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 bonusshares（includingtax）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||||
||510100|||
|Address||||
|Office Address|45-46/F, Litong Plaza, No.32, Zhujiang East Road, Zhujiang New City, Tihe Disrtict , Guangzhou|||
|Postal code of the office||||
||510623|||
|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|||2015||
|||||last year（％）|||
||2017||||||
|||||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|1,509,922,398.70||1,001,205,945.39||||
|shareholders of the listed||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|0.72||0.52||||
|share(RMB/Share)(RMB/Share||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|9,023,071,118.45||8,289,020,301.39||||
|shareholders of the listed||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|-2,745,683.68||||
|gain/loss(including the write-off part for||8,644,766.55|21,188,094.05||
|which assets impairment provision is made)|||||
|Govemment subsidies recognized in|385,932.17||||
|currentgain and loss(excluding those closely|||||
|||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|||||
||61,458,075.96|||It receives thecompensation59,995,667.68 yuanfor early terminationof charging forJiujiang Bridge in thecurrent period.|
|Operating income and expenses other than|||||
|||62,762,574.05|24,879,481.73||
|the aforesaid items|||||
|Other non-business income and expenditures|||||
||||854,210.29||
|other than the above|||||
||-178,668,186.37|||The departmentconfirms the deferredincome tax totaling193.4147 million yuanfor losses of previousyears in the currentperiod.|
|Less:Amount of influence of income tax||17,954,525.92|11,529,933.00||
|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 theCompany’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, thecompany’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 thecompany’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, withyears’ 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
In2017，The board of directors of the Company actively implemented all resolutions ofshareholders’ general meeting, duly performed itsduties，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 by100.13%; to achieve operating costs of 1.247 billion yuan to complete the target value of 1.250 billion yuan by99.76%; to achieve investment income of 448 million yuan to complete the target value of 444 million yuanby100.90%.
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, thecompany’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 thecompany’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, thecompany’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 ofGuang’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 vehicletraffic in 2017vehicles)|Increase/Decrease(%)|Toll income in 2017（RMB’0000）|Increase/Decrease(%)|
|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 ExpresswayGuangzhu Section|7,897.42|13.03%|129,093.29|11.38%|
|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 than10%; 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 between5%-10%; the growth rate of Guanghui Expressway is only2.15%; while the growth rate of Guangzhao Expressway,Kangda Expressway and Gangkang Expressway respectivelyfell14.51%,3.03% and8.33% 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 somevehicle’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||2016|||
||||||Increase /decrease|
||Amount|Proportion|Amount|Proportion||
|Total operating|3,089,055,399.21||2,825,049,808.36|||
|||100%||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||2016|||
||||||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 theCompany’s Business Income and Operating Profit with Profit over10%
√ 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 onyear’s scope of period-end.
□ Applicable√Not applicable
(3)Whether theCompany’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||2016|||
|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 theCompany’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 DevelopmentInput’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 by46.07%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 by55.51% year-onyear，Mainly due to the raised funds of RMB 1.65 billion in the previous period.
3.The Subtotal cash outflow for financing activities increased by53% year-onyear，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
|||
|-|-|
||2017|
|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 biologicalassets|823,038,155.84|
|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-termdeferred 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||40,681,197.01||||
|||0.56%||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||3,219,971.08||||
|||0.02%||0.02%|0.00%||
|estate|||||||
|Long-term equity|3,047,275,000.00||2,220,805,130.31||||
|||18.44%||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||149,244,110.30||||
|||2.15%||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 theCompany’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
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Source ofund||||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||||||Estimate||scheduled|Disclosu||
|Name|investme||investment|amount during the|invested as of||Progress||the end of|||Disclosure index（If any）|
|||investme||||||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||||||Self andBorrowing||||||Announcement of the 29th|
||||||||||||July||
||Self|Yes|Expressway|218,590,221.93|726,653,752.93||21.21%|0.00|0.00|No|||
|Sanbaoto Shuikou||||||||||||(Provisional) Meeting of|
||||||||||||17,2016||
|section Extension||||||||||||the seventh Board of|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|projecy||||||||||||Directors, Announcement|
|||||||||||||of External Investment|
|Huiyan Expressway||||||||||||Announcement of the 13th|
||||||||||||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
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||Initial investmentcost|||||Purchas||||||
|||||Mode of|||||Sale|||||
||||||Book value|||e|||Book value|||
|||Stock||accounti||Changes in fair|Cumulative fair||amount||||Sauce of|
|Security|Security||||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||||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|||517,560,876.80|||||||||Financial||
|c and||Everbrig||||||||||assets||
||601818|||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 ReportⅦ.Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable□ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over10% 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 holds100% 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 holds75% stake of Beijing-Zhuhai Guangzhu Section Expressway Co., Ltd, which is thecompany’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 and17.89% 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 a75% 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 of232.69%, 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 holds30% 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 or10.81% 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 ReportⅨ.Prospect for future development of the Company
1.Strategy of theCompany’s Development
In recent years, ourcountry’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 networkhasn’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 ourcountry’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, andwe’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 theM&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, andwe’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|||15||
|Reception agency amount|||22||
|Reception personal number|||0||
|Others|||0||
|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:RMBbank’s Middle rate quoted byPeople’s Bank of China on the first working day after 2015 annualshareholders’ 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:RMBbank’s Middle rate quoted byPeople’s Bank of China on the first working day after 2016 annualshareholders’ 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:RMBbank’s Middle rate quoted byPeople’s Bank of China on the first working day after 2017 annualshareholders’ 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 theCompany’s profit and the parentcompany’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)|0|
|Cash dividend for everty ten shares||
||5.06|
|(Yuan)(Tax-included)||
|Distribute additional (shares)for 10 shares|0|
|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||
||1|
|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 8th 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 thecompany’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 QualifiedAuditor’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||
||120|
|(RMB’0000)||
|Successive years of the domestic CPAs offering||
||7|
|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
InRMB’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 provisional announcement|Date of disclosingprovisional announcement|Description of the website fordisclosing provisionalannouncements|
|Announcement of Resolutions of the 8th (Provisional) Meeting ofthe Eighth Board of Directors|April 8,2017|www.cninfo.com.cn|
|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 existingemployees’ 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
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||64,037|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||||||0||||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||||||
|Yadong Fuxing Yalian Investment Co., Ltd.||Domestic non State-ownedLegal person|9.68%|202,429,149||202,429,149||||||
||||||||||Pledge|202,429,000||
|Tibet Yingyue Investment Management Co., Ltd.||Domestic non State-ownedLegal person|4.84%|101,214,574||101,214,574||||||
|Guangdong Expressway Co., Ltd.||State-owned legal person|2.53%|52,937,491||52,937,491||||||
|Guangfa Securities Co., Ltd.||Domestic non State-ownedLegal person|1.45%|30,364,372||30,364,372||||||
|Feng Wuchu||Domestic natural personshares|1.02%|21,417,956||||||||
|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|
|Feng Wuchu|21,417,956|||RMB Common shares||19,677,358|
|||||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 privateinvestment fund|7,255,301||||||
|||||RMB Common shares||7,255,301|
|GUOTAI JUNANSECURITIES(HONGKONG) LIMITED|7,157,194||||||
|||||Foreign shares placed in domestic exchange||7,157,194|
|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 controllernature：Local state owned assets management
Actual controllertype：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 over10% 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||||||
||||||2017|||||||
|Zeng|||||December 4,|||||||
||Director|In office|Male|47||July 21,2019||||||
|Zhijun|||||2017|||||||
||||||July 21,|||||||
|Du Jun|Director|In office|Male|52||July 21,2019||||||
||||||2016|||||||
|Zhuo|||||December 4,|||||||
||Director|In office|Male|46||July 21,2019||||||
|Weiheng|||||2017|||||||
||||||July 21,|||||||
|Cao Yu|Director|In office|Male|32||July 21,2019|150,000||||150,000|
||||||2016|||||||
|Huang|||||July 21,|||||||
||Director|In office|Male|42||July 21,2019||||||
|Hai|||||2016|||||||

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||2016|||||||
||director|||||||||||
||Independ|||||||||||
|Gu|||||July 21,|||||||
||ent|In office|Male|52||July 21,2019||||||
|Naikang|||||2016|||||||
||director|||||||||||
||Independ|||||||||||
|Bao|||||July 21,|||||||
||ent|In office|Male|39||July 21,2019||||||
|Fangzhou|||||2016|||||||
||director|||||||||||
||Independ|||||||||||
|Zhang|||||December 4,|||||||
||ent|In office|Male|52||July 21,2019||||||
|Hua|||||2017|||||||
||director|||||||||||
||Independ|||||||||||
|Liu|||||December 4,|||||||
||ent|In office|Male|52||July 21,2019||||||
|Zhonghua|||||2017|||||||
||director|||||||||||
||Chairman|||||||||||
||of the|||||||||||
||Superviso||Femal||July 21,|||||||
|Ling Ping||In office||54||July 21,2019||||||
||ry||e||2016|||||||
||Committe|||||||||||
||e|||||||||||
|Li|Superviso||Femal||July 21,|||||||
|||In office||46||July 21,2019||||||
|Haihong|r||e||2016|||||||
||||||September|||||||
||Superviso||Femal|||||||||
|Ke Lin||In office||48|15,|July 21,2019||||||
||r||e|||||||||
||||||2017|||||||
|Cao|Superviso||Femal||July 21,|||||||
|||In office||49||July 21,2019||||||
|Xiaoying|r||e||2016|||||||
||Superviso||Femal||July 21,|||||||
|Li Mei||In office||48||July 21,2019|123,205||||123,205|
||r||e||2016|||||||
||Deputy|||||||||||
||||Femal||July 21,|||||||
|Zuo Jiang|General|In office||45||July 21,2019||||||
||||e||2016|||||||
||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|||||2017|||||||
||Manager|||||||||||
||Secretary|||||||||||
||||Femal||July 21,|||||||
|He Bing|to the|In office||50||July 21,2019||||||
||||e||2016|||||||
||Board|||||||||||
||Secretary|||||||||||
|Yang|||||August 28,|||||||
||to the|In office|Male|48||July 21,2019||||||
|Hanming|||||2017|||||||
||Board|||||||||||
||Deputy|||||||||||
|Chen|||||July 21,|April 11,||||||
||General|Dimission|Male|39||||||||
|Wenmian|||||2016|2017||||||
||Manager|||||||||||
||Secretary|||||||||||
|Liu|||Femal||July 21,|July 19,||||||
||to the|Dimission||39||||||||
|Ziaomei|||e||2016|2017||||||
||Board|||||||||||
|Wu|Superviso||||July 21,|August 29,||||||
|||Dimission|Male|50||||||||
|Guangze|r||||2016|2017||||||
|Ye||||||September||||||
||||||July 21,|||||||
|Yongchen|Director|Dimission|Male|60||15,||||||
||||||2016|||||||
|g||||||2017||||||
||Independ|||||||||||
|Peng|||||July 21,|December 4,||||||
||ent|Dimission|Male|65||||||||
|Xiaolei|||||2016|2017||||||
||director|||||||||||
||Independ|||||||||||
|Tang|||||July 21,|December 4,||||||
||ent|Dimission|Male|57||||||||
|Qingquan|||||2016|2017||||||
||director|||||||||||
|||||||November||||||
|Liu|||||July 21,|||||||
||Director|Dimission|Male|45||17,||||||
|Weimin|||||2016|||||||
|||||||2017||||||
||head of|||||||||||
|||||||December||||||
|Peng|the||Femal||July 21,|||||||
|||Dimission||55||25,||||||
|Xiaofang|internal||e||2016|||||||
|||||||2017||||||
||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. ZhengRenfa，He serves as Director, Master Degree,Senior economic engineer. From December 2005 toJanuary2013，He serves as Deputy Minister of Investment Management Department of Guangdong CommunicationGroup，Since January2013，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 GuangzhouDe’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||2005|||
|||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 provisionalshareholders’ 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
InRMB’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)|102|
|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||
||98|
|subsidiaries (person)||
|Professional||
|Category|Number of persons（person）|
|Management personnel|431|
|Toll collectors|1,340|
|Road service personnedl|119|
|Logistical personnedl|301|
|Total|2,191|
|Education||
|Category|Number of persons（person）|
|Holders of master’s degree or obove|35|
|Graduates of regular university|383|
|Graduates of junior colleges|1,474|
|Other|299|
|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<companylaw>,< the SecuritiesLaw>,< Code of Corporate Governance for Listed Companies inChina>,<Stock ListingRules> etc. and kept on improving corporate governance structures, improving normative operation level. Company had stipulated rules such as<articles ofassociation>, 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”, theshareholder’s meeting of our bank effectively performed the functions. The board of directors is to be responsible for theshareholder’s meeting, to take the ultimate responsibility for thebank’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 accountingdepartment，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 ExtraordinaryShareholders’ 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
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|-|-|-|-|-|-|
||||||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 andshareholders’ 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|4|
|Gu Naikang|10|2|8|0|0|No|4|
|Bao Fangzhou|10|2|8|0|0|No|4|
|Liu Zhonghua|1|0|1|0|0|No|1|
|Zhang Hua|1|0|1|0|0|No|1|
|Tang Qingquan|9|2|7|0|0|No|3|
|Peng Xiaolei|9|2|7|0|0|No|3|

 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 independentdirector’s advice to the Company been accepted
√Yes□No
Explanation on acceptance of or failure to accept an independentdirector’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||||
|||0||
|reporting（a）||||
|Number of major defects in non financial||||
|||0||
|reporting (a)||||
|Number of important defects in financial||||
|||0||
|reporting（a）||||
|Number of important defects in non||||
|||0||
|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 qualifiedauditor’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 theShareholders’ 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
Preparedby:：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 ofaccounting：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 ofaccounting：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 ofaccounting：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 ofaccounting：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 ofaccounting：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 ofaccounting：Fang Zhi
Accounting Dept Leader: Zhou Fang
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report 7. Consolidated Statement on Change inOwners’ Equity
Amount in this period
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount in this period|||||||||||||
||Owner’s equity Attributable to the Parent Company|||||||||||||
|||Other Equity||||||||||||
|||instrument||||||||||Minor||
|Items||||||Less:|Other|Speciali|||||Total of owners’|
||||Sustai|||||||Common riskprovision||shareholders’equity||
||Share Capital|prefer|||Capital reserves|Shares|Comprehensive|zed|Surplus reserves||Attributable profit||equity|
|||redstock|nabledebt|Other||in stock|Income|reserve||||||
|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||||||Less:|Other|Speciali|||||Total of owners’|
||||Sustai|||||||Common riskprovision||shareholders’equity||
||Share Capital|prefer|||Capital reserves|Shares|Comprehensive|zed|Surplus reserves||Attributable profit||equity|
|||redstock|nabledebt|Other||in stock|Income|reserve||||||
|（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||||||Less:|Other|Speciali|||||Total of owners’|
||||Sustai|||||||Common riskprovision||shareholders’equity||
||Share Capital|prefer|||Capital reserves|Shares|Comprehensive|zed|Surplus reserves||Attributable profit||equity|
|||redstock|nabledebt|Other||in stock|Income|reserve||||||
|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||||||Less:|Other|Speciali|||||Total of owners’|
||||Sustai|||||||Common riskprovision||shareholders’equity||
||Share Capital|prefer|||Capital reserves|Shares|Comprehensive|zed|Surplus reserves||Attributable profit||equity|
|||redstock|nabledebt|Other||in stock|Income|reserve||||||
|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|||||||||||||9,454,110,681.45|
||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||
|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|prefer|||Capital reserves|Shares|Comprehensive|zed|Surplus reserves||Attributable profit||equity|
||||Sustai|||||||provisio||equity||
|||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|prefer|||Capital reserves|Shares|Comprehensive|zed|Surplus reserves||Attributable profit||equity|
||||Sustai|||||||provisio||equity||
|||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|prefer|||Capital reserves|Shares|Comprehensive|zed|Surplus reserves||Attributable profit||equity|
||||Sustai|||||||provisio||equity||
|||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|prefer|||Capital reserves|Shares|Comprehensive|zed|Surplus reserves||Attributable profit||equity|
||||Sustai|||||||provisio||equity||
|||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 ofaccounting：Fang Zhi Accounting Dept Leader: Zhou Fang 8.Statement of change inowner’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|||||||||||8,531,884,836.71|
||2,090,806,126.00||||2,921,957,981.38||327,263,824.17||528,976,846.38|2,662,880,058.78||
|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 ofaccounting：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 thePeople’ 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 1999Shareholders’ 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 thePeople’ 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 ofJu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 annualshareholders’ 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 theCompany’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 the25% 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 the100% 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，Registrationcapital:RMB2,090,806,126，Legalrepresentative：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. Businessscope：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）Thecompany’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 ofowner’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 inowner’s equity will be counteracted at the preparation of the consolidated financial statements.
The portion of asubsidiary’s equity that is not attributable to the parent is treated as minorityshareholders’ interest and presented as “minority interest” in the consolidated balance sheet withinowners’ equity. The portion of net profits or losses of subsidiaries for the period attributable to 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 minorityshareholders’ portion of the opening balance ofowners’ 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 theowners’ 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 orabove.， 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 Report⑶When 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 byPeople’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 byPeople’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 theowner’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 theowner’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 asowners’ 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 asowners’ 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 activemarket（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 ofowner’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 Creditrisk：The accounts receivable whose single amount is over RMB 1 million& accounts for over10% 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 ingroup：
□ applicable√not applicable
Accounts on other basis ingroup：
√ 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: Thecompany’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 ofInventories’ 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 ofshareholders’ meeting or relevant authority agency if theshareholder’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 theowner’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 aresatisfied：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|T he 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, buthasn’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 thecompany’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 recognizedshouldn’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 foremployees’ 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 companycan’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
Thecompany’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
Thecompany’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 theowner’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 Report⑵Change of accounting estimations
□ Applicable√ Not applicable
VI. Taxation
1. Major category of taxes and tax rates
|||||||
|-|-|-|-|-|-|
||Tax category||Tax basis||Tax rate|
|VAT|||Toll income, Rent income and Labour|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
|||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Classification|||Amount in year-end|||||||||Amount in year- begin||||||||
||||Book Balance||||Bad debt provision|||Book value||Book Balance||||Bad debt provision|||Book value|
|||Amount|Amount||Proportio|Amount|Amount||Proportio||Amount|Amount||Proportio|Amount|Amount||Proportion(||
||||||n(%)||||n(%)|||||n(%)||||%)||
||Account receivable with|65,760,470.23||70.64%||||||65,760,470.23|32,054,176.60||78.46%||||||32,054,176.60|
||single major amount and|||||||||||||||||||
||withdrawal bad debt provision|||||||||||||||||||
||for single item|||||||||||||||||||
||Account receivable|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|
||withdrawalbad debt|||||||||||||||||||
||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
|||||||||
|-|-|-|-|-|-|-|-|
|Receivable accounts（Unit）|||Amount in year-end|||||
||||Receivable|Bad debt|Proportion||Reason|
||||accounts|provision||||
|Guangdong Union Electronic ServicesCo., Ltd.||45,447,260.32|||||Been recovered after the period|
|Shandong Boan IntelligentTechnology Co., Ltd.||10,887,387.60|||||Been recovered after the period|
|Guangdong Humen Bridge Co., Ltd.||9,425,822.31|||||Been recovered after the period|
||Total|65,760,470.23||||--|--|

Account receivable on which bad debt provisions are provided on age basis in thegroup：
√ Applicable□Not applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
|Aging|||Balance in year-end||||
|||Receivable accounts||Bad debt provision||Withdrawalproportion|
||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%|

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 ServicesCo., Ltd.|45,447,260.32|Within 1 year|48.81||
|Shandong Boan Intelligent TechnologyCo., Ltd.|10,887,387.60|Within 1 year|11.70||
|Guangdong Humen Bridge Co., Ltd.|9,425,822.31|Within 1 year|10.13||
|Guangdong Jingzhu ExpresswayGuangzhu North Section Co., Ltd.|4,821,700.01|Within 1 year|5.18||
|Guangdong Guanghui Expressway Co.,Ltd.|4,025,633.55|Within 1 year|4.32||
|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
|||||||||
|-|-|-|-|-|-|-|-|
|Age|||Balance in year-end|||Balance in year-begin||
||||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 ComputerTechnology Co., Ltd.|910,259.37|Within 1 year|20.45|
|Guangzhou Haohang ElectronicTechnology Co., Ltd.|851,784.42|Within 1 year|19.13|
|Guangdong Litong Real estateInvestment Co., Ltd.|700,087.62|Within 1 year|15.73|
|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
|||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Type|||Balance in year-end|||||||||Balance in year-begin||||||||
||||Book Balance||||Bad debt provision|||Book value||Book Balance||||Bad debt provision|||Book value|
|||Amount|Amount||Proporti|Amount|Amount||Proportion||Amount|Amount||Proportio|Amount|Amount||Proportio||
||||||on(%)||||(%)|||||n(%)||||n(%)||
||Other Account receivable|53,351,565.01||75.72%||53,351,565.01||100.00%|||53,351,565.01||66.56%||53,351,565.01||100.00%|||
||with single major amount|||||||||||||||||||
||and withdrawal bad debt|||||||||||||||||||
||provision for single item|||||||||||||||||||
||Other Account receivable|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|
||withdrawal bad debt|||||||||||||||||||
||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
|||||||||
|-|-|-|-|-|-|-|-|
|Other receivabl（e Unit）||Balance in year-end||||||
|||Other receivable||Bad debt provision||Proportion|Reason|
|Kunlun SercuritiesCo.,Ltd.|49,343,885.10||49,343,885.10||100.00%||The parent company once paid RMB 33,683,774.79 into Kunlun Securities Co., Ltd,|
||||||||Guangdong Expressway technology investment Co., Ltd once paid RMB 18,000,000.00 into|
||||||||Kunlun Securities Co., Ltd. Qinghai Province Xining City’s intermediate people’s court made|
||||||||a adjudication under law declared that Kunlun Securities Co., Ltd went bankrupt and repaid|
||||||||debt in Novemeber 11, 2006. On March 2007, The Company and Guangdong Expressway|
||||||||Technology Investment Co., Ltd had switched the money that paid into Kunlun Secutities|
||||||||Co., Ltd to other account receivable, and follow the careful principle to doubtful debts|
||||||||provision. The RMB 710,349.92 Credit was Recovered in 2008, and the provision for bad|
||||||||debt is deducted, The RMB977,527.77 credit was recovered in 2011, and the provision for|
||||||||had debt is deducted.The RMB 652,012.00 Cridit was recovered in 2014, and the provision|
||||||||for had debt is deducted.|
|Beijing Gelin EnzeOrganic Fertilizer Co.,Ltd.|4,007,679.91||4,007,679.91||100.00%||Guangdong Expresswaytechnology investment Co., Ltd .should charge Beijing Gelin|
||||||||Enze Organic Fertilizer Co., Ltd.for RMB12,220,079.91. Eight millions of it was entrust loan,|
||||||||three million was temporary borrowing RMB 12,400.00 is the commission loan interest, the|
||||||||rest of it was advance money for another, Beijing Gelin Enze Organic Fertilizer Co., Ltd’s|
||||||||operating status was had and had already ceased producing, Accordingly, the controlling|

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
||||||||
|-|-|-|-|-|-|-|
|Aging|||Amount in year-end||||
|||Other receivable||Bad debt provision||Withdrawal|
|||||||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
||||||||
|-|-|-|-|-|-|-|
|Name||Amount in year-end|||||
||Other accountreceivable|Other account|Bad debtprovision|Withdrawal|Reason|Reason|
|||receivable||proportion|||
|||||（%）|||
|Guangdong Litong Real estate InvestmentCo., Ltd|1,505,864.00||||Deposit||
|Guangdong Guanghui Expressway Co., Ltd|1,413,708.90||||Deposit||
|uangdong Expressway Co., Ltd.|588,877.38||||Administrationexpenses,Qualityguarantees fund||
|Zhaoqing Yuezhao Highway Co., Ltd.|415,614.00||||Administrationexpenses,Quality||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
||||||||
|-|-|-|-|-|-|-|
|Name||Amount in year-end|||||
||Other accountreceivable|Other account|Bad debtprovision|Withdrawal|Reason|Reason|
|||receivable||proportion|||
|||||（%）|||
||||||guarantees fund||
|Guangdong Xinyue Traffic InvestmentCo.,Ltd.|415,442.60||||Quality guarantees||
|Beijing Shibang Weilishi PropertyManagement Services Co., Ltd.|393,331.00||||Deposit||
|Guangdong Guangzhu West LineExpressway Co., Ltd.|185,366.60||||Quality guarantees||
|Guangshen Zhu Expressway Co., Ltd.|185,014.40||||Quality guarantees||
|CRCC Harbour & Channel EngineeringBureau Group Co., Ltd.|165,169.25||||Quality guarantees||
|Beijing Gongke Feida Transport EngineeringDevelopment Co., Ltd.|115,475.20||||Quality guarantees||
|Sichuan Intelligent Trafficv systemsManagement Co., Ltd.|100,000.00||||Bid deposit||
|Guangdong Feida Transportation EngineeringDevelopment Co., Ltd.|90,920.75||||Quality guarantees||
|Guangdong Highway Construction Co., Ltd.|76,563.00||||Quality guarantees||
|Chengdu Shuguang Fibre-optical MetworkCo., ltd.|59,758.09||||Quality guarantees||
|Guangdong Jingzhu Expressway GuangzhuNorth Section Co., Ltd.|55,694.00||||Quality guarantees||
|Guangdong Boda Expressway Co., Ltd.|51,808.80||||Quality guarantees||
|Guangdong West Coastal Expressway ZhuhaiSection Co., Ltd.|40,967.05||||Quality guarantees||
|Guangzhou Chengcheng Auto LeasingService Co., ltd.|30,000.00||||Deposit||
|Guangdong Jiangzhong Expressway Co., Ltd.|28,120.00||||Quality guarantees||
|Guangzhou Tuzhiling Computer TechnologyCo., Ltd.|25,438.80||||Quality guarantees||
|Guangdong Road & Bridge ConstructionDevelopment Co., Ltd.|24,972.70||||Quality guarantees||
|Guangzhou Express TransportationConstruction Co., Ltd.|22,094.40||||Quality guarantees||
|Guangzhou Beihuan Expressway Co., Ltd.|16,590.40||||Quality guarantees||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
||||||||
|-|-|-|-|-|-|-|
|Name||Amount in year-end|||||
||Other accountreceivable|Other account|Bad debtprovision|Withdrawal|Reason|Reason|
|||receivable||proportion|||
|||||（%）|||
|Guangzhou Huanan Luqiao Industry Co., Ltd.|16,000.00||||Quality guarantees||
|Guangzhou Saitisi ElectromechanicalInstallation Engineering Co., Ltd.|15,875.00||||Quality guarantees||
|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 InformationTechnology Co., Ltd.|10,950.00||||Quality guarantees||
|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 EnvironmentalEngineering Co., Ltd.|10,000.00||||Deposit||
|Guangdong Gaoda Property DevelopmentCo.,ltd.|9,940.70||||Deposit||
|Guangdong Jiangzhao ExpresswayManagement Center|9,098.40||||Quality guarantees||
|Guangdong Zhonglin Electrical InstallationEngineering Co., Ltd.|8,820.00||||Quality guaranteesfund||
|Guangdong Maozhan Expressway Co., Ltd.|8,747.20||||Quality guaranteesfund||
|Guangdong Shanfen Expressway Co., Ltd.|8,028.80||||Quality guaranteesfund||
|Guangdong Baomao Expressway Co., Ltd.|7,633.60||||Quality guaranteesfund||
|Guangdong Yuedong Expressway IndustryDevelopment Co., Ltd.|7,367.20||||Quality guaranteesfund||
|Guangdong Guangle Expressway Co., Ltd.|7,248.00||||Quality guaranteesfund||
|Foshan Guangsan Expressway Co., Ltd.|6,492.00||||Quality guaranteesfund||
|Guangdong Yangmao Expressway Co., Ltd.|6,004.80||||Quality guaranteesfund||
|Guangdong West Coastal Expressway Xinhui|5,753.20||||Quality guarantees||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
||||||||
|-|-|-|-|-|-|-|
|Name||Amount in year-end|||||
||Other accountreceivable|Other account|Bad debtprovision|Withdrawal|Reason|Reason|
|||receivable||proportion|||
|||||（%）|||
|Section Co., Ltd.|||||fund||
|Huishen(Yantian)Expressway Huizhou Co.,Ltd.|5,600.00||||Quality guaranteesfund||
|Guangdong Litong Technology InvestmentCo., Ltd.|5,273.00||||Quality guaranteesfund||
|Guangdong Maoming Nanda Electric PowerConstruction Co., ltd. Huizhou Branch|5,000.00||||Deposit||
|Guangdong Zhaoyang Expressway Co., Ltd.|4,304.00||||Quality guaranteesfund||
|Guangdong Yueyun Traffic Co., Ltd.|3,032.00||||Quality guaranteesfund||
|Jiangmen Jianghe Expressway Co., Ltd.|2,539.20||||Quality guaranteesfund||
|Guangzhou Guangcong Expressway Co., Ltd.|2,027.20||||Quality guaranteesfund||
|Foshan Nanhai Jiasheng Drinking WaterChain|1,800.00||||Deposit||
|Shanxi Sihe Traffic Engineering Co., Ltd.|1,600.00||||Quality guaranteesfund||
|Beijing Zhonghe Tianxia ManagementConsultation Co., Ltd.|1,000.00||||Guarantees fund||
|Guangdong Weishi Highway EngineeringCo., Ltd.|146.30||||Quality guaranteesfund||
|Total|6,248,654.22||||||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
|||
|-|-|
|Items|Amount|
|The actual write-off other accounts receivable|83,597.01|

 Including major written-offf other receivable
Nil
(4) Other accounts receivable classified by the nature of accounts
In RMB
||||||
|-|-|-|-|-|
|Nature||Closing book balance||Opening book balance|
|Securities trading settlement funds balan|49,343,885.10||49,343,885.10||
|ce|||||
|Guarantee deposit||5,973,582.34||4,641,268.72|
|Current account of gelin enze||4,007,679.91||4,007,679.91|
|Pretty cash||3,950,100.00||3,850,100.00|
|Advertising and service fee||2,187,578.36||2,818,648.03|
|Other||4,999,333.96||15,497,174.70|
|Total|70,462,159.67||80,158,756.46||

 (5) Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Name||Nature||Closingbalance||Aging||Proportion of|Closingbalance of baddebt provision||
|||||||||the total year|||
|||||||||end balance of|||
|||||||||the accounts|||
|||||||||receivable(%)|||
|Kunlun Securities Co.,Ltd|||Securities trading sett|49,343,885.10||Over 5 years|70.03%||49,343,885.10||
||||lement funds||||||||
||Beijing Gelin Enze||Current account||4,007,679.91|Over 5 years||5.69%||4,007,679.91|
||Guangdong Litong Real estate|Guarantees fund||1,505,864.00||Within 5 years|2.14%||||
||Investment Co., ltd.||||||||||
||Heshan Communication Real|Current account||1,470,000.00||Over 5 years|2.09%||1,470,000.00||
||estate Development Company||||||||||
||Guangdong Guanghui|Guarantees fund||1,463,995.66||Within 3 years, Over 5years|2.08%||||
||Expressway Co., Ltd.||||||||||
|||||||--|||||
||Total||--||57,791,424.67|--||82.03%||54,821,565.01|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report (6) Accounts receivable involved with government subsidies
Nil
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets Nil
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement
of other accounts receivable
Nil
Other notes
Nil
5.Inventory
Whether the Company needs to comply with the disclosure requirements for specific industrie
No
（1）Inventory types
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Items|||Year-end balance||||Year-beginning balance||||
|||BookBalance||Provision|Bookvalue|Book Balance||Provision|Book value||
|||||for bad||||for bad|||
|||||debts||||debts|||
||Inventory||||||323,888.89|||323,888.89|
||Total||||||323,888.89||323,888.89||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report Nil
6.Non-current asset due within 1 year
In RMB
|||||||
|-|-|-|-|-|-|
|Items|||Year-end balance||Year-beginning balance|
|A|dvance business tax||55,669.14||55,719.14|
||Total|55,669.14||55,719.14||

 Other notes
7.Other current assets
In RMB
|||||||
|-|-|-|-|-|-|
|Items|||Year-end balance||Year-beginning balance|
||Input tax to be deducted||76,576.08|||
||Total|76,576.08||0.00||

 Other notes
Nil
8. Available-for-sale financial assets
(1) List of available-for-sale financial assets
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Items|||Amount in year-end||||||Amount in year- begin|||||
|||Book balance|||Bad debt|Book value||Book balance|||Bad debt|Book value||
||||||provision||||||provision|||
||Available-for-sale equity|1,788,150,824.93||36,793,200.00||1,751,357,624.93||1,755,215,132.77||36,793,200.00||1,718,421,932.77||
||Instruments|||||||||||||
||Measured by fair value||952,782,523.20||||952,782,523.20||919,846,831.04||||919,846,831.04|
||Measured by cost||835,368,301.73||36,793,200.00||798,575,101.73||835,368,301.73||36,793,200.00||798,575,101.73|
||Total||1,788,150,824.93||36,793,200.00|1,751,357,624.93|||1,755,215,132.77||36,793,200.00|1,718,421,932.77||

 (2) Available-for-sale financial assets measured by fair value at the period-end
In RMB
||||||
|-|-|-|-|-|
|Type|i|Available-for-sale|Available-for-saleDebt instruments|Total|
|||equity|||
|||nstruments|||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
||||||
|-|-|-|-|-|
|Cost of the equity|517,560,876.80||517,560,876.80||
|instruments/amortized|||||
|cost of the liabilities|||||
|instruments|||||
|Fair value||952,782,523.20||952,782,523.20|
|Changed amount of the|435,221,646.40||435,221,646.40||
|fair value accumulatively|||||
|included in other|||||
|comprehensive income|||||

As at the end of the period, the company holds shares 235,254,944 shares of China Everbright Ban k According to the closing price of December 31, 2017 of RMB 4.05, the final calculation of fair
value was RMB952,782,523.20.
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report (3) Available-for-sale financial assets measured by cost at the period-end
In RMB
|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Investee|||Book balance||||||Impairment provision||||||Sharehold|Cash bonusof thereportingperiod||
|||Period-begin||Increase|Decrease|Period -end||Period-begin||Increase|Decrease|Period -end|||ing|||
||||||||||||||||proportio|||
||||||||||||||||n among|||
||||||||||||||||the|||
||||||||||||||||investees|||
||Guangdong Radio and Television|50,000,000.00||||50,000,000.00||||||||2.97%||1,272,937.23||
||Networks investment No.1 Limited|||||||||||||||||
||partnership enterprise|||||||||||||||||
||Kunlun Securities Co., Ltd.（Notes1）||30,000,000.00||||30,000,000.00||30,000,000.00||||30,000,000.00||5.74%|||
||Huaxia Securities Co., Ltd.（Notes 2）|5,400,000.00||||5,400,000.00||5,400,000.00||||5,400,000.00||0.27%||||
||Huazheng Assets Management|1,620,000.00||||1,620,000.00||1,393,200.00||||1,393,200.00||0.54%||||
||Co. Ltd.（Notes3）|||||||||||||||||
||Guangdong Guangle Expressway Co.,|748,348,301.73||||748,348,301.73||||||||9.00%||||
||Ltd.|||||||||||||||||
||Total||835,368,301.73||||835,368,301.73||36,793,200.00||||36,793,200.00||--||1,272,937.23|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report Notes 3: According to De Wei Ping Gu Zi 2005 No. 88 Appraisal Report issued by Beijing Dewei Appraisal Co., Ltd. As the June 30, 2005, the amount of net assets of Huazheng Asset Management Co., Ltd. in book was RMB 279.132 million and the appraised value was RMB - 2299.5486 million ,On October 14, 2005, Jianyin CITIC Asset Management Co., Ltd. issued the Letter of Soliciting Opinions on Equity Assignment to the Company. Jianyin CITIC Asset Management Co., Ltd. was willing to pay the price of not more than RMB 42 million to acquire100% equity of Huazheng Asset Management Co., Ltd. and solicited the Company's opinions. The Company replied on December 5, 2005, abandoning the preemptive right under the same conditions. The Company made provision of RMB 1.3932 million for impairment in respect of this long-term equity investm ent of RMB 1.62 million.
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report (4) Changes of the impairment of the available-for-sale financial assets during the reporting period In RMB
|||||||
|-|-|-|-|-|-|
|Type|||Available-for-sale|Available-for-sale|Total|
||||Equity instruments|Debt instruments||
||Balance of the withdrawn|36,793,200.00|||36,793,200.00|
||impairment at the|||||
||period-begin|||||
||Balance of the withdrawn|36,793,200.00|||36,793,200.00|
||impairment at the|||||
||period-end|||||

⑸Relevant description of the end of the fair value of the equity instruments at the end of a serious decline in fair value or non temporary decline but not related to impairment provision
Nil
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report 9. Long-term equity investment
In RMB
||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Investees||Opening balance|||Increase/decrease|||||||||||Closing balance||Closingbalanceofimpairmentprovision|
|||||Additionalinvestment||Negativeinvestment||Investment|Adjustmentof othercomprehensive income|Changes ofother equity||Cash bonus orprofitsannounced toissue||Withdrawal ofimpairmentprovision|Other||||
|||||||||profit and loss|||||||||||
|||||||||recognized|||||||||||
|||||||||under the|||||||||||
|||||||||equity method|||||||||||
||I. Joint venture||||||||||||||||||
||Guangdong Guanghui|963,806,710.36|||||282,006,496.89|||1,200,000.00||297,106,373.29||||949,906,833.96|||
||Expressway Co., Ltd.||||||||||||||||||
||Zhaoqing Yuezhao Highway|298,347,974.37|||||48,730,821.40|||||55,172,678.59||||291,906,117.18|||
||Co., Ltd.||||||||||||||||||
||Subtotal||1,262,154,684.73|||||330,737,318.29|||1,200,000.00||352,279,051.88||||1,241,812,951.14||
||2. Affiliated Company||||||||||||||||||
||Shenzhen Huiyan Expressway|162,435,484.69|||||33,761,713.52|||||||||196,197,198.21|||
||Co., Ltd.||||||||||||||||||
||Guangdong Jiangzhong|173,505,923.37|||||11,038,071.84|||||11,041,691.10||||173,502,304.11|||
||Expressway Co., Ltd.||||||||||||||||||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Ganzhou Kangda Expressway Co.,|204,137,265.86|||25,170,250.23|||461,406.77||21,000,000.00||208,768,922.86||
|Ltd.|||||||||||||
|Ganzhou Gankang Expressway|210,007,188.89|||3,997,514.46|||||9,600,000.00||204,404,703.35||
|Co., Ltd.|||||||||||||
|Guangdong Yueke Technology|208,564,582.77|||13,042,538.35|||||6,058,788.22||215,548,332.90||
|Petty Loan Co., Ltd.|||||||||||||
|Guoyuan Sectricities Co., Ltd.|||799,999,959.30||6,193,038.76|847,589.37||||||807,040,587.43|
|Subtotal||958,650,445.58|799,999,959.30||93,203,127.16|847,589.37||461,406.77||47,700,479.32||1,805,462,048.86|
|Total||2,220,805,130.31|799,999,959.30||423,940,445.45|847,589.37||1,661,406.77||399,979,531.20||3,047,275,000.00|

 Other notes
Nil
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report 10. Investment property
(1) Investment property adopted the cost measurement mode
√ Applicable□Not applicable
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Items||Houses and buildings||Land use right|Construction in|Total||
||||||progress|||
||I.Original value|||||||
||1.Opening balance||12,664,698.25||||12,664,698.25|
||2.Increased amount of|||||||
||the period|||||||
||（1）Outsourcing|||||||
||(2)Inventory, Fixed|||||||
||assets and|||||||
||Construction project|||||||
||into|||||||
||(3)Enterprise|||||||
||consolidation|||||||
||3.Decreased amount of|||||||
||the period|||||||
||（1）Disposal|||||||
||（2）Other Out|||||||
||4.Closing balance||12,664,698.25||||12,664,698.25|
||II.Accumulated|||||||
||depreciation|||||||
||accumulated|||||||
||amortization|||||||
||1.Opening balance||9,444,727.17||||9,444,727.17|
||2.Increased amount of|464,213.40||||464,213.40||
||the period|||||||
||(1)Withdrawal or||464,213.40||||464,213.40|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|Items||Houses and buildings||Land use right|Construction in|Total||
||||||progress|||
||amortization|||||||
||3.Decreased amount of|||||||
||the period|||||||
||（1）Disposal|||||||
||（2）Other Out|||||||
||4.Closing balance||9,908,940.57||||9,908,940.57|
||III. Impairment|||||||
||provision|||||||
||1.Opening balance|||||||
||2.Increased amount of|||||||
||the period|||||||
||（1）Withdrawal|||||||
||3.Decreased|||||||
||amount of the period|||||||
||（1）Disposal|||||||
||（2）Other Out|||||||
||4.Closing balance|||||||
||IV. Book value|||||||
||1.Closing book value||2,755,757.68|||2,755,757.68||
||2.Opening book||3,219,971.08|||3,219,971.08||

 (2) Investment property adopted fair value measurement mode
□Applicable√ Not applicable
(3) Details of investment property failed to accomplish certification of property
In RMB
||||
|-|-|-|
|Items|Book balue|Reason|
|Transportation and other ancillary|1,735,394.10|Transportation and other ancillary|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
|||
|-|-|
|facilities|facilities, Not accreditation|

Other notes Nil
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report 11. Fixed assets
(1) List of fixed assets
In RMB
|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Items||GuangfoExpressway||Fokai Expressway|||Jingzhu|House andbuildings||Machineryequipment||Transportationequipment|||Electricity|Total||
||||||||Expressway||||||||equipment and|||
||||||||Guangzhu section||||||||other|||
||I. Original price|||||||||||||||||
||1.Opening balance||1,460,270,190.66||8,955,187,667.08||5,120,405,509.44||350,137,770.35||126,710,600.83||64,871,708.40||613,998,510.08||16,691,581,956.84|
||2.Increased amount of|||||10,168,899.09||1,726,377.11||||1,189,556.00||32,660,407.59||45,745,239.79||
||the period|||||||||||||||||
||（1）Purchase||||||||||||1,189,556.00||11,705,344.42||12,894,900.42|
||（2）Transfer of project|||||10,168,899.09||1,726,377.11||||||20,955,063.17||32,850,339.37||
||under construction|||||||||||||||||
||(3)Increased of Enterprise|||||||||||||||||
||consolidation|||||||||||||||||
||3.Decreased amount of|||7,891,796.28||||||224,520.00||5,531,966.62||6,128,417.36||19,776,700.26||
||the period|||||||||||||||||
||（1）Disposal or scrap||||7,891,796.28||||||224,520.00||5,531,966.62||6,128,417.36||19,776,700.26|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Items||GuangfoExpressway||Fokai Expressway|||Jingzhu|House andbuildings||Machineryequipment||Transportationequipment|||Electricity|Total||
||||||||Expressway||||||||equipment and|||
||||||||Guangzhu section||||||||other|||
||4.Closing balance||1,460,270,190.66||8,947,295,870.80||5,130,574,408.53||351,864,147.46||126,486,080.83||60,529,297.78||640,530,500.31||16,717,550,496.37|
||II. Accumulated|||||||||||||||||
||depreciation|||||||||||||||||
||1.Opening balance||1,438,198,286.26||2,961,877,190.13||2,310,553,044.84||207,381,103.40||48,853,742.40||49,709,577.10||389,185,709.94||7,405,758,654.07|
||2.Increased amount of|22,071,904.40||484,195,098.09||243,167,170.92||16,910,391.70||11,732,609.40||3,359,826.64||41,392,331.20||822,829,332.35||
||the period|||||||||||||||||
||（1）Withdrawal||22,071,904.40||484,195,098.09||243,167,170.92||16,910,391.70||11,732,609.40||3,359,826.64||41,392,331.20||822,829,332.35|
||3.Decreased amount of the|||5,531,877.31||||||202,068.00||5,041,593.75||5,696,841.70||16,472,380.76||
||period|||||||||||||||||
||（1）Disposal or scrap||||5,531,877.31||||||202,068.00||5,041,593.75||5,696,841.70||16,472,380.76|
||4.Closing balance||1,460,270,190.66||3,440,540,410.91||2,553,720,215.76||224,291,495.10||60,384,283.80||48,027,809.99||424,881,199.44||8,212,115,605.66|
||III. Impairment provision|||||||||||||||||
||1.Opening balance|||||||||||||||||
||2.Increased amount ofthe|||||||||||||||||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Items||GuangfoExpressway|Fokai Expressway|||Jingzhu|House andbuildings||Machineryequipment||Transportationequipment|||Electricity|Total||
|||||||Expressway||||||||equipment and|||
|||||||Guangzhu section||||||||other|||
||period||||||||||||||||
||（1）Withdrawal||||||||||||||||
||3.Decreased amount of the||||||||||||||||
||period||||||||||||||||
||（1）Disposal or scrap||||||||||||||||
||4.Closing balance||||||||||||||||
||IV. Book value||||||||||||||||
||1.Closing book value|||5,506,755,459.89||2,576,854,192.77||127,572,652.36||66,101,797.03||12,501,487.79||215,649,300.87||8,505,434,890.71|
||2.Opening book|22,071,904.40|5,993,310,476.95||2,809,852,464.60||142,756,666.95||77,856,858.43||15,162,131.30||224,812,800.14||9,285,823,302.77||
||value||||||||||||||||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report⑵Temporarily idle fixed assets Nil
⑶Fixed assets through financial leasing Nil
⑷Tenancy of fixed assets through operating lease Nil
⑸Details of fixed assets failed to accomplish certification of property
In RMB
||||||
|-|-|-|-|-|
||Items||Book value|Reason|
|House and buildings||94,268,585.08||Transportation and other ancillary facilities,|
|||||Not accreditation|
|House and buildings||759,354.12||Due to absorption, merger and|
|||||reorganization, the formalities for change|
|||||are in progress|

Other notes Nil
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report 12. Project under construction
（1）Project under construction
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Items|||Year-end balance|||||Year-beginning balance||||
|||Book balance|Book balance|Provision for|Book value|Book value|Book balance|Book balance|Provision for|Book value|Book value|
|||||devaluation|||||devaluation|||
||Sanbao To Shuikou|347,299,458.95|||347,299,458.95||128,709,237.02|||128,709,237.02||
||Expansion project|||||||||||
||Odd project||8,763,197.00|||8,763,197.00||20,534,873.28|||20,534,873.28|
||Total||356,062,655.95||356,062,655.95|||149,244,110.30||149,244,110.30||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report (2) Changes of significant construction in progress
In RMB
||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Name of project||Budget||Openingbalance||Increase||Transferred tofixed assets||Otherdecrease||End balance||Proportion %||Projectprocess||Capitalization ofinterest|||Includin|Capitalization ofinterestrate (%)|Sourceoffunding||
||||||||||||||||||||||g:||||
||||||||||||||||||||||capitaliz||||
||||||||||||||||||||||ation of||||
||||||||||||||||||||||interest||||
||||||||||||||||||||||this||||
||||||||||||||||||||||period||||
||Sanbao To Shuikou|3,426,206,660.00||128,709,237.02||218,590,221.93||||||347,299,458.95||21.21%||21.21||5,934,771.97||5,808,337.50||4.41%|Other||
||Expansion project||||||||||||||||||||||||
||Odd project||||20,534,873.28||22,682,342.91||32,850,339.37||1,603,679.82||8,763,197.00|||||||||||Other|
||Total||3,426,206,660.00||149,244,110.30||241,272,564.84||32,850,339.37||1,603,679.82||356,062,655.95||--||--||5,934,771.97||5,808,337.50||||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report 13. Engineering material
In RMB
||||||
|-|-|-|-|-|
|Items||Balance in year-end||Balance in year-begin|
|Signpost||1,549,556.00||1,549,556.00|
|Total|1,549,556.00||1,549,556.00||

 Other notes
Nil
14. Intangible assets
(1) List of intangible assets
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Items||Land use right||Patent right|Non-patent|Software||Logo|Total||
||||||right||||||
||I. Original price||||||||||
||1.Opening balance||1,311,658.00||||23,183,107.63|||24,494,765.63|
||2.Increased amount of the|||||4,175,878.58|||4,175,878.58||
||period||||||||||
||(1) Purchase|||||4,175,878.58|||4,175,878.58||
||(2)Internal Development||||||||||
||(3)Increased of Enterprise||||||||||
||Combination||||||||||
||3.Decreased amount of the||||||||||
||period||||||||||
||（1）Disposal||||||||||
||4.Closing balance|1,311,658.00||||27,358,986.21|||28,670,644.21||
||II.Accumulated amortization||||||||||
||1.Opening balance||1,223,373.70||||17,133,097.03|||18,356,470.73|
||2.Increased amount of the|88,284.30||||3,129,454.01|||3,217,738.31||
||period||||||||||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Items||Land use right||Patent right|Non-patent|Software||Logo|Total||
||||||right||||||
||(1) Withdrawal||88,284.30||||3,129,454.01|||3,217,738.31|
||3.Decreased amount of the||||||||||
||period||||||||||
||（1）Disposal||||||||||
||4.Closing balance|1,311,658.00||||20,262,551.04|||21,574,209.04||
||III. Impairment provision||||||||||
||1.Opening balance||||||||||
||2.Increased amount of the||||||||||
||period||||||||||
||(1) Withdrawal||||||||||
||3.Decreased amount of the||||||||||
||period||||||||||
||（1）Disposal||||||||||
||4.Closing balance||||||||||
||IV. Book value||||||||||
||1.Closing book value||||||7,096,435.17|||7,096,435.17|
||2.Opening book value||88,284.30||||6,050,010.60|||6,138,294.90|

 The intangible assets by the end of the formation of the company's internal R& D accounted of
the proportion of the balance of intangible assets
⑵Details of Land use right failed to accomplish certification of property
Other notes :Nil
15. Long-term amortize expenses
In RMB
|||||||
|-|-|-|-|-|-|
|Items|Balance inyear-begin|Increase in thisperiod|Amortized|Other loss|Balance inyear-end|
||||expenses|||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
|||||||
|-|-|-|-|-|-|
|Renovation fee||1,559,874.44|1,559,874.44|||
|Property Insurance||204,091.63|111,322.80||92,768.83|
|Total|1,763,966.07||1,671,197.24|92,768.83||

Other notes
Nil
16. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
In RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Items|||Balance in year-end||||Balance in year-begin|||
||||Deductible|Deferred incometax assets||Deductibletemporary difference||Deferred incometax assets||
||||temporary|||||||
||||difference|||||||
||Asset impairmentprovision|||||3,000.00||750.00||
||Deductible loss||773,658,624.73||193,414,656.18|||||
||Amortization ofintangible assets|995,735.86||248,933.97||1,298,590.36||324,647.59||
||Timing differencebetweenaccumulateddepreciation|||||41,939,701.40||10,484,925.35||
||Asset valuationappreciation|566,541,740.54||141,635,435.13||||||
||Total||1,341,196,101.13||335,299,025.28||43,241,291.76||10,810,322.94|

 (2) Deferred income tax liabilities had not been off-set
In RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Items|||Balance in year-end||||Balance in year-begin|||
||||Deductible|Deferred incometax liabilities||Deductibletemporary difference||Deferred incometax liabilities||
||||temporary|||||||
||||difference|||||||
||Changes in fair value|435,221,646.40||108,805,411.60||||||
||of available for sale|||||||||
||financial assets|||||||||
||Deductible temporary||607,306,748.61||151,826,687.15||1,113,854,587.99||278,463,647.00|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
||||||
|-|-|-|-|-|
|differences in the|||||
|formation of asset|||||
|impairment|||||
|Total|1,042,528,395.01|260,632,098.75|1,113,854,587.99|278,463,647.00|

（3）Deferred tax assets of Liabilities that are presented at the net amount after offsetting
In RMB
|||||||
|-|-|-|-|-|-|
|Items||Closing amount ofdeferred tax assetsand liabilities thatare offset|Closing amount ofdeferred tax assetsor liabilities afteroffsetting|Opening amount|Opening amountof deferred taxassets or liabilitiesafter offsetting|
|||||of deferred tax||
|||||assets and||
|||||liabilities that are||
|||||offset||
||Deferred tax assets||335,299,025.28||10,810,322.94|
||Deferred tax liabilities||260,632,098.75||278,463,647.00|

（4）Details of unrecognized deferred tax assets
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Deductible temporary differences|92,288,987.75|91,954,244.59|
|Deductible losses|11,374,068.41|977,316,303.49|
|Total|103,663,056.16|1,069,270,548.08|

 Note:Because it is uncertain that whether the wholly-owned subsidiary ---- Guangdong Expressway Technology Investment Co., Ltd. can obtain taxable income in the future, the deductible temporary differences of this part are not recognized as deferred tax assets.
（5）Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
|||||
|-|-|-|-|
|Year|Balance in year-end|Balance in year-begin|Remark|
|2017||218,901,780.38||
|2018|4,932,481.22|160,481,639.35||
|2019|3,456,570.30|227,972,299.53||
|2020||200,645,733.66||
|2021||169,314,850.57||
|2022|2,985,016.89|||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
|||||
|-|-|-|-|
|Total|11,374,068.41|977,316,303.49|--|

Other notes
Nil
17. Other Non-current assets
In RMB
||||||
|-|-|-|-|-|
|Items||Balance in year-end||Balance in year-begin|
|Prepaid fixed assets engineering fees||39,871,644.68||505,397.83|
|Advance software payment||268,155.00|||
|Prepaid business tax||566,594.58||618,339.90|
|Prepaid land occupation tax||||1,176,432.55|
|Total|40,706,394.26||2,300,170.28||

 Other notes
Nil
18. Account payable
（1）List of Account payable
In RMB
||||||
|-|-|-|-|-|
|Items||Balance in year-end||Balance in year-begin|
|Within 1 year（Including 1 year）||104,264,020.37||259,955,112.29|
|1-2 year （Including 2 years）||135,095,312.76||20,004,237.58|
|2-3 year（Including 3 years）||16,838,384.14||9,038,060.80|
|Over 3 years||10,736,309.72||10,416,636.40|
|Total|266,934,026.99||299,414,047.07||

 (2) Notes of the accounts payable aging over one year
In RMB
||||||
|-|-|-|-|-|
|Items||Balance in year-end||Unpaid reason|
|Guangdong Highway Construction Co.,|75,980,021.00||Unsettled||
|Ltd.|||||
|Heshan Land and resources Bureau||38,186,893.60||Unsettled|
|Foshan Land and resources Bureau||30,507,598.21||Unsettled|
|Guangdong Expressway Co., Ltd.||8,746,491.18||Unsettled|
|Luochun Street Office(Finance Office)||1,043,431.50||Unsettled|
|Total||154,464,435.49||--|

Other notes
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report Nil
19. Advance from customers
(1) List of advance from customers
In RMB
||||||
|-|-|-|-|-|
|Items||Balance in year-end||Balance in year-begin|
|Within 1 year（Including 1 year）||2,413,914.18||1,004,503.09|
|1-2 years（Including 2 years）||459,858.97||51,000.00|
|2-3 years（Including 3 years）|||||
|Over 3 years||11,982,340.75||16,384,520.31|
|Total|14,856,113.90||17,440,023.40||

 (2) Significant advance from customers aging over one year
In RMB
|||||
|-|-|-|-|
|Items||Closing balance|Unpaid/Uncarry over reason|
|Guangzhou Huanlong Expressway Co.,|10,497,463.22||Land rent is not in the|
|Ltd.|||settlement period|
|Guanghdong Xinle Technology|1,342,639.61||The Rental is not in the|
|Development Co., Ltd.|||settlement period|
|Total||11,840,102.83|--|

⑶The completion of the final construction contract has been completed and the project is not completed
Nil
20. Payable Employee wage
（1）Payable Employee wage
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Items|||Year-beginning||Increase in the||Decrease in the|Year-end balance|
||||balance||current period||current period||
||I. Short-term|8,840,599.13||300,260,847.83||297,767,264.80||11,334,182.16|
||compensation||||||||
||II.Post-employment be|||32,145,935.11||32,145,935.11|||
||nefits - defined contrib||||||||
||ution plans||||||||
||III. Dismiss welfare||||408,939.06||408,939.06||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
||||||
|-|-|-|-|-|
|Total|8,840,599.13|332,815,722.00|330,322,138.97|11,334,182.16|

（2）Short-term Remuneration
In RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Items|||Year-beginning||Increase in the||Decrease in the|Year-end balance||
||||balance||current period||current period|||
||1.Wages, bonuses, allowances|1,202,663.49||214,491,849.31||214,064,149.51||1,630,363.29||
||and subsidies|||||||||
||2.Employee welfare||||22,938,607.65||22,938,607.65|||
||3. Social insurance premiums||||18,238,091.83||18,238,091.83|||
||Including ：Medical|||11,494,354.54||11,494,354.54||||
||insurance|||||||||
||Work injury insurance||||535,872.93||535,872.93|||
||Maternity insurance||||1,317,172.78||1,317,172.78|||
||Supplementary medical|||4,890,691.58||4,890,691.58||||
||insurance|||||||||
||4.Public reserves for housing||||26,873,863.61||26,873,863.61|||
||5.Union funds and staff|7,637,935.64||8,864,324.37||6,939,200.09||9,563,059.92||
||education fee|||||||||
||8.Other||||8,854,111.06||8,713,352.11||140,758.95|
||Total|8,840,599.13||300,260,847.83||297,767,264.80||11,334,182.16||

（3）List of drawing scheme
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Items||Balance in||Increase in this||Payable in this|Balance in|
|||year-begin||period||period|year-end|
||1. Basic old-age||21,551,317.63||21,551,317.63|||
||insurance premiums|||||||
||2.Unemployment||774,713.43||774,713.43|||
||insurance|||||||
||3.Enterprise annuity||9,819,904.05||9,819,904.05|||
||payment|||||||
||Total||32,145,935.11||32,145,935.11|||

Other notes: Nil
21. Tax Payable
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report In RMB
||||||
|-|-|-|-|-|
|Items||Balance in year-end||Balance in year-begin|
|VAT||14,248,594.77||10,107,421.05|
|Enterprise Income tax|404,574,001.58||86,569,385.59||
|Individual Income tax||6,572,617.38||4,955,473.49|
|City Construction tax||1,022,178.29||694,432.76|
|Land use tax||1,050,431.75||983,920.72|
|Property tax||253,014.94||2,303,583.10|
|Education subjoin||466,899.60||323,432.09|
|Locality Education subjoin||297,234.60||202,594.86|
|Stamp tax||63,071.56||132,488.16|
|Other||99,349.82||98,166.49|
|Total|428,647,394.29||106,370,898.31||

 Other notes: Nil
22.Interest payable
In RMB
||||||
|-|-|-|-|-|
|Items||Balance in year-end||Balance in year-begin|
|Pay the interest for long-term loans by|8,494,355.93||8,873,911.85||
|installments.|||||
|Interest payable on entrusted loans||||71,371.67|
|Total|8,494,355.93||8,945,283.52||

 - Particulars of significant overdue unpaid interest
Nil
23. Dividends payable
In RMB
||||||
|-|-|-|-|-|
|Items||Year-end balance||Year-Beginning balance|
|Common stock dividends||14,340,792.20||12,506,777.92|
|Xinyue Highway Construction Co., Ltd.||12,500,000.00|||
|Total|26,840,792.20||12,506,777.92||

 Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be
disclosed:
Final dividend payable RMB12,446,296.50 for more than a year in unpaid dividends to shareholder
s over the year was mainly due to non-payment of shareholder dividends did not provide informati
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report on on interest-bearing bank, did not share reform of shareholders to receive dividends or provide a pplication to receive dividends the bank information is incorrect, resulting in failure to pay a divid end or refund.
24.Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
||||||
|-|-|-|-|-|
|Items||Year-end balance||Year-Beginning balance|
|Quality guarantee fund||36,254,269.95||105,901,434.85|
|Deposit||1,676,667.00||1,819,863.15|
|Other||48,732,300.99||26,544,843.34|
|Total|86,663,237.94||134,266,141.34||

 (2) Other significant accounts payable with aging over one year
In RMB
|||||||
|-|-|-|-|-|-|
||Items||Closing balance||Unpaid/un-carry over reason|
|Guangdong Guanyue luqiao Co., Ltd.||2,299,501.38|||Project Quality guarantees /|
||||||Deposit|
||Guangdong Changda Engineering Co.,|2,044,899.53|||Project Quality guarantees/ Bid|
||Ltd||||Guarantees/Deposit|
||Dongguan Yueyu Optoelectronic|1,534,850.00||Project Quality guarantees||
||Technology Co., Ltd.|||||
||Guangdong Xinyue Traffic Investment|1,133,380.18|||Project Quality guarantees/ Bid|
||Co., Ltd.||||Guarantees|
||Total||7,012,631.09||--|

Other notes
Nil
25. Non-current liabilities due within 1 year
In RMB
|||||
|-|-|-|-|
|Items|Balance year-end||Year-beginning balance|
|Long-term loans due within 1 year|1,218,610,000.00||907,880,000.00|
|Long-term payable account due within 1||50,000,000.00||
|year||||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
||||
|-|-|-|
|Total|1,218,610,000.00|957,880,000.00|

 Othernotes：
Long-term borrowing rate is4.20%-5.60%。
26. Long-term loan
(1) Category of long-term loan
In RMB
||||||
|-|-|-|-|-|
|Items||Balance year-end||Year-beginning balance|
|Pledge loan||199,000,000.00||449,000,000.00|
|Guaranteed loans||1,125,000,000.00||1,500,000,000.00|
|Credit loans||3,420,170,000.00||3,453,780,000.00|
|Total|4,744,170,000.00||5,402,780,000.00||

 Notes :
Nil
Other notes including interest raterange：
The Pledge loan rate is4.275%-4.35%; the guaranteed loan interest rate is5.6%; the credit
interest rate is4.20%-4.41%.
27. Long-term payable
(1) Long-term payable listed by nature of the account
In RMB
||||
|-|-|-|
|Items|Balance year-end|Year-beginning balance|
|Non-operating asset payable|2,022,210.11|2,022,210.11|
|Total|2,022,210.11|2,022,210.11|

 Othernotes：Nil
28. Stock capital
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||BalanceYear-beginning||Balance Year-beginning|||||Balance year-end|
|||Issuing ofnew share||Bonusshares|Transferred|Other|Subtotal||
||||||from||||
||||||reserves||||
|Total of|2,090,806,126.00|||||||2,090,806,126.00|
|capital shares|||||||||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report Othernotes：Nil
29. Capital reserves
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Items|||Year-beginning|Increase in the|Decrease in the|Year-end balance||
||||balance|current period|current period|||
||Share premium||2,508,401,790.51||||2,508,401,790.51|
||Other capital reserves||6,552.48|1,661,406.77|||1,667,959.25|
||Total|2,508,408,342.99||1,661,406.77||2,510,069,749.76||

 - The situation of change in the current capital reserve is as follows:
The capital reserve in this period was increased RMB 1,200,000.00 due to the change of the
owner's equity of the joint-stock company ---- Guangdong Guanghui Expressway Co., Ltd. and
was increased RMB 461,406.77 due to the change of owner's equity of the joint-stock company
---- Ganzhou Gankang Expressway Co., Ltd.
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report 30. Other comprehensive income
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Items||Year-beginningbalance||Amount of current period||||||Year-endbalance|
||||Amount for theperiod before income tax||Less ：|Less：Income tax||After - tax attributable to the parent company|After - tax attributable tominority shareholders||
||||||Previously recognized i||||||
||||||n profit or loss in other||||||
||||||comprehensive income||||||
||2.Other comprehensive income reclassifiable to|402,285,954.24|33,783,281.53|||108,805,411.60||-75,022,130.07||327,263,824.17|
||profit or loss in subsequent||||||||||
||Incluidng: Share of other combined gains and||847,589.37|||||847,589.37||847,589.37|
||losses that will be reclassified into profits and||||||||||
||losses after the invested unit under the equity||||||||||
||method||||||||||
||Gains and losses from changes in fair value of av|402,285,954.24|32,935,692.16|||108,805,411.60||-75,869,719.44||326,416,234.80|
||ailable for sale financial assets||||||||||
||Total of other comprehensive income|402,285,954.24||33,783,281.53|||108,805,411.60|-75,022,130.07||327,263,824.17|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report of the available-for-sale financial assets and begin to calculate the deferred income tax influence corresponding to the fair value thereof from the current period.
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report 31. Surplus reserve
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Items|||Year-beginning||Increase in the|Decrease in the|Year-end balance|
||||balance||current period|current period||
||Statutory surplus|366,956,549.89||177,864,580.14|||544,821,130.03|
||reserve|||||||
||Total|366,956,549.89|||177,864,580.14||544,821,130.03|

Statement on surplus reserves. Please state the related resolutions of the Board on capitalizing of reserves, making up losses, anddividends：Nil
32. Retained profits
In RMB
||||||
|-|-|-|-|-|
|Items||Amount of this period||Amount of last period|
|Before adjustments: Retained profits in last|2,920,563,328.27||2,179,239,324.01||
|period end|||||
|After adjustments: Retained profits at the period|2,920,563,328.27||2,179,239,324.01||
|beginning|||||
|Add：Net profit belonging to the owner of the|1,509,922,398.70||1,001,205,945.39||
|parent company|||||
|Less: Statutory surplus reserve||177,864,580.14||71,314,278.93|
|Common stock dividend payable||702,510,858.34||188,567,662.20|
|Retained profit at the end of this term|3,550,110,288.49|||2,920,563,328.27|

As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the affected beginning undistributed profits are RMB 0.00.
(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.00.
(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0.00 . (4) As the change of consolidation scope caused by the same control, the affected beginning undistributed profits are RMB 0.00.
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report 33.Operation income and operation cost
In RMB
|||||||
|-|-|-|-|-|-|
|Items||Amount of this period||Amount of last period||
|||Income|Cost|Income|Cost|
||Main operation|3,038,375,611.56|1,220,538,502.82|2,767,695,321.80|1,254,593,564.99|
||Other operation|50,679,787.65|26,583,850.53|57,354,486.56|26,438,995.51|
||Total|3,089,055,399.21|1,247,122,353.35|2,825,049,808.36|1,281,032,560.50|

34. Business tax and subjoin
In RMB
|||||||
|-|-|-|-|-|-|
||Items||Amount of this period||Amount of last period|
|U|rban construction tax||6,251,001.50||5,622,674.73|
||Education surcharge||2,910,849.26||2,595,905.20|
||Land use tax||1,824,262.72||1,080,794.74|
||Stamp tax||644,841.06||208,422.13|
||Business tax||52,777.05||26,048,319.92|
||Property tax||2,078,526.94||2,144,980.98|
||Locality Education surcharge||1,940,251.33||1,741,251.41|
||Defend expense||384.04||675,586.06|
||Other||297,307.55||464,232.62|
||Total|16,000,201.45||40,582,167.79||

Othernotes：
Nil
35. Administrative expenses
In RMB
||||
|-|-|-|
|Items|Amount of this period|Amount of last period|
|Wage|122,014,401.26|123,350,619.03|
|Depreciation and Amortization|13,686,060.04|13,212,988.09|
|R & D expenses|9,773,866.38|6,171,805.27|
|Low consumables amortization|858,414.10|1,287,939.45|
|Travel expenses|699,038.04|614,219.75|
|Office expenses|6,768,155.85|6,811,678.05|
|Leased expenses|10,987,865.79|11,298,505.38|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
||||||
|-|-|-|-|-|
|The fee for hiring agency||3,938,990.41||2,877,611.81|
|Consultation expenses||3,359,297.28||682,526.84|
|Directorate expenses||9,376.00||35,061.00|
|Expenses of taxation||||1,317,800.12|
|Listing fee||558,490.56||801,340.42|
|Information cost and maintenance fee||2,039,350.41||1,842,583.26|
|Other||14,892,269.85||19,485,213.48|
|Total|189,585,575.97||189,789,891.95||

Othernotes：
Nil
36.Financial expenses
In RMB
||||||
|-|-|-|-|-|
|Items||Amount of this period||Amount of last period|
|Interest expenses||276,594,308.94||361,220,930.13|
|Deposit interest income（-）||-33,696,479.00||-24,008,234.62|
|Exchange Income and loss（Gain-）||-1,522,372.61||533,980.14|
|Bank commission charge|5,931,293.75||3,107,331.78||
|Total|247,306,751.08||340,854,007.43||

Othernotes：
Nil
37 Asset impairment loss
In RMB
||||||
|-|-|-|-|-|
|Items||Amount of this period||Amount of last period|
|I. Bad debt loss||415,340.17||-123,935.18|
|Total|415,340.17||-123,935.18||

Othernotes：
Nil
38. Investment income
In RMB
||||
|-|-|-|
|Items|Amount of this period|Amount of last period|
|Long-term equity investment income by|423,940,445.45|395,658,692.77|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
||||
|-|-|-|
|equity method|||
|Hold the investment income during from|24,327,921.74|45,878,955.51|
|available-for-sale financial assets|||
|Total|448,268,367.19|441,537,648.28|

Othernotes：
Nil
39.Assets disposal income
In RMB
||||
|-|-|-|
|Source|Amount of this period|Amount of last period|
|Income form disposal of fixed assets||10,105,140.34|
|Total||10,105,140.34|

40. Non-Operation income
In RMB
||||||||
|-|-|-|-|-|-|-|
|Items||Amount of this period|Amount of last period|||Recorded in the amount|
|||||||of the non-recurring|
|||||||gains and losses|
||Government Subsidy|385,932.17||704,645.87||385,932.17|
||Total gains from disposal of|180,797.81|118,181.03||180,797.81||
||non-current assets||||||
||Including：Gains from|180,797.81|111,514.37||180,797.81||
||disposal of fixed assets||||||
||Intangible assets scrapped||||||
||gains||||||
||Construction in progress||||||
||scrapped gains||||||
||Other|||6,666.66|||
||Road property claim income|3,539,319.69||3,330,672.74||3,539,319.69|
||Other income(Notes)|61,673,767.04||62,691,849.34||61,673,767.04|
||Total|65,779,816.71|66,845,348.98|||65,779,816.71|

- Government subsidy reckoned into current gains/losses
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Subsidy items|Issuing|Issuing|Nature|Whether|Whhether|Amount of|Amount of|Assets-rela|
||body|reason||the impact|special|current|previous|ted/income|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||of|subsidies||period||period||–related||
||||||subsidies|||||||||
||||||on the|||||||||
||||||current|||||||||
||||||profit and|||||||||
||||||loss|||||||||
||Research on "Blue|||||||120,000.00||||Related toincome||
||Channel" Project|||||||||||||
||based on "Internet|||||||||||||
||Plus" Recognition and|||||||||||||
||Payment Technology|||||||||||||
|Stable job subsidies||||||||265,932.17||433,445.87|||Related to|
||||||||||||||income|
||Special fund for|||||||||210,000.00||Related toincome||
||energy saving and|||||||||||||
||consumption|||||||||||||
||reduction|||||||||||||
||Subsidies for|||||||||31,200.00||Related toincome||
||yellow-label vehicle|||||||||||||
||scrapping|||||||||||||
||Guidelines for space|||||||||30,000.00||Related toincome||
||safety management|||||||||||||
||and application under|||||||||||||
||highway bridge|||||||||||||
||Total|--|--|--|--||--||385,932.17||704,645.87||--|

 Othernotes：
Note: the other gains in this period include the early termination of toll payment compensation of RMB 59,995,667.68 received from State Road 325 Jiujiang Bridge, which is included in the cash flow statement Other Cash Received Relating To Investing Activities.
41. Non-Operation expense
In RMB
||||||||
|-|-|-|-|-|-|-|
|Items||Amount of current||Amount of previous||The amount of|
|||||||non-operating gains &|
|||period||period|||
|||||||losses|
||Exprese of fine|465,323.21||5,511.89||465,323.21|
||Other|3,289,687.56||3,254,436.14||3,289,687.56|
||Total of non-current asset|2,926,481.49|1,578,554.82||2,926,481.49||
||Disposition loss||||||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
||||||
|-|-|-|-|-|
|Incl: loss of fixed assets|2,926,481.49|1,578,554.82|2,926,481.49||
|disposition|||||
|Intangible assets scrapping|||||
|loss|||||
|Construction in progress|||||
|scrapped loss|||||
|Total|6,681,492.26|4,838,502.85||6,681,492.26|

Othernotes：
Nil
40. Income tax expense
(1) Lists of income tax expense
In RMB
||||||
|-|-|-|-|-|
|Items||Amount of current period||Amount of previous period|
|Current income tax expense||636,893,843.60||343,646,040.13|
|Deferred income tax expense||-451,125,662.19||-29,438,996.95|
|Total|185,768,181.41||314,207,043.18||

(2) Adjustment process of accounting profit and income tax expense
In RMB
||||
|-|-|-|
|Items||Amount of current period|
|Total profits|1,895,991,868.83||
|Current income tax expense accounted by tax and relevant|473,997,967.22||
|regulations|||
|Influence of income tax before adjustment||612,443.45|
|Influence of non taxable income||-112,067,091.80|
|Impact of non-deductible costs, expenses and losses||22,952,649.21|
|Affect the use of deferred tax assets early unconfirmed|-200,359,255.72||
|deductible losses|||
|The current period does not affect the deferred tax assets|829,940.01||
|recognized deductible temporary differences or deductible loss|||
|Research and development plus deduction||-198,470.96|
|Income tax expense|185,768,181.41||

Othernotes：
Nil
43. Items of Cash flow statement
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report (1) Other cash received from business operation
In RMB
||||||
|-|-|-|-|-|
|Items||Amount of current period||Amount of previous period|
|Newwork received toll income||7,830,682.35||788,456.24|
|Interest income||33,696,479.00||24,008,234.62|
|Unit current account||59,072,397.31||35,747,674.54|
|Total|100,599,558.66||60,544,365.40||

Notes：
Nil
（2）Other cash paid related to oprating activities
In RMB
|||||||
|-|-|-|-|-|-|
|Items||Amount of current period|||Amount of previous period|
|Management expense||48,176,229.8|5||49,312,523.04|
|Network received toll incom||1,432,404.5|9|||
|Unit current account||45,078,758.9|1||48,953,852.68|
|Total|94,687,393.35|||98,266,375.72||

Notes：
Nil
（3）Other Cash received related to investment activities
In RMB
|||||
|-|-|-|-|
|Items||Amount of current period|Amount of previous period|
|Jiujiang bridge to receive compensation||59,995,667.68|60,770,000.00|
|Total|59,995,667.68||60,770,000.00|

Notes：
Nil
（4）Other Cash payable related to investment activities
In RMB
|||||
|-|-|-|-|
|Items||Amount of current period|Amount of previous period|
|Acquisition and construction|||987,903,684.98|
|company creditor's rights||||
|Total|0.00||987,903,684.98|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual ReportNotes：
Nil
（5）Other Cash received related to Financing activities
In RMB
||||||
|-|-|-|-|-|
|Items||Amount of current period||Amount of previous period|
|Interest discount||10,277,777.78|||
|Piecemeal dividend||||5,173.81|
|Total|10,277,777.78||5,173.81||

Notes：
Nil
⑹Other Cash payable related to financing activities
In RMB
||||||
|-|-|-|-|-|
|Items||Amount of current period||Amount of previous period|
|Recombination fee||||4,194,000.00|
|Issue registration fee||||533,368.84|
|Total|0.00||4,727,368.84||

Notes：
Nil
44. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
|||||||
|-|-|-|-|-|-|
|Supplement Information|||Amount of current period||Amount of previous period|
||I. Adjusting net profit to cash flow from|--||--||
||operating activities|||||
||Net profit|1,710,223,687.42||1,172,357,707.44||
||Add: Impairment loss provision of assets||415,340.17||-123,935.18|
||Depreciation of fixed assets, oil and gas|823,038,155.84||888,249,405.57||
||assets and consumable biological assets|||||
||Amortization of intangible assets||3,128,134.31||3,873,858.09|
||Amortization of Long-term deferred||1,671,197.24||1,813,004.04|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
|||||||
|-|-|-|-|-|-|
|Supplement Information|||Amount of current period||Amount of previous period|
||expenses|||||
||Loss on disposal of fixed assets, intangible|||-10,105,140.34||
||assets and other long-term deferred assets|||||
||Fixed assets scrap loss||2,745,683.68||1,460,373.79|
||Financial cost||275,071,936.33||361,754,910.27|
||Loss on investment||-448,268,367.19||-441,537,648.28|
||Decrease of deferred income tax assets||-324,488,702.34||-10,361,925.74|
||Increased of deferred income tax liabilities||-17,831,548.25||-19,077,071.21|
||Decrease of inventories||323,888.89||477,109.91|
||Decease of operating receivables||-44,132,575.54||28,114,863.62|
||Increased of operating Payable||213,093,094.79||-52,635,553.70|
||Net cash flows arising from operating|2,194,989,925.35||1,924,259,958.28||
||activities|||||
||II. Significant investment and financing|--||--||
||activities that without cash flows:|||||
||3 ． Movement of cash and cash|--||--||
||equivalents：|||||
||Ending balance of cash||2,363,042,700.42||2,603,279,644.25|
||Less: Beginning balance of cash|2,603,279,644.25||1,199,629,276.85||
||equivalents|||||
||Net increase of cash and cash equivalents|-240,236,943.83||1,403,650,367.40||

(2) Net Cash paid of obtaining the subsidiary
Nil
(3) Net Cash receive of disposal of the subsidiary
Nil
（4）Composition of cash and cash equivalents
In RMB
||||||
|-|-|-|-|-|
|Items||Balance in year-end||Balance in year-Beginning|
|I. Cash|2,363,042,700.42||2,603,279,644.25||
|Of which: Cash in stock|66,065.04||50,695.89||
|Bank savings could be used at any time||2,362,279,050.70||2,602,516,079.26|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
||||
|-|-|-|
|Other monetary capital could be used at|697,584.68|712,869.10|
|any time|||
|III. Balance of cash and cash equivalents|2,363,042,700.42|2,603,279,644.25|
|at the period end|||

Othernotes：
Nil
45. Note of statement of changes in the owner's equity
Explain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc.:Nil
46. The assets with the ownership or use right restricted
Othernotes：
Up to December 31, 2017, Jingzhu Expressway Guangzhu Section Co., Ltd., the controlling grandchildren company of the Company, with the toll collection right of Panyu Tangkeng-Zhuhai Jinding section project in Jingzhu expressway, asked for RMB 449,000,000.00 of loan from Guangzhou Wuyang Branch of ICBC to provide pledge guarantee(of which the non-current debt balance with 1-year expiration was RMB 250,000,000.00 and the long-term loan balance was RMB199,000,000.00).
47. Foreign currency monetary items
(1) Foreign currency monetary items
Nil
(2) Note to oversea entities including: for significant oversea entities, shall disclose main operating place, recording currency and selection basis, if there are changes into recording currency, shall also disclose the reason.□ Applicable√ Not applicable
VIII.Changes of consolidation scope
1.Enterprise consolidation not under the same control
（1）Other notes
Nil
2. Enterprise consolidation ont under the same control
（1） Enterprise consolidation ont under same control in reporting period
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report 1.Enterprise consolidation not under the same control
Nil
2. Enterprise consolidation ont under the same control
Nil
3. Counter purchase
Nil
4. The disposal of subsidiary
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in reporting period
□ Yes√ No
5. Other reasons for the changes in combination scope
Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation) and relevant information:Nil
6.Other
Nil
2. Enterprise consolidation ont under the same control
Nil
3. Counter purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of the listed companies whether constituted a business and its basis, the determination of the combination costs, the amount and calculation of adjusted rights and interests in accordance with the equity transaction process.Nil Nil
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes√ No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report reporting period
□ Yes√ No
5. Other reasons for the changes in combination scope
Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation) and relevant information
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.
6.Other
Nil
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Name of Subsidiary|||Main||Regis|Nature ofBusiness|||Shareholding Ratio|||Obtaining Method||
||||Places of||tratio||||(%)|||||
||||Operatio||n|||direct||indirect||||
||||n||Place|||||||||
||Guangdong Fokai Expressway Co., Ltd.|Foshan|||Guan|ExpresswayManagement||100.00%|||||Under the same|
||||||gzho||||||||control business|
||||||u||||||||combination|
|Guangfo Expressway Co., Ltd.||Guangzhou|||Guan|ExpresswayManagement||75.00%|||||Under the same|
||||||gzho||||||||control business|
||||||u||||||||combination|
|Guangdong Expressway TechnologyInvestment Co., Ltd.||Guangzhou||Guangzhou|||Investment in|100.00%||||Investment||
||||||||technical|||||||
||||||||industries and|||||||
||||||||provision of|||||||
||||||||relevant|||||||
|Guangzhuo Guangzhu TrafficInvestment Management Co., Ltd.||Guangzhou|||Guan|Investmentmanagement||100.00%|||||Under the same|
||||||gzho||||||||control business|
||||||u||||||||combination|
|Jingzhu Expressway Guangzhu SectionCo.,Ltd.（Notes）||Zhongshan|||Guan|ExpresswayManagement||20.00%||55.00%|||Under the same|
||||||gzho||||||||control business|
||||||u||||||||combination|
||Yuegao Capital||Guangzh||Zhuh||Investment||100.00%||100.00%||Investment|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
|||||
|-|-|-|-|
|Investment(Hengqin)Co., Ltd.|ou|ai|management|

Notes: holding proportion in subsidiary different from voting proportion:Nil
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the voting rights not been controlled investee:Nil
Significant structure entities and controlling basis in the scope of combination:Nil
Basis of determine whether the Company is the agent or the principal: Nil
Othernotes：
Jingzhu Expressway Guangzhu Section Co., Ltd. is a non-wholly owned subsidiary of Guangzhou Guangzhu Traffic Investment Management Co., Ltd.
(2) Important Non-wholly-owned Subsidiary
In RMB
||||||||
|-|-|-|-|-|-|-|
|Name of Subsidiary|||Shareholding|Profit or Loss Ownedby the MinorityShareholders in theCurrent Period|Dividends Distributedto the MinorityShareholders in theCurrent Period|Equity Balance of theMinority Shareholdersin the End of thePeriod|
||||Ratio of||||
||||Minority||||
||||Shareholders||||
||||(%)||||
||Jingzhu Expressway Guangzhu|25.00%||145,679,970.74|307,667,120.66|303,745,963.68|
||Section Co.,Ltd.||||||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report (3) The main financial information of significant not wholly owned subsidiary
In RMB
||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Name|||Year-end balance||||||||||Year-beginning balance||||||||||
||||Current||Non current|Total assets||Current||Non current|Total liabilities||Current||Non current|Total assets||Current||Non current||Total|
||||assets||assets|||Liabilities||liabilities|||assets||assets|||Liabilities||liabilities||liabilities|
||Guangfo|544,211,527.04||21,454,392.65||565,665,919.69|56,491,522.41||||56,491,522.41|338,006,190.88||59,194,753.95||397,200,944.83|42,152,249.63||||42,152,249.63||
||Expressw||||||||||||||||||||||
||ay Co.,||||||||||||||||||||||
||Ltd.||||||||||||||||||||||
||Jingzhu|168,092,185.25||2,692,035,039.19||2,860,127,224.44|526,412,997.55||1,118,730,372.13||1,645,143,369.68|385,446,003.69||2,934,252,031.69||3,319,698,035.38|547,397,234.64||1,465,372,938.76||2,012,770,173.40||
||Expressw||||||||||||||||||||||
||ay||||||||||||||||||||||
||Guangzhu||||||||||||||||||||||
||Section||||||||||||||||||||||
||Co.,Ltd.||||||||||||||||||||||

In RMB
|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Name|||Amount of current period|||||||Amount of previous period||||||
|||Business income||Net profit||Total||Cash flows from|Business income||Net profit||Total||Cash flows|
|||||||Comprehensive||operating|||||Comprehensive||from operating|
|||||||income||activities|||||income||activities|
||Guangfo Expressway Co.,|439,509,806.68||218,485,271.91|218,485,271.91||269,129,385.44||397,442,447.78||65,673,030.43|65,673,030.43||249,948,946.11||
||Ltd.|||||||||||||||
||Jingzhu Expressway|1,318,255,057.77||582,719,882.98|582,719,882.98||950,191,703.45||1,186,929,175.15||494,271,743.50|494,271,743.50||857,332,484.86||
||Guangzhu Section Co.,Ltd.|||||||||||||||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report (4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
Nil
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
Nil
Othernotes：Nil
2. The transaction of the Company with itsowner’s equity share changed but still controlling the subsidiary Nil
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report 3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Name||Main operatingplace||Registration place||Business nature|||Proportion|||Accounting treatment of the|
|||||||||Directly||Indire||investment of joint venture or|
|||||||||||ctly||associated enterprise|
|Guangdong Guanghui Expressway Co., Ltd.|||Guangzhou,||Guangzhou,||Expressway|30.00%|||Equity method||
||||Guangdong||Guangdong||Management||||||
|Zhaoqing Yuezhao Highway Co., Ltd.|||Zhaoqing,||Zhaoqing,|ExpresswayManagement||25.00%|||Equity method||
||||Guangdong||Guangdong||||||||
|Shenzhen Huiyan Expressway Co., Ltd.|||Shenzhen||Shenzhen||Expressway|33.33%|||Equity method||
||||Guangdong||Guangdong||Management||||||
|Guangdong Jiangzhong Expressway Co., Ltd.|||Zhongshan ,||Guangzhou,Guangd||Expressway|15.00%|||Equity method||
||||Guangdong||ong||Management||||||
|Ganzhou kangda Expressway Co., Ltd.||Gangzhou, Jiangxi||Gangzhou, Jiangxi|||Expressway|30.00%|||Equity method||
||||||||Management||||||
|Ganzhou Gankang Expressway Co., Ltd.||Gangzhou, Jiangxi||Gangzhou, Jiangxi|||Expressway|30.00%|||Equity method||
||||||||Management||||||
|Guangdong Yueke Technology Petty Loan Co., Ltd.|||Guangzhou,||Guangzhou,||Hande all kinds of|20.00%|||Equity method||
||||Guangdong||Guangdong||small loans||||||
||Guangyuan Securities Co., Ltd.||Hefei, Anhui||Hefei, Anhui||Security business||2.37%|||Equity method|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report o exert significant influence over the investee.
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report (2) Main financial information of significant joint venture
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Year-end balance/ Amount of current period|||||Year-beginning balance/ Amount of previous|||
|||||||period|||
|||Guangdong Guanghui||Zhaoqing Yuezhao||Guangdong Guanghui||Zhaoqing Yuezhao|
|||Expressway Co., Ltd.||Highway Co., Ltd.||Expressway Co., Ltd.||Highway Co., Ltd.|
|Current assets||635,522,495.58||181,912,624.81||398,201,907.66||217,772,715.63|
|Including：Cash and|459,088,314.91||168,071,076.84||119,447,466.86||199,426,500.59||
|cash equivalent|||||||||
|Non-current assets||4,004,796,494.08||1,680,394,842.72||4,288,934,082.82||1,780,232,314.01|
|Total assets||4,640,318,989.66||1,862,307,467.53||4,687,135,990.48||1,998,005,029.64|
|Current liabilities||412,938,473.00||176,531,063.96||330,054,720.57||178,262,191.50|
|Non-current liabilities||1,061,024,403.48||518,151,934.87||1,144,392,235.39||626,350,940.66|
|Total liabilities||1,473,962,876.48||694,682,998.83||1,474,446,955.96||804,613,132.16|
|Attributable to|3,166,356,113.18||1,167,624,468.70||3,212,689,034.52||1,193,391,897.48||
|shareholders of the|||||||||
|parent company|||||||||
|Share of net assets|949,906,833.96||291,906,117.18||963,806,710.36||298,347,974.37||
|calculated by stake|||||||||
|Book value of equity|949,906,833.96||291,906,117.18||963,806,710.36||298,347,974.37||
|investment in joint|||||||||
|ventures|||||||||
|Operating income||1,844,690,103.83||511,470,748.89||1,732,764,597.10||597,309,387.56|
|Financial expenses||41,164,514.80||27,476,635.96||45,685,710.96||33,693,501.91|
|Income tax expenses||313,823,801.69||66,259,297.93||282,450,537.92||80,791,325.71|
|Net profit||940,021,656.29||194,923,285.58||846,305,799.89||245,788,530.25|
|Total comprehensive|940,021,656.29||194,923,285.58||846,305,799.89||245,788,530.25||
|income|||||||||
|Dividends received|297,106,373.29||55,172,678.59||360,000,000.00||37,376,405.10||
|fromjoint ventures this|||||||||
|year|||||||||

Othernotes：Nil
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report (3) Main financial information of significant associated enterprise
In RMB
||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Year-end balance/ Amount of current period||||||||||||Year-beginning balance/ Amount of previous period|||||||||
||ShenzhenHuiyanExpresswayCo., Ltd.||GuangdongJiangzhongExpresswayCo., Ltd.||GanzhouKangdaExpressway||GanzhouGankangExpresswayCo., Ltd.|||Guangdong|Guoyuan SecuritiesCo., Ltd.||ShenzhenHuiyanExpresswayCo., Ltd.||GuangdongJiangzhongExpresswayCo., Ltd.||GanzhouKangdaExpressway||GanzhouGankangExpresswayCo., Ltd.|||Guangdong|
|||||||||||Yueke||||||||||||Yueke|
|||||||||||Technology||||||||||||Technology|
|||||||||||Petty Loan Co.,||||||||||||Petty Loan|
|||||||||||Ltd||||||||||||Co., Ltd|
|Current assets||430,404,563.50||147,279,650.98||21,995,366.33||208,757,705.55||1,573,602,864.36||45,296,573,799.43||361,323,243.16||70,211,690.33||23,183,297.78||379,477,241.75||1,631,773,621.73|
|Non-current|190,289,654.66||1,697,555,010.40||1,509,053,324.26||1,434,291,913.76||40,112,141.62||34,917,940,371.90||160,643,504.53||1,923,663,451.58||1,549,188,958.89||1,487,207,118.19||40,580,700.27||
|assets|||||||||||||||||||||||
|Total assets||620,694,218.16||1,844,834,661.38||1,531,048,690.59||1,643,049,619.31||1,613,715,005.98||80,214,514,171.33||521,966,747.69||1,993,875,141.91||1,572,372,256.67||1,866,684,359.94||1,672,354,322.00|
|Current|32,102,623.52||129,152,634.01||100,119,184.60||114,676,781.53||236,708,624.01||36,083,651,550.94||34,660,293.62||512,668,986.06||68,710,800.33||118,070,797.51||336,978,730.26||
|liabilities|||||||||||||||||||||||
|Non-current|||559,000,000.00||735,033,096.47||847,023,826.63||2,006,250.00||18,738,432,070.64||||324,500,000.00||823,203,903.47||1,048,589,599.46||20,757.29||
|Liabilities|||||||||||||||||||||||
|Total|32,102,623.52||688,152,634.01||835,152,281.07||961,700,608.16||238,714,874.01||54,822,083,621.58||34,660,293.62||837,168,986.06||891,914,703.80||1,166,660,396.97||336,999,487.55||
|liabilities|||||||||||||||||||||||
|MinorityShare|||||||||297,258,467.45||12,064,185.84||||||||||292,531,920.59||
|holders’|||||||||||||||||||||||
|Equity|||||||||||||||||||||||
|Shareholders’|588,591,594.64||1,156,682,027.37||695,896,409.52||681,349,011.15||1,077,741,664.52||25,380,366,363.91||487,306,454.07||1,156,706,155.85||680,457,552.87||700,023,962.97||1,042,822,913.86||
|equity|||||||||||||||||||||||
|attributable to|||||||||||||||||||||||
|shareholders|||||||||||||||||||||||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Year-end balance/ Amount of current period||||||||||||Year-beginning balance/ Amount of previous period|||||||||
||ShenzhenHuiyanExpresswayCo., Ltd.||GuangdongJiangzhongExpresswayCo., Ltd.||GanzhouKangdaExpressway||GanzhouGankangExpresswayCo., Ltd.|||Guangdong|Guoyuan SecuritiesCo., Ltd.||ShenzhenHuiyanExpresswayCo., Ltd.||GuangdongJiangzhongExpresswayCo., Ltd.||GanzhouKangdaExpressway||GanzhouGankangExpresswayCo., Ltd.|||Guangdong|
|||||||||||Yueke||||||||||||Yueke|
|||||||||||Technology||||||||||||Technology|
|||||||||||Petty Loan Co.,||||||||||||Petty Loan|
|||||||||||Ltd||||||||||||Co., Ltd|
|of the parent|||||||||||||||||||||||
|Pro rata share|196,197,198.21||173,502,304.11||208,768,922.86||204,404,703.35||215,548,332.90||600,314,769.41||162,435,484.69||173,505,923.37||204,137,265.86||210,007,188.89||208,564,582.77||
|of the net asse|||||||||||||||||||||||
|ts calculated|||||||||||||||||||||||
|--Goodwill||||||||||||206,725,818.02|||||||||||
|The book valu|196,197,198.21||173,502,304.11||208,768,922.86||204,404,703.35||215,548,332.90||807,040,587.43||162,435,484.69||173,505,923.37||204,137,265.86||210,007,188.89||208,564,582.77||
|e of equity inv|||||||||||||||||||||||
|estments in joi|||||||||||||||||||||||
|nt ventures|||||||||||||||||||||||
|Buinsess|233,738,236.95||487,119,486.42||245,700,515.43||152,521,263.87||177,208,471.56||3,502,796,791.77||223,816,057.53||443,464,456.50||252,603,197.60||167,951,197.92||133,977,902.86||
|incme|||||||||||||||||||||||
|Net profit||101,285,140.57||73,587,145.53||83,900,834.10||13,325,048.18||65,212,691.74||1,223,834,271.48||88,126,144.89||35,249,701.81||89,512,587.83||37,470,898.69||37,809,686.98|
|Other|||||||||||-172,970,719.38||||||||||||
|comprehensive|||||||||||||||||||||||
|income|||||||||||||||||||||||
|Total|101,285,140.57||73,587,145.53||83,900,834.10||13,325,048.18||65,212,691.74||1,050,863,552.10||88,126,144.89||35,249,701.81||89,512,587.83||37,470,898.69||37,809,686.98||
|comprehensiv|||||||||||||||||||||||
|e income|||||||||||||||||||||||
|Dividends rec|110,000,000.00||11,041,691.10||21,000,000.00||9,600,000.00||6,058,788.22||||||7,198,500.00||10,500,000.00||6,000,000.00||||
|eived from ass|||||||||||||||||||||||
|ociates during|||||||||||||||||||||||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Year-end balance/ Amount of current period|||||||Year-beginning balance/ Amount of previous period|||||
||ShenzhenHuiyanExpresswayCo., Ltd.||GuangdongJiangzhongExpresswayCo., Ltd.|GanzhouKangdaExpressway|GanzhouGankangExpresswayCo., Ltd.|Guangdong|Guoyuan SecuritiesCo., Ltd.|ShenzhenHuiyanExpresswayCo., Ltd.||GuangdongJiangzhongExpresswayCo., Ltd.|GanzhouKangdaExpressway|GanzhouGankangExpresswayCo., Ltd.|Guangdong|
|||||||Yueke|||||||Yueke|
|||||||Technology|||||||Technology|
|||||||Petty Loan Co.,|||||||Petty Loan|
|||||||Ltd|||||||Co., Ltd|
|the year||||||||||||||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report (4) Summary financial information of insignificant joint venture or associated enterprise
Nil
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds
to the Company
Nil
（6）The excess loss of joint venture or associated enterprise
(7) The unrecognized commitment related to joint venture investment
Nil
(8) Contingent liabilities related to joint venture or associated enterprise investment
Nil
4. Significant common operation
Nil
5. Equity of structure entity not including in the scope of consolidated financial statements
Notes：
Nil
6.Other
Nil
X. Risks Related to Financial Instruments
The major financial instruments of the company include monetary capital, accounts receivable and accounts payable. These financial instruments are primarily related to operating and financing. For the details of the financial instruments, please refer to the related projects in Notes 5. The risk relevant to these financial instruments and the risk management policy adopted by the company for reducing these risks are described as below:
1. Credit Risk
The credit risk means that the party of the financial instrument fails to perform the obligations, and the risk of the financial loss is caused for the other party. The company is mainly facing the customer credit risk due to the credit sale. In order to reduce the credit risk, the company only makes transactions with the recognized and reputable customers, and carries out the continuous monitoring of accounts receivable through monitoring the credit of the existing customers and the aging analysis, in order to ensure the company not facing the risk of bad debts and control the overall credit risk within the controllable range.
2. Interest Rate Risk
The interest rate risk refers to the fluctuation risk appearing for the fair value of financial instruments or future
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report cash flows due to the changes in market interest rate. The interest rate risk faced by the company is mainly from the bank borrowings. Through the establishment of good relations between banks and enterprises, the company makes the reasonable design of credit range, credit variety and credit limit to guarantee the sufficient credit range of the banks and meet the financing demands. Shortening the duration of single borrowings and especially stating the prepayment terms is to reasonably reduce the risk of the interest rate fluctuations.
3. Foreign Exchange Risk
The foreign exchange risk refers to the fluctuation risk appearing for the fair value of financial instruments or future cash flows due to the changes in foreign exchange rate. The company matches the income and expenditure of foreign currency as far as possible in order to reduce the foreign exchange risk. During the reporting period, the company has little effect on the foreign exchange risk due to the short credit term of revenue and expenditure related to the foreign currency.
4. Liquidity Risk
The liquidity risk means that the risk of the shortage of funds occurs when the settlement obligations by the delivery of the cash or other financial assets are fulfilled by the company. The policy of the company is to ensure the sufficient cash for repaying the matured debts. The liquidity risk is under the centralized control of Finance department of the company, and Finance department shall guarantee the company having the sufficient funds to repay the debts under any reasonable forecast through monitoring the cash balance, the marketable securities available to be cash and the rolling forecast for the cash flow of the next six months.
5. Other Price Risk
The company holds the equity investment of other listed companies, and the management believes that these investments facing the market price risk is acceptable. For the equity investment of other listed companies held by the company, please refer to “Available-for-Sale Financial Assets in Article 8 of Consolidated Financial Statement in Notes 5 of Financial Statements”.
XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Items|||Closing fair value|||||||
||||Fir value|Fir value measurementitems at level 2||Fir value measurementitems at level 3||Total||
||||measurement items at|||||||
||||level 1|||||||
||I. Consistent fair value|--||--||--||--||
||measurement|||||||||
||（II）Available-for-sale|952,782,523.20||||||952,782,523.20||
||Financial Assets|||||||||
||（2）Equity instrument|952,782,523.20||||||952,782,523.20||
||investment|||||||||
||Total of Consistent fair|952,782,523.20||||||952,782,523.20||
||value measurement|||||||||
||II.Non-continuous||--||--||--||--|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
||
|-|
|measurement fair value|

2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1.
As at the end of the period, the company holds shares 235,254,944 shares of China Everbright Bank
According to the closing price of December 31, 2017 of RMB 4.05, the final calculation of fair value was RMB952,782,523.20.
3. Valuation technique adopted and nature and amount determination of important parameters for
consistent and inconsistent fair value measurement items at level 2.
Nil
4. Sensitiveness analysis on unobservable parameters and adjustment information between opening and
closing book value of consistent fair value measurement items at level 3.
Nil
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and
closing book value of consistent fair value measurement items at level 3.
Nil
6. Explain the reason for conversion and the policy governing when the conversion happens if conversion happens among consistent fair value measurement items at different levels
Nil
7. Changes in the valuation technique in the current period and the reason for change
Nil
8. Fair value of financial assets and liabilities not measured at fair value
Nil
9.Other
XII. Related parties and related-party transactions
1. Parent company information of the enterprise
|||||||
|-|-|-|-|-|-|
|Name|Registered address|Nature|Redistrictedcapital(RMB’0000)|The parent|The parent|
|||||company of the|company of the|
|||||Company's|Company’s vote|
|||||shareholding ratio|ratio|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
|||||||
|-|-|-|-|-|-|
|GuangdongcommunicationGroup Co., Ltd|No.83,85, BaiyunRoad, YuexiuDistrict,Guangzhou|Equity|2,680,000.00|24.55%|50.12%|
|||management,||||
|||traffic||||
|||infrastructure||||
|||construction and||||
|||railway project||||
|||operation||||

Notes：
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. Businessscope：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
（if the above mentioned business scope requires licenses to operate, then operation licenses arerequired）. The finial control of the Company was State owned assets supervision and Administration Commission of Guangdong Provincial People's Government.
Othernotes：
Nil
2.Subsidiaries of the Company
Subsidiaries of this enterprise, see Note IX the rights of other entity
3. Information on the joint ventures and associated enterprises of the Company
The details Notes IX of significant joint venture and associated enterprise of the Company
Information on other joint venture and associated enterprise of occurring related party transactions with the Company in reporting period, or form balance due to related party transactions in previous period:
Nil
4. Other Related parties
||||
|-|-|-|
||Name|Relation with the Company|
||Guangdong Changda highway Co., Ltd.|Fully owned subsidiary of the parent company|
||Guangdong Hualu Traffic Technology Co., Ltd.|Fully owned subsidiary of the parent company|
||Guangdong Litong Technology Investment Co., Ltd.|Fully owned subsidiary of the parent company|
|Guangdong Humen Bridge Co., Ltd.||Controlled by the same parent company and equity|
|||participation unit|
||Guangdong Expressway Co., Ltd.|Fully owned subsidiary of the parent company|
||Guangdong Tongyi Expressway Service Area Co., Ltd|Fully owned subsidiary of the parent company|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
|||||
|-|-|-|-|
||Name||Relation with the Company|
||Guangdong Xinyue Traffic Investment Co., Ltd.||Fully owned subsidiary of the parent company|
||Guangdong Lulutong Co., Ltd.||Fully owned subsidiary of the parent company|
||Guangdong Litong Investformation Technology Investment|Fully owned subsidiary of the parent company||
||Co., Ltd.|||
||Guangdong Highway Construction Co., Ltd.||Fully owned subsidiary of the parent company|
||Guangdong East Thinking Management Technology|Fully owned subsidiary of the parent company||
||Development Co., Ltd.|||
|Jingzhu Expressway Guangzhu Section Co., Ltd.|||Controlled by the same parent company and equity|
||||participation unit|
||Guangdong Guanghui Expressway Co., Ltd.||Fully owned subsidiary of the parent company|
||Guang –Shen-Zhu Expressway Co., Ltd.||Fully owned subsidiary of the parent company|
||Guangdong Road & Bridge Construction Development Co.,|Fully owned subsidiary of the parent company||
||Ltd.|||
|Guangdong Guangzhu West line Expressway Co., Ltd.|||Controlled by the same parent company and equity|
||||participation unit|
||Gaungdong Kaiyang Expressway Co., Ltd.||Fully owned subsidiary of the parent company|
||Guangdong Chaohui Expressway Co., Ltd.||Fully owned subsidiary of the parent company|
||Guangdong Guangle Expressway Co., Ltd.||Fully owned subsidiary of the parent company|
||Guangdong Maozhan Expressway Co., Ltd.||Fully owned subsidiary of the parent company|
||Guangdong Baomao Expressway Co., Ltd.||Fully owned subsidiary of the parent company|
||Guangdong Jiangzhong Expressway Co., Ltd.||Fully owned subsidiary of the parent company|
||Guangdong Boda Expressway Co., Ltd.||Fully owned subsidiary of the parent company|
||Guangdong West Coastal Expressway Zhuhai Section Co., Ltd.||Fully owned subsidiary of the parent company|
||Guangdong Guangfo Expressway Co., Ltd.||Fully owned subsidiary of the parent company|
||Guangdong Yangmao Expressway Co., Ltd.||Fully owned subsidiary of the parent company|
||Guangdong Zhaoyang Expressway Co., Ltd.||Fully owned subsidiary of the parent company|
||Guangdong Shanfen Expressway Co., Ltd.||Fully owned subsidiary of the parent company|
||Guangdong Yuedong Expressway Industry Development|Fully owned subsidiary of the parent company||
||Co.,Ltd.|||
||Guangdong Taishan Coastal Expressway Co., Ltd.||Fully owned subsidiary of the parent company|
||Guangdong Traffic Industry Investment Co., Ltd.||Fully owned subsidiary of the parent company|
||Guangdong West coastal Expressway Xinhui Section Co., Ltd.||Fully owned subsidiary of the parent company|
||Guangdong Yueyun Traffic Co., Ltd.||Fully owned subsidiary of the parent company|
||Guangdong Luoyang Expressway Co., Ltd.||Fully owned subsidiary of the parent company|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
||||
|-|-|-|
|Name||Relation with the Company|
|Yunfu Guangyun Expressway Co., Ltd.||Fully owned subsidiary of the parent company|
|Guangdong Yunwu Expressway Co., Ltd.||Fully owned subsidiary of the parent company|
|Zhaoqing Guanghe Expressway Co., Ltd.||Fully owned subsidiary of the parent company|
|Guangdong Yuzhan Expressway Co., Ltd.||Fully owned subsidiary of the parent company|
|Guangdong Expressway Media Co., Ltd.||Fully owned subsidiary of the parent company|
|Guangdong Litong Real Estate Co., Ltd.||Fully owned subsidiary of the parent company|
|Guangdong Union Electron Service Co., ltd.||Fully owned subsidiary of the parent company|
|Guangdong Nanyue Traffic Shaogan Expressway Management|Fully owned subsidiary of the parent company||
|Center|||
|Gungdong West coastal Expressway Co., ltd.||Fully owned subsidiary of the parent company|
|Guangdong Gaoda Property Development Co., Ltd.||Fully owned subsidiary of the parent company|
|Guangdong Jiangzhao Expressway Management Center||Managed by the parent company|
|Guangdong Meihe Expressway Co., Ltd.||Fully owned subsidiary of the parent company|
|Heyuan Helong Expressway Co., Ltd.||Fully owned subsidiary of the parent company|
|Guangdong Two Guang Expressway Co., Ltd.||Fully owned subsidiary of the parent company|
|Guangdong Pingxing Expressway Co., Ltd.||Fully owned subsidiary of the parent company|
|Guangdong Hehui Expressway Co., Ltd.||Fully owned subsidiary of the parent company|
|Guangzhongjiang Expressway Project Management Office||Managed by the parent company|
|Zhongshan Yueyun Airoort Express Passenger Co., Ltd.||Fully owned subsidiary of the parent company|
|Xinyue Highway Construction Co., Ltd.||Minority shareholders of the holding Sun-Subsidiarie|

Other notes
5. List of related-party transactions
(1)Information on acquisition of goods and reception of labor service
Acquisition of goods and reception of labor service
In RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Related parties||Content ofrelatedtransaction||Amount ofcurrent period||Amount|Overthetradinglimit ornot?|Amount of lastperiod||
|||||||of||||
|||||||previou||||
|||||||s period||||
||Guangdong Changda highway Co., Ltd.||Project fund||24,378,346.43||||27,802,872.06|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Related parties||Content ofrelatedtransaction||Amount ofcurrent period||Amount|Overthetradinglimit ornot?|Amount of lastperiod||
|||||||of||||
|||||||previou||||
|||||||s period||||
||Guangdong Hualu Traffic Technology Co., Ltd.||Project fund||7,535,263.53||||4,327,300.74|
||Guangdong Litong Technology Investment Co.,|Project fund||1,431,442.00||||721,330.00||
||Ltd.|||||||||
|Guangdong Humen Bridge Co., Ltd.|||Project|174,000.00||||986,696.61||
||||fund,service|||||||
||Guangdong Expressway Co., Ltd.||Project fund||144,221.17||||1,819,114.07|
||Guangdong Tongyi Expressway Service Area Co.,|service||820,276.93||||||
||Ltd|||||||||
||Guangdong Xinyue traffic Investment Co., Ltd.||Project fund||9,500.00||||36,000.00|
||Guangdong Lulutong Co., Ltd.||Project fund||||||136,500.00|
||Guangdong Litong Information Technology|Project fund||||||50,000.00||
||Investment Co., Ltd.|||||||||
||Ganzhou Gankang Expressway Co., Ltd.||Interest||1,051,109.99||||2,374,730.01|
||Guangdong Highway Construction Co., Ltd.||Interest||||||37,356,795.08|
||Guangdong East Thinking Management|Service||470,705.00||||||
||Technology Development Co., Ltd.|||||||||
||Guangdong Changda Highway Engineering Co.,|Project fund||1,152,297.42||||1,035,251.57||
||Ltd.|||||||||
||Guangdong Litong Technology Investment Co., ltd.||Project fund||39,000.00||||205,000.00|
|Guangdong Xinyue Traffic Investment Co., Ltd.|||Purchasing|219,756.38||||3,934,671.10||
||||assets|||||||
||Guangdong Litong Technology Investment Co.,||Purchasing|323,000.00||||||
||Ltd.||assets|||||||
|Guangdong Hualu Traffic Technology Co., Ltd.|||Purchasing|45,913.29||||||
||||assets|||||||
|uangdong Lulutong Co., Ltd.|||Purchasing|||||344,996.00||
||||assets|||||||
||Guangdong East Thinking Management||Purchasing|||||145,888.00||
||Technology Development Co., Ltd.||assets|||||||
||Guangdong Litong Information Technology||Purchasing|||||37,524.00||
||Investment Co., Ltd.||assets|||||||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|Related parties||Content ofrelatedtransaction||Amount ofcurrent period|Amount|Overthetradinglimit ornot?|Amount of lastperiod|
||||||of|||
||||||previou|||
||||||s period|||
||Guangdong East Thinking Management||Purchasing|614,275.80|||532,000.00|
||Technology Development Co., Ltd.||assets|||||
|Guangdong Litong Technology Investment Co., ltd.|||Purchasing|950,000.00||||
||||assets|||||
|Guangdong Hualu Traffic Technology Co., Ltd.|||Purchasing|12,405.71||||
||||assets|||||
|gdong Lulutong Co., Ltd.|||Purchasing|144,000.00||||
||||assets|||||
||Guangdong Litong Information Technology||Purchasing||||240,000.00|
||Investment Co., Ltd.||assets|||||
|Guangdong Changda highway Co., Ltd.|||Purchasing|24,709,006.46|||6,083,598.63|
||||assets|||||
|Guangdong Xinyue Traffic Investment Co., Ltd.|||Purchasing|2,858,773.68|||1,748,478.00|
||||assets|||||
|Guangdong Hualu Traffic Technology Co., Ltd.|||Purchasing|2,717,447.60|||24,078.02|
||||assets|||||
|Guangdong Litong Technology Investment Co., ltd.|||Purchasing|678,996.00||||
||||assets|||||
|Guangdong Highway Construction Co., Ltd.|||Purchasing||||126,434.47|
||||assets|||||

Related transactions on sale goods and receiving services
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Related party||Content|||Amount of current||Amount of|
||||||period||previous period|
|Jingzhu Expressway Guangzhu North section Co., Ltd.|||Commission|16,328,018.89||16,668,320.79||
||||management|||||
||||fee|||||
||Guangdong Expressway Co., Ltd.||Project fund||6,304,510.75||4,358,123.39|
||Guangdong Guanghui Expressway Co., Ltd.||Project fund||5,873,759.61||5,700,367.67|
||Guangdong Xinyue Traffic Investment Co., Ltd.||Project fund||3,534,631.70||5,603,396.01|
||Guang-Shen-Zhu Expressway Co., Ltd.||Project fund||1,683,819.56||401,886.81|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|Related party||Content|||Amount of current||Amount of|
||||||period||previous period|
||Guangdong Luqiao Construction Development Co., Ltd.||Project fund||839,724.05|||
||Guangdong Guangzhu West Line Expressway Co., Ltd.||Project fund||758,317.15|||
||Guangdong Kaiyang Expressway Co., Ltd.||Project fund||682,612.31||536,336.69|
||Guangdong Chaohui Expressway Co., Ltd.||Project fund||457,548.31||82,075.47|
||Guangdong Guangle Expressway Co., Ltd.||Project fund||445,418.32||338,949.84|
||Guangdong Highway Construction Co., Ltd.||Project fund||397,676.19|||
||Guangdong Maozhan Expressway Co., Ltd.||Project fund||350,468.19||125,943.40|
||Guangdong Baomao Expressway Co., Ltd.||Project fund||328,602.10||121,698.12|
||Zhaoqing Yuezhao Highway Co., Ltd.||Project fund||325,814.39|||
||Guangdong Jiangzhong Expressway Co., Ltd.||Project fund||319,266.57||147,169.81|
||Guangdong Boda Expressway Co., Ltd.||Project fund||317,618.56||77,830.19|
||Guangdong West Coastal Expressway Zhuhai Section Co.,|Project fund||312,705.95||277,591.66||
||Ltd.|||||||
||Guangdong Guangfo Expressway Co., Ltd.||Project fund||297,452.82|||
||Guangdong Yangmao Expressway Co., Ltd.||Project fund||269,627.28||99,056.61|
||Guangdong Zhaoyang Expressway Co., Ltd.||Project fund||246,214.16||116,037.74|
||Guangdong Litong Technology Investment Co., Ltd.||Project fund||208,504.28||695,042.73|
||Guangdong Shanfen Expressway Co., Ltd.||Project fund||137,244.44|||
||Guangdong Yuedong Expressway Industry Development|Project fund||125,935.04||||
||Co.,Ltd.|||||||
||Guangdong Taishan Coastal Expressway Co., Ltd.||Project fund||118,867.92|||
||Guangdong Humen Bridge Co., Ltd.||Project fund||115,477.34|||
||Shenzhen Huiyan Expressway Co., Ltd.||Project fund||103,765.52|||
||Guangdong Traffic Industry Investment Co., Ltd.||Project fund||101,018.80|||
||Guangdong West Coastal Expressway Xinhui Section Co.,|Project fund||64,691.05||15,566.04||
||Ltd.|||||||
||Guangdong Yueyun Traffic Co., Ltd.||Project fund||56,603.78|||
||Guangdong Luoyang Expressway Co., Ltd.||Project fund||53,773.58|||
||Yunfu Guangyun Expressway Co., Ltd.||Project fund||50,943.40||36,792.46|
||Guangdong Yunwu Expressway Co., Ltd.||Project fund||||161,320.76|
||Zhaoqing Guanghe Expressway Co., Ltd.||Project fund||||107,547.16|
||Guangdong Yuzhan Expressway Co., Ltd.||Project fund||||70,754.72|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report Notes
（2）Related trusteeship/contract
Nil
（3）Information of related lease
The Company waslessor：
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Name of lessee||Category of lease assets|||The lease income||The lease income|
||||||confirmed in this year||confirmed in last year|
||Guangdong Tongyi Expressway Service|Service Area Lease||6,009,052.78||12,769,015.99||
||Area Co., Ltd.|||||||
|Guangdong Expressway Media Co., Ltd.|||Advertising lease|3,912,772.37||3,972,182.63||
||Guangdong Changda Highway Engineering|Equipment lease||118,974.36||||
||Co., Ltd.|||||||

- The company waslessee：
In RMB
||||||||
|-|-|-|-|-|-|-|
|Lessor||Category of leased assets|||The lease income confirmed|Category of leased assets|
||||||in this year||
||Guangdong Litong Property||Office space|8,619,987.40||8,541,068.93|
||Investment Co., Ltd||||||
||Guangdong Guanghui||Advertising column lease|948,300.00||1,409,100.00|
||Expressway Co., Ltd.||||||
||Zhaoqing Yuezhao Highway|Advertising column lease||234,609.00||236,250.00|
||Co., Ltd.||||||
||Guangdong Kaiyang|Equipment lease||116,504.85|||
||Expressway Co., Ltd.||||||
||Zhaoqing Yuezhao Highway|Equipment lease||116,504.85|||
||Co., Ltd.||||||
||Guangdong Highway|Office space||109,182.36||109,182.36|
||Construction Co., Ltd.||||||
||Guangdong Maozhan|Equipment lease||102,564.10|||
||Expressway Co., Ltd.||||||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report The Company was secured party
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Guarantor|||Guarantee|Start date|End date||Execution|
||||amount||||accomplished or not|
||Guangdong Communication|1,725,000,000.00||September 25,2012|March 25,2020|No||
||Group Co., Ltd.|||||||

Notes:
Controlling shareholder Guangdong Communication Group Co., Ltd. accepted Pacific Asset Management Co., Ltd. insurance debt investment plan to provide joint liability guarantee of principal and interest in full and unconditional irrevocable. The company held Fokai Expressway Co., Ltd.75% stake in Guangdong Communication Group Co., Ltd. to provide a counter-guarantee.
(5) Inter-bank lending of capital of related parties
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Related party||Amount|Initial date||Due date||Notes|
|||borrowed and||||||
|||loaned||||||
||Borrowed|||||||
||Ganzhou Gankang Expressway Co., Ltd.|50,000,000.00||June 10,2015||June 10,2017||
||Loaned|||||||

(6) Related party asset transfer and debt restructuring
Nil
(7) Rewards for the key management personnel
In RMB
||||
|-|-|-|
||Amount of current period|Amount of previous period|
|Items|||
|Rewards for the key management|||
||6,003,229.80|5,970,400.00|
|personnel|||
|Numbers for the key management|||
||32.00|29.00|
|personnel|||

(8) Other related-party transactions
-Capital Deposit Situation of Guangdong Provincial Communication Group Finance Co., Ltd.
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
||||||
|-|-|-|-|-|
|Items||Amount of current period||Amount of previous period|
|Balance of Deposit|366,841,521.49||||
|Interest Income|||1,991,524.18||
|Pricing Principle|Refer to deposit interest rate at the corresponding period of Bank of China||||

The Company's subsidiary, Jingzhu Expressway Guangzhu Section Co., Ltd. signed a cancellation agreement with Guangdong Communications Group Finance Co., Ltd. on June 29, 2016, and transferred out the balance of funds deposited with Guangdong Communications Group Finance Co., Ltd.
On December 25, 2017 and December 22, 2017, the Company signed the Cash Management Business Cooperation Agreement with Guangdong Communications Group Finance Co., Ltd. and Industrial and Commercial Bank of China Guangdong Branch and signed the Cash Management Business Cooperation Agreement with Guangdong Communications Group Finance Co., Ltd. and China Construction Bank Corporation. Guangdong Branch respectively, to join in the cash pool of Guangdong Communications Group Finance Co., Ltd. - Approved by the “Reply on Approving Guangdong Provincial Expressway Development Co., Ltd Issue of Share and Cash to Buy Assets and Raise Matching Funds to Guangdong Provincial Expressway Co., Ltd. ”ofCSRC’s Permission[2016] No.230, the Company purchased thecreditor’s rights with RMB 987,903,684.98 in Jingzhu Expressway Guangzhu Section Co., Ltd. from Guangdong Provincial Expressway Co., Ltd. on June 2016
-On June 15, 2016,Thecompany’s 29th meeting (Provisional) of the seventh board of directors was convened. The Proposal on Entrustment of Construction Management of the Renovation and Expansion Project of Sanbao-to-Shuikou Section of Shengyang-to-Haikou National Expressway was deliberated in the meeting, agreed that Guangdong Provincial Fokai Expressway Co., Ltd entrusts Guangdong Provincial Highway Construction Co., Ltd with the construction management of the renovation and expansion project of Sanbao-to-Shuikou Section of Shengyang-to-Haikou National Expressway, and handling the related matters of the entrustment of the construction management.
6. Receivables and payables of related parties
（1）Receivables
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Name||Related party|||Amount at year end||Amount at year beginning||
|||||Balance of Book||Bad debt|Balance of|Bad debt|
|||||||Provision|Book|Provision|
||Account|Guangdong Union electron Servce Co., Ltd.||45,447,260.32|||||
||receivable||||||||
||Account||Guangdong Humen Bridge Co., Ltd.||9,425,822.31||5,095,878.42||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Name||Related party|||Amount at year end||||Amount at year beginning|||
|||||Balance of Book|||Bad debt||Balance of||Bad debt|
||||||||Provision||Book||Provision|
||receivable|||||||||||
||Account||Jingzhu Expressway Guangzhu Section Co.,|4,821,700.01||||4,812,500.02||||
||receivable||Ltd.|||||||||
||Account|Guangdong Guanghui Expressway Co., Ltd.||4,025,633.55||||||||
||receivable|||||||||||
||Account||Guangdong Xinyue Traffic Investment Co.,|3,848,556.04||65,052.00||5,333,036.61||||
||receivable||Ltd.|||||||||
||Account|Guangdong Expressway Media Co., Ltd.||1,799,600.00||||||||
||receivable|||||||||||
||Account|uangdong Expressway Co., Ltd.||1,274,749.50||||117,500.00||||
||receivable|||||||||||
||Account|Guangdong Kaiyang Expressway Co., Ltd.||379,837.72||||178,414.29||||
||receivable|||||||||||
||Account||Guangdong West coastal Expressway Zhuhai|352,194.00||55,258.00||259,194.00||18,419.40||
||receivable||Section Co., Ltd.|||||||||
||Account||Guangdong Guangzhu West Line|356,850.40||||||||
||receivable||Expressway Co., Ltd.|||||||||
||Account|Guangdong highway Construction Co., Ltd.||207,000.00||||||||
||receivable|||||||||||
||Account||Guangdong Litong Technology|201,342.00||||813,200.00||||
||receivable||InvestmentCo., Ltd.|||||||||
||Account|Guang-Shen-Zhu Expressway Co., Ltd.||189,000.00||||||||
||receivable|||||||||||
||Account||Guangdong Nanyue Traffic Shaogan|179,424.00||||||||
||receivable||Expressway Management Center|||||||||
||Account|Guangdong Maozhan Expressway Co., Ltd.||166,196.80||||||||
||receivable|||||||||||
||Account|Guangdong Baomao Expressway Co., Ltd.||145,038.40||||||||
||receivable|||||||||||
||Account||Guangdong Yuedong Expressway Industry|139,976.80||||||||
||receivable||Development Co., Ltd.|||||||||
||Account||Guangdong West coastal Expressway Xinhui|67,110.00||10,233.00||50,610.00||3,411.00||
||receivable||Section Co., Ltd.|||||||||
||Account||Guangdong West Coastal Expressway|30,000.00||2,830.00||||||
||receivable||Co.,Ltd.|||||||||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Name||Related party|||Amount at year end|||Amount at year beginning||
|||||Balance of Book||Bad debt||Balance of|Bad debt|
|||||||Provision||Book|Provision|
||Prepayable||Guangdong Litong Property Investment Co.,|700,087.62|||700,087.62|||
||account||Ltd.|||||||
||Prepayable|Zhaoqing Yuezhao Highway Co., Ltd.||144,703.00|||131,250.00|||
||account|||||||||
||Other Account||Guangdong Litong Property Investment Co.,|1,505,864.00|||1,435,856.00|||
||receivable||Ltd.|||||||
||Other Account|Guangdong Guanghui Expressway Co., Ltd.||1,463,995.66|||1,140,901.90|||
||receivable|||||||||
||Other Account|Guangdong Expressway Media Co., Ltd.||1,213,926.84|||1,589,781.22|||
||receivable|||||||||
||Other Account|Guangdong Expressway Co., Ltd.||597,164.23|||821,759.56|||
||receivable|||||||||
||Other Account|Zhaoqing Yuezhao Highway Co., Ltd.||427,478.09|||419,326.00|||
||receivable|||||||||
||Other Account||Guangdong Xinyue Traffic Investment|415,442.60|||168,562.60|||
||receivable||Co.,Ltd.|||||||
||Other Account|Guang-Shen-Zhu Expressway Co., Ltd.||223,371.78|||146,737.75|||
||receivable|||||||||
||Other Account||Guangdong Guangzhu West Line|187,560.16||||||
||receivable||Expressway Co., Ltd.|||||||
||Other Account|Guangdong Highway Construction Co., Ltd.||115,058.75|||84,575.88|||
||receivable|||||||||
||Other Account|Guangdong Guangle Expressway Co., Ltd.||104,353.10|||51,029.05|||
||receivable|||||||||
||Other Account||Guangdong Luqiao Construction|93,172.08|||12,669.38|||
||receivable||Development Co., Led.|||||||
||Other Account|Guangdong Kaiyang Expressway Co., Ltd.||88,827.08|||109,943.37|||
||receivable|||||||||
||Other Account||Guangdong Jingzhu Expressway|63,612.63|||55,694.00|||
||receivable||GuangzhuNorth Section Co., Ltd.|||||||
||Other Account|Guangdong Humen Bridge Co., Ltd.||58,139.05|||8,692.22|||
||receivable|||||||||
||Other Account|Guangdong Boda Expressway Co., Ltd.||52,689.46||||||
||receivable|||||||||
||Other Account||Guangdong Yangmao Expressway Co., Ltd.||46,778.36|||35,214.28||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Name||Related party|||Amount at year end|||Amount at year beginning||
|||||Balance of Book||Bad debt||Balance of|Bad debt|
|||||||Provision||Book|Provision|
||receivable|||||||||
||Other Account||Guangdong West Coastal Expressway|40,967.05|||31,945.45|||
||receivable||Zhuhai Section Co., Ltd.|||||||
||Other Account||Guangdong Jiangzhong Expressway Co.,|28,942.41|||20,607.68|||
||receivable||Ltd.|||||||
||Other Account|Guangdong Maozhan Expressway Co., Ltd.||17,591.49|||11,402.00|||
||receivable|||||||||
||Other Account|Yunfu Guangyun Expressway Co., Ltd.||11,628.49|||9,269.17|||
||receivable|||||||||
||Other Account||Guangdong Gaoda Property Development|9,940.70||||||
||receivable||Co., Ltd.|||||||
||Other Account||Guangdong JIangzhao Expressway|9,098.40||||||
||receivable||Management Center|||||||
||Other Account|Guangdong Shanfen Expressway Co., Ltd.||8,028.80||||||
||receivable|||||||||
||Other Account|Guangdong Baomao Expressway Co., Ltd.||7,633.60||||||
||receivable|||||||||
||Other Account||Guangdong Yuedong Expressway Industry|7,367.20|||367.45|||
||receivable||Development Co., Ltd.|||||||
||Other Account||Guangdong West coastal Expressway Xinhui|5,753.20|||3,790.00|||
||receivable||Section Co., Ltd.|||||||
||Other Account|Guangdong Chaohui Expressway Co., Ltd.||5,617.45|||342.29|||
||receivable|||||||||
||Other Account||Guangdong Litong Technology Investment|5,273.00||||||
||receivable||Co., Ltd.|||||||
||Other Account|Guangdong Zhaoyang Expressway Co., Ltd.||4,309.15|||186.11|||
||receivable|||||||||
||Other Account|Guangdong Meihe Expressway Co., Ltd.||3,367.47|||1,780.00|||
||receivable|||||||||
||Other Account|Guangdong Yueyun Traffic Co., Ltd.||3,032.00||||||
||receivable|||||||||
||Other Account||Guangdong Nanyue Traffic Zhaogan|1,860.07||||||
||receivable||Expressway Management Center|||||||
||Other Account||Guangdong Guangfozhao Expressway|1,685.28||||||
||receivable||Co.,Ltd.|||||||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Name||Related party|||Amount at year end|||Amount at year beginning||
|||||Balance of Book||Bad debt||Balance of|Bad debt|
|||||||Provision||Book|Provision|
||Other Account|Heyuan Helong Expressway Co., Ltd.||1,428.35|||1,180.74|||
||receivable|||||||||
||Other Account||Guangdong Two Guang Expressway Co.,|556.32|||1,585.66|||
||receivable||Ltd.|||||||
||Other Account|Guangdong Pingxing Expressway Co., Ltd.||243.34|||111.05|||
||receivable|||||||||
||Other Account||Guangdong Tongyi Expressway Service||||9,170,589.80|||
||receivable||Area Co., Ltd.|||||||
||Other Account|Zhaoqing Guanghe Expressway Co., Ltd.|||||202,257.23|||
||receivable|||||||||
||Other Account|Guangdong Boda Expressway Co., Ltd.|||||45,735.46|||
||receivable|||||||||
||Other Account|Guangdong Yueyun Traffic Co., Ltd.|||||3,032.00|||
||receivable|||||||||
||Other Account|Guangdong Yunwu Expressway Co., Ltd.|||||6,811.45|||
||receivable|||||||||
||Other Account|Guangdong Hehui Expressway Co., Ltd.|||||188.53|||
||receivable|||||||||
||Other Non-Current||Guangdong Changda Highway Engineering|15,937,725.40|||455,259.04|||
||Assets||Co., Ltd.|||||||
||Other Non-Current||Guangdong East Thinking Management|268,155.00||||||
||Assets||Technology Development Co., Ltd.|||||||
||Other Non-Current||Guangdong Xinyue Traffic Investment||||4,588.15|||
||Assets||Co.,Ltd.|||||||

Note: if the related transaction is agreed to settle based on net amount, the amount after offsetting the amount due from related parties is filled in.
（2）Payables
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Name||Related party||Amount at year end|||Amount at year|
||||||||beginning|
|Account payable|||Guangdong Highway Construction Co.,|75,980,021.00||133,928,111.00||
||||Ltd.|||||
||Account payable||Guangdong Changda Highway||14,449,499.60||21,464,454.62|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|Name||Related party||Amount at year end|||Amount at year|
||||||||beginning|
||||Engineering Co.,Ltd.|||||
||Account payable||Guangdong Expressway Co., Ltd.||8,746,491.18||8,746,491.18|
|Account payable|||Guangdong Litong Technology|2,152,850.00||||
||||Investment Co., Ltd.|||||
|Account payable|||Guangdong Guanghui Expressway|948,300.00||||
||||Co.,Ltd.|||||
|Account payable|||Guangdong Xinyue Traffic Investment|776,543.24||4,342,684.85||
||||Co., Ltd.|||||
|Account payable|||Guangdong Hualu Traffic Technology|383,282.00||2,492,830.89||
||||Co., Ltd.|||||
|Account payable|||Guangdong Maozhan Expressway|120,000.00||||
||||Co.,Ltd.|||||
|Account payable|||Guangdong Union Electron Service|1.59||||
||||Co.,Ltd.|||||
||Account payable||Guangdong Lulutong Co., Ltd.||||136,500.00|
||Account payable||Zhaoqing Yuezhao Highway Co., Ltd.||||19,500.00|
||Interest payable||Ganzhou Gankang Expressway Co., Ltd.||||71,371.67|
|Advances account|||Guangdong Jingzhu Expressway|0.06||||
||||Guangzhu North Section Co., Ltd.|||||
|Other Payable account|||Guangdong Changda Highway|3,953,559.55||42,399,234.18||
||||Engineering Co.,Ltd.|||||
|Other Payable account|||Guangdong Union Electron Service|2,238,981.27||||
||||Co.,Ltd.|||||
|Other Payable account|||Guangdong Xinyue Traffic Investment|1,636,943.30||2,036,630.68||
||||Co., Ltd.|||||
|Other Payable account|||Guangdong Litong Technology|465,228.30||448,542.95||
||||Investment Co., Ltd.|||||
||Other Payable account||Guangdong Expressway Co., Ltd.||350,680.10||63,398.31|
|Other Payable account|||Guangdong Kaiyang Expressway Co.,|272,445.68||||
||||Ltd.|||||
|Other Payable account|||Guangdong East Thinking Management|230,713.19||207,736.40||
||||Technology Development Co., Ltd.|||||
|Other Payable account|||Guangdong Jiangzhong Expressway Co.,|215,384.63||289.81||
||||ltd.|||||
||Other Payable account||Guangzhongjiang Expressway Projict||200,000.00|||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|Name||Related party||Amount at year end|||Amount at year|
||||||||beginning|
||||Management office|||||
|Other Payable account|||Guangdong Maozhan Expressway|188,931.56||||
||||Co.,Ltd.|||||
|Other Payable account|||Guangdong Hualu Traffic Technology|181,253.14||140,100.65||
||||Co., Ltd.|||||
||Other Payable account||Guangdong Lulutong Co., Ltd.||133,249.80||17,249.80|
|Other Payable account|||Guangdong Tongyi Expressway Service|120,000.00||20,000.00||
||||Area Co., Ltd.|||||
||Other Payable account||Guangdong Expressway Media Co., Ltd.||70,000.00||70,000.00|
|Other Payable account|||Guangdong Jiangzhao Expressway|62,047.64||||
||||Management Center|||||
|Other Payable account|||Guangdong Zhaoyang Expressway|49,171.27||||
||||Co.,Ltd.|||||
|Other Payable account|||Guangdong Baomao Expressway Co.,|48,950.59||662.16||
||||Ltd.|||||
|Other Payable account|||Guangdong West Coastal Expressway|48,146.64||||
||||Zhuhai Section Co., Ltd.|||||
|Other Payable account|||Zhongshan Yueyun Airport EXPRESS|34,568.85||||
||||Pessenger Transport Co., Ltd.|||||
||Other Payable account||Guang-Shen-Zhu Expressway Co., Ltd.||20,344.23|||
|Other Payable account|||Guangdong Guanghui Expressway|20,221.75||||
||||Co.,Ltd.|||||
|Other Payable account|||Guangdong Guangzhu West Line|18,981.84||||
||||Expressway Co., Ltd.|||||
|Other Payable account|||Guangdong Litong Information|16,376.20||16,376.20||
||||Technology Investment Co., Ltd.|||||
|Other Payable account|||Guangdong Jingzhu Expressway|13,553.00||1,172.00||
||||Guangzhu North Section Co., Ltd.|||||
|Other Payable account|||Guangdong Highway Construction|11,158.46||176.02||
||||Co.,Ltd.|||||
|Other Payable account|||Guangdong Shanfen Expressway Co.,|5,843.90||110.35||
||||Ltd.|||||
|Other Payable account|||Guangdong West Coastal Expressway|3,342.12||2,667.96||
||||Co., Ltd.|||||
|Other Payable account|||Guangdong Yangmao Expressway|2,817.71||||
||||Co.,Ltd.|||||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|Name||Related party||Amount at year end|||Amount at year|
||||||||beginning|
|Other Payable account|||Guangdong Yuedong Expressway|2,566.50||||
||||Industry Development Co., Ltd.|||||
|Other Payable account|||Guangdong Luqiao Construction|2,435.71||270.72||
||||Development Co., Ltd.|||||
||Other Payable account||Zhaoqing Yuezhao Highway Co., Ltd.||2,388.80|||
|Other Payable account|||Guangdong Two Guang Expressway|1,603.02||||
||||Co., Ltd.|||||
|Other Payable account|||Guangdong Luoyang Expressway Co.,|1,202.48||||
||||Ltd.|||||
||Other Payable account||Shenzhen Huiyan Expressway Co., Ltd.||946.81|||
||Other Payable account||Heyuan Helong Expressway Co., Ltd.||896.89|||
||Other Payable account||Guangdong Boda Expressway Co., Ltd.||408.23|||
||Other Payable account||Guangdong Hehui Expressway Co., Ltd.||216.43|||
||Dividend payable||Xinyue Highway Construction Co., Ltd.||12,500,000.00|||
||Non current liabilities due|Ganzhou Gankang Expressway Co.,Ltd.||||50,000,000.00||
||within one year|||||||

XIII. Stock payment
1. The Stock payment overall situation
□ Applicable√ Not applicable
2. The Stock payment settled by equity
□ Applicable√ Not applicable
3. The Stock payment settled by cash
□ Applicable√ Not applicable
4. Modification and termination of the stock payment
Nil
5.Other
Nil
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report XIV. Commitments
1. Significant commitments
Significant commitments at balance sheet date
On June 15, 2016, theCompany’s 29th meeting (Provisional) of the seventh board of directors was convened. In the meeting, the Proposal on Increasing Funding for Guangdong Fokai Expressway Co., Ltd pertaining to the Renovation and Expansion Project of Sanbao-to-Shuikou Section of Shengyang-to-Haikou National Expressway was examined and approved, agreed that based on the approved total investment amount by relevant government department, then thecompany’s subsidiary- Guangdong Fokai Expressway Co., Ltd carries out the investment and construction of the renovation and expansion project of Sanbao-to-Shuikou Section of Shengyang-to-Haikou National Expressway; the company increases funding for Guangdong Provincial Fokai Expressway Co., Ltd pertaining to the renovation and expansion project of Sanbao-to-Shuikou Section of Shengyang-to-Haikou National Expressway, with the contributed funds as a proportion of35% of the total investment amount approved by relevant government department. The afore-said item had been examined and approved in the first extraordinary general shareholder meeting, The Company had received the approval of the National Development and Reform comission about the uandongProvincial Santbao-Shuikou Expressway Section Rebubuilding and Expansion Project(NO.1874-2016-NDRC Infrastructure Document)from Guangdong Provincel Development and reform Commission On October 11, 2016, agreed with the implementation of the Guangdong Provincial Sanbao-Shuikou Expressway Section Rebuilding and Expansion Project.It’s estimated that the total investment of this project is about RMB 3.513 billion(the static investment is about RMB 3.289 billion), of which the project capital is RMB 1.23 billion that accounts for35% of the total investment and such amount of the project capital will be provided by Guangdong Provincial Fokai Expressway Co., Ltd, and the rest amount of RMB 2,283 billion will be solved by using bank loans. According to the "Official Reply to the preliminary design of reconstruction and extension project of Guangdong Sanbao to Shuikou Road by Ministry of Transport" (No.73-2017 Transport Road Document) issued by Guangdong Provincial Department of Transport, the Ministry of Transport checked and ratified that the general estimate of the preliminary design of reconstruction and extension project of Guangdong Sanbao to Shuikou Road is RMB 3.426 billion. As of December 31, 2017, The accumulated expenses occurred of Guangdong Fokai Expressway Co.,Ltd was RMB 726.6538 million.
2. Contingency
(1) Significant contingency at balance sheet date
This matter. did not occur in this accounting period.
(2) The Company have no significant contingency to disclose, also should be stated
There was no significant contingency in the Company.
XV. Enents after balance sheet date
1. Significant events had not adjusted
Nil
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report 2.Profit distribution
In RMB
|||
|-|-|
|Profits or dividends to be distributed|1,057,947,899.76|
|Profits or dividends declared to issue after examination|1,057,947,899.76|

 3.Sales return
Nil
4.Notes of other significant event after balance sheet date
Nil l
XVI.Other significant events
1.The accounting errors correction in previous period
This matter. did not occur in this accounting period. During the reporting period.
2.Debt restructuring
This matter. did not occur in this accounting period. During the reporting period.
3.Replacement of assets
（1）Non-monetary assets exchange
Nil
（2）Replacement of other assets
Nil
4.Pension plan
The company does not disclose the pension plan undisclosed matter should exist.
5.Discontinuing operation
This matter. did not occur in this accounting period. During the reporting period,.
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report 6. Segment information
The company's business for the Guangfo Expressway , the Fokai Expressway and Jingzhu Expressway Guangzhu Section toll collection and maintenance work, the technology industry and provide investment advice, no other nature of the business, no reportable segment.
7.Other important transactions and events have an impact on investors decision-making
(1)The toll collection period of Jiujiang Bridge of No. 325 National Highway owned by Jiujiang Bridge Branch of Guangdong Fokai Expressway Co., Ltd., a controlled subsidiary of the Company, which was approved by Ministry of Communications, is 30 years. Up to the present, the accumulative toll collection period is 25 years. According to the Notice of Relevant Matters Concerning Quickening Special Clearing of Toll Highways in Guangdong Province (Yue Jiao Ming Dian (2013) No. 56 Document), the rectification measure proposed for Jiujiang Bridge is "toll collection period shall be no more than 20 years". The result of rectification is "toll collection shall be cancelled due to the expiration of toll collection period." As required by this document, Jiujiang Bridge will stop toll collection from 24:00 of June 30, 2013. Jiujiang Bridge is a construction project in which an enterprise under provincial administration invested. As for relevant problems occurred after rectification, the Provincial State-owned Assets Commission shall coordinate in handling such problems according to the requirements of the document.
In view of the cancellation of tolls, the relevant assets on Jiujiang Bridge are neither owned or controlled by the company, nor brings any economic benefits to enterprise in future. According to the provision of Accounting Standards, the company has made disposal of the assets at the end of 2013, and the relevant losses have been recorded into the annual expenses outside of operation in 2013.
In May 2014, the company received Guangdong Provincial People's Government Office documents on the opinions of the compensation for cancellation fee of Jiujiang Bridge as follow. The loss to the company resulted from the early cancellation of Jiujiang Bridge toll fee will be compensated by Guangdong Communication Group. The provincial SASAC conjunction with relevant units will examine the compensation amount base on Provincial Legal Office; work with Provincial Department of Finance to make the compensation arrangements for provincial government to approve.
Approved by the Jiujiang Bridge early termination fee the amount of loss caused to 140,765,667.68 yuan, to be divided from 2015 included three years of state-owned capital management budget arrangements. In view of the recovery period is not yet clear, the company intends to recognized operating income when received.
Fokai Expressway Co., Ltd. had received in advance of Jiujiang Bridge cancellation fees compensate for the loss of funds RMB 20 million, 60.77 million and 59.9957 million on August 7, 2015 , June 16, 2016 and June 29,2017, the extra operating income the company has confirmed.
(2)June 15,2007 early in the morning, The 325 Jiujiang Bridge collapsed on# 23 pier for―Nanguijii035# collision owned by the controlling subsidiary of the company Guangdong Fokai Expressway Company leads the collapse and the traffic jam of 200 meters long of the Jiujiang Bridge. On June 10, 2009, Jiujiang Bridge opened to traffic has been restored.
On June19,2007， The Ministry of Communications, the State Production Safety Supervision and Administration Commission issued the JiaoAnWeiming File[2007] No. 8 "Notification on the Guangdong"6.15 "Jiujiang Bridge Collision Accident", initially determined the causes of the accident are: the incident ship
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report suddenly met heavy fog on the way from Foshan Gaoming to Sunde, the captain neglected looking out, did not take proper measures and deviated from the main channel, touched the 325 National Road Jiujiang Bridge the non-navigation bridge pier and caused the collapsion of part of the Jiujiang bridge. The accident was an uNilateral responsibility of the ship.
On July19,2007，Fokai Company applied preservation of property to Guangzhou Maritime Court.On August22,2007，Fokai Company officially prosecuted to Guangzhou Maritime Court, asking Foshan South Sea Shipping Company Limited and Yang Xiong to undertake the conpensation 25,587,684 yuan for the loss caused by collapsion of Jiujiang Bridge. On August 28, 2007, Guangzhou Maritime Court accepted the case. According to the (2007)-Canton Haifa No. 332 ruling book issued by Guangzhou Maritime Court, the proceeding of the case was suspended.
After the court accepted the case, the incident investigation team of Guangdong Provincial Government had not made the final report of Jiujiang Bridge accident. The Court, on November 5, 2007, decided to suspend the proceeding. In September 2008, Jiujiang Bridge accident investigation report was officially reported and resumed the proceedings. On December 5, 2008, Guangzhou Marine Court opened a court trial to procceeded the case. Currently, Guangzhou Haizhu prosecutorial office was intend to prosecute the accident captain Shi Guide, therefore, on January 5, 2009, Guangzhou Maritime Court ruled the suspension of the case. On September 17, 2013, the Guangzhou Maritime Court issued a notice of civil and eliminate the cause of suspension of proceedings, the court decided to resume the trial. On December 19, 2013, the Guangzhou Maritime Court opened a court session, has not yet made the first-instance judgment. On March 7, 2014 the Court made the first instance verdict: the defendant Foshan Nanhai Yuhang ship Services Co., Ltd. and Yang Xiong compensated the plaintiff Fokai Expressway Co., Ltd. toll revenue losses of RMB 19,357,500.96; the court dismissed the plaintiff other aspirations. The defendant appealed to the Higher People's Court of Guangdong Province, the Guangdong Provincial Higher People's Court ruled on June 5, 2014, the case discontinued proceedings. By the end of the report period, the abatement of action causes are already removed and the provincial higher court restores the hearing and conducts the investigation on April 21, 2017.
(3)The 26th (Provisional)Meeting of the sixth board of directors of Guangdong Provincial Expressway Development Co., Ltd. was held of May 10, 2012. The meeting examined and adopted the proposal Concerning theCompany’s Accepting the insurance Bond Investment Plan of Pacific Asset Management Co., Ltd. The Company was approved to accept the insurance bond investment plan made by Pacific Asset Management Co., Ltd. The amount of proceeds to be raised is not more than RMB 1.5 billion . Floating interest rate plus guaranteed base interest rate applies as the interest rate. The Floaing interest rate shall not exceed the basic interest rate of RMB loan with a term of over five years on the day when the investment fund of the insureance company is transferred into theCompany’s account and the corresponding days of the future years, which shall be adjusted once each year. The guaranteed base interest rate is5.6%. The concrete amount of raised proceeds shall be within maximum limit of investment fund filed with CIRC. The actual amount wholly transferred to the Company shall apply. The final interest rate is subject to investment Contract for Bond Investment Plan between Pacific and Guangdong Expressway Filed with CIRC. It was approved to authorize the management of the Company to implement the above-mentioned matters.
The Company was approved to provide counter guarantee to Guangdong Communication Group Co.,Ltd.with75% equity of Guangdong Fokai Expressway Co., Ltd. Held by it . as of December 31, 2016, the company has borrowed RMB 1.5 billion.
⑷In accordance with YWJMZZ[2001] No. 547 Reply about the Guangfo Expressway Co., Ltd. Capital
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report Increase and Change into Chinese-Foreign Cooperative Enterprise and Others issued by Department of Foreign Trade and Economic Cooperation of Guangdong, the cooperation term for Guangfo will terminate on July 31, 2017. GuangdongPeople’s Government issued GuangdongPeople’sGovernment’s Reply on the Charging Period for Guangfo Expressway Reconstruction and Expansion Project (YFH[2016] No.156) on June 3, 2016, and agreed to approve that the charging period for Guangfo Expressway reconstruction and expansion project would be from the date completion and opening for traffic to December 7, 2021. In accordance with the Reply to ForeignShareholders’ Proposal on Extending the Cooperation Period with Guangfo Expressway Co., Ltd.(YJJT[2017]No. 50) by Guangdong Traffic Group Co., Ltd. on April 7, 2017, it agrees on the cooperation period extent to December 7, 2019 of Guangfo Expressway Co., Ltd. subject to the existedshareholder’s structure. On June 27, 2017, Guangfo Expressway Co., Ltd. makes a resolution in the
9th
Session of the
8th
Board of Directors, which specifies the cooperation period extent to December 7, 2019 subject to the existedshareholder’s structure. Guangfo Expressway Co., Ltd. handles the industrial and commercial registration of changes on July 6, 2017 and the road property with the depreciation subject to the traffic flow is accrued sufficiently in February 2017. The cooperation period change of Guangfo Expressway Co., Ltd. has non influence on the company business performance.
⑸On February 5, 2016, the company received the 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(CSRC No.230-2016 Zheng Jian Xu ke) issued from CSRC; thecompany’s scheme on share-issuance for purchasing assets and raising matching funds had been examined and approved by the Audit Committee of CSRC on Verifying and Approving Mergers, Acquisitions and Restructuring of Listed Companies. The company has completed asset restructuring in June 2016.
During the profit compensation period, in the case that the actual profits of the underlying company were less than the committed profits, respectively the counterparts of Guangdong Provincial Expressway Co., Ltd and Guangdong Provincial Highway Construction Co., Ltd shall assume the obligation of compensation for the profit difference according to their equity proportion of Guangdong Provincial Fokai Expressway Co., Ltd and Guangzhou Guangzhu Traffic Investment Management Co., Ltd. The profit compensation period is three years from 2016-2018.
Agreed by the company and Guangdong Provincial Expressway Co., Ltd, the profits of Fokai Expressway Co., Ltd in year-2016, year-2017 and year-2018 by estimation shall accordingly be RMB 250.6973 million, RMB 260.0802 million and RMB 403.1197 million, with the aggregated non-recurring gains and losses were expected to be RMB 105.5743 million. During the compensation period, in the case that the cumulative net profits of Fokai Expressway Co., Ltd in a certain year realized at the end of the year are less than the estimated cumulative net profits of the year, the company will, at the price of RMB1.0 per share, buy-back the shares calculated in accordance with the agreement for the purpose of compensation and those shares will be written off, and if the amount of compensation exceeds the consideration of those shares being bought-back, Guangdong Provincial Expressway Co., Ltd will compensate that part in cash. At the expiration of the compensation period, if the accumulative actual non-recurring gains and losses (referring to thegovernment’s compensation to Guangdong Provincial Fokai Expressway Co., Ltd due to the cancellation of toll charge of Jiujiang bridge, hereinafter shortly named as “Jiujiang Bridge Compensation”) of Fokai Expressway Co., Ltd were less than the estimated accumulative non-recurring gains and losses, Guangdong Provincial Expressway Co., Ltd will, upon the basis of the stake proportion held by G Fokai Expressway Co., Ltd before the major asset restructuring, compensate in cash to the company in accordance with the agreement; If it is after the expiration of the compensation period, every time when Fokai Expressway Co., Ltd received Jiujiang Bridge Compensation, the company should refund the corresponding part which had been paid by Guangdong Provincial Expressway Co., Ltd for the compensation
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report in accordance with the agreement to Guangdong Provincial Expressway Co., Ltd within 30 working days started from the date G Fokai Expressway Co., Ltd received such compensation.
Agreed by the company and Guangdong Provincial Highway Construction Co., Ltd, the profits of Guangzhou Guangzhu Traffic Investment Management Co., Ltd in year-2016, year-2017 and year-2018 by estimation shall accordingly be RMB 230.3606 million, RMB 263.2329 million and RMB 286.5018 million. During the compensation period, in the case that the cumulative net profits of Guangzhou Guangzhu Traffic Investment Management Co., Ltd realized at the end of the year are less than the estimated cumulative net profits of the year, the company will, at the price of RMB1.0 per share, buy-back the shares held by Guangdong Provincial Highway Construction Co., Ltd with the quantity being calculated upon the agreement for compensation and those shares will be written off.
Guangdong Fokai Expressway Co., Ltd. in 2016 the actual profit (excluding non-) by RMB 286.1655 million, more than the commitment to profit more than RMB 35.4682 million; Guangzhou Guangzhu Traffic Investment Management Co., Ltd. 2016 annual profit of RMB 271.7759 million, More than the commitment to profit more than RMB 41.4153 million. 2017 annual profit of RMB 321.5.34 million, More than the commitment to profit more than RMB 58.2705 million.
⑹On July 15, 2016, the company received the writing notice from Yadong Fuxing Investment Co.,Ltd-one of thecompany’s shareholders. Yadong Fuxing had signed the Financing Agreement by Pledging A-shares of Guangdong Provincial Expressway Development Co.,Ltd with Guotai Junan Securities Co., Ltd, of which Yadong Fuxing pledged 202,429,000 shares that account for9.68% of thecompany’s total share capital to Guotai Junan Securities Co., Ltd, which was mainly for the enterprise financing, with the pledge period started from July 13, 2016.
As of the date this financial report was approved for disclosure, Yadong Fuxing Company holds 202,429,149 A-shares of the company that account for9.68% of thecompany’s total share capital, of which 202,429, 000shares-9.68% of thecompany’s total share capital were pledged, and the pledged shares account for99.99993% of the total shares of the company held by Yadong Fuxing.
⑺The 15th (temporary) meeting of the Eighth Board of Directors, which was held on December 29, 2017, reviewed and approved the Proposal of Matters Relevant to the Zhuhai Municipal People's Government's
Taking-back of Guangdong-Macao Expressway Zhuhai Section's 4.213 km Expressway Asset with Compensation and Asset transfer"; agreed that Zhuhai High-tech Zone Management Committee uses RMB 206 million of compensation (excluding the relevant taxes and fees, and the taxes and fees compensation subjecting to the actual amount of payment) to take back the Guangdong-Macao Expressway Zhuhai Section's 4.213 km (Pile Number K0+945-K5+158)Expressway Asset; and agreed that Beijing Zhuhai Expressway Guang Zhu Section Co., Ltd-the company's holding subsidiary-shall, after performed the relevant decision-making procedures, enter into the Compensation and Asset Transfer Agreement with Zhuhai High Tech Zone Management Committee.
On January 31, 2018, Beijing Zhuhai Expressway Guang Zhu Section Co., Ltd received the first
compensation of RMB 100 million from Zhuhai High-tech Zone Management Committee. In light of the fact that the Zhuhai MunicipalPeople’s Government has not yet completed the matter of asset compensation and asset transfer of Guangdong-Macao Expressway Zhuhai Section, the gains and losses of this compensation is not recognized for the time being.
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report XVII..Notes s of main items in financial reports of parent company
1.Account receivable
（1）Account receivable classified by category
In RMB
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Classification|||Year-end balance||||||Year-beginning||||||
|||Book balance|||Provision for bad debts||Book value|Book balance||||Provision for bad||Bookvalue|
|||||||||||||debts|||
|||Amount||Proportion(%)|Amount|Proportion(%)||Amount||Propor|Amount||Propor||
|||||||||||tion(%|||tion(%||
|||||||||||)|||)||
||Account receivable with single major amount and|19,001,899.29||100.00%|||19,001,899.29||||||||
||withdrawal bad debt provision for single item||||||||||||||
||Total||19,001,899.29||||19,001,899.29|||||||0.00|

 - Receivable accounts with large amount individually and bad debt provisions were provided
√Applicable□Not applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
|Name||Year-end balance|||||
|||Receivable|Bad debt|Proportion|Reason||
|||accounts|provision||||
|Guangdong Union ElectronicServices Co., Ltd.|19,001,899.29|||||Been recovered after the peri|
|||||||od|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
|||||
|-|-|-|-|
|Total|19,001,899.29|--|--|

Account receivable on which bad debt provisions are provided on age basis in thegroup：
□ Applicable√ Not applicable
In the groups, accounts receivable adopting balance percentage method to withdraw bad debtprovision：
□ Applicable√ Not applicable
In the groups, accounts receivable adopting other methods to accrue bad debtprovision:：
Nil
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report（2）Accrual period, recovery or reversal of bad debts situation
Nil
（3）The current accounts receivable write-offs situation
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 ServicesCo., Ltd|19,001,899.29|Within 1 year|100.00||
|Total|19,001,899.29|--|||

（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
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report 2.Other accounts receivable
(1) Other accounts receivable disclosed by category
In RMB
|||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Type|||Balance in year-end|||||||||Balance in year-end||||||||
||||Book Balance||||Bad debt provision|||Book value||Book Balance||||Bad debt provision|||Book value|
|||Amount|Amount||Proportio|Amount|Amount||Proporti||Amount|Amount||Proporti|Amount|Amount||Proportio||
||||||n(%)||||on(%)|||||on(%)||||n(%)||
||Other Account receivable with|32,084,893.35||82.44%||32,084,893.35||100.00%|||32,084,893.35||89.20%||32,084,893.35||100.00%|||
||single major amount and|||||||||||||||||||
||withdrawal bad debt provision for|||||||||||||||||||
||single item|||||||||||||||||||
||Other Account receivable|6,832,189.43||17.56%||1,533,987.26||22.45%||5,298,202.17|3,884,252.50||10.80%||1,533,987.26||39.49%||2,350,265.24|
||withdrawal bad debt provision|||||||||||||||||||
||by group of credit risk|||||||||||||||||||
||characteristics|||||||||||||||||||
||Other Account receivable with no|||||||||||||||||||
||single major amount and|||||||||||||||||||
||withdrawal bad debt provision for|||||||||||||||||||
||single item|||||||||||||||||||
|Total||38,917,082.78||100.00%||33,618,880.61||86.39%||5,298,202.17|35,969,145.85|||100.00|33,618,880.61||93.47%||2,350,265.24|
|||||||||||||||%||||||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report Other Receivable accounts with large amount individually and bad debt provisions were provided
√Applicable□Not applicable
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Name||Balance at year-end||||||
|||Balance atyear-end|Provision for bad debts|Proportion%||Reason||
|Kunlun Securities Co., Ltd.||Otherreceivable|Provision for bad debts|Proportion%||Reason||
||Total|32,084,893.35|32,084,893.35||--||--|

Notes1：For the balance amount of ourcompany’s secutity trading settlement funds RMB 33,683,774.79 deposited in Kunlun Securities Co., Ltd., TheXin’Ning Municipal intermediatePeople’s Court of Qinghai Province had made the judgment in accordance with the law and declared on November 11, 2006. that Kunlun Securities Co., ltd. was bankrupted for debt payment . In March of 2007, the liquidating group of Kunlun Securities preliminary judged the relationship between our company and Kunlun Securities Co., Ltd.is debtor creditor relationship . as Kunlun Securities Co., Ltd.was bankrupted for debt payment and it is in serious
insolvency. Our company had moved the security trading settlement funds deposited in Kunlun Securities Co., Ltd, to other receivables account for reflection, we also have made full amount provision for had debts based on conservatism principle. The recovered debt amount in 2008 is RMB485,392.67 which had been offset from the provision for bad debts. The recovered debt amount in 2011 is RMB 667,959.27 which had been offset from the provision for bad, The recovered debt amount in 2014 is RMB 445,529.50 which had been offset from the provision for bad debts.debts.
In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
√Applicable□Not applicable
In RMB
||||||
|-|-|-|-|-|
|Aging||Balance at year-end|||
|||Other receivable|Provision for bad debts|Proportion%|
||Subitem within 1 year||||
||Subtotal within 1 year|2,925,574.59|||
||1-2 years|||10.00%|
||2-3 years|||30.00%|
||3-4 years|||50.00%|
||4-5 years|||90.00%|
||Over 5 years|1,533,987.26|1,533,987.26|100.00%|
||Total|4,459,561.85|1,533,987.26|34.40%|

 Notes
Refer to "Notes 5 the financial statements of the important accounting policies and accounting estimates
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 withdraw bad debt provision:
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report√ Applicable□Not applicable
||||||||
|-|-|-|-|-|-|-|
|Name||Balance at year-end|||||
||Other receivable|Other receivable|Bad debt|Proportion（%）|Reason|Reason|
||||provision||||
|Quality guarantees fund|1,909,135.70||||Deposit||
|Other|463,491.88||||Current account||
|Total|2,372,627.58||||||

（2）Accrual period, recovery or reversal of bad debts situation
The current amount of provision for bad debts is RMB0.00; recovery or payback for bad debts Amount is RMB 0. 00.
Where the current bad debts back or recover significant amounts:Nil
(3) The actual write-off other accounts receivable:Nil
(4) Other accounts receivable classified by the nature of accounts
In RMB
||||||
|-|-|-|-|-|
|Nature||Closing book balance||Opening book balance|
|Securities trading settlement funds balance||32,084,893.35||32,084,893.35|
|Guarantee deposit||1,929,135.70||1,829,187.00|
|Pretty cash||1,505,100.00|||
|Advertising and service fee||203,133.13|||
|Other||3,194,820.60||2,055,065.50|
|Total|38,917,082.78||35,969,145.85||

 (5) Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Name||Nature||Closingbalance||Aging|||Proportion of the|Closing balance ofbad debt provision|
||||||||||total year end||
||||||||||balance of the||
||||||||||accounts||
||||||||||receivable(%)||
|Kunlun Securities Co.,Ltd|||Securities tradin|32,084,893.35||Over 5years||82.44%||32,084,893.35|
||||g settlement fun||||||||
||||ds||||||||
||Guangdong Litong Real||Deposit||1,505,864.00||Within 5||3.87%||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||estateInvestment Co., Ltd.||||||years|||||
|Pretty cash||Pretty cash||1,505,100.00|||Within|3.87%||||
||||||||1year|||||
||Heshan Communication Real|Current account||1,470,000.00|||Over 5|3.78%||1,470,000.00||
||estate Development Company||||||years|||||
||Guangdong Expressway|Management fee||466,697.78||2-3 years||1.20%||||
||Co.,Ltd.|||||||||||
||Total||--||37,032,555.13||--||95.16%||33,554,893.35|

 (6) Accounts receivable involved with government subsidies: Nil
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets: Nil (8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts receivable
Nil
Other notes
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report 3. Long- term s equity investment
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Items|||Year-end balance||||Year-beginning balance||||
||||Book balance|Bad debt provision||Book value|Book balance|Bad debt provision||Book value|
||Investment to the|5,169,662,219.66|||5,169,662,219.66||5,165,162,219.66||5,165,162,219.66||
||subsidiary||||||||||
||Investment to joint ventures|3,047,275,000.00|||3,047,275,000.00||2,220,805,130.31||2,220,805,130.31||
||and associated enterprises||||||||||
||Total||8,216,937,219.66||8,216,937,219.66||7,385,967,349.97||7,385,967,349.97||

（1）Investment to the subsidiary
In RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Name||Opening balance||Increase|Decrease|Closing balance||Withdrawn impairment|Closing balance ofimpairment provision|
|||||||||provision in the reporting||
|||||||||period||
||Guangfo Expressway Co., ltd.||154,982,475.25||||154,982,475.25|||
||Guangdong Expressway Technology|95,731,882.42||||95,731,882.42||||
||Investment Co., Ltd.|||||||||
||Guangdong Fokai Expressway Co., Ltd.||3,635,997,210.85||||3,635,997,210.85|||
||Guangzhou Guangzhu Traffic Investment|859,345,204.26||||859,345,204.26||||
||Management Co., Ltd.|||||||||
||Jingzhu Expressway Guangzhu Section|419,105,446.88||||419,105,446.88||||
||Co., Ltd.|||||||||
||Yuegao Capital Investment (Hengqin)|||4,500,000.00||4,500,000.00||||
||Co., Ltd.|||||||||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
|||||
|-|-|-|-|
|Total|5,165,162,219.66|4,500,000.00|5,169,662,219.66|

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report（2）Investment to joint ventures and associated enterprises
In RMB
|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Name||Opening balance|||Increase /decrease in reporting period||||||||||Closing balance||Closing|
|||||Add investment||||Adjustmentof othercomprehensiveincome|Other equitychanges||Declaration ofcash dividendsor profit||Withdr|Other|||balance|
||||||||||||||awn||||of|
||||||||||||||impair||||impairm|
||||||||||||||ment||||ent|
||||||||||||||provisi||||provisio|
||||||||||||||on||||n|
||I. Joint ventures|||||||||||||||||
||Guangdong Guanghui|963,806,710.36||||282,006,496.89|||1,200,000.00||297,106,373.29||||949,906,833.96|||
||Expressway Co., Ltd.|||||||||||||||||
||ZhaoqingYuezhao|298,347,974.37||||48,730,821.40|||||55,172,678.59||||291,906,117.18|||
||Highway Co., Ltd.|||||||||||||||||
||Subtotal||1,262,154,684.73||||330,737,318.29|||1,200,000.00||352,279,051.88||||1,241,812,951.14||
||II. Associated enterprises|||||||||||||||||
||Shenzhen Huiyan|162,435,484.69||||33,761,713.52|||||||||196,197,198.21|||
||Expressway Co., Ltd.|||||||||||||||||
||Guangdong Jiangzhong|173,505,923.37||||11,038,071.84|||||11,041,691.10||||173,502,304.11|||
||Expressway Co., Ltd.|||||||||||||||||
||Ganzhou Kangda|204,137,265.86||||25,170,250.23|||461,406.77||21,000,000.00||||208,768,922.86|||
||Expressway Co., Ltd.|||||||||||||||||
||Ganzhou Gankang|210,007,188.89||||3,997,514.46|||||9,600,000.00||||204,404,703.35|||
||Expressway Co., Ltd.|||||||||||||||||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Guangdong Yueke|208,564,582.77||||13,042,538.35|||||6,058,788.22||215,548,332.90||
|Technology Petty Loan||||||||||||||
|Co., Ltd.||||||||||||||
|Guoyuan Securities|||799,999,959.30||6,193,038.76||847,589.37|||||807,040,587.43||
|Co.,Ltd.||||||||||||||
|Subtotal||958,650,445.58||799,999,959.30||93,203,127.16||847,589.37|461,406.77||47,700,479.32||1,805,462,048.86|
|Total|2,220,805,130.31|||799,999,959.30||423,940,445.45||847,589.37|1,661,406.77||399,979,531.20|3,047,275,000.00||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report 4. Business income and Business cost
In RMB
|||||||
|-|-|-|-|-|-|
|Items||Amount of current period||Amount of previous period||
|||Revenue|Cost|Revenue|Cost|
||Main business|553,779,699.47|330,893,919.46|||
||Other|80,104,649.29|4,015,303.85|51,258,350.04|464,213.40|
||Total|633,884,348.76|334,909,223.31|51,258,350.04|464,213.40|

 Other notes The substantial increase in the main business income of the parent company in the current period is due to the absorption and merger of the Fokai Company and the accounting of the branch business in the parent company since August 1, 2017.
5.Investment income
In RMB
||||||
|-|-|-|-|-|
|Items||Amount of current period||Amount of previous period|
||Long-term equity investment income accounted|1,095,070,873.20|406,678,366.43||
||by cost method||||
||Long-term equity investment income accounted|423,940,445.45|429,826,747.82||
||by equity method||||
||Investment income received from holding of|24,327,921.74|45,878,955.51||
||available-for –sale financial assets||||
||Total|1,543,339,240.39|882,384,069.76||

 XVIII. Supplement information
1. Particulars about current non-recurring gains and loss
√ Applicable□Not applicable
In RMB
|||||
|-|-|-|-|
|Items||Amount|Notes|
|Gains/losses from the disposal of non-current|-2,745,683.68|||
|asset||||
|Governmental subsidy calculated into current|385,932.17|||
|gains and loess（while closely related with the||||
|normal business of the Company, excluding||||
|the fixed-amount or fixed-proportion||||
|governmental subsidy according to the unified||||
|national standard）||||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report
||||||
|-|-|-|-|-|
|Other non-business income and expendituresother than the above||61,458,075.96||It receives the compensation|
|||||59,995,667.68 yuan for early termination|
|||||of charging for Jiujiang Bridge in the|
|||||current period|
|Less ：Influenced amount of income tax||-178,668,186.37||The department confirms the deferred|
|||||income tax totaling 193.4147 million|
|||||yuan for losses of previous years in the|
|||||current period|
||Amount of influence of minority interests||-162,437.83||
||Total||237,928,948.65|--|

For theCompany’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
2. Return on equity (ROE) and earnings per share (EPS)
||||||||
|-|-|-|-|-|-|-|
|Profit as of reporting period||Weighted average ROE (%)||EPS（Yuan/share）|||
|||||EPS-basic||EPS-diluted|
||Net profit attributable to common|17.69%|0.72||0.72||
||shareholders of the Company||||||
||Net profit attributable to common|14.90%|0.61||0.61||
||shareholders of the Company after||||||
||deduction of non-recurring profit||||||
||and loss||||||

Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report standards, for audit data adjusting differences had been foreign audited, should indicate the name of the
foreign institutions
Nil
4.Other
Nil
Guangdong Provincial Exppressway Development Co., Ltd. 2017 Annual Report XII. Documents Available for Inspection
1. Accounting statements carried with personal signatures and seals of legal representative, Chief Financial officer and Financial Principal.
2. Original ofAuditors’ Report carried with the seal of Certified Public Accountants as well as personal signatures of certified Public accountants.
3. The texts of all the Company's documents publicly disclosed on the newspapers and periodicals designated by China Securities Regulatory Commission in the report period.