Sichuan Expressway : 2020 Interim Report

September 17, 2020 at 02:40 pm IST

(a joint stock company incorporated in the People's Republic of China with limited liability)

(Stock Code: 00107)

Interim Report

CONTENTS

Definitions	2
Corporate Information	12
Company Profile	16
Interim Condensed Consolidated Financial
Information	18
Changes in Share Capital and Shareholding
of Substantial Shareholders	90
Directors, Supervisors and Senior
Management	93
Management's Discussion and Analysis	96
Other Significant Events	137

DEFINITIONS

In this section, the definitions are presented in alphabetical order (A-Z).

NAME OF EXPRESSWAY PROJECTS

Airport Expressway	Chengdu Airport Expressway
Chengbei Exit Expressway	Chengdu Chengbei Exit Expressway
Chengle Expressway	Sichuan Chengle (Chengdu - Leshan)
	Expressway
Chengren Expressway	Chengdu - Meishan (Renshou) Section of
	ChengZiLuChi (Chengdu - Zigong - Luzhou-
	Chishui) Expressway
Chengya Expressway	Sichuan Chengya (Chengdu - Ya'an)
	Expressway
Chengyu Expressway	Chengyu (Chengdu-Chongqing) Expressway
	(Sichuan Section)
Suiguang Expressway	Sichuan Suiguang (Suining - Guang'an)
	Expressway
Suixi Expressway	Sichuan Suixi (Suining-Xichong) Expressway
Tianqiong Expressway	Tianqiong (Tianfu New Area - Qionglai)
	Expressway

2 Sichuan Expressway Company Limited

DEFINITIONS (CONTINUED)

BRANCHES, SUBSIDIARIES AND PRINCIPAL INVESTED COMPANIES

Airport Expressway	Chengdu Airport Expressway Company
Company	Limited
Chengbei Company	C h e n g d u C h e n g b e i E x i t E x p r e s s w a y
	Company Limited
Chengle Company	Sichuan Chengle Expressway Company
	Limited

Chengle Operation Branch Operation and Management Branch of

Sichuan Chengle Expressway Company

Limited

Chengren Branch	Sichuan Expressway Company Limited
	Chengren Branch
Chengya Branch	Sichuan Expressway Company Limited
	Chengya Branch
Chengya Oil Company	Sichuan Chengya Expressway Oil Supply
	Company Limited
Chengyu Advertising	Sichuan Chengyu Expressway Advertising
Company	Company Limited
Chengyu Branch	Sichuan Expressway Company Limited
	Chengyu Branch

2020 Interim Report

DEFINITIONS (CONTINUED)

Chengqiongya Company	S i c h u a n C h e n g q i o n g y a E x p r e s s w a y
	Company Limited
Chengyu Development	Sichuan Chengyu Development Equity
Fund	Investment Fund Centre (Limited Partnership)
Chengyu Education	Sichuan Chengyu Education Investment
Company	Co., Ltd.
Chengyu Financial Leasing Chengyu Financial Leasing Company
Company	Limited
Chengyu Jianxin Fund	Chengdu Chengyu Jianxin Equity Investment
Company	Fund Management Co., Ltd.
Chengyu Logistics	Sichuan Chengyu Logistics Company
Company	Limited
Commercial Factoring	Sichuan Chengyu Commercial Factoring
Company	Company Limited (formerly known as "Tianyi
	United Commercial Factoring (Luzhou)
	Company Limited (天乙多聯商業保理（瀘州）
	有限公司)"
CSI SCE	CSI SCE Investment Holding Limited

4 Sichuan Expressway Company Limited

	DEFINITIONS (CONTINUED)

Renshou Bank	Sichuan Renshou Rural Commercial Bank
	Co., Ltd.
Renshou Landmark	Renshou Trading Landmark Company
Company	Limited
Renshou Shunan	Renshou Shunan Investment Management
Company	Company Limited
Shuhai Company	Chengdu Shuhai Investment Management
	Company Limited
Shuhong Company	Chengdu Shuhong Property Company
	Limited
Shunan Company	Sichuan Shunan Investment Management
	Company Limited
Shunan Chengxing	Ziyang Shunan Chengxing Project
Company	Construction & Management Co., Ltd.

2020 Interim Report

DEFINITIONS (CONTINUED)

Shuxia Company	Sichuan Shuxia Industrial Company Limited
Suiguang Suixi Company	S i c h u a n S u i g u a n g S u i x i E x p r e s s w a y
	Company Limited
Multimodal United	Sichuan Multimodal United Transportation
Transportation	Investment and Development Co., Ltd.* (四
Company	川省多式聯運投資發展有限公司) (formerly
	named as "Sichuan Tianyi United Investment
	& Development Co., Ltd(四川省天乙多聯投
	資發展有限公司)")
Trading Construction	Sichuan Trading Construction Engineering
Company	Co., Ltd. (formerly known as "Sichuan
	Shugong Expressway Engineering Company
	Limited")
Zhonglu Energy Company	Sichuan Zhonglu Energy Company Limited
Zhongxin Company	Sichuan Zhongxin Assets Management Co.,
	Ltd.

6 Sichuan Expressway Company Limited

	DEFINITIONS (CONTINUED)

III. OTHERS
2019 AGM	the 2019 annual general meeting of the
	Company convened on Wednesday, 3
	June 2020, the resolutions of which were
	published on the website of the Stock
	Exchange on the same date
A Share(s)	ordinary share(s) denominated in RMB
	of the Company with a nominal value of
	RMB1.00 each, which are issued in the
	PRC, subscribed for in RMB and listed on
	the SSE
Articles of Association	the Articles of Association of the Company,
	as amended from time to time
associate(s)	has the meaning as ascribed to it under the
	Listing Rules of the Stock Exchange
associated corporation(s)	has the meaning as ascribed to it under the
	SFO
Audit Committee	the Audit Committee of the Board
Board	the Board of Directors of the Company
BOT Project	build - operate - transfer project
BT Project	build - transfer project

2020 Interim Report

DEFINITIONS (CONTINUED)

Chengle Expressway	Capacity Expansion Construction Project for
Expansion Construction	the Chengdu - Leshan Expressway
Project
China Merchants	China Merchants Expressway Network and
Expressway Company	Technology Holdings Co. Ltd (previously
	known as China Merchants Huajian Highway
	Investment Company Limited), a substantial
	shareholder of the Company
Company	Sichuan Expressway Company Limited
CSRC	China Securities Regulatory Commission
Director(s)	director(s) of the Company
Group	the Company and its subsidiaries
H Share(s)	overseas listed share(s) of the Company
	with a nominal value of RMB1.00 each,
	which are issued in Hong Kong, subscribed
	for in HKD and listed on the main board of
	the Stock Exchange
HKD	Hong Kong dollars, the lawful currency of
	Hong Kong

8 Sichuan Expressway Company Limited

	DEFINITIONS (CONTINUED)

Hong Kong	the Hong Kong Special Administrative
	Region of the PRC
Listing Rules	the Rules Governing the Listing of Securities
	on the Stock Exchange and/or the Rules
	Governing the Listing of Stocks on the SSE
	(as the case may be)
Model Code	the Model Code for Securities Transactions
	by Directors of Listed Issuers contained
	in Appendix 10 to the Listing Rules of the
	Stock Exchange, which has been adopted
	by the Company as the code of conduct
	for securities transactions by Directors and
	Supervisors of the Company
Nomination Committee	the Nomination Committee of the Board
Period or	for the six months ended 30 June 2020
Reporting Period
PRC or Mainland China	the People's Republic of China, for the
	purpose of this interim report, excluding
	Hong Kong, the Macao Special Administrative
	Region and Taiwan
Remuneration and	the Remuneration and Appraisal Committee
Appraisal Committee	of the Board

2020 Interim Report

DEFINITIONS (CONTINUED)

RMB	Renminbi, the lawful currency of the PRC
SFO	the Securities and Futures Ordinance
	(Chapter 571 of the Laws of Hong Kong)
Share(s)	A Share(s) and/or H Share(s) (as the case
	may be)
Shareholder(s)	holder(s) of Shares
SSE	Shanghai Stock Exchange
STIG	Sichuan Transportation Investment Group
	Corporation Limited, the controlling
	Shareholder of the Company
STIG Group	STIG and its subsidiaries
Stock Exchange	The Stock Exchange of Hong Kong Limited
Strategic Committee	the Strategic Committee of the Board
Suiguang-Suixi	the project on Suiguang Expressway and
Expressways	Suixi Expressway in the form of BOT (build -
BOT Project	operate - transfer)

10 Sichuan Expressway Company Limited

	DEFINITIONS (CONTINUED)

Supervisor(s)	supervisor(s) of the Company
Supervisory Committee	the supervisory committee of the Company
Tianqiong Expressway	the project of Tianfu New District to Qionglai
BOT Project	Expressway BOT (build-operate-transfer)
	project
Trading Property	Sichuan Trading Property Company Limited
Company	(四川交投地產有限公司) (previously known
	as "Sichuan Trading Landmark Company
	Limited")

In this interim report, the English names of the PRC entities are translations of their Chinese names and included herein for identification purposes only. In the event of any inconsistency between the Chinese and English names, the Chinese names shall prevail.

2020 Interim Report

CORPORATE INFORMATION

Statutory Chinese and English	四川成渝高速公路股份有限公司
Names of the Company	Sichuan Expressway Company Limited
Legal Representative	Gan Yongyi
Company Website	http://www.cygs.com
Company's Registered Address	252 Wuhouci Da Jie, Chengdu, Sichuan
and Office Address	Province, the PRC
Postal Code	610041
Secretary to the Board	Zhang Yongnian
Tel	(86)	28-8552-7510
Representative of	Wang Aihua
Securities Affairs
Tel	(86)	28-8552-6105
Fax	(86)	28-8553-0753
Investors' Hotline	(86)	28-8552-7510/（86)28-8552-7526
E-mail	cygszh@163.com
Contact Address	252 Wuhouci Da Jie, Chengdu, Sichuan
	Province, the PRC

12 Sichuan Expressway Company Limited

CORPORATE INFORMATION (CONTINUED)

Stock Exchanges of the Listing	A Shares:	Shanghai Stock Exchange
Shares	Stock Code:	601107
	Stock Name: Sichuan Express
	H Shares:	The Stock Exchange of Hong
		Kong Limited
	Stock Code:	00107
	Stock Name: Sichuan Express
Newspapers Selected by the	China Securities Journal, Shanghai
Company for Information	Securities News
Disclosure
Websites Designated for	http://www.sse.com.cn
Publication of the Interim	http://www.hkex.com.hk
Report of the Company	http://www.cygs.com
Place for Inspection of the	PRC:	252 Wuhouci Da Jie,
Interim Report of		Chengdu, Sichuan Province,
the Company		the PRC
	Hong Kong:	Rooms 2201-2203, 22/F,
		World-Wide House,
		19 Des Voeux Road
		Central, Central,
		Hong Kong
International Auditor	Ernst & Young
	22/F, CITIC Tower, 1 Tim Mei Avenue,
	Central, Hong Kong

2020 Interim Report

CORPORATE INFORMATION (CONTINUED)

PRC Auditor	Shinewing Certified Public Accountants
	(Special General Partnership)
	9th Floor, Block A, Fu Hua Mansion,
	No. 8 Chao Yang Men Bei Da Jie,
	Dong Cheng District, Beijing City, the PRC
Hong Kong Legal Adviser	Li & Partners
	22/F, World-Wide House,
	19 Des Voeux Road Central,
	Central, Hong Kong
PRC Legal Adviser	Beijing Zhongyin (Chengdu) Law Firm
	(北京市中銀（成都）律師事務所)
	13th Floor, Block B, OCG International
	Center, No. 158 Tianfu 4th Avenue,
	GaoXin District, Chengdu,
	Sichuan Province, the PRC

14 Sichuan Expressway Company Limited

CORPORATE INFORMATION (CONTINUED)

Domestic Shares Registrar and	China Securities Depository and Clearing
Transfer Office	Corporation Limited Shanghai Branch
	36/F China Insurance Building,
	No.166 Lujiazui East Road, Pudong,
	Shanghai, the PRC
Hong Kong Shares Registrar	Hong Kong Registrars Limited
and Transfer Office	Shops 1712-1716, 17th Floor,
	Hopewell Centre,
	183 Queen's Road East, Wanchai,
	Hong Kong
Principal Place of Business in	Rooms 2201-2203, 22/F, World-Wide
Hong Kong	House, 19 Des Voeux Road Central,
	Central, Hong Kong
Initial Registration	19 August 1997
Date and Place	Chengdu, Sichuan Province, the PRC
Unified Social Credit Code	9151000020189926XW
Principal Banker	China Construction Bank

2020 Interim Report

COMPANY PROFILE

The Company was incorporated in the Industry and Commerce Bureau of Sichuan Province of the PRC on 19 August 1997. The Company was listed on the Stock Exchange (stock code: 00107) on 7 October 1997 and on the SSE (stock code: 601107) on 27 July 2009, respectively.

The Group is principally engaged in the investment, construction, operation and management of expressway infrastructure projects as well as the operation of other businesses related to expressways. Currently, the Group mainly owns all or substantial interests in a number of expressways in Sichuan Province such as Chengyu Expressway, Chengya Expressway, Chengle Expressway, Chengren Expressway, Chengbei Exit Expressway, Suiguang Expressway, Suixi Expressway and Tianqiong Expressway under construction. As at 30 June 2020, the length of expressways of the Group has reached approximately 744km in total, and the length of expressways under construction were approximately 42km. The Group's total asset and net asset were approximately RMB38,486,474,000 and RMB15,619,787,000 respectively.

16 Sichuan Expressway Company Limited

As at 30 June 2020, the total number of share capital of the Company is 3,058,060,000 Shares (including 895,320,000 H Shares and 2,162,740,000 A Shares), the shareholders and asset structure of the Company are as follows:

Holders of

A shares

H Shares

70.72%

29.28%

China

Merchants

Other holders

STIG

Other holders

Expressway

of A Shares

of H Shares

Company

15.12%

21.73%

33.87%

1.99%

27.29%

Sichuan Expressway Company Limited

50%

82%

100%

91%

51%

100%

60%

51%

100%

25%

Chengyu

Chengya

Chengren

Chengqiongya

Shuxia

Renshou

Zhonglu

Shuhai

Shuhong

Shunan

CSI

Chengle

Suiguang Suixi

Chengbei

Chengya Oil

Multimodal United

Chengyu

Airport Expressway

Chengyu Jianxin

Landmark

Energy

Transportation

Education

Branch

Company

SCE

Company

Fund Company

Company

50%

100%

45%

25%

100%

Tianqiong

Chengyu Financial

Commercial

Airport Expressway

Chengyu

Chengya

Chengren

Expressway

Zhongxin

Renshou Shunan

Leasing

Chengle Operation

Factoring

Expressway

42KM

Company

Branch

Company

11.98 KM

226KM

144.2KM

106.613KM

(under

construction)

1.64%

49.18%

Chengyu

Chengle

Development

Expressway

Fund

86.44KM

94.98%

100%

60%

Shunan

Chengyu

0.01%

Chengxing

Suiguang

Suixi

Chengbei Exit

Qinglongchang

Logistics

Advertising

Expressway

Bridge

Company

102.941KM

67.644KM

10.35KM

4,800M

17 Report Interim 2020

(CONTINUED) PROFILE COMPANY

INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION

INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 June 2020

		For the six months
		ended 30 June
		2020			2019
	Notes	RMB'000	RMB'000
		(Unaudited)	(Unaudited)
REVENUE	4	2,339,595		3,327,239
Cost of sales		(2,053,240)	(1,884,063)

Gross profit		286,355		1,443,176
Other income and gains	4	100,562		132,141
Administrative expenses		(144,554)	(131,184)
Other expenses		(12,398)	(14,449)
Finance costs	5	(328,129)	(369,802)
Share of profits and losses of:
Joint ventures		4,553			115
Associates		3,641			12,416

PROFIT/(LOSS) BEFORE TAX	6	(89,970)	1,072,413
Income tax expense	7	(46,191)	(198,163)

PROFIT/(LOSS) FOR THE PERIOD		(136,161)	874,250

18 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (CONTINUED)

For the six months ended 30 June 2020

For the six months

ended 30 June

2020 2019

RMB'000 RMB'000

(Unaudited) (Unaudited)

Attributable to:
Owners of the Company	(164,758)	832,876
Non-controlling interests	28,597		41,374

	(136,161)	874,250

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (CONTINUED)

For the six months ended 30 June 2020

For the six months

ended 30 June

2020 2019

RMB'000 RMB'000

(Unaudited) (Unaudited)

OTHER COMPREHENSIVE
INCOME/(LOSS)
Other comprehensive income/(loss)
that will not to be reclassified
to profit or loss in subsequent
periods:
Equity investments designated at fair
value through other comprehensive
income:
Changes in fair value	(80,941)	4,378
Income tax effect	13,484	(655)
OTHER COMPREHENSIVE

INCOME/(LOSS) FOR THE
PERIOD, NET OF TAX	(67,457)	3,723
TOTAL COMPREHENSIVE

INCOME/(LOSS) FOR THE
PERIOD	(203,618)	877,973

20 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (CONTINUED)

For the six months ended 30 June 2020

		For the six months
		ended 30 June
	Notes	2020		2019
		RMB'000	RMB'000
		(Unaudited)	(Unaudited)
Attributable to:
Owners of the Company		(231,963)	836,184
Non-controlling interests		28,345		41,789

		(203,618)	877,973
EARNINGS/(LOSSES) PER SHARE


ATTRIBUTABLE TO ORDINARY
EQUITY HOLDERS OF THE
COMPANY
- Basic and diluted	8	RMB(0.054)	RMB0.272

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

30 June 2020

		30 June	31 December
		2020		2019
	Notes	RMB'000	RMB'000
		(Unaudited)
NON-CURRENT ASSETS
Property, plant and equipment	9	730,925		760,079
Right-of-use assets	9	433,950		458,490
Service concession arrangements	9	25,685,345	25,423,037
Investments in joint ventures	10	135,738	135,374
Investments in associates	11	303,422	318,427
Equity investments designated at fair
value through other comprehensive
income	12	291,848	372,789
Loans to customers	13	1,318,417	1,180,772
Long term compensation receivables		14,353		24,010
Payments in advance		73,515		49,360
Contract assets		10,000		10,000
Contract costs		5,296		17,480
Deferred tax assets		17,081		157
Interests in land held for property
development		156,303		156,303
Restricted deposits	16	34,699		29,102
Pledged deposits	16	-	15,000

Total non-current assets		29,210,892		28,950,380

22 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)

30 June 2020

		30 June	31 December
		2020		2019
	Notes	RMB'000	RMB'000
		(Unaudited)
CURRENT ASSETS
Properties under development	14	2,268,242		2,019,493
Completed properties held for sale	14	152,188		154,350
Inventories		40,408		63,841
Loans to customers	13	984,749		935,463
Trade and other receivables	15	2,786,658		2,681,172
Contract assets		21,000		21,000
Contract costs		25,142		9,238
Financial assets at fair value through
profit or loss		76,879		73,933
Pledged deposits	16	15,000		-
Cash and cash equivalents	16	2,905,316		2,951,704

Total current assets		9,275,582		8,910,194

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)

30 June 2020

		30 June	31 December
		2020		2019
	Notes	RMB'000	RMB'000
		(Unaudited)
CURRENT LIABILITIES
Tax payable		40,870		70,823
Trade and other payables	17	2,867,019		3,229,995
Contract liabilities		1,404,886		542,203
Dividend payables		108,970		10,485
Interest-bearing bank and other
borrowings	18	5,603,060		3,541,803

Total current liabilities		10,024,805		7,395,309
NET CURRENT ASSETS/

(LIABILITIES)		(749,223)	1,514,885
TOTAL ASSETS LESS CURRENT

LIABILITIES		28,461,669		30,465,265

24 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)

30 June 2020

		30 June	31 December
		2020		2019
	Notes	RMB'000	RMB'000
		(Unaudited)
NON-CURRENT LIABILITIES
Interest-bearing bank and other
borrowings	18	12,291,090	13,310,136
Deferred tax liabilities		4,930		9,088
Contract liabilities		456,277	895,936
Deferred income	17	89,585	96,137

Total non-current liabilities		12,841,882		14,311,297

Net assets		15,619,787		16,153,968

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)

30 June 2020

	30 June	31 December
	2020		2019
	RMB'000	RMB'000
	(Unaudited)
EQUITY
Equity attributable to owners of
the Company
Issued capital	3,058,060		3,058,060
Reserves	11,651,488		12,219,838

	14,709,548		15,277,898
Non-controlling interests	910,239		876,070

Total equity	15,619,787		16,153,968


Gan Yongyi	Li Wenhu
Director	Director

26 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 June 2019

													Attributable to owners of the Company

														Fair value
														reserve of
										Difference		financial
									arising from		assets at
										changes		fair value
			Share	Statutory		in non-	through other											Non-
	Issued	premium	surplus		controlling	comprehensive	General risk	Merger	Safety fund	Capital	Retained					controlling
	capital	account	reserve		interests		income	reserve	difference	reserve	reserve	profits		Total	interests	Total equity
	RMB'000	RMB'000	RMB'000		RMB'000		RMB'000	RMB'000	RMB'000	RMB'000	RMB'000	RMB'000		RMB'000	RMB'000		RMB'000
At 31 December 2018	3,058,060		2,654,601	4,910,903	(254,570)	84,661	-	(533,123)	8,146	32,820	4,530,108	14,491,606	392,793	14,884,399
Profit for the period	-	-	-		-		-	-	-	-	-	832,876	832,876	41,374	874,250
Other comprehensive income for
the year:
Changes in fair value of equity
investments designated
at fair value through other
comprehensive income, net of
tax	-	-	-		-	3,308	-	-	-	-	-	3,308	415	3,723

Total comprehensive income for the
period	-	-	-		-	3,308	-	-	-	-	832,876	836,184	41,789	877,973
Transfer from/(to) reserves	-	-	-		-		-	-	-	-	-	-		-	-		-
Establishment for safety fund
surplus reserve	-	-	-		-		-	-	-	2,845	-	(2,845)		-	-		-
Utilisation of safety fund surplus
reserve	-	-	-		-		-	-	-	(650)	-	650		-	-		-
Acquisition of subsidiaries	-	-	-		-		-	-	-	-	-	-		-	490,116	490,116
Dividends paid to non-controlling
shareholders	-	-	-		-		-	-	-	-	-	-		-	(3,254)	(3,254)
Final 2018 dividend declared	-	-	-		-		-	-	-	-	-	(305,806)	(305,806)	-	(305,806)

At 30 June 2019 (Unaudited)	3,058,060		2,654,601*	4,910,903*	(254,570)*	87,969*	-*	(533,123)*	10,341*	32,820*	5,054,983*	15,021,984	921,444	15,943,428

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)

For the six months ended 30 June 2020

													Attributable to owners of the Company

														Fair value
														reserve of
														financial
										Difference		assets at
									arising from		fair value
										changes		through
			Share	Statutory		in non-		other												Non-
	Issued	premium	surplus	controlling	comprehensive	General risk	Merger	Safety fund	Capital	Retained					controlling
	capital	account	reserve		interests		income		reserve	difference		reserve	reserve	profits		Total	interests	Total equity
	RMB'000	RMB'000	RMB'000		RMB'000		RMB'000		RMB'000	RMB'000		RMB'000	RMB'000	RMB'000		RMB'000	RMB'000		RMB'000
At 31 December 2019	3,058,060		2,654,601	5,417,299	(254,570)	90,628	990	(533,123)	8,471	32,820	4,802,722	15,277,898	876,070	16,153,968
Profit/(loss) for the period	-	-	-		-		-		-	-		-	-	(164,758)	(164,758)	28,597	(136,161)
Other comprehensive income for
the year:
Changes in fair value of equity
investments designated
at fair value through other
comprehensive income, net of
tax	-	-	-		-	(67,205)		-	-		-	-	-	(67,205)	(252)	(67,457)

Total comprehensive income/(loss)
for the period	-	-	-		-	(67,205)		-	-		-	-	(164,758)	(231,963)	28,345	(203,618)
Transfer from/(to) reserves	-	-	-		-		-		-	-		-	-	-		-	-		-
Establishment for safety fund
surplus reserve	-	-	-		-		-		-	-	2,806	-	(2,806)		-	-		-
General risk reserve	-	-	-		-		-	191	-		-	-	(191)		-	-		-
Utilisation of safety fund surplus
reserve	-	-	-		-		-		-	-	(171)	-	171		-	-		-
Capital injection by a non-controlling
shareholder	-	-	-		-		-		-	-		-	-	-		-	22,000	22,000
Dividends paid to non-controlling
shareholders	-	-	-		-		-		-	-		-	-	-		-	(16,176)	(16,176)
Final 2019 dividend declared	-	-	-		-		-		-	-		-	-	(336,387)	(336,387)	-	(336,387)

At 30 June 2020 (Unaudited)	3,058,060		2,654,601*	5,417,299*	(254,570)*	23,423*	1,181*	(533,123)*	11,106*		32,820*	4,298,751*	14,709,548	910,239	15,619,787

*	T h e s e r e s e r v e a c c o u n t s c o m p r i s e t h e c o n s o l i d a t e d r e s e r v e s o f
	RMB11,651,488,000 (31 December 2019: RMB12,219,838,000) in the interim
	condensed consolidated statement of financial position.

28 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months ended 30 June 2020

For the six months

ended 30 June

2020 2019

Notes RMB'000 RMB'000

(Unaudited) (Unaudited)

CASH FLOWS FROM OPERATING
ACTIVITIES
Profit/(loss) before tax		(89,970)	1,072,413
Adjustments for:
Finance costs	5	328,129	369,802
Share of profits and losses of joint
ventures and associates		(8,194)	(12,531)
Fair value change on financial
assets at fair value through profit
or loss	4	(2,956)	-
Depreciation of property, plant and
equipment	9	45,677	35,568
Depreciation of right-of-use assets	9	29,313	27,454
Amortisation of service concession
arrangements	9	384,650	371,097
Reversal of provision for
impairment of other receivables	6	(327)	-
Impairment loss on trade
receivables	6	5,180	-

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

For the six months ended 30 June 2020

		For the six months
		ended 30 June
		2020		2019
	Notes	RMB'000	RMB'000
		(Unaudited)	(Unaudited)
Losses on disposal and write-off
of items of property, plant and
equipment	6	1,606		72
Interest income	4	(52,869)	(100,590)
Dividend income from equity
investments designated
at fair value through other
comprehensive income		(7,290)	(6,621)
Dividend income from financial
assets at fair value other profit or
loss		(2,380)	-

		630,569		1,756,664

30 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

For the six months ended 30 June 2020

	For the six months
	ended 30 June
	2020	2019
	RMB'000	RMB'000
	(Unaudited)	(Unaudited)
Additions to service concession
arrangements	(616,736)	(323,207)
Additions to properties under
development	(242,337)	(153,309)
Decrease in completed properties
held for sale	2,162	-
Increased in restricted deposits	(5,597)	(28,038)
Increase in loans to customers	(186,931)	(592,889)
Increase in contract assets and
contract costs	(3,720)	(38,551)
Increase in trade and other
receivables	(90,609)	(3,454)
Decrease/(increase) in inventories	23,433		(29,866)
Decrease in deferred income	(6,552)	(7,181)
Increase in contract liabilities	423,024		770,625
Decrease in trade and other payables	(517,009)	(661,778)
Cash generated from/(used in)

operations	(590,303)	689,016

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

For the six months ended 30 June 2020

	For the six months
	ended 30 June
	2020	2019
	RMB'000	RMB'000
	(Unaudited)	(Unaudited)
Interest received	37,078	55,416
Interest paid	(4,097)	-
Income tax paid	(83,742)	(146,624)
Net cash flows from/(used in)

operating activities	(641,064)	597,808
CASH FLOWS FROM INVESTING

ACTIVITIES
Purchases of items of property, plant
and equipment	(46,265)	(39,219)
Acquisition of subsidiaries	-	943,534
Investment in a joint venture	-	(71,050)
Proceeds from partially disposal of
shares of a joint venture	4,312	150,000
Investment in financial assets at fair
value through profit or loss	(78)	-

32 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

For the six months ended 30 June 2020

	For the six months
	ended 30 June
	2020	2019
	RMB'000	RMB'000
	(Unaudited)	(Unaudited)
Proceeds from disposal of financial
assets at fair value through profit
or loss	88	-
Proceeds from disposal of items of
property, plant and equipment	3,981	1,744
Interest received	21,465	24,243
Dividends received from associates	-	36,040
Dividends received from a joint
venture	2,776		-
Dividends received from equity
investments designated at fair
value through other comprehensive
income	7,290		6,621
Dividends received from financial
assets at fair value through profit
or loss	2,380		-
Investment in equity investment
designated at fair value through
other comprehensive income	-	(39,805)
Decrease in pledged deposits	-	26,258
Net cash flows from/(used in)

investing activities	(4,051)	1,038,366

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

For the six months ended 30 June 2020

For the six months

ended 30 June

2020 2019

RMB'000 RMB'000

(Unaudited) (Unaudited)

CASH FLOWS FROM FINANCING
ACTIVITIES
Interest paid	(206,633)	(367,440)
Proceeds from bank loans	3,290,903		832,300
Repayment of bank loans	(2,303,376)	(926,014)
Proceeds from other loans	83,634		-
Repayment of other loans	(10,859)	-
Principle portion lease payments	(22,864)	(15,313)
Capital injection by a non-controlling
shareholder	22,000		-
Dividends paid to owners of the
Company	(237,902)	(242,794)
Dividends paid to non-controlling
shareholders	(16,176)	(3,254)
Net cash flows from/(used in)

financing activities	598,727		(722,515)

34 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

For the six months ended 30 June 2020

For the six months

ended 30 June

2020 2019

Notes RMB'000 RMB'000

(Unaudited) (Unaudited)

NET INCREASE/(DECREASE)
IN CASH AND CASH
EQUIVALENTS		(46,388)	913,659
Cash and cash equivalents at
beginning of period		2,951,704		3,657,420
CASH AND CASH EQUIVALENTS

AT END OF PERIOD		2,905,316		4,571,079
ANALYSIS OF BALANCES


OF CASH AND CASH
EQUIVALENTS
Cash and bank balances		2,863,716		4,547,579
Non-pledged time deposits		41,600		23,500
Cash and cash equivalents as stated

in the consolidated statement of
financial position	16	2,905,316		4,571,079

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

NOTES TO INTERIM CONDENSED FINANCIAL INFORMATION

For the six months ended 30 June 2020

1. CORPORATE INFORMATION

The Company is a limited liability company established in the PRC. The registered office of the Company is located at 252 Wuhouci Da Jie, Chengdu, Sichuan Province, the PRC.

During the six months ended 30 June 2020 (the "Period), the Group was involved in the following principal activities:

investment holding;
management and operation of expressways and a high-grade toll bridge;
construction, operation of gas stations along expressways;
property development; and
finance lease business

In the opinion of the directors, STIG is the parent and the ultimate holding company of the Company, which is established in the PRC.

36 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

2.1 BASIS OF PREPARATION

The interim condensed consolidated financial information for the Period has been prepared in accordance with Hong Kong Accounting Standard ("HKAS") 34 Interim Financial Reporting. The interim condensed consolidated financial information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual financial statements for the year ended 31 December 2019.

Going concern basis

During the Period, the Group incurred a consolidated net loss of RMB164,758,000 (six months ended 30 June 2019: consolidated net profit of RMB832,876,000), and the Group had net current liabilities of RMB749,223,000 as at 30 June 2020. It was primarily due to the policy of toll fees waive to all vehicles passing through toll roads from 17 February 2020 to 6 May 2020 promulgated by Ministry of Transport of the PRC.

In view of these circumstances, the directors have given careful consideration to the future liquidity and performance of the Group and its available sources of finance in assessing whether the Group will have sufficient financial resources to continue as a going concern. As at 30 June 2020, based on the arrangements entered into with licensed banks in Mainland China, the Group's undrawn long-term banking facilities amounted to RMB7,850,000,000. Having considered the cash flows from operations and its available resource of finance, the directors are of the opinion the Group is able to meet in full its financial obligations as they fall due for the foreseeable future and it is appropriate to prepare the interim condensed consolidated financial information on a going concern basis.

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

2.2 CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES

The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those applied in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2019, except for the adoption of the following revised Hong Kong Financial Reporting Standards ("HKFRSs") for the first time for the current period's financial information.

Amendments to HKFRS 3	Definition of a Business
Amendments to HKFRS 9,	Interest Rate Benchmark Reform
HKAS 39 and HKFRS 7
Amendment to HKFRS 16	Covid-19-Related Rent Concessions
	(early adopted)
Amendments to HKAS 1 and	Definition of Material
HKAS 8

38 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

2.2 CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES (CONTINUED)

The nature and impact of the new and revised HKFRSs are described below:

Amendments to HKFRS 3 clarify and provide additional guidance on the definition of a business. The amendments clarify that for an integrated set of activities and assets to be considered a business, it must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. A business can exist without including all of the inputs and processes needed to create outputs. The amendments remove the assessment of whether market participants are capable of acquiring the business and continue to produce outputs. Instead, the focus is on whether acquired inputs and acquired substantive processes together significantly contribute to the ability to create outputs. The amendments have also narrowed the definition of outputs to focus on goods or services provided to customers, investment income or other income from ordinary activities. Furthermore, the amendments provide guidance to assess whether an acquired process is substantive and introduce an optional fair value concentration test to permit a simplified assessment of whether an acquired set of activities and assets is not a business. The Group has applied the amendments prospectively to transactions or other events that occurred on or after 1 January 2020. The amendments did not have any impact on the financial position and performance of the Group.

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

2.2 CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES (CONTINUED)

Amendments to HKFRS 9, HKAS 39 and HKFRS 7 address the effects of interbank offered rate reform on financial reporting. The amendments provide temporary reliefs which enable hedge accounting to continue during the period of uncertainty before the replacement of an existing interest rate benchmark. In addition, the amendments require companies to provide additional information to investors about their hedging relationships which are directly affected by these uncertainties. The amendments did not have any impact on the financial position and performance of the Group as the Group does not have any interest rate hedge relationships.
Amendment to HKFRS 16 provides a practical expedient for lessees to elect not to apply lease modification accounting for rent concessions arising as a direct consequence of the covid-19 pandemic. The practical expedient applies only to rent concessions occurring as a direct consequence of the covid-19 pandemic and only if (i) the change in lease payments results in revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change; (ii) any reduction in lease payments affects only payments originally due on or before 30 June 2021; and (iii) there is no substantive change to other terms and conditions of the lease. The amendment is effective retrospectively for annual periods beginning on or after 1 June 2020 with earlier application permitted.

40 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

2.2 CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES (CONTINUED)

The Group has early adopted the amendment on 1 January 2020 and elected not to apply lease modification accounting for all rent concessions granted by the lessors as a result of the covid-19 pandemic during the period ended 30 June 2020. The amendments did not have any impact on the financial position and performance of the Group as the Group does not have any material rent concessions granted by the lessors.

Amendments to HKAS 1 and HKAS 8 provide a new definition of material. The new definition states that information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements. The amendments clarify that materiality will depend on the nature or magnitude of information. The amendments did not have any impact on the Group's interim condensed consolidated financial information.

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

3. OPERATING SEGMENT INFORMATION

For the six months ended 30 June 2020

					Tourism,
	Toll roads	City	Financial	Energy	culture and
	and bridges	operation	investment	investment	education	Total
	RMB'000	RMB'000	RMB'000	RMB'000	RMB'000	RMB'000
	(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
SEGMENT REVENUE(note 4)	885,592	661,181	93,362	699,460	-	2,339,595
SEGMENT RESULTS	(156,822)	4,577	47,800	72,266	(35)	(32,214)
Reconciliation:
Unallocated income and gains						69,158
Corporate and other unallocated expenses						(126,914)

Loss before tax						(89,970)

For the six months ended 30 June 2019

					Tourism,
	Toll roads	City	Financial	Energy	culture and
	and bridges	operation	investment	investment	education		Total
	RMB'000	RMB'000	RMB'000	RMB'000	RMB'000		RMB'000
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
SEGMENT REVENUE	2,022,866	420,795	61,096	822,482	-	3,327,239
SEGMENT RESULTS	943,243	70,434	32,464	83,073	(3)	1,129,211
Reconciliation:
Unallocated income and gains						55,794
Corporate and other unallocated expenses						(112,592)

Profit before tax						1,072,413

42 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

3. OPERATING SEGMENT INFORMATION (CONTINUED)

The following table presents the information of assets and liabilities for the Group's operating segments as at 30 June 2020 and 31 December 2019, respectively.

30 June 2020

					Transportation,
	Toll roads	City	Financial	Energy	tourism, culture
	and bridges	operation	investment	investment	and education		Total
	RMB'000	RMB'000	RMB'000	RMB'000	RMB'000		RMB'000
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
SEGMENT ASSETS	27,117,722	5,002,272	2,807,310	211,451	6,896	35,145,651
Reconciliation:
Equity investments designated at fair value
through other comprehensive income						291,848
Financial assets at fair value through profit or
loss						76,879
Deferred tax assets						17,081
Pledged deposits						15,000
Restricted deposits						34,699
Cash and cash equivalents						2,905,316

Total assets						38,486,474


SEGMENT LIABILITIES	17,482,653	3,665,818	1,559,913	47,975	1,358	22,757,717
Reconciliation:
Dividend payables						108,970

Total liabilities						22,866,687

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

3. OPERATING SEGMENT INFORMATION (CONTINUED)

30 June 2020 (Continued)

											Transportation,
		Toll roads		City		Financial		Energy	tourism, culture
	and bridges		operation	investment	investment	and education		Total
		RMB'000		RMB'000		RMB'000		RMB'000		RMB'000	RMB'000
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)		(Unaudited)	(Unaudited)
OTHER SEGMENT INFORMATION
Share of profits and losses of associates	3,161	87		393		-		-	3,641
Share of profits and losses of joint ventures	4,800		-	(247)		-		-	4,553
Interest expenses	299,594	28,128	55	317	35	328,129
Depreciation and amortisation	444,254	5,026	1,942	7,949	469	459,640
Investments in associates	63,502	71,167	168,753		-		-	303,422
Investments in joint ventures	130,505		-	5,233		-		-	135,738
Capital expenditure*	665,711	1,152	612	1,569	24	669,068

Capital expenditure consists of additions to service concession arrangements and property, plant and equipment.

44 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

3. OPERATING SEGMENT INFORMATION (CONTINUED)

31 December 2019

									Transportation,
	Toll roads	City	Financial	Energy	tourism, culture
	and bridges	operation	investment	investment		and education	Total
	RMB'000	RMB'000	RMB'000	RMB'000		RMB'000	RMB'000
SEGMENT ASSETS	26,755,466		4,850,451	2,562,356	242,362	7,254	34,417,889
Reconciliation:
Equity investments designated at fair value
through other comprehensive income										372,789
Financial assets at fair value through profit or
loss										73,933
Deferred tax assets										157
Pledged deposits										15,000
Restricted deposits										29,102
Cash and cash equivalents										2,951,704

Total assets										37,860,574
SEGMENT LIABILITIES

16,892,562		3,380,983	1,372,064	48,344		2,168	21,696,121
Reconciliation:
Dividend payables										10,485

Total liabilities										21,706,606
OTHER SEGMENT INFORMATION


Share of profits and losses of associates	17,324		30		11,441	-		-	28,795
Share of profits and losses of joint ventures	(217)	-	(63)	-		-	(280)
Interest expenses	668,678		53,937	214	719		6	723,554
Depreciation and amortisation	841,701		9,183	3,615	16,175	85	870,759
Investments in associates	76,088		71,080	171,259	-		-	318,427
Investments in joint ventures	132,794		-	2,580	-		-	135,374
Capital expenditure*	1,646,795		14,646	692	1,805	162	1,664,100

Capital expenditure consists of additions to service concession arrangements and property, plant and equipment.

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

4. REVENUE, OTHER INCOME AND GAINS

An analysis of revenue is as follows:
	For the six months
	ended 30 June
	2020		2019
	RMB'000	RMB'000
	(Unaudited)	(Unaudited)
Revenue from contracts with
customers	2,241,392		3,247,140
Revenue from other sources
Finance lease	83,117		60,534
Commercial factoring	10,245		562
Gross rental income from operating
leases:
other lease payments,
including fixed payments	4,841		19,003

	98,203		80,099

	2,339,595		3,327,239

46 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

4. REVENUE, OTHER INCOME AND GAINS (CONTINUED)

For the six months ended 30 June 2020

													Transportation,
		Toll roads		City		Financial		Energy	tourism, culture
Segments	and bridges		operation	investment	investment	and education		Total
		RMB'000		RMB'000		RMB'000		RMB'000		RMB'000		RMB '000
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)		(Unaudited)	(Unaudited)
Types of goods or services
Toll income	885,592			-		-		-		-	885,592
Construction services		-	620,812		-		-		-	620,812
Sale of industrial products		-	8,283		-	699,460		-	707,743
Property development		-	3,922		-		-		-	3,922
Others		-	23,323		-		-		-	23,323

Total revenue from contracts with customers	885,592		656,340		-	699,460		-	2,241,392
Geographical markets


All revenues under HKFRS 15 are generated in Mainland China.
Timing of revenue recognition
Goods transferred at a point in time	885,592		35,528		-	699,460		-	1,620,580
Services transferred over time		-	620,812		-		-		-	620,812

Total revenue from contracts with customers	885,592		656,340		-	699,460		-	2,241,392

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

4. REVENUE, OTHER INCOME AND GAINS (CONTINUED)

For the six months ended 30 June 2019

									Transportation,
	Toll roads	City	Financial	Energy	tourism, culture
Segments	and bridges	operation	investment	investment		and education	Total
	RMB'000	RMB'000	RMB'000	RMB'000		RMB'000	RMB '000
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)		(Unaudited)	(Unaudited)
Types of goods or services
Toll income	2,022,866		-	-	-		-	2,022,866
Construction services	-	343,421	-	-		-	343,421
Sale of industrial products	-	28,473	-	822,482		-	850,955
Property development	-	-	-	-		-	-
Others	-	29,898	-	-		-	29,898

Total revenue from contracts with customers	2,022,866		401,792	-	822,482		-	3,247,140
Geographical markets


All revenues under HKFRS 15 are generated in Mainland China.
Timing of revenue recognition
Goods transferred at a point in time	2,022,866		58,371		-	822,482			-	2,903,719
Services transferred over time	-	343,421		-	-		-	343,421

Total revenue from contracts with customers	2,022,866		401,792	-	822,482		-	3,247,140

48 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

4. REVENUE, OTHER INCOME AND GAINS (CONTINUED)

An analysis of other income and gains is as follows:

	For the six months
	ended 30 June
	2020		2019
	RMB'000	RMB'000
	(Unaudited)	(Unaudited)
Other income and gains
Interest income from bank deposits	21,465		24,243
Interest income from discounting long-
term compensation receivables	4,266		5,244
Interest income from financial assets
arising from construction contracts	27,138		71,103
Government grants*	6,652		4,424
Road damage compensation income	22,172		16,078
Dividend income from equity
investments designated at fair
value through other comprehensive
income	7,290		6,621
Dividend income from financial assets
at fair value through profit or loss	2,380		-
Fair value gains on financial assets at
fair value through profit or loss	2,956		-
Miscellaneous	6,243		4,428

Total other income and gains	100,562		132,141

There were no unfulfilled conditions or contingencies relating to these grants.

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

5.	FINANCE COSTS
		For the six months
		ended 30 June
		2020		2019
		RMB'000	RMB'000
		(Unaudited)	(Unaudited)
	Interest on bank and other loans	353,949		372,063
	Interest on medium term notes	48,330		44,071
	Interest on lease liabilities	4,097		3,727

		406,376		419,861
	Less:
	Interest capitalised in respect of:
	- Service concession arrangements
	(note 9(c))	(30,222)	(11,030)
	- Properties under development
	(note 14)	(6,412)	(11,463)
	Interest recorded under cost of sales
	and other operating costs	(41,613)	(27,566)

		328,129		369,802
	Interest rate of borrowing costs


	capitalised	4.41%-7.8%	4.35%-6.18%

50 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

6. PROFIT/(LOSS) BEFORE TAX

The Group's profit/(loss) before tax is arrived at after charging/(crediting):

		For the six months
		ended 30 June
		2020		2019
	Notes	RMB'000	RMB'000
		(Unaudited)	(Unaudited)
Construction costs in respect of:
- Service concession arrangements*		616,736		323,207
- Construction works performed for
third parties*		3,962		16,250
Cost of sales of refined oil and
petrochemical products		602,902		737,133
Cost of properties sold		2,162		-
Cost of finance lease operation		41,613		27,566
Depreciation of property, plant and
equipment	9	45,677		35,568
Amortisation of service concession
arrangements	9	384,650		371,097
Depreciation of right-of-use assets	9	29,313		27,454
Employee benefit expenses		361,855		298,825
Repairs and maintenance		39,515		97,527
Auditor's remuneration		460		460
Impairment loss on trade receivables		5,180		-
Reversal of provision for impairment of
other receivables		(327)	-
Lease payments not included in the
measurement of lease liabilities		913		4,141
Loss on disposal of items of property,
plant and equipment		1,606		72

During the Period, employee costs of RMB14,827,000 (six months ended 30 June 2019: RMB14,105,000) and depreciation charge of RMB997,000 (six months ended 30 June 2019: RMB577,000) were included in the construction costs.

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

7. INCOME TAX

The major components of income tax expense are as follows:

For the six months

ended 30 June

2020 2019

RMB'000 RMB'000

(Unaudited) (Unaudited)

Current - Mainland China
Charged for the period	52,610		199,390
Underprovision/(overprovision) in
prior years	1,179		(2,118)
Deferred	(7,598)	891

Total tax charge for the Period	46,191		198,163

No Hong Kong profits tax has been provided as no assessable profits were earned in or derived from Hong Kong during the Period.

Except for the companies mentioned below that are entitled to a preferential tax rate, the subsidiaries, associates and joint ventures of the Company are required to pay corporate income tax at the standard tax rate of 25%.

52 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

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7. INCOME TAX (CONTINUED)

Pursuant to the Circular on Issues Concerning Tax Policies for In- depth Implementation of Western Development Strategies of the State Administration of Taxation, the Ministry of Finance and General Administration of Customs (Cai Shui [2011] No. 58) ("Circular"), the tax preferential treatments for the Western Region Development are valid until 2020. According to the Circular, "from 1 January 2011 to 31 December 2020, corporate income tax may be levied at a reduced tax rate of 15% for enterprises established in the western region and engaged in encouraged industries. The above-mentioned industries shall refer to enterprises whose principal businesses are the industrial projects prescribed in the Catalogue of Encouraged Industries in the Western Region (the "Catalogue") approved by the State Council, and shall be implemented as of 1 October 2014 and Revised Catalogue of Encouraged Industries in the Western Region approved by the State Council, and shall be implemented as of 28 July 2017, the income from which accounts for more than 70% of the total income of such enterprises."

Pursuant to the Circular on Issues Announcement on the Continuation of Cai Shui [2011] No. 58 for Western Development Strategies of the State Administration of Taxation, the Ministry of Finance and National Development and Reform Commission ("Circular [2020] No. 23"), the tax preferential treatments for the Western Region Development are valid until 2030. According to the Circular [2020] No. 23, "from 1 January 2021 to 31 December 2030, corporate income tax may be levied at a reduced tax rate of 15% for enterprises established in the western region and engaged in encouraged industries prescribed in the Catalogue if the income within the Catalogue accounts for more than 60% of the total income of such enterprises."

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

7. INCOME TAX (CONTINUED)

For entities within the scope of the transportation industry, i.e., the Company, Sichuan Chengle Expressway Company Limited, Chengdu Chengbei Exit Expressway Company Limited and Chengdu Airport Expressway Company Limited, an associate of the Company, which have been approved to enjoy the preferential tax rate of 15% before 2012 and have not changed their business operations, income tax of these entities for the Period continued to be calculated at a tax rate of 15%.

The share of tax attributable to joint ventures and associates amounting to RMB2,235,000 (six months ended 30 June 2019: RMB3,198,000) is included in "Share of profits and losses of joint ventures and associates" on the face of the interim condensed consolidated statement of profit or loss and other comprehensive income.

8. EARNINGS/(LOSSES) PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE COMPANY

The calculation of basic earnings/(losses) per share is based on the loss for the Period attributable to equity holders of the Company of RMB164,758,000 (profit for the period of six months ended 30 June 2019:RMB832,876,000) and the number of ordinary shares of 3,058,060,000 (six months ended 30 June 2019: 3,058,060,000) in issue during the Period.

No adjustment has been made to the basic loss per share amounts presented for the six months ended 30 June 2020 in respect of a dilution as the impact of the share options outstanding had an anti- dilutive effect on the loss per share amounts presented.

54 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

9. PROPERTY, PLANT AND EQUIPMENT, RIGHT- OF-USE ASSETS AND SERVICE CONCESSION ARRANGEMENTS

Movements in property, plant and equipment, right-of-use assets and service concession arrangements during the Period were as follows:

	Property,	Right-		Service
	plant and	of-use		concession
	equipment	assets	arrangements
	RMB'000	RMB'000		RMB'000
	(Unaudited)	(Unaudited)		(Unaudited)
Carrying amounts at opening of the
Period	760,079		458,490	25,423,037
Additions	22,110		4,773	646,958
Disposals	(5,587)	-		-
Depreciation/amortisation charged for
the Period	(45,677)	(29,313)	(384,650)

Carrying amounts at end of the Period	730,925		433,950	25,685,345

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

9. PROPERTY, PLANT AND EQUIPMENT, RIGHT- OF-USE ASSETS AND SERVICE CONCESSION ARRANGEMENTS (CONTINUED)

Notes:

At 30 June 2020 and 31 December 2019, the concession rights pertaining to certain expressways with net carrying amounts listed below were pledged to secure bank loans granted to the Group (note 18 (a)):

	30 June	31 December
	2020		2019
	RMB'000	RMB'000
	(Unaudited)
Chengle Expressway	4,300,490		3,689,688
Chengren Expressway	6,553,236		6,639,158
Suiguang-Suixi Expressways	11,739,866		11,817,261

	22,593,592		22,146,107

During the Period, the Group was undertaking the Chengle Expressway Expansion Construction Project and Tianqiong Expressways BOT Project. Total cost of RMB646,958,000 (six months ended 30 June 2019: RMB334,237,000), including construction costs of RMB616,736,000 and borrowing costs of RMB30,222,000 were incurred, among which RMB616,736,000 (six months ended 30 June 2019: RMB323,207,000) was sub-contracted to third party subcontractors.

56 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

9. PROPERTY, PLANT AND EQUIPMENT, RIGHT- OF-USE ASSETS AND SERVICE CONCESSION ARRANGEMENTS (CONTINUED)

Notes: (continued)

(continued)
In addition, construction revenue of RMB616,736,000 (six months ended 30 June 2019: RMB323,207,000) was recognised in respect of the construction service provided by the Group for the Chengle Expressway Expansion Construction Project and Tianqiong Expressways BOT Project by using the input method during the Period. Construction revenue was included in the additions to service concession arrangements which should be amortised upon the completion of these projects and commencement of operation.
Additions to service concession arrangements during the Period include interest capitalised in respect of bank loans amounting to RMB30,222,000 (six months ended 30 June 2019: RMB11,030,000) (note 5).

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

10. INVESTMENTS IN JOINT VENTURES

30 June 31 December

2020 2019

RMB'000 RMB'000

(Unaudited)

Share of net assets	135,738	135,374

Particulars of the Group's joint ventures, which were established and operate in Mainland China, are as follows:

	Percentage
	of ownership
	interest
	attributable to	Principal
Name	the Group	activities
Zhongxin Company	50% (indirect)	Asset management
Chengyu Development Fund	50% (direct)	Asset management
Chengyu Jianxin Fund Company	50% (direct)	Asset management
Sichuan Communications	49% (indirect)	Technology service
Network Technology Company
Limited

58 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

11. INVESTMENTS IN ASSOCIATES

	30 June	31 December
	2020		2019
	RMB'000	RMB'000
	(Unaudited)
Share of net assets	312,585		327,590
Provision for impairment	(9,163)	(9,163)

	303,422		318,427

Particulars of the Group's major associates, which were established and operate in Mainland China, are as follows:

	Percentage
	of ownership
	interest
	attributable to	Principal
Name	the Group	activities
Airport Expressway Company	25%	Operation of
		Chengdu
		Airport
Renshou Bank	9.997%	Expressway
		Banking
		operations

The Group's shareholdings in Airport Expressway Company are held by the Company, and the shareholdings in Renshou Bank are indirectly held by the Company.

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

12. EQUITY INVESTMENT DESIGNATED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

	30 June	31 December
	2020		2019
	RMB'000	RMB'000
	(Unaudited)
Listed equity investments, at fair value	96,538		118,919
Unlisted equity investments, at fair
value	195,310		253,870

	291,848		372,789

The above equity investments were irrevocably designated at fair value through other comprehensive income as the Group considers these investments to be strategic in nature.

60 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

13. LOANS TO CUSTOMERS

The Group's loans to customers, represent net investments in fixed assets leased to third party customers under finance lease contracts. The contracts run for initial periods of one to five years, with options for acquiring by the respective lessee the leased assets at nominal values at the end of the lease period. The total minimum lease receivables and their present values at the end of the reporting period are as follows:

30 June 2020
			Unearned	Total
	Net lease	finance	gross lease
	receivables	income	receivables
	RMB'000	RMB'000	RMB'000
	(Unaudited)	(Unaudited)	(Unaudited)
Amounts receivable:
- Within one year	984,749		115,039	1,099,788
- In the second year	878,363		60,938		939,301
- In the third to fifth years, inclusive	440,054		21,025		461,079

Total	2,303,166		197,002	2,500,168
Portion classified as current assets	(984,749)



Non-current portion	1,318,417

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

13. LOANS TO CUSTOMERS (CONTINUED)

31 December 2019
			Unearned	Total
	Net lease	finance	gross lease
	receivables	income	receivables
	RMB'000	RMB'000	RMB'000
Amounts receivable:
- Within one year	935,463		102,177	1,037,640
- In the second year	691,662		62,934	754,596
- In the third to fifth years, inclusive	489,110		16,729	505,839

Total	2,116,235		181,840	2,298,075
Portion classified as current assets	(935,463)



Non-current portion	1,180,772

At 30 June 2020, the Group has pledged lease receivables of RMB1,051,775,000 (31 December 2019: RMB863,212,000) to secure bank and other borrowings (note 18 (a)) granted to the Group. The loans to customers were secured by the collateral provided by the lessees including specific equipment or assets.

62 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

14. PROPERTIES UNDER DEVELOPMENT AND COMPLETED PROPERTIES HELD FOR SALE

	30 June	31 December
	2020		2019
	RMB'000	RMB'000
	(Unaudited)
Properties under development
Land costs	1,389,645		1,389,645
Development costs	878,597		629,848

	2,268,242		2,019,493
Completed properties held for sale


Carrying amount at 1 January	154,350		176,002
Impairment	-	(1,527)
Transfer to cost of properties sold	(2,162)	(20,125)
Carrying amount at end of the Period/

year	152,188		154,350

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

14. PROPERTIES UNDER DEVELOPMENT AND PROPERTIES HELD FOR SALE (CONTINUED)

The Group's properties under development and completed properties held for sale are situated on leasehold land in Mainland China. As at 30 June 2020, properties under development were expected to be completed or realised within normal operating cycle. Land use right of properties under development of RMB499,100,000 (31 December 2019: RMB859,600,000) was pledged to secure bank loan granted by Bank of Chengdu (note 18 (a)). Interest expenses on bank loans and interest expense arising from revenue contracts capitalised as part of properties under development by the Group during the Period was RMB6,412,000 (note 5) and RMB35,467,000, respectively (six months ended 30 June 2019: RMB11,463,000 and RMB27,566,000).

64 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

15. TRADE AND OTHER RECEIVABLES

		30 June	31 December
		2020		2019
	Notes	RMB'000	RMB'000
		(Unaudited)
Trade receivables
Trade receivables		2,101,036		2,188,404
Impairment		(5,180)	-

Trade receivables, net	(a)	2,095,856		2,188,404
Bill receivables		57,846		25,823
Other receivables
Deposits and other
receivables	(b)	673,158		488,847
Impairment		(108,524)	(108,851)

		564,634		379,996
Prepayments		68,322		86,949

Other receivables, net		632,956		466,945
Total trade and other

receivables		2,786,658		2,681,172

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

15. TRADE AND OTHER RECEIVABLES (CONTINUED)

Notes:

The Group's trading terms of trade receivables arising from sales of industrial products with its customers are mainly on credit, except for new customers, where payment in advance is normally required. The credit period is generally one month, extending up to three months for major customers.
The term of commercial factoring contracts ranged from four months to one year since the effective date of the relevant factoring contracts. The Group's credit terms of trade receivables arising from commercial factoring are generally on 30-day basis.
The Group's trade receivables which arose from construction contracts are settled in accordance with the terms specified in the contracts governing the relevant construction works. The Group does not have a standardised and universal credit period granted to its construction contract customers. The credit period of individual construction contract customers is considered on a case-by-case basis and is set out in the construction contracts, as appropriate.
According to the contracts governing the relevant construction works, trade receivables of RMB976,813,000(31 December 2019: RMB1,054,108,000) were to be settled by instalments within two to seven years upon completion of the relevant construction works and bore interest at rates ranging from 4.75% to 14.98% (2019: 4.75% to 14.98%) per annum. The remaining trade receivables are non-interest- bearing.

66 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

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15. TRADE AND OTHER RECEIVABLES (CONTINUED)

Notes: (continued)

(continued)
An aging analysis of the trade receivables as at the end of the reporting period, based on the invoice date and process billing date, is as follows:

	30 June		31 December
	2020	2019
	RMB'000		RMB'000
	(Unaudited)
Within 3 months	82,370	1,065,895
3 to 6 months	119,672	37,455
6 to 12 months	181,355	125,115
Over 1 year	1,712,459	959,939

	2,095,856	2,188,404

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

15. TRADE AND OTHER RECEIVABLES (CONTINUED)

Notes: (continued)

The Group's deposits and other receivables as at the end of the reporting period are analysed as follows:

	30 June	31 December
	2020		2019
	RMB'000	RMB'000
	(Unaudited)
Interest receivables	8,774		18,714
Long term compensation
receivables to be received within
one year	9,657		8,478
Toll income receivables	169,055		30,845
Deductible input value added tax	176,097		138,977
Deposits	13,567		13,217
Miscellaneous	296,008		278,616

	673,158		488,847
Impairment allowance	(108,524)	(108,851)

	564,634		379,996

68 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

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15. TRADE AND OTHER RECEIVABLES (CONTINUED)

Notes: (continued)

Amounts due from related parties, which are repayable on credit terms similar to those offered to the major customers of the Group, included in trade and other receivables as at the end of the reporting period, are as follows:

	30 June	31 December
	2020		2019
	RMB'000	RMB'000
	(Unaudited)
Fellow subsidiaries under common
control of STIG
- Other receivables	360		3,285
- Prepayments	-	1,086

	360		4,371

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

16. CASH AND CASH EQUIVALENTS AND PLEDGED DEPOSITS

	30 June	31 December
	2020		2019
	RMB'000	RMB'000
	(Unaudited)
Cash and bank balances	2,898,415		2,980,806
Time deposits	56,600		15,000

	2,955,015		2,995,806
Less: Pledged time deposits for

construction of road projects	15,000		15,000
Restricted deposits	34,699		29,102

Cash and cash equivalents	2,905,316		2,951,704

17. TRADE AND OTHER PAYABLES

		30 June	31 December
		2020		2019
	Notes	RMB'000	RMB'000
		(Unaudited)
Current portion:
Trade and bill payables	(a)	1,928,006	2,377,444
Other payables	(b)	692,490		760,061
Accruals	(c)	213,175		59,142
Deferred income		33,348		33,348

		2,867,019		3,229,995

70 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

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17. TRADE AND OTHER PAYABLES (CONTINUED)

Notes:

An aged analysis of the trade and bill payables as at the end of the reporting period, based on the invoice date, is as follows:

	30 June		31 December
	2020	2019
	RMB'000		RMB'000
	(Unaudited)
Within 3 months	603,471	656,707
3 to 6 months	63,757	5,230
6 to 12 months	30,325		-
Over 1 year	1,230,453	1,715,507

	1,928,006	2,377,444

The trade payables are non-interest-bearing. Except for retention money payables arising from construction services which are normally settled in the range from six months to two years, which is agreed with each individual supplier or contractor on a case-by-case basis and set out in the respective contracts.

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

17. TRADE AND OTHER PAYABLES (CONTINUED)

Notes: (continued)

Other payables at the end of the reporting period mainly included the following balances:

		30 June		31 December
		2020	2019
	Note	RMB'000		RMB'000
		(Unaudited)
Advances		34,094	30,666
Inter-network toll
collection	(i)	58,877	54,324
Payroll and welfare
payable		134,276	233,844
Taxes and surcharge
payables		44,235	28,753
Performance guarantee
deposits		190,457	180,547
Others		230,551	231,927

		692,490	760,061

The balance represented the expressway tolls pending for allocation to other expressway operators.

72 Sichuan Expressway Company Limited

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17. TRADE AND OTHER PAYABLES (CONTINUED)

Notes: (continued)

The balance as at 30 June 2020 consisted of interest accrued in respect of medium term notes of RMB38,116,000 (31 December 2019: RMB28,485,000) and interest-bearing bank loans of RMB175,059,000 (31 December 2019: RMB30,657,000).
Amounts due to related parties included in trade and other payables as at the end of the reporting period, which are on credit terms similar to those offered by the fellow subsidiaries to their major customers, are as follows:

	30 June		31 December
	2020	2019
	RMB'000		RMB'000
	(Unaudited)
Fellow subsidiaries under common
control of STIG
- Trade payables	64,709	76,599
- Other payables	602,785	1,065,701

	667,494	1,142,300

Except for the performance guarantee deposits which have a longer term of approximately two years, other payables are non-interest-bearing and have an average term of three months.

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

18. INTEREST-BEARING BANK AND OTHER BORROWINGS

		30 June	31 December
		2020		2019
	Notes	RMB'000	RMB'000
		(Unaudited)
Bank loans:
Secured	(a)	12,443,520	11,955,993
Unsecured		2,560,000	2,060,000
Medium term notes	(b)	2,490,000		2,490,000
Other borrowings
Secured	(a)	83,634		-
Unsecured	(c)	165,616		176,475
Lease liabilities		151,380		169,471

		17,894,150		16,851,939
Portion classified as current
liabilities		(5,603,060)	(3,541,803)

Non-current portion		12,291,090		13,310,136

At the end of the reporting period, all interest-bearing bank and other loans of the Group were denominated in RMB.

74 Sichuan Expressway Company Limited

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18. INTEREST-BEARING BANK AND OTHER BORROWINGS (CONTINUED)

Notes:

Interest-bearingbank and other borrowings were secured by:

		30 June	31 December
		2020		2019
	Notes	RMB'000	RMB'000
		(Unaudited)
		(Bank loans amount)
Secured by concession
rights of:	9(a)
Chengle Expressway		1,400,000		800,000
Chengren Expressway		2,381,264		2,381,264
Suiguang-Suixi
Expressways		7,760,000		7,910,000

		11,541,264		11,091,264
Secured by loans to
customers	13	853,890		659,729
Secured by land use
rights	14	132,000		205,000

		12,527,154		11,955,993

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

18. INTEREST-BEARING BANK AND OTHER BORROWINGS (CONTINUED)

Notes: (continued)

As at 30 June 2020, the Company had three (31 December 2019: three) tranches of outstanding medium term notes totalling RMB2,490,000,000 (31 December 2019: RMB2,490,000,000) issued to domestic institutional investors participating in the PRC interbank debt market. The interest rates for the medium term notes ranged from 3.48% to 6.30% (31 December 2019: 3.48% to 6.30%) per annum. The medium term notes were all issued at a par value of RMB100 per unit, and will be repaid between December 2020 and July 2024, with an original maturity period of five years.
As at 30 June 2020, the Group's unsecured other borrowings consisted of a shareholder's loan of loan of RMB112,240,000 (31 December 2019: RMB112,240,000) granted to a subsidiary within the Group by its non- controlling shareholder, bearing interest at annual interest rate of 7.80% (31 December 2019: 7.80%) (note 21(d)), and a loan of RMB53,376,000 (31 December 2019: 64,235,000) granted by an independent party, bearing interest at annual interest rate of 6.175% (31 December 2019: 6.175%).

19. DIVIDENDS

At a meeting of the board of directors held on 27 August 2020, the directors of the Company resolved not to pay an interim dividend to shareholders (six months ended 30 June 2019: Nil).

The proposed final dividend of RMB0.110 per ordinary share for the year ended 31 December 2019 (2018: RMB0.100) was declared during the Period and fully paid on 9 July 2020.

76 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

20. COMMITMENTS

The Group had the following commitments at the end of the reporting period:

	30 June		31 December
	2020	2019
	RMB'000		RMB'000
	(Unaudited)
Contracted, but not provided for:
Service concession arrangements	6,463,260	3,264,316

21. RELATED PARTY TRANSACTIONS

The Group had the following transactions with related parties during the Period:

During the Period, the aggregate service fee payable to Sichuan Zhineng Transportation System Management Company Limited, a subsidiary under common control of STIG, in relation to the provision of a computer system for highway network toll fee collection and supportive technological services to the Group amounted to approximately RMB3,636,000 (six months ended 30 June 2019: RMB8,339,000). The fee was determined based on a service charge of 0.4% of toll income or RMB25,000,000 per annum, whichever is lower.

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

21. RELATED PARTY TRANSACTIONS (CONTINUED)

During the Period, the Company leased out a certain part of its office buildings to STIG for half-year rental of RMB1,221,000 (six months ended 30 June 2019: RMB1,221,000). The directors consider that the office rental income received by the Group from STIG as determined under the tenancy agreement are based on the market rate for similar premises in similar locations.
During the Period, the Group purchased raw materials, machinery and electronic equipment for various infrastructure construction projects from subsidiaries of STIG with an aggregate amount of RMB319,000 (six months ended 30 June 2019: RMB100,000), based on the market price.
As at 30 June 2020, Renshou Landmark Company had an outstanding loan due to its non-controlling shareholder, Trading Property Company amounting to RMB112,240,000, which will be repaid in September 2022. This balance is unsecured, with an interest rate of 7.80%. During the Period, interest expenses to be paid by Renshou Landmark Company to Trading Landmark Company totalled RMB4,428,000 (six months ended 30 June 2019: RMB3,308,000).

78 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

21. RELATED PARTY TRANSACTIONS (CONTINUED)

During the Period, Sichuan Trading Real Estate Co., Ltd., a subsidiary under common control of STIG was engaged in provision of sales agent service for the Renshou Landmark real estate project of the Group. Sales commission recognised during the Period was approximately RMB7,221,000 (six months ended 30 June 2019: RMB6,471,000). The prices of such works are usually determined through public tender and bidding process.
During the Period, a subsidiary under common control of STIG was engaged by the Group to provide construction and maintenance works. The prices of such works are usually determined through public tender and bidding process. Construction and maintenance cost recognised by the Group for such services amounted to RMB254,522,000 (six months ended 30 June 2019: RMB280,739,000).
As at 30 June 2020, Commercial Factoring Company had an outstanding commercial factoring loan of RMB49,846,000 granted to a subsidiary under common control of STIG. The relevant terms of the factoring service are similar with those granted to other customers, usually determined through risk assessment. During the Period, the revenue recognised by the Group for such service amounted to RMB1,280,000 (six months ended 30 June 2019: RMB Nil).

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

21. RELATED PARTY TRANSACTIONS (CONTINUED)

Compensation of the key management personnel of the Group during the Period:

	For the six months
	ended 30 June
	2020		2019
	RMB'000	RMB'000
	(Unaudited)	(Unaudited)
Fees	160		160
Other emoluments:

Salaries, allowances and
benefits in kind	4,194		3,413
Pension scheme
contributions	105		221
Supplementary pension
scheme contributions	209		288

	4,508		3,922
Total compensation paid to key

management personnel	4,668		4,082

These transactions were carried out in accordance with the terms of agreements governing such transactions.

80 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

22. FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS

The carrying amounts and fair values of the Group's financial instruments, other than those with carrying amounts that reasonably approximate to fair values due to short term to maturity, are as follows:

	Carrying amounts	Fair values
	30 June	31 December	30 June	31 December
	2020		2019	2020	2019
	RMB'000	RMB'000	RMB'000	RMB'000
	(Unaudited)			(Unaudited)
Financial assets:
Pledged deposits, non-current
portion	-	15,000	-	15,000
Restricted deposits	34,699		29,102	34,699	29,102
Long-term compensation
receivables, non-current
portion	14,353		24,010	14,353	24,010
Loans to customers, non-current
portion	1,318,417	1,180,772	1,318,417	1,180,772
Equity investments designated
at fair value through other
comprehensive income	291,848	372,789	291,848	372,789

	1,659,317		1,621,673	1,659,317	1,621,673
Financial liabilities:


Interest-bearing bank and other
loans:
- Bank loans	15,003,520		14,015,993	14,081,751	13,520,011
- Medium term notes	2,490,000		2,490,000	2,460,504	2,415,135
- Other borrowings	249,250		112,240	235,817	102,321

	17,742,770		16,618,233	16,778,072	16,037,467

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

22. FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS (CONTINUED)

Management has assessed that the fair values of cash and cash equivalents, the current portion of pledged deposits, trade receivables, trade payables, financial assets included in other receivables, and financial liabilities included in other payables and accruals approximate to their carrying amounts largely due to the short term maturities of these instruments.

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

The fair values of the non-current portion of the Group's long term compensation receivable, loan to customers and interest-bearing bank and other loans have been calculated by discounting the expected future cash flows using rates currently available for instruments with similar terms, credit risk and remaining maturities, adjusted by the Group's own non-performance risk where appropriate.

82 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

22. FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS (CONTINUED)

The fair values of listed equity investment are based on quoted market prices. The fair values of unlisted equity investments designated at fair value through other comprehensive income and financial assets at fair value through profit or loss have been estimated using a market-based valuation technique based on assumptions that are not supported by observable market prices or rates. The valuation requires the directors to determine comparable public companies (peers) based on industry, size, leverage and strategy, and to calculate an appropriate price multiple, such as enterprise value to earnings before interest, taxes, depreciation and amortisation ("EV/EBITDA") multiple and price to earnings ("P/E") multiple, for each comparable company identified. The multiple is calculated by dividing the enterprise value of the comparable company by an earnings measure. The trading multiple is then discounted for considerations such as illiquidity and size differences between the comparable companies based on company- specific facts and circumstances. The discounted multiple is applied to the corresponding earnings measure of the unlisted equity investments to measure the fair value. The directors believe that the estimated fair values resulting from the valuation technique, which are recorded in the consolidated statement of financial position, and the related changes in fair values, which are recorded in other comprehensive income, are reasonable, and that they were the most appropriate values at the end of the reporting period.

During the Period, there were no transfers of fair value measurements between Level 1 and Level 2 and no transfers into or out of Level 3 for financial assets (six months ended 30 June 2019: Nil).

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

22. FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS (CONTINUED)

Fair value hierarchy

The following tables illustrate the fair value measurement hierarchy of the Group's financial instruments:

Assets measured at fair value:

		Fair value measurement using

	Quoted prices	Significant		Significant
		in active	observable	unobservable
		markets	inputs		inputs
		(Level 1)	(Level 2)		(Level 3)	Total
		RMB'000	RMB'000		RMB'000	RMB'000
		(Unaudited)	(Unaudited)		(Unaudited)	(Unaudited)
As at 30 June 2020
Financial assets:
Equity investments designed
at fair value through other
comprehensive income:
- Listed equity investments	96,538		-		-	96,538
- Unlisted equity investments		-	-	195,310	195,310
Financial assets at fair value
through profit or loss		-	-	76,879	76,879

	96,538		-	272,189	368,727

84 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

22. FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS (CONTINUED)

Fair value hierarchy (continued)

Assets measured at fair value: (continued)

		Fair value measurement using

	Quoted prices	Significant		Significant
		in active	observable	unobservable
		markets	inputs		inputs
		(Level 1)	(Level 2)		(Level 3)	Total
		RMB'000	RMB'000		RMB'000	RMB'000
		(Unaudited)	(Unaudited)		(Unaudited)	(Unaudited)
As at 31 December 2019
Financial assets
Equity investments designed
at fair value through other
comprehensive income:
- Listed equity investment	118,919	-		-	118,919
- Unlisted equity investments		-	-	253,870	253,870
Financial assets at fair value
through profit or loss		-	-	73,933	73,933

	118,919		-	327,803	446,722

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

22. FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS (CONTINUED)

Fair value hierarchy (continued)

Assets for which fair values are disclosed:

		Fair value measurement using

	Quoted prices	Significant		Significant
		in active	observable	unobservable
		markets	inputs		inputs
		(Level 1)	(Level 2)		(Level 3)	Total
		RMB'000	RMB'000		RMB'000	RMB'000
		(Unaudited)	(Unaudited)		(Unaudited)	(Unaudited)
As at 30 June 2020
Financial assets:
Restricted deposits		-	34,699		-	34,699
Long term compensation
receivables, non-current
portion		-	-	14,353	14,353
Loan to customers, non-current
portion		-	-	1,318,417	1,318,417

		-	34,699	1,332,770	1,367,469

86 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

22. FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS (CONTINUED)

Fair value hierarchy (continued)

Assets for which fair values are disclosed: (continued)

		Fair value measurement using

	Quoted prices	Significant		Significant
		in active	observable	unobservable
		markets	inputs		inputs
		(Level 1)	(Level 2)		(Level 3)	Total
		RMB'000	RMB'000		RMB'000	RMB'000
		(Unaudited)	(Unaudited)		(Unaudited)	(Unaudited)
As at 31 December 2019
Financial assets:
Pledged deposits, non-current
portion		-	15,000		-	15,000
Restricted deposits		-	29,102		-	29,102
Long term compensation
receivables, non-current
portion		-	-	24,010	24,010
Loan to customers, non-current
portion		-	-	1,180,772	1,180,772

		-	44,102	1,204,782	1,248,884

2020 Interim Report

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

22. FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS (CONTINUED)

Fair value hierarchy (continued)

Liabilities for which fair values are disclosed:

		Fair value measurement using

	Quoted prices	Significant		Significant
		in active	observable	unobservable
		markets	inputs		inputs
		(Level 1)	(Level 2)		(Level 3)	Total
		RMB'000	RMB'000		RMB'000	RMB'000
		(Unaudited)	(Unaudited)		(Unaudited)	(Unaudited)
As at 30 June 2020
Financial liabilities:
Interest-bearing bank and other
loans		-	-	16,778,072	16,778,072
As at 31 December 2019


Financial liabilities:
Interest-bearing bank and other
loans		-	-	16,037,467	16,037,467

88 Sichuan Expressway Company Limited

INTERIM CONDENSED CONSOLIDATED

FINANCIAL INFORMATION (CONTINUED)

23. CONTINGENT LIABILITIES

As at 30 June 2020, the Group did not have any material contingent liabilities.

24. EVENTS AFTER THE REPORTING PERIOD

As at the date of approval of the interim condensed consolidated financial information, the Group had no event after the reporting period that need to be disclosed.

25. APPROVAL OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION

The interim condensed consolidated financial information was approved and authorised for issue by the board of directors on 27 August 2020.

2020 Interim Report

CHANGES IN SHARE CAPITAL AND SHAREHOLDING OF SUBSTANTIAL SHAREHOLDERS

DURING THE REPORTING PERIOD, THERE WAS NO CHANGE IN THE TOTAL NUMBER OF SHARES AND CAPITAL STRUCTURE OF THE COMPANY.

AS AT 30 JUNE 2020, THE COMPANY HAD A TOTAL OF 57,590 SHAREHOLDERS, INCLUDING 57,330 HOLDERS OF A SHARES AND 260 HOLDERS OF H SHARES.

SUBSTANTIAL SHAREHOLDERS' AND OTHER PERSONS' INTERESTS IN SHARES AND UNDERLYING SHARES

As at 30 June 2020, the interests and short positions of the Shares and underlying shares of the Company held by substantial Shareholders or other persons (other than the Directors, Supervisors and chief executives of the Company) as recorded in the register of interests required to be kept by the Company pursuant to section 336 of the SFO, or as otherwise notified to the Company and the Hong Kong Stock Exchange are set out below:

90 Sichuan Expressway Company Limited

CHANGES IN SHARE CAPITAL AND SHAREHOLDING OF SUBSTANTIAL SHAREHOLDERS (CONTINUED)

Approximate

percentage in

Percentage in

Number of the

the total issued

the share capital

Type of

Long position/

Company's

share capital of

of A Shares/

Name

short position

Shares held

the Company

H Shares

Capacity

STIG

A Shares

Long position

1,035,915,462

33.87%

47.90%

Beneficial

owner

H Shares

Long position

60,854,200

1.99%

6.80%

Beneficial

owner

Total:

1,096,769,662

35.86%

Beneficial

owner

China Merchants

A Shares

Long position

664,487,376

21.73%

30.72%

Beneficial

Expressway Company

owner

H Shares

Long position

96,458,000

3.15%

10.77%

Interest in

controlled

corporation (1)

Total:

760,945,376

24.88%

Note (1): Cornerstone Holdings Limited is wholly owned by China Merchants Expressway Company, which is therefore deemed to be interested in the H shares held by Cornerstone Holdings Limited under the SFO.

Save as disclosed above, as at 30 June 2020, no persons (other than the Directors, Supervisors and chief executives of the Company) had registered interests or short positions in the Shares and underlying Shares of the Company which were required to be recorded in accordance with Section 336 of the SFO.

2020 Interim Report

CHANGES IN SHARE CAPITAL AND SHAREHOLDING OF SUBSTANTIAL SHAREHOLDERS (CONTINUED)

IV. CHANGE IN THE CONTROLLING SHAREHOLDER OF THE COMPANY

During the Reporting Period, there was no change in the controlling Shareholder of the Company, which remained as STIG.

PURCHASE, REDEMPTION OR SALE OF LISTED SECURITIES OF THE COMPANY

Neither the Company nor any of its subsidiaries purchased, redeemed or sold any of the Company's listed securities during the Reporting Period.

VI. ISSUE AND LISTING OF SECURITIES

As approved by CSRC with the approval document (Zheng Jian Xu Ke [2015] No. 1484), the Company issued the domestic fixed-rate corporate bonds publicly in a total amount of RMB1 billion on 17 June 2016, with a term of five years and issuing number of 10,000,000. This tranche of bonds was issued at nominal value of RMB100 each. The final coupon rate was 3.48%. The actual net proceeds raised after deducting issuance expenses amounted to RMB996 million and were to be used for loan repayment and replenishment of working capital. This tranche of bonds (bond name: 16 Chengyu 01; bond code: 136493) has been listed on SSE on 11 July 2016 and will expire on 17 June 2021. As at 30 June 2020, the Company has paid the interest for four years in full in respect of its bond named "16 Chengyu 01" according to schedule.

92 Sichuan Expressway Company Limited

DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT

SHAREHOLDINGS OF DIRECTORS, SUPERVISORS AND CHIEF EXECUTIVES

As at 30 June 2020, interests and short positions held by Directors, Supervisors and chief executives of the Company in Shares, underlying shares or bonds of the Company or its associated corporation (as defined in Part XV of the SFO) that, by virtue of Divisions 7 and 8 of the SFO, which shall be reported to the Company and the Stock Exchange (including interests and short positions, by virtue of the SFO or other regulations, deemed to be or treated as held by these directors, supervisors and chief executives); or any interests or short positions that shall be recorded in the register required to be kept under Section 352 of the SFO; or interests or short positions that, by virtue of Model Code as set out in Appendix 10 to the Listing Rules, shall be notified to the Company and the Stock Exchange, are as follows:

				Approximate	Approximate
				percentage in	percentage
				the total	in the share
			Number of the	issued share	capital of
	Class of	Long position/	Company's	capital of	A Shares/
Name	Shares	Short position	Shares held	the Company	H Shares	Capacity
Gan Yongyi	A Shares	Long position	50,000	0.0016%	0.0023%	Beneficial owner
Luo Maoquan	A Shares	Long position	10,000	0.0003%	0.0005%	Beneficial owner

2020 Interim Report

DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT (CONTINUED)

CHANGES IN DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT

On 17 January 2020, Mr. Gan Yongyi was elected as the Chairman of the Board of the Company as was considered and approved at the 3rd meeting of the seventh session of the Board.

On 29 April 2020, Mr. Ni Shilin resigned as a director and the Vice Chairman of the Board of the Company due to work rearrangement; Mr. Luo Maoquan resigned as a Director and a deputy general manager of the Company due to work rearrangement; on the same day, Mr. You Zhiming was appointed as a deputy general manager of the Company as was considered and approved at the 5th meeting of the seventh session of the Board of the Company.

On 3 June 2020, Mr. Feng Bing resigned as a supervisor and the Chairman of the Supervisory Committee of the Company due to work rearrangement; Mr. Meng Jie resigned as a supervisor of the Company due to work rearrangement; on the same day, Mr. Yang Guofeng was elected as a non-executive Director of the seventh session of the Board of the Company and Ms. Ma Yonghan was elected as an executive Director of the seventh session of the Board of the Company, Mr. Luo Maoquan and Ms. Gao Ying were elected as supervisors of the seventh session of the Supervisory Committee of the Company as was considered and approved at the 2019 annual general meeting of the

94 Sichuan Expressway Company Limited

DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT (CONTINUED)

Company; on the same day, Mr. Yang Guofeng was elected as the vice chairman of the Board and Mr. Peng Chi was elected as a deputy general manager of the Company as was considered and approved at the 6th meeting of the seventh session of the Board held; Mr. Luo Maoquan was elected as the Chairman of the Supervisory Committee as was considered and approved at the 5th meeting of the seventh session of the Supervisory Committee.

On 27 July 2020, Mr. Gan Yongyi, the Chairman of the Board and the General Manager of the Company, resigned from his position as the general manager due to work rearrangement; on the same day, Mr. Li Wenhu was elected as the Vice Chairman of the Board, Mr. Li Wenhu was appointed as the general manager of the Company and Mr. Liu Dong was appointed as the chief engineer as was considered and approved at the 7th meeting of the seventh session of the Board held.

2020 Interim Report

MANAGEMENT'S DISCUSSION AND ANALYSIS

BUSINESS REVIEW AND ANALYSIS
1. Results overview

The Group is principally engaged in the investment, construction, operation and management of expressway infrastructure projects, and carries out diversified operations which are highly relevant to our principal business. In the first half of 2020, due to the impact of the temporary toll-free policy resulting from the COVID-19 pandemic, the Group's operating results was unprecedentedly shocked, with significant decrease in toll income and material influence on relevant business diversification. However, the Group made great joint effort to overcome difficulties by taking precise response, strengthened budget management and cost control, and improved operation management level, accelerated the construction of key projects, implementing active response measures against the adverse influence of the pandemic. While seriously implemented the toll-free policy and contributed to the revival of social economy, the Group also accelerated the development and the restoration to normal track of its main businesses, to ensure the main performance indicators to turn normal steadfastly.

96 Sichuan Expressway Company Limited

MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)

During the Reporting Period, the net revenue of the Group amounted to approximately RMB2,339,595,000, representing a decrease of approximately 29.68% year-on-year, among which the net income from toll roads and bridges segment amounted to approximately RMB885,592,000, down approximately 56.22% year-on-year; the net revenue from financial investment segment amounted to approximately RMB93,362,000, up approximately 52.81% year-on-year; the net revenue from city operation segment amounted to approximately RMB661,181,000, representing an increase of approximately 57.13% year-on-year. The net revenue from energy investment segment amounted to approximately RMB699,460,000, down approximately 14.96% year-on-year. The profit attributable to the owners of the Company was approximately RMB(164,758,000), representing

decrease of 119.78% year-on-year. Basic earnings per Share was approximately RMB(0.054) (the same period of 2019: approximately RMB0.272). As at 30 June 2020, the Group's total assets amounted to approximately RMB38,486,474,000 and net assets amounted to approximately RMB15,619,787,000.

2020 Interim Report

MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)

Operating conditions of the toll roads and bridges business of the Group

During the Reporting Period, the operating conditions of all the expressways of the Group were as follows:

						Toll income
		Average daily traffic flow	(before deduction of turnover tax)
			(vehicles)			(RMB'000)
	Shareholding	For the	Same period	Increase/	For the	Same period	Increase/
Item	percentage	Period	in 2019	decrease	Period	in 2019	decrease
	(%)	(note 1)	(note 2)	(%)			(%)
Chengyu Expressway	100.00	26,858	20,548	30.71	224,854	481,564	-53.31
Chengya Expressway	100.00	50,499	39,549	27.69	221,367	487,766	-54.62
Chengren Expressway	100.00	43,681	40,072	9.01	228,633	498,998	-54.18
Chengle Expressway	100.00	27,653	32,062	-13.75	102,826	307,763	-66.59
Chengbei Exit Expressway
(including Qinglongchang
Bridge)	60.00	57,550	54,790	5.04	28,741	57,816	-50.29
Suiguang Expressway	100.00	6,256	5,842	7.09	55,033	109,005	-49.51
Suixi Expressway	100.00	2,913	3,401	-14.35	27,786	87,886	-68.38

Note 1: Average daily traffic flow for the Period excludes traffic flow which is toll-free during the pandemic period, shall be measured on a 56-day basis from 6 May 2020 to 30 June 2020.

Note 2: Average daily traffic flow for the corresponding period in 2019 shall be measured on a 61-day basis from 1 May 2019 to 30 June 2019.

98 Sichuan Expressway Company Limited

MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)

D u r i n g t h e R e p o r t i n g P e r i o d, t h e t o l l i n c o m e (b e f o r e deduction of turnover taxes) of the Group was approximately RMB889,240,000, representing a decrease of approximately 56.21% as compared with the same period last year. The percentage of the toll income (after deduction of turnover taxes) in the Group's revenue was approximately 37.85%, representing

decrease of approximately 23.19 percentage points as compared with the same period last year. During the Reporting Period, the following factors constituted combined effects on the overall operating performance of the Group's expressways:

Economic factors
In the first half of 2020, the COVID-19 pandemic shocked the national economy, the world economy had experienced a decline. Facing such severe challenge, pandemic prevention and control work was conducted together with economy and social development. Through

a series of policies, Chinese economy finally recovered steadfastly following a previous drop. The gross domestic product (GDP) for the first half amounted to RMB45,661.4 billion, representing a year-on-year increase of -1.6%; a m o n g w h i c h, t h e g r o s s p r o d u c t o f t h e s e c o n d quarter amounted to RMB25,011 billion, representing

year-on-yearincrease of 3.2%1. Sichuan Province achieved an economic growth following a previous

Source: Preliminary results released by the National Bureau of Statistics of China

Source: Preliminary results released by the Sichuan Provincial Bureau of Statistics

2020 Interim Report

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Sichuan Expressway Company Limited published this content on 17 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 September 2020 09:09:05 UTC

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Sichuan Expressway Company Limited

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