Interim Report 2022 of China Fangda Group Co., Ltd.
China Fangda Group Co., Ltd.
2022 Interim Report
August 2022
1
Interim Report 2022 of China Fangda Group Co., Ltd.
Chapter 1 Important Statement, Table of Contents and Definitions
The members of the Board and the Company guarantee that the
announcement is free from any false information, misleading statement or
material omission and are jointly and severally liable for the information's
truthfulness, accuracy and integrity.
Mr. Xiong Jianming, the Chairman of Board, Mr. Lin Kebin, the Chief
Financial Officer, and Mr. Wu Bohua, the manager of accounting department
declare: the Financial Report carried in this report is authentic and completed.
All the Directors have attended the meeting of the board meeting at which
this report was examined.
Forward-looking statements involved in this report including future plans
do not make any material promise to investors. Investors should pay attention
to investment risks.
The Company has specified market, management and production and
operation risks in this report. Please review the 10. Risks Facing the Company
and Measures in Chapter 3 Management Discussion and Analysis.
The Company will distribute no cash dividends or bonus shares and has
no reserve capitalization plan.
2
Interim Report 2022 of China Fangda Group Co., Ltd.
Table of Contents
Chapter 1 Important Statement, Table of Contents and Definitions .................................................................. 2
Chapter 2 About the Company and Financial Highlights .................................................................................... 7
1. Company Profile .......................................................................................................................................... 7
2. Contacts and liaisons ................................................................................................................................... 7
3. Other Information ....................................................................................................................................... 7
4. Financial Highlight ...................................................................................................................................... 8
5. Differences in accounting data under domestic and foreign accounting standards ............................... 8
6. Accidental gain/loss item and amount ........................................................................................................ 9
Chapter 3 Management Discussion and Analysis ............................................................................................... 10
1. Major businesses of the Company during the report period ................................................................. 10
II. Core Competitiveness Analysis ................................................................................................................ 18
III. Core business analysis............................................................................................................................. 21
IV. Non-core business analysis ...................................................................................................................... 23
V. Assets and Liabilities ................................................................................................................................. 23
VI. Investment ................................................................................................................................................ 25
VII. Major assets and equity sales ................................................................................................................ 27
VIII. Analysis of major joint stock companies ............................................................................................ 27
IX. Structural entities controlled by the Company..................................................................................... 27
X. Risks facing the Company and measures ............................................................................................... 28
Chapter IV Corporation Governance .................................................................................................................. 30
I. Annual and extraordinary shareholder meetings held during the report period ................................. 30
II. Changes in the Directors, Supervisors and Senior Executives ............................................................. 30
III. Profit Distribution and Reserve Capitalization in the Report Period ................................................ 30
IV. Share incentive schemes, staff shareholding program or other incentive plans ................................. 30
V. Environmental and social responsibility ......................................................................................................... 31
1. Environmental protection ......................................................................................................................... 31
2. Social responsibilities ................................................................................................................................. 32
Chapter VI Significant Events .............................................................................................................................. 33
I. Commitments that have been fulfilled and not fulfilled by actual controller, shareholders, related
parties, acquirers of the Company ............................................................................................................... 33
II. Non-operating capital use by the controlling shareholder or related parties in the reporting term . 33
III. Incompliant external guarantee ............................................................................................................. 33
IV. Engaging and dismissing of CPA ............................................................................................................ 33
V. Statement of the Board on the “non-standard auditors' report” issued by the CPA on the current
report period .................................................................................................................................................. 33
VI. Statement of the Board of Directors on the Non-standard Auditor's Report for H1 2014 ............... 33
VII. Bankruptcy and capital reorganizing .................................................................................................. 33
VIII. Lawsuit .................................................................................................................................................. 33
IX. Punishment and rectification.................................................................................................................. 34
X. Credibility of the Company, controlling shareholder and actual controller........................................ 34
XI. Material related transactions ................................................................................................................. 34
XII. Significant contracts and performance ................................................................................................ 35
3
Interim Report 2022 of China Fangda Group Co., Ltd.
13. Other material events .............................................................................................................................. 41
XIV. Material events of subsidiaries............................................................................................................. 41
Chapter VII Changes in Share Capital and Shareholders ................................................................................. 42
I. Changes in shares ....................................................................................................................................... 42
II. Share placing and listing .......................................................................................................................... 44
III. Shareholders and shareholding.............................................................................................................. 44
IV. Changes in shareholding of Directors, Supervisors and Senior Management ................................... 47
V. Changes in controlling shareholder or actual controller ....................................................................... 47
Chapter VIII Preferred Shares ............................................................................................................................. 48
Chapter IX Information about the Company's Securities ................................................................................. 49
Chapter X Financial Statements .......................................................................................................................... 50
I. Auditor's report .......................................................................................................................................... 50
II. Financial statements ................................................................................................................................. 50
III. General Information ............................................................................................................................... 70
IV. Basis for the preparation of financial statements.................................................................................. 71
V. Significant Account Policies and Estimates ............................................................................................. 71
VI. Taxation .................................................................................................................................................. 110
VII. Notes to the consolidated financial statements .................................................................................. 113
VIII. Change to Consolidation Scope ......................................................................................................... 152
IX. Equity in Other Entities ........................................................................................................................ 152
X. Risks of Financial Tools .......................................................................................................................... 155
XI. Fair Value ............................................................................................................................................... 158
XII. Related Parties and Transactions ....................................................................................................... 160
XIII. Contingent events ............................................................................................................................... 163
XIV. Post-balance-sheet events ................................................................................................................... 166
XV. Other material events ........................................................................................................................... 166
XVI. Notes to Financial Statements of the Parent .................................................................................... 167
XVII. Supplementary Materials ................................................................................................................. 172
4
Interim Report 2022 of China Fangda Group Co., Ltd.
Reference
1. Financial statements stamped and signed by the legal representative, CFO and accounting manager;
2. Originals of all documents and manuscripts of Public Notices of the Company disclosed in public.
5
Interim Report 2022 of China Fangda Group Co., Ltd.
Definitions
Terms Refers to Description
Fangda Group, company, the Company Refers to China Fangda Group Co., Ltd.
Articles of Association of China Fangda
Articles of Association Refers to
Group Co., Ltd.
Meetings of shareholders of China
Meeting of shareholders Refers to
Fangda Group Co., Ltd.
Board of Directors of China Fangda
Board of Directors Refers to
Group Co., Ltd.
Supervisory Committee of China Fangda
Supervisory Committee Refers to
Group Co., Ltd.
Shenzhen Banglin Technologies
Banglin Technology Refers to
Development Co., Ltd.
Gong Qing Cheng Shi Li He Investment
Shilihe Co. Refers to Management Partnership Enterprise
(limited partner)
Shengjiu Co. Refers to Shengjiu Investment Ltd.
Fangda Jianke Refers to Shenzhen Fangda Jianke Group Co., Ltd.
Fangda Zhiyuan Refers to Fangda Zhichuang Technology Co., Ltd.
Fangda New Materials (Jiangxi) Co.,
Fangda Jiangxi New Material Refers to
Ltd.
Fangda New Resource Refers to Shenzhen Fangda New Energy Co., Ltd.
Shenzhen Fangda Property Development
Fangda Property Refers to
Co., Ltd.
Chengda Fangda Construction
Fangda Chengdu Technology Refers to
Technology Co., Ltd.
Dongguan Fangda New Material Co.,
Fangda Dongguan New Material Refers to
Ltd.
Shenzhen Qianhai Kechuangyuan
Kechuangyuan Software Refers to
Software Co., Ltd.
Fangda (Jiangxi) Property Development
Fangda Jiangxi Property Refers to
Co., Ltd.
Shenzhen Fangda Investment Partnership
Fangda Investment Refers to
(Limited Partnership)
Shenzhen Fangda Yunzhu Technology
Yunzhu Refers to
Co., Ltd.
Shanghai Fangda Zhijian Technology
Fangda Shanghai Technology Refers to
Co., Ltd
SZSE Refers to Shenzhen Stock Exchange
6
Interim Report 2022 of China Fangda Group Co., Ltd.
Chapter 2 About the Company and Financial Highlights
1. Company Profile
Stock ID Fangda Group, Fangda B Stock code 000055, 200055
Modified stock ID None
Stock Exchange Shenzhen Stock Exchange
Chinese name China Fangda Group Co., Ltd.
Chinese abbreviation Fangda Group
English name of the
CHINA FANGDA GROUP CO.,LTD.
Company
Abbreviation of English
CFGC
name of the Company
Legal representative Xiong Jianming
2. Contacts and liaisons
Secretary of the Board Representative of Stock Affairs
PRINTED NAME Xiao Yangjian Guo Linchen
39th Floor, Building T1, Fangda Town, 39th Floor, Building T1, Fangda Town,
Address No.2, Longzhu 4th Road, Nanshan No.2, Longzhu 4th Road, Nanshan
District, Shenzhen District, Shenzhen
Telephone 86(755) 26788571 ext. 6622 86(755) 26788571 ext. 6622
Fax 86(755)26788353 86(755)26788353
Email zqb@fangda.com zqb@fangda.com
3. Other Information
1. Liaison
Changes to the Company's registration address, office address, post code, website or email during the report period
□ Applicable Inapplicable
Company's registration address, office address, post code, website or email have not changed during the report period. See Annual
Report 2021 for details.
2. Information disclosure and inquiring
Changes to the information disclosure and inquiring place
□ Applicable Inapplicable
Please refer to the 2021 annual report for the newspapers and websites where the Company's information is disclosed. The inquiry
address of the interim report has remained unchanged during the report period.
3. Other information
Whether other relevant information has changed during the reporting period
7
Interim Report 2022 of China Fangda Group Co., Ltd.
□ Applicable Inapplicable
4. Financial Highlight
Whether the Company needs to make retroactive adjustment or restatement of financial data of previous years
□ Yes No
This report period Same period last year Year-on-year change (%)
Turnover (yuan) 1,613,063,315.30 1,568,778,834.98 2.82%
Net profit attributable to
shareholders of the listed 112,685,273.77 111,488,701.33 1.07%
company (yuan)
Net profit attributable to the
shareholders of the listed
company and after deducting 105,117,575.02 97,095,794.95 8.26%
of non-recurring gain/loss
(yuan)
Net cash flow generated by
-306,580,793.04 -500,924,545.00 38.80%
business operation (yuan)
Basic earnings per share
0.10 0.10 0.00%
(yuan/share)
Diluted Earnings per share
0.10 0.10 0.00%
(yuan/share)
Weighted average net
2.03% 2.05% -0.02%
income/asset ratio
End of the report period End of last year Year-on-year change
Total asset (yuan) 12,411,505,782.40 12,261,338,518.66 1.22%
Net profit attributable to the
shareholders of the listed 5,582,581,119.09 5,524,039,886.94 1.06%
company (RMB)
5. Differences in accounting data under domestic and foreign accounting standards
1. Differences in net profits and assets in financial statements disclosed according to the international and
Chinese account standards
□ Applicable Inapplicable
There is no difference in net profits and assets in financial statements disclosed according to the international and Chinese account
standards during the report period.
2. Differences in net profits and assets in financial statements disclosed according to the overseas and
Chinese account standards
□ Applicable Inapplicable
There is no difference in net profits and assets in financial statements disclosed according to the international and Chinese account
standards during the report period.
8
Interim Report 2022 of China Fangda Group Co., Ltd.
6. Accidental gain/loss item and amount
Applicable □ Inapplicable
In RMB
Item Amount Notes
Non-current asset disposal gain/loss
-815,581.50
(including the write-off part for which
assets impairment provision is made)
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 and accounted into 3,454,345.45
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
3,145,876.39
and liabilities 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 measured at fair 1,068,328.60
value in follow-up measurement
Other non-business income and -2,131,614.49
expenditures other than the above
Less: Influenced amount of income tax 1,815,756.39
Influenced amount of minority
72,457.02
shareholders' equity (after-tax)
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
The Company has no circumstance that should be defined as recurrent profit and loss to Explanation Announcement of
Information Disclosure No. 1 - Non-recurring gain/loss
9
Interim Report 2022 of China Fangda Group Co., Ltd.
Chapter 3 Management Discussion and Analysis
1. Major businesses of the Company during the report period
Since its inception, the Company has remained committed to its core business and adhered to its original mission of green,
low-carbon and environmental protection, and has successively developed products such as smart curtain walls, solar photovoltaic
curtain walls, PVDF aluminum veneer, and rail transit screen doors. Since its conception, the company has always adhered to the
philosophy "technology-based, innovation-based", and has created Fangda's craftsmanship in pursuit of outstanding quality. Our
smart curtain wall system, PVDF aluminum veneer, rail transit screen door system, and other products have become global
industry benchmarks. The comprehensive competitiveness of Fangda intelligent curtain wall ranks among the top three in the
curtain wall industry, and the platform screen door system of rail transit is recognized as the "champion product of manufacturing
industry" by the Ministry of Industry and Information Technology. During the reporting period, the subsidiaries Fangda Zhiyuan
Technology and Yunzhu were rated as "specialized, special and innovative" enterprises in Shenzhen, Fangda Shanghai
Technology was rated as "specialized, special and innovative" enterprise in Shanghai, and the subsidiary Fangda Dongguan New
Materials was selected as synergy multiplier enterprises; The Industrial Product Standard Platform Screen Doors of Urban Rail
Transit (CJ/T236-2022), which is mainly revised by the subsidiary Fangda Zhiyuan Technology, was approved and issued by the
Ministry of Housing and Urban Rural Development of the People's Republic of China and was implemented from May 1, 2022.
The Company has 7 national high-tech enterprises, 1 enterprise product has been recognized as the champion product of
manufacturing industry by the Ministry of Industry and Information Technology of the People's Republic of China, 3 "specialized,
special and innovative" enterprises, 2 provincial-level enterprise technology research centers, and its business covers more than
120 countries and regions around the world.
In the first half of 2022, the epidemic situation in many places in China was severe and complicated, the economic downward
pressure continued to increase, and the prices of bulk raw materials fluctuated violently, which brought severe challenges to the
Company's production and operation. Through the joint efforts of all employees, the Company has completed its 2022 H1 business
goals primarily under the leadership of the Board of Directors and management team. During the reporting period, the Company
achieved operating income of RMB1,613,063,300, an increase of 2.82% over the same period of the previous year; the net profit
attributable to the parent Company's owner was RMB112,685,300, an increase of 1.07% over the same period of the previous year.
Net profit after recurring gains and losses was RMB105,117,600, an increase of 8.26% over the same period of the previous year.
By the end of the reporting period, the Company's order reserve reached RMB7,953,652,900 (excluding real estate pre-sale). This
represents an increase of 26.97% over the same period in the previous year, which was 4.93 times the operating income in 2022
H1, laying the foundation for the Company's production and operation in 2022.
(1) Smart curtain wall system and material
1. Industry development
The growth of the curtain wall industry is closely related to the level of development of the national economy. The stable and
favorable macroeconomic situation in China, as well as the ongoing urbanization process, provide a solid foundation for the
growth of the curtain wall industry. The building of critical locations has been vigorously developed as China enters the high-
quality development stage. There are an increasing number of large-scale high-end curtain wall projects in major places such as
the Guangdong-Hong Kong-Macao Greater Bay Area, the Yangtze River Delta, Chengdu, and Chongqing. On July 12, 2022, the
National Development and Reform Commission announced the implementation plan for new urbanization during the 14th Five
Year Plan period, emphasizing that China is still in an era of fast urbanization development, with a strong driving force for
urbanization. At the same time, it put forth essential tasks such as growing public infrastructure construction, which has resulted in
significant market prospects for the curtain wall construction industry's long-term development.
2. Business Status
10
Interim Report 2022 of China Fangda Group Co., Ltd.
(1) Main products and purposes
Smart curtain walls are among the Company's major products and have been widely used in high-end office buildings,
corporate headquarters, urban complexes, high-end residences and hotels, urban public buildings, and other applications.
By focusing on intelligence, low-carbon, environmental protection, and sustainability, the smart curtain wall and material
industry fosters the development of curtain walls and innovative materials in China. The Company has a strong R&D capability as
well as a sophisticated PVDF aluminum veneer production and manufacturing base. The intelligent curtain wall technology has
been widely deployed in significant projects in more than 160 cities around the world, integrating energy reduction, environmental
protection, and intelligence. It has numerous times received the Luban Award (National Excellent Engineering Award), China's
highest construction award. Its competitiveness is among the highest in the world, and it is a well-known brand in the worldwide
curtain wall business.
(2) Main business modes, specific risks and changes;
During the reporting period, the Company's main business model did not change. The Company's smart curtain wall design
and construction contract orders are mainly obtained through the bidding mode (open bidding, invitational bidding). Based on the
orders, the Company provides the overall solution of design, raw material procurement, production and processing, construction
and installation and after-sales service. Due to the long period of order implementation, it is greatly affected by national industrial
policies, raw material prices, and fluctuations in the labor market. Different orders have different technical requirements. It is
impossible to simply copy the existing experience, and the requirements for technology and management are relatively high.
(3) Market competition pattern in which the Company is located and the Company's market position
The domestic building curtain wall market has increasingly grown in recent years, and industry competition has increased.
The market gradually eliminates small and medium-sized firms with limited scale and low qualifications, increasing industry
concentration. The industry's leading businesses are increasing their market share in the high-end curtain wall market through
management and brand advantages, and the rate of development is likely to accelerate further. The domestic construction curtain
wall market still offers a lot of room for growth for the industry's leaders.
Fangda Jianke Co., Ltd., a wholly-owned subsidiary of the Company, has the highest qualifications for curtain wall design
and construction enterprises in China - the first-class qualification for professional contracting of architectural curtain wall
engineering and the first-class qualification for architectural curtain wall engineering design. It is the leading enterprise in China's
curtain wall industry. Fangda Jianke has won the highest awards in the national construction industry, including "Luban Award",
"National Quality Engineering Award", "Zhan Tianyou Civil Engineering Award", "China Building Decoration Award", and over
200 provincial and ministerial awards. Fangda Jianke has participated in drafting more than 20 national or industry standards,
including "Energy-saving Design Standards for Public Buildings", setting 18 Chinese enterprise records. In the same industry
across the country, the Company is the earliest to establish R&D institutions such as corporate postdoctoral workstations,
engineering technology centers, and curtain wall research and design institutes. The autonomous innovation capacity and technical
level of the high-end curtain wall industry have reached the advanced level of the same industry in China, promoting technological
progress and development. Fangda trademark was named a "China Famous Trademark" and won "International Credit Brand".
(4) Business drive
In period During the, the curtain wall system and materials industry realized operating income of RMB1,150,768,400, an
increase of 4.89% over the same period of the previous year; the net profit was RMB58,028,500, an increase of 124.69%； with a
gross margin of 15.67%, up 1.39 percentages over the same period of last year. The key drivers of performance are as follows:
① Correct market placement, focusing on overall strength to secure high-quality orders
The Company adheres to the market positioning of high-end curtain walls at home and abroad in the first half of 2022, deeply
cultivating key areas such as Guangdong, Hong Kong and Macao Bay area, Yangtze River Delta, Chengdu, and Chongqing. As a
result, orders continued to surge based on the record high in 2021. The total amount of high-end curtain wall and material industry
orders won and signed by the Company during the reporting period was RMB3,074,850,600, an increase of 19.17% over the same
time the previous year. Large-scale projects and enterprise headquarters projects have grown, and international orders have
11
Interim Report 2022 of China Fangda Group Co., Ltd.
reached a new high. There are ten projects with contract values exceeding 100 million yuan. The single order quantity is enormous,
the order quality is excellent, and the head enterprises' benefits are apparent. The high-end office building of more than 300
meters-Jinan CITIC Pacific Central Business District (Jinan Zun) project; enterprise headquarters building-Anbang Property
Insurance Shenzhen Headquarters Building, China Electronics Shenzhen Bay Super Headquarters Building, Shenzhen Zhongjin
Building; overseas-the VMCTC project in Melbourne, Australia, and so on. The consistent increase in the number and quality of
orders reflects the Company's excellent market competitiveness. By the end of the reporting period, the Company's order reserve
of curtain wall system and materials industry was RMB6,364,428,900, an increase of 39.37% over the same period of the previous
year, which was 5.53 times the operating revenue of curtain wall system and materials industry in 2022 H1, laying a solid
foundation for the sustainable and healthy development of the Company.
② When technical innovation is prioritized, the entire process service system promotes high-quality development.
The Company's subsidiaries in the smart curtain wall system and material industry are all national high-tech businesses, with
two being "specialized, special, and innovative." During the reporting period, the Company has successively acquired 556 patents
for curtain wall products and 19 software copyrights, including 39 software patents, and participated in the compilation of 22
national technical specifications and standards. Its independent innovation capacity and technology have reached the advanced
level in the same industry in China, which has effectively promoted the technological progress and development of the high-end
curtain wall industry. During the reporting period, the Company used continuous innovation to solve customer technical pain
points and supply products and technical solutions required by innovation. At the same time, the company offered technical
support for the project duration and quality, improved customer satisfaction and influence, and assisted and empowered the
Company's high-quality development with the whole process and all-around curtain wall project service system.
③ Create an efficient operation organization by promoting the development of intelligent and refined management
The Company has actively created an efficient operation organization by promoting the development of intelligent and
refined management. The Company has introduced intelligent welding robots and automatic gluers that represent advanced
technologies, as well as intelligent manufacturing production lines that represent the first of their kind. The Company has also
created an information management platform that primarily consists of the PMS project management platform, MES production
management platform, and VPO supply management platform. It has realized data cloud transmission and working language
standardization, accurate management and sharing of data flow, capital flow, and information flow, opened up various
management modules, improved the scientificity of decision-making, sped up the response and execution ability to business, and
realized the refined data management of project management, effectively improving the Company's management level and
operation efficiency.
(5) Industry qualification types and validity period
The Company has a Class A qualification for building curtain wall engineering contracting and class A qualification for
building curtain wall engineering design. It is the highest level for curtain wall design and construction companies in China.
During the reporting period, the Company's relevant qualifications have not changed significantly, and the validity period has not
expired.
(6) Quality control system, implementation standards, control measures and overall evaluation
Quality control system: As a leading enterprise of high-end curtain wall, the Company pays attention to quality management.
It is the first in the industry to pass ISO9001, ISO14001, OHSAS18001 international and domestic dual certification, GB/T29490
intellectual property management system certification, and is the first to establish sales, design, supply, production, one-stop
quality control system such as construction, after-sales, customer service, etc., implement strict quality control and supervision for
each link, and create a strong quality management system.
Implementation of the standard: In the process of building curtain wall business, the Company strictly complies with
GB/T21086-2007 "Building Curtain Wall", JG/T231-2007 "Building Glass Lighting Roof" and other national and industrial
standards.
12
Interim Report 2022 of China Fangda Group Co., Ltd.
Control measures: The Company has established complete and effective quality control measures and quality management
organization, introduced digital information management, and digitally coded the company's businesses, various raw materials,
factory workshop and construction site operation procedures through computer information integration system, The eight systems
(CRM customer relationship management system, OA office system, HR human resources system, ERP financial management
system, MES production management system, PMS engineering management system, VPO supply management system and QAS
quality safety management system) realize the rapid transmission, sharing and collaborative application of information through
cloud terminal technology. Strictly implement various quality management and control measures to provide customers with high-
quality products and services.
Overall evaluation: The Company's quality control system and executive standards meet the relevant requirements of the
current relevant national norms and standards, maintain good operation, and provide customers with stable and reliable products
and services.
(7) Major project quality problem during the reporting period
None.
(2) Rail transport screen door business
1. Industry development
As an important part of high-end manufacturing equipment, rail transit equipment is closely related to the national economic
development, urban rail transit development and construction planning. In recent years, rail transit has become more and more
important in urban development. It is predicted that 111 new rail transit lines will be constructed in 49 cities between 2022 and
2023, including Guangzhou, Zhengzhou, Shanghai, Nanchang, Hangzhou and Nanning, generating a total mileage of 1224.96
kilometers and 1243 stations with a total investment of 1780.314 billion yuan between 2022 and 2023.
By June 2022, 51 cities in 31 provinces (autonomous regions and municipalities directly under the central government) and
Xinjiang Production and Construction Corps had opened and operated 277 urban rail transit lines totaling 9067 kilometers,
according to data provided by the Ministry of Transport. Urban rail transit operating lines in China continue to grow in length and
number as cities develop rapidly. The operation demand of urban rail transit in China will grow continuously in the future, which
is conducive to the sustainable development of rail transit related industries. While the mileage of rail transit lines continues to
grow, some rail transit PSD projects built in the early stage have also entered the maintenance period, and the maintenance service
business will also usher in sustained and stable development space in the future.
2. Business Status
(1) Main products and purposes
The rail transit screen door system, which is put at the edge of the platform of urban rail transit stations to separate the train
from the platform waiting area, is the Company's major offering. Closed screen doors, full-height non-closed screen doors, and
half-height screen doors are among the available product varieties. It plays a significant part in the operation of rail transit,
guarantees its safety, and aids in the development of an energy- and environmentally-friendly rail transit operation system. With
many domestic metro platform screen door projects entering the maintenance period, the Company actively expands the industrial
chain and takes the lead in developing Metro maintenance business in China.
(2) Main business model
The Company is a supplier and service provider of rail transit PSD system integrating R&D, design, manufacturing,
installation and commissioning and technical services, with a complete industrial chain. The Company mainly obtains orders by
participating in project bidding, carries out customized design, process treatment, raw material procurement, production and
installation of equipment system and provides technical maintenance services on the basis of independent research and
development according to the requirements of different customers. The business model has not changed during the reporting
period. Focusing on the whole life cycle service of rail transit platform screen door system, the Company promotes the application
of new technology in the planning stage, provides high-quality products in the construction stage, improves customer operation
13
Interim Report 2022 of China Fangda Group Co., Ltd.
efficiency in the maintenance stage, and develops into an overall solution provider of rail transit platform screen door system in
the whole life cycle.
(3) Market competition pattern in which the Company is located and the Company's market position
As the leading manufacturer of urban rail transit platform screen doors, the company is a global leader in this field. In China,
it is one of the first national high-tech enterprises to develop, design, manufacture, install, and maintain platform screen door
systems. It ranks in the forefront of the industry in terms of the number of patents and software copyrights it has obtained. As part
of its contribution to filling a gap in the Chinese market, the company was responsible for preparing the first industry standard for
platform screen doors - the platform screen door of urban rail transit (CJ/T236-2022). Platform screen door systems of rail transit
with independent intellectual property rights have received the title of national key new products, have been recognized as
"National Torch Plan Industrialization Demonstration Projects" by the Ministry of Science and Technology of the People's
Republic of China, and have been recognized by the Ministry of Industry and Information Technology of the People's Republic of
China as the "single champion product of manufacturing". The Company has been forging ahead in the domestic and foreign
markets with its technical advantages for more than 20 years through continuous research and development. It has undertaken 110
subway platform door projects in 44 cities around the world, and has become the largest rail transit platform screen door system
supplier and service provider in the world. During the reporting period, the subsidiary Fangda Zhiyuan Technology was selected as
the "specialized, special and innovative" enterprise in Shenzhen.
(4) Business drive
① Leading market position, laying a solid foundation for development
In addition to providing integrated professional services of rail transit platform screen door systems products, the Company is
a leading enterprise in the field of rail transit platform screen door systems in China, including R&D, design, manufacturing,
installation, commissioning, technical services and maintenance, among others. It offers outstanding advantages such as safety,
reliability, availability, and maintainability. The Company is one of the most trusted experts in the field of rail transit platform
screen door systems both at home and abroad.
During the reporting period, the Company obtained orders for PSD system such as Wuhan Optics Valley Ecological Corridor
tourism supporting facilities - tourism special line phase I project, Shenzhen line 7 phase II, line 8 phase II and phase III projects,
India NCRCTC project, Singapore Santosha platform door installation project, Colombia Bogota Metro Line 1 project, as well as a
number of orders for professional technical maintenance services for PSD metro projects. Among them, the order for the platform
screen door system of Bogota Metro Line 1 in Colombia is the first project of the Company in Latin America, as well as the first
rail transit project in Bogota, the capital of Colombia, which opens a new business territory for the Company. During the reporting
period, the Company's rail transit PSD industry had achieved an operating revenue of RMB300,269,800, an increase of 12.17%
from the same period last year, and an order reserve of RMB1,589,224,000, which was 5.29 times of the operating revenue. The
Company has been recognized by many owners during the reporting period, including Nanjing Metro Company, Fuzhou Metro
Group, Xi'an Rail Transit Group, Wuhan Metro Group, Hohhot Metro Company, etc. for its high-quality performance and
professional service, which demonstrates the owner's high recognition and affirmation of the Company.
②Create excellent projects with solid quality and advanced technology
The Company attaches great importance to technology accumulation and sustainable innovation, takes innovation as the
driving force of the company's sustainable development, accelerates scientific and technological innovation and achievement
transformation, and maintains its leadership position in the industry. The sea crossing section of Hong Kong East Rail line, Kuala
Lumpur MRT Line 2 and Fuzhou Metro Line 5 (phase I) with the Fangda platform screen door system was successfully opened to
traffic during the reporting period. One of these is the platform screen door system of rail transit in the sea crossing section of the
Hong Kong East Rail line, which completely took into account ergonomic aspects and carried out the reliability design of the
platform screen door system with big span and long platform. The combination of the passenger detection design of the threshold
pressure bar with the resolution of the reliability design issue of the safety circuit brought on by the pressure drop and the
realization of technical innovation are firsts in the sector. A significant building project under "the Belt and Road" initiative that
14
Interim Report 2022 of China Fangda Group Co., Ltd.
was finished in six years was the Kuala Lumpur MRT Metro Line 2 project. The project team of the company overcame a number
of challenging issues, including new construction and assembly processes and full-automatic software and hardware system
debugging, and stayed on-site during the height of the epidemic in Malaysia. This achievement fully guaranteed the high-quality
construction of the project and perfectly interpreted the power of "made in China." After the phase I and phase II projects of
Fuzhou Metro Line 1, Fuzhou Metro Line 5 is the third line of the Fangda rail transit platform door system that the company has
opened in Fuzhou, which demonstrates the high recognition of customers to the Company and the continuous improvement of
brand influence. In the future, the Company will continue to create excellent projects with solid quality and advanced technology.
(3) New energy industry
The Company has been practicing the concepts of low-carbon, energy saving, green and environmental protection. It is an
early developer and application of photovoltaic building integration (BIPV) and photovoltaic power generation system design,
manufacturing, integration and operation, and has mature technology. In China, the Company has completed the first batch of
integrated photovoltaic buildings (BIPV) and multiple distributed solar photovoltaic power stations. Jiangxi Pingxiang distributed
photovoltaic power station, Jiangxi Isuzu automobile parking lot photovoltaic power station in Nanchang City, and Songshan Lake
Base photovoltaic power station in Dongguan, Guangdong, have all operated efficiently, contributing to the Company's stable
profitability and cash flow.
(4) Real Estate
1. Changes of macroeconomic situation and industrial policy environment related to the real estate industry; industrial
development status and policies of the city where the Company's main projects are located, and its impact on the future operating
performance and profitability of the listed company;
A meeting of the Political Bureau of the CPC Central Committee was held on July 28, 2022. It was stated that it was
necessary to stabilize the real estate market, adhere to the positioning that houses are used for living rather than for speculation,
and make full use of the policy toolbox for the implementation of urban policies, support rigid and improving housing demand,
consolidate local government responsibilities, ensure housing delivery and stabilize the livelihood of the citizens. The supply and
demand sides of the real estate market are expected to improve in the second half of the year as well as the stabilization policies.
As large cities and key metropolitan areas expand, urban renewal, smart cities and other trends develop, the demand for industrial
upgrading, consumption upgrading and housing improvements will grow.
The Company's real estate projects are in Shenzhen and Nanchang. Shenzhen's market remains relatively concentrated in
terms of popularity and demand. Construction of the Guangdong Hong Kong Macao Bay area has been further promoted.
Shenzhen's strong development trend will be recognized by more investors as a special economic zone and a leading
demonstration area. In the long run, the first tier cities such as Shenzhen are short of land resources, the population will continue to
grow in the future, the real estate still has room for appreciation.
As a result of the epidemic and economic downturn, supply and demand in Nanchang's real estate market decreased
significantly in the first half of 2022, and transactions in the commercial market were slow. Under the influence of the real estate
market policies, the transaction volume is expected to increase in the second half of the year.
Affected by the macro-economy and the regulation of the real estate industry, the sales volume and business gross profit
margin of the Company's real estate sector will be affected to a certain extent, but it is expected to contribute profits to the
Company.
2. The Company's main business model, business project format, market position and competitive advantage, main risks and
countermeasures
The Company's real estate business mainly adopts the business model of self-development, partial sales and partial self-
supporting. At present, the Company develops, sells, and leases mainly office, commercial, and apartment properties. After years
of unremitting efforts, the Company has acquired a wealth of experience in real estate development and operation, as well as
operating and managing its commercial and residential properties through its own professional staff.
At present, the real estate projects operated by the Company are in Shenzhen and Nanchang.
15
Interim Report 2022 of China Fangda Group Co., Ltd.
Shenzhen is located in the core area of Guangdong, Hong Kong and Macao Dawan district.The Company's Shenzhen Fangda
Town project has a rapid sales and leasing rate and has been highly recognized by the Shenzhen market. At the end of the
reporting period, the sales rate of Shenzhen Fangda Town project was 96.28%, and the leasing rate of self owned properties was
84.86%. However, due to the large inventory of commercial office buildings in Nanchang and the downward trend of volume and
price, the sales has slowed down. At the end of the reporting period, the sale rate of Nanchang Fangda Center project was 30.23%,
and the occupancy rate of self-owned properties was 78.77%.
The Company's real estate industry will still face risks such as national macro policy regulation, market competition, and the
impact of the new crown epidemic in the future. The Company will comply with policy changes, continue to in-depth optimization
in brand building, marketing and promotion, reduce operational and management risks, and maintain the Company's steady
development.
3. New land reserve projects
Equity
Total land
Parcel or considerati
Land Land area Building Obtaining Interests price (ten
project Purpose on (ten
location (m2) area (m2) method percentage thousand
name thousand
yuan)
yuan)
None
4. Total land reserve
Total building area (10,000 Remaining building area
Project/region name Floor area (10,000 m2)
m2) (10,000 m2)
None
5. Main production development status
Accu
Estim
mulat
Total ated
Planni Area ed
Devel area total
Intere ng compl total
Projec Land Starti opme Comp Land compl invest
City/r Projec sts constr eted invest
t locati ng nt letion area eted ment
egion t form perce uction in this ment
name on time progre rate (m2) in this (in
ntage area phase (in
ss phase RMB
(m2) (m2) RMB
(m2) 10,00
10,00
0)
0)
Shenz
Office
hen No.2
Fangd comm May
Nansh Longz 100.0 100.0 35,39 212,4 217,7 258,5 283,6
a ercial 1, 100% 0
an hu 4th 0% 0% 7.60 00.00 63.69 00 00
Town compl 2014
Distri Road
ex
ct
No.15
16
Hong Ganji
gutan ang Office
Fangd
New North comm May
a 100.0 100.0 16,60 66,43 65,37 67,00 66,99
Distri Avenu ercial 1, 100% 0
Cente 0% 0% 8.55 2.61 6.94 0 2.35
ct, e compl 2018
r
Nanch Fangd ex
ang a
Cente
r
16
Interim Report 2022 of China Fangda Group Co., Ltd.
6. Main project sales
Amou
nt of Settle
Cumul Pre- pre- Settle ment
Cumul
ative sale sale ment amoun
Interes ative
Land Sellabl pre- (sales) (sales) area in t in
City/re Project Project ts Buildi settlem
locatio e area sale area in in the the this
gion name form percen ng area ent
n (m2) (sales) this current current period
tage area
area period period period (RMB
(m2)
(m2) (m2) (RMB (m2) 10,000
10,000 )
)
Shenz
Office
hen No.2
Fangd comm
Nansh Longz 100.00 212,40 93,086 89,621 3,797. 89,621 3,797.
a ercial 736.83 736.83
an hu 4th % 0 .25 .65 85 .65 85
Town compl
Distric Road
ex
t
No.15
16
Hongg
Ganjia
utan Office
ng
New Fangd comm
North 100.00 65,376 25,996 7,857. 7,857.
Distric a ercial 303.32 387.01 303.32 387.01
Avenu % .94 .84 71 71
t, Center compl
e
Nanch ex
Fangd
ang
a
Center
7. Main project lease
Interests Leasable area Cumulative Average lease
Project name Land location Project form
percentage (m2) leased area (m2) ratio
Shenzhen Commercial
Shenzhen
Nanshan and office 100.00% 95,293.23 80,868.23 84.86%
Fangda Town
District building
Shenzhen Shenzhen
Fangda Nanshan Office building 100.00% 17,432.38 14,219.73 81.57%
Building District
Jiangxi
Nanchang Nanchang,
Plant and office
Science and Jiangxi 100.00% 17,517.20 3,664.20 20.90%
building
Technology Province
Park
Jiangxi Nanchang, Commercial
Nanchang Jiangxi and office 100.00% 37,725.82 29,717.51 78.77%
Fangda Center Province building
8. First-level development of land
□ Applicable Inapplicable
9. Financing channel
Ending Financing cost Term structure
Financing
financing range / average
source Within 1 year 1-2 years 2-3 years Over 3 years
balance financing cost
The benchmark
Bank loan 136,850.00 7,000.00 10,550.00 21,200.00 98,100.00
interest rate of
17
Interim Report 2022 of China Fangda Group Co., Ltd.
loans in the
same period
shall be
adjusted
according to the
agreed
proportion
Total 136,850.00 7,000.00 10,550.00 21,200.00 98,100.00
10. Development strategy and operation plan in next year
Shenzhen's epidemic prevention remains stable and economic recovery is strong, and the original driving force of the industry
is strong. At the same time, the concept of Guangdong Hong Kong Macao Bay Area has matured, and the integration of Shenzhen
and Hong Kong is continuing, which contains huge investment potential. In the future, the Company will continue to expand the
brand effect, deepen the local market, and effectively improve the Company's operating performance.
The main task of the Company's real estate sector in 2022 is to promote the sales of Shenzhen Fangda Town project and
vigorously promote the sales of Nanchang Fangda Center project. In addition, the Company will integrate and optimize the
existing resources of the Company in accordance with the latest policies, as well as steadily promote the application and approval
of the Shenzhen Henggang Dakang project and the Shenzhen Fuyong Fang Da Bangshen urban renewal project.
11. Bank mortgage loan guarantee provided for commercial housing purchasers
Applicable □ Inapplicable
As of June 30, 2022, the balance of the Company's guarantee for commercial housing offenders due to bank mortgage loans
was RMB35,265,600.
12. Co-investment between Directors, supervisors and senior management and listed companies
□ Applicable Inapplicable
II. Core Competitiveness Analysis
(1) Smart curtain wall system and material
1. Advantages of technology and industry experience
Through over 30 years of hard work in the field of high-end smart curtain wall and the development of environmental
protection and energy-saving curtain wall products through technological innovation, the Company has grasped the development
trend of curtain wall industry in the process of meeting market demand, improved the competitiveness of the Company's products,
solutions and services, and accumulated rich experience in project design and implementation and well-known cases.
As the leading enterprise in the curtain wall industry, the Company took the lead in setting up enterprise postdoctoral
workstation, engineering technology center, Curtain Wall Research and Design Institute and other R&D institutions in the same
industry in China, and was selected as the "top 500 innovation index of Chinese listed companies" for three consecutive years. It
has created many firsts in the industry and is one of the preferred brands in the domestic high-end curtain wall system material
industry. The Company's subsidiaries engaged in the smart curtain wall system and material industry are all national high-tech
enterprises, two subsidiaries are selected as "specialized, special and innovative" enterprises, and many subsidiaries are recognized
as "Guangdong Intellectual Property Demonstration Enterprise", "Shenzhen Intellectual Property Advantage unit", "Jiangxi
enterprise technology center" and "Nanchang engineering technology research center". The Company's independent innovation
and continuous innovation have created the Company's leading technical level and manufacturing capacity.
2. Advantages of product service and refined management
With years of technical precipitation and experience accumulation, the Company's smart curtain wall system and material
industry has formed an overall solution integrating R&D, design, production, project management, construction and maintenance
services. The industry is complete and has strong comprehensive strength in terms of quality, cost and service.
18
Interim Report 2022 of China Fangda Group Co., Ltd.
The Company has vigorously promoted intelligent construction and fine management in various business modules,
effectively improved the quality of products and services and enhanced the competitiveness of the Company. BIM Technology,
PMS project management platform, MES production management system, VPO supply management platform and other
information management tools are applied to curtain wall design, manufacturing and construction management, combined with
cloud computing, big data, mobile application, Internet of things and other technologies to realize the rapid transmission and
sharing of information, collaborative application, open up various management modules, improve the scientificity and efficiency
of decision-making, speed up the response and execution ability of business, and improve the fine management.
3. Brand equity
Since its establishment, the company has been highly recognized by the industry and many professionals with its own product
and technical advantages and comprehensive service strength, and has a good reputation. The Company has won "National Quality
Award", "National Quality Engineering Award", Luban Award, Zhan Tianyou award, China Architectural Decoration Award and
more than 200 provincial and ministerial awards. Fangda trademark has been recognized as "China's well-known trademark" and
won the title of "international reputable brand". It has created thousands of landmark projects and has become one of the leading
brands in the field of high-end curtain wall in China.
4. Industrial layout advantages
In order to better serve the market and meet the growing demand for orders, after years of accumulation and continuous
investment in facilities and equipment, the curtain wall system and material industry of the Company has built a domestic
industrial layout with Shenzhen as the headquarters and production bases in Shanghai, Chengdu, Nanchang, Dongguan, Foshan
and other places. Among them, Dongguan Songshanhu base is one of the most modern high-end curtain wall system production
bases in the industry, It has industry-leading R&D, design, manufacturing and curtain wall system delivery capabilities. The
Company's production base continues to increase digital and intelligent construction, introduces intelligent equipment, and uses
Internet technology to track the Company's products and continuously improve efficiency. The layout of the production base
provides an important guarantee for improving the market share and comprehensive competitiveness.
5. Talent
The Company always adheres to the "people-oriented" talent concept, actively introduces and trains all kinds of professional
technology and management talents, and is committed to building an efficient management and operation team. After years of
development, the Company has an experienced senior management team and middle-level managers with strong execution ability,
as well as a complete talent training system and talent reserve. During the reporting period, we continuously optimized the
effective incentive and assessment system and implemented quantitative management. In order to meet the needs of the Company's
business development, the Company continued to introduce outstanding fresh graduates, build an industry university research
integration platform, promote school-enterprise cooperation and industry-university combination mechanism, and ensure that the
Company's scientific research strength in the field of high-end curtain wall is at the leading level in the industry. Over the years, it
has always paid attention to the cultivation of "craftsman spirit". It has held "Fangda Craftsman" skill competition every year and
"Fangda Lecture Hall" training from time to time, continuously improved the theoretical knowledge and operation skill level of
employees, created a skilled talent team with reasonable structure, exquisite technology and excellent style, cultivated a number of
"Shenzhen 100 excellent craftsmen", and has been rated as "Shenzhen craftsman cultivation demonstration unit" for many times.
(2) Rail transport screen door business
1. Technical advantage
The Company has always attached importance to technological innovation, took the lead in developing the rail transit PSD
system with independent intellectual property rights in China, broke the monopoly of foreign enterprises in the field of China's rail
transit PSD, and the product performance is at the international leading level. China's first industrial standard of platform screen
doors of urban rail transit prepared by the Company was implemented on March 1, 2007, filling the gap in this field in China and
having guiding significance for the development of platform screen doors of rail transit in China. In 2017, the Ministry of Housing
and Urban-Rural Development has initiated the revision of the industry standard for the City Rail Platform Screen Doors, the
19
Interim Report 2022 of China Fangda Group Co., Ltd.
Company continues to undertake the main editing tasks. The revised platform screen door of urban rail transit (CJ/T236-2022) has
been approved to be implemented from May 1, 2022, demonstrating Fangda's continuous comprehensive leading strength and
industry benchmark position in the field of urban rail transit equipment. As a single champion product of the manufacturing
industry, the company's "urban rail transit platform safety door" has been recognized by the Ministry of Industry and Information
Technology of the People's Republic of China, and it has successfully passed a joint safety assessment of the independent safety
assessment parties, Jiaotong Railway Inspection and Certification (Shanghai) Co., Ltd., obtaining the highest level of safety
integrity (SIL) 4 certificate from Lloyd's Quality Certification (Shanghai) Co., Ltd. The technological level has attained the highest
standard in the sector after meeting the technical requirements of unmanned GoA4. During the reporting period, the controlling
subsidiary Fangda Zhiyuan Technology was selected as the "specialized, special and innovative" enterprise in Shenzhen.
2. market advantage
The company is the pioneer and leader of the platform screen door system of rail transit in China, and its products have
covered 70% of the cities where the subway has been opened in China. Among the existing customer cities, the Company's
products have been applied to the platform screen doors of the first metro line in 12 cities. As part of the "Belt and Road
Initiative," the Company has successfully received important project orders in Singapore, Malaysia, Thailand, and other countries
and regions along the way. The Company won the first order for the Bogota Metro Line 1 project in Colombia during the reporting
period as a result of its extensive experience in overseas project implementation and strong market brand awareness. The
Company also successfully implemented the development concept of "going out" of Chinese equipment during the reporting
period. Nowadays, the recognition of Fangda brand overseas has been increasing, and it has become the largest manufacturer and
service provider of rail transit screen door system in the world.
The operation and maintenance of rail transit have high requirements for the safety and reliability of products and equipment.
The Company's leading technology, reliable product quality and efficient service have won a good market reputation, maintained a
stable cooperative relationship with customers and accumulated rich market resources.
3. Industry chain advantage
As the first enterprise to enter the metro screen door industry in China, the Company is able to provide R & D, design,
manufacturing, engineering construction, and technical services as part of the whole industry chain. A complete industrial chain
helps the Company to realize resource sharing at all stages and meet the market demand for specialized products and services,
thereby effectively reducing the Company's production and management costs and improving profitability and competitive
advantages.
With many domestic metro platform screen door systems entering the maintenance period, the Company actively expands the
industrial chain and takes the lead in developing Metro maintenance business in China. The intelligent maintenance management
system developed by the Company can count and analyze the operation status of site equipment in real time, remotely guide the
on-site technical service team, and provide professional technical support to customers in a timely and efficient manner.
(3) New energy industry
The Company's new energy industry mainly focuses on the development of new energy-saving technology applications such
as solar photovoltaic application and photovoltaic building integration (BIPV), and its business scope covers two major industries:
construction and photovoltaic power generation. The Company actively developed solar photovoltaic power generation curtain
wall system technology 20 years ago. It is one of the earliest enterprises in China that independently mastered and had independent
intellectual property rights to engage in the design, manufacturing and integration of solar photovoltaic building integration (BIPV)
system.
Distributed solar power PV power generation is closely related to the Company's curtain wall business. Part of the distributed
solar power PV systems are closely related to construction. Moreover, the Company has more than 20 years' experience in
electrical product integration. The Company also has more than 30 years' experience in construction management and has the
level-1 construction curtain wall engineering qualification and electrical installation engineering qualification.
(4) Real Estate
20
Interim Report 2022 of China Fangda Group Co., Ltd.
The Company is located in the core area of Dawan District, Guangdong, Hong Kong and Macao. It adopts differentiated
competition strategy and focuses on the development of urban renewal projects in Shenzhen. Benefiting from the dividend of
Shenzhen's rapid economic development and the opportunity of further promotion of Shenzhen-Hong Kong integration, it is
expected that the company's real estate business will contribute profits to the Company in the future.
III. Core business analysis
Overview
See I. Major businesses of the Company during the Report Period
Year-on-year changes in major financial data
In RMB
This report period Same period last year YOY change (%) Reason
Turnover 1,613,063,315.30 1,568,778,834.98 2.82%
Operating cost 1,259,515,842.60 1,208,641,803.18 4.21%
Sales expense 23,296,105.78 25,434,914.81 -8.41%
Administrative expense 74,193,251.57 69,502,453.93 6.75%
Financial expenses 39,629,782.88 46,837,312.30 -15.39%
Income tax expenses 13,005,121.74 13,936,493.66 -6.68%
R&D investment 72,809,311.17 78,645,594.86 -7.42%
Mainly due to the
increase of cash flow
Cash flow generated by -
from real estate
business operations, 306,580,793.04 -500,924,545.00 38.80%
business operating
net
activities compared
with last year
Cash flow generated by
investment activities, -123,073,771.02 -120,811,183.94 -1.87%
net
Net cash flow
generated by financing 127,563,558.23 181,319,639.10 -29.65%
activities
Mainly due to the
improvement of net
Net increase in cash cash flow from
-298,333,058.20 -441,087,443.61 32.36%
and cash equivalents operating activities
compared with last
year
mainly due to the
decrease in land
Taxes and surcharges 23,203,954.56 35,853,693.88 -35.28%
appreciation tax in the
real estate business
Mainly due to the
provision for
Investment impairment
-27,659,612.75 3,466,913.89 -897.82% impairment of contract
loss ("-" for loss)
assets in the current
period
Major changes in profit composition or sources during the report period
□ Applicable Inapplicable
The profit composition or sources of the Company have remained largely unchanged during the report period.
21
Interim Report 2022 of China Fangda Group Co., Ltd.
Turnover composition
In RMB
This report period Same period last year YOY change (%)
Proportion in Proportion in
Amount operating costs Amount operating
(%) costs (%)
Total turnover 1,613,063,315.30 100% 1,568,778,834.98 100% 2.82%
Industry
Metal production 1,150,768,372.43 71.34% 1,097,171,007.07 69.94% 4.89%
Railroad industry 300,269,751.24 18.61% 267,687,038.55 17.06% 12.17%
Real estate 144,893,896.06 8.98% 188,235,871.36 12.00% -23.03%
New energy
8,159,691.65 0.51% 8,323,350.81 0.53% -1.97%
industry
Others 8,971,603.92 0.56% 7,361,567.19 0.47% 21.87%
Product
Curtain wall system
1,150,768,372.43 71.34% 1,097,171,007.07 69.94% 4.89%
and materials
Subway screen
300,269,751.24 18.61% 267,687,038.55 17.06% 12.17%
door and service
Real estate lease
144,893,896.06 8.98% 188,235,871.36 12.00% -23.03%
and sales
PV power
8,159,691.65 0.51% 8,323,350.81 0.53% -1.97%
generation products
Others 8,971,603.92 0.56% 7,361,567.19 0.47% 21.87%
District
In China 1,486,925,226.37 92.18% 1,465,806,008.64 93.44% 1.44%
Out of China 126,138,088.93 7.82% 102,972,826.34 6.56% 22.50%
Industries, products or districts that take more than 10% of the Company's business turnover or profit
Applicable □ Inapplicable
In RMB
Year-on-year Year-on-
Year-on-year
Gross change in year change
Turnover Operating cost change in
margin operating in operating
gross margin
revenue costs
Industry
Metal
1,150,768,372.43 970,430,527.24 15.67% 4.89% 3.18% 1.39%
production
Railroad
300,269,751.24 235,598,732.98 21.54% 12.17% 25.22% -8.18%
industry
Real estate 144,893,896.06 49,274,174.34 65.99% -23.03% -35.19% 6.39%
Product
Curtain wall
system and 1,150,768,372.43 970,430,527.24 15.67% 4.89% 3.18% 1.39%
materials
Subway screen
door and 300,269,751.24 235,598,732.98 21.54% 12.17% 25.22% -8.18%
service
Real estate
144,893,896.06 49,274,174.34 65.99% -23.03% -35.19% 6.39%
lease and sales
District
In China 1,486,925,226.37 1,155,521,680.35 22.29% 1.44% 2.80% -1.02%
22
Interim Report 2022 of China Fangda Group Co., Ltd.
Main business statistics adjusted in the recent one year with the statistics criteria adjusted in the report period
□ Applicable Inapplicable
IV. Non-core business analysis
Applicable □ Inapplicable
In RMB
Whether
Amount Profit percentage Reason
continuous
Investment income 4,595,678.43 3.61% No
Gain/loss caused by
1,180,840.01 0.93% No
changes in fair value
Provision for impairment of
Assets impairment -27,659,612.75 -21.72% No
contract assets
Non-operating revenue 446,386.82 0.35% No
Non-business expenses 2,578,001.31 2.02% Mainly charity donation No
Reversed bad debt reserves
Credit impairment loss 25,016,298.34 19.64% No
of accounts receivable
V. Assets and Liabilities
1. Major changes in assets composition
In RMB
End of the report period End of last year
Proportion Change (% ) Notes
Proportion in
Amount in total Amount
total assets
assets
Monetary
1,031,315,109.82 8.31% 1,287,563,759.32 10.50% -2.19%
capital
Account
555,641,568.67 4.48% 556,453,824.20 4.54% -0.06%
receivable
Contract assets 2,047,054,849.24 16.49% 1,782,947,673.13 14.54% 1.95%
Inventory 718,612,534.55 5.79% 733,280,924.98 5.98% -0.19%
Investment real
5,763,260,414.20 46.43% 5,765,352,393.13 47.02% -0.59%
estate
Long-term
share equity 55,185,971.99 0.44% 55,218,946.14 0.45% -0.01%
investment
Fixed assets 681,823,427.57 5.49% 663,414,297.61 5.41% 0.08%
Construction in
2,839,581.23 0.02% 11,642,444.21 0.09% -0.07%
process
Use right assets 25,002,936.05 0.20% 31,440,856.54 0.26% -0.06%
Short-term
1,622,891,137.62 13.08% 1,287,474,398.65 10.50% 2.58%
loans
Contract
172,157,564.27 1.39% 180,186,877.15 1.47% -0.08%
liabilities
23
Interim Report 2022 of China Fangda Group Co., Ltd.
Long-term
1,298,500,000.00 10.46% 1,333,500,000.00 10.88% -0.42%
loans
Lease liabilities 15,837,405.86 0.13% 19,152,093.31 0.16% -0.03%
2. Major foreign assets
□ Applicable Inapplicable
3. Assets and liabilities measured at fair value
Applicable □ Inapplicable
In RMB
Accumulative Impairm
Gain/loss Amount Amount
changes in fair ent
Opening caused by purchas sold in Other Closing
Item value accounting provide
amount changes in ed in the the change amount
into the income d in the
fair value period period
account period
Financial
assets
1.
Transaction
al financial
assets 25,135,241.
32,133,168.82
(excluding 89
derivative
financial
assets)
2.
Derivative 1,069,587.6
1,768,884.99
financial 2
assets
3.
4,263,500.0
Receivable 19,031,714.87
0
financing
4. Other
non-current 7,525,408.2
-20,657.41 7,504,750.83
financial 4
assets
5.
Investment 14,180,652.
-18,161,200.54 14,180,652.65
in other 65
equity tools
52,174,390.
Subtotal -20,657.41 -18,161,200.54 0.00 0.00 0.00 0.00 74,619,172.16
40
-
Investment 5,755,216,5 5,753,349,305.
1,068,328.60 67,142,127.21 2,935,60
real estate 80.10 19
3.51
-
5,807,390,9 5,827,968,477.
Total 1,047,671.19 48,980,926.67 2,935,60
70.50 35
3.51
Financial
11,871.20 1,840,691.89
liabilities
24
Interim Report 2022 of China Fangda Group Co., Ltd.
Other change
Other changes in investment real estate are RMB-2,935,603.51, which is caused by the change of some real estate from lease to
self use.
Major changes in the assets measurement property of the Company in the report period
□ Yes No
4. Right restriction of assets at the end of the period
Item Closing book value (RMB) Reason
Monetary capital 437,397,096.43 Various deposits
Notes receivable 34,787,478.67 Bills endorsed or discounted but not yet due
Account receivable 46,114,021.14 Loan by pledge
Fixed assets 45,126,026.61 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 Development
Equity pledge
200,000,000.00 held by the Company
Total 4,379,010,952.92
VI. Investment
1. General situation
□ Applicable Inapplicable
2. Major equity investment in the report period
□ Applicable Inapplicable
3. Major non-equity investment in the report period
□ Applicable Inapplicable
4. Financial assets investment
(1) Securities investment
□ Applicable Inapplicable
The Company made no investment in securities in the report period
2. Derivative investment
Applicable □ Inapplicable
In RMB10,000
Deriv Relati Relate Type Initial Start End Initial Amou Amou Impai Closin Propo Actua
25
Interim Report 2022 of China Fangda Group Co., Ltd.
ative onshi d amou date date invest nt in nt rment g rtion l
invest p transa nt ment this sold provis invest of gain/l
ment ction amou period in this ion (if ment closin oss in
operat nt period any) amou g the
or nt invest report
name ment period
amou
nt in
the
closin
g net
assets
in the
report
period
Shang
hai Shang
July June
Future hai 500.5 500.5 869.7 500.5 869.7
No No 27, 30, 0.00 0.16% 54.25
s alumi 5 5 1 5 1
2021 2022
Excha num
nge
Forwa
rd
May June
foreig 1,454. 1,454. 5,018. 3,301. 3,171.
Banks No No 18, 30, 0.00 0.57% 70.07
n 22 22 26 46 02
2021 2022
excha
nge
1,954. 1,954. 5,887. 3,802. 4,040. 124.3
Total -- -- 0.00 0.73%
77 77 97 01 73 2
Capital source Self-owned fund
Lawsuit (if any) None
Disclosure date of derivative
investment approval by the Board October 30, 2021
of Directors (if any)
The Company's aluminum futures hedging and foreign exchange derivatives trading
Risk analysis and control measures business are all derivatives investment business. The Company has established and
for the derivative holding in the implemented the "Derivatives Investment Business Management Measures" and
report period (including without "Commodity Futures Hedging Business Internal Control and Risk Management System". It
limitation market, liquidity, credit, has made clear regulations on the approval authority, business management, risk
operation and legal risks) management, information disclosure and file management of derivatives trading business,
which can effectively control the risk of the Company's derivatives holding positions.
Changes in the market price or fair
value of the derivative in the report
period, the analysis of the
derivative's fair value should Fair value of derivatives are measured at open prices in the open market
disclose the method used and
related assumptions and
parameters.
Material changes in the accounting
policies and rules related to the
None
derivative in the report period
compared to last period
Opinions of independent directors
on the Company's derivative None
investment and risk controlling
26
Interim Report 2022 of China Fangda Group Co., Ltd.
5. Use of raised capital
□ Applicable Inapplicable
The Company used no raised capital in the report period.
VII. Major assets and equity sales
1. Major assets sales
□ Applicable Inapplicable
The Company sold no assets in the report period.
2. Major equity sales
□ Applicable Inapplicable
VIII. Analysis of major joint stock companies
Applicable □ Inapplicable
Major subsidiaries and joint stock companies affecting more than 10% of the Company's net profit
In RMB
Main Registered Operation
Company Type Total assets Net assets Turnover Net profit
business capital profit
Curtain
Fangda Subsidiarie wall system 500,000,00 4,182,273,7 1,280,061,3 1,040,291,1 65,940,495. 60,187,739.
Jianke s and 0.00 58.31 75.25 57.14 17 84
materials
Subway
Fangda Subsidiarie 105,000,00 830,299,68 265,826,13 300,269,75 8,281,306.3 7,762,199.8
screen door
Zhiyuan s 0.00 0.04 6.06 1.24 9 2
and service
Subway
Kechuangy Subsidiarie 5,000,000.0 82,674,645. 65,637,844. 21,908,460. 20,786,945. 17,926,839.
screen door
uan s 0 52 54 00 47 02
and service
Fangda Subsidiarie 200,000,00 5,874,071,5 2,503,366,8 96,524,719. 26,191,115. 19,669,422.
Real estate
Property s 0.00 28.92 46.86 40 66 88
Acquisition and disposal of subsidiaries in the report period
□ Applicable Inapplicable
Major joint-stock companies
During the reporting period, the operating income of the Company is RMB1,040,291,157.14, of which the main business income
is RMB1,038,468,092.00, and the operating profit is RMB65,940,495.17, of which the main business profit is RMB64,742,287.55;
During the reporting period, the operating income of Kechuangyuan Company was RMB21,908,460.00, all of which were the
main business income, and the operating profit was RMB20,786,945.47, all of which were the main business profit; During the
reporting period, the operating income of Fangda Real Estate Company was RMB96,524,719.40, which was mainly from business.
The operating profit was RMB26,191,115.66, which was mainly from business.
IX. Structural entities controlled by the Company
□ Applicable Inapplicable
27
Interim Report 2022 of China Fangda Group Co., Ltd.
X. Risks facing the Company and measures
1. Risks of macro environment and policy changes
The Company's main business segments are closely related to macroeconomic and industrial policies and are greatly affected
by the overall macro environment. If there are adverse changes in the international and domestic macroeconomic environment,
slow economic development and reduced investment in fixed assets in the future, which will affect the demand of public building
curtain wall industry and rail transit equipment industry, or face industry depression or excessive competition, which will have an
adverse impact on the Company's future profitability, even project delay or suspension, deferred payment of projects under
construction, etc, thus affecting the Company's operating performance.
In order to better cope with the opportunities and challenges brought by changes in the economic environment and policies,
the Company will pay close attention to the changes in the macroeconomic and policy situation at home and abroad, timely adjust
the Company's business strategy, further enhance the product competitiveness and operation and management ability, improve the
market share, and deal with the risks brought by changes in the macro environment and policies.
2. Market competition risks
In the rail transit PSD market, the technology of other domestic manufacturers is becoming more and more mature, and the
company may face the risk of intensified market competition. If the Company cannot maintain a leading position in the market, it
will have a certain adverse impact on the development and benefits of the Company's rail transit PSD business. In this regard, the
Company will continue to adopt a stable business policy, improve the competitive advantage of products through technological
innovation and fine management, accelerate the return of funds, and improve the operation efficiency and market competitiveness
of the Company.
In this regard, the Company will continue to adopt a stable business policy, improve the competitive advantage of products
through technological innovation and fine management, accelerate the return of funds, and improve the operation efficiency and
market competitiveness of the Company. While consolidating the domestic market, the Company will step up the efforts in
exploring overseas markets, thus elevating our competitiveness in global markets and improving our resistance to risks.
3. Production and operation risks
The macro-economy and market demand have added to the fluctuation in prices of main raw materials and labor, affecting the
Company's profitability and creating additional production and operation risks for the Company.
The Company will hedge and transfer the price fluctuation risk of some raw materials by using futures product hedging,
negotiating with partners to supplement the contract amount, reasonably arranging material procurement plan and other measures;
The Company implements a strict supplier management mechanism, actively improves the scientific and technological level of
production management, increases technology research and development, is committed to process improvement, landing smart
factories, improves the automation and intelligence of production equipment, and reduces the loss of raw materials. The Company
will continue to promote intelligent and information construction system, widely apply new technologies and processes, strengthen
staff skill training, and improve quality and efficiency on the basis of ensuring safety.
4. Management risks
In recent years, with the expansion of the Company's business scale and the increase of the number of subsidiaries, the daily
management of the company is becoming more and more difficult, which may face the management risk of industrial scale
expansion. In addition, in recent years, the regulatory requirements for listed companies have been continuously improved and
deepened. The Company needs to further strengthen management, continue to promote management reform, constantly optimize
process and organizational structure, improve various rules and regulations, and vigorously introduce high-quality, highly skilled
and multidisciplinary technology and management talents, gradually optimize the allocation of human resources, optimize the
echelon structure, and effectively reduce the management risks brought by business development.
5. Uncertain risk of epidemic impact
28
Interim Report 2022 of China Fangda Group Co., Ltd.
The impact of the COVID-19 epidemic on the global social economy is still continuing. If the epidemic cannot be timely and
effectively contained for a long time, it will have an impact on the Company's external business development and internal
operation and management. Furthermore, it will pose many challenges and adverse effects on raw material supply, logistics and
transportation, marketing, personnel flow, project implementation, etc. It will adversely affect the Company's future business
performance due to the increase in cost and risk associated with enterprise operation and management. The Company will pay
close attention to the development of the epidemic, actively assess the impact on the Company's financial situation and operating
results, actively study and judge the market trend, adopt effective business strategies and response plans, vigorously prevent and
control capital chain risks, and strive to maintain stable operation.
29
Interim Report 2022 of China Fangda Group Co., Ltd.
Chapter IV Corporation Governance
I. Annual and extraordinary shareholder meetings held during the report period
1. Annual shareholder meeting during the report period
Participatio
Date of
Meeting Type n of Date Meeting resolution
disclosure
investors
The following proposals were considered and
adopted: 1. 2021 work report of the Board of
Directors; 2. 2021 work report of the Board of
Supervisors; 3. Full text and summary of 2021
2021 Annual Annual
April 19, annual report; 4. 2021 financial final accounts
Shareholder shareholders 24.47% April 20, 2022
2022 report; 5. 2021 profit distribution plan; 6.
Meeting ' meeting
Proposal on applying for credit and providing
guarantee to banks and other financial
institutions; 7. Proposal on the engagement of
audit institutions for 2022.
2. Shareholders of preference shares of which voting right resume convening an extraordinary
shareholders' meeting
□ Applicable Inapplicable
II. Changes in the Directors, Supervisors and Senior Executives
□ Applicable Inapplicable
The Company's Directors, supervisors and senior management have remained unchanged during the report period. For details,
please refer to the 2021 annual report.
III. Profit Distribution and Reserve Capitalization in the Report Period
□ Applicable Inapplicable
The Company distributed no cash dividends or bonus shares and has no reserve capitalization plan.
IV. Share incentive schemes, staff shareholding program or other incentive plans
□ Applicable Inapplicable
There is no share incentive schemes, staff shareholding program or other incentive plans in the report period
30
Interim Report 2022 of China Fangda Group Co., Ltd.
V. Environmental and social responsibility
1. Environmental protection
Whether the Company and its subsidiaries are key polluting companies disclosed by the environmental protection authority
□ Yes No
Administrative penalties for environmental problems during the reporting period
Impact on the
Rectification
Company or production and
Reason Violations Punishment result measures of the
subsidiary operation of listed
Company
companies
None None None None None None
Refer to other environmental information disclosed by key pollutant discharge units
None
Measures and effects taken to reduce carbon emissions during the reporting period
Applicable □ Inapplicable
The Company pays attention to global climate change and actively explores the path of environmental friendliness and
enterprise development. Since its inception, the Company has been accompanied by a sense of mission of green environmental
protection. The Company's smart curtain wall, photovoltaic building integration (BIPV) project, rail transit PSD system, solar
photovoltaic power station and other industries have environmental protection genes. Combined with the characteristics of the
industry, the Company integrates the concept of environmental protection into technological innovation, successively develops
national and provincial key environmental protection new products such as ventilated and photovoltaic curtain walls, nano self-
cleaning and fireproof honeycomb aluminum composite plates, and takes the lead in developing the subway PSD system with
independent intellectual property rights in China. The Company's "full height open platform screen door of rail transit" technology
has reduced the energy consumption of air conditioning and ventilation system by more than 20%, and the products of double-
layer breathing curtain wall system save energy by more than 30% compared with the traditional curtain wall. The Company's new
energy industry generated 8.23 million degrees of solar photovoltaic power in the first half of 2022, reducing carbon dioxide
emissions by nearly 8,400 tons, contributing to the goal of "carbon peak, carbon neutralization".
The Company has established an environmental management system, and many subordinate companies have passed the
ISO14001 environmental system certification. In their daily production and operation, they seriously implement the environmental
protection laws and regulations such as the environmental protection law of the People's Republic of China, the water pollution
prevention and control law of the People's Republic of China, the air pollution prevention and control law of the People's Republic
of China, and the solid waste pollution prevention and control law of the People's Republic of China. The corporation and its
affiliates are not among the significant pollutant emission units listed by the environmental protection department during the
reporting period.
The Company advocates energy conservation and emission reduction, safety and environmental protection, and adheres to the
comprehensive implementation of "green environmental protection" measures from the aspects of infrastructure construction,
waste water treatment, lighting and greening of office areas, so as to create a good, green and healthy office environment. The
Company advocates green office, reduces the standby energy consumption of air conditioners, computers and other electrical
equipment, and reasonably sets the air conditioning temperature in the office area to save energy. At the same time, the Company
has established a combination of electronic, networked and remote office mode, promoted "paperless office" by improving OA
system and ERP system, and actively used video conference and teleconference to replace on-site meetings, so as to improve work
efficiency and reduce various costs of on-site meetings.
31
Interim Report 2022 of China Fangda Group Co., Ltd.
Reasons for non-disclosure of other environmental information
During the reporting period, the listed company and its subsidiaries were not key pollutant discharge units announced by the
environmental protection department, and there were no administrative penalties for environmental problems.
2. Social responsibilities
Over the years, while creating enterprise value, the Company has adhered to its original mission, fulfilled the social
responsibilities of listed companies, actively participated in the action of "ten thousand enterprises prospering ten thousand
villages", successively carried out industrial assistance in Guangdong, Jiangxi, Tibet and other places, helped poor areas to grow
cash crops such as agrocybe cylindracea and lilies according to local conditions, and built greenhouse photovoltaic power stations,
distributed photovoltaic power stations and other rural industrial "hematopoietic" projects. Our efforts have created new driving
forces for rural economic development and helped build a beautiful new era village, which has prosperous industries, ecological
livability, a civilized rural style, effective governance, and a rich cultural heritage. All walks of life have praised us for the good
social results we have achieved.
During the reporting period, the Company's funds for social public welfare undertakings totaled RMB2,338,000. To support
the village's collective breeding industry project, RMB1.6 million was donated to Miaoqian village, Ji'an County, Jiangxi Province,
the old revolutionary base. It played an important role in stimulating the revitalization of the village's industrial sector and the
strengthening of its collective economy, alleviating poverty, increasing farmers' incomes, and contributing to rural revitalization.
The value of anti-epidemic materials donated by frontline anti-epidemic personnel amounted to RMB651,000.
32
Interim Report 2022 of China Fangda Group Co., Ltd.
Chapter VI Significant Events
I. Commitments that have been fulfilled and not fulfilled by actual controller, shareholders,
related parties, acquirers of the Company
□ Applicable Inapplicable
There is no commitment that has not been fulfilled by actual controller, shareholders, related parties, acquirers of the Company
II. Non-operating capital use by the controlling shareholder or related parties in the
reporting term
□ Applicable Inapplicable
The controlling shareholder and its affiliates occupied no capital for non-operating purpose of the Company during the report
period.
III. Incompliant external guarantee
□ Applicable Inapplicable
The Company made no incompliant external guarantee in the report period.
IV. Engaging and dismissing of CPA
Whether the interim financial report is audited
□ Yes No
The interim report for H1 2015 has not been audited.
V. Statement of the Board on the “non-standard auditors' report” issued by the CPA on the
current report period
□ Applicable Inapplicable
VI. Statement of the Board of Directors on the Non-standard Auditor's Report for H1 2014
□ Applicable Inapplicable
VII. Bankruptcy and capital reorganizing
□ Applicable Inapplicable
The Company has no bankruptcy or reorganization events in the report period.
VIII. Lawsuit
Significant lawsuit and arbitration
□ Applicable Inapplicable
The Company has no significant lawsuit or arbitration affair in the report period.
33
Interim Report 2022 of China Fangda Group Co., Ltd.
Other lawsuit
Applicable □ Inapplicable
Wheth
er Index
estima Enforcement of Date for
Progress of Litigation
Basic information of Amount (in ted litigation of inform
litigation (arbitration) hearing
litigation (arbitration) RMB10,000) liabilit (arbitration) disclo ation
(arbitration) results and impact
ies are judgment sure disclos
forme ure
d
The case has not
Summary of matters
According to been closed yet, and
in which the Some are being
the litigation it is not expected to
subsidiaries as the implemented,
process, some have a significant
plaintiff fail to meet 11,595.09 No some have not
have been impact on the
the disclosure yet been
tried and some company's
standards of major implemented
are under trial operation and
litigation (arbitration)
financial status
The case has not
Summary of matters
been closed yet, and
where the Company
it is not expected to
and its subsidiaries as
Not have a significant
defendants fail to 4,287.58 No Not completed
completed impact on the
meet the disclosure
company's
standards of major
operation and
litigation (arbitration)
financial status
IX. Punishment and rectification
□ Applicable Inapplicable
X. Credibility of the Company, controlling shareholder and actual controller
Applicable □ Inapplicable
The Company and its controlling shareholders and actual controllers do not fail to perform the effective judgment of the court, and
the debts with a large amount are not paid off when due.
XI. Material related transactions
1. Related transactions related to routine operation
□ Applicable Inapplicable
The Company made no related transaction related to daily operating in the report period.
2. Related transactions related to assets transactions
□ Applicable Inapplicable
The Company made no related transaction of assets or equity requisition and sales in the report period.
34
Interim Report 2022 of China Fangda Group Co., Ltd.
3. Related transactions related to joint external investment
□ Applicable Inapplicable
The Company made no related transaction of joint external investment in the report period.
4. Related credits and debts
□ Applicable Inapplicable
The Company had no related debt in the report period.
5. Transactions with related financial companies
□ Applicable Inapplicable
There is no deposit, loan, credit or other financial business between the company and the related financial company.
6. Transactions between financial companies controlled by the company and related parties
□ Applicable Inapplicable
There is no deposit, loan, credit or other financial business between the financial company controlled by the company and its
related parties.
7. Other major related transactions
□ Applicable Inapplicable
The Company has no other significant related transaction in the report period.
XII. Significant contracts and performance
1. Asset entrusting, leasing, contracting
(1) Asset entrusting
□ Applicable Inapplicable
The Company made no custody in the report period.
(2) Contracting
□ Applicable Inapplicable
The Company made no contract in the report period
(3) Leasing
□ Applicable Inapplicable
There is no leasing during the reporting period.
2. Significant guarantee
Applicable □ Inapplicable
35
Interim Report 2022 of China Fangda Group Co., Ltd.
In RMB10,000
External guarantees made by the Company and subsidiaries (exclude those made for subsidiaries)
Actual
Guarant
Date of Guarante amount Type of Counter
ee Actual Collatera Complet Related
disclosur e of guarante guarante Term
provided date l (if any) ed or not party
e amount guarante e e (if any)
to
e
None
Guarantee provided to subsidiaries
Actual
Guarant
Date of Guarante amount Type of Counter
ee Actual Collatera Complet Related
disclosur e of guarante collatera Term
provided date l ed or not party
e amount guarante e l
to
e
since
engage
Joint and of
several contract
Fangda March July 27,
50,000 50,000 liability None None to 3 No Yes
Jianke 23, 2021 2021
guarante years
e upon
due of
debt
since
engage
Joint and of
several contract
Fangda March March 9, 20,507.7
24,000 liability None None to 3 No Yes
Jianke 23, 2021 2022 8
guarante years
e upon
due of
debt
since
engage
Joint and of
several contract
Fangda April 28, January
30,000 3,925.61 liability None None to 3 No Yes
Jianke 2020 29, 2021
guarante years
e upon
due of
debt
since
engage
Joint and of
Septemb several contract
Fangda March 26,435.7
40,000 er 18, liability None None to 3 No Yes
Jianke 23, 2021 1
2021 guarante years
e upon
due of
debt
since
Joint and
engage
several
Fangda March August of
30,000 19,925.7 liability None None No Yes
Jianke 23, 2021 18, 2021 contract
guarante
to 3
e
years
36
Interim Report 2022 of China Fangda Group Co., Ltd.
upon
due of
debt
since
engage
Joint and of
Novemb several contract
Fangda March 15,818.1
25,000 er 17, liability None None to 3 No Yes
Jianke 23, 2021 4
2021 guarante years
e upon
due of
debt
since
engage
Joint and of
several contract
Fangda March May 23,
15,000 7,000 liability None None to 2 No Yes
Jianke 30, 2022 2022
guarante years
e upon
due of
debt
since
engage
Joint and of
Decemb several contract
Fangda March 27,946.2
48,000 er 17, liability None None to 3 No Yes
Jianke 23, 2021 5
2021 guarante years
e upon
due of
debt
since
engage
Joint and of
Decemb several contract
Fangda March
60,000 er 21, 4,170.55 liability None None to 3 No Yes
Jianke 23, 2021
2021 guarante years
e upon
due of
debt
since
engage
Fangda
Joint and of
Jianke
Decemb several contract
and January
14,000 er 18, 7,739.91 liability None None to 3 No Yes
Fangda 30, 2019
2019 guarante years
Zhichua
e upon
ng
due of
debt
since
engage
Joint and of
several contract
Fangda March July 7, 12,947.5
40,000 liability None None to 3 No Yes
Zhiyuan 23, 2021 2021 5
guarante years
e upon
due of
debt
37
Interim Report 2022 of China Fangda Group Co., Ltd.
since
engage
Joint and of
several contract
Fangda March March 9,
15,000 2,602.45 liability None None to 3 No Yes
Zhiyuan 23, 2021 2022
guarante years
e upon
due of
debt
since
engage
Joint and of
several contract
Fangda April 28, January
20,000 391.3 liability None None to 3 No Yes
Zhiyuan 2020 29, 2021
guarante years
e upon
due of
debt
since
engage
Joint and of
Septemb several contract
Fangda March
15,000 er 28, 5,598.64 liability None None to 3 No Yes
Zhiyuan 23, 2021
2021 guarante years
e upon
due of
debt
since
engage
Joint and of
several contract
Fangda March May 23,
10,000 liability None None to 2 No Yes
Zhiyuan 30, 2022 2022
guarante years
e upon
due of
debt
since
engage
Joint and of
several contract
Fangda March August
5,000 5,000 liability None None to 3 No Yes
Zhiyuan 23, 2021 12, 2021
guarante years
e upon
due of
debt
since
engage
Joint and of
Septemb several contract
Kechuan March
1,000 er 30, 1,000 liability None None to 3 No Yes
gyuan 23, 2021
2021 guarante years
e upon
due of
debt
Joint and since
Fangda
March July 30, several engage
New 6,500 2,895.66 None None No Yes
23, 2021 2021 liability of
Material
guarante contract
38
Interim Report 2022 of China Fangda Group Co., Ltd.
e to 3
years
upon
due of
debt
since
engage
Joint and of
Fangda several contract
March April 20,
New 10,000 2,161.12 liability None None to 2 No Yes
30, 2022 2022
Material guarante years
e upon
due of
debt
since
engage
Yes, the
Joint and of
pledge is
Decemb several contract
Fangda February 100%
er 4, 135,000 91,000 liability None to 2 No Yes
Property 25, 2020 equity of
2019 guarante years
Fangda
e upon
Property
due of
debt
since
engage
Joint and of
Decemb several contract
Fangda April 28,
47,000 er 16, 45,850 liability None None to 3 No Yes
Property 2020
2020 guarante years
e upon
due of
debt
since
engage
Joint and of
several contract
Fangda March June 1,
7,000 3,740.09 liability None None to 3 No Yes
Zhijian 30, 2022 2022
guarante years
e upon
due of
debt
since
engage
Joint and of
several contract
Fangda March May 10,
600 184.63 liability None None to 3 No Yes
Yunzhu 30, 2022 2022
guarante years
e upon
due of
debt
Total of guarantee to Total of guarantee to
subsidiaries subsidiaries actually
452,100 239,133.70
approved in the occurred in the
report term (B1) report term (B2)
Total of guarantee to Total of balance of
subsidiaries 648,100 guarantee actually 356,841.08
approved as of the provided to the
39
Interim Report 2022 of China Fangda Group Co., Ltd.
report term (B3) subsidiaries as of
end of report term
(B4)
Guarantee provided to subsidiaries
Actual
Guarant
Date of Guarante amount Type of Counter
ee Actual Collatera Complet Related
disclosur e of guarante guarante Term
provided date l (if any) ed or not party
e amount guarante e e (if any)
to
e
None
Total of guarantee provided by the Company (total of the above three)
Total of guarantee Total of guarantee
approved in the occurred in the
452,100 239,133.70
report term report term
(A1+B1+C1) (A2+B2+C2)
Total of guarantee Total of guarantee
approved as of end occurred as of the
648,100 356,841.08
of report term end of report term
(A3+B3+C3) (A4+B4+C4)
Percentage of the total guarantee occurred
63.92%
(A4+B4+C4) on net asset of the Company
Including:
Guarantee provided directly or indirectly to
objects with over 70% of liability on asset 5,056.77
ratio (E)
Amount of guarantee over 50% of the net
77,712.02
asset (F)
Total of the above 3 (D+E+F) 77,712.02
For the unexpired guarantee contract, the
guarantee liability has occurred during the
reporting period or there is evidence that it is None
possible to bear joint and several repayment
liability
Statement of external guarantees violating
None
the procedure
3. Entrusted wealth management
Applicable □ Inapplicable
In RMB10,000
Accrued
impairment
Due balance to be amount of overdue
Type Source of fund Amount Undue balance
recovered unrecovered
financial
management
Bank financial
Self-owned fund 49,840.08 3,213.32 0 0
products
Total 49,840.08 3,213.32 0 0
Specific circumstances of high-risk entrusted financing with large individual amount or low security, poor liquidity, and no cost
40
Interim Report 2022 of China Fangda Group Co., Ltd.
protection
□ Applicable Inapplicable
Entrusted financial management expected to fail to recover the principal or likely result in impairment
□ Applicable Inapplicable
4. Other significant contract
□ Applicable Inapplicable
The Company entered into no other significant contract in the report.
13. Other material events
Applicable □ Inapplicable
1. According to the Company's development strategy and in combination with the development needs of the holding
subsidiary Fangda Zhichuang Technology rail transit PSD system industry, the board of directors of the Company agreed to plan
the domestic listing of Fangda Zhichuang Technology, and authorized the Company and Fangda Zhichuang Technology
management to start the planning of the domestic listing of Fangda Zhichuang Technology. On May 14, 2021, the company
disclosed the suggestive announcement on Authorizing the management of the Company to start the planning of domestic listing
of spin off holding subsidiaries. As of the disclosure date of this report, Fangda Zhichuang Technology has completed the joint-
stock transformation of the Company and has been renamed "Fangda Zhiyuan Technology Co., Ltd.". On August 26, 2022, the
15th meeting of the ninth Board of Directors of the Company deliberated and approved the proposal on the initial public offering
and listing on the growth enterprise market of Fangda Zhiyuan Technology Co., Ltd., a subsidiary of the Company, and made an
announcement on the designated information disclosure media on August 30, 2022. As for the follow-up work of the listing of the
split holding subsidiary, the Company will perform the information disclosure obligation according to the progress of the project.
2. On Octber 22, 2021, the Company signed the cooperation framework agreement on Wan'an Fangda photovoltaic building
integration (BIPV) and distributed photovoltaic power generation project with the People's Government of Wan'an County, Jiangxi
Province, to develop photovoltaic building integration (BIPV) and distributed photovoltaic power generation projects within the
agreed scope of Wan'an county. On October 25, 2021, the Company disclosed the announcement on signing the cooperation
framework agreement of Wan'an Fangda photovoltaic building integration (BIPV) and distributed photovoltaic power generation
project, and communicated and discussed specific matters. Due to the objective conditions failing to meet the company's
requirements, after careful consideration and comprehensive evaluation, based on commercial considerations, the Company will
not continue to promote the relevant matters of the "Wan'an Fangda photovoltaic building integration (BIPV) and distributed
photovoltaic power generation project cooperation framework agreement".
XIV. Material events of subsidiaries
□ Applicable Inapplicable
41
Interim Report 2022 of China Fangda Group Co., Ltd.
Chapter VII Changes in Share Capital and Shareholders
I. Changes in shares
1. Changes in shares
In share
Before the change Change (+,-) After the change
Issued Transferre
Proportio Bonus Proportio
Quantity new d from Others Subtotal Quantity
n shares n
shares reserves
I. Shares
with trade
restriction 2,302,093 0.21% 1,537,200 1,537,200 3,839,293 0.36%
condition
s
1.
State-
owned
shares
2.
State-
owned
legal
person
shares
3.
Other
2,302,093 0.21% 1,537,200 1,537,200 3,839,293 0.36%
domestic
shares
Inclu
ding:
Shares
held by
domestic
legal
persons
Dom
estic
natural 2,302,093 0.21% 1,537,200 1,537,200 3,839,293 0.36%
person
shares
4.
Shares
held by
foreign
investors
Inclu
ding:
Shares
held by
42
Interim Report 2022 of China Fangda Group Co., Ltd.
foreign
legal
persons
Dom
estic
natural
person
shares
II.
1,071,572 - - 1,070,034
Unrestrict 99.79% 99.64%
,134 1,537,200 1,537,200 ,934
ed shares
1.
Common 677,413,3 - - 675,876,1
63.08% 62.94%
shares in 79 1,537,200 1,537,200 79
RMB
2.
Foreign
394,158,7 394,158,7
shares in 36.71% 36.70%
55 55
domestic
market
3.
Foreign
shares in
overseas
market
4.
Others
III. Total
1,073,874 1,073,874
of capital 100.00% 0 0 100.00%
,227 ,227
shares
Reasons
Applicable □ Inapplicable
During the reporting period, Mr. Xiong Jianming, the chairman of the company, increased his holdings of 2,049,600 RMB
ordinary shares (A shares) of the Company, so the Company's shares with limited sales conditions increased by 1,537,200 shares
and shares with unlimited sales conditions decreased by 1,537,200 shares.
Approval of the change
□ Applicable Inapplicable
Share transfer
□ Applicable Inapplicable
Progress in the implementation of share repurchase
□ Applicable Inapplicable
Progress in the implementation of the reduction of shareholding shares by means of centralized bidding
□ Applicable Inapplicable
Impacts on financial indicators including basic and diluted earnings per share, net assets per share attributable to common
shareholders of the Company in the most recent year and period
□ Applicable Inapplicable
Others that need to be disclosed as required by the securities supervisor
43
Interim Report 2022 of China Fangda Group Co., Ltd.
Applicable □ Inapplicable
On May 10, 2022, the Company issued the voluntary announcement on the increase of the
Company's shares held by the actual controller and the Company under its control on
www.cninfo.com.cn.
2. Changes in conditional shares
Applicable □ Inapplicable
In share
Conditional
Conditional
Shareholder shares at Released this Increased this Reason of Date of
shares at end of
name beginning of period period condition releasing
the period
the period
25% of the
annual
Increase of
Xiong Jianming 2,295,493 0 1,537,200 3,832,693 shareholding is
shareholding
released from
the sale
Total 2,295,493 0 1,537,200 3,832,693 -- --
II. Share placing and listing
□ Applicable Inapplicable
III. Shareholders and shareholding
In share
Number of shareholders Number of shareholders of preferred
of common shares at the 57,836 stocks of which voting rights recovered 0
end of the report period in the report period (if any)
Shareholders holding 5% of the Company's common shares or top-10 shareholders
Number of Pledge, marking or
common freezing
Change in Unconditio
Shareholdi shares held Conditional
Name of Nature of the nal
ng at the end common
shareholder shareholder reporting common Share
percentage of the shares Quantity
period shares status
report
period
Shenzhen
Banglin Domestic
Technologi non-state 119,332,84 119,332,84
11.11% - -
es legal 6 6
Developme person
nt Co., Ltd.
Shengjiu Foreign
108,579,31 108,579,31
Investment legal 10.11% 717,214 -
8 8
Ltd. person
Domestic
Fang Wei 3.03% 32,543,178 -365,000 - 32,543,178
natural
44
Interim Report 2022 of China Fangda Group Co., Ltd.
person
Gong Qing
Cheng Shi
Li He
Investment Domestic
Manageme non-state
1.48% 15,860,609 - - 15,860,609
nt legal
Partnership person
Enterprise
(limited
partner)
VANGUA
RD
EMERGIN
Foreign
G
legal 0.55% 5,943,512 -369,171 - 5,943,512
MARKET
person
S STOCK
INDEX
FUND
VANGUA
RD
TOTAL
Foreign
INTERNA
legal 0.54% 5,797,239 -450,501 - 5,797,239
TIONAL
person
STOCK
INDEX
FUND
Shenwan
Hongyuan
Foreign
Securities
legal 0.51% 5,508,790 -272,510 - 5,508,790
(Hong
person
Kong) Co.,
Ltd.
Domestic
Xiong
natural 0.48% 5,110,257 2,049,600 3,832,693 1,277,564
Jianming
person
Domestic
Qu Chunlin natural 0.44% 4,737,100 - - 4,737,100
person
First
Foreign
Shanghai
legal 0.37% 3,938,704 - - 3,938,704
Securities
person
Limited
Strategic investors or
general legal persons
become the top 10
None
ordinary shareholders due
to the placement of new
shares (if any)
Among the shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu
Notes to top ten Investment Co., Ltd. are parties action-in-concert with Xiong Jianming. Shenzhen Banglin
shareholder relationship Technology Development Co., Ltd. and its parties action-in-concert and Gong Qing Cheng Shi Li He
or "action in concert" Investment Management Partnership Enterprise are related parties. The Company is not notified of
other action-in-concert or related parties among the other holders.
Description of the above
shareholders involved in None
entrusted / entrusted
45
Interim Report 2022 of China Fangda Group Co., Ltd.
voting right and waiver of
voting right
Special instructions on the
existence of special
repurchase account among None
the top 10 shareholders (if
any)
Top 10 shareholders of unconditional common shares
Category of shares
Name of shareholder Amount of common shares without sales restriction Category of
Quantity
shares
Shenzhen Banglin RMB
119,332,84
Technologies 119,332,846 common
6
Development Co., Ltd. shares
Domestical
ly listed 108,579,31
Shengjiu Investment Ltd. 108,579,318
foreign 8
shares
RMB
Fang Wei 32,543,178 common 32,543,178
shares
Gong Qing Cheng Shi Li
He Investment RMB
Management Partnership 15,860,609 common 15,860,609
Enterprise (limited shares
partner)
Domestical
VANGUARD
ly listed
EMERGING MARKETS 5,943,512 5,943,512
foreign
STOCK INDEX FUND
shares
Domestical
VANGUARD TOTAL
ly listed
INTERNATIONAL 5,797,239 5,797,239
foreign
STOCK INDEX FUND
shares
Domestical
Shenwan Hongyuan
ly listed
Securities (Hong Kong) 5,508,790 5,508,790
foreign
Co., Ltd.
shares
RMB
Qu Chunlin 4,737,100 common 4,737,100
shares
Domestical
First Shanghai Securities ly listed
3,938,704 3,938,704
Limited foreign
shares
Shanghai Silver Leaf
Investment Co., Ltd.-
RMB
Silver Leaf Quantitative
3,755,500 common 3,755,500
Hedging Phase 1 Private
shares
Securities Investment
Fund
No action-in-concert or Among the shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu
related parties among the Investment Co., Ltd. are parties action-in-concert. Shenzhen Banglin Technology Development Co.,
top10 unconditional Ltd. and Gong Qing Cheng Shi Li He Investment Management Partnership Enterprise are related
common share parties. The Company is not notified of other action-in-concert or related parties among the other
shareholders and between holders of current shares.
46
Interim Report 2022 of China Fangda Group Co., Ltd.
the top10 unconditional
common share
shareholders and the
top10 common share
shareholders
Top-10 common share Shanghai Yinye Investment Co., Ltd. - Yinye quantitative hedge phase 1 private securities
shareholders participating investment fund holds 3,755,500 shares of the company through the customer credit transaction
in margin trade (if any) guarantee securities account of Xiangcai Securities Co., Ltd.
Agreed re-purchasing by the Company's top 10 shareholders of common shares and top 10 shareholders of unconditional common
shares in the report period
□ Yes No
No agreed re-purchasing by the Company's top 10 shareholders of common shares and top 10 shareholders of unconditional
common shares in the report period
IV. Changes in shareholding of Directors, Supervisors and Senior Management
Applicable □ Inapplicable
Number
of Number Number
Number
Increased Decrease Number restricted of of
of shares
shares in d shares of shares shares restricted restricted
PRINTE held at
Position Job status this in this held at granted at shares shares
D NAME beginning
period period end of the the granted in granted at
of the
(share) (share) period beginning this the end of
period
of the period the period
period
Chairman
Xiong
, In office 3,060,657 2,049,600 0 5,110,257 0 0 0
Jianming
president
Total -- -- 3,060,657 2,049,600 0 5,110,257 0 0 0
V. Changes in controlling shareholder or actual controller
Changes in the controlling shareholder in the reporting period
□ Applicable Inapplicable
No change in the controlling shareholder in the report period
Change in the actual controller in the report period
□ Applicable Inapplicable
No change in the actual shareholder in the report period
47
Interim Report 2022 of China Fangda Group Co., Ltd.
Chapter VIII Preferred Shares
□ Applicable Inapplicable
The Company had no preferred share in the report period.
48
Interim Report 2022 of China Fangda Group Co., Ltd.
Chapter IX Information about the Company's Securities
□ Applicable Inapplicable
49
Interim Report 2022 of China Fangda Group Co., Ltd.
Chapter X Financial Statements
I. Auditor's report
Whether the interim report is audited
□ Yes No
The financial statements for H1 2014 have not been audited.
II. Financial statements
Unit for statements in notes to financial statements: RMB yuan
1. Consolidated Balance Sheet
Prepared by: China Fangda Group Co., Ltd.
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:
50
Interim Report 2022 of China Fangda Group Co., Ltd.
Loan and advancement provided
Debt investment
Other debt investment
Long-term receivables
Long-term share equity investment 55,185,971.99 55,218,946.14
Investment in other equity tools 14,180,652.65 14,180,652.65
Other non-current financial assets 7,504,750.83 7,525,408.24
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 liabilities 1,840,691.89 11,871.20
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
Including: interest payable
Dividend payable
Fees and commissions payable
Reinsurance fee payable
51
Interim Report 2022 of China Fangda Group Co., Ltd.
Liabilities held for sales
Non-current liabilities due in 1 year 81,922,494.73 78,418,557.76
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 the
5,582,581,119.09 5,524,039,886.94
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 interest 12,411,505,782.40 12,261,338,518.66
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua
2. Balance Sheet of the Parent Company
In RMB
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
52
Interim Report 2022 of China Fangda Group Co., Ltd.
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 investment 1,196,831,253.00 1,196,831,253.00
Investment in other equity tools 14,180,652.65 14,180,652.65
Other non-current financial assets 30,000,001.00 30,000,001.00
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
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
53
Interim Report 2022 of China Fangda Group Co., Ltd.
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 1 year 3,532,955.72 4,264,397.66
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
Total of owners' equity 2,384,333,401.73 2,443,918,977.55
Total of liabilities and owner's interest 3,670,731,974.85 3,078,897,004.59
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
54
Interim Report 2022 of China Fangda Group Co., Ltd.
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 cost 50,244,714.46 43,637,100.05
Interest income 19,918,179.96 6,976,161.44
Add: other gains 6,768,907.75 6,607,058.06
Investment gains (“-” for loss) 4,595,678.43 -532,743.54
Incl. Investment gains from
-32,974.15 -452,893.65
affiliates and joint ventures
Financial assets
derecognised as a result of amortized -1,859,057.85 -3,032,899.72
cost
Exchange gains ("-" for loss)
Net open hedge gains (“-” for
loss)
Gains from change of fair value
1,180,840.01 172,829.74
(“-“ for loss)
Credit impairment ("-" for loss) 25,016,298.34 19,853,416.06
Investment impairment loss ("-"
-27,659,612.75 3,466,913.89
for loss)
Investment gains ("-" for loss) -815,581.50 -2,027,304.03
3. Operational profit ("-" for loss) 129,501,597.03 131,403,232.20
Plus: non-operational income 446,386.82 1,201,106.46
Less: non-operational expenditure 2,578,001.31 3,480,374.51
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 the
112,685,273.77 111,488,701.33
owners of parent company
2. Minor shareholders' equity 1,679,587.03 3,698,769.16
55
Interim Report 2022 of China Fangda Group Co., Ltd.
6. After-tax net amount of other misc.
-427,835.59 -24,854.15
incomes
After-tax net amount of other misc.
-450,330.27 -1,460.74
incomes attributed to parent's owner
(1) Other misc. incomes that cannot
-229,678.59
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
-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
-450,330.27 228,217.85
re-classified into gain and loss
1. Other comprehensive income
that can be transferred to profit or loss
under the equity method
2. Fair value change of other debt
investment
3. Gains and losses from changes
in fair value of available-for-sale
financial assets
4. Other credit investment credit
impairment provisions
5. Cash flow hedge reserve -960,094.83 -785,690.88
6. Translation difference of
509,764.56 -495,193.96
foreign exchange statement
7. Others 1,509,102.69
After-tax net of other misc. income
22,494.68 -23,393.41
attributed to minority shareholders
7. Total of misc. incomes 113,937,025.21 115,162,616.34
Total of misc. incomes attributable to
112,234,943.50 111,487,240.59
the owners of the parent company
Total misc gains attributable to the
1,702,081.71 3,675,375.75
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
56
Interim Report 2022 of China Fangda Group Co., Ltd.
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 loss) 431,992.15 33,976,138.71
Incl. Investment gains from
affiliates and joint ventures
Financial assets
derecognised as a result of amortized
cost ("-" for loss)
Net open hedge gains (“-” for
loss)
Gains from change of fair value
(“-“ for loss)
Credit impairment ("-" for loss) -12,016.02 -3,239.44
Investment impairment loss ("-"
for loss)
Investment gains ("-" for loss) -26,723.69 -460.17
2. Operational profit (“-” for loss) -7,716,460.90 24,286,610.53
Plus: non-operational income 0.84 32,837.61
Less: non-operational expenditure 47,636.27 101,429.05
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 loss) -5,891,864.47 26,418,197.73
(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 misc.
1,509,102.69
incomes
(1) Other misc. incomes that cannot
be re-classified into gain and loss
1. Re-measure the change in the
defined benefit plan
2. Other comprehensive income
that cannot be transferred to profit or loss
under the equity method
3. Fair value change of
investment in other equity tools
4. Fair value change of the
Company's credit risk
5. Others
(2) Other misc. incomes that will be
1,509,102.69
re-classified into gain and loss
1. Other comprehensive income
that can be transferred to profit or loss
under the equity method
2. Fair value change of other debt
investment
57
Interim Report 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
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
1,404,641,263.99 1,573,340,053.10
and providing of services
Net increase of customer deposits and
capital kept for brother company
Net increase of loans from central
bank
Net increase of inter-bank loans from
other financial bodies
Cash received against original
insurance contract
Net cash received from reinsurance
business
Net increase of client deposit and
investment
Cash received as interest, processing
fee, and commission
Net increase of inter-bank fund
received
Net increase of repurchasing business
Net cash received from trading
securities
Tax refunded 13,589,221.42 16,480,293.15
Other cash received from business
101,615,328.20 91,747,818.37
operation
Sub-total of cash inflow from business
1,519,845,813.61 1,681,568,164.62
operations
Cash paid for purchasing products and
1,218,828,059.03 1,361,468,797.85
services
Net increase of client trade and
advance
Net increase of savings in central bank
and brother company
Cash paid for original contract claim
58
Interim Report 2022 of China Fangda Group Co., Ltd.
Net increase in funds dismantled
Cash paid for interest, processing fee
and commission
Cash paid for policy dividend
Cash paid to and for the staff 224,849,803.47 196,896,028.86
Taxes paid 88,742,682.58 431,724,633.10
Other cash paid for business activities 294,006,061.57 192,403,249.81
Sub-total of cash outflow from business
1,826,426,606.65 2,182,492,709.62
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 profit 2,513,790.26 2,754,435.58
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 2,041,120.00 332,717.49
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received
Sub-total of cash inflow generated from
2,286,788,976.66 2,227,682,044.15
investment
Cash paid for construction of fixed
assets, intangible assets and other long- 19,887,603.68 54,321,772.94
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
125,388,100.00
subsidiaries and other 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 loans 1,168,411,688.20 1,220,000,000.00
Other cash received from financing
activities
Subtotal of cash inflow from financing
1,168,411,688.20 1,220,000,000.00
activities
Cash paid to repay debts 328,500,000.00 445,249,952.00
Cash paid as dividend, profit, or
102,751,331.27 64,069,929.56
interests
Incl. Dividend and profit paid by
4,560,100.00
subsidiaries to minority shareholders
Other cash paid for financing activities 609,596,798.70 529,360,479.34
Subtotal of cash outflow from financing
1,040,848,129.97 1,038,680,360.90
activities
Net cash flow generated by financing
127,563,558.23 181,319,639.10
activities
4. Influence of exchange rate changes on 3,757,947.63 -671,353.77
59
Interim Report 2022 of China Fangda Group Co., Ltd.
cash and cash equivalents
5. Net increase in cash and cash
-298,333,058.20 -441,087,443.61
equivalents
Plus: Balance of cash and cash
892,251,071.59 1,028,386,529.73
equivalents at the beginning of term
6. Balance of cash and cash equivalents
593,918,013.39 587,299,086.12
at the end of the 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
10,460,521.63 10,393,331.14
and providing of services
Tax refunded
Other cash received from business
1,764,596,018.97 2,246,619,631.82
operation
Sub-total of cash inflow from business
1,775,056,540.60 2,257,012,962.96
operations
Cash paid for purchasing products and
981,699.47 342,534.67
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 activities 1,647,625,265.89 2,367,856,652.84
Sub-total of cash outflow from business
1,664,344,999.04 2,382,660,963.39
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 profit 431,992.15 33,976,138.71
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 675,000.00
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received
Sub-total of cash inflow generated from
846,106,992.15 416,776,138.71
investment
Cash paid for construction of fixed
assets, intangible assets and other long- 113,230.00 239,020.66
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 loans 300,000,000.00 300,000,000.00
60
Interim Report 2022 of China Fangda Group Co., Ltd.
Other cash received from financing
activities
Subtotal of cash inflow from financing
300,000,000.00 300,000,000.00
activities
Cash paid to repay debts 300,000,000.00 300,000,000.00
Cash paid as dividend, profit, or
60,578,669.24 8,748,888.89
interests
Other cash paid for financing activities
Subtotal of cash outflow from financing
360,578,669.24 308,748,888.89
activities
Net cash flow generated by financing
-60,578,669.24 -8,748,888.89
activities
4. Influence of exchange rate changes on
-22,654.47
cash and cash equivalents
5. Net increase in cash and cash
51,103,980.00 -100,659,771.27
equivalents
Plus: Balance of cash and cash
111,598,536.84 204,578,995.78
equivalents at the beginning of term
6. Balance of cash and cash equivalents
162,702,516.84 103,919,224.51
at the end of the period
7. Statement of Change in Owners' Equity (Consolidated)
Amount of the Current Term
In RMB
H1 2022
Owners' Equity Attributable to the Parent Company
Other equity tools Oth Min Tota
Co
Less er or l of
mm
Item Shar Pref Perp Capi : misc Spe Surp Reta shar
on own
e tal Shar ella cial lus ined Oth Subt ehol
erre etua risk ers'
capi Oth rese es in neo rese rese prof ers otal ders'
d l prov equi equi
tal ers rves stoc us rves rve it
shar bon isio ty ty
e d k inco
ns
me
1,07 11,4 35,3 79,3 4,32 5,52 67,1 5,59
1. Balance at
3,87 59,5 25,8 24,9 4,05 4,03 66,0 1,20
the end of
4,22 88.4 71.7 40.4 5,25 9,88 31.6 5,91
last year
7.00 0 8 3 9.33 6.94 6 8.60
Plus:
Changes in
accounting
policies
Co
rrection of
previous
errors
Co
nsolidation
of entities
under
common
control
61
Interim Report 2022 of China Fangda Group Co., Ltd.
Ot
hers
2. Balance at 1,07 11,4 35,3 79,3 4,32 5,52 67,1 5,59
the 3,87 59,5 25,8 24,9 4,05 4,03 66,0 1,20
beginning of 4,22 88.4 71.7 40.4 5,25 9,88 31.6 5,91
current year 7.00 0 8 3 9.33 6.94 6 8.60
3. Change
amount in - 58,9 58,5 60,2
1,70
the current 450, 91,5 41,2 43,3
2,08
period (“- 330. 62.4 32.1 13.8
1.71
“ for 27 2 5 6
decrease)
- 112, 112, 113,
(1) Total of 1,70
450, 685, 234, 937,
misc. 2,08
330. 273. 943. 025.
incomes 1.71
27 77 50 21
(2)
Investment
or decreasing
of capital by
owners
1. Common
shares
invested by
owners
2. Capital
contributed
by other
equity
instrument
holders
3. Amount of
shares paid
and
accounted as
owners'
equity
4. Others
- - -
53,6 53,6 53,6
(3) Profit
93,7 93,7 93,7
allotment
11.3 11.3 11.3
5 5 5
1. Provision
of surplus
reserves
2. Common
risk
provision
- - -
3.
53,6 53,6 53,6
Distribution
93,7 93,7 93,7
to owners (or
11.3 11.3 11.3
shareholders)
5 5 5
62
Interim Report 2022 of China Fangda Group Co., Ltd.
4. Others
(4) Internal
carry-over of
owners'
equity
1.
Capitalizing
of capital
reserves (or
share capital)
2.
Capitalizing
of surplus
reserves (or
share capital)
3. Surplus
reserves used
to cover
losses
4. Retained
gain
transferred
due to
change in set
benefit
program
5. Other
miscellaneou
s income
6. Others
(5) Special
reserves
1. Provided
this year
2. Used this
period
(6) Others
1,07 11,4 34,8 79,3 4,38 5,58 68,8 5,65
4. Balance at
3,87 59,5 75,5 24,9 3,04 2,58 68,1 1,44
the end of
4,22 88.4 41.5 40.4 6,82 1,11 13.3 9,23
this period
7.00 0 1 3 1.75 9.09 7 2.46
Amount of Last Year
In RMB
H1 2021
Owners' Equity Attributable to the Parent Company Min
Tota
Other equity tools Less Oth Co or
l of
Item Shar Pref Perp Capi : er Spe Surp mm Reta shar
own
e erre etua tal Shar misc cial lus on ined Oth Subt ehol
Oth ers'
capi d l rese es in ella rese rese risk prof ers otal ders'
ers equi
tal shar bon rves stoc neo rves rve prov it equi
ty
e d k us isio ty
63
Interim Report 2022 of China Fangda Group Co., Ltd.
inco ns
me
1,08 11,4 42,7 106, 4,21 5,38 66,5 5,44
1. Balance at 2,07
8,27 59,5 48,5 783, 5,00 0,85 38,8 7,39
the end of 8,16
8,95 88.4 30.1 436. 5,54 7,15 36.0 5,99
last year 7.63
1.00 0 2 96 1.52 5.39 9 1.48
Plus:
Changes in
accounting
policies
Co
rrection of
previous
errors
Co
nsolidation 11,5 12,8
9,00 2,52 1,28
of entities 21,7 01,8
0,00 1,70 0,18
under 01.0 90.0
0.00 1.04 9.00
common 4 4
control
Ot
hers
2. Balance at 1,08 20,4 42,7 106, 4,21 5,39 67,8 5,46
2,07
the 8,27 59,5 48,5 783, 7,52 2,37 19,0 0,19
8,16
beginning of 8,95 88.4 30.1 436. 7,24 8,85 25.0 7,88
7.63
current year 1.00 0 2 96 2.56 6.43 9 1.52
3. Change
- - -
amount in 101, 87,3 110, 27,5 138,
14,4 42,7 - 106,
the current 751, 80,8 691, 59,4 251,
04,7 48,5 1,46 783,
period (“- 783. 87.7 580. 78.8 058.
24.0 30.1 0.74 436.
“ for 91 5 08 1 89
0 2 96
decrease)
111, 111, 115,
(1) Total of - 3,67
488, 487, 162,
misc. 1,46 5,37
701. 240. 616.
incomes 0.74 5.75
33 59 34
(2) - - -
Investment 14,4 42,7 28,3
or decreasing 04,7 48,5 43,8
of capital by 24.0 30.1 06.1
owners 0 2 2
- - -
1. Common
14,4 42,7 28,3
shares
04,7 48,5 43,8
invested by
24.0 30.1 06.1
owners
0 2 2
2. Capital
contributed
by other
equity
instrument
holders
3. Amount of
shares paid
64
Interim Report 2022 of China Fangda Group Co., Ltd.
and
accounted as
owners'
equity
4. Others
(3) Profit
allotment
1. Provision
of surplus
reserves
2. Common
risk
provision
3.
Distribution
to owners (or
shareholders)
4. Others
(4) Internal
carry-over of
owners'
equity
1.
Capitalizing
of capital
reserves (or
share capital)
2.
Capitalizing
of surplus
reserves (or
share capital)
3. Surplus
reserves used
to cover
losses
4. Retained
gain
transferred
due to
change in set
benefit
program
5. Other
miscellaneou
s income
6. Others
(5) Special
reserves
1. Provided
this year
2. Used this
65
Interim Report 2022 of China Fangda Group Co., Ltd.
period
- -
101, - 23,8 23,0
78,4 24,1
751, 795, 84,1 88,4
(6) Others 39,6 07,8
783. 660. 03.0 42.5
30.8 13.5
91 51 6 5
4 8
1,07 122, 4,30 5,50 95,3 5,59
4. Balance at 2,07
3,87 211, 4,90 3,07 78,5 8,44
the end of 6,70
4,22 372. 8,13 0,43 03.9 8,94
this period 6.89
7.00 31 0.31 6.51 0 0.41
8. Statement of Change in Owners' Equity (Parent Company)
Amount of the Current Term
In RMB
H1 2022
Other equity tools Other
Total
Capita Less: miscel Specia Surplu
Item Retain of
Share Prefer Perpet l Shares laneou l s
ed Others owner
capital red ual Others reserv in s reserv reserv
profit s'
share bond es stock incom es e
equity
e
1. Balance at 1,073, - 79,32 1,290, 2,443,
360,8
the end of 874,2 520,7 4,940. 879,7 918,9
35.52
last year 27.00 86.11 43 60.71 77.55
Plus:
Changes in
accounting
policies
Co
rrection of
previous
errors
Ot
hers
2. Balance at
1,073, - 79,32 1,290, 2,443,
the 360,8
874,2 520,7 4,940. 879,7 918,9
beginning of 35.52
27.00 86.11 43 60.71 77.55
current year
3. Change
amount in - -
the current 59,58 59,58
period (“- 5,575. 5,575.
“ for 82 82
decrease)
- -
(1) Total of
5,891, 5,891,
misc.
864.4 864.4
incomes
7 7
(2)
Investment
or decreasing
of capital by
66
Interim Report 2022 of China Fangda Group Co., Ltd.
owners
1. Common
shares
invested by
owners
2. Capital
contributed
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
2. - -
Distribution 53,69 53,69
to owners (or 3,711. 3,711.
shareholders) 35 35
3. Others
(4) Internal
carry-over of
owners'
equity
1.
Capitalizing
of capital
reserves (or
share capital)
2.
Capitalizing
of surplus
reserves (or
share capital)
3. Surplus
reserves used
to cover
losses
4. Retained
gain
transferred
due to
change in set
67
Interim Report 2022 of China Fangda Group Co., Ltd.
benefit
program
5. Other
miscellaneou
s income
6. Others
(5) Special
reserves
1. Provided
this year
2. Used this
period
(6) Others
4. Balance at 1,073, - 79,32 1,231, 2,384,
360,8
the end of 874,2 520,7 4,940. 294,1 333,4
35.52
this period 27.00 86.11 43 84.89 01.73
Amount of Last Year
In RMB
H1 2021
Other equity tools Other
Total
Capita Less: miscel Specia Surplu
Item Retain of
Share Prefer Perpet l Shares laneou l s
ed Others owner
capital red ual Others reserv in s reserv reserv
profit s'
share bond es stock incom es e
equity
e
1. Balance at 1,088, 42,74 - 106,7 1,282, 2,435,
360,8
the end of 278,9 8,530. 371,1 83,43 911,9 215,5
35.52
last year 51.00 12 29.71 6.96 74.38 38.03
Plus:
Changes in
accounting
policies
Co
rrection of
previous
errors
Ot
hers
2. Balance at
1,088, 42,74 - 106,7 1,282, 2,435,
the 360,8
278,9 8,530. 371,1 83,43 911,9 215,5
beginning of 35.52
51.00 12 29.71 6.96 74.38 38.03
current year
3. Change
amount in - - -
1,509, 26,41 27,92
the current 14,40 42,74 28,34
102.6 8,197. 7,300.
period (“- 4,724. 8,530. 3,806.
9 73 42
“ for 00 12 12
decrease)
1,509, 26,41 27,92
(1) Total of
102.6 8,197. 7,300.
misc.
9 73 42
68
Interim Report 2022 of China Fangda Group Co., Ltd.
incomes
(2)
- - -
Investment
14,40 42,74 28,34
or decreasing
4,724. 8,530. 3,806.
of capital by
00 12 12
owners
1. Common - - -
shares 14,40 42,74 28,34
invested by 4,724. 8,530. 3,806.
owners 00 12 12
2. Capital
contributed
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.
Distribution
to owners (or
shareholders)
3. Others
(4) Internal
carry-over of
owners'
equity
1.
Capitalizing
of capital
reserves (or
share capital)
2.
Capitalizing
of surplus
reserves (or
share capital)
3. Surplus
reserves used
to cover
losses
4. Retained
gain
69
Interim Report 2022 of China Fangda Group Co., Ltd.
transferred
due to
change in set
benefit
program
5. Other
miscellaneou
s income
6. Others
(5) Special
reserves
1. Provided
this year
2. Used this
period
(6) Others
4. Balance at 1,073, 1,137, 78,43 1,309, 2,463,
360,8
the end of 874,2 972.9 9,630. 330,1 142,8
35.52
this period 27.00 8 84 72.11 38.45
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.
The Company has established a corporate governance structure that comprises shareholders' meeting, board of directors and
supervisory committee. Currently, the Company sets up the President Office, Administrative Department, HR Department,
Enterprise Management Department, Financial Department, Audit and Supervisory Department, Securities Department,
Technology Innovation Department and IT Department and has established subsidiaries including Fangda 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
70
Interim Report 2022 of China Fangda Group Co., Ltd.
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 "Section X, VIII. Changes in the Consolidation
Scope" and "Section X, 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
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.
71
Interim Report 2022 of China Fangda Group Co., Ltd.
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
Chapter X, V. important accounting policies and accounting estimates. 6. 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 liabilities recognized by the purchaser in the
merger, and is recognized as goodwill. If the merger cost is less than the difference between the identifiable assets and the fair
value of the liabilities obtained by the purchaser in the enterprise merger, the merger cost and the fair value of the identifiable
assets and the liabilities obtained by the purchaser in the enterprise merger are reviewed, and the merger cost is still less than the
fair value of the identifiable assets and liabilities obtained by the purchaser after the review, the difference is considered as the
profit and loss of the current period of the merger.
For the accounting treatment method of business combination not under the same control through step-by-step transactions,
see Chapter X, 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
72
Interim Report 2022 of China Fangda Group Co., Ltd.
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
(A) When preparing the consolidated balance sheet, adjust the opening number of the consolidated balance sheet and adjust
the related items of the comparative statement. The same report entity as the consolidated balance sheet will exist from the time of
the final control party.
(B) When preparing the consolidated cash flow statement, the cash flows of the subsidiary and the business combination from
the beginning of the current period to the end of the reporting period are included in the consolidated cash flow statement, and the
related items of the comparative statement are adjusted, which is regarded as the combined report body since the final The
controller has been there since the beginning of control.
(C) When preparing the consolidated cash flow statement, the cash flows of the subsidiary and the business combination from
the beginning of the current period to the end of the reporting period are included in the consolidated cash flow statement, and the
related items of the comparative statement are adjusted, which is regarded as the combined report body since the final The
controller has been there since the beginning of control.
B. 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.
73
Interim Report 2022 of China Fangda Group Co., Ltd.
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 undistributed profits, are restored according to the ownership of the
parent company after the long-term equity investment is offset by the ownership rights and interests of the subsidiary company.
③ If there is a temporary difference between the book value of assets and liabilities in the consolidated balance sheet and the
taxable basis of the taxpayer due to the offset of the unrealized internal sales gain or loss, the deferred income tax asset or the
deferred income tax liability is confirmed in the consolidated balance sheet, and the income tax expense in the consolidated profit
statement is adjusted, with the exception of the deferred income tax related to the transaction or event directly included in the
owner's equity and the merger of the enterprise.
④ The unrealized internal transaction gains and losses incurred by the Company from selling assets to subsidiaries shall be
fully offset against the "net profit attributable to the owners of the parent company". The unrealized internal transaction gains and
losses arising from the sale of assets by the subsidiary to the Company shall be offset between the “net profit attributable to the
owners of the parent company” and the “minority shareholder gains and losses” in accordance with the Company's distribution
ratio to the subsidiary. The unrealized internal transaction gains and losses arising from the sale of assets between subsidiaries
shall be offset between the "net profit attributable to the owners of the parent company" and the "minority shareholders' gains and
losses" in accordance with the Company's distribution ratio to the seller's subsidiary .
⑤ If the current loss shared by the minority shareholders of the subsidiary exceeds the share of the minority shareholders in
the owner 's equity of the subsidiary at the beginning of the period, the balance should still be offset against the minority
shareholders 'equity.
(5) Accounting treatment of special transactions
① Purchase minority shareholders' equity
The Company purchases the shares of the subsidiaries owned by the minority shareholders of the subsidiaries. In the
individual financial statements, the investment costs of the newly acquired long-term investments of the minority shares shall be
measured at the fair value of the price paid. In the consolidated financial statements, the difference between the newly acquired
long-term equity investment due to the purchase of minority equity and the share of net assets that should be continuously
calculated by the subsidiary since the purchase date or the merger date should be adjusted according to the new shareholding ratio.
The product (capital premium or equity premium), if the capital reserve is insufficient to offset, the surplus reserve and
undistributed profits are offset in turn.
② Step-by-step acquisition of control of the subsidiary through multiple transactions
A. Enterprise merger under common control through multiple transactions
74
Interim Report 2022 of China Fangda Group Co., Ltd.
On the date of the merger, the Company determines the initial investment cost of the long-term equity investment in the
individual financial statements based on the share of the subsidiary 's net assets that should be enjoyed after the merger in the final
controller 's consolidated financial statements; the initial investment cost and the The difference between the book value of the
long-term equity investment before the merger plus the book value of the consideration paid for new shares acquired on the merger
date, the capital reserve (capital premium or equity premium) is adjusted, and the capital reserve (capital premium or equity
premium) is insufficient to offset Reduced, in turn offset the surplus reserve and undistributed profits.
In consolidated financial statements, assets and liabilities obtained by the merging party from the merged party should be
measured at the book value in the final controlling party's consolidated financial statements other than the adjustment made due to
differences in accounting policies; adjust the capital surplus (share premium) according to the difference between the initial
investment cost and the book value of the held investment before merger plus the book value of the consideration paid on the
merger date. Where the capital surplus falls short, the retained income should be adjusted.
If the merging party holds the equity investment before acquiring the control of the merged party and is accounted for
according to the equity method, the date of acquiring the original equity and the merging party and the merged party are in the
same party's final control from the later date to the merger date The relevant gains and losses, other comprehensive income and
other changes in owner's equity have been confirmed between them, and the retained earnings at the beginning of the comparative
statement period should be offset separately.
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 converted to the current gains on the date of
purchase, with the exception of the other consolidated gains arising from the remeasurement of the net assets or net liabilities of
the merged party. The Company disclosed in the notes the fair value of the equity of the purchased party held before the purchase
date and the amount of related gains or losses remeasured according to the fair value.
(3) The Company disposes of long-term equity investment in subsidiaries without losing control
The parent company partially disposes of the long-term equity investment in the subsidiary company without losing control.
In the consolidated financial statements, the disposal price corresponds to the disposal of the long-term equity investment. The
difference between the shares is adjusted for the capital reserve (capital premium or equity premium). If the capital reserve is
insufficient to offset, the retained earnings are adjusted.
④ The Company disposes of long-term equity investment in subsidiaries and loses control
A. One transaction disposition
If the Company loses control over the Invested Party due to the disposal of part of the equity investment, it shall remeasure
the remaining equity according to its fair value at the date of loss of control when compiling the consolidated financial statement.
The sum of the consideration obtained from the disposal of equity and the fair value of the remaining equity minus the difference
between the share of the original subsidiary 's net assets that should be continuously calculated from the purchase date or the
merger date, calculated as the loss of control The investment income of the current period.
75
Interim Report 2022 of China Fangda Group Co., Ltd.
Other comprehensive income and other owner's equity changes related to the equity investment of the atomic company are
transferred to the current profit and loss when the control is lost, except for other comprehensive income arising from the
remeasurement of the net benefits or net assets of the defined benefit plan by the investee. .
B. Multi-transaction step-by-step disposition
In consolidated financial statements, you should first determine whether a step-by-step transaction is a "blanket transaction".
If the step-by-step transaction does not belong to a "package deal", in the individual financial statements, for each transaction
before the loss of control of the subsidiary, the book value of the long-term equity investment corresponding to each disposal of
equity is carried forward, the price received and the disposal The difference between the book value of the long-term equity
investment is included in the current investment income; in the consolidated financial statements, it should be handled in
accordance with the relevant provisions of "the parent company disposes of the long-term equity investment in the subsidiary
without losing control."
If a step-by-step transaction belongs to a "blanket transaction", the transaction shall be treated as a transaction that disposes of
the subsidiary and loses control; In individual financial statements, the difference between each disposal price before the loss of
control and the book value of the long-term equity investment corresponding to the equity being disposed of is first recognized as
other consolidated gains and then converted to the current loss of control at the time of the loss of control; In the consolidated
financial statements, for each transaction prior to the loss of control, the difference between the disposition of the price and the
disposition of the investment corresponding to the share in the net assets of the subsidiary shall be recognized as other
consolidated gains and shall, at the time of the loss of control, be transferred to the loss of control for the current period.
Where the terms, conditions, and economic impact of each transaction meet one or more of the following conditions, usually
multiple transactions are treated as a "package deal":
(a) These transactions were concluded at the same time or in consideration of mutual influence.
(b) These transactions can only achieve the business result as a whole;
(c) The effectiveness of one transaction depends the occurance of at least another transaction;
(d) A single transaction is not economic and is economic when considered together with other transactions.
(5) Proportion of minority shareholders in factor companies who increase capital and dilute ownership of parent companies
Proportion of Others （ minority shareholders in factor companies who increase capital , dilute Subsidiaries of parent
companies. In the consolidated financial statements, the share of the parent company in the net book assets of the former
subsidiary of the capital increase is calculated according to the share ratio of the parent company before the capital increase, the
difference between the share and the net book assets of the latter subsidiary after the capital increase is calculated according to the
share ratio of the parent company, the capital reserve (capital premium or capital premium), the capital reserve (capital premium or
capital premium) is not offset, and the retained income is adjusted.
7. Recognition of cash and cash equivalents
Cash refers to cash in stock and deposits that can be used for payment at any time. Cash equivalents refer to investments with
a short holding period (generally referring to expiry within three months from the date of purchase), strong liquidity, easy to
convert to a known amount of cash, and little risk of value change.
8.Foreign exchange business and foreign exchange statement translation
(1) Methods for determining conversion rates in foreign currency transactions
76
Interim Report 2022 of China Fangda Group Co., Ltd.
When the Company's foreign currency transactions are initially confirmed, they will be converted into the bookkeeping
standard currency at the spot exchange rate on the transaction date.
(2) Methods of conversion of foreign currency currency currency items on balance sheet days
At the balance sheet date, foreign currency items are translated on the spot exchange rate of the balance sheet date. The
exchange differences caused by the difference in exchange rates on the balance sheet date and initial recognizing date or previous
balance sheet date are included in the current profits and losses. Non-monetary items accounted in foreign currency and on
historical costs are exchanged with the spot exchange rate on the transaction date. Non-monetary items accounted in foreign
currency and on fair value are exchanged with the spot exchange rate on the determination date of the fair value. The exchange
difference between the accounting standard-currency amount and the original accounting standard-currency amount are included
in the 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 items in the balance sheet is transferred to the profit or loss for
the current period, either in whole or in proportion to the disposal of the foreign operations.
9. Financial instrument
Financial instrument refers to a company's financial assets and contracts that form other units of financial liabilities or equity
instruments.
(1) Recognition and de-recognition of financial instrument
The Company recognizes a financial asset or liability when it becomes one party in the financial instrument contract.
Financial asset is derecognized when:
① The contractual right to receive the cash flows of the financial assets is terminated;
② The financial asset is transferred and meets the following derecognition condition.
If the current obligation of a financial liability (or part of it) has been discharged, the Company derecognises the financial
liability (or part of the financial liability). When the Company (borrower) and lender enter into an agreement to replace the
77
Interim Report 2022 of China Fangda Group Co., Ltd.
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.
The subsequent measurement of financial assets depends on their classification:
① Financial assets measured at amortized cost
Financial assets that meet the following conditions at the same time are classified as financial assets measured at amortized
cost: The Company 's business model for managing this financial asset is to collect contractual cash flows as its goal; the contract
terms of the financial asset stipulate that Cash flow is only the payment of principal and interest based on the outstanding principal
amount. For such financial assets, the actual interest rate method is used for subsequent measurement according to the amortized
cost. The gains or losses arising from the termination of recognition, amortization or impairment based on the actual interest rate
method are included in the current profit and loss.
② Financial assets measured at fair value and whose changes are included in other comprehensive income
Financial assets that meet the following conditions at the same time are classified as financial assets measured at fair value
and their changes are included in other comprehensive income: The Company's business model for managing this financial asset is
to both target the collection of contractual cash flows and the sale of financial assets. Objective; The contractual terms of the
financial asset stipulate that the cash flow generated on a specific date is only for the payment of principal and interest based on
the outstanding principal amount. For such financial assets, fair value is used for subsequent measurement. Except for impairment
losses or gains and exchange gains and losses recognized as current gains and losses, changes in the fair value of such financial
assets are recognized as other comprehensive income. Until the financial asset is derecognized, its accumulated gains or losses are
transferred to current gains and losses. However, the relevant interest income of the financial asset calculated by the actual interest
rate method is included in the current profit and loss.
78
Interim Report 2022 of China Fangda Group Co., Ltd.
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 amortized cost.
The subsequent measurement of financial liabilities depends on their classification:
① Financial liabilities measured at fair value with variations accounted into current income account
Such financial liabilities include transactional financial liabilities (including derivatives that are financial liabilities) and
financial liabilities designated as at fair value through profit or loss. After the initial recognition, the financial liabilities are
subsequently measured at fair value. Except for the hedge accounting, the gains or losses (including interest expenses) are
recognized in profit or loss. However, for the financial liabilities designated as fair value and whose variations are included in the
profits and losses of the current period, the variable amount of the fair value of the financial liability due to the variation of credit
risk of the financial liability shall be included in the other consolidated income. When the financial liability is terminated, the
cumulative gains and losses previously included in the other consolidated income shall be transferred out of the other consolidated
income and shall be included in the retained income.
② Loan commitments and financial security contractual liabilities
A loan commitment is a promise that the Company provides to customers to issue loans to customers with established
contract terms within the commitment period. Loan commitments are provided for impairment losses based on the expected credit
loss model.
A financial guarantee contract refers to a contract that requires the Company to pay a specific amount of compensation to the
contract holder who suffered a loss when a specific debtor is unable to repay the debt in accordance with the original or modified
debt instrument terms. Financial guarantee contract liabilities are subsequently measured based on the higher of the loss reserve
amount determined in accordance with the principle of impairment of financial instruments and the initial recognition amount after
deducting the accumulated amortization amount determined in accordance with the revenue recognition principle.
③ Financial liabilities measured at amortized cost
After initial recognition, other financial liabilities are measured at amortized cost using the effective interest method.
Except in special circumstances, financial liabilities and equity instruments are distinguished according to the following
principles:
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.
79
Interim Report 2022 of China Fangda Group Co., Ltd.
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.
(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.
80
Interim Report 2022 of China Fangda Group Co., Ltd.
On each balance sheet day, the Company measures the expected credit losses of financial instruments at different stages.
Where the credit risk has not increased significantly since the initial confirmation of the financial instrument, it is in the first stage.
The Company measures the preparation for loss according to the expected credit loss in the next 12 months. Where the credit risk
has increased significantly since the initial confirmation but the credit impairment has not occurred, the financial instrument is in
the second stage. Where a credit impairment has occurred since the initial confirmation of the financial instrument, it shall be in
the third stage, and the Company shall prepare for measuring the expected credit loss of the whole survival period of the
instrument.
For financial instruments with low credit risk on the balance sheet date, the Company assumes that the credit risk has not
increased significantly since the initial recognition, and measures the loss provision based on the expected credit losses in the next
12 months.
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 determining 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, compiles the account receivable age and the whole
expected credit loss rate table, and calculates the expected credit loss.
81
Interim Report 2022 of China Fangda Group Co., Ltd.
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 historical credit loss experience, combined with current
conditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit loss
rate within the next 12 months or the entire duration Expected credit losses.
② Lower credit risk
If the risk of default on financial instruments is low, the borrower's ability to meet its contractual cash flow obligations in the
short term is strong, and even if the economic situation and operating environment are adversely changed over a long period of
time, it may not necessarily reduce the receivables' performance of their contractual cash. The ability of the flow obligation, the
financial instrument is considered to have a lower credit risk.
③ Significant increase in credit risk
The Company compares the default probability of the financial instrument during the expected lifetime determined by the
balance sheet date with the default probability of the expected lifetime during the initial confirmation to determine the relative
82
Interim Report 2022 of China Fangda Group Co., Ltd.
probability of the default probability of the financial instrument during the expected lifetime Changes to assess whether the credit
risk of financial instruments has increased significantly since initial recognition.
In determining whether the credit risk has increased significantly since the initial recognition, the Company considers
reasonable and evidenced information, including forward-looking information, that can be obtained without unnecessary
additional costs or effort. The information considered by the Company includes:
A. Significant changes in internal price indicators resulting from changes in credit risk;
B. Adverse changes in business, financial or economic conditions that are expected to cause significant changes in the
debtor's ability to perform its debt service obligations;
C. Whether the actual or expected operating results of the debtor have changed significantly; whether the regulatory,
economic or technical environment of the debtor has undergone significant adverse changes;
D. Whether there is a significant change in the value of the collateral used as debt collateral or the guarantee provided by a
third party or the quality of credit enhancement. These changes are expected to reduce the debtor's economic motivation for
repayment within the time limit specified in the contract or affect the probability of default;
E. Whether there is a significant change in the economic motivation that is expected to reduce the debtor's repayment
according to the contractual deadline;
F. Anticipated changes to the loan contract, including whether the expected violation of the contract may result in the
exemption or revision of contract obligations, granting interest-free periods, rising interest rates, requiring additional collateral or
guarantees, or making other changes to the contractual framework of financial instruments change;
G. Whether the expected performance and repayment behavior of the debtor has changed significantly;
H. Whether the contract payment is overdue for more than (including) 30 days.
Based on the nature of financial instruments, the Company assesses whether credit risk has increased significantly on the
basis of a single financial instrument or combination of financial instruments. When conducting an assessment based on a
combination of financial instruments, the Company can classify financial instruments based on common credit risk characteristics,
such as overdue information and credit risk ratings.
If the overdue period exceeds 30 days, the Company has determined that the credit risk of financial instruments has increased
significantly. Unless the Company does not have to pay excessive costs or efforts to obtain reasonable and warranted information,
it proves that although it has exceeded the time limit of 30 days agreed upon in the Contract, credit risks have not increased
significantly since the initial confirmation.
④ Financial assets with credit impairment
The Company assesses on the balance sheet date whether financial assets measured at amortized cost and credit investments
measured at fair value and whose changes are included in other comprehensive income have undergone credit impairment. When
one or more events that adversely affect the expected future cash flows of a financial asset occur, the financial asset becomes a
financial asset that has suffered a credit impairment. Evidence that credit impairment has occurred in financial assets includes the
following observable information:
Major financial difficulties have occurred to the issuer or the debtor; Breach of contract by the debtor, such as payment of
interest or default or overdue of principal; (B) The concession that the debtor would not make under any other circumstances for
economic or contractual considerations relating to the financial difficulties of the debtor; The debtor is likely to be bankrupt or
undertake other financial restructuring; The financial difficulties of the issuer or debtor lead to the disappearance of the active
83
Interim Report 2022 of China Fangda Group Co., Ltd.
market for the financial asset; To purchase or generate a financial asset at a substantial discount, which reflects the fact that a
credit loss has occurred.
⑤ Presentation of expected credit loss measurement
In order to reflect the changes in the credit risk of financial instruments since the initial recognition, the Company re-
measures the expected credit losses on each balance sheet date, and the increase or reversal of the loss provision resulting
therefrom is included as an impairment loss or gain. Current profit and loss. For financial assets measured at amortized cost, the
loss allowance offsets the book value of the financial asset listed on the balance sheet; for debt investments measured at fair value
and whose changes are included in other comprehensive income, the Company Recognition of its loss provisions in gains does not
offset the book value of the financial asset.
⑥ Canceled
If it is no longer reasonably expected that the contract cash flow of the financial assets will be fully or partially recovered, the
book balance of the financial assets will be directly reduced. Such write-off constitute the derecognition of related financial assets.
This usually occurs when the Company determines that the debtor has no assets or sources of income that generate sufficient cash
flow to cover the amount that will be written down.
If the financial assets that have been written down are recovered in the future, the reversal of the impairment loss is included
in the profit or loss of the current period.
(6) Transfer of financial assets
The transfer of financial assets refers to the following two situations:
A. Transfer the contractual right to receive cash flow of financial assets to another party;
B. Transfers the financial assets to the other party in whole or in part, but reserves the contractual right to collect the cash
flow of the financial assets and undertakes the contractual obligation to pay the collected cash flow to one or more recipients.
① De-identification of transferred financial assets
Those who have transferred almost all risks and rewards in the ownership of financial assets to the transferee, or have neither
transferred nor retained almost all the risks and rewards in the ownership of financial assets, but have given up control of the
financial assets, terminate the confirmation The financial asset.
In determining whether control over the transferred financial asset has been waived, the actual capacity of the transferor to
sell the financial asset is determined. If the transferor is able to sell the transferred financial assets wholly to a third party that does
not have a relationship with them, and has no additional conditions to limit the sale, it indicates ds has waived control over the
financial assets.
The Company pays attention to the essence of financial asset transfer when judging whether financial asset transfer meets the
condition of financial asset termination.
If the overall transfer of financial assets meets the conditions for termination of confirmation, the difference between the
following two amounts is included in the current profit and loss:
A. Continuing identification of transferred Book value；
B. The sum of the amount received as a result of the transfer and the amount accrued as a result of the change in the fair value
of the transfer in respect of the termination recognized portion of the amount previously charged directly to the other consolidated
proceeds (the financial assets involved in the transfer are those classified in accordance with Article 18 of Enterprise Accounting
84
Interim Report 2022 of China Fangda Group Co., Ltd.
Standard No. 22 - Financial Instruments Recognition and Measurement as measured by the fair value and whose change is charged
to the other consolidated proceeds).
If the partial transfer of financial assets meets the conditions for derecognition, the book value of the entire transferred
financial assets will be included in the derecognized part and the unterminated part (in this case, the retained service assets are
regarded as part of the continued recognition of financial assets) Between them, they are apportioned according to their respective
relative fair values on the transfer date, and the difference between the following two amounts is included in the current profit and
loss:
A. Termination of the book value of the recognized portion on the date of derecognition;
B. The sum of the amount received as a result of the transfer and the amount accrued as a result of the change in the fair value
of the transfer in respect of the termination recognized portion of the amount previously charged to the other consolidated
proceeds (the financial assets involved in the transfer are those classified in accordance with Article 18 of Enterprise Accounting
Standard No. 22 - Financial Instruments Recognition and Measurement as measured by the fair value and whose change is charged
to the other consolidated proceeds).
② Continue to be involved in the transferred financial assets
If neither transfer nor retain almost all the risks and rewards of the ownership of financial assets, and have not given up
control of the financial assets, the relevant financial assets should be confirmed according to the extent of their continued
involvement in the transferred financial assets, and the relevant liabilities should be recognized accordingly.
The extent to which the transferred financial assets continue to be involved refers to the extent to which the enterprise
undertakes the risk or compensation of the value change of the transferred financial assets.
(III) Continuing identification of transferred financial assets
Where almost all risks and remuneration in relation to ownership of the transferred financial assets are retained, the whole of
the transferred financial assets shall continue to be recognized and the consideration received shall be recognized as a financial
liability.
The financial asset and the recognized related financial liabilities shall not offset each other. In the subsequent accounting
period, the enterprise shall continue to recognize the income (or gain) generated by the financial asset and the costs (or losses)
incurred by the financial liability.
(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 Chapter X, V. important
accounting policies and accounting estimates 34. Other important accounting policies and accounting estimates (1) fair value
measurement.
85
Interim Report 2022 of China Fangda Group Co., Ltd.
10. Notes receivable
See Chapter X, V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.
11. Account receivable
See Chapter X, V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.
12. Receivable financing
See Chapter X, V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.
13. Other receivables
See Chapter X, V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.
14. Inventories
(1) Classification of inventories
Inventory refers to the finished products or commodities held by the Company for sale in daily activities, the products in
process of production, the materials and materials consumed in the process of production or providing labor services, including
entrusted processing materials, raw materials, products in process, materials in transit, stored goods, low value consumables,
development costs, development products and contract performance costs, etc.
(2) 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 costs during the development
process. The special maintenance funds collected in the first period are included in the development overheads. The actual costs of
the development product is priced using the separate pricing method.
(3) Inventory system
The Company inventory adopts the perpetual inventory system, counting at least once a year, the inventory profit and loss
amount is included in the current year's profit and loss.
(4) Recognition of inventory realizable value and providing of impairment provision
On the balance sheet date, inventories are accounted depending on which is lower between the cost and the net realizable
value. If the cost is higher than the net realizable value, the impairment provision will be made.
The realizable net value of inventory should be recognized based on solid evidence with the purpose of the inventory and
after-balance-sheet-date events taken into consideration.
(1) In the course of normal production and operation, the net realizable value of finished goods, commodities and materials
directly used for sale shall be determined by the estimated price of the inventory minus the estimated cost of sale and related taxes.
The inventory held for the execution of a sales contract or a labor contract shall be measured on the basis of the contract price as
its net realizable value; If the quantity held is greater than the quantity ordered under the sales contract, the net realizable value of
the excess inventory is measured on the basis of the general sales price. For materials used for sale, the market price shall be used
as the measurement basis for the net realizable value.
86
Interim Report 2022 of China Fangda Group Co., Ltd.
②In the normal production and operation process, the inventory of materials that need to be processed is determined by the
amount of the estimated selling price of the finished product minus the estimated cost to be incurred at the time of completion,
estimated sales expenses and related taxes Realize the net value. If the net realizable value of the finished product produced by it is
higher than the cost, the material is measured at cost; If the decrease in the price of the material indicates that the net realizable
value of the finished product is lower than the cost, the material is measured as the net realizable value and the inventory is
prepared for a decrease based on its difference.
③ Depreciation preparation of inventory is generally based on a single inventory item; For a large number of inventories with
a lower unit price, they are accrued by inventory type.
④ If the factors affecting the previous write-down of inventory value have disappeared on the balance sheet date, the amount
of the write-down will be restored and transferred back within the amount of inventory depreciation reserve that has been accrued,
and the amount returned will be included in the current profit and loss.
(5) Methods of amortization of swing materials
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 Chapter X, 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.
87
Interim Report 2022 of China Fangda Group Co., Ltd.
The assets related to the contract cost shall be amortised on the same basis as the income from goods or services related to the
assets; however, if the amortization period of the contract acquisition cost is less than one year, the Company shall include it in the
current profit and loss when it occurs.
If the book value of the assets related to the contract cost is higher than the difference between the following two items, the
Company will make provision for impairment for the excess part and recognize it as the loss of asset impairment, and further
consider whether the estimated liabilities related to the loss contract should be made:
① The residual consideration expected to be obtained due to the transfer of goods or services related to the asset;
② The estimated cost to be incurred for the transfer of the relevant goods or services.
If the above provision for impairment of assets is subsequently reversed, the book value of the asset after reversal shall not
exceed the book value of the asset on the reversal date without provision for impairment.
The contract performance cost recognized as an asset with an amortization period of no more than one year or one normal
business cycle at the time of initial recognition shall be listed in the "inventory" item, and the amortization period of no more than
one year or one normal business cycle at the time of initial recognition shall be listed in the "other non current assets" item.
The contract acquisition cost recognized as an asset shall be listed in the item of "other current assets" when the amortization
period does not exceed one year or one normal business cycle at the time of initial recognition, and listed in the item of "other non
current assets" when the amortization period exceeds one year or one normal business cycle at the time of initial recognition.
17. Long-term share equity investment
The Group's long-term equity investment includes control on invested entities and significant impacts on equity investment.
Invested entities on which the Group has significant impacts are associates of the Group.
(1) Basis for recognition of common control and major influence on invested entities
Common control refers to the common control of an arrangement in accordance with the relevant agreement, and the relevant
activities of the arrangement must be agreed upon by the participants who share control. In determining whether there is common
control, the first step is to determine whether all or a group of participants collectively control the arrangement, which is
considered collective control by all or a group of participants if all or a group of participants must act together to determine the
activities associated with the arrangement. Secondly, it is judged whether the decision on related activities of the arrangement must
be agreed by the participants who collectively control the arrangement. If there is a combination of two or more parties that can
collectively control an arrangement, it does not constitute joint control. When judging whether there is joint control, the protective
rights enjoyed are not considered.
Major influence refers to the power to participate in decision-making of financial and operation policies of a company, but
cannot control or jointly control the making of the policies. When considering whether the Company can impose significant
impacts on the invested entity, impacts of conversion of shares with voting rights held directly or indirectly by the investor and
voting rights that can be executed in this period held by the investor and other party into shares of the invested entity should be
considered.
If the Company directly or through subsidiaries holds more than 20% (inclusive) but less than 50% of the shares with voting
rights of the invested entity, unless there is clear evidence proving that the Company cannot participate the decision-making of
production and operation of the invested entity, the Company has major influence on the invested entity.
(2) Recognition of initial investment costs
Long-term equity investments formed by merger of enterprises shall be determined in accordance with the following
provisions:
88
Interim Report 2022 of China Fangda Group Co., Ltd.
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.
(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
89
Interim Report 2022 of China Fangda Group Co., Ltd.
Gains from long-term equity investment measured by equity
When the equity method is used to measure long-term equity investment, the investment cost will not be adjusted if the
investment cost of the long-term equity investment is larger than the share of fair value of the recognizable assets of the invested
entity. When it is smaller than the share of fair value of the recognizable assets of the invested entity, the book value will be
adjusted and the difference is included in the current gains of the investment.
When the equity method is used, the current investment gain is the share of the net gain realized in the current year that can
be shared or borne, recognized as investment gain and other misc. income. The book value of the long-term equity investment is
adjusted accordingly. The book value of the long-term equity investment should be accordingly decreased based on the share of
profit or cash dividend announced by the invested entity; according to other changes in the owner's equity except for net profit and
loss, other misc income and profit distribution of the invested entity, adjust the book value of the long-term equity investment and
record it in the capital surplus (other capital surplus). When the share of the net gains that can be enjoyed is recognized, it is
recognized after the net profit of the invested entity is adjusted based on the fair value of the recognizeable assets of the invested
entity according to the Company's accounting policies and accounting period. Where the accounting policy and accounting period
adopted by the Invested unit are inconsistent with the Company, the financial statements of the Invested unit shall be adjusted in
accordance with the accounting policy and accounting period of the Company, and the investment income and other consolidated
income shall be recognized. Internal transaction gain not realized between the Company and affiliates is measured according to the
shareholding proportion and the investment gains is recoginzied after deduction. The unrealized internal transaction loss between
the Company and the invested entity is the impairment loss of transferred assets and should not be written off.
Where substantial influence on invested entities is imposed or joint control is implemented due to increase in investment, the
sum of the fair value of the original equity and increased investment on the conversion date is the initial investment cost under the
equity method. If the equity investment originally held is classified as other equity instrument investment, the difference between
the fair value and the book value, as well as the accumulated gains or losses originally included in other comprehensive income,
shall be transferred out of other comprehensive income and included in retained income in the current period when the equity
method is adopted.
Where joint control or substantial influence on invested entities is lost due to disposal of part of investment, the remaining
equity after the disposal should be treated according to the Enterprise Accounting Standard No.22 – Recognition and Measurement
of Financial Instruments from the date of losing the joint control or substantial influence. The difference between the fair value
and book value should be accounted the profit and loss of the current period. For other misc. incomes of original share equity
investment determined using the equity method, when the equity method is no longer used, it should be treated based on the same
basis of the treatment of related assets or liability of the invested entities; the other owners' interests related to the original share
equity investment should be transferred to gain/loss of the current period.
(4) Equity investment held for sale
For the remaining equity investments not classified as assets held for sale, the equity method is adopted for accounting
treatment.
Equity investments classified as held for sale to associates that are no longer eligible to hold classified assets for sale are
retrospectively adjusted using the equity method starting from the date that they are classified as held for sale. The classification is
adjusted to hold the financial statements for the period to be sold.
(5) Impairment examination and providing of impairment provision
For the investment in subsidiaries and associated enterprises, the method of withdrawing asset impairment is shown in
Chapter X, V. important accounting policies and accounting estimates. 24. Impairment of long-term assets.
90
Interim Report 2022 of China Fangda Group Co., Ltd.
XVIII. Investment real estates
(1) Classification of investment real estate
Investment real estates are held for rent or capital appreciation, or both. These include, inter alia:
① Leased land using right
(2) the right to use the land that is transferred after holding and preparing for the increment.
③ Leased building
(2) Measurement of investment real estate
For investment real estates with an active real estate transaction market and the Company can obtain market price and other
information of same or similar real estates to reasonably estimate the investment real estates' fair value, the Company will use the
fair value mode to measure the investment real estates subsequently. Variations in fair value are accounted into the current
gain/loss account.
The fair value of investment real estates is determined with reference to the current market prices of same or similar real
estates in active markets; when no such price is available, with reference to the recent transaction prices and consideration of
factors including transaction background, date and district to reasonably estimate the fair value; or based on the estimated lease
gains and present value of related cash flows.
For investment real estate under construction (including investment real estate under construction for the first time), if the fair
value cannot be reliably determined but the expected fair value of the real estate after completion is continuously and reliably
obtained, the investment real estate under construction is measured by cost. When the fair value can be measured reliably or after
completion (the earlier one), it is measured at fair value. For an investment real estate whose fair value is proven unable to be
obtained continuously and reliably by objective evidence, the real estate will be measured at cost basis until it is disposed and no
residual value remains as assumed.
If the cost model is 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 Chapter X 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.
91
Interim Report 2022 of China Fangda Group Co., Ltd.
Overhaul cost generated by regular examination on fixed assets is recognized as fixed assets costs when there is evidence
proving that it meets fix assets recognition conditions. If not, it will be accounted into the current gain/loss account.
(2) Depreciation method
Annual
Depreciation
Type Service year (year) Residual rate % depreciation
method
rate %
Houses & buildings Average age 20-50 10.00 1.80-4.50
Mechanical equipment Average age 10.00 10.00 9.00
Transportation facilities Average age 5.00 10.00 18.00
Electronics and other
Average age 5.00 10.00 18.00
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.
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.
92
Interim Report 2022 of China Fangda Group Co., Ltd.
If the construction or production of assets satisfying the capitalizing conditions is suspended abnormally for over 3 months,
capitalizing of borrowing expenses shall be suspended. During the normal suspension period, borrowing expenses will be
capitalized continuously.
When the asset satisfying the capitalizing conditions has reached its usable or sellable status, capitalizing of borrowing
expenses shall be terminated.
(2) Calculation of the capitalization amount of borrowing expense
Interest expenses generated by special borrowings less the interests income obtained from the deposit of unused borrowings
or investment gains from temporary investment is capitalized; the capitalization amount for general borrowing is determined based
on the capitalization rate which is the exceeding part of the accumulative assets expense over weighted average of the assets
expense of the special borrowing/used general borrowing.
If the assets that are constructed or produced under the condition of capitalization occupy the general borrowing, the interest
amount to be capitalized in the general borrowing shall be calculated and determined by multiplying the capital rate of the general
borrowing by the weighted average of the asset expenditure of the accumulated assets whose expenditure exceeds that of the
specialized borrowing. The capitalization ratio is the weighted average interest rate of general borrowings.
22. Use right assets
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 Chapter X, 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
93
Interim Report 2022 of China Fangda Group Co., Ltd.
① Useful life of intangible assets with limited useful life
Item Estimated useful life Basis
Land using right Term Use right assets
Trademarks and patents 10 Reference to determine the lifetime of a company for which
it can bring economic benefits
Proprietary technology 10 Reference to determine the lifetime of a company for which
it can bring economic benefits
Software 5. 10 years Reference to determine the lifetime of a company for which
it can bring economic benefits
At the end of each year, the Company will reexamine the useful life and amortization basis of intangible assets with limited
useful life. Upon review, the service life and amortization methods of intangible assets at the end of the period are not different
from those previously estimated.
(2) Intangible assets which cannot be foreseeable to bring economic benefits to enterprises shall be regarded as intangible
assets whose useful life is uncertain. For intangible assets with uncertain service life, the Company reviews the service life of
intangible assets with uncertain service life at the end of each year. If it is still uncertain after rechecking, it shall conduct an
impairment test on the balance sheet date.
③ Amortization of intangible assets
For intangible assets with limited service life, the Company shall determine their service life at the time of acquisition, and
shall use the straight line method system to reasonably amortize their service life, and the amortization amount shall be included in
the profit and loss of the current period according to the beneficial items. The specific amortization amount is the amount after the
cost is deducted from the estimated residual value. For fixed assets for which depreciation provision is made, the depreciation rate
will be determined after the accumulative depreciation provision amount is deducted. The residual value of an intangible asset
with limited useful life is treated as zero, except where a third party undertakes to purchase the intangible asset at the end of its
useful life or to obtain expected residual value information based on the active market, which is likely to exist at the end of its
useful life.
(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;
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;
94
Interim Report 2022 of China Fangda Group Co., Ltd.
E. The expenditure attributable to the development stage of the intangible asset can be reliably measured.
24. Assets impairment
The Group uses the cost mode to continue measuring the assets impairment to investment real estate, fixed assets construction
in progress, intangible assets and goodwill (except for the inventories, investment real estate measured by the fair value mode,
deferred income tax assets and financial assets). The method is determined as follows:
The Company judges whether there is a sign of impairment to assets on the balance sheet day. If such sign exists, the
Company estimates the recoverable amount and conducts the impairment test. Impairment test is conducted annually for goodwill
generated by mergers and intangible assets that have not reached the useful condition no matter whether the impairment sign exists.
The recoverable amount is determined by the higher of the net of fair value minus disposal expense and the present value of
the predicted future cash flow. The Company estimates the recoverable amount on the individual asset item basis; whether it is
hard to estimate the recoverable amount on the individual asset item basis, determine the recoverable amount based on the asset
group that the assets belong to. The assets group is determined by whether the main cash flow generated by the Group is
independent from those generated by other assets or assets groups.
When the recoverable amount of the assets or assets group is lower than its book value, the Company writes down the book
value to the recoverable amount, the write-down amount is accounted into the current income account and the assets impairment
provision is made.
For goodwill impairment test, the book value of goodwill generated by mergers is amortized through reasonable measures
since the purchase day to related asset groups; those cannot be amortized to related assets groups are amortized to related
combination of asset groups. The related asset groups or combination of asset groups refer to those that can benefit from the
synergistic effect of mergers and must not exceed to the reporting range determined by the Company.
When the impairment test is conducted, if there is sign of impairment to the asset group or combination of asset groups
related to goodwill, first perform impair test for asset group or combination of asset groups without goodwill and calculate the
recoverable amount and recognize the related impairment loss. Then conduct impairment test on those with goodwill, compare the
book value with recoverable amount. If the recoverable amount is lower than the book value, recognize the impairment loss of the
goodwill.
Once recognized, the asset impairment loss cannot be written back in subsequent accounting period.
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
See 15. Contract assets in Chapter X, V. Important Accounting Policies and Accounting Estimates for details.
27. Staff remuneration
(1) Accounting of operational leasing
① Basic salary of employees (salary, bonus, allowance, subsidy)
In the accounting period for which the staff and workers provide services, the Company shall confirm the actual short-term
remuneration as liabilities and shall account for the current income and loss, except as required or permitted by other accounting
standards.
95
Interim Report 2022 of China Fangda Group Co., Ltd.
② Employee welfare
The employee benefits incurred by the Company shall be included in the current profit and loss or related asset costs
according to the actual amount incurred. Where the employee's benefit is non-monetary, it shall be measured on the basis of fair
value.
③ Social insurance premiums and housing accumulation funds such as health insurance premiums, work injury premiums,
birth insurance premiums, trade union funds and staff and education funds
The Company pays the medical insurance premiums, work injury insurance premiums, birth insurance premiums, etc. social
insurance premiums and housing accumulation funds for the staff and workers, as well as the union funds and the staff and
workers education funds according to the regulations, in the accounting period for which the staff and workers provide services,
the corresponding salary amount of the staff and workers, and confirms the corresponding liabilities, which are included in the
current profit and loss or related asset costs.
④ Short-term paid leave
The Company accumulates the salary of the employees who are absent from work with pay when the employees provide
service, thus increasing their future right of absence with pay. The Company confirms the salary of the employee related to the
absence of non-cumulative salary during the actual absence accounting period.
⑤ Short-term profit share program
If the profit-sharing plan meets the following conditions at the same time, the Company shall confirm the salary payable to
the staff and workers:
A. The legal or presumptive obligation of the enterprise to pay the remuneration of its employees as a result of past matters;
B. The amount of employee compensation obligations due to the profit sharing plan can be reliably estimated.
(2) Accounting of post-employment welfare
The 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 the earliest of the following two and shall be included in the current profit and loss:
① An enterprise may not unilaterally withdraw the resignation benefits provided for by the dismissal plan or reduction
proposal;
② When the enterprise recognizes the costs or expenses related to the reorganization involving the payment of resignation
benefits.
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;
96
Interim Report 2022 of China Fangda Group Co., Ltd.
(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 rate 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 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 Company;
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.
97
Interim Report 2022 of China Fangda Group Co., Ltd.
If there are two or more performance obligations in the contract, the Company will allocate the transaction price to each
single performance obligation according to the relative proportion of the separate selling price of the goods or services promised
by each single performance obligation on the start date of the contract, and measure the income according to the transaction price
allocated to each single performance obligation.
The transaction price refers to the amount of consideration that the Company is expected to be entitled to receive due to the
transfer of goods or services to customers, excluding the amount collected on behalf of a third party. When determining the
contract transaction price, if there is a variable consideration, the Company shall determine the best estimate of the variable
consideration according to the expected value or the most likely amount, and include it in the transaction price with the amount not
exceeding the accumulated recognized income when the relevant uncertainty is eliminated, which is most likely not to have a
significant reversal. If there is a significant financing component in the contract, the Company will determine the transaction price
according to the amount payable in cash when the customer obtains the control right of the commodity. The difference between
the transaction price and the contract consideration will be amortised by the effective interest method during the contract period. If
the interval between the control right transfer and the customer's payment is less than one year, the Company will not consider the
financing component Points.
If one of the following conditions is met, the performance obligation shall be performed within a certain period of time;
otherwise, the performance obligation shall be performed at a certain point of time:
① When the customer performs the contract in the Company, he obtains and consumes the economic benefits brought by the
Company's performance;
② Customers can control the goods under construction during the performance of the contract;
③ The goods produced by the Company in the process of performance have irreplaceable uses, and the Company has the
right to collect money for the performance part that has been completed so far during the whole contract period.
For the performance obligations performed within a certain period of time, the Company shall recognize the revenue
according to the performance progress within that period, except that the performance progress cannot be reasonably determined.
The Company determines the performance schedule of providing services according to the input method. When the progress of
performance cannot be reasonably determined, if the cost incurred by the Company is expected to be compensated, the revenue
shall be recognized according to the amount of cost incurred until the progress of performance can be reasonably determined.
For the performance obligation performed at a certain time point, the Company recognizes the revenue at the time point when
the customer obtains the control right of relevant goods. In determining whether a customer has acquired control of goods or
services, the Company will consider the following signs:
① The Company has the right to receive payment for the goods or services, that is, the customer has the obligation to pay for
the goods;
② The Company has transferred the legal ownership of the goods to the customer, that is, the customer has the legal
ownership of the goods;
③ The Company has transferred the goods in kind to the customer, that is, the customer has possessed the goods in kind;
④ The Company has transferred the main risks and rewards of the ownership of the goods to the customer, that is, the
customer has obtained the main risks and rewards of the ownership of the goods;
⑤ The product has been accepted by the customer.
Sales return clause
98
Interim Report 2022 of China Fangda Group Co., Ltd.
For the sales with sales return clauses, when the customer obtains the control right of the relevant goods, the Company shall
recognize the revenue according to the amount of consideration it is entitled to obtain due to the transfer of the goods to the
customer, and recognize the amount expected to be returned due to the sales return as the estimated liability; at the same time, the
Company shall deduct the estimated cost of recovering the goods according to the book value of the expected returned goods at the
time of transfer（ The balance after deducting the value of the returned goods is recognized as an asset, that is, the cost of return
receivable, which is carried forward by deducting the net cost of the above assets according to the book value of the transferred
goods at the time of transfer. On each balance sheet date, the Company re estimates the return of future sales and re measures the
above assets and liabilities.
Warranty obligations
According to the contract and legal provisions, the Company provides quality assurance for the goods sold and the projects
constructed. For the guarantee quality assurance to ensure that the goods sold meet the established standards, the Company
conducts accounting treatment in accordance with the accounting standards for Business Enterprises No. 13 - contingencies. For
the service quality assurance which provides a separate service in addition to guaranteeing that the goods sold meet the established
standards, the Company takes it as a single performance obligation, allocates part of the transaction price to the service quality
assurance according to the relative proportion of the separate selling price of the goods and service quality assurance, and
recognizes the revenue when the customer obtains the service control right. When evaluating whether the quality assurance
provides a separate service in addition to assuring customers that the goods sold meet the established standards, the Company
considers whether the quality assurance is a statutory requirement, the quality assurance period, and the nature of the Company's
commitment to perform the task.
Customer consideration payable
If there is consideration payable to the customer in the contract, unless the consideration is to obtain other clearly
distinguishable goods or services from the customer, the Company will offset the transaction price with the consideration payable,
and offset the current income at the later time of confirming the relevant income or paying (or promising to pay) the customer's
consideration.
Contractual rights not exercised by customers
If the Company advances sales of goods or services to customers, the amount shall be recognized as liabilities first, and then
converted into income when relevant performance obligations are fulfilled. When the Company does not need to return the
advance payment and the customer may give up all or part of the contract rights, if the Company expects to have the right to obtain
the amount related to the contract rights given up by the customer, the above amount shall be recognized as income in proportion
according to the mode of the customer exercising the contract rights; otherwise, the Company only has the very low possibility of
the customer requiring to perform the remaining performance obligations The relevant balance of the above liabilities is converted
into income.
Contract change
When the construction contract between the Company and the customer is changed:
① If the contract change increases the clearly distinguishable construction service and contract price, and the new contract
price reflects the separate price of the new construction service, the Company will treat the contract change as a separate contract
for accounting;
② If the contract change does not belong to the above-mentioned situation (1), and there is a clear distinction between the
transferred construction service and the non transferred construction service on the date of contract change, the Company will
regard it as the termination of the original contract, and at the same time, combine the non performance part of the original
contract and the contract change part into a new contract for accounting treatment;
99
Interim Report 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 the performance obligations within a certain period of time, and recognizes
the income according to the performance progress, except that the performance progress cannot be reasonably determined. The
Company determines the performance schedule of providing services according to the input method. The performance schedule
shall be determined according to the proportion of the actual contract cost to the estimated total contract cost. On the balance sheet
date, the Company re estimates the progress of completed or completed services to reflect the changes in performance.
④ Real estate sales contract
The income of the Company's real estate development business is recognized when the control of the property is transferred
to the customer. Based on the terms of the sales contract and the legal provisions applicable to the contract, the control of the
property can be transferred within a certain period of time or at a certain point in time. Only if the goods produced by the
Company during the performance of the contract have irreplaceable uses, and the Company has the right to collect payment for the
cumulative performance part that has been completed during the entire contract period, the performance obligation has been
completed during the contract period. 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
100
Interim Report 2022 of China Fangda Group Co., Ltd.
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 purchase, build or formulate in other manners long-
term assets; or subsidies related to benefits. If the asset-related government subsidy is recognized as deferred gain, should be
recorded in gain and loss in the service life. Government subsidy measured at the nominal amount is accounted into current
income account. If the relevant assets are sold, transferred, scrapped or damaged before the end of their useful life, the unallocated
relevant deferred income balance shall be transferred to the profit and loss of the current period of disposition of the assets.
Gain-related government subsidy should be accounted as follows:
The Company divides government subsidies into assets-related and earnings-related government subsidies. Gain-related
government subsidy should be accounted as follows:
Subsidy that will be used to compensate related future costs or losses should be recognized as deferred gain and recorded in
the gain and loss of the current report and offset related cost;
Subsidy that is used to compensate existing cost or loss should be recorded in the gain and loss of the current period or offset
related cost.
For government subsidies that include both asset-related and income-related parts, separate different parts for accounting
treatment; It is difficult to distinguish between the overall classification of government subsidies related to benefits.
Government subsidy related to routine operations should be recorded in other gains or offset related cost. Government
subsidy not related to routine operations should be recorded in non-operating income or expense.
③ Policy preferential loan discount
The policy-based preferential loan obtained has interest subsidy. If the government allocates the interest-subsidy funds to the
lending bank, the loan amount actually received will be used as the entry value of the loan, and the borrowing cost will be
calculated based on the loan principal and policy-based preferential interest rate.
If the government allocates the interest-bearing funds directly to the Group, discount interest will offset the borrowing costs.
101
Interim Report 2022 of China Fangda Group Co., Ltd.
④ Government subsidy refund
When a confirmed government subsidy needs to be returned, the book value of the asset is adjusted against the book value of
the relevant asset at initial recognition. If there is a related deferred income balance, the book balance of the related deferred
income is written off and the excess is credited to the current profit or loss; In other cases, it is directly included in the current
profit and loss.
32. Differed income tax assets and differed income tax liabilities
The Company uses the temporary difference between the book value of the assets and liabilities on the balance sheet day and
the tax base and the liabilities method to recognize the deferred income tax. 26. Deferred income tax assets and deferred income
tax liabilities
(1) Deferred income tax assets
For deductible temporary discrepancies, deductible losses and tax offsets that can be carried forward for future years, the
impact on income tax is calculated at the estimated income tax rate for the transfer-back period and the impact is recognized as
deferred income tax assets, provided that the Company is likely to obtain future taxable income for deductible temporary
discrepancies, deductible losses and tax offsets.
At the same time, the impact on income tax of deductible temporary discrepancies resulting from the initial recognition of
assets or liabilities in transactions or matters with the following characteristics is inconclusive as deferred income tax assets:
A. The transaction is not a business combination;
B. the transaction is not a merger and the transaction does not affect the accounting profit or taxable proceeds;
In the event of temporary discrepancy of deductible investment related to subsidiaries, joint ventures and joint ventures, and
meeting the following two conditions, the amount of impact (talent) on income tax shall be deemed as deferred income tax assets:
A. Temporary discrepancies are likely to be reversed in the foreseeable future;
B. In the future, it is likely to obtain taxable income that can be used to offset the deductible temporary differences;
On the balance sheet date, if there is conclusive evidence that sufficient taxable income is likely to be obtained in the future to
offset the deductible temporary differences, the deferred income tax assets that have not been recognized in the previous period are
recognized.
On the balance sheet day, the Company re-examines the book value of the deferred income tax assets. If it is unlikely to have
adequate taxable proceeds to reduce the benefits of the deferred income tax assets, less the deferred income tax assets' book value.
When there is adequate taxable proceeds, the lessened amount will be reversed.
(2) Deferred income tax assets
All provisional differences in taxable income of the Company shall be measured on the basis of the estimated income tax rate
for the period of transfer-back and shall be recognized as deferred income tax liabilities, except that:
At the same time, the impact on income tax of deductible temporary discrepancies resulting the initial recognition of assets or
liabilities in transactions or matters with the following characteristics is inconclusive as deferred income tax Liabilities:
A. Initial recognition of goodwill;
B. Initial recognition of goodwill, or of assets or liabilities generated in transactions with the following features: the
transaction is not a merger and the transaction does not affect the accounting profit or taxable proceeds;
102
Interim Report 2022 of China Fangda Group Co., Ltd.
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 goodwill in enterprise merger.
② Amount of shares paid and accounted as owners' equity
Except for the adjustment goodwill generated by mergers or deferred income tax related to transactions or events directly
accounted into the owners' equity, income tax is accounted as income tax expense into the current gain/loss account. The effects of
temporary discrepancy on income tax include the following: Other integrated benefits such as fair value change of financial assets
available for sale, retroactive adjustment of accounting policy changes or retroactive restatement of accounting error correction
discrepancy to adjust the initial retained income, and mixed financial instruments including liabilities and equity.
③ Compensation for losses and tax deductions
A. Compensable losses and tax deductions from the Company's own operations
Deductible losses refer to the losses calculated and determined in accordance with the provisions of the tax law that are
allowed to be made up with the taxable income of subsequent years. The uncovered losses (deductible losses) and tax deductions
that can be carried forward in accordance with the tax law are treated as deductible temporary differences. When it is expected that
sufficient taxable income is likely to be obtained in the future period when it is expected to be available to make up for losses or
tax deductions, the corresponding deferred income tax assets are recognized within the limit of the taxable income that is likely to
be obtained, while reducing the current period Income tax expense in the income statement.
B. Compensable uncovered losses of the merged company due to business merger
In a business combination, if the Company obtains the deductible temporary difference of the purchased party and does not
meet the deferred income tax asset recognition conditions on the purchase date, it shall not be recognized. Within 12 months after
the purchase date, if new or further information is obtained indicating that the relevant conditions on the purchase date already
exist, and the economic benefits brought about by the temporary difference are expected to be deducted on the purchase date,
confirm the relevant delivery. Deferred income tax assets, while reducing goodwill, if the goodwill is not enough to offset, the
difference is recognized as the current profit and loss; except for the above circumstances, the deferred tax assets related to the
business combination are recognized and included in the current profit and loss.
④Temporary difference caused by merger offset
If there is a temporary difference between the book value of assets and liabilities in the consolidated balance sheet and the
taxable basis of the taxpayer due to the offset of the unrealized internal sales gain or loss, the deferred income tax asset or the
deferred income tax liability is confirmed in the consolidated balance sheet, and the income tax expense in the consolidated profit
statement is adjusted, with the exception of the deferred income tax related to the transaction or event directly included in the
owner's equity and the merger of the enterprise.
⑤ Share payment settled by equity
103
Interim Report 2022 of China Fangda Group Co., Ltd.
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.
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 whether 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 contract.
(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 Chapter X, 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
104
Interim Report 2022 of China Fangda Group Co., Ltd.
obtained by the 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 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
105
Interim Report 2022 of China Fangda Group Co., Ltd.
The Company assesses and determines whether the asset transfer in the sale and leaseback transaction is a sale in accordance
with the provisions of 30. Income in Chapter X, 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 Chapter X, V, Important accounting policies and accounting estimates. If
the asset transfer belongs to sales, the Cmpany 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 Chapter X, V. Important accounting policies and accounting estimates. If the
asset transfer belongs 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 prices in the main market. If there is no major
market, the Company measures the fair value of the relevant assets or liabilities at the most favorable market prices. The Group
uses assumptions that market participants use to maximize their economic benefits when pricing the asset or liability.
The main market refers to the market with the highest transaction volume and activity of the related assets or liabilities. The
most favorable market means the market that can sell the related assets at the highest amount or transfer the related liabilities at the
lowest amount after considering the transaction cost and transportation cost.
For financial assets or liabilities in an active market, The Company determines their fair value based on quotations in the
active market. If there is no active market, the Company uses evaluation techniques to determine the fair value.
For the measurement of non-financial assets at fair value, the ability of market participants to use the assets for optimal
purposes to generate economic benefits, or the ability to sell the assets to other market participants that can be used for optimal
purposes to generate economic benefits.
① Valuation technology
The Company adopts valuation techniques that are applicable in the current period and are supported by sufficient data and
other information. The valuation techniques used mainly include market method, income method and cost method. The Company
uses a method consistent with one or more of the valuation techniques to measure fair value. If multiple valuation techniques are
used to measure fair value, the reasonableness of each valuation result shall be considered, and the fair value shall be selected as
the most representative of fair value under the current circumstances. The amount of value is regarded as fair value.
The The Company equipment are applicable in the current circumstances and have sufficient available data and other
information to support the use of the relevant observable input values prioritized. Unobservable input values are used only when
the observable input value cannot be obtained or is not feasible. Observable input values are input values that can be obtained from
106
Interim Report 2022 of China Fangda Group Co., Ltd.
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 change in cash flow is derived from specific risks associated
with recognized assets or liabilities, expected transactions that are likely to occur, or with respect to the components of the above-
mentioned project and will affect the profits and losses of the enterprise.
(2.2) Hedging tools and hedged projects
Hedging means a financial instrument designated by the Company for the purpose of hedging, whose fair value or cash flow
variation is expected to offset the fair value or cash flow variation of the hedged item, including:
① Financial liabilities measured at fair value with variations accounted into current income account Check-out options can
only be used as a hedging tool if the option is hedged, including those embedded in a hybrid contract. Derivatives embedded in a
hybrid contract but not split cannot be used as separate hedging tools.
② Non-derivative financial assets or non-derivative financial liabilities that are measured at fair value and whose changes are
included in the current profit and loss, but designated as fair value and whose changes are included in the current profit and loss,
and their own credit risk changes caused by changes in fair value except for financial liabilities included in other comprehensive
income.
Own equity instruments are not financial assets or financial liabilities and cannot be used as hedging instruments.
A hedged item refers to an item that exposes the Company to the risk of changes in fair value or cash flow and is designated
as the hedged object and can be reliably measured. The Company designates the following individual projects, project portfolios or
their components as hedged projects:
① Confirmed assets or liabilities.
② Confirmed commitments that have not yet been confirmed. Confirmed commitment refers to a legally binding agreement
to exchange a specific amount of resources at an agreed price on a specific date or period in the future.
③ Expected transactions that are likely to occur. Anticipated transactions refer to transactions that have not yet been
committed but are expected to occur.
④ Net investment in overseas operations.
The above-mentioned project components refer to the parts that are less than the overall fair value or cash flow changes of the
project. The Company designates the following project components or their combinations as hedged items:
107
Interim Report 2022 of China Fangda Group Co., Ltd.
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 the fair value or cash flow variation of the hedged item, including: Such hedges are continuously evaluated on and after the
initial specified date to meet the requirements for hedging validity.
If the hedging instrument has expired, been sold, the contract is terminated or exercised (but the extension or replacement as
part of the hedging strategy is not treated as expired or contract termination), or the risk management objective changes, resulting
in hedging The relationship no longer meets the risk management objectives, or the economic relationship between the hedged
item and the hedging instrument no longer exists, or the impact of credit risk begins to dominate in the value changes caused by
the economic relationship between the hedged item and the hedging instrument, or when the hedge no longer meets the other
conditions of the hedge accounting method, the Company terminates the use of hedge accounting.
If the hedging relationship no longer meets the requirements for hedging effectiveness due to the hedging ratio, but the risk
management objective of the designated hedging relationship has not changed, the Company shall rebalance the hedging
relationship.
(2.4) 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 the hedging. The
amount in the effective arbitrage is recognized by the accumulative gains or losses from the starting of arbitrage and accumulative
changes to the current value of future forecast cash flows from the start of arbitrage.
If the expected transaction of the hedged asset is subsequently recognized as a non-financial asset or non-financial liability, or
if the expected transaction of the non-financial asset or non-financial liability forms a defined commitment to the applicable fair
value hedge accounting, the amount of the cash flow hedge reserve originally recognized in the other consolidated income is
transferred out to account for the initial recognized amount of the asset or liability. For the remaining cash flow hedges, during the
108
Interim Report 2022 of China Fangda Group Co., Ltd.
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 (share capital premium) that is
less than the total face value and less than the total face value.
(3.2) The total expenditure of the repurchase shares of the Company, which is managed as an inventory share before they are
cancelled or transferred, is converted to the cost of the inventory shares.
(3.3) Increase in the capital reserve (capital premium) at the time of transfer of an inventory unit, the portion of the transfer
income above the cost of the inventory unit; Lower than the inventory stock cost, the capital reserve (share capital premium),
surplus reserve, undistributed profits in turn.
(4) Significant accounting judgment and estimate
The 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 only the
unpaid principal and the interest based on the unpaid principal, as well as the reasonable compensation paid for early termination
of the contract.
Measurement of expected credit losses of accounts receivable
The 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 losses.
Deferred income tax assets
109
Interim Report 2022 of China Fangda Group Co., Ltd.
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
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 contract 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 contract 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 tax Taxable turnover 1%, 5%, 7%
110
Interim Report 2022 of China Fangda Group Co., Ltd.
Enterprise income tax Taxable income See the following table
Education surtax Taxable turnover 3%
Local education surtax Taxable turnover 2%
Tax rates applicable for different tax payers
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 New Material) 15%
Dongguan Fangda New Material Co., Ltd. (hereinafter Fangda Dongguan New
15%
Material)
Chengdu Fangda Construction Technology Co., Ltd. (hereinafter Fangda Chengdu
15%
Technology)
Shenzhen Fangda Property Development Co., Ltd. (hereinafter Fangda Property
25%
Development)
Shenzhen Fangda New Energy Co., Ltd. (hereinafter Fangda New Energy) 25%
Shenzhen Fangda Property Development Co., Ltd. (hereinafter Fangda Property
25%
Development)
Jiangxi Fangda Property Development Co., Ltd. (hereinafter Fangda Jiangxi Property
25%
Development)
Pingxiang Fangda Luxin New Energy Co., Ltd. (hereinafter Fangda Luxin New Energy) 25%
Nanchang Xinjian Fangda New Energy Co., Ltd. (hereinafter Fangda Xinjian New
25%
Energy)
Dongguan Fangda New Energy Co., Ltd. (hereinafter Fangda Dongguan New Energy) 25%
Shenzhen QIanhai Kechuangyuan Software Co., Lt.d (hereinafter Kechuangyuan
25%
Software)
Fangda Zhichuang Technology (Hong Kong) Co., Ltd, (Fangda Zhichuang Hong Kong) 16.50%
Fangda Zhiyuan Technology (Wuhan) Co., Ltd, (Fangda Wuhan Zhiyuan) 25%
Fangda Zhiyuan Technology (Nanchang) Co., Ltd, (Fangda Nanchang Zhiyuan) 25%
Fangda Zhichuang Technology (Dongguan) Co., Ltd, (Fangda Dongguan Zhichuang) 25%
General Rail Technology Private Limited 17%
Shihui International Holding Co., Ltd. (hereinafter Fangda Shihui International) 16.50%
Shenzhen Hongjun Investment Co., Ltd. (hereinafter Fangda Hongjun Investment) 25%
Fangda Australia Pty Ltd (hereinafter Fangda Australia) 30%
Shanghai Fangda Zhijian Technology Co., Ltd. (hereinafter referred to as Fangda
15%
Shanghai Zhijian company)
Shenzhen Fangda Yunzhi Technology Co., Ltd. (hereinafter Fangda Yunzhi) 25%
Shanghai Fangda Jianzhi Technology Co., Ltd. (hereinafter Fangda Shanghai Jianzhi) 25%
Shenzhen Zhongrong Litai Investment Co. Ltd. (Zhongrong Litai) 25%
Chengdu Fangda Curtain Wall Technology Co., Ltd. (hereinafter Fangda Chengdu
25%
Curtain Wall)
Fangda Southeast Asia Co., Ltd. (hereinafter Fangda Southeast Asia) 20%
Shenzhen Xunfu Investment Co., Ltd. (hereinafter referred to as Fangda Xunfu
25%
Investment)
Shenzhen Lifu Investment Co., Ltd. (hereinafter referred to as Fangda Lifu Investment) 25%
Shenzhen Fangda Investment Partnership (Limited Partnership) (hereinafter referred to
Inapplicable
as Fangda Investment)
Fangda Jianke (Hong Kong) Co., Ltd. (hereinafter Fangda Jianke Hong Kong) 16.50%
Shenzhen Fangda Yunzhu Technology Co., Ltd. (hereinafter Fangda Yunzhu) 15%
Shenzhen Yunzhu Testing Technology Co., Ltd. (Hereinafter Fangda Yunzhu Testing) 25%
111
Interim Report 2022 of China Fangda Group Co., Ltd.
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 number 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 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. 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 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.
112
Interim Report 2022 of China Fangda Group Co., Ltd.
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 deposited in
44,695,303.07 43,244,091.68
overseas
The total amount of money
that has restrictions on use due to 437,397,096.43 395,312,687.73
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 statement, 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 RMB44,695,303.07.
2. Transactional financial assets
In RMB
Item Closing balance Opening balance
Financial assets measured at fair value
with variations accounted into current 32,133,168.82 25,135,241.89
income account
Including: Investment of financial
32,133,168.82 25,135,241.89
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
113
Interim Report 2022 of China Fangda Group Co., Ltd.
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 Remaining book
Bad debt provision Bad debt provision
Type value Book value Book
Proporti Provisio value Proporti Provisio value
Amount Amount Amount Amount
on n rate on n rate
Includ
ing:
Notes
receivab
le with
159,888, 2,693,11 157,195, 168,962, 2,584,70 166,377,
provisio 100.00% 1.68% 100.00% 1.53%
645.58 4.32 531.26 589.90 9.89 880.01
n for bad
debts by
portfolio
Includ
ing:
Bank
10,149,2 10,149,2 32,759,4 32,759,4
acceptan 6.35% 0.00 0.00% 19.39%
96.82 96.82 46.43 46.43
ce
Commer 136,203, 80.61% 2,584,70 1.90% 133,618,
cial 149,739, 2,693,11 147,046, 143.47 9.89 433.58
93.65% 1.80%
acceptan 348.76 4.32 234.44
ce
159,888, 2,693,11 157,195, 168,962, 2,584,70 166,377,
Total 100.00% 1.68% 100.00% 1.53%
645.58 4.32 531.26 589.90 9.89 880.01
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
114
Interim Report 2022 of China Fangda Group Co., Ltd.
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
Type Written-back or Closing balance
balance Provision Canceled Others
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
Amount transferred to accounts receivable at the end of the
Item
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 Remaining book
Bad debt provision Bad debt provision
Type value Book value Book
Proporti Provisio value Proporti Provisio value
Amount Amount Amount Amount
on n rate on n rate
Account
receivab
le for
which
83,718,6 78,221,0 5,497,62 83,718,6 78,221,0 5,497,62
bad debt 11.61% 93.43% 11.18% 93.43%
40.10 18.60 1.50 40.09 18.60 1.49
provisio
n is
made by
group
115
Interim Report 2022 of China Fangda Group Co., Ltd.
Includin
g:
1.
54,873,2 54,873,2 54,873,2 54,873,2
Custome 7.61% 100.00% 0.00 7.32% 100.00% 0.00
23.21 23.21 23.21 23.21
r1
2.
4,388,33 4,388,33 4,388,33 4,388,33
Custome 0.61% 100.00% 0.00 0.59% 100.00% 0.00
8.91 8.91 8.91 8.91
r2
3.
13,461,8 13,461,8 13,461,8 13,461,8
Custome 1.87% 100.00% 0.00 1.80% 100.00% 0.00
34.96 34.96 34.96 34.96
r3
4.
5,996,38 2,998,19 2,998,19 5,996,38 2,998,19 2,998,19
Custome 0.83% 50.00% 0.80% 50.00%
2.91 1.46 1.45 2.91 1.46 1.45
r4
5.
4,998,86 2,499,43 2,499,43 4,998,86 2,499,43 2,499,43
Custome 0.69% 50.00% 0.67% 50.00%
0.11 0.06 0.04 0.10 0.06 0.04
r5
Account
receivab
le for
which
637,479, 87,335,6 550,143, 664,994, 114,038, 550,956,
bad debt 88.39% 13.70% 88.82% 17.15%
622.48 75.31 947.17 519.44 316.73 202.71
provisio
n is
made by
group
Includin
g:
1.
Portfolio
1:
Engineer 403,584, 73,771,3 329,812, 414,989, 101,816, 313,172,
55.96% 18.28% 55.43% 24.53%
ing 043.08 40.16 702.92 471.61 476.32 995.29
operatio
ns
section
2.
Portfolio
2: Real
146,169, 7,760,22 138,408, 153,920, 7,774,66 146,146,
estate 20.27% 5.31% 20.56% 5.05%
177.61 2.96 954.65 735.18 0.29 074.89
business
payment
s
3.
Portfolio
87,726,4 5,804,11 81,922,2 96,084,3 4,447,18 91,637,1
3: Other 12.16% 6.62% 12.83% 4.63%
01.79 2.19 89.60 12.65 0.12 32.53
business
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 Provision rate Reason
116
Interim Report 2022 of China Fangda Group Co., Ltd.
value
1. Customer credit status deteriorates and is
54,873,223.21 54,873,223.21 100.00%
Customer 1 hard to recover
2. Customer credit status deteriorates and is
4,388,338.91 4,388,338.91 100.00%
Customer 2 hard to recover
3. Customer credit status deteriorates and is
13,461,834.96 13,461,834.96 100.00%
Customer 3 hard to recover
4.
5,996,382.91 2,998,191.46 50.00% Customer credit status deteriorates
Customer 4
5.
4,998,860.10 2,499,430.06 50.00% Customer credit status deteriorates
Customer 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%
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 Chapter X, 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%
117
Interim Report 2022 of China Fangda Group Co., Ltd.
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
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 deteriorates Yes
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 deteriorates Yes
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-back Closing balance
Provision Canceled Others
or recovered
Separate bad debt
78,221,018.60 78,221,018.60
provision
Provision for bad
114,038,316.73 -26,702,641.42 87,335,675.31
debts by 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
Closing balance of accounts Balance of bad debt provision
Entity Percentage (%)
receivable at the end of the period
118
Interim Report 2022 of China Fangda Group Co., Ltd.
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
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
119
Interim Report 2022 of China Fangda Group Co., Ltd.
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%
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 RMB8,467,290.80, 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 advanced
38,107,332.07 31,857,018.14
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
120
Interim Report 2022 of China Fangda Group Co., Ltd.
First stage Second stage Third stage
Expected credit loss for
Bad debt provision Expected credit loss for Total
Expected credit losses the entire duration
the entire duration (no
in the next 12 months (credit impairment has
credit impairment)
occurred)
Balance on January 1,
2,216,451.18 573,868.37 19,199,335.56 21,989,655.11
2022
Balance on January 1,
2022 in the current
period
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
Type Written-back Closing balance
balance Provision Canceled Others
or recovered
Other receivables and
21,989,655.11 1,573,847.00 23,563,502.11
bad debt 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 provision
Entity By nature Closing balance Age Percentage (%)
at the end of the
period
Shenzhen Yikang Real Estate Margin and 70,062,675.83 3-4 years 34.51% 1,401,253.52
121
Interim Report 2022 of China Fangda Group Co., Ltd.
Co. Ltd. current account
Bangshen Electronics
Deposit 20,000,000.00 4-5 years 9.85% 400,000.00
(Shenzhen) Co., Ltd.
Shenzhen Rijiasheng Trading
Arrears 18,708,945.57 1-2 years 9.22% 1,870,894.56
Co., Ltd
Over 5
Luo Huichi Arrears 12,992,291.48 6.40% 12,992,291.48
years
Shenzhen Henggang Dakang
Deposit 8,000,000.00 3-4 years 3.94% 160,000.00
Co., Ltd.
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
Item depreciation depreciation
Remaining book Remaining book
or contract Book value or contract Book value
value value
performanc performance
e cost 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 materials 145,821,074.44 145,821,074.44 87,964,749.50 87,964,749.50
Product in
22,899,157.31 22,899,157.31 71,066,791.34 71,066,791.34
process
Finished goods
11,413,803.15 11,413,803.15 7,514,662.13 7,514,662.13
in stock
Low price
28,990.66 28,990.66 190,365.86 190,365.86
consumable
OEM materials 16,276,453.42 16,276,453.42 16,568,559.12 16,568,559.12
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
Project Starting Estimat Estimat Openin Transfe Other Increas Closing Accum Includi Capital
name time ed ed total g rred to decreas e balance ulative ng: source
122
Interim Report 2022 of China Fangda Group Co., Ltd.
finish investm balance develop e in this (develo capitali capitali
time ent ment period pment zed zed
product cost) in interest interest
in this this for the
period period current
period
Dakang Bank
Village loan
Decem Decem 3,600,0
Project 199,023 595,338 199,618 and
ber 1, ber 31, 00,000.
in ,484.28 .13 ,822.41 self-
2024 2030 00
Shenzh owned
en fund
Bank
Fangda
loan
Bangsh Decem Decem
870,000 15,135, 1,767,3 16,903, and
en ber 1, ber 31,
,000.00 847.34 32.33 179.67 self-
Industr 2023 2025
owned
y Park
fund
4,470,0
214,159 2,362,6 216,522
Total 00,000.
,331.62 70.46 ,002.08
00
Disclose the main project information of "Development Products" according to the following format:
In RMB
Including:
capitalize
Accumulative
Completion Incre d interest
Project name Opening balance Decrease Closing balance capitalized
time ase for the
interest
current
period
29
Phase I of
December 62,930,177.37 10,703,725.24 52,226,452.13 2,009,651.62
Fangda 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 2,088,604,051. 1,920,159,740. 1,840,664,586. 1,696,585,543.
168,444,310.53 144,079,042.31
project funds 45 92 03 72
Unexpired
91,989,366.02 8,709,913.62 83,279,452.40 63,551,208.32 10,907,883.76 52,643,324.56
warranty
123
Interim Report 2022 of China Fangda Group Co., Ltd.
deposit
Sales funds
with
47,400,395.42 3,784,739.50 43,615,655.92 34,103,742.16 384,937.31 33,718,804.85
conditional
collection right
2,227,993,812. 2,047,054,849. 1,938,319,536. 1,782,947,673.
Total 180,938,963.65 155,371,863.38
89 24 51 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 rights arising from the
Unsettled project funds 223,574,197.20
revenue recognized in the project contract during
the reporting period
Mainly due to the increase of projects in the
Unexpired warranty deposit 30,636,127.84 warranty period after the completion 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 in Written off in the
Item Provision Reason
the current period current period
Unsettled project funds 24,365,268.22
Unexpired warranty deposit -2,197,970.14
Sales funds with
3,399,802.19
conditional collection 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 income
84,983,087.01 98,092,258.00
tax
Other prepaid taxes 21,991,159.61 8,520,856.65
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
Investe Openin Change (+,-) Closing Balance
124
Interim Report 2022 of China Fangda Group Co., Ltd.
d entity g book Investm book of
value ent gain value impair
Other Cash ment
and loss
Increas Decreas miscell dividen Impair provisi
recogni Other
ed ed aneous d or ment on at
zed equity Others
investm investm income profit provisi the end
using change
ent ent adjustm announ on of the
the
ent ced period
equity
method
1. Joint venture
2. Associate
Gansha
ng Joint 2,365,3 3,789.0 2,369,1
Investm 99.31 3 88.34
ent
Jiangxi
Busines
s
Innovat
ive
Propert -
52,853, 52,816,
y Joint 36,763.
546.83 783.65
Stock 18
(Jiangxi
Busines
s
Inovati
on)
-
Subtota 55,218, 55,185,
32,974.
l 946.14 971.99
15
-
55,218, 55,185,
Total 32,974.
946.14 971.99
15
13. Investment in other equity tools
In RMB
Item Closing balance Opening balance
Unlisted equity instrument investment 14,180,652.65 14,180,652.65
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
Reason for
other at fair value
Dividend transfer of
comprehens with
recognize Total other
Item Total loss ive income variations
d in the gain miscellaneou
transferred accounted into
period s into
to retained current
income
earnings income
account
125
Interim Report 2022 of China Fangda Group Co., Ltd.
Shenyang Fangda Semi-conductor
Lighting Co., Ltd. (hereinafter 14,381,923.02
Shenyang Fangda)
Shenzhen Huihai Yirong Internet
3,779,277.52
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 into current 7,504,750.83 7,525,408.24
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
2. Increase in this period 224,704.02 224,704.02
(1) Provision or amortization 224,704.02 224,704.02
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
126
Interim Report 2022 of China Fangda Group Co., Ltd.
(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
Reason for
Project Completion Building income in Opening Closing fair Change in
Location the change
name time area (m2) the report fair value value fair value
and report
period
Commercia
l podium of 11 October 17,144,114. 1,344,899,0 1,344,899,0
Shenzhen 22,551.58 0.00%
Fangda 2017 39 32.00 32.00
Town
Building
29
1# of 43,210,570. 3,640,588,8 3,640,588,8
Shenzhen December 76,623.31 0.00%
Fangda 72 48.63 48.63
2018
Town
28
Fangda 8,968,746.7 329,471,98 329,471,98
Shenzhen December 17,432.38 0.00%
Building 8 2.00 2.00
2002
Nanchang
December 5,165,210.2 436,493,83 434,626,56
Fangda Nanchang 37,725.82 -0.43%
10, 2020 2 8.47 3.56
Center
74,488,642. 5,751,453,7 5,749,586,4
Total 154,333.09 -0.03%
11 01.10 26.19
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#
17,345,966.44 The acceptance record is being handled
building commercial
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
127
Interim Report 2022 of China Fangda Group Co., Ltd.
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
Houses & Mechanical Transportation Electronics and PV power
Item Total
buildings equipment facilities other devices plants
I. Original book
value:
1. Opening
610,564,471.12 120,638,873.28 21,390,928.69 50,870,105.77 129,596,434.84 933,060,813.70
balance
2. Increase in
25,222,586.32 10,418,231.84 11,273.76 1,532,403.47 37,184,495.39
this period
(1) Purchase 10,371,081.60 10,418,231.84 874,368.07 21,663,681.51
(2) Transfer-in
of construction 14,851,504.72 658,035.40 15,509,540.12
in progress
(3) Other
11,273.76 11,273.76
increases
3. Decrease in
2,800,131.20 1,139,518.96 2,663,142.67 1,227,229.26 7,830,022.09
this 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
632,986,926.24 129,917,586.16 18,739,059.78 51,175,279.98 129,596,434.84 962,415,287.00
balance
II.
Accumulative
depreciation
1. Opening
96,553,528.93 91,086,675.44 16,472,796.03 30,931,249.97 34,505,796.22 269,550,046.59
balance
2. Increase in
7,632,627.09 2,552,916.67 363,347.31 1,382,283.41 3,074,220.06 15,005,394.54
this period
(1) Provision 7,632,627.09 2,552,916.67 357,568.71 1,382,283.41 3,074,220.06 14,999,615.94
(2) Other
5,778.60 5,778.60
increases
3. Decrease in
258,186.41 329,705.18 2,396,828.40 1,075,331.21 4,060,051.20
this period
(1) Disposal or
258,186.41 329,705.18 2,396,828.40 1,075,331.21 4,060,051.20
retirement
128
Interim Report 2022 of China Fangda Group Co., Ltd.
4. Closing
103,927,969.61 93,309,886.93 14,439,314.94 31,238,202.17 37,580,016.28 280,495,389.93
balance
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 book
529,058,956.63 36,527,856.03 4,299,744.84 19,920,451.51 92,016,418.56 681,823,427.57
value
2. Opening
514,010,942.19 29,472,354.64 4,918,132.66 19,922,229.50 95,090,638.62 663,414,297.61
book value
(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 Remaining Impairment Remaining book Impairment
Book value Book value
book value provision value provision
Construction
and decoration
of self use part 11,642,444.21 11,642,444.21
of Nanchang
Fangda Center
Decoration of
the self-used
part of Fangda
2,839,581.23 2,839,581.23
Group East
China
Construction
129
Interim Report 2022 of China Fangda Group Co., Ltd.
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
Propor
Includi
Amou tion of
ng:
nt accum Accum
Other capital Interes
Openi Increas transfe Closin ulative ulative
decrea Project ized t
Project ng e in r-in to g engine capital Capital
Budget se in progre interes capital
name balanc this fixed balanc ering ized source
this ss t for ization
e period assets e invest interes
period the rate
in this ment t
current
period in the
period
budget
Constr
uction
and
decora
tion of
self 13,000 11,642 14,732
3,090, 100.00 Compl
use ,000.0 ,444.2 ,500.5 0.00 Others
056.34 % eted
part of 0 1 5
Nanch
ang
Fangd
a
Center
Decora
tion of
the
self-
used
part of
In
Fangd 6,080, 2,839, 2,839, 46.70
constr Others
a 000.00 581.23 581.23 %
uction
Group
East
China
Constr
uction
Base
19,080 11,642 14,732
5,929, 2,839,
Total ,000.0 ,444.2 ,500.5 0.00
637.57 581.23
0 1 5
18. Use right assets
In RMB
Item Houses & buildings Transportation facilities Total
I. Book value
1. Opening balance 37,075,290.17 1,319,251.12 38,394,541.29
130
Interim Report 2022 of China Fangda Group Co., Ltd.
2. Increase in this period 569,163.12 569,163.12
3. Decrease in this
587,910.79 587,910.79
period
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 period 6,310,611.40 304,531.62 6,615,143.02
(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 value 24,597,279.80 405,656.25 25,002,936.05
2. Opening book value 30,730,668.67 710,187.87 31,440,856.54
19. Intangible assets
(1) Intangible assets
In RMB
Item Land using right Patent Software Total
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
III. Impairment provision
1. Opening balance
2. Increase in this period
131
Interim Report 2022 of China Fangda Group Co., Ltd.
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 this Other Closing
Item Opening balance amount in this
period decrease balance
period
Xuanfeng Chayuan village and
Zhuyuan village land transfer 1,028,527.10 28,050.78 1,000,476.32
compensation
Reconstruction project of
231,427.38 57,856.80 173,570.58
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 premium 237,369.99 84,625.00 126,487.93 195,507.06
Plant ground reconstruction
319,593.71 43,581.00 276,012.71
project
High voltage network access
794,750.23 153,822.66 640,927.57
fee of East China 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
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment
285,680,229.38 52,322,012.68 257,631,149.84 48,121,014.85
provision
Unrealized profit of
298,049,521.84 58,293,392.21 281,712,399.14 55,842,834.37
internal transactions
132
Interim Report 2022 of China Fangda Group Co., Ltd.
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 liabilities 3,052,064.92 457,809.74 6,347,809.40 1,161,300.00
Deferred earning 2,753,977.39 429,893.08 3,674,964.26 551,244.65
Change in fair value 2,907,950.88 436,192.63 1,079,130.19 161,869.53
Accrued expenses and
12,967,806.54 2,473,278.36 8,914,405.11 1,339,159.89
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 value 4,200,169,583.79 1,049,852,190.57 4,199,023,889.76 1,049,649,013.70
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 18,022,638.21 4,505,659.55 31,539,658.09 7,884,914.52
does 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 liabilities at deferred income tax
Item assets and liabilities at
assets or liabilities after the beginning of the assets or liabilities after
the end of the period
offsetting period offsetting
Deferred income tax
222,694,829.06 214,123,733.00
assets
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
133
Interim Report 2022 of China Fangda Group Co., Ltd.
(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 assets 94,328,082.78 10,050,259.99 84,277,822.79 72,288,658.32 7,952,729.45 64,335,928.87
Prepaid house
and equipment 27,094,308.28 27,094,308.28 35,693,402.77 35,693,402.77
amount
Certificate of
311,792,353.94 311,792,353.94 306,738,886.82 306,738,886.82
deposit
Others 2,004,460.50 2,004,460.50 1,088,296.93 1,088,296.93
Total 435,219,205.50 10,050,259.99 425,168,945.51 415,809,244.84 7,952,729.45 407,856,515.39
23. Short-term borrowings
(1) Classification of short-term borrowings
In RMB
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 bills 1,146,202,710.82 916,656,430.03
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
134
Interim Report 2022 of China Fangda Group Co., Ltd.
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 implementation
351,215,766.97 327,879,727.83
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
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
135
Interim Report 2022 of China Fangda Group Co., Ltd.
Project funds collected in advance 162,258,562.39 172,696,504.61
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
Item Opening balance Increase Decrease Closing 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-
154,394.34 9,363,619.34 8,995,150.59 522,863.09
defined 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
Item Opening balance Increase Decrease Closing balance
1. Wage, bonus, allowance and
67,487,743.92 164,892,728.43 201,378,714.00 31,001,758.35
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 insurance 41,419.12 3,353,494.02 3,260,889.53 134,023.61
Labor injury insurance 3,048.20 205,068.29 201,086.05 7,030.44
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 staff
569,442.50 448,456.19 440,593.95 577,304.74
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
136
Interim Report 2022 of China Fangda Group Co., Ltd.
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 tax 1,216,772.33 1,153,514.56
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
(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. Ltd. 25,062,852.92 Payment paid as agreed in the contract
Total 25,062,852.92
32. Non-current liabilities due within 1 year
In RMB
137
Interim Report 2022 of China Fangda Group Co., Ltd.
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 year 10,047,645.41 12,784,437.21
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 loan 1,370,374,849.32 1,399,134,120.55
Less: Long-term loans due within 1 year 71,874,849.32 65,634,120.55
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 Fangda
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, buildings
15,837,405.86 19,152,093.31
and means of transport
Total 15,837,405.86 19,152,093.31
36. Long-term payables
In RMB
Item Closing balance Opening balance
138
Interim Report 2022 of China Fangda Group Co., Ltd.
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
38. Deferred earning
In RMB
Item Opening balance Increase Decrease Closing balance Reason
Government See the following
9,566,525.60 0.00 283,322.58 9,283,203.02
subsidy table
Total 9,566,525.60 0.00 283,322.58 9,283,203.02
Items involving government subsidies:
In RMB
Amount
included Costs
Amount Other misc. Other
Opening in non- offset in Related to
Liabilities of new gains recorded chang Closing balance
balance operatin the assets/earning
subsidy in this period e
g period
revenue
Railway
transport
screen door
controlling
system and 39,845.21 9,452.16 30,393.05 Assets-related
information
transmissio
n
technology
Major
investment
project
1,509,524.30 28,571.40 1,480,952.90 Assets-related
prize from
Industry
and Trade
139
Interim Report 2022 of China Fangda Group Co., Ltd.
Developme
nt Division
of
Dongguan
Finance
Bureau
Distributed
PV power
generation
project
subsidy
sponsored
by 343,750.25 12,499.98 331,250.27 Assets-related
Dongguan
Reform and
Developme
nt
Commissio
n
Subsidized
land 169,827.59 1,862.82 167,964.77 Assets-related
transfer
Special
subsidy for
industrial
transformat
ion, 766,666.65 40,000.02 726,666.63 Assets-related
upgrading
and
developme
nt
Enterprise
information
ization
subsidy
project of
Shenzhen 372,000.00 24,000.00 348,000.00 Assets-related
Small and
Medium
Enterprise
Service
Agency
National
Industry
Revitalizati
on and
5,377,983.50 153,864.30 5,224,119.20 Assets-related
Technology
Renovation
Project
fund
Energy
saving and
environme
ntal
986,928.10 13,071.90 973,856.20 Assets-related
protection
metal
curtain wall
production
140
Interim Report 2022 of China Fangda Group Co., Ltd.
technology
transformat
ion project
Total 9,566,525.60 283,322.58 9,283,203.02
39. Capital share
In RMB
Change (+,-)
Opening balance Issued Transferred Closing balance
Bonus
new from Others Subtotal
shares
shares reserves
Total of
1,073,874,227.00 1,073,874,227.00
capital 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 into written into After-tax
After-tax
Opening other gains other gains amount Closing
Item Amount Less: amount
balance and and attributed balance
before Income tax attributed
transferred transferred to minority
income tax expenses to the
into into shareholder
parent
gain/loss in gain/loss in s
previous previous
terms terms
I. Other
comprehen
sive
income that
- -
will not be
14,565,719. 14,565,719.
subsequentl
78 78
y
reclassified
into profit
and loss
141
Interim Report 2022 of China Fangda Group Co., Ltd.
Fair
value
- -
change of
14,565,719. 14,565,719.
investment
78 78
in other
equity tools
2. Other
misc.
incomes
that will be 49,891,591. - - - 49,441,261.
-10,090.52 22,494.68
re- 56 609,135.29 171,209.17 450,330.27 29
classified
into gain
and loss
Cash -
- -
flow hedge 926,186.62 1,141,394.5 -10,090.52 -33,908.21
171,209.17 960,094.83
reserve 2
Transl
ation
-
difference -
1,391,190.4 532,259.23 509,764.55 22,494.68
of foreign 881,425.92
7
exchange
statement
Investment
real estate
50,356,595. 50,356,595.
measured
41 41
at fair
value
Other
35,325,871. - - - 34,875,541.
miscellane -10,090.52 22,494.68
78 609,135.29 171,209.17 450,330.27 51
ous 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
43. Retained profit
In RMB
Item Current period Last period
Adjustment on retained profit of previous period 4,324,055,259.33 4,215,005,541.52
Total of retained profit at beginning of year adjusted
2,521,701.04
(+ for increase, - for decrease)
Retained profit adjusted at beginning of year 4,324,055,259.33 4,217,527,242.56
Plus: Net profit attributable to owners of the parent 112,685,273.77 111,488,701.33
142
Interim Report 2022 of China Fangda Group Co., Ltd.
Common share dividend payable 53,693,711.35
Adjustment to consolidation of entities under
24,107,813.58
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
Segment 5 -
Contract Segment 1-curtain Segment 2 - rail Segment 3 - real Segment 4 -
other Total
classification wall transit division estate segment new energy
segments
Type of
1,150,768,372.43 300,269,751.24 144,893,896.06 8,159,691.65 8,971,603.92 1,613,063,315.30
product
Including:
Curtain wall
system and 1,150,768,372.43 1,150,768,372.43
materials
Subway
screen door 300,269,751.24 300,269,751.24
and service
Real estate
lease and 144,893,896.06 144,893,896.06
sales
PV power
generation 8,159,691.65 8,159,691.65
products
Others 8,971,603.92 8,971,603.92
Total 1,150,768,372.43 300,269,751.24 144,893,896.06 8,159,691.65 8,971,603.92 1,613,063,315.30
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:
143
Interim Report 2022 of China Fangda Group Co., Ltd.
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
Item Amount occurred in the current period Occurred in previous period
City maintenance and construction tax 2,999,118.26 3,078,129.75
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
Item Amount occurred in the current period Occurred in previous period
Labor costs 11,286,857.24 10,473,510.26
Sales agency fee 2,383,695.88 7,400,124.58
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 assets and
462,611.74 1,297,595.54
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
Item Amount occurred in the current period Occurred in previous 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 assets and
2,678,867.12 1,171,537.38
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
144
Interim Report 2022 of China Fangda Group Co., Ltd.
Total 74,193,251.57 69,502,453.93
48. R&D cost
In RMB
Item Amount occurred in the current period Occurred in previous 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
Item Amount occurred in the current period Occurred in previous period
Interest expense 50,244,714.46 46,707,567.90
Less: interest capitalization 3,070,467.85
Less: discount government subsidies 308,700.00
Less: Interest income 19,918,179.96 6,976,161.44
Acceptant discount 11,494,770.87 5,472,503.74
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 current
Source Occurred in previous period
period
Government subsidies related to deferred income
283,322.58 206,250.66
(related to assets)
Government subsidies related to deferred income
95,060.00
(related to income)
Government subsidies directly included in current
5,945,520.73 5,791,459.18
profits and losses (related to income)
Other items related to daily activities and included
540,064.44 514,288.22
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
145
Interim Report 2022 of China Fangda Group Co., Ltd.
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 of fair
Amount occurred in the current period Occurred in previous period
value
Transactional financial assets 133,168.82
Investment real estate measured at fair
1,068,328.60
value
Other non-current financial assets -20,657.41 172,829.74
Total 1,180,840.01 172,829.74
53. Credit impairment loss
In RMB
Item Amount occurred in the current period Occurred in previous period
Bad debt loss of other receivables -1,581,252.49 1,139,984.05
Bad debt loss of accounts receivable and
26,597,550.83 18,713,432.01
notes receivable
Total 25,016,298.34 19,853,416.06
54. Assets impairment loss
In RMB
Item Amount occurred in the current period Occurred in previous 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 current
Source Occurred in previous period
period
Gain and loss from disposal of fixed assets ("-" -815,581.50 -2,027,304.03
146
Interim Report 2022 of China Fangda Group Co., Ltd.
for loss)
56. Non-business income
In RMB
Amount occurred in the Amount accounted into the
Item Occurred in previous period
current period current accidental gain/loss
Penalty income 122,506.66 195,216.06 122,506.66
Payable account not able to
115,354.80 539,817.35 115,354.80
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 into
Amount occurred in the
Item Occurred in previous period the current accidental
current period
gain/loss
Donation 2,338,000.00 3,127,302.00 2,338,000.00
Loss from retirement os
159,921.17 101,810.29 159,921.17
damaged non-current 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
Item Amount occurred in the current period Occurred in previous period
Income tax expenses in this period 24,417,052.77 9,913,372.73
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 applicable) tax rates 31,842,495.63
Impacts of different tax rates applicable for some subsidiaries -9,525,227.89
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
147
Interim Report 2022 of China Fangda Group Co., Ltd.
Impacts of using deductible loss of unrecognized deferred income tax assets -582,391.98
Deductible temporary difference and deductible loss of unrecognized
119,682.98
deferred income tax assets
Profit and loss of associates and joint ventures calculated using the equity
8,243.54
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.
60. Notes to the cash flow statement
(1) Other cash inflow related to operation
In RMB
Item Amount occurred in the current period Occurred in previous period
Interest income 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
Item Amount occurred in the current period Occurred in previous 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
Item Amount occurred in the current period Occurred in previous 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
Item Amount occurred in the current period Occurred in previous period
Discounted loan deposits such as bills of
604,311,403.85 228,210,000.00
exchange and due repayment
148
Interim Report 2022 of China Fangda Group Co., Ltd.
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
61. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB
Amount of the Current Amount of the
Supplementary information
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, production
15,224,319.96 12,694,795.70
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, and other long-
815,581.50 2,027,304.03
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 increase) -8,571,096.06 -108,813.53
Increase of deferred income tax asset (“-“ for increase) -3,012,044.14 1,701,067.08
Decrease of inventory (“-“ for increase) 14,668,390.43 63,137,528.73
Decrease of operational receivable items (“-“ for increase) -293,658,104.04 25,896,769.11
Increase of operational receivable items (“-“ for decrease) -177,019,400.45 -851,232,377.90
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
149
Interim Report 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 time 581,005,538.43 875,884,674.10
Other monetary capital can be used at
12,911,683.44 16,363,204.73
any time
III. Balance of cash and cash equivalents at
593,918,013.39 892,251,071.59
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
Notes receivable 34,787,478.67 Bills endorsed or discounted but not 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 Development
Equity pledge
200,000,000.00 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 currency 203,260,060.00 0.000288 58,623.11
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
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
150
Interim Report 2022 of China Fangda Group Co., Ltd.
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 currency 54,494,719.00 0.000288 15,717.06
(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 an increase
purchase forward
futures contract in expected transaction procurement costs;
transaction
Cash flow hedging
Forward foreign
Forward foreign The depreciation of foreign currency leads to the decrease
exchange
exchange transaction of actual collection
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 Development Deferred
1,480,952.90 28,571.40
Division of Dongguan Finance Bureau earning
Distributed PV power generation project subsidy sponsored by Deferred
331,250.27 12,499.98
Dongguan Reform and Development Commission earning
Special subsidy for industrial transformation, upgrading and Deferred
726,666.63 40,000.02
development earning
National Industry Revitalization and Technology Renovation Project Deferred
5,224,119.20 153,864.30
fund earning
Enterprise informationization subsidy project of Shenzhen Small and 348,000.00 Deferred 24,000.00
151
Interim Report 2022 of China Fangda Group Co., Ltd.
Medium Enterprise Service Agency earning
Energy saving and environmental protection metal curtain wall Deferred
973,856.20 13,071.90
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 Innovation Other
1,000,000.00 1,000,000.00
Commission for the cultivation of high-tech enterprises gains
Subsidy for Multiplier Support Scheme for National High-tech
Other
Enterprises of Nanshan District Science and Technology Innovation 100,000.00 100,000.00
gains
Bureau of Shenzhen
Other
Hong Kong SAR epidemic subsidy 142,597.63 142,597.63
gains
Other
Shanghai Songjiang District Enterprise Technology Center subsidy 200,000.00 200,000.00
gains
Other
Others 637,314.55 gains/defer 450,271.71
red 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 Registered percentage Obtaining
Company Business
business address method
Direct Indirect
Designing, manufacturing, and Incorpora
Fangda Jianke Shenzhen Shenzhen 98.39% 1.61%
installation of curtain walls tion
Production, processing and
Fangda Zhiyuan Incorpora
Shenzhen Shenzhen installation of subway screen 83.10%
Technology tion
doors
Prodution and sales of new-type
Fangda Jiangxi New Incorpora
Nanchang Nanchang materialsm composite materials 75.00% 25.00%
Material tion
and production of curtain walls
Real estate development and Incorpora
Fangda Property Shenzhen Shenzhen 99.00% 1.00%
operation tion
Design and construction of PV Incorpora
Fangda New Energy Shenzhen Shenzhen 99.00% 1.00%
power plants tion
Fangda Chengdu Chengdu Chengdu Trusted processing of building 100.00% Incorpora
152
Interim Report 2022 of China Fangda Group Co., Ltd.
Technology curtain wall materials tion
Virgin Virgin Incorpora
Shihui International Investment 100.00%
Islands Islands tion
Fangda Dongguan New Installation and sales of Incorpora
Dongguan Dongguan 100.00%
Material building curtain walls tion
Fangda Property Incorpora
Shenzhen Shenzhen Property management 100.00%
Management tion
Fangda Jiangxi Property Real estate development and Incorpora
Nanchang Nanchang 100.00%
Development operation tion
Fangda Luxin New Design and construction of PV Incorpora
Pingxiang Pingxiang 100.00%
Energy power plants tion
Fangda Xinjian New Design and construction of PV Incorpora
Nanchang Nanchang 100.00%
Energy power plants tion
Fangda Dongguan New Design and construction of PV Incorpora
Dongguan Dongguan 100.00%
Energy power plants tion
Incorpora
Kechuangyuan Software Shenzhen Shenzhen Software development 83.10%
tion
Fangda Zhichuang Incorpora
Hong Kong Hong Kong Metro screen door 83.10%
Technology Hong Kong tion
Fangda Hongjun Incorpora
Shenzhen Shenzhen Investment 98.00% 2.00%
Investment tion
Designing, manufacturing, and Incorpora
Fangda Australia Australia Australia 100.00%
installation of curtain walls tion
Design, development and sales
Incorpora
Fangda Yunzhi Shenzhen Shenzhen of cloud rail transport 100.00%
tion
equipment
Chengda Curtain Wall Building decoration and other Incorpora
Chengdu Chengdu 100.00%
Company construction industry tion
Designing, manufacturing, and Incorpora
Fangda Southeast Asia Vietnam Vietnam 100.00%
installation of curtain walls tion
Intelligent technology, new Incorpora
Fangda Shanghai Zhijian Shanghai Shanghai 30.00% 70.00%
energy, automated technology tion
Construction technology,
intelligent technology,
Incorpora
Fangda Shanghai Jianzhi Shanghai Shanghai automation technology, design, 100.00%
tion
production and installation of
building curtain walls
Zhongrong Litai Shenzhen Shenzhen Business service 55.00% Purchase
Project investment and Incorpora
Fangda Investment Shenzhen Shenzhen 99.00% 0.52%
investment consultancy tion
Project investment and Incorpora
Fangda Lifu Investment Shenzhen Shenzhen 52.00%
investment consultancy tion
Fangda Xunfu Project investment and Incorpora
Shenzhen Shenzhen 100.00%
Investment investment consultancy tion
Fangda Jianke Hong Design, sale and installation of Incorpora
Hong Kong Hong Kong 100.00%
Kong building curtain wall tion
Consolid
Inspection, technical service ation of
and consultation of building entities
Fangda Yunzhu Shenzhen Shenzhen 100.00%
safety and building energy under
saving system common
control
Consolid
Inspection, technical service
ation of
and consultation of building
Fangda Yunzhu Testing Shenzhen Shenzhen 100.00% entities
safety and building energy
under
saving system
common
153
Interim Report 2022 of China Fangda Group Co., Ltd.
control
Production, processing and
General Metro Incorpora
Singapore Singapore installation of subway screen 83.10%
Technology Co., Ltd tion
doors
Production, processing and
Fangda Zhiyuan Incorpora
Wuhan Wuhan installation of subway screen 83.10%
Technology Wuhan tion
doors
Production, processing and
Fangda Zhiyuan Incorpora
Nanchang Nanchang installation of subway screen 83.10%
Technology Nanchang tion
doors
Production, processing and
Fangda Zhichuang Incorpora
Dongguan Dongguan installation of subway screen 83.10%
Technology Dongguan tion
doors
(2) Major non wholly-owned subsidiaries
In RMB
Profit and loss Dividend to be Interest balance of
Shareholding of
Company attributed to minority distributed to minority minority shareholders
minority shareholders
shareholders shareholders in the 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
Closing balance Opening balance
Compa Curren Non- Curren Non-
Non- Total Total Non- Total Total
ny Curren t current Curren t current
current of liabiliti current of liabiliti
t asset liabiliti liabiliti t asset liabiliti liabiliti
assets assets es assets assets es
es es es es
Zhong 208,04 208,45 100,62 100,93 207,59 208,04 100,10 100,47
409,57 305,24 455,31 363,92
rong 4,289. 3,862. 5,480. 0,722. 2,402. 7,717. 6,531. 0,461.
3.80 2.20 5.59 9.52
Litai 05 85 76 96 32 91 59 11
Fangd
a
759,55 72,475 832,02 482,68 20,074 502,76 725,00 84,470 809,47 485,32 23,847 509,17
Zhiyua
1,314. ,038.8 6,353. 8,726. ,242.5 2,968. 6,361. ,444.4 6,805. 9,720. ,519.2 7,240.
n
56 5 41 25 1 76 40 2 82 83 2 05
Techn
ology
In RMB
Amount occurred in the current period Occurred in previous period
Company Total of Business Total of Business
Turnover Net profit misc. operation Turnover Net profit misc. operation
incomes cash flows incomes cash flows
154
Interim Report 2022 of China Fangda Group Co., Ltd.
Zhongrong
82,951.18 -54,116.91 -54,116.91 -8,017.93 201,032.08 11,157.19 11,157.19 16,306.16
Litai
Fangda - -
300,269,75 28,566,000. 28,963,818. 267,687,03 48,286,952. 47,707,035.
Zhiyuan 105,649,96 122,774,77
1.24 91 88 8.55 27 22
Technology 2.94 9.41
2. Interests in joint ventures or associates
(1) Financial summary of insignificant joint ventures and associates
In RMB
Closing balance/amount occurred in this Opening balance/amount occurred in
period previous period
Associate:
Total book value of investment 55,185,971.99 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 Company's credit management department reviews the Company's credit sales on a case-by-case basis). The internal
audit department of the Company conducts daily supervision of the implementation of the Company's risk management policies
and procedures, and reports relevant findings to the Company's audit committee in a timely manner.
The overall goal of the Company's risk management is to formulate risk management policies that minimize the risks
associated with various financial instruments without excessively affecting the Company's competitiveness and resilience.
1. Credit risk
Credit risk is caused by the failure of one party of a financial instrument in performing its obligations, causing the risk of
financial loss for the other party. The credit risk of the Company mainly comes from monetary capital, notes receivable, accounts
receivable, other receivables, receivables financing, contract assets, etc. The credit risk of these financial assets comes from the
default of the counterparties, and the maximum risk exposure is equal to the book amount of these instruments.
The Company's money and funds are mainly deposited in the commercial banks and other financial institutions. The
Company believes that these commercial banks have higher reputation and asset status and have lower credit risk.
For notes receivable, accounts receivable, other receivables, receivables financing and contract assets, the Company sets
relevant policies to control credit risk exposure. The Group set the credit line and term for debtors according to their financial
status, external rating, and possibility of getting third-party guarantee, credit record and other factors. The Group regularly
monitors debtors' credit record. For those with poor credit record, the Group will send written payment reminders, shorten or
cancel credit term to lower the general credit risk.
(1) Significant increases in credit risk
155
Interim Report 2022 of China Fangda Group Co., Ltd.
The credit risk of the financial instrument has not increased significantly since the initial confirmation. In determining
whether the credit risk has increased significantly since the initial recognition, the Company considers reasonable and evidenced
information, including forward-looking information, that can be obtained without unnecessary additional costs or effort. The
Company determines the relative risk of default risk of the financial instrument by comparing the risk of default of the financial
instrument on the balance sheet date with the risk of default on the initial recognition date to assess the credit risk of the financial
instrument from initial recognition.
When one or more of the following quantitative and qualitative criteria are triggered, the Company believes that the credit
risk of financial instruments has increased significantly: the quantitative criteria are mainly the probability of default in the
remaining life of the reporting date increased by more than a certain proportion compared with the initial recognition; the
qualitative criteria are the major adverse changes in the operation or financial situation of the major debtors, the early warning of
customer list, etc.
(2) Definition of assets where credit impairment has occurred
In order to determine whether or not credit impairment occurs, the standard adopted by our company is consistent with the
credit risk management target for related financial instruments, and quantitative and qualitative indicators are considered.
Major financial difficulties have occurred to the issuer or the debtor; Breach of contract by the debtor, such as payment of
interest or default or overdue of principal; (B) The concession that the debtor would not make under any other circumstances for
economic or contractual considerations relating to the financial difficulties of the debtor; The debtor is likely to be bankrupt or
undertake other financial restructuring; The financial difficulties of the issuer or debtor lead to the disappearance of the active
market for the financial asset; To purchase or generate a financial asset at a substantial discount, which reflects the fact that a
credit loss has occurred.
Credit impairment in financial assets may be caused by a combination of multiple events, not necessarily by events that
can be identified separately.
(3) Expected credit loss measurement
Depending on whether there is a significant increase in credit risk and whether a credit impairment has occurred, the
Company prepares different assets for a 12-month or full expected credit loss. The key parameters of expected credit loss
measurement include default probability, default loss rate and default risk exposure. Taking into account the quantitative analysis
and forward-looking information of historical statistics (such as counterparty ratings, guaranty methods, collateral categories,
repayment methods, etc.), the Company establishes the default probability, default loss rate and default risk exposure model.
Definition:
The probability of default refers to the possibility that the debtor will not be able to fulfil its obligation to pay in the next 12
months or throughout the remaining period.
Breach Loss Rate means the extent of loss expected by the Company for breach risk exposure. Depending on the type of
counterparty, the manner and priority of recourse, and the different collateral, the default loss rate is also different. The default loss
rate is the percentage of the risk exposure loss at the time of the default, calculated on the basis of the next 12 months or the entire
lifetime.
Exposure to default is the amount payable to the Company at the time of default in the next 12 months or throughout the
remaining life. Prospective information credit risks significantly increased and expected credit losses were calculated. Through the
analysis of historical data, the Company has identified the key economic indexes that affect the credit risk of each business type
and the expected credit loss.
156
Interim Report 2022 of China Fangda Group Co., Ltd.
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.
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 years Over 3 years Total
Short-term loans 128,747.44 128,747.44
Derivative financial liabilities 1.19 1.19
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 due in 1 7,841.86 7,841.86
year
Other current liabilities 4,809.84 4,809.84
Long-term loans - 24,650.00 108,700.00 133,350.00
Lease liabilities - 1,886.82 28.39 1,915.21
157
Interim Report 2022 of China Fangda Group Co., Ltd.
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 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
Chapter X, 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
RMB6,256,900 (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 Second level fair
First level fair value Third level fair value Total
value
1. Continuous fair value
-- -- -- --
measurement
(I) Transactional financial
1,768,884.99 32,133,168.82 33,902,053.81
assets
1. Financial assets measured
1,768,884.99 32,133,168.82 33,902,053.81
at fair value with variations
158
Interim Report 2022 of China Fangda Group Co., Ltd.
accounted into current
income account
(1) Derivative financial assets 1,768,884.99 1,768,884.99
(2) Investment of financial
32,133,168.82 32,133,168.82
products
(2) Receivable financing 19,031,714.87 19,031,714.87
(3) Investment in other equity
14,180,652.65 14,180,652.65
tools
(4) Investment real estate 5,753,349,305.19 5,753,349,305.19
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 fair
1,768,884.99 5,753,349,305.19 72,850,287.17 5,827,968,477.35
value continuously
(6) Transactional financial
1,840,691.89 1,840,691.89
liabilities
1. Derivative financial
1,840,691.89 1,840,691.89
liabilities
Total assets measured at fair
1,840,691.89 1,840,691.89
value continuously
2. Discontinuous fair value
-- -- -- --
measurement
2. Recognition basis of market value of continuous and discontinuous items measured at first level fair
value
The Group determines the fair value using quotation in an active market for financial instruments traded in an active market;
3. Valuation technique and qualitative and quantitative information for key parameters of continuous
and discontinuous second level fair value items
For investment real estate, the Company adopts valuation technology to determine its fair value. The valuation techniques adopted
are mainly the market comparison method and the income method, and the rent and resale model. The input value of valuation
technology mainly includes comparable market unit price, market rent, vacancy rate, growth rate, rate of return, etc.
4. Valuation technique and qualitative and quantitative information for key parameters of continuous
and discontinuous third level fair value items
If there is no active market, the Company uses evaluation techniques to determine the fair value. The valuation models are mainly
cash flow discount model and market comparable company model. The input value of valuation technology mainly includes risk-
free interest rate, benchmark interest rate, exchange rate, credit point difference, liquidity premium, lack of liquidity discount, etc.
5. 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 financial assets measured at fair value between the first and
second level or transfer in or out of the third level.
159
Interim Report 2022 of China Fangda Group Co., Ltd.
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 parent Voting power of
Parent Registered address Business Registered capital co. in the the parent
Company company
Shenzhen Banglin
Technologies Industrial
Shenzhen RMB30 million 11.11% 11.11%
Development Co., investment
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
4. Other associates
Other related parties Relationship with the Company
Jiangxi Business Innovative Property Joint Stock Co., Ltd. Affiliates of the Company
Gong Qing Cheng Shi Li He Investment Management Affiliated relationship with Shenzhen Banglin Technology
Partnership Enterprise (limited partner) Development Co., Ltd.
Shenyang Fangda Subsidiary in liquidation
Shenzhen Yikang Real Estate Co. Ltd. Controlled subsidiaries
Shenzhen Qijian Technology Co., Ltd. (Qijian Technology) Common actual controller
Shenzhen Mingjiu Investment Co., Ltd Common actual controller
160
Interim Report 2022 of China Fangda Group Co., Ltd.
Shenzhen Yingxiang Investment Co., Ltd Company with significant influence of actual 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
Affiliated party Related transaction Occurred in previous period
current period
Property service and sales of
Qijian Technology 112,319.60 59,376.04
goods
(2) Related leasing
The Company is the leasor:
In RMB
Rental recognized in the Rental recognized in the
Name of the leasee Category of asset for 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
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
161
Interim Report 2022 of China Fangda Group Co., Ltd.
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
Fangda Jianke and
to the following
Fangda Zhiyuan 140,000,000.00 December 18, 2019 No
description of related
Technology
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.
(4) Remuneration of key management
In RMB
Item Amount occurred in the current period Occurred in previous 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
Project name Affiliated party Closing balance Opening balance
162
Interim Report 2022 of China Fangda Group Co., Ltd.
Remaining book Remaining book
Bad debt provision Bad debt provision
value value
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
Other Shenzhen Yikang
70,062,675.83 1,401,253.52 70,062,675.83 1,043,933.87
receivables Real Estate Co. Ltd.
(2) Receivable interest
In RMB
Opening balance of book
Project name Affiliated party Closing balance of book value
value
Shenzhen Yikang Real Estate
Other payables 25,251,147.71 25,116,052.92
Co. Ltd.
Other payables Qijian Technology 400.00 400.00
Other payables Ganshang Joint Investment 3,355.36 3,355.36
XIII. Contingent events
1. Major commitments
Major commitments that exist on the balance sheet day
On November 6, 2017, Fangda Real Estate Co., Ltd., a subsidiary of the Company, and Bangshen Electronics (Shenzhen)
Co., Ltd. signed the “Joint Development Agreement on Fangda Bangshen Industrial Park (Temporary Name) Urban Renewal
Project”, and the two parties agreed to develop cooperatively. In order to develop urban renewing projects such as a “renovation
project”, Fangda Real Estate provided Party A with property compensation through renovating and renovating the property
allocation terms agreed upon by both parties, and obtained independent development rights of the project. As of June 30, 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, RMB61,937,200 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.
163
Interim Report 2022 of China Fangda Group Co., Ltd.
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 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
164
Interim Report 2022 of China Fangda Group Co., Ltd.
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 Jianke 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 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 application.
(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 Technology Guarantee 5,000.00 2021/08/12-2022/08/07
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 influences
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:
165
Interim Report 2022 of China Fangda Group Co., Ltd.
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
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
166
Interim Report 2022 of China Fangda Group Co., Ltd.
Offset
Item Curtain wall Rail transport Real estate New energy Others between Total
segments
1,152,781,76 300,269,751. 148,989,153. 14,705,232.5 12,183,607.5 1,613,063,31
Turnover 8,501,022.57
2.78 24 73 0 2 5.30
Including:
external 1,150,768,37 300,269,751. 144,893,896. 1,613,063,31
8,159,691.65 8,971,603.92
transaction 2.43 24 06 5.30
income
Inter-
segment 12,183,607.5
2,013,390.34 4,095,257.66 341,330.92 5,733,628.59 0.00
transaction 2
income
Including:
major 1,134,030,35 300,180,875. 83,384,432.5 1,523,656,28
8,501,022.57 0.00 2,440,404.34
business 7.71 13 4 3.61
turnover
Operating 970,969,416. 237,515,394. 50,269,160.8 1,259,515,84
3,793,584.03 418,824.01 3,450,537.15
cost 01 89 1 2.60
Including:
962,083,811. 237,493,707. 38,732,091.9 1,238,697,97
major 3,793,584.03 0.00 3,405,218.57
64 69 8 6.76
business cost
Operation 116,197,848. 30,778,786.1 51,885,075.4 17,727,940.9 - 224,045,875.
1,536,836.84
cost 20 0 2 3 5,919,388.18 67
Operating 65,614,498.5 31,975,570.2 46,834,917.4 - 14,652,458.5 129,501,597.
3,170,601.70
profit/(loss) 7 5 9 3,441,532.44 5 03
5,241,241,27 832,026,353. 6,426,315,24 922,267,287. 3,732,426,88 4,742,771,26 12,411,505,7
Total assets
5.43 41 6.85 00 5.84 6.13 82.40
Total 3,609,633,89 502,762,968. 3,735,917,54 812,657,687. 1,388,459,85 3,289,375,40 6,760,056,54
liabilities 0.15 76 9.65 52 4.39 0.53 9.94
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 Remaining book
Bad debt provision Bad debt provision
Type value Book value Book
Proporti Provisio value Proporti Provisio value
Amount Amount Amount Amount
on n rate on n rate
167
Interim Report 2022 of China Fangda Group Co., Ltd.
Includin
g:
Account
receivab
le for
which
811,162. 20,387.3 790,774. 595,366. 585,936.
bad debt 100.00% 2.51% 100.00% 9,430.38 1.58%
00 5 65 68 30
provisio
n is
made by
group
Includin
g:
Portfolio
811,162. 20,387.3 790,774. 595,366. 585,936.
3. 100.00% 2.51% 100.00% 9,430.38 1.58%
00 5 65 68 30
Others
811,162. 20,387.3 790,774. 595,366. 585,936.
Total 100.00% 2.51% 100.00% 9,430.38 1.58%
00 5 65 68 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 Chapter X, 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 disclose 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
Opening Change in the period
Type Closing balance
balance Provision Written-back or Canceled Others
168
Interim Report 2022 of China Fangda Group Co., Ltd.
recovered
Portfolio 3.
9,430.38 10,956.97 20,387.35
Others
Total 9,430.38 10,956.97 20,387.35
(3) Balance of top 5 accounts receivable at the end of the period
In RMB
Closing balance of accounts Balance of bad debt provision
Entity Percentage (%)
receivable at the end of 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 within
1,821,408,667.12 1,276,507,096.22
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 loss for
Bad debt provision Expected credit loss for Total
Expected credit losses the entire duration
the entire duration (no
in the next 12 months (credit impairment has
credit impairment)
occurred)
Balance on January 1,
3,396.70 13,035,168.48 13,038,565.18
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
169
Interim Report 2022 of China Fangda Group Co., Ltd.
Changes in book balances with significant changes in the current period
□ Applicable Inapplicable
Account age
In RMB
Age Closing balance
Within 1 year (inclusive) 1,821,631,454.53
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
Type Opening balance Written-back or Closing balance
Provision Canceled Others
recovered
Other
receivables and
13,038,565.18 1,059.05 13,039,624.23
bad debt
provision
Total 13,038,565.18 1,059.05 13,039,624.23
4) Balance of top 5 other receivables at the end of the period
In RMB
Balance of bad
debt provision at
Entity By nature Closing balance Age Percentage (%)
the end of the
period
Affiliated
Fangda Property 930,462,523.45 Less than 1 year 51.08% 0.00
party payment
Fangda Dongguan Affiliated
358,077,558.80 Less than 1 year 19.66% 0.00
New Material party payment
Fangda Jiangxi Affiliated
208,139,038.54 Less than 1 year 11.42% 0.00
Property Development party payment
Affiliated
Fangda Jianke 205,841,633.15 Less than 1 year 11.30% 0.00
party payment
Fangda Hongjun Affiliated
88,385,280.00 Less than 1 year 4.85% 0.00
Investment party payment
Total 1,790,906,033.94 98.31% 0.00
3. Long-term share equity investment
In RMB
170
Interim Report 2022 of China Fangda Group Co., Ltd.
Closing balance Opening balance
Impair Impair
Item Remaining book ment Remaining book ment
Book value Book value
value provisi value provis
on ion
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 (+,-) Balanc
e of
impair
Increa Decreas ment
Invested entity Opening book value Impairme Closing book value provisi
sed ed
nt Others on at
invest investm
provision the end
ment ent
of the
period
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 International 61,653.00 61,653.00
Fangda New
99,000,000.00 99,000,000.00
Energy
Fangda Hongjun
98,000,000.00 98,000,000.00
Investment
Fangda Investment 235,323,000.00 235,323,000.00
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:
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:
171
Interim Report 2022 of China Fangda Group Co., Ltd.
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
Item Amount occurred in the current period Occurred in previous period
Gains from long-term equity investment
33,660,000.00
measured by costs
Investment gain of financial products 431,992.15 316,138.71
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 common business, comply with the 4,734,557.71
national policy and continues to enjoy at certain fixed rate or amount.
Capital using expense charged to non-financial enterprises and accounted
3,454,345.45
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
3,145,876.39
assets and liabilities 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 measured at
1,068,328.60
fair value in follow-up measurement
Other non-business income and expenditures other than the above -2,131,614.49
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
172
Interim Report 2022 of China Fangda Group Co., Ltd.
2. Net income on asset ratio and earning per share
Earning per share
Weighted average net
Profit of the report period Basic earnings per share Diluted Earnings per share
income/asset ratio
(yuan/share) (yuan/share)
Net profit attributable to
common shareholders of the 2.03% 0.10 0.10
Company
Net profit attributable to the
common owners of the PLC
1.89% 0.10 0.10
after deducting of non-
recurring gains/losses
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profits and assets in financial statements disclosed according to the international
and Chinese account standards
□ Applicable Inapplicable
(2) Differences in net profits and assets in financial statements disclosed according to the international
and Chinese account standards
□ Applicable Inapplicable
(3) Differences in financial data using domestic and foreign accounting standards, the overseas institution
name should be specified if the difference in data audited by an overseas auditor is adjusted
None
173
