OVERSEAS REGULATORY ANNOUNCEMENT

FIRST QUARTERLY REPORT FOR 2022

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

The Board and all its directors guarantee that this announcement does not contain any misrepresentations, misleading statement or material omission, and are legally responsible for the authenticity, accuracy and completeness of the contents of this announcement.

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 first quarterly financial statements were audited

☐ Yes ☑ No

- 1 -

II.

PRINCIPAL FINANCIAL INFORMATION

(1)

Principal Accounting Information and Financial Indicators

Unit: ¥ Currency: RMB

Items

This reporting

period

Same period last

year

Increase/decrease
from this reporting
period compared

with the same

period of last year

(%)

Revenues from operation

4,998,622,697 4,413,764,612 13.25

Net profit attributable to shareholders of listed company

(398,371,025 ) (93,372,207 ) N/A

Net profit attributable to shareholders of listed company after extraordinary gain or loss

(412,787,538 ) (93,683,062 ) N/A

Net cash flow from operating activities

(202,546,932 ) (250,538,278 ) N/A

Basic earnings per share (¥/share)

(0.056 ) (0.013 ) N/A

Diluted earnings per share (¥/share)

(0.056 ) (0.013 ) N/A

Weighted average return on net assets (%)

(1.47 ) (0.33 ) 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

36,728,169,181 37,403,422,526 (1.81 )

Owners' equity attributable to shareholders of the listed company

26,877,622,904 27,241,949,775 (1.34 )

- 2 -

(2)

Extraordinary gain or loss items and amounts

Unit: ¥ Currency: RMB

Items Amount for
the period

Gain or loss on disposal of non-current assets

(415,130 )

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

22,660,749

Other non-operating income and expenses other than aforesaid items

(1,470,645 )

Less: Effect of income tax

6,269,096

Effect of minority interests (after tax)

89,365

Total

14,416,513

Note: Extraordinary losses are expressed in negative figures.

(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 N/A The limited growth of revenues from operation during the reporting period was mainly due to the impact of COVID-19 epidemic, as well as the growth rate of revenues from operation was lower than the growth rate of operating cost.
Net profit attributable to shareholders of listed company after extraordinary gain or loss N/A Same as above.
Basic earnings per share N/A Same as above.
Diluted earnings per share N/A Same as above.

- 3 -

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 188,258

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
restrictions

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 1,493,112,192 21.08 - Nil -

Lin Naigang


Domestic natural

person


124,000,000 1.75 - Nil -

Hong Zejun


Domestic natural

person


100,000,000 1.41 - Nil -

Li Wei


Domestic natural

person


51,979,601 0.73 - Nil -

China Construction Bank Corporation - Huaan

State-owned Enterprise Reform Theme Flexible Allocation of Hybrid Securities Investment Fund

Other 43,294,418 0.61 - Nil -

Taiyuan Iron and Steel (Group) Co., Ltd.


State-owned legal

person


29,729,989 0.42 - Nil -

Harvest Fund - Agricultural Bank of China - Harvest CSI Financial Asset Management Plan

Other 27,163,700 0.38 - 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 -

- 4 -

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)

1,493,112,192 RMB ordinary shares 75,907,893

Overseas listed foreign
shares

1,417,204,299

Lin Naigang

124,000,000 RMB ordinary shares 124,000,000
Hong Zejun 100,000,000 RMB ordinary shares 100,000,000

Li Wei

51,979,601 RMB ordinary shares 51,979,601

China Construction Bank Corporation - Huaan State-owned Enterprise Reform Theme Flexible Allocation of Hybrid Securities Investment Fund

43,294,418 RMB ordinary shares 43,294,418

Taiyuan Iron and Steel (Group) Co., Ltd.

29,729,989 RMB ordinary shares 29,729,989

Harvest Fund - Agricultural Bank of China - Harvest CSI Financial Asset Management Plan

27,163,700 RMB ordinary shares 27,163,700

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

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 51,979,601 shares of the
Company, including 51,978,801 shares held through
ordinary securities accounts and 800 shares held through
credit securities accounts.


Note:

75,907,893 A shares and 1,417,204,299 H shares of the Company were held by HKSCC NOMINEES LIMITED in the capacity of various clients.

- 5 -

IV.

OTHER MATTERS THAT NEED TO BE BROUGHT TO THE ATTENTION OF INVESTORS IN RELATION TO THE COMPANY'S OPERATIONS DURING THE REPORTING PERIOD

☐ Applicable ☑ Not applicable

V.

QUARTERLY FINANCIAL STATEMENTS

(1)

Type of Audit Opinion

☐ Applicable ☑ Not applicable

(2)

Financial Statements

Combined Balance Sheet

31 March, 2022

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

Items 31 March 2022 31 December 2021

Current Asset:

Bank balances and cash

1,237,853,720 1,559,462,301

Trade receivables

4,433,316,947 4,396,173,803

Prepayments

5,266,721 3,949,426

Other receivables

367,606,013 416,525,717

Inventories

275,353,444 271,583,112

Other current assets

56,775,022 87,819,176

Total current assets

6,376,171,867 6,735,513,535

Non-current assets:

Debt Investments

160,000,000 160,000,000

Long-term receivables

20,556,953 20,226,271

Long-term equity investments

230,049,409 225,337,683

Investment in other equity instruments

463,695,717 463,695,717

Fixed assets

23,586,800,383 24,008,179,306

Constructions-in-progress

1,605,133,167 1,588,934,669

Right-of-use assets

1,333,178,771 1,337,240,373

Intangible assets

1,767,959,966 1,781,123,351

Goodwill

281,254,606 281,254,606

- 6 -

Combined Balance Sheet (Continued)

31 March, 2022

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

Items 31 March 2022 31 December 2021

Long-term prepaid expenses

57,723,953 64,140,242

Deferred income tax assets

802,991,366 698,396,364

Other non-current assets

42,653,023 39,380,409

Total non-current assets

30,351,997,314 30,667,908,991

Total assets

36,728,169,181 37,403,422,526

Current liabilities:

Trade payables

5,241,796,988 5,589,418,347

Bill payables

500,000,000 300,000,000

Receipts in advance

595,815 13,115

Contract liabilities

79,851,599 112,441,522

Staff remuneration payable

422,107,715 509,406,312

Tax payable

17,694,630 77,883,113

Other payables

1,415,509,469 1,384,216,163

Other current liabilities

1,544,110 3,540,916
Non-current liabilities due within one year 63,301,887 63,248,985

Total current liabilities

7,742,402,213 8,040,168,473
Non-current liabilities:

Lease liabilities

1,321,981,754 1,320,834,843

Deferred income

767,650,618 781,562,772

Deferred income tax liabilities

55,796,654 56,419,835

Total non-current liabilities

2,145,429,026 2,158,817,450

Total liabilities

9,887,831,239 10,198,985,923

- 7 -

Combined Balance Sheet (Continued)

31 March, 2022

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

Items 31 March 2022 31 December 2021

Owners' equity (or shareholders' equity):

Paid-in capital (or share capital)

7,083,537,000 7,083,537,000

Capital reserves

11,572,973,273 11,573,003,266

Other comprehensive income

181,940,940 181,940,940

Appropriative reserves

45,957,934 11,883,787

Surplus reserves

3,084,484,726 3,084,484,726

Retained earnings

4,908,729,031 5,307,100,056

Total equity attributable to owners of the parent (or shareholders' equity)

26,877,622,904 27,241,949,775

Minority interests

(37,284,962 ) (37,513,172 )

Total owners' equity (or shareholders' equity)

26,840,337,942 27,204,436,603

Total liabilities and owners' equity (or shareholders' equity)

36,728,169,181 37,403,422,526

Chairman: Wu Yong General Manager: Hu Lingling

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

- 8 -

Combined Statement of Profit

January to March 2022

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

Items

The first quarter of

2022

The first quarter of

2021

I.   Total revenues from operation

4,998,622,697 4,413,764,612

Include: Revenues from operation

4,998,622,697 4,413,764,612

II. Total operating costs

5,526,851,177 4,577,882,895

Include: Operating costs

5,461,895,916 4,498,687,910

Business tax and surcharges

1,590,559 11,096,089

Management expenses

55,199,239 57,805,062

Finance costs

8,165,463 10,293,834

Include: Interest expense

16,945,322 16,875,271

Interest income

9,304,848 6,805,008

Add: Other gains

22,660,749 4,128,123

Gains from investments (loss denoted by "-")

4,741,718 (565,696 )

Include: Gains from investments in associates and joint ventures

4,741,718 (565,696 )

Loss from credit impairment (loss denoted by "-")

- 42,504,173

III.  Profit from operation (loss denoted by "-")

(500,826,013 ) (118,051,683 )

Add: Non-operating income

3,005,075 3,555,622

Less: Non-operating expenses

4,663,953 2,992,973

IV.  Gross profit (gross loss denoted by "-")

(502,484,891 ) (117,489,034 )

Less: Income tax expenses

(104,342,076 ) (24,424,539 )

- 9 -

Combined Statement of Profit (Continued)

January to March 2022

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

Items

The first quarter of

2022

The first quarter of

2021

V.  Net profit (net loss denoted by "-")

(398,142,815 ) (93,064,495 )

(1)   Classification by continuous operations

1.   Net profit from continuous operations (net loss denoted by "-")

(398,142,815 ) (93,064,495 )

2.   Net profit from discontinued operations (net loss denoted by "-")

- -

(2)   Classification by ownership

1.   Net profit attributable to shareholders of the parent (net loss denoted by "-")

(398,371,025 ) (93,372,207 )

2.   Profit or loss of minority shareholders (net loss denoted by "-")

228,210 307,712

VI.  Net other comprehensive income after tax

- -

VII.   Total comprehensive income

(398,142,815 ) (93,064,495 )

(1)   Total comprehensive income attributable to owners of the parent

(398,371,025 ) (93,372,207 )

(2)   Total comprehensive income attributable to minority shareholders

228,210 307,712

VIII. Earnings per share:

(1)   Basic earnings per share (¥/share)

(0.056 ) (0.013 )

(2)   Diluted earnings per share (¥/share)

(0.056 ) (0.013 )

Chairman: Wu Yong General Manager: Hu Lingling

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

- 10 -

Combined Cash Flow Statement

January to March 2022

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

Items

The first quarter of

2022

The first quarter of

2021

I.   Cash flows from operating activities:

Cash received from sales of goods or rendering of services

2,916,362,577 3,176,340,726

Refunds of taxes received

77,107,449 -

Cash received relating to other operating activities

107,220,876 126,329,817

Sub-total of cash inflows from operating activities

3,100,690,902 3,302,670,543

Cash paid for goods purchased and services accepted

1,226,775,119 1,527,901,836

Cash paid to and on behalf of employees

1,821,891,627 1,769,375,631

Tax paid

75,816,994 103,567,319

Cash paid relating to other operating activities

178,754,094 152,364,035

Sub-total of cash outflows from operating activities

3,303,237,834 3,553,208,821

Net cash flows from operating activities

(202,546,932 ) (250,538,278 )

II.   Cash flows from investing activities:

Net cash received from disposal of fixed assets, intangible assets and other long-term assets

12,639,334 93,802,016

Cash received from gains from investments

12,639,334 93,802,016

Cash paid to construct fixed assets, intangible assets and other long-term assets

115,946,266 197,417,695

Sub-total of cash outflows from investing activities

115,946,266 197,417,695

Net cash flows from investing activities

(103,306,932 ) (103,615,679 )

- 11 -

Combined Cash Flow Statement (Continued)

January to March 2022

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

Items

The first quarter of

2022

The first quarter of

2021

III. Cash flows from financing activities:

Cash paid relating to other financing activities

15,754,717 -

Sub-total of cash outflows from financing activities

15,754,717 -

Net cash flows from financing activities

(15,754,717 ) -

IV.  Effect of foreign exchange rate changes on cash and cash equivalents

- -

V. Net increase in cash and cash equivalents

(321,608,581 ) (354,153,957 )

Add: Balance of cash and cash equivalents at the beginning of the period

1,719,462,301 1,545,232,043

VI.  Balance of cash and cash equivalents at the end of the period

1,397,853,720 1,191,078,086

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 accounting standards since 2022

☐ Applicable ☑ Not applicable

The announcement is hereby made.

Board of Directors

Guangshen Railway Company Limited

28 April 2022

- 12 -

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Guangshen Railway Co. Ltd. published this content on 29 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2022 13:05:19 UTC.