Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Guangdong Provincial Expressway Development Co., Ltd.
2017 Annual Report
March 2018
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
I. Important Notice, Table of Contents and Definitions
The Board of Directors and the directors, Supervisory Committee and supervisors and Senior Executives of the
Company hereby warrant that at the year , there are no misstatement, misleading representation or important
omissions in this report and shall assume joint and several liability for the authenticity, accuracy and completeness
of the contents hereof.
Mr.Zheng Renfa, The Company leader, Mr. Wang Chunhua, General Manager, Mr. Fang Zhi, Chief financial
officer and the Ms.Zhou Fang, the person in charge of the accounting department (the person in charge of the
accounting )hereby confirm the authenticity and completeness of the financial report enclosed in this annual
report.
All the directors attended the board meeting for reviewing the Annual Report.
The toll revenues of Expressway is main source of the major business income of the company , The charge
standard of vehicle toll must be submitted to the same level people's government for review and approval after the
transport regulatory department of province, autonomous region or municipality directly under the central
government in conjunction with the price regulatory department at the same level consented upon examination.
Therefore, the adjustment trend of the charge price and the charge price if has the corresponding adjustment in the
future price level when the cost of the company rises still depend on the approval of relevant national policies and
government departments, and the company isn't able to make timely adjustment to the charge standard in
accordance with the its own operation cost or the change of market supply demand. So, the change of charge
policy and the adjustment of charge standard also have influence on the expressways operated by the company to
some extent. So, the charging policy changes and charges adjustment will affect the highways operation of the
company.
The profit distribution proposal reviewed and approved by the boarding meeting was summarized as follows:
2,090,806,126 for the base, the Company would distribute cash dividend to all the shareholders at the rate of
CNY5.06 for every 10 shares (with tax inclusive) , 0 bonus shares（including tax）and no reserve would be
converted into share capital.
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Table of Contents
I.Important Notice, Table of contents and Definitions
II. Basic Information of the Company and Financial index
III. Outline of Company Business
IV. Management’s Discussion and Analysis
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about Directors, Supervisors and Senior Executives
IX. Administrative structure
X. Corporate Bond
XI. Financial Report
XII. Documents available for inspection
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Definition
Refers
Terms to be defined Definition
to
Refers
Reporting period, This year January 1, 2017 to December 31, 2017
to
Refers The annual report of the company was approved by the board of directors
Reporting date
to on 2017, that is, March 27, 2018
Refers
YOY Compared with 2016
to
Refers
The Company /This Company Guangdong Provincial Expressway Development Co.,Ltd.
to
Refers
Communication Group Guangdong Communication Group Co., Ltd.
to
Refers
Construction Company Guangdong Highway Construction Co., Ltd.
to
Poly Real Estate Refers Poly Real Estate (Group )Co., Ltd.
Refers
Technology Company Guangdong Expressway Technology Investment Co., Ltd
to
Refers
Fokai Company Guangdong Fokai Expressway Co., Ltd.
to
Refers
Guangfo Company Guangdong Guangfo Expressway Co., Ltd.
to
Refers
Guangzhu Traffic Guangzhou Guangzhu Traffic Investment Management Co., Ltd.
to
Refers
Guangzhu East Company Jingzhu Expressway Guangzhu Section Co., Ltd.
to
Everbright Bank Refers China Everbright Bank Co., Ltd.
Guoyuan Securities Refers Guoyuan Securities Co.,ltd.
Guangdong Provincial Expressway Development Co.,Ltd. issues shares
Refers
Major assets restructuring and uses cash to purchase assets and raise counterpart funds and Related
to
transaction
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
II. Basic Information of the Company and Financial index
1．Company Information
Stock abbreviation: Guangdong Expressway A,B Stock code： 000429、200429
Stock exchange for listing Shenzhen Stock Exchange
Name in Chinese 广东省高速公路发展股份有限公司
Chinese Abbreviation 粤高速
English name (If any) Guangdong Provincial Expressway Development Co.Ltd.
English Abbreviation (If any) GPED
Legal Representative Zheng Renfa
Registered address 85 Baiyun Road, Guangzhou, Guangdong Province
Postal code of the Registered
Address
Office Address 45-46/F, Litong Plaza, No.32, Zhujiang East Road, Zhujiang New City, Tihe Disrtict , Guangzhou
Postal code of the office
address
Internet Web Site www.gpedcl.com
E-mail ygs@gdcg.cn
2. Contact person and contact manner
Board secretary Securities affairs Representative
Name Yang Hanming Liang Jirong
46/F, Litong Plaza, No.32, Zhujiang East 45/F, Litong Plaza, No.32, Zhujiang East
Contact address Road, Zhujiang New City, Tihe Disrtict , Road, Zhujiang New City, Tihe Disrtict ,
Guangzhou Guangzhou
Tel 020-29004619 020-29004523
Fax 020-38787002 020-38787002
E-mail Hmy69@126.com 139221590@qq.com
3. Information disclosure and placed
Newspapers selected by the Company for information Securities Times, China Securities, Shanghai Securities Daily and
disclosure Hongkong Commercial Daily.
Internet website designated by CSRC for publishing
www.cninfo.com.cn
the Annual report of the Company
The place where the Annual report is prepared and
Securities affair Dept of the Company
placed
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
4.Changes in Registration
Organization Code 91440000190352102M
Changes in principal business activities
No change
since listing (if any)
On November 2000, In accordance with Cai Guan Zi (2008) No. 109 Document of
Ministry of Finance and Yue Ban Han (2000) No. 574 Document of General Office of
Guangdong People's Government, the state-owned shares of Guangdong Expressway
originally entrusted to Guangdong Expressway Company (now renamed as
Changes is the controlling shareholder in
\"Guangdong Provincial Expressway Co., Ltd.\") for management were transferred to
the past (is any)
Guangdong Communication Group Co., Ltd. for holding and management in
November 2000. After the transfer of state-owned shares, Guangdong Communication
Group Co., Ltd. became the largest shareholder of the Company. The nature of equity
was defined as state-owned shares.
5. Other Relevant Information
CPAs engaged
Name of the CPAs Guangdong Zhengzhong Zhujiang Certified Public Accountants Co., Ltd.
Office address： 10/F,Yuehai Group Building, No.555 Dongfeng East Road, Guangzhou
Names of the Certified Public Feng Kuncong, Xu Jihong
Accountants as the signatiries
The sponsor performing persistant supervision duties engaged by the Company in the reporting period.
□ Applicable√ Not applicable
The Financial advisor performing persistant supervision duties engaged by the Company in the reporting period
√ Applicable □Not applicable
Advisor Name Office address Representatives Period of supervision and guide
North Unit, No.8 Zhuoyue TimeS
July 8,2016 to December
CITIC Securities Co., Ltd. Square(II) , 3 Road Central,Futian Li Yuan, Cai Yong
31,2017
District, Shenzhen
6.Summary of Accounting data and Financial index
Whether it has retroactive adjustment or re-statement on previous accounting data
√Yes □ No
Retroactive adjustment or restatement of reasons
Accounting policy change
In RMB
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Changed over
2016
last year（％）
After
Before adjustment After adjustment Before adjustment After adjustment
adjustment
Operating income（RMB） 3,089,055,399.21 2,825,049,808.36 2,825,049,808.36 9.35% 1,545,498,589.11 2,657,616,508.59
Net profit attributable to the
shareholders of the listed 1,509,922,398.70 1,001,205,945.39 1,001,205,945.39 50.81% 469,386,906.79 696,100,201.88
company（RMB）
Net profit after deducting of
non-recurring gain/loss
1,271,993,450.05 846,981,077.52 846,981,077.52 50.18% 442,162,503.47 449,814,058.26
attributable to the shareholders
of listed company（RMB）
Cash flow generated by
2,194,989,925.35 1,924,259,958.28 1,924,259,958.28 14.07% 996,993,291.19 1,705,886,449.05
business operation, net（RMB）
Basic earning per
0.72 0.52 0.52 38.46% 0.37 0.40
share(RMB/Share)
Diluted gains per
share(RMB/Share)(RMB/Share 0.72 0.52 0.52 38.46% 0.37 0.40
)
Weighted average ROE(%) 17.69% 14.18% 14.18% 3.51% 9.22% 12.38%
Changed over
End of 2016 End of 2015
last year（％）
End of 2017
After
Before adjustment After adjustment Before adjustment After adjustment
adjustment
Gross assets（RMB） 16,523,315,093.72 16,072,445,216.59 16,072,445,216.59 2.81% 12,107,767,967.86 15,126,912,516.70
Net assets attributable to
shareholders of the listed 9,023,071,118.45 8,289,020,301.39 8,289,020,301.39 8.86% 5,209,289,822.59 5,855,404,300.43
company（RMB）
Reasons of accounting policy change and correction of accounting error
In accordance with requirements of the Notice Concerning Printing of the Revised Accounting Standards for
Business Enterprises No. 16- Governmental Subsidies (CK[2017] No.15), the company shall include the
governmental subsidies related to the enterprise daily activities into the other income or offset relevant costs
subject to the economic business property; and include those irrelevant to the enterprise daily activities into the
non-business income. Therefore, the company shall adopt the prospective application for such accounting policy
change, which will not produce any influence on profits and losses, total assets and net assets listed in the current
and previous periods.
Pursuant to the Notice on the Revision and Issuance of the Format for General Enterprise Financial Statements
(Cai Kuai [2017] No.30), the gains and losses on the disposal of non-current assets and the gains and losses of
non-monetary asset exchange previously stated in \"Non-operating income\" and \"Non-operating expenses\" are
required to be presented in the \"Gains on disposal of assets\". Accordingly, the Company applied retrospective
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
adjustment method to the change of such accounting policy, reduced non-operating income by
RMB10,105,140.34 in 2016 and increased gains on disposal of assets by RMB10,105,140.34 in 2016, which
would not affect the net profit presented in the previous period.
7.The differences between domestic and international accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed
in the financial reports of differences in net income and net assets.
□ Applicable□√ Not applicable
Nil
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.
□ Applicable √Not applicable
Nil
8.Main Financial Index by Quarters
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 708,861,624.37 731,360,939.37 822,526,484.69 826,306,350.78
Net profit attributable to the
286,719,172.39 606,128,840.14 384,780,778.72 232,293,607.45
shareholders of the listed company
Net profit after deducting of
non-recurring gain/loss attributable
286,448,939.47 355,484,660.96 384,692,818.22 245,367,031.40
to the shareholders of listed
company
Net Cash flow generated by
479,844,717.92 542,547,517.45 622,431,923.01 550,165,766.97
business operation
Whether significant variances exist between the above financial index or the index with its sum and the financial
index of the quarterly report as well as semi-annual report index disclosed by the Company.
□ Yes √No
9.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Items Amount (2017) Amount (2016) Amount (2015) Notes
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Non-current asset disposal
gain/loss(including the write-off part for -2,745,683.68 8,644,766.55 21,188,094.05
which assets impairment provision is made)
Govemment subsidies recognized in
currentgain and loss(excluding those closely
385,932.17 704,645.87 480,000.00
related to the Company’s business and
granted under the state’s policies)
Current net gains and losses occurred from
period-begin to combination day by
102,025,476.76 219,061,740.30
subsidiaries resulting from business
combination under common control
It receives the
compensation
59,995,667.68 yuan
Operating income and expenses other than
61,458,075.96 62,762,574.05 24,879,481.73 for early termination
the aforesaid items
of charging for
Jiujiang Bridge in the
current period.
Other non-business income and expenditures
854,210.29
other than the above
The department
confirms the deferred
income tax totaling
Less:Amount of influence of income tax -178,668,186.37 17,954,525.92 11,529,933.00 193.4147 million yuan
for losses of previous
years in the current
period.
Amount of influence of minority
-162,437.83 1,958,069.44 8,647,449.75
interests(after tax)
Total 237,928,948.65 154,224,867.87 246,286,143.62 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
III. Business Profile
Ⅰ.Main Business the Company is Engaged in During the Report Period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
The Company is an infrastructure industry, with main business in developing and operating expressway and big
bridges. It is one of the main institutions of developing expressway and big bridge in Guangdong Expressway
System. The expressway industry is the industry helped by government.
The Company is mainly engaged in tolling and maintenance of Guangfo Expressway, Fokai Expressway and
Jingzhu Expressway Guangzhu Section investment in technological industries and provision of relevant
consultation while investing in Shenzhen Huiyan Expressway Co., Ltd., Guangzhou Guanghui Expressway Co.,
Ltd.,Guangdong Jiangzhong Expressway Co., Ltd., Zhaoqing Yuezhao Expressway Co., Ltd.,Ganzhou Kangda Ex
pressway , Ganzhou Gankang Expressway Co., Ltd.,Guangdong Yueke Technology Micro Loan Co., Ltd.,Guangd
ong Guangle Expressway Co.,Ltd.and Guoyuan securities Co.,Ltd. As of the end of the reporting period, the
company’s share-controlled expressway is 158.12 km, and the share-participation expressway is 684.20 km, and
according to the equity ratio, after the conversion calculation, the total mileage is 273.05 km.
Ⅱ.Major Changes in Main Assets
1. Major Changes in Main Assets
Main assets Major changes
An increased by RMB 826 million and 37.21% over the beginning of the year, Mainly due
Equity assets to the comprehensive impact of the decrease of dividend distribution from the share-participating
companies including Guoyuan Securities and the increase of investment income.
A decreased by RMB 780 million and 8.4% over the beginning of the yea，Mainly due to
Fixed assets
making depreciation of Guangzhu Dong, Guangfo and Fokai Company in the current period.
Intangible assets No significant change.
An increased by RMB 207 million and138.58% over the beginning of the year, Mainly due
Construction in process
to the impact of the expansion project of Fokai Expressway Sanbao to Shuikou Section.
A decreased by RMB 240 million and 9.23% over the beginning of the yea，Mainly due to
Monetary funds the combined impact of payment of investment, operating accumulation, investment dividends of
share-participating units, the repayment of bank loans and the company's distribution of dividends.
An increased by RMB 52 million and127.73% over the beginning of the year, Mainly due
Account receivable to the combined impact of the increase in the to-be-split toll charges of the toll collection center and the
increase in sales of technology companies resulting in an increase in the ending balance
Available for sale An increased by RMB 33 million and1.92% over the beginning of the year, The share price
financial assets of Everbright Bank held by the Company went up, resulting in an increase of the fair value at the end of
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
the period.
2. Main Conditions of Overseas Assets
□ Applicable √Not applicable
III.Analysis On core Competitiveness
Whether or not the Company complies with disclosure requirement of the special industry
No
The toll revenue of expressway industry mainly depends on the regional economic development. The
regional economy is the critical factor that influences the traffic volume. The Guangfo expressway and the Fokai
expressway, controlled by the company, are part of the National Expressway Network Planning-“Five vertical and
seven horizontal”, The share-controlled Beijing-Zhuhai Guangzhu Section Expressway is a fast and convenient
expressway.and many of the company’s equity-participation expressways that are part of the main skeleton of the
Guangdong Provincial Expressway Planning-“Ten vertical and five horizontal”, which provides a strong guarantee
for stable traffic volume. Meanwhile, the regional economy is the critical factor that influences the traffic volume,
as Guangdong province is the economically developed region, with years’ continuous high growth of GDP, so that
provides the stable rising demand for the company.
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
IV. Management’s Discussion and Analysis
I. General
In 2017，The board of directors of the Company actively implemented all resolutions of shareholders’
general meeting, duly performed its duties，Guiding by the strategic layout of \"two platforms”, the management of
the Company centred on the overall goal of \"strengthening and being the best\", greatly enhanced the operating
efficiency, steadily promoted the transformation and upgrading, and successfully completed all the tasks during
the year.
1. In 2017, the company completed the development of the target. 2017 to achieve operating income of 3.089
billion yuan to complete the target value of 3.085 billion yuan by 100.13%; to achieve operating costs of 1.247
billion yuan to complete the target value of 1.250 billion yuan by 99.76%; to achieve investment income of 448
million yuan to complete the target value of 444 million yuan by100.90%.
2.Perfecting the self-construction of the board of directors and continuously strengthening the, corporate
governance.The board of directors totally convened and organized 4 general shareholder meetings which all
adopted a combination of on-site and online voting method to convene, so that adequately protected
the-right-to-know and voting rights of the shareholders particularly for minority shareholders, therefore the rights
and interests of investors were protected.
3.Continually enhancing the construction of internal control system
In 2017, the company’s board of directors conscientiously performed the guidance, evaluation and management so
forth responsibilities and continually enhanced the construction of internal control system and continually
engaged the external audit agency for the company’s annual internal-control audit. As to the reasonable
suggestions provided by the external audit agency on internal control system, daily operations and managements,
finance and bushiness, the company’s board of directors had organized relevant departments and related
companies for seriously rectifying and improving to ensure the relevant risks were effectively controlled.
4. Achieved gradual results in the absorption and merger. In order to improve the financing ability and the capital
utilization efficiency of Guangdong Expressway, reduce the management hierarchy and realize the further
integration of assets, the Company started the work to absorb the Fokai Company-a wholly-owned subsidiary of
the Company. At the end of the reporting period, the work including the financial settlements, staffing, Real Estate
and land transfer, the signing of counter-guarantee agreement with Transportation Group and the change of
registration of pledges have been completed; currently, the follow-up work such as tax settlement and transfer of
assets is progressing steadily.
5. The transfer-back of property rights of Zhuhai Section of Guang’ao Expressway progressed smoothly. As the
key supervision project of Guangdong Provincial Government, the transfer-back of Guangdong-Macao
Expressway Zhuhai Section's 4.213 km asset was actively promoted by the company, with that the work related to
the asset transfer-back including the estimate of traffic volume and toll income, asset valuation and the book value
of asset, simulated profit statement identification, the special legal opinion document, the preparation of the
intermediary report and the corresponding report review were completed.
6. The Investment in Guoyuan Securities Directional Add-issuance project was fulfilled. According to the
agreement between the two parties, RMB 800 million was invested in last October based on the price of 10.05
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
yuan / share and subscribed 79.6 million Guoyuan Securities shares-which were listed on the Shenzhen Stock
Exchange (with restrictive sale-period of 3 years); as of December 31, 2017, the book value got floating profit of
RMB 79.6 million.
7. The establishment of equity platform. During the reporting period, Guangdong Yuegao Capital Investment
(Hengqin) Co., Ltd-a wholly-owned subsidiary-was incorporated with main business covering finance,
finance-similar, energy saving and environmental protection, new energy and intelligent transportation sectors.
Relying on the investment platform, it has completed several feasibility study reports on a number of equity
investment projects.
8. Orderly development of land along the expressways. During the reporting period, according to the \"1 + 4\"
industrial development layout of the Company, Guangdong Provincial Expressway Development Co., Ltd
Resources Development Branch was incorporated to take charge the development of commercial resources such
as land along the expressways in Guangdong Expressway System, and to actively carry out the work of
revitalizing and utilization of land resources in stock, so as to realize the maximum value of land resources and
property development as our efforts can.
II. Main business analysis
1. General
The Company is an infrastructure industry, with main business in developing and operating expressway and big
bridges. It is one of the main institutions of developing expressway and big bridge in Guangdong Expressway
System. The expressway industry is the industry helped by government.
In the report period, the vehicle traffic and toll income of the controlled subsidiaries and joint ventures of
the Company are as follows:
Volume of vehicle Increase Toll income in 2017 Increase/Decrease(%)
traffic in 2017 /Decrease(%) （RMB’0000）
vehicles)
Guangfo Expressway 6,263.37 8.65% 43,490.52 10.62%
Fokai Expressway 6,292.05 17.84% 125,345.35 6.16%
Jingzhu Expressway 7,897.42 13.03% 129,093.29 11.38%
Guangzhu Section
Huiyan Expressway 3,814.14 6.25% 23,245.46 4.88%
Guangzhao Expressway 2,998.08 -6.68% 50,789.56 -14.51%
Guanghui Expressway 5,756.34 16.43% 182,055.02 6.57%
Jiangzhong Expressway 5,526.02 18.13% 45,701.62 10.64%
Kangda Expressway 295.71 4.63% 24,095.25 -3.03%
Gangkang Expressway 342.42 28.59% 13,970.32 -8.33%
Guangle Expressway 2,350.39 15.82% 297,970.32 7.64%
The overall situation: Except Guangzhao Expressway ,Kangda Expressway and Gankang expressway, the
tolls of the other expressways all showed various extent of growth compared to 2016. Guanghui Expressway
Jingzhu Expressway and Jiangzhong Expressway all have the year-on-year growth more than 10%; the
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
year-on-year growth rate of Fokai Expressway,Guanghui Expressway Guangle Expressway and Huiyan
Expressway all are between 5%-10%; the growth rate of Guanghui Expressway is only 2.15%; while the growth
rate of Guangzhao Expressway,Kangda Expressway and Gangkang Expressway respectively fell14.51%,3.03%
and 8.33% compared with last year.
1. Guangfo Expressway. Since August 2017, the circumjacent road-Foshan first ring road implemented the traffic
restriction of trucks, so a large number of trucks diverted to Guangfo Expressway, resulting in a substantial
increase in truck traffic and income.
2. Guangzhu section of Beijing-Zhuhai Expressway. Impacted by some vehicle’s bypassing to take
Guangzhou-Zhuhai Expressway Guangzhu section due to the closure of Hongqili Bridge, the traffic and tolls of
the section increased over the same period of the previous year.
3. Jiangzhong Expressway. Influenced by such factors as overhaul engineering of Jiang He Expressway, the
second-phase maintenance of Shakou Bridge and Shijiaokou Bridge of State Highway 105, the opening of the
whole line of Guangzhong Jiang Expressway Phase I and Jiangluo Expressway, thee was a large increase in traffic
volume and tolls.
4. Guangzhao Expressway. Firstly, affected by the new opening of the circumjacent expressways of Jiangluo
Expressway and Guangfozhao Expressway, the traffic volume partly was diverted; second, the implementation of
temporary traffic control measures-namely restricting the passage of large trucks-at Baitu toll station exit at
Zhaoqing Bridge and the expansion and relocation project of Ziyun road had a negative impact; thus, the traffic
volume and tolls both got a certain decline.
5. Kangda. Expressway Since the full completion of the reconstruction of Dayu Section of National Highway 323
in August, the number of logistics freight vehicles increased in the national high way, with large number of trucks
of Jiangxi-place plate or Anhui-place plate changed to take the free national highway; and affected by the opening
of Ning-Ding Expressway in early 2017 and by the diversion effect of Daguang Expressway and Longyong
Expressway, the toll income was slightly declined YOY.
6.Gankang Expressway. Due to the pavement maintenance of Huichang section of the 323 National Road around
October, the influence of freight traffic diversion is bigger. The result is that the Gan Kang expressway has a
positive impact, but the traffic volume has increased, but the toll income has decreased.
2. Revenue and cost
(1)Component of Business Income
In RMB
2017
Increase /decrease
Amount Proportion Amount Proportion
Total operating
3,089,055,399.21 100% 2,825,049,808.36 100% 9.35%
revenue
Industry
Highway
2,979,291,622.84 96.45% 2,732,376,001.73 96.72% 9.04%
transportations
Other 109,763,776.37 3.55% 92,673,806.63 3.28% 18.44%
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
2017
Increase /decrease
Amount Proportion Amount Proportion
Prodect
Highway
2,979,291,622.84 96.45% 2,732,376,001.73 96.72% 9.04%
transportations
Other 109,763,776.37 3.55% 92,673,806.63 3.28% 18.44%
Area
Guangfo
434,905,187.39 14.08% 393,144,923.40 13.92% 10.62%
Expressway
Fokai Expressway 1,253,453,513.48 40.58% 1,180,190,342.35 41.78% 6.21%
Jingzhu Expressway
1,290,932,921.97 41.79% 1,159,040,735.98 41.03% 11.38%
Guangzhu Section
Other 109,763,776.37 3.55% 92,673,806.63 3.28% 18.44%
(2)Situation of Industry, Product and District Occupying the Company’s Business Income and Operating Profit
with Profit over 10%
√ Applicable □Not applicable
Whether or not the Company complies with disclosure requirement of the special industry
No
In RMB
Increase/decrease Increase/decrease Increase/decrease
of revenue in the of business cost of gross profit
Gross profit
Turnover Operation cost same period of over the same rate over the same
rate(%)
the previous period of period of the
year(%) previous year (%) previous year (%)
Industry
Highway
2,979,291,622.84 1,176,847,110.44 60.50% 9.04% -3.63% 5.19%
transportations
Prodect
Roll revenue 2,979,291,622.84 1,176,847,110.44 60.50% 9.04% -3.63% 5.19%
Area
Guangfo
434,905,187.39 123,689,751.79 71.56% 10.62% -54.38% 40.52%
Expressway
Fokai
1,253,453,513.48 677,343,877.41 45.96% 6.21% 13.59% -3.51%
Expressway
Jingzhu
Expressway
1,290,932,921.97 375,813,481.24 70.89% 11.38% 6.22% 1.41%
Guangzhu
Section
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main
business based on latest on year’s scope of period-end.
□ Applicable √Not applicable
(3)Whether the Company’s Physical Sales Income Exceeded Service Income
□ Yes √ No
(4)Degree of Performance of the Significant Sales Contract Signed up to this Report Period
□ Applicable √Not applicable
(5)Component of business cost
Industry category
In RMB
2017
Industry category Proportion in the Proportion in the Increase/Decrease
Items
Amount operating costs Amount operating costs (%)
(%) (%)
Highway Depreciation and
809,040,484.70 64.87% 875,609,973.92 68.35% -7.60%
transportations Amortized
Highway Out of pocket
367,806,625.74 29.49% 345,622,032.12 26.98% 6.42%
transportations expenses
Other Other 70,275,242.91 5.63% 59,800,554.46 4.67% 17.52%
(6)Whether Changes Occurred in Consolidation Scope in the Report Period
√Yes □No
The Company had 6 subsidiaries included in the scope of consolidation in 2017. The scope of the consolidated
financial statements increased by 1 compared with the previous period-for having the newly established enterprise.
On August 3, 2017, the Company established a wholly-owned subsidiary, Guangdong Yuegao Capital Investment
(Hengqin) Co., Ltd., which was newly added into the scope of consolidation in 2017.
(7)Relevant Situation of Significant Changes or Adjustment of the Business, Product or Service in the
Company’s Report Period
□ Applicable √Not applicable
(8)Situation of Main Customers and Main Supplier
□ Applicable √Not applicable
3.Expenses
In RMB
Increase/Decrea
2017 2016 Notes
se(%)
Administration
189,585,575.97 189,789,891.95 -0.11%
expenses
Financial expenses 247,306,751.08 340,854,007.43 -27.44% Comprehensive impact of interest
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
bearing debt and interest rate reduction
4. Research and Development
√ Applicable □Not applicable
Objective: To establish a mode based on the mobile phone path recognition + mobile payment, named as \"blue channel\", or BTC for
short.
Progress: System Development & Testing.
Planned to be achieved: pass the real car test in several road sections of West and East Guangdong part of Expressways within
Guangdong province
R & D investment
2017 2016 Increase /decrease
Number of Research and Development
28 19 47.37%
persons (persons)
Proportion of Research and
1.24% 1.34% -0.10%
Development persons
Amount of Research and Development
9,773,866.38 6,171,805.27 58.36%
Investment (In RMB)
Proportion of Research and
Development Investment of Operation 0.32% 0.22% 0.10%
Revenue
Amount of Research and Development
0.00 0.00 0.00%
Investment Capitalization (In RMB)
Proportion of Capitalization Research
and Development Investment of 0.00% 0.00% 0.00%
Research and Development Investment
The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying the
Business Income Year on Year
□ Applicable √Not applicable
Explanation of the Reason for Substantial Changes in the Research and Development Input’s Capitalization Rate
and Its Reasonableness
□ Applicable √ Not applicable
5.Cash Flow
In RMB
Items 2017 2016 Increase/Decrease(%)
Subtotal of cash inflow received
3,236,665,403.26 2,959,887,922.64 9.35%
from operation activities
Subtotal of cash outflow received 1,041,675,477.91 1,035,627,964.36 0.58%
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
from operation activities
Net cash flow arising from
2,194,989,925.35 1,924,259,958.28 14.07%
operating activities
Subtotal of cash inflow received
484,922,170.62 532,485,061.86 -8.93%
from investing activities
Subtotal of cash outflow for
1,229,007,515.09 2,278,731,726.67 -46.07%
investment activities
Net cash flow arising from
-744,085,344.47 -1,746,246,664.81 -57.39%
investment activities
Subtotal cash inflow received
1,838,277,777.78 4,131,505,163.11 -55.51%
from financing activities
Subtotal cash outflow for
3,530,866,387.00 2,905,344,885.32 21.53%
financing activities
Net cash flow arising from
-1,692,588,609.22 1,226,160,277.79 -238.04%
financing activities
Net increase in cash and cash
-240,236,943.83 1,403,650,367.40 -117.12%
equivalents
Notes to the year-on-year change of the relevant data
√Applicable □ Not applicable
1. The Subtotal of cash outflow received from operation activities decreawsed by 46.07% year-on-year，Mainly
due to the payment of purchase of Fokai equity in 803 million and the purchase of creditor's rights to Guangzhou
Dong held by Construction Company in 987 million
2. The Subtotal cash inflow received from financing activities decreased by 55.51% year-on year，Mainly due to
the raised funds of RMB 1.65 billion in the previous period.
3.The Subtotal cash outflow for financing activities increased by 53% year-on year，Mainly due to that the loan
repayments increased in the reporting period as compared with the previous period.
Reasons of major difference between the cash flow of operation activity in report period and net profit of the
Company
√Applicable □ Not applicable
Adjusting net profit to cash flow from operating activities
Net profit 1,710,223,687.42
Add: Impairment loss provision of assets 415,340.17
Depreciation of fixed assets, oil and gas assets and consumable biological
823,038,155.84
assets
Amortization of intangible assets 3,128,134.31
Amortization of Long-term deferred expenses 1,671,197.24
Loss on disposal of fixed assets, intangible assets and other long-term
deferred assets
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Fixed assets scrap loss 2,745,683.68
Fair value change loss
Financial cost 275,071,936.33
Loss on investment -448,268,367.19
Decrease of deferred income tax assets -324,488,702.34
Increased of deferred income tax liabilities -17,831,548.25
Decrease of inventories 323,888.89
Decease of operating receivables -44,132,575.54
Increased of operating Payable 213,093,094.79
Other
Net cash flows arising from operating activities 2,194,989,925.35
III. Analysis of Non-core Business
√ Applicable □Not applicable
In RMB
Proportion in total
Amount Explanation of cause Sustainable (yes or no)
profit
Investment income from
Investment Income 448,268,367.19 23.64% Sustainable
share-participating units
Provision for bad debt
Asset impairment 415,340.17 0.02% Not sustainable
according to the policy
Non-operating Provision for bad debt
65,779,816.71 3.47% Not sustainable
income according to the policy
Non-operating Provision for bad debt
6,681,492.26 0.35% Sustainable
expenses according to the policy
IV. Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
End of 2017 End of 2016 Proportion Notes to the
Proportion in the increase/decreas significant
Amount
total assets(%) e change
Monetary fund 2,363,042,700.42 14.30% 2,603,279,644.25 16.20% -1.90%
Accounts
92,642,625.45 0.56% 40,681,197.01 0.25% 0.31%
receivable
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
End of 2017 End of 2016 Proportion Notes to the
Proportion in the increase/decreas significant
Amount
total assets(%) e change
Inventories 0.00% 323,888.89 0.00% 0.00%
Investment real
2,755,757.68 0.02% 3,219,971.08 0.02% 0.00%
estate
Long-term equity
3,047,275,000.00 18.44% 2,220,805,130.31 13.82% 4.62%
investment
Fixed assets 8,505,434,890.71 51.48% 9,285,823,302.77 57.77% -6.29%
Construction
356,062,655.95 2.15% 149,244,110.30 0.93% 1.22%
inprocess
Short-term loans 0.00% 0.00% 0.00%
Long-term loans 4,744,170,000.00 28.71% 5,402,780,000.00 33.62% -4.91%
2.Asset and Liabilities Measured by Fair Value
√Applicable □ Not applicable
In RMB
Gain/Loss on
Cumulative fair Impairment Purchanased
fair value Sold amount in
Opening value change provisions in amount in the
Items change in the the reporting Closing mount
amount recorded into the repoting reporting
reporting period
equity period period
period
Financial assets
3.Available-for-
sale financial 919,846,831.04 32,935,692.16 435,221,646.40 952,782,523.20
assets
Subtotal of
919,846,831.04 32,935,692.16 435,221,646.40 952,782,523.20
financial assets
Total of the
919,846,831.04 32,935,692.16 435,221,646.40 952,782,523.20
above
Financial
0.00 0.00
liabilities
Did any significant change occur to the attribute of the Company’s main asset measurement during the reporting
period?
□ Yes √No
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
3. Assets right restriction till end of reporting period
Nil
V. Investment situation
1. General
√ Applicable □ Not applicable
Investment Amount in 2017(RMB) Investment Amount in 2016(RMB) Change rate
1,128,590,181.23 3,796,609,855.82 -70.27%
2.Condition of Acquiring Significant Share Right Investment during the Report Period
√Applicable □Not applicable
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
In RMB
Name of
Invest Share Investm Progress up to Antici Gain or Less Whether to
the Main Investment Capital Product Date of
ment Proport Partner ent Balance Sheet pated or the Current Involve in Disclosure Index
Company Business Amount Source Type Disclosure
Way ion % Horizon Date Incom Investment Lawsuit
Invested
e
Announcement of
Guoyuan Securitie Guoyuan negotiab Resolutions of the
Long-ter
Securities s Other 799,999,959.30 2.37% Self Securities le Complete 0.00 6,193,038.76 No July 8,2016 31th(Provisional)Meeting of
m
Co., Ltd. business Co., Ltd securitie the Seventh Board of
Directors
Total -- -- 799,999,959.30 -- -- -- -- -- -- 0.00 6,193,038.76 -- -- --
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
√ Applicable □Not applicable
In RMB
Reasons
Accumulate
for failure
Industry in Accumulated d realized
Fixed in meeting Date of
Form of which the Investment actual amount return as of
assets Source of Estimate scheduled Disclosu
Name investme investment amount during the invested as of Progress the end of Disclosure index（If any）
investme und d return progress re(If
nt project reporting period the end of the end of
nt or not and any)
operates reporting period the reporting
estimated
period
return
Fokai Expressway Announcement of the 29th
Self and July
Sanbaoto Shuikou Self Yes Expressway 218,590,221.93 726,653,752.93 21.21% 0.00 0.00 No (Provisional) Meeting of
Borrowing 17,2016
section Extension the seventh Board of
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
projecy Directors, Announcement
of External Investment
Announcement of the 13th
Huiyan Expressway October (Provisional) Meeting of
Shenzhen Section Self Yes Expressway 110,000,000.00 110,000,000.00 Self 2.05% 0.00 0.00 No 31,201 the Eighth Board of
Extension project 7 Directors, Announcement
of External Investment
Total -- -- -- 328,590,221.93 836,653,752.93 -- -- 0.00 0.00 -- -- --
4.Investment of Financial Asset
（1）Securities investment
√ Applicable □ Not applicable
In RMB
Purchas
Mode of Sale
Book value e Book value
Stock accounti Changes in fair Cumulative fair amount Sauce of
Security Security Initial investment balance at the amount Gain/loss of the balance at the end Accounting
Abbrevi ng value of the this value changes in the the
category code cost beginning of the in the reporting period of the reporting items
ation: measure period in equity this shares
reporting period this period
ment period
period
Domesti Financial
c and Everbrig assets
601818 517,560,876.80 FVM 919,846,831.04 32,935,692.16 435,221,646.40 23,054,984.51 952,782,523.20 Self
foreign ht Bank available for
stocks sale
Total 517,560,876.80 -- 919,846,831.04 32,935,692.16 435,221,646.40 0.00 0.00 23,054,984.51 952,782,523.20 -- --
Disclosure Date of
July 22,2009
Announcement on
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Securities Investment
Approved by the Board of
Directors
Disclosure Date of
Announcement on
Securities Investment
August 7,2009
Approved by the
Shareholders Meeting(If
any)
（2）Investment in Derivatives
□ Applicable √ Not applicable
The Company had no investment in derivatives in the reporting period.
5.Application of the raised capital
□ Applicable √ Not applicable
The Company had no application of the raised capital in the reporting period.
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2.Sales of major equity
□ Applicable √ Not applicable
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Ⅶ.Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
Company Registered Operating Income Operating profit
Company type Leading products and services Total assets(RMB) Net assets (RMB) Net Profit (RMB)
Name capital (RMB) (RMB)
Management of the Fokai Expressway
and its matching salvation,
maintenance cleaning, auto parts
supply services; the maintenance and
management of Jiujiang Bridge of
Guangzhan Expressway and car
Guangdong
salvation and maintenance (operated RMB 1.108
Fokai Subsidiary 4,641,099,324.93 4,319,799,770.00 709,257,174.68 267,861,953.10 668,095,711.12
by its subsidiaries); sales of industrial billion
Expresswa
production materials (not containing
gold, silver, automobile and dangerous
chemicals), building materials,
department stores, needles, textiles,
hardware, alternating current; parking
services.
Operating Guangfo Expressway Co.,
Guangfo Ltd.(starts from Hengsha, Guangzhou, ends RMB 200
Subsidiary 565,665,919.69 509,174,397.28 439,509,806.68 289,154,367.11 218,485,271.91
Expressway in Xiebian, Foshan. Total length 15.7 million
kilometers
Guangzhu
Traffic
Highway investment management and RMB 3
Investment Subsidiary 2,865,638,733.45 1,247,991,279.32 1,318,255,057.77 790,556,713.40 321,503,360.20
consultation; highway maintenance million
Management
Co., Ltd.
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Jingzhu The operation and management of
Expressway Guangzhou-Zhuhai Expressway and
RMB 580
Guangzhu Subsidiary provision of supporting services including 2,860,127,224.44 1,214,983,854.76 1,318,255,057.77 789,371,916.13 582,719,882.98
million
Section Co., fueling, salvage and supply of parts and
Ltd. components
Investment in and construction of Guanghui
Expressway Co., Ltd. and supporting
facilities, the toll collection and maintenance
Guangdong
management of Guanghui Expressway, The
Guanghui Sharing RMB 2.352
Guanghui Expressway's supporting 4,640,318,989.66 3,166,356,113.18 1,844,690,103.83 1,249,359,975.37 940,021,656.29
Expressway company million
gas station, salvation, vehicle
Co., Ltd.
maintenance, vehicle transport,
catering, warehousing investment and
development
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Subsidiaries obtained or disposed in the reporting period
√ Applicable □Not applicable
Name Mode Influence
Guangdong Yuegao Capital Investment Decrease the net profit attributable to listed
Establishment
(Hengqin) Co., Ltd. companies in 2017 of RMB 1.1732 million
Particulars about the Mutual holding companies
1. The company holds 100% stake of Guangdong Provincial Fokai Expressway Co. Ltd which is one of the
subsidiaries majority-controlled by the company and the subsidiary mainly engaged in operating and managing
the Fokai Expressway and the related matching businesses such as rescue, maintenance, cleaning and spare parts
supply service.
According to the Proposal of Guangdong Expressway Development Co., Ltd Absorbing and Merging Guangdong
Fokai Expressway Co., Ltd approved in the 2016 Annual General Meeting of Shareholders, the company absorbed
and merged its subsidiary-Fokai company. Since August 1, 2017, the relevant assets of the subsidiary were
transferred to Fokai Branch Company. Therefore, the assets data shown for Fokai Company are the data as of July
31, 2017; and the gains and losses data are the data of January-July 2017.
2. The company directly and indirectly holds 75% stake of Beijing-Zhuhai Guangzhu Section Expressway Co.,
Ltd, which is the company’s share-controlled subsidiary and operates Guangzhou- Zhuhai Expressway and
provides expressway matching services such as fuel filling, salvation and spare parts supply services. The net
profits in the current period increased RMB 88.4481 million and 17.89% compared with the last period, The main
reason for the increase was the combined effect of the natural increase of the toll revenue and the reduction of the
financial costs.
3.The Company holds a 75% equity interest in the Guangfo company, the construction and operation of the
Guangzhou-Foshan Expressway, including road maintenance, charges, signs, marking and other transport
facilities maintenance, Vehicle rescue and other business. The current net profit increased by RMB152.8122
million, an increase of 232.69%, the increasing is due to natural income growth and financial costs to reduce the
combined impact.
The increase was mainly due to: the increase in traffic flow led to an increase in toll revenue; 2. Guangfo
Expressway has been fully depreciated during the reporting period, and the depreciation of road assets decreased
by RMB145,41 million as compared with the same period of last year.
4. The company holds 30% stake of Guangdong Guanghui Expressway Co., Ltd, which has business of investment
and construction of Guanghui Expressway and supporting facilities; toll charge and maintenance of Guanghui
Expressway, investment and development of supporting business related to Guanghui Expressway such as gas
station, rescue, car repair, car transport, catering and warehousing. The net profit for the current period increased
by RMB 91.1759 million or 10.81% from the same period of the previous year. The increase was mainly due to
the increase of toll revenue caused by the increase of traffic volume and the combined effect of lower finance
costs and lower management costs.
Ⅷ.Special purpose vehicle controlled by the Company
□ Applicable √ Not applicable
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Ⅸ.Prospect for future development of the Company
1.Strategy of the Company’s Development
In recent years, our country’s expressways have a rapid development and the freeway main lines have achieved its
initial development, but the density of expressways is still low and the network hasn’t fully formed yet. Also, in
our country, there is no freeway to directly and effectively link up between some prefecture-level cities and
provincial capital cities or between the prefecture-level cities in which the population and the economic output
have reached the considerable scale. With the continuous growth of our country’s national economy and the
continual increase of expressway demanded by social running, Highway still has a certain amount of room for
development in China in the future.Highway upfront investment is huge and slow growth on investment benefits,
apparent hysteresis effect and output. Highway upfront investment for a huge, slow growth of investment benefits,
apparent hysteresis effect and output. The changes in national policies, directly affecting the realization of the
company's main business revenue and goals.
2.Business Plan in the Coming Year and Future Plan of the Company
The overall objective of 2018: to reach RMB 3.227 billion in revenue and control the operating costs within RMB
1.326 billion. Centering on this objective, and in 2018 and the coming few years.
The year of 2018 will be a crucial year for the implementation of the 13th Five-Year Plan of Guangdong
Expressway. We will focus on the development strategy of \"people-oriented, road-oriented, diversified
development\", enhance the management, carry out investment and mergers, perform new actions in
transformation and upgrading, and continuously promote the healthy and sustainable development.
(1). The pivot is the expressway industry, and we’ll continue to increase investment. Adhering to the investment
strategy of “Relying on the group, mainly focusing on the province and giving consideration to other provinces”,
the company will increase the development of new projects, establish communication and cooperation relationship
with multi sides and actively develop the sources of projects; in good time carry out the M&C of high-quality
expressway projects inside or outside of the system, widely collect the project information through multiple
channels and steadily promote investment in mergers and acquisitions of expressway projects both inside and
outside the system. In accordance with the principle of \"moderate release and effective integration\", we’ll
gradually adjust the structure of assets and improve the profitability in consideration to the current status of
scatted, small and large number of projects, fully think over the self-development ability and profitability and
pivot on the high-quality projects. By speeding up the transformation of development mode, we will realize the
fast, low-cost expansion and the high-quality development of Guangdong Expressway.
(2). Give full play to competitive advantages, and broaden the space for diversified development. Utilizing the
financing platform role and advantages of being a listed company, the company will carry out prudent, proper
direct equity investment business. Actively seek the cooperation with securities, funds and other investment
institutions, pay close attention to such fields as finance-similar, energy saving and environmental protection and
new energy, intelligent transportation and big health, and strengthen the development stamina of the company.
(3). Revitalize the land resources along the expressways, to create a new profit growth point. Under the premise of
consolidating the main business of road and property, we will continue to invest in projects with focus on
profitability and accelerate the diversified development mode. The study will centres on the transportation
industry chain, and we’ll strive for incremental land resources development along the roads. By fully tapping into
the related policies on the important nodes of Expressway, based on the \"project + resources\" policy, the company
will strive to implement the development goal of \"integrating enhancement of land sources along the expressways
by development project” through the expansion project in the southern part of Fokai Expressway. Taking the
expansion project of southern Fokai Expressway as an opportunity, we will strive for the development of
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
incremental land resources along the expressways and enhance the comprehensive investment return.
(4). Continue to enhance the quality of operation and management. Establish and enhance a highly efficient and
clear management mechanism to continuously improve the profitability of the subsidiaries and share-participating
companies, focus on “increasing revenue and reducing expenditure\", and continuously enhance the operation and
management level.
(5). Continue to enhance the efficiency of road maintenance and management. With the emphasis on the safety
management of bridges and culverts, urge the departments directly under the operation to strengthen the structure
management and maintenance of bridges and culverts, adopt the \"4 + X\" inspection and monitoring system for the
bridges and culverts, inspect and monitor the safety of bridges and culverts and make reinforcement for bridge and
culvert structures, thus to ensure the safe operation of the structure of bridges and culverts. Formulate and
implement the service areas sanitation promotion programs, improve facilities, clean up the environment, so as to
provide a convenient and comfortable environment for drivers and passengers. We will continue to strengthen the
guidance on construction design and enhance the supervision on engineering construction of reconstruction and
extension projects, promptly solve the difficulties encountered in the process of project construction and
management, so as to ensure orderly progress in accordance with the objectives.
(6). Continue to enhance the financial control function, strengthen the budget execution. We will improve the
financial internal control system, strengthen the debt risk management and effectively establish a financial risk
warning system.
X. List of the received researches, visits and interviews
1.Particulars about researches, visits and interviews received in this reporting period
√ Applicable □Not applicable
Way of
Reception time Types of visitors Basic index
reception
1. The main content of research:1. the daily operation; 2. the
Onsite
company's financial data analysis;3. development strategy; 4.
February 15,2017 investigatio Organization
analysis on the industry. 2.Primary data investigation: Public
n
information company regularly reports
1. The main content of research:1. the daily operation; 2. the
Onsite
company's financial data analysis;3. development strategy; 4.
March 30,2017 investigatio Organization
analysis on the industry. 2.Primary data investigation: Public
n
information company regularly reports
1. The main content of research:1. the daily operation; 2. the
company's financial data analysis;3. development strategy; 4.
March 30,2017 By Phone Organization
analysis on the industry. 2.Primary data investigation: Public
information company regularly reports
1. The main content of research:1. the daily operation; 2. the
company's financial data analysis;3. development strategy; 4.
March 30,2017 By Phone Organization
analysis on the industry. 2.Primary data investigation: Public
information company regularly reports
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Way of
Reception time Types of visitors Basic index
reception
1. The main content of research:1. the daily operation; 2. the
Onsite
company's financial data analysis;3. development strategy; 4.
May 10,2017 investigatio Organization
analysis on the industry. 2.Primary data investigation: Public
n
information company regularly reports
1. The main content of research:1. the daily operation; 2. the
Onsite
company's financial data analysis;3. development strategy; 4.
May 11,2017 investigatio Organization
analysis on the industry. 2.Primary data investigation: Public
n
information company regularly reports
1. The main content of research:1. the daily operation; 2. the
company's financial data analysis;3. development strategy; 4.
May 19,2017 Other Organization
analysis on the industry. 2.Primary data investigation: Public
information company regularly reports
1. The main content of research:1. the daily operation; 2. the
company's financial data analysis;3. development strategy; 4.
May 24,2017 Other Organization
analysis on the industry. 2.Primary data investigation: Public
information company regularly reports
1. The main content of research:1. the daily operation; 2. the
Onsite
company's financial data analysis;3. development strategy; 4.
June 7,2017 investigatio Organization
analysis on the industry. 2.Primary data investigation: Public
n
information company regularly reports
1. The main content of research:1. the daily operation; 2. the
Onsite
company's financial data analysis;3. development strategy; 4.
July 18,2017 investigatio Organization
analysis on the industry. 2.Primary data investigation: Public
n
information company regularly reports
1. The main content of research:1. the daily operation; 2. the
Onsite
company's financial data analysis;3. development strategy; 4.
July 21,2017 investigatio Organization
analysis on the industry. 2.Primary data investigation: Public
n
information company regularly reports
1. The main content of research:1. the daily operation; 2. the
company's financial data analysis;3. development strategy; 4.
August 30,2017 By Phone Organization
analysis on the industry. 2.Primary data investigation: Public
information company regularly reports
1. The main content of research:1. the daily operation; 2. the
company's financial data analysis;3. development strategy; 4.
August 30,2017 By Phone Organization
analysis on the industry. 2.Primary data investigation: Public
information company regularly reports
1. The main content of research:1. the daily operation; 2. the
September 28,2017 By Phone Organization company's financial data analysis;3. development strategy; 4.
analysis on the industry. 2.Primary data investigation: Public
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Way of
Reception time Types of visitors Basic index
reception
information company regularly reports
1. The main content of research:1. the daily operation; 2. the
company's financial data analysis;3. development strategy; 4.
October 31,2017 By Phone Organization
analysis on the industry. 2.Primary data investigation: Public
information company regularly reports
Reception times
Reception agency amount
Reception personal number
Others
Whether to disclose, reveal or disclose non-public
No
material information
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
V. Important Events
I. Specification of profit distribution of common shares and capitalizing of common reserves
Formulation, implementation and adjustment of profit distribution policy of common shares especially cash
dividend policy during the reporting period
□Applicable√ Not applicable
The profit distribution preplan or proposal and the Plan(preplan) or proposal of conversion of the capital reserve
into share capital in the past three years(with the reporting period inclusive):
(1) The Company's profit distribution plan for 2015 is as follows:
1.10% of the net profit of the company, i.e. RMB 26,741,749.54, is to be allocated for statutory common
reserve fund.
2.The profit for 2015 is to be distributed as follows: RMB 188,567,662.20. is to be allocated as the fund for
dividend distribution for 2015. with the total shares at the end of 2015, i.e., 1,257,117,748 shares, as the base, cash
dividend of RMB 1.50 (including tax) is to be distributed for every 10 shares .The remaining undistributed profits
are to be carried forward to the next year. The foreign exchange translation of the cash dividends for shareholders
holding B share and overseas corporate shares will be determined according to HKD:RMB bank’s Middle rate
quoted by People’s Bank of China on the first working day after 2015 annual shareholders’ general meeting makes
resolution on dividend distribution.
(2) The Company's profit distribution plan for 2016 is as follows:
1.10% of the net profit of the company, i.e. RMB71,314,278.93, is to be allocated for statutory common
reserve fund.
2.The profit for 2016 is to be distributed as follows: RMB 702,510,858.34. is to be allocated as the fund for
dividend distribution for 2016. with the total shares at the end of 2016, i.e., 2,090,806,126 shares, as the base, cash
dividend of RMB 3.36 (including tax) is to be distributed for every 10 shares .The remaining undistributed profits
are to be carried forward to the next year. The foreign exchange translation of the cash dividends for shareholders
holding B share and overseas corporate shares will be determined according to HKD:RMB bank’s Middle rate
quoted by People’s Bank of China on the first working day after 2016 annual shareholders’ general meeting makes
resolution on dividend distribution.
(3) The Company's profit distribution preplan for 2017 is as follows:
1.10% of the net profit of the company, i.e. RMB177,864,580.14, is to be allocated for statutory common
reserve fund.
2.The profit for 2017 is to be distributed as follows: RMB 1,057,947,899.76. is to be allocated as the fund for
dividend distribution for 2017. with the total shares at the end of 2017, i.e., 2,090,806,126 shares, as the base, cash
dividend of RMB 5.36 (including tax) is to be distributed for every 10 shares .The remaining undistributed profits
are to be carried forward to the next year. The foreign exchange translation of the cash dividends for shareholders
holding B share and overseas corporate shares will be determined according to HKD:RMB bank’s Middle rate
quoted by People’s Bank of China on the first working day after 2017 annual shareholders’ general meeting makes
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
resolution on dividend distribution.
Dividend distribution of the latest three years
In RMB
Net profit
Ratio in net profit
attributable to the Amount of cash Proportion of cash
attributable to the
Cash dividend over of the parent dividends from cash dividends from cash
Year parent company in
(Including Tax) company in the offer to repurchase offer to repurchase
the consolidated
consolidated shares of the funds shares of the funds
financial statements
financial statements
2017 1,057,947,899.76 1,509,922,398.70 70.07% 0.00 0.00%
2016 702,510,858.34 1,001,205,945.39 70.17% 0.00 0.00%
2015 188,567,662.20 696,100,201.88 27.09% 0.00 0.00%
In the reporting period, both the Company’s profit and the parent company’s retained earnings were positive
however not cash dividend distribution proposal has been put forward.
□Applicable√ Not applicable
II.Profit distribution plan and capitalizing of common reserves plan for the Period
√ Applicable □ Not applicable
Bonus shares for every ten shares(Shares)
Cash dividend for everty ten shares
5.06
(Yuan)(Tax-included)
Distribute additional (shares)for 10 shares
A total number of shares as the distribution
2,090,806,126
basis(shares)
Total cash dividend (Yuan)(Tax-included) 1,057,947,899.76
Profit dividend (Yuan) 2,090,806,126.00
Proportion of cash dividend in the distributable
profit (%)
Cash dividend distribution policy
The Company is in a fast growth stage, there fore, the cash dividend will reach 40% of the profit distribution at least. Cash dividend
distribution policy
Details of profit distribution or reserve capitalization plan
1.10% of the net profit of the company, i.e. RMB177,864,580.14, is to be allocated for statutory common
reserve fund.
2.The profit for 2017 is to be distributed as follows: RMB 1,057,947,899.76. is to be allocated as the fund for
dividend distribution for 2017. with the total shares at the end of 2017, i.e., 2,090,806,126 shares, as the base, cash
dividend of RMB 5.36 (including tax) is to be distributed for every 10 shares .The remaining undistributed
profits are to be carried forward to the next year. The foreign exchange translation of the cash dividends for
shareholders holding B share and overseas corporate shares will be determined according to HKD:RMB bank’s
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Middle rate quoted by People’s Bank of China on the first working day after 2017 annual shareholders’ general
meeting makes resolution on dividend distribution.
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
III.Commitments to fulfill the situation
1.The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the reporting period made by the company, shareholder, actual
controller, acquirer, director, supervisor, senior management personnel and other related parities.
Time of
Period of
Commitment Commitment maker Type Contents making Fulfillment
commitment
commitment
Commitment on share
reform
Commitment in the
acquisition report or
the report on equity
changes
Guangdong Expressway A shares acquired by the Company through
Guangfa Securities Co., Ltd., subscription in this major asset reorganization cannot be transferred or The date of
Fulfill the
Tibet Yingyue Investment listed for transaction within thirty-six months from the date of the the expiration
Share limited commitment
Management Co., Ltd., completion of the shares issuance in this major asset reorganization. Upon June 18,2015 of the share
commitment normally
Yadong Fuxing Yalian the expiry of the lock-up period, the transfer and transaction of these shares lock.
Investment Co., Ltd. will be made in accordance with the effective laws and regulations, and
relevant provisions of CSRS and Shenzhen Stock Exchange (SSE).
Commitment made
Guangdong Expressway A shares acquired by the Company through
upon the assets
subscription in this major asset reorganization cannot be transferred or
replacement
Guangdong Expressway Co., listed for transaction within thirty-six months from the date of the The date of
Fulfill the
Ltd., Guangdong Highway completion of the shares issuance in this major asset reorganization. Upon the expiration
Share limited commitment
Construction Co., Ltd., the expiry of the lock-up period, the transfer and transaction of these shares June 26,2015 of the share
commitment normally
Guangdong Communication will be made in accordance with the effective laws and regulations, and lock.
Group Co., Ltd. relevant provisions of CSRS and Shenzhen Stock Exchange (SSE). Upon
the completion of this major asset reorganization, if the closing price of the
A-share of Guangdong Expressway is below the issue price for 20
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Time of
Period of
Commitment Commitment maker Type Contents making Fulfillment
commitment
commitment
consecutive trading days within six months, or at the end of six months
after the completion of the transaction the closing price is below the issue
price, the lock-up period of the A-share of Guangdong Expressway
acquired by the Company through this major asset reorganization will be
automatically extended for six months.
Upon the mutual agreement by the Company and the Guangdong
Expressway Co., Ltd., the predicted annual net profit of the Guangzhou
Fokai Expressway Co., Ltd. is RMB 250.6973 million in 2016, RMB
2690.0802 million in 2017, and RMB 403.1197 million in 2018，The
non-recurring profit and loss in total is RMB 105.5743 million through
accumulated prediction. Within the compensation period, if Guangdong
Fokai Expressway Co., Ltd. achieves the accumulated net profit at the end
of one year lower than the accumulated predicted net profit of such year,
the company will, based on shares needing compensation through
Performance The period of
calculated and determined subject to the Agreement, buy back them by 1 Fulfill the
commitments compensation
Guangdong Expressway Co., yuan from Guangdong Fokai Expressway Co., Ltd. and cancel them and August commitment
and and the date of
Ltd. Guangdong Expressway Co., Ltd. shall compensate in cash for the share 26,2015 normally
compensation completion of
part in short. Upon the compensation period expiration, if the actual
arrangements the agreement.
accumulated non-recurring profit and loss (means the compensation granted
within the compensation period by the governmental sector to Guangdong
Fokai Expressway Co., Ltd. for Jiujiang Bridge charging cancel, hereinafter
referred to as “compensation amount for Jiujiang bridge”) of Guangdong
Fokai Expressway Co., Ltd. is lower than accumulated predicted
non-recurring profit and loss, Guangdong Expressway Co., Ltd. will,
subject to its shareholding ratio in Guangdong Fokai Expressway Co., Ltd.
before the major assets restructuring implementation, compensate the
company in cash per the agreement; after the compensation period
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Time of
Period of
Commitment Commitment maker Type Contents making Fulfillment
commitment
commitment
expiration, upon Guangdong Fokai Expressway Co., Ltd. acceptance of
Jiujiang bridge compensation each time, the company shall refund the
corresponding part among the compensation paid subject to the agreement
by Guangdong Expressway Co., Ltd. within 30 workdays after Guangdong
Fokai Expressway Co., Ltd. receives such compensation.
Upon the mutual agreement by the Company and the Guangdong Provincial
Highway Construction Co., Ltd., the predicted annual net profit of the
Guangzhou Guangzhu Traffic Investment Management Co., Ltd. is RMB
Performance 230.3606 million in 2016, RMB 263.2329 million in 2017, and RMB The period of
Fulfill the
commitments 286.5018 million in 2018. Within the term of compensation, if the compensation
Guangdong Highway August commitment
and cumulated net profit of Guangzhou Guangzhu Transportation Investment and the date of
Construction Co., Ltd. 26,2015 normally
compensation Management Co., Ltd. by the end of a year is lower than the accumulated completion of
arrangements predicted net profit of that year, the Company will buy back the the agreement.
compensated shares at the price of RMB 1 from the Guangzhou Guangzhu
Transportation Investment Management Co., Ltd. that should be calculated
in accordance with the agreement, and deregister such shares.
The commitment to avoid horizontal competition: 1. the Company and the This
companies that are under direct or indirect control of the Company, except commitment
Commitments
Guangdong Expressway and its subsidiaries, will not use the controlling is valid from
Guangdong Expressway Co., on horizontal
shareholders to damage the legitimate interests of the business activities of the date of Fulfill the
Ltd., Guangdong Highway competition,
Guangdong Expressway and its medium and small shareholders and its signing this commitment
Construction Co., Ltd., related June 26,2015
subsidiaries. 2. The Company and the companies that are under direct or letter of normally
Guangdong Communication transaction
indirect control of the Company, except Guangdong Expressway and its commitment
Group Co., Ltd. and capital
subsidiaries, will not use the information acquired from Guangdong to the date on
occupation
Expressway and its subsidiaries to engage in core business which competes which the
with Guangdong Expressway and its subsidiaries and will not conduct any shares of
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Time of
Period of
Commitment Commitment maker Type Contents making Fulfillment
commitment
commitment
activity that damages or may damage the legitimate interests of Guangdong Company is
Expressway and its medium and small shareholders and its subsidiaries. 3. no longer
As for the transfer of toll roads, bridges, tunnels and related ancillary controlled by
facilities or equity invested, constructed or managed by the Company or the controlling
companies, that are under direct or indirect control of the Company, except shareholder of
Guangdong Expressway and its subsidiaries to the Company or any the
company that is under direct or indirect control of the company, unless it is Guangdong
a transferee expressly designated by the relevant government departments, Expressway.
to the extent permitted by relevant laws and regulations, Guangdong
Expressway has the right of preemption under the same conditions. 4. In the
future, if the Company and the companies that are under direct or indirect
control of the Company, except Guangdong Expressway and its
subsidiaries, invest and construct a parallel highway or a highway in the
same direction on either side of the Highway within 20 km, to the extent
permitted by relevant laws and regulations, except in the project whose
investors have been expressly specified by the relevant government
departments, Guangdong Expressway has the priority right to invest ahead
of the Company and the companies that are under direct or indirect control
of the Company, except Guangdong Expressway and its subsidiaries,. This
commitment, when signed, constitutes the irrevocable legal obligations of
the Company. If the circumstances arise that cause damage to Guangdong
Expressway because of the Company’s breach of the commitment, the
Company will bear the corresponding liability according to laws. The
commitment to reduce and regulate the connected transactions: 1. After the
completion of this major asset reorganization, the Company and the
companies that are under direct or indirect control of the Company, except
Guangdong Expressway and its subsidiaries, and other related parties will
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Time of
Period of
Commitment Commitment maker Type Contents making Fulfillment
commitment
commitment
try to avoid the connected transaction with Guangdong Expressway and its
subsidiaries; the necessary and unavoidable connected transactions shall be
conducted in accordance with the
principles of fairness and compensation of equal value, the transaction
prices shall be determined according to the reasonable market price, the
transaction approval procedures and the disclosure obligations should be
conducted in accordance with relevant laws, regulations and regulatory
documents, to effectively protect the interests of medium and small
shareholders of Guangdong Expressway . 2. The Company guarantees to be
in strict accordance with relevant laws and regulations, the regulations and
regulatory documents promulgated by CSRC, the business rules
promulgated by Shenzhen Stock Exchange (SSE) and the rules of the
system such as the Articles of Association of Guangdong Provincial
Expressway Development Co., Ltd., exercise the shareholder rights and
fulfill the obligations of shareholders according to laws, without using
controlling shareholders’ holding position to seek improper interests,
without damage to the legitimate rights and interests of Guangdong
Expressway and its medium and
small shareholders. Once in violation of the above-stated commitment, the
company conducts a transaction with Guangdong Expressway and its
subsidiaries, causing damages to them, it shall bear the liability for
compensation according to laws. The date of this commitment is valid from
the date of signing the letter of commitment to the date of the Company's
ceasing to be controlled by the controlling shareholder of the Company.
(1) The commitment to the authenticity, accuracy and completeness of the Fulfill the
Guangdong Provincial Other
information disclosure and application documents: The Company June 26,2015 commitment
Expressway Development commitment
guarantees that there is no false, misleading statement or major omission in normally
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Time of
Period of
Commitment Commitment maker Type Contents making Fulfillment
commitment
commitment
Co., Ltd. the information disclosure and application documents for the major asset
reorganization, and it bears the legal liability for the authenticity, accuracy
and completeness of the above-mentioned information disclosure and
application documents. (2) The commitment of Guangdong Expressway to
not violate Article 39 of the Administrative Measures for the Issuance of
Securities by Listed Companies. The Company confirms and warrants that
there is no violation of the following matters regulated by the Article 39 of
the Administrative Measures for the Issuance of Securities by Listed
Companies: 1. The issuance application documents have false, misleading
statements or major omissions; 2. The interests of the Company are
seriously damaged by the controlling shareholders or the actual controller,
and such damages have not been eliminated; 3. The Company and its
subsidiaries illegally provide external guarantees and such guarantees have
not been eliminated; 4. The Board of Directors or senior management have
recently been subject to administrative penalty by CSRC within thirty-six
months, or within 12 months have been publicly condemned by the Stock
Exchange; 5. The current Board of Directors and senior management of the
Company are suspected of a crime and investigated by the judiciary
authorities or suspected of breaking the laws or the regulations and
investigated by CSRC; 6. In the financial report of the most recent year or
period, the CPA issues an audit report with qualified opinion, adverse
opinion or disclaimer of opinion, except that the significant impact of
matters concerning the qualified opinion, adverse opinion and disclaimer of
opinion has been eliminated or that the issue relates to the major
reorganization; 7. Other cases seriously damaging the legitimate interests of
investors and the public interests. (3) Other commitments: urge Fokai
Expressway Co., Ltd. to transfer the Xiebian Office to Guangfo
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Time of
Period of
Commitment Commitment maker Type Contents making Fulfillment
commitment
commitment
Expressway Co., Ltd.
(1) The commitment to the authenticity, accuracy and completeness of the (1) a promise
information provided: 1. The Company guarantees to provide the without a
information related to the major asset reorganization for Guangdong commitment
Expressway and ensures its authenticity, accuracy and completeness; if period.
there is false, misleading statement or major omission in the information (2) the date of
provided, which causes losses to Guangdong Expressway or the investors, the validity of
the Company will assume the compensation liabilities in accordance with the term
laws. If it is suspected that there is false, misleading statement or major commitment
omission in the information disclosed or provided for the major asset from the date
reorganization, and it is investigated by the judiciary authorities or by of this letter of
CSRC, before the clear conclusion of the case is reached, the Company will commitment
suspend the transfer of shares of Guangdong Expressway held by the to the date of Fulfill the
Guangdong Communication Other Company, and within two business days upon receipt of the notice of filing the company commitment
June 18,2015
Group Co., Ltd. commitment a case and inspection, the written application for suspending the transfer no longer is normally
and the stock account should be submitted to the Board of Directors of the date of the
Guangdong Expressway , and the Board of Directors of Guangdong controlling
Expressway , shall, on behalf of the Company apply for the lockout towards shareholder of
Shenzhen Securities Exchange (SSE) and Registration and Clearing guangdong.
Company; if the application for the lockout is not submitted in two business (3) the date of
days, after verification the Board of Directors authorized by the Company the validity of
will directly submits the Company’s identity and account information to the the term
Registration and Clearing Company and apply for the lockout; if the Board commitment
of Directors fails to do so, the Securities Exchange and the Registration and to the
Clearing Company will be authorized to directly lock the related shares. If completion of
it is found that the Company has illegal circumstances, the company the
promises that the lockout shares should be automatically used for the completion of
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Time of
Period of
Commitment Commitment maker Type Contents making Fulfillment
commitment
commitment
compensation for the relevant investors. (2) The commitment to maintain the
the independence of the listed company. The Company and the companies, completion of
that are under direct or indirect control of the Company, except Guangdong the major
Expressway and its holding subsidiaries, have increased their shares of asset
Guangdong Expressway after the completion of the major asset restructuring.
reorganization; however they will not damage the independence of
Guangdong Expressway . They will continue to be separated from
Guangdong Expressway in assets, personnel, finance, organization and
business and strictly abide by the relevant provisions on the independence
of listed companies of CSRC. They don’t illegally use Guangdong
Expressway to provide guarantee, or occupy its capital so as to keep and
maintain its independence and safeguard the legitimate rights and interests
of other shareholders of Guangdong Expressway . All losses will be borne
by the Company if it breaks the above commitments and causes losses to
Guangdong Expressway .
(1) The commitment to the authenticity, accuracy and completeness of the (1) a promise
information provided: The Company guarantees that there is no false, without a
misleading statement or major omission in the information disclosure and commitment
application documents for the major asset reorganization. If it is suspected period.
Guangdong Highway that there is false, misleading statement or major omission in the (2) the date of Fulfill the
Construction Co., Other information disclosed or provided for the major asset reorganization, and it the validity of commitment
June 26,2015
Ltd.,Guangdong Expressway commitment is investigated by the judiciary authorities or by CSRC, before the clear the term normally
Co., Ltd. conclusion of the case is reached, the Company will suspend the transfer of commitment
shares of Guangdong Expressway held by the Company, and within two from the date
business days upon receipt of the notice of filing a case and inspection, the of this letter of
written application for suspending the transfer and the stock account should commitment
be submitted to the Board of Directors of Guangdong Expressway, and the to the date of
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Time of
Period of
Commitment Commitment maker Type Contents making Fulfillment
commitment
commitment
Board of Directors of Guangdong Expressway, shall, on behalf of the the company
Company, apply for the lockout towards Shenzhen Securities Exchange no longer is
(SSE) and Registration and Clearing Company; if the application for the the date of the
lockout is not submitted within two business days, after verification the controlling
Board of Directors authorized by the Company will directly submits the shareholder of
Company’s identity and account information to the Registration and guangdong.
Clearing Company and apply for the lockout; if the Board of Directors fails (3) the date of
to do so, the Securities Exchange and the Registration and Clearing the validity of
Company will be authorized to directly lock the related shares. If it is found the term
that the Company has illegal circumstances, the Company promises that the commitment
lockout shares should be automatically used for the compensation for the to the
relevant investors. (2) The commitment to maintain the independence of the completion of
listed company. The Company and the companies, that are under direct or the
indirect control of the Company, except Guangdong Expressway and its completion of
subsidiaries, have increased their shares of Guangdong Expressway after the
the completion of the major asset reorganization; however they will not completion of
damage the independence of Guangdong Expressway. They will continue to the major
be separated from Guangdong Expressway in assets, personnel, finance,
asset
organization and business and strictly abide by the relevant provisions on
restructuring.
the independence of listed companies of CSRC. They will not illegally use
Guangdong Expressway to provide guarantee, or occupy its capital, and
they will keep and maintain the its independence and safeguard the
legitimate rights and interests of other shareholders of it. (3)The company
confirmed and guaranteed: 1, the company set up and effectively exist in
accordance with the law of the enterprise, the company has an independent
legal personality, independent of the ability to assume legal responsibility.
2, as the commitment letter issued by the Japanese, the company does not
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Time of
Period of
Commitment Commitment maker Type Contents making Fulfillment
commitment
commitment
exist in the listed company acquisition management approach \"the
provisions of Article 6 of the acquisition of a listed company may not be
under any of the following circumstances: (1) bears a relatively large
amount of debt, due and outstanding, and in persistent state; (2) in recent 3
years, have major violations or suspected of major violations; (3) in recent
3 years, have severe stock market acts of dishonesty; (4) the laws,
administrative regulations and recognized by the CSRC shall not purchase
of Listed Companies in other circumstances. This commitment is issued to
the completion of the reorganization before, if the company does not
conform to the fact that these commitments, the company that will be
occurring in the facts, from within 3 days notice of Guangdong expressway,
otherwise it will bear incurred in the full legal responsibility.
Guangdong Communication Group Co., Ltd. commits: for the lands, real Related land,
estates and allocated lands for which the Guangdong Fokai Expressway real estate
Co., Ltd. and Guangzhu Section of Jingzhu Expressway Co., Ltd. have not management
gone through the procedures of ownership registration (1) the property authority Fulfill the
Guangdong Communication Other rights of the above-mentioned lands are clear, and can be legally used by January certificate or commitment
Group Co., Ltd. commitment the target company; (2) assist or ask the Guangdong Highway Co., Ltd. and 19,2016 related land to normally
Guangdong Highway Construction Co., Ltd to assist in conducting the complete the
ownership registration of the real estates; (3) the land can continue to be transfer
used unscathed before the ownership registration; (4) once losses arise, bear procedures of
the losses of Guangdong Expressway according to its shareholding ratio. the day.
Guangdong Communication Group Co., Ltd. commits: within 3 years from within 3 years Change of
Guangdong Communication Other January
the date of completion of the reorganized underlying asset transfer, in which from the date deadline for
Group Co., Ltd. commitment 19,2016
Guangzhu Section of Jingzhu Highway Co., Ltd. shall hire professional of completion completion of
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Time of
Period of
Commitment Commitment maker Type Contents making Fulfillment
commitment
commitment
organizations to sort out and prepare the documents needed for the of the commitments
ownership registration and complete the ownership registration procedures reorganized
within 1 year for the relevant lands or real estates in Guangzhou and Zhuhai underlying
city for which the Guangdong Fokai Expressway Co., Ltd and Guangzhu asset transfer
Section of Jingzhu Expressway Co., Ltd. have not gone through the
procedures of ownership registration.
In favor of safeguarding the interests of listed companies under the
situation, will urge the Fokai company and Guangzhou Zhuhai east
company in accordance with the following plan registration: 1, hire a
professional organization, the relevant land and real estate information for
further screening and combing, and further to find out the management
problems and difficulties relating to land and property management within 3 years
authority to prove the existence of the 2; the establishment of land and real from the date
estate registration work group, and hire a professional agency, organize and of completion Fulfill the
Guangdong Communication Other
improve the relevant land and real estate registration documents; 3, to July 19,2017 of the commitment
Group Co., Ltd. commitment
accelerate the processing speed, the completion of 3 years for the relevant reorganized normally
land and real estate registration formalities completed in this major asset underlying
restructuring, which, for Guangzhou Zhuhai east company in Guangzhou asset transfer
City, the administrative area of Zhuhai city have not for the relevant
certificate of ownership of land and real estate (the part of the land, real
estate If not covered by the letter of confirmation of the relevant
government, the registration procedures shall be completed within 3 years
from the date of the completion of this major asset reorganization.
Commitments made
upon first issuance or
refinance
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Time of
Period of
Commitment Commitment maker Type Contents making Fulfillment
commitment
commitment
Equity incentive
commitment
Other commitments
made to minority
shareholders
Completed on
No
time(Y/N)
Through the deliberation and approval of the 11th temporary meeting of the 8 th Board of Directors and the 1st temporary general meeting of shareholders in 2017, it
Where the
agrees on the change of Guangdong Traffic Group Co., Ltd. commitments about relevant land and housing handling the ownership registration procedures of the asset
commitment is
reorganization subject Guangdong Fokai Expressway Co., Ltd. and Jingzhu Expressway Guangzhu Section Co., Ltd. among major assets reorganization for which, the
overdue and has not
company issues shares, pay for assets purchase in cash and collect the supporting capital in 2016. Refer to the Announcement on the Completion Progress Condition of
been fulfilled, then the
the Major Assets Reorganization Commitments and the Completion Period of the Dominant Shareholder’s Application for Changing Partial Commitments and
specific reasons for
Announcement of the Resolution of the 11th Session (Temporary) of the 8th Board of Directors on July 4, 2017 and the Announcement of the Resolution of the 1st
the failure to complete
Temporary General Meeting of Shareholders on July 20, 2017 of the company on Securities Times, China Securities Journal and Shanghai Securities News for details
and the next work
about the partial commitments change.
plan shall be specified
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still in the
forecast period, the company has assets or projects meet the original profit forecast made and the reasons
explained
√Applicable □Not applicable
Asset or Project
Start date of End date of the
Name of Forecast Actual Reason for less Disclosure date Reference for
the forecasting forecasting
Earnings earnings earnings than forecast of the Forecast the Forecast
period period
Forecast
www.cninfo.co
m.cn .
Announcement
Fokai
December on matters
Expressway Co., January 1,2016 26,008.02 31,470.91 Not applicable July 7,2016
31,2018 related to
Ltd.
major asset
restructuring
commitments
www.cninfo.co
Guangzhou m.cn .
Guangzhu Announcement
Traffic December on matters
January 1,2016 26,323.29 32,150.34 Not applicable July 7,2016
Investment 31,2018 related to
Management major asset
Co., Ltd. restructuring
commitments
The commitments of the operating earnings made by the company’s shareholder and relevant transaction parties
□ Applicable √ Not applicable
IV.Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable √ Not applicable
Nil
V.Explanation of the Supervisory Committee and Independent Directors (If applicable)on the Qualified
Auditor’s Report Issued by the CPAs.
□ Applicable √ Not applicable
Nil
VI.Explain change of the accounting policy, accounting estimate and measurement methods as compared
with the financial reporting of last year.
√Applicable □ Not applicable
In accordance with requirements of the Notice Concerning Printing of the Revised Accounting Standards
for Business Enterprises No. 16- Governmental Subsidies (CK[2017] No.15), the company shall include the
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
governmental subsidies related to the enterprise daily activities into the other income or offset relevant costs
subject to the economic business property; and include those irrelevant to the enterprise daily activities into the
non-business income. Therefore, the company shall adopt the prospective application for such accounting policy
change, which will not produce any influence on profits and losses, total assets and net assets listed in the current
and previous periods.
Pursuant to the Notice on the Revision and Issuance of the Format for General Enterprise Financial
Statements (Cai Kuai [2017] No.30), the gains and losses on the disposal of non-current assets and the gains and
losses of non-monetary asset exchange previously stated in \"Non-operating income\" and \"Non-operating
expenses\" are required to be presented in the \"Gains on disposal of assets\". Accordingly, the Company applied
retrospective adjustment method to the change of such accounting policy, reduced non-operating income by
RMB10,105,140.34 in 2016 and increased gains on disposal of assets by RMB10,105,140.34 in 2016, which
would not affect the net profit presented in the previous period.
VII.Explain retrospective restatement due to correction of significant accounting errors in the reporting period
□Applicable √ Not applicable
Nil
VIII.Explain change of the consolidation scope as compared with the financial reporting of last year.
√Applicable □Not applicable
The Company had 6 subsidiaries included in the scope of consolidation in 2017. The scope of the
consolidated financial statements increased by 1 compared with the previous period-for having the newly
established enterprise.
On August 3, 2017, the Company established a wholly-owned subsidiary, Guangdong Yuegao Capital
Investment (Hengqin) Co., Ltd., which was newly added into the scope of consolidation in 2017.
IX. Engagement/Disengagement of CPAs
CPAs currently engaged
Name of the domestic CPAs Zhengzhong Zhujiang Certified Public Accountants Co., Ltd.
Remuneration for domestic accounting firm
(RMB’0000)
Successive years of the domestic CPAs offering
auditing services
Names of the certified public accountants from the
Feng Kuncong,Xu Jihong
domestic CPAs
Successive years of the certified public accountants
Feng Kuncong 2 years，Xu Jihong 3 years
from the domestic CPAs
Has the CPAs been changed in the current period
□ Yes √No
Description of the CPAs, financial adviser or sponsor engaged for internal control auditing
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
√Applicable □Not applicable
1.2016 shareholders' general meeting of the Company examined and adopted the Proposal for Engaging Auditing
Body for Internal Control. The Company was approved to engage Guangdong Zhengzhong Zhujiang Certified
Public Accountants Co., Ltd. as the auditing body for internal control of the Company for 2017. The audit fee
shall be less than RMB 0.30 million.
2. For the item of major assets, the company employed CITIC Securities Company Limited as the Financial
Consultant in current year and 3 million yuan was paid already to the Financial Consultant in 2015.
X.Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly
Report
□Applicable √ Not applicable
XI.Relevant Matters of Bankruptcy Reorganization
□Applicable √ Not applicable
Nil
XII.Matters of Important Lawsuit and Arbitration
□Applicable √ Not applicable
Nil
XIII.Situation of Punishment and Rectification
□Applicable √ Not applicable
Nil
XIV.Credit Condition of the Company and its Controlling Shareholders and Actual Controllers
□Applicable √ Not applicable
XV.Implementation Situation of Stock Incentive Plan of the Company, Employee Stock Ownership Plan or
Other Employee Incentive Measures
□Applicable √ Not applicable
Nil
XVI.Material related transactions
1. Related transactions in connection with daily operation
□Applicable √ Not applicable
Nil
2. Related-party transactions arising from asset acquisition or sale
□Applicable √ Not applicable
Nil
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
3. Related-party transitions with joint investments
□Applicable √ Not applicable
Nil
4. Credits and liabilities with related parties
√Applicable □ Not applicable
There are non-operational contact of related credit and debts in the Company
□Yes √No
Nil
5. Other significant related-party transactions
√Applicable □ Not applicable
（1）The 7th meeting of the Eighth board of directors of the Company examined and adopted the Proposal
for Renewing the Lease of Litong Plaza as Office Building. Agreed to continue to leasing the full floor of 44th
floor and the full floor unit of 43th floor (self-directed the full floor of 46th floor and the full floor unit of 45th floor)
of Litong Plaza planning floor of Guangdong Litong Property Investment Co., Ltd as the office use, with the time
from May 5, 2017 to May 4, 2020. The monthly rent standard in the period from May 5, 2017 to May 4, 2018 is
RMB 735,092, and the monthly rent standard in the period from May 5, 2018 to May 4, 2020 is RMB 771,847.
During the lease period, RMB 147,387 will be paid to the Guangzhou branch of Beijing Shibang Property
Management Service Co., Ltd every month.
2. The Proposal about the Daily Related Transaction of 2017 of the Company was examined and approved in
the 7th meeting of the 8th session of the Board of Directors, agreed that the company and its wholly-owned
subsidiaries and holding subsidiaries had the total transaction amount of RMB 58.6903 million.
3.The 13th (interim) Meeting of the Eighth Board of Directors and the 3rd Provisional Shareholders' General
Meeting of 2017 examined and approved the \"Proposal of Signing Financial Services Agreement with Guangdong
Communications Group Finance Co., Ltd\", and agreed that the Company and Guangdong Provincial
Communications Group Finance Co., Ltd signed the \"Financial Services Agreement\" and authorized the
company's management team to implement the specific.
The website to disclose the interim announcements on significant related-party transactions
Date of disclosing provisional Description of the website for disclosing
Description of provisional announcement
announcement provisional announcements
Related transaction announcement March 29,2017 www.cninfo.com.cn
Announcement of related party transactions March 31,2017 www.cninfo.com.cn
Related transaction announcement October 31,2017 www.cninfo.com.cn
XVII.Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
□Applicable √ Not applicable
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Nil
(2) Contract
□ Applicable √ Not applicable
Nil
(3) Lease
□Applicable √ Not applicable
Nil
2.Guarantees
√Applicable□Not applicable
（1）Guarantees
In RMB’0000
Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)
Relevant
Date of Guarantee
disclosure Complete
happening Actual for
date/No. of Amount of implementa
Name of the Company (Date of mount of Guarantee type Guarantee term associated
the Guarantee tion
signing guarantee parties
guaranteed or not
agreement) (Yes or no)
amount
Guangdong
May 2012.9.25-20
Communication 172,500 May 31,2013 172,500 Martgage No Yes
11,2012 21.7.25
Group Co.,Ltd
Total of external guarantee Total of actual external
22,500 22,500
approved in Period(A1) guarantee in Period(A2)
Total balance of actual
Total of external guarantee
172,500 external guarantee at 172,500
approved at Period-end(A3)
Period-end(A4)
Guarantee of the Company for the controlling subsidiaries
Guarante
Relevant
Date of Complete e
disclosure
Name of the Amount happening Actual implemen for
date/No. of Guarantee Guarantee
Company of (Date o mount of tation associate
the type term
guaranteed guarantee signing guarantee or d
guaranteed
agreement) not parties
amount
(Yes or
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
no)
Guarantee of the subsidiaries for the controlling subsidiaries
Guarante
Relevant e
Date of Complete
disclosure for
Name of the Amount happening Actual implemen
date/No. of Guarantee Guarantee associate
Company of (Date o mount of tation
the type term d
guaranteed guarantee signing guarantee or
guaranteed parties
agreement) not
amount (Yes or
no)
Total of Company’s guarantee（namely total of the large three aforementioned）
Total of guarantee in the Period Total of actual guarantee in
22,500 22,500
（A1+B1+C1） the Period（A2+B2+C2）
Total of actual guarantee at
Total of guarantee at Period-end
172,500 Period-end 172,500
（A3+B3+C3）
（A4+B4+C4）
The proportion of the total amount of actually guarantee in the net
19.12%
assets of the Company(that is A4+B4+C4)
Including
Amount of guarantee for shareholders, actual controller and its
172,500
associated parties（D）
Total guarantee Amount of the abovementioned guarantees
172,500
（D+E+F）
Description of the guarantee with complex method
（2）Illegal external guarantee
□ Applicable √ Not applicable
Nil
3.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance
□ Applicable √ Not applicable
Nil
(2)Situation of Entrusted Loans
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
□ Applicable √ Not applicable
Nil
4. Other significant contract
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
√ Applicable □Not applicable
Whe
The contract ther As at
The contract
involves the it is the
Name of the involves the Evaluation
Contract The subject Date of carrying Evaluate the Transaction relat end of
other party valuation of agency Pricing Connection Disclosure
company of the contract amount of base date(If price(Millio ed to the Disclosure index
who enter the name(If principles relateion date
name contract signing the asset any) n) the reporti
the contract asset(Millio any)
(million)(if trans ng
n)(If any)
any) actio period
n
Zhuhai
Guangao
（State） Guangdong
Expressway
Jingzhu Exp High-tech Zhonglian
Zhuhai Evaluation
ressway Gu Industrial December Yangcheng May December www:http.cninfo.com.c
Section 17,780.05 20,597 price as a 20,600 No No relation. No
angzhu Co., Developme 29,2017 Asset 31,2017 30,2017 n
（No.K0+9 benchmark
Ltd. nt Zone Appraisal
45---K5+15
Managemen Co., ltd.
8）
t Committee
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
XVIII.Social responsibility
1. Execution of social responsibility of targeted poverty alleviation
In 2017, the expressway toll-free policy for small-sized passenger cars with less than 7 seats for main
holidays, intermittent free-charge release and green-channel preferential policy were still executed, Guangfo
company, Fokai company and Guangzhudong company have completed each safety and smooth traffic task
successfully based on the thorough understanding, complete personnel dispatching, duties performance and
measures implementation.
1. Several measures are implemented synchronously to provide drivers and the public with the smooth,
convenient, comfortable and safe driving environment and build the harmonious relationship between vehicles
and roads jointly. The company is located in Guangfo and Fokai sections among Pearl River Delta developed zone,
in which, the traffic flow is large and the charging squares and lanes resources are limited due to the limitation of
the previous infrastructure construction scale. Then, with the influence of the north-ring expressway as well as
Gonghe-Siqian bottleneck-type section, the congestion and slow traffic become normal. The traffic flow peak in
holidays lasts long with strong directionality and plenty of emergencies and therefore the vehicle free toll in
holidays catches high social attention. Each toll-station lanes are reconstructed with the whole-weighing-platform
weighing equipment, which results in the larger pressure of the smooth traffic guarantee by stations. In light of
such condition, the company motivated through organization the section companies to perfect and detail the
smooth traffic guarantee working schemes continuously, summarize previous experience, conduct emergency
exercises and make the production line exercise various smooth-traffic measures skillfully on one hand; on the
other hand strengthen the service consciousness and conduct the business and civilized service trainings. Through
efforts of all parties, the section for the company is free from artificial vehicle congestion and mass incidents for
the whole year with the complaints limited to zero, through which, the safety and reliability of the expressway
traffic environment were guaranteed.
2. Respond positively to the governmental policies, provide preferential, deduction and exemption policies
per laws and reduce the cost of enterprise transportation and the masses travel.
Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of Environmental
Protection
Not applicable
Whether the social responsibility report released
□Yes √ No
XIX. Explanation on other significant events
√ Appliable □Not applicable
Mr. Wang Chunhua, the general manager of the company, bought 135100 shares of Hong Kong high speed B shares in April 11, 2017.
The purchase of company stock behavior reported in the first quarter of 2017 the company within thirty days before the date of
disclosure, the first quarter of 2017 earnings forecast disclosure date within ten days before the violation of the \"main board listed
companies standardize operational guidelines\" and \"listed company directors, supervisors and senior management personnel of the
company held shares and change management rules\". The relevant provisions. The Shenzhen stock exchange and the Guangdong
regulatory agency of the China Securities Regulatory Commission issued a supervisory letter to Mr. Wang Chunhua.
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
XX. Significant event of subsidiary of the Company
√ Applicable □Not applicable
The Proposal about Guangdong Provincial Expressway Development Co., Ltd’s Merger of Guangdong Fokai
Expressway Co., Ltd was examined an approved in the eighth meeting(Temporary) of the eighth session board of
directors of the company and was approved in the 2016 annual shareholders' general meeting , agreed to the
company's merger and consolidation of the wholly-owned subsidiary-Guangdong Fokai Expressway Co., Ltd. In
May 2017, the company set up the Guangdong Provincial Expressway Development Co., Ltd Foshan Branch
Company, and completed the relevant industrial and commercial registration procedures. On August 1, 2017, the
operation and management of the Fokai Expressway was officially transferred to Fokai Branch Company from
Fokai Company.
Description of the website for
Date of disclosing
Description of provisional announcement disclosing provisional
provisional announcement
announcements
th
Announcement of Resolutions of the 8 (Provisional) Meeting of April 8,2017 www.cninfo.com.cn
the Eighth Board of Directors
Announcement of Merger April 8,2017 www.cninfo.com.cn
Notice of Holding 2016 Annual Shareholders' General Meeting April 29,2017 www.cninfo.com.cn
Announcement on the progress of major Events May 4,2017 www.cninfo.com.cn
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
VI. Change of share capital and shareholding of Principal Shareholders
I.Changes in share capital
1. Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportio Capitalizatio
Share Bonus Proportio
n n of common Other Subtotal Quantity
allotment shares n
reserve fund
1.Shares with conditional
1,273,392,897 60.90% -222,595 -222,595 1,273,170,302 60.89%
subscription
1.State-owned shares 409,977,151 19.61% 25,702 25,702 410,002,853 19.61%
2.State-owned legal
521,393,021 24.94% 521,393,021 24.94%
person shares
3.Other domestic shares 342,022,725 16.35% -248,297 -248,297 341,774,428 16.34%
Including ：Domestic
341,260,941 16.32% -35,155 -35,155 341,225,786 16.32%
Legal person shares
Domestic natural person
761,784 0.03% -213,142 -213,142 548,642 0.02%
shares
II.Shares with
817,413,229 39.10% 222,595 222,595 817,635,824 39.11%
unconditional subscription
1.Common shares in
468,663,229 22.42% 222,595 222,595 468,885,824 22.43%
RMB
2.Foreign shares in
348,750,000 16.68% 348,750,000 16.68%
domestic market
III. Total of capital shares 2,090,806,126 100.00% 0 0 2,090,806,126 100.00%
Reasons for share changed
√ Applicable □Not applicable
Note 1: within the report period, 40 shareholders repay the 25,702 consideration shares of the equity division
reform prepaid by Guangdong Traffic Group Co., Ltd. and 4720 shares transfer into the “state holdings” from the
“domestic legal person holdings” and 20982 domestic natural person holdings”.
Note 2: within the report period, “domestic legal person holdings” totaling 30435 shares and “domestic
natural person holdings” totaling 135273 shares are released from the sales restriction and listed for circulation on
April 28, 2017 and transferred into the “unlimited tradable shares”.
Note 3: The 56,887 shares held by the former Supervisor Tu Huiling was released into \"Tradable Shares Without
Restrictions” from the “Executive Lock-in shares”.
Approval of Change of Shares
□ Applicable √ Not applicable
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Ownership transfer of share changes
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √ Not applicable
2. Change of shares with limited sales condition
√ Applicable □Not applicable
In RMB
Number of
Number of Restricted Shares Date of
Initial Restricted Increased Reason for
Shareholder Name Unrestricted in the End of the Restriction
Shares Restricted Shares Restricted Shares
Shares This Term Term Removal
This Term
The change of shares
Guangdong to restricted share，
Communication 409,977,151 25,702 410,002,853 No procedures for Unknown
Group Co.,Ltd lifting the restriction
have been completed
Ren Jingkang and 40 he change of shares
191,410 165,708 April 28,2017
shareholders to restricted share
he change of shares
Tu Huiling 56,887 56,887 0 January 5,2017
to restricted share
Total 410,225,448 222,595 25,702 410,002,853 -- --
II. Securities issue and listing
1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period
□ Applicable √ Not applicable
2.Change of asset and liability structure caused by change of total capital shares and structure
□ Applicable √ Not applicable
3.About the existing employees’ shares
□Applicable√Not applicable
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
III.Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Shares
The total number of pref
otal number of common
Total shareholders at the end of the month from the erred shareholders votin
shareholders at the end of the 65,473 64,037 0
date of disclosing the annual report g rights restored at perio
reporting period
d-end (if any)
Particulars about shares held above 5% by shareholders or top ten shareholders
Changes Number of share
Number of Amount of Amount of
Proportion of shares in pledged/frozen
Shareholders Nature of shareholder shares held at restricted un-restricted
held（%） reporting State of
period -end shares held shares held Amount
period share
Guangdong Communication Group Co.,Ltd State-owned legal person 24.55% 513,382,595 410,002,853 103,379,742
Guangdong Highway Construction Co., Ltd, State-owned legal person 22.30% 466,325,020 466,325,020
Domestic non State-owned
Yadong Fuxing Yalian Investment Co., Ltd. 9.68% 202,429,149 202,429,149 Pledge 202,429,000
Legal person
Domestic non State-owned
Tibet Yingyue Investment Management Co., Ltd. 4.84% 101,214,574 101,214,574
Legal person
Guangdong Expressway Co., Ltd. State-owned legal person 2.53% 52,937,491 52,937,491
Domestic non State-owned
Guangfa Securities Co., Ltd. 1.45% 30,364,372 30,364,372
Legal person
Domestic natural person
Feng Wuchu 1.02% 21,417,956
shares
Xingye Securities Co., Ltd. State-owned legal person 0.98% 20,570,063
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
PERSHING LLC oreign legal person 0.83% 17,347,354
Xinyue Co., Ltd. Foreign legal person 0.63% 13,201,086
Guangdong Communication Group Co., Ltd. is the parent company of Guangdong Expressway Co., Ltd. ,
Guangdong Highway Construction Co., Ltd. and Xinyue Co., Ltd.. It is unknown whether there is
Explanation on associated relationship among the aforesaid shareholders relationship between other shareholders and whether they are persons taking concerted action specified in
the Regulations on Disclosure of Information about Change in Shareholding of Shareholders of Listed
Companies.
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted shares held at the Share type
Name of the shareholder
end of the reporting period Share type Quantity
Guangdong Communication Group Co.,Ltd 103,379,742 RMB Common shares 103,379,742
RMB Common shares 19,677,358
Feng Wuchu 21,417,956
Foreign shares placed in domestic exchange 1,740,598
Xingye Securities Co., Ltd. 20,570,063 RMB Common shares 20,570,063
PERSHING LLC 17,347,354 Foreign shares placed in domestic exchange 17,347,354
Xinyue Co., Ltd. 13,201,086 Foreign shares placed in domestic exchange 13,201,086
PRUSIK UMBRELLA UCITS FUND PLC 11,999,871 Foreign shares placed in domestic exchange 11,999,871
Khazanah Nasional Berhad－self fund 10,522,779 RMB Common shares 10,522,779
MATTHEWS CHINA DIVIDEND FUND 9,809,806 Foreign shares placed in domestic exchange 9,809,806
Yongan Guofu Asset Management Co.,Ltd.－
Yongan Guofu－Yongfu No.10 private 7,255,301 RMB Common shares 7,255,301
investment fund
GUOTAI JUNAN
7,157,194 Foreign shares placed in domestic exchange 7,157,194
SECURITIES(HONGKONG) LIMITED
Explanation on associated relationship or Guangdong Communication Group Co., Ltd. is the parent company of Guangdong Expressway Co., Ltd. , Guangdong Highway Construction
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
consistent action among the top 10 shareholders Co., Ltd. and Xinyue Co., Ltd.. It is unknown whether there is relationship between other shareholders and whether they are persons taking
of non-restricted negotiable shares and that concerted action specified in the Regulations on Disclosure of Information about Change in Shareholding of Shareholders of Listed
between the top 10 shareholders of Companies.
non-restricted negotiable shares and top 10
shareholders
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy –back agreement dealing in reporting
period.
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
2.Controlling shareholder
Nature of Controlling Shareholders: Local state holding
Type of Controlling Shareholders:Legal person
Legal
Name of the Controlling Date of
representative/ Organization code Principal business activities
shareholder incorporation
Leader
Equity management, organization of asset
reorganization and optimized allocation,
raising funds by means including mortgage,
transfer of property rights and joint stock
system transformation, project investment,
operation and management, traffic
Guangdong Communication infrastructure construction, highway and
Deng Xiaohua June 23,2000 91440000723838552J
Group Co., Ltd. railway project operation and relevant
industries, technological development,
application, consultation and services,
highway and railway passenger and cargo
transport, ship industry, relevant overseas
businesses; Value added telecommunication
services.
Equity in other domestic and
foreign listed companies held
Guangdong Communication Group Co., Ltd. holds 74.12% equity of Guangdong Nanyue Logistics
by the controlling shareholder
Co., Ltd., a company listing H shares.
by means of control and
mutual shareholding in the
reporting period
Changes of contrulling shareholder in reporting period
□ Applicable √ Not applicable
No changes of controlling shareholder for the Company in reporting period.
3．Information about the controlling shareholder of the Company
Actual controller nature：Local state owned assets management
Actual controller type：Legal person
Legal
Date of
Name of the actual controller representative Organization code Principal business activities
incorporation
/Leader
State-owned Assets supervision As an ad hoc body directly
Li Cheng June 26,2004 Not learn
and administration Commission under the Guangdong Provincial
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
of Guangdong Provincial People's Government,
People’s Government commissioned by the provincial
government to fulfill the
State-owned asset investor,
regulatory enterprises to
implement the rights, obligations
and responsibilities, pipe asset
control and people management.
Equity of other
domestic/foreign listed
company with share As an ad hoc body directly under the Guangdong Provincial People's Government, commissioned
controlling and share by the provincial government to fulfill the State-owned asset investor, regulatory enterprises to
participation by implement the rights, obligations and responsibilities, pipe asset control and people management.
controlling shareholder in
reporting period
Changes of controlling shareholder in reporting period
□ Applicable √ Not applicable
No changes of controlling shareholder for the Company in reporting period
Block Diagram of the ownership and control relations between the company and the actual controller
The actual controller controls the company by means of trust or managing the assets in other way
□Applicable √Not applicable
4.Particulars about other legal person shareholders with over 10% shareheld
√ Applicable □Not applicable
Legal person/person Main operation business or management
Legal person shareholder Date of foundation Register capital
in charge of the unit activities
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Construction, construction and
Guangdong Highway RMB 8827.37
Tong Degong April 16,1987 equipment; vehicle rescue services
Construction Co., Ltd. million
(operated by the branch).
5.Situation of Share Limitation Reduction of Controlling Shareholders, Actual Controllers, Restructuring Party
and Other Commitment Subjects
□Applicable √Not applicable
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
VII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period.
VIII. Information about Directors, Supervisors and Senior Executives
I. Change ein shares held by directors, supervisors and senior executives
Amount Amount
Shares of shares of shares Shares
Other
held at increased decreased held at
Office Starting date Expiry date changes
Name Positions Sex Age the at the at the the
status of tenure of tenure increase/d
year-begi reporting reporting year-gegi
ecrease
n(share) period(sh period(sh n(share)
are) are)
Zheng Board
In office Male 48 July 21,2016 July 21,2019
Renfa Chairman
Director,
Wang
General In office Male 53 July 21,2016 July 21,2019 0 135,100 135,100
Chunhua
Manager
Director,
Wang Femal
Chief In office 53 July 21,2016 July 21,2019 3,500 3,500
Ping e
Engineer
Director,
Fang Zhi In office Male 54 July 21,2016 July 21,2019
CFO
July 19,
Chen Min Director In office Male 54 July 21,2019
Zeng December 4,
Director In office Male 47 July 21,2019
Zhijun
July 21,
Du Jun Director In office Male 52 July 21,2019
Zhuo December 4,
Director In office Male 46 July 21,2019
Weiheng
July 21,
Cao Yu Director In office Male 32 July 21,2019 150,000 150,000
Huang July 21,
Director In office Male 42 July 21,2019
Hai
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Amount Amount
Shares of shares of shares Shares
Other
held at increased decreased held at
Office Starting date Expiry date changes
Name Positions Sex Age the at the at the the
status of tenure of tenure increase/d
year-begi reporting reporting year-gegi
ecrease
n(share) period(sh period(sh n(share)
are) are)
Independ
Xiao Femal July 21,
ent In office 59 July 21,2019
Duan e
director
Independ
Gu July 21,
ent In office Male 52 July 21,2019
Naikang
director
Independ
Bao July 21,
ent In office Male 39 July 21,2019
Fangzhou
director
Independ
Zhang December 4,
ent In office Male 52 July 21,2019
Hua
director
Independ
Liu December 4,
ent In office Male 52 July 21,2019
Zhonghua
director
Chairman
of the
Superviso Femal July 21,
Ling Ping In office 54 July 21,2019
ry e
Committe
e
Li Superviso Femal July 21,
In office 46 July 21,2019
Haihong r e
September
Superviso Femal
Ke Lin In office 48 15, July 21,2019
r e
Cao Superviso Femal July 21,
In office 49 July 21,2019
Xiaoying r e
Superviso Femal July 21,
Li Mei In office 48 July 21,2019 123,205 123,205
r e
Deputy
Femal July 21,
Zuo Jiang General In office 45 July 21,2019
e
Manager
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Amount Amount
Shares of shares of shares Shares
Other
held at increased decreased held at
Office Starting date Expiry date changes
Name Positions Sex Age the at the at the the
status of tenure of tenure increase/d
year-begi reporting reporting year-gegi
ecrease
n(share) period(sh period(sh n(share)
are) are)
Deputy
Cheng August 28,
General In office Male 43 July 21,2019
Rui
Manager
Secretary
Femal July 21,
He Bing to the In office 50 July 21,2019
e
Board
Secretary
Yang August 28,
to the In office Male 48 July 21,2019
Hanming
Board
Deputy
Chen July 21, April 11,
General Dimission Male
Wenmian 2016
Manager
Secretary
Liu Femal July 21, July 19,
to the Dimission
Ziaomei e 2016
Board
Wu Superviso July 21, August 29,
Dimission Male
Guangze r 2016
Ye September
July 21,
Yongchen Director Dimission Male 60 15,
g
Independ
Peng July 21, December 4,
ent Dimission Male
Xiaolei 2016
director
Independ
Tang July 21, December 4,
ent Dimission Male
Qingquan 2016
director
November
Liu July 21,
Director Dimission Male 45 17,
Weimin
head of
December
Peng the Femal July 21,
Dimission 55 25,
Xiaofang internal e
audit
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Amount Amount
Shares of shares of shares Shares
Other
held at increased decreased held at
Office Starting date Expiry date changes
Name Positions Sex Age the at the at the the
status of tenure of tenure increase/d
year-begi reporting reporting year-gegi
ecrease
n(share) period(sh period(sh n(share)
are) are)
Total -- -- -- -- -- -- 276,705 135,100 0 0 411,805
II. Change in shares held by directors, supervisors and senior executives
√ Applicable □Not applicable
Name Positions Types Date Reason
Deputy General
Chen Wenmian Dimission April 11,2017 Job changes
Manager
Secretary to the
Liu Xiaomei Dismissal July 19,2017 Resigned
Board
Wu Guangze Supervisor Dimission August 29,2017 Job changes
Ye Yongcheng Director Dimission September 15,2017 Retired
Independent
Peng Xiaolei Dimission December 4,2017 Resigned
director
Independent Departure on his
Tang Qingquan December 4,2017 Departure on his term
director term
Liu Weimin Director Dimission November 17,2017 Job adjustment
head of the
Peng Xiaofang Dismissal December 25,2018 Retired
internal audit
III.Posts holding
Work Experience in the past five years of Directors, supervisors and senior Executives in Current office
Mr. Zheng Renfa，He serves as Director, Master Degree,Senior economic engineer. From December 2005 to
January2013 ， He serves as Deputy Minister of Investment Management Department of Guangdong
Communication Group，Since January 2013，He serves Minister of Investment Management Department of
Guangdong Communication Group, Since April 21,2014, He serves as Director of the Company. from August 15,
2016, the implementation of the duties of the Board of Directors and the legal representative of the duties. From
January 4, 2017, he was the chairman of the board of directors of the Company.
Mr. Wang Chunhua, He serves as Director and Deputy General Manager of the Company, Master Degree, senior
engineer and senior economic engineer, since September 2006, he served as Deputy General Manager of the
Company.Since October 2015, He served as General director of the Company.
Ms. Wang Ping, She serves as Director and Chief Engineer of the Company, bachelor's degree, professor of
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Engineering, National registered cost engineer, Senior Economist. From February 2001 to April 2012, she
served as Minister of Infrastructure Management Department. From April 2012 , she served as chief engineer of
the Company, Since April 21, 2014, She serves as Director of the Comany.
Mr. Fangzhi , He serves as Director , Master Degree and Senior Accountant, He serves as associate director and
Deputy General Manager of Finance Center of Guangdong Communication Group, Since May 2015, He served as
Chief accountant of the Company, Since December 2015, He served as director and chief accountant of the
Company.
Chen Min, male, Han nationality, 53 years old, undergraduate degree, senior economist, corporate legal adviser,
cost engineer. In 1985 July to participate in the work, former Guangdong Province traffic school assistant lecturer,
lecturer, Guangshenzhu Expressway general contracting group contract group leader, Guangdong Provincial
Highway Engineering Construction Group Co., Ltd. Engineering Manager, deputy chief economist, total economy
Director, Deputy General Manager, General Manager, Deputy General Manager of Guangdong Nanyue Logistics
Co., Ltd., Vice Minister of Legal Affairs Department of Guangdong Communication Group Co., Ltd., December
2014, General Manager of Guangdong Jingtong Highway Engineering Construction Group Co., Ltd. He has been
the Minister of Legal Affairs of Guangdong Communications Group Co., Ltd. Since July 19, 2017, he serves as
Director of the Comany.
Mr. Zeng Zhijun, economist, is a director of the Company, with master degree. Since June 2010, he has served as
the deputy chief economist of Guangdong Provincial Expressway Co., Ltd. From January 2015 to September 2015,
he served as Minister of Investment Planning Department of Guangdong Provincial Expressway Co., Ltd; since
September 2015, he has served as Minister of Legal Affairs Department of Guangdong Provincial Expressway Co.,
Ltd. Since December 4, 2017, he serves as Director of the Comany.
Mr. Du Jun, He serves as Director, Master's degree and bachelor's degree, senior engineer, He serves as Deputy
General Manager ,director and member of party committee of Guangdong Luqiao Construction Development
Co., Ltd.Since April 2016, He served as Deputy General Manager of Guangdong Highway Construction Co.,
Ltd., Since July 21,2016, He served as Director of the Company.
Mr. Zhuo Weiheng, is a senior accountant, with bachelor degree. From January 2008 to May 2009, he served as
the minister of the financial audit department of Guangdong Provincial Highway Construction Co., Ltd. Since
May 2009, he has served as the Minister of Finance Management Department of Guangdong Provincial Highway
Construction Co., Ltd.,Since December 4, 2017, he serves as Director of the Comany.
Mr. Cao Yu, Master of Business Administration, since 2011 has served as Shanghai Fuxin high-tech (Group)
Co., Ltd. investment manager, deputy director of investment, investment director. From July 21, 2016, he is a
director of the Company.
Mr. Cao Yu, Master of Business Administration, since 2011 has served as Shanghai Fuxin high-tech (Group)
Co., Ltd. investment manager, deputy director of investment, investment director. From July 21, 2016, he is a
director of the Company.
Ms.Xiao Duan an independent director of the Company, Doctor of Economics, the Jinan University Associate
Professor of Finance and research supervisor. She used to be a researcher at the Beijing Institute of Market
Economy, executive member of the council of Guangdong shares Economic Research Association, a member of
the Taiwan Economic Research Institution. She is also the independent director of Guangdong Tianhe Agricultural
materials Co., Ltd.Sice April 2013, She served as Dorector of the Company.
Mr. Bao Fangzhou, Independent director of the Company, Master of Law. Shanghai Jin Tiancheng Law Firm,
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Senior Partner, 2008 - 2014 Former Independent Director of New Nanyang Co., Ltd. Since 2013, he has been an
independent director of Hubei Wushi Pharmaceutical Co., Ltd. since June 2016, Power Co., Ltd. Independent
Director. From July 21, 2016, he is an independent director of the Company.
Gu Naikang, Independent directors and doctorate degree of the Company. Since June 2004, he has been a
professor and doctoral tutor of Finance and Investment Department of Zhongshan University School of
Management. He is currently an independent director of Guangxi Guitang (Group) Co., Ltd., an independent
director of Dongguan Yuqiu Electronics Co., Ltd. and an independent director of Guangzhou Zhujiang Industrial
Development Co., Ltd. From July 21, 2016, he is an independent director of the Company.
Mr. Liu Zhonghua, professor of accounting, is an independent director of the Company, with master degree. In
September 2005, he was transferred to the School of Management of Guangdong University of Foreign Studies to
teach. He is currently a professor at the School of Accounting of Guangdong University of Foreign Studies, he is a
master tutor, concurrently serves as member of Accounting Society of China, executive member of China
Association of Foreign Trade and Economic Accounting, vice chairman of Guangdong Province Management
Accounting Association, executive member of Guangdong Provincial Accounting Association and member of
Guangdong Audit Society. Since December 4, 2017, he serves as Director of the Comany.
Mr. Zhang Hua, economist, is an independent director of the Company, with Master Degree. From June 2012 to
September 2016, he served as the deputy general manager of Guangzhou De’rui Investment Co., Ltd and
concurrently served as Deputy General Manager of Shenzhen Dongying Ruitong Investment Management
Partnership (Limited Partnership); since October 2016, he has served as general manager of Shanghai Er Luo
Investment Management Service Center (General Partnership). From November 2010 to January 2017, he served
as an independent director of Guangzhou Yu Yin Technology Co., Ltd. From December 2011 to September 2017,
he served as an independent director of Guangdong Electric Power Development Co., Ltd. In September 2017, he
was an independent director of Zhuhai Taichuan Cloud Community Technology Co., Ltd., Since December 4,
2017, he serves as Director of the Comany.
Ms.Ling Ping, he has served as chairman of the supervisory committee of the Company,bachelor degree, Senior
Accountant, Senior Economist, February 1996-January 2015, worked in Guangdong Provincial Highway
Construction Company, served as account, audit, deputy manager of audit Department, minister of the Audit
Department, Since January 2015, Worked at Guangdong Communication Group Co., Ltd., Currently serve as
Chairman of the exterior supervisory committee.Since March 2015, She served as Chairman of Board of
supervisor of the Company.
Ms. Li Xiaohong, Supervisors of the Company, bachelor degree, senior economist and road and bridge
engineer. Since October 2008, he has been working as a supervisory and auditing department of the Guangdong
Provincial Communications Group. From October 2008 to September 2012, he was appointed full-time supervisor
of Guangdong Expressway Co., Ltd., and since October 2012, Traffic Co., Ltd. and Guangdong Communications
Industrial Investment Co., Ltd. full-time supervisors. From July 21, 2016, he served as supervisor of the
Company.
Ms.Ke Lin, female, is 48 years old, bachelor degree, Bachelor of Science, assistant researcher. She began to take a
job in July 1991. She had successively served as cadre of personnel department, deputy head, head of the
personnel department, section chief rank cadre of discipline inspection and supervision department, director of the
commission for discipline Inspection (deputy-director level). In November 2008, she was transferred to work in
Provincial Transportation Group, successively served as member of party committee, union chairman and
discipline inspection commission secretary. From January 2013 to August 2017, she has served as party
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
committee member, discipline inspection commission secretary and chairman of the union in Yueyun
Transportation. .Since September 15, 2017, She served as supervisor of Board of supervisor of the Company.
Ms. Li Mei, Supervisors of the Company, bachelor degree and political engineer. Since April 1998, he has
been working in the Company. He has served as the deputy director of the office, the director of the office of the
party and the people, the third, fourth, fifth, sixth, seventh employee supervisor, general affairs minister and
discipline inspection committee. He is currently the vice chairman of the trade union of the Company and the
employee supervisor of the 8th Supervisory Committee.
Ms. Cao Xiaoying, Supervisors of the Company, bachelor's degree, bachelor's degree, senior economist,
deputy interpreter, senior human resource management division, senior corporate culture division. Since 2011 to
work in the Company, served as vice minister of human resources, minister. He is currently the minister of the
Party and the Communist Party of China and the employee supervisor of the 8th Supervisory Committee.
Mr. Cheng Rui, male, is 42 years old, on-job postgraduate, master of business administration, with a lawyer
qualification. He began to take a job in July 1997. He had successively served as development department staff,
deputy manager of investment management department and manager of investment management department in
Xinyue Co.,Ltd, served as Deputy General Manager of Xinyue Company in August 2015, and served as deputy
minister of strategic development department from April 2016 to August 2017. Since August 2017, he has been
the Deputy General Manager of the Company.
Ms. Zuo Jiang, Deputy General Manager of the Company, Master of Economics, Senior Economist,
Qualified as Legal Adviser of the Enterprise, Secretary of the Board of Directors. He has been working in the
Company since 1994. He has been the Minister of Securities Affairs of the Company since 1999. He has been the
Secretary of the Board of Directors and Director of Securities Affairs Department since March 2006. From
October 2015 to July 2016, he was the Deputy General Manager and Secretary of the Board of Directors And
Minister of Securities Affairs. Since October 2015, he has been the Deputy General Manager of the Company.
Ms. Peng Xiaofang , Internal audit director, Minister of ministry of supervision of audit, bachelor's degree, senior
accountant. Since April 2008, she served as Minister of Audit supervision Department of the Company. Since
March 2012, she served as head of the internal audit of the Company.
Ms. Peng Xiaofang , Internal audit director, Minister of ministry of supervision of audit, bachelor's degree, senior
accountant. Since April 2008, she served as Minister of Audit supervision Department of the Company. Since
March 2012 to December 2017,, she served as head of the internal audit of the Company. Ms. Peng Xiaofang, has
reached the retirement age and resigned as head of the internal audit of the Company from the Board of Directors
on December 25, 2017.
Ms. He Bing , general counsel, master's degree in law, enterprise legal adviser, from August 2005 to July 2012,
she served as Deputy chief economic engineer of the Company, Since July 2012, she served as Chief legal adviser
of the Company.
Mr. Yang Hanming, male, is 47 years old, undergraduate degree, senior economist, corporate legal adviser,
with the board secretary qualifications. Since March 2000, he has been successively served as deputy minister of
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
investment planning and minister of legal affairs in Guangdong Provincial Expressway Development Co., Ltd.
Since August 2014, he has been concurrently served as minister of investment and development. Since August
2017, he has been the Secretary of the Board of the Company.
Office taking in shareholder companies
√Applicable □Not applicable
Does he /she
Titles
Names of the receive
engaged in Sharting date of Expiry date of
persons in Names of the shareholders remuneration or
the office term office term
office allowance from the
shareholders
shareholder
Minister of
Investment December
Chen Min Guangdong Communication Group Yes
Management 1,2014
Dept.
Deputy
Guangdong Highway Construction Co.,
Du Jun General April 1,2016 Yes
Ltd.
Manager
Minister of
Guangdong Highway Construction Co., finance
Zhuo Weiheng May 1,2009 Yes
Ltd. Management
Dept
Minister of
September
Zeng Zhijun Guangdong Expressway Co., Ltd legal affairs Yes
1,2015
Dept
Tibet Yinyue Investment Executive
Huang Hai June 1,2015 No
Management Co., Ltd. director
Dispatche
d chairman
Guangdong Communication Group Co., of the
Ling Ping January 1,2015 Yes
Ltd. superviso
ry
committee
Full-time
Guangdong Communication Group Co.,
Li Haihong field July 21,2016 Yes
Ltd.
supervisors
Offices taken in other organizations
√Applicable □Not applicable
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Does he/she
Titles
Name of the receive
engaged in Starting date of Expiry date of
persons in Name of other organizations remuneration or
the other office term office term
office allowance from
organizations
other organization
Associate
The financial department of the school professor,Mas
Xiao Duan Yes
ofeconomics of Jinan University ter’s
supervisor
Guangdong Tianhe Agricultural materials Independe
Xiao Duan August 1,2012 Yes
Co., Ltd. nt director
Lawyer, Janupapry
Bao Fangzhou Shanghai Allbright law firm Yes
Senior partner 1,2000
Independent
Bao Fangzhou Hubei Wushi Pharmaceutical Co., Ltd. January 1,2013 Yes
director
Independent
Bao Fangzhou Laurel Power Co., Ltd. January 1,2016 Yes
director
Professor,
Finance and Investment ,School of Business
Wu Naikang doctoral January 1,2004 Yes
Sun YAT-SEN University
supervisor
Independent December
Gu Naikang Guangxi Guitang（Group）Co., Ltd. Yes
director 1,2013
Guangzhou Zhujiang Industry Development Independent
Gu Naikang May 1,2014 Yes
Co., Ltd. director
Mingyang Intelligent Energy Group Co., Independent
Gu Naikang July 1,2017 Yes
Ltd. director
Shanghai Erro Investment Management General
Zhang Hua October 1,2016 Yes
Service Centre(General partnership) Manager
Guangdong Electric Power Development Independent November September
Zhang Hua Yes
Co., Ltd. director 1,2011 1,2017
Zhuhai Taichuan Community Technology Independent
Zhang Hua September Yes
Co., Ltd . director
Professor,
College of Accounting, Guangdong September 1,
Liu Zhonghua Master’s Yes
University of Foreign Studies
supervisor
Shanghai Fuxing Technology(Group) Co., Investment
Cao Yu Yes
Ltd. director
Punishments to the current and leaving board directors, supervisors and senior managers during the report period
by securities regulators in the recent three years
□ Applicable √Not applicable
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
IV. Remuneration to directors, supervisors and senior executives
Decision-making procedures, basis for determination and actual payment of the remuneration to directors ,
supervisors and senior executives
The remuneration of members of the Eighth board of directors and supervisory committee was examined and
determined at the second provisional shareholders’ general meeting in 2016.The remuneration of the senior
executives is determined by the assets operation responsibility system in that year.
1. The directors of the Company and the controlling shareholder of the Company and its related parties, as
well as the directors of the Company, shall not receive the remuneration of the directors.
2. Directors who have not held other positions in the Company and the controlling shareholder of the
Company and its related parties are remunerated by the directors of the Company, and the standard is RMB 5,000
(tax included) per person per month. In addition, the expenses incurred by the independent directors at the board
of directors and the shareholders' general meeting and the expenses incurred in exercising their functions and
powers in accordance with the articles of association may be reimbursed in the company.
Remueration to directors, supervisors and senior executives in the reporting period
In RMB’0000
Total Whether to get
remuneration paid in the
Name Positions Sex Age Office status
received from the company related
Company party
Zheng Renfa Board Chairman Male 48 In Office 47.02 No
Director,General
Wang Chunhua Male 53 In Office 55.68 No
Manager
Director, Chief
Wang Ping Female 53 In Office 47.66 No
Engineer
Director, Chief
Fang Zhi Male 54 In Office 50.13 No
Accountant
Chen Min Director Male 54 In Office 0 Yes
Zeng Zhijun Director Male 47 In Office 0 Yes
Du Jun Director Male 52 In Office 0 Yes
Zhuo Weiheng Director Male 46 In Office 0 Yes
Cao Yu Director Male 32 In Office 6 No
Huang Hai Director Male 42 In Office 6 No
Independent
Xiao Duan Female 59 In Office 6 No
director
Independent
Gu Naikang Male 52 In Office 6 No
director
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Total Whether to get
remuneration paid in the
Name Positions Sex Age Office status
received from the company related
Company party
Independent
Bao Fangzhou Male 39 In Office 6 No
director
Independent
Zhang Hua Male 52 In Office 0.5 No
director
Independent
Liu Zhonghua Male 52 In Office 0.5 No
director
Chairman of the
Ling Ping Supervisory Female 54 In Office 0 Yes
Committee
Li Haihong Supervisor Female 46 In Office 0 Yes
Ke Lin Supervisor Female 48 In Office 15.57 No
Cao Xiaoying Supervisor Female 49 In Office 42.23 No
Li Mei Supervisor Female 48 In Office 39.95 No
Deputy General
Zuo Jiang Female 45 In Office 46.49 No
Manager
uty General
Cheng Rui Male 43 In Office 19.03 No
Manager
Chief legal
He Bing Female 50 In Office 44.89 No
adviser
Secretary to the
Yang Hanming Male 48 In Office 44.33 No
Board
Deputy General
Chen Wenmian Male 39 Dimission 17.09 No
Manager
Secretary to the
Liu Xiaomei Female 39 Dimission 25.81 No
Board
Wu Guangze Supervisor Male 50 Dimission 25.96 No
Ye Yongcheng Director Male 60 Dimission 0 Yes
Independent
Peng Xiaolei Male 65 Dimission 5.5 No
director
Independent
Tang Qingquan Male 57 Dimission 5.5 No
director
Liu Weimin Director Male 45 In Office 0 Yes
head of the
Peng Xiaofang Female 55 Dimission 36.47 No
internal audit
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Total Whether to get
remuneration paid in the
Name Positions Sex Age Office status
received from the company related
Company party
Total -- -- -- -- 600.31 --
Incentive equity to directors, supervisors or/and senior executives in the reporting period
□ Applicable √Not applicable
V. Particulars about employees.
1.Number of staff, professional structure and educational background
Number of in-service staff of the parent company(person)
Number of in-service staff of the main subsidiaries(person) 2,089
The total number of the in-service staff(person) 2,191
The total number of staff receiving remuneration in the current
2,191
period(person)
Retired staff with charges paid by the parent company and main
subsidiaries (person)
Professional
Category Number of persons（person）
Management personnel
Toll collectors 1,340
Road service personnedl
Logistical personnedl
Total 2,191
Education
Category Number of persons（person）
Holders of master’s degree or obove
Graduates of regular university
Graduates of junior colleges 1,474
Other
Total 2,191
2. Remuneration policies
According to the company's overall development plan, to further establish and improve a variety of human
resource management system, strengthen the macro salary management, to maintain the level of salary market
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
competitiveness. Advocate salary and performance related, and constantly improve the performance appraisal
mechanism, personal performance appraisal approach, staff promotion system, to develop both incentive and
restrictive salary performance policy. Think highly of the establishment and perfection of welfare system, in
accordance with the relevant provisions of the state on time and in full for the full pay pension insurance, medical
insurance, work-related injury insurance, unemployment insurance, maternity insurance, housing provident fund
and other statutory benefits, comply with the provisions on working hours, rest and vacations, the establishment of
supplementary medical insurance, enterprise annuity and welfare system.
3.Training plan
Nil
4.Outsourcing situation
□ Applicable √ No Applicable
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
IX. Administrative structure
I. General situation
The Company strictly followed the requirement of laws and regulations in ,< the Securities
Law>,< Code of Corporate Governance for Listed Companies in China>, etc. and kept on
improving corporate governance structures, improving normative operation level. Company had stipulated rules
such as , rules of procedures in three meetings, working guide of special committee in
board of directors, working guide of general manager etc. and internal control system basically covering all
operating management such as company financial management, investment management, information disclosure,
related transaction, external guarantee, fund raising etc. All rules are well implemented.
In the report period, strictly following the relevant provisions of “Company Law”and “Regulations”, the
shareholder’s meeting of our bank effectively performed the functions. The board of directors is to be responsible
for the shareholder’s meeting, to take the ultimate responsibility for the bank’s operation and management and to
convene a meeting as well as performing the function and power according to legal procedure. In line with the
attitude which is responsible for all shareholders and keeping in close contact and communication with the board
of directors and the management, the board of supervisors carries out the assessment work on duty exercising for
the board of directors and the board of supervisors, effectively performing functions and obligations of
supervision.
Does there exist any difference in compliance with the corporate governance , the PRC Company Law and the
relevant provisions of CSRC,
□ Yes √No
There exist no difference in compliance with the corporate governance , the PRC Company Law and the relevant
provisions of CSRC.
II. Independence and Completeness in business, personnel , assets, organization and finance
1. Independent business
The company mainly engaged in business is Guangfo Expressway, Fokai Expressway and Beijing-Zhuhai
Expressway Guangzhu section of the charges and maintenance work, investment in science and technology
industry and provide relevant advice.
it has invested in or holds Shenzhen Huiyan Expressway Co., Ltd., Guanghui Expressway Co., Ltd., Jiangzhong
Expressway Co., Ltd. , Zhaoqing Yuezhao Highway Co., Ltd., Ganzhou Kangda Expressway Co., Ltd ,Ganzhou
Gankang Expressway Co., Ltd., Guangdong Yueke Technology Micro Loan Co., Ltd., Guangdong Guangle
Expressway Co., Ltd., and Guoyuan Securities Co., Ltd.
The Company has outstanding main operation, independent and complete business and the ability of independent
operation. All business decisions of the Company were made independently, being completely separated from the
shareholder with actual control. Related transactions were carried out in light of the principle of fair transaction,
which did not harm the interests of the Company and other shareholders of the Company. The content of related
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
transactions was fully, timely and accurately disclosed, which did not have negative influence on the Company.
2. Complete assets
The relationship of the Company's property right is clear. The assets injected by shareholders in the Company
are independent and complete and have clear property right. All capital was paid up and relevant formalities of
property right change were settled.
3. Independent personnel
As for personnel relationship, the general manager, deputy general managers, the secretary to the board of
directors and financial controller of the Company were full-time employees and received salary from the
Company, who did not concurrently hold positions at the parent company.
All directors and supervisors of the Company were elected through legal procedure. The general manager,
deputy general managers, chief accountant, chief economic engineer and chief engineer were directly appointed
by the board of directors. Other managerial personnel of all levels were directly appointed by the general manager.
The Company owns independent power of personnel appointment and removal.
4. Independent finance
The Company, including subsidiaries established independent accounting department，independent accounting
system and regulations on financial management.
The Company independently opened bank account and did not deposit funds in the accounts of the finance
company or settlement center of the majority shareholder. The Company independently paid tax. The Company's
financial decisions were independently made. The majority shareholder did not interfere with the use of funds by
listed companies.
5. Independent organization
The board of directors, the supervisory committee and other internal organs of the Company operated
independently. Its organs are complete and independent.
III. Horiontal Competitions
□ Applicable √ Not applicable
IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Description of
Sessions Meeting Date Resolution Disclosure date Disclosure index
proposals
Announcement of
Resolutions of the
Annual
2016 Shareholders’ shareholders' general
Shareholders’ 68.94% April 28,2017 April 29,2017
general meeting meeting in
General Meeting
2016.www.cninfo.co
m.cn
The First provisional Announcement of
Provisional
shareholders’ Resolutions of the
shareholders’ 65.73% Julty 19,2017 July 20,2017
General meeting in First provisional
General meeting
2017 shareholders' general
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
meeting in 2017.
www.cninfo.com.cn
Announcement of
The Second
Resolutions of the
provisional Provisional
September 15, September 16, Second provisional
shareholders’ shareholders’ 56.08%
2017 2017 shareholders' general
General meeting in General meeting
meeting in 2017
2017
www.cninfo.com.cn
Announcement of
The Third
Resolutions of the
provisional Provisional
Third provisional
shareholders’ shareholders’ 67.39% December 4,2017 December 5,2017
shareholders' general
General meeting in General meeting
meeting in 2017.
2017
www.cninfo.com.cn
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √Not applicable
V. Responsibility performance of independent directors in report period
1. The attending of independent directors to board meetings and shareholders’ general meeting
The attending of independent directors
Number of Failure to Number of The
Number of
Board meetings Number of personally attend general meeting
Independent Number of spot meetings Number of
necessary to be attendances by board meetings of shareholders
Directors attendances attended by absence
attended in the representative successively
Communication
reporting period twice (Yes/No)
Xiao Duan 10 2 8 0 0 No
Gu Naikang 10 2 8 0 0 No
Bao Fangzhou 10 2 8 0 0 No
Liu Zhonghua 1 0 1 0 0 No
Zhang Hua 1 0 1 0 0 No
Tang Qingquan 9 2 7 0 0 No
Peng Xiaolei 9 2 7 0 0 No
Notes to failure to personally attend Board Meetings Successively Twice
Nil
Notes to failure to personally attend Board Meetings Successively Twice
Nil
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
3. Other notes to duty performance of independent directors
Has an independent director’s advice to the Company been accepted
√Yes □No
Explanation on acceptance of or failure to accept an independent director’s advice to the Company.
Independent directors seriously exercise the rights conferred by law, keep abreast of the company's production and
management information, concerned about the company's comprehensive development, actively attend relevant
meetings held by the company in 2016, published an independent and objective advice on relevant matters for
consideration by the Board of Directors of the Company. Faithfully perform their duties, give full play to the
independent role of the independent directors, to safeguard the interests of the company as a whole, and to
safeguard the legitimate rights and interests of all shareholders, especially minority shareholders. The advices on
business development and corporate governance given by independent directors can be adopted.
VI. Duty Performance of Special Committees under the Board of Directors in the Reporting Period
1. The board of directors has an audit committee composed of three directors. i.e., Mr. Tang Qingquan , Mr.Peng
Xiaolei and Mr.Fang Zhi. The particulars of the work of the audit committee in the report period are as follows:
According to the Rulels of Procedure of Audit Committee of the Board of Directors and Working
Regulations of Audit Committee of the Board of Directors on Annual Report and the work requirements of CSRC
and Shenzhen Stock Exchange on annual report for 2016 the audit committee carried out a series of work for the
annual audit of the Comopany for 2016, including deciding the working schedule for the audit of financial report
for the report year after consultation with the certified public accountants in charge, reviewing the financial report
prepared by the Company and forming written opinions, issuing the Urging Letter for Audit to certified public
accountants and requiring certified public accountants to carry out overall work plan for audit and submit relevant
progress report to the audit committee, reviewing the financial report for 2016 submitted by the Finance Dept. of
the Company (on which the certified public accountants in charge of annual audit issued standard unqualified
opinions) and giving written auditing opinions.
2. The board of directors has a remuneration committee composed of three directors, i.e., Mr. Bao Fangzhou, Ms.
Xiao Duan and Mr Huang Hai. The particulars of the work of the remuneration committee in the report period are
as follows:
According to the Company's Regulations on Performance Appraisal and Remuneration Management of Senior
Executives, the remuneration and appraisal committee audited the remuneration disclosed by the Company's
directors, supervisors and senior executives for 2016 and expressed auditing opinions and examined and adopted
the remuneration scheme and appraisal scheme for senior executives of the Company for 2016.
3.In the report period, The board of directors has an strategy committee composed of five directors. i.e., Mr. Wang
Chunhua, Mr. Tang Qingquan, Mr.Gu Naikang, Mr.Bao Fangzhou .
Strategy Committee will strengthen the company's strategic direction, strategic planning, research, and supervise
the implementation of corporate strategies, provide timely advice to the Board decisions on strategic development.
VII. Work of the supervisory Committee
Did the supervisory Committee find any risk existing in performing the supervision activities in the reporting
period
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
□Yes √No
The supervisory Committee has no objection aginst any matters under supervision in the reporting period
VIII. Assessment and incentive Mechanism for Senior executives
The Company implemented position responsibility to every senior management, and made clear regulations on
job standards, appraisal standards. The senior management staff shall report to worker representatives and accept
comments. If not qualified in successively 2 years, they will be demoted or dismissed.
IX.Internal Control
I. Specific situations on major defects of internal control discovered during report period
□ Yes √ No
II. Self-evaluation report on internal control
Disclosure date of appraisal report on
March 28,2018
internal control
Disclosure index of appraisal report on
www.cninfo.com.cn
internal control
The ratio of the total assets of units
included in the scope of evaluation
accounting for the total assets on the 100.00%
company's consolidated financial
statements
The ratio of the operating income of units
included in the scope of evaluation
accounting for the operating income on the 100.00%
company's consolidated financial
statements
Standards of Defects Evaluation
Type Financial Report Non-financial Report
The qualitative criteria for the evaluation of The qualitative criteria for the evaluation of
internal control deficiencies in financial reports internal control deficiencies in non-financial
confirmed by the Company is as follows:The reports confirmed by the Company is as
following situations (including but not limited to) shall be follows:Material deficiencies: serious violations and
deemed as being sentenced to heavy fines or need taking criminal
“material deficiencies” in the internal control of the responsibility; utterly disregard the rules of law, illegal
Standards of
financial report. behaviors in the operation and management
Quantitation
(1) There are major frauds made by the directors, or are particularly severe and the circumstance is very bad,
supervisors, or senior which leads to the suspension or cessation
management personnel in the company’s management to the company's daily operation and management
activities; activities, and leads to the audit report with a
(2)There are material misstatements in the current disclaimer of opinion or a negative opinion issued by the
financial report but the CPA; the negative news spread all over the
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
internal control failed to find the misstatements during its country, which caused severe damage to the company’s
operation; reputation; resulted in decease of a number
(3) The supervisions made by the company's audit of workers or citizens, or resulted in damages that are
committee and the internal unable to recover to workers or citizens;
audit organization on the internal control are invalid; reached the circumstance(grade II) of major
(4) The control environment is invalid; environmental event. Significant deficiencies: illegal
(5)The material deficiencies found and reported to the and being punished; disregard the requirements of the
management but are company’s management system and the
not corrected within a reasonable time; relevant rules of law, there are illegal acts of using the
(6)There is an administrative punishment from the authority to seek illegal interests in the work,
securities regulatory which significantly affect the efficiency and the result of
institution due to accounting errors. daily operation and management activities
The following situations (including but not limited to) and lead to the audit report with qualified opinion issued
shall be deemed as by the CPA; the negative news spread in a
“significant deficiencies” in the internal control of the region, which caused the large-extent damage to the
financial report and company’s reputation; resulted in decease of a
there are intense signs for the situations becoming worker or a citizen, or resulted in damages that need long
“material deficiencies”: (1) Frauds made by staff in key time to recover to workers or citizens;
positions; reached the circumstance(grade Ⅲ) of big environmental
(2)The supervisory function on compliance is invalid, and event.
the violations of General deficiencies: minor violations; the awareness of
regulations may have a significant impact on the management under in compliance with
reliability of the financial laws and regulations is weak, lacking of business and
report; management knowledge, and there are phenomena such as
(3)The significant deficiencies reported to the being slack in performing management duties, being
management but are not passive and poorly execute
corrected within a reasonable period. the institution in the work, which shall affect the
The following situations (including but not limited to) efficiency and the result of daily operation and
shall be deemed as management activities and lead to small effects to the
“general deficiencies” in the internal control of the company’s management goal; the negative
financial report. news spread within the company, which caused the
(1) Frauds made by staff in non key positions, or business little-extent damage to the company’s
operators execute reputation; shortly affected the health of the workers or
the implementation procedures not strictly conforming to citizens and the workers or citizens can be
the company’s recovered in a short time; reached the circumstance(grade
policy but resulted in no significant impact on the Ⅳ) of general environmental event.
reliability of the financial
report.
(2)The supervisory function on compliance is invalid, and
the violations of
regulations may not have a significant impact on the
reliability of the financial
report;
(3)The general deficiencies reported to the management
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
but are not corrected
within a reasonable period.
The qualitative criteria for the
evaluation of internal control
deficiencies in noninancial reports
confirmed by the Company is as
The qualitative criteria for the evaluation of internal control
follows:Material deficiencies: potential
deficiencies in financial reports confirmed by the Company is as misstatement≧1% of the total amount of
follows:Material deficiencies: potential misstatement≧1% of the total the owner’s equity or
amount of the
RMB 200 million; significant
Standards of owner’s equity or RMB 200 million; significant deficiencies: 0.5% of the
deficiencies: 0.5% of the total amount of
Quantitation totalamount of the owner’s equity or RMB 100 million≤potential
the owner’s equity or RMB
misstatement＜1% of the total amount of the owner’s equity or RMB 200
100 million≤potential misstatement＜
million; general deficiencies: potential misstatement＜0.5% of the total
1% of the total amount of the owner’s
amount of the owner’s equity or RMB 100 million Standards of
equity or RMB 200
Quantitation
million; general deficiencies: potential
misstatement＜0.5% of the total amount
of the owner’s
equity or RMB 100 million
Number of major defects in financial
reporting（a）
Number of major defects in non financial
reporting (a)
Number of important defects in financial
reporting（a）
Number of important defects in non
financial reporting（a）
X. Internal Control audit report
√ Applicable □Not applicable
Review opinions in the internal control audit report
In our opinion, Guangdong Expressway has maintained effective financial report internal control in all material aspects according
to the basic standards for Enterprise internal control and relevant regulations ended December 31, 2017.
Disclosure of internal audit report Disclosure
Disclosure date of audit report
March 28,2018
of internal control (full-text)
Internal audit report’s opinion Unqualified audit opinion
Non-financial reporting the
No
existence of significant deficiencies
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Has the CPAs issued a qualified auditor’s report of internal control .
□ Yes √No
Does the internal control audit report issued by the CPAs agree with the self-assessment report of the Board of Directors
√Yes □No
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
X. Corporation bonds
Whether or not the Company public offering corporation bonds in stock exchange, which undue or without
payment in full at maturity on the approval date for annual report disclosed
No
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
XI.Financial Report
I. Audit report
Type of audit opinion Standard Unqualified audit opinion
Guangdong Zhengzhong Zhujiang Certified Public Accountants
Name of audit firm
Co., Ltd.(Special General Partnership)
Name of Certified public Accountant Feng Kuncong, Xu Jihong
Auditors’ Report
To all shareholders of Guangdong Provincial Expressway Development Co., Ltd.
I. Opinion
We have audited the financial statements of Guangdong Provincial Expressway Development Co., Ltd.
(hereinafter referred to as \"the Company\"), which comprise the balance sheet as at December 31, 2017, and the
income statement, the statement of cash flows and the statement of changes in owners' equity for the year then
ended and notes to the financial statements.
In our opinion, the attached financial statements are prepared, in all material respects, in accordance with
Accounting Standards for Business Enterprises and present fairly the financial position of the Company as at
December 31, 2017 and its operating results and cash flows for the year then ended.
II. Basis for Our Opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants in China. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the
Financial Statements section of our report. According to the Code of Ethics for Chinese CPA, we are independent
of the Company in accordance with the Code of Ethics for Chinese CPA and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
III. KeyAudit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
（1）Long-term Eqiuty Investment
①Factual description
As described in \"Annotation 9 of major item in Note V to the Financial Statement ---- Long-term Equity
Investments”, the amount of long-term equity investment of the Company was RMB 3,047,275,000 as of
December 31, 2017.
Guangdong Expressway bought shares from Shenzhen Huiyan Expressway Co., Ltd., Guangdong Guanghui
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Expressway Co., Ltd. and Guoyuan Securities Co., Ltd. Guangdong Expressway Co., Ltd. Management
(hereinafter referred to as the \"Management\") considered that it can actively participate in the operation and
financial policies of such joint ventures and associates, so Guangdong Expressway Co., Ltd. had a significant
influence on them. The financial statements of these joint ventures and associates have a significant impact on the
consolidated financial statements of Guangdong Expressway Co., Ltd.
②How our audit addressed the matter
We have implemented the following major audit procedures to respond:
Check the joint venture agreement, articles of association for the long-term equity investment newly
increased in current period, and Guangdong Expressway Co., Ltd. appoints directors and participates in its
operation and decision-making; Obtain the capital verification report of the Investee to confirm whether the
long-term equity investment meets the provisions of investment contract and the agreement and whether the
accounting treatment is correct.
Analyze the holding intention and ability of the management of Guangdong Expressway Co., Ltd. on the
long-term equity investment and review the correctness of the long-term equity investment classification.
Inspect the resolutions of the Board of Directors and the Shareholders’ Meeting of the joint ventures and
associates, and evaluate the actual impact of the Guangdong Expressway Co., Ltd. on the major decisions and
operation-related activities of such joint ventures and associates.
The review procedures are conducted for the financial statements of the joint ventures and associates to
verify the net gains and losses of the Investee after adjusting based on the principle of materiality and on the basis
of the identifiable assets fair values of the joint ventures and associates obtained during investments.
The investment gains and losses recalculated are checked with the investment gains and losses calculated by
audited unit and made appropriate adjustments.
Pay attention to whether the accounting treatment of Guangdong Expressway is correct in case of its joint
ventures and associates generating net loss or achieving profit in subsequent periods.
Long-term equity investments are inspected one by one, and judge whether there is any indication of
impairment for the long-term equity investment based on various changes such as the operating policies, legal
environment, market demand, industry and profitability of Guangdong Expressway Co., Ltd.. At the same time,
check the correctness of impairment provision calculation.
(2) Depreciation of fixed assets road property
①Factual description
As described in \"Annotation 11 of major item in Note V to the Financial Statement ---- Fixed Assets”, the
amount of fixed assets road property of the Company was RMB 15,538,140,500 and the accumulated depreciation
amount of road property was RMB7,454,530,800 as of December 31, 2017.
At present, Guangdong Expressway is amortized according to the workload method, which involves the
estimation of Guangdong Expressway Co., Ltd.. on the estimated total traffic flow and the estimation is uncertain.
When there is a significant difference between the estimated total traffic flow and the actual measurement result,
the road fixed assets depreciation shall be adjusted accordingly. At the same time, various factors consideration
and the related data estimation are involved in the traffic flow forecasting model. If the amortization rate and the
annual average increment rate are not estimated properly, the depreciation amount of expressway property will be
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
wrong to generate the risk of material misstatement.
Fixed asset road property is the core asset of Guangdong Expressway Co., Ltd. Depreciation of expressway
property has a significant impact on annual vehicle travel costs and expenses, so the workload method for
amortization of fixed assets road property is recognized as a key audit matter.
②How our audit addressed the matter
The procedures of our management for amortization of expressway property with workload method mainly
include:
Obtain forecast report from an external independent professional organization and review its key
assumptions, while comparing its key assumptions with the expressway planning of the government transport
sector and reviewing the qualifications, professional competence and independence of external independent
professional organization;
Check whether the actual traffic flow data applied by Guangdong Expressway Co., Ltd. in the process of
depreciation calculation of fixed assets road property is consistent with the actual traffic flow data obtained by
Guangdong Expressway Co., Ltd. from external service units;
To understand the method of forecasting the traffic flow of the future remaining operation period used in the
traffic flow forecast report of an independent external professional organization and to evaluate the reliability of
the traffic flow forecast report by comparing the forecasting traffic flow in the past years with the actual traffic
flow in the period.
Depreciation of fixed assets road property is to be re-calculated to verify the correctness of the depreciation
amount of fixed assets road property in the financial statements.
(3) Deferred income tax assets related to deductible losses
①Factual description
As described in \"Annotation 16 of major item in Note V to the Financial Statement ---- Deferred Income Tax
Assets”, the amount of the deferred tax assets of the Company was RMB335,299,000 of which the deferred
income tax asset confirmed without making up for the tax loss was RMB193,414,700 as of December 31, 2017.
The Guangdong Expressway Headquarter has larger tax losses that have not been made up during 2012 to
2016 . On August 1, 2017, it offset with the corresponding taxable income generated after absorbing and
combining Fokai Company, a wholly-owned subsidiary of Guangdong Expressway . The Company initially
estimated and confirmed the deferred income tax assets of RMB 220,270,600. When confirming the deferred
income tax assets, the Management judges the Guangdong Expressway . Headquarter is likely to have sufficient
taxable income to offset the deductible losses prior to the expiration of the deductible losses according to the
financial forecast of the Guangdong Expressway . Headquarter in the future. As for the evaluation on whether the
deferred tax assets will be realized in the future, it needs the Management to make significant judgments and its
estimates and assumptions are with certain uncertainties.
②How our audit addressed the matter
Our procedures for the accounting estimates of deferred income tax assets of Guangdong Expressway Co.,
Ltd. mainly include:
We have consulted the 2016 Annual Settlement and Payment Report of Guangdong Expressway Co., Ltd.
and confirmed that its compensated loss amount was RMB777,658,600 as of December 31, 2017.
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
We communicated with our tax experts to confirm that the uncompensated losses can be offset by the
combined taxable income
Obtain the financial forecast of Guangdong Expressway Co., Ltd. Headquarter approved by the Management
in the future, assess whether the preparation complies with the industry and its own circumstances, and consider
the impact of relevant special events on the reliability of future financial projections.
Review whether the deferred income tax assets is confirmed by taking the taxable incomes that is likely to be
obtained in the future to deduct the deductible losses as the limit;
Audit, recalculation and other auditing procedures are conducted, and the accuracy of relevant accounting
treatment on deferred income tax assets that should be recognized by deductible losses of Guangdong Expressway
Co., Ltd. shall be reviewed.
IV. Other information
The management of the Company is responsible for the other information. The other information comprises
information of the Company's annual report in 2017, but excludes the financial statements and our auditor's report.
Our opinion on the financial statements does not cover the other information and we do not and will not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
identified above and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this
auditor's report, we conclude that there is a material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard
V. Responsibilities of Management and Those Charged with Governance for the Financial Statements
The Company's management is responsible for preparing the financial statements in accordance with the
requirements of Accounting Standards for Business Enterprises to achieve a fair presentation, and for designing,
implementing and maintaining internal control that is necessary to ensure that the financial statements are free
from material misstatements, whether due to frauds or errors.
In preparing the financial statements, management of the Company is responsible for assessing the Company's
ability to continue as a going concern, disclosing matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's financial reporting process.
VI. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the audit standards will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, omissions,
misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management of the Company.
(4) Conclude on the appropriateness of using the going concern assumption by the management of the Company,
and conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures
in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may
cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express an opinion on the financial statements and bear all liability for the
opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit matters, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Guangdong Zhengzhong Zhujiang Certified Public Accountants Co., Ltd.(Special General Partnership)
Certified Public Accountant of China:Feng Kuncong
Certified Public Accountant of China:Xu Jihong
Guangzhou China March 27, 2018
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
II.Financial Statement
Currency unit for the statements in the notes to these financial statements: RMB
1. Consolidated balance sheet
Prepared by:：Guangdong Provincial Expressway Development Co., Ltd.
December 31,2017
In RMB
Items At the end of term Beginning of term
Current asset：
Monetary fund 2,363,042,700.42 2,603,279,644.25
Settlement provision 0.00 0.00
Outgoing call loan 0.00 0.00
Financial assets measured at fair
value with variations accounted into 0.00 0.00
current income account
Derivative financial assets 0.00 0.00
Bill receivable 0.00 0.00
Account receivable 92,642,625.45 40,681,197.01
Prepayments 4,451,901.75 2,860,130.35
Insurance receivable 0.00 0.00
Reinsurance receivable 0.00 0.00
Provisions of Reinsurance contracts
0.00 0.00
receivable
Interest receivable 0.00 0.00
Dividend receivable 0.00 0.00
Other account receivable 15,415,512.07 25,167,879.53
Repurchasing of financial assets
Inventories 323,888.89
Assets held for sales
Non-current asset due in 1 year 55,669.14 55,719.14
Other current asset 76,576.08 0.00
Total of current assets 2,475,684,984.91 2,672,368,459.17
Non-current assets：
Loans and payment on other’s behalf
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Items At the end of term Beginning of term
disbursed
Disposable financial asset 1,751,357,624.93 1,718,421,932.77
Expired investment in possess 0.00 0.00
Long-term receivable 0.00 0.00
Long term share equity investment 3,047,275,000.00 2,220,805,130.31
Property investment 2,755,757.68 3,219,971.08
Fixed assets 8,505,434,890.71 9,285,823,302.77
Construction in progress 356,062,655.95 149,244,110.30
Engineering material 1,549,556.00 1,549,556.00
Fixed asset disposal 0.00 0.00
Production physical assets 0.00 0.00
Gas & petrol 0.00 0.00
Intangible assets 7,096,435.17 6,138,294.90
R & D petrol 0.00 0.00
Goodwill 0.00 0.00
Long-germ expenses to be amortized 92,768.83 1,763,966.07
Defeered income tax asset 335,299,025.28 10,810,322.94
Other non-current asset 40,706,394.26 2,300,170.28
Total of non-current assets 14,047,630,108.81 13,400,076,757.42
Total of assets 16,523,315,093.72 16,072,445,216.59
Current liabilities
Short-term loans
Loan from Central Bank
Deposit received and hold for others
Call loan received
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Bill payable
Account payable 266,934,026.99 299,414,047.07
Advance payment 14,856,113.90 17,440,023.40
Selling of repurchased financial assets 0.00 0.00
Fees and commissions receivable 0.00 0.00
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Items At the end of term Beginning of term
Employees’ wage payable 11,334,182.16 8,840,599.13
Tax payable 428,647,394.29 106,370,898.31
Interest payable 8,494,355.93 8,945,283.52
Dividend payable 26,840,792.20 12,506,777.92
Other account payable 86,663,237.94 134,266,141.34
Reinsurance fee payable 0.00 0.00
Insurance contract provision 0.00 0.00
Entrusted trading of securities 0.00 0.00
Entrusted selling of securities 0.00 0.00
Liabilities held for sales 0.00 0.00
Non-current liability due in 1 year 1,218,610,000.00 957,880,000.00
Other current liability 0.00 0.00
Total of current liability 2,062,380,103.41 1,545,663,770.69
Non-current liabilities：
Long-term loan 4,744,170,000.00 5,402,780,000.00
Bond payable 0.00 0.00
Including：preferred stock 0.00 0.00
Sustainable debt 0.00 0.00
Long-term payable 2,022,210.11 2,022,210.11
Long-term payable employees’s
0.00 0.00
remuneration
Special payable 0.00 0.00
Expected liabilities 0.00 0.00
Deferred income 0.00 0.00
Deferred income tax liability 260,632,098.75 278,463,647.00
Other non-current liabilities 0.00 0.00
Total non-current liabilities 5,006,824,308.86 5,683,265,857.11
Total of liability 7,069,204,412.27 7,228,929,627.80
Owners’ equity
Share capital 2,090,806,126.00 2,090,806,126.00
Other equity instruments 0.00 0.00
Including：preferred stock 0.00 0.00
Sustainable debt 0.00 0.00
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Items At the end of term Beginning of term
Capital reserves 2,510,069,749.76 2,508,408,342.99
Less：Shares in stock 0.00 0.00
Other comprehensive income 327,263,824.17 402,285,954.24
Special reserves 0.00 0.00
Surplus reserves 544,821,130.03 366,956,549.89
Common risk provision 0.00 0.00
Undistributed profit 3,550,110,288.49 2,920,563,328.27
Total of owner’s equity belong to the
9,023,071,118.45 8,289,020,301.39
parent company
Minority shareholders’ equity 431,039,563.00 554,495,287.40
Total of owners’ equity 9,454,110,681.45 8,843,515,588.79
Total of liabilities and owners’ equity 16,523,315,093.72 16,072,445,216.59
Legal Representative:Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
2.Parent Company Balance Sheet
In RMB
Items At the end of term Beginning of term
Current asset：
Monetary fund 2,130,475,892.67 1,795,455,123.88
Financial assets measured at fair value
with variations accounted into current 0.00 0.00
income account
Derivative financial assets 0.00 0.00
Bill receivable 0.00 0.00
Account receivable 19,001,899.29 0.00
Prepayments 1,520,014.23 2,059,362.84
Interest receivable 2,070,385.95 34,833.33
Dividend receivable 10,000,000.00 24,000,000.00
Other account receivable 5,298,202.17 2,350,265.24
Inventories 0.00 0.00
Assets held for sales 0.00 0.00
Non-current asset due in 1 year 80,000,000.00 95,000,000.00
Other current asset 0.00 0.00
Total of current assets 2,248,366,394.31 1,918,899,585.29
Non-current assets：
Disposable financial asset 1,751,357,624.93 1,718,421,932.77
Expired investment in possess 0.00 0.00
Long-term receivable 0.00 0.00
Long term share equity investment 8,216,937,219.66 7,385,967,349.97
Property investment 2,503,619.43 2,967,832.83
Fixed assets 5,784,192,105.58 2,744,611.16
Construction in progress 353,858,869.95 0.00
Engineering material 0.00 0.00
Fixed asset disposal 0.00 0.00
Production physical assets 0.00 0.00
Gas & petrol 0.00 0.00
Intangible assets 2,856,323.67 725,234.38
R & D petrol 0.00 0.00
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Items At the end of term Beginning of term
Goodwill 0.00 0.00
Long-germ expenses to be amortized 0.00 1,559,874.44
Deferred income tax asset 335,050,091.31 0.00
Other non-current asset 827,775,329.66 847,903,684.98
Total of non-current assets 17,274,531,184.19 9,960,290,520.53
Total of assets 19,522,897,578.50 11,879,190,105.82
Current liabilities
Short-term loans
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Bill payable
Account payable 200,070,986.17 0.00
Advance payment 0.00 0.00
Employees’ wage payable 5,419,848.48 1,347,078.47
Tax payable 12,893,797.03 1,986,670.18
Interest payable 7,901,914.26 4,469,288.30
Dividend payable 14,340,792.20 12,506,777.92
Other account payable 4,481,086,033.30 1,989,088.70
Liabilities held for sales 0.00 0.00
Non-current liability due in 1 year 968,610,000.00 50,200,000.00
Other current liability 644,691,748.64 836,363,256.69
Total of current liability 6,335,015,120.08 908,862,160.26
Non-current liabilities：
Long-term loan 4,545,170,000.00 2,999,700,000.00
Bond payable 0.00 0.00
Including：preferred stock 0.00 0.00
Sustainable debt 0.00 0.00
Long-term payable 2,022,210.11 2,022,210.11
Employees’ wage payable 0.00 0.00
Special payable 0.00 0.00
Expected liabilities 0.00 0.00
Deferred income 0.00 0.00
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Items At the end of term Beginning of term
Deferred income tax liability 108,805,411.60 0.00
Other non-current liabilities 0.00 0.00
Total of Non-current liabilities 4,655,997,621.71 3,001,722,210.11
Total of liability 10,991,012,741.79 3,910,584,370.37
Owners’ equity
Share capital 2,090,806,126.00 2,090,806,126.00
Other equity instrument 0.00 0.00
Including：preferred stock 0.00 0.00
Sustainable debt 0.00 0.00
Capital reserves 2,921,957,981.38 3,359,791,693.12
Less：Shares in stock 0.00 0.00
Other comprehensive income 327,263,824.17 402,285,954.24
Special reserves 0.00 0.00
Surplus reserves 528,976,846.38 351,112,266.24
Undistributed profit 2,662,880,058.78 1,764,609,695.85
Total of owners’ equity 8,531,884,836.71 7,968,605,735.45
Total of liabilities and owners’ equity 19,522,897,578.50 11,879,190,105.82
Legal Representative:Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
3.Consolidated Income statement
In RMB
Items Report period Same period of the previous year
I. Income from the key business 3,089,055,399.21 2,825,049,808.36
Incl：Business income 3,089,055,399.21 2,825,049,808.36
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 1,700,430,222.02 1,852,134,692.49
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Items Report period Same period of the previous year
Incl：Business cost 1,247,122,353.35 1,281,032,560.50
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 16,000,201.45 40,582,167.79
Sales expense
Administrative expense 189,585,575.97 189,789,891.95
Financial expenses 247,306,751.08 340,854,007.43
Asset impairment loss 415,340.17 -123,935.18
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss） 448,268,367.19 441,537,648.28
Incl: investment gains from affiliates 423,940,445.45 395,658,692.77
Gains from currency exchange（“-”for
loss）
Assets dispose Loss 10,105,140.34
Other income
III. Operational profit（“-”for loss） 1,836,893,544.38 1,424,557,904.49
Add ：Non-operational income 65,779,816.71 66,845,348.98
Less：Non business expenses 6,681,492.26 4,838,502.85
IV.Total profit(“-”for loss) 1,895,991,868.83 1,486,564,750.62
Less：Income tax expenses 185,768,181.41 314,207,043.18
V. Net profit 1,710,223,687.42 1,172,357,707.44
1.Net continuing operating profit 1,710,223,687.42 1,172,357,707.44
2.Termination of operating net profit
Net profit attributable to the owners of
1,509,922,398.70 1,001,205,945.39
parent company
Minority shareholders’ equity 200,301,288.72 171,151,762.05
VI. Other comprehensive income -75,022,130.07 -77,634,131.52
Net of profit of other comprehensive inco -75,022,130.07 -77,634,131.52
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Items Report period Same period of the previous year
me attributable to owners of the parent co
mpany.
（I）Other comprehensive income items
that will not be reclassified into
gains/losses in the subsequent accounting
period
1.Re-measurement of defined benefit pla
ns of changes in net debt or net assets
2.Other comprehensive income under the
equity method investee can not be reclass
ified into profit or loss.
（II）
Other comprehensive income that will be -75,022,130.07 -77,634,131.52
reclassified into profit or loss.
1.Other comprehensive income under the
equity method investee can be reclassifie 847,589.37
d into profit or loss.
2.Gains and losses from changes in fair v
-75,869,719.44 -77,634,131.52
alue available for sale financial assets
3.Held-to-maturity investments reclassifi
ed to gains and losses of available for sal
e financial assets
4.The effective portion of cash flow hedg
es and losses
5.Translation differences in currency fina
ncial statements
6.Other
Net of profit of other comprehensive inco
me attributable to Minority shareholders’
equity
VII. Total comprehensive income 1,635,201,557.35 1,094,723,575.92
Total comprehensive income
attributable to the owner of the parent 1,434,900,268.63 923,571,813.87
company
Total comprehensive income
200,301,288.72 171,151,762.05
attributable minority shareholders
VIII. Earnings per share
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Items Report period Same period of the previous year
（I）Basic earnings per share 0.72 0.52
(II)Diluted earnings per share 0.72 0.52
The current business combination under common control, the net profits of the combined party before achieved ne
t profit of RMB 0.00, last period the combined party realized RMB0.00.
Legal Representative:Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
4. Income statement of the Parent Company
In RMB
Items Report period Same period of the previous year
I. Income from the key business 633,884,348.76 51,258,350.04
Incl：Business cost 334,909,223.31 464,213.40
Business tax and surcharge 3,307,085.26 540,992.88
Sales expense 0.00 0.00
Administrative expense 88,330,754.08 71,990,670.43
Financial expenses 161,543,283.48 147,678,306.36
Asset impairment loss 0.00 -124,584.54
Add：Gains from change of fir value
0.00 0.00
（“-”for loss）
Investment gain（“-”for loss） 1,543,339,240.39 882,384,069.76
Incl: investment gains from affiliates 423,940,445.45 429,826,747.82
Assets disposal income
Other income
II. Operational profit（“-”for loss） 1,589,133,243.02 713,092,821.27
Add ：Non-operational income 1,954,480.96 49,968.04
Less：Non business expenses 993,641.04
III.Total profit(“-”for loss) 1,590,094,082.94 713,142,789.31
Less：Income tax expenses -188,551,718.47 0.00
IV. Net profit（“-”for net loss） 1,778,645,801.41 713,142,789.31
1.Net continuing operating profit 1,778,645,801.41 713,142,789.31
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Items Report period Same period of the previous year
2.Termination of operating net profit
V.Net of profit of other comprehensive i
-75,022,130.07 -77,634,131.52
ncome
（I）Other comprehensive income
items that will not be reclassified into
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pl
ans of changes in net debt or net assets
2.Other comprehensive income under th
e equity method investee can not be recl
assified into profit or loss.
（ II ）
Other comprehensive income that will b -75,022,130.07 -77,634,131.52
e reclassified into profit or loss.
1.Other comprehensive income under th
e equity method investee can be reclassi 847,589.37 0.00
fied into profit or loss.
2.Gains and losses from changes in fair
-75,869,719.44 -77,634,131.52
value available for sale financial assets
3.Held-to-maturity investments reclassif
ied to gains and losses of available for s
ale financial assets
4.The effective portion of cash flow hed
ges and losses
5.Translation differences in currency fin
ancial statements
6.Other
VI. Total comprehensive income 1,703,623,671.34 635,508,657.79
VII. Earnings per share：
（I）Basic earnings per share
(II)Diluted earnings per share
Legal Representative:Zheng Renfa
General Manager: Wang Chunhua
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
5. Consolidated Cash flow statement
In RMB
Items Report period Same period of the previous year
I.Cash flows from operating activities
Cash received from sales of goods or
3,136,065,844.60 2,899,343,557.24
rending of services
Net increase of customer deposits
and capital kept for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from
other financial bodies
Cash received against original insurance
contract
Net cash received from reinsurance
business
Net increase of client deposit and
investment
Net increase of trade financial asset
disposal
Cash received as interest, processing fee
and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Tax returned
Other cash received from business
100,599,558.66 60,544,365.40
operation
Sub-total of cash inflow 3,236,665,403.26 2,959,887,922.64
Cash paid for purchasing of
200,278,429.82 194,379,423.95
merchandise and services
Net increase of client trade and advance
Net increase of savings n central bank
and brother company
Cash paid for original contract claim
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Items Report period Same period of the previous year
Cash paid for interest, processing fee
and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 317,865,103.86 311,802,195.74
Taxes paid 428,844,550.88 431,179,968.95
Other cash paid for business activities 94,687,393.35 98,266,375.72
Sub-total of cash outflow from business
1,041,675,477.91 1,035,627,964.36
activities
Cash flow generated by business
2,194,989,925.35 1,924,259,958.28
operation, net
II.Cash flow generated by investing
Cash received from investment
retrieving
Cash received as investment gains 424,307,452.94 471,047,095.86
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 619,050.00 667,966.00
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received 59,995,667.68 60,770,000.00
Sub-total of cash inflow due to
484,922,170.62 532,485,061.86
investment activities
Cash paid for construction of
fixed assets, intangible assets 429,007,555.79 487,328,041.69
and other long-term assets
Cash paid as investment 799,999,959.30 803,500,000.00
Net increase of loan against pledge 0.00 0.00
Net cash received from subsidiaries and
0.00 0.00
other operational units
Other cash paid for investment
0.00 987,903,684.98
activities
Sub-total of cash outflow due to
1,229,007,515.09 2,278,731,726.67
investment activities
Net cash flow generated by investment -744,085,344.47 -1,746,246,664.81
III.Cash flow generated by financing
Cash received as investment 0.00 1,633,499,989.30
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Items Report period Same period of the previous year
Incl: Cash received as investment from
0.00 0.00
minor shareholders
Cash received as loans 1,828,000,000.00 2,498,000,000.00
Cash received from bond placing
Other financing –related ash received 10,277,777.78 5,173.81
Sub-total of cash inflow from financing
1,838,277,777.78 4,131,505,163.11
activities
Cash to repay debts 2,225,880,000.00 2,330,180,000.00
Cash paid as dividend, profit, or
1,304,986,387.00 570,437,516.48
interests
Incl: Dividend and profit paid by
309,648,023.87 10,266,231.67
subsidiaries to minor shareholders
Other cash paid for financing activities 0.00 4,727,368.84
Sub-total of cash outflow due to
3,530,866,387.00 2,905,344,885.32
financing activities
Net cash flow generated by financing -1,692,588,609.22 1,226,160,277.79
IV. Influence of exchange rate
1,447,084.51 -523,203.86
alternation on cash and cash equivalents
V.Net increase of cash and cash
-240,236,943.83 1,403,650,367.40
equivalents
Add: balance of cash and cash
2,603,279,644.25 1,199,629,276.85
equivalents at the beginning of term
VI ..Balance of cash and cash
2,363,042,700.42 2,603,279,644.25
equivalents at the end of term
Legal Representative:Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
6. Cash Flow Statement of the Parent Company
In RMB
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Items Amount in this period Amount in last period
Cash received from sales of goods or
558,221,855.21 10,046,335.82
rending of services
Tax returned 0.00 0.00
Other cash received from business
256,279,744.56 602,105,966.56
operation
Sub-total of cash inflow 814,501,599.77 612,152,302.38
Cash paid for purchasing of
40,959,738.85 0.00
merchandise and services
Cash paid to staffs or paid for staffs 88,199,907.15 42,170,653.37
Taxes paid 15,211,949.40 4,606,494.69
Other cash paid for business activities 457,568,791.56 90,477,346.95
Sub-total of cash outflow from business
601,940,386.96 137,254,495.01
activities
Cash flow generated by business
212,561,212.81 474,897,807.37
operation, net
II.Cash flow generated by investing
Cash received from investment
retrieving
Cash received as investment gains 1,533,378,326.14 853,725,462.29
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 604,520.00 0.00
long-term assets
Net cash received from disposal of
0.00 0.00
subsidiaries or other operational units
Other investment-related cash received 167,012,137.44 163,995,012.01
Sub-total of cash inflow due to
1,700,994,983.58 1,017,720,474.30
investment activities
Cash paid for construction of
fixed assets, intangible assets 60,356,595.71 524,310.00
and other long-term assets
Cash paid as investment 804,499,959.30 1,303,500,000.00
Net cash received from subsidiaries and
0.00 0.00
other operational units
Other cash paid for investment
20,000,000.00 987,903,684.98
activities
Sub-total of cash outflow due to 884,856,555.01 2,291,927,994.98
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Items Amount in this period Amount in last period
investment activities
Net cash flow generated by investment 816,138,428.57 -1,274,207,520.68
III.Cash flow generated by financing
Cash received as investment 0.00 1,633,499,989.30
Cash received as loans 270,000,000.00 1,500,000,000.00
Cash received from bond placing 0.00 0.00
Other financing –related ash received 732,162,605.79 5,173.81
Sub-total of cash inflow from
1,002,162,605.79 3,133,505,163.11
financing activities
Cash to repay debts 50,200,000.00 1,000,100,000.00
Cash paid as dividend, profit, or
852,788,562.89 355,676,260.33
interests
Other cash paid for financing activities 794,300,000.00 4,727,368.84
Sub-total of cash outflow due to
1,697,288,562.89 1,360,503,629.17
financing activities
Net cash flow generated by financing -695,125,957.10 1,773,001,533.94
IV. Influence of exchange rate
1,447,084.51 -523,203.86
alternation on cash and cash equivalents
V.Net increase of cash and cash
335,020,768.79 973,168,616.77
equivalents
Add: balance of cash and cash
1,795,455,123.88 822,286,507.11
equivalents at the beginning of term
VI ..Balance of cash and cash
2,130,475,892.67 1,795,455,123.88
equivalents at the end of term
Legal Representative:Zheng Renfa
General Manager: Wang Chunhua
Person in charge of accounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Minor
Items Total of owners’
Less: Other Speciali
Common risk shareholders’
Share Capital prefer Capital reserves Shares Comprehensive zed Surplus reserves Attributable profit equity
Sustai provision equity
red Other in stock Income reserve
nable
stock
debt
I.Balance at the
2,090,806,126.00 2,508,408,342.99 402,285,954.24 366,956,549.89 2,920,563,328.27 554,495,287.40 8,843,515,588.79
end of last year
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the
beginning of 2,090,806,126.00 2,508,408,342.99 402,285,954.24 366,956,549.89 0.00 2,920,563,328.27 554,495,287.40 8,843,515,588.79
current year
III.Changed in the
1,661,406.77 -75,022,130.07 177,864,580.14 0.00 629,546,960.22 -123,455,724.40 610,595,092.66
current year
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Minor
Items Total of owners’
Less: Other Speciali
Common risk shareholders’
Share Capital prefer Capital reserves Shares Comprehensive zed Surplus reserves Attributable profit equity
Sustai provision equity
red Other in stock Income reserve
nable
stock
debt
（1）Total
comprehensive -75,022,130.07 1,509,922,398.70 200,301,288.72 1,635,201,557.35
income
（II）Investment
or decreasing of
capital by owners
1．Ordinary Share
s invested by share
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Amount of
shares paid and
accounted as
owners’ equity
4．Other
（III）Profit
177,864,580.14 -880,375,438.48 -323,757,013.12 -1,026,267,871.46
allotment
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Minor
Items Total of owners’
Less: Other Speciali
Common risk shareholders’
Share Capital prefer Capital reserves Shares Comprehensive zed Surplus reserves Attributable profit equity
Sustai provision equity
red Other in stock Income reserve
nable
stock
debt
1.Providing of
177,864,580.14 -177,864,580.14
surplus reserves
2.Providing of
common risk
provisions
3．Allotment to the
owners (or -702,510,858.34 -323,757,013.12 -1,026,267,871.46
shareholders)
4．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Minor
Items Total of owners’
Less: Other Speciali
Common risk shareholders’
Share Capital prefer Capital reserves Shares Comprehensive zed Surplus reserves Attributable profit equity
Sustai provision equity
red Other in stock Income reserve
nable
stock
debt
3．Making up
losses by surplus
reserves.
4. Other
(V). Special
reserves
1. Provided this
year
2．Used this term
（VI）Other 1,661,406.77 1,661,406.77
IV. Balance at the
2,090,806,126.00 2,510,069,749.76 327,263,824.17 544,821,130.03 3,550,110,288.49 431,039,563.00 9,454,110,681.45
end of this term
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Amount in last year
In RMB
Amount in last year
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Commo Minor
Items Less: Other Speciali Total of owners’
n risk shareholders’
Share Capital Capital reserves Shares Comprehensive zed Surplus reserves Attributable profit equity
prefer equity
Sustai provisio
red Other in stock Income reserve
nable n
stock
debt
I.Balance at the
1,257,117,748.00 1,643,484,871.70 479,920,085.76 295,642,270.96 2,179,239,324.01 1,261,282,480.94 7,116,686,781.37
end of last year
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the
beginning of 1,257,117,748.00 1,643,484,871.70 479,920,085.76 295,642,270.96 2,179,239,324.01 1,261,282,480.94 7,116,686,781.37
current year
III.Changed in the
833,688,378.00 864,923,471.29 -77,634,131.52 71,314,278.93 741,324,004.26 -706,787,193.54 1,726,828,807.42
current year
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Amount in last year
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Commo Minor
Items Less: Other Speciali Total of owners’
n risk shareholders’
Share Capital Capital reserves Shares Comprehensive zed Surplus reserves Attributable profit equity
prefer equity
Sustai provisio
red Other in stock Income reserve
nable n
stock
debt
（1）Total
comprehensive -77,634,131.52 1,001,205,945.39 171,151,762.05 1,094,723,575.92
income
（II）Investment
or decreasing of 833,688,378.00 1,824,865,776.82 2,658,554,154.82
capital by owners
1．Ordinary Share
s invested by share 833,688,378.00 1,824,865,776.82 2,658,554,154.82
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Allotment to the
owners (or
shareholders)
4．Other
(IV) Internal
transferring of 71,314,278.93 -259,881,941.13 -10,266,231.67 -198,833,893.87
owners’ equity
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Amount in last year
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Commo Minor
Items Less: Other Speciali Total of owners’
n risk shareholders’
Share Capital Capital reserves Shares Comprehensive zed Surplus reserves Attributable profit equity
prefer equity
Sustai provisio
red Other in stock Income reserve
nable n
stock
debt
1. Capitalizing of
capital reserves (or 71,314,278.93 -71,314,278.93
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus -188,567,662.20 -10,266,231.67 -198,833,893.87
reserves.
4. Other
(VI )Special
reserves
1. Provided this
year
2．Used this term
（VII）Other
IV. Balance at the
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Amount in last year
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Commo Minor
Items Less: Other Speciali Total of owners’
n risk shareholders’
Share Capital Capital reserves Shares Comprehensive zed Surplus reserves Attributable profit equity
prefer equity
Sustai provisio
red Other in stock Income reserve
nable n
stock
debt
end of this term
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other -959,942,305.53 -867,672,723.92 -1,827,615,029.45
IV. Balance at the
2,090,806,126.00 2,508,408,342.99 402,285,954.24 366,956,549.89 2,920,563,328.27 554,495,287.40 8,843,515,588.79
end of this term
Legal Representative:Zheng Renfa General Manager: Wang Chunhua Person in charge of accounting：Fang Zhi Accounting Dept Leader: Zhou Fang
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
In RMB
Amount in this period
Other Equity instrument
Less: Other
Items Specialize Total of owners’
Share Capital preferre Sustain Capital reserves Shares in Comprehensive Surplus reserves Attributable profit
Other d reserve equity
d stock able stock Income
debt
I.Balance at the
2,090,806,126.00 3,359,791,693.12 402,285,954.24 351,112,266.24 1,764,609,695.85 7,968,605,735.45
end of last year
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the
beginning of 2,090,806,126.00 3,359,791,693.12 402,285,954.24 351,112,266.24 1,764,609,695.85 7,968,605,735.45
current year
III.Changed in the
-437,833,711.74 -75,022,130.07 177,864,580.14 898,270,362.93 563,279,101.26
current year
（I）Total
comprehensive -75,022,130.07 1,778,645,801.41 1,703,623,671.34
income
(II) Investment or
-437,833,711.74 -437,833,711.74
decreasing of
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Amount in this period
Other Equity instrument
Less: Other
Items Specialize Total of owners’
Share Capital preferre Sustain Capital reserves Shares in Comprehensive Surplus reserves Attributable profit
Other d reserve equity
d stock able stock Income
debt
capital by owners
1．Ordinary Share
s invested by share
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3.Amount of
shares paid and
accounted as
owners’ equity
4．Other -437,833,711.74 -437,833,711.74
（III）Profit
177,864,580.14 -880,375,438.48 -702,510,858.34
allotment
1.Providing of
177,864,580.14 -177,864,580.14
surplus reserves
2．Allotment to the
owners (or -702,510,858.34 -702,510,858.34
shareholders)
3．Other
(IV)Internal
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Amount in this period
Other Equity instrument
Less: Other
Items Specialize Total of owners’
Share Capital preferre Sustain Capital reserves Shares in Comprehensive Surplus reserves Attributable profit
Other d reserve equity
d stock able stock Income
debt
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other
IV. Balance at the
2,090,806,126.00 2,921,957,981.38 327,263,824.17 528,976,846.38 2,662,880,058.78 8,531,884,836.71
end of this term
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Amount in last year
In RMB
Amount in last year
Other Equity instrument
Less: Other
Items Specialize Total of owners’
Share Capital preferre Sustain Capital reserves Shares in Comprehensive Surplus reserves Attributable profit
Other d reserve equity
d stock able stock Income
debt
I.Balance at the
1,257,117,748.00 1,534,920,742.49 479,920,085.76 279,797,987.31 1,311,348,847.67 4,863,105,411.23
end of last year
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the
beginning of 1,257,117,748.00 1,534,920,742.49 479,920,085.76 279,797,987.31 1,311,348,847.67 4,863,105,411.23
current year
III.Changed in the
833,688,378.00 1,824,870,950.63 -77,634,131.52 71,314,278.93 453,260,848.18 3,105,500,324.22
current year
（I）Total
comprehensive -77,634,131.52 713,142,789.31 635,508,657.79
income
(II) Investment or
833,688,378.00 1,824,865,776.82 2,658,554,154.82
decreasing of
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Amount in last year
Other Equity instrument
Less: Other
Items Specialize Total of owners’
Share Capital preferre Sustain Capital reserves Shares in Comprehensive Surplus reserves Attributable profit
Other d reserve equity
d stock able stock Income
debt
capital by owners
1．Ordinary Share
s invested by share 833,688,378.00 1,824,865,776.82 2,658,554,154.82
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3.Amount of
shares paid and
accounted as
owners’ equity
4．Other
（III）Profit
71,314,278.93 -259,881,941.13 -188,567,662.20
allotment
1.Providing of
71,314,278.93 -71,314,278.93
surplus reserves
2．Allotment to the
owners (or -188,567,662.20 -188,567,662.20
shareholders)
3．Other
(IV)Internal
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Amount in last year
Other Equity instrument
Less: Other
Items Specialize Total of owners’
Share Capital preferre Sustain Capital reserves Shares in Comprehensive Surplus reserves Attributable profit
Other d reserve equity
d stock able stock Income
debt
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other 5,173.81 5,173.81
IV. Balance at the
2,090,806,126.00 3,359,791,693.12 402,285,954.24 351,112,266.24 1,764,609,695.85 7,968,605,735.45
end of this term
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Legal Representative:Zheng Renfa General Manager: Wang Chunhua Person in charge of accounting：Fang Zhi Accounting Dept Leader: Zhou Fang
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
III.Company Profile
(1)History
The Company was established in February 1993, which was originally named as Guangdong
Fokai Expressway Co., Ltd. On June 30, 1993, it was renamed as Guangdong Provincial
Expressway Development Co., Ltd. after reorganization pursuant to the approval of the Office of
Joint Examination Group of Experimental Units of Share Holding System with YLSB (1993)No.
68 document. The share capital structure after reorganization is as follows:
Composition of state-owned shares: The appraised net value of state-owned assets of Guangdong
Jiujiang Bridge Co. and Guangfo Expressway Co., Ltd. as of January 31, 1993 confirmed by
Guangdong State-owned Asset Management Dept., i.e.,RMB 418.2136 million, was converted
into 155.025 million shares. Guangdong Expressway Co. invested cash of RMB 115 million to
subscribe for 35.9375 million shares. Other legal persons invested cash of RMB 286.992 million
to subscribe for 89.685 million shares. Staff of the Company invested RMB 87.008 million to
subscribe for 27.19 million shares. The total is RMB 307.8375 million shares.
2． Pursuant to the approval of Guangdong Economic System Reform Committee and Guangdong
Securities Regulatory Commission with YTG (1996) No. 67 document, part of the shareholders of
non-state-owned legal person shares transferred 20 million non-state-owned legal person shares to
Malaysia Yibao Engineering Co., Ltd. in June 1996.
3. Pursuant to the approval of Securities Commission under the State Council with WF (1996) No.
24 approval document and that of Guangdong Economic System Reform Committee with YTG
(1996) No. 68 document, the Company issued 135 million domestically listed foreign investment
shares (B shares) to overseas investors at the price of HKD 3.54 (equivalent to RMB 3.8) with the
par value of each share being RMB 1 during June to July 1996.
4. Pursuant to the reply of the Ministry of Foreign Trade and Economic Cooperation of the People’
s Republic of China with (1996) WJMZYHZ No. 606 document, the Company was approved to
be a foreign-invested joint stock company limited.
5．The Company distributed dividends and capitalized capital common reserve for the year 1996
in the following manner: The Company paid 1.7 bonus shares f or each 10 shares and capitalized
capital common reserve on 3.3-for-10 basis.
6. Pursuant to the approval of China Securities Regulatory Committee (CSRC) with ZJFZ (1997)
No. 486 and No. 487 document, the Company issued 100 million public shares (A shares) at the
price of RMB 5.41 in term of “payable in full on application, pro-rate placing and subject to
refund” with the par value of each share being RMB 1 in January 1998.
7．In accordance with the Resolutions of the 1999 Shareholders’ General Meeting of the Company
and pursuant to the approval of Guangzhou Securities Regulatory Office under CSRC with
GZZJH (2000) No. 99 and that of CSRC with ZJGSZ (2000) No. 98, the Company offered 3
Rights for every 10 shares of 764.256249 million shares at the price of RMB 11 per
Right.73,822,250 ordinary shares were actually placed to all .
8. Pursuant to the reply of the General Office of the People’ s Government of Guangdong
Province with YBH (2000) No. 574 document, the state-owned shares were transferred to
Guangdong Communication Group Co., Ltd. (Group Co.) for holding and management without
compensation.
9.Pursuant to the approval of Shenzhen Stock Exchange, 53.0205 million staff shares of the
Company (132,722 shares held by directors, supervisors and senior executives are temporarily
frozen) were listed on February 5, 2001.As of Ju 呢 30,2017, the quantity of the shares subject to
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
sale restriction held by senior executives is 92,404.
10.In accordance with the resolutions of 2000 annual shareholders’ general meeting, the Company
capitalized capital common reserve into 419,039,249 shares on 5-for-10 basis with the total share
capital as of the end of 2000, i.e., 838,078,499 shares as base. The date of stock right registration
was May 21, 2001. The ex-right date was May 22, 2001.
11．On March 8, 2004,As approved by China Securities Regulatory Commission by document
Zheng-Jian-Gong-Si-Zi [2003]No.3, the 45,000,000 non-negotiable foreign shares were placed in
Shenzhen Stock
12. On December 21, 2005, the Company's plan for share holding structure reform was voted
through at the shareholders' meeting concerning A shares. On January 26 2006, The Ministry of
Commerce of PRC issued “The approval on share converting of Guangdong Provincial
Expressway Development Co., Ltd.” to approve the share equity relocation and transformation.
On October 9 2006, according to the “Circular about implementing of share equity relocation and
relative trading” issued by Shenzhen Stock Exchange, the abbreviation ID of the Company’s A
shares was restored from “G-Expressway” “Expressway A”.
13. Upon the approval document of CSRC No.230-2016 Zheng Jian Xu ke-Approval of the
Share-Issuing to Parties such as Guangdong Provincial Expressway Co., Ltd to Purchase Assets
and Raise Matching Funds by Guangdong Provincial Expressway Development Co., Ltd, in June
2016 the company issued 33,355,263 shares and paid RMB 803.50 million to Guangdong
Provincial Expressway Co., Ltd for purchasing the 25% stake of Guangdong Provincial Fokai
Expressway Co., Ltd held by Guangdong Provincial Expressway Co., Ltd; and issued 466,325,020
shares to Guangdong Provincial Highway Construction Co., Ltd for purchasing the 100% stake of
Guangzhou Guangzhu Traffic Investment Management Co., Ltd held by Guangdong Provincial
Highway Construction Co., Ltd. On June 21, 2016, the company directionally issued 334,008,095
A-shares to Yadong Fuxing Yalian Investment Co.,Ltd, Tibet Yinyue Investment Management
Co.,Ltd and GF Securities Co.,Ltd. The issuance of shares have been registered on July 7, 2016,
the new shares will be listed on July 8, 2016.
(2)Organization structure and the actual controller of the Company
As of December 31, 2017，Registration capital:RMB2,090,806,126，Legal representative：Zheng
Renfa,Registration place:No.85, Baiyun Road, Guangzhou, Headquarters Office: 45-46/F, Litong
Plaza, No.32, Zhujiang East Road, Zhujiang New City, Tihe Disrtict , Guangzhou，The company
has set up: Investment Development Dept, Security Affairs Department, Management Department,
Financial Management Department, Base construction Department, Audit and Supervise
Department, Affairs Department, Personnel Department , Party Work Department, Law affairs
Department , Project Office and Labour union etc.
Guangdong Communication Group Co., Ltd. is the largest shareholder of the Company. legal
representative: Deng Xiaohua. Date of establishment: June 23, 2000. As of December 31,
2017,Registered capital: RMB 26.8 billion. It is a solely state-owned limited company. Business
scope：equity management, organization of asset reorganization and optimized allocation, raising
funds by means including mortgage, transfer of property rights and joint stock system
transformation, project investment, operation and management, traffic infrastructure construction,
highway and railway project operation and relevant industries, technological development,
application, consultation and services, highway and railway passenger and cargo transport, ship
industry, relevant overseas businesses; The value-added communication business.
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
（3）The company’s main business and share ,Holding company
The company operated the construction of the highway construction, grading roads, bridges;Mana
gement fees and maintenance of roads, bridges, and car rescue, maintenance, cleaning, concurrentl
y with the company's business supporting motor transport, warehousing operations.
The Company is mainly engaged in tolling and maintenance of Guangfo Expressway, Fokai Expre
ssway, investment in technological industries and provision of relevant consultation while investin
g in Shenzhen Huiyan Expressway Co., Ltd., Guangzhou Guanghui Expressway Co., Ltd.,Jingzhu
Expressway Guangzhu Co., Ltd.,Guangdong Jiangzhong Expressway Co., Ltd., Zhaoqing Yuezha
o Expressway Co., Ltd.,Ganzhou Kangda Expressway , Ganzhou Gankang Expressway Co., Ltd.,
Guangdong Yueke Technology Micro Loan Co., Ltd.,Guangdong Guangle Expressway Co.,Ltd.
and Guoyuan Securities Co., Ltd.
（4）Scope of consolidated financial statements
The company's 2017 annual consolidated subsidiaries of total 6 companies, one new business
combination was added to the scope of consolidate financial statement in reason of being under
the same control. Refer to financial statements XI(8),Change of consolidation scope and, financial
statements XI(9), Equity in other entities for more details.
（5）Approval of the financial statements reported
The financial statements have been authorized for issuance by the Board of Directors of the Group
on March 27,2018.
IV. Basis for the preparation of financial statements
1.Preparation basis
The company prepares the financial statements on the basis of a continuous operation, the actual
transactions, “Accounting Standards for Enterprises – Basic Standards”, other accounting
standards & related regulations. Furthermore, all the materials of financial statements of the
company meet the relevant disclosure requirements of financial statements and notes on the
“Editing and Reporting Rules Regarding Information Disclosure for Companies Publicly Issuing
Securities No. 15 – General Regulations for Financial Reporting (revised in 2014) by China
Securities Regulatory Commission.
2.Continuation
There will be no such events or situations in the 12 months from the end of the reporting period
that will cause material doubts as to the continuation capability of the Company.
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
V. Significant Accounting Policies and Accounting Estimates
Whether the Company needs to comply with the disclosure requirements for specific industries
No
Specific accounting policies and accounting estimates are indicated as follows:
Nil
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company comply with the requirements of corporate
accounting standards. They truly and completely reflect the financial situations, operating results,
equity changes and cash flow, and other relevant information of the company.
2.Fiscal Year
The Company adopts the Gregorian calendar year commencing on January 1 and ending on
December 31 as the fiscal year.
3.Operating cycle
An operating cycle for the Company is 12 months, which is also the classification criteria for the
liquidity of its assets and liabilities.
4.Standard currency for bookkeeping
The Company takes RMB as the standard currency for bookkeeping.
5.Accountings for Business Combinations under the Same Control & Business Combinations not
under the Same Control
1.Business Combinations under the Same Control
The assets and liabilities acquired by the company in the business combination shall be measured
as per the obtained book value of owner’s equity of the combined party in the consolidated
financial statements. As for the balance between the carrying amount of the net assets obtained by
the combining party & the carrying amount of the consideration paid by it (or the total par value of
the shares issued), the additional paid-in capital shall be adjusted. If the additional paid-in capital
is not sufficient to be offset, the retained earnings shall be adjusted.
The direct costs for the business combination of the company, including the expenses for audit,
assessment and legal services, shall be recorded into the profits & losses at the current period.
The handling fees, commissions & other expenses for the issuance of equity securities for the
business combination shall be credited against the surplus of equity securities; if the surplus is not
sufficient, the retained earnings shall be offset.
Where the accounting policies adopted by the combined parties are different from those adopted
by the company, the company shall adjust them on the combining date according to the accounting
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
policy it adopts, and shall, pursuant to the Accounting Standards for Enterprises, recognize them
on the basis of such adjustments.
2. Business Combinations not under the Same Control
The assets paid as the consideration for the business combination & the liabilities assumed on the
acquisition date shall be measured in accordance with the fair value. The difference between the
fair value & its carrying amount shall be recorded into the profits & losses at the current period.
The company will distribute the combination costs on the acquisition date.
The company shall recognize the positive balance between the combination costs & the fair value
of the identifiable net assets it obtains from the acquire as Goodwill while it shall record the
negative balance between the combination costs & the fair value of the identifiable net assets it
obtains from the acquire into the profits & losses of the current period.
As for the assets other than intangible assets acquired from the acquire in a business combination
(not limited to the assets which have been recognized by the acquire), if the economic benefits
brought by them are likely to flow into the enterprise and their fair values can be measured
reliably, they shall be separately recognized and measured in light of their fair values. As for any
intangible asset acquired in a combination, if its fair value can be measured reliably, it shall be
separately recognized as an intangible asset and shall measured in light of its fair value. As for the
liabilities other than contingent liabilities acquired from the acquire, if the performances of the
relevant obligations are likely to result in any out-flow of economic benefits from the enterprise,
and their fair values can be measured reliably, they shall be separately recognized and measured in
light of their fair values. As for the contingent liabilities of the acquire obtained in a combination,
if their fair values can be measured reliably, they shall be separately recognized as liabilities and
shall be measured in light of their fair values.
6.Methods for Preparing the Consolidated Financial Statements
The scope of the consolidated financial statements will be recognized on the basis of controlling.
All the subsidiaries will be included into the consolidated financial statements.
The accounting policies & accounting periods adopted by all the subsidiaries that have been
included into the scope of the consolidated financial statements should be consistent with those
adopted by the company. If the accounting policies & accounting periods adopted by the
subsidiaries are different from those adopted by the company, the company shall make necessary
adjustments according to the accounting policies & accounting periods it adopts when preparing
the consolidated financial statements.
After adjusting the long-term equity investments on its subsidiaries according to the equity
method, the company shall prepare the consolidated financial statements based on the financial
statements of the company & its subsidiaries, and other related documents.
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
The influences of the internal transactions between the company & its subsidiaries, and its
subsidiaries themselves on the consolidated balance sheet, consolidated profit statement,
consolidated cash flow statement & consolidated statement of changes in owner’s equity will be
counteracted at the preparation of the consolidated financial statements.
The portion of a subsidiary’s equity that is not attributable to the parent is treated as minority
shareholders’ interest and presented as “minority interest” in the consolidated balance sheet within
owners’ equity. The portion of net profits or losses of subsidiaries for the period attributable to
minority interest is presented in the consolidated income statement below the “net profit” line item
as “minority interest”. In the consolidated financial statements, when the amount of loss for the
period attributable to the minority shareholders of a subsidiary exceeds the minority shareholders’
portion of the opening balance of owners’ equity of the subsidiary, the excess amount should be
still allocated against minority interest.
In the report period, If the subsidiary is added through the business combination under the same
control, the beginning balance of the consolidated balance sheet shall be adjusted. The incomes,
expenses & profits of the subsidiary incurred from the beginning of the current period to the end
of the reporting period shall be included into the consolidated profit statement. The cash flow from
the beginning of the current period to the end of the reporting period shall be included into the
consolidated cash flow statement.
For purchase of minority interests held by the minority shareholders of a subsidiary, when
preparing the consolidated financial statements, the difference between the long-term equity
investment newly gained by buying minority interests and the portion of net assets consistently
calculated from the acquisition date (or the consolidation date) pursuant to newly added
shareholding percentage entitled by the subsidiary should be adjusted to the owners’ equity (the
capital reserve). If the capital reserve is not sufficient to absorb the difference, any excess is
adjusted against retained earnings.
In the report period, If the company disposes its subsidiary, the incomes, expenses & profits
incurred from the beginning of the subsidiary to the disposal date shall be included into the
consolidated profit statement. The cash flow from the beginning of the subsidiary to the disposal
date shall be included into the consolidated cash flow statement.
7.Joint venture arrangements classification and Co-operation accounting treatment
⑴A joint arrangement refers to an arrangement jointly controlled by two participants or above.，
the joint venture arrangements include co-operation and joint ventures.
(2)When the joint venture company for joint operations, confirm the following items and share co
mmon business interests related to:
（1）Confirm individual assets and common assets held based on shareholdings;
（2）Confirm individual liabilities and shared liabilities held based on shareholdings;
（3）Confirm the income from the sales revenue of co-operate business output
（4）Confirm the income from the sales of the co-operate business output based on shareholdings;
（5）Confirm the individual expenditure and co-operate business cost based on shareholdings.
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
⑶When a company is a joint ventures, joint venture investment will be recognized as long-term e
quity investments and long-term equity investments are accounted for in accordance with the meth
od of the Notes to Financial Statements.
8.Recognition Standard of Cash & Cash Equivalents
The company recognizes its cash in vault & the deposits that are ready for payment at any time as
cash when preparing the cash flow statement.which are featured with short term (expire within 3
months since purchased), high liquidity, easy to convert to know cash, low in risk of value change,
could be recognized as cash equivalents. Equity investment are not recognized as cash
equivalents.
9.Foreign Currency Transaction
（1）Foreign Currency Transaction
For the company with non-functional currency business, the middle rate of the market exchange
rate published by People’s Bank of China on the date of occurrence of business are recorded as the
functional currency, and the balances of foreign currency shall be adjusted by the end of the
month according to the middle rate of the market exchange rate published by People’s Bank of
China at the end of period. The differences between the recording currency amount converted by
the exchange rate at the end of period and the carrying currency amount are as “Finance Costs –
Exchange Gains and Losses” and recorded into the current profits or losses. The exchange gains
and losses related to borrowings on the fixed assets shall be made treatment according to the
principles of borrowing costs capitalization.
（2）Conversion of Foreign Financial statement
If overseas subsidiaries, cooperative enterprises, joint ventures, branches of the company adopt the
different functional recording currency and record the overseas business of the company into the
financial statements through the consolidated statements and the accounting by the equity method,
the overseas financial statements shall be translated as the recording functional currency. Before
the translation, the company shall adjust the accounting period and policy of overseas business in
order to make the consistent adjustment, and translate the overseas financial statements according
to the financial statements of the preparation of corresponding currency after the accounting
policy and period adjusted and as per the following methods:
① For the assets and liabilities in the balance sheet, the shot exchange rate on the balance sheet
date is adopted as the translation exchange rate. For the owner’s equity, the shot exchange rate
on the transaction date is adopted as the translation exchange rate, with the exception of
“undistributed profits”.
② The incomes and expenses in the income statement shall be translated at the spot exchange
rate or the approximate exchange rate on the transaction date.
③ The translation gap of financial statement of foreign currency shall be listed under the owner’s
equity in the consolidated balance sheet in the preparation of the consolidated financial
statements.
Note: explain the follow items as the determination of conversion rate while foreign currency
trade occurred, the conversion method for foreign currency monetary items in balance sheet date,
the treatment for exchange gains or losses as well we the accounting treatment for foreign
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
currency statement translation.
10.Financial tools
1. Categories of financial Tools
The Company divides the financial assets into four categories: financial assets measured at
fair value and their variations are recognized as current gain/loss, including trade financial assets
or financial liabilities and recognized directly as financial assets measured at fair value and their
variations are recognized as current gain/loss; Investment hold till expiration; loans and account
receivable; saleable financial assets .The company divides the financial liabilities into two
categories: financial liabilities measured at fair value and their variations are recognized as current
gain/loss; other financial liabilities.
2. Recognition and measurement of financial tools
(1) Financial assets and liabilities measured at fair value and their variations are recognized as
current gain/loss
The fair value (after deducting of announced but not distributed cash dividend or due but not
obtained bond interests) is recognized as initial amount when obtained.
Interests or cash dividends during the period of holding are recognized as investment gains. The
fair value will be adjusted and accounted as current gain/loss.
When disposed, the differences between fair value and initial amount are recognized as investment
gains, and thus adjust the gain/loss of fair value.
(2) Investment hold till expiration
The fair value (after deducting of due but not obtained bond interests) plus the related trade
expenses is recognized as initial amount when obtained.
Interest gains will be calculated at amortizing of costs and actual interest rate (the face rate is
adopted when the difference between the actual rate and face rate is minor) during the period of
holding, and accounted as investment gains. Actual rate is recognized when obtained, and is not
changed in the predictable holding period or applicable shorter period.
When disposed, the difference between the obtained price and book value is accounted as
investment gains.
If the company sells or reclassifies large-amount due investments before the expired date (large
amount refers to comparing with the amount before the selling or reclassifying the investments),
the company will reclassify the rest of the investments as financial assets for sale, and in the
current accounting period or within two complete accounting years, no financial assets will be
classified as holding due assets, except for the following situations: the sale date or reclassification
date is close to the expired date of the investment (such as three months before the expired), and
the change of interest rate has no significant influence on the fair value of the investment; after all
the initial principal is mostly recovered according to periodic payments or repay in advance
regulated in the contract, the rest part will be sold or reclassified; the sale and reclassification is
caused by the independent events which are uncontrollable and unexpected and will not happen
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
any more.
(3) Account receivable
The receivable debts of selling goods or providing services, and the credits of other company hold
by the company not including the debt which has price in active market, including accounts
receivable, notes receivable, prepaid accounts, other receivables, long-term receivables, etc. The
contract or agreement price charging from purchaser should be taken as the initial confirmation
amount; if it has the nature of financing, it should be confirmed according its current value.
When retrieved or disposed of, the difference between the actual received amount and the book
value is accounted as current gain/loss.
(4) Saleable financial assets
The fair value (after deducting of announced but not distributed cash dividend or due but not
obtained bond interests) plus the related trade expenses is recognized as initial amount when
obtained.
Interest or cash dividend occurred during the period of holding is recognized as investment gains.
Change of fair value is accounted as capital reserves (other capital reserves) at the end of term.
When disposed, the difference between the obtained price and book value is accounted as
investment gains. Meanwhile, the corresponding part of accumulated change of fair value
accounted as owners’ equity is transferred into investment gain/loss.
(5) Other financial liabilities
Other financial liabilities are recognized initially at the sum of fair value and related trade
expenses. Successive measurement will be on the basis of amortized costs.
3. Recognition and measurement basis of financial asset transposition
When financial asset transposition occurred, the recognition of this particular financial asset is
terminated if almost all risks and rewards attached to the asset have been transferred to the
acceptor. If retain all the risks and rewards of ownership of financial assets, the financial assets
can be confirmed.
When determine whether the transfer of financial assets meet the conditions of confirmation of the
above financial assets, the principle of substance being more important than form should be
adopted. The transfer of financial assets can be divided into overall transfer and part transfer of
financial assets. If the transfer of financial assets meet the conditions of terminating confirmation,
the following the difference of the two amounts will be included in the current profit and loss:
(1) Book value of the financial asset to be transposed;
(2) The sum of price received due to the transposition, and the accumulation of change in fair
value originally accounted as owners’ equity (when the asset to be transposed is saleable financial
asset).
If part transfer of financial assets meet the conditions of terminating confirmation, the book value
of the transferred financial assts, the difference between the confirmed part and the unconfirmed
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
part (in this case, the service assets retained should be deemed as the part of unconfirmed financial
assets), should be amortized in accordance with their relative fair value, and the difference
between the following two amount should be included current profit and loss:
① Book value of the confirmed part;
②All fair values of financial assets and financial liabilities are recognized with reference to the
price in the active market.
If the transfer of financial assets does not meet the conditions of terminating confirmation, the
financial assets should be confirmed again, the prices received will recognized as financial
liabilities.
4.The conditions to stopping the financial liabilities
The obligation of financial liabilities are already cancelled which should be stopped confirming
the financial liability or the part of it. Our company could stop confirming the currently financial
liability and begin to confirm the newly financial liability if the loaner made an agreement that
they would assume the new way of financial liability which replace the current one, and make sure
the newly financial liability is totally different from the old one in contract with our company.
Stop admitting the financial liability or a part of it, and at mean time we could admit the newly
financial liability which is in new insertions of contract as the newly financial liability if the
current financial liability has been revised.
Stop admitting the balance of value of financial liability and consideration (Including the roll-out
of non-cash assets or financial liabilities) which could be consider as current profits and losses.
Stop and continue admitting a part of value, and distribute the value of financial liability, if our
company repurchased the part of financial liability. And the balance of value of which distributed
to the part of stopping admitting and paid (Including the roll-out of non-cash assets or financial
liabilities) which could be consider as current profits and losses.
5.Recognition basis of financial assets and financial liabilities
All fair values of financial assets and financial liabilities are recognized with reference to the price
in the active market（Using valuation technique, etc）.
6. Impairment provision for financial assets
①Impairment provision for financial assets for sale:
If the fair value of financial assets for sale greatly drops at the end of the period, or after
considering all the relevant factors and expecting decrease trend is non-temporary, the impairment
should be confirmed, and the accumulative loss formed by the decrease of fair value of owner’s
equity originally included should be transferred out altogether and confirmed as impairment loss.
②Holding the impairment provision of expired investments:
The measurement of holding the impairment provision of expired investment will be according to
the method of the measurement of impairment provision for receivables.
11.Accounts Receivable
（1）Accounts receivable with material specific amount and specific provisioned bad debt
preparation.
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
The accounts receivable whose single amount is over RMB 1
Judgment criteria or amount standard of material specific amount million & accounts for over 10% of the accounts receivable
or amount criterial： amount.
Conduct the devalue test separately. Set up the bad debt reserve
Provision method with material specific amount and provision of according to the shortfall of the present value of expected future
specific bad debt preparation： cash flows against its carrying amount and record it into the
profits & losses at the current period.
(2)The accounts receivable of bad debt provisions made by credit risk Group
The basis for determining the combination of Credit risk：The accounts receivable whose single amount is over
RMB 1 million & accounts for over 10% of the accounts receivable amount. Conduct the devalue test separately.
Set up the bad debt reserve according to the shortfall of the present value of expected future cash flows against its
carrying amount and record it into the profits & losses at the current period.
In the Groups, adopting aging analysis method to withdraw bad debt provision
√ Applicable □ Not applicable
Aging Rate for receivables(%) Rate for other receivables(%)
Within 1 year（Included 1 year） 0.00% 0.00%
1－2 years 10.00% 10.00%
2－3 years 30.00% 30.00%
Over 3 years
3－4 years 50.00% 50.00%
4－5 years 90.00% 90.00%
Over 5 years 100.00% 100.00%
Accounts on percentage basis in group：
□ applicable √not applicable
Accounts on other basis in group：
√ Applicable □ Not applicable
Separately carry out the impairment test, prepare the bad debt according to the expected future cash flow
present value below the balance of its book value, and take account of the current profit and loss.
(3)Account receivable with non-material specific amount but specific bad debt preparation
The accounts receivable under 5 years of age which are not
Reason of individually withdrawing bad debt provision
significant without any business connections any more.
Witharawal method for boad debt provision Conduct the devalue test separately. Set up the bad debt
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
reserve according to the shortfall of the present value of expected
future cash flows against its carrying amount and record it into
the profits & losses at the current period.
12.Inventory
Whether the Company needs to comply with the disclosure requirements for specific industrie
No
Whether the company is required to comply with the \"Shenzhen Stock Exchange Industry
Information Disclosure Guidelines No. 1 - listed companies engaged in seed industry, planting
business\" disclosure requirements
Note: (1) Disclosure of major accounting policies and accounting estimates should be combined
with the Company's specific business, which is divided into disclosure inventory system of major
products and the specific inventory method;
(2) Disclosure of major accounting policies and accounting estimates should be combined with the
Company's specific business, which is divided into disclosure inventory cost carry-forward system
of major products and the specific carry-forward method.
(3) Disclosure of major accounting policies and accounting estimates should be combined with the
Company's specific business that is the basis for determining the net realizable value of
inventories by disclosure of major products.
1.Investories class: The company’s stocks can be classified as: raw materials, inventory goods,
low-value consumables & other materials, etc.
2. Valuation method of inventory issued :The company calculates the prices of its inventories
according to the weighted averages method or the first-in first-out method.
3. Recognition Basis of Inventories’ Net Realizable Values and Counting & Drawing Method of
Obsolete Inventory Reserves:After taking stock at the end of the period,
4. Inventory System:Adopts the Perpetual Inventory System
Note: the types of inventories, the method of pricing inventories issued, the basis for determining
the net realizable value of different categories of inventories, the inventory system for inventories
and the amortization method for low value consumables and packaging shall be explained.
13. Divided as assets held for sale
In the presence of the following conditions are satisfied when non-current assets or a part of the co
mpany is classified as held for sale:
(1) The components should be immediately sold under the current condition only according to the
usual terms of the parts sold.
(2) The enterprise has made resolution for the disposal of the components, the approval of
shareholders’ meeting or relevant authority agency if the shareholder’s approval is requested by
the rules.
(3) The enterprise has signed the irrevocable transfer agreement with the transferee.
(4) The transfer shall be completed within one year.
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
For the non-current assets held for sale (excluding the financial assets and the deferred income tax
assets), the less amount after the book value and fair value respectively minus the disposal costs
shall be presented as Divided as assets held for sale assets. If the amount of the fair value minus
the disposal costs is less than that of the original book value, the assets impairment loss shall be
recognized.
Note: recognition criteria for holding assets for sale shall be explained.
14. Long-term equity investment
(1) The Classification of Long-term Equity Investments
The long-term equity investments of the company should include the investments in the
subsidiaries and the investments in cooperative enterprises and joint ventures.
(2) The Recognition of Investment Cost
① For the business combination under common control and the combining party paying in cash,
transferring
non-monetary assets, bearing debts or issuing the equity securities as the consideration, the initial
investment cost shall be recognized according to the shares of the book value in the consolidated
financial statement of the ultimate controlling party that acquired by the combined party on the
combination date. The capital reserves shall be adjusted for the difference between the initial
investment cost of long-term equity investment and the book value of the paid cash, the
transferred non-monetary assets and the borne debts. The retained earnings shall be adjusted if the
capital reserves are insufficient to offset.
For the long-term equity investment after the business combination under common control
realized step-by-step through multiple transactions, the shares of the book value of the owner’s
equity of the combined party shall be as the initial investment cost in the individual financial
statements and the consolidated financial statements as per the shareholding proportion. The
capital reserves shall be adjusted for the balance between the sums of the book value of the equity
investment of the combined party held on the combination date and the new investment cost
increased on the combination date minus the initial investment cost of long-term equity
investment. The retained earnings shall be adjusted if the capital reserves are insufficient to offset.
②For the business combination under non-common control, the initial investment cost shall be
recognized according to the fair value of the merger consideration paid on the purchase date. For
the long-term equity investment after the business combination under non-common control
realized step-by-step through multiple transactions, the relevant accounting treatment should be
respectively conducted for the individual financial statement and the consolidated financial
statements: 1) In the individual financial statements, the sum of the book value of equity
investment from the purchased party held before the purchase date and the new investment cost at
the purchase date shall be as the initial investment cost of the investment. Other comprehensive
incomes related to the equity of the purchased party held before the purchase date shall be
transferred into the current investment incomes in the disposal of the investment. 2) In the
consolidated financial statements, the equity of the purchased party held before the purchase date
should be measured again according to the fair value of the equity on the purchase date, and the
gap of the fair value and the book value should be recorded into the current investment incomes.
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Other comprehensive incomes related to the equity of the purchased party held before the
purchase date shall be transferred into the current investment incomes on the purchase date.
③With the exception of the business combination:
The long-term equity investment acquired by the payment in cash should be as the investment cost
as per the actual purchase payment. The investment costs include fees, taxes and other necessary
expenses directly related to the achieved long-term equity investment.
The long-term equity investment acquired by the issuance of equity securities should be as the
investment cost as per the fair value of the issued equity securities.
The long-term equity investment acquired by the non-monetary assets exchange (the exchange
with the commercial substance) should be as the investment cost as per the fair value of the
investment and the payable taxes.
For the long-term equity investment acquired by the debt reorganization, the creditors shall
recognize the fair value of the enjoyed shares as the investment of the debtors.
(3) Subsequent Measurement and Recognition Method of Profit and Loss
The cost method shall be adopted to account the long-term equity investment controlled by the
invested party and the equity method shall be adopted to account the long-term equity investment
with joint control or significant influence.
(4) Recognition Criteria for the Invested Party with Joint Control or Significant Influence
The joint control on the economic activity appointed as per the contract shall exist when the major
finance and the operating decision related to the economic activity are agreed by the invested
party sharing the control right, which shall be regarded as the joint control on the invested party
implemented by other parties. The decision power to participate in the finance and operating
decision on the enterprise, but without control or joint control with other parties to formulate these
policies, shall be regarded as the significant influence on the invested party implemented by the
investment enterprise.
(5) Impairment Test Method and Withdrawing Method
For the impairment test method and the withdrawing method of the long-term equity investment,
please refer to “Long-term Assets Impairment in Article 11 of Important Accounting Policies and
Accounting Estimates in Notes 5 of Financial Statements”.
15. Entrusted Loans
The entrusted loans shall be made bookkeeping according to the actually entrusted loan amount.
The receivable interests shall be withdrawn according to the interest rate stated in the entrusted
loans.
For the impairment test method and the impairment provision withdrawing method of the
entrusted loans, please refer to “Long-term Assets Impairment of Important Accounting Policies
and Accounting Estimates in Notes 5 of Financial Statements”.
16..Investment Real Estates
The measurement mode of investment property
The measurement by the cost method
Depreciation or amortization method
The term “Investment real estates” refers to the real estates held for generating rentand/orcapital
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
appreciation, including the right to use any land which has already been rented, the right to use
any land which is held and prepared for transfer after appreciation & the right to use any building
which has already been rented.
The company shall make a measurement to the investment real estate through the cost pattern.The
company shall adopt the same depreciation policy as its fixed assets for the investment real estates
measured by the cost pattern-buildings for renting & the same amortization policy as its intangible
assets for the right to use any land for renting.
For the impairment test method and the impairment provision withdrawing method of
the .Investment Real Estates, please refer to “Long-term Assets Impairment of Important
Accounting Policies and Accounting Estimates in Notes 5 of Financial Statements”.
Basis for selecting fair value measuremen
17.Fixed assets
（1）Confirmation conditions of fixed assets
Fixed assets refer to physical assets owned for purpose of production, service providing, leasing
or management, and operation with service life of more than one year. Fixed assets are recognized
when all of the following conditions are satisfied：Financial benefits attached to the fixed asset is
possibly inflowing to the Company;(2) The cost of the fixed asset can be reliable measured.
（2）Depreciation method
Evpected useful Annual depreciation
Type Depreciation methnod Residual rate（%）
life(Year) rate(%)
Guangfo Expressway Working flow basis 28 years 0% Working flow basis
Fokai
Expressway-Xiebian to Working flow basis 40 years 0% Working flow basis
Sanbao Section
Fokai
Expressway-Sanbao to Working flow basis 30 years 0% Working flow basis
Shuikou Section
Jingzhu Expressway
Working flow basis 30 years 0% Working flow basis
Guangzhu Section
House Building The straight-line method 20-30 years 3%-10% 3%-4.85%
Machine Equipment The straight-line method 10 years 3%-10% 9%-9.7%
Transportation
The straight-line method 5-8 years 3%-10% 11.25%-19.4%
Equipment
Electric Equipment and
The straight-line method 5-15 years 3%-10% 6 %-19.4%
other
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Provision for depreciation of highways and bridges is made with work amount method.
Estimatednet residual value rate is zero. Estimated useful life is determined according to the
period of peration right in respect of charge collection. The concrete calculation method is as
follows: The amount of provision for depreciation per standard vehicle traffic volume is to be
calculated based on the estimated total standard vehicle traffic volume within expected useful life
of highways and bridges and the original value or book value of highways and Bridges. Then
provision for depreciation is made according to the actual standard vehicle traffic volume in each
fiscal period.
The company regularly rechecks the estimate total standard vehicle traffc volume
withintheremaining operation period of highways and bridges. When there is big difference
between actual standard vehicle traffic volume and estimated standard vehicle traffic volume,
the Company will re-estimate future total standard vehicle traffic volume and adjust the
provision for depreciation per standard vehicle traffic volume to ensure that the book value of
relevant highways and bridges will be completely amortized within useful life.
The company adopts the straight line method for the depreciation of fixed assets
excepthighways & bridges, and recognizes the depreciation rate according to the fixed asset group,
expected useful life & the expected net salvage value rate.
(3) Test Method for Fixed Asset Impairment and Counting & Drawing Method for Fixed Asset
Impairment Reserves
For the impairment test method and the impairment provision withdrawing method of the Fixed
assets, please refer to “Long-term Assets Impairment in Article 11 of Important Accounting
Policies and Accounting Estimates in Notes 5 of Financial Statements”.
18.Construction-in process
Whether the Company needs to comply with the disclosure requirements for specific industrie
No
1. Calculation of Construction-in-process:The constructions in process are classified & accounted
according to the established projects.
2. Standard & Time Point for Carrying Constructions in Process Forward to Fixed Assets
All the expenditures that bring the construction in process to the expected condition for use shall
be the credit value of the fixed asset. If the fixed asset construction in process has already reached
the expected condition for use, but hasn’t been made the final account; it shall be carried forward
to a fixed asset according to its estimated value based on the budget, cost or actual cost of the
construction starting from the date when it reaches the expected condition for use, and the fixed
asset shall be depreciated according to the company’s depreciation policy for fixed assets. After
the final account has been made, the original provisional estimated value shall be adjusted
according to the actual cost, but the depreciation which has originally been counted & drawn shall
not be adjusted.
3．Test Method for Construction-in-Process Impairment and Counting & Drawing Method
For the impairment test method and the impairment provision withdrawing method of the
Construction-in process , please refer to “Long-term Assets Impairment in Article 11 of Important
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Accounting Policies and Accounting Estimates in Notes 5 of Financial Statements”.
19.Loan expenses
1. Recognition principles for capitalizing of loan expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing or
production of asset satisfying the conditions of capitalizing, are capitalized and accounted as cost
of related asset. Other borrowing expenses are recognized as expenses according to the occurred
amount, and accounted into gain/loss of current term.
The assets meeting capital conditions refer to the fixed assets, investment real estates and
inventories which are constructed or produced in a long time to reach the predicted use or sale
state.
When a loan expense satisfies all of the following conditions, it is capitalized:
1. Expenditures on assets have taken place, asset expenditures include the assets used to construct
or produce the assets which meet the capitalization conditions, and expend by cash or transferring
non-cash assets or bearing interest debt;
2. Loan costs have taken place;
3. The construction or production activities to make assets to reach the intended use or sale of state
have begun.
2. Duration of capitalization of Loan costs
The capitalization period refers to the period from starting capitalization of loan costs to the stop
of capitalization, the period of the break of capitalization of Loan costs is not included.
When the construction or production meets the intended use or sale of state of capitalization
conditions, the Loan costs should stop capitalization.
When the construction or production meets the conditions of capitalization and can be used
individually, the capitalization of the loan costs of the assets should be stopped.
Where each part of a asset under acquisition and construction or production is completed
separately and is ready for use or sale during the continuing construction of other parts, but it can
not be used or sold until the asset is entirely completed, the capitalization of the borrowing costs
shall be ceased when the asset is completed entirely.
3．Capitalization Suspension Period
Where the acquisition and construction or production of a qualified asset is interrupted
abnormally and the interruption period lasts for more than 3 months, the capitalization of the
borrowing costs shall be suspended. If the interruption is a necessary step for making the qualified
asset under acquisition and construction or production ready for the intended use or sale, the
capitalization of the borrowing costs shall continue. The borrowing costs incurred during such
period shall be recorded into the profits & losses at the current period, till the acquisition and
construction or production of the asset restarts.
4. Calculation of the amount of capitalization of Loan costs
Interest expense due to specialized Loan and its auxiliary expenses shall be capitalized before the
asset which satisfies the capitalizing conditions reaches its useable or saleable status.
Interest amount of common Loan to be capitalized equals to accumulated asset expense less
weighted average of specialized loan part of asset expense multiplies capitalizing rate of common
Loan occupied. Capitalizing rate is determined according to weighted average interest of common
Loan.
If the Loan has discount or premium, the discount or premium amount should be determined
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
according to actual interests in each accounting period. The interest amount should be adjusted in
each period.
20.Intangible assets
(1) Pricing method, useful life and impairment test
1. The valuation methods of intangible assets
(1)The initial measurement is conducted according to the actual cost when the intangible
assets are acquired
The cost of the purchased intangible assets includes its buying price, relevant tax and the othe
expenses that are directly attributed to this assets meeting its predetermined objective and other
expenses that occur. The buying price of intangible assets is over the deferred payment under
normal credit conditions, which has the nature of financing materially, the cost of intangible assets
is determined on the basis of the present value of its buying price.
We acquire the mortgaged intangible assets from debtors through debt restructuring and
determine the entry value on the basis of the fair value of the intangible assets,we have the balance
between the book value of debt restructuring and the fair value of intangible assets used for
mortgage charged to the current profit and loss.
The entry value of the non-monetary assets exchanged into by the non-monetary assets are
determined on the basis of the fair value of the assets exchanged out if the exchange of
non-monetary assets has commercial nature and the assets exchanged into or out can be reliably
measured, unless there is authentic evidence indicating that the fair value of assets exchanged into
are more reliable; if the non-monetary assets that cannot meet the above prerequisite use the book
value of the assets exchanged out and relevant taxes payable as the cost of the non-monetary
assets, the profit and loss is not confirmed.
The entry value of the intangible assets acquired by the absorption merger under the control of one
company is determined by the book value of the merged party;the entry value of the intangible
assets acquired by the absorption merger that is not under the control of one company is
determined by the fair value.
The cost of the intangible assets developed internally includes the materials consumed in
developing the assets, cost of service, registration fees, other patent used in developing,
amortization of concession and interest charges meeting the capitalization conditions and othe
direct costs that occur before the intangible assets meeting the predetermined objective.
（2）Subsequent measurement
The Company analyses and makes judgment of its serviceable life when acquiring the intangible
assets.
The intangible assets that have limited serviceable life are amortized by the straight-line method
during the period when the assets can bring about economic interests;The intangible assets are
deemed as uncertain serviceable life and are not amortized if it is impossible to expect the period
when the assets could bring about economic interests.
At the end of period, the Group shall check the service life and amortization method of intangible
assets with finite service life, if there is any change, it shall be regarded as a change of the
accounting estimates. Besides, the Group shall check the service life of intangible assets without
certain service life, if there is any evidence showing that the period of intangible assets to bring
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
the economic benefits to the enterprise can be prospected, it shall be estimated the service life and
amortized in accordance with the amortization policies for intangible assets with finite service life.
（2） Provision for the depreciation of value of the intangible assets
For the impairment test method and the impairment provision withdrawing method of the
Intangible assets, please refer to “Long-term Assets Impairment of Important Accounting Policies
and Accounting Estimates in Notes 5 of Financial Statements”.
21.Impairment of Long-term assets
(1) Scope
The assets Impairment main includes long-term equity investment, investment property (the
investment property measured by the fair value excluded), fixed assets, projects under
construction, engineering material, intangible assets (the capitalized development expenditure
included), asset group, combination of asset group, business reputation, etc..
(2) Recognition of Possible Impairment Assets
The company makes judgment of the assets if there exists the possible impairment at the balance
sheet date. The intangible assets with indefinite goodwill and service life due to the combination
of enterprise, shall be conducted the impairment test every year regardless of the impairment. The
impairment may occurs for the assets if there is the following status:
① The market price of assets fall sharply in the current period, and the decline is obviously
beyond that estimated due to the passage of time or normal use.
② The significant changes in the economy, technology or legal environment operated by the
company and the assets market in the current or the near future adversely affect the company.
③ The improvement of the market interest rates or other market investment returns in the current
period, influence the company to calculate assets estimating the discount rate of the present value
of future cash flow and result in the sharp drop of the recoverable amount of the assets.
④ There is evidence that shows the assets have become obsolete or the entities have been
damaged.
⑤ The assets have been or will be idle, terminated the use or planned to dispose in advance.
⑥ The evidence in the internal report of the company shows that the economic performance of
assets has been less than or lower than the expected, such as the net cash flow created by assets or
the achieved operating profit (or loss) is far below (or above) the estimated amount.
⑦ Other evidences indicate the impairment of assets may have occurred.
(3) Measurement of the Recoverable Amount of the Assets
The recoverable amount shall be estimated if there exists the impairment for the assets. The
recoverable amount should be recognized according to the higher one between the net amount of
the fair value minus the disposal costs and the present value of the cash flow of assets expected in
the future.
(4) Determination of Asset Impairment Loss
The measurement results of the recoverable amount show that the book value of assets shall be
reduced to the recoverable amount and the reduced amount shall be recognized as the impairment
loss of assets and recorded into the current profits and losses, and the impairment provisions of the
relevant assets are withdrawn if the recoverable amount of the assets is less than the book value.
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
After the recognition of the assets impairment loss, the depreciation or amortization costs of the
impairment assets should be made adjustment accordingly in the future period in order to make
the assets to systematically amortize the book value of the assets after adjusted within the
remaining service life (the estimated residual value deducted). The impairment loss of assets after
recognized shouldn’t be reversed in the future accounting period.
(5) Recognition and Impairment Treatment of Assets Group
If there is the impairment for one asset, the company shall estimate the recoverable amount based
on the individual asset. If it is difficult for the company to estimate the recoverable amount of the
individual asset, the recoverable amount of asset group shall be recognized on the basis of the
asset group which the asset is belong to. The recognition of the asset group should be made on the
basis of the main cash inflow generated by the assets group that if is independent to the cash
inflow of other assets or assets group.
The corresponding impairment loss shall be recognized if the recoverable amount of the assets
group or the assets group combination is less the book value (the book value of the assets group or
the assets group combination should include the amortization quota relevant to corporate assets
and goodwill for the assets group or the assets group combination amortized by the corporate
assets and the goodwill). The book value of goodwill in the amortized assets group or assets group
combination shall be firstly offset for the impairment losses, and the book value of other assets
shall be offset in proportion according to the proportion of the book value of other assets in the
assets group or the assets group combination, with the exception of the goodwill.
(6) The Goodwill Impairment
The company has conducted the impairment test at least every year for the goodwill established by
the business combination. The book value of the goodwill generated by the combination shall be
amortized into the related asset group from the purchase date. If difficult to amortize into the
relevant asset group, the book value shall be amortized into the relevant asset group combination.
The relevant asset group or asset group combination refers to that benefitting from the synergistic
effect of the business combination and is not more than the report portion recognized by the
company.
When the relevant asset group or the asset group combination including the goodwill are
conducted the impairment test, the impairment test should be firstly conducted for the asset group
without the goodwill or the asset group combination, the recoverable amount shall be calculated
and the corresponding impairment loss shall be recognized by comparison with the relevant book
value if there exists the impairment for the asset group relevant to the goodwill or the asset group
combination. Then the impairment test should be conducted for the asset group with the goodwill
or the asset group combination, the impairment loss of the goodwill shall be recognized and made
the treatment according to the provisions of the asset group impairment stated in the notes if the
recoverable amount of the relevant asset group or the asset group combination is less than the
book value by comparison of the book value of these relevant asset group or the asset group
combination (including the book value of the goodwill amortized) with the recoverable amount.
22.Long-term amortizable expenses
Long-term prepaid expenses refer to that enterprises have already spent, and amortization periods
of all expenses are more than one year (excluding 1 year), they should be amortized in the
regulated years.
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
23.Remuneration
（1）Scope of employees' salary
Remuneration refers to all kinds of rewards or compensation that the Company gives to get in
return for the services its employees provide or employment termination. It includes short-term
compensation, post-employment benefits, demission benefits and other long-term employee
benefits.Enterprises to provide employees spouse, child welfare, dependents, survivors and other b
eneficiaries of deceased employees, etc., also belong to payroll.
During the company's accounting staff to provide services, the actual wages, bonuses, allowances
and subsidies, welfare, medical insurance, work injury insurance and maternity insurance and othe
r social insurance, housing fund confirmed, labor union funds, employee education funds and as a
liability profit or loss or costs related assets. If the debt is expected to provide services after the en
d of the annual reporting period in which an employee can not be fully paid within twelve months,
and the financial impact is material, the amount will be discounted liabilities measured after.
(2) Accounting methods for post-employment benefits
Post-employment benefits refer to the compensation and benefits that the Company gives to get in
return for employees’ services for their retirement or employment termination, excluding
short-term compensation and demission benefits. It falls into two categories, defined contribution
plans and defined benefit plans.
① The defined contribution plan: the company shall no longer bear the further obligation to pay
severance benefit plans after the company deposits the fixed costs to the independent funds. The
basic pension insurance and the unemployment insurance shall be recognized as the liability
according to the payable amount accounted by the defined contribution plans and recorded onto
the current profits and losses or the relevant asset costs during the accounting period of the
services provided by the staffs.
② The defined benefit plan: the severance benefit plans with the exception of the defined
contribution plans.
(3) Accounting Treatment Method of Demission Welfare
The Company offers compensation to terminate employment with its employees before it expires
or encourage them to accept lay-off. Such compensation is demission benefits and counted in
current profit and loss. The employee compensation liabilities generated by the demission welfare
shall be recognized on the early date and recorded into the current profits and losses: (1) when the
company can’t withdraw the demission welfare provided due to the rundown suggestion or the
termination of labor relations plans. (2) when the enterprise recognizes the costs or the expenses
related to the reorganization of demission welfare payment.
The economic compensation before the official retirement date shall be belong to the demission
welfare when the implementation of the internal retirement plan for workers. During the period
from the termination of service date to the normal retirement date, the paid internal retirement
payroll and social insurance charges shall be once recorded into the current profits and losses. The
economic compensation after the official retirement date (such as the normal retirement pension)
should be handled according to the welfares after the demission.
24.Estimated liabilities
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
The company should recognize the related obligation as a provision for liability when the
obligation meets the following conditions:
(1) That obligation is a present obligation of the enterprise;
(2) It is probable that an outflow of economic benefits from the enterprise will be required to settle
the obligation;
(3) A reliable estimate can be made of the amount of the obligation.On the balance sheet date, an
enterprise shall take into full consideration of the risks, uncertainty, time value of money, and
other factors pertinent to the Contingencies to measure the estimated liabilities in accordance with
the best estimate of the necessary expenses for the performance of the current obligation.
When all or some of the expenses necessary for the liquidation of an estimated liabilities of an
enterprise is expected to be compensated by a third party, the compensation should be separately
recognized as an asset only when it is virtually certain that the reimbursement will be obtained.
Besides, the amount recognized for the reimbursement should not exceed the book value of the
estimated liabilities
25.Bond payable
When the company is issuing bonds, the total price issued should be included in the “Payable
bonds” subject.
The difference between bond issuance total amount and the total amount of bond face
valueshould be worked as bond premium or discount and be amortized within the bond period
according to actual interest rate and vertical line method, and be treated according to borrowing
costs described below.
26. Revenues
The company’s incomes mainly include the toll service revenues and the services provision.
(1) The recognition principle of the toll service revenues is that the toll revenues refer to the
charges of operating the toll roads and shall be recognized in the actual charge.
(2) The recognition principle of the services provision is as follows:
The labor services started and completed within the same fiscal year shall be recognized as the
revenues when the labor services finished. If the labor services started and completed in the
different fiscal year and under the reliable estimation of the provided services transaction results,
the company shall recognize the relevant service incomes according to the completion percentage
method at the balance sheet date. The results of the transaction can be estimated reliably when the
following requirements are all met: (1) total revenues and total labor costs can be measured
reliably. (2) the economic benefits relevant to the transaction will flow into the enterprise. (3) the
competition degree of the labor services can be reliably determined.
27.Other Comprehensive Incomes
Other comprehensive incomes refer to the profits and losses unrecognized in the current profits
and losses according to other provisions of accounting standards. There are two reports:
(1) Other comprehensive incomes that unable to be reclassified into the profits and losses in the
future accounting period, mainly including the changes caused by the net liabilities and the net
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
assets of the defined benefit plan that re-measured and the shares of other comprehensive incomes
that accounted and unable to be reclassified into the profits and losses for the invested party in the
future accounting period according to the equity method.
(2) Other comprehensive incomes that reclassified into the profits and losses in the future
accounting period when the requirements are met, the shares of other comprehensive incomes that
accounted and reclassified into the profits and losses for the invested party in the future
accounting period according to the equity method when the requirements are met, the profits or
losses caused by the fair value changes of the sellable financial assets, the profits or losses
generated by the sellable financial assets reclassified for the held-to-maturity investment, the
effective hedging portion of the profits and losses issued by the cash flow hedging instruments,
and the translation differences of foreign financial statements.
28. Government Grants
（1）Government Grants
Government grants means that the Company obtains monetary or non monetary assets free of
charge from the government, excluding the capital invested by the government as an owner.
The company recognizes the government grants when the company can meet the conditions of
government grants and be able to receive the government grants. Thereinto:
(1) If the government grant is a monetary asset, it shall be measured according to the amount
received or receivable; If the government grant is a non-monetary asset, it shall be measured at fair
value, and if the fair value cannot be obtained reliably, it shall be measured according to the nominal
amount.
⑵The government grants pertinent to assets are used to write down the carrying value of the
underlying assets or are recognized as deferred income. If the government grants pertinent to
assets are recognized as deferred gains, it shall be included in the profits and losses in a reasonable
and systematic manner within the useful life of the underlying asset. The Government grants,
measured in nominal amounts, are directly included in current profits and losses. The government
grants pertinent to income that are used to compensate the relevant costs or losses of the subsequent
period of the enterprise are recognized as deferred income and are credited to the current profit or
loss or are written down to offset the costs for the period when the relevant expenses are
recognized; those government grants used for compensating the related expenses or losses incurred
shall be directly included in the current profits and losses.
⑶ Government grants related to the daily activities of the enterprise are included in other
income or are written down to offset costs in accordance with the economic business nature.
Government grants that are not related to the day-to-day activities of the enterprise are included in
non-operating income and expenditure.
Where the recognized government grant needs to be refunded, then the accounting treatment
shall be carried out in the period that it needs to be refunded according to the following
stipulations: (1) Where it was written down the book value of the underlying assets at the time of
initial recognition, then the book value of the assets shall be adjusted; (2) Where there is a related
deferred income, it shall write-down the book balance of related deferred income and the excess
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
part shall be included in the current profit and loss; (3) Where belongs to other cases, that shall be
directly included in the current profits and losses.
29.Deferred income tax assets and deferred income tax liabilities
The company is likely to determine the deferred income tax assets produced from deductible
temporary differences with the limit of offsetting the taxable income of temporary difference.
The Company confirms the temporary differences of the taxable that is not paid in the current and
prior periods as the deferred income tax liabilities. However, the goodwill, the transactions formed
from non-business merger and those will affect either accounting profit or the temporary
differences of the taxable income when the transactions occur are not included in the deferred
income tax liabilities.
30.Accounting Methods of Income tax
The company’s income tax is accounted in Balance sheet liability approach.
The company recognizes the sum of current income tax and deferred tax as the income tax
expenses(or income) in the income statement on the basis of calculating and determining the
income tax of the current period(namely the current taxes payable) and the deferred tax (the
deferred tax expenses or income ), but excluding the effects of the business combination and
the income taxes related to the transactions or events directly recorded in the owner’s rights
and interests.
31.Change of main accounting policies and estimations
⑴Change of accounting policies
√ Applicable □Not applicable
In accordance with requirements of the Notice Concerning Printing of the Revised
Accounting Standards for Business Enterprises No. 16- Governmental Subsidies (CK[2017]
No.15), the company shall include the governmental subsidies related to the enterprise daily
activities into the other income or offset relevant costs subject to the economic business property;
and include those irrelevant to the enterprise daily activities into the non-business income.
Therefore, the company shall adopt the prospective application for such accounting policy change,
which will not produce any influence on profits and losses, total assets and net assets listed in the
current and previous periods.
Pursuant to the Notice on the Revision and Issuance of the Format for General Enterprise
Financial Statements (Cai Kuai [2017] No.30), the gains and losses on the disposal of non-current
assets and the gains and losses of non-monetary asset exchange previously stated in
\"Non-operating income\" and \"Non-operating expenses\" are required to be presented in the \"Gains
on disposal of assets\". Accordingly, the Company applied retrospective adjustment method to the
change of such accounting policy, reduced non-operating income by RMB10,105,140.34 in 2016
and increased gains on disposal of assets by RMB10,105,140.34 in 2016, which would not affect
the net profit presented in the previous period.
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
⑵Change of accounting estimations
□ Applicable √ Not applicable
VI. Taxation
1. Major category of taxes and tax rates
Tax category Tax basis Tax rate
Toll income, Rent income and Labour
VAT 3%、5%、6%、11%、17%
income
City maintenance and construction tax The actual payment of turnover tax 7%、5%
Enterprise income tax Taxable income 25%
.Education surcharges The actual payment of turnover tax 3%
Local Education surcharges
The actual payment of turnover tax 2%
2.Preferential tax
Nil
VII. Notes to the major items of consolidated financial statement
1.Monetary Capital
In RMB
Items Amount in year-end Amount in year-begin
Cash 66,065.04 50,695.89
Bank deposit 2,362,279,050.70 2,602,516,079.26
Other 697,584.68 712,869.10
Total 2,363,042,700.42 2,603,279,644.25
Other notes
Nil
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
2. Account receivable
1.Classification account receivables.
In RMB
Amount in year-end Amount in year- begin
Book Balance Bad debt provision Book Balance Bad debt provision
Classification Book value Book value
Amount Proportio Amount Proportio Amount Proportio Amount Proportion(
n(%) n(%) n(%) %)
Account receivable with
single major amount and
65,760,470.23 70.64% 65,760,470.23 32,054,176.60 78.46% 32,054,176.60
withdrawal bad debt provision
for single item
Account receivable
withdrawalbad debt
27,331,295.37 29.36% 449,140.15 1.64% 26,882,155.22 8,800,188.07 21.54% 173,167.66 1.97% 8,627,020.41
provision by group of credit
risk characterstics
Total 93,091,765.60 100.00% 449,140.15 0.48% 92,642,625.45 40,854,364.67 100.00% 173,167.66 0.42% 40,681,197.01
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Receivable accounts with large amount individually and bad debt provisions were provided
√ Applicable □Not applicable
In RMB
Amount in year-end
Receivable accounts（Unit） Receivable Bad debt
Proportion Reason
accounts provision
Guangdong Union Electronic Services Been recovered af
45,447,260.32
Co., Ltd.
ter the period
Shandong Boan Intelligent Been recovered af
10,887,387.60
Technology Co., Ltd.
ter the period
Been recovered af
Guangdong Humen Bridge Co., Ltd. 9,425,822.31
ter the period
Total 65,760,470.23 -- --
Account receivable on which bad debt provisions are provided on age basis in the group：
√ Applicable □Not applicable
In RMB
Balance in year-end
Aging Withdrawal
Receivable accounts Bad debt provision
proportion
Subitem within 1 year
Subtotal within 1 year 24,434,703.20
1-2 years 2,307,520.86 230,752.09 10.00%
2-3 years 509,071.31 152,721.39 30.00%
3-4 years 15,833.33 7,916.67 50.00%
4-5 years 64,166.67 57,750.00 90.00%
Over 5 years 100.00%
Total 27,331,295.37 449,140.15 1.64%
Notes of the basis of recognizing the group:
Refer to \"Notes 5 the financial statements of the important accounting policies and accounting esti
mates No. 11 Recognition and withdrawal method of bad debts.
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt
provision：
□ Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to accrue bad debt provision:：
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Nil
（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is RMB275,972.49 ; recovery or payback for bad
debts Amount is RMB0.00.
Where the current bad debts back or recover significant amounts:Nil
（3）The current accounts receivable write-offs situation
Nil
Explanation for write-off of account receivables:Nil
（4）The ending balance of other receivables owed by the imputation of the top five parties
Name Amount Aging Proportion( Bad debt
%) provision
Guangdong Union Electronic Services Within 1 year
45,447,260.32 48.81
Co., Ltd.
Shandong Boan Intelligent Technology Within 1 year
10,887,387.60 11.70
Co., Ltd.
Guangdong Humen Bridge Co., Ltd. 9,425,822.31 Within 1 year 10.13
Guangdong Jingzhu Expressway Within 1 year
4,821,700.01 5.18
Guangzhu North Section Co., Ltd.
Guangdong Guanghui Expressway Co., Within 1 year
4,025,633.55 4.32
Ltd.
Total 74,607,803.79 -- 80.14
（5）Account receivable which terminate the recognition owning to the transfer of the financial
assets
Nil
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of
accounts receivable
Nil
3. Prepayments
（1）Age analysis
In RMB
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Balance in year-end Balance in year-begin
Age
Amount Proportion（%） Amount Proportion（%）
Within 1 year 4,238,442.26 95.21% 2,655,392.35 92.84%
1-2 years 8,721.49 0.20% 35,000.00 1.22%
2-3 years 35,000.00 0.79%
Over 3 years 169,738.00 3.80% 169,738.00 5.94%
Total 4,451,901.75 -- 2,860,130.35 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled
in time:
Nil
(2) Top 5 of the closing balance of the prepayment colleted according to the prepayment target
Name Amount Time Proportion(%)
Ping An Insurance 1,331,158.74 Within 1 year 29.90
Guangzhou Tuzhiling Computer Within 1 year
910,259.37 20.45
Technology Co., Ltd.
Guangzhou Haohang Electronic Within 1 year
851,784.42 19.13
Technology Co., Ltd.
Guangdong Litong Real estate Within 1 year
700,087.62 15.73
Investment Co., Ltd.
Guangzhou Maritime Court 169,738.00 Over 5 years 3.81
Total 3,963,028.15 89.02
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
4.Other accounts receivable
(1) Other accounts receivable disclosed by category
In RMB
Balance in year-end Balance in year-begin
Book Balance Bad debt provision Book Balance Bad debt provision
Type
Amount Proporti Amount Proportion Book value Amount Proportio Amount Proportio Book value
on(%) (%) n(%) n(%)
Other Account receivable
with single major amount
53,351,565.01 75.72% 53,351,565.01 100.00% 53,351,565.01 66.56% 53,351,565.01 100.00%
and withdrawal bad debt
provision for single item
Other Account receivable
withdrawal bad debt
17,110,594.66 24.28% 1,695,082.59 9.91% 15,415,512.07 26,807,191.45 33.44% 1,639,311.92 6.12% 25,167,879.53
provision by group of
credit risk characteristics
Other Account receivable
with minor individual
amount but bad debt
provision is provided
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Total 70,462,159.67 100.00% 55,046,647.60 78.12% 15,415,512.07 80,158,756.46 100.00% 54,990,876.93 68.60% 25,167,879.53
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
√ Applicable □ Not applicable
In RMB
Balance in year-end
Other receivable（Unit）
Other receivable Bad debt provision Proportion Reason
The parent company once paid RMB 33,683,774.79 into Kunlun Securities Co., Ltd,
Guangdong Expressway technology investment Co., Ltd once paid RMB 18,000,000.00 into
Kunlun Securities Co., Ltd. Qinghai Province Xining City’s intermediate people’s court made
a adjudication under law declared that Kunlun Securities Co., Ltd went bankrupt and repaid
debt in Novemeber 11, 2006. On March 2007, The Company and Guangdong Expressway
Kunlun Sercurities
49,343,885.10 49,343,885.10 100.00% Technology Investment Co., Ltd had switched the money that paid into Kunlun Secutities
Co.,Ltd.
Co., Ltd to other account receivable, and follow the careful principle to doubtful debts
provision. The RMB 710,349.92 Credit was Recovered in 2008, and the provision for bad
debt is deducted, The RMB977,527.77 credit was recovered in 2011, and the provision for
had debt is deducted.The RMB 652,012.00 Cridit was recovered in 2014, and the provision
for had debt is deducted.
Guangdong Expresswaytechnology investment Co., Ltd .should charge Beijing Gelin
Beijing Gelin Enze Enze Organic Fertilizer Co., Ltd.for RMB12,220,079.91. Eight millions of it was entrust loan,
Organic Fertilizer Co., 4,007,679.91 4,007,679.91 100.00%
three million was temporary borrowing RMB 12,400.00 is the commission loan interest, the
Ltd.
rest of it was advance money for another, Beijing Gelin Enze Organic Fertilizer Co., Ltd’s
operating status was had and had already ceased producing, Accordingly, the controlling
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
subsidiary of the company Guangdong Expressway Investment Co., Ltd. accounted full
provision for Bad debt RMB 12,220,079.91 rpovision.
The company in 2014 recovered arrears of RMB 8,000,000.00, rushed back to the provision f
or bad debts and write off uncollected interest entrusted loans according to the settlement agre
ement of RMB 212,400.00.
Total 53,351,565.01 53,351,565.01 -- --
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Other receivable accounts in Group on which bad debt provisions were provided on age analyze
basis：
√Applicable □Not applicable
In RMB
Amount in year-end
Aging Withdrawal
Other receivable Bad debt provision
proportion
Subitem within 1 year
Subtotal within 1 year 8,992,779.33
1-2 years 10.00%
2-3 years 32,457.98 9,737.39 30.00%
Over 3 years
3-4 years 302,715.87 151,357.94 50.00%
4-5 years 90.00%
Over 5 years 1,533,987.26 1,533,987.26 100.00%
Total 10,861,940.44 1,695,082.59 15.61%
Notes of the basis of recognizing the group:
Refer to \"Notes 5 the financial statements of the important accounting policies and accounting esti
mates No. 11 Recognition and withdrawal method of bad debts.
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt
provision
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to accrue bad debt provision:
√ Applicable □ Not applicable
Amount in year-end
Other account Bad debt Withdrawal Reason
Name
receivable provision proportion
（%）
Guangdong Litong Real estate Investment Deposit
1,505,864.00
Co., Ltd
Guangdong Guanghui Expressway Co., Ltd 1,413,708.90 Deposit
Administration
uangdong Expressway Co., Ltd. 588,877.38 expenses,Quality
guarantees fund
Administration
Zhaoqing Yuezhao Highway Co., Ltd. 415,614.00
expenses,Quality
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Amount in year-end
Other account Bad debt Withdrawal Reason
Name
receivable provision proportion
（%）
guarantees fund
Guangdong Xinyue Traffic Investment
415,442.60 Quality guarantees
Co.,Ltd.
Beijing Shibang Weilishi Property
393,331.00 Deposit
Management Services Co., Ltd.
Guangdong Guangzhu West Line
185,366.60 Quality guarantees
Expressway Co., Ltd.
Guangshen Zhu Expressway Co., Ltd. 185,014.40 Quality guarantees
CRCC Harbour & Channel Engineering
165,169.25 Quality guarantees
Bureau Group Co., Ltd.
Beijing Gongke Feida Transport Engineering
115,475.20 Quality guarantees
Development Co., Ltd.
Sichuan Intelligent Trafficv systems
100,000.00 Bid deposit
Management Co., Ltd.
Guangdong Feida Transportation Engineering
90,920.75 Quality guarantees
Development Co., Ltd.
Guangdong Highway Construction Co., Ltd. 76,563.00 Quality guarantees
Chengdu Shuguang Fibre-optical Metwork
59,758.09 Quality guarantees
Co., ltd.
Guangdong Jingzhu Expressway Guangzhu
55,694.00 Quality guarantees
North Section Co., Ltd.
Guangdong Boda Expressway Co., Ltd. 51,808.80 Quality guarantees
Guangdong West Coastal Expressway Zhuhai
40,967.05 Quality guarantees
Section Co., Ltd.
Guangzhou Chengcheng Auto Leasing
30,000.00 Deposit
Service Co., ltd.
Guangdong Jiangzhong Expressway Co., Ltd. 28,120.00 Quality guarantees
Guangzhou Tuzhiling Computer Technology
25,438.80 Quality guarantees
Co., Ltd.
Guangdong Road & Bridge Construction
24,972.70 Quality guarantees
Development Co., Ltd.
Guangzhou Express Transportation
22,094.40 Quality guarantees
Construction Co., Ltd.
Guangzhou Beihuan Expressway Co., Ltd. 16,590.40 Quality guarantees
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
Amount in year-end
Other account Bad debt Withdrawal Reason
Name
receivable provision proportion
（%）
Guangzhou Huanan Luqiao Industry Co., Ltd. 16,000.00 Quality guarantees
Guangzhou Saitisi Electromechanical
15,875.00 Quality guarantees
Installation Engineering Co., Ltd.
Shanxi Hantang Computer Co., Ltd. 14,250.00 Quality guarantees
Guangdong Humen Bridge Co., Ltd. 12,775.50 Quality guarantees
Guangzhou Daguang Expressway Co., Ltd. 12,749.60 Quality guarantees
Guangzhou Dingrong Information
10,950.00 Quality guarantees
Technology Co., Ltd.
Guangzhou Expressway Co., Ltd. 10,799.20 Quality guarantees
Guangdong Kaiyang Expressway Co., Ltd. 10,608.00 Quality guarantees
Guangzhou Suihua Expressway Co., Ltd. 10,400.00 Quality guarantees
Zhongshan Global Environmental
10,000.00 Deposit
Engineering Co., Ltd.
Guangdong Gaoda Property Development
9,940.70 Deposit
Co.,ltd.
Guangdong Jiangzhao Expressway
9,098.40 Quality guarantees
Management Center
Guangdong Zhonglin Electrical Installation Quality guarantees
8,820.00
Engineering Co., Ltd. fund
Quality guarantees
Guangdong Maozhan Expressway Co., Ltd. 8,747.20
fund
Quality guarantees
Guangdong Shanfen Expressway Co., Ltd. 8,028.80
fund
