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方大B:2021年半年度报告(英文版)2021-08-18  

                                               Interim Report 2021 of China Fangda Group Co., Ltd.




China Fangda Group Co., Ltd.

     2021 Interim Report




         August 2021




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                                                Interim Report 2021 of China Fangda Group Co., Ltd.




  Chapter 1 Important Statement, Table of Contents and Definitions


    The members of the Board and the Company guarantee that the interim

report is free from any false information, misleading statement or material

omission and are jointly and severally liable for the information’s truthfulness,

accuracy and integrity.

    Mr. Xiong Jianming, the Chairman of Board, Mr. Lin Kebin, the Chief

Financial Officer, and Mr. Wu Bohua, the manager of accounting department

declare: the Financial Report carried in this report is authentic and completed.

    All the Directors have attended the meeting of the board meeting at which

this report was examined.

    Forward-looking statements involved in this report including future plans

do not make any material promise to investors. Investors should pay attention to

investment risks.

    The Company has specified market, management and production and

operation risks in this report. Please review the 10. Risks Facing the Company

and Measures in Chapter 3 Management Discussion and Analysis.

    The Company will distribute no cash dividends or bonus shares and has no

reserve capitalization plan.




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                                                                    Table of Contents



Chapter 1 Important Statement, Table of Contents and Definitions.........................................................................................................2
Chapter 2 About the Company and Financial Highlights ........................................................................................................................7
Chapter 3 Management Discussion and Analysis .................................................................................................................................. 11
Chapter IV Corporation Governance .....................................................................................................................................................34
V. Environmental and social responsibility............................................................................................................................................36
Chapter VI Significant Events ...............................................................................................................................................................38
Chapter VII Changes in Share Capital and Shareholders ......................................................................................................................48
Chapter VIII Preferred Shares ...............................................................................................................................................................54
Chapter IX Information about the Company’s Securities ...................................................................................................................55
Chapter X Financial Statements ............................................................................................................................................................56




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                                               Reference


1. Financial statements stamped and signed by the legal representative, CFO and accounting manager;
2. Originals of all documents and manuscripts of Public Notices of the Company disclosed in public.




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                                              Definitions


                                     Refers
                     Terms                                                   Description
                                       to

                                     Refers
Fangda Group, company, the Company            China Fangda Group Co., Ltd.
                                       to

                                     Refers
Articles of Association                       Articles of Association of China Fangda Group Co., Ltd.
                                       to

                                     Refers
Meeting of shareholders                       Meetings of shareholders of China Fangda Group Co., Ltd.
                                       to

                                     Refers
Board of Directors                            Board of Directors of China Fangda Group Co., Ltd.
                                       to

                                     Refers
Supervisory Committee                         Supervisory Committee of China Fangda Group Co., Ltd.
                                       to

                                     Refers
Banglin Technology                            Shenzhen Banglin Technologies Development Co., Ltd.
                                       to

                                     Refers Gong Qing Cheng Shi Li He Investment Management Partnership
Shilihe Co.
                                       to     Enterprise (limited partner)

                                     Refers
Shengjiu Co.                                  Shengjiu Investment Ltd.
                                       to

                                     Refers
Fangda Jianke                                 Shenzhen Fangda Jianke Group Co., Ltd.
                                       to

                                     Refers
Fangda Zhichuang                              Fangda Zhichuang Science and Technology Co., Ltd.
                                       to

                                     Refers
Fangda New Material                           Fangda New Materials (Jiangxi) Co., Ltd.
                                       to

                                     Refers
Fangda New Energy                             Shenzhen Fangda New Energy Co., Ltd.
                                       to

                                     Refers
Fangda Property                               Shenzhen Fangda Property Development Co., Ltd.
                                       to

                                     Refers
Chengdu Fangda                                Chengda Fangda Construction Technology Co., Ltd.
                                       to

                                     Refers
Dongguan Fangda New Material                  Dongguan Fangda New Material Co., Ltd.
                                       to

Kechuangyuan Software                Refers Shenzhen Qianhai Kechuangyuan Software Co., Ltd.


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                                                               Interim Report 2021 of China Fangda Group Co., Ltd.


                                   to

                                 Refers
Fangda Property Management                Shenzhen Fangda Property Management Co., Ltd.
                                   to

                                 Refers
Fangda Property                           Fangda (Jiangxi) Property Development Co., Ltd.
                                   to

                                 Refers
Hongjun Investment Company                Shenzhen Hongjun Investment Co., Ltd.
                                   to

                                 Refers
Fangda Investment Partnership             Shenzhen Fangda Investment Partnership (Limited Partnership)
                                   to

                                 Refers
Lifu Investment                           Shenzhen Lifu Investment Co., Ltd
                                   to

                                 Refers
Xunfu Investment                          Shenzhen Xunfu Investment Co., Ltd
                                   to

                                 Refers
Jianke Hong Kong                          Fangda Jianke Hong Kong Co., Ltd.
                                   to

                                 Refers
Shanghai Jianzhi                          Shanghai Fangda Jianzhi Technology Co., Ltd.
                                   to

                                 Refers
Shanghai Zhijian                          Shanghai Fangda Zhijian Technology Co., Ltd
                                   to

                                 Refers
Fangda Cloud Rail                         Shenzhen Fangda Cloud Rail Technology Co., Ltd.
                                   to

                                 Refers
Jianke Australia                          Fangda Australia Pty Ltd
                                   to

                                 Refers
Zhichuang Technology Hong Kong            Fangda Zhichuang Science and Technology (Hong Kong) Co., Ltd.
                                   to

                                 Refers
Shihui International                      Shihui International Holding Co., Ltd.
                                   to

                                 Refers
Fangda Southeast Asia                     Fangda Southeast Asia Co., Ltd.
                                   to

                                 Refers
Yunzhu                                    Shenzhen Yunzhu Industrial Co., Ltd.
                                   to

                                 Refers
Shenyang Fangda                           Shenyang Fangda Semi-conductor Lighting Co., Ltd.
                                   to

                                 Refers
Shenzhen Woke                             Shenzhen Woke Semi-conductor Lighting Co., Ltd.
                                   to

                                 Refers
SZSE                                      Shenzhen Stock Exchange
                                   to




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             Chapter 2 About the Company and Financial Highlights

1. Company Profile

Stock ID                        Fangda Group, Fangda B                  Stock code                    000055, 200055

Modified stock ID (if any)      None

Stock Exchange                  Shenzhen Stock Exchange

Chinese name                    China Fangda Group Co., Ltd.

English name (if any)           Fangda Group

English name (if any)           CHINA FANGDA GROUP CO., LTD.

English abbreviation (if any)   CFGC

Legal representative            Xiong Jianming


2. Contacts and liaisons

                                                      Secretary of the Board                  Representative of Stock Affairs

PRINTED NAME                                Xiao Yangjian                               Guo Linchen

                                            39th Floor, Building T1, Fangda Town,       39th Floor, Building T1, Fangda Town,
Address                                     No.2, Longzhu 4th Road, Nanshan             No.2, Longzhu 4th Road, Nanshan
                                            District, Shenzhen                          District, Shenzhen

Telephone                                   86(755) 26788571 ext. 6622                  86(755) 26788571 ext. 6622

Fax                                         86(755)26788353                             86(755)26788353

Email                                       zqb@fangda.com                              zqb@fangda.com


3. Other Information

1. Liaison

Changes to the Company’s registration address, office address, post code, website or email during the report period
√ Applicable □ Inapplicable

                                                 Fangda Technology Building, Kejinan 12th Avenue, High-tech Zone, Hi-tech
Registered address
                                                 Park South Zone, Nanshan District, Shenzhen, PR China.

Post code                                        518057

                                                 39th Floor, Building T1, Fangda Town, No.2, Longzhu 4th Road, Nanshan
Office address
                                                 District, Shenzhen

Post code                                        518055



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Website                                             http://www.fangda.com

Email                                               fd@fangda.com

Enquiry date on specific websites for provisional
                                                    Friday, March 26, 2021
announcement disclosure (if any)

Website where specific websites for provisional
                                                    http://www.cninfo.com.cn
announcement disclosure are listed (if any)


2. Information disclosure and inquiring

Changes to the information disclosure and inquiring place
□ Applicable √ Inapplicable
Please refer to the 2020 annual report for the newspapers and websites where the Company’s information is disclosed. The inquiry
address of the interim report has remained unchanged during the report period.


4. Financial Highlight

Whether the Company needs to make retroactive adjustment or restatement of financial data of previous years
√ Yes □ No
Retroactive adjustment or restatement
Consolidation of entities under common control

                                                                                                                 Year-on-year change
                                                                               Same period last year
                                              This report period                                                        (%)

                                                                      Before adjustment     After adjustment      After adjustment

Turnover (yuan)                                   1,568,778,834.98      1,251,608,064.42     1,256,258,223.01                 24.88%

Net profit attributable to shareholders of
                                                    111,488,701.33        146,839,884.57       147,784,781.12                 -24.56%
the listed company (yuan)

Net profit attributable to the shareholders
of the listed company and after deducting           97,095,794.95         146,292,847.94       146,292,847.94                 -33.63%
of non-recurring gain/loss (yuan)

Net cash flow generated by business
                                                  -500,924,545.00        -136,985,479.40      -138,927,264.32              -260.57%
operation (yuan)

Basic earnings per share (yuan/share)                          0.10                 0.13                  0.13                -23.08%

Diluted Earnings per share (yuan/share)                        0.10                 0.13                  0.13                -23.08%

Weighted average net income/asset ratio                       2.05%               2.81%                 2.82%                  -0.77%

                                              End of the report                  End of last year                Year-on-year change
                                                     period           Before adjustment     After adjustment      After adjustment

Total asset (yuan)                             11,721,210,311.06       11,866,857,250.39    11,891,460,320.08                  -1.43%

Net profit attributable to the shareholders
                                                 5,503,070,436.51       5,380,857,155.39     5,392,378,856.43                  2.05%
of the listed company (RMB)


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Note: (1) the net profit attributable to the shareholders of the listed company in the reporting period decreased by 24.56% compared
with the same period of last year, mainly due to the change of accounting estimates according to the expected credit loss rate of
accounts receivable and contract assets in the same period of last year, resulting in an increase of RMB80.7396 million in the net
profit in the same period of last year; After deducting the impact, the net profit attributable to the shareholders of the listed company
in the reporting period increased by 66.29% over the same period of last year.


(2) The net cash flow from operating activities in the reporting period decreased by 260.57% compared with the same period of last
year, mainly due to the decrease of cash flow from operating activities compared with the same period of last year due to the
settlement and payment of land value-added tax of RMB349,316,800 yuan in the reporting period of Shenzhen Fangda Town project
of real estate business.


5. Differences in accounting data under domestic and foreign accounting standards

1. Differences in net profits and assets in financial statements disclosed according to the international and
Chinese account standards

□ Applicable √ Inapplicable
There is no difference in net profits and assets in financial statements disclosed according to the international and Chinese account
standards during the report period.


2. Differences in net profits and assets in financial statements disclosed according to the overseas and
Chinese account standards

□ Applicable √ Inapplicable
There is no difference in net profits and assets in financial statements disclosed according to the international and Chinese account
standards during the report period.


6. Accidental gain/loss item and amount

√ Applicable □ Inapplicable
                                                                                                                                In RMB

                                Item                                             Amount                            Notes

Non-current asset disposal gain/loss (including the write-off part
                                                                                     -2,027,304.03
for which assets impairment provision is made)

Subsidies accounted into the current income account (except the
government subsidy closely related to the enterprise’s business                      3,563,846.25
and based on unified national standard quota)

Net gain between the beginning and merger day of subsidiaries
                                                                                          17,512.89
generated by merger of companies under common control

Gain/loss from change of fair value of transactional financial
asset and liabilities, and investment gains from disposal of
                                                                                      3,102,080.16
transactional and derivative financial assets and liabilities and
sellable financial assets, other than valid period value instruments


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                                                                               Interim Report 2021 of China Fangda Group Co., Ltd.


related to the Company’s common businesses

Write-back of impairment provision of receivables and contract
                                                                                  14,600,000.00
assets for which impairment test is performed individually

Other non-business income and expenditures other than the above                    -2,279,268.05

Less: Influenced amount of income tax                                               2,384,080.04

     Influenced amount of minority shareholders’ equity
                                                                                      199,880.80
(after-tax)

Total                                                                             14,392,906.38                   --

Explanation statement should be made for accidental gain/loss items defined and accidental gain/loss items defined as regular
gain/loss items according to the Explanation Announcement of Information Disclosure No. 1 - Non-recurring gain/loss mentioned.
□ Applicable √ Inapplicable
No circumstance that should be defined as recurrent profit and loss according to Explanation Announcement of Information
Disclosure No. 1 - Non-recurring gain/loss occurs in the report period.




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                     Chapter 3 Management Discussion and Analysis

1. Major businesses of the Company during the report period

     Headquartered in Nanshan District, Shenzhen, the Company's B shares and A shares were listed on the Main Board of Shenzhen
Stock Exchange in November 1995 and April 1996 respectively. Currently, seven major business subsidiaries of the
Company are national high-tech enterprises with modern production bases in Shanghai, Chengdu, Nanchang, and
Dongguan respectively. Adhering to the green, low-carbon and environmental protection industry, the Company successively
opened up high-end curtain wall, solar photovoltaic (BIPV) curtain wall, PVDF aluminum veneer, rail transit PSD system and other
industries in China in 1992. Over the past 30 years since its establishment, the Company has adhered to the tenet of science and
technology and innovation as the source, forged Fangda craftsman spirit in the pursuit of excellent quality, and built Fangda smart
curtain wall, Fangda PVDF aluminum veneer, Fangda rail transit PSD system and other products into a global industry benchmark
brand.
     In the first half of 2021, the environment at home and abroad remained complex with uncertain and unstable factors, especially
the continuous rise of commodity prices, which led to the rise of enterprise costs. COVID-19 was complex and perplexing. It still did
not end, and brought great difficulties and challenges to the production and operation of enterprises. Under the leadership of the
Board of Directors and through the joint efforts of all employees, the Company has basically completed the business objectives for
the first half of 2021. During the reporting period, the Company realized an operating revenue of RMB1,568,778,800 yuan, an
increase of 24.88% over the same period of last year; The net profit attributable to the owner of the parent company was
RMB111,488,700 yuan, a decrease of 24.56% over the same period of last year. The decrease was mainly due to the change of
accounting estimates according to the expected credit loss rate of accounts receivable and contract assets in the same period of last
year, resulting in an increase of RMB80,739,600 yuan in the same period of last year. After deducting the impact, the net profit
attributable to shareholders of the listed company for the reporting period increased by 66.29% over the same period of the previous
year. As of the end of the reporting period, the Company's order reserve was RMB6,264,186,100 (excluding presales of real estate),
an increase of 30.26% from the same period of the previous year, which was 3.99 of the Company's operating revenue in 2021 H1.
Sufficient order reserve provides a strong guarantee for the high-quality development of the Company.
      1. Smart curtain wall system and material industry
     (1) Industry development
      After years of development, especially the rapid development in the 1990s, by the beginning of the 21 st century, China has
become the world's largest curtain wall production and use country. With the further promotion of the national regional coordinated
development strategy, development plans such as new urbanization, coordinated development of Beijing-Tianjin-Hebei, “One Belt
One Road” initiative, Guangdong-Hong Kong-Macao Greater Bay Area construction, Shenzhen Pilot Demonstration Zone, etc., as
well as new materials, new technologies, and new have brought new opportunities for the development of curtain wall industry. With
the development of the industry, the competition in the curtain wall industry will intensify and show a significant
differentiation trend. As the industry leader, the market share will be continuously improved.
     The ninth meeting of the Central Finance and Economics Committee on March 15, 2021 pointed out that carbon peaking and
carbon neutrality should be incorporated into the overall layout of ecological civilization construction, and strive to achieve the goal
of carbon peaking by 2030 and carbon neutrality by 2060. The Ministry of Housing and Urban-Rural Development is also
accelerating the transformation and upgrading of the construction industry and the green development of urban
and rural construction. The construction industry needs to realize energy saving and emission reduction from the source. As one
of the main technical routes of photovoltaic buildings, BIPV has attracted more and more attention from the industry and the market,



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                                                                               Interim Report 2021 of China Fangda Group Co., Ltd.


and photovoltaic curtain walls are expected to be applied to more buildings. The Company began to invest in the research and
development of BIPV products in 2002, and has mastered a number of patented technologies with strong competitiveness. The
products entered the market in 2003.
     (2) Main products and purpose
     Curtain wall is one of the exterior wall enclosure systems of various buildings (structures). It has the characteristics of light
weight, convenient maintenance and beautiful appearance. It is widely used in modern large buildings, high-rise buildings and
industrial buildings. The Company’s main products include smart curtain walls, BIPV curtain walls, LED color-display curtain walls,
PVDF aluminum plate, graphene aluminum plate, and Nano aluminum plate materials.
     (3) Operation mode
     The Company mainly obtains contract orders through bidding. Its business model is the whole industry chain,
from design, process, material procurement, production and processing, to construction, installation and
after-sales service. The main risk of this mode is that it takes a long period of time from the completion of
the order to the completion of the project, and it is highly dependent on raw materials and labor costs. It is
greatly affected by raw material prices, and labor market fluctuations. Different contract orders have different
requirements, imposing high requirements on technology and production management. The main business model has
not changed during the reporting period.
     (4) Market position
     Over the past more than 30 years, the Company has undertaken hundreds of large projects and received the highest award in the
industry China Construction Luban Award and Zhan Tianyou Civil Engineering Award for many times. The Company has also
received nearly 100 provincial and above awards. Fangda Curtain Wall brand has strong technical advantages and competitiveness in
the industry. It has successively participated in the preparation of more than 10 national or industrial standards such as energy
efficiency design standards for public buildings, obtained 496 patents and 13 copyrights, and created 9 new records for Chinese
enterprises. The Company has a Class A qualification for building curtain wall engineering contracting and class
A qualification for building curtain wall engineering design. It is the highest level for curtain wall design
and construction companies in China.
     (5) Main business drive
     1) Relying on the product quality, technical strength and brand influence with core competitiveness, the Company has achieved
remarkable results in market development, and new orders in the reporting period have reached a new high in the same period.
     During the reporting period, the Company successively won the bid or signed contracts for Shenzhen Tianyin building,
Shenzhen Huaqiang Creative Industry Park Phase VI, Shenzhen Kingdee Software Park Phase II, Shenzhen Nanshan District Science
and Technology Center (bid section IV), Shenzhen Dapeng New Area People's Hospital, Shenzhen Kangtai group building, Shenzhen
Hanyuan Mingyuan hospital, Guangzhou Vanke Expo site 6, Guangzhou Hongding Plaza, Dongguan oppo Chang'an center Wuhan
Hubei Radio and television media building, Foshan Shunde Rural Commercial Bank headquarters building, Shanghai xihongqiao
business district xujingzhong plot 29-02 (a) office and commerce, Nanjing Huamao International Center project, Ningbo Hangzhou
Bay Haiquanwan project 1#-3, 2#-1 plot, Wuxi Jingjiang Wanke bid section II, Xi'an Wanda  Xi'an one project plot 2, Xi'an
Qujiang cultural innovation center A large number of smart curtain wall system and material projects, such as bid section I of
Kunming Wujiaba Huanchen Business Center (30# plot), domain house apartment in Melbourne, Australia, and IGLU student
adaptation project in Melbourne, won the bid and signed new orders with a total amount of RMB2,580,154,200 yuan, an increase of
72.09% over the same period of last year. By the end of the reporting period, the Company's order reserve of curtain wall system and
materials industry was RMB4,566,406,400 yuan, an increase of 44.11% over the same period of the previous year, which was 4.16
times the operating revenue of curtain wall system and materials industry in the first half of 2021, laying a solid foundation for the
sustainable and healthy development of the Company. During the reporting period, the Company's curtain wall system and materials
industry realized an operating revenue of RMB109,171,000 yuan, an increase of 29.64% over the same period of last year.
     2) During the reporting period, the Company actively explored high-quality development paths such as technological

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innovation, management reform and intelligent manufacturing, made full use of advanced technologies such as Internet, big data, 5G,
robot and BIM, built intelligent factories and intelligent operation systems, promoted the transformation from "manufacturing" to
"intelligent manufacturing", and achieved a series of results. The Company’s “unit-type porcelain panel curtain wall” technology
with independent intellectual property rights was selected into the 19th “Shenzhen Enterprise Innovation Record”. This invention
patent makes the installation of porcelain panel curtain walls simple and safe and reduces engineering costs. This core technology is
used in the construction curtain wall industry. China is at the leading level, and promotes the construction curtain wall industry to
continue to advance in the direction of new fabricated curtain walls. The four curtain wall projects of Shenzhen Qianhai International
Conference Center, Shenzhen Guanze Financial Center, Shenzhen Bay Science and Technology Innovation Center, and Shenzhen
Baoan Binhai Cultural Park Haifu Ecological Building undertaken by the Company won the "2020 Shenzhen Decoration Engineering
Golden Peng Award"; Fang Da Jianke General Manager Wei Yuexing was listed in the "2020 Guangdong-Hong Kong-Macao Greater
Bay Area Enterprise Innovation List-Innovative Outstanding Persons List".
      2. Rail transport screen door business
      (1) Industry development
      On February 24, 2021, the Central Committee of the Communist Party of China and the State Council issued the "National
Comprehensive Three-dimensional Transportation Network Planning Outline" (hereinafter referred to as the "Outline"), which is the
first time to determine the national medium and long-term transportation network planning and construction requirements. The
"Outline" pointed out that to promote the integrated development of transportation within the urban agglomeration.
Build a convenient and efficient intercity transportation network, accelerate the networking of urban agglomeration rail transit,
improve the urban agglomeration expressway network, strengthen the smooth connection between roads and tracks in urban junction
areas, and basically realize the two-hour traffic circle within the urban agglomeration. According to statistics from the China Urban
Rail Transit Association, as of June 30, 2021 , a total of 49 cities in mainland China have opened 8,448.67 kilometers of urban rail
transit operating lines. In the first half of 2021, Luoyang, Jiaxing, Shaoxing and Nanping will be added as four urban rail transit
operation cities, and another 14 cities will have new lines or sections opened for operation. In the first half of 2021, a total of 478.97
km of new urban rail transit lines were added, an increase of 164% over 181.42 km in the same period last year; A total of 18 new
operation lines are added, including 4 new extension sections or rear access sections. It is expected that in the second half of 2021,
one new urban rail transit operation city will be added, with a new operation line length of about 700 km. Urban rail transit is an
important aspect of urban construction and is expected to maintain a rapid development trend.
      (2) Main products and purpose
      Metro screen door is a system installed on the side edge of the subway platform near the track to separate
the platform area from the track area. It has the functions of safety, energy saving and environmental protection.
Metro PSD system is composed of signal, software, DCU, transmission system, gantry crane, door body and other
components. Since 1999, the Company has taken the lead in successfully developing Metro PSD system in China. It is one of the
few enterprises in the industry that have passed the international railway iris system certification.
      (3) Operation mode
      The Company has built a complete industry chain that integrates R&D, designing, manufacturing, engineering
and technical services. The Company obtains contract orders through bidding, carries out design, process treatment,
procurement of raw materials, production and installation, and provides technical maintenance services according
to the orders. In terms of quality assurance, the Company has passed ISO9001, ISO14000 and international railway iris system
certification. The business model has not changed during the reporting period.
      (4) Market position
      As a "pioneer" and leader in the domestic rail transit screen door system industry, after more than 20 years of development, the
Company has successively constructed subway screens in Beijing, Shanghai, Tianjin, Guangzhou, Shenzhen, Nanjing, Shenyang,
Wuhan, Xi'an, Fuzhou, Nanchang and other cities. The door system has a coverage rate of more than 70% in the domestic cities that
have opened subway operations, and the market share steadily ranks first. In addition, the Company's products have been

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                                                                                Interim Report 2021 of China Fangda Group Co., Ltd.


continuously promoted to overseas markets, and many projects have been won in countries and regions along the “Belt and Road”
such as Singapore, India, Malaysia, Thailand, Hong Kong and Taiwan. At present, the Fangda screen door system has been applied in
the rail transit of 42 cities around the world. More than twenty million people use the Fangda screen door system every day. The
Company has become the world's leading manufacturer and supplier of screen door systems in the world.
     (5) Main business drive
      With its competitive advantages in technology, service, brand and market, the Company continued to maintain
a high order reserve during the reporting period. During the reporting period, the Company obtained orders for PSD system
projects such as Mumbai Metro Line 4, Qingdao Metro Line 4 and Nanchang Metro Line 4 phase I, as well as professional technical
maintenance service orders for PSD projects such as Wuhan Metro Line 2, line 3, South extension of line 7, east section of line 11,
Xiamen Metro Line 1, Dongguan Rail Transit Line 2 and Nanjing Metro Line 1. By the end of the reporting period, the order reserve
of the Company's rail transit PSD equipment industry had reached RMB1,697,779,800 yuan, an increase of 3.57% over the same
period of the previous year, and the order reserve was 6.34 times the operating revenue in the first half of 2021. During the reporting
period, the operating revenue of Metro PSD system was RMB267.687 million yuan.
      Thanks to the good reputation of the Company's rail transit PSD project in Singapore, Malaysia, Thailand,
India, Hong Kong, Taipei and other places, the recognition of Fangda PSD system with independent core technology
in the international market has further improved, and the brand influence has continued to improve. During the
reporting period, the Company overcame the impact of overseas epidemic, realized overseas business sales revenue of
RMB50,738,300 yuan, a year-on-year increase of 221.46%, accounting for 18.95% of the sales revenue of the industry, forming a
new pattern of dual cycle development of domestic and international business. In the future, the Company will continue to
make efforts in the overseas market and further expand its business territory in the overseas market. The overseas
business sales revenue of the Company's rail transit PSD system is expected to further increase.
      During the reporting period, the east section and phase II of Shijiazhuang Metro Line 3, Guiyang Metro Line 2 and Jinan Metro
Line R2 with Fangda rail transit PSD system were successfully opened and operated, further increasing the brand influence. With
the end of the free maintenance period of more and more rail transit screen doors, the professional demand for
technical maintenance services of rail transit screen door system continues to grow. During the reporting period,
the Company realized a technical maintenance service revenue of RMB23,973,400 yuan, an increase of 56.96% over the same period
of last year. The Company has obtained the whole industry chain technology of Metro PSD and professional product
supporting services. The added value of technical maintenance services is high, and the business will continue
to grow in the future.
      During the reporting period, the Company was rated as "excellent equipment manufacturer provided by Party A", "advanced
outsourcing unit" and "excellent maintenance unit" by many subway companies. It also received letters of thanks from Xi'an Subway,
Lanzhou Subway and Zhengzhou Subway. During the reporting period, the Company's "platform automatic telescopic pedal"
technology won the 19th "Shenzhen enterprise innovation record" and Fangda Zhichuang won the "2020 Guangdong, Hong Kong
and Macao Great Bay enterprise innovation list - innovation achievement list". The Company has won wide praise in the urban rail
transit industry with high-quality, efficient and professional technical services, fully affirmed the Company's advanced technology
and product quality in the field of urban rail transit PSD equipment.
      3. New energy industry
      The Company has been practicing the concepts of low-carbon, energy-saving, green and environmental
protection. It is one of the earliest companies in China that independently mastered and possessed independent
intellectual property rights to engage in the design, manufacturing and integration of solar photovoltaic systems.
The Company completed China’s first integrated photovoltaic (BIPV) project in 2003. Since 2016, it has completed the distributed
solar photovoltaic power station in Xuanfeng Town, Pingxiang, Jiangxi, and the parking awning (BIPV) of Jiangxi Isuzu Motor Co.,
Ltd. in Nanchang, the grid-connected power generation project such as the roof of the Songshan Lake factory building (BIPV) in
Dongguan and the wall surface of the Nanjing Jiangsu Bank Building (BIPV), realizing the power generation of the building. During

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the reporting period, the clean energy produced by the Company's solar photovoltaic power plants was equivalent
to reducing carbon dioxide emissions by nearly 10,000 tons, contributing to the realization of the Country's
carbon peak and carbon neutral goals.
       4. Real estate
       (1) Changes in the macroeconomic situation and industry policy environment, the status of industry
development and policy situation in the city where the Company's main projects
       In the first half of 2021, the overall operation trend of the real estate market continued at the end of last year, and the central
and local governments intensively issued regulatory policies to stabilize market expectations. China's economy has entered a
high-quality development stage, real estate has changed from quantity to quality, and real estate in first tier
cities and metropolitan cities has developed steadily.
       The main project location of the Company is Shenzhen. Shenzhen is located in the core area of Guangdong,
Hong Kong and Macao. The Company will focus on the development of urban renewal and renovation projects in Shenzhen.
       At present, the remaining 6.50% of Shenzhen Fangda Town project is being gradually liquidated, and the rental rate of
self-owned office building properties of the project has reached 73.74%. Nanchang Fangda Center project is selling rental
products according to the rhythm of project marketing.
       (2) The Company's main business model, business project format, real estate sales in the city where the
main project is located, market position and competitive advantages of listed companies, main risks and
countermeasures
       The Company's real estate business mainly adopts the business model of self-development, partial sales and
partial self-supporting. At present, the Company mainly develops, sells and rents office, commercial and apartment
products. The Company has established a professional team to operate and manage the Company's commercial and
property.
       The Company's real estate projects are in Shenzhen and Nanchang. According to the statistics of World Bank,
in the first half of 2021, the supply area of office buildings in Shenzhen was 309,800 square meters, and the
transaction area was 241,100 square meters. The supply increased year-on-year, and the transaction volume
decreased slightly; According to the statistics of Jiangxi E-House Research Center, in the first half of 2021,
the supply of commercial housing in Nanchang was about 1.84 million square meters, with a filing area of 2.33
million square meters.
       The sales and rental rate of Shenzhen fangdacheng project is fast, which is highly recognized by the Shenzhen
market.
The Company's Fangda Center project is located in Nanchang Honggutan, which has obvious geographical advantages
and good market expectations. However, due to the large inventory of commercial office buildings in Nanchang
and the downward trend of volume and price, the sales has slowed down.
(3) New land reserve projects

                                                                                                             Total land       Equity
  Parcel or                                     Land area     Building area    Obtaining      Interests      price (ten   consideration
                Land location     Purpose             2              2
project name                                       (m )           (m )          method       percentage      thousand     (ten thousand
                                                                                                               yuan)           yuan)

None

(4) Total land reserve

                                                                                                           Remaining building area
       Project/region name              Floor area (10,000 m2)       Total building area (10,000 m2)
                                                                                                                 (10,000 m2)


                                                                                                                                       15
                                                                                                         Interim Report 2021 of China Fangda Group Co., Ltd.


Fangda Town                                3.53                                       21.24                                             0

Nanchang Fangda Center                     1.66                                       6.64                                              0

               Total                       5.19                                       27.88                                             0

(5) Main production development status

                                                                                                                                                   Total                  Accumu
                                                                                                                                     Area                      Estimat
                                                                                                                    Plannin                         area                    lated
                                                                                                                                 complet                       ed total
                                                  Interests                Develop                      Land              g                       complet                   total
City/reg                Land       Project                     Starting               Complet                                        ed in                    investm
             Item                                 percenta                   ment                       area        construc                       ed in                  investm
     ion               location      form                        time                 ion rate               2
                                                                                                                                     this                      ent (in
                                                     ge                    progress                     (m )        tion area                         this                 ent (in
                                                                                                                                     phase                    RMB10,
                                                                                                                      (m2)                         phase                  RMB10,
                                                                                                                                     (m2)                       000)
                                                                                                                                                    (m2)                    000)

Shenzhe
                       No.2        Office
n                                                              May
            Fangda Longzh commer                   100.00                              100.00 35,397. 212,400                                    217,763
Nansha                   th
                                                               1st,        100%                                                  0                             258,500 283,600
            Town       u4          cial                   %                                      % 60               .00                          .69
n                                                              2014
                       Road        complex
District

                       No.1516
Honggu
                       Ganjian
tan New
            Fangda g North Comme                   100.00 1 May                        100.00 16,608. 66,432.                                    65,376.                   66,992.
District,                                                                  100%                                                  0                              67,000
            Center     Avenue rcial                       % 2018                                 % 55               61                           94                               35
Nancha
                       Fangda
ng
                       Center

(6) Main project sales

                                                                                                                              Amount
                                                                                                                                 of                                       Settleme
                                                                                                                 Pre-sale                                    Settleme
                                                                                             Cumulati                         pre-sale Cumulati                              nt
                                                                                                                  (sales)                                    nt area in
                                                     Interests                                     ve                         (sales) in           ve                     amount
City/regi                   Land      Project                         Building Sellable                           area in                                       the
              Item                                   percenta                                 pre-sale                           the         settleme                      in this
     on                 location          form                        area (m2) area (m2)                          this                                       current
                                                          ge                                     (sales)                       current           nt area                   period
                                                                                                         2
                                                                                                                  period                              2
                                                                                                                                                              period
                                                                                             area (m )                         period             (m )                    (RMB10
                                                                                                                   (m2)                                        (m2)
                                                                                                                              (RMB10                                       ,000)
                                                                                                                                ,000)

Shenzhe                              Office
                        No.2
n           Fangda                   commerc                                   93,086.2 87,032.9                                             87,032.9
                        Longzhu                      100.00% 212,400                                             652.08       3,745.58                       652.08       3,745.58
Nanshan Town             th
                                     ial                                       5             3                                               3
                        4 Road
District                             complex

Honggut                 No.1516
an New                  Ganjiang
            Fangda                   Commer                           65,376.9 32,354.4
District,               North                        100.00%                                 6067.49 1681.73                  2,177.08 5163.51 5163.51                    6,885.41
            Center                   cial                             4        4
Nanchan                 Avenue
g                       Fangda


                                                                                                                                                                                     16
                                                                                    Interim Report 2021 of China Fangda Group Co., Ltd.


                      Center

(7) Main project lease

                                                                    Interests      Leasable area             Cumulative       Average lease
       Item           Land location          Project form                                   2                             2
                                                                   percentage             (m )           leased area (m )         ratio

Shenzhen Fangda Shenzhen
                                        Office building                 100.00% 72,517.71               53,474.58                     73.74%
Town                Nanshan District

Shenzhen Fangda Shenzhen
                                        Commercial shop                 100.00% 22,775.52               22,652.59                     99.46%
Town                Nanshan District

Jiangxi Nanchang
                    Nanchang,           Plant and office
Science and                                                             100.00% 17,517.20               17,517.20                   100.00%
                    Jiangxi Province building
Technology Park

                    Shenzhen
Fangda Building                         Office building                 100.00% 16,739.02               11,740.08                     70.14%
                    Nanshan District

(8) First-level development of land
□ Applicable √ Inapplicable
(9) Financing source

                          Ending financing          Financing cost                Term structure (monetary unit: RMB10,000)
   Financing source            balance (in         range / average
                                                                          Within 1 year          1-2 years        2-3 years     Over 3 years
                            RMB10,000)              financing cost

                                                 During the same
                                                 period, the
                                                 benchmark interest
Bank loan                          156,525.00 rate of the loan was              9,800.00           11,750.00        15,675.00     119,300.00
                                                 adjusted at the
                                                 agreed rate to
                                                 5.415%

         Total                     156,525.00                                   9,800.00           11,750.00        15,675.00     119,300.00

(10) Development strategy and operation plan in next year
     It is expected that the market regulation of the real estate market will remain tight in 2021, the differentiation of different cities
will continue, and the transactions of the first tier and some second tier markets are expected to keep increasing. The Company is
still optimistic about the future development of real estate in core cities and core areas. In the future, the
Company will continue to expand the brand effect, deepen the product types, deepen the local market, and
effectively improve the Company's operating performance.
     In 2021 H2, the main task of the Company's real estate sector is to realize the sales of Shenzhen Fangda Town project, and focus
on promoting the sales and leasing of Nanchang Fangda Town center project.
     In 2021, the Company will actively promote the application of Fangda Bangshen project and Henggang Dakang project
according to the latest policies of Shenzhen.
(11) Bank mortgage loan guarantee provided for commercial housing purchasers
√ Applicable □ Inapplicable
As of June 30, 2021, the balance of the Company's guarantee for commercial housing offenders due to bank mortgage loans was


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                                                                               Interim Report 2021 of China Fangda Group Co., Ltd.


RMB157,862,600.
(12) Co-investment by directors, senior management and supervisors and listed company
□ Applicable √ Inapplicable


II. Core Competitiveness Analysis

     (1) Smart curtain wall system and material
     1. Expertise and brand competitiveness
     As the world’s top smart curtain wall system supplier and service provider, the Company has independently developed and
mastered core technologies. The average annual R&D and innovation investment is about 5% of sales revenue. It has been selected as
one of the “Top 500 Chinese Listed Companies Innovation Index” for three years. In the same industry across the country,
the Company is the earliest to establish R&D institutions such as corporate postdoctoral workstations, engineering
technology centers, and curtain wall research and design institutes. Founded 30 years ago, it has undertaken thousands
of major curtain wall system projects in more than 100 countries and regions. For example, in 2020, it undertook the Shenzhen
Special Economic Zone 40th Anniversary Celebration Conference venue-Shenzhen Qianhai International Conference Center’s smart
curtain wall project, 2018 General Secretary Xi Jinping visited Shenzhen Museum of Contemporary Art and Urban Planning
Exhibition Hall and Vanke Qianhai Corporate Mansion’s curtain wall system, the curtain wall system of the Xiamen International
Conference Center, the venue of the 2017 Xiamen BRICS Summit, the 2014 APEC Summit, the curtain wall system of the 2017
“One Belt One Road” Beijing Yanqi Lake International Conference Capital, the main venue of the International Cooperation
Summit Forum, has won wide acclaim from all walks of life. The industry and target market of the Company have high
requirements for the performance of participating enterprises which has formed certain thresholds. Especially
in the super high-rise buildings, large public buildings and special-shaped external maintenance structures,
the Company has rich experience in project implementation. It has established business contacts and cooperation
with many large real estate development companies. The Company has a high reputation and strong market
competitiveness.
     The Company has created many firsts in the industry and is one of the high-end preferred brands in the Chinese
smart curtain wall system materials industry. So far, four subsidiaries including Shenzhen Fangda Construction
Technology Group Co., Ltd., Dongguan Fangda New Materials Co., Ltd., Chengdu Fangda Construction Technology Co.,
Ltd., Shanghai Fangda Zhijian Technology Co., Ltd., Fangda New Materials (Jiangxi) Co., Ltd. And Shenzhen Yunzhu
Industrial Co., Ltd. have been recognized as hi-tech companies. The "FANGDA" trademark was recognized as a
well-known trademark in China, and the "FANGDA" brand was awarded "International Reputation Brand", "Shenzhen Time-honored
Brand", and "Shenzhen Famous Brand".
     2. Location advantage
     2021 is the first year of the "14th Five-Year Plan". Shenzhen will vigorously promote the construction of the Guangdong-Hong
Kong-Macao Greater Bay Area and the Shenzhen Pilot Demonstration Zone "Dual Zone", implement comprehensive reform pilots in
Shenzhen, and the implementation of the plan will directly stimulate the construction of large public buildings, and There is a large
market demand for building curtain walls. Since its establishment in Shekou, Shenzhen in 1991, the Company has been based in
Shenzhen for 30 years. It has been rated as "Guangdong Province Contract-abiding and Credit-Reliable Enterprise Company",
"Guangdong Province Top 500 Manufacturing Enterprises", "Shenzhen Top 500 Enterprises", and Shenzhen Special Zone 40
Anniversary "50 Most Potential Listed Companies". The Company will continue to take advantage of the industry's
regional leadership, grasp the policy dividend, and follow the national development strategy to promote the
Company's rapid development.
     3. Focusing on the high-end market to edge out competitors
     In the fierce market competition, the Company accurately positions the market in the field of smart


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                                                                                 Interim Report 2021 of China Fangda Group Co., Ltd.


energy-saving curtain wall systems with high requirements for technology, service and management, and focuses
its resources on high-end curtain wall projects. Many of the curtain wall projects undertaken won the national "Luban
Award", "Zhan Tianyou Civil Engineering Award", "National Quality Engineering Award", "China Construction Engineering
Decoration Award", awards, and Won the title of “Top Ten Most Competitive in China's Curtain Wall Industry”. The Company has
built a leading brand and created a clear edge in the high-end curtain wall market.
     4. Well-developed industry base landscape
     In order for the Company to better serve the market and meet the growing demand for orders, after years
of accumulation and continuous investment in hardware facilities, the Company's curtain wall system and material
industry has been established nationwide with Shenzhen as its headquarters and Shanghai, Chengdu, Nanchang, and
Dongguan as production bases, among which Dongguan Songshan Lake Base and Nanchang Base are one of the largest
and most modern curtain wall system and material production bases in China and even the world. The Company's
production base continues to increase digital and intelligent construction, introduces intelligent equipment,
and uses Internet technology to track the Company's products and continuously improve efficiency. The layout
of the production base provides an important guarantee for improving the market share and comprehensive
competitiveness.
     The Company's curtain wall system and material industry integrates R&D, design, production, project
management and construction, with complete industrial supporting facilities, and has strong comprehensive
strength in technology, cost advantages, quality and service.
     5. Talent
     The Company always adheres to the "people-oriented" talent concept, actively introduces and trains all kinds of professional
technology and management talents, and is committed to building an efficient management and operation team. After years of
development, the Company has an experienced senior management team and middle-level managers with strong execution
ability, as well as a complete talent training system and talent reserve. This year, the Company continuously
optimized the effective incentive and assessment system, implemented quantitative management, built a platform
for industry university research integration with colleges and universities and scientific research institutions,
promoted the cooperation between colleges and enterprises and the combination of industry and university, promoted
the effective docking of talent cultivation and industrial demand, and ensured that the Company's scientific
research strength in the field of smart curtain wall was at the leading level in the industry.
      (2) Rail transport equipment business
     1. Expertise competitiveness
     Through continued independent innovation, the Company has developed the global leading metro screen door system with full
intellectual property right and broken the monopoly of overseas competitors. The Company has also compiled the Rail Transport
Station Screen Door Standard, which is the first of its kind in China. The standard was implemented as a national standard on March
1, 2007. As the first standard in the industry in China, the standard has played a key role in guiding the development
of China’s rail transport screen door industry and enabled the Company a dominant lead in the industry. In 2019,
following the editor-in-chief of the Urban Rail Transit Platform Screen Door, the Company once again participated in the preparation
of the Urban Rail Transit Energy Consumption and Emission Index Evaluation Method (GB / T 37420-2019) officially implemented
it on December 1, 2019, highlighting the Company's technical strength and industry leader status in the field of urban rail transit.
Fangda Zhichuang Technology Co., Ltd., a subsidiary of the Company engaged in metro platform screen door system industry of rail
transit, is a state-level high-tech enterprise. During the reporting period, it was awarded the "2020 Guangdong Hong Kong Macao
Great Bay District Enterprise Innovation Power List - Innovation Achievement List".
     2. Brand competitiveness
     Rail transit platform screen door is related to people's daily transportation, so the requirements for product safety, technology,
quality and service ability are particularly high. In 1999, the Company began to take the lead in developing rail transit platform



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                                                                                Interim Report 2021 of China Fangda Group Co., Ltd.


screen door technology in China, accumulated rich experience, had the first mover advantage, and gradually grew into an excellent
brand enterprise in the industry. Up to now, the Company has undertaken the construction projects of track screen doors in 42 cities
and regions at home and abroad, including Shenzhen, Shanghai, Guangzhou, Wuhan, Hong Kong, Singapore, Kuala Lumpur,
Malaysia, Noida, India and Bangkok, Thailand. The Fangda subway screen door system has grasped a leading market share
and established incomparable brand influence thanks to its patents, standard and maintenance services. The Company
has become a leading railway screen door supplier in the world. During the reporting period, the Company received 10
collective and individual honorary awards and 3 thank-you letters from urban rail transit construction units such as Shenzhen,
Xiamen, Hohhot, Wuhan, Hangzhou, Nanchang, Nanning, Xi'an, Lanzhou and Zhengzhou.
      3. Industry chain advantage
      As China's first enterprise to enter the subway platform screen door, the Company has an overall solution industry chain of rail
transit platform screen door integrating R & D, design, manufacturing, engineering construction and technical services. With
years of accumulated reputation, leading technical services and independent intellectual property products, the Company has won the
favor of the domestic and foreign rail transit platform screen door market, and the subway platform screen door of the Company has
been widely used in China. The coverage rate of the cities with metro operation has reached more than 70%. With many domestic
metro platform screen door systems entering the maintenance period, the Company actively expands the industrial
chain and takes the lead in developing Metro maintenance business in China. The Company has a natural advantage
in this high-end service industry. Our screen door system are independently developed by us, thus enabling us
to provide prompt, overall, effective and standard maintenance services for our customers. With more and more
metro operation, the performance contribution of the business will continue to improve.
      (3) New energy industry
     The Company's new energy industry mainly includes the development of new energy saving technologies such as solar
photovoltaic application and photovoltaic building integration (BIPV). With more than ten years' experience in developing solar
energy PV power generating curtain wall technology, the Company is the earliest company that masters the intelligent property right
in the designing, production and integration of solar energy PV curtain wall systems and is a pioneer in the application of PV curtain
wall technology.
      Distributed solar power PV power generation is closely related to the Company's curtain wall business. Most
distributed solar power PV systems are closely related to construction. Moreover, the Company has nearly 20 years'
experience in electrical product integration. The Company also has more than 30 years’ experience in construction
management and has the level-1 construction curtain wall engineering qualification and electrical installation engineering
qualification.
      (4) Real Estate
      1. The Company is located in the core area of Guangdong, Hong Kong and Macao, focusing on the development of urban
renewal projects in Shenzhen. Benefiting from the dividend of Shenzhen's rapid economic development, it is expected
that the Company's real estate business will contribute profits to the Company in the future.
      2. Although the Company is a later comer in the industry, the Shenzhen Fangda Town project was quickly recognized by the
market and the sales rate was faster. The Company's subordinate enterprises have been rated as "Shenzhen real estate development
industry brand value enterprise" by Shenzhen Real Estate Industry Association for three consecutive years and "Shenzhen real estate
development industry development potential enterprise" for two consecutive years.


III. Core business analysis

See I. Major businesses of the Company during the Report Period
Year-on-year changes in major financial data
                                                                                                                               In RMB


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                                                                             Interim Report 2021 of China Fangda Group Co., Ltd.


                         This report period      Same period last year     YOY change (%)                    Reason

Turnover                     1,568,778,834.98           1,256,258,223.01           24.88%

Operating cost               1,208,641,803.18             972,247,913.86           24.31%

Sales expense                   25,434,914.81              21,243,542.31           19.73%

Administrative
                                69,502,453.93              63,196,975.88            9.98%
expense

Financial expenses              46,837,312.30              44,882,137.66            4.36%

                                                                                            Main due to decrease in profit of this
Income tax expenses             13,936,493.66              22,259,131.92          -37.39%
                                                                                            period

                                                                                            Mainly due to increased investment
R&D investment                  78,645,594.86              52,496,161.25           49.81%
                                                                                            in research and development

                                                                                            Mainly due to the decrease of cash
                                                                                            flow from operating activities
                                                                                            compared with the same period of
Cash flow generated
                                                                                            last year due to the settlement and
by business                   -500,924,545.00            -138,927,264.32         -260.57%
                                                                                            payment of land value-added tax of
operations, net
                                                                                            RMB349,316,800 yuan in the year of
                                                                                            Shenzhen Fangda Town project of
                                                                                            real estate business.

                                                                                            It is mainly due to the net
Cash flow generated
                                                                                            expenditure of financial investment
by investment                 -120,811,183.94             -60,368,786.99         -100.12%
                                                                                            and other businesses in the current
activities, net
                                                                                            period

Net cash flow
                                                                                            Mainly due to increase in current
generated by                  181,319,639.10               80,832,186.57          124.32%
                                                                                            period bank borrowings
financing activities

Net increase in cash                                                                        Mainly due to net cash outflow from
                              -441,087,443.61            -117,179,609.78         -276.42%
and cash equivalents                                                                        operating activities

                                                                                            It is mainly due to the increase of
Taxes and
                                35,853,693.88               7,589,822.75          372.39% land value-added tax caused by the
surcharges
                                                                                            increase of real estate sales revenue

Credit impairment                                                                           Mainly due to changes in the
                              19,853,416.06                54,670,793.32          -63.69%
("-" for loss)                                                                              accounting estimates of the expected

Investment                                                                                  credit loss rate in the same period

impairment loss ("-"            3,466,913.89               20,219,822.04          -82.85% last year
for loss)

Major changes in profit composition or sources during the report period
□ Applicable √ Inapplicable
The profit composition or sources of the Company have remained largely unchanged during the report period.
Turnover composition

                                                                                                                                    21
                                                                                Interim Report 2021 of China Fangda Group Co., Ltd.


                                                                                                                              In RMB

                                   This report period                         Same period last year

                                                Proportion in                                 Proportion in       YOY change (%)
                             Amount                                        Amount
                                             operating costs (%)                           operating costs (%)

Total turnover            1,568,778,834.98                100.00%     1,256,258,223.01                 100.00%               24.88%

Industry

Construction and
                          1,097,171,007.07                69.94%        846,349,343.92                  67.37%               29.64%
decor industry

Railroad industry           267,687,038.55                17.06%        333,462,675.90                  26.54%               -19.73%

Real estate                 188,235,871.36                12.00%           58,349,363.38                  4.64%             222.60%

New energy industry           8,323,350.81                 0.53%            9,727,737.59                  0.77%              -14.44%

Others                        7,361,567.19                 0.47%            8,369,102.22                  0.67%              -12.04%

Product

Curtain wall system
                          1,097,171,007.07                69.94%        846,349,343.92                  67.37%               29.64%
and materials

Subway screen door
                            267,687,038.55                17.06%        333,462,675.90                  26.54%               -19.73%
and service

Real estate sales           188,235,871.36                12.00%           58,349,363.38                  4.64%             222.60%

PV power generation
                              8,323,350.81                 0.53%            9,727,737.59                  0.77%              -14.44%
products

Others                        7,361,567.19                 0.47%            8,369,102.22                  0.67%              -12.04%

District

In China                  1,465,806,008.64                93.44%      1,199,564,108.80                  95.49%               22.19%

Out of China                102,972,826.34                 6.56%           56,694,114.21                  4.51%              81.63%

Industries, products or districts that take more than 10% of the Company’s business turnover or profit
√ Applicable □ Inapplicable
                                                                                                                              In RMB

                                                                               Year-on-year       Year-on-year        Year-on-year
                       Turnover         Operating cost      Gross margin         change in            change in      change in gross
                                                                             operating revenue operating costs           margin

Industry

Construction and
                    1,097,171,007.07    940,521,896.72              14.28%            29.64%               33.74%             -2.63%
decor industry

Railroad industry     267,687,038.55    188,146,839.14              29.71%            -19.73%              -22.72%             2.72%

Real estate           188,235,871.36      76,033,488.56             59.61%           222.60%              249.01%             -3.06%

Product



                                                                                                                                       22
                                                                                    Interim Report 2021 of China Fangda Group Co., Ltd.


Curtain wall
system and           1,097,171,007.07      940,521,896.72                14.28%              29.64%            33.74%           -2.63%
materials

Subway screen
                       267,687,038.55      188,146,839.14                29.71%              -19.73%           -22.72%           2.72%
door and service

Real estate sales      188,235,871.36       76,033,488.56                59.61%              222.60%           249.01%          -3.06%

District

In China             1,465,806,008.64 1,124,093,067.67                   23.31%              22.19%            20.28%            1.22%

Main business statistics adjusted in the recent one year with the statistics criteria adjusted in the report period
□ Applicable √ Inapplicable
Explanation for a year-on-year change of over 30%
√ Applicable □ Inapplicable
The operating revenue of curtain wall system and materials industry of the Company increased by 29.64% and the operating cost
increased by 33.74% compared with the previous year, mainly due to the substantial increase in the revenue of curtain wall system
and materials industry compared with the previous year with the gradual stability of domestic epidemic situation and the continuous
growth of orders; the operating income of the real estate industry increased by 222.60% and the operating cost increased by 249.01%
over the previous year, mainly due to the substantial increase in real estate sales of Shenzhen Fangda Town project and Nanchang
Fangda Center project.


IV. Non-core business analysis

√ Applicable □ Inapplicable
                                                                                                                                In RMB

                               Amount                Profit percentage                Reason                    Whether continuous

Investment income                    -532,743.54                  -0.41%                                  No

Gain/loss caused by
changes in fair                       172,829.74                  0.13%                                   No
value

                                                                           Provision for impairment of
Assets impairment                 3,466,913.89                    2.68%                                   No
                                                                           contract assets

Non-operating
                                    1,201,106.46                  0.93%                                   No
revenue

Non-business
                                    3,480,374.51                  2.70% Mainly charity donation           No
expenses

                                                                           It is used to offset the bad
Credit impairment                                                          debt reserves of accounts
                                 19,853,416.06                   15.38%                                   No
loss                                                                       receivable and other
                                                                           receivables




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V. Assets and Liabilities

1. Major changes in assets composition

                                                                                                                    In RMB

                        End of the report period                   End of last year              Change        Notes

                       Amount           Proportion in        Amount             Proportion in     (% )

                                         total assets                            total assets

Monetary            1,246,131,160.65           10.63%      1,463,974,162.44            12.31%      -1.68%
capital

Account                                                     616,952,136.19               5.19%     -1.38%
                     446,412,912.08                3.81%
receivable

Contract assets     1,662,933,014.05           14.19%      1,433,599,583.48            12.06%      2.13%

Inventory            774,694,262.15                6.61%    837,831,790.88               7.05%     -0.44%

Investment real     5,646,194,098.44           48.17%      5,634,648,416.52            47.38%      0.79%
estate

Long-term             55,449,484.30                0.47%     55,902,377.95               0.47%     0.00%
share equity
investment

Fixed assets         566,440,865.19                4.83%    483,217,323.75               4.06%     0.77%

Construction in       98,594,455.15                0.84%    168,626,803.01               1.42%     -0.58%
process

Use right assets      25,764,982.77                0.22%                                 0.00%     0.22%

Short-term          1,174,631,199.75           10.02%      1,048,250,327.62              8.82%     1.20%
loans

Contract             166,915,485.03                1.42%    265,487,113.12               2.23%     -0.81%
liabilities

Long-term           1,484,161,462.35           12.66%      1,099,411,462.35              9.25%     3.41%
loans

Lease liabilities     24,619,179.70                0.21%                                 0.00%     0.21%


2. Major foreign assets

□ Applicable √ Inapplicable


3. Assets and liabilities measured at fair value

√ Applicable □ Inapplicable
                                                                                                                    In RMB




                                                                                                                         24
                                                                                  Interim Report 2021 of China Fangda Group Co., Ltd.


                                                Accumulative
                                                 changes in
                                  Gain/loss
                                                 fair value       Impairment      Amount
                  Opening         caused by                                                     Amount sold       Other         Closing
     Item                                        accounting       provided in   purchased in
                   amount         changes in                                                    in the period    change          amount
                                                  into the        the period     the period
                                  fair value
                                                  income
                                                  account

Financial
assets

1.
Transactional
financial
assets                                                                                                                         132,493,708
                14,382,896.04
(excluding                                                                                                                             .09
derivative
financial
assets)

2. Derivative
                                                                                                                               5,096,490.2
financial        6,974,448.22
                                                                                                                                          7
assets

3. Investment
                                                -18,013,222.2                                                                  17,398,629.
in other        17,628,307.59     -229,678.59
                                                              0                                                                           00
equity tools

                                                -18,013,222.2                                                                  154,988,827
Subtotal        38,985,651.85     -229,678.59
                                                              0                                                                        .36

Investment      5,628,291,448                   13,687,541.5                                                    -3,540,980. 5,635,833,5
                                                                                11,083,112.99
real estate                 .40                               3                                                           00         81.39

Receivable                                                                                                                     23,798,104.
                10,727,129.28
financing                                                                                                                                 10

Other
non-current                                                                                                                    5,198,015.9
                 5,025,186.16      172,829.74
financial                                                                                                                                 0
assets

                5,683,029,415                                                                                   -3,540,980. 5,819,818,5
Total                              -56,848.85 -4,325,680.67                     11,083,112.99
                            .69                                                                                           00         28.75

Financial
                  915,234.93                                                                                                          0.00
liabilities

Other change
Other changes in investment real estate are RMB-3,540,980.00 yuan, which is due to changes in the use of some real estate.
Major changes in the assets measurement property of the Company in the report period
□ Yes √ No


                                                                                                                                           25
                                                                                             Interim Report 2021 of China Fangda Group Co., Ltd.


4. Right restriction of assets at the end of the period

                        Item                             Closing book value (RMB)                                Reason
Monetary capital                                                658,832,074.53                 Margin, pledge and judicial frozen
                                                                                                               deposit, etc
Inventory                                                        87,429,489.76                  Credit Mortgage, Mortgage Loan
Fixed assets                                                    113,877,697.76                  Credit Mortgage, Mortgage Loan
Intangible assets                                                18,869,282.56                            Loan by pledge
Account receivable                                               42,595,672.31                            Loan by pledge
Investment real estate                                          4,161,289,402.27                          Loan by pledge
100% stake in Fangda Property                                   200,000,000.00                            Loan by pledge
Development held by the Company
Total                                                           5,282,893,619.19




VI. Investment

1. General situation

√ Applicable □ Inapplicable

     Investment (yuan) in the report period             Investment (yuan) in the previous period                                Change

                   125,388,100.00                                          0.00                                               Inapplicable




2. Major equity investment in the report period

√ Applicable □ Inapplicable
                                                                                                                                                      In RMB

                                                                                             Progre
                                                                                                                  Current
Investe               Method                Shareh                        Term               ss as of                         Whether                Disclos
            Main                Invest                                                                  Estima investm                    Disclosu
     d                   of                 olding Capital                  of     Type of     the                            litigatio                   ure
           busines               ment                           Partner                                   te        ent                   re date
compan                 invest               percent source                invest product balanc                                 n is                 source
               s                amount                                                                  return     profit                 (if any)
     y                  ment                 age                           ment              e sheet                          involved               (if any)
                                                                                                                  and loss
                                                                                              date

           Technic                                                                 Buildin 100%                                                      Announ
Shenzh al                                                                          g         equity                                                  cement
en         services                                                                inspecti has                                                      on
                                125,38                 Self-o                                                                             Tuesday
Yunzhu ,              Acquisi               100.00              Inappli Long-t on and been                       2,860,01                            Acquisit
                                8,100.0                wned                                               --                  No          , March
Industri inspecti tion                             %            cable     erm      technic transfe                    3.86                           ion of
                                        0              fund                                                                               23, 2021
al Co., on,                                                                        al        rred                                                    Equity
Ltd.       mainten                                                                 service and                                                       and
           ance                                                                    s         control                                                 Related


                                                                                                                                                                26
                                                                         Interim Report 2021 of China Fangda Group Co., Ltd.


         and                                                             has                                      Party
         functio                                                         been                                     Transac
         n                                                               transfe                                  tions by
         transfor                                                        rred to                                  Wholly
         mation                                                          the                                      Owned
         services                                                        Compa                                    Subsidi
         of                                                              ny                                       aries on
         existing                                                                                                 Http//w
         buildin                                                                                                  ww.cnin
         g                                                                                                        fo.com
         external                                                                                                 (http://
         mainten                                                                                                  www.cn
         ance                                                                                                     info.co
         system,                                                                                                  m.cn/)
         as well
         as
         buildin
         g
         waterpr
         oof,
         anti-cor
         rosion
         and
         thermal
         insulati
         on
         busines
         s.

                           125,38
                                                                                        2,860,01
Total         --    --    8,100.0    --      --       --      --    --        --   --               --       --       --
                                                                                            3.86
                                0


3. Major non-equity investment in the report period

□ Applicable √ Inapplicable


4. Financial assets investment

(1) Securities investment

□ Applicable √ Inapplicable
The Company made no investment in securities in the report period




                                                                                                                             27
                                                                                              Interim Report 2021 of China Fangda Group Co., Ltd.


(2) Derivative investment

√ Applicable □ Inapplicable
                                                                                                                                              In RMB10,000

                                                                                                                                           Proporti
                                                                                                                                            on of
                                                                                                                                           closing
                                                                                                                                           investm
Derivati
                                                                                                                    Impairm                  ent       Actual
     ve                                                                        Initial                 Amount                  Closing
                     Related                                                                 Amount                   ent                  amount gain/los
investm Relation                             Initial      Start      End      investm                  sold in                 investm
                     transacti       Type                                                    in this                provisio                in the     s in the
     ent    ship                            amount         date      date       ent                     this                     ent
                          on                                                                 period                  n (if                 closing     report
operator                                                                      amount                   period                  amount
                                                                                                                     any)                    net       period
    name
                                                                                                                                           assets in
                                                                                                                                             the
                                                                                                                                            report
                                                                                                                                            period

Shangha
                                                        Friday,    Wednes
i                                Shanghai
                                                        April      day,                                6,396.6                 1,715.4                 1,399.3
Futures No           No          aluminu 8,112.09                             8,112.09                                                       0.31%
                                                        17,        June 30,                                    1                       8                      0
Exchan                           m
                                                        2020       2021
ge

                                 Forward                Wednes Wednes
                                 foreign     5,803.0 day,          day,        5,803.0                 3,905.6                 2,885.2
Banks      No        No                                                                        987.8                                         0.52%       99.64
                                 exchang               3 July 29, June 30,               3                     1                       2
                                 e                      2020       2021

                                             13,915.                           13,915.                 10,302.                                         1,498.9
Total                                                         --      --                       987.8                           4,600.7       0.83%
                                                   12                                 12                       22                                             4

Capital source                              Self-owned fund

Lawsuit (if any)                            None

Disclosure date of derivative
investment approval by the Board of Wednesday, October 21, 2020, Tuesday, March 23, 2021
Directors (if any)

Disclosure date of derivative
investment approval by the                  None
Shareholders’ Meeting (if any)

                                            The Company's aluminum futures hedging and foreign exchange derivatives trading business
Risk analysis and control measures
                                            are all derivatives investment business. The Company has established and implemented the
for the derivative holding in the
                                            "Derivatives Investment Business Management Measures" and "Commodity Futures
report period (including without
                                            Hedging Business Internal Control and Risk Management System". It has made clear
limitation market, liquidity, credit,
                                            regulations on the approval authority, business management, risk management, information
operation and legal risks)
                                            disclosure and file management of derivatives trading business, which can effectively control

                                                                                                                                                              28
                                                                                        Interim Report 2021 of China Fangda Group Co., Ltd.


                                          the risk of the Company's derivatives holding positions.

Changes in the market price or fair
value of the derivative in the report
period, the analysis of the derivative’
                                        Fair value of derivatives are measured at open prices in the open market
s fair value should disclose the
method used and related assumptions
and parameters.

Material changes in the accounting
policies and rules related to the
                                          None
derivative in the report period
compared to last period

Opinions of independent directors on
the Company’s derivative                 None
investment and risk controlling


VII. Major assets and equity sales

1. Major assets sales

□ Applicable √ Inapplicable
The Company sold no assets in the report period.


2. Major equity sales

√ Applicable □ Inapplicable

                                            The                                                                        Whether
                                          equity               Proporti                                                  it is
                                          contribu              on of                                                  implem
                                           ted by                net                                                    ented
                                            the                 profit                                     Whether accordin
                                          equity               contribu                                      the         g to
                                           to the               ted by                                      equity     schedul                Index
                                                                           Equity               Relation
                                           listed               listed                                     involve e, if it is                 for
                              Price (in                                     sales     Related     ship                            Date of
Counter    Stock    Disposa               compan               Compan                                       d has        not                 informa
                              RMB10,                 Impacts               pricing transacti with the                             disclosu
  part      sold      l day               y from                ies to                                      been       implem                  tion
                                  000)                                     principl     on      counter                              re
                                            the                 equity                                     complet      ented                disclosu
                                                                              e                  party
                                          beginni              investm                                       ely       accordin                 re
                                           ng of               ents as a                                   transferr     g to
                                            the                percenta                                       ed       plan, it
                                          current               ge of                                                  should
                                          period               total net                                               explain
                                           to the               profits                                                  the
                                          selling                                                                      reasons


                                                                                                                                                      29
                                                                                     Interim Report 2021 of China Fangda Group Co., Ltd.


                                          date (in                                                           and the
                                            ten                                                             measure
                                          thousan                                                             s the
                                          d yuan)                                                           Compan
                                                                                                              y has
                                                                                                              taken

CITIC                                                It has no
Securiti                                             significa
es                                                   nt
Investm                                              impact
ent Co.,                                             on the
Ltd.,                                                Compan
Shenzhe                                              y's daily
n Hi                                                 producti
Tech                                                 on and
Venture                                              operatio
Capital                                              n, and
                                                                       The
Co.,                                                 has no
           10.9375                                                     parties                                                  Announ
Ltd.,                                                impact
           %                                                           to the                                                   cement
Shenzhe                                              on the
           equity                                                      transacti                                                on
n                                                    Compan
           of                                                          on shall                                                 Transfer
Qianhai                                              y's
           Fangda                                                      negotiat                             The                 of Part
Pengche                                              current
           Zhichua                                                     e fairly                             implem              of
n                                                    net                                                               Monday
           ng          Friday,                                         and                                  entation            Equity
Investm                                              profit                                                            , May
           Technol May 28,       17,500    447.01                0.00% friendly No        None     Yes      has been            in
ent                                                  (accordi                                                          17,
           ogy Co., 2021                                               based                                complet             Holding
Partners                                             ng to                                                             2021
           Ltd., a                                                     on the                               ed as               Subsidi
hip,                                                 the
           holding                                                     principl                             planned             aries on
Gongqin                                              relevant
           subsidia                                                    e of                                                     Http://w
gcheng                                               provisio
           ry of the                                                   market-                                                  ww.cnin
Longrun                                              ns of the
           Compan                                                      oriented                                                 fo.com.
Spring                                               accounti
           y                                                           transacti                                                cn/
Investm                                              ng
                                                                       on
ent                                                  standard
Partners                                             s, the
hip                                                  parent
(limited                                             compan
partners                                             y
hip),                                                disposes
Shenzhe                                              the
n                                                    long-ter
Jiayuan                                              m
Capital                                              equity
Manage                                               investm


                                                                                                                                          30
                                                                             Interim Report 2021 of China Fangda Group Co., Ltd.


ment                                          ent in
Co.,                                          the
Ltd.,                                         subsidia
Gongqin                                       ry
gcheng                                        without
Huashen                                       losing
g Botai                                       the
Investm                                       control
ent                                           right. In
Partners                                      the
hip                                           consolid
(limited                                      ated
partners                                      financia
hip)                                          l
                                              stateme
                                              nts, the
                                              differen
                                              ce
                                              between
                                              the
                                              disposal
                                              price
                                              and the
                                              share of
                                              net
                                              assets is
                                              included
                                              in the
                                              capital
                                              reserve.


VIII. Analysis of major joint stock companies

√ Applicable □ Inapplicable
Major subsidiaries and joint stock companies affecting more than 10% of the Company’s net profit
                                                                                                                             In RMB

                                  Main        Registered                                                 Operation
  Company          Type                                     Total assets   Net assets    Turnover                      Net profit
                                 business         capital                                                  profit

                              Curtain wall
Fangda                                       500,000,000.
              Subsidiaries    system and                    3,528,351,35 1,196,279,66 981,850,688. 113,151,36 100,323,017.29
Jianke                                       00
                              materials                             6.37          8.86              73         2.90

Fangda                        Subway         105,000,000. 623,367,323. 244,195,448. 267,288,808. 67,670,672
              Subsidiaries                                                                                            66,341,872.74
Zhichuang                     screen door    00                       98            42              51          .69


                                                                                                                                    31
                                                                                Interim Report 2021 of China Fangda Group Co., Ltd.


                                and service

                                Subway
Kechuangyua                                                     47,626,263.8 34,189,237.1 29,915,667.0 29,478,712
               Subsidiaries     screen door    5,000,000.00                                                           25,293,434.12
n                                                                         7            9              2         .04
                                and service

Fangda
                                Property
Property       Subsidiaries                    10,000,000.0 289,056,860. 32,628,043.2 41,446,664.3 16,644,566
                                management                                                                            12,496,112.63
Management                                     0                         36            5              8         .81

Fangda                                         200,000,000. 5,914,578,77 2,463,876,38 87,327,903.8 8,639,619.
               Subsidiaries     Real estate                                                                            6,503,666.38
Property                                       00                      1.20         6.40              7          55

Acquisition and disposal of subsidiaries in the report period
□ Applicable √ Inapplicable


IX. Structural entities controlled by the Company

□ Applicable √ Inapplicable


X. Risks facing the Company and measures

     1. Risks and Countermeasures of macroeconomic uncertainty and policy changes
     The global economy is always faced with many uncertainties. In addition, emergencies such as the new
coronavirus epidemic may also bring unpredictable risks to the overall economy. The main business sectors of
the Company are closely related to the macro-economy and industry policies, and are greatly affected by the overall
macro-economic development. If China's economy develops slowly or fluctuates periodically in the future, the
reduction of fixed asset investment will affect the demand of public building curtain wall industry and rail
transit equipment industry, which will have an adverse impact on the Company's future profitability. In view
of the above risks, the Company will pay close attention to the changes of macro-economy and policy situation
at home and abroad, timely adjust the Company's business strategy, and further enhance its market competitiveness,
operation and management ability, so as to improve its anti risk ability.
     2. Market risks and measures
     As the overall designing and engineering quality continues improving in the domestic construction curtain
wall industry, curtain wall products will become increasingly standard, intensifying the market competition.
In addition, the market concentration of first- and second-tier cities will increase, and regional competition
will become more intense. The Company will continue to adopt a prudent management policy, refined management,
and technological innovations to reduce management costs and accelerate the return of funds. By constantly improving
the scientific and technological content and added value of products, constantly expanding the scale and benefit advantages, build
high barriers to competition and broaden the business moat. While consolidating the domestic market, the Company will step
up the efforts in exploring overseas markets, thus elevating our competitiveness in global markets and improving
our resistance to risks.
     3. Management risks and measures
     In recent years, with the Company's curtain wall and material system industry, rail transit screen door
industry orders increasing year by year and the Company's real estate property sector increased, the Company's
assets, business, personnel and other aspects have expanded significantly, the organizational structure and
management system will tend to Due to the complexity, the Company may face the management risk of industrial


                                                                                                                                     32
                                                                   Interim Report 2021 of China Fangda Group Co., Ltd.


scale expansion. The Company will continue to improve the management mode, integrate business management, optimize
the business flow, seeking to build a high-efficient and solid management team. We will introduce high-quality,
professional technical and management talents in different fields to strengthen the Company's core
competitiveness.
    4. Production and operation risks and measures
    The macro-economy and market demand have added to the fluctuation in prices of main raw materials and labor,
affecting the Company’s profitability and creating additional production and operation risks for the Company.
The Company will make use of raw material futures products to hedge against the risk of large price fluctuations,
actively strengthen the management of technology, process, production and market, and strive to reduce procurement
and manufacturing costs, reduce the loss of raw materials, improve the automation and intelligence of production
equipment, strengthen staff skills training, improve staff labor efficiency, and maintain the sustainable
development of the Company.
    5. Real estate industry risks and countermeasures
    The real estate industry is obviously affected by the country 's macro-control, and the Company needs to
review the situation and further strengthen the forward-looking research on the economic situation, policies
and industry situation, and the capital market, enhance predictive power, improve the control and resilience
of risk factors, and timely adjust business strategies to adapt to the new economic normal and new changes in
the real estate industry. At the same time, the Company will increase its efforts to eliminate the cash and ensure
that the Company continues to maintain stable operation and healthy development by withdrawing cash.




                                                                                                                   33
                                                                      Interim Report 2021 of China Fangda Group Co., Ltd.




                                Chapter IV Corporation Governance

I. Annual and extraordinary shareholder meetings held during the report period

1. Annual shareholder meeting during the report period


                                       Participation of
     Meeting                    Type                              Date          Date of disclosure    Meeting resolution
                                          investors

                                                                                                     The following
                                                                                                     proposals were
                                                                                                     considered and
                                                                                                     adopted: 1. 2020
                                                                                                     work report of the
                                                                                                     Board of Directors;
                                                                                                     2. 2020 work report
                                                                                                     of the Board of
                                                                                                     Supervisors; 3. Full
                                                                                                     text and summary of
                                                                                                     2020 annual report;
                                                                                                     4. 2020 financial
                                                                                                     final accounts report;
                                                                                                     5. 2020 profit
                      Annual
2020 Annual                                                Monday, April 12,   Tuesday, April 13,    distribution plan; 6.
                      shareholders’              25.33%
Shareholder Meeting                                        2021                2021                  Proposal on applying
                      meeting
                                                                                                     for credit and
                                                                                                     providing guarantee
                                                                                                     to banks and other
                                                                                                     financial institutions;
                                                                                                     7. Proposal on hiring
                                                                                                     an audit institution in
                                                                                                     2021; 8. Proposal on
                                                                                                     cancellation of B
                                                                                                     shares repurchased
                                                                                                     in 2020, reduction of
                                                                                                     registered capital
                                                                                                     and amendment of
                                                                                                     the articles of
                                                                                                     association.




                                                                                                                             34
                                                                                Interim Report 2021 of China Fangda Group Co., Ltd.


2. Shareholders of preference shares of which voting right resume convening an extraordinary
shareholders’ meeting

□ Applicable √ Inapplicable


II. Changes in the Directors, Supervisors and Senior Executives

□ Applicable √ Inapplicable
The Company’s Directors, supervisors and senior management have remained unchanged during the report period. For details,
please refer to the 2020 annual report.


III. Profit Distribution and Reserve Capitalization in the Report Period

□ Applicable √ Inapplicable
The Company distributed no cash dividends or bonus shares and has no reserve capitalization plan.


IV. Share incentive schemes, staff shareholding program or other incentive plans

□ Applicable √ Inapplicable
There is no share incentive schemes, staff shareholding program or other incentive plans in the report period




                                                                                                                                35
                                                                                 Interim Report 2021 of China Fangda Group Co., Ltd.




                           V. Environmental and social responsibility

1. Environmental protection

Whether the Company and its subsidiaries are key polluting companies disclosed by the environmental protection authority
□ Yes √ No
Administrative penalties for environmental problems during the reporting period

                                                                                              Impact on the
                                                                                                                      Rectification
    Company or                                                                                production and
                              Reason                Violations        Punishment result                             measures of the
       subsidiary                                                                           operation of listed
                                                                                                                         Company
                                                                                                companies

None                   None                  None                   None                   None                   None

Refer to other environmental information disclosed by key pollutant discharge units
None
Reasons for non-disclosure of other environmental information
During the reporting period, the listed company and its subsidiaries were not key pollutant discharge units
announced by the environmental protection department, and there were no administrative penalties for
environmental problems.


2. Social responsibilities

     As of the disclosure date of this report, the Company's funds for social public welfare undertakings in 2021 totaled RMB 3.222
million. Among them, the Company donated RMB3 million yuan to the education development foundation of Nanchang University
for the construction, transformation and upgrading project of Nanchang University Library. At the same time, the Company actively
responded to the national call to consolidate the achievements of poverty alleviation and help rural revitalization, and donated
RMB100,000 yuan to Nanshan District Charity Society of Shenzhen for poverty alleviation activities in Guangdong Province;
RMB122,000 yuan was invested to build a new plastic runway, parking shed, teaching equipment and improve educational facilities
and equipment in Nanchang Fangda Hope Primary School.
     Over the past 30 years since its establishment, while creating enterprise value, the Company has adhered to its original mission,
actively fulfilled its social responsibility, gave full play to the advantages of enterprise assistance, contributed a lot to the overall
victory of China's anti-poverty campaign in 2020, and demonstrated a high degree of family and country feelings and responsibility.
The Company actively participated in various public welfare activities, involving public welfare, anti SARS,
funding for rural health care, disaster relief, environmental protection, precision poverty alleviation,
prevention and control against COVID-19 and many other aspects. As a socially responsible company, the Company has won
high recognition and praise from all walks of life. It has successively won the "National Advanced Private Enterprise for Targeted
Poverty Alleviation Action of the All-China Federation of Industry and Commerce" and "Advanced Private Enterprise in the Fight
against the COVID-19 Epidemic", "China Outstanding Enterprise in Fulfilling Social Responsibility", "2020 China Top 500
Enterprises for Charity and Public Welfare", "China's Best Employer", Jiangxi Province's "Thousands of Enterprises Helping
Thousands of Villages in Targeted Poverty Alleviation Action Advanced Private Enterprise", "Fighting against the Epidemic and
Jiangxi Merchants in Action" title of the Most Beautiful Enterprise, "Guangdong Province May 1st Labor Medal", "Guangdong
Province's Fight against New Coronary Pneumonia Epidemic "Outstanding Contribution to Private Enterprises" and other honors.


                                                                                                                                      36
                                                                                Interim Report 2021 of China Fangda Group Co., Ltd.


     Based on the educational undertakings related to the future development of the country and the nation, the
Company regards education for poverty alleviation and donation for education as a long-term public welfare
undertaking. "Poverty alleviation must first support education, and financial priority should be given to education." In the past 30
years, the Company has donated 7 Fangda hope schools in old and poor areas such as Jinggangshan, Guangchang, and Xinjian in
Jiangxi, Yan'an in Shaanxi, Bijie in Guizhou, Linzhi in Tibet, and Dapu in Guangdong and have improved the conditions for running
schools in rural areas, provided children with brand-new and modern teaching buildings, and subsidized school expenses for students
in difficulties, helping rural children enjoy better learning and public activity spaces, and allowing children to grow up healthily and
happily.




                                                                                                                                     37
                                                                                Interim Report 2021 of China Fangda Group Co., Ltd.




                                      Chapter VI Significant Events

I. Commitments that have been fulfilled and not fulfilled by actual controller, shareholders,
related parties, acquirers of the Company

□ Applicable √ Inapplicable
There is no commitment that has not been fulfilled by actual controller, shareholders, related parties, acquirers of the Company


II. Non-operating capital use by the controlling shareholder or related parties in the reporting
term

□ Applicable √ Inapplicable
The controlling shareholder and its affiliates occupied no capital for non-operating purpose of the Company during the report period.


III. Incompliant external guarantee

□ Applicable √ Inapplicable
The Company made no incompliant external guarantee in the report period.


IV. Engaging and dismissing of CPA

Whether the interim financial report is audited
□ Yes √ No
The interim report for H1 2015 has not been audited.


V. Statement of the Board on the “non-standard auditors’ report” issued by the CPA on the
current report period

□ Applicable √ Inapplicable


VI. Statement of the Board of Directors on the Non-standard Auditor’s Report for H1 2014

□ Applicable √ Inapplicable


VII. Bankruptcy and capital reorganizing

□ Applicable √ Inapplicable
The Company has no bankruptcy or reorganization events in the report period.


VIII. Lawsuit

Significant lawsuit and arbitration

                                                                                                                                   38
                                                                                      Interim Report 2021 of China Fangda Group Co., Ltd.


□ Applicable √ Inapplicable
The Company has no significant lawsuit or arbitration affair in the report period.
Other lawsuit
√ Applicable □ Inapplicable

                                          Whether                                                   Enforcement
 Basic information                                      Progress of      Litigation (arbitration)                               Index for
                        Amount (in        estimated                                                 of litigation   Date of
    of litigation                                        litigation        hearing results and                                 information
                        RMB10,000)    liabilities are                                               (arbitration) disclosure
    (arbitration)                                       (arbitration)             impact                                       disclosure
                                           formed                                                    judgment

Summary of
matters in which                                                        The case has not been
the subsidiaries as                                                     closed, which has no
the plaintiff fail to                                                   significant impact on the
                            3,794.6 No                  No                                          Inapplicable
meet the disclosure                                                     operation and financial
standards of major                                                      status of the Company in
litigation                                                              the reporting period
(arbitration)

Summary of
matters where the
                                                                        Pending case, on June
Company and its
                                                                        30, 2021, Fangda Real
subsidiaries as
                                                                        Estate drew an estimated
defendants fail to         6,928.69 Yes                 No                                          Inapplicable
                                                                        debt of RMB25,683,700
meet the disclosure
                                                                        according to the most
standards of major
                                                                        likely litigation result.
litigation
(arbitration)


IX. Punishment and rectification

□ Applicable √ Inapplicable
The Company received no penalty and made no correction in the report period.


X. Credibility of the Company, controlling shareholder and actual controller

□ Applicable √ Inapplicable


XI. Material related transactions

1. Related transactions related to routine operation

□ Applicable √ Inapplicable
The Company made no related transaction related to daily operating in the report period.




                                                                                                                                             39
                                                                                 Interim Report 2021 of China Fangda Group Co., Ltd.


2. Related transactions related to assets transactions

□ Applicable √ Inapplicable
The Company made no related transaction of assets or equity requisition and sales in the report period.


3. Related transactions related to joint external investment

□ Applicable √ Inapplicable
The Company made no related transaction of joint external investment in the report period.


4. Related credits and debts

□ Applicable √ Inapplicable
The Company had no related debt in the report period.


5. Transactions with related financial companies and financial companies controlled by the Company

□ Applicable √ Inapplicable
There is no deposit, loan, credit or other financial business between the Company and the related financial company, or between the
financial company controlled by the Company and the related parties.


6. Other major related transactions

□ Applicable √ Inapplicable
The Company has no other significant related transaction in the report period.


XII. Significant contracts and performance

1. Asset entrusting, leasing, contracting

(1) Asset entrusting

□ Applicable √ Inapplicable
The Company made no custody in the report period.


(2) Contracting

□ Applicable √ Inapplicable
The Company made no contract in the report period


(3) Leasing

□ Applicable √ Inapplicable
There is no leasing during the reporting period.


                                                                                                                                  40
                                                                                 Interim Report 2021 of China Fangda Group Co., Ltd.


2. Significant guarantee

√ Applicable □ Inapplicable
                                                                                                                         In RMB10,000

                  External guarantees made by the Company and subsidiaries (exclude those made for subsidiaries)

                                                                                            Counter
                                                       Actual
 Guarantee      Date of    Guarantee                                 Type of    Collateral guarant                 Complete Related
                                       Actual date amount of                                            Term
provided to disclosure      amount                                  guarantee    (if any)    ee (if                d or not     party
                                                      guarantee
                                                                                             any)

   None

                                                  Guarantee provided to subsidiaries

                                                                                            Counter
                                                       Actual
 Guarantee      Date of    Guarantee                                 Type of    Collateral guarant                 Complete Related
                                       Actual date amount of                                            Term
provided to disclosure      amount                                  guarantee    (if any)    ee (if                d or not     party
                                                      guarantee
                                                                                             any)

                                                                                                      since
                                                                   Joint and                          engage of
              Saturday,                Tuesday,
Fangda                                                             several                            contract
              April 18,        50,000 July 14,         33,171.12                None        None                   No         Yes
Jianke                                                             liability                          to 2 years
              2020                     2020
                                                                   guarantee                          upon due
                                                                                                      of debt

                                                                                                      since
                                                                   Joint and                          engage of
              Saturday,                Thursday,
Fangda                                                             several                            contract
              April 18,        40,000 September        16,511.72                None        None                   No         Yes
Jianke                                                             liability                          to 2 years
              2020                     3, 2020
                                                                   guarantee                          upon due
                                                                                                      of debt

                                                                                                      since
                                                                   Joint and                          engage of
              Saturday,                Tuesday,
Fangda                                                             several                            contract
              April 18,        30,000 January 19,                               None        None                   No         Yes
Jianke                                                             liability                          to 2 years
              2020                     2021
                                                                   guarantee                          upon due
                                                                                                      of debt

Fangda
Jianke Co.,                                                                                           since
Ltd.,                                                              Joint and                          engage of
              Saturday,                Wednesday,
Fangda                                                             several                            contract
              April 18,        46,000 March 17,        35,301.89                None        None                   No         Yes
Zhichuang,                                                         liability                          to 2 years
              2020                     2021
Kechuangy                                                          guarantee                          upon due
uan                                                                                                   of debt
Software



                                                                                                                                        41
                                                                         Interim Report 2021 of China Fangda Group Co., Ltd.


                                                                                            since
                                                            Joint and                       engage of
             Saturday,            Tuesday,
Fangda                                                      several                         contract
             April 18,     25,000 September     24,395.62               None       None                  No      Yes
Jianke                                                      liability                       to 2 years
             2020                 22, 2020
                                                            guarantee                       upon due
                                                                                            of debt

                                                                                            since
                                                            Joint and                       engage of
             Saturday,            Friday,
Fangda                                                      several                         contract
             April 18,     30,000 June 12,        20,000                None       None                  No      Yes
Jianke                                                      liability                       to 2 years
             2020                 2020
                                                            guarantee                       upon due
                                                                                            of debt

                                                                                            since
                                                            Joint and                       engage of
             Wednesday,           Friday,
Fangda                                                      several                         contract
             January 30,   15,000 April 10,                             None       None                  No      Yes
Jianke                                                      liability                       to 2 years
             2019                 2020
                                                            guarantee                       upon due
                                                                                            of debt

                                                                                            since
Fangda                                                      Joint and                       engage of
             Wednesday,           Wednesday,
Jianke and                                                  several                         contract
             January 30,   14,000 December       10,108.3               None       None                  No      Yes
Fangda                                                      liability                       to 2 years
             2019                 18, 2019
Zhichuang                                                   guarantee                       upon due
                                                                                            of debt

                                                                                            since
                                                            Joint and                       engage of
             Saturday,            Tuesday,
Fangda                                                      several                         contract
             April 18,     40,000 July 28,       19,416.6               None       None                  No      Yes
Zhichuang                                                   liability                       to 2 years
             2020                 2020
                                                            guarantee                       upon due
                                                                                            of debt

                                                                                            since
                                                            Joint and                       engage of
             Saturday,            Tuesday,
Fangda                                                      several                         contract
             April 18,     20,000 January 19,                           None       None                  No      Yes
Zhichuang                                                   liability                       to 2 years
             2020                 2021
                                                            guarantee                       upon due
                                                                                            of debt

                                                                                            since
                                                            Joint and                       engage of
             Saturday,            Thursday,
Fangda                                                      several                         contract
             April 18,     10,000 September       5,167.8               None       None                  No      Yes
Zhichuang                                                   liability                       to 2 years
             2020                 3, 2020
                                                            guarantee                       upon due
                                                                                            of debt



                                                                                                                         42
                                                          Interim Report 2021 of China Fangda Group Co., Ltd.


                                                                                   From the
                                                                                   effective
                                                                                   date of
                                                                                   this
                                                                                   contract
                                                                                   to three
                                                                                   years
                                                                                   after the
                                                                                   expiration
                                                                        Yes, the
                                                                                   of the
                                                                        group
                                                                                   debt
                                             Joint and                  and
            Saturday,            Monday,                 Intellectual              performa
Fangda                                       several                    Jianke
            April 18,      3,000 June 29,                property                  nce          Yes   Yes
Zhichuang                                    liability                  are
            2020                 2020                    pledge                    period
                                             guarantee                  counter
                                                                                   under the
                                                                        guarant
                                                                                   "guarante
                                                                        ors
                                                                                   e
                                                                                   agreemen
                                                                                   t" (or the
                                                                                   debt early
                                                                                   maturity
                                                                                   date
                                                                                   announce
                                                                                   d by Party
                                                                                   B)

                                                                                   From the
                                                                                   effective
                                                                                   date of
                                                                                   this
                                                                                   contract
                                                                                   to three
                                                                                   years
                                                                                   after the
                                             Joint and
            Wednesday,           Friday,                                           expiration
Fangda                                       several
            January 30,   10,000 April 10,               None           None       of the       No    Yes
Zhichuang                                    liability
            2019                 2020                                              debt
                                             guarantee
                                                                                   performa
                                                                                   nce
                                                                                   period
                                                                                   under the
                                                                                   "guarante
                                                                                   e
                                                                                   agreemen
                                                                                   t" (or the


                                                                                                            43
                                                                       Interim Report 2021 of China Fangda Group Co., Ltd.


                                                                                            debt early
                                                                                            maturity
                                                                                            date
                                                                                            announce
                                                                                            d by Party
                                                                                            B)

                                                                                            since
                                                          Joint and                         engage of
Fangda     Tuesday,              Saturday,
                                                          several                           contract
New        March 23,       8,000 May 22,       3,903.26               None           None                No    Yes
                                                          liability                         to 2 years
Material   2021                  2021
                                                          guarantee                         upon due
                                                                                            of debt

                                                                                            since
                                                          Joint and                         engage of
Fangda     Saturday,             Tuesday,
                                                          several                           contract
New        April 18,       6,500 July 14,      2,194.02               None           None                No    Yes
                                                          liability                         to 2 years
Material   2020                  2020
                                                          guarantee                         upon due
                                                                                            of debt

                                                                      Mortgage
                                                                      of house
                                                                                            since
                                                                      property
                                                          Joint and                         engage of
           Wednesday,            Tuesday,                             certificate,
Fangda                                                    several                           contract
           December      135,000 February       96,000                equity         None                No    Yes
Property                                                  liability                         to 2 years
           4, 2019               25, 2020                             pledge and
                                                          guarantee                         upon due
                                                                      pledge of
                                                                                            of debt
                                                                      accounts
                                                                      receivable

                                                                                            since
                                                          Joint and   Mortgage              engage of
           Saturday,             Wednesday,
Fangda                                                    several     of house              contract
           April 18,      47,000 January 27,    46,900                               None                No    Yes
Property                                                  liability   property              to 3 years
           2020                  2021
                                                          guarantee   certificate           upon due
                                                                                            of debt

                                                                      Mortgage              since
                                                          Joint and   of house              engage of
           Wednesday,            Wednesday,
Fangda                                                    several     property              contract
           January 30,    20,000 June 19,       14,625                               None                No    Yes
Property                                                  liability   certificate           to 2 years
           2019                  2019
                                                          guarantee   and equity            upon due
                                                                      pledge                of debt

           Wednesday,            Wednesday,               Joint and   Mortgage              since
Shanghai
           January 30,     8,000 July 31,      3,491.15 several       of house       None   engage of No       Yes
Zhijian
           2019                  2019                     liability   property              contract



                                                                                                                       44
                                                                                    Interim Report 2021 of China Fangda Group Co., Ltd.


                                                                     guarantee     certificate             to 2 years
                                                                                                           upon due
                                                                                                           of debt

                                                                                                           since
                                                                     Joint and                             engage of
             Tuesday,                   Thursday,
Shanghai                                                             several                               contract
             March 23,           3,500 June 3,                                     None          None                   No         Yes
Zhijian                                                              liability                             to 3 years
             2021                       2021
                                                                     guarantee                             upon due
                                                                                                           of debt

                                                       Total of guarantee to
Total of guarantee to
                                                       subsidiaries actually
subsidiaries approved in                     359,000                                                                               157,656.34
                                                       occurred in the report
the report term (B1)
                                                       term (B2)

                                                       Total of balance of
Total of guarantee to                                  guarantee actually
subsidiaries approved as                     561,000 provided to the                                                               331,186.48
of the report term (B3)                                subsidiaries as of end of
                                                       report term (B4)

                                                    Guarantee provided to subsidiaries

                                                                                                 Counter
                                                         Actual
 Guarantee      Date of     Guarantee                                  Type of      Collateral guarant                  Complete Related
                                         Actual date amount of                                               Term
provided to disclosure       amount                                   guarantee      (if any)     ee (if                d or not      party
                                                        guarantee
                                                                                                  any)

      None

Total of guarantee provided by the Company (total of the above three)

                                                       Total of guarantee
Total of guarantee approved in
                                             359,000 occurred in the report                                                        157,656.34
the report term (A1+B1+C1)
                                                       term (A2+B2+C2)

                                                       Total of guarantee
Total of guarantee approved as
                                                       occurred as of the end of
of end of report term                        561,000                                                                               331,186.48
                                                       report term
(A3+B3+C3)
                                                       (A4+B4+C4)

Percentage of the total guarantee occurred
                                                                                                                                      60.18%
(A4+B4+C4) on net asset of the Company

Including:

Guarantees provided to the shareholders,
                                                                                                                                              0
substantial controllers and the related parties (D)

Guarantee provided directly or indirectly to
objects with over 70% of liability on asset ratio                                                                                     14,625
(E)



                                                                                                                                              45
                                                                                Interim Report 2021 of China Fangda Group Co., Ltd.


Amount of guarantee over 50% of the net asset (F)                                                                            56,032.96

Total of the above 3 (D+E+F)                                                                                                 56,032.96

For the unexpired guarantee contract, the
guarantee liability has occurred during the
reporting period or there is evidence that it is    None
possible to bear joint and several repayment
liability (if any)

Statement of external guarantees violating the
                                                    None
procedure (if any)

Note of compound guarantee
None


3. Entrusted wealth management

√ Applicable □ Inapplicable
                                                                                                                          In RMB10,000

                                                                                                                    Accrued impairment
                                                                                                                    amount of overdue
                                                                                            Due balance to be
         Type              Source of fund           Amount              Undue balance                                  unrecovered
                                                                                                recovered
                                                                                                                         financial
                                                                                                                       management

Bank financial
                       Self-owned fund                   78,468.29              13,249.37                       0                    0
products

Total                                                    78,468.29              13,249.37                       0                    0

Specific circumstances of high-risk entrusted financing with large individual amount or low security, poor liquidity, and no cost
protection
□ Applicable √ Inapplicable
Entrusted financial management expected to fail to recover the principal or likely result in impairment
□ Applicable √ Inapplicable


4. Major contracts for daily operation

□ Applicable √ Inapplicable


5. Other significant contract

□ Applicable √ Inapplicable
The Company entered into no other significant contract in the report.




                                                                                                                                     46
                                                                              Interim Report 2021 of China Fangda Group Co., Ltd.


13. Other material events

√ Applicable □ Inapplicable
     1. From July 23, 2020 to September 22, 2020, the Company completed the repurchase of some domestic listed foreign shares
(B shares) by means of centralized bidding in 2020, accumulatively repurchased 14404724 B shares with no sale conditions, and
completed the share repurchase cancellation procedures in Shenzhen Branch of China Securities Depository and Clearing
Corporation on April 23, 2021. The number of B shares with unrestricted shares decreased by 14,404,724 shares, and the Company's
total share capital decreased from 1,088,278,951 shares to 1,073,874,227 shares. The Company disclosed the announcement on the
completion of share repurchase cancellation and share change on April 27, 2021.

    2. The Company signed the investment framework agreement with the People's Government of Xiegang Town,

Dongguan City, Guangdong Province on May 21, 2021. The Company plans to invest in the development of Fangda Bay

District Headquarters project in Xiegang Town, Dongguan City, Guangdong Province. The Company disclosed the

announcement on signing the project investment framework agreement on May 22, 2021, and is actively promoting

the signing of the formal investment agreement.


XIV. Material events of subsidiaries

□ Applicable √ Inapplicable




                                                                                                                              47
                                                                      Interim Report 2021 of China Fangda Group Co., Ltd.




             Chapter VII Changes in Share Capital and Shareholders

I. Changes in shares

1. Changes in shares

                                                                                                                            In share

                           Before the change                      Change (+,-)                                After the change

                                                Issued             Transferre
                                                         Bonus                                                           Proportio
                          Quantity Proportion    new                d from       Others       Subtotal       Quantity
                                                         shares                                                             n
                                                shares              reserves

I. Shares with trade
                          2,302,093     0.21%                                                                2,302,093      0.21%
restriction conditions

  1. State-owned shares

  2. State-owned legal
person shares

  3. Other domestic shares 2,302,093    0.21%                                                                2,302,093      0.21%

     Including: Shares
held by domestic legal
persons

       Domestic natural
                          2,302,093     0.21%                                                                2,302,093      0.21%
person shares

  4. Shares held by
foreign investors

     Including: Shares
held by foreign legal
persons

       Domestic natural
person shares

                          1,085,976,                                            -14,404,72 -14,404,72 1,071,572
II. Unrestricted shares                99.79%                                                                              99.79%
                                858                                                       4              4        ,134

  1. Common shares in     677,413,3                                                                          677,413,3
                                       62.25%                                                                              63.08%
RMB                              79                                                                                79

  2. Foreign shares in    408,563,4                                             -14,404,72 -14,404,72 394,158,7
                                       37.54%                                                                              36.70%
domestic market                  79                                                       4              4         55

  3. Foreign shares in
overseas market



                                                                                                                                 48
                                                                                Interim Report 2021 of China Fangda Group Co., Ltd.


  4. Others

                               1,088,278,                                               -14,404,72 -14,404,72 1,073,874
III. Total of capital shares                100.00%                                                                           100.00%
                                     951                                                         4           4        ,227

Reasons
√ Applicable □ Inapplicable
In order to protect the Company's value and shareholders' rights and interests, the Company repurchased some domestic listed foreign
shares (B shares) by means of centralized competitive trading, and completed the share repurchase cancellation procedures in
Shenzhen Branch of China Securities Depository and Clearing Corporation Limited on April 23, 2021. The B shares of shares with
unlimited conditions were reduced by 14,404,724, and the total share capital of the Company was reduced from 1,088,278,951 to
1,073,874,227 shares.


Approval of the change
√ Applicable □ Inapplicable
The Company's repurchase of some domestic listed foreign shares (B shares) in 2020 was reviewed and approved at the second
meeting of the ninth board of directors and the 2020 annual general meeting of shareholders held by the Company on June 23, 2020
and April 12, 2021 respectively.


Share transfer
√ Applicable □ Inapplicable
The Company repurchased some 14,404,724 shares of domestically listed foreign shares (B shares) in 2020, and completed the share
repurchase and cancellation procedures at the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited on
April 23, 2021.


Progress in the implementation of share repurchase
√ Applicable □ Inapplicable
From July 23, 2020 to September 22, 2020, the Company completed the repurchase of some domestic listed foreign shares (B shares)
in 2020 by means of centralized bidding. It has repurchased 14404724 B shares of the Company, with the highest repurchase price of
HK $3.47/share and the lowest repurchase price of HK $3.16/share, paid HK $48,359,819.24 (including transaction related expenses)
and 14,404,724 shares have been cancelled on April 23, 2021.


Progress in the implementation of the reduction of shareholding shares by means of centralized bidding
□ Applicable √ Inapplicable
Impacts on financial indicators including basic and diluted earnings per share, net assets per share attributable to common
shareholders of the Company in the most recent year and period
□ Applicable √ Inapplicable
Others that need to be disclosed as required by the securities supervisor
□ Applicable √ Inapplicable


2. Changes in conditional shares

□ Applicable √ Inapplicable


                                                                                                                                    49
                                                                                     Interim Report 2021 of China Fangda Group Co., Ltd.


II. Share placing and listing

□ Applicable √ Inapplicable


III. Shareholders and shareholding

                                                                                                                                   In share

                                                                       Number of shareholders of
Number of shareholders of
                                                                       preferred stocks of which voting
common shares at the end of                                   58,605                                                                    0
                                                                       rights recovered in the report
the report period
                                                                       period

                             Shareholders holding 5% of the Company's common shares or top-10 shareholders

                                                     Number of                                                Pledge, marking or freezing
                                                                     Change in Condition
                                       Shareholdi     common                                Unconditional
    Name of             Nature of                                       the          al
                                           ng       shares held at                             common          Share
  shareholder         shareholder                                    reporting   common                                      Quantity
                                       percentage the end of the                                 shares        status
                                                                       period     shares
                                                    report period

Shenzhen
Banglin             Domestic
Technologies        non-state legal       11.11% 119,332,846 1,025,300                         119,332,846 Pledged             32,700,000
Development         person
Co., Ltd.

Shengjiu            Foreign legal
                                           9.89% 106,249,814 1,115,252                         106,249,814
Investment Ltd. person

                    Domestic natural
Fang Wei                                   2.94%      31,537,937 1,215,500                      31,537,937
                    person

Gong Qing
Cheng Shi Li
He Investment       Domestic
Management          non-state legal        1.48%      15,860,609                                15,860,609
Partnership         person
Enterprise
(limited partner)

VANGUARD
EMERGING
                    Foreign legal
MARKETS                                    0.59%       6,312,683                                  6,312,683
                    person
STOCK
INDEX FUND

VANGUARD
TOTAL               Foreign legal
                                           0.58%       6,247,740                                  6,247,740
INTERNATIO person
NAL STOCK


                                                                                                                                        50
                                                                                  Interim Report 2021 of China Fangda Group Co., Ltd.


INDEX FUND

Shenwan
Hongyuan
                   Foreign legal
Securities                                0.54%       5,783,896                               5,783,896
                   person
(Hong Kong)
Co., Ltd.

                   Domestic natural
Qu Chunlin                                0.53%       5,666,861                               5,666,861
                   person

First Shanghai
                   Foreign legal
Securities                                0.37%       3,938,704                               3,938,704
                   person
Limited

Shanghai Silver
Leaf Investment
Co., Ltd.-Silver
Leaf
Quantitative
                   Others                 0.35%       3,755,500                               3,755,500
Hedging Phase
1 Private
Securities
Investment
Fund

A strategic investor or ordinary
legal person becomes the Top10        None
shareholder due a stock issue.

                                      Among the shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu
                                      Investment Co., Ltd. are parties action-in-concert. Shenzhen Banglin Technology Development
Notes to top ten shareholder
                                      Co., Ltd. and Gong Qing Cheng Shi Li He Investment Management Partnership Enterprise are
relationship or "action in concert"
                                      related parties. The Company is not notified of other action-in-concert or related parties among
                                      the other holders of current shares.

Description of the above
shareholders involved in entrusted
                                      None
/ entrusted voting right and waiver
of voting right

Special instructions on the
existence of special repurchase
                                      None
account among the top 10
shareholders

                                         Top 10 shareholders of unconditional common shares

                                                                                                           Category of shares
        Name of shareholder               Amount of common shares without sales restriction         Category of
                                                                                                                         Quantity
                                                                                                       shares


                                                                                                                                         51
                                                                               Interim Report 2021 of China Fangda Group Co., Ltd.


Shenzhen Banglin Technologies                                                                  RMB common
                                                                                 119,332,846                            119,332,846
Development Co., Ltd.                                                                          shares

                                                                                               Domestically
Shengjiu Investment Ltd.                                                         106,249,814 listed foreign             106,249,814
                                                                                               shares

                                                                                               RMB common
Fang Wei                                                                          31,537,937                             31,537,937
                                                                                               shares

Gong Qing Cheng Shi Li He
Investment Management                                                                          RMB common
                                                                                  15,860,609                             15,860,609
Partnership Enterprise (limited                                                                shares
partner)

                                                                                               Domestically
VANGUARD EMERGING
                                                                                   6,312,683 listed foreign                6,312,683
MARKETS STOCK INDEX FUND
                                                                                               shares

VANGUARD TOTAL                                                                                 Domestically
INTERNATIONAL STOCK                                                                6,247,740 listed foreign                6,247,740
INDEX FUND                                                                                     shares

                                                                                               Domestically
Shenwan Hongyuan Securities
                                                                                   5,783,896 listed foreign                5,783,896
(Hong Kong) Co., Ltd.
                                                                                               shares

                                                                                               RMB common
Qu Chunlin                                                                         5,666,861                               5,666,861
                                                                                               shares

                                                                                               Domestically
First Shanghai Securities Limited                                                  3,938,704 listed foreign                3,938,704
                                                                                               shares

Shanghai Silver Leaf Investment
Co., Ltd.-Silver Leaf Quantitative                                                             RMB common
                                                                                   3,755,500                               3,755,500
Hedging Phase 1 Private Securities                                                             shares
Investment Fund

No action-in-concert or related
parties among the top10              Among the shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu
unconditional common share           Investment Co., Ltd. are parties action-in-concert. Shenzhen Banglin Technology
shareholders and between the top10 Development Co., Ltd. and Gong Qing Cheng Shi Li He Investment Management Partnership
unconditional common share           Enterprise are related parties. The Company is not notified of other action-in-concert or
shareholders and the top10 common related parties among the other holders of current shares.
share shareholders

                                     Shenzhen Banglin Technology Development Co., Ltd. holds 55,000,000 shares of the
                                     Company through the customer credit transaction guarantee securities account of Ping An
Top-10 common share shareholders
                                     Securities Co., Ltd., and Shanghai Yinye Investment Co., Ltd.-Yinye Quantitative Hedging
participating in margin trade
                                     Phase 2 Private Securities Investment Fund through Xiangcai Securities Co., Ltd. The
                                     customer credit transaction guarantee securities account holds 3,755,500 shares of the


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                                       Company.

Agreed re-purchasing by the Company’s top 10 shareholders of common shares and top 10 shareholders of unconditional common
shares in the report period
□ Yes √ No
No agreed re-purchasing by the Company’s top 10 shareholders of common shares and top 10 shareholders of unconditional
common shares in the report period


IV. Changes in shareholding of Directors, Supervisors and Senior Management

□ Applicable √ Inapplicable
The Company’s Directors, supervisors and senior management shareholding has remained unchanged during the report period. For
details, please refer to the 2020 annual report.


V. Changes in controlling shareholder or actual controller

Changes in the controlling shareholder in the reporting period
□ Applicable √ Inapplicable
No change in the controlling shareholder in the report period
Change in the actual controller in the report period
□ Applicable √ Inapplicable
No change in the actual shareholder in the report period




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                                    Chapter VIII Preferred Shares

□ Applicable √ Inapplicable
The Company had no preferred share in the report period.




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                                           Interim Report 2021 of China Fangda Group Co., Ltd.




          Chapter IX Information about the Company’s Securities

□ Applicable √ Inapplicable




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                                       Chapter X Financial Statements

I. Auditor’s report

Whether the interim report is audited
□ Yes √ No
The financial statements for H1 2014 have not been audited.


II. Financial statements

Unit for statements in notes to financial statements: RMB yuan


1. Consolidated Balance Sheet

Prepared by: China Fangda Group Co., Ltd.
                                                    Wednesday, June 30, 2021
                                                                                                                         In RMB

                   Item                           Wednesday, June 30, 2021                 Thursday, December 31, 2020

Current asset:

     Monetary capital                                             1,246,131,160.65                            1,463,974,162.44

     Settlement provision

     Outgoing call loan

     Transactional financial assets                                 132,493,708.09                               14,382,896.04

     Derivative financial assets                                      5,096,490.27                                6,974,448.22

     Notes receivable                                             117,929,830.31                                207,165,063.97

     Account receivable                                           446,412,912.08                                616,952,136.19

     Receivable financing                                            23,798,104.10                               10,727,129.28

     Prepayment                                                      24,126,119.19                               24,105,635.39

     Insurance receivable

     Reinsurance receivable

     Provisions of Reinsurance
contracts receivable

     Other receivables                                              168,599,288.27                              162,282,396.88

       Including: interest receivable                                 1,601,660.58

                 Dividend receivable

     Repurchasing of financial assets



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     Inventory                               774,694,262.15                             837,831,790.88

     Contract assets                       1,662,933,014.05                           1,433,599,583.48

     Assets held for sales

     Non-current assets due in 1 year         91,082,209.06                             141,943,454.82

     Other current assets                    235,259,911.57                             233,223,084.51

Total current assets                       4,928,557,009.79                           5,153,161,782.10

Non-current assets:

     Loan and advancement provided

     Debt investment

     Other debt investment

     Long-term receivables

     Long-term share equity investment        55,449,484.30                              55,902,377.95

     Investment in other equity tools         17,398,629.00                              17,628,307.59

     Other non-current financial assets        5,198,015.90                               5,025,186.16

     Investment real estate                5,646,194,098.44                           5,634,648,416.52

     Fixed assets                            566,440,865.19                             483,217,323.75

     Construction in process                  98,594,455.15                             168,626,803.01

     Productive biological assets

     Gas & petrol

     Use right assets                         25,764,982.77

     Intangible assets                        76,541,048.06                              77,201,610.87

     R&D expense

     Goodwill

     Long-term amortizable expenses            7,008,249.85                               4,581,487.32

     Deferred income tax assets              186,758,149.49                             186,649,335.96

     Other non-current assets                107,305,323.12                             104,817,688.85

Total of non-current assets                6,792,653,301.27                           6,738,298,537.98

Total of assets                            11,721,210,311.06                         11,891,460,320.08

Current liabilities

     Short-term loans                      1,174,631,199.75                           1,048,250,327.62

     Loans from Central Bank

     Call loan received

     Transactional financial liabilities

     Derivative financial liabilities                                                       915,234.93



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       Notes payable                       684,298,609.74                             866,224,515.42

       Account payable                    1,127,961,009.14                          1,282,847,988.91

       Prepayment received                   3,726,440.79                               1,544,655.62

       Contract liabilities                166,915,485.03                             265,487,113.12

       Selling of repurchased financial
assets

       Deposit received and held for
others

       Entrusted trading of securities

       Entrusted selling of securities

       Employees' wage payable              26,879,789.78                              60,894,196.78

       Taxes payable                        36,203,828.98                             360,325,524.42

       Other payables                      158,525,255.26                             153,635,067.86

         Including: interest payable

                 Dividend payable                                                       6,000,000.00

       Fees and commissions payable

       Reinsurance fee payable

       Liabilities held for sales

       Non-current liabilities due in 1
                                           119,496,617.91                             103,359,833.57
year

       Other current liabilities            36,713,615.23                             107,688,425.69

Total current liabilities                 3,535,351,851.61                          4,251,172,883.94

Non-current liabilities:

       Insurance contract provision

       Long-term loans                    1,484,161,462.35                          1,099,411,462.35

       Bond payable

         Including: preferred stock

                 Perpetual bond

       Lease liabilities                    24,619,179.70

       Long-term payable

       Long-term employees' wage
payable

       Anticipated liabilities              30,000,528.43                              33,425,500.13

       Deferred earning                      8,843,181.51                               9,168,492.17

       Deferred income tax liabilities    1,039,785,167.05                          1,038,084,099.97



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     Other non-current liabilities

Total of non-current liabilities                                 2,587,409,519.04                            2,180,089,554.62

Total liabilities                                                6,122,761,370.65                            6,431,262,438.56

Owner's equity:

     Share capital                                               1,073,874,227.00                            1,088,278,951.00

     Other equity tools

        Including: preferred stock

                 Perpetual bond

     Capital reserves                                              122,211,372.31                               20,459,588.40

     Less: Shares in stock                                                                                      42,748,530.12

     Other miscellaneous income                                      2,076,706.89                                2,078,167.63

     Special reserves

     Surplus reserve                                                                                           106,783,436.96

     Common risk provisions

     Retained profit                                           4,304,908,130.31                              4,217,527,242.56

Total of owner's equity belong to the
                                                               5,503,070,436.51                              5,392,378,856.43
parent company

     Minor shareholders' equity                                     95,378,503.90                               67,819,025.09

Total of owners' equity                                        5,598,448,940.41                              5,460,197,881.52

Total of liabilities and owner's interest                     11,721,210,311.06                             11,891,460,320.08


Legal representative: Xiong Jianming        CFO: Lin Kebing         Accounting Manager: Wu Bohua


2. Balance Sheet of the Parent Company

                                                                                                                        In RMB

                    Item                         Wednesday, June 30, 2021                 Thursday, December 31, 2020

Current asset:

     Monetary capital                                              104,169,224.51                              204,828,995.78

     Transactional financial assets

     Derivative financial assets

     Notes receivable

     Account receivable                                                888,385.48                                  885,849.08

     Receivable financing

     Prepayment                                                        291,635.93                                1,323,361.34

     Other receivables                                           1,624,397,140.22                            1,156,802,204.91


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        Including: interest receivable

                  Dividend receivable

     Inventory

     Contract assets

     Assets held for sales

     Non-current assets due in 1 year

     Other current assets                     1,171,313.27                               1,071,138.13

Total current assets                       1,730,917,699.41                          1,364,911,549.24

Non-current assets:

     Debt investment

     Other debt investment

     Long-term receivables

     Long-term share equity investment     1,196,831,253.00                          1,196,831,253.00

     Investment in other equity tools        16,392,331.44                              16,392,331.44

     Other non-current financial assets      30,000,001.00                              30,000,001.00

     Investment real estate                 330,957,456.00                             334,498,436.00

     Fixed assets                            69,799,553.04                              65,157,481.98

     Construction in process

     Productive biological assets

     Gas & petrol

     Use right assets

     Intangible assets                        1,366,852.92                               1,521,975.72

     R&D expense

     Goodwill

     Long-term amortizable expenses             450,845.25                                 687,202.16

     Deferred income tax assets              28,784,112.10                              26,592,617.26

     Other non-current assets

Total of non-current assets                1,674,582,404.75                          1,671,681,298.56

Total of assets                            3,405,500,104.16                          3,036,592,847.80

Current liabilities

     Short-term loans                       490,203,611.11                             491,503,263.89

     Transactional financial liabilities

     Derivative financial liabilities

     Notes payable



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       Account payable                         606,941.85                                 606,941.85

       Prepayment received                     868,632.74                                 927,674.32

       Contract liabilities

       Employees' wage payable               1,256,126.64                               3,440,073.04

       Taxes payable                           826,759.56                               2,993,196.12

       Other payables                      374,408,006.97                              28,068,648.70

         Including: interest payable

                 Dividend payable

       Liabilities held for sales

       Non-current liabilities due in 1
year

       Other current liabilities

Total current liabilities                  868,170,078.87                             527,539,797.92

Non-current liabilities:

       Long-term loans

       Bond payable

         Including: preferred stock

                 Perpetual bond

       Lease liabilities

       Long-term payable

       Long-term employees' wage
payable

       Anticipated liabilities

       Deferred earning

       Deferred income tax liabilities      74,187,186.84                              73,837,511.85

       Other non-current liabilities

Total of non-current liabilities            74,187,186.84                              73,837,511.85

Total liabilities                          942,357,265.71                             601,377,309.77

Owner's equity:

       Share capital                      1,073,874,227.00                          1,088,278,951.00

       Other equity tools

         Including: preferred stock

                 Perpetual bond

       Capital reserves                        360,835.52                                 360,835.52

       Less: Shares in stock                                                           42,748,530.12


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       Other miscellaneous income                        1,137,972.98                                -371,129.71

       Special reserves

       Surplus reserve                                  78,439,630.84                             106,783,436.96

       Retained profit                            1,309,330,172.11                               1,282,911,974.38

Total of owners' equity                           2,463,142,838.45                               2,435,215,538.03

Total of liabilities and owner's interest         3,405,500,104.16                               3,036,592,847.80


3. Consolidated Income Statement

                                                                                                          In RMB

                    Item                    H1 2021                                    H1 2020

1. Total revenue                                      1,568,778,834.98                           1,256,258,223.01

       Incl. Business income                          1,568,778,834.98                           1,256,258,223.01

              Interest income

              Insurance fee earned

              Fee and commission
received

2. Total business cost                           1,464,915,772.96                                1,161,656,553.71

       Incl. Business cost                       1,208,641,803.18                                 972,247,913.86

              Interest expense

              Fee and commission paid

              Insurance discharge payment

              Net claim amount paid

              Net insurance policy
responsibility reserves provided

              Insurance policy dividend
paid

              Reinsurance expenses

              Taxes and surcharges                      35,853,693.88                               7,589,822.75

              Sales expense                             25,434,914.81                              21,243,542.31

              Administrative expense                   69,502,453.93                               63,196,975.88

              R&D cost                                  78,645,594.86                              52,496,161.25

              Financial expenses                        46,837,312.30                              44,882,137.66

                 Including: interest cost               43,637,100.05                              43,164,977.83

                          Interest income                6,976,161.44                               6,956,602.08

       Add: other gains                                  6,607,058.06                                6,214,112.77


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             Investment gains “-” for loss)       -532,743.54                               -642,178.57

             Incl. Investment gains from
                                                    -452,893.65                               -375,202.09
affiliates and joint ventures

                  Financial assets
                                                  -3,032,899.72                             -2,255,794.10
derecognised as a result of amortized cost

             Exchange gains ("-" for loss)

             Net open hedge gains (“-” for
loss)

             Gains from change of fair value
                                                    172,829.74                                  50,384.90
(“-“ for loss)

             Credit impairment ("-" for loss)     19,853,416.06                             54,670,793.32

             Investment impairment loss
                                                   3,466,913.89                             20,219,822.04
("-" for loss)

             Investment gains ("-" for loss)      -2,027,304.03                                 -1,981.72

3. Operational profit ("-" for loss)            131,403,232.20                             175,112,622.04

        Plus: non-operational income               1,201,106.46                                280,621.27

        Less: non-operational expenditure          3,480,374.51                              5,275,868.33

4. Gross profit ("-" for loss)                  129,123,964.15                             170,117,374.98

        Less: Income tax expenses                13,936,493.66                              22,259,131.92

5. Net profit ("-" for net loss)                115,187,470.49                             147,858,243.06

  (1) By operating consistency

        1. Net profit from continuous
                                                115,187,470.49                             147,858,243.06
operation ("-" for net loss)

        2. Net profit from discontinuous
operation ("-" for net loss)

  (2) By ownership

        1. Net profit attributable to the
                                                111,488,701.33                             147,784,781.12
owners of parent company

        2. Minor shareholders’ equity             3,698,769.16                                 73,461.94

6. After-tax net amount of other misc.
                                                     -24,854.15                                940,933.00
incomes

  After-tax net amount of other misc.
                                                      -1,460.74                                940,933.00
incomes attributed to parent's owner

        (1) Other misc. incomes that cannot
                                                    -229,678.59                               -520,143.59
be re-classified into gain and loss

                1. Re-measure the change in
the defined benefit plan


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             2. Other comprehensive
income that cannot be transferred to
profit or loss under the equity method

             3. Fair value change of
                                                                         -229,678.59                                 -520,143.59
investment in other equity tools

             4. Fair value change of the
Company's credit risk

             5. Others

     (2) Other misc. incomes that will be
                                                                         228,217.85                                 1,461,076.59
re-classified into gain and loss

             1. Other comprehensive
income that can be transferred to profit or
loss under the equity method

             2. Fair value change of other
debt investment

             3. Gains and losses from
changes in fair value of available-for-sale
financial assets

             4. Other credit investment
credit impairment provisions

             5. Cash flow hedge reserve                                  -785,690.88                                1,625,577.36

             6. Translation difference of
                                                                         -495,193.96                                 -164,500.77
foreign exchange statement

             7. Others                                                  1,509,102.69

  After-tax net of other misc. income
                                                                          -23,393.41
attributed to minority shareholders

7. Total of misc. incomes                                           115,162,616.34                                148,799,176.06

     Total of misc. incomes attributable
                                                                    111,487,240.59                                148,725,714.12
to the owners of the parent company

     Total misc gains attributable to the
                                                                        3,675,375.75                                   73,461.94
minor shareholders

8. Earnings per share:

     (1) Basic earnings per share                                               0.10                                           0.13

     (2) Diluted earnings per share                                             0.10                                           0.13

Net profit contributed by entities merged under common control in the report period was RMB17,512.89, net profit realized by
parties merged during the previous period is RMB1,049,885.06.


Legal representative: Xiong Jianming          CFO: Lin Kebing          Accounting Manager: Wu Bohua



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4. Income Statement of the Parent Company

                                                                                                         In RMB

                      Item                    H1 2021                                 H1 2020

1. Turnover                                             12,068,999.58                             12,719,395.10

        Less: Operation cost                               89,904.13                                 151,219.77

            Taxes and surcharges                          664,469.85                                 677,865.78

            Sales expense

            Administrative expense                      13,509,831.81                             11,316,043.39

            R&D cost

            Financial expenses                           7,575,722.85                             14,753,727.62

               Including: interest cost                  7,449,236.11                             15,820,677.77

                       Interest income                    407,702.78                               1,914,893.50

        Add: other gains                                   85,100.49                                 295,818.89

            Investment gains (“-” for
                                                        33,976,138.71                                338,561.17
loss)

            Incl. Investment gains from
affiliates and joint ventures

                 Financial assets
derecognised as a result of amortized
cost ("-" for loss)

            Net open hedge gains (“-”
for loss)

            Gains from change of fair
value (“-“ for loss)

            Credit impairment ("-" for
                                                            -3,239.44                                 -2,277.86
loss)

            Investment impairment loss
("-" for loss)

            Investment gains ("-" for loss)                   -460.17

2. Operational profit (“-” for loss)                  24,286,610.53                            -13,547,359.26

        Plus: non-operational income                       32,837.61                                  51,867.26

        Less: non-operational expenditure                 101,429.05                                   1,008.00

3. Gross profit ("-" for loss)                          24,218,019.09                            -13,496,500.00

        Less: Income tax expenses                       -2,200,178.64                             -3,313,543.54

4. Net profit (“-” for net loss)                      26,418,197.73                            -10,182,956.46

        (1) Net profit from continuous                  26,418,197.73                            -10,182,956.46


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operation ("-" for net loss)

       (2) Net profit from discontinuous
operation ("-" for net loss)

5. After-tax net amount of other misc.
                                              1,509,102.69
incomes

       (1) Other misc. incomes that
cannot be re-classified into gain and
loss

              1. Re-measure the change
in the defined benefit plan

              2. Other comprehensive
income that cannot be transferred to
profit or loss under the equity method

              3. Fair value change of
investment in other equity tools

              4. Fair value change of the
Company's credit risk

              5. Others

       (2) Other misc. incomes that will
                                              1,509,102.69
be re-classified into gain and loss

              1. Other comprehensive
income that can be transferred to profit
or loss under the equity method

              2. Fair value change of
other debt investment

              3. Gains and losses from
changes in fair value of
available-for-sale financial assets

              4. Other credit investment
credit impairment provisions

              5. Cash flow hedge reserve

              6. Translation difference of
foreign exchange statement

            7. Others                         1,509,102.69

6. Total of misc. incomes                    27,927,300.42                            -10,182,956.46

7. Earnings per share:

       (1) Basic earnings per share

       (2) Diluted earnings per share



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5. Consolidated Cash Flow Statement

                                                                                                          In RMB

                    Item                    H1 2021                                    H1 2020

1. Net cash flow from business
operations:

       Cash received from sales of
                                                      1,573,340,053.10                           1,154,804,074.94
products and providing of services

       Net increase of customer deposits
and capital kept for brother company

       Net increase of loans from central
bank

       Net increase of inter-bank loans
from other financial bodies

       Cash received against original
insurance contract

       Net cash received from reinsurance
business

       Net increase of client deposit and
investment

       Cash received as interest,
processing fee, and commission

       Net increase of inter-bank fund
received

       Net increase of repurchasing
business

       Net cash received from trading
securities

       Tax refunded                                     16,480,293.15                               3,703,306.32

       Other cash received from business
                                                        91,747,818.37                             213,986,261.22
operation

Sub-total of cash inflow from business
                                                      1,681,568,164.62                           1,372,493,642.48
operations

       Cash paid for purchasing products
                                                      1,361,468,797.85                            996,468,687.27
and services

       Net increase of client trade and
advance

       Net increase of savings in central
bank and brother company


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     Cash paid for original contract
claim

     Net increase in funds dismantled

     Cash paid for interest, processing
fee and commission

     Cash paid for policy dividend

     Cash paid to and for the staff           196,896,028.86                             168,329,630.62

     Taxes paid                               431,724,633.10                              69,056,612.37

     Other cash paid for business
                                              192,403,249.81                             277,565,976.54
activities

Sub-total of cash outflow from business
                                             2,182,492,709.62                          1,511,420,906.80
operations

Cash flow generated by business
                                             -500,924,545.00                            -138,927,264.32
operations, net

2. Cash flow generated by investment:

     Cash received from investment
                                             2,224,594,891.08                          2,516,455,357.62
recovery

     Cash received as investment profit         2,754,435.58                               9,253,861.27

     Net cash retrieved from disposal of
fixed assets, intangible assets, and other        332,717.49
long-term assets

     Net cash received from disposal of
subsidiaries or other operational units

     Other investment-related cash
                                                                                                 250.00
received

Sub-total of cash inflow generated from
                                             2,227,682,044.15                          2,525,709,468.89
investment

     Cash paid for construction of fixed
assets, intangible assets and other            54,321,772.94                              69,468,255.88
long-term assets

     Cash paid as investment                 2,167,460,000.00                          2,516,610,000.00

     Net increase of loan against pledge

     Net cash paid for acquiring
                                              125,388,100.00
subsidiaries and other operational units

     Other cash paid for investment             1,323,355.15

Subtotal of cash outflows                    2,348,493,228.09                          2,586,078,255.88

Cash flow generated by investment
                                              -120,811,183.94                            -60,368,786.99
activities, net


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3. Cash flow generated by financing
activities:

     Cash received from investment

     Incl. Cash received from
investment attracted by subsidiaries
from minority shareholders

     Cash received from borrowed
                                                         1,220,000,000.00                           2,304,697,876.18
loans

     Other cash received from financing
activities

Subtotal of cash inflow from financing
                                                         1,220,000,000.00                           2,304,697,876.18
activities

     Cash paid to repay debts                             445,249,952.00                            1,813,978,153.39

     Cash paid as dividend, profit, or
                                                           64,069,929.56                             128,588,570.23
interests

     Incl. Dividend and profit paid by
                                                            4,560,100.00
subsidiaries to minority shareholders

     Other cash paid for financing
                                                          529,360,479.34                             281,298,965.99
activities

Subtotal of cash outflow from financing
                                                         1,038,680,360.90                           2,223,865,689.61
activities

Net cash flow generated by financing
                                                          181,319,639.10                              80,832,186.57
activities

4. Influence of exchange rate changes
                                                             -671,353.77                               1,284,254.96
on cash and cash equivalents

5. Net increase in cash and cash
                                                         -441,087,443.61                             -117,179,609.78
equivalents

     Plus: Balance of cash and cash
                                                         1,028,386,529.73                            730,933,482.19
equivalents at the beginning of term

6. Balance of cash and cash equivalents
                                                          587,299,086.12                             613,753,872.41
at the end of the period


6. Cash Flow Statement of the Parent Company

                                                                                                             In RMB

                  Item                         H1 2021                                    H1 2020

1. Net cash flow from business
operations:

     Cash received from sales of                           10,393,331.14                               8,683,073.96


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products and providing of services

     Tax refunded                                                                            232,652.87

     Other cash received from business
                                             2,246,619,631.82                          2,914,427,921.50
operation

Sub-total of cash inflow from business
                                             2,257,012,962.96                          2,923,343,648.33
operations

     Cash paid for purchasing products
                                                  342,534.67                                 406,441.27
and services

     Cash paid to and for the staff            10,905,880.26                               9,739,820.05

     Taxes paid                                 3,555,895.62                                 793,263.98

     Other cash paid for business
                                             2,367,856,652.84                          2,553,029,078.24
activities

Sub-total of cash outflow from business
                                             2,382,660,963.39                          2,563,968,603.54
operations

Cash flow generated by business
                                             -125,648,000.43                             359,375,044.79
operations, net

2. Cash flow generated by investment:

     Cash received from investment
                                              382,800,000.00                             562,800,000.00
recovery

     Cash received as investment profit        33,976,138.71                                 338,561.17

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

     Net cash received from disposal of
subsidiaries or other operational units

     Other investment-related cash
received

Sub-total of cash inflow generated from
                                              416,776,138.71                             563,138,561.17
investment

     Cash paid for construction of fixed
assets, intangible assets and other               239,020.66                                  48,767.89
long-term assets

     Cash paid as investment                  382,800,000.00                             562,800,000.00

     Net cash paid for acquiring
subsidiaries and other operational units

     Other cash paid for investment

Subtotal of cash outflows                     383,039,020.66                             562,848,767.89

Cash flow generated by investment              33,737,118.05                                 289,793.28


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activities, net

3. Cash flow generated by financing
activities:

     Cash received from investment

     Cash received from borrowed
                                                                              300,000,000.00                              500,000,000.00
loans

     Other cash received from financing
activities

Subtotal of cash inflow from financing
                                                                              300,000,000.00                              500,000,000.00
activities

     Cash paid to repay debts                                                 300,000,000.00                              810,000,000.00

     Cash paid as dividend, profit, or
                                                                                8,748,888.89                               71,233,278.75
interests

     Other cash paid for financing
                                                                                                                           99,998,965.99
activities

Subtotal of cash outflow from financing
                                                                              308,748,888.89                              981,232,244.74
activities

Net cash flow generated by financing
                                                                               -8,748,888.89                             -481,232,244.74
activities

4. Influence of exchange rate changes
                                                                                                                              -78,890.92
on cash and cash equivalents

5. Net increase in cash and cash
                                                                             -100,659,771.27                             -121,646,297.59
equivalents

     Plus: Balance of cash and cash
                                                                              204,578,995.78                              175,341,953.63
equivalents at the beginning of term

6. Balance of cash and cash equivalents
                                                                              103,919,224.51                               53,695,656.04
at the end of the period


7. Statement of Change in Owners’ Equity (Consolidated)

Amount of the Current Term
                                                                                                                                   In RMB

                                                                             H1 2021

                                           Owners' Equity Attributable to the Parent Company
                                                                                                                                   Total
                           Other equity tools                     Other                                                   Minor
                                                          Less:             Specia            Comm                                  of
        Item      Share                         Capital           miscell            Surplu          Retain               shareh
                                                    Shares           l            on risk            Subtot         owners
                           Prefe Perpe                                                                      olders'
                  capita              Other reserve        aneous            s             ed Others
                            rred tual                  in         reserve         provisi              al             '
                    l                   s      s           incom          reserve         profit            equity
                           share bond                stock           s              ons                             equity
                                                              e


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                      1,088
1. Balance at                 11,459 42,748               106,78         4,215,         5,380, 66,538 5,447,
                      ,278,                     2,078,
the end of last               ,588.4 ,530.1               3,436.        005,54          857,15 ,836.0 395,99
                      951.0                     167.63
year                              0        2                 96            1.52           5.39       9      1.48
                         0

       Plus:
Changes in
accounting
policies


Correction of
previous errors


                                                                                        11,521            12,801
Consolidation                 9,000,                                     2,521,                  1,280,
                                                                                        ,701.0            ,890.0
of entities under             000.00                                    701.04                   189.00
                                                                                             4                4
common control


Others

                      1,088
2. Balance at                 20,459 42,748               106,78         4,217,         5,392, 67,819 5,460,
                      ,278,                     2,078,
the beginning of              ,588.4 ,530.1               3,436.        527,24          378,85 ,025.0 197,88
                      951.0                     167.63
current year                      0        2                 96            2.56           6.43       9      1.52
                         0

3. Change
amount       in the   -14,4   101,75 -42,74               -106,7                                 27,559
                                                -1,460.                 87,380          110,69            138,25
current period        04,72   1,783. 8,530.               83,436                                 ,478.8
                                                    74                   ,887.7         1,580.            1,058.
(“-“ for             4.00      91       12                 .96                                     1
                                                                              5             08               89
decrease)



                                                                        111,48          111,48            115,16
(1) Total of                                    -1,460.                                          3,675,
                                                                         8,701.         7,240.            2,616.
misc. incomes                                       74                                           375.75
                                                                            33              59               34



(2) Investment
                      -14,4            -42,74
or decreasing of                                          -28,34
                      04,72            8,530.
capital by                                                3,806.
                       4.00               12
owners                                                       12


1. Common             -14,4            -42,74
                                                          -28,34
shares invested       04,72            8,530.
                                                          3,806.
by owners              4.00               12
                                                             12

2. Capital
contributed by


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other equity
instrument
holders

3. Amount of
shares paid and
accounted as
owners' equity

4. Others

(3) Profit
allotment

1. Provision of
surplus reserves

2. Common risk
provision

3. Distribution
to owners (or
shareholders)

4. Others

(4) Internal
carry-over of
owners' equity

1. Capitalizing
of capital
reserves (or
share capital)

2. Capitalizing
of surplus
reserves (or
share capital)

3. Surplus
reserves used to
cover losses

4. Retained gain
transferred due
to change in set
benefit program

5. Other
miscellaneous
income

6. Others


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(5) Special
reserves

1. Provided this
year

2. Used this
period



                                                   101,75                               -78,43          -24,10                 23,884 23,088
                                                                                                                      -795,6
(6) Others                                         1,783.                               9,630.          7,813.                  ,103.0 ,442.5
                                                                                                                       60.51
                                                       91                                   84              58                       6         5




                   1,073
4. Balance at                                      122,21                                               4,304,
                    ,874,                                             2,076,                                          5,503, 95,378 5,598,
the end of this                                    1,372.                                               908,13
                   227.0                                             706.89                                           070,43 ,503.9 448,94
period                                                 31                                                 0.31
                         0                                                                                              6.51         0      0.41


Amount of the Previous Term
                                                                                                                                          In RMB

                                                                                H1 2020

                                            Owners' Equity Attributable to the Parent Company

                             Other equity tools                     Other                                                    Minor
                                                            Less:             Specia            Comm                                     Total of
       Item        Share                          Capital           miscell            Surplu          Retain                shareho
                                                       Shares           l            on risk            Subtot        owners'
                             Prefe Perp                                                                        lders'
                   capita                Other reserve        aneous            s             ed Others
                                                          in         reserve         provisi              al           equity
                              rred etual                                                                       equity
                     l                     s      s           incom          reserve         profit
                             share bond                 stock           s              ons
                                                                 e

                   1,123
1. Balance at                                                                          159,80          3,898,       5,182,               5,231,2
                    ,384,                         1,454,            -475,4                                                   48,410,
the end of last                                                                        5,930.          626,17       795,07               05,089.
                   189.0                          191.59             09.25                                                     009.60
year                                                                                       34            7.99         9.67                    27
                         0

       Plus:
Changes in
accounting
policies


Correction of
previous errors


                                                                                                                    18,026
Consolidation                                     9,000,                                               9,026,                2,002,9 20,029,
                                                                                                                    ,682.6
of entities                                       000.00                                               682.67                   64.74 647.41
                                                                                                                         7
under common



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                                                 Interim Report 2021 of China Fangda Group Co., Ltd.


control


Others

                   1,123
2. Balance at               10,454            159,80         3,907,        5,200,             5,251,2
                    ,384,            -475,4                                         50,412,
the beginning               ,191.5            5,930.        652,86         821,76             34,736.
                   189.0              09.25                                         974.34
of current year                 9                34           0.66           2.34                 68
                       0

3. Change
amount       in the -35,1                     -64,28        93,370
                                     940,93                                -5,074, 73,461. -5,000,
current period     05,23                      0,649.         ,833.5
                                       3.00                                120.71       94 658.77
(“-“ for          8.00                         28              7
decrease)

                                                            147,78         148,72
(1) Total of                         940,93                                         73,461. 148,799
                                                             4,781.        5,714.
misc. incomes                          3.00                                             94 ,176.06
                                                                12             12

(2) Investment
                    -35,1                     -64,28                       -99,38
or decreasing                                                                                 -99,385
                   05,23                      0,649.                       5,887.
of capital by                                                                                 ,887.28
                    8.00                         28                            28
owners

1. Common           -35,1                     -64,28                       -99,38
                                                                                              -99,385
shares invested 05,23                         0,649.                       5,887.
                                                                                              ,887.28
by owners           8.00                         28                            28

2. Capital
contributed by
other equity
instrument
holders

3. Amount of
shares paid and
accounted as
owners' equity

4. Others

                                                            -54,41         -54,41
(3) Profit                                                                                    -54,413
                                                             3,947.        3,947.
allotment                                                                                     ,947.55
                                                                55             55

1. Provision of
surplus reserves

2. Common
risk provision

3. Distribution                                             -54,41         -54,41             -54,413



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                                                             Interim Report 2021 of China Fangda Group Co., Ltd.


to owners (or                                                            3,947.        3,947.             ,947.55
shareholders)                                                               55             55

4. Others

(4) Internal
carry-over of
owners' equity

1. Capitalizing
of capital
reserves (or
share capital)

2. Capitalizing
of surplus
reserves (or
share capital)

3. Surplus
reserves used to
cover losses

4. Retained
gain transferred
due to change
in set benefit
program

5. Other
miscellaneous
income

6. Others

(5) Special
reserves

1. Provided this
year

2. Used this
period

(6) Others

                   1,088
4. Balance at                  10,454                  95,525            4,001,        5,195,             5,246,2
                   ,278,                   465,52                                               50,486,
the end of this                 ,191.5                 ,281.0           023,69         747,64             34,077.
                   951.0                     3.75                                               436.28
period                              9                         6           4.23           1.63                 91
                      0


8. Statement of Change in Owners’ Equity (Parent Company)

Amount of the Current Term

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                                                                               Interim Report 2021 of China Fangda Group Co., Ltd.


                                                                                                                          In RMB

                                                                       H1 2021

                                Other equity tools                         Other
                                                               Less:                                                   Total of
      Item            Share Preferr Perpet       Capital           miscella Special Surplus Retaine
                                                         Shares in                                  Others             owners'
                      capital  ed    ual Others reserves            neous reserves reserve d profit
                                                          stock                                                         equity
                              share bond                           income

                      1,088,2                                                                          1,282,9
1. Balance at the                                    360,835. 42,748,5 -371,129            106,783,                   2,435,215,
                      78,951.                                                                          11,974.
end of last year                                          52     30.12         .71           436.96                       538.03
                          00                                                                               38

     Plus:
Changes in
accounting
policies


Correction of
previous errors

             Others

2. Balance at the 1,088,2                                                                              1,282,9
                                                     360,835. 42,748,5 -371,129            106,783,                   2,435,215,
beginning of          78,951.                                                                          11,974.
                                                          52     30.12         .71           436.96                       538.03
current year              00                                                                               38

3. Change
amount       in the
                      -14,404                                  -42,748, 1,509,10            -28,343, 26,418,           27,927,30
current period
                      ,724.00                                   530.12        2.69           806.12 197.73                  0.42
(“-“ for
decrease)

(1) Total of misc.                                                        1,509,10                     26,418,         27,927,30
incomes                                                                       2.69                     197.73               0.42

(2) Investment or
decreasing of         -14,404                                  -42,748,                     -28,343,
                                                                                                                            0.00
capital by            ,724.00                                   530.12                       806.12
owners

1. Common
                      -14,404                                  -42,748,                     -28,343,
shares invested                                                                                                             0.00
                      ,724.00                                   530.12                       806.12
by owners

2. Capital
contributed by
other equity                                                                                                                0.00
instrument
holders

3. Amount of                                                                                                                0.00


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                     Interim Report 2021 of China Fangda Group Co., Ltd.


shares paid and
accounted as
owners' equity

4. Others                                                         0.00

(3) Profit
                                                                  0.00
allotment

1. Provision of
                                                                  0.00
surplus reserves

2. Distribution to
owners (or                                    0.00                0.00
shareholders)

3. Others                                                         0.00

(4) Internal
carry-over of                                                     0.00
owners' equity

1. Capitalizing
of capital
                                                                  0.00
reserves (or
share capital)

2. Capitalizing
of surplus
                                                                  0.00
reserves (or
share capital)

3. Surplus
reserves used to                                                  0.00
cover losses

4. Retained gain
transferred due
                                                                  0.00
to change in set
benefit program

5. Other
miscellaneous                                                     0.00
income

6. Others                                                         0.00

(5) Special
                                                                  0.00
reserves

1. Provided this
                                                                  0.00
year

2. Used this
                                                                  0.00
period


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                                                                                    Interim Report 2021 of China Fangda Group Co., Ltd.


(6) Others                                                                                                                           0.00

4. Balance at the 1,073,8                                                                                  1,309,3
                                                     360,835.               1,137,97            78,439,6                       2,463,142,
end of this         74,227.                                                                                30,172.
                                                             52                    2.98            30.84                          838.45
period                   00                                                                                    11

Amount of the Previous Term
                                                                                                                                  In RMB

                                                                         H1 2020

                              Other equity tools                         Other
                                                              Less:                                                            Total of
       Item        Share Preferr Perpet       Capital          miscella Special Surplus Retained
                                                       Shares                                                        Others    owners'
                   capital ed     ual Others reserves           neous reserves reserve   profit
                                                      in stock                                                                  equity
                           share bond                          income

1. Balance at       1,123,
                                                   360,835               1,287,6             159,805 1,236,002                2,520,841,1
the end of last    384,18
                                                       .52                29.38              ,930.34    ,518.79                    03.03
year                  9.00

       Plus:
Changes in
                                                                                                                                     0.00
accounting
policies


Correction of                                                                                                                        0.00
previous errors


                                                                                                                                     0.00
Others

2. Balance at       1,123,
                                                   360,835               1,287,6             159,805 1,236,002                2,520,841,1
the beginning      384,18                                         0.00
                                                       .52                29.38              ,930.34    ,518.79                    03.03
of current year       9.00

3. Change
amount       in the -35,10
                                                                                            -64,280, -64,596,9                -163,982,79
current period      5,238.
                                                                                              649.28       04.01                     1.29
(“-“ for             00
decrease)

(1) Total of                                                                                           -10,182,9              -10,182,956
misc. incomes                                                                                              56.46                      .46

(2) Investment
                    -35,10
or decreasing of                                                                            -64,280,                          -99,385,887
                    5,238.
capital by                                                                                    649.28                                  .28
                       00
owners

1. Common           -35,10
                                                                                            -64,280,                          -99,385,887
shares invested     5,238.
                                                                                              649.28                                  .28
by owners              00


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                   Interim Report 2021 of China Fangda Group Co., Ltd.


2. Capital
contributed by
other equity                                                    0.00
instrument
holders

3. Amount of
shares paid and
                                                                0.00
accounted as
owners' equity

4. Others                                                       0.00

(3) Profit                           -54,413,9           -54,413,947
allotment                               47.55                    .55

1. Provision of
                                                                0.00
surplus reserves

2. Distribution
                                     -54,413,9           -54,413,947
to owners (or
                                        47.55                    .55
shareholders)

3. Others                                                       0.00

(4) Internal
carry-over of                                                   0.00
owners' equity

1. Capitalizing
of capital
                                                                0.00
reserves (or
share capital)

2. Capitalizing
of surplus
                                                                0.00
reserves (or
share capital)

3. Surplus
reserves used to                                                0.00
cover losses

4. Retained gain
transferred due
                                                                0.00
to change in set
benefit program

5. Other
miscellaneous                                                   0.00
income

6. Others                                                       0.00



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                                                                                 Interim Report 2021 of China Fangda Group Co., Ltd.


(5) Special
                                                                                                                                  0.00
reserves

1. Provided this
                                                                                                                                  0.00
year

2. Used this
                                                                                                                                  0.00
period

(6) Others                                                                                                                        0.00

4. Balance at       1,088,
                                                   360,835             1,287,6             95,525, 1,171,405               2,356,858,3
the end of this    278,95
                                                        .52              29.38              281.06     ,614.78                   11.74
period                1.00


III. General Information

        China Fangda Group Co., Ltd. (hereinafter referred to as "the Company") was approved in October 1995 by the General Office
of the Shenzhen Municipal People's Government with the letter of Shenfu Office (1995) No. 194, in the original "Shenzhen Fangda
Building Materials Co., Ltd." on the basis of the establishment of the fundraising method. The unified social credit code is:
91440300192448589C; registered address:         Fangda Technology Building, Keji South 12th Road, South District, High-tech
Industrial Park, Nanshan District, Shenzhen. Mr. Xiong Jianming is the legal representative.
        The Company issued foreign currency shares (B shares) and local currency shares (A shares) and listed in November 1995 and
April 1996 respectively in Shenzhen Stock Exchange. The Company received the Reply to the Non-public Share Issuance of Fangda
China Group Co., Ltd. (CSRC License [2016] No.825) to allow the Company to conduct non-public issuance of 32,184,931 A-shares
in June 2016. According to the 2016 Annual Profit Allocation Scheme, which was approved by the 2016 Annual Shareholders'
Congress, the Company has a total share capital of 789, 094, 836 shares as the basis and a capital reserve fund of 5 shares per 10
shares to all shareholders. The registered capital at the end of 2017 was RMB 1,183,642,254.00. The Company repurchased and
cancelled 28,160,568.00 B shares in August 2018, 32,097,497.00 B shares in January 2019, 35,105,238.00 B shares in May 2020,
14404724.00 B shares in July-September 2020 and cancelled in April 2021. The existing registered capital is RMB1,073,874,227.00
yuan.
        The Company has established a corporate governance structure that comprises shareholders’ meeting, board
of directors and supervisory committee. Currently, the Company sets up the President Office, Administrative
Department, HR Department, Enterprise Management Department, Financial Department, Audit and Supervisory
Department, Securities Department, Technology Innovation Department and IT Department and has established
subsidiaries including Fangda Decoration, Fangda Chuangzhi, Fangda New Material, Fangda Property and Fangda New
Energy.
        The business nature and main business operations of the Company and subsidiaries (“the Group”) include (1) production and
sales of curtain wall materials, design, production and installation of construction curtain walls; (2) assembly and production of
subway screen doors; (3) development and operation of real estate projects on land, of which rights have been obtained lawfully; (4)
R&D, installation and sales of PV devices, design and installation of PV power plants.
        Date of financial statement approval: This financial statement is approved by the Board of Directors of the Company on August
16, 2021.


The Company in the current period includes a total of 28 subsidiaries, of which 1 have been added this year and 2 have been reduced
this year. For details, please refer to "Note 6. Change of the scope of merger" and "Note 9. Rights and Interests in Other Subjects".




                                                                                                                                        81
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IV. Basis for the preparation of financial statements

1. Preparation basis

The Company prepares the financial statements based on continuous operation and according to actual transactions
and events, with figures confirmed and measured in compliance with the Accounting Standards for Business
Enterprises and other specific account standards, application guide and interpretations. The Company has also
disclosed related financial information according to the requirement of the Regulations of Information Disclosure No.15 – General
Provisions for Financial Statements (Revised in 2014) issued by the CSRC.


2. Continuous operation

The Company assessed the continuing operations capability of the Company for the 12 months from the end of the reporting period.
No matters were found that would affect the Company's ability to continue as a going concern. It is reasonable for the Company to
prepare financial statements based on continuing operations.


V. Significant Account Policies and Estimates

Specific accounting policy and estimate prompt:
The following major accounting policies and accounting estimates shall be formulated in accordance with the
accounting standards of the enterprise. Unmentioned operations are carried out in accordance with the relevant
accounting policies in the enterprise accounting standards.


1. Statement of compliance to the Enterprise Accounting Standard

These financial statements meet the requirements of the Accounting Standards for Business Enterprises and truly
and fully reflect the Company’s financial status, performance result, changes in shareholders’ equity and cash
flows.


2. Fiscal Period

The Company's fiscal year starts on January 1 and ends on December 31 of the Gregorian calendar.


3. Operation period

Our normal business cycle is one year


4. Bookkeeping standard money

The Company's bookkeeping standard currency is Renminbi, and overseas subsidiaries are based on the currency
of the main economic environment in which they operate.


5. Accounting treatment of the entities under common and different control

     (1) Consolidation of entities under common control


                                                                                                                                    82
                                                                         Interim Report 2021 of China Fangda Group Co., Ltd.


      The assets and liabilities acquired by the Company in a business combination are measured at the book value
of the combined party in the consolidated financial statements of the ultimate controlling party on the date
of combination. Among them, if the accounting policy adopted by the merger party is different from that adopted
by the Company before the merger, the accounting policy is unified based on the principle of importance, that
is, the book value of the assets and liabilities of the merger party is adjusted according to the accounting
policy of the Company. If there is a difference between the book value of the net assets acquired by the Company
in the business combination and the book value of the consideration paid, first adjust the balance of the capital
reserve (capital premium or equity premium), the balance of the capital reserve (capital premium or equity premium)
If it is insufficient to offset, the surplus reserve and undistributed profits will be offset in sequence.
      See Note V, 6 for the accounting treatment method of business combination under the same control through step-by-step
transaction.
      (2) Consolidation of entities under different control
      All identifiable assets and liabilities acquired by the Company during the merger shall be measured at its
fair value on the date of purchase. Among them, if the accounting policy adopted by the merger party is different
from that adopted by the Company before the merger, the accounting policy is unified based on the principle of
importance, that is, the book value of the assets and liabilities of the merger party is adjusted according to
the accounting policy of the Company. The merger cost of the Company on the date of purchase is greater than
the fair value of the assets and liabilities recognized by the purchaser in the merger, and is recognized as
goodwill. If the merger cost is less than the difference between the identifiable assets and the fair value of
the liabilities obtained by the purchaser in the enterprise merger, the merger cost and the fair value of the
identifiable assets and the liabilities obtained by the purchaser in the enterprise merger are reviewed, and
the merger cost is still less than the fair value of the identifiable assets and liabilities obtained by the
purchaser after the review, the difference is considered as the profit and loss of the current period of the
merger.
      See Note V, 6 for the accounting treatment method of business combination under the same control through step-by-step
transaction.
      (3) Treatment of related transaction fee in enterprise merger
      Agency expenses and other administrative expenses such as auditing, legal consulting, or appraisal services
occurred relating to the merger of entities are accounted into current income account when occurred. The
transaction fees of equity certificates or liability certificates issued by the purchaser for payment for the
acquisition are accounted at the initial amount of the certificates.




6. Preparation of Consolidated Financial Statements

      (1) Determination of consolidation scope
      The consolidated scope of the consolidated financial statements is determined on a control basis and includes
not only subsidiaries determined on the basis of voting rights (or similar voting rights) themselves or in
conjunction with other arrangements, but also structured subjects determined on the basis of one or more
contractual arrangements.
      Control means the power possessed by the Company on invested entities to share variable returns by
participating in related activities of the invested entities and to impact the amount of the returns by using
the power. The subsidiary company is the subject controlled by the Company (including the enterprise, the divisible
part of the invested unit and the structured subject controlled by the enterprise, etc.). The structured subject



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is the subject which is not designed to determine the controlling party by taking the voting right or similar
right as the decisive factor.
      (2) Preparation of Consolidated Financial Statements
      The Company prepares consolidated financial statements based on the financial statements of itself and its
subsidiaries and based on other relevant information.
      The Company compiles consolidated financial statements, regards the whole enterprise group as an accounting
entity, reflects the overall financial status, operating results and cash flow of the enterprise group according
to the confirmation, measurement and presentation requirements of the relevant enterprise accounting standards,
and the unified accounting policy and accounting period.
      ① Merge the assets, liabilities, owner's rights and interests, income, expenses and cash flow of parent
company and subsidiary company.
      ② Offset the long-term equity investment of the parent company to the subsidiary company and the share
of the parent company in the ownership rights of the subsidiary company.
      ③ Offset the influence of internal transaction between parent company, subsidiary company and subsidiary
company. If an internal transaction indicates that the relevant asset has suffered an impairment loss, the part
of the loss shall be confirmed in full.
      ④ adjust the special transaction from the angle of enterprise group.
      (3) Processing of subsidiaries during the reporting period
      ① Increase of subsidiaries or business
      A. Subsidiary or business increased by business combination under the same control
      (a) When preparing the consolidated balance sheet, adjust the opening number of the consolidated balance sheet and adjust the
related items of the comparative statement. The same report entity as the consolidated balance sheet will exist from the time of the
final control party.
      (b) When preparing the consolidated cash flow statement, the cash flows of the subsidiary and the business combination from
the beginning of the current period to the end of the reporting period are included in the consolidated cash flow statement, and the
related items of the comparative statement are adjusted, which is regarded as the combined report body since the final The controller
has been there since the beginning of control.
      (c) When preparing the consolidated cash flow statement, the cash flows of the subsidiary and the business combination from
the beginning of the current period to the end of the reporting period are included in the consolidated cash flow statement, and the
related items of the comparative statement are adjusted, which is regarded as the combined report body since the final The controller
has been there since the beginning of control.
      B. Subsidiaries or businesses added by business combinations not under the same control
      (a) When preparing the consolidated balance sheet, the opening number of the consolidated balance sheet is not adjusted.
      (b) When preparing the consolidated profit statement, the income, expense and profit of the subsidiary company and the
business Purchase date and Closing balance shall be included in the consolidated profit statement.
      (c) When the consolidated cash flow statement is prepared, the cash flow from the purchase date of the subsidiary to the end of
the reporting period is included in the consolidated cash flow statement.
      ② Disposal of subsidiaries or business
      (A) When preparing the consolidated balance sheet, the opening number of the consolidated balance sheet is not adjusted.
      B. When preparing the consolidated profit statement, the income, expense and profit of the subsidiary company and the
business opening and disposal date shall be included in the consolidated profit statement.
      C. When the consolidated cash flow statement is prepared, the cash flow from the Beginning of the period of the subsidiary to
the end of the reporting period is included in the consolidated cash flow statement.
      (4) Special considerations in consolidation offsets



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      ① The long-term equity investment held by a subsidiary company shall be regarded as the inventory shares of the Company as
a subtraction of the owner's rights and interests, which shall be listed under the item of "subtraction: Stock shares" under the item of
owner's rights and interests in the consolidated balance sheet.
      The long-term equity investments held by the subsidiaries are offset by the shares of the shareholders of
the subsidiaries.
      ② The "special reserve" and "general risk preparation" projects, because they are neither real capital (or share capital) nor
capital reserve, but also different from the retained income and undistributed profits, are restored according to the ownership of the
parent company after the long-term equity investment is offset by the ownership rights and interests of the subsidiary company.
      ③ If there is a temporary difference between the book value of assets and liabilities in the consolidated
balance sheet and the taxable basis of the taxpayer due to the offset of the unrealized internal sales gain or
loss, the deferred income tax asset or the deferred income tax liability is confirmed in the consolidated balance
sheet, and the income tax expense in the consolidated profit statement is adjusted, with the exception of the
deferred income tax related to the transaction or event directly included in the owner's equity and the merger
of the enterprise.
      ④ The unrealized internal transaction gains and losses incurred by the Company from selling assets to subsidiaries shall be
fully offset against the "net profit attributable to the owners of the parent company". The unrealized internal transaction gains and
losses arising from the sale of assets by the subsidiary to the Company shall be offset between the “net profit attributable to the
owners of the parent company” and the “minority shareholder gains and losses” in accordance with the Company’s distribution
ratio to the subsidiary. The unrealized internal transaction gains and losses arising from the sale of assets between subsidiaries shall
be offset between the "net profit attributable to the owners of the parent company" and the "minority shareholders' gains and losses"
in accordance with the Company's distribution ratio to the seller's subsidiary .
      ⑤ If the current loss shared by the minority shareholders of the subsidiary exceeds the share of the minority
shareholders in the owner ’s equity of the subsidiary at the beginning of the period, the balance should still
be offset against the minority shareholders ’equity.
      (5) Accounting treatment of special transactions
      ① Purchase minority shareholders' equity
      The Company purchases the shares of the subsidiaries owned by the minority shareholders of the subsidiaries.
In the individual financial statements, the investment costs of the newly acquired long-term investments of the
minority shares shall be measured at the fair value of the price paid. In the consolidated financial statements,
the difference between the newly acquired long-term equity investment due to the purchase of minority equity
and the share of net assets that should be continuously calculated by the subsidiary since the purchase date
or the merger date should be adjusted according to the new shareholding ratio. The product (capital premium or
equity premium), if the capital reserve is insufficient to offset, the surplus reserve and undistributed profits
are offset in turn.
      ② Step-by-step acquisition of control of the subsidiary through multiple transactions
      A. Enterprise merger under common control through multiple transactions
      On the date of the merger, the Company determines the initial investment cost of the long-term equity
investment in the individual financial statements based on the share of the subsidiary ’s net assets that should
be enjoyed after the merger in the final controller ’s consolidated financial statements; the initial investment
cost and the The difference between the book value of the long-term equity investment before the merger plus
the book value of the consideration paid for new shares acquired on the merger date, the capital reserve (capital
premium or equity premium) is adjusted, and the capital reserve (capital premium or equity premium) is insufficient
to offset Reduced, in turn offset the surplus reserve and undistributed profits.
      In consolidated financial statements, assets and liabilities obtained by the merging party from the merged party should be



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measured at the book value in the final controlling party’s consolidated financial statements other than the adjustment made due to
differences in accounting policies; adjust the capital surplus (share premium) according to the difference between the initial
investment cost and the book value of the held investment before merger plus the book value of the consideration paid on the merger
date. Where the capital surplus falls short, the retained income should be adjusted.
     If the merging party holds the equity investment before acquiring the control of the merged party and is
accounted for according to the equity method, the date of acquiring the original equity and the merging party
and the merged party are in the same party's final control from the later date to the merger date The relevant
gains and losses, other comprehensive income and other changes in owner's equity have been confirmed between
them, and the retained earnings at the beginning of the comparative statement period should be offset separately.
     B. Enterprise merger not under common control through multiple transactions
     On the merger day, in individual financial statements, the initial investment cost of the long-term equity
investment on the merger day is based on the book value of the long-term equity investment previously held plus
the sum of the additional investment costs on the merger day.
     In the consolidated financial statements, the equity of the purchaser held prior to the date of purchase
is revalued according to the fair value of the equity at the date of purchase, and the difference between the
fair value and its book value is credited to the current investment income; If the shares held by the purchaser
prior to the date of purchase involve other consolidated gains under the equity law accounting, the other
consolidated gains related thereto shall be converted to the current gains on the date of purchase, with the
exception of the other consolidated gains arising from the remeasurement of the net assets or net liabilities
of the merged party. The Company disclosed in the notes the fair value of the equity of the purchased party held
before the purchase date and the amount of related gains or losses remeasured according to the fair value.
     (3) The Company disposes of long-term equity investment in subsidiaries without losing control
     The parent company partially disposes of the long-term equity investment in the subsidiary company without
losing control. In the consolidated financial statements, the disposal price corresponds to the disposal of the
long-term equity investment. The difference between the shares is adjusted for the capital reserve (capital
premium or equity premium). If the capital reserve is insufficient to offset, the retained earnings are adjusted.
     ④ The Company disposes of long-term equity investment in subsidiaries and loses control
     A. One transaction disposition
     If the Company loses control over the Invested Party due to the disposal of part of the equity investment,
it shall remeasure the remaining equity according to its fair value at the date of loss of control when compiling
the consolidated financial statement. The sum of the consideration obtained from the disposal of equity and the
fair value of the remaining equity minus the difference between the share of the original subsidiary 's net assets
that should be continuously calculated from the purchase date or the merger date, calculated as the loss of control
The investment income of the current period.
     Other comprehensive income and other owner's equity changes related to the equity investment of the atomic
company are transferred to the current profit and loss when the control is lost, except for other comprehensive
income arising from the remeasurement of the net benefits or net assets of the defined benefit plan by the
investee. .
     B. Multi-transaction step-by-step disposition
     In consolidated financial statements, you should first determine whether a step-by-step transaction is a "blanket transaction".
     If the step-by-step transaction does not belong to a "package deal", in the individual financial statements, for each transaction
before the loss of control of the subsidiary, the book value of the long-term equity investment corresponding to each disposal of
equity is carried forward, the price received and the disposal The difference between the book value of the long-term equity
investment is included in the current investment income; in the consolidated financial statements, it should be handled in accordance



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with the relevant provisions of "the parent company disposes of the long-term equity investment in the subsidiary without losing
control."
      If a step-by-step transaction belongs to a "blanket transaction", the transaction shall be treated as a transaction that disposes of
the subsidiary and loses control; In individual financial statements, the difference between each disposal price before the loss of
control and the book value of the long-term equity investment corresponding to the equity being disposed of is first recognized as
other consolidated gains and then converted to the current loss of control at the time of the loss of control; In the consolidated
financial statements, for each transaction prior to the loss of control, the difference between the disposition of the price and the
disposition of the investment corresponding to the share in the net assets of the subsidiary shall be recognized as other consolidated
gains and shall, at the time of the loss of control, be transferred to the loss of control for the current period.
      Where the terms, conditions, and economic impact of each transaction meet one or more of the following conditions, usually
multiple transactions are treated as a "package deal":
      (a) These transactions were concluded at the same time or in consideration of mutual influence.
      (b) These transactions can only achieve the business result as a whole;
      (c) The effectiveness of one transaction depends the occurance of at least another transaction;
      (d) A single transaction is not economic and is economic when considered together with other transactions.
      (5) Proportion of minority shareholders in factor companies who increase capital and dilute ownership of
parent companies
Proportion of Others ( minority shareholders in factor companies who increase capital , dilute Subsidiaries
of parent companies. In the consolidated financial statements, the share of the parent company in the net book
assets of the former subsidiary of the capital increase is calculated according to the share ratio of the parent
company before the capital increase, the difference between the share and the net book assets of the latter
subsidiary after the capital increase is calculated according to the share ratio of the parent company, the capital
reserve (capital premium or capital premium), the capital reserve (capital premium or capital premium) is not
offset, and the retained income is adjusted.


7. Recognition of cash and cash equivalents

Cash refers to cash in stock and deposits that can be used for payment at any time. Cash equivalents refer to
investments with a short holding period (generally referring to expiry within three months from the date of
purchase), strong liquidity, easy to convert to a known amount of cash, and little risk of value change.


8.Foreign exchange business and foreign exchange statement translation

      (1) Methods for determining conversion rates in foreign currency transactions
      When the Company's foreign currency transactions are initially confirmed, they will be converted into the
bookkeeping standard currency at the spot exchange rate on the transaction date.
      (2) Methods of conversion of foreign currency currency currency items on balance sheet days
      At the balance sheet date, foreign currency items are translated on the spot exchange rate of the balance
sheet date. The exchange differences caused by the difference in exchange rates on the balance sheet date and
initial recognizing date or previous balance sheet date are included in the current profits and losses.
Non-monetary items accounted in foreign currency and on historical costs are exchanged with the spot exchange
rate on the transaction date. Non-monetary items accounted in foreign currency and on fair value are exchanged
with the spot exchange rate on the determination date of the fair value. The exchange difference between the
accounting standard-currency amount and the original accounting standard-currency amount are included in the



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current profits and losses.
     (3) Foreign currency statement conversion method
     Prior to the conversion of the financial statements of an enterprise's overseas operations, the accounting
period and policy of the overseas operations should be adjusted to conform to the accounting period and policy
of the enterprise. The financial statements of the corresponding currency (other than the functional currency)
should be prepared according to the adjusted accounting policy and the accounting period. The financial statements
of the overseas operations should be converted according to the following methods:
     ① The assets and liabilities items in the balance sheet are translated at the spot exchange rate on the balance sheet date. Except
for the "undistributed profits" items, the owner's equity items are translated at the spot exchange rate when they occur.
     ② The income and expense items in the profit statement are converted at the spot exchange rate on the
transaction date or the approximate exchange rate of the spot exchange rate.
     ③ The foreign currency cash flow and the foreign subsidiary's cash flow are converted using the immediate
exchange rate or the approximate exchange rate at the date of the cash flow. The impact of exchange rate changes
on cash should be used as an adjustment item and presented separately in the cash flow statement.
     ④ During the preparation of the consolidated financial statements, the resulting foreign currency financial statement
conversion variance is presented separately under the owner's equity item in the consolidated balance sheet.
When foreign operations are disposed of and the control rights are lost, the difference in foreign currency
statements related to the overseas operations that are listed in the shareholders' equity items in the balance
sheet is transferred to the profit or loss for the current period, either in whole or in proportion to the disposal
of the foreign operations.


9. Financial instrument

     Financial instrument refers to a company’s financial assets and contracts that form other units of financial
liabilities or equity instruments.
     (1) Recognition and de-recognition of financial instrument
     The Company recognizes a financial asset or liability when it becomes one party in the financial instrument
contract.
     Financial asset is derecognized when:
     ① The contractual right to receive the cash flows of the financial assets is terminated;
     ② The financial asset is transferred and meets the following derecognition condition.
     If the current obligation of a financial liability (or part of it) has been discharged, the Company
derecognises the financial liability (or part of the financial liability). When the Company (borrower) and lender
enter into an agreement to replace the original financial liabilities by undertaking new financial liabilities
and the contract terms for the new financial liabilities are essentially different from those for the original
one, the original financial liabilities will be derecognized and new financial liabilities will be recognized.
Where the Company makes substantial amendments to the contract terms of the original financial liability (or
part thereof), it shall terminate the original financial liability and confirm a new financial liability in
accordance with the amended terms.
     Financial asset transactions in regular ways are recognized and de-recognized on the transaction date. The
conventional sale of financial assets means the delivery of financial assets in accordance with the contractual
terms and conditions, at the time set out in the regulations or market practices. Transaction date refers to
the date when the Company promises to buy or sell financial assets.
     (2) Classification and subsequent measurement of financial assets


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     At initial recognition, the Company classifies financial assets into the following three categories based
on the business model of managing financial assets and the contractual cash flow characteristics of financial
assets: financial assets measured at amortized cost are measured at fair value and their changes are included
in other financial assets with current profit and loss and financial assets measured at fair value through profit
or loss. Unless the Company changes the business model for managing financial assets, in this case, all affected
financial assets are reclassified on the first day of the first reporting period after the business model changes,
otherwise the financial assets may not be initially confirmed.
     Financial assets are measured at the fair value at the initial recognition. For financial assets measured
at fair value with variations accounted into current income account, related transaction expenses are accounted
into the current income. For other financial assets, the related transaction expenses are accounted into the
initial recognized amounts. Bills receivable and accounts receivable arising from the sale of commodities or
the provision of labor services that do not contain or do not consider significant financing components, the
Company performs initial measurement according to the transaction price defined by the income standard.
     The subsequent measurement of financial assets depends on their classification:
     ① Financial assets measured at amortized cost
     Financial assets that meet the following conditions at the same time are classified as financial assets
measured at amortized cost: The Company ’s business model for managing this financial asset is to collect
contractual cash flows as its goal; the contract terms of the financial asset stipulate that Cash flow is only
the payment of principal and interest based on the outstanding principal amount. For such financial assets, the
actual interest rate method is used for subsequent measurement according to the amortized cost. The gains or
losses arising from the termination of recognition, amortization or impairment based on the actual interest rate
method are included in the current profit and loss.
     ② Financial assets measured at fair value and whose changes are included in other comprehensive income
     Financial assets that meet the following conditions at the same time are classified as financial assets
measured at fair value and their changes are included in other comprehensive income: The Company's business model
for managing this financial asset is to both target the collection of contractual cash flows and the sale of
financial assets. Objective; The contractual terms of the financial asset stipulate that the cash flow generated
on a specific date is only for the payment of principal and interest based on the outstanding principal amount.
For such financial assets, fair value is used for subsequent measurement. Except for impairment losses or gains
and exchange gains and losses recognized as current gains and losses, changes in the fair value of such financial
assets are recognized as other comprehensive income. Until the financial asset is derecognized, its accumulated
gains or losses are transferred to current gains and losses. However, the relevant interest income of the financial
asset calculated by the actual interest rate method is included in the current profit and loss.
     The Company irrevocably chooses to designate a portion of non-tradable equity instrument investment as a
financial asset measured at fair value and whose variation is included in other consolidated income. Only the
relevant dividend income is included in the current profit and loss, and the variation of fair value is recognized
as other consolidated income.
     ③ Financial assets measured at fair value with variations accounted into current income account
     The above financial assets measured at amortized cost and other financial assets measured at fair value
and whose changes are included in other comprehensive income are classified as financial assets measured at fair
value and whose changes are included in the current profit and loss. For such financial assets, fair value is
used for subsequent measurement, and all changes in fair value are included in current profit and loss.
     (3) Classification and measurement of financial liabilities
     The Company classifies financial liabilities into financial liabilities measured at fair value and their



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changes included in the current profit and loss, loan commitments and financial guarantee contract liabilities
for loans below market interest rates, and financial liabilities measured at amortized cost.
     The subsequent measurement of financial liabilities depends on their classification:
     ① Financial liabilities measured at fair value with variations accounted into current income account
     Such financial liabilities include transactional financial liabilities (including derivatives that are
financial liabilities) and financial liabilities designated as at fair value through profit or loss. After the
initial recognition, the financial liabilities are subsequently measured at fair value. Except for the hedge
accounting, the gains or losses (including interest expenses) are recognized in profit or loss. However, for
the financial liabilities designated as fair value and whose variations are included in the profits and losses
of the current period, the variable amount of the fair value of the financial liability due to the variation
of credit risk of the financial liability shall be included in the other consolidated income. When the financial
liability is terminated, the cumulative gains and losses previously included in the other consolidated income
shall be transferred out of the other consolidated income and shall be included in the retained income.
     ② Loan commitments and financial security contractual liabilities
     A loan commitment is a promise that the Company provides to customers to issue loans to customers with
established contract terms within the commitment period. Loan commitments are provided for impairment losses
based on the expected credit loss model.
     A financial guarantee contract refers to a contract that requires the Company to pay a specific amount of
compensation to the contract holder who suffered a loss when a specific debtor is unable to repay the debt in
accordance with the original or modified debt instrument terms. Financial guarantee contract liabilities are
subsequently measured based on the higher of the loss reserve amount determined in accordance with the principle
of impairment of financial instruments and the initial recognition amount after deducting the accumulated
amortization amount determined in accordance with the revenue recognition principle.
     ③ Financial liabilities measured at amortized cost
     After initial recognition, other financial liabilities are measured at amortized cost using the effective
interest method.
     Except in special circumstances, financial liabilities and equity instruments are distinguished according
to the following principles:
     ① If the Company cannot unconditionally avoid delivering cash or other financial assets to fulfill a
contractual obligation, the contractual obligation meets the definition of financial liability. While some
financial instruments do not explicitly contain terms and conditions for the delivery of cash or other financial
assets, they may indirectly form contractual obligations through other terms and conditions.
     If a financial instrument is required to be settled with or can be settled with the Company's own equity
instruments, the Company's own equity instrument used to settle the instrument needs to be considered as a
substitute for cash or other financial assets or for the holder of the instrument to enjoy the remaining equity
in the assets after all liabilities are deducted. If it is the former, the instrument is the financial liabilities
of the issuer; if it is the latter, the instrument is the equity instrument of the issuer. In some cases, a financial
instrument contract provides that the Company shall or may use its own instrument of interest, in which the amount
of a contractual right or obligation is equal to the amount of the instrument of its own interest which may be
acquired or delivered multiplied by its fair value at the time of settlement, whether the amount of the contractual
right or obligation is fixed or is based entirely or in part on a variation of a variable other than the market
price of the instrument of its own interest, such as the rate of interest, the price of a commodity or the price
of a financial instrument, the contract is classified as a financial liability.
     (4) Derivative financial instruments and embedded derivatives



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      Derivative financial instruments are initially measured at the fair value of the day when the derivative
transaction contract is signed, and are subsequently measured at their fair values. Derivative financial
instruments with a positive fair value are recognized as asset, and instruments with a negative fair value are
recognized as liabilities.
      The gains and losses arising from the change in fair value of derivatives are directly included in the profits
and losses of the current period, except that the part of the cash flow that is valid in the hedge is included
in the other consolidated income and transferred out when the hedged item affects the gain and loss of the current
period.
      For a hybrid instrument containing an embedded derivative instrument, if the principal contract is a
financial asset, the hybrid instrument as a whole applies the relevant provisions of the financial asset
classification. If the main contract is not a financial asset, and the hybrid instrument is not measured at fair
value and its changes are included in the current profit and loss for accounting, the embedded derivative does
not have a close relationship with the main contract in terms of economic characteristics and risks, and it is
If the instruments with the same conditions and exist separately meet the definition of derivative instruments,
the embedded derivative instruments are separated from the mixed instruments and treated as separate derivative
financial instruments. If the fair value of the embedded derivative on the acquisition date or the subsequent
balance sheet date cannot be measured separately, the hybrid instrument as a whole is designated as a financial
asset or financial liability measured at fair value and whose changes are included in the current profit or loss.
      (5) Impairment of financial instruments
      The Company shall confirm the preparation for loss on the basis of expected credit loss for financial assets
measured at amortization costs, creditor's rights investments measured at fair value, contractual assets, leasing
receivables, loan commitments and financial guarantee contracts, etc.
      ① Measurement of expected credit losses of accounts receivable
      The expected credit loss refers to the weighted average of the credit losses of financial instruments that
are weighted by the risk of default. Credit loss refers to the difference between all contractual cash flows
receivable from the contract and all cash flows expected to be received by the Company at the original actual
interest rate, that is, the present value of all cash shortages. Among them, the financial assets which have
been purchased or born by the Company shall be discounted according to the actual rate of credit adjustment of
the financial assets.
      The expected lifetime credit loss is the expected credit loss due to all possible default events during
the entire expected life of the financial instrument.
      Expected credit losses in the next 12 months are expected to result from possible defaults in financial instruments within 12
months after the balance sheet date (or estimated duration of financial instruments if the expected duration is less than 12 months)
Credit losses are part of the expected lifetime credit loss.
      On each balance sheet day, the Company measures the expected credit losses of financial instruments at
different stages. Where the credit risk has not increased significantly since the initial confirmation of the financial instrument, it
is in the first stage. The Company measures the preparation for loss according to the expected credit loss in the next 12 months.
Where the credit risk has increased significantly since the initial confirmation but the credit impairment has not occurred, the
financial instrument is in the second stage. Where a credit impairment has occurred since the initial confirmation of the financial
instrument, it shall be in the third stage, and the Company shall prepare for measuring the expected credit loss of the whole survival
period of the instrument.
      For financial instruments with low credit risk on the balance sheet date, the Company assumes that the credit risk has not
increased significantly since the initial recognition, and measures the loss provision based on the expected credit losses in the next 12
months.



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     For financial instruments that are in the first and second stages and with lower credit risk, the Company
calculates interest income based on their book balances and actual interest rates without deduction for impairment
provision. For financial instruments in the third stage, interest income is calculated based on the amortized
cost and the actual interest rate after the book balance minus the provision for impairment.
     Regarding bills receivable, accounts receivable and financing receivables, regardless of whether there is
a significant financing component, the Company measures the loss provision based on the expected credit losses
throughout the duration.
     A Accounts receivable/contract assets
     Where there is objective evidence of impairment, as well as other receivable instruments, receivables, other
receivables, receivables financing and long-term receivables applicable to individual assessments, separate
impairment tests are performed to confirm expected credit losses and prepare individual impairment. For notes
receivable, accounts receivable, other receivables, financing of receivables, long-term receivables, and
contract assets for which there is no objective evidence of impairment, or when individual financial assets cannot
be assessed at a reasonable cost, the Company divides bills receivable, accounts receivable, other receivables,
receivable financing, long-term receivables, and contract assets into several combinations based on credit risk
characteristics, and calculates expected credit losses on the basis of the combination. The basis for determining
the combination is as follows:
     The basis for determining the combination of notes receivable is as follows:
     Notes Receivable Combination1 Commercial Acceptance Bill
     Notes Receivable Combination1 Commercial Acceptance Bill
     For Notes receivable divided into portfolios, the Company refers to historical credit loss experience,
combined with current conditions and predictions of future economic conditions, and calculates through default
risk exposure and expected credit loss rate within the next 12 months or the entire duration Expected credit
losses.
     The basis for determining the combination of accounts receivable is as follows:
     Accounts receivable combination 1 Accounts receivable business
     Accounts receivable combination 2 Real estate receivable business
     Accounts receivable combination 3 Others receivable business
     Other receivable portfolio 4 Receivables from related parties within the scope of consolidation
     For the accounts receivable divided into a combination, the Company refers to the historical credit loss
experience, combined with the current situation and the forecast of the future economic situation, compiles the
account receivable age and the whole expected credit loss rate table, and calculates the expected credit loss.
     The basis for determining the combination of other receivables is as follows:
     Other receivable portfolio 1 Interest receivable
     Portfolio of other receivables 2 Dividends receivable
     Other combinations of receivables 3 Deposit and margin receivable
     Other receivable portfolio 4 Receivable advances
     Combination of other receivables 5 Value-added tax receivable is increased and refunded
     Other receivable portfolio 6 Receivables from related parties within the scope of consolidation
     Other receivables portfolio 7 Other receivables
     For other receivables divided into portfolios, the Company refers to historical credit loss experience, combined with current
conditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit loss rate
within the next 12 months or the entire duration Expected credit losses.
     The basis for determining the combination of receivables financing is as follows:



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      Receivables financing portfolio 1 bank acceptance bill
      For Notes receivable divided into portfolios, the Company refers to historical credit loss experience,
combined with current conditions and predictions of future economic conditions, and calculates through default
risk exposure and expected credit loss rate within the next 12 months or the entire duration Expected credit
losses.
      The basis for determining the portfolio of contract assets is as follows:
      Contract assets portfolio 1 conditional collection right of sales
      Contract assets portfolio 2 Completed and unsettled project not meeting collection conditions
      Contract assets portfolio 3 Quality guarantee deposit not meeting collection conditions
      For contract assets divided into portfolios, the Company refers to historical credit loss experience,
combined with current conditions and predictions of future economic conditions, and calculates through default
risk exposure and expected credit loss rate within the next 12 months or the entire duration Expected credit
losses.
      Other debt investment
      For other receivables divided into portfolios, the Company refers to historical credit loss experience, combined with current
conditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit loss rate
within the next 12 months or the entire duration Expected credit losses.
      ② Lower credit risk
      If the risk of default on financial instruments is low, the borrower’s ability to meet its contractual
cash flow obligations in the short term is strong, and even if the economic situation and operating environment
are adversely changed over a long period of time, it may not necessarily reduce the receivables' performance
of their contractual cash. The ability of the flow obligation, the financial instrument is considered to have
a lower credit risk.
      ③ Significant increase in credit risk
      The Company compares the default probability of the financial instrument during the expected lifetime
determined by the balance sheet date with the default probability of the expected lifetime during the initial
confirmation to determine the relative probability of the default probability of the financial instrument during
the expected lifetime Changes to assess whether the credit risk of financial instruments has increased
significantly since initial recognition.
      In determining whether the credit risk has increased significantly since the initial recognition, the Company
considers reasonable and evidenced information, including forward-looking information, that can be obtained
without unnecessary additional costs or effort. The information considered by the Company includes:
      A. Significant changes in internal price indicators resulting from changes in credit risk;
      B. Adverse changes in business, financial or economic conditions that are expected to cause significant changes in the debtor’s
ability to perform its debt service obligations;
      C. Whether the actual or expected operating results of the debtor have changed significantly; whether the regulatory, economic
or technical environment of the debtor has undergone significant adverse changes;
      D. Whether there is a significant change in the value of the collateral used as debt collateral or the guarantee provided by a third
party or the quality of credit enhancement. These changes are expected to reduce the debtor’s economic motivation for
repayment within the time limit specified in the contract or affect the probability of default;
      E. Whether there is a significant change in the economic motivation that is expected to reduce the debtor's repayment according
to the contractual deadline;
      F. Anticipated changes to the loan contract, including whether the expected violation of the contract may result in the
exemption or revision of contract obligations, granting interest-free periods, rising interest rates, requiring additional collateral or



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guarantees, or making other changes to the contractual framework of financial instruments change;
      G. Whether the expected performance and repayment behavior of the debtor has changed significantly;
      H. Whether the contract payment is overdue for more than (including) 30 days.
      Based on the nature of financial instruments, the Company assesses whether credit risk has increased
significantly on the basis of a single financial instrument or combination of financial instruments. When
conducting an assessment based on a combination of financial instruments, the Company can classify financial
instruments based on common credit risk characteristics, such as overdue information and credit risk ratings.
      If the overdue period exceeds 30 days, the Company has determined that the credit risk of financial instruments has increased
significantly. Unless the Company does not have to pay excessive costs or efforts to obtain reasonable and warranted information, it
proves that although it has exceeded the time limit of 30 days agreed upon in the Contract, credit risks have not increased
significantly since the initial confirmation.
      ④ Financial assets with credit impairment
      The Company assesses on the balance sheet date whether financial assets measured at amortized cost and credit
investments measured at fair value and whose changes are included in other comprehensive income have undergone
credit impairment. When one or more events that adversely affect the expected future cash flows of a financial
asset occur, the financial asset becomes a financial asset that has suffered a credit impairment. Evidence that
credit impairment has occurred in financial assets includes the following observable information:
      Major financial difficulties have occurred to the issuer or the debtor; Breach of contract by the debtor,
such as payment of interest or default or overdue of principal; (B) The concession that the debtor would not
make under any other circumstances for economic or contractual considerations relating to the financial
difficulties of the debtor; The debtor is likely to be bankrupt or undertake other financial restructuring; The
financial difficulties of the issuer or debtor lead to the disappearance of the active market for the financial
asset; To purchase or generate a financial asset at a substantial discount, which reflects the fact that a credit
loss has occurred.
      ⑤ Presentation of expected credit loss measurement
      In order to reflect the changes in the credit risk of financial instruments since the initial recognition,
the Company re-measures the expected credit losses on each balance sheet date, and the increase or reversal of
the loss provision resulting therefrom is included as an impairment loss or gain. Current profit and loss. For
financial assets measured at amortized cost, the loss allowance offsets the book value of the financial asset
listed on the balance sheet; for debt investments measured at fair value and whose changes are included in other
comprehensive income, the Company Recognition of its loss provisions in gains does not offset the book value
of the financial asset.
      ⑥ Canceled
      If it is no longer reasonably expected that the contract cash flow of the financial assets will be fully
or partially recovered, the book balance of the financial assets will be directly reduced. Such write-off
constitute the derecognition of related financial assets. This usually occurs when the Company determines that
the debtor has no assets or sources of income that generate sufficient cash flow to cover the amount that will
be written down.
      If the financial assets that have been written down are recovered in the future, the reversal of the impairment
loss is included in the profit or loss of the current period.
      (6) Transfer of financial assets
      The transfer of financial assets refers to the following two situations:
      A. Transfer the contractual right to receive cash flow of financial assets to another party;
      B. Transfers the financial assets to the other party in whole or in part, but reserves the contractual right to collect the cash flow



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of the financial assets and undertakes the contractual obligation to pay the collected cash flow to one or more recipients.
     ① De-identification of transferred financial assets
     Those who have transferred almost all risks and rewards in the ownership of financial assets to the transferee,
or have neither transferred nor retained almost all the risks and rewards in the ownership of financial assets,
but have given up control of the financial assets, terminate the confirmation The financial asset.
     In determining whether control over the transferred financial asset has been waived, the actual capacity
of the transferor to sell the financial asset is determined. If the transferor is able to sell the transferred
financial assets wholly to a third party that does not have a relationship with them, and has no additional
conditions to limit the sale, it indicates ds has waived control over the financial assets.
     The Company pays attention to the essence of financial asset transfer when judging whether financial asset
transfer meets the condition of financial asset termination.
     If the overall transfer of financial assets meets the conditions for termination of confirmation, the
difference between the following two amounts is included in the current profit and loss:
     A. Continuing identification of transferred Book value;
     B. The sum of the amount received as a result of the transfer and the amount accrued as a result of the change in the fair value
of the transfer in respect of the termination recognized portion of the amount previously charged directly to the other consolidated
proceeds (the financial assets involved in the transfer are those classified in accordance with Article 18 of Enterprise Accounting
Standard No. 22 - Financial Instruments Recognition and Measurement as measured by the fair value and whose change is charged to
the other consolidated proceeds).
     If the partial transfer of financial assets meets the conditions for derecognition, the book value of the
entire transferred financial assets will be included in the derecognized part and the unterminated part (in this
case, the retained service assets are regarded as part of the continued recognition of financial assets) Between
them, they are apportioned according to their respective relative fair values on the transfer date, and the
difference between the following two amounts is included in the current profit and loss:
     A. Termination of the book value of the recognized portion on the date of derecognition;
     B. The sum of the amount received as a result of the transfer and the amount accrued as a result of the change in the fair value
of the transfer in respect of the termination recognized portion of the amount previously charged to the other consolidated proceeds
(the financial assets involved in the transfer are those classified in accordance with Article 18 of Enterprise Accounting Standard No.
22 - Financial Instruments Recognition and Measurement as measured by the fair value and whose change is charged to the other
consolidated proceeds).
     ② Continue to be involved in the transferred financial assets
     If neither transfer nor retain almost all the risks and rewards of the ownership of financial assets, and
have not given up control of the financial assets, the relevant financial assets should be confirmed according
to the extent of their continued involvement in the transferred financial assets, and the relevant liabilities
should be recognized accordingly.
     The extent to which the transferred financial assets continue to be involved refers to the extent to which
the enterprise undertakes the risk or compensation of the value change of the transferred financial assets.
     (III) Continuing identification of transferred financial assets
     Where almost all risks and remuneration in relation to ownership of the transferred financial assets are
retained, the whole of the transferred financial assets shall continue to be recognized and the consideration
received shall be recognized as a financial liability.
     The financial asset and the recognized related financial liabilities shall not offset each other. In the
subsequent accounting period, the enterprise shall continue to recognize the income (or gain) generated by the
financial asset and the costs (or losses) incurred by the financial liability.



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     (7) Deduction of financial assets and liabilities
     Financial assets and financial liabilities should be listed separately in the balance sheet, and cannot
be offset against each other. However, if the following conditions are met, the net amount offset by each other
is listed in the balance sheet:
     The Company has a statutory right to offset the confirmed amount, and such legal right is currently
enforceable;
     The Company plans to settle the net assets or realize the financial assets and liquidate the financial
liabilities at the same time.
     The transferring party shall not offset the transferred financial assets and related liabilities if it does
not meet the conditions for terminating the recognition.
     (8) Recognition of fair value of Finance instruments
     See Note V 34 (1) for the recognition of fair value of financial assets and liabilities).




10. Notes receivable

See Chapter X, V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.


11. Account receivable

See Chapter X, V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.6 – Listed Companies Engaged in Decoration Business.


12. Receivable financing

See Chapter X, V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.


13. Other receivables

Methods for Determining Expected Credit Loss of Other Receivables and Accounting Processing Methods
See Chapter X, V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.


14. Inventories

     (1) Classification of inventories
     Inventory refers to the finished products or commodities held by the Company for sale in daily activities,
the products in process of production, the materials and materials consumed in the process of production or
providing labor services, including entrusted processing materials, raw materials, products in process, materials
in transit, stored goods, low value consumables, development costs, development products and contract performance
costs, etc.
     (2) Valuation method for issuing inventory
     Inventories are measured at cost when procured. Raw materials, products in process and commodity stocks
in transit are measured by the weighted average method.



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     The real estate business inventory mainly includes inventory materials, products under development,
completed development products, and development products intended to be sold but temporarily rented out. Inventory
is measured at the actual costs when the fixed assets are obtained The actual costs of development products include
land transfer payment, infrastructure and facility costs, installation engineering costs, borrows before
completion of the development and other costs during the development process. The special maintenance funds
collected in the first period are included in the development overheads. The actual costs of the development
product is priced using the separate pricing method.
     (3) Inventory system
     The Company inventory adopts the perpetual inventory system, counting at least once a year, the inventory
profit and loss amount is included in the current year's profit and loss.
     (4) Recognition of inventory realizable value and providing of impairment provision
     On the balance sheet date, inventories are accounted depending on which is lower between the cost and the
net realizable value. If the cost is higher than the net realizable value, the impairment provision will be made.
     The realizable net value of inventory should be recognized based on solid evidence with the purpose of the
inventory and after-balance-sheet-date events taken into consideration.
     (1) In the course of normal production and operation, the net realizable value of finished goods, commodities
and materials directly used for sale shall be determined by the estimated price of the inventory minus the estimated
cost of sale and related taxes. The inventory held for the execution of a sales contract or a labor contract
shall be measured on the basis of the contract price as its net realizable value; If the quantity held is greater
than the quantity ordered under the sales contract, the net realizable value of the excess inventory is measured
on the basis of the general sales price. For materials used for sale, the market price shall be used as the
measurement basis for the net realizable value.
     ②In the normal production and operation process, the inventory of materials that need to be processed is
determined by the amount of the estimated selling price of the finished product minus the estimated cost to be
incurred at the time of completion, estimated sales expenses and related taxes Realize the net value. If the
net realizable value of the finished product produced by it is higher than the cost, the material is measured
at cost; If the decrease in the price of the material indicates that the net realizable value of the finished
product is lower than the cost, the material is measured as the net realizable value and the inventory is prepared
for a decrease based on its difference.
     ③ Depreciation preparation of inventory is generally based on a single inventory item; For a large number
of inventories with a lower unit price, they are accrued by inventory type.
     ④ If the factors affecting the previous write-down of inventory value have disappeared on the balance sheet
date, the amount of the write-down will be restored and transferred back within the amount of inventory
depreciation reserve that has been accrued, and the amount returned will be included in the current profit and
loss.
     (5) Methods of amortization of swing materials
     ① Low-value consumables are amortized on on-off amortization basis at using.
② Packages are amortized on on-off amortization basis at using.


15. Contract assets

     As of 1 January 2020
     The Company presents contract assets or liabilities in the balance sheet according to the relationship
between performance obligation and customer payment. The consideration for which the Company is entitled to


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receive (subject to factors other than the passage of time) for the transfer of goods or the provision of services
to customers is listed as contract assets. The Company's obligation to transfer goods or provide services to
customers for consideration received or receivable from customers is listed as contractual liabilities.
      For the determination method and accounting treatment method of the Company's expected credit loss of contract assets, see 9.
Financial instruments in Chapter XII, V. Important accounting policies and accounting estimates.


Contract assets and contract liabilities are listed separately in the balance sheet. Contract assets and contract
liabilities under the same contract are listed in net amount. If the net amount is the debit balance, it shall be listed in "contract assets"
or "other non current assets" according to its liquidity; if the net amount is the credit balance, it shall be listed in "contract liabilities"
or "other non-current liabilities" according to its liquidity. Contract assets and contract liabilities under different
contracts cannot offset each other.




16. Contract costs

      As of 1 January 2020
      Contract cost is divided into contract performance cost and contract acquisition cost.
      The cost incurred by the Company in performing the contract shall be recognized as an asset when the following
conditions are met simultaneously:
      ① The cost is directly related to a current or expected contract, including direct labor, direct materials, manufacturing
expenses (or similar expenses), clearly borne by the customer, and other costs incurred only due to the contract;
      ② This cost increases the Company's future resources for fulfilling its performance obligations.
      ③ The cost is expected to be recovered.
      If the incremental cost incurred by the Company to obtain the contract is expected to be recovered, it shall
be recognized as an asset as the contract acquisition cost.
      The assets related to the contract cost shall be amortised on the same basis as the income from goods or
services related to the assets; however, if the amortization period of the contract acquisition cost is less
than one year, the Company shall include it in the current profit and loss when it occurs.
      If the book value of the assets related to the contract cost is higher than the difference between the
following two items, the Company will make provision for impairment for the excess part and recognize it as the
loss of asset impairment, and further consider whether the estimated liabilities related to the loss contract
should be made:
      ① The residual consideration expected to be obtained due to the transfer of goods or services related to
the asset;
      ② The estimated cost to be incurred for the transfer of the relevant goods or services.
      If the above provision for impairment of assets is subsequently reversed, the book value of the asset after
reversal shall not exceed the book value of the asset on the reversal date without provision for impairment.
      The contract performance cost recognized as an asset with an amortization period of no more than one year or one normal
business cycle at the time of initial recognition shall be listed in the "inventory" item, and the amortization period of no more than
one year or one normal business cycle at the time of initial recognition shall be listed in the "other non current assets" item.
The contract acquisition cost recognized as an asset shall be listed in the item of "other current assets" when the amortization period
does not exceed one year or one normal business cycle at the time of initial recognition, and listed in the item of "other non current
assets" when the amortization period exceeds one year or one normal business cycle at the time of initial recognition.




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17. Long-term share equity investment

      The Group's long-term equity investment includes control on invested entities and significant impacts on
equity investment. Invested entities on which the Group has significant impacts are associates of the Group.
      (1) Basis for recognition of common control and major influence on invested entities
      Common control refers to the common control of an arrangement in accordance with the relevant agreement,
and the relevant activities of the arrangement must be agreed upon by the participants who share control. In
determining whether there is common control, the first step is to determine whether all or a group of participants
collectively control the arrangement, which is considered collective control by all or a group of participants
if all or a group of participants must act together to determine the activities associated with the arrangement.
Secondly, it is judged whether the decision on related activities of the arrangement must be agreed by the
participants who collectively control the arrangement. If there is a combination of two or more parties that
can collectively control an arrangement, it does not constitute joint control. When judging whether there is
joint control, the protective rights enjoyed are not considered.
      Major influence refers to the power to participate in decision-making of financial and operation policies
of a company, but cannot control or jointly control the making of the policies. When considering whether the
Company can impose significant impacts on the invested entity, impacts of conversion of shares with voting rights
held directly or indirectly by the investor and voting rights that can be executed in this period held by the
investor and other party into shares of the invested entity should be considered.
      If the Company directly or through subsidiaries holds more than 20% (inclusive) but less than 50% of the shares with voting
rights of the invested entity, unless there is clear evidence proving that the Company cannot participate the decision-making of
production and operation of the invested entity, the Company has major influence on the invested entity.
      (2) Initial investment cost determination
      Long-term equity investments formed by merger of enterprises shall be determined in accordance with the
following provisions:
      A. In the case of an enterprise merger under the same control, where the merging party makes a valuation of the merger by
payment of cash, transfer of non-cash assets or undertaking liabilities, the share of the book value of the owner's interest in the final
controlling party's consolidated financial statements as the initial investment cost of the long-term equity investment at the date of the
merger. The difference between the initial investment cost of long-term equity investment and the cash paid, the
transferred non-cash assets and the book value of the debt assumed shall be adjusted to the capital reserve;
if the capital reserve is insufficient to offset, the retained earnings shall be adjusted;
      Long-term equity investment generated by enterprise merger: for long-term equity investment obtained by merger of
enterprises under common control, the obtained share of book value of the interests of the merged party’s owner in the consolidate
financial statements on the merger date is costs; for long-term equity investment obtained by merger of enterprises not under
common control, the merger cost is the investment cost. Adjust the capital reserve according to the difference between
the initial investment cost of long-term equity investment and the total face value of the issued shares. If
the capital reserve is insufficient to offset or reduce, the retained income shall be adjusted;
      For merger of entities under different control, the merger cost is the fair value of the asset paid, liability undertaken, and equity
securities issued for exchanging of control power over the entities at the day of acquisition. Agency expenses and other
administrative expenses such as auditing, legal consulting, or appraisal services occurred relating to the merger
of entities are accounted into current income account when occurred.
      Long-term equity investments formed by merger of enterprises shall be determined in accordance with the
following provisions:
      For long-term equity investment obtained by cash, the actually paid consideration is the initial investment cost. Initial



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investment costs include expenses, taxes and other necessary expenditures directly related to the acquisition
of long-term equity investments;
       B. Long-term equity investments acquired from the issuance of interest securities are the initial investment costs based on the
fair value of the issue interest securities;
       C. For long-term equity investments obtained through non-monetary asset exchanges, if the exchange has commercial
substance and the fair value of the exchanged assets or exchanged assets can be reliably measured, the fair value of the exchanged
assets and relevant taxes shall be used as the initial Investment cost, the difference between the fair value and book value of the
swapped-out asset is included in the current profit and loss; if the non-monetary asset exchange does not meet the above two
conditions at the same time, the book value of the swapped-out asset and relevant taxes will be used as the initial investment cost.
       D. Long-term equity investments acquired through debt restructuring determine their recorded value at the fair value of the
waived claims and other costs such as taxes directly attributable to the assets and account for the difference between the fair value
and the book value of the waived claims.
       (3) Subsequent measurement and recognition of gain/loss
       The Company uses the cost method to measure long-term share equity investment in which the Company can control
the invested entity; and uses the equity method to measure long-term share equity investment in which the Company
has substantial influence on the invested entity.
       ① Cost
       For the long-term equity investment measured on the cost basis, except for the announced cash dividend or
profit included in the practical cost or price when the investment was made, the cash dividends or profit
distributed by the invested entity are recognized as investment gains in the current gain/loss account.
       Equity
       Gains from long-term equity investment measured by equity
       When the equity method is used to measure long-term equity investment, the investment cost will not be
adjusted if the investment cost of the long-term equity investment is larger than the share of fair value of
the recognizable assets of the invested entity. When it is smaller than the share of fair value of the recognizable
assets of the invested entity, the book value will be adjusted and the difference is included in the current
gains of the investment.
       When the equity method is used, the current investment gain is the share of the net gain realized in the
current year that can be shared or borne, recognized as investment gain and other misc. income. The book value
of the long-term equity investment is adjusted accordingly. The book value of the long-term equity investment
should be accordingly decreased based on the share of profit or cash dividend announced by the invested entity;
according to other changes in the owner’s equity except for net profit and loss, other misc income and profit
distribution of the invested entity, adjust the book value of the long-term equity investment and record it in
the capital surplus (other capital surplus). When the share of the net gains that can be enjoyed is recognized,
it is recognized after the net profit of the invested entity is adjusted based on the fair value of the recognizeable
assets of the invested entity according to the Company's accounting policies and accounting period. Where the
accounting policy and accounting period adopted by the Invested unit are inconsistent with the Company, the
financial statements of the Invested unit shall be adjusted in accordance with the accounting policy and accounting
period of the Company, and the investment income and other consolidated income shall be recognized. Internal
transaction gain not realized between the Company and affiliates is measured according to the shareholding
proportion and the investment gains is recoginzied after deduction. The unrealized internal transaction loss
between the Company and the invested entity is the impairment loss of transferred assets and should not be written
off.
       Where substantial influence on invested entities is imposed or joint control is implemented due to increase



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in investment, the sum of the fair value of the original equity and increased investment on the conversion date
is the initial investment cost under the equity method. If the equity investment originally held is classified
as other equity instrument investment, the difference between the fair value and the book value, as well as the
accumulated gains or losses originally included in other comprehensive income, shall be transferred out of other
comprehensive income and included in retained income in the current period when the equity method is adopted.
     Where joint control or substantial influence on invested entities is lost due to disposal of part of
investment, the remaining equity after the disposal should be treated according to the Enterprise Accounting
Standard No.22 – Recognition and Measurement of Financial Instruments from the date of losing the joint control
or substantial influence. The difference between the fair value and book value should be accounted the profit
and loss of the current period. For other misc. incomes of original share equity investment determined using
the equity method, when the equity method is no longer used, it should be treated based on the same basis of
the treatment of related assets or liability of the invested entities; the other owners' interests related to
the original share equity investment should be transferred to gain/loss of the current period.
     (4) Equity investment held for sale
     For the remaining equity investments not classified as assets held for sale, the equity method is adopted
for accounting treatment.
     Equity investments classified as held for sale to associates that are no longer eligible to hold classified
assets for sale are retrospectively adjusted using the equity method starting from the date that they are
classified as held for sale. The classification is adjusted to hold the financial statements for the period to
be sold.
     (5) Impairment examination and providing of impairment provision
     See Note V. 24 for the assets impairment provision method for investment in subsidiaries and joint ventures.




XVIII. Investment real estates

      (1) Classification of investment real estate
     Investment real estates are held for rent or capital appreciation, or both. These include, inter alia:
     ① Leased land using right
     (2) the right to use the land that is transferred after holding and preparing for the increment.
     ③ Leased building
     (2) Measurement of investment real estate
     For investment real estates with an active real estate transaction market and the Company can obtain market
price and other information of same or similar real estates to reasonably estimate the investment real estates’
fair value, the Company will use the fair value mode to measure the investment real estates subsequently.
Variations in fair value are accounted into the current gain/loss account.
     The fair value of investment real estates is determined with reference to the current market prices of same
or similar real estates in active markets; when no such price is available, with reference to the recent transaction
prices and consideration of factors including transaction background, date and district to reasonably estimate
the fair value; or based on the estimated lease gains and present value of related cash flows.
     For investment real estate under construction (including investment real estate under construction for the
first time), if the fair value cannot be reliably determined but the expected fair value of the real estate after
completion is continuously and reliably obtained, the investment real estate under construction is measured by
cost. When the fair value can be measured reliably or after completion (the earlier one), it is measured at fair



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value. For an investment real estate whose fair value is proven unable to be obtained continuously and reliably
by objective evidence, the real estate will be measured at cost basis until it is disposed and no residual value
remains as assumed.
      If the cost model is adopted to measure the investment real estate, the depreciation or amortization shall be calculated according
to the straight line method after deducting the accumulated impairment and net residual value of the investment real estate cost. For
the method of depreciation of the accrued assets, see Note V 24.
      The types of investment real estate, estimated economic useful life and estimated net residual value rate
are determined as follows:
      Type                                  Service          year     Residual rate %               Annual           depreciation
                                      (year)                                                  rate %
      Houses & buildings                    35-50                     10                            1.80-2.57




19. Fixed assets

(1) Recognition conditions

Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing services, lease or for
operation & management, and have more than one accounting year of service life. Fixed assets are recognized at the actual cost of
acquisition when the following conditions are met: (1) The economic benefits associated with the fixed assets are likely to flow into
the enterprise. ② The cost of the fixed assets can be measured reliably. Overhaul cost generated by regular examination on fixed
assets is recognized as fixed assets costs when there is evidence proving that it meets fix assets recognition conditions. If not, it will
be accounted into the current gain/loss account.


(2) Depreciation method


                                                                                                                  Annual depreciation
           Type               Depreciation method               Service year               Residual rate
                                                                                                                          rate %

Houses & buildings          Average age                 35-50                      10%                          1.8%-2.57%

Mechanical equipment        Average age                 10                         10%                          9%

Transportation facilities   Average age                 5                          10%                          18%

Electronics and other
                            Average age                 5                          10%                          18%
devices

PV power plants             Average age                 20                         5%                           4.75%


(3) Recognition and pricing of financing leased fixed assets

See Chapter V, Important Accounting Policies and Accounting Estimates 33. Lease.


XX. Construction in process

      (1) Construction in progress is accounted for by project classification.
      (2) Standard and timing for transferring construction in process into fixed assets

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The full expenditure incurred on the construction-in-progress project as a fixed asset is recorded as the value
of the asset before the asset is constructed to the intended usable state. This includes construction costs,
the original cost of equipment, other necessary expenditures incurred in order to enable the construction works
to reach the intended usable status and the borrowing costs incurred for the specific borrowing of the project
and the general borrowing expenses incurred before the assets reach the intended usable status. Construction
in process will be transferred to fixed assets when it reaches the preset service condition. The fixed assets
that have reached the intended usable state but have not been completed shall be transferred to the fixed assets
according to the estimated value according to the estimated value according to the estimated value according
to the project budget, cost or actual project cost, etc. The depreciation of the fixed assets shall be accrued
according to the Company's fixed assets depreciation policy. The original estimated value shall be adjusted
according to the actual cost after the completion.




XXI. Borrowing expenses

     (1) Recognition principles for capitalization of borrowing expenses
     Borrowing expenses occurred to the Company that can be accounted as purchasing or production of asset
satisfying the conditions of capitalizing, are capitalized and accounted as cost of related asset.
     (1) Asset expenditure has occurred;
     ② The borrowing expense has already occurred;
     ③ Purchasing or production activity, which is necessary for the asset to reach the useful status, has already
started.
     Other interest on loans, discounts or premiums and exchange differences are included in the income and loss
incurred in the current period.
     If the construction or production of assets satisfying the capitalizing conditions is suspended abnormally for over 3 months,
capitalizing of borrowing expenses shall be suspended. During the normal suspension period, borrowing expenses will be capitalized
continuously.
     When the asset satisfying the capitalizing conditions has reached its usable or sellable status, capitalizing
of borrowing expenses shall be terminated.
     (2) Calculation of the capitalization amount of borrowing expense
     Interest expenses generated by special borrowings less the interests income obtained from the deposit of
unused borrowings or investment gains from temporary investment is capitalized; the capitalization amount for
general borrowing is determined based on the capitalization rate which is the exceeding part of the accumulative
assets expense over weighted average of the assets expense of the special borrowing/used general borrowing.
If the assets that are constructed or produced under the condition of capitalization occupy the general borrowing,
the interest amount to be capitalized in the general borrowing shall be calculated and determined by multiplying
the capital rate of the general borrowing by the weighted average of the asset expenditure of the accumulated
assets whose expenditure exceeds that of the specialized borrowing. The capitalization ratio is the weighted
average interest rate of general borrowings.




22. Use right assets

See Chapter XI, V, Important Accounting Policies and Accounting Estimates 33. Lease.


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23. Intangible assets

(1) Pricing method, service life and depreciation test

     (1) Pricing of intangible assets
     Recorded at the actual cost of acquisition.
     Amortization of intangible assets
     ① Useful life of intangible assets with limited useful life
     Item                            Estimated useful       Basis
                              life
     Land using right                Term                   Use right assets
     Trademarks and patents          10 years               Reference to determine the lifetime of a company
                                                        for which it can bring economic benefits
     Proprietary                     10 years               Reference to determine the lifetime of a company
technology                                              for which it can bring economic benefits
     Software                        5, 10 years            Reference to determine the lifetime of a company
                                                        for which it can bring economic benefits
     At the end of each year, the Company will reexamine the useful life and amortization basis of intangible
assets with limited useful life. Upon review, the service life and amortization methods of intangible assets
at the end of the period are not different from those previously estimated.
     (2) Intangible assets which cannot be foreseeable to bring economic benefits to enterprises shall be regarded
as intangible assets whose useful life is uncertain. For intangible assets with uncertain service life, the Company
reviews the service life of intangible assets with uncertain service life at the end of each year. If it is still
uncertain after rechecking, it shall conduct an impairment test on the balance sheet date.
     ③ Amortization of intangible assets
     For intangible assets with limited service life, the Company shall determine their service life at the time
of acquisition, and shall use the straight line method system to reasonably amortize their service life, and
the amortization amount shall be included in the profit and loss of the current period according to the beneficial
items. The specific amortization amount is the amount after the cost is deducted from the estimated residual
value. For fixed assets for which depreciation provision is made, the depreciation rate will be determined after
the accumulative depreciation provision amount is deducted. The residual value of an intangible asset with limited
useful life is treated as zero, except where a third party undertakes to purchase the intangible asset at the
end of its useful life or to obtain expected residual value information based on the active market, which is
likely to exist at the end of its useful life.
Intangible assets with uncertain service life will not be amortized. At the end of each year, the useful life
of intangible assets with uncertain useful life is reviewed, and if there is evidence that the useful life of
intangible assets is limited, the useful life is estimated and the system is reasonably amortized within the
expected useful life.


(2) Accounting policies for internal R&D expenses

     Specific standard for distinguish between research and development stage
     ① The Company takes the information and related preparatory activities for further development activities
as the research stage, and the intangible assets expenditure in the research stage is included in the current

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profit and loss period.
      ② The development activities carried out after the Company has completed the research stage as the
development stage.
      Specific conditions for capitalization of expenditures in the development phase
      Expenditures in the development phase can be recognized as intangible assets only when the following
conditions are met:
      A. It is technically feasible to complete the intangible asset so that it can be used or sold;
      B. Have the intention to complete the intangible asset and use or sell it;
      C. The way intangible assets generate economic benefits, including the ability to prove that the products produced by the
intangible assets exist in the market or the intangible assets themselves exist in the market, and the intangible assets will be used
internally, which can prove their usefulness;
      D. Have sufficient technical, financial and other resource support to complete the development of the intangible asset, and have
the ability to use or sell the intangible asset;
      E. The expenditure attributable to the development stage of the intangible asset can be reliably measured.


24. Assets impairment

      The Group uses the cost mode to continue measuring the assets impairment to investment real estate, fixed
assets construction in progress, intangible assets and goodwill (except for the inventories, investment real
estate measured by the fair value mode, deferred income tax assets and financial assets). The method is determined
as follows:
      The Company judges whether there is a sign of impairment to assets on the balance sheet day. If such sign
exists, the Company estimates the recoverable amount and conducts the impairment test. Impairment test is
conducted annually for goodwill generated by mergers and intangible assets that have not reached the useful
condition no matter whether the impairment sign exists.
      The recoverable amount is determined by the higher of the net of fair value minus disposal expense and the
present value of the predicted future cash flow. The Company estimates the recoverable amount on the individual
asset item basis; whether it is hard to estimate the recoverable amount on the individual asset item basis,
determine the recoverable amount based on the asset group that the assets belong to. The assets group is determined
by whether the main cash flow generated by the Group is independent from those generated by other assets or assets
groups.
      When the recoverable amount of the assets or assets group is lower than its book value, the Company writes
down the book value to the recoverable amount, the write-down amount is accounted into the current income account
and the assets impairment provision is made.
      For goodwill impairment test, the book value of goodwill generated by mergers is amortized through reasonable
measures since the purchase day to related asset groups; those cannot be amortized to related assets groups are
amortized to related combination of asset groups. The related asset groups or combination of asset groups refer
to those that can benefit from the synergistic effect of mergers and must not exceed to the reporting range
determined by the Company.
      When the impairment test is conducted, if there is sign of impairment to the asset group or combination
of asset groups related to goodwill, first perform impair test for asset group or combination of asset groups
without goodwill and calculate the recoverable amount and recognize the related impairment loss. Then conduct
impairment test on those with goodwill, compare the book value with recoverable amount. If the recoverable amount
is lower than the book value, recognize the impairment loss of the goodwill.


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Once recognized, the asset impairment loss cannot be written back in subsequent accounting period.


25. Long-term amortizable expenses

     The long-term outstanding expenses shall be accounted for all expenses incurred by the Company but which
shall be borne by the current and future periods for more than one year, and the long-term outstanding expenses
shall be amortized averagely within the benefit period.


26. Contract liabilities

See 15. Contract assets in Chapter V, V. Important Accounting Policies and Accounting Estimates for details.


27. Staff remuneration

(1) Accounting of operational leasing

     ① Basic salary of employees (salary, bonus, allowance, subsidy)
     In the accounting period for which the staff and workers provide services, the Company shall confirm the
actual short-term remuneration as liabilities and shall account for the current income and loss, except as required
or permitted by other accounting standards.
     ② Employee welfare
     The employee benefits incurred by the Company shall be included in the current profit and loss or related
asset costs according to the actual amount incurred. Where the employee's benefit is non-monetary, it shall be
measured on the basis of fair value.
     ③ Social insurance premiums and housing accumulation funds such as health insurance premiums, work injury
premiums, birth insurance premiums, trade union funds and staff and education funds
     The Company pays the medical insurance premiums, work injury insurance premiums, birth insurance premiums,
etc. social insurance premiums and housing accumulation funds for the staff and workers, as well as the union
funds and the staff and workers education funds according to the regulations, in the accounting period for which
the staff and workers provide services, the corresponding salary amount of the staff and workers, and confirms
the corresponding liabilities, which are included in the current profit and loss or related asset costs.
     ④ Short-term paid leave
     The Company accumulates the salary of the employees who are absent from work with pay when the employees
provide service, thus increasing their future right of absence with pay. The Company confirms the salary of the
employee related to the absence of non-cumulative salary during the actual absence accounting period.
     ⑤ Short-term profit share program
     If the profit-sharing plan meets the following conditions at the same time, the Company shall confirm the
salary payable to the staff and workers:
     A. The legal or presumptive obligation of the enterprise to pay the remuneration of its employees as a result of past matters;
B. The amount of employee compensation obligations due to the profit sharing plan can be reliably estimated.


(2) Accounting of post-employment welfare

The Group's post-employment benefit plan is defined contribution plan. Defined contribution plans include basic
endowment insurance, unemployment insurance, etc. During the accounting period when employees provide services

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for them, the Company shall recognize the deposit amount calculated according to the defined deposit plan as
liabilities and include it in the current profits and losses or related asset costs.


(3) Accounting of dismiss welfare

     If the Company provides termination benefits to employees, the employee compensation liabilities arising
from the termination benefits shall be recognized at the earliest of the following two and shall be included
in the current profit and loss:
     ① An enterprise may not unilaterally withdraw the resignation benefits provided for by the dismissal plan
or reduction proposal;
② When the enterprise recognizes the costs or expenses related to the reorganization involving the payment of
resignation benefits.


(4) Accounting of other long-term staff welfare

28. Lease liabilities

See Chapter XI, V, Important Accounting Policies and Accounting Estimates 33. Lease.


29. Anticipated liabilities

     (1) Confirmation of projected liabilities
     When responsibilities occurred in connection to contingent issues, and all of the following conditions are
satisfied, they are recognized as expectable liability in the balance sheet:
     ① This responsibility is a current responsibility undertaken by the Company;
     ② Execution of this responsibility may cause financial benefit outflow from the Company;
     ③ Amount of the liability can be reliably measured.
     (2) Methods of measurement of projected liabilities
Expected liabilities are initially measured at the best estimation on the expenses to exercise the current
responsibility, and with considerations to the relative risks, uncertainty, and periodic value of currency. On
each balance sheet date, review the book value of the estimated liabilities. Where there is conclusive evidence
that the book value does not reflect the current best estimate, the book value is adjusted to the current best
estimate.




30. Revenue

The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.6 – Listed Companies Engaged in Decoration Business.
     As of 1 January 2020
     (1) General principles
     Income is the total inflow of economic benefits formed in the daily activities of the Company, which will
lead to the increase of shareholders' equity and has nothing to do with the capital invested by shareholders.
     The Company has fulfilled the performance obligation in the contract, that is, the revenue is recognized


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when the customer obtains the control right of relevant goods. To obtain the control right of the relevant commodity
means to be able to dominate the use of the commodity and obtain almost all the economic benefits from it.
     If there are two or more performance obligations in the contract, the Company will allocate the transaction
price to each single performance obligation according to the relative proportion of the separate selling price
of the goods or services promised by each single performance obligation on the start date of the contract, and
measure the income according to the transaction price allocated to each single performance obligation.
     The transaction price refers to the amount of consideration that the Company is expected to be entitled
to receive due to the transfer of goods or services to customers, excluding the amount collected on behalf of
a third party. When determining the contract transaction price, if there is a variable consideration, the Company
shall determine the best estimate of the variable consideration according to the expected value or the most likely
amount, and include it in the transaction price with the amount not exceeding the accumulated recognized income
when the relevant uncertainty is eliminated, which is most likely not to have a significant reversal. If there
is a significant financing component in the contract, the Company will determine the transaction price according
to the amount payable in cash when the customer obtains the control right of the commodity. The difference between
the transaction price and the contract consideration will be amortised by the effective interest method during
the contract period. If the interval between the control right transfer and the customer's payment is less than
one year, the Company will not consider the financing component Points.
     If one of the following conditions is met, the performance obligation shall be performed within a certain
period of time; otherwise, the performance obligation shall be performed at a certain point of time:
     ① When the customer performs the contract in the Company, he obtains and consumes the economic benefits
brought by the Company's performance;
     ② Customers can control the goods under construction during the performance of the contract;
     ③ The goods produced by the Company in the process of performance have irreplaceable uses, and the Company
has the right to collect money for the performance part that has been completed so far during the whole contract
period.
     For the performance obligations performed within a certain period of time, the Company shall recognize the
revenue according to the performance progress within that period, except that the performance progress cannot
be reasonably determined. The Company determines the performance schedule of providing services according to
the input method. When the progress of performance cannot be reasonably determined, if the cost incurred by the
Company is expected to be compensated, the revenue shall be recognized according to the amount of cost incurred
until the progress of performance can be reasonably determined.
     For the performance obligation performed at a certain time point, the Company recognizes the revenue at
the time point when the customer obtains the control right of relevant goods. In determining whether a customer
has acquired control of goods or services, the Company will consider the following signs:
     ① The Company has the right to receive payment for the goods or services, that is, the customer has the
obligation to pay for the goods;
     ② The Company has transferred the legal ownership of the goods to the customer, that is, the customer has
the legal ownership of the goods;
     ③ The Company has transferred the goods in kind to the customer, that is, the customer has possessed the
goods in kind;
     ④ The Company has transferred the main risks and rewards of the ownership of the goods to the customer,
that is, the customer has obtained the main risks and rewards of the ownership of the goods;
     ⑤ The product has been accepted by the customer.
     Sales return clause



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     For the sales with sales return clauses, when the customer obtains the control right of the relevant goods,
the Company shall recognize the revenue according to the amount of consideration it is entitled to obtain due
to the transfer of the goods to the customer, and recognize the amount expected to be returned due to the sales
return as the estimated liability; at the same time, the Company shall deduct the estimated cost of recovering
the goods according to the book value of the expected returned goods at the time of transfer( The balance after
deducting the value of the returned goods is recognized as an asset, that is, the cost of return receivable,
which is carried forward by deducting the net cost of the above assets according to the book value of the transferred
goods at the time of transfer. On each balance sheet date, the Company re estimates the return of future sales
and re measures the above assets and liabilities.
     Warranty obligations
     According to the contract and legal provisions, the Company provides quality assurance for the goods sold
and the projects constructed. For the guarantee quality assurance to ensure that the goods sold meet the established standards,
the Company conducts accounting treatment in accordance with the accounting standards for Business Enterprises No. 13 -
contingencies. For the service quality assurance which provides a separate service in addition to guaranteeing that
the goods sold meet the established standards, the Company takes it as a single performance obligation, allocates
part of the transaction price to the service quality assurance according to the relative proportion of the separate
selling price of the goods and service quality assurance, and recognizes the revenue when the customer obtains
the service control right. When evaluating whether the quality assurance provides a separate service in addition
to assuring customers that the goods sold meet the established standards, the Company considers whether the quality
assurance is a statutory requirement, the quality assurance period, and the nature of the Company's commitment
to perform the task.
     Customer consideration payable
     If there is consideration payable to the customer in the contract, unless the consideration is to obtain
other clearly distinguishable goods or services from the customer, the Company will offset the transaction price
with the consideration payable, and offset the current income at the later time of confirming the relevant income
or paying (or promising to pay) the customer's consideration.
     Contractual rights not exercised by customers
     If the Company advances sales of goods or services to customers, the amount shall be recognized as liabilities
first, and then converted into income when relevant performance obligations are fulfilled. When the Company does
not need to return the advance payment and the customer may give up all or part of the contract rights, if the
Company expects to have the right to obtain the amount related to the contract rights given up by the customer,
the above amount shall be recognized as income in proportion according to the mode of the customer exercising
the contract rights; otherwise, the Company only has the very low possibility of the customer requiring to perform
the remaining performance obligations The relevant balance of the above liabilities is converted into income.
     Contract change
     When the construction contract between the Company and the customer is changed:
     ① If the contract change increases the clearly distinguishable construction service and contract price,
and the new contract price reflects the separate price of the new construction service, the Company will treat
the contract change as a separate contract for accounting;
     ② If the contract change does not belong to the above-mentioned situation (1), and there is a clear
distinction between the transferred construction service and the non transferred construction service on the
date of contract change, the Company will regard it as the termination of the original contract, and at the same
time, combine the non performance part of the original contract and the contract change part into a new contract
for accounting treatment;



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③ If the contract change does not belong to the above situation (1), and there is no clear distinction between
the transferred construction services and the non transferred construction services on the date of contract change,
the Company will take the contract change part as an integral part of the original contract for accounting treatment,
and the resulting impact on the recognized income will be adjusted to the current income on the date of contract
change.
     (2) Specific methods
     The specific methods of revenue recognition of the Company are as follows:
     ① Commodity sales contract
     The sales contract between the Company and customers includes the performance obligation of transferring
curtain wall materials, electric energy, etc., which belongs to the performance obligation at a certain time
point.
     Revenue from domestic sales of products is recognized at the time when the customer obtains the right of
control of the goods on the basis of comprehensive consideration of the following factors: the Ccompany has
delivered the products to the customer according to the contract, the customer has accepted the goods, the payment
for goods has been recovered or the receipt has been obtained, and the relevant economic benefits are likely
to flow in, the main risks and rewards of the ownership of the goods have been transferred, the legal ownership
has been transferred;
     Based on the comprehensive consideration of the following factors, the revenue of export products is
recognized at the time when the customer obtains the control of the goods: the Company has declared the products
according to the contract, obtained the bill of lading, collected the payment for goods or obtained the receipt
certificate, and the relevant economic benefits are likely to flow in, the main risks and rewards of the ownership
of the goods have been transferred, and the legal ownership of the goods has been transferred Move.
     ② Service contract
     The service contract between the Company and its customers includes the performance obligations of metro
platform screen door operation and maintenance and property services. As the Company's performance at the same
time, the customers obtain and consume the economic benefits brought by the Company's performance, the Company
takes it as the performance obligation within a certain period of time and allocates it equally during the service
provision period.
     ③ Engineering contract
     The project contract between the Company and the customer includes the performance obligations of curtain
wall project and metro platform screen door project construction. As the customer can control the goods under
construction in the process of the Company's performance, the Company takes them as the performance obligations
within a certain period of time, and recognizes the income according to the performance progress, except that
the performance progress cannot be reasonably determined. The Company determines the performance schedule of
providing services according to the input method. The performance schedule shall be determined according to the
proportion of the actual contract cost to the estimated total contract cost. On the balance sheet date, the Company
re estimates the progress of completed or completed services to reflect the changes in performance.
     ④ Real estate sales contract
     The income of the Company's real estate development business is recognized when the control of the property
is transferred to the customer. Based on the terms of the sales contract and the legal provisions applicable
to the contract, the control of the property can be transferred within a certain period of time or at a certain
point in time. Only if the goods produced by the Company during the performance of the contract have irreplaceable
uses, and the Company has the right to collect payment for the cumulative performance part that has been completed
during the entire contract period, the performance obligation has been completed during the contract period.


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The progress is recognized as revenue within a period of time, and the progress of the completed performance
obligations is determined in accordance with the ratio of the contract costs actually incurred to complete the
performance obligations to the estimated total cost of the contract. Otherwise, the income is recognized when
the customer obtains the physical ownership or legal ownership of the completed property and the Company has
obtained the current right of collection and is likely to recover the consideration. When confirming the contract
transaction price, if the financing component is significant, the Company will adjust the contract commitment
consideration according to the financing component of the contract.


31. Government subsidy

     (1) Recognition of government subsidies
     Government subsidies are recognized when the following conditions are met:
     ① Requirements attached to government subsidies;
     ② The Company can receive government subsidies.
     (2) Recognition of government subsidies
     When a government subsidy is monetary capital, it is measured at the received or receivable amount. None
monetary capital are measured at fair value; if no reliable fair value available, recognized at RMB1.
     (3) Recognition of government subsidies
     ① Assets-related
     Government subsidies related to assets are obtained by the Company to purchase, build or formulate in other
manners long-term assets; or subsidies related to benefits. If the asset-related government subsidy is recognized
as deferred gain, should be recorded in gain and loss in the service life. Government subsidy measured at the
nominal amount is accounted into current income account. If the relevant assets are sold, transferred, scrapped
or damaged before the end of their useful life, the unallocated relevant deferred income balance shall be
transferred to the profit and loss of the current period of disposition of the assets.
     Gain-related government subsidy should be accounted as follows:
     The Company divides government subsidies into assets-related and earnings-related government subsidies.
Gain-related government subsidy should be accounted as follows:
     Subsidy that will be used to compensate related future costs or losses should be recognized as deferred
gain and recorded in the gain and loss of the current report and offset related cost;
     Subsidy that is used to compensate existing cost or loss should be recorded in the gain and loss of the
current period or offset related cost.
     For government subsidies that include both asset-related and income-related parts, separate different parts
for accounting treatment; It is difficult to distinguish between the overall classification of government
subsidies related to benefits.
     Government subsidy related to routine operations should be recorded in other gains or offset related cost.
Government subsidy not related to routine operations should be recorded in non-operating income or expense.
     ③ Policy preferential loan discount
     The policy-based preferential loan obtained has interest subsidy. If the government allocates the
interest-subsidy funds to the lending bank, the loan amount actually received will be used as the entry value
of the loan, and the borrowing cost will be calculated based on the loan principal and policy-based preferential
interest rate.
     If the government allocates the interest-bearing funds directly to the Group, discount interest will offset
the borrowing costs.



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     ④ Government subsidy refund
When a confirmed government subsidy needs to be returned, the book value of the asset is adjusted against the
book value of the relevant asset at initial recognition. If there is a related deferred income balance, the book
balance of the related deferred income is written off and the excess is credited to the current profit or loss;
In other cases, it is directly included in the current profit and loss.


32. Differed income tax assets and differed income tax liabilities

     The Company uses the temporary difference between the book value of the assets and liabilities on the balance
sheet day and the tax base and the liabilities method to recognize the deferred income tax. 26. Deferred income
tax assets and deferred income tax liabilities
     (1) Deferred income tax assets
     For deductible temporary discrepancies, deductible losses and tax offsets that can be carried forward for
future years, the impact on income tax is calculated at the estimated income tax rate for the transfer-back period
and the impact is recognized as deferred income tax assets, provided that the Company is likely to obtain future
taxable income for deductible temporary discrepancies, deductible losses and tax offsets.
     At the same time, the impact on income tax of deductible temporary discrepancies resulting from the initial
recognition of assets or liabilities in transactions or matters with the following characteristics is inconclusive
as deferred income tax assets:
     A. The transaction is not a business combination;
     B. the transaction is not a merger and the transaction does not affect the accounting profit or taxable proceeds;
     In the event of temporary discrepancy of deductible investment related to subsidiaries, joint ventures and
joint ventures, and meeting the following two conditions, the amount of impact (talent) on income tax shall be
deemed as deferred income tax assets:
     A. Temporary discrepancies are likely to be reversed in the foreseeable future;
     B. In the future, it is likely to obtain taxable income that can be used to offset the deductible temporary differences;
     On the balance sheet date, if there is conclusive evidence that sufficient taxable income is likely to be
obtained in the future to offset the deductible temporary differences, the deferred income tax assets that have
not been recognized in the previous period are recognized.
     On the balance sheet day, the Company re-examines the book value of the deferred income tax assets. If it
is unlikely to have adequate taxable proceeds to reduce the benefits of the deferred income tax assets, less
the deferred income tax assets’ book value. When there is adequate taxable proceeds, the lessened amount will
be reversed.
     (2) Deferred income tax assets
     All provisional differences in taxable income of the Company shall be measured on the basis of the estimated
income tax rate for the period of transfer-back and shall be recognized as deferred income tax liabilities, except
that:
     At the same time, the impact on income tax of deductible temporary discrepancies resulting the initial
recognition of assets or liabilities in transactions or matters with the following characteristics is inconclusive
as deferred income tax Liabilities:
     A. Initial recognition of goodwill;
     B. Initial recognition of goodwill, or of assets or liabilities generated in transactions with the following features: the transaction
is not a merger and the transaction does not affect the accounting profit or taxable proceeds;
     ② In the event of temporary discrepancy of deductible investment related to subsidiaries, Joint venture


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joint ventures, and meeting the two conditions, the amount of impact (talent) on income tax shall be deemed as
deferred income tax assets:
      A. The Company is able to control the time of temporary discrepancy transfers;
      B Temporary discrepancies are likely to be reversed in the foreseeable future;
      (3) Deferred income tax assets
      (1) Deferred income tax liabilities or assets associated with enterprise consolidation
      Temporary difference of taxable tax or deductible temporary difference generated by enterprise merger under
non-same control. When deferred income tax liability or deferred income tax asset is recognized, related deferred
income tax expense (or income) is usually adjusted as recognized goodwill in enterprise merger.
      ② Amount of shares paid and accounted as owners' equity
      Except for the adjustment goodwill generated by mergers or deferred income tax related to transactions or
events directly accounted into the owners’ equity, income tax is accounted as income tax expense into the current
gain/loss account. The effects of temporary discrepancy on income tax include the following: Other integrated
benefits such as fair value change of financial assets available for sale, retroactive adjustment of accounting
policy changes or retroactive restatement of accounting error correction discrepancy to adjust the initial
retained income, and mixed financial instruments including liabilities and equity.
      ③ Compensation for losses and tax deductions
      A. Compensable losses and tax deductions from the Company's own operations
      Deductible losses refer to the losses calculated and determined in accordance with the provisions of the
tax law that are allowed to be made up with the taxable income of subsequent years. The uncovered losses (deductible
losses) and tax deductions that can be carried forward in accordance with the tax law are treated as deductible
temporary differences. When it is expected that sufficient taxable income is likely to be obtained in the future
period when it is expected to be available to make up for losses or tax deductions, the corresponding deferred
income tax assets are recognized within the limit of the taxable income that is likely to be obtained, while
reducing the current period Income tax expense in the income statement.
      B. Compensable uncovered losses of the merged company due to business merger
      In a business combination, if the Company obtains the deductible temporary difference of the purchased party
and does not meet the deferred income tax asset recognition conditions on the purchase date, it shall not be
recognized. Within 12 months after the purchase date, if new or further information is obtained indicating that the relevant
conditions on the purchase date already exist, and the economic benefits brought about by the temporary difference are expected to
be deducted on the purchase date, confirm the relevant delivery. Deferred income tax assets, while reducing goodwill, if the goodwill
is not enough to offset, the difference is recognized as the current profit and loss; except for the above circumstances, the deferred tax
assets related to the business combination are recognized and included in the current profit and loss.
      ④Temporary difference caused by merger offset
      If there is a temporary difference between the book value of assets and liabilities in the consolidated
balance sheet and the taxable basis of the taxpayer due to the offset of the unrealized internal sales gain or
loss, the deferred income tax asset or the deferred income tax liability is confirmed in the consolidated balance
sheet, and the income tax expense in the consolidated profit statement is adjusted, with the exception of the
deferred income tax related to the transaction or event directly included in the owner's equity and the merger
of the enterprise.
      ⑤ Share payment settled by equity
If the tax law provides for allowable pre-tax deduction of expenses related to share payment, within the period
for which the cost and expense are recognized in accordance with the accounting standards, the Company shall
calculate the tax basis and temporary discrepancy based on the estimated pre-tax deduction amount at the end


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of the accounting period and confirm the relevant deferred income tax if it meets the conditions for confirmation.
Of these, the amount that can be deducted before tax in the future exceeds the cost related to share payment
recognized in accordance with the accounting standards, and the excess income tax shall be directly included
in the owner's equity.


33. Leasing

(1) The Company as leasee

The Company recognizes the right to use assets and lease liabilities for the lease on the beginning date of the
lease term. The right of use assets are initially measured at cost, including the initial measurement amount of lease liabilities, the
lease payment paid on or before the beginning of the lease term (deducting the amount related to the enjoyed lease incentives), the
initial direct expenses incurred, and the costs incurred for dismantling and removing the leased assets, the estimated cost of restoring
the site where the leased asset is located or restoring the leased asset to the state agreed in the lease terms.
     The Company depreciates the right of use assets using the straight-line method. If it can be reasonably
determined that the ownership of the leased asset is obtained at the expiration of the lease term, the Company
shall accrue depreciation within the remaining service life of the leased asset. Otherwise, the leased asset
is depreciated within the shorter of the lease term and the remaining service life of the leased asset. The
impairment provision for right of use assets shall be accrued according to the accounting policies described in note V. 24.
     The lease liabilities are initially measured according to the present value of the unpaid lease payments
at the beginning of the lease term, and the discount rate is the interest rate embedded in the lease. If the
embedded interest rate of the lease cannot be determined, the incremental loan interest rate of the Company shall
be used as the discount rate.
     The Company calculates the interest expense of the lease liability in each period of the lease term according
to the fixed periodic interest rate and records it into the current profit and loss or relevant asset cost. The
amount of variable lease payments not included in the measurement of lease liabilities shall be included in the
current profits and losses or relevant asset costs when actually incurred.
     After the beginning date of the lease term, in case of the following circumstances, the Company shall re
measure the lease liabilities according to the present value of the lease payment after the change:
     -Changes in the expected payable amount according to the guarantee residual value;
     -Changes in the index or ratio used to determine the amount of lease payments;
     -The Company's appraisal results of purchase option, renewal option or termination option have changed, or the actual exercise
of renewal option or termination option is inconsistent with the original appraisal results.
     When the lease liabilities are remeasured, the Company adjusts the book value of the right to use assets
accordingly. If the book value of the right of use asset has been reduced to zero, but the lease liability still
needs to be further reduced, the Company shall record the remaining amount into the current profit and loss.
     The Company has chosen not to recognize the right to use assets and lease liabilities for short-term leases (leases with a lease
term of no more than 12 months) and low-value asset leases, and the relevant lease payments are included in the current profit and
loss or relevant asset costs according to the straight-line method in each period of the lease term.


(2) The Company is the leasor

     On the lease commencement date, the Company divides the lease into financial lease and operating lease. The
company does not have financial leasing.
     When the Company is the operating lessor, the rent received shall be recognized as income within the lease

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term by the straight line method. Where the lessor provides a lease-free period, the total rent shall be apportioned
within the whole lease-free period without deducting the lease-free period according to the straight line method
or other reasonable method, and the rent-free period shall be recognized as well as the corresponding liabilities.
If the charterer undertakes certain expenses, the Company shall distribute the rent income balance deducted from
the total rent income during the lease term.
    Initial direct expenses are recorded to current income account. Larger amounts shall be capitalized and
included in current profits and losses in installments on the same basis as the confirmed rental income during
the entire operating lease period. In the event of an agreement or rent, the current profit and loss shall be
included in the actual occurrence.




34. Other significant accounting policies and estimates

     (1) Measurement of Fair Value
     Fair value refers to the amount of asset exchange or liabilities settlement by both transaction parties
familiar with the situation in a fair deal on a voluntary basis.
     The Company measures the fair value of related assets or liabilities at the prices in the main market. If
there is no major market, the Company measures the fair value of the relevant assets or liabilities at the most
favorable market prices. The Group uses assumptions that market participants use to maximize their economic
benefits when pricing the asset or liability.
     The main market refers to the market with the highest transaction volume and activity of the related assets
or liabilities. The most favorable market means the market that can sell the related assets at the highest amount
or transfer the related liabilities at the lowest amount after considering the transaction cost and transportation
cost.
     For financial assets or liabilities in an active market, The Company determines their fair value based on
quotations in the active market. If there is no active market, the Company uses evaluation techniques to determine
the fair value.
     For the measurement of non-financial assets at fair value, the ability of market participants to use the
assets for optimal purposes to generate economic benefits, or the ability to sell the assets to other market
participants that can be used for optimal purposes to generate economic benefits.
     ① Valuation technology
     The Company adopts valuation techniques that are applicable in the current period and are supported by
sufficient data and other information. The valuation techniques used mainly include market method, income method
and cost method. The Company uses a method consistent with one or more of the valuation techniques to measure
fair value. If multiple valuation techniques are used to measure fair value, the reasonableness of each valuation
result shall be considered, and the fair value shall be selected as the most representative of fair value under
the current circumstances. The amount of value is regarded as fair value.
     The The Company equipment are applicable in the current circumstances and have sufficient available data
and other information to support the use of the relevant observable input values prioritized. Unobservable input
values are used only when the observable input value cannot be obtained or is not feasible. Observable input
values are input values that can be obtained from market data. The Group uses assumptions that market participants
use to maximize their economic benefits when pricing the asset or liability. Non-observable input values are
input values that cannot be obtained from market data. The input value is obtained based on the best information
available on assumptions used by market participants in pricing the relevant asset or liability.


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     ②Fair value hierarchy
     This company divides the input value used in fair value measurement into three levels, and first uses the
first level input value, then uses the second level input value, and finally uses the third level input value.
First level: quotation of same assets or liabilities in an active market (unadjusted) The second level input
value is a directly or indirectly observable input value of the asset or liability in addition to the first level
input value. The input value of the third level is the unobservable input value of the related asset or liability.
     (2) Hedge accounting
     (2.1) Classification of inventories
     The Company's hedge is a cash flow hedge.
     Cash flow hedging refers to the hedging of cash flow risk. The change in cash flow is derived from specific
risks associated with recognized assets or liabilities, expected transactions that are likely to occur, or with
respect to the components of the above-mentioned project and will affect the profits and losses of the enterprise.
     (2.2) Hedging tools and hedged projects
     Hedging means a financial instrument designated by the Company for the purpose of hedging, whose fair value
or cash flow variation is expected to offset the fair value or cash flow variation of the hedged item, including:
     ① Financial liabilities measured at fair value with variations accounted into current income account
Check-out options can only be used as a hedging tool if the option is hedged, including those embedded in a hybrid
contract. Derivatives embedded in a hybrid contract but not split cannot be used as separate hedging tools.
     ② Non-derivative financial assets or non-derivative financial liabilities that are measured at fair value
and whose changes are included in the current profit and loss, but designated as fair value and whose changes
are included in the current profit and loss, and their own credit risk changes caused by changes in fair value
except for financial liabilities included in other comprehensive income.
     Own equity instruments are not financial assets or financial liabilities and cannot be used as hedging
instruments.
     A hedged item refers to an item that exposes the Company to the risk of changes in fair value or cash flow
and is designated as the hedged object and can be reliably measured. The Company designates the following
individual projects, project portfolios or their components as hedged projects:
     ① Confirmed assets or liabilities.
     ② Confirmed commitments that have not yet been confirmed. Confirmed commitment refers to a legally binding
agreement to exchange a specific amount of resources at an agreed price on a specific date or period in the future.
     ③ Expected transactions that are likely to occur. Anticipated transactions refer to transactions that have
not yet been committed but are expected to occur.
     ④ Net investment in overseas operations.
     The above-mentioned project components refer to the parts that are less than the overall fair value or cash
flow changes of the project. The Company designates the following project components or their combinations as
hedged items:
     ① The part of the change in fair value or cash flow (risk component) that is only caused by one or more
specific risks in the overall fair value or cash flow changes of the project. According to the assessment in
a specific market environment, the risk component should be able to be individually identified and reliably
measured. The risk component also includes the part where the fair value or cash flow of the hedged item changes
only above or below a specific price or other variables.
     ② One or more selected contractual cash flows.
     ③ The component of the nominal amount of the project, that is, the specific part of the whole amount or
quantity of the project, may be a certain proportion of the whole project, or may be a certain level of the whole



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project. If a certain level includes early repayment rights and the fair value of the early repayment rights
is affected by changes in the risk of the hedge, the level shall not be designated as the hedged item of the
fair value hedge, but in the measurement of the hedged item except when the fair value has included the influence
of the prepayment right.
     (2.3) Evaluation of hedging relationship
     When the hedging relationship is initially specified, the Group officially specifies the related hedging
relationships with official documents recording the hedging relationships, risk management targets and hedging
strategies. This document sets out the hedging tools, hedged items, the nature of hedged risks, and the Company's
assessment of hedged effectiveness. Hedging means a financial instrument designated by the Company for the purpose
of hedging, whose fair value or cash flow variation is offset the fair value or cash flow variation of the hedged
item, including: Such hedges are continuously evaluated on and after the initial specified date to meet the
requirements for hedging validity.
     If the hedging instrument has expired, been sold, the contract is terminated or exercised (but the extension
or replacement as part of the hedging strategy is not treated as expired or contract termination), or the risk
management objective changes, resulting in hedging The relationship no longer meets the risk management objectives,
or the economic relationship between the hedged item and the hedging instrument no longer exists, or the impact
of credit risk begins to dominate in the value changes caused by the economic relationship between the hedged
item and the hedging instrument, or when the hedge no longer meets the other conditions of the hedge accounting
method, the Company terminates the use of hedge accounting.
     If the hedging relationship no longer meets the requirements for hedging effectiveness due to the hedging
ratio, but the risk management objective of the designated hedging relationship has not changed, the Company
shall rebalance the hedging relationship.
     (2.4) Validation and measurement
     If the strict conditions of the hedging accounting method are satisfied, the following methods shall be
applied:
     Cash flow hedging
     The part of hedging tool gains or losses that is valid for hedging is recognized as other comprehensive
income as a cash flow hedging reserve, and the part that is invalid for hedging (that is, other gains or losses
after deducting other comprehensive income), are counted Into the current profit and loss. The amount of cash
flow hedging reserve is determined according to the lower of the absolute amounts of the following two items:
①accumulated gains or losses of hedging instruments since the hedging. The amount in the effective arbitrage
is recognized by the accumulative gains or losses from the starting of arbitrage and accumulative changes to
the current value of future forecast cash flows from the start of arbitrage.
     If the expected transaction of the hedged asset is subsequently recognized as a non-financial asset or
non-financial liability, or if the expected transaction of the non-financial asset or non-financial liability
forms a defined commitment to the applicable fair value hedge accounting, the amount of the cash flow hedge reserve
originally recognized in the other consolidated income is transferred out to account for the initial recognized
amount of the asset or liability. For the remaining cash flow hedges, during the same period when the expected
cash flow to be hedged affects the profit and loss, if the expected sales occur, the cash flow hedge reserve
recognized in other comprehensive income is transferred out and included in the current profit and loss.
     (3) Repurchase of the Company’s shares
     (3.1) In the event of a reduction in the Company's share capital as approved by legal procedure, the Company shall reduce the
share capital by the total amount of the written-off shares, adjust the owner's equity by the difference between the price paid by the
purchased stocks (including transaction costs) and the total amount of the written-off shares, offset the capital reserve (share capital



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premium), surplus reserve and undistributed profits in turn; A portion of a capital reserve (share capital premium) that is less than the
total face value and less than the total face value.
      (3.2) The total expenditure of the repurchase shares of the Company, which is managed as an inventory share before they are
cancelled or transferred, is converted to the cost of the inventory shares.
      (3.3) Increase in the capital reserve (capital premium) at the time of transfer of an inventory unit, the portion of the transfer
income above the cost of the inventory unit; Lower than the inventory stock cost, the capital reserve (share capital premium), surplus
reserve, undistributed profits in turn.
      (4) Significant accounting judgment and estimate
      The Group continuously reviews significant accounting judgment and estimate adopted for the reasonable
forecast of future events based on its historical experience and other factors. Significant accounting judgment
and assumptions that may lead to major adjustment of the book value of assets and liabilities in the next accounting
year are listed as follows:
      Classification of financial assets
      The major judgements involved in the classification of financial assets include the analysis of business
model and contract cash flow characteristics.
      The Group determines the business mode of managing financial assets at the level of financial asset portfolio,
taking into account such factors as how to evaluate and report financial asset performance to key managers, the
risks that affect financial asset performance and how to manage it, and how to obtain remuneration for related
business managers.
      When the Group assesses whether the contractual cash flow of financial assets is consistent with the basic
borrowing arrangement, there are the following main judgments: whether the principal may change due to early
repayment and other reasons during the duration of the period or the amount of change; whether the interest
Including the time value of money, credit risk, other basic borrowing risks, and consideration of costs and profits.
For example, does the amount paid in advance reflect only the unpaid principal and the interest based on the
unpaid principal, as well as the reasonable compensation paid for early termination of the contract.
      Measurement of expected credit losses of accounts receivable
      The Group calculates the expected credit loss of accounts receivable through the risk exposure of accounts
receivable default and the expected credit loss rate, and determines the expected credit loss rate based on the
default probability and the default loss rate. When determining the expected credit loss rate, the Company uses
internal historical credit loss experience and other data, combined with current conditions and forward-looking
information to adjust the historical data. When considering forward-looking information, the indicators used
by the Company include the risks of economic downturn, changes in the external market environment, technological
environment, and customer conditions. The Company regularly monitors and reviews assumptions related to the
calculation of expected credit losses.
      Deferred income tax assets
      If there is adequate taxable profit to deduct the loss, the deferred income tax assets should be recognized
by all the unused tax loss. This requires the management to make a lot of judgment to forecast the time and amount
of future taxable profit and determine the amount of the deferred tax assets based on the taxation strategy.
      Revenue recognition (after January 1, 2020)
      The Group's revenue from providing curtain wall construction and metro platform screen door installation
services is recognized over a period of time. The recognition of the income and profit of such engineering
installation services depends on the Company's estimation of the contract results and performance progress. If
the actual amount of total revenue and total cost is higher or lower than the estimated value of the management,
it will affect the amount of revenue and profit recognition of the Group in the future.



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     Estimate of fair value
     The Group uses fair value to measure investment real estate and needs to estimate the fair value of investment
real estate at least quarterly. This requires the management to reasonably estimate the fair value of the
investment real estate with the help of valuation experts.
     Development cost
     For property that has been handed over with income recognized, but whose public facilities have not been
constructed or not been completed, the management will estimate the development cost for the part that has not
been started according to the budget to reflect the operation result of the property sales.


35. Major changes in accounting policies and estimates

(1) Changes in accounting policies

√ Applicable □ Inapplicable

    Account policy changes and reasons                    Approval procedure                                   Remarks

In December 2018, the Ministry of Finance
revised and issued the accounting
standards for Business Enterprises No. 21 -
leasing (CK [2018] No. 35) (hereinafter
referred to as the "new leasing standards"),
which requires enterprises listed at home
and abroad and enterprises listed abroad
and preparing financial statements using                                                    Disclosure source: Announcement on
international financial reporting standards                                                 Changes in Accounting Policies on March
                                               Inapplicable
or accounting standards for enterprises to                                                  23, 2021 (http://www.cninfo.com.cn/) on
take effect as of January 1, 2019; Other                                                    http://www.cninfo.com.cn/
enterprises implementing the accounting
standards for business enterprises shall be
implemented as of January 1, 2021.
According to the above unified
requirements, the Company needs to make
corresponding changes to the original
accounting policies.

      According to the requirements of the new lease standard, the Company will recognize all leased assets (except short-term
leases and low-value asset leases that choose simplified processing) to recognize right-of-use assets and lease liabilities from January
1, 2021, and recognize depreciation and interest expenses respectively.
      In the standard convergence policy, simplified treatment is selected, that is, the lease liabilities are equal to the present value of
the remaining lease payment, and the right-of-use asset is equal to the amount of the lease liabilities and necessary adjustments are
made. Using this method will not affect the Company's retained earnings at the beginning of 2021.
      Due to the implementation of the new lease standards, the consolidated statements of the Company adjusted the use right
assets of RMB7,208,915.40 yuan, lease liabilities of RMB5,102,002.19 yuan and non-current liabilities due within one year of
RMB2,106,913.21 yuan on January 1, 2021.
      At the same time, due to the implementation of the new lease standard, there is no impact on the financial statements of the
parent company of the Company.

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(2) Changes in major accounting estimates

□ Applicable √ Inapplicable


(3) The first implementation of the new financial instruments guidelines, new lease standards, adjustments
the first implementation of the financial statements at the beginning of the year 2021

Applicable
Whether to adjust the balance sheet accounts at the beginning of the year
√ Yes □ No
Consolidated Balance Sheet
                                                                                                                          In RMB

              Item              Thursday, December 31, 2020           Friday, January 1, 2021              Adjustment

Current asset:

     Monetary capital                         1,463,974,162.44                  1,463,974,162.44

     Settlement provision                                                                       0.00

     Outgoing call loan                                                                         0.00

     Transactional financial
                                                  14,382,896.04                    14,382,896.04
assets

     Derivative financial
                                                   6,974,448.22                     6,974,448.22
assets

     Notes receivable                           207,165,063.97                    207,165,063.97

     Account receivable                         616,952,136.19                    616,952,136.19

     Receivable financing                         10,727,129.28                    10,727,129.28

     Prepayment                                   24,105,635.39                    24,105,635.39

     Insurance receivable                                                                       0.00

     Reinsurance receivable                                                                     0.00

     Provisions of
Reinsurance contracts                                                                           0.00
receivable

     Other receivables                          162,282,396.88                    162,282,396.88

         Including: interest
                                                                                                0.00
receivable

                 Dividend
                                                                                                0.00
receivable

     Repurchasing of
                                                                                                0.00
financial assets

     Inventory                                  837,831,790.88                    837,831,790.88



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     Contract assets             1,433,599,583.48    1,433,599,583.48

     Assets held for sales                                       0.00

     Non-current assets due
                                  141,943,454.82      141,943,454.82
in 1 year

     Other current assets         233,223,084.51      233,223,084.51

Total current assets             5,153,161,782.10    5,153,161,782.10

Non-current assets:

     Loan and advancement
provided

     Debt investment

     Other debt investment

     Long-term receivables

     Long-term share equity
                                   55,902,377.95        55,902,377.95
investment

     Investment in other
                                   17,628,307.59        17,628,307.59
equity tools

     Other non-current
                                     5,025,186.16        5,025,186.16
financial assets

     Investment real estate      5,634,648,416.52    5,634,648,416.52

     Fixed assets                 483,217,323.75      483,217,323.75

     Construction in process      168,626,803.01      168,626,803.01

     Productive biological
                                                                 0.00
assets

     Gas & petrol                                                0.00

     Use right assets                                    7,208,915.40                    7,208,915.40

     Intangible assets             77,201,610.87        77,201,610.87

     R&D expense                                                 0.00

     Goodwill                                                    0.00

     Long-term amortizable
                                     4,581,487.32        4,581,487.32
expenses

     Deferred income tax
                                  186,649,335.96      186,649,335.96
assets

     Other non-current assets     104,817,688.85      104,817,688.85

Total of non-current assets      6,738,298,537.98    6,745,507,453.38                    7,208,915.40

Total of assets                 11,891,460,320.08   11,898,669,235.48                    7,208,915.40

Current liabilities



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     Short-term loans             1,048,250,327.62    1,048,250,327.62

     Loans from Central
                                                                  0.00
Bank

     Call loan received                                           0.00

     Transactional financial
liabilities

     Derivative financial
                                       915,234.93           915,234.93
liabilities

     Notes payable                 866,224,515.42      866,224,515.42

     Account payable              1,282,847,988.91    1,282,847,988.91

     Prepayment received             1,544,655.62         1,544,655.62

     Contract liabilities          265,487,113.12       265,487,113.12

     Selling of repurchased
                                                                  0.00
financial assets

     Deposit received and
                                                                  0.00
held for others

     Entrusted trading of
                                                                  0.00
securities

     Entrusted selling of
                                                                  0.00
securities

     Employees' wage
                                    60,894,196.78        60,894,196.78
payable

     Taxes payable                 360,325,524.42      360,325,524.42

     Other payables                153,635,067.86      153,635,067.86

        Including: interest
payable

                  Dividend
                                     6,000,000.00         6,000,000.00
payable

     Fees and commissions
                                                                  0.00
payable

     Reinsurance fee payable                                      0.00

     Liabilities held for sales

     Non-current liabilities
                                   103,359,833.57      105,466,746.78                     2,106,913.21
due in 1 year

     Other current liabilities     107,688,425.69      107,688,425.69                             0.00

Total current liabilities         4,251,172,883.94    4,253,279,797.15                    2,106,913.21

Non-current liabilities:


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     Insurance contract
provision

     Long-term loans            1,099,411,462.35    1,099,411,462.35

     Bond payable

         Including: preferred
                                                                0.00
stock

                Perpetual
                                                                0.00
bond

     Lease liabilities                                  5,102,002.19                    5,102,002.19

     Long-term payable

     Long-term employees'
wage payable

     Anticipated liabilities      33,425,500.13        33,425,500.13

     Deferred earning              9,168,492.17         9,168,492.17

     Deferred income tax
                                1,038,084,099.97    1,038,084,099.97
liabilities

     Other non-current
liabilities

Total of non-current
                                2,180,089,554.62    2,185,191,556.81                    5,102,002.19
liabilities

Total liabilities               6,431,262,438.56    6,438,471,353.96                    7,208,915.40

Owner's equity:

     Share capital              1,088,278,951.00    1,088,278,951.00

     Other equity tools

         Including: preferred
                                                                0.00
stock

                Perpetual
                                                                0.00
bond

     Capital reserves             20,459,588.40        20,459,588.40

     Less: Shares in stock        42,748,530.12        42,748,530.12

     Other miscellaneous
                                   2,078,167.63         2,078,167.63
income

     Special reserves

     Surplus reserve             106,783,436.96      106,783,436.96

     Common risk provisions                                     0.00

     Retained profit            4,217,527,242.56    4,217,527,242.56




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Total of owner's equity
                                                5,392,378,856.43                  5,392,378,856.43
belong to the parent company

     Minor shareholders'
                                                   67,819,025.09                     67,819,025.09
equity

Total of owners' equity                         5,460,197,881.52                  5,460,197,881.52

Total of liabilities and
                                               11,891,460,320.08                 11,898,669,235.48                       7,208,915.40
owner's interest

About the adjustment
         According to the requirements of the new lease standard, the Company will recognize all leased assets (except short-term
leases and low-value asset leases that choose simplified processing) to recognize right-of-use assets and lease liabilities from January
1, 2021, and recognize depreciation and interest expenses respectively.
         In the standard convergence policy, simplified treatment is selected, that is, the lease liabilities are
equal to the present value of the remaining lease payment, and the right-of-use asset is equal to the amount
of the lease liabilities and necessary adjustments are made. Using this method will not affect the Company's retained
earnings at the beginning of 2021.


Balance Sheet of the Parent Company
                                                                                                                                In RMB

               Item               Thursday, December 31, 2020          Friday, January 1, 2021                  Adjustment

Current asset:

     Monetary capital                             204,828,995.78                    204,828,995.78

     Transactional financial
assets

     Derivative financial
assets

     Notes receivable

     Account receivable                               885,849.08                        885,849.08

     Receivable financing

     Prepayment                                      1,323,361.34                      1,323,361.34

     Other receivables                          1,156,802,204.91                  1,156,802,204.91

          Including: interest
receivable

                 Dividend
receivable

     Inventory

     Contract assets

     Assets held for sales

     Non-current assets due


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in 1 year

     Other current assets          1,071,138.13         1,071,138.13

Total current assets            1,364,911,549.24    1,364,911,549.24

Non-current assets:

     Debt investment

     Other debt investment

     Long-term receivables

     Long-term share equity
                                1,196,831,253.00    1,196,831,253.00
investment

     Investment in other
                                  16,392,331.44        16,392,331.44
equity tools

     Other non-current
                                  30,000,001.00        30,000,001.00
financial assets

     Investment real estate      334,498,436.00      334,498,436.00

     Fixed assets                 65,157,481.98        65,157,481.98

     Construction in process

     Productive biological
assets

     Gas & petrol

     Use right assets

     Intangible assets             1,521,975.72         1,521,975.72

     R&D expense

     Goodwill

     Long-term amortizable
                                     687,202.16           687,202.16
expenses

     Deferred income tax
                                  26,592,617.26        26,592,617.26
assets

     Other non-current assets

Total of non-current assets     1,671,681,298.56    1,671,681,298.56

Total of assets                 3,036,592,847.80    3,036,592,847.80

Current liabilities

     Short-term loans            491,503,263.89      491,503,263.89

     Transactional financial
liabilities

     Derivative financial
liabilities



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     Notes payable

     Account payable                 606,941.85           606,941.85

     Prepayment received             927,674.32           927,674.32

     Contract liabilities

     Employees' wage
                                    3,440,073.04        3,440,073.04
payable

     Taxes payable                  2,993,196.12        2,993,196.12

     Other payables                28,068,648.70       28,068,648.70

        Including: interest
payable

                Dividend
payable

     Liabilities held for sales

     Non-current liabilities
due in 1 year

     Other current liabilities

Total current liabilities         527,539,797.92     527,539,797.92

Non-current liabilities:

     Long-term loans

     Bond payable

        Including: preferred
stock

                Perpetual
bond

     Lease liabilities

     Long-term payable

     Long-term employees'
wage payable

     Anticipated liabilities

     Deferred earning

     Deferred income tax
                                   73,837,511.85       73,837,511.85
liabilities

     Other non-current
liabilities

Total of non-current
                                   73,837,511.85       73,837,511.85
liabilities




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Total liabilities                                  601,377,309.77                601,377,309.77

Owner's equity:

      Share capital                               1,088,278,951.00              1,088,278,951.00

      Other equity tools

         Including: preferred
stock

                Perpetual
bond

      Capital reserves                                 360,835.52                     360,835.52

      Less: Shares in stock                         42,748,530.12                  42,748,530.12

      Other miscellaneous
                                                       -371,129.71                   -371,129.71
income

      Special reserves

      Surplus reserve                              106,783,436.96                106,783,436.96

      Retained profit                             1,282,911,974.38              1,282,911,974.38

Total of owners' equity                           2,435,215,538.03              2,435,215,538.03

Total of liabilities and
                                                  3,036,592,847.80              3,036,592,847.80
owner's interest

About the adjustment
The parent company of the Company has no leases other than short-term leases and leases of low-value assets. Therefore, the
implementation of the new lease standards has no impact on the balance sheet of the parent company at the beginning of 2021.


(4) Description of the 2021 first implementation of the new lease standard retrospective adjustment of the
previous period comparison data

□ Applicable √ Inapplicable


VI. Taxation

1. Major taxes and tax rates


                      Tax                                          Tax basis                            Tax rate

VAT                                             Taxable income                         3%, 5%, 6%, 9%, 13%

City maintenance and construction tax           Taxable turnover                       1%, 5%, 7%

Enterprise income tax                           Taxable income                         See the following table

Education surtax                                Taxable turnover                       3%

Local education surtax                          Taxable turnover                       2%

Tax rates applicable for different tax payers


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                            Tax payer                                               Income tax rate

The Company                                                     25%

Shenzhen Fangda Jianke Co., Ltd. (hereinafter Fangda Jianke)    15%

Fangda Zhichuang Technology Co., Ltd, (Fangda Zhichuang)        15%

Fangda New Material (Jiangxi) Co., Ltd. (hereinafter Fangda
                                                                15%
New Material)

Dongguan Fangda New Material Co., Ltd. (hereinafter
                                                                15%
Dongguan New Material)

Chengdu Fangda Construction Technology Co., Ltd. (hereinafter
                                                                15%
Chengdu Fangda)

Shenzhen Fangda Property Development Co., Ltd. (hereinafter
                                                                25%
Fangda Property Development)

Shenzhen Fangda New Energy Co., Ltd. (hereinafter Fangda
                                                                25%
New Energy)

Shenzhen Fangda Property Development Co., Ltd. (hereinafter
                                                                25%
Fangda Property Development)

Jiangxi Fangda Property Development Co., Ltd. (hereinafter
                                                                25%
Fangda Property Development)

Pingxiang Fangda Luxin New Energy Co., Ltd. (hereinafter
                                                                25%
Luxin New Energy)

Nanchang Xinjian Fangda New Energy Co., Ltd. (hereinafter
                                                                25%
Xinjian New Energy)

Dongguan Fangda New Energy Co., Ltd. (hereinafter Dongguan
                                                                25%
New Energy)

Shenzhen QIanhai Kechuangyuan Software Co., Lt.d (hereinafter
                                                                15%
Kechuangyuan Software)

Fangda Zhichuang Technology (Hong Kong) Co., Ltd,
                                                                16.50%
(Zhichuang Hong Kong)

Shihui International Holding Co., Ltd. (hereinafter Shihui
                                                                16.50%
International)

Shenzhen Hongjun Investment Co., Ltd.                           25%

Fangda Australia Pty Ltd (hereinafter Jianke Australia)         30%

Shanghai Fangda Zhijian Technology Co., Ltd. (hereinafter
                                                                15%
referred to as Shanghai Zhijian company)

Shenzhen Fangda Cloud Rail Technology Co., Ltd. (hereinafter
                                                                25%
Fangda Cloud Rail)

Shanghai Fangda Jianzhi Technology Co., Ltd. (hereinafter
                                                                25%
Shanghai Jianzhi)


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Shenzhen Zhongrong Litai Investment Co. Ltd. (Zhongrong
                                                                    25%
Litai)

Chengdu Fangda Curtain Wall Technology Co., Ltd. (hereinafter
                                                                    25%
Chengdu Curtain Wall)

Fangda Southeast Asia Co., Ltd.                                     20%

Shenzhen Xunfu Investment Co., Ltd. (hereinafter referred to as
                                                                    25%
Xunfu Investment)

Shenzhen Lifu Investment Co., Ltd. (hereinafter referred to as
                                                                    25%
Lifu Investment)

Shenzhen Fangda Investment Partnership (Limited Partnership)
                                                                    25%
(hereinafter referred to as Fangda Partnership)

Fangda Jianke (Hong Kong) Co., Ltd. (hereinafter Jianke Hong
                                                                    16.50%
Kong)

Shenzhen Yunzhu Industrial Co., Ltd. (Hereinafter Yunzhu)           15%


2. Tax preference

         (1) According to the Certification of High-tech Enterprise issued by Shenzhen Commission of Technological Innovation,
Shenzhen Commission of Finance, Shenzhen National Tax Bureau, and Shenzhen Local Tax Bureau, Fangda Jianke was entitled to
enjoy a tax preference of enterprise income tax of 15% for three years (2018-2020) since the qualifications were awarded on October
16, 2018.

         (2) According to the Certification of High-tech Enterprise issued by Shenzhen Commission of Technological Innovation,
Shenzhen Commission of Finance, Shenzhen National Tax Bureau, and Shenzhen Local Tax Bureau, Fangda Zhichuang was entitled
to enjoy a tax preference of enterprise income tax of 15% for three years (2018-2020) since the qualifications were awarded on
October 16, 2018.

         (3) According to the Certification of High-tech Enterprise issued by Jiangxi Ministry of Science and Technology, Jiangxi
Ministry of Finance, Jiangxi National Tax Bureau, and Jiangxi Local Tax Bureau, Fangda New Material was entitled to enjoy a tax
preference of enterprise income tax of 15% for three years (2018-2020) since the qualifications were awarded on August 13, 2018.

         (3) On December 14, 2017, the subsidiary Chengdu Fangda obtained the “High-tech Enterprise Certificate” jointly issued by
Sichuan Science and Technology Department, Sichuan Provincial Department of Finance, and Sichuan Provincial Taxation Bureau,
within three years after obtaining the qualification of high-tech enterprises (2020 to 2022), the income tax is levied at 15%.

         (5) On March 2, 2016, according to the document issued by Luxi National Tax Bureau, the PV power generation project
undertaken by Subsidiary Pingxiang Fangda Luxin New Energy Co., Ltd, became the infrastructure project supported by the central
government. the Company enjoys a three-year enterprise income tax relief and 50% reduction for another three years. In 2016, the
Company entered the exemption period.

         (6) On June 2, 2016, according to the document issued by Nanchang Xinjian District National Tax Bureau, the PV power
generation project undertaken by Subsidiary Nanchang Xinjian Fangda New Energy Co., Ltd, became the infrastructure project
supported by the central government. the Company enjoys a three-year enterprise income tax relief and 50% reduction for another
three years. In 2016, the Company entered the exemption period.

         (7) According to the Official Reply of the State Council on Supporting the Development and Opening-up of the Qianhai


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Shenzhen-Hong Kong Modern Service Industry Cooperation Zone in Shenzhen (Guo Han [2012] No. 58) and Notice of the Ministry
of Finance and the State Administration of Taxation on the Preferential Policies and Preferential Catalogue of Enterprise Income Tax
in the Shenzhen Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone in the Pingtan Comprehensive
Experimental Zone of Fujian, Hengqin New District, Guangdong (Cai Shui [2014] No. 26), the subsidiary Kechuangyuan Software
Company is a software and integrated circuit design enterprise, which belongs to the "encouraged industrial enterprise" in the above
provisions, the enterprise income tax shall be levied at a reduced tax rate of 15%.

        (8) On December 2, 2019, the subsidiary Dongguan Fangda New Materials Co., Ltd. obtained the “High-tech Enterprise
Certificate” jointly issued by Guangdong Science and Technology Department, Guangdong Provincial Department of Finance, and
Guangdong Provincial Taxation Bureau. The income tax shall be levied at 15% within three years after the qualification of the
high-tech enterprise is recognized (2019 to 2021).

        (9) On November 12, 2020, the subsidiary Shanghai Zhijian obtained the certificate of high tech enterprise jointly issued by
Shanghai Science and Technology Commission, Shanghai Finance Bureau and Shanghai Taxation Bureau. Within three years (from
2020 to 2022) after obtaining the qualification of high tech enterprise, the income tax will continue to be charged at 15%.

        (10) On December 11, 2020, the subsidiary Yunzhu obtained the certificate of high tech enterprise jointly issued by Shenzhen
Science and Technology Innovation Commission, Shenzhen Finance Commission and Shenzhen State Administration of taxation.
The certificate number is GR202044202438. Within three years after obtaining the qualification of high tech enterprise (2020-2022),
the income tax will be levied at 15%.


VII. Notes to the consolidated financial statements

1. Monetary capital

                                                                                                                              In RMB

                     Item                                  Closing balance                             Opening balance

Inventory cash:                                                                  9,176.73                                     482.09

Bank deposits                                                             919,530,095.12                            1,124,691,042.58

Other monetary capital                                                    326,591,888.80                              339,282,637.77

Total                                                                   1,246,131,160.65                            1,463,974,162.44

  Including: total amount deposited in
                                                                           43,416,674.79                               45,275,606.68
overseas

           The total amount of money that
has restrictions on use due to mortgage,                                  658,832,074.53                              435,587,632.71
pledge or freezing

Other note

(1) Among the bank deposits, RMB364,794,086.20 yuan is restricted, including RMB300 million yuan of time deposits,
RMB35,956,145.59 yuan of deposits restricted by corporate litigation matters, RMB25,207,868.34 yuan of deposits in real estate
development supervision accounts, RMB3,086,104.96 yuan of deposits in special labor insurance accounts and migrant workers'
wages accounts, and RMB543,967.31 yuan of deposits in other guarantee accounts; Among other monetary funds, the use of
restricted funds is RMB294,037,988.33 yuan, mainly including bill deposit, phased guarantee deposit, guarantee deposit for issuing
letter of guarantee, etc. In addition, there are no other funds in the monetary funds at the end of the period that
have restrictions on use and potential recovery risks due to mortgages, pledges or freezing.

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(2) In the preparation of the cash flow statement, the above-mentioned deposits and other restricted deposits are not used as cash and
cash equivalents.


2. Transactional financial assets

                                                                                                                                 In RMB

                    Item                                     Closing balance                            Opening balance

Financial assets measured at fair value
with variations accounted into current                                    132,493,708.09                                14,382,896.04
income account

Including: Investment of financial products                               132,493,708.09                                14,382,896.04

Total                                                                     132,493,708.09                                14,382,896.04


3. Derivative financial assets

                                                                                                                                 In RMB

                    Item                                     Closing balance                            Opening balance

Futures hedging contract                                                       4,478,375.00                                 6,330,475.00

Forward foreign exchange contract                                               618,115.27                                   643,973.22

Total                                                                          5,096,490.27                                 6,974,448.22




4. Notes receivable

(1) Classification of notes receivable

                                                                                                                                 In RMB

                    Item                                     Closing balance                            Opening balance

Bank acceptance                                                              10,854,396.27                              21,081,547.58

Commercial acceptance                                                     107,075,434.04                               186,083,516.39

Total                                                                     117,929,830.31                               207,165,063.97

                                                                                                                                 In RMB

                                           Closing balance                                         Opening balance

                           Remaining book                                         Remaining book
                                              Bad debt provision                                      Bad debt provision
        Type                   value                                 Book              value                                    Book
                                  Proportio            Provision     value                Proportio              Provision      value
                       Amount                 Amount                             Amount               Amount
                                       n                     rate                              n                     rate

  Including:

Notes receivable with 117,929, 100.00%                              117,929,8 207,165,0 100.00%                               207,165,0


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provision for bad           830.31                                        30.31      63.97                                            63.97
debts by portfolio

  Including:

                        10,854,3                                      10,854,39 21,081,54                                         21,081,54
Bank acceptance                         9.20%                                                   10.18%
                             96.27                                         6.27       7.58                                             7.58

Commercial              107,075,                                      107,075,4 186,083,5                                         186,083,5
                                        90.80%                                                  89.82%
acceptance                  434.04                                        34.04      16.39                                            16.39

                        117,929,                                      117,929,8 207,165,0                                         207,165,0
Total                                100.00%                                                   100.00%
                            830.31                                        30.31      63.97                                            63.97

If the provision for bad debts of bills receivable is made in accordance with the general model of expected credit losses, please refer
to the disclosure of other receivables to disclose information about bad debts:
□ Applicable √ Inapplicable


(2) The Group has no endorsed or discounted immature receivable notes at the end of the period.

                                                                                                                                     In RMB

                     Item                                 De-recognized amount                           Not de-recognized amount

Bank acceptance                                                                 1,824,969.42                                    9,473,266.27

Commercial acceptance                                                                                                        16,889,399.01

Total                                                                           1,824,969.42                                 26,362,665.28


(3) Notes transferred to accounts receivable due to default of the issue at the end of period

                                                                                                                                     In RMB

                                                                          Amount transferred to accounts receivable at the end of the
                                 Item
                                                                                                     period

Commercial acceptance                                                                                                        32,500,000.00

Total                                                                                                                        32,500,000.00


5. Account receivable

(1) Account receivable disclosed by categories

                                                                                                                                     In RMB

                                             Closing balance                                         Opening balance

                            Remaining book                                         Remaining book
                                                 Bad debt provision                                       Bad debt provision
         Type                   value                                   Book            value
                                                                                                                                 Book value
                                     Proportio            Provision     value                Proportio              Provision
                        Amount                   Amount                           Amount                  Amount
                                         n                     rate                              n                    rate



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Account receivable
for which bad debt      90,074,4              90,074,4                         99,969,06              99,969,06
                                    14.69%               100.00%                            12.42%                100.00%
provision is made by       40.13                40.13                                9.48                  9.48
group

Including:

                        54,873,2              54,873,2                         54,873,22              54,873,22
1. Customer 1                        8.95%               100.00%                             6.82%                100.00%
                           23.21                23.21                                3.21                  3.21

                        21,739,3              21,739,3                         21,739,38              21,739,38
2. Customer 2                        3.54%               100.00%                             2.70%                100.00%
                           81.96                81.96                                1.96                  1.96

                        13,461,8              13,461,8                         13,461,83              13,461,83
3. Customer 3                        2.20%               100.00%                             1.67%                100.00%
                           34.96                34.96                                4.96                  4.96

                                                                               7,270,000              7,270,000
4. Customer 4                                                                                0.90%                100.00%
                                                                                      .00                   .00

                                                                               2,624,629              2,624,629
5. Customer 5                                                                                0.33%                100.00%
                                                                                      .35                   .35

Account receivable
for which bad debt      523,151,              76,738,4             446,412,9 705,506,6                88,554,54             616,952,13
                                    85.31%                14.67%                            87.59%                 12.55%
provision is made by      364.89                52.81                  12.08        80.47                  4.28                     6.19
group

Including:

1. Portfolio 1:
                        318,210,              66,810,7             251,400,1 514,227,5                78,043,85             436,183,65
Engineering                         51.89%                21.00%                            63.84%                 15.18%
                          909.20                54.82                  54.38        13.84                  6.98                     6.86
operations section

2. Portfolio 2: Real
                        115,113,3             6,381,23             108,732,1 110,059,7                7,310,980             102,748,80
estate business                     18.77%                 5.54%                            13.66%                  6.64%
                           50.31                  8.33                 11.98        82.48                   .25                     2.23
payments

3. Portfolio 3: Other   89,827,1              3,546,45             86,280,64 81,219,38                3,199,707             78,019,677.
                                    14.65%                 3.95%                            10.08%                  3.94%
business models            05.38                  9.66                  5.72         4.15                   .05                          10

                        613,225,              166,812,             446,412,9 805,475,7                188,523,6             616,952,13
Total                               100.00%               27.20%                            100.00%                23.41%
                          805.02               892.94                  12.08        49.95                13.76                      6.19

Separate bad debt provision:
                                                                                                                                 In RMB

                                                                         Closing balance
Name
                           Remaining book value        Bad debt provision          Provision rate             Reason

                                                                                                              Customer credit status
Customer 1                             54,873,223.21               54,873,223.21                    100.00% deteriorates and is hard
                                                                                                              to recover

                                                                                                              Customer credit status
Customer 2                             21,739,381.96               21,739,381.96                    100.00%
                                                                                                              deteriorates and is hard


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                                                                                                           to recover

                                                                                                           Customer credit status
Customer 3                             13,461,834.96              13,461,834.96                   100.00% deteriorates and is hard
                                                                                                           to recover

Total                                  90,074,440.13              90,074,440.13 --                         --

Provision for bad debts by combination: Portfolio 1: Engineering business
                                                                                                                                  In RMB

                                                                            Closing balance
               Name
                                       Remaining book value                Bad debt provision                   Provision rate

Less than 1 year                                   154,496,568.47                       3,028,413.77                              1.96%

1-2 years                                            44,607,842.82                      2,524,852.40                              5.66%

2-3 years                                            33,976,090.42                      4,335,323.23                             12.76%

3-4 years                                            14,681,954.21                      2,901,154.15                             19.76%

4-5 years                                            28,901,199.88                    12,473,757.87                              43.16%

Over 5 years                                         41,547,253.40                    41,547,253.40                              100.00%

Total                                              318,210,909.20                     66,810,754.82 --

Bad debt provision by portfolio: portfolio 2: real estate business funds
                                                                                                                                  In RMB

                                                                            Closing balance
               Name
                                       Remaining book value                Bad debt provision                   Provision rate

Less than 1 year                                     58,678,054.75                       586,780.54                               1.00%

1-2 years                                              4,435,295.56                      221,764.78                               5.00%

2-3 years                                            22,273,070.00                      1,113,653.50                              5.00%

4-5 years                                            29,726,930.00                      4,459,039.51                             15.00%

Total                                               115,113,350.31                      6,381,238.33 --

Provision for bad debts by combination: portfolio 3: Others business
                                                                                                                                  In RMB

                                                                            Closing balance
               Name
                                       Remaining book value                Bad debt provision                   Provision rate

Less than 1 year                                     46,022,790.55                       375,283.28                               0.73%

1-2 years                                            19,993,830.52                       408,742.29                               2.10%

2-3 years                                            19,759,890.58                      1,628,051.85                              8.42%

3-4 years                                              3,845,643.61                      954,088.96                              24.78%

4-5 years                                               182,238.29                       157,581.45                              86.47%

Over 5 years                                             22,711.83                         22,711.83                             100.00%



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Total                                                89,827,105.38                          3,546,459.66 --

If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, please
refer to the disclosure of other receivables to disclose information about bad debts:
□ Applicable √ Inapplicable
Account age
                                                                                                                                      In RMB

                                Age                                                                Closing balance

Within 1 year (inclusive)                                                                                                     259,197,413.77

1-2 years                                                                                                                      69,196,361.13

2-3 years                                                                                                                      79,310,331.56

Over 3 years                                                                                                                  205,521,698.56

  3-4 years                                                                                                                    29,977,612.72

  4-5 years                                                                                                                    68,364,402.40

  Over 5 years                                                                                                                107,179,683.44

Total                                                                                                                         613,225,805.02

The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.6 – Listed Companies Engaged in Decoration Business.

                    Balance of accounts       Balance of provision for                                   Whether there is a
   Customer                                                                   Reason of the age
                 receivable of over 3 years          bad debts                                            risk of recovery
Customer 1                   53,862,071.05              53,862,071.05 Customer credit status             Yes
                                                                         deteriorates
Customer 2                   19,289,861.33              19,289,861.33 Customer credit status             Yes
                                                                         deteriorates
Customer 3                   13,461,834.96              13,461,834.96 Customer credit status             Yes
                                                                         deteriorates
Customer 4                   17,374,148.42              17,295,727.82 Customer credit status             Yes
                                                                         deteriorates
Total                       103,987,915.76             103,909,495.16




(2) Bad debt provision made, returned or recovered in the period

Bad debt provision made in the period:
                                                                                                                                      In RMB

                                                                    Change in the period
        Type        Opening balance                         Written-back or                                                  Closing balance
                                           Provision                                    Canceled           Others
                                                                 recovered

Separate bad debt
                       99,969,069.48                             7,270,000.00           2,624,629.35                           90,074,440.13
provision


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Provision for bad
debts by                88,554,544.28      -11,443,432.01                             372,659.46                          76,738,452.81
combination

Total                 188,523,613.76       -11,443,432.01           7,270,000.00     2,997,288.81                 0.00   166,812,892.94

Including significant recovery or reversal:
                                                                                                                                  In RMB

                    Entity                           Written-back or recovered amount                         Method

Zhejiang Jiayue Industrial Co., Ltd.                                           7,270,000.00 Settlement recovery

Total                                                                          7,270,000.00                       --


(3) Written-off account receivable during the period

                                                                                                                                  In RMB

                               Item                                                                 Amount

Engineering receivables                                                                                                    2,997,288.81


(4) Balance of top 5 accounts receivable at the end of the period

                                                                                                                                  In RMB

                               Closing balance of accounts                                             Balance of bad debt provision at
           Entity                                                            Percentage (%)
                                          receivable                                                         the end of the period

Customer 1                                          56,823,678.84                             9.27%                        5,690,277.99

Customer 2                                          54,873,223.21                             8.95%                       54,873,223.21

Customer 3                                          31,500,000.00                             5.14%                          617,400.00

Customer 4                                          30,142,992.93                             4.92%                        1,049,162.02

Customer 5                                          22,633,721.50                             3.69%                        1,994,412.39

Total                                              195,973,616.48                             31.97%


(5) Receivables derecognized due to transfer of financial assets



                                                                                                          Gain or loss related to the
        Customer                  Way of transfer                      De-recognized amount
                                                                                                               de-recognition

 Customer 1                            Factoring                                     6,012,240.28                           -238,802.84

 Customer 2                            Factoring                                     7,625,631.21                           -285,712.87

 Customer 3                            Factoring                                    11,897,246.28                           -496,531.57

 Customer 4                            Factoring                                     5,328,588.41                           -319,815.81

 Customer 5                            Factoring                                     9,897,439.00                           -791,795.12


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 Customer 6                          Factoring                                       1,608,410.51                           -66,671.30

 Customer 7                          Factoring                                     10,000,000.00                           -178,597.08

 Customer 8                          Factoring                                       3,200,196.11                          -159,527.93

 Customer 9                          Factoring                                       5,093,647.78                          -201,600.83

 Customer 10                         Factoring                                       3,242,714.47                          -126,141.59

 Customer 11                         Factoring                                       9,390,000.00                          -167,702.78

 Total                                                                              73,296,114.05                      -3,032,899.72




6. Receivable financing

                                                                                                                                In RMB

                    Item                                   Closing balance                               Opening balance

Notes receivable                                                           23,798,104.10                               10,727,129.28

                    Total                                                  23,798,104.10                               10,727,129.28

Increase or decrease in the current period of receivables financing and changes in fair value
□ Applicable √ Inapplicable
If the provision for financing impairment of receivables is accrued in accordance with the general expected credit loss model, please
refer to the disclosure of other receivables to disclose the relevant information of the impairment provision:
□ Applicable √ Inapplicable


7. Prepayment

(1) Account age of prepayments

                                                                                                                                In RMB

                                              Closing balance                                        Opening balance
            Age
                                    Amount                    Proportion                   Amount                  Proportion

Less than 1 year                        18,729,843.52                    77.63%                 18,880,088.01                  78.32%

1-2 years                                1,887,107.72                      7.82%                 3,080,312.85                  12.78%

2-3 years                                1,707,116.28                      7.08%                 1,156,139.70                   4.80%

Over 3 years                             1,802,051.67                      7.47%                  989,094.83                    4.10%

Total                                   24,126,119.19              --                           24,105,635.39          --


(2) Balance of top 5 prepayments at the end of the period

The total of top5 prepayments in terms of the prepaid entities in the period is RMB8,689,564.47, accounting for 36.02% of the total
prepayments at the end of the period.



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8. Other receivables

                                                                                                                 In RMB

                      Item                     Closing balance                            Opening balance

Interest receivable                                              1,601,660.58                                       0.00

Dividend receivable                                                                                                 0.00

Other receivables                                            166,997,627.69                             162,282,396.88

Total                                                        168,599,288.27                             162,282,396.88


(1) Receivable interest

1) Receivable interest

                                                                                                                 In RMB

                      Item                     Closing balance                            Opening balance

Time deposit                                                     1,601,660.58

Total                                                            1,601,660.58                                      0.00


2) Method of bad debt provision

□ Applicable √ Inapplicable


(2) Other receivables

1) Other receivables are disclosed by nature

                                                                                                                 In RMB

                 By nature               Closing balance of book value             Opening balance of book value

Deposit                                                      105,115,483.57                             103,782,569.80

Construction borrowing and advanced
                                                              53,675,374.44                              34,052,644.05
payment

Staff borrowing and petty cash                                   2,685,748.34                               1,717,094.83

Receivable refund of VAT                                          422,914.58                                 548,129.42

Debt by Luo Huichi                                            12,992,291.48                              12,992,291.48

Others                                                        15,170,689.10                              12,502,878.08

Total                                                        190,062,501.51                             165,595,607.66


2) Method of bad debt provision

                                                                                                                 In RMB

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                                  First stage                Second stage                   Third stage

                               Expected credit        Expected credit loss for the Expected credit loss for the
   Bad debt provision                                                                                                   Total
                             losses in the next 12     entire duration (no credit      entire duration (credit
                                   months                    impairment)             impairment has occurred)

Balance on Friday,
                                      2,253,521.41                      572,176.59                21,456,358.87          24,282,056.87
January 1, 2021

Balance on Friday,
January 1, 2021 in the                ——                       ——                            ——                   ——
current period

Provision                                203,817.68                      13,494.90                 -1,357,296.63         -1,139,984.05

Canceled in the current
                                                                                                        77,199.00            77,199.00
period

Balance on Wednesday,
                                      2,457,339.09                      585,671.49                20,021,863.24          23,064,873.82
June 30, 2021

Changes in book balances with significant changes in the current period
□ Applicable √ Inapplicable
Account age
                                                                                                                                In RMB

                                Age                                                              Closing balance

Within 1 year (inclusive)                                                                                                54,856,468.07

1-2 years                                                                                                                11,670,871.98

2-3 years                                                                                                                81,146,799.81

Over 3 years                                                                                                             42,388,361.65

  3-4 years                                                                                                              21,134,527.37

  4-5 years                                                                                                               1,365,756.20

  Over 5 years                                                                                                           19,888,078.08

Total                                                                                                                   190,062,501.51


3) Bad debt provision made, returned or recovered in the period

Bad debt provision made in the period:
                                                                                                                                In RMB

                                                                     Change in the period
         Type        Opening balance                          Written-back or                                         Closing balance
                                             Provision                                Canceled             Others
                                                                 recovered

Other receivables
and bad debt             24,282,056.87       -1,139,984.05                               77,199.00                       23,064,873.82
provision


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Total                   24,282,056.87        -1,139,984.05                               77,199.00                          23,064,873.82


4) Other receivable written off in the current period

                                                                                                                                   In RMB

                                  Item                                                               Amount

Other receivable written off                                                                                                    77,199.00


5) Balance of top 5 other receivables at the end of the period

                                                                                                                                   In RMB

                                                                                                                      Balance of bad debt
        Entity                 By nature          Closing balance           Age                 Percentage (%)        provision at the end
                                                                                                                         of the period

Shenzhen Yikang         Deposit and
                                                      70,000,000.00 2-3 years                             36.83%             1,043,000.00
Real Estate Co. Ltd. advancement

Bangshen
Electronics             Deposit                       20,000,000.00 3-4 years                             10.52%               298,000.00
(Shenzhen) Co., Ltd.

Shenzhen Rijiasheng
                        Advancement                   18,808,945.57 Less than 1 year                          9.90%            564,268.37
Trading Co., Ltd

Luo Huichi              Debt by Luo Huichi            12,992,291.48 Over 5 years                              6.84%         12,992,291.48

Shenzhen Henggang
                        Deposit                        8,044,000.00 2-3 years                                 4.23%            119,855.60
Dakang Co., Ltd.

Total                              --                129,845,237.05             --                        68.32%            15,017,415.45




9. Inventories

Whether the Company needs to comply with disclosure requirements of the real estate industry.
Yes


(1) Classification of inventories

The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.3 – Listed Companies Engaged in Property Development.
Classified by nature:
                                                                                                                                   In RMB

                                           Closing balance                                           Opening balance
        Item
                    Remaining book          Provision for     Book value        Remaining book        Provision for        Book value


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                               value              inventory                                    value                 inventory
                                                depreciation or                                                depreciation or
                                                   contract                                                          contract
                                            performance cost                                                   performance cost
                                                 impairment                                                         impairment
                                                  provision                                                          provision

Development cost          210,828,927.04                              210,828,927.04       458,032,158.63                              458,032,158.63

Development
                          312,870,562.69                              312,870,562.69        99,012,986.31                                99,012,986.31
products

Contract
performance                92,016,666.73             464,651.43        91,552,015.30       140,403,466.43              464,651.43      139,938,815.00
costs

Raw materials              83,466,750.73              55,182.86        83,411,567.87        61,682,744.96               55,182.86        61,627,562.10

Product in
                           55,364,191.11                               55,364,191.11        66,570,800.79                                66,570,800.79
process

Finished goods in
                           11,358,399.61                               11,358,399.61         7,784,598.06                                 7,784,598.06
stock

Low price
                               166,748.73                                   166,748.73         123,705.51                                      123,705.51
consumable

OEM materials               5,418,418.28                                   5,418,418.28      3,562,856.58                                 3,562,856.58

Materials in
                            3,723,431.52                                   3,723,431.52      1,178,307.90                                 1,178,307.90
transit

Total                     775,214,096.44             519,834.29       774,694,262.15       838,351,625.17              519,834.29      837,831,790.88

Development cost and capitalization rate of its interest are disclosed as follows:
                                                                                                                                                  In RMB

                                                                  Transferr
                                                                                           Increase                               Including:
                                                                    ed to
                                       Estimated                                 Other     (develop                  Accumula capitalize
                          Estimated                               developm
               Starting                  total      Opening                    decrease      ment         Closing       tive      d interest     Capital
   Item                     finish                                   ent
                 time                  investmen balance                        in this    cost) in       balance capitalize       for the       source
                               time                               product in
                                            t                                   period       this                    d interest    current
                                                                     this
                                                                                            period                                 period
                                                                   period

Nanchang Tuesday, Tuesday,
                                       670,000,0 250,191,6 223,823,8 26,367,73
Fangda       May 1,       April 27,
                                            00.00        19.08        80.71         8.37
Center       2018         2021
                                                                                                                                               Bank loan
Dakang                                                                                                                                         and
             1            31
Village                                3,600,000 197,352,0                                 683,524.3 198,035,5                                 self-owne
             December December
Project in                               ,000.00         43.69                                        9      68.08                             d fund
             2023         2029
Shenzhen

Fangda       1            31           870,000,0 10,488,49                                 2,304,863 12,793,35


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Bangshen December December                      00.00       5.86                                  .10         8.96
Industry     2022            2024
Park

                                         5,140,000 458,032,1 223,823,8 26,367,73 2,988,387 210,828,9
Total             --             --                                                                                                                    --
                                           ,000.00         58.63       80.71        8.37          .49        27.04

Disclose the main project information of "Development Products" according to the following format:
                                                                                                                                                   In RMB

                                                                                                                                            Including:
                                                                                                               Accumulative
                Completion            Opening                                                                                            capitalized
    Item                                                Increase        Decrease       Closing balance           capitalized
                    time              balance                                                                                          interest for the
                                                                                                                     interest
                                                                                                                                       current period

Phase I of
                December
Fangda                           99,012,986.31                         10,093,492.33         88,919,493.98           3,433,223.79
                29, 2016
Town

Nanchang        Tuesday,
                                                    223,823,880.7
Fangda          April 27,                                                                   223,823,880.71           9,813,470.29            1,537,383.71
                                                                   1
Center          2021

                                                    223,823,880.7
Total                  --        99,012,986.31                         10,093,492.33        312,743,374.69       13,246,694.08               1,537,383.71
                                                                   1


(2) Provision for inventory depreciation and contract performance cost impairment provision

The inventory depreciation provision is disclosed as follows:
Classified by nature:
                                                                                                                                                   In RMB

                                           Increase in this period                Decrease in this period
                            Opening                                                                                        Closing
         Item                                                                  Recover or                                                     Remarks
                            balance       Provision          Others                                  Others                balance
                                                                               write-off

Contract
performance             464,651.43                                                                                          464,651.43
costs

Raw materials               55,182.86                                                                                           55,182.86

Total                   519,834.29                                                                                          519,834.29            --


(3) Capitalization rate of interest in the closing inventory balance

As at June 30, 2021, the amount of the capitalization of borrowing costs in the balance of the end-of-period inventory was
RMB13,246,694.08.




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(4) Restriction of inventory

Restricted inventory is disclosed by project
                                                                                                                                        In RMB


                   Item                    Opening balance                    Closing balance                              Reason


Nanchang Fangda Center                              103,973,925.13                        87,429,489.76 Credit Mortgage, Mortgage Loan

Total                                               103,973,925.13                        87,429,489.76                      --


10. Contract assets

                                                                                                                                        In RMB

                                                    Closing balance                                        Opening balance
            Item                 Remaining            Impairment                           Remaining        Impairment
                                                                        Book value                                                Book value
                                 book value            provision                           book value          provision

Sales funds with conditional
                                42,793,840.93          1,215,396.98 41,578,443.95 27,639,344.20                 351,544.65        27,287,799.55
collection right

Completed but unsettled        1,762,114,432.                          1,620,676,114. 1,540,146,004.
                                                     141,438,318.05                                        146,024,200.75 1,394,121,804.00
assets                                         79                                   74                75

Unexpired warranty deposit         692,613.72             14,158.36        678,455.36 12,536,462.04             346,482.11        12,189,979.93

                               1,805,600,887.                          1,662,933,014. 1,580,321,810.
Total                                                142,667,873.39                                        146,722,227.51 1,433,599,583.48
                                               44                                   05                99

The amount and reasons for major changes in the book value of contract assets during the current period:
                                                                                                                                        In RMB

             Item                              Change                                                Reason

                                                                      It is mainly due to the sales payment with conditional collection
Sales funds with conditional
                                                     14,290,644.40 right arising from the recognized product sales revenue in the
collection right
                                                                      current period

                                                                      It is mainly caused by the unsettled assets with conditional
Completed but unsettled
                                                    226,554,310.74 collection right generated from the revenue recognized in the
assets
                                                                      project contract this period

Total                                               240,844,955.14                                      ——

If the provision for bad debts of contract assets is made in accordance with the general model of expected credit losses, please refer to
the disclosure of other receivables to disclose information about bad debts:
□ Applicable √ Inapplicable
Provision made for bad debts of contract assets in this period
                                                                                                                                        In RMB

                                                          Transferred back in the      Written off in the current
           Item                    Provision                                                                                  Reason
                                                               current period                   period


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Sales funds with
conditional collection                 863,852.33
right

                                                                                                    The reversal of 7.33
                                                                                                    million yuan in the
                                                                                                    current period is due to
                                                                                                    the reconciliation and
Completed but unsettled
                                      2,744,117.30          7,330,000.00                            recovery in the current
assets
                                                                                                    period after the
                                                                                                    individual full provision
                                                                                                    for impairment in the
                                                                                                    previous period.

Unexpired warranty
                                      -332,323.75
deposit

Total                                 3,275,645.88          7,330,000.00                                        --


11. Non-current assets due in 1 year

                                                                                                                        In RMB

                     Item                            Closing balance                            Opening balance

Contract assets due within one year                               107,518,641.70                              159,410,690.57

Less: provision for impairment                                     16,436,432.64                               17,467,235.75

Total                                                              91,082,209.06                              141,943,454.82


12. Other current assets

                                                                                                                        In RMB

                     Item                            Closing balance                            Opening balance

Tax to be input                                                   122,632,551.19                              136,812,357.07

Prepaid income tax                                                 86,196,746.29                               88,741,787.42

Other prepaid taxes                                                20,253,761.57                                  2,373,031.15

Deferred discount expense                                              6,170,627.16                               2,644,267.12

Contract acquisition cost                                                                                         2,156,027.17

Others                                                                     6,225.36                                  495,614.58

Total                                                             235,259,911.57                              233,223,084.51


13. Long-term share equity investment

                                                                                                                        In RMB



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                                                                      Change (+,-)                                                           Balance
                                                      Investme                                                                                  of
                                                                     Other
                                                       nt gain                                Cash                                           impairme
                 Opening                  Decrease                 miscellan                                                      Closing
 Invested                   Increased                 and loss                    Other     dividend Impairme                                    nt
                  book                        d                      eous                                                          book
    entity                  investmen                 recognize                   equity    or profit      nt       Others                   provision
                  value                   investmen                 income                                                         value
                                  t                    d using                    change    announce provision                               at the end
                                              t                    adjustmen
                                                      the equity                               d                                               of the
                                                                       t
                                                       method                                                                                 period

1. Joint venture

2. Associate

Shenzhen
Ganshang
Joint        2,364,798                                                                                                         2,365,203
                                                         404.53
Investme              .65                                                                                                              .18
nt Co.,
Ltd.

Jiangxi
Business
Innovativ
e            53,537,57                                -453,298.                                                                53,084,28
Property             9.30                                    18                                                                       1.12
Joint
Stock
Co., Ltd.

             55,902,37                                -452,893.                                                                55,449,48
Subtotal
                     7.95                                    65                                                                       4.30

             55,902,37                                -452,893.                                                                55,449,48
Total
                     7.95                                    65                                                                       4.30


14. Investment in other equity tools

                                                                                                                                                In RMB

                          Item                                       Closing balance                                 Opening balance

Unlisted equity instrument investment                                                   17,398,629.00                                  17,628,307.59

Total                                                                                   17,398,629.00                                  17,628,307.59

Sub-disclosure of non-tradable equity instrument investment in the current period
                                                                                                                                                In RMB

                             Dividend                                                      Amount of other        Reason for           Reason for
          Item            recognized in the       Total gain               Total loss      comprehensive        measurement at      transfer of other
                                 period                                                        income           fair value with      miscellaneous



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                                                                    transferred to      variations          into income
                                                                  retained earnings   accounted into
                                                                                      current income
                                                                                         account

Shenyang Fangda                                  12,170,244.23

Shenzhen Huihai
Yirong Internet                                   2,772,979.96
Service Co., Ltd.


15. Other non-current financial assets

                                                                                                                   In RMB

                    Item                       Closing balance                             Opening balance

Financial assets measured at fair value
with variations accounted into current                           5,198,015.90                                 5,025,186.16
income account

Total                                                            5,198,015.90                                 5,025,186.16


16. Investment real estates

(1) Investment real estate measured at costs

√ Applicable □ Inapplicable
                                                                                                                   In RMB

                      Item                     Houses & buildings                                  Total

 I. Book value

 1. Opening balance                                              10,410,691.87                             10,410,691.87

 2. Increase in this period                                       6,978,132.52                              6,978,132.52

 (1) Transfer-in from inventory\fixed
                                                                  6,978,132.52                              6,978,132.52
 assets\construction in progress

 3. Decrease in this period                                               0.00                                      0.00

 4. Closing balance                                              17,388,824.39                             17,388,824.39

 II. Accumulative depreciation and
 amortization

 1. Opening balance                                               4,053,723.75                              4,053,723.75

 2. Increase in this period                                       2,974,583.59                              2,974,583.59

 (1) Provision or amortization                                     209,680.87                                209,680.87

 (2) Other transfer-in                                            2,764,902.72                              2,764,902.72

 3. Decrease in this period


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 4. Closing balance                                                            7,028,307.34                                7,028,307.34

 III. Impairment provision

 1. Opening balance

 2. Increase in this period

 3. Decrease in this period

 4. Closing balance

 IV. Book value

 1. Closing book value                                                        10,360,517.05                              10,360,517.05

 2. Opening book value                                                         6,356,968.12                                6,356,968.12


(2) Investment real estate measured at fair value

√ Applicable □ Inapplicable
                                                                                                                                   In RMB

                   Item                                       Houses & buildings                                Total

 I. Opening balance                                                         5,628,291,448.40                         5,628,291,448.40

 II. Change in this period                                                     7,542,132.99                                7,542,132.99

 Add: external purchase                                                        11,083,112.99                              11,083,112.99

       Transfer-in from inventory\fixed
                                                                               8,987,340.00                                8,987,340.00
 assets\construction in progress

 Less: other transfer-out                                                     12,528,320.00                              12,528,320.00

 III. Closing balance                                                       5,635,833,581.39                         5,635,833,581.39

The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.3 – Listed Companies Engaged in Property Development.
Disclosure of investment real estate measured at fair value by projects
                                                                                                                                   In RMB

                                                                 Rental
                                       Completio Building income in Opening             Closing fair    Change in        Reason for the
          Item              Location
                                        n time      area       the report fair value       value        fair value      change and report
                                                                 period

                                       11
Commercial podium                                               16,719,17 1,340,385, 1,340,385,948.
                          Shenzhen October        22,565.42
of Fangda Town                                                       4.95     948.00               00
                                       2017

                                       29
Building 1# of Fangda                                           34,936,18 3,646,971, 3,646,971,680.
                          Shenzhen December 72,517.71
Town                                                                 1.89     680.07               07
                                       2018

                                       28                      7,361,567. 334,498,4
Fangda Building           Shenzhen                17,604.12                            330,957,456.00       -1.06%
                                       December                       20       36.00


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                                    2002

                                    Tuesday,
Nanchang Fangda                                                              302,854,5
                           Nanchang April 27,    32,354.44                               313,937,667.32            3.66%
Center                                                                          54.33
                                    2021

                                                 145,041.6 59,016,92 5,624,710, 5,632,252,751.
Total                        ——      ——                                                                        0.13%         ——
                                                 9                 4.04        618.40                  39

Whether the Company has investment real estate in the current construction period
□ Yes √ No
Whether there is new investment real estate measured at fair value in the report period
□ Yes √ No


(3) Investment real estate without ownership certificate

                                                                                                                                        In RMB

                    Item                                       Book value                                           Reason

                                                                                               Conditions for applying for property right
Nanchang Fangda Center                                                        313,937,667.32
                                                                                               are not met




17. Fixed assets

                                                                                                                                        In RMB

                    Item                                     Closing balance                                   Opening balance

Fixed assets                                                                  566,440,865.19                                 481,326,212.63

Disposal of fixed assets                                                                                                         1,891,111.12

Total                                                                         566,440,865.19                                 483,217,323.75


(1) Fixed assets

                                                                                                                                        In RMB

                       Houses &            Mechanical        Transportation       Electronics and
         Item                                                                                          PV power plants            Total
                        buildings           equipment           facilities         other devices

I. Original book
value:

  1. Opening
                      415,725,429.92       121,496,328.96      21,516,442.64         46,349,557.98          129,596,434.84   734,684,194.34
balance

  2. Increase in
                      106,511,868.90          1,639,089.37        275,730.08              814,682.92                         109,241,371.27
this period

     (1) Purchase      12,224,293.06          1,639,089.37        275,730.08              814,682.92                          14,953,795.43



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     (2)
Transfer-in of
                      81,759,255.84                                                                        81,759,255.84
construction in
progress

     (3) Increase
due to enterprise
merger

(4) Other
                      12,528,320.00                                                                        12,528,320.00
increases

  3. Decrease in
                      14,818,152.52     3,269,796.62     439,458.08       405,887.75                       18,933,294.97
this period

     (1) Disposal
                                        3,269,706.62     439,458.08       386,783.23                        4,095,947.93
or retirement

(2) Other
                      14,818,152.52           90.00                        19,104.52                       14,837,347.04
decrease

  4. Closing
                     511,745,585.15   119,865,621.71   21,352,714.64   46,758,353.15    129,596,434.84    829,318,709.49
balance

II. Accumulative
depreciation

  1. Opening
                      89,797,346.50    89,670,126.47   16,097,483.98   29,337,279.16     28,357,356.10    253,259,592.21
balance

  2. Increase in
                       5,960,601.60     2,111,534.26     356,399.79       982,359.12      3,074,220.06     12,485,114.83
this period

     (1) Provision     5,960,601.60     2,111,534.26     356,399.79       982,359.12      3,074,220.06     12,485,114.83



  3. Decrease in
                       3,629,719.64     2,780,502.19     389,373.35       490,175.91                        7,289,771.09
this period

     (1) Disposal
                                        2,780,502.19     389,373.35       346,138.26                        3,516,013.80
or retirement

(2) Other
                       3,629,719.64                                       144,037.65                        3,773,757.29
decrease

  4. Closing
                      92,128,228.46    89,001,158.54   16,064,510.42   29,829,462.37     31,431,576.16    258,454,935.95
balance

III. Impairment
provision

  1. Opening
                                          41,621.81                        56,767.69                           98,389.50
balance

  2. Increase in
this period


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  3. Decrease in
                                             1,920.00                                                                     1,920.00
this period

       (1) Disposal
                                             1,920.00                                                                     1,920.00
or retirement

  4. Closing
                                           39,701.81                             56,767.69                               96,469.50
balance

IV. Book value

  1. Closing
                       419,617,356.69   30,824,761.36      5,288,204.22      16,872,123.09        98,164,858.68     570,767,304.04
book value

  2. Opening
                       325,928,083.42   31,784,580.68      5,418,958.66      16,955,511.13      101,239,078.74      481,326,212.63
book value


(2) Fixed assets without ownership certificate

                                                                                                                            In RMB

                      Item                                Book value                                       Reason

Houses in Urumuqi for offsetting debt                                     490,848.03 Historical reasons

Yuehai Office Building C 502                                              121,526.97 Historical reasons

Construction of Chengdu Fangda Xinjin                                                  In the process of applying for property
                                                                       25,624,991.38
Base                                                                                   right certificate


(3) Disposal of fixed assets

                                                                                                                            In RMB

                      Item                              Closing balance                              Opening balance

Jiangxi new material South Korea
                                                                                                                       1,891,111.12
composite aluminum plate production line

Total                                                                                                                  1,891,111.12


18. Construction in process

                                                                                                                            In RMB

                      Item                              Closing balance                              Opening balance

Construction in process                                                98,594,455.15                                168,626,803.01

Total                                                                  98,594,455.15                                168,626,803.01


(1) Construction in progress

                                                                                                                            In RMB



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                                               Closing balance                                                     Opening balance
          Item           Remaining book          Impairment                               Remaining book                Impairment
                                                                        Book value                                                            Book value
                             value                provision                                      value                    provision

Construction and
decoration of
self-use part of                                                                              78,213,965.55                                   78,213,965.55
Building 1 of
Fangda Town

Fangda Group
East China
                           98,195,599.66                                98,195,599.66         90,101,031.20                                   90,101,031.20
Construction
Base Project

Design of
intelligent gluing             23,242.53                                    23,242.53                 23,242.53                                       23,242.53
robot

Standard
                              288,563.73                                   288,563.73            288,563.73                                         288,563.73
production line

Environmental
protection
                               87,049.23                                    87,049.23
equipment of
Xinjin base

Total                      98,594,455.15                                98,594,455.15        168,626,803.01                                  168,626,803.01


(2) Changes in major construction in process in this period

                                                                                                                                                        In RMB

                                                                                     Proporti
                                                                                                                             Includin
                                                 Amount                               on of
                                                                                                                                g:
                                                transfer-i                           accumul                 Accumul
                                                              Other                                                          capitaliz
                                     Increase      n to                               ative                       ative                  Interest
                         Opening                             decrease Closing                    Project                        ed                     Capital
  Item       Budget                  in this      fixed                            engineeri                 capitaliz                   capitaliz
                          balance                             in this    balance                 progress                    interest                  source
                                     period      assets in                              ng                         ed                    ation rate
                                                              period                                                          for the
                                                   this                            investme                  interest
                                                                                                                             current
                                                  period                             nt in the
                                                                                                                              period
                                                                                     budget

Construc
tion and
decoratio 82,840,0 78,213,9 3,545,29 81,759,2                                                    Complet 3,253,13                                     Self-own
                                                                                      98.70%
n of             00.00      65.55        0.29       55.84                                        ed                 6.04                              ed fund
self-use
part of



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Building
1 of
Fangda
Town

Fangda                                                                                                                              Loans
Group                                                                                                                               from
East                                                                                  In                                            financial
             105,060, 90,101,0 8,094,56                         98,195,5                             3,703,58 1,067,73
China                                                                        93.47% construct                             5.46% institutio
               000.00    31.20      8.46                           99.66                                 1.41     2.34
Construc                                                                              ion                                           ns+
tion Base                                                                                                                           self-own
Project                                                                                                                             ed fund

             187,900, 168,314, 11,639,8 81,759,2                98,195,5                             6,956,71 1,067,73
Total                                                                          --           --                                            --
               000.00   996.75     58.75       55.84               99.66                                 7.45     2.34


19. Use right assets

                                                                                                                                         In RMB

                 Item                   Houses & buildings             Transportation facilities                         Total

  1. Opening balance                                    5,889,664.28                        1,319,251.12                         7,208,915.40

  2. Increase in this period                           20,997,165.18                                                         20,997,165.18

  4. Closing balance                                   26,886,829.46                        1,319,251.12                     26,886,829.46

  2. Increase in this period                            2,136,566.18                             304,531.63                      2,441,097.81

       (1) Provision                                    2,136,566.18                             304,531.63                      2,441,097.81

  4. Closing balance                                    2,136,566.18                             304,531.63                      2,441,097.81

  1. Closing book value                                24,750,263.28                        1,014,719.49                     25,764,982.77

  2. Opening book value                                 5,889,664.28                        1,319,251.12                         7,208,915.40




20. Intangible assets

(1) Intangible assets

                                                                                                                                         In RMB

                                                                           Unpatented
          Item            Land using right             Patent                                          Software                  Total
                                                                           technologies

I. Book value

       1. Opening
                               80,404,737.13            8,982,747.17                                    19,357,024.16       108,744,508.46
balance

       2. Increase in                                                                                    1,450,061.46            1,450,061.46



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this period

         (1) Purchase                                                          1,450,061.46         1,450,061.46

  3. Decrease in this
period

     4. Closing
                         80,404,737.13       8,982,747.17                     20,807,085.62       110,194,569.92
balance

II. Accumulative
amortization

     1. Opening
                         15,075,529.76       8,472,024.78                      7,995,343.05        31,542,897.59
balance

     2. Increase in
                          1,147,670.62        103,185.07                         859,768.58         2,110,624.27
this period

         (1) Provision    1,147,670.62        103,185.07                         859,768.58         2,110,624.27

     3. Decrease in
this period

     4. Closing
                         16,223,200.38       8,575,209.85                      8,855,111.63        33,653,521.86
balance

III. Impairment
provision

     1. Opening
balance

     2. Increase in
this period

     3. Decrease in
this period

     4. Closing
balance

IV. Book value

     1. Closing book
                         64,181,536.75        407,537.32                      11,951,973.99        76,541,048.06
value

     2. Opening
                         65,329,207.37        510,722.39                      11,361,681.11        77,201,610.87
book value


(2) Failure to obtain the land use right certificates

At the end of the period, the Company had no land use right without the property right certificate.




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21. Long-term amortizable expenses

                                                                                                                         In RMB

                                              Increase in this    Amortized amount
           Item         Opening balance                                                  Other decrease       Closing balance
                                                  period            in this period

Decoration cost of
headquarters of
                                                   2,925,988.72             166,589.69                             2,759,399.03
Fangda Town
building No.1

Xuanfeng Chayuan
village and Zhuyuan
                             1,084,628.66                                    28,050.78                             1,056,577.88
village land transfer
compensation

Waterproofing works
for employee                  631,470.05                                     79,291.98                               552,178.07
dormitories

Warehouse addition
and renovation                572,782.87                                    120,489.30                               452,293.57
project

Plant ground
reconstruction                406,755.71              64,727.88              43,581.00                               427,902.59
project

Property insurance
                              360,772.95              79,923.61             116,279.12                               324,417.44
premium

Membership fees               413,749.88              15,000.00             117,500.04                               311,249.84

Rectification works
of rainwater and
                                                     328,751.71              21,916.80                               306,834.91
sewage diversion
pipeline

Others                       1,111,327.20            108,306.80             402,237.48                               817,396.52

Total                        4,581,487.32          3,522,698.72         1,095,936.19                               7,008,249.85




22. Differed income tax assets and differed income tax liabilities

(1) Non-deducted deferred income tax assets

                                                                                                                         In RMB

                                            Closing balance                                    Opening balance
            Item
                           Deductible temporary       Deferred income tax       Deductible temporary      Deferred income tax



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                                     difference                       assets                       difference                      assets

Assets impairment
                                        245,456,559.19                 46,067,705.01                  263,315,510.54                38,465,248.35
provision

Unrealized profit of
                                        135,859,744.95                 33,964,936.24                  135,859,744.95                33,964,936.24
internal transactions

Deductible loss                          98,962,421.46                 36,608,601.11                  122,522,156.58                29,105,371.97

Credit impairment
                                        209,492,239.65                 33,697,512.85                  212,717,683.70                44,512,473.69
provision

Unrealizable gross profit               118,170,953.89                 28,937,296.23                  130,105,754.96                31,898,500.96

Anticipated liabilities                  30,000,528.43                   7,068,448.87                  33,425,500.13                  7,715,527.38

Deferred earning                           2,155,083.48                    318,970.24                    2,314,029.86                   342,765.63

Change in fair value                         631,192.72                        94,678.94                 1,520,569.70                   228,085.49

Others                                                                                                   1,679,786.49                   416,426.25

Total                                   840,728,723.77                186,758,149.49                  903,460,736.91               186,649,335.96


(2) Non-deducted deferred income tax liabilities

                                                                                                                                               In RMB

                                                  Closing balance                                             Opening balance
            Item                 Taxable temporary          Deferred income tax                Taxable temporary          Deferred income tax
                                     difference                     liabilities                    difference                    liabilities

Change in fair value                  4,126,613,255.88              1,031,205,476.48                4,126,893,826.17             1,031,090,409.04

Estimated gross profit at
the time when the
recognized income of the                   4,152,000.00                  1,038,000.00
real estate project fails to
meet the tax obligation

Acquire premium to form
                                           1,535,605.48                    383,901.37                    1,535,605.47                   383,901.37
inventory

Rental income                            28,631,156.82                   7,157,789.20                  26,439,158.17                  6,609,789.56

Total                                 4,160,932,018.18              1,039,785,167.05                4,154,868,589.81             1,038,084,099.97


(3) Net deferred income tax assets or liabilities listed

                                                                                                                                               In RMB

                                                              Offset balance of               Deferred income tax           Offset balance of
                                Deferred income tax
                                                             deferred income tax             assets and liabilities at     deferred income tax
            Item               assets and liabilities at
                                                           assets or liabilities after        the beginning of the       assets or liabilities after
                               the end of the period
                                                                    offsetting                       period                      offsetting


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Deferred income tax
                                                            186,758,149.49                                             186,649,335.96
assets

Deferred income tax
                                                          1,039,785,167.05                                         1,038,084,099.97
liabilities


(4) Details of unrecognized deferred income tax assets

                                                                                                                              In RMB

                     Item                             Closing balance                                 Opening balance

Deductible temporary difference                                           56,487.23                                       130,889.01

Deductible loss                                                         6,884,305.40                                     7,336,111.24

Total                                                                   6,940,792.63                                     7,467,000.25


(5) Deductible losses of the un-recognized deferred income tax asset will expire in the following years

                                                                                                                              In RMB

              Year                   Closing amount                     Opening amount                          Remarks

2022                                          1,270,623.72                         1,270,623.72

2023                                          4,575,983.46                         4,575,983.46

2024                                            789,748.15                         1,276,235.76

2025                                            117,456.13                           213,268.30

2026                                            130,493.94

Total                                         6,884,305.40                         7,336,111.24                    --


23. Other non-current assets

                                                                                                                              In RMB

                                                      Closing balance                                 Opening balance
                     Item               Remaining        Impairment                      Remaining        Impairment
                                                                        Book value                                       Book value
                                        book value        provision                      book value        provision

                                        98,819,964.7                    90,747,550.7 81,494,380.5                        75,081,808.6
Contract assets                                          8,072,414.04                                     6,412,571.95
                                                     4                               0                6                               1

                                        16,557,772.4                    16,557,772.4 29,735,880.2                        29,735,880.2
Prepaid house and equipment amount
                                                     2                               2                4                               4

                                        115,377,737.                    107,305,323. 111,230,260.                        104,817,688.
Total                                                    8,072,414.04                                     6,412,571.95
                                                 16                               12              80                              85




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24. Short-term borrowings

(1) Classification of short-term borrowings

                                                                                                                        In RMB

                    Item                                Closing balance                           Opening balance

Loan by pledge                                                                                                   30,045,466.66

Guarantee loan                                                        10,012,083.34                             200,013,291.68

Credit borrow                                                        490,203,611.11                             346,029,354.19

Discount loans such as bills of
exchange                                                            674,415,505.30                            472,162,215.09
Total                                                              1,174,631,199.75                           1,048,250,327.62


25. Derivative financial liabilities

                                                                                                                        In RMB

                    Item                                Closing balance                           Opening balance

Forward foreign exchange contract                                                                                   915,234.93

Total                                                                                                               915,234.93




26. Notes payable

                                                                                                                        In RMB

                    Type                                Closing balance                           Opening balance

Commercial acceptance                                                144,096,887.36                             651,222,454.25

Bank acceptance                                                      540,201,722.38                             215,002,061.17

Total                                                                684,298,609.74                             866,224,515.42

The total amount of bills payable due and unpaid at the end of the period was RMB7,128,013.05 yuan, which was caused by the
other party's failure to prompt for payment.


27. Account payable

(1) Account payable

                                                                                                                        In RMB

                    Item                                Closing balance                           Opening balance

Account repayable and engineering
                                                                     807,191,590.64                             884,174,693.50
repayable



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Construction payable                                                      22,116,236.64                                98,783,841.73

Payable installation and implementation
                                                                         294,400,555.72                               295,439,323.67
fees

Others                                                                     4,252,626.14                                   4,450,130.01

Total                                                                  1,127,961,009.14                              1,282,847,988.91


(2) Significant payables aging more than 1 year

                                                                                                                               In RMB

                    Item                                 Closing balance                                    Reason

Supplier 1                                                                76,327,378.14 Not mature

Supplier 2                                                                19,433,026.36 Not mature

Supplier 3                                                                18,646,902.62 Not mature

Total                                                                    114,407,307.12                       --


28. Prepayment received

(1) Prepayment received

                                                                                                                               In RMB

                    Item                                 Closing balance                                Opening balance

Rent and others                                                            3,726,440.79                                   1,544,655.62

Total                                                                      3,726,440.79                                   1,544,655.62


29. Contract liabilities

                                                                                                                               In RMB

                    Item                                 Closing balance                                Opening balance

Project funds collected in advance                                       136,552,610.74                               195,922,455.76

Real estate sales payment                                                 27,779,823.59                                62,466,576.69

Payment for materials, etc                                                 2,583,050.70                                   7,098,080.67

Total                                                                    166,915,485.03                               265,487,113.12

The amount and reason for the significant change in the book value during the reporting period
                                                                                                                               In RMB

             Item                          Change                                              Reason

Project funds collected in                                       This is mainly due to the decrease in advance receipts due to the
                                                -59,369,845.02
advance                                                          revenue recognized in the current period of the project contract

Real estate sales payment                       -34,686,753.10 This is mainly due to the decrease in advance receipts due to the


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                                                               recognition of income from house delivery and occupation of
                                                               Nanchang Fangda Center project in this period

             Total                            -94,056,598.12                                  ——


30. Employees’ wage payable

(1) Employees’ wage payable

                                                                                                                            In RMB

            Item            Opening balance               Increase                     Decrease                Closing balance

1. Short-term
                                  60,855,743.99            153,476,290.98                187,488,204.44              26,843,830.53
remuneration

2. Retirement pension
program-defined                       38,452.79                 7,056,167.15               7,058,660.69                  35,959.25
contribution plan

3. Dismiss compensation                                           321,692.29                 321,692.29

Total                             60,894,196.78            160,854,150.42                194,868,557.42              26,879,789.78


(2) Short-term remuneration

                                                                                                                            In RMB

            Item            Opening balance               Increase                     Decrease                Closing balance

1. Wage, bonus,
                                  60,093,523.10            140,157,327.87                174,220,078.01              26,030,772.96
allowance and subsidies

2. Employee welfare                                             6,007,801.18               5,993,145.73                  14,655.45

3. Social insurance                     150.39                  2,931,793.61               2,931,944.00

     Including: medical
                                                                2,531,013.15               2,531,013.15
insurance

             Labor injury
                                        150.39                    104,357.72                 104,508.11
insurance

             Breeding
                                                                  296,422.74                 296,422.74
insurance

4. Housing fund                       41,608.00                 3,840,165.69               3,837,787.69                  43,986.00

5. Labor union budget
                                    564,651.81                    508,442.72                 505,249.01                 567,845.52
and staff education fund

6. Short-term paid leave            155,810.69                     30,759.91                                            186,570.60

Total                             60,855,743.99            153,476,290.98                187,488,204.44              26,843,830.53




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(3) Defined contribution plan

                                                                                                                       In RMB

            Item             Opening balance           Increase                      Decrease           Closing balance

1. Basic pension                        38,302.40          6,837,610.97                 6,839,954.12                35,959.25

2. Unemployment
                                          150.39             218,556.18                   218,706.57
insurance

Total                                   38,452.79          7,056,167.15                 7,058,660.69                35,959.25


31. Taxes payable

                                                                                                                       In RMB

                   Item                             Closing balance                             Opening balance

VAT                                                                   2,522,107.96                                4,241,613.97

Enterprise income tax                                              26,820,215.06                              14,495,521.72

Personal income tax                                                   1,033,200.45                                1,118,590.56

City maintenance and construction tax                                  624,407.20                                  814,163.97

Land using tax                                                         279,217.10                                  242,187.59

Property tax                                                          1,170,989.82                                 317,791.55

Education surtax                                                       350,180.76                                  432,267.04

Local education surtax                                                  95,625.85                                  169,248.62

Land VAT                                                              3,277,497.08                           337,655,257.61

Others                                                                  30,387.70                                  838,881.79

Total                                                              36,203,828.98                             360,325,524.42


32. Other payables

                                                                                                                       In RMB

                   Item                             Closing balance                             Opening balance

Dividend payable                                                                                                  6,000,000.00

Other payables                                                    158,525,255.26                             147,635,067.86

Total                                                             158,525,255.26                             153,635,067.86


(1) Dividend payable

                                                                                                                       In RMB

                   Item                             Closing balance                             Opening balance

Common share dividend                                                                                             6,000,000.00


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Total                                                                                                        6,000,000.00


(2) Other payables

1) Other payables presented by nature

                                                                                                                  In RMB

                   Item                         Closing balance                            Opening balance

Performance and quality deposit                               51,614,323.81                               37,137,147.11

Deposit                                                       20,500,389.65                               17,623,656.22

Reserved expense                                                  9,799,122.02                            10,861,930.30

Others                                                        76,611,419.78                               82,012,334.23

Total                                                        158,525,255.26                              147,635,067.86


(2) Significant payables aging more than 1 year

                                                                                                                  In RMB

                   Item                         Closing balance                                Reason

Shenzhen Yikang Real Estate Co. Ltd.                          25,062,852.92 Affiliated party payment

Total                                                         25,062,852.92                       --


33. Non-current liabilities due within 1 year

                                                                                                                  In RMB

                   Item                         Closing balance                            Opening balance

Long-term loans due within 1 year                            118,173,496.59                              103,359,833.57

Lease liabilities due within one year                             1,323,121.32                               2,106,913.21

Total                                                        119,496,617.91                              105,466,746.78


34. Other current liabilities

                                                                                                                  In RMB

                   Item                         Closing balance                            Opening balance

Unterminated notes receivable                                 19,329,820.88                               82,447,039.97

Substituted money on VAT                                      17,383,794.35                               25,241,385.72

Total                                                         36,713,615.23                              107,688,425.69




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35. Long-term borrowings

(1) Classification of long-term borrowings

                                                                                                                                              In RMB

                       Item                                        Closing balance                              Opening balance

Loan by pledge                                                                  115,661,462.35                                   231,295,035.65

Guarantee, mortgage and pledge loan                                           1,368,500,000.00                                   868,116,426.70

Total                                                                         1,484,161,462.35                                 1,099,411,462.35

Notes to classification of long-term borrowings:
The pledge in the above guarantee, mortgage and pledge loan is based on the 100% equity of Fangda Real Estate Co., Ltd., a
subsidiary of the Company, and lease and the rent receivable pledge of Fangda Town rental property.
Other note, including interest rate range:
The interest rate period of long-term loan is 3%-7%.


36. Lease liabilities

                                                                                                                                              In RMB

                       Item                                        Closing balance                              Opening balance

House lease                                                                      24,199,811.38                                        4,421,707.15

Other leases                                                                           419,368.32                                      680,295.04

                       Total                                                     24,619,179.70                                        5,102,002.19


37. Anticipated liabilities

                                                                                                                                              In RMB

                Item                             Closing balance                     Opening balance                        Reason

                                                                                                              Penalty for delay in handling
Pending lawsuit                                           25,683,696.08                       27,017,023.60
                                                                                                              certificate of title

Product quality warranty                                   4,316,832.35                        6,408,476.53 Product quality warranty

Total                                                     30,000,528.43                       33,425,500.13                    --

Note: including related significant assumptions and estimates for anticipated liabilities
For details of the matters involved in the litigation of liquidated damages, see description of ③ of XIII. Commitments and
contingencies 2. Contingencies (1).


38. Deferred earning

                                                                                                                                              In RMB

         Item                  Opening balance           Increase               Decrease               Closing balance               Reason



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                                                                                                                See the following
Government subsidy             9,168,492.17                                 325,310.66           8,843,181.51
                                                                                                                table

Total                          9,168,492.17                                 325,310.66           8,843,181.51               --

Items involving government subsidies:
                                                                                                                                 In RMB

                                               Amount       Other misc.
                                                                                                                            Related to
                 Opening       Amount of      included in      gains      Costs offset                     Closing
  Liabilities                                                                             Other change                  assets/earnin
                  balance      new subsidy non-operatin     recorded in   in the period                    balance
                                                                                                                                 g
                                              g revenue     this period

Railway
transport
screen door
controlling                                                                                                             Assets-relate
                  58,749.53                                    9,452.16                                    49,297.37
system and                                                                                                              d
information
transmission
technology

Major
investment
project prize
from Industry
and Trade                                                                                                               Assets-relate
                1,566,667.10                                  28,571.40                                  1,538,095.70
Development                                                                                                             d
Division of
Dongguan
Finance
Bureau

Distributed
PV power
generation
project
subsidy                                                                                                                 Assets-relate
                 368,750.21                                   12,499.98                                   356,250.23
sponsored by                                                                                                            d
Dongguan
Reform and
Development
Commission

Subsidized                                                                                                              Assets-relate
                 173,553.23                                    1,862.82                                   171,690.41
land transfer                                                                                                           d

Special
                                                                                                                        Assets-relate
subsidy for      800,000.00                                                                               800,000.00
                                                                                                                        d
industrial


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transformatio
n, upgrading
and
development

Enterprise
informationiz
ation subsidy
project of
Shenzhen                                                                                                                  Assets-relate
                  420,000.00                                    24,000.00                                  396,000.00
Small and                                                                                                                 d
Medium
Enterprise
Service
Agency

National
Industry
Revitalizatio
                                                                                                                          Assets-relate
n and           5,685,712.10                                  153,864.30                                 5,531,847.80
                                                                                                                          d
Technology
Renovation
Project fund

Shenzhen
Science and
Technology
Innovation                                                                                                                Earning-relat
                   95,060.00                                    95,060.00                                          0.00
Committee                                                                                                                 ed
Technology
Innovation
Subsidy

Total           9,168,492.17                                  325,310.66                                 8,843,181.51


39. Capital share

                                                                                                                                  In RMB

                                                                    Change (+,-)
                    Opening                                                                                                   Closing
                                    Issued new                       Transferred
                     balance                       Bonus shares                         Others          Subtotal              balance
                                      shares                        from reserves

Total of capital 1,088,278,951.                                                                                       1,073,874,227.
                                                                                    -14,404,724.00 -14,404,724.00
shares                         00                                                                                                       00

Others:
① The decrease in share capital was due to the cancellation of B shares repurchased by the Company during the reporting period.
② As of June 30, 2021, there are 2,302,093 shares with limited sales conditions in the closing balance, all of which are held by

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senior executives.


40. Capital reserve

                                                                                                                                In RMB

           Item                Opening balance                Increase                     Decrease               Closing balance

Capital premium (share
                                      19,005,491.05             123,294,737.60               21,542,953.69            123,294,737.60
capital premium)

Other capital reserves                 1,454,097.35                                                                        1,454,097.35

Total                                 20,459,588.40             123,294,737.60               21,542,953.69             122,211,372.31

Other note, including explanation about the reason of the change:
The increase of RMB123,294,737.60 yuan in capital reserve in the current period is due to the premium transfer of part of the equity
of Zhichuang Technology, a holding subsidiary of the Company; The capital reserve decreased by RMB21,542,953.69 yuan in the
current period due to the Company's acquisition of 100% equity of Yunzhu.


41. Shares in stock

                                                                                                                                In RMB

           Item                Opening balance                Increase                     Decrease               Closing balance

Shares in stock                       42,748,530.12                                          42,748,530.12

Total                                 42,748,530.12                                          42,748,530.12

Other note, including explanation about the reason of the change:
At the second meeting of the ninth board of directors held on June 23, 2020, the Company considered and approved the proposal to
repurchase part of the Company's domestic listed foreign shares (B shares) in 2020. From July 23, 2020 to September 22, 2020,
14,404,724 shares were repurchased through centralized competitive bidding, the highest price was HK $3.47/share and the lowest
price was HK $3.16/share. The actual payment was HK $48,359,819.24 (including transaction costs), which was included in treasury
shares of RMB 42,748,530.12. On April 23, 2021, the Company completed the cancellation of the repurchase of 14,404,724 B shares,
reduced the share capital of 14,404,724 shares and offset the surplus reserve of RMB28,343,806.12.


42. Other miscellaneous income

                                                                                                                                In RMB

                                                                     Amount occurred in the current period

                                                              Less: amount      Less:
                                                                                                                  After-tax
                                                              written into     amount
                                                                                                      After-tax    amount
                                                               other gains     written      Less:
                                     Opening      Amount                                              amount     attributed Closing
               Item                                                 and       into other   Income
                                      balance      before                                             attributed      to    balance
                                                               transferred    gains and      tax
                                                 income tax                                            to the      minority
                                                              into gain/loss transferred expenses
                                                                                                       parent     shareholde
                                                               in previous       into
                                                                                                                      rs
                                                                    terms     gain/loss


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                                                                                     in
                                                                                previous
                                                                                  terms

1. Other misc. incomes that
                                      -11,670,984. -229,678.5                                            -229,678.5                -11,900,
cannot be re-classified into gain
                                                54           9                                                    9                 663.13
and loss

        Fair value change of          -11,670,984. -229,678.5                                            -229,678.5                -11,900,
investment in other equity tools                54           9                                                    9                 663.13

2. Other misc. incomes that will      13,749,152. 1,207,423.                                 358,625.7 228,217.8                   13,977,3
                                                                   643,973.21                                         -23,393.41
be re-classified into gain and loss             17          43                                       8            5                  70.02

                                      5,150,331.2 -318,749.8                                -144,408.4 -785,690.8                  4,364,64
        Cash flow hedge reserve                                    643,973.21                                         -32,623.68
                                                 9           0                                       5            8                     0.41

        Translation difference of                    -485,963.6                                          -495,193.9                -652,926
                                      -157,732.58                                                                      9,230.27
foreign exchange statement                                   9                                                    6                      .54

Investment real estate measured at 8,756,553.4 2,012,136.                                    503,034.2 1,509,102.                  10,265,6
fair value                                       6          92                                       3           69                  56.15

                                      2,078,167.6 977,744.8                                  358,625.7                             2,076,70
Other miscellaneous income                                         643,973.21                             -1,460.74 -23,393.41
                                                 3           4                                       8                                  6.89


43. Surplus reserves

                                                                                                                                    In RMB

             Item               Opening balance                   Increase                   Decrease                 Closing balance

Statutory surplus
                                       106,783,436.96                                          106,783,436.96
reserves

Total                                  106,783,436.96                                          106,783,436.96

Note, including explanation about the reason of the change:
If the cost of treasury shares written off in the current period is higher than the corresponding capital stock cost, the surplus reserve of
RMB28,343,806.12 yuan is offset at the time of write off; The acquisition of 100% equity of Yunzhu in the current period offset the
surplus reserve of RMB78,439,630.84 yuan.


44. Retained profit

                                                                                                                                    In RMB

                        Item                                        Current period                              Last period

Adjustment on retained profit of previous period                             4,215,005,541.52                            3,898,626,177.99

Total of retained profit at beginning of year
                                                                                  2,521,701.04                                9,026,682.67
adjusted (+ for increase, - for decrease)

Retained profit adjusted at beginning of year                                4,217,527,242.56                            3,907,652,860.66



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Plus: Net profit attributable to owners of the
                                                                               111,488,701.33                           147,784,781.12
parent

Common share dividend payable                                                                                            54,413,947.55

     Adjustment to consolidation of entities under
                                                                                24,107,813.58
common control

Closing retained profit                                                       4,304,908,130.31                         4,001,023,694.23

Details of retained profit adjusted at beginning of the period
1) Retrospective adjustment due to adopting of the Enterprise Accounting Standard and related regulations, included the retained
profit by RMB0.
2) Variation of accounting policies, influenced the retained profit by RMB0.00.
3) Correction of material accounting errors, influenced the retained profit by RMB0.00.
4) Change of consolidation range caused by merger of entities under common control, influenced the retained profit by RMB0.
5) Other adjustment influenced the retained profit by RMB0.


45. Operational revenue and costs

                                                                                                                                   In RMB

                                    Amount occurred in the current period                        Occurred in previous period
             Item
                                       Income                      Cost                        Income                    Cost

Main business                        1,500,250,618.47            1,201,118,172.57           1,203,907,359.56            966,357,682.01

Other businesses                        68,528,216.51               7,523,630.61                52,350,863.45              5,890,231.85

Total                                1,568,778,834.98            1,208,641,803.18           1,256,258,223.01            972,247,913.86

Income information:
                                                                                                                                   In RMB

     Contract             Segment        Segment 2 - rail    Segment 3 - real Segment 4 - new Segment 5 - other
                                                                                                                               Total
   classification     1-curtain wall      transit division   estate segment           energy            segments

Type of product     1,097,171,007.07      267,687,038.55      188,235,871.36         8,323,350.81       7,361,567.20 1,568,778,834.98

   Including:

Curtain wall
system and          1,097,171,007.07                                                                                   1,097,171,007.07
materials

Subway screen
                                          267,687,038.55                                                                267,687,038.55
door and service

Real estate sales                                             188,235,871.36                                            188,235,871.36

PV power
generation                                                                           8,323,350.81                          8,323,350.81
products

Others                                                                                                  7,361,567.20       7,361,567.20


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Total               1,097,171,007.07     267,687,038.55      188,235,871.36       8,323,350.81        7,361,567.20 1,568,778,834.98

Information related to performance obligations:
The two businesses of the Company's curtain wall system and materials, subway screen doors and services are mainly
the contracts corresponding to the engineering projects. Usually, a contract constitutes a single performance
obligation and is a performance obligation performed within a certain period of time. The Company recognizes
revenue according to the performance progress.
The sales of photovoltaic power generation products and real estate belong to contracts corresponding to commodity
sales. Usually, a contract constitutes a single performance obligation and is a performance obligation at a certain
point in time. Revenue is recognized when the customer obtains control of the relevant product.


Information related to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period, the amount of revenue corresponding to the performance obligations that have been signed but
have not been performed or completed is RMB5,996,487,536.97 yuan, of which RMB2,009,854,086.60 yuan is expected to be
recognized in the second half of 2021, RMB2,926,253,777.06 yuan is expected to be recognized in 2022, and RMB1,060,379,673.31
yuan is expected to be recognized in 2023 and later years.
Other note
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.3 – Listed Companies Engaged in Property Development.
Top-5 projects in terms of income received and recognized in the reporting period:
                                                                                                                                 In RMB

                    No.                                         Item                                        Balanace

                     1                       Fangda Town                                                               35,672,181.90

                     2                       Nanchang Fangda Center                                                    63,168,965.12


46. Taxes and surcharges

                                                                                                                                 In RMB

                    Item                       Amount occurred in the current period               Occurred in previous period

City maintenance and construction tax                                      3,078,129.75                                 2,421,623.93

Education surtax                                                           1,915,966.95                                 1,711,891.44

Property tax                                                               2,864,691.90                                 2,227,891.98

Land using tax                                                                751,644.13                                  684,461.08

Vehicle usage tax                                                              51,320.40                                    9,780.00

Stamp tax                                                                  1,249,671.01                                   475,666.06

Land VAT                                                                  25,705,049.49

Others                                                                        237,220.25                                   58,508.26

Total                                                                     35,853,693.88                                 7,589,822.75




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47. Sales expense

                                                                                                               In RMB

                    Item          Amount occurred in the current period          Occurred in previous period

Labor costs                                                10,473,510.26                             10,938,678.79

Sales agency fee                                            7,400,124.58                              1,726,247.64

Entertainment expense                                       2,041,529.62                                888,653.78

Travel expense                                                793,223.58                                503,408.24

Advertisement and promotion fee                               716,856.99                                934,902.84

Rental                                                      1,297,595.54                              1,125,898.88

Office costs                                                  398,521.93                                262,176.26

Material consumption                                          367,137.80                                490,460.47

Others                                                      1,946,414.51                              4,373,115.41

Total                                                      25,434,914.81                             21,243,542.31


48. Management expense

                                                                                                               In RMB

                    Item          Amount occurred in the current period          Occurred in previous period

Labor costs                                                42,525,730.63                             39,047,937.75

Maintenance costs                                           3,088,854.95                              2,003,855.95

Agencies                                                    4,747,575.30                              5,871,925.65

Depreciation and amortization                               4,238,728.47                              4,118,354.72

Office expense                                              3,742,123.03                              4,388,983.49

Entertainment expense                                       2,159,401.56                              1,549,406.05

Rental                                                      1,171,537.38                              1,166,665.68

Lawsuit                                                     2,650,332.80                                274,438.54

Travel expense                                                870,897.82                                675,099.35

Property management fee                                       728,524.88                                414,235.37

Water and electricity                                         385,129.66                                104,054.76

Material consumption                                          719,301.89                                161,161.21

Others                                                      2,474,315.56                              3,420,857.36

Total                                                      69,502,453.93                             63,196,975.88


49. R&D cost

                                                                                                               In RMB

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                     Item                     Amount occurred in the current period          Occurred in previous period

Labor costs                                                            47,607,487.83                             29,168,628.85

Material costs                                                         23,898,889.12                             17,682,878.47

Agencies                                                                3,027,319.72                              2,526,263.58

Rental                                                                    992,048.08                              1,105,564.58

Depreciation costs                                                        788,799.38                                737,427.60

Amortization of intangible assets                                         507,608.85                                578,107.24

Travel expense                                                            176,681.32                                 34,950.20

Others                                                                  1,646,760.56                                662,340.73

Total                                                                  78,645,594.86                             52,496,161.25


50. Financial expense

                                                                                                                           In RMB

                     Item                     Amount occurred in the current period          Occurred in previous period

Interest expense                                                       46,707,567.90                             46,974,588.65

Less: interest capitalization                                           3,070,467.85                              3,809,610.82

Less: discount government subsidies

Less: Interest income                                                   6,976,161.44                              6,956,602.08

Acceptant discount                                                      5,472,503.74                              6,049,511.72

Exchange gain/loss                                                      1,703,136.52                               -311,399.26

Commission charges and others                                           3,000,733.43                              2,935,649.45

Total                                                                  46,837,312.30                             44,882,137.66


51. Other gains

                                                                                                                           In RMB

                   Source                     Amount occurred in the current period          Occurred in previous period

Government subsidies related to deferred
                                                                          206,250.66                                158,379.99
income (related to assets)

Government subsidies related to deferred
                                                                           95,060.00                                 34,980.00
income (related to income)

Government subsidies directly included in
current profits and losses (related to                                  5,791,459.18                              2,893,461.97
income)

Other items related to daily activities and
                                                                          514,288.22                              3,127,290.81
included in other income



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Total                                                                        6,607,058.06                              6,214,112.77


52. Investment income

                                                                                                                                In RMB

                      Item                            Amount occurred in the current period        Occurred in previous period

Gains from long-term equity investment
                                                                                  -452,893.65                           -375,202.09
measured by equity

Investment income from disposal of trading
                                                                                 2,953,049.83                          2,297,898.75
financial assets and derivative financial assets

Financial assets derecognised as a result of
                                                                                -3,032,899.72                          -2,255,794.10
amortized cost

Others                                                                                                                  -309,081.13

Total                                                                             -532,743.54                           -642,178.57


53. Income from fair value fluctuation

                                                                                                                                In RMB

 Source of income from fluctuation of fair
                                                   Amount occurred in the current period          Occurred in previous period
                   value

Transactional financial assets                                                                                            41,277.62

Other non-current financial assets                                             172,829.74                                  9,107.28

Total                                                                          172,829.74                                 50,384.90


54. Credit impairment loss

                                                                                                                                In RMB

                    Item                           Amount occurred in the current period          Occurred in previous period

Bad debt loss of other receivables                                           1,139,984.05                               -712,877.78

Bad debt loss of account receivable                                         18,713,432.01                             55,383,671.10

Total                                                                       19,853,416.06                             54,670,793.32


55. Assets impairment loss

                                                                                                                                In RMB

                    Item                           Amount occurred in the current period          Occurred in previous period

Contract asset impairment loss                                               3,466,913.89                             20,219,822.04

Total                                                                        3,466,913.89                             20,219,822.04




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56. Assets disposal gains

                                                                                                                             In RMB

                    Source                    Amount occurred in the current period            Occurred in previous period

Gain and loss from disposal of fixed assets
                                                                         -2,027,304.03                                   -1,981.72
("-" for loss)


57. Non-business income

                                                                                                                             In RMB

                                 Amount occurred in the current                                      Amount accounted into the
                 Item                                               Occurred in previous period
                                              period                                                 current accidental gain/loss

Penalty income                                         195,216.06                      172,413.23                       195,216.06

Payable account not able to be
                                                       539,817.35                                                       539,817.35
paid

Compensation received                                   36,000.00                         4,740.00                       36,000.00

Others                                                 430,073.05                      103,468.04                       430,073.05

Total                                              1,201,106.46                        280,621.27                     1,201,106.46


58. Non-business expenses

                                                                                                                             In RMB

                                 Amount occurred in the current                                      Amount accounted into the
                 Item                                               Occurred in previous period
                                              period                                                 current accidental gain/loss

Donation                                           3,127,302.00                       5,113,500.00                    3,127,302.00

Loss from retirement os
                                                       101,810.29                      123,770.81                       101,810.29
damaged non-current assets

Penalty and overdue fine                                54,643.82                         3,731.07                       54,643.82

Others                                                 196,618.40                        34,866.45                      196,618.40

Total                                              3,480,374.51                       5,275,868.33                    3,480,374.51


59. Income tax expenses

(1) Details about income tax expense

                                                                                                                             In RMB

                        Item                  Amount occurred in the current period            Occurred in previous period

Income tax expenses in this period                                       9,913,372.73                               16,599,518.26

Deferred income tax expenses                                             4,023,120.93                                 5,659,613.66


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Total                                                                    13,936,493.66                             22,259,131.92


(2) Adjustment process of accounting profit and income tax expense

                                                                                                                             In RMB

                                 Item                                          Amount occurred in the current period

Total profit                                                                                                      129,123,964.15

Income tax expenses calculated based on the legal (or applicable)
                                                                                                                   32,280,991.04
tax rates

Impacts of different tax rates applicable for some subsidiaries                                                   -10,512,008.61

Impacts of income tax before adjustment                                                                                  33,438.03

Impacts of non-deductible cost, expense and loss                                                                       1,291,544.82

Impacts of using deductible loss of unrecognized deferred
                                                                                                                          -2,863.58
income tax assets

Deductible temporary difference and deductible loss of
                                                                                                                        130,493.94
unrecognized deferred income tax assets

Profit and loss of associates and joint ventures calculated using
                                                                                                                        113,223.41
the equity method

Taxation impact of R&D expense and (presented with “-”)                                                          -9,398,325.39

Income tax expenses                                                                                                13,936,493.66


60. Other miscellaneous income

See Note VII 42.


61. Notes to the cash flow statement

(1) Other cash inflow related to operation

                                                                                                                             In RMB

                    Item                        Amount occurred in the current period          Occurred in previous period

Interest income                                                           3,844,284.17                                 3,910,905.13

Subsidy income                                                            2,962,771.94                                 2,675,134.41

Retrieving of bidding deposits                                           29,885,356.39                            194,526,618.44

Other operating accounts                                                 55,055,405.87                             12,873,603.24

Total                                                                    91,747,818.37                            213,986,261.22




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(2) Other cash paid related to operation

                                                                                                                       In RMB

                    Item                  Amount occurred in the current period          Occurred in previous period

Management and R&D expenses                                        14,947,949.40                             16,820,091.22

Sales expense                                                       6,908,552.06                              2,200,543.16

Bidding deposit paid                                               15,899,280.00                             50,058,802.62

Net draft deposit net paid                                        144,928,637.13                            129,561,924.62

Lawsuit freezing funds                                                                                       61,699,121.88

Other trades                                                        9,718,831.22                             17,225,493.04

Total                                                             192,403,249.81                            277,565,976.54


(3) Other cash received related to investment activities

                                                                                                                       In RMB

                    Item                  Amount occurred in the current period          Occurred in previous period

Other investment-related cash received                                                                                 250.00

Total                                                                                                                  250.00


(4) Other cash paid related to investment activities

                                                                                                                       In RMB

                    Item                  Amount occurred in the current period          Occurred in previous period

Other cash paid for investment                                      1,323,355.15

Total                                                               1,323,355.15


(5) Other cash paid related to financing activities

                                                                                                                       In RMB

                    Item                  Amount occurred in the current period          Occurred in previous period

Bill of exchange discounted loan margin                           228,210,000.00                            181,300,000.00

B share repurchase expenses                                                                                  99,998,965.99

Loan pledged by certificate of deposit                            300,000,000.00

Repayment of principal and interest of
                                                                    1,150,479.34
lease liabilities

Total                                                             529,360,479.34                            281,298,965.99




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62. Supplementary data of cash flow statement

(1) Supplementary data of cash flow statement

                                                                                                                      In RMB

         Supplementary information                 Amount of the Current Term             Amount of the Previous Term

1. Net profit adjusted to cash flow related to
                                                               --                                      --
business operations:

     Net profit                                                     115,187,470.49                            147,858,243.06

     Plus: Asset impairment provision                               -23,320,329.95                            -74,890,615.36

            Fixed asset depreciation, gas and
petrol depreciation, production goods                                 12,694,795.70                            11,802,786.53
depreciation

            Depreciation of right to use assets                        2,441,097.81

            Amortization of intangible assets                          2,110,624.27                             2,117,631.57

            Amortization of long-term
                                                                       1,095,936.19                               609,394.73
amortizable expenses

            Loss from disposal of fixed assets,
intangible assets, and other long-term assets                          2,027,304.03                                 1,981.72
(“-“ for gains)

            Loss from fixed asset discard (“-
                                                                        101,810.29                                123,770.81
“ for gains)

            Loss from fair value fluctuation “-
                                                                        -172,829.74                               -50,384.90
“ for gains)

            Financial expenses ““ for gains)                        50,128,451.89                            49,214,489.55

            Investment losses (“-“ for gains)                       -2,500,156.18                            -1,613,615.53

            Decrease of deferred income tax
                                                                       -108,813.53                             10,311,829.50
asset (“-“ for increase)

            Increase of deferred income tax
                                                                       1,701,067.08                            -4,365,349.25
asset (“-“ for increase)

            Decrease of inventory (“-“ for
                                                                      63,137,528.73                           -46,192,352.00
increase)

            Decrease of operational receivable
                                                                      25,896,769.11                          -141,439,156.06
items (“-“ for increase)

            Increase of operational receivable
                                                                    -851,232,377.90                           -55,880,612.56
items (“-“ for decrease)

            Others                                                    99,887,106.71                           -36,535,306.13

            Cash flow generated by business                         -500,924,545.00                          -138,927,264.32



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operations, net

2. Major investment and financing activities
                                                                   --                                       --
with no cash involved:

     Debt transferred to assets

     Convertible corporate bonds due within
one year

     Fixed assets under finance leases

3. Net change in cash and cash equivalents:                        --                                       --

     Balance of cash at period end                                       587,299,086.12                            613,753,872.41

     Less: Initial balance of cash                                      1,028,386,529.73                           730,933,482.19

     Add: Ending balance of cash
equivalents

     Less: Ending balance of cash
equivalents

     Net increase in cash and cash
                                                                        -441,087,443.61                           -117,179,609.78
equivalents


(2) Net cash paid to subsidiaries acquired in the current period

                                                                                                                           In RMB

                                                                                                Amount

Cash or cash equivalents paid by the business combination in the
                                                                                                                   125,388,100.00
current period

Including: Net cash paid for acquiring subsidiaries                                                                125,388,100.00


(3) Composition of cash and cash equivalents

                                                                                                                           In RMB

                      Item                                Closing balance                            Opening balance

I. Cash                                                                  587,299,086.12                          1,028,386,529.73

Including: Cash in stock                                                       9,176.73                                    482.09

          Bank savings can be used at any time                           554,736,008.92                          1,013,118,829.42

          Other monetary capital can be used at
                                                                          32,553,900.47                             15,267,218.22
any time

III. Balance of cash and cash equivalents at
                                                                         587,299,086.12                          1,028,386,529.73
end of term

Including: restricted cash and cash
                                                                         658,832,074.53                            435,587,632.71
equivalent used by parent company or



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subsidiaries in the Group


63. Assets with restricted ownership or use rights

                                                                                                                          In RMB

                      Item                             Closing book value                              Reason

                                                                                      Margin, pledge and judicial frozen deposit,
Monetary capital                                                    658,832,074.53
                                                                                      etc

Inventory                                                            87,429,489.76 Credit Mortgage, Mortgage Loan

Fixed assets                                                        113,877,697.76 Credit Mortgage, Mortgage Loan

Intangible assets                                                    18,869,282.56 Loan by pledge

Account receivable                                                   42,595,672.31 Loan by pledge

Investment real estate                                             4,161,289,402.27 Loan by pledge

100% stake in Fangda Property
                                                                    200,000,000.00 Loan by pledge
Development held by the Company

Total                                                              5,282,893,619.19                       --


64. Foreign currency monetary items

(1) Foreign currency monetary items

                                                                                                                          In RMB

                                  Closing foreign currency
               Item                                                    Exchange rate                  Closing RMB balance
                                          balance

Monetary capital                             --                               --                                   75,185,722.28

Including: USD                                     4,628,223.20                       6.460100                     29,898,784.69

        Euro                                               0.83                       7.686200                              6.38

        HK Dollar                                 34,961,409.39                       0.832080                     29,090,689.53

        INR                                       17,058,783.99                       0.086946                      1,483,193.03

        Vietnamese currency                  302,393,210.00                           0.000281                         84,851.33

        SGD                                            2,000.30                       4.811898                          9,625.24

        AUD                                        3,012,399.90                       4.852799                     14,618,572.08

Account receivable                           --                                               --                   11,671,200.48

Including: USD                                      697,734.93                        6.460100                      4,507,437.42

        AUD                                        1,476,212.52                       4.852799                      7,163,763.06

Contract assets                                                                                                    20,705,194.94

Including: USD                                     2,728,310.81                       6.460100                     17,625,160.66



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        INR                                         35,424,680.60                         0.086946                  3,080,034.27

Contract liabilities                                                                                               42,853,498.22

Including: USD                                       2,581,815.62                         6.460100                 16,678,787.09

        HK Dollar                                   31,456,964.64                         0.832080                 26,174,711.14

Other receivables                                                                                                   1,445,917.29

Including: USD                                         174,206.31                         6.460100                  1,125,390.18

        HK Dollar                                       63,000.00                         0.832080                     52,421.04

        INR                                          2,519,593.00                         0.086946                    219,068.53

        AUD                                             10,105.00                         4.852799                     49,037.54

Account payable                                                                                                     4,574,128.13

Including: USD                                         708,058.41                         6.460100                  4,574,128.13

Other payables                                                                                                        390,244.49

Including: USD                                          57,548.51                         6.460100                    371,769.13

        HK Dollar                                          100.00                         0.832080                         83.21

        Vietnamese currency                         65,545,950.00                         0.000281                     18,392.15


(2) The note of overseas operating entities should include the main operation places, book keeping
currencies and selection basis. Where the book keeping currency is changed, the reason should also be
explained.

□ Applicable √ Inapplicable


65. Hedging

Hedging items and related tools, qualitative and quantitative information about hedging risks:

         Type                 Hedged item           Hedging tools                           Hedged risk
                         Forward
                                                   Aluminum             The price of raw materials has risen, leading
                         transaction of
                                                   futures              to an increase in expected transaction
                         aluminum sheet
                                                   contract;            procurement costs;
                         purchase;
 Cash flow hedging
                                                   Forward
                         Forward foreign
                                                   foreign              The depreciation of foreign currency leads to
                         exchange
                                                   exchange             the decrease of actual collection
                         transaction
                                                   contract




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66. Government subsidy

(1) Government subsidy profiles

                                                                                                                   In RMB

                                                                                          Amount accounted into the
                Type               Amount                             Item
                                                                                               current gain/loss

Enterprise informationization
subsidy project of Shenzhen
                                        4,200,000.00 Deferred earning                                        24,000.00
Small and Medium Enterprise
Service Agency

VAT rebated into revenue                2,975,710.51 Other gains                                          2,975,710.51

R&D subsidy from Shenzhen
Science and Technology                  1,023,500.00 Other gains                                          1,023,500.00
Innovation Commission

2020 industrial added value
                                            664,600.00 Other gains                                          664,600.00
award project

Support for steady industrial
                                            637,000.00 Other gains                                          637,000.00
growth in Shenzhen

VAT plus deduction                          251,399.27 Other gains                                          251,399.27

National Industry Revitalization
and Technology Renovation                   153,864.30 Deferred earning                                     153,864.30
Project fund

Technology research and
development award of Finance
Bureau of Management                        123,700.00 Other gains                                          123,700.00
Committee of Nanchang
High-tech Development Zone

Others                                      812,033.51 Other gains/deferred gains                           753,283.98

Total                                  10,841,807.59                                                      6,607,058.06


(2) Government subsidy refund

□ Applicable √ Inapplicable




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VIII. Change to Consolidation Scope

1. Consolidation of entities under common control

(1) Merger of companies under the common control during the report period

                                                                                                                                        In RMB

                                                                                                Net profit of
                                                                                Income of the
                                 Basis for                                                           the                         Net profit of
                                                                                consolidated                     Income of the
               Proportion of judgment of                                                        consolidated                          the
                                                               Determinatio      party from                      consolidated
                    equity       merger of                                                       party from                      consolidated
Consolidated                                   Consolidatio      n basis of     the beginning                    party during
                obtained in     companies                                                       the beginning                     party during
    party                                         n date       consolidation of the current                           the
                   business      under the                                                      of the current                        the
                                                                    date        period to the                    consolidation
               consolidation     common                                                         period to the                    consolidation
                                                                                consolidation                       period
                                  control                                                       consolidation                       period
                                                                                    date
                                                                                                    date

                               The ultimate
                               controlling
                               party of the
                                                               Obtaining the
Shenzhen                       Company and
                                                               actual control
Yunzhu                         Yunzhu          Thursday,
                     100.00%                                   right of the      3,390,588.25      17,512.89 4,650,158.59 1,049,885.06
Industrial                     before and      April 8, 2021
                                                               acquired
Co., Ltd.                      after the
                                                               party
                               consolidation
                               is Mr. Xiong
                               Jianming


(2) Consolidation costs

                                                                                                                                        In RMB

                        Combination costs

--Cash                                                                                                                       125,388,100.00


(3) Book value of assets and liabilities of the consolidated party on the consolidation date

                                                                                                                                        In RMB

                    Item                                   Consolidation date                                 End of last period

Assets:                                                                         15,175,632.19                                    24,603,069.69

Monetary capital                                                                 2,128,872.25                                     4,134,142.34

Receivables                                                                       995,631.44                                       757,006.79

Inventory                                                                        1,276,334.40



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Fixed assets                                                                      52,890.36                                55,650.37

Intangible assets                                                                  7,934.87                                  8,785.04

Transactional financial assets                                                3,155,680.40                             10,331,880.99

Contract assets                                                               5,748,854.44                              8,559,360.21

Prepayment                                                                      333,438.89                                259,671.72

Others                                                                        1,475,995.14                                496,572.23

Liabilities:                                                                  2,356,229.26                             11,801,179.65

Borrowing                                                                         37,186.48                                       0.00

Payable                                                                       2,319,042.78                             11,801,179.65

Net assets                                                                   12,819,402.93                             12,801,890.04

Less: minor shareholders’ equity                                                      0.00                             1,280,189.00

Acquired net assets                                                          12,819,402.93                             11,521,701.04

Contingent liabilities of the consolidated party assumed in the business consolidation:
None
Others:
None


2. Disposal of subsidiaries

Single disposal of a subsidiary that may lead to loss of control
□ Yes √ No
Disposal of a subsidiary in multiple steps that lead to loss of control in the report period
□ Yes √ No


3. Change to the consolidation scope for other reasons

Change in the consolidation scope due to other reasons (such as new subsidiaries and liquidation of subsidiaries) and the situations:
None


IX. Equity in Other Entities

1. Interests in subsidiaries

(1) Group Composition


                                             Registered                               Shareholding percentage
    Company           Place of business                          Business                                          Obtaining method
                                              address                                 Direct          Indirect

                                                            Designing,
Fangda Jianke       Shenzhen              Shenzhen                                         98.39%           1.61% Incorporation
                                                            manufacturing,



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                                                     and installation of
                                                     curtain walls

                                                     Production,
                                                     processing and
Fangda
                   Shenzhen         Shenzhen         installation of                               83.10% Incorporation
Zhichuang
                                                     subway screen
                                                     doors

                                                     Prodution and
                                                     sales of new-type
                                                     materialsm
Fangda New
                   Nanchang         Nanchang         composite                   75.00%            25.00% Incorporation
Material
                                                     materials and
                                                     production of
                                                     curtain walls

                                                     Real estate
Fangda Property Shenzhen            Shenzhen         development and             99.00%             1.00% Incorporation
                                                     operation

                                                     Design and
Fangda New
                   Shenzhen         Shenzhen         construction of             99.00%             1.00% Incorporation
Energy
                                                     PV power plants

                                                     Trusted
                                                     processing of
Chengdu Fangda Chengdu              Chengdu                                                       100.00% Incorporation
                                                     building curtain
                                                     wall materials

Shihui
                   Virgin Islands   Virgin Islands   Investment                 100.00%                    Incorporation
International

                                                     Installation and
Dongguan New
                   Dongguan         Dongguan         sales of building                            100.00% Incorporation
Material
                                                     curtain walls

Fangda Property                                      Property
                   Shenzhen         Shenzhen                                                      100.00% Incorporation
Management                                           management

                                                     Real estate
Jiangxi Property
                   Nanchang         Nanchang         development and                              100.00% Incorporation
Development
                                                     operation

                                                     Design and
Luxin New
                   Pingxiang        Pingxiang        construction of                              100.00% Incorporation
Energy
                                                     PV power plants

                                                     Design and
Xinjian New
                   Nanchang         Nanchang         construction of                              100.00% Incorporation
Energy
                                                     PV power plants

Dongguan New       Dongguan         Dongguan         Design and                                   100.00% Incorporation


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Energy                                     construction of
                                           PV power plants

Kechuangyuan                               Software
                   Shenzhen    Shenzhen                                                  83.10% Incorporation
Software                                   development

Fangda
Zhichuang
Science and                                Metro screen
                   Hong Kong   Hong Kong                                                 83.10% Incorporation
Technology                                 door
(Hong Kong) Co.,
Ltd.

Hongjun
Investment         Shenzhen    Shenzhen    Investment                  98.00%             2.00% Incorporation
Company

                                           Designing,
Fangda Australia                           manufacturing,
                   Australia   Australia                                                100.00% Incorporation
Co., Ltd.                                  and installation of
                                           curtain walls

                                           Design,
                                           development and
Fangda Cloud
                   Shenzhen    Shenzhen    sales of cloud rail                          100.00% Incorporation
Rail
                                           transport
                                           equipment

                                           Building
Chengda Curtain                            decoration and
                   Chengdu     Chengdu                                                  100.00% Incorporation
Wall Company                               other construction
                                           industry

                                           Designing,
Fangda Southeast                           manufacturing,
                   Vietnam     Vietnam                                                  100.00% Incorporation
Asia                                       and installation of
                                           curtain walls

                                           Intelligent
                                           technology, new
Shanghai Zhijian Shanghai      Shanghai    energy,                     30.00%            70.00% Incorporation
                                           automated
                                           technology

                                           Construction
                                           technology,
                                           intelligent
Shanghai Jianzhi Shanghai      Shanghai    technology,                                  100.00% Incorporation
                                           automation
                                           technology,
                                           design,

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                                                           production and
                                                           installation of
                                                           building curtain
                                                           walls

Zhongrong Litai     Shenzhen           Shenzhen            Business service                                  55.00% Purchase

Fangda
                                                           Project
Investment
                                                           investment and
Partnership         Shenzhen           Shenzhen                                           99.00%              0.52% Incorporation
                                                           investment
(Limited
                                                           consultancy
Partnership)

                                                           Project
                                                           investment and
Lifu Investment     Shenzhen           Shenzhen                                                              52.00% Incorporation
                                                           investment
                                                           consultancy

                                                           Project
                                                           investment and
Xunfu Investment Shenzhen              Shenzhen                                                            100.00% Incorporation
                                                           investment
                                                           consultancy

                                                           Design, sale and
Jianke Hong                                                installation of
                    Hong Kong          Hong Kong                                                           100.00% Incorporation
Kong                                                       building curtain
                                                           wall

                                                           Inspection,
                                                           technical service
                                                           and consultation
Yunzhu              Shenzhen           Shenzhen            of building safety                              100.00% Purchase
                                                           and building
                                                           energy saving
                                                           system

Note to the difference between shareholdings in subsidiaries and percentage of votes:
None
Basis for holding half or less votes but controlling invested entities, and holding half or more votes but not controlling invested
entities:
None
Basis for control of structural entities incorporated in the consolidation scope:
None
Basis for recognizing a company as an agent or consigner:
None
Others:
None




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(2) Major non wholly-owned subsidiaries

                                                                                                                                                                In RMB

                                                                                                           Dividend to be                  Interest balance of
                                 Shareholding of minority Profit and loss attributed
           Company                                                                                      distributed to minority        minority shareholders in
                                       shareholders                to minority shareholders
                                                                                                             shareholders                the end of the period

Zhongrong Litai                                         45.00%                          5,020.74                                                      48,407,976.32

Fangda Zhichuang                                        16.90%                     3,689,439.35                        3,989,716.00                   46,308,033.52

Note to the difference between shareholdings of minority shareholders in subsidiaries and percentage of votes:
None
Others:
None


(3) Financial highlights of major non wholly owned subsidiaries

                                                                                                                                                                In RMB

                                      Closing balance                                                                   Opening balance
Compan                  Non-curr                                Non-curr                                Non-curr                                Non-curr
             Current                  Total of Current                          Total       Current                    Total of     Current                     Total
     y                     ent                                     ent                                     ent                                     ent
              asset                   assets    liabilities                   liabilities     asset                     assets    liabilities                 liabilities
                          assets                                liabilities                               assets                                liabilities

Zhongro 206,568, 186,691. 206,755, 99,011,7 170,604. 99,182,3 205,837, 30,024.8 205,867, 98,305,2                                                             98,305,2
ng Litai      978.96             75    670.71           85.19            81       90.00       361.25               8     386.13       62.61                       62.61

Fangda
             545,615, 82,132,2 627,747, 345,785, 7,950,45 353,735, 757,453, 62,283,6 819,737, 519,869, 6,562,28 526,432,
Zhichuan
              396.10        91.49      687.59          202.83        2.10        654.93       607.34        69.54        276.88      993.38          6.06       279.44
g

                                                                                                                                                                In RMB

                            Amount occurred in the current period                                                Occurred in previous period

                                                                              Business                                                                   Business
    Company                                            Total of misc.                                                               Total of misc.
                  Turnover            Net profit                              operation         Turnover           Net profit                            operation
                                                          incomes                                                                     incomes
                                                                              cash flows                                                                 cash flows

Zhongrong
                      201,032.08        11,157.19          11,157.19            16,306.16       229,334.85             -70,059.04      -70,059.04         -11,053.19
Litai

Fangda           267,687,038. 48,286,952.2 47,707,035.2 -122,774,779.
Zhichuang                     55                   7                  2                  41


2. Change in the ownership share of the subsidiary and control of the transaction of the subsidiary

(1) Description of changes in owner's equity shares of subsidiaries

In order to strengthen the strategic layout of the Company's rail transit PSD system industry and further optimize the equity structure


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of the holding subsidiary Zhichuang Technology, according to the Company's strategic plan, the Company transferred 10.9375% of
the equity of Zhichuang Technology, with a transfer amount of RMB175 million yuan. The above equity transfer related procedures
have been completed in the reporting period. For details of the disclosure of relevant matters, please refer to the Announcement on
Transfer of Partial Equity of Holding Subsidiaries released on cninfo.com on May 17, 2021.


(2) Impact of transaction on minority shareholders' equity and owner's equity attributable to parent
company

                                                                                                                              In RMB

                               Item                                                             Amount

Purchase cost/disposal consideration

--Cash                                                                                                               175,000,000.00

Total purchase cost/disposal consideration                                                                           175,000,000.00

Less: share of net assets of subsidiaries calculated according to
                                                                                                                      29,154,008.06
the proportion of equity acquired / disposed

Difference                                                                                                           145,845,991.94

Including: adjustment of capital reserve                                                                             145,845,991.94

Other note
None


3. Interests in joint ventures or associates

(1) Financial summary of insignificant joint ventures and associates

                                                                                                                              In RMB

                                                Closing balance/amount occurred in this      Opening balance/amount occurred in
                                                                    period                             previous period

Associate:                                                            --                                      --

Total book value of investment                                               55,449,484.30                            55,902,377.95

Total shareholding                                                    --                                      --

Net profit                                                                     -452,893.65                               -375,202.09

--Total of misc. incomes                                                       -452,893.65                               -375,202.09

Other note
None


X. Risks of Financial Tools

       The risks associated with the financial instruments of the Company arise from the various financial assets
and liabilities recognized by the Company in the course of its operations, including credit risks, liquidity
risks and market risks.


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        The management objectives and policies of various risks related to financial instruments are governed by
the management of the Company. The operating management is responsible for daily risk management through
functional departments (for example, the Company's credit management department reviews the Company's credit
sales on a case-by-case basis). The internal audit department of the Company conducts daily supervision of the
implementation of the Company's risk management policies and procedures, and reports relevant findings to the
Company's audit committee in a timely manner.

        The overall goal of the Company's risk management is to formulate risk management policies that minimize
the risks associated with various financial instruments without excessively affecting the Company's
competitiveness and resilience.

        1. Credit risk

        Credit risk is caused by the failure of one party of a financial instrument in performing its obligations,
causing the risk of financial loss for the other party. The credit risk of the Company mainly comes from monetary
capital, notes receivable, accounts receivable, other receivables, receivables financing, contract assets, etc.
The credit risk of these financial assets comes from the default of the counterparties, and the maximum risk
exposure is equal to the book amount of these instruments.

        The Company's money and funds are mainly deposited in the commercial banks and other financial institutions.
The Company believes that these commercial banks have higher reputation and asset status and have lower credit
risk.

        For notes receivable, accounts receivable, other receivables, receivables financing and contract assets,
the Company sets relevant policies to control credit risk exposure. The Group set the credit line and term for
debtors according to their financial status, external rating, and possibility of getting third-party guarantee,
credit record and other factors. The Group regularly monitors debtors’ credit record. For those with poor credit
record, the Group will send written payment reminders, shorten or cancel credit term to lower the general credit
risk.

        (1) Significant increases in credit risk

        The credit risk of the financial instrument has not increased significantly since the initial confirmation.
In determining whether the credit risk has increased significantly since the initial recognition, the Company
considers reasonable and evidenced information, including forward-looking information, that can be obtained
without unnecessary additional costs or effort. The Company determines the relative risk of default risk of the
financial instrument by comparing the risk of default of the financial instrument on the balance sheet date with
the risk of default on the initial recognition date to assess the credit risk of the financial instrument from
initial recognition.

        When one or more of the following quantitative and qualitative criteria are triggered, the Company believes
that the credit risk of financial instruments has increased significantly: the quantitative criteria are mainly
the probability of default in the remaining life of the reporting date increased by more than a certain proportion
compared with the initial recognition; the qualitative criteria are the major adverse changes in the operation
or financial situation of the major debtors, the early warning of customer list, etc.

        (2) Definition of assets where credit impairment has occurred

        In order to determine whether or not credit impairment occurs, the standard adopted by our company is consistent with the
credit risk management target for related financial instruments, and quantitative and qualitative indicators are considered.



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      Major financial difficulties have occurred to the issuer or the debtor; Breach of contract by the debtor,
such as payment of interest or default or overdue of principal; (B) The concession that the debtor would not
make under any other circumstances for economic or contractual considerations relating to the financial
difficulties of the debtor; The debtor is likely to be bankrupt or undertake other financial restructuring; The
financial difficulties of the issuer or debtor lead to the disappearance of the active market for the financial
asset; To purchase or generate a financial asset at a substantial discount, which reflects the fact that a credit
loss has occurred.

      Credit impairment in financial assets may be caused by a combination of multiple events, not necessarily
by events that can be identified separately.

      (3) Expected credit loss measurement

      Depending on whether there is a significant increase in credit risk and whether a credit impairment has occurred, the Company
prepares different assets for a 12-month or full expected credit loss. The key parameters of expected credit loss measurement
include default probability, default loss rate and default risk exposure. Taking into account the quantitative analysis
and forward-looking information of historical statistics (such as counterparty ratings, guaranty methods, collateral categories,
repayment methods, etc.), the Company establishes the default probability, default loss rate and default risk exposure model.

      Definition:

      The probability of default refers to the possibility that the debtor will not be able to fulfil its obligation to pay in the next 12
months or throughout the remaining period.

      Breach Loss Rate means the extent of loss expected by the Company for breach risk exposure. Depending on
the type of counterparty, the manner and priority of recourse, and the different collateral, the default loss
rate is also different. The default loss rate is the percentage of the risk exposure loss at the time of the default, calculated on the
basis of the next 12 months or the entire lifetime.

      Exposure to default is the amount payable to the Company at the time of default in the next 12 months or throughout the
remaining life. Prospective information credit risks significantly increased and expected credit losses were
calculated. Through the analysis of historical data, the Company has identified the key economic indexes that
affect the credit risk of each business type and the expected credit loss.

      The largest credit risk facing the Group is the book value of each financial asset on the balance sheet.
The Group makes no guarantee that may cause the Group credit risks.

      Among the Group’ receivables, accounts receivable from top 5 customers account for 31.97% of the total accounts receivable
(beginning of the period: 28.36%); among other receivables, other receivables from top 5 customers account for 68.32% of the total
other receivables (beginning of the period: 69.65%).

     2. Liquidity risk

      Liquidity risk is the risk of capital shortage when the Group needs to pay cash or settled with other financial
assets. The Company is responsible for the cash management of its subsidiaries, including short-term investments
in cash surpluses and loans to meet projected cash requirements. The Company's policy is to regularly monitor
short and long-term liquidity requirements and compliance with borrowing agreements to ensure adequate cash
reserves and readily available securities.

   As of June 30, 2021, the maturity of the Company's financial liabilities is as follows:

   Contract amount: RMB



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                  Item                                            June 30, 2021
                                      Less than 1 year     Within 1-3       Over 3 years          Total
                                                             years
Short-term loans                             117,463.12                                            117,463.12
Notes payable                                 68,429.86                                             68,429.86
Account payable                              108,683.62        2,983.24           1,129.24         112,796.10
Employees' wage payable                        2,687.98                                               2,687.98
Other payables                                10,024.62        1,592.44           4,235.47          15,852.53
Non-current liabilities due in 1              11,949.66                                             11,949.66
year
Other current liabilities                      3,671.36                                               3,671.36
Long-term loans                                               29,116.15         119,300.00         148,416.15
         Total liabilities                   322,910.22       33,691.83         124,664.71         481,266.76



(Continued)

Contract amount: RMB

                                                                 December 31, 2020

                  Item                Less than 1 year      Within 1-3        Over 3 years           Total
                                                              years

Short-term loans                              104,825.03                                                  104,825.03

Notes payable                                  86,622.45                                                   86,622.45

Account payable                               124,909.38         3,271.34              104.08             128,284.80

Employees' wage payable                         6,089.42                                                    6,089.42

Other payables                                  9,741.88         3,965.54            1,656.09              15,363.51

Non-current liabilities due in 1               10,335.98                                                   10,335.98
year

Other current liabilities                      10,768.84                                                   10,768.84

Long-term loans                                                 24,941.15           85,000.00             109,941.15

         Total liabilities                    353,292.98        32,178.03           86,760.17             472,231.18




       3. Market risks and measures

       (1) Credit risks

       The exchange rate risk of the Company mainly comes from the assets and liabilities of the Company and its
subsidiaries in foreign currency not denominated in its functional currency. Except for the use of Hong Kong
dollars, United States dollars, Australian dollars, Vietnamese dong, euro, Indian rupees or Singapore currencies

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by its subsidiaries established in and outside the Hong Kong Special Administrative Region, other major businesses
of the Company shall be denominated in Renminbi.

        As of June 30, 2021, the Company's ending foreign currency financial assets and foreign currency financial liabilities are listed
in Note 7, 66 foreign currency monetary item description.

        The Company pays close attention to the impact of exchange rate changes on the Company's exchange rate
risk. The Company continuously monitors the scale of foreign currency transactions and foreign currency assets
and liabilities to minimize foreign exchange risks. To this end, the Company may avoid foreign exchange risks
by signing forward foreign exchange contracts or currency swap contracts.

        (2) Interest risk

        The Group's interest rate risk mainly arises from long-term interest-bearing debts such as long-term bank
loans. Financial liabilities with floating interest rate cause cash flow interest rate risk for the Group.
Financial liabilities with fixed interest rate cause fair value interest rate risk for the Group. The Group decides
the proportion between fixed interest rate and floating interest rate according to the market environment and
regularly reviews and monitors the combination of fixed and floating interest rate instruments.

        The Group Finance Department of the Company continuously monitors the Group interest rate level. The rising
interest rate will increase the cost of the new interest-bearing debt and the interest expenditure on
interest-bearing debt which has not yet been paid by the Company at the floating rate, and will have a significant
adverse effect on the Company's financial performance. Management will make adjustments in time according to
the latest market conditions.

        As of June 30, 2021, the current floating rate loan is RMB 2.077 billion. If the loan interest rate calculated by floating rate
increases or decreases by 50 basis points, the net profit of the Company will decrease or increase by RMB 7.7888 million (December
31, 2020: RMB 7.3875 million) while other risk variables remain unchanged.




XI. Fair Value

1. Closing fair value of assets and liabilities measured at fair value

                                                                                                                                In RMB

                                                                         Closing fair value
             Item
                                First level fair value   Second level fair value     Third level fair value             Total

1. Continuous fair value
                                          --                       --                          --                        --
measurement

Derivative financial assets               5,096,490.27                                                                    5,096,490.27

Investment in other equity
                                                                                               17,398,629.00             17,398,629.00
tools

Leased building                                                 5,635,833,581.39                                      5,635,833,581.39

Financial assets measured
at fair value with changes                                                                    132,493,708.09           132,493,708.09
included in current profits


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and losses -- investment in
financial products

Receivable financing                                                              23,798,104.10            23,798,104.10

Other non-current
                                                                                   5,198,015.90             5,198,015.90
financial assets

Total assets measured at
                                 5,096,490.27       5,635,833,581.39             178,888,457.09         5,819,818,528.75
fair value continuously

2. Discontinuous fair
                                 --                    --                         --                       --
value measurement


2. Recognition basis of market value of continuous and discontinuous items measured at first level fair
value

The Group determines the fair value using quotation in an active market for financial instruments traded in an
active market;


3. Valuation technique and qualitative and quantitative information for key parameters of continuous and
discontinuous second level fair value items

For investment real estate, the Company adopts valuation technology to determine its fair value. The valuation
techniques adopted are mainly the market comparison method and the income method, and the rent and resale model.
The input value of valuation technology mainly includes comparable market unit price, market rent, vacancy rate,
growth rate, rate of return, etc.


4. Valuation technique and qualitative and quantitative information for key parameters of continuous and
discontinuous third level fair value items

If there is no active market, the Company uses evaluation techniques to determine the fair value. The valuation
models are mainly cash flow discount model and market comparable company model. The input value of valuation
technology mainly includes risk-free interest rate, benchmark interest rate, exchange rate, credit point
difference, liquidity premium, lack of liquidity discount, etc.


5. Switch between different levels, switch reason and switching time policy

The Company takes the occurrence date of the events leading to the transition between levels as the time point
to confirm the transition between levels. In the period, there is no switch in the financial assets measured
at fair value between the first and second level or transfer in or out of the third level.


6. Fair value of financial assets and liabilities not measured at fair value

Financial assets and liabilities measured at amortized cost include: monetary capital, bills receivable, accounts
receivable, other receivables, short-term borrowings, notes payable, employee compensation payable, accounts
payables, other payables, and long-term payables.



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XII. Related Parties and Transactions

1. Parent of the Company


                                                                                                Share of the parent       Voting power of the
        Parent            Registered address          Business           Registered capital
                                                                                                co. in the Company         parent company

Shenzhen Banglin
Technologies
                         Shenzhen                Industrial investment RMB30 million                          11.11%                  11.11%
Development Co.,
Ltd.

Shengjiu Investment
                         Hong Kong               Industrial investment HKD10,000                                  9.89%                9.89%
Ltd.

Particulars about the parent of the Company

       ①All of the investors of Shenzhen Banglin Technology Development Co., Ltd., the holding shareholder of the Company, are
natural persons. Among them, Chairman Xiong Jianming is holding 85% shares, and Mr. Xiong Xi – son of Mr. Xiong Jianming,
is holding 15% of the shares.

       ② Among the top 10 shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu Investment Co., Ltd.
are acting in concert.


The final controller of the Company is Xiong Jianming.


2. Subsidiaries of the Company

For details of subsidiaries of the enterprise, please refer to Note IX, rights and interests in other entities.


3. Joint ventures and associates

See Note for details of significant joint ventures and associates of the Company.
Information about other joint ventures or associates with related transactions in this period or with balance generated by related
transactions in previous period:

                      Joint venture or associate                                         Relationship with the Company

Shenzhen Ganshang Joint Investment Co., Ltd. (Shenzhen
                                                                       Associate
Ganshang)


4. Other associates


                         Other related parties                                           Relationship with the Company

Jiangxi Business Innovative Property Joint Stock (Jiangxi
                                                                       Associate
Business Inovation)

Shenzhen Qijian Technology Co., Ltd. (Qijian Technology)               Common actual controller

Shenzhen Mingjiu Investment Co., Ltd                                   Common actual controller


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Shenzhen Fangda Property Development Co., Ltd. (hereinafter
                                                                   Controlled subsidiaries
Fangda Property Development)

Shenyang Fangda Semi-conductor Lighting Co., Ltd. (hereinafter
                                                                   Subsidiary in liquidation
Shenyang Fangda)

Shenzhen Woke Semi-conductor Lighting Co., Ltd. (hereinafter
                                                                   Subsidiary in liquidation
Shenzhen Woke)

Gong Qing Cheng Shi Li He Investment Management                    Affiliated relationship with Shenzhen Banglin Technology
Partnership Enterprise (limited partner)                           Development Co., Ltd.

Director, manager and secretary of the Board                       Key management


5. Related transactions

(1) Related transactions for purchase and sale of goods, provision and acceptance of services

Sales of goods and services
                                                                                                                                 In RMB

                                                                     Amount occurred in the
        Affiliated party               Related transaction                                               Occurred in previous period
                                                                           current period

                                 Property service and sales of
Qijian Technology                                                                       59,376.04                             25,261.82
                                 goods


(2) Related leasing

The Company is the leasor:
                                                                                                                                 In RMB

      Name of the leasee            Category of asset for lease    Rental recognized in the period Rental recognized in the period

Qijian Technology                Houses & buildings                                         482,580.65                       207,366.00


(3) Related guarantees

The Company is the guarantor:
                                                                                                                           In RMB10,000

    Beneficiary party         Amount guaranteed               Start date                    Due date                Completed or not

                                                       Wednesday, July 31,       Wednesday, July 10,
Fangda Zhijian                              8,000.00                                                           No
                                                       2019                      2024

Jiangxi Property                                       Wednesday, June 19,
                                           20,000.00                             Friday, June 23, 2023         No
Development                                            2019

Fangda Jianke                              50,000.00 Tuesday, July 14, 2020      Thursday, July 8, 2021        No

                                                       Tuesday, September 22,    Tuesday, September 21,
Fangda Jianke                              25,000.00                                                           No
                                                       2020                      2021


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Fangda Jianke                             15,000.00 Friday, April 10, 2020      Friday, March 18, 2022      No

                                                                                Wednesday, April 14,
Fangda Jianke                             30,000.00 Friday, June 12, 2020                                   Yes
                                                                                2021

Fangda Zhichuang                          10,000.00 Friday, April 10, 2020      Friday, March 18, 2022      No

                                                                                Wednesday, June 23,
Fangda Zhichuang                            3,000.00 Monday, June 29, 2020                                  Yes
                                                                                2021

                                                      Wednesday, March 17,      Thursday, February 17,
Fangda Jianke                             60,000.00                                                         No
                                                      2021                      2022

                                                      Thursday, September 3,    Thursday, August 19,
Fangda Jianke                             40,000.00                                                         No
                                                      2020                      2021

                                                                                Wednesday, June 30,
Fangda Zhichuang                          40,000.00 Tuesday, July 28, 2020                                  Yes
                                                                                2021

                                                      Thursday, September 3,    Thursday, August 19,
Fangda Zhichuang                          10,000.00                                                         No
                                                      2020                      2021

                                                                                Thursday, February 17,
Fangda Zhichuang                          20,000.00 Monday, March 29, 2021                                  No
                                                                                2022

Fangda New Material                         6,500.00 Tuesday, July 14, 2020     Tuesday, July 13, 2021      No

Fangda New Material                         8,000.00 Saturday, May 23, 2020     Saturday, May 22, 2021      Yes

                                                      Tuesday, February 25,     Sunday, February 24,
Fangda Property                          135,000.00                                                         No
                                                      2020                      2030

                                                                                Saturday, February 13,
Kechuangyuan                                1,000.00 Sunday, August 23, 2020                                Yes
                                                                                2021

                                                                                For details, please refer
Fangda Jianke and                                     Wednesday, December       to the following
                                          14,000.00                                                         No
Fangda Zhichuang                                      18, 2019                  description of related
                                                                                party guarantee (2)

Fangda Jianke                             20,000.00 Friday, March 6, 2020       Friday, March 5, 2021       Yes

Note to related guarantees
1. The above-mentioned guarantees are all associated guarantees within interested entities of the Group.
2. HSBC has a total credit of RMB 90 million to the Company, Fangda Jianke and Fangda Zhichuang and has not yet agreed on the
credit expiration date. HSBC regularly evaluates the credit status. The restriction on the use of the credit is as follows:
The Company can use non-financial bank guarantees of up to 90 million yuan to grant credit;
Fangda Jianke has non-committed combined revolving credits of not more than RMB90 million including revolving loans of up to
RMB90 million, non-financial bank guarantees of up to RMB90 million and bank acceptances of up to RMB90 million.
Fangda Jianke has non-committed combined revolving credits of not more than RMB140 million including revolving loans of up to
RMB50 million, non-financial bank guarantees of up to RMB140 million and bank acceptances of up to RMB140 million.




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(4) Remuneration of key management

                                                                                                                                       In RMB

                      Item                           Amount occurred in the current period               Occurred in previous period

Directors, supervisors and senior
                                                                                     4,157,864.33                                 3,921,960.54
management


(5) Other related transactions

     The subsidiaries Fangda Jianke and Hongjun Investment acquired 100% equity of Yunzhu in cash. Yunzhu is a company
controlled by Mr. Xiong Jianming, the actual controller of the Company. The total transaction amount is RMB 125,388,100. All
relevant transaction procedures have been completed during the reporting period. Fangda Jianke and Hongjun Investment hold 99%
and 1% shares of Yunzhu respectively.




6. Receivable and payables due with related parties

(1) Receivable interest

                                                                                                                                       In RMB

                                                                   Closing balance                              Opening balance
        Item                 Affiliated party        Remaining book                                 Remaining book
                                                                           Bad debt provision                              Bad debt provision
                                                          value                                          value

Account receivable      Qijian Technology                      3,789.89                    37.90               44,268.81               442.69

Other receivables       Shenyang Fangda                       42,877.00                42,877.00               42,877.00            42,877.00

Other receivables       Shenzhen Woke                        867,442.94               867,442.94           867,442.94              867,442.94

                        Ganshang Joint
Other receivables                                          3,791,089.25                56,487.23          3,791,089.25              56,487.23
                        Investment

                        Shenzhen Yikang
Other receivables                                        70,062,675.83               1,043,933.87        70,000,000.00            1,043,000.00
                        Real Estate Co. Ltd.


(2) Receivable interest

                                                                                                                                       In RMB

               Item                             Affiliated party           Closing balance of book value Opening balance of book value

                                     Shenzhen Yikang Real Estate
Other payables                                                                               25,062,852.92                      24,912,830.32
                                     Co. Ltd.

Other payables                       Qijian Technology                                               400.00                            400.00

Other payables                       Ganshang Joint Investment                                      3,355.36                         3,355.36




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XIII. Contingent events

1. Major commitments

Major commitments that exist on the balance sheet day

      On November 6, 2017, Fangda Real Estate Co., Ltd., a subsidiary of the Company, and Bangshen Electronics (Shenzhen) Co.,
Ltd. signed the “Joint Development Agreement on Fangda Bangshen Industrial Park (Temporary Name) Urban Renewal Project”,
and the two parties agreed to develop cooperatively. In order to develop urban renewing projects such as a “renovation project”,
Fangda Real Estate provided Party A with property compensation through renovating and renovating the property allocation terms
agreed upon by both parties, and obtained independent development rights of the project. As of June 30, 2021, Fangda Real Estate
Co., Ltd. had paid a security deposit of RMB 20 million.

      (2) In July 2018 ,the Company's subsidiary Fangda Real Estate Co. Ltd. (Party A) signed a contract with Shenzhen Yikang
Real Estate Co. Ltd. (Party B1) and Shenzhen Qianhai Zhongzheng Dingfeng No. 6 Investment Enterprise (Limited Partnership)
(Party B2), "Shenzhen Henggang Dakang Village Project Cooperation Agreement". Party B agrees to transfer the entire equity of the
project company it holds and the entire development interest of the project to Party A. Party A shall pay Party B a total of RMB600
million for the cooperation price. As of June 30, 2021, Fangda Real Estate has paid RMB 50 million yuan of deposit and RMB
61.9372 million yuan of equity transfer to Party B; Pay the service fee, deposit, preliminary willingness collection fee and the down
payment of the old chicken farm on behalf of the project company, totaling about RMB90 million yuan.

      As of June 30, 2021, the Group did not have other commitments that should be disclosed.


2. Contingencies

(1) Significant contingencies on the balance sheet date

      (1) Contingent liabilities formed by material lawsuit or arbitration, and their influences on the financial position

      ① In November 2018, Fangda Jianke a subsidiary of the Group sued Fujian Huapu Real Estate Development Co. Ltd. for a
payment of RMB 13810243.67 and its overdue interest of RMB 373,380.16 totaling RMB 14,183,623.83 to the Taijiang District
People's Court of Fuzhou City. The case has not been decided. On 10 May 2019, the court ruled against the prosecution; On 16 May
2019, Fang Da Jianke filed an appeal; On 26 August 2019, the court of second instance ordered the court of first instance to revoke
the first instance decision; On 8 October 2019, it was sent back to the court of first instance, case number: (2019) Min 0103 Republic
of China 4282. In April 2020, Huapu Company filed a counterclaim application to the court, requesting Fangda Jianke Company to
pay a total of RMB12,746,000.00 for the construction period and quality. The first instance has not yet been decided. Fujian Huapu
Real Estate Development Co., Ltd. has been applied for bankruptcy liquidation by other creditors, and Fangda
Jianke has declared its creditor's rights to the manager. As of the date of this report, the case is still under
trial.

      ② On June 19, 2019, Langfang Aomei Jiye Real Estate Development Co., Ltd. filed a lawsuit against Fangda Jianke in the
People's Court of Langfang Development Zone, demanding compensation of RMB19,721,315.00, and filed an application for
appraisal of quality, repair cost and uncompleted project cost on December 26, 2019; Fangda Jianke filed a counterclaim on
September 11, 2019, demanding payment of RMB13,920,000.70, and put forward the application for completed project cost
appraisal on November 22, 2019. As of the date of this report, the case is still in the process of first instance.

      ③ As of December 31, 2021, due to the expiration of the implementation rules of the "Shenzhen Municipal People's
Government on the Administration of the Transfer of Industrial Buildings (Trial)" and the "Notice of the Municipal Planning and


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Land Resources Commission on Matters Related to the Management of Industrial Building Transfers" and other reasons, some
owners of Fangda Town failed to handle the real estate ownership certificate as scheduled and could not handle the certificate until
the implementation of the new policy in February 2020. Both parties had disputes over the failure to handle the certificate. As a result
of the above-mentioned litigation, the owners proposed property preservation, and the monetary fund of RMB35,956,145.59 of
Fangda Real Estate was frozen. As of June 30, 2021, Fangda Real Estate has accrued estimated liabilities of RMB25,683,696.08 yuan
according to the most likely litigation results.

       (2) Pending major lawsuits

       On September 6, 2017, Chenghua District People's Court of Chengdu Municipality sentenced Sichuan Chuta Hengyuan
Industrial Co., Ltd. to pay construction money to Fangda Jianke within 10 days from the date of the verdict 川0108民初1828号
RMB10,242,182.99. As of the date of this report, Fangda Jianke has applied for execution and has not received
the relevant payment.

       On September 10, 2018, the People's Court of Lixia District of Jinan City sentenced Shandong Zhonghong Real Estate Co. Ltd.
to the Company for payment of RMB5960429.45 within 10 days from the date of the effective date of the (2018) Lu 0102 Minchu
5367 civil judgment. Shandong Zhonghong Real Estate Co., Ltd. has been applied for bankruptcy liquidation and its
assets have been successfully auctioned. Fangda Construction Technology Co., Ltd. has declared its creditor's
rights and enjoys the priority to be paid for the project price. The manager is formulating the distribution
details. As of the date of this report, no relevant payment has been received.

       On November 15, 2019, the Chengdu Chenghua District People’s Court ruled (2019) Chuan 0108 Min Chu No. 428 that
Sichuan Chuanta Hengyuan Industrial Co., Ltd. shall pay interest to the Company within ten days from the effective date of the
judgment (subject to RMB6,013, 841.233 as the base, from May 29, 2015 to the day when the payment is paid; with RMB841,876.
3235 as the base, from May 28, 2015 to the day when the payment is paid. Based on RMB841, 876.3235, from May 28, 2016 to the
day when the payment is paid). The Company enjoys the priority of compensation for the discounted or auctioned price of Building
C of the Chuan Tower supporting project (Film and Television Cultural Square) project within the scope of RMB 7,697,593.88. As of
the date of this report, Fangda Jianke has applied for execution and has not received the relevant payment.

       (3) Contingent liabilities formed by providing of guarantee to other companies’ debts and their influences on financial
situation

     As of June 30, 2021, the Company provided guarantees for the following unit loans:

 Name of guaranteed                  Guarantee                 Amount                       Term
            entity                                          (RMB10,000)
Fangda Zhijian             Guarantee and mortgage                     123.78      2019/7/31 to 2024/7/10
                           guarantee
Fangda Zhijian             Guarantee and mortgage                     586.24      2019/8/27 to 2024/7/10
                           guarantee
Fangda Zhijian             Guarantee and mortgage                     211.98      2019/9/27 to 2024/7/10
                           guarantee
Fangda Zhijian             Guarantee and mortgage                     892.92     2019/11/18 to 2024/7/10
                           guarantee
Fangda Zhijian             Guarantee and mortgage                     837.41     2019/12/20 to 2024/7/10
                           guarantee
Fangda Zhijian             Guarantee and mortgage                     843.58     2020/01/15 to 2024/07/10
                           guarantee


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Fangda Property           Guarantee, pledge and                       625.00       2019/9/12 to 2023/7/22
                          mortgage guarantee
Fangda Property           Guarantee, pledge and                     3,000.00       2019/9/26 to 2023/7/22
                          mortgage guarantee
Fangda Property           Guarantee, pledge and                     2,000.00       2019/9/29 to 2023/7/22
                          mortgage guarantee
Fangda Property           Guarantee, pledge and                     5,000.00      2019/10/31 to 2023/7/22
                          mortgage guarantee
Fangda Property           Guarantee, pledge and                     4,021.70       020/03/9 to 2023/07/22
                          mortgage guarantee
Fangda Property           Guarantee, pledge and                    96,195.65     2020/03/13 to 2030/03/12
                          mortgage guarantee
Fangda Property           Guarantee and mortgage                   46,960.97     2021/03/18 to 2031/03/18
                          guarantee
Kechuangyuan              Guarantee                                 1,001.21     2020/08/23 to 2021/02/13
Total                                                             162,300.44

Note 1: Contingent liabilities caused by guarantees provided for other entities are all related guarantees between interested entities in
the Group.

Notes 2: The Group’s property business provides periodic mortgage guarantee for property purchasers. As of June 30, 2021, the
Company assumed the above-mentioned phased guarantee amount of RMB157,862,600.


(2) Significant contingent events that do not need to be disclosed should be explained

As of June 30, 2021, the Company has no other important contingencies to be disclosed.


3. Others

        As of June 30, 2021:
           Currency                 Guarantee balance               Deposit (RMB)              Credit line used (RMB)
                                  (original currency)
RMB (CNY)                                      719,509,537.4                   2,791,133.69                  716,718,403.71

Indian rupee (INR)                             87,299,635.00                               -                    7,590,354.06

HK $(HKD)                                      15,349,982.00                               -                  12,772,413.02

United States dollars (USD)                      9,102,345.5                   1,259,418.27                   57,542,643.89

Euro (EUR)                                        150,000.00                               -                    1,152,930.00

             Total                                                             4,050,551.96                  795,776,744.69




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XIV. Post-balance-sheet events

1. Profit distribution

                                                                                                              In RMB

Profit or dividend to be distributed                                                                            0.00

Profit or dividend approved to be distributed                                                                   0.00


2. Notes to other issues in post balance sheet period

      The Company has no other issues in post balance sheet period that need to be disclosed on Monday, August
16, 2021 (report date approved by the Board of Directors).


XV. Other material events

1. Suspension of operations

There is no net profit from discontinued operations in the current period.


2. Segment information

(1) Recognition basis and accounting policy for segment report

      The Group divides its businesses into five reporting segments. The reporting segments are determined based
on financial information required by routine internal management. The Group’s management regularly review the
operating results of the reporting segments to determine resource distribution and evaluate their performance.

      The reporting segments are:

      (1) Curtain wall segment, production and sales of curtain wall materials, construction curtain wall design,
production and installation;

      (2) Rail transport segment: assembly and processing of metro screen doors;

      (3) Real estate segment: development and operating of real estate on land of which land use right is legally
obtained by the Company; property management;

      (4) New energy segment: photovoltaic power generation, photovoltaic power plant sales, photovoltaic
equipment R & D, installation, and sales, and photovoltaic power plant engineering design and installation

      (5) Others

      The segment report information is disclosed based on the accounting policies and measurement standards
used by the segments when reporting to the management. The policies and standards should be consistent with those
used in preparing the financial statement.




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(2) Financial information

                                                                                                                                  In RMB

                                                                                                         Offset between
       Item          Curtain wall    Rail transport    Real estate      New energy         Others                              Total
                                                                                                           segments

                    1,099,031,952.                                                                                         1,568,778,834.
Turnover                             267,687,038.55 192,144,565.45       8,712,992.49 12,068,999.58 10,866,714.07
                                98                                                                                                      98

Including:
external            1,097,171,007.                                                                                         1,568,778,834.
                                     267,687,038.55 188,235,871.36       8,323,350.81    7,361,567.19
transaction                     07                                                                                                      98
income

Inter-segment
transaction           1,860,945.92                     3,908,694.09       389,641.68     4,707,432.38 10,866,714.07                    0.00
income

Including:
                    1,086,846,566.                                                                                         1,500,250,618.
major business                       267,675,591.44 139,197,248.64       8,712,992.49                      2,181,780.48
                                38                                                                                                      47
turnover

                                                                                                                           1,208,641,803.
Operating cost 940,911,538.40 190,007,785.06 76,033,488.56               3,849,674.63       89,904.13      2,250,587.60
                                                                                                                                        18

Including:
                                                                                                                           1,201,118,172.
major business 935,765,330.92 190,007,785.06 74,370,131.39               3,849,674.63                      2,874,749.43
                                                                                                                                        57
cost

                                                                                                         -241,549,074.7
Operation cost      -35,998,064.18 -19,651,831.82 78,165,036.90            811,034.05 -36,141,450.10                       228,733,799.60
                                                                                                                      5

Operating
                    194,118,478.76 97,331,085.31 37,946,039.99           4,052,283.81 48,120,545.55 250,165,201.22 131,403,232.20
profit/(loss)

                    4,720,277,495.                    6,658,684,740.                    3,424,589,311. 4,258,652,240. 11,721,210,311
Total assets                         627,747,687.59                    548,563,316.08
                                83                               30                                 92                66                .06

                    3,192,837,798.                    4,087,612,847.                    1,046,618,617. 3,005,661,573. 6,122,761,370.
Total liabilities                    353,735,654.93                    447,618,025.92
                                84                               85                                 02                91                65


(3) Others

Since more than 90% of the Group’ revenue comes from Chinese customer and 90% of the Group’ assets are in China, no detailed
regional information is needed.




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XVI. Notes to Financial Statements of the Parent

1. Account receivable

(1) Account receivable disclosed by categories

                                                                                                                                     In RMB

                                          Closing balance                                            Opening balance

                         Remaining book                                           Remaining book
                                               Bad debt provision                                          Bad debt provision
         Type                 value                                   Book              value
                                                                                                                                Book value
                                   Proportio            Provision     value                  Proportio              Provision
                        Amount                 Amount                             Amount                   Amount
                                      n                     rate                                 n                     rate

Including:

Account receivable
for which bad debt      897,991.                                    888,385.4 892,363.4
                                   100.00% 9,605.86         1.07%                            100.00% 6,514.35          0.73% 885,849.08
provision is made by          34                                              8          3
group

Including:

Combination 3:
                        897,991.                                    888,385.4 892,363.4
Other business                     100.00% 9,605.86         1.07%                            100.00% 6,514.35          0.73% 885,849.08
                              34                                              8          3
models

                        897,991.                                    888,385.4 892,363.4
Total                              100.00% 9,605.86         1.07%                            100.00% 6,514.35          0.73% 885,849.08
                              34                                              8          3

Provision for bad debts by combination:
                                                                                                                                     In RMB

                                                                               Closing balance
             Name
                                       Remaining book value                   Bad debt provision                    Provision rate

Combination 3: Other business
                                                        897,991.34                              9,605.86                             1.07%
models

Total                                                   897,991.34                              9,605.86                  --

Provision for bad debts by combination:
                                                                                                                                     In RMB

                                                                               Closing balance
             Name
                                       Remaining book value                   Bad debt provision                    Provision rate

Less than 1 year                                        675,325.34                              4,929.87                             0.73%

1-2 years                                               222,666.00                              4,675.99                             2.10%

Total                                                   897,991.34                              9,605.86                  --

If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, please



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refer to the disclosure of other receivables to disclose information about bad debts:
□ Applicable √ Inapplicable
Account age
                                                                                                                                  In RMB

                                 Age                                                            Closing balance

Within 1 year (inclusive)                                                                                                    675,325.34

1-2 years                                                                                                                    222,666.00

Total                                                                                                                        897,991.34


(2) Bad debt provision made, returned or recovered in the period

Bad debt provision made in the period:
                                                                                                                                  In RMB

                                                                     Change in the period
        Type            Opening balance                      Written-back or                                            Closing balance
                                             Provision                             Canceled               Others
                                                               recovered

Combination 3:
Other business                 6,514.35           3,091.51                                                                      9,605.86
models

Total                          6,514.35           3,091.51                                                                      9,605.86


(3) Balance of top 5 accounts receivable at the end of the period

                                                                                                                                  In RMB

                                       Closing balance of accounts                                       Balance of bad debt provision at
               Entity                                                          Percentage (%)
                                               receivable                                                     the end of the period

Top five summary                                         856,402.31                             95.37%                          9,302.26

Total                                                    856,402.31                             95.37%


2. Other receivables

                                                                                                                                  In RMB

                        Item                                 Closing balance                               Opening balance

Other receivables                                                        1,624,397,140.22                              1,156,802,204.91

Total                                                                    1,624,397,140.22                              1,156,802,204.91




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(1) Other receivables

1) Other receivables are disclosed by nature

                                                                                                                                   In RMB

                  By nature                            Closing balance of book value                  Opening balance of book value

Deposit                                                                              150,699.54                               150,699.54

Debt by Luo Huichi                                                             12,992,291.48                               12,992,291.48

Others                                                                               985,404.46                               975,476.54

Accounts between related parties within
                                                                             1,624,173,104.78                           1,156,587,949.46
the scope of consolidation

Total                                                                        1,638,301,500.26                           1,170,706,417.02


2) Method of bad debt provision

                                                                                                                                   In RMB

                                   First stage                Second stage                    Third stage

                                Expected credit        Expected credit loss for the Expected credit loss for the
   Bad debt provision                                                                                                      Total
                              losses in the next 12     entire duration (no credit       entire duration (credit
                                    months                    impairment)               impairment has occurred)

Balance on Friday,
                                          3,240.69                                                  13,900,971.42          13,904,212.11
January 1, 2021

Balance on Friday,
January 1, 2021 in the                 ——                       ——                            ——                     ——
current period

Provision                                     147.93                                                                               147.93

Balance on Wednesday,
                                          3,388.62                                                  13,900,971.42          13,904,360.04
June 30, 2021

Changes in book balances with significant changes in the current period
□ Applicable √ Inapplicable
Account age
                                                                                                                                   In RMB

                                 Age                                                              Closing balance

Within 1 year (inclusive)                                                                                               1,624,329,829.30

Over 3 years                                                                                                               13,971,670.96

  4-5 years                                                                                                                    42,877.00

  Over 5 years                                                                                                             13,928,793.96

Total                                                                                                                   1,638,301,500.26



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3) Bad debt provision made, returned or recovered in the period

Bad debt provision made in the period:
                                                                                                                                In RMB

                                                                  Change in the period
        Type        Opening balance                        Written-back or                                            Closing balance
                                            Provision                               Canceled           Others
                                                              recovered

Other receivables
and bad debt           13,904,212.11              147.93                                                                13,904,360.04
provision

Total                  13,904,212.11              147.93                                                                13,904,360.04


4) Balance of top 5 other receivables at the end of the period

                                                                                                                                In RMB

                                                                                                                  Balance of bad debt
         Entity             By nature           Closing balance              Age               Percentage (%)     provision at the end
                                                                                                                      of the period

Fangda Property        Associate accounts          868,875,749.45 Less than 1 year                      53.04%                        0.00

Fangda Jianke          Associate accounts          469,824,736.51 Less than 1 year                      28.68%                        0.00

Fangda New Energy      Associate accounts          155,776,232.69 Less than 1 year                       9.51%                        0.00

Fangda Property        Associate accounts           92,589,038.54 Less than 1 year                       5.65%                        0.00

Shihui International   Associate accounts           30,459,793.09 Less than 1 year                       1.86%                        0.00

Total                            --              1,617,525,550.28            --                         98.73%                        0.00


3. Long-term share equity investment

                                                                                                                                In RMB

                                         Closing balance                                           Opening balance
        Item        Remaining book         Impairment                         Remaining book         Impairment
                                                             Book value                                                 Book value
                         value              provision                                value            provision

Investment in
                    1,196,831,253.00                       1,196,831,253.00 1,196,831,253.00                          1,196,831,253.00
subsidiaries

Total               1,196,831,253.00                       1,196,831,253.00 1,196,831,253.00                          1,196,831,253.00


(1) Investment in subsidiaries

                                                                                                                                In RMB

 Invested entity Opening book                               Change (+,-)                               Closing book      Balance of


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                        value                                                                                 value          impairment
                                       Increased        Decreased      Impairment                                          provision at the
                                                                                              Others
                                      investment      investment           provision                                         end of the
                                                                                                                                period

                    491,950,000.0
Fangda Jianke                                                                                             491,950,000.00
                                0

Fangda New
                    74,496,600.00                                                                          74,496,600.00
Material

                    198,000,000.0
Fangda Property                                                                                           198,000,000.00
                                0

Shihui
                        61,653.00                                                                              61,653.00
International

Fangda New
                    99,000,000.00                                                                          99,000,000.00
Energy

Hongjun
Investment          98,000,000.00                                                                          98,000,000.00
Company

Fangda
                    235,323,000.0
Investment                                                                                                235,323,000.00
                                0
Partnership

                    1,196,831,253.                                                                        1,196,831,253.
Total
                                00                                                                                    00


4. Operational revenue and costs

                                                                                                                                    In RMB

                                     Amount occurred in the current period                        Occurred in previous period
             Item
                                       Income                       Cost                        Income                     Cost

Other businesses                        12,068,999.58                      89,904.13              12,719,395.10                 151,219.77

Total                                   12,068,999.58                      89,904.13              12,719,395.10                 151,219.77

Information related to performance obligations:
Information related to performance obligations:
Information related to the transaction price allocated to the remaining performance obligations:
The amount of revenue corresponding to the performance obligations that have been signed, but not yet performed or not yet
performed at the end of the reporting period is 32,364,717.13 yuan, of which 11,865,658.82 yuan is expected to be recognized in
2021, and 16,403,912.49 yuan is expected to be recognized in 2022, 4,095,145.82 yuan is expected to be recognized in 2023 and
beyond.




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5. Investment income

                                                                                                                             In RMB

                       Item                      Amount occurred in the current period         Occurred in previous period

Gains from long-term equity investment
                                                                         33,660,000.00
measured by costs

Investment gain of financial products                                       316,138.71                                338,561.17

Total                                                                    33,976,138.71                                338,561.17


XVII. Supplementary Materials

1. Detailed accidental gain/loss

√ Applicable □ Inapplicable
                                                                                                                             In RMB

                       Item                                    Amount                                    Notes

Gain/loss of non-current assets                                           -2,027,304.03

Subsidies accounted into the current income
account (except the government subsidy
closely related to the enterprise’s business                             3,563,846.25
and based on unified national standard
quota)

Net gain between the beginning and merger
day of subsidiaries generated by merger of                                   17,512.89
companies under common control

Gain/loss from change of fair value of
transactional financial asset and liabilities,
and investment gains from disposal of
transactional and derivative financial assets
                                                                          3,102,080.16
and liabilities and sellable financial assets,
other than valid period value instruments
related to the Company’s common
businesses

Write-back of impairment provision of
receivables and contract assets for which                                14,600,000.00
impairment test is performed individually

Other non-business income and expenditures
                                                                          -2,279,268.05
other than the above

Less: Influenced amount of income tax                                     2,384,080.04

     Influenced amount of minority                                          199,880.80



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shareholders’ equity

Total                                                                    14,392,906.38                       --

Explanation statement should be made for accidental gain/loss items defined and accidental gain/loss items defined as regular
gain/loss items according to the Explanation Announcement of Information Disclosure No. 1 - Non-recurring gain/loss mentioned.
□ Applicable √ Inapplicable


2. Net income on asset ratio and earning per share


                                                                                                 Earning per share
        Profit of the report period   Weighted average net income/asset ratio Basic earnings per share      Diluted Earnings per
                                                                                      (yuan/share)           share (yuan/share)

Net profit attributable to common
                                                                        2.05%                        0.10                       0.10
shareholders of the Company

Net profit attributable to the
common owners of the PLC after
                                                                        1.79%                        0.09                       0.09
deducting of non-recurring
gains/losses


3. Differences in accounting data under domestic and foreign accounting standards

(1) Differences in net profits and assets in financial statements disclosed according to the international and
Chinese account standards

□ Applicable √ Inapplicable


(2) Differences in net profits and assets in financial statements disclosed according to the international and
Chinese account standards

□ Applicable √ Inapplicable


(3) Differences in financial data using domestic and foreign accounting standards, the overseas institution
name should be specified if the difference in data audited by an overseas auditor is adjusted

None




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