Guangshen Railway Company Limited (GNGYF) 6-K Overseas Regulatory Announcement Third Quarterly Report for 2016

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 2016

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. Hu Lingling, 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 2016 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	31,355,975,205	31,943,271,998	(1.84)
Net assets attributable to shareholders of listed company	27,985,239,488	27,462,486,711	1.90
	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	1,195,634,287	1,816,571,851	(34.18)
	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	12,666,213,585	11,319,727,538	11.90
Net profit attributable to shareholders of listed company	1,089,435,737	882,816,554	23.40
Net profits attributable to shareholders of listed company after extraordinary gain or loss	1,120,000,467	901,794,312	24.20
Weighted average return on net assets (%)	3.93	3.27	0.66% increase
Basic earnings per share (¥/share)	0.154	0.125	23.20
Diluted earnings per share (¥/share)	0.154	0.125	23.20

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

☑    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		(9,193,858	)		(32,068,090	)
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		2,846,032			4,501,651
Reversal of impairment provision for receivables subject to individual impairment assessment test		400			800
Other non-operating income and expenses other than the items above		(3,736,042	)		(9,576,984	)
Effect of income tax		1,532,809			6,653,995
Effect of minority interests (after tax)		(55	)		(76,102	)
Total		(8,550,714	)		(30,564,730	)

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		262,627
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)		1,426,684,195		20.14		—		Unknown		—	Foreign legal person
China Securities Finance Corporation Limited		180,772,887		2.55		—		Unknown		—	State-owned legal person
Central Huijin Asset Management Co., Ltd.		85,985,800		1.21		—		Unknown		—	State-owned legal person
The Government of Kuwait Investment Authority — own funds		42,881,144		0.61		—		Unknown		—	Other
China Galaxy Securities Co., Ltd.		40,625,323		0.57		—		Unknown		—	State-owned legal person
Industrial and Commercial Bank of China Limited — China Southern Consumption Vitality Flexible Allocation Hybrid Initiated Securities Investment Fund		32,142,940		0.45		—		Unknown		—	Other
New China Life Insurance Company Ltd. — Dividend — Group Dividend — 018L — FH001 Hu		31,439,052		0.44		—		Unknown		—	Other
Taiyuan Iron & Steel (Group) Co., Ltd.		30,781,989		0.43		—		Unknown		—	State-owned legal person
National Social Insurance Fund — 106 Portfolio		30,031,749		0.42		—		Unknown		—	Other

— 4 —

Shareholdings of top ten shareholders not subject to selling restrictions
Name of shareholder (Full name)	Number of outstanding shares not subject to selling restrictions held		Class and number of shares
			Class	Number
Guangzhou Railway (Group) Company		2,629,451,300	RMB ordinary shares		2,629,451,300
HKSCC NOMINEES LIMITED (Note)		1,426,684,195	RMB ordinary shares		16,372,746
			Overseas listed foreign shares		1,410,311,449
China Securities Finance Corporation Limited		180,772,887	RMB ordinary shares		180,772,887
Central Huijin Asset Management Co., Ltd.		85,985,800	RMB ordinary shares		85,985,800
The Government of Kuwait Investment Authority — own funds		42,881,144	RMB ordinary shares		42,881,144
China Galaxy Securities Co., Ltd.		40,625,323	RMB ordinary shares		40,625,323
Industrial and Commercial Bank of China Limited — China Southern Consumption Vitality Flexible Allocation Hybrid Initiated Securities Investment Fund		32,142,940	RMB ordinary shares		32,142,940
New China Life Insurance Company Ltd. — Dividend — Group Dividend — 018L — FH001 Hu		31,439,052	RMB ordinary shares		31,439,052
Taiyuan Iron & Steel (Group) Co., Ltd.		30,781,989	RMB ordinary shares		30,781,989
National Social Insurance Fund — 106 Portfolio		30,031,749	RMB ordinary shares		30,031,749
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: 16,372,746 A shares and 1,410,311,449 H shares of the Company, which account for 0.30% of A shares in issue and 98.53% 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    ☑    Not applicable

— 5 —

3. SIGNIFICANT EVENTS

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

☑    Applicable    ☐    Not applicable

											Unit:  ¥    Currency: RMB
Balance sheet	Item	30 September 2016			31 December 2015			% change			Major reason analysis
(1)	Bank balances and cash		1,588,046,887			2,326,803,114			(31.75	)	Payment of vehicle maintenance fee and construction work payable which were not settled in the previous year.
(2)	Trade receivables		3,721,711,973			2,886,065,085			28.95		Increase in railway operation service receivable and income from transportation.
(3)	Prepayments		55,423,315			5,755,865			862.90		Increase in prepayments for procurement of materials.
(4)	Other receivables		166,924,345			118,851,817			40.45		Increase in disbursement and petty cash and deposits.
(5)	Intangible assets		1,636,418,863			950,161,208			72.23		Adjustment of reclassification of assets.
(6)	Trade payables		1,683,717,913			2,531,288,960			(33.48	)	Payment of vehicle maintenance fee and construction work payable which were not settled in the previous year.
(7)	Receipts in advance		168,334,515			249,825,054			(32.62	)	Decrease in receipt of passenger fare in advance.
(8)	Tax payable		154,522,660			330,830,918			(53.29	)	Decrease in enterprise income tax payable.
Statement of profit	Item	January to September 2016			January to September 2015			% change			Major reason analysis
(1)	Assets impairment loss		(800	)		134,684,147			(100.00)		Decrease in provision of impairment loss of fixed assets for the year.
Cash flow statement	Item	January to September 2016			January to September 2015			% change			Major reason analysis
(1)	Net cash flows from operating activities		1,195,634,287			1,816,571,851			(34.18	)	Increase in trade receivable and payment of costs and expenses.
(2)	Net cash flows from investing activities		(1,369,307,554	)		(1,087,776,639	)		25.88		Payment of construction work payable which was not settled in the previous year.
(3)	Net cash flows from financing activities		(566,682,960	)		(354,303,104	)		59.94		Increase in cash dividends distributed for the year.

— 6 —

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

☐    Applicable    ☑    Not applicable

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

☑    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.

(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    ☑    Not applicable

Company name	Guangshen Railway Company Limited
Legal representative	Wu Yong
Date	26 October 2016

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4. APPENDIX

4.1 Financial Statements

Consolidated Balance Sheet

30 September 2016

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		1,588,046,887		2,326,803,114
Trade receivables		3,721,711,973		2,886,065,085
Prepayments		55,423,315		5,755,865
Interests receivable		2,340,888		2,415,513
Other receivables		166,924,345		118,851,817
Inventories		294,887,896		307,057,807
Other current assets		—		15,590,092
Total current assets		5,829,335,304		5,662,539,293
Non-current assets:
Financial assets available for sale		53,825,879		53,825,879
Long-term receivables		32,315,051		30,804,185
Long-term equity investment		178,953,090		168,710,990
Fixed assets		22,497,260,318		24,072,123,391
Construction-in-progress		678,937,448		569,572,534
Intangible assets		1,636,418,863		950,161,208
Goodwill		281,254,606		281,254,606
Long-term prepaid expenses		8,180,078		14,485,113
Deferred income tax assets		95,686,795		93,249,259
Other non-current assets		63,807,773		46,545,540
Total non-current assets		25,526,639,901		26,280,732,705
Total assets		31,355,975,205		31,943,271,998

— 8 —

Consolidated Balance Sheet(Continued)

30 September 2016

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 liabilities:
Trade payables		1,683,717,913			2,531,288,960
Receipts in advance		168,334,515			249,825,054
Staff remuneration payable		181,279,035			166,107,393
Tax payable		154,522,660			330,830,918
Dividends payable		15,568,994			14,318,034
Other payables		1,013,120,859			1,031,280,581
Total current liabilities		3,216,543,976			4,323,650,940
Non-current liabilities:
Deferred income		107,364,364			103,984,771
Deferred income tax liabilities		69,506,636			71,376,179
Total non-current liabilities		176,871,000			175,360,950
Total liabilities		3,393,414,976			4,499,011,890
Shareholders’ equity:
Share capital		7,083,537,000			7,083,537,000
Capital reserves		11,562,737,107			11,562,737,107
Surplus reserves		2,708,543,178			2,708,543,178
Retained earnings		6,630,422,203			6,107,669,426
Total equity attributable to owners of the parent		27,985,239,488			27,462,486,711
Minority interests		(22,679,259	)		(18,226,603	)
Total shareholders’ equity		27,962,560,229			27,444,260,108
Total liabilities and shareholders’ equity		31,355,975,205			31,943,271,998

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

— 9 —

Balance Sheet of the Company

30 September 2016

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		1,567,119,072		2,313,739,678
Trade receivables		3,699,736,706		2,880,289,803
Prepayments		55,387,435		5,724,794
Interests receivable		2,306,875		2,289,802
Dividends receivable		—		4,491,687
Other receivables		218,357,536		158,457,319
Inventories		289,551,600		301,988,956
Other current assets		—		15,840,718
Total current assets		5,832,459,224		5,682,822,757
Non-current assets:
Financial assets available for sale		52,108,000		52,108,000
Long-term receivables		32,315,051		30,804,185
Long-term equity investment		262,074,549		251,832,449
Fixed assets		22,394,485,240		23,964,531,346
Construction-in-progress		677,956,004		568,591,090
Intangible assets		1,319,678,720		624,922,433
Goodwill		281,254,606		281,254,606
Long-term prepaid expenses		7,978,054		14,088,793
Deferred income tax assets		107,153,617		104,770,117
Other non-current assets		34,331,789		17,069,555
Total non-current assets		25,169,335,630		25,909,972,574
Total assets		31,001,794,854		31,592,795,331

— 10 —

Balance Sheet of the Company(Continued)

30 September 2016

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 liabilities:
Trade payables		1,639,495,591		2,505,530,208
Receipts in advance		167,122,571		248,092,497
Staff remuneration payable		178,284,795		163,697,570
Tax payable		149,037,284		321,554,729
Dividends payable		43,608		15,540
Other payables		713,204,445		723,124,617
Total current liabilities		2,847,188,294		3,962,015,161
Non-current liabilities:
Deferred income		107,364,364		103,984,771
Total non-current liabilities		107,364,364		103,984,771
Total liabilities		2,954,552,658		4,065,999,932
Shareholders’ equity:
Share capital		7,083,537,000		7,083,537,000
Capital reserves		11,564,461,609		11,564,461,609
Surplus reserves		2,708,543,178		2,708,543,178
Retained earnings		6,690,700,409		6,170,253,612
Total shareholders’ equity		28,047,242,196		27,526,795,399
Total liabilities and shareholders’ equity		31,001,794,854		31,592,795,331

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

— 11 —

Consolidated Income Statement

January to September 2016

Prepared by: Guangshen Railway Company Limited Unit: ¥ Currency: RMB Audit status: unaudited

Item	Amount for the period (July to September)			Amount for the previous period (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		4,587,610,430			3,944,496,348			12,666,213,585			11,319,727,538
Include: Revenues from operation		4,587,610,430			3,944,496,348			12,666,213,585			11,319,727,538
II.    Total operating costs		4,049,377,257			3,414,477,374			11,200,011,519			10,124,184,906
Include: Operating costs		3,973,897,624			3,336,221,616			10,995,624,672			9,776,691,873
Business tax and surcharges		15,150,868			21,959,086			49,504,981			57,624,293
Selling expenses		3,678,569			877,342			8,036,198			4,212,836
Management expenses		62,009,403			65,918,235			166,482,402			176,671,970
Finance costs		(5,358,807	)		(5,746,574	)		(19,635,934	)		(25,700,213	)
Assets impairment loss		(400	)		(4,752,331	)		(800	)		134,684,147
Add: Gains from investments (loss denoted by “—”)		9,992,504			7,701,997			16,126,300			8,837,854
Include:Gains from investments in associates and joint ventures		4,108,304			1,817,797			10,242,100			2,953,654
III.    Profit from operation (loss denoted by “—”)		548,225,677			537,720,971			1,482,328,366			1,204,380,486
Add: Non-operating income		3,200,468			20,348,835			5,847,206			29,212,900
Include: Gain on disposal of non- current assets		137,136			10,929,177			269,577			10,936,228
Less: Non-operating expenses		13,284,337			16,281,667			42,990,629			38,725,191
Include: Loss on disposal of non- current assets		9,330,994			15,217,369			32,337,667			35,529,704
IV.    Gross profit (gross loss denoted by “—”)		538,141,808			541,788,139			1,445,184,943			1,194,868,195
Less: Income tax expenses		131,610,559			127,661,402			358,978,970			317,860,258
V.    Net profit (net loss denoted by “—”)		406,531,249			414,126,737			1,086,205,973			877,007,937
Net profit attributable to owners of the parent		407,613,063			418,078,384			1,089,435,737			882,816,554
Profit or loss of minority shareholders		(1,081,814	)		(3,951,647	)		(3,229,764	)		(5,808,617	)

— 12 —

Consolidated Income Statement(Continued)

January to September 2016

Prepared by: Guangshen Railway Company Limited Unit: ¥ Currency: RMB Audit status: unaudited

Item	Amount for the period (July to September)			Amount for the previous period (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		406,531,249			414,126,737			1,086,205,973			877,007,937
Total comprehensive income attributable to owners of the parent		407,613,063			418,078,384			1,089,435,737			882,816,554
Total comprehensive income attributable to minority shareholders		(1,081,814	)		(3,951,647	)		(3,229,764	)		(5,808,617	)
VIII.  Earnings per share:
(1) Basic earnings per share (¥/share)		0.057			0.059			0.154			0.125
(2) Diluted earnings per share (¥/share)		0.057			0.059			0.154			0.125

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

— 13 —

Income Statement of the Company

January to September 2016

Prepared by: Guangshen Railway Company Limited		Unit: ¥ Currency: RMB						Audit status: unaudited
Item	Amount for the period (July to September)			Amount for the pervious period (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		4,469,606,662			3,831,057,989			12,321,681,742			11,006,904,623
Less: Operating costs		3,880,649,184			3,255,370,100			10,724,094,174			9,541,576,171
Business tax and surcharges		14,764,704			16,241,703			41,165,670			41,904,126
Selling expenses		3,676,471			1,216,554			8,026,337			4,054,031
Management expenses		45,510,860			46,631,603			117,873,929			124,568,611
Finance costs		(5,207,613	)		(9,333,148	)		(19,158,054	)		(29,021,120	)
Assets impairment loss		(400	)		(4,743,527	)		(800	)		94,324,042
Add:    Gains from investments (loss denoted by “—”)		13,527,047			7,702,000			29,203,866			13,524,804
Include:    Gains from investments in associates and joint ventures		4,108,304			1,817,797			10,242,100			2,953,654
II.    Profit from operation (loss denoted by “—”)		543,740,503			533,376,704			1,478,884,352			1,243,023,566
Add: Non-operating income		3,194,375			16,261,084			5,676,079			23,469,335
Include: Gain on disposal of non- current assets		137,025			10,929,177			250,202			10,935,758
Less: Non-operating expenses		13,173,740			16,258,119			42,601,140			38,653,053
Include: Loss on disposal of non- current assets		9,330,994	��		15,193,867			32,249,396			35,490,791
III. Gross profit (gross loss denoted by “—”)		533,761,138			533,379,669			1,441,959,291			1,227,839,848
Less: Income tax expenses		130,595,600			125,512,982			354,829,534			302,910,073
IV. Net profit (net loss denoted by “—”)		403,165,538			407,866,687			1,087,129,757			924,929,775
V. Net other comprehensive income after tax		—			—			—			—
VI. Total comprehensive income		403,165,538			407,866,687			1,087,129,757			924,929,775
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: Hu Lingling Chief Accountant: Tang Xiangdong Head of Finance Department: Lin Wensheng

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Consolidated Cash Flow Statement

January to September 2016

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		9,898,054,893			9,609,612,254
Cash received relating to other operating activities		20,123,534			171,344,730
Sub-total of cash inflows from operating activities		9,918,178,427			9,780,956,984
Cash paid for goods purchased and services received		3,264,444,564			3,508,901,424
Cash paid to and on behalf of employees		4,431,181,300			3,741,850,002
Tax paid		939,968,501			649,257,756
Cash paid relating to other operating activities		86,949,775			64,375,951
Sub-total of cash outflows from operating activities		8,722,544,140			7,964,385,133
Net cash flows from operating activities		1,195,634,287			1,816,571,851
II.    Cash flows from investing activities:
Cash received from investment gains		5,884,200			5,884,200
Net cash received from disposal of fixed assets, intangible assets and other long-term assets		16,570,129			278,767
Cash received relating to other investment activities		5,412,614			1,596,000
Sub-total of cash inflows from investing activities		27,866,943			7,758,967
Cash paid to acquire or construct fixed assets, intangible assets and other long-term assets		1,395,574,497			1,012,999,797
Cash paid for investment		—			19,110,000
Net cash paid by subsidiaries and other operating units		—			61,425,809
Cash paid relating to other investment activities		1,600,000			2,000,000
Sub-total of cash outflows from investing activities		1,397,174,497			1,095,535,606
Net cash flows from investing activities		(1,369,307,554	)		(1,087,776,639	)

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Consolidated Cash Flow Statement(Continued)

January to September 2016

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		566,682,960			354,303,104
	Sub-total of cash outflows from financing activities		566,682,960			354,303,104
	Net cash flows from financing activities		(566,682,960	)		(354,303,104	)
IV.	Effect of foreign exchange rate changes on cash and cash equivalents		—			—
V.	Net increase in cash and cash equivalents		(740,356,227	)		374,492,108
	Add:Balance of cash and cash equivalents at the beginning of the period		2,326,803,114			1,665,056,659
VI.	Balance of cash and cash equivalents at the end of the period		1,586,446,887			2,039,548,767

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

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Cash Flow Statement of the Company

January to September 2016

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		9,552,308,225			9,272,153,002
Cash received relating to other operating activities		19,355,946			169,681,072
Sub-total of cash inflows from operating activities		9,571,664,171			9,441,834,074
Cash paid for goods purchased and services received		3,150,669,186			3,370,889,242
Cash paid to and on behalf of employees		4,250,880,468			3,592,921,404
Tax paid		912,805,582			623,774,688
Cash paid relating to other operating activities		84,040,043			48,488,114
Sub-total of cash outflows from operating activities		8,398,395,279			7,636,073,448
Net cash flows from operating activities		1,173,268,892			1,805,760,626
II.    Cash flows from investing activities:
Cash received from investment gains		19,918,907			11,963,158
Net cash received from disposal of fixed assets, intangible assets and other long-term assets		16,527,328			263,211
Cash received relating to other investment activities		5,366,114			1,540,000
Sub-total of cash inflows from investing activities		41,812,349			13,766,369
Cash paid to acquire or construct fixed assets, intangible assets and other long-term assets		1,395,018,887			1,011,937,448
Cash paid for investment		—			19,110,000
Net cash paid by subsidiaries and other operating units		—			63,204,169
Sub-total of cash outflows from investing activities		1,395,018,887			1,094,251,617
Net cash flows from investing activities		(1,353,206,538	)		(1,080,485,248	)

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Cash Flow Statement of the Company(Continued)

January to September 2016

	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		566,682,960			354,176,850
	Sub-total of cash outflows from financing activities		566,682,960			354,176,850
	Net cash flows from financing activities		(566,682,960	)		(354,176,850	)
IV.	Effect of foreign exchange rate changes on cash and cash equivalents		—			—
V.	Net increase in cash and cash equivalents		(746,620,606	)		371,098,528
	Add:Balance of cash and cash equivalents at the beginning of the period		2,313,739,678			1,659,849,029
VI.	Balance of cash and cash equivalents at the end of the period		1,567,119,072			2,030,947,557

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

4.2 Audit Report

☐    Applicable    ☑    Not applicable

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