OVERSEAS REGULATORY ANNOUNCEMENT THIRD QUARTERLY REPORT FOR 2021 - Form 6-K

OVERSEAS REGULATORY ANNOUNCEMENT

THIRD QUARTERLY REPORT FOR 2021

In accordance with the requirements of the Shanghai Stock Exchange ("SSE"), Guangshen Railway Company Limited (the "Company") is required to issue a third quarterly report.

The financial information set out in this quarterly report has not been audited, and has been prepared in accordance with the PRC Enterprise Accounting Standards.

This announcement is made in accordance with Rule 13.09(2)(a) and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

I.	IMPORTANT NOTICE:

(1)

The board of directors, supervisory committee, directors, supervisors and senior management of the Company warrant that the contents of this quarterly report are authentic, accurate and complete, and there are no misrepresentations or misleading statements contained in or material omissions from this quarterly report, and severally and jointly accept the related legal responsibility.

(2)	Mr. Wu Yong, Chairman of the Company, Mr. Hu Lingling, General Manager, Mr. Luo Xinpeng, Chief Accountant and Mr. Liu Qiyi, Chief of Finance Department hereby declare that the authenticity, accuracy and completeness of the financial statements contained in this quarterly report are warranted.

(3)	Whether the third quarterly financial statements were audited

☐ Yes ☒ No

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II.	Principal financial information

(1)	Principal Accounting Information and Financial Indicators

Unit: ¥ Currency: RMB

Items		This reporting period			Increase/ decrease as compared with the corresponding period of last year (%)			From the beginning of the year to the end of the reporting period			Increase/ decrease from the beginning of the year to the end of the reporting period compared with the corresponding period of last year (%)
Revenues from operation			5,279,474,277				29.03				14,947,451,817				29.43
Net profit attributable to shareholders of listed company			(260,456,104	)			N/A				(255,283,646	)			N/A
Net profit attributable to shareholders of listed company after extraordinary gain or loss			(263,998,947	)			N/A				(255,659,310	)			N/A
Net cash flow from operating activities			N/A				N/A				301,893,875				(71.60	)
Basic earnings per share (¥/share)			(0.037	)			N/A				(0.036	)			N/A
Diluted earnings per share (¥/share)			(0.037	)			N/A				(0.036	)			N/A
Weighted average return on net assets (%)			(0.93	)			N/A				(0.91	)			N/A

		At the end of this reporting period			At the end of last year			Increase/ decrease at the end of the reporting period compared with the end of last year (%)
Total assets			37,467,765,557				36,780,451,862				1.87
Owners' equity attributable to shareholders of the listed company			28,016,100,897				28,192,839,252				(0.63	)

Note: (1)

"This reporting period" refers to the three-month period from the beginning of this quarter to the end of this quarter, the same as below;

(2)	Return on net assets represents the difference between the amounts of "Increase/decrease as compared with the same period of last year (%)".

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(2)	Extraordinary gain or loss items and amounts

Unit: ¥ Currency: RMB

Items		Amount for this reporting period			Amount from the beginning of the year to the end of the reporting period
Gain or loss on disposal of non- current assets (including the write-off portion of the provision for impairment of assets）			(1,148,281	)			(15,632,513	)
Government grants included in profit or loss for the period, other than government grants closely related to the normal operation of the Company and granted on an on-going basis in accordance with specific standard amount or quantity in compliance with national policies			2,650,248				9,945,967
Other non-operating income and expenses other than aforesaid items			2,743,628				6,246,125
Less: Effect of income tax			670,314				118,932
Effect of minority interests (after tax)			32,438				64,983
Total			3,542,843				375,664

Note: Extraordinary losses are expressed in negative figures.

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(3)	Changes of key accounting items and financial indicators and reasons for changes

☒ Applicable ☐ Not applicable

Items		Movement (%)			Major Reason
Net profit attributable to shareholders of listed company _ This reporting period (July to September)			N/A			Operating revenue increased from July to September and the increase was greater than the increase in operating costs.
Net profit attributable to shareholders of listed company after extraordinary gain or loss _ This reporting period (July to September)			N/A			Same as above.
Basic earnings per share _ This reporting period (July to September)			N/A			Same as above.
Diluted earnings per share _ This reporting period (July to September)			N/A			Same as above.
Weighted average return on net assets _ This reporting period (July to September)			N/A			Same as above.
Net profit attributable to shareholders of listed company _ From the beginning of the year to the end of the reporting period (January to September)			N/A			Operating revenue increased from January to September and the increase was greater than the increase in operating costs.
Net profit attributable to shareholders of listed company after extraordinary gain or loss _ From the beginning of the year to the end of the reporting period (January to September)			N/A			Same as above.
Basic earnings per share _ From the beginning of the year to the end of the reporting period (January to September)			N/A			Same as above.
Diluted earnings per share _ From the beginning of the year to the end of the reporting period (January to September)			N/A			Same as above.
Weighted average return on net assets _ From the beginning of the year to the end of the reporting period (January to September)			N/A			Same as above.
Net cash flow from operating activities _ From the beginning of the year to the end of the reporting period (January to September)			(71.60	)		Resulted from increase in operating cash outflow.

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III.	INFORMATION OF SHAREHOLDERS

(1)	Total number of ordinary shareholders and number of preference shareholders with restored voting rights and shareholdings of the top ten shareholders

Unit: Share

Total number of ordinary shareholders at the end of the reporting period		193,859		Total number of preference shareholders with restored voting rights at the end of the reporting period (if any)		N/A
Shareholdings of the top ten shareholders

Name of shareholder		Nature of shareholder		Number of shares held			Shareholding percentage (%)			Number of shares with selling restriction held			Share pledged, marked or frozen
	Status of shares			Number
China Railway Guangzhou Group Co., Ltd.		State-owned legal person			2,629,451,300				37.12				-				Nil				-
HKSCC NOMINEES LIMITED (note)		Foreign legal person			1,478,777,859				20.88				-				Nil				-
Lin Naigang		Domestic natural person			124,000,000				1.75				-				Nil				-
Hong Zejun		Domestic natural person			105,000,000				1.48				-				Nil				-
Li Wei		Domestic natural person			35,946,201				0.51				-				Nil				-
Taiyuan Iron and Steel (Group) Co., Ltd.		State-owned legal person			30,771,989				0.43				-				Nil				-
Harvest Fund - Agricultural Bank of China - Harvest CSI Financial Asset Management Plan		Other			28,101,600				0.40				-				Nil				-
Yinhua Fund - Agricultural Bank of China - Yinhua CSI Financial Assets Management Scheme		Other			26,814,300				0.38				-				Nil				-
Central European Fund - Agricultural Bank of China - Central European CSI Financial Asset Management Plan		Other			26,436,800				0.37				-				Nil				-
Southern Asset Management - Agricultural Bank of China - Southern CSI Financial Assets Management Scheme		Other			24,907,300				0.35				-				Nil				-

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Top ten holders of shares without selling restrictions

Name of shareholder		Number of shares held without selling restrictions			Class and number of shares
	Class		Number
China Railway Guangzhou Group Co., Ltd.			2,629,451,300			RMB ordinary shares			2,629,451,300
HKSCC NOMINEES LIMITED (Note)			1,478,777,859			RMB ordinary shares			61,859,560
					Overseas listed foreign shares		1,416,918,299
Lin Naigang			124,000,000			RMB ordinary shares			124,000,000
Hong Zejun			105,000,000			RMB ordinary shares			105,000,000
Li Wei			35,946,201			RMB ordinary shares			35,946,201
Taiyuan Iron and Steel (Group) Co., Ltd.			30,771,989			RMB ordinary shares			30,771,989
Harvest Fund - Agricultural Bank of China - Harvest CSI Financial Asset Management Plan			28,101,600			RMB ordinary shares			28,101,600
Yinhua Fund - Agricultural Bank of China-Yinhua CSI Financial Assets Management Scheme			26,814,300			RMB ordinary shares			26,814,300
Central European Fund - Agricultural Bank of China - Central European CSI Financial Asset Management Plan			26,436,800			RMB ordinary shares			26,436,800
Southern Asset Management - Agricultural Bank of China - Southern CSI Financial Assets Management Scheme			24,907,300			RMB ordinary shares			24,907,300
Statement regarding the connected relationship or acting in concert arrangements of the above shareholders			The Company is not aware of any of the above shareholders being connected or acting in concert as defined in the "Administrative Measures on Acquisitions of Listed Companies" (《上市公司收購管 理辦法》).
Description of the top ten shareholders and top ten shareholders holding shares without selling restrictions participate in margin financing and securities lending and refinancing business (if any)			Li Wei holds a total of 35,946,201 shares of the Company, including 3,938,201 shares held through ordinary securities accounts and 32,008,000 shares held through credit securities accounts.

Note:

61,859,560 A shares and 1,416,918,299 H shares of the Company were held by HKSCC NOMINEES LIMITED in the capacity of various clients.

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IV.	Other Reminders

☐ Applicable ☒ Not applicable

V.	Quarterly Financial Statements

(1)	Type of Audit Opinion

☐ Applicable ☒ Not applicable

(2)	Financial Statements

Combined Balance Sheet

30 September, 2021

Prepared by: Guangshen Railway Company Limited Unit: ¥ Currency: RMB Audit type: Unaudited

Items		30 September 2021			31 December 2020
Current Asset:
Bank balances and cash			1,530,410,316				1,545,232,043
Trade receivables			4,818,838,268				3,721,676,955
Prepayments			8,298,037				5,124,452
Other receivables			363,084,654				595,861,776
Inventories			299,285,647				296,405,900
Other current assets			51,724,355				94,535,587
Total current assets			7,071,641,277				6,258,836,713

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Combined Balance Sheet (Continued)

30 September, 2021

Prepared by: Guangshen Railway Company Limited Unit: ¥ Currency: RMB Audit type: Unaudited

Items		30 September 2021			31 December 2020
Non-current assets:
Debt Investments			160,000,000				160,000,000
Long-term receivables			19,430,221				23,733,581
Long-term equity investments			221,440,642				196,848,985
Investment in other equity instruments			377,631,199				377,631,199
Fixed assets			23,061,347,188				23,016,083,082
Constructions-in-progress			2,532,726,055				2,778,675,953
Right-of-use assets			1,341,301,976				1,352,498,274
Intangible assets			1,793,683,001				1,831,303,551
Goodwill			281,254,606				281,254,606
Long-term prepaid expenses			66,867,483				43,888,542
Deferred income tax assets			507,891,423				422,953,733
Other non-current assets			32,550,486				36,743,643
Total non-current assets			30,396,124,280				30,521,615,149
Total assets			37,467,765,557				36,780,451,862
Current liabilities:
Trade payables			5,271,849,726				4,988,615,141
Contract liabilities			91,856,401				215,305,381
Staff remuneration payable			467,491,717				442,701,969
Tax payable			57,252,229				63,638,806
Other payables			1,318,161,659				1,357,761,713
Other non-current liabilities			4,654,040				14,833,718
Non-current liabilities due within one year			62,727,500				61,880,000
Total current liabilities			7,273,993,272				7,144,736,728

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Combined Balance Sheet (Continued)

30 September, 2021

Prepared by: Guangshen Railway Company Limited Unit: ¥ Currency: RMB Audit type: Unaudited

Items		30 September 2021			31 December 2020
Non-current liabilities:
Lease liabilities			1,319,973,120				1,315,693,163
Deferred income			838,161,209				104,938,887
Deferred income tax liabilities			57,043,016				58,912,559
Total non-current liabilities			2,215,177,345				1,479,544,609
Total liabilities			9,489,170,617				8,624,281,337
Owners' equity (or shareholders' equity):
Paid-in capital (or share capital)			7,083,537,000				7,083,537,000
Capital reserves			11,562,657,448				11,562,657,448
Other comprehensive income			181,940,940				181,940,940
Appropriative reserves			79,382,523				-
Surplus reserves			3,084,484,724				3,084,484,726
Retained earnings			6,024,098,262				6,280,219,138
Total equity attributable to owners of the parent (or shareholders' equity)			28,016,100,897				28,192,839,252
Minority interests			(37,505,957	)			(36,668,727	)
Total owners' equity (or shareholders' equity)			27,978,594,940				28,156,170,525
Total liabilities and owners' equity (or shareholders' equity)			37,467,765,557				36,780,451,862

Chairman: Wu Yong General Manager: Hu Lingling

Chief Accountant: Luo Xinpeng Chief of Finance Department: Liu Qiyi

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Combined Statement of Profit

January to September 2021

Prepared by: Guangshen Railway Company Limited Unit: ¥ Currency: RMB Audit type: Unaudited

Items		First three quarters of 2021 (January to September)			First three quarters of 2020 (January to September)
I. Total revenues from operation			14,947,451,817				11,548,681,016
Include: Revenues from operation			14,947,451,817				11,548,681,016
II. Total operating costs			15,318,144,339				12,985,021,964
Include: Operating costs			15,085,154,253				12,727,034,730
Business tax and surcharges			37,816,207				20,532,021
Management expenses			165,186,966				215,249,930
Finance costs			29,986,913				22,205,283
Include:Interest expense			50,643,028				43,225,843
Interest income			22,025,689				22,330,939
Loss from credit impairment (loss denoted by "-")			3,924,763				(10,554,166	)
Add: Other gains			9,945,967				14,004,435
Gains from investments (loss denoted by "-")			34,393,484				24,680,727
Include: Gains from investments in associates and joint ventures			24,591,656				16,945,457
III. Profit from operation (loss denoted by "-")			(322,428,308	)			(1,408,209,952	)
Add: Non-operating income			9,054,470				6,359,748
Less: Non-operating expenses			18,869,057				34,732,323
IV. Gross profit (gross loss denoted by "-")			(332,242,895	)			(1,436,582,527	)
Less: Income tax expenses			(76,122,019	)			(320,702,731	)

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Combined Statement of Profit (Continued)

January to September 2021

Prepared by: Guangshen Railway Company Limited Unit: ¥ Currency: RMB Audit type: Unaudited

Items		First three quarters of 2021 (January to September)			First three quarters of 2020 (January to September)
V. Net profit (net loss denoted by "-")			(256,120,876	)			(1,115,879,796	)
(I) Classification by continuous operations
1. Net profit from continuous operations (net loss denoted by "-")			(256,120,876	)			(1,115,879,796	)
2. Net profit from discontinued operations (net loss denoted by "-")			-				-
(II) Classification by ownership
1. Net profit attributable to shareholders of the parent (net loss denoted by "-")			(255,283,646	)			(1,116,783,823	)
2. Profit or loss of minority shareholders (net loss denoted by "-")			(837,230	)			904,027
VI. Net other comprehensive income after tax			-				-
VII. Total comprehensive income			(256,120,876	)			(1,115,879,796	)
(I) Total comprehensive income attributable to owners of the parent			(255,283,646	)			(1,116,783,823	)
(II) Total comprehensive income attributable to minority shareholders			(837,230	)			904,027
VIII. Earnings per share:
(I) Basic earnings per share (¥/share)			(0.036	)			(0.158	)
(II) Diluted earnings per share (¥/share)			(0.036	)			(0.158	)

Chairman: Wu Yong General Manager: Hu Lingling

Chief Accountant: Luo Xinpeng Chief of Finance Department: Liu Qiyi

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Combined Cash Flow Statement

January to September 2021

Prepared by: Guangshen Railway Company Limited Unit: ¥ Currency: RMB Audit type: Unaudited

Items		First three quarters of 2021 (January to September)			First three quarters of 2020 (January to September)
I. Cash flows from operating activities:
Cash received from sales of goods or rendering of services			11,854,204,007				8,893,639,316
Cash received relating to other operating activities			113,794,407				198,938,081
Sub-total of cash inflows from operating activities			11,967,998,414				9,092,577,397
Cash paid for goods purchased and services accepted			5,260,908,117				2,591,999,085
Cash paid to and on behalf of employees			5,859,496,580				4,909,426,045
Tax paid			338,828,531				438,955,284
Cash paid relating to other operating activities			206,871,311				89,136,261
Sub-total of cash outflows from operating activities			11,666,104,539				8,029,516,675
Net cash flows from operating activities			301,893,875				1,063,060,722
II. Cash flows from investing activities:
Net cash received from disposal of fixed assets, intangible assets and other long-term assets			93,806,738				132,134,054
Cash received from gains from investments			9,801,829				7,735,270
Sub-total of cash inflows from investing activities			103,608,567				139,869,324
Cash paid to construct fixed assets, intangible assets and other long-term assets			420,324,169				702,121,464
Cash paid relating to investments			-				26,586,470
Cash paid relating to other investing activities			-				220,000,000
Sub-total of cash outflows from investing activities			420,324,169				948,707,934
Net cash flows from investing activities			(316,715,602	)			(808,838,610	)

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Company Cash Flow Statement (Continued)

January to September 2021

Prepared by: Guangshen Railway Company Limited Unit: ¥ Currency: RMB Audit type: Unaudited

Items		First three quarters of 2021 (January to September)			First three quarters of 2020 (January to September)
III. Cash flows from financing activities:
Cash for distribution of dividends, profits or repayment of interest payments			-				266,065,203
Cash paid relating to other financing activities			-				45,562,500
Sub-total of cash outflows from financing activities			-				311,627,703
Net cash flows from financing activities			-				(311,627,703	)
IV. Effect of foreign exchange rate changes on cash and cash equivalents			-				-
V. Net increase in cash and cash equivalents			(14,821,727	)			(57,405,591	)
Add: Balance of cash and cash equivalents at the beginning of the period			1,705,232,043				1,562,333,604
VI. Balance of cash and cash equivalents at the end of the period			1,690,410,316				1,504,928,013

Chairman: Wu Yong General Manager: Hu Lingling

Chief Accountant: Luo Xinpeng Chief of Finance Department: Liu Qiyi

(3)	Relevant Information on the adjustment to the implementation of the financial statements at the beginning of such year for the first time against initial application of the new lease standards since 2021

☐ Applicable ☒ Not applicable

Board of Directors

Guangshen Railway Company Limited

28 October 2021

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