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山东高速:山东高速股份有限公司2020年年度报告(英文版) 下载公告
公告日期:2021-03-31

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 directorName of absent directorReason for absenceName of delegate
Independent DirectorFan YuejinBecause of workWei 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-Speedrefer toShandong High-speed Co., Ltd
Shandong Hi-Speed Group, Hi-Speed Group, Group Companyrefer toShandong Hi-Speed Group Co., Ltd.
China Merchants Expressway, CMET, China Merchants Huajianrefer toChina Merchants Expressway Network & Technology Holdings Co., Ltd.
Xuyu Companyrefer toShandong Hi-Speed Henan Xuyu Road Co., Ltd.
Weilai Companyrefer toShandong Hi-Speed Weilai Highway Co., Ltd.
Yunguan Companyrefer toShandong Hi-Speed Highway Operation Management Co., Ltd.
Investment Companyrefer toShandong Hi-Speed Investment Development Co., Ltd.
Jinan Construction Companyrefer toShandong Hi-Speed Jinan Investment Co., Ltd.
Zhangqiu Companyrefer toShandong Hi-Speed Zhangqiu Property Development Co., Ltd.
Jidong Development Corporationrefer toShandong Hi-Speed Jidong Development Co., Ltd (current name) Shandong Expressway Zhangqiu Real Estate Development Co., Ltd (former name)
Industrial Corporationrefer toShandong Hi-Speed Industrial Development Co., Ltd.
Jitai Miningrefer toShandong Hi-Speed Jitai Mining Investment Co., Ltd.
Environmental Protection Science and Technologyrefer toShandong Hi-speed Environmental Technology Co., Ltd.
Henan Development Company, Henan Companyrefer toShandong Hi-Speed Henan Development Co., Ltd.
Hengshao Companyrefer toHunan Hengshao Expressway Co., Ltd.
Shenzhen Companyrefer toShandong Hi-Speed (Shenzhen) Investment Co., Ltd.
Hesheng Company, Yantai Heshengrefer toYantai Hesheng Real Estate Development Co., Ltd.
Lijin Bridge Companyrefer toShandong Lijin Huanghe Highway and Bridge Co., Ltd.
Transport Service Companyrefer toShandong Hi-Speed Qilu Construction Transport Administration Service Co., Ltd.
Weihai Shanghangrefer toWeihai City Commercial Bank Co., Ltd.
Dongxing Securitiesrefer toDongxing Securities Co., Ltd.
Changying Companyrefer toShandong Hi-Speed Changying Equity Investment Management Co., Ltd.
Fulongmarefer toFujian Longma Environmental Sanitation Equipment Co., Ltd.
Wujing Companyrefer toHubei Wujing Expressway Development Co., Ltd.
Changying Jinpengrefer toQingdao Changying Jinpeng Investment Partnership (Limited Partnership)
Changying Jinhairefer toJinan Changying Jinhai Investment Partnership (Limited Partnership)
Changying Jin'anrefer toJinan Changying Jin'an Investment Partnership (Limited Partnership)
Changying Jinchengrefer toJinan Changying Jincheng Equity Investment Partnership (Limited Partnership)
Puyuan Real Estaterefer toJinan Puyuan Real Estate Co., Ltd.
Reconstruction and Extension of Jinan-Qingdao Expressway, Reconstruction and Extension Project of Jinan-Qingdao Expresswayrefer toJinan-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 Projectrefer toReconstruction 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 Projectrefer toBeijing-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 Projectrefer toBeijing-Taipei Expressway Qihe-Jinan Section Renovation and Expansion Project
Jijin Companyrefer toJiyuan City Jijin Expressway Co., Ltd.
Logistics Grouprefer toShandong High-speed Logistics Group Co., Ltd.
Sichuan Companyrefer toShandong Hi-speed Sichuan Industrial Development Co., Ltd.
ShineWingrefer toShinewing Certified Public Accountants (Special Partnership)
Rail Transit, Rail Transit Grouprefer toShandong Hi-speed Rail Transit Group Co., Ltd.
Construction Management Grouprefer toShandong Hi-Speed Construction Group Co., Ltd
Luyu Companyrefer toLuzhou Southeast Expressway Development Co., Ltd.
Qilu Transportation Development Group, Qilu Jiaotong Development, Qilu Transportationrefer toQilu Transportation Development Group Co., Ltd
Guangdong Expressway Arefer toGuangdong Provincial Expressway Development Co., Ltd.
Engineering consulting companyrefer toShandong Hi-Speed Group Engineering Consulting Co., Ltd (former name), Shandong High Speed Engineering Project Management Co., Ltd;
Railway Construction Equipment Companyrefer toShandong High Speed Railway Construction Equipment Co., Ltd.

Section II Company Profile and Major Financial IndicatorsI. Company Information

Chinese Name of the CompanyShandong High-speed Co., Ltd
Abbreviation of Chinese NameSDHS
English Name of the CompanyShandong Hi-Speed Company Limited
Abbreviation of English Name of the CompanySDHS
Legal Representatives of the CompanySai Zhiyi
Secretary of Board of DirectorsRepresentative of Securities Affairs
NameSui RongchangCheng Huai
Contact AddressNo. 5006 Aoti Middle Road, Jinan, Shandong, P. R. C.No. 5006 Aoti Middle Road, Jinan, Shandong, P. R. C.
Tel0531-892600520531-89260052
Fax0531-892600500531-89260050
E-mailsdhs@sdecl.com.cnsdhs@sdecl.com.cn
Registered Address of the CompanyBlock A, Qixing Jixiang Building, No. 29 Wenhua East Road, Jinan, Shandong, China
Postal Code of the Registered Address250014
Office AddressNo. 5006 Aoti Middle Road, Jinan, Shandong, China
Postal Code of the Office Address250101
Company Websitehttp://www.sdecl.com.cn
E-mailsdhs@sdecl.com.cn
Name of Newspapers Designated for Information DisclosureChina Securities Journal, Shanghai Securities News, Securities Times
Website Designated by CSRC for Publishing Annual Reportshttp://www.sse.com.cn
Place for Inspection of Annual ReportsNo. 5006, Aoti Middle Road, Jinan City, Shandong Province, Shanghai Stock Exchange
Profiles of the Company's Shares
Type of SharesPlace of Listing of the Company's SharesStock AbbreviationStock CodeStock Abbreviation Before Change
A ShareShanghai Stock ExchangeSDHS600350Shandong Infrastructure
Public Accountants Firm Hired by the Company (Domestic)NameShinewing Certified Public Accountants (Special Partnership)
Address8/F, Block A, Fuhua Mansion, No.8 Chaoyangmen Beidajie, Dongcheng District, Beijing, China
Names of Signatory AccountantsWang 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 Data20202019Year-on-year increase or decrease (%)2018
After adjustmentBefore adjustmentAfter adjustmentBefore adjustment
Operation revenue11,365,164,781.1510,414,550,126.207,444,768,363.459.1310,936,831,091.006,828,798,848.13
Net profit attributable to shareholders of listed company2,038,999,018.133,126,071,417.083,043,591,513.37-34.773,012,199,696.222,943,890,710.90
Net profit attributable to shareholders of listed company after deducting non-recurring profit or loss1,860,050,653.692,545,174,621.612,545,174,621.61-26.921,931,718,179.551,931,718,179.55
Net cash flow from operating activities4,309,087,074,786,463,592,100.075,501,050,549.13-33.334,230,418,467.093,890,560,274.02
End of 2020End of 2019Increase or Decrease as at the end of 2019 from the end of 2018 (%)End of 2018
After adjustmentBefore adjustmentAfter adjustmentBefore adjustment
Net assets attributable to shareholders of listed company31,450,761,771.4733,275,842,501.2032,121,191,628.12-5.4828,331,011,323.0527,261,133,946.54
Total Assets92,917,303,523.9288,022,860,778.6980,359,625,413.305.5675,946,049,747.5768,596,136,422.09

(II) Major Financial Indicators

Major Financial Indicators20202019Year-on-year increase or decrease (%)2018
After adjustmentBefore adjustmentAfter adjustmentBefore adjustment
Basic earnings per share (yuan/share)0.4020.6460.631-37.770.6260.612
Diluted earnings per share (yuan/share)0.4010.6460.631-37.930.6260.612
Net Profit of Basic Earnings per Share after Non-recurring Items (RMB/Share)0.3650.5270.527-30.740.4020.402
Weighted average return on net assets (%)6.3010.0810.73Decrease by 3.78 percentage points10.2510.38
Weighted Average Return on Net Assets after Non-recurring Items (%)5.828.978.97-3.157.087.08
First quarter (January - March)Second quarter (April-June)Third quarter (July-September)Fourth quarter (October-December)
Operation revenue1,625,991,650.472,423,648,252.043,535,026,547.593,780,498,331.05
Net profit attributable to shareholders of listed company-284,291,651.41541,252,167.201,078,962,475.33703,076,027.01
Net profit attributable to shareholders of listed companies after non-recurring items-336,655,518.33476,047,352.601,070,149,241.61650,509,577.81
Net cash flow from operating activities99,945,925.101,550,382,369.881,668,238,174.56990,520,605.24
Non-recurring Items and AmountsAmount in 2020Annotation (If applicable)Amount in 2019Amount in 2018
Profit or loss on disposal of non-current assets-18,996,597.72Mainly arising from disposal of fixed assets484,378,503.371,701,267,641.00
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 standards78,000,402.78Mainly for construction compensation and various incentive grants29,188,375.1324,980,680.30
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 date181,832,760.37Due to the merger of the Rail Transit161,725,301.39403,725,014.48
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 investment6,615,000.0048,259,154.25
Reversal of provisions for impairment for receivables subject to separate impairment test and contract assets109,439,615.28
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 above62,349,030.87Mainly as a result of road compensation income and interest compensation received from Shanghai Zeta23,993,867.2823,665,088.86
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
Total178,948,364.44580,896,795.471,080,481,516.67
Project NameBeginning balanceEnding balanceCurrent ChangeInfluence Sum to Current Profit
Evergrande Real Estate Group Co., Ltd.500,000.000
Yike Tower Investment Project56,389.3256,389.32
Specific assets support plan for South Cement Company Limited3,570.933,570.93
Specific assets support plan for Chengtay Lease6,833.190
Project of Qingdao Wudaokou New Energy Vehicle Industry Fund100,000.000
Shandong Hi-speed Culture Media Co., Ltd.1,761.471,761.47
Shandong Hi-Speed Greentown Laiwu Xueye Lake Development Co., Ltd.518.290-518.29
Shandong Weilai High Speed Railway Co., Ltd.3,162.683,162.68
Shandong Railway Investment Holding Group Co., Ltd.30,000.0030,000.00
BOCOM Schroders-Champion Rental Asset-Backed Special Plan3,787.92
Receivables financing10,854.7415,000.00
Total713,090.62113,672.32-518.29
Name of Road Section20162017201820192020
TollTraffic VolumeTollTraffic VolumeTollTraffic VolumeTollTraffic VolumeTollTraffic Volume
Jinan-Qingdao Expressway27.073,67024.013,66412.32,56819.893,16229.684,613
Relevant sections of Beijing-Taibei Expressway19.264,65719.085,01219.34,69217.674,7098.533,052
Jinan-Laiwu High-speed Railway2.916484.287825.239774.551,1933.81,400
Tai'an-Qufu Road0.172850.253400.263620.33170.25585
Xuchang-Yuzhou Expressway1.222621.733372.083991.983981.37366
Weihai-Rushan Expressway1.215031.35641.365941.46011.1671
Jinan Yellow River Bridge0.171350.1388------
Jinan Yellow River Second Bridge4.36-4.78-5.03-5.09-2.83-
Binzhou Yellow River Bridge0.09810.0656------
Pingyin Yellow River Bridge14330.78362------
Weifang-Laiyang Expressway2.835532.986282.666312.966982.7644
Hengyang-Shaoyang Expressway2.022532.042462.183202.232831.81253
Lijin Yellow River Bridge16901.167291.247720.654790.43471
Henan Jiyuan-Jincheng Expressway----1.131082.692781.392
Hubei Wuhan-Jingmen Expressway----8.798089.719487.12752
Total63.3112,17062.5812,80861.5612,23169.1213,06660.9212,899

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 serviceInvestment enterprise
Legend:TransportationReal estate developmentInvestment and operationOthers
Primary serviceEquity 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/NName of Road SectionRoad SectionsEquity of the CompanyApproved Expiry Date of Toll CollectionToll Mileage (Kilometer)Number of LanesStatus
1Jinan-Qingdao ExpresswayJinan-Qingdao Expressway (Section in Shandong of Qingdao-Yinchuan Expressway)100%2044.12318.58In operation
2Relevant sections of Beijing-Taibei ExpresswayPhase I of Dezhou-Qihe Section of Beijing-Fuzhou Expressway100%2022.11.1789.0344Reconstruction and expansion
3Phase II of Dezhou-Qihe Section of Beijing-Fuzhou Expressway100%2025.11.302.254Reconstruction and expansion
4Jinan Yellow River Second Bridge100%2032.04.165.756In operation
5Qihe-Jinan Section of Beijing-Fuzhou Expressway100%2024.10.3121.9716In operation
6Jinan-Qingdao Connection Line of Beijing-Fuzhou Expressway100%2024.10.3116.3764In operation
7Jinan-Tai'an Section of Beijing-Fuzhou Expressway100%2024.10.3159.5466Reconstruction and expansion
8Jinan-Laiwu High-speed RailwayJinan-Laiwu Expressway (side road) of Beijing-Shanghai Expressway100%2034.10.2176.0484In operation
9Weifang-Laiyang ExpresswayWeifang-Laiyang Expressway100%2024.07.31140.6374In operation
10Weihai-Rushan ExpresswayWeihai-Rushan Expressway100%2032.12.1970.554In operation
11Tai'an-Qufu RoadTai'an-Qufu First-class Highway of State Road G104100%2025.11.1564.1664In operation
12Lijin Yellow River BridgeLijin Yellow River Bridge65%2029.09.251.354In operation
13Xuchang-Yuzhou ExpresswayXuchang-Yuzhou Expressway in Henan60%2036.8.2839.074In operation
14Jiyuan-Jincheng ExpresswayJiyuan-Jincheng (Provincial Border) Section of Erenhot-Guangzhou Expressway54%2038.9.920.564In operation
15Hengyang-ShaoyangHeyang-Shaoyang Expressway in60%2040.12.29132.0594In operation
ExpresswayHunan
16Wuhan-Jingmen ExpresswayWuhan-Jingmen Expressway in Hubei60%2040.5183.214In operation
17Luzhou-Chongqing ExpresswaySichuan Chengdu-Chongqing Ring Road Hegiang (Chongqi-Sichuan border) to Naxi section expressway80%6/27/204373.154In operation
Total1314.227

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 lineNorth-south longitudinal lineEast-west horizontal line
S/Norigin-destinationMileageS/Norigin-destinationMileageS/Norigin-destinationMileage
1Beijing-Shanghai12451Hegang-Dalian13901Suifenhe-Manzhouli1520
2BeiBeijing-Taibeipei20302Shenyang-Haikou37102Hunchun-Ulanhot885
3Beijing-Hong Kong and Macao22853Changchun-Shenzhen35803Dandong-Xilinhot960
4Beijing-Kunming28654Jinan-Guangzhou21104Rongcheng-Wuhai1820
5Beijing-Lhasa37105Daqing-Guangzhou35505Qingdao-Yinchuan1600
6Beijing-Urumqi25406Erenhot-Guangzhou26856Qingdao-Lanzhou1795
7Beijing-Harbin12807Baotou-Maoming31307Lianyungang-Horgos4280
8Lanzhou-Haikou25708Nanjing-Luoyang710
9Chongqing-Kunming8389Shanghai-Xi'an1490
10Shanghai-Chengdu1960
11Shanghai-Chongqing1900
12Hangzhou-Ruili3405
13Shanghai-Kunming2370
14Fuzhou-Yinchuan2485
15Quanzhou-Nanning1635
16Xiamen-Chengdu2295
17Shantou-Kunming1710
18Guangzhou-Kunming1610
S/NName of Road SectionAverage Daily in 2019Average Daily in 2020Year on year
1Jinan-Qingdao Expressway544.911034.0389.76%
2Relevant sections of Beijing-Taibei Expressway484.03297.09-38.62%
3Jinan-Laiwu High-speed Railway124.68132.496.26%
4Tai'an-Qufu Section of Beijing-Fuzhou Expressway8.138.879.06%
5Xuchang-Yuzhou Expressway54.2347.78-11.90%
6Weihai-Rushan Expressway38.4238.18-0.64%
7Jinan Yellow River Second Bridge139.4698.64-29.27%
8Weifang-Laiyang Expressway81.0494.0016.00%
9Hengyang-Shaoyang Expressway61.0663.033.24%
10Lijin Yellow River Bridge17.9214.85-17.15%
11Henan Jiyuan-Jincheng Expressway73.7345.35-38.28%
12Hubei Wuhan-Jingmen Expressway266.11248.15-6.75%
Total1893.712122.4512.08%

(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

ItemAccrual in 2015Percentage
Long-term equity investment income calculated by the equity method57033.9738.74%
Where: Weihai Shanghang19705.8834.55%
Dongxing Securities7293.1712.79%
Guangdong Expressway A6870.9512.05%
Fulongma2570.634.51%
Investment income of trading financial assets during the holding period.49337.8233.51%
Where: Evergrande Real Estate Group Co., Ltd.43978.6689.14%
Yike Tower Investment Project4468.359.06%
Interest income of debt investment during holding period39934.2027.12%
Where: Weifang Shangao new and old kinetic energy conversion fund20944.6340.46%
Debt Investment under Changying Jin'an7326.6037.16%
Debt Investment under Changying Jin Peng4777.509.08%
BOE Project3808.297.36%
Investment income from disposal of long-term equity931.640.63%
Including: equity transfer income of the engineering consulting company873.7093.78%
Total return on investment147237.63100.00%

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

SubjectCurrent-period AmountNumber in the corresponding period of the previous yearChange proportion (%)
Operation revenue11,365,164,781.1510,414,550,126.209.13
Operating cost7,560,477,000.275,764,173,616.1631.16
Selling expenses10,629,082.6416,982,565.44-37.41
Management expenses537,241,518.01578,995,480.68-7.21
Research and development (R&D) expenses67,632,819.1740,248,725.2668.04
Financial expenses1,608,808,138.981,142,084,330.2840.87
Net cash flow from operating activities4,309,087,074.786,463,592,100.07-33.33
Net cash flow from investment activities-4,651,802,759.57-9,992,889,768.69-
Net cash flow from financing activities762,623,383.743,613,805,572.66-78.90

(1) Analysis of Operations by Industry, Product or Region

Unit: yuan Currency: CNY

Principal operations by industry
By SectorOperation revenueOperating costGross 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 toll5,955,762,447.623,217,092,081.4945.98-11.4910.84Decrease by 10.88 percentage points
Revenue from railway transportation2,494,571,703.631,960,753,618.8721.4021.6717.48Increase by 2.80 percentage points
Revenue from sales of goods1,791,583,327.911,474,542,403.1317.70123.10156.11Decrease by 10.61 percentage points
Revenue from project construction224,352,596.01198,432,758.2311.55331.80875.53Decrease by 49.30 percentage points
Revenue from expressway trusteeship605,713,032.50560,513,537.117.4618.3213.59Increase by 3.85 percentage points
Others110,940,835.56109,246,356.371.5329.6767.71Decrease by 22.34 percentage points
Principal operations by product
By productOperation revenueOperating costGross 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 regionOperation revenueOperating costGross 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 (%)
Shandong4,829,952,422.222,577,352,852.8246.64-5.2916.08Decrease by 9.82 percentage points
Henan258,736,001.79136,713,829.8247.16-42.89-10.72Decrease by 19.04 percentage points
Hunan175,614,950.41161,461,293.418.06-18.82-3.19Decrease by 14.84 percentage
points
Hubei691,459,073.20341,564,105.4450.60-27.93-5.67Decrease by 11.66 percentage points
Total5,955,762,447.623,217,092,081.4945.98-11.4910.84Decrease by 10.88 percentage points
Operations by industry
By SectorCost structure itemsAmount in current periodPercentile (%) of total cost of the current periodAmount of the corresponding period in the previous yearPercentile (%) of total cost for the corresponding period in the previous yearYear-on-year change proportion of amount (%)Explanations
Toll roadPayroll65,565.908.6768,878.5211.95-4.81
Toll roadDepreciation and amortization198,087.3126.20157,363.2727.3025.88Mainly due to the increase in amortization of Jinan-Qingdao Expressway
Toll roadSpecific maintenance cost52,965.187.0159,594.9110.34-11.12
Toll roadOther Cost5,090.820.674,397.260.7615.77
Subtotal321,709.2142.55290,233.9650.3510.84

Other statementsNone.

3. Cost

√ Applicable □ Not applicable

Unit: yuan Currency: CNY

SubjectCurrent-period AmountNumber in the corresponding period of the previous yearChange proportion (%)Explanations
Selling expenses10,629,082.6416,982,565.44-37.41The change is mainly due to the decrease in transportation expenses and payroll included in sales expenses;
Research and development (R&D) expenses67,632,819.1740,248,725.2668.04The change is mainly due to the Company's increased investment in research and development;
Financial expenses1,608,808,138.981,142,084,330.2840.87The 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 period67,632,819.17
Capitalization R&D investment in the current period0
Sum of R&D investment67,632,819.17
Proporation of R&D investment sum in operating revenue (%)0.60
The number of R&D staff of the Company134
Proportion of R&D staff in the staff of the Company (%)2.21
Proportion of capitalization R&D investment (%)0
ItemNumber at the end of the current periodNumber at the end of the previous periodChange proportion (%)Explanations
Cash paid for purchased commodities and accepted services6,376,558,265.494,745,474,004.6434.37Mainly due to the growth of trading volume, resulting in an increase in procurement;
Other cash paid related to operating activities436,716,594.371,481,600,879.55-70.52Mainly due to the decrease in current account;
Cash received from investment incomes1,888,574,853.171,038,478,559.4281.86Mainly 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 assets5,999,826.932,961,505.56102.59Mainly due to the increase in disposal of fixed asset;
Net cash received from disposal of subsidiaries and other business entities0.00312,672,429.53-100.00Such large amount in the previous period was mainly caused by disposal of Jinan Construction
Other cash received related to investment activities867,957,496.22533,681,928.1962.83Mainly 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 assets6,594,615,778.919,721,032,984.36-32.16Mainly due to reduction of expenditure on expressway reconstruction and expansion projects
Net cash paid for acquisition of subsidiaries and other business entities808,945.020.00Payment for getting Shandong Ludao Construction Engineering Co., Ltd.
Other cash paid related to investment activities10,841,593.130.00Mainly for the disposal of New Material Technology and Changying Jin’an
Other cash received related to financing activities600,000,000.0023,611,355.512,441.15Mainly due to receipt of investment fund for capacity expansion and transformation in the current period
Cash paid for dividend distribution, profit and interest4,422,451,766.132,632,807,836.0067.97Mainly due to increase in dividend distribution and interest payment on loans
Other cash paid related to financing activities5,497,918,450.2234,075,113.3916,034.70Mainly due to payment of equity transfer of rail transit and liquidation contribution of Trust No.1
Project NameNumber at the end of the current periodProportion of total assets at the end of the current period (%)Number at the end of the previous periodProportion of total assets at the end of the current period (%)Change proportion at the end of the current period compared with the end of theExplanations
previous period (%)
Trading financial assets37,879,166.670.04Arising from new investment
Notes receivable78,553,471.980.08166,046,781.890.19-52.69Due to receipt of acceptance bill
Accounts receivable519,497,846.780.56216,250,199.800.25140.23Mainly due to increase in goods trade in the current period
Receivables financing150,000,016.630.16108,547,434.590.1238.19Bank acceptance bill increased
Contract assets160,875,310.330.17Arising from implementation of new income standards
Other current assets3,738,969,498.664.021,207,089,124.631.37209.75Mainly due to transfer of equity investment in Evergrande Project and withdrawal from Qingdao Wudaokou New Energy Vehicle Project
Other non-current financial assets599,602,448.110.655,667,934,389.216.44-89.42Mainly due to disposal of the equity investment of Evergrande Real Estate Group Co., Ltd.
Construction in process8,480,761,085.919.132,530,414,811.072.87235.15Mainly due to expenditure of Beijing-Taibei Expressway reconstruction and expansion project
Short-term loans2,861,018,522.063.08568,567,899.410.65403.20Mainly due to increase in loan for capital turnover
Notes payable276,072,829.090.3033,211,430.370.04731.26Mainly due to increase in bill settlement business
Advance receipt69,254,472.770.07233,063,704.000.26-70.29Mainly due to income carried forward
Contract liabilities118,774,829.030.13Arising from implementation of new income standards
Other payables3,484,301,888.143.752,660,600,796.253.0230.96Increase in receivables from and payables to related parties
Other non-current liabilities due within one year3,692,845,879.293.972,675,588,903.133.0438.02Mainly due to long-term loan due within one year
Deferred Income1,593,513,850.061.711,209,465,555.561.3731.75Mainly due to increase in government subsidies received
Other equity instrument3,200,000,000.003.442,000,000,000.002.2760.00Mainly due to issuance of perpetual bonds
Capital reserves1,748,100,650.091.884,836,763,252.705.49-63.86Mainly caused by merger of Shandong High-speed Rail Transit Group Co., Ltd. under the same control.
Other comprehensive income-47,382,900.51-0.059,953,082.580.01-576.06Mainly due to change in other comprehensive income of affiliated enterprises
ItemYear-end book valueRestriction reason
Monetary funds71,537,681.93frozen amount due to litigation, security deposit
Intangible assets30,790,608,704.29Pledge borrowing
Intangible assets262,560,662.30Mortgage loan
Fixed assets21,892,958.90Mortgage loan
Receivables financing57,000,000.00Pledged

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

NamePrimary serviceProportion of shareholdingPartnerDescription
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 AConstruction, infrastructure operation management and engineering technology research, planning and design, supervision consulting services9.68%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.
ItemApproval Budget EstimateActual progress of the ProjectInput Amount in 2020Accumulated Actual Input AmountNote
Reconstruction and Expansion Project of Beijing-Taibei Expressway (Dezhou-Qihe Section)1,190,433.3552%381000.00619112.00As 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)657312.876.98%45889.0045889.00The 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.
Total1,847,746.22/426889.00665001.00

Second, in terms of capital operation, the major project investment details are as follows:

Unit: Ten thousand yuan Currency: CNY

S/NProject NameTotal Project InvestmentProposed Investment of the CompanyInput Amount in 2020Balance of Input Amount of the CompanyDescription
1The 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)57000050000050000
2Jinan Changying Transportation Infrastructure Investment Fund Partnership338128760001000076000
3Qingdao Changying Jinpeng Equity Investment Partnership (Limited Partnership)140100140000-16500123064
4Jinan Changying Jincheng Equity Investment Partnership (Limited Partnership)501001501000-151000350000
5Jinan Changying Jin'an Investment Partnership (Limited Partnership)249910249900-2456080The 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.
6Jinan Changying Jinhai Investment Partnership (Limited Partnership)420250420240211401.943211401.943See 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
7Weifang Shangao new and old energy conversion investment partnership (limited partnership)230001150000-45000105000
8Shandong Hi-Speed and Chengtay New Growth Driver Venture Capital fund of Shandong Province50000200002030.582030.58
9Jinan Jinming Investment Partnership (Limited Partnership)6001060000056400
10Shandong Hi-Speed Changying Huitong Equity Investment Fund Partnership (Limited Partnership)490002473800In 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.
11Shandong Hi-Speed Zhongtong New Growth Driver Industrial Investment Fund of Shandong Province (Limited Partnership)5000003450034503450
12Total31084001726378-231225.477977346.523

(3)Financial assets measured at fair value

√ Applicable □ Not applicable

Unit: Ten thousand yuan Currency: CNY

Project NameBeginning balanceEnding balanceCurrent ChangeInfluence Sum to Current Profit
Evergrande Real Estate Group Co., Ltd.500,000.000
Yike Tower Investment Project56,389.3256,389.32
Specific assets support plan for South Cement Company Limited3,570.933,570.93
Specific assets support plan for Chengtay Lease6,833.190
Project of Qingdao Wudaokou New Energy Vehicle Industry Fund100,000.000
Shandong Hi-speed Culture Media Co., Ltd.1,761.471,761.47
Shandong Hi-Speed Greentown Laiwu Xueye Lake Development Co., Ltd.518.290-518.29
Shandong Weilai High Speed Railway Co., Ltd.3,162.683,162.68
Shandong Railway Investment Holding Group Co., Ltd.30,000.0030,000.00
BOCOM Schroders-Champion Rental Asset-Backed Special Plan3,787.92
Receivables financing10,854.7415,000.00
Total713,090.62113,672.32-518.29

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 SubsidiaryNature of BusinessRegistered capitalBusiness ScopeTotal AssetsNet AssetsNet Profits
Hubei Wujing Expressway Development Co., Ltd.Highway management80800.00Road, 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.846752.08281656.263823.02
Shandong Hi-Speed Henan Xuyu Road Co., Ltd.Highway management20000.00Investment in, operation, management and maintenance of expressway construction, and engineering machinery sales and rental.101226.8048206.302464.91
Shandong Lijin Huanghe Highway and Bridge Co., Ltd.Highway management7000.00Road and bridge management and operation17768.1413537.671164.95
Shandong Hi-Speed Investment Development Co., Ltd.Investment and development400000.00General 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 electronic898962.27574234.2818052.30
Name of SubsidiaryNature of BusinessRegistered capitalBusiness ScopeTotal AssetsNet AssetsNet 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 development51000.00Entrusted 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)97799.1460537.241329.57
Shandong Hi-speed Rail Transit Group Co., Ltd.Railway operation255275.50Investment 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 of679862.74371804.4441153.35
Name of SubsidiaryNature of BusinessRegistered capitalBusiness ScopeTotal AssetsNet AssetsNet 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 manufacturing11111.00research 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)91274.1158008.0010773.71

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 dividendNumber 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 yearsProportion of net profit attributable to common shareholders of the listed companies in consolidated
included)statements (%)
202003.8001,828,243,025.662,038,999,018.1389.66
201903.8001,828,243,025.663,043,591,513.3760.07
201802.2101,063,267,654.402,943,890,710.9036.12
Commitment BackgroundCommitment TypeCommitment PartyCommitment ContentCommitment Date and PeriodIs there a performance periodIs the commitment performed strictly
Commitments related to significant assets reorganizationResolution of horizontal competitionShandong 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-Speed2016.9.22YesYes
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 transactionsShandong 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 other2010.11.15, Long-term effectiveYesYes
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 commitmentsProfit Forecast and CompensationShandong 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.2018.07.31YesYes

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 firmShinewing Certified Public Accountants (Special Partnership)
Remuneration of domestic accountant firm678,900
Audit term of domestic accountant firm5
NameRemuneration
Accountant Firm for internal control auditShinewing 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 liabilitiesType of litigatioNot applicablerbitrationBasic profile of litigation (arbitration)Amount of Litigation (Arbitration)Whether such litigation (arbitration) has formed anticipation liabilities and amountsProgress of litigation (arbitration)Outcome of litigation (arbitration) and influence from such outcomeExecution 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 actionsShenzhen 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.68,035.68NoA 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 EventsSearch 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 EventsSearch 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 partiesAffiliation RelationshipType of connected transactionsContent of connected transactionsConnected transaction pricing principlesAffiliate Transaction PriceAffiliate Transaction Amount
Shandong Hi-Speed Engineering Detection Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceSDHS 2020-2022 Highway Technical Condition Inspection and Bridge and Tunnel Health Monitoring Project (including Scientific Research)Public bidding3,884.073,884.07
Shandong Hi-Speed Engineering Detection Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceContract Agreement for SDHS 2020-2022 Highway Technical Condition Inspection and Bridge and Tunnel Health Monitoring (including Scientific Research) Project (Wujing)Public bidding1,641.831,641.83
Shandong Hi-Speed Engineering Detection Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceSpecial 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 ExpresswayPublic bidding287.12287.12
Shandong Hi-Speed Engineering Detection Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceContract 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 bidding537.80537.80
Shandong Hi-Speed Engineering Detection Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceInvestigation and Evaluation of Existing Highway in Reconstruction and Expansion Project of Jinan-Tai'an Section of Beijing-Taibei ExpresswayPublic bidding528.42528.42
Shandong Hi-Speed Engineering Detection Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceConstruction Agreement of Bridge Sensor Construction Project of Jiyuan Jijin Expressway Co., Ltd.Public bidding279.60279.60
Shandong Hi-Speed Engineering Consulting Co., Ltd.Wholly owned subsidiary of the parent companyReceive Labor serviceSupplementary Contract Agreement for Supervision of Special Maintenance Project (2020) of SDHS for 2019-2020Public bidding1,017.401,017.40
Shandong Hi-Speed Qilu Construction Group Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceEPC Contract for Existing Housing Infrastructure Reconstruction and Upgrading Project along Jinan-Qingdao ExpresswayPublic bidding4,315.904,315.90
Shandong Hi-Speed Qilu Construction Group Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceEPC Contract for Existing Housing Infrastructure Reconstruction and Upgrading Project along Jinan-Qingdao ExpresswayPublic bidding3,081.943,081.94
Shandong Hi-Speed InformationControling subsidiariesPurchase goodsSDHS 2020 Mechanical andPublic bidding2,434.482,434.48
Engineering Co., Ltd.of the parent companyElectrical Equipment Purchase Contract (the Joint Stock Company)
Shandong Hi-Speed Information Engineering Co., Ltd.Controling subsidiaries of the parent companyPurchase goodsMechanical and Electrical Equipment Purchase Contract of Deqi Section of Beijing-Taibei ExpresswayPublic bidding10,329.6410,329.64
Shandong Hi-Speed Information Engineering Co., Ltd.Controling subsidiaries of the parent companyPurchase goodsEquipment purchase contract for 2020 electromechanical engineering project of Shandong Hi-SpeedPublic bidding7,179.827,179.82
Shandong Hi-Speed Information Engineering Co., Ltd.Controling subsidiaries of the parent companyPurchase goodsEquipment purchase contract for 2020 electromechanical engineering project of Shandong Hi-Speed (Beijing-Taibei)Public bidding314.75314.75
Shandong Hi-Speed Information Engineering Co., Ltd.Controling subsidiaries of the parent companyPurchase goodsEquipment purchase contract for 2020 electromechanical engineering project of Shandong Hi-Speed (Beijing-Taibei)Public bidding426.12426.12
Shandong Hi-Speed Information Engineering Co., Ltd.Controling subsidiaries of the parent companyPurchase goodsMechanical and Electrical Equipment Purchase Contract for SDHS Project of Canceling Provincial Toll StationsPublic bidding527.63527.63
Shandong Hi-Speed Information Engineering Co., Ltd.Controling subsidiaries of the parent companyPurchase goodsSDHS 2020 Mechanical and Electrical Engineering Project Contract (Equipment Package)Public bidding936.60936.60
Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceSDHS 2020 Minor Repair and Maintenance Project (Xiajin Transportation Management Center) Construction Contract, Construction Safety Production Contract and Construction Integrity ContractPublic bidding2,183.762,183.76
Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceSDHS 2020 Minor Repair and Maintenance Project (Beijing-Taibei Expressway Jinan Transportation Management Center) Construction Contract, Safety ProductionPublic bidding1,765.421,765.42
Contract and Integrity Contract
Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceContract Agreement for SDHS 2020 Minor Repair and Maintenance Project (Linyi Transportation Management Center Section)Public bidding1,099.131,099.13
Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceContract of SDHS 2020 Minor Repair and Maintenance Project (Beijing-Shanghai Line Jinan Transportation Management Center)Public bidding1,980.541,980.54
Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceSDHS 2020 Minor Repair and Maintenance Project (Weifang Transportation Management Center) Construction Contract, Safety Production Contract and Integrity ContractPublic bidding1,191.561,191.56
Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceConstruction contract for 2020 annual routine maintenance project (Weifang-Laiwu Operation Management Center) of Shandong Hi-SpeedPublic bidding1,695.751,695.75
Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceSDHS 2020 Minor Repair and Maintenance Project (Yantai Transportation Management Center) Construction Contract, Safety Production Contract and Integrity ContractPublic bidding1,186.801,186.80
Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceConstruction contract for 2020 annual routine maintenance project (Hengyang-Shaoyang Section in Hunan) of Shandong Hi-SpeedPublic bidding1,077.661,077.66
Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceConstruction and safety contracts for 2020 annual routine maintenance project (Zibo Operation Management Center) of Shandong Hi-SpeedPublic bidding743.13743.13
Shandong Hi-Speed Road &Controling subsidiariesReceive LaborSDHS 2020 Minor Repair andPublic bidding845.32845.32
Bridge Maintenance Co., Ltd.of the parent companyserviceMaintenance Project (Qingdao Transportation Management Center) Construction Contract and Safety Production Contract
Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceSDHS 2020 Minor Repair and Maintenance Project (Heze Transportation Management Center GSFZ He-Guan Section) (Contract Agreement)Public bidding985.79985.79
Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceContract Agreement for SDHS 2020 Minor Repair and Maintenance Project (KG XU-YU Section)Public bidding323.56323.56
Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceContract Agreement for SDHS 2019~2020 Minor Repair and Maintenance Project (KG JI-JIN Section)Public bidding308.72308.72
Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceContract Agreement for SDHS 2020 Minor Repair and Maintenance Project (JTZ XU-BO Section)Public Bidding907.92907.92
Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceContract Agreement for Maintenance and Reinforcement Project of K133+630 Fanjiashan Interchange Main Line Bridge of Heng-Shao ExpresswayPublic bidding977.09977.09
Shandong Hi-Speed Road & Bridge Maintenance Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceMinor Repair and Maintenance ContractPublic bidding576.59576.59
Shandong Provincial Communications Planning and Design Institute Group Co., Ltd.Wholly owned subsidiary of the parent companyReceive Labor serviceTwo-stage Survey and Design Contract for Reconstruction and Expansion Project of Jinan-Tai'an Section of Beijing-Taibei ExpresswayPublic bidding5,445.305,445.30
Shandong Provincial Communications Planning and Design Institute Group Co., Ltd.Wholly owned subsidiary of the parent companyReceive Labor serviceContract for Preparation of Feasibility Study Report and Related Special Report of Reconstruction andPublic bidding737.00737.00
Expansion Project of Qihe-Jinan Section of Beijing-Taibei Expressway
Shandong Luqiao Group Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceGeneral contracting project for design and construction of 2019-2020 special maintenance and repair works of Shandong Hi-Speed - Supplementary agreement (2020)Public bidding48,556.6948,556.69
Shandong Luqiao Group Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceContract for Package I of Housing Construction of Dezhou (Shandong-Hebei Boundary)-Qihe Section Reconstruction and Expansion Project of Beijing-Taibei ExpresswayPublic bidding22,034.7922,034.79
Shandong Luqiao Group Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceSupplementary Contract Agreement for Engineering and Construction of Special Maintenance Project of Shandong Expressway for 2019-2020Public bidding2,234.682,234.68
Shandong Luqiao Group Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceGeneral 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 SectionPublic bidding3,990.873,990.87
Shandong Luqiao Group Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceGeneral contracting project for design and construction of 2019-2020 special maintenance and repair works of Shandong Hi-Speed - Supplementary agreement (2020)Public bidding2,219.002,219.00
Shandong Luqiao Group Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceGeneral 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 bidding5,215.155,215.15
Shandong Luqiao Group Co., Ltd.Controling subsidiaries of the parent companyReceive Labor serviceSupplementary Additional Contract Agreement for Engineering and Construction of Special Maintenance Project (2020) of Shandong Expressway for 2019-2020Public bidding512.64512.64
Total//146,517.98
Details of large sales returnsNone
Explanations of connected transactionsThe 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 EventsSearch 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)
GuarantorRelation between guarantor and listed companiesGuaranteed PartyGuarantee AmountDate of guarantee (date of agreement signing)Starting Date of GuaranteeDue Date of GuaranteeGuarantee TypeWhether the Guarantee Has Been Fulfilled or NotWhether the guarantee is overdueGuarantee amount overdueIs there counter guaranteeWhether guarantee is for affiliatesAffiliation 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 period752,000,000
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 guaranteeNone
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

IndexQuantity and Progress
I. Overall Situation
Where: 1. Funds122
2. Funds converted from materials0.468
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 projects107.468
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 training10
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 students5
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 subsidiaryPollutant discharging itemName of major pollutantsDischarging wayDischarge outlet distributionPollutant discharge standards executedExcessive discharge
Shandong Hi-speed Environmental Technology Co., Ltd.Hanting District Sewage Treatment PlantChemical oxygen demand (COD)Organized and continuousMain water outletClass 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 continuousMain water outletClass 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 continuousMain water outletClass 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 continuousMain water outletClass 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 continuousMain water outletClass 1 Standard A≤15mg/L in Table 1, Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002)None
Total phosphorusOrganized andMain water outletClass 1 Standard A≤0.5mg/L in Table 1, Discharge Standard ofNone
(P)continuousPollutants for Municipal Wastewater Treatment Plant (GB18918-2002)
Animal and vegetable oilOrganized and continuousMain water outletClass 1 Standard A≤1mg/L in Table 1, Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002)None
OilsOrganized and continuousMain water outletClass 1 Standard A≤1mg/L in Table 1, Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002)None
PH valueOrganized and continuousMain water outletClass 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 continuousMain water outletClass 1 Standard A 103 in Table 1, Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002)None
Name of company or subsidiaryPollutant discharging itemName of major pollutantsDischarging wayPollutant discharge standards executedExcessive discharge
Shandong Hi-speed Environmental Technology Co., Ltd.Hanting District Sewage Treatment PlantAmmoniaOrganizedClass 1 Standard 1.0mg/m3 in Table 4, Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002)None
Sulfuretted hydrogen (Hzs)OrganizedClass 1 Standard 0.03mg/m3 in Table 4, Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002)None
Odor concentration (Dimensionless)OrganizedClass 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%)OrganizedClass 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 Period42,420
Total number of common shareholders at the prior month-end before the disclosure date of the annual report43,273
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 report0

Unit: shares

Information of shares held by top ten shareholders
Shareholder Name (full name)Increase/decrease during the Reporting PeriodNumber of shares held at the end of the period(%)Number of shares held with trading limited conditionsPledge or freezing statusProperty of shareholders
Status of sharesQuantities
Shandong Hi-Speed Group Co., Ltd.02,870,656,18859.670Pledged977,000,000State-owned legal person
China Merchants Expressway Network & Technology Holdings Co., Ltd.12,870,034783,613,50716.290NoneOthers
Shandong Hi-Speed Group - China International Capital Corporation Limited – 17 SDHS EB guarantee and trust property specific account0540,970,67111.240NoneOthers
Bosera Funds Management Co., Ltd. - social security fund 16,011 portfolio52,000,02152,000,0211.080NoneOthers
National Social Security Fund 108 Portfolio47,121,60947,121,6090.980NoneOthers
China Merchants Bank Co., Ltd. - Shanghai Stock Exchange dividend traded open-ended index securities investment fund17,830,20027,435,8000.570NoneOthers
Bosera value growth securities investment fund23,337,00223,337,0020.490NoneOthers
Hong Kong Securities Clearing Company Ltd.-12,236,32922,941,3730.480NoneOthers
Industrial and Commercial Bank of China – Bosera researched & selected one-year holding period flexible allocation hybrid securities investment fund21,300,00021,300,0000.440NoneOthers
China Construction Bank Co., Ltd. –14,799,15514,799,1550.310NoneOthers
Penghua value advantage hybrid securities investment fund (LOF)
Information of shares held by top ten shareholders without trading limited conditions
Shareholder NameNumber of marketable shares held without trading limited conditionsType and number of shares
VarietyQuantities
Shandong Hi-Speed Group Co., Ltd.2,870,656,188Common stock (CNY)2,870,656,188
China Merchants Expressway Network & Technology Holdings Co., Ltd.783,613,507Common stock (CNY)783,613,507
Shandong Hi-Speed Group - China International Capital Corporation Limited – 17 SDHS EB guarantee and trust property specific account540,970,671Common stock (CNY)540,970,671
Bosera Funds Management Co., Ltd. - social security fund 16,011 portfolio52,000,021Common stock (CNY)52,000,021
National Social Security Fund 108 Portfolio47,121,609Common stock (CNY)47,121,609
China Merchants Bank Co., Ltd. - Shanghai Stock Exchange dividend traded open-ended index securities investment fund27,435,800Common stock (CNY)27,435,800
Bosera value growth securities investment fund23,337,002Common stock (CNY)23,337,002
Hong Kong Securities Clearing Company Ltd.22,941,373Common stock (CNY)22,941,373
Industrial and Commercial Bank of China – Bosera researched & selected one-year holding period flexible allocation hybrid securities investment fund21,300,000Common stock (CNY)21,300,000
China Construction Bank Co., Ltd. – Penghua value advantage hybrid securities investment fund (LOF)14,799,155Common stock (CNY)14,799,155
Descriptions for related relationship or acting in concert of shareholdersThe 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 heldNone

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

NameShandong Hi-Speed Group Co., Ltd.
Person in charge or legal representativeZou Qingzhong
Date of establishmentJuly 2, 1997
Main businessConstruction, 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 periodAs 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 situationsNone

√ 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 CouncilShandong 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 shareholderPerson in charge or legal representativeDate of establishmentOrganization codeRegistered capitalMain business or management activities, etc
China Merchants Expressway Network & Technology Holdings Co., Ltd.Wang Xiufeng12/18/199391110000101717000C6,178,217,338Investment, 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)
ExplanationsNone

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

NamePosition (Note)GenderAgeStart date of the service termEnd of termNumber of shares held at the beginning of the yearNumber of shares held at the end of the yearShares increased or decreased during the yearReasons for increase or decreaseTotal pretax remuneration received from the company in the reporting period (10,000 yuan)Is there any remuneration from related parties of the company?
Sai ZhiyiChairmanMale51May 11, 2020May 10, 2023000-0.00Yes
Han DaojunDeputy DirectorMale58May 11, 2020May 10, 202300010.00Yes
Lv SizhongVice chairman and general managerMale56May 11, 2020May 10, 202300098.53No
Zhang XiaobingDirectorFemale51May 11, 2020May 10, 202300077.22No
Meng JieDirectorMale43May 11, 2020May 10, 202300010.00Yes
Liang ZhanhaiDirectorMale53May 11, 2020May 10, 20230000.00Yes
Sui RongchangDirectors and secretary of board of directorsMale46May 11, 2020May 10, 202300076.54No
Fan YuejinIndependent DirectorMale62May 11, 2020May 10, 202300010.00No
Liu JianwenIndependent DirectorMale61May 11, 2020May 10, 202300010.00No
Wei JianIndependent DirectorMale52May 11, 2020May 10, 202300010.00No
Wang HuiIndependent DirectorMale50May 11, 2020May 10, 202300010.00No
Yin JijunChairman of the board of supervisorsMale55January 22, 2021May 10, 202300084.26No
Yin JijunSupervisorMale55May 11, 2020May 10, 20230000.00No
Liu JingweiSupervisorMale30May 11, 2020May 10, 202300010.00Yes
Lin LeqingSupervisorMale57May 11, 2020May 10, 202300010.00No
Chen FangEmployee SupervisorFemale39March 4, 2020May 10, 202300054.73No
Zhu YuqiangEmployee SupervisorMale42March 4, 2020May 10, 202300027.68No
Zhang JunDeputy General ManagerMale48May 11, 2020May 10, 202300077.43No
Kang JianDeputy General ManagerMale51May 11, 2020May 10, 202300066.29No
Chang ZhihongDeputy General ManagerMale46May 11, 2020May 10, 202300069.03No
Hou FujinDeputy General ManagerMale47May 11, 2020May 10, 202300032.32No
Sun JiarongChief engineerMale57May 11, 2020May 10, 202300081.23No
Zhou LiangChief accountantMale49May 11, 2020May 10, 202300072.85No
Li HangDirectorMale50December 26, 2016May 11, 20200000.00Yes
Yin JijunDirectorMale55December 26, 2016May 11, 20200000.00No
Wei ShirongIndependent DirectorMale56December 26, 2016May 11, 20200000.00No
Wang FengIndependent DirectorFemale47December 26, 2016May 11, 20200000.00No
Luo ChuliangChairman of the board of supervisorsMale58December 26, 2016May 11, 202000094.58No
Sun XuSupervisorMale34December 26, 2016May 11, 20200000.00Yes
Zhang YirenEmployee SupervisorMale61December 26, 2016March 4, 202000024.80No
Wang XiaoleiEmployee SupervisorFemale41December 26, 2016March 4, 202000073.13No
Sun JiarongDeputy General ManagerMale57December 26, 2016April 1, 20200000.00No
Zhang XiaobingDeputy General ManagerFemale51December 26, 2016April 2, 20200000.00No
Total/////000/1,090.62/
NameMain working experiences
Sai ZhiyiFrom 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 DaojunFrom 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 SizhongFrom 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 XiaobingFrom 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 JieFrom 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 ZhanhaiFrom 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 RongchangFrom 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 YuejinHe 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 JianwenFrom 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 JianFrom 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 HuiFrom 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 JijunFrom 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 JingweiFrom 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 LeqingAt 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 FangFrom 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 YuqiangFrom 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 JunHe 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 JianFrom 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 ZhihongFrom 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 FujinHe 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 JiarongFrom 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 LiangFrom 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 HangFrom 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 ShirongAt 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 FengHe 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 ChuliangFrom 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 XuFrom 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 YirenFrom 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 XiaoleiFrom 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

NameTitleNumber of stock options held at the beginning of the yearNumber of new stock options granted during the reporting periodExercisable shares during the reporting periodStock option exercise shares during the reporting periodStock option exercise price (RMB)Number of stock options held at the end of the periodMarket price at the end of the reporting period (RMB)
Sai ZhiyiChairman07400-00
Lv SizhongVice chairman and general manager07400-00
Zhang XiaobingDirector05900-00
Sui RongchangDirectors and secretary of board of directors05900-00
Zhang JunDeputy General Manager05900-00
Kang JianDeputy General Manager05900-00
Chang ZhihongDeputy General Manager05900-00
Hou FujinDeputy General Manager05900-00
Sun JiarongChief engineer05900-00
Zhou LiangChief accountant05900-00
Total/062000/0/
Name of employeeName of shareholder companyPosition held in the shareholder's company
Sai ZhiyiShandong Hi-Speed Group Co., Ltd.Executive director
Han DaojunChina Merchants Expressway Network & Technology Holdings Co., Ltd.Senior Consultant
Meng JieChina Merchants Expressway Network & Technology Holdings Co., Ltd.Chief Analyst and General Manager of Capital Operation Department (Board Office)
Liang ZhanhaiShandong Hi-Speed Group Co., Ltd.Minister of Planning and Finance
Liu JingweiChina Merchants Expressway Network & Technology Holdings Co., Ltd.Manager of Capital Operation Department (Board Office)
Li HangShandong Hi-Speed Group Co., Ltd.CPC Committee member, Deputy General Manager
Description of employment in the shareholder's companyNone
Name of employeeName of other companiesPosition held in the other company
Han DaojunGuangxi Wuzhou Communications Co., LtdDeputy Director
Han DaojunChongqing Chengyu Expressway Co., LtdDeputy Director
Han DaojunChongqing Communications Research and Design Institute Co., Ltd. of China MerchantsDirector
Han DaojunTraffic Information Technology Co., Ltd of China MerchantsDirector
Han DaojunXinzhi Technology Co., Ltd of China MerchantsDirector
Han DaojunChina Highway SocietyExecutive Director, Deputy Secretary General
Meng JieHenan Zhongyuan Expressway Co., LtdDirector
Meng JieJiangsu Ningjingyan Expressway Co., LtdDirector
Meng JieHeilongjiang Transportation Development Co., LtdDirector
Meng JieHyundai Investment Co., LtdDirector
Liang ZhanhaiShandong Hi-Speed Group (Hong Kong) Co., LtdDirector
Liang ZhanhaiChina Shandong Hi-speed Financial Group LimitedNon-executive Director
Fan YuejinQingdao UniversityConsultant, Honorary Director of the Council
Liu JianwenBeijing UniversityProfessor of Law School, doctoral supervisor of economic law major
Liu JianwenLiaoning UniversityDistinguished Professor
Liu JianwenYangtze River Scholars Award ProgramDistinguished Professor
Wei JianZhongtai Securities and Finance Research Institute of Shandong UniversityProfessor and doctoral supervisor of Zhongtai Securities and Finance Research Institute of Shandong University, New Century Excellent Talents of the Ministry of Education
Wei JianJournal of Shandong University (ZS Edition)Editor in chief
Wang HuiHexin Certified Public Accountants (LLP)Chief partner
Wang HuiShandong Institute of Certified Public AccountantsVice President
Wang HuiProfessional Steering Committee of China Institute of Certified Public AccountantsCommittee member
Yin JijunDirector of Weihai Commercial Bank Co., Ltd.Director
Liu JingweiHenan Zhongyuan Expressway Co., LtdSupervisor
Liu JingweiHyundai Investment Co., LtdSupervisor
Lin LeqingLi'anda Certified Public Accountants Co., LtdCertified public accountant
Zhou LiangShandong Hi-Speed Road Development Co., Ltd.Director
Zhou LiangDongxing Securities Co., Ltd.Director
Zhou LiangShandong Hi-Speed Changying Equity Investment Management Co., Ltd.Director
Zhou LiangShandong Hi-Speed Sulianyun Technology Co., Ltd.Director
Zhou LiangShandong Hi-speed Property Service Development Group Co., Ltd.Director
Li HangWeihai City Commercial BankDirector
Wei ShirongBeijing Dacheng Law FirmSenior partner, member of capital markets professional committee, member of financial professional committee
Wei ShirongDacheng DENTONS International Law FirmLeader of Global and China transportation and infrastructure industry Group
Wei ShirongNational Development and Reform CommissionPPP expert database legal expert
Wang FengZhongshen Zhonghuan Certified Public Accountants (special general partnership)Partner
Wang FengBeijing Institute of Certified Public AccountantsProfessional Technology and Continuing Education Committee
Sun XuTibet China Merchants Communications and Construction Electronic Information Co., LtdFinancial Director and Financial Manager
Wang XiaoleiShandong Lijin Huanghe Highway and Bridge Co., Ltd.Chairman of the board of supervisors
Wang XiaoleiHubei Wujing Expressway Development Co., LtdSupervisor
Description of employment in other companiesNone
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 managersSee " (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 periodSee " (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.
NameTitleVariation conditionVariable causes
Li HangDirectorResignBecause of work
Yin JijunDirectorResignBecause of work
Wei ShirongIndependent DirectorResignBecause of work
Wang FengIndependent DirectorResignBecause of work
Luo ChuliangSupervisor, Chairman of the Board of SupervisorsResignBecause of work
Sun XuSupervisorResignBecause of work
Zhang YirenEmployee SupervisorResignBecause of work
Wang XiaoleiEmployee SupervisorResignBecause of work
Sun JiarongDeputy General ManagerResignBecause of work
Zhang XiaobingDeputy General ManagerResignBecause of work
Liang ZhanhaiDirectorElectionBecause of work
Zhang XiaobingDirectorElectionBecause of work
Sui RongchangDirectorElectionBecause of work
Fan YuejinIndependent DirectorElectionBecause of work
Wang HuiIndependent DirectorElectionBecause of work
Chen FangEmployee SupervisorElectionBecause of work
Zhu YuqiangEmployee SupervisorElectionBecause of work
Liu JingweiSupervisorElectionBecause of work
Yin JijunChairman of the board of supervisorsElectionBecause of work
Hou FujinDeputy General ManagerEmploymentBecause of work

VI. Employees of the parent company and major subsidiaries.(I) Condition of employee

Number of active employees in the parent company5,024
Number of active employees in the major subsidiaries1,040
Total number of active employees6,064
Number of retired employees whose salary need to be borne by the parent company and major subsidiaries654
Composition of the discipline
Category of discipline compositionNumber of professionals
Production personnel4,376
Salesman16
Technical staff956
Financial personnel95
Administrative staff621
Total6,064
Education level
Education level categoryNumber (Person)
Graduate student447
Bachelor’s Degree3,139
Junior college education1,873
Under junior college605
Total6,064

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 MeetingDate of the MeetingSearch Index of the Website Designated for Resolution PublishingResolution Disclosure Date
The first extraordinary general meeting of shareholders in 20205/11/2020www.sse.com.cn5/12/2020
The second extraordinary general meeting of shareholders in 20206/13/2020www.sse.com.cn6/15/2020
Annual general meeting of 20196/23/2020www.sse.com.cn6/24/2020
The third extraordinary general meeting of shareholders in 202011/21/2020www.sse.com.cn11/23/2020
Name of the directorThe independent director or notParticipation in the board of directorParticipation in the general meeting of shareholders
Times to attend the board of directors inAttendance times in personTimes to attend the meeting by means of communicationTimes of authorized attendanceTimes of absenceWhether absence from meeting inTimes to attend the general meeting of
this yearperson for two consecutive times?shareholders
Sai ZhiyiNo18181600No4
Han DaojunNo18181800No0
Lv SizhongNo18181600No3
Zhang XiaobingNo16161400No3
Meng JieNo18181800No0
Liang ZhanhaiNo16161600No2
Sui RongchangNo16161400No4
Fan YuejinYes16161600No0
Liu JianwenYes18181800No0
Wei JianYes18181800No1
Wang HuiYes16161600No0
Li HangNo22200No0
Yin JijunNo22200No1
Wei ShirongYes22200No0
Wang FengYes22200No0
Number of board meetings held within the year18
Including: number of on-site meetings0
Number of meetings held by means of communication16
Number of meetings held on site in combination with the means of communication2

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, ChinaMarch 29, 2012

Consolidated assets and liabilities.

December 31, 2020Prepared by: Shandong Hi-Speed Co., Ltd

Unit: yuan Currency: CNY

ItemNote(s)December 31, 2020December 31, 2019
Current assets:VII·1
Monetary funds2,260,788,437.971,816,616,192.72
Deposit reservation for balance
Funds lent
Trading financial assetsVII. 237,879,166.67
Derivative financial assets
Notes receivableVII. 478,553,471.98166,046,781.89
Accounts receivableVII. 5519,497,846.78216,250,199.80
Receivables financingVII. 6150,000,016.63108,547,434.59
Advanced paymentVII. 7146,619,294.26181,264,318.42
Premiums receivable
Reinsurance accounts receivable
Reserves for reinsurance contract receivable
Other receivablesVII. 84,250,510,895.175,363,935,525.48
Including: Interest receivable
Dividends receivableVII. 875,037,985.75524,516,294.16
Redemptory monetary capital for sale
StockVII. 91,390,381,878.591,914,874,948.39
Contract assetsVII. 10160,875,310.33
Held-for-sale assets
Non-current assets due within one yearVII. 12113,246,088.6788,000,000.00
Other current assetsVII. 133,738,969,498.661,207,089,124.63
Total Current Assets12,847,321,905.7111,062,624,525.92
Non-current assets:
Disbursement of loans and advances
Debt investmentVII. 142,614,476,734.722,288,507,600.00
Other investment on bonds
Long-term receivables
Long-term equity investmentsVII. 1712,932,861,522.5210,876,650,896.87
Other equity instrument investmentVII. 18349,241,523.36354,424,450.19
Other non-current financial assetsVII. 19599,602,448.115,667,934,389.21
Investment real estatesVII. 20724,395,942.56755,113,614.14
Fixed assetsVII. 219,267,680,678.569,609,521,167.21
Construction in processVII. 228,480,761,085.912,530,414,811.07
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assetsVII. 2642,655,730,883.2542,329,746,220.35
Development expenditure
Goodwill
Long-term deferred expensesVII. 295,708,133.988,123,554.12
Deferred income tax assetsVII. 30679,621,876.20616,223,885.62
Other non-current assetsVII. 311,759,900,789.041,923,575,663.99
Total non-current assets80,069,981,618.2176,960,236,252.77
Total assets92,917,303,523.9288,022,860,778.69
Current liabilities:
Short-term loansVII. 322,861,018,522.06568,567,899.41
Borrowing from the central bank
Loans from other banks and other financial institutions
Trading financial liabilities
Derivative financial liabilities
Notes payableVII. 35276,072,829.0933,211,430.37
Accounts payableVII. 364,667,741,873.745,020,997,647.35
Advance receiptVII. 3769,254,472.77233,063,704.00
Contract liabilitiesVII. 38118,774,829.03
Financial assets sold for repurchase
Receipt of deposits and deposits from other banks
Funds received as agent of stock exchange
Acting underwriting securities
Payroll payableVII. 39104,928,898.0590,270,532.45
Taxes payableVII. 40573,896,178.54796,192,749.13
Other payablesVII. 413,484,301,888.142,660,600,796.25
Where: Interest payable
Dividends payableVII. 4160,885,896.2525,917,525.46
Handling charges and commissions payable
Cession insurance premiums payable
Liabilities held for sale
Other non-current liabilities due within one yearVII. 433,692,845,879.292,675,588,903.13
Other current liabilitiesVII. 442,529,825,261.702,514,549,315.05
Total current liabilities18,378,660,632.4114,593,042,977.14
Non-current liabilities
Reserve funds for insurance contracts
Long-term LoansVII. 4534,977,981,637.8533,314,036,294.39
Bonds payable
Including: preferred stocks
Perpetual debt
Lease liabilities
Long-term payableVII. 48307,170,000.00307,170,000.00
Long-term payroll payableVII. 49214,288,788.88226,850,277.65
Estimated liabilitiesVII. 50109,118,519.8889,261,686.31
Deferred IncomeVII. 511,593,513,850.061,209,465,555.56
Deferred income tax liabilitiesVII. 301,041,909,470.20908,782,748.28
Other non-current liabilities
Total non-current liabilities38,243,982,266.8736,055,566,562.19
Total liabilities56,622,642,899.2850,648,609,539.33
Owners’ equity (or shareholders’ equity)
Paid-in capital (or capital stock)VII. 534,811,165,857.004,811,165,857.00
Other equity instrumentVII. 543,200,000,000.002,000,000,000.00
Including: preferred stocks
Perpetual debt3,200,000,000.002,000,000,000.00
Capital reservesVII. 551,748,100,650.094,836,763,252.70
Minus: treasury stocks
Other comprehensive incomeVII. 57-47,382,900.519,953,082.58
Appropriate reserveVII. 5895,654,456.5582,671,061.69
Surplus reservesVII. 593,388,948,843.133,164,742,776.43
General risk reserves
Adjustment of the undistributed profitsVII. 6018,254,274,865.2118,370,546,470.80
Total owner’s equities (or shareholders' equity) attributable to parent company31,450,761,771.4733,275,842,501.20
Minority equity4,843,898,853.174,098,408,738.16
Total owner’s equities (shareholder’s equities)36,294,660,624.6437,374,251,239.36
Total for Liabilities and Owners’ Equity (or Shareholders’ Equity)92,917,303,523.9288,022,860,778.69
Legal representative: Sai ZhiyiPerson in charge of accounting work: Lv SizhongChief accountant: Zhou LiangPerson 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

ItemNote(s)December 31, 2020December 31, 2019
Current assets:
Monetary funds928,288,455.53870,975,280.55
Trading financial assets
Derivative financial assets
Notes receivable33,981,915.06
Accounts receivable
Receivables financing
Advanced payment11,237,709.4111,562,276.40
Other receivablesXVII ·26,219,568,039.824,489,749,765.83
Including: Interest receivable
Dividends receivable75,037,985.75
Stock
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets1,330.7041,864.44
Total Current Assets7,193,077,450.525,372,329,187.22
Non-current assets:
Debt investment1,050,000,000.001,500,000,000.00
Other investment on bonds
Long-term receivables
Long-term equity investmentsXVII ·422,198,322,722.6222,084,563,217.73
Other equity instrument investment17,614,686.3617,614,686.36
Other non-current financial assets
Investment real estates99,593,869.59103,347,729.63
Fixed assets5,847,333,014.155,944,035,071.13
Construction in process6,609,958,928.501,523,216,463.56
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets26,031,443,072.0726,139,356,460.31
Development expenditure
Goodwill
Long-term deferred expenses2,255,539.591,499,423.29
Deferred income tax assets553,019,757.44571,492,951.37
Other non-current assets1,691,331,534.502,707,210,551.70
Total non-current assets64,100,873,124.8260,592,336,555.08
Total assets71,293,950,575.3465,964,665,742.30
Current liabilities:
Short-term loans2,713,985,295.673,404,762,465.75
Trading financial liabilities
Derivative financial liabilities
Notes payable241,800,000.00
Accounts payable3,827,021,730.094,299,771,896.22
Advance receipt34,980,345.86
Contract liabilities
Payroll payable4,191,355.633,081,586.76
Taxes payable329,613,826.45514,166,694.40
Other payables2,644,367,755.201,427,028,921.60
Where: Interest payable
Dividends payable17,677,077.63
Liabilities held for sale
Other non-current liabilities due within one year2,624,567,516.601,971,942,633.55
Other current liabilities2,515,141,657.312,514,549,315.05
Total current liabilities14,900,689,136.9514,170,283,859.19
Non-current liabilities
Long-term Loans25,655,628,195.9623,264,718,125.26
Bonds payable
Including: preferred stocks
Perpetual debt
Lease liabilities
Long-term payable294,000,000.00294,000,000.00
Long-term payroll payable111,690,956.40125,852,148.97
Estimated liabilities
Deferred Income708,624,257.65301,639,375.00
Deferred income tax liabilities165,146,292.7766,701,454.09
Other non-current liabilities
Total non-current liabilities26,935,089,702.7824,052,911,103.32
Total liabilities41,835,778,839.7338,223,194,962.51
Owners’ equity (or shareholders’ equity)
Paid-in capital (or capital stock)4,811,165,857.004,811,165,857.00
Other equity instrument3,200,000,000.00
Including: preferred stocks
Perpetual debt3,200,000,000.00
Capital reserves1,902,762,862.203,723,794,637.56
Minus: treasury stocks
Other comprehensive income-48,454,749.949,953,082.58
Appropriate reserve
Surplus reserves3,360,606,953.463,136,400,886.76
Undistributed profits16,232,090,812.8916,060,156,315.89
Total owner’s equities (shareholder’s equities)29,458,171,735.6127,741,470,779.79
Total for Liabilities and Owners’ Equity (or Shareholders’ Equity)71,293,950,575.3465,964,665,742.30
Legal representative: Sai ZhiyiPerson in charge of accounting work: Lv SizhongChief accountant: Zhou LiangPerson in charge of accounting agency: Chen Fang
ItemNote(s)20202019
I. Total operating incomesVII. 6111,365,164,781.1510,414,550,126.20
Including: operating incomesVII. 6111,365,164,781.1510,414,550,126.20
Interest income
Premiums earned
Handling charges and commissions incomes
II. Total operating costs9,863,958,892.097,625,184,524.90
Including: operating costsVII. 617,560,477,000.275,764,173,616.16
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 surchargesVII. 6279,170,333.0282,699,807.08
Selling expensesVII. 6310,629,082.6416,982,565.44
Management expensesVII. 64537,241,518.01578,995,480.68
Research and development (R&D) expensesVII. 6567,632,819.1740,248,725.26
Financial expensesVII. 661,608,808,138.981,142,084,330.28
Where Interest expense1,701,838,542.171,436,760,372.33
Interest income93,867,234.96297,069,626.74
Plus: Other incomeVII. 6762,271,278.2734,950,601.38
Investment income (losses are shown with a “-” sign)VII. 681,472,376,254.321,557,019,189.35
Including: investment incomes from associated enterprises and joint ventures570,339,660.39376,523,816.81
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)-38,010,697.87104,886,552.70
Impairment loss on assets (losses are shown with a “-” sign)-69,698,486.83737,101.08
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)2,930,036,754.924,488,306,696.24
Plus: non-operating incomes111,132,022.4689,085,844.38
Minus: non-operating expenses56,302,967.80167,266,284.34
IV. Total Profit (total loss is shown with a “-” sign)2,984,865,809.584,410,126,256.28
Minus: income tax expenses845,430,409.731,198,946,988.11
V. Net Profit (net loss is shown with a “-” sign)2,139,435,399.853,211,179,268.17
(I) Classified by continuity of operation
1. Net profit from continuing operations (net loss is shown with a “-” sign)2,139,435,399.853,211,179,268.17
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)2,038,999,018.133,126,071,417.08
2. Minority interests' gains and losses (net loss is shown by "_")100,436,381.7285,107,851.09
VI. After-tax net amount of other comprehensive income-57,335,983.092,629,965.89
(I) After-tax net amount of other comprehensive incomes attributable to owners of the parent company-57,335,983.092,874,964.78
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-52,153,056.262,874,964.78
(1) Other comprehensive income that can be-52,153,056.262,874,964.78
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 income2,082,099,416.763,213,809,234.06
(I) Total comprehensive income attributable to owners of the parent company1,981,663,035.043,128,946,381.86
(II) Total comprehensive income attributable to minority shareholders100,436,381.7284,862,852.20
VIII. Earnings per share:
(I). Basic earnings per share (yuan/share)0.400.65
(II). Diluted earnings per share (yuan/share)0.400.65
Legal representative: Sai ZhiyiPerson in charge of accounting work: Lv SizhongChief accountant: Zhou LiangPerson in charge of accounting agency: Chen Fang
ItemNote(s)20202019
I. Operating incomesXVII ·55,433,545,542.195,416,671,096.24
Minus: operating costsXVII ·53,126,521,536.402,569,697,067.29
Taxes and surcharges36,609,615.3837,383,537.96
Selling expenses
Management expenses156,474,259.74183,623,488.52
Research and development (R&D) expenses22,209,698.345,163,715.62
Financial expenses1,174,143,153.73519,346,130.99
Where Interest expense1,377,206,551.03882,160,313.72
Interest income203,183,301.97364,592,835.22
Plus: Other income32,034,600.35457,500.00
Investment income (losses are shown with a “-” sign)XVII ·61,889,609,968.461,386,335,979.72
Including: investment incomes from associated enterprises and joint ventures407,748,201.80309,238,743.35
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)-3,211,349.7422,671,633.53
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)2,836,020,497.673,510,922,269.11
Plus: non-operating incomes61,070,052.1043,228,662.71
Minus: non-operating expenses39,081,928.51147,089,768.88
III. Total profit (the total loss is shown with a “-” sign)2,858,008,621.263,407,061,162.94
Minus: income tax expenses615,947,954.27687,540,776.47
IV. Net profit (net loss is shown with a “-” sign)2,242,060,666.992,719,520,386.47
(i) Net income from continuing operations (net loss is shown with a “-” sign)2,242,060,666.992,719,520,386.47
(ii) Net profit from discontinued operations (net loss is shown with a “-” sign)
V. After-tax net amount other comprehensive income-58,407,832.523,129,963.63
(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-58,407,832.523,129,963.63
1. Other comprehensive income that can be included in profit or loss under the equity method.-58,407,832.523,129,963.63
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 income2,183,652,834.472,722,650,350.10
VII. Earnings per share:
(I). Basic earnings per share (yuan/share)
(II). Diluted earnings per share (yuan/share)
Legal representative: Sai ZhiyiPerson in charge of accounting work: Lv SizhongChief accountant: Zhou LiangPerson in charge of accounting agency: Chen Fang
ItemNote(s)20202019
I. Net cash flow from operating activities
Cash received from selling goods and providing services11,670,481,701.6413,707,673,725.71
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 activitiesVII. 782,511,287,458.562,130,113,130.72
Subtotal of cash inflows from business activities14,181,769,160.2015,837,786,856.43
Cash paid for purchased commodities and accepted services6,376,558,265.494,745,474,004.64
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 staff1,626,236,935.311,544,782,530.12
Tax payments1,433,170,290.251,602,337,342.05
Other cash paid related to operating activitiesVII. 78436,716,594.371,481,600,879.55
Subtotal of cash outflows from business activities9,872,682,085.429,374,194,756.36
Net cash flow from operating activities4,309,087,074.786,463,592,100.07
II. Net cash flow from investment activities
Cash received from disposal of investment2,782,299,872.932,385,211,237.16
Cash received from investment incomes1,888,574,853.171,038,478,559.42
Net cash received from disposal of fixed assets, intangible assets and other long-term assets5,999,826.932,961,505.56
Net cash received from disposal of subsidiaries and other business entities312,672,429.53
Other cash received related to investment activitiesVII. 78868,998,592.11533,681,928.19
Subtotal of cash inflows from investment activities5,545,873,145.144,273,005,659.86
Cash paid for acquisition and construction of fixed assets, intangible assets and other long-term assets6,594,615,778.919,721,032,984.36
Cash paid for investment3,591,409,587.654,544,862,444.19
Net increase in pledged loans
Net cash paid for acquisition of subsidiaries and other business entities808,945.02
Other cash paid related to investment activitiesVII. 7810,841,593.13
Subtotal of cash outflows from investment activities10,197,675,904.7114,265,895,428.55
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 investment4,815,294,000.002,020,320,900.00
Including: cash received from investment attraction of subsidiaries from minority shareholders615,294,000.0020,320,900.00
Cash received from debts23,198,074,799.8725,865,711,475.86
Other cash received related to financing activitiesVII. 78600,000,000.0023,611,355.51
Subtotal of cash inflows from financing activities28,613,368,799.8727,909,643,731.37
Cash paid for settlement of debts17,930,375,199.7821,628,955,209.32
Cash paid for dividend distribution, profit and interest4,422,451,766.132,632,807,836.00
Including: dividends and profits paid to minority shareholders by subsidiaries559,976,355.4050,825,000.00
Other cash paid related to financing activitiesVII. 785,497,918,450.2234,075,113.39
Subtotal of cash outflows from financial activities27,850,745,416.1324,295,838,158.71
Net cash flow from financing activities762,623,383.743,613,805,572.66
IV. Effect of exchange rate fluctuations on cash and cash equivalents
V. Net increase in cash and cash equivalents419,907,698.9584,507,904.04
Plus: beginning balance of cash and cash equivalents1,769,343,057.091,684,835,153.05
VI. Balance of ending cash and cash equivalents2,189,250,756.041,769,343,057.09
Legal representative: Sai ZhiyiPerson in charge of accounting work: Lv SizhongChief accountant: Zhou LiangPerson in charge of accounting agency: Chen Fang

Cash Flow Statement of Parent Company

January to December 2020

Unit: yuan Currency: CNY

ItemNote(s)20202019
I. Net cash flow from operating activities
Cash received from selling goods and providing services5,367,086,927.846,811,167,767.54
Tax refunds received
Cash received from other operating activities1,229,452,532.93744,131,984.57
Subtotal of cash inflows from business activities6,596,539,460.777,555,299,752.11
Cash paid for purchased commodities and accepted services1,000,701,125.19631,960,323.03
Cash paid to and paid for staff1,032,932,183.82942,781,230.42
Tax payments917,646,750.36870,020,104.19
Other cash paid related to operating activities1,450,678,427.20440,791,484.16
Subtotal of cash outflows from business activities4,401,958,486.572,885,553,141.80
Net cash flow from operating activities2,194,580,974.204,669,746,610.31
II. Net cash flow from investment activities
Cash received from disposal of investment5,492,147,931.56886,960,057.16
Cash received from investment incomes1,488,794,222.26924,058,437.87
Net cash received from disposal of fixed assets, intangible assets and other long-term assets2,205,830.27
Net cash received from disposal of subsidiaries and other business entities65,246,799.26
Other cash received related to investment activities311,304.582,100,196,341.45
Subtotal of cash inflows from investment activities6,983,459,288.673,976,461,635.74
Cash paid for acquisition and construction of fixed assets, intangible assets and other long-term assets5,822,609,057.358,180,765,179.00
Cash paid for investment6,243,449,819.423,986,762,409.08
Net cash paid for acquisition of subsidiaries and other business entities
Other cash paid related to investment activities3,442,519.542,544,376,907.03
Subtotal of cash outflows from investment activities12,069,501,396.3114,711,904,495.11
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 investment3,200,000,000.00
Cash received from debts22,653,574,799.8722,829,811,476.86
Other cash received related to financing activities1,000,030,380.25
Subtotal of cash inflows from financing activities26,853,605,180.1222,829,811,476.86
Cash paid for settlement of debts20,162,945,199.7814,841,431,882.32
Cash paid for dividend distribution, profit and interest3,431,221,857.701,970,792,643.48
Other cash paid related to financing activities310,663,814.2234,075,113.39
Subtotal of cash outflows from financial activities23,904,830,871.7016,846,299,639.19
Net cash flow from financing activities2,948,774,308.425,983,511,837.67
IV. Effect of exchange rate fluctuations on cash and cash equivalents
V. Net increase in cash and cash equivalents57,313,174.98-82,184,411.39
Plus: beginning balance of cash and cash equivalents870,975,280.55953,159,691.94
VI. Balance of ending cash and cash equivalents928,288,455.53870,975,280.55
Legal representative: Sai ZhiyiPerson in charge of accounting work: Lv SizhongChief accountant: Zhou LiangPerson in charge of accounting agency: Chen Fang

Consolidated Statement of Changes in Owner’s Equity

January to December 2020

Unit: yuan Currency: CNY

Item2020
Equities attributable to the owners of parent companyMinority equityTotal owner's equity
Paid-in capital (or capital stock)Other equity instrumentCapital reservesMinus: treasury stocksOther comprehensive incomeAppropriate reserveSurplus reservesGeneral risk reservesAdjustment of the undistributed profitsOthersSubtotal
Preference sharesPerpetual debtOthers
Prior year-end balance4,811,165,857.002,000,000,000.004,159,538,082.199,953,082.583,164,742,776.4317,975,791,829.9232,121,191,628.122,266,246,760.7634,387,438,388.88
Plus: changes in accounting policies169,953.90169,953.90163,289.04333,242.94
Corrections of prior period errors
Business consolidation under control677,225,170.5182,671,061.69394,754,640.881,154,650,873.081,832,161,977.402,986,812,850.48
Others
II. Beginning balance of this year4,811,165,857.002,000,000,000.004,836,763,252.709,953,082.5882,671,061.693,164,742,776.4318,370,376,516.9033,275,672,547.304,098,245,449.1237,373,917,996.42
III. Amount of increase or decrease in the current period (decrease is shown with a "-" sign)1,200,000,000.003,088,662,602.6157,335,983.0912,983,394.86224,206,066.70116,101,651.691,824,910,775.83745,653,404.051,079,257,371.78
(I) Total comprehensive income57,335,983.092,038,999,018.131,981,663,035.04100,436,381.722,082,099,416.76
(II) Capital invested and reduced by owners1,200,000,000.003,088,662,602.611,888,662,602.61963,432,124.32925,230,478.29
1. Common shares contributed by owners9,220,036.649,220,036.64753,879,017.90763,099,054.54
2. Capital contributed by the holders of other equity instruments1,200,000,000.001,200,000,000.001,200,000,000.00
3. Amounts of share-based payments recognized in owners’ equity18,429,300.0018,429,300.0018,429,300.00
4. Others3,116,311,939.253,116,311,939.25209,553,106.422,906,758,832.83
(III) Profit distribution224,206,066.702,155,100,669.821,930,894,603.12331,206,564.052,262,101,167.17
1. Withdraw of surplus reserves224,206,066.70224,206,066.70
2. Withdrawn general risk reserve
3. Profits distributed to owners(or shareholders)1,828,243,025.661,828,243,025.66331,206,564.052,159,449,589.71
4. Others102,651,577.46102,651,577.46102,651,577.46
(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 reserves12,983,394.8612,983,394.8612,991,462.0625,974,856.92
1. Amount withdrawn in the current period16,222,137.3016,222,137.3016,953,111.6533,175,248.95
2. Amount used in the current period3,238,742.443,238,742.443,961,649.597,200,392.03
(VI) Others
IV. Ending balance of the current period4,811,165,857.003,200,000,000.001,748,100,650.0947,382,900.5195,654,456.553,388,948,843.1318,254,274,865.2131,450,761,771.474,843,898,853.1736,294,660,624.64
Item2019
Equities attributable to the owners of parent companyMinority equityTotal owner's equity
Paid-in capital (or capital stock)Other equity instrumentCapital reservesMinus: treasury stocksOther comprehensive incomeAppropriate reserveSurplus reservesGeneral risk reservesAdjustment of the undistributed profitsOthersSubtotal
Preference sharesPerpetual debtOthers
I. Balance at the end of the last year4,811,165,857.003,273,636,101.656,823,118.952,892,790,737.7816,276,718,131.1627,261,133,946.542,054,284,178.7929,315,418,125.33
Plus: changes in accounting policies
Corrections of prior period errors
Business consolidation under control677,225,170.51254,998.8565,869,092.33317,793,490.491,061,142,752.181,757,501,359.802,818,644,111.98
Others
II. Beginning balance of this year4,811,165,857.003,950,861,272.167,078,117.8065,869,092.332,892,790,737.7816,594,511,621.6528,322,276,698.723,811,785,538.5932,134,062,237.31
Amount of increase or decrease in the current period (decrease is shown with a "-" sign)2,000,000,000.00885,901,980.542,874,964.7816,801,969.36271,952,038.651,776,034,849.154,953,565,802.48286,623,199.575,240,189,002.05
(I) Total comprehensive income2,874,964.783,126,071,417.083,128,946,381.8684,862,852.203,213,809,234.06
(II) Capital invested and reduced by owners2,000,000,000.00885,901,980.542,885,901,980.54230,664,323.743,116,566,304.28
1. Common shares contributed by owners19,817,127.9219,817,127.92
2. Capital contributed by the holders of other equity instruments2,000,000,000.002,000,000,000.002,000,000,000.00
3. Amounts of share-based payments recognized in owners’ equity
4. Others885,901,980.54885,901,980.54210,847,195.821,096,749,176.36
(III) Profit distribution271,952,038.651,350,036,567.931,078,084,529.2846,127,331.621,124,211,860.90
1. Withdraw of surplus reserves271,952,038.65271,952,038.65
2. Withdrawn general risk reserve
3. Profits distributed to owners(or shareholders)1,068,786,407.721,068,786,407.7246,127,331.621,114,913,739.34
4. Others9,298,121.569,298,121.569,298,121.56
(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 reserves16,801,969.3616,801,969.3617,223,355.2534,025,324.61
1. Amount withdrawn in the current period17,238,342.5317,238,342.5318,062,584.7635,300,927.29
2. Amount used in the current period436,373.17436,373.17839,229.511,275,602.68
(VI) Other
IV. Ending balance of the current period4,811,165,857.002,000,000,000.004,836,763,252.709,953,082.5882,671,061.693,164,742,776.4318,370,546,470.8033,275,842,501.204,098,408,738.1637,374,251,239.36
Legal representative: Sai ZhiyiPerson in charge of accounting work: Lv SizhongChief accountant: Zhou LiangPerson in charge of accounting agency: Chen Fang

Change Statement of Owner’s Equity in Parent Company

January to December 2020

Unit: yuan Currency: CNY

Item2020
Paid-in capital (or share capital)Other equity instrumentCapital reservesMinus: treasury stocksOther comprehensive incomeAppropriate reserveSurplus reservesUndistributed profitsTotal owner's equity
Preference sharesPerpetual debtOthers
I. Balance at the end of the last year4,811,165,857.003,723,794,637.569,953,082.583,136,400,886.7616,060,156,315.8927,741,470,779.79
Plus: changes in accounting policies
Corrections of prior period errors
Others
II. Beginning balance of this year4,811,165,857.003,723,794,637.569,953,082.583,136,400,886.7616,060,156,315.8927,741,470,779.79
III. Increases/decreases in the current period (“-” for decreases)3,200,000,000.001,821,031,775.3658,407,832.52224,206,066.70171,934,497.001,716,700,955.82
(1) Total comprehensive income58,407,832.522,242,060,666.992,183,652,834.47
(2) Capital contributed or reduced by owners3,200,000,000.001,821,031,775.361,378,968,224.64
1. Common shares contributed by owners
2 Capital contributed by the holders of other equity instruments3,200.00 0,000.003,200,000,000.00
3. Amounts of share-based payments recognized in owners’ equity18,429,300.0018,429,300.00
4. Others1,839,461,075.361,839,461,075.36
(III) Profit distribution224,206,066.702,070,126,169.991,845,920,103.29
1. Withdraw of surplus reserves224,206,066.70224,206,066.70
2 Profits distributed to owners(or shareholders)1,828,243,025.661,828,243,025.66
3. Others17,677,077.6317,677,077.63
(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 period4,811,165,857.003,200,000,000.001,902,762,862.2048,454,749.943,360,606,953.4616,232,090,812.8929,458,171,735.61
Item2019
Paid-in capital (or share capital)Other equity instrumentCapital reservesMinus: treasury stocksOther comprehensive incomeAppropriate reserveSurplus reservesUndistributed profitsTotal owner's equity
Preference sharesPerpetual debtOthers
I. Balance at the end of the last year4,811,165,857.003,131,791,139.926,823,118.952,864,448,848.1114,641,518,915.4625,455,747,879.44
Plus: changes in accounting policies
Corrections of prior period errors
Others
II. Beginning balance of this year4,811,165,857.003,131,791,139.926,823,118.952,864,448,848.1114,641,518,915.4625,455,747,879.44
III. Increases/decreases in the current period (“-” for decreases)592,003,497.643,129,963.63271,952,038.651,418,637,400.432,285,722,900.35
(1) Total comprehensive income3,129,963.632,719,520,386.472,722,650,350.10
(2) Capital contributed or reduced by owners592,003,497.6434,336,707.01626,340,204.65
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. Others592,003,497.6434,336,707.01626,340,204.65
(III) Profit distribution271,952,038.651,335,219,693.051,063,267,654.40
1. Withdraw of surplus reserves271,952,038.65271,952,038.65
2. Profits distributed to owners(or shareholders)1,063,267,654.401,063,267,654.40
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 period4,811,165,857.003,723,794,637.569,953,082.583,136,400,886.7616,060,156,315.8927,741,470,779.79
Legal representative: Sai ZhiyiPerson in charge of accounting work: Lv SizhongChief accountant: Zhou LiangPerson 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 SectionRoad SectionsApproved Expiry Date of Toll CollectionToll Mileage (Kilometer)
Jinan-Qingdao ExpresswayJinan-Qingdao Expressway (Section in Shandong of Qingdao-Yinchuan Expressway)December 15, 2044318.50
Relevant sections ofPhase I of Dezhou-Qihe Section ofNovember 17, 202289.03
Beijing-Taibei ExpresswayBeijing-Fuzhou Expressway
Phase II of Dezhou-Qihe Section of Beijing-Fuzhou ExpresswayNovember 30, 20252.25
Jinan Yellow River Second BridgeApril 16, 20325.75
Qihe-Jinan Section of Beijing-Fuzhou ExpresswayOctober 31, 202421.97
Jinan-Qingdao Connection Line of Beijing-Fuzhou ExpresswayOctober 31, 202416.38
Jinan-Tai'an Section of Beijing-Fuzhou ExpresswayOctober 31, 202459.55
Jinan-Laiwu High-speed RailwayJinan-Laiwu Expressway (side road) of Beijing-Shanghai ExpresswayOctober 21, 203476.05
Weifang-Laiyang ExpresswayWeifang-Laiyang ExpresswayJuly 31, 2024140.64
Weihai-Rushan ExpresswayWeihai-Rushan ExpresswayDecember 19, 203270.55
Taiqu section of national highway G104Tai'an-Qufu First-class Highway of State Road G104November 15, 202564.17
Lijin Yellow River BridgeLijin Yellow River BridgeSeptember 25, 20291.35
Xuchang-Yuzhou ExpresswayXuchang-Yuzhou Expressway in HenanAugust 28, 203639.07
Jiyuan-Jincheng ExpresswayJiyuan-Jincheng (Provincial Border) Section of Erenhot-Guangzhou ExpresswaySeptember 9, 203820.56
Hengyang-Shaoyang ExpresswayHeyang-Shaoyang Expressway in HunanDecember 29, 2040132.06
Wuhan-Jingmen ExpresswayWuhan-Jingmen Expressway in HubeiMay 2040183.21

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 combinationBasis to determine the combinations
Related party combinationAll related party customers
Third party combinationAll third parties
AgingExpected 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 years100
Name of combinationBasis to determine the combinations
Related party combinationAll related party customers
Third party combinationAll 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:

AgingExpected 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 years100
ItemBasis to determine the combinations
Related party combinationAll related party customers
Third party combinationAll third parties
Where, the expected credit loss rate of the third-party combination is as follows:
AgingExpected 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 years100

√ 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:

CategoryPeriod of depreciationExpected salvage value rateAnnual depreciation rate
Buildings20-403-52.40-4.85

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

CategoryDepreciation period (year)Ratio of remaining valueAnnual depreciation rate
Road property40-1003-50.95-2.38
Houses and Buildings3-403-52.4-32.3
Mechanical equipment3-253-53.8-32.3
Transport equipment3-153-56.3-32.3
Electronic, electrical and communication equipment3-303-53.2-32.3
Instrumentation and standard measuring instrument3-103-59.5-32.3
Other Equipment3-153-56.3-32.3

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/NCategory of assetsExpected useful life (year)Amortization methodNote
1Land use rights18-40Straight-line method
2Office software5Straight-line method
3Right to use parking space10-30Straight-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 policiesApproval procedureRemarks (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
ItemDecember 31, 2019January 1, 2020Adjustment
Current assets:
Monetary funds1,816,616,192.721,816,616,192.72
Deposit reservation for balance
Funds lent
Trading financial assets
Derivative financial assets
Notes receivable166,046,781.89166,046,781.89
Accounts receivable216,250,199.80216,250,199.80
Receivables financing108,547,434.59108,547,434.59
Advanced payment181,264,318.42181,264,318.42
Premiums receivable
Reinsurance accounts receivable
Reserves for reinsurance contract receivable
Other receivables5,363,935,525.485,363,935,525.48
Including: Interest receivable
Dividends receivable524,516,294.16524,516,294.16
Redemptory monetary capital for sale
Stock1,914,874,948.391,750,858,863.27-164,016,085.12
Contract assets163,571,761.20163,571,761.20
Held-for-sale assets
Non-current assets due within one year88,000,000.0088,000,000.00
Other current assets1,207,089,124.631,207,089,124.63
Total Current Assets11,062,624,525.9211,062,180,202.00-444,323.92
Non-current assets:
Disbursement of loans and advances
Debt investment2,288,507,600.002,288,507,600.00
Other investment on bonds
Long-term receivables
Long-term equity investments10,876,650,896.8710,876,650,896.87
Other equity instrument investment354,424,450.19354,424,450.19
Other non-current financial assets5,667,934,389.215,667,934,389.21
Investment real estates755,113,614.14755,113,614.14
Fixed assets9,609,521,167.219,609,521,167.21
Construction in process2,530,414,811.072,530,414,811.07
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets42,329,746,220.3542,329,746,220.35
Development expenditure
Goodwill
Long-term deferred expenses8,123,554.128,123,554.12
Deferred income tax assets616,223,885.62616,334,966.60111,080.98
Other non-current assets1,923,575,663.991,923,575,663.99
Total non-current assets76,960,236,252.7776,960,347,333.75111,080.98
Total assets88,022,860,778.6988,022,527,535.75-333,242.94
Current liabilities:
Short-term loans568,567,899.41568,567,899.41
Borrowing from the central bank
Loans from other banks and other financial institutions
Trading financial liabilities
Derivative financial liabilities
Notes payable33,211,430.3733,211,430.37
Accounts payable5,020,997,647.355,020,997,647.35
Advance receipt233,063,704.0086,920,719.72-146,142,984.28
Contract liabilities134,948,906.19134,948,906.19
Financial assets sold for repurchase
Receipt of deposits and deposits from other banks
Funds received as agent of stock exchange
Acting underwriting securities
Payroll payable90,270,532.4590,270,532.45
Taxes payable796,192,749.13796,192,749.13
Other payables2,660,600,796.252,660,600,796.25
Where: Interest payable
Dividends payable25,917,525.4625,917,525.46
Handling charges and commissions payable
Cession insurance premiums payable
Liabilities held for sale
Other non-current liabilities due within one year2,675,588,903.132,675,588,903.13
Other current liabilities2,514,549,315.052,525,743,393.1411,194,078.09
Total current liabilities14,593,042,977.1414,593,042,977.14
Non-current liabilities
Reserve funds for insurance contracts
Long-term Loans33,314,036,394.3933,314,036,394.39
Bonds payable
Including: preferred stocks
Perpetual debt
Lease liabilities
Long-term payable307,170,000.00307,170,000.00
Long-term payroll payable226,850,277.65226,850,277.65
Estimated liabilities89,261,686.3189,261,686.31
Deferred Income1,209,465,555.561,209,465,555.56
Deferred income tax liabilities908,782,748.28908,782,748.28
Other non-current liabilities
Total non-current liabilities36,055,566,562.1936,055,566,562.19
Total liabilities50,648,609,539.3350,648,609,539.33
Owners’ equity (or shareholders’ equity)
Paid-in capital (or capital stock)4,811,165,857.004,811,165,857.00
Other equity instrument2,000,000,000.002,000,000,000.00
Including: preferred stocks
Perpetual debt2,000,000,000.002,000,000,000.00
Capital reserves4,836,763,252.704,836,763,252.70
Minus: treasury stocks
Other comprehensive income9,953,082.589,953,082.58
Appropriate reserve82,671,061.6982,671,061.69
Surplus reserves3,164,742,776.433,164,742,776.43
General risk reserves
Adjustment of the undistributed profits18,370,546,470.8018,370,376,516.90-169,953.90
Total owner’s equities (or shareholders' equity) attributable to parent company33,275,842,501.2033,275,672,547.30-169,953.90
Minority equity4,098,408,738.164,098,245,449.12-163,289.04
Total owner’s equities (shareholder’s equities)37,374,251,239.3637,373,917,996.42-333,242.94
Total for Liabilities and Owners’ Equity (or Shareholders’ Equity)88,022,860,778.6988,022,527,535.75-333,242.94
ItemDecember 31, 2019January 1, 2020Adjustment
Current assets:
Monetary funds870,975,280.55870,975,280.55
Trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable
Receivables financing
Advanced payment11,562,276.4011,562,276.40
Other receivables4,489,749,765.834,489,749,765.83
Including: Interest receivable
Dividends receivable
Stock
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets41,864.4441,864.44
Total Current Assets5,372,329,187.225,372,329,187.22
Non-current assets:
Debt investment1,500,000,000.001,500,000,000.00
Other investment on bonds
Long-term receivables
Long-term equity investments22,084,563,217.7322,084,563,217.73
Other equity instrument investment17,614,686.3617,614,686.36
Other non-current financial assets
Investment real estates103,347,729.63103,347,729.63
Fixed assets5,944,035,071.135,944,035,071.13
Construction in process1,523,216,463.561,523,216,463.56
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets26,139,356,460.3126,139,356,460.31
Development expenditure
Goodwill
Long-term deferred expenses1,499,423.291,499,423.29
Deferred income tax assets571,492,951.37571,492,951.37
Other non-current assets2,707,210,551.702,707,210,551.70
Total non-current assets60,592,336,555.0860,592,336,555.08
Total assets65,964,665,742.3065,964,665,742.30
Current liabilities:
Short-term loans3,404,762,465.753,404,762,465.75
Trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable4,299,771,896.224,299,771,896.22
Advance receipt34,980,345.8632,316,014.86-2,664,331.00
Contract liabilities2,513,519.812,513,519.81
Payroll payable3,081,586.763,081,586.76
Taxes payable514,166,694.40514,166,694.40
Other payables1,427,028,921.601,427,028,921.60
Where: Interest payable
Dividends payable
Liabilities held for sale
Other non-current liabilities due within one year1,971,942,633.551,971,942,633.55
Other current liabilities2,514,549,315.052,514,700,126.24150,811.19
Total current liabilities14,170,283,859.1914,170,283,859.19
Non-current liabilities
Long-term Loans23,264,718,125.2623,264,718,125.26
Bonds payable
Including: preferred stocks
Perpetual debt
Lease liabilities
Long-term payable294,000,000.00294,000,000.00
Long-term payroll payable125,852,148.97125,852,148.97
Estimated liabilities
Deferred Income301,639,375.00301,639,375.00
Deferred income tax liabilities66,701,454.0966,701,454.09
Other non-current liabilities
Total non-current liabilities24,052,911,103.3224,052,911,103.32
Total liabilities38,223,194,962.5138,223,194,962.51
Owners’ equity (or shareholders’ equity)
Paid-in capital (or capital stock)4,811,165,857.004,811,165,857.00
Other equity instrument
Including: preferred stocks
Perpetual debt
Capital reserves3,723,794,637.563,723,794,637.56
Minus: treasury stocks
Other comprehensive income9,953,082.589,953,082.58
Appropriate reserve
Surplus reserves3,136,400,886.763,136,400,886.76
Adjustment of the undistributed profits16,060,156,315.8916,060,156,315.89
Total owner’s equities (shareholder’s equities)27,741,470,779.7927,741,470,779.79
Total for Liabilities and Owners’ Equity (or Shareholders’ Equity)65,964,665,742.3065,964,665,742.30
Tax categoriesTax basisTax rate
VATToll revenue3%
VATRental revenue, advertising revenue, etc.5%, 6%, 9% and 13%
Urban maintenance and construction taxTurnover tax payable7%, 5%
Education surchargeTurnover tax payable5%
Enterprise income taxTaxable income15%, 20%, 25%
Name of taxpayerIncome 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
ItemEnding balanceBeginning balance
Cash in stock77,179.92146,872.71
Cash in bank2,208,173,576.121,788,196,184.38
Other monetary funds52,537,681.9328,273,135.63
Total2,260,788,437.971,816,616,192.72
including: Total amount of money deposited abroad
ItemEnding balanceBeginning balance
Cash deposit for bank acceptance bill35,376,507.4411,172,214.88
Guarantee margin17,161,174.4916,497,140.29
Security deposit for rural workers' wages603,780.46
Total52,537,681.9328,273,135.63
ItemEnding balanceBeginning balance
Financial assets measured at fair value with changes are included in the current profits and losses37,879,166.67
Including:
Debt instrument investment37,879,166.67
Total37,879,166.67
ItemEnding balanceBeginning balance
Bank acceptance bill54,564,808.00
Commercial acceptance bill78,553,471.98111,481,973.89
Total78,553,471.98166,046,781.89
CategoryEnding balanceBeginning balance
Book balanceBad debt reservesBook valueBook balanceBad debt reservesBook value
AmountProportion(%)AmountProportion of accrual (%)AmountProportion(%)AmountProportion of accrual (%)
Provision for bad debts accrued on an individual basis
Provision for bad debts accrued on a portfolio basis80,086,113.331,532,641.3578,553,471.98171,914,254.205,867,472.31166,046,781.89
Including:
Related party combination49,433,286.4061.7349,433,286.4054,564,808.0031.7454,564,808.00
Third party combination30,652,826.9338.271,532,641.355.0029,120,185.58117,349,446.2068.265,867,472.315.00111,481,973.89
Total80,086,113.33/1,532,641.35/78,553,471.98171,914,254.20/5,867,472.31/166,046,781.89

Provision for bad debts accrued on a portfolio basis:

√Applicable □ Not applicable

Portfolio accrual item: third party portfolio

Unit: yuan Currency: CNY

NameEnding balance
Notes receivableBad debt reservesProportion of accrual (%)
Within 1 year30,652,826.931,532,641.355.00
Total30,652,826.931,532,641.35
CategoryBeginning balanceCurrent change amountEnding balance
AccrualRecovery or reversalResale or writing off
Bad debt reserves of notes receivable5,867,472.31-4,334,830.961,532,641.35
Total5,867,472.31-4,334,830.961,532,641.35
AgingEnding book balance
Within 1 year
Including: sub items within 1 year
Sub-total within 1 year513,075,215.39
1 to 2 years10,949,879.54
2 to 3 years623,234.83
3 to 4 years961,255.17
4 to 5 years669,213.00
More than 5 years174,938.50
Total526,453,736.43

(2) Classified disclosure by bad debt accrual method

√ Applicable □ Not applicable

Unit: yuan Currency: CNY

CategoryEnding balanceBeginning balance
Book balanceBad debt reservesBook valueBook balanceBad debt reservesBook value
AmountProportion(%)AmountPercentage of provision (%)AmountProportion(%)AmountPercentage of provision (%)
Provision for bad debts accrued on an individual basis
Provision for bad debts accrued on a portfolio basis526,453,736.436,955,889.65519,497,846.78240,389,709.9124,139,510.11216,250,199.80
Including:
Related party combination423,415,319.8980.43423,415,319.892,229,287.250.932,229,287.25
Third party combination103,038,416.5419.576,955,889.656.7596,082,526.89238,160,422.6699.0724,139,510.1110.14214,020,912.55
Total526,453,736.43/6,955,889.65/519,497,846.78240,389,709.91/24,139,510.11/216,250,199.80

Provision for bad debts accrued on a portfolio basis:

√ Applicable □ Not applicable

Portfolio accrual item: third party portfolio

Unit: yuan Currency: CNY

NameEnding balance
Accounts receivableBad debt reservesAccrual proportion (%)
Within 1 year89,659,895.504,482,994.765.00
1-2 years10,949,879.541,094,987.9510.00
2-3 years623,234.83186,970.4530.00
3-4 years961,255.17480,627.5950.00
4-5 years669,213.00535,370.4080.00
More than 5 years174,938.50174,938.50100.00
Total103,038,416.546,955,889.65
CategoryBeginning balanceCurrent change amountEnding balance
AccrualRecovery or reversalResale or writing offOther changes
Provision for bad debts of accounts receivable24,139,510.11-17,183,620.466,955,889.65
Total24,139,510.11-17,183,620.466,955,889.65

□ Applicable √ Not applicable

Other statements:

□ Applicable √ Not applicable

6. Receivables financing

√ Applicable □ Not applicable

Unit: yuan Currency: CNY

ItemEnding balanceBeginning balance
Bank acceptance bill150,000,016.63108,547,434.59
Total150,000,016.63108,547,434.59
ItemEnding balanceBeginning balance
Bank acceptance bill28,975,000.00
Total28,975,000.00
AgingEnding balanceBeginningBalance
AmountProportion(%)AmountProportion(%)
Within 1 year140,542,952.6695.85174,771,453.3296.42
1 to 2 years4,703,965.973.215,605,635.963.09
2 to 3 years522,536.550.36554,192.390.31
More than 3 years849,839.080.58333,036.750.18
Total146,619,294.26100.00181,264,318.42100.00

□ Applicable √ Not applicable

8. Listing of other receivable projects

√ Applicable □ Not applicable

Unit: yuan Currency: CNY

ItemEnding balanceBeginning balance
Interest receivable
Dividends receivable75,037,985.75524,516,294.16
Other receivables4,175,472,909.424,839,419,231.32
Total4,250,510,895.175,363,935,525.48
Project (or investee unit)Ending balanceBeginning balance
Evergrande Real Estate Group Co., Ltd.524,516,294.16
Jinan Changying transportation infrastructure investment fund partnership (limited partnership)75,037,985.75
Total75,037,985.75524,516,294.16
AgingEnding book balance
Within 1 year
Sub-total within 1 year938,594,674.53
1 to 2 years2,769,627,764.68
2 to 3 years179,389,344.58
3 to 4 years228,515,129.67
4 to 5 years293,295.25
More than 5 years374,648,980.35
Total4,491,069,189.06
Nature of receivablesEnding book balanceBeginning book balance
Intercourse funds3,931,194,242.094,632,220,949.14
Toll split130,434,140.05150,838,296.07
Payment for Kenxin Project (Note 1)305,533,879.36305,533,879.36
Deposits, security deposits123,906,927.5613,344,573.58
Total4,491,069,189.065,101,937,698.15
Bad debt reservesPhase IPhase IIPhase IIITotal
Expected credit loss in the next 12 monthsExpected 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, 202053,755,729.68762,978.92207,901,469.17262,420,177.77
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 period9,406,350.36151,791.2343,932,518.7155,239,985.39
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, 202062,847,521.61914,770.15251,833,987.88315,596,279.64
CategoryBeginning balanceCurrent change amountEnding balance
AccrualRecovery or reversalResale or writing offOthers change
Provision for other bad debts receivable262,420,177.7753,490,660.30-314,558.43315,596,279.64
Total262,420,177.7753,490,660.30-314,558.43315,596,279.64

(12) Top five other receivables of ending balance collected by debtors

√ Applicable □ Not applicable

Unit: yuan Currency: CNY

Company name:Nature of receivablesEnding balanceAgingProportion in total ending balance of other receivables (%)Ending balance of provision for bad debt
Shandong Hi-Speed Xicheng Property Co., Ltd.Intercourse funds2,680,123,634.691-2 years59.68%
Jinan Puyuan Real Estate Co., Ltd.Intercourse funds452,732,622.932-3 years10.08%
Bureau of Finance of Fushan District, Yantai CityLand replacement payments413,616,620.65Within 1 year9.21%
Shenzhen Litianjun Supply Chain Co., Ltd.Receivables of Kenxin Project305,533,879.36More than 5 years6.80%201,295,159.36
Huantai County Xinghuan Railway Investment Co. Ltd.Intercourse funds70,000,000.00Within 1 year1.56%18,884,200.00
Total/3,922,006,757.63/87.33%220,179,359.36
ItemEnding balanceBeginning balance
Book balanceFalling price reserve of inventory/impairment reserves of contract performance costBook valueBook balanceFalling price reserve of inventory/impairment reserves of contract performance costBook value
Raw materials179,031,840.0652,974,345.27126,057,494.7944,710,790.93301,882.1044,408,908.83
Finished goods104,819,717.90464,498.64104,355,219.26114,781,822.37403,403.60114,378,418.77
Goods in transit36,944,579.4836,944,579.48
Entrusted processing materials243,062.89243,062.89
Development costs1,159,759,913.041,159,759,913.041,514,388,124.021,514,388,124.02
Products development38,540,303.7838,540,303.78
Others209,251.50209,251.501,955,465.501,955,465.50
Total1,443,820,722.5053,438,843.911,390,331,878.591,751,564,148.97705,285.701,750,858,863.27
ItemBeginning balanceAmount increased in the current periodAmount decreased in the current periodEnding balance
AccrualOthersReversal or resaleOthers
Raw materials301,882.1052,672,463.1752,974,345.27
Finished goods403,403.6061,095.04464,498.64
Total705,285.7052,733,558.2153,438,843.91
Project NameCommencement dateEstimated completion dateEstimated total investmentBalance at the beginning of the yearYear-end balance
Jiahe Island ProjectNot startedNot started4,250,480,000.001,514,388,124.021,159,759,913.04
Total4,250,480,000.001,514,388,124.021,159,759,913.04
ItemEnding balanceBeginning balance
Book balanceImpairment reservesBook valueBook balanceImpairment reservesBook value
Project contract assets165,137,562.874,262,252.54160,875,310.33164,016,085.12444,323.92163,571,761.20
Total165,137,562.874,262,252.54160,875,310.33164,016,085.12444,323.92163,571,761.20

□ Applicable √ Not applicable

(3) Accrual for impairment reserves of contract assets in the current period

√ Applicable □ Not applicable

Unit: yuan Currency: CNY

ItemAccrual in current periodAmount reversed in current periodCurrent write-offsReason
Project contract assets3,817,928.62
Total3,817,928.62/
ItemEnding balanceBeginning balance
Zhongteng global investment project88,000,000.00
Project of Shanghai Weishi Investment Management Co., Ltd.113,246,088.67
Total113,246,088.6788,000,000.00
ItemEnding balanceBeginning balance
Prepaid income tax of the enterprise2,098,742.4112,925,843.76
Input tax to be deducted219,318,777.23118,271,838.39
Guangkai financial leasing debt investment project74,500,000.00
Project of Qingdao Wudaokou New Energy Vehicle Industry Fund1,000,000,000.00
Payment for Evergrande equity transfer3,516,095,138.11
Others1,456,840.911,391,442.48
Total3,738,969,498.661,207,089,124.63

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

ItemEnding balanceBeginning balance
Book balanceImpairment reservesBook valueBook balanceImpairment reservesBook value
Jinan Changying Jinyu investment partnership (limited partnership) loan project40,111,111.1140,111,111.1133,000,000.0033,000,000.00
Weihai Mediterranean International Style Town Project60,220,000.0060,220,000.00
Capital contribution by BOE Trust500,000,000.00500,000,000.00500,000,000.00500,000,000.00
Weifang Shangao new and old kinetic energy conversion fund project1,050,000,000.001,050,000,000.001,500,000,000.001,500,000,000.00
Shandong Railway Development Fund63,263,163.0063,263,163.00
Infrastructure investment projects such as urban renewal900,882,460.61900,882,460.61
Project of Shanghai Weishi Investment Management Co., Ltd.223,507,600.00223,507,600.00
Haiyi Mianwei Investment Co., Ltd Borrowing Project32,000,000.0032,000,000.00
Total2,614,476,734.722,614,476,734.722,288,507,600.002,288,507,600.00

(2). Important credit investment at the end of the period.

√ Applicable □ Not applicable

Unit: yuan Currency: CNY

ItemEnding balanceBeginning balance
Face valueNominal interest rateActual interest rateDue dateFace valueNominal interest rateActual interest rateDue date
Jinan Changying Jinyu investment partnership (limited partnership) loan project40,000,000.0010.00%10.00%12/30/202233,000,000.0010.00%10.00%12/30/2022
Weihai Mediterranean International Style Town Project60,000,000.0012.00%12.00%8/25/2022
Loan project of Haiyi Liwei Investment Co., Ltd32,000,000.0010.00%10.00%6/28/2021
Project of Shanghai Weishi Investment Management Co., Ltd.223,507,600.0010.00%10.00%4/4/2021
Capital contribution by BOE Trust500,000,000.008.50%8.50%12/31/2022500,000,000.008.50%8.50%12/31/2022
Weifang Shangao new and old kinetic energy conversion fund project1,050,000,000.0015.00%15.00%12/1/20231,500,000,000.0015.00%15.00%12/1/2023
Shandong Railway Development Fund63,263,163.004.85%4.85%6/30/20308.50%8.50%12/31/2022
Infrastructure investment projects such as urban renewal150,000,000.0010.70%10.70%4/8/2026
Infrastructure investment projects such as urban renewal185,980,000.0010.70%10.70%6/11/2025
Infrastructure investment projects such as urban renewal189,600,000.0010.70%10.70%8/7/2025
Infrastructure investment projects such as urban renewal137,183,300.0010.50%10.50%10/13/2025
Infrastructure investment projects such as urban renewal231,166,130.0010.70%10.70%10/30/2025
Total2,607,192,593.002,288,507,600.00

(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

InvesteeBeginning balanceIncrease or decrease in current periodEnding balanceEnding balance of impairment reserves
Additional investmentDecreased investmentProfits and losses on investment recognized by equity methodAdjustment of other comprehensive incomeOther equity changesDeclaration and distribution of cash dividends or profits distributionAccrual of impairment reservesOthers
I. Joint venture
Shandong Hi-Speed Changying Equity Investment Management Co., Ltd.56,522,735.671,965,037.7458,487,773.41
Shandong Zhonglan Railway Operation Co., Ltd.51,000,000.0051,000,000.00
Subtotal56,522,735.671,965,037.7451,000,000.00109,487,773.41
II. Associated enterprises
Weihai City Commercial Bank2,659,454,352.14197,058,843.04-34,300,106.11-74,467,431.9869,395,798.702,678,349,858.39
Shandong High-speed Logistics Group Co., Ltd.692,500,766.4817,947,666.27710,448,432.75
Shandong High-speed Engineering Project Management Co. Ltd.61,883,479.571,737,768.9821,738,329.14-7,655,851.9174,228,187.82
Shandong Hi-Speed Changying Huitong Equity Investment18,773,771.681,280,807.6620,054,579.34
Fund Partnership (Limited Partnership)
Dongxing Securities Co., Ltd.2,372,539,748.4972,931,666.23-24,107,726.4116,798,500.002,404,565,188.31
Fujian Longma Environmental Sanitation Equipment Co., Ltd.414,739,204.4125,706,280.734,134,026.52436,311,458.62
Shandong Environmental Protection Industry Co., Ltd8,616,004.04570,224.049,186,228.08
Shandong General Aviation Service Co., Ltd89,900,000.001,146,718.1591,046,718.15
Shandong CSIC Chinatong New Old Energy Conversion Industry Investment Fund Partnership (Limited Partnership)34,500,000.0034,500,000.00
CSIC EIT (Shandong) City Operation Service Co.9,800,000.009,800,000.00
Shandong New Old Energy CSIC Chengtay Venture Capital Fund Partnership20,305,753.4220,305,753.42
(Limited Partnership)
Jinan Changying Transportation Infrastructure Investment Fund Partnership2,134,508,339.14150,000,000.00288,256,261.79159,177,506.452,413,587,094.48
Shandong Hi-Speed Yingli New Energy Co., Ltd.23,993,777.3625,000,000.002,886,115.023,892,337.66
Shandong High-Speed (Henan) Maintenance Technology Co., Ltd.16,530,000.0015,246.9116,545,246.91
Shanghai Jinghai Enterprise Management Center (limited partnership)240,350,000.003,417,721.05236,932,278.95
Sooner Information Technology Co.34,570,411.471,849,443.6932,720,967.78
Jinan Changying Jintai Equity Investment Fund Partnership (limited partnership)56,700,000.0020,000,000.001,724,996.00-1,724,996.0036,700,000.00
Jinan Changying Jinyu Investment Partnership (limited partnership)7,000,000.00-7,000,000.00
Guiyang47,226,363.4139,721,500.0565,982.018,070,845.42
Zhongyun Copyright Industry Fund Partnership (Limited Partnership)0
Shandong Hi-Speed Jitai Mining Investment Co., Ltd.3,226,403.74620,401.142,606,002.60
Shandong Hi-Speed Jinan Investment Co., Ltd.641,471,800.0011,945,452.66629,526,347.34
Shandong Hi-Speed Zhongke Incubation Management Co., Ltd.500,000.0060,354.61560,354.61
Hunan Lianzhi Technology Co., Ltd30,000,000.0030,000,000.00
Guangdong Provincial Expressway Development Co., Ltd.1,262,909,310.9868,709,508.746,254,776.261,337,873,595.99
Jinan Puyuan Real Estate Co., Ltd.1,273,014,455.42108,839,223.521,164,175,231.90
Shenzhen zhongran Fund Management Co., Ltd9,059,283.85147,734.829,207,018.67
Shandong Lingang Shugang Rail Transit Co., Ltd.120,000,000.00280,000,000.00400,000,000.00
Shandong Hi-Speed New Material Technology72,359.5916,000,000.0016,072,359.59
Co., Ltd.
Subtotal10,820,128,161.201,893,945,064.4086,459,268.98568,374,622.65-58,407,832.52-68,212,655.72251,230,827.670.005,236,485.7512,823,373,749.11
Total10,876,650,896.871,893,945,064.4086,459,268.98-58,407,832.52-58,407,832.52-68,212,655.72251,230,827.670.0056,236,485.7512,932,861,522.52
ItemEnding balanceBeginning balance
Shandong Hi-speed Culture Media Co., Ltd.17,614,686.3617,614,686.36
Shandong Hi-Speed Greentown Laiwu Xueye Lake Development Co., Ltd.5,182,926.83
Shandong Weilai High Speed Railway Co., Ltd.31,626,837.0031,626,837.00
Shandong Railway Investment Holding Group Co., Ltd.300,000,000.00300,000,000.00
Total349,241,523.36354,424,450.19
ItemEnding balanceBeginning balance
Nanfang Cement Receivables No. 1 Asset-Backed Special Plan35,709,250.0035,709,250.00
Champion Rental 2018 Phase II Asset-Backed Special Plan Asset-Backed Securities68,331,941.10
Equity investment by Evergrande Real Estate Group Co., Ltd.5,000,000,000.00
Yike Tower Investment Project563,893,198.11563,893,198.11
Total599,602,448.115,667,934,389.21
ItemHouses and buildingsTotal
I. Original book value
1. Beginning balance869,968,368.33869,968,368.33
2. Amount increased in the current period1,319,118.351,319,118.35
(1) Outsourcing
(2) Inventory\fixed assets\construction in progress1,319,118.351,319,118.35
(3) Business combination increased
3. Amount decreased in the current period
(1) Disposal
(2) Other transfers
4. Ending balance871,287,486.68871,287,486.68
II. Total accumulated depreciation and accumulated amortization
1. Beginning balance114,854,754.19114,854,754.19
2. Amount increased in the current period32,036,789.9332,036,789.93
(1) Accrual or amortization32,036,789.9332,036,789.93
3. Amount decreased in the current period
(1) Disposal
(2) Other transfers
4. Ending balance146,891,544.12146,891,544.12
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 value724,395,942.56724,395,942.56
2. Beginning book value755,113,614.14755,113,614.14
ItemEnding balanceBeginning balance
Fixed assets9,267,680,678.569,609,521,167.21
Disposal of fixed assets
Total9,267,680,678.569,609,521,167.21

(1). Fixed assets

√ Applicable □ Not applicable

Unit: yuan Currency: CNY

ItemRoad propertyHouses and BuildingsMachinery equipmentTransportation meansElectronic appliances and communication equipmentInstruments and standard measuring apparatusOther EquipmentTotal
I. Original book value:
1. Beginning balance12,385,124,456.343,510,042,375.59324,405,666.04522,514,877.311,488,671,995.7156,409,980.0341,223,724.4418,328,393,075.46
2. Increase in the current year491,249,098.18165,527,891.7215,403,983.0721,400,212.81342,537,575.107,893,559.175,363,458.251,049,375,778.30
(1) Acquisition3,410,384.6531,304,903.3513,671,518.2221,400,212.81263,001,443.927,361,956.774,553,776.25344,657,833.14
(2) Transferred from construction in progress487,838,713.53109,736,120.4779,536,131.18531,602.40809,682.00678,452,249.58
(3) Business combination increased1,732,464.85
(4) Others24,486,867.9024,486,867.90
3. Amount decreased in the current period393,098,202.86118,482,690.9097,233,276.0815,934,097.6319,712,264.472,347,728.284,757,486.75651,565,746.97
(1) Disposal or scrap384,862,466.506,580,919.0812,578,918.5813,963,376.3318,639,393.871,797,623.673,162,276.71441,584,974.74
(2) Other decreases8,235,736.36111,901,771.8284,654,357.501,970,721.301,072,870.60550,104.611,595,210.04209,980,772.23
4. Ending balance12,483,275,351.663,557,087,576.41242,576,373.03527,980,992.491,811,497,306.3461,955,810.9241,829,695.9418,726,203,106.79
II. Accumulated depreciation
1. Beginning balance6,863,010,793.82724,719,508.42142,081,972.10388,908,808.83537,671,468.3934,332,168.6228,147,188.078,718,871,908.25
2. Amount increased in the current period640,221,005.54110,266,643.8021,030,671.6829,333,180.87258,302,268.016,780,063.893,034,041.751,068,995,306.24
(1) Accrual640,221,005.54110,266,643.8021,030,671.6829,434,799.03258,312,041.296,780,063.893,034,041.751,068,995,306.24
(2) Business combination increased27,430.7027,430.70
3. Amount decreased in the current period255,581,176.5813,381,386.6924,403,433.3413,803,432.6416,911,411.381,897,201.093,366,744.54329,344,786.26
(1) Disposal or scrap255,581,176.589,677,370.3711,650,127.4213,323,627.8516,664,863.111,696,480.263,028,482.26311,622,127.85
(2) Other decreases3,704,016.3212,753,305.92479,804.79246,548.27200,720.83338,262.2817,722,658.41
4. Ending balance7,247,650,622.78821,604,765.53138,736,641.14404,438,557.06779,062,325.0239,215,031.4227,814,485.289,458,522,428.23
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 value5,235,624,728.882,735,482,810.88103,839,731.89123,542,435.431,032,434,981.3222,740,779.5014,015,210.669,267,680,678.56
2. Beginning book value5,522,113,662.522,785,322,867.17182,323,693.94133,606,068.48951,000,527.3222,077,811.4113,076,536.379,609,521,167.21

(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

ItemEnding book value
Fixed assets leased out by operating lease20,244,042.76
Total20,244,042.76
ItemBook valueReason for not being granted property right certificates
Road property66,744,852.27In progress
Buildings265,252,095.62In progress
Total331,996,947.89
ItemEnding balanceBeginning balance
Construction in process8,480,761,085.912,530,414,811.07
Engineering material
Total8,480,761,085.912,530,414,811.07

Construction in process

(1).Construction in process

√ Applicable □ Not applicable

Unit: yuan Currency: CNY

ItemEnding balanceBeginning balance
Book balanceImpairment reservesBook valueBook balanceImpairment reservesBook value
Provincial Boundary Toll Station Cancellation Project27,181,361.9027,181,361.90
Tunnel upgrading project9,652,987.409,652,987.40
Widening and reconstruction of Ganggou toll station3,905,973.443,905,973.4416,629,812.9116,629,812.91
Reconstruction project of Jinghu expressway tunnel section72,637,476.8572,637,476.85
Beijing-Taipei Expressway Dezhou-Qihe Section Renovation Expansion Project6,128,657,900.986,128,657,900.981,390,342,323.001,390,342,323.00
Weilai expressway assets transformation project.41,840,386.8041,840,386.80
Beijing-Taipei Expressway Jinan-Taian Section Renovation and Expansion Project473,623,631.48473,623,631.48
New TDCS for Yiyang Line10,538,260.3410,538,260.34
Lanshan Station Asphalt Grand Depot6,671,883.906,671,883.90216,037.74216,037.74
Pinglan line expansion and renovation2,535,784.372,535,784.37
New TDCS for Caoshou Line4,646,542.054,646,542.05
Shouping railway14,170,000.0014,170,000.00127,147,000.00127,147,000.00
Zhonglan Railway Project16,489,338.1816,489,338.18
Industrial park land leveling8,756,397.828,756,397.823,375,300.763,375,300.76
Dispatching office upgrade20,150,635.7520,150,635.75
Dalailong Railway Expansion and Renovation Project1,689,535,500.051,689,535,500.05779,509,595.30779,509,595.30
Green Aggregate Development and Utilization Project in Rujiazhuang Mining Area, Linqu County42,946,341.0042,946,341.0027,528,097.9327,528,097.93
Green Transportation Products Industrial Park Project80,052,703.9280,052,703.92
Others8,739,530.818,739,530.8117,865,092.3017,865,092.30
Total8,494,931,085.9114,170,000.008,480,761,085.912,530,414,811.072,530,414,811.07

Unit: yuan Currency: CNY

Project NameBudget amountBeginning balanceAmount increased in the current periodAmount included in fixed assets in current periodOther decreased amount in current periodEnding balanceProportion of cumulative project investment in budget (%)Project progressAccumulated amount of capitalized interestincluding: Capitalized amount of current interestCapitalization rate of current interest (%)Capital source
Widening and reconstruction of Ganggou toll station35,000,000.0016,629,812.911,162,486.4213,886,325.893,905,973.4450.84%50.84%Have funds and own funds
Reconstruction project of Jinghu expressway tunnel section74,893,482.2572,637,476.8572,073,834.81563,642.04100.00%100.00%Have funds and own funds
Beijing-Taipei Expressway Dezhou-Qihe Section Renovation Expansion Project11,904,333,557.001,390,342,323.004,738,315,577.986,128,657,900.9851.51%51.51%108,377,862.53100,360,888.700.41%Borrowings and own funds
Weilai expressway assets transformation project.423,528,555.8241,840,386.80283,864,822.57325,705,209.37-76.90%76.90%Have funds and own funds
Beijing-Taipei Expressway Jinan-Taian Section Renovation and Expansion Project6,622,000,000.00473,623,631.48473,623,631.487.15%7.15%Borrowings and own funds
Pinglan line expansion and renovation1,200,000,000.002,535,784.372,535,784.370.21%0.21%Have funds and own funds
800,000t Cold Rolled Ribbed Steel Bar Project198,560,000.00475,243.61475,243.61-100.00%100.00%Have funds and own funds
Dispatching office upgrade28,338,200.0020,150,635.7520,150,635.7588.99%88.99%Have funds and own funds
Dalailong Railway Expansion and Renovation Project4,520,000,000.00779,509,595.30910,025,904.751,689,535,500.0537.38%37.38%23,955,361.1122,791,611.110.16%Borrowings and own funds
Green Aggregate Development and Utilization Project in Rujiazhuang Mining Area, Linqu County108,000,000.0027,528,097.9315,418,243.0742,946,341.0039.77%39.77%Have funds and own funds
Green Transportation Products Industrial Park Project220,000,000.0080,052,703.9280,052,703.9236.39%36.39%Have funds and own funds
Total25,334,653,795.072,328,962,936.406,525,149,790.31397,779,044.1814,925,211.548,441,408,470.99//132,333,223.64123,152,499.81

(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

ItemLand use rightsToll road franchiseOffice softwareRight of miningOthersTotal
I. Original book value
1. Beginning balance1,775,169,575.5147,778,171,656.1671,085,537.56458,257,172.8212,718,368.4450,095,402,310.49
2. Amount increased in the current period823,383,445.32780,595,264.4221,417,703.521,992,655.011,627,389,068.27
(1) Acquisition16,388,402.3221,417,703.521,042,918.4138,849,024.25
(2) Investment construction780,595,264.42780,595,264.42
(3) Business combination increased
(4) Others806,995,043.00806,995,043.00
3. Amount decreased in the current period31,746,190.5225,747,496.22384,625.3857,878,312.12
(1) Disposal31,746,190.5225,747,496.22384,625.3857,878,312.12
(2) Others-
4. Ending balance2,566,806,830.3148,533,019,424.3692,118,615.70458,257,172.8214,711,023.4551,664,913,066.64
II. Accumulated amortization-
1. Beginning balance700,421,389.576,986,891,297.6037,476,369.7940,119,444.44747,588.747,765,656,090.14
2. Amount increased in the current period61,168,437.491,173,322,023.0910,269,824.781,955,912.581,246,716,197.94
(1) Accrual61,168,437.491,173,322,023.0910,269,824.781,955,912.581,246,716,197.94
(2) Business combination increased-
3. Amount decreased in the current period1,347,651.141,670,433.04172,020.513,190,104.69
(1) Disposal1,347,651.141,670,433.04172,020.513,190,104.69
(2) Others
4. Ending balance760,242,175.928,158,542,887.6547,574,174.0640,119,444.442,703,501.329,009,182,183.39
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 value1,806,564,654.3940,374,476,536.7144,544,441.64418,137,728.3812,007,522.1342,655,730,883.25
2. Beginning book value1,074,748,185.9440,791,280,358.5633,609,167.77418,137,728.3811,970,779.7042,329,746,220.35

(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:

ItemYear-end balanceBalance at the beginning of the year
Original valueBook valueOriginal valueBook value
Xuchang-Yuzhou Expressway1,159,917,671.59710,851,501.321,158,874,198.71738,134,328.37
Jinan-Laiwu High-speed Railway4,240,696,715.252,267,361,750.444,224,737,881.592,438,482,662.86
Weihai-Rushan Expressway1,913,708,210.911,036,143,925.821,913,708,210.911,100,235,547.63
Jinan-Qingdao Expressway23,082,374,550.4022,283,579,522.1422,361,619,754.3922,136,936,832.13
Hengyang-Shaoyang Expressway4,813,253,975.144,130,783,426.064,836,519,500.004,248,859,159.13
Lijin Bridge261,863,584.26114,978,527.52221,507,393.7575,945,390.72
Jiyuan-Jincheng Expressway2,219,258,040.461,611,705,065.632,219,258,040.461,658,556,061.74
Wuhan-Jingmen Expressway10,841,946,676.358,219,072,817.7810,841,946,676.358,394,130,375.98
Total48,533,019,424.3640,374,476,536.7147,778,171,656.1640,791,280,358.56

Unit: yuan Currency: CNY

ItemBeginning balanceAmount increased in the current periodAmortization amount in the current periodOther decreased amountEnding balance
Decoration cost and others2,423,554.124,427,490.061,142,910.205,708,133.98
Parking space rental5,700,000.00250,000.005,450,000.00
Total8,123,554.124,427,490.061,392,910.205,450,000.005,708,133.98
ItemEnding balanceBeginning balance
Deductible temporary differencesDeferred income tax assetsDeductible temporary differencesDeferred income tax assets
Asset impairment reserves278,625,990.3267,113,395.45275,950,961.0066,699,825.98
Internally unrealized profits38,160,850.649,540,212.6638,299,245.818,324,775.30
Deductible loss78,410,008.6519,602,502.16275,495,968.2868,873,992.07
Demolition loss1,280,676,564.78320,169,141.201,245,810,060.69311,452,515.18
Deferred Income679,786,260.54169,946,565.14300,000,000.0075,000,000.00
Dismissal benefits255,409,735.9463,391,890.26266,417,483.3866,019,182.99
Estimated liabilities101,003,377.3025,250,844.3379,858,700.3219,964,675.08
Share-based payment18,429,300.004,607,325.00
Total2,730,502,088.17679,621,876.202,481,832,419.48616,334,966.60
ItemEnding balanceBeginning balance
Taxable temporary differencesDeferred income tax liabilitiesTaxable temporary differencesDeferred income tax liabilities
Valuation and appreciation of consolidated assets of enterprises not under the same control2,521,478,020.28630,369,505.072,581,406,598.40645,351,649.60
Depreciation and amortization of long-term assets1,613,982,451.32403,495,612.831,029,582,613.96257,395,653.49
Accelerated depreciation of fixed assets32,177,409.208,044,352.3024,141,780.766,035,445.19
Total4,167,637,880.801,041,909,470.203,635,130,993.12908,782,748.28
ItemEnding balanceBeginning balance
Deductible temporary differences64,120,005.5332,876,444.87
Deductible loss2,041,059,639.242,003,996,815.31
Total2,105,179,644.772,036,873,260.18
YearEnding amountBeginning amountNote
2020317,803,240.98
2021240,192,439.18377,898,282.34
2022371,738,625.88371,738,625.88
2023422,969,337.90416,506,357.11
2024529,136,333.88520,050,309.00
2025 and beyond477,022,902.40
Total2,041,059,639.242,003,996,815.31/
ItemEnding balanceBeginning balance
Book balanceImpairment reservesBook valueBook balanceImpairment reservesBook value
Advance payment for project1,759,900,789.041,759,900,789.041,923,575,663.991,923,575,663.99
Total1,759,900,789.041,759,900,789.041,923,575,663.991,923,575,663.99

Unit: yuan Currency: CNY

ItemEnding balanceBeginning balance
Mortgage loan60,000,000.00-
Guaranteed loan19,022,351.3940,000,000.00
Credit loan2,781,996,170.67528,567,899.41
Total2,861,018,522.06568,567,899.41
VarietyEnding balanceBeginning balance
Commercial acceptance bill186,356,624.59-
Bank acceptance bill89,716,204.5033,211,430.37
Total276,072,829.0933,211,430.37
ItemEnding balanceBeginning balance
Accounts payable4,667,741,873.745,020,997,647.35
Total4,667,741,873.745,020,997,647.35
ItemEnding balanceReasons for non-payment or carry forward
China Railway 14th Bureau Group Co., Ltd.249,655,583.67The project has not yet completed with the final accounting
The First Construction Co., Ltd. of the Eighth Division of China Construction Corporation240,238,516.16The project has not yet completed with the final accounting
Qingdao Greenland Ecological Technology Co., Ltd.136,915,421.32The project has not yet completed with the final accounting
Yantai Railway Construction Administration97,562,800.00The project has not yet completed with the final accounting
Weifang Local Railway Administration32,214,148.00The project has not yet completed with the final accounting
Total756,586,469.15/
ItemEnding balanceBeginning balance
Deposit received69,254,472.7786,920,719.72
Total69,254,472.7786,920,719.72
ItemEnding balanceBeginning balance
Advance payment37,339,306.4132,866,289.70
Freight received in advance81,343,779.5059,180,998.63
Project payment received in advance42,901,617.86
Others91,743.12
Total118,774,829.03134,948,906.19

Unit: yuan Currency: CNY

ItemBeginning balanceIncrease in the Current PeriodDecrease in the Current PeriodEnding balance
I. Short-term payroll89,845,803.371,498,547,751.721,483,529,592.10104,863,962.99
II. Post-employment benefits - defined contribution plan424,729.08154,569,464.53154,929,258.5564,935.06
II. Dismissal benefits2,128,683.342,128,683.34
IV. Other benefits due within one year
Total90,270,532.451,655,245,899.591,640,587,533.99104,928,898.05
ItemBeginning balanceIncrease in the Current PeriodDecrease in the Current PeriodEnding balance
I. Wage, bonus, allowance and subsidy46,012,995.361,106,207,192.171,101,175,171.5151,045,016.02
II. Welfare benefits payable51,128.4998,997,640.7299,048,769.21
II. Social insurance charges10,908,889.56106,650,510.07107,623,023.329,936,376.31
Including: medical insurance56,213,614.9556,167,587.3646,027.59
Work-related injury insurance premiums2,987,306.472,987,306.47
Maternity insurance premium1,093,871.801,093,871.80
Supplementary insurance10,908,889.5646,355,716.8547,374,257.699,890,348.72
IV. Housing provident fund102,284,064.47101,357,461.75926,602.72
V. Labor union funds and employee education funds31,636,997.3736,196,754.4526,217,533.4541,616,218.37
VI Short-term paid absences
VII. Short-term profit sharing plan
VIII. Non-monetary Benefit218,624.24218,624.24
IX. Labor expenses1,235,792.5947,992,965.6047,889,008.621,339,749.57
Total89,845,803.371,498,547,751.721,483,529,592.10104,863,962.99

√ Applicable □ Not applicable

Unit: yuan Currency: CNY

ItemBeginning balanceIncrease in the Current PeriodDecrease in the Current PeriodEnding balance
1. Basic endowment insurance75,705,289.4075,705,289.40
2. Unemployment insurance premium3,232,377.663,232,377.66
3. Payment of enterprise annuity424,729.0875,631,797.4775,991,591.4964,935.06
Total424,729.08154,569,464.53154,929,258.5564,935.06
ItemEnding balanceBeginning balance
VAT172,683,975.10108,354,041.08
Turnover tax55,826.4855,826.48
Enterprise income tax352,420,122.35621,905,055.87
Individual income tax8,865,322.146,468,550.11
Urban maintenance and construction tax8,988,011.066,435,938.29
House property tax5,566,394.765,532,340.89
Education surcharge7,059,718.964,354,730.72
Land use tax1,324,411.771,784,155.98
Stamp duty5,826,707.755,472,797.01
Value-added tax on land10,632,887.6835,512,966.90
Others472,800.49316,345.80
Total573,896,178.54796,192,749.13
ItemEnding balanceBeginning balance
Dividends payable60,885,896.2525,917,525.46
Other payables3,423,415,991.892,634,683,270.79
Total3,484,301,888.142,660,600,796.25

Interest payable

(1). Presentation of categories.

□ Applicable √ Not applicable

Dividends payable

(2). Presentation of categories.

√ Applicable □ Not applicable

Unit: yuan Currency: CNY

ItemEnding balanceBeginning balance
Common stock dividends43,208,818.6225,917,525.46
Preferred share/perpetual liability dividends divided into equity instrument17,677,077.63
Preferred stock\perpetual bond dividends17,677,077.63
Total60,885,896.2525,917,525.46
ItemEnding balanceBeginning balance
Project funds110,282,672.82193,031,970.05
Current accounts and advances on behalf of others379,626,433.30443,475,615.12
Current accounts of related parties outside the scope of consolidation。2,736,753,991.611,705,813,352.38
Collection of receivables from Shandong Hi-speed Xinlian Technology Co., Ltd.41,858,249.97
Project security and deposit101,683,002.7939,422,303.45
Equity transfer payable86,938,613.46191,803,642.24
Others8,131,277.9119,278,137.58
Total3,423,415,991.892,634,683,270.79
ItemEnding balanceReasons for non-payment or carry forward
Shandong Railway Investment Holding Group Co., Ltd.1,100,000,000.00Investment Fund for Capacity Expansion and Transformation of Dalailong
China Railway Jinan Bureau Group Co., Ltd.125,176,323.82Failure to meet the settlement condition
Henan JuKang Investment Co., Ltd55,438,613.46Failure to meet the settlement condition
Shanghai Zhida Technology (Group) Co., Ltd.31,500,000.00Failure to meet the settlement condition
Longkou Port Group Co., Ltd.24,621,590.40Failure to meet the settlement condition
Total1,336,736,527.68/
ItemEnding balanceBeginning balance
Long-term loan due within one year3,557,502,908.492,543,012,734.46
Long-term payroll payable80,215,223.9472,092,480.10
Interest on undue long-term loans55,127,746.8660,483,688.57
Total3,692,845,879.292,675,588,903.13
ItemEnding balanceBeginning balance
Short term bonds payable2,515,141,657.312,514,549,315.05
Output VAT pending transfer14,683,604.3911,194,078.09
Total2,529,825,261.702,525,743,393.14

Increase and decrease of short-term bonds payable:

√ Applicable □ Not applicable

Unit: yuan Currency: CNY

Bond nameFace valueIssuing dateBond durationAmount issuedBeginning balanceCurrent issuanceInterests accrued by face valueAmortization of the premiums and discountsCurrent paymentEnding balance
The seventh phase of ultra-short-term financing in 2019100.009/19/2019180 days1,500,000,000.001,512,992,876.699,433,352.821,522,426,229.51
The tenth phase of ultra-short-term financing in 2019100.0012/13/2019180 days1,000,000,000.001,001,556,438.3613,148,479.671,014,704,918.03
The first phase of ultra-short-term financing in 2020100.003/13/2020180 days1,000,000,000.001,000,000,000.0012,082,191.781,012,082,191.78
The second phase of ultra-short-term financing in 2020100.003/19/2020180 days1,000,000,000.001,000,000,000.0011,638,356.161,011,638,356.16
The third phase of ultra-short-term financing in 2020100.004/15/2020180 days1,000,000,000.001,000,000,000.008,876,712.331,008,876,712.33
The fourth phase of ultra-short-term financing in 2020100.006/8/2020270 days1,000,000,000.001,000,000,000.0010,208,219.181,010,208,219.18
The fifth phase of ultra-short-term financing in 2020100.009/30/202090 days1,000,000,000.001,000,000,000.005,671,232.881,005,671,232.88
The sixth phase of ultra-short-term financing in 2020100.0010/16/202030 days1,000,000,000.001,000,000,000.001,808,219.181,001,808,219.18
The seventh phase of ultra-short-term financing in 2020100.0011/11/202023 days1,500,000,000.001,500,000,000.001,795,890.411,501,795,890.41
The fourth phase of ultra-short-term financing in 2020100.0011/12/202090 days1,500,000,000.001,500,000,000.004,933,438.131,504,933,438.13
The eighth phase of ultra-short-term financing in 2020100.0012/2/202020 days1,000,000,000.001,000,000,000.001,041,095.891,001,041,095.89
Total///12,500,000,000.002,514,549,315.0510,000,000,000.0080,637,188.4310,080,044,846.172,515,141,657.31

45. Long-term Loans

(1). Classification of long-term loan.

√ Applicable □ Not applicable

Unit: yuan Currency: CNY

ItemEnding balanceBeginning balance
Pledge borrowing19,749,468,195.9624,119,080,000.00
Mortgage loan224,000,000.00150,000,000.00
Guaranteed loan1,274,000,000.001,412,000,000.00
Credit loan13,730,513,441.897,632,956,294.39
Total34,977,981,637.8533,314,036,294.39

Unit: yuan Currency: CNY

ItemEnding balanceBeginning balance
Special payable307,170,000.00307,170,000.00
Total307,170,000.00307,170,000.00
ItemEnding balanceBeginning balance
Estimated expenses for early retired personnel214,288,788.88226,850,277.65
Total214,288,788.88226,850,277.65

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

ItemBeginning balanceEnding balanceCauses
Pending litigation74,482,931.6194,339,765.18Proceedings
Mine environment restoration and control14,778,754.7014,778,754.70
Total89,261,686.31109,118,519.88/
ItemBeginning balanceIncrease in the Current PeriodDecrease in the Current PeriodEnding balanceCauses
Government subsidy930,284,109.40431,010,797.9260,093,957.331,301,200,949.99
Rental fees collected in advance277,609,119.1236,053,552.2421,349,771.29292,312,900.07
Service charge collected in advance1,572,327.041,572,327.04
Total1,209,465,555.56467,064,350.1683,016,055.661,593,513,850.06/

Projects involved in government subsidies:

√ Applicable □ Not applicable

Unit: yuan Currency: CNY

Liability itemsBeginning balanceAmount of newly increased subsidies in current periodAmount included in non-operating income in current periodAmount included in other income in the current periodOther changesEnding balanceAsset-related/income-related
Special fund for energy saving and emission reduction.1,639,375.00457,500.001,181,875.00Asset related
Compensation for Construction of Interchange to Zero Interchange Section of Xiaoxujia Hub in Reconstruction and Expansion Project of Jinan-Qingdao Expressway300,000,000.00313,976,662.5025,559,066.52588,417,595.98Asset related
Cancel the subsidy for provincial boundary toll station projects102,794,135.426,846,698.3395,947,437.09Asset related
Special project fund for reconstruction of toll station of Lijin Yellow River Highway Bridge.10,680,000.0014,240,000.0082,297.4924,837,702.51
Enterprise agglomeration support fund5,000,000.005,000,000.00
Subsidy for Dalailong Railway Project30,000,000.002,626,728.1227,373,271.88Asset related
Subsidy for Yiyang railway westward relocation project559,092,633.3818,966,292.94540,126,340.44
Subsidy for track slab project16,822,953.72374,626.5616,448,327.16Asset related
Office relocation reward7,049,147.30180,747.376,868,399.93Asset related
Total930,284,109.40431,010,797.9260,093,957.331,301,200,949.99

52. Other non-current liabilities

□ Applicable √ Not applicable

53. Share Capital

√ Applicable □ Not applicable

Unit: yuan Currency: CNY

Beginning balanceIncrease and decrease of this change (+, -)Ending balance
Issue the new sharesStock offeringConversion of provident fund into sharesOthersSubtotal
Total number of shares4,811,165,857.004,811,165,857.00
Outstanding financial instrumentsBeginningIncrease in the Current PeriodDecrease in the Current PeriodEnding
QuantitiesBook valueQuantitiesBook valueQuantitiesBook valueQuantitiesBook value
Bohai trust plan2,000,000,000.002,000,000,000.00
Perpetual debt3,200,000,000.003,200,000,000.00
Total2,000,000,000.003,200,000,000.002,000,000,000.003,200,000,000.00
ItemBeginning balanceIncrease in the Current PeriodDecrease in the Current PeriodEnding balance
Capital premium (share premium)4,836,763,252.709,220,036.643,116,311,939.251,729,671,350.09
Other capital reserves18,429,300.0018,429,300.00
Total4,836,763,252.7027,649,336.643,116,311,939.251,748,100,650.09

56. Treasury stock

□ Applicable √ Not applicable

57. Other comprehensive income

√ Applicable □ Not applicable

Unit: yuan Currency: CNY

ItemBeginning balanceAmount incurred in current period.Ending balance
Accrual before the income tax in the current periodMinus: Amount included in other comprehensive incomes in the previous period and transferred to profits or losses for the current periodLess: included in other comprehensive income in the previous period and transferred to retained earnings in the current period.Minus: income tax expensesBelong to the parent company after taxAttribute 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 losses9,953,082.58-52,153,056.26-52,153,056.26-42,199,973.68
Including: other comprehensive income9,953,082.58-52,153,056.26-52,153,056.26-
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 income9,953,082.58-57,335,983.09-57,335,983.09-47,382,900.51

58. Appropriate reserve

√ Applicable □ Not applicable

Unit: yuan Currency: CNY

ItemBeginning balanceIncrease in the Current PeriodDecrease in the Current PeriodEnding balance
Safe production costs82,671,061.6916,222,137.303,238,742.4495,654,456.55
Total82,671,061.6916,222,137.303,238,742.4495,654,456.55
ItemBeginning balanceIncrease in the Current PeriodDecrease in the Current PeriodEnding balance
Statutory surplus reserves3,164,742,776.43224,206,066.703,388,948,843.13
Total3,164,742,776.43224,206,066.703,388,948,843.13
ItemCurrent periodPrevious period
Undistributed profits at the end of last period before adjustment17,975,791,829.9216,276,718,131.16
Total undistributed profit at the beginning of the adjustment period (increase +, decrease -)394,584,686.98317,793,490.49
Undistributed profits at the beginning of the period after adjustment18,370,376,516.9016,594,511,621.65
Plus: Net profits attributable to owners of the parent company in the current period2,038,999,018.133,126,071,417.08
Minus: Withdrawal of statutory surplus reserve224,206,066.70271,952,038.65
Withdrawal other common accumulation fund
Withdrawn general risk reserve
Common stock dividends payable1,828,243,025.661,068,786,407.72
Ordinary stock dividend transferred to equity
Dividends payable on other equity instruments102,651,577.469,298,121.56
Undistributed profits at the end of the period18,254,274,865.2118,370,546,470.80

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

ItemAmount incurred in current periodAmount incurred in previous period
IncomeCostIncomeCost
Main business11,182,923,943.237,520,580,755.2010,231,366,764.325,726,016,263.96
Other businesses182,240,837.9239,896,245.07183,183,361.8838,157,352.20
Total11,365,164,781.157,560,477,000.2710,414,550,126.205,764,173,616.16
Contract ClassificationOperating income (current year)Operating cost (current year)
Type of commodity
Main business11,182,923,943.237,520,580,755.20
including toll revenue in Shandong Province4,829,952,422.222,577,352,852.82
Toll revenue in Henan Province258,736,001.79136,713,829.82
Toll revenue of Hunan Province175,614,950.41161,461,293.41
Toll revenue in Hubei Province691,459,073.20341,564,105.44
revenue from railway transportation2,494,571,703.631,960,753,618.87
Revenue from sales of goods1,791,583,327.911,474,542,403.13
Revenue from project construction224,352,596.01198,432,758.23
Revenue from expressway trusteeship605,713,032.50560,513,537.11
Others110,940,835.56109,246,356.37
Other businesses182,240,837.9239,896,245.07
Including: Rental income82,225,399.9119,749,647.09
Others100,015,438.0120,146,597.98
Total11,365,164,781.157,560,477,000.27
Contract ClassificationOperating income (previous year)Operating cost (previous year)
Type of commodity
Main business10,231,366,764.325,726,016,263.96
including toll revenue in Shandong Province5,099,817,508.482,220,323,231.75
Toll revenue in Henan Province453,063,208.51153,136,023.07
Toll revenue of Hunan Province216,322,139.16166,788,260.13
Toll revenue in Hubei Province959,396,341.57362,092,086.65
revenue from railway transportation2,050,262,501.611,668,995,170.99
Revenue from sales of goods803,045,190.53575,750,073.70
Revenue from project construction51,958,017.9420,341,060.43
Revenue from expressway trusteeship511,942,321.26493,448,468.15
Others85,559,535.2665,141,889.09
Other businesses183,183,361.8838,157,352.20
Including: Rental income76,589,732.8118,877,442.07
Others106,593,629.0719,279,910.13
Total10,414,550,126.205,764,173,616.16
ItemAmount incurred in current periodAmount incurred in previous period
Urban maintenance and construction tax26,425,498.2925,705,609.29
Education surcharge19,442,962.1214,653,145.29
House property tax14,218,576.2617,914,135.61
Land use tax6,138,274.898,094,250.37
Vehicle and vessel use tax337,209.94392,437.18
Stamp duty9,848,491.177,401,120.56
Value-added tax on land199,775.12
Others2,759,320.358,339,333.66
Total79,170,333.0282,699,807.08

Unit: yuan Currency: CNY

ItemAmount incurred in current periodAmount incurred in previous period
Advertising expense232,741.40235,849.05
Operating cost2,445,032.313,702,144.43
Packing expense2,756,216.722,724,888.48
Transport expense1,714,332.325,810,211.49
Employee compensation2,110,908.813,631,490.44
Others1,350,941.98877,981.55
Total10,629,082.6416,982,565.44
ItemAmount incurred in current periodAmount incurred in previous period
Employee compensation350,668,007.31366,757,017.72
Depreciation and amortization expenses37,674,015.3051,859,695.97
Lease expenses11,139,054.8314,861,831.54
Agent fee31,424,287.9028,300,522.20
Others106,336,152.67117,216,413.25
Total537,241,518.01578,995,480.68
ItemAmount incurred in current periodAmount incurred in previous period
Material consumption2,038,351.141,940,561.27
Labor cost30,094,370.4918,417,516.52
Depreciation expense4,713,864.208,831,013.73
Technical service fee19,107,581.578,022,347.55
Others11,678,651.773,037,286.19
Total67,632,819.1740,248,725.26
ItemAmount incurred in current periodAmount incurred in previous period
Interest expense1,701,838,542.171,436,760,372.33
-: Interest income93,867,234.96-297,069,626.74
+: Exchange losses
Other expenditure836,831.772,393,584.69
Total1,608,808,138.981,142,084,330.28
ItemAmount incurred in current periodAmount incurred in previous period
Special fund for energy saving and emission reduction.457,500.00457,500.00
Compensation for Construction of Interchange to Zero Interchange Section of Xiaoxujia Hub in Reconstruction and Expansion Project of Jinan-Qingdao Expressway25,559,066.52
Cancel the subsidy for provincial boundary toll station projects6,763,543.33
Special project fund for reconstruction of toll station of Lijin Yellow River Highway Bridge.82,297.49
Enterprise agglomeration support fund5,000,000.00
Subsidy for Dalailong Railway Project2,626,728.12
Subsidy for Yiyang railway westward relocation project18,966,292.9421,029,376.60
Subsidy for track slab project374,626.56374,626.56
Office relocation reward180,747.374,867,397.57
Special fund for enterprises supported by the government.6,500,000.00
Subsidy for enterprise research and development741,300.006,086,000.00
2019 economic development contribution award300,000.00
Subsidies for stabilizing posts814,402.82154,213.13
Refund of individual income tax61,388.1562,229.72
Others343,384.97105,908.00
Total62,271,278.2739,637,251.58
ItemAmount incurred in current periodAmount incurred in previous period
Long-term equity investment income calculated by the equity method570,339,660.39376,523,816.81
Investment income from disposal of long-term equity9,316,362.59140,490,539.75
Investment income of trading financial assets during the holding period.493,378,222.82563,433,751.83
Dividend income of other equity instrument investment during holding period
Interest income of debt investment during holding period399,342,008.5267,634,504.06
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 lost408,936,576.90
Total1,472,376,254.321,557,019,189.35
ItemAmount incurred in current periodAmount incurred in previous period
Bad debt losses on notes receivable1,231,982.58-5,867,472.31
Bad debt loss of accounts receivable14,247,979.85-8,128,496.55
Bad debt loss of other receivables-53,490,660.30118,882,521.56
Total-38,010,697.87104,886,552.70
ItemAmount incurred in current periodAmount incurred in previous period
I. Bad debt losses
II. Inventory falling price loss and contract-52,733,558.21737,101.08
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-69,698,486.83737,101.08
ItemAmount incurred in current periodAmount incurred in previous period
Income from disposal of non-current asset1,892,517.97-3,338,999.77
Total1,892,517.97-3,338,999.77
ItemAmount incurred in current periodAmount incurred in previous periodAmount recorded in non-recurring profits and losses of the current period
Total of non-current asset disposal gains10,408,785.483,823,633.6910,408,785.48
Including: Gains from disposal of fixed assets202,738.023,823,633.69202,738.02
Government subsidy21,596,821.3222,229,600.0021,596,821.32
Income from highway assets and highway property compensations17,947,790.9719,334,117.4417,947,790.97
Other profits61,178,624.6943,698,493.2561,178,624.69
Total111,132,022.4689,085,844.38111,132,022.46

Government subsidies included in current profit and loss

√ Applicable □ Not applicable

Unit: yuan Currency: CNY

Subsidy projectAmount incurred in current period.Amount incurred in prior periodAsset-related/income-related
Reward for enterprises above designated size in service industry in 2019120,000.00Income related
Incentive funds19,670,000.0022,179,600.00Income related
Incentives (subsidies) related to the Investment Promotion Agreement of Kaifu District in 20191,688,100.00Income related
Others118,721.3250,000.00Income related
Total21,596,821.3222,229,600.00
ItemAmount incurred in current periodAmount incurred in previous periodAmount recorded in non-recurring profits and losses of the current period
Total of loss on disposal of non-current assets39,526,763.76127,808,502.2839,526,763.76
Including: Losses on disposal of fixed assets39,526,763.76127,808,502.2839,526,763.76
Donation4,300.00423,000.004,300
Penalty cost54,098.50129,834.4554,098.50
Others16,717,805.5438,904,947.6116,717,805.54
Total56,302,967.80167,266,284.3456,302,967.80
ItemAmount incurred in current periodAmount incurred in previous period
Current income tax expense776,477,846.861,118,091,982.00
Deferred income tax expense68,952,562.8780,855,006.11
Total845,430,409.731,198,946,988.11

√ Applicable □ Not applicable

Unit: yuan Currency: CNY

ItemAmount incurred in current period
Total profit2,984,865,809.58
Income tax expense calculated according to legal/applicable tax rate746,216,452.40
Impact of subsidiaries using different tax rates-13,112,297.62
Effect of income tax before adjustment35,958,902.13
Effect of non-taxable income-112,426,723.72
Effect of non-deductible costs, expenses and losses53,927,773.13
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 period146,610,134.50
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 expense845,430,409.72
ItemAmount incurred in current periodAmount incurred in previous period
Current account and deposit1,639,644,074.401,817,106,063.08
Government subsidy454,784,940.1877,087,539.32
Income from highway assets and highway property compensations17,947,790.9719,536,405.55
Interest income33,245,038.0536,474,923.87
Rental income91,868,691.7854,011,636.48
Others273,796,923.18125,896,562.42
Total2,511,287,458.562,130,113,130.72
ItemAmount incurred in current periodAmount incurred in previous period
Current account and deposit216,452,965.851,268,666,930.01
Selling expenses10,629,082.6417,699,800.48
Management expenses176,388,409.34160,507,385.90
Research and development (R&D) expenses32,824,584.487,836,479.39
Compensation for early opening to traffic20,847,871.42
Others421,552.066,042,412.35
Total436,716,594.371,481,600,879.55
ItemAmount incurred in current periodAmount incurred in previous period
Recovery of Loan from Puyuan Company534,921,186.42
Collect the funds from Shanghai Zhida4,586,476.1114,259,505.32
Recovery of Loan from the Group before Merger with the Rail Transit329,490,929.58144,411,072.73
Receivables from Kenxin Group173,267,045.05
Cash received from subsidiaries201,744,305.09
Total868,998,592.11533,681,928.19
ItemAmount incurred in current periodAmount incurred in previous period
Earnest money for equity acquisition400,000.00
Net cash received from disposal of subsidiaries10,441,593.13
Total10,841,593.13
ItemAmount incurred in current periodAmount incurred in previous period
Investment Fund for Capacity Expansion and Transformation of Dalailong600,000,000.00
Recovered bill security deposit23,611,355.51
Total600,000,000.0023,611,355.51
ItemAmount incurred in current periodAmount incurred in previous period
Repayment of Trust No. 1 Fund2,000,000,000.00
Pay for the equity transfer of Rail Transit3,487,254,636.00
Trust loan guarantee fund29,000,000.00
Underwriting fee for short-term securities lending10,663,814.225,075,113.39
Total5,497,918,450.2234,075,113.39
Supplementary dataAmount in current periodAmount in previous period
1. Adjust net profit to cash flows from operating activities:
Net Profits2,139,435,399.853,211,179,268.17
+: Asset impairment reserves69,698,486.83-737,101.08
Credit impairment loss38,010,697.87-104,886,552.70
Depreciation of fixed assets, loss of oil and gas assets and depreciation of productive biological assets1,101,004,665.47869,725,369.68
Amortization of intangible assets1,246,716,197.94939,800,629.07
Amortization of long-term prepaid expenses1,392,910.201,821,950.07
Loss from disposal of fixed asset, intangible asset and other long-term asset (marked with "-" for earnings)-1,892,517.975,589,391.15
Loss from retirement of fixed assets (earnings are listed with "-")29,117,978.28127,808,502.28
Loss from fair value change (earnings are listed with "-")
Financial expenses (earnings are listed with "-")1,701,838,542.171,503,913,620.30
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 "-")-63,286,909.6038,336,270.04
Increase in deferred income tax liabilities (decrease is listed with "-")133,126,721.9242,282,824.68
Decrease in inventories (increase is listed with "-")471,759,511.59-575,529,448.58
Decrease in operational receivables (increase is listed with "-")-19,959,368.562,242,927,497.40
Increase in operational payables (decrease in listed with "-")-1,065,498,986.89-281,620,931.06
Others
Net cash flow from operating activities4,309,087,074.786,463,592,100.07
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 cash2,189,250,756.041,769,343,057.09
Minus: Cash balance at the beginning of the period1,769,343,057.091,684,835,153.05
Plus: Ending balance of cash equivalents
Minus:Beginning balance of cash equivalents
Net increase in cash and cash equivalents419,907,698.9584,507,904.04
Amount
Cash or cash equivalents paid in the current period by business combination occurring in the current period1,376,700.00
Including Shandong Ludao Construction Engineering Co., Ltd.1,376,700.00
-: cash and cash equivalents held by subsidiaries on the purchased date567,754.98
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 subsidiaries808,945.02
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 subsidiaries10,441,593.13
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
ItemEnding balanceBeginning balance
I. Cash2,189,250,756.041,769,343,057.09
Where: Including: cash on hand77,179.92146,872.71
Bank deposits that can be used for payment at any time2,189,173,576.121,769,196,184.38
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 equivalents2,189,250,756.041,769,343,057.09
Where: Cash and cash equivalents of parent company or group, which use right is restricted for subsidiaries

√ Applicable □ Not applicable

Unit: yuan Currency: CNY

ItemEnding book valueRestriction reason
Monetary funds71,537,681.93frozen amount due to litigation, security deposit
Fixed assets30,790,608,704.29Pledge borrowing
Intangible assets262,560,662.30Mortgage loan
Fixed assets21,892,958.90Mortgage loan
Receivables financing57,000,000.00Pledged
Total31,203,600,007.42/
VarietyAmountPresented itemsAmount included in the profit and loss of the current period
Reward for enterprises above designated size in service industry in 2019120,000.00Non-operating income120,000.00
Incentive funds19,670,000.00Non-operating income19,670,000.00
Investment promotion awards of Kaifu District in 20191,688,100.00Non-operating income1,688,100.00
Special fund for energy saving and emission reduction.1,181,875.00Deferred income/other income457,500.00
Compensation for Construction of Interchange to Zero Interchange Section of Xiaoxujia Hub in Reconstruction and Expansion Project of Jinan-Qingdao Expressway588,417,595.98Deferred income/other income25,559,066.52
Cancel the subsidy for provincial boundary toll station projects95,947,437.09Deferred income/other income6,763,543.33
Special project fund for reconstruction of toll station of Lijin Yellow River24,837,702.51Deferred income/other income82,297.49
Highway Bridge.
Enterprise agglomeration support fundDeferred income/other income5,000,000.00
Subsidy for Dalailong Railway Project27,373,271.88Deferred income/other income2,626,728.12
Subsidy for Yiyang railway westward relocation project540,126,340.44Deferred income/other income18,966,292.94
Subsidy for track slab project16,448,327.16Deferred income/other income374,626.56
Office relocation reward6,868,399.93Deferred income/other income180,747.37
Subsidy for enterprise research and development741,300.00Other income741,300.00
2019 economic development contribution award300,000.00Other income300,000.00
Subsidies for stabilizing posts814,402.82Other income814,402.82
Refund of individual income tax5,053,293.99Other income61,388.15
Others1,333,424.88Non-operating income462,106.29
Total1,330,432,873.8183,868,099.59
Name of the AcquireeTime point for acquisition of shareCost for acquisition of shareProportion of share acquired (%)Method of share acquisitionDate of PurchaseReference for Determination of Purchased DateThe income of the Acquiree from the purchased date till the end of periodNet profit of the Acquiree from the purchased date till the end of period
Shandong Ludao Construction Engineering Co., Ltd.July 1, 20201,376,700.00100AcquisitionJuly 1, 2020Equity transfer procedures completed59,359,809.481,826,862.84

(2). Cost of business combination and goodwill

√ Applicable □ Not applicable

Unit: yuan Currency: CNY

Cost of business combinationShandong Ludao Construction Engineering Co., Ltd.
- Cash1,376,700.00
- 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 total1,376,700.00
-: fair value share of identifiable net assets acquired1,376,700.00
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 dateBook value on the purchased date
Assets:9,781,934.158,832,197.55
Monetary funds567,754.98567,754.98
Prepayment10,800.0010,800.00
Other receivables6,010,438.006,010,438.00
Stock378,675.81378,675.81
Other current assets Production159,494.61159,494.61
Fixed assets1,705,034.151,705,034.15
Intangible assets949,736.60
Liabilities:8,405,234.158,167,800.00
Deposit received8,167,800.008,167,800.00
Deferred income tax liabilities237,434.15
Net Assets1,376,700.00664,397.55
Where: Minority equity
Net assets acquired Production1,376,700.00664,397.55

Unit: yuan Currency: CNY

Name of the combined partyProportion of equity obtained in business combinationBasis for the constituting of business combination under the same controlDate of combinationDetermining basis for the combination dateIncome of combined party from the beginning of the year to the combination dayNet profits of combined party from the beginning of the year to the combination dayIncome of combined party during the period of comparisonNet 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 CompanyJune 30, 2020Equity transfer procedures completed1,674,002,364.59181,832,760.372,969,781,762.75145,464,496.57

(2). Combined cost

√ Applicable □ Not applicable

Unit: yuan Currency: CNY

Cost of business combinationShandong Hi-speed Rail Transit Group Co., Ltd.
- Cash3,487,254,636.00
- 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 combinationEnding of the previous period
Assets:9,688,146,963.477,663,235,365.39
Monetary funds478,680,736.10134,344,159.45
Notes receivable111,481,973.89
Receivable458,859,068.64209,717,407.92
Receivables financing179,877,623.78108,547,434.59
Prepayment192,349,174.52134,023,693.87
Other receivables1,285,554,347.07597,756,739.71
Stock141,865,223.86360,104,955.29
Contract assets83,672,971.07
Other current assets51,453,349.82101,810,150.13
Long-term equity investments416,000,000.00120,000,000.00
Other equity instrument investment331,626,837.00331,626,837.00
Investment real estates706,236.71
Fixed assets2,878,782,179.293,244,273,618.06
Construction in process873,144,034.59959,055,743.57
Intangible assets1,832,428,933.241,071,975,021.24
Long-term deferred expenses360,577.83373,996.83
Deferred income tax assets65,474,435.9563,578,521.55
Other non-current assets417,311,234.00114,565,112.29
Liabilities:5,657,590,382.384,676,422,514.91
Short-term loans134,500,000.0063,805,433.66
Notes payable68,982,756.2533,211,430.37
Payables438,783,491.62573,339,143.29
Deposit received51,062,538.77140,839,172.02
Contract liabilities91,835,418.41
Payroll payable50,005,045.8984,565,067.47
Taxes payable44,267,703.18148,361,545.69
Dividends payable30,202,210.6228,507,700.02
Other payables2,654,464,429.381,554,872,351.74
Other non-current liabilities due within one year68,338,238.1823,479,196.67
Other current liabilities7,609,324.19
Long-term Loans1,221,623,247.281,173,838,169.13
Long-term payroll payable100,467,203.9899,476,049.99
Special payable13,170,000.0013,170,000.00
Payables75,092,626.4689,261,686.31
Deferred Income6,035,445.19643,660,123.36
Deferred income tax liabilities-6,035,445.19
Net Assets4,030,556,581.092,986,812,850.48
Where: Minority equity2,308,295,588.471,832,161,487.40
Net assets acquired1,722,260,992.621,154,651,363.08

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 SubsidiaryPrincipal Place of BusinessRegistered PlaceNature of BusinessShareholding Ratio (%)Acquisition Method
DirectIndirect
Shandong Hi-Speed Investment Development Co., Ltd.ShandongShandongInvestment and development100.00Investment and establishment
Shandong Hi-speed Environmental Technology Co., Ltd.ShandongShandongEnvironmental protection industry60.01Investment and establishment
Shandong Hi-Speed Jidong Development Co., Ltd.ShandongShandongInvestment and60.00Investment and establishment
development
Shandong Hi-Speed (Shenzhen) Investment Co., Ltd.Guangdong ProvinceGuangdong ProvinceInvestment and development55.00Investment and establishment
Yantai Hesheng Real Estate Development Co., Ltd.ShandongShandongInvestment and development100.00Business combination not under common control
Shandong Hi-Speed Industrial Development Co., Ltd.ShandongShandongProperty management60.00Investment and establishment
Shandong Lijin Huanghe Highway and Bridge Co., Ltd.ShandongShandongHighway management65.00Business combination under same control
Shandong Hi-Speed Henan Development Co., Ltd.Henan ProvinceHenan ProvinceInvestment and development60.00Investment and establishment
Shandong Hi-Speed Henan Xuyu Road Co., Ltd.Henan ProvinceHenan ProvinceHighway management60.00Investment and establishment
Jiyuan City Jijin Expressway Co., Ltd.Henan ProvinceHenan ProvinceHighway management54.00Business combination not under common control
Hunan Hengshao Expressway Co., Ltd.HunanHunanHighway management70.00Business combination not under common control
Shandong Hi-Speed Hunan Development Co., Ltd.HunanHunanInvestment and development100.00Investment and establishment
Shandong Hi-Speed Qilu Construction Transport Administration Service Co., Ltd.ShandongShandongAgency service100.00Business combination under same control
Hubei Wujing Expressway Development Co., Ltd.Hubei provinceHubei provinceHighway management60.00Business combination under same control
Jinan Changying Jincheng Equity Investment Partnership (limited partnership)ShandongShandongEquity investment99.99Investment and establishment
Jinan Changying Jinhai Investment Partnership (Limited Partnership)ShandongShandongEquity investment100.00Investment and establishment
Jinan Jinming Investment Partnership (Limited Partnership)ShandongShandongEquity investment100.00Investment and establishment
Shenzhen Lupeng Investment Partnership (limited partnership)Guangdong ProvinceGuangdong ProvinceInvestment business100.00Investment and establishment
Qingdao Changying Jinpeng Equity Investment Partnership (Limited Partnership)ShandongShandongInvestment business30.7569.18Investment and establishment
Jinan Changying Jinyun Equity Investment Partnership (Limited Partnership)ShandongShandongInvestment business100.00Investment and establishment
Shandong Hi-Speed Sulianyun Technology Co., Ltd.ShandongShandongInvestment business100.00Investment and establishment
Shandong Hi-speed Rail Transit Group Co., Ltd.ShandongShandongRailway transport51.00Business combination under same control
Shandong Dalailong Railway Co., Ltd.ShandongShandongRailway transport41.01Business combination under same control
Shandong High Speed Railway Construction Equipment Co., Ltd.ShandongShandongRailway building materials17.85Business combination under same control
Shandong Ruitong Logistics Co., Ltd.ShandongShandongBusiness transportation35.70Business combination under same control
Shandong Shouping Railway Co., Ltd.ShandongShandongRailway transport30.48Business combination under same control
Shandong Ruiyuan Logistics Co., Ltd.ShandongShandongBusiness transportation33.15Business combination under same control
Shandong Hi-Speed Transportation Equipment Co., Ltd.ShandongShandongHighway building materials22.31Business combination under same control
Shandong Ludao Construction Engineering Co., Ltd.ShandongShandongConstruction service51.00Business combination not under common control

None.Other statements:

None.

(2). Major non-wholly-owned subsidiaries

√ Applicable □ Not applicable

Unit: yuan Currency: CNY

Name of SubsidiaryMinority shareholders’ shareholding ratioProfit and loss attributable to minority shareholders in the current periodDividends declared to minority shareholders in the current periodBalance of minority shareholders’ equity at the end of the period
Shandong Hi-Speed Henan Development Co., Ltd.40.00%11,122,124.8251,900,000.00352,659,828.47
Hunan Hengshao Expressway Co., Ltd.30.00%-55,308,471.00-264,115,799.51
Hubei Wujing Expressway Development Co., Ltd.40.00%15,292,075.371,126,625,052.84
Shandong Hi-speed Rail Transit Group Co., Ltd.49.00%159,128,765.16237,160,000.001,704,258,550.79
Shandong High Speed Railway Construction Equipment Co., Ltd.65.00%70,029,117.6226,021,564.05387,352,871.98
Shandong Dalailong Railway Co., Ltd.19.59%-13,670,107.6190,136,832.03
Name ofEnding balanceBeginning balance
SubsidiaryCurrent AssetsNon-current AssetsTotal AssetsCurrent LiabilitiesNon-current LiabilitiesTotal liabilitiesCurrent AssetsNon-current AssetsTotal AssetsCurrent LiabilitiesNon-current LiabilitiesTotal liabilities
Shandong Hi-Speed Henan Development Co., Ltd.245,107,807.992,481,509,954.212,726,617,762.20362,394,469.171,317,933,320.631,680,327,789.80493,611,411.072,511,643,267.483,005,254,678.55393,826,302.041,538,292,787.081,932,119,089.12
Hunan Hengshao Expressway Co., Ltd.101,149,803.214,154,981,984.804,256,131,788.012,288,507,062.602,848,010,723.765,136,517,786.3691,070,317.344,279,221,747.534,370,292,064.872,160,794,414.542,905,522,078.695,066,316,493.23
Hubei Wujing Expressway Development Co., Ltd.117,198,138.548,350,322,664.968,467,520,803.50844,155,024.454,806,803,146.965,650,958,171.4169,082,213.218,520,663,387.648,589,745,600.85512,392,174.405,299,020,982.785,811,413,157.18
Shandong Hi-speed Rail Transit Group Co., Ltd.2,512,483,290.567,561,551,912.3610,074,035,202.923,778,159,642.412,124,092,738.175,902,252,380.581,757,786,514.855,905,448,850.547,663,235,365.392,650,981,040.932,025,441,473.984,676,422,514.91
Shandong High Speed Railway Construction Equipment Co., Ltd.517,537,220.37395,203,898.36912,741,118.73313,323,129.6219,337,965.96332,661,095.58448,836,612.75308,476,037.54757,312,650.29223,997,898.6920,938,657.01244,936,555.70
Shandong Dalailong Railway277,602,671.172,681,293,935.842,958,896,607.011,548,999,576.62949,909,561.232,498,909,137.85136,251,379.432,007,067,715.952,143,319,095.38684,340,037.07932,170,466.821,616,510,503.89

Co., Ltd.

Name of SubsidiaryAmount incurred in current periodAmount incurred in previous period
Operation revenueNet ProfitsTotal Comprehensive IncomeCash Flow from Operating ActivitiesOperation revenueNet ProfitsTotal Comprehensive IncomeCash Flow from Operating Activities
Shandong Hi-Speed Henan Development Co., Ltd.264,515,118.3525,054,382.9725,054,382.97128,921,590.99456,296,607.23140,771,415.02140,771,415.02339,660,954.18
Hunan Hengshao Expressway Co., Ltd.175,878,961.46-184,361,569.99-184,361,569.99158,509,407.08216,350,710.59-189,559,163.72-189,559,163.72144,654,111.87
Hubei Wujing Expressway Development Co., Ltd.712,055,229.6838,230,188.4238,230,188.42483,269,403.28974,463,582.34298,708,441.22298,708,441.22781,130,344.54
Shandong Hi-speed Rail Transit Group Co., Ltd.4,344,913,670.72317,061,532.24317,061,532.2468,974,494.222,969,781,762.75145,464,496.57144,964,498.83962,541,550.94
Shandong High Speed Railway Construction Equipment Co., Ltd.693,480,603.39107,737,104.03107,737,104.0387,470,443.48624,222,722.2872,319,473.0172,319,473.0146,124,860.55
Shandong Dalailong Railway Co., Ltd.332,676,485.93-69,781,049