Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
China Fangda Group Co., Ltd.
CHINA FANGDA GROUP CO., LTD.
2022 Financial Statements
August 2022
1
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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.
June 30, 2022
In RMB
Item June 30, 2022 January 1, 2022
Current asset:
Monetary capital 1,031,315,109.82 1,287,563,759.32
Settlement provision
Outgoing call loan
Transactional financial assets 32,133,168.82 25,135,241.89
Derivative financial assets 1,768,884.99 1,069,587.62
Notes receivable 157,195,531.26 166,377,880.01
Account receivable 555,641,568.67 556,453,824.20
Receivable financing 19,031,714.87 4,263,500.00
Prepayment 23,250,383.96 23,022,485.03
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance
contracts receivable
Other receivables 179,462,261.72 165,093,406.23
Including: interest
receivable
Dividend receivable
Repurchasing of financial
assets
Inventory 718,612,534.55 733,280,924.98
Contract assets 2,047,054,849.24 1,782,947,673.13
Assets held for sales
Non-current assets due in 1
year
Other current assets 369,087,895.76 264,786,506.29
Total current assets 5,134,553,903.66 5,009,994,788.70
Non-current assets:
Loan and advancement provided
2
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Debt investment
Other debt investment
Long-term receivables
Long-term share equity
55,185,971.99 55,218,946.14
investment
Investment in other equity
14,180,652.65 14,180,652.65
tools
Other non-current financial
7,504,750.83 7,525,408.24
assets
Investment real estate 5,763,260,414.20 5,765,352,393.13
Fixed assets 681,823,427.57 663,414,297.61
Construction in process 2,839,581.23 11,642,444.21
Productive biological assets
Gas & petrol
Use right assets 25,002,936.05 31,440,856.54
Intangible assets 73,780,578.87 75,199,712.83
R&D expense
Goodwill
Long-term amortizable expenses 5,509,790.78 5,388,770.22
Deferred income tax assets 222,694,829.06 214,123,733.00
Other non-current assets 425,168,945.51 407,856,515.39
Total of non-current assets 7,276,951,878.74 7,251,343,729.96
Total of assets 12,411,505,782.40 12,261,338,518.66
Current liabilities
Short-term loans 1,622,891,137.62 1,287,474,398.65
Loans from Central Bank
Call loan received
Transactional financial
liabilities
Derivative financial
1,840,691.89 11,871.20
liabilities
Notes payable 729,693,080.61 849,445,299.09
Account payable 1,297,629,112.02 1,343,123,485.97
Prepayment received 2,850,390.49 1,280,482.93
Contract liabilities 172,157,564.27 180,186,877.15
Selling of repurchased
financial assets
Deposit received and held for
others
Entrusted trading of securities
Entrusted selling of securities
Employees' wage payable 32,750,268.63 69,071,013.95
Taxes payable 64,570,722.30 67,280,647.22
Other payables 114,272,250.22 126,903,098.08
3
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Including: interest payable
Dividend payable
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liabilities due in
81,922,494.73 78,418,557.76
1 year
Other current liabilities 58,546,129.52 48,098,361.77
Total current liabilities 4,179,123,842.30 4,051,294,093.77
Non-current liabilities:
Insurance contract provision
Long-term loans 1,298,500,000.00 1,333,500,000.00
Bond payable
Including: preferred stock
Perpetual bond
Lease liabilities 15,837,405.86 19,152,093.31
Long-term payable 190,640,219.18 183,640,219.18
Long-term employees' wage
payable
Anticipated liabilities 3,052,064.92 6,347,809.40
Deferred earning 9,283,203.02 9,566,525.60
Deferred income tax liabilities 1,063,619,814.66 1,066,631,858.80
Other non-current liabilities
Total of non-current liabilities 2,580,932,707.64 2,618,838,506.29
Total liabilities 6,760,056,549.94 6,670,132,600.06
Owner's equity:
Share capital 1,073,874,227.00 1,073,874,227.00
Other equity tools
Including: preferred stock
Perpetual bond
Capital reserves 11,459,588.40 11,459,588.40
Less: Shares in stock
Other miscellaneous income 34,875,541.51 35,325,871.78
Special reserves
Surplus reserve 79,324,940.43 79,324,940.43
Common risk provisions
Retained profit 4,383,046,821.75 4,324,055,259.33
Total of owner's equity belong to
5,582,581,119.09 5,524,039,886.94
the parent company
Minor shareholders' equity 68,868,113.37 67,166,031.66
Total of owners' equity 5,651,449,232.46 5,591,205,918.60
Total of liabilities and owner's
12,411,505,782.40 12,261,338,518.66
interest
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua
2. Balance Sheet of the Parent Company
In RMB
4
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Item June 30, 2022 January 1, 2022
Current asset:
Monetary capital 162,952,516.84 111,848,536.84
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 790,774.65 585,936.30
Receivable financing
Prepayment 101,866.62 212,807.30
Other receivables 1,821,626,998.78 1,276,731,665.95
Including: interest
receivable
Dividend receivable
Inventory
Contract assets
Assets held for sales
Non-current assets due in 1
year
Other current assets 999,205.42 1,460,846.55
Total current assets 1,986,471,362.31 1,390,839,792.94
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 equity
14,180,652.65 14,180,652.65
tools
Other non-current financial
30,000,001.00 30,000,001.00
assets
Investment real estate 329,471,982.00 329,471,982.00
Fixed assets 69,846,546.46 71,830,252.61
Construction in process
Productive biological assets
Gas & petrol
Use right assets 13,910,463.05 17,224,771.47
Intangible assets 1,136,656.32 1,219,737.85
R&D expense
Goodwill
Long-term amortizable expenses 89,888.18 218,563.44
Deferred income tax assets 28,793,169.88 27,079,997.63
Other non-current assets
Total of non-current assets 1,684,260,612.54 1,688,057,211.65
Total of assets 3,670,731,974.85 3,078,897,004.59
5
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Current liabilities
Short-term loans 300,052,500.00 300,351,666.67
Transactional financial
liabilities
Derivative financial
liabilities
Notes payable
Account payable 1,115,393.82 606,941.85
Prepayment received 832,154.41 858,019.63
Contract liabilities
Employees' wage payable 1,536,881.97 3,909,857.23
Taxes payable 861,765.79 3,447,040.12
Other payables 892,974,754.71 233,531,740.37
Including: interest payable
Dividend payable
Liabilities held for sales
Non-current liabilities due in
3,532,955.72 4,264,397.66
1 year
Other current liabilities
Total current liabilities 1,200,906,406.42 546,969,663.53
Non-current liabilities:
Long-term loans
Bond payable
Including: preferred stock
Perpetual bond
Lease liabilities 11,228,293.71 13,560,947.50
Long-term payable
Long-term employees' wage
payable
Anticipated liabilities
Deferred earning
Deferred income tax liabilities 74,263,872.99 74,447,416.01
Other non-current liabilities
Total of non-current liabilities 85,492,166.70 88,008,363.51
Total liabilities 1,286,398,573.12 634,978,027.04
Owner's equity:
Share capital 1,073,874,227.00 1,073,874,227.00
Other equity tools
Including: preferred stock
Perpetual bond
Capital reserves 360,835.52 360,835.52
Less: Shares in stock
Other miscellaneous income -520,786.11 -520,786.11
Special reserves
Surplus reserve 79,324,940.43 79,324,940.43
Retained profit 1,231,294,184.89 1,290,879,760.71
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Total of owners' equity 2,384,333,401.73 2,443,918,977.55
Total of liabilities and owner's
3,670,731,974.85 3,078,897,004.59
interest
3. Consolidated Income Statement
In RMB
Item H1 2022 H1 2021
1. Total revenue 1,613,063,315.30 1,568,778,834.98
Incl. Business income 1,613,063,315.30 1,568,778,834.98
Interest income
Insurance fee earned
Fee and commission
received
2. Total business cost 1,492,648,248.55 1,464,915,772.96
Incl. Business cost 1,259,515,842.60 1,208,641,803.18
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 23,203,954.56 35,853,693.88
Sales expense 23,296,105.78 25,434,914.81
Administrative expense 74,193,251.57 69,502,453.93
R&D cost 72,809,311.17 78,645,594.86
Financial expenses 39,629,782.88 46,837,312.30
Including: interest
50,244,714.46 43,637,100.05
cost
Interest income 19,918,179.96 6,976,161.44
Add: other gains 6,768,907.75 6,607,058.06
Investment gains (“-” for
4,595,678.43 -532,743.54
loss)
Incl. Investment gains
from affiliates and joint -32,974.15 -452,893.65
ventures
Financial assets
derecognised as a result of -1,859,057.85 -3,032,899.72
amortized cost
Exchange gains ("-" for
loss)
Net open hedge gains (“-”
for loss)
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Gains from change of fair
1,180,840.01 172,829.74
value (“-“ for loss)
Credit impairment ("-" for
25,016,298.34 19,853,416.06
loss)
Investment impairment loss
-27,659,612.75 3,466,913.89
("-" for loss)
Investment gains ("-" for
-815,581.50 -2,027,304.03
loss)
3. Operational profit ("-" for
129,501,597.03 131,403,232.20
loss)
Plus: non-operational income 446,386.82 1,201,106.46
Less: non-operational
2,578,001.31 3,480,374.51
expenditure
4. Gross profit ("-" for loss) 127,369,982.54 129,123,964.15
Less: Income tax expenses 13,005,121.74 13,936,493.66
5. Net profit ("-" for net loss) 114,364,860.80 115,187,470.49
(1) By operating consistency
1. Net profit from continuous
114,364,860.80 115,187,470.49
operation ("-" for net loss)
2. Net profit from
discontinuous operation ("-" for
net loss)
(2) By ownership
1. Net profit attributable to
112,685,273.77 111,488,701.33
the owners of parent company
2. Minor shareholders' equity 1,679,587.03 3,698,769.16
6. After-tax net amount of other
-427,835.59 -24,854.15
misc. incomes
After-tax net amount of other
misc. incomes attributed to -450,330.27 -1,460.74
parent's owner
(1) Other misc. incomes that
cannot be re-classified into gain -229,678.59
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
-229,678.59
investment in other equity tools
4. Fair value change of the
Company's credit risk
5. Others
(2) Other misc. incomes that
will be re-classified into gain -450,330.27 228,217.85
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
8
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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 -960,094.83 -785,690.88
6. Translation difference
509,764.56 -495,193.96
of foreign exchange statement
7. Others 1,509,102.69
After-tax net of other misc.
income attributed to minority 22,494.68 -23,393.41
shareholders
7. Total of misc. incomes 113,937,025.21 115,162,616.34
Total of misc. incomes
attributable to the owners of the 112,234,943.50 111,487,240.59
parent company
Total misc gains attributable
1,702,081.71 3,675,375.75
to the minor shareholders
8. Earnings per share:
(1) Basic earnings per share 0.10 0.10
(2) Diluted earnings per share 0.10 0.10
Net profit contributed by entities merged under common control in the report period was RMB0.00, net
profit realized by parties merged during the previous period is RMB0.00.
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua
4. Income Statement of the Parent Company
In RMB
Item H1 2022 H1 2021
1. Turnover 14,705,232.50 12,068,999.58
Less: Operation cost 418,824.01 89,904.13
Taxes and surcharges 655,596.71 664,469.85
Sales expense
Administrative expense 15,050,027.61 13,509,831.81
R&D cost
Financial expenses 6,762,805.90 7,575,722.85
Including: interest cost 5,419,166.67 7,449,236.11
Interest income 216,667.03 407,702.78
Add: other gains 72,308.39 85,100.49
Investment gains (“-” for
431,992.15 33,976,138.71
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)
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Gains from change of fair
value (“-“ for loss)
Credit impairment ("-" for
-12,016.02 -3,239.44
loss)
Investment impairment loss
("-" for loss)
Investment gains ("-" for
-26,723.69 -460.17
loss)
2. Operational profit (“-” for
-7,716,460.90 24,286,610.53
loss)
Plus: non-operational income 0.84 32,837.61
Less: non-operational
47,636.27 101,429.05
expenditure
3. Gross profit ("-" for loss) -7,764,096.33 24,218,019.09
Less: Income tax expenses -1,872,231.86 -2,200,178.64
4. Net profit (“-” for net
-5,891,864.47 26,418,197.73
loss)
(1) Net profit from continuous
-5,891,864.47 26,418,197.73
operation ("-" for net loss)
(2) Net profit from
discontinuous operation ("-" for
net loss)
5. After-tax net amount of other
1,509,102.69
misc. 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 be re-classified into gain 1,509,102.69
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
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
6. Translation difference
of foreign exchange statement
7. Others 1,509,102.69
6. Total of misc. incomes -5,891,864.47 27,927,300.42
7. Earnings per share:
(1) Basic earnings per share
(2) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Item H1 2022 H1 2021
1. Net cash flow from business
operations:
Cash received from sales of
products and providing of 1,404,641,263.99 1,573,340,053.10
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 13,589,221.42 16,480,293.15
Other cash received from
101,615,328.20 91,747,818.37
business operation
Sub-total of cash inflow from
1,519,845,813.61 1,681,568,164.62
business operations
Cash paid for purchasing
1,218,828,059.03 1,361,468,797.85
products and services
Net increase of client trade
and advance
Net increase of savings in
central bank and brother company
Cash paid for original contract
claim
Net increase in funds
11
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
dismantled
Cash paid for interest,
processing fee and commission
Cash paid for policy dividend
Cash paid to and for the staff 224,849,803.47 196,896,028.86
Taxes paid 88,742,682.58 431,724,633.10
Other cash paid for business
294,006,061.57 192,403,249.81
activities
Sub-total of cash outflow from
1,826,426,606.65 2,182,492,709.62
business operations
Cash flow generated by business
-306,580,793.04 -500,924,545.00
operations, net
2. Cash flow generated by
investment:
Cash received from investment
2,282,234,066.40 2,224,594,891.08
recovery
Cash received as investment
2,513,790.26 2,754,435.58
profit
Net cash retrieved from
disposal of fixed assets,
2,041,120.00 332,717.49
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
2,286,788,976.66 2,227,682,044.15
generated from investment
Cash paid for construction of
fixed assets, intangible assets 19,887,603.68 54,321,772.94
and other long-term assets
Cash paid as investment 2,389,975,144.00 2,167,460,000.00
Net increase of loan against
pledge
Net cash paid for acquiring
subsidiaries and other 125,388,100.00
operational units
Other cash paid for investment 1,323,355.15
Subtotal of cash outflows 2,409,862,747.68 2,348,493,228.09
Cash flow generated by investment
-123,073,771.02 -120,811,183.94
activities, net
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
1,168,411,688.20 1,220,000,000.00
loans
Other cash received from
financing activities
Subtotal of cash inflow from
1,168,411,688.20 1,220,000,000.00
financing activities
Cash paid to repay debts 328,500,000.00 445,249,952.00
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Cash paid as dividend, profit,
102,751,331.27 64,069,929.56
or interests
Incl. Dividend and profit paid
by subsidiaries to minority 4,560,100.00
shareholders
Other cash paid for financing
609,596,798.70 529,360,479.34
activities
Subtotal of cash outflow from
1,040,848,129.97 1,038,680,360.90
financing activities
Net cash flow generated by
127,563,558.23 181,319,639.10
financing activities
4. Influence of exchange rate
changes on cash and cash 3,757,947.63 -671,353.77
equivalents
5. Net increase in cash and cash
-298,333,058.20 -441,087,443.61
equivalents
Plus: Balance of cash and cash
equivalents at the beginning of 892,251,071.59 1,028,386,529.73
term
6. Balance of cash and cash
equivalents at the end of the 593,918,013.39 587,299,086.12
period
6. Cash Flow Statement of the Parent Company
In RMB
Item H1 2022 H1 2021
1. Net cash flow from business
operations:
Cash received from sales of
products and providing of 10,460,521.63 10,393,331.14
services
Tax refunded
Other cash received from
1,764,596,018.97 2,246,619,631.82
business operation
Sub-total of cash inflow from
1,775,056,540.60 2,257,012,962.96
business operations
Cash paid for purchasing
981,699.47 342,534.67
products and services
Cash paid to and for the staff 11,795,461.40 10,905,880.26
Taxes paid 3,942,572.28 3,555,895.62
Other cash paid for business
1,647,625,265.89 2,367,856,652.84
activities
Sub-total of cash outflow from
1,664,344,999.04 2,382,660,963.39
business operations
Cash flow generated by business
110,711,541.56 -125,648,000.43
operations, net
2. Cash flow generated by
investment:
Cash received from investment
845,000,000.00 382,800,000.00
recovery
Cash received as investment
431,992.15 33,976,138.71
profit
Net cash retrieved from
disposal of fixed assets, 675,000.00
intangible assets, and other
13
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
long-term assets
Net cash received from disposal
of subsidiaries or other
operational units
Other investment-related cash
received
Sub-total of cash inflow
846,106,992.15 416,776,138.71
generated from investment
Cash paid for construction of
fixed assets, intangible assets 113,230.00 239,020.66
and other long-term assets
Cash paid as investment 845,000,000.00 382,800,000.00
Net cash paid for acquiring
subsidiaries and other
operational units
Other cash paid for investment
Subtotal of cash outflows 845,113,230.00 383,039,020.66
Cash flow generated by investment
993,762.15 33,737,118.05
activities, net
3. Cash flow generated by
financing activities:
Cash received from investment
Cash received from borrowed
300,000,000.00 300,000,000.00
loans
Other cash received from
financing activities
Subtotal of cash inflow from
300,000,000.00 300,000,000.00
financing activities
Cash paid to repay debts 300,000,000.00 300,000,000.00
Cash paid as dividend, profit,
60,578,669.24 8,748,888.89
or interests
Other cash paid for financing
activities
Subtotal of cash outflow from
360,578,669.24 308,748,888.89
financing activities
Net cash flow generated by
-60,578,669.24 -8,748,888.89
financing activities
4. Influence of exchange rate
changes on cash and cash -22,654.47
equivalents
5. Net increase in cash and cash
51,103,980.00 -100,659,771.27
equivalents
Plus: Balance of cash and cash
equivalents at the beginning of 111,598,536.84 204,578,995.78
term
6. Balance of cash and cash
equivalents at the end of the 162,702,516.84 103,919,224.51
period
7. Statement of Change in Owners' Equity (Consolidated)
Amount of the Current Term
In RMB
H1 2022
Item
Owners' Equity Attributable to the Parent Company Min Tot
14
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Other equity Oth or al
Com sha of
tools Les er
Cap Spe Sur mon reh own
Sha s: mis Ret
ita cia plu ris old ers
re Pre Per Sha cel ain Sub
l l s k Oth ers '
cap fer pet res lan ed tot
Oth res res res pro ers ' equ
ita red ual in eou pro al
ers erv erv erv vis equ ity
l sha bon sto s fit
es es e ion ity
re d ck inc
s
ome
1,0 4,3 5,5 5,5
11, 35, 79, 67,
1. Balance 73, 24, 24, 91,
459 325 324 166
at the end 874 055 039 205
,58 ,87 ,94 ,03
of last ,22 ,25 ,88 ,91
8.4 1.7 0.4 1.6
year 7.0 9.3 6.9 8.6
0 8 3 6
0 3 4 0
Plus:
Changes in
accounting
policies
Co
rrection
of
previous
errors
Co
nsolidatio
n of
entities
under
common
control
Ot
hers
1,0 4,3 5,5 5,5
2. Balance 11, 35, 79, 67,
73, 24, 24, 91,
at the 459 325 324 166
874 055 039 205
beginning ,58 ,87 ,94 ,03
,22 ,25 ,88 ,91
of current 8.4 1.7 0.4 1.6
7.0 9.3 6.9 8.6
year 0 8 3 6
0 3 4 0
3. Change
amount in - 58, 58, 60,
1,7
the 450 991 541 243
02,
current ,33 ,56 ,23 ,31
081
period 0.2 2.4 2.1 3.8
.71
(“-“ for 7 2 5 6
decrease)
- 112 112 113
1,7
(1) Total 450 ,68 ,23 ,93
02,
of misc. ,33 5,2 4,9 7,0
081
incomes 0.2 73. 43. 25.
.71
7 77 50 21
(2)
Investment
or
decreasing
15
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
of capital
by owners
1. Common
shares
invested
by owners
2. Capital
contribute
d by other
equity
instrument
holders
3. Amount
of shares
paid and
accounted
as owners'
equity
4. Others
- - -
53, 53, 53,
(3) Profit 693 693 693
allotment ,71 ,71 ,71
1.3 1.3 1.3
5 5 5
1.
Provision
of surplus
reserves
2. Common
risk
provision
3. - - -
Distributi 53, 53, 53,
on to 693 693 693
owners (or ,71 ,71 ,71
shareholde 1.3 1.3 1.3
rs) 5 5 5
4. Others
(4)
Internal
carry-over
of owners'
equity
1.
Capitalizi
ng of
capital
reserves
(or share
capital)
2.
Capitalizi
ng of
16
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
surplus
reserves
(or share
capital)
3. Surplus
reserves
used to
cover
losses
4.
Retained
gain
transferre
d due to
change in
set
benefit
program
5. Other
miscellane
ous income
6. Others
(5)
Special
reserves
1.
Provided
this year
2. Used
this
period
(6) Others
1,0 4,3 5,5 5,6
11, 34, 79, 68,
4. Balance 73, 83, 82, 51,
459 875 324 868
at the end 874 046 581 449
,58 ,54 ,94 ,11
of this ,22 ,82 ,11 ,23
8.4 1.5 0.4 3.3
period 7.0 1.7 9.0 2.4
0 1 3 7
0 5 9 6
Amount of Last Year
In RMB
H1 2021
Owners' Equity Attributable to the Parent Company
Min
Other equity Oth Tot
Com or
tools Les er al
Cap Spe Sur mon sha
Sha s: mis Ret of
Item ita cia plu ris reh
re Pre Per Sha cel ain Sub own
l l s k Oth old
cap fer pet res lan ed tot ers
Oth res res res pro ers ers
ita red ual in eou pro al '
ers erv erv erv vis '
l sha bon sto s fit equ
es es e ion equ
re d ck inc ity
s ity
ome
1. Balance 1,0 11, 42, 2,0 106 4,2 5,3 66, 5,4
17
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
at the end 88, 459 748 78, ,78 15, 80, 538 47,
of last 278 ,58 ,53 167 3,4 005 857 ,83 395
year ,95 8.4 0.1 .63 36. ,54 ,15 6.0 ,99
1.0 0 2 96 1.5 5.3 9 1.4
0 2 9 8
Plus:
Changes in
accounting
policies
Co
rrection
of
previous
errors
Co
nsolidatio 11, 12,
9,0 2,5 1,2
n of 521 801
00, 21, 80,
entities ,70 ,89
000 701 189
under 1.0 0.0
.00 .04 .00
common 4 4
control
Ot
hers
1,0 4,2 5,3 5,4
2. Balance 20, 42, 106 67,
88, 2,0 17, 92, 60,
at the 459 748 ,78 819
278 78, 527 378 197
beginning ,58 ,53 3,4 ,02
,95 167 ,24 ,85 ,88
of current 8.4 0.1 36. 5.0
1.0 .63 2.5 6.4 1.5
year 0 2 96 9
0 6 3 2
3. Change
- - -
amount in 101 87, 110 27, 138
14, 42, - 106
the ,75 380 ,69 559 ,25
404 748 1,4 ,78
current 1,7 ,88 1,5 ,47 1,0
,72 ,53 60. 3,4
period 83. 7.7 80. 8.8 58.
4.0 0.1 74 36.
(“-“ for 91 5 08 1 89
0 2 96
decrease)
111 111 115
- 3,6
(1) Total ,48 ,48 ,16
1,4 75,
of misc. 8,7 7,2 2,6
60. 375
incomes 01. 40. 16.
74 .75
33 59 34
(2) - - -
Investment 14, 42, 28,
or 404 748 343
decreasing ,72 ,53 ,80
of capital 4.0 0.1 6.1
by owners 0 2 2
- - -
1. Common 14, 42, 28,
shares 404 748 343
invested ,72 ,53 ,80
by owners 4.0 0.1 6.1
0 2 2
2. Capital
contribute
18
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
d by 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.
Distributi
on to
owners (or
shareholde
rs)
4. Others
(4)
Internal
carry-over
of owners'
equity
1.
Capitalizi
ng of
capital
reserves
(or share
capital)
2.
Capitalizi
ng of
surplus
reserves
(or share
capital)
3. Surplus
reserves
used to
cover
losses
4.
Retained
19
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
gain
transferre
d due to
change in
set
benefit
program
5. Other
miscellane
ous income
6. Others
(5)
Special
reserves
1.
Provided
this year
2. Used
this
period
- -
101 - 23, 23,
78, 24,
,75 795 884 088
439 107
(6) Others 1,7 ,66 ,10 ,44
,63 ,81
83. 0.5 3.0 2.5
0.8 3.5
91 1 6 5
4 8
1,0 4,3 5,5 5,5
122 95,
4. Balance 73, 2,0 04, 03, 98,
,21 378
at the end 874 76, 908 070 448
1,3 ,50
of this ,22 706 ,13 ,43 ,94
72. 3.9
period 7.0 .89 0.3 6.5 0.4
31 0
0 1 1 1
8. Statement of Change in Owners' Equity (Parent Company)
Amount of the Current Term
In RMB
H1 2022
Other equity tools Other Total
Capit Less: misce Speci Surpl Retai of
Item Share
Prefe Perpe al Share llane al us ned Other owner
capit Other
rred tual reser s in ous reser reser profi s s'
al s
share bond ves stock incom ves ve t equit
e y
1. Balance 1,073 1,290 2,443
- 79,32
at the end ,874, 360,8 ,879, ,918,
520,7 4,940
of last 227.0 35.52 760.7 977.5
86.11 .43
year 0 1 5
Plus:
Changes in
accounting
policies
20
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Co
rrection
of
previous
errors
Ot
hers
2. Balance
1,073 1,290 2,443
at the - 79,32
,874, 360,8 ,879, ,918,
beginning 520,7 4,940
227.0 35.52 760.7 977.5
of current 86.11 .43
0 1 5
year
3. Change
amount in
- -
the
59,58 59,58
current
5,575 5,575
period
.82 .82
(“-“ for
decrease)
- -
(1) Total
5,891 5,891
of misc.
,864. ,864.
incomes
47 47
(2)
Investment
or
decreasing
of capital
by owners
1. Common
shares
invested
by owners
2. Capital
contribute
d by other
equity
instrument
holders
3. Amount
of shares
paid and
accounted
as owners'
equity
4. Others
- -
(3) Profit 53,69 53,69
allotment 3,711 3,711
.35 .35
1.
Provision
of surplus
reserves
21
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
2.
Distributi - -
on to 53,69 53,69
owners (or 3,711 3,711
shareholde .35 .35
rs)
3. Others
(4)
Internal
carry-over
of owners'
equity
1.
Capitalizi
ng of
capital
reserves
(or share
capital)
2.
Capitalizi
ng of
surplus
reserves
(or share
capital)
3. Surplus
reserves
used to
cover
losses
4.
Retained
gain
transferre
d due to
change in
set
benefit
program
5. Other
miscellane
ous income
6. Others
(5)
Special
reserves
1.
Provided
this year
2. Used
this
period
22
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
(6) Others
4. Balance 1,073 1,231 2,384
- 79,32
at the end ,874, 360,8 ,294, ,333,
520,7 4,940
of this 227.0 35.52 184.8 401.7
86.11 .43
period 0 9 3
Amount of Last Year
In RMB
H1 2021
Other equity tools Other Total
Capit Less: misce Speci Surpl Retai of
Item Share
Prefe Perpe al Share llane al us ned Other owner
capit Other
rred tual reser s in ous reser reser profi s s'
al s
share bond ves stock incom ves ve t equit
e y
1. Balance 1,088 1,282 2,435
42,74 - 106,7
at the end ,278, 360,8 ,911, ,215,
8,530 371,1 83,43
of last 951.0 35.52 974.3 538.0
.12 29.71 6.96
year 0 8 3
Plus:
Changes in
accounting
policies
Co
rrection
of
previous
errors
Ot
hers
2. Balance
1,088 1,282 2,435
at the 42,74 - 106,7
,278, 360,8 ,911, ,215,
beginning 8,530 371,1 83,43
951.0 35.52 974.3 538.0
of current .12 29.71 6.96
0 8 3
year
3. Change
amount in
- - -
the 1,509 26,41 27,92
14,40 42,74 28,34
current ,102. 8,197 7,300
4,724 8,530 3,806
period 69 .73 .42
.00 .12 .12
(“-“ for
decrease)
(1) Total 1,509 26,41 27,92
of misc. ,102. 8,197 7,300
incomes 69 .73 .42
(2)
Investment - - -
or 14,40 42,74 28,34
decreasing 4,724 8,530 3,806
of capital .00 .12 .12
by owners
1. Common - - -
shares 14,40 42,74 28,34
23
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
invested 4,724 8,530 3,806
by owners .00 .12 .12
2. Capital
contribute
d by 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.
Distributi
on to
owners (or
shareholde
rs)
3. Others
(4)
Internal
carry-over
of owners'
equity
1.
Capitalizi
ng of
capital
reserves
(or share
capital)
2.
Capitalizi
ng of
surplus
reserves
(or share
capital)
3. Surplus
reserves
used to
cover
losses
4.
24
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Retained
gain
transferre
d due to
change in
set
benefit
program
5. Other
miscellane
ous income
6. Others
(5)
Special
reserves
1.
Provided
this year
2. Used
this
period
(6) Others
4. Balance 1,073 1,309 2,463
1,137 78,43
at the end ,874, 360,8 ,330, ,142,
,972. 9,630
of this 227.0 35.52 172.1 838.4
98 .84
period 0 1 5
III. General Information
1. About the Company
China Fangda Group Co., Ltd. (the “Company” or the “Group”) is a joint stock company registered
in Shenzhen, Guangdong and was approved by the Government of Shenzhen with Document 深府办函 (1995) 194
号 , and was founded, on the basis of Shenzhen Fangda Construction Material Co., Ltd., by way of share
issuing in October 1995. 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 20116. According to the 2016
profit distribution plan approved by the 2016 general meeting of shareholders, based on the total share
capital of 789,094,836 shares as of December 31, 2016, the Company transferred 5 shares for every 10
shares to all shareholders with the capital reserve. The registered capital at the end of 2017 was RMB
1,183,642,254.00. The Company repurchased and canceled 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 April
2021 and cancelled in April 2021. The existing registered capital is RMB1,073,874,227.00 yuan.
25
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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 Departme nt and
has established subsidiaries including Fangda Jianke, Fangda Zhiyuan, Fangda Jiangxi New Material, Fangda
Property and Fangda New Energy.
The business nature and main business operations of the Company and subsidiaries 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 26, 2022.
2. Consolidation Scope and Change
The total number of subsidiaries included in the consolidation scope of the Company in this period is
33, and there are no change and subsidiaries in consolidation scope in this period. Please refer to
“VIII. Changes in the Consolidation Scope" and " IX. Interests in Other Entities" for details.
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
26
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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 The fiscal period ranges between January 1 and 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
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.
For the accounting treatment method of business combination under the same control through step -by-
step transactions, see V. Important accounting policies and accounting e stimates. VI. Preparation method
of consolidated financial statements (5) accounting treatment of special transactions.
(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 liabiliti es 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.
27
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
For the accounting treatment method of business combination not under the same control through step-
by-step transactions, see V. important accounting policies and accounting estimates. 6. Preparation
method of consolidated financial statements (5) accounting treatment of special transactions.
(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) 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 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
28
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
(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 su bsidiary 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. Subsidiary or business increased by business combination 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
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
29
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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 t ransactions
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.
30
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
In consolidated financial statements, assets and liabilities obtained by the merging party from the
merged party should be measured at the book value in the final controlling party's consolid ated 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.
A. Enterprise merger 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 conve rted 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 i s 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
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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 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 contro l; 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 incre ase 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 th e 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.
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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 item s 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 current profits and losses.
(3) Translation of foreign exchange statements
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 i tems
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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
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.
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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, amort ization 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 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 amortiz ed 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.
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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:
a. 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.
B. 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.
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
(4) Derivative financial instruments and embedded derivatives
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) Financial instrument Less
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
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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 i nitial 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.
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.
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 determ ining the combination is as follows:
The basis for determining the combination of notes receivable is as follows:
Notes Receivable Combination 1 Commercial Acceptance Bill
Notes Receivable Combination 2 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 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,
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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:
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 his torical 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
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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 b y 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 pe rform 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 guarantees, or mak ing 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
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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 substan tial
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 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
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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 relatio nship 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 derecognize d 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.
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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.
(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
For the method of determining the fair value of financial assets and financial liabilities, see V.
important accounting policies and accounting estimates 34. Other important accounting policies and
accounting estimates (1) fair value measurement.
10. Notes receivable
See V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.
11. Account receivable
See V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.
12. Receivable financing
See V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.
13. Other receivables
See 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
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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) Pricing of delivering 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.
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 co sts 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 provis ion
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 decr ease 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.
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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
Low-value consumables are amortized on on-off amortization basis at using.
15. Contract assets
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 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 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
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 w hen 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
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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 initia l recognition.
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
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Company cannot participate the decision-making of production and operation of the invested entity, the
Company has major influence on the invested entity.
(2) Recognition of initial investment costs
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 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.
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
(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 n et 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 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.
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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
For the investment in subsidiaries and associated enterprises, the method of withdrawing asset
impairment is shown in V. important accounting policies and accounting estimates. 24. Impairment of long-
term assets.
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
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
construction is measured by cost. When the fair value can be measured reliably or after completion (the
earlier one), it is measured at fair value. For an investment real estate whose fair value i s 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 used for subsequent measurement of investment real estate, depreciation or
amortization is calculated according to the straight-line method after the cost of investment real estate
minus accumulated impairment and net residual value. See this V. Important accounting policies, for the
method of accruing asset impairment 24. Impairment of long-term assets in accounting estimates.
The types of investment real estate, estimated economic useful life and estimated net residual value
rate are determined as follows:
Type Service year (year) Residual rate % Annual depreciation
rate %
Houses & buildings 20-50 10.00 1.80-4.50
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.
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 Service year Residual
Type depreciation
method (year) rate %
rate %
Houses & buildings Average age 20-50 10.00 1.80-4.50
Mechanical
Average age 10.00 10.00 9.00
equipment
Transportation
Average age 5.00 10.00 18.00
facilities
Electronics and
Average age 5.00 10.00 18.00
other devices
PV power plants Average age 20.00 5.00 4.75
For fixed assets for which depreciation provision is made, the depreciation rate will be determined
after the accumulative depreciation provision amount is deducted.
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
At end of each fiscal year, verification will be made on the useful life, predicted retained value,
and depreciation basis. The useful life will be adjusted if the useful life is different from the
predicted one; the net residual value will be adjusted if the net residual value is different from the
predicted one.
20. Construction in process
Construction in progress is accounted for by project classification.
Standard and timing for transferring construction in process into fixed assets
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
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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
The term "right to use assets" refers to the right of the lessee to use the leased assets during the
lease term.
At the beginning of the lease term, the right of use assets are initially measured at cost. This cost
includes:
(1) The initial measurement amount of lease liabilities;
(2) For the lease payment paid on or before the beginning of the lease term, if there is lease
incentive, the relevant amount of lease incentive enjoyed shall be deducted;
(3) Initial direct expenses incurred by the lessee;
(4) The estimated cost incurred by the lessee for dismantling and removing the leased assets,
restoring the site where the leased assets are located or restoring the leased assets to the state agreed
in the lease terms. The Company recognizes and measures the cost in accordance with the recognition
standards and measurement methods of estimated liabilities. See 29. Estimated liabilities in V. important
accounting policies and accounting estimates for details. If the above costs are incurred for the
production of inventories, they will be included in the cost of inventories.
Depreciation of right of use assets is accrued by using the straight-line method. If it can be
reasonably determined that the ownership of the leased asset will be obtained at the expiration of the
lease term, the depreciation rate shall be determined according to the asset category of the right to use
and the estimated net residual value rate within the expected remaining service life of the leased asset;
If it is impossible to reasonably determine that the ownership of the leased asset will be obtained at
the expiration of the lease term, the depreciation rate shall be determined according to the asset
category of the right of use within the shorter of the lease term and the remaining service life of the
leased asset.
23. Intangible assets
(1) Pricing method, service life and depreciation test
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
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Land using right Term Use right assets
Trademarks and 10 Reference to determine the lifetime of a company
patents for which it can bring economic benefits
Proprietary 10 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 recheckin g, 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.
(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 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;
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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 g roup 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.
Once recognized, the asset impairment loss cannot be written back in subsequent a ccounting period.
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
25. Long-term amortizable expenses
The long-term deferred expenses shall be used to calculate the expenses that have occurred but should
be borne by the Company in the current and subsequent periods with a amortization period of more than one
year. The Company's long-term deferred expenses are amortized averagely during the benefit period.
26. Contract liabilities
For details, please refer to 15. Contract assets in V. Important accounting policies and accounting
estimates in this section.
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.
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
(2) Accounting of post-employment welfare
The Company'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 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 t he 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.
28. Lease liabilities
The lease liabilities are initially measured Company shall according to the present value of the
unpaid lease payments at the beginning of the lease term. The lease payment includes the following five
items:
(1) Fixed payment amount and substantial fixed payment amount. If there is lease incentive, the
relevant amount of lease incentive shall be deducted;
(2) Variable lease payments depending on index or ratio;
(3) The exercise price of the purchase option, provided that the lessee reasonably determines that
the option will be exercised;
(4) The amount to be paid for exercising the option to terminate the lease, provided that the lease
term reflects that the lessee will exercise the option to terminate the lease;
(5) The amount expected to be paid according to the residual value of the guarantee provided by the
lessee.
When calculating the present value of lease payments, the implicit interest rat e of the lease is used
as the discount rate. If the implicit interest rate of the lease cannot be determined, the incremental
borrowing interest rate of the company is used as the discount rate. The difference between the lease
payment amount and its present value is regarded as unrecognized financing expenses, and the interest
expenses are recognized according to the discount rate of the present value of the lease payment amount
during each period of the lease term and included in the current profit and loss. The amount of variable
lease payments not included in the measurement of lease liabilities shall be included in the current
profit and loss when actually incurred.
After the beginning date of the lease term, when the actual fixed payment amount changes, the
expected payable amount of the guaranteed residual value changes, the index or ratio used to determine
the lease payment amount changes, the evaluation results or actual exercise of the purchase option,
renewal option or termination option changes, the Company remeasures the lease liability according to the
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
present value of the changed lease payment amount, And adjust the book value of the right to use assets
accordingly.
29. Anticipated liabilities
(1) Recognition standards of anticipated 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 Com pany;
② Execution of this responsibility may cause financial benefit outflow from the Company;
③ Amount of the liability can be reliably measured.
(2) Measurement of anticipated 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
Accounting policies used in revenue recognition and measurement
(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 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 Compa ny 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
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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 pa yment 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
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 a bove
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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 th e 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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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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;
The following conditions should be met for the recognition of export product revenue: the Company has
declared the product 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 goods have been transferred, and the legal ownership of goods
has been transferred.
② Service contract
The service contract between the Company and its customers includes the performance obligations of
metro platform screen door operation maintenance, curtain wall 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 t he
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
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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. 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.
Differences in revenue recognition accounting policies caused by different business models of similar
businesses
There is no difference in revenue recognition due to the adoption of different accounting policies
for similar businesses.
31. Government subsidy
(1) Government subsidy
Government subsidies are recognized when the following conditions are met:
① Requirements attached to government subsidies;
② The Company can receive government subsidies.
(2) Government subsidy
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 pur chase, 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:
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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.
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;
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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 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 go odwill 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
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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 t he 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 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.
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
33. Leasing
(1) Identification of lease
On the commencement date of the contract, the company evaluates whether the contract is a lease or
includes a lease. If one party in the contract transfers the right to control the use of one or more
identified assets within a certain period in exchange for consideration, the contract is a lease or
includes a lease. In order to determine whether the contract transfers the right to control the use of
the identified assets within a certain period, the company evaluates wh ether the customers in the
contract have the right to obtain almost all the economic benefits arising from the use of the identified
assets during the use period, and have the right to dominate the use of the identified assets during the
use period.
(2) Separate identification of lease
If the contract includes multiple separate leases at the same time, the company will split the
contract and conduct accounting treatment for each separate lease. If the following conditions are met at
the same time, the right to use the identified asset constitutes a separate lease in the contract: ① the
lessee can profit from using the asset alone or together with other easily available resources; ② The
asset is not highly dependent or highly related to other assets in the co ntract.
(3) Accounting treatment method of the Company as lessee
On the beginning date of the lease term, the Company recognizes the lease with a lease term of no
more than 12 months and excluding the purchase option as a short-term lease; When a single leased asset
is a brand-new asset, the lease with lower value is recognized as a low value asset lease. If the Company
sublets or expects to sublet the leased assets, the original lease is not recognized as a low value asset
lease.
For all short-term leases and low value asset leases, the Company will record the lease payment
amount into the relevant asset cost or current profit and loss according to the straight -line method (or
other systematic and reasonable methods) in each period of the lease term.
In addition to the above short-term leases and low value asset leases with simplified treatment, the
Company recognizes the right to use assets and lease liabilities for the lease on the beginning date of
the lease term. The recognition and measurement of right of use assets and lease liabilities are detailed
in V. Important accounting policies and accounting estimates. 22. Right of use assets and 28. Lease
liabilities.
(4) Accounting treatment method of the Company as lessor
On the lease commencement date, the Company classifies leases that have substantially transferred
almost all the risks and rewards related to the ownership of the leased assets as financial leases, and
all other leases are operating leases.
① Operating lease
During each period of the lease term, the Company recognizes the lease receipts as rental income
according to the straight-line method (or other systematic and reasonable methods), and the initial
direct expenses incurred are capitalized, amortized on the same basis as the recognition of rental income,
and included in the current profit and loss by stages. The variable lease payments obtained by the
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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Company related to operating leases that are not included in the lease receipts are included in the
current profits and losses when actually incurred.
② Finance lease
On the lease beginning date, the Company recognizes the financial lease receivables according to the
net amount of the lease investment (the sum of the unsecured residual value and the present value of the
lease receipts not received on the lease beginning date discounted according to the lease embedded
interest rate), and terminates the recognition of the financial lease assets. During each period of the
lease term, the Company calculates and recognizes the interest income according to the interest rate
embedded in the lease.
The amount of variable lease payments obtained by the Company that are not included in the
measurement of net lease investment shall be included in the current profit and loss when actually
incurred.
(5) Accounting treatment of lease change
① Change of lease as a separate lease
If the lease changes and meets the following conditions at the same time, the Company will treat the
lease change as a separate lease for accounting: a. the lease change expands the lease scope by
increasing the use right of one or more leased assets; B. The increased consideration is equivalent to
the amount adjusted according to the conditions of the contract at the separate price for most of the
expansion of the lease scope.
② The lease change is not treated as a separate lease
A. The Company as lessee
On the effective date of the lease change, the Company reconfirmed the lease term and discounted the
changed lease payment at the revised discount rate to re-measure the lease liability. When calculating
the present value of the lease payment after the change, the implicit interest rate of the lease during
the remaining lease period shall be used as the discount rate; If it is impossible to determine the
implicit interest rate of the lease for the remaining lease period, the incremental loan interest rate on
the effective date of the lease change shall be used as the discount rate.
The impact of the above lease liability adjustment shall be accounted for according to the following
circumstances:
If the lease scope is reduced or the lease term is shortened due to the lease change, the book value
of the right to use assets shall be reduced, and the relevant gains or losses of partial or complete
termination of the lease shall be included in the current profits and losses; for other lease changes,
the book value of the right to use assets shall be adjusted accordingly.
The Company as leasor
If the operating lease is changed, the Company will treat it as a new lease for accounting from the
effective date of the change, and the amount of lease receipts received in advance or receivable related
to the lease before the change is regarded as the amount of new lease receipts.
If the change of financial lease is not accounted for as a separate lease, the Company will deal with
the changed lease under the following circumstances: if the change of lease takes effect on the lease
66
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
commencement date and the lease will be classified as an operating lease, the Company will account for it
as a new lease from the effective date of lease change, and take the net lease investment before the
effective date of lease change as the book value of leased assets; If the lease change takes effect on
the lease commencement date, the lease will be classified as a financial lease, and the Company will
conduct accounting treatment in accordance with the provisions on modifying or renegotiating the contract.
(6) Sale and lease-back
The Company assesses and determines whether the asset transfer in the sale and leaseback trans action
is a sale in accordance with the provisions of 30. Income in V, Important accounting policies and
accounting estimates.
① The Company as seller (lessee)
If the asset transfer in the sale and leaseback transaction does not belong to sales, the Company
will continue to recognize the transferred assets, recognize a financial liability equal to the transfer
income, and conduct accounting treatment for the financial liability in accordance with 9 。 Financial
instruments in V, Important accounting policies and accounting estimates. If the asset transfer belongs
to sales, the Company measures the right to use assets formed by sale and leaseback according to the part
of the book value of the original assets related to the right to use obtained by leaseback, and only
recognizes the relevant gains or losses on the rights transferred to the lessor.
② The Company as buyer (lessor)
If the asset transfer in the sale and leaseback transaction does not belong to sales, the company
does not recognize the transferred asset, but recognizes a financial asset equal to the transfer income,
and carries out accounting treatment on the financial asset in accordance with 9. Financial instruments
in V. Important accounting policies and accounting estimates. If the asset transfer belon gs to sales, the
Company shall conduct accounting treatment for asset purchase and asset lease in accordance with other
applicable accounting standards for business enterprises.
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 pri ces 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.
67
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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 a re 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.
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) Accounting of hedging
(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 chan ge 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
68
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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 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
69
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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 relati onship has not changed,
the Company shall rebalance the hedging relationship.
(2.4) Revenue the of revenue recognition and measurement
If the conditions for applying hedge accounting method are met, it shall be handled according to the
following methods:
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 t he
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 a ccounting, 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 premium), surplus
reserve and undistributed profits in turn; A portion of a capital reserve (shar e capital premium) that is
less than the total face value and less than the total face value.
70
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
(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 Company 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 company 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 company 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 o nly 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 Company 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 l osses.
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.
Income recognition
71
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
The Company'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
Company in the future.
Engineering contract
The management shall make relevant judgment to confirm the income and expenses of project contracting
business according to the performance progress. If losses are expected to occur in the project contract,
such losses shall be recognized as current expenses. The management of the Company estimates the possible
losses according to the budget of the project contract. The Company determines the transaction price
according to the terms of the contract and in combination with previous customary practices, and
considers the influence of variable consideration, major financing components in the contr act and other
factors. During the performance of the contract, the Company continuously reviews the estimated total
contract revenue and the estimated total contract cost. When the initial estimate changes, such as
contract changes, claims and awards, the estimated total contract revenue and the estimated total
contract cost are revised. When the estimated total contract cost exceeds the total contract revenue, the
main business cost and estimated liabilities shall be recognized according to the loss contra ct to be
executed.
Estimate of fair value
The Company 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 important accounting policies
□ Applicable Inapplicable
(2) Changes in major accounting estimates
□ 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 Taxable turnover 1%, 5%, 7%
tax
Enterprise income tax Taxable income See the following table
72
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Education surtax Taxable turnover 3%
Local education surtax Taxable turnover 2%
Tax rates applicable for different tax payers
Tax payer Income tax rate
The Company 25%
Shenzhen Fangda Jianke Co., Ltd. (hereinafter Fangda Jianke) 15%
Fangda Zhiyuan Technology Co., Ltd. (hereinafter Fangda Zhiyuan) 15%
Fangda New Material (Jiangxi) Co., Ltd. (hereinafter Fangda Jiangxi
15%
New Material)
Dongguan Fangda New Material Co., Ltd. (hereinafter Fangda Dongguan
15%
New Material)
Chengdu Fangda Construction Technology Co., Ltd. (hereinafter Fangda
15%
Chengdu Technology)
Shenzhen Fangda Property Development Co., Ltd. (hereinafter Fangda
25%
Property Development)
Shenzhen Fangda New Energy Co., Ltd. (hereinafter Fangda New Energy) 25%
Shenzhen Fangda Property Development Co., Ltd. (hereinafter Fangda
25%
Property Development)
Jiangxi Fangda Property Development Co., Ltd. (hereinafter Fangda
25%
Jiangxi Property Development)
Pingxiang Fangda Luxin New Energy Co., Ltd. (hereinafter Fangda Luxin
25%
New Energy)
Nanchang Xinjian Fangda New Energy Co., Ltd. (hereinafter Fangda
25%
Xinjian New Energy)
Dongguan Fangda New Energy Co., Ltd. (hereinafter Fangda Dongguan New
25%
Energy)
Shenzhen QIanhai Kechuangyuan Software Co., Lt.d (hereinafter
25%
Kechuangyuan Software)
Fangda Zhichuang Technology (Hong Kong) Co., Ltd, (Fangda Zhichuang
16.50%
Hong Kong)
Fangda Zhiyuan Technology (Wuhan) Co., Ltd, (Fangda Wuhan Zhiyuan) 25%
Fangda Zhiyuan Technology (Nanchang) Co., Ltd, (Fangda Nanchang
25%
Zhiyuan)
Fangda Zhichuang Technology (Dongguan) Co., Ltd, (Fangda Dongguan
25%
Zhichuang)
General Rail Technology Private Limited 17%
Shihui International Holding Co., Ltd. (hereinafter Fangda Shihui
16.50%
International)
Shenzhen Hongjun Investment Co., Ltd. (hereinafter Fangda Hongjun
25%
Investment)
Fangda Australia Pty Ltd (hereinafter Fangda Australia) 30%
Shanghai Fangda Zhijian Technology Co., Ltd. (hereinafter referred to
15%
as Fangda Shanghai Zhijian company)
Shenzhen Fangda Yunzhi Technology Co., Ltd. (hereinafter Fangda
25%
Yunzhi)
Shanghai Fangda Jianzhi Technology Co., Ltd. (hereinafter Fangda
25%
Shanghai Jianzhi)
Shenzhen Zhongrong Litai Investment Co. Ltd. (Zhongrong Litai) 25%
Chengdu Fangda Curtain Wall Technology Co., Ltd. (hereinafter Fangda
25%
Chengdu Curtain Wall)
Fangda Southeast Asia Co., Ltd. (hereinafter Fangda Southeast Asia) 20%
Shenzhen Xunfu Investment Co., Ltd. (hereinafter referred to as Fangda
25%
Xunfu Investment)
Shenzhen Lifu Investment Co., Ltd. (hereinafter referred to as Fangda 25%
73
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Lifu Investment)
Shenzhen Fangda Investment Partnership (Limited Partnership)
Inapplicable
(hereinafter referred to as Fangda Investment)
Fangda Jianke (Hong Kong) Co., Ltd. (hereinafter Fangda Jianke Hong
16.50%
Kong)
Shenzhen Fangda Yunzhu Technology Co., Ltd. (hereinafter Fangda
15%
Yunzhu)
Shenzhen Yunzhu Testing Technology Co., Ltd. (Hereinafter Fangda
25%
Yunzhu Testing)
2. Tax preference
(1) On December 23, 2021, the subsidiary Fangda Jianke obtained the certificate of high-tech
enterprise jointly issued by Shenzhen Science and Technology Innovation Commission, Shenzhen Finance
Bureau, State Administration of Taxation and Shenzhen Taxation Bureau. The certificate numb er is
GR202144200527. Within three years after obtaining the qualification of high -tech enterprise (from 2021
to 2023), the income tax will be levied at 15%.
(2) On December 23, 2021, the subsidiary Fangda Zhiyuan Technology Co., Ltd. obtained the
certificate of high tech enterprise jointly issued by Shenzhen Science and Technology Innovation
Commission, Shenzhen Finance Bureau, State Administration of Taxation and Shenzhen Taxation Bureau. The
certificate number is GR202144205924. Within three years after obtaining the qualification of high tech
enterprise (from 2021 to 2023), the income tax will be levied at 15%.
(3) On November 3, 2021, the subsidiary Fangda Jiangxi New Material Co., Ltd. obtained the
certificate of high tech enterprise jointly issued by Jiangxi Provincial Department of Science and
Technology, Jiangxi Provincial Department of Finance, State Administration of Taxation and Jiangxi
Provincial Bureau of Taxation. The certificate number is GR202136000174. Within three years after
obtaining the qualification of high tech enterprise (2021-2023), the income tax will continue to be
levied at 15%.
(4) On December 3, 2020, the subsidiary Fangda Chengdu Technology obtained the certificate of high
tech enterprise jointly issued by the Department of Science and Technology of Sichuan Province, the
Department of Finance of Sichuan Province, the State Administration of Taxation and the Sichuan
Provincial Taxation Bureau. Within three years after obtaining the qualification of high tech enterprise
(2020-2022), the income tax will continue to be levied at 15%.
(5) The subsidiary Kechuangyuan Software is an enterprise located in Qianhai Shenzhen Hong Kong
Modern Service Industry Cooperation Zone. Its main business meets the conditions of Preferential
Catalogue of Enterprise Income Tax in Qianhai Shenzhen Hong Kong Modern Service Industry Cooperation Zone
(2021), and the income tax is levied at 15%.
(6) 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 (December 2019 to December 2022).
(9) On November 12, 2020, the subsidiary Fangda Shanghai Zhijian obtained the certificate of high
tech enterprise jointly issued by Shanghai Science and Technology Commission, Shanghai Finance Bureau and
74
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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%.
(8) On December 11, 2021, the subsidiary Fangda Yunzhu Co., Ltd. obtain ed the certificate of high
tech enterprise jointly issued by Shenzhen Science and Technology Innovation Commission, Shenzhen Finance
Bureau, State Administration of Taxation and Shenzhen Taxation Bureau. The certificate number is
GR202044202438. Within three years after obtaining the qualification of high tech enterprise (from 2020
to 2022), the income tax will be levied at 15%.
(9) According to the Notice on the Implementation of Preferential Tax Reduction and Exemption
Policies for Small and Micro Enterprises (CS [2019] No. 13) and the Announcement on the Implementation of
Preferential Income Tax Policies for Small and Micro Enterprises and Individual Industrial and Commercial
Households (Announcement No. 12 of the State Administration of Taxation of the Ministry of Finance in
2021) issued by the Ministry of Finance and the State Administration of Taxation, some companies belong
to small and low profit enterprises in 2021, and their income is subject to enterprise income tax in
accordance with the provisions of the above documents.
VII. Notes to the consolidated financial statements
1. Monetary capital
In RMB
Item Closing balance Opening balance
Inventory cash: 791.52 3,192.76
Bank deposits 589,739,116.72 910,763,535.83
Other monetary capital 441,575,201.58 376,797,030.73
Total 1,031,315,109.82 1,287,563,759.32
Including: total amount
44,695,303.07 43,244,091.68
deposited in overseas
The total amount of
money that has restrictions on
437,397,096.43 395,312,687.73
use due to mortgage, pledge or
freezing
Others:
(1) The use of restricted funds in bank deposits is RMB8,733,578.29,
RMB690,011.47 is deposited in real estate development supervision accounts,
RMB7,079,654.09 is deposited in special labor insurance accounts and migrant
workers’ wage accounts, and other security deposit accounts. The deposit is
RMB963,912.73; the restricted funds used in other currency funds are
RMB428,663,518.14, mainly for draft deposits, periodic guarantee deposits,
guarantee deposits for issuance of guarantees, 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.
(2) In the preparation of the cash flow state ment, the above-mentioned deposits and other restricted
deposits are not used as cash and cash equivalents.
(3) At the end of the period, the Company's total amount deposited abroad was RMB 44,695,303.07.
75
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
2. Transactional financial assets
In RMB
Item Closing balance Opening balance
Financial assets measured at fair
value with variations accounted 32,133,168.82 25,135,241.89
into current income account
Including: Investment of
32,133,168.82 25,135,241.89
financial products
Total 32,133,168.82 25,135,241.89
3. Derivative financial assets
In RMB
Item Closing balance Opening balance
Futures contracts 310,325.00
Forward foreign exchange contract 1,768,884.99 759,262.62
Total 1,768,884.99 1,069,587.62
4. Notes receivable
(1) Classification of notes receivable
In RMB
Item Closing balance Opening balance
Bank acceptance 10,149,296.82 32,759,446.43
Commercial acceptance 147,046,234.44 133,618,433.58
Total 157,195,531.26 166,377,880.01
In RMB
Closing balance Opening balance
Remaining book Bad debt Remaining book Bad debt
Type value provision Book value provision Book
Proport Provisi value Proport Provisi value
Amount Amount Amount Amount
ion on rate ion on rate
Inclu
ding:
Notes
receiva
ble
with
provisi
159,888 2,693,1 157,195 168,962 2,584,7 166,377
on for 100.00% 1.68% 100.00% 1.53%
,645.58 14.32 ,531.26 ,589.90 09.89 ,880.01
bad
debts
by
portfol
io
Inclu
ding:
Bank
10,149, 10,149, 32,759, 32,759,
accepta 6.35% 0.00 0.00% 19.39%
296.82 296.82 446.43 446.43
nce
76
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Commerc 136,203 80.61% 2,584,7 1.90% 133,618
ial 149,739 2,693,1 147,046 ,143.47 09.89 ,433.58
93.65% 1.80%
accepta ,348.76 14.32 ,234.44
nce
159,888 2,693,1 157,195 168,962 2,584,7 166,377
Total 100.00% 1.68% 100.00% 1.53%
,645.58 14.32 ,531.26 ,589.90 09.89 ,880.01
Provision for bad debts by combination: trade acceptance
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Commercial acceptance 149,739,348.76 2,693,114.32 1.80%
Total 149,739,348.76 2,693,114.32
Provision for bad debts by combination: bank acceptance
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Bank acceptance 10,149,296.82 0.00 0.00%
Total 10,149,296.82 0.00
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) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Opening Closing
Type Written-back
balance Provision Canceled Others balance
or recovered
Commercial
2,584,709.89 108,404.43 2,693,114.32
acceptance
Total 2,584,709.89 108,404.43 2,693,114.32
Including significant recovery or reversal:
□ Applicable Inapplicable
(3) 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 15,724,516.20
Commercial acceptance 19,312,032.12
Total 35,036,548.32
(4) Notes transferred to accounts receivable due to default of the issue at the end of
period
In RMB
77
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Amount transferred to accounts receivable at the
Item
end of the period
Commercial acceptance 1,500,000.00
Total 1,500,000.00
5. Account receivable
(1) Account receivable disclosed by categories
In RMB
Closing balance Opening balance
Remaining book Bad debt Remaining book Bad debt
Type value provision Book value provision Book
Proport Provisi value Proport Provisi value
Amount Amount Amount Amount
ion on rate ion on rate
Account
receiva
ble for
which
bad 83,718, 78,221, 5,497,6 83,718, 78,221, 5,497,6
11.61% 93.43% 11.18% 93.43%
debt 640.10 018.60 21.50 640.09 018.60 21.49
provisi
on is
made by
group
Includi
ng:
1.
54,873, 54,873, 54,873, 54,873,
Custome 7.61% 100.00% 0.00 7.32% 100.00% 0.00
223.21 223.21 223.21 223.21
r 1
2.
4,388,3 4,388,3 4,388,3 4,388,3
Custome 0.61% 100.00% 0.00 0.59% 100.00% 0.00
38.91 38.91 38.91 38.91
r 2
3.
13,461, 13,461, 13,461, 13,461,
Custome 1.87% 100.00% 0.00 1.80% 100.00% 0.00
834.96 834.96 834.96 834.96
r 3
4.
5,996,3 2,998,1 2,998,1 5,996,3 2,998,1 2,998,1
Custome 0.83% 50.00% 0.80% 50.00%
82.91 91.46 91.45 82.91 91.46 91.45
r 4
5.
4,998,8 2,499,4 2,499,4 4,998,8 2,499,4 2,499,4
Custome 0.69% 50.00% 0.67% 50.00%
60.11 30.06 30.04 60.10 30.06 30.04
r 5
Account
receiva
ble for
which
bad 637,479 87,335, 550,143 664,994 114,038 550,956
88.39% 13.70% 88.82% 17.15%
debt ,622.48 675.31 ,947.17 ,519.44 ,316.73 ,202.71
provisi
on is
made by
group
Includi
78
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
ng:
1.
Portfol
io 1:
Enginee 403,584 73,771, 329,812 414,989 101,816 313,172
55.96% 18.28% 55.43% 24.53%
ring ,043.08 340.16 ,702.92 ,471.61 ,476.32 ,995.29
operati
ons
section
2.
Portfol
io 2:
Real
146,169 7,760,2 138,408 153,920 7,774,6 146,146
estate 20.27% 5.31% 20.56% 5.05%
,177.61 22.96 ,954.65 ,735.18 60.29 ,074.89
busines
s
payment
s
3.
Portfol
io 3:
87,726, 5,804,1 81,922, 96,084, 4,447,1 91,637,
Other 12.16% 6.62% 12.83% 4.63%
401.79 12.19 289.60 312.65 80.12 132.53
busines
s
models
721,198 165,556 555,641 748,713 192,259 556,453
Total 100.00% 22.96% 100.00% 25.68%
,262.58 ,693.91 ,568.67 ,159.53 ,335.33 ,824.20
Separate bad debt provision: separate provision
In RMB
Closing balance
Name Remaining book Bad debt
Provision rate Reason
value provision
1.
Customer credit status deteriorates
Customer 54,873,223.21 54,873,223.21 100.00%
and is hard to recover
1
2.
Customer credit status deteriorates
Customer 4,388,338.91 4,388,338.91 100.00%
and is hard to recover
2
3.
Customer credit status deteriorates
Customer 13,461,834.96 13,461,834.96 100.00%
and is hard to recover
3
4.
Customer 5,996,382.91 2,998,191.46 50.00% Customer credit status deteriorates
4
5.
Customer 4,998,860.10 2,499,430.06 50.00% Customer credit status deteriorates
5
Total 83,718,640.09 78,221,018.60
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 220,474,180.55 4,319,222.59 1.96%
79
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
1-2 years 41,032,911.21 2,322,462.77 5.66%
2-3 years 42,356,249.56 5,404,657.44 12.76%
3-4 years 42,573,870.31 8,412,596.78 19.76%
4-5 years 6,746,007.84 2,911,576.97 43.16%
Over 5 years 50,400,823.61 50,400,823.61 100.00%
Total 403,584,043.08 73,771,340.16
Group recognition basis:
See 9. Financial Tools in V. Important Accounting Policies and Accounting Estimates for the recognition
criteria and instructions for withdrawing bad debt reserves by portfolio
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 99,633,253.30 996,332.52 1.00%
1-2 years 2,164,982.12 108,249.11 5.00%
2-3 years 0.00 0.00
3-4 years 22,273,070.00 3,340,960.50 15.00%
4-5 years 0.00 0.00
Over 5 years 22,097,872.19 3,314,680.83 15.00%
Total 146,169,177.61 7,760,222.96
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 45,943,857.36 335,390.16 0.73%
1-2 years 16,376,359.56 343,903.54 2.10%
2-3 years 13,477,800.33 1,134,830.79 8.42%
3-4 years 10,287,961.94 2,549,356.97 24.78%
4-5 years 1,476,639.38 1,276,847.51 86.47%
Over 5 years 163,783.22 163,783.22 100.00%
Total 87,726,401.79 5,804,112.19
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) 366,483,937.52
1-2 years 59,574,252.89
2-3 years 55,834,049.89
Over 3 years 239,306,022.28
3-4 years 84,348,177.60
80
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
4-5 years 15,048,208.33
Over 5 years 139,909,636.35
Total 721,198,262.58
Accounts receivable with significant single amount aged over three years in curtain wall engineering
business:
Accounts receivable of over Balance of provision for bad Whether there is a risk
Customer Reason of the age
3 years debts of recovery
Customer credit status
Customer 1 54,873,223.21 54,873,223.21 Yes
deteriorates
Customer credit status
Customer 2 13,461,834.96 13,461,834.96 deteriorates Yes
Customer 3 12,363,915.90 2,443,109.78 Due to long settlement period No
Customer credit status
Customer 4 26,002,530.93 26,002,530.93 Yes
deteriorates
Customer credit status
Customer 5 10,242,182.99 10,242,182.99 deteriorates Yes
(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- Closing balance
Cancele Other
Provision back or
d s
recovered
Separate bad debt
78,221,018.60 78,221,018.60
provision
Provision for bad
debts by 114,038,316.73 -26,702,641.42 87,335,675.31
combination
Total 192,259,335.33 -26,702,641.42 165,556,693.91
(3) Balance of top 5 accounts receivable at the end of the period
In RMB
Balance of bad debt
Closing balance of
Entity Percentage (%) provision at the end of
accounts receivable
the period
Customer 1 58,315,441.48 8.08% 6,843,334.47
Customer 2 54,873,223.21 7.61% 54,873,223.21
Customer 3 35,387,305.12 4.91% 2,364,048.70
Customer 4 31,500,000.00 4.37% 2,912,732.66
Customer 5 26,002,530.93 3.60% 26,002,530.93
Total 206,078,500.74 28.57%
(4) Receivables derecognized due to transfer of financial assets
Gain or loss related to the de-
Customer Way of transfer De-recognized amount recognition
Customer 1 Factoring 1,842,845.54 -88,941.28
81
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Customer 2 Factoring 10,391,923.85 -413,846.66
Customer 3 Factoring 1,500,000.00 -81,221.92
Customer 4 Factoring 9,195,976.52 -365,259.08
Customer 5 Factoring 440,708.24 -17,601.40
Customer 6 Factoring 2,654,800.00 -109,481.44
Customer 7 Factoring 7,941,333.15 -255,027.30
Customer 8 Factoring 2,900,000.00 -115,504.58
Customer 9 Factoring 5,000,000.00 -65,625.00
Total 41,867,587.30 -1,512,508.66
(5) Amount of assets and liabilities formed by transferring accounts receivable and
continuing involvement
Customer Transfer method of assets Amount of assets formed by Amount of liabilities formed by
continued involvement continued involvement
Customer 1 Recourse factoring 600,000.00 600,000.00
Customer 2 Credit discount 1,637,287.44 1,637,287.44
Customer 3 Credit discount 2,781,343.60 2,781,343.60
Total 8,381,343.60 8,381,343.60
6. Receivable financing
In RMB
Item Closing balance Opening balance
Notes receivable 19,031,714.87 4,263,500.00
Total 19,031,714.87 4,263,500.00
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 ages of prepayments
In RMB
Closing balance Opening balance
Age
Amount Proportion Amount Proportion
Less than 1 year 16,267,306.91 69.97% 18,013,831.62 78.24%
1-2 years 2,291,097.29 9.85% 805,756.05 3.50%
2-3 years 1,645,036.13 7.08% 2,467,980.33 10.72%
82
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Over 3 years 3,046,943.63 13.10% 1,734,917.03 7.54%
Total 23,250,383.96 23,022,485.03
Explanation of non-settlement of significant prepayments with an accounting age of more than 1 year:
At the end of the period, there is no significant prepayment with an aging of more than one year.
(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 RMB 8,467,290.80,
accounting for 36.42% of the total prepayments at the end of the period.
8. Other receivables
In RMB
Item Closing balance Opening balance
Other receivables 179,462,261.72 165,093,406.23
Total 179,462,261.72 165,093,406.23
(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 109,414,911.76 106,427,141.89
Construction borrowing and
38,107,332.07 31,857,018.14
advanced payment
Staff borrowing and petty cash 2,566,722.51 1,828,554.92
VAT refund receivable 952,964.52 4,903,075.25
Debt by Luo Huichi 12,992,291.48 12,992,291.48
Others 38,991,541.49 29,074,979.66
Total 203,025,763.83 187,083,061.34
2) Method of bad debt provision
In RMB
First stage Second stage Third stage
Expected credit
Expected credit
Bad debt provision Expected credit loss for the entire Total
loss for the entire
losses in the next duration (credit
duration (no credit
12 months impairment has
impairment)
occurred)
Balance on January
2,216,451.18 573,868.37 19,199,335.56 21,989,655.11
1, 2022
Balance on January
1, 2022 in the
current period
83
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Provision 967,450.66 1,427,328.15 -820,931.81 1,573,847.00
Balance on June 30,
3,183,901.84 2,001,196.52 18,378,403.75 23,563,502.11
2022
Changes in book balances with significant changes in the current period
□ Applicable Inapplicable
Account age
In RMB
Age Closing balance
Within 1 year (inclusive) 91,760,188.97
1-2 years 1,036,118.15
2-3 years 1,666,012.83
Over 3 years 108,563,443.88
3-4 years 70,447,840.30
4-5 years 20,164,999.65
Over 5 years 17,950,603.93
Total 203,025,763.83
3) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Opening Written- Closing
Type
balance Provision back or Canceled Others balance
recovered
Other receivables
and bad debt 21,989,655.11 1,573,847.00 23,563,502.11
provision
Total 21,989,655.11 1,573,847.00 23,563,502.11
4) Balance of top 5 other receivables at the end of the period
In RMB
Balance of
bad debt
Closing
Entity By nature Age Percentage (%) provision at
balance
the end of
the period
Margin and
Shenzhen Yikang Real 3-4
current 70,062,675.83 34.51% 1,401,253.52
Estate Co. Ltd. years
account
Bangshen Electronics 4-5
Deposit 20,000,000.00 9.85% 400,000.00
(Shenzhen) Co., Ltd. years
Shenzhen Rijiasheng 1-2
Arrears 18,708,945.57 9.22% 1,870,894.56
Trading Co., Ltd years
Over 5
Luo Huichi Arrears 12,992,291.48 6.40% 12,992,291.48
years
84
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Shenzhen Henggang Dakang 3-4
Deposit 8,000,000.00 3.94% 160,000.00
Co., Ltd. years
Total 129,763,912.88 63.91% 16,824,439.56
9. Inventories
(1) Classification of inventories
Classified by nature:
In RMB
Closing balance Opening balance
Provision Provision
for for
inventory inventory
depreciati depreciati
Item Remaining book on or Remaining book on or
Book value Book value
value contract value contract
performanc performanc
e cost e cost
impairment impairment
provision provision
Development
216,522,002.08 216,522,002.08 214,159,331.62 214,159,331.62
cost
Development
201,840,310.24 201,840,310.24 215,045,857.53 215,045,857.53
products
Contract
performance 100,377,843.11 100,377,843.11 120,770,607.88 120,770,607.88
costs
Raw
145,821,074.44 145,821,074.44 87,964,749.50 87,964,749.50
materials
Product in
22,899,157.31 22,899,157.31 71,066,791.34 71,066,791.34
process
Finished
goods in 11,413,803.15 11,413,803.15 7,514,662.13 7,514,662.13
stock
Low price
28,990.66 28,990.66 190,365.86 190,365.86
consumable
OEM
16,276,453.42 16,276,453.42 16,568,559.12 16,568,559.12
materials
Materials in
531,179.86 531,179.86
transit
Goods
2,901,720.28 2,901,720.28
delivered
Total 718,612,534.55 718,612,534.55 733,280,924.98 733,280,924.98
Development cost and capitalization rate of its interest are disclosed as follows:
In RMB
Estima Transf Other Increa Accumu Includ
Estima Openin Closin
Starti ted erred decrea se lative ing: Capita
Projec ted g g
ng total to se in (devel capita capita l
t name finish balanc balanc
time invest develo this opment lized lized source
time e e
ment pment period cost) intere intere
85
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
produc in st st for
t in this the
this period curren
period t
period
Dakang
Bank
Villag
loan
e Decemb Decemb 3,600, 199,02 199,61
595,33 and
Projec er 1, er 31, 000,00 3,484. 8,822.
8.13 self-
t in 2024 2030 0.00 28 41
owned
Shenzh
fund
en
Fangda Bank
Bangsh loan
Decemb Decemb 870,00 15,135 16,903
en 1,767, and
er 1, er 31, 0,000. ,847.3 ,179.6
Indust 332.33 self-
2023 2025 00 4 7
ry owned
Park fund
4,470, 214,15 216,52
2,362,
Total 000,00 9,331. 2,002.
670.46
0.00 62 08
Disclose the main project information of "Development Products" according to the following format:
In RMB
Includin
g:
capitali
Accumulative
Project Completio Opening Incr Closing zed
Decrease capitalized
name n time balance ease balance interest
interest
for the
current
period
Phase I of 29
Fangda December 62,930,177.37 10,703,725.24 52,226,452.13 2,009,651.62
Town 2016
Nanchang
April 27,
Fangda 152,115,680.16 2,501,822.05 149,613,858.11 5,502,309.51
2021
Center
Total 215,045,857.53 13,205,547.29 201,840,310.24 7,511,961.13
(2) Capitalization rate of interest in the closing inventory balance
As at June 30, 2022, the amount of the capitalization of borrowing costs in the balance of the end -of-
period inventory was RMB7,511,961.13.
10. Contract assets
In RMB
Closing balance Opening balance
Item Remaining Impairment Remaining Impairment
Book value Book value
book value provision book value provision
Unsettled 2,088,604,05 168,444,310. 1,920,159,74 1,840,664,58 144,079,042. 1,696,585,54
project 1.45 53 0.92 6.03 31 3.72
86
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
funds
Unexpired
91,989,366.0 83,279,452.4 63,551,208.3 10,907,883.7 52,643,324.5
warranty 8,709,913.62
2 0 2 6 6
deposit
Sales funds
with
47,400,395.4 43,615,655.9 34,103,742.1 33,718,804.8
conditional 3,784,739.50 384,937.31
2 2 6 5
collection
right
2,227,993,81 180,938,963. 2,047,054,84 1,938,319,53 155,371,863. 1,782,947,67
Total
2.89 65 9.24 6.51 38 3.13
The amount and reasons for major changes in the book value of contract assets during the current period:
In RMB
Item Change Reason
This is mainly due to the unsettled
project funds with conditional collection
Unsettled project funds 223,574,197.20 rights arising from the revenue recognized
in the project contract during the
reporting period
Mainly due to the increase of projects in
the warranty period after the completion
Unexpired warranty deposit 30,636,127.84
of the project contract during the
reporting period
Total 254,210,325.04 ——
If the provision for impairment 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
impairment:
□ Applicable Inapplicable
Provision made for bad debts of contract assets in this period
In RMB
Transferred back Written off in
Item Provision in the current the current Reason
period period
Unsettled project
24,365,268.22
funds
Unexpired warranty
-2,197,970.14
deposit
Sales funds with
conditional collection 3,399,802.19
right
Total 25,567,100.27 ——
11. Other current assets
In RMB
Item Closing balance Opening balance
Tax to be input 143,671,906.98 145,743,267.08
Overpayment and prepayment of
84,983,087.01 98,092,258.00
income tax
Other prepaid taxes 21,991,159.61 8,520,856.65
87
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Deferred discount expense 12,118,850.83 12,428,625.55
Debt investment 103,488,888.90
Others 2,834,002.43 1,499.01
Total 369,087,895.76 264,786,506.29
12. Long-term share equity investment
In RMB
Change (+,-)
Invest Balanc
ment e of
gain Other impair
Cash ment
Invest Openin and miscel Closin
Increa Decrea divide Impair provis
ed g book loss laneou Other g book
sed sed nd or ment ion at
entity value recogn s equity Others value
invest invest profit provis the
ized income change
ment ment announ ion end of
using adjust
ced the
the ment
equity period
method
1. Joint venture
2. Associate
Gansha
ng
2,365, 3,789. 2,369,
Joint
399.31 03 188.34
Invest
ment
Jiangx
i
Busine
ss
Innova
tive
Proper
52,853 - 52,816
ty
,546.8 36,763 ,783.6
Joint
3 .18 5
Stock
(Jiang
xi
Busine
ss
Inovat
ion)
55,218 - 55,185
Subtot
,946.1 32,974 ,971.9
al
4 .15 9
55,218 - 55,185
Total ,946.1 32,974 ,971.9
4 .15 9
13. Investment in other equity tools
In RMB
88
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Item Closing balance Opening balance
Unlisted equity instrument
14,180,652.65 14,180,652.65
investment
Total 14,180,652.65 14,180,652.65
Sub-disclosure of non-tradable equity instrument investment in the current period
In RMB
Reason for
Amount of measurement
other at fair Reason for
Dividend
comprehens value with transfer
recogniz
Total ive income variations of other
Item ed in Total loss
gain transferre accounted miscellane
the
d to into ous into
period
retained current income
earnings income
account
Shenyang Fangda Semi-conductor
Lighting Co., Ltd. 14,381,923.02
(hereinafter Shenyang Fangda)
Shenzhen Huihai Yirong
3,779,277.52
Internet Service Co., Ltd.
14. Other non-current financial assets
In RMB
Item Closing balance Opening balance
Financial assets measured at fair
value with variations accounted 7,504,750.83 7,525,408.24
into current income account
Total 7,504,750.83 7,525,408.24
15. Investment real estates
(1) Investment real estate measured at costs
Applicable □ Inapplicable
In RMB
Item Houses & buildings Total
I. Book value
1. Opening balance 17,388,824.39 17,388,824.39
2. Increase in this period
3. Decrease in this period
4. Closing balance 17,388,824.39 17,388,824.39
II. Accumulative depreciation and
amortization
1. Opening balance 7,253,011.36 7,253,011.36
89
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
2. Increase in this period 224,704.02 224,704.02
(1) Provision or
224,704.02 224,704.02
amortization
3. Decrease in this period
4. Closing balance 7,477,715.38 7,477,715.38
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 9,911,109.01 9,911,109.01
2. Opening book value 10,135,813.03 10,135,813.03
(2) Investment real estate measured at fair value
Applicable □ Inapplicable
In RMB
Item Houses & buildings Total
I. Opening balance 5,755,216,580.10 5,755,216,580.10
II. Change in this period -1,867,274.91 -1,867,274.91
Add: external purchase 0.00 0.00
Less: other transfer-out 2,935,603.51 2,935,603.51
Change in fair value 1,068,328.60 1,068,328.60
III. Closing balance 5,753,349,305.19 5,753,349,305.19
Disclosure of investment real estate measured at fair value by projects
In RMB
Rental
income in Opening Closing Change in Reason for
Project Completio Building
Location 2 the fair fair fair the change
name n time area (m )
report value value value and report
period
Commercia
11
l podium 17,144,11 1,344,899 1,344,899
Shenzhen October 22,551.58 0.00%
of Fangda 4.39 ,032.00 ,032.00
2017
Town
Building
29
1# of 43,210,57 3,640,588 3,640,588
Shenzhen December 76,623.31 0.00%
Fangda 0.72 ,848.63 ,848.63
2018
Town
28
Fangda 8,968,746 329,471,9 329,471,9
Shenzhen December 17,432.38 0.00%
Building .78 82.00 82.00
2002
Nanchang
December 5,165,210 436,493,8 434,626,5
Fangda Nanchang 37,725.82 -0.43%
10, 2020 .22 38.47 63.56
Center
90
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
154,333.0 74,488,64 5,751,453 5,749,586
Total -0.03%
9 2.11 ,701.10 ,426.19
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
Nanchang Fangda Center project 4# The acceptance record is being
17,345,966.44
building commercial handled
Other note
① The fair value of some real estate in Fangda Town is RMB1,958,894,944.14, which has been mortgaged to
the loan of China Construction Bank Shenzhen OCT sub branch. The loan has not expired and has not been
released; The fair value of some real estate in fangdacheng is RMB1,344,899,032.00, which has been
mortgaged to the loan of Shenzhen Dongbin branch of Huaxia Bank. The loan has not expired and has not
been released.
② Other transfers out in the current period are due to the needs of business development. The Company
has transferred some houses of Nanchang Fangda Center from external rental to self use.
16. Fixed assets
In RMB
Item Closing balance Opening balance
Fixed assets 681,823,427.57 663,414,297.61
Total 681,823,427.57 663,414,297.61
(1) Fixed assets
In RMB
Transportati Electronics
Houses & Mechanical PV power
Item on and other Total
buildings equipment plants
facilities devices
I. Original
book value:
1. Opening 610,564,471. 120,638,873. 21,390,928.6 50,870,105.7 129,596,434. 933,060,813.
balance 12 28 9 7 84 70
2. Increase
25,222,586.3 10,418,231.8 37,184,495.3
in this 11,273.76 1,532,403.47
2 4 9
period
10,371,081.6 10,418,231.8 21,663,681.5
(1) Purchase 874,368.07
0 4 1
(2)
Transfer-in 14,851,504.7 15,509,540.1
658,035.40
of 2 2
construction
91
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
in progress
(3) Other
11,273.76 11,273.76
increases
3. Decrease
in this 2,800,131.20 1,139,518.96 2,663,142.67 1,227,229.26 7,830,022.09
period
(1) Disposal
or 2,800,131.20 1,139,518.96 2,663,142.67 1,227,229.26 7,830,022.09
retirement
4. Closing 632,986,926. 129,917,586. 18,739,059.7 51,175,279.9 129,596,434. 962,415,287.
balance 24 16 8 8 84 00
II.
Accumulative
depreciation
1. Opening 96,553,528.9 91,086,675.4 16,472,796.0 30,931,249.9 34,505,796.2 269,550,046.
balance 3 4 3 7 2 59
2. Increase
15,005,394.5
in this 7,632,627.09 2,552,916.67 363,347.31 1,382,283.41 3,074,220.06
4
period
(1) 14,999,615.9
7,632,627.09 2,552,916.67 357,568.71 1,382,283.41 3,074,220.06
Provision 4
(2) Other
5,778.60 5,778.60
increases
3. Decrease
in this 258,186.41 329,705.18 2,396,828.40 1,075,331.21 4,060,051.20
period
(1) Disposal
or 258,186.41 329,705.18 2,396,828.40 1,075,331.21 4,060,051.20
retirement
4. Closing 103,927,969. 93,309,886.9 14,439,314.9 31,238,202.1 37,580,016.2 280,495,389.
balance 61 3 4 7 8 93
III.
Impairment
provision
1. Opening
79,843.20 16,626.30 96,469.50
balance
2. Increase
in this
period
3. Decrease
in this
period
4. Closing
79,843.20 16,626.30 96,469.50
balance
IV. Book
value
1. Closing 529,058,956. 36,527,856.0 19,920,451.5 92,016,418.5 681,823,427.
4,299,744.84
book value 63 3 1 6 57
2. Opening 514,010,942. 29,472,354.6 19,922,229.5 95,090,638.6 663,414,297.
4,918,132.66
book value 19 4 0 2 61
92
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
(2) Fixed assets without ownership certificate
In RMB
Item Book value Reason
Yuehai Office Building C 502 115,455.69 Historical reasons
17. Construction in process
In RMB
Item Closing balance Opening balance
Construction in process 2,839,581.23 11,642,444.21
Total 2,839,581.23 11,642,444.21
(1) Construction in progress
In RMB
Closing balance Opening balance
Item Impairmen
Remaining Impairment Remaining book
Book value t Book value
book value provision value
provision
Construction
and
decoration
of self use
11,642,444.21 11,642,444.21
part of
Nanchang
Fangda
Center
Decoration
of the self-
used part of
Fangda Group 2,839,581.23 2,839,581.23
East China
Construction
Base
Total 2,839,581.23 2,839,581.23 11,642,444.21 11,642,444.21
(2) Changes in major construction in process in this period
In RMB
Amoun Propo Inclu
t rtion Accum ding:
Other
Incre trans of ulati capit Inter
decre
Openi ase fer- Closi accum Proje ve alize est Capit
Proje ase
Budge ng in in to ng ulati ct capit d capit al
ct in
t balan this fixed balan ve progr alize inter aliza sourc
name this
ce perio asset ce engin ess d est tion e
perio
d s in eerin inter for rate
d
this g est the
perio inves curre
93
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
d tment nt
in perio
the d
budge
t
Const
ructi
on
and
decor
ation
of
self 13,00 11,64 3,090 14,73
100.0 Compl Other
use 0,000 2,444 ,056. 2,500 0.00
0% eted s
part .00 .21 34 .55
of
Nanch
ang
Fangd
a
Cente
r
Decor
ation
of
the
self-
used
part
In
of 6,080 2,839 2,839
46.70 const Other
Fangd ,000. ,581. ,581.
% ructi s
a 00 23 23
on
Group
East
China
Const
ructi
on
Base
19,08 11,64 5,929 14,73 2,839
Total 0,000 2,444 ,637. 2,500 0.00 ,581.
.00 .21 57 .55 23
18. Use right assets
In RMB
Transportation
Item Houses & buildings Total
facilities
I. Book value
1. Opening balance 37,075,290.17 1,319,251.12 38,394,541.29
2. Increase in this
569,163.12 569,163.12
period
3. Decrease in this
587,910.79 587,910.79
period
94
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
4. Closing balance 37,056,542.50 1,319,251.12 38,375,793.62
II. Accumulative
depreciation
1. Opening balance 6,344,621.50 609,063.25 6,953,684.75
2. Increase in this
6,310,611.40 304,531.62 6,615,143.02
period
(1) Provision 6,310,611.40 304,531.62 6,615,143.02
3. Decrease in this
195,970.20 195,970.20
period
(1) Disposal 195,970.20 195,970.20
4. Closing balance 12,459,262.70 913,594.87 13,372,857.57
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
24,597,279.80 405,656.25 25,002,936.05
value
2. Opening book
30,730,668.67 710,187.87 31,440,856.54
value
19. Intangible assets
(1) Intangible assets
In RMB
Land using
Item Patent Software Total
right
I. Book value
1. Opening balance 80,404,737.13 8,989,350.94 21,627,838.43 111,021,926.50
2. Increase in this period 968.87 808,447.54 809,416.41
(1) Purchase 968.87 808,447.54 809,416.41
3. Decrease in this period
4. Closing balance 80,404,737.13 8,990,319.81 22,436,285.97 111,831,342.91
II. Accumulative amortization
1. Opening balance 17,370,871.00 8,652,629.93 9,798,712.74 35,822,213.67
2. Increase in this period 1,147,643.30 108,462.92 972,444.15 2,228,550.37
(1) Provision 1,147,643.30 108,462.92 972,444.15 2,228,550.37
3. Decrease in this period
4. Closing balance 18,518,514.30 8,761,092.85 10,771,156.89 38,050,764.04
95
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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 61,886,222.83 229,226.96 11,665,129.08 73,780,578.87
2. Opening book value 63,033,866.13 336,721.01 11,829,125.69 75,199,712.83
20. Long-term amortizable expenses
In RMB
Amortized
Increase in Other Closing
Item Opening balance amount in this
this period decrease balance
period
Xuanfeng Chayuan village
and Zhuyuan village land 1,028,527.10 28,050.78 1,000,476.32
transfer compensation
Reconstruction project
231,427.38 57,856.80 173,570.58
of sample room
Membership fee 193,749.80 118,749.82 74,999.98
Waterproofing works for
472,886.09 79,291.98 393,594.11
employee dormitories
Management consulting
178,466.08 32,448.36 146,017.72
service fee
Warehouse addition and
151,376.19 30,275.22 121,100.97
renovation project
Dahuaxin Dongguan
Songshanhu rubber area
180,428.08 90,214.08 90,214.00
interlayer
transformation
Factory wall painting
and rolling shutter door 172,368.00 22,982.40 149,385.60
engineering
Property insurance
237,369.99 84,625.00 126,487.93 195,507.06
premium
Plant ground
319,593.71 43,581.00 276,012.71
reconstruction project
High voltage network
access fee of East China 794,750.23 153,822.66 640,927.57
base
Others 1,427,827.57 1,614,472.08 794,315.49 2,247,984.16
Total 5,388,770.22 1,699,097.08 1,578,076.52 5,509,790.78
21. Differed income tax assets and differed income tax liabilities
(1) Non-deducted deferred income tax assets
In RMB
Item Closing balance Opening balance
96
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Deductible Deductible
Deferred income tax Deferred income tax
temporary temporary
assets assets
difference difference
Assets impairment
285,680,229.38 52,322,012.68 257,631,149.84 48,121,014.85
provision
Unrealized profit
of internal 298,049,521.84 58,293,392.21 281,712,399.14 55,842,834.37
transactions
Deductible loss 224,697,948.29 49,538,340.07 194,235,656.90 44,060,479.20
Credit impairment
197,414,358.26 32,230,462.86 216,539,086.13 34,918,828.89
provision
Unrealizable gross
106,053,789.85 26,513,447.43 114,199,793.34 27,967,001.62
profit
Anticipated
3,052,064.92 457,809.74 6,347,809.40 1,161,300.00
liabilities
Deferred earning 2,753,977.39 429,893.08 3,674,964.26 551,244.65
Change in fair
2,907,950.88 436,192.63 1,079,130.19 161,869.53
value
Accrued expenses
12,967,806.54 2,473,278.36 8,914,405.11 1,339,159.89
and others
Total 1,133,577,647.35 222,694,829.06 1,084,334,394.31 214,123,733.00
(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
4,200,169,583.79 1,049,852,190.57 4,199,023,889.76 1,049,649,013.70
value
Acquire premium to
1,535,605.47 383,901.37 1,535,605.47 383,901.37
form inventory
Estimated gross
margin when Fangda
Town records
income, but does 18,022,638.21 4,505,659.55 31,539,658.09 7,884,914.52
not reach the
taxable income
level
Rental income 35,512,252.70 8,878,063.17 34,856,116.84 8,714,029.21
Total 4,255,240,080.17 1,063,619,814.66 4,266,955,270.16 1,066,631,858.80
(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 deferred income tax
assets and
Item assets or liabilities at the assets or
liabilities at the
liabilities after beginning of the liabilities after
end of the period
offsetting period offsetting
Deferred income tax
222,694,829.06 214,123,733.00
assets
97
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Deferred income tax
1,063,619,814.66 1,066,631,858.80
liabilities
(4) Details of unrecognized deferred income tax assets
In RMB
Item Closing balance Opening balance
Deductible temporary difference 78,842.21 554,677.54
Deductible loss 10,817,244.13 10,345,101.90
Total 10,896,086.34 10,899,779.44
(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 1,233,589.22 1,233,589.22
2023 4,575,983.46 4,575,983.46
2024 1,276,235.76 1,276,235.76
2025 800,020.76 213,129.83
2026 2,355,213.17 3,046,163.63
2027 576,201.76
Total 10,817,244.13 10,345,101.90
22. 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
Contract 94,328,082.7 10,050,259.9 84,277,822.7 72,288,658.3 64,335,928.8
7,952,729.45
assets 8 9 9 2 7
Prepaid
house and 27,094,308.2 27,094,308.2 35,693,402.7 35,693,402.7
equipment 8 8 7 7
amount
Certificate 311,792,353. 311,792,353. 306,738,886. 306,738,886.
of deposit 94 94 82 82
Others 2,004,460.50 2,004,460.50 1,088,296.93 1,088,296.93
435,219,205. 10,050,259.9 425,168,945. 415,809,244. 407,856,515.
Total 7,952,729.45
50 9 51 84 39
23. Short-term borrowings
(1) Classification of short-term borrowings
In RMB
98
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Item Closing balance Opening balance
Loan by pledge 74,536,621.23 58,450,232.49
Guarantee loan 92,099,305.57 10,013,291.67
Credit borrow 310,052,500.00 302,354,444.46
Discount borrowing of acceptance
1,146,202,710.82 916,656,430.03
bills
Total 1,622,891,137.62 1,287,474,398.65
24. Derivative financial liabilities
In RMB
Item Closing balance Opening balance
Futures contracts 1,821,775.00
Forward foreign exchange contract 18,916.89 11,871.20
Total 1,840,691.89 11,871.20
25. Notes payable
In RMB
Type Closing balance Opening balance
Commercial acceptance 39,025,946.98 185,747,490.66
Bank acceptance 690,667,133.63 663,697,808.43
Total 729,693,080.61 849,445,299.09
The total amount of payable bills that have matured but not been paid at the end of the period is RMB0.00.
26. Account payable
(1) Account payable
In RMB
Item Closing balance Opening balance
Account repayable and engineering
912,872,170.52 942,689,466.48
repayable
Construction payable 16,885,608.55 58,406,046.64
Payable installation and
351,215,766.97 327,879,727.83
implementation fees
Others 16,655,565.98 14,148,245.02
Total 1,297,629,112.02 1,343,123,485.97
(2) Significant payables aging more than 1 year
In RMB
Item Closing balance Reason
Supplier 1 38,366,194.94 Not mature
Total 38,366,194.94
99
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
27. Prepayment received
(1) Prepayment received
In RMB
Item Closing balance Opening balance
Rental 2,850,390.49 1,280,482.93
Total 2,850,390.49 1,280,482.93
28. Contract liabilities
In RMB
Item Closing balance Opening balance
Project funds collected in
162,258,562.39 172,696,504.61
advance
Real estate sales payment 5,775,179.83 4,082,802.11
Material loan 2,975,016.99 2,485,989.04
Others 1,148,805.06 921,581.39
Total 172,157,564.27 180,186,877.15
Collection of the top five real estate projects with pre-sale amount:
There are no pre-sale projects in this period.
29. Employees' wage payable
(1) Employees' wage payable
In RMB
Closing
Item Opening balance Increase Decrease
balance
1. Short-term remuneration 68,789,749.61 178,747,991.87 215,310,335.94 32,227,405.54
2. Retirement pension
program-defined 154,394.34 9,363,619.34 8,995,150.59 522,863.09
contribution plan
3. Dismiss compensation 126,870.00 662,484.73 789,354.73 0.00
Total 69,071,013.95 188,774,095.94 225,094,841.26 32,750,268.63
(2) Short-term remuneration
In RMB
Closing
Item Opening balance Increase Decrease
balance
1. Wage, bonus, allowance
67,487,743.92 164,892,728.43 201,378,714.00 31,001,758.35
and subsidies
2. Employee welfare 373,264.20 5,001,251.84 5,248,673.90 125,842.14
3. Social insurance 47,164.22 3,910,607.97 3,804,603.29 153,168.90
Including: medical 41,419.12 3,353,494.02 3,260,889.53 134,023.61
100
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
insurance
Labor injury
3,048.20 205,068.29 201,086.05 7,030.44
insurance
Breeding insurance 2,696.90 352,045.66 342,627.71 12,114.85
4. Housing fund 77,242.00 4,457,037.80 4,437,750.80 96,529.00
5. Labor union budget and
569,442.50 448,456.19 440,593.95 577,304.74
staff education fund
6. Short-term paid leave 234,892.77 37,909.64 0.00 272,802.41
Total 68,789,749.61 178,747,991.87 215,310,335.94 32,227,405.54
(3) Defined contribution plan
In RMB
Item Opening balance Increase Decrease Closing balance
1. Basic pension 150,523.04 9,089,101.84 8,730,490.89 509,133.99
2. Unemployment
3,871.30 274,517.50 264,659.70 13,729.10
insurance
Total 154,394.34 9,363,619.34 8,995,150.59 522,863.09
30. Taxes payable
In RMB
Item Closing balance Opening balance
VAT 11,325,684.35 7,130,265.98
Enterprise income tax 28,934,824.98 32,790,801.61
Personal income tax 970,987.26 1,525,425.02
City maintenance and construction
1,216,772.33 1,153,514.56
tax
Land using tax 406,279.41 257,316.97
Property tax 5,388,161.43 1,133,817.11
Education surtax 609,411.60 582,762.56
Local education surtax 289,361.93 246,199.28
Land VAT 15,092,807.51 22,186,857.45
Others 336,431.50 273,686.68
Total 64,570,722.30 67,280,647.22
31. Other payables
In RMB
Item Closing balance Opening balance
Other payables 114,272,250.22 126,903,098.08
Total 114,272,250.22 126,903,098.08
101
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
(1) Other payables
1) Other payables presented by nature
In RMB
Item Closing balance Opening balance
Performance and quality deposit 29,529,457.19 47,863,587.46
Deposit 42,256,266.91 20,376,442.13
Reserved expense 1,395,266.85 4,048,028.82
Others 41,091,259.27 54,615,039.67
Total 114,272,250.22 126,903,098.08
(2) Significant payables aging more than 1 year
In RMB
Item Closing balance Reason
Shenzhen Yikang Real Estate Co. Payment paid as agreed in the
25,062,852.92
Ltd. contract
Total 25,062,852.92
32. Non-current liabilities due within 1 year
In RMB
Item Closing balance Opening balance
Long-term loans due within 1 year 71,874,849.32 65,634,120.55
Lease liabilities due within one
10,047,645.41 12,784,437.21
year
Total 81,922,494.73 78,418,557.76
33. Other current liabilities
In RMB
Item Closing balance Opening balance
Unterminated notes receivable 35,539,366.27 25,877,995.14
Substituted money on VAT 23,006,763.25 22,220,366.63
Total 58,546,129.52 48,098,361.77
34. Long-term borrowings
(1) Classification of long-term borrowings
In RMB
Item Closing balance Opening balance
Guarantee, mortgage and pledge
1,399,134,120.55
loan 1,370,374,849.32
102
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Less: Long-term loans due within
65,634,120.55
1 year 71,874,849.32
Total 1,298,500,000.00 1,333,500,000.00
Notes to classification of long-term borrowings:
The above guarantee, mortgage and pledge loans are the guarantee guarantee provided by the Company and its subsidiary Fangda
Property and the mortgage guarantee provided by the subsidiary Fangda Property for some properties of Fangda Plaza, the 100%
equity of the subsidiary Fangda Property held by the Company and the rent receivable pledge of the leased properties of Fangd a
Property.
Other note, including interest rate range:
The interest rate period of long-term loan is 3%-7%.
35. Lease liabilities
In RMB
Item Closing balance Opening balance
Rental payments for houses,
15,837,405.86 19,152,093.31
buildings and means of transport
Total 15,837,405.86 19,152,093.31
36. Long-term payables
In RMB
Item Closing balance Opening balance
Long-term payable 190,640,219.18 183,640,219.18
Total 190,640,219.18 183,640,219.18
(1) Long term accounts payable listed by nature
In RMB
Item Closing balance Opening balance
Disposal of equity repurchase 190,640,219.18 183,640,219.18
37. Anticipated liabilities
In RMB
Item Closing balance Opening balance Reason
Pending lawsuit 2,091,286.00
Product quality warranty 3,052,064.92 4,256,523.40
Total 3,052,064.92 6,347,809.40
103
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
38. Deferred earning
In RMB
Item Opening balance Increase Decrease Closing balance Reason
Government See the
9,566,525.60 0.00 283,322.58 9,283,203.02
subsidy following table
Total 9,566,525.60 0.00 283,322.58 9,283,203.02
Items involving government subsidies:
In RMB
Amount
include
Other misc. Costs
Amount d in Other Related to
Liabiliti Opening gains offset Closing
of new non- chang assets/earni
es balance recorded in in the balance
subsidy operati e ng
this period period
ng
revenue
Railway
transport
screen
door
controlli
ng system
Assets-
and 39,845.21 9,452.16 30,393.05
related
informati
on
transmiss
ion
technolog
y
Major
investmen
t project
prize
from
Industry
and Trade Assets-
1,509,524.30 28,571.40 1,480,952.90
Developme related
nt
Division
of
Dongguan
Finance
Bureau
Distribut
ed PV
power
generatio
n project
Assets-
subsidy 343,750.25 12,499.98 331,250.27
related
sponsored
by
Dongguan
Reform
and
104
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Developme
nt
Commissio
n
Subsidize
Assets-
d land 169,827.59 1,862.82 167,964.77
related
transfer
Special
subsidy
for
industria
l
Assets-
transform 766,666.65 40,000.02 726,666.63
related
ation,
upgrading
and
developme
nt
Enterpris
e
informati
onization
subsidy
project
Assets-
of 372,000.00 24,000.00 348,000.00
related
Shenzhen
Small and
Medium
Enterpris
e Service
Agency
National
Industry
Revitaliz
ation and
Assets-
Technolog 5,377,983.50 153,864.30 5,224,119.20
related
y
Renovatio
n Project
fund
Energy
saving
and
environme
ntal
protectio
n metal
curtain Assets-
986,928.10 13,071.90 973,856.20
wall related
productio
n
technolog
y
transform
ation
project
Total 9,566,525.60 283,322.58 9,283,203.02
105
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
39. Capital share
In RMB
Change (+,-)
Opening balance Issued Transferre Closing balance
Bonus Subtota
new d from Others
shares l
shares reserves
Total of
capital 1,073,874,227.00 1,073,874,227.00
shares
40. Capital reserve
In RMB
Item Opening balance Increase Decrease Closing balance
Capital premium (share
10,005,491.05 10,005,491.05
capital premium)
Other capital reserves 1,454,097.35 1,454,097.35
Total 11,459,588.40 11,459,588.40
41. Other miscellaneous income
In RMB
Amount occurred in the current period
Less: Less:
amount amount
written written
After-tax
into into
After-tax amount
Opening Amount other other Less: Closing
Item amount attribute
balance before gains and gains and Income balance
attribute d to
income transferr transferr tax
d to the minority
tax ed into ed into expenses
parent sharehold
gain/loss gain/loss
ers
in in
previous previous
terms terms
I. Other
comprehen
sive
income
that will - -
not be 14,565,71 14,565,71
subsequen 9.78 9.78
tly
reclassif
ied into
profit
106
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
and loss
Fair
value
change of
- -
investmen
14,565,71 14,565,71
t in
9.78 9.78
other
equity
tools
2. Other
misc.
incomes
that will - - -
49,891,59 - 49,441,26
be re- 609,135.2 171,209.1 450,330.2 22,494.68
1.56 10,090.52 1.29
classifie 9 7 7
d into
gain and
loss
Cash
- - -
flow 926,186.6 - -
1,141,394 171,209.1 960,094.8
hedge 2 10,090.52 33,908.21
.52 7 3
reserve
Trans
lation
differenc - -
532,259.2 509,764.5
e of 1,391,190 22,494.68 881,425.9
3 5
foreign .47 2
exchange
statement
Investmen
t real
estate 50,356,59 50,356,59
measured 5.41 5.41
at fair
value
Other
- - -
miscellan 35,325,87 - 34,875,54
609,135.2 171,209.1 450,330.2 22,494.68
eous 1.78 10,090.52 1.51
9 7 7
income
42. Surplus reserves
In RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
79,324,940.43 79,324,940.43
reserves
Total 79,324,940.43 79,324,940.43
107
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
43. Retained profit
In RMB
Item Current period Last period
Adjustment on retained profit of previous
4,324,055,259.33 4,215,005,541.52
period
Total of retained profit at beginning of
year adjusted (+ for increase, - for 2,521,701.04
decrease)
Retained profit adjusted at beginning of
4,324,055,259.33 4,217,527,242.56
year
Plus: Net profit attributable to owners of
112,685,273.77 111,488,701.33
the parent
Common share dividend payable 53,693,711.35
Adjustment to consolidation of
24,107,813.58
entities under common control
Closing retained profit 4,383,046,821.75 4,304,908,130.31
44. Operational revenue and costs
In RMB
Amount occurred in the current period Occurred in previous period
Item
Income Cost Income Cost
Main business 1,523,656,283.61 1,238,697,976.76 1,500,250,618.47 1,201,118,172.57
Other businesses 89,407,031.69 20,817,865.84 68,528,216.51 7,523,630.61
Total 1,613,063,315.30 1,259,515,842.60 1,568,778,834.98 1,208,641,803.18
Income information:
In RMB
Contract Segment 2 - Segment 3 - Segment 5 -
Segment 1- Segment 4 -
classificat rail transit real estate other Total
curtain wall new energy
ion division segment segments
Type of 1,150,768,372. 300,269,751.2 144,893,896.0 8,971,603.9
8,159,691.65 1,613,063,315.30
product 43 4 6 2
Including:
Curtain
wall system 1,150,768,372.
1,150,768,372.43
and 43
materials
Subway
300,269,751.2
screen door 300,269,751.24
4
and service
Real estate
144,893,896.0
lease and 144,893,896.06
6
sales
PV power
generation 8,159,691.65 8,159,691.65
products
8,971,603.9
Others 8,971,603.92
2
108
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
1,150,768,372. 300,269,751.2 144,893,896.0 8,971,603.9
Total 8,159,691.65 1,613,063,315.30
43 4 6 2
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:
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 RMB7,584,712,999.45, of which
RMB2,254,431,606.27 is expected to be recognized in 2022 H2, and RMB4,021,981,724.01 is expected to be
recognized in 2023, RMB1,308,299,669.17 is expected to be recognized in 2024 and beyond.
Top-5 projects in terms of income received and recognized in the reporting period:
In RMB
No. Project name Balanace
1 Fangda Town 96,524,719.40
2 Nanchang Fangda Center 8,715,726.75
45. Taxes and surcharges
In RMB
Amount occurred in the current
Item Occurred in previous period
period
City maintenance and construction
2,999,118.26 3,078,129.75
tax
Education surtax 1,950,119.60 1,915,966.95
Property tax 6,877,755.11 2,864,691.90
Land using tax 661,851.40 751,644.13
Vehicle usage tax 14,640.00 51,320.40
Stamp tax 941,023.02 1,249,671.01
Land VAT 9,521,953.79 25,705,049.49
Others 237,493.38 237,220.25
Total 23,203,954.56 35,853,693.88
46. Sales expense
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Labor costs 11,286,857.24 10,473,510.26
Sales agency fee 2,383,695.88 7,400,124.58
109
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Entertainment expense 1,534,727.49 2,041,529.62
Travel expense 440,012.56 793,223.58
Advertisement and promotion fee 589,409.30 716,856.99
Amortization of right of use
462,611.74 1,297,595.54
assets and lease fees
Others 6,598,791.57 2,712,074.24
Total 23,296,105.78 25,434,914.81
47. Management expense
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Labor costs 51,258,947.78 42,525,730.63
Agencies 2,977,450.48 4,747,575.30
Depreciation and amortization 6,784,107.02 4,238,728.47
Office expense 4,110,000.28 3,742,123.03
Entertainment expense 2,079,903.87 2,159,401.56
Amortization of right of use
2,678,867.12 1,171,537.38
assets and lease fees
Lawsuit 239,447.70 2,650,332.80
Travel expense 846,221.42 870,897.82
Others 3,218,305.90 7,396,126.94
Total 74,193,251.57 69,502,453.93
48. R&D cost
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Labor costs 43,761,777.28 47,607,487.83
Material costs 22,539,028.06 23,898,889.12
Agencies 4,002,025.54 3,027,319.72
Depreciation costs 530,096.72 788,799.38
Amortization of intangible assets 495,249.97 507,608.85
Others 1,481,133.60 2,815,489.96
Total 72,809,311.17 78,645,594.86
49. Financial expense
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Interest expense 50,244,714.46 46,707,567.90
Less: interest capitalization 3,070,467.85
Less: discount government
308,700.00
subsidies
Less: Interest income 19,918,179.96 6,976,161.44
Acceptant discount 11,494,770.87 5,472,503.74
110
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Exchange gain/loss -3,678,984.41 1,703,136.52
Commission charges and others 1,796,161.92 3,000,733.43
Total 39,629,782.88 46,837,312.30
50. Other gains
In RMB
Amount occurred in the
Source Occurred in previous period
current period
Government subsidies related to deferred
283,322.58 206,250.66
income (related to assets)
Government subsidies related to deferred
95,060.00
income (related to income)
Government subsidies directly included
in current profits and losses (related 5,945,520.73 5,791,459.18
to income)
Other items related to daily activities
540,064.44 514,288.22
and included in other income
Total 6,768,907.75 6,607,058.06
51. Investment income
In RMB
Amount occurred in the
Item Occurred in previous period
current period
Gains from long-term equity investment measured
-32,974.15 -452,893.65
by equity
Investment income from trading financial assets 2,382,310.79 2,953,049.83
Financial assets derecognised as a result of
-1,859,057.85 -3,032,899.72
amortized cost
Interest income from debt investment during the
3,454,345.45
holding period
Others 651,054.19
Total 4,595,678.43 -532,743.54
Others:
During the reporting period, the investment income generated by financial management was RMB2,382,310.79.
52. Income from fair value fluctuation
In RMB
Source of income from fluctuation Amount occurred in the current
Occurred in previous period
of fair value period
Transactional financial assets 133,168.82
Investment real estate measured
1,068,328.60
at fair value
Other non-current financial
-20,657.41 172,829.74
assets
Total 1,180,840.01 172,829.74
111
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
53. Credit impairment loss
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Bad debt loss of other
-1,581,252.49 1,139,984.05
receivables
Bad debt loss of accounts
26,597,550.83 18,713,432.01
receivable and notes receivable
Total 25,016,298.34 19,853,416.06
54. Assets impairment loss
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Contract asset impairment loss -27,659,612.75 3,466,913.89
Total -27,659,612.75 3,466,913.89
55. Assets disposal gains
In RMB
Amount occurred in the
Source Occurred in previous period
current period
Gain and loss from disposal of fixed
-815,581.50 -2,027,304.03
assets ("-" for loss)
56. Non-business income
In RMB
Amount accounted into
Amount occurred in the Occurred in previous
Item the current accidental
current period period
gain/loss
Penalty income 122,506.66 195,216.06 122,506.66
Payable account not able
115,354.80 539,817.35 115,354.80
to be paid
Compensation received 4,887.00 36,000.00 4,887.00
Others 203,638.36 430,073.05 203,638.36
Total 446,386.82 1,201,106.46 446,386.82
57. Non-business expenses
In RMB
Amount accounted
Amount occurred in the Occurred in previous
Item into the current
current period period
accidental gain/loss
112
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Donation 2,338,000.00 3,127,302.00 2,338,000.00
Loss from retirement os
damaged non-current 159,921.17 101,810.29 159,921.17
assets
Penalty and overdue fine 79,324.94 54,643.82 79,324.94
Others 755.20 196,618.40 755.20
Total 2,578,001.31 3,480,374.51 2,578,001.31
58. Income tax expenses
(1) Details about income tax expense
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Income tax expenses in this
24,417,052.77 9,913,372.73
period
Deferred income tax expenses -11,411,931.03 4,023,120.93
Total 13,005,121.74 13,936,493.66
(2) Adjustment process of accounting profit and income tax expense
In RMB
Item Amount occurred in the current period
Total profit 127,369,982.54
Income tax expenses calculated based on the legal (or
31,842,495.63
applicable) tax rates
Impacts of different tax rates applicable for some
-9,525,227.89
subsidiaries
Impacts of income tax before adjustment -313,266.86
Impact of non-taxable income 0.00
Impacts of non-deductible cost, expense and loss 638,681.52
Impacts of using deductible loss of unrecognized deferred
-582,391.98
income tax assets
Deductible temporary difference and deductible loss of
119,682.98
unrecognized deferred income tax assets
Profit and loss of associates and joint ventures calculated
8,243.54
using the equity method
Taxation impact of R&D expense and (presented with “-”) -9,183,095.20
Income tax expenses 13,005,121.74
59. Other miscellaneous income
See Note VII 41.
113
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
60. Notes to the cash flow statement
(1) Other cash inflow related to operation
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Interest income 1,798,697.05 3,844,284.17
Subsidy income 3,443,499.94 2,962,771.94
Retrieving of bidding deposits 28,957,397.39 29,885,356.39
Other operating accounts 67,415,733.82 55,055,405.87
Total 101,615,328.20 91,747,818.37
(2) Other cash paid related to operation
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Oocket expenses 18,401,123.38 21,856,501.46
Bidding deposit paid 39,026,573.21 15,899,280.00
Net draft deposit net paid 181,744,397.40 144,928,637.13
Other trades 54,833,967.58 9,718,831.22
Total 294,006,061.57 192,403,249.81
(3) Other cash paid related to investment activities
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Other cash paid for investment 0.00 1,323,355.15
Total 0.00 1,323,355.15
(4) Other cash paid related to financing activities
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Discounted loan deposits such as bills of
604,311,403.85 228,210,000.00
exchange and due repayment
Loan pledged by certificate of deposit 300,000,000.00
Repayment of principal and interest of
5,285,394.85 1,150,479.34
lease liabilities
Total 609,596,798.70 529,360,479.34
114
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
61. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB
Amount of the Amount of the
Supplementary information
Current Term Previous Term
1. Net profit adjusted to cash flow related to business
operations:
Net profit 114,364,860.80 115,187,470.49
Plus: Asset impairment provision 2,643,314.41 -23,320,329.95
Fixed asset depreciation, gas and petrol depreciation,
15,224,319.96 12,694,795.70
production goods depreciation
Depreciation of right to use assets 6,615,143.02 2,441,097.81
Amortization of intangible assets 2,228,550.37 2,110,624.27
Amortization of long-term amortizable expenses 1,578,076.52 1,095,936.19
Loss from disposal of fixed assets, intangible assets,
815,581.50 2,027,304.03
and other long-term assets (“-“ for gains)
Loss from fixed asset discard (“-“ for gains) 159,921.17 101,810.29
Loss from fair value fluctuation (“-“ for gains) -1,180,840.01 -172,829.74
Financial expenses (“-“ for gains) 61,739,485.33 50,128,451.89
Investment losses (“-“ for gains) -6,454,736.28 -2,500,156.18
Decrease of deferred income tax asset (“-“ for
-8,571,096.06 -108,813.53
increase)
Increase of deferred income tax asset (“-“ for
-3,012,044.14 1,701,067.08
increase)
Decrease of inventory (“-“ for increase) 14,668,390.43 63,137,528.73
Decrease of operational receivable items (“-“ for
-293,658,104.04 25,896,769.11
increase)
Increase of operational receivable items (“-“ for
-177,019,400.45 -851,232,377.90
decrease)
Others -36,722,215.57 99,887,106.71
Cash flow generated by business operations, net -306,580,793.04 -500,924,545.00
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 593,918,013.39 587,299,086.12
Less: Initial balance of cash 892,251,071.59 1,028,386,529.73
Add: Ending balance of cash equivalents
Less: Ending balance of cash equivalents
Net increase in cash and cash equivalents -298,333,058.20 -441,087,443.61
115
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
(2) Composition of cash and cash equivalents
In RMB
Item Closing balance Opening balance
I. Cash 593,918,013.39 892,251,071.59
Including: Cash in stock 791.52 3,192.76
Bank savings can be used at any
581,005,538.43 875,884,674.10
time
Other monetary capital can be
12,911,683.44 16,363,204.73
used at any time
III. Balance of cash and cash
593,918,013.39 892,251,071.59
equivalents at end of term
62. Assets with restricted ownership or use rights
In RMB
Item Closing book value Reason
Monetary capital 437,397,096.43 Various deposits
Bills endorsed or discounted but not
Notes receivable
34,787,478.67 yet due
Fixed assets 45,126,026.61 Loan by pledge
Account receivable 46,114,021.14 Loan by pledge
Investment real estate 3,303,793,976.13 Loan by pledge
Other non-current assets 311,792,353.94 Loan by pledge
100% stake in Fangda Property
Equity pledge
200,000,000.00 Development held by the Company
Total 4,379,010,952.92
63. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Closing foreign currency
Item Exchange rate Closing RMB balance
balance
Monetary capital 94,992,309.10
Including: USD 3,157,223.94 6.711400 21,189,392.75
Euro 1,319,925.99 7.008400 9,250,569.31
HK Dollar 48,857,539.37 0.855190 41,782,479.09
INR 23,962,527.45 0.085014 2,037,150.31
Vietnamese
203,260,060.00 0.000288 58,623.11
currency
SGD 1,553,934.86 4.817000 7,485,304.22
AUD 2,858,119.04 4.614500 13,188,790.31
Account receivable 13,062,024.95
Including: USD 1,423,544.35 6.711400 9,553,975.55
116
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
AUD 582,762.90 4.614500 2,689,159.40
SGD 170,000.00 4.817000 818,890.00
Contract assets 90,661,307.08
Including: USD 8,884,839.82 6.711400 59,629,713.97
HK Dollar 186,368.80 0.855190 159,380.73
INR 124,460,153.97 0.085014 10,580,855.53
AUD 192,013.05 4.614500 886,044.22
Euro 2,768,864.88 7.008400 19,405,312.62
Other receivables 4,437,591.53
Including: USD 539,815.34 6.711400 3,622,916.67
HK Dollar 413,291.20 0.855190 353,442.50
INR 5,121,133.93 0.085014 435,368.08
AUD 5,605.00 4.614500 25,864.27
Account payable 8,325,030.55
Including: USD 1,178,768.59 6.711400 7,911,187.51
AUD 89,683.18 4.614500 413,843.03
Other payables 461,799.47
Including: USD 66,453.63 6.711400 445,996.89
HK Dollar 100.00 0.855190 85.52
Vietnamese
54,494,719.00 0.000288 15,717.06
currency
(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
64. Hedging
Hedging items and related tools, qualitative and quantitative information about hedging risks:
Type Hedged item Hedging tools Hedged risk
Aluminum material Aluminum The price of raw materials has risen, leading to
purchase forward futures an increase in expected transaction procurement
transaction contract costs;
Cash flow
Forward
hedging Forward foreign
foreign The depreciation of foreign currency leads to
exchange
exchange the decrease of actual collection
transaction
contract
65. Government subsidy
(1) Government subsidy profiles
In RMB
Amount accounted
Type Amount Item into the current
gain/loss
Major investment project prize from Industry and Trade Deferred
1,480,952.90 28,571.40
Development Division of Dongguan Finance Bureau earning
Distributed PV power generation project subsidy Deferred
331,250.27 12,499.98
sponsored by Dongguan Reform and Development Commission earning
117
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Special subsidy for industrial transformation, upgrading Deferred
726,666.63 40,000.02
and development earning
National Industry Revitalization and Technology Deferred
5,224,119.20 153,864.30
Renovation Project fund earning
Enterprise informationization subsidy project of Deferred
348,000.00 24,000.00
Shenzhen Small and Medium Enterprise Servi ce Agency earning
Energy saving and environmental protection metal curtain Deferred
973,856.20 13,071.90
wall production technology transformation project earning
Other
VAT rebated into revenue 2,176,755.66 2,176,755.66
gains
Other
Employment subsidy 953,585.98 953,585.98
gains
Financial
Discount subsidy 308,700.00 308,700.00
expenses
Other
Dongguan R&D subsidy 751,800.00 751,800.00
gains
Funding received from Shenzhen Science and Technology
Other
Innovation Commission for the cultivation of high-tech 1,000,000.00 1,000,000.00
gains
enterprises
Subsidy for Multiplier Support Scheme for National High-
Other
tech Enterprises of Nanshan District Science and 100,000.00 100,000.00
gains
Technology Innovation Bureau of Shenzhen
Other
Hong Kong SAR epidemic subsidy 142,597.63 142,597.63
gains
Shanghai Songjiang District Enterprise Technology Center Other
200,000.00 200,000.00
subsidy gains
Other
gains/def
Others 637,314.55 450,271.71
erred
gains
Total 15,355,599.02 6,355,718.58
VIII. Change to Consolidation Scope
1. Others
The scope of merger is not changed in the period.
IX. Equity in Other Entities
1. Interests in subsidiaries
(1) Group Composition
Shareholding
Place of Registere percentage Obtainin
Company Business
business d address Indirec g method
Direct
t
Designing, manufacturing,
Incorpor
Fangda Jianke Shenzhen Shenzhen and installation of 98.39% 1.61%
ation
curtain walls
Fangda Zhiyuan Production, processing Incorpor
Shenzhen Shenzhen 83.10%
Technology and installation of ation
118
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
subway screen doors
Prodution and sales of
new-type materialsm
Fangda Jiangxi New Incorpor
Nanchang Nanchang composite materials and 75.00% 25.00%
Material ation
production of curtain
walls
Real estate development Incorpor
Fangda Property Shenzhen Shenzhen 99.00% 1.00%
and operation ation
Design and construction Incorpor
Fangda New Energy Shenzhen Shenzhen 99.00% 1.00%
of PV power plants ation
Trusted processing of
Fangda Chengdu Incorpor
Chengdu Chengdu building curtain wall 100.00%
Technology ation
materials
Virgin Virgin Incorpor
Shihui International Investment 100.00%
Islands Islands ation
Fangda Dongguan New Installation and sales of Incorpor
Dongguan Dongguan 100.00%
Material building curtain walls ation
Fangda Property Incorpor
Shenzhen Shenzhen Property management 100.00%
Management ation
Fangda Jiangxi Real estate development Incorpor
Nanchang Nanchang 100.00%
Property Development and operation ation
Fangda Luxin New Design and construction Incorpor
Pingxiang Pingxiang 100.00%
Energy of PV power plants ation
Fangda Xinjian New Design and construction Incorpor
Nanchang Nanchang 100.00%
Energy of PV power plants ation
Fangda Dongguan New Design and construction Incorpor
Dongguan Dongguan 100.00%
Energy of PV power plants ation
Kechuangyuan Incorpor
Shenzhen Shenzhen Software development 83.10%
Software ation
Fangda Zhichuang Incorpor
Hong Kong Hong Kong Metro screen door 83.10%
Technology Hong Kong ation
Fangda Hongjun Incorpor
Shenzhen Shenzhen Investment 98.00% 2.00%
Investment ation
Designing, manufacturing,
Incorpor
Fangda Australia Australia Australia and installation of 100.00%
ation
curtain walls
Design, development and
Incorpor
Fangda Yunzhi Shenzhen Shenzhen sales of cloud rail 100.00%
ation
transport equipment
Building decoration and
Chengda Curtain Wall Incorpor
Chengdu Chengdu other construction 100.00%
Company ation
industry
Designing, manufacturing,
Fangda Southeast Incorpor
Vietnam Vietnam and installation of 100.00%
Asia ation
curtain walls
Intelligent technology,
Fangda Shanghai Incorpor
Shanghai Shanghai new energy, automated 30.00% 70.00%
Zhijian ation
technology
Construction technology,
intelligent technology,
Fangda Shanghai automation technology, Incorpor
Shanghai Shanghai 100.00%
Jianzhi design, production and ation
installation of building
curtain walls
Zhongrong Litai Shenzhen Shenzhen Business service 55.00% Purchase
Project investment and Incorpor
Fangda Investment Shenzhen Shenzhen 99.00% 0.52%
investment consultancy ation
119
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Fangda Lifu Project investment and Incorpor
Shenzhen Shenzhen 52.00%
Investment investment consultancy ation
Fangda Xunfu Project investment and Incorpor
Shenzhen Shenzhen 100.00%
Investment investment consultancy ation
Design, sale and
Fangda Jianke Hong Incorpor
Hong Kong Hong Kong installation of building 100.00%
Kong ation
curtain wall
Consolid
Inspection, technical
ation of
service and consultation
entities
Fangda Yunzhu Shenzhen Shenzhen of building safety and 100.00%
under
building energy saving
common
system
control
Consolid
Inspection, technical
ation of
service and consultation
Fangda Yunzhu entities
Shenzhen Shenzhen of building safety and 100.00%
Testing under
building energy saving
common
system
control
Production, processing
General Metro Incorpor
Singapore Singapore and installation of 83.10%
Technology Co., Ltd ation
subway screen doors
Production, processing
Fangda Zhiyuan Incorpor
Wuhan Wuhan and installation of 83.10%
Technology Wuhan ation
subway screen doors
Production, processing
Fangda Zhiyuan Incorpor
Nanchang Nanchang and installation of 83.10%
Technology Nanchang ation
subway screen doors
Production, processing
Fangda Zhichuang Incorpor
Dongguan Dongguan and installation of 83.10%
Technology Dongguan ation
subway screen doors
(2) Major non wholly-owned subsidiaries
In RMB
Profit and loss Dividend to be Interest balance of
Shareholding of
attributed to distributed to minority
Company minority
minority minority shareholders in the
shareholders
shareholders shareholders end of the period
Zhongrong Litai 45.00% -24,352.61 48,385,412.95
Fangda Zhiyuan
5.96% 1,702,533.65 19,624,097.73
Technology
Others:
In May 2021l the Company's subsidiaries Fangda Construction Technology Co., Ltd. and Jiangxi Fangda New
Material Co., Ltd. transfer 10.9375% of the equity of Fangda Zhiyuan Technology Co., Ltd. because the
Company cannot unconditionally avoid performing its contractual obligations by delivering cash or other
financial assets, the Company recognizes the contractual obligations as financial liabilities, and
accordingly does not recognize minority shareholders' equity.
(3) Financial highlights of major non wholly owned subsidiaries
In RMB
Compa Closing balance Opening balance
120
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
ny Non- Non-
Non- Curre Non- Curre
Total curre Total Total curre Total
Curre curre nt Curre curre nt
of nt liabi of nt liabi
nt nt liabi nt nt liabi
asset liabi litie asset liabi litie
asset asset litie asset asset litie
s litie s s litie s
s s s s
s s
Zhong 208,0 208,4 100,6 100,9 207,5 208,0 100,1 100,4
409,5 305,2 455,3 363,9
rong 44,28 53,86 25,48 30,72 92,40 47,71 06,53 70,46
73.80 42.20 15.59 29.52
Litai 9.05 2.85 0.76 2.96 2.32 7.91 1.59 1.11
Fangd
a
759,5 72,47 832,0 482,6 20,07 502,7 725,0 84,47 809,4 485,3 23,84 509,1
Zhiyu
51,31 5,038 26,35 88,72 4,242 62,96 06,36 0,444 76,80 29,72 7,519 77,24
an
4.56 .85 3.41 6.25 .51 8.76 1.40 .42 5.82 0.83 .22 0.05
Techn
ology
In RMB
Amount occurred in the current period Occurred in previous period
Business Business
Company Total of Total of
Net operation Net operation
Turnover misc. Turnover misc.
profit cash profit cash
incomes incomes
flows flows
Zhongrong - - 201,032.0
82,951.18 -8,017.93 11,157.19 11,157.19 16,306.16
Litai 54,116.91 54,116.91 8
Fangda
- -
Zhiyuan 300,269,7 28,566,00 28,963,81 267,687,0 48,286,95 47,707,03
105,649,9 122,774,7
Technolog 51.24 0.91 8.88 38.55 2.27 5.22
62.94 79.41
y
2. Interests in joint ventures or associates
(1) Financial summary of insignificant joint ventures and associates
In RMB
Closing balance/amount occurred Opening balance/amount occurred
in this period in previous period
Associate:
Total book value of investment 55,185,971.99 55,218,946.14
Total shareholding
Net profit -32,974.15 -452,893.65
--Total of misc. incomes -32,974.15 -452,893.65
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.
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 Compa ny's credit management department
121
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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 paymen t 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 determin es
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 inst rument 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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Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
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 prob ability, 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 bus iness 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’s receivables, accounts receivable from top 5 customers account for 28.57% of the
total accounts receivable (beginning of the period: 25.47%); among other receivables, other receivables
from top 5 customers account for 63.91% of the total other receivables (beginning of the period: 69.41%).
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 .
123
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
As of June 30, 2022, the maturity of the Company's financial liabilities is as follows:
Amount: in RMB10,000
June 30, 2022
Item
Less than 1 year Within 1-3 years Over 3 years Total
Short-term loans 162,289.11 162,289.11
Derivative financial liabilities 184.07 184.07
Notes payable 72,969.31 72,969.31
Account payable 123,914.67 5,650.10 198.14 129,762.91
Employees' wage payable 3,275.03 3,275.03
Other payables 7,455.22 639.31 3,332.69 11,427.23
Non-current liabilities due in 1
8,192.25 8,192.25
year
Other current liabilities 5,854.61 5,854.61
Long-term loans 21,150.00 108,700.00 129,850.00
Lease liabilities 1,583.18 0.56 1,583.74
Long-term payable 19,064.02 19,064.02
Total liabilities 384,134.27 48,086.61 112,231.39 544,452.28
Continued
December 31, 2021
Item Less than 1 year Within 1-3 Over 3 years Total
years
Short-term loans 128,747.44 128,747.44
Derivative financial 1.19 1.19
liabilities
Notes payable 84,944.53 84,944.53
Account payable 132,966.88 870.87 474.60 134,312.35
Employees' wage payable 6,907.10 6,907.10
Other payables 6,998.63 1,707.20 3,984.48 12,690.31
Non-current liabilities 7,841.86 7,841.86
due in 1 year
Other current 4,809.84 4,809.84
liabilities
Long-term loans - 24,650.00 108,700.00 133,350.00
Lease liabilities - 1,886.82 28.39 1,915.21
Long-term payable 18,364.02 18,364.02
Total liabilities 373,217.47 29,114.89 131,551.49 533,883.85
3. Market risk
(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
124
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Singapore currencies 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, 2022, the Company's foreign currency financial assets and liabilities at the end of
the period are listed in VII, item note 63 of consolidated financial statements and description of
foreign currency monetary items.
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) Exchange rate 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, 2022, if the loan interest rate calculated by floating interest rate increases or
decreases by 50 basis points while other risk variables remain unchanged, the net profit of the Company
in the current year will decrease or increase by RMB 6,256,900 (December 31, 2021: RMB6,829,400).
XI. Fair Value
1. Closing fair value of assets and liabilities measured at fair value
In RMB
Closing fair value
Item First level fair Second level fair Third level fair
Total
value value value
1. Continuous fair value
-- -- -- --
measurement
(I) Transactional
1,768,884.99 32,133,168.82 33,902,053.81
financial assets
1. Financial assets
measured at fair value
with variations 1,768,884.99 32,133,168.82 33,902,053.81
accounted into current
income account
(1) Derivative financial
1,768,884.99 1,768,884.99
assets
125
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
(2) Investment of
32,133,168.82 32,133,168.82
financial products
(2) Receivable financing 19,031,714.87 19,031,714.87
(3) Investment in other
14,180,652.65 14,180,652.65
equity tools
(4) Investment real
5,753,349,305.19 5,753,349,305.19
estate
1. Leased building 5,753,349,305.19 5,753,349,305.19
(5) Other non-current
7,504,750.83 7,504,750.83
financial assets
Total assets measured at
1,768,884.99 5,753,349,305.19 72,850,287.17 5,827,968,477.35
fair value continuously
(6) Transactional
1,840,691.89 1,840,691.89
financial liabilities
1. Derivative financial
1,840,691.89 1,840,691.89
liabilities
Total assets measured at
1,840,691.89 1,840,691.89
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.
126
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
5. Continuous third level fair value measurement items, adjustment information between
opening and closing book values and sensitivity analysis of unobservable parameters
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 financia l assets
measured at fair value between the first and second level or transfer in or out of the third level.
6. Switch between different levels, switch reason and switching time policy
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.
XII. Related Parties and Transactions
1. Parent of the Company
Share of the Voting power of
Registered Registered
Parent Business parent co. in the parent
address capital
the Company company
Shenzhen
Banglin
Industrial
Technologies Shenzhen RMB30 million 11.11% 11.11%
investment
Development
Co., Ltd.
Shengjiu Industrial
Hong Kong HKD10,000 10.11% 10.11%
Investment Ltd. investment
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
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
Ganshang Joint Investment Affiliates of the Company
127
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
4. Other associates
Other related parties Relationship with the Company
Jiangxi Business Innovative Property Joint Stock
Affiliates of the Company
Co., Ltd.
Gong Qing Cheng Shi Li He Investment Management Affiliated relationship with Shenzhen Banglin
Partnership Enterprise (limited partner) Technology Development Co., Ltd.
Shenyang Fangda Subsidiary in liquidation
Shenzhen Yikang Real Estate Co. Ltd. Controlled subsidiaries
Shenzhen Qijian Technology Co., Ltd. (Qijian
Common actual controller
Technology)
Shenzhen Mingjiu Investment Co., Ltd Common actual controller
Company with significant influence of actual
Shenzhen Yingxiang Investment Co., Ltd
controllers
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 Occurred in previous
Affiliated party Related transaction
current period period
Property service and
Qijian Technology 112,319.60 59,376.04
sales of goods
(2) Related leasing
The Company is the leasor:
In RMB
Category of asset for Rental recognized in the Rental recognized in the
Name of the leasee
lease period period
Qijian Technology Houses & buildings 434,285.70 482,580.65
(3) Related guarantees
The Company is the guarantor:
In RMB
Beneficiary party Amount guaranteed Start date Due date Completed or not
Fangda Jianke 500,000,000.00 July 27, 2021 June 1, 2023 No
Fangda Jianke 600,000,000.00 December 21, 2021 December 21, 2022 No
Fangda Jianke 240,000,000.00 March 9, 2022 March 2, 2023 No
Fangda Jianke 250,000,000.00 November 17, 2021 November 16, 2022 No
Fangda Jiangxi New
100,000,000.00 April 20, 2022 April 19, 2023 No
Material
128
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Fangda Jianke 150,000,000.00 May 23, 2022 May 7, 2024 No
Fangda Zhijian 70,000,000.00 June 1, 2022 June 15, 2024 No
Fangda Jianke 300,000,000.00 March 17, 2021 February 17, 2022 Yes
Fangda Jianke 300,000,000.00 January 29, 2021 January 28, 2022 No
Fangda Jianke 400,000,000.00 September 18, 2022 September 05, 2022 No
Fangda Jianke 300,000,000.00 August 18, 2021 August 17, 2022 No
Fangda Jianke 150,000,000.00 April 10, 2020 March 18, 2022 Yes
Fangda Jianke 480,000,000.00 December 17, 2021 December 16, 2022 No
Fangda Zhiyuan
400,000,000.00 July 7, 2021 July 6, 2022 No
Technology
Fangda Zhiyuan
150,000,000.00 March 9, 2022 March 2, 2023 No
Technology
Fangda Zhiyuan
150,000,000.00 March 31, 2021 February 17, 2022 Yes
Technology
Fangda Zhiyuan
200,000,000.00 January 29, 2021 January 28, 2022 No
Technology
Fangda Zhiyuan
150,000,000.00 September 28, 2021 September 02, 2022 No
Technology
Fangda Zhiyuan
100,000,000.00 April 10, 2020 March 18, 2022 Yes
Technology
Fangda Zhiyuan
100,000,000.00 May 23, 2022 May 7, 2024 No
Technology
Fangda Zhiyuan
50,000,000.00 August 12, 2021 August 7, 2022 No
Technology
Fangda Yunzhu 6,000,000.00 May 10, 2022 April 1, 2023 No
Kechuangyuan
10,000,000.00 September 30, 2021 September 30, 2022 No
Software
Fangda Jiangxi New
65,000,000.00 July 30, 2021 July 29, 2022 No
Material
Fangda Jiangxi New
100,000,000.00 May 26, 2021 April 12, 2022 Yes
Material
Fangda Property 1,350,000,000.00 February 25, 2020 February 24, 2030 No
Fangda Property 470,000,000.00 December 16, 2020 December 16, 2030 No
Fangda Zhijian 35,000,000.00 June 3, 2021 March 18, 2023 Yes
For details, please
refer to the
Fangda Jianke and
following
Fangda Zhiyuan 140,000,000.00 December 18, 2019 No
description of
Technology
related party
guarantee (2)
Note to related guarantees
The above-mentioned guarantees are all associated guarantees within interested entities of the Company.
① HSBC has a total credit of RMB 90 million to the Company, Fangda Jianke and Fangda Zhiyuan Technology
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 RMB140 million 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 Zhiyuan Technology 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.
129
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
(4) Remuneration of key management
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Directors, supervisors and senior
4,289,505.05 4,157,864.33
management
6. Receivable and payables due with related parties
(1) Receivable interest
In RMB
Closing balance Opening balance
Project name Affiliated party Remaining book Bad debt Remaining book Bad debt
value provision value provision
Account
Qijian Technology 4,403.43 44.03 4,194.54 41.95
receivable
Other
Shenyang Fangda 42,877.00 42,877.00 42,877.00 42,877.00
receivables
Other Ganshang Joint
3,791,089.25 75,821.79 3,791,089.25 56,487.23
receivables Investment
Shenzhen Yikang
Other
Real Estate Co. 70,062,675.83 1,401,253.52 70,062,675.83 1,043,933.87
receivables
Ltd.
(2) Receivable interest
In RMB
Closing balance of book Opening balance of book
Project name Affiliated party
value value
Shenzhen Yikang Real
Other payables 25,251,147.71 25,116,052.92
Estate Co. Ltd.
Other payables Qijian Technology 400.00 400.00
Ganshang Joint
Other payables 3,355.36 3,355.36
Investment
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
130
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
upon by both parties, and obtained independent development rights of the project. As of June 30, 2022,
Fangda Real Estate has paid a deposit of RMB20 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, 2022, Fangda Property has paid Party B and the project
company RMB50 million of security deposit, RMB20 million of service fee, RMB 61,937,200 of equity transfer
and RMB73,062,800 of other related payments.
(3) In May 2021, the subsidiaries Fangda Jianke and Fangda Jiangxi New Material transferred 10.9375%
of the total equity of Fangda Zhichuang Technology, with a transfer amount of RMB175 million. The
agreement also stipulates that if Fangda Zhiyuan Technology fails to start and complete the qualified
listing before May 31, 2025, the transferee has the right to require Fangda Jianke and Fangda Jiangxi New
Material to repurchase or transfer all or part of the equity of Fangda Zhiyuan Technology held by the
transferee.
As of June 30, 2022, the Company did not have other commitments that should be disclosed.
2. Contingencies
Significant contingencies on the balance sheet date:
(1) Contingent liabilities formed by material lawsuit or arbitration, and their influences on the
financial position
① 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 identification process.
② In September 2021, Fangda Jianke sued Qianhai Junlin Industrial Development (Shenzhen) Co., Ltd.
and Evergrande Real Estate Group (Shenzhen) Co., Ltd. for paying RMB7096421.00 yuan of project payment
and overdue interest, and claimed the priority of project payment. In August 2022, the court ruled that
Qianhai Junlin Industrial Development (Shenzhen) Co., Ltd. should pay the project payment of
RMB7,096,421.00 and the interest on overdue payment to Fangda Construction Technology Co., Ltd., and
supported the priority of the project payment, but did not support the shareholder Evergrande Real Estate
Group (Shenzhen) Co., Ltd. to bear the joint and several liabilities. As of the disclosure date of this
report, the judgment has not yet taken effect.
③ In October 2021, Fangda Jianke filed an arbitration with the arbitration court, requiring Zhuhai
R&F Real Estate Co., Ltd. to pay RMB11,806,353.97 of the project funds and overdue interest, and claimed
to enjoy the priority of the project funds. The Zhuhai International Arbitration Court accepted the case
on October 26, 2021, with the case number of zzz (2021) No. 698. In January 2022, Fangda Jianke reached a
131
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
settlement with Zhuhai R&F Real Estate Co., Ltd., signed a settlement agreement, and signed a housing
mortgage agreement with the third party Hengxin International Optical Industry Co., Ltd. after the
settlement, R&F paid RMB652,248.97 for the project; In May 2022, due to the failure of R&F and Hengxin to
perform the house arrival agreement, Fangda Jianke filed an arbitration again, demanding payment of the
remaining project funds and interests totaling RMB11,633,903.96. Zhuhai International Arbitration Court
accepted the case in May 2022, with the case number of ZZCZ (2022) No. 283, and the hearing was completed
on July 25, 2022. As of the disclosure date of this report, no ruling has been issued in this case.
④ In March 2022, Xiangheng Real Estate (Jinan) Co., Ltd. filed an arbitration with the Jinan
Arbitration Commission, requesting Fangda Jianke to bear the deduction, maintenance, rectification and
rework costs of RMB8,956,563.81 and lawyer's fees of RMB350,000.00 caused by the quality problems of the
supply and installation of aluminum alloy doors and windows, louvers and curtain walls of Jinan Kerry
comprehensive development project (phase I and II); In April 2022, Fangda Construction Technology Co.,
Ltd. filed an anti arbitration application, requiring Xiangheng Real Estate (Jinan) Co., Ltd. to pay a
total of RMB18,062,462.28 for the project funds and project expenses. As of the date of this report, the
two cases are under joint trial.
(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 payment of RMB10,242,182.99 to Fangda Jianke
within 10 days from the date of the verdict 川 0108 民初 1828 号. As of the date of this report, Fangda
Jianke has applied for execution and has not received the relevant payment.
On November 15, 2019, The people's Court of Chenghua District of Chengdu made a judgment (2019) 川
0108 民 初 428 号 that Sichuan Chuanta Hengyuan Industrial Co., Ltd. shall pay interest to the Company
within ten days from the date of the judgment (based on RMB6,013,841.23, from May 29, 2015 to the date of
payment; based on RMB841,876.32, from May 28, 2015 to the date of payment; based on RMB841,876.32, from
May 28, 2016 to the date of payment). The company has priority right to be paid for the discounted or
auctioned price of project C of Sichuan Tower Project (Television Culture Plaza) within the scope of
7,697,4#*@$ Yuan. As of the date of this report, Fangda Jian ke has not received relevant funds.
In November 2018, the Company's subsidiary, Fangda Jianke, sued Fujian Huapu Real Estate
Development Co., Ltd. (hereinafter referred to as Huapu company) to the People's Court of Taijiang
District, Fuzhou City for paying RMB13,810,243.67 of project payment and RMB373,380.16 of overdue
interest, totaling RMB14,183,623.83. Case No.: (2019) Min 0103 Min Chu No. 4282. In April 2020, Huapu
Company filed a counterclaim application to the court, requesting Fangda Jianke Company to pay a total of
12,746,000.00 yuan for the construction period and quality. In October 2021, the court ruled that Huapu
should pay the project payment of RMB10,683,952.00 and overdue payment interest to Fangda Jianke, of
which the project payment of RMB10,683,952.00 has the priority to be paid, and the judgment has come into
force. As of the date of this report, Huapu has been applied for bankruptcy liquidation, and Fangda
Jianke has declared priority creditor's rights.
In January 2022, Fangda Jianke filed a lawsuit against Chongqing Yongde Real Estate Co., Ltd. to
the People's Court of Jiangbei District, Chongqing to pay RMB28,760,911.55 for the project and the
interest on overdue payment, and claimed to enjoy the priority of the project payment. The case number is
(2022)渝 0105 民初 227 号. In May 2022, the court ruled that Chongqing Yongde Real Estate Co., Ltd. should
pay RMB28,760,911.55 of project funds and overdue payment interest to Fangda Jianke, and supported the
132
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
priority right of compensation of project funds. The judgment has taken effect. As of the date of this
report, Fangda Jianke has applied for execution and has not received the relevant funds. In the future,
it will promote the judicial auction of the seized assets and prepare for bankruptcy applica tion.
(3) Contingent liabilities formed by providing of guarantee to other companies' debts and their
influences on financial situation
By June 30, 2022, the Company has provided loan guarantees for the following entities:
Name of guaranteed entity Guarantee Amount (in RMB10,000) Term
Guarantee and mortgage
Fangda Property 91,000.00 2020/2/25-2030/02/24
guarantee
Fangda Property Guarantee 45,850.00 2021/03/18-2031/03/18
Kechuangyuan Software Guarantee 1,000.00 2021/09/30-2022/09/30
Fangda Zhiyuan
Guarantee 5,000.00 2021/08/12-2022/08/07
Technology
Fangda Jianke Guarantee 3,000.00 2022/06/01-2023/06/01
Fangda Jianke Guarantee 5,000.00 2022/03/17-2023/03/26
Notes:
① Contingent liabilities caused by guarantees provided for other entities are all related guarantees
between interested entities in the Company.
② The Company's property business provides periodic mortgage guarantee for property purchasers. The
term of the periodic guarantee lasts from the effectiveness of guarantee contracts to the completion of
mortgage registration and transfer of housing ownership certificates to banks. As of June 30, 2022, the
Company has undertaken the above phased guarantee amount of RMB35,265,600.
(4) Other contingent liabilities and their influe nces
As of June 30, 2022, the Company has no other contingencies to be disclosed.
3. Others
As of June 30, 2022, the Company has not revoked the letter of guarantee:
Guarantee balance (original
Currency Deposit (RMB) Credit line used (RMB)
currency)
RMB yuan 777,924,532.56 - 777,924,532.56
INR 87,107,132.78 495,801.30 6,909,437.38
HKD (HKD) 15,349,982.00 15,000,000.00 -
United States Dollar (USD) 7,455,636.33 4,028,154.76 46,009,602.91
SGD 2,700,000.00 - 13,005,900.00
Euro (EUR) 3,771,764.01 26,434,030.89
Total 894,309,047.68 19,523,956.06 870,283,503.73
133
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
XIV. Post-balance-sheet events
1. 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 August 26, 2022
(report date approved by the Board of Directors).
XV. Other material events
1. 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.
(2) Financial information
In RMB
Offset
Curtain Rail Real
Item New energy Others between Total
wall transport estate
segments
1,152,781, 300,269,75 148,989,15 8,501,022. 14,705,232 12,183,607 1,613,063,
Turnover
762.78 1.24 3.73 57 .50 .52 315.30
Including:
external 1,150,768, 300,269,75 144,893,89 8,159,691. 8,971,603. 1,613,063,
transactio 372.43 1.24 6.06 65 92 315.30
n income
Inter- 2,013,390. 4,095,257. 5,733,628. 12,183,607
341,330.92 0.00
segment 34 66 59 .52
134
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
transactio
n income
Including:
major 1,134,030, 300,180,87 83,384,432 8,501,022. 2,440,404. 1,523,656,
0.00
business 357.71 5.13 .54 57 34 283.61
turnover
Operating 970,969,41 237,515,39 50,269,160 3,793,584. 3,450,537. 1,259,515,
418,824.01
cost 6.01 4.89 .81 03 15 842.60
Including:
major 962,083,81 237,493,70 38,732,091 3,793,584. 3,405,218. 1,238,697,
0.00
business 1.64 7.69 .98 03 57 976.76
cost
-
Operation 116,197,84 30,778,786 51,885,075 1,536,836. 17,727,940 224,045,87
5,919,388.
cost 8.20 .10 .42 84 .93 5.67
18
Operating -
65,614,498 31,975,570 46,834,917 3,170,601. 14,652,458 129,501,59
profit/(lo 3,441,532.
.57 .25 .49 70 .55 7.03
ss) 44
Total 5,241,241, 832,026,35 6,426,315, 922,267,28 3,732,426, 4,742,771, 12,411,505
assets 275.43 3.41 246.85 7.00 885.84 266.13 ,782.40
Total
3,609,633, 502,762,96 3,735,917, 812,657,68 1,388,459, 3,289,375, 6,760,056,
liabilitie
890.15 8.76 549.65 7.52 854.39 400.53 549.94
s
Note: The financial information of the reportable segment should be disclosed in
conjunction with the company's specific conditions including information on the main
business income and the cost of the main business.
(3) Others
Since more than 90% of the Group's revenue comes from Chinese customer and 90% of the Group's assets are
in China, no detailed regional information is needed.
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 Bad debt Remaining book Bad debt
Type value provision Book value provision Book
Proport Provisi value Proport Provisi value
Amount Amount Amount Amount
ion on rate ion on rate
Includi
ng:
Account
receiva
811,162 20,387. 790,774 595,366 9,430.3 585,936
ble for 100.00% 2.51% 100.00% 1.58%
.00 35 .65 .68 8 .30
which
bad
135
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
debt
provisi
on is
made by
group
Includi
ng:
Portfol
811,162 20,387. 790,774 595,366 9,430.3 585,936
io 3. 100.00% 2.51% 100.00% 1.58%
.00 35 .65 .68 8 .30
Others
811,162 20,387. 790,774 595,366 9,430.3 585,936
Total 100.00% 2.51% 100.00% 1.58%
.00 35 .65 .68 8 .30
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 440,052.00 3,212.38 0.73%
1-2 years 222,666.00 4,675.99 2.10%
2-3 years 148,444.00 12,498.98 8.42%
Total 811,162.00 20,387.35
Group recognition basis:
See 9. Financial Tools in V. Important Accounting Policies and Accounting Estimates for the recognition
criteria and instructions for withdrawing bad debt reserves by portfolio
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 di sclose information about
bad debts:
□ Applicable Inapplicable
Account age
In RMB
Age Closing balance
Within 1 year (inclusive) 440,052.00
1-2 years 222,666.00
2-3 years 148,444.00
Total 811,162.00
(2) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Opening Closing
Type Written-back
balance Provision Canceled Others balance
or recovered
Portfolio 3.
9,430.38 10,956.97 20,387.35
Others
Total 9,430.38 10,956.97 20,387.35
136
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
(3) Balance of top 5 accounts receivable at the end of the period
In RMB
Balance of bad debt
Closing balance of
Entity Percentage (%) provision at the end of
accounts receivable
the period
Top five summary 751,933.30 92.70% 19,954.98
Total 751,933.30 92.70%
2. Other receivables
In RMB
Item Closing balance Opening balance
Other receivables 1,821,626,998.78 1,276,731,665.95
Total 1,821,626,998.78 1,276,731,665.95
(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 114,964.87 120,143.89
Accounts between related parties
1,821,408,667.12 1,276,507,096.22
within the scope of consolidation
Total 1,834,666,623.01 1,289,770,231.13
2) Method of bad debt provision
In RMB
First stage Second stage Third stage
Expected credit
Expected credit
Bad debt provision Expected credit loss for the entire Total
loss for the entire
losses in the next duration (credit
duration (no credit
12 months impairment has
impairment)
occurred)
Balance on January
3,396.70 13,035,168.48 13,038,565.18
1, 2022
Balance on January
1, 2022 in the
current period
Provision 1,059.05 1,059.05
Balance on June 30,
4,455.75 13,035,168.48 13,039,624.23
2022
Changes in book balances with significant changes in the current period
□ Applicable Inapplicable
137
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
Account age
In RMB
Age Closing balance
Within 1 year (inclusive) 1,821,631,454.53
Over 3 years 13,035,168.48
3-4 years 0.00
4-5 years 42,877.00
Over 5 years 12,992,291.48
Total 1,834,666,623.01
3) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Closing
Type Opening balance Written-back
Provision Canceled Others balance
or recovered
Other
receivables 13,039,624.2
13,038,565.18 1,059.05
and bad debt 3
provision
13,039,624.2
Total 13,038,565.18 1,059.05
3
4) Balance of top 5 other receivables at the end of the period
In RMB
Balance of bad
debt provision
Entity By nature Closing balance Age Percentage (%)
at the end of
the period
Affiliated
Less than 1
Fangda Property party 930,462,523.45 51.08% 0.00
year
payment
Affiliated
Fangda Dongguan Less than 1
party 358,077,558.80 19.66% 0.00
New Material year
payment
Fangda Jiangxi Affiliated
Less than 1
Property party 208,139,038.54 11.42% 0.00
year
Development payment
Affiliated
Less than 1
Fangda Jianke party 205,841,633.15 11.30% 0.00
year
payment
Affiliated
Fangda Hongjun Less than 1
party 88,385,280.00 4.85% 0.00
Investment year
payment
Total 1,790,906,033.94 98.31% 0.00
138
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
3. Long-term share equity investment
In RMB
Closing balance Opening balance
Impai Impai
Item Remaining book rment Remaining book rment
Book value Book value
value provi value provi
sion sion
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
Change (+,-) Balan
ce of
impai
rment
provi
Incre Decreas Impairme sion
Closing book
Invested entity Opening book value ased ed nt at
Others value
inves investm provisio the
tment ent n end
of
the
perio
d
Fangda Jianke 491,950,000.00 491,950,000.00
Fangda Jiangxi
74,496,600.00 74,496,600.00
New Material
Fangda Property 198,000,000.00 198,000,000.00
Shihui
61,653.00 61,653.00
International
Fangda New
99,000,000.00 99,000,000.00
Energy
Fangda Hongjun
98,000,000.00 98,000,000.00
Investment
Fangda
235,323,000.00 235,323,000.00
Investment
Total 1,196,831,253.00 1,196,831,253.00
4. Operational revenue and costs
In RMB
Amount occurred in the current period Occurred in previous period
Item
Income Cost Income Cost
Other businesses 14,705,232.50 418,824.01 12,068,999.58 89,904.13
Total 14,705,232.50 418,824.01 12,068,999.58 89,904.13
Income information:
139
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
In RMB
Contract classification Segment 1 - other segments Total
Including:
Other businesses 14,705,232.50 14,705,232.50
Total 14,705,232.50 14,705,232.50
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 RMB27,691,651.94, of which
RMB12,889,648.98 is expected to be recognized in 2022, and RMB8,412,900.45 is expected to be recognized
in 2023, RMB6,389,102.51 is expected to be recognized in 2024 and beyond.
5. Investment income
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Gains from long-term equity
33,660,000.00
investment measured by costs
Investment gain of financial
431,992.15 316,138.71
products
Total 431,992.15 33,976,138.71
XVII. Supplementary Materials
1. Detailed accidental gain/loss
Applicable □ Inapplicable
In RMB
Item Amount Notes
Gain/loss of non-current assets -815,581.50
Government subsidies accounted into current gain/loss
account, other than those closely related to the Company's
4,734,557.71
common business, comply with the national policy and
continues to enjoy at certain fixed rate or amount.
Capital using expense charged to non-financial enterprises
3,454,345.45
and accounted into the current income account
Gain/loss from change of fair value of transactional
financial asset and liabilities, and investment gains from
disposal of transactional financial assets and liabilities 3,145,876.39
and sellable financial assets, other than valid period value
instruments related to the Company's common businesses
Gain/loss from change of fair value of investment property
1,068,328.60
measured at fair value in follow-up measurement
Other non-business income and expenditures other than the -2,131,614.49
140
Interim Financial Statements 2022 of China Fangda Group Co., Ltd.
above
Less: Influenced amount of income tax 1,815,756.39
Influenced amount of minority shareholders' equity 72,457.02
Total 7,567,698.75 --
Other gain/loss items satisfying the definition of non -recurring gain/loss account:
□ Applicable Inapplicable
The Company has no other gain/loss items satisfying the definition of non-recurring gain/loss account
Circumstance that should be defined as recurrent profit and loss to Explanation Announcement of
Information Disclosure No. 1 - Non-recurring gain/loss
□ Applicable Inapplicable
2. Net income on asset ratio and earning per share
Earning per share
Profit of the report Weighted average net
period income/asset ratio Basic earnings per share Diluted Earnings per
(yuan/share) share (yuan/share)
Net profit attributable
to common shareholders 2.03% 0.10 0.10
of the Company
Net profit attributable
to the common owners of
the PLC after deducting 1.89% 0.10 0.10
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
141
