Guangshen Railway Company Limited (GNGYF) 6-K Third Quarterly Report for 2015

Exhibit 99.1

(a joint stock limited company incorporated in the People’s Republic of China)

(Stock Code: 00525)

OVERSEAS REGULATORY ANNOUNCEMENT

THIRD QUARTERLY REPORT FOR 2015

In accordance with the requirements of the China Securities Regulatory Commission (“CSRC”), 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) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

1. IMPORTANT NOTICE

1.1 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 liabilities.

1.2 All directors of the Company attended the meeting of the board of directors for the considering of this quarterly report.

1.3 Mr. Wu Yong, Chairman of the Company, Mr. Shen Yi, General Manager, Mr. Tang Xiangdong, Chief Accountant and Mr. Lin Wensheng, Head of Finance Department hereby declare that the authenticity, accuracy and completeness of the financial statements in this quarterly report are warranted.

1.4 The financial statements in the third quarterly report for 2015 of the Company have not been audited.

— 1 —

2. MAJOR FINANCIAL DATA AND CHANGE IN SHAREHOLDERS OF THE COMPANY

2.1 Major financial data

Unit: ¥ Currency: RMB

	At the end of this reporting period	At the end of last year	Increase/decrease compared with the end of last year (%)
Total assets	30,724,507,947	30,536,662,375	0.62
Net assets attributable to shareholders of listed company	27,274,480,315	26,745,840,611	1.98
	From the beginning of the year to the end of the reporting period (January to September)	From the beginning of last year to the end of the reporting period of last year (January to September)	Increase/decrease compared with the same period of last year (%)
Net cash flows from operating activities	1,816,571,851	1,822,787,064	(0.34)
	From the beginning of the year to the end of the reporting period (January to September)	From the beginning of last year to the end of the reporting period of last year (January to September)	Increase/decrease compared with the same period of last year (%)
Operating revenues	11,319,727,538	11,039,823,940	2.54
Net profit attributable to shareholders of listed company	882,816,554	649,778,044	35.86
Net profits attributable to shareholders of listed company after extraordinary gain or loss	901,794,312	741,753,429	21.58
Weighted average return on net assets (%)	3.27	2.43	0.84% increase
Basic earnings per share (¥/share)	0.125	0.092	35.87
Diluted earnings per share (¥/share)	0.125	0.092	35.87

Note: The “Increase/decrease compared with the same period of last year (%)” for return on net assets is the difference between the amounts in two periods.

— 2 —

Extraordinary gain or loss items and amounts

þ  Applicable    ¨   Not applicable

Unit: ¥ Currency: RMB

Item	Amount for the period (July to September)			Amount from the beginning of the year to the end of the reporting period (January to September)
Gain or loss on disposal of non-current assets		(4,288,192	)		(24,593,476	)
Government grants included in profit or loss for the period, other than those which are closely related to the Company’s ordinary business, in accordance with national policies and those continuously received in certain standard amounts and quantities		1,117,456			3,211,786
Reversal of impairment provision for receivables subject to individual impairment assessment test		7,493,868			7,879,563
Other non-operating income and expenses other than the items above		(12,192,403	)		(7,560,909	)
Effect of income tax		40,111			3,309,098
Effect of minority interests (after tax)		(330,318	)		(1,223,820	)
Total		(8,159,478	)		(18,977,758	)

Note:Extraordinary loss is expressed in negative figures.

— 3 —

2.2 Total number of shareholders and shareholdings of top ten shareholders and of top ten shareholders not subject to selling restrictions at the end of the reporting period

Unit: Share

Total number of shareholders		346,641
Shareholdings of top ten shareholders
Name of shareholder (Full name)	Number of shares held at the end of the period		Proportion (%)		Number of shares with selling restriction		Subject to pledge or frozen				Nature of shareholder
							Status of shares		Number
Guangzhou Railway (Group) Company		2,629,451,300		37.12		—		Nil		—	State-owned legal person
HKSCC NOMINEES LIMITED (Note)		1,417,750,751		20.01		—		Unknown		—	Foreign legal person
China Securities Finance Corporation Limited		211,800,195		2.99		—		Unknown		—	State-owned legal person
Central Huijin Investment Ltd.		85,985,800		1.21		—		Unknown		—	State-owned legal person
Taiyuan Iron & Steel (Group) Co., Ltd.		30,781,989		0.43		—		Unknown		—	State-owned legal person
Kuwait State Investment Bureau — Self-owned fund		29,095,244		0.41		—		Unknown		—	Other
Bosera Funds — Agricultural Bank — BoseraChina Securities and Financial Assets Management Program		28,101,600		0.40		—		Unknown		—	Other
Da Cheng Fund — Agricultural Bank — Da Cheng China Securities and Financial Assets Management Program		28,101,600		0.40		—		Unknown		—	Other
ICBC Credit Suisse Fund — Agricultural Bank — ICBC Credit Suisse China Securities and Financial Assets Management Program		28,101,600		0.40		—		Unknown		—	Other
Harvest Fund — Agricultural Bank — Harvest China Securities and Financial Assets Management Program		28,101,600		0.40		—		Unknown		—	Other
China Southern Fund — Agricultural Bank — China Southern China Securities and Financial Assets Management Program		28,101,600		0.40		—		Unknown		—	Other
EFund — Agricultural Bank — EFund China Securities and Financial Assets Management Program		28,101,600		0.40		—		Unknown		—	Other
Yinhua Fund — Agricultural Bank — Yinhua China Securities and Financial Assets Management Program		28,101,600		0.40		—		Unknown		—	Other
Zhong Ou Fund — Agricultural Bank — Zhong Ou China Securities and Financial Assets Management Program		28,101,600		0.40		—		Unknown		—	Other
GF Fund — Agricultural Bank — GF China Securities and Financial Assets Management Program		27,182,600		0.38		—		Unknown		—	Other

— 4 —

Name of shareholder (Full name)

Number of shares held at the end of the period

Proportion (%)

Number of shares with selling restriction

Subject to pledge or frozen

Nature of shareholder

Status of shares

Number

ChinaAMC Fund — Agricultural Bank — ChinaAMC China Securities and Financial Assets Management Program

26,838,285

0.38

—

Unknown

Other

Industrial and Commercial Bank of China Limited –China Southern Consumption Vitality Flexible Allocation Hybrid Initiated Securities Investment Fund

25,801,940

0.36

—

Unknown

—

Other

Shareholdings of top ten shareholders not subject to selling restrictions
Name of shareholder (Full name)	Number of outstanding shares not subject to selling		Class and number of shares
	restrictions held		Class		Number
Guangzhou Railway (Group) Company		2,629,451,300		RMB ordinary shares		2,629,451,300
HKSCC NOMINEES LIMITED (Note)		1,417,750,751		RMB ordinary shares		10,959,970
				Overseas listed foreign shares		1,406,790,781
China Securities Finance Corporation Limited		211,800,195		RMB ordinary shares		211,800,195
Central Huijin Investment Ltd.		85,985,800		RMB ordinary shares		85,985,800
Taiyuan Iron & Steel (Group) Co., Ltd.		30,781,989		RMB ordinary shares		30,781,989
Kuwait State Investment Bureau — Self-owned fund		29,095,244		RMB ordinary shares		29,095,244
Bosera Funds — Agricultural Bank — BoseraChina Securities and Financial Assets Management Program		28,101,600		RMB ordinary shares		28,101,600
Da Cheng Fund — Agricultural Bank — Da Cheng China Securities and Financial Assets Management Program		28,101,600		RMB ordinary shares		28,101,600
ICBC Credit Suisse Fund — Agricultural Bank — ICBC Credit Suisse China Securities and Financial Assets Management Program		28,101,600		RMB ordinary shares		28,101,600
Harvest Fund — Agricultural Bank — Harvest China Securities and Financial Assets Management Program		28,101,600		RMB ordinary shares		28,101,600
China Southern Fund — Agricultural Bank — China Southern China Securities and Financial Assets Management Program		28,101,600		RMB ordinary shares		28,101,600

— 5 —

Shareholdings of top ten shareholders not subject to selling restrictions
Name of shareholder (Full name)	Number of outstanding shares not subject to selling		Class and number of shares
	restrictions held		Class		Number
EFund — Agricultural Bank — EFund China Securities and Financial Assets Management Program		28,101,600		RMB ordinary shares		28,101,600
Yinhua Fund — Agricultural Bank — Yinhua China Securities and Financial Assets Management Program		28,101,600		RMB ordinary shares		28,101,600
Zhong Ou Fund — Agricultural Bank — Zhong Ou China Securities and Financial Assets Management Program		28,101,600		RMB ordinary shares		28,101,600
GF Fund — Agricultural Bank — GF China Securities and Financial Assets Management Program		27,182,600		RMB ordinary shares		27,182,600
ChinaAMC Fund — Agricultural Bank — ChinaAMC China Securities and Financial Assets Management Program		26,838,285		RMB ordinary shares		26,838,285
Industrial and Commercial Bank of China Limited – China Southern Consumption Vitality Flexible Allocation Hybrid Initiated Securities Investment Fund		25,801,940		RMB ordinary shares		25,801,940
Statement regarding connected relationship or concerted action of the above shareholders		The Company is unaware whether the above other shareholders are connected or concerted as defined in Measures on Administration of Acquisitions of Listed Companies.

Note: 10,959,970 A shares and 1,406,790,781 H shares of the Company, which account for 0.19% of A shares in issue and 98.29% of H shares in issue of the Company, respectively, were held by HKSCC NOMINEES LIMITED in the capacity of various clients.

2.3 Total number of preferred shareholders and shareholdings of top ten preferred shareholders and of top ten preferred shareholders not subject to selling restrictions at the end of the reporting period

¨   Applicable    þ  Not applicable

— 6 —

3. SIGNIFICANT EVENTS

3.1 Significant changes of key accounting items and financial indicators and reasons for changes

þ  Applicable    ¨  Not applicable

Unit: ¥ Currency: RMB

Balance sheet	Item	30 September 2015			31 December 2014		% change			Major reason analysis
(1)	Construction-in-progress		691,456,086			401,434,222		72.25		Increased expenditure on the investment in construction within the budget.
(2)	Intangible assets		957,735,969			671,113,049		42.71		Newly acquisition and consolidation of subsidiaries.
(3)	Trade payables		1,689,468,666			2,533,257,896		(33.31	)	Payment of materials purchase price and construction work payable.
(4)	Other payables		967,078,976			503,987,676		91.89		Newly acquisition and consolidation of subsidiaries.
Statement of profit	Item	January to September 2015			January to September 2014		% change			Major reason analysis
(1)	Finance cost		(25,700,213	)		34,915,491		N/A		At the end of 2014, the Company repaid the medium- term notes with face value of RMB3.5 billion, resulting in a decrease in the interest payable on bonds for the period.
(2)	Assets impairment loss		110,328,871			644,293		17,024.02		Provision of impairment loss on the assets of “Blue Arrow” EMU pairs for the period.
(3)	Non-operating expenses		38,725,191			129,358,570		(70.06	)	Decrease in loss on fixed assets retirement including rail and turnout replacement for the period
(4)	Income tax expenses		317,860,258			216,330,533		46.93		The increase of operating income and the decrease of non-operating expenses for the period, resulting in an increase in total pre-tax profit.
(5)	Net profit attributable to owners of the parent		882,816,554			649,778,044		35.86		The increase of operating income, the decrease of non-operating expenses and increase in income tax expenses for the period.

— 7 —

Cash flow statement	Item		January to September 2015			January to September 2014			% change			Major reason analysis
(1)	Net cash flows from investing activities	��		(1,087,776,639	)		2,000,591,625			N/A		Decrease in the collection of time deposit with terms over three months for the period.
(2)	Net cash flows from financing activities			(354,303,104	)		(566,734,240	)		(37.48	)	Decrease in final dividend for 2014 declared during the period.

3.2 Progress and impact of significant events and analysis and explanations for solutions

¨  Applicable    þ  Not applicable

3.3 Fulfillment of undertakings made by the Company and Shareholders holding 5% or above

þ Applicable¨ Not applicable

During the reporting period, Guangzhou Railway (Group) Company, the largest shareholder of the Company, has undertaken that:

(1) Guangzhou Railway (Group) Company and any of its subsidiaries would not engage, directly or indirectly, by any means, in any business activities that may compete with the railway transportation and related businesses of the Company within the service territory of the Company. After the acquisition of the transportation operational assets and businesses of Guangzhou-Pingshi Railway Line, Guangzhou Railway (Group) Company and any of its subsidiaries would not engage in horizontal competition with the Company either.

(2) Guangzhou Railway (Group) Company would reduce the number of connected transactions as much as practicable in its operation relations with the Company. For necessary connected transactions, Guangzhou Railway (Group) Company would perform these connected transactions on the basis of openness, justice and fairness without abusing its position as the largest shareholder and behaving in a manner that is detrimental to the interests of the Company.

(3) As committed at the time of the initial public offer of A shares of the Company in December 2006, Guangzhou Railway (Group) Company would lease the land of Guangzhou-Pingshi Railway Line to the Company after securing the land by way of licensed operation. Guangzhou Railway (Group) Company and the Company entered into a land lease agreement that became effective on January 1, 2007, pursuant to which, the land use right for the Guangzhou-Pingshi Railway Line was leased to the Company by Guangzhou Railway (Group) Company for a leasing term of 20 years. It was agreed by the two parties that the annual land rent should not exceed RMB74 million.

— 8 —

(4) Guangzhou Railway (Group) Company issued an undertaking letter in relation to enhancement on managing unreleased information to the Company in October 2007 to enhance the management of unreleased information.

During the reporting period, the above undertakings were fulfilled properly without any existence of breach.

3.4 Caution and explanation as to the anticipated loss of accumulated net profits from the beginning of the year to the end of the next reporting period or significant changes over same period of last year

¨  Applicable    þ  Not applicable

Company name	Guangshen Railway Company Limited
Legal representative	Wu Yong
Date	28 October 2015

— 9 —

4. APPENDIX

4.1 Financial Statements

Consolidated Balance Sheet

30 September 2015

Prepared by: Guangshen Railway Company Limited

Unit: ¥ Currency: RMB Audit status: unaudited

Item	Balance at the end of the period		Balance at the beginning of the year
Current assets:
Bank balances and cash		2,145,548,767		1,769,056,659
Trade receivables		2,623,128,028		2,313,404,994
Prepayments		11,430,418		46,361,710
Interests receivable		3,723,138		700,569
Other receivables		113,122,545		142,514,320
Inventories		360,083,440		400,508,871
Total current assets		5,257,036,336		4,672,547,123
Non-current assets:
Financial assets available for sale		53,825,879		53,825,879
Long-term receivables		31,678,100		30,197,014
Long-term equity investment		169,165,267		147,101,613
Fixed assets		23,173,144,253		24,176,101,970
Construction-in-progress		691,456,086		401,434,222
Intangible assets		957,735,969		671,113,049
Goodwill		281,254,606		281,254,606
Long-term prepaid expenses		15,369,055		22,004,395
Deferred income tax assets		51,956,394		67,583,833
Other non-current assets		41,886,002		13,498,671
Total non-current assets		25,467,471,611		25,864,115,252
Total assets		30,724,507,947		30,536,662,375
Current liabilities:
Trade payables		1,689,468,666		2,533,257,896
Receipts in advance		204,623,162		237,096,690
Staff remuneration payable		169,401,164		174,905,248
Tax payable		261,227,416		211,638,233
Dividends payable		14,320,903		548,020
Other payables		967,078,976		503,987,676
Total current liabilities		3,306,120,287		3,661,433,763

— 10 —

Consolidated Balance Sheet(Continued)

30 September 2015

Prepared by: Guangshen Railway Company Limited

Unit: ¥ Currency: RMB Audit status: unaudited

Item	Balance at the end of the period			Balance at the beginning of the year
Non-current liabilities:
Deferred income		88,428,651			88,770,917
Deferred income tax liabilities		71,999,360			—
Total non-current liabilities		160,428,011			88,770,917
Total liabilities		3,466,548,298			3,750,204,680
Shareholders’ equity:
Share capital		7,083,537,000			7,083,537,000
Capital reserves		11,562,737,107			11,562,737,107
Surplus reserves		2,596,782,586			2,596,782,586
Retained earnings		6,031,423,622			5,502,783,918
Total equity attributable to owners of the parent		27,274,480,315			26,745,840,611
Minority interests		(16,520,666	)		40,617,084
Total shareholders’ equity		27,257,959,649			26,786,457,695
Total liabilities and shareholders’ equity		30,724,507,947			30,536,662,375

Chairman: Wu Yong General Manager: Shen Yi Chief Accountant: Tang Xiangdong Head of Finance Department: Lin Wensheng

— 11 —

Balance Sheet of the Company

30 September 2015

Prepared by: Guangshen Railway Company Limited

Unit: ¥ Currency: RMB Audit status: unaudited

Item	Balance at the end of the period		Balance at the beginning of the year
Current assets:
Bank balances and cash		2,130,947,557		1,759,849,029
Trade receivables		2,599,241,587		2,300,152,675
Prepayments		11,122,168		46,334,481
Interests receivable		3,578,738		607,944
Dividends payable		562,483		6,078,958
Other receivables		155,652,225		196,158,312
Inventories		355,055,228		395,772,730
Total current assets		5,256,159,986		4,704,954,129
Non-current assets:
Financial assets available for sale		52,108,000		52,108,000
Long-term receivables		31,678,100		30,197,014
Long-term equity investment		254,086,726		232,023,072
Fixed assets		23,063,859,866		24,086,166,324
Construction-in-progress		690,196,246		401,434,222
Intangible assets		629,664,317		644,343,941
Goodwill		281,254,606		281,254,606
Long-term prepaid expenses		14,878,927		21,321,811
Deferred income tax assets		63,493,790		67,483,073
Other non-current assets		12,410,018		12,857,757
Total non-current assets		25,093,630,596		25,829,189,820
Total assets		30,349,790,582		30,534,143,949
Current liabilities:
Trade payables		1,654,716,584		2,508,583,922
Receipts in advance		203,189,960		235,232,876
Staff remuneration payable		167,040,416		173,463,463
Tax payable		253,608,246		203,574,229
Dividends payable		18,409		16,909
Other payables		648,669,060		561,135,302
Total current liabilities		2,927,242,675		3,682,006,701

— 12 —

Balance Sheet of the Company(Continued)

30 September 2015

Prepared by: Guangshen Railway Company Limited

Unit: ¥ Currency: RMB Audit status: unaudited

Item	Balance at the end of the period		Balance at the beginning of the year
Non-current liabilities:
Deferred income		88,428,651		88,770,917
Total non-current liabilities		88,428,651		88,770,917
Total liabilities		3,015,671,326		3,770,777,618
Shareholders’ equity:
Share capital		7,083,537,000		7,083,537,000
Capital reserves		11,564,461,609		11,564,461,609
Surplus reserves		2,596,782,586		2,596,782,586
Retained earnings		6,089,338,061		5,518,585,136
Total shareholders’ equity		27,334,119,256		26,763,366,331
Total liabilities and shareholders’ equity		30,349,790,582		30,534,143,949

Chairman: Wu Yong General Manager: Shen Yi Chief Accountant: Tang Xiangdong Head of Finance Department: Lin Wensheng

— 13 —

Consolidated Income Statement

January to September 2015

Prepared by: Guangshen Railway Company Limited

Unit: ¥ Currency: RMB Audit status: unaudited

Item	Amount for the period (July to September)			Amount for the same period last year (July to September)			Amount from the beginning of the year to the end of the reporting period (January to September)			Amount from the beginning of last year to the end of the reporting period (January to September)
I. Total revenues from operation		3,944,496,348			3,871,694,097			11,319,727,538			11,039,823,940
Include: Revenues from operation		3,944,496,348			3,871,694,097			11,319,727,538			11,039,823,940
II. Total operating costs		3,414,477,377			3,420,965,961			10,099,829,630			10,060,085,002
Include: Operating costs		3,336,221,616			3,301,448,386			9,776,691,873			9,762,461,828
Business tax and surcharges		21,959,086			25,740,373			57,624,293			62,330,268
Selling expenses		877,342			2,715,064			4,212,836			5,592,988
Management expenses		65,918,235			77,318,245			176,671,970			194,140,134
Finance costs		(5,746,574	)		13,145,547			(25,700,213	)		34,915,491
Assets impairment loss		(4,752,328	)		598,346			110,328,871			644,293
Add: Gains from investments (loss denoted by “—”)		7,702,000			917,267			(15,517,422	)		7,094,475
Include:Gains from investments in associates and joint ventures		1,817,797			917,267			2,953,654			2,190,975
III. Profit from operation (loss denoted by “—”)		537,720,971			451,645,403			1,204,380,486			986,833,413
Add: Non-operating income		20,348,835			1,352,510			29,212,900			8,193,272
Include: Gain on disposal of non-current assets		10,929,177			27,720			10,936,228			100,660
Less: Non-operating expenses		16,281,667			24,751,028			38,725,191			129,358,570
Include: Loss on disposal of non-current assets		15,217,369			22,789,282			35,529,704			124,871,097
IV. Gross profit (gross loss denoted by “—”)		541,788,139			428,246,885			1,194,868,195			865,668,115
Less: Income tax expenses		127,661,402			107,572,848			317,860,258			216,330,533
V. Net profit (net loss denoted by “—”)		414,126,737			320,674,037			877,007,937			649,337,582
Net profit attributable to owners of the parent		418,078,384			321,057,504			882,816,554			649,778,044
Profit or loss of minority shareholders		(3,951,647	)		(383,467	)		(5,808,617	)		(440,462	)

— 14 —

Consolidated Income Statement(Continued)

January to September 2015

Prepared by: Guangshen Railway Company Limited

Unit: ¥ Currency: RMB Audit status: unaudited

Item	Amount for the period (July to September)			Amount for the same period last year (July to September)			Amount from the beginning of the year to the end of the reporting period (January to September)			Amount from the beginning of last year to the end of the reporting period (January to September)
VI. Net other comprehensive income after tax		—			—			—			—
VII. Total comprehensive income		414,126,737			320,674,037			877,007,937			649,337,582
Total comprehensive income attributable to owners of the parent		418,078,384			321,057,504			882,816,554			649,778,044
Total comprehensive income attributable to minority shareholders		(3,951,647	)		(383,467	)		(5,808,617	)		(440,462	)
VIII. Earnings per share:
(1) Basic earnings per share (¥/share)		0.059			0.045			0.125			0.092
(2) Diluted earnings per share (¥/share)		0.059			0.045			0.125			0.092

Chairman: Wu Yong General Manager: Shen Yi Chief Accountant: Tang Xiangdong Head of Finance Department: Lin Wensheng

— 15 —

Income Statement of the Company

January to September 2015

Prepared by: Guangshen Railway Company Limited

Unit: ¥ Currency: RMB Audit status: unaudited

Item	Amount for the period (July to September)			Amount for the same period last year (July to September)		Amount from the beginning of the year to the end of the reporting period (January to September)			Amount from the beginning of last year to the end of the reporting period (January to September)
I. Revenues from operation		3,831,057,989			3,758,432,197		11,006,904,623			10,716,004,056
Less: Operating costs		3,255,370,100			3,219,284,861		9,541,576,171			9,528,926,150
Business tax and surcharges		16,241,703			20,053,225		41,904,126			46,034,272
Selling expenses		1,216,554			2,130,050		4,054,031			4,419,732
Management expenses		46,631,603			54,828,854		124,568,611			132,396,606
Finance costs		(9,333,148	)		13,302,185		(29,021,120	)		35,354,922
Assets impairment loss		(4,743,527	)		598,346		94,324,042			644,293
Add: Gains from investments (loss denoted by “—”)		7,702,000			2,085,239		13,524,804			8,262,447
Include:Gains from investments in associates and joint ventures		1,817,797			917,267		2,953,654			2,190,975
II. Profit from operation (loss denoted by “—”)		533,376,704			450,319,915		1,243,023,566			976,490,528
Add: Non-operating income		16,261,084			1,335,292		23,469,335			8,160,986
Include: Gain on disposal of non- current assets		10,929,177			27,720		10,935,758			100,020
Less: Non-operating expenses		16,258,119			24,742,371		38,653,053			129,303,198
Include: Loss on disposal of non- current assets		15,193,867			22,789,282		35,490,791			124,870,572
III. Gross profit (gross loss denoted by “—”)		533,379,669			426,912,836		1,227,839,848			855,348,316
Less: Income tax expenses		125,512,982			106,595,274		302,910,073			212,566,971
IV. Net profit (net loss denoted by “—”)		407,866,687			320,317,562		924,929,775			642,781,345
V. Net other comprehensive income after tax		—			—		—			—
VI. Total comprehensive income		407,866,687			320,317,562		924,929,775			642,781,345

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Income Statement of the Company(Continued)

January to September 2015

Prepared by: Guangshen Railway Company Limited

Unit: ¥ Currency: RMB Audit status: unaudited

Item	Amount for the period (July to September)		Amount for the same period last year (July to September)		Amount from the beginning of the year to the end of the reporting period (January to September)		Amount from the beginning of last year to the end of the reporting period (January to September)
VII. Earnings per share:
(1) Basic earnings per share (¥/share)		N/A		N/A		N/A		N/A
(2) Diluted earnings per share (¥/share)		N/A		N/A		N/A		N/A

Chairman: Wu Yong General Manager: Shen Yi Chief Accountant: Tang Xiangdong Head of Finance Department: Lin Wensheng

— 17 —

Consolidated Cash Flow Statement

January to September 2015

Prepared by: Guangshen Railway Company Limited

Unit: ¥ Currency: RMB Audit status: unaudited

Item	Amount from the beginning of the year to the end of the reporting period (January to September)			Amount from the beginning of last year to the end of the reporting period (January to September)
I. Cash flows from operating activities:
Cash received from sales of goods or rendering of services		9,609,612,254			9,037,771,970
Cash received relating to other operating activities		171,344,730			93,448,557
Sub-total of cash inflows from operating activities		9,780,956,984			9,131,220,527
Cash paid for goods purchased and services received		3,508,901,424			2,927,001,124
Cash paid to and on behalf of employees		3,741,850,002			3,585,884,986
Tax paid		649,257,756			697,804,061
Cash paid relating to other operating activities		64,375,951			97,743,292
Sub-total of cash outflows from operating activities		7,964,385,133			7,308,433,463
Net cash flows from operating activities		1,816,571,851			1,822,787,064
II.Cash flows from investing activities:
Cash received from investment gains		5,884,200			4,903,500
Net cash received from disposal of fixed assets, intangible assets and other long-term assets		278,767			155,380
Cash received relating to other investment activities		1,596,000			2,948,694,900
Sub-total of cash inflows from investing activities		7,758,967			2,953,753,780
Cash paid to acquire or construct fixed assets, intangible assets and other long-term assets		1,012,999,797			813,264,712
Net cash paid for business combination		61,425,809			139,897,443
Cash paid for investment		19,110,000			—
Cash paid relating to other investment activities		2,000,000			—
Sub-total of cash outflows from investing activities		1,095,535,606			953,162,155
Net cash flows from investing activities		(1,087,776,639	)		2,000,591,625

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Consolidated Cash Flow Statement(Continued)

January to September 2015

Prepared by: Guangshen Railway Company Limited

Unit: ¥ Currency: RMB Audit status: unaudited

Item	Amount from the beginning of the year to the end of the reporting period (January to September)			Amount from the beginning of last year to the end of the reporting period (January to September)
III. Cash flows from financing activities:
Cash paid for distribution of dividends or profits or payment of interests		354,303,104			566,584,240
Cash paid relating to other financing activities		—			150,000
Sub-total of cash outflows from financing activities		354,303,104			566,734,240
Net cash flows from financing activities		(354,303,104	)		(566,734,240	)
IV. Effect of foreign exchange rate changes on cash and cash equivalents		—			—
V. Net increase in cash and cash equivalents		374,492,108			3,256,644,449
Add: Balance of cash and cash equivalents at the beginning of the period		1,665,056,659			412,677,598
VI. Balance of cash and cash equivalents at the end of the period		2,039,548,767			3,669,322,047

Chairman: Wu Yong General Manager: Shen Yi Chief Accountant: Tang Xiangdong Head of Finance Department: Lin Wensheng

— 19 —

Cash Flow Statement of the Company

January to September 2015

Prepared by: Guangshen Railway Company Limited

Unit: ¥ Currency: RMB Audit status: unaudited

Item	Amount from the beginning of the year to the end of the reporting period (January to September)			Amount from the beginning of last year to the end of the reporting period (January to September)
I. Cash flows from operating activities:
Cash received from sales of goods or rendering of services		9,272,153,002			8,722,977,885
Cash received relating to other operating activities		169,681,072			90,612,289
Sub-total of cash inflows from operating activities		9,441,834,074			8,813,590,174
Cash paid for goods purchased and services received		3,370,889,242			2,797,348,529
Cash paid to and on behalf of employees		3,592,921,404			3,438,733,416
Tax paid		623,774,688			673,337,329
Cash paid relating to other operating activities		48,488,114			90,192,662
Sub-total of cash outflows from operating activities		7,636,073,448			6,999,611,936
Net cash flows from operating activities		1,805,760,626			1,813,978,238
II.Cash flows from investing activities:
Cash received from investment gains		11,963,158			10,146,766
Net cash received from disposal of fixed assets, intangible assets and other long-term assets		263,211			154,740
Cash received relating to other investment activities		1,540,000			2,950,040,000
Sub-total of cash inflows from investing activities		13,766,369			2,960,341,506
Cash paid to acquire or construct fixed assets, intangible assets and other long-term assets		1,011,937,448			808,226,176
Net cash paid for business combination		63,204,169			139,897,443
Cash paid for investment		19,110,000			—
Sub-total of cash outflows from investing activities		1,094,251,617			948,123,619
Net cash flows from investing activities		(1,080,485,248	)		2,012,217,887

— 20 —

Cash Flow Statement of the Company(Continued)

January to September 2015

Prepared by: Guangshen Railway Company Limited

Unit: ¥ Currency: RMB Audit status: unaudited

Item	Amount from the beginning of the year to the end of the reporting period (January to September)			Amount from the beginning of last year to the end of the reporting period (January to September)
III. Cash flows from financing activities:
Cash paid for distribution of dividends or profits or payment of interests		354,176,850			566,584,240
Cash paid relating to other financing activities		—			150,000
Sub-total of cash outflows from financing activities		354,176,850			566,734,240
Net cash flows from financing activities		(354,176,850	)		(566,734,240	)
IV. Effect of foreign exchange rate changes on cash and cash equivalents		—			—
V. Net increase in cash and cash equivalents		371,098,528			3,259,461,885
Add:Balance of cash and cash equivalents at the beginning of the period		1,659,849,029			404,626,412
VI. Balance of cash and cash equivalents at the end of the period		2,030,947,557			3,664,088,297

Chairman: Wu Yong General Manager: Shen Yi Chief Accountant: Tang Xiangdong Head of Finance Department: Lin Wensheng

4.2 Audit Report

¨  Applicable    þ  Not applicable

— 21 —