CONTENTS

2 Five Years Financial Summary 3 Financial Highlights 4 Corporate Profile 6 Location Maps of Projects 14 Chairman’s Statement 20 Management Discussion and Analysis 49 Investor Relations Report

51 Directors’ Profiles 54 Corporate Governance Report 66 Report of the Directors 73 Independent Auditor’s Report 78 Consolidated Income Statement 79 Consolidated Statement of Comprehensive Income 80 Consolidated Balance Sheet 82 Consolidated Statement of Cash Flows 83 Consolidated Statement of Changes in Equity 85 Notes to the Consolidated Financial Statements 176 Corporate and Investor Relations Information 2016 2016 2016 40.0% 49.9% 10.12% 918,817 247,660 5.8 times RMB5.43 2,519,003 2,356,181 1,520,564 1,166,477 9,081,958 2,222,344 22,568,556 11,264,254 11,304,302 RMB0.2885 RMB0.5491

2017 2017 2017 36.0% 9.93% 50.6% 947,942 319,280 8.4 times RMB5.70 2,702,844 2,722,179 1,638,417 1,267,222 9,544,848 2,272,556 23,918,489 12,101,085 11,817,404 RMB0.2970 RMB0.5666

2018 2018 2018 29.6% 45.4% 10.47% 357,546 8.2 times RMB6.02 2,847,073 2,855,785 1,891,655 1,411,681 1,054,135 2,335,708 22,739,750 10,332,171 12,407,579 10,071,871 RMB0.3375 RMB0.6300

2019 2019 2019 55.4% 63.0% 10.76% 457,453 7.6 times RMB6.32 3,023,221 2,956,565 1,900,445 1,595,043 1,137,590 3,057,095 36,797,875 23,169,125 13,628,750 10,571,655 RMB0.3500 RMB0.6799

2020 2020 2020 1.54% 54.3% 62.5% 160,491 243,845 682,421 404,336 RMB6.23 3.1 times 2,919,838 2,452,006 3,228,854 36,367,600 22,713,855 13,653,745 10,424,891 RMB0.0959 RMB0.0584

3 1 ) ” EBITDA “ 2 000) 000) ’ ’ Return on equity attributable of the Company to shareholders EBITDA Interest Coverage Gearing ratio Total liabilities/Total assets ratio Total Equity Equity attributable to: Shareholders of the Company Non-controlling interests Net assets per share to of the Company shareholders Total Assets Total Liabilities Basic earnings per share for profit attributable to the shareholders of the Company Dividend per share amortisation ( tax Profit before income Profit for the year Profit attributable to: Shareholders of the Company Non-controlling interests Income from operations Earnings before interests, tax, depreciation and (RMB (RMB FIVE YEARS FINANCIAL SUMMARY FINANCIAL FIVE YEARS YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 2: net debts÷total capitalization 3: total liabilities÷total assets 1: EBITDA includes profit from associates and joint venture, but excludes non-cash gains and losses. FINANCIAL RATIOS Year ended 31 December As at 31 December BALANCE SHEET Year ended 31 December INCOME STATEMENT

Annual Report 2020 2 3 Annual Report 2020 percentage point * 85.9% 1.4% 13.2

Profit attributable to shareholders of the company RMB160 million Net assets per share RMB6.23 Gross Margin 53.4% YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU FINANCIAL HIGHLIGHTS FINANCIAL 64.1% 1.2% 22.5% Total Assets RMB36.4 billion Profit before income tax RMB682 million Gross Profit RMB1,559 million 85.9% 30.3% 3.4% Earnings per share RMB0.0959 RMB1,337 million Operating Profit Revenue RMB2,920 million * Gross Margin = Gross profit/Revenue RESULTS HIGHLIGHTS FOR 2020 RESULTS HIGHLIGHTS % * * associates and joint venture

• in page 22. ’ 45% 30% 35% 60% 100% s profit sharing ratio in Humen Bridge and s profit sharing ratio in Humen Bridge and 44.2 ’ 27.78% 90% subsidiaries

Business Review Jinxiong Expressway could be referred to notes of Jinxiong Expressway could be referred to notes of ‘ ■ 67% 100% * * The Group % e Expressway ’ GNSR Expressway Cangyu Expressway Jinxiong Expressway Han-Xiao Expressway Changzhu Expressway 100% Weixu Expressway 60% Suiyuenan Expressway 100% 100% Hancai Expressway Han Daguangnan Expressway 70% Pazhou Port Northern Ring Road Humen Bridge Shantou Bay Bridge GWSR Expressway 24.3% Qinglian Expressway 23.63%

55.8 • ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ • • • • • 100% PUBLIC EXPRESSWAY / BRIDGE / PORT 廣州越秀集團股份有限公司 YUEXIU TRANSPORT INFRASTRUCTURE LIMITED YUEXIU TRANSPORT INFRASTRUCTURE YUE XIU ENTERPRISES (HOLDINGS) LIMITED YUE XIU ENTERPRISES (HOLDINGS) GUANGZHOU YUE XIU HOLDINGS LIMITED YUE XIU HOLDINGS GUANGZHOU CORPORATE PROFILE CORPORATE YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU

Annual Report 2020 4 5 Annual Report 2020 CORPORATE PROFILE CORPORATE ), ), ” YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU e Expressway e Expressway ’ Northern Ring Road Northern Ring “ s substantial shareholder, ’ ); Jinxiong Expressway in Tianjin ) and its subsidiaries (collectively, ” s associates and joint venture is s associates and joint venture is ” ’ s Government. ’ ), Shantou Bay Bridge and Guangdong and Bridge Bay Shantou ), ” ). The Company Company ” “ PRC “ ), Guangzhou Western Second Ring Expressway ), Guangzhou Western Second Ring Expressway ” Cangyu Expressway “ Humen Bridge Humen “ ), Guangzhou Northern Ring Road ( Road Ring Northern Guangzhou ), ” GNSR Expressway s Republic of China ( ’ “ ) of the Guangzhou Municipal People ) are principally engaged in investment, operation and management of toll ) are principally engaged in investment, ” ” s subsidiaries is approximately 455.1 km (total toll length is approximately approximately is length toll km (total 455.1 approximately is s subsidiaries ’ GWSR Expressway GWSR SASAC Group “ “ Group 533.7 km), attributable toll length of the Group approximately 77.3 km, the total attributable toll length of expressways and bridges is approximately 532.4 km. Qinglian Expressway, all of which are located within Guangdong Province; Han- Xiao Expressway, Suiyuenan Expressway, Hancai Expressway, Han Guangxi in Expressway Cangyu Province; Hubei in Expressway Daguangnan and Zhuang Autonomous Region ( Weixu Expressway and Province; Hunan in Changzhu Expressway Municipality; the in Henan Province. As at 31 December 2020, the attributable toll length of As at 31 December 2020, the Group had a total of 15 investments in its operating As at 31 December 2020, the Group had included Guangzhou Northern Second Ring expressways and bridge projects which Expressway ( ( ( Bridge Humen Guangdong “ Province and other high growth provinces expressways and bridges in Guangdong in the People the under enterprise state-owned a is Limited Holdings Xiu Yue Guangzhou and Administration Commission supervision of the State-owned Assets Supervision ( Yuexiu Transport Infrastructure Limited ( * * 45% 30% 35% 60% 100% 27.78% 90% 67% 100% e Expressway ’ GNSR Expressway Cangyu Expressway Jinxiong Expressway Han-Xiao Expressway Changzhu Expressway 100% Weixu Expressway 60% Suiyuenan Expressway 100% 100% Hancai Expressway Han Daguangnan Expressway 70% Pazhou Port Northern Ring Road Humen Bridge Shantou Bay Bridge GWSR Expressway 24.3% Qinglian Expressway 23.63%

• ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ • • • • • 10 1 8 5 3 9 2 6 4 7 LOCATION MAPS OF PROJECTS MAPS LOCATION YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU

Annual Report 2020 6 7 Annual Report 2020 Qinglian Expressway Shantou Bay Bridge Daguangnan Expressway Suiyuenan Expressway Shantou City Qingyuan City 9 10 YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU Jingzhou City Huanggang City 4 5 Northern Ring Road GWSR Expressway Pazhou Port GNSR Expressway Humen Bridge Cangyu Expressway Expressway Changzhu Hancai Expressway Han'e Expressway Han-Xiao Expressway Dongguan City Guangzhou City Wuzhou City

GUANGDONG 8 8 GUANGXI 7 Weixu Expressway Changsha City 6 HUNAN Wuhan City Jinxiong Expressway HUBEI 3 Xuchang City HENAN 2 Tianjin City 1 TIANJIN 10 1 8 5 3 9 2 6 7 4

NORTHERN RING ROAD EXPRESSWAY GNSR HUMEN BRIDGE a part of Guangzhou Ring Expressway, Guangzhou a part of Guangzhou Ring Expressway, Guangzhou section of Shenhai Expressway and Fukun section of and Superhighway with GS linking Highway, National Guangzhou Foshan Expressway. It is located within Guangzhou City with a toll It is located within Guangzhou City with a toll length of approximately 22.0 km with six lanes. It is Highway 114 and so on. km for toll length, with 10 flyovers in total. GNSR total. GNSR km for toll length, with 10 flyovers in Expressway, Expressway also connects with GWSR Guangqing Expressway, Airport Expressway, Guanghe G4 Expressway, Huanan Expressway, Expressway, Guanghui Expressway, GS Superhighway, GESR Expressway and Fenghuangshan Tunnel, Provincial 106, 324 and National Highway 105, It is a six-lane expressway of approximately 42.5 42.5 It is a six-lane expressway of approximately Expressway and GS Superhighway. It is a six-lane suspension highway bridge with a toll highway bridge with a toll It is a six-lane suspension Nansha km linking 15.8 length of approximately District of District of Guangzhou City and Humen the to connected are ends two Its City. Dongguan Yanjiang Guangzhou Macau Expressway, Guangshen LOCATION MAPS OF PROJECTS MAPS OF LOCATION GUANGDONG YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU

Annual Report 2020 8 9 Annual Report 2020 YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU LOCATION MAPS OF PROJECTS MAPS OF LOCATION SHANTOU BAY BRIDGE EXPRESSWAY GWSR QINGLIAN EXPRESSWAY s toll length is approximately 6.5 km with six ’ south, stretches over Shantou Harbour Huangsha south, stretches over Shantou Harbour Huangsha Bay Sea and connects with Shanfen Expressway. The project lanes. It is located in the eastern entrance of Shantou It is located in the eastern entrance of Shantou Harbour which connects Shenshan Expressway in the lanes which are connected to GNSR Expressway, Expressway, GNSR to connected are which lanes of GWSR Guangqing Expressway, southern part Expressway and Guangsan Expressway. The toll length is approximately 42.1 km with six km with six The toll length is approximately 42.1 It is located in the northwestern part of Guangdong Guangdong part of in the northwestern is located It between Guangdong and as a significant linkage 215.2 km Hunan. The toll length is approximately with four lanes. JINXIONG EXPRESSWAY CANGYU EXPRESSWAY It is located in the west of Tianjin Municipality, It is located in the west of Tianjin Municipality, and Hebei Province at the junction, and linking Jinghu section), (Hebei Expressway Jinxiong the Expressway and Tianjin Waihuan Lane etc. with a toll length of approximately 23.9 km with four lanes. TIANJIN four lanes, forming a part of Guangkun Expressway Expressway four lanes, forming a part of Guangkun (G80). It is located in Longxu District, which was originally District, which was originally It is located in Longxu in Guangxi Wuzhou City of in Cangwu Country, District Zhuang Autonomous Region, linking Longxu Guangdong of Guangxi with the Yunan Country of 22 km with Province. The toll length is approximately LOCATION MAPS OF PROJECTS MAPS OF LOCATION YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU GUANGXI

Annual Report 2020 10 11 Annual Report 2020 YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU LOCATION MAPS OF PROJECTS MAPS OF LOCATION WEIXU EXPRESSWAY CHANGZHU CHANGZHU EXPRESSWAY guang Expressway (G55), Ningluo Expressway guang Expressway (G55), Ningluo Expressway ’ (G36) and Lianhuo Expressway (G30). The toll length is approximately 64.3 km with four lanes. Located in Henan Province, Weixu Expressway is an an is Expressway Weixu Province, Henan in Located important part of Lan-nan Expressway as well as the significant linkage between G4 Expressway, Daguang Expressway (G45), Xuguang Expressway (G0421), Er HENAN Liu Expressway, Airport Expressway and Hukun and Hukun Liu Expressway, Airport Expressway Expressway. It starts from Huanghua Village in the Changsha Village in the Changsha It starts from Huanghua while ending at northwest of County, Changsha City, has a Zhuzhou Electric Factory. Changzhu Expressway four lanes. toll length of approximately 46.5 km with Chang- Road, Ring City Changsha with connects It HUNAN

HANCAI EXPRESSWAY EXPRESSWAY SUIYUENAN HAN-XIAO EXPRESSWAY LOCATION MAPS OF PROJECTS MAPS OF LOCATION YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU in the urban area of Wuhan, it connects the Wuhan in the urban area of Wuhan, it connects the Wuhan Kong-Macau Beijing-Hong the and Line Ring Third Expressway (route number G4) and extends to Huyu important an G50), being number (route Expressway west bound corridor for Wuhan. It has a toll length of approximately 36.0 km, 13 km of which is six-lane while 23 km is four-lane. Located and ended at north shore of Jinyue Yangtze River River Yangtze Jinyue of shore north at ended and in the Highway Bridge. It is an important expressway andcentral region of Hubei for connecting passenger as Henan freight transportation among regions such approximately 98.1 km length is toll The Hunan. and with four lanes. It starts from Hanyi Expressway Zhuji Interchange Interchange It starts from Hanyi Expressway Zhuji Ring Road, Daijiashan-Huangpi Expressway and and Ring Road, Daijiashan-Huangpi Expressway Xiaoxiang Expressway. It starts from Huangpi District, Wuhan city and District, Wuhan city and It starts from Huangpi toll The City. Xiaogan District, Xiaonan at ended lanes. four with km 38.5 approximately is length with Wuhan Han-Xiao Expressway also connects Wuhan Airport Expressway, G4 Expressway, HUBEI

Annual Report 2020 12 13 Annual Report 2020 YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU LOCATION MAPS OF PROJECTS MAPS OF LOCATION Dong ’ E ’ EXPRESSWAY DAGUANGNAN HAN EXPRESSWAY s town planning. ’ 107.1 km of toll length. Located in the southern part 107.1 km of toll length. Located in the southern passageway important an is it Province, Hubei of connecting Hubei and Jiangxi province. It is a four-lane expressway with approximately It is a four-lane expressway with approximately expressway is one of the seven fast urban exit roads exit roads expressway is one of the seven fast urban in Wuhan It is a four-lane expressway with approximately with approximately It is a four-lane expressway starts from Xinqiao Village 54.8 km of toll length, and ends at the Huahu of Zuoling Town in Wuhan the E interchange which is the southern route of This Changjiang Bridge of the Daguang Expressway.

CHAIRMAN’S STATEMENT

WUZHOU GUANGXI

GUANGZHOU GUANGDONG ), the ” Reporting Year “ ) and the implementation of 79-day ” LI FENG CHAIRMAN COVID-19 pandemic “ to RMB160 million, representing a year-on-year decrease of 85.9%. of 85.9%. decrease a year-on-year representing million, to RMB160 The decrease in revenue and profit was mainly due to the COVID-19 pandemic ( Toll Fee Exemption measures in response to the pandemic prevention and control. The Board has recommended the payment of a final dividend for 2020 of HK$0.07 per share, which is equivalent to RMB0.0584 per share, the annual dividend payout ratio of 2020 is 60.9%. OPERATING RESULTS AND DIVIDEND During the year ended 31 December 2020 (the Group recorded revenue of RMB2,920 million, representing a year-on- year decrease of 3.4%. Profit attributable to shareholders amounted S STATEMENT ’ CHAIRMAN YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU

Annual Report 2020 16 17 Annual Report 2020 ), in response to ), in response to ” S STATEMENT ’ s projects have recorded s projects have recorded ’ s operating results were affected. ’ CHAIRMAN YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU Temporary Toll Exemption Measures “ s existing investment grade credit rating. The Group can also also can Group The rating. credit grade investment existing s ’ structure through restructuring, and reduce its finance costs. monitor the relevant development. solid a laid which businesses, its developing while policy financial prudent a pursued always has Group The and stable financial situation and to foundation. As a result, the Group can continue to maintain sufficient liquidity Policy, and domestic internal withstand the impact of the COVID-19 pandemic and the Temporary Toll Exemption Group the maintain also agencies rating credit continue to optimize its debt consolidate and fully leverage its competitive advantage of low-cost debt financing, As announced in the official website of the Ministry of Transport, the PRC Government will, in accordance with the As announced in the official website of the Ministry of Transport, the PRC Government supporting and protective policies requirements of the relevant laws and regulations, study on the issue of related a coordinated in roads of toll operators and investors creditors, of the users, interest legitimate the to safeguard the operation period of all toll manner. Currently, Guangxi Zhuang Autonomous Region is the first region to extend expected period). It is toll fee exemption road projects in the region by 79 days (which is the same duration as the the future, and the Group will closely that other provinces will also introduce relevant compensation plans gradually in plan, and implemented a temporary measures of toll fee exemption for cars on toll roads across the country from of toll fee exemption for cars on toll roads across the country from plan, and implemented a temporary measures days in total) (the 17 February to 5 May 2020 (79 toll-free the Group epidemic. As a result, of COVID-19 and control the need for prevention from 00:00 on 6 May 2020, most of the Group However, since the resumption of toll growth, which partially offset the negative impact of the interim loss. vehicle speed increasing by 16%, leading to the reduction of the average daily traffic congestion and improvement of vehicle speed increasing by 16%, leading travel efficiency. Business Development of Transport of China extended the implementation of toll exemption for During the Reporting Year, the Ministry or less during the spring festival holiday by 9 days apart from the original small passengers cars with seven seats pandemic in different phases, which ensured safe trips of residents and promoted the high quality development of safe trips of residents and promoted the high quality development of pandemic in different phases, which ensured be RMB expected to in transportation was investment fixed asset Period, the Reporting In the steadily. transportation growth of 7.1%. The road cargo volume maintained positive growth for 3,475.2 billion, representing a year-on-year and returned to the same level as that of corresponding period of eight consecutive months from May to December, 2020, 1 January on stations borders toll provincial the of cancellation the since that, show statistics Relevant year. last running smoothly with ETC utilization rate exceeding 67% and the average the linked transportation system has been economy was adversely affected. Under the complicated and harsh external environment, the Chinese government government harsh external environment, the Chinese affected. Under the complicated and economy was adversely and of the pandemic as well as economic development, tasks for the prevention and control has coordinated various and control of efficient and strong prevention of work and production with implementation promoted the resumption of both prevention and control effectiveness and economic performance. measures. China is a global leader in terms industry faced serious challenges due to the outbreak of the COVID-19 During the Reporting Year, the transportation the of control and prevention the of results fruitful achieve still could fortunately, industry, the and pandemic, Marco-Economy and Regulatory Environment of the Sector and Regulatory Environment Marco-Economy rate in 2020 January 2021, the global economic growth by International Monetary Fund in According to the forecast quickly beginning of 2020 and it has started at the pandemic of COVID-19 The outbreak to be -3.5%. was expected control measures have taken pandemic prevention and Accordingly, various governments spread around the world. the global hence and and business production activities on travel of restrictions to different degrees which have led ANNUAL REVIEW s ’ ). In 2019, the Group ). In 2019, the Group ” Outline of the National Outline of the National “ s logistics market (data shows s logistics market (data shows ) and ’ ” ) proposed a development goal of ) proposed a development goal of ” 14th Five-Year Plan for National Economic 14th Five-Year Plan for National Economic “ e Expressway and Daguangnan Expressway in ’ Outline “ s social logistics reached 10.09% from 2010 to 2010 from 10.09% reached logistics social s incubation-injection mode ’ ( “ ” ( ” 14th Five-Year Plan “ ( ” s economy remains complex and volatile, full of challenges and complex and volatile, full of challenges s economy remains ’ s Republic of China ’ S STATEMENT ’ Parent company incubation-acquisition of listed company “ CHAIRMAN YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU also help the Group acquire more quality resources through this mode in the future. In the current macroeconomic environment, high-quality expressway projects with stable returns are attractive, and the stable returns are attractive, and the In the current macroeconomic environment, high-quality expressway projects with make full use of its parent company competition for mergers and acquisitions is becoming fierce. Therefore, the Group will of toll expressways through the resource platform in the process of business development to develop its major business mode of completed the acquisition of three projects, namely Hancai Expressway, Han The experience accumulated will Hubei, through the incubation-injection mode to achieve a breakthrough development. Development Strategies and investment opportunities its major business of toll expresswaysDuring the 14th Five-Year Plan period, the Group will still focus on the development of deepening its engagement in and strive to achieve a long-term, sustainable and quality development by continuously (such as Henan, Hubei, Hunan and the Guangdong-Hong Kong-Macau Greater Bay Area and the central core regions acquisitions of high-quality projects. other provinces with large population and labor force) and pursuing mergers and 2019), the dominant role of road transportation in social freight transportation mode (representing 73% in 2019) 2019) in 73% (representing mode transportation freight social in transportation road of role dominant the 2019), of car ownership. All these are the main driving forces for the steady growth and the huge base and growth potential expressway projects have entered into their mature stage, they can bring of expressway assets. Moreover, as the can attract investors who pursue stable returns and better meet the needs stable and sustainable cash flow, which stable Hence, macroeconomic background, current the under products management wealth bank and insurance of financial support will be provided for the development of the expressway industry. from newly built expressways will continue to increase. from newly built expressways will continue is an important cornerstone for healthy development of the national A well-developed national expressway network the fundamental characteristics of the expressway industry remain economy. Despite the various challenges, such as the rapid development of the PRC unchanged. There are favorable factors PRC the of value total the of rate growth annual compound the that Since the first expressway, Huija Expressway, completed and commenced operation in 1988, the PRC has made completed and commenced operation in 1988, the PRC has made Since the first expressway, Huija Expressway, construction in less than 50 years. The mileage of operating expressways is remarkable achievements in expressway the world. The latest published nearly 150,000 kilometers, ranking first in and Social Development of the People Network Plan Comprehensive Three-dimensional Transportation transportation nation. The Outline also stated that the total mileage of the accelerating the construction of a strong approximately 160,000 kilometers in 2035, which implied that the mileage national expressway network will reach Although the external environment facing by China Although the external unchanged. and positive development trend remains for maintaining a long-term stable uncertainty, the foundation sustainable macro-economic strategies and active fiscal policy and healthy It is expected that continued, stable and a stable of resumption to the support sufficient provide to order in China, in implemented be will policy monetary quality development of our economy and society. growth of real economy and promote high Macroeconomic Prospects and Outlook of the Industry Prospects and Outlook of Macroeconomic global outbreak coronavirus vaccine takes time, the and widespread application of a new Since the development are still scattered is broadly under control, there is still crucial. In China, although the pandemic prevention and control and business the mobilization of people, production epidemic, which would continue to affect cases and outbreak of a long process. recovery of global economy will be engagement. As a result, FUTURE PROSPECT AND OUTLOOK FUTURE PROSPECT

Annual Report 2020 18 19 Annual Report 2020 ), ), ” Rinan “ Five vertical vertical Five “ Yuexiu Lanwei Yuexiu Lanwei “ Parent Company S STATEMENT ’ ) in a judicial bidding ) in a judicial bidding “ ” or ” CHAIRMAN Lanwei Expressway “ YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU s regional development strategy and is expected expected is and strategy development regional s ’ Guangzhou Yuexiu Group Guangzhou Yuexiu “ s major business of toll expressways. ’ ), which provided legal basis for the domestic pilot scheme of the pilot scheme of the ), which provided legal basis for the domestic ” expressway network planned by Henan Province. expressway network ” ), including commencement of due diligence, traffic volume assessment assessment volume traffic diligence, due of commencement including ), ” Guideline “ Potential Acquisition Potential “ ), one of the 28 national planned core highways, and is also an important component of the the of component important an also is and highways, core planned national 28 the of one ), ” ), acquired the toll collection right of Henan Lanwei Expressway ( right of Henan Lanwei Expressway ), acquired the toll collection ” LI FENG Chairman Hong Kong, 9 March 2021 of all members of our Group, I would like to express my gratitude and appreciation to all our shareholders, banks, to all our shareholders, banks, of all members of our Group, I would like to express my gratitude and appreciation business community and partners for their dedicated support over the years. shareholders. APPRECIATION staff continued to adhere to their During the Reporting Year, our directors, senior management officers and all our behalf On work. quality and performance excellent of pursuit in attitude, working resolute and diligent pragmatic, Funds (for Trial Implementation) (the the opportunities brought by the introduction of the new policy and strive infrastructure REITs. The Group will capture the REITs. This would be our starting point for utilizing positive interaction to become one of the pilot companies for business new of innovation implementing and circulation capital for channel the up opening platforms, two the of with premium toll expressways in models, to promote the business to the high quality and sustainability stage, continuous and stable returns to our developed regions or region with high growth potential as the core, and create available. and no terms have been agreed for the Potential Acquisition. Also, the Group has not entered into any the Group has not entered into any Also, Acquisition. Potential the no terms have been agreed for and available. Acquisition. The Board of Directors will issue further announcements formal agreement with respect to the Potential applicable laws when appropriate. Since Guangzhou Yuexiu Group is a in accordance with the Listing Rules and it materialized, is Acquisition Potential the if information, available currently on based Group, the of person connected transaction of the Company under the Listing Rules. may constitute a notifiable and connected released Guidelines for Publicly Offered Infrastructure Securities Investment In addition, on 7 August 2020, the CSRC the Group has actively pursued mergers and acquisitions of high-quality projects in the central core area. Given the the Group has actively pursued mergers Group the with line in is it Expressway, Lanwei of location geographic the Group to have a positive effect in strengthening the Group has started to move forward the potential acquisition of the As of the date of the chairman statement, ( Expressway Lanwei of the due diligence, traffic volume assessment and valuation are not yet and valuation, etc. However, the results ends at Weishi County, intersects with Lianhuo Expressway, Zhengmin Expressway and Daguang Expressway, and Expressway, and Zhengmin Expressway and Daguang intersects with Lianhuo Expressway, ends at Weishi County, Expressway is an wholly-owned by the Group. Lanwei to Henan Weixu Expressway, a project is directly connected and Shandong Province. Lanwei Expressway has a total length of 61.03 important corridor connecting Henan Province a with expressway four-lane two-way a of standard construction the with accordance in constructed was It kilometers. According to the approval granted by the Henan Provincial Government, designed speed of 120 kilometers per hour. 2034, and the remaining operation term is about 13 years. In recent years, the operating period will expire on 1 July Company ( is a section of the Rizhao-Nanyang Expressway of RMB2.483 billion. Lanwei Expressway at the consideration Expressway roads and four corridors roads, four horizontal County and Henan Province, passes through Tongxu which starts in Lankao County, Kaifeng City, Lanwei Expressway, On 19 December 2020, Guangzhou Yuexiu Holdings Limited ( Guangzhou Yuexiu Holdings Limited On 19 December 2020, Expressway Company Limited ( subsidiary Henan Yuexiu Lanwei through its wholly-owned MANAGEMENT DISCUSSION AND ANALYSIS WUHAN HUBEI

CHANGSHA HUNAN 3 8 9 14 10 22 18 22 20 12 10 10 16 20 15 Term (year) Operating Remaining

(5) (2) (%) 23.63 30.00 24.30 35.00 67.00 90.00 70.00 60.00 27.78 60.00 100.00 100.00 100.00 100.00 100.00 Interests Attributable Bridge Bridge Suspension Suspension Expressway Expressway Expressway Expressway Expressway Expressway Expressway Expressway Expressway Expressway Expressway Expressway Expressway Road Type

(1) (4) (1) (1) (1) 3 8 4 2 5 2 5 2 4 6 《國務院辦公廳關於印發深化收費公路制度改革取消高速公 2 6 0 2 ( 15 Toll ” Station(s)

(3) 4 6 6 6 6 4 4 4 4 4 4 6 4 4 4/6 (lanes) Width

6.5 Toll (km) 22.0 42.1 15.8 36.0 54.8 38.5 46.5 64.3 98.1 22.0 23.9 42.5 215.2 107.1 Mileage

Notice of the General Office of the State Council on Publishing the Implementation Plan of the Promotion of the Toll Road Notice of the General Office of the State Council on Publishing the Implementation Plan of the Promotion “ 60% in 2016 and thereafter. linking point has been abolished; and the another toll station has been abolished from 10 October 2020. System Reform and Cancellation of Expressway Provincial Border Toll Stations Toll Border Provincial Expressway of Cancellation and Reform System since 1 路省界收費站實施方案的通知》) and related technical plans, all provincial expressway toll stations across the country were cancelled Expressway, Jinxiong Expressway, January 2020. Existing toll stations at provincial borders of projects operated by the Group, namely, Cangyu requiring without collected be can toll which of result a as scheduled, as removed were Expressway, Qinglian and Expressway Daguangnan vehicles to stop and pay when they went across the relevant provinces. e Expressway ’ (2) 2015, The percentage of equity interest attributable to the Group was 60%; profit sharing ratio: 90% in 2012 and before, 40% from 2013 to (3) There are 6 lanes at the section from Miliang Shan to Wuhan Outer Ring Road, and 4 lanes on the remaining expressway. (4) the at station toll the and Line), Extension (Northern Highway Ring First Foshan with linked been has station toll the 2020, 1 January From (5) The profit-sharing ratio was 18.446% from 2010 onwards. (1) According to the Qinglian Expressway Shantou Bay Bridge Northern Ring Road Humen Bridge GWSR Expressway Associates and Joint Venture Changzhu Expressway Weixu Expressway Suiyuenan Expressway Hancai Expressway Han Daguangnan Expressway Han-Xiao Expressway MANAGEMENT DISCUSSION AND ANALYSIS DISCUSSION MANAGEMENT YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU GNSR Expressway Cangyu Expressway Jinxiong Expressway Subsidiaries Summary Information of Operating Toll Roads and Bridges of Operating Toll Roads Summary Information BUSINESS REVIEW Notes:

Annual Report 2020 22 23 Annual Report 2020 % Notice “ 3.8% 1.9% 6.4% 9.3% 6.6% -6.2% -4.4% Y-O-Y 32.9% 15.8% 19.4% 19.7% 66.5% 18.8% 11.9% 17.7% Change

(3) (《關於恢復收費公路收 ” 23,676 33,252 47,929 41,220 30,017 70,251 30,703 53,893 12,489 45,254 32,675 77,895 July to Average daily 110,815 382,534 297,280 in 2020 toll traffic volume December Notice on Waiver of Tolls on Toll “ (Vehicle/day) (關於延長二○二○年春節假期小型 ”

(《關於新冠肺炎疫情防控期間免收收費 ”

% 1.3% 1.4% 5.0% 8.8% 0.9% 9.6% -8.3% -3.3% -7.7% Y-O-Y 21.7% 32.2% 35.8% 11.1% 11.6% -12.4% Change YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU Notice of the Work Related to Exempting Toll Fee for Small

“ (3) July to 685,278 586,097 532,868 217,004 287,394 577,930 811,420 in 2020 1,069,673 1,983,232 1,293,057 1,759,180 1,800,641 2,029,494 2,453,410 3,534,847 (RMB/day) December

(關於做好二○二○年春節假期免收小型客車通行費有關工作的通知), the (1) MANAGEMENT DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT ” % 6.3% 0.3% 0.5% 6.6% 4.8% -4.6% -5.0% -3.7% -8.3% Y-O-Y 10.8% 25.8% -45.0% -10.2% -15.5% -11.5% Announcement on Resumption of Toll Collection for Toll Roads Change “ Average daily toll revenue

(2) 2020 Notice of Extension for the Period of Exempting Toll Fee of Small Passengers Vehicles on Toll Roads during Roads Toll on Vehicles Passengers Small of Fee Toll Exempting of Period the for Extension of Notice “ 472,515 191,081 255,251 531,433 719,099 624,042 512,791 1,523,218 1,563,862 1,870,943 2,301,103 3,167,671 1,006,934 1,815,021 1,183,791 (RMB/day) Full year of (關於延長春節假期收費公路免收小型客車通行費時段的通知). According to the ”

), toll collection for legally approved toll roads is resumed from 0:00 a.m. on 6 May 2020 (79 toll-free days in total). All projects of 費的公告》), toll collection for legally approved toll roads is resumed from 0:00 a.m. on 6 May 2020 (79 toll-free on calculated based was Group throughout 2020 the of revenue toll daily average The collection. toll normal for resumed have been Group the (79 days), which is equivalent to 287 the number of calendar days of the whole year (366 days) less the number of the days exempting toll fees throughout the year (365 days). days. However, the average daily toll revenue throughout 2019 was calculated based on the calendar days average daily traffic volume during July number of calendar days during July to December (184 days), and the average daily toll revenue and the to December 2019 was also calculated based on 184 days. Passengers Vehicles During the 2020 Spring Festival Holiday Holiday Festival Spring 2020 the During Vehicles Passengers Small of Period Toll Free the for Extension of the and 客車免費通行時段的通知) the Spring Festival Holiday Roads During the Prevention and Control of Epidemic Caused by the Novel Coronavirus Pneumonia the end of the 公路車輛通行費的通知》), toll fee for all vehicles on toll roads nationwide was exempted from 0:00 on 17 February 2020 until disease prevention and control. According to the system at the initial stage of operation, the supervisory authorities of the provinces (municipalities) where the projects are located were unable stage of operation, the supervisory system at the initial the full-year toll revenue and its year- to provide accurate data of toll traffic volume from January to June 2020, the Group will mainly disclose the toll traffic volume and the year-on- on-year changes for 2020, the toll revenue and the year-on-year changes for July to December 2020 and year changes for July to December 2020. days on the original basis) during the 2020 Spring Festival Holiday according to the e Expressway ’ (3) the on based calculated was 2020 December to July during Group the of volume traffic daily average the and revenue toll daily average The (1) to the COVID-19 outbreak and the instability of the new 2020, due stations on January 1, borders toll Since the cancellation of the provincial (2) toll fees of small passengers vehicles on toll roads were waived from 0:00 on 24 January 2020 to 24:00 on February 8 (extended by 9 National Humen Bridge Northern Ring Road Shantou Bay Bridge Qinglian Expressway Han Daguangnan Expressway Associates and Joint Venture GWSR Expressway Jinxiong Expressway Han-Xiao Expressway Changzhu Expressway Weixu Expressway Suiyuenan Expressway Hancai Expressway Subsidiaries GNSR Expressway Cangyu Expressway For the twelve months ended 31 December 2020 For the twelve months TOLL SUMMARY OF TOLL ROADS AND BRIDGES TOLL SUMMARY Notes: 21,094 31,085 46,468 40,790 28,988 69,157 29,418 49,905 13,929 41,741 31,415 77,067 in 2020 108,330 372,676 283,592 toll traffic (vehicle/day) Average daily volume of the Fourth quarter

26,257 35,420 49,390 41,651 31,046 71,345 31,987 57,881 11,049 48,767 33,936 78,723 in 2020 113,300 392,392 310,968 toll traffic (vehicle/day) Third quarter Average daily volume of the

e Expressway ’ MANAGEMENT DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU Northern Ring Road Shantou Bay Bridge Qinglian Expressway Han Daguangnan Expressway Associates and Joint Venture GWSR Expressway Humen Bridge Jinxiong Expressway Han-Xiao Expressway Changzhu Expressway Weixu Expressway Suiyuenan Expressway Hancai Expressway GNSR Expressway Cangyu Expressway Subsidiaries Quarterly analysis of average daily toll traffic volume for 2020 of average daily toll traffic volume for Quarterly analysis Toll Roads and Bridges Toll Roads and

Annual Report 2020 24 25 Annual Report 2020 Vehicle “ .1% Q4 0.2% 0.2% 0.1% 0.1% 0.2% 0.2% 0.1% 0.1% 0.1% 0.1% 0.1% 0.2% 0.1% 0.2% 800,000 1.5% 100.0% s investment and Q3 ’ 10.3% 16.5% 22.0% 19.2% 24.2% 26.1% 30.3% 700,000 31.0% Special purpose vehicles(1) %0 37.3 43.2% 43.4% 42.8% 44.6% 45.3% ucks 80.0% Tr 600,000 YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU Passenger cars 500,000 60.0% 400,000 ehicle / Day ehicle / Day V V 89.5% MANAGEMENT DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT 83.4% 98.4% 77.9% 80.6% 75.7% 40.0% 300,000 73.7% 68.8% 69.6% 62.6% s operating projects were primarily distributed in six provinces/municipalities in six provinces/municipalities s operating projects were primarily distributed 57.1% ’ 56.5% 56.6% 55.2% 54.6% 200,000 implemented on January 1, 2020, in the regions where the Group implemented on January 1, 2020, in the ” 20.0% 100,000 Quarterly analysis of average daily toll traffic volume for 2020 of average daily toll traffic volume Quarterly analysis 0 0 n n ixu ixu Han’e Han’e We We GWSR GNSR Bridge GWSR GNSR Bridge Hancai Hancai essway essway essway essway essway essway essway essway essway essway essway essway essway essway essway essway essway essway essway essway essway essway essway essway Humen Humen Qinglian Cangyu Shantou Qinglian Cangyu Shantou Jinxiong Jinxiong Norther Norther Han-Xiao Han-Xiao Ring Road Suiyuenan Changzhu Ring Road Suiyuenan Changzhu Bay Bridge Bay Bridge Expr Expr Expr Expr Expr Expr Expr Expr Expr Expr Expr Expr Expr Expr Expr Expr Expr Expr Expr Expr Expr Expr Expr Expr used in engineering special projects, health care and other operations. Daguangnan Daguangnan Note: (1) (1) Note: vehicles of manufacture and or apparatus, in the design equipment special of the installation with cars the to refers vehicle purpose Special operating projects are located, all vehicles are classified into three categories in a standardized way: passenger cars, operating projects are located, all vehicles trucks, and special purpose vehicles. Vehicle type analysis (by traffic volume) Vehicle type analysis (by traffic During the Reporting Year, the Group of standard industry the with accordance In Tianjin. and Henan Hubei, Hunan, Guangxi, Guangdong, including Classification of the Toll Highway 1.3% 7.0% Henan 54,997 Province

7.5% -5.0% Hubei 43,443 Province (Unit: RMB100 million)

3.8% 7.6% 41,781 Hunan Province

3.7% 6.0% 22,157 Region Guangxi Autonomous

s economy. However, with the gradual resumption of of resumption gradual the with s economy. However, ’ 1.5% 4.8% 14,084 Tianjin Municipality

2.3% 6.2% 110,761 Province Guangdong

2.3% 6.1% National s economy has recovered steadily, showing a trend of going downward first and then downward first and then steadily, showing a trend of going s economy has recovered ’ 1,015,986

MANAGEMENT DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU GDP for the year 2020 GDP changes for the year 2020 GDP changes for the year 2019 Source: National and Provincial Bureaus of Statistics, Ministry of Transport 3.7%, increased by 3.8%, decreased by 5.0% and increased by 1.3% year-on-year, respectively. 3.7%, increased by 3.8%, decreased by turnover decreased by 47.6% and increased by 0.9% year-on-year, respectively. turnover decreased by 47.6% and increased ownership maintained a steady growth momentum. As at 31 December During the Reporting Period, domestic car million vehicles, representing a year-on-year increase of 8.1%. 2020, domestic car ownership reached 281 Group are distributed throughout Guangdong, Tianjin, Guangxi, Hunan, The projects invested and operated by the throughout 2020 increased by 2.3%, increased by 1.5%, increased by Hubei and Henan. The GDP of these regions basis, there was a year-on-year GDP decrease of 6.8% for the first quarter, an increase of 3.2% for the second for the second the first quarter, an increase of 3.2% GDP decrease of 6.8% for basis, there was a year-on-year of 6.5% for the fourth quarter. of 4.9% for the third quarter and an increase quarter, an increase to normal level, main index of the sector showed an improving trend. As economic activities gradually returned November to January from billion RMB2,256.9 to amounted construction expressway of assets fixed on Investment of 11.5%. In January to December 2020, Highway passenger and cargo 2020, representing a year-on-year increase MACROECONOMIC ENVIRONMENT MACROECONOMIC Period, coronavirus battered China During the Reporting China work and production, product (GDP) Bureau of Statistics, the gross domestic the information released by the National upward. According to On a quarterly a year-on-year increase of 2.3%. to RMB101,598.6 billion, representing throughout 2020 amounted SUMMARY OF OPERATING PERFORMANCE SUMMARY

Annual Report 2020 26 27 Annual Report 2020

” (《關 ” Notice of “ s projects operate, while those ’ Notice of Exempting Toll Fees on Notice of Exempting Toll Fees on “ Announcement of the Resumption of “ (《關於新冠肺炎疫情防控期間免收收 ” Vehicle Classification of the Toll Highway YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU “ (《關於做好二○二○年春節假期免收小型客車 ” s investment and operation projects are located, all ’ Notice of the Work Related to Exempting Toll Fee for Related to Exempting Toll Fee for Notice of the Work “ MANAGEMENT DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT Notice of Exempting Toll Fees on Toll Roads During the Period of Roads During the Period of Notice of Exempting Toll Fees on Toll ), (《關於新冠肺炎疫情防控期間免收收費公路車輛通行費的通知》 Notice of the General Office of the State Council on Publishing the Notice of the General Office of the State Council on Publishing the “ ” “ ), all projects of the Group have resumed (《關於恢復收費公路收費的公告》), all projects of the Group have resumed ” Notice of Extension for the toll-free Period of Small Passengers Vehicles During the for the toll-free Period of Small Passengers Notice of Extension “ ) and the (《關於延長二○二○年春節假期小型客車免費通行時段的通知》 ” ) (《國務院辦公廳關於印發深化收費公路制度改革取消高速公路省界收費站實施方案的通知》 ” During the Reporting Year, in accordance with the industry standard of implemented on January 1, 2020, in the regions where the Group trucks, and special purpose vehicles. vehicles are classified into three categories in a standardized way: passenger cars, authorities of the industry and carried out the relevant measures, such as the construction of ETC gantry systems, construction of ETC gantry systems, authorities of the industry and carried out the relevant measures, such as the systems for projects operated by the the renovation of ETC lanes and the installation of non-stop weight inspection Expressway, Cangyu namely, Group, the by operated projects of borders provincial at stations toll Existing Group. removed as scheduled, and system Jinxiong Expressway, Daguangnan Expressway and Qinglian Expressway, were switching and co-network operation were successfully achieved. During the Reporting Year, according to the of Expressway Provincial Implementation Plan of the Promotion of the Toll Road System Reform and Cancellation Border Toll Stations were closed since 1 January 2020 and related technical plans, all provincial expressway toll stations across the country competent from stations toll provincial of cancellation of request the to responded actively Group The scheduled. as in other provinces were still under research and formulation. The Group continues to actively communicate with and formulation. The Group continues to actively communicate with in other provinces were still under research and its counterparts to strive for favorable safeguard policies and ensure competent authorities of expressway industry the benefits of the Company. implemented policies of differentiating expressway toll collection in the During the Reporting Year, the Group standard, which will affect toll provinces (cities) where its projects operate to further lower the truck fee collection revenue of each project in short term. health authorities. to the During the Reporting Year, according Prevention and Control of Novel Coronavirus to protect the interests of all parties. The safeguard policies have been supporting policies will be issued separately the provinces (cities) where the Group launched in Guangdong and Guangxi among the Collection of Toll Fee on Toll Roads the epidemic cooperate with actively in order to addition, May 2020. In 0:00 on 6 from toll collection to normal of the Group actively take various measures, such as disinfection of the officeprevention and control work, all projects of prevention and control isolation areas and body temperature detection space and toll station area, establishment relief vehicles and maintaining close communication with local hygiene and points, priority access for the emergency 2020 Spring Festival Holiday 2020 Spring Festival Holiday on Toll Roads during the Spring Festival Period of Small Passengers Vehicles Extension for the toll-free ). According to the 於延長春節假期收費公路免收小型客車通行費時段的通知》 Coronavirus of Novel Prevention and Control During the Period of Toll Roads across the country from 0:00 on 17 February 費公路車輛通行費的通知》), toll fee on the toll roads were exempted and control work. According to the 2020 to the end of the disease prevention During the Reporting Year, to cope with COVID-19, the Central Government of China has adopted a series of a series of Central Government of China has adopted Year, to cope with COVID-19, the During the Reporting vehicles on of toll exemption for small passengers measures, including: implementation prevention and control plan) original the from 9 days apart by (extended 8 February 24:00 on to 2020 January on 24 0:00 from roads toll Festival Holiday according to the during the 2020 Spring Holiday During the 2020 Spring Festival Small Passengers Vehicles ), the 通行費有關工作的通知》 REGULATORY ENVIRONMENT OF THE SECTOR REGULATORY s ’ was was ” s long-term ’ Long-life rehabilitation pavement pavement rehabilitation Long-life “ will further strengthen the reform of the toll toll of the reform the further strengthen will ” Regulation on the Administration of Toll Roads of Toll Administration on the Regulation “ MANAGEMENT DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU projects operate (except for Guangdong and Guangxi). In order to further lower the costs of logistics, certain local the costs of logistics, certain local projects operate (except for Guangdong and Guangxi). In order to further lower provinces had implemented the pilot governments had launched highway toll reduction measures, for example, some had implemented concessionary toll program of differentiated highway toll collection at different times, while others management has been further reduction policy for freight vehicles on state-owned highways. Industry standardized term short From improve. to continue standards maintenance and requirements access road the and strengthened, and costs of the Company. perspective, those measures bring pressure on the operation and management, income Risk analysis: The analysis: Risk and the adjustment of the road system. The downward pressure on the domestic macro economy has increased, demand. freight the particularly demand, transportation the affect may which continued, has structure transportation roads were exempted for 79 days In line with the prevention and control of the COVID-19 pandemic, the toll provinces (cities) where the Group nationwide, with the corresponding compensation policy not yet released in the POSSIBLE RISK EXPOSURE management system which covered During the Reporting Year, the Group further improved the comprehensive risk to monitor the following risks all aspects of corporate strategies, operation and investment. The Group will continue and will adopt effective tackling measures proactively in the future. Risk of Sectoral and Economic Policies During the Reporting Year, the Group also completed the capital injection of RMB76 million to Guangzhou Pazhou Guangzhou to million RMB76 of injection capital the completed also Group the Year, Reporting the During and operates the Guangzhou Pazhou Port Project and is 45% owned by Port Company Limited, which constructs utilized in the first phase of construction of the Guangzhou Pazhou Port the Group. The capital injected was mainly in the first phase of the Project will be completed by the end of the year. Project. The construction of the main body sizes in order to strengthen its core business. With its base in Guangdong, Hong Kong and Macau Greater Bay Area, and Macau Greater Guangdong, Hong Kong its base in business. With its core in order to strengthen sizes expressways which have a balanced operating cash flow from central and the Group actively looked for and acquired so as to expand its business scale, and would also seek for development western provinces with developed economy with stable cash flows. In addition, the Company is actively preparing opportunities of infrastructure facility projects investment trusts) and strives to become the pilot company. the project of the REITs (immovable property shall continue to enhance our staff development system and provide a solid foundation for the Company shall continue to enhance our staff development development. PROGRESS OF INVESTMENT and medium of large projects on high-quality expressway to focus Year, the Group continued the Reporting During cooperation. We made great efforts to develop comprehensive maintenance and renovation as well as construction maintenance and renovation as well great efforts to develop comprehensive cooperation. We made technologies, new of application the out carry to continued and capabilities, control and management project named technology maintenance road The equipment. and processes materials, and long-term service performance verification and evaluation construction and maintenance technology of China Highway And Transportation Society. We actively promote awarded the first prize of science and technology and effectively enhance the information synergy capabilities. Moreover, we the adoption of information technologies, During the Reporting Year, the Group continued to enhance the capability on ensuring smooth traffic flow and traffic flow and the capability on ensuring smooth Year, the Group continued to enhance During the Reporting We actively road traffic efficiency and service capacity. capability, and further enhanced its operational management operation of and equipment, and ensured stable and optimization of toll collection facilities conducted adjustment and production We continued to strengthen safety and systems for various projects. the toll collection equipment systems, system and capability. We built up innovative of safety production governance promoted the construction development a high-level platform for innovation and of high-tech enterprises and set up pushed for accreditation BUSINESS IMPROVEMENTS AND INNOVATIONS BUSINESS IMPROVEMENTS

Annual Report 2020 28 29 Annual Report 2020 s core core s ’ YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU s projects may be affected. ’ s expressways continues to be upgraded. The number of of number The upgraded. be to continues s expressways ’ MANAGEMENT DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT s projects had demonstrated a promising trend of recovery. s projects had demonstrated a promising ’ undertaken in closed section of Guangkun Expressway (for the section between Liujing and Xingye and from Nanning from and Xingye and Liujing between section the (for Expressway Guangkun of section closed in undertaken Nanning, the traffic control was to Yulin, the traffic control has now ended; for the section from Yulin towards implemented since 15 December). compared with 2019. During July to December, the average toll revenue was RMB 217,000, representing an increase compared with 2019. During July to December, the average toll revenue was RMB volume was 12,489 vehicles, of 35.8% when compared with July to December 2019. The average daily traffic representing an increase of 66.5% when compared with July to December 2019. traffic increase in Year was mainly attributable to the the Reporting revenue in toll of daily The year-on-year increase of traffic control for construction volume on this road section since September 2020 as a result of the implementation when compared with 2019. During July to December, the average toll revenue was RMB 3,535,000, representing was RMB 3,535,000, representing when compared with 2019. During July to December, the average toll revenue daily traffic volume was 297,280 an increase of 0.9% when compared with July to December 2019. The average 2019. vehicles, representing an increase of 6.6% when compared with July to December Cangyu Expressway an increase of 10.8% when During the Reporting Year, the average daily toll revenue was RMB191,000, representing Subsidiaries GNSR Expressway representing a decrease of 5% During the Reporting Year, the average daily toll revenue was RMB3,168,000, During the Reporting Year, due to COVID-19 and related prevention and control measures (e.g. Spring Festival holiday During the Reporting Year, due to COVID-19 original plan, expressway tolls were exempted for 79 days nationwide, etc.), was extended for 9 days apart from the were significantly affected, generally representing a year-on-year downward the toll revenue of projects of the Group For the period from July to December, the toll traffic volume and or slowdown in growth rate of the characteristics. toll revenue of the Group Counter measures: Actively communicate with the competent authorities of the industry, utilize such information with the competent authorities of the industry, utilize such information Counter measures: Actively communicate visits, and conduct timely assessments and analysis, so as to formulate the gathered through the Internet and on-site corresponding strategies in response. AND BRIDGES PERFORMANCE OF EXPRESSWAYS interests. of Road Networks Risk of Changes in the Planning Group the surrounding network The road analysis: Risk coupled with improvement in road condition of local highways and parallel roads or alternative routes may increase, of toll revenue in the Group surrounding roads. As a result, the growth relevant information regularly to establish a database for carrying out analysis and research to formulate tackling tackling out analysis and research to formulate regularly to establish a database for carrying relevant information recent most the to understand authorities supervising and entities peer between interaction strengthen measures; and launch establish good cooperation relationship exchange management experience, direction of the industry, various regions, of toll road policies the in changes the to attention Pay close compensation measures. relevant Company the maximize to measures counter formulate and analysis, and measurement timely conduct Counter measures: Pay close attention to the conditions of provinces where the project companies operate, including operate, companies project the where provinces of conditions the to attention close Pay measures: Counter and collate the and macroeconomic changes, collect policies, regional economic policies transportation industry MANAGEMENT DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU when compared with 2019. During July to December, the average toll revenue was RMB 1,983,000, representing an the average toll revenue was RMB 1,983,000, to December, when compared with 2019. During July traffic volume was 33,252 vehicles, increase of 1.3% when compared with July to December 2019. The average daily representing an increase of 32.9% when compared with July to December 2019. (subsequently changed to one-way traffic control since 15 November/two-way traffic resumed on half section since 15 15 since section half on resumed traffic November/two-way 15 since control traffic one-way to changed (subsequently December) caused by traffic accidents on local roads. Suiyuenan Expressway 3.7% of decrease a representing RMB1,815,000, was revenue toll daily average the Year, Reporting the During when compared with 2019. During July to December, the average toll revenue was RMB 1,070,000, representing a when compared with 2019. During July to December, the average toll revenue traffic volume was 23,676 vehicles, decrease of 8.3% when compared with July to December 2019. The average daily representing a decrease of 6.2% when compared with July to December 2019. due Reporting Year, which was mainly the year-on-year decrease during The daily toll revenue recorded substantial (S83) on 14 November 2020 to the two-way traffic control on pile no. K97 at Yanling Section of Lan-Nan Expressway The year-on-year increase of daily toll revenue in the Reporting Year was mainly attributable to the traffic diversion to The year-on-year increase of daily toll revenue undertaken in roads in the surrounding area. this road section as a result of the construction Weixu Expressway representing a decrease of 11.5% During the Reporting Year, the average daily toll revenue was RMB1,007,000, Changzhu Expressway daily toll revenue was RMB719,000, representing an increase of 4.8% when During the Reporting Year, the average the average toll revenue was RMB 811,000, representing an increase compared with 2019. During July to December, December 2019. The average daily traffic volume was 77,895 vehicles, of 11.6% when compared with July to compared with July to December 2019. representing an increase of 17.7% when increase of 9.6% when compared with July to December 2019. The average daily traffic volume was 32,675 vehicles, increase of 9.6% when compared with July compared with July to December 2019. representing an increase of 11.9% when traffic in increase to the Year was mainly attributable the Reporting revenue in toll of daily The year-on-year increase of toll collection. volume of small vehicles since the resumption volume of small vehicles since the resumption of toll collection. volume of small vehicles Han-Xiao Expressway daily toll revenue was RMB531,000, representing an increase of 6.6% During the Reporting Year, the average an representing 578,000, RMB was revenue toll average the December, to July During 2019. compared with when During the Reporting Year, the average daily toll revenue was RMB255,000, representing an increase of 0.5% when RMB255,000, representing an increase Year, the average daily toll revenue was During the Reporting an increase toll revenue was RMB 287,000, representing During July to December, the average compared with 2019. 45,254 vehicles, The average daily traffic volume was with July to December 2019. of 11.1% when compared to December 2019. of 18.8% when compared with July representing an increase traffic increase in mainly attributable to the Year was the Reporting revenue in toll of daily The year-on-year increase Jinxiong Expressway

Annual Report 2020 30 31 Annual Report 2020 YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU MANAGEMENT DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT e Expressway ’ an section of Daqing-Guangzhou Expressway (which was completed in August 2019). an section of Daqing-Guangzhou Expressway ’ The daily toll revenue recorded substantial year-on-year decrease in the Reporting Year mainly due to diversion upon in the Reporting Year mainly due to decrease recorded substantial year-on-year The daily toll revenue vehicle with 40 seats or above commencement of operation of Nansha Bridge since April 2019, truck and passenger phenomenon vibration vortex the from resulting control traffic and 2019 August since Bridge Humen on restrictions on Humen Bridge during 5 to 15 May 2020. During the Reporting Year, the average daily toll revenue was RMB1,564,000, representing a decrease of 45.0% representing a decrease of 45.0% During the Reporting Year, the average daily toll revenue was RMB1,564,000, was RMB1,801,000, representing when compared with 2019. During July to December, the average toll revenue daily traffic volume was 70,251 a decrease of 12.4% when compared with July to December 2019. The average 2019. vehicles, representing a decrease of 4.4% when compared with July to December During the Reporting Year, the average daily toll revenue was RMB1,523,000, representing a decrease of 4.6% 4.6% of decrease a representing RMB1,523,000, was revenue toll daily average the Year, Reporting the During was RMB 1,759,000, representing when compared with 2019. During July to December, the average toll revenue daily traffic volume was 110,815 an increase of 5.0% when compared with July to December 2019. The average 2019. vehicles, representing an increase of 19.7% when compared with July to December Humen Bridge Ji Associates and Joint Venture GWSR Expressway During the Reporting Year, the average daily toll revenue was RMB1,184,000, representing an increase of 25.8% 25.8% of increase an representing RMB1,184,000, was revenue toll daily average the Year, Reporting the During to December, the average toll revenue was RMB 1,293,000, representing when compared with 2019. During July with July to December 2019. The average daily traffic volume was 30,017 an increase of 32.2% when compared when compared with July to December 2019. vehicles, representing an increase of 19.4% in base income lower a to attributable mainly was Year Reporting the in revenue toll daily of increase year-on-year The the maintenance works at Nanshibi Tunnel at the Wuning, Jiangxi to north the corresponding period last year due to The year-on-year increase of daily toll revenue in the Reporting Year was mainly attributable to the traffic diversion to The year-on-year increase of daily toll revenue of traffic control for the construction undertaken from the parallel this road section resulting from the implementation in the end of October 2020). Wuhuang Expressway (which was completed Daguangnan Expressway During the Reporting Year, the average daily toll revenue was RMB513,000, representing an increase of 6.3% when RMB513,000, representing an increase Year, the average daily toll revenue was During the Reporting the average toll revenue was RMB 586,000, representing an increase compared with 2019. During July to December, December 2019. The average daily traffic volume was 41,220 vehicles, of 21.7% when compared with July to compared with July to December 2019. representing an increase of 15.8% when During the Reporting Year, the average daily toll revenue was RMB624,000, representing a decrease of 8.3% of 8.3% was RMB624,000, representing a decrease Year, the average daily toll revenue During the Reporting an representing 685,000, RMB was revenue toll average the December, to July During 2019. compared with when 47,929 vehicles, The average daily traffic volume was compared with July to December 2019. increase of 1.4% when December 2019. of 3.8% when compared with July to representing an increase Han Hancai Expressway MANAGEMENT DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU The daily toll revenue recorded year-on-year increase in the Reporting Year mainly due to the increase in the traffic year-on-year increase The daily toll revenue recorded of toll collection. volume of small vehicles upon the resumption Qinglian Expressway daily toll revenue was RMB2,301,000, representing an increase of 0.3% During the Reporting Year, the average to December, the average toll revenue was RMB2,453,000, representing an when compared with 2019. During July to December 2019. The average daily traffic volume was 53,893 vehicles, increase of 8.8% when compared with July with July to December 2019. representing an increase of 9.3% when compared decrease of 7.7% when compared with July to December 2019. The average daily traffic volume was 30,703 vehicles, decrease of 7.7% when compared with with July to December 2019. representing an increase of 6.4% when compared traffic the to due mainly Year Reporting the in decrease year-on-year substantial recorded revenue toll daily The implementation of toll exemption of the Queshi Bridge (which is parallel to diversion of certain trucks resulting from Shantou Bay Bridge) since 1 January 2020. impact of the implementation of restrictions on certain heavy trucks on this road section. of restrictions on certain heavy impact of the implementation Shantou Bay Bridge 15.5% of decrease a representing RMB473,000, was revenue toll daily average the Year, Reporting the During to December, the average toll revenue was RMB 533,000, representing a when compared with 2019. During July During the Reporting Year, the average daily toll revenue was RMB1,871,000, representing a decrease of 10.2% of 10.2% was RMB1,871,000, representing a decrease Year, the average daily toll revenue During the Reporting representing average toll revenue was RMB 2,029,000, 2019. During July to December, the when compared with was 382,534 2019. The average daily traffic volume when compared with July to December a decrease of 3.3% July to December 2019. an increase of 1.9% when compared with vehicles, representing Reporting Year mainly due to the continuous decrease in the recorded substantial year-on-year The daily toll revenue Northern Ring Road

Annual Report 2020 32 33 Annual Report 2020 % -3.4 95.9 -83.3 -22.5 -30.3 -17.1 -36.3 -74.2 -85.9 -85.9 Change

). ” 000 ’ 2019 88,739 585,526 262,484 (411,217) RMB 3,023,221 2,012,084 1,919,639 2,956,565 1,137,590 RMB0.6799 Reporting Year

“ YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 000 ’ 97,706 56,533 67,822 160,491 (805,757) RMB 2,919,838 1,559,261 1,337,464 2,452,006 RMB0.0959 Reporting Year

MANAGEMENT DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT (1) ) ” EBITDA s revenue was mainly attributed to implementation of temporary toll exemption of temporary toll exemption s revenue was mainly attributed to implementation ’ “ s revenue decreased by 3.4 percent to RMB2,919.8 million and profit attributable to shareholders of s revenue decreased by 3.4 percent to RMB2,919.8 ’ interim dividend was declared during the Reporting Year (2019: HK$0.18 which was equivalent to approximatelyinterim dividend was declared during the Reporting Year (2019: HK$0.18 which was is which HK$0.07 to amounts 2020 December 31 ended year the for dividend total the share, per RMB0.1620) RMB0.3500) approximately to equivalent was which HK$0.39 (2019: RMB0.0584 approximately to equivalent per share, representing a dividend payout ratio of 60.9 percent (2019: 51.5 percent). in Hubei Province. During the period of temporary toll exemption measures, the amortisation of intangible the amortisation of intangible in Hubei Province. During the period of temporary toll exemption measures, costs mainly resulted from operating rights is still required to be recorded. The increase in corporate finance in average external the increase with in November 2019, Hubei Province in expressways three of acquisition the debt balance in the Reporting Year. to equivalent is which HK$0.07 of 2020 for dividend final of payment the recommended have Directors The RMB0.1880) per share. No approximately RMB0.0584 (2019: HK$0.21 which was equivalent to approximately In the Reporting Year, the profit attributable to shareholders of the Company decreased by RMB977.1 million In the Reporting Year, the profit attributable to shareholders of the Company decreased non-controlled projects) of mainly due to decrease in net profit from projects (including the controlled and in Apart from the decrease corporate finance costs of RMB245.4 million. RMB727.3 million and increase in of intangible operating revenue, the decrease in net profit from projects resulted from increase in amortisation newly acquired Expresswaysrights and finance costs at project level in light of full year consolidation of the three measures which are free toll of small passengers vehicles during Spring Festival holiday was extended for 9 days measures which are free toll of small passengers for 79 days nationwide from 17 February 2020 to 5 May 2020. on original basis and exempted tolls collection exemption measures was partially offset by the full year consolidation The impact caused by the temporary toll to the Group since 8 of the revenue of three newly acquired Expressways in Hubei Province (consolidated November 2019). The Group to RMB160.5 million in 2020 ( the Company decreased by 85.9 percent The decrease in the Group of associates and a joint venture and excludes non-cash gains and losses. EBITDA includes share of results I. RESULTS OVERVIEW OF OPERATING Share of results of associates Company Profit attributable to shareholders of the Basic and diluted earnings per share Dividend (1) Gross profit Operating profit Earnings before interests, tax, depreciation and amortisation ( Finance costs Share of result of a joint venture Key operating results figures Key operating Revenue FINANCIAL REVIEW FINANCIAL % -5.0 -25.3 -24.2 -30.4 -17.6 -16.2 -20.9 -12.9 493.0 466.2 462.8 Change

% 1.9 8.3 1.0 6.0 0.9 3.1 2.1 40.3 22.7 13.7 100.0 in the Reporting Year revenue ” of total toll Percentage

Revenue “ 000 ’ 2019 57,292 31,631 26,151 92,668 62,949 687,671 415,395 250,345 181,990 RMB 1,217,129 3,023,221

in prior years. The said change can facilitate e Expressway were consolidated to the Group e Expressway were consolidated to the Group ” ’ % 7.2 6.2 5.3 5.1 2.6 1.9 31.7 18.1 11.8 10.1 . 100.0 ” revenue Percentage of total toll

000 s toll revenue decreased by 24.1 percent to RMB2,206.0 million s toll revenue decreased by 24.1 percent ’ ’ Year 73,257 54,840 909,122 520,911 339,748 288,990 206,381 179,100 152,521 147,171 RMB 2,872,041 Reporting

Other income, gains and losses – net “ s revenue from and related to toll road operations. The comparative figures were not s revenue from and related to toll road operations. The comparative figures were ’ e Expressway ’ Business Review – Performance of Expressways and Bridges Business Review – Performance of Expressways the review of the Group restated. In the Reporting Year, other revenue related to normal toll roads operation of RMB47.8 million mainly include In the Reporting Year, other revenue related to normal toll roads operation of RMB47.8 million) and handling income the income from service area and gas station of RMB36.2 million (2019: RMB25.0 from toll fee collection of RMB1.8 million (2019: RMB1.0 million). Other revenue related to normal toll roads operations is included as part of while it was presented in Cangyu Expressway Total toll revenue Other revenue Weixu Expressway Changzhu Expressway Hancai Expressway Han-Xiao Expressway Han Jinxiong Expressway Controlled Projects GNSR Expressway Suiyuenan Expressway Daguangnan Expressway in the Reporting Year. The detailed review on the toll revenue of each expressways and bridges were shown in in the Reporting Year. The detailed review “ project Analysis of toll revenue by each controlled The Group recorded total toll revenue of RMB2,872.0 million in the Reporting Year, representing a decrease of in the Reporting Year, representing a decrease total toll revenue of RMB2,872.0 million The Group recorded exemption toll of temporary impact the to due mainly was decrease The 2019. with compared as percent 5.0 Expressway and Han measures. Daguangnan Expressway, Hancai of toll revenue of the three newly acquired expressways in on 8 November 2019. Excluding the consolidation Group Hubei province in November 2019, the The Group recorded total revenue of RMB2,919.8 million in the Reporting Year, which comprised total toll total toll in the Reporting Year, which comprised total revenue of RMB2,919.8 million The Group recorded million. normal toll roads operation of RMB47.8 million and other revenue related to revenue of RMB2,872.0 Toll revenue MANAGEMENT DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU Revenue II. RESULTS ANALYSIS OF OPERATING

Annual Report 2020 34 35 Annual Report 2020 % % 0.8 2.7 1.4 5.7 -5.1 -0.7 -0.7 33.6 34.6 14.1 34.6 48.3 -22.7 -12.8 -16.9 409.6 531.7 714.8 Change Change

% % 1.5 1.1 2.1 7.9 9.6 3.5 1.2 6.4 3.8 12.0 10.3 15.7 13.5 63.3 14.2 33.9 100.0 100.0 of total of total Percentage Percentage

000 000 ’ ’ 2019 2019 14,949 10,983 21,656 79,494 96,780 34,990 12,441 65,094 38,929 104,177 158,666 136,311 121,054 640,588 143,660 342,502 RMB RMB 1,011,137 1,011,137 YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU

% % 1.1 0.6 8.4 5.8 7.5 7.4 4.2 2.4 10.3 13.3 13.1 10.3 10.1 69.8 10.7 25.0 100.0 100.0 of total of total Percentage Percentage

000 000 ’ ’ MANAGEMENT DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT Year Year 8,487 15,074 78,928 56,755 32,352 139,151 181,097 178,295 140,056 114,822 136,808 101,369 949,918 145,690 102,257 340,095 RMB RMB 1,360,577 1,360,577 Reporting Reporting

e Expressway ’ Total Toll highways and bridges operating expenses Toll highways and bridges expenses maintenance Taxes and surcharges Depreciation of other fixed assets Amortisation of intangible operating rights Staff costs Analysis of cost of services by nature Changzhu Expressway Hancai Expressway Han-Xiao Expressway Han Suiyuenan Expressway Cangyu Expressway Total Jinxiong Expressway Controlled Projects GNSR Expressway Daguangnan Expressway Weixu Expressway increase in RMB347.4 million cost of services during the Reporting Year from the three expressways newly newly Year from the three expressways million cost of services during the Reporting increase in RMB347.4 in November 2019. acquired in Hubei Province controlled project Analysis of cost of services by each In the Reporting Year, the total cost of services of the Group amounted to RMB1,360.6 million (2019: (2019: amounted to RMB1,360.6 million the total cost of services of the Group In the Reporting Year, with 2019. million or 34.6 percent as compared representing an increase of RMB349.5 RMB1,011.1 million), point the Reporting Year, and 13.2 percentage services/revenue) was 46.6 percent in Cost ratio (cost of was measures, even though no toll revenue the period of temporary toll exemption higher than 2019. During recorded in accordance with the unit-of-usage of intangible operating rights was recognised, the amortisation of impact consolidation to due mainly was services of cost in increase The volume. traffic the on based basis Cost of services (1) to to ” 52.4% 29.8% 38.2% 66.6% 71.9% 76.9% 38.9% 67.2% 51.6% 31.5% 56.3% Gross Margin

2019 000 ’ 9,975 13,710 27,574 24,020 22,302 874,627 529,005 279,084 129,291 102,496 RMB 2,012,084 Gross Profit

(1) s overall weighted average interest rate in ’ Other income, gains and losses – net 34.4% 23.8% 41.1% 53.4% 62.9% 65.9% 49.2% 51.8% 44.8% 24.7% 50.0% “ Gross Margin

000 ’ Reporting Year 53,040 17,750 22,603 93,087 44,809 79,048 575,644 349,936 172,674 150,670 RMB 1,559,261 Gross Profit

s general and administrative expenses in the Reporting Year amounted to RMB246.9 million, in the Reporting Year amounted to RMB246.9 million, s general and administrative expenses s finance income in the Reporting Year amounted to RMB26.4 million (2019: RMB40.8 million), million), RMB40.8 million (2019: RMB26.4 to amounted Year Reporting the income in s finance s finance costs in the Reporting Year increased by 95.9 percent to RMB805.8 million as compared s finance costs in the Reporting Year increased by 95.9 percent to RMB805.8 million ’ s other income, gains and losses – net was RMB25.1 million in the Reporting Year (2019: RMB179.4 s other income, gains and losses – net was RMB25.1 million in the Reporting Year ’ during the Reporting Year while the comparative figures of RMB31.3 million was not restated. during the Reporting Year while the comparative figures of RMB31.3 million was ’ ’ ” e Expressway ’ Revenue profit/revenue Gross margin = Gross bank and other non-current receivables during the Reporting Year. The Group of the acquisition from the expense resulting interest in to increase due 2019, mainly in RMB411.2 million with three expressways in Hubei Province in November 2019. The Group the Reporting Year was 4.15 percent (2019: 4.33 percent). “ Finance income/Finance costs Group The drop in interest income from which was 35.4 percent lower than 2019. The decrease was mainly due to the The Group due to (i) decrease in one-off million), which was 86.0 percent lower than 2019. The decrease was mainly no and (iii) million of RMB21.6 in government subsidy (ii) decrease of RMB53.2 million; received compensation was reclassification (2019: RMB37.7 million) during the Reporting Year. There gain on liquidation of a subsidiary of other revenue related to normal toll roads operations from General and administrative expenses General and administrative The Group RMB271.8 million in 2019, mainly due to decrease in staff cost of representing a decrease of 9.2 percent from fee of RMB9.7 million in the Reporting Year. RMB13.8 million and legal and professional Other income, gains and losses – net Total (1) Changzhu Expressway Hancai Expressway Han-Xiao Expressway Han Jinxiong Expressway Cangyu Expressway Controlled Projects GNSR Expressway Suiyuenan Expressway Daguangnan Expressway Weixu Expressway Gross profit in the Reporting Year was RMB1,559.3 million, which was RMB452.8 million lower than 2019. than 2019. which was RMB452.8 million lower Year was RMB1,559.3 million, Gross profit in the Reporting than 2019. which was 13.2 percentage point lower the Reporting Year was 53.4 percent, Gross profit margin in profit by each controlled project Analysis of gross Gross profit

MANAGEMENT DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU

Annual Report 2020 36 37 Annual Report 2020 YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU MANAGEMENT DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT s share of results of associates and a joint venture decreased by 64.6 percent to RMB124.4 million in by 64.6 percent to RMB124.4 million in associates and a joint venture decreased s share of results of ’ Share of post-tax profit of GWSR Expressway in the Reporting Year decreased by 36.3 percent to RMB56.5 by 36.3 percent to RMB56.5 Share of post-tax profit of GWSR Expressway in the Reporting Year decreased to RMB442.4 million in the million. Toll revenue at the project company level decreased by 24.1 percent Reporting Year. Share of post-tax loss of Pazhou Port in the Reporting Year was RMB6.8 million (2019: Nil). The first phase first phase The million (2019: Nil). RMB6.8 was in the Reporting Year of Pazhou Port loss Share of post-tax commenced during the Reporting Year and there was no revenue of construction of the Pazhou Port has of post-tax loss mainly represented the general and administrative recognized in the Reporting Year. The share expense recorded during the Reporting Year. Reporting Year. In addition to the impact brought by temporary toll exemption measures, the decrease was was decrease the measures, exemption toll temporary by brought impact the to addition In Year. Reporting parallel to is which Bridge, Queshi fee for of toll cancellation resulting from the diversion to traffic attributed Shantou Bay Bridge, since 1 January 2020. in the Reporting Year amounted to RMB7.8 million (2019: share Share of post-tax loss of Qinglian Expressway percent to 20.6 level dropped by the project company revenue at post-tax profit of RMB24.7 million). Toll of RMB664.7 million in the Reporting Year. to traffic diversion resulting from the commencement of operation of Nansha Bridge since April 2019, the of operation of Nansha Bridge since April 2019, the to traffic diversion resulting from the commencement vehicles with 40 seats or above on Humen Bridge since August 2019 implementation of trucks and passenger 2020 to 15 May 2020 due to the vortex vibration effect. and the traffic control effective from 5 May Bridge in the Reporting Year decreased by 45.3 percent to RMB17.6 Share of post-tax profit of Shantou Bay level decreased by 33.4 percent to RMB135.9 million in the million. Toll revenue at the project company tax profit decreased because to no prior year tax concession was recorded during the Reporting Year (2019: (2019: was recorded during the Reporting Year because to no prior year tax concession tax profit decreased RMB13.8 million). in the Reporting Year decreased by 78.5 percent to RMB20.9 million. Share of post-tax profit of Humen Bridge decreased by 54.9 percent to RMB468.1 million in the Reporting Toll revenue at the project company level by temporary toll exemption measures, the decrease was attributed Year. In addition to the impact brought The Group of temporary toll exemption measures. RMB351.2 million) due to implementation the Reporting Year (2019: RMB43.9 by 59.4 percent to Year decreased Road in the Reporting of Northern Ring Share of post-tax profit in the by 24.5 percent to RMB574.2 million at the project company level decreased million. Toll revenue of post- toll exemption measures, share addition to the impact brought by temporary Reporting Year. In Share of results of associates and a joint venture Share of results % N/A YoY -36.3 -64.6 -59.4 -78.5 -45.3 -74.2 change turned loss

000 ’ Year (7,809) (6,775) Share of results 56,533 43,862 20,931 17,613 67,822 124,355 RMB Reporting

% — YoY -24.1 -33.2 -24.5 -54.9 -33.4 -20.6 -35.1 change

— Revenue 000 ’ Year 442,428 574,217 468,141 135,918 664,674 RMB 2,285,378 1,842,950 Reporting

% 35.0 24.3 30.0 45.0 Profit 23.63 18.446 Sharing ratio

The management team continues to optimize the overall debt structure of the Group. During this process, inter- The management team continues to optimize the overall debt structure of the Group. and such companies level, and the holding level projects controlled the at incurred were interests loan company interests would be eliminated ultimately at the consolidated level. in corporate finance costs of RMB245.4 million. Apart from the decrease in revenue, the decrease in net profit in corporate finance costs of RMB245.4 million. Apart from the decrease in revenue, and finance costs at project from projects resulted from increase in amortisation of intangible operating rights Province. During the Hubei in Expressways three newly acquired consolidation of the year of full in light level rights is still required to period of temporary toll exemption measures, the amortisation of intangible operating expressways three of acquisition the from resulted mainly costs finance corporate in increase The recorded. be in the Reporting Year. in Hubei Province in November 2019, with the increase in average external debt balance Profit attributable to shareholders of the Company Profit attributable to shareholders to its shareholders of RMB160.5 million in the Reporting Year, The Company reported profit attributable was mainly due to decrease in representing a decrease of 85.9 percent as compared with 2019. The decrease RMB727.3 million and increase net profit from projects (including the controlled and non-controlled projects) of Income tax expense in the Reporting Year decreased by 8.9 percent to RMB278.1 million. Total income tax expense of the Group during the Reporting Year. There was no prior year tax concession It was because profit before tax decreased million) during the Reporting Year. recorded by GNSR Expressway (2019: RMB95.9 Sub-total Joint venture GWSR Expressway Total Northern Ring Road Humen Bridge Shantou Bay Bridge Qinglian Expressway Pazhou Port Associates Analysis of share of results of associates and a joint venture and the revenue of their respective venture and the revenue of their respective of results of associates and a joint Analysis of share entities MANAGEMENT DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU

Annual Report 2020 38 39 Annual Report 2020 % % -44.0 -43.4 -38.9 -48.4 -33.3 -41.5 -24.9 -44.0 -85.9 -44.0 -64.6 -48.8 -48.7 -11.4 -88.3 -59.2 276.3 148.2 -100.0 Change Change turned loss turned profit

% 76.4 23.6 % 100.0 2.7 3.5 3.7 1.6 0.2 0.7 0.1 -0.2 of total 76.4 36.1 14.6 13.4 of total Percentage

Percentage

000 ’ 2019 000 760 44,340 26,322 ’ (56,640) 2019 351,223 4,021 (165,585) (199,826) RMB (3,372) 40,331 52,666 55,378 23,422 10,146 1,137,590 1,137,756 1,488,979 537,830 216,714 199,860 RMB YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU

1,137,756

% 83.7 16.3 — % 100.0 4.6 4.0 4.3 2.3 2.0 0.8 -5.1 83.7 39.9 17.4 13.5 of total of total Percentage

Percentage

000 ’ MANAGEMENT DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT Year — 5,168 000 10,747 ’ (29,054) Year 160,491 637,359 124,355 761,714 5,678 (410,957) (177,127) RMB 30,255 32,370 17,594 15,131 35,105 (38,606) Reporting 637,359 304,245 132,480 103,107 RMB

Reporting

(1) e Expressway ’ of associates and a joint venture Representing share of results Hancai Expressway Jinxiong Expressway Han Xian Expressway Total Suiyuenan Expressway Weixu Expressway Han-Xiao Expressway Daguangnan Expressway Changzhu Expressway Cangyu Expressway interests Controlled Projects GNSR Expressway of the Company (1) project after elimination of inter-company loan Analysis of net profit by each controlled Corporate expenses Corporate income/gains, net Corporate finance income Corporate finance costs Profit attributable to shareholders projects Net profit from projects Withholding tax on PRC dividend/income projects Net profit from controlled Net profit from non-controlled Analysis of the profit attributable to shareholders of the Company after elimination of inter- of the Company after elimination attributable to shareholders Analysis of the profit company loan interests % ) has ) ” s Bank -59.2 -43.4 -38.0 -46.7 -27.0 -80.9 -24.9 -40.7 ’ 348.5 -100.0 Change 3,089.9 2,935.9

% 2.7 4.1 3.1 1.6 0.7 -1.0 -0.1 -0.2 76.2 36.4 15.4 13.5 of total Percentage

). The exchange rate adopted by the ” 000 ’ (770) 2019 (2,505) 40,331 60,842 45,126 23,422 10,146 (15,287) HK$ 537,830 227,212 199,860 RMB “ 1,126,207

— % 7.6 1.5 3.0 1.0 -4.2 78.7 52.2 24.2 18.2 -11.8 -13.0 of total Percentage

— 000 ’ Year 8,614 6,020 17,594 44,385 (24,562) (76,050) (68,566) 459,033 304,245 140,889 106,464 RMB Reporting

e Expressway ’ Analysis of share of results of associates and a joint venture and the revenue of their respective entities their of revenue and the venture joint a and associates of results of share of Analysis of China, for the five business days preceding the date of declaration of dividend. year ended 31 December 2020 amounts to HK$0.07 which is equivalent to approximately RMB0.0584 (2019: year ended 31 December 2020 amounts to HK$0.07 which is equivalent to approximately a dividend payout ratio of HK$0.39 which was equivalent to approximately RMB0.3500) per share, representing 60.9 percent (2019: 51.5 percent). Dividend payable to shareholders will be paid in Hong Kong dollars ( by the People Company for its dividend payable is the average middle rate of HK$ to RMB, as announced The Directors have recommended the payment of final dividend for 2020 of HK$0.07 which is equivalent to to equivalent is which HK$0.07 of 2020 for dividend final of payment the recommended have Directors The share per RMB0.1880) approximately to equivalent was which HK$0.21 (2019: RMB0.0584 approximately Company on 11 June 2021. payable to shareholders whose names appear on the register of members of the held on 2 June 2021, the final Subject to the approval of shareholders at the Annual General Meeting to be during the Reporting Year dividend will be paid on or about 29 June 2021. No interim dividend was declared the total dividend for the (2019: HK$0.18 which was equivalent to approximately RMB0.1620) per share, RMB28.5 million granted for the additional investment in Guangdong Province during the Reporting Year. The RMB28.5 million granted for the additional investment in Guangdong Province the drop in interest income from bank due to million mainly decreased by RMB15.6 finance income corporate and other non-current receivables at corporate level during the Reporting Year. Final dividend because the decrease in profit from PRC subsidiaries during the Reporting Year led to corresponding decrease because the decrease in profit from PRC decrease to due mainly million RMB22.7 by decreased expense corporate The provided. tax withholding in cost finance corporate the addition, In Year. Reporting the during fee professional and legal and staff cost in to increase in average external debt balance in the Reporting Year as increased by RMB245.4 million mainly due Province in November 2019. compared with that of 2019 due to the acquisition of three expressways in Hubei in government subsidy of The corporate income/gain decreased by RMB39.2 million mainly due to decrease In the Reporting Year, net profit from non-controlled projects (analysis shown in the aforementioned table non-controlled projects (analysis shown in the aforementioned table In the Reporting Year, net profit from “ million as compared with 2019. decreased by 64.6 percent to RMB124.4 million, mainly RMB27.6 by decreased dividend/income tax on PRC withholding the level, the corporate At Hancai Expressway Jinxiong Expressway Han Xian Expressway Total Weixu Expressway Han-Xiao Expressway Daguangnan Expressway Changzhu Expressway Cangyu Expressway Controlled Projects GNSR Expressway Suiyuenan Expressway Analysis of net profit by each controlled project before elimination of inter-company loan loan before elimination of inter-company by each controlled project Analysis of net profit interests MANAGEMENT DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU

Annual Report 2020 40 41 Annual Report 2020 % 5.6 0.1 -1.4 -1.2 -2.0 -3.4 -11.3 -71.4 150.2 Change

000 ’ 2019 700,000 996,522 7.6 times 0.7 times RMB 1,435,062 1,907,554 10,571,655 36,797,875 23,169,125 18,356,703 14,520,385

000 ’ Year YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 200,000 RMB 3.1 times 0.4 times 1,516,004 1,909,152 2,492,974 Reporting 10,424,891 36,367,600 22,713,855 17,731,090 12,874,275

s total liabilities comprised mainly of bank borrowings borrowings s total liabilities comprised mainly of bank s total assets comprised mainly of intangible operating s total assets comprised mainly of intangible ’ ’ MANAGEMENT DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT s total equity increased by RMB25.0 million to RMB13.7 billion (31 (31 billion RMB13.7 to million RMB25.0 by increased equity total s ’ s total assets amounted to RMB36.4 billion which was 1.2 percent lower s total assets amounted to RMB36.4 billion ’ s total liabilities amounted to RMB22.7 billion which was 2.0 percent lower s total liabilities amounted to RMB22.7 billion ’ Corporate bonds Notes payable Other borrowing of RMB2.5 billion (31 December 2019: RMB1.0 billion); loans from non-controlling interests of RMB77.7 million of RMB2.5 billion (31 December 2019: RMB1.0 billion); loans from non-controlling million (31 December 2019: (31 December 2019: RMB71.9 million); loan from a joint venture of RMB147.0 2019: RMB3.2 billion). RMB147.0 million); and deferred income tax liabilities of RMB3.3 billion (31 December Group the 2020, December 31 at As to the shareholders of the December 2019: RMB13.6 billion), of which RMB10.4 billion was attributable Company (31 December 2019: RMB10.6 billion). December 2019: RMB1.4 billion). As at 31 December 2020, the Group The Group than the balance as at 31 December 2019. RMB14.5 billion); other borrowing of RMB0.2 billion (31 December of RMB12.9 billion (31 December 2019: RMB1.9 billion); notes payable 2019: RMB0.7 billion); corporate bonds of RMB1.9 billion (31 December 2019: Assets, Liabilities and Equity As at 31 December 2020, the Group The Group than the balance as at 31 December 2019. 2019: RMB32.4 billion); investments in a joint venture and associates rights of RMB31.7 billion (31 December (31 billion RMB1.5 of equivalents cash and cash and billion); RMB1.9 2019: December (31 billion RMB2.0 of Current ratio EBITDA interest coverage the Company Equity attributable to the shareholders of Total liabilities Cash and cash equivalents Total debts Of which: bank borrowings Key financial position figures Key financial position Total assets III. FINANCIAL POSITION ANALYSIS OF - % 2.0 1.7 0.2 8.2 5.6 9.1 N/A N/A N/A -1.4 -1.2 -2.0 -2.0 -64.3 -12.5 150.2 -100.0 -100.0 Change

— — — 000 ’ 2019 71,914 996,522 147,000 805,148 500,000 200,000 RMB 1,907,554 3,244,298 1,870,676 1,435,062 13,628,750 10,571,655 36,797,875 32,369,121 23,169,125 13,715,237

— — 000 ’ Year 4,318 73,350 94,500 52,500 878,482 200,000 RMB 1,909,152 2,492,974 3,300,573 2,023,718 1,516,004 Reporting 13,653,745 10,424,891 36,367,600 31,712,956 22,713,855 11,995,793

s cash was deposited in commercial banks, with no s cash was deposited in commercial banks, with no ’ s cash and cash equivalents amounted to RMB1,516.0 million which was 5.6 percent which was million to RMB1,516.0 amounted equivalents cash and cash s ’ has maintained an appropriate level of cash on hand so as to prevent liquidity risk. As at the end of the the risk. As at the end of liquidity as to prevent level of cash on hand so an appropriate has maintained Group Year, the Reporting higher than the level at 31 December 2019. The Group deposit in non-bank institutions. of the Company Of which: Equity attributable to the shareholders the of Cash flows improving liquidity. The Group It has been the primary objective of the Group to focus on preventing risk and – long-term portion long-term non-controlling interests – due within 1 year Loans from – portion long-term – Loan from a joint venture – due within 1 year Deferred income tax liabilities Total equity – long-term portion long-term – portion long-term Other borrowing – due within 1 year – portion long-term Corporate bonds – due within 1 year – Notes payable – long-term portion associates Investments in a joint venture and Cash and cash equivalents Total liabilities Approximately 90.0 % of which: Bank borrowings – due within 1 year Items Total assets % of which: Approximately 90.0 Intangible operating rights Analysis of major assets, liabilities and equity items Analysis of major MANAGEMENT DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU

Annual Report 2020 42 43 Annual Report 2020 000 ’ 2019 (1,066) (957,094) RMB 2,142,061 2,413,653 2,393,222 1,435,062 (5,512,808)

000 ’ (872) Year 81,814 (238,526) RMB 2,103,180 1,435,062 1,516,004 Reporting (1,782,840)

YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU MANAGEMENT DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT payable of RMB1,493.8 million (2019: RMB996.4 million) and nil addition of loan from a joint venture (2019: payable of RMB1,493.8 million (2019: RMB996.4 million) and nil addition of loan RMB52.5 million). interests of RMB72.1 million (2019: RMB351.6 million); repayments of loans from non-controlling interest interest non-controlling from of loans repayments million); RMB351.6 (2019: million RMB72.1 of interests liabilities (including interest) of of subsidiaries of RMB4.6 million (2019: RMB28.1 million); payment for lease subsidiary (2019: RMB850.0 RMB11.4 million (2019: RMB11.8 million); nil repayment of loan from a fellow The inflow mainly included million) and nil repayment of corporate bonds (2019: RMB90.0 million) was made. net proceed from notes the drawdown of bank borrowings of RMB771.0 million (2019: RMB5,453.0 million); Net cash used in financing activities during the Reporting Year amounted to RMB1,782.8 million (2019: net cashNet cash used in financing activities during mainly included repayment of bank borrowings of RMB2,389.7 generated of RMB2,413.7 million). The outflow other borrowings of RMB500.0 million (2019: Nil); payment repayment of million (2019: RMB1,833.1 million); the to paid dividend million); RMB306.4 (2019: million RMB755.3 of fees related and costs finance of paid to non-controlling shareholders of the Company of RMB314.5 million (2019: RMB617.3 million); dividend Net cash used in investing activities during the Reporting Year amounted to RMB238.5 million (2019: the Reporting Year amounted to RMB238.5 million (2019: Net cash used in investing activities during mainly capital expenditures of RMB338.1 million (2019: RMB5,967.0 RMB5,512.8 million). The outflow was dividend distributions from associates and a joint venture of RMB47.3 million). The inflow mainly consisted of received in aggregate of RMB23.6 million (2019: RMB28.2 million); million (2019: RMB400.6 million); interest RMB25.4 million) and proceeds from (2019: of RMB27.5 million compensation arrangement proceeds from of RMB1.2 million (2019: Nil). disposal of property, plant and equipment Net cash generated from operating activities during the Reporting Year amounted to RMB2,103.2 million (2019: Net cash generated from operating activities (2019: million RMB2,320.8 of operations from generated cash of sum the was which million), RMB2,142.1 enterprise RMB95.9 million) less PRC tax (2019: income PRC enterprise refund of and no million) RMB2,429.2 million (2019: RMB383.0 million). income tax and withholding tax paid of RMB217.6 Increase/(decrease) in cash and cash equivalents Increase/(decrease) in Cash and cash equivalents at 1 January and cash equivalents Effect of exchange rate changes on cash Cash and cash equivalents at 31 December operating activities Net cash generated from activities Net cash used in investing from financing activities Net cash (used in)/generated Analysis of cash flow movement Analysis of cash flow ) to ” s current s current ’ EBITDA “ s current assets and amounted to s current assets and ’ ). ” total external debts “ s financial policies to maintain a rational capital structure which aims to enhance s financial policies to maintain a rational capital structure which aims to enhance ’ s steady operating cash flow and appropriate financing arrangements can satisfy its future capital its future capital s steady operating cash flow and appropriate financing arrangements can satisfy ’ Capital structures It is also one of the Group levels on the other hand. profitability on one hand and to ensure financial leverage ratios to remain at safe of RMB76.0 million (2019: Nil) and no payments for considerations to acquisition of subsidiaries, net of cash of subsidiaries, net of cash of RMB76.0 million (2019: Nil) and no payments for considerations to acquisition aforementioned, no material acquired (2019: RMB5,841.6 million) during the Reporting Year. Apart from the management believes that capital expenditure was incurred during the Reporting Year. Going forward, the the Group expenditures and investments needs. Capital expenditures and investments million (2019: RMB5,967.0 During the Reporting Year, total capital expenditures amounted to RMB338.1 assets included (1) payments million). Capital expenditures related to intangible operating rights and fixed million (2019: RMB120.7 of construction costs of toll highways and bridges upgrade services of RMB247.4 (2019: RMB4.7 million). During million) and (2) purchase of property, plant and equipment of RMB14.7 million Limited, Company Port Pazhou Guangzhou associate, an in injection capital a was there Year, Reporting the expenses (profit and loss impact). times) 9.0 2019: December (31 times 4.1 was 2020 December 31 ended year the for coverage interest Cash generated from operating activities and interest expense (cashflow which was measured as the ratio of cash impact) to interest expenses (cashflow impact). EBITDA to total external debt ratio for the year ended 31 December 2020 was 14.0 percent (31 December December (31 percent 31 December 2020 was 14.0 external debt ratio for the year ended EBITDA to total as the ratio of EBITDA to the aggregate balance of bank borrowings, 2019: 16.3 percent) which was measured payable ( other borrowing, corporate bonds and notes coverage for the year ended 31 December 2020 was 1.9 times Profit before interest and income tax interest measured as the ratio of profit before interest and tax to interest (31 December 2019: 5.9 times) which was EBITDA interest coverage and other financial ratios EBITDA interest coverage and 7.6 times) December 2019: (31 times 2020 was 3.1 December ended 31 year for the coverage interest EBITDA ( tax, depreciation and amortisation interests, earnings before of as the ratio was measured which interest expenses (profit and loss impact). RMB2,787.6 million (31 December 2019: RMB1,305.1 million), which consisted of bank borrowings of RMB878.4 which consisted of bank borrowings of (31 December 2019: RMB1,305.1 million), RMB2,787.6 million million 2019: bank borrowings of RMB805.1 bonds of RMB1,909.2 million (31 December million and corporate Management will continue to take a prudent approach to effectively and other borrowings of RMB500.0 million). the existing cash, future operating cash flow and cash return from match capital and debt commitments with investments to manage liquidity risk. The current ratio (current assets over current liabilities) as at 31 December 2020 was 0.4 times (31 December December (31 times 0.4 was 2020 December 31 at as liabilities) over current assets (current current ratio The 2019: was RMB1,878.0 million (31 December at 31 December 2020, current assets balance 2019: 0.7 times). As million (31 December 2019: RMB2,535.0 and current liabilities balance was RMB4,232.9 RMB1,798.1 million) of the Group equivalents were the major components million). Cash and cash 2019: RMB1,435.1 million). The Group as at 31 December 2020 (31 December RMB1,516.0 million year) of external debts (i.e. maturities within one 2020 mainly included short-term liabilities as at 31 December Current ratio MANAGEMENT DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU

Annual Report 2020 44 45 Annual Report 2020 000 ’ 2019 2,490 55.4% 63.0% 71,914 10,838 124.2% 700,000 996,522 147,000 RMB 1,907,554 (1,435,062) 16,921,641 13,628,750 10,571,655 30,550,391 14,520,385 18,356,703 RMB800 million seven-year corporate bonds (Phase 2) 28 October 2016 RMB800 million 26 October 2023 3.18% 26 October 2021 The Shanghai Stock Exchange

— 000 ’ Year RMB500 million three-year medium term notes (2020 Phase 2) 14 August 2020 RMB500 million 14 August 2023 3.54% 14 August 2021 National Association of Financial Market Institutional Investors

54.3% 62.5% 77,668 30,021 118.8% 200,000 147,000 RMB 1,909,152 2,492,974 Reporting (1,516,004) 16,215,086 13,653,745 10,424,891 29,868,831 12,874,275 17,731,090 RMB200 million five-year corporate bonds (Phase 2) 28 October 2016 RMB120 million 26 October 2021 3.60% 26 October 2021 The Shanghai Stock Exchange

YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU RMB1,000 million three-year medium term notes (2020 Phase 1) 10 January 2020 RMB1,000 million 10 January 2023 3.47% 10 January 2021 National Association of Financial Market Institutional Investors

RMB700 million seven-year corporate bonds (Phase 1) 22 March 2016 RMB700 million 21 March 2023 3.38% 21 March 2021 The Shanghai Stock Exchange

MANAGEMENT DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT RMB290 million 21 March 2021 4.10% 21 March 2021 The Shanghai Stock Exchange RMB300 million five-year corporate bonds (Phase 1) 22 March 2016

3.58% 2 December 2021 National Association of Financial Market Institutional Investors RMB1,000 million three-year medium term notes (2019 Phase 1) 2 December 2019 RMB1,000 million 2 December 2022

(1) (2) Drawdown date: Principal: Principal repayment date: Coupon rate (per annum): Upcoming interest payment date: Organization: Stock Exchange: Drawdown date: Principal: Principal repayment date: Coupon rate (per annum): Upcoming interest payment date:

Basic summary information of notes payable: Basic summary information of corporate bonds: (2) Gearing ratio (net debt/total capitalization) Debt to Equity ratio (net debt/total equity) Total liabilities/Total assets ratio (1) Total Equity of the Company Of which: Equity attributable to the shareholders Total capitalization (Net debt + Total equity) Lease liabilities Total debts Less: cash and cash equivalents Net debt Corporate bonds Notes payable Loans from non-controlling interests Loan from a joint venture Amount due to a joint venture Total external debts Bank borrowings Other borrowing Analysis of capital structures Analysis of capital Financial ratios s overall borrowing structure from time to time, so as to optimize its its optimize to as time, so to time from structure overall borrowing s ’ s total external debts in aggregate were RMB17.5 billion (31 December RMB17.5 billion (31 December s total external debts in aggregate were ’ s total debts comprised bank borrowings, other borrowing, corporate bonds, notes bank borrowings, other borrowing, s total debts comprised ’ 2020. Corporate bonds (in four forms) were at fixed rates with coupon rates of 4.10 percent, 3.38 percent, percent, 3.38 percent, 4.10 of rates coupon with rates fixed at were forms) four (in bonds Corporate 2020. with overall effective interest rate at 3.55 percent as at 31 December 3.60 percent and 3.18 percent respectively Notes payable (in three tranches) was at fixed rates with coupon rate 2020 (31 December 2019: 3.55 percent). respectively with overall effective interest rate at 3.73 percent as of 3.58 percent, 3.47 percent and 3.54 percent at 31 December 2020 (31 December 2019: 3.78 percent). and 4.8 percent). Secured external debt ratio was 43.1 percent (31 December 2019: 50.6 percent). The ratio was 43.1 percent (31 December 2019: 50.6 percent). The and 4.8 percent). Secured external debt at 31 December 2020 was 4.00 percent (31 December 2019: 4.34 effective interest rate of total external debt billion was at floating rates and RMB1,094.3 million was at fixed percent). Of the bank borrowings, RMB11.8 rate of 4.08 percent at 31 December 2020 (31 December 2019: 4.37 rates with the overall effective interest rate with the effective interest rate of 6.4 percent at 31 December percent). Other borrowing was at fixed 2019: RMB18.1 billion) which consisted of bank borrowings of RMB12.9 billion (31 December 2019: RMB14.5 2019: RMB18.1 billion) which consisted RMB0.7 billion), corporate bonds of RMB1.9 2019: December (31 billion), other borrowing of RMB0.2 billion and notes payable of RMB2.5 billion (31 December 2019: RMB1.0 billion (31 December 2019: RMB1.9 billion) was 92.7 percent and 7.3 percent (31 December 2019: 95.2 percent billion). Onshore and offshore debts ratio strike a balance between lowering the interest rate and mitigating exchange risk exposure. As at the end of the of the end at As exposure. risk exchange mitigating and rate interest the lowering between balance a strike Group Reporting Year, the loan from a joint venture and lease liabilities. Debt with foreign payable, loans from non-controlling interests, RMB419.8 million (31 December 2019: 2020 was approximately exchange risk exposure as at 31 December such exposure was managed with the forward contract dated 20 June approximately RMB445.5 million), where 2019. is keeping a close watch on the Group on the is keeping a close watch needs, funding overall its to funding a cost-efficient maintain to effectively In order further. portfolio debt both institutions financial with relationship banking close maintain to continue hand, one on will, Group the of of liquidity offered by, and to take advantage to capitalize on the different levels in Hong Kong and China hand, other the and on markets; international of but also these two markets not only of differentials, the cost Financing structures MANAGEMENT DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU As at 31 December 2020, the Group level, the Company out its financing activities at a safe leverage to ensure that the Group is carrying In a way

Annual Report 2020 46 47 Annual Report 2020

2019 2.5% 4.8% 7.2% 37.4% 97.5% 23.5% 76.5% 50.6% 49.4% 16.0% 84.0% 95.2% 16.5% 38.9% of total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Percentage

Year 2.4% 7.3% 28.0% 97.6% 32.6% 67.4% 43.1% 56.9% 25.2% 74.8% 92.7% 16.0% 16.6% 39.4% of total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Reporting Percentage

YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU MANAGEMENT DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT Loans from non-controlling interests of certain subsidiaries were unsecured, interest-free and denominated and denominated Loans from non-controlling interests of certain subsidiaries were unsecured, interest-free based on cash flows in RMB. The carrying amounts of these loans approximated their fair values, calculated discounted at a rate of 4.35 percent (2019: 4.35 percent) per annum. one and two years, except for Loans from non-controlling interests of certain subsidiaries are repayable between loan of RMB4.3 million which is due within one year. Financing method Direct financing Indirect financing Terms of credit Secured Unsecured Interest rate Fixed Floating Currency RMB HKD Within 1 year 1 to 2 year More than 2 years and less than 5 years Above 5 years Onshore Offshore Repayment term Source Analysis of total external debts (bank borrowings, other borrowing, corporate bonds and notes borrowing, corporate bonds and debts (bank borrowings, other Analysis of total external payable) s Bank of China s Bank of China ’ ), the controlling ), the controlling ” Yue Xiu “ s foreign-currency denominated assets and liabilities liabilities and assets denominated foreign-currency s ’ s businesses are principally conducted in the PRC and its functional currency is RMB. Except that currency is RMB. Except that conducted in the PRC and its functional s businesses are principally ’ shares of the Company; These obligations have been duly complied with for the year ended 31 December 2020. These obligations have been duly complied with for the year ended 31 December HK$500,000,000. Such facility agreements will expire on 29 November 2022 and 29 March 2023 respectively. HK$500,000,000. Such facility agreements will expire on 29 November 2022 and occurrence the Upon default. of event an constitute will obligations performance specific above the of Breach to be terminated and all the of such event of default, the relevant bank may declare the relevant facility indebtedness under the relevant facility would become due and payable. (ii) (ii) voting issued the in 35% than less not of interest shareholding indirect or direct a maintains Xiu Yue (iii) Yue Xiu maintains an effective management control over the Company. conditions were RMB870,000,000 and above balances subject to the loan the 2020, 31 December As at 13.21 OF THE LISTING RULES the following of or more a condition that imposes one the Company include of Certain facility agreements ( specific performance obligations on Yue Xiu Enterprises (Holdings) Limited shareholder of the Company: (i) the single largest shareholder of the Company; Yue Xiu remains as As at 31 December 2020, the Group had approximately 2,009 employees of whom about 1,775 were directly As at 31 December 2020, the Group had and supervision of toll projects. The Group remunerates its engaged in the daily operation, management including contributory provident funds and other staff benefits. employees largely based on industry practice, property, plant and equipment, of which approximately RMB159.7 million was contracted but not provided for. property, plant and equipment, of which had no material capital commitments as at 31 December 2020. There Except for the aforementioned, the Group at 31 December 2020. were no significant contingent liabilities as between interest rate cost and foreign exchange risk, optimize its debt structure and control its foreign currency between interest rate cost and foreign exchange exposure. had capital commitments related to intangible operating rights and As at 31 December 2020, the Group certain fund-raising exercises were conducted in Hong Kong, all of its revenue, operating expenses, capital capital expenses, operating revenue, of its all Hong Kong, in were conducted fund-raising exercises certain in denominated are debts external its of percent) (2019: 97.5 percent approximately 97.6 and expenditures Group the Year, Reporting the of end the at As RMB. million (equivalent to approximately RMB419.8 million). The Group mainly include external debt of HK$498.8 the foreign exchange risk. As the foreign exchange market is still had entered into forward contracts to hedge track of developments in the foreign exchange market, strike a balance volatile, the Group will continue to keep Amount due to a joint venture was unsecured, interest-free, repayable on demand and denominated in RMB. repayable on demand and denominated venture was unsecured, interest-free, Amount due to a joint liabilities denominated assets and Foreign-currency The Group Loans from a joint venture was unsecured, interest bearing at an annual rate of People venture was unsecured, interest bearing Loans from a joint and repayable in 2021 and 2022. minus 10%, denominated in RMB Benchmark Interest Rates MANAGEMENT DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU VI. CONTINUING DISCLOSURE REQUIREMENTS UNDER RULE UNDER RULE CONTINUING DISCLOSURE REQUIREMENTS VI. V. EMPLOYEES IV. CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES CAPITAL COMMITMENTS IV.

Annual Report 2020 48 49 Annual Report 2020 HTSC HTSC HSBC HSBC Organizer UBS Securities JP Morgan Chase Mizuho Securities DBS Vickers Securities s popularity and influence in the s popularity and influence in the ’

YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU INVESTOR RELATIONS REPORT RELATIONS INVESTOR Meeting 2020 Interim results roadshow 2020 Interim results roadshow 2020 Interim results roadshow 2019 Annual results roadshow 2019 Annual results roadshow JP Asia Credit Investment Forum 2020 Summer Online Strategy Conference UBS Asia Pacific Industrial Online Company Day UBS Asia Pacific Industrial Online Company

October October March June June June August August Month During the Reporting Year, a number of well-known domestic and international investment banks, including HSBC, During the Reporting Year, a number of reports on the Group, giving positive comments and organizing capital HTSC and DBS Bank, issued research coverage have fully demonstrated the Group market promotions for the Company, which capital market. response to the need to reduce social contacts for pandemic prevention and control, the Group held more than 100 response to the need to reduce social contacts and industry analysts through virtual meetings and webinars during investor meetings with institutional investors positive information and stabilize market, disseminate with the good communication Year to maintain the Reporting the Group extensively collected feedback from investors and market confidence. In the process of communication, and management standards. used it as a reference for improving its governance each project and strategic business developments, in compliance with the rules. business developments, in compliance each project and strategic the Group, disclosure of the regulatory authorities, compliance with requirements on information On the basis of strict continued to proactively communicate with its investor relationsincluding executive directors and senior management, shareholders, potential investors and industry researchers regularly, and was team to meet and exchange views with banks to attend various domestic and overseas investment conferences. In frequently invited by various investment INVESTOR RELATIONS AND COMMUNICATIONS INVESTOR RELATIONS to improve its corporate governance and continues to maintaining a high level of The Group is committed communication regards, the Group maintains effective with the capital market. In this communication mechanism and provision the ensure to researchers industry and investors with dialogue open an and shareholders its with data for operational the market, including monthly information to and accurate of transparent, timely dissemination INVESTOR RELATIONS REPORT INVESTOR RELATIONS 0.07 2020 60.9% 0.0959

0.39 2019 51.5% 0.6799

0.39 2018 53.6% 0.6300

0.36 2017 52.4% 0.5666

0.33 2016 52.5% 0.5491

0.28 2015 0.318 72.2%

0.28 2014 61.0% 0.3642

INVESTOR RELATIONS REPORT RELATIONS INVESTOR YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU shareholders while we recorded consistent growth of our operating results. shareholders while we recorded consistent Earnings per share (RMB) Dividend per share (HKD) Dividend payout ratio CONSISTENT INVESTOR RETURN CONSISTENT INVESTOR for rapid development, the Group also understands that a positive return While leveraging on the capital market Since enterprise. an for philosophy operation the and mission important an as regarded be should shareholders to for over 20 consecutive years, which served as stable return to our listing, the Group has distributed cash dividends Bloomberg Business Weekly: Bloomberg Business Listed Enterprises of the Year 2020 ARA Australian Reporting Awards: Award Australian Annual Report Awards: Bronze Weekly and Economic Digest, which demonstrate the performance, corporate governance and investor relations relations corporate governance and investor Digest, which demonstrate the performance, Weekly and Economic as well as market recognition: efforts of the Company Economic Digest: Enterprise 2020 Hong Kong Outstanding Award 2020 Outstanding Enterprise During the Reporting Year, the Group participated the award ceremony of Quamnet.com at the beginning of the year ceremony of Quamnet.com at the beginning Year, the Group participated the award During the Reporting Business by renowned media outlets such as Bloomberg following honours for listed companies and was awarded the

Annual Report 2020 50 51 Annual Report 2020 ), ” YFHL “ ), the ultimate ultimate the ), ) (Stock Code: ) (Stock Code: ” ” PROFILES ’ ). He oversees the capital capital the oversees He ). ” Chong Hing Bank Yue Xiu Yue “ Guangzhou Yue Xiu Yue Guangzhou “ “ DIRECTORS s Association for Friendship with Foreign s Association for Friendship with Foreign ’ YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU ) (Stock Code: 123), a director of Guangzhou City Construction & & Construction City Guangzhou of director a 123), Code: (Stock ) ” , director of Guangzhou People ), chairman and a non-executive director of Yuexiu Financial Holdings Limited ( ), chairman and a non-executive director Committee Yuexiu Property Yuexiu ” “ GCCD “ , aged 52, was appointed an executive director of the Company on 13 April 2018 and Chairman on 22 on 13 April 2018 and Chairman on an executive director of the Company , aged 52, was appointed assistant to general manager, general manager of capital department, assistant manager of corporate management corporate management department, assistant manager of of capital manager general general manager, to assistant of supervision and auditing department, and deputy general manager of department, assistant to general manager Mr Li is familiar with business of listed companies and the operations of Yue Xiu International Development Limited. Xiu Guangzhou Yue capital operation projects of major of the in all participated he has Since 2008, markets. capital Real Estate Investment Trust, and has and Yue Xiu. Before that, he was also involved in the successful listing of Yuexiu extensive practical experience in capital operations. University. He holds the qualification of a Senior Engineer in China and the certificate in Major Administrative Decision- University. He holds the qualification of a he Government, ) conferred by the Guangzhou Municipal (廣州市重大行政決策論證專家 Making and Argumentation Belt and Road Investment Enterprises, member of Guangzhou Housing is also president of Association of Guangzhou Provident Fund Management Li Mr Association. Enterprises Chinese Kong Hong Council, Companies Listed The of vice-president and Countries the including Xiu Yue and Xiu Yue Guangzhou in positions held successively has and 2001 December in Xiu Yue joined 1111), a director of Guangzhou Yuexiu Financial Holdings Group Co., Ltd. (廣州越秀金融控股集團股份有限公司),1111), a director of Guangzhou Yuexiu Exchange (Shenzhen Stock Code: 987) and the chairman of the board of a company listed on the Shenzhen Stock Limited. directors of Yue Xiu Securities Holdings Company Naval Architecture and Ocean Engineering of South China University of Mr Li graduated from the Faculty of and obtained a master of business administration degree from Jinan Technology majoring in naval architecture, resources, and enhancing the development of information technology system. Mr Li is an executive director of Yuexiu system. Mr Li is an executive director the development of information technology resources, and enhancing ( Limited Company Property Development Co. Ltd. ( Asset Management Limited (the manager of Yuexiu Real Estate Investment a non-executive director of Yuexiu REIT director of Chong Hing Bank Limited ( Trust (Stock Code: 405)), a non-executive Mr Li Feng ( Limited Holdings Xiu Yue Guangzhou of officer capital chief the is He 2019. July ( Limited (Holdings) Enterprises Xiu Yue and Company, the of company holding of Guangzhou department, and the information centre resource management and synergy department, customer plans, and implementing major capital management He is mainly responsible for formulating Yue Xiu and Yue Xiu. the customer companies, optimizing and synergizing the investor relationship of the listed organizing and coordinating EXECUTIVE DIRECTORS EXECUTIVE s ’ s Republic of China. Mr Xie has s Republic of China. Mr Xie has ’ s degree in law and a doctorate degree in management respectively. Mr Xie holds holds Xie Mr respectively. management in degree doctorate a and law in degree s ’ PROFILES , aged 56, was appointed an executive director of the Company on 19 March 2014 and a Deputy on 19 March 2014 and a Deputy an executive director of the Company , aged 56, was appointed ’ , aged 43, was appointed an executive director of the Company on 28 February 2020. He graduated , aged 43, was appointed an executive director , aged 49, was appointed an executive director of the Company on 13 April 2018. Ms Chen is the the is Chen Ms 2018. April 13 on Company the of director executive an appointed was 49, aged , an Jiaotong University in audit studies, and holds a master of business administration degree of the School the School administration degree of master of business holds a and audit studies, University in an Jiaotong ’ DIRECTORS YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU mainly responsible for the work related to cadres management of the state-owned enterprises. He has extensive work mainly responsible for the work related to cadres management of the state-owned experience in administrative management and human resource management. from Henan University majoring in marketing (advertising), Huazhong University of Science and Technology majoring from Henan University majoring in marketing majoring in administration and management, and obtained a bachelor in economic law and Sun Yat-sen University master a literature, in degree a legal professional qualification granted by the Ministry of Justice of the People Municipal Government for years, assumed senior roles in the personnel and organization department of Guangzhou Second Ring Expressway, Guangzhou Western Second Ring Expressway and has extensive experience in the industry. Expressway and has extensive experience Guangzhou Western Second Ring Second Ring Expressway, 2005 to April 2007. as a director of the Company from April He previously served Jing Chen Ms deputy general manager in 2009 and senior deputy general manager in 2011. Mr He graduated from Changsha from Changsha manager in 2011. Mr He graduated in 2009 and senior deputy general deputy general manager Mr He had in Highway and City Roads Engineering. China with a bachelor of engineering degree Transport Institute in Highway of engineer senior a is He Institute. Design and Prospecting Highway Guangzhou of head the of position held Guangzhou of plan thirty-year the of charge in was He Mr China. in engineer civil chartered a and Bridge, and Northern in surveying and designing of Guangzhou 1997 and 1998. He has participated highway network between Chairman on 31 July 2014. He has been General Manager of the Company since January 2013. He was appointed of the Company since January 2013. He 2014. He has been General Manager Chairman on 31 July risks and finance of Guangzhou Yue Xiu. Ms Chen is well versed in risk and internal control management, financial risks and finance of Guangzhou Yue Xiu. extensive experience in establishing a sound system for risk management management of listed companies and has for enterprises. Prior to joining Guangzhou Yue Xiu, Ms Chen worked in and internal control, financial management and Hisense Kelon Electrical Holdings Company Limited. school of business of the Hubei University Mr Xie Yanhui Foods Group Co., Ltd.. She is also a non-executive director of YFHL and Chong Hing Bank. Ms Chen graduated from Bank. Ms Chen of YFHL and Chong Hing director also a non-executive Co., Ltd.. She is Foods Group the Xi certified and auditor of qualification the and Technology of Institute the Beijing of Economics and Management of Yue Xiu in July 2004 and was the deputy general manager of the internal auditor. Ms Chen joined Guangzhou of the audit department and the chairman of the board of directors supervisory (audit) office, the general manager Limited. Ms Chen has participated in building systems to monitor the major of Yue Xiu Securities Holdings Company chief financial officer and general manager of the finance department of Guangzhou Yue Xiu and Yue Xiu. She is an chief financial officer and general manager of Yuexiu Property, a director of GCCD and Guangzhou Yuexiu Fengxing executive director and chief financial officer Mr He Baiqing

Annual Report 2020 52 53 Annual Report 2020 PROFILES ’ DIRECTORS YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU , aged 73, has been an independent non-executive director of non-executive director of independent an , aged 73, has been s Political Consultative Conference. ’ s degrees in law from the University of London. He is the senior partner of D.S. Cheung & Cheung D.S. of partner senior the is He London. of University the from law in degrees s ’ , aged 59, has been an independent non-executive director of the Company since 24 July 1997. , aged 59, has been an independent non-executive , aged 75, has been an independent non-executive director of the Company since 20 November of the Company since 20 November an independent non-executive director , aged 75, has been s and Master and s ’ He is a qualified solicitor in the Australian Capital Territory, Hong Kong, Singapore, England and Wales and received Hong Kong, Singapore, Capital Territory, in the Australian solicitor He is a qualified Bachelor his Co., Solicitors. Law Society of Hong Kong in 1992-1993, a Member of the Bilingual Laws Advisory Committee between 1988 and Law Society of Hong Kong in 1992-1993, of Hong Kong from 1995 to 2004 (between 1997 and 1998 he was 1997 and a Member of the Legislative Council He has served as a Standing Committee Member of the 10th, 11th a member of the Provisional Legislative Council). People and 12th National Committee of the Chinese Mr Cheung Doi Shu of Glorious Sun Enterprises Limited (Stock Code: 393), Yuexiu Property and Joy City Property Limited (Stock Code: Code: (Stock Limited Property City and Joy Property Yuexiu 393), Code: (Stock Limited Sun Enterprises Glorious of above are listed on the Stock Exchange. He is also a director of Bank of 207). The shares of the companies mentioned BOC Group Life Assurance Company Limited, Nanyang Commercial Bank, China Group Insurance Company Limited, Wydoff Limited, Wytex Limited, Trillions Profit Nominees & Secretarial Limited, Sun Hon Investment & Finance Limited, Investments Limited and Cinda Financial Holdings Co., Limited. Mr Lau Services Limited, Helicoin Limited, Wyman and Western District Board between 1988 and 1994, the President of the served as the Chairman of the Central Mr Lau Hon Chuen, GBS, JP, alias Ambrose Lau Lau Hon Chuen, GBS, JP, Mr He obtained a Bachelor of Laws degree from the University of London and is the Company since 20 November 1996. a China-Appointed Attesting Officer and a Notary Public. Mr Lau is the a Solicitor of the High Court of Hong Kong, director non-executive independent an currently is Lau Mr Notaries. & Solicitors Lau, & Chu Messrs. of Partner Senior Mr Fung Ka Pun 30 over has Fung Mr Limited. (Holdings) International Goodwill of the chairman and founder the is Fung Mr 1996. Institute the of member a is He finance. corporate and trading securities stockbroking, finance, in experience of years Mr Fung of the Association of International Accountants. and Administrators and a member of Chartered Secretaries are listed on the Limited, the shares of which non-executive director of Lee Hing Development is also an independent Code: 68). Stock Exchange (Stock INDEPENDENT NON-EXECUTIVE DIRECTORS INDEPENDENT s ’ Code Code “ s healthy growth and s healthy growth and ’ ) contained in Appendix 14 of The Rules 14 of The Rules ) contained in Appendix ” CG Code “ ) on the Stock Exchange. ” s business is vested in the Board, which assumes the responsibility for for assumes the responsibility s business is vested in the Board, which ’ Listing Rules “ ) of the Company plays a crucial role in sustaining high standards of corporate corporate of standards high sustaining in role crucial a plays Company the of ) ” Board “ s overall strategic policies and finances, including: the approval and monitoring of all policy policy all of monitoring and approval the including: finances, and policies strategic overall s ’ s corporate governance practices are based on the principles and the code provisions ( practices are based on the principles s corporate governance ’ ) as set out in the Corporate Governance Code ( ) as set out in the Corporate ” CORPORATE GOVERNANCE REPORT GOVERNANCE CORPORATE YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU and applicable rules and regulations. the Company circumstances at appropriate in advice professional seek independent to able is normally director Each expense, upon making request to the Board. affecting the Company the affecting corporate governance, internal control and risk management systems, matters, overall strategies and budgets, major financial arrangements and major investments, treasury policies, financial statements, dividend policy, financial and operational matters. appointment of directors and other significant advice and services of the Company All directors have full and timely access to all relevant information as well as the compliance of all Board procedures Secretary or external legal advisors, where appropriate, with a view to ensuring Responsibilities The overall management of the Company and is collectively responsible for promoting the success of the Company leadership and control of the Company the interests of the Company. The Board focuses its attention on matters by directing and supervising its affairs in The board of directors ( directors of board The of Company operations. governance and transparency and accountability and practices of the Company are summarised below. The key corporate governance principles THE BOARD The Company has complied throughout the year ended 31 December 2020 with the Code Provisions save for those in 2020 with the Code Provisions throughout the year ended 31 December The Company has complied details of which term under Code Provision A.4.1, of non-executive directors for a specific respect of the appointment will be explained below. governance practices to ensure that these continue to meet the The Company periodically reviews its corporate requirements of the CG Code. conduct and growth of its business. conduct and growth The Company Provisions of Securities ( Governing the Listing The Company recognises the importance of good corporate governance to the Company the importance of good corporate The Company recognises to the corporate governance practices appropriate efforts to identifying and formulating has devoted considerable

Annual Report 2020 54 55 Annual Report 2020 s website s website ’ YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU s website. ’ CORPORATE GOVERNANCE REPORT GOVERNANCE CORPORATE s Bye-Laws, all directors of the Company, including non-executive directors, are subject s Bye-Laws, all directors of the Company, including non-executive directors, are subject ’ procedures for such proposal are available on the websites of the Company and the Stock Exchange. procedures for such proposal are available on the websites of the Company and the re-election. None of the non-executive directors of the Company is appointed for a specific term. However, in for a specific term. However, in re-election. None of the non-executive directors of the Company is appointed accordance with the Company of the Company had retired to retirement by rotation at least once every three years. All the non-executive directors been re-elected. by rotation during the past three years, offered themselves for re-election, and had the Bye-Laws of the Company. The Shareholders may propose a candidate for election as Director in accordance with executive directors to be independent in accordance with the independence guidelines set out in Listing Rules. executive directors to be independent in taking the lead in managing issues involving potential conflict of Through active participation in Board meetings, all independent non-executive directors made valuable contributions to interests and serving on Board committees, the effective direction of the Company. for a specific term, subject to Code Provision A.4.1 stipulates that non-executive directors should be appointed director possessing appropriate professional qualifications, or accounting or related financial management expertise. director possessing appropriate professional directors on the Board meets one-third requirement under the Listing The number of independent non-executive Rules throughout the year. his director of non-executive independent annual confirmation from each written received The Company has non- independent all considered Company The Rules. Listing the of requirements the to pursuant independence the Company. The Board will review and monitor from time to time the implementation of the policy to ensure its ensure its to time the implementation of the policy to time monitor from review and will Board The Company. the effectiveness and application. to one another. None of the members of the Board is related the Board at all times met the requirements of the Listing Rules relating to During the year ended 31 December 2020, non-executive directors with at least one independent non-executive the appointment of at least three independent (www. yuexiutransportinfrastructure.com) and the Stock Exchange (www. yuexiutransportinfrastructure.com) to gender, age, perspectives, including but not limited is based on a range of diversity Selection of Board members professional experience, skills, knowledge and length of service. The cultural and educational background, ethnicity, contribution that the selected Board members could bring to the Board, ultimate decision is based on merit and on the Board. The Board diversity policy is available on the website of with due regard for the benefits of diversity The composition of the Board ensures a balance of skills and experience appropriate to the requirements of the of the and experience appropriate to the requirements the Board ensures a balance of skills The composition of the Board judgment. As at 31 December 2020, and to the exercise of independent business of the Company directors. directors and three independent non-executive comprised four executive refer this annual report, please and up to the date of 2020 ended 31 December during the year of directors For a list of directors is also available on the Company of the Directors. The updated list to page 67 of the Report Composition        Briefings Attended Seminars/

       Read Updates on Laws, Rules & Regulations Materials Corporate Governance/

. According to the records maintained by the Company, the Directors received by the Company, the Directors received . According to the records maintained investments as well as mergers and acquisitions, strategy of digital, human resources, corporate strategy of digital, human resources, corporate investments as well as mergers and acquisitions, Lau Hon Chuen Ambrose Cheung Doi Shu He Baiqing Chen Jing Xie Yanhui (appointed on 28 February 2020) Fung Ka Pun Directors Li Feng Independent Non-Executive Directors Executive Directors CORPORATE GOVERNANCE REPORT GOVERNANCE CORPORATE YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU

an emphasis on governance and ESG management trainings in the following areas: addition, all Directors and senior executives are encouraged to participate in continuous professional development development to participate in continuous professional and senior executives are encouraged addition, all Directors update and governance practices to continuously Rules, companies ordinance/act and corporate relating to the Listing and skills. From time to time, Directors are provided with written training further improve their relevant knowledge skills. materials to develop and refresh their professional training programme and provided training materials to the Directors with During the year, the Company arranged On appointment to the Board, each Director receives a comprehensive induction package covering business business covering package induction comprehensive a receives Director each Board, the to appointment On obligations of as the general, statutory and regulatory procedures of the Company as well operations, policy and under the Listing Rules and other relevant aware of his responsibilities that he is sufficiently being a Director to ensure regulatory requirements. regulations. In updates on the relevant laws, rules and briefed on the amendments to or The Directors are regularly Training for Directors

Annual Report 2020 56 57 Annual Report 2020 1/1 1/1 0/1 1/1 1/1 1/1 1/1 Special General Meeting 1/1 1/1 1/1 1/1 0/1 0/1 1/1 Annual General Meeting YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 4/4 4/4 4/4 4/4 2/4 3/4 4/4 Attendance/Number of Meetings Attendance/Number CORPORATE GOVERNANCE REPORT GOVERNANCE CORPORATE Board meetings

Attendance ’ inspection. ’ s Bye-Laws also contain provisions requiring directors to abstain from voting and not to be counted in the s Bye-Laws also contain provisions requiring directors to abstain from voting and ’ Fung Ka Pun Lau Hon Chuen Ambrose Cheung Doi Shu Li Feng He Baiqing Chen Jing Xie Yanhui (appointed on 28 February 2020) Directors Independent Non-Executive directors Executive Directors In year 2020, the Board held 4 meetings. The attendance record of each member of the Board is set out below: of each member of the Board is set out held 4 meetings. The attendance record In year 2020, the Board The Company has arranged directors and officer liability insurances for its directors and officers. The Company has arranged directors and officer liability insurances for its directors According to current Board practice, any material transaction, which involves a conflict of interests for a substantial According to current Board practice, any material transaction, which involves a at a duly convened Board meeting. The the Board be considered and dealt with by director, will a shareholder or Company material a have associates their of any or directors such which in transactions approving for meetings at quorum interest. financial position of the Company and to enable them to make informed decisions. The Board and each director also financial position of the Company and to the senior management as and when they deemed appropriate. have separate and independent access to meetings are kept by the Company Secretary. Draft minutes are Minutes of all Board meetings and committee meeting and the final version is open normally circulated to directors for comment within a reasonable time after each for directors Notices of regular Board meetings are served to all directors at least 14 days before the meetings. For other Board and Notices of regular Board meetings are served generally given. committee meetings, reasonable notice is complete and reliable information are sent to all directors at least three Board papers together with all appropriate, apprised of the latest developments and to keep the directors committee meeting each Board meeting or days before Board Meetings Practices and Conduct of Meetings Number of Meetings and Directors s website. ’ s affairs. All Board committees of the the of committees Board All s affairs. ’ s financial reporting system, risk management and ’ s existing external auditor. ’ s website (www.yuexiutransportinfrastructure.com) and the Stock Exchange s website (www.yuexiutransportinfrastructure.com) ’ and removal of external auditor. qualified accountant or external auditor before submission to the Board. internal control systems and associated procedures. fees and terms of engagement, and make recommendation to the Board on the appointment, re-appointment fees and terms of engagement, and make recommendation to the Board on the CORPORATE GOVERNANCE REPORT GOVERNANCE CORPORATE YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU (b) (b) To review the financial statements and reports and consider any significant or unusual items raised by the (c) To review the adequacy and effectiveness of the Company Committee is a former partner of the Company include the following: The main duties of the Audit Committee (a) auditor, their by the work performed the by reference to external auditor the with the relationship To review Audit Committee non-executive directors (including one independent non-executive The Audit Committee comprises three independent professional qualifications or accounting or related financial management director who possesses the appropriate Audit the of members the of None committee. the of chairman the is Ambrose Chuen Hon Lau Mr and expertise) BOARD COMMITTEES the and Committee Remuneration the Committee, Audit the namely, committees, three established has Board The Company of the aspects particular for overseeing Committee Nomination terms of reference. The full terms of reference of these committees are Company are established with defined written available on the Company good corporate governance practice. With the support of the senior management, the Chairman is also responsible senior management, the Chairman is practice. With the support of the good corporate governance and appropriate reliable information in a timely manner directors receive adequate, complete and for ensuring that the briefing on issues arising at Board meetings. objectives, policies and strategies approved and delegated by the The General Manager focuses on implementing Board. The Company fully supports the division of responsibility between the Chairman of the Board and General Manager the Chairman of the Board and General the division of responsibility between The Company fully supports of power and authority. to ensure a balance He Baiqing. position of General Manager is held by Mr is held by Mr Li Feng while the The position of the Chairman accordance with effective functioning of the Board in leadership and is responsible for the The Chairman provides CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND CHIEF EXECUTIVE CHAIRMAN

Annual Report 2020 58 59 Annual Report 2020 s ’ 2/2 2/2 2/2 1/1 1/1 1/1 1/1 Meeting Meetings Attended Attended

YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU CORPORATE GOVERNANCE REPORT GOVERNANCE CORPORATE i Feng Members Fung Ka Pun Lau Hon Chuen Ambrose Cheung Doi Shu Members Fung Ka Pun Lau Hon Chuen Ambrose Cheung Doi Shu L Independent Non-Executive Directors Executive Director Independent Non-Executive Directors of the executive directors for the year under review. The Remuneration Committee met once during the year ended 31 December 2020 with 100% attendance to review The Remuneration Committee met once during the year ended 31 December 2020 and remuneration packages and make recommendations on the remuneration policy and structure of the Company in deciding his/her own remuneration, which remuneration will be determined by reference to the performance of the in deciding his/her own remuneration, which practice and conditions. individual and the Company as well as market and attendance record of each Remuneration Committee member The composition of the Remuneration Committee are set out below: The primary objectives of the Remuneration Committee include making recommendations on the remuneration policy The primary objectives of the Remuneration of the executive directors and the senior management, including benefits and structure and remuneration packages payments such as compensation payable for loss or termination of their in kind, pension rights and compensation for procedures transparent establishing for responsible also is Committee Remuneration The appointment. or office structure to ensure that no director or any of his associates will participate developing such remuneration policy and Remuneration Committee comprises one executive director, namely Mr Li Feng and three During the year, the Remuneration Committee Mr Fung Ka Pun, Mr Lau Hon Chuen Ambrose and Mr Cheung Doi Shu, independent non-executive directors, namely of the committee. and Mr Lau Hon Chuen Ambrose is the chairman There are no material uncertainties relating to events or conditions that may cast significant doubt on the Company There are no material uncertainties relating ability to continue as a going concern. appointment of the external auditor. The composition of the Audit Committee and attendance record of each Audit Audit Committee and attendance record external auditor. The composition of the appointment of the are set out below: Committee member The Audit Committee held two meetings during the year ended 31 December 2020 to review the financial results and 31 December 2020 to review the financial held two meetings during the year ended The Audit Committee re- the and systems management risk and control internal procedures, compliance and reporting financial reports, 4 Independent non-executive director BOARD COMPOSITION Executive Director 3 appointments will be based on meritocracy, appointments will be based on meritocracy, 6 ’ Female GENDER Male 1 2 71 or above 3 51-60 AGE 41-50 2 CORPORATE GOVERNANCE REPORT GOVERNANCE CORPORATE YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU Committee formulates the following measurable objectives: gender, age, length of tenure, professional experience objectives: gender, age, length of tenure, professional experience Committee formulates the following measurable operation of highways, finance and capital management, etc.), and knowledge (e.g. legal, accounting, establishment/ proposal to the Board if necessary. reviews the diversity of the Board and makes Board. The Board is currently comprised of diversified members, including 7 directors, one of whom is female of diversified members, including 7 directors, one of whom is female Board. The Board is currently comprised operations, financial, capital construction/operation, toll road directors are experienced in finance, (2019: 1). Four resource management and the other three directors, being the independent administrative management and human experiences in the legal and compliance, acquisition and mergers as non-executive directors, contribute extensive In order to ensure that the Board possesses experiences and skills relevant well as financial businesses to the Board. changes from time to time in new generation, the Nomination and mindset to manage to its strategy and the ability selection of individuals nominated for directorship, the appointment or re-appointment of directors and succession and succession or re-appointment of directors nominated for directorship, the appointment selection of individuals Committee the candidate proposed to the Nomination In assessing the Board composition and planning for directors. would take into account various aspects set out in the Board Diversity for consideration, the Nomination Committee professional background, ethnicity, educational and cultural age, gender, to limited not including but Policy, of service. Board members experience, skills, knowledge and length the on diversity of benefits the for regard due having criteria, objective against considered be will candidates and The Nomination Committee comprises one executive director, namely Mr Li Feng and three independent non- independent Mr Li Feng and three director, namely one executive comprises Nomination Committee The The committee is Ambrose and Mr Cheung Doi Shu. Mr Fung Ka Pun, Mr Lau Hon Chuen executive directors, namely the Chairman of the Board. chaired by Mr Li Feng, of the structure, size and composition the includes reviewing Committee Nomination of the The role and function on the directors and making recommendations independence of the independent non-executive Board, assessing the Nomination Committee

Annual Report 2020 60 61 Annual Report 2020 ) ” 1/1 1/1 1/1 1/1 Meeting Attended Model Code “

YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU CORPORATE GOVERNANCE REPORT GOVERNANCE CORPORATE s general meeting as required by the Articles of Association. s general meeting as ’ Lau Hon Chuen Ambrose Cheung Doi Shu Members Li Feng Fung Ka Pun Executive Director Independent Non-Executive Directors Specific employees who are likely to be in possession of unpublished price sensitive information of the Group have information of the Group have Specific employees who are likely to be in possession of unpublished price sensitive of non-compliance was noted by the been requested to comply with the provisions of the Model Code. No incident Company. MODEL CODE FOR SECURITIES TRANSACTIONS MODEL CODE FOR SECURITIES for Securities Transactions by Directors of Listed Issuers ( The Company has adopted the Model Code as set out in Appendix 10 to the Listing Rules. that they have complied with the Specific enquiry has been made of all the directors and the directors have confirmed Model Code throughout the year ended 31 December 2020. The Nomination Committee met once during the year ended 31 December 2020 to review the structure, size and the year ended 31 December 2020 to review the structure, size and The Nomination Committee met once during composition of the Board. at the Company and the attendance record of each Nomination Committee member The composition of the Nomination Committee are set out below: In accordance with the strategic needs of the Board, suitable candidates are identified for consideration by the by the candidates are identified for consideration the strategic needs of the Board, suitable In accordance with factors such as such candidates based on various The Nomination Committee would consider Nomination Committee. and length professional experience, skills, knowledge and educational background, ethnicity, the gender, age, cultural meritocracy and will be made to the Board based on the Board Diversity Policy. Recommendation of service set out in the on decide ultimately will Board The Board. the on diversity of benefits the for regard due having criteria, objective be re-elected shall appointed so directors New the Board. to contributions potential and their the candidate of merits Process of appointment of directors Process of appointment s degree in in degree s ’ s Remuneration ’ . ” s Report ’ Independent Auditor “ CORPORATE GOVERNANCE REPORT GOVERNANCE CORPORATE YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU identify, update and report the key risk areas which covered all aspects of corporate strategies, operation and finance identify, update and report the key risk areas which covered all aspects of corporate 28 to 29 of this Annual Report. to the Board quarterly. The possible risk exposure of the Group is set out on pages Company and considered it to be The Board has reviewed the risk management and internal control systems of the Year. effective and adequate and did not note any material deviation during the Reporting The Board has overall responsibility for evaluating and determining the nature and extent of the risks taken by the and extent of the risks taken by the The Board has overall responsibility for evaluating and determining the nature the reviews regularly Committee, Audit its through Board, The objectives. business strategic its achieve to Group the corporate governance practices effectiveness of the risk management and internal control systems and monitors to fulfill its responsibilities, the and compliance procedures on an ongoing basis. To assist the Audit Committee to Company, the of departments major from representatives comprising force, task a formed has management audit related services amounted to approximately RMB3,300,000 and in respect of non-audit services fees amounted audit related services amounted to approximately to RMB3,143,000. INTERNAL CONTROLS RISK MANAGEMENT AND Role of the Board the year ended 31 December 2020. of the Company about their reporting responsibilities on the consolidated The statement of the external auditor financial statements is set out in the the remuneration paid or payable to PricewaterhouseCoopers (Certified During the year ended 31 December 2020, Interest Entity Auditor), the external auditor of the Company in respect of Public Accountants and Registered Public The Board is responsible for presenting a balanced, clear and understandable assessment of annual and interim interim and annual of assessment understandable and clear balanced, a presenting for responsible is Board The and other disclosures required under the Listing Rules and other regulatory reports, price-sensitive announcements requirements. for preparing the consolidated financial statements of the Company for The directors acknowledge their responsibility private practice with an emphasis on corporate and commercial law. Mr Yu is responsible for advising the Board on law. Mr Yu is responsible for advising an emphasis on corporate and commercial private practice with 15 hours of relevant professional training. During 2020, Mr Yu has taken no less than governance matters. AUDIT ACCOUNTABILITY AND the Financial Statements and Auditor Responsibilities in Respect of Mr Yu Tat Fung has been the company secretary of the Company since 2004. He is the Group General Counsel of since 2004. He is the Group General been the company secretary of the Company Mr Yu Tat Fung has Limited Property and Yue Xiu REIT Asset Management company secretary of Yue Xiu, Yuexiu Yue Xiu, and also the a bachelor obtained Yu Mr 405)). Code: (Stock Trust Investment Estate Real Yuexiu of manager (the in England in Examination Final Solicitors the attained He 1981. in Kong Hong of University the from Sciences Social to the Bar of Hong Kong in 1986. He was also admitted as a solicitor of the Supreme Court 1983. He was admitted in engaged was he 1997, in Company the joining to Prior 1995. in Canada in Columbia British of Province the of COMPANY SECRETARY COMPANY

Annual Report 2020 62 63 Annual Report 2020 s approval ’ s approval ’ YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU s annual risk appetite policy ’ CORPORATE GOVERNANCE REPORT GOVERNANCE CORPORATE s annual risk appetite policy and measures s annual risk appetite ’ s risk management structural framework comprises the following components: framework comprises the following s risk management structural ’ the risk appetite. Arrange and coordinate relevant departments to provide solutions for abnormal indicator and the risk appetite. Arrange and coordinate make timely report to the management and provide recommendations to the management determine various risk appetite indicators and measurements and submit them for the management determine various risk appetite indicators encourage the management for improvement of full protection against material errors, losses, fraud or failure to meet its business objectives. of full protection against material errors, losses, fraud or failure to meet its business Internal control system and efficient operations, to ensure The internal control system of the Company is designed to facilitate effective to identify and manage risks and reliability of financial reporting and compliance with applicable laws and regulations, of internal control system consist of to safeguard the assets of the Company against loss or fraud. The main features information and communication five elements including, internal environment, risk assessment, monitoring activities, but not absolute assurance and internal monitoring. However, any internal control system can provide only reasonable – during the implementation process Gather comment and feedback from various departments and subsidiaries – Prepare and amend the risk appetite measures – plan regularly. With the support from various departments and subsidiaries, Initiate the risk management work – of collecting and summarising the implementation situation for monitoring risk appetite indicators, Responsible – to the Company Approve the risk limit indicators with reference – report to the Audit Committee Review the implementation of risk appetite and – strategy and of risk appetite with respect to business environment and development Assess the appropriateness – submit them for the Audit Committee Review the risk appetite policy and measures and The Group – Approve the Company – the implementation continuously from the management and monitor Consider the risk appetite report Risk management structural framework Risk management Audit and risk management department Management Audit Committee of the Board s s ’ meetings on each substantial issue. ’ issued by the Securities and Futures Commission in June 2012. issued by the Securities and Futures Commission ” s business performance and strategies. The Company also recognises the s business performance and strategies. The Company also recognises the ’ s internal control system is operated through segregation of duties (e.g. between toll collecting staff and is operated through segregation of duties s internal control system ’ meetings. Separate resolutions are proposed at shareholders ’ s audit and risk management department plays an important role in reviewing and monitoring the overall s audit and risk management department ’ s developments. Enquiries from investors are dealt with in an informative and timely manner. s developments. Enquiries from investors are dealt with in an informative and timely ’ Guidelines on Disclosure of Inside Information CORPORATE GOVERNANCE REPORT GOVERNANCE CORPORATE YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU The Company continues to enhance communications and relationships with its investors. Designated senior its investors. Designated senior The Company continues to enhance communications and relationships with to keep them abreast of the management maintains regular dialogue with institutional investors and analysts Company importance of transparency and timely disclosure of corporate information, which will enable shareholders and which will enable shareholders and importance of transparency and timely disclosure of corporate information, investors to make informed investment decisions. the shareholders and the Board. The general meetings of the Company provide a forum for communication between available to answer questions at the The Chairman of the Board as well as chairman of the board committees are shareholders “ SHAREHOLDERS AND INVESTORS COMMUNICATIONS WITH enhancing investor relations for is essential shareholders with communication effective that The Company considers and investor understanding of the Group Handling and dissemination of inside information Handling and dissemination inside information in accordance with the Listing Rules and the For the purpose of handling and disseminating 571 of the Laws of Hong Kong), the Group has taken various procedures Securities and Futures Ordinance (Cap to preserve confidentiality of inside information within the Group, and measures, including arousing the awareness dealing restrictions notification to the relevant directors and employees sending blackout period and securities the to closely regarding and basis need-to-know a on persons specified to information disseminating regularly, and performs specific internal audit projects. The department has unrestricted access to review all the Group to review all the has unrestricted access department internal audit projects. The and performs specific and identify the areas of concern. During the Year, the department business activities, departments and subsidiaries covering performance auditing, economic responsibility auditing and special has completed 12 internal audit projects projects auditing. of accounting records, so as to ensure financial information, whether applied in operation or for public disclosure public disclosure whether applied in operation or for so as to ensure financial information, of accounting records, purposes, are reliable. Internal audit The Group of the Group. The department directly reports to the Audit Committee internal compliance and governance system repairs and maintenance project management and so forth. Apart from periodic review by senior management management Apart from periodic review by senior project management and so forth. repairs and maintenance of department audit internal operation, major each to Company the by designated controllers financial including assessing the were responsible for inspecting and groups of each major toll road operation the Company or audit procedures control, the Company has adopted relevant operation. In financial accounting system performance of such and maintenance safekeeping of fixed assets, verification with approval procedures, proper including strict compliance The Company controls, system accounting financial audit, collection toll management, budget management, staff staff), supervision

Annual Report 2020 64 65 Annual Report 2020 s Bye-Laws, ’ s sustainable s sustainable ’ YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU s business developments and operations, financial financial and operations, business developments s ’ CORPORATE GOVERNANCE REPORT GOVERNANCE CORPORATE expectations and maintaining the Company ’ s constitutional documents. ’ s Bye-Laws are available on the websites of the Company and the Stock Exchange. During 2020, there s Bye-Laws are available on the websites of the Company and the Stock Exchange. ’ is no change in the Company represents approximately 50% to 60% of the profit attributable to shareholder. During the period, the payout ratio represents approximately 50% to 60% of the profit attributable to shareholder. from time to time to ensure its was 60.9%. The Board will review and monitor the implementation of said policy effectiveness and application. CONSTITUTIONAL DOCUMENTS The Company is based on the principle of balancing shareholders is based on the principle of balancing factors, such as the current business position, future operations development, with consideration of various of the Company, current and future macroeconomic environment and and income, and the financial position future major investment or acquisition plans, adjustments to industry development, capital needs and capital reserves, dividend of the Company for a year policies and continuity of past dividend policies. Generally speaking, the total shall not be held after the expiration of 3 months from the said date. Shareholders representing not less than one- than less not representing Shareholders date. said the from months 3 of expiration the after held be not shall resolutions for consideration may put forward than 100 shareholders, rights or not less the total voting twentieth of depositing at the registered office a written request for such resolutions at a general meeting of the Company by according to the Companies Act of Bermuda. a relatively stable and sustainable dividend policy. The dividend policy The Company is committed to maintaining the Company to convene a special general meeting. The requisition must state the objects of the meeting, and must the Company to convene a special general and deposited at the registered office of the Company for the attention of be signed by the shareholder(s) concerned may consist of several documents in like form, each signed by one or more the Company Secretary. The requisition not within 21 days from the date of the deposit of the requisition proceed shareholders concerned. If the directors do one-half than representing more them of any or shareholder(s) concerned, the meeting, general a to convene duly may themselves convene a general meeting, but any meeting so convened of the total voting rights of all of them, same day as the poll. all general meetings of the Company. Pursuant to the Company Shareholders are encouraged to attend capital paid-up the of such of one-tenth than less not requisition of deposit the of date the at holding shareholder(s) carries the right of voting at general meetings of the Company may, in of the Company as at the date of the deposit set out in the Companies Act of Bermuda, require the directors of accordance with the requirements and procedures information, corporate governance practices and other information are posted. governance practices and other information information, corporate administrative (other than on procedural and vote at the general meetings of the Company Resolutions put to the at shareholders the to explained are poll the of conduct the regarding Procedures poll. by taken are matters) procedures are shareholders regarding the voting each general meeting, and questions from commencement of on the Stock Exchange and the Company respectively results are posted on the websites of the answered. The poll To promote effective communication, the Company also maintains a website at www.yuexiutransportinfrastructure. communication, the Company also maintains To promote effective Company the on updates and information extensive where com, s ’ — 000 ’ 97,706 97,706 RMB Management “

entitlement to the final dividend. In order ’ s Hong Kong branch share registrar, Tricor Abacus Limited, no later than 4:30 p.m. s Hong Kong branch share registrar, Tricor Abacus Limited, no later than 4:30 p.m. ’ on pages 20 to 48 of this Annual Report. ” s Hong Kong branch share registrar, Tricor Abacus Limited at Level 54, Hopewell Centre, 183 Queen s Hong Kong branch share registrar, Tricor ’ eligibility to participate in the forthcoming annual general meeting of the Company to be held on 2 annual general meeting of the Company to be held on 2 eligibility to participate in the forthcoming ’ Paid interim dividend, nil to approximately RMB0.06 per share Proposed final dividend of HK$0.07 equivalent REPORT OF THE DIRECTORS REPORT YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU SHARE CAPITAL year are set out in note 24 to the Details of the movements in the issued share capital of the Company during the consolidated financial statements. During the year, charitable donations made by the Group amounted to approximately RMB3,970,000. During the year, charitable donations made by the Group amounted to approximately BUSINESS REVIEW in the section headed The business review of the Group for the year ended 31 December 2020 is set out Discussion And Analysis to qualify for the final dividend, all transfers of shares accompanied by the relevant share certificates must be lodged to qualify for the final dividend, all transfers of shares accompanied by the relevant for registration with the Company on Tuesday, 8 June 2021. DONATIONS June 2021, all transfers of shares accompanied by the relevant share certificates must be lodged for registration with for registration lodged must be certificates share the relevant by accompanied shares of transfers 2021, all June the Company p.m. on Thursday, 27 May 2021. Road East, Hong Kong, no later than 4:30 9 June 2021 to Friday, 11 June In addition, the register of members of the Company will be closed from Wednesday, the shareholders for the purpose of ascertaining 2021, both days inclusive, CLOSURE OF REGISTER OF MEMBERS CLOSURE OF REGISTER will be closed from Friday, 28 May 2021 to Wednesday, 2 June 2021, The register of members of the Company the ascertaining of purpose the For be registered. will shares of transfer no period which during inclusive, days both shareholders

RESULTS AND APPROPRIATIONS RESULTS AND consolidated income statement on page 78. The results for the year are set out in the the following dividends in respect of the year ended 31 December The Directors have declared and now recommend 2020: PRINCIPAL ACTIVITIES PRINCIPAL and bridges operation and management of expressways of the Group consist of investment in, The principal activities PRC. and other high-growth provinces in the in Guangdong Province The Directors submit their report together with the audited financial statements for the year ended 31 December 31 December financial statements for the year ended their report together with the audited The Directors submit 2020.

Annual Report 2020 66 67 Annual Report 2020 s Bye- ’ S SHARES ’ REPORT OF THE DIRECTORS REPORT YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU retire by rotation in accordance with Bye-Law 99 of the Company s shares during the year. ’ s principal subsidiaries as at 31 December 2020 are set out in note 39 to the consolidated in note 39 to the consolidated as at 31 December 2020 are set out s principal subsidiaries ’ SERVICE CONTRACTS ’ Profiles are set out on pages 51 to 53. ’ Li Feng, Mr He Baiqing and Ms Chen Jing DIRECTORS which is not determinable by the None of the Directors of the Company has a service contract with the Company compensation. employer within one year without payment of compensation, other than statutory MANAGEMENT CONTRACTS of business the part of substantial any whole or the of administration and management the concerning contracts No the Company were entered into or existed during the year. Mr for re-election. Laws at the forthcoming annual general meeting and, being eligible, offer themselves at the forthcoming annual The Board recommended the re-appointment of the directors standing for re-election general meeting of the Company. Mr Lau Hon Chuen Ambrose Mr Cheung Doi Shu The Directors ROTATION AND RE-ELECTION OF DIRECTORS Mr He Baiqing Ms Chen Jing 2020) Mr Xie Yanhui (appointed on 28 February Mr Fung Ka Pun DIRECTORS year and up to the date of this report were: The Directors who held office during the Mr Li Feng financial statements. DISTRIBUTABLE RESERVES reserves of the Company available for distribution amounted to As at 31 December 2020, the distributable RMB2,355,850,000 (2019: RMB2,480,781,000). During the year, the Company has not redeemed any of its shares. Neither the Company nor any of its subsidiaries Company the Neither shares. its any of redeemed Company has not the year, the During any of the Company has purchased or sold SUBSIDIARIES PRINCIPAL Details of the Company PURCHASE, SALE OR REDEMPTION OF THE COMPANY SALE OR REDEMPTION PURCHASE, Independent Non-executive directors Executive directors ), which is a ” YX IFC “ 2017 Framework Lease Lease Framework 2017 “ s business to which the the s business to which 2015 Framework Lease 2015 Framework Lease ’ “ s connected party had a material interest, whether directly or indirectly, subsisted at the the at subsisted indirectly, directly or whether interest, material a had party connected s ’ S BUSINESS MATERIAL INTERESTS IN TRANSACTIONS, ARRANGEMENTS IN TRANSACTIONS, MATERIAL INTERESTS ’ ’ ) with YX IFC to renew the term of the 2015 Framework Lease Agreement, and pursuant to which the ) with YX IFC to renew the term of the ) with Guangzhou Yue Xiu City Construction International Finance Center Co., Ltd. ( ) with Guangzhou Yue Xiu City Construction ” ” s subsidiaries, its holding companies or its fellow subsidiaries was a party and in which any Director of the of Director any which in and party a was subsidiaries fellow its or companies holding its subsidiaries, s ’ first month and the thirteenth month will be waived (except for one lease agreement which does not provide first month and the thirteenth month will be waived (except for one lease agreement for waiver of rents). is one year commencing on 1 January 2021); rent is RMB231 per square metre and RMB202 per square metre respectively; REPORT OF THE DIRECTORS REPORT YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU d) subject to the tenant having complied with the terms of the relevant lease agreements, the rents for each of the of the Company dated 31 Further details in relation to the lease agreements are set out in the announcement December 2020. b) the monthly rent is RMB262 per square metre (except for the two lease agreements under which the monthly c) the rental is payable on a quarterly basis; and On 31 December 2020, the Company entered into seven lease agreements with YX IFC in respect of the lease of into seven lease agreements with YX IFC in respect of the lease of On 31 December 2020, the Company entered IFC, Guangzhou, the PRC. Each lease agreement has the following certain lettable premises located in Guangzhou common terms: a) for one lease agreement the term of which the lease term is three years commencing on 1 January 2021 (except On 28 December 2017, the Company entered into another framework lease agreement ( agreement lease framework another into entered Company the 2017, December 28 On Agreement Lease Agreement are subject to the annual caps of RMB17,000,000 for each rent payable under the 2017 Framework 2019 and 2020 respectively. During the year, approximately RMB11,561,000 of the years ending 31 December 2018, to the specified lease agreements. has been paid by the group to YX IFC pursuant Agreement Limited, Holdings Xiu Yue Guangzhou of associate indirect an being its of virtue by Company the of person connected Guangzhou The of premises lettable certain of lease the of respect in Company, the of company holding ultimate PRC. The rent payable under the 2015 Framework Lease Agreement International Finance Center, Guangzhou, for the years ended 31 RMB15,000,000 and RMB15,100,000 subject to the annual caps of RMB13,200,000, are December 2015, 2016 and 2017 respectively. end of the year or at any time during the year. end of the year or at CONNECTED TRANSACTIONS Framework Lease Agreement into the framework lease agreement ( On 6 January 2015, the Company entered AND CONTRACTS THAT ARE SIGNIFICANT IN RELATION TO THE THE TO RELATION IN SIGNIFICANT ARE THAT CONTRACTS AND COMPANY in relation to the Group and contracts of significance No transactions, arrangements Company director the Company and DIRECTORS

Annual Report 2020 68 69 Annual Report 2020 2016 “ s Letter ’ Auditor “ Assurance Engagements Other “ ) to renew the 2018 Bank Deposits ” issued by the Hong Kong Institute of issued by the Hong Kong Institute of REPORT OF THE DIRECTORS REPORT ” YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU and with reference to Practice Note 740 ” 2021 Bank Deposits Agreement ) on normal commercial terms. On 29 October 2014, the Company terms. On 29 October 2014, the Company ) on normal commercial “ ” ) to increase the annual caps in relation to the bank deposits, and pursuant to the bank deposits, and pursuant ) to increase the annual caps in relation ” Chong Hing Bank “ ) to renew the term of the bank deposits agreement expiring on 31 December 2016, and expiring of the bank deposits agreement ) to renew the term ” 2018 Bank Deposits Agreement “ the pricing policies of the Group if the transactions involve the provision of goods or services by the Group; (iii) were the pricing policies of the Group if the transactions involve the provision of goods governing the transactions; and not entered into, in all material respects, in accordance with the relevant agreements the disclosed Continuing Connected (iv) have exceeded the maximum aggregate annual caps in respect of each of Transactions. on Continuing Connected Transactions under the Hong Kong Listing Rules the findings and conclusions in Certified Public Accountants. The auditor has issued an unqualified letter containing Rules and 14A.56 of the Listing with Rule in accordance transactions continuing connected of the aforesaid respect continuing connected transactions: nothing has come to their attention that causes them to believe that the disclosed respects, in accordance with (i) have not been approved by the Board of the Company; (ii) were not, in all material better; (c) in accordance with the relevant agreements governing them on terms that are fair and reasonable and in better; (c) in accordance with the relevant agreements governing them on terms the interests of the shareholders of the Company as a whole. continuing connected transactions The Company has engaged the auditor of the Company to report on the aforesaid in accordance with Hong Kong Standard on Assurance Engagements 3000 (Revised) Than Audits or Reviews of Historical Financial Information maintained by the Group with Chong Hing Bank for the year ended 31 December 2020 amounted to approximately maintained by the Group with Chong Hing also been disclosed as a related party transaction in note 36(c)(i) to the RMB1,211,843,000. This transaction had consolidated financial statements. directors of have been reviewed by independent non-executive The aforesaid continuing connected transactions were transactions connected aforesaid the that confirmed directors non-executive independent The Company. the on normal commercial terms or entered into (a) in the ordinary and usual course of business of the Group; (b) either with Chong Hing Bank on 23 November 2020 ( with Chong Hing Bank on 23 November aggregate maximum balance of the bank deposits maintained by the Group Agreement, and pursuant to which the would not exceed RMB1.5 billion for the years ending 31 December 2021, with Chong Hing Bank on any given day the aggregate Bank balances deposited by the Group with Chong Hing 2022 and 2023. As at 31 December 2020, The maximum daily aggregate amount of outstanding deposits Bank amounted to approximately RMB649,933,000. 2019. The Company entered into a new bank deposits master agreement with Chong Hing Bank on 2 May 2018 2018 2 May on Bank Hing Chong with agreement master deposits bank new a into entered Company The 2019. ( of the bank deposits maintained by the Group with Chong Hing Bank to which the aggregate maximum balance million, RMB1.2 billion and RMB1.5 billion for the years ending 31 on any given day would not exceed RMB800 The 2018 Bank Deposits Agreement has replaced the 2016 Bank December 2018, 2019 and 2020, respectively. The Company entered into a new bank deposits agreement effect from 30 May 2018. Deposits Agreement with shareholder of the Company, and therefore is a connected person of the Company. and therefore is a connected person shareholder of the Company, deposits agreement with Chong Hing Bank on 28 December 2016 ( The Company entered into another bank Agreement Bank Deposits balance of the bank deposits maintained by the Group with Chong Hing pursuant to which the aggregate maximum on any given day during the period from 1 January 2017 to 31 December Bank would not exceed RMB260 million In the ordinary and usual course of business, the Company and its subsidiaries place and maintain bank deposits with its subsidiaries place and maintain bank course of business, the Company and In the ordinary and usual ( Chong Hing Bank Limited balance Bank setting out that the aggregate maximum deposits agreement with Chong Hing entered into a bank million on any Hing Bank would not exceed HK$200 maintained by the Group with Chong of the bank deposits December 31 and 2015 December 31 ended years two and the 2014 31 December ended period the for day given is a controlling Xiu Enterprises (Holdings) Limited, which Hing Bank is a subsidiary of Yue 2016, respectively. Chong Bank Deposits Agreement Bank Deposits % % 0.031 0.003 0.012 0.030 0.001 of interest of interest Approximate Approximate

shares shares 52,000 195,720 500,000 172,900 4,841,200 Beneficial Beneficial interest in interest in

, pursuant to the Listing Rules. , pursuant to the Listing ” Personal Personal Personal Personal Personal interest interest Nature of Nature of

)), which are required to be recorded in the register maintained by )), which are required to be recorded in ” de minimis transaction “ SFO or “ ” s foreign exchange exposure in relation to the two principal repayments of (i) HK$200 in relation to the two principal s foreign exchange exposure ’ exempted transaction “ Name Mr Li Feng Mr Lau Hon Chuen Ambrose Name Mr He Baiqing Mr Lau Hon Chuen Ambrose Mr Cheung Doi Shu REPORT OF THE DIRECTORS REPORT YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU Yuexiu Property Company Limited

the Company under Section 352 of the SFO or notified to the Company and the Stock Exchange were as follows: the Company under Section 352 of the SFO The Company INTERESTS OF DIRECTORS short positions of the Directors and chief executive of the Company in the As at 31 December 2020, the interests and of the Company and its associated corporations (within the meaning of Part shares, underlying shares and debentures ( XV of the Securities and Futures Ordinance shareholder of the Company, it is a connected person of the Company. it is a connected person of the shareholder of the Company, BORROWINGS BANK LOANS AND OTHER of the Group as at 31 December 2020 is set out in note 26 to the Analysis of bank loans and other borrowings consolidated financial statements. and are regarded as Xiu to purchase exchange forward contracts with Yue Company entered into the two foreign On 20 June 2019, the therein, with respectively, with RMB on the terms stated of HK$200 million and HK$300 million, HKD in the amount the Group a view to managing the controlling March 2022, respectively. As Yue Xiu is 2021 and (ii) HK$300 million on 29 million on 29 March Other related party transactions disclosed in note 36(b)(i), (ii), (iii), (xii) and (xiii) to the consolidated financial financial (ii), (iii), (xii) and (xiii) to the consolidated transactions disclosed in note 36(b)(i), Other related party Year Reporting during the Group or continued by the into entered transactions connected constitute also statements Long positions in shares of Yuexiu Property Company Limited: Long positions in shares of the Company:

Annual Report 2020 70 71 Annual Report 2020

44.2 6.98 44.2 18.12 21.96 in shares of shareholding Approximate %

Number of shares held 739,526,200 739,526,200 303,159,087 367,500,000 116,934,000 REPORT OF THE DIRECTORS REPORT YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU Interest of controlled corporations Beneficial owner and interest of controlled corporations Beneficial owner Beneficial owner Investment manager Capacity in holding interest

2) & ) (Notes 1 ” Company Limited and Dragon Year Industries Limited. (Guangzhou Yue Xiu Holdings Limited) was deemed to be interested in the interest of Yue Xiu in the shares of the 州越秀集團股份有限公司 (Guangzhou Yue Xiu Holdings Limited) was deemed to be interested in the interest of Yue Xiu in the Company as described in note(2) below. shares (long position) through beneficial owner. By virtue of the SFO, Yue Xiu is also deemed to be interested in the balance of 739,517,547 Pacific Limited, Yue Xiu Finance its wholly-owned subsidiaries, namely, Housemaster Holdings Limited, Grace Lord Group Limited, Greenwood Yue Xiu “ ( Housemaster Holdings Limited (Note 2) Matthews International Capital LLC Management, Yue Xiu Enterprises (Holdings) Limited Grace Lord Group Limited (Note 2) Name 廣州越秀集團股份有限公司 (Guangzhou Yue Xiu Holdings Limited) (Note 1) (1) 廣州越秀集團股份有限公司 (Guangzhou Yue Xiu Holdings Limited). By virtue of the SFO, 廣 The entire issued shares of Yue Xiu is owned by (2) interested in an aggregate of 739,526,200 shares of the Company (long position) of which 8,653 shares were held by it as Yue Xiu was Notes:

As at 31 December 2020, the following persons had an interest or short position in the shares or underlying shares of shares underlying or shares the in position short or interest an had persons following the 2020, December 31 at As register required to be kept by the Company under Section 336 of the SFO: the Company which were recorded in the and children under 18 years of age) to acquire benefits by means of acquisition of shares in, or debentures of, the means of acquisition of shares in, or debentures 18 years of age) to acquire benefits by and children under body corporate. Company or any other OF SHAREHOLDERS UNDER THE DISCLOSEABLE INTERESTS ORDINANCE SECURITIES AND FUTURES or its associated corporations (within the meaning of Part XV of the SFO), which are required to be recorded in the in recorded be to required are which SFO), the of XV Part of meaning the (within corporations associated its or and the Stock of the SFO or notified to the Company by the Company pursuant to Section 352 register maintained by Directors of Listed Companies. the Model Code for Securities Transactions Exchange pursuant to or subsidiaries, its company, holding its Company, was the year the during time no at herein, disclosed as Save their spouse the Directors of the Company (including a party to any arrangement to enable its fellow subsidiaries Save as disclosed herein, as at 31 December 2020, none of the Directors or chief executive of the Company had or Directors or chief 31 December 2020, none of the herein, as at Save as disclosed of the Company debentures or shares the shares, underlying any interest or short position in was deemed to have Long positions in the shares of the Company s ’ ), Certified Public ), Certified Public ” PwC “ s securities as required under the s securities as required ’ s members or creditors. The Board has ’ s Bye-Laws and there are no restrictions against are no restrictions against s Bye-Laws and there ’ s five largest customers and suppliers are less than 30% of the Group s five largest customers and suppliers are ’ s major customers and suppliers are made since the aggregate percentages of s major customers and suppliers are made ’ REPORT OF THE DIRECTORS REPORT YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU Li Feng Hong Kong, 9 March 2021 On behalf of the Board the AGM. letter from PwC confirming that there are no circumstances connected The Company has received a confirmation to the attention of the Company with their retirement that need to be brought between PwC and the Company, and there are no matters in respect of the confirmed that there is no disagreement securities of the Company. proposed change of auditor that need to be brought to the attention of holders of Accountants and Registered Public Interest Entity Auditor. Accountants and Registered Public Interest for more than 20 years. The Board considers the rotation of auditor after PwC has been the auditor of the Company the Board has resolved, with the On 9 March 2021, a good governance practice. of time is an appropriate period of the Company, to propose the appointment of Ernst & Young as the new recommendation of the audit committee of PwC, subject to the approval of shareholders of the Company at auditor of the Company following the retirement sales and purchases attributable to the Group and previous years. total sales and purchases during the current AUDITOR have been audited by PricewaterhouseCoopers ( The consolidated financial statements knowledge of the Directors, there was a sufficiency of public float of the Company there was a sufficiency of public knowledge of the Directors, Listing Rules. SUPPLIERS MAJOR CUSTOMERS AND No disclosure with regard to the Group There are no provisions for pre-emptive rights under the Company There are no provisions laws of Bermuda. such rights under the PUBLIC FLOAT and within the Company as at the date of this report that is publicly available to the Based on the information PRE-EMPTIVE RIGHTS PRE-EMPTIVE Chairman

Annual Report 2020 72 73 Annual Report 2020 the “ S REPORT ’ ) and its subsidiaries ) issued by the Hong ” ” ) issued by the HKICPA. ) issued by the HKICPA. ” HKFRSs “ Company “ HKSAs “ s Responsibilities for the Audit of the ’ YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU s Code of Ethics for Professional Accountants ( Accountants Professional for Ethics Code of s ’ ) and have been properly prepared in compliance with the compliance with properly prepared in been and have ) ” INDEPENDENT AUDITOR INDEPENDENT HKICPA “ ) set out on pages 78 to 175, which comprise: ” ), and we have fulfilled our other ethical responsibilities in accordance with the Code. Group ” “ We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. We believe that the audit evidence we have obtained is sufficient and appropriate Independence HKICPA the with accordance in the Group of are independent We Code BASIS FOR OPINION ( We conducted our audit in accordance with Hong Kong Standards on Auditing Our responsibilities under those standards are further described in the Auditor Consolidated Financial Statements section of our report. In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position In our opinion, the consolidated financial and of its consolidated financial performance and its consolidated cash flows of the Group as at 31 December 2020, Hong Kong Financial Reporting Standards ( for the year then ended in accordance with ( Accountants Public of Certified Institute Kong disclosure requirements of the Hong Kong Companies Ordinance. ‧ for the year then ended; the consolidated statement of changes in equity ‧ year then ended; and the consolidated statement of cash flows for the ‧ which include a summary of significant accounting policies. the notes to the consolidated financial statements, Our opinion ‧ 2020; the consolidated balance sheet as at 31 December ‧ ended; the consolidated income statement for the year then ‧ for the year then ended; the consolidated statement of comprehensive income OPINION What we have audited Yuexiu Transport Infrastructure Limited (the The consolidated financial statements of (the TO THE SHAREHOLDERS OF YUEXIU TRANSPORT INFRASTRUCTURE LIMITED OF YUEXIU TRANSPORT INFRASTRUCTURE TO THE SHAREHOLDERS with limited liability) (incorporated in Bermuda

’ s s s ’ ’ s estimation of projected total traffic s estimation of projected total traffic ’ management in estimating the projected total total management in estimating the projected rights traffic volume of the intangible operating such of reasonableness the challenging and estimation; consultant has been used and referenced by management, performing evaluation of the independent external traffic consultants qualifications, competence, capabilities and objectivity; of impairment; assessments were prepared; appropriateness of the key assumptions based on our knowledge of the industry and using our in- house valuation experts; future cash flow forecasts and impairment future cash flow forecasts and impairment – – by taken procedures the Understanding – Where traffic studies prepared by traffic – indicators identified management how Assessing – – Challenging the methodologies used, the by considering the degree of estimation uncertainty uncertainty by considering the degree of estimation such as and level of other inherent risk factors susceptibility to complexity, subjectivity, changes and relation in fraud. Our procedures bias or management to management volume and impairment assessments included: – Evaluating the process by which the management How our audit addressed the Key Audit Matter How our audit addressed the Key Audit management the of understanding an obtained We projected of the and assessment process internal control and total traffic volume and impairment assessments of material misstatement risk assessed the inherent IOR IOR “ S REPORT ’ ). ” goodwill to write off their costs on a unit-of-usage basis based basis based to write off their costs on a unit-of-usage period over the on the traffic volume for a particular the operating projected total traffic volume throughout (the period of the intangible operating rights amortisation calculations million (note 13), goodwill of RMB633 million (note 14) million (note 13), goodwill of RMB633 million million (note and deferred tax liabilities of RMB2,570 obtaining those 28) relating to business acquisitions in intangible operating rights in previous years. calculated is rights operating intangible of Amortisation impairment assessment of intangible operating rights rights impairment assessment of intangible operating and goodwill of RMB31,713The Group has intangible operating rights Key Audit Matter rights and Amortisation of intangible operating Refer to notesfinancial 4(a), 4(b), statements. 13 and 14 in the consolidated INDEPENDENT AUDITOR INDEPENDENT YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU ‧ of intangible operating rights and operating rights and impairment assessment Amortisation of intangible Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of in our audit of judgement, were of most significance those matters that, in our professional Key audit matters are of our audit matters were addressed in the context statements of the current period. These the consolidated financial do not provide a forming our opinion thereon, and we financial statements as a whole, and in of the consolidated these matters. separate opinion on follows: identified in our audit is summarised as The key audit matter KEY AUDIT MATTERS KEY AUDIT

Annual Report 2020 74 75 Annual Report 2020 s report ’ S REPORT ’ s impairment impairment s ’ s IOR amortisation calculations, the the s IOR amortisation calculations, ’ YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU INDEPENDENT AUDITOR INDEPENDENT the growth in revenue generated from future future the growth in revenue generated from traffic. such as historical financial information, approved information, approved such as historical financial the reasonableness of budgets and reconsidering these budgets; management disposal value in use and fair value less costs of management the in calculations assessments; and in key reasonably possible downside changes discount rate and including assumptions adopted We found the assumptions made by management in made by management in the assumptions found We calculations, amortisation IOR aforesaid the to relation disposal of costs less value fair and use in value available on based supportable be to calculations evidence. How our audit addressed the Key Audit Matter How our audit addressed – input data to supporting evidence, Checking – accuracy of the Checking the mathematical – Considering the results of sensitivity analysis on (CONTINUED) assumptions used in the projected total traffic volume volume traffic total projected the in used assumptions including estimation and impairment assessments capital estimated traffic volume, revenue growth, expenditure and discount rates. order to calculate the present value. operating We focused on the amortisation of intangible intangible of assessment impairment and rights significant to due goodwill and rights operating the key management judgements required to determine preparing impairment assessments based on value in in on value based assessments impairment preparing calculation. The use and fair value less costs of disposal the future calculations require the Group to estimate cash-generating cash flows expected to arise from the operating intangible and goodwill the which to units in the use of suitable discount rates rights belong and professional traffic studies prepared by traffic consultantsprofessional traffic studies and judgement management significant require which estimates. amount recoverable the assessed has Management rights by of the goodwill and intangible operating Key Audit Matter traffic volume estimation takes This projected total the information, operating historical the account into of the toll road and its adjacent expected development where applicable, independent traffic network and we are required to report that fact. We have nothing to report in this regard. form of assurance conclusion thereon. responsibility is to read the other In connection with our audit of the consolidated financial statements, our inconsistent with the consolidated information and, in doing so, consider whether the other information is materially to be materially misstated. financial statements or our knowledge obtained in the audit or otherwise appears of this other information,If, based on the work we have performed, we conclude that there is a material misstatement The directors of the Company are responsible for the other information. The other information comprises all of the The directors of the Company are responsible for the other information. The other statements and our auditor information included in the annual report other than the consolidated financial thereon. and we do not express any Our opinion on the consolidated financial statements does not cover the other information OTHER INFORMATION KEY AUDIT MATTERS KEY AUDIT s ability to s ability to ’ s report that includes our ’ s financial reporting process. ’ S REPORT ’ S RESPONSIBILITIES FOR THE AUDIT OF THE FOR THE AUDIT OF THE S RESPONSIBILITIES ’ s internal control. ’ appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the appropriate in the circumstances, but not for the purpose of expressing an opinion Group related disclosures made by the directors. fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is evidence audit and obtain risks, to those responsive procedures audit and perform design or error, fraud a material misstatement sufficient and appropriate to provide a basis for our opinion. The risk of not detecting forgery, collusion, involve may fraud as error, from resulting one for than higher is fraud from resulting intentional omissions, misrepresentations, or the override of internal control. INDEPENDENT AUDITOR INDEPENDENT YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU ‧ to the audit in order to design audit procedures that are Obtain an understanding of internal control relevant ‧ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and ‧ Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to conducted in accordance with HKSAs will always detect a material misstatement when it exists. Misstatements can always detect a material misstatement when it exists. Misstatements can conducted in accordance with HKSAs will be reasonably could they aggregate, the in or individually if, material considered are and error or fraud from arise of users taken on the basis of these consolidated financial statements. expected to influence the economic decisions HKSAs, we exercise professional judgement and maintain professional As part of an audit in accordance with scepticism throughout the audit. We also: Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole a whole as statements financial the consolidated whether about assurance obtain reasonable are to Our objectives due to fraud or error, and to issue an auditor are free from material misstatement, whether you, as a body, in accordance with Section 90 of the Companies Act 1981 opinion. We report our opinion solely to other person any to accept liability responsibility towards or assume not do purpose. We other no and for Bermuda of that an audit not a guarantee of assurance, but is high level is a Reasonable assurance this report. contents of for the alternative but to do so. for overseeing the Group Those charged with governance are responsible AUDITOR STATEMENTS CONSOLIDATED FINANCIAL preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or from material misstatement, whether financial statements that are free preparation of consolidated error. the directors are responsible for assessing the Group In preparing the consolidated financial statements, concern the going using to going concern and related matters applicable, as disclosing, concern, a going as continue intend to liquidate the Group or to cease operations, or have no realisticbasis of accounting unless the directors either WITH GOVERNANCE FOR THE CONSOLIDATED FINANCIAL FINANCIAL CONSOLIDATED THE FOR GOVERNANCE WITH STATEMENTS that give of the consolidated financial statements Company are responsible for the preparation The directors of the of the Hong HKICPA and the disclosure requirements in accordance with HKFRSs issued by the a true and fair view the enable to necessary is determine directors the as control internal such for and Ordinance, Companies Kong RESPONSIBILITIES OF DIRECTORS AND THOSE CHARGED AND THOSE CHARGED OF DIRECTORS RESPONSIBILITIES

Annual Report 2020 76 77 Annual Report 2020 S REPORT ’ s report. However, future events or events or future However, report. s ’ s report to the related disclosures in the disclosures in the s report to the related (CONTINUED) ’ s report is Yeung, Sheung Yuen. ’ YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU INDEPENDENT AUDITOR INDEPENDENT use of the going concern basis of accounting and, based based and, accounting of basis concern going the of use ’ s report unless law or regulation precludes public disclosure about ’ s ability to continue as a going concern. If we conclude that a material material a that conclude we If concern. going a as continue to ability s ’ S RESPONSIBILITIES FOR THE AUDIT OF THE AUDIT OF THE FOR THE S RESPONSIBILITIES ’ activities within the Group to express an opinion on the consolidated financial statements. We are responsible activities within the Group to express an of the group audit. We remain solely responsible for our audit for the direction, supervision and performance opinion. consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions to modify our opinion. Our statements or, if such disclosures are inadequate, consolidated financial our auditor of date the up to obtained audit evidence on the are based to continue as a going concern. conditions may cause the Group to cease financial statements represent the underlying transactions and events disclosures, and whether the consolidated in a manner that achieves fair presentation. on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may exists related to events or conditions obtained, whether a material uncertainty on the audit evidence Group the on doubt significant cast to draw attention in our auditor exists, we are required uncertainty Hong Kong, 9 March 2021 PricewaterhouseCoopers Certified Public Accountants the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our rare circumstances, we determine that a matter should not the matter or when, in extremely to outweigh the public interest report because the adverse consequences of doing so would reasonably be expected benefits of such communication. The engagement partner on the audit resulting in this independent auditor reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or independence, and where applicable, actions taken to eliminate threats or reasonably be thought to bear on our safeguards applied. charged with governance, we determine those matters that were of most From the matters communicated with those audit key the therefore are and period current the of statements financial consolidated the of audit the in significance matters. We describe these matters in our auditor We communicate with those charged with governance regarding, among other matters, the planned scope and with governance regarding, among other matters, the planned scope and We communicate with those charged findings, including any significant deficiencies in internal control that we timing of the audit and significant audit identify during our audit. ethical complied with relevant with a statement that we have charged with governance We also provide those to communicate with them all relationships and other matters that may requirements regarding independence, and ‧ the entities or business sufficient appropriate audit evidence regarding the financial information of Obtain ‧ consolidated financial statements, including the Evaluate the overall presentation, structure and content of the CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED ‧ directors the of appropriateness the on Conclude AUDITOR 000 ’ RMB 2019 40,800 88,739 0.6799 298,276 179,374 262,484 457,453 (298,276) (271,819) (411,217) (305,402) RMB 3,023,221 1,919,639 1,900,445 1,595,043 1,137,590 1,595,043 (1,011,137)

000 ’ RMB 2020 25,145 26,359 56,533 67,822 0.0959 307,235 682,421 404,336 160,491 243,845 404,336 (307,235) (246,942) (278,085) (805,757) RMB 2,919,838 1,337,464 (1,360,577)

5 6 9 9 33 33 18 19 10 11 7,8 7,8 Note

Other income, gains and losses - net Other income, gains expenses General and administrative Revenue Cost of services under service concession upgrade services Construction income service concession upgrade services Construction costs under Share of result of a joint venture Share of results of associates Profit before income tax Income tax expense Operating profit Finance income Finance costs Earnings per share for profit attributable to the shareholders Earnings per share for profit attributable of the Company Basic and diluted earnings per share Profit for the year Attributable to: Shareholders of the Company Non-controlling interests CONSOLIDATED INCOME STATEMENT CONSOLIDATED YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU

FOR THE YEAR ENDED 31 DECEMBER 2020 FOR THE YEAR ENDED The notes on pages 85 to 175 are an integral part of these consolidated financial statements. The notes on pages 85 to 175 are an integral part of these consolidated financial

Annual Report 2020 78 79 Annual Report 2020 000 ’ (164) 2019 (2,377) (18,000) (20,541) 457,453 RMB 1,117,049 1,574,502 1,595,043 1,574,502

— 000 592 ’ 2020 6,637 7,229 167,720 243,845 411,565 404,336 411,565 RMB

YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME OF COMPREHENSIVE STATEMENT CONSOLIDATED Total comprehensive income for the year Total comprehensive income for the to: Total comprehensive income attributable Shareholders of the Company Non-controlling interests Currency translation differences of a subsidiary Release of currency translation differences upon liquidation Cash flow hedges – movement in hedging reserve year Other comprehensive income/(loss) for the Profit for the year income Other comprehensive Items that may be reclassified to profit or loss The notes on pages 85 to 175 are an integral part of these consolidated financial statements. The notes on pages 85 to 175 are an integral part of these consolidated financial

FOR THE YEAR ENDED 31 DECEMBER 2020 FOR THE YEAR ENDED 000 ’ 2019 1,697 52,321 39,923 10,528 22,916 27,729 632,619 471,055 175,028 160,255 147,322 RMB 1,399,621 1,435,062 1,798,074 3,057,095 32,369,121 34,999,801 36,797,875 10,424,333 10,571,655 13,628,750 31 December

— — — 000 ’ 2020 53,099 37,144 30,021 632,619 487,605 204,361 157,678 147,322 RMB 1,516,004 1,878,043 1,536,113 3,228,854 31,712,956 34,489,557 36,367,600 10,277,569 10,424,891 13,653,745 31 December

13 14 16 18 19 20 21 22 22 36 23 24 25 Note 15(a) 15(b)

ASSETS Trade receivables Investments in associates Derivative financial instruments Other non-current receivables Current assets Goodwill Property, plant and equipment Investment properties Right-of-use assets Investment in a joint venture Non-current assets Intangible operating rights Reserves Non-controlling interests Total equity Total assets EQUITY Equity attributable to the shareholders of the Company Share capital Other receivables, deposits and prepayments Amount due from an associate Cash and cash equivalents CONSOLIDATED BALANCE SHEET BALANCE CONSOLIDATED YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU

AS AT 31 DECEMBER 2020 AS AT 31 DECEMBER

Annual Report 2020 80 81 Annual Report 2020 — — — 000 331 350 ’ 2019 1,611 2,490 22,309 10,488 77,622 996,522 351,213 RMB 1,305,148 1,115,038 1,907,554 3,244,298 2,535,037 14,134,151 20,634,088 23,169,125 36,797,875 31 December

— — 000 153 ’ 2020 1,611 22,309 10,511 10,677 81,855 19,510 13,365 977,300 332,860 RMB 2,492,974 3,300,573 1,909,152 1,219,362 4,232,930 12,321,643 18,480,925 22,713,855 36,367,600 31 December

26 30 36 36 36 31 27 20 26 29 30 27 28 20 YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU Note 15(b) 15(b)

CONSOLIDATED BALANCE SHEET BALANCE CONSOLIDATED He Baiqing Director Derivative financial instruments Notes payable Corporate bonds Contract liabilities and deferred revenue Deferred income tax liabilities Lease liabilities LIABILITIES Non-current liabilities Borrowings Total equity and liabilities Lease liabilities Derivative financial instruments Current income tax liabilities Total liabilities Amount due to a non-controlling interest of a subsidiary Amounts due to holding companies Amount due to a joint venture Trade and other payables and accrued charges Contract liabilities and deferred revenue Current liabilities Borrowings Corporate bonds

AS AT 31 DECEMBER 2020 AS AT 31 DECEMBER The notes on pages 85 to 175 are an integral part of these consolidated financial statements. The notes on pages 85 to 175 are an integral part of these consolidated financial Li Feng The financial statements on pages 78 to 175 were approved by the Board of Directors on 9 March 2021 and were and 2021 March 9 on Directors of Board the by approved were 175 to 78 pages on statements financial The signed on its behalf Director — — 86 000 ’ 2019 (4,729) (1,066) (4,420) 71,956 28,167 95,916 25,420 52,500 (90,000) (28,119) (11,807) 328,616 996,430 (383,092) (120,740) (957,094) (850,000) (617,265) (351,586) (302,019) RMB 2,429,237 2,142,061 2,393,222 5,453,000 2,413,653 1,435,062 (5,512,808) (5,841,584) (1,833,061)

— — — — — 000 ’ (872) 2020 1,151 7,290 (1,968) (4,586) 39,983 23,627 27,510 81,814 (14,717) (75,960) (72,086) (11,472) 771,000 (238,526) (500,000) (314,484) (753,407) (217,578) (247,410) RMB 2,320,758 2,103,180 1,435,062 1,493,828 1,516,004 (2,389,665) (1,782,840)

35 29 23 Note 32(a) 10(b) 32(b)

Cash flows from operating activities Cash flows from operating Proceeds from bank borrowings Proceeds from issuance of Notes Dividend received from a joint venture Interest received Net cash used in investing activities Cash flows from financing activities upgrade services upgrade Investment in an associate Proceeds from compensation arrangements Proceeds from disposal of property, plant and equipment Purchase of property, plant and equipment Dividends received from associates Net cash generated from operating activities Net cash generated Cash flows from investing activities acquired Payments for acquisition of subsidiaries, net of cash Payments of construction costs under service concession Cash generated from operations tax paid PRC enterprise income tax and withholding tax Refund of PRC enterprise income rate changes on cash and cash equivalents Effects of exchange Cash and cash equivalents at 31 December lease liabilities (including interest) Payment for Net cash (used in)/generated from financing activities Net increase/(decrease) in cash and cash equivalents equivalents at 1 January Cash and cash corporate bonds Repayment of loan from a fellow subsidiary Repayment of loans from non-controlling interests of subsidiaries Repayment of to the shareholders of the Company Dividends paid to non-controlling interests Dividends paid Interest paid Proceeds from loan from a joint venture Repayment of bank borrowings other borrowing Repayment of facility fees Payment of bank CONSOLIDATED STATEMENT OF CASH FLOWS OF CASH STATEMENT CONSOLIDATED YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU

FOR THE YEAR ENDED 31 DECEMBER 2020 FOR THE YEAR ENDED The notes on pages 85 to 175 are an integral part of these consolidated financial statements. The notes on pages 85 to 175 are an integral part of these consolidated financial

Annual Report 2020 82 83 Annual Report 2020 000 592 ’ Total 7,229 6,637 (72,086) 411,565 404,336 (314,484) (386,570) RMB 13,653,745 13,628,750

— — — — 000 ’ Non- (72,086) (72,086) 243,845 243,845 interests RMB 3,228,854 3,057,095 controlling

— 000 592 ’ YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 7,229 6,637 167,720 160,491 (314,484) (314,484) Reserves RMB 10,277,569 10,424,333

— — — — — — — — 000 ’ of the Company 147,322 147,322 RMB Share capital Attributable to shareholders Attributable to shareholders

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY OF CHANGES STATEMENT CONSOLIDATED Total transactions with owners Balance at 31 December 2020 Total comprehensive income Transactions with owners Dividends to the shareholders of the Company Dividends to non-controlling interests Currency translation differences Cash flow hedges – movement in reserve hedging Total other comprehensive income Balance at 1 January 2020 Balance at 1 January Comprehensive income Profit for the year Other comprehensive income

FOR THE YEAR ENDED 31 DECEMBER 2020 FOR THE YEAR ENDED 000 ’ (164) Total (2,377) (18,000) (20,541) 615,520 (617,265) (351,586) (353,331) RMB 1,574,502 1,595,043 13,628,750 12,407,579

— — — — — 000 ’ Non- interests 457,453 615,520 263,934 457,453 (351,586) RMB 3,057,095 2,335,708 controlling

— — 000 ’ (164) (2,377) (18,000) (20,541) Reserves (617,265) (617,265) RMB 1,117,049 9,924,549 1,137,590 10,424,333

— — — — — — — — — — 000 ’ of the Company 147,322 147,322 RMB Attributable to shareholders Attributable to shareholders Share capital

Balance at 31 December 2019 Acquisition of subsidiaries (note 35) Dividends to the shareholders of the Company Dividends to non-controlling interests Total transactions with owners a subsidiary a Total other comprehensive income Total comprehensive income Transactions with owners Currency translation differences Cash flow hedges – movement in reserve hedging Release of currency translation differences upon liquidation of Balance at 1 January 2019 Balance at 1 January Comprehensive income Profit for the year Other comprehensive income CONSOLIDATED STATEMENT OF CHANGES IN EQUITY OF CHANGES STATEMENT CONSOLIDATED YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU The notes on pages 85 to 175 are an integral part of these consolidated financial statements. The notes on pages 85 to 175 are an integral part of these consolidated financial

FOR THE YEAR ENDED 31 DECEMBER 2019 FOR THE YEAR ENDED

Annual Report 2020 84 85 Annual Report 2020 ). ” ) (Cap. ) ” s Republic ’ HKCO “ Stock Exchange “ YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU ), unless otherwise stated. These financial ), unless otherwise stated. These financial ” ) and its subsidiaries (collectively referred to as (collectively referred to as ) and its subsidiaries RMB ” “ ) issued by the Hong Kong Institute of Certified Public) issued by the Hong Kong Institute of Certified ” s current liabilities exceeded its current assets by by assets current its exceeded liabilities s current ’ HKFRSs Company “ “ s current liabilities primarily comprise of current borrowings, s current liabilities primarily comprise of current borrowings, ’ ). ” PRC “ ) are principally engaged in investment in and development, operation and management of of management and operation development, and in investment in engaged principally are ) ” are confident that the Group will be able to meet its liabilities as they fall due in the next twelve in the next twelve are confident that the Group will be able to meet its liabilities as they fall due available, and months, taking into account the forecast cash flows including the banking facilities issued in January the Medium Term Notes of RMB1 billion and Corporate Bonds of RMB1 billion on a going concern 2021. Accordingly, these consolidated financial statements have been prepared basis. basis, except for The consolidated financial statements have been prepared on a historical cost investment and instruments) financial derivative (including liabilities and assets financial certain properties which are measured at fair value. The consolidated financial statements of the Group have been prepared in accordance with Hong the Group have been prepared in accordance with Hong The consolidated financial statements of Kong Financial Reporting Standards ( ( Ordinance Companies Kong Hong the of requirements disclosure and Accountants 622). Group the 2020, December 31 at As RMB2,354,887,000. The Group RMB1,909,152,000 corporate bonds and other payable and accrued charges of RMB977,300,000, of the Company and RMB1,146,130,000 respectively. Notwithstanding the above, the directors (iii) Historical cost convention (ii) Going concern consideration (i) Compliance with HKFRSs and HKCO NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES Group “ (a) Basis of preparation This note provides a list of the significant accounting policies applied in the preparation of these consolidated This note provides a list of the significant been consistently applied to all the years presented, unless otherwise financial statements. These policies have stated. office is Victoria Place, 5th Floor, 31 Victoria Street, Hamilton HM 10, Bermuda and its principal place of place of HM 10, Bermuda and its principal 5th Floor, 31 Victoria Street, Hamilton office is Victoria Place, Road, Wanchai, Hong Kong. is 17A, Yue Xiu Building, 160 Lockhart business in Hong Kong of The Stock Exchange of Hong Kong Limited (the The Company is listed on the Main Board in Renminbi ( These financial statements are presented by the Board of Directors on 9 March 2021. statements have been approved for issue Yuexiu Transport Infrastructure Limited (the Yuexiu Transport Infrastructure the high-growth provinces in the People mainly in Guangdong, Hubei and other expressways and bridges of China (the registered the laws of Bermuda. The address of its exempted Company incorporated under The Company is an 2 ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT 1 GENERAL INFORMATION Effective for 1 January 2022 1 January 2023 1 January 2022 1 January 2022 1 January 2022 1 January 2023 (CONTINUED) To be announced accounting periods beginning on or after

Definition of material Definition of a business Hedge accounting (amendments) Reporting Revised Conceptual Framework for Financial Annual improvements 2018-2020 cycle Classification of Liabilities as Current or Non-current Property, Plant and Equipment: Proceeds before intended use Onerous Contracts – Cost of Fulfilling a Contract Reference to the Conceptual Framework Insurance contracts Sale or contribution of assets between an its associate or joint venture investor and

(Continued) 28 (Amendments) Amendments to annual improvements project HKAS 1 (Amendments) HKAS 16 (Amendments) HKAS 37 (Amendments) HKFRS 3 (Amendments) HKFRS 17 HKFRS 10 and HKAS New standards, amendments, improvement and interpretation New standards, amendments, improvement Management considers that the adoption of the above mentioned new standards, amendments and Management considers that the adoption of the above mentioned new standards, impact on the interpretation at their respective effective dates are not expected to have a material Group in the current or future reporting periods. HKFRS 7 (Amendments) Conceptual Framework for Financial Reporting 2018 the financial effective for interpretation and improvement standards, amendments, The above new a material impact on the Group. year beginning 1 January 2020 do not have improvement and interpretation have been issued but The following new standards, amendments, 1 January 2020 and have not been early adopted: are not effective for the financial year beginning The Group has applied the following new standards, amendments, improvement and interpretation the following new standards, amendments, The Group has applied 1 January 2020: their annual reporting period commencing for the first time for (Amendments) HKAS 1 and HKAS 8 HKFRS 3 (Amendments) HKFRS 9, HKAS 39 and (iv) interpretation amendments to standards and New standards, (a) Basis of preparation NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 2 POLICIES SIGNIFICANT ACCOUNTING SUMMARY OF

Annual Report 2020 86 87 Annual Report 2020 (CONTINUED) YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU s share of the post-acquisition profits or losses of the investee in ’ s share of movements in other comprehensive income of the investee ’ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES Interests in joint ventures are accounted for using the equity method (note 2(b)(iv)), after initially after initially Interests in joint ventures are accounted for using the equity method (note 2(b)(iv)), being recognised at cost in the consolidated balance sheet. cost and adjusted Under the equity method of accounting, the investments are initially recognised at thereafter to recognise the Group profit or loss, and the Group and joint ventures in other comprehensive income. Dividends received or receivable from associates are recognised as a reduction in the carrying amount of the investment. rights. Investments in associates are accounted for using the equity method of accounting (note 2(b) (note method of accounting equity the using for accounted are associates in Investments rights. (iv)), after initially being recognised at cost. in joint arrangements are classified as either joint Under HKFRS 11 Joint Arrangements, investments depends on the contractual rights and obligations operations or joint ventures. The classification only has joint of each investor, rather than the legal structure of the joint arrangement. The Group ventures. Joint ventures Intercompany transactions, balances and unrealised gains on transactions between the Group are unrealised gains on transactions between the Group are Intercompany transactions, balances and unless the transaction provides evidence of an eliminated. Unrealised losses are also eliminated policies of subsidiaries have been changed where impairment of the transferred asset. Accounting policies adopted by the Group. necessary to ensure consistency with the and equity of subsidiaries are shown separately in the Non-controlling interests in the results statement of comprehensive income, consolidated consolidated income statement, consolidated of changes in equity respectively. balance sheet and consolidated statement joint or control not but influence significant has Group the which over entities all are Associates the Group holds between 20% and 50% of the voting control. This is generally the case where Subsidiaries are all entities (including structured entities) over which the Group has control. The which the Group has control. The (including structured entities) over Subsidiaries are all entities its from returns variable to, rights has or to, exposed is Group the when entity an controls Group returns through its power to direct entity and has the ability to affect those involvement with the from the date on which control is entity. Subsidiaries are fully consolidated the activities of the that control ceases. They are deconsolidated from the date transferred to the Group. (iv) Equity accounting (iii) Joint arrangements (ii) Associates (i) Subsidiaries (b) and equity accounting Principles of consolidation 2 POLICIES SIGNIFICANT ACCOUNTING SUMMARY OF (CONTINUED) (Continued) s interest in these entities. Unrealised losses are also losses are also s interest in these entities. Unrealised ’ (Continued) s share of losses in an equity-accounted investment equals or exceeds its interest equity-accounted investment equals s share of losses in an ’ equity as specified/permitted by applicable HKFRSs. significant or control joint but reduced is associate an or venture a joint in interest ownership the If in other influence is retained, only a proportionate share of the amounts previously recognised comprehensive income is reclassified to profit or loss where appropriate. non-controlling interests and any consideration paid or received is recognised in a separate reserve non-controlling interests and any consideration Group. within equity attributable to owners of the of loss a of because investment an for account equity or consolidate to ceases Group the When any retained interest in the entity is remeasured to its control, joint control or significant influence, recognised in profit or loss. This fair value becomes fair value with the change in carrying amount retained interest the of subsequently accounting for purposes for the amount carrying initial the recognised in as an associate, joint venture or financial asset. In addition, any amounts previously Group had directly other comprehensive income in respect of that entity are accounted for as if the recognised in disposed of the related assets or liabilities. This may mean that amounts previously category of other comprehensive income are reclassified to profit or loss or transferred to another eliminated unless the transaction provides evidence of an impairment of the asset transferred. evidence of an impairment of the asset transferred. eliminated unless the transaction provides investees have been changed where necessary to ensure Accounting policies of equity accounted the Group. consistency with the policies adopted by investments is tested for impairment in accordance with The carrying amount of equity-accounted the policy described in note 2(j). control of a loss in not result do that interests non-controlling with transactions Group treats The the Group. A change in ownership interest results in an as transactions with equity owners of of the controlling and non-controlling interests to reflect adjustment between the carrying amounts Any difference between the amount of the adjustment to their relative interests in the subsidiary. When the Group the Group does not recognise any other unsecured long-term receivables, in the entity, including on behalf of the other entity. it has incurred obligations or made payments further losses, unless and joint ventures are its associates transactions between the Group and Unrealised gains on eliminated to the extent of the Group (iv) Equity accounting (v) in ownership interests Changes (b) and equity accounting Principles of consolidation NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 2 POLICIES SIGNIFICANT ACCOUNTING SUMMARY OF

Annual Report 2020 88 89 Annual Report 2020 s ’ (CONTINUED) s net assets including ’ s proportionate share of the s proportionate share of the ’ (Continued) YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES s net identifiable assets. Acquisition-related costs are expensed as incurred. s net identifiable assets. Acquisition-related ’ Contingent consideration is classified either as equity or a financial liability. Amounts classified as a as classified Amounts liability. financial a or equity as either classified is consideration Contingent to fair value with changes in fair value recognised in financial liability are subsequently remeasured profit or loss. stages, the acquisition date carrying value of the acquirer If the business combination is achieved in is remeasured to fair value at the acquisition date. Any previously held equity interest in the acquiree gains or losses arising from such remeasurement are recognised in profit or loss. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business and contingent liabilities assumed in a business Identifiable assets acquired and liabilities acquisition the at values fair their at initially measured exceptions, limited with are, combination interest in the acquired entity on an acquisition-by- date. The Group recognises any non-controlling the non-controlling interest acquisition basis either at fair value or at acquired entity acquired in the interest non-controlling of any amount transferred, consideration of the excess The the over entity acquired interest in the equity any previous of value fair acquisition-date and entity, less amounts are goodwill. If those recorded as assets acquired is fair value of the net identifiable assets of the business acquired, the difference is recognisedthan the fair value of the net identifiable directly in profit or loss as a bargain purchase. The acquisition method of accounting is used to account for all business combinations, regardless all business combinations, regardless for used to account is accounting of The acquisition method The consideration transferred for the or other assets are acquired. of whether equity instruments assets transferred, liabilities incurred to comprises the fair values of the acquisition of a subsidiary issued by the Group, fair value of any the acquired business, equity interests the former owners of pre- any of value fair and arrangement, consideration contingent a from resulting liability or asset existing equity interest in the subsidiary. investments if the dividend exceeds the total comprehensive income of the subsidiary in the period the in the period the investments if the dividend exceeds the total comprehensive income of the subsidiary statements financial separate the in the investment of amount carrying the if declared or is dividend exceeds the carrying amount in the consolidated financial statements of the investee goodwill. Investments in subsidiaries are accounted for at cost less impairment. Cost also includes direct attributable Investments in subsidiaries are accounted for at cost less impairment. Cost also includes on the basis of dividend costs of investment. The results of subsidiaries are accounted for by the Company and receivable. dividends from these Impairment testing of the investments in subsidiaries is required upon receiving (vi) Business combinations (c) Separate financial statements (b) and equity accounting Principles of consolidation 2 POLICIES SIGNIFICANT ACCOUNTING SUMMARY OF s s ’ . ” functional functional “ (CONTINUED) . All other foreign . All other foreign ” Finance income/(costs) “ s entities are measured using s entities are measured using ’ Finance income/(costs) “ ). ” comprehensive income are recognised in other comprehensive income. currencies at year end exchange rates are recognised in the consolidated income statement. currencies at year end exchange rates are relate to borrowings and cash and cash equivalents are Foreign exchange gains and losses that statement presented in the consolidated income in the income statement within exchange gains and losses are presented at fair value in a foreign currency are translated using the Non-monetary items that are measured differences on assets value was determined. Translation when the fair exchange rates at the date loss. For example, and liabilities carried at fair value are reported as part of the fair value gain or held at fair value translation differences on non-monetary assets and liabilities such as equities and loss or gain value fair the of part as loss or profit in recognised are loss or profit through through other translation differences on non-monetary assets such as equities classified as fair value Items included in the financial statements of each of the Group Items included in the financial statements in which the entity operates (the the currency of the primary economic environment currency presented in Renminbi (RMB), which is the Company The consolidated financial statements are functional and presentation currency. into the functional currency using the exchange rates Foreign currency transactions are translated exchange gains and losses resulting from the settlement of at the dates of the transactions. Foreign of monetary assets and liabilities denominated in foreign such transactions and from the translation (ii) and balances Transactions (i) Functional and presentation currency Operating segments are reported in a manner consistent with the internal reporting provided to the chief the internal reporting provided to the are reported in a manner consistent with Operating segments who is responsible for allocating resources The chief operating decision-maker, operating decision-maker. of been identified as the Executive Directors of the operating segments, has and assessing performance strategic decisions. the Company that makes (e) Foreign currency translation (d) Segment reporting NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 2 POLICIES SIGNIFICANT ACCOUNTING SUMMARY OF

Annual Report 2020 90 91 Annual Report 2020 (CONTINUED) s entire interest in a foreign ’ s ownership interest in associates s ownership interest in associates ’ YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU (Continued) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing (unless this is not a reasonable approximation and expenses are translated at the dates of the on the transaction dates, in which case income transactions); and date of that balance sheet; In the case of a partial disposal that does not result in the Group losing control over a subsidiary subsidiary a over control losing Group the in result not does that disposal partial a of case the In accumulated currency translation of proportionate share the operation, foreign that includes a in profit or loss. differences are re-attributed to non-controlling interests and are not recognised For all other partial disposals (that is, reductions in the Group joint control) the or joint ventures that do not result in the Group losing significant influence or or loss. proportionate share of the accumulated exchange difference is reclassified to profit Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as treated are operation a foreign of acquisition the on arising adjustments value fair and Goodwill and translated at the closing rate. assets and liabilities of the foreign operation is, a disposal of the Group On the disposal of a foreign operation (that control over a subsidiary that includes a foreign operation, operation, or a disposal involving loss of operation, or a a disposal involving loss of joint control over a joint venture that includes a foreign operation), all disposal involving loss of significant influence over an associate that includes a foreign attributableof the currency translation differences accumulated in equity in respect of that operation to the owners of the Company are reclassified to profit or loss. – – for each income statement are translated at average exchange rates income and expenses – income. all resulting exchange differences are recognised in other comprehensive in investment net any of translation the from arising differences exchange consolidation, On other financial instruments designated as hedges of such foreign entities, and of borrowings and income. When a foreign operation is sold or investments, are recognised in other comprehensive investment are repaid, the associated exchange differences any borrowings forming part of the net the gain or loss on sale. are reclassified to profit or loss, as part of The results and financial position of foreign operations (none of which has the currency of a of a the currency of which has operations (none position of foreign The results and financial currency presentation the from different currency functional a have that economy) hyperinflationary presentation currency as follows: are translated into the – sheet presented are translated at the closing rate at the assets and liabilities for each balance (iv) and partial disposal Disposal of foreign operation (iii) Group companies (e) Foreign currency translation 2 POLICIES SIGNIFICANT ACCOUNTING SUMMARY OF (CONTINUED) . ) for the purpose of impairment testing. The The testing. impairment of purpose the for ) ” ” CGUs “ Intangible operating rights “ which goodwill is monitored for internal management purposes. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity Gains and losses on the disposal of an entity include the carrying amount of goodwill sold. units ( cash-generating to allocated is Goodwill from the business allocation is made to those CGUs or groups of CGUs that are expected to benefit at the lowest level at combination in which the goodwill arose. The units or groups of units are identified Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised but it it but amortised not is Goodwill assets. intangible in included is subsidiaries of acquisitions on Goodwill that indicate circumstances in changes or events if frequently more or annually, impairment for tested is as described in note 2(j). it might be impaired, and is carried at cost less accumulated impairment losses Amortisation of intangible operating rights is calculated to write off their costs on a unit-of-usage basis basis unit-of-usage a costs on their off rights is calculated to write operating Amortisation of intangible volume throughout traffic total over the projected period particular a for volume traffic the based on life the throughout volume traffic total projected the regularly reviews Group The asset. of the life the obtained. be will studies traffic professional independent appropriate, considered is it if and asset, the of there be a material change from the previous estimates on Prospective adjustment will be made should the projected total traffic volume. where they are paid by the users of the toll highways and bridges. The concession grantors (the respective bridges. The concession grantors (the respective highways and toll users of the by the are paid where they any contractual guarantees for the recovery of the amounts of local governments) have not provided assets correspond to the rights granted by the respective construction costs incurred. The intangible users of the toll road/bridge services and are recorded in the concession grantors to the Group to charge consolidated balance sheet as responsible for the operation and management, maintenance and overhaul of the toll highways and highways and toll of the overhaul maintenance and management, and operation for the responsible are periods operating the during collected fees toll The periods. operating the approved during bridges highway/bridge assets are required to be returned to the local attributable to the Group. The relevant toll the operating rights without any compensation to the Group. government authorities upon the expiry of to account for the toll highway and bridge infrastructures The Group applies the intangible asset model The Group has been granted by the relevant local government authorities the rights to operate the toll toll authorities the rights to operate the granted by the relevant local government The Group has been of According to the approval documents for operating periods of 18 to 30 years. highways and bridges of for the construction is responsible Group the regulations, and the relevant government the relevant also facilities and equipment and it is bridges and the acquisition of the related the toll highways and (g) Goodwill (f) operating rights Intangible NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 2 POLICIES SIGNIFICANT ACCOUNTING SUMMARY OF

Annual Report 2020 92 93 Annual Report 2020 s carrying ’ (CONTINUED) . ” YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 25 - 50 years 3 - 20 years 3 - 10 years Shorter of remaining lease term and useful life Shorter of remaining lease term and useful Other income, gains and losses – net s carrying amount or recognised as a separate asset, as as asset, a separate as recognised or amount carrying s “ ’ s carrying amount exceeds its recoverable amount. The recoverable amount s carrying amount exceeds its recoverable amount. The recoverable amount ’ s fair value less costs of disposal and value in use. For the purposes of assessing s fair value less costs of disposal and value in use. For the purposes of assessing ’ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting and adjusted if appropriate, at each reporting residual values and useful lives are reviewed, ’ s carrying amount is written down immediately to its recoverable amount if the asset s carrying amount is written down immediately ’ impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows impairment, assets are grouped at the lowest levels for which there are separately assets (cash-generating which are largely independent of the cash inflows from other assets or groups of reviewed for possible units). Non-financial assets other than goodwill that suffered an impairment are reversal of the impairment at the end of each reporting period. Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are Goodwill and intangible assets that have an indefinite useful life are not subject indicate that theytested annually for impairment, or more frequently if events or changes in circumstances changes in circumstances might be impaired. Other assets are tested for impairment whenever events or the for recognised is loss impairment An recoverable. be not may amount carrying the that indicate amount by which the asset is the higher of an asset occupied by the Group. Investment properties are initially measured at cost, including related transaction occupied by the Group. Investment properties are initially measured at cost, including value. Changes in fair costs and where applicable borrowing costs. Subsequently, they are carried at fair values are recorded in profit or loss as part of Gains and losses on disposals are determined by comparing the proceeds with carrying amount. These are Gains and losses on disposals are determined included in profit or loss. rental yields and are not Investment properties, principally freehold office buildings, are held for long-term The assets period. An asset amount (note 2(j)). amount is greater than its estimated recoverable over their estimated useful lives, as follows: Leasehold land classified as finance lease Buildings Furniture, fixtures and equipment Motor vehicles Subsequent costs are included in the asset the in included are Subsequent costs to benefits associated with the item will flow it is probable that future economic appropriate, only when The carrying amount of any component cost of the item can be measured reliably. the Group and the when replaced. All other repairs and maintenance costs accounted for as a separate asset is derecognised period in which they are incurred. are charged profit or loss during the reporting values, residual their of net cost, their allocate to method straight-line the using calculated is Depreciation Land and building comprise offices and staff quarters. Leasehold land classified as finance lease and all all land classified as finance lease and offices and staff quarters. Leasehold Land and building comprise cost less depreciation. Historical cost includes and equipment are stated at historical other property, plant items. attributable to the acquisition of the expenditure that is directly (j) Impairment of investments in non-financial assets (i) Investment properties (h) Property, plant and equipment 2 POLICIES SIGNIFICANT ACCOUNTING SUMMARY OF (CONTINUED) ). ” FVOCI ); or “ ” FVOCI “ ); ” s business model for managing the financial assets and the s business model for managing the financial ’ FVPL “ s perspective, such as loans and corporate bonds. s perspective, such as loans and corporate and ’ the Group commits to purchase or sell the asset. Financial assets are derecognised when the rights the Group commits to purchase or sell the asset. Financial assets are derecognised and the Group to receive cash flows from the financial assets have expired or have been transferred has transferred substantially all the risks and rewards of ownership. contractual terms of the cash flows. and losses will either be recorded in profit or loss or OCI. For assets measured at fair value, gains are not held for trading, this will depend on whether the For investments in equity instruments that at the time of initial recognition to account for the equity Group has made an irrevocable election income ( investment at fair value through other comprehensive for managing those The Group reclassifies debt investments when and only when its business model assets changes. the date on which Regular way purchases and sales of financial assets are recognised on trade-date, The classification requirements for debt and equity instruments are described below: The classification requirements for debt and that meet the definition of a financial liability from the Debt instruments are those instruments issuer of debt instruments depend on: Classification and subsequent measurement ‧ or loss); those to be measured subsequently at fair value (either through OCI or through profit ‧ those to be measured at amortised cost. The classification depends on the entity The Group classifies its financial assets in the following measurement categories: its financial assets in the following measurement The Group classifies ‧ ( Fair value through profit or loss ‧ income ( Fair value through other comprehensive ‧ Amortised cost. (ii) Recognition and derecognition (i) Classification (k) assets Investments and other financial NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 2 POLICIES SIGNIFICANT ACCOUNTING SUMMARY OF

Annual Report 2020 94 95 Annual Report 2020 Finance “ (CONTINUED) s business model for s business model for ’ in the period in which it arises. ), transaction costs that are directly that are directly ), transaction costs ” ” FVPL “ YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU (Continued) Other income, gains and losses – net cash flows represent solely payments of principal and interest, are of principal and interest, are cash flows represent solely payments ’ “ together with foreign exchange gains and losses. Impairment losses are and losses. Impairment losses are together with foreign exchange gains . Interest income from these financial assets is included in finance income from these financial . Interest income ” ” NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES and impairment expenses are presented as separate line items in the statement of and impairment expenses are presented as separate line items in the statement ” Finance income/(costs) Finance income/(costs) profit or loss. gain FVPL. A measured at are or FVOCI cost for amortised criteria meet the Assets that do not FVPL: in profit or loss or loss on a debt investment that is subsequently measured at FVPL is recognised and presented net within “ of profit or loss. presented as separate line items in the statement financial the selling for and flows cash contractual of collection for held are that Assets FVOCI: assets, where the assets carrying amount are taken through OCI, except for the measured at FVOCI. Movements in the interest income and foreign exchange gains and losses recognition of impairment gains or losses, the cumulative gain which are recognised in profit or loss. When the financial asset is derecognised, and recognised in or loss previously recognised in OCI is reclassified from equity to profit or loss “ in using the effective interest rate method. Foreign exchange gains and losses are presented income/(costs) whether their cash flows are solely payment of principal and interest. whether their cash flows are solely payment depends on the Group Subsequent measurement of debt instruments characteristics of the asset. There are three measurement managing the asset and the cash flow its debt instruments: categories into which the Group classifies flows cash those where flows cash contractual of collection for held are that Assets cost: Amortised interest are measured at amortised cost. Interest income represent solely payments of principal and finance income using the effective interest rate method. from these financial assets is included in is recognised directly in profit or loss and presented in Any gain or loss arising on derecognition At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a at its fair value plus, in the case of a the Group measures a financial asset At initial recognition, fair value through profit or loss ( financial asset not at costs of financial assets carried at of the financial asset. Transaction attributable to the acquisition profit or loss. FVPL are expensed in are considered in their entirety when determining Financial assets with embedded derivatives Debt instruments (iii) Measurement (k) assets Investments and other financial 2 POLICIES SIGNIFICANT ACCOUNTING SUMMARY OF s s ’ in in ” (CONTINUED) Finance income/(costs) “ s right to receive payments is established. s right ’ (Continued) when the Group ” Finance income/(costs) Finance (Continued) “ highly probable forecast transactions (cash flow hedges), or profit or loss as profit at FVPL are recognised in Changes in the fair value of financial assets Impairment losses (and reversal of impairment losses) the statement of profit or loss as applicable. are not reported separately from other changes in fair on equity investments measured at FVOCI value. The Group subsequently measures all equity investments at fair value. Where the Group measures all equity investments The Group subsequently losses on equity investments in OCI, to present fair value gains and management has elected the following loss or profit losses to gains and value fair of no subsequent reclassification there is in recognised be to continue investments such from Dividends investment. the of derecognition Equity instruments ‧ hedges of a net investment in a foreign operation (net investment hedges). between hedging At the inception of the hedging, the Group documents the economic, relationship the hedging instruments instruments and hedged items, including whether changes in the cash flows of risk its documents Group The items. hedges of flows cash the in changes offset to expected are management objective and strategy for undertaking its hedge transactions. instrument, and if so, the nature of the item being hedged. The Group designates certain derivatives as instrument, and if so, the nature of the item being hedged. The Group designates either: ‧ hedges) hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value ‧ and liabilities and assets recognised of flows cash the with associated risk particular a of hedges Derivatives are initially recognised at fair value on the date a derivative contract is entered into and value on the date a derivative contract is entered into and Derivatives are initially recognised at fair accounting The period. reporting of each the end at value fair their to remeasured subsequently are as a hedging for subsequent changes in fair value depends on whether the derivative is designated assets carried at amortised cost. The impairment methodology applied depends on whether there has has there whether on depends applied methodology impairment The cost. amortised at carried assets been a significant increase in credit risk. the simplified approach permitted by HKFRS 9, which requires For trade receivables, the Group applies from initial recognition of the receivables, see note 3.1(b) for expected lifetime losses to be recognised further details. The Group assesses on a forward looking basis the expected credit losses associated with its financial basis the expected credit losses associated with its financial The Group assesses on a forward looking (iii) Measurement (m) activities Derivatives and hedging (l) at amortised costs Impairment of financial assets (k) assets Investments and other financial NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 2 POLICIES SIGNIFICANT ACCOUNTING SUMMARY OF

Annual Report 2020 96 97 Annual Report 2020 as ) is ’ ” (CONTINUED) Finance income/(costs) “ aligned forward element ‘ YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU equity are shown in note 25. The full fair value value fair full The 25. note in shown are equity ’ (Continued) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES interest expense on the hedged borrowings. as inventory), both the deferred hedging gains and losses and the deferred time value of the as inventory), both the deferred hedging of the cost initial within the included any, are if forward points, or deferred contracts option hedged item asset. The deferred amounts are ultimately recognised in profit or loss as the affects profit or loss (for example through cost of sales). time as the rate borrowings is recognised in profit or loss within finance cost at the same When a hedging instrument expires, or is sold or terminated, or when a hedge no longer meets the When a hedging instrument expires, or is sold or terminated, or when a hedge no and deferred costs of hedging in or loss deferred gain for hedge accounting, any cumulative criteria in the recognitionequity at that time remains in equity until the forecast transaction occurs, resulting longer expected to of a non-financial asset such as inventory. When the forecast transaction is no in equity are occur, the cumulative gain or loss and deferred costs of hedging that were reported immediately reclassified to profit or loss. recognised within OCI in the costs of hedging reserve within equity. recognised within OCI in the costs of hedging in the periods when the hedged item affects profit Amounts accumulated in equity are reclassified or loss, as follows: ‧ in the recognition of a non-financial asset (such Where the hedged item subsequently results ‧ The gain or loss relating to the effective portion of the interest rate swaps hedging variable The effective portion of changes in the fair value of derivatives that are designated and qualify as fair value of derivatives that are designated and qualify as The effective portion of changes in the hedge reserve within equity. The gain or loss relating to cash flow hedges is recognised in cash flow in profit or loss within the ineffective portion is recognised immediately shown in note 9. transactions, the Group generally designates contracts are used to hedge forecast When forward contract related to the spot component as the hedging only the change in fair value of the forward effective portion of the change in the spot component of instrument. Gains or losses relating to the the cash flow hedge reserve within equity. The change in the forward contracts are recognised in relates to the hedged item ( the forward element of the contract that maturity of the hedged item is less than 12 months. Trading derivatives are classified as a current asset or derivatives are classified as a current asset item is less than 12 months. Trading maturity of the hedged liability. (i) Cash flow hedge that qualify for hedge accounting The fair values of derivative financial instruments designated in hedge relationships are disclosed in note in note disclosed are hedge relationships in designated financial instruments of derivative values The fair shareholders in reserve hedging the in Movements 20. the liability when the remaining maturity of is classified as a non-current asset or of a hedging derivative asset or liability when the remaining than 12 months; it is classified as a current hedged item is more (m) and hedging activities Derivatives 2 POLICIES SIGNIFICANT ACCOUNTING SUMMARY OF (CONTINUED) (Continued) Changes in the fair value of any derivative instrument that does not qualify for hedge accounting does not qualify for hedge accounting value of any derivative instrument that Changes in the fair in other income, gains and losses - net. in profit or loss and are included are recognised immediately settlement of the liability for at least 12 months after the end of the reporting period. costs of the loan to the extent that it is probable that some or all the facility will be drawn down. In In down. be drawn will facility the all or some that probable is it that extent the to loan of the costs is no evidence that it is this case, the fee is deferred until the drawn-down occurs. To the extent there as a prepayment for probable that some or all of the facility will be drawn down, the fee is capitalised liquidity services and amortised over the period of the facility to which it relates. right to defer Borrowings are classified as current liabilities unless the Group has an unconditional Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are Borrowings are incurred. costs transaction of net value, fair at are recognised initially Borrowings (net of transaction costs) subsequently measured at amortised cost. Any difference between the proceeds borrowings using the and the redemption value is recognised in profit or loss over the period of the recognised as transaction effective interest method. Fees paid on the establishment of loan facilities are Trade and other payables are recognised initially at the amount of consideration that is unconditional initially at the amount of consideration that is unconditional Trade and other payables are recognised components and subsequently measured at amortised cost using unless they contain significant financing other payables are classified as current liabilities unless payment the effective interest method. Trade and is not due within 12 months after the reporting period. Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or Ordinary shares are classified as equity. Incremental net of tax, from the proceeds. options are shown in equity as a deduction, For the purpose of presentation in the consolidated statement of cash flows, cash and cash equivalents equivalents cash cash and flows, of cash statement consolidated presentation in the of the purpose For at call with financial instruments and short-term bank deposits includes cash on hand and deposits held or less that are readily convertible to known amounts of cash and with original maturities of three months of changes in value. which are subject to an insignificant risk Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using Trade receivables are recognised initially for due generally are receivables Trade impairment. for provision less method, interest effective the are all classified as current. settlement within 30 days and therefore (ii) qualify for hedge accounting Derivatives that do not (r) Borrowings and borrowing costs (q) other payables Trade and (p) Share capital (o) cash equivalents Cash and (n) Trade receivables (m) and hedging activities Derivatives NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 2 POLICIES SIGNIFICANT ACCOUNTING SUMMARY OF

Annual Report 2020 98 99 Annual Report 2020 s taxable income ’ (CONTINUED) s subsidiaries, associates and a joint joint a and associates subsidiaries, s ’ YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU (Continued) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) neither accounting nor taxable profit or loss. Deferred income tax is determined and are expected to that have been enacted or substantially enacted by the end of the reporting period tax liability is settled. apply when the related deferred income tax asset is realised or the deferred income authorities. arising method, on temporary differences liability in full, using the provided tax is Deferred income financial consolidated the in amounts carrying their and liabilities and assets of bases tax the between recognition from the initial arise if they recognised liabilities are not However, deferred tax statements. recognition of an asset of goodwill. Deferred income tax is also not accounted for if it arises from initial of the transaction affects or liability in a transaction other than a business combination that at the time The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted of the tax laws enacted or substantively the basis on is calculated tax charge The current income Company the where countries the in date reporting of end the at positions taken in venture operate and generate taxable income. Management periodically evaluates to interpretation. tax returns with respect to situations in which applicable tax regulation is subject to be paid to the tax It establishes provisions where appropriate on the basis of amounts expected The income tax expense or credit for the period is the tax payable on the current period The income tax expense or credit for the in deferred tax assets based on the applicable income tax rate for each jurisdiction adjusted by changes and liabilities attributable to temporary differences and to unused tax losses. The corporate bonds are recognised initially at fair value, net of debt issuance costs incurred. Corporate The corporate bonds are recognised initially the proceeds (net of debt between difference any cost; stated at amortised bonds are subsequently income statement over the consolidated in the recognised value is redemption the issuance costs) and effective interest method. period of the corporate bonds using the Notes payable are recognised initially at fair value, net of debt discount. Debt issuance costs incurred fair value, net of debt discount. Debt issuance costs incurred Notes payable are recognised initially at and amortised over the estimated term of the facilities using which are directly attributable are capitalised the proceeds received and the reduction of a recorded as is discount method. Debt interest effective the in the consolidated income statement over the estimated related accretion is recorded as interest expense method. term of the facilities using the effective interest All other borrowing costs are charged to the consolidated income statement in the period in which they statement in the period in which costs are charged to the consolidated income All other borrowing are incurred. financing are included as a component of finance cost. Foreign exchange differences arising from General and specific borrowing costs that are directly attributable to the acquisition or construction of of to the acquisition or construction borrowing costs that are directly attributable General and specific complete and to period of time that is required capitalised during the and ports are highways, bridges its intended use or sale. prepare the asset for (u) deferred income tax Current and (t) Corporate bonds (s) Notes payable (r) and borrowing costs Borrowings 2 POLICIES SIGNIFICANT ACCOUNTING SUMMARY OF (CONTINUED) s best estimate of the expenditures required ’ (Continued) interest expense. be small. Provisions are measured at the present value of management rate used to determine to settle the present obligation at the end of the reporting period. The discount money of value time the of assessments market current reflects that rate pre-tax a is value present the of time is recognised as and the risks specific to the liability. The increase in the provision due to passage Provisions are recognised when: the Group has a present legal or constructive obligation as a result of past has a present legal Group Provisions are recognised when: the will be required to settle the obligation; and the amountevents, it is probable that an outflow of resources not recognised for future operating losses. has been reliably estimated. Provisions are in required will be that an outflow the likelihood obligations, are a number of similar Where there is recognised even settlement is determined by considering the class of obligations as a whole. A provision class of obligations may if the likelihood of an outflow with respect to any one item included in the same Current and deferred income tax is recognised in profit or loss, except to the extent that it relates to items Current and deferred income tax is recognised or directly in equity. In this case, the tax is also recognised in recognised in other comprehensive income equity, respectively. other comprehensive income or directly in Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset are offset when there is a legally enforceable right to offset Deferred income tax assets and liabilities when the deferred income taxes balances relate to the same current income tax assets and liabilities and assets and tax liabilities are offset where the entity has a legally taxation authority. Current income tax the settle the asset and to realise or basis, net on a to settle either intends and offset to right enforceable liability simultaneously. to utilise those temporary differences and losses. to utilise those temporary the between differences temporary for recognised not assets are and liabilities tax income Deferred the control to able is the Group where operations foreign in carrying amount and tax bases of investments and it is probable that the differences will not reverse timing of the reversal of the temporary differences in the foreseeable future. The deferred income tax liability in relation to investment property that is measured at fair value is is property that is measured at fair value tax liability in relation to investment The deferred income through sale. the property will be recovered entirely determined assuming that future taxable amount will be available assets are recognised only if it is probable Deferred income tax (v) Provisions (u) tax Current and deferred income NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 2 POLICIES SIGNIFICANT ACCOUNTING SUMMARY OF

Annual Report 2020 100 101 Annual Report 2020 (CONTINUED) s incremental borrowing incremental s ’ YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES option. rate as at the commencement date loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of loss over the lease period so as to produce a constant periodic rate of interest on the liability for each period. To determine the incremental borrowing rate, the Group uses recent third-party financing received by the To determine the incremental borrowing rate, the Group uses recent third-party third party since conditions financing in changes reflect to adjusted point, starting a as lessee individual financing was received. is charged to profit or Lease payments are allocated between principal and finance cost. The finance cost The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be the interest rate implicit in the lease. If that rate cannot be The lease payments are discounted using lessee the Group, the in leases for case the generally is which determined, readily lessee would have to pay to borrow the funds necessary to rate is used, being the rate that the individual environment with similar obtain an asset of similar value to the right-of-use asset in a similar economic terms, security and conditions. ‧ is reasonably certain to exercise that option, and the exercise price of a purchase option if the Group ‧ Group exercising that payments of penalties for terminating the lease, if the lease term reflects the the in included also are options extension certain reasonably under made be to payments Lease measurement of the liability. ‧ less any lease incentives receivable fixed payments (including in-substance fixed payments), ‧ on an index or a rate, initially measured using the index or variable lease payment that are based ‧ residual value guarantees amounts expected to be payable by the Group under the contract to the lease and non-lease components based on their relative stand-alone prices. However, on their relative stand-alone prices. However, and non-lease components based the contract to the lease elected not to separate lease and non-lease for which the Group is a lessee, it has for leases of real estate component. accounts for these as a single lease components and instead liabilities Lease basis. value present a on measured initially are a lease from arising liabilities and Assets lease payments (where applicable): include the net present value of the following Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased liability at the date at which the leased as a right-of-use asset and a corresponding Leases are recognised use by the Group. asset is available for in consideration the allocates Group The components. non-lease and lease both contain may Contracts (w) Leases 2 POLICIES SIGNIFICANT ACCOUNTING SUMMARY OF (CONTINUED) s useful life and the lease term ’ s useful life. ’ s activities. If contracts involve the sale of multiple services, the transaction ’ s contributions to the defined contribution retirement schemes are expensed as incurred. The s contributions to the defined contribution retirement schemes are expensed as ’ (Continued) Revenue is measured at the fair value of the consideration received or receivable for the services in the for the services in the Revenue is measured at the fair value of the consideration received or receivable ordinary course of the Group selling prices. If price will be allocated to each performance obligation based on their relative stand-alone on expected cost plus a the stand-alone selling prices are not directly observable, they are estimated based observable information. margin or adjusted market assessment approach, depending on the availability of and prior periods. The Group administered fund. assets of the schemes are held separately from those of the Group in an independently A defined contribution plan is a pension plan under which the Group pays fixed contributions into a a into contributions fixed pays Group the which under plan pension a is plan contribution defined A contributions if the fund separate entity. The Group has no legal or constructive obligations to pay further service in the current does not hold sufficient assets to pay all employees the benefits relating to employee Lease income from operating leases where the Group is a lessor is recognised in income on a straight- Lease income from operating leases where in obtaining an operating lease are added to the direct costs incurred line basis over the lease term. Initial and recognised as expense over the lease term on the same basis carrying amount of the underlying asset are included in the balance sheet based on their nature. The as lease income. The respective leased assets of a result as as lessor held for assets accounting the any adjustments to need to make not Group did adopting the new leasing standard. asset is depreciated over the underlying asset and leases of low-value assets are recognised on a straight- Payments associated with short-term leases Short-term leases are leases with a lease term of 12 months or line basis as an expense in profit or loss. of office furniture. less. Low-value assets comprise small items ‧ any initial direct costs, and ‧ restoration costs. over the shorter of the asset Right-of-use assets are generally depreciated certain to exercise a purchase option, the right-of-use on a straight-line basis. If the Group is reasonably Right-of-use assets are measured at cost comprising the following: Right-of-use assets are ‧ of lease liability the amount of the initial measurement ‧ any lease incentives received before the commencement date less any lease payments made at or (y) Revenue recognition (x) Retirement benefit costs (w) Leases NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 2 POLICIES SIGNIFICANT ACCOUNTING SUMMARY OF

Annual Report 2020 102 103 Annual Report 2020 (CONTINUED) YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU s performance: ’ s performance in satisfying the performance obligation: s performance in satisfying the performance ’ s performance creates or enhances an asset or work in s performance creates or enhances an asset or work in ’ (Continued) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES s efforts or inputs to the satisfaction of the performance obligation relative to the total s efforts or inputs to the satisfaction of ’ progress that the customer controls as the asset is created or enhanced. Thus, the Group satisfies a progress that the customer controls as the asset is created or enhanced. Thus, the assessed performance obligation over time, by reference to completion of the specific transaction of total estimated on the basis of the actual costs incurred up to the end of year as a percentage the amount of costs for each contract. In determining the transaction price, the Group adjusts consideration for the effect of a financing component if it is significant. expected efforts or inputs. provided. point in time when the related services are lease. in the consolidated income statement on a straight-line basis over the term of the is recognised over time as the Group right to payment for performance completed to date. right to payment for performance completed (iii) (iii) Group the by rendering services upgrade and construction from generated income Construction (i) (i) and other toll operating income is recognised at a Toll revenue from road and bridge operations (ii) Rental income from investment property and income from service area and gas station is recognised The progress towards complete satisfaction of the performance obligation is measured based on one of The progress towards complete satisfaction Group the following methods that best depict the ‧ the Group to the customer; or direct measurements of the value transferred by ‧ the Group If control of the asset transfers over time, revenue is recognised over the period of the contract by revenue is recognised over the period of the contract by If control of the asset transfers over time, Otherwise, obligation. performance that of satisfaction complete towards progress the to reference when the customer obtains control of the asset. Specific criteria revenue is recognised at a point in time below. where revenue is recognised are described Control of the service is transferred over time if the Group Control of the service ‧ simultaneously by the customer; provides all of the benefits received and consumed ‧ as the Group performs; or creates or enhances an asset that the customer controls ‧ has an enforceable does not create an asset with an alternative use to the Group and the Group Revenues are recognised when or as the control of the service is transferred to the customer. Depending is transferred to the customer. Depending when or as the control of the service Revenues are recognised be the contract, control of the service may contract and the laws that apply to on the terms of the or at a point in time. transferred over time (y) Revenue recognition 2 POLICIES SIGNIFICANT ACCOUNTING SUMMARY OF s s ’ s and the the and s ’ (CONTINUED) ), where appropriate. ” Directors “ s shareholders is recognised as a liability in the Group in the liability a as is recognised shareholders s ’ s financial statements in the period in which the dividends are approved by the Company in the period in which the dividends s financial statements ’ Government grants relating to costs are deferred and recognised in the profit or loss over the period period the or loss over in the profit and recognised deferred are costs to grants relating Government they are intended to compensate. necessary to match them with the costs that of property, plant and equipment are included in non-current Government grants relating to the purchase to profit or loss on a straight-line basis over the expected liabilities as deferred income and are credited lives of the related assets. customer and assumes performance obligations to provide services to the customer. customer and assumes performance obligations at their fair value where there is a reasonable assurance that Grants from the government are recognised will comply with all attached conditions. the grant will be received and the Group Dividend income is recognised when the right to receive payment is established. when the right to receive payment Dividend income is recognised the effective interest method. on a time-proportion basis using Interest income is recognised the Group obtains rights to receive consideration from the Upon entering into a contract with a customer, Dividend distribution to the Company the to distribution Dividend Company of the Company ( shareholders or Directors (ab) Government grants (aa) Contract liabilities (z) income and interest income distribution, dividend Dividend NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 2 POLICIES SIGNIFICANT ACCOUNTING SUMMARY OF

Annual Report 2020 104 105 Annual Report 2020 s s ’ 000 000 211 421 ’ ’ Total Total (7,158) 29,088 13,871 (20,105) (445,531) (419,810) RMB RMB

) ) ” ” 1 — — — — — 28 000 000 ’ ’ USD USD (6,976) “ “ RMB RMB United States dollars ( United States Denominated in dollars (

Denominated in ) ) ” ” s overall risk management policy focuses s overall risk management ’ 000 000 211 421 ’ ’ (182) YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU HKD HKD “ 29,087 13,843 “ (20,105) (445,531) (419,810) RMB RMB Hong Kong Denominated dollars ( in Hong Kong Denominated in dollars (

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES Other payable Bank borrowings As at 31 December 2019 Cash and cash equivalents Other receivables Other payable Bank borrowings As at 31 December 2020 Cash and cash equivalents Other receivables The functional currency of the Company and its major subsidiaries is RMB. Majority of the and its major subsidiaries is RMB. Majority of the The functional currency of the Company operations in the PRC. It did not have significant revenues of the Group are derived from PRC, except for certain balances as set out below: exposure to foreign exchange risk in the s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, (including foreign exchange risk, market risk risks: financial of variety to a it activities expose s (i) Foreign exchange risk ’ (a) risk Market 3.1 Financial risk factors The Group The Group price risk), credit risk and liquidity risk. The interest rate risk and Group potential adverse effects on the of financial markets and seeks to minimise on the unpredictability forward exposure and entered foreign exchange The Group regularly monitors its financial performance. bank borrowings as mentioned in 3.1(a)(i). the foreign exchange rate risk arising from contracts to mitigate 3 MANAGEMENT FINANCIAL RISK 000 (164) ’ 2019 (2,377) (6,676) (9,742) (16,418) (18,000) (20,541) RMB

— — 000 592 ’ 2020 6,637 7,229 (10,287) (10,287) RMB

(CONTINUED) (Continued) (Continued) upon liquidation of a subsidiary reserve Cash flow hedges – movement in hedging Net gain/(loss) recognised in other comprehensive income (note 25) Net other exchange loss Net exchange loss on bank borrowings included in finance income/(costs) Net foreign exchange loss recognised in profit before income tax for the year Currency translation differences Release of currency translation differences Amounts recognised in consolidated income statement Amount recognised in other comprehensive income During the year ended 31 December 2020, the following foreign-exchange related foreign-exchange related 31 December 2020, the following During the year ended and consolidated statement of in consolidated income statement amounts were recognised comprehensive income: (i) Foreign exchange risk (Continued) (a) Market risk 3.1 Financial risk factors NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 3 MANAGEMENT FINANCIAL RISK

Annual Report 2020 106 107 Annual Report 2020 YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU (CONTINUED) s borrowings at variable rate were mainly denominated in rate were mainly denominated s borrowings at variable ’ s maximum exposure to credit risk in relation to its financial assets. ’ (Continued) s Government (note 21), which is of minimal risk taking into account the s Government (note 21), which is of minimal risk taking into account the ’ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES s main interest rate risk arises from bank balances, borrowings, notes payable and s main interest rate risk arises from bank ’ (Continued) risk. Group policy is to minimise the interest rate risk by closely monitor the ratio between between ratio the monitor closely by risk rate interest the minimise to policy is risk. Group notes payable and corporate bonds at fixed rates.borrowings at variable rates and borrowings, During 2020 and 2019, the Group RMB and HKD. other all with higher/lower points basis 50 been had rates interest if 2020, December 31 At the year would have been decreased/increased by variables held constant, post-tax profit for RMB39,020,000 (2019: RMB47,166,000). control promulgated by the PRC government. by 5% against the RMB with As at 31 December 2020, if HKD had weakened/strengthened profit for the year would have been approximately all other variables held constant, post-tax higher/lower), mainly as a result of net foreign RMB470,000 higher/lower (2019: RMB283,000 currency denominated balances. exchange gain/(loss) on translation of foreign The Group rates expose the Group to cash flow interest corporate bonds. Borrowings issued at variable notes Borrowings, rates. variable at held balance bank by offset partially is which risk rate rates expose the Group to fair value interest rate payable and corporate bonds issued at fixed During the year ended 31 December 2019, the Group had entered into forward contracts with 31 December 2019, the Group had entered During the year ended foreign exchange rate in order to mitigate the amounts of HKD500,000,000 notional principal currency bank borrowing. risk arising from foreign to the rules and regulations of foreign exchange The conversion of RMB into HKD is subject receivables, trade receivables, other receivables, deposits and prepayments, and amount due from amount due from receivables, trade receivables, other receivables, deposits and prepayments, and an associate represent the Group with placed are balances such as minimal is balances bank and deposits bank for risk credit The are subject to low state-owned banks or listed banks, and management considers these balances amounts to credit risk. The Group carries out regular reviews and follow-up actions on any overdue minimise exposures to credit risk. except for the The Group has no significant concentration of credit risk arising from its customers, from government consideration receivable of RMB25.9 million (2019: RMB50.4 million) which is due to the Xiangtan authorities in the PRC in relation to compensation for surrendering the toll stations Municipal People relationship and financial ability of the counterparty. The carrying amounts of short-term bank deposits, cash and cash equivalents, other non-current other non-current The carrying amounts of short-term bank deposits, cash and cash equivalents, (ii) Cash flow and fair value interest rate risk (i) Foreign exchange risk (Continued) (b) Credit risk (a) Market risk 3.1 Financial risk factors 3 MANAGEMENT FINANCIAL RISK s business, the Group ensures that it maintains s business, the Group ensures that it maintains ’ (CONTINUED) s financial liabilities based on the remaining period at the s financial liabilities based on the remaining period at the ’ s financial liabilities into relevant maturity groupings based on into relevant maturity groupings s financial liabilities ’ (Continued) (Continued) essential for an understanding of the timing of the cash flows essential for an understanding of the timing The tables below analyse the Group their contractual maturities for: (a) all non-derivative financial liabilities, and (b) which the contractual maturities are net and gross settled derivative financial instruments for The table below analyses the Group the table are the balance sheet date to the contractual maturity dates. The amounts disclosed in contractual undiscounted cash flows (including respective interest payments). measured as either 12-month expected credit losses or lifetime expected credit losses, depending credit losses or lifetime expected credit losses, depending measured as either 12-month expected increase in credit risk since initial recognition. If a significant on whether there has been a significant initial recognition, the impairment is measured as lifetime increase in credit risk have occurred since expected credit losses. as security. The maximum exposure to credit risk at the The Group does not hold any collateral receivables as stated in the consolidated balance sheet. reporting date is the carrying value of the Group Due to the capital intensive nature of the liquidity requirements (see also Note 2(a)(ii)). sufficient cash and credit lines to meet its The Group applies simplified approach to measure expected credit losses which uses a lifetime lifetime uses a to measure expected credit losses which approach applies simplified The Group expected loss rate applied. The for all trade receivables with an insignificant expected loss allowance and hence the expected credit loss is trade receivables are PRC Government counterparty of the at amortised cost. of the Group continue to be recognised minimal. Trade receivables and prepayments and amount due from an associate are Impairment on other receivables, deposits (c) Liquidity risk (b) Credit risk 3.1 Financial risk factors NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 3 MANAGEMENT FINANCIAL RISK

Annual Report 2020 108 109 Annual Report 2020 000 153 ’ 1,611 30,021 amount Carrying RMB liabilities 1,219,362 2,492,974 1,909,152 18,952,216 13,298,943

000 153 ’ Total 1,611 31,598 816,685 RMB 2,716,120 1,941,910 cash flows 21,599,359 16,091,282 contractual

— — — — — — 000 ’ RMB 5,515,553 5,515,553 Over 5 years

— — — — 000 ’ 10,330 RMB 8,012,267 6,459,176 1,542,761 Between 2 and 5 years YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU

— — — — 000 ’ 10,110 RMB 3,663,687 2,568,418 1,085,159 (CONTINUED) Between 1 and 2 years

— — 000 ’ 1 year 11,158 88,200 816,685 RMB Less than 4,406,088 1,941,910 1,548,135

— — — — — 000 153 ’ 1,764 1,611 RMB On demand (Continued)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES (Continued) Lease liabilities financial liabilities As at 31 December 2020 Borrowings Notes payable Corporate bonds Amounts due to holding companies Amount due to a non-controlling interest of a subsidiary Trade and other payables and accrued charges Contractual maturities of (c) Liquidity risk 3.1 Financial risk factors 3 MANAGEMENT FINANCIAL RISK

331 000 ’ 2,490 1,611 (assets) 10,838 amount Carrying 996,522 liabilities/ RMB 1,115,038 1,907,554 19,328,202 15,439,299

331 000 ’ Total 2,490 1,611 11,250 969,557 RMB cash flows 1,104,359 2,007,220 contractual 23,115,245 19,018,427

— — — — — — — 000 ’ RMB 7,662,934 7,662,934 Over 5 years

— — — — — — 000 ’ RMB 8,753,390 7,451,891 1,032,759 Between 2 and 5 years

— — — — 370 000 ’ 35,800 RMB 3,839,143 1,861,063 1,941,910 Between 1 and 2 years (CONTINUED)

— — — 000 ’ 1 year 10,880 35,800 65,310 969,557 Less than RMB 3,124,086 2,042,539

— — — — — 000 331 ’ 4,432 2,490 1,611 RMB On demand (Continued)

(Continued) Lease liabilities accrued charges Contractual maturities of financial liabilities As at 31 December 2019 Borrowings Notes payable Corporate bonds Amounts due to holding companies Amount due to a joint venture Amount due to anon-controlling interest of a subsidiary Trade and other paya bles and

(c) Liquidity risk 3.1 Financial risk factors NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 3 MANAGEMENT FINANCIAL RISK

Annual Report 2020 110 111 Annual Report 2020 000 ’ 2019 2,490 55.4% 10,838 996,522 RMB 1,907,554 (1,435,062) 15,439,299 18,356,703 16,921,641 13,628,750 30,550,391

— 000 ’ 2020 54.3% 30,021 RMB 2,492,974 1,909,152 s ability to continue as a going s ability to continue (1,516,004) ’ 13,298,943 17,731,090 16,215,086 13,653,745 29,868,831

YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU (CONTINUED) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES s objectives when managing capital are to safeguard the Group s objectives when managing ’ Total capital Gearing ratio Total debt Less: cash and cash equivalents Net debt Total equity Borrowings Notes payable Corporate bonds Amount due to a joint venture Lease liabilities

repayments during the year. The decrease in the gearing ratio during 2020 primarily resulted from the decrease in borrowings due to The decrease in the gearing ratio during 2020 primarily resulted from the decrease capital is calculated as equity, as shown in the consolidated balance sheet, plus net debt. capital is calculated as equity, as shown in The gearing ratio is calculated as follows: In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to may adjust the amount of dividends paid or adjust the capital structure, the Group In order to maintain shares or sell assets to reduce debt. shareholders, issue new Group monitors capital on the basis of the gearing ratio. This Consistent with others in the industry, the total capital. Net debt is calculated as the total of notes payable, ratio is calculated as net debt divided by consolidated the borrowings as shown in and non-current current (including bonds, borrowings corporate Total equivalents. cash and cash less liabilities lease and venture joint a to due amount sheet), balance The Group for other stakeholders and to maintain and benefits shareholders returns for order to provide concern in to reduce the cost of capital. an optimal capital structure 3.2 Capital risk management 3 MANAGEMENT FINANCIAL RISK

000 ’ Total 1,697 (24,042) RMB

— — 000 ’ Level 3 RMB

000 ’ 1,697 Level 2 (24,042) RMB (CONTINUED)

— — 000 ’ Level 1 s financial instruments that are measured at fair value. s financial instruments that are measured RMB ’

s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the transfers into and transfers out of fair s policy is to recognise ’ The fair value of financial instruments that are not traded in an active market (for example, over- The fair value of financial instruments that If one or more of the significant inputs is not based on observable market data, the instrument is If one or more of the significant inputs is The fair value of financial instruments traded in active markets (such as publicly traded derivatives, The fair value of financial instruments traded As at 31 December 2020 liabilities instruments - As at 31 December 2019 Derivative financial Derivative financial assets instruments - The following table presents the Group market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair market data and rely as little as possible is included in level 2. value an instrument are observable, the instrument Level 3: included in level 3. and trading and available-for-sale securities) is based on quoted market prices at the end of the reporting and trading and available-for-sale securities) financial assets held by the Group is the current bid price. These period. The quoted market price used for instruments are included in level 1. Level 2: valuation techniques which maximise the use of observable the-counter derivatives) is determined using each level follows underneath the table. each level follows underneath The Group hierarchy value fair 3 level and 2 level 1, level among transfers no were There period. reporting the of end classifications in both years. Level 1: This section explains the judgements and estimates made in determining the fair values of the financial determining the fair values of the financial the judgements and estimates made in This section explains an provide To statements. financial the in value fair at measured and recognised are that instruments its fair value, the Group has classified reliability of the inputs used in determining indication about the of the accounting standards. An explanation into the three levels prescribed under financial instruments The fair value of financial instruments that are not traded in an active market is determined by using is determined by using The fair value of financial instruments that are not traded in an active market market data where it valuation techniques. These valuation techniques maximise the use of observable of foreign currency is available and rely as little as possible on entity specific estimates. The fair values cash flows based on forwards contracts are calculated as the present value of the estimated future forward exchange rate at the balance sheet date. 3.3 Fair value estimation NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 3 MANAGEMENT FINANCIAL RISK

Annual Report 2020 112 113 Annual Report 2020 000 ’ 2019 25,123 RMB 1,001,584 1,911,024 14,393,538 31 December

— — Fair value 000 ’ 2020 RMB 2,500,756 11,701,664 31 December

000 ’ 2019 YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 22,916 996,522 RMB 1,907,554 14,134,151 31 December (CONTINUED)

— — 000 ’ 2020 Carrying amount RMB 2,492,974 12,321,643 31 December

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES (due after one year) Other non-current receivables Non-current borrowings Notes payable Corporate bonds ‧ Trade and other payables and accrued charges ‧ Corporate bonds due within one year ‧ Amounts due to a non-controlling interest of a subsidiary ‧ Amounts due to holding companies ‧ Amount due to a joint venture ‧ Other receivables, deposits and prepayments ‧ Amount due from an associate ‧ cash equivalents Cash and ‧ Borrowings due within one year The fair value of the following financial assets and liabilities approximate their carrying amount: The fair value of the following financial assets ‧ Trade receivables The carrying amount and fair value of respective financial assets and liabilities measured at amortised cost and liabilities assets financial value of respective amount and fair The carrying are as follows: The fair value of other non-current receivables and non-current borrowings approximate to the present borrowings approximate to the present non-current receivables and non-current The fair value of other The rates and are categorised at level 2. flows discounted at the applicable interest value of future cash not is it as techniques valuation using by determined is bonds corporate and payable notes of value fair and is categorised at level 2. traded in an active market 3.4 at amortised cost assets and liabilities measured Fair value of financial 3 MANAGEMENT FINANCIAL RISK s joint venture and ’ ) in early 2020, a series of of series a 2020, early in ) ” s revenue are generated from the ’ COVID-19 outbreak COVID-19 “ ) issued by the Ministry of Transport of the PRC, all of the PRC, all of ) issued by the Ministry of Transport of ” ). Basically, all of the Group ” Notice “ (the ” Toll Fee Exemption s recoverable amount, which is the higher of its fair value less costs of disposal and s recoverable amount, which is the higher of its fair value less costs of disposal “ ’ the Notice on Toll Roads Going Toll-Free During the Period of Precautionary and Control in During the Period of Precautionary and Control in the Notice on Toll Roads Going Toll-Free “ s accounting policies. Estimates and judgements are continually evaluated and are based on historical evaluated and are based on historical Estimates and judgements are continually s accounting policies. ’ discount rates in order to calculate the present value. When the carrying amount of the cash generating discount rates in order to calculate the present value. When the carrying amount to determine the unit exceeds its value-in-use, the Group also assesses its fair value less costs of disposal cash generating unit value-in-use. intangible operating rights have suffered any impairment whenever events or changes in circumstances in circumstances intangible operating rights have suffered any impairment whenever events or changes of cash generating indicate that the carrying amount may not be recoverable. The recoverable amounts value-in-use and fair value less costs of disposal calculations. based on units have been determined to arise from the cash- The calculation requires the Group to estimate the future cash flows expected and the use of suitable generating units to which the goodwill and intangible operating right belong The Group tests annually whether goodwill has suffered any impairment. The Group also tested whether Group also tested any impairment. The suffered has whether goodwill annually The Group tests definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of definition, seldom equal the related actual amounts of assets or liabilities within the next financial year are causing a material adjustment to the carrying discussed below. (a) Impairment of goodwill and intangible operating rights Group have resumed normal toll collection. Group have resumed normal toll collection. Group for the year ended 31 December 2020 was affected by the Toll The overall financial performance of the Fee Exemption. concerning the future. The resulting accounting estimates will, by The Group makes estimates and assumptions According to relation to the outbreak of COVID-19 or invested in by the Group were toll free from 17 February the expressways and bridge projects controlled 2020 till 5 May 2020 (the by the Group and the operations of the Group expressways and bridge projects as operated Exemption. Since 6 May 2020, all the expressways and bridges of the associates are also subject to this Toll Fee Following the outbreak of Coronavirus Disease 2019 (the (the 2019 Disease Coronavirus of outbreak the Following including to be implemented across China, measures have been and continued precautionary and control Chinese the after resumption work postponement of nationwide, holiday New Year Chinese the of extension level of restrictions and controls over the travelling of people and New Year holiday in some regions, certain traffic arrangements. The preparation of consolidated financial statement requires the use of accounting estimates which, by which, by estimates of accounting financial statement requires the use of consolidated The preparation the also needs to exercise judgement in applying equal the actual results. Management definition, will seldom Group under events that are believed to be reasonable factors, including expectations of future experience and other the circumstances. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 4 AND JUDGEMENTS ESTIMATES CRITICAL ACCOUNTING

Annual Report 2020 114 115 Annual Report 2020

(Continued) YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES The Group is subject to income tax in the PRC. Significant judgement is required in determining the the determining in required is Significant judgement PRC. in the income tax to subject is The Group There are many tax. for and the timing of payment of the related income amount of the provision ordinary the during uncertain is determination tax ultimate the which for calculations and transactions the amounts that were course of business. Where the final tax outcome of these matters is different from in periods the in provisions tax deferred and tax income the impact will differences such recorded, initially which such determination are made. At present, the range of annual traffic growth rates that have been projected for individual toll highways At present, the range of annual traffic growth rates that have been projected for significant repair and bridges is around 0% to 32% (excluding the growth rates in the year of performing and maintenance). Amortisation of intangible operating rights is calculated to write off their costs on a unit-of-usage basis basis unit-of-usage a costs on their off rights is calculated to write operating Amortisation of intangible volume throughout the based on the traffic volume for a particular period over the projected total traffic life of the assets. and the discount rate adopted was 7.5%. The Group has analysed the impact of lack of marketability marketability of lack of impact the analysed has Group 7.5%. The was adopted rate discount and the assessment, no significant impact to the result is noted. The result discount to the result of the impairment a headroom remains as of 31 December 2020. A 1% decrease of the impairment assessment indicates the recoverable amount by RMB4,750,000. An increase in the in revenue growth rate would decrease the recoverable amount by RMB8,338,000. These sensitivities are discount rate of 0.5%, would decrease while holding other assumptions constant. based on a change in the relevant assumption growth rates were projected by an independent traffic consultant based on traffic survey, historic traffic growth rates were projected by an independent toll network development at nearby areas. The discount rate data, historic economic indices and expected valuer with reference to risk-free rate, data of toll road was determined by an independent professional specific adjustments applicable to the Group. The estimated operators, market risk premium and other operating period of Jinxiong Expressway range from 5% to 32% revenue growth rates over the remaining assessment on the intangible operating right of Tianjin Jinfu Expressway Company Limited, a partially- operating right of Tianjin Jinfu assessment on the intangible The carrying amount of RMB453,073,000. operates Jinxiong Expressway with owned subsidiary which operating right was determined by measuring the fair value recoverable amount of the related intangible flow cash discounted a from derived was It use. in value the than higher is which disposal of costs less of Jinxiong Expressway with key assumptions including the model over the remaining concession period and was categorised as a level 3 measurement. The revenue revenue growth rates and the discount rates For the current financial year, the toll revenue of Jinxiong Expressway (an independent CGU) has recorded (an independent CGU) has recorded year, the toll revenue of Jinxiong Expressway For the current financial fee COVID-19 and implementation of toll which is mainly due to outbreak of a year-on-year decrease, The Group has performed an impairment from 17 February 2020 till 5 May 2020. exemption measures (c) and deferred income tax Current income tax (b) of intangible operating rights Amortisation (CONTINUED) (a) intangible operating rights Impairment of goodwill and 4 4 JUDGEMENTS AND ESTIMATES ACCOUNTING CRITICAL

s main reporting reporting main s ’ (Continued) ) has been identified as the Executive Directors. The Executive ) has been identified as the Executive Directors. ” CODM “ s internal reporting in order to assess performance of the Group the of performance assess to order in reporting internal s ’ The fair value of investment properties is determined by using valuation technique. Details of the is determined by using valuation technique. Details of the The fair value of investment properties in note 16. judgement and assumptions have been disclosed the future taxable profit based on the projected future traffic volume and specific circumstance of the toll future traffic volume and specific on the projected based the future taxable profit tax losses. Where the expectation is different operated by the individual entity with highways and bridges will impact the recognition of deferred income tax assets and from the original estimate, such differences is changed. income tax in the periods in which such estimate Deferred income tax assets relating to certain temporary differences and tax losses are recognised differences and tax losses are recognised assets relating to certain temporary Deferred income tax the which against available be will profit taxable future that probable is it considers management as exercises judgement in determining or tax losses can be utilised. The management temporary differences mainly comprise investment and others. There have been no sales carried out between segments. None of these mainly comprise investment and others. a in measured is CODM the to provided information financial The segment. separate a constitutes operations financial statements. manner consistent with that of the consolidated The Group is principally engaged in the operation and management of toll highways and bridges in the PRC. The Group is principally engaged in the operation The chief operating decision-maker (the Group the review Directors of performance the assess Directors Executive The PRC. the in projects bridges and highways Toll - segment of profit after income tax for the year. Other operations this main reporting segment based on measurement (d) of investment properties Fair value (CONTINUED) (c) income tax income tax and deferred Current NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 5 SEGMENT INFORMATION 4 4 JUDGEMENTS AND ESTIMATES ACCOUNTING CRITICAL

Annual Report 2020 116 117 Annual Report 2020 000 ’ Total 1,071 16,373 26,359 56,533 67,822 11,590 36,207 (16,053) (10,187) 682,421 404,336 (949,918) (805,757) (278,085) RMB 2,919,838 1,337,464 2,872,041 as the CODM ”

— — — — — — — — — — — — — 000 Revenue ’ (761) “ (2,316) (2,316) (2,316) to RMB All other segments ”

000 ’ YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 1,071 16,373 26,359 56,533 67,822 11,590 36,207 (15,292) (10,187) 684,737 406,652 (949,918) (805,757) (278,085) RMB 2,919,838 1,339,780 2,872,041 Toll roads operations

(CONTINUED) Other income, gains and losses – net Other income, gains “ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES s operating performance from toll roads operations. The comparative figures were not figures were not from toll roads operations. The comparative s operating performance ’ Income tax expense Profit/(loss) for the year Operating profit/(loss) Finance income Finance costs Share of result of a joint venture Share of results of associates Profit/(loss) before income tax – property, plant and equipment – right-of-use assets Compensation from government Government subsidy – Toll revenue – Other toll operating income – Income from service area and gas station Amortisation of intangible operating rights Depreciation of Year ended 31 December 2020 Revenue (from external customers) In 2020, the presentation of reportable segments of the Group are revised as certain other income from the the from income other certain as revised are Group the of segments reportable of presentation the 2020, In are reclassified from toll roads operations to information financial the of user the to presentation better provide could classification revised the believes evaluate the Group restated. 5 SEGMENT INFORMATION 000 ’ Total (2,490) 40,800 88,739 54,308 37,689 37,988 (17,278) (11,141) 262,484 311,847 487,605 273,610 471,055 (411,217) (305,402) (640,588) RMB 1,399,621 1,900,445 1,595,043 1,536,113 3,023,221 1,919,639 36,367,600 36,797,875 15,306,894 (23,169,125) (22,713,855)

— — — — — — — — — — — — — — — — — 000 ’ (162) (940) (940) (797) (940) 4,500 80,460 34,551 (76,317) 107,900 All other RMB segments

000 ’ (2,490) 40,800 88,739 54,308 37,689 37,988 (16,481) (11,141) 262,484 311,847 487,605 273,610 471,055 (411,217) (305,402) (640,588) RMB 1,395,121 1,901,385 1,595,983 1,455,653 3,023,221 1,920,579 Toll roads 36,259,700 36,763,324 15,306,894 operations (23,168,963) (22,637,538)

(CONTINUED) property, plant and equipment right-of-use assets – – Total segment liabilities include: to a joint venture Amount due Addition to non-current assets Total segment assets include: in a joint venture Investment in associates Investments Total segment liabilities in associates Investments Total segment liabilities As at 31 December 2019 Total segment assets Acquisition of subsidiaries Assets and liabilities As at 31 December 2020 Total segment assets Addition to non-current assets Total segment assets include: in a joint venture Investment Share of results of associates Profit/(loss) before income tax Income tax expense Profit/(loss) for the year Government subsidy Operating profit/(loss) Finance income Finance costs Share of result of a joint venture Amortisation of intangible operating rights Amortisation of intangible Depreciation of Compensation from government Gain on liquidation of a subsidiary 2019 Year ended 31 December customers) Revenue (from external NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 5 SEGMENT INFORMATION

Annual Report 2020 118 119 Annual Report 2020 000 111 980 842 ’ 2019 5,244 2,234 54,308 24,952 37,689 37,988 15,026 179,374 RMB

— — — in 2020 (note 5). 000 720 ” ’ 2020 7,362 1,071 2,778 (1,847) (1,312) 16,373 25,145 RMB Revenue “

YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU (CONTINUED) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES a gain on liquidation of approximately RMB37,689,000. in 2020 (2019: RMB37,988,000 Municipal Bureau of Commerce and RMB6,460,000 from the Wuhan Municipal Bureau of Commerce received from the Guangzhou Municipal Bureau of Commerce). facilities. Handling income from toll fee collection (note d) Handling income from toll fee collection Management service income (note d) Income from service area and gas station b) Gain on liquidation of a subsidiary (note Government subsidy (note c) Others (note d) (note 16) Fair value (loss)/gain on investment properties Gain on disposal of property, plant and equipment damages Compensation for expressways and bridges Compensation from government (note a) (d) The income from service area and gas station and other toll operating income are reclassified to (b) Co. Limited, resulting in In November 2019, the Group had completed the voluntary liquidation of a subsidiary, Shaanxi Jinxiu Transport (c) Guangzhou the from received RMB7,162,000 of subsidy government related non-assets one-off an represented mainly amount The Notes: (a) The amount mainly represented compensation from government on requisition of land and demolishment of plants and other greening There are no differences from the last annual consolidated financial statements in the basis of segmentation of segmentation statements in the basis consolidated financial from the last annual There are no differences income for the reclassification of certain other of segment profit or loss except or in the basis of measurement from toll roads operations as detailed above. All major operating entities are domiciled in the PRC. All revenues of the Group from external customers are are of the Group from external customers entities are domiciled in the PRC. All revenues All major operating geographic no Thus, PRC. the in located are Group the of assets the of most Besides, PRC. the in generated information is presented. in time. roads operations is recognised at a point Revenue relating to toll 6 AND LOSSES - NET OTHER INCOME, GAINS 5 SEGMENT INFORMATION of of ” 000 000 ’ ’ 2019 2019 2,924 5,787 24,309 14,949 17,278 11,141 96,780 18,864 11,210 48,625 640,588 331,841 104,177 253,142 331,841 RMB RMB

000 000 ’ ’ 2020 2020 3,300 3,143 6,251 15,074 14,572 29,890 32,222 16,053 10,187 949,918 251,676 320,039 320,039 139,151 102,257 RMB RMB

general and administrative expenses and administrative general “ and ” cost of services “ emoluments) ’ s remuneration ’ Toll highways and bridges maintenance expenses Toll highways and bridges operating expenses Auditor – Audit services – Non-audit services Legal and professional fee Amortisation of intangible operating rights (note 13) Amortisation of intangible Depreciation of – Property, plant and equipment (note 15(a)) – Right-of-use assets (note 15(b)) Employee benefit expense (note 8) Taxes and surcharges Total employee benefit expense Staff costs (including directors – Wages and salaries – Pension costs (defined contribution plan) (note a) – Social security costs and other benefits – Staff welfare

Employee benefit expenses are included in are benefit expenses Employee the in respectively RMB188,181,000) (2019: RMB174,349,000 and RMB143,660,000) (2019: RMB145,690,000 consolidated income statement. Expenses included in cost of services and general and administrative expenses primarily comprise the following expenses primarily comprise the cost of services and general and administrative Expenses included in items: NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 8 EMPLOYEE BENEFIT EXPENSE 7 NATURE EXPENSES BY

Annual Report 2020 120 121 Annual Report 2020 s ’ 2

2019 1

2020 Number of individuals ) for other Hong Kong employees. The Group ) for other Hong Kong employees. ” YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU MPF Scheme “ (CONTINUED) relevant income as defined in the Hong Kong Mandatory Provident Fund in the Hong Kong Mandatory Provident Fund relevant income as defined ’ s Governments. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES ’ s contribution to a retirement benefit scheme of RMB85,000 (2019: RMB162,000). s contribution to a retirement benefit scheme of RMB85,000 ’ Emolument bands (in HK dollar) HKD2,000,001 – HKD2,500,000 emoluments are reflected in the analysis shown in note 38. The emoluments payable to the remaining one (2019: two) individual(s) two) individual(s) (2019: the remaining one to payable The emoluments 38. analysis shown in note emoluments are reflected in the RMB3,609,000), which include(s) salaries of RMB595,000 (2019: RMB1,150,000), during the year amounted to RMB1,853,000 (2019: (2019: RMB68,000 of benefits other of value money estimated RMB2,110,000), (2019: RMB1,105,000 of bonuses discretionary RMB187,000) and employer The emoluments fell within the following bands: Provincial or Municipal People were payable to the fund during the year. Nil). Contributions totalling RMB6,251,000 (2019: RMB18,864,000) MPF Scheme contributions are at 5% of the employees MPF Scheme contributions per employee per month. The employees also contribute a maximum of HKD1,500 (equivalent to RMB1,301) Schemes Ordinance up to The than HKD7,100 per month (equivalent to RMB6,158). the MPF Scheme if their relevant income is more a corresponding amount to benefits once they are paid. and immediately vested in the employees as accrued MPF contributions are fully three) directors whose The five individuals whose emoluments were the highest in the Group for the year include four (2019: defined contribution retirement plans organised by the respective in the PRC are required to participate in Subsidiaries of the Company 31 December 2020 (2019: Nil). No forfeited contribution was utilised during the year (2019: There was no forfeited contribution as at (b) Five highest paid individuals Notes: (a) ( also participates in the Mandatory Provident Fund Scheme The Group 8 EXPENSE EMPLOYEE BENEFIT 000 ’ (976) 2019 5,932 6,700 (3,035) (6,142) (9,742) (6,676) (6,918) (5,035) (5,128) (1,155) 28,168 40,800 (22,921) (67,727) (411,217) (275,762) RMB

— — — 000 ’ (975) (191) 2020 2,732 (7,364) (4,143) (6,389) 23,627 26,359 (78,819) (67,087) (15,719) (10,287) (805,757) (614,783) RMB

– Lease liabilities (note 15(b)) – Others Exchange loss on bank borrowings Net other exchange loss Finance costs – Bank facility fees – Loan from a joint venture – Loans from non-controlling interests of certain subsidiaries – Loan from a fellow subsidiary – Notes payable (note 29) – Corporate bonds (note 30) Finance income Interest expenses: – Bank borrowings – Other borrowing Bank interest income non-current receivables Interest income on other Others NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 9 FINANCE INCOME/(COSTS)

Annual Report 2020 122 123 Annual Report 2020 000 ’ 2019 12,920 (95,916) 388,398 292,482 305,402 RMB

— 000 ’ 2020 56,275 221,810 221,810 278,085 RMB

s subsidiaries and associates in the PRC at a s subsidiaries and associates in the PRC at YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU ’ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES s subsidiaries, associates and joint venture in the PRC in accordance with the Corporate with the Corporate and joint venture in the PRC in accordance s subsidiaries, associates ’ ), a subsidiary of the Group, has been recognised as an eligible entity in 2019 to enjoy three entity in 2019 to enjoy three Group, has been recognised as an eligible ), a subsidiary of the ” preferential tax treatment of income tax, at a preferential income tax rate of 15%, started from at a preferential income tax rate of 15%, started from preferential tax treatment of income tax, ’ GNSR Deferred income tax (note 28) Current income tax income tax PRC enterprise enterprise income tax (note b) Refund of PRC “

recognised in respect of withholding tax on the unremitted earnings of certain entities in the PRC, as theserecognised in respect of withholding tax the PRC. earnings are expected to be reinvested in tax treatment of income tax, at a preferential income tax rate of 15%, started from 2013 to 2030. tax treatment of income tax, at a preferential a rate of 5% or 10%. During the year, withholding income tax is subject to withholding income tax at certain of the Group was provided for undistributed profits of rate of 5% or 10% (2019: 5% or 10%). 2020 is 25% (2019: 25%). Guangzhou North Second Ring Transport Technology Company Limited Transport Technology Company Limited 25%). Guangzhou North Second Ring 2020 is 25% (2019: ( years income tax at 25% for 2018, the Group had recognised the tax 2018. Since GNSR had already settled the ended 31 December 2019. Guangxi Yuexiu Cangyu Expresswayrefund of RMB95,916,000 during the year has been recognised as an eligible entity to enjoy preferentialCompany Limited, a subsidiary of the Group, Group had no assessable income subject to Hong Kong profits tax during the year (2019: Nil). income subject to Hong Kong profits Group had no assessable of the Group December 31 ended year the for rate tax income principal applicable The China. of Law Tax Income 2020, deferred tax liabilities of RMB85,863,000 (2019: RMB58,712,000) was not As at 31 December (c) income statement represents: The amount of income tax charged to the consolidated 1 January 2008 addition, dividend distribution out of profit of foreign-invested enterprises earned after In (a) (a) the as statements financial consolidated the in made been has tax profits Kong Hong for provision No (b) on the profits PRC enterprises income tax was provided the year ended 31 December 2020, During 10 INCOME TAX EXPENSE 000 (479) ’ 2019 (7,151) (1,912) 38,493 34,726 56,640 (95,916) (88,739) 305,402 387,306 (106,305) (262,484) RMB 1,900,445 1,549,222

(Continued) — — 000 ’ 2020 (3,731) (3,105) 64,929 29,054 (73,328) (67,822) (56,533) 124,749 278,085 682,421 558,066 139,517 RMB

preferential tax treatment of income tax respectively, at a preferential tax treatment of income tax respectively, ’ and eighteen years ’ (CONTINUED) s profit before income tax less share of results of associates and a joint venture and a joint venture tax less share of results of associates s profit before income ’ preferential income tax rate of 15%. assets of approximately benefit through future taxable profits is probable. The Group did not recognise deferred income tax (2019: RMB976,069,000 approximately to amounting losses unused of respect in RMB193,621,000) (2019: RMB244,017,000 be expired in 1 year and RMB774,484,000). Unused tax losses of approximately RMB160,454,000 (2019: RMB297,411,000) will the remaining unused tax losses will be expired prior to 2025. Income tax expense Utilisation of previously unrecognised tax losses Utilisation of previously unrecognised tax Over provision in the prior year b) Refund of PRC enterprise income tax (note of subsidiaries Withholding tax on undistributed profits and associates Calculated at a tax rate of 25% (2019: 25%) Income not subject to tax Expenses not deductible for tax purposes treatment (note (i)) Profit of subsidiaries with preferential tax Tax losses not recognised (note (ii)) Profit before income tax Profit before income Less: share of results of associates Less: share of result of a joint venture Notes: (i) of the Group enjoy three years Two subsidiaries (ii) Deferred income tax assets are recognised for tax losses carried forward to the extent that the realisation of the related tax

The tax on the Group principal applicable tax rate as follows: amount that would arise using the differs from the theoretical (c) represents: to the consolidated income statement The amount of income tax charged NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 10 INCOME TAX EXPENSE

Annual Report 2020 124 125 Annual Report 2020 000 ’ 2019 2019 0.6799 271,042 314,484 585,526 RMB 1,137,590 1,673,162

— 000 ’ 2020 2020 97,706 97,706 0.0959 160,491 RMB 1,673,162

YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 000) ’ 000) ’ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES Weighted average number of ordinary shares in issue ( Weighted average number Basic and diluted earnings per share (RMB) Profit attributable to shareholders of the Company (RMB Profit attributable to Interim, paid, nil (2019: HKD0.18 equivalent to Interim, paid, nil (2019: HKD0.18 equivalent approximately RMB0.16) per share approximately RMB0.06 Final, proposed, of HKD0.07 equivalent to per share (2019: HKD0.21 equivalent to approximately RMB0.19) The final dividend was proposed after the balance sheet date and has not been recognised as a liability at the The final dividend was proposed after the balance sheet date.

The diluted earnings per share for the year ended 31 December 2020 equals to the basic earnings per share as share per earnings basic the to equals 2020 December 31 ended year the for share per earnings diluted The in issue during the year (2019: Nil). there are no potential dilutive ordinary shares Basic and diluted earnings per share are calculated by dividing the profit attributable to shareholders of the the of shareholders to attributable profit the dividing by calculated are share per earnings diluted and Basic in issue during the year. average number of ordinary shares Company by the weighted 12 DIVIDENDS 11 EARNINGS PER SHARE 000 ’ 37,713 249,072 293,753 (640,588) (949,918) RMB (4,861,762) (5,811,680) 17,419,156 15,303,768 32,369,121 37,230,883 32,369,121 32,369,121 31,712,956 37,524,636 31,712,956

s bank borrowings. ’ Cost Accumulated amortisation and impairment loss Net book amount Transfer Amortisation Closing net book amount At 31 December 2019 Net book amount Year ended 31 December 2019 Opening net book amount Additions Acquisition of subsidiaries (note 35) Closing net book amount At 31 December 2020 Cost Accumulated amortisation and impairment loss Year ended 31 December 2020 Year ended 31 December Opening net book amount Additions Amortisation statement. RMB27,889,899,000 (2019: At 31 December 2020, toll highway operating rights with net book amount of RMB28,326,021,000) were pledged to secure the Group Amortisation of intangible operating rights is included in the cost of services in the consolidated income in the consolidated income Amortisation of intangible operating rights is included in the cost of services

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 13 RIGHTS INTANGIBLE OPERATING

Annual Report 2020 126 127 Annual Report 2020 000 ’ 2019 632,619 RMB

000 ’ 2020 632,619 RMB

) including the operations of Guangzhou ) including the operations ” YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU CGUs “ s six cash-generating units ( s six cash-generating ’ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES At 1 January and at 31 December At 1 January and at recoverable amounts to fall below the carrying amounts of the respective CGUs. recoverable amounts to fall below the carrying Management determined the above key assumptions and considerations based on historical records, historical records, on based and considerations assumptions key Management determined the above are factors external and internal Both development. market the for expectations its and performance past where appropriate. be obtained flow growth will on traffic studies traffic independent professional considered, 7.5% to 13%. The specific risks underlying the toll highways industry Discount rates adopted are ranging from reasonably possible change in a key assumption would not cause the are incorporated in the calculations. A rates ranged from 0% to 32% (excluding the growth rates in the year of performing significant repair and the growth rates in the year of performing significant repair and rates ranged from 0% to 32% (excluding practice. maintenance), which is similar to industry growth, vehicle types traffic included estimated in the calculations Key assumptions and considerations used and discount rate. Toll fee charging rates of the expressways or of the toll expressways and highway operation government authorities in the PRC. highways were regulated by the relevant Northern Second Ring Expressway, Guangxi Cangyu Expressway, Henan Weixu Expressway, Hubei Han-Xiao Han-Xiao Henan Weixu Expressway, Hubei Expressway, Guangxi Cangyu Expressway, Northern Second Ring Expressway. Expressway and Hubei Suiyuenan Highway, Hunan Changzhu cash-generating units are determined based on value-in-use and fair The recoverable amounts of the above These calculations use cash flow projections based on financial budgets value less costs of disposal calculations. operating period of the expressways and the annual traffic growth approved by management covering the to the Group Goodwill is allocated 14 GOODWILL 103 000 ’ (197) Total 3,126 (3,752) (1,066) 52,321 83,297 24,538 52,321 53,099 52,321 18,094 53,099 (92,083) (37,713) (17,278) (16,053) 144,404 156,664 (103,565) RMB

— — — (84) 000 ’ (291) 6,615 4,515 1,349 9,810 2,266 9,810 (1,869) (2,691) Motor 10,526 21,277 10,526 22,163 10,526 (10,751) (12,353) vehicles RMB

2 — 000 ’ (775) 1,777 (3,668) 37,887 55,099 20,023 37,887 40,304 37,887 15,828 40,304 (66,678) (20,668) (14,678) (76,769) (12,636) 104,565 117,073 s bank borrowings (2019: Nil). ’ RMB Furniture, equipment fixtures and

— — — — — 92 000 (715) ’ (172) (710) 3,487 3,487 2,605 3,487 2,605 18,083 21,155 16,990 (14,596) (17,045) (14,385) RMB Buildings

9 — — — — — — (58) (16) (58) (25) (16) 421 479 421 428 380 000 438 421 380 ’ land RMB Leasehold

Net book amount At 31 December 2019 Cost depreciation Accumulated Acquisition of subsidiaries 35) (note Depreciation book amount Closing net Transfer Disposals Year ended 31 December 2019 Opening net book amount Exchange differences Additions Cost Accumulated depreciation Net book amount At 31 December 2020 Closing net book amount Opening net book amount Exchange differences Additions Disposals Depreciation Year ended 31 December 2020 Year ended 31 December Note: As 31 December 2020, no property, plant and equipment were pledged to secure the Group

PROPERTY, PLANT AND EQUIPMENT PROPERTY, PLANT ) a NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 15(

Annual Report 2020 128 129 Annual Report 2020 000 000 350 ’ (976) ’ 2019 2019 10,838 10,528 10,488 (11,141) RMB RMB

000 000 ’ ’ (975) 2020 2020 30,021 30,021 10,511 19,510 (10,187) RMB RMB

YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES Depreciation charge of right-of-use assets (note 9) Interest expense (included in finance costs) Current Non-current Right-of-use assets – Properties Lease liabilities The consolidated income statement includes the following amounts relating to leases: The consolidated income statement includes The additions to the right-of-use assets are related to the renewal of leases during the 2020 financial year. The additions to the right-of-use assets are

The consolidated balance sheet shows the following amounts relating to leases: sheet shows the following amounts The consolidated balance This note provides information for leases where the Group is a lessee: for leases where the Group is This note provides information (iii) The total cash outflow for leases in 2020 was RMB11,472,000 (2019: RMB11,807,000). (ii) Amounts recognised in the consolidated income statement (i) Amounts recognised in the consolidated balance sheet LEASES ) b 15( 000 000 543 842 Other ’ ’ 2019 2019 “ 6,987 38,538 39,923 15,020 17,916 39,923 RMB RMB

(Level 3) 000 000 ’ ’ 2020 2020 6,733 (1,467) (1,312) 14,420 15,991 37,144 39,923 37,144 RMB RMB Fair value measurements using significant unobservable inputs

s investment properties were performed by the valuers, C S Surveyors Surveyors S C valuers, the by performed were properties investment s ’ in consolidated income statement (note 6). in consolidated income statement (note ” s policy is to recognise transfers in/out of fair value hierarchy levels as of the date of the event or of the event or s policy is to recognise transfers in/out of fair value hierarchy levels as of the date ’ At 31 December At 1 January Exchange differences (Note 6) Fair value (loss)/gain – Office units - Hong Kong – Residential units - Hong Kong Recurring fair value measurements Investment properties: – Office units - PRC Description change in circumstances that caused the transfer. There were no transfers between Levels 1, 2 and 3 during the year (2019: Nil). The Group

end of each reporting period by the independent valuers. The revaluation gains or losses is included in end of each reporting period by the independent income, gains and losses – net Independent valuations of the Group the of valuations Independent Limited, to determine the fair value of the investment properties Limited and Vigers Appraisal and Consulting fair value of each investment property is individually determined at the as at 31 December 2020 and 2019. The

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 16 INVESTMENT PROPERTIES

Annual Report 2020 130 131 Annual Report 2020 000 000 352 151 352 130 130 ’ ’ (384) 6,484 6,987 6,987 6,733 RMB RMB - Hong Kong – Hong Kong Residential units

Residential units — — 000 000 392 ’ ’ (842) (842) (1,083) 17,524 17,916 17,916 15,991 RMB RMB Office units Office units - Hong Kong - Hong Kong

— — 000 000 490 490 ’ ’ (600) (600) Year ended 31 December 2019 - PRC - PRC YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU Year ended 31 December 2020 Year ended 31 December 14,530 15,020 15,020 14,420 RMB RMB Office units Office units

(CONTINUED) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES Closing balance year as Total changes in unrealised gains for the included in profit or loss for assets held the year at the end of Opening balance Net gains from fair value adjustment Exchange difference Total changes in unrealised (losses)/gains for the year as included in profit or loss for assets held at the end of the year Opening balance fair value adjustment Net (losses)/gains from Exchange difference Closing balance

3) unobservable inputs (Level using significant Fair value measurements 16 INVESTMENT PROPERTIES inputs to fair value the fair value the fair value the fair value The higher the The higher the The higher the unobservable foot, the higher foot, the higher price per square price per square price per square Relationship of adjusted average adjusted average adjusted average meter, the higher inputs Range of square foot square foot RMB6,607 – square meter RMB10,000 – RMB10,804 – RMB7,246 per unobservable RMB15,110 per RMB11,000 per foot foot meter inputs Unobservable price per square price per square price per square Adjusted average Adjusted average Adjusted average (CONTINUED) approach approach approach Valuation techniques Direct comparison Direct comparison Direct comparison s finance department reports directly to the senior management. At each year reports directly to the senior management. s finance department 000) ’ ’ 2020 6,733 14,420 15,991 (RMB (2019: 6,987) (2019: 15,020) Fair value at 31 December (2019: 17,916) s finance department reviews the valuation performed by the independent valuer for financial the independent valuer for financial reviews the valuation performed by s finance department s investment properties at 31 December 2020 and 2019 were valued by independent professionally valued by independent professionally at 31 December 2020 and 2019 were s investment properties ’ ’ Residential units - Hong Kong Office units - Hong Kong Description Office units - PRC in key attributes such as property size. The most significant input into this valuation approach is price per square in key attributes such as property size. The meter/foot. in included are properties investment all and year the during valuation techniques in changes no were There 2020. level 3 fair value hierarchy as at 31 December For office and residential units in the PRC and Hong Kong, the valuation was determined using the direct and Hong Kong, the valuation was determined using the direct For office and residential units in the PRC method is based on comparing the property to be valued directly with comparison approach. Direct comparison for differences adjusted are proximity and close in transacted recently have which properties, comparable other The Group The Group reporting purposes. major inputs to the independent valuation report; assesses property end, the finance department verifies all the with discussions holds and report; valuation year prior the to compared when movements valuation independent valuer. The Group and have recent experience in relevant professional qualifications and hold recognised qualified valuers who current use For all investment properties, their of the investment properties valued. the locations and segments and best use. equates to the highest NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU techniques Valuation of the Group Valuation processes 16 INVESTMENT PROPERTIES

Annual Report 2020 132 133 Annual Report 2020 000 ’ 2019 201,646 206,383 409,361 RMB 1,217,701 1,020,967 31 December

000 ’ 2020 204,646 200,076 392,992 RMB 1,347,254 1,080,545 Non-controlling interests 31 December

40% 30% 40% 10% 33% 2019 YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 31 December

40% 30% 40% 10% 33% 2020 31 December Percentage of equity interests held by non-controlling interests

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES shennan Expressway ’ Hancai Expressway Company Limited of Hubei Province Company Limited Tianjin Jinfu Expressway Company Limited Hubei A Development Company Limited material non-controlling interests Guangzhou North Second Ring Transport Technology Company Limited Hubei Suiyuenan Expressway Name of subsidiary with

RMB3,057,095,000). Details of the principal subsidiaries of the Company are set out in note 39. subsidiaries of the Company are set out Details of the principal were RMB3,228,854,000 (2019: 2020, the total non-controlling interests As at 31 December (a) Subsidiaries (b) interests Material non-controlling 17 SUBSIDIARIES

Net assets Net 385,991 3,442,167 3,601,820 3,042,145 3,366,029 1,229,172 1,190,885 2,078,152 2,000,756 378,491

Total net non-current assets non-current net Total 323,652 3,252,788 3,328,442 2,623,867 2,464,140 2,157,382 2,292,218 4,484,414 4,751,784 328,513

Liabilities (133,765) (132,958) (2,808,786) (2,606,455) (547,352) (518,838) (1,691,460) (1,481,279) (2,723,104) (2,391,566)

Assets 456,610 6,061,574 5,934,897 3,171,219 2,982,978 3,848,842 3,773,497 7,207,518 7,143,350 462,278

Non-current

Total net current assets/(liabilities) current net Total 62,339 189,379 273,378 418,278 901,889 (928,210) (1,101,333) (2,406,262) (2,751,028) 49,978

Liabilities (26,740) (169,096) (111,478) (221,437) (245,283) (956,800) (1,122,516) (2,529,003) (2,883,138) (9,772)

Assets 89,079 358,475 384,856 639,715 1,147,172 28,590 21,183 122,741 132,110 59,750

Current

000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB ’ ’ ’ ’ ’ ’ ’ ’ ’ ’

2019 2020 2019 2020 2020 2019 2020 2019 2020 2019

Company Limited Company Limited Company Limited Company Limited of Hubei Province Hubei of

Suiyuenan Expressway Suiyuenan Company Technology Development Company Expressway Limited Company

Second Ring Transport Transport Ring Second Hubei Expressway Jinfu Tianjin Expressway Hancai

Guangzhou North North Guangzhou shennan A Hubei

’

Summarised balance sheet balance Summarised

Group. the to material interests non-controlling has that subsidiary each for information financial summarised the are below out Set

(b) Material non-controlling interests non-controlling Material (b) (Continued)

17 SUBSIDIARIES 17 (CONTINUED) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU

Annual Report 2020 134 135

Annual Report 2020

Note: The income from service area and gas station and other toll operating income are reclassified to to reclassified are income operating toll other and station gas and area service from income The Note: in 2020 (note 5). (note 2020 in Revenue ” “

non-controlling interests non-controlling 343,172 72,086 8,414 — — — — — — —

Dividends declared to declared Dividends

non-controlling interests non-controlling 3,000 96,660 59,579 357,005 201,640 (379) (12,635) (1,699) (7,740) 5,866

YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU

attributable to attributable

Total comprehensive income/(loss) comprehensive Total

comprehensive income/(loss) comprehensive 7,500 322,199 198,596 892,513 504,100 (1,149) (38,287) (16,986) (77,396) 14,665

Profit/(loss) and total and Profit/(loss)

Income tax (expense)/credit tax Income (2,647) (107,171) (66,554) (35,008) (70,761) 2,195 11,009 (2,675) (35,129) (4,960)

Profit/(loss) before income tax income before Profit/(loss) 10,147 429,370 265,150 927,521 574,861 (3,344) (49,296) (14,311) (42,267) 19,625

Revenue (note) Revenue 687,671 531,033 1,217,130 915,738 350,969 92,668 74,504 31,631 181,617 57,292

000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB ’ ’ ’ ’ ’ ’ ’ ’ ’ ’

2019 2020 2019 2020 2020 2019 2020 2019 2020 2019

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES

Company Limited Company Limited Limited Limited Company of Hubei Province Hubei of

Expressway Company Technology Development Company Company Development Expressway Jinfu Tianjin Limited Company

Hubei Suiyuenan Suiyuenan Hubei Transport Ring Expressway Expressway Expressway Hancai

Second North shennan shennan A Hubei ’

Guangzhou

Summarised income statement income Summarised

(b) Material non-controlling interests non-controlling Material (b) (Continued)

17 SUBSIDIARIES 17 (CONTINUED)

The information above is stated before inter-company eliminations. inter-company before stated is above information The

at 31 December 31 at 61,637 120,580 51,544 606,687 1,115,007 5,001 823 12,294 12,604 34,177

Cash and cash equivalents cash and Cash

at 1 January 1 at 34,177 277,373 120,580 457,926 606,687 37,039 5,001 47,247 12,294 68,596

Cash and cash equivalents cash and Cash

cash and cash equivalents cash and cash 27,460 (156,793) (69,036) 148,761 508,320 (32,038) (4,178) (34,953) 310 (34,419)

Net increase/(decrease) in increase/(decrease) Net

financing activities financing (832,598) (370,622) (857,930) (180,216) (49,268) (157,586) (85,547) (271,129) (47,034) —

Net cash used in used cash Net

investing activities investing (15,344) (22,376) (170,686) (76,877) (50,554) (701) (5,846) (4) (20,413) (37,921)

Net cash used in used cash Net

from operating activities operating from 42,804 698,181 472,272 1,083,568 739,090 17,931 159,254 50,598 291,852 50,536

Net cash generated cash Net

Income tax refunded tax Income 95,916 — — — — — — — — —

Income tax paid tax Income (5,116) (73,877) (68,443) (79,725) (135,799) (7,749) — — — —

from operations from 47,920 772,058 540,715 1,067,377 874,889 17,931 159,254 50,598 291,852 58,285

Cash generated Cash

operating activities operating

Cash flows from flows Cash

000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB ’ ’ ’ ’ ’ ’ ’ ’ ’ ’

2019 2020 2019 2020 2020 2019 2020 2019 2020 2019

Limited Limited Company Company Limited Company Limited Company of Hubei Province Hubei of

Ring Transport Technology Technology Transport Ring Expressway Company Company Expressway Expressway Development Development Expressway Expressway Jinfu Tianjin Limited Company

Guangzhou North Second Second North Guangzhou Hubei Suiyuenan Suiyuenan Hubei shennan shennan A Hubei Hancai Expressway Expressway Hancai ’

Summarised cash flows cash Summarised

(b) Material non-controlling interests non-controlling Material (b) (Continued)

17 SUBSIDIARIES 17 (CONTINUED) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU

Annual Report 2020 136 137 Annual Report 2020 000 000 ’ ’ 2019 2019 88,739 13,147 (27,520) (71,956) (40,966) (78,629) 454,272 116,259 471,055 582,950 332,168 253,539 (119,659) (103,304) RMB RMB

in 2020 (note 5). 000 000 ” ’ ’ 2020 2020 17,753 75,254 56,533 (18,721) (39,983) (35,579) (88,623) (52,355) 442,428 213,878 161,523 471,055 487,605 (122,101) RMB RMB Revenue “

YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES s investment in a joint venture are as below: s investment in a joint ’ s interest in the joint venture. ’ At 31 December Share of results for the year Share of results for the – profit before income tax – income tax expense Dividends At 1 January Profit before income tax Income tax expense Profit and total comprehensive income Revenue (note) Depreciation and amortisation Interest income Interest expense Other expenses - net Note: The income from service area and gas station and other toll operating income are reclassified to Group joint venture is set out below: Summarised financial information of the The joint venture, Guangzhou Western Second Ring Expressway Co., Ltd., is a private company and there is no The joint venture, Guangzhou Western Second There are no contingent commitments and liabilities relating to the quoted market price available for its shares. Movements in the Group 18 VENTURE INVESTMENT IN A JOINT 000 ’ 2019 73,247 (22,978) 472,780 546,027 (834,978) (186,668) (186,668) (812,000) RMB 1,345,872 1,821,491

000 ’ 2020 (21,104) 171,837 433,453 605,290 (783,104) (158,863) (158,863) (762,000) RMB 1,393,157 1,729,834

(CONTINUED) s share of those amounts) adjusted for differences in accounting policies between the Group and the s share of those amounts) adjusted for differences ’ Net assets Non-current Total non-current assets Financial liabilities Other liabilities Total non-current liabilities Total current assets Trade payables and other current liabilities Total current liabilities Current Cash and cash equivalents Other current assets joint venture. The information above reflects the amounts presented in the financial statements of the joint venture (and not The information above reflects the amounts the Group

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 18 VENTURE INVESTMENT IN A JOINT

Annual Report 2020 138 139 Annual Report 2020 s s ’ — 000 000 ’ ’ 2019 2019 (66,304) 253,539 471,055 471,055 328,788 262,484 RMB (205,585) (337,709) RMB 1,297,918 1,345,872 1,474,846 1,399,621

000 000 ’ ’ 2020 2020 (7,290) 86,117 67,822 75,960 (18,295) 161,523 487,605 487,605 (114,238) RMB RMB 1,399,621 1,345,872 1,393,157 1,536,113

YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU (CONTINUED) s interests. ’ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES s investment in associates are as below: ’ s joint venture are set out in note 39. ’ s share of net assets ’ Carrying amount of investment in the joint venture Carrying amount of investment in the Profit for the year Dividends paid Closing net assets at 31 December Group Opening net assets at 1 January Opening net assets Capital injection Dividends At 31 December Share of results for the year – profit before income tax – income tax expense At 1 January There are no contingent liabilities relating to the Group Port Company Limited to Guangzhou Pazhou RMB75,960,000 The Group completed the capital injection of during the year ended 31 December 2020. Movements in the Group Details of the Group Reconciliation of the summarised financial information presented to the carrying amount of the Group to the carrying amount of the summarised financial information presented Reconciliation of the venture is set out below: investment in the joint 19 IN ASSOCIATES INVESTMENTS 18 VENTURE INVESTMENT IN A JOINT

differences in accounting policies between the Group and the associates. the and Group the between policies accounting in differences

s share of those amounts) adjusted for for adjusted amounts) those of share s Group the not (and associates the of statements financial the in presented amounts the reflects above information The ’

Note: The income from service area and gas station and other toll operating income are reclassified to to reclassified are income operating toll other and station gas and area service from income The Note: in 2020 (note 5). (note 2020 in Revenue ” “

Net assets Net 601,395 751,899 2,700,241 2,667,192 1,255,763 1,331,112 10,000 163,745 226,642 285,352

(105,814) (111,184) (3,954,633) (3,540,074) (636,434) (496,486) (146) (75,752) (65,444) —

other current liabilities current other (100,891) (108,935) (180,916) (171,255) (277,511) (170,453) (146) (29,406) (23,884) —

Trade payables and payables Trade

Non-current liabilities Non-current (4,923) (2,249) (3,773,717) (3,368,819) (358,923) (326,033) (46,346) (41,560) — —

Liabilities:

707,209 863,083 6,654,874 6,207,266 1,892,197 1,827,598 10,000 163,891 302,394 350,796

Current assets Current 150,416 462,305 145,272 99,630 119,746 152,885 1,501 32,904 34,212 116,745

Non-current assets Non-current 556,793 400,778 6,509,602 6,107,636 1,772,451 1,674,713 8,499 130,987 268,182 234,051

Assets:

the associates the (119,425) (7,290) (181,113) (37,171) — — — — — —

Dividends declared from declared Dividends

Capital injection Capital 168,800 — — — — — — — — —

comprehensive income/(loss) comprehensive 75,349 104,663 (33,049) 528,728 58,710 444,647 180,504 (15,055) 107,245 —

Profit/(loss) and total and Profit/(loss)

Revenue (note) Revenue 468,141 837,016 664,674 1,037,097 135,918 760,764 574,218 204,077 — —

000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB ’ ’ ’ ’ ’ ’ ’ ’ ’ ’

2020 2019 2020 2019 2020 2019 2020 2019 2020 2019

Bridge Co., Ltd. Co., Bridge Development Co., Ltd. Co., Development Bridge Co., Ltd. Co., Bridge Ltd. Co., Highway Super Pazhou Port Co., Ltd. Co., Port Pazhou

Guangdong Humen Humen Guangdong Highway Qinglian Guangdong Shantou Bay Bay Shantou Guangdong Northring Guangzhou Guangzhou

Guangdong

Summarised financial information of the investments in associates that are material to the Group is set out below: out set is Group the to material are that associates in investments the of information financial Summarised

December 2020. Comparative figures are provided for information. for provided are figures Comparative 2020. December

ng the year ended 31 31 ended year the ng duri RMB75,960,000 of injection capital the after Group the to material considered been has Ltd. Co., Port Pazhou Guangzhou The

19 INVESTMENTS IN ASSOCIATES IN INVESTMENTS 19 (CONTINUED) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU

Annual Report 2020 140 141

Annual Report 2020

Details of the Group the of Details s associates are set out in note 39. note in out set are associates s ’

the associates the 146,155 182,728 632,364 624,554 442,535 463,466 4,500 73,685 174,067 191,680

investments in investments

Carrying amount of amount Carrying

YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU

Provision for impairment losses impairment for Provision (5,702) (5,702) — — — — — — — —

Goodwill 93,684 93,684 106,073 106,073 — — — — — —

s share of net assets net of share s Group 146,155 182,728 638,066 630,256 348,851 369,782 4,500 73,685 67,994 85,607 ’

31 December 31 601,395 751,899 2,700,241 2,667,192 1,255,763 1,331,112 10,000 163,745 226,642 285,352

Closing net assets at assets net Closing

Dividends (491,479) (30,000) (829,610) (123,903) — — — — — —

Capital injection Capital 168,800 — — — — — — — — —

Profit/(loss) for the year the for Profit/(loss) 75,349 104,663 (33,049) 528,728 58,710 444,647 180,504 (15,055) 107,245 —

1 January 1 1,255,763 2,595,578 2,700,241 1,556,645 226,642 648,227 601,395 10,000 10,000 243,300 Opening net assets at assets net Opening

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES

000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB ’ ’ ’ ’ ’ ’ ’ ’ ’ ’

2020 2019 2020 2019 2020 2019 2020 2019 2020 2019

Bridge Co., Ltd. Co., Bridge Development Co., Ltd. Co., Development Bridge Co., Ltd. Co., Bridge Ltd. Co., Highway Super Port Co., Ltd. Co., Port

Guangdong Humen Humen Guangdong Highway Qinglian Guangdong Shantou Bay Bay Shantou Guangdong Northring Guangzhou Pazhou Guangzhou

Guangdong

is set out below: out set is

Reconciliation of the summarised financial information presented to the carrying amount of the Group the of amount carrying the to presented information financial summarised the of Reconciliation s investments in associates that are material to the Group Group the to material are that associates in investments s ’

19 INVESTMENTS IN ASSOCIATES IN INVESTMENTS 19 (CONTINUED)

— — 000 ’ 2019 in the in the 1,697 ” RMB

— 000 ’ 2020 (13,365) (10,677) RMB Finance income/(costs) “

s toll operating rights of Xiang Jiang s toll operating rights of Xiang Jiang ’ Non-current liabilities contracts – cash flow hedges Foreign exchange forward Current liabilities flow hedges Foreign exchange forward contracts – cash Non-current assets contracts – cash flow hedges Foreign exchange forward million will be received more than 1 year) from the balance sheet date according to the repayment schedule, schedule, the repayment to balance sheet date according million will be received more than 1 year) from the which has been included in other receivables, deposits and prepayments. RMB26.3 million (2019: The fair value of consideration receivable (all in current portion) of approximately remaining balance of RMB51.8 million, including current and non-current portion) is estimated by discounting is and 4.63%) (2019: 4.35% of rate interest current applicable the at million) RMB54.6 (2019: million RMB27.1 categorised as level 2 under the fair value hierarchy. Bridge II in 2009. balance of the consideration receivable (all in current portion) is As at 31 December 2020, the total remaining will which and non-current portion) current including RMB50.4 million, (2019: million RMB25.9 approximately the end of its concessionary period, i.e. 30 November 2021. As at 31 be settled by 2 half yearly instalments until (2019: approximately RMB22.9 December 2020, approximately RMB25.9 million will be received within 1 year consolidated income statement (note 9). receivable, consideration of value present the of portion non-current the represent receivables Non-current to the disposal of the Group discounted at a rate of 5.32% in relation The notional principal amounts of the outstanding foreign exchange forward contracts designated as cash outstanding foreign exchange forward contracts designated as cash The notional principal amounts of the HKD500,000,000 (2019: HKD 500,000,000). The foreign exchange flow hedges as at 31 December 2020 were as highly effective hedging instruments for the HKD denominated forward contracts have been assessed borrowings of the Group. instruments are included in Changes in fair values of derivative financial

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 21 RECEIVABLES OTHER NON-CURRENT 20 INSTRUMENTS DERIVATIVE FINANCIAL

Annual Report 2020 142 143 Annual Report 2020 000 ’ 2019 175,028 160,255 335,283 RMB

000 ’ 2020 204,361 157,678 362,039 RMB

YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES s revenue is generally settled in cash and it usually does not maintain any account balances owing. s revenue is generally settled in cash and ’ Trade receivables and prepayments Other receivables, deposits The trade receivables represented amounts due from local transport departments which collected the toll due from local transport departments which collected the toll The trade receivables represented amounts the implementation of unified toll collection policy on expressways and revenue for all operating entities due to is normally within a month. highways in China. The settlement period receivables and deposits approximated their fair values and were The carrying amounts of trade and other other receivables are measured at amortised cost. mainly denominated in RMB. The trade and As at 31 December 2020, trade receivables were all aged below 30 days (2019: 30 days) by invoice date. As at 31 December 2020, trade receivables The Group PREPAYMENTS 22 TRADE AND OTHER RECEIVABLES, DEPOSITS AND AND RECEIVABLES, DEPOSITS TRADE AND OTHER 22 28 70 000 000 000 ’ ’ ’ 2019 2019 13,843 692,158 742,904 147,322 RMB RMB RMB 1,435,062 1,396,592 1,421,121 1,435,062

2019 1 — 000 000 ’ ’ 2020 2020 shares 21,775 29,087 RMB RMB 1,486,916 1,494,229 1,516,004 1,466,792 1,516,004 Number of 1,673,162,295

000 ’ 147,322 RMB

2020 shares Number of 1,673,162,295

Cash and cash equivalents Maximum exposure to credit risk Cash at bank and in hand Cash at bank and in with original maturities of Short-term bank deposits less than three months Ordinary shares of each RMB0.08805 Issued and fully paid: EUR dollars Renminbi HK dollars US dollars

Cash and cash equivalents are denominated in the following currencies: Cash and cash equivalents are denominated

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 24 SHARE CAPITAL 23 CASH AND CASH EQUIVALENTS

Annual Report 2020 144 145

Annual Report 2020

5,098,799

(note 12) (note 97,706

YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU proposed dividend Final 2020

Retained profits Retained 5,001,093

Representing:

Balance at 31 December 2020 December 31 at Balance 4,260 400,383 404,153 1,501,716 2,375,743 10,277,569 (65,735) 558,250 5,098,799

– 2019 Final dividend (note 12) (note dividend Final 2019 – (314,484) (314,484) — — — — — — —

Dividends

Transfers (171,021) 171,021 — — — — — — —

in hedging reserve hedging in 6,637 6,637 — — — — — — —

Cash flow hedges - movement movement - hedges flow Cash

Currency translation differences translation Currency 592 592 — — — — — — —

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES

Profit for the year the for Profit 160,491 160,491 — — — — — — —

Balance at 1 January 2020 January 1 at Balance 403,561 1,501,716 2,375,743 5,423,813 (2,377) 229,362 10,424,333 (65,735) 558,250

000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB ’ ’ ’ ’ ’ ’ ’ ’ ’

reserve (a)) (note Premium profits reserve (b)) (note Total reserve (c)) (note

fluctuation fluctuation reserve Share Retained Retained Hedging reserves interests interests reserve

Exchange Exchange Capital revaluation revaluation Statutory controlling controlling

Asset Asset with non- with

Transaction Transaction 25 RESERVES 25

5,423,813

2019 Final dividend proposed (note 12) (note proposed dividend Final 2019 314,484

Retained profits Retained 5,109,329

Representing:

Balance at 31 December 2019 December 31 at Balance (2,377) 229,362 403,561 1,501,716 2,375,743 10,424,333 (65,735) 558,250 5,423,813

– 2019 Interim dividend (note 12) (note dividend Interim 2019 – (271,042) (271,042) — — — — — — —

– 2018 Final dividend dividend Final 2018 – (346,223) (346,223) — — — — — — —

Dividends

Transfers 66,486 (66,486) — — — — — — —

differences upon liquidation of a subsidiary a of liquidation upon differences (18,000) (18,000) — — — — — — —

Release of currency translation translation currency of Release

in hedging reserve hedging in (2,377) (2,377) — — — — — — —

Cash flow hedges - movement movement - hedges flow Cash

Currency translation differences translation Currency (164) (164) — — — — — — —

Profit for the year the for Profit 1,137,590 1,137,590 — — — — — — —

Balance at 1 January 2019 January 1 at Balance 421,725 1,501,716 2,375,743 4,969,974 162,876 9,924,549 (65,735) 558,250 —

000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB ’ ’ ’ ’ ’ ’ ’ ’ ’

reserve (a)) (note Premium profits reserve (b)) (note Total reserve (c)) (note

fluctuation fluctuation reserve Share Retained Retained Hedging reserves interests interests reserve

Exchange Exchange Capital revaluation revaluation Statutory controlling controlling

Asset Asset with non- with

Transaction Transaction

25 RESERVES 25 (CONTINUED) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU

Annual Report 2020 146 147 Annual Report 2020 000 000 ’ ’ 2019 2019 71,914 700,000 147,000 RMB RMB 1,305,148 1,147,101 6,200,272 6,786,778 (1,305,148) 14,520,385 15,439,299 14,134,151 15,439,299

000 000 ’ ’ 2020 2020 77,668 200,000 147,000 977,300 (977,300) RMB RMB 1,983,398 5,434,512 4,903,733 12,874,275 13,298,943 12,321,643 13,298,943

s subsidiaries, associates and a joint venture established s subsidiaries, associates and YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU ’ s further acquisition of an additional 20% equity interest to to interest equity 20% additional an of acquisition further s ’ s borrowings were repayable as follows: ’ s Republic of China on Joint Ventures Using Chinese and Foreign Investment, upon approval Ventures Using Chinese and Foreign Investment, s Republic of China on Joint ’ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES (CONTINUED) Within one year Between one and two years Between two and five years Later than five years expansion and general reserve funds, at rates determined by their respective Boards of Directors. According to the Regulations for the of Directors. According to the Regulations for the Boards funds, at rates determined by their respective expansion and general reserve of The People Implementation of the Law fund increasing capital while the enterprise expansion reserve funds may be used for making up losses and by the Board, the general may be used for increasing capital. Group the to prior 2007 in associate an as Group the by held Limited become a subsidiary. nominal value of the shares issued by Kiu Fung Limited, a subsidiary of the Company, as consideration of the acquisition in 1996. issued by Kiu Fung Limited, a subsidiary of the Company, nominal value of the shares in the PRC, the Company by regulations the PRC. As stipulated joint venture in profits (after offsetting prior year losses) to the enterprise required to appropriate a portion of their after-tax and operated in the PRC are

Total non-current borrowings Other borrowing Loan from a joint venture subsidiaries Loans from non-controlling interests of certain Total borrowings under current liabilities Less: Amounts due within one year as shown Bank borrowings (a) As at 31 December 2020, the Group

(c) (c) in GNSR Expressway Company The asset revaluation reserve represents the fair value gain on revaluation of the 40% equity interest Notes: (a) capital of the subsidiaries acquired and the the nominal value of the shares/registered Capital reserve represents the difference between (b) a and associates subsidiaries, operating the by appropriated funds reserve general and expansion enterprise represent reserves Statutory 26 BORROWINGS 25 RESERVES 000 ’ 2019 (5,907) 91,916 22,309 287,513 373,522 (351,213) RMB s Bank of China China of Bank s ’

— 000 ’ 2020 for the year ended 31 December 22,309 ” (18,353) 373,522 355,169 (332,860) RMB

Other income, gains and losses - net “ for the year ended 31 December 2020 due to change in presentation of reportable segment. For ” Revenue “ (CONTINUED) (note a) ” Revenue “ RMB419,810,000 (2019: RMB445,531,000) which are denominated in HKD. RMB419,810,000 (2019: RMB445,531,000) flows discounted at a rate of 4.35% (2019: 4.35%) per annum. flows discounted at a rate of 4.35% (2019: is due within one year. except for loan of RMB4,318,000 which repayable in 2022. RMB500,000,000 was repaid during the year ended 31 December 2020. was repaid during the year repayable in 2022. RMB500,000,000 is repayable in 2021 and 2022. Benchmark Interest Rates minus 10% and their fair values which are calculated based on cash amounts of these interest-free loans approximates rights (note 13) of the Group. All bank borrowings are interest bearing at rates ranging from 3.35% bearing at rates ranging from 3.35% the Group. All bank borrowings are interest rights (note 13) of at 31 interest rate of these borrowings to 5.00%) per annum. The effective to 4.90% (2019: 4.04% (2019: 4.37%). December 2020 is 4.08% 2019 while reclassified as details, please refer to note 5. Credited to At 31 December Less: non-current portion Current portion At 1 January Acquisition of subsidiaries (note 35) Note: (a) The income from service area and gas station was classified as to 23 years). Contract liabilities and deferred revenue are related to fees received in advance from contractors relating to are related to fees received in advance from contractors relating to Contract liabilities and deferred revenue along the toll highway for the remaining 18 to 22 years (2019: 19 operation of service areas and petrol stations one and two years Loans from non-controlling interests of certain subsidiaries are repayable between (f) approximately borrowings are denominated in RMB (2019: RMB), except for bank borrowings of The (d) (d) People of rate annual an at bearing interest unsecured, is venture joint a from Loan (e) carrying The interest-free. and unsecured are subsidiaries certain of interests non-controlling from Loans (b) operating are secured by intangible borrowings of RMB7,523,749,000 (2019: RMB9,173,789,000) Bank (c) and annum per 6.7%) (2019: 6.4% of rate a at bearing interest unsecured, is borrowing other The NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 27 LIABILITIES AND DEFERRED REVENUE CONTRACT 26 BORROWINGS

Annual Report 2020 148 149 Annual Report 2020 000 000 ’ ’ 2019 2019 12,920 (28,290) 119,596 (129,896) (158,186) RMB RMB 3,402,484 3,244,298 3,282,888 2,086,455 1,144,923 3,244,298

— 000 000 ’ ’ 2020 2020 56,275 (64,485) (28,290) (92,775) 130,138 RMB RMB 3,393,348 3,300,573 3,244,298 3,263,210 3,300,573

YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES Deferred income tax liabilities (net) Deferred income tax liabilities: 12 months Deferred income tax liabilities to be recovered after 12 months Deferred income tax liabilities to be recovered within Deferred income tax assets: Deferred income tax months Deferred income tax assets to be recovered after 12 months Deferred income tax assets to be recovered within 12 At 1 January Acquisition of subsidiaries (note 35) (note 10) Charged to consolidated income statement At 31 December

The gross movement on the deferred income tax account is as follows: The gross movement on the deferred income

Deferred income tax is calculated in full on temporary differences under the liability method using the applicable under the liability method using the is calculated in full on temporary differences Deferred income tax income tax rate. is as follow: tax assets and deferred tax liabilities The analysis of the deferred 28 DEFERRED INCOME TAX

000 ’ Total (3,001) (6,135) 50,762 (42,195) RMB 3,393,348 2,086,455 1,307,462 3,402,484 3,402,484

— — — 000 104 131 123 254 254 ’ (150) gain on RMB Fair value properties investment

— — tax 000 ’ rights 56,743 11,164 54,603 712,227 589,717 655,484 655,484 RMB operating Accelerated amortisation of intangible

— — 000 ’ (60,604) (88,648) RMB 2,569,582 1,422,536 1,296,298 2,658,230 2,658,230 subsidiaries arising from toll highway on interest in acquisition of

Fair value gain

— 000 ’ (6,135) tax on 76,435 39,071 53,516 29,054 56,640 53,516 (42,195) RMB profits of subsidiaries Withholding undistributed

and associates (CONTINUED)

— — — — — for 000 ’ tax on 35,000 35,000 35,000 35,000 RMB dividend distributed Withholding reinvestment

income statement Transferred to current income tax expenses for dividends declared At 31 December 2019 At 31 December 2020 At 1 January 2019 Acquisition of subsidiaries (note 35) Charged/(credited) to consolidated At 1 January 2020 Charged/(credited) to consolidated income statement Transferred to current income tax expenses for dividends declared

The movement in deferred income tax assets and liabilities during the year, without taking into consideration during the year, without taking into consideration income tax assets and liabilities The movement in deferred as follows: within the same tax jurisdiction, is the offsetting of balances NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU tax liabilities Deferred income 28 DEFERRED INCOME TAX

Annual Report 2020 150 151 Annual Report 2020 ). ). ” ”

— 000 ’ Total 4,353 65,411 (92,775) (162,539) (158,186) (158,186) RMB 2019 Phase I I Phase 2019 “ ) were recognised

”

2020 Phase I Notes — — — 2020 Phase II Notes “ 000 “ ’ Notes “ (71,467) (71,467) (71,467) (71,467) RMB Tax losses

— 000 ’ YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 4,353 rights 65,411 (91,072) (86,719) (86,719) (21,308) RMB operating accounting Accelerated amortisation of intangible

(CONTINUED) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES ). The 2019 Phase I Notes were issued at 100% of the aggregate nominal amount with interest payable ). The 2019 Phase I Notes were issued at ” At 31 December 2019 At 31 December 2020 At 1 January 2019 Acquisition of subsidiaries (note 35) Charged to consolidated income statement At 1 January 2020 Charged to consolidated income statement 2020. initially at fair values. Note issuance costs directly attributable were capitalised and amortised over the estimated initially at fair values. Note issuance costs directly attributable were capitalised and term of the Notes using the effective interest method. includes the interest chargedThe effective interest rate for the Notes is 3.73% (2019: 3.77%) per annum, which notes. The Group recognised on the Notes as well as amortisation of the capitalized cost on issuance of the December 31 ended the year for Notes on the RMB3,035,000) (2019: RMB78,819,000 of expense interest On 17 August 2020, the Group issued 2020 Phase II Medium Term Notes with coupon rate of 3.54% per coupon rate of 3.54% per On 17 August 2020, the Group issued 2020 Phase II Medium Term Notes with (the annum due August 2023 for an aggregate principal amount of RMB500,000,000 with interest payable annually. The 2020 Phase II Notes were issued at 100% of the aggregate nominal amount The 2019 Phase I Notes, 2020 Phase I Notes and 2020 Phase II Notes (Collectively, Notes annually. per 3.47% of rate coupon with Notes Term Medium I Phase 2020 issued Group the 2020, January 13 On (the annum due January 2023 for an aggregate principal amount of RMB1,000,000,000 with interest payable annually. The 2020 Phase I Notes were issued at 100% of the aggregate nominal amount On 2 December 2019, the Group issued 2019 Phase I Medium Term Notes with coupon rate of 3.58% per 2019 Phase I Medium Term Notes with coupon rate of 3.58% per On 2 December 2019, the Group issued (the RMB1,000,000,000 of amount principal an aggregate for 2022 December due annum

29 NOTES PAYABLE tax assets Deferred income 28 DEFERRED INCOME TAX Corporate Corporate “ ) on 16 March ) on 16 March ” CSRC “ ) to qualified investors in investors qualified to ) ” ) to qualified investors in the PRC ) to qualified investors ” Second Phase 2016 Corporate Bonds Corporate 2016 Phase Second “ First Phase 2016 Corporate Bonds First Phase 2016 Corporate “ ) were recognised initially at fair values. Debt issuance costs incurred which were directly attributable directly attributable ) were recognised initially at fair values. Debt issuance costs incurred which were ” shall be entitled to adjust the coupon rate and has the right to redeem the relevant corporate bonds, and shall be entitled to adjust the coupon rate and has the right to redeem the relevant at the end of the the investors shall be entitled to sell back the relevant corporate bonds to the Company, fifth year. be entitled to adjust the coupon rate and has the right to redeem the relevant corporate bonds, and the be entitled to adjust the coupon rate and relevant corporate bonds to the Company, at the end of the investors shall be entitled to sell back the third year; and third year; and and has the right to redeem the relevant corporate bonds, and shall be entitled to adjust the coupon rate the relevant corporate bonds to the Company, at the end of the the investors shall be entitled to sell back fifth year. be entitled to adjust the coupon rate and has the right to redeem the relevant corporate bonds, and the be entitled to adjust the coupon rate and relevant corporate bonds to the Company, at the end of the investors shall be entitled to sell back the The effective interest rate for the Corporate Bonds is 3.55% per annum, which includes the interest charged on The effective interest rate for the Corporate Bonds is 3.55% per annum, which includes recognised interest expense the Corporate Bonds as well as amortisation of the debt issuance cost. The Group ended 31 December 2020. of RMB67,087,000 (2019: RMB67,727,000) on the Corporate Bonds for the year corporate bonds of Second Phase 2016 Corporate Bonds from 2.90% to 3.60%, and part of the investors sold corporate bonds of Second Phase 2016 Corporate Bonds from 2.90% to 3.60%, back the relevant corporate bonds of RMB80,000,000 to the Company. (collectively, Bonds Corporate 2016 Phase Second and Bonds Corporate 2016 Phase First The Bonds effective interest method. were capitalised and amortised over the estimated term of the facilities using the ii. ii. with coupon rate of 3.18% per annum; the Company seven-year corporate bonds of RMB800,000,000 coupon rate of the five-year During the year ended 31 December 2019, the Company has adjusted the i. shall Company the per annum; 2.90% of coupon rate with RMB200,000,000 of corporate bonds five-year During the year ended 31 December 2019, the Company adjusted the coupon rate of the five-year corporate During the year ended 31 December 2019, from 2.85% to 4.10%, and part of the investors sold back the bonds of First Phase 2016 Corporate Bonds to the Company. relevant corporate bonds of RMB10,000,000 ( bonds corporate 2016 of phase second The Second Phase 2016 Corporate Bonds were issued in two tranches: the PRC was drawn on 28 October 2016. ii. ii. the Company corporate bonds of RMB700,000,000 with coupon rate of 3.38% per annum; seven-year The first phase of 2016 corporate bonds ( The first phase of 2016 were issued in two tranches: 2016. First Phase 2016 Corporate Bonds was drawn on 22 March i. shall Company the per annum; 2.85% of coupon rate with RMB300,000,000 of corporate bonds five-year The Company received the Approval Document Zheng Jian Xu Ke No. [2016] 522 and the Approval Document Ke No. [2016] 522 and the Approval the Approval Document Zheng Jian Xu The Company received Regulatory Commission ( [2016] 1530 from the China Securities Zheng Jian Xu Ke No. for a public issue of corporate application of the Company respectively, approving the 2016 and 8 July 2016 to and RMB2,000,000,000 respectively principal amount of up to RMB1,000,000,000 bonds in an aggregated in the PRC. the qualified investors NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 30 CORPORATE BONDS

Annual Report 2020 152 153 Annual Report 2020 — 000 000 ’ ’ 2019 2019 47,303 36,245 47,303 11,058 808,655 259,080 RMB RMB 1,115,038

000 000 ’ ’ 2020 2020 8,073 1,412 63,747 73,232 73,232 789,828 356,302 RMB RMB 1,219,362

YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES Trade payables charges Other payables and accrued accruals and payables Construction related 0 - 30 days 31 - 90 days Over 90 days Trade and other payables and accrued charges are mainly denominated in RMB except for other payables of charges are mainly denominated in RMB except for other payables of Trade and other payables and accrued RMB8.6 million) which were denominated in HKD and the carrying approximately RMB20.1 million (2019: amounts approximated their fair values. The ageing analysis of trade payables by invoice date is as follows: The ageing analysis of trade payables by

31 CHARGES AND ACCRUED TRADE AND OTHER PAYABLES 000 (348) ’ (842) (111) 2019 (5,907) 41,172 17,278 11,141 (27,729) (22,705) (37,689) 640,588 (105,250) RMB 2,429,237 1,919,639 2,544,097

— 000 ’ (178) (720) 2020 1,312 (2,298) 27,729 27,629 16,053 10,187 (27,985) (18,353) 949,918 RMB 2,320,758 1,337,464 2,295,861

6 6 13 16 27 Note 15(a) 15(b)

Cash generated from operations – decrease/(increase) in amount due from an associate charges – increase/(decrease) in trade and other payables and accrued – decrease in amounts due to a joint venture – decrease in amounts due to holding companies Gain on liquidation of a subsidiary Contract liabilities and deferred income changes Operating cash flows before working capital Changes in working capital: – (increase)/decrease in trade and other receivables, deposits and prepayments Depreciation of – property, plant and equipment – right-of-use assets Fair value losses/(gains) on investment properties Gain on disposal of property, plant and equipment Operating profit operating rights Amortisation of intangible

(a) operations: profit to cash generated from Reconciliation of operating NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 32 OF CASH FLOWS STATEMENT NOTES TO THE CONSOLIDATED

Annual Report 2020 154 155 Annual Report 2020

— 000 ’ Total 19,740 46,738 (26,998) (642,863) RMB 2,264,828 (2,907,691) 17,731,090 18,354,213

— — 000 350 ’ (984) (984) Lease 30,655 20,144 19,510 (10,511) RMB liabilities (non-current)

— — — 000 ’ Lease 10,511 10,511 10,511 10,488 (10,488) (10,488) (current) RMB liabilities

— — — — — 000 ’ 1,598 Bonds RMB 1,907,554 Corporate (1,907,554) (1,909,152) (non-current)

YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU

— — — — — — 000 ’ bonds (current) RMB 1,909,152 1,909,152 1,909,152 Corporate

— — — 000 ’ 2,624 2,624 Notes 996,522 payable RMB 2,492,974 1,493,828 1,493,828 (non-current)

000 ’ 11,861 (26,998) 771,000 (992,437) (820,071) (977,300) RMB (1,591,071) 12,321,643 14,134,151 Borrowings (non-current)

— — — 000 ’ 977,300 977,300 977,300 (current) RMB 1,305,148 (1,305,148) (1,305,148) Borrowings NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES Total non-cash changes Balance as at 31 December 2020 Other non-cash movements Total changes from financing activities cash flows Non-cash changes Foreign exchange adjustments Transfers Proceeds from borrowings and issuance of Notes Repayment of borrowings, corporate bonds and lease liabilities Balance as at 31 December 2019 Changes from financing activities cash flows

(CONTINUED) (b) arising from financing activities: Reconciliation of liabilities 32 FLOWS STATEMENT OF CASH THE CONSOLIDATED NOTES TO

— 000 ’ Total 5,081 9,742 21,669 RMB 7,077,403 7,040,911 3,688,943 7,587,867 6,501,930 (2,812,987) 18,354,213

— — — — 976 350 000 ’ Lease 12,157 21,669 (11,807) (11,807) (10,488) liabilities RMB (Continued) (non-current)

— — — — — — — — 000 ’ Lease 10,488 10,488 10,488 (current) liabilities RMB

— — — — — — 000 ’ 1,932 Bonds 410,000 408,068 RMB Corporate 1,907,554 1,497,554 (non-current)

— — — — — — 000 ’ bonds (current) (90,000) (90,000) 498,068 (408,068) (408,068) RMB Corporate

— — — — — — 92 92 000 ’ Notes payable 996,522 996,430 996,430 RMB (non-current)

— 000 ’ 2,081 9,742 RMB 5,747,586 7,040,911 5,505,500 3,305,569 5,080,996 (1,305,148) (2,199,931) Borrowings 14,134,151 (non-current)

— — — — — 000 ’ (current) 511,249 (511,249) (511,249) RMB 1,305,148 1,305,148 1,305,148 Borrowings

Balance as at 31 December 2019 Changes in accounting policy Other non-cash movements Total non-cash changes Acquisition of subsidiaries Transfers Changes from financing activities cash flows Total changes from financing activities cash flows Non-cash changes Foreign exchange adjustments Proceeds from borrowings and issuance of Notes Repayment of borrowings, corporate bonds and lease liabilities Balance as at 31 December 2018 (CONTINUED) (b) arising from financing activities: Reconciliation of liabilities NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 32 FLOWS STATEMENT OF CASH THE CONSOLIDATED NOTES TO

Annual Report 2020 156 157 Annual Report 2020 000 000 000 ’ ’ ’ 2019 2019 2019 6,264 3,056 11,377 17,641 47,947 51,003 298,276 (298,276) RMB RMB RMB

— 000 000 000 ’ ’ ’ 2020 2020 2020 6,075 7,400 13,475 159,706 159,706 307,235 (307,235) RMB RMB RMB

YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES s future aggregate minimum lease receipts under non-cancellable operating leases of premises of leases operating non-cancellable under receipts lease minimum aggregate future s ’ Lease receipts Property, plant and equipment Contracted but not provided for Upgrade and construction of toll expressways under and construction of port concession arrangements Within one year One year to five years

The Group The are as follows: and service areas along the expressways Construction income under service concession upgrade services Construction income service concession upgrade services Construction costs under obligation for construction income under service concession upgrade of RMB69,210,000 will be recognised as obligation for construction income under construction income from 2020 onwards. (a) Lease receipt commitments Construction income is recognised over time. performance to unsatisfied transaction price allocated the that December 2020, the Group expects As at 31 CONCESSION UPGRADE SERVICES CONCESSION the under provided services upgrade and construction the with associated income/(costs) construction The for the year are as follows: service concessions recognised (b) Capital commitments 34 COMMITMENTS 33 CONSTRUCTION INCOME/(COSTS) UNDER SERVICE UNDER SERVICE INCOME/(COSTS) CONSTRUCTION 33

— 000 ), and ’ ” RMB 5,975,356 (1,107,000) (4,868,356) (Guangzhou (Guangzhou ). The Group ). The Group ”

GZYX “ Acquired Group “ (Yuexiu 高速公路有限公司 (Yuexiu 湖北) ) and the toll roads are all currently ” s loan owed by YXHB to GZYXE from 20 20 from GZYXE to s loan owed by YXHB ’ ), (ii) 38.5% of the equity interest in Hancai, ), (ii) 38.5% of the equity ” completion date Hancai “ “ ), a wholly-owned subsidiary of the ultimate holding holding ultimate the of subsidiary a wholly-owned ), ” ), a company which holds the intangible operating rights of the holds the intangible operating rights of ), a company which ” GZYXE “ YXHB “ e Expressway and 28.5% of equity interest of 湖北省漢蔡高速公路有限公司 e Expressway and 28.5% ’ e Expressway. The operating periods of these expressways are from 18 to 23 years. e Expressway. The operating periods of these ’ s loan together with the interest accrued ’ (Guangzhou Yue Xiu Enterprises Holdings Limited) ( (Guangzhou Yue Xiu 廣州越秀集團有限公司 Fair value of a shareholder Total cash consideration assets acquired Less: Determined fair value of net identifiable economies of scale. Details of the acquisition are as follows: This transaction was completed on 8 November 2019 (the This transaction was completed on 8 November under full operations. has obtained intangible operating rights of Daguangnan Expressway, As a result of the acquisition, the Group Hancai Expressway and Han in the market and reduce costs for operating toll roads through The Group is expected to increase its presence (Hancai Expressway Company Limited of Hubei Province) ( (Hancai Expressway (together as the operating right in the Hancai Expressway which holds the intangible entire shareholder the title of and in and (iii) all the rights, benefits loan facility of RMB4,655 million at 6.5% per annum granted by the March 2019 under the unsecured 5-year thereon, at total consideration of approximately RMB5,975 million. GZYXE to YXHB with the interest accrued On 12 September 2019, the Group entered into an agreement with 廣州越秀企業集團有限公司 with agreement an into entered Group the 2019, September 12 On ( Limited) (Holding) Enterprises Xiu Yue company, interest in 越秀( to acquire (i) 100% of the equity has conditionally agreed Limited) ( (Hubei) Expressway Company Han Daguangnan Expressway, NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 35 BUSINESS COMBINATIONS

Annual Report 2020 158 159 Annual Report 2020 000 000 ’ ’ 3,126 133,772 133,772 176,981 162,539 (287,513) (615,520) RMB RMB 1,107,000 1,722,520 (5,975,356) (5,841,584) (5,421,780) (7,040,911) (1,307,462) 15,303,768

YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU (CONTINUED) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES Cash paid Cash and bank balances acquired Deferred income tax assets (note 28) Total net identifiable assets acquired Non-controlling interests equity interest acquired by the Group Net identifiable assets attributable to the Trade and other receivables, deposits and prepayments Trade and other receivables, deferred revenue (note 27) Contract liabilities and Trade and other payables and accrued charges Borrowings (note a) Deferred income tax liabilities (note 28) Cash and cash equivalents rights (note 13) Intangible operating (note 15(a)) Property, plant and equipment Acquisition-related costs of RMB14,512,000 have been charged to administrative expenses in the consolidated Acquisition-related costs of RMB14,512,000 have been charged to administrative income statement for the year ended 31 December 2019. was approximately The amount of the non-controlling interest in the Acquired Group recognised assets of the Acquired Group RMB615,520,000 and it represented the share of proportionate of net identifiable as of the completion date.

Note a: repaid in fully which was to a fellow subsidiary of the Group of approximately RMB850,000,000 Borrowings acquired included a loan due November 2019. equivalents in respect of acquisition of subsidiaries: Analysis of net outflow of cash and cash Determined fair value amounts of the identifiable assets acquired and liabilities assumed were as follows: amounts of the identifiable assets acquired Determined fair value 35 BUSINESS COMBINATIONS A fellow subsidiary A fellow subsidiary A fellow subsidiary A joint venture An associate An associate An associate An associate An associate An associate of a fellow subsidiary Relationship with the Company A wholly-owned subsidiary of ultimate holding company A fellow subsidiary A fellow subsidiary A fellow subsidiary ) ) ) ” ” ” ) ” ) ) ) ” ” ” GZYXE “ Northring ) “ ” ) ” Pazhou “ Yue Xiu ) “ Humen Bridge ” “ YX Jones Lang LaSalle Yuexiu Property “ “ ) Chong Hing Insurance ” “ Artform “ Chong Hing Bank “ ) ” ) ” Yue Xiu IFC “ (Guangzhou Yue Xiu Holdings Limited) Holdings Limited) (Guangzhou Yue Xiu s Directors regard 廣州越秀集團股份有限公司 ’ ) ” ) (incorporated in the PRC) as its ultimate holding company and the Guangzhou City Government PRC) as its ultimate holding company and ) (incorporated in the ” GWSR Qinglian Highway Shantou Bay Bridge “ “ “ GZYX Guangdong Shantou Bay Bridge Co., Ltd. Guangdong Shantou Bay Bridge Co., Ltd. ( Ltd. ( Guangzhou Northring Super Highway Co., ( Guangzhou Pazhou Port Company Limited Guangzhou Yue Xiu City Construction International Finance ( Center Co., Ltd. Guangzhou Yue Xiu Enterprises (Holding) Limited ( Guangzhou Yue Xiu Enterprises (Holding) Co., Ltd. Guangzhou Western Second Ring Expressway ( Guangdong Humen Bridge Co., Ltd. ( Co., Ltd. Guangdong Qinglian Highway Development ( Yuexiu Property Company Limited ( Artform Investment Limited ( Chong Hing Bank Limited ( Chong Hing Insurance Co., Ltd ( Lang LaSalle Guangzhou Yuexiu City Construction Jones Property Management Co., Ltd. ( Significant related parties Yue Xiu Enterprises (Holdings) Limited ( “ transactions during the year, and their relationship with the Company as at 31 December 2020: year, and their relationship with the Company transactions during the ( party. as its ultimate controlling significant of related parties, with whom the Group has forth below summarises the names The table set (a) Related parties The Company NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 36 RELATED PARTY TRANSACTIONS

Annual Report 2020 160 161 Annual Report 2020 000 101 371 300 175 ’ 2019 5,128 1,140 1,677 9,222 2,234 71,955 22,921 37,171 181,113 119,425 RMB

— — — 72 000 149 ’ 2020 6,389 2,231 1,160 1,722 2,778 7,290 39,983 27,896 13,593 RMB

YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU (CONTINUED) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES Interest income from Chong Hing Bank Bridge, Pazhou, Management service income from Humen Qinglian Highway, Northring and GWSR Dividend income from Humen Bridge Dividend income from Shantou Bay Bridge Dividend income from Northring Dividend income from GWSR Interest expense to GZYXE Interest expense to GWSR Insurance expenses to Chong Hing Insurance Guarantee fee to GZYXE Xiu IFC Addition of right-of-use assets from Yue fees to Yuexiu Property Administrative service fee to Yue Xiu Property Building management Management Ltd LaSalle Building management fee to YX Jones Lang (xii) (xiii) (xiv) (vi) (vii) (viii) (ix) (x) (xi) (ii) (iii) (iv) (v) (i) contracts with Yue Xiu to purchase HKD in the amount of HKD200 million and HKD300 million million and HKD300 million HKD200 of amount the purchase HKD in to contracts with Yue Xiu will be on 29 March 2021 and 29 March 2022 respectively. respectively with RMB. The settlement date During the year ended 31 December 2019, the Group entered into two foreign exchange forward 2019, the Group entered into two foreign exchange forward During the year ended 31 December (b) parties Transactions with related 36 RELATED PARTY TRANSACTIONS 000 000 ’ ’ (331) 2019 2019 8,915 (2,490) (1,611) (9,617) (1,221) 27,729 (71,914) 796,336 (147,000) RMB RMB

— — 000 000 ’ ’ (153) (342) 2020 2020 (1,611) 10,092 (73,350) (29,153) 649,933 (147,000) RMB RMB

(CONTINUED) Amount due to a non-controlling interest of a subsidiary Amount due to a non-controlling interest Amount due from an associate subsidiary Lease liabilities to an associate of a fellow Lease liabilities to a fellow subsidiary in a fellow subsidiary Bank balance deposited companies Amounts due to holding venture Amount due to a joint Loan from a joint venture subsidiaries Loans from non-controlling interests of certain Salaries and other short-term benefits (viii) (ix) (iii) (iv) (v) (vi) (vii) (i) (ii)

(d) compensation Key management (c) with related parties Balances NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 36 RELATED PARTY TRANSACTIONS

Annual Report 2020 162 163 Annual Report 2020 000 ’ 2019 8,653 2,823 1,697 317,278 147,322 RMB 3,878,420 4,204,351 4,854,147 5,001,469 5,928,601 5,933,121 10,137,472 31 December

— 000 ’ 2020 3,845 2,162 75,869 147,322 RMB 4,735,853 4,883,175 5,928,601 5,930,763 11,543,635 11,623,349 17,554,112 31 December

YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES Equity attributable to the shareholders of the Company Equity attributable to the shareholders Share capital Reserves (note (ii)) Total equity Total assets EQUITY Current assets Amounts due from subsidiaries Deposits and prepayments Cash and cash equivalents ASSETS Non-current assets Property, plant and equipment Investments in subsidiaries Derivative financial instruments FLOWS AND RESERVE MOVEMENT OF THE COMPANY RESERVE MOVEMENT FLOWS AND sheet of the Company Note (i) Balance 37 OF CASH STATEMENT, STATEMENT BALANCE SHEET, INCOME

— — — — 000 ’ 2019 66,802 35,000 861,598 996,522 RMB 3,800,674 1,268,527 1,335,329 5,136,003 1,907,554 10,137,472 31 December

— 000 ’ 2020 96,143 10,677 35,000 13,365 165,032 RMB 3,661,459 1,909,152 6,828,474 9,009,478 1,120,120 2,492,974 12,670,937 17,554,112 31 December

(Continued) Total liabilities Total equity and liabilities Borrowings Corporate bonds Amounts due to subsidiaries Other payables and accrued charges Derivative financial instruments Corporate bonds Deferred income tax liabilities Derivative financial instruments Current liabilities LIABILITIES Non-current liabilities Borrowings Notes payable

CASH FLOWS AND RESERVE MOVEMENT OF THE COMPANY THE OF MOVEMENT RESERVE AND FLOWS CASH (CONTINUED) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU sheet of the Company Note (i) Balance 37 BALANCE SHEET, INCOME STATEMENT, STATEMENT OF STATEMENT OF INCOME STATEMENT, BALANCE SHEET, 37

Annual Report 2020 164 165 Annual Report 2020

000 ’ Total 6,637 (2,377) 265,348 189,553 (346,223) (271,042) (314,484) RMB 4,854,147 5,208,441 4,735,853 4,854,147

— — 000 ’ 97,706 profits 919,217 604,733 314,484 919,217 265,348 696,580 794,286 794,286 919,217 189,553 (346,223) (271,042) (314,484) RMB Retained 1,271,134

— — — — — — 000 ’ 4,260 6,637 (2,377) (2,377) (2,377) reserve Hedging RMB YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU

— — — — — — — 000 ’ (note) surplus RMB 1,561,564 1,561,564 1,561,564 1,561,564 Contributed

— — — — — — — 000 ’ Share RMB premium 2,375,743 2,375,743 2,375,743 2,375,743

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES Retained profits proposed 2019 Final dividend 12) (note Representing: At 31 December 2019 2018 Final dividend dividend (note 12) 2019 Interim At 1 January 2019 Profit for the year Cash flow hedges –movement in hedging reserve Dividends: Retained profits 2020 Final dividend proposed 12) (note Representing: 2019 Final dividend (note 12) At 31 December 2020 in hedging reserve Dividends: At 1 January 2020 Profit for the year Cash flow hedges –movement Note: Company in exchange for all the issued The contributed surplus represents the difference between the nominal value of the shares issued by the November 30 at the Company as by acquired subsidiaries underlying the of assets of net value Limited and the Fung of Kiu ordinary shares to the shareholders. 1996. Under the Companies Act 1981 of Bermuda (as amended), the contributed surplus is distributable

CASH FLOWS AND RESERVE MOVEMENT OF THE COMPANY THE OF MOVEMENT RESERVE AND FLOWS CASH (CONTINUED) movement of the Company Note (ii) Reserve 37 BALANCE SHEET, INCOME STATEMENT, STATEMENT OF STATEMENT OF INCOME STATEMENT, BALANCE SHEET, 37

— 000 000 702 ’ ’ 000 2019 2019 ’ 2,924 5,787 2019 15,800 26,221 400,000 30,823 RMB RMB (54,987) 265,348 400,000 345,013 265,348 (110,488) RMB

— 000 000 697 ’ ’ 000 2020 2020 ’ 2,924 5,787 2,325 2020 18,066 400,000 RMB RMB (31,858) 189,553 400,000 368,142 109,439 189,553 (288,028) RMB

(c) (c) (a) (b) Note

emoluments) ’ s remuneration ’ – Audit services – Non-audit services Legal and professional fee Employee benefit expense (including directors Depreciation of property, plant and equipment Auditor Dividend income

Finance costs Profit before income tax Income tax expense Profit for the year Other income, gains and losses - net Other income, gains General and administrative expenses Operating profit Finance income (b) Expenses by nature Notes: (a) Other income, gains and losses - net

CASH FLOWS AND RESERVE MOVEMENT OF THE COMPANY THE OF MOVEMENT RESERVE AND FLOWS CASH (CONTINUED) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU statement of the Company Note (iii) Income 37 BALANCE SHEET, INCOME STATEMENT, STATEMENT OF STATEMENT OF INCOME STATEMENT, BALANCE SHEET, 37

Annual Report 2020 166 167 Annual Report 2020

— — 000 ’ 2019 3,008 6,700 (5,033) (3,035) (2,626) (9,742) 21,115 30,823 (22,325) (67,727) (110,488) RMB

— — — 000 ’ 2020 6,754 (4,143) (4,977) (45,909) (78,819) (67,087) (87,093) 102,685 109,439 (288,028) RMB

YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU (Continued) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES – Others Exchange loss on bank borrowings Net other exchange loss Finance costs Finance income Interest expenses: – Bank borrowings – Bank facility fees – Notes payable (note 29) – Corporate bonds (note 30) Bank interest income Intercompany loan interest income Net other exchange gain Others

CASH FLOWS AND RESERVE MOVEMENT OF THE COMPANY THE OF MOVEMENT RESERVE AND FLOWS CASH (CONTINUED) Notes: (Continued) (c) Finance income/(costs) statement of the Company Note (iii) Income 37 BALANCE SHEET, INCOME STATEMENT, STATEMENT OF STATEMENT OF INCOME STATEMENT, BALANCE SHEET, 37

000 702 ’ 2019 3,008 4,097 6,203 (1,414) (2,811) (4,079) (90,000) (84,526) 317,278 946,658 420,000 996,430 320,560 514,679 345,013 345,715 (216,744) (300,000) (299,803) (300,000) (617,265) (195,987) RMB (1,519,417)

— — — (35) 000 697 ’ (853) 2020 6,754 6,719 4,808 (1,968) 75,869 451,000 317,278 368,142 368,839 (314,484) (146,167) (240,556) (100,563) RMB 5,559,962 1,493,828 1,482,209 (7,562,530) (1,729,484)

Net decrease in cash and cash equivalents Cash and cash equivalents at 1 January Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents at 31 December of bank borrowings Repayment corporate bonds Repayment of to shareholders of the Company Dividend paid Interest paid Net cash flows generated from financing activities Net cash flows generated from/(used in) investing activities Net cash flows generated from/(used Cash flows from financing activities Payment of bank facility fees bank borrowings Proceeds from issuance of Notes Proceeds from Cash flows from investing activities Purchase of property, plant and equipment Increase in investment in a subsidiary Interest received Changes in working capital: Decrease in deposits and prepayments (Decrease)/increase in other payables and accrued charges Increase in amounts due from subsidiaries Increase in amounts due to subsidiaries Net cash used in operating activities Cash flows from operating activities Cash flows from operating Operating profit Depreciation of property, plant and equipment changes Operating cash flows before working capital

CASH FLOWS AND RESERVE MOVEMENT OF THE COMPANY THE OF MOVEMENT RESERVE AND FLOWS CASH (CONTINUED) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU of cash flows of the Company Note (iv) Statement 37 BALANCE SHEET, INCOME STATEMENT, STATEMENT OF STATEMENT OF INCOME STATEMENT, BALANCE SHEET, 37

Annual Report 2020 168 169 Annual Report 2020 000 200 265 200 665 ’ Total 2,654 1,858 1,933 6,445 2,982 10,092 RMB

s ’ — — — — — — — — 000 ’ 1,126 1,126 RMB director undertaking in respect of Emoluments its subsidiary other services of the affairs of the Company or the management paid or receivable in connection with

— — — — — — — — — —

000 ’ office paid or RMB accepting receivable as director in respect of Remunerations

s ’ — — — — — —

93 93 000 121 214 ’ RMB Employer a retirement YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU contribution to benefit scheme

s services as a director, ’ — — — — — —

53 53 000 328 381 ’ (note d) of other benefits RMB Estimated

money value — — — — — — — — — —

000 ’ Housing RMB allowance s emoluments

’ — — — —

000 839 ’ 1,215 1,344 4,524 5,363 1,965 (note c) bonuses RMB

Discretionary whether of the Company or its subsidiary undertaking whether of the Company or its subsidiary — — — —

000 568 689 643 443 ’ 2,343 1,775 Salaries RMB Emoluments paid or receivable in respect of person Emoluments paid or receivable in

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES

— — — — —

000 200 265 200 665 665 ’ Fees RMB

and chief executive ’ non-executive directors FUNG Ka Pun LAU Hon Chuen Ambrose CHEUNG Doi Shu Executive director and the Chief executive HE Baiqing Independent Name of directors Executive directors LI Feng CHEN Jing XIE Yanhui (note a)

The remuneration of every director and the chief executive is set out below: every director and the chief executive is The remuneration of 31 December 2020 For the year ended (A) Directors 38 OF DIRECTORS BENEFITS AND INTERESTS

000 389 200 265 200 ’ Total 665 3,001 1,859 5,249 3,001 8,915 RMB

s ’

— — — — — — — — 000 ’ 955 955 director RMB subsidiary undertaking in respect of Emoluments the affairs of other services connection with paid or receivable in the Company or its the management of

— — — — — — — — — — 000 ’ office paid or RMB accepting receivable as director in respect of Remunerations

s ’

— — — — — — (CONTINUED) — — 000 ’ 113 113 benefit scheme RMB (Continued) Employer a retirement

contribution to

— — — — — — — — 000 ’ 348 348 other s services as a director, money ’ (note d) value of benefits RMB Estimated

s financial performance.

’

— — — — — — — — — — 000 ’ Housing RMB allowance s emoluments

’

— — — — — 000 ’ 2,349 1,227 (note c) 3,576 1,021 4,597 bonuses RMB Discretionary

whether of the Company or its subsidiary undertaking whether of the Company or its subsidiary

— — — — 000 389 652 632 ’ 564 Salaries 1,673 2,237 Emoluments paid or receivable in respect of person Emoluments paid or receivable in respect RMB

— — — — — 000 200 265 200 665 665 Fees ’ RMB

and chief executive ’ FUNG Ka Pun LAU Hon Chuen Ambrose CHEUNG Doi Shu HE Baiqing Name of directors Executive directors ZHU Chunxiu (note b) LI Feng CHEN Jing Independent non-executive directors Executive director and the Chief executive (b) Resigned with effect from 22 July 2019. (c) Discretionary bonuses are determined based on the Group (d) Other benefits mainly include provision of accommodation. Notes: (a) Appointed on 28 February 2020.

The remuneration of every director and the chief executive is set out below: every director and the chief executive is The remuneration of December 2019 For the year ended 31 (A) Directors NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 38 OF DIRECTORS BENEFITS AND INTERESTS

Annual Report 2020 170 171 Annual Report 2020

’ s business to which which to business s ’ services were paid or or services were paid ’ (CONTINUED) YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES material interests in transactions, arrangements or contracts material interests in transactions, termination benefits retirement benefits ’ ’ ’ s services (2019: Nil). ’ No significant transactions, arrangements and contracts in relation to the Company the to relation in contracts and arrangements transactions, significant No a director of the Company had a material interest, whether the Company was a party and in which of the year or at any time during the year (2019: Nil). directly or indirectly, subsisted at the end directors, controlled bodies corporate by and connected entities with corporate by and connected entities with directors, controlled bodies such directors their directors, the of favour in dealings other or quasi-loans loans, no are there year, the During entities (2019: Nil). controlled bodies corporate and connected services to or receivable by third parties for making available no consideration was provided During the year, director During the year, no payments or benefits in respect of termination of directors payments or benefits in respect of termination During the year, no nor are any payable (2019: Nil). made, directly or indirectly, to the directors; No retirement benefits were paid to or receivable by the directors in respect of their services as directors in respect of their services as directors were paid to or receivable by the directors No retirement benefits of with the management of the affairs its subsidiaries or other services in connection of the Company and undertaking (2019: Same). the Company or its subsidiary (F) Directors (E) (E) of favour in dealings other and quasi-loans loans, about Information (C) Directors (D) available directors Consideration provided to third parties for making (B) Directors 38 OF DIRECTORS BENEFITS AND INTERESTS Investment holding Guangzhou North Second Ring Transport Technology Co., Limited Investment holding in Tianjin Jinfu Expressway Co., Ltd. Investment holding Investment holding in Guangxi Yuexiu Cangyu Expressway Co., Ltd Development and management of Guangzhou Northern Second Ring Expressway in Guangzhou Investment holding in Guangdong Humen Bridge Co., Ltd. Investment holding Investment holding Principal activities Investment holding in Guangzhou Northring Super Highway Co., Ltd. Investment holding in — 60 100 100 100 100 100 100 100 100 Indirect — — — — — — — — — 100 Direct Percentage of ownership interest held by the Company Issued and US$1.00 each US$1.00 each US$1.00 each RMB1,000,000 RMB65,000,000 1 Ordinary share 1 Ordinary share RMB900,000,000 RMB260,000,000 1 Ordinary share of 1 Ordinary share of RMB2,000,000,000 fully paid up share 50,000 Ordinary shares of capital/registered capital Company PRC, limited liability Company PRC, limited liability Company PRC, limited liability Company British Virgin Islands Hong Kong PRC, limited liability Company PRC, limited liability British Virgin Islands British Virgin Islands Hong Kong Place of incorporation, establishment and operation and type of legal entity Guangzhou Yue Hong Investment Company Limited Information Limited Guangzhou Yue Da Investment Company Limited Company Limited Guangzhou Suiqiao Development Company Limited Guangzhou Yue Peng Grand Speed Limited Guangzhou North Second Ring Transport Technology Choice Tone Limited Famous Kind International Limited Bentfield Limited Company Principal subsidiaries Asian East Worldwide Limited As at 31 December 2020, the Company held shares/interest in the following principal subsidiaries, a joint a joint in the following principal subsidiaries, 2020, the Company held shares/interest As at 31 December venture and associates. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 39 GROUP STRUCTURE

Annual Report 2020 172 173 Annual Report 2020 e Expressway in Hubei ’ Development and management of Han Province Development and management of Changzhu Expressway in Hunan Province Development and management of Cangyu Expressway in Guangxi Development and management of Hancai Expressway in Hubei Province Development and management of Henan Weixu Expressway Development and management of Daguangnan Expressway in Hubei Province Development and management of Han-Xiao Expressway in Hubei Province Development and management of Suiyuenan Expressway in Hubei Province Principal activities Investment holding in Guangdong Qinglian Highway Development Company Limited Investment holding — 67 90 70 100 100 100 100 100 100 Indirect — — — — — — — — — 100 Direct YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU Percentage of ownership interest held by the Company Issued and RMB5,000,000 RMB135,000,000 RMB927,730,000 RMB190,925,000 RMB150,000,000 RMB660,754,500 RMB200,000,000 RMB495,089,000 RMB301,000,000 RMB1,770,000,000 fully paid up share capital/registered capital (CONTINUED) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES PRC, limited liability Company PRC, limited liability Company PRC, limited liability Company Company PRC, limited liability Company PRC, limited liability Company PRC, limited liability Company Company PRC, limited liability Company PRC, limited liability Company PRC, limited liability Place of incorporation, establishment and operation and type of legal entity PRC, limited liability e ’ shennan Expressway ’ Company Limited Hunan Changzhu Expressway Development Company Limited Hubei Suiyuenan Expressway Company Limited Hubei Yue Xiu Han Expressway Hubei Han Xiao Highway Construction and Operations Company Limited Henan Yuexiu Weixu Expressway Company Limited Hubei A Development Company Limited Company Limited Hancai Expressway Company Limited of Hubei Province Guangzhou Yue Xin Investment Company Limited Guangxi Yuexiu Cangyu Expressway Principal subsidiaries Guangzhou Yue Tong Expressway Operations and Management Company Limited Company 39 GROUP STRUCTURE Investment holding Property holding Investment holding in Guangdong Shantou Bay Bridge Company Limited Investment holding in Hubei Han Xiao Highway Construction and Operations Company Limited Development and management of Jinxiong Expressway in Tianjin Investment holding Investment holding Investment holding Principal activities Investment holding Investment holding Investment holding — — 60 100 100 100 100 100 100 100 83.3 Indirect — — — — — — — — — 100 100 Direct Percentage of ownership interest held by the Company Issued and US$1.00 each US$1.00 each US$1.00 each US$1.00 each HKD1.00 each RMB30,000,000 1 Ordinary share 2 Ordinary shares RMB265,200,000 RMB260,000,000 1 Ordinary share of 1 Ordinary share of 1 Ordinary share of RMB4,000,000,000 2 Ordinary shares of fully paid up share 10,000 Ordinary shares of capital/registered capital (CONTINUED) PRC, limited liability Company PRC, limited liability Company Hong Kong PRC, limited liability Company PRC, limited liability Company British Virgin Islands British Virgin Islands British Virgin Islands Hong Kong British Virgin Islands Place of incorporation, establishment and operation and type of legal entity British Virgin Islands Infrastructure Investment Company Limited Yuexiu (Hubei) Expressway Company Limited Industry Development Company Limited Yan Tung Investment Limited Yuexiu (China) Transport Tianjin Jinfu Expressway Company Limited Wuhan Andi Technology Super Praise Ltd. Swift Full Limited Kiu Fung Limited Smart Top Enterprises Limited Principal subsidiaries Ickleton Limited Kam Cheong Limited Company NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU 39 GROUP STRUCTURE

Annual Report 2020 174 175 Annual Report 2020 Principal activities Development and management of Guangzhou Western Second Ring Expressway in Guangzhou 35 Principal activities Development and management of Humen Bridge in Humen Development and management of Qinglian Expressway Development and management of Shantou Bay Bridge in Shantou Development and management of Guangzhou City Northern Ring Road Development and management of Pazhou Port in Guangdong Profit sharing 30 45 24.3 27.78 23.63 (note a) Indirect 33 power Voting — — — — — Company Direct YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU Percentage of ownership 35 interest held by the Company Percentage of ownership interest/voting Percentage of ownership interest/voting Ownership power/profit sharing indirectly held by the power/profit sharing indirectly US$19,255,000 RMB75,000,000 RMB273,900,000 RMB178,800,000 Registered capital RMB3,361,000,000 Registered capital RMB1,000,000,000 (CONTINUED) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL TO THE CONSOLIDATED NOTES PRC, limited liability Company PRC, limited liability Company PRC, limited liability Company PRC, limited liability Company PRC, limited liability Company Place of incorporation/ establishment and operation and type of legal entity Company Place of incorporation/ establishment and operation and type of legal entity PRC, limited liability Guangzhou Northring Super Highway Company Limited Guangzhou Pazhou Port Company Limited Company Limited Guangdong Shantou Bay Bridge Company Limited Guangdong Humen Bridge Company Limited Guangdong Qinglian Highway Development Associates Guangzhou Western Second Ring Expressway Company Limited Joint venture (a) The profit sharing ratio was changed to 18.446% from 2010 onwards. 39 GROUP STRUCTURE COMPANY INFORMATION http://www.yuexiutransportinfrastructure.com http://www.irasia.com/listco/hk/yuexiutransport http://www.hkexnews.hk Beijing Financial Assets Exchange Term Notes RMB1,000,000,000 3.58 per cent. Medium due 2022 (code: 101901632) Term Notes RMB1,000,000,000 3.47 per cent. Medium due 2023 (code: 102000026) Term Notes RMB500,000,000 3.54 per cent. Medium due 2023 (code: 102001532) Term Notes RMB1,000,000,000 3.78 per cent. Medium due 2026 (code: 102100198) INVESTOR RELATIONS For further information about Yuexiu Transport Infrastructure Limited, please contact: Ms Grace Li Telephone Facsimile : Email (852) 2865 2205 : (852) 2865 2126 : [email protected] WEBSITES TO ACCESS Bonds and notes Shanghai Stock Exchange per cent. Corporate Bonds RMB290,000,000 4.1 due 2021 (code: 136323) per cent. Corporate Bonds RMB120,000,000 3.6 due 2021 (code: 136804) per cent. Corporate Bonds RMB700,000,000 3.38 due 2023 (code: 136324) Bonds RMB800,000,000 3.18 per cent. Corporate due 2023 (code: 136806) Bonds RMB1,000,000,000 3.63 per cent. Corporate due 2026 (code: 175650)

& s Road East ’ (Chairman) CORPORATE AND INVESTOR RELATIONS INFORMATION RELATIONS INVESTOR AND CORPORATE YUEXIU TRANSPORT INFRASTRUCTURE LIMITED INFRASTRUCTURE TRANSPORT YUEXIU Shares The Stock Exchange of Hong Kong Limited The stock codes are: The Stock Exchange of Hong Kong Limited-01052 Reuters-1052.HK Bloomberg-1052 HK Tricor Abacus Limited Level 54, Hopewell Centre 183 Queen Hong Kong LISTING EXCHANGE Wanchai Hong Kong HONG KONG BRANCH SHARE REGISTRAR Hamilton HM 10 Bermuda HEAD OFFICE AND PRINCIPAL PLACE OF BUSINESS 17A Yue Xiu Building 160 Lockhart Road Certified Public Accountants Registered Public Interest Entity Auditor REGISTERED OFFICE Victoria Place, 5th Floor 31 Victoria Street COMPANY SECRETARY Mr Yu Tat Fung AUDITOR PricewaterhouseCoopers audit committee members Mr Fung Ka Pun Mr Lau Hon Chuen Ambrose Mr Cheung Doi Shu Independent non-executive directors Independent non-executive Executive directors Mr Li Feng Mr He Baiqing Ms Chen Jing Mr Xie Yanhui BOARD OF DIRECTORS BOARD OF

Annual Report 2020 176