Group-owned brands Guangdong Provincial Communication Group Co., Limited 2019

Guangdong Provinicial Guangdong Expressway Yueyun Transportation Guangdong-Hong Kong Communication Group Co., Ltd. Pass App Yuexing App Bus Cross-the-Border WeChat Public Account WeChat Public Account WeChat Public Account WeChat Public Account

Designer: Guangdong Highway Media Co. Ltd. About this Report

To improve readability and for ease of writing, we have used terms such as Provincial Communication Group, the Group, the Company and We interchangeably in this report. English translation for the Group's name is GUANGDONG PROVINCIAL COMMUNICATION GROUP CO., LTD.

Quality Assurance Processes About this Edition and Procedures

By releasing and distributing questionnaires on our This report is the ninth annual Corporate Social official website, we had better communication with our Responsibility (CSR) report published by Guangdong stakeholders, helping them fully understand our business Provincial Communication Group Co., Ltd. goals as well as needs and expectations of interested parties, which allows the Group to better assume its social responsibilities.

Scope of Coverage References and Standards Communications, leading to a better life

Period of This Report includes information from State-owned Assets Supervision and Administration reporting: January 1, 2019 to December 31, 2019, with Commission of the State Council some information beyond this period of time. Guiding Opinions on the Performance of Social Responsibility Scope of Guangdong Provincial Communication by Central Enterprises reporting: Group Co., Ltd, its subsidiaries and branches. Chinese Academy of Social Sciences Data Data and descriptions in this report are from Guidelines on the Formulation of Chinese Corporate Social sources: the Group's Yearbook and other official Responsibility Reports (CASS-CSR3.0) documents. International Organization for Standardization (ISO) ISO26000 Social Responsibility Guide (2010) Reliability

There are no false records, misleading statements or material omissions in this report. Contact Us

Mailing address: Requesting for Multilingual Versions Strategic Development Division Guangdong Provincial Communication Group Co., Ltd This report has been prepared in Chinese and English in Floors 58-61, Leetop Plaza, 32 Jiangdong Road, Pearl River both digital and print formats. You can download the New City, Tianhe District, Guangzhou, Guangdong electronic version from the website of Guangdong Provincial Communication Group Co., Ltd. Zip code: 510623 Telephone: 8620-29006018 Fax: 8620-29006300 http://www.gdcg.cn

Steps to Selecting Topics for the Report Report Writing Process

Launch the project→Make a plan→Form a task force→ When preparing this report, we asked opinions from Select topics for the report→Organize materials→ affiliated companies and functional departments of the Develop report framework→Write the report→Solicit Group to further narrow down the content. public opinion→ Finalize the report→Format text and place graphics in the document→Proofread the draft→ Publish the report CONTENTS

Message from Board Chair and General Manager 01 Mission Statement Business Philosophy To create harmonious To balance productivity & 30 Years Along the Expressway 03 communications responsibility, and prioritize leading to a better life service & quality Key Performance Social Performance Core Values Management Philosophy Company Profile 05 Corporate Responsibility 45 To embrace social To follow procedures and Employee Responsibility 48 responsibilities improve efficiency Major Social Responsibility 09 and share the fruits of growth Tasks in 2019 Safe Production 51 Community Responsibility 53

Responsibility Management Environmental Performance

Responsibility Governance 31 Green Operation 61 Integrated Responsibility 33 Green Business 65 Coordination of Responsibility 37 Green products 68 Green Ecology 69

Market Performance Afterword

Customer Responsibility 39 Outlook on Corporate Responsibility 71 Responsibility Partner Responsibility 43 Names of Participating Organizations 73 Framework and their Corresponding Roles Index 74 Entrepreneurial Spirit Social Responsibility Philosophy Spirit of innovation: daring to be the first Spirit of pragmatism: To pursue our mission of diligent and benevolent "communications, leading to a Spirit of sacrifice: better life" and to deliver high willing to give away quality people-oriented transportation services by Vision Statement enabling the travel of people and the flow of goods To become a leading provider of products and services for modern transportation infrastructure at home and abroad Key Performance Responsibility Management Market Performance Social Performance Environmental Performance Afterword

Message from Board Chair and General Manager

Under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, Overlooking South Guangdong, you will get a bird's view of the majestic bridges across river Guangdong Provincial Communication Group Co., Ltd has fully implemented the "1+1+9" Plan and sea, as well highways leading in different directions. Thanks to all the toil and effort of developed by the Provincial Party Committee and the Provincial Government. We seized the significant Transportation Employees in Guangdong, we have seen countless rich fruits. opportunity to contribute to the regional development plan of One Core, One Belt and One Region, and the national strategies such as the Belt and Road Initiative, the construction of the National Over the past year, Guangdong Provincial Communication Group Co., Ltd spared no effort to Transportation Network, the strategic plan of Guangdong-Hong Kong-Macao Greater Bay Area and the serve the people wholeheartedly. In order to address the issues that the community are most plan to transform Shenzhen to a pilot zone to demonstrate socialism with Chinese characteristics. We concerned with, we deepened the expressway reform, removed inter-provincial toll stations, have been working hard to elevate our Group to a large-scale international state-owned investment company that focuses on transportation, leads road construction projects, and serves people in which is an important part to implement supply-side structural reform of transportation, traveling and logistics. improved the quality of transportation development, and contributed greatly to the national plan of building a strong transportation network. In doing so, we have improved our community We remain true to our original aspirations and keep our mission firmly in mind, including meeting the overall requirements on Party Building for State-Owned Enterprises (SOEs) in the new era, and satisfaction and increased the quality of our services. We kept our nose to the grindstone, unswervingly strengthen Party Leadership and Party Building, so as to integrate them into all aspects of ensuring smooth expressway operations, pushing forward the Toilet Revolution in service corporate governance. In the Year of Enhancing the Organizational Power, we implemented the areas, upgrading quality, and taking the lead to bring the intelligent transportation industry to a three-year action plan of the Provincial Party Committee to strengthen the Party's grassroots higher level. We worked hard to be a vanguard to meet people's requirements for a happy and organizational structure. By focusing on engineering construction, operations management, comfortable travel. transportation and other sectors, we have fully implemented policies and unleashed the potential of development through Party Building. Over the past year, the Group thoroughly studied the Guangdong-Hong Kong-Macao Greater We reviewed the situation and took many factors into consideration, including the overall changes of the Bay Area Planning and Development Outline and its implementation suggestions. We seized macro environment and the transportation industry in the new era, the general trend of industry the development opportunities of the Greater Bay Area to optimize its industrial structure and transformation, the basic ideas for the reform of SOEs, and changes in such areas as enterprise's pull out all the stops to participate in its construction, by thoroughly developing land resources business development, operations management, resource integration and capital operation, to develop along expressways in the area, promoting the transformation and upgrading of its supporting new concepts, new thoughts and new requirements. industries, and enabling a high-quality development. We have been a pioneer in the We built consensus in the process of working as an an insider of the transportation sector, reflecting on construction of the Guangdong-Hong Kong-Macao Greater Bay Area. the work as an outsider, and return to work as an insider again. Our development was driven by innovation, balanced by coordination, optimized by green policy, pushed forward by opening up, and Over the past year, in order to implement the "1+1+9" work plan of Guangdong Province and to strengthened by sharing. We have made full use of new models and new technologies in our meet people's needs for a happy travel, the Group has gone all out to accelerate the development, created better products and services, and improved the quality of our development. construction of expressways, resolutely breaking the traffic "bottleneck" for regional economic We continued to make contributions to the rapid development of Guangdong's economy and help build development in Guangdong, staying on schedule in the construction of six expressways, a happy Guangdong. As we improved our ability to operate and develop, we have successfully including Nansha Bridge, Meiping Expressway and Qingyun Expressway, and enabling them completed the mandatory tasks assigned by the Provincial Party Committee and the Provincial to be opened to traffic on time. We have entered a peak construction time with the Government, as well as preserved and appreciated state-owned assets. To meet our goal to accelerate industrial upgrading while maintaining quality, we encouraged innovation, resource optimization, reconstruction and expansion projects, including Shenzhong Link, Kaiyang Expressway and industrial upgrading, and other major measures for sustainable development. other projects in the Greater Bay Area, as well as those projects in the east and west parts in A wise man changes as time and event change. Stepping into 2020, we need to maintain our momentum West Guangdong. With a strong sense of political and social responsibilities as a SOE, we are by deepening reform in major areas and key sections, accelerating the achievements of more substantial, the main force to contribute to the economic and social development. systematic and breakthrough goals, and strengthening the bottom-line thinking. We should prepare We are now pushing forward the work such as building strong transport network, construction ourselves mentally and physically to respond to changes in the external environment in a long run, strike a balance between containing coronavirus and pushing economic development so as to stay healthy and of the Guangdong-Hong Kong-Macao Greater Bay Area and the support for Shenzhen to build strong in the face of adversity while helping the economic recovery. a demonstration zone of socialism with Chinese characteristics, helping Guangzhou to 2020 is a year for us to conclude our work in building a well-off society in an all-round way and the revitalize out of an old city and promoting the Four New Highlights in an orderly manner. We Thirteenth Five-Year Plan. In this year, we will reach a tipping point for our 100-year-old goal and our fight must effectively fulfill our social responsibilities as SOEs, in terms of development scale, major against poverty. We must be more proactive and conscientious to perform our duties and responsibilities, projects, operational efficiency, service level, and corporate governance. work hard to address challenges, and win more opportunities for development. We should take the lead in promoting the construction of a modern and comprehensive transportation system.

Secretary, Party Committee Deputy Secretary, Party Chair, Board of Directors Xiaohua DENG Committee General Manager Xiaohua LIU

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Stay true to our original aspirations, stay practical and responsible

Years Hard work is the key to happiness. Guangdong Provincial Communication Co., Ltd will continue to carry forward our professional spirit in the new era, Along the Expressway stay true to our original aspirations, and staying practical and responsible so as to continue to promote the expressway industry and devote ourselves (1989 2019) in building strong transportation network four our country. -

Celebrate the 70th anniversary across the country

On June 28, 2000, Guangdong Provincial Communication (1949-2019) Group Co., Ltd was established. It is a state-owned enterprise wholly owned by the government, consisting of companies formerly affiliated to the Provincial Communications Department and the General Office of the Standing Committee for Provincial Communications lead the Reform and Opening-up People's Congress, and Provincial Railway Group Co., Ltd. Nansha Bridge

Total length of expressways opened to traffic

9495km

Guangfo Expressway

Guangdong is at the forefront of reform and opening up and its expressway construction work has been leading the industry across the country. Guangfo Expressway, which was opened to traffic on August 8, 1989, is the first expressway in Guangdong Province and the second in China to be opened to traffic. The completion of Guangfo began the prelude of the story that we serve the society in Guangdong through expressways.

03 04 CSR Report 2019 Communications, leading to a better life excellent performance Lead the industry with

Key Performance

Lead the industry with excellent performance

Company Profile 05 Major Social Responsibility Tasks in 2019 09 excellent performance Lead the industry with

Key Performance Responsibility Management Market Performance Social Performance Environmental Performance Afterword

Company Profile Executive Team Member, Party Committee Xiaohua DENG Party Committee Secretary Xiaofeng CAO GUANGDONG PROVINCIAL COMMUNICATION GROUP CO., LTD. is a large state-owned sole proprietorship company approved by Chair, Board of Directors Deputy General Manager Guangdong Party Committee and the Provincial Government. It was established on June 28, 2000 in Guangzhou, with registered Deputy Secretary, Party Committee Xiaohua LIU Muqin CHEN Member, Party Committee capital of 26.8 billion Chinese yuan. Its main business involves "investing in/financing, building, and operating road and expressway Member, Board of Directors General Manager infrastructure", "providing travel services and logistics" and "comprehensively developing and managing supporting resources Deputy Secretary, Party Committee Zhengting HUA Degong TONG Member, Party Committee associated with transport facilities such as land and its relevant services". Secretary, Commission of Discipline Inspection Deputy General Manage Deputy Secretary, Party Committee Member, Party Committee Jun HONG Yufeng ZHI Member, Board of Directors Chairman, Labor Union Deputy General Manager Commissioner, Guangdong Audit Office Outside Director (full time), Total managed Total business Total length of expressways Xiaomiao LIN Zhi LI assets assets managed by the Group stationed in the Group Board of Directors Member, Party Committee Outside Director (full time), Yanbin HUO Deputy General Manager Hongfeng XU Board of Directors 628.1 424.6 7104 km billion yuan billion yuan No. of employees Corporate Organizational Structure No. of No. of listed The Group strictly complies with relevant laws and regulations to create and develop its corporate organizational structure. For wholly-owned companies important matters, the Group's Party Committee "firstly discusses them in the Party, and then submits for further consideration". Our or holding among them decision for major issues is made after the Party Committee's discussion. By modifying and improving the implementation methods for companies 17 2 64184

Major Issues, Major Personnel Appointments and Dismissals in SOEs, we have clarified the respective rights of the Party Committee, For 15 consecutive years the Board of Directors and the General Manager's Office. The improved corporate organizational structure and regulations for modern enterprises allow the Board of Directors to make decisions and the Board of Supervisors to supervise, forming an effective mechanism on the list of On the list of No. of No. of China's Top Guangdong's Top of decision-making, supervision and management that consists of the Party Committee, Board of Directors, and Board of Supervisors. companies enterprises in based in Hong the scope of Kong and 4 consolidation 208 Macao 500 50 Guangdong Provinicial Communication Group Co., Ltd.

Party Committee Board of Directors Office of the Commissioner for Audit

Three Primary Operations Five Business Sectors Communist Youth Labor Union Commission for Management Team League Discipline Inspection (Monitoring Center) Business Management Division (Maintenance Center) Infrastructure Management Division (Settlement Center) Financial Management Division Management Division Safe Production Supervision Strategic Development Division Investment Management Division Supervision and Audit Division Human Resources Division Party-Mass Relationship Division Legal Affairs Division Office of the Board Directors Office of the Party Committee General Affairs Division Information Center Investment, construction, and operation of Investment/financing, road and expressway infrastructure construction, and operation of road and expressway infrastructure construction, inspection, supervision and design

Travel services and logistics Travel services and logistics

Subordinated enterprises Development of supporting resources Comprehensive development associated with transport facilities such Guangdong Provincial Freeway Limited Company Guangdong Provincial Highway Construction Co., Ltd Guangdong Road & Bridge Construction Development Co., Ltd. Guangdong Communication Enterprise Investment Co. Guangdong Provincial Expressway Development Co.,Ltd. Xin Yue Company Limited Guangdong Nanyue Transportation Construction and Investment Co. Ltd. Guangdong Unitoll Services Incorporated Guangdong Yueyun Transportation Co. Ltd. Weisheng Transportation Enterprise Company Limited Kee Kwan Motor Road Co. Ltd. Guangdong Gongbei Motorcar Transportation Co. Ltd. Guangdong Hualu Transport Tech. Co. Ltd. Guangdong Provincial Communication Group Financial Co., Ltd. Guangdong Leatop Real Estate Investment Co., Ltd. Yuegang Transport Company Ltd. and management of supporting as land Guangdong Urban Transport Investment Co., Ltd. resources associated with transport facilities such as land and its relevant services Intelligent transportation business

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Shaoguan Expressway section between Map of the Group's expressway opened to traffic 青龙 Meizhou and Pingyuan Section between Longchuan and (August 2019) Zijin of Hehuiguan Expressway Total length of expressway opened to (January 2020) traffic across the province 3 9495 英红 km Meizhou

Total length of expressway opened to Section between Qingxin in traffic that the Group operates Qingyuan and Xinxing in Yunfu of Shanzhan Expressway 樟溪 (January 2020) 5 Heyuan 7104 km Qingyuan 清远 Chaozhou 龙湾 江坳 G45大广高速 No. of service areas managed (Including parking areas) 地豆 棉洋

封开 4 江谷 坪上 Shantou 345 潮惠高速 播植 高良 笋围 桂峰 G80云梧高速 宾村 沙涌 顺景 Zhaoqin Guangzhou

Foshan S13潮惠高速

G80广云高速 潮惠高速 广明高速 1 新桥 Shanwei 福永 虎门大桥 (南沙) 广中江高速一期 皇岗 Shenzhen

Zhongshan

寻贤岗 2 52 Zhuhai Nansha Bridge Hong Kong (April 2019)

Macau 6 港珠澳大桥

Yangjiang Table of Expressway Constructed by the Group in 2019

Expansion project for the Expressway section Project Name Length (km) Investment Opened as of section between Sanbao and between Gaoming and (billion yuan) Shuikou of Fokai Expressway Enping 1 Nansha Bridge (November 2019) (April 2019) 12.89 11.180 April 2, 2019

2 Expressway section between Gaoming and Enping 43.47 4.696 April 3, 2019

Legend 3 Expressway section between Meizhou and Pingyuan 33.36 5.780 August 30, 2019 Section between Qingxin in Qingyuan and Xinxing in The Group's projects Projects run by other 4 Existing service area Yunfu of Shanzhan Expressway 157.75 16.846 January 1, 2020 opened to traffic companies Section between Longchuan and Zijin of Hehuiguan 5 151.95 16.093 January 1, 2020 The Group's under Other company's Service area under Expressway construction and projects under construction Expansion project for the section between Sanbao and ongoing projects construction 6 Shuikou of Fokai Expressway 33.40 3.430 November 7, 2019 The Group's expansion Yueyun Energy gas 改扩建 Service area project project station Total 432.19 58.025

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Projects Opened to Traffic in 2019 Progress Report 2019 Major Social All planned key expressway projects in Responsibility 2019 have been completed Tasks in 2019 Main part of Nizhou Waterway Bridge

Major key projects help push forward the construction of Dual Areas 1688meters Steel Box Girder Suspension Bridge Actively construct and invest in Total investment in key Completion rate of key projects World No. 1 expressway projects provincial expressway projects in 2019

Starting from Dongchong Town (Nansha District, Guangzhou), passing through Nansha No. of key provincial 52 billion yuan 115% District and Panyu District of Guangzhou, then crossing the Pearl River Dasha Waterway, Nanshan Bridge expressway projects 28 Of all the provincial Seagull Island, Nizhou Waterway, entering Shatian Town (Dongguan City), after passing taken on Of all provincial investment in investment in expressways, Humen Port, and finally connecting with Guangshen Riverside Expressway (on the way infrastructure, it represents it represents connecting with the mainline of the national highway, the southern section of Guangzhou Length Design Speed Beltway, and the northern section of Guangzhu Expressway), this project plays a crucial 6 projects opened to traffic, 21 projects that role in implementing the Outline of the Plan for the Reform and Development of the Pearl continued on, and 1 newly opened project 44% River Delta, promoting the integration and redevelopment of the regional economy of 12.89 100 30% km km/hour Pearl River Delta, expanding the expressway network in Guangdong, and improving the traffic flow and safety on both sides of the Pearl River. Diligently keep the construction projects in 2019 on schedule Expressway from Gaoming Of the total length of projects completed and Total length of expressway provincial expressway, to Enping 6 opened to traffic that the Group operates it represents Starting from Gao Village (Genghe Town, Gaoming District, Foshan City), Total length of an interchange was built to connect expressway added 398 7104 75% Jiangluo Expressway, which passes km km through Rencun Town (Xinxing County, Yunfu City), as well as Longsheng Town and Magang Town of Kaiping, Continue on 21 expressway Support and push forward the preparation Jiangmen, and finally ending at the east construction projects in an orderly work for major projects side of Fengshan Reservoir, Shahu manner Town, Enping City. It is connected to Following up on the preliminary work of the Huangmaohai cross-sea Kaiyang Expressway (with Fengshan Major projects in the Greater Bay Area, such as channel project, we accelerated the approval process of the project's Interchange) and Zhongkai Shenzhong Link,Reconstruction and Expansion of feasibility report. We deepened our study on the construction plan, bridge Expressway. This project is an Kaiyang Expressway and Yangmao Expressway, and tunnel plan, connectivity across the river, investment and financing important passage from the central as well as Reconstruction and Expansion on the plan that is associated with the compilation of the feasibility report for urban area of Guangfo radiating to the East and West parts of Guangdong, have all been Lianhuashan Cross-River Project, and have achieved the expected results. southwest of Guangdong Province and then to Hainan. It plays an important at the peak construction time. Construction of We also participated in the preparation work of the Lion Ocean Passage role in strengthening the transportation other projects such as the expansion project of project and conducted in-depth research on technology, investment and the Shenshan Expressway and the Maozhan links between the central urban area of financing schemes. We pushed forward the preparation work of the Guangfo and the west side of the Peal Length Design Speed Expressway have started. projects such as the reconstruction and expansion of Longxun River Delta, as well as to promote the (Jiangzhong, Pingnan) to Reshui Section of Changshen Expressway as transportation integration in the Pearl well as that for Guangshen Expressway. River Delta region. 43.47km 100km/hour

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Expressway from Meizhou to Pingyuan

The starting point is in Shangcun Village (Chengbei Town, Meijiang District), which is connected to the existing Changshen Expressway, passing through Meijiang District, Meixian District, and Pingyuan County. It ends at Tianxing Village, Date Town, Pingyuan County. Connecting with Pingxing Expressway, together with Meihe Expressway and Pingxing Expressway, it formed a "triangle" passage of the expressway in eastern Guangdong, which has a very positive role in revitalizing the economy of the Central Soviet Area and promoting the high-quality social and economic development of the areas along the route.

Length Design Speed 33.36 100 km km/hour Section between Longchuan and Zijin of Hehuiguan Expressway Length Design Speed Located in Heyuan City, Guangdong Province, this project starts at the junction of Jiangxi and Guangdong provinces, connecting to the expressway from Ningdu to Dingnan in Jiangxi Province, and finally ending at Zicheng Town, Zijin County. It 151.95 100 connects the Zijin Connecting Line for Jiexi to Boluo Section of Shanzhan Expressway. km km/hour

Reconstruction and expansion project for Sanbao to Shuikou Nanshan Bridge Section of Fokai Expressway

The reconstruction and expansion project of Sanbao-Shuikou section of Fokai Expressway has enabled the operation of bidirectional 8-lane Fokai Expressway. This project is a key part of the Thirteenth Five-Year Plan of Guangdong Province. Thanks to the practice of opening to traffic while under construction, it is about one and a half years ahead of the approved completion time (four years). We have set a good example for the reconstruction and expansion project that is build at a fast speed while ensuring the quality in Guangdong. Qingxin in Qingyuan to Xinxing in Yunfu Section of Shan(tou)Zhan(jiang) Expressway

Located on the outside of the western Pearl River Delta, it is an important part of the Length Design Speed Length Design Speed Shantou-Zhanjiang Expressway, which is the Second Horizontal in the Guangdong Expressway Network. It is an express passage for the western and northern parts of 157.75 100 33.40 100 Guangdong leading to the western Pearl River Delta. km km/hour km km/hour

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The Nansha Bridge (formerly the Humen Second Bridge) project starts in Dongchong Town, Nansha District, Guangzhou City, and connects to the South Section of the Guangzhou Beltway of the main line of the National Highway, as well as the Guangzhou-Zhuhai North Expressway, passes through Nansha District and Panyu District ANansha dream of glory Bridge for 100 years of Guangzhou, crosses the Pearl River Dasha Waterway, Seagull Island, and Nizhou Waterway consecutively, and enters Shatian Town through Humen Port, Dongguan City, with its ending point connected to the Guangzhou-Shenzhen Expressway along the Yangtze River, as well as a connecting point reserved to connect the planned Hehuiguan Expressway. The project has played an important role in implementing the Outline of the Plan for the Reform and Development of the Pearl River Delta, promoting the economic integration and redevelopment of this region, improving the expressway network in Guangdong, and ensuring traffic flow and safety on both sides of the Pearl River.

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The first steel barrel was successful The construction of the enclosed section of removed on the West Artifical Island Yanzhu暂用 on the East Artifical Island

Construction platfrom on the ocean of the east main tower of Zhongshan Bridge

Airport Interchange

Wanqingsha Hengmen Interchange Interchange Prefabrication of the E1 section of the shell immersed tunnel project

Construction site of the non-navigable span approach bridge of Lingtingyang Bridge (Main span: 1666 m)

Landmark project under construction - Shenzhong Link Shenzhong Link is a large-scale project, with extremely complicated construction conditions and A world-class project "linking bridges, islands, exceptional high technical requirements. No one in the world has built a two-way eight-lane extra long tunnels and underground areas" undersea immersed tube tunnel before. It is also the first time in China that an extra large suspension bridge is anchored in water. Its engineering process is extraordinarily complicated. It is another world-class cluster project that connects "bridges, islands, tunnels and underground areas" after the The project adopts a plan with the tunnel on the west and the bridge on the east. The total length of the Hong Kong-Zhuhai-Macao Bridge. The construction of Shenzhong Link has strategic significance in the girder is 24 km, including a total length of 17.03 km of bridge and 6.87km of the tunnel. On the east implementation of the Belt and Road Initiative national strategy, in the improvement of the national there is an artificial island and a tunnel and on the west there is an artificial island and Lingding Channel expressway network and the comprehensive transportation system in Pearl River Delta (PRD) areas, in suspension bridge (with a main span of 1666m), Hengmendong waterway cable-stayed bridge (with a connecting the economies and allocating resources on the east and west banks of PRD areas, in the main span of 580m) and an arch bridge that is not opened to navigation. Pilot project of Shenzhong advancement of the integrated development of PRD and of its industrial upgrading and transitioning, Link began construction on December 2016 and will be completed and opened to traffic in 2024. and in the promotion of the Guangdong-Hong Kong-Macau Greater Bay Area.

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Enhance Service Levels with Remove Inter-provincial Toll Houses a People-oriented Approach Following the important deployment plan by the Central Provide better services to "remove digestions Committee and the State Council on removing toll houses at borders between provinces so as to show our political support. Taking on about 70% and ensure a smooth traffic" on expressway We have successfully enabled the transition between the new of the total tasks to remove and old systems, and officially merged into the national network. By means of such measures as mobilizing all staff, One Road inter-provincial toll houses One Plan, establishing and improving the Monitoring Platform for the Integrated Road and Transportation Business, timely publishing highway guidances, and creating a multi-channel communication mechanism with neighboring provinces, the operation and management of expressways are more targeted.

Comprehensively improve road transportation services

We continued to promote the strategic transformation of the No. of inter-provincial industry, expand integrated urban-rural transportation, toll houses strengthen the integrated operation of regional networks at a removed/renovated By expanding the cross-border logistics network and the large scale, and vigorously encourage online appointment for logistics market on the west side of the Pearl River, we have vehicles, urban TC buses, customized lines, and the transition to 16 increased the supply of goods in a steady way. We also actively an integrated urban-rural passenger transport system. We participated in the business activities in the Zhuhai Hongwan spared no effort to support the shuttle bus services at the port of No. of ETC entrances Logistics Park. Hong Kong-Zhuhai-Macao Bridge. constructed

Further elevate the quality level in 1331 service areas

We continued to improve the sanitation facilities and further pushed the Toilet Revolution forward, adding 13 new washrooms, No. of lanes constructed No. of toll plazas between renovating 84 washrooms and 45 sewage systems in service and renovated road sections renovated areas, and connecting 23 service areas with the municipal sewage network. In order to apply waste classifications in service areas, we have invested a total of 41.25 million yuan to add/reno- 2722 54

vate 29,980 Waste Collectors and to construct/renovate 316 Waste Collection Centers in 317 service areas (parking areas). No. of systems added to toll plaza No. of toll houses We took regional cultural characteristics into consideration during entrance to manage overweight renovated our construction of service areas and transformed 5 pairs of vehicles service areas, including Yayao, Fucheng, Xincheng, Wayaogang, and Doumen, to high-end commercial areas. We have improved 673 571 the management and better promoted our brand of service areas.

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Further Optimize the Structure and Development Push Forward Intelligent Transportation Industry Plan of Primary Operations Actively push land development forward

Leetop Center (Nansha Zhihui Jinggu Project) is the first commercial real estate project for the Group to implement the development plan of the Guangdong-Hong Kong-Macao Greater Bay Area, participate in its construction and enter Nansha Free Trade Zone. It will be the center of the Group's headquarters that helps transform and upgrade in such areas as psuedo-banking, modern logistics, real estate development, The Group has been actively planning for an advanced Guangdong Municipal Transportation Investment Co., Ltd cross-border e-commerce, and intelligent equipment manufacturing center on intelligent transportation in transportation. Gaolan Port, Zhuhai, so as to build up a complete intelligent transportation industrial chain. It has five major business sectors: (1) expressways, rail transit, municipal engineering and supporting facilities; (2) bus stations, road transport stations and large-scale transportation hub complexes; (3) intelligent road transport and modern logistics industry; (4) investment in and financing projects of transportation infrastructure and the integrated development of urban areas; and (5) intelligent transportation, smart city and their relevant industries.

After the renovation of Xintang Interchange, General Manager Xiaohua LIU led the team to participate in the it released 198,800 square meters of land 2019 World Transportation Conference held in Beijing, which (about 299.67 acres), with a floor area ratio helped promote the Group's intelligent transportation industry. of 3.0 and a capacity area of 599,300 square meters. An over-the-air municipal park (an area of about 155,000 square meters) will be built above the interchange Accelerate the construction of National Autonomous Further consolidate internal resources of the Driving and Intelligent Transportation Demonstration Zone to connect the east and west plots of the enterprise, unleash potential of the Group, Guangzhou-Shenzhen Expressway Project in Nansha District, and build a research and revitalize stock assets and resources, and development center on intelligent transportation. enable the efficient use of assets

Continue to deepen the structural reform on Optimize internal asset struc- the supply side ture. Deepen the research on the assets restructuring plan for expressways, and Highlight the Complete the task to Spare no effort to Continue to promote reorganization and bottom-line thought to remove "zombie reduce the number of implement the toll "cut down on debt" enterprises" and to organizational levels preferential policies consolidation of projects like clear/restructure debt and legal entities Guangfozhao, Luoyang, and Jiangzhong.

introduce Three Zombie Have completed 15 tasks Total accumulated Guangdong-Macao enterprises were to reduce the number of amount reduced due 7.182 Foundation smoothly transferred to organizational levels and to toll preferential the judicial department legal entities policies billion yuan

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Key Performance Responsibility Management Market Performance Social Performance Environmental Performance Afterword

CRS Performance in 2019 including: Total business income Financial Performance No. of vehicles/times for Total amount of reduction and No. of tow trucks and cranes No. of vehicles/times that had Assessment results by exemption due to Green for road rescue in a year been rescued in a year year-on-year growth which tolls are reduced or Passage policy 49.1 4.42% SASAC exempted due to Green Achieving Excellent billion yuan Passage policy consecutively in the billion yuan recent decade 1.622 521 95622 Total business assets Total amount of reduction and exemption during major holidays 14.08 million No. of rescue vehicles Total length of self-operated year-on-year growth in a year service 424.6 6.7% Rate of state-owned No. of vehicles/times for which 2.760 billion yuan billion yuan asset value preserving tolls are reduced or exempted and appreciation Total amount of reduction due to during major holidays 15%-off-tolls policy for trucks 31804 5588 km Tax paid 103.49% year-on-year growth 4.363 833 Total reduced or -10% 156.85 million million yuan exempted toll billion yuan charges 7182 million yuan Indicators for passenger transportation industry Operation Performance

No. of passenger bus stations No. of passenger and Percentage of the Group's Annual passenger volume that are above Level Five in commercial vehicles high-level passenger bus (excluding buses and taxis) Guangdong, Hong Kong and stations of the province's total Macao 9706 21% 68.67 91 million No. of passenger vehicles in Percentage of the Group's Long-distance passenger operation (including signs for bus route information No. of passenger bus turnover (Including buses, taxis and buses in the of the province's total passenger vehicles and buses) routes rural areas) 21% 646084 2029 11251 10 thousand people km Percentage of the Group's passenger vehicles of the province's No. of signs for bus route No. of trucks in operation Goods transportation turnover total information (excluding buses and taxis) 4065 793 13% 18046 Interview by Today's Frontline about the work to ensure a smooth traffic on Humen Bridge during the Spring Festival 10 thousand tons km

Manage and control oversize/overloaded vehicles Partner Responsibility Performance 625182 486197 12111971 422949 8370200 18.04 7488456 12.81 14.09 196538 5120104 9.68 6.25 63496 4381858 5.07 4.56 4.03 2.25 1.79

2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Persuading overloaded vehicles to Number of overloaded trucks Rate of overloaded trucks (%) Rate of overweight trucks (%) return at the entrance (vehicle times) (vehicle times)

2016 5862 Audit and fight all kinds of toll violations on expressways (including fighting fake 2017 5484 Green Passage vehicles) 2018 6100

2019 8500 10 thousand yuan

21 22 CSR Report 2019 Communications, leading to a better life excellent performance Lead the industry with

Key Performance Responsibility Management Market Performance Social Performance Environmental Performance Afterword

Intelligent Transportation, Information- Nanyue Transportation Investment ization Construction and Management shares financial information Nansha Bridge The financial information sharing service center "took the lead to explore models to share financial information of the Vehicle Infrastructure industry, and actively introduced a new model to manage and Cooperative System control the financial transformation, featuring integrated The first national trial project fundraising and financing, comprehensive budget of Vehicle Infrastructure coordination, closed-loop online financial processes and Cooperative System on the digital organization models". We won the Best Practices road section that is opened Award in the 2019 in the Asia-Pacific Intelligent Financial to traffic Information Sharing Best Practices Evaluation. Base stations No. of 5G base stations installed 6

Yuetong Transport's Yuexing Platform Toll management Bridge management

Based on the underlying business platform such as mobile By innovating the modes of toll collection and operation, building By developing a custom smart integrated management unmanned intelligent toll houses with intelligent toll collection platform, applying Vehicle Infrastructure Cooperative System, travel, retail system, station service system, through the unified No. of online users Year-on-year growth business medium of the integrated business platform, it provided technology, unmanned self-service payment terminals, and high resolution visualization system, emergency users with unified travel services. Its platform architecture cutting-edge features of ETC like pre-transaction on ramp, management and dispatch system, integrated early warning enables a faster response and a front-end system that has a license plate payment, using the expressway before payment, system, streaming media management system, virtual and self-service payment by scanning bar codes on mobile panoramic monitoring system and other technologies on the branded IP image and unified service standards and processes. million 5.8 22% phones and returning cash change on terminals that facilitate integrated monitoring platform, as well as consolidating both payment in cash and non-cash, we enabled the the control functions like bridge health check, electronically Build an online ride-hailing system in a model of "people advanced management mode of unattended smart toll houses controlled drainage, intelligent equipment cabinet looking for vehicles" with the characteristics of Yueyun, of ETC + Self-service Toll Terminals + Vehicle Make management, power monitoring, and dehumidification which promotes the operation of ride-hailing business in Identification Devices + Comprehensive Verification System for systems, we enabled full-angle management and control, as Yangjiang, Chaozhou, Zhaoqing and other cities. Toll Collection". well as smart operations management.

Business income from Business income from custom intercity carpool passenger transportation Shenzhong Link 5 400 By building an intelligent integrated command and million yuan thousand yuan debug system, surveillance video dynamic monitoring throughout the process and information transmission network, and 12 video surveillance and United E-service Hualu Company ultra-long-distance (18Km) WI-FI backbone transmission networks in important construction areas Together, we took an active part in the inter-provincial toll of the main waterway, and applying new technologies collection work. Nanyue Transportation Investment shares such as BIM, it provided powerful technical support financial information for the intelligent construction of world-class super engineering projects as well as the management and Deploy, re-plan and construct the overall design plan for We introduced features like GPS, Beidou, GIS, and mobile debugging for waterway safety. network security in Guangdong Province, the data trans- terminals. By creating the integrated management systems mission interface specification in Guangdong Province, the technical solution for toll collection across residential and GIS sharing platform that includes three maintenance The world's first full-life cycle application of BIM areas, and the provincial business data center sections, namely, the baseline data, maintenance project technology on cross-sea passage cluster project Construct the communication center and video cloud management, and maintenance big data, we established the Demonstration Project on the Application of intelli- networking center to collect tolls in Guangdong Province Group's big Expressway Maintenance Information Manage- gent construction and Vehicle Infrastructure Construct the communication center and video cloud ment Platform, which helps solve issues like Information Silo Cooperative System for Shenzhong Link won the special award of Transportation BIM Engineering networking center to collect tolls in Guangdong Province and the lag of using information on expressway maintenance Innovation Award by China Communications so as to improve the Group's maintenance management Highway Association Construction platform over the sea of the capacities. West Main Tower of Zhongshan Bridge, Shenzhong Link

23 24 CSR Report 2019 Communications, leading to a better life The project adopts a plan with the tunnel on the west and the bridge on the east. The total length of the girder is 24 km, including a total length of 17.03 km of bridge and 6.87km of the tunnel. On the east there is an artificial island and a tunnel and on the west there is an artificial island and Lingding Channel suspension bridge (with a main span of 1666m), Hengmendong waterway cable-stayed bridge (with a main span of 580m) and an arch bridge that is not opened to navigation. Pilot project of Shenzhong Link began construction on December 2016 and will be completed and opened to traffic in 2024. excellent performance Lead the industry with

Key Performance Responsibility Management Market Performance Social Performance Environmental Performance Afterword

No. of No. of female No. of service No. of No. of technical

employees employees dispatchers management staff staff Employee Responsibility Performance

Customer Service Customer service phone number 64184 21128 833 12355 8007

No. of app Total number of Number of Total call volume users app downloads followers on WeChat Number of Incoming calls on incoming calls rescue services 1.846 1.32 526 Employee's age groups million million thousand 338thousand 291thousand 677 4522 Total number of Number of messages on 948 transportation incidents posted complaint cases 1699 opened, followed up Overall by Guangdonng Expressway and handled satisfaction Pass and WeChat 155 100% 31583 2006 2503 35 years old 36-45 41-45 and under years old years old 46-50 51-55 Over 55 years old years old Yuetong Card Phone Number Employee's education Employee's professional skills Technical staff

55 93 Total call volume 1699 112 895 978 1078 1478 922 3.027million 2641 7002 1197 4881 2315 3134 No. of complaint cases handled

Ph.D. Master's Technical Economic Senior Intermediate 148366 degree engineering management position position

Bachelor's College Other Financial Political Others Vice senior Entry level Unappointed degree associate's academic accountancy worker position position Mobile App degree degree National network of ETC Safety Performance Yuetong Card ETC card e-Travel WeChat app (Electronic Toll Collection) Quality Project Boshen Project Nanshan Bridge No. of users No. of users No. of users Among all the vehicle No. of vehicles in No. of service No. of (Humen Second Bridge)Project apps across the country, Guangdong stations self-operated Safe Project Phase II of the West Line Project Huiqing Construction Project it retains its position as installed ETC service stations Green Highway Yunlou Project Qingyun Construction Project 10.58 2.62 >5 Technology Demo million million million Excellent Project in Top three in the provincial quality and No. 2 19.59 150+ 34 post-project evaluation at safety comprehensive inspection million thousand completion Scientific Performance Carefully implement highly-valued Expressways managed and maintained Total investment on No. of scientific projects Number of technical Social Performance Environmental performance science and technology that have been approved guidelines measures on environmental protection by the Group or met assessment in 2019 29 2 and water conservation Percentage of excellent roads Percentage of excellent roads requirements with smooth surface free from ruts million Number of invention Investment in environmental yuan No. of achievements that patents 19 protection in 2019 243.47 won provincial and ministerial awards on 99.7% 100% 14 Number of utility science and technology million yuan development model patents 73 580 Random quality check for 17 projects under construction No. technical standards and Number of industrial Total length of highway landscape norms developed design patents Check physical indictors Check raw materials 2 2 greenbelt constructed 95.7% 95.8% 551km Passing rate Passing rate

25 26 CSR Report 2019 Communications, leading to a better life excellent performance Lead the industry with

Key Performance Responsibility Management Market Performance Social Performance Environmental Performance Afterword

Implement rural revitalization Shanhu Village, Jinhe Dare to go first and give full support to the Town, Jiexi County rural revitalization strategy through Targeted In order to preserve the "lucid water and lush mountains" and promote the rural revitalization, we set 6 major goals, including "to Shanhu Village is a select national observation point (196 in all) by the State Council Poverty Poverty Alleviation tasks The Group's Poverty Alleviation Task bring rural areas out of poverty, to form a leading industry, to Alleviation Office and an observation point for Force stationed in Shanhu Village complete infrastructure construction, to build public service poverty-stricken villages (5 in all) in Guangdong. United e-Service's Poverty Alleviation facilities, to improve the living conditions, and to ensure the It is a key village with poverty assistance for Task Force stationed in Pudian Village grassroots party building", and developed 41 pairs of poverty alleviation projects like roads and bridges renovation, tap water tourism and a village with its own characteristics Guangdong (2016-2018) Outstanding Poverty and office buildings, as well as implementation plans for 6 pairs in Guangdong. Jieyang city named it a demon- Alleviation Task Force of poverty alleviation projects like renovation for derelict houses, stration village with poverty assistance and a demonstration village in the new rural area. education assistance, and labor migration. We successfully completed the poverty alleviation goals and tasks for the poverty-stricken population each year as planned.

Adhere to Party Building and Party Leadership Multiple measures for poverty elimination Six Party organizations affiliated with the Group have paired up Employment through labor By the end of 2019, we had with 5 Party branches under Shanhu Village for Party Building. migration organized 60 visits in Moreover, our affiliated companies such as Provincial multiple forms for poverty Expressway and Guangdong Expressway conducted "Highway Education on poverty alleviation alleviation and had reached Construction Pioneers" Party Secretary project in the village. We out to 682 persons/times in donated an education base for Party Building to Shanhu as a joint Effective policy implementation poor households, including project with the local Party organizations and has effectively Party members. promoted the construction of the Party branch of Shanhu Village. Improving infrastructure construction Alleviate poverty through industry development It includes such projects as road and bridge construction and We developed seedling planting as a main business, family reconstruction, running water installation, open space for farming and photo-voltaic power generation. Assets income was exercises, public toilets, ecological parking lots, landscaping used to alleviate poverty. around lakes, demonstration for dress codes, and book cafe.

Puxing Village, Qingxin Help promote poverty alleviation through industry District, Qingyuan City development and create a new socialism countryside Adopt the development mode of "company + base + poor households", invest in the construction of poverty alleviation industrial bases, and participate in the edible fungus industry and Qingyuan chicken industry poverty alleviation projects A bird's view of Shanhu Village, Alleviate poverty through employment Jinhe Town, Jiexi County Help create a demonstration zone for a new socialism countryside

Puxing Village was selected as the demon- Targeted assistance Targeted approach to stration plan for 1000 Villages Demonstration Demonstration base of dragon fruit orchard for targeted poverty alleviation alleviate poverty and 10,000 Villages Reform in Qingxin Dis- in Puxing Village trict. It is one of the 12 demonstration villages Shanhu Vilage, Jinhe Puxing Village, Qingxin Accumulated amount invested in Xinqing District to create ecological and comfortable living environment, and earned a Town, Jiexi County District, Qingyuan City in targeted assitance quota of one Village with Unique Characteris- tics and 5 Demonstration Villages as well as Two poverty alleviation task forces are stationed in 5 million yuan fund. the villages, enabling seamless transition 20million yuan

27 28 CSR Report 2019 Communications, leading to a better life Lead the industry with excellent performance 30 Afterword Environmental Performance Communications, leading to a better life Provincial Awards Provincial Social Performance Market Performance Erguang Branch, Guangdong Road and Bridge Construction Erguang Branch, Guangdong together, Erguang) Development Co., Ltd. (Pulling Highway Co., Ltd. Jiangluo Branch, Guangdong (Love · Responsibility) Service Area Co., Ltd. Guangdong Top E Expressway travel) (I have your back as you Expressway Co., Ltd. Zhanjiang Branch, Guangdong (Happy travle along Zhandao) Transportation Co., Ltd. Qingyuan Yueyun Automobile (A happy travel in Qingyuan) Demonstration Company in Guangdong for Safe and Demonstration Company 2018 Civilized Transportation Activity in 2018 Provincial Excellent Youth League Day as the contest of Youth Study Day with the theme Vitality at the Grassroots Cultural Brands on Communications in Guangdong on Communications Cultural Brands Outstanding Poverty Alleviation Task Forces in 2016-2018 Outstanding Poverty Alleviation Task Forces in Guangdong in Task force of Guangdong United E Service Co., Ltd. Puxing Village, Taiping Town, Qingxin District, Qingyuan City Youth Excellent Organization in Guangdong Communist League's Lifeline Project 2018-2019 Youth League Committee of Guangzhu Section, Jingzhu Expressway Co., Ltd. of Innovation Achievement Award on the Modernization Enterprise Management in Guangdong Province Huiqing Company of Guangdong Road and Bridge Construction Development Co., Ltd. Demonstration Site for Women Workers Innovation Studio in Guangdong Female Rock and Tunnel Technology Innovation Studio, Engineering Divsion, Guangdong Transport Science Testing Co., Ltd. Award for Protecting People according to Laws Kee Kwan Motor Road Co. Ltd. Guangdong Labor Day Medal Yufeng ZHI, Chairman, Board of Directors, Guangdong Nanyue Transport Investment and Construction Co., Ltd. Liancheng ZHANG, Deputy General Manager, Guangdong Nanyue Transport Investment and Construction Co., Ltd. Zi CHEN, Guangdong Maozhan Expressway Co., Ltd. Fan HUANG, Deputy Director, Huayang Central Station, Shantou Branch, Guangdong Road and Bridge Construction Development Co., Ltd. Guangdong Labor Day Women's Award Fan HUANG, Deputy Director, Huayang Central Station, Shantou Branch, Guangdong Road and Bridge Construction Development Co., Ltd. Zhuojun CHE, Supervision Branch I, Guangdong Hualu Transport Tech. Co. Guangshenzhu Expressway Co., Ltd. Center Youth League of Yuetong Card Customer Service Guangdong Jiangzhong Expressway Co., Ltd. 2018 Provincial Excellent Youth League Day activity in the 2018 Provincial Excellent Youth League Day activity the Grassroots contest of Youth Study Day featuring Vitality at Responsibility Management Key Performance Labor Union, Danshui Toll Station, Shenshan West Branch, Labor Union, Danshui Toll Station, Shenshan West Branch, Guangdong Expressway Co., Ltd. Labor Union, Shizheng Center Toll House, Guangdong Pingxing Expressway Co., Ltd. Co., Ltd., Labor Union Committee, Yueyun Automobile Transportation Shanwei City 2018-2019 Excellent Youth League Member in Guangdong 2018-2019 Excellent Youth League Member 2018-2019 Top 100 Secretaries of Youth League Excellent Labor Union Worker in Guangdong The 5th Guangdong Demonstration Company for Learning Company for Learning Demonstration The 5th Guangdong Company for the Education and Lei Feng Demonstration Core Values in Guangdong Practice of Socialism Provincial Highway Jiangluo Branch, Guangdong Construction Co., Ltd Management Center of Shenzhong Link Guangdong Model Employee's Home League Member 2018-2019 Guangdong May Fourth Red Flag Youth Youth League of Longlian Management Office, Longhuai Expressway Youth League of Longlian Management Office, Longhuai Management Center, Guangdong Nanyue Transport Co., Ltd. Zi CHEN, Toll collector of Guangdong Maozhan Expressway Qi CHEN, Secretary of the Youth League Branch of Guangchong Expressway Co., Ltd. Jialin ZHANG Guangdong-Hong Kong Motor Transport Joint Venture Co., Ltd. Fengzhi LI, Guangshao Branch, Guangdong Road and Bridge Construction Development Co., Ltd. Feng XU, Jingzhu North Branch, Guangdong Expressway Co., Ltd. Liqiang YAN Task Force of Guangdong United e-Service Co., Ltd. in Puxing Village, Taiping Town, Qingxin District, Qingyuan City Yunqiang ZENG Party Secretary and Chair of Board of Directors Kee Kwan Motor Road Co. Ltd. Guangqing Branch, Guangdong Expressway Co., Ltd. Guangqing Branch, Guangdong One of Erguang Branch, Road Administration Team Development Co., Ltd. Guangdong Road-Bridge Construction Longhuai Expressway Management Center, Lianying Management Office, Guangdong Nanyue Transport Co., Ltd Guangdong Yunmao Expressway Guangdong Hualu Transport Tech. Co. Ltd. Research Institute on Road, Xinyang Management Office, Yunzhan Expressway Management Center, Guangdong Nanyue Transport Labor Union Committee, Guangdong Top. E Expressway Service Area Co., Ltd Co., Ltd. South Ring Section Branch, Guangdong Highway Construction Excellent Worker of Labor Union in Guangdong Excellent Worker of Labor Labor Union 2019 Provincial-level Key Construction Project of Guangdong Model Employee's Home "Rookie of the Times - I Grow with my Country" Speech Contest Excellent Award of the National "Great Power" Speech Contest Outstanding Worker for Poverty Alleviation in 2016-2018 in Guangdong Friend of Excellent Labor Union in Guangdong Guangdong Provincial Labor Day Award Guangdong Provincial Guangdong Model Employee's Sweet Home Industry Hanjie WU Chaozhou Branch Investment Co. Ltd. Model of Morality Expressway Co., Ltd Construction Co., Ltd Service Organization Leifei Campaign 2018 National Excellent Worker Guangdong Provincial Highway Volunteer Team of Guangshenzhu Nomination of the 7th National Volunteer Services for Learning Guangdong Communication Enterprise Four 100s Role Model Best Volunteer Guangdong Provincial Expressway Co., Ltd. Team of the Year 2018 in Transportation Team of the Year 2018 in Transportation National Labor Day Female Role Model Post National Labor Day Female Role Model Guangdong Provincial Highway Construction Co., Ltd Technical and PR Team of Humen Second Bridge Branch, National Awards Zhanjiang Branch Fengyu ZHI Industry in 2018 Production 2018 Construction Co., Ltd Transportation Industry Team of the Year 2018 in Employee's Study Room Shenzhong Link Management Center Guangdong Provincial Expressway Co., Ltd. Tianshan Branch, Guangdong Road and Bridge Construction Development Co., Ltd A Respectable Person in Transportation National Youth Civilization Unit 2017-2018 National Youth Civilization Unit 2017-2018 Guangdong Provincial Highway Construction Co., Ltd Guangdong Provincial Highway Construction

National Demonstration Post for Youth Safe National Demonstration Post for Youth Guangdong Nanyue Transport Investment and Management Team of Humen Second Bridge Branch Management Team of Humen Second Bridge Guangdong Provincial Highway Construction Co., Ltd Guangdong Provincial Highway Construction 2019

nterprise, the Party's leadership within the e for Party Building in the new era, we have strengthened Following the general requirements company operations, and and Party Building between the integration organizations, deepened Party the power of grass-roots enhance helped satisfy people's yearning for a better life. Through education for Original Aspirations and Remaining True to our Keeping our Party Buildin Pioneers for Road Construction campaign to encourage grass-rootsg Mission Firmly in Mind, we greatly promoted the the principle and Party Building in our corporate governance, supported of Party innovation, integrated all aspects of Party Leadership Youth Leagues and other organizations for them to and promoted the role of labor unions, Communist Building guiding group building, model workers and craftsmen, so that they can enhance to learn from employees We also encourage serve people. and bridge the gap enthusiasm and creativity. their professionalism and be inspired to work with Great Achievements made in 2019 made in Great Achievements Party's Leadership under the CSR Report 29 coordination for sustainable development Enhance communication and

Responsibility Management Enhance communication and coordination for sustainable development

Responsibility Governance 31 Integrated Responsibility 33 Coordination of Responsibility 37 coordination for sustainable development Enhance communication and

Key Performance Responsibility Management Market Performance Social Performance Environmental Performance Afterword

Responsibility Governance Forming a leadership team to work on Corporate Social Responsibility Report Core Values Since 2011, the Group has published a total of nine CSR reports. Assuming social responsibility Sharing development results 2008

2012

2017 2014 Clear concept Ten-year System establishment Strategic Goal Option exploration Steady practice Committing to integrating social responsibility into business practices and aiming to become a responsible and trusted Adhering to the core values of "assuming social responsibility and sharing development results", the state-owned enterprise 2015 Group exerted its influence on the transportation industry and fulfilled its social responsibility. We Compiling Corporate Social have offered guidance to the Company's employees, suppliers and customers, and all the other cor- Responsibility indicators based porate stakeholders. We are committed to assuming our social responsibility in real-life situations and Guidelines on the Formulation of aim to become a responsible and trusted state-owned enterprise. Chinese Corporate Social Responsibility Reports (3.0) by the Chinese Academy of Social Sciences

Continue to improve

Serve customers Care for employees CSR management

Communications, leading to a To become a global leader in

better life Give back to the community transportation industry with good services, good management and good reputation Contribute to the industry

31 32 CSR Report 2019 Communications, leading to a better life coordination for sustainable development Enhance communication and

Key Performance Responsibility Management Market Performance Social Performance Environmental Performance Afterword

Actively respond to national Integrated Responsibility tasks to facilitate people's travel

Encourage partners to assume their social responsibility We continued to reduce or waive toll charges for minibuses during major holidays, carry out In terms of social responsibility, the Group established responsibility management system which is focused on investment, national preferential policies on Green construction and operation of expressways. Being a pioneer and the main force, the Group resolutely implemented strategic Passage, take such measures as "ensuring a decisions and plans on infrastructure construction by Guangdong Party Committee and Guangdong government to promote safe and smooth traffic", provide real-time the economic and social development of Guangdong Province. travel information services to the public through various channels, and work hard for a Advocate a civilized and green travel Raise public awareness smooth traffic. 联合交通执法，开展保安全、保畅通

High quality service at a toll house Ensure a smooth Where: Service areas and bus stations along the Jointly build Young volunteers' traffic through Group owned expressways civilized service service activities "joint service with Support you with our transport services areas railway police" Who: Employees of the Group and the public

We encouraged expressway operation, maintenance, and What: Civilized behavior, green tourism, clean travel， service area businesses to work with road administration, and being positive traffic police and even the media to assume our social responsibility and implement our duties "to ensure a safe and How: Plan theme interviews, holding press smooth transportation" and dedicated ourselves to provide quality services, keep the traffic in good order and safeguard conferences, and make feature films and albums the legitimate rights and interests of passengers and drivers.

During the College Entrance Examination in 2019, we provided candidates with free public transit as a support.

During the Spring Festival period of 2019, through a pro-bono activity entitled Going Home with Love from Bus Stations, migrant workers took Yueyun Express to return to their hometown free of charge.

Volunteers explain waste classification to drivers and passangers

33 34 CSR Report 2019 Communications, leading to a better life coordination for sustainable development Enhance communication and

Key Performance Responsibility Management Market Performance Social Performance Environmental Performance Afterword

Actively upgrade our expressway service areas Doumen Service Area By building service areas with regional cultural characteristics, we continued to improve the management and service level of On January 1, 2020, Doumen service area of 2020 年 1 月 10 日， service areas, and completed business upgrade and transformation for 5 pairs of service areas in Yayao, Fucheng, West Coastal Expressway was put back into 广韶高速瓦窑岗服务区 Xincheng, Wayaogang, and Doumen. We have met the needs of the people for a smooth and happy travel. operation after being upgraded and renovated. The renovated service building was designed 升级改造后重新投入运 to take cultural elements of Zhuhai City into 营。改造后的服务区实 consideration and create a unique "ocean 现了人车分流，让停放 style". It diversified its businesses by adding 9 Yayao Service Area 和客流流线更加有序， brands including Aunt Beancurd Jelly, On September 29, 2019, Yayao Kasubao Auto Repair, and Loyee Convenience 还设有直流快速充电 Service Area on Fokai Expressway Store. Following the Toilet Revolution, public 桩，助推新能源汽车的 was put back into operation after hygiene facilities in the service area has also 推广应用。 being upgraded and renovated. The been upgraded and with intelligent features. construction area of the renovated service area is 5793.88 square meters. Its design incorporated features of the Wuyi area in Jiangmen. It created a comfortable space for business and leisure travel, with its public health facilities being upgraded and expanded. Fucheng Service Area

On December 31, 2019, Fucheng service area of Shenluo Expressway was put back into operation after being upgraded and renovated. The renovated service area has a total construction area of 6043.8 ㎡ with 556.8 ㎡ of landscape surrounding it. Its design adopted a style of the garden-style courtyard with blue bricks and old tiles. Travelers might feel themselves back in time and have a unique experience that they Xincheng Service Area enjoy themselves so much as to forget to leave.

On December 28, 2019, Xincheng Wayaogang Service Area service area of Shencen Expressway was put back into operation after being upgraded and renovated. The On January 10, 2020, Wayaogang service area renovated service area has a total of Guangshao Expressway was put back into construction area of 6043.8 square operation after being upgraded and renovated. meters. It incorporated both local The renovated service area has enabled the cultural and historical elements, for diversion of passengers and vehicles, allowing example, new Chinese-style parking and passenger to move in a better gatehouses and Zen-style courtyard, order. There are also DC fast chargers, which and unique business models for an help promote the application of new energy enhanced commercial atmosphere. vehicles.

35 36 CSR Report 2019 Communications, leading to a better life coordination for sustainable development Enhance communication and

Key Performance Responsibility Management Market Performance Social Performance Environmental Performance Afterword

Coordination and communication on corporate social responsibility Coordination of Responsibility Focusing on the Group's concrete work and making full use of the network, WeChat account and other traditional media and new media, we published information in a timely manner, so as to build a harmonious atmosphere for our development and establish a good company image Assessment targets of state-owned assets management as the main force in the transportation construction industry.

Shareholders Fully implement corporate governance under Party Leadership Spare no effort to effectively achieve our stated goals for expressway construction Spare no effort to deepen reform, promote innovation, speed up the process of upgrading and transitioning, and encourage diversification of business management in relevant sectors Commit to prudent and stringent budgeting and risk control so as to achieve annual production and operation goals Customers Strengthen a comprehensive budget management as well as management performance evaluation

Stengenthen supervision Improve engineering entity quality Manage and control the investment We set up a steering group to accelerate We took measures to "standardize" our project process for projects expressway construction, which held management, built our brand in quality assurance, meetings to analyze challenges and normalized our technological processes and We strengthened project internal priorities. It conducted an all-around procedures and solved common quality problems. In audit, deepened our research on auditing and supervision activities on a order to ensure the quality of core materials, machinery key routes and technological regular basis. Led by the Group's and equipments, and mold quality, we implemented plans, and enhanced investment executive members, we held meetings the Three-Two-One management model, namely, control at the early stage so as to with local cities along expressways as well three priorities, two accesses and the first item. We also control investment scale at the Internal Communication CCTV 4's interview with Shenzhong Link as relevant provincial departments to carried out Three Standards in quality inspection, root. coordinate some outstanding issues in the namely, normalization, randomization, and Guide public opinions Launch a comprehensive campaign construction projects. scientification. We followed the criteria of Zero We established a good image of the Corresponding to major projects such as the building We made use of mainstream media and Tolerances for on-site management and Zero Defects state-owned enterprises that the Group of Guangdong-Hong Kong-Macao Greater Bay new media, worked both online and for project quality. takes the initiative to assume social Area, expressway construction, and service area offline and published articles about the responsibility. We followed the Party's civilization, we launched creative events such as Group, so as to enhance the Group's polices and ideology to manage all Witnessing 40 Years of Bridge Construction - Guang- reputation and credibility, as well as to campaigns, in particular, Xi Jinping's dong Bridge Photography Creative Competition influence and guide public opinions. new era of socialism with Chinese Commemorating the 40th Anniversary of Reform and Employees characteristics and relevant policies on Opening up, at the Xinhua News Agency, People's No. of posts published highways, service areas, passenger Daily, CCTV, Nanfang Daily and other media, to stations, construction sites and other showcase the Group's achievements of its reform Employee development places under its jurisdiction. and development. 1000 Align employee development Democratic management and goals with corporate objectives Labor competition External Communication Stakeholders Participate in Corporate Governance Select and train reserved talent Job skill competition The Group values the communication The Group strictly complied with the Corporate Law They also clarified the decision-making resources with all kinds of stakeholders and is and the requirements by Guangdong Provincial mechanisms in the shareholder meetings ready to answer all questions raised State-owned Assets Supervision and Administration and board of directors in their regulations. Allocation system Care for employees Commission, developed effective governance In the Board of Directors, we included by them through the media and the "Limiting high salaries, adjusting and encourage operating model and applied standardized systems independent directors to facilitate the Group's website, so as to allow for modern enterprises. We gave full play to the medium salaries and raising low them to help each decision-making process in a scientific other stakeholders to participate in and decisive role of the board of directors, enhance the and democratic way. We strictly followed salaries" support the Company's development supervision function of the board of supervisors, and the the "regulations for listed companies" formed a leadership team including the party for disclosure and ensured the disclosed to achieve a win-win situation. committee, board of directors, board of supervisors Percentage of labor information that greatly impacts investors' and senior managers, to make decisions, supervise decisions in a true, accurate, complete unions with Employee's and manage employees in an effective way. Home at each level 100% Our shareholders in the affiliated listed companies and timely manner, for example, interim Community are involved in corporate governance, for example, and annual reports, annual caps for by attending general meetings of shareholders and continuing connected transactions, No. of Home for dividends, changes in directors, The Group and its subordinate companies have National Model Worker extraordinary general meetings. The Group's two 15 listed companies - Yue Expressway and Yueyun supervisors and senior management, maintained a good communication with the Transport, strictly followed their rules and regulations changes in ownership, intent to acquire, community and taken an active part in the public No. of Home for Provinical for listed companies and held general meetings and and monthly statements of number of Model Worker welfare cause in the community. 13 extraordinary general meetings of shareholders. shares.

37 38 CSR Report 2019 Communications, leading to a better life compliance with the law, democracy and dedication Promote a harmonious development with

Market Performance

Promote a harmonious development with compliance with the law, democracy and dedication

Customer Responsibility 39 Partner Responsibility 43 compliance with the law, democracy and dedication Promote a harmonious development with coordination for sustainable development Enhance communication and

Key Performance Responsibility Management Market Performance Social Performance Environmental Performance Afterword Customer Responsibility Encourage partners to assume Expressway Pass and "Telephone + Internet" Customer Service System their social responsibility Monitoring Center The Group's expressway customer Influence of new media app service call center (phone number: on highway travel service TOP10 96998) has integrated many services across the country such as road rescue, road condition consultation, service complaints and Influence of WeChat service customer survey into one platform. on transport industry across TOP1 the country In the area of online customer service, "Internet + convenient transportation" @ Influence of client service mobile application – Guangdong across the country TOP4 Expressway Pass, set about building Cloud-based Travel Service platform, Influence of new media so as to meet the needs of the public in streaming service across the a new era and allow customers to have country TOP4 a convenient and fast access to services anytime, anywhere. Smart monitoring system of Yanghua Expressway Information sharing or customer training

We timely published information on road conditions through Guangdong Expressway Pass and made new media programs that people and vehicle owners like.

Through online interviews and real-time road conditions report published on TV, radio and newspapers, we better Relase traffic communicated our service information to the public. information through multiple channels Effective billboards management ensures proper release of information on road conditions along the way and traffic control. Total number of real-time When important incidents and severe congestion happened, we road traffic reports, news, publish information on billboards and other channels to spread and emergencies released the news immediately. We built a three-dimensional collaborative throughout the year information release system that has integrated both old and new media, online and offline devliery, so that information can reach the public quickly. We have given 25 instructions of joint action Yuetong Card Customer on billboards and the regional billboards have published 633 Service Center information on 3232 incidents.

No. of live streaming on By analyzing historical data on traffic flow, congestion and road conditions Actively address customer complaints Monitoring Center Yuetong Card accidents during holidays, understanding patterns of road conditions in the Group's network and thus providing targeted Our customer service agents followed relevant processes Use road network research to give data to help find ways to ease congestions, we have developed a and procedures and worked with all the other functional 96998 96533 reasonable travel professional road travel guide to remind the public of travel 5 departments to handle complaints so as to protect phone number phone number advice information like rush time to help them avoid or get around legitimate rights and interests of our customers. congested road sections. We study the situation of digestion and lead the effort to make the Sketch Map of Options to Avoid Total number of cases Total number of cases Total no. of online Digestration on Main routes of Guangdong Expressways. opened, followed up and opened, followed up and interviews Customer confidentiality resolved resolved

Regarding customer complaints and reports, we By introducing Gaode Map system with congestion data, we formulated relevant rules and regulations that require 155 148366 monitor real-time situations effectively and accurately. Through a 179 supervision departments at each level strictly keep 24/7 On-duty WeChat group with Gaode, which integrated which have been resolved by working with relevant parties Manage traffic reports on road conditions, traffic control, and diversion plan from confidentiality. They can not disclose any information such flow to reduce various road sections, we timely corrected errors generated by No. of hourly traffic as the content of complaints and information about the congestion the electronic map, updated relevant guidelines and navigation reports reporter. In this way, we really protect the legitimate rights strategies accordingly in real time, so as to guide the public to of users and ensures smooth handling of complaints and bypass congested roads, balance traffic flow of the road Overall satisfaction network, and reduce road congestions during peak period. reports. 100% 1339

39 40 CSR Report 2019 Communications, leading to a better life coordination for sustainable development Enhance communication and

Key Performance Responsibility Management Market Performance Social Performance Environmental Performance Afterword

Quality management system on construction, maintenance, and transportation customer service Promote traffic science and technology research and management innovation

Engineering Projects

Four levels of quality assurance system

Government supervision Legal entity management Community watch Enterprise self-check

Cofferdam construction for offshore operation platform

The project's legal entity Respective teams and departments The company that is responsible for manages the project and is are accountable for the company's the project creates a leadership team supervised by the company. quality management. As the head of to coordinate with other departments The company that is respon- quality management, the deputy to manage quality for the project, as sible for the project is in general manager/chief engineer well as to be supervised by the Group, Investment in No. of scientific No. of provincial No. of No. of utility No. of No. of No. of charge of project quality and serves to coordinate the management quality management departments, science and projects that have and ministerial invention model industrial technical technical technology been approved or awards on patents patents design standards guidance specific quality management work for the project. The construction and management departments in the met assessment science and patents developed developed items such as project management department implements industry. criteria technology design, bidding, supervision, quality management and conducts construction, and material evaluations of quality management for supply. the project. 240 29 14 19 73 2 2 2 million yuan

Innovation system on construction, maintenance Shenzhong Link's Chaohui Expressway's Curved Pipe Curtain + Leetop Technology's Key transportation and customer service Demonstration for Research and Demonstration Horizontal Control Technology Research on Intelligent Construction Application of Lean Freezing Method for Expressway Cloud Video We value the use of tools to maintain engineering processes, The project owner set up an Innovative Technical Process and Informationization Innovation and Integration of Complete Construction Application won the first prize which in turn ensures quality that further improves the overall Award under the category the High Quality at Good Price so Collaborative Key Technologies for the Technology of Shallow of 2019 Guangdong Intelligent standard. We encouraged all parties involved in the as to evaluate these awards, which helped fully mobilize the Management Construction of Highways in Buried Super Large Transportation Science and construction to actively promote mechanized, intelligent enthusiasm of all parties to participate in the micro-innovation Application won the Offshore Mountain Areas won Section Dark Control Technology Award construction as well as advanced and applicable of new technologies, new processes, new products and new Special Award of the first prize of China Tunnel on Zhuhai Transportation BIM Highway Society's Science Connecting Line of Hong technology. materials, which has achieved good results. Engineering Innovation and Technology Award in Kong-Zhuhai-Macao Award given by China 2019 Bridge won China Highway Society Transportation Passing rate of evaluation on construction, maintenance Association's First Prize of and transportation customer service Technology Achievements in 2019

In 2019, a total of 42 road sections Expressways managed and Goal: going "smooth, safe, were checked randomly for daily maintained by the Group comfortable and beautiful" Composition of technical staff in the Group maintenance. Altogether, a total Percentage of excellent Percentage of length of 840 lane kilometers was roads with smooth surface excellent bridges No. of No. of No. of No. of No. of Unappointed checked, with an average crack technical staff employees employees employees with employees with senior with vice intermediate with entry level repair rate of 87.8% and an excellent position senior position position position rate of 82% after the repair. The 99.5% 99.9% average PCI index of 840 lane kilometers was 91.3, of which 70% of 8007 93 1478 3143 2315 978 the road length is Excellent.

41 42 CSR Report 2019 Communications, leading to a better life coordination for sustainable development Enhance communication and

Key Performance Responsibility Management Market Performance Social Performance Environmental Performance Afterword

Partner Responsibility

Sharing mechanism and its platform

Strategic collaboration Data sharing

We have signed a strategic cooperation framework The Group entrusted United E-Service Co., Ltd. as the unified agreement with Zhuhai Economic and Technological interface unit for data sharing and exchange between the Development Zone Management Committee and Foshan Group and Traffic Management Bureau of the Provincial Public Municipal Government. Security Department, and was responsible for the data resource sharing and exchange between the Group and We continued to promote the strategic cooperation Traffic Management Bureau of the Provincial Public Security between Guangdong Radio and Television Network Co., Department. Ltd., Guangdong Communication Industry Service Co., Ltd., Huawei Technologies Co., Ltd., Guangdong Branch of China Tower Co., Ltd., and China Mobile (Shanghai) Information Communication Technology Co., Ltd.

Concept of business integrity and system security Construction of Steel Sheet Piles for Cofferdam of East Artificial Island and Tunnel Project of Shenzhong Link

Toll charges management should follow the principle The Group's value chain and the impact of responsibility that "no collection if it is supposed to be exempted We fully implemented all kinds of decisions and plans by the maintenance bases, and improved the quality of whereas no evasion if it is supposed to be collected". central and provincial governments, strengthened the social maintenance, intensification and specialization. In responsibility of state-owned enterprises in transport industry, addition, we established a sign system for brand enhance service features, pushed forward the modernization recognition to enhance the public awareness of Compliance rate of economic contracts of transportation in Guangdong, practiced people-oriented Guangdong Highway Maintenance Base. principle, deepened reform, made all efforts to speed up While ensuring a good technical condition of the Group's expressway construction, focused on improving transport When concluding economic contracts, we strictly expressways, we provided high quality services to the Compliance rate of service quality and successfully completed all types of tasks. followed regulations and policies on tendering and expressway construction public in such areas as information guidelines, traffic contracts on expressway We identified hidden dangers in highway tunnels and bridges safety security equipment and greening so as to better bidding as well as contract management. In its construction, daily 100% and found solutions for them, carried out safety assessment highlight the social value of the Group regarding road implementation, we worked hard to follow procedures, maintenance and special standardize processes, organize contract follow-up and maintainance projects for speed limit adjustment in each road section and network services. ensure contract compliance. conducted cross-project technological review to ensure that Length of expressways Length of expressways Compliance rate of our roads were in good condition. expressway construction directly managed and maintained contracts 100% The Group's expressway maintenance management has maintained by the Group gradually transited from traditional maintenance to modern Purchasing responsibility maintenance, from increasing the quantity to improving quality of our services, from the role as a manager to the role as a 6792 7861 The Group revised and issued the Expressway Hierarchical Management. The group is in charge of the service provider. We paid more attention to make km km Maintenance Project Tendering and Bidding Management guidance, inspection and supervision of the tendering and expressways safe, fast, convenient, and environmentally Measures of Guangdong Communication Group Co., Ltd, bidding work and the owner, which is the secondary friendly. We promoted the planning and standardization of the which clearly stipulates that, except for daily maintenance company, do the coordination and management work, and that might extend an invitation to bid, all special the company for the road section project is responsible for maintenance projects must call for bid. The tendering and the specifics of tendering and bidding. Fulfill social responsibility through bidding activities should be open, fair, just, merit based, value chain honest and trustworthy, under Centralized Leadership and

Use Four Separates and One Unification policy to make purchasing decisions

Assign the four tasks, namely, The implementation of Completely improve the Edit and revise relevant Adher to green maintenance, advance purchasing, pricing, quality contacts, budgeting and Group's standards of main- policies and regulations ecological and civilized construction, Four inspection, and payment One payment were managed in tenance management, and on highway maintenance promote new energy-saving technologies to Seperates Unification settlements, to different a centralized way. strengthen the construction and management reduce energy consumption and develop people, who can not interfere of talent team the concept of "innovation, coordination, each other's business. green, open and sharing"

43 44 CSR Report 2019 Communications, leading to a better life risk prevention and control Build security mechanism with

Social Performance Build security mechanism with risk prevention and control

Corporate Responsibility 45 Employee Responsibility 48 Safe Production 51 Community Responsibility 53 risk prevention and control Build security mechanism with Key Performance Responsibility Management Market Performance Social Performance Environmental Performance Afterword

Corporate Responsibility Compliance with laws & regulations

Governance to Operational Compliance ensure compaliance compliance management

Organizational structure

We set up the position of the General Counsel, who attends the meetings for the Board of Directors and general managers as well as other important decision-making meetings for economic activities. The General Council is able to give separate legal advice. Legal Affairs Contract Regulations on the Management Management Administration of The Group's headquarters and its important Methods Legal Affairs sub-enterprises have their independent legal Measures (Legal Advisory Paper) Training on anti-corruption and a clean government institutions or legal advisers. Improve Party conduct and combat corruption The Group's Party Committee and Committee for Discipline Inspection (CDI) firmly implement the requirements of the Party Law compliance training Central Committee for comprehensive and strict governance of the Party. With the Party Committee as the subject of liability and CDI in charge of supervision of the the work to rectify the Party's style and to ensure a clean government, we took advantage of the opportunity of the disciplinary inspection reform to push forward the development of the Party's exercise of strict self-governance, by focusing on the Group's major tasks, promoting the creation of the Three-Noes Policy (no guts to corrupt, We have intensified the training for the Group's no conditions to corrupt, and no desire to corrupt), and strengthening the landslide victory in our flight against corruption. legal staff, consolidated and shared training resources of the Group, and organized at least one No. of training sessions centralized training for legal staff in our affiliated for legal staff of the Group enterprises every year. The Group's headquarters attending in a year and affiliated companies continued to innovate the way to enhance legal awareness in light of their own No occurrences actual conditions, and carry out special legalization 10 of major no less than twice a year. misconducts in the Group in 2019

Enterprise risk management Strengthen supervi- Strengthen Strengthen Strengthen work Strengthen eduction sion and restriction discipline and corporate style construction for integrity mechanism accountability supervision Resolutely Make greater Focus on the Develop a Continue to Work hard to meet the implement the efforts to evaluation of preliminary risk revise and adjust requirements for Give full play to the Practically conduct Focus on the Carry out special Follow the theme of supervision of the investigation of supervision of key inspections on the "remaining true to our provincial actively mitigate internal control management the system, with financial risk steps, key areas, Group's two poverty prevention and "multi-in-one" big reported cases, original aspirations SASAC's and respond to and effectively assessment its management supervision carefully implement and key posts such alleviation tasks as and keeping our instructions on various take corrective indicator system mechanism control, as the few people well as special comprehensively mechanism such as the work who are in charge, rectification work mission firmly in prevention of business risks measures for and continue to officially put into carry out discipline inspection, requirements of Four Three Importants such as 5 + 3, Four mind", carry out major risks, internal control improve the operation performance patrol, audit, Forms and Three and One Big Styles and other style Discipline Learning effectively deficiencies Group's abilities evaluation of special appointing Divisions of decision-making issues, misconducts Month activities, hold control four of risk financial funds, and supervisors, finance, supervision and matters, resulting in loss of special meetings on and legal affairs, and enforcement, improve engineering state-owned assets, alerts and warning, major risks such management complete the construction "looking back on" self-assessment of earnestly implement the accountability for and timely publish as financing and internal the rectification of enforcement, and projects, financial rectification, so as to typical cases of debts and control government capital management, talent further establish and repayment of feedback from give full play to the selection and improve the misconducts so as to achieving the expressway projects inspections, audits deterrent effect of appointment, and long-term teach many Party expected goals and refunds of toll and board of case handling and implementation of mechanism of style members a lesson. supervisors. investigation. the spirit of the eight construction. income regulations of the Central Committee.

45 46 CSR Report 2019 Communications, leading to a better life risk prevention and control Build security mechanism with Key Performance Responsibility Management Market Performance Social Performance Environmental Performance Afterword

Corporate compliance performance Employee Responsibility

Group headquarters and its subsidiaries Use both routine and intensified check to reduce risks of non-compliance, establish and improve early warning mechanisms and regular risk check mechanisms for major Company rules and regulations legal disputes, and actively deal with various litigation and Economic contracts arbitration cases. Important decisions on operations Total amount of Three audits financial loss recovered 100% or avoided 153 million yuan

Total amount of financial Total tax paid by Tax paid loss recovered or avoided the Company 4363 million yuan 918 million yuan

Respond to national policies

Increase the coordination of According to strategic plans by the Organize and implement the work of expressway operation and provincial Party committee and the toll exemption during major holidays management, and proceed provincial government, for example, the in a considerate way to ensure a in an orderly way with toll Three Major Ecological Projects, we smooth traffic, continue to carry out Happy empolyees collection completely based improved our design standards for special operations to combat toll Democratic managment on weight, ETC national landscape greening along the line when violations, comprehensively use network toll collection doing our expressway construction off-site measures to enforce the law in Employees growing with the enterprise and toll collections. projects, ensuring the greening rate on toll booths, which led to a substantial Work contract Employee collective expressways. decrease in oversize/overloaded Adopt a people-oriented approach, implement signing rate contract signing rate vehicles. democratic management and supervision, establish Worker's Congress, which includes employee board of Policies and measures that directors and employee board of supervisors, and 100% 100% Comprehensively promote performance assessment for all employees, collect employees' feedback ensure employment and (or) establish and innovate the mechanism of incentives and restraints, verify, Percentage of Clarify the relationship between employers and union workers help increase employment implement and follow up on the recruitment plan. employees according to law Follow a talent selection system that is open, fair and Recrutiment during the period based on merit, and continue to improve talent 100% of CSR report selection and recruitment mechanism Collective bargaining Social insurance Make great efforts to provide employees with a fair and collective coverage The Group conscientiously implements the working environment, a rich cultural atmosphere, a contract coverage unified deployment plan from higher complete welfare salary system and an improved authorities to stabilize employment, and employee development prospect actively fulfills the responsibilities for 100% 100% state-owned enterprises Training on occupational Percentage of the Occupational injury prevention No. of employees hired safety and health employees with systems and measures physcial examination and medical records For transportation and construction departments 5304 and others that have a relatively high likelihood of causing injury, we established special safe In order to further increase recruitment on production management office and assigned campus, the Group took the lead in organizing Employee orientation professionals to train employees on safe directly affiliated units to carry out campus Continuing education for production. recruitment for fresh graduates from colleges technical staff We purchased injury insurance and accident and universities. Training for all members insurance for employees in the road administration on safe production 100% office and those who operate special equipment. No. of recent graduates hired 934 Health education provided The labor union will visit injured employees and by Labor Union call for other employees to donate and help the injured employee.

47 48 CSR Report 2019 Communications, leading to a better life risk prevention and control Build security mechanism with Key Performance Responsibility Management Market Performance Social Performance Environmental Performance Afterword

Employee's career path

We promoted Dual Channel construction for employee’s career development. Two pilot projects were conducted in Leetop Technology and Hualu Company. After surveys on their projects were done, these two companies are working together to explore the next step for Dual Channel construction. Helping Caring for employees employees

No. of employees/ No. of role No./times of cultural No./times of No. of employee times the Group models/times events for employees sports events audience or times for has visited visited them to attend Employee training system 6192 264 519 955 80311 deepen training and education so as to improve employee performance

conduct training sessions in a planned, Provide special care for special groups targeted and scientific way (for example, pregnant women and breastfeeding women) The Group's education We follow relevant national regulations and guarantee the We continued to take measures to protect special groups of and training develop annual training plan for each legitimate rights and interests of special groups such as people in service areas. First, there are family restrooms in pregnant women and breastfeeding women. Female each service area, which are used by those who need a department to implement workers enjoy maternity leave according to the standards separate restroom (for example, family members, one of the set in national regulations. Their salary and benefits during person in the group cannot take care of himself, and people Employee professional training programs maternity leave are not affected. Breastfeeding female with disabilities); second, there is mommy's room (nursing employees have one hour each day to breast-feed their home), where it has sofa, TV, nursing area, bookshelf and We incorporated the employee professional training into Guangdong Communication Group's Administrative babies who are under one year old. We also offer baby changing tables. It helps women who breast feed their the overall employee education and training plan, Measures for Staff Training Management took effect employment opportunities for those special people who are babies and women with children. followed the spirit of national and provincial regulations on on March 1, 2018. The Group promoted the capable to work. professional education, focused on our main business institutionalization and standardization process of its tasks and strengthened employees' skills through staff training management system. continuous education so as to promote enterprise development at present and in the future.

Employee training performance

Carefully Share information Hold special Actively conduct Focus on training implement training on the Party's and workshops for the training on professional and plans from higher national policies in Group's young professional skills technical personnel, authorities. a comprehensive managers. and business and continue to way. deepen the occupational reform.

Total amount invested in No. of people/times employees No. of people/times employees No. of people/times training sessions is participating in the study sessions on participating in the training on employees participating in about Guangdong-Hong Kong-Macao Greater professional skill and business training sessions organized Bay Area Development Plan Outline by higher authorities

32.93 >10000 > 50000 166 Cozy Waiting Room Nursing room million yuan

49 50 CSR Report 2019 Communications, leading to a better life risk prevention and control Build security mechanism with Key Performance Responsibility Management Market Performance Social Performance Environmental Performance Afterword Safe Production Education and training on safety Safe production management system Tutorials for Safe Highway Construction Tutorial produced by Three Managements and Three Musts Nanyue Transport Investment Company and other organizations won the only first prize in the 2019 China Highway Society Science and Technology Award under the The chairman, Party secretary and the general category of popular science. manager are responsible for safe production. Each department lead is responsible for the safe Safety training performance production in their department. They should fulfill their safety responsibilities as well We continued to work hard on the training of full-time safety as their regular job duties. production management staff and Charge Person of each company. In particular, we focused on improving employee's knowledge and skills on safety. We Invited experts from the In 2018, the Group made a big revision to its Ministry of Transport and the Provincial Emergency regulations on safe production, developed and Management Department as guest speakers. issued the Provincial Communication Group's Supervision and Management Measures on Safe Production, as well as 7 implementation rules Charge persons aat the three phases participated (namely, safe production risk management, safe in the training on safe production production cost management, training and nearly education on safety, hidden dangers,accident No. of Charge No. of staff participating managment for safe production, internal industry Person participating in safe production material management, assessment and regulations in the training management training 1104 on rewards and disciplinary sanctions for safe sessions production accidents), which was officially Safe production management system No. of business backbones participating in safe implemented on June 1, 2018. 239 production training 178 Hold all parties Promote standardization Establish a dual mechanism of to manage risks accountable management on safety and hidden dangers Procedures for accident handling Safety emergency management Fully implement the work to Treatment measures to handle mechanism establish safe enterprises After the accident, the contractor shall immediately take quality issues emergency measures (including suspending the project if On May 22, together with Guangdong Department There were no fire accidents throughout the year, nor accidents necessary), and immediately fill out the Quality Accident of Transportation and Yunfu Municipal Government, related to safe production due to poor expressway management Report and submit it to the Office of Supervision. Return for Strengthen we organized an emergency drill for toxic chemical and inadequate safety facilities. repair handling accidents in Shiyashan Changda Tunnel on Yunwu After receiving the quality accident report, the Office of

Procedures to handle engineering quality accidents Supervision shall immediately organize on-site inspections Expressway, with more than 100 people from the Highway Group's subsidiaries to observe and learn from the Vehicle logistics and provide guidance to fix the issue according to the actual construction condition. drill. It achieved the expected results. We used this Discard Limit use Rework emergency drill as a blueprint, and developed No. of accidents per No. of accidents Following the instructions of the supervising engineer, the templates for Comprehensive Emergency Plan for 100 million yuan per one million km investment contractor should immediately take corresponding measures Operational Highway Production Safety Accidents, to find out the cause of the accident and submit the plan for Special Emergency Plan, and Site Disposal Plan, so corrective measures to the Office of Supervision, copied to the as to further standardize the compilation of project management office and other departments involved. emergency plans on operating road sections and to 0.0019 0.0017 Four Prohibitions when handling accidents improve the feasibility of emergency plans. For major or extraordinary quality issues, the Office of

Supervision should immediately report them to the project Prohibit not finding Prohibiting not educating Statistics of emergency drills management office. reasons for accidents those responsible for conducted by the Group in 2019 accidents and other people involved in No. of emergency drills Total amount invested in The project management office may organize a joint accidents emergency drills investigation team including relevant parties to identify the Treatment cause, submit an accident handling proposal, fill out the Form measures for Quality Issues and Suggestions for improvement, and send a copy to all departments concerned. 1337 million yuan 8.8767 No. of people participating Amount invested in safe When the cause of the accident cannot be ascertained and the Prohibiting not holding Prohibit not putting in the drills production Office of Supervision believes that the hidden danger has not people in charge feasible corrective been eliminated, it will not allow the project to resume or it will accountable for measures in place pause the construction again. The Office will not give the green accidents light to the project until they identify the cause of the accident. 51640 5.26 million yuan

51 52 CSR Report 2019 Communications, leading to a better life risk prevention and control Build security mechanism with Key Performance Responsibility Management Market Performance Social Performance Environmental Performance Afterword Community Responsibility Guangdong Yueyun Transportation Co. Ltd.

Socially responsible projects that the Group has developed or supported

Promote the economic and social development of local communities by supporting community members to start businesses and enjoy public facilities that the Group shares with them.

Kee Kwan Motor Road Co. Ltd.

No. of No. of average No. of service stations No. of star-rated No. of various vehicles No. of high-level high-level bus bus stations in universties in hotels for passengers and passenger stations stations Guangzhou and Zhuhai logistics operated with other companies 2 1 7 3 594 1

The first open service area featuring cultural tourism in Guangdong

On February 1, 2019, Dahuai Service Area of Kaiyang In the service area, there are buildings, digital parking Expressway, the first open service area featuring cultural lots, aviation hall and other supporting facilities. It is tourism in Guangdong Province, opened and served an open service area with cultural characteristics, people during the 2019 Spring Festival with a new image. including catering, leisure, entertainment and This also marks a new era and will definitely lead a new shopping. It provided a place for relaxation and leap in terms of service areas' transition "from parking areas created a life experience with no need to travel nor to to commercial blocks, from travel stops to tourist wait. attractions, from gas stations to culture and leisure spots."

By dispatching more than 70 vehicles for passengers and Kee Kwan has been providing relocation services for cargo, together with over 120 staff members, Kee Kwan students at Sun Yat-sen University for 19 consecutive worked with China International Liaison Office in Macao to years. transport participants during the celebration of the 20th anniversary of the return of Macao.

Ministry of Transportation's trial project of Yueyun Transport's award ceremony for the Driver's Home Best Driver and Top 10 Teams Driver's Home of service areas in Houmen, Hengshishui and Xuwen

Local Purchasing Dachao Project Yunmao Expressway

Macao Public Security Police In accordance with the construction contract Dapu County Government By introducing high-quality awarded Kee Kwan Motor Road of each project, we adopted local set a reasonable price for professional dry mortar production Co. Ltd. Law Compliance and purchasing policy to buy major materials sand in river dredging line, the project has continuous People Protection Medal. such as gravel, river sand and diesel except and used it exclusively for production mechanism of sand for some self-supplying materials such as the construction of gradation with stable quality, and cement, steel, steel strands and asphalt, Dachao Project. the mixed concrete is better in which were purchased by the contractor. strength and quality.

53 54 CSR Report 2019 Communications, leading to a better life risk prevention and control Build security mechanism with Key Performance Responsibility Management Market Performance Social Performance Environmental Performance Afterword

2019 Guangdong Poverty Alleviation Transport industry leads poverty alleviation campaign Donation and Public Welfare Day activities

Poverty alleviation and social welfare Total corporate donations 12 million yuan

On December 18, Xiaohua DENG, Secretary of the Party Committee and Chairman of the Board of Directors, led a team to visit Shanhu Village, Jinhe Town, Jiexi, which is the Group's poverty alleviation target. The purpose of the visit is to check its infrastructure construction as well as its work on alleviating poverty through industry development, and Party Building. They also randomly visited some poor families.

On December 24th, Xiaohua LIU, deputy secretary of the Party Committee and general manager of the Group, went to Shanhu Village to inspect the work on targeted poverty alleviation. He and his team visited some poor households that the Group paired with in order to understand how poverty assistance measures were implemented, and how their lives and work were affected. Then they visited the Party Rural Revitalization Bus Line Building Service Center and Education Base which are the Group's planned projects. With the strong support of the Provincial Communication Group, Qingyuan Yueyun Express share the same concern as the people and invested 3 pure electric buses with new energy to open the the Rural Revitalization Bus Line, starting from Lianzhangcun Central Station and Yingde Bus Station, passing through 15 stations such as Qiuchong Station and Shawan Hewan Station, with a total length of about 40 kilometers and a travel time of about 1 hour. It runs 16 times a day, leaving at 7 am and closing at 6:30 pm. Bus fares are based on travel length, ranging from 2 yuan to 13 yuan. The pick-up and drop-off stops are fixed places along the way. It provides safe, comfortable and convenient travel services for local people.

pure electric buses with new energy 3 15 bus stops 40 km of travel length 16 shifts/day

Visit elderly people Help employees with difficulty

55 56 CSR Report 2019 Communications, leading to a better life risk prevention and control Build security mechanism with Key Performance Responsibility Management Market Performance Social Performance Environmental Performance Afterword

Work on the front line to combat the COVID-19 pandemic

In the face of the sudden COVID-19 pandemic, the Group formed 45 temporary Party branches and 887 emergency pandemic prevention volunteer service teams. Together with the public security, transportation, health and other departments, we established 1055 individual temperature check points at the provincial borders, toll houses, service areas and passenger “Mask Face” stations. Tens of thousands of Party members and the ordinary people followed the call, moved forward in headwind, and created iron walls to fight the pandenmic by doing our duties. All for you to guard our "gate"

In order to contain and manage COVID-19, the Party members of Jingzhubei Branch established a pioneer team, a maintenance and cleaning team, an emergency rescue team, a volunteer service team, and a PR team.

Yongtao WU was a veteran who participated in the fight against flood in Hubei in 1998. Today he is on the front line to fight against the pandemic to assume his responsibility as Zi CHEN a veteran in time of national crisis. Road Administrator

Wenhao DAI Hui CHEN is a toll collector team lead. His wife Cuiting HE is a Toll House Director nurse in Hunan Aerospace Hospital. This young couple, in their mid twenties, chose to live in different cities with thousands of miles apart, in order to do their duties.

The sun burned your face, distressing yet touching. The mark on your face tells the most moving story of the year. Thank you all, for your warm smile and firm look in times of crisis. Thank you all, for staying on the front line to combat the pandemic day and night, and for remaining true to the mission, protecting and empowering us all.

57 58 CSR Report 2019 Communications, leading to a better life risk prevention and control Build security mechanism with Key Performance Responsibility Management Market Performance Social Performance Environmental Performance Afterword

Happy travels through our services Reopen economy and return to work on key construction projects

Guangdong Department of Transportation visited Provincial key expressway construction projects 27 Yueyun Transport on a field trip to do research on their work to combat the pandemic after Take measures according to safety guidelines and return reopening production. The Department issued to work in an orderly manner. the first batch of Help Reopen Economy Lingnantong Transportation Cards, entrusting Yueyun Transport to distribute them to migrant workers who can ride Yueyun Express free of charge. The Department also gave goods and materials needed during the pandenmic to representatives of Yueyun drivers.

Through inter-provincial end-to-end chartered transportation, Yueyun Transport helped people return to their work and reopen economy. The chartered buses went to Yunnan, Guizhou, Sichuan, Guizhou, Chongqing, Henan and other provinces to pick up migrant workers to return to Guangdong province. This is a solution for such issues as being difficult to reopen economy and hire workers, and for migrant workers to return to Guangdong during the pandemic.

Shanwei Yueyun Company followed instructions from the Municipal Human Resources and Social Security Bureau and the Municipal Transportation Bureau to dispatch 41 buses to Shanwei High-speed Railway Station to pick up the returning workers to their workplaces.

Zhaoqing Chengdong Yueyun Bus Station drove students from Zhaoqing Technician College to Dawang Reopen restaurants in High-tech Zone safely, helping students to intern and service areas solve the issue of labor shortage.

Restaurants in service areas have taken safety measures in order to reopen business in an orderly manner. Passengers can choose to dine in, or through "touchless" take-out service. Zhaoqing Gaoyao Yueyun Bus Company Meanwhile, the variety and quantity of dispatched 24 pure electric buses with new unmanned counters in service areas are energy to timely solve the problem of commuting adjusted, with more fast foods such as to work for employees in Mugang District and instant noodles, biscuits, and drinking the travel problems of people in towns such as water, so that passengers can have Lubu, Lecheng and Hetai. more options.

57 58 CSR Report 2019 Communications, leading to a better life Jointly build ecological civilization and protect environment by energy conservation 61 65 68 69 Green Operation Green Business Green Products Green Ecology Environmental Performance Environmental Jointly build ecological civilization and ecological civilization Jointly build protect environment by energy conservation energy conservation by protect environment

Build security mechanism with risk prevention and control environment by energy conservation Jointly build ecological civilization and protect

Key Performance Responsibility Management Market Performance Social Performance Environmental Performance Afterword

Green Operation Protect environment and conserve water in our projects Build organizational structure and institutional system for environmental management

Zihui Project The first group of Before construction During construction After construction demonstration projects and a founding project for green We set up management teams We strengthened environmental monitoring and We paid particular highway construction in on environmental protection protection during the construction and carefully attention to environmental Guangdong and water conservation. We implemented measures on environmental protection and water also entrusted professional protection and water conservation. In particular, conservation, focusing on Introduce an integrated consultants to undertake we focused on monitoring various sensitive controlling traffic noise, Huiqing Project assessment of environmental issues on environmental protection and water management system that The second group of Apply green road impact and develop water and conservation, so as to identify and solve air pollution and water includes occupational health, demonstration projects for requirements in the whole safety and environmental soil conservation plan, which problems in a timely manner. This way, we are pollution. green highway process of project design, protection (HSE) to construction in construction, operation, and were then submitted to able to prevent issues beforehand, control construction in the whole Guangdong management competent departments at a situation during the process and evaluate quality process higher level for approval. afterwards.

Develop implementation plan Rules and regulations on Hualu Project Meizhou East Beltway Dafenghua Project environmental protection and Make every effort to speed up the Ingeniously refine the local cultural Mainly monitor ecologically sensitive water conservation in construction of slope protection as characteristics and set the design (vulnerable) areas and ensure the Implementation Rewards and Management Plan Regulations Sanctions construction contracts well as the greening and drainage theme for the landscape of the east in-situ conservation in interchange for environmental for environmental for environmental project for the space under the bridge beltway as Hometown for General Ye area, top of slopes and top of tunnels. protection protection protection in order to reduce slope erosion due with the fragrance of plum blossoms and soil/water and soil/water and soil/water Prevent air to rainfall, which leads to the loss of spreading enchanting aromas. conservation conservation conservation pollution soil and water as well as river water pollution. Restore vegetation Guangzhongjiang Project Huaiyang Project Hehuiguan Project

Three simultaneous Manage Enable green recycling, low-carbon Following the construction principles of Set up a special bridge cross the Design Construct Put to use noise Protect energy-saving and emission-reduction Standardization, Innovation, Greenness Fengshuba Reservoir to avoid working actions for water and simultaneously simultaneously simultaneously environment measures to be scaled up in a and Benefiting people, the project in water which disturbs the natural soil conservation in temporary systematic way in highway construction, effectively contains the impact of the environment of the reservoir, and build a construction so as to lay a solid foundation for the remaining problems after the completion tunnel throughout the protected area sites comprehensive construction of a green of the roadbed on local ecological with a 212m-long passage for wild recycling, low-carbon transportation environment and water system. animals to pass through. system.

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Key Performance Responsibility Management Market Performance Social Performance Environmental Performance Afterword

Environmental emergency preparedness Training and education on Green office performance and response mechanism environmental protection The lighting in the Group's offices has high luminous effica- Hold training sessions on environmental protection for all cy, good color rendering, long life cycle, appropriate color Apply risk prevention and emergency projects prior to commencement of work and ensure that temperature, and environmental friendly. This greatly measures to ensure the safety of drinking supervisory departments include professional engineers reduced the maintenance fee of lightening and saved water. on environmental protection, who need to assume the energy. In large office areas, lobbies, corridors, lift lobbies , post with corresponding licenses. we used preprogramed automatic switching system to con- Prohibit vehicles transporting highly toxic trol the lighting. The lightting can be adjusted according to substances from passing through the various working scenarios and control in different groups. water source protection area. Guangzhongjiang Project The sensor control functions ensure that "light on when people in, light off when people out". By using the sensory Strengthen guardrails of highways and Through regular events such as training sessions on equipment to detect the brightness of light automatically, bridges. green cycle and low-carbon transportation as well as the system can offer minimum lightening when nobody meetings to exchange technology and experience, the works there. In large office areas, lighting control is based Set a completely closed drainage project ensures that its education and training systems on the intensity of light so that we can make full use of natu- collection system for bridges located in include knowledge on green cycle and low-carbon ral light. the water source protection area. transportation.

Online Meeting Dafenghua Project (Fengshun to Wuhua Section) Total investment in environmental Material System protection Hold training sessions on environmental protection for all projects prior to commencement of work and ensure that supervisory departments include professional engineers The Group's headquarters used electronic conference on environmental protection, who need to assume the system (conference assistant). All materials that are sub- 580 million yuan post with corresponding licenses. mitted for meetings for review or need to be reported at meetings are digitalized, which greatly reduced the print- ing cost of meeting materials so as to create a green office environment.

Green office measures

The temperature of air-conditioning in the office area should not be lower than 26 degrees in summer. Ener- gy-saving lamps are used, which will light off when people leave. The office area promotes recycled domestic water, paperless and/or two-sides printing, office trash classifica- Disclosure of environmental information tion system and online meetings to reduce employee travel.

There are two methods, online and offline, to Reducing energy use due to business travels publish the report on the study of environmental protection before construction, depending on Based on the existing facilities and equipment, making the the local area's economic development, in Group's headquarters as the center to support the overall which online announcements are conducted framework of multi-point high-resolution video conference twice, and announcements are posted where system, we conducted a project to build e-conference there are most people who will be impacted by system that enables the Group headquarters, second-tier the project. and third-tier subsidiaries to have a total of 110 online meeting rooms deployed, where audio and video confer- ences can be held. This will help improve work efficiency while at the same time reducing energy consumption due to business travels.

Pilot project of Photovoltaic Shed at Shizheng Management Center of Pingxing Expressway

It is a demonstration project that applies the concept of green and sustainable development on management by consuming electricity in local areas, expanding the use of clean energy, reducing carbon emissions, and avoiding Leetop Plaza redundant construction through multiple use.

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Each project fully applies the concept of green development on Measures and performance of waste Green Business construction, by adopting the method to "build both roads and land, balancing both short-term needs and long-term needs", Total energy consumption product recycling and putting temporary construction facilities in the context of local construction planning. It enabled better access to passages and throughout the year Yangmao Reconstruction and Expansion Project Build Energy Management System more effective use of land resources, while greatly reduced the impact of temporary land use and forest use on local ecology. Excavate subgrade waste soil, mill old pavement materials, Standard coal equivalent/10 demolish old masonry concrete buildings, build traffic facilities thousand yuan output and green spaces alongside the expressway. Hailing Island Bridge Project The project adopts a general Zihui Project, Huaiyang Project The project puts temporary Use stabilized crushed stones as replacement materials for soft contracting mode for design and construction, accelerates construction in the context of local planning, reduces the soil or desilting. the design cycle, links the design phase to the construction newly added temporary land occupation; screen and 739782 tons phase, and achieve obvious economic benefits from value process waste slag in the tunnel for the production of Curb rocks of the old road can be used to pave curbs by the road, and the gutter of the drainage ditch, the cone slope of the engineering or cycle life cost. machine-made sand, gravel and other materials, which masonry masonry stone, and the masonry stone at the entrance removes waste slag while effectively reduces shortage of of the culvert can be used for protection and drainage works. Xingshan Project The project adopts a plan to pre-compress supply; and make full use of land resources by properly The dismantled traffic safety facilities can be used as guardrails handling and coordinating the usage of earth and stone in water bags by means of rubber-sealed water bladders, and on both sides of the overpass ramp, and the guardrail and door avoids waste of resources as well as long-distance transpor- local areas from high to low places without transferring Regulations, measures and technologies frame foundation can be used as replacement materials after tation so as to greatly reduce energy consumption. them across ditches. to reduce waste discharge being crushed. Precious tree species and large trees can be partially transplanted. Zihui Project In order to reasonably use its resources, Comprehensive Energy Use for Construction Project's Output the project had waste residue screened and Policies, measures and technology to cut processed for the production of machine-made sand and gravels so as to remove waste residue and emissions Hailing Island Bridge Project Energy consumption during con- Xingshan Project Energy consumption during construction reduce the number of residue pits. Soil to remove silts At construction sites and access roads, we sprinkled water on struction mainly reflects the use of fuel and electrical energy mainly reflects the use of fuel and electrical energy primar- on the main line was used for slope greening, land site so as to effectively control dust. primarily in 6 types of engineering projects, including road- ily in such engineering projects as roadbeds, pavements, reclamation and farmland reconstruction. Wasteland When being transported and stacked, powdery materials for road beds, pavements, bridges, traffic safety, electromechanical, bridges, and tunnel projects. Based on the number of proj- soil were used for soft foundation replacement. construction such as cement and stone chips should be covered. and housing projects. Based on the number of projects, it is ects, it is calculated that energy consumption during the They should be mixed centrally to reduce air pollution. calculated that the annual energy consumption of this project construction of this project is 323.34 tons of heavy oil, Kaiyang Construction and Expansion Project Its route is Central mix plant method is adopted for asphalt mixture.The is 2.8 tons of gasoline, equivalent to 4.17 tons of standard equivalent to 461.94 tons of standard coal; 99.14 tons of very similar to the old road. By using existing facilities mixing machine is equipped with dust removal equipment and coal; 14.83 tons of diesel, equivalent to 21.61 tons of standard gasoline, equivalent to 145.98 tons of standard coal; and avoiding waste, it reduced its impact on the local the mixing field is far away from the residential area. water system and road network. The project recycled coal; 0.59 tons of raw coal; 230,400 kwh of electrical energy, 6651.42 tons of diesel, equivalent to 9691.8 tons of stan- Asphalt mixing station uses natural gas or diesel as its equivalent to 277,400 tons of standard coal; and water con- dard coal; 5.08 tons of raw coal, equivalent to 3.62 tons of and processed materials that were generated in the combustion material. Heavy oil is prohibited. sumption 14273.08 tons, equivalent to 1.22 tons of standard standand coal; 4.1468 million kwh of electrical energy, process and used them in Three Reforms projects, material replacement, and drainage structure. Old We adhered to standards in our design.Parts are prefabricated, coal. Total annual energy consumption is 55.33 tons of stan- equivalent to 508.5 tons of standard coal; and water con- which has effectively reduced atmospheric pollution during the dard coal. sumption 486,200 kwh, equivalent to 41.66 tons of stan- asphalt pavement materials were processed for the the asphalt structure layer of new pavements. construction period. dard coal. Fume purification devices are installed for each service area and station along the expressway to ensure that fume exhaust gas meet the expected requirements in inspection.

Kaiyang Construction and Expansion Project By improving production efficiency of centralized processing site, con- solidating equipment resources, reducing engineering investment and waste, and cutting down on the number of mechanical shifts, it reduced exhaust emissions. It recommends that combustion materials for asphalt mixing stations be natural gas, diesel or changing coal to gas, and reduce the use of heavy oil .

Systems, measures or technologies to reduce wastewater discharge A large amount of excess mud is piled up and landfilled in the bridge foundation construction. Multi-level sedimentation tanks are set up, and domestic and production wastewater can be discharged into the local water system after multiple sedimentation and qualified tests. Oil-water separation tanks (or sedimentation tanks) under bridges are set up for bridges in nature reserves, forest parks, sensitive areas for environ- mental protection and water conservation.

Hailing Island Bridge Project It strictly implements various ecological and environmental protection measures and sets up a total of six sedimentation tanks for the project to collect runoff of hazardous articles or water for fire fighting to protect the surrounding water environment.

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Develop policies and measures for circular economy Green Products

In the construction of bridge pile foun- In asphalt mixing plants, the Actively promote the recycling and Support the development and use of dations, the mud in the mud sedimenta- waste powder generated by reuse of pavement asphalt materials. green and low-carbon products tion tank is treated with special mud dust removal in the production By strengthening the design require- treatment equipment. After the mud is process is collected in a con- ments, as well as the typical projects mixed and reacted with flocculant solu- tainer for asphalt powder, such as the hot recycling regeneration We actively respond to national policies, and have tion with a certain solubility by a transfer which was transported to of the asphalt pavement of the Shan- completed the construction tasks of charging facilities in pump, tiny solid particles are formed ceramic manufacturers for mei Project and the in-situ thermal expressway service areas in 2019, which is required by into flocculent clumps, which turn to ceramic production. regeneration of the asphalt pavement the Provincial Government's Opinions on Accelerating the sludge after being separated from of the South Second Beltway Project, it Innovation and Development of the New Energy Vehicle water in the gravity zone, which in turn promoted the recycling of the asphalt Industry, the Provincial Department of Transportation's turn to slurry solid for brick making after pavement of the highway in the Notice on Publishing the Construction Plan for Charging being continuously and slowly Group. The overall utilization rate is Facilities in Expressway Service Areas of Guangdong squeezed by a filter belt with adjustable above 90%. Province (2019-2020), Provincial Energy bureau's Letter tension, and finally passing through the on Publishing the Meeting Minutes on Accelerating low-pressure zone and the high-pres- Charging Infrastructure Construction in Expressway sure zone to squeeze out most water. Service Areas in 2019 and other documents. We have invested and built 106 charging stations in 57 service areas across the province, and established a preliminary intercity expressway charging network, providing strong support for the development of our province’s electric vehicle industry. It is an important step for us to promote the national green and low-carbon development policy, to assume SOE's social responsibility and to improve the Recycle and reuse quality of travel service. Recycle and reuse resources No. of charging stations in renewable resources 57 service areas across Kaiyang Construction and Expansion Project In order to save costs and the province 106 enable resource recycling, the project collected and processed materials like waste cement concrete pavements, water-stable structural layer, slab replacement beams, demolished bridges, drainage structures for Three Reforms projects, material replacement and filling, and materials for drainage structure. It vigorously Policies and measures for promotes asphalt regeneration technology, use cold regeneration enterprises to use new, equipment to add a certain amount of new asphalt and mix with renewable or clean energy original waste asphalt, mixtures, and regenerants so as to form new asphalt mixtures, which can be used for soft bases. New Energy

Keekuan Company According to the advocacy of green travel in Guangdong and Macao and the trends of transitioning to a low-carbon, electric, and intelli- gent transportation industry, KeeKuan actively applies new energy technologies. In 2019, 43 pure electric vehicles were upgraded, which led to an effective Keekuan Company's Pure Electric Vehicles Recovery rate for the Group’s Recovery rate for waste Recycling rate reduction of fuel consumption. expressway's asphalt pavement cement on concrete waste mixture pavement Meiping Project In order to promote the development of green highways, by making full use of solar energy resources, building a clean, low-carbon, green and 100% 100% >90% environmentally friendly energy system, a photovoltaic power generation system was set up at Changtian Toll House and at the entrance of Renzishi Tunnel, so as to reduce the electricity cost and enable green smart power supply that reduced carbon emission.

Hualu Project In the construction of pavement of the station, the project used energy-saving and environ- mental protection technologies. Heating devices in asphalt mixing stations used the method of converting oil to gas to reduce air pollution. Photovoltaic Power Generation System at Changtian Toll Station

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Ecological restoration Green Ecology Ecological restoration and governance and governance

Rate of ecological restoration and governance Chaoshan Beltway Project Thoroughly apply the concept on Select uncultivated land for temporary Plan Construct Maintain Operate projects so that the land can be plowed and green transportation 100% used after the construction Loosen and soften hard soil at temporary construction sites, preserve water and soil, restore drainage and irrigation systems and turn the land to arable, cultivated farmland Protect Biodiversity (dry land and paddy fields)

Conserve living creatures from all sources in their original habitats Collect and stack topsoil and conserve soil or move them to another place so as to maintain biodiversity and water during construction, and fill holes at temporary construction sites and on both sides of highway for ecological restoration Green Highway

Zihui Project Chaoshan Beltway Project Meizhou East Beltway Project

In order to apply green construction, It did thorough research on major protected It created a dynamic landscape the project did research on local plants in local areas. Once these plants are corridor with the regional plants and determined to use native identified during construction, it will report to the characteristics of Meizhou, by Zihui Project Kaiyang Construction and Expansion Project species as plants for the slopes. With competent department in time for in-situ or actively building green roads, the project's main color consistent ex-situ protection. It does not use environmen- setting the theme of plum The excavation of the slope strictly followed the After the completion of the project, the ecological with the Flower of Heyuan City and tally sensitive areas for temporary land use. For blossoms, and using Five-color principle of "excavating simultaneously with environment should be restored as soon as pos- the Flower of Huizhou City, it created temporary land occupation, ecology has to be flowers for slope greening. protecting". The projects set up slope protec- sible, especially the temporarily occupied areas a dynamic landscape corridor with restored afterwards. For protected sections, it tion and greening in time to avoid soil erosion such as borrow pits, waste dumps, construction unique regional characteristics. focuses on the education, compliance and caused by surface exposure for too long. After camps, etc., in order to minimize the adverse Precious trees were transplanted management so that construction workers and the construction of under-bridge substructure effects of habitat destruction on animals and during construction for greening in other relevant parties are aware of wild plant was completed, the land under the bridge was restore the original habitat as soon as possible. service areas. protection and consciously protect wild plants renovated and landscaped in time. and their living environment.

Protect natural habitats, wetlands, forests, Preserve Nature wildlife corridors, and agricultural land during the construction period Xingshan Project

It took measures in the section of Guangdong In the planning and design of highways, priority is given to Haifeng Bird Provincial Nature Reserve (K21 + 350 recommending schemes with low environmental impact, less ~ K21 + 901) to mitigate its impact on ecology. land occupation, and less construction cost. No-noise signs were set up at both ends, and speed bumps were minimalized to reduce traffic Try to avoid ecologically sensitive points and adhere to the noise. The width of the dense planting on both principles of "terrain route selection, geological route selection, sides of the highway is not less than 20m, and the environmental route selection, planning route selection, and green forest belt combined with trees and shrubs ecological route selection". prevents the car lights from entering the woods. Make full use of terrain conditions to minimize high-fill deep Not less than 550m noise barrier was constructed. excavation.

Protect vegetation and wildlife, and reduce the impact on nature, Huiqing Project ecology, water resources and environment. During construction, by strengthening the protec- Try to avoid unfavorable geology, reduce engineering difficulties, tion of clearing surface humus and native plants and facilitate construction. Route layout makes reasonable use of along the route, the top soil resources were effec- limited corridor resources to protect limited cultivated land tively utilized, and more than 2,000 precious native resources and ecological environment. plants were transplanted.

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Afterword Remain true to our original aspirations and build a country with strong transportation network

Corporate Responsibility 71 Names of Participating Organizations 73 and their Corresponding Roles

Index 74 a country with strong transportation network Remain true to our original aspirations and build

Key Performance Responsibility Management Market Performance Social Performance Environmental Performance Afterword

Outlook on Corporate Responsibility

Remain true to our original aspirations and build a country with strong transportation network Work wholeheartedly for the new era, new adventure and new development

2020 is a milestone year for China to conclude the work for We will position ourselves as a "pioneer" of transportation In 2020, the Group will follow the the construction of a well-off society and the Thirteenth and seize the significant opportunity to construct the guideline of Xi Jinping Thought on Five-Year Plan. In this year, China is going to reach its first Guangdong-Hong Kong-Macao Greater Bay Area and Socialism with Chinese Characteris- century goal as well as to lay a solid foundation for the Shenzhen pilot demonstration zone, focusing on the Fourteenth Five-Year Plan and for the second century goal, infrastructure construction of the Greater Bay Area that tics for a New Era and fully implement so as to make new accomplishments in the new context addresses weak points and the upgrading and expansion the spirit of General Secretary Xi when we are transitioning from one century goal to another. of national highways, as well as speeding up the project Jinping's speeches and important For the time being and in the near future, investment in that connects the east and west sides of the Pearl River transport infrastructure will not be cut down and the instructions on Guangdong, as well as Port. We will take the strategic opportunity of and focus on general trend of major projects that aim to adjust the building passengers across rivers and oceans, including decisions and plans by the Party Cen- "reverse business cycle" remains the same. The tral Committee, the State Council, construction of the Guangdong-Hong Kong-Macao Greater Shenzhong Link, Huangmao Sea, Lion Ocean, Locus Bay Area and Shenzhen pilot demonstration area is a Flower Mountain, and Lingting Ocean. We will play a CPC Guangdong Provincial Commit- "double driver" to fully push the transportation industry leadership role to innovate and explore new ways in such tee and Provincial government. We forward. The national strategy of Building a Country�with a areas as key technological breakthroughs, application of are resolute to complete our construc- Strong Transportation Network is no longer just a major engineering equipment and smart construction development trend, but rather, a development wave. In technology, full life cycle quality management, navigation tion to build a well-off society and the terms of the development mode for expressways, there is a safety guarantee, land and sea ecological environmental 13th Five-Year Plan, whose planned change from scaling up to quality enhancement that is protection, whole-process information management and tasks are our top priority. We will con- based on service quality and capability. cost control, and key technical standard formulation. tinue to lead the reform on quality, Meanwhile, our exploration of the industry's new normal In order to fulfill our tasks in future, we must follow the drives us to develop new technologies, find new areas and efficiency and power transformation guidance of Xi Jinping Thought on Socialism with Chinese and spare no effort to make Guang- Characteristics for a New Era and set our mind to promote cultivate new niches in the industry. Through four major the construction of the Guangdong-Hong Kong-Macao sections, namely, engineering construction management, dong a pilot project for the national Greater Bay Area and that of Shenzhen first pilot people's travel with vehicles, logistics and information strategy of building a country with demonstration zone of socialism with Chinese circulation, we will do our best to extend the transportation strong transportation network, characteristics. We will spare no effort to revitalize industrial chain. The Group aims to be the main force of promote the Belt and Road Initiative, Guangzhou from an old city and bring out Four New Guangdong's transportation infrastructure construction, a Colors. We will promote the restructuring of One Core, One leading company in transportation in the Guangdong, the development of the Guang- Belt, One District region. By working on the trial project of Hong Kong and Macao Greater Bay Area, and a business dong-Hong Kong-Macao Greater Bay Building a Country with a Strong Transportation Network, operator that offers first-class traffic travel services. Third, Area, and the new plan of One Core, we will do our best to play a leading role in the construction we strive to lead the industry service quality. Our goal is to of the comprehensive transportation system. First, we will provide passengers great experience with our travel One Belt, and One Region new struc- make all our efforts to take the lead in our industry in Party products, meet the needs of truck drivers and support the ture. We will work hard to support Building, pushing forward the comprehensive construction development of logistics. Based on these goals, we will Shenzhen as a pilot demonstration of the Party's grassroots organizations by remaining true to comprehensively optimize our business model. With travel zone of socialism with Chinese char- our original aspirations and keeping our mission firmly in needs as our guide, we can harness the synergy effect of acteristics. mind. We will incorporate the spirit of Party Leadership and the intelligent transportation industrial chain, integrate big Party Building into all aspects of corporate governance. data resources in toll collection, management, control, and Second, we will do our best to lead the industry to scale up development. emergency rescue, and improve our capabilities in intelligent transportation.

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Names of Participating Organizations and their Corresponding Roles Index

No. Professional Associations & Organizations Roles and Responsibilities Contents Chinese Academy of Social Sciences CASS-CSR Indicators

Passenger Transportation Branch of Guangdong Road Chair Front Cover 1 Transportation Association 2 Guangdong Urban Public Transport Association Chair About this Report (2019) P1.1/P1.2/P1.3/P1.4/P1.5/P2.1/P2.2

3 Traffic Engineering Committee of Guangdong Highway Society Director Contents Message from Board Chair and 4 Guangdong Intelligent Transportation Association Senior Vice Chair General Manager P3.1/P3.2 5 Guangdong Communication Electronic Payment Association Senior Vice Chair Key Performance

6 Guangdong Road Transportation Industry Association Senior Vice Chair Company Profile P4.1/P4.2/P4.3 7 Guangzhou Road Transportation Industry Association Senior Vice Chair Major Social Responsibility Tasks in 2019 P5.1

8 Association for Expressway Development in Guangdong Province Vice Chair Operation Performance P5.2

9 Guangdong Transportation Association Vice Chair CSR Awards P5.3 Guangzhou Software Industry Association 10 Vice Chair Responsibility Management Information Development Association in Baiyun District Vice Chair 11 Responsibility Governance G1.1/G1.2/G1.3 12 Zhuhai Port Association Vice Chair Integrated Responsibility G2.1/G2.2 13 Macau Chinese Enterprise Association Vice Chair Coordination of Responsibility G3.1/G3.2/G3.3/G3.4/G3.5/G3.6/G3.7/G3.8 14 Macau Convention and Exhibition Association Vice Chair Market Performance 15 Macau Cross-Bordery Passenger Transport Association Vice Chair Customer Responsibility M2.1/M2.2/M2.3/M2.5/M2.6/M2.7/M2.8/M2.9/M2.10/M2.13/M2.14 Motor Vehicle Maintenance and Inspection Branch, Guangdong 16 Vice Chair Road Transportation Association Partner Responsibility M3.1/M3.2/M3.3/M3.4/M3.5/M3.6/M3.7/M3.8/M3.9 17 Guangdong Chain Operation Association Vice Chair Social Performance 18 Guangdong Province Zhongdao Tourism Distribution Center Alliance Committee Director Corporate Responsibility S1.1/S1.2/S1.3/S1.4/S1.6/S1.7/S1.8 19 Guangdong Listed Companies Association Vice Chair Employee Responsibility S2.1/S2.2/S2.3/S2.4/S2.5/S2.5/S2.8/S2.9/S2.11/S2.12/S2.13 New Energy Vehicle Professional Committee, Guangdong Provincial Vice Director 20 Road Transportation Association S2.14/S2.15/S2.16/S2.17/S2.18/S2.22/S2.23 /S2.24/S2.25/S2.26 The Second Council of Guangdong Intelligent Transportation Executive Committee Member 21 Association S2.27/S2.28/S2.29/S2.30/S2.31 22 Guangdong Transportation Industry Association Executive Committee Member Safe Production S3.1/S3.2/S3.3/S3.5/S3.6/S3.7 23 Guangdong Communication Accountant Association Executive Committee Member Community Responsibility S4.1/S4.2/S4.3/S4.4//S4.5/S4.6/S4.7/S4.8/S4.9/S4.10/S4.12 24 Guangdong Modern Service Industry Association Executive Committee Member S4.13/S4.14 25 Guangdong Software Industry Association Committee Member 26 Guangzhou Software Industry Association Committee Member Environmental Performance Green Operation E1.1/E1.2/E1.3/E1.4/E1.5/E1.6/E1.7/E1.8/E1.9 27 Guangdong State-owned Accounting Association Committee Member E1.10/E1.11/E1.13 28 Tunnel Engineering Branch of China Highway Association Committee Member Green Business

29 Guangdong Enterprise Federation, Provincial Enterprise Association Committee Member Green Ecology E2.1/E2.2/ E2.4/E2.5/E2.6/E2.7/E2.8/E2.9/E2.10/E2.13/E2.14/

30 Intelligent Transportation Association Committee Member E3.1/E3.2/E3.4/E3.5/E4.1/E4.2/E4.3/E4.4 31 Guangdong Entrepreneurship Investment Soceity Committee Member Afterword

32 China Road Transportation Industry Association Member Outlook on Corporate Responsibility A1 Names of Participating Organizations and 33 China Association for Financial Corporations Member their Corresponding Roles A2 34 Guangdong Banking Association Member Index A3

35 Guangzhou Headquarters Economy Association Member Back Cover A4

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