粤高速Ｂ：2026年半年度报告（英文版）

Guangdong Provincial Expressway Development Co., Ltd.

The Semi-Annual Report 2026

August 2026

I. Important Notice, Table of Contents and Definitions

The Board of Directors and the directors, and Senior Executives of the Company hereby warrant that at the year , there are no misstatement, misleading representation or important omissions in this report and shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof.

Mr.Miao Deshan, Company principal ,Mr Cheng Rui, General manager, Mr. Lu Ming, Chief of the accounting work, Ms.Yan Xiaohong, Chief of the accounting organ (chief of accounting ) hereby confirm the authenticity and completeness of the financial report enclosed in this Semi-annual report.

All the directors have attended the meeting of the board meeting at which this report was examined.

The toll revenues of Expressway is main source of the major business income of the company , The charge standard of vehicle toll must be submitted to the same level people's government for review and approval after the transport regulatory department of province, autonomous region or municipality directly under the central government in conjunction with the price regulatory department at the same level consented upon examination. Therefore, the adjustment trend of the charge price and the charge price if has the corresponding adjustment in the future price level when the cost of the company rises still depend on the approval of relevant national policies and government departments, and the company isn't able to make timely adjustment to the charge standard in accordance with the its own operation cost or the change of market supply demand. So, the change of charge policy and the adjustment of charge standard also have influence on the expressways operated by the company to some extent. So, the charging policy changes and charges adjustment will affect the highways operation of the company.

The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.

Table of Contents

I.Important Notice, Table of contents and Definitions

II. Company Profile & Financial Highlights.

III. Management Discussion & Analysis

IV. Corporate Governance and Environmental Social

V. Important Events

VI. Changes in shares and information about Shareholders

VII. Corporate Bond

VIII. Financial Report

Documents available for inspection

1. Accounting statements carried with personal signatures and seals of legal representative, General Manager, Chief Financial officer（Chief accountant）,the person in charge of the accounting department (the person in charge of the accounting )Financial Principal .

2.. The texts of all the Company's documents publicly disclosed on the newspapers and periodicals designated by China Securities Regulatory Commission in the report period.

Definition

II. Company Profile & Financial Highlights.

1.Company Profile

2. Contact person and contact manner

3. Other

1). Way of contact

Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or not

□ Applicable √ Not applicable

Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period, found more details in annual report 2025.

2). Information inquiry

Whether information disclosure and preparation place changed in reporting period or not

□ Applicable √ Not applicable

None of the official presses, website, and place of enquiry has been changed in the semi report period. found more details in Annual report 2025.

3). Other relevant information

Did any change occur to other relevant information during the reporting period?

□ Applicable √ Not applicable

4. Summary of Accounting Data and Financial Indicators

Whether it has retroactive adjustment or re-statement on previous accounting data □Yes √ No

5. Differences between accounting data under domestic and overseas accounting standards

1).Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed in the financial reports of differences in net income and net assets.

□ Applicable□√ Not applicable

None

2).Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards.

□ Applicable √Not applicable

None

6.Items and amount of non-current gains and losses

√Applicable □Not applicable

In RMB

Details of other profit and loss items that meet the non-recurring profit and loss definition

□ Applicable√ Not applicable

There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company. Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public -

-- Extraordinary Profit/loss

□ Applicable √ Not applicable

There are no items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public - -- Extraordinary Profit/loss.

III. Management Discussion & Analysis

Ⅰ.Main Business the Company is Engaged in During the Report Period

The Company is mainly engaged in tolling and maintenance of Guangfo Expressway,Fokai Expressway,Jingzhu Expressway Guangzhu Section and Guanghui Expressway investment in technological industries and provision of relevant consultation while investing in Shenzhen Huiyan Expressway Co.,Ltd.,Ganzhou Kangda Expressway Co.,Ltd.,Ganzhou Gankang Expressway Co.,Ltd.Zhaoqing Yuezhao Highway Co.,Ltd.,Guangdong Jiangzhong Expressway Co.,Ltd.,Guangdong Yuepu Technology Petty Loan Co.,Ltd.,Guoyuan Securities Co.,Ltd.,Garage electric pile Holding(Shenzhen)Co.,Ltd.and SPIC Yuetong Qiyuan Chip Power Technology Co.,Ltd..

As of the end of the reporting period,the company’s share-controlled expressway is 306.78 km,and the share-participation expressway is 295.88 km.

II. Analysis On core Competitiveness

(I) Regional Economic Advantages: Leveraging the Guangdong-Hong Kong-Macao Greater Bay Area to fully enjoy development dividends

The Company's core toll roads are situated in the Guangdong-Hong Kong-Macao Greater Bay Area, one of the most economically dynamic regions in China. As the nation's leading economic province, Guangdong Province achieved a Gross Domestic Product of RMB 14.58 trillion in 2025, ranking first in China for 37 consecutive years and accounting for 10.4 of the national GDP total. The region possesses robust foreign trade strength, The total import and export trade reached 9.49 trillion yuan, accounting for 20.9% of the national total, with the share rising for three consecutive years. The industrial structure continues to get better, with industries shifting towards high-end and smart manufacturing. The added value of high-tech manufacturing and equipment manufacturing accounts for 34.7% and 59.6% of large-scale industries, up 2.7 and 1.3 percentage points from last year, respectively. The thriving regional economy provides a solid demand foundation for the growth of traffic volume on expressways.

(II) Strategic Location Network: Core channel assets occupying key nodes of road network

The expressways invested in and held by the Company are all key components of the main framework of both national and provincial road networks, forming a strategic asset layout covering the core area of the Pearl River Delta:

(III) Rigid Demand Characteristics: Strong cash generation capability, prominent counter-cyclical attributes

Transportation demand on expressways is predominantly for essential travel, making it relatively less susceptible to macroeconomic fluctuations. The Company's toll road assets are situated in a core economic region with a GDP exceeding RMB 14 trillion, where passenger and freight transport demand is both robust and stable. The toll road business model is mature, ensuring timely and ample cash recovery and a stable financial structure. This endows the Company with strong risk resistance and sustainable operational capacity.

(IV) Sustained Momentum for Development: Regional strategic depth, vast growth potential

With the accelerated formation of the main skeleton of the national comprehensive three-dimensional transportation network comprising the "6 axes, 7 corridors, 8 channels," the deepening integration of the Guangdong-Hong Kong-Macao Greater Bay Area, and the implementation of Guangdong Province's "One Core, One Belt, One Zone" regional development strategy, the economic agglomeration effect and transportation demand in the regions where the Company's core toll roads are located will continue to strengthen. This will provide long-term impetus for future traffic volume growth and toll revenue enhancement.

III. Main business analysis

Ⅰ. General

During the reporting period, the company’s share in highway projects regarding traffic volume and toll revenue:

1.The Guangzhou-Zhuhai Section of the Beijing-Zhuhai Expressway recorded a slight YOY decline in traffic volume and toll revenue due to traffic diversion by surrounding road networks and ongoing reconstruction and expansion works on the section itself.

2. For Huiyan Expressway, due to its own reconstruction and expansion project has been completed and opened to traffic, the traffic flow and the toll revenue have increased YOY;

3. For Guangzhao Expressway, affected by the construction of its own reconstruction and expansion projects, the traffic flow and the toll revenue decreased YOY;

4. The traffic volume and toll revenue of the Jiangmen-Zhongshan Expressway rose YOY upon the completion and opening to traffic of its reconstruction and expansion project.

Year-on-year change of main financial data

In RMB

Major changes to the profit structure or sources of the Company in the reporting period

□ Applicable √Not applicable

None.

Component of Business Income

In RMB

Situation of Industry, Product and District Occupying the Company’s Business Income and Operating Profit with Profit over 10%

√ Applicable □Not applicable

In RMB

Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on latest on year’s scope of period-end.

□ Applicable √Not applicable

IV. Non-core business analysis

√ Applicable □Not applicable

In RMB

V. Condition of Asset and Liabilities

1.Condition of Asset Causing Significant Change

In RMB

2.Main assets overseas

□ Applicable √Not applicable

3.Asset and Liabilities Measured by Fair Value

√ Applicable □Not applicable

In RMB

Did any significant change occur to the attribute of the Company’s main asset measurement during the reporting period?

□ Yes √No

4. Assets right restriction till end of reporting period

The balance of restricted bank deposits at the end of the period was RMB 198,100.00, which was the land reclamation fund deposited into the fund custody account for the reconstruction and expansion project of Sanbao to Shuikou section of Fokai Expressway.

VI. Investment situation

1. General

√ Applicable □ Not applicable

2.Condition of Acquiring Significant Share Right Investment during the Report Period

Applicable □Not applicable

In RMB

3.Situation of the Significant Non-equity Investment Undergoing in the Report Period

Applicable □Not applicable

In RMB

4.Investment of Financial Asset

（1）Securities investment

√ Applicable □ Not applicable

In RMB

（2）Investment in Derivatives

□ Applicable √ Not applicable

The Company had no investment in derivatives in the reporting period.

5.Application of the raised capital

□ Applicable √ Not applicable

The Company had no application of the raised capital in the reporting period.

VII. Sales of major assets and equity

1. Sales of major assets

□ Applicable √ Not applicable

The Company had no sales of major assets in the reporting period.

2.Sales of major equity

□ Applicable √ Not applicable

VIII. Analysis of the Main Share Holding Companies and Share Participating Companies

√ Applicable □ Not applicable

Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company

In RMB

Subsidiaries obtained or disposed in the reporting period

□ Applicable √ Not applicable

IX．Structured vehicle controlled by the Company

□ Applicable √ Not applicable

X. Risks facing the Company and countermeasures

The company’s profits mainly come from the expressway tolls revenue and the toll charging standards shall be examined by the traffic authority of the provincial, autonomous region and the direct-controlled municipality people’s governments together with the same-level pricing authority and then submitted to the same-level people’s government for approval. Therefore, the charging price adjustment trend and the possibility of the charging price adjustment upon rising of the commodity price and the company cost in the future are still subject to relevant national policies and the approval of the governmental department. And the company can’t adjust the charging standards promptly based on its own operation cost or the market supply-demand changes. In conclusion, the charging policies change and the charging standards adjustment have the influence on the expressway business of the company to some extent.

XI. Formulation and implementation of market value management system and valuation boost plan

Whether the Company has established a market value management system

□YesNo

Whether the Company has disclosed plans for valuation boost.

□YesNo

XII. The implementation of the action plan of "Double improvement of quality and return".

Whether the Company has disclosed the action plan of "Double improvement of quality and return".

Yes □No

(I) Core Initiatives of the Action Plan

In order to respond to and practice the guiding ideology of "activating the capital market and boosting investors' confidence" put forward at the Meeting of the Political Bureau of the CPC Central Committee and"vigorously improving the quality and investment value of listed companies, taking more powerful and effective measures to stabilize the market and confidence" put forward at the executive meeting of the State Council, safeguard the interests of all shareholders and promote the long-term healthy and sustainable development of the Company, Guangdong Provincial Expressway Development Co., Ltd. (hereinafter referred to as "the Company") has formulated the action plan of "double improvement of both quality and returns". The measures are as follows:

(1)Adhere to high-quality development, focus on connotative growth, and optimize resource allocation.

(2) Effectively return to shareholders and share the fruits of development.

(3) Deepen market communication and strengthen investor relation management.

(I1) Implementation Progress

1.Focus on Core Business to Consolidate Development Foundation

The Company steadily pushes forward the reconstruction and expansion projects of its core road assets and continuously optimizes the road network layout:

(1) The reconstruction and expansion projects of the Guangzhou-Zhuhai Section of Beijing-Zhuhai Expressway, Guangzhou-Huizhou Expressway, Zhaoqing-Guangdong Expressway and Huizhou-Yantian Expressway are being implementedas planned, further widening and optimizing the regional traffic network, laying a solid foundation for the Company's sustainable development.

(2) The Company uses the service areas' quality upgrades as the implementation platform for the "Hundred Counties, Thousand Towns and Ten Thousand Villages Project", while also deepening the 'Green and Beautifu Guangdong' initiative, achieving a coordinated improvement of ecological, social, and economic benefits. The Zhishan Service Area (North Zone) on the Fokai Expressway, as Guangdong's first “near-zero carbon” new energy-themed service area, was selected as a “2025 National Typical Case of Innovative Development in Transport and Energy Integration.” The Yayao Service Area on the Fokai Expressway completed a microrenovation project of its smart water-saving system and was rated as the best in Guangdong Province in the national evaluation of featured service areas.

2. Continuous Cash Dividends, Sharing Development Results

The Company sticks to a steady dividend policy to genuinely enhance investors’ sense of gain. In the 2025 profit distribution plan, the cash dividend ratio remains at 70% of the net profit attributable to the paren company's owners, maintaining a high level of dividends and continuously rewarding shareholders for their trust.

3. Strengthen investor relations and improve communication quality

The Company has built an integrated online and offline communication system, keeping frequent interactions with investors through various channels such as shareholder meetings, earnings briefings, road shows, institutiona research, and the Shenzhen Stock Exchange's "Interactive Easy" platform. Since 2026, the Company has organized five institutional investor research and exchange activities, effectively boosting market recognition and value discovery.

IV Corporate Governance, Enviornmental and Social Responsibility

I. Changes of directors, supervisors and senior executives

√ Applicable □Not applicable

II. Profit distribution plan and capitalizing of common reserves plan for the Period

□ApplicableNot applicable

The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for the semi-annual.

III. Implementation of the company’s stock incentive plan, employee stock ownership plan or other employee incentives

□ApplicableNot applicable

The Company had no implementation of the company’s stock incentive plan, employee stock ownership plan or other employee incentives in the reporting period.

IV. Environmental information disclosure situation

Whether the listed companies and their main subsidiaries are included in the list of enterprises that disclose environmental information according to law

□Yes No

V. Social responsibility

In the first half of 2026, the Company thoroughly implemented the deployment and requirements of national and Guangdong provincial policies on transportation benefiting the people, attached equal importance to economic and social benefits, and actively fulfilled the social responsibilities of a listed company.

In terms of implementing preferential toll exemptions and reductions, the Company enforced various preferential policies in accordance with laws and regulations, including the green channel policy, toll-free access for light passenger vehicles during major holidays, and ETC discounts, effectively lowering logistics and transportation costs for enterprises and travel expenses for the public.

In terms of ensuring safe and unimpeded road traffic, the Company coordinated the advancement of overload prohibition at entrances, highway-police joint operations, intelligent patrols, and traffic flow guarantee during major holidays. At entrances of the Foshan-Kaiping Expressway, 8,986 over-limit vehicles were successfully denied access, representing a successful prohibition rate of 97.27%. The road administration patrols covered a cumulative mileage of 233,300 kilometers, and assistance was provided in handling 427 traffic accidents. On the Guangzhou-Huizhou Expressway, 67 potential safety hazards were identified and rectified; 7,284 overloaded and over-limit trucks were turned back. The road congestion incidents decreased by 40.88% YOY, and the active detection rate of abnormal incidents reached 97.66%. The Guangzhou-Zhuhai

Section of the Beijing-Zhuhai Expressway successfully fulfilled traffic safety and smooth flow assurance tasks during the Qingming Festival, May Day and Dragon Boat Festival holidays. It received 8,168 customer service and rescue calls, achieving a customer satisfaction rate of 100%.

In terms of upgrading travel service quality, the Company continued to improve new energy supporting facilities at service areas. The Yayao and Zhishan Service Areas on the Foshan-Kaiping Expressway provided charging services for 165,100 vehicles in the first half of the year. The charging efficiency during peak hours was lifted by deploying additional mobile charging vehicles and power banks. The “unmanned toll plaza” modernization of the Bichong station on the Guangfo Expressway has been completed and put into operation. Five mixed lanes have been equipped with self-service card issuance and payment terminals, allowing for autonomous passage in as little as 5 seconds. The Foshan-Kaihua Expressway continues to optimize the operation of the service area’s “Driver’s Home”, providing drivers and passengers with amenities such as rest areas and shower facilities, and actively engaging in volunteer services to benefit the public.Building on its existing charging piles, the Zhongshan Service Area on the Eastern Guangzhou-Zhuhai Expressway added 11 charging guns during the May Day holiday (including 1 ultra-fast charging gun and 10 fast charging guns). The real-time availability status was released via platforms including "e-Luchangtong" and Amap, effectively alleviating the range anxiety of new energy vehicle owners.

V Important Events

I. Commitments that the actual controller, shareholders, related party, the buyer and the company have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period

□ Applicable √ Not applicable

The Company has no commitments that the actual controller, shareholders, related party, the buyer and the company have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period

II. Non-operational fund occupation from controlling shareholders and its related party

□ Applicable √ Not applicable

No non-operational fund occupation from controlling shareholders and its related party in period.

III. External guarantee out of the regulations

□ Applicable √ Not applicable

No external guarantee out of the regulations occurred in the period.

IV. Appointment and non-reappointment (dismissal) of CPA

Whether the semi-annual financial report had been audited

□Yes √ No

The semi-annual report was not audited

V. Explanation on “non Qualified Opinion” from CPA by the Board and Supervisory Committee

□ Applicable √ Not applicable

VI. Explanation from the Board for “non Qualified Opinion” of last year’s

□ Applicable √ Not applicable

VII. Bankruptcy reorganization

□ Applicable √ Not applicable

No bankruptcy reorganization for the Company in reporting period

VIII. Lawsuit

Significant litigations and arbitrations

□ Applicable √ Not applicable

No such cases in the reporting period. Other lawsuits □ Applicable √ Not applicable

□ Applicable √ Not applicable

During the reporting period, the Company had no Penalty and rectification.

□ Applicable √ Not applicable

XI. Material related transactions

1. Related transactions in connection with daily operation □ Applicable √ Not applicable No such cases in the reporting period.

2. Related-party transactions arising from asset acquisition or sold □Applicable √ Not applicable

3. Related-party transitions with joint investments

□Applicable √ Not applicable

No such cases in the reporting period.

4. Connect of related liability and debt

□Applicable √Not applicable

Whether has non-operational contact of related liability and debts or not □Yes √ No

No non-operational contact of related liability or debts in Period

5. Transactions with related finance company, especially one that is controlled by the Company

√ Applicable □Not applicable

Deposit business

Note: The ending balance comprises a deposit principal of RMB 3,457,938,500 and an estimated interest income of RMB 57,872,600.

Loan business

Note: The aforementioned outstanding loan balance to Guangdong Provincial Transportation Group Finance Co., Ltd. includes the "non-overdue interest" component.

Credit extension or other financial services

6. Transactions with related finance company controlled by the Company

□ Applicable √ Not applicable

No such cases in the reporting period.

7. Other significant related-party transactions

√ Applicable □Not applicable

1.The Proposal on Concerning the Company Daily Associated Transactions Predicted of 2026 was reviewd and approved in the 35th meeting of the Tenth board of directors of the Company, Agree on the predicted daily associated transactions for the company headquarters, wholly-owned and holding subsidiaries of 2026, The total

transaction amount did not exceed 71.9599 yuan.

2. At the 35th meeting of the 10th Board of Directors of the Company, the Company reviewed and approved the Proposal on Signing the Lease Contract for Office Premises on the 45th and 46th Floors of Litong Plaza. The Company is authorized to continue leasing the entire units on the self-designated 45th and 46th floors of Litong Plaza from Guangdong Litong Development Investment Co., Ltd. as office premises for a lease term of 2 years, commencing on 5 May 2026 and ending on 4 May 2028. The monthly unit rental rate is set at RMB 202 per square meter for the period from 5 May 2026 to 4 May 2027, and RMB 208.04 per square meter for the period from 5 May 2027 to 4 May 2028.

The website to disclose the interim announcements on significant related-party transactions

XII. Significant contracts and execution

1.Entrustments, contracting and leasing

（1）Entrustment

□Applicable √ Not applicable

No such cases in the reporting period.

（2）Contracting

□Applicable √ Not applicable

No such cases in the reporting period.

（3）Leasing

Applicable □Not applicable

During the reporting period, the company generated rental income of RMB 8,750,221.07; the primary leased assets consisted of premises and buildings.

Project which generates profit or loss reaching over 10% of total profits of the Company during the Reporting Period

□ Applicable √ Not applicable

There were no leases with a 10% or greater impact on the Company’s gross profit in the Reporting Period.

2.Significant Guarantees

□Applicable √ Not applicable

No such cases in the reporting period.

3. Finance management on commission

□Applicable √ Not applicable

No such cases in the reporting period.

4. Other significant contract

□ Applicable √ Not applicable

No such cases in the reporting period.

XIII.Particulars about researches, visits and interviews received in this reporting period

√ Applicable □Not applicable

The Semi-Annual Report 2026

XIV. Explanation of other important events

□ Applicable √ Not applicable No such cases in the reporting period.

XV. Significant event of subsidiary of the Company

□ Applicable √ Not applicable

VI. Change of share capital and shareholding of Principal Shareholders

I. Changes in share capital

1. Changes in share capital

In shares

Reasons for share changed

√ Applicable □Not applicable

1.During the Reporting Period, 1,430,837 shares of "domestic legal person holding of restricted conditional shares" were converted into "domestic natural person holding of restricted conditional shares", "Foreign natural person holding of restricted conditional shares" Approval of Change of Shares □Applicable √Not applicable Ownership transfer of share changes □Applicable √Not applicable

Implementation progress of shares buy-back

□Applicable √Not applicable

Implementation progress of reducing holdings of shares buy-back by centralized bidding

□ Applicable √ Not applicable

Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable

to common shareholders of Company in latest year and period

□Applicable √Not applicable

Other information necessary to disclose for the company or need to disclosed under requirement from security regulators

□Applicable √Not applicable

2. Change of shares with limited sales condition

□Applicable √Not applicable

II. Securities issue and listing

□ Applicable √Not applicable

III. Shareholders and actual controlling shareholder

In Shares

The Semi-Annual Report 2026

Information of shareholders holding more than 5% of the shares, the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares participating in the lending of shares in securities lending and borrowing business

□ Applicable √ Not applicable

The top 10 shareholders and the top 10 shareholders of unrestricted tradable shares have changed compared with the previous period due to the securities lending/returning,

□ Applicable √ Not applicable

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period.

□ Yes √ No

The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy –back agreement dealing in reporting period.

IV. Changes of shares held by directors, supervisors and senior executives

□ApplicableNot applicable

Shares held by directors, supervisors and senior executives have no changes in reporting period, found more details in Annual Report 2025.

V. Changes in controlling shareholders or actual controllers

If the company has previously disclosed that its actual controller is planning a change in control but has not yet completed it, please explain the progress of the control transfer.

□ApplicableNot applicable

Change of controlling shareholder during the reporting period

□ApplicableNot applicable

The Company had no change of controlling shareholder during the reporting period

Change of actual controller during the reporting period

□ApplicableNot applicable

The Company had no change of actual controller during the reporting period

VI. Preferred stock

□ApplicableNot applicable

The Company had no preferred stock in the Period.

VII. Corporate Bond

□ApplicableNot applicable

VIII. Financial Report

I. Audit report

Has this semi-annual report been audited?

□Yes √No

The semi-annual report was not audited.

II. Financial statements

Currency unit for the statements in the notes to these financial statements: RMB

1. Consolidated balance sheet

Prepared by: Guangdong Provincial Expressway Development Co.,Ltd.

June 30,2026

In RMB

Legal Representative: Miao Deshan

General Manager: Cheng Rui

Person in charge of accounting：Lu Ming

Accounting Dept Leader: Yan Xiaohong

2.Parent Company Balance Sheet

In RMB

3.Consolidated Income statement

In RMB

The current business combination under common control, the net profits of the combined party before achieved net profit of RMB 0.00, last period the combined party realized RMB0.00

Legal Representative: Miao Deshan

General Manager: Cheng Rui

Person in charge of accounting：Lu Ming

Accounting Dept Leader: Yan Xiaohong

4. Income statement of the Parent Company

In RMB

5.Consolidated Cash flow statement

In RMB

6. Cash Flow Statement of the Parent Company

In RMB

7. Consolidated Statement on Change in Owners’ Equity

Amount in this period

In RMB

The Semi-Annual Report 2026

Amount in last year

In RMB

The Semi-Annual Report 2026

8.Statement of change in owner’s Equity of the Parent Company

Amount in this period

In RMB

Amount in last year

In RMB

III. Company Profile

1. Basic information of the IPO and share capital of the company

The Company was established in February 1993, which was originally named as Guangdong Fokai Expressway Co., Ltd. On June 30, 1993, it was renamed as Guangdong Provincial Expressway Development Co., Ltd. after reorganization pursuant to the approval of the Office of Joint Examination Group of Experimental Units of Share Holding System with YLSB (1993)No. 68 document. The share capital structure after reorganization is as follows: Composition of state-owned shares: The appraised net value of state-owned assets of Guangdong Jiujiang Bridge Co. and Guangfo Expressway Co., Ltd. as of January 31, 1993 confirmed by Guangdong Stateowned Asset Management Dept, i.e.,RMB 418.2136 million, was converted into 155.025 million shares. Guangdong Expressway Co. invested cash of RMB 115 million to subscribe for 35.9375 million shares. Other legal persons invested cash of RMB 286.992 million to subscribe for 89.685 million shares. Staff of the Company invested RMB 87.008 million to subscribe for 27.19 million shares. The total is RMB 307.8375 million shares.

Pursuant to the approval of Guangdong Economic System Reform Committee and Guangdong Securities Regulatory Commission with YTG (1996) No. 67 document, part of the shareholders of non-state-owned legal person shares transferred 20 million non-state-owned legal person shares to Malaysia Yibao Engineering Co., Ltd. in June 1996.

Pursuant to the approval of Securities Commission under the State Council with WF (1996) No. 24 approval document and that of Guangdong Economic System Reform Committee with YTG (1996) No. 68 document, the Company issued 135 million domestically listed foreign investment shares (B shares) to overseas investors at the price of HKD 3.54 (equivalent to RMB 3.8) with the par value of each share being RMB 1 during June to July 1996.

Pursuant to the reply of the Ministry of Foreign Trade and Economic Cooperation of the People’ s Republic of China with (1996) WJMZYHZ No. 606 document, the Company was approved to be a foreign-invested joint stock company limited.

The Company distributed dividends and capitalized capital common reserve for the year 1996 in the following manner: The Company paid 1.7 bonus shares f or each 10 shares and capitalized capital common reserve on 3.3- for-10 basis.

Pursuant to the approval of China Securities Regulatory Committee (CSRC) with ZJFZ (1997) No. 486 and No. 487 document, the Company issued 100 million public shares (A shares) at the price of RMB 5.41 in term of “payable in full on application, pro-rate placing and subject to refund” with the par value of each share being RMB 1 in January 1998.

In accordance with the Resolutions of the 1999 Shareholders’ General Meeting of the Company and pursuant to the approval of Guangzhou Securities Regulatory Office under CSRC with GZZJH (2000) No. 99 and that of CSRC with ZJGSZ (2000) No. 98, the Company offered 3 Rights for every 10 shares of 764.256249 million shares at the price of RMB 11 per Right.73,822,250 ordinary shares were actually placed to all .

Pursuant to the reply of the General Office of the People’ s Government of Guangdong Province with YBH (2000) No. 574 document, the state-owned shares were transferred to Guangdong Communication Group Co.,

Ltd. (Group Co.) for holding and management without compensation.

.Pursuant to the approval of Shenzhen Stock Exchange, 53.0205 million staff shares of the Company (132,722 shares held by directors, supervisors and senior executives are temporarily frozen) were listed on February 5, 2001.

2. Company's registered place and headquarters address Registration placeNo.85, Baiyun Road, Yuexiu District, Guangzhou. Headquarters Office：45-46/F, Litong Plaza, No.32, Zhujiang East Road, Zhujiang New City, Tianhe Disrtict , Guangzhou

3. Business nature and main business activities Industry and main products of the company: highway management and maintenance. General business items: investment, construction, charging, maintenance and service management of expressways, grade roads and bridges; Automobile rescue service, maintenance and cleaning; Parking lot charges; Design, production, release and agency of all kinds of advertisements at home and abroad; Land development along the highway; Warehousing business; Intelligent transportation technology research and development and service; Equity investment, management and consultation. (Projects that must be approved according to law can be operated only after being approved by relevant departments). The Company is mainly engaged in tolling and maintenance of Guangfo Expressway, Fokai Expressway,Jingzhu

10.In accordance with the resolutions of 2000 annual shareholders’ general meeting, the Company capitalized capital common reserve into 419,039,249 shares on 5-for-10 basis with the total share capital as of the end of 2000, i.e., 838,078,499 shares as base. The date of stock right registration was May 21, 2001. The ex-right date was May 22, 2001.

On March 8, 2004,As approved by China Securities Regulatory Commission by document Zheng-Jian-Gong-Si-Zi [2003]No.3, the 45,000,000 non-negotiable foreign shares were placed in Shenzhen Stock

On December 21, 2005, the Company's plan for share holding structure reform was voted through at the shareholders' meeting concerning A shares. On January 26 2006, The Ministry of Commerce of PRC issued “The approval on share converting of Guangdong Provincial Expressway Development Co., Ltd.” to approve the share equity relocation and transformation. On October 9 2006, according to the “Circular about implementing of share equity relocation and relative trading” issued by Shenzhen Stock Exchange, the abbreviation ID of the Company’s A shares was restored from “G-Expressway” “Expressway A”.

.Upon the approval document of CSRC No.230-2016 Zheng Jian Xu ke-Approval of the Share-Issuing to Parties such as Guangdong Provincial Expressway Co., Ltd to Purchase Assets and Raise Matching Funds by Guangdong Provincial Expressway Development Co., Ltd, in June 2016 the company issued 33,355,263 shares and paid RMB 803.50 million to Guangdong Provincial Expressway Co., Ltd for purchasing the 25% stake of Guangdong Provincial Fokai Expressway Co., Ltd held by Guangdong Provincial Expressway Co., Ltd; and issued 466,325,020 shares to Guangdong Provincial Highway Construction Co., Ltd for purchasing the 100% stake of Guangzhou Guangzhu Traffic Investment Management Co., Ltd held by Guangdong Provincial Highway Construction Co., Ltd. On June 21, 2016, the company directionally issued 334,008,095 A-shares to Yadong FuxingYalian InvestmentCo.,Ltd, Tibet Yinyue Investment Management Co.,Ltd and Guangfa Securities Co.,Ltd. The issuance of shares have been registered on July 7, 2016, the new shares will be listed on July 8, 2016.

2. Company's registered place and headquarters address

Registration placeNo.85, Baiyun Road, Yuexiu District, Guangzhou.

Headquarters Office：45-46/F, Litong Plaza, No.32, Zhujiang East Road, Zhujiang New City, Tianhe Disrtict , Guangzhou

3. Business nature and main business activities

Industry and main products of the company: highway management and maintenance.

General business items: investment, construction, charging, maintenance and service management of expressways, grade roads and bridges; Automobile rescue service, maintenance and cleaning; Parking lot charges; Design, production, release and agency of all kinds of advertisements at home and abroad; Land development along the highway; Warehousing business; Intelligent transportation technology research and development and service; Equity investment, management and consultation. (Projects that must be approved according to law can be operated only after being approved by relevant departments)

The Company is mainly engaged in tolling and maintenance of Guangfo Expressway, Fokai Expressway,Jingzhu

Expressway Guangzhu Section and Guanghui Expressway investment in technological industries and provision of relevant consultation while investing in Shenzhen Huiyan Expressway Co., Ltd., Guangdong Jiangzhong Expressway Co.Ltd., Zhaoqing Yuezhao Expressway Co., Ltd.,Ganzhou Kangda Expressway , Ganzhou Gankang Expressway Co., Ltd., Guangdong Yuepu Small Refinancing Co., Ltd., Guoyuan Securities Co., Ltd, Garage electric pile Holding (Shenzhen) Co., Ltd ., SPIC Yuetong Qiyuan Chip Power Technology Co., Ltd.and Guangdong Guangle Expressway Co., Ltd.

4. Scope and changes of consolidated financial statements in the current period

(1) Scope of current consolidated financial statements

The consolidated scope of the current financial statements involves Yuegao Capital Holding (Guangzhou) Co., Ltd., its holding subsidiaries Guangfo Expressway Co., Ltd.,Jingzhu Expressway Guangzhu Section Co., Ltd. and Guanghui Expressway Co., Ltd.

(2) Changes in the scope of consolidated financial statements in the current period

None.

5. Approval and submission date of financial report

The financial statements have been authorized for issuance of the Board of Directors of the Company on August 24 ,2026.

IV. Basis for the preparation of financial statements

1.Preparation basis

The financial statements shall be prepared in accordance with the Accounting Standards for Business Enterprises and relevant provisions promulgated by the Ministry of Finance, as well as the relevant provisions of the Compilation Rules for Information Disclosure of Companies publicly Issuing Securities No.15 Financial Report (2023 Revision) of the China Securities Regulatory Commission.

2.Continuation

The Company has evaluated the going concern ability for 12 months from June 30,2026, and has found no matters or circumstances causing significant doubt about the going concern ability. Therefore, this financial statement is prepared on the basis of the going concern assumptions.

V. Significant Accounting Policies and Accounting Estimates

Tips for specific accounting policy and estimate:

None

1. Statement of Compliance with the Accounting Standards for Business Enterprises

The financial statements of the Company are recognized and measured in accordance with the regulations in the Chinese Accounting Standards for Business Enterprises and they give a true and fair view of the financial position, business result and cash flow of the Company on June 30, 2026.

2. Accounting period

The accounting period of the Company is the calendar year from January 1 to December 31.

3.Operating cycle

The normal operating cycle refers to the period from the time when the Group purchases assets for processing to the time when cash or cash equivalents are realized. The Company takes 12 months as a business cycle and uses it as a criterion for liquidity classification of assets and liabilities.

4.Standard currency for bookkeeping

RMB is the currency of the primary economic environment in which the Company and its domestic subsidiaries operate. Accordingly, the Company and its domestic subsidiaries use RMB as their functional currency. These financial statements are presented in RMB.

5, Importance criteria determination method and selection basis

Applicable □Not applicable

6. Accounting Treatment for Business Combinations under Common Control and Non-common Control

Business combinations under common control: The assets and liabilities acquired by the acquirer in a business combination (including goodwill arising from the ultimate controlling party's acquisition of the acquiree) are measured based on the carrying amounts of the acquiree's assets and liabilities in the ultimate controlling party's consolidated financial statements as of the merger date. For the difference between the carrying amounts of the net assets obtained in the merger and the carrying amounts of the merger consideration paid (or the total face value of the issued shares), adjust the share capital premium in the capital reserve. If the share capital premium in the capital reserve is insufficient to offset, adjust the retained earnings.

Business combinations under non-common control: The consideration transferred in a business combination is measured at the fair value of the assets given, liabilities incurred or assumed, and equity instruments issued by the acquirer at the acquisition date in exchange for control of the acquiree. If the consideration transferred exceeds the acquirer's interest in the fair value of the acquiree's identifiable net assets, the excess is recognized as goodwill; if the consideration transferred is less, the difference is recognized as profit or loss for the period. The identifiable assets, liabilities, and contingent liabilities of the acquiree that meet the recognition criteria are measured at their fair values at the acquisition date.

Directly attributable costs incurred for a business combination are recognized in profit or loss when incurred; transaction costs related to the issuance of equity or debt securities for the business combination are included in the initial measurement amount of the respective equity or debt securities.

7. Criteria for Control and Preparation Method of Consolidated Financial Statements

(1) Criteria for control

Control means that the Company has the power over the investee, enjoys variable returns by participating in the related activities of the investee, and has the ability to influence the amount of returns by using the power over the investee. Once the changes in relevant facts and circumstances lead to changes in the relevant factors involved in the definition of control, the Company will re-evaluate.

(2) Method for preparing consolidated financial statements

The scope of consolidation of the consolidated financial statements is determined based on control.

The Company includes subsidiaries in the consolidated financial statements from the date it obtains control and excludes them from the date control ceases.

For subsidiaries disposed of, their operating results and cash flows prior to the disposal date are included in the consolidated income statement and consolidated cash flow statement; The opening balances of the consolidated balance sheet are not adjusted for subsidiaries disposed of during the period.

For subsidiaries acquired through business combinations not under common control, their operating results and cash flows have been appropriately included in the consolidated income statement and consolidated cash flow statement from the acquisition date onward. Subsidiaries or businesses acquired during the reporting period through business combinations not under common control are consolidated from the acquisition date based on the fair values of identifiable assets, liabilities, and contingent liabilities determined at that date.

For subsidiaries acquired through business combinations under common control, regardless of when the combination occurs during the reporting period, they are treated as if they had been part of the Company's consolidated financial statements since the date they came under the ultimate controlling party's control, and their operating results and cash flows are included in the consolidated income statement and consolidated cash flow statement from the beginning of the earliest reporting period presented.

Subsidiaries adopt the principal accounting policies and reporting periods in accordance with the uniform accounting policies and reporting periods prescribed by the Company.

All significant intercompany balances, transactions, and unrealized profits are eliminated in the preparation of the consolidated financial statements.

The portion of a subsidiary's equity not attributable to the parent company is recognized as "noncontrolling interests" within the equity section of the consolidated balance sheet. The portion of a subsidiary's net profit or loss attributable to non-controlling interests is presented as "non-controlling interests in profit or loss" under net profit in the consolidated income statement.

If the share of a subsidiary's losses attributable to non-controlling interests exceeds their interest in the subsidiary's opening equity balance, the excess shall continue to be allocated against non-controlling interests.

For transactions involving the acquisition of non-controlling interests in a subsidiary or partial disposal of equity investments without loss of control over the subsidiary, such transactions shall be accounted for as equity transactions. The carrying amounts of equity attributable to the parent company's owners and non-controlling interests shall be adjusted to reflect changes in their respective interests in the subsidiary. Any difference between the adjustment to non-controlling interests and the fair value of consideration paid/received is adjusted to capital reserve. If capital reserve is insufficient, retained earnings are adjusted.

If control over a subsidiary is lost due to partial disposal of equity interests or other reasons, the remaining equity interest is remeasured at fair value at the date control is lost. The difference between (a) the sum of the consideration received from the disposal and the fair value of any remaining equity interest, and (b) the share of the net assets of the former subsidiary attributable to the previous ownership percentage (calculated on a continuous basis from the acquisition date), shall be recognized as investment income in the period in which control is lost, with a corresponding reduction in goodwill. Other comprehensive income related to the former subsidiary is reclassified to current profits or losses when control is lost.

8. Criteria for Determining Cash and Cash Equivalents

Cash refers to the Company's cash on hand and demand deposits. Cash equivalents refer to short-term (generally with a maturity of three months or less from the acquisition date), highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

9. Foreign Currency Transactions and Foreign Currency Financial Statement Translation

Foreign currency transactions are initially recorded in the functional currency at the spot exchange rate on the transaction date. However, for foreign exchange transactions or transactions involving currency exchange, the actual exchange rate applied is used for translation into the functional currency.

At the balance sheet date, foreign currency monetary items are translated using the spot exchange rate on that date. Exchange differences arising from the difference between the spot exchange rate on the balance sheet date and the spot exchange rate at the initial recognition date or the previous balance sheet date are recognized in profit or loss, except for: ① exchange differences arising from specific borrowings that qualify for capitalization, which are capitalized as part of the cost of the related asset during the capitalization period; ② exchange differences on hedging instruments used to hedge foreign currency risks, which are accounted for under hedge accounting; and ③ exchange differences arising from changes in the carrying amount (other than amortized cost) of monetary items classified as at fair value through other comprehensive income, which are recognized in other comprehensive income.

Non-monetary items measured at historical cost in a foreign currency continue to be measured at the functional currency amount translated using the spot exchange rate on the transaction date. Non-monetary items measured at fair value in a foreign currency are translated using the spot exchange rate on the date the fair value is determined. The difference between the translated functional currency amount and the original functional currency amount is treated as a fair value change (including the effect of exchange rate changes) and recognized in profit or loss or other comprehensive income.

10. Financial Instruments

A financial asset, financial liability, or equity instrument is recognized when the Company becomes a party to the contractual provisions of the financial instrument.

(1) Classification of financial instruments

According to the business model of financial assets under management and the contractual cash flow characteristics of financial assets, the Company divides financial assets into three categories at the initial recognition: financial assets measured by amortized cost, financial assets measured by fair value with its changes included in other comprehensive income, and financial assets measured by fair value with its changes included in profit or loss.

The Company classifies financial assets that meet both of the following criteria and are not designated at fair value through profit or loss as financial assets measured at amortized cost:

\- The business model's objective is to hold the assets to collect contractual cash flows;

\- The contractual cash flows represent solely payments of principal and interest on the principal amount outstanding.

The Company classifies financial assets that meet both of the following criteria and are not designated at fair value through profit or loss as financial assets measured at fair value through other comprehensive income (debt instruments):

\- The business model's objective is achieved both by collecting contractual cash flows and selling the financial assets;

\- The contractual cash flows represent solely payments of principal and interest on the principal amount outstanding.

For the investment in non-transactional equity instruments, the Company can irrevocably designate it as a financial asset measured at fair value with changes included in other comprehensive income at the initial recognition (equity instrument). The designation is made on the basis of a single investment, and the relevant investment conforms to the definition of equity instrument from the issuer's point of view.

Except for the above financial assets measured in amortized cost and those at fair value with changes included in other comprehensive income, the Company classifies all other financial assets as financial assets measured at fair value with changes included in profit or loss.

At initial recognition, financial liabilities are classified as either: (i) financial liabilities at fair value through profit or loss, or (ii) financial liabilities measured at amortized cost.

(2) Recognition criteria and measurement methods for financial instruments

1) Financial assets measured in amortized cost

Financial assets measured at amortized cost include notes receivable, accounts receivable, other receivables, long-term receivables, debt investments, etc. These assets are initially measured at fair value, with related transaction costs included in the initial recognition amount. However, accounts receivable without significant financing components and those for which the Company elects not to consider financing components of one year or less are initially measured at the contractual transaction price.

During the holding period, interest calculated using the effective interest method is recognized in profit or loss.

Upon derecognition or disposal, the difference between the consideration received and the carrying amount of the financial asset is recognized in profit or loss.

2) Financial assets measured at fair value with changes included in other comprehensive income (debt instruments)

Financial assets measured at fair value through other comprehensive income (debt instruments) include accounts receivable financing, other debt investments, etc. These assets are initially measured at fair value, with related transaction costs included in the initial recognition amount. These financial assets are subsequently measured at fair value. Changes in fair value, except for interest calculated using the effective interest method, impairment gains or losses, and exchange differences, are recognized in other comprehensive income.

Upon derecognition, the cumulative gains or losses previously recognized in other comprehensive income are reclassified from other comprehensive income to profit or loss.

3) Financial assets measured at fair value with changes included in other comprehensive income (equity instrument)

Financial assets measured at fair value through other comprehensive income (equity instruments) include investments in other equity instruments, etc. These assets are initially measured at fair value, with related transaction costs included in the initial recognition amount. Such financial assets are subsequently measured at fair value, with changes in fair value included in comprehensive income. Dividends received are recognized in profit or loss.

Upon derecognition, the cumulative gains or losses previously recognized in other comprehensive income are reclassified from other comprehensive income to retained earnings.

4) Financial assets measured at fair value with changes included in the profit or loss

Financial assets measured at fair value through profit or loss include trading financial assets, derivative financial assets, other non-current financial assets, etc. These assets are initially measured at fair value, with related transaction costs recognized in profit or loss. Such financial assets are subsequently measured at fair value, with changes in fair value included in profit or loss.

5) Financial liabilities measured at fair value with changes included in the profit or loss

Financial liabilities measured at fair value through profit or loss include trading financial liabilities, derivative financial liabilities, etc. These liabilities are initially measured at fair value, with related transaction costs recognized in profit or loss. Such financial liabilities are subsequently measured at fair value, with changes in fair value included in profit or loss.

Upon derecognition, the difference between the carrying amount and the consideration paid is recognized in profit or loss.

6) Financial liabilities measured in amortized cost

Financial liabilities measured at amortized cost include short-term borrowings, notes payable, accounts payable, other payables, long-term borrowings, bonds payable, and long-term payables. These liabilities are initially measured at fair value, with related transaction costs included in the initial recognition amount.

During the holding period, interest calculated using the effective interest method is recognized in profit or loss.

Upon derecognition, the difference between the consideration paid and the carrying amount of the financial liability is recognized in profit or loss.

(3) Derecognition criteria and accounting treatment for financial asset transfers

The Company derecognizes a financial asset when either of the following conditions is met:

\- The contractual rights to receive the cash flows from the financial asset expire;

\- The financial asset has been transferred, and substantially all the risks and rewards of ownership of the financial asset have been transferred to the transferee;

\- The financial asset has been transferred, and although the Company has neither transferred nor retained substantially all the risks and rewards of ownership of the financial asset, it has not retained control over the financial asset.

When the Company modifies or renegotiates the terms of a contract with the counterparty and such modification constitutes a substantial modification, the original financial asset is derecognized and a new financial asset is recognized based on the modified terms.

When a financial asset is transferred, if substantially all the risks and rewards of ownership of the financial asset are retained, the financial asset is not derecognized.

In assessing whether the transfer of a financial asset meets the above derecognition criteria, the principle of substance over form is applied.

The Company divides the transfer of financial assets into the overall transfer and partial transfer of financial assets. When the transfer of a financial asset in its entirety meets the derecognition criteria, the difference between the following amounts shall be recognized in profit or loss:

1) The carrying amount of the transferred financial asset;

2) The sum of the consideration received from the transfer and the cumulative amount of fair value changes previously recognized directly in equity (where the transferred financial asset is a debt instrument measured at fair value through other comprehensive income).

When a partial transfer of a financial asset meets the derecognition criteria, the carrying amount of the entire financial asset shall be allocated between the derecognized portion and the retained portion based on their relative fair values, and the difference between the following amounts shall be recognized in profit or loss:

1) The carrying amount of the derecognized portion;

2) The sum of the consideration received for the derecognized portion plus the proportionate share of cumulative fair value changes previously recognized directly in equity (where applicable to debt instruments measured at fair value through other comprehensive income).

If the transfer of financial assets does not meet the conditions for derecognition, such financial assets shall be continuously recognized, and the received consideration shall be recognized as a financial liability.

(4) Derecognition of financial liabilities

A financial liability (or part thereof) shall be derecognized when the present obligation is discharged in whole or in part; If the Company enters into an agreement with creditors to replace an existing financial liability with a new financial liability, and the terms of the new liability are substantially different from those of the existing liability, the existing financial liability shall be derecognized and the new financial liability shall be recognized simultaneously.

If there is a substantial modification to the contractual terms of an existing financial liability (in whole or in part), the original financial liability (or the modified portion) shall be derecognized, and the modified financial liability shall be recognized as a new financial liability.

If all or part of the financial liabilities are derecognized, the difference between the carrying amounts of the derecognized financial liabilities and the consideration paid (including the transferred non-cash assets or the new financial liabilities undertaken) will be included in the profit or loss.

When the Company repurchases a portion of a financial liability, the carrying amount of the entire liability shall be allocated between the portion to be continued and the portion to be derecognized based on their relative fair values as of the repurchase date. The difference between the allocated carrying amount of the derecognized portion and the consideration paid (including transferred non-cash assets or newly assumed financial liabilities) shall be recognized in profit or loss.

(5) Fair value measurement methods for financial assets and liabilities

The fair value of financial instruments with an active market shall be determined by the quotation in the active market. The fair value of financial instruments without active market shall be determined by valuation technology. At the time of valuation, the Company adopts the valuation technology that is applicable in the current situation and supported by sufficient available data and other information, selects the input values that are consistent with the characteristics of assets or liabilities considered by market participants in the transaction of relevant assets or liabilities, and gives priority to the relevant observable input values. Unobservable input values can only be used if the relevant observable input values are unavailable or impracticable.

(6) Impairment testing and accounting treatment for financial instruments

The Company applies impairment accounting based on expected credit losses to financial assets measured at amortized cost, debt instruments measured at fair value through other comprehensive income, and financial guarantee contracts.

The Company measures expected credit losses by incorporating reasonable and supportable information about past events, current conditions, and forecasts of future economic conditions, calculating a probabilityweighted amount of the present value of the difference between the contractual cash flows and the expected cash flows, using the risk of default as the weighting factor.

For receivables and contract assets arising from transactions governed by Accounting Standards for Business Enterprises No. 14 - Revenue, the Company consistently measures loss allowances at an amount equal to lifetime expected credit losses, regardless of whether they contain significant financing components.

For lease receivables arising from transactions governed by Accounting Standards for Business Enterprises No. 21 - Leases, the Company has elected to consistently measure loss allowances at an amount equal to lifetime expected credit losses.

For other financial instruments, the Company assesses changes in credit risk since initial recognition at each balance sheet date.

The Company evaluates whether credit risk has increased significantly since initial recognition by comparing the risk of default at the balance sheet date with the risk of default at initial recognition to determine the relative change in default risk over the financial instrument's expected maturity period, thus assessing whether the credit risk of the financial instrument has increased significantly since initial recognition. The Company presumes that the credit risk of a financial instrument has increased significantly when it is more than 30 days past due, unless there is compelling evidence demonstrating that no significant increase in credit risk has occurred since initial recognition.

If a financial instrument has low credit risk at the balance sheet date, the Company considers that no significant increase in its credit risk has occurred since initial recognition.

For financial instruments whose credit risk has increased significantly since initial recognition, the Company measures loss allowances at an amount equal to lifetime expected credit losses; for those without significant increase in credit risk, loss allowances are measured at an amount equal to 12-month expected credit losses. The resulting increases or decreases in loss allowances are recognized in profit or loss as impairment losses or gains. For debt instruments measured at fair value through other comprehensive income, the loss allowance is recognized in other comprehensive income while impairment losses or gains are recognized in profit or loss, without reducing the carrying amount of the financial asset presented in the balance sheet.

When objective evidence indicates that a specific receivable has experienced credit impairment, the Company measures its impairment provision on an individual basis.

For receivables other than those subject to individual bad debt provision as mentioned above, the Company categorizes the remaining financial instruments into several portfolios based on their credit risk characteristics, and determines expected credit losses on a portfolio basis. The Company's portfolio groupings and determination basis for measuring expected credit losses on notes receivable, accounts receivable, financing receivables, other receivables, contract assets, and long-term receivables are as follows:

1) Basis for determining credit risk characteristic portfolios

2) When performing credit risk assessment using the portfolio approach, the Company measures expected credit losses and recognizes loss allowances for financial assets based on the portfolio structure and similar credit risk characteristics (debtors' repayment capacity under contractual terms), incorporating historical default loss experience, current economic conditions, and forward-looking information, using the expected maturity period as the measurement basis.

Methods for measuring loss allowances by different portfolios:

3) Expected credit loss rates by portfolio:

Portfolio 1 (aging portfolio): Expected credit loss rate

Portfolio 2 (deposit-type portfolio): Based on historical default loss experience, current economic conditions, and forward-looking information, the expected credit loss rate is 0%;

Portfolio 3 (financial asset portfolio with very low credit risk): Based on historical default loss experience, current economic conditions, and forward-looking information, the expected credit loss rate is 0%;

Portfolio 4 (risk-free portfolio): Based on historical default loss experience, current economic conditions, and forward-looking information, the expected credit loss rate is 0%.

If the Company no longer reasonably expects to recover all or part of the contractual cash flows of a financial asset, the carrying amount of the financial asset is directly written off.

11. Contract Assets and Contract Liabilities

(1) Contract assets

The Company recognizes contract assets in the balance sheet for rights to consideration that are conditional on factors other than the passage of time (i.e., not unconditional), where the Company has performed its obligations under the contract but the customer has not yet paid the contractual consideration. Contract assets and liabilities under the same contract are presented on a net basis; those under different contracts are not offset.

The measurement methods and accounting treatment for expected credit losses on contract assets follow "(6) Impairment testing and accounting treatment for financial instruments in Section 10".

(2) Contract liabilities

The Company presents either a contract asset or liability in the balance sheet based on the relationship between performance obligations and customer payments. Obligations to transfer goods or services to customers for which the Company has received or is entitled to receive consideration are classified as contract liabilities. Contract assets and liabilities under the same contract are presented on a net basis.

12. Long-term Equity Investments

(1) Criteria for determining joint control and significant influence

Joint control is the contractually agreed sharing of control over an arrangement, where decisions about relevant activities of such arrangement require unanimous consent of all parties sharing control. Investees over which the Company exercises joint control with other parties and has rights to their net assets are classified as joint ventures of the Company.

Significant influence is the power to participate in financial and operating policy decisions of an investee without control or joint control over those policies. Investees over which the Company has significant influence are classified as associates of the Company.

(2) Determination of initial investment cost

For long-term equity investments in subsidiaries acquired through business combinations under common control, the initial investment cost is measured at the carrying amount of the acquiree's equity interests in the consolidated financial statements of the ultimate controlling party on the merger date. The difference between the initial investment cost of the long-term equity investment and the carrying amount of consideration paid shall be adjusted against the share premium within capital reserves. If the share premium is insufficient to absorb the difference, the remaining amount shall be adjusted against retained earnings.

For long-term equity investments in subsidiaries acquired through business combinations not under common control, the initial investment cost is measured at the fair value of consideration transferred on the acquisition date.

(2) Long-term equity investments obtained other than through business combinations

For investments acquired by cash payment, the initial investment cost is the actual purchase price paid. For investments acquired by issuing equity instruments, the initial investment cost is the fair value of the equity instruments issued.

(3) Subsequent measurement and profit/loss recognition methods

1) Long-term equity investments measured at cost

The Company applies the cost method for long-term equity investments in subsidiaries, unless the investment meets the criteria to be classified as held for sale. The Company recognizes current-period investment income based on its share of cash dividends or profits declared by the investee, excluding any dividends or profits declared but not yet paid that were included in the actual payment or consideration for the investment.

2) Long-term equity investments accounted for under the equity method

For long-term equity investments in associates and joint ventures, the Company applies the equity method. Where the initial investment cost exceeds the investor's share of the fair value of the investee's identifiable net assets at the acquisition date, the excess is not adjusted against the initial investment cost; Where the initial investment cost is less than such share, the difference is recognized in profit or loss, with a corresponding adjustment to the carrying amount of the investment.

The Company recognizes its share of the investee's net profit or loss and other comprehensive income as investment income and other comprehensive income respectively, with corresponding adjustments to the carrying amount of the long-term equity investment; reduces the carrying amount by its share of profits or cash dividends declared by the investee; and for other changes in the investee's equity other than those resulting from net profit or loss, other comprehensive income, or profit distributions (hereinafter referred to as "other equity changes"), adjusts the carrying amount of the long-term equity investment and recognizes the changes directly in equity.

When determining the Company's share of the investee's net profit or loss, other comprehensive income, and other equity changes, such share shall be recognized based on the fair value of the investee's identifiable net assets at the acquisition date, after adjusting the investee's net profit and other comprehensive income in accordance with the Company's accounting policies and reporting periods.

Unrealized profits and losses arising from transactions between the Company and its associates or joint ventures are eliminated to the extent of the Company's ownership interest when recognizing investment income, except when the transferred assets constitute a business. Unrealized losses arising from transactions with the investee that qualify as asset impairment losses are recognized in full.

The Company recognizes its share of net losses of a joint venture or associate until the carrying amount of the long-term equity investment plus any long-term interests that are essentially advances to the investee are reduced to zero, unless the Company has incurred additional loss obligations. For subsequent net profits earned by the joint venture or associate, the Company resumes recognition of its share of profits only after the profit share offsets previously unrecognized loss shares.

3) Disposal of long-term equity investments

The difference between the carrying amount of a disposed long-term equity investment and the actual proceeds received is recognized in profit or loss.

For partial disposals of equity-method investments where the remaining interest continues to be accounted for under the equity method, the other comprehensive income previously recognized under the equity method is reclassified proportionately on the same basis as if the investee had directly disposed of the related assets or liabilities, while other equity changes are proportionately reclassified to profit or loss.

When joint control or significant influence over an investee is lost due to disposal of equity investments, the other comprehensive income previously recognized under the equity method is accounted for on the same basis as if the investee had directly disposed of the related assets or liabilities upon cessation of equity method accounting, while all other equity changes are fully reclassified to profit or loss at the time of discontinuation.

When control over an investee is lost due to partial disposal of equity investments, the Company, in preparing its separate financial statements, if the remaining interest retains joint control or significant influence, transitions to equity method accounting with retrospective adjustment as if the equity method had always been applied, proportionately reclassifying pre-control other comprehensive income on the same basis as if the investee had directly disposed of the related assets/liabilities and proportionately reclassifying equity-methodrelated other equity changes to profit or loss; if no joint control or significant influence is retained, reclassifies the remaining interest as a financial asset with the difference between its fair value and carrying amount at the date of control loss recognized in profit or loss, while fully reclassifying all pre-control other comprehensive income and other equity changes.

For step-by-step disposals of equity investments in subsidiaries resulting in loss of control that qualify as a single integrated transaction, all individual transactions are accounted for as a single disposal event, with the difference between the consideration received and the carrying amount of the disposed equity interest for each pre-control-disposal transaction being initially recognized in other comprehensive income in the separate financial statements and subsequently reclassified in its entirety to profit or loss at the point when control is ultimately lost. For non-single arrangements, each transaction is accounted for separately.

13. Investment Properties

Measurement model of investment property

Cost model

Depreciation or amortization method

Investment properties refer to real estate properties held for earning rental income, capital appreciation, or both, including leased land use rights, land use rights held for capital appreciation with intent to transfer, and leased buildings.

Investment properties are initially measured at cost. Subsequent expenditures related to investment properties are included in the cost of investment real estate if the economic benefits related to the asset are likely to flow in and the cost can be measured reliably. Other subsequent expenditures are recognized in profit or loss when incurred.

14. Fixed Assets

(1) Recognition criteria

Fixed assets refer to tangible assets held for producing goods, providing services, leasing or management, with a service life of more than one fiscal year. Fixed assets are recognized only when the economic benefits related to them are likely to flow into the Company and their costs can be measured reliably. Fixed assets are initially measured at cost, taking into account the impact of estimated disposal costs. Subsequent expenditures related to fixed assets are capitalized when it is probable that associated economic benefits will flow to the entity and the costs can be reliably measured; The carrying amount of any replaced parts is derecognized; All other subsequent expenditures are recognized as profit or loss when incurred.

(2) Depreciation methods

Depreciation is calculated from the month following the date when the assets become available for their intended use, applying either the straight-line method or units-of-production method over their useful lives. Depreciation rates are determined based on the category of assets, estimated useful lives, and estimated residual value rates. For fixed assets with recognized impairment losses, depreciation in subsequent periods is calculated based on the carrying amount after deducting impairment provisions and the remaining useful life. If components of the fix assets have different useful lives or provide economic benefits to the enterprise in different ways, different depreciation rates or methods are applied separately.

Useful lives, estimated residual values and annual depreciation rates by category of fixed assets:

15. Construction in Progress

The cost of construction in progress is determined based on actual project expenditures, including all construction-related expenses incurred during the construction period, borrowing costs capitalized before the project reaches its intended usable condition, and other relevant costs. No depreciation is allowed for construction in progress.

Construction in progress is carried forward to fixed assets after it reaches the intended usable state. The standards and timing for transferring various construction in progress to fixed assets are as follows:

16. Borrowing Costs

Borrowing costs comprise interest expenses on borrowings, amortization of discounts or premiums, ancillary costs, and foreign exchange differences arising from foreign currency borrowings. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset shall be capitalized when expenditures for the asset have been incurred, borrowing costs have been incurred, and activities necessary to prepare the asset for its intended use or sale have begun, and capitalization shall cease when the qualifying asset being acquired, constructed or produced has reached its intended usable or salable condition. All other borrowing costs shall be recognized as an expense in the period in which they are incurred.

For specific borrowings, the amount of borrowing costs eligible for capitalization shall be the actual borrowing costs incurred during the period less any investment income from the temporary investment of those borrowings. For general borrowings, the amount of borrowing costs eligible for capitalization shall be determined by applying the capitalization rate to the weighted average of the expenditures on that asset that exceed the specific borrowings. The capitalization rate shall be determined based on the weighted average interest rate of the general borrowings.

17. Intangible Assets

(1) Useful life and its determination basis, estimation, amortization method or review procedure

Intangible assets are initially measured at cost, including purchase price, related taxes and duties, and other directly attributable expenditures necessary to bring the asset to its intended use. The Company assesses the useful life of intangible assets upon acquisition. For intangible assets with finite useful lives, amortization is recognized over their expected economic benefit periods; Intangible assets for which the expected useful life cannot be reliably estimated are considered to have indefinite useful lives and are not amortized.

The amortization methods, useful lives and residual values of intangible assets are as follows:

At each period-end, the useful lives and amortization methods of finite-lived intangible assets are reviewed, with any changes accounted for as changes in accounting estimates.

18. Long-term Asset Impairment

For long-term equity investments, investment properties measured at cost, property, plant and equipment, construction in progress, right-of-use assets, and finite-lived intangible assets, the Company assesses at each balance sheet date whether there are any impairment indicators. If any impairment indicators exist, the recoverable amount shall be estimated and impairment testing shall be performed.

If the impairment test indicates that the recoverable amount of an asset is lower than its carrying amount, the difference shall be recognized as an impairment provision and recorded as an impairment loss. The recoverable amount shall be the higher of an asset's fair value less costs of disposal and the present value of the estimated future cash flows expected to be derived from the asset. Impairment provisions for assets shall be calculated and recognized on an individual asset basis, except when it is impracticable to reliably estimate the recoverable amount of an individual asset, in which case the recoverable amount shall be determined for the cash-generating unit to which the asset belongs. Asset group is the smallest asset portfolio that can generate cash inflow independently.

An impairment loss recognized for these assets shall not be reversed in subsequent periods, even if the recoverable amount subsequently increases.

19. Long-term Prepaid Expenses

Long-term prepaid expenses refer to costs that have already been incurred but should be allocated over the current reporting period and subsequent periods with an amortization period exceeding one year. Such expenses are amortized using the straight-line method over their expected benefit periods.

20. Employee Benefits

(1) Accounting treatment for short-term employee benefits

The Company recognizes actual short-term employee benefits as liabilities during the accounting periods in which employees render services, with corresponding charges to profit or loss or relevant asset costs.

The Company's contributions to social insurance and housing provident funds for employees, as well as labor union funds and worker education funds accrued in accordance with applicable regulations, shall be determined based on the prescribed contribution bases and rates during the accounting periods in which employees render services to the Company.

Employee welfare expenses are recognized at actual amounts incurred and charged to profit or loss or relevant asset costs, with non-monetary benefits measured at fair value.

(2) Accounting treatment for post-employment benefits

The Company contributes to basic pension insurance and unemployment insurance for employees in accordance with local government regulations. The required contributions, calculated based on locally prescribed bases and rates during employee service periods, are recognized as liabilities and charged to profit or loss or relevant asset costs.

(3) Accounting treatment for termination benefits

When providing termination benefits, the Company recognizes corresponding liabilities at the earlier of: (a) when the Company can no longer unilaterally withdraw the termination offer under the redundancy plan or severance proposal; or (b) when the Company recognizes restructuring-related costs or expenses involving termination payments, with a corresponding charge to profit or loss.

21.Estimated liabilities

A provision shall be recognized when all of the following conditions are met in relation to a contingent obligation: (1) the obligation is a present obligation of the Company; (2) it is probable that an outflow of economic benefits will be required to settle the obligation; and (3) the amount of the obligation can be measured reliably.

At the balance sheet date, provisions shall be measured at the best estimate of the expenditure required to settle the present obligation, taking into account risks and uncertainties associated with the contingent event as well as the time value of money where material. When the time value of money is material, the best estimate shall be determined by discounting the estimated future cash outflows.

If the expenditure required to settle a provision is expected to be partially or wholly reimbursed by a third party, the reimbursement amount shall be recognized as a separate asset when it is virtually certain to be received, and the amount recognized shall not exceed the carrying value of the provision.

The Company reviews the carrying amount of provisions at each balance sheet date and adjusts them to reflect the current best estimate when there is objective evidence that the carrying amount no longer represents the appropriate measurement.

22. Revenue

Revenue recognition and measurement accounting policies are disclosed by business type.

(1) Accounting policies for revenue recognition and measurement

The Company recognizes revenue when it satisfies a performance obligation under the contract by transferring control of goods or services to the customer. Control of goods or services is obtained when the customer has the ability to direct the use of, and obtain substantially all the remaining benefits from, those goods or services.

For contracts containing two or more performance obligations, the Company allocates the transaction price to each distinct performance obligation at contract inception based on the relative stand-alone selling prices of the promised goods or services. Revenue is measured based on the transaction price allocated to each distinct performance obligation.

Transaction price is the amount of consideration that the Company is expected to receive for transferring the goods to customers, excluding the payment collected on behalf of third parties and the payment that the Company is expected to return to customers. The Company determines the transaction price based on the contract terms and its historical business practices, while considering the effects of variable consideration, significant financing components in the contract, non-cash consideration, and consideration payable to customers. The Company estimates the transaction price including variable consideration at an amount that does not exceed the level for which it is highly probable that the cumulative recognized revenue will not be subject to significant reversal when the related uncertainty is resolved. For contracts with significant financing components, the Company determines the transaction price as the cash selling price at the date control transfers, with any difference between this amount and the contract consideration amortized using the effective interest method over the contract period. At contract inception, the Company does not consider the existence of a significant financing component when the period between the transfer of control of goods or services to the customer and the customer's payment is expected to be one year or less.

A performance obligation is satisfied over time if one or more of the following criteria are met; otherwise, it is satisfied at a point in time:

• The customer simultaneously receives and consumes the benefits provided by the Company's performance as the Company performs;

• The customer controls the goods or services in process as they are constructed or provided by the Company;

The goods or services created by the Company's performance have no alternative use to the Company, and the Company has an enforceable right to payment for performance completed to date throughout the contract period.

For the performance obligations performed in a certain period of time, the Company shall recognize the income according to the performance progress during that period, except that the performance progress cannot be reasonably determined. The Company determines the progress of performance using either an output method or input method, based on the nature of the goods or services. When the progress cannot be reasonably measured, revenue is recognized to the extent of costs incurred that are expected to be recoverable, until such time as the progress can be reliably determined.

For performance obligations satisfied at a point in time, the Company recognizes revenue when the customer obtains control of the related goods or services. In assessing whether control of goods or services has transferred, the Company considers the following indicators:

• The Company has a present right to payment for the goods or services (i.e., the customer has a present obligation to pay for such goods or services).

• The Company has transferred legal title of the goods to the customer (i.e., the customer has legal ownership of such goods).

• The Company has physically transferred the goods to the customer (i.e., the customer has physical possession of such goods).

• The Company has transferred the principal risks and rewards of ownership of the goods to the customer (i.e., the customer has obtained the principal risks and rewards of such goods ownership).

• The customer has accepted the goods or services, etc.

• Other indicators demonstrating that the customer has obtained the control of goods.

The Company determines whether it is acting as a principal or an agent in transactions by assessing whether it obtains control of the goods or services before transferring them to the customer. When the Company obtains control of goods or services before transferring them to the customer, it acts as a principal and recognizes revenue at the gross amount of consideration received or receivable; otherwise, it acts as an agent and recognizes revenue at the net amount of commission or fee to which it expects to be entitled.

(2) Revenue recognition methods and measurement approaches by business type

1) Toll revenue

Toll revenue refers to the toll revenue from operating toll roads, which is recognized according to the amount collected and receivable when vehicles pass.

2) Advertising and other revenue

Advertising and other revenues are recognized as operating income over the service period based on elapsed service time and contractual pricing.

Different revenue recognition methods and measurement approaches apply to similar business activities under different operating models.

23. Contract Costs

Contract costs comprise costs to obtain a contract and costs to fulfill a contract.

Incremental costs of obtaining a contract (i.e., costs that would not have been incurred if the contract had not been acquired) that are expected to be recovered are recognized as an asset and amortized on the same basis as the revenue recognition pattern of the related goods or services, with the amortization charged to profit or loss. Other costs incurred by the Company to obtain a contract shall be recognized as profit or loss when incurred, unless they are specifically recoverable from the customer.

Costs incurred to fulfill a contract that do not fall within the scope of other standards (such as inventories, property, plant and equipment, or intangible assets) are recognized as an asset when all of the following conditions are met: (1) The costs relate directly to a specific contract (including direct labor, direct materials, manufacturing overheads or similar costs, explicitly chargeable client costs, and other costs incurred only for that contract); (2) The costs enhance the Company's resources that will be used to satisfy performance obligations in the future; (3) The costs are expected to be recovered. Such assets are amortized on the same basis as the revenue recognition pattern of the goods related to such assets, with the amortization charged to profit or loss.

When determining impairment losses on assets related to contract costs, the Company shall first assess and recognize impairment losses on other contract-related assets that are accounted for under applicable accounting standards; subsequently, for assets arising from contract costs, when the carrying amount exceeds the difference between: (1) the remaining consideration expected to be received for transferring the related goods or services; and (2) the estimated costs required to complete such transfer, the excess amount shall be recognized as an impairment provision and recorded as an impairment loss.

An impairment provision recognized for an asset relating to contract costs shall be reversed if the reasons for the impairment have ceased to apply, such that the above difference exceeds the carrying amount. The reversal shall be recognized in profit or loss, provided that the increased carrying amount does not exceed the carrying amount that would have been determined (net of amortization or depreciation) had no impairment provision been recognized

24. Government Grants

(1) Classification

Government grants are monetary or non-monetary assets received by the Company from government authorities without compensation, classified into government grants related to assets and government grants related to income.

Government grants related to assets refer to government grants acquired by the Company for the purchase, construction or other forms of acquisition of long-term assets. Government grants related to income refer to government grants other than those related to assets.

Government documents clearly specify that government grants for purchase, construction or other forms of acquisition of long-term assets are recognized as government grants related to assets. If the object of grants is not clearly specified in government documents, and long-term assets can be formed, the part of government grants corresponding to the value of assets shall be regarded as the government grants related to assets, and the rest shall be regarded as the government grants related to income; If it is difficult to distinguish them, the government grants as a whole will be regarded as a government grants related to income. Government grants related to assets are recognized as deferred income. The amount recognized as deferred income is systematically amortized to profit or loss over the useful lives of the related assets using a rational and systematic method.

Government grants other than those related to assets are recognized as government grants related to income.

Government grants related to income that compensate the enterprise for relevant expenses or losses to be incurred in future periods are recognized as deferred income and subsequently amortized to profit or loss when the related expenses are recognized, whereas grants compensating already incurred expenses or losses are directly recognized in profit or loss.

When the Company receives subsidized preferential loan interest through fiscal authorities disbursing funds to lending banks which then provide loans at preferential policy rates, the loan is measured at the actual amount received with borrowing costs calculated based on the principal amount and preferential interest rate; when fiscal authorities directly disburse the interest subsidy to the Company, the corresponding subsidy amount reduces the related borrowing costs.

(2) Recognition timing

Government grants are recognized when the Company can comply with the attached conditions and can reasonably assure their receipt.

(3) Accounting treatment

Government grants related to assets are recognized as deferred income and systematically amortized to profit or loss over the useful lives of the related assets using a rational and systematic method. Government grants related to the Company's ordinary activities are recognized as other income, while those unrelated to ordinary activities are recognized as non-operating income.

25. Deferred Tax Assets / Deferred Tax Liabilities

The Company applies the balance sheet liability method for income tax accounting.

For the difference between the carrying amounts of some assets and liabilities and their tax basis, and the temporary difference between the carrying amounts of items that are not recognized as assets and liabilities but can be determined in tax basis according to the provisions of the tax law and tax basis, the balance sheet liability method is adopted to recognize deferred tax assets and deferred tax liabilities.

Deferred tax assets are recognized for deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary differences can be utilized. For deductible losses and tax deductions that can be carried forward to future years, the corresponding deferred tax assets are recognized to the extent that it is likely to obtain future taxable income for deducting deductible losses and tax deductions.

Deferred tax liabilities are recognized for all taxable temporary differences, except in certain specified circumstances.

Deferred tax assets or liabilities shall not be recognized for the following special circumstances:

 • The initial recognition of goodwill;

 Transactions or events that (a) are not business combinations, (b) at the time of occurrence affect neither accounting profit nor taxable income (or deductible losses), and (c) upon initial recognition of the related assets or liabilities do not create offsetting taxable and deductible temporary differences of equal amounts.

A deferred tax liability shall be recognized for taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, except when the Company can control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. A deferred tax asset shall be recognized for deductible temporary differences associated with investments in subsidiaries, associates and joint ventures only when it is probable that the temporary difference will reverse in the foreseeable future and sufficient taxable profit will be available against which the deductible temporary difference can be utilized.

On the balance sheet date, deferred tax assets and liabilities shall be measured using the tax rates that are expected to apply to the periods when the assets are recovered or liabilities are settled, based on tax laws enacted or substantively enacted by that date.

On the balance sheet date, the carrying amount of deferred tax assets is reviewed and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to realize the associated benefit. Such reductions are reversed when it subsequently becomes probable that sufficient taxable profit will be available.

26. Lease

A lease is a contract that conveys the right to use an asset for a period of time from the lessor to the lessee in exchange for consideration. On the commencement date of the contract, the Company evaluates whether the contract is a lease or contains a lease. If a contract conveys the right to control the use of one or more identified assets for a period of time in exchange for consideration, the contract is or contains a lease.

When a contract contains multiple separate lease components, the Company separates and accounts for each lease component individually. For contracts containing both lease and non-lease components, lessees and lessors separate the lease components from non-lease components.

(1) Accounting treatment as a lessee

1) right-of-use assets

At the commencement date of the lease term, the Company recognizes right-of-use assets for all leases except short-term leases and leases of low-value assets. The right-of-use assets are initially measured at cost. Such cost comprises:

 The initial measurement amount of the lease liability;

 Lease payments made at or before the commencement date of the lease term, less any lease incentives received;

 Initial direct costs incurred by the Company;

 The estimated costs to dismantle, remove, restore the underlying asset or reinstate the site or such underlying asset to its contractual condition, excluding costs attributable to inventory production.

Subsequently, the Company depreciates right-of-use assets using the straight-line method. When the Company is reasonably certain to obtain ownership of the underlying asset by the end of the lease term, depreciation is calculated over the remaining useful life of the underlying asset; otherwise, depreciation is calculated over the shorter of the lease term and the underlying asset's remaining useful life.

The Company assesses right-of-use assets for impairment following the principles described in "XIX. Long-lived Asset Impairment" in this section and accounts for any identified impairment losses accordingly.

2) Lease liabilities

At the commencement date of the lease term, the Company recognizes lease liabilities for all leases except short-term leases and leases of low-value assets. The lease liability is initially measured at the present value of the unpaid lease payments. Lease payments include:

 Fixed payments (including in-substance fixed payments), less any lease incentives;

 Variable lease payments that depend on an index or rate;

 Amounts expected to be payable under residual value guarantees provided by the Company;

 The exercise price of purchase options if the Company is reasonably certain to exercise the option;

 Termination penalties if the lease term reflects the Company's expectation of exercising a termination option.

The Company uses the interest rate implicit in lease as the discount rate, or if such rate cannot be reasonably determined, the Company's incremental borrowing rate shall be adopted as the discount rate.

The Company calculates interest expense on the lease liability for each period during the lease term using a fixed periodic interest rate, which is charged to profit or loss or capitalized into the cost of related assets.

Variable lease payments not included in the lease liability measurement are recognized in profit or loss or capitalized into the cost of related assets when incurred.

After the commencement date of the lease term, the Company remeasures the lease liability and adjusts the corresponding right-of-use asset in the following circumstances. If the carrying amount of the right-of-use asset has been reduced to zero but further reduction of the lease liability is required, the excess is recognized in profit or loss:

 When there is a change in the assessment of purchase, renewal or termination options, or when actual exercise of these options differs from the original assessment, the Company remeasures the lease liability using the revised lease payments and updated discount rate;

 When there are changes to in-substance fixed payments, expected payments under residual value guarantees, or indices/rates used to determine lease payments, the Company remeasures the lease liability using the revised lease payments and original discount rate; However, if the change in lease payments results from fluctuations in a variable interest rate, the present value shall be recalculated using the revised discount rate.

3) Short-term leases and leases of low-value assets

For short-term leases and leases of low-value assets where the Company elects not to recognize right-ofuse assets and lease liabilities, the related lease payments are recognized in profit or loss or capitalized into the cost of related assets on a straight-line basis over the lease term. A short-term lease is a lease that, at the commencement date of the lease term, has a lease term of 12 months or less and does not contain a purchase option. An a lease of low-value assets refers to a lease of an individual asset that has low value when new. The Company classifies leases of individual underlying assets with a new value not exceeding RMB 40,000 as leases of low-value assets. If the Company subleases or expects to sublease the underlying assets, the original lease does not qualify as a lease of low-value assets.

4) Lease modifications

 The modification increases the scope of the lease by adding one or more underlying assets;

 The additional consideration is commensurate with the standalone price for the increased lease scope, adjusted to reflect the specific circumstances of the contract.

If the modification is not accounted for as a separate lease, on the effective date of the modification, the Company will re-allocate the consideration of the modified contract, re-determine the lease term, and remeasure the lease liabilities according to the present value calculated by the changed lease payment and the revised discount rate.

If a modification reduces the lease scope or term, the Company proportionately reduces the carrying amount of the right-of-use asset and recognizes any gain/loss from partial/full termination in profit or loss. For other modifications requiring lease liability remeasurement, the Company adjusts the carrying amount of the right-of-use asset correspondingly.

(2) Accounting treatment as a lessor

At the commencement date of the lease, the Company classifies leases as either finance leases or operating leases. A finance lease is a lease that transfers substantially all the risks and rewards incidental to ownership of the underlying asset, regardless of whether legal title is eventually transferred. An operating lease is any lease that does not qualify as a finance lease. When acting as an intermediate lessor, the Company classifies subleases based on the right-of-use asset arising from the head lease.

1) Accounting treatment of operating lease

Lease income from operating leases is recognized on a straight-line basis over the lease term. Initial direct costs incurred related to operating leases are capitalized and allocated to profit or loss over the lease term using the same basis as lease income recognition. Variable lease payments not included in lease income are recognized in profit or loss when incurred. Modifications to operating leases are accounted for as new leases by the Company from the effective modification date, with any prepaid/accrued lease income attributable to the original lease treated as part of the new lease payments.

2) Accounting treatment of finance lease

At the commencement date of the lease, the Company recognizes finance lease receivables and derecognizes the underlying assets for finance leases. The Company initially measures finance lease receivables at an amount equal to the net investment in the lease. The net investment in the lease is the sum of the present value of the unguaranteed residual value and the lease payments receivable at the commencement date of the lease term, both discounted using the interest rate implicit in lease.

27. Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

When measuring fair value, the Company assumes that the orderly transaction occurs in the principal market for the asset or liability; in the absence of a principal market, the most advantageous market is assumed. The principal market (or most advantageous market) is the market accessible to the Company at the measurement date. The Company uses assumptions that market participants would use when pricing the asset or liability to maximize economic benefits.

The fair value measurement of a non-financial asset takes into account either the ability of market participants to generate economic benefits through the asset's highest and best use or their ability to sell it to other market participants who would utilize it in its highest and best use to generate economic benefits.

The Company applies valuation techniques that are appropriate in current circumstances and sufficiently supported by available data and other information, prioritizing the use of relevant observable inputs and resorting to unobservable inputs only when observable inputs are unavailable or their collection is impracticable.

Assets and liabilities measured or disclosed at fair value in the financial statements are categorized into three fair value hierarchy levels based on the lowest level input that is significant to the entire measurement: Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities accessible at the measurement date; Level 2 inputs are observable inputs other than Level 1 prices, whether directly or indirectly observable for the asset or liability; Level 3 inputs are unobservable inputs for the asset or liability.

On each balance sheet date, the Company reassesses assets and liabilities measured at fair value on a recurring basis in the financial statements to determine whether transfers between fair value hierarchy levels have occurred.

28.Change of main accounting policies and estimations

(1)Change of main accounting policies

□Applicable √Not applicable

（2）Significant estimates changes□Applicable √Not applicable

（3）The information of the adjusting items related to the financial statements at the beginning of the year of first implementation due to the first implementation of new accounting standards from 2026.Adjustment description □Applicable √Not applicable

VI. Taxation

1. Major category of taxes and tax rates

2.Preferential tax treatment

None

VII. Notes on major items in consolidated financial statements of the Company

1. Monetary funds

In RMB

Other note Accrued interest not yet due represents interest on 7-day notice deposits.

2. Account receivable

（1）Disclosure by aging

In RMB

（2）According to the bad debt provision method classification disclosure

In RMB

Categories of individual bad debt provisions:

In RMB

Categories of portfolio-based bad debt provision: Aging portfolio In RMB

Categories of portfolio-based bad debt provision: Other portfolio

In RMB

Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of other receivables if the provision for bad debts of bills receivable is accrued according to the general model of expected credit loss:

□ Applicable √ Not applicable

(3) Accounts receivable withdraw, reversed or collected during the reporting period

The withdrawal amount of the bad debt provision：

In RMB

（4）The actual write-off accounts receivable

None

(5) Top 5 of the closing balance of the accounts receivable collected according to the arrears party

In RMB

3.Other accounts receivable

In RMB

（1）Interest receivable

None

（2）Dividend receivable

1) Dividend receivable

In RMB

2）Significant dividend receivable aged over 1 year None

（3） Other accounts receivable

1) Other accounts receivable classified

In RMB

In RMB

2）Disclosure by aging

3) Disclosure by bad debt provision method

Applicable □Not applicable

In RMB

Categories of portfolio-based bad debt provision: Aging portfolio

In RMB

Accrual of bad debt provision by portfolio: CSF Portfolio

In RMB

Accrual of bad debt provision by portfolio: Very low credit risk financial asset portfolio In RMB

Provision for bad debts is made according to the general model of expected credit losses

In RMB

Basis for division of each stage and accrual ratio for bad-debt provision Loss provision changes in current period, change in book balance with significant amount □ Applicable √Not applicable

4) Accounts receivable withdraw, reversed or collected during the reporting period

The withdrawal amount of the bad debt provision：

In RMB

5) Actual write-off of other receivables in the current period

None

6) Top five other receivables by debtor at the end of the period

In RMB

4.Prepayments

（1）Aging analysis

In RMB

Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time: None

(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target

5.Other current assets

In RMB

6.Other Equity instrument investment

In RMB

Other note：

Note 1: Huaxia Securities Co., Ltd. has been severely insolvent. In April 2008, the CSRC sent a letter agreeing to Huaxia Securities Co., Ltd. to apply for bankruptcy. In August 2008, the Beijing No.2 Intermediate People's Court officially accepted the bankruptcy liquidation application.

Note 2: Huazheng Asset Management Co., Ltd. has been severely insolvent.

Breakdown disclosure of investment in non-tradable equity instruments in the current period

In RMB

The Semi-Annual Report 2026

7. Long-term equity investment

In RMB

The recoverable amount is determined on the basis of the net amount of fair value less disposal costs □Applicable Not applicable

□Applicable Not applicable

8.Other non-current financial assets

In RMB

9. Investment property

(1) Investment property adopted the cost measurement mode

√ Applicable □Not applicable

In RMB

The recoverable amount is determined by the net amount of fair value minus disposal expenses □Applicable Not applicable

The recoverable amount is determined according to the present value of the expected future cash flow □Applicable Not applicable

（2）Investment real estate without property rights certificate

In RMB

10. Fixed assets

In RMB

(1) List of fixed assets

In RMB

(2)Fixed assets temporary idle

In RMB

(3) Fixed assets leasing-out by operational lease

In RMB

(4) Fixed assets without property rights certificate

In RMB

(5) Information of impairment test of fixed assets

□Applicable Not applicable

（6） liquidation of fixed assets

In RMB