ofShandong Hi-Speed Co., Ltd. (ZJXK [2011] No. 1008) issued by China Securities Regulatory Commission,the Company issued 1,447,365,857 shares to Shandong Hi-Speed Group Co., Ltd. non-publicly.On April 11, 2012, in accordance with the resolutions of the 2012 First extraordinary general meeting ofshareholders of the Company, the Company changed its name to “Shandong Hi-Speed Co., Ltd.” andregistered at the industrial and commercial authority.As of December 31, 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.Registered address of headquarter: No.5006 Aoti Middle Road, Jinan City, Shandong Province.Name of Legal Representative: Sai ZhiyiThe Group is mainly engaged in the investment, operation and management of toll roads, bridges and tunnelinfrastructure and related businesses. The group is also engaged in expressway service area and supportingservices, property management, real estate investment and development, tourism development and otherbusinesses. The current business scope of the company mainly includes investment, management,maintenance, consulting services and approved charges with the high-grade highway, bridge and tunnelinfrastructure, rescue and obstacle removal, and storage (excluding dangerous chemicals); decoration; salesof building materials; investment in port, highway and waterway transportation; highway informationnetwork management; automobile cleaning. (Business requiring government approval according to law canonly be carried out when such approval from relevant department 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 15, 2044 | 318.50 |
| Relevant sections of | Phase I of Dezhou-Qihe Section of | November 17, 2022 | 89.03 |
| Beijing-Taibei Expressway | Beijing-Fuzhou Expressway | ||
| 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 High-speed Railway | 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, 2029 | 1.35 |
| Xuchang-Yuzhou Expressway | Xuchang-Yuzhou Expressway in Henan | August 28, 2036 | 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 |
V. Important accounting policies and accounting estimatesSpecific accounting policies and accounting estimate prompt:
√ Applicable □ Not applicable
Reminders on specific accounting policies and accounting estimates: the specific accounting policies andaccounting estimates formulated by the Group by referring to the relevant provisions of the accountingstandards and combing the characteristics of actual production and operation include the recognition andmeasurement of bad debt provisions for accounts receivable, measurement of issued inventories,classification of fixed assets and depreciation methods, and amortization of intangible assets, incomerecognition and measurement (including the recognition and measurement methods of items such asinventory and revenue of special business such as BOT/BT/construction contract business), etc.
1. Follow the statement on Accounting Standards for Business EnterprisesThe financial statements prepared by the company meet the requirements of the accounting standards forbusiness 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 merger under thesame control, are measured at book value in consolidated statement of Final Controlling Party of theCombined Party on merger date. The capital reserve shall be adjusted for the balance between the acquiredbook value of net assets and the paid book value of the combined consideration, while the retained earningsshall be adjusted if the capital reserve is insufficient to be offset.Identifiable assets, liabilities and contingent liabilities of the acquiree obtained from the business mergerunder different control shall be measured at fair value on the acquisition date. The merging cost is the sumof the fair value of cash or non-cash assets paid by the Group on the acquisition date for obtaining the controlright of the acquiree, liabilities issued or assumed, and equity securities issued, and direct related expensesarising from the business merger (for business merger that is achieved step by step through multipletransactions, the merging cost is the sum of cost of each individual transaction). The difference between themerger cost and the fair value of the identifiable net assets of the acquired party obtained in the merger shallbe recognized as goodwill; if the merger cost is less than the fair value of the identifiable net assets of theacquired party obtained in the merger, the fair value of the identifiable assets, liabilities and contingentliabilities obtained in the merger as well as the non cash assets of the merger consideration or the issuedequity shall be rechecked at first. After rechecking, if the merger cost is still less than the fair value share ofthe identifiable net assets of the acquired party obtained in the merger, the difference shall be included in thenon-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 consolidated financialstatements.In the preparation of consolidated financial statements, if the accounting policies or accounting periodsadopted by subsidiaries and the Company are inconsistent, necessary adjustments shall be made to thefinancial statements of subsidiaries in accordance with the Company's accounting policies or accountingperiods.All significant internal transactions, current balances and unrealized profits within the scope of the mergerare offset at the time of preparation of the consolidated statements. The shares among the owner's rights and
interests of a subsidiary that do not belong to the parent company, and the shares of minority stockholder'sinterest in current net profit and loss, other comprehensive income and total comprehensive income are listedin the item of "minority stockholder's interest, minority interest income, other comprehensive incomesattributable to minority shareholders and total comprehensive incomes attributable to minority shareholders"in the consolidated financial statement.The business performance and cash flow of the subsidiary obtained from the business merger under the samecontrol are included into the consolidated financial statement since the beginning of current period of themerger. When compiling the comparative consolidated financial statements, the adjustment on relevant itemsof the previous year's financial statements is deemed as that the report subject formed after the merger hasexisted since the Final Controlling Party started to control.The equity of the investee under the common control is acquired step by step through multiple transactions,and business combination is finally achieved. When preparing the consolidated statements, it shall beregarded as adjustment to the current state when the ultimate controlling party starts to control. Thecomparative statements shall be prepared not earlier than the point at which the Group and the combinedparty are both under the control of the ultimate controlling party. The relevant assets and liabilities of thecombined party shall be incorporated into the comparative statements of the Group's consolidated financialstatements, and the net assets increased by the combination shall be adjusted to the relevant items underowners' equity in the comparative statements. In order to avoid double calculation of the net asset value ofthe combined party, the long-term equity investments held by the Group prior to realization of thecombination and the relevant profits and losses, other comprehensive income and other changes in net assetshave been recognized from the date of acquisition of the original equity or the date on which the Group andthe combined party are under the ultimate control of the same party (whichever is later) to the date ofcombination shall be separately written off against the retained earnings at the beginning of the comparativestatement period and the profits and losses of the current period.The business performance and cash flow of the subsidiary obtained from the business merger under differentcontrol are included into the consolidated financial statement from the day when the Group gained the controlright. In preparing consolidated financial statements, the financial statements of the subsidiary are adjustedon the basis of the fair value of the identifiable assets, liabilities and contingent liabilities determined on theacquisition date.The equity of the invested company not under the same control is acquired step by step through multipletransactions to form business merger. While preparing the consolidated statement, the equity held by theacquired party before the purchase date shall be remeasured according to the fair value of the equity on thepurchase date, and the difference between the fair value and its book value shall be included in the currentinvestment income; If the equity held by the acquired party before the relevant purchase date involves othercomprehensive income under the equity method accounting and other changes in the owner's equity exceptfor net profit and loss, other comprehensive income and profit distribution, the same shall be converted intoinvestment profit and loss in the current period on the purchase date. Other comprehensive income generatedfrom the changes in net liabilities or net assets of the defined benefit plan measured by the invested entityshall be excluded.The Group will partially dispose of long-term equity investments in its subsidiaries without losing control.In consolidated financial statements, the capital premium or capital stock premium will be adjusted accordingto the balance between disposal price and net asset share of subsidiaries calculated continuously since thepurchase date or merger date corresponding to the long-term equity investments. If the capital reserve isinsufficient 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, theremaining equity shall be re-measured according to its fair value on the date of loss of control right whencompiling the consolidated financial statement. The balance that the sum of the consideration obtained fromthe disposal of equity and the fair value of the remaining equity minus the shares of net assets calculatedcontinuously from the purchase date or merger date of the original subsidiary according to the originalshareholding ratio, shall be included into the investment profit and loss of the current period of losing thecontrol right, and at the same time the goodwill will be written down. Other comprehensive incomes relatedto the equity investment of the original subsidiary are converted into current investment gains and losseswhen the control right is lost.If the group disposes the equity investment of subsidiaries step by step through multiple transactions untillosing the control and if the transactions of disposing the equity investment of subsidiaries until losing thecontrol belong to the package deal, all transactions shall be treated as one transaction for accounting purpose;however, before the loss of control, the difference between each disposal price and the share of net assets ofthe subsidiary corresponding to the disposal investment shall be recognized as other comprehensive income
in the consolidated financial statements, and shall be transferred into the investment profit and loss of thecurrent 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. As for the items of a jointventure, the Group, as a party of the joint venture, recognizes the assets held and liabilities assumed separately,recognizes the assets held and liabilities assumed on a share basis, and recognizes relevant revenue andexpenses separately or on a share basis as agreed. Where the purchase or sale of assets does not constitutebusiness with the joint operation, only the profits and losses arising from the transaction belonging to theother participants in the joint operation shall be recognized.
8. Criteria for determining cash and cash equivalents
The cash equivalents refer to the investments that are held by an enterprise with a short term (generally withinthree months from the date of purchase) and strong liquidity, and that are easy to be converted into the cashof known amounts with little risk of value change.
9. Foreign currency transaction and translation of foreign currency statement
□ Applicable √ Not applicable
10. Financial instruments
√ Applicable □ Not applicable
When the Group becomes a party to a financial instrument contract, it recognizes a financial asset or financialliability.
(1) Financial assets
1) Classification, recognition basis and measurement method of financial assetsAccording to the business model of managing financial assets and the contractual cash flow characteristicsof financial assets, the Group classifies financial assets into financial assets measured at amortized cost,financial assets measured at fair value with changes included in other comprehensive income and financialassets measured at fair value with changes included in current profit and loss.The Group classifies the financial assets that meet the following conditions as the financial assets measuredat amortized cost: ①The business model managing the financial asset is to receive contract cash flows. ②The contractual terms of the financial asset provide that the cash flow generated on a particular date is onlythe payment of the principal and interest based on the outstanding principal amount. Such financial assets areinitially measured at the fair value, and relevant transaction expenses are included in the initially recognizedamount; subsequent measurement shall be made at the amortized cost. Except for the designated hedged item,the difference between the initial amount and the due amount shall be amortized according to the actualinterest method, and the amortization, impairment, exchange gains and losses, as well as the gains or lossesarising from the derecognition shall be included in the current profits and losses.The Group classifies the financial assets that meet the following conditions as the financial assets that aremeasured at fair value and whose changes are included in other comprehensive income: ①The businessmodel managing the financial asset is to receive the contract cash flows and to sell the financial asset. ②Thecontractual terms of the financial asset provide that the cash flow generated on a particular date is only thepayment of the principal and interest based on the outstanding principal amount. Such financial assets areinitially measured at the fair value, and relevant transaction expenses are included in the initially recognizedamount; Except for those designated as hedged items, such financial assets, except for credit impairment lossor gain, exchange gain or loss and interest of such financial assets calculated according to the actual interestmethod, all other gains or losses generated shall be included in other comprehensive income; when thefinancial assets are terminated with recognition, the accumulated gains or losses previously included in othercomprehensive income shall be transferred from other comprehensive income into the current profit and loss.The Group recognizes interest income in accordance with the actual interest method. The interest income iscalculated and determined by multiplying book balance of the financial asset by the actual interest rate, unlessit is under the circumstances as follows: ① The interest income of a purchased or original financial asset thathas undergo credit impairment shall, since its initial recognition, be calculated and determined on the basisof amortized cost of the financial asset and the credit-adjusted real interest rate. ②The interest income of apurchased or original financial asset without credit impairment, but which will undergo credit impairment inthe subsequent periods, shall be calculated and determined in accordance with the amortized cost and the
actual interest rate of the financial asset during the subsequent periods.The Group designates non-trading equity instrument investment as the financial asset measured at fair valuewith its changes included in other comprehensive income. Once the designation is made, it is not allowed tobe withdrawn. Non-trading equity instrument investment designated by the group and measured at fair valuewith its changes being included in other comprehensive income is initially measured at fair value, andrelevant 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 current profit and loss except dividends(except for the recovered investment cost) are included in the other comprehensive income and shall not betransferred into current profit and loss. When the recognition is terminated, the accumulated gains or lossespreviously included in other comprehensive income shall be transferred from other comprehensive incomeinto retained earnings.Financial assets other than those classified as financial assets measured at amortized cost and those classifiedas financial assets measured at fair value with changes included in other comprehensive income. The Groupclassifies it as the financial asset measured at fair value through profit or loss. Such financial assets areinitially measured at the fair value, and relevant transaction expenses are included in the current profit andloss; 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 the samecontrol constitutes the financial asset, the financial asset can be classified as the financial asset measured atfair value with its changes included in the current profit and loss.When the group changes the business model of managing financial assets, all affected related financial assetswill be reclassified.
2) Recognition basis and measurement method of transfer of financial assetsThe Group will derecognize the financial assets that meet one of the following conditions: ①The contractualright to receive the cash flow of the financial asset terminates; ②When a financial asset is transferred, theGroup transfers almost all risks and rewards of ownership of the financial asset; ③ When a financial asset istransferred, the Group neither transfers nor retains almost all the risks and rewards of ownership of thefinancial asset, nor retains control over the financial asset;If the overall transfer of financial assets meets the conditions for derecognition, the difference between thebook value of the transferred financial assets and the sum of the consideration received as a result of thetransfer and the amount corresponding to the terminated recognition part of the accumulative amount of thechanges in the fair value originally included in other comprehensive income (according to the terms of thecontract involving the transferred financial assets, the cash flow generated on the specific date is only for theprincipal and interest due to the outstanding principal) shall be included in the current profit and loss.If the partial transfer of financial assets meets the conditions for derecognition, the overall book value of thetransferred financial assets shall be apportioned according to their respective relative fair values between thederecognized part and the non-derecognized part, and difference between the sum of the considerationreceived as a result of the transfer and the accumulative amount of changes in fair value originally includedin other comprehensive income that shall be apportioned to the final recognized part and the total book valueof the apportioned financial assets mentioned above (according to the contract terms involving the transferredfinancial assets, the cash flow generated on the specific date is only the payment of the principal and theinterest based on the outstanding principal)shall be included in the current profit and loss.
(2) Financial liability
1) Classification, recognition basis and measurement method of financial liabilitiesFinancial liabilities of the Group are classified into financial liabilities measured at fair value with changeincluded 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 and otherfinancial liabilities include trading financial liabilities and financial liabilities measured at fair value withchange 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 method according toamortized costs. The Group classifies financial liabilities as the financial liabilities measured at amortizedcost, except for the following: ①The financial liabilities measured at fair value and whose changes arerecorded in the current profit and loss, including the transaction financial liabilities (including the derivativesbelonging to the financial liabilities), and the financial liabilities designated to be measured at fair value andwhose changes are recorded in current profit and loss. ②The financial liabilities formed by transfer of thefinancial assets that do not meet the conditions for de-recognition or the continuous involvement of the
transferred financial assets. ③The financial guarantee contracts that do not fall under ① or ② above, andthe loan commitments that do not fall under ① above to borrow money at a below-market rate.The financial liabilities formed by the contingent consideration recognized by the buyer in the businesscombination not under the same control shall be disposed for accounting purpose according to the fair valuemeasurement and the change of which shall be included in the current profit and loss.
2) De-recognition criteria of financial liabilities
When present obligations of a financial liability are wholly or partly dissolved, the financial liability or partwith dissolved obligations 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 different fromcontract clauses of current financial liability, current financial liability shall be de-recognized and at the sametime, new financial liability shall be recognized. If the group makes substantial modification to all or part ofthe contract terms of the existing financial liabilities, the recognition of the existing financial liabilities orpart of them shall be terminated, and the financial liabilities after the modification of the terms shall berecognized as the new financial liability. Balance between book value of de-recognized part and paidconsideration is included into current profit and loss.
3) Recognition method of fair value of financial asset and financial liabilityThe Group measures the fair value of financial assets and financial liabilities at the price of the main market.If there is no main market available, the Group measures the fair value of financial assets and financialliabilities at the price of the most favorable market and adopts the applicable valuation technology withenough data and other information support being available. The input value for fair value measurement isdivided into three levels, that is, the first-level input value is the unadjusted quoted price in the active marketfor the same asset or liability that can be obtained on the measurement date; the second-level input value isthe direct or indirect observable input value of related assets or liabilities except the first-level input value;and the third-level input value is the unobservable input value of the related asset or liability. The group givespriority to the first level of input value, and then uses the third level input value. The level of fair valuemeasurement results shall be determined by the lowest level of input value which is of great significance tothe 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 estimate ofthe fair value within this range, the cost can represent the appropriate estimate of the fair value within therange.
4) Offset of financial asset and financial liability
Financial assets and financial liabilities of the Group are respectively listed in balance sheet, which do notoffset mutually. However, if the following conditions are simultaneously met, they shall be shown in thebalance sheet with the net amount after mutual offset: (1) The Group has the legal right to set off therecognized amount, and this legal right is currently enforceable; (2) The Group plans to settle on a net basis,or simultaneously realize the financial asset and pay off the financial liability.
5) Differentiation of financial liability and equity tool and relevant treatment methodThe Group differentiates between financial liabilities and equity instruments according to followingprinciples: (1) If the Group cannot unconditionally avoid fulfilling a contractual obligation by delivering cashor other financial assets, such contractual obligation meets the definition of a financial liability. Althoughsome financial instruments do not explicitly contain terms and conditions for the obligation to deliver cashor other financial assets, it is possible that contractual obligations may be indirectly formed through otherterms and conditions. (2) If a financial instrument must or can be settled with the Group's own equityinstrument, consideration shall be given to whether the Group's own equity instrument used to settle theinstrument is used as a substitute for cash or other financial assets or to give holder of the instrument residualequity in the issuer's assets after all liabilities have been deducted. If it is the former, the instrument shall bethe issuer’s financial liability; if it is the latter, the instrument shall be the issuer’s equity instrument. Undersome conditions, a contract of financial instrument specifies that the Group shall or can settle the financialinstrument with its equity tool and amount of contract right or contract obligation is equal to the quantity ofequity tool that can be obtained or shall be delivered multiplied by fair value during settlement; therefore, thecontract is classified into financial liability contract no matter amount of the contract right or obligation isfixed or will change completely or partly with variation of variable except for market price of equity tool ofthe Group (for example, rate, price of certain goods or price of certain financial instrument).When the Group classifies financial instrument in consolidated statement (or its components), all clauses andconditions reached among group members and financial instruments holders shall be considered. If the Group
assumes the obligation to deliver cash, other financial assets or settle accounts in other ways that result in theinstrument becoming a financial liability as whole due to the instrument, the instrument shall be classified asa financial liability.Where financial instrument or its component belongs to financial liability, relevant interest, dividend (stockdividend), gains or loss, gain or loss of redemption or refinancing assets will be included into current profitsand losses.Where financial instrument or its component belongs to equity tool, the Group will treat it as equity changeand 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 notes receivable
√ Applicable □ Not applicable
No matter whether there is significant financing component or not, the Group always measures its lossreserves in accordance with the amount equivalent to the expected credit loss in the whole duration for thenotes receivable formed by transaction regulated by Accounting Standards for Business Enterprises No.14-Income Standards.When a single financial asset cannot assess the information of expected credit loss at a reasonable cost, theGroup will divide the notes receivable and receivables into several portfolios according to the credit riskcharacteristics, and calculate the expected credit loss on the basis of the portfolios. The basis for determiningthe portfolios 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 (inclusive) | 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 |
| More than 5 years | 100 |
| Name of combination | Basis to determine the combinations |
| Related party combination | All related party customers |
| Third party combination | All third parties |
For the accounts receivable divided into combinations, the Group calculates the expected credit loss byreferring to the historical credit loss experience, combining the current situation and the forecast of the futureeconomy.Among them, the expected credit loss rate of the third-party portfolio is as follows:
| Aging | Expected credit loss rate (%) |
| Within 1 year (inclusive) | 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 |
| More than 5 years | 100 |
| Item | Basis to determine the combinations | |
| Related party combination | All related party customers | |
| Third party combination | All third parties | |
| Where, the expected credit loss rate of the third-party combination is as follows: | ||
| Aging | Expected credit loss rate (%) | |
| Within 1 year (inclusive) | 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 |
| More than 5 years | 100 |
√ Applicable □ Not applicable
The Group measures the creditors’ investment loss reserve in accordance with the following circumstances:
① the Group measures the loss reserves for the financial assets whose credit risk has not increasedsignificantly since the initial recognition in accordance with the expected amount of credit loss in the next 12months; ② the Group measures the loss reserves for the financial assets whose credit risk has increasedsignificantly since the initial recognition in accordance with the amount equivalent to the expected credit losswithin the entire duration of the financial instrument; ③ the Group measures the loss reserves for thepurchased or original financial assets that have undergone credit impairment in accordance with the amountequivalent to the expected credit loss within the entire duration.
19. Other investment on bonds
(1) The determination method and accounting disposal method of expected credit loss of other debtinvestments.
√ Applicable □ Not applicable
The Group measures other creditors’ investment loss reserves in accordance with the following circumstances:
① the Group measures the loss reserves for the financial assets whose credit risk has not increasedsignificantly since the initial recognition in accordance with the expected amount of credit loss in the next 12months; ② the Group measures the loss reserves for the financial assets whose credit risk has increasedsignificantly since the initial recognition in accordance with the amount equivalent to the expected credit losswithin the entire duration of the financial instrument; ③ the Group measures the loss reserves for thepurchased or original financial assets that have undergone credit impairment in accordance with the amountequivalent to the expected credit loss within the entire duration.The Group adjusts other comprehensive income while recording impairment loss or gain into current profitand loss.
20. Long-term receivables
(1) Determination method and accounting disposal method of expected credit loss of long-termreceivables.
□ Applicable √ Not applicable
21. Long-term equity investments
√ Applicable □ Not applicable
The long-term equity investment of the Group mainly refers to the investment in subsidiaries and associatedenterprises.When the Group directly or indirectly owns more than 20% (including) but less than 50% voting rights ofthe investee, it is generally considered that the Group is able to exercise significant influence over the investee.In case of holding less than 20% of the voting rights of the invested entity, it is also necessary tocomprehensively consider the facts and situations such as sending representatives to the board of directors orsimilar authorities of the invested entity, or participating in the financial and operational policy-makingprocess of the invested entity, or carrying out important transactions with the invested entity, or sendingmanagement personnel to the invested entity, or providing key technical information to the invested entityhave a significant impact on the invested entity.The subsidiaries of the Group has the right of control on the invested entity. For long-term equity investmentacquired by business combination under the same control, the share of book value of the net assets of thecombined party in the ultimate consolidated financial statements of the controller on the date of merger shallbe taken as the initial investment cost of the long-term equity investment. If book value of the net assets ofthe merged party on the date of merger is negative, the cost of long-term equity investment shall berecognized as zero.If the company obtains the equity of the invested entity under the same control step by step through multipletransactions, and finally forms the business combination, it shall supplement and disclose the disposal methodof long-term equity investment in the financial statement of the parent company during the reporting periodwhen the right of control is obtained. For example, if the equity of the invested entity under the same controlis acquired step by step through multiple transactions, and the business combination is finally formed, whichbelongs to the package deal, the Group will take all transactions as one transaction obtaining the control rightfor accounting purpose. If it is not a package deal, the share of the book value of the merged party's net assetsin the consolidated financial statements of final controlling party after the merger shall be taken as the initialinvestment 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 equity investment before the merger plus thebook value of the newly paid consideration on the merger date shall be adjusted for capital reserve. If thecapital reserve is insufficient for offset, the retained earnings shall be offset.For the long-term equity investment obtained through business combination not under the same control, thecombination 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 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 during thereporting period when the right of control is obtained. For example, if the equity of the invested entity notunder the same control is acquired step by step through multiple transactions, and the business combinationis finally 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 initial investment cost calculated according to the cost method shall be the sum of the book value of theoriginally held equity investment and the newly increased investment cost. If the equity held before the dateof purchase is accounted by the equity method, the other relevant comprehensive income accounted by theoriginal equity method will not be adjusted temporarily. When disposing such investment, the accountingdisposal shall be conducted on the same basis as the direct disposal of relevant assets or liabilities by theinvested entity. If the equity held before the date of purchase is accounted for at fair value in accordance withthe Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of FinancialInstruments, the changes in accumulated fair value originally included in the other comprehensive income istransferred to the retained earnings on the date of merger.In addition to the above-mentioned long-term equity investment obtained through business combination, thelong-term equity investment obtained by cash shall be regarded as the investment cost according to theactually paid purchase price; the long-term equity investment obtained by issuing equity securities shall beregarded as the investment cost according to the fair value of issued equity securities; the value stipulated inthe investment contract or agreed value in the agreement shall be taken as the investment cost for long-termequity investment by the investor.The investment of the Group in subsidiaries is accounted by the cost method, and the investment in associatedenterprises is accounted by the equity method.For the long-term equity investment accounted for by cost method in subsequent measurements, the bookvalue of cost of the long-term equity investment should be increased in accordance with fair value of the costpaid by the additional investment and the related transaction costs incurred when the additional investmentis made. The cash dividends or profits declared to be distributed by the invested entity shall be recognized asthe current investment income according to the entitled amount.For the long-term equity investment which is calculated by the equity method in subsequent measurements,the book value of the long-term equity investment shall be increased or decreased accordingly as the owner'sequity of the investee changes. While confirming the share of the net profit and loss of the invested entity,the net profit of the invested entity shall be adjusted on the basis of the fair value of all identifiable assets atthe time of acquiring the investment. According to the accounting policies and accounting period of theGroup, offset the part of the profit and loss arising out of internal transaction with associated enterprise andthat belongs to the investing enterprise and is calculated according to the shareholding ratio. Recognitionshall 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 and the actualprice obtained into the current return on investment. If the long-term equity investment accounted by theequity method is included in the owner's equity due to other changes in the owner's equity of the investedentity except for the net profit and loss, the part originally included in the owner's equity shall be transferredinto the current investment profit and loss according to the corresponding proportion while accounting thisinvestment.If disposal of part of the equity investment causes loss of the significant influence over the investee, theresidual equity after disposal shall be accounted in accordance with the Accounting Standards for BusinessEnterprises No. 22 - Recognition and Measurement of Financial Instruments, the difference between fairvalue and carrying value of the remaining equity on the date of the loss of significant influence is includedin the current profits and losses. Other comprehensive income of the former equity investment recognized bythe equity method shall be treated on the same basis as related assets or liabilities directly disposed by theinvestee when the equity method is terminated.If disposal of part of the long-term equity investment causes loss of the control over the investee, and theresidual equity after disposal is able to exercise joint control or exert significant influence over the investee,accounting is changed to be carried out in accordance with the equity method, the difference between book
value of the disposed equity and the disposal consideration is included into the investment income, and theresidual equity is regarded to be accounted and adjusted in accordance with the equity method from the dateof acquisition; if the residual equity after disposal is unable to exercise joint control or exert significantinfluence over the investee, it shall be accounted in accordance with the Accounting Standards for BusinessEnterprises No. 22 - Recognition and Measurement of Financial Instruments, the difference between bookvalue of the disposed equity and the disposal consideration is included in the investment income, while thedifference between fair value and book value of the residual equity on the date of loss of control is includedin the current investment profits and losses.If the transactions with equity disposed by the Group step by step to the loss of control do not belong to apackage deal, each transaction shall be accounted separately. If it belongs to "package deal", all transactionsshall be accounted as one transaction for accounting purpose. However, before losing control, the differencebetween the disposal price of each transaction and the book value of the long-term equity investmentcorresponding to the disposed equity shall be recognized as other comprehensive income and shall betransferred into the current profit and loss at the time of losing control.
22. Investment real estates
(1) If the cost measurement model is adopted: depreciation or amortization methodThe Group's investment real estate includes leased buildings. The cost model is adopted for measurement:
The investment real estate of the Group is depreciated or amortized by straight line method. The estimatedservice life, net residual value ratio and annual depreciation (amortization) ratio of various types ofinvestment real estate are as follows:
| Category | Period of depreciation | Expected salvage value rate | Annual depreciation rate |
| Buildings | 20-40 | 3-5 | 2.40-4.85 |
classified depreciation life, estimated net residual value rate and depreciation rate of the remaining fixedassets of the Group are as follows:
(2) Depreciation method
√ Applicable □ Not applicable
| Category | Depreciation period (year) | Ratio of remaining value | Annual depreciation rate |
| Road property | 40-100 | 3-5 | 0.95-2.38 |
| Houses and Buildings | 3-40 | 3-5 | 2.4-32.3 |
| Mechanical equipment | 3-25 | 3-5 | 3.8-32.3 |
| Transport equipment | 3-15 | 3-5 | 6.3-32.3 |
| Electronic, electrical and communication equipment | 3-30 | 3-5 | 3.2-32.3 |
| Instrumentation and standard measuring instrument | 3-10 | 3-5 | 9.5-32.3 |
| Other Equipment | 3-15 | 3-5 | 6.3-32.3 |
expenditure beyond the asset expenditure of specific borrowings by the capitalization rate of the generaloccupied borrowings. The capitalization rate shall be determined per regular borrowings weighted averagerate.
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") obtained by BOTto participate in toll road construction business, land use rights, mining rights, exploration rights, purchasedoffice software and parking space use rights not under toll road franchise and shall be measured according tothe actual cost at the time of acquisition. Where the purchased intangible assets shall take the actual cost andother relevant expenses as the actual cost; as for the intangible assets invested by investors, the actual costshall be determined according to the value agreed in the investment contract or agreement, but if the valueagreed in the contract or agreement is not fair, the actual cost shall be determined according to the fair value;as for the intangible assets invested by the state-owned shareholders during the reconstruction of the company,the evaluation value confirmed by the state-owned asset management department shall be applied as the entryvalue.Toll road franchise refers to the franchise rights granted by the government to the Group to participate in tollroad construction by means of BOT and the Group shall be responsible for providing subsequent operationservices and charging the public for a certain period after the completion of construction. At the expirationof the franchise rights, the initial construction cost of the roads and structures to be returned to the governmentand the related land use rights by the Japanese group shall be accounted as the acquisition cost of the tollroad franchise rights; at the expiration of the franchise rights, the safety facilities, communication equipmentand charging facilities that need not be returned to the government shall be accounted as fixed assets.Before July 1, 2015, the amortization of toll road franchise is amortized by straight-line method. Since July1, 2015, the toll road franchise is amortized by traffic flow method instead of the original straight-line method,that is, the annual amortization amount is calculated according to the proportion of the actual traffic flow ina specific year and the estimated total traffic flow in the remaining toll period.The mining rights are amortized by the production method based on the proven reserves of mines.In addition to toll road franchise rights and mining rights, the classification, estimated service life andamortization method of other intangible assets of the group are as follows:
| S/N | Category of assets | Expected useful 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 |
there are signs of impairment. If the result of impairment test indicates that the recoverable amount of assetsis less than its book value, the impairment reserves are accrued at the difference and included in theimpairment losses.The recoverable amount is the higher one between the net amount after the fair value of the asset minus thedisposal expense and the current value of expected future cash flow of the asset. Asset impairment reservesshall be calculated and determined on the basis of single asset. If the recoverable value of single asset isdifficult to estimate, the recoverable amount shall be determined by the asset group of the asset. Asset groupis the minimum asset group able to create the cash flow separately.For the business goodwill individually listed in the financial statements, whether there is the impairment sign,the impairment test shall be conducted at least every year. In the impairment test, the book value of thebusiness goodwill is allocated to the asset group or asset group portfolio that is expected to benefit from thesynergistic effect of the business combination. Where the test results show that the recoverable amountcontaining the asset group or the combination of asset groups of amortized goodwill is lower than its bookvalue, the corresponding impairment losses shall be recognized. The amount of impairment losses is obtainedby deducting the book value of goodwill amortized to its asset group or combination of asset groups first,and then deducting the book values of other assets according to their proportion in the asset group orcombination of asset groups other than the goodwill.Once the above-mentioned asset impairment losses are recognized, they shall not be returned in the futureaccounting 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 have a benefitperiod of more than one year (excluding one year), which are priced at the actual cost and amortized averagelyby the straight-line method within the benefit period. If the long-term unamortized expense item cannotbenefit the future accounting period, the amortized value of the item that has not been amortized shall betransferred to the current profit and loss.
32. Contract liabilities
(1) Recognition method of contractual liabilities
√ Applicable □ Not applicable
Contract liabilities reflect the obligation of the Group to transfer goods to customers for considerationreceived or receivable from customers. If the customer has paid the contract consideration or the Group hasobtained the right to receive the contract consideration unconditionally before transferring the goods to thecustomer, the contract liability shall be recognized according to the amount received or receivable at the timeof the actual payment or the due payment, whichever comes first.
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 employment welfare,dismissal welfare and other long-term welfare.Short term salary mainly includes employee salary, bonus, allowance and subsidy, employee welfare, medicalinsurance, work-related injury insurance, maternity insurance, housing accumulation fund, labor union funds,employee education funds, short-term paid absence, etc. during the accounting period when employeesprovide services, the actual short-term salary is recognized as the liability and is included in the current profitand 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 beclassified into defined contribution plans and defined benefit plans according to the risks and obligationsundertaken by the company. As for the defined contribution plan, the contribution paid to the separate entityin exchange for the services provided by employees during the accounting period on the balance sheet dateis recognized as the liability and shall be included in the current profit and loss or related asset costs accordingto 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 compensation liabilityarising from the dismissal welfare at the earlier date of the following and shall be included in the currentprofit and loss: (1) when the company cannot unilaterally withdraw the dismissal welfare provided due to thetermination of labor relationship plan or reduction proposal; (2) when the company confirms the costs orexpenses 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 contribution plan,accounting disposal shall be carried out in accordance with the relevant provisions of defined contributionplan; for other long-term benefits, accounting disposal shall be carried out in accordance with the relevantprovisions of defined benefit plan. At the end of the reporting period, the company shall recognize theemployee 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.
(4) 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 guarantee, commercial acceptance bill discount,pending litigation or arbitration meets the following conditions at the same time, the Group will recognize itas the liability: the obligation is the current obligation undertaken by the Group; the performance of theobligation is likely to cause economic benefits out of the enterprise; the amount of the obligation can bereliably measured.
36. Share-based payment
√ Applicable □ Not applicable
The equity-settled share-based payment in exchange for services rendered by employees is measured at thefair value of the equity instruments granted to employees at the date of granting. The fair value is measuredbased on the best estimate of the number of vesting equity instruments in the waiting period and included inthe relevant costs or expenses by the straight-line method when its right is exercised only after the service inthe waiting period is completed or the specified performance conditions are met, and the capital reserve isincreased accordingly.The cash-settled share payment is measured according to the fair value of liabilities determined based onshares or other equity instruments undertaken by the Group. If the right is exercised immediately after thegrant, the fair value of the liabilities assumed on the date of the grant is included into the relevant costs orexpenses, and the liabilities are increased accordingly; if the right can be exercised after the service withinthe waiting period is completed or the specified performance conditions are met, on each balance sheet dateof the waiting period, based on the best estimate of the vesting, and the fair value of the Group's liabilities,the services obtained in the current period are included in costs or expenses, and the liabilities are adjustedaccordingly.In each balance sheet date and the date of settlement before the settlement of the relevant liabilities, remeasure the fair value of liabilities, the changes recorded in the current profits and losses.If the Group cancels the granted equity instruments within the waiting period (except those cancelled due tofailure to meet the conditions for exercise), it shall be treated as accelerating exercise, that is, it is deemedthat the equity payment plan within the remaining waiting period has fully met the conditions for exercise,and all expenses within the remaining waiting period shall be recognized in the current period when thegranted equity instruments are cancelled.
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 at their fairvalue after deducting transaction costs, and subsequently measured at amortized cost by the actual interestmethod. Their interest expense or dividend distribution shall be treated as borrowing costs, and the gains orlosses arising from their repurchase or redemption shall be included in the current profits and losses.For preferred stocks and perpetual bonds classified as equity instruments, the consideration received at thetime of issuance is treated to increase the owner’s equity after deducting transaction costs, with interestexpense or dividend distribution treated as profit distribution, and repurchase or cancellation treated as equitychange.
38. Income
(1) Accounting policy for income recognition and measurement
√ Applicable □ Not applicable
The Group's operating income mainly includes vehicle toll income, railway transportation income,commodity sales income and labor service income.The Group recognizes income when it fulfills the performance obligation in the contract, that is, when thecustomer obtains control over the relevant goods or services.If two or more performance obligations are included in the contract, the Group shall apportion the transactionprice to each individual performance obligation at the beginning of the contract according to the relativeproportion of the individual selling price of the goods or services promised by each single performanceobligation, and measure the income according to the transaction price apportioned to each individualperformance obligation.Transaction price refers to the amount of consideration that the Group is expected to be entitled to receivedue to the transfer of goods or services to customers, excluding the amount collected on behalf of a thirdparty. The transaction price recognized by the Group shall not exceed the amount that the accumulatedrecognized income is unlikely to have significant reversal when the relevant uncertainty is eliminated. Theamount expected to be returned to the customer is not included in the transaction price as a liability. In caseof significant financing in the contract, the Group shall recognize the transaction price according to theamount payable in cash when the customer obtains the control over goods or services. The difference betweenthe transaction price and the contract consideration shall be amortised with the effective interest methodduring the contract period. On the commencement date of the contract, if the interval between the customer'sacquisition of control over the goods or services and the customer's payment is not more than one year, thesignificant financing in the contract shall not be considered.The Group shall perform its performance obligations within a certain period of time when one of thefollowing conditions is met; otherwise, it shall perform the performance obligation at a certain time point:
1. While the Group is performing the contract, the customer obtains and consumes the economic benefits
brought by the group's performance.
2. Customers can control the products under construction during the Group's performance.
3. The goods produced in the process of the Group's performance have irreplaceable uses, and the Group
is entitled to collect money for the performance part that has been completed so far during the wholecontract period.For the performance obligations performed in a certain period of time, the Group shall recognize the incomeaccording to the performance progress in that period, and determine the performance progress according tothe output method. When the performance progress cannot be reasonably determined, if the cost incurred bythe Group is expected to be compensated, the income shall be recognized according to the cost amountincurred until the performance progress can be reasonably determined.For the performance obligations performed at a certain time point, the Group shall recognize the income atthe time point when the customer obtains control over the relevant goods or services. When judging whethera customer has acquired control over goods or services, the Group shall consider the following signs:
1. The Group has the current right to receive payment for the goods or services.
2. The Group has transferred the legal ownership of the goofs to the customer.
3. The Group has transferred the goods in kind to customers.
4. The Group has transferred the main risks and rewards in the ownership of the goods to customers.
5. The customer has accepted the goods or services, etc.
The Group’s right to receive consideration after transferring goods or services to customers is listed ascontract assets, and contract assets are devalued on the basis of expected credit losses. The Group'sunconditional right to receive consideration from customers is listed as receivables. The Group’s obligation
to transfer goods or services to customers after receiving receivable considerations of goods from customersis listed as contract liabilities.
(2) Differences in revenue recognition accounting policies caused by different operation models ofsimilar businesses
□ Applicable √ Not applicable
39. Contract cost
√ Applicable □ Not applicable
(1) Recognition method of asset amount related to contract cost
The Group’s assets related to contract costs include contract performance costs and contract acquisition costs.Contract performance cost, that is, the cost incurred by the Group for the performance of the contract, doesnot fall within the scope of other accounting standards and meets the following conditions, but it is recognizedas an asset: the cost is directly related to a current or expected contract, including direct labor, direct materials,manufacturing expenses (or similar expenses), costs clearly borne by the customer and other costs incurredonly as a result of the contract; the cost increases the resources of the Group for performing its performanceobligations in the future; the cost is expected to be recovered.Contract acquisition cost, that is, the incremental cost incurred by the Group to obtain the contract is expectedto be recovered, shall be recognized as an asset as the contract acquisition cost; if the amortization period ofthe asset does not exceed one year, it shall be included in the current profit and loss when it occurs.Incremental cost refers to the cost (such as sales commission) that the Group will not incur without obtainingthe contract. Other expenses incurred by the Group to obtain the contract other than the expected incrementalcost (such as travel expenses that will occur regardless of whether the contract is obtained) are included inthe current profit and loss when they occur, except for those that are clearly borne by the customer.
(2) Amortization of assets related to contract costs
The Group’s assets related to contract costs are amortized on the same basis as the recognition of goodsincome related to the asset and included in the current profit and loss.
(3) Impairment of assets related to contract costs
When recognizing the impairment loss of assets related to the contract cost, the Group shall first recognizethe impairment loss of other assets related to the contract and recognized in accordance with other relevantcorporate accounting standards; then, based on the fact that the book value is higher than the differencebetween the residual consideration expected to be obtained by the Group due to the transfer of the goodsrelated to the asset and the estimated cost to be incurred for the transfer of the relevant goods, the excess partshall be withdrawn for impairment provision and recognized as asset impairment loss.If the factors of impairment in the previous period change later, causing the above-mentioned difference ishigher than the book value of the asset, the original provision for impairment of the asset shall be reversedand included in the current profit and loss, but the book value of the asset after reversal shall not exceed thebook value of the asset on the reversal date without provision for impairment.
40. Government subsidy
√ Applicable □ Not applicable
The government subsidies of the Group are monetary assets or non monetary assets obtained from thegovernment at free cost including tax refund, financial subsidies, etc. Among them, government subsidiesrelated to assets refer to the government subsidies obtained by the Group for the purchase and constructionor the formation of long-term assets in other ways; government subsidies related to income refer togovernment subsidies other than those related to assets. In case no subsidy object is clearly specified in thegovernment document, the Group will make a judgment as per the above-mentioned principle of distinction.If the types of subsidies are hard to be distinguished, all subsidies shall be classified as subsidies related toincome.If the government subsidies are monetary assets, they shall be measured according to the amount actuallyreceived; if the government subsidies are allocated according to a fixed quota standard, or if there isconclusive 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 be measuredat fair value; if the fair value cannot be obtained reliably, it shall be measured according to the nominalamount (1 Yuan).The government subsidies related to assets are recognized as deferred income, and the government subsidies
related to assets are recognized as deferred income. Within the service life of relevant assets, they are includedin the current profits and losses in phases according to the reasonable and systematic method.Where the relevant assets are sold, transferred, scrapped or damaged before the end of their useful lives, thebalance of undistributed relevant deferred incomes shall be transferred to the current profits or losses of theasset 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 profit and loss during theperiod when relevant cost or loss are recognized. Government subsidies related to daily activities shall beincluded in other incomes according to the essence of economic business. Government subsidies irrelevantto 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 two situationswhere the fiscal department appropriates interest subsidies to the lending bank or directly to the Group, andaccounting 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 bank provides
the loan to the Group at the preferential policy interest rate, the Group shall take the actual received amountas the entry value of the loan and calculate the relevant borrowing cost according to the loan principal andthe preferential policy interest rate.
(2) In case the fiscal department appropriates interest subsidies directly to the Group, the Group will offsetrelated borrowing costs with corresponding interest subsidies.In case the Group is required to return the government grants that have been recognized, the Group shallconduct accounting treatment based on actual situation within the current period in which the return isrequired as per the following provisions:
(1) Where related deferred income exists, the book value of related deferred income shall be offset and theexceeding part shall be recorded into the current profits and losses.
(2) In other cases, it is directly included in the profits and losses of the current period.
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 liabilities basedon the difference (temporary differences) between the tax base of assets and liabilities and their book value.For the deductible losses that can be deducted from taxable income in the following years according to thetaxation regulations, the corresponding deferred income tax assets shall be recognized. Temporarydifferences arising from initial recognition of the business goodwill are not recognized as the correspondingdeferred income tax liabilities. For temporary differences formed by the initial recognition of assets orliabilities arising from non-business combination transactions that neither affect accounting profits nortaxable income (or deductible losses), the corresponding deferred income tax assets and deferred income taxliabilities are not recognized. On the balance sheet date, deferred income tax assets and deferred income taxliabilities shall be accounted for at the anticipated tax rate applicable to the recovery of the assets or thesettlement of the liabilities.The Group recognizes the deferred income tax assets to the extent that it is likely to obtain the future taxableincome 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 or current profitsand losses based on straight-line method during various phases within the lease term, and the lesser shallrecognize the rent as revenue based on straight-line method during various phases within the 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 the minimumlease receipts and the initial direct cost on the lease start date shall be taken as the entry value of the financialleasing receivables, and the unguaranteed residual value shall be recorded at the same time; the differencefrom the sum of the minimum lease receipts, the initial direct costs and the unguaranteed residual valueagainst the sum of their current values shall be recognized as unrealized financing income; for the unrealizedfinancing during the lease term, the asset income shall be calculated and recognized according to the actual
interest method; the contingent rent shall be included in the current profit and loss when it actually occurs.When the group is the lessee of financial leasing, the lower of the fair value of the leased assets and thecurrent value of the minimum lease payment on the lease start date shall be taken as the entry value of thefixed assets under financial leasing, the minimum lease payment shall be taken as the entry value of the long-term payables, and the difference between the two shall be recorded as unrecognized financing expenses.
(3) Determination method and accounting disposal method of lease under the new lease standard
□ 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 (Description and Amount of Affected Important Statement Entries) |
| The Ministry of Finance promulgated the revised Accounting Standards for Enterprises No.14–Revenues in 2017. The Company has implemented the above standards since January 1, 2020, and made corresponding adjustments to the financial statements on January 1, 2020 in accordance with the provisions on convergence of the above standards. | CK [2017] No. 22 |
| Item | December 31, 2019 | January 1, 2020 | Adjustment |
| Current assets: | |||
| Monetary funds | 1,816,616,192.72 | 1,816,616,192.72 | |
| Deposit reservation for balance | |||
| Funds lent | |||
| Trading financial assets | |||
| Derivative financial assets | |||
| Notes receivable | 166,046,781.89 | 166,046,781.89 | |
| Accounts receivable | 216,250,199.80 | 216,250,199.80 | |
| Receivables financing | 108,547,434.59 | 108,547,434.59 | |
| Advanced payment | 181,264,318.42 | 181,264,318.42 | |
| Premiums receivable | |||
| Reinsurance accounts receivable |
| Reserves for reinsurance contract receivable | |||
| Other receivables | 5,363,935,525.48 | 5,363,935,525.48 | |
| Including: Interest receivable | |||
| Dividends receivable | 524,516,294.16 | 524,516,294.16 | |
| Redemptory monetary capital for sale | |||
| Stock | 1,914,874,948.39 | 1,750,858,863.27 | -164,016,085.12 |
| Contract assets | 163,571,761.20 | 163,571,761.20 | |
| Held-for-sale assets | |||
| Non-current assets due within one year | 88,000,000.00 | 88,000,000.00 | |
| Other current assets | 1,207,089,124.63 | 1,207,089,124.63 | |
| Total Current Assets | 11,062,624,525.92 | 11,062,180,202.00 | -444,323.92 |
| Non-current assets: | |||
| Disbursement of loans and advances | |||
| Debt investment | 2,288,507,600.00 | 2,288,507,600.00 | |
| Other investment on bonds | |||
| Long-term receivables | |||
| Long-term equity investments | 10,876,650,896.87 | 10,876,650,896.87 | |
| Other equity instrument investment | 354,424,450.19 | 354,424,450.19 | |
| Other non-current financial assets | 5,667,934,389.21 | 5,667,934,389.21 | |
| Investment real estates | 755,113,614.14 | 755,113,614.14 | |
| Fixed assets | 9,609,521,167.21 | 9,609,521,167.21 | |
| Construction in process | 2,530,414,811.07 | 2,530,414,811.07 | |
| Productive biological assets | |||
| Oil and gas assets | |||
| Right-of-use assets | |||
| Intangible assets | 42,329,746,220.35 | 42,329,746,220.35 | |
| Development expenditure | |||
| Goodwill | |||
| Long-term deferred expenses | 8,123,554.12 | 8,123,554.12 | |
| Deferred income tax assets | 616,223,885.62 | 616,334,966.60 | 111,080.98 |
| Other non-current assets | 1,923,575,663.99 | 1,923,575,663.99 | |
| Total non-current assets | 76,960,236,252.77 | 76,960,347,333.75 | 111,080.98 |
| Total assets | 88,022,860,778.69 | 88,022,527,535.75 | -333,242.94 |
| Current liabilities: | |||
| Short-term loans | 568,567,899.41 | 568,567,899.41 | |
| Borrowing from the central bank | |||
| Loans from other banks and other financial institutions | |||
| Trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | 33,211,430.37 | 33,211,430.37 | |
| Accounts payable | 5,020,997,647.35 | 5,020,997,647.35 | |
| Advance receipt | 233,063,704.00 | 86,920,719.72 | -146,142,984.28 |
| Contract liabilities | 134,948,906.19 | 134,948,906.19 | |
| Financial assets sold for repurchase | |||
| Receipt of deposits and deposits from other banks | |||
| Funds received as agent of stock exchange | |||
| Acting underwriting securities | |||
| Payroll payable | 90,270,532.45 | 90,270,532.45 | |
| Taxes payable | 796,192,749.13 | 796,192,749.13 | |
| Other payables | 2,660,600,796.25 | 2,660,600,796.25 | |
| Where: Interest payable | |||
| Dividends payable | 25,917,525.46 | 25,917,525.46 | |
| Handling charges and commissions payable | |||
| Cession insurance premiums payable | |||
| Liabilities held for sale | |||
| Other non-current liabilities due within one year | 2,675,588,903.13 | 2,675,588,903.13 | |
| Other current liabilities | 2,514,549,315.05 | 2,525,743,393.14 | 11,194,078.09 |
| Total current liabilities | 14,593,042,977.14 | 14,593,042,977.14 | |
| Non-current liabilities | |||
| Reserve funds for insurance contracts | |||
| Long-term Loans | 33,314,036,394.39 | 33,314,036,394.39 | |
| Bonds payable | |||
| Including: preferred stocks | |||
| Perpetual debt | |||
| Lease liabilities | |||
| Long-term payable | 307,170,000.00 | 307,170,000.00 | |
| Long-term payroll payable | 226,850,277.65 | 226,850,277.65 | |
| Estimated liabilities | 89,261,686.31 | 89,261,686.31 | |
| Deferred Income | 1,209,465,555.56 | 1,209,465,555.56 | |
| Deferred income tax liabilities | 908,782,748.28 | 908,782,748.28 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 36,055,566,562.19 | 36,055,566,562.19 | |
| Total liabilities | 50,648,609,539.33 | 50,648,609,539.33 | |
| Owners’ equity (or shareholders’ equity) | |||
| Paid-in capital (or capital stock) | 4,811,165,857.00 | 4,811,165,857.00 | |
| Other equity instrument | 2,000,000,000.00 | 2,000,000,000.00 | |
| Including: preferred stocks | |||
| Perpetual debt | 2,000,000,000.00 | 2,000,000,000.00 | |
| Capital reserves | 4,836,763,252.70 | 4,836,763,252.70 | |
| Minus: treasury stocks | |||
| Other comprehensive income | 9,953,082.58 | 9,953,082.58 | |
| Appropriate reserve | 82,671,061.69 | 82,671,061.69 | |
| Surplus reserves | 3,164,742,776.43 | 3,164,742,776.43 | |
| General risk reserves | |||
| Adjustment of the undistributed profits | 18,370,546,470.80 | 18,370,376,516.90 | -169,953.90 |
| Total owner’s equities (or shareholders' equity) attributable to parent company | 33,275,842,501.20 | 33,275,672,547.30 | -169,953.90 |
| Minority equity | 4,098,408,738.16 | 4,098,245,449.12 | -163,289.04 |
| Total owner’s equities (shareholder’s equities) | 37,374,251,239.36 | 37,373,917,996.42 | -333,242.94 |
| Total for Liabilities and Owners’ Equity (or Shareholders’ Equity) | 88,022,860,778.69 | 88,022,527,535.75 | -333,242.94 |
| Item | December 31, 2019 | January 1, 2020 | Adjustment |
| Current assets: | |||
| Monetary funds | 870,975,280.55 | 870,975,280.55 | |
| Trading financial assets | |||
| Derivative financial assets | |||
| Notes receivable | |||
| Accounts receivable | |||
| Receivables financing | |||
| Advanced payment | 11,562,276.40 | 11,562,276.40 | |
| Other receivables | 4,489,749,765.83 | 4,489,749,765.83 | |
| Including: Interest receivable | |||
| Dividends receivable | |||
| Stock | |||
| Contract assets | |||
| Held-for-sale assets | |||
| Non-current assets due within one year | |||
| Other current assets | 41,864.44 | 41,864.44 | |
| Total Current Assets | 5,372,329,187.22 | 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 investments | 22,084,563,217.73 | 22,084,563,217.73 | |
| Other equity instrument investment | 17,614,686.36 | 17,614,686.36 | |
| Other non-current financial assets | |||
| Investment real estates | 103,347,729.63 | 103,347,729.63 | |
| Fixed assets | 5,944,035,071.13 | 5,944,035,071.13 | |
| Construction in process | 1,523,216,463.56 | 1,523,216,463.56 | |
| Productive biological assets | |||
| Oil and gas assets | |||
| Right-of-use assets | |||
| Intangible assets | 26,139,356,460.31 | 26,139,356,460.31 | |
| Development expenditure | |||
| Goodwill | |||
| Long-term deferred expenses | 1,499,423.29 | 1,499,423.29 | |
| Deferred income tax assets | 571,492,951.37 | 571,492,951.37 | |
| Other non-current assets | 2,707,210,551.70 | 2,707,210,551.70 | |
| Total non-current assets | 60,592,336,555.08 | 60,592,336,555.08 | |
| Total assets | 65,964,665,742.30 | 65,964,665,742.30 | |
| Current liabilities: | |||
| Short-term loans | 3,404,762,465.75 | 3,404,762,465.75 | |
| Trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | |||
| Accounts payable | 4,299,771,896.22 | 4,299,771,896.22 | |
| Advance receipt | 34,980,345.86 | 32,316,014.86 | -2,664,331.00 |
| Contract liabilities | 2,513,519.81 | 2,513,519.81 | |
| Payroll payable | 3,081,586.76 | 3,081,586.76 | |
| Taxes payable | 514,166,694.40 | 514,166,694.40 | |
| Other payables | 1,427,028,921.60 | 1,427,028,921.60 | |
| Where: Interest payable | |||
| Dividends payable | |||
| Liabilities held for sale | |||
| Other non-current liabilities due within one year | 1,971,942,633.55 | 1,971,942,633.55 | |
| Other current liabilities | 2,514,549,315.05 | 2,514,700,126.24 | 150,811.19 |
| Total current liabilities | 14,170,283,859.19 | 14,170,283,859.19 | |
| Non-current liabilities | |||
| Long-term Loans | 23,264,718,125.26 | 23,264,718,125.26 | |
| Bonds payable | |||
| Including: preferred stocks | |||
| Perpetual debt | |||
| Lease liabilities | |||
| Long-term payable | 294,000,000.00 | 294,000,000.00 | |
| Long-term payroll payable | 125,852,148.97 | 125,852,148.97 | |
| Estimated liabilities | |||
| Deferred Income | 301,639,375.00 | 301,639,375.00 | |
| Deferred income tax liabilities | 66,701,454.09 | 66,701,454.09 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 24,052,911,103.32 | 24,052,911,103.32 | |
| Total liabilities | 38,223,194,962.51 | 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 stocks | |||
| Perpetual debt | |||
| Capital reserves | 3,723,794,637.56 | 3,723,794,637.56 | |
| Minus: treasury stocks | |||
| Other comprehensive income | 9,953,082.58 | 9,953,082.58 | |
| Appropriate reserve | |||
| Surplus reserves | 3,136,400,886.76 | 3,136,400,886.76 | |
| Adjustment of the undistributed profits | 16,060,156,315.89 | 16,060,156,315.89 | |
| Total owner’s equities (shareholder’s equities) | 27,741,470,779.79 | 27,741,470,779.79 | |
| Total for Liabilities and Owners’ Equity (or Shareholders’ Equity) | 65,964,665,742.30 | 65,964,665,742.30 | |
| Tax categories | Tax basis | Tax rate |
| VAT | Toll revenue | 3% |
| VAT | Rental revenue, advertising revenue, etc. | 5%, 6%, 9% and 13% |
| Urban maintenance and construction tax | Turnover tax payable | 7%, 5% |
| Education surcharge | Turnover tax payable | 5% |
| Enterprise income tax | Taxable income | 15%, 20%, 25% |
| Name of taxpayer | Income tax rate (%) |
| Shandong High Speed Railway Construction Equipment Co., Ltd. | 15 |
| Shandong Ludao Construction Engineering Co., Ltd. | 20 |
| Shandong Ruiyuan Logistics Co., Ltd. | 20 |
| Shandong Hi-Speed Sulianyun Technology Co., Ltd. | 20 |
| Item | Ending balance | Beginning balance |
| Cash in stock | 77,179.92 | 146,872.71 |
| Cash in bank | 2,208,173,576.12 | 1,788,196,184.38 |
| Other monetary funds | 52,537,681.93 | 28,273,135.63 |
| Total | 2,260,788,437.97 | 1,816,616,192.72 |
| including: Total amount of money deposited abroad |
| Item | Ending balance | Beginning balance |
| Cash deposit for bank acceptance bill | 35,376,507.44 | 11,172,214.88 |
| Guarantee margin | 17,161,174.49 | 16,497,140.29 |
| Security deposit for rural workers' wages | 603,780.46 | |
| Total | 52,537,681.93 | 28,273,135.63 |
| Item | Ending balance | Beginning balance |
| Financial assets measured at fair value with changes are included in the current profits and losses | 37,879,166.67 | |
| Including: | ||
| Debt instrument investment | 37,879,166.67 | |
| Total | 37,879,166.67 | |
| Item | Ending balance | Beginning balance |
| Bank acceptance bill | 54,564,808.00 | |
| Commercial acceptance bill | 78,553,471.98 | 111,481,973.89 |
| Total | 78,553,471.98 | 166,046,781.89 |
| 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 (%) | |||
| Provision for bad debts accrued on an individual basis | ||||||||||
| Provision for bad debts accrued on a portfolio basis | 80,086,113.33 | 1,532,641.35 | 78,553,471.98 | 171,914,254.20 | 5,867,472.31 | 166,046,781.89 | ||||
| Including: | ||||||||||
| Related party combination | 49,433,286.40 | 61.73 | 49,433,286.40 | 54,564,808.00 | 31.74 | 54,564,808.00 | ||||
| Third party combination | 30,652,826.93 | 38.27 | 1,532,641.35 | 5.00 | 29,120,185.58 | 117,349,446.20 | 68.26 | 5,867,472.31 | 5.00 | 111,481,973.89 |
| Total | 80,086,113.33 | / | 1,532,641.35 | / | 78,553,471.98 | 171,914,254.20 | / | 5,867,472.31 | / | 166,046,781.89 |
Provision for bad debts accrued on a portfolio basis:
√Applicable □ Not applicable
Portfolio accrual item: third party portfolio
Unit: yuan Currency: CNY
| Name | Ending balance | ||
| Notes receivable | Bad debt reserves | Proportion of accrual (%) | |
| Within 1 year | 30,652,826.93 | 1,532,641.35 | 5.00 |
| Total | 30,652,826.93 | 1,532,641.35 | |
| Category | Beginning balance | Current change amount | Ending balance | ||
| Accrual | Recovery or reversal | Resale or writing off | |||
| Bad debt reserves of notes receivable | 5,867,472.31 | -4,334,830.96 | 1,532,641.35 | ||
| Total | 5,867,472.31 | -4,334,830.96 | 1,532,641.35 | ||
| Aging | Ending book balance |
| Within 1 year | |
| Including: sub items within 1 year | |
| Sub-total within 1 year | 513,075,215.39 |
| 1 to 2 years | 10,949,879.54 |
| 2 to 3 years | 623,234.83 |
| 3 to 4 years | 961,255.17 |
| 4 to 5 years | 669,213.00 |
| More than 5 years | 174,938.50 |
| Total | 526,453,736.43 |
(2) Classified disclosure by bad debt accrual method
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Category | Ending balance | Beginning balance | ||||||||
| Book balance | Bad debt reserves | Book value | Book balance | Bad debt reserves | Book value | |||||
| Amount | Proportion(%) | Amount | Percentage of provision (%) | Amount | Proportion(%) | Amount | Percentage of provision (%) | |||
| Provision for bad debts accrued on an individual basis | ||||||||||
| Provision for bad debts accrued on a portfolio basis | 526,453,736.43 | 6,955,889.65 | 519,497,846.78 | 240,389,709.91 | 24,139,510.11 | 216,250,199.80 | ||||
| Including: | ||||||||||
| Related party combination | 423,415,319.89 | 80.43 | 423,415,319.89 | 2,229,287.25 | 0.93 | 2,229,287.25 | ||||
| Third party combination | 103,038,416.54 | 19.57 | 6,955,889.65 | 6.75 | 96,082,526.89 | 238,160,422.66 | 99.07 | 24,139,510.11 | 10.14 | 214,020,912.55 |
| Total | 526,453,736.43 | / | 6,955,889.65 | / | 519,497,846.78 | 240,389,709.91 | / | 24,139,510.11 | / | 216,250,199.80 |
Provision for bad debts accrued on a portfolio basis:
√ Applicable □ Not applicable
Portfolio accrual item: third party portfolio
Unit: yuan Currency: CNY
| Name | Ending balance | ||
| Accounts receivable | Bad debt reserves | Accrual proportion (%) | |
| Within 1 year | 89,659,895.50 | 4,482,994.76 | 5.00 |
| 1-2 years | 10,949,879.54 | 1,094,987.95 | 10.00 |
| 2-3 years | 623,234.83 | 186,970.45 | 30.00 |
| 3-4 years | 961,255.17 | 480,627.59 | 50.00 |
| 4-5 years | 669,213.00 | 535,370.40 | 80.00 |
| More than 5 years | 174,938.50 | 174,938.50 | 100.00 |
| Total | 103,038,416.54 | 6,955,889.65 | |
| Category | Beginning balance | Current change amount | Ending balance | |||
| Accrual | Recovery or reversal | Resale or writing off | Other changes | |||
| Provision for bad debts of accounts receivable | 24,139,510.11 | -17,183,620.46 | 6,955,889.65 | |||
| Total | 24,139,510.11 | -17,183,620.46 | 6,955,889.65 | |||
□ Applicable √ Not applicable
Other statements:
□ Applicable √ Not applicable
6. Receivables financing
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Item | Ending balance | Beginning balance |
| Bank acceptance bill | 150,000,016.63 | 108,547,434.59 |
| Total | 150,000,016.63 | 108,547,434.59 |
| Item | Ending balance | Beginning balance |
| Bank acceptance bill | 28,975,000.00 | |
| Total | 28,975,000.00 |
| Aging | Ending balance | Beginning | Balance | |
| Amount | Proportion(%) | Amount | Proportion(%) | |
| Within 1 year | 140,542,952.66 | 95.85 | 174,771,453.32 | 96.42 |
| 1 to 2 years | 4,703,965.97 | 3.21 | 5,605,635.96 | 3.09 |
| 2 to 3 years | 522,536.55 | 0.36 | 554,192.39 | 0.31 |
| More than 3 years | 849,839.08 | 0.58 | 333,036.75 | 0.18 |
| Total | 146,619,294.26 | 100.00 | 181,264,318.42 | 100.00 |
□ Applicable √ Not applicable
8. Listing of other receivable projects
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Item | Ending balance | Beginning balance |
| Interest receivable | ||
| Dividends receivable | 75,037,985.75 | 524,516,294.16 |
| Other receivables | 4,175,472,909.42 | 4,839,419,231.32 |
| Total | 4,250,510,895.17 | 5,363,935,525.48 |
| Project (or investee unit) | Ending balance | Beginning balance |
| Evergrande Real Estate Group Co., Ltd. | 524,516,294.16 | |
| Jinan Changying transportation infrastructure investment fund partnership (limited partnership) | 75,037,985.75 | |
| Total | 75,037,985.75 | 524,516,294.16 |
| Aging | Ending book balance |
| Within 1 year | |
| Sub-total within 1 year | 938,594,674.53 |
| 1 to 2 years | 2,769,627,764.68 |
| 2 to 3 years | 179,389,344.58 |
| 3 to 4 years | 228,515,129.67 |
| 4 to 5 years | 293,295.25 |
| More than 5 years | 374,648,980.35 |
| Total | 4,491,069,189.06 |
| Nature of receivables | Ending book balance | Beginning book balance |
| Intercourse funds | 3,931,194,242.09 | 4,632,220,949.14 |
| Toll split | 130,434,140.05 | 150,838,296.07 |
| Payment for Kenxin Project (Note 1) | 305,533,879.36 | 305,533,879.36 |
| Deposits, security deposits | 123,906,927.56 | 13,344,573.58 |
| Total | 4,491,069,189.06 | 5,101,937,698.15 |
| Bad debt reserves | Phase I | Phase II | Phase III | Total |
| Expected credit loss in the next 12 months | Expected credit losses for the entire duration (no credit impairment occurs) | Expected credit losses for the entire duration (credit impairment has occurred) | ||
| Balance as of January 1, 2020 | 53,755,729.68 | 762,978.92 | 207,901,469.17 | 262,420,177.77 |
| On January 1, 2020, balance will be |
| transferred into | ||||
| -Carried to Phase II | ||||
| - Carried to Phase III | ||||
| - Carried back to Phase II | ||||
| - Carried back to Phase I | ||||
| Accrual in current period | 9,406,350.36 | 151,791.23 | 43,932,518.71 | 55,239,985.39 |
| Amount reversed in current period | - | |||
| Amount resold in current period | ||||
| Amount written off in current period | ||||
| Other changes | -314,558.43 | -314,558.43 | ||
| Balance as of December 31, 2020 | 62,847,521.61 | 914,770.15 | 251,833,987.88 | 315,596,279.64 |
| Category | Beginning balance | Current change amount | Ending balance | |||
| Accrual | Recovery or reversal | Resale or writing off | Others change | |||
| Provision for other bad debts receivable | 262,420,177.77 | 53,490,660.30 | -314,558.43 | 315,596,279.64 | ||
| Total | 262,420,177.77 | 53,490,660.30 | -314,558.43 | 315,596,279.64 | ||
(12) Top five other receivables of ending balance collected by debtors
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Company name: | Nature of receivables | Ending balance | Aging | Proportion in total ending balance of other receivables (%) | Ending balance of provision for bad debt |
| Shandong Hi-Speed Xicheng Property Co., Ltd. | Intercourse funds | 2,680,123,634.69 | 1-2 years | 59.68% | |
| Jinan Puyuan Real Estate Co., Ltd. | Intercourse funds | 452,732,622.93 | 2-3 years | 10.08% | |
| Bureau of Finance of Fushan District, Yantai City | Land replacement payments | 413,616,620.65 | Within 1 year | 9.21% | |
| Shenzhen Litianjun Supply Chain Co., Ltd. | Receivables of Kenxin Project | 305,533,879.36 | More than 5 years | 6.80% | 201,295,159.36 |
| Huantai County Xinghuan Railway Investment Co. Ltd. | Intercourse funds | 70,000,000.00 | Within 1 year | 1.56% | 18,884,200.00 |
| Total | / | 3,922,006,757.63 | / | 87.33% | 220,179,359.36 |
| 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 | 179,031,840.06 | 52,974,345.27 | 126,057,494.79 | 44,710,790.93 | 301,882.10 | 44,408,908.83 |
| Finished goods | 104,819,717.90 | 464,498.64 | 104,355,219.26 | 114,781,822.37 | 403,403.60 | 114,378,418.77 |
| Goods in transit | 36,944,579.48 | 36,944,579.48 | ||||
| Entrusted processing materials | 243,062.89 | 243,062.89 | ||||
| Development costs | 1,159,759,913.04 | 1,159,759,913.04 | 1,514,388,124.02 | 1,514,388,124.02 | ||
| Products development | 38,540,303.78 | 38,540,303.78 | ||||
| Others | 209,251.50 | 209,251.50 | 1,955,465.50 | 1,955,465.50 | ||
| Total | 1,443,820,722.50 | 53,438,843.91 | 1,390,331,878.59 | 1,751,564,148.97 | 705,285.70 | 1,750,858,863.27 |
| 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 | 52,672,463.17 | 52,974,345.27 | |||
| Finished goods | 403,403.60 | 61,095.04 | 464,498.64 | |||
| Total | 705,285.70 | 52,733,558.21 | 53,438,843.91 | |||
| Project Name | Commencement date | Estimated completion date | Estimated total investment | Balance at the beginning of the year | Year-end balance |
| Jiahe Island Project | Not started | Not started | 4,250,480,000.00 | 1,514,388,124.02 | 1,159,759,913.04 |
| Total | 4,250,480,000.00 | 1,514,388,124.02 | 1,159,759,913.04 |
| Item | Ending balance | Beginning balance | ||||
| Book balance | Impairment reserves | Book value | Book balance | Impairment reserves | Book value | |
| Project contract assets | 165,137,562.87 | 4,262,252.54 | 160,875,310.33 | 164,016,085.12 | 444,323.92 | 163,571,761.20 |
| Total | 165,137,562.87 | 4,262,252.54 | 160,875,310.33 | 164,016,085.12 | 444,323.92 | 163,571,761.20 |
□ Applicable √ Not applicable
(3) Accrual for impairment reserves of contract assets in the current period
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Item | Accrual in current period | Amount reversed in current period | Current write-offs | Reason |
| Project contract assets | 3,817,928.62 | |||
| Total | 3,817,928.62 | / |
| Item | Ending balance | Beginning balance |
| Zhongteng global investment project | 88,000,000.00 | |
| Project of Shanghai Weishi Investment Management Co., Ltd. | 113,246,088.67 | |
| Total | 113,246,088.67 | 88,000,000.00 |
| Item | Ending balance | Beginning balance |
| Prepaid income tax of the enterprise | 2,098,742.41 | 12,925,843.76 |
| Input tax to be deducted | 219,318,777.23 | 118,271,838.39 |
| Guangkai financial leasing debt investment project | 74,500,000.00 | |
| Project of Qingdao Wudaokou New Energy Vehicle Industry Fund | 1,000,000,000.00 | |
| Payment for Evergrande equity transfer | 3,516,095,138.11 | |
| Others | 1,456,840.91 | 1,391,442.48 |
| Total | 3,738,969,498.66 | 1,207,089,124.63 |
Estate Group Co., Ltd." with Shenzhen Talents Housing Group Co., Ltd. (the transferee) and EvergrandeReal Estate Group Co. Ltd, with the equity transfer price of RMB5 billion. According to the equity transferagreement, the transferee will pay RMB 1.5 billion, 30% of the transfer amount within 5 business days afterthe effective date of the agreement, another RMB 1.5 billion (30%) after the effective date of the agreement,and the remaining RMB 2 billion (40%) within 12 months; the second and third installments of the transferamount will be paid with interest at the rate of 3.85% from the date of the agreement to the actual paymentdate. The agreement also stipulates that the transferee pledges the corresponding equity interest of EvergrandeReal Estate Group to the Company as guarantee. As of December 31, 2020, the Company has received RMB
1.5 billion in the first phase of transfer.
14. Debt investment
(1). Credit investment.
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Item | Ending balance | Beginning balance | ||||
| Book balance | Impairment reserves | Book value | Book balance | Impairment reserves | Book value | |
| Jinan Changying Jinyu investment partnership (limited partnership) loan project | 40,111,111.11 | 40,111,111.11 | 33,000,000.00 | 33,000,000.00 | ||
| Weihai Mediterranean International Style Town Project | 60,220,000.00 | 60,220,000.00 | ||||
| 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 | 1,050,000,000.00 | 1,050,000,000.00 | 1,500,000,000.00 | 1,500,000,000.00 | ||
| Shandong Railway Development Fund | 63,263,163.00 | 63,263,163.00 | ||||
| Infrastructure investment projects such as urban renewal | 900,882,460.61 | 900,882,460.61 | ||||
| Project of Shanghai Weishi Investment Management Co., Ltd. | 223,507,600.00 | 223,507,600.00 | ||||
| Haiyi Mianwei Investment Co., Ltd Borrowing Project | 32,000,000.00 | 32,000,000.00 | ||||
| Total | 2,614,476,734.72 | 2,614,476,734.72 | 2,288,507,600.00 | 2,288,507,600.00 | ||
(2). Important credit investment at the end of the period.
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Item | Ending balance | Beginning balance | ||||||
| Face value | Nominal interest rate | Actual interest rate | Due date | Face value | Nominal interest rate | Actual interest rate | Due date | |
| Jinan Changying Jinyu investment partnership (limited partnership) loan project | 40,000,000.00 | 10.00% | 10.00% | 12/30/2022 | 33,000,000.00 | 10.00% | 10.00% | 12/30/2022 |
| Weihai Mediterranean International Style Town Project | 60,000,000.00 | 12.00% | 12.00% | 8/25/2022 | ||||
| Loan project of Haiyi Liwei Investment Co., Ltd | 32,000,000.00 | 10.00% | 10.00% | 6/28/2021 | ||||
| Project of Shanghai Weishi Investment Management Co., Ltd. | 223,507,600.00 | 10.00% | 10.00% | 4/4/2021 | ||||
| Capital contribution by BOE Trust | 500,000,000.00 | 8.50% | 8.50% | 12/31/2022 | 500,000,000.00 | 8.50% | 8.50% | 12/31/2022 |
| Weifang Shangao new and old kinetic energy conversion fund project | 1,050,000,000.00 | 15.00% | 15.00% | 12/1/2023 | 1,500,000,000.00 | 15.00% | 15.00% | 12/1/2023 |
| Shandong Railway Development Fund | 63,263,163.00 | 4.85% | 4.85% | 6/30/2030 | 8.50% | 8.50% | 12/31/2022 | |
| Infrastructure investment projects such as urban renewal | 150,000,000.00 | 10.70% | 10.70% | 4/8/2026 | ||||
| Infrastructure investment projects such as urban renewal | 185,980,000.00 | 10.70% | 10.70% | 6/11/2025 | ||||
| Infrastructure investment projects such as urban renewal | 189,600,000.00 | 10.70% | 10.70% | 8/7/2025 | ||||
| Infrastructure investment projects such as urban renewal | 137,183,300.00 | 10.50% | 10.50% | 10/13/2025 | ||||
| Infrastructure investment projects such as urban renewal | 231,166,130.00 | 10.70% | 10.70% | 10/30/2025 | ||||
| Total | 2,607,192,593.00 | 2,288,507,600.00 | ||||||
(3) Impairment provision accrual
□ Applicable √ Not applicable
The amount of impairment provision accrual for the current period and the basis used to assess whether thecredit risk of the financial instrument has increased significantly □Applicable √Not applicableOther descriptions □Applicable √Not applicable
15. Other debt investments
(1) Other debt investment
□ Applicable √ Not applicable
(2) Other Important credit investment at the end of the period
□ Applicable √ Not applicable
(3) Accrual of impairment reserves
□ Applicable √ Not applicable
The amount of impairment provision accrual for the current period and the basis used to assess whether thecredit risk of the financial instrument has increased significantly □Applicable √Not applicableOther statements:
□ Applicable √ Not applicable
16. Long-term receivables
(1) Long-term receivables
□ Applicable √ Not applicable
(2) Accrual of bad debt reserves
□ Applicable √ Not applicable
The amount of provision for bad debts for the current period and the basis used to assess whether the creditrisk of financial instruments has increased significantly □Applicable √Not applicable
(3) Receivables derecognized due to transfer of financial assets
□ Applicable √ Not applicable
(4) Amount of assets and liabilities formed by transferring long-term receivables and continuing tobe involved
□ Applicable √ Not applicable
Other statements
□ Applicable √ Not applicable
17. Long-term equity investment
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| 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 | 1,965,037.74 | 58,487,773.41 | ||||||||
| Shandong Zhonglan Railway Operation Co., Ltd. | 51,000,000.00 | 51,000,000.00 | |||||||||
| Subtotal | 56,522,735.67 | 1,965,037.74 | 51,000,000.00 | 109,487,773.41 | |||||||
| II. Associated enterprises | |||||||||||
| Weihai City Commercial Bank | 2,659,454,352.14 | 197,058,843.04 | -34,300,106.11 | -74,467,431.98 | 69,395,798.70 | 2,678,349,858.39 | |||||
| Shandong High-speed Logistics Group Co., Ltd. | 692,500,766.48 | 17,947,666.27 | 710,448,432.75 | ||||||||
| Shandong High-speed Engineering Project Management Co. Ltd. | 61,883,479.57 | 1,737,768.98 | 21,738,329.14 | -7,655,851.91 | 74,228,187.82 | ||||||
| Shandong Hi-Speed Changying Huitong Equity Investment | 18,773,771.68 | 1,280,807.66 | 20,054,579.34 | ||||||||
| Fund Partnership (Limited Partnership) | |||||||||||
| Dongxing Securities Co., Ltd. | 2,372,539,748.49 | 72,931,666.23 | -24,107,726.41 | 16,798,500.00 | 2,404,565,188.31 | ||||||
| Fujian Longma Environmental Sanitation Equipment Co., Ltd. | 414,739,204.41 | 25,706,280.73 | 4,134,026.52 | 436,311,458.62 | |||||||
| Shandong Environmental Protection Industry Co., Ltd | 8,616,004.04 | 570,224.04 | 9,186,228.08 | ||||||||
| Shandong General Aviation Service Co., Ltd | 89,900,000.00 | 1,146,718.15 | 91,046,718.15 | ||||||||
| Shandong CSIC Chinatong New Old Energy Conversion Industry Investment Fund Partnership (Limited Partnership) | 34,500,000.00 | 34,500,000.00 | |||||||||
| CSIC EIT (Shandong) City Operation Service Co. | 9,800,000.00 | 9,800,000.00 | |||||||||
| Shandong New Old Energy CSIC Chengtay Venture Capital Fund Partnership | 20,305,753.42 | 20,305,753.42 |
| (Limited Partnership) | |||||||||||
| Jinan Changying Transportation Infrastructure Investment Fund Partnership | 2,134,508,339.14 | 150,000,000.00 | 288,256,261.79 | 159,177,506.45 | 2,413,587,094.48 | ||||||
| Shandong Hi-Speed Yingli New Energy Co., Ltd. | 23,993,777.36 | 25,000,000.00 | 2,886,115.02 | 3,892,337.66 | |||||||
| Shandong High-Speed (Henan) Maintenance Technology Co., Ltd. | 16,530,000.00 | 15,246.91 | 16,545,246.91 | ||||||||
| Shanghai Jinghai Enterprise Management Center (limited partnership) | 240,350,000.00 | 3,417,721.05 | 236,932,278.95 | ||||||||
| Sooner Information Technology Co. | 34,570,411.47 | 1,849,443.69 | 32,720,967.78 | ||||||||
| Jinan Changying Jintai Equity Investment Fund Partnership (limited partnership) | 56,700,000.00 | 20,000,000.00 | 1,724,996.00 | -1,724,996.00 | 36,700,000.00 | ||||||
| Jinan Changying Jinyu Investment Partnership (limited partnership) | 7,000,000.00 | -7,000,000.00 | |||||||||
| Guiyang | 47,226,363.41 | 39,721,500.0 | 565,982.01 | 8,070,845.42 |
| Zhongyun Copyright Industry Fund Partnership (Limited Partnership) | 0 | ||||||||||
| Shandong Hi-Speed Jitai Mining Investment Co., Ltd. | 3,226,403.74 | 620,401.14 | 2,606,002.60 | ||||||||
| Shandong Hi-Speed Jinan Investment Co., Ltd. | 641,471,800.00 | 11,945,452.66 | 629,526,347.34 | ||||||||
| Shandong Hi-Speed Zhongke Incubation Management Co., Ltd. | 500,000.00 | 60,354.61 | 560,354.61 | ||||||||
| Hunan Lianzhi Technology Co., Ltd | 30,000,000.00 | 30,000,000.00 | |||||||||
| Guangdong Provincial Expressway Development Co., Ltd. | 1,262,909,310.98 | 68,709,508.74 | 6,254,776.26 | 1,337,873,595.99 | |||||||
| Jinan Puyuan Real Estate Co., Ltd. | 1,273,014,455.42 | 108,839,223.52 | 1,164,175,231.90 | ||||||||
| Shenzhen zhongran Fund Management Co., Ltd | 9,059,283.85 | 147,734.82 | 9,207,018.67 | ||||||||
| Shandong Lingang Shugang Rail Transit Co., Ltd. | 120,000,000.00 | 280,000,000.00 | 400,000,000.00 | ||||||||
| Shandong Hi-Speed New Material Technology | 72,359.59 | 16,000,000.00 | 16,072,359.59 |
| Co., Ltd. | |||||||||||
| Subtotal | 10,820,128,161.20 | 1,893,945,064.40 | 86,459,268.98 | 568,374,622.65 | -58,407,832.52 | -68,212,655.72 | 251,230,827.67 | 0.00 | 5,236,485.75 | 12,823,373,749.11 | |
| Total | 10,876,650,896.87 | 1,893,945,064.40 | 86,459,268.98 | -58,407,832.52 | -58,407,832.52 | -68,212,655.72 | 251,230,827.67 | 0.00 | 56,236,485.75 | 12,932,861,522.52 |
| 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 Weilai High Speed Railway Co., Ltd. | 31,626,837.00 | 31,626,837.00 |
| Shandong Railway Investment Holding Group Co., Ltd. | 300,000,000.00 | 300,000,000.00 |
| Total | 349,241,523.36 | 354,424,450.19 |
| Item | Ending balance | Beginning balance |
| Nanfang Cement Receivables No. 1 Asset-Backed Special Plan | 35,709,250.00 | 35,709,250.00 |
| Champion Rental 2018 Phase II Asset-Backed Special Plan Asset-Backed Securities | 68,331,941.10 | |
| Equity investment by Evergrande Real Estate Group Co., Ltd. | 5,000,000,000.00 | |
| Yike Tower Investment Project | 563,893,198.11 | 563,893,198.11 |
| Total | 599,602,448.11 | 5,667,934,389.21 |
| Item | Houses and buildings | Total |
| I. Original book value | ||
| 1. Beginning balance | 869,968,368.33 | 869,968,368.33 |
| 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 | 871,287,486.68 | 871,287,486.68 |
| II. Total accumulated depreciation and accumulated amortization | ||
| 1. Beginning balance | 114,854,754.19 | 114,854,754.19 |
| 2. Amount increased in the current period | 32,036,789.93 | 32,036,789.93 |
| (1) Accrual or amortization | 32,036,789.93 | 32,036,789.93 |
| 3. Amount decreased in the current period | ||
| (1) Disposal |
| (2) Other transfers | ||
| 4. Ending balance | 146,891,544.12 | 146,891,544.12 |
| 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 | 724,395,942.56 | 724,395,942.56 |
| 2. Beginning book value | 755,113,614.14 | 755,113,614.14 |
| Item | Ending balance | Beginning balance |
| Fixed assets | 9,267,680,678.56 | 9,609,521,167.21 |
| Disposal of fixed assets | ||
| Total | 9,267,680,678.56 | 9,609,521,167.21 |
(1). Fixed assets
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Item | Road property | Houses and Buildings | Machinery equipment | Transportation means | Electronic appliances and communication equipment | Instruments and standard measuring apparatus | Other Equipment | Total |
| I. Original book value: | ||||||||
| 1. Beginning balance | 12,385,124,456.34 | 3,510,042,375.59 | 324,405,666.04 | 522,514,877.31 | 1,488,671,995.71 | 56,409,980.03 | 41,223,724.44 | 18,328,393,075.46 |
| 2. Increase in the current year | 491,249,098.18 | 165,527,891.72 | 15,403,983.07 | 21,400,212.81 | 342,537,575.10 | 7,893,559.17 | 5,363,458.25 | 1,049,375,778.30 |
| (1) Acquisition | 3,410,384.65 | 31,304,903.35 | 13,671,518.22 | 21,400,212.81 | 263,001,443.92 | 7,361,956.77 | 4,553,776.25 | 344,657,833.14 |
| (2) Transferred from construction in progress | 487,838,713.53 | 109,736,120.47 | 79,536,131.18 | 531,602.40 | 809,682.00 | 678,452,249.58 | ||
| (3) Business combination increased | 1,732,464.85 | |||||||
| (4) Others | 24,486,867.90 | 24,486,867.90 | ||||||
| 3. Amount decreased in the current period | 393,098,202.86 | 118,482,690.90 | 97,233,276.08 | 15,934,097.63 | 19,712,264.47 | 2,347,728.28 | 4,757,486.75 | 651,565,746.97 |
| (1) Disposal or scrap | 384,862,466.50 | 6,580,919.08 | 12,578,918.58 | 13,963,376.33 | 18,639,393.87 | 1,797,623.67 | 3,162,276.71 | 441,584,974.74 |
| (2) Other decreases | 8,235,736.36 | 111,901,771.82 | 84,654,357.50 | 1,970,721.30 | 1,072,870.60 | 550,104.61 | 1,595,210.04 | 209,980,772.23 |
| 4. Ending balance | 12,483,275,351.66 | 3,557,087,576.41 | 242,576,373.03 | 527,980,992.49 | 1,811,497,306.34 | 61,955,810.92 | 41,829,695.94 | 18,726,203,106.79 |
| II. Accumulated depreciation | ||||||||
| 1. Beginning balance | 6,863,010,793.82 | 724,719,508.42 | 142,081,972.10 | 388,908,808.83 | 537,671,468.39 | 34,332,168.62 | 28,147,188.07 | 8,718,871,908.25 |
| 2. Amount increased in the current period | 640,221,005.54 | 110,266,643.80 | 21,030,671.68 | 29,333,180.87 | 258,302,268.01 | 6,780,063.89 | 3,034,041.75 | 1,068,995,306.24 |
| (1) Accrual | 640,221,005.54 | 110,266,643.80 | 21,030,671.68 | 29,434,799.03 | 258,312,041.29 | 6,780,063.89 | 3,034,041.75 | 1,068,995,306.24 |
| (2) Business combination increased | 27,430.70 | 27,430.70 |
| 3. Amount decreased in the current period | 255,581,176.58 | 13,381,386.69 | 24,403,433.34 | 13,803,432.64 | 16,911,411.38 | 1,897,201.09 | 3,366,744.54 | 329,344,786.26 |
| (1) Disposal or scrap | 255,581,176.58 | 9,677,370.37 | 11,650,127.42 | 13,323,627.85 | 16,664,863.11 | 1,696,480.26 | 3,028,482.26 | 311,622,127.85 |
| (2) Other decreases | 3,704,016.32 | 12,753,305.92 | 479,804.79 | 246,548.27 | 200,720.83 | 338,262.28 | 17,722,658.41 | |
| 4. Ending balance | 7,247,650,622.78 | 821,604,765.53 | 138,736,641.14 | 404,438,557.06 | 779,062,325.02 | 39,215,031.42 | 27,814,485.28 | 9,458,522,428.23 |
| 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 | 5,235,624,728.88 | 2,735,482,810.88 | 103,839,731.89 | 123,542,435.43 | 1,032,434,981.32 | 22,740,779.50 | 14,015,210.66 | 9,267,680,678.56 |
| 2. Beginning book value | 5,522,113,662.52 | 2,785,322,867.17 | 182,323,693.94 | 133,606,068.48 | 951,000,527.32 | 22,077,811.41 | 13,076,536.37 | 9,609,521,167.21 |
(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: CNY
| Item | Ending book value |
| Fixed assets leased out by operating lease | 20,244,042.76 |
| Total | 20,244,042.76 |
| Item | Book value | Reason for not being granted property right certificates |
| Road property | 66,744,852.27 | In progress |
| Buildings | 265,252,095.62 | In progress |
| Total | 331,996,947.89 |
| Item | Ending balance | Beginning balance |
| Construction in process | 8,480,761,085.91 | 2,530,414,811.07 |
| Engineering material | ||
| Total | 8,480,761,085.91 | 2,530,414,811.07 |
Construction in process
(1).Construction in process
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Item | Ending balance | Beginning balance | ||||
| Book balance | Impairment reserves | Book value | Book balance | Impairment reserves | Book value | |
| Provincial Boundary Toll Station Cancellation Project | 27,181,361.90 | 27,181,361.90 | ||||
| Tunnel upgrading project | 9,652,987.40 | 9,652,987.40 | ||||
| Widening and reconstruction of Ganggou toll station | 3,905,973.44 | 3,905,973.44 | 16,629,812.91 | 16,629,812.91 | ||
| Reconstruction project of Jinghu expressway tunnel section | 72,637,476.85 | 72,637,476.85 | ||||
| Beijing-Taipei Expressway Dezhou-Qihe Section Renovation Expansion Project | 6,128,657,900.98 | 6,128,657,900.98 | 1,390,342,323.00 | 1,390,342,323.00 | ||
| Weilai expressway assets transformation project. | 41,840,386.80 | 41,840,386.80 | ||||
| Beijing-Taipei Expressway Jinan-Taian Section Renovation and Expansion Project | 473,623,631.48 | 473,623,631.48 | ||||
| New TDCS for Yiyang Line | 10,538,260.34 | 10,538,260.34 | ||||
| Lanshan Station Asphalt Grand Depot | 6,671,883.90 | 6,671,883.90 | 216,037.74 | 216,037.74 | ||
| Pinglan line expansion and renovation | 2,535,784.37 | 2,535,784.37 | ||||
| New TDCS for Caoshou Line | 4,646,542.05 | 4,646,542.05 | ||||
| Shouping railway | 14,170,000.00 | 14,170,000.00 | 127,147,000.00 | 127,147,000.00 | ||
| Zhonglan Railway Project | 16,489,338.18 | 16,489,338.18 | ||||
| Industrial park land leveling | 8,756,397.82 | 8,756,397.82 | 3,375,300.76 | 3,375,300.76 | ||
| Dispatching office upgrade | 20,150,635.75 | 20,150,635.75 | ||||
| Dalailong Railway Expansion and Renovation Project | 1,689,535,500.05 | 1,689,535,500.05 | 779,509,595.30 | 779,509,595.30 | ||
| Green Aggregate Development and Utilization Project in Rujiazhuang Mining Area, Linqu County | 42,946,341.00 | 42,946,341.00 | 27,528,097.93 | 27,528,097.93 | ||
| Green Transportation Products Industrial Park Project | 80,052,703.92 | 80,052,703.92 | ||||
| Others | 8,739,530.81 | 8,739,530.81 | 17,865,092.30 | 17,865,092.30 | ||
| Total | 8,494,931,085.91 | 14,170,000.00 | 8,480,761,085.91 | 2,530,414,811.07 | 2,530,414,811.07 | |
Unit: yuan Currency: CNY
| 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: Capitalized amount of current interest | Capitalization rate of current interest (%) | Capital source |
| Widening and reconstruction of Ganggou toll station | 35,000,000.00 | 16,629,812.91 | 1,162,486.42 | 13,886,325.89 | 3,905,973.44 | 50.84% | 50.84% | Have funds and own funds | ||||
| Reconstruction project of Jinghu expressway tunnel section | 74,893,482.25 | 72,637,476.85 | 72,073,834.81 | 563,642.04 | 100.00% | 100.00% | Have funds and own funds | |||||
| Beijing-Taipei Expressway Dezhou-Qihe Section Renovation Expansion Project | 11,904,333,557.00 | 1,390,342,323.00 | 4,738,315,577.98 | 6,128,657,900.98 | 51.51% | 51.51% | 108,377,862.53 | 100,360,888.70 | 0.41% | Borrowings and own funds | ||
| Weilai expressway assets transformation project. | 423,528,555.82 | 41,840,386.80 | 283,864,822.57 | 325,705,209.37 | - | 76.90% | 76.90% | Have funds and own funds | ||||
| Beijing-Taipei Expressway Jinan-Taian Section Renovation and Expansion Project | 6,622,000,000.00 | 473,623,631.48 | 473,623,631.48 | 7.15% | 7.15% | Borrowings and own funds | ||||||
| Pinglan line expansion and renovation | 1,200,000,000.00 | 2,535,784.37 | 2,535,784.37 | 0.21% | 0.21% | Have funds and own funds | ||||||
| 800,000t Cold Rolled Ribbed Steel Bar Project | 198,560,000.00 | 475,243.61 | 475,243.61 | - | 100.00% | 100.00% | Have funds and own funds | |||||
| Dispatching office upgrade | 28,338,200.00 | 20,150,635.75 | 20,150,635.75 | 88.99% | 88.99% | Have funds and own funds | ||||||
| Dalailong Railway Expansion and Renovation Project | 4,520,000,000.00 | 779,509,595.30 | 910,025,904.75 | 1,689,535,500.05 | 37.38% | 37.38% | 23,955,361.11 | 22,791,611.11 | 0.16% | Borrowings and own funds | ||
| Green Aggregate Development and Utilization Project in Rujiazhuang Mining Area, Linqu County | 108,000,000.00 | 27,528,097.93 | 15,418,243.07 | 42,946,341.00 | 39.77% | 39.77% | Have funds and own funds | |||||
| Green Transportation Products Industrial Park Project | 220,000,000.00 | 80,052,703.92 | 80,052,703.92 | 36.39% | 36.39% | Have funds and own funds | ||||||
| Total | 25,334,653,795.07 | 2,328,962,936.40 | 6,525,149,790.31 | 397,779,044.18 | 14,925,211.54 | 8,441,408,470.99 | / | / | 132,333,223.64 | 123,152,499.81 |
(3). Provision for impairment of construction in progress in the current period.
□ Applicable √ Not applicable
Other statements
□ Applicable √ Not applicable
Engineering material
(4). Project materials.
□ 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 statements
□ 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: CNY
| Item | Land use rights | Toll road franchise | Office software | Right of mining | Others | Total |
| I. Original book value | ||||||
| 1. Beginning balance | 1,775,169,575.51 | 47,778,171,656.16 | 71,085,537.56 | 458,257,172.82 | 12,718,368.44 | 50,095,402,310.49 |
| 2. Amount increased in the current period | 823,383,445.32 | 780,595,264.42 | 21,417,703.52 | 1,992,655.01 | 1,627,389,068.27 | |
| (1) Acquisition | 16,388,402.32 | 21,417,703.52 | 1,042,918.41 | 38,849,024.25 | ||
| (2) Investment construction | 780,595,264.42 | 780,595,264.42 | ||||
| (3) Business combination increased | ||||||
| (4) Others | 806,995,043.00 | 806,995,043.00 | ||||
| 3. Amount decreased in the current period | 31,746,190.52 | 25,747,496.22 | 384,625.38 | 57,878,312.12 | ||
| (1) Disposal | 31,746,190.52 | 25,747,496.22 | 384,625.38 | 57,878,312.12 | ||
| (2) Others | - | |||||
| 4. Ending balance | 2,566,806,830.31 | 48,533,019,424.36 | 92,118,615.70 | 458,257,172.82 | 14,711,023.45 | 51,664,913,066.64 |
| II. Accumulated amortization | - | |||||
| 1. Beginning balance | 700,421,389.57 | 6,986,891,297.60 | 37,476,369.79 | 40,119,444.44 | 747,588.74 | 7,765,656,090.14 |
| 2. Amount increased in the current period | 61,168,437.49 | 1,173,322,023.09 | 10,269,824.78 | 1,955,912.58 | 1,246,716,197.94 | |
| (1) Accrual | 61,168,437.49 | 1,173,322,023.09 | 10,269,824.78 | 1,955,912.58 | 1,246,716,197.94 | |
| (2) Business combination increased | - | |||||
| 3. Amount decreased in the current period | 1,347,651.14 | 1,670,433.04 | 172,020.51 | 3,190,104.69 | ||
| (1) Disposal | 1,347,651.14 | 1,670,433.04 | 172,020.51 | 3,190,104.69 | ||
| (2) Others | ||||||
| 4. Ending balance | 760,242,175.92 | 8,158,542,887.65 | 47,574,174.06 | 40,119,444.44 | 2,703,501.32 | 9,009,182,183.39 |
| 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 | 1,806,564,654.39 | 40,374,476,536.71 | 44,544,441.64 | 418,137,728.38 | 12,007,522.13 | 42,655,730,883.25 |
| 2. Beginning book value | 1,074,748,185.94 | 40,791,280,358.56 | 33,609,167.77 | 418,137,728.38 | 11,970,779.70 | 42,329,746,220.35 |
(2). Rights to use the Land with property right certificate not available.
□ Applicable √ Not applicable
Other statements:
√ Applicable □ Not applicable
The composition of expressway toll management rights is as follows:
| Item | Year-end balance | Balance at the beginning of the year | ||
| Original value | Book value | Original value | Book value | |
| Xuchang-Yuzhou Expressway | 1,159,917,671.59 | 710,851,501.32 | 1,158,874,198.71 | 738,134,328.37 |
| Jinan-Laiwu High-speed Railway | 4,240,696,715.25 | 2,267,361,750.44 | 4,224,737,881.59 | 2,438,482,662.86 |
| Weihai-Rushan Expressway | 1,913,708,210.91 | 1,036,143,925.82 | 1,913,708,210.91 | 1,100,235,547.63 |
| Jinan-Qingdao Expressway | 23,082,374,550.40 | 22,283,579,522.14 | 22,361,619,754.39 | 22,136,936,832.13 |
| Hengyang-Shaoyang Expressway | 4,813,253,975.14 | 4,130,783,426.06 | 4,836,519,500.00 | 4,248,859,159.13 |
| Lijin Bridge | 261,863,584.26 | 114,978,527.52 | 221,507,393.75 | 75,945,390.72 |
| Jiyuan-Jincheng Expressway | 2,219,258,040.46 | 1,611,705,065.63 | 2,219,258,040.46 | 1,658,556,061.74 |
| Wuhan-Jingmen Expressway | 10,841,946,676.35 | 8,219,072,817.78 | 10,841,946,676.35 | 8,394,130,375.98 |
| Total | 48,533,019,424.36 | 40,374,476,536.71 | 47,778,171,656.16 | 40,791,280,358.56 |
Unit: yuan Currency: CNY
| Item | Beginning balance | Amount increased in the current period | Amortization amount in the current period | Other decreased amount | Ending balance |
| Decoration cost and others | 2,423,554.12 | 4,427,490.06 | 1,142,910.20 | 5,708,133.98 | |
| Parking space rental | 5,700,000.00 | 250,000.00 | 5,450,000.00 | ||
| Total | 8,123,554.12 | 4,427,490.06 | 1,392,910.20 | 5,450,000.00 | 5,708,133.98 |
| Item | Ending balance | Beginning balance | ||
| Deductible temporary differences | Deferred income tax assets | Deductible temporary differences | Deferred income tax assets | |
| Asset impairment reserves | 278,625,990.32 | 67,113,395.45 | 275,950,961.00 | 66,699,825.98 |
| Internally unrealized profits | 38,160,850.64 | 9,540,212.66 | 38,299,245.81 | 8,324,775.30 |
| Deductible loss | 78,410,008.65 | 19,602,502.16 | 275,495,968.28 | 68,873,992.07 |
| Demolition loss | 1,280,676,564.78 | 320,169,141.20 | 1,245,810,060.69 | 311,452,515.18 |
| Deferred Income | 679,786,260.54 | 169,946,565.14 | 300,000,000.00 | 75,000,000.00 |
| Dismissal benefits | 255,409,735.94 | 63,391,890.26 | 266,417,483.38 | 66,019,182.99 |
| Estimated liabilities | 101,003,377.30 | 25,250,844.33 | 79,858,700.32 | 19,964,675.08 |
| Share-based payment | 18,429,300.00 | 4,607,325.00 | ||
| Total | 2,730,502,088.17 | 679,621,876.20 | 2,481,832,419.48 | 616,334,966.60 |
| 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 | 2,521,478,020.28 | 630,369,505.07 | 2,581,406,598.40 | 645,351,649.60 |
| Depreciation and amortization of long-term assets | 1,613,982,451.32 | 403,495,612.83 | 1,029,582,613.96 | 257,395,653.49 |
| Accelerated depreciation of fixed assets | 32,177,409.20 | 8,044,352.30 | 24,141,780.76 | 6,035,445.19 |
| Total | 4,167,637,880.80 | 1,041,909,470.20 | 3,635,130,993.12 | 908,782,748.28 |
| Item | Ending balance | Beginning balance |
| Deductible temporary differences | 64,120,005.53 | 32,876,444.87 |
| Deductible loss | 2,041,059,639.24 | 2,003,996,815.31 |
| Total | 2,105,179,644.77 | 2,036,873,260.18 |
| Year | Ending amount | Beginning amount | Note |
| 2020 | 317,803,240.98 | ||
| 2021 | 240,192,439.18 | 377,898,282.34 | |
| 2022 | 371,738,625.88 | 371,738,625.88 | |
| 2023 | 422,969,337.90 | 416,506,357.11 | |
| 2024 | 529,136,333.88 | 520,050,309.00 | |
| 2025 and beyond | 477,022,902.40 | ||
| Total | 2,041,059,639.24 | 2,003,996,815.31 | / |
| Item | Ending balance | Beginning balance | ||||
| Book balance | Impairment reserves | Book value | Book balance | Impairment reserves | Book value | |
| Advance payment for project | 1,759,900,789.04 | 1,759,900,789.04 | 1,923,575,663.99 | 1,923,575,663.99 | ||
| Total | 1,759,900,789.04 | 1,759,900,789.04 | 1,923,575,663.99 | 1,923,575,663.99 | ||
Unit: yuan Currency: CNY
| Item | Ending balance | Beginning balance |
| Mortgage loan | 60,000,000.00 | - |
| Guaranteed loan | 19,022,351.39 | 40,000,000.00 |
| Credit loan | 2,781,996,170.67 | 528,567,899.41 |
| Total | 2,861,018,522.06 | 568,567,899.41 |
| Variety | Ending balance | Beginning balance |
| Commercial acceptance bill | 186,356,624.59 | - |
| Bank acceptance bill | 89,716,204.50 | 33,211,430.37 |
| Total | 276,072,829.09 | 33,211,430.37 |
| Item | Ending balance | Beginning balance |
| Accounts payable | 4,667,741,873.74 | 5,020,997,647.35 |
| Total | 4,667,741,873.74 | 5,020,997,647.35 |
| Item | Ending balance | Reasons for non-payment or carry forward |
| China Railway 14th Bureau Group Co., Ltd. | 249,655,583.67 | The project has not yet completed with the final accounting |
| The First Construction Co., Ltd. of the Eighth Division of China Construction Corporation | 240,238,516.16 | The project has not yet completed with the final accounting |
| Qingdao Greenland Ecological Technology Co., Ltd. | 136,915,421.32 | The project has not yet completed with the final accounting |
| Yantai Railway Construction Administration | 97,562,800.00 | The project has not yet completed with the final accounting |
| Weifang Local Railway Administration | 32,214,148.00 | The project has not yet completed with the final accounting |
| Total | 756,586,469.15 | / |
| Item | Ending balance | Beginning balance |
| Deposit received | 69,254,472.77 | 86,920,719.72 |
| Total | 69,254,472.77 | 86,920,719.72 |
| Item | Ending balance | Beginning balance |
| Advance payment | 37,339,306.41 | 32,866,289.70 |
| Freight received in advance | 81,343,779.50 | 59,180,998.63 |
| Project payment received in advance | 42,901,617.86 | |
| Others | 91,743.12 | |
| Total | 118,774,829.03 | 134,948,906.19 |
Unit: yuan Currency: CNY
| Item | Beginning balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| I. Short-term payroll | 89,845,803.37 | 1,498,547,751.72 | 1,483,529,592.10 | 104,863,962.99 |
| II. Post-employment benefits - defined contribution plan | 424,729.08 | 154,569,464.53 | 154,929,258.55 | 64,935.06 |
| II. Dismissal benefits | 2,128,683.34 | 2,128,683.34 | ||
| IV. Other benefits due within one year | ||||
| Total | 90,270,532.45 | 1,655,245,899.59 | 1,640,587,533.99 | 104,928,898.05 |
| Item | Beginning balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| I. Wage, bonus, allowance and subsidy | 46,012,995.36 | 1,106,207,192.17 | 1,101,175,171.51 | 51,045,016.02 |
| II. Welfare benefits payable | 51,128.49 | 98,997,640.72 | 99,048,769.21 | |
| II. Social insurance charges | 10,908,889.56 | 106,650,510.07 | 107,623,023.32 | 9,936,376.31 |
| Including: medical insurance | 56,213,614.95 | 56,167,587.36 | 46,027.59 | |
| Work-related injury insurance premiums | 2,987,306.47 | 2,987,306.47 | ||
| Maternity insurance premium | 1,093,871.80 | 1,093,871.80 | ||
| Supplementary insurance | 10,908,889.56 | 46,355,716.85 | 47,374,257.69 | 9,890,348.72 |
| IV. Housing provident fund | 102,284,064.47 | 101,357,461.75 | 926,602.72 | |
| V. Labor union funds and employee education funds | 31,636,997.37 | 36,196,754.45 | 26,217,533.45 | 41,616,218.37 |
| VI Short-term paid absences | ||||
| VII. Short-term profit sharing plan | ||||
| VIII. Non-monetary Benefit | 218,624.24 | 218,624.24 | ||
| IX. Labor expenses | 1,235,792.59 | 47,992,965.60 | 47,889,008.62 | 1,339,749.57 |
| Total | 89,845,803.37 | 1,498,547,751.72 | 1,483,529,592.10 | 104,863,962.99 |
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Item | Beginning balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| 1. Basic endowment insurance | 75,705,289.40 | 75,705,289.40 | ||
| 2. Unemployment insurance premium | 3,232,377.66 | 3,232,377.66 | ||
| 3. Payment of enterprise annuity | 424,729.08 | 75,631,797.47 | 75,991,591.49 | 64,935.06 |
| Total | 424,729.08 | 154,569,464.53 | 154,929,258.55 | 64,935.06 |
| Item | Ending balance | Beginning balance |
| VAT | 172,683,975.10 | 108,354,041.08 |
| Turnover tax | 55,826.48 | 55,826.48 |
| Enterprise income tax | 352,420,122.35 | 621,905,055.87 |
| Individual income tax | 8,865,322.14 | 6,468,550.11 |
| Urban maintenance and construction tax | 8,988,011.06 | 6,435,938.29 |
| House property tax | 5,566,394.76 | 5,532,340.89 |
| Education surcharge | 7,059,718.96 | 4,354,730.72 |
| Land use tax | 1,324,411.77 | 1,784,155.98 |
| Stamp duty | 5,826,707.75 | 5,472,797.01 |
| Value-added tax on land | 10,632,887.68 | 35,512,966.90 |
| Others | 472,800.49 | 316,345.80 |
| Total | 573,896,178.54 | 796,192,749.13 |
| Item | Ending balance | Beginning balance |
| Dividends payable | 60,885,896.25 | 25,917,525.46 |
| Other payables | 3,423,415,991.89 | 2,634,683,270.79 |
| Total | 3,484,301,888.14 | 2,660,600,796.25 |
Interest payable
(1). Presentation of categories.
□ Applicable √ Not applicable
Dividends payable
(2). Presentation of categories.
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Item | Ending balance | Beginning balance |
| Common stock dividends | 43,208,818.62 | 25,917,525.46 |
| Preferred share/perpetual liability dividends divided into equity instrument | 17,677,077.63 | |
| Preferred stock\perpetual bond dividends | 17,677,077.63 | |
| Total | 60,885,896.25 | 25,917,525.46 |
| Item | Ending balance | Beginning balance |
| Project funds | 110,282,672.82 | 193,031,970.05 |
| Current accounts and advances on behalf of others | 379,626,433.30 | 443,475,615.12 |
| Current accounts of related parties outside the scope of consolidation。 | 2,736,753,991.61 | 1,705,813,352.38 |
| Collection of receivables from Shandong Hi-speed Xinlian Technology Co., Ltd. | 41,858,249.97 | |
| Project security and deposit | 101,683,002.79 | 39,422,303.45 |
| Equity transfer payable | 86,938,613.46 | 191,803,642.24 |
| Others | 8,131,277.91 | 19,278,137.58 |
| Total | 3,423,415,991.89 | 2,634,683,270.79 |
| Item | Ending balance | Reasons for non-payment or carry forward |
| Shandong Railway Investment Holding Group Co., Ltd. | 1,100,000,000.00 | Investment Fund for Capacity Expansion and Transformation of Dalailong |
| China Railway Jinan Bureau Group Co., Ltd. | 125,176,323.82 | Failure to meet the settlement condition |
| Henan JuKang Investment Co., Ltd | 55,438,613.46 | Failure to meet the settlement condition |
| Shanghai Zhida Technology (Group) Co., Ltd. | 31,500,000.00 | Failure to meet the settlement condition |
| Longkou Port Group Co., Ltd. | 24,621,590.40 | Failure to meet the settlement condition |
| Total | 1,336,736,527.68 | / |
| Item | Ending balance | Beginning balance |
| Long-term loan due within one year | 3,557,502,908.49 | 2,543,012,734.46 |
| Long-term payroll payable | 80,215,223.94 | 72,092,480.10 |
| Interest on undue long-term loans | 55,127,746.86 | 60,483,688.57 |
| Total | 3,692,845,879.29 | 2,675,588,903.13 |
| Item | Ending balance | Beginning balance |
| Short term bonds payable | 2,515,141,657.31 | 2,514,549,315.05 |
| Output VAT pending transfer | 14,683,604.39 | 11,194,078.09 |
| Total | 2,529,825,261.70 | 2,525,743,393.14 |
Increase and decrease of short-term bonds payable:
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| 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 |
| The seventh phase of ultra-short-term financing in 2019 | 100.00 | 9/19/2019 | 180 days | 1,500,000,000.00 | 1,512,992,876.69 | 9,433,352.82 | 1,522,426,229.51 | |||
| The tenth phase of ultra-short-term financing in 2019 | 100.00 | 12/13/2019 | 180 days | 1,000,000,000.00 | 1,001,556,438.36 | 13,148,479.67 | 1,014,704,918.03 | |||
| The first phase of ultra-short-term financing in 2020 | 100.00 | 3/13/2020 | 180 days | 1,000,000,000.00 | 1,000,000,000.00 | 12,082,191.78 | 1,012,082,191.78 | |||
| The second phase of ultra-short-term financing in 2020 | 100.00 | 3/19/2020 | 180 days | 1,000,000,000.00 | 1,000,000,000.00 | 11,638,356.16 | 1,011,638,356.16 | |||
| The third phase of ultra-short-term financing in 2020 | 100.00 | 4/15/2020 | 180 days | 1,000,000,000.00 | 1,000,000,000.00 | 8,876,712.33 | 1,008,876,712.33 | |||
| The fourth phase of ultra-short-term financing in 2020 | 100.00 | 6/8/2020 | 270 days | 1,000,000,000.00 | 1,000,000,000.00 | 10,208,219.18 | 1,010,208,219.18 | |||
| The fifth phase of ultra-short-term financing in 2020 | 100.00 | 9/30/2020 | 90 days | 1,000,000,000.00 | 1,000,000,000.00 | 5,671,232.88 | 1,005,671,232.88 | |||
| The sixth phase of ultra-short-term financing in 2020 | 100.00 | 10/16/2020 | 30 days | 1,000,000,000.00 | 1,000,000,000.00 | 1,808,219.18 | 1,001,808,219.18 | |||
| The seventh phase of ultra-short-term financing in 2020 | 100.00 | 11/11/2020 | 23 days | 1,500,000,000.00 | 1,500,000,000.00 | 1,795,890.41 | 1,501,795,890.41 | |||
| The fourth phase of ultra-short-term financing in 2020 | 100.00 | 11/12/2020 | 90 days | 1,500,000,000.00 | 1,500,000,000.00 | 4,933,438.13 | 1,504,933,438.13 |
| The eighth phase of ultra-short-term financing in 2020 | 100.00 | 12/2/2020 | 20 days | 1,000,000,000.00 | 1,000,000,000.00 | 1,041,095.89 | 1,001,041,095.89 | |||
| Total | / | / | / | 12,500,000,000.00 | 2,514,549,315.05 | 10,000,000,000.00 | 80,637,188.43 | 10,080,044,846.17 | 2,515,141,657.31 |
45. Long-term Loans
(1). Classification of long-term loan.
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Item | Ending balance | Beginning balance |
| Pledge borrowing | 19,749,468,195.96 | 24,119,080,000.00 |
| Mortgage loan | 224,000,000.00 | 150,000,000.00 |
| Guaranteed loan | 1,274,000,000.00 | 1,412,000,000.00 |
| Credit loan | 13,730,513,441.89 | 7,632,956,294.39 |
| Total | 34,977,981,637.85 | 33,314,036,294.39 |
Unit: yuan Currency: CNY
| Item | Ending balance | Beginning balance |
| Special payable | 307,170,000.00 | 307,170,000.00 |
| Total | 307,170,000.00 | 307,170,000.00 |
| Item | Ending balance | Beginning balance |
| Estimated expenses for early retired personnel | 214,288,788.88 | 226,850,277.65 |
| Total | 214,288,788.88 | 226,850,277.65 |
flow, time and uncertainty:
□ Applicable √ Not applicable
Explanation of significant actuarial assumptions and sensitivity analysis results of defined benefit plan
□ Applicable √ Not applicable
Other statements:
□ Applicable √ Not applicable
50. Estimated liabilities
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Item | Beginning balance | Ending balance | Causes |
| Pending litigation | 74,482,931.61 | 94,339,765.18 | Proceedings |
| Mine environment restoration and control | 14,778,754.70 | 14,778,754.70 | |
| Total | 89,261,686.31 | 109,118,519.88 | / |
| Item | Beginning balance | Increase in the Current Period | Decrease in the Current Period | Ending balance | Causes |
| Government subsidy | 930,284,109.40 | 431,010,797.92 | 60,093,957.33 | 1,301,200,949.99 | |
| Rental fees collected in advance | 277,609,119.12 | 36,053,552.24 | 21,349,771.29 | 292,312,900.07 | |
| Service charge collected in advance | 1,572,327.04 | 1,572,327.04 | |||
| Total | 1,209,465,555.56 | 467,064,350.16 | 83,016,055.66 | 1,593,513,850.06 | / |
Projects involved in government subsidies:
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| 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 | 457,500.00 | 1,181,875.00 | Asset related | |||
| Compensation for Construction of Interchange to Zero Interchange Section of Xiaoxujia Hub in Reconstruction and Expansion Project of Jinan-Qingdao Expressway | 300,000,000.00 | 313,976,662.50 | 25,559,066.52 | 588,417,595.98 | Asset related | ||
| Cancel the subsidy for provincial boundary toll station projects | 102,794,135.42 | 6,846,698.33 | 95,947,437.09 | Asset related | |||
| Special project fund for reconstruction of toll station of Lijin Yellow River Highway Bridge. | 10,680,000.00 | 14,240,000.00 | 82,297.49 | 24,837,702.51 | |||
| Enterprise agglomeration support fund | 5,000,000.00 | 5,000,000.00 | |||||
| Subsidy for Dalailong Railway Project | 30,000,000.00 | 2,626,728.12 | 27,373,271.88 | Asset related | |||
| Subsidy for Yiyang railway westward relocation project | 559,092,633.38 | 18,966,292.94 | 540,126,340.44 | ||||
| Subsidy for track slab project | 16,822,953.72 | 374,626.56 | 16,448,327.16 | Asset related | |||
| Office relocation reward | 7,049,147.30 | 180,747.37 | 6,868,399.93 | Asset related | |||
| Total | 930,284,109.40 | 431,010,797.92 | 60,093,957.33 | 1,301,200,949.99 | — |
52. Other non-current liabilities
□ Applicable √ Not applicable
53. Share Capital
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Beginning balance | Increase and decrease of this change (+, -) | Ending balance | |||||
| Issue the new shares | 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 | ||||
| Quantities | Book value | Quantities | Book value | Quantities | Book value | Quantities | Book value | |
| Bohai trust plan | 2,000,000,000.00 | 2,000,000,000.00 | ||||||
| Perpetual debt | 3,200,000,000.00 | 3,200,000,000.00 | ||||||
| Total | 2,000,000,000.00 | 3,200,000,000.00 | 2,000,000,000.00 | 3,200,000,000.00 | ||||
| Item | Beginning balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| Capital premium (share premium) | 4,836,763,252.70 | 9,220,036.64 | 3,116,311,939.25 | 1,729,671,350.09 |
| Other capital reserves | 18,429,300.00 | 18,429,300.00 | ||
| Total | 4,836,763,252.70 | 27,649,336.64 | 3,116,311,939.25 | 1,748,100,650.09 |
56. Treasury stock
□ Applicable √ Not applicable
57. Other comprehensive income
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Item | Beginning balance | Amount incurred in current period. | Ending balance | |||||
| Accrual before the income tax in the current period | Minus: Amount included in other comprehensive incomes in the previous period and transferred to profits or losses for the current period | Less: included in other comprehensive income in the previous period and transferred to retained earnings in the current period. | Minus: income tax expenses | 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 | |||||
| Where: 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 | -52,153,056.26 | -52,153,056.26 | -42,199,973.68 | ||||
| Including: other comprehensive income | 9,953,082.58 | -52,153,056.26 | -52,153,056.26 | - | ||||
| that can be included in profit or loss under the equity method. | 42,199,973.68 | |||||||
| 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 of financial statements denominated in foreign currency Difference | ||||||||
| Total of other comprehensive income | 9,953,082.58 | -57,335,983.09 | -57,335,983.09 | -47,382,900.51 |
58. Appropriate reserve
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Item | Beginning balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| Safe production costs | 82,671,061.69 | 16,222,137.30 | 3,238,742.44 | 95,654,456.55 |
| Total | 82,671,061.69 | 16,222,137.30 | 3,238,742.44 | 95,654,456.55 |
| Item | Beginning balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| Statutory surplus reserves | 3,164,742,776.43 | 224,206,066.70 | 3,388,948,843.13 | |
| Total | 3,164,742,776.43 | 224,206,066.70 | 3,388,948,843.13 |
| Item | Current period | Previous period |
| 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 -) | 394,584,686.98 | 317,793,490.49 |
| Undistributed profits at the beginning of the period after adjustment | 18,370,376,516.90 | 16,594,511,621.65 |
| Plus: Net profits attributable to owners of the parent company in the current period | 2,038,999,018.13 | 3,126,071,417.08 |
| Minus: Withdrawal of statutory surplus reserve | 224,206,066.70 | 271,952,038.65 |
| Withdrawal other common accumulation fund | ||
| Withdrawn general risk reserve | ||
| Common stock dividends payable | 1,828,243,025.66 | 1,068,786,407.72 |
| Ordinary stock dividend transferred to equity | ||
| Dividends payable on other equity instruments | 102,651,577.46 | 9,298,121.56 |
| Undistributed profits at the end of the period | 18,254,274,865.21 | 18,370,546,470.80 |
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 -169,953.90 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 period isaffected by 0 Yuan.
4. Due to the change of consolidation scope caused by the same control, the undistributed profit at thebeginning of the period is affected by 394,754,640.88 Yuan.
5. The total amount of other adjustments affects the undistributed profit at the beginning of the period is 0Yuan.
61. Operating Income and Operating Cost (1). Operating Income and Operating Cost
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Item | Amount incurred in current period | Amount incurred in previous period | ||
| Income | Cost | Income | Cost | |
| Main business | 11,182,923,943.23 | 7,520,580,755.20 | 10,231,366,764.32 | 5,726,016,263.96 |
| Other businesses | 182,240,837.92 | 39,896,245.07 | 183,183,361.88 | 38,157,352.20 |
| Total | 11,365,164,781.15 | 7,560,477,000.27 | 10,414,550,126.20 | 5,764,173,616.16 |
| Contract Classification | Operating income (current year) | Operating cost (current year) |
| Type of commodity | ||
| Main business | 11,182,923,943.23 | 7,520,580,755.20 |
| including toll revenue in Shandong Province | 4,829,952,422.22 | 2,577,352,852.82 |
| Toll revenue in Henan Province | 258,736,001.79 | 136,713,829.82 |
| Toll revenue of Hunan Province | 175,614,950.41 | 161,461,293.41 |
| Toll revenue in Hubei Province | 691,459,073.20 | 341,564,105.44 |
| revenue from railway transportation | 2,494,571,703.63 | 1,960,753,618.87 |
| Revenue from sales of goods | 1,791,583,327.91 | 1,474,542,403.13 |
| Revenue from project construction | 224,352,596.01 | 198,432,758.23 |
| Revenue from expressway trusteeship | 605,713,032.50 | 560,513,537.11 |
| Others | 110,940,835.56 | 109,246,356.37 |
| Other businesses | 182,240,837.92 | 39,896,245.07 |
| Including: Rental income | 82,225,399.91 | 19,749,647.09 |
| Others | 100,015,438.01 | 20,146,597.98 |
| Total | 11,365,164,781.15 | 7,560,477,000.27 |
| Contract Classification | Operating income (previous year) | Operating cost (previous year) |
| Type of commodity |
| Main business | 10,231,366,764.32 | 5,726,016,263.96 |
| including toll revenue in Shandong Province | 5,099,817,508.48 | 2,220,323,231.75 |
| Toll revenue in Henan Province | 453,063,208.51 | 153,136,023.07 |
| Toll revenue of Hunan Province | 216,322,139.16 | 166,788,260.13 |
| Toll revenue in Hubei Province | 959,396,341.57 | 362,092,086.65 |
| revenue from railway transportation | 2,050,262,501.61 | 1,668,995,170.99 |
| Revenue from sales of goods | 803,045,190.53 | 575,750,073.70 |
| Revenue from project construction | 51,958,017.94 | 20,341,060.43 |
| Revenue from expressway trusteeship | 511,942,321.26 | 493,448,468.15 |
| Others | 85,559,535.26 | 65,141,889.09 |
| Other businesses | 183,183,361.88 | 38,157,352.20 |
| Including: Rental income | 76,589,732.81 | 18,877,442.07 |
| Others | 106,593,629.07 | 19,279,910.13 |
| Total | 10,414,550,126.20 | 5,764,173,616.16 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Urban maintenance and construction tax | 26,425,498.29 | 25,705,609.29 |
| Education surcharge | 19,442,962.12 | 14,653,145.29 |
| House property tax | 14,218,576.26 | 17,914,135.61 |
| Land use tax | 6,138,274.89 | 8,094,250.37 |
| Vehicle and vessel use tax | 337,209.94 | 392,437.18 |
| Stamp duty | 9,848,491.17 | 7,401,120.56 |
| Value-added tax on land | 199,775.12 | |
| Others | 2,759,320.35 | 8,339,333.66 |
| Total | 79,170,333.02 | 82,699,807.08 |
Unit: yuan Currency: CNY
| Item | Amount incurred in current period | Amount incurred in previous period |
| Advertising expense | 232,741.40 | 235,849.05 |
| Operating cost | 2,445,032.31 | 3,702,144.43 |
| Packing expense | 2,756,216.72 | 2,724,888.48 |
| Transport expense | 1,714,332.32 | 5,810,211.49 |
| Employee compensation | 2,110,908.81 | 3,631,490.44 |
| Others | 1,350,941.98 | 877,981.55 |
| Total | 10,629,082.64 | 16,982,565.44 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Employee compensation | 350,668,007.31 | 366,757,017.72 |
| Depreciation and amortization expenses | 37,674,015.30 | 51,859,695.97 |
| Lease expenses | 11,139,054.83 | 14,861,831.54 |
| Agent fee | 31,424,287.90 | 28,300,522.20 |
| Others | 106,336,152.67 | 117,216,413.25 |
| Total | 537,241,518.01 | 578,995,480.68 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Material consumption | 2,038,351.14 | 1,940,561.27 |
| Labor cost | 30,094,370.49 | 18,417,516.52 |
| Depreciation expense | 4,713,864.20 | 8,831,013.73 |
| Technical service fee | 19,107,581.57 | 8,022,347.55 |
| Others | 11,678,651.77 | 3,037,286.19 |
| Total | 67,632,819.17 | 40,248,725.26 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Interest expense | 1,701,838,542.17 | 1,436,760,372.33 |
| -: Interest income | 93,867,234.96 | -297,069,626.74 |
| +: Exchange losses | ||
| Other expenditure | 836,831.77 | 2,393,584.69 |
| Total | 1,608,808,138.98 | 1,142,084,330.28 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Special fund for energy saving and emission reduction. | 457,500.00 | 457,500.00 |
| Compensation for Construction of Interchange to Zero Interchange Section of Xiaoxujia Hub in Reconstruction and Expansion Project of Jinan-Qingdao Expressway | 25,559,066.52 | |
| Cancel the subsidy for provincial boundary toll station projects | 6,763,543.33 | |
| Special project fund for reconstruction of toll station of Lijin Yellow River Highway Bridge. | 82,297.49 | |
| Enterprise agglomeration support fund | 5,000,000.00 | |
| Subsidy for Dalailong Railway Project | 2,626,728.12 | |
| Subsidy for Yiyang railway westward relocation project | 18,966,292.94 | 21,029,376.60 |
| Subsidy for track slab project | 374,626.56 | 374,626.56 |
| Office relocation reward | 180,747.37 | 4,867,397.57 |
| Special fund for enterprises supported by the government. | 6,500,000.00 | |
| Subsidy for enterprise research and development | 741,300.00 | 6,086,000.00 |
| 2019 economic development contribution award | 300,000.00 | |
| Subsidies for stabilizing posts | 814,402.82 | 154,213.13 |
| Refund of individual income tax | 61,388.15 | 62,229.72 |
| Others | 343,384.97 | 105,908.00 |
| Total | 62,271,278.27 | 39,637,251.58 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Long-term equity investment income calculated by the equity method | 570,339,660.39 | 376,523,816.81 |
| Investment income from disposal of long-term equity | 9,316,362.59 | 140,490,539.75 |
| Investment income of trading financial assets during the holding period. | 493,378,222.82 | 563,433,751.83 |
| Dividend income of other equity instrument investment during holding period | ||
| Interest income of debt investment during holding period | 399,342,008.52 | 67,634,504.06 |
| 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 | ||
| Gain from re-measurement of residual equity at the fair value after the control power is lost | 408,936,576.90 | |
| Total | 1,472,376,254.32 | 1,557,019,189.35 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Bad debt losses on notes receivable | 1,231,982.58 | -5,867,472.31 |
| Bad debt loss of accounts receivable | 14,247,979.85 | -8,128,496.55 |
| Bad debt loss of other receivables | -53,490,660.30 | 118,882,521.56 |
| Total | -38,010,697.87 | 104,886,552.70 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| I. Bad debt losses | ||
| II. Inventory falling price loss and contract | -52,733,558.21 | 737,101.08 |
| performance cost impairment loss | ||
| III. Impairment loss of long-term equity investment | ||
| IV. Impairment loss of investment property | ||
| V. Impairment loss of fixed asset | ||
| VI. Impairment loss of construction material | ||
| VII. Impairment loss of construction in progress | -13,147,000.00 | |
| VIII. Impairment loss of productive biological asset | ||
| IX. Impairment loss of oil and gas asset | ||
| X. Impairment loss of intangible asset | ||
| XI. Impairment loss of goodwill | ||
| 12. Miscellaneous | -3,817,928.62 | |
| Total | -69,698,486.83 | 737,101.08 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Income from disposal of non-current asset | 1,892,517.97 | -3,338,999.77 |
| Total | 1,892,517.97 | -3,338,999.77 |
| 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 | 10,408,785.48 | 3,823,633.69 | 10,408,785.48 |
| Including: Gains from disposal of fixed assets | 202,738.02 | 3,823,633.69 | 202,738.02 |
| Government subsidy | 21,596,821.32 | 22,229,600.00 | 21,596,821.32 |
| Income from highway assets and highway property compensations | 17,947,790.97 | 19,334,117.44 | 17,947,790.97 |
| Other profits | 61,178,624.69 | 43,698,493.25 | 61,178,624.69 |
| Total | 111,132,022.46 | 89,085,844.38 | 111,132,022.46 |
Government subsidies included in current profit and loss
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Subsidy project | Amount incurred in current period. | Amount incurred in prior period | Asset-related/income-related |
| Reward for enterprises above designated size in service industry in 2019 | 120,000.00 | Income related | |
| Incentive funds | 19,670,000.00 | 22,179,600.00 | Income related |
| Incentives (subsidies) related to the Investment Promotion Agreement of Kaifu District in 2019 | 1,688,100.00 | Income related | |
| Others | 118,721.32 | 50,000.00 | Income related |
| Total | 21,596,821.32 | 22,229,600.00 |
| 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 | 39,526,763.76 | 127,808,502.28 | 39,526,763.76 |
| Including: Losses on disposal of fixed assets | 39,526,763.76 | 127,808,502.28 | 39,526,763.76 |
| Donation | 4,300.00 | 423,000.00 | 4,300 |
| Penalty cost | 54,098.50 | 129,834.45 | 54,098.50 |
| Others | 16,717,805.54 | 38,904,947.61 | 16,717,805.54 |
| Total | 56,302,967.80 | 167,266,284.34 | 56,302,967.80 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Current income tax expense | 776,477,846.86 | 1,118,091,982.00 |
| Deferred income tax expense | 68,952,562.87 | 80,855,006.11 |
| Total | 845,430,409.73 | 1,198,946,988.11 |
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Item | Amount incurred in current period |
| Total profit | 2,984,865,809.58 |
| Income tax expense calculated according to legal/applicable tax rate | 746,216,452.40 |
| Impact of subsidiaries using different tax rates | -13,112,297.62 |
| Effect of income tax before adjustment | 35,958,902.13 |
| Effect of non-taxable income | -112,426,723.72 |
| Effect of non-deductible costs, expenses and losses | 53,927,773.13 |
| Effect of deductible loss of unrecognized deferred income tax assets in early use period | -5,922,577.98 |
| Effect of unrecognized deductible temporary difference or deductible loss of deferred income tax assets of current period | 146,610,134.50 |
| Impact of income tax on R&D expenditure plus deduction and intangible assets plus amortization. | -4,899,697.14 |
| Others | -921,555.97 |
| Income tax expense | 845,430,409.72 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Current account and deposit | 1,639,644,074.40 | 1,817,106,063.08 |
| Government subsidy | 454,784,940.18 | 77,087,539.32 |
| Income from highway assets and highway property compensations | 17,947,790.97 | 19,536,405.55 |
| Interest income | 33,245,038.05 | 36,474,923.87 |
| Rental income | 91,868,691.78 | 54,011,636.48 |
| Others | 273,796,923.18 | 125,896,562.42 |
| Total | 2,511,287,458.56 | 2,130,113,130.72 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Current account and deposit | 216,452,965.85 | 1,268,666,930.01 |
| Selling expenses | 10,629,082.64 | 17,699,800.48 |
| Management expenses | 176,388,409.34 | 160,507,385.90 |
| Research and development (R&D) expenses | 32,824,584.48 | 7,836,479.39 |
| Compensation for early opening to traffic | 20,847,871.42 | |
| Others | 421,552.06 | 6,042,412.35 |
| Total | 436,716,594.37 | 1,481,600,879.55 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Recovery of Loan from Puyuan Company | 534,921,186.42 | |
| Collect the funds from Shanghai Zhida | 4,586,476.11 | 14,259,505.32 |
| Recovery of Loan from the Group before Merger with the Rail Transit | 329,490,929.58 | 144,411,072.73 |
| Receivables from Kenxin Group | 173,267,045.05 | |
| Cash received from subsidiaries | 201,744,305.09 | |
| Total | 868,998,592.11 | 533,681,928.19 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Earnest money for equity acquisition | 400,000.00 | |
| Net cash received from disposal of subsidiaries | 10,441,593.13 | |
| Total | 10,841,593.13 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Investment Fund for Capacity Expansion and Transformation of Dalailong | 600,000,000.00 | |
| Recovered bill security deposit | 23,611,355.51 | |
| Total | 600,000,000.00 | 23,611,355.51 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Repayment of Trust No. 1 Fund | 2,000,000,000.00 | |
| Pay for the equity transfer of Rail Transit | 3,487,254,636.00 | |
| Trust loan guarantee fund | 29,000,000.00 | |
| Underwriting fee for short-term securities lending | 10,663,814.22 | 5,075,113.39 |
| Total | 5,497,918,450.22 | 34,075,113.39 |
| Supplementary data | Amount in current period | Amount in previous period |
| 1. Adjust net profit to cash flows from operating activities: | ||
| Net Profits | 2,139,435,399.85 | 3,211,179,268.17 |
| +: Asset impairment reserves | 69,698,486.83 | -737,101.08 |
| Credit impairment loss | 38,010,697.87 | -104,886,552.70 |
| Depreciation of fixed assets, loss of oil and gas assets and depreciation of productive biological assets | 1,101,004,665.47 | 869,725,369.68 |
| Amortization of intangible assets | 1,246,716,197.94 | 939,800,629.07 |
| Amortization of long-term prepaid expenses | 1,392,910.20 | 1,821,950.07 |
| Loss from disposal of fixed asset, intangible asset and other long-term asset (marked with "-" for earnings) | -1,892,517.97 | 5,589,391.15 |
| Loss from retirement of fixed assets (earnings are listed with "-") | 29,117,978.28 | 127,808,502.28 |
| Loss from fair value change (earnings are listed with "-") | ||
| Financial expenses (earnings are listed with "-") | 1,701,838,542.17 | 1,503,913,620.30 |
| Investment losses (earnings are listed with "-") | -1,472,376,254.32 | -1,557,019,189.35 |
| Decrease in deferred income tax assets (increase is listed with "-") | -63,286,909.60 | 38,336,270.04 |
| Increase in deferred income tax liabilities (decrease is listed with "-") | 133,126,721.92 | 42,282,824.68 |
| Decrease in inventories (increase is listed with "-") | 471,759,511.59 | -575,529,448.58 |
| Decrease in operational receivables (increase is listed with "-") | -19,959,368.56 | 2,242,927,497.40 |
| Increase in operational payables (decrease in listed with "-") | -1,065,498,986.89 | -281,620,931.06 |
| Others | ||
| Net cash flow from operating activities | 4,309,087,074.78 | 6,463,592,100.07 |
| 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 | 2,189,250,756.04 | 1,769,343,057.09 |
| Minus: Cash balance at the beginning of the period | 1,769,343,057.09 | 1,684,835,153.05 |
| Plus: Ending balance of cash equivalents | ||
| Minus:Beginning balance of cash equivalents | ||
| Net increase in cash and cash equivalents | 419,907,698.95 | 84,507,904.04 |
| Amount | |
| Cash or cash equivalents paid in the current period by business combination occurring in the current period | 1,376,700.00 |
| Including Shandong Ludao Construction Engineering Co., Ltd. | 1,376,700.00 |
| -: cash and cash equivalents held by subsidiaries on the purchased date | 567,754.98 |
| Including Shandong Ludao Construction Engineering Co., Ltd. | 567,754.98 |
| +: cash or cash equivalents paid in the current period by business combination occurring in the prior period | |
| Including Shandong Ludao Construction Engineering Co., Ltd. | |
| Net cash paid by subsidiaries | 808,945.02 |
| Amount | |
| Cash or cash equivalents received from disposal of subsidiaries in the current period. |
| Where: Shandong Hi-Speed New Material Technology Co., Ltd. | |
| Jinan Changying Jin'an Limited Partnership (Limited Partnership) | |
| Shandong Zhonglan Railway Operation Co., Ltd. | |
| Less: cash and cash equivalents held by the subsidiaries on the date of loss of control over the subsidiaries | 10,441,593.13 |
| Where: Shandong Hi-Speed New Material Technology Co., Ltd. | 5,484,427.37 |
| Jinan Changying Jin'an Limited Partnership (Limited Partnership) | 4,945,457.57 |
| Shandong Zhonglan Railway Operation Co., Ltd. | 11,708.19 |
| Plus: cash or cash equivalents received from disposal of subsidiaries in the previous period. | |
| Where: Shandong Hi-Speed New Material Technology Co., Ltd. | |
| Jinan Changying Jin'an Limited Partnership (Limited Partnership) | |
| Shandong Zhonglan Railway Operation Co., Ltd. | |
| Net cash received from disposal of subsidiaries | -10,441,593.13 |
| Item | Ending balance | Beginning balance |
| I. Cash | 2,189,250,756.04 | 1,769,343,057.09 |
| Where: Including: cash on hand | 77,179.92 | 146,872.71 |
| Bank deposits that can be used for payment at any time | 2,189,173,576.12 | 1,769,196,184.38 |
| 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 | ||
| Where: Bond investment due within three months | ||
| Balance of ending cash and cash equivalents | 2,189,250,756.04 | 1,769,343,057.09 |
| Where: Cash and cash equivalents of parent company or group, which use right is restricted for subsidiaries |
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Item | Ending book value | Restriction reason |
| Monetary funds | 71,537,681.93 | frozen amount due to litigation, security deposit |
| Fixed assets | 30,790,608,704.29 | Pledge borrowing |
| Intangible assets | 262,560,662.30 | Mortgage loan |
| Fixed assets | 21,892,958.90 | Mortgage loan |
| Receivables financing | 57,000,000.00 | Pledged |
| Total | 31,203,600,007.42 | / |
| Variety | Amount | Presented items | Amount included in the profit and loss of the current period |
| Reward for enterprises above designated size in service industry in 2019 | 120,000.00 | Non-operating income | 120,000.00 |
| Incentive funds | 19,670,000.00 | Non-operating income | 19,670,000.00 |
| Investment promotion awards of Kaifu District in 2019 | 1,688,100.00 | Non-operating income | 1,688,100.00 |
| Special fund for energy saving and emission reduction. | 1,181,875.00 | Deferred income/other income | 457,500.00 |
| Compensation for Construction of Interchange to Zero Interchange Section of Xiaoxujia Hub in Reconstruction and Expansion Project of Jinan-Qingdao Expressway | 588,417,595.98 | Deferred income/other income | 25,559,066.52 |
| Cancel the subsidy for provincial boundary toll station projects | 95,947,437.09 | Deferred income/other income | 6,763,543.33 |
| Special project fund for reconstruction of toll station of Lijin Yellow River | 24,837,702.51 | Deferred income/other income | 82,297.49 |
| Highway Bridge. | |||
| Enterprise agglomeration support fund | Deferred income/other income | 5,000,000.00 | |
| Subsidy for Dalailong Railway Project | 27,373,271.88 | Deferred income/other income | 2,626,728.12 |
| Subsidy for Yiyang railway westward relocation project | 540,126,340.44 | Deferred income/other income | 18,966,292.94 |
| Subsidy for track slab project | 16,448,327.16 | Deferred income/other income | 374,626.56 |
| Office relocation reward | 6,868,399.93 | Deferred income/other income | 180,747.37 |
| Subsidy for enterprise research and development | 741,300.00 | Other income | 741,300.00 |
| 2019 economic development contribution award | 300,000.00 | Other income | 300,000.00 |
| Subsidies for stabilizing posts | 814,402.82 | Other income | 814,402.82 |
| Refund of individual income tax | 5,053,293.99 | Other income | 61,388.15 |
| Others | 1,333,424.88 | Non-operating income | 462,106.29 |
| Total | 1,330,432,873.81 | 83,868,099.59 |
| Name of the Acquiree | Time point for acquisition of share | Cost for acquisition of share | Proportion of share acquired (%) | Method of share acquisition | Date of Purchase | Reference for Determination of Purchased Date | The income of the Acquiree from the purchased date till the end of period | Net profit of the Acquiree from the purchased date till the end of period |
| Shandong Ludao Construction Engineering Co., Ltd. | July 1, 2020 | 1,376,700.00 | 100 | Acquisition | July 1, 2020 | Equity transfer procedures completed | 59,359,809.48 | 1,826,862.84 |
(2). Cost of business combination and goodwill
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Cost of business combination | Shandong Ludao Construction Engineering Co., Ltd. |
| - Cash | 1,376,700.00 |
| - Fair value of non-cash assets | |
| -- Fair value of debt issued or committed | |
| -- Fair value of equity securities issued | |
| -- Fair value of contingent consideration | |
| -- Fair value on the purchase date of share held before that date | |
| - Others | |
| Merger cost in total | 1,376,700.00 |
| -: fair value share of identifiable net assets acquired | 1,376,700.00 |
| Amount of goodwill/merger cost less than the share of fair value of identifiable net asset acquired |
| Shandong Ludao Construction Engineering Co., Ltd. | ||
| Fair value on the purchased date | Book value on the purchased date | |
| Assets: | 9,781,934.15 | 8,832,197.55 |
| Monetary funds | 567,754.98 | 567,754.98 |
| Prepayment | 10,800.00 | 10,800.00 |
| Other receivables | 6,010,438.00 | 6,010,438.00 |
| Stock | 378,675.81 | 378,675.81 |
| Other current assets Production | 159,494.61 | 159,494.61 |
| Fixed assets | 1,705,034.15 | 1,705,034.15 |
| Intangible assets | 949,736.60 | |
| Liabilities: | 8,405,234.15 | 8,167,800.00 |
| Deposit received | 8,167,800.00 | 8,167,800.00 |
| Deferred income tax liabilities | 237,434.15 | |
| Net Assets | 1,376,700.00 | 664,397.55 |
| Where: Minority equity | ||
| Net assets acquired Production | 1,376,700.00 | 664,397.55 |
Unit: yuan Currency: CNY
| 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 | Equity transfer procedures completed | 1,674,002,364.59 | 181,832,760.37 | 2,969,781,762.75 | 145,464,496.57 |
(2). Combined cost
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| 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: | 9,688,146,963.47 | 7,663,235,365.39 |
| Monetary funds | 478,680,736.10 | 134,344,159.45 |
| Notes receivable | 111,481,973.89 | |
| Receivable | 458,859,068.64 | 209,717,407.92 |
| Receivables financing | 179,877,623.78 | 108,547,434.59 |
| Prepayment | 192,349,174.52 | 134,023,693.87 |
| Other receivables | 1,285,554,347.07 | 597,756,739.71 |
| Stock | 141,865,223.86 | 360,104,955.29 |
| Contract assets | 83,672,971.07 | |
| Other current assets | 51,453,349.82 | 101,810,150.13 |
| Long-term equity investments | 416,000,000.00 | 120,000,000.00 |
| Other equity instrument investment | 331,626,837.00 | 331,626,837.00 |
| Investment real estates | 706,236.71 | |
| Fixed assets | 2,878,782,179.29 | 3,244,273,618.06 |
| Construction in process | 873,144,034.59 | 959,055,743.57 |
| Intangible assets | 1,832,428,933.24 | 1,071,975,021.24 |
| Long-term deferred expenses | 360,577.83 | 373,996.83 |
| Deferred income tax assets | 65,474,435.95 | 63,578,521.55 |
| Other non-current assets | 417,311,234.00 | 114,565,112.29 |
| Liabilities: | 5,657,590,382.38 | 4,676,422,514.91 |
| Short-term loans | 134,500,000.00 | 63,805,433.66 |
| Notes payable | 68,982,756.25 | 33,211,430.37 |
| Payables | 438,783,491.62 | 573,339,143.29 |
| Deposit received | 51,062,538.77 | 140,839,172.02 |
| Contract liabilities | 91,835,418.41 | |
| Payroll payable | 50,005,045.89 | 84,565,067.47 |
| Taxes payable | 44,267,703.18 | 148,361,545.69 |
| Dividends payable | 30,202,210.62 | 28,507,700.02 |
| Other payables | 2,654,464,429.38 | 1,554,872,351.74 |
| Other non-current liabilities due within one year | 68,338,238.18 | 23,479,196.67 |
| Other current liabilities | 7,609,324.19 | |
| Long-term Loans | 1,221,623,247.28 | 1,173,838,169.13 |
| Long-term payroll payable | 100,467,203.98 | 99,476,049.99 |
| Special payable | 13,170,000.00 | 13,170,000.00 |
| Payables | 75,092,626.46 | 89,261,686.31 |
| Deferred Income | 6,035,445.19 | 643,660,123.36 |
| Deferred income tax liabilities | - | 6,035,445.19 |
| Net Assets | 4,030,556,581.09 | 2,986,812,850.48 |
| Where: Minority equity | 2,308,295,588.47 | 1,832,161,487.40 |
| Net assets acquired | 1,722,260,992.62 | 1,154,651,363.08 |
4. Disposal of subsidiaries
Whether there is single time disposal of the investment in the subsidiary, i.e. loss of control
□ Applicable √ Not applicable
Other statements:
□ Applicable √ Not applicable
5. Change of consolidation scope for other reasons
Explain the changes in the scope of consolidation caused by other reasons (such as the establishment of new subsidiaries, liquidation of subsidiaries, etc.) and relevantinformation:
√ Applicable □ Not applicable
In March 2020, Shandong Hi-speed Rail Transit Group Co., Ltd., a subsidiary of the Company, transferred 35% of the equity of Shandong Hi-speed New MaterialTechnology Co., Ltd. to Shandong High Speed Materials Group Co., Ltd. After the transfer, the equity ratio of Shandong Hi-speed New Material Technology Co., Ltd.held by the Company was changed to 16%, so it was not included in the scope of merger.In 2020, the Company withdrawn its capital contribution to Jinan Changying Jinan Limited Partnership (Limited Partnership), Bohai Trust ? 2019 Industrial InvestmentNo. 01 Collective Capital Trust Plan, and newly established Jinan Changying Jinyun Equity Investment Partnership (Limited Partnership) as well as Shandong Hi-Speed Sulianyun Technology Co., Ltd. The Company no longer controls Shandong Zhonglan Railway Operation Co., Ltd., so it is not included in the scope of merger.
6. Other
□ Applicable √ Not applicable
IX. Equity in other subjects
1. Equities in subsidiaries
(1) Construction of the Group
√ 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 | 100.00 | Investment and establishment | |
| Shandong Hi-speed Environmental Technology Co., Ltd. | Shandong | Shandong | Environmental protection industry | 60.01 | Investment and establishment | |
| Shandong Hi-Speed Jidong Development Co., Ltd. | Shandong | Shandong | Investment and | 60.00 | Investment and establishment | |
| development | ||||||
| Shandong Hi-Speed (Shenzhen) Investment Co., Ltd. | Guangdong Province | Guangdong Province | Investment and development | 55.00 | Investment and establishment | |
| Yantai Hesheng Real Estate Development Co., Ltd. | Shandong | Shandong | Investment and development | 100.00 | Business combination not under common control | |
| Shandong Hi-Speed Industrial Development Co., Ltd. | Shandong | Shandong | Property management | 60.00 | Investment and establishment | |
| Shandong Lijin Huanghe Highway and Bridge Co., Ltd. | Shandong | Shandong | Highway management | 65.00 | Business combination under same control | |
| Shandong Hi-Speed Henan Development Co., Ltd. | Henan Province | Henan Province | Investment and development | 60.00 | Investment and establishment | |
| Shandong Hi-Speed Henan Xuyu Road Co., Ltd. | Henan Province | Henan Province | Highway management | 60.00 | Investment and establishment | |
| Jiyuan City Jijin Expressway Co., Ltd. | Henan Province | Henan Province | Highway management | 54.00 | Business combination not under common control | |
| Hunan Hengshao Expressway Co., Ltd. | Hunan | Hunan | Highway management | 70.00 | Business combination not under common control | |
| Shandong Hi-Speed Hunan Development Co., Ltd. | Hunan | Hunan | Investment and development | 100.00 | Investment and establishment | |
| Shandong Hi-Speed Qilu Construction Transport Administration Service Co., Ltd. | Shandong | Shandong | Agency service | 100.00 | Business combination under same control | |
| Hubei Wujing Expressway Development Co., Ltd. | Hubei province | Hubei province | Highway management | 60.00 | 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 | 100.00 | Investment and establishment | |
| Jinan Jinming Investment Partnership (Limited Partnership) | Shandong | Shandong | Equity investment | 100.00 | Investment and establishment | |
| Shenzhen Lupeng Investment Partnership (limited partnership) | Guangdong Province | Guangdong Province | Investment business | 100.00 | Investment and establishment | |
| Qingdao Changying Jinpeng Equity Investment Partnership (Limited Partnership) | Shandong | Shandong | Investment business | 30.75 | 69.18 | Investment and establishment |
| Jinan Changying Jinyun Equity Investment Partnership (Limited Partnership) | Shandong | Shandong | Investment business | 100.00 | Investment and establishment | |
| Shandong Hi-Speed Sulianyun Technology Co., Ltd. | Shandong | Shandong | Investment business | 100.00 | Investment and establishment | |
| Shandong Hi-speed Rail Transit Group Co., Ltd. | Shandong | Shandong | Railway transport | 51.00 | Business combination under same control | |
| Shandong Dalailong Railway Co., Ltd. | Shandong | Shandong | Railway transport | 41.01 | Business combination under same control | |
| Shandong High Speed Railway Construction Equipment Co., Ltd. | Shandong | Shandong | Railway building materials | 17.85 | Business combination under same control | |
| Shandong Ruitong Logistics Co., Ltd. | Shandong | Shandong | Business transportation | 35.70 | Business combination under same control | |
| Shandong Shouping Railway Co., Ltd. | Shandong | Shandong | Railway transport | 30.48 | Business combination under same control | |
| Shandong Ruiyuan Logistics Co., Ltd. | Shandong | Shandong | Business transportation | 33.15 | Business combination under same control | |
| Shandong Hi-Speed Transportation Equipment Co., Ltd. | Shandong | Shandong | Highway building materials | 22.31 | Business combination under same control | |
| Shandong Ludao Construction Engineering Co., Ltd. | Shandong | Shandong | Construction service | 51.00 | Business combination not under common control |
None.Other statements:
None.
(2). Major non-wholly-owned subsidiaries
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Name of Subsidiary | Minority shareholders’ shareholding ratio | Profit and loss attributable to minority shareholders in the current period | Dividends declared to minority shareholders in the current period | Balance of minority shareholders’ equity at the end of the period |
| Shandong Hi-Speed Henan Development Co., Ltd. | 40.00% | 11,122,124.82 | 51,900,000.00 | 352,659,828.47 |
| Hunan Hengshao Expressway Co., Ltd. | 30.00% | -55,308,471.00 | -264,115,799.51 | |
| Hubei Wujing Expressway Development Co., Ltd. | 40.00% | 15,292,075.37 | 1,126,625,052.84 | |
| Shandong Hi-speed Rail Transit Group Co., Ltd. | 49.00% | 159,128,765.16 | 237,160,000.00 | 1,704,258,550.79 |
| Shandong High Speed Railway Construction Equipment Co., Ltd. | 65.00% | 70,029,117.62 | 26,021,564.05 | 387,352,871.98 |
| Shandong Dalailong Railway Co., Ltd. | 19.59% | -13,670,107.61 | 90,136,832.03 |
| Name of | Ending balance | Beginning balance |
| Subsidiary | 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. | 245,107,807.99 | 2,481,509,954.21 | 2,726,617,762.20 | 362,394,469.17 | 1,317,933,320.63 | 1,680,327,789.80 | 493,611,411.07 | 2,511,643,267.48 | 3,005,254,678.55 | 393,826,302.04 | 1,538,292,787.08 | 1,932,119,089.12 |
| Hunan Hengshao Expressway Co., Ltd. | 101,149,803.21 | 4,154,981,984.80 | 4,256,131,788.01 | 2,288,507,062.60 | 2,848,010,723.76 | 5,136,517,786.36 | 91,070,317.34 | 4,279,221,747.53 | 4,370,292,064.87 | 2,160,794,414.54 | 2,905,522,078.69 | 5,066,316,493.23 |
| Hubei Wujing Expressway Development Co., Ltd. | 117,198,138.54 | 8,350,322,664.96 | 8,467,520,803.50 | 844,155,024.45 | 4,806,803,146.96 | 5,650,958,171.41 | 69,082,213.21 | 8,520,663,387.64 | 8,589,745,600.85 | 512,392,174.40 | 5,299,020,982.78 | 5,811,413,157.18 |
| Shandong Hi-speed Rail Transit Group Co., Ltd. | 2,512,483,290.56 | 7,561,551,912.36 | 10,074,035,202.92 | 3,778,159,642.41 | 2,124,092,738.17 | 5,902,252,380.58 | 1,757,786,514.85 | 5,905,448,850.54 | 7,663,235,365.39 | 2,650,981,040.93 | 2,025,441,473.98 | 4,676,422,514.91 |
| Shandong High Speed Railway Construction Equipment Co., Ltd. | 517,537,220.37 | 395,203,898.36 | 912,741,118.73 | 313,323,129.62 | 19,337,965.96 | 332,661,095.58 | 448,836,612.75 | 308,476,037.54 | 757,312,650.29 | 223,997,898.69 | 20,938,657.01 | 244,936,555.70 |
| Shandong Dalailong Railway | 277,602,671.17 | 2,681,293,935.84 | 2,958,896,607.01 | 1,548,999,576.62 | 949,909,561.23 | 2,498,909,137.85 | 136,251,379.43 | 2,007,067,715.95 | 2,143,319,095.38 | 684,340,037.07 | 932,170,466.82 | 1,616,510,503.89 |
Co., Ltd.
| Name of Subsidiary | Amount incurred in current period | Amount incurred in previous period | ||||||
| Operation revenue | Net Profits | Total Comprehensive Income | Cash Flow from Operating Activities | Operation revenue | Net Profits | Total Comprehensive Income | Cash Flow from Operating Activities | |
| Shandong Hi-Speed Henan Development Co., Ltd. | 264,515,118.35 | 25,054,382.97 | 25,054,382.97 | 128,921,590.99 | 456,296,607.23 | 140,771,415.02 | 140,771,415.02 | 339,660,954.18 |
| Hunan Hengshao Expressway Co., Ltd. | 175,878,961.46 | -184,361,569.99 | -184,361,569.99 | 158,509,407.08 | 216,350,710.59 | -189,559,163.72 | -189,559,163.72 | 144,654,111.87 |
| Hubei Wujing Expressway Development Co., Ltd. | 712,055,229.68 | 38,230,188.42 | 38,230,188.42 | 483,269,403.28 | 974,463,582.34 | 298,708,441.22 | 298,708,441.22 | 781,130,344.54 |
| Shandong Hi-speed Rail Transit Group Co., Ltd. | 4,344,913,670.72 | 317,061,532.24 | 317,061,532.24 | 68,974,494.22 | 2,969,781,762.75 | 145,464,496.57 | 144,964,498.83 | 962,541,550.94 |
| Shandong High Speed Railway Construction Equipment Co., Ltd. | 693,480,603.39 | 107,737,104.03 | 107,737,104.03 | 87,470,443.48 | 624,222,722.28 | 72,319,473.01 | 72,319,473.01 | 46,124,860.55 |
| Shandong Dalailong Railway Co., Ltd. | 332,676,485.93 | -69,781,049.57 | -69,781,049.57 | 3,419,099.80 | 298,875,204.49 | -34,510,630.77 | -34,510,630.77 | 10,381,576.40 |
(5). Financial or other support provided to structured entities included in the consolidated financial statements.
□ Applicable √ Not applicable
Other statements:
□ Applicable √ Not applicable
2. Changes in the owners' equity share in a subsidiary, with control of the transaction of the subsidiary
√ Applicable □ Not applicable
(1) Description of changes in shares of owners' equity in the subsidiary companies
√ Applicable □ Not applicable
Changes in shares of owners' equity in the subsidiary companies
| Transaction type | Company name | Time | Percentage of transaction | Year-end shareholding ratio |
| Disposal of partial equity | Shandong Hi-Speed (Shenzhen) Investment Co., Ltd. | November 2020 | 45.00 | 55.00 |
| Increase of registered capital | Shandong Ruitong Logistics Co., Ltd. | October 2020 | 30.00 | 70.00 |
| Shandong Hi-Speed (Shenzhen) Investment Co., Ltd. | Shandong Ruitong Logistics Co., Ltd. | |
| Purchase cost/disposal consideration | 290,313,900.00 | 42,857,100.00 |
| - Cash | 290,313,900.00 | 42,857,100.00 |
| - Fair value of non-cash assets | ||
| Total purchase cost/disposal consideration | 290,313,900.00 | 42,857,100.00 |
| Less: share of net assets of subsidiaries calculated according to the proportion of equity acquired/disposed. | 277,198,244.63 | 65,915,496.78 |
| Difference | 13,115,655.37 | 23,058,396.78 |
| Including: adjusted capital reserve | 13,115,655.37 | 23,058,396.78 |
| Adjustment of surplus reserve | ||
| Undistributed profits |
3. Equity in joint ventures or associates
√ Applicable □ Not applicable
(1). Important joint ventures or associated enterprises
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| 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 | 11.87 | Equity method | |
| Shandong Hi-speed Logistics Group Co., Ltd. (hereinafter referred to as "Logistics Group"). | Shandong | Shandong | Logistics management | 25.00 | Equity method | |
| Dongxing Securities Co., 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 | |
| Guangdong Provincial Expressway Development Co., Ltd. | Guangdong Province | Guangdong Province | Highway operation | 9.68 | Equity method | |
□ Applicable √ Not applicable
(3) Main financial information of important associated enterprises
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Ending Balance/Amount Incurred in the Current Period | Opening balance/Amount Incurred in the Previous Period | ||
| Logistics Group | Weihai Shanghang | Logistics Group | |
| Current Assets | 2,930,928,006.85 | 35,252,587,849.94 | 2,546,773,171.63 |
| Including: cash and cash equivalents | 806,236,469.11 | 21,203,835,612.72 | 440,278,098.82 |
| Non-current Assets | 2,941,790,879.26 | 189,224,538,017.42 | 2,352,417,423.74 |
| Total Assets | 5,872,718,886.11 | 224,477,125,867.36 | 4,899,190,595.37 |
| Current Liabilities | 2,162,194,643.83 | 175,130,195,960.05 | 1,230,877,721.79 |
| Non-current Liabilities | 511,138,497.11 | 31,116,402,774.55 | 825,376,333.13 |
| Total liabilities | 2,673,333,140.94 | 206,246,598,734.60 | 2,056,254,054.92 |
| Minority equity | 340,634,778.89 | 524,552,880.08 | 72,933,474.52 |
| Equity attributable to shareholders of parent company | 2,858,750,966.28 | 17,705,974,252.68 | 2,770,003,065.93 |
| Net assets shares counted based on shareholding ratio | 714,687,741.57 | 2,471,754,005.67 | 692,500,766.48 |
| Adjustment items | 187,700,346.47 | ||
| - Goodwill | 84,054,761.12 | ||
| -Internally unrealized profits | |||
| - Others | 103,645,585.35 | ||
| Book value for equity investment of associated enterprises | 710,448,432.75 | 2,659,454,352.14 | 692,500,766.48 |
| The fair value of equity investment in joint ventures with open bids. | |||
| Operation revenue | 4,798,730,645.97 | 10,594,040,754.28 | 2,329,689,661.91 |
| Financial expenses | 34,000,820.75 | 39,932,851.38 | |
| Income tax expense | 46,831,460.23 | 321,013,946.34 | 29,163,361.14 |
| Net Profits | 71,822,621.05 | 1,603,541,514.84 | 42,662,769.46 |
| Discontinued operating net profit | |||
| Other comprehensive income | 18,008,112.96 | ||
| Total Comprehensive Income | 71,822,621.05 | 1,621,549,627.80 | 42,662,769.46 |
| Dividends received from the associated enterprise during the current year. | 32,186,991.00 | ||
Weihai City Commercial Bank, listed on the Hong Kong Stock Exchange in October 2020, is expected todisclose its annual report in April, so the Company will not disclose its financial information.
(4). Summary of unimportant financial information of joint ventures and associated enterprises.
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Ending Balance/Amount Incurred in the Current Period | Opening balance/Amount Incurred in the Previous Period | |
| Joint ventures: | ||
| Total book value of investments | 109,487,773.41 | 56,522,735.67 |
| Total amount of the following items calculated according to shareholding ratio | ||
| - Net profit | 1,965,037.74 | 5,383,018.25 |
| - Other comprehensive income | ||
| - Total comprehensive income | 1,965,037.74 | 5,383,018.25 |
| Associated enterprises: | ||
| Total book value of investments | 5,365,312,988.47 | 4,737,416,825.35 |
| Total amount of the following items calculated according to shareholding ratio | ||
| - Net profit | 187,985,695.38 | 64,238,113.56 |
| - Other comprehensive income | ||
| - Total comprehensive income | 187,985,695.38 | 64,238,113.56 |
reduce these risks are as follows. The management level of the Group manages and monitors these exposuresto ensure 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 risks and returns,reduce the negative impact of risk on the Group's business performance to the lowest level, and maximizethe interests of shareholders and other equity investors. Based on this risk management objective, the basicstrategy of the group's risk management is to determine and analyze all kinds of risks faced by the Group,establish appropriate risk tolerance bottom line and carry out risk management, and supervise all kinds ofrisks in a timely and reliable manner to control the risks within the limits.
(1) Market risks
1) Risk of exchange rate.
The operating income and capital expenditure of the Group are settled in RMB, and the fluctuation ofexchange 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 bonds payables.Due to the financial liabilities with floating interest rates, the Company faces cash flow interest rate risks,while due to financial liabilities with fixed interest rates, the Company faces fair value interest rate risks. TheGroup determined the relative proportion between fixed interest rate and floating interest rate contractsaccording to the prevailing market environment. As at 31 December 2020, the Group's interest-bearingliabilities are mainly the renminbi-denominated floating-rate borrowing contracts with a total amount of36,118,692,679.92 RMB (31 December 2019: 29,612,392,677.92 RMB) and the renminbi-denominatedfixed-rate borrowing contracts with a total amount of 13,554,670,000.00 RMB (31 December 2019:
6,653,799,999.00 RMB).The risk of changes of the Group in fair value of financial instruments due to changes in interest rates ismainly related to bank borrowings with fixed rate. The Group determines the proportion of fixed rate andfloating rate financial instruments according to the market environment and maintains an appropriatecombination 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 interest rates ismainly related to bank borrowings with floating rate. The policy of the Group is to maintain the floatinginterest rate of these borrowings to eliminate the fair value risk of interest rate changes.
(2). Credit risks.
On December 31, 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 the contract,including:
Book amount of the financial assets recognized in the consolidated balance sheet change accordingly for thefinancial instruments measured at fair value.The working capital of the Group is deposited in banks with high credit rating, so the credit risk of workingcapital is relatively low.In addition, for receivables, other receivables and notes receivable, the group has set relevant policies tocontrol credit risk exposure. The Group evaluates customers' credit qualification and sets the correspondingcredit period based on the customers' financial status, the possibility of obtaining the guarantee from a thirdparty, credit records and other factors such as current market conditions. The Group will regularly checkcustomers' credit records. For customers with poor credit records, the Group will send the written form ofletter for debt reminding, shorten or even cancel the credit period to ensure that the overall credit risks of theGroup are under control.
(3). Liquidity risk.
Liquidity risk refers to the risk that the Group is unable to fulfill its financial obligations on the maturity date.The approach of the Group of liquidity risk management is to ensure that there is sufficient liquidity to meetthe maturity liability without causing unacceptable loss or damage to the goodwill of the enterprise. TheGroup regularly analyzes the liability structure and term to ensure sufficient funds. The management level ofthe Group monitors the use of bank borrowings and ensures compliance with the loan agreement. At the sametime, the Group will negotiate with financial institution to maintain a certain credit line and reduce liquidity
risk.The financial assets and financial liabilities held by the Group are analyzed according to the maturity ofundiscounted remaining contractual obligations as follows:
Amount on December 31, 2020
| Item | Less than 1 year | 1 to 2 years | 2 to 5 years | More than 5 years | Total |
| Financial assets | |||||
| Monetary funds | 2,260,788,437.97 | 2,260,788,437.97 | |||
| Notes receivable | 80,086,113.33 | 80,086,113.33 | |||
| Receivables financing | 150,000,016.63 | 150,000,016.63 | |||
| Accounts receivable | 526,453,736.43 | 526,453,736.43 | |||
| Other receivables | 4,491,069,189.06 | 4,491,069,189.06 | |||
| Financial liability | |||||
| Short-term loans | 2,861,018,522.06 | 2,861,018,522.06 | |||
| Accounts payable | 4,667,741,873.74 | 4,667,741,873.74 | |||
| Other payables | 3,423,415,991.89 | 3,423,415,991.89 | |||
| Other non-current liabilities due within one year | 3,692,845,879.29 | 3,692,845,879.29 | |||
| Other current liabilities | 2,529,825,261.70 | 2,529,825,261.70 | |||
| Long-term Loans | 2,464,701,631.26 | 7,567,281,357.78 | 24,945,998,648.81 | 34,977,981,637.85 |
affects its interest income or expense;The fair value changes of derivative financial instruments and other financial assets and liabilities arecalculated by the discounted cash flow method at the market interest rate on the balance sheet date.On the basis of the above assumptions, the reasonable change of interest rate may have the following impacton the current profit and loss and equity under the condition that other variables remain unchanged:
| Item | Change of interest rate | 2020 | 2019 | ||
| Impact on net profit | Impact on shareholders' equity | Impact on net profit | Impact on shareholders' equity | ||
| Borrowing with floating rate | Increase by 1% | -240,676,710.74 | -240,676,710.74 | -203,040,242.75 | -203,040,242.75 |
| Borrowing with floating rate | Decrease by 1% | 240,676,710.74 | 240,676,710.74 | 203,040,242.75 | 203,040,242.75 |
| 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 | 637,481,614.78 | 637,481,614.78 | ||
| ① Financial assets measured at fair value and whose changes are included in the current profit or loss | 637,481,614.78 | 637,481,614.78 | ||
| (1) Debt instrument investment | 637,481,614.78 | 637,481,614.78 | ||
| (2) Equity instrument investment | ||||
| (3) Derivative financial assets | ||||
| 2. Financial assets that are designated to be measured at fair value and whose changes are included into the profits and losses of current period | ||||
| (1) Debt instrument investment | ||||
| (2) Equity instrument investment | ||||
| (II) Other debt investment | ||||
| (III) Other equity instrument investment | 349,241,523.36 | 349,241,523.36 | ||
| (IV) Investment real estates | ||||
| 1. Land use right for rent | ||||
| 2. Buildings for rent | ||||
| 3. Land use rights that are held and prepared to be transferred upon appreciation | ||||
| (V) Receivables financing | 150,000,016.63 | 150,000,016.63 | ||
| Total assets continuously measured at | 1,136,723,154.77 | 1,136,723,154.77 | ||
| fair value | ||||
| (VI) Trading financial liabilities | ||||
| 1. Financial liabilities measured at fair value and whose changes are included in current profits and losses | ||||
| Including: issued trading bonds | ||||
| Derivative financial liabilities | ||||
| Others | ||||
| 2. Financial liabilities designated to be measured at fair value and whose changes are included into 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 |
8. The fair value of financial assets and financial liabilities not measured at fair value
√ Applicable □ Not applicable
The financial assets and liabilities of the Group measured at amortized cost mainly include: receivables, long-term receivables, short-term loans, payables, non current liabilities due within one year, long-term loans,bonds payables and long-term payables.There is no significant difference between the book value and fair value of financial assets and liabilities notmeasured at fair value.The fair value of the bonds payable from holding to maturity investment with active market shall bedetermined by the quoted price in the active market. It shall belong to the first level. For long-term loans,long-term payables and bonds payable without active market, the fair value of the future cash flow specifiedin the contract shall be determined by the present value of the discounted interest rate with comparable creditrating in the market and providing almost the same cash flow under the same conditions. It belongs to thethird level.
9. Other
□ Applicable √ Not applicable
XII. Affiliates and affiliate transaction
1. Parent company of the enterprise
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Name of Subsidiary | Registered Place | Nature of Business | Registered capital | Shareholding ratio of parent company in the enterprise (%) | Proportion of voting rights of parent company in the enterprise (%) |
| Shandong Hi-Speed Group Co., Ltd. | Jinan | Expressway construction and management | 4,590,000 | 70.91 | 70.91 |
| Name of joint ventures and associated enterprises | Relationship with the enterprise |
| Shandong Zhonglan Railway Operation Co., Ltd. | Joint ventures |
| Shandong Hi-Speed Changying Equity Investment Management Co., Ltd. | Joint ventures |
| Shandong Environmental Protection Industry Co., Ltd | Associated enterprises |
| Jinan Puyuan Real Estate Co., Ltd. | Associated enterprises |
| Shandong Lingang Shugang Rail Transit Co., Ltd. | Associated enterprises |
| Shandong Hi-Speed New Material Technology Co., Ltd. | Associated enterprises |
| Shandong Hi-Speed Jinan Investment Co., Ltd. | Associated enterprises |
| Shandong Hi-Speed Xicheng Property Co., Ltd. | Subsidiary of associated enterprises |
| Shandong Hi-Speed Jitai Mining Investment Co., Ltd. | Associated enterprises |
| Name of other affiliates | Relations of other affiliates with the enterprise |
| High-Speed Network (Shandong) Logistics Technology Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-Speed Changtong Road and Bridge Engineering Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-speed Service Area Management Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Hi-Speed New Material Technology Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-Speed Road Development Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-Speed Heze Development Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Hi-speed Hubei Development Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Hi-Speed Construction Materials Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-speed Architectural Design Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-Speed Road & Bridge Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-Speed Qilu Construction Group Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-Speed Petrochemical Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-Speed Logistics Supply Chain Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong High-speed Logistics Group Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-Speed Property Management Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-Speed Materials Group Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Hi-Speed Xinlian Technology Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-Speed Xinlian Payment Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-Speed Xinwei Information Technology Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-Speed Information Engineering Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-speed Zhanlin Expressway Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Highway & Bridge Construction Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Provincial Communications Planning and Design Institute Group Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Road and Bridge Group Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Railway Investment Holding Group Co., Ltd. | Controling subsidiaries of the parent company |
| Weihai City Commercial Bank | Controling subsidiaries of the parent company |
| Yunnan Suomeng Expressway Co., Ltd. | Controling subsidiaries of the parent company |
| Guangdong Jiayi Engineering Co., Ltd. | Controling subsidiaries of the parent company |
| Hubei Fanwei Expressway Development Co., Ltd. | Controling subsidiaries of the parent company |
| Hubei Wuma Expressway Development Co., Ltd. | Controling subsidiaries of the parent company |
| Jining Hongxiang Highway Survey and Design Institute Co., Ltd | Controling subsidiaries of the parent company |
| Jiqing Hi-Speed Railway Co., Ltd. | Controling subsidiaries of the parent company |
| Laizhou City Beilai Highway Investment Co., Ltd. | Controling subsidiaries of the parent company |
| East Highway and Bridge Construction Corporation of Shandong | Controling subsidiaries of the parent company |
| Shandong High-Speed Aowei Junshan Automobile Supply Chain Management Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-Speed Standard Container Logistics Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Expressway Service Area Promotion Construction Engineering Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-Speed Gaoguang Highway Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-Speed Engineering Detection Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong High-speed Engineering Project Management Co. Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-Speed Light Industry Investment Fund Management Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-Speed International Tourism Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong High-Speed Hubei Maintenance Technology Co., Ltd. | Controling subsidiaries of the parent company |
| Electronic charge center of Shandong Hi-Speed Group Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Hi-Speed Construction Materials Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-Speed Construction Group Co., Ltd | Wholly owned subsidiary of the parent company |
| Shandong Hi-Speed Jiaoan Science and Technology Development Co., Ltd | Controling subsidiaries of the parent company |
| Shandong Hi-speed Technology Development Group Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Hi-Speed Linzao-Zaomu Highway Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-speed Longqing Expressway Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-speed Niluo Investment and Development Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Hi-Speed Qingdao West Coast Port Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-Speed Bioengineering Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Hi-Speed Taidong Highway Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-Speed Weiri Highway Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-speed Culture Media Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Hi-speed Xinbo Information Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-Speed Xinlian Technology Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-Speed Xinlian Payment Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Hi-Speed Xinwei Information Technology Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Hi-Speed Resource Development Management Group Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Honglin Engineering Technology Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Juanhe Expressway Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Luqiao Building Materials Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Luqiao Construction Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Provincial Traffic Engineering Supervision Consulting Co., Ltd. | Wholly owned subsidiary of the parent company |
| Shandong Luqiao Engineering Design Consulting Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Sanyi Engineering Construction Supervision Co., Ltd | Controling subsidiaries of the parent company |
| Shandong Railway Investment Holding Group Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Zhengchen Technology Co., Ltd. | Controling subsidiaries of the parent company |
| Shandong Weilai High Speed Railway Co., Ltd. | Controling subsidiaries of the parent company |
| Wuhan Jincheng Xingfa Real Estate Co., Ltd | Controling subsidiaries of the parent company |
| Shandong Hi-Speed Green Technology Development Co., Ltd. | Controling subsidiaries of the parent company |
| Longkou Port Group Co., Ltd. | Minority shareholder of the subsidiary company |
| Qingdao Pingdu Construction Investment Company | Minority shareholder of the subsidiary company |
| Rizhao Ganghui Logistics Co., Ltd | Minority shareholder of the subsidiary company |
| Zouping Communication Infrastructure Construction Investment Co., Ltd. | Minority shareholder of the subsidiary company |
| Huantai County Xinghuan Railway Investment Co. Ltd. | Minority shareholder of the subsidiary company |
| Shanghai Zhida Technology (Group) Co., Ltd. | Minority shareholder of the subsidiary company |
| Weifang Bincheng Investment Development Co., Ltd. | Minority shareholder of the subsidiary company |
| China Overseas Development (Shandong) Co., Ltd. | Minority shareholder of the subsidiary company |
| Shanghai Zhida Technology (Group) Co., Ltd. | Parent company of minority shareholders of the subsidiary |
Unit: yuan Currency: CNY
| Related party | Content of connected transactions | Amount incurred in current period | Amount incurred in previous period |
| Shandong Hi-Speed Qingdao West Coast Port Co., Ltd. | Purchase of vehicles | 10,462,696.08 | 4,243,000.00 |
| Shandong High-Speed Aowei Junshan Automobile Supply Chain Management Co., Ltd. | Purchase of goods | 1,003,715.84 | |
| Shandong Hi-Speed Engineering Detection Co., Ltd. | Purchase of goods | 309,608.49 | 482,207.55 |
| Shandong Hi-Speed International Tourism Co., Ltd. | Purchase of goods | 115,569.00 | |
| Shandong Hi-Speed New Material Technology Co., Ltd. | Purchase of goods | 23,657,719.47 | |
| Shandong Hi-Speed Information Engineering Co., Ltd. | Purchase of goods | 4,873,166.00 | 62,795.46 |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Purchase of goods | 2,209,051.71 | |
| Shandong Hi-speed Architectural Design Co., Ltd. | Project funds | 1,231,200.00 | |
| Shandong Hi-Speed Qilu Construction Group Co., Ltd. | Project funds | 54,664,439.50 | 152,805,531.55 |
| Shandong Hi-Speed New Material Technology Co., Ltd. | Project funds | 3,702,901.39 | |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Project funds | 44,677,394.11 | 29,429,872.10 |
| Shandong Highway & Bridge Construction Co., Ltd. | Project funds | 730,688,588.53 | 1,237,567,217.68 |
| Shandong Provincial Traffic Engineering Supervision Consulting Co., Ltd. | Project funds | 4,171,702.13 | |
| Shandong Provincial Communications Planning and Design Institute Group Co., Ltd. | Project funds | 28,347,565.00 | |
| Shandong Luqiao Group Co., Ltd. | Project funds | 1,191,699,478.20 | 2,988,170,472.95 |
| Shandong Sanyi Engineering Construction Supervision Co., Ltd | Project funds | 2,965,107.36 | |
| China Overseas Development (Shandong) Co., Ltd. | Project funds | 7,889,908.26 | |
| Shandong Hi-Speed Information Engineering Co., Ltd. | Project funds | 281,774,272.80 | |
| Shandong High-speed Engineering Project Management Co. Ltd. | Advisory fee | 22,647,696.05 | 25,941,785.48 |
| Shandong Hi-speed Architectural Design Co., Ltd. | Advisory fee | 1,231,200.00 | 8,494,580.00 |
| Shandong Luqiao Engineering Design Consulting Co., Ltd. | Advisory fee | 348,476.00 | |
| Shandong Hi-Speed Road Development Co., Ltd. | Advertising expense | 1,868,505.72 |
| Shandong Hi-Speed Group Co., Ltd. | Advertising expense | 2,196,955.02 | |
| Shandong Hi-Speed Engineering Detection Co., Ltd. | Reconstruction and general maintenance of road products and auxiliary facilities | 9,213,459.50 | 13,098,531.17 |
| Shandong High-speed Engineering Project Management Co. Ltd. | Reconstruction and general maintenance of road products and auxiliary facilities | 2,889,539.64 | 16,146,395.88 |
| Shandong Hi-Speed Information Engineering Co., Ltd. | Reconstruction and general maintenance of road products and auxiliary facilities | 3,674,270.00 | 13,140,991.23 |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Reconstruction and general maintenance of road products and auxiliary facilities | 139,714,867.96 | 205,503,852.39 |
| Shandong Luqiao Engineering Design Consulting Co., Ltd. | Reconstruction and general maintenance of road products and auxiliary facilities | 68,700.00 | |
| Shandong Luqiao Group Co., Ltd. | Reconstruction and general maintenance of road products and auxiliary facilities | 158,016,430.46 | 243,196,240.16 |
| Shandong Hi-Speed Road & Bridge Co., Ltd. | Reconstruction and general maintenance of road products and auxiliary facilities | 19,731,099.07 | |
| Guangdong Jiayi Engineering Co., Ltd. | Information engineering transformation and maintenance | 146,541,209.60 | |
| Shandong High-speed Engineering Project Management Co. Ltd. | Information engineering transformation and maintenance | 900,480.00 | |
| Shandong Hi-Speed Information Engineering Co., Ltd. | Information engineering transformation and maintenance | 47,098,609.53 | 2,589,106.61 |
| Shandong Luqiao Group Co., Ltd. | Information engineering transformation and maintenance | 819,000.00 | |
| Shandong Hi-Speed Xinlian Payment Co., Ltd. | Information engineering transformation and maintenance | 28,468,129.89 | |
| Shandong Hi-Speed Xinlian Technology Co., Ltd. | Information engineering transformation and maintenance | 32,468,786.99 | |
| Shandong Hi-Speed Changying Equity Investment Management Co., Ltd. | Integrated Service | 10,318,900.00 | 15,082,600.00 |
| Wuhan Jincheng Xingfa Real Estate Co., Ltd | Integrated Service | 363,344.40 | 1,323,300.86 |
| Shandong Hi-Speed Group Co., Ltd. | Collection of ETC advance deposit | 11,616,250.18 | |
| Total | 2,673,991,837.46 | 5,334,665,356.55 |
| Related party | Content of connected transactions | Amount incurred in current period | Amount incurred in previous period |
| Shandong Hi-Speed New Material Technology Co., Ltd. | Project funds | 2,031,324.12 | |
| Shandong Luqiao Group Co., Ltd. | Project funds | 88,932,511.00 | |
| Shandong Zhengchen Technology Co., Ltd. | Project funds | 183,486.24 | |
| Jinan Puyuan Real Estate Co., Ltd. | Interest income | 72,120,272.23 | 99,131,522.65 |
| East Highway and Bridge Construction Corporation of Shandong | Sale of goods | 4,336,895.74 | |
| Shandong Hi-Speed Qilu Construction Group Co., Ltd. | Sale of goods | 8,206,141.67 | |
| Shandong Hi-Speed Bioengineering Co., Ltd. | Sale of goods | 292,769.75 | |
| Shandong Hi-Speed Materials Group Co., Ltd. | Sale of goods | 37,404,955.75 | 30,000,000.00 |
| Shandong Hi-Speed New Material Technology Co., Ltd. | Sale of goods | 161,291,912.22 | |
| Shandong Hi-Speed Information Engineering Co., Ltd. | Sale of goods | 4,708,185.84 | |
| Shandong Luqiao Building Materials Co., Ltd. | Sale of goods | 111,988.00 | |
| Shandong Luqiao Construction Co., Ltd. | Sale of goods | 1,998,251.32 | |
| Shandong Highway & Bridge Construction Co., Ltd. | Sale of goods | 19,105,864.80 | |
| Shandong Luqiao Group Co., Ltd. | Sale of goods | 265,508,157.83 | 186,489,035.15 |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Sale of goods | 25,358,320.70 | |
| Shandong Weilai High Speed Railway Co., Ltd. | Sale of goods | 19,645,908.00 | |
| Rizhao Ganghui Logistics Co., Ltd | Provide transportation services | 389,920.93 | 2,478,178.82 |
| Shandong Hi-Speed New Material Technology Co., Ltd. | Provide transportation services | 3,207,193.39 | |
| Weifang Bincheng Investment Development Co., Ltd. | Comprehensive service fee | 82,641.48 | 593,366.02 |
| Shandong Hi-Speed Information Engineering Co., Ltd. | Provide integrated services | 1,258,634.92 | |
| Shandong Highway & Bridge Construction Co., Ltd. | Provide integrated services | 93,324.00 | |
| Shandong Hi-speed Communication Technology Co., Ltd. | Provide integrated services | 4,680.27 | |
| Shandong Luqiao Group Co., Ltd. | Provide integrated | 4,950,776.38 | 158,523.75 |
| services | |||
| Shandong Hi-Speed New Material Technology Co., Ltd. | Provide integrated services | 2,521,805.85 | |
| Jining Hongxiang Highway Survey and Design Institute Co., Ltd | Sales of goods and comprehensive services | 693,292.44 | 697,066.01 |
| Shandong Hi-Speed Changying Equity Investment Management Co., Ltd. | Sales of goods and comprehensive services | 407,185.36 | |
| Shandong Hi-Speed New Material Technology Co., Ltd. | Sales of goods and comprehensive services | 2,521,805.85 | |
| Shandong Hi-Speed Jitai Mining Investment Co., Ltd. | Sales of goods and comprehensive services | 62,355.19 | 58,051.37 |
| Shandong Hi-speed Architectural Design Co., Ltd. | Sales of goods and comprehensive services | 796,321.98 | 732,910.12 |
| Shandong Hi-Speed Jiaoan Science and Technology Development Co., Ltd | Sales of goods and comprehensive services | 604.62 | 29,437.09 |
| Shandong Hi-Speed Green Technology Development Co., Ltd. | Sales of goods and comprehensive services | 176,465.92 | 95,750.34 |
| Shandong Hi-speed Niluo Investment and Development Co., Ltd. | Sales of goods and comprehensive services | 401,278.77 | 239,751.09 |
| Shandong Hi-Speed Petrochemical Co., Ltd. | Sales of goods and comprehensive services | 642,413.13 | 607,841.37 |
| Shandong Hi-Speed Xinlian Technology Co., Ltd. | Sales of goods and comprehensive services | 104,667.85 | |
| Shandong Honglin Engineering Technology Co., Ltd. | Sales of goods and comprehensive services | 110,126.04 | 72,625.38 |
| Shandong Hi-Speed Xinlian Payment Co., Ltd. | Sales of goods and comprehensive services | 6,955.57 | |
| Jiqing Hi-Speed Railway Co., Ltd. | Sales of goods and comprehensive services | 12,184.43 | |
| Shandong Expressway Service Area Promotion Construction Engineering Co., Ltd. | Sales of goods and comprehensive services | 298,753.75 | |
| Shandong Hi-Speed Group Co., Ltd. | Sales of goods and comprehensive services | 61,570.24 | |
| Shandong Hi-Speed Construction Group Co., Ltd | Sales of goods and comprehensive services | 41,450.95 | |
| Shandong Hi-speed Technology Development Group Co., Ltd. | Sales of goods and comprehensive services | 136,736.84 | |
| Shandong Hi-speed Xinbo Information Co., Ltd. | Sales of goods and comprehensive services | 614,285.72 | |
| Shandong Hi-Speed Resource Development Management Group Co., Ltd. | Sales of goods and comprehensive services | 13,904.72 | |
| Total | 704,304,118.88 | 347,928,222.08 |
Unit: yuan Currency: CNY
| 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 High-speed Co., Ltd | Custody of other assets | January 1, 2018 (Note 1) | December 31, 2020 | Agreement | 218,646,698.11 |
| Shandong Hi-Speed Road Development Co., Ltd. | Shandong High-speed Co., Ltd | Custody of other assets | January 1, 2018 (Note 1) | December 31, 2020 | Agreement | 104,616,981.13 |
| Shandong Hi-Speed Weiri Highway Co., Ltd. | Shandong High-speed Co., Ltd | Custody of other assets | January 1, 2018 | December 31, 2020 | Agreement | 108,039,056.60 |
| Shandong Hi-speed Longqing Expressway Co., Ltd. | Shandong High-speed Co., Ltd | Custody of other assets | January 1, 2018 | December 31, 2020 | Agreement | 42,025,566.04 |
| Shandong Hi-Speed Gaoguang Highway Co., Ltd. | Shandong High-speed Co., Ltd | Custody of other assets | November 30, 2019 | December 31, 2020 | Agreement | 25,635,754.72 |
| Shandong Hi-Speed Linzao-Zaomu Highway Co., Ltd. | Shandong High-speed Co., Ltd | Custody of other assets | November 30, 2019 | December 31, 2020 | Agreement | 7,337,264.15 |
| Shandong Hi-Speed Taidong Highway Co., Ltd. | Shandong High-speed Co., Ltd | Custody of other assets | July 1, 2019 | December 31, 2020 | Agreement | 58,336,509.43 |
| Shandong Juanhe Expressway Co., Ltd. | Shandong High-speed Co., Ltd | Custody of other assets | January 1, 2019 | December 31, 2020 | Agreement | 40,754,749.83 |
| Name of lessee | Types of leased assets | Rental income recognized in the current period | Rental income recognized in the previous period |
| Shandong Hi-speed Culture Media Co., Ltd. | Right to use advertising space | 460,952.38 | |
| Rizhao Ganghui Logistics Co., Ltd | Pinglan railway freight yard and mechanical equipment | 3,813,756.90 | 4,077,669.88 |
| Shandong Luqiao Group Co., Ltd. | Qixing Building | 1,348,892.44 | |
| Shandong High-speed Logistics Group Co., Ltd. | Toll plaza | 219,723.81 | |
| Shandong Environmental Protection Industry Co., Ltd | Qixing Building | 269,796.02 | 720,393.50 |
| Shandong Hi-Speed Green Technology Development Co., Ltd. | Qixing Building | 475,873.09 | 76,806.67 |
| Shandong Hi-Speed Information Engineering Co., Ltd. | Pore | 1,258,634.92 | 1,277,206.32 |
| Shandong Hi-speed Communication Technology Co., Ltd. | Pore | 589,714.29 | |
| Shandong Hi-Speed Petrochemical Co., Ltd. | Housing | 9,735,428.24 | 7,619,047.36 |
| Shandong Hi-Speed Jitai Mining Investment Co., Ltd. | Housing | 293,629.46 | |
| Shandong Hi-speed Architectural Design Co., Ltd. | Housing | 1,564,061.68 | 1,564,061.64 |
| Jining Hongxiang Highway Survey and Design Institute Co., Ltd | Housing | 1,789,275.32 | 1,789,274.28 |
| Shandong Hi-Speed Petrochemical Co., Ltd. | Housing | 1,593,981.94 | 1,593,981.96 |
| Shandong Hi-speed Niluo Investment and Development Co., Ltd. | Housing | 1,172,371.49 | 711,444.60 |
| Shandong Hi-Speed Xinlian Technology Co., Ltd. | Housing | 496,948.86 | |
| Shandong Hi-Speed New Material Technology Co., Ltd. | Housing | 634,316.02 | |
| Shandong Hi-Speed Changying Equity Investment Management Co., Ltd. | Housing | 1,171,044.98 | |
| Hubei Fanwei Expressway Development Co., Ltd. | Vehicle | 48,571.42 | |
| Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | Maintenance machinery and equipment | 353,982.30 | |
| Shandong Hi-speed Service Area Management Co., Ltd. | Management and leasing of Guodian parking area in Xuyu road | 476,190.48 | |
| Jiqing Hi-Speed Railway Co., Ltd. | Office building in Olympic Middle Road | 96,788.83 | |
| Shandong Hi-Speed Jiaoan Science and Technology Development Co., Ltd | Office building in Olympic Middle Road | 157,483.36 | |
| Shandong High-Speed Hubei Maintenance Technology Co., Ltd. | Maintenance of science and technology sites | 110,091.74 | 110,091.74 |
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Name of lessor | Types of leased assets | Rental fee recognized of this period | Rental fee recognized of previous period |
| Wuhan Jincheng Xingfa Real Estate Co., Ltd | Boshihui office building | 2,488,972.50 | 1,244,993.01 |
| Shandong Hi-speed Investment Holding Co., Ltd. | Office building of Shandong Hi-speed Group Co., Ltd | 302,220.00 | 423,655.50 |
| Shandong Hi-speed Service Area Management Co., Ltd. | Office building along Jiqing Expressway | 583,399.84 | |
| Shandong Hi-speed Service Area Management Co., Ltd. | Public facilities | 2,217,024.44 |
| Guarantor | Guarantee Amount | Starting Date of Guarantee | Due Date of Guarantee | Whether the Guarantee Has Been Fulfilled or Not |
| Shandong Hi-Speed Group Co., Ltd. | 500,000,000.00 | 11/29/2019 | 11/29/2039 | No |
| Shandong Hi-Speed Group Co., Ltd. | 20,000,000.00 | 9/29/2020 | 10/29/2050 | No |
| Shandong Hi-Speed Group Co., Ltd. | 12,000,000.00 | 9/29/2020 | 9/29/2050 | No |
| Shandong Hi-Speed Group Co., Ltd. | 8,000,000.00 | 10/9/2020 | 10/9/2050 | No |
| Shandong Hi-Speed Group Co., Ltd. | 225,340,000.00 | 1/11/2016 | 12/20/2032 | No |
| Shandong Hi-Speed Group Co., Ltd. | 202,180,000.00 | 1/20/2016 | 12/20/2032 | No |
| Shandong Hi-Speed Group Co., Ltd. | 163,680,000.00 | 2/3/2016 | 12/20/2032 | No |
| Shandong Hi-Speed Group Co., Ltd. | 1,053,800,000.00 | 3/11/2016 | 12/20/2032 | No |
| Shandong Hi-Speed Group Co., Ltd. | 167,240,000.00 | 8/30/2016 | 12/20/2032 | No |
| Shandong Hi-Speed Group Co., Ltd. | 250,880,000.00 | 10/31/2016 | 12/20/2032 | No |
| Shandong Hi-Speed Group Co., Ltd. | 935,680,000.00 | 12/19/2016 | 12/20/2032 | No |
| Shandong Hi-Speed Group Co., Ltd. | 653,800,000.00 | 1/20/2017 | 12/20/2032 | No |
| Shandong Hi-Speed Group Co., Ltd. | 76,950,000.00 | 2/9/2017 | 12/20/2032 | No |
| Shandong Hi-Speed Group Co., Ltd. | 153,900,000.00 | 2/27/2017 | 12/20/2032 | No |
| Shandong Hi-Speed Group Co., Ltd. | 76,950,000.00 | 4/12/2017 | 12/20/2032 | No |
| Shandong Hi-Speed Group Co., Ltd. | 76,950,000.00 | 4/12/2017 | 12/20/2032 | No |
| Shandong Hi-Speed Group Co., Ltd. | 76,950,000.00 | 4/14/2017 | 12/20/2032 | No |
| Shandong Hi-Speed Group Co., Ltd. | 77,000,000.00 | 4/12/2017 | 12/20/2032 | No |
| Shandong Hi-Speed Group Co., Ltd. | 77,000,000.00 | 4/14/2017 | 12/20/2032 | No |
| Shandong Hi-Speed Group Co., Ltd. | 152,000,000.00 | 4/14/2017 | 12/20/2032 | No |
| Shandong Hi-Speed Group Co., Ltd. | 220,000,000.00 | 11/30/2016 | 12/20/2032 | No |
| Related party | Content of connected transactions | Amount incurred in current period | Amount incurred in previous period |
| Shandong Hi-Speed Materials Group Co., Ltd. | Property transaction | 35,000,000.00 | |
| Shandong Hi-Speed Group Co., Ltd. | Property transaction | 3,487,254,636.00 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Remuneration of key management personnel | 1090.62 | 871.66 |
| Name of related party | Transaction type | Amounts incurred of current year | Amount incurred in last year |
| Weihai City Commercial Bank | Deposit interest income | 8,908,716.12 | 11,777,523.64 |
| Weihai City Commercial Bank | Loan interest expense | 127,945,408.00 | 183,814,702.70 |
| Project Name | Related party | Ending balance | Beginning balance | ||
| Book balance | Bad debt reserves | Book balance | Bad debt reserves | ||
| Current account deposit | Weihai City Commercial Bank | 324,239,293.69 | 858,700,147.99 | ||
| Other receivables | High-Speed Network (Shandong) Logistics Technology Co., Ltd. | 14,339.00 | |||
| Other receivables | Huantai County Xinghuan Railway Investment Co. Ltd. | 70,000,000.00 | 18,884,200.00 | ||
| Other receivables | Jinan Puyuan Real Estate Co., Ltd. | 452,732,622.93 | 1,107,671,674.63 | ||
| Other receivables | Qingdao Pingdu Construction Investment Company | 50,000.00 | 50,000.00 | ||
| Other receivables | Shandong Hi-Speed Standard Container Logistics Co., Ltd. | 21,539.00 | 14,101.00 | ||
| Other receivables | Shandong Hi-Speed Changtong Road and Bridge Engineering Co., Ltd. | 20,000.00 | |||
| Other receivables | Shandong Hi-speed Service Area Management Co., Ltd. | 333,951.69 | 339,850.33 | ||
| Other receivables | Shandong Hi-Speed New Material Technology Co., Ltd. | 13,476.27 | |||
| Other receivables | Shandong Hi-Speed Road Development Co., Ltd. | 4,638,404.08 | |||
| Other receivables | Shandong Hi-Speed Light Industry Investment Fund Management Co., Ltd. | 49,221.90 | 237,284.48 | ||
| Other receivables | Shandong Hi-Speed Heze Development Co., Ltd. | 5,001.61 | |||
| Other receivables | Shandong Hi-speed Hubei Development Co., Ltd. | 348,646.09 | 144,347.36 | ||
| Other receivables | Shandong Hi-Speed Group Co., Ltd. | 1,955,791.13 | 41,776,835.24 | ||
| Other receivables | Shandong Hi-Speed Petrochemical Co., Ltd. | 32,137.00 | 70,758.10 | ||
| Other receivables | Shandong High-speed Logistics Group Co., Ltd. | 4,605.00 | 3,107.00 | ||
| Other receivables | Shandong Hi-Speed Property Management Co., Ltd. | 5,000.00 | 4,950.00 | ||
| Other receivables | Shandong Hi-Speed Xicheng Property Co., Ltd. | 2,680,123,634.69 | 2,690,123,634.69 | ||
| Other receivables | Shandong Hi-Speed New Material Technology Co., Ltd. | 34,885.02 | |||
| Other receivables | Shandong Hi-Speed Xinlian Payment Co., Ltd. | 7,831,217.04 | 6,676.02 | ||
| Other receivables | Shandong Hi-speed Service Area Management Co., Ltd. | 11,269,340.24 | |||
| Other receivables | Shandong Hi-speed Zhanlin Expressway Co., Ltd. | 1,500,000.00 | |||
| Other receivables | Shandong Lingang Shugang Rail Transit Co., Ltd. | 5,197,219.00 | |||
| Other receivables | Shandong Luqiao Construction Co., Ltd. | 1,757,654.88 | 200,000.00 | ||
| Other receivables | Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | 210,433.37 | 3,866,463.41 | ||
| Other receivables | Shandong Highway & Bridge Construction Co., Ltd. | 6,269,048.12 | |||
| Other receivables | Shandong Environmental Protection Industry Co., Ltd | 269,796.02 | |||
| Other receivables | Shandong Provincial Communications Planning and Design Institute Group Co., Ltd. | 2,000.00 | 2,000.00 | ||
| Other receivables | Shandong Luqiao Group Co., Ltd. | 11,140,681.70 | 1,747,525.50 | ||
| Other receivables | Shandong Railway Investment Holding Group Co., Ltd. | 43,651,366.06 | |||
| Other receivables | Yunnan Suomeng Expressway Co., Ltd. | 100,721.00 | 100,721.00 | ||
| Other receivables | Zouping Communication Infrastructure Construction Investment Co., Ltd. | 44,000,000.00 | 11,870,000.00 | ||
| Other receivables | Shanghai Zhida Technology (Group) Co., Ltd. | 18,410,029.32 | 56,581,703.19 | ||
| Other receivables | Shandong Juanhe Expressway Co., Ltd. | 10,034,275.00 | |||
| Other receivables | Shandong Hi-speed Architectural Design Co., Ltd. | 69,112.22 | |||
| Other receivables | Laizhou City Beilai Highway Investment Co., Ltd. | 1,201.83 | |||
| Notes receivable | Shandong Hi-Speed Construction Materials Co., Ltd. | 4,000,000.00 | |||
| Notes receivable | Shandong Hi-speed Architectural Design Co., Ltd. | 200,000.00 | |||
| Notes receivable | Shandong Hi-Speed Qilu Construction Group Co., Ltd. | 3,698,920.00 |
| Notes receivable | Shandong Lingang Shugang Rail Transit Co., Ltd. | 2,500,000.00 | |||
| Notes receivable | Shandong Luqiao Construction Co., Ltd. | 5,000,000.00 | |||
| Notes receivable | Shandong Highway & Bridge Construction Co., Ltd. | 2,500,000.00 | |||
| Notes receivable | Shandong Hi-Speed Group Co., Ltd. | 3,000,000.00 | |||
| Notes receivable | Shandong Luqiao Group Co., Ltd. | 9,500,000.00 | 56,614,808.00 | ||
| Accounts receivable | Shandong Hi-Speed Qilu Construction Group Co., Ltd. | 4,927,266.59 | |||
| Accounts receivable | Shandong Hi-Speed Materials Group Co., Ltd. | 33,184,800.00 | |||
| Accounts receivable | Shandong Hi-Speed New Material Technology Co., Ltd. | 135,263,799.69 | |||
| Accounts receivable | Shandong Hi-Speed Xinlian Technology Co., Ltd. | 288,289.42 | |||
| Accounts receivable | Shandong Hi-Speed Xinwei Information Technology Co., Ltd. | 178,500.00 | 178,500.00 | ||
| Accounts receivable | Shandong Hi-Speed Information Engineering Co., Ltd. | 527,625.00 | |||
| Accounts receivable | Shandong Luqiao Construction Co., Ltd. | 1,793,689.67 | |||
| Accounts receivable | Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | 20,047.50 | 20,047.50 | ||
| Accounts receivable | Shandong Highway & Bridge Construction Co., Ltd. | 4,182,932.35 | |||
| Accounts receivable | Shandong Luqiao Group Co., Ltd. | 227,054,735.82 | 4,515,261.32 | ||
| Accounts receivable | Shandong Hi-speed Communication Technology Co., Ltd. | 619,200.00 | 614,285.72 | ||
| Accounts receivable | Shandong Hi-speed Architectural Design Co., Ltd. | 1,738,165.01 | |||
| Accounts receivable | Shandong Hi-speed Niluo Investment and Development Co., Ltd. | 52,719.81 | |||
| Prepayment | Shandong Hi-Speed Group Co., Ltd. | 14,426.64 | 16,000.00 | ||
| Prepayment | Shandong Hi-Speed Logistics Supply Chain Co., Ltd. | 1,000,013.90 | |||
| Prepayment | Shandong Hi-Speed Property Management Co., Ltd. | 32,220.00 | |||
| Prepayment | Shandong Hi-Speed Xinlian Technology Co., Ltd. | 57,356.04 | |||
| Prepayment | Shandong Hi-Speed Xinlian Payment Co., Ltd. | 9,026.38 | 7,330.00 |
| Prepayment | Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | 273,911.87 | 38,561,178.08 | ||
| Prepayment | Shandong Luqiao Group Co., Ltd. | 197,244,382.70 | 482,031,794.26 | ||
| Prepayment | Shandong Expressway Service Area Promotion Construction Engineering Co., Ltd. | 71,878,367.59 | 71,705,508.73 | ||
| Prepayment | Shandong Hi-Speed Qilu Construction Group Co., Ltd. | 10,633,941.78 | 17,516,586.79 | ||
| Prepayment | Shandong Highway & Bridge Construction Co., Ltd. | 330,104,673.96 | 264,455,844.86 | ||
| Prepayment | Shandong Hi-Speed Information Engineering Co., Ltd. | 1,938,725.47 | 8,731,286.93 |
| Project Name | Related party | Ending book balance | Beginning book balance |
| Deferred Income | Weifang Bincheng Investment Development Co., Ltd. | 2,375,943.44 | 2,458,584.92 |
| Contract liabilities | Rizhao Ganghui Logistics Co., Ltd | 2,011.23 | 219,765.40 |
| Contract liabilities | Shandong Hi-Speed Changying Equity Investment Management Co., Ltd. | 67,442.45 | |
| Contract liabilities | Shandong Hi-Speed New Material Technology Co., Ltd. | 138,894.79 | |
| Contract liabilities | Shandong High-speed Engineering Project Management Co. Ltd. | 849.06 | 849.06 |
| Contract liabilities | Shandong Hi-Speed Jitai Mining Investment Co., Ltd. | 117,301.38 | 80,424.02 |
| Contract liabilities | Shandong Hi-speed Architectural Design Co., Ltd. | 163,069.01 | |
| Contract liabilities | Shandong Hi-speed Technology Development Group Co., Ltd. | 943.4 | 943.4 |
| Contract liabilities | Shandong Hi-Speed Road & Bridge Co., Ltd. | 655,226.92 | |
| Contract liabilities | Shandong Hi-Speed Green Technology Development Co., Ltd. | 93,668.63 | |
| Contract liabilities | Shandong Hi-speed Niluo Investment and Development Co., Ltd. | 248,619.55 | |
| Contract liabilities | Shandong Hi-Speed Petrochemical Co., Ltd. | 159,162.09 | 147,304.89 |
| Contract liabilities | Shandong Hi-Speed Xinlian Technology Co., Ltd. | 169,981.98 | |
| Contract liabilities | Shandong Luqiao Group Co., Ltd. | 60,598.52 | |
| Contract liabilities | Shandong Hi-Speed Xinlian Payment Co., Ltd. | 4,644.25 | |
| Other payables | Guangdong Jiayi Engineering Co., Ltd. | 25,580,979.37 | |
| Other payables | Longkou Port Group Co., Ltd. | 24,621,590.40 | 24,621,590.40 |
| Other payables | Rizhao Ganghui Logistics Co., Ltd | 7,723,319.95 | 7,723,319.95 |
| Other payables | Shandong Hi-Speed Standard Container Logistics Co., Ltd. | 6,000.00 | 6,000.00 |
| Other payables | Shandong Hi-Speed Changying Equity Investment | 18,396,292.91 | 16,051,492.91 |
| Management Co., Ltd. | |||
| Other payables | Shandong Hi-speed Service Area Management Co., Ltd. | 2,863,768.98 | 2,863,768.98 |
| Other payables | Shandong Hi-Speed Gaoguang Highway Co., Ltd. | 1,000,558.03 | 737,932.00 |
| Other payables | Shandong Hi-Speed Engineering Detection Co., Ltd. | 1,011,603.49 | 692,479.62 |
| Other payables | Shandong High-speed Engineering Project Management Co. Ltd. | 2,671,589.39 | 1,486,122.03 |
| Other payables | Shandong Hi-Speed Road Development Co., Ltd. | 28,481,284.61 | 17,516,432.87 |
| Other payables | Shandong Hi-Speed International Tourism Co., Ltd. | 33,350.00 | 33,350.00 |
| Other payables | Shandong Hi-Speed Jitai Mining Investment Co., Ltd. | 5,074.53 | 5,074.53 |
| Other payables | Electronic charge center of Shandong Hi-Speed Group Co., Ltd. | 65,000.00 | 76,710.00 |
| Other payables | Shandong Hi-Speed Group Co., Ltd. | 330,708,724.58 | 327,479,612.83 |
| Other payables | Shandong Hi-Speed Construction Materials Co., Ltd. | 4,000,000.00 | |
| Other payables | Shandong Hi-Speed Linzao-Zaomu Highway Co., Ltd. | 276,610.00 | 215,466.00 |
| Other payables | Shandong Hi-speed Longqing Expressway Co., Ltd. | 1,364,564.56 | 626,682.81 |
| Other payables | Shandong Hi-Speed Green Technology Development Co., Ltd. | 120,445.36 | |
| Other payables | Shandong Hi-Speed Qilu Construction Group Co., Ltd. | 4,105,030.63 | 2,776,110.63 |
| 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. | 6,702,427.16 | 3,451,178.17 |
| Other payables | Shandong Hi-Speed Weiri Highway Co., Ltd. | 11,295,735.37 | 6,296,802.10 |
| Other payables | Shandong Hi-speed Culture Media Co., Ltd. | 100,000.00 | 100,000.00 |
| Other payables | Shandong Hi-Speed Property Management Co., Ltd. | 1,816.32 | 1,816.32 |
| Other payables | Shandong Hi-Speed Information Engineering Co., Ltd. | 24,536,345.66 | 21,015,678.09 |
| Other payables | Shandong Juanhe Expressway Co., Ltd. | 5,338,647.05 | 2,036,193.00 |
| Other payables | Shandong Lingang Shugang Rail Transit Co., Ltd. | 312,474,560.25 | |
| Other payables | Shandong Luqiao Construction Co., Ltd. | 210,000.00 | 210,000.00 |
| Other payables | Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | 41,192,036.42 | 69,149,425.90 |
| Other payables | Shandong Highway & Bridge Construction Co., Ltd. | 5,703,967.60 | 1,812,815.21 |
| Other payables | Shandong Luqiao Group Co., Ltd. | 97,763,031.19 | 42,416,822.08 |
| Other payables | Shandong Railway Investment Holding Group Co., Ltd. | 1,516,348,633.94 | 960,000,000.00 |
| Other payables | Weifang Bincheng Investment Development Co., Ltd. | 100,000.00 | |
| Other payables | Shandong Zhonglan Railway Operation Co., Ltd. | 82,212,798.72 | |
| Other payables | Shandong Sanyi Engineering Construction Supervision Co., Ltd | 188,000.00 | |
| Other payables | Shanghai Zhida Technology (Group) Co., Ltd. | 31,500,000.00 | 31,500,000.00 |
| Other payables | Shandong Hi-Speed Xinlian Payment Co., Ltd. | 14,632,626.24 | |
| Other payables | Shandong Environmental Protection Industry Co., Ltd | 22,000.00 |
| 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 Honglin Engineering Technology Co., Ltd. | 5,000.00 | |
| Other payables | China Railway High Speed Logistics (Shandong) Co., Ltd. | 10,000.00 | |
| Other payables | Shandong Hi-Speed Jinan Investment Co., Ltd. | 51,592,623.31 | 51,592,623.31 |
| Other payables | Shandong Hi-Speed Xicheng Property Co., Ltd. | 131,594,717.16 | 131,594,717.16 |
| Other payables | Jinan Puyuan Real Estate Co., Ltd. | 1,834,780.48 | |
| Dividends payable | Shandong Hi-Speed Group Co., Ltd. | 10,821,084.94 | |
| Accounts payable | Guangdong Jiayi Engineering Co., Ltd. | 57,679,944.27 | |
| Accounts payable | Qingdao Pingdu Construction Investment Company | 4,016,568.00 | 4,016,568.00 |
| Accounts payable | Shandong High-Speed Aowei Junshan Automobile Supply Chain Management Co., Ltd. | 31,710.00 | 31,710.00 |
| Accounts payable | Shandong Hi-speed Service Area Management Co., Ltd. | 97,581.93 | 97,581.93 |
| Accounts payable | Shandong Hi-Speed Engineering Detection Co., Ltd. | 2,252,629.03 | 2,580,381.04 |
| Accounts payable | Shandong High-speed Engineering Project Management Co. Ltd. | 10,250,176.63 | 24,138,502.27 |
| Accounts payable | Shandong Hi-Speed Road Development Co., Ltd. | 1,956,579.11 | 88,073.39 |
| Accounts payable | Shandong Hi-Speed Group Co., Ltd. | 2,317,000.89 | 120,045.87 |
| Accounts payable | Shandong Hi-Speed Construction Materials Co., Ltd. | 2,000,000.00 | |
| Accounts payable | Shandong Hi-speed Architectural Design Co., Ltd. | 14,000.00 | |
| Accounts payable | Shandong Hi-Speed Road & Bridge Co., Ltd. | 526,847.89 | 3,233,880.92 |
| Accounts payable | Shandong Hi-Speed Green Technology Development Co., Ltd. | 7,052.58 | 7,052.58 |
| Accounts payable | Shandong Hi-Speed Qilu Construction Group Co., Ltd. | 10,415,593.85 | |
| Accounts payable | Shandong Hi-Speed Qingdao West Coast Port Co., Ltd. | 9,013,592.55 | 106,435.00 |
| Accounts payable | Shandong Hi-Speed Petrochemical Co., Ltd. | 65,969.01 | 65,969.01 |
| Accounts payable | Shandong Hi-Speed Materials Group Co., Ltd. | 1,100,000.00 | |
| Accounts payable | Shandong Hi-Speed New Material Technology Co., Ltd. | 15,263,205.49 | |
| Accounts payable | Shandong Hi-Speed Information Engineering Co., Ltd. | 76,113,338.92 | 57,974,516.98 |
| Accounts payable | Shandong Luqiao Construction Co., Ltd. | 353,871.42 | 353,871.42 |
| Accounts payable | Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd. | 77,412,442.72 | 107,411,421.36 |
| Accounts payable | Shandong Highway & Bridge Construction Co., Ltd. | 522,285,520.73 | 66,899,711.07 |
| Accounts payable | Shandong Provincial Traffic Engineering Supervision Consulting Co., Ltd. | 1,231,644.84 | |
| Accounts payable | Shandong Luqiao Engineering Design Consulting Co., Ltd. | 348,476.00 | |
| Accounts payable | Shandong Luqiao Group Co., Ltd. | 1,000,004,324.88 | 501,875,446.54 |
| Accounts payable | Shandong Sanyi Engineering Construction Supervision Co., Ltd | 219,850.05 | |
| Accounts payable | China Overseas Development (Shandong) Co., Ltd. | 352,150.28 | |
| Accounts payable | Shandong Provincial Communications Planning and Design Institute Group Co., Ltd. | 2,499,000.00 | |
| Deposit received | Jining Hongxiang Highway Survey and Design Institute Co., Ltd | 149,105.24 | 146,337.84 |
| Deposit received | Shandong Hi-Speed New Material Technology Co., Ltd. | 536,728.92 | |
| Deposit received | Shandong Hi-speed Architectural Design Co., Ltd. | 130,338.54 | 142,899.49 |
| Deposit received | Shandong Hi-speed Niluo Investment and Development Co., Ltd. | 1,058,146.37 | 37,013.85 |
| Deposit received | Shandong Hi-Speed Xinlian Technology Co., Ltd. | 871,401.04 | |
| Deposit received | Shandong Hi-Speed Information Engineering Co., Ltd. | 7,964,317.51 | 9,222,952.43 |
| Deposit received | Shandong Hi-speed Service Area Management Co., Ltd. | 158,730.15 | 634,920.63 |
| Deposit received | Shandong Hi-Speed Jiaoan Science and Technology Development Co., Ltd | 473.68 | |
| Deposit received | Shandong Hi-Speed Materials Group Co., Ltd. | 9,082,800.00 | |
| Long-term Loans(note) | Weihai City Commercial Bank | 2,110,010,000.00 | 3,516,670,000.00 |
| Total amount of each equity instrument granted by the Company in the current period | 98,280,000.00 |
| Total amount of each equity instrument exercised by the Company in the current period | |
| Total amount of each equity instrument lapsed by the Company in the current period | |
| The range of exercise prices of stock options issued and outstanding by the Company at the end of the period and its remaining contractual term | Exercise price of RMB 3.96, remaining contract term of 42 months |
| Range of exercise prices of other equity instruments issued and outstanding by the Company at the end of the period and its remaining contractual term | None |
2. Equity-settled share-based payments
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Method of determining the fair value of equity instruments at the date of grant | Black-Scholes model |
| Basis for determining the number of exercisable equity instruments | Best estimate based on the number of employees with viable rights, etc. |
| Reasons for significant differences between current period estimates and prior period estimates | None |
| Accumulated amount of equity-settled share-based payments charged to capital surplus | 18,429,300.00 |
| Total expense recognized for equity-settled share-based payments during the period | 18,429,300.00 |
2. Profit distribution
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Profit or dividend to be distributed | 1,828,243,025.66 |
| Profits or dividends declared to be distributed after deliberation and approval |
distributed among segments according to the proportion of income.
(2). Financial information of the reporting segment.
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| 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 transport | Engineering material manufacturing | Real estate development | Others | Inter segment offset | Total |
| Operation revenue | 5,435,665,454.72 | 258,736,001.79 | 175,614,950.41 | 691,459,073.20 | 2,843,135,432.38 | 715,033,847.13 | 16,613,672.79 | 1,760,602,766.30 | 531,696,417.57 | 11,365,164,781.15 |
| Operating cost | 3,137,866,389.93 | 136,713,829.82 | 161,461,293.41 | 341,564,105.44 | 2,370,833,151.67 | 489,170,135.37 | 16,613,672.79 | 1,518,547,202.03 | 612,292,780.19 | 7,560,477,000.27 |
| Interest income | 203,672,282.92 | 1,086,218.29 | 102,710.99 | 713,593.06 | 81,629,885.68 | 615,926.39 | 59,585,744.88 | 277,192,431.63 | 530,731,558.88 | 93,867,234.96 |
| Interest expense | 1,373,619,243.73 | 66,376,226.70 | 207,584,766.78 | 214,608,761.14 | 49,281,439.40 | 8,157,330.80 | 137,117,981.89 | 144,039,556.89 | 498,946,765.16 | 1,701,838,542.17 |
| Total profit | 2,877,819,306.31 | 40,638,322.84 | -184,361,569.99 | 117,890,555.71 | 474,543,196.18 | 117,669,644.32 | -187,492,851.10 | 1,227,217,960.61 | 1,499,058,755.30 | 2,984,865,809.58 |
| Total assets | 71,471,631,996.98 | 2,726,617,762.20 | 4,256,131,788.01 | 8,467,520,803.50 | 8,590,817,999.06 | 1,065,238,257.98 | 3,640,162,642.19 | 19,379,803,591.34 | 26,680,621,317.34 | 92,917,303,523.92 |
| Total liabilities | 41,875,393,063.49 | 1,680,327,789.80 | 5,136,517,786.36 | 5,650,958,171.41 | 6,638,654,302.33 | 400,158,234.83 | 2,355,190,274.32 | 4,995,994,340.02 | 12,110,551,063.28 | 56,622,642,899.28 |
| Supplementary information | ||||||||||
| Depreciation and amortization | 1,737,855,989.41 | 90,369,260.66 | 101,055,190.37 | 194,150,570.30 | 158,457,793.27 | 21,838,451.75 | 1,162,753.10 | 35,100,971.73 | -7,222,415.80 | 2,347,213,396.39 |
| Non cash expenses other than depreciation and amortization |
(3). If the company has no report segments, or cannot disclose the total assets and total liabilities ofeach report segment, the reasons shall be explained.
□ Applicable √ Not applicable
(4). Other notes
□ Applicable √ Not applicable
7. Other important transactions and matters having an impact on investors' decisions
√ Applicable □ Not applicable
(1) According to the Maximum Amount Pledge Contract with Jinan Longao Branch of Industrial andCommercial Bank of China Limited (formerly known as Jinan Shanda Road Branch of Industrial andCommercial Bank of China Limited) with number of 2010 Shanda Road Zhizi No. 0011 signed by thecompany on July 27, 2010 and the Maximum Amount Pledge Contract signed with Jinan Longao Branch ofIndustrial and Commercial Bank of China Limited with number of 0160200031-2015 Shanda (Zhi) Zi No.37on October 18, 2016, the Company takes the toll right of Jinan Laiwu Section of Jinghu Expressway (auxiliaryline) as the pledge, and the main creditor's right period of the pledge is from July 27, 2010 to December 31,2031 (including the starting date and expiration date of the period). During the period of this pledge, ICBCJinan Long’ao Sub-branch provided the Company with a loan with a maximum balance ofRMB2,776,624,000. As of December 31, 2020, the loan balance was RMB 1,498,108,100 (including: RMB239,267,800 for the portion due within one year and RMB 1,258,840,400 for the portion due over one year).
(2) The company signed the Maximum Amount Pledge Contract with Jinan Longao Branch of Industrial andCommercial Bank of China Limited (formerly known as Jinan Shanda Road Branch of Industrial andCommercial Bank of China Limited) on November 16, 2018 with No. 016020031-2018 Shanda (Zhi) Zi0017. The Company takes the Qingyin Expresway K166 + 351 to K106 + 351 as the pledge, and the maincreditor's rights period of the pledge is from November 13, 2018 to December 31, 2038 (including the startdate and expiration date of the period). During the period of this pledge, ICBC Jinan Long’ao Sub-branchprovided the Company with a loan with a maximum balance of RMB50,000,000.00, and the balance of theloan as of December 31, 2020 is RMB 2,260,000,000.00 (including: RMB122,622,000 for the portion duewithin one year and RMB2,137,837,800 for the portion due over one year).
(3) As of December 31, 2020, the Company had a mortgage loan balance of RMB9,057,300,000 with ChinaDevelopment Bank Shandong Branch and Agricultural Bank of China Jinan Heping Sub-branch by pledginghighway toll rights and all the proceeds thereunder of Jinan-Qingdao Expressway (Jiqing Expressway) afterthe completion of the Jinan-Qingdao Expressway Improvement and Expansion Project, as follows.
(3) RMB Funds Loan Contract No. 3710201701100000620 dated December 15, 2017 with ChinaDevelopment Bank Shandong Branch, pledging the highway toll rights of section K246+351 to K166+351of Jiqing Expressway with a loan balance of RMB 4,528,300,000.00 as of December 31, 2020.Agricultural Bank of China Fixed Asset Loan Contract No. 37010420170000175 dated February 16, 2017with ABC Jinan Heping Sub-branch, pledging the highway toll rights of section K323+351 to K322+237 ofJinan-Qingdao Expressway with a loan balance of RMB66,000,000.00 as of December 31, 2020; AgriculturalBank of China Fixed Asset Loan Contract No. 37010420170000752 dated November 2, 2017 with ABCJinan Heping Sub-branch, pledging the road toll rights of section K322+236 to K318+015 of Jinan-QingdaoExpressway, with a loan balance of RMB 250,000,000.00; Agricultural Bank of China Fixed Asset LoanContract No. 37010420170000773 dated November 21, 2017 with ABC Jinan Heping Sub-branch, pledgingthe highway toll rights of section K318+014 to K315+650 of Jinan-Qingdao Expressway, with a loan balanceof RMB140, 000,000.00 as of December 31, 2020.The Company entered into agreements "Agricultural Bank of China Fixed Assets Loan Contract” Nos.37010420180000047, 37010420180000050, 37010420180000113, 37100201500082936-7,37100201500082936-8, 37100201500082936-9, 37100201500082936-10, 37100201500082936-11,37100201500082936-12 dated January 26, 2018, January 30, 2018, February 12, 2018, May 16, 2018, June26, 2018, July 23, 2018, September 5, 2018, September 17, 2018, and September 21, 2018, respectively, withABC Jinan Heping Sub-Branch, pledging the toll rights of section K323+351 to K247+351 of QingyinExpressway, with the loan balance as of December 31, 2020 of RMB4,044,000,000.00."Agricultural Bank of China Fixed Assets Loan Contract” No. 37100201500082936-14, dated October 23,2020 signed between the Company and ABC Jinan Heping Sub-Branch, pledging the highway toll rights ofsection K246+867 to K238+914 of Jiqing Expressway, with the loan balance as of December 31, 2020 ofRMB 29,000,000.00.
(4) According to the Fixed Assets Loan Contract No. PSBC43-YYT2019062201 dated June 22, 2019between Hunan Hengshao Expressway Co., Ltd and China Postal Savings Bank Corporation Changsha
Branch, the loan amount is RMB 1,809,000,000.00 and the loan term is from June 22, 2019 to June 21, 2037,with the borrowing interest rate floating up or down the RMB benchmark lending rate in the five-year orlonger maturity bracket applicable on the drawdown date of the People's Bank of China. On June 22, 2019,the Maximum Pledge Contract with No. of PSBC43-ZY2019062201 signed with Changsha Branch of ChinaPost Savings Bank Co., Ltd with the charging right of Hengshao Expressway as the pledge. As of December31, 2020, the balance of long-term borrowings under this loan contract is RMB1,734,000,000.00, of which50,000,000.00 due within one year has been reclassified to non-current liabilities due within one year.According to the loan contract NYJZ No. 430114001 (2006) No. 005 signed between Hunan HengshaoExpressway Co., Ltd. and Agricultural Bank of China Hunan Branch on September 25, 2006, the loan amountis RMB 2,900,000,000.00 and the actual loan issued is RMB 1,870,000,000.00, the loan term is fromSeptember 30, 2006 to June 30, 2037, with the borrowing interest rate floating up or down the benchmarkinterest rate of RMB loans published by the People's Bank of China for the same period. The maximum rightpledge contract NYGZZ No. 8 430114001 (2012) was signed on December 13, 2012. As of December 31,2020, the balance of long-term borrowings under this pledge contract is RMB1,178,000,000.00, of whichRMB18,000,000.00 is due within one year and has been reclassified to non-current liabilities due within oneyear.
(5) According to the mortgage contract for legal person No. ZH1900000035734 signed between ShandongExpressway Hunan Development Co., Ltd. and China Minsheng Bank Co., Ltd. Changsha Branch on March26, 2019, the contract amount is RMB246,000,000, the loan term is from March 26, 2019 to March 26, 2029,and the borrowing interest rate is the benchmark loan interest rate for the same period announced by thePeople's Bank of China and applicable on the signing date of the contract. Attached is the mortgage list ofthe company dated September 4, 2019 with room 3601-6601 with the real estate of No.1 building 1Huachuang International Plaza: Rm 3601-6601, No. 109, Section 1, Furong Middle Road, Kaifu District,Changsha City as the mortgage. As of December 31, 2020, the balance of long-term borrowings under thispledge contract is RMB22,100,000,000, of which RMB35,000,000.00 is due within one year and has beenreclassified to non-current liabilities due within one year.
(6) Shandong Ruitong Logistics Co., Ltd. entered into three short-term loan contracts, respectively(2093000)CZBank Ultra-short loan (2019)No.06299 (RMB10,000,000.00, loan term from September 9,2019 to September 28, 2019), (2093000)CZBank Ultra-short loan (2019)No.06925 (RMB4,000,000.00, loanterm from September 29, 2019 to December 31, 2019), (2093000)CZBank Ultra-short loan (2019)No.07874(RMB9,900,000.00, loan term from November 9, 2019 to January 1, 2020), in 2019 with Zheshang BankCo., Ltd. Jinan Branch, all of which are pledged by the bill pool. The company's loan balance with ZheshangBank Jinan Branch as of December 31, 2019 is RMB 0.00.
(7) On May 11, 2020, Shandong Ruitong Logistics Co., Ltd. entered into the Loan Contract for Merger andAcquisition Loan No. ZH2000000051148 with China Minsheng Bank, Ltd. for a loan amount of RMB26,300,000, with a term from May 11, 2020 to November 11, 2026. It is stated within the terms of the contractthat the lender is provided with a mortgage guarantee by Ruitong Logistics Company with its mining rightsas the mortgaged property under Mortgage Contract No. DB2000000039705, and the balance of this long-term borrowing as of December 31, 2020 is RMB 263,000,000.00.
(8) On May 28, 2020, Shandong Hi-Speed Railway Construction Equipment Co., Ltd. entered into a workingcapital loan contract No. 37010120200004204 with Agricultural Bank of China Linqu County Sub-branch,with a loan amount of RMB 60,000,000.00 and a loan term until May 26, 2021. The loan is secured by themortgage property of industrial buildings and land use rights of Shandong High-speed Railway ConstructionEquipment Co., Ltd. in accordance with the Maximum Mortgage Contract No. 37100620200005731, and thebalance of the loan is RMB 60,000,000.00 as of December 31, 2020.
(9) Jiyuan Jijin Expressway Co., Ltd respectively signed the loan contract and pledge contract with JiyuanBranch of Industrial and Commercial Bank of China Limited (hereinafter referred to as "Jiyuan Branch ofICBC"), Jiyuan Tiantan Road Branch of China Construction Bank Co., Ltd (hereinafter referred to as "JiyuanTiantan Road Branch of China Construction bank") and Henan Jiyuan Rural Commercial Bank Co., LtdWulongkou Branch (hereinafter referred to as "Wulongkou Branch of Henan Agricultural CommercialBank") with the toll right of Jiyuan Jincheng Expressway as the pledge. As of December 31, 2020, the netvalue of the pledged toll rights is RMB 1,161,715,100 and the loan balance is RMB 357,000,000 (including:
RMB 68,000,000 for the portion due within one year and RMB 289,000,000 for the portion due over oneyear), as follows:
On April 30, 2009, entered into JG (2009) No. 001 RMB Funds Loan Contract with CCB Jiyuan TiantanRoad Sub-branch and also entered into the Rights Pledge Contract No. JG (2009) No. 001 - Pledge No. 01;the loan balance is RMB 31,000,000.00 (including: RMB 20,000,000.00 for the portion due within one yearand RMB 11,000,000.00 for the portion due over one year).
8. Other
□ 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
Item accrued by combination:
(2). Classified disclosure by bad debt provision method.
□ Applicable √ Not applicable
Provision for bad debts accrued on an individual basis:
□ Applicable √ Not applicable
Provision for bad debts accrued on a portfolio basis:
□ Applicable √ Not applicable
If the provision for bad debts is based on the typical model of expected credit losses, please refer to thedisclosure of other receivables:
□ Applicable √ Not applicable
(3). Situation of bad-debt provision.
□ Applicable √ Not applicable
Of which the significant amount of provision for bad debts recovered or reversed in the current period:
□ Applicable √ Not applicable
(4). Accounts receivable actually written off in the current period.
□ Applicable √ Not applicable
Write off of important accounts receivable
□ Applicable √ Not applicable
(5). Top five accounts receivable 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 statements:
□ Applicable √ Not applicable
2. Listing of other receivable projects
□ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Item | Ending balance | Beginning balance |
| Interest receivable | ||
| Dividends receivable | 75,037,985.75 | |
| Other receivables | 6,144,530,054.07 | 4,489,749,765.83 |
| Total | 6,219,568,039.82 | 4,489,749,765.83 |
□ Applicable √ Not applicable
(2) Significant overdue interest
□ Applicable √ Not applicable
(3). Provision for bad debts.
□ Applicable √ Not applicable
Other statements:
□ Applicable □ Not applicable
(4). Dividends receivable.
□ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Project (or investee unit) | Ending balance | Beginning balance |
| Jinan Changying transportation infrastructure investment fund partnership (limited partnership) | 75,037,985.75 | |
| Total | 75,037,985.75 |
| Aging | Ending book balance |
| Within 1 year | |
| Including: sub items within 1 year | |
| Sub-total within 1 year | 2,506,690,974.76 |
| 1 to 2 years | 2,007,613,926.29 |
| 2 to 3 years | 187,534,227.84 |
| 3 to 4 years | 165,009,949.86 |
| 4 to 5 years | 533,905,782.13 |
| More than 5 years | 749,682,852.36 |
| Total | 6,150,437,713.24 |
| Nature of receivables | Ending book balance | Beginning book balance |
| Advances from subsidiaries | 6,004,824,421.05 | 4,425,695,749.97 |
| Toll split | 35,587,573.15 | 66,750,325.29 |
| Advance for engineering materials | ||
| Others | 110,025,719.04 | |
| Total | 6,150,437,713.24 | 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 (credit impairment occurred) | ||
| Balance as of January 1, 2020 | 2,662,626.93 | 33,682.50 | 2,696,309.43 | |
| On January 1, 2020, balance will be transferred into | ||||
| -Carried to Phase II | ||||
| - Carried to Phase III | ||||
| - Carried back to Phase II | ||||
| - Carried back to Phase I | ||||
| Accrual in current period | 3,211,349.74 | 3,211,349.74 | ||
| Amount reversed in current period | ||||
| Amount resold in current period | ||||
| Amount written off in current period | ||||
| Other changes | ||||
| Balance as of December 31, 2020 | 5,873,976.67 | 33,682.50 | 5,907,659.17 |
| Category | Beginning balance | Current change amount | Ending balance | |||
| Accrual | Recovery or reversal | Resale or writing off | Other changes | |||
| Bad debts of other receivables | 2,696,309.43 | 3,211,349.74 | 5,907,659.17 | |||
| Total | 2,696,309.43 | 3,211,349.74 | 5,907,659.17 | |||
□ Applicable √ Not applicable
(5). Other receivables actually written off in the current period.
□ Applicable √ Not applicable
(6) Top five other receivables with ending balances grouped by party in arrears
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| Company name: | Nature of receivables | Ending balance | Aging | Proportion in total closing balance of other receivables (%) | Ending balance of provision for bad debt |
| Shandong Hi-Speed Investment Development Co., Ltd. | Principal and interest | 3,162,667,355.21 | 1-9 years | 51.42 | |
| Hunan Hengshao Expressway Co., Ltd. | Principal and interest | 2,097,730,957.42 | 1-8 years | 34.11 | |
| Shandong Hi-Speed (Shenzhen) Investment Co., Ltd. | Principal and interest | 360,000,000.00 | 1-3 years | 5.85 | |
| Yantai Hesheng Real Estate Development Co., Ltd. | Principal and interest | 282,705,175.01 | 1-2 years | 4.6 | |
| Shandong Hi-Speed Hunan Development Co., Ltd. | Principal and interest | 60,251,037.49 | 1-2 years | 0.98 | |
| Total | / | 5,963,354,525.13 | 96.96 |
| Item | Ending balance | Beginning balance | ||||
| Book balance | Impairment reserves | Book value | Book balance | Impairment reserves | Book value | |
| Investment in subsidiaries | 14,552,751,366.00 | 14,552,751,366.00 | 14,682,540,943.38 | 14,682,540,943.38 | ||
| Investment in associates and joint ventures | 7,645,571,356.62 | 7,645,571,356.62 | 7,402,022,274.35 | 7,402,022,274.35 | ||
| Total | 22,198,322,722.62 | 22,198,322,722.62 | 22,084,563,217.73 | 22,084,563,217.73 | ||
(1) Investment in subsidiaries
√ Applicable □ Not applicable
Unit: yuan Currency: CNY
| 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 Jincheng Equity Investment Partnership (Limited Partnership) | 5,010,000,000.00 | 1,510,000,000.00 | 3,500,000,000.00 | |||
| Hubei Wujing Expressway Development Co., Ltd. | 1,481,824,942.90 | 1,481,824,942.90 | ||||
| Jinan Changying Jinhai Investment Partnership (Limited Partnership) | 2,114,029,430.00 | 2,114,029,430.00 | ||||
| Jinan Changying Jin'an Investment Partnership (Limited Partnership) | 2,456,080,000.00 | 2,456,080,000.00 | - | |||
| Total | 14,682,540,943.38 | 3,836,290,422.62 | 3,966,080,000.00 | 14,552,751,366.00 |
| Investee | Beginning balance | Increase or decrease in current period | Ending balance | Ending balance of | |||||||
| Additional | Decreased | Profits and | Adjustment of | Other equity | Declaration | Accrual of | Others | ||||
| investment | investment | losses on investment recognized by equity method | other comprehensive income | changes | and distribution of cash dividends or profits distribution | impairment reserves | impairment reserves | ||||
| I. Joint venture | |||||||||||
| Shandong Hi-Speed Changying Equity Investment Management Co., Ltd. | 50,870,462.10 | 1,768,533.97 | 52,638,996.07 | ||||||||
| Subtotal | 50,870,462.10 | 1,768,533.97 | 52,638,996.07 | ||||||||
| II. Associated enterprises | |||||||||||
| Weihai City Commercial Bank | 2,659,454,352.14 | 197,058,843.04 | -34,300,106.11 | -74,467,431.98 | 69,395,798.70 | 2,678,349,858.39 | |||||
| Shandong High-speed Logistics Group Co., Ltd. | 692,500,766.48 | 17,947,666.27 | 710,448,432.75 | ||||||||
| Shandong High-speed Engineering Project Management Co. Ltd. | 61,883,479.57 | 1,737,768.98 | 21,738,329.14 | -7,655,851.91 | 74,228,187.82 | ||||||
| Shandong Hi-Speed Changying Huitong Equity Investment Fund Partnership (Limited Partnership) | 18,773,771.68 | 1,280,807.66 | 20,054,579.34 | ||||||||
| Dongxing Securities Co., Ltd. | 2,372,539,748.49 | 72,931,666.23 | -24,107,726.41 | 16,798,500.00 | 2,404,565,188.31 | ||||||
| Fujian | 414,739,204.41 | 25,706,280.73 | 4,134,026.52 | 436,311,458.62 | |||||||
| Longma Environmental Sanitation Equipment Co., Ltd. | |||||||||||
| Shandong Environmental Protection Industry Co., Ltd | 8,616,004.04 | 570,224.04 | 9,186,228.08 | ||||||||
| Shandong General Aviation Service Co., Ltd | 89,900,000.00 | 1,146,718.15 | 91,046,718.15 | ||||||||
| Shandong Hi-Speed Zhongtong New Growth Driver Industrial Investment Fund of Shandong Province (Limited Partnership) | 34,500,000.00 | 34,500,000.00 | |||||||||
| CSIC EIT (Shandong) City Operation Service Co., Ltd | 9,800,000.00 | 9,800,000.00 | |||||||||
| Shandong Hi-Speed Chengtai Venture Capital Fund for New Growth Drivers of Shandong Province (limited | 20,305,753.42 | 20,305,753.42 |
| partnership) | |||||||||||
| Jinan Changying Transportation Infrastructure Investment Fund Partnership | 678,033,236.41 | 100,000,000.00 | 55,143,070.96 | 833,176,307.37 | |||||||
| Shandong Hi-Speed Yingli New Energy Co., Ltd. | 23,993,777.36 | 25,000,000.00 | -2,886,115.02 | 3,892,337.66 | |||||||
| Qingdao Changying Jinpeng Equity Investment Partnership (Limited Partnership) | 420,617,471.68 | 165,000,000.00 | 15,342,176.63 | 270,959,648.31 | |||||||
| Subtotal | 7,351,151,812.26 | 254,505,753.42 | 191,737,768.98 | 405,979,667.83 | -58,407,832.52 | -74,467,431.98 | 90,328,325.22 | -3,763,514.25 | 7,592,932,360.56 | ||
| Total | 7,402,022,274.36 | 254,505,753.42 | 191,737,768.98 | 407,748,201.80 | -58,407,832.52 | -74,467,431.98 | 90,328,325.22 | -3,763,514.25 | 7,645,571,356.63 |
5. Operating revenue and operating cost
(1). Operating revenue and operating cost.
√ Applicable □ Not applicable
(2). Incomes from contract
□ Applicable √ Not applicable
Unit: yuan Currency: CNY
| Item | Amount incurred in current period | |
| Income | Cost | |
| Main business | 5,394,830,592.81 | 3,120,847,666.36 |
| including toll revenue in Shandong Province | 4,789,117,560.31 | 2,560,753,129.25 |
| Revenue from expressway trusteeship | 605,713,032.50 | 560,094,537.11 |
| Other businesses | 38,714,949.38 | 5,673,870.04 |
| Including: Rental income | 22,219,638.11 | 3,753,860.04 |
| Others | 16,495,311.27 | 1,920,010.00 |
| Total | 5,433,545,542.19 | 3,126,521,536.40 |
| Item | Amount incurred in previous period | |
| Income | Cost | |
| Main business | 5,389,031,414.38 | 2,565,600,777.25 |
| including toll revenue in Shandong Province | 4,858,911,302.83 | 2,072,152,309.10 |
| Revenue from expressway trusteeship | 27,639,681.86 | 493,448,468.15 |
| Other businesses | 27,639,681.86 | 4,096,290.04 |
| Including: Rental income | 22,114,563.87 | 3,753,860.04 |
| Others | 5,525,117.99 | 342,430.00 |
| Total | 5,416,671,096.24 | 2,569,697,067.29 |
| Item | Amount incurred in current period | Amount incurred in previous period |
| Income from long-term equity investment based on cost method | 1,264,186,640.42 | 1,077,133,517.75 |
| Long-term equity investment income calculated by the equity method | 407,748,201.80 | 309,202,461.97 |
| Investment income from disposal of long-term equity | 8,228,862.59 | |
| Interest income of debt investment during holding period | 209,446,263.65 | |
| Total | 1,889,609,968.46 | 1,386,335,979.72 |
| Item | Amount | Description |
| Profit or loss on disposal of non-current assets | -29,117,978.28 | Mainly arising from disposal of fixed assets |
| Tax return or reduction approved beyond authority or without formal approval documents | ||
| Government subsidies included in the current profit and loss (closely related to the business of the enterprise, except the government subsidies entitled according to the unified national standard quota or quantitative) | 77,882,681.46 | Mainly for construction compensation and various incentive grants |
| 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 |
| 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 | 53,591,622.82 | Mainly generated due to Shenzhen company’s investment projects |
| 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 | 62,349,030.87 | Mainly as a result of road compensation income and interest compensation received from Shanghai Zeta |
| Other profit or loss items in line with definition of non-recurring profit or loss | ||
| Affected amount of income tax | -24,201,265.48 | |
| Affected amount of minority shareholders' equity | -100,206,879.46 | |
| Total | 222,129,972.30 |
| 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 | 6.30 | 0.402 | 0.401 |
| Net profit attributable to common shareholders of the Company after deducting non-recurring profit and loss | 5.82 | 0.365 | 0.364 |
Chapter XII List of Documents Available for Inspection
| Contents of reference file | |
| Contents of reference file | |
| Contents of reference file |