方大集团股份有限公司 2018 年年度报告全文
China Fangda Group Co., Ltd.
2018 Annual Report
January 2019
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方大集团股份有限公司 2018 年年度报告全文
Chapter I 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. XiongJianming, 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 needs to comply with disclosure requirements of the
Shenzhen Stock Exchange Industry Information Disclosure Guideline No.6 –
Listed Companies Engaged in Decoration Business and disclosure requirements
of the Shenzhen Stock Exchange Industry Information Disclosure Guideline
No.3 – Listed Companies Engaged in Property Development.
The Company has specified market, management and production and
operation risks in this report. Please review the potential risks and measures
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方大集团股份有限公司 2018 年年度报告全文
mentioned in the discussion and analysis of future development in IV. Operation
Discussion and Analysis.
The Board meeting reviewed and approved the profit distribution preplan:
distributing cash dividend of RMB2.00 (tax included) for each ten shares to all
shareholders on the basis of 1,123,384,189 shares of the Company and no
dividend share is issued to shareholders. No reserve is capitalized.
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方大集团股份有限公司 2018 年年度报告全文
Table of Contents
Chapter I Important Statement, Table of Contents and Definitions .........................................................................................................2
Chapter II About the Company and Financial Highlights ........................................................................................................................7
Chapter III Business Introduction ..........................................................................................................................................................12
Chapter IV Operation Discussion and Analysis .....................................................................................................................................18
Chapter V Significant Events ................................................................................................................................................................40
Chapter VI Changes in Share Capital and Shareholders ........................................................................................................................53
Chapter VII Preferred Shares .................................................................................................................................................................60
Chapter VIII Particulars about the Directors, Supervisors, Senior Management and Employees ..........................................................61
Chapter IX Corporation Governance .....................................................................................................................................................68
Chapter X. Information about the Company’s Securities ......................................................................................................................75
Chapter XI Financial Statements ...........................................................................................................................................................76
Chapter XII Documents for Reference ................................................................................................................................................200
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方大集团股份有限公司 2018 年年度报告全文
Definitions
Refers
Terms Description
to
Refers
Fangda Group, company, the Company China Fangda Group Co., Ltd.
to
Refers
Articles of Association Articles of Association of China Fangda Group Co., Ltd.
to
Refers
Meeting of shareholders Meetings of shareholders of China Fangda Group Co., Ltd.
to
Refers
Board of Directors Board of Directors of China Fangda Group Co., Ltd.
to
Refers
Supervisory Committee Supervisory Committee of China Fangda Group Co., Ltd.
to
Refers
Banglin Co. Shenzhen Banglin Technologies Development Co., Ltd.
to
Refers Gong Qing Cheng Shi Li He Investment Management Partnership
Shilihe Co.
to Enterprise (limited partner)
Refers
Shengjiu Co. Shengjiu Investment Ltd.
to
Refers
FangdaJianke Shenzhen FangdaJianke Group Co., Ltd.
to
Refers
FangdaZhichuang FangdaZhichuang Science and Technology Co., Ltd.
to
Refers
Fangda New Material Fangda New Materials (Jiangxi) Co., Ltd.
to
Refers
Fangda New Resource Shenzhen Fangda New Energy Co., Ltd.
to
Refers
Fangda Property Shenzhen Fangda Property Development Co., Ltd.
to
Refers
Chengdu FangdaJianke ChengdaFangda Construction Technology Co., Ltd.
to
Refers
Dongguan Fangda New Material Dongguan Fangda New Material Co., Ltd.
to
Kechuangyuan Software Refers Shenzhen QianhaiKechuangyuan Software Co., Ltd.
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方大集团股份有限公司 2018 年年度报告全文
to
Refers
Kexunda Co. Shenzhen Kexunda Software Co., Ltd.
to
Refers
Fangda Property Shenzhen Fangda Property Management Co., Ltd.
to
Refers
Jiangxi Property Fangda (Jiangxi) Property Development Co., Ltd.
to
Refers
Hongjun Investment Company Shenzhen Hongjun Investment Co., Ltd.
to
Refers
FangdaQingling Shanghai FangdaQingling Technology Co., Ltd.
to
Refers
Fangda Cloud Rail Shenzhen Fangda Cloud Rail Technology Co., Ltd.
to
Refers
Jianke Australia Fangda Australia Pty Ltd
to
Refers
Automatic Hong Kong Fangda Automation (Hong Kong) Co., Ltd.
to
Refers
Shihui International Shihui International Holding Co., Ltd.
to
Refers
Shenyang Decoration Fangda Decoration Engineering (Shenyang) Co., Ltd.
to
Refers
Shenyang Fangda Shenyang Fangda Semi-conductor Lighting Co., Ltd.
to
Refers
Shenzhen Woke Shenzhen Woke Semi-conductor Lighting Co., Ltd.
to
Refers
SZSE Shenzhen Stock Exchange
to
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方大集团股份有限公司 2018 年年度报告全文
Chapter IIAbout the Company and Financial Highlights
1. Company profiles
Stock ID Fangda Group, Fangda B Stock code 000055、200055
Modified stock ID (if any) None
Stock Exchange Shenzhen Stock Exchange
Chinese name China Fangda Group Co., Ltd.
Chinese abbreviation Fangda Group
English name (if any) CHINA FANGDA GROUP CO., LTD.
English abbreviation (if any) CFGC
Fangda Technology Building, Kejinan 12th Avenue, High-tech Zone, Hi-tech Park South Zone,
Registered address
Shenzhen, PR China.
Zip code 518057
20F, Fangda Technology Building, Kejinan 12th Avenue, High-tech Zone, Hi-tech Park South Zone,
Office address
Shenzhen, PR China.
Zip code 518057
Website http://www.fangda.com
Email fd@fangda.com
2. Contacts and liaisons
Secretary of the Board Representative of Stock Affairs
Name Zhou Zhigang GuoLinchen
20F, Fangda Technology Building, Kejinan 20F, Fangda Technology Building, Kejinan
Address 12th Avenue, High-tech Zone, Hi-tech Park 12th Avenue, High-tech Zone, Hi-tech Park
South Zone, Shenzhen, PR China. South Zone, Shenzhen, PR China.
Tel. 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. Information disclosure and inquiring
China Securities Journal, Security Times, Shanghai Securities Daily, Hong
Press medias of information disclosure
Kong Commercial Daily
Website assigned by CSRC to release the online http://www.cninfo.com.cn
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方大集团股份有限公司 2018 年年度报告全文
reports
Place for information inquiry Secretarial Office of the Board
4. Registration changes
Organization code None
Changes in main businesses since the
None
listing of the Company
Changes in the controlling shareholders (if
None
any)
5. Other information
Public accountants employed by the Company
Public accountants Grant Thornton (limited liability partnership)
Address 5th Floor, Scitech Place, 22 Jianguomen Wai Avenue, Chaoyang District, Beijing, China
Signing accountant names Chen Zhaoxin, Zeng Hui
Sponsor engaged by the Company to perform continued supervision and guide during the reporting period
□ Applicable √ Inapplicable
Financial advisor engaged by the Company to perform continued supervision and guide during the reporting period
□ Applicable √ Inapplicable
6. Financial Highlight
Whether the Company needs to make retroactive adjustment or restatement of financial data of previous years
□ Yes √ No
2018 2017 Increase/decrease 2016
Turnover (yuan) 3,048,680,152.06 2,947,470,813.58 3.43% 4,203,866,173.72
Net profit attributable to
shareholders of the listed company 2,246,164,571.68 1,144,404,441.03 96.27% 697,956,378.23
(yuan)
Net profit attributable to the
shareholders of the listed company
21,171,063.10 366,212,412.32 -94.22% 623,075,474.92
and after deducting of
non-recurring gain/loss (RMB)
Net cash flow generated by 387,102,719.57 -30.61%
557,833,145.73 465,717,074.92
business operation (RMB)
Basic earnings per share
1.91 0.97 96.91% 0.6
(yuan/share)
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方大集团股份有限公司 2018 年年度报告全文
Diluted Earnings per share
1.91 0.97 96.91% 0.6
(yuan/share)
Weighted average net income/asset
53.17% 41.53% 11.64% 38.83%
ratio
Increase/decrease from
End of 2018 End of 2017 End of 2016
the end of last year
Total asset (RMB) 10,658,854,133.73 7,625,422,688.63 39.78% 6,787,051,278.08
Net profit attributable to the
shareholders of the listed company 5,195,187,621.88 3,238,939,202.18 60.40% 2,364,262,560.28
(RMB)
Note: The Company's main industrial curtain wall system and materials industry realized operating income of RMB2.011 billion
this year, an increase of 21.59% over the previous year; the gross profit margin for the year was 14.41%, an increase of 3.38%
over the previous year; and the net profit after deducting non-recurring gains and losses was RMB97,998,900, an increase of 1,123%
over the previous year.
7. 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. Financial highlights by quarters
In RMB
Q1 Q2 Q3 Q4
Turnover 650,032,997.33 792,017,899.20 793,250,321.93 813,378,933.60
Net profit attributable to the
98,377,550.44 131,754,112.75 91,338,344.89 1,924,694,563.60
shareholders of the listed company
Net profit attributable to the
shareholders of the listed company 88,737,051.63 120,968,066.71 85,861,046.88 -274,395,102.12
and after deducting of
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方大集团股份有限公司 2018 年年度报告全文
non-recurring gain/loss
Cash flow generated by business
-40,623,633.07 9,197,365.43 144,038,826.38 274,490,160.83
operations, net
Where there is difference between the above-mentioned financial data or sum and related financial data in quarter report and interim
report disclosed by the Company
□ Yes √ No
9. Accidental gain/loss item and amount
√ Applicable □ Inapplicable
In RMB
Item 2018 2017 2016 Notes
Non-current asset disposal gain/loss
(including the write-off part for which assets -5,080,792.02 89,483,320.53 -3,080,469.74
impairment provision is made)
Subsidies accounted into the current income
account (except the government subsidy
closely related to the enterprise’s business 5,931,937.15 5,637,910.24 7,571,963.67
and based on unified national standard
quota)
Capital using expense charged to
non-financial enterprises and accounted into 922,330.10
the current income account
Gain from entrusted investment or assets
27,065,331.33 20,455,865.70 1,401,717.08
management
Gain/loss from debt reorganization -3,674,141.05 -2,445,254.63
Gain/loss from change of fair value of
transactional financial asset and liabilities,
and investment gains from disposal of
transactional financial assets and liabilities -1,192,774.07 2,013,922.62 2,369,839.47
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 value 2,916,598,485.48 889,708,083.34 11,558,304.10
in follow-up measurement
Other non-business income and expenditures
1,675,521.71 4,054,553.86 5,857,845.48
other than the above
Other gain/loss items satisfying the
58,154,670.60
definition of non-recurring gain/loss account
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方大集团股份有限公司 2018 年年度报告全文
Less: Influenced amount of income tax 720,926,531.10 220,906,068.58 6,168,477.85
Influenced amount of minority
8,581,417.95 339,234.87
shareholders’ equity (after-tax)
Total 2,224,993,508.58 778,192,028.71 74,880,903.31 --
Explanation statement should be made for accidental gain/loss items defined and accidental
gain/loss items defined as regular gain/loss items according to the Explanation Announcement of
Information Disclosure No. 1 - Non-recurring gain/loss mentioned.
□ Applicable √ Inapplicable
No circumstance that should be defined as recurrent profit and loss according to Explanation Announcement of Information
Disclosure No. 1 - Non-recurring gain/loss occurs in the report period.
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方大集团股份有限公司 2018 年年度报告全文
Chapter III Business Introduction
1. Major businesses of the Company during the report period
Whether the Company needs to comply with disclosure requirements of special industries
Yes
Property development and decoration industries
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.6 – Listed Companies Engaged in Decoration Business.
The Company is headquartered in Nanshan District of Shenzhen and became listed in Shenzhen Stock Exchange on November
29, 1995. Currently, five major business subsidiaries of the Company are national high-tech enterprises with large modern production
bases in Shenzhen, Shanghai, Chengdu, Nanchang, Dongguan and Foshan. The Company was engaged in the following businesses in
the report period.
1. High-end curtain wall system and material business
(1) Main products and purposes
The Company’s main products include energy-saving curtain walls, photo-electricity curtain walls, LED color-display curtain
walls and aluminum plate materials. Construction curtain walls are mainly used on high-level buildings, large-area public venues
such as airports, stations, cultural centers and exhibition centers, daylighting roof, shaped construction (ball-shaped and clock-shaped
buildings) with external retaining and decoration functions.
(2) Main business modes, specific risks and changes;
The projects implemented by the Company are mainly through the bidding method to obtain contract orders. Project design,
material procurement, production and processing, and the construction and installation and after-sales service model are based on the
contract orders. The main risk of this mode is that it takes a long period of time from the completion of the order to the completion of
the project, and it is highly dependent on raw materials and labor costs. It is greatly affected by the national industrial policy, raw
material prices, and labor market fluctuations. Different contract orders have different requirements, imposing high requirements on
production management. The Company’s curtain wall products are engineered by itself. The operation mode remained unchanged in
the report period.
(3) Main business drive
See 3. Core competitiveness analysis in this chapter.
(4) Development stage of the industry, circle and industry position
The construction of office buildings and urban complexes in first- and second-tier cities in China has maintained a relatively
stable rhythm and volume. The use of building curtain walls in high-end residential and apartment buildings has increased. Building
curtain walls remain the most common design element for public buildings such as airports, stations, cultural stadiums, schools and
hospitals. The curtain wall industry is mature, the scale is stable and there is no obvious periodicity.
With the Belt and Road Initiative, Guangdong-Hong Kong-Macao Bay District and the construction of Xiong'an New District
as a major national strategy, it has provided a broader and better development opportunity for the energy-saving curtain wall and
materials business. The Company is a pioneer and first listed company in this industry. Over the past more than 20 years, the
Company has undertaken hundreds of large projects and received the highest award in the industry China Construction Luban Award
and Zhan Tianyou Civil Engineering Award for many times. The Company has also received nearly 100 provincial and above awards.
The Company has been in the top 10 of ―China's top 100 building curtain wall industry‖ for many years, and has already had strong
brand advantages and competitiveness in the industry. The Company has a strong technology lead in the industry with 437 patents,
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方大集团股份有限公司 2018 年年度报告全文
including 36 intention patents and two software copyrights. The Company also took part in the preparation of 22 national or industry
standards including the Public Construction Energy Saving Design Standard, making 9 records among Chinese enterprises. The
Company has a Class A qualification for building curtain wall engineering contracting and class A qualification for building curtain
wall engineering design. It is the highest level for curtain wall design and construction companies in China.
(5) Macroeconomic situation of the industry, the impact of changes in the industrial policy environment on the
Company, and the countermeasures taken by the Company
In 2018, the supply-side reform continued to deepen and industry development opportunities and challenges coexisted. With
the continuous strengthening of the national environmental protection policy and the fluctuation of the price of international energy
and metal materials, the price of most of the building materials is rising, which brings big challenge to the curtain wall industry.
However, the comprehensive promotion of the construction of the Guangdong, Hong Kong, and Macau Bay Area and the Xiong'an
New District has also brought many opportunities to the industry.
In 2018, the Company will continue to steadily and securely operate traditional high-quality markets such as Guangdong-Hong
Kong-Macao Bay District, Yangtze River Delta, Beijing-Tianjin-Hebei and Chengdu-Chongqing areas and promote overseas
markets step by step. The Company will establish a long-term development mechanism for the team, continue to enhance brand
image, focus on key customers and enrich quality, and establish strategic alliances with outstanding companies. The Company will
accelerate the construction of the Chengdu Xinjin production base and the Shanghai Songjiang production base and create conditions
for the Company to increase production, increase revenue and continue to develop rapidly.
(6) Quality control system, implementation standards, control measures and overall evaluation
Quality control system: The Company implements a comprehensive quality management system and has established a quality
management system in accordance with ISO9001 from the aspects of design, procurement, storage, production, testing, delivery,
installation, and after-sales service, and conduct regular reviews.
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.
Control measures: The Company has established complete and effective quality control measures and quality management
bodies, and strictly implements various quality management and control measures.
Overall evaluation: The Company's products and project quality are in full compliance with the relevant requirements of the
relevant national standards and standards, and maintain proper operation, providing customers with stable and reliable quality
products and engineering.
(7) Major project quality problem during the reporting period
None.
2. Rail transport equipment business
The Company’s main products in this sector are rail transport screen door systems, which are a necessary part of modern
subway system. It is installed at the edge of the subway platform and separates trains from the platform. The Company seeks to win
orders through tenders and purchase raw materials and arrange production based on orders. The Company has built a complete
industry chain that integrates designing, production, engineering and after-sales services. The operation mode remained unchanged in
the report period.The Company has developed rail transport screen door systems with independent intellectual property rights. The
Company also prepared the first Rail Transport Station Screen Door Standard. The Fangda metro screen door system which is at the
international advanced level has been applied in subways in 37 cities around the world. More than 10 million people use the large
subway screen door system every day. The Fangda screen door system has grasped a leading market share and established
incomparable brand influence thanks to its patents, standard and maintenance services. According to the China Urban Rail
Association, the market share of Fangda's screen door system ranks first in the world for nearly five years.
3. New energy industry: Solar PV power generation industry is largely supported by the Chinese government. The Company
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方大集团股份有限公司 2018 年年度报告全文
is one of the first companies that possess intellectual property rights in the designing, production and integration of solar PV systems.
In 2018, photovoltaic power stations in Xuanfeng Town, Pingxiang Town, Jiangxi Province, and photovoltaic power stations in the
parks of Jiangxi Isuzu Automobile Co., Ltd. in Nanchang City and Dongguan Songshan Lake Photovoltaic Power Plant all operated
steadily with a total power generation capacity of 20,737,000 kilowatt hours, meeting the designed power generation efficiency. The
sales income reached RMB 20,475,500 and operating profit of RMB 11,009,000. In the future, it will still bring long-term, stable
income and profits to the Company.
4. Real estate
The Company has basically completed one of the projects: Fangda Town ("Fangda Plaza", the same below) project in Nanshan
District, Shenzhen; one project under development Nanchang HonggutanFenghuangzhouFangda Center Project; there are two
projects in construction: FangdaBangshen Project in Baoan District, Shenzhen and Urban Renewal Project along the Dagang River in
Henggang, Shenzhen.
For a detailed discussion of the Company’s business, please refer to “III. Analysis of Core Competencies” in this section
of the report and Chapter VI “Operation Discussion and Analysis”.
II. Major assets change
1. Major assets change
Main assets Major change
Main assets Major change
Long-term equity investment increased by 105.34% year-on-year mainly due to the
Equity assets
payment of joint venture investment in the current period.
Fixed assets No significant change
Intangible assets increased by 36.43% year-on-year mainly due to the increase of land
Intangible assets
use rights of Shanghai Songjiang Base in the current period.
Construction in progress increased by 2083.85% year-on-year mainly due to the
Project in progress
company's self-use office in the renovation of real estate.
Investment real estate increased by 133.23% year-on-year mainly because the 1#
Investment real estate building of Fangda Plaza project was converted into investment real estate and
subsequent value added by fair value measurement
2. Major foreign assets
□ Applicable √ Inapplicable
3 Core Competitiveness Analysis
Whether the Company needs to comply with disclosure requirements of special industries
Yes
Property development and decoration industries
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方大集团股份有限公司 2018 年年度报告全文
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.6 – Listed Companies Engaged in Decoration Business.
(1) Curtain wall system and material
1. Expertise and brand competitiveness
The industry and target market of the Company have high requirements for the performance of participating enterprises which
has formed certain thresholds. Especially in the super high-rise buildings, large public buildings and special-shaped external
maintenance structures, the company has rich experience in project implementation. It has established business contacts and
cooperation with many large real estate development companies. The Company has a high reputation and strong market
competitiveness.
The Company has 437 patents (including 36 invention patents) and 2 software copyrights in the curtain wall system and
materials industry which has created many firsts in the industry and is one of the high-end preferred brands in the Chinese curtain
wall system materials industry.FANGDA is a nationwide well-known trademark in China.
2. Focusing on the high-end market to edge out competitors
In the fierce market competition, the Company accurately positions the market in the field of high-end energy-saving curtain
wall systems with high requirements for technology, service and management, and focuses its resources on high-end curtain wall
projects.The construction of a number of curtain wall projects won the national "Luban Award", "Zhan Tianyou Civil Engineering
Award", "National Quality Engineering Award", "China Construction Engineering Decoration Award", "Magnolia" Award and
"Customer Satisfaction Project" awards, and won the title of "China's curtain wall industry's most competitive top 10" and so on. The
Company has built a leading brand and created a clear edge in the high-end curtain wall market.
3. Well-developed industry base landscape
Thanks to continued investment in facilities, the Company has established a national business landscape with Shenzhen as the
headquarters, Dongguan Songshanhu as the base in the south, Beijing in the north, Chengdu in the southwest and Shanghai and
Nanchang in the east. The Dongguan Songshanhu and Nanchang bases are the largest and most advanced curtain wall system and
material production bases in China and across the world, fueling the Company to increase its market share and competitiveness.
4. General solutions
The Company has integrated the design, production, management and engineering of curtain wall systems to enjoy
technological, cost, quality and service advantages.
5. Talent
The Company has trained a group of outstanding teams with strong marketing technical, management and financial experience
from a large number of project implementation experience. The core backbone personnel are stable, ensuring the execution ability of
orders and bringing good user experience to customers.
6. Boost overseas market development to increase overseas orders
In recent years, the Company has increased its investment in overseas markets and gradually expanded its influence in
Australia and Southeast Asia. Thanks to good product quality and contract performance, it has continuously won the trust of new and
old customers and more orders. The overseas market orders are growing steadily.
(2) Rail transport equipment business
1. National development strategy
With the implementation of major national strategies such as the Guangdong, Hong Kong, and Macao Bay District, Xiong'an
New District, and the ―Belt and Road‖ Initiative, the region has radiated into Southeast Asia, South Asia, Central Asia, and West
Asia, and has extended to Eastern Europe and North Africa with strong demand for infrastructure construction and interconnection.
According to statistics as of December 31 2018, a total of 35 cities in the Chinese Mainland have completed the construction of
5,766.6 kilometers of urban rail transit lines. As the world's largest supplier of rail transit shielding door systems, the Company will
also make full use of its advantages in technology, brand, and service to further consolidate and increase its domestic market share,
and actively participate in rail transit construction in Guangdong, Hong Kong, Macau BayDistrict and Xiong'an New District. The
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方大集团股份有限公司 2018 年年度报告全文
Company will vigorously expand overseas markets, especially the ―Belt and Road‖ Initiative, maintain the continuity and stability of
overseas orders, balance the development of domestic and foreign markets, and continue to ―lead‖ the rail transit industry.
2. Technical advantage
Through continued independent innovation, the Company has developed the global leading metro screen door system with full
intellectual property right and broken the monopoly of overseas competitors. The Company has also compiled the Rail Transport
Station Screen Door Standard, which is the first of its kind in China. The standard was approved in April 2006 and was implemented
on March 1, 2007. As the first standard in the industry in China, the standard has played a key role in guiding the development of
China’s rail transport screen door industry and enabled the Company a dominant lead in the industry. Currently, the Company has
230 metro screen door patents, including 47 invention patents. The Company also has eight computer software copyrights.
3. Brand equity
So far, the Company has undertaken railway screen door projects in more than 30 cities including Hong Kong, Singapore,
Kuala Lumpur of Malaysia, Noida of India and Bangkok of Thailand. The Fangda subway screen door system has grasped a leading
market share and established incomparable brand influence thanks to its patents, standard and maintenance services. The Company
has become the largest railway screen door supplier in the world.
4. Industry chain advantage
As the first company to enter the subway screen door industry in China, the Company's subway screen doors have reached to
more than 60% of the subway cities in China, and many domestic subway screen doors have entered the maintenance period. The
Company actively expands its industrial chain and takes the lead in the domestic market to provide metro maintenance services. The
Company has a natural advantage in this high-end service industry. Our screen door system are independently developed by us, thus
enabling us to provide prompt, overall, effective and standard maintenance services for our customers without other third parties. As
more and more subways are opened, the business volume will continue to increase.
(3) New energy industry
The new energy business mainly comprises solar power PV application, PV construction and LED industry.
1. Technical advantage
With more than ten years’ experience in developing solar energy PV power generating curtain wall technology, the Company is
the earliest company that masters the intelligent property right in the designing, production and integration of solar energy PV curtain
wall systems and is a pioneer in the application of PV curtain wall technology.
2. Relation with other industries
Distributed solar power PV power generation is closely related to the Company’s existing businesses. Most distributed solar
power PV systems are closely related to construction. Moreover, the Company has more than 10 years' experience in electrical
product integration. The Company also has more than 20 years’ experience in construction management and has the level-1
construction curtain wall engineering qualification and electrical installation engineering qualification.
(4) Real Estate
1. The Company is committed to the Guangdong-Hong KongMacao Bay District, focusing on the development of urban
renewal projects in the core area of Shenzhen. Benefiting from the continued positive economic growth of Shenzhen and the rapid
economic development, it is expected that the Company's real estate sales and property leasing will continue to contribute profits to
the company.
2. Although the company is a later comer in the industry, the Shenzhen Fangda Town project was quickly recognized by the
market and the sales rate was faster. At the same time, the Company has been rated as ―Shenzhen Real Estate Development Industry
Development Potential Enterprise‖ by Shenzhen Housing Association for three consecutive years. In 2018, it has been awarded
―Shenzhen Real Estate Development Industry Brand Value Enterprise‖ with professional operations for commercial and property
management.
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方大集团股份有限公司 2018 年年度报告全文
Chapter IV Operation Discussion and Analysis
1. Summary
In 2018 China's economic downward pressure increased. The Sino-US trade friction continued to affect and the prices of major
raw materials fluctuated. The Company overcamed many unfavorable factors, completed the targets set at the beginning of the year
and continued to maintain a good development trend. In the report period, the Company recorded a sales income of
RMB3,048,680,100, up 3.43% year on year. The net profit attributed to owners of the parent reached RMB2,246,164,600, up 96.27%
year on year. The revenue from main businesses continued growing to RMB298,829,200, up 46.43% year on year.As of the end of
the reporting period, the Company's order reserve was RMB4,634,830,300 (excluding real estate sales), an increase of 14.02% from
the end of the previous year, which was 152.03% of the Company's sales revenue in 2018.
1. High-end curtain wall system and material business
In 2018, the Company adhered to the high-quality development road, made full use of the advantages of being located in the
core area of the Guangdong-Hong Kong-Macao Bay District and continued to deepen the high-end energy-saving curtain wall market
in Dawan District of Guangdong Hong Kong and Macao and achieved remarkable results. The number of new orders and the quality
were significantly improved. During the reporting period, the Company won a series high-end curtain wall and material projects
including the Shenzhen International Convention and Exhibition Center, Shenzhen Tencent Digital Building, Shenzhen Bao'an
Central District Haifu Ecological Building, Shenzhen Mawan Ecological Park, Shenzhen Shenye Midtown Project, Shenzhen
LongguangJiuzuan, Shenzhen HongrongyuanYicheng Center Garden, Zhuhai Youte Square, ZhongshanJiangbolong Science and
Technology Park, AIIB Beijing Headquarters, Shanghai Pudong Shipyard Phase II and III, Shanghai GemdaleJiuting Center, Suzhou
Sunan Vanke Yangshan North Phase II, Nanchang Business Union Center, Hefei Vanke Forest Park, Hangzhou Alibaba Babaxixi
Park Phase IV, Wuhan Rongchuan Center Phase III, Lanzhou Donghu Square and Chengdu Zhaoshang Grand Rubik Building
No.14with a total amount of RMB2.353, including RMB1.52 billion from the Guangdong-Hong Kong-Macau Bay District, which
accounts for 64.6% of the total, reflecting the Vompany's strong competitiveness in terms of product quality technical strength and
brand influence. During the reporting period, the Company achieved good results in the domestic market and also made new
breakthroughs in the overseas market. It signed projects such as Evermore in Melbourne Australia and Golder River in Ho Chi Minh
Vietnam to further expand the Company's business in the international market and improve influence of brands in overseas markets.
In 2018, the Company's curtain wall system and materials business realized sales income of RMB2,010,704,000 with a year-on-year
increase of 21.59% and net profit after deduction of RMB97,998,900, an increase of 1,123.00%. As of the end of the reporting period,
the Company's curtain wall system and materials business orders reserve was RMB3,176,378,500 with an increase of 14.85% over
the same period of the previous year, which was 157.97% of the sales revenue of the curtain wall system and materials business in
2018.The abundant order reserve has laid the foundation for the continuous development of the Company's curtain wall system and
materials business. It is expected that the curtain wall system and materials business will remain an important source of sales revenue
and profit for the Company.
In order to meet the Company's growing demand for orders, the Company continues to invest in hardware such as production
base construction. In June 2018, the Fangda Western Headquarters Base in Chengdu Xinjin started construction and will be finished
in the first half of 2019. The base covers an area of 45,000 square meters and has a total construction area of about 21,000 square
meters. It will become the most modern energy-saving and environmental protection curtain wall research and development and
production base in western China. The new production base invested and constructed in Shanghai Songjiang was started in January
2019. It is expected to be completed by the end of 2019. The base covers an area of 23,800 square meters and the total construction
area is about 43,000 square meters. After the completion of the two bases, the national industrial layout of the upgrade company will
be improved and the production capacity of the Company's energy-saving and environmental protection curtain wall will be
18
方大集团股份有限公司 2018 年年度报告全文
enhanced to provide guarantee for the Company's sustained and rapid development.
During the reporting period, the Company tried its best to convert orders into sales revenue and successfully completed and
delivered a series of high-end curtain wall projects such as the Shenzhen Evergrande Times Financial Center Project, Shenzhen
Vanke Binhai Landmark Building, Shenyang Merchants Diamond Hill Plaza Project, Hangzhou Huanglong Vanke International
Center and Shanghai Shipyard (Pudong) Area 2E3-2 (Phase I) and Zhonghai Taiyuan Yingze Bridge West Project. During the
reporting period, Shenzhen ShenyeShangcheng (South District), Shenzhen China Energy Storage Building, Guangzhou Southern
Power Grid Project and Shenzhen Fangda Town invested and constructed by the Company won the "China Construction Engineering
Decoration Award" thanks to the outstanding design and construction quality; the Hong Kong Chinese University (Shenzhen) curtain
wall project won the "Luban Award", the highest honor award in China's construction industry and the Shenzhen New Century
Wenbo Building project won the "My Favorite Curtain Wall Project" in Shenzhen. These honors highlights the Company's glory as a
leading brand in the industry.
2. Rail transport equipment business
In 2018, the Chinese manufacturing, innovation and construction made great progress. As the world's largest supplier of subway
screen door systems, the Company also seized the historical opportunity and took the "Belt and Road Initiative" opportunity to
accelerate the overseas market layout, which enabled the Company's rail transit business to achieve rapid growth in both Chinese and
overseas markets. In 2018, the Company won the first phase of the Ahmedabad Metro in India, the Golden Line of the Thai Metro,
the Line 3 of Shijiazhuang Metro, the second and third phases of the Wuhan Metro Line 8, the second and third phases of Chengdu
Metro Line 3 and the phase one of the Nanning Subway Line No.4, Line No.2 East Extension Line, Guiyang Metro Line No.2, Xi'an
Metro Line 1 Phase II, Xiamen Metro Line No.3 Phase I Project and won screen door maintenance contracts of the Nanchang
Subway No.1, Nanning Metro Line No.1, Nanjing Metro Line No.1, Wuhan Intercity Railway, Wuhan Metro Line No.2 and No.3,
Tianjin Metro Line No.1 East Extension Line and Shenzhen Metro Line No.11 with a total amount of RMB72,5864,000. As of the
end of the reporting period, the Company's rail transit industry order reached RMB1,458,451,800 with an increase of 12.25% over
the same period of last year, which is 489.93% of the Company's rail transit industry operating income in 2018.
During the reporting period, the first phase of the No.7 line of Wuhan Rail Transit, the first phase of the No. 11 line and the
Zhifang Line of the Wuhan City Rail Transit System were opened. All of the nine rail lines in Wuhan have adopted the Fangda
screen door system. Fangda's screen door system relies on many advantages such as "advanced performance, stable quality, reliable
operation, safety and attractive design" and participates in the historical transformation of rail transit from scratch to single line and
network in many cities in China. It has achieved a good market share in the world for the past five years.
Since the promulgation and implementation of the national industry standard "Urban Rail Transit Platform Screen Door" edited
by the Company on March 1 2007, it has played an active role in regulating and guiding the development and technological
innovation of the barrier door industry in China's rail transit platform. However, with the advancement of the industry's scientific and
technological level and the continuous emergence of new experiences and new demands in the practical application of rail transit
screen door products, this standard can no longer meet the actual needs of the industry. To this end in November 2018, the Company
once again led the revision of the "Urban Rail Transit Platform Screen Door" standard, highlighting the Company's position as a
leader in the field of urban rail transit platform screen doors, fully reflecting the Fangda screen door system in China's track leawding
advantages in many aspects such as brand influence, market share, patent ownership, standard setting and maintenance professional
services in the transportation sector.
3. New energy industry
During the reporting period, the three solar photovoltaic power plants that the Company had connected to the grid were
operating safely and steadily. In 2018, the total power generation was 20,737,000 kWh, the sales revenue was RMB20,475,500 and
the operating profit was RMB11,009,000, exceeding the expectation. Among them, the 20MW distributed photovoltaic power
generation project of Chayu Village, Xuanfeng Town, Luxi County, Jiangxi Province and the distributed photovoltaic power
generation project of, Songshan Lake in Dongguan have been included in the Renewable Issue issued by the Ministry of Finance the
National Development and Reform Commission and the National Energy Administration. The Company's solar photovoltaic power
19
方大集团股份有限公司 2018 年年度报告全文
station will continue to bring long-term stable income and profit to the company and play a good role in promoting low-carbon
development ecological civilization construction and accelerating the development of circular economy.
4. Real estate
(1) Industry development and impacts on the Company's future business and profitability
During the reporting period, the Fangda Town project sold by the Company was in Nanshan District,Shenzhen.As a first-tier
city in China, Shenzhen has been a hot city with rapid population inflows and sustained economic growth in recent years. In 2018,
Shenzhenhas adjusted the urban renewal work reform project. There are not many industrial reform projects that are on sale or about
to enter the market. At the same time, driven by the sales price of the real estate around the project, the sales price and gross profit
margin of the Company's Fangda Town project increased significantly during the reporting period. In 2019, the remaining saleable
area of the project is approximately 10,675.75 square meters and the estimated sales price and gross profit margin can maintain or
exceed the 2018 level.
During the reporting period, the 1# building of the second phase of Shenzhen Fangda Town Project has completed planning
acceptance. Except for part of its own use, the remaining area is about 74,000 square meters for rental. As of the end of the reporting
period, the lease area that has been signed reached 11,000 square meters. The commercial part of the Fangda Town project was
opened in October 2018. As of the end of the reporting period, the signing rate of commercial shops was 90%, which have been
opened. It is expected that the real estate sales and property leasing will continue to contribute profits and cash flow to the Company
in the future.
(2) Main business model, landscape, market position and competitiveness of the Company
The Company's business model adopts the traditional vertical overlap hybrid development model that includes land acquisition
and property management vertically overlapping in management and each project is independently operated by a special project
company.
The Company will focus on Guangdong, Hong Kong, and Macau Bay Area, focusing on the development of Shenzhen's urban
renewal projects. The development of products will be mainly office buildings, supporting businesses, security housing, or residential
properties. The Company has established a professional team to operate and manage the Company's businesses and properties.
Although the Company is a late comer in the real estate industry, the Fangda Town project developed by the Company has been
quickly recognized by the market and the sales rate has been fast. At the same time, the Company has been rated as "Shenzhen Real
Estate Development Industry Development Potential Enterprise" by the Shenzhen Real Estate Industry Association for three
consecutive years. In 2018, it was named "Shenzhen Real Estate Development Industry Brand Value Enterprise".With the influence
of Fangda Brand and its strong professional level, the Company has gained a firm foothold in the market competition and its market
position has gradually increased.
(3) Land reserve
Project held by the Company:
Project Purpose Development area Building are Location Notes
2 2
(m ) (m )
Fangda Town Industria 35,397.60 212,400.00 Shenzhen Basically completed, available
l for sale and lease
Nanchang Commer 16,608.55 66,433.93 Nanchang In construction, available for
HonggutanFenghuangzh cial presales in 2019
ou Project
During the reporting period, in addition to the above-mentioned projects, the Company also has a cooperative project Shenzhen
FangdaBangshen Project, which covers an area of 20,714.9 square meters. During the reporting period, it is actively promoting
related matters related to project renewal declaration.
During the reporting period, Shenzhen ZhongrongLitai Investment Co. Ltd. a controlled subsidiary of the Company and
Shenzhen HenggangDakang Co. Ltd. and Shenzhen HenggangDakang Co. Ltd. Shangzhong Branch signed the "Shenzhen
20
方大集团股份有限公司 2018 年年度报告全文
Henggangda". The cooperation agreement for the urban renewal project along the Dakang River area of Shenzhen
HenggangDakangJoint Stock Co., Ltd. covering an area of about 80000 square meters is currently being actively promoted.
In addition, the Company does not hold other development projects and land to be developed.
(4) Real estate development
Project under Interests Starting time Floor area (m2) Building are Finished Estimated total Invested amount
2 2
construction percentage (m ) building are (m ) investment (in (in RMB100
RMB100 million)
million)
Fangda 100% May. 2014 35,397.6 212,400 217,763.69 25.85 23.37
Town
Nanchang 100% May. 2018 16,608.55 66,433.93 0 6.70 2.3
HonggutanF
enghuangzho
u Project
(5) Project sales in the report period
Project under Interests percentage Sellable area (m2) Sold area (m2)
construction
Shenzhen 100% 93,086.25 82,410.50
Fangda Town
(6) Real estate lease
Form City Interests Floor area (m2) Lease ratio (leasable) Notes
percentage
Office Shenzhen 100% 26,040.55 97.00% Fangda Building
building
Commercial Shenzhen 100% 31,543.00 90.00% Commercial podium of
shop Fangda Town
Office Shenzhen 100% 11,893.73 13.19% Office building of
building Fangda Town
Office Jiangxi 100% 5,387.50 100.00% Jiangxi New Material
building
Plant Jiangxi 100% 45,623.82 96.52% Jiangxi New Material
(7) Financing in the report period
Financing Currency Balance (in RMB) Financing cost (interest Due date Collateral/guarantee
source rate)
Bank loan RMB 893,978,153.39 Interval rate, between 10% 2023-2-11 Pledged by equity in
below the benchmark interest Fangda Real Estate Co.,
rate and 60% above the Ltd. and guaranteed by the
benchmark interest rate on the Company Guarantee
withdrawal date
(8) Development strategy and operation plan in the next year
21
方大集团股份有限公司 2018 年年度报告全文
The Company has taken the real estate business as one of the important sectors of the Company. The Company's development
strategy is to become an influential and professional company in the core area and to win customer satisfaction through quality
products.
In 2019, the Company plans to complete the rental and sales of the Fangda Town project except for its own use; to realize the
pre-sale of the Nanchang Honggutan Phoenix Island project; to actively promote the project declaration of the Shenzhen
FangdaBangshen project; to complete the preparations before the Dukang project declaration .It is expected that the real estate sales
and property leasing will continue to contribute profits to the Company in the future.
(9) Bank mortgage loan guarantee provided for commercial housing purchasers
The Group’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. By 31.12.18, the Company has provided periodic guarantee of RMB778,189,500.
(10) Property management
In 2018 the wholly-owned subsidiary Fangda Property continued to improve the on-site property management quality of
Shenzhen Fangda Town, Fangda Building and Dongguan Industrial Park. Through refined management, customers were satisfied by
the services.
5. Repurchase of B shares and increase in shareholding by actual controllers
The B-share market has long been in a downturn due to the loss of financing functions, poor liquidity, and small market capacity.
The Company’s B share price has largely deviated from the Company’s actual operating conditions. The performance of the B shares
is not in line with the Company’s intrinsic value, and the Company’s investment value is underestimated. In order to enhance the
Company's investment value and maximize the interests of shareholders, the Company reviewed and approved two repurchases of B
shares and cancellation in 2018. As of the disclosure date of this report, the Company has repurchased 60,258,065 B shares and used
funds of HKD227,491,556.01, which has maintained the stability of the market and enhanced investors' confidence.The following
table shows the details:
Repurchase Period Number of shares Fund used Date of cancellation
First August 13, 2018 to August 16, 2018 28,160,568 114,478,923.89 29.08.18
Second December 19, 2018 to January 3, 2019 32,097,497 113,012,632.21 11.01.19
Total 60,258,065 227,491,556.10
Since optimistic about the Company's future development, since 2011, the company's actual controller, chairman and president
Mr. XiongJianming and Banglin Technology Company and Shengjiu Investment Co. Ltd. controlled by him have been increasing
their shareholdings. In the reporting period, Banglin Company increased its holdings of 9,819,645A shares and Shengjiu Company
increased its holdings of 2,103,856 B shares. These are the actions of the actual controllers to stabilize the Company's share price
during the declining of the Company's stock price.
6. Innovation
The Company adheres to the business philosophy of "technology-based innovation" and the scientific and technological
innovation development path. Its independent innovation capabilities and technology level has always been at the forefront of
domestic similar enterprises. The year 2018 is the company's management innovation year. The Company comprehensively improves
production efficiency and project management efficiency through management model innovation, system innovation and
technological innovation.
In 2018, the Company edited and prepared 10 national provincial and municipal standards, applied for 27 patents and obtained
23 new authorized patents including 4 invention patents, and independently developed new products "BIM system parameter design
development and application" and 18 items such as "Enhanced PEDC_IBP_200 R&D" and "Functional R&D of Passenger
Detectors". The company's screen door industry takes intelligent manufacturing as the starting point and develops automatic
22
方大集团股份有限公司 2018 年年度报告全文
glue-making robots and automatic welding robots to put into trial production promotes the intelligent production of welding and
rubbering promotes the technical level and product quality and reduces the labor intensity of employees in order to improve product
market competitiveness, reduce labor costs and improve economic efficiency.
In 2018, the Company focused on management refinement and service refinement, implemented virtual server solutions and
independently established a cloud terminal management system to achieve the goals of reducing office costs, cross-regional
cross-time office and data security management, effectively improve office IT systems, convenience and security. The Shenzhen
Fangda Town project built by the Company has gradually introduced the building intelligent control system, parking space guidance
system, visitor management system and self-paying system. While realizing the innovation of management mode, it also saves
management resources.
7. Awards
During the reporting period, the Company was awarded Top 100 Listed Companies in China, the Best Employer Award in
China, Top 500 Enterprises in Guangdong, the Top 100 in Guangdong Manufacturing Industry, Top 100 Private Enterprises in
Guangdong and the 40th Anniversary of Reform and Opening up, Guangdong Excellent Enterprises, Guangdong Provincial
Independent Innovation Demonstration Enterprise, Guangdong Province Honesty Demonstration Enterprise, Guangdong Provincial
Contract-honoring and Credit Enterprise, Shenzhen Top 100 Enterprises and Shenzhen Outstanding Social Responsibility Enterprise,
won the National Outstanding Foreign Investment Enterprise - Harmonious Labor Relations Promotion Award, Best Board of
Directors In 2017. In the information disclosure assessment, the Company was awarded the highest level A of the Shenzhen Stock
Exchange and the chairman and president of the company Mr. XiongJianming was elected as the representative of the 13 th National
People's Congress.
A number of curtain wall projects undertaken by the wholly-owned subsidiary FangdaJianke won the awards such as the "Luban
Award", "China Construction Engineering Decoration Award", "Excellent Quality Award" and "My Favorite Curtain Wall Project".
FangdaZhichuang, a wholly-owned subsidiary was awarded the honorary title of ―Excellent Contractor‖ issued by Nanjing
Metro Operation Company and Tianjin Metro Operation Company and ―Excellent Contractor‖ issued by MTR Rail Transit Co.
Ltd.Mr. XiongHaigang, the general manager of FangdaZhichuang was named "the 40th anniversary of reform and opening up
affecting the innovation and development of Shenzhen equipment industry."
Fangda Real Estate Co. Ltd., a wholly-owned subsidiary, was awarded the ―Shenzhen Real Estate Development Industry Brand
Value Enterprise‖.
Xu Weihua, an employee of Fangda Jiangxi New Materials Co. Ltd., a wholly-owned subsidiary, won the ―Nanchang May 1st
Labor Medal‖ Fang Hongjian staff, Li Honglin and Wei Zhengpei were awarded the title of ―Star Craftsman‖ in Shenzhen
Decoration Industry.
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.3 – Listed Companies Engaged in Property Development.
II. Main business analysis
1. Summary
For details see Management Discussion and Analysis – 1. Profile
2. Income and costs
(1) Turnover composition
In RMB
23
方大集团股份有限公司 2018 年年度报告全文
2018 2017
Proportion in Proportion in YOY change (% )
Amount Amount
operating costs (%) operating costs (%)
Total turnover 3,048,680,152.06 100% 2,947,470,813.58 100% 3.43%
Industry
Metal production 2,010,704,004.96 65.95% 1,653,688,831.23 56.11% 21.59%
Railroad industry 297,686,976.09 9.76% 339,399,859.01 11.51% -12.29%
New energy industry 19,625,478.18 0.64% 21,848,200.20 0.74% -10.17%
Real estate 697,518,090.10 22.88% 911,195,066.07 30.91% -23.45%
Others 23,145,602.73 0.76% 21,338,857.07 0.72% 8.47%
Product
Curtain wall system
2,010,704,004.96 65.95% 1,653,688,831.23 56.11% 21.59%
and materials
Subway screen door
297,686,976.09 9.76% 339,399,859.01 11.51% -12.29%
and service
PV power generation
19,625,478.18 0.64% 21,848,200.20 0.74% -10.17%
products
Real estate sales 697,518,090.10 22.88% 911,195,066.07 30.91% -23.45%
Others 23,145,602.73 0.76% 21,338,857.07 0.72% 8.47%
District
In China 2,969,200,798.04 97.39% 2,915,698,936.74 98.92% 1.83%
Out of China 79,479,354.02 2.61% 31,771,876.84 1.08% 150.16%
(2) Industries, products or districts that take more than 10% of the Company’s business turnover or profit
√ Applicable □ Inapplicable
Whether the Company needs to comply with disclosure requirements of special industries
Yes
Property development and decoration industries
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.6 – Listed Companies Engaged in Decoration Business.
In RMB
Year-on-year Year-on-year Year-on-year
Turnover Operation cost Gross margin change in change in change in gross
operating revenue operating costs margin
Industry
Metal production 2,010,704,004.96 1,720,929,280.88 14.41% 21.59% 16.97% 3.38%
24
方大集团股份有限公司 2018 年年度报告全文
Real estate 697,518,090.10 389,500,898.70 44.16% -23.45% 42.19% -25.78%
Railroad industry 297,686,976.09 219,794,604.25 26.17% -12.29% -10.68% -1.32%
Product
Curtain wall
system and 2,010,704,004.96 1,720,929,280.88 14.41% 21.59% 16.97% 3.38%
materials
Real estate sales 697,518,090.10 389,500,898.70 44.16% -23.45% 42.19% -25.78%
Metro screen
297,686,976.09 219,794,604.25 26.17% -12.29% -10.68% -1.32%
door
District
In China 2,969,200,798.04 2,265,862,804.15 23.69% 1.83% 16.16% -9.41%
Main business statistics adjusted in the recent one year with the statistics criteria adjusted in the report period
□ Applicable √ Inapplicable
Different business types of the Company
In RMB
Business type Turnover Operation cost Gross margin
Curtain wall system and
2,010,704,004.96 1,720,929,280.88 14.41%
materials
Whether the Company runs business through the Internet
□ Yes √ No
Whether the Company runs overseas projects
□ Yes √ No
Main business statistics adjusted in the recent one year with the statistics criteria adjusted in the report period
□ Applicable √ Inapplicable
(3) The physical sales revenue is high the labor service revenue
□ Yes √ No
(4) Performance of signed major sales contracts in the report period
√ Applicable □ Inapplicable
Whether the Company needs to comply with disclosure requirements of special industries
Yes
Property development and decoration industries
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.6 – Listed Companies Engaged in Decoration Business.
In RMB
Project amount Cumulative recognized income Amount of unfinished part
25
方大集团股份有限公司 2018 年年度报告全文
Unfinished project 5,824,972,385.87 2,841,786,441.83 2,983,185,944.04
In RMB
Income Cumulative Balance of
Construction Completion Payment
Project Project amount recognized in recognized accounts
period percentage collection
this period income receivable
Shenzhen
Hanjing
2015.09-2019.
Financial 382,393,042.11 96.00% 117,466,077.89 366,756,750.91 291,779,941.07 74,976,809.84
12
Center curtain
wall project
Tencent Digital
Building 2018.09-2019.1
314,399,200.00 0.00% 0.00 0.00 31,440,000.00 0.00
curtain wall 1
project
Other note
□ Applicable √ Inapplicable
In RMB
Accumulative Balance of unpaid
Accumulative
recognized gross Estimated loss Settled amount amount of finished
occurred costs
margin project
Finished but not
7,409,639,074.33 1,086,522,725.21 1,603,589.59 8,365,879,441.60 128,678,768.35
settled project
In RMB
Balance of unpaid amount of
Project Contract amount Settled amount
finished project
Other note
□ Applicable √ Inapplicable
(5) Operation cost composition
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.6 – Listed Companies Engaged in Decoration Business.
Main business cost
In RMB
2018 2017
Proportion in Proportion in
Cost composition Business type YOY change (% )
Amount operating costs Amount operating costs
(%) (%)
Curtain wall
Raw materials 1,236,717,752.50 71.86% 983,487,997.36 66.85% 5.01%
system and
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方大集团股份有限公司 2018 年年度报告全文
materials
Curtain wall
Installation and
system and 357,806,657.79 20.79% 334,781,910.86 22.76% -1.97%
engineering costs
materials
Curtain wall
Labor cost system and 80,488,503.77 4.68% 76,062,568.69 5.17% -0.49%
materials
Industry
Industry
In RMB
2018 2017
Proportion in Proportion in
Industry Item YOY change (% )
Amount operating costs Amount operating costs
(%) (%)
Metal production Raw materials 1,236,717,752.50 71.86% 983,487,997.36 66.85% 5.01%
Installation and
Metal production 357,806,657.79 20.79% 334,781,910.86 22.76% -1.97%
engineering costs
Metal production Labor cost 80,488,503.77 4.68% 76,062,568.69 5.17% -0.49%
Construction and
Real estate 25.88% 144,887,293.21 52.89% -27.01%
installation cost 100,803,413.00
Real estate Land cost 57.24% 71,670,682.41 26.16% 31.08%
222,947,137.10
Real estate Loan interest 2.06% 10,433,871.29 3.81% -1.75%
8,022,581.23
Real estate Labor cost 2.81% 2,950,138.93 1.08% 1.73%
10,943,065.48
Notes
(6) Change to the consolidation scope in the report period
√ Yes □ No
1. In the current period, Shanghai Fangda Jingling Technology Co. Ltd. and Shenzhen Fangda Cloud Rail Technology Co. Ltd. have
been newly established two new companies in the current consolidated statement.
2. In this period, the indirect controlled subsidiary Fangda Decoration Engineering (Shenyang) Co. Ltd. was liquidated. Therefore,
one subsidiary is removed from the consolidated statement of this period.
(7) Major changes or adjustment of business, products or services in the report period
□ Applicable √ Inapplicable
27
方大集团股份有限公司 2018 年年度报告全文
(8) Major sales customers and suppliers
Main customers
Total sales amount to top 5 customers (RMB) 563,898,240.47
Proportion of sales to top 5 customers in the annual sales 18.50%
Percentage of sales of related parties in top 5 customers in
0.00%
the annual sales
Information of the Company's top 5 customers
No. Customer Sales (RMB) Percentage in the annual sales
1 No.1 130,394,127.62 4.28%
2 No.2 123,189,990.17 4.04%
3 No.3 114,044,735.81 3.74%
4 No.4 110,847,181.39 3.64%
5 No.5 85,422,205.48 2.80%
Total -- 563,898,240.47 18.50%
Other information about major customers
□ Applicable √ Inapplicable
Main suppliers
Purchase amount of top 5 suppliers (RMB) 380,952,155.62
Proportion of purchase amount of top 5 suppliers in the
18.58%
total annual purchase amount
Percentage of purchasing amount of related parties in top
0.00%
5 customers in the annual purchasing amount
Information of the Company’s top 5 suppliers
No. Supplier Purchase amount (RMB) Percentage in the annual purchase amount
1 No.1 134,620,520.47 6.56%
2 No.2 69,068,820.77 3.37%
3 No.3 63,011,613.48 3.07%
4 No.4 57,243,171.56 2.79%
5 No.5 57,008,029.34 2.78%
Total -- 380,952,155.62 18.58%
Other information about major suppliers
□ Applicable √ Inapplicable
3. Expenses
In RMB
28
方大集团股份有限公司 2018 年年度报告全文
2018 2017 YOY change (% ) Notes
Sales expense 49,833,945.89 61,063,948.40 -18.39%
Administrative expense 140,002,624.79 134,819,477.53 3.84%
Mainly due to stopping of
capitalization of the annual interest
Financial expenses 82,328,388.89 67,058,846.06 22.77%
expense of the Fangda Town project
this year
R&D cost 19,854,244.58 17,997,202.77 10.32%
4. R&D investment
√ Applicable □ Inapplicable
The Company adheres to the business philosophy of "technology-based innovation" and the scientific and technological
innovation development path. Its independent innovation capabilities and technology level has always been at the forefront of
domestic similar enterprises. The Company is committed to the research and development of independent intellectual property
products and enhances its core competitiveness. In 2018, the Company edited and prepared 10 national provincial and municipal
standards, applied for 27 patents and obtained 23 new authorized patents including 4 invention patents, and independently developed
new products "BIM system parameter design development and application" and 18 items such as "Enhanced PEDC_IBP_200 R&D"
and "Functional R&D of Passenger Detectors". The Company's screen door industry takes intelligent manufacturing as the starting
point and develops automatic glue-making robots and automatic welding robots to put them into trial production, promotes the
intelligent production of welding and rubbering, promotes the technical level and product quality, and reduces the labor intensity of
employees in order to improve product market competitiveness, reduce labor costs and improve economic efficiency.
R&D investment
2018 2017 Change
R&D staff number 404 400 1.00%
R&D staff percentage 18.31% 18.60% -0.29%
R&D investment amount
138,333,164.52 112,793,075.49 22.64%
(RMB)
Investment percentage in
4.54% 3.83% 0.71%
operation turnover
Capitalization of R&D
0.00 0.00 0.00%
investment amount (RMB)
Percentage of capitalization of
R&D investment in the R&D 0.00% 0.00% 0.00%
investment
Reason for the increase in the percentage of R&D investment in the business turnover
√ Applicable □ Inapplicable
Explanation of the increase in the capitalization of R&D investment
√ Applicable □ Inapplicable
29
方大集团股份有限公司 2018 年年度报告全文
5. Cash flow
In RMB
Item 2018 2017 YOY change (% )
Sub-total of cash inflow from
2,974,390,387.48 3,549,895,018.15 -16.21%
business operations
Sub-total of cash outflow from
2,992,061,872.42 -13.53%
business operations 2,587,287,667.91
Cash flow generated by
557,833,145.73 -30.61%
business operations, net 387,102,719.57
Sub-total of cash inflow
7,678,717,862.02 11,213,677,450.42 -31.52%
generated from investment
Subtotal of cash outflows 7,471,021,595.30 11,602,815,885.41 -35.61%
Cash flow generated by
207,696,266.72 -389,138,434.99 153.37%
investment activities, net
Subtotal of cash inflow from
708,000,000.00 978,503,029.59 -27.64%
financing activities
Subtotal of cash outflow from
1,149,248,335.73 11.34%
financing activities 1,279,597,053.40
Net cash flow generated by
-170,745,306.14 -234.77%
financing activities -571,597,053.40
Net increase in cash and cash
24,905,355.13 -4,539,039.85 648.69%
equivalents
+Explanation of major changes in related data from the same period last year
√ Applicable □ Inapplicable
Explanation of major difference between the cash flow generated by operating activities and the net profit in the year
√ Applicable □ Inapplicable
During the reporting period, the difference between the net cash flow of operating activities of the company and the net profit of the
year was mainly due to the fact that the changes in fair value did not generate cash flow during the current period.
III. Non-core business analysis
√ Applicable □ Inapplicable
In RMB
Amount Profit percentage Reason Whether continuous
Mainly from bank financial
Investment income 27,776,084.43 0.94% No
products
Gain/loss caused by It is mainly due to changes
2,913,858,560.57 98.12% No
changes in fair in fair value arising from
30
方大集团股份有限公司 2018 年年度报告全文
value follow-up measurement of
fair value of building 1# of
Fangda Plaza project.
Mainly bad debt provision
Assets impairment 239,866,511.30 8.08% corresponding to accounts Yes
receivable
Non-operating
3,712,594.09 0.13% No
revenue
Non-business
3,846,202.80 0.13% No
expenses
4. Assets and liabilities
1. Major changes in assets composition
In RMB
End of 2018 End of 2017
Change
Proportion in Proportion in Notes
Amount Amount (% )
total assets total assets
1,389,062,083. 1,180,398,479.
Monetary capital 13.03% 15.48% -2.45%
76 51
Account 1,920,075,031. 1,920,372,426.
18.01% 25.18% -7.17%
receivable 85 16
651,405,832.2
Inventory 6.11% 819,610,960.67 10.75% -4.64%
9
Mainly the Fangda Plaza project 1#
Investment real 5,256,442,406. 2,253,794,404. building was converted into investment
49.32% 29.56% 19.76%
estate 63 55 real estate and subsequent value added
by fair value
Long-term share
70,105,657.88 0.66% 34,142,055.62 0.45% 0.21%
equity investment
455,274,241.8
Fixed assets 4.27% 468,118,279.18 6.14% -1.87%
3
Construction in
58,269,452.72 0.55% 2,668,198.62 0.03% 0.52%
process
208,000,000.0
Short-term loans 1.95% 616,000,000.00 8.08% -6.13% Due to repayment of borrowing
0
1,193,978,153.
Long-term loans 11.20% 893,978,153.39 11.72% -0.52%
39
31
方大集团股份有限公司 2018 年年度报告全文
2. Assets and liabilities measured at fair value
√ Applicable □ Inapplicable
In RMB
Accumulative
Gain/loss changes in fair
Impairment Amount
Opening caused by value Amount sold in Closing
Item provided in the purchased in
amount changes in fair accounting into the period amount
period the period
value the income
account
Financial assets
1. Financial
assets measured
at fair value
with variations
accounted into
current income
account
(excluding
derivative
financial assets)
2. Derivative
financial assets
3. Sellable 21,674,008.2
28,562,575.67 6,888,567.44
financial assets 3
21,674,008.2
Subtotal 28,562,575.67 6,888,567.44
3
Investment real 1,492,278,859. 2,916,922,279. 5,230,896,06
11,675,404.61 72,101,165.00 5,343,905.00
estate 69 48 7.50
Productive
biological
assets
Others
1,520,841,435. 2,916,922,279. 5,252,570,07
Total 11,675,404.61 6,888,567.44 72,101,165.00 5,343,905.00
36 48 5.73
Financial 159,000.00 1,625,725.00
32
方大集团股份有限公司 2018 年年度报告全文
liabilities
Major changes in the assets measurement property of the Company in the report period
□ Yes √ No
3. Right restriction of assets at the end of the period
Item Closing book value Reason
Warranty, time deposit, B share repurchase
Monetary capital 432,871,193.08
fund
Fixed assets 51,298,617.58 Loan by pledge
Investment real estate 309,189,866.37 Loan by pledge
100% stake in Fangda Property
200,000,000.00 Loan by pledge
Development held by the Company
Total 993,359,677.03 --
V. Investment
1. General situation
□ Applicable √ Inapplicable
2. Major equity investment in the report period
□ Applicable √ Inapplicable
3. Major nonequity 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
33
方大集团股份有限公司 2018 年年度报告全文
In RMB10,000
Proporti
on of
closing
investm Actua
Derivati Impairm ent l
Initial Amount Closing
ve Related Amount ent amount gain/l
Relation Initial Start investm sold in investm
investm transacti Type End date in this provisio in the oss in
ship amount date ent this ent
ent on period n (if closing the
amount period amount
operator any) net report
assets in period
the
report
period
Shangha
Shanghai 16,988.7 14,604.2 -506.3
i Futures 151.25 151.25 2,535.76
No No aluminu 27.09.17 10.07.19 5 4 0.49% 4
Exchang
m
e
Capital source Self-owned fund
Lawsuit (if any) None
Disclosure date of derivative
investment approval by the Board of 31.10.17
Directors (if any)
Disclosure date of derivative
investment approval by the
Shareholders’ Meeting (if any)
Risk analysis and control measures
To prevent the risk of fluctuation of raw material prices, the Company adopted the
for the derivative holding in the report
aluminum futures exchanged at the domestic futures exchange to provide hedging for
period (including without limitation
aluminum as a raw material for the Company. The Company has set up and implemented the
market, liquidity, credit, operation and
Provincial Regulations on China Fangda Group Domestic Futures Hedging to prevent risks.
legal risks)
Changes in the market price or fair
value of the derivative in the report
period, the analysis of the derivative’s
Fair value of derivatives are measured at open prices in the futures market
fair value should disclose the method
used and related assumptions and
parameters.
Material changes in the accounting
policies and rules related to the
None
derivative in the report period
compared to last period
34
方大集团股份有限公司 2018 年年度报告全文
Opinions of independent directors on
the Company’s derivative investment None
and risk controlling
5. Use of raised capital
□ Applicable √ Inapplicable
The Company used no raised capital in the report period.
VI. 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
VII. 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
Subway
FangdaZhich 105,000,000. 494,097,421. 220,303,754. 297,686,976. 84,991,503.9
Subsidiary screen door 79,084,666.1
uang 00 66 55 09 8
and service
6,269,497,65 3,175,084,56 681,709,471. 2,859,145,45 2,153,017,26
Fangda 200,000,000.
Subsidiary Real estate 8.70 9.41 17 5.13 3.64
Property 00
Curtain wall 3,005,611,69 1,030,991,39 1,753,981,41 219,098,842. 208,352,437.
FangdaJianke Subsidiary system and 500000000 3.29 3.40 6.61 60 88
materials
Acquisition and disposal of subsidiaries in the report period
√ Applicable □ Inapplicable
Acquisition and disposal of subsidiaries in Impacts on overall production, operation
Company
the report period and performance
Shanghai FangdaQingling Technology Co., Newly set None
35
方大集团股份有限公司 2018 年年度报告全文
Ltd.
Shenzhen Fangda Cloud Rail Technology
Newly set None
Co., Ltd.
Fangda Decoration Engineering
Liquidation None
(Shenyang) Co., Ltd.
Major joint-stock companies
VIII. Structural entities controlled by the Company
□ Applicable √ Inapplicable
IX. Future Prospect
(1) Competition map and development trned
1. Curtain wall and material system industry
With the development of the major national strategies such as the construction of Guangdong, Hong Kong, and Macau Bay
Area and Xiong'an New District, commercial and office buildings, urban commercial complexes, star-rated hotels and other urban
commercial spaces as well as airports, stations, rail transit, museums, libraries, Public spaces such as stadiums, schools, and hospitals
have strong demand for curtain walls, and the curtain wall system and material industry still have a good foundation. Over recent
years, a series of industry policies will be issued to push forward the industry, providing a gold opportunity for the development of
energy-saving curtain wall and material business.
2. Rail transport equipment business
In recent years, with the support of national policies, the urban transportation industry will continue to develop well and the
market scale will continue to expand with significant economic benefits. According to statistics as of December 31 2018, a total of 35
cities in the Chinese Mainland have completed the construction of 5,766.6 kilometers of urban rail transit lines. The total number of
newly added operation lines in the three years since the "13th Five-Year Plan" has been 2148.7 kilometers and the average annual
new line length is 716.2 kilometers.
With the implementation of major national strategies such as the Guangdong, Hong Kong, and Macao Bay District, Xiong'an
New District, and the ―Belt and Road‖ Initiative, the region has radiated into Southeast Asia, South Asia, Central Asia, and West
Asia, and has extended to Eastern Europe and North Africa with strong demand for infrastructure construction and interconnection.
Therefore, the rail transit equipment industry will face new and unprecedented opportunities for development.
3. New energy industry
Photovoltaic is a clean energy source supported by the government. In 2019, the photovoltaic industry and policy trends are
still improving. The photovoltaic industry will enter a new stage of development from high-speed development that relies on
government subsidy to refined high-technology development, reshuffling the industry development direction.
4. Real estate
Shenzhen is located in the core area of Guangdong, Hong Kong and Macau Bay, and the economy continues growing. The
Company focuses on the development of urban renewal projects in Shenzhen. With the rapid development of Shenzhen's economy, it
is expected that there will still be some room for development in the real estate industry in Shenzhen and surrounding cities.
(2) Company development strategy and business plan
In 2019, the Company's management theme was to "reshape the management foundation of Fangda" and improve management
efficiency through reshaping. The energy-saving curtain wall and materials industry will continue to give full play to its brand
36
方大集团股份有限公司 2018 年年度报告全文
advantages and steadily and securely operate traditional high-quality markets such as Guangdong-Hong Kong-Macao Bay, Yangtze
River Delta, Beijing-Tianjin-Hebei and Chengdu-Chongqing areas and will promote overseas markets step by step. As the world's
largest rail transit screen door system supplier, the Company will continue to consolidate its leading position in the domestic industry
actively explore overseas markets vigorously develop technical maintenance services and broaden the Company's new product range.
The new energy industry will continue to manage the safe operation and maintenance of the three power stations to ensure power
generation efficiency. The Company will expand the new energy photovoltaic business in accordance with relevant national policies
and in light of the Company's own situation.The real estate business will focus on urban renewal projects in the core areas of
Guangdong-Hong Kong-Macau Bay and complete the development, rental and sales of the current four projects.
(3) Capital demand and source for projects in progress
To realize the business target in 2019, the Company will develop suitable financial and capital plans, accelerate the collection
of accounts receivable, sales payment from sales of Fangda Town, expand financing channels, and use share issuance, bank loans and
other financing products to meet the demand for capital.
(4) Risks and solutions
1. Market risks and measures
As the overall designing and engineering quality continues improving in the domestic construction curtain wall industry,
curtain wall products will become increasingly standard, intensifying the market competition. In addition, the market concentration
of first- and second-tier cities will increase, and regional competition will become more intense. The Company will continue to adopt
a prudent management policy, refined management, and technological innovations to reduce management costs and accelerate the
return of funds. Through new technologies and processes, we will improve product quality, lower costs and elevate earnings. 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.
2. Management risks and measures
With an increase in orders in recent years and operation of five industry bases, the Company has continued expanding rapidly
in terms of capitalization, business and teams. The organizational structure and management system have become more complicated,
leading to management risks in industry expansion. The Company will continue to improve the management mode, integrate
business management, optimize the business flow, seeking to build a high-efficient and solid management team. We will introduce
high-quality, professional technical and management talents in different fields to strengthen the Company's core competitiveness.
3. Production and operation risks and measures
The macro-economy and market demand have added to the fluctuation in prices of main raw materials such as aluminum and
steel and labor, affecting the Company’s profitability and creating additional production and operation risks for the Company. The
Company has sought to lower the purchase and production costs, pay attention to technical R&D, reduce consumption of raw
materials, introduce automatic and intelligent production equipment, strengthen staff training to improve working efficiency.
4. Solar PV power plant risks and measures
The industry is closely related to policies of the local government. Changes in policies will have large impacts on the industry. The
Company will continue paying attentions to the development of the industry. The Company will conduct adequate verification on
project feasibility, control costs, quality and schedules strictly, and improve its development, construction and maintenance
capabilities.
37
方大集团股份有限公司 2018 年年度报告全文
X. Acceptance of surveys, negotiation and visits
1. Reception of investigations, communications, or interviews in the reporting period
√ Applicable □ Inapplicable
Time/date Way Visitor Disclosure of information
Inquiry about the Company's operation
08.01.18 Telephone communication Individual
condition
Inquiry about the Company's shares with
10.01.18 Telephone communication Individual
sales restriction
Inquiry about the progress of the Fangda
18.01.18 Telephone communication Individual
Town project
Inquiry about the Company's result
22.01.18 Telephone communication Individual
forecast
Inquiry about the Company's future
25.01.18 Telephone communication Institution
development strategy
Inquiry about the Company' semi-year
02.02.18 Telephone communication Individual
performance
05.02.18 Telephone communication Individual Inquiry about project bidding
Inquiry about the sales of the Fangda
09.02.18 Telephone communication Individual
Town project
Inquiry about the Company's profit
23.02.18 Telephone communication Individual
distribution
Inquiry about pledging of shares by
26.02.18 Telephone communication Institution
major shareholders
Inquiry about the Company's operation
02.03.18 Telephone communication Individual
condition
Inquiry about the Company's operation
08.03.18 Telephone communication Individual
condition
Inquiry about the Company's operation
22.03.18 Telephone communication Individual
condition
Inquiry about the Company's operation
28.03.18 Telephone communication Individual
condition in Q1
Enquiry about approval progress of the B
18.07.18 Telephone communication Individual
share repurchase
Inquiry about the Company's operation
24.07.18 Telephone communication Individual
condition
Inquiry about the progress of the Fangda
06.08.18 Telephone communication Individual
Town project
38
方大集团股份有限公司 2018 年年度报告全文
17.08.18 Telephone communication Individual Inquiry about the B share repurchase
Inquiry about the Company's future
24.08.18 Telephone communication Individual
development strategy
Inquiry about the Company's operation
04.09.18 Telephone communication Individual
condition
12.09.18 Telephone communication Individual Inquiry about project bidding
Inquiry about the second repurchase of B
18.09.18 Telephone communication Individual
shares
Inquiry about the Company's operation
26.09.18 Telephone communication Individual
condition in Q3
20.10.18 Telephone communication Individual Inquiry about the B share repurchase
12.11.18 Telephone communication Individual Opening of Fangda Town
05.12.18 Telephone communication Individual Inquiry about the B share repurchase
TIme 26
Number of institutes 0
Number of individuals 26
Number of other visitors 0
Disclosure of any non-public information No
39
方大集团股份有限公司 2018 年年度报告全文
Chapter V Significant Events
I. Profit distribution and reserve capitalization plan
Establishment, implementation or adjustment of profit distribution policies especially the cash dividend policy during the report
period
√ Applicable □ Inapplicable
During the report period, the Company implemented the profit distribution plan for 2017. Approved at the Shareholders' Meeting
2017 held on 15.05.18, the Company's profit distribution plan for 2017 is distributing a cash dividend of RMB1.50 (tax-included) for
every ten shares to all the shareholders based on a total of 1,183,642,254 shares on 31.12.17. No bonus share was issued this year.
The plan was implemented on 06.06.18 (see the 2017 Share Equity Distribution Implementation Announce 2018-27).
Explanation of Cash Dividend Distribution Policies
Comply with the Articles of Association or resolution made at
Yes
the General Shareholders' Meeting
Clear and definite distribution standard and proportion Yes
Decision-making procedure and mechanism Yes
Independent directors fulfill their duties Yes
Middle and small shareholders express their opinions and claims.
Yes
There rights are well protected.
Cash dividend distribution policies are adjusted or revised
Inapplicable
according to law
Profit distribution and reserve capitalizing pre-plans or plans over the recent three years (including the reporting period)
2016: A cash dividend of RMB3.50 (including tax) for each ten shares is issued to all shareholders on the basis of 789,094,836
shares with a total amount of RMB 276,183,192.60, on 31.12.16. Five shares were issued for every ten shares to all shareholders
through capitalization of capital reserve. No dividend share was issued.
2017: A cash dividend of RMB1.50 (including tax) for each ten shares is issued to all shareholders on the basis of 1,183,642,254
shares with a total amount of RMB 177,546,338.10, on 31.12.17.
40
方大集团股份有限公司 2018 年年度报告全文
No dividend share or capitalization share was issued in the year.
2018: The Company plans to distribute a cash dividend of RMB2.00 (including tax) for each ten shares issued to all shareholders on
the basis of 1,123,384,189 shares with a total amount of RMB 224,676,837.8 upon the cancellation of the B shares repurchased as of
January 11, 2019.
41
方大集团股份有限公司 2018 年年度报告全文
No dividend share or capitalization share was issued in the year.
Distribution of cash dividend over the recent three years (including this period)
In RMB
Net profit Proportion in the net
attributable to project attributable Proportion of cash
Cash dividend Cash dividend paid
Year shareholders in the to shareholders in dividend paid in
(including tax) in other manners
consolidated the consolidated other manners
financial statements financial statements
2018 335,842,891.28 2,246,164,571.68 14.95% 111,166,053.48 33.10%
2017 177,546,338.10 1,144,404,441.03 15.51% 0.00 0.00%
2016 276,183,192.60 697,956,378.23 39.57% 0.00 0.00%
Cash dividend proposed despite the Company records profits in the report period and a positive undistributed profit/
□ Applicable √ Inapplicable
Note: In the above table the "Cash Dividend (including tax)" of RMB 335,842,891.28 in 2018 is the sum of the amount of
RMB224,676,837.8 for the discovery of the bonus in 2018 and the repurchase amount of the B shares repurchased in 2018; "Cash
dividend paid in other manners" of RMB 111,166,053.48 is the amount of B shares repurchased by the Company in 2018.
II. Profit Distribution and Reserve Capitalization Plan in the Report Period
√ Applicable □ Inapplicable
Bonus shares for every ten shares 0
Cash dividend for every ten shares (yuan,
2.00
tax-included)
Shares capitalized for every 10 shares 0
A total number of shares as the distribution basis 1,123,384,189
Total cash dividend (yuan, including tax) 224,676,837.80
Distributable profit (yuan) 504,081,999.00
Proportion of cash dividend in the distributable
100%
profit
Cash dividend
The Company is in a fast growth stage. Therefore, the cash dividend will reach 20% of the profit distribution at least.
Details of profit distribution or reserve capitalization plan
The Company plans to distribute a cash dividend of RMB2.00 (including tax) for each ten shares is issued to all shareholders on the
basis of 1,123,384,189 shares with a total amount of RMB 224,676,837.8. No dividend share or capitalization share was issued in
the year.
42
方大集团股份有限公司 2018 年年度报告全文
III. Performance of promises
1. 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
2. Explanation and reason of profit forecasts on assets or projects that remain in the report period
□ Applicable √ Inapplicable
IV. 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.
V. Statement of the Board of Directors, Supervisory Committee and Independent Directors (if
applicable) on the “non-standard auditors’ report” issued by the CPA on the current report
period
□ Applicable √ Inapplicable
VI. Statement of changes to accounting policies, estimates and audit methods compared with
the financial report of the previous year
√ Applicable □ Inapplicable
According to the Notice of the Ministry of Finance on Revising the Format of the 2018 Annual General Financial Statements of the
Company (Accounting 2018 No. 15) the original "Announceable Notes" and "Accounts Receivable" line items will be consolidated
into the "balance sheet" in the balance sheet. "Notes receivable and accounts receivable"; the original "receivable interest" and
"dividends receivable" items are merged into "other receivables"; the original "fixed assets clean-up" items are merged into "fixed
assets"; the original "engineering material" item will be merged into "construction in progress"; the original "payable bills" and
"payables" items will be consolidated into "payable bills payables and accounts payable" items; the original "payable interest" and
"payable dividend" will be merged into "other receivables"; the original "special payables" item is merged into "long-term payables".
In the income statement the "R&D expenses" are separated from the original "administrative expenses"; under the "finance expenses"
line item the "interest expense" and "interest income" detailed items are separately listed; the original "re-measurement setting
benefits" The change of the plan net debt or net assets is replaced by the "re-measurement of the change in the defined benefit plan";
the original "share under the equity method that cannot be reclassified into other comprehensive income of the investee and the profit
and loss" is changed to "equity". Other comprehensive income that cannot be transferred to profit or loss under the law"; the original
share of the other comprehensive income that is reclassified into profit or loss after the investee is changed to the other
comprehensive income of the convertible profit and loss under the equity method. In the statement of changes in owner's equity
under the "internal transfer of shareholders' equity", item the original "transfer re-measurement of changes in net liabilities or net
assets of defined benefit plans" was changed to "transfer of retained profit from change in set benefit program".
43
方大集团股份有限公司 2018 年年度报告全文
The revision of the financial statement format has no impact on the Group's total assets total liabilities, net profit and other
comprehensive income.
VII. Statement of retrospective restatement of major accounting errors in the report period
□ Applicable √ Inapplicable
No retrospective restatement of major accounting errors in the report period
VIII. Statement of change in the financial statement consolidation scope compared with the
previous financial report
√ Applicable □ Inapplicable
1. In the current period, Shanghai Fangda Jingling Technology Co. Ltd. and Shenzhen Fangda Cloud Rail Technology Co.
Ltd. have been newly established two new companies in the current consolidated statement.
2. In this period, the indirect controlled subsidiary Fangda Decoration Engineering (Shenyang) Co. Ltd. was liquidated. Therefore,
one subsidiary is removed from the consolidated statement of this period.
IX. Engaging and dismissing of CPA
CPA engaged currently
Domestic public accountants name Grant Thornton (limited liability partnership)
Remuneration for the domestic public accountants (in
150
RMB10,000)
Consecutive years of service by the domestic public accountants 7
Name of certified accountants of the domestic public accountants Chen Zhaoxin, Zeng Hui
Chen Zhaoxin has provided the audit service for 2 years Zenghui
Consecutive years of service by the domestic public accountants
for 1 year
Overseas public accountants name (if any) None
Remuneration for the overseas public accountants (in
0
RMB10,000)
Consecutive years of service by the overseas public accountants
None
(if any)
Name of certified accountants of the overseas public accountants
None
(if any)
Consecutive years of service by the domestic public accountants None
Whether the CPA is replaced
□ Yes √ No
Engaging of internal control audit CPA, financial advisor and sponsor
√ Applicable □ Inapplicable
44
方大集团股份有限公司 2018 年年度报告全文
This year, the Company engaged Grand Thornton China (limited liability partnership) as the financial statement and internal control
auditing CPA with a fee of RMB1.5 million.
X. Trade suspension and termination after the disclose of the annual report
□ Applicable √ Inapplicable
XI. Bankruptcy and capital reorganizing
□ Applicable √ Inapplicable
The Company has no bankruptcy or reorganization events in the report period.
XII. Significant lawsuit and arbitration
□ Applicable √ Inapplicable
The Company has no significant lawsuit or arbitration affair in the report period.
XIII. Punishment and rectification
□ Applicable √ Inapplicable
The Company received no penalty and made no correction in the report period.
XIV. Credibility of the Company, controlling shareholder and actual controller
□ Applicable √ Inapplicable
XV. 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
XVI. 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.
45
方大集团股份有限公司 2018 年年度报告全文
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. Other major related transactions
□ Applicable √ Inapplicable
The Company has no other significant related transaction in the report period.
XVII. 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
Leasing
The investment real estate is used as external leasing. The rental income in the report period is RMB24,693,767.83.
Projects that create gains accounting for over 10% of the Company’s total profit in the report period
□ Applicable √ Inapplicable
The Company leased no projects that create gains accounting for over 10% of the Company’s total profit in the report period.
2. Significant guarantee
√ Applicable □ Inapplicable
46
方大集团股份有限公司 2018 年年度报告全文
(1) Guarantee
In RMB10,000
External guarantees made by the Company and subsidiaries (exclude those made for subsidiaries)
Actual
Date of Guarantee Type of Complete Related
Guarantee provided to Actual date amount of Term
disclosure amount guarantee d or not party
guarantee
Guarantee provided to subsidiaries
Actual
Date of Guarantee Type of Complete Related
Guarantee provided to Actual date amount of Term
disclosure amount guarantee d or not party
guarantee
since engage
of contract to
FangdaJianke 24.04.18 28.08.18 Joint liability No Yes
30,000.00 15,771.74 2 years upon
due of debt
since engage
of contract to
FangdaJianke 21.03.17 06.12.17 Joint liability No Yes
40,000.00 19,738.37 2 years upon
due of debt
since engage
of contract to
FangdaJianke 21.03.17 01.11.17 Joint liability No Yes
40,000.00 2,521.05 2 years upon
due of debt
since engage
of contract to
FangdaJianke 21.03.17 10.04.18 Joint liability No Yes
20,000.00 49,793.76 2 years upon
due of debt
since engage
of contract to
FangdaJianke 24.04.18 13.07.18 Joint liability No Yes
9,000.00 6,288.00 2 years upon
due of debt
since engage
of contract to
FangdaJianke 24.04.18 12.06.18 Joint liability No Yes
10,000.00 5,371.94 2 years upon
due of debt
since engage
of contract to
FangdaZhichuang 24.04.18 06.08.18 Joint liability No Yes
21,600.00 26,059.98 2 years upon
due of debt
since engage
FangdaZhichuang 21.03.17 08.03.18 Joint liability No Yes
15,000.00 3,852.74 of contract to
47
方大集团股份有限公司 2018 年年度报告全文
2 years upon
due of debt
since engage
of contract to
Fangda New Material 24.04.18 01.06.18 Joint liability No Yes
8,000.00 4,543.85 2 years upon
due of debt
since engage
of contract to
Fangda New Material 24.04.18 01.06.18 Joint liability No Yes
6,500.00 306.02 2 years upon
due of debt
since engage
of contract to
Fangda Property 23.03.13 03.02.15 Joint liability No Yes
130,000.00 89,397.82 2 years upon
due of debt
since engage
of contract to
The Company 21.03.17 60,000.00 22.02.18 Joint liability No Yes
- 2 years upon
due of debt
since engage
of contract to
The Company 21.03.17 29.09.18 Joint liability No Yes
25,000.00 20,000.00 2 years upon
due of debt
Total of guarantee to
Total of guarantee to subsidiaries subsidiaries actually
415,100 141,011.56
approved in the report term (B1) occurred in the report term
(B2)
Total of balance of
Total of guarantee to subsidiaries guarantee actually provided
415,100 243,645.27
approved as of the report term (B3) to the subsidiaries as of end
of report term (B4)
Guarantee provided to subsidiaries
Actual
Date of Guarantee Type of Complete Related
Guarantee provided to Actual date amount of Term
disclosure amount guarantee d or not party
guarantee
Total of guarantee provided by the Company (total of the above three)
Total of guarantee occurred
Total of guarantee approved in the
415,100 in the report term 141,011.56
report term (A1+B1+C1)
(A2+B2+C2)
Total of guarantee approved as of 415,100 Total of guarantee occurred 243,645.27
48
方大集团股份有限公司 2018 年年度报告全文
end of report term (A3+B3+C3) as of the end of report term
(A4+B4+C4)
Percentage of the total guarantee occurred (A4+B4+C4) on net
46.90%
asset of the Company
Including:
Note of immature guarantee with guarantee liabilities or possible
None
joint damage liabilities in the report period
Statement of external guarantees violating the procedure (if any) None
Note of compound guarantee
(2) Incompliant external guarantee
□ Applicable √ Inapplicable
The Company made no incompliant external guarantee in the report period.
3. Entrusted cash capital management
(1) Wealth management
√ Applicable □ Inapplicable
Wealth management during the reporting period
In RMB10,000
Due balance to be
Type Source of fund Amount Undue balance
recovered
Bank financial products Self-owned fund 83,200 0 0
Specific circumstances of high-risk entrusted financing with large individual amount or low security, poor liquidity, and no cost
protection
□ Applicable √ Inapplicable
Entrusted financial management expected to fail to recover the principal or likely result in impairment
□ Applicable √ Inapplicable
(2) Trusted loans
□ Applicable √ Inapplicable
The Company borrowed no trust loan in the report period.
4. Other significant contract
□ Applicable √ Inapplicable
The Company entered into no other significant contract in the report.
49
方大集团股份有限公司 2018 年年度报告全文
XVI Social responsibilities
1. Fulfillment of social responsibilities
The Company has disclosed the "2018 Social Responsibility Report", the details of which are published on the website of
http//www.cninfo.com.cn on January 30 2019.
2. Performance of poverty relieving responsibilities
(1) Annual poverty relieving summary
In 2018, the Company used funds for precision poverty alleviation projects of RMB1,936,000 as follows:
(1) In order to improve the conditions for schools in rural areas and improve the education level in poverty-stricken areas, in
October 2018, the Company signed a donation of 1.2 million yuan for the expansion and repair of the Fangda Hope Primary School
in Lianyu Town, Xinjian District, Nanchang, which was originally donated by the Company. The preparation phase is expected to be
completed in the first half of 2019.
(2) In order to help the Lianhua County of Pingxiang City Jiangxi Province to achieve poverty alleviation, the Company plans
to donate 1 million yuan to the Pingxiang City Charity Association to develop the lily industry.RMB500,000 was donated in July
2018, with another RMB500,000 to be donated in 2019.
(3) In order to help the poor areas get rid of poverty, the Company invested 150,000 yuan to build a solar photovoltaic poverty
alleviation power station in the Dongshui Village Committee of Xishan Town, Lianping County, Heyuan City, Guangdong Province
and passed the grid inspection and acceptance and delivered it in July 2018.
(4) In order to help the Jinggangshan Revolutionary Old District to alleviate poverty, the Company purchased 56,000 yuan
worth of agricultural products in November 2018.
(5) The Company donated RMB30,000 to two students in Long Village, Shahe Town, Zhanggong District, Ganzhou City,
Jiangxi Province.
(2) Result of targeted poverty alleviation
Item Unit Qty/Description
1. General situation —— ——
Including: 1. Fund (in RMB10,000) 193.6
II. Investment —— ——
1. Industry development poverty relief —— ——
Including: 1.1 Industry development
—— Rural and forestry industry poverty allivetion
projects
1.2 Number of industry
Item 1
development projects
1.3 Amount of industry
(in RMB10,000) 50
development fund
2. Employment transfer —— ——
3. Relocation —— ——
50
方大集团股份有限公司 2018 年年度报告全文
4. Education —— ——
Including: 4.1 Sponsor to students from
(in RMB10,000) 3
poor families
4.2 Number of students Person 2
4.3 Education investment in poor
(in RMB10,000) 120
areas
5. Health care support —— ——
6. Eco-protection support —— ——
7. Last-line guarantee —— ——
8. Social poverty relieving —— ——
8.2 Targeted poverty alleviation
(in RMB10,000) 20.6
investment amount
9. Others —— ——
III. Prizes —— ——
(3) Further property relief plans
The Company will continue to fulfill its social responsibility for precision poverty alleviation, and make donations from time to time
based on business development.
3. Environmental protection
Whether the Company and its subsidiaries are key polluting companies disclosed by the environmental protection authority
No
The Company and its subsidiaries have earnestly implemented the Environmental Protection Law of the People's Republic of China,
the Law of the People's Republic of China on Water Pollution Prevention and Control, the Law of the People's Republic of China on
the Prevention and Control of Air Pollution, and the Law of the People's Republic of China on the Prevention and Control of Solid
Waste Pollution. In the environmental protection laws and regulations, there were no penalties for violations of laws and regulations
during the reporting period.
XIX. Other material events
√ Applicable □ Inapplicable
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.6 – Listed Companies Engaged in Decoration Business.
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.6 – Listed Companies Engaged in Decoration Business.
Qualifications in the decoration industry:
No. Qualification Effectiveness
1 Construction curtain wall designing class A By April 16, 2020
51
方大集团股份有限公司 2018 年年度报告全文
2 Construction curtain wall contracting class A By 03.02.21
3 Construction decoration contracting class B By 04.03.21
4 Steel structure engineering contracting class B By 04.03.21
5 Construction mechanical and electric equipment By 04.03.21
installation contracting class C
6 City and road lighting engineering contracting class C By 04.03.21
In the report period, the Company’s safety management is normal. The Company pays large attention to employees’ safety
awareness and capabilities of emergency processing. The Company has strengthened safety production and investigation of safety
risks. The Company has formulated safety management guidelines to guide safety management. There was no significant safety
accidents in the report period.
XX. Material events of subsidiaries
□ Applicable √ Inapplicable
52
方大集团股份有限公司 2018 年年度报告全文
Chapter VI Changes in Share Capital and Shareholders
I. Changes in shares
1. Changes in shares
In share
Before the change Change (+,-) After the change
Bon
Issued Transfer
us
Amount Proportion new red from Others Subtotal Amount Proportion
shar
shares reserves
es
I. Shares with trade
1,417,243 0.12% 14,325 14,325 1,431,568 0.13%
restriction conditions
3. Other domestic shares 1,417,243 0.12% 14,325 14,325 1,431,568 0.13%
Domestic natural
1,417,243 0.12% 14,325 14,325 1,431,568 0.13%
person shares
II. Shares without trading
1,182,225,011 99.88% -60,272,390 -60,272,390 1,121,952,621 99.87%
limited conditions
1. Common shares in
678,298,229 57.31% -14,325 -14,325 678,283,904 60.38%
RMB
2. Foreign shares in
503,926,782 42.57% -60,258,065 -60,258,065 443,668,717 39.49%
domestic market
III. Total of capital shares 1,183,642,254 100.00% -60,258,065 -60,258,065 1,123,384,189 100.00%
Reasons
√ Applicable □ Inapplicable
1. The quantity and proportion of "after this change" in the above table are the data of the Company's repurchase of 60,258,065 B
shares as of January 11 2019 and cancelled (the latest data before the disclosure of this report).In 2018, the Company reviewed and
approved two cases of repurchasing B shares. As of the disclosure date of this report, the Company has repurchased 60,258,065 B
shares of which 33,902,665 shares were repurchased in 2018 and 26,355,400 shares were repurchased in 2019. For details please,
refer to the "Announcement on the Completion of the Cancellation of Repurchased Shares" disclosed by the company on August 31
2018 and January 15 2019.
2. Mr. Yin Changjian, the former employee representative supervisor of the Company applied for resignation. On December 28 2018,
Mr. Ye Zhiqing was elected as the employee representative supervisor of the 8th Supervisory Committee of the Company by the
Company's employee meeting. He held 19,100 shares of the Company's A shares, of which 14,325 shares are subject to sales
restriction.
Approval of the change
√ Applicable □ Inapplicable
53
方大集团股份有限公司 2018 年年度报告全文
1. In 2018 the Company implemented two repurchase approvals for B shares:
(1) First repurchase in 2018: The Company reviewed and approved the Resolution on the Repurchase of Domestically Listed Foreign
Shares (B Shares) of the Company at the 8th meeting of the 8th Board of Directors and the 2017 Annual General Meeting of
Shareholders on April 24 2018 and May 15 2018 respectively.
(2) Sescond repurchase: The Company reviewed and approved the Resolution on the Repurchase of Domestically Listed Foreign
Shares (B Shares) of the Company at the 10th meeting of the 8th Board of Directors and the first extraordinary shareholders' meeting
in 2018 held on September 10, 2018 and September 27, 2018 respectively.
2. On December 28 2018, Mr. Ye Zhiqing was elected as the employee representative supervisor of the 8th Supervisory Committee
of the Company by the company's staff meeting.
Share transfer
√ Applicable □ Inapplicable
1. The cancellation of the shares of B shares purchased twice
(1) From August 13, 2018 to August 16, 2018, the Company repurchased 28,160,568 shares of B shares through centralized bidding,
and completed the above at China Securities Depository and Clearing Co., Ltd. Shenzhen Branch on August 29, 2018. share
repurchase and cancellation procedures.
(2) From 19.12.18 to 03.01.19, the Company repurchased 32,097,497 shares of B shares through centralized bidding, and completed
the above at China Securities Depository and Clearing Co., Ltd. Shenzhen Branch on 11.01.19. share repurchase and cancellation
procedures.
2. On December 28 2018, Mr. Ye Zhiqing was elected as the employee representative supervisor of the 8th Supervisory Committee
of the Company by the Company's employee meeting. He held 19,100 shares of the Company's A shares, of which 14,325 shares are
subject to sales restriction.
Progress in the implementation of share repurchase
√ Applicable □ Inapplicable
In 2018 the Company implemented two repurchase of B shares, the specific implementation is as follows:
Highest
Number of Lowest price Date of
Repurchase Period Fund used price
shares (HKD/share) cancellation
(HKD/share)
13.08.18 to
First 28,160,568 114,478,923.89 4.22 3.95 29.08.18
16.08.18
December 19, 2018
5,742,097 19,488,199.08
to 31.12.18
Second 3.58 3.24 11.01.19
02.01.19 to January
26,355,400 93,524,433.13
3, 2019
Total 60,258,065 227,491,556.10
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
54
方大集团股份有限公司 2018 年年度报告全文
□ Applicable √ Inapplicable
2. Changes in conditional shares
√Applicable □Inapplicable
Conditional
Conditional
shares at Released this Increased this Reason of
Shareholder shares at end of Date of releasing
beginning of the period period condition
the period
period
Newly elected as 25% of the
an employee annual
Ye Zhiqing 0 0 14,325 14,325 representative in shareholding is
the reporting released from the
period sale
Total 0 0 14,325 14,325 -- --
II. Share placing and listing
1. Securities issuance (excluding preference shares) during the report period
□ Applicable √ Inapplicable
2. Statement of changes in share number and shareholder structure, assets and liabilities structure
√ Applicable □ Inapplicable
1. As a result of the repurchase of B shares in the 2018, the company repurchased B shares and cancelled 60,258,065 shares as of the
disclosure date of this report. The total share capital decreased from 1,183,642,254 shares to 1,123,384,189 shares.
2. During the reporting period, Mr. Ye Zhiqing the newly elected employee representative supervisor held 19100 A shares of the
Company of which 75% were restricted shares resulting in an increase of 14,325 shares in the company.
3. Current employees’ shares
□ Applicable √ Inapplicable
III. Shareholders and the substantial controller of the Company
1. Shareholders and shareholding
In share
Number of Total number of Number of Total number of
shareholders of 62,746 ordinary share 62,746 shareholders of None shareholders of None
common shares shareholders at preferred stocks of preference shares
55
方大集团股份有限公司 2018 年年度报告全文
at the end of the end of the which voting rights of which voting
the report month before the recovered in the rights resumed at
period disclosure date of report period (if the end of the
the annual report any) month before the
disclosure date of
the annual report
Shareholders holding 5% of the Company's shares or top-10 shareholders
Number of Pledging or freezing
Sharehol Amount of
shares held at Change in the
Nature of ding Condition shares without
Shareholder the end of the reporting Share
shareholder percenta al shares sales Amount
reporting period status
ge restriction
period
Shenzhen Banglin
Domestic
Technologies
non-state 10.08% 113,202,154 10,040,745 0 113,202,154 Pledged 37,559,997
Development Co.,
legal person
Ltd.
Shengjiu Foreign legal
8.36% 93,875,638 3,177,756 0 93,875,638
Investment Ltd. person
Domestic
Fang Wei 3.08% 34,611,453 34,611,453 0 34,611,453
natural person
Gong Qing Cheng
Shi Li He
Investment Domestic
Management non-state 2.38% 26,791,488 0 0 26,791,488
Partnership legal person
Enterprise (limited
partner)
ShenwanHongyuan
Foreign legal
Securities (Hong 1.77% 19,879,147 3,580,710 0 19,879,147
person
Kong) Co., Ltd.
GUOTAI JUNAN
SECURITIES(HO Foreign legal
1.30% 14,550,605 -33,973,622 0 14,550,605
NGKONG) person
LIMITED
SUN HUNG KAI
Foreign legal
INVESTMENT 0.91% 10,169,002 10,169,002 0 10,169,002
person
SERVICES LTD
VANGUARD
EMERGING Foreign legal
0.71% 7,946,483 0 0 7,946,483
MARKETS person
STOCK INDEX
56
方大集团股份有限公司 2018 年年度报告全文
FUND
Domestic
Jiang Jing 0.58% 6,525,441 -735,000 0 6,525,441
natural person
VANGUARD
TOTAL
Foreign legal
INTERNATIONA 0.54% 6,025,958 1,150,300 0 6,025,958
person
L STOCK INDEX
FUND
A strategic investor or ordinary
legal person becomes the Top10 None
shareholder due a stock issue.
Among the shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu
Investment Co., Ltd. are parties action-in-concert. Shenzhen Banglin Technology Development
Notes to top ten shareholder
Co., Ltd. and Gong Qing Cheng Shi Li He Investment Management Partnership Enterprise are
relationship or "action in concert"
related parties. The Company is not notified of other action-in-concert or related parties among
the other holders of current shares.
Top 10 holders of unconditional shares
Category of shares
Shareholder Amount of shares without sales restriction Category of
Amount
shares
Shenzhen Banglin Technologies RMB common
113,202,154 113,202,154
Development Co., Ltd. shares
Foreign shares
Shengjiu Investment Ltd. 93,875,638 listed in domestic 93,875,638
exchanges
RMB common
Fang Wei 34,611,453 34,611,453
shares
Gong Qing Cheng Shi Li He
RMB common
Investment Management Partnership 26,791,488 26,791,488
shares
Enterprise (limited partner)
Foreign shares
ShenwanHongyuan Securities (Hong
19,879,147 listed in domestic 19,879,147
Kong) Co., Ltd.
exchanges
GUOTAI JUNAN Foreign shares
SECURITIES(HONGKONG) 14,550,605 listed in domestic 14,550,605
LIMITED exchanges
Foreign shares
SUN HUNG KAI INVESTMENT
10,169,002 listed in domestic 10,169,002
SERVICES LTD
exchanges
VANGUARD EMERGING 7,946,483 Foreign shares 7,946,483
57
方大集团股份有限公司 2018 年年度报告全文
MARKETS STOCK INDEX FUND listed in domestic
exchanges
RMB common
Jiang Jing 6,525,441 6,525,441
shares
VANGUARD TOTAL Foreign shares
INTERNATIONAL STOCK INDEX 6,025,958 listed in domestic 6,025,958
FUND exchanges
No action-in-concert or related parties Among the shareholders, Shenzhen Banglin Technology Development Co., Ltd. and
among the top10 unconditional Shengjiu Investment Co., Ltd. are parties action-in-concert. Shenzhen Banglin Technology
shareholders and between the top10 Development Co., Ltd. and Gong Qing Cheng Shi Li He Investment Management
unconditional shareholders and the Partnership Enterprise are related parties. The Company is not notified of other
top10 shareholders action-in-concert or related parties among the other holders of current shares.
Top-10 common share shareholders Jiang Jing holds 6,525,441 stocks of the Company through the Everbright Securities
participating in margin trade (if any) customer credit transaction guarantee securities account.
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
Note: The "shareholding ratio" in the above table is calculated based on the total share capital of 1,123,384,189 shares after the
cancellation of the repurchased B shares on January 11, 2019.
2. Profile of the controlling shareholders
Shareholder nature: natural person holding
Type of shareholder: legal person
Legal
Name of controlling shareholder representative/resp Date of establishment Organization code Main business
onsible person
Industrial investment,
developing of electronic
Shenzhen Banglin Technologies
Chen Jinwu 07.06.01 914403007298400552 products, technical
Development Co., Ltd.
consulting, domestic
commerce, material trading
Changes in the controlling shareholder in the reporting period
□ Applicable √ Inapplicable
No change in the controlling shareholder in the report period
3. Actual controller and persons acting in concert
Nature of actual controller: domestic natural person
58
方大集团股份有限公司 2018 年年度报告全文
Type of actual controller: natural person
Relationship with the
Name of substantial controller Nationality Right of residence in another country or region
actual controller
XiongJianming Himself Chinese No
Job and position Chairman of the Board and president of the Company over the past 5 years
Profiles of domestic and overseas
listed companies in which the The controller held no share in other listed companies in the last ten years.
controller held shares
Change in the actual controller in the report period
□ Applicable √ Inapplicable
No change in the actual shareholder in the report period
7. Chart of the controlling relationship
Controlling over the Company by the substantial controller through trust or other asset management
□ Applicable √ Inapplicable
4. Other legal person shareholders with over 10% of total shares
□ Applicable √ Inapplicable
5. Conditional decrease of shareholding by controlling shareholder, actual controller, reorganizer and
other entities
□ Applicable √ Inapplicable
59
方大集团股份有限公司 2018 年年度报告全文
Chapter VII Preferred Shares
□ Applicable √ Inapplicable
The Company had no preferred share in the report period.
60
方大集团股份有限公司 2018 年年度报告全文
Chapter VIII Particulars about the Directors, Supervisors, Senior
Management and Employees
I. Changes in shareholding of Directors, Supervisors and Senior Management
Number of Decrea
Other
shares Increased sed Number of
increase
Job Starting date End date held at shares in shares shares held at
Name Position Sex Age and
status of the term of the term beginning this period in this end of the
decrease
of the (share) period period
(share)
period (share)
Chairman
XiongJian
, In office M 61 20.11.95 11.04.20 1,889,657 1,889,657
ming
president
Lin Kebin Director In office M 41 11.04.17 11.04.20
Vice
Lin Kebin In office M 41 06.06.08 11.04.20
president
Zhou
Director In office M 56 09.04.07 11.04.20
Zhigang
Zhou Vice
In office M 56 11.04.17 11.04.20
Zhigang president
Secretary
Zhou
of the In office M 56 22.10.03 11.04.20
Zhigang
Board
XiongJian
Director In office M 50 16.04.99 11.04.20
wei
Independ
Guo
ent In office M 53 31.03.14 11.04.20
Wanda
director
Independ
Deng Lei ent In office M 40 16.02.16 11.04.20
director
Independ
GuoJinlo
ent In office M 57 11.04.17 11.04.20
ng
director
Dong Superviso
In office M 40 28.12.18 11.04.20
Gelin ry
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方大集团股份有限公司 2018 年年度报告全文
Committe
e meeting
convener
Dong Superviso
In office M 40 11.04.17 11.04.20
Gelin r
Superviso
Cao Naisi In office F 40 11.04.17 11.04.20
r
Ye Superviso
In office M 44 28.12.18 11.04.20 19,100 19,100
Zhiqing r
Wei Vice
In office M 50 29.07.11 11.04.20
Yuexing president
Superviso
ry
Yin Resigne
Committe M 50 31.03.14 28.12.18
Changjian d
e meeting
convener
Total -- -- -- -- -- -- 1,889,657 0 0 19,100 1,908,757
II. Changes in the Directors, Supervisors and Senior Executives
√ Applicable □ Inapplicable
Name Job Type Date Reason
Supervisory
Committee
Yin Changjian Resigned 28.12.18 Resigned due to personal reason
meeting
convener
III. Office Description
Professional background, work experience and main duties in the Company of existing directors, supervisors and senior
management
1. Mr. XiongJianming: PHD Management; senior engineer; part-time professor of Beijing Institute of Civil Engineering and
Architecture and Nanchang University. He was once employed by Jiangxi Provincial Machinery Design Academe, Administration
Bureau of Shekou District of Shenzhen government, etc, deputy to the 10th People’s Congress of Guangdong Province, deputy to the
2nd and 3rd People’s Congress of Shenzhen City. He is now the chairman and CEO of the Company, representative of the 13 th
National People's Congress and the 6th Shenzhen People's Congress, president of the Shenzhen Semi-conductor Lighting Industry
Promotion Association, chairman of Shenzhen Jiangxi Commerce Chamber, chairman of Shenzhen Nanshan District Industry and
Commerce Association and honorary chairman of Shenzhen Nanshan District Charity.
2. Mr. Lin Kebin holds a bachelor’s degree. He was once the CFO of the Company and is currently a director and vice president of
the Company.
3. Mr. XiongJianwei: MBA. He is a director of the Company, Chairman of the Board of Director of FangdaJianke and a member of
the 14th Nanchang CPPCC Standing Committee.
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方大集团股份有限公司 2018 年年度报告全文
4. Mr. Zhou Zhigang, bachelor’s degree. He is currently a director, vice president, Secretary of Board, and head of the Securities
Dept of the Company.
5. Mr. Guo Wanda: He is an Economics Ph. D and researcher. As the executive deputy president of China Development Institute, he
has studied in macro-economy, industry policies and enterprise development strategies for years and provided consulting services. He
is an independent director of the Company.
6. Mr. Deng Lei is a law Ph. D and post-doctor in the financial securities law of Shenzhen Stock Exchange. He was once the vice
director of Corporate Law Affair Commission of Shenzhen Lawyer Association and a senior partner of Guangdong China
Commercial Law Firm. He is an independent director of the Company.
7. Mr. GuoJinlong: Master, Certified Public Accountant of China. He was a member of the fifth session of the CPPCC of Shenzhen
City. He is currently the deputy to the sixth session of the People's Congress of Shenzhen, vice chairman of Guangdong Certified
Public Accountants Association, partner of ShineWing Certified Public Account, and an independent director of the Company.
8. Mr. Dong Gelin: Bachelor degree, senior engineer, former designer of FangdaJianke, chief engineer of the design institute,
assistant to general manager, general manager of FangdaJianke Beijing Branch, currently he is currently the director of the
Company's Development Planning Department, the director of Enterprise Management, the director of Technology Innovation and
the convener of the Board of Supervisors.
9. Ms. Cao Naisi: Bachelor's degree, intermediate economist, former securities affairs representative of the company, supervisor of
the sixth session of the Supervisory Committee, director of audit supervision department, deputy director of human resources
department, general manager of FangdaJianke Beijing branch, FangdaJianke South China General Manager of the branch, currently
Deputy General Manager of FangdaJianke, and supervisor of the Company.
10. Mr. Ye Zhiqing holds a Bachelor degree and is a senior engineer. He is currently the deputy director of the company's corporate
management department, the general manager of FangdaJianke's Shanghai branch and the company's supervisor.
11. Mr. Wei Yuexing holds a Bachelor degree and is a senior engineer. He is the vice president of the Company and general manager
of FangdaJianke.
Offices held at shareholders entitie
√ Applicable □ Inapplicable
Whether any
Starting date of End date of remuneration is
Name Shareholder entity Office
the term the term paid at the
shareholder entity
XiongJianming Shengjiu Investment Ltd. Chairman 06.10.11 No
Gong Qing Cheng Shi Li He Investment
Executive
Wei Yuexing Management Partnership Enterprise (limited 20.12.16 No
partner
partner)
Office
None
description
Offices held at other entities
√ Applicable □ Inapplicable
Whether any
Starting date of End date of the remuneration is
Name Entity name Office
the term term paid at the
shareholder entity
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方大集团股份有限公司 2018 年年度报告全文
General development research institute Standing vice
Guo Wanda 01.07.07 Yes
(Shenzhen, China) president
Shenzhen Baode Technology Group Co., Independent
Guo Wanda 06.06.08 Yes
Ltd. director
Independent
Guo Wanda Hercules Logistics 01.11.13 Yes
director
Shenzhen Aotexun Power Equipment Co. Independent
Guo Wanda 27.03.17 Yes
Ltd. director
Deng Lei Guangdong China Commercial Law Firm Senior partner 01.11.15 Yes
Independent
Deng Lei Wuhan Gaode Infrared Co., Ltd. 23.04.15 Yes
director
Independent
Deng Lei Shenzhen Haimingrun Industrial Co., Ltd. 18.11.14 Yes
director
Independent
Deng Lei Shenzhen Huaqiang Industrial Co. Ltd. 13.04.18 Yes
director
ShineWing Certified Public Accountants
GuoJinlong Partner 01.07.06 Yes
(limited liability partnership)
Office
The above-mentioned three are independent directors of the Company.
description
Penalties given by existing securities regulators on directors, supervisors and senior management and those who have resigned in the
report period
√ Applicable □ Inapplicable
According to the "China Securities Regulatory Commission's Administrative Punishment Decision" (2017) No. 101 of December
6, 2017, ShineWing Certified Public Account (Special General Partnership) (hereinafter referred to as ShineWing) had the following
illegal facts:
1. ShineWing violated business rules established legally during the preparation of the IPO (three-year and one period) and the
2014 annual report of HuaijiDengyun Auto Parts Co., Ltd.
2. ShineWing did not diligently perform their duties and had false records of the audit report issued by HuaijiDengyun shares in
the 2013 annual report.
The signed certified public accountant and Mr. GuoJinlong, an independent director of the Company that issued the audit report,
were given warnings and a fine of RMB50,000 yuan.
IV. Remunerations of the Directors, Supervisors and Senior Executives
Decision making procedures, basis and actual payment of remunerations of the Directors, Supervisors and Senior Executives
1. Remuneration schemes for directors and supervisors are proposed by the Remuneration and Assessment Committee of the Board,
and implemented upon approval of the Board and the Shareholders’ Meetings; the remuneration schemes for executives are approved
and implemented by the Board.
Remuneration for directors and supervisors are decided by the shareholders’ meeting. Remunerations for executives are composed of
wages and performance bonus as decided by the Board.
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方大集团股份有限公司 2018 年年度报告全文
Payment on monthly basis
Remunerations of the Directors, Supervisors and Senior Executives of the Company During the reporting period
In RMB10,000
Remuneration
Total
Name Position Sex Age Job status from related
remuneration
parties
Chairman,
XiongJianming M 61 In office 222.62 No
president
Director, vice
Lin Kebin M 41 In office 95.44 No
president
Director, vice
president
Zhou Zhigang M 56 In office 71.57 No
secretary of the
Board
XiongJianwei Director M 50 In office 85.1 No
Independent
Guo Wanda M 53 In office 8 No
director
Independent
Deng Lei M 40 In office 8 No
director
Independent
GuoJinlong M 57 In office 8 No
director
Supervisory
Yin Changjian Committee M 50 Resigned 46.34 No
meeting convener
Cao Naisi Supervisor F 40 In office 46.89 No
Dong Gelin Supervisor M 40 In office 47.03 No
Wei Yuexing Vice president M 50 In office 82.6 No
Total -- -- -- -- 721.6 --
Equity incentive programs provided for the Directors, and Senior Executives of the Company during the reporting period
□ Applicable √ Inapplicable
5. Employees
1. Staff number, professional composition and education
Staff number of the parent 61
Staff number of major subsidiaries 1,705
Total staff number 2,206
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方大集团股份有限公司 2018 年年度报告全文
Number of employees receiving remuneration in the period 2,206
Resigned and retired staff number to whom the parent and major
0
subsidiaries need to pay remuneration
Professional composition
Categories of professions Number of people
Production 727
Sales & Marketing 71
Technicians 1,220
Finance & Accounting 60
Executive 128
Total 2,206
Education
Categories of education Number of people
High school or below 1,072
College diploma 426
Bachelor 688
Master’s degree 19
Doctor’s degree 1
Total 2,206
2. Remuneration policy
Staff remuneration policy: The Company’s staff remuneration comprises post wage, performance wage, allowance and annual
bonus. The Company has set up an economic responsibility assessment system according to the annual operation target and
responsibility indicators for all departments. The performance wage is determined by the economic indicators, management
indicators, optimization indicators and internal control. The annual bonus is determined by the Company's annual profit and
fulfillment of targets set for various departments. The staff remuneration and welfare will be adjusted according to the Company’s
business operation and changes in the local standard of living and price index.
3. Training program
Staff training plan: The Company has paid continuous attention to training and development of the staff and introduces
innovative learning as part of the long-term strategy. We provide training programs through different channels and in different fields
for different employees will help them fulfill their works, including new staff training, on-the-job training, operation and
management training programs. These programs have largely elevated capabilities of the staff and underpin the success of the
Company.
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方大集团股份有限公司 2018 年年度报告全文
4. Labor outsourcing
√ Applicable □ Inapplicable
Total number of hours of labor outsourcing 11,330,655.36
Total remuneration paid for labor outsourcing (RMB) 339,919,660.78
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方大集团股份有限公司 2018 年年度报告全文
Chapter IX Corporation Governance
1. Overview
During the report period, the Company strictly complied with the Company Law, Securities Law, Governance Standards for Listed
Companies, Shenzhen Stock Exchange Share Listing Rules, Operation Regulations for Listed Companies in the Main Board of
Shenzhen Stock Exchange, continued to improve the legal person governance structure and has formulated a series of internal
management systems covering various aspects. The Company has set up a comprehensive and effective internal control system in
important decision making, related transaction decision making, financial management, HR management, administration, purchase,
production and sales management, confidentiality and information disclosure.
Major difference between the actual corporate governance and regulations on corporate governance of listed companies issued by
CSRC
□ Yes √ No
There is no major difference between the actual corporate governance and regulations on corporate governance of listed companies
issued by CSRC.
2. Independence of the Company from the controlling shareholder in aspects of businesses,
personnel, assets, organizations, and accounting
In the aspect of business: the Company has its own purchasing, production, sales, and customer service system which performing
independently. There is not any material related transactions occurred with the controlling shareholders.
In personnel: The labor management, personnel and salary management are operated independently from the controlling
shareholder. The senior managements take salaries from the Company and none of them takes senior management position in the
controlling party.
In assets: The Company owns its production, supplementary production system and accessory equipments independently, and
possesses its own industrial properties, non-patent technologies, and trademark.
In organization: The production and business operation, executive management, and department setting are completely
independent from the controlling shareholder. No situation of combined office exists. The Company adjusts its organizing structure
only for its own practical requirement of development and management.
In accounting: The company has its own independent accounting and auditing division, established independent and completed
accounting system and management rules, has its own bank account, and exercise its liability of taxation independently.
3. Competition
□ Applicable √ Inapplicable
4. Annual and extraordinary shareholder meetings held during the report period
1. Annual shareholder meeting during the report period
Meeting Type Participation Date Date of disclosure Index for information disclosure
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方大集团股份有限公司 2018 年年度报告全文
of investors
2017 Annual Annual Notice on Resolutions of the Annual
Shareholder shareholders’ 19.68% 15.05.18 16.05.18 Shareholders’ Meeting (2017) released
Meeting meeting on www.cninfo.com.cn
1st Provisional Extraordinary Notice on Resolutions of the 1st
Shareholders’ shareholders’ 21.31% 27.09.18 28.09.18 Extraordinary Shareholders’ Meeting in
Meeting 2018 meeting 2018 (2018-46)
2. Shareholders of preference shares of which voting right resume convening an extraordinary
shareholders’ meeting
□ Applicable √ Inapplicable
V. Performance of independent directors during the report period
1. Independent directors’ presenting of board meetings and shareholders’ meetings in the report period
Independent directors’ presenting of board meetings and shareholders’ meetings in the report period
Time of board Number of Number of
Name of Number of Number of Absent for two
meetings Presented by board meetings shareholders'
independent board meetings board meetings consecutive
should have telecom attended by meetings
director attended not attended meetings
attended proxy attended
Guo Wanda 6 2 4 0 0 No 1
Deng Lei 6 2 4 0 0 No 2
GuoJinlong 6 2 4 0 0 No 1
Statement for absence for two consecutive board meetings
Inapplicable
2. Objection raised by independent directors
Any objection raised by independent directors against the Company’s related issues
□ Yes √ No
Independent directors made no objection on related issued of the Company in the report period.
3. Other statement for performance of independent directors
Adoption of suggestion proposed by independent directors
√ Yes □ No
Statement for suggestion adopted or not by the Company
During the reporting period, the Company’s independent directors strictly followed the relevant laws, regulations and the
―Articles of Association‖ and paid attention to the Company’s operations, attended the Company’s Board of Directors and
shareholders’ meeting, and all the independent directors carefully reviewed the various proposals of the Company’s Board of
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方大集团股份有限公司 2018 年年度报告全文
Directors and performed their duties conscientiously. The development decision has put forward constructive opinions or suggestions,
and has issued independent opinions on the improvement of the Company's system and major business management matters,
corporate guarantees, profit distribution, use of raised funds, etc. Independent directors have adopted the Company’s relevant
recommendations. It has played an active role in safeguarding the interests of the Company and small and medium shareholders.
VI. Performance of specific committees under the Board
(1) Performance of the Development Strategy Committee
During the report period, the Development Strategy Committee of the Company has performed its duties in accordance with the
Working Regulations for Development Strategy Committee and played its role in the decision-making process of the Company. Two
meetings were convened and details are disclosed as follows:
1. On 20.02.18, the Company held the 2nd meeting of the 8th Development Strategy Commission to listen to the report on
production and operation in 2017 and production and operation plan for 2018.
2. On 03.08.18, the 3rd meeting of the Development Strategy Committee of the 8th term of the Board was held to view the
Company’s production and operation in the first half of 2018 and studied the fulfillment of the business plan in the first half of the
year and places to be improved in the second half.
(2) Performance of the Auditing Committee
During the report period, four Auditing Committee meetings are held to review issues including the arrangement of audit,
regular financial reports, engaging the CFA, and use of the fund raised. Details of the meetings are disclosed as follows:
1. On 17.04.18, the 4thmeeting of the Auditing Committee of the 8 th term of the Board was held to review the financial
statements with the initial opinion issued by the CFA for 2017 and approve the auditor report issued by the CFA. After the CFA
issued to final auditor’s opinion, the Auditing Committee submitted the resolution on the annual financial statements to the Board
and issued the summary report on the auditing of the CFA for this year.
2. On 20.04.18, the Company held the 5th audit committee meeting of the 8th Board of Directors to listen to the 2017 financial
and internal audit report and approved (1) audited 2017 financial statements; (2) 2018 Q1 financial statements; (3) proposal of
engaging the auditor in 2018; (4) 2018 internal audit plan; (5) internal control self-evaluation report in 2017.
The audit committee suggests that the internal audit body should increase communication with the audit committee to help the
committee better under the Company's condition and make higher requirements on the audit quality. The members of the audit
committee gave professional advice on improving the Company's processes, optimizing the system, and risk prevention from various
perspectives based on their own experience in different industries. They also put forward higher requirements for the Company's
future internal control work.
3. On August 3 2018, the Company held the 6th meeting of the Audit Committee of the 8th Board of Directors and reported to the
members on the financial work and internal audit work report for the first half of 2018. The company's unaudited 2018 semi-annual
financial accounting statements were reviewed and approved.
4. On 17.10.18, the 7th meeting of the Auditing Committee of the 8th term of the Board on which the unaudited 2018 Q3
financial statements were approved.
(3) Performance of the Remuneration and Assessment Committee
During the reporting period, the Remuneration and Appraisal Committee of the Board of Directors held the first meeting of the
Remuneration and Appraisal Committee of the 8 th Board of Directors on April 20 2018 according to the "Working Rules of the
Remuneration and Appraisal Committee" formulated by the company and reviewed the proposal for 2017 annual remuneration of
supervisors and senior management personnel.
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方大集团股份有限公司 2018 年年度报告全文
VII. Performance of Supervisory Committee
(1) Risks for the Company discovered by the Supervisory Committee
□ Yes √ No
No disagreement with supervisory issues by the Supervisory Committee during the report period.
(2) The Supervisory Committee’ Work Report 2018
In 2018, the Supervisory Committee performed its duties and obligations in supervision and protect shareholders’ and the
Company’s interests in accordance with the Company Law, Share Listing Rules, Articles of Association and Rules of the Procedure
of the Supervisory Committee.The 2018 supervisory committee's work plan is as follows:
1. Opinions
(1) Legal compliance
In the report period, the Company has been operated in accordance with law. The convening of meeting of the Board and the
decision-making process are compliant with law, regulations and Articles of Association; the internal control system is solid.
Directors and senior management have performed their obligations. No violation against law, regulations, Articles of Association and
interests of the Company and shareholders was discovered.
(2) Financial condition
During the period, the accounting management has been compliant with the Accounting Law, Enterprise Accounting Standard.
No false, misleading statement or significant omission was found in financial statements. The financial reports of the Company
reflect the Company’s financial position, operation performance, cash flows and major risks truthfully, accurately and
completely.The CPA has issued the standard auditor’s report in 2018, which is objective, fair and truthful. It reflects the Company’s
financial position and operation performance.
(3) Implementation of internal control
The design and operation of the internal control is effective and meets the Company’s management and development
requirements. It can ensure the truthfulness, lawfulness, completeness of the financial materials and ensure the safety and
completeness of the Company’s property. In 2018, there was no violation by the Company against the Operation Regulations for
Listed Companies in the Main Board of Shenzhen Stock Exchange and the Company’s internal control system. The 2018 Internal
Control Self-evaluation Report truthfully and objectively reflects the establishment, implementation and improvement of the
Company’s internal control system. There are no significant or important problems in the financial and non-financial reports in the
report period.
2. Meetings and resolutions of the supervisory meeting in the report period:
Four meetings were held in 2018, all of which are on-site meetings. All proposal were approved and disclosed as required:
Convening
No. Meeting Date Topic
method
1. Review the work report of the 2017 Supervisory
Committee of the Company;2. Review the full text and
abstract of the 2017 annual report of the company;3. Review
5th meeting of
the full text and text of the first quarterly report of the
the 8th
1 20.04.18 On-site Company in 2018;4. Review the 2017 financial statements of
Supervisory
the company;5. To consider the proposal of the Company
Committee
regarding the profit distribution for 2017;6. To consider the
proposal of the company to hire an audit institution in 2018;7.
Review the 2017 internal control self-evaluation report of the
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方大集团股份有限公司 2018 年年度报告全文
company;8. Review the special report on the deposit and use
of the raised funds of the company in 2017;9. Review the
proposal of the company regarding changes in accounting
policies.
6th meeting of
the 8th
2 03.08.18 On-site 2018 Interim Report and the Summary of the Company
Supervisory
Committee
7th meeting of
the 8th
3 17.10.18 On-site 2018 Q3 Report and text;
Supervisory
Committee
8th meeting of
the 8th Elect the convenor of the 8th Supervisory Committee of the
4 28.12.18 On-site
Supervisory Company.
Committee
VIII. Assessment and motivation of senior executives
The Company has implemented a remuneration system that combines post wage and performance bonus. The wages and bonus
are determined by on the assessment of senior executives’ innovation capabilities, general quality, performance, fulfillment of profit
and payment collection targets according to the Company's annual performance assess and performance assess implementation
methods for wholly-owned subsidiaries.
IX. Internal control
1. Major problems in internal control discovered in the report period
□ Yes √ No
2. Internal control self-evaluation report
Date of disclosure of the internal control
30.01.19
evaluation report
Disclosure of the internal control
www.cninfo.com.cn
evaluation report
Percentage of assets in the evaluation
95.46%
scope in the total assets in the consolidated
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方大集团股份有限公司 2018 年年度报告全文
financial statements
Percentage of operation income in the
evaluation scope in the total operation
99.24%
income in the consolidated financial
statements
Standard
Type Financial report Non-financial report
I. The following condition indicates
1. The following problems are considered significant problems in the internal
major problems: 1. Non-effective control control of non-financial reports: 1.
environment; 2. corrupt practice by directors, Serious violation against national laws,
supervisor and senior management, causing regulations or specifications; 2. Serious
substantial loss and impacts for the business system problems and system
Company; 3. Substantial mistakes in the ineffectiveness; 3. Major or important
financial statements in the period discovered problems cannot be corrected; 4. Lack of
by the CPA, which are not discovered by the internal control and poor management; 5.
internal control; 4. Ineffective supervision of Loss of management personnel or key
the internal control by the Company’s employees; 6. Safety and environmental
auditing department2. The following accidents that cause major adverse
problems are considered significant impacts; 7. Other situations that cause
Standard problems: 1 accounting policies are selected major adverse impacts on the Company.
and used without complying to widely II. The following situations indicate that
accepted accounting standards; 2. No there may be significant problems with
anti-corrupt and important balance system the internal control: 1. business system
and control measures are taken; 3. Separate problems and system ineffectiveness; 2.
or multiple problems in the preparation of Major or important problems cannot be
financial reports, which are serious enough corrected; 3. Other situations that cause
to affecting the truthfulness and accuracy of major adverse impacts on the
the reports; no control system is established CompanyIII. The following situation
and no related compensation system is indicate likely normal problems in the
implemented for accounts of irregular or internal control: 1. Problems in the
special transactions3. Other problems are general business system; 2. Normal
considered normal problems. problems in the internal control
supervision cannot be correctly promptly.
1. Significant problem: 1 mistakes affecting
5% and more of the pre-tax profit and more
than RMB5 million in the consolidated
statements; 2. Mistakes affecting 5% and See the recognition standard of the
Standard more of the consolidated assets and more internal control problems for financial
than RMB5 million2. Important problem: 1. statements
Mistakes affecting 1%-5% of the pre-tax
profit in the consolidated statements; 2.
Mistakes affecting 1%-5% the consolidated
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方大集团股份有限公司 2018 年年度报告全文
assets.III. Normal problem: 1. Mistakes
affecting less than 1% of the pre-tax profit
and total assets of the consolidate statements.
Significant problems in financial
0
statements
Significant problems in non-financial
0
statements
Important problems in financial statements 0
Important problems in non-financial
0
statements
X. Internal control audit report
√ Applicable □ Inapplicable
Comments in the internal control audit report
We believe that China Fangda Group has maintained effective internal control on financial reports according to Basic Regulations
on Enterprise Internal Control and related regulations on 31.12.18.
Disclosure of internal auditor’s
Disclosed
report
Date of disclosure of the internal
30.01.19
control audit report
Source of disclosure of the internal
www.cninfo.com.cn
control audit report
Opinion type Standard opinion auditor’s report
Problems in non-financial
No
statements
Non-standard internal control audit report by the CFA
□ Yes √ No
Consistency between the internal control audit report and self-evaluation report
√ Yes □ No
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Chapter X. Information about the Company’s Securities
Bonds publicly issued and listed in a securities exchange, immature or not fully paid by the approval date of the annual report
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Chapter XI Financial Statements
I. Auditor’s report
Type Standard opinion auditor’s report
Issued on 28.01.19
Auditor Grant Thornton (limited liability partnership)
Report No. Grant Thornton (2019) No.350ZA0156
CPA names Chen Zhaoxin, Zeng Hui
Auditors’ Report
Auditor’s Report
Grant Thornton (2019) No.350ZA0156
To the shareholders of China Fangda Group Co., Ltd.:
1. Auditors’ Opinions
We have audited the Financial Statements of China Fangda Group Co., Ltd. (―Fangda Group‖)
attached hereafter, including the Balance Sheet and Consolidated Balance Sheet ended 31.12.18 and
the Income Statement, Consolidated Income Statement, Cash Flow Statement, Consolidated Cash
Flow Statement, Statement on Change of Shareholders’ Equity, Consolidated Statement on Change
of Shareholders’ Equity of the year 2018, as well as the Notes to the Financial Statements.
We believe that Fangda Group has been following with the Enterprise Accounting Standard in
preparing of the Financial Statements. The Financial Statements is reflecting, in all important
aspects, the financial situation of Fangda Group as of 31.12.18, and the business performance and
cash flow of year 2018.
2. Basis of the Opinions
We carried out the auditing works with compliance to Chinese CPA Auditing Standard, The
―CPA's Responsibility for Auditing Financial Statements‖ section of the audit report further
elaborated our responsibilities under these guidelines. In accordance with the Code of Ethics for
Chinese Certified Public Accountants, we are independent of Fangda Group and perform other
professional ethics duties. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
3. Key Audit Matters
The key audit matters are the matters that we believe are most important for the audit of the
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方大集团股份有限公司 2018 年年度报告全文
current financial statements based on professional judgment. The response to these matters is based
on the overall audit of the financial statements and the formation of an audit opinion. We do not
comment on these matters separately.
(1) Income recognition
For related information disclosure, please refer to Note III, 25, Note III, 30(3), Note V, 34 and
Note XIII 2 of the financial statements.
1. Description
In 2018, China Fangda Group's operating income was RMB3.049 billion of which construction
contract revenue accounted for 68.32% of the group's total revenue.
Fangda Group confirms revenue for the construction services provided by the construction
according to the percentage of completion method when the results of the construction contract can
be reliably estimated. Management needs to make a reasonable estimate of the initial total contract
revenue and total contract costs for the construction contract and continue to assess and revise it
during the contract implementation process, which involves significant accounting estimates of the
management.
Therefore, we identify construction contracts revenue recognition as key audit matters.
2. Audit response
Our audit procedures for the implementation of revenue recognition for construction contracts
mainly include:
(1) Understand and evaluate the design of internal control related to management contract and
construction contract budget and revenue recognition, and test the effectiveness of key control
implementation.
(2) Obtained a major construction contract, verified the contract revenue, and reviewed key
contract terms. Check the construction contract and cost budget information on which management
expects total revenue and estimated total cost.
(3) Obtain a construction contract ledger and project income cost summary table, perform an
analytical review of the project gross profit, and recalculate the construction contract completion
percentage and income in the construction contract to verify its accuracy.
(4) Select samples to check the project engineering details of the main project, subcontracted
labor approval forms, and the owner’s production value approval documents and records to verify
the contract costs incurred.
(5) Select samples to check if the relevant contract costs are recorded in the appropriate
accounting period.
(6) Select a sample to conduct a site inspection of the progress of the project image to verify the
reasonableness of the project's completion schedule.
(2) Measurement of fair value of investment real estate
For related information disclosure, please refer to Note III, 15, Note III, 30(1), Note V, 9 (2),
43 and Note IX 2 of the financial statements.
1. Description
As of 31.12.18, the carrying amount of investment real estate subsequently measured in the
consolidated financial statements using the fair value model was RMB5.231 billion, accounting
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方大集团股份有限公司 2018 年年度报告全文
49.08% of the total assets, and the gains from changes in fair value realized in the current period
were RMB2.917 billion, with a greater impact on the Group's consolidated statements.
The management of Fangda Group annually employs a third-party assessment agency with relevant
qualifications to evaluate the fair value of the investment real estate. The evaluation adopts the
comparison method and the income method to comprehensively analyze various factors that affect
the real estate price of the appraisal subject. The assessment of the fair value of investment real
estate involves many estimates and assumptions, such as the analysis of the economic environment
and future trends of the real estate where the investment real estate is located, discount rates, etc.
The changes in estimates and assumptions will have big impacts on the fair value of the investment
real estate evaluated. Therefore, we identify the measurement of fair value of investment real estate
as a key audit matter.
2. Audit response
Our audit procedures for the measurement of fair value of investment real estate mainly
include:
(1) Assess the competency, professional quality, independence and objectivity of third-party
assessment agencies employed by the management.
(2) Obtain the assessment report, selected major or typical samples, and use our real estate
appraisal experts to review and review the assessment methods and assumptions used in the
assessment report and the rationality of the selected key assessment parameters. Check the accuracy
and relevance of the data used by the management in valuation.
(3) Review the measurement, presentation and disclosure of fair value of investment real estate
in the financial statements.
(3) Provision of bad debt of account receivable
For details of the disclosure of relevant information please refer to Note III 11 and Note V 2 of
the notes to the financial statements.
1. Description
As stated in Note III 11 and Note V 2 of the financial statements as of December 31 2018, the
balance of accounts receivable of the Company was RMB2.286 billion and the provision for bad
debts was RMB366 million. The book value as a percentage of total assets was 21.45%. Due to the
significant amount of accounts receivable of Fangda Group, the management needs to use important
accounting estimates and judgments when determining the estimated recoverable amount of
accounts receivable. If the accounts receivable cannot be recovered on time or cannot be recovered
the impact on the financial statements is relatively high. Therefore we determined the accuracy of
the provision for bad debts of accounts receivable as a key audit matter.
2. Audit response
(1) Understand and evaluate the effectiveness of relevant internal control design for the
provision of bad debts of Fangda Group and accounts receivable and test the effectiveness of key
control operations.
(2) Based on the Company's industry characteristics and actual business conditions, the
management's standard for the significant amount of individual accounts receivable is evaluated and
the basis for the combination and the proportion of impairment based on the age of the accounts are
appropriate.
(3) Review the management's accrual process for the provision for impairment of receivables
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方大集团股份有限公司 2018 年年度报告全文
including: (1) for accounts receivable with impairment provision prepared by aging analysis method,
obtain the aging analysis form of accounts receivable prepared by management and bad debts
provision form, select the sample to check the accuracy of the ageing division of the accounts
receivable and calculate the accuracy of the calculation of the bad debt provision; (2) for the
accounts receivable for the provision for impairment provision review the management test process,
the accuracy and reasonableness of the information and related assumptions are checked for the
appropriateness of the provision for impairment of accounts receivable with long-term accounts
receivable.
4. Other information
The management of Fangda Group (hereinafter referred to as management) is responsible for
other information. The other information includes the information covered in Fangda Group's 2018
annual report, but does not include the financial statements and our audit report.
Our audit opinions published in the financial statements do not cover other information and we
do not publish any form of assurance conclusion on other information.
In connection with our audit of the financial statements, our responsibility is to read other
information. In the process, we consider whether there is a material inconsistency or other material
misstatement of other information whether it is in the financial statements or what we have learned
during the audit process.
Based on the work we have performed, if we determine that there is a material misstatement of
other information, we should report that fact. In this regard, we have nothing to report.
5. Executives’ responsibilities on the Financial Statements
(1) Preparing these financial statements according to the Accounting Standards for Business
Enterprises and presenting them fairly; (2) designing, implementing and maintaining necessary
internal control to make sure that these financial statements are free from material misstatement,
whether due to fraud or error.
In the preparation of the financial statements, the management is responsible for assessing Fangda
Group's ability to continue as a going concern, disclosing issues related to going concern (if
applicable), and applying the going concern assumption unless management plans to liquidate
Fangda Group, terminate operations or there are no other realistic choices.
The management is responsible for overseeing the financial reporting process of Fangda
Group.
6. Auditor's responsibility for auditing financial statements
Our objective is to obtain reasonable assurance as to whether the entire financial statements are
free from material misstatement due to fraud or error and to issue an audit report containing audit
opinions. Reasonable assurance is a high level of assurance, but it does not guarantee that an audit
performed in accordance with auditing standards can always be discovered when a major
misstatement exists. The report may be due to fraud or mistakes, and if a reasonable expectation of
misstatement alone or aggregated may affect the economic decision-making made by users of
financial statements based on the financial statements, the misstatement is generally considered to
be material.
In the process of conducting audit work in accordance with auditing standards, we use
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方大集团股份有限公司 2018 年年度报告全文
professional judgment and maintain professional suspicion. At the same time, we also perform the
following tasks:
(1) Identify and assess risks of material misstatement of financial statements due to fraud or
errors, design and implement audit procedures to address these risks, and obtain adequate and
appropriate audit evidence as a basis for issuing audit opinions. Since fraud may involve collusion,
falsification, intentional omission, misrepresentation or override of internal controls, the risk of
failing to detect a material misstatement due to fraud is higher than the risk of failing to detect a
material misstatement due to an error.
(2) Understand audit-related internal controls to design appropriate audit procedures.
(3) Evaluate the appropriateness of accounting policies adopted by the management and the
reasonableness of accounting estimates and related disclosures.
(4) Conclude on the appropriateness of management's use of continuing operations assumptions.
At the same time, based on the audit evidence obtained, it concludes that whether there are major
uncertainties in the matters or circumstances that may cause major doubts about the ability of the
Company’s continuing operations. If we conclude that there are significant uncertainties, the
auditing standards require us to request the users of the report to pay attention to the relevant
disclosures in the financial statements in the audit report; if the disclosure is not sufficient, we
should publish non-unqualified opinions. Our conclusions are based on the information available as
of the date of the audit report. However, future events or circumstances may result in Fangda
Group's inability to continue operating.
(5) Evaluate the overall presentation, structure, and content (including disclosure) of the
financial statements and evaluate whether the financial statements fairly reflect the relevant
transactions and events.
(6) Obtain sufficient and appropriate audit evidence on the financial information of entity or
business activities in Fangda Group to express opinions on the financial statements. We are
responsible for directing, supervising and executing group audits and assume full responsibility for
audit opinions.
We communicate with the governance team on planned audit scope, timing, and major audit
findings, including communication of the internal control deficiencies that we identified during the
audit.
We also provide a statement to the management on compliance with ethical requirements
related to independence, and communicate with the management on all relationships and other
matters that may reasonably be considered to affect our independence, as well as related preventive
measures (if applicable).
From the matters passed with the management, we determine which items are most important
for the audit of the financial statements of the current period and thus constitute the key audit
matters. We describe these matters in our audit report, unless laws and regulations prohibit the
public disclosure of these matters, or in rare cases, if it is reasonably expected that the negative
consequences of communicating something in the audit report will outweigh the benefits in the
public interest, we determine that such matter should not be communicated in the audit report.
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方大集团股份有限公司 2018 年年度报告全文
Grand Thornton CPA CPA China
(limited liability partnership) (project partner) Chen Zhaoxin
CPA China Zeng Hui
Beijing, China January 28, 2019
II. Financial statements
Unit for statements in notes to financial statements: RMB yuan
1. Consolidated Balance Sheet
Prepared by: China Fangda Group Co., Ltd.
31.12.18
In RMB
Item Closing balance Opening balance
Current asset:
Monetary capital 1,389,062,083.76 1,180,398,479.51
Settlement provision
Outgoing call loan
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Receivable note and accounts
2,060,214,724.69 1,960,008,863.36
receivable
Including: receivable notes 140,139,692.84 39,636,437.20
Account receivable 1,920,075,031.85 1,920,372,426.16
Prepayment 46,454,844.74 54,680,269.84
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
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Other receivables 139,990,188.26 60,904,672.69
Including: interest receivable 3,829,315.07
Dividend receivable
Repurchasing of financial assets
Inventory 651,405,832.29 819,610,960.67
Assets held for sales
Non-current assets due in 1 year
Other current assets 51,698,111.14 439,890,493.06
Total current assets 4,338,825,784.88 4,515,493,739.13
Non-current assets:
Loan and advancement provided
Sellable financial assets 21,674,008.23 28,562,575.67
Investment held until mature
Long-term receivable
Long-term share equity investment 70,105,657.88 34,142,055.62
Investment real estate 5,256,442,406.63 2,253,794,404.55
Fixed assets 455,274,241.83 468,118,279.18
Construction in process 58,269,452.72 2,668,198.62
Productive biological assets
Gas & petrol
Intangible assets 80,313,240.67 58,869,444.53
R&D expense
Goodwill
Long-term amortizable expenses 2,114,331.46 2,046,202.29
Deferred income tax assets 356,474,925.76 230,597,590.58
Other non-current assets 19,360,083.67 31,130,198.46
Total of non-current assets 6,320,028,348.85 3,109,928,949.50
Total of assets 10,658,854,133.73 7,625,422,688.63
Current liabilities
Short-term loans 208,000,000.00 616,000,000.00
Loans from Central Bank
Deposit received and held for others
Call loan received
Financial liabilities measured at fair
value with variations accounted into
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方大集团股份有限公司 2018 年年度报告全文
current income account
Derivative financial liabilities 1,625,725.00 159,000.00
Payable notes and accounts 1,547,495,316.83 1,479,313,284.40
Prepayment received 278,577,848.54 175,351,686.45
Selling of repurchased financial assets
Fees and commissions payable
Employees’ wage payable 44,513,062.17 40,399,130.75
Taxes payable 107,709,999.19 136,955,516.44
Other payables 813,118,699.84 503,614,822.66
Including: interest payable 2,098,971.44 2,425,311.97
Dividend payable
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities held for sales
Non-current liabilities due in 1 year 200,000,000.00 200,000,000.00
Other current liabilities 9,328,682.25 9,531,014.81
Total current liabilities 3,210,369,333.82 3,161,324,455.51
Non-current liabilities:
Long-term loans 1,193,978,153.39 893,978,153.39
Bond payable
Including: preferred stock
Perpetual bond
Long-term payable
Long-term employees’ wage payable
Anticipated liabilities 6,831,162.99 6,368,353.05
Deferred earning 10,401,161.30 10,489,483.94
Deferred income tax liabilities 1,042,086,700.35 314,323,040.56
Other non-current liabilities
Total of non-current liabilities 2,253,297,178.03 1,225,159,030.94
Total liabilities 5,463,666,511.85 4,386,483,486.45
Owner’s equity:
Share capital 1,155,481,686.00 1,183,642,254.00
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方大集团股份有限公司 2018 年年度报告全文
Other equity tools
Including: preferred stock
Perpetual bond
Capital reserves 1,454,191.59 72,829,484.96
Less: Shares in stock 10,831,437.66
Other miscellaneous income 7,382,087.59 8,585,847.99
Special reserves
Surplus reserves 120,475,221.40 110,690,396.65
Common risk provisions
Retained profit 3,921,225,872.96 1,863,191,218.58
Total of owner’s equity belong to the
5,195,187,621.88 3,238,939,202.18
parent company
Minor shareholders’ equity
Total of owners’ equity 5,195,187,621.88 3,238,939,202.18
Total of liabilities and owner’s interest 10,658,854,133.73 7,625,422,688.63
Legal representative: XiongJianming CFO: Lin Kebing Accounting Manager: Wu Bohua
Note 1: The "Notes receivable and accounts receivable" line item reflects the amount that should be collected by the enterprise for
operating activities such as selling goods and providing services and the commercial drafts received including bank acceptance
measured at amortized cost on the balance sheet date and bills of exchange and commercial acceptance bills.The item should be
based on the ending balance of the "Announceable Notes" and "Accounts Receivable" accounts less the amount of the relevant bad
debt provision ending balance in the "bad debt provision" account.
2. The "other receivables" line item should be filled in based on the total balance of "end of interest" "dividends receivable" and
"other receivables" less the balance of bad debt provision in the "bad debt provision" account.
3. The "under construction" line item reflects the closing book value of the construction in progress and the final book value of the
various materials prepared by the enterprise for the construction in progress.The item be filled in based on the closing balance of the
"construction in progress" less the amount after the closing balance of the "depreciation reserve for construction in progress" account
and the ending balance of the "engineering materials" less the "depreciation reserve for engineering materials".
4. The "Notes payable and accounts payable" line item reflects the amount payable by the enterprise on the balance sheet date for the
purchase of materials commodities and services and the commercial drafts issued and accepted including bank acceptance bills and
commercial acceptance bills. The item should be filled in based on the closing balance of the "Payables Payables" account and the
total balance of the ending credit balances of the relevant detailed accounts to which the "Accounts Payable" and "Prepaid Accounts"
accounts belong.
5. The "Other Payables" line item should be filled in based on the total closing balance of the "Payable Interests" "Dividends
Payable" and "Other Payables" accounts.
6. The "Long-term Payables" line item reflects the ending book value of various long-term payables other than long-term borrowings
and bonds payable by the company on the balance sheet date.The project should be filled in based on the closing balance of the
"Long-term Payables" account less the closing balance of the relevant "Unrecognized Financing Expenses" account and the closing
balance of the "Special Payables" account.
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方大集团股份有限公司 2018 年年度报告全文
2. Balance Sheet of the Parent Company
In RMB
Item Closing balance Opening balance
Current asset:
Monetary capital 410,118,157.55 310,299,329.68
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Receivable note and accounts
200,471,039.12 408,154.54
receivable
Including: receivable notes 200,000,000.00
Account receivable 471,039.12 408,154.54
Prepayment 6,733,047.16 349,740.31
Other receivables 822,543,653.04 823,793,780.45
Including: interest receivable 1,020,000.00
Dividend receivable 100,000,000.00 150,000,000.00
Inventory
Assets held for sales
Non-current assets due in 1 year
Other current assets 919,388.18 100,176,058.36
Total current assets 1,440,785,285.05 1,235,027,063.34
Non-current assets:
Sellable financial assets 21,674,008.23 28,562,575.67
Investment held until mature
Long-term receivable
Long-term share equity investment 983,339,494.35 925,349,494.35
Investment real estate 309,189,866.37 307,321,568.00
Fixed assets 53,784,811.23 55,816,611.77
Construction in process
Productive biological assets
Gas & petrol
Intangible assets 2,112,301.97 2,293,133.59
R&D expense
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方大集团股份有限公司 2018 年年度报告全文
Goodwill
Long-term amortizable expenses 917,499.68 460,000.00
Deferred income tax assets 34,555,598.81 23,409,576.18
Other non-current assets
Total of non-current assets 1,405,573,580.64 1,343,212,959.56
Total of assets 2,846,358,865.69 2,578,240,022.90
Current liabilities
Short-term loans 200,000,000.00 250,000,000.00
Financial liabilities measured at fair
value with variations accounted into current
income account
Derivative financial liabilities
Payable notes and accounts 676,941.85 606,941.85
Prepayment received 733,274.16 721,888.86
Employees’ wage payable 2,145,763.39 2,151,237.91
Taxes payable 341,004.65 11,721,681.36
Other payables 300,006,406.51 287,972,808.37
Including: interest payable 740,208.33 365,520.83
Dividend payable
Liabilities held for sales
Non-current liabilities due in 1 year
Other current liabilities
Total current liabilities 503,903,390.56 553,174,558.35
Non-current liabilities:
Long-term loans 500,000,000.00
Bond payable
Including: preferred stock
Perpetual bond
Long-term payable
Long-term employees’ wage payable
Anticipated liabilities
Deferred earning
Deferred income tax liabilities 64,130,617.41 63,864,007.22
Other non-current liabilities
Total of non-current liabilities 564,130,617.41 63,864,007.22
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Total liabilities 1,068,034,007.97 617,038,565.57
Owner’s equity:
Share capital 1,155,481,686.00 1,183,642,254.00
Other equity tools
Including: preferred stock
Perpetual bond
Capital reserves 360,835.52 71,736,128.89
Less: Shares in stock 10,831,437.66
Other miscellaneous income 8,756,553.46 8,756,553.46
Special reserves
Surplus reserves 120,475,221.40 110,690,396.65
Retained profit 504,081,999.00 586,376,124.33
Total of owners’ equity 1,778,324,857.72 1,961,201,457.33
Total of liabilities and owner’s interest 2,846,358,865.69 2,578,240,022.90
Note 1: The "Notes receivable and accounts receivable" line item reflects the amount that should be collected by the enterprise for
operating activities such as selling goods and providing services and the commercial drafts received including bank acceptance
measured at amortized cost on the balance sheet date and bills of exchange and commercial acceptance bills.The item should be
based on the ending balance of the "Announceable Notes" and "Accounts Receivable" accounts less the amount of the relevant bad
debt provision ending balance in the "bad debt provision" account.
2. The "other receivables" line item should be filled in based on the total balance of "end of interest" "dividends receivable" and
"other receivables" less the balance of bad debt provision in the "bad debt provision" account.
3. The "under construction" line item reflects the closing book value of the construction in progress and the final book value of the
various materials prepared by the enterprise for the construction in progress.The item be filled in based on the closing balance of the
"construction in progress" less the amount after the closing balance of the "depreciation reserve for construction in progress" account
and the ending balance of the "engineering materials" less the "depreciation reserve for engineering materials".
4. The "Notes payable and accounts payable" line item reflects the amount payable by the enterprise on the balance sheet date for the
purchase of materials commodities and services and the commercial drafts issued and accepted including bank acceptance bills and
commercial acceptance bills. The item should be filled in based on the closing balance of the "Payables Payables" account and the
total balance of the ending credit balances of the relevant detailed accounts to which the "Accounts Payable" and "Prepaid Accounts"
accounts belong.
5. The "Other Payables" line item should be filled in based on the total closing balance of the "Payable Interests" "Dividends
Payable" and "Other Payables" accounts.
6. The "Long-term Payables" line item reflects the ending book value of various long-term payables other than long-term borrowings
and bonds payable by the company on the balance sheet date.The project should be filled in based on the closing balance of the
"Long-term Payables" account less the closing balance of the relevant "Unrecognized Financing Expenses" account and the closing
balance of the "Special Payables" account.
3. Consolidated Income Statement
In RMB
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方大集团股份有限公司 2018 年年度报告全文
Item Amount occurred in the current period Occurred in previous period
1. Total revenue 3,048,680,152.06 2,947,470,813.58
Incl. Business income 3,048,680,152.06 2,947,470,813.58
Interest income
Insurance fee earned
Fee and commission
received
2. Total business cost 3,022,515,653.66 2,529,847,562.87
Incl. Business cost 2,337,948,010.42 1,998,238,889.21
Interest expense
Fee and commission paid
Insurance discharge
payment
Net claim amount paid
Net insurance policy
reserves provided
Insurance policy dividend
paid
Reinsurance expenses
Taxes and surcharges 152,681,927.79 191,789,929.01
Sales expense 49,833,945.89 61,063,948.40
Administrative expense 140,002,624.79 134,819,477.53
R&D cost 19,854,244.58 17,997,202.77
Financial expenses 82,328,388.89 67,058,846.06
Including: interest cost 75,934,358.74 66,942,527.90
Interest income 9,255,120.60 7,781,596.28
Asset impairment loss 239,866,511.30 58,879,269.89
Add: other gains 5,681,937.15 6,582,481.58
Investment gains (―-― for loss) 27,776,084.43 102,891,113.42
Incl. Investment gains from
-836,397.74 -2,162,975.06
affiliates and joint ventures
Gains from change of fair
2,913,858,560.57 892,408,648.26
value (―-― for loss)
Exchange gains (―-― for loss)
Investment gains ("-" for loss) -3,516,357.91 5,027,717.19
3. Operational profit (―-― for loss) 2,969,964,722.64 1,424,533,211.16
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Plus: non-operational income 3,712,594.09 8,382,787.23
Less: non-operational expenditure 3,846,202.80 8,073,399.54
4. Gross profit (―-― for loss) 2,969,831,113.93 1,424,842,598.85
Less: Income tax expenses 723,666,542.25 273,795,377.34
5. Net profit (―-― for net loss) 2,246,164,571.68 1,151,047,221.51
(1) Net profit from continuous
2,246,384,786.08 1,128,300,551.18
operation ("-" for net loss)
(2) Net profit from discontinuous
-220,214.40 22,746,670.33
operation ("-" for net loss)
Net profit attributable to the
2,246,164,571.68 1,144,404,441.03
owners of parent company
Minor shareholders’ equity 6,642,780.48
6. After-tax net amount of other misc.
-1,203,760.40 6,455,393.47
incomes
After-tax net amount of other misc.
-1,203,760.40 6,455,393.47
incomes attributed to parent's owner
(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
(2) Other misc. incomes that will
-1,203,760.40 6,455,393.47
be re-classified into gain and loss
1. Other comprehensive
income that can be transferred to profit
or loss under the equity method
2．Change in the fair value
of financial asset for sale
3 Held-to-mature
investment reclassified as gain and loss
in the financial assets for sales
4. Effective part in the gain
-1,170,896.25 -1,959,992.79
and loss of arbitrage of cash flow
5. Translation difference of
-32,864.15 -249,335.57
foreign exchange statement
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方大集团股份有限公司 2018 年年度报告全文
6. Others 8,664,721.83
After-tax net of other misc. income
attributed to minority shareholders
7. Total of misc. incomes 2,244,960,811.28 1,157,502,614.98
Total of misc. incomes attributable
2,244,960,811.28 1,150,859,834.50
to the owners of the parent company
Total misc gains attributable to the
6,642,780.48
minor shareholders
8. Earnings per share:
(1) Basic earnings per share 1.91 0.97
(2) Diluted earnings per share 1.91 0.97
Net profit contributed by entities merged under common control in the report period was RMB , net profit realized by
parties merged during the previous period is RMB .
Legal representative: XiongJianming CFO: Lin Kebing Accounting Manager: Wu Bohua
Note: 1. Financial expenses related to financial business need to separately list exchange income items.
2. The "R&D Expenses" line item reflects the expenses incurred by the company in the research and development process.The
project should be based on an analysis of the amount of the "R&D Expenses" detail account under the "Management Expenses"
section.
4. Income Statement of the Parent Company
In RMB
Item Amount occurred in the current period Occurred in previous period
1. Turnover 30,830,762.76 29,333,583.31
Less: Operation cost 1,604,559.26 2,041,826.84
Taxes and surcharges 1,342,603.83 1,329,711.99
Sales expense
Administrative expense 24,395,947.11 26,156,987.68
R&D cost
Financial expenses 25,450,212.15 -508,902.33
Including: interest cost 23,822,633.36 7,737,441.67
Interest income 2,758,152.15 8,560,615.95
Asset impairment loss 7,597,228.84 -39,145,789.67
Add: other gains 368,589.30 819,420.96
Investment gains (―-― for loss) 124,133,997.29 158,138,502.44
Incl. Investment gains from -2,142,252.28
90
方大集团股份有限公司 2018 年年度报告全文
affiliates and joint ventures
Gains from change of fair
1,868,298.37 1,820,847.37
value (―-― for loss)
Investment gains ("-" for loss) -55,902.90 -3,913.82
2. Operational profit (―-― for loss) 96,755,193.63 200,234,605.75
Plus: non-operational income 42,961.77 3,065,841.55
Less: non-operational expenditure 506,232.62 3,164,398.33
3. Gross profit (―-― for loss) 96,291,922.78 200,136,048.97
Less: Income tax expenses -9,543,869.19 -18,370,012.57
4. Net profit (―-― for net loss) 105,835,791.97 218,506,061.54
(1) Net profit from continuous
105,835,791.97 218,506,061.54
operation ("-" for net loss)
(2) Net profit from discontinuous
operation ("-" for net loss)
5. After-tax net amount of other misc.
8,664,721.83
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
(2) Other misc. incomes that will
8,664,721.83
be re-classified into gain and loss
1. Other comprehensive
income that can be transferred to profit
or loss under the equity method
2．Change in the fair value
of financial asset for sale
3 Held-to-mature
investment reclassified as gain and loss
in the financial assets for sales
4. Effective part in the gain
and loss of arbitrage of cash flow
5. Translation difference of
foreign exchange statement
91
方大集团股份有限公司 2018 年年度报告全文
6. Others 8,664,721.83
6. Total of misc. incomes 105,835,791.97 227,170,783.37
7. Earnings per share:
(1) Basic earnings per share
(2) Diluted earnings per share
Note: The "R&D Expenses" line item reflects the expenses incurred by the company in the research and development process.The
project should be based on an analysis of the amount of the "R&D Expenses" detail account under the "Management Expenses"
section.
5. Consolidated Cash Flow Statement
In RMB
Item Amount occurred in the current period Occurred in previous period
1. Net cash flow from business
operations:
Cash received from sales of
2,865,682,841.59 3,418,351,614.70
products and providing of services
Net increase of customer deposits
and capital kept for brother company
Net increase of loans from central
bank
Net increase of inter-bank loans
from other financial bodies
Cash received against original
insurance contract
Net cash received from reinsurance
business
Net increase of client deposit and
investment
Increase in proposal of financial
assets measured at fair value with
variations accounted into current
income account
Cash received as interest,
processing fee, and commission
Net increase of inter-bank fund
received
Net increase of repurchasing
business
92
方大集团股份有限公司 2018 年年度报告全文
Tax refunded 1,647,970.72 3,804,545.99
Other cash received from business
107,059,575.17 127,738,857.46
operation
Sub-total of cash inflow from business
2,974,390,387.48 3,549,895,018.15
operations
Cash paid for purchasing products
1,671,518,745.27 2,001,850,190.24
and services
Net increase of client trade and
advance
Net increase of savings in central
bank and brother company
Cash paid for original contract
claim
Cash paid for interest, processing
fee and commission
Cash paid for policy dividend
Cash paid to and for the staff 274,922,323.91 253,752,112.76
Taxes paid 301,712,580.53 474,915,595.80
Other cash paid for business 339,134,018.20
261,543,973.62
activities
Sub-total of cash outflow from business 2,587,287,667.91
2,992,061,872.42
operations
Cash flow generated by business 387,102,719.57
557,833,145.73
operations, net
2. Cash flow generated by investment:
Cash received from investment
7,573,967,278.99 11,062,067,410.96
recovery
Cash received as investment profit 86,864,507.03 135,457,226.80
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 17,886,076.00 15,664,032.91
long-term assets
Net cash received from disposal of
488,779.75
subsidiaries or other operational units
Other investment-related cash
received
Sub-total of cash inflow generated from
7,678,717,862.02 11,213,677,450.42
investment
Cash paid for construction of fixed 199,604,502.80 39,773,885.41
93
方大集团股份有限公司 2018 年年度报告全文
assets, intangible assets and other
long-term assets
Cash paid as investment 7,271,417,092.50 11,563,042,000.00
Net increase of loan against pledge
Net cash paid for acquiring
subsidiaries and other operational units
Other cash paid for investment
Subtotal of cash outflows 7,471,021,595.30 11,602,815,885.41
Cash flow generated by investment
207,696,266.72 -389,138,434.99
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
708,000,000.00 978,503,029.59
loans
Cash received from bond placing
Other cash received from financing
activities
Subtotal of cash inflow from financing
708,000,000.00 978,503,029.59
activities
Cash paid to repay debts 816,000,000.00 790,000,000.00
Cash paid as dividend, profit, or
264,157,464.17 359,248,335.73
interests
Incl. Dividend and profit paid by
subsidiaries to minority shareholders
Other cash paid for financing 199,439,589.23
activities
Subtotal of cash outflow from financing 1,279,597,053.40
1,149,248,335.73
activities
Net cash flow generated by financing -571,597,053.40
-170,745,306.14
activities
4. Influence of exchange rate changes
1,703,422.24 -2,488,444.45
on cash and cash equivalents
5. Net increase in cash and cash
24,905,355.13 -4,539,039.85
equivalents
94
方大集团股份有限公司 2018 年年度报告全文
Plus: Balance of cash and cash
931,285,535.55 935,824,575.40
equivalents at the beginning of term
6. Balance of cash and cash equivalents
956,190,890.68 931,285,535.55
at the end of the period
6. Cash Flow Statement of the Parent Company
In RMB
Item Amount occurred in the current period Occurred in previous period
1. Net cash flow from business
operations:
Cash received from sales of
26,555,743.34 26,119,015.91
products and providing of services
Tax refunded
Other cash received from business
1,976,545,022.66 1,250,545,372.09
operation
Sub-total of cash inflow from business
2,003,100,766.00 1,276,664,388.00
operations
Cash paid for purchasing products
2,060,345.12 36,569,179.86
and services
Cash paid to and for the staff 15,053,325.83 16,683,356.55
Taxes paid 15,944,462.51 2,804,616.75
Other cash paid for business 2,263,461,863.27
1,184,826,856.40
activities
Sub-total of cash outflow from business 2,296,519,996.73
1,240,884,009.56
operations
Cash flow generated by business -293,419,230.73
35,780,378.44
operations, net
2. Cash flow generated by investment:
Cash received from investment
2,646,355,978.40 3,757,868,645.34
recovery
Cash received as investment profit 197,678,018.89 514,225,411.35
Net cash retrieved from disposal of
fixed assets, intangible assets, and other
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash 10,000,000.00
95
方大集团股份有限公司 2018 年年度报告全文
received
Sub-total of cash inflow generated from
2,854,033,997.29 4,272,094,056.69
investment
Cash paid for construction of fixed
assets, intangible assets and other 1,125,745.40 1,850,897.55
long-term assets
Cash paid as investment 2,626,870,000.00 3,846,012,000.00
Net cash paid for acquiring
subsidiaries and other operational units
Other cash paid for investment
Subtotal of cash outflows 2,627,995,745.40 3,847,862,897.55
Cash flow generated by investment
226,038,251.89 424,231,159.14
activities, net
3. Cash flow generated by financing
activities:
Cash received from investment
Cash received from borrowed
700,000,000.00 250,000,000.00
loans
Cash received from bond placing
Other cash received from financing
activities
Subtotal of cash inflow from financing
700,000,000.00 250,000,000.00
activities
Cash paid to repay debts 250,000,000.00 190,000,000.00
Cash paid as dividend, profit, or
211,344,710.76 284,121,945.63
interests
Other cash paid for financing 199,439,589.23
activities
Subtotal of cash outflow from financing 660,784,299.99
474,121,945.63
activities
Net cash flow generated by financing 39,215,700.01
-224,121,945.63
activities
4. Influence of exchange rate changes
-289,429.05 4.86
on cash and cash equivalents
5. Net increase in cash and cash
-28,454,707.88 235,889,596.81
equivalents
Plus: Balance of cash and cash
310,049,329.68 74,159,732.87
equivalents at the beginning of term
96
方大集团股份有限公司 2018 年年度报告全文
6. Balance of cash and cash equivalents
281,594,621.80 310,049,329.68
at the end of the period
7. Statement of Change in Owners’ Equity (Consolidated)
Amount of the Current Term
In RMB
Current period
Owners’ Equity Attributable to the Parent Company
Minor
Other equity tools Other Commo Total of
Item shareho
Less:
Share Prefer Perpet Capital miscella Special Surplus n risk Retaine owners’
Shares lders’
Other equity
capital red ual reserves neous reserves reserves provisio d profit
s in stock equity
share bond income ns
1,183, 1,863,1 3,238,9
1. Balance at the 72,829, 8,585,8 110,690
642,25 91,218. 39,202.
end of last year 484.96 47.99 ,396.65
4.00 58 18
Plus:
Changes in
accounting
policies
Correction of
previous errors
Consolidation of
entities under
common control
Others
2. Balance at the 1,183, 1,863,1 3,238,9
72,829, 8,585,8 110,690
beginning of 642,25 91,218. 39,202.
484.96 47.99 ,396.65
current year 4.00 58 18
3. Amount of
-28,16 2,058,0 1,956,2
change in current -71,375, 10,831, -1,203,7 9,784,8
0,568. 34,654. 48,419.
term (―-― for 293.37 437.66 60.40 24.75
00 38 70
decrease)
2,246,1 2,244,9
(1) Total of misc. -1,203,7
64,571. 60,811.
incomes 60.40
68 28
(2) Investment or -28,16 -71,375, 10,831, -798,75 -111,16
decreasing of 0,568. 293.37 437.66 4.45 6,053.4
97
方大集团股份有限公司 2018 年年度报告全文
capital by owners 00 8
1. Common shares -28,16 -111,16
-71,375, 10,831, -798,75
invested by 0,568. 6,053.4
293.37 437.66 4.45
owners 00 8
2. Capital
contributed by
other equity
instrument helders
3. Amount of
shares paid and
accounted as
owners’ equity
4. Others
-188,12 -177,54
(3) Profit 10,583,
9,917.3 6,338.1
allotment 579.20
0 0
1. Providing of 10,583, -10,583,
surplus reserves 579.20 579.20
2. Common risk
provision
3. Allotment to the -177,54 -177,54
owners (or 6,338.1 6,338.1
shareholders) 0 0
4. Others
(4) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3. Making up
losses by surplus
reserves
4. Retained gain
transferred due to
change in set
98
方大集团股份有限公司 2018 年年度报告全文
benefit program
5. Others
(5) Special
reserves
1. Provided this
year
2. Used this term
(6) Others
1,155, 3,921,2 5,195,1
4. Balance at the 1,454,1 10,831, 7,382,0 120,475
481,68 25,872. 87,621.
end of this period 91.59 437.66 87.59 ,221.40
6.00 96 88
Amount of the Previous Term
In RMB
Last period
Owners’ Equity Attributable to the Parent Company
Minor
Other equity tools Other Commo Total of
Item shareho
Less:
Share Prefer Perpet Capital miscella Special Surplus n risk Retaine owners’
Shares lders’
Other equity
capital red ual reserves neous reserves reserves provisio d profit
s in stock equity
share bond income ns
789,09 1,016,8 2,302,3
1. Balance at the 467,376 2,130,4 88,839, -61,949
4,836. 20,576. 13,350.
end of last year ,902.96 54.52 790.50 ,210.11
00 30 17
Plus:
Changes in
accounting
policies
Correction of
previous errors
Consolidation of
entities under
common control
Others
2. Balance at the 789,09 1,016,8 2,302,3
467,376 2,130,4 88,839, -61,949
beginning of 4,836. 20,576. 13,350.
,902.96 54.52 790.50 ,210.11
current year 00 30 17
3. Amount of 394,54 -394,54 6,455,3 21,850, 846,370 61,949, 936,625
change in current 7,418. 7,418.0 93.47 606.15 ,642.28 210.11 ,852.01
99
方大集团股份有限公司 2018 年年度报告全文
term (―-― for 00 0
decrease)
1,144,4 1,157,5
(1) Total of misc. 6,455,3 6,642,7
04,441. 02,614.
incomes 93.47 80.48
03 98
(2) Investment or
55,306, 55,306,
decreasing of
429.63 429.63
capital by owners
1. Common shares
invested by
owners
2. Capital
contributed by
other equity
instrument helders
3. Amount of
shares paid and
accounted as
owners’ equity
55,306, 55,306,
4. Others
429.63 429.63
-298,03 -276,18
(3) Profit 21,850,
3,798.7 3,192.6
allotment 606.15
5 0
1. Providing of 21,850, -21,850,
surplus reserves 606.15 606.15
2. Common risk
provision
3. Allotment to the -276,18 -276,18
owners (or 3,192.6 3,192.6
shareholders) 0 0
4. Others
(4) Internal 394,54 -394,54
transferring of 7,418. 7,418.0
owners’ equity 00 0
1. Capitalizing of 394,54 -394,54
capital reserves (or 7,418. 7,418.0
to capital shares) 00 0
2. Capitalizing of
surplus reserves
100
方大集团股份有限公司 2018 年年度报告全文
(or to capital
shares)
3. Making up
losses by surplus
reserves
4. Retained gain
transferred due to
change in set
benefit program
5. Others
(5) Special
reserves
1. Provided this
year
2. Used this term
(6) Others
1,183, 1,863,1 3,238,9
4. Balance at the 72,829, 8,585,8 110,690
642,25 91,218. 39,202.
end of this period 484.96 47.99 ,396.65
4.00 58 18
8. Statement of Change in Owners’ Equity (Parent Company)
Amount of the Current Term
In RMB
Current period
Other equity tools Other
Less: Total of
Item Share Capital miscellan Special Surplus Retaine
Preferre Perpetu Shares in owners’
capital Others reserves eous reserves reserves d profit
d share al bond stock equity
income
1. Balance at the 1,183,64 71,736,12 8,756,553 110,690,3 586,376 1,961,201
end of last year 2,254.00 8.89 .46 96.65 ,124.33 ,457.33
Plus:
Changes in
accounting
policies
Correction of
previous errors
Others
2. Balance at the 1,183,64 71,736,12 8,756,553 110,690,3 586,376 1,961,201
101
方大集团股份有限公司 2018 年年度报告全文
beginning of 2,254.00 8.89 .46 96.65 ,124.33 ,457.33
current year
3. Amount of
change in current -28,160, -71,375,2 10,831,43 9,784,824 -82,294, -182,876,
term (―-― for 568.00 93.37 7.66 .75 125.33 599.61
decrease)
(1) Total of misc. 105,835 105,835,7
incomes ,791.97 91.97
(2) Investment or
-28,160, -71,375,2 10,831,43 -798,754. -111,166,
decreasing of
568.00 93.37 7.66 45 053.48
capital by owners
1. Common shares
-28,160, -71,375,2 10,831,43 -798,754. -111,166,
invested by
568.00 93.37 7.66 45 053.48
owners
2. Capital
contributed by
other equity
instrument helders
3. Amount of
shares paid and
accounted as
owners’ equity
4. Others
-188,12
(3) Profit 10,583,57 -177,546,
9,917.3
allotment 9.20 338.10
0
1. Providing of 10,583,57 -10,583,
surplus reserves 9.20 579.20
2. Allotment to the -177,54
-177,546,
owners (or 6,338.1
338.10
shareholders) 0
3. Others
(4) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
102
方大集团股份有限公司 2018 年年度报告全文
(or to capital
shares)
3. Making up
losses by surplus
reserves
4. Retained gain
transferred due to
change in set
benefit program
5. Others
(5) Special
reserves
1. Provided this
year
2. Used this term
(6) Others
4. Balance at the 1,155,48 360,835.5 10,831,43 8,756,553 120,475,2 504,081 1,778,324
end of this period 1,686.00 2 7.66 .46 21.40 ,999.00 ,857.72
Amount of the Previous Term
In RMB
Last period
Other equity tools Other
Less: Total of
Item Share Capital miscellan Special Surplus Retaine
Preferre Perpetu Shares in owners’
capital Others reserves eous reserves reserves d profit
d share al bond stock equity
income
1. Balance at the 789,094, 466,283,5 88,839,79 665,903 2,010,213
91,831.63
end of last year 836.00 46.89 0.50 ,861.54 ,866.56
Plus:
Changes in
accounting
policies
Correction of
previous errors
Others
2. Balance at the
789,094, 466,283,5 88,839,79 665,903 2,010,213
beginning of 91,831.63
836.00 46.89 0.50 ,861.54 ,866.56
current year
3. Amount of 394,547, -394,547, 8,664,721 21,850,60 -79,527, -49,012,4
103
方大集团股份有限公司 2018 年年度报告全文
change in current 418.00 418.00 .83 6.15 737.21 09.23
term (―-― for
decrease)
(1) Total of misc. 8,664,721 218,506 227,170,7
incomes .83 ,061.54 83.37
(2) Investment or
decreasing of
capital by owners
1. Common shares
invested by
owners
2. Capital
contributed by
other equity
instrument helders
3. Amount of
shares paid and
accounted as
owners’ equity
4. Others
-298,03
(3) Profit 21,850,60 -276,183,
3,798.7
allotment 6.15 192.60
5
1. Providing of 21,850,60 -21,850,
surplus reserves 6.15 606.15
2. Allotment to the -276,18
-276,183,
owners (or 3,192.6
192.60
shareholders) 0
3. Others
(4) Internal
394,547, -394,547,
transferring of
418.00 418.00
owners’ equity
1. Capitalizing of
394,547, -394,547,
capital reserves (or
418.00 418.00
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3. Making up
104
方大集团股份有限公司 2018 年年度报告全文
losses by surplus
reserves
4. Retained gain
transferred due to
change in set
benefit program
5. Others
(5) Special
reserves
1. Provided this
year
2. Used this term
(6) Others
4. Balance at the 1,183,64 71,736,12 8,756,553 110,690,3 586,376 1,961,201
end of this period 2,254.00 8.89 .46 96.65 ,124.33 ,457.33
III. General Information
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 Building, Kejinan Road 12, High-tech Zone, Shenzhen. Mr. XiongJianming 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 profit distribution plan for 2016 approved by the 2016 general shareholders' meeting, the Company
issued five shares for every ten shares to all shareholders through surplus capitalization based on the total 789,094,836 shares on
December 31, 2016. At the end of 2017, the registered capital was RMB1,183,642,254.00. In August 2018, the company
repurchased and cancelled 28,160,568.00 B shares and the existing registered capital was RMB1,155,481,686.00.
The Company has established a corporate governance structure that comprises shareholders’ meeting, board of directors and
supervisory committee. Currently, the Company sets up the President Office, Administrative Department, HR Department, Enterprise
Management Department, Financial Department, Audit and Supervisory Department, Securities Department, Technology Innovation
Department and IT Department and has established subsidiaries including Fangda Decoration, FangdaChuangzhi, Fangda New
Material, Fangda Property and Fangda New Energy.
The business nature and main business operations of the Company and subsidiaries (―the Group‖) include (1) production and sales of
curtain wall materials, design, production and installation of construction curtain walls; (2) assembly and production of subway
screen doors; (3) development and operation of real estate projects on land, of which rights have been obtained lawfully; (4) R&D,
installation and sales of PV devices, design and installation of PV power plants.
105
方大集团股份有限公司 2018 年年度报告全文
The financial statements and notes are approved at the 13th meeting of the 8th term of the Board of Directors held on 28.01.19.
The consolidation scope for the consolidated financial statements includes the Company and all subsidiaries. The main entities
included in the scope of consolidation in this period include two subsidiaries. In this period the company is no longer included in the
scope of consolidation. In this period the subsidiary Fangda Decoration Engineering (Shenyang) Co. Ltd. (hereinafter referred to as
Shenyang Decoration Company) was cancelled. See Note 8 Change to consolidation scope and Note 9 Interests in other entities.
IV. Basis for the preparation of financial statements
1. Preparation basis
The financial statements are prepared according to the enterprise financial standard and guidelines, interpretation and other related
regulations (―the Standard‖) issued by the Ministry of Finance. The Group 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.
The Group prepares the financial statements based on continuous operation.
The Group's auditing is based on the accrual basis. Except for some financial instruments and property held for investment, the
financial statements are prepared based on historical costs. In case of any asset impairment, the impairment provision will be made as
required.
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
Whether the Company needs to comply with disclosure requirements of special industries
Yes
Property development and decoration industries
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.2 – Listed Companies Engaged in Solid Mineral Resources Related Business.
Specific accounting policy and estimate prompt:
The Group determines the accounting policies and income recognition policies for investment real estate according to the production
and business features. For details, see Note V. 13 and Note V. 22.
1. Statement of compliance to the Enterprise Accounting Standard
The financial report and statements are prepared with compliance to the requirement of the Enterprise Accounting Standard. They
106
方大集团股份有限公司 2018 年年度报告全文
reflect the financial position as of 31.12.18, and business performance and cash flow situation in Year 2018 of the Company frankly
and completely.
2. Fiscal Period
The fiscal year of the Group is the solar calendar year, that is from January 1 to December 31.
3. Operation period
The operation period of the Group is 12 months.
4. Bookkeeping standard money
The Company, domestic subsidiaries and overseas subsidiary Shihui International Holding Co., Ltd. use RMB as bookkeeping
standard money. Overseas subsidiaries Automatic System (Hong Kong) Co., Ltd. and Fangda Australia Pty Ltd use HKD and
AUD as bookkeeping standard money respectively. The Group prepares financial statements in RMB.
5. Accounting treatment of the entities under common and different control
(1) Consolidation of entities under common control
Assets and liabilities obtained by the merging party are calculated at their book value with the merged parties at the merger day in the
consolidated financial statement of the merging party in addition to the adjustment made given the difference in accounting policies.
The differences between the book value of net assets and the book value of consideration price (or the total of face value of share
issued) are adjusted to the capital reserve (share capital premium). If the share capital premium is not enough to offset the difference,
it will be adjusted to the retained gains.
Enterprise merger under common control through multiple transactions
In separate financial statements, the initial investment cost is the book value of the merged party’s net assets that can be shared by the
merging party in the consolidate financial statements of the final controlling party according to the shareholding percentage on the
merging date; 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.
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.Changes in recognized related profit and loss, other misc. incomes and
other owner's equity between the later one of the date when the original stock equity was obtained and the date when the merged
party and merging party become under the common control should respectively write down the retained profit in beginning of the
report period or current period’s profit or loss.
(2) Consolidation of entities under different control
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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. On the acquisition day, the assets and
liabilities (if any) acquired by the Group from the acquired party are recognized on the fair value.
If the merger costs exceed the fair value of the recognizable net assets of the acquired party in the merger, it is recognized as
goodwill and measured based the costs after the accumulative impairment provision is deducted; if the the fair value exceeds the
costs, it is included in the income statement for the period after being re-examined.
Where there is new or further evidence on the condition existing on the acquisition date 12 months later and adjustment needs to be
made, the good will should be adjusted and merged.
(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 consolidate scope of consolidated financial statements is determined based on control. 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. Subsidiaries are enterprises controlled by the Company.
(2). Preparation of Consolidated Financial Statements
The consolidated financial statements are prepared by the Company based on financial statements of the Company and subsidiaries
and according to other related information. During preparation of consolidated financial statements, the accounting policies and
period of the Company and subsidiaries must be the same. Major transactions and balances between companies are offset.
Subsidiaries and businesses increased because of merger of enterprises under the common control during the report period are
deemed consolidated into the consolidate scope from the date of becoming controlled by the final party. The operating result and
cash flows of the subsidiaries and businesses from the date of becoming controlled by the final party should be incorporated into the
consolidate income statement and consolidate cash flow statement.
For subsidiaries and businesses increased because of merger of enterprises not under the common control, their incomes, expenses
and profits between the date of acquisition and end of the report period should be incorporated into the consolidated income
statement, and the cash flows should be incorporated into the consolidated cash flow statement.
The shareholder's equity of the subsidiary company is not part of the company's ownership and is presented separately as minority
shareholders' equity in the consolidated balance sheet. The subsidiary's current net profit or loss is the share of minority shareholders'
equity is listed as "minority shareholder gains and losses" in the net profit item of the consolidated income statement. If the losses
of subsidiaries shared by the minority shareholders exceed the part of the owners’ equity of the subsudiaries at the beginning of the
period, the excessive part will offset the minority shareholders’ equity.
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(3) Acquisition of subsidiary minority interests
The difference between the investment cost of the long-term equity obtained from acquisition of minority interests and the share of
net assets in the subsidiary calculated continuously based on the increased shareholding percentage, and the difference between the
disposal income obtained from the partial disposal of the subsidiary’s equity investment without losing the control power and the
share of net assets in the subsidiary calculated continuously based on the increased shareholding percentage should be adjusted and
consolidated in the capital surplus in the consolidated balance sheet. Where the capital surplus falls short, the retained income should
be adjusted.
(4) Treatment of loss of subsidiaries’ control power
For loss of control over subsidiaries due to disposal of partial equity investment or other reasons, the remaining equity should be
re-measured at the fair value on the date of loss of the control power; the sum of the consideration obtained from the disposal of stock
equity and the fair value of the remaining equity, minus the sum of the share of the net assets’ book value calculated continuously
from the acquisition date according to the original shareholding percentage and the goodwill should be recorded in the investment
gain of the current period of the loss of control power.
Other misc. incomes related to the equity investment in the original subsidiary is transferred to the current period’s profit and loss
when the control power is losted, except for the other misc. incomes generated by remeasurement and resetting of earning plan or
change in the net assets by the invested party.
7. Recognition of cash and cash equivalents
Cash refers to cash on hand and deposits that can be used at any time for payment. Cash equivalent refers to the investments with
short term, strong liquidity and small risk of value fluctuation that are held by the Group and easily converted into cash with known
amount.
8. Foreign exchange business and foreign exchange statement translation
(1) Foreign currencies
Trades of the Group made in foreign currencies are translated into RMB basing on the spot exchange rate on the date when the trade
is conducted.
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.
(2) Translation of foreign exchange statement
On the balance sheet date, when foreign currency financial statements of overseas subsidiaries are converted, the assets and liabilities
items in the balance sheet are converted using the spot exchange rate on the balance sheet date. The shareholders’ equity items are
calculated as ―undistributed profits‖, except for other items. The spot exchange rate on the date of occurrence is used for conversion.
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The income and expense items in the income statement are translated using the exchange rate that is determined by the system’s
reasonable method and approximate to the spot exchange rate on the transaction date.
All items in the cash flow statement are converted according to the exchange rate that is determined by the system's reasonable
method and approximate to the spot exchange rate on the day the cash flow occurs. The impact of changes in exchange rates on cash
is used as a reconciliation item, which is separately presented in the cash flow statement ―Items Affecting Exchange Rate Movements
on Cash and Cash Equivalents‖.
The difference arising from the translation of the financial statements is reflected in the "Other comprehensive income" item under
the shareholders' equity item in the 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 liabilitie or equity
instruments.
(1) Recognition and derecognition of financial instrument
The Group 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.
When partial or all of the current responsibilities attached to such financial liabilities, the partial or all of the financial liabilities are
derecognized. When the Group (debtor) and creditor enter into an agreement to replace the existing financial liabilities by
undertaking new financial liabilities and the contract terms for the new financial liabilities are essentially different from those for the
existing one, the existing financial liabilities will be derecognized and new financial liabilities will be recognized.
Financial asset transactions in regular ways are recognized and de-recognized on the transaction date.
(2) Classification and measurement of financial assets
Financial assets of the Group are categorized as: financial assets measured at fair value with variations accounted into current income
account, receivables and financial assets available for sales.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.
Financial assets measured at fair value with variations accounted into current income account
It includes transactional financial assets and financial assets measured by fair value and with variations accounted into current
gain/loss account at initial recognition. The financial assets are further measured by fair value with the gain/loss created by variations
in fair value and related dividends and interest accounted into the current gain/loss account.
Receivables
Receivables refer to non-derivative financial assets without quotations but with fixed recoverable amount or can be confirmed,
including receivable notes, receivable accounts and other receivables (Note V. 10).Receivables adopt the effective interest method
and are further measured by amortized cost. Gain/loss generated at final recognition, impairment or amortization is accounted into
the current gain/loss account.
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Sellable financial assets
Sellable financial asset refers to those sellable non-derivate financial assets recognized initially and financial assets otherthan the
above-mentioned types of financial assets. Sellable financial assets are further measured by fair value and the premium/discount is
amortized by the effective interest method and recognized as interest income. Other than the exchange difference of impairment loss
and foreign exchange monetary financial assets, which is recognized as current gain and loss, the variations in fair value of sellable
financial assets is recognized as other comprehensive gain. When it is derecognized and transferred out, it is accounted into the
current gain/loss account.Dividends and interest income related to sellable financial assets are accounted into the current gain/loss
account.
Equity instrument investment without quotation in an active market and whose fair value cannot be reliably measured and derivative
financial assets that are linked to the equity instrument and that need to be settled through delivery of the equity instruments are
measured by costs.
(3) Classification and measurement of financial liabilities
The Group’s financial liabilities are mainly other financial liabilities
Other financial liabilities adopt the effective interest method and are further measured by amortized cost. Gain/loss generated at final
recognition or amortization is accounted into the current gain/loss account.
Differences between financial liabilities and equity instruments
Financial liabilities is liabilities that meet one of the following conditions:
(1) contractual obligation to deliver cash or other financial assets to other parties.
(2) under potential adverse conditions, the contractual obligation to exchange financial assets or financial liabilities with other
parties.
(3) In the future, a non-derivative instrument contract that can be settled with the company's own equity instruments will be used, and
the company will deliver a variable amount of its own equity instruments based on the contract.
(4) Derivatives contracts that may be settled with the company's own equity instruments or may be settled in the future, except for a
derivative contract that exchanges a fixed amount of its own equity instruments for a fixed amount of cash or other financial assets.
Equity instruments refer to contracts that prove the ownership of a company’s remaining equity in assets after deducting all
liabilities.
If the Group cannot unconditionally avoid the performance of a contractual obligation by delivering cash or other financial assets, the
contractual obligation is in line with the definition of a financial liability.
If a financial instrument is required to be settled with or can be settled with the Group's own equity instruments, the Group'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 Group; if it is the latter, the instrument is the equity instrument of the Group.
(4) Derivative financial instruments and embedded derivatives
The Group's derivative financial instruments include futures contracts. It is initially measured at the fair value at the date of signing
the derivative transaction contract and is subsequently measured at its fair value. Derivative financial instruments with a positive fair
value are recognized as asset, and instruments with a negative fair value are recognized as liabilities. Any gains or losses arising from
changes in fair value that do not meet the hedge accounting requirements are directly charged to profit or loss for the current period.
For hybrid instruments containing embedded derivatives, if there are no financial assets or financial liabilities that are not designated
as measured at fair value and their changes are recorded as profit or loss for the current period, there is no close relationship between
the embedded derivatives and the principal contract in terms of economic characteristics and risks with same conditions as embedded
derivatives, the separately existing tools are in accordance with the definition of the derivatives, the embedded derivatives are split
from the hybrid tools and processed as separate derivative financial instruments. If it is not possible to separately measure the
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embedded derivative instrument at the time of acquisition or on the subsequent balance sheet date, the entire hybrid instrument is
designated as financial asset or financial liabilities that are measured at its fair value and whose changes are recorded as profit or loss
for the current period.
(5) Fair value of financial instrument
See Note III. 10 for the recognition of fair value of financial assets and liabilities.
(6) Impairment of financial assets
Financial assets measured at fair value with variations accounted into current income account. The Group checks the book value of
financial assets on the balance sheet date. Impairment provision will be made in case of objective evidence proving impairment to the
financial assets. Objective evidence proving impairment to the financial assets refers to events actually occur after the initial
recognition of financial assets, with influence on the estimated future cash flows of the financial assets and can be reliably measured
by the Group.
Objective evidence proving impairment to the financial assets includes the following observable situations:
①Severe financial difficulties in the issuer or debtor;
② The debtor violates the contract or defaults or delays the payment of the interest or principal;
③ The Group makes compromise to the debtor with financial difficulties due to economic or legal consideration;
④ The debtor may go bankruptcy or conduct other financial reorganization;
⑤ The financial assets can no longer be traded in an active market due to material financial difficulties in the issuer;
⑥ It cannot be recognized whether the cash flow of an asset in a group of financial assets has decreased. However, according to
open data, it can be evaluated that the estimated future cash flow of the group of financial assets has decreased and the decrease can
be measured, including:
- The payment capacity of the debtor of the financial assets continues weakening;
- Situations that may lead to the payment failure of the financial assets happen in the country or region where the debtor is
located;
⑦Significant adverse changes occurs to the technical, market, economic or legal environment of the debtor, leading to that the equity
instrument investor may not be able to recover the investment;
⑧Other objective evidence that can prove the impairment of the financial assets
Financial assets measured at amortized cost
If there is objective evidence proving impairment to the financial assets, the book value of the financial assets will be written down to
the present value of the estimated future cash flow (excluding undiscovered future credit loss). The write-down amount is accounted
into the current gain/loss account. The present value of the estimated future cash flow is determined by the original effective discount
rate with the value of the guanrantee considered.
Conduct imparement test separately for major financial assets. If there is objective evidence suggesting impairement, determine the
impairment loss and account it into the current gain/loss account. For financial assets with insignificant single amounts, impairment
tests are conducted separately or included in the portfolio of financial assets with similar credit risk characteristics. Test financial
assets without impairment separately (including major and minor financial assets) and conduct impairment test in the financial assets
combination with similar credit risk features. Conduct impairment test for financial assets separately recognized as impaired
excluding financial assets combination with similar credit risk features.
After the Group recognizes impair loss to financial assets measured by amortized cost, if there is object evidence suggesting that the
value of the financial assets is restored objectively due to an event after the loss, the recognized impairment loss can be reversed and
accounted into the current gain/loss account. The book value after the reversal must not exceed the amortized cost of the financial
assets on the reversal date assuming that no impairment provision was made.
(7) Transfer of financial assets
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The transfer of financial assets refers to transferring or delivering the financial assets to another party (receiver) other than the issuing
party of the financial assets.
Recognition of the financial asset is terminated as soon as all of the risks and rewards attached to the financial asset have been
transferred to the receiver. Whereas if all of the risks and rewards attached to the financial assets are reserved, recognition of the
financial asset shall not be terminated.
When the Group neither transfers nor reserve almost all risks and rewards attached to the financial assets, it will be handled as: When
the controlling power over the financial asset is given up, the financial assets will be derecognized and the generated assets and
liabilities will be recognized; when the controlling power is not given up, financial asset and related liability shall be recognized
according to the extend the Company is involving in the financial asset.
(8) Deduction of financial assets and liabilities
When the Group has the legal right to deduct recognized financial assets and liabilities, can exercise the legal right, and the Group
plans to settle them in net, liquidate and repay the financial assets and liabilities, the amount after the deduction will be presented in
the balance sheet. Exception for the deducted part, other financial assets and liabilities are separately presented in the balance sheet.
10. Receivable note and accounts receivable
(1) Receivables with major individual amount and bad debt provision provided individually
For the current year, the Company recognizes project receivables
and receivable notes of over RMB10 million (inclusive) as
―individual receivable with large amount‖ while recognizes
Judging basis or standard of major individual amount product receivables and receivable notes of over RMB2 million
(included) as ―individual receivable with large amount‖ and other
receivables over RMB1 million (included) as ―individual
receivable with large amount‖.
The Company performs impairment examination individually on
each large amount receivables, and recognizes impairment and
Provision method for account receivable with major individual provides bad debt provision when the impairment is recognized
amount and bad debt provision provided individually based on objective evidence. Those not impaired are accounted
along with the minor amount receivables and recognized in risk
groups.
(2) Recognition and providing of bad debt provisions on groups
Group Method of bad debt provision
Account age Aging method
Receivables within consolidation, receivables of real estate
property sold with bank mortgage and accounts and receivable Other method
notes between the Company and partners
Note: According to the name of the specific combination, fill in the bad debt provision accrual method for each combination.
Receivables adopting the aging method in the group:
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√ Applicable □ Inapplicable
Age Providing rate for receivable account Providing rate for other receivables
Within 1 year (inclusive) 1.00% 3.00%
1-2 years 5.00% 10.00%
2-3 years 20.00% 30.00%
3-4 years 30.00% 50.00%
4-5 years 50.00% 80.00%
Over 5 years 100.00% 100.00%
Receivables adopting the balance percentage method in the group
□ Applicable √ Inapplicable
Group Providing rate for receivable account Providing rate for other receivables
Receivables adopting other methods in the group
□ Applicable √ Inapplicable
Group Providing rate for receivable account Providing rate for other receivables
Note: Fill in the specific combination name and accrual ratio.
(3) Receivables with not major individual amount and bad debt provision provided individually
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.6 – Listed Companies Engaged in Decoration Business.
Reasons for separate bad debt provision Long account age or deterioration of customer creditability
According to the difference between the present value of future
Method of bad debt provision
cash flow and the book value
11. Inventories
Whether the Company needs to comply with disclosure requirements of special industries
Yes
Property development and decoration industries
(1) Classification of inventories
The Company’s inventories include purchased materials, raw materials, low-value consumables, OEM materials, products in process,
semi-finished goods, finished goods, inventory, development products, and construction in process.
(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.
Construction contracts are measured by the effective cost, including direct and indirect expenses generated before the contracts are
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fulfilled. Costs generated and recognized accumulatively by construction in process and settled payment are listed in the balance
sheet as offset net amounts.The excessive part of the sum of the generated costs and recognized gross profit (loss) over the settled
payment is listed inventories; the excessive part of the settled payment over the sum of the generated costs and recognized gross
profit (loss) is listed as the prepayment received.
Travel and bidding expenses generated by execution of contracts, if they can be separated and reliably measured and it is likely to
enter into contracts, are accounted as the contract cost when the contracts are entered into; or into the current gain/loss account if the
conditions are not met.
The development costs 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) Recognition of inventory realizable value and providing of impairment provision
The realizable net value of inventory is the estimated sales prices of the inventory less costs to be incurred until the completion,
estimated sales expense and taxes. 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.
If the inventory cost is higher than the realizable net value on the balance sheet date, the inventory depreciation provision should be
made. The Group makes inventory depreciation provision for separate or a type of inventory. If factors affecting the inventory value
disappear on the balance sheet date, the depreciation provision made should be reversed to the original value.
(4) Inventory system
The Group uses perpetual inventory system.
(5) Amortizing of low-value consumables and packaging materials
Low-value consumables are amortized on on-off amortization basis at using.
12. 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) Recognition of initial investment costs
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 the investment costs; for long-term equity investment obtained by merger of enterprises not under
common control, the merger cost is the investment cost.
For long-term equity investment obtained by cash, the actually paid consideration is the initial investment cost.
(2) Subsequent measurement and recognition of gain/loss
Investments by the Company in subsidiaries are calculated using the cost method; in joint ventures are calculated using the equity
method.
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
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investment gains in the current gain/loss account.
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 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. The difference between the fair value and book value of the original equity on the conversion date and the accumulative
change in the fair value originally accounted in other misc. income should be transferred into the profit and loss of the current period
using the equity method.
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.
Where the disposal of part of the equity investment leads to loss of control on the invested entity, and the remaining equity after the
disposal can impose common control or significant impacts on the invested entity, use the equity method and make adjustment as if
the equity method was used when the remaining equity was acquired. If not, perform accounting treatment according to provisions in
the Enterprise Accounting Standard No.22 – Recognition and Measurement of Financial Tools. The difference between the fair value
and book value on the date of losing control should be transferred into the profit and loss of this period.
Where the Company’s shareholding decreases and the Company loses the control due to increased investment by another investor,
but the Company can still impose common control or significant impacts on the invested entity, the share of increased net assets of
the invested entity that can be shared by the Company should be calculated based on the new shareholding, the difference between
the net assets and original book value of the original long-term equity investment should be recorded in the profit and loss of this
period and adjusted as if equity method was used when it was acquired according to the new shareholding proportion.
Internal transaction gain not realized between the Company and affiliates is measured according to the shareholding proportion and
the investment gains isrecoginzied 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.
(3) Basis for recognition of major influence on invested entities
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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.
When Company directly or indirectly holds 20% (inclusive) but less than 50% of the shares with voting rights of the invested entity,
it is generally considered that the Company can impose significant impacts unless there is clear evidence proving that the Company
shall not participate in the production and business decision making of the company; when the Company holds less than 20% of the
shares with voting rights, it is generally not considered that the Company has significant impacts on the invested entity, unless there
is clear evidence proving the contrary.
(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.
(5) Impairment examination and providing of impairment provision
See Note V. 18 for the assets impairment provision method for investment in subsidiaries and joint ventures.
13. Investment real estates
Measuring mode of investment real estate
Measured at cost
Depreciation or amortization method
Investment real estates of the Group are buildings leased.
For investment real estates with an active real estate transaction market and the Group can obtain market price and other information
of same or similar real estates to reasonably estimate the investment real estates’ fair value, the Group 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 estate 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.
The difference of the proceeds from sales, transfer, retirement or destruction of investment real estates with book value and related
taxes deducted is accounted into the current gain/loss account.
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Investment real estate that use the cost method for further measurement adopt the straight-line depreciation provision method. See
Note V. 18 for the provision method.
14. 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.The fixed assets can only be recognized hen
economic interests related to the fixed assets are very likely to flow into the company and the costs of the fixed assets can be reliably
measured. The Group measures fixed assets at the actual costs when the fixed assets are obtained
(2) Depreciation method
Annual depreciation
Type Depreciation method Service year Residual rate
rate %
Houses & buildings Average age 35-50 10% 1.8%-2.57%
Mechanical equipment Average age 10 10% 9%
Transportation facilities Average age 5 10% 18%
Electronics and other
Average age 5 10% 18%
devices
PV power plants Average age 20 5% 4.75%
15. Construction in process
Whether the Company needs to comply with disclosure requirements of special industries
Yes
Property development and decoration industries
The Group recognizes the cost of construction in process according to the actual construction expense, including necessary
engineering expenses, borrowing costs to be capitalized before the engineering reaches the preset service condition and other related
costs.
Construction in process will be transferred to fixed assets when it reaches the preset service condition.
See Note V. 18 for the provision method for construction in process.
16. Borrowing expenses
(1) Recognition principles for capitalization of borrowing expenses
Borrowing expenses occurred to the Group that can be accounted as purchasing or production of asset satisfying the conditions of
capitalizing, are capitalized and accounted as cost of related asset.Borrowing expenses start to be capitalized when all of the
followings are satisfied:
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(1) Asset expense has already occurred. Asset expenses include cash payment, non-cash asset transferring, or undertaking of debt
with interest done for purchasing or producing of assets;
(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.
(2) During borrowing expense capitalization
When the asset satisfying the capitalizing conditions has reached its usable or sellable status, capitalizing of borrowing expenses shall
be terminated. Borrowing expenses incurred after assets that meet capitalization conditions reach the service or sales conditions are
accounted into the current gain/loss account according to the actual amounts.
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.
(3) 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. The capitalization ratio is the weighted average interest rate of general borrowings.
In the capitalization period, the exchange difference of special borrowings in foreign currencies should be fully capitalized. The
exchange difference should be recorded in the profit and loss of this period.
17. Intangible assets
(1) Pricing method, service life and depreciation test
The Group’s intangible assets include land using rights, trademarks, patent, special technologies, and software.
Intangible assets are initially measured at costs and the useful life will be determined when obtained. Where the useful life is limited,
the intangible assets will be amortized within the predicted useful life by using the amortization method that can reflect predicted
realization way of the economic benefit of the assets; whether the realization way cannot be reliably confirmed, use the straight-line
method. If the useful life is uncertain, the intangible assets are not amortized.
Intangible assets with limited useful life are amortized as followings:
Type Useful life Basis of amortization
Land using right Beneficial age Average age
Trademarks and patents 10 Average age
Proprietary technology 10 Average age
Software 5, 10 years Average age
At the end of each year, the Group will reexamine the useful life and amortization basis of intangible assets with limited useful life. If
they change, adjust the prediction and handle it according to accounting estimate changes.
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On the balance sheet day, if the intangible assets become unlikely to bring future economic benefits for the Group, transfer all the
intangible assets’ book value into the current gain/loss account.
See Note V. 18 for the impairment provision method for intangible assets.
(2) Accounting policies for internal R&D expenses
The Group divides internal R&D project expenses into research and development expenses.
The research expenses are accounted the current gain/loss account.
Development expenses can only be capitalized when the following conditions are satisfied: the technology is feasible for use or sales;
there is the intention to use or sell the intangible assets; it can be proven that the product generated by the intangible assets is
demanded or the intangible assets in demanded; if the intangible is used internally, it can be proven that it is useful; with necessary
technical and financial resources and other resources to complete the development of the intangible assets and the intangible assets
can be used or sold; the development expense can be reliably measured. If not, the development expense is accounted into the current
gain/loss account.
If a research project meets the above-mentioned conditions and passes the technical and economic feasibility study, the project will
enter the development stage.
Expenses in the development stage capitalized are listed as development expense on the balance sheet and transferred to intangible
assets when the project reaches the useful condition.
18. Assets impairment
The Group uses the cost mode to continue measuring the assets impairment to investment real estatement, 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 Group judges whether there is a sign of impairment to assets on the balance sheet day. If such sign exists, the Group 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 Group 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 Group 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
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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 Group.
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.
19. Long-term amortizable expenses
The Group’s long-term amortizable expenses are measured at the actual costs and amortized averagely based on the beneficial term.
For long-term amortizable expenses that are not beneficial in the subsequent account periods, the residual value is fully accounted
into the current gain/loss account.
20. Staff remuneration
(1) Accounting of operational leasing
The Group pays for the medical insurance, job injury insurance and breeding insurance and housing fund according to employees’
wages and bonus and recognizes them as liabilities, which are recorded into the profit and loss or related assets costs in the current
period. If the liabilities cannot be fully paid within 12 months upon the end of the report period in which the employees provide
service, and the financial impacts are substantial, the liabilities should be measured at the discounted amount.
(2) Accounting of post-employment welfare
The post-employment welfare of the Group is a defined plan, which means that the Company does not need to assume any
responsibility after making fixed contribution to an independent fund. The defined plan includes basic pension and unemployment
insurance. The contribution of the plan is recognized as liabilities and recorded in the profit and loss of this period or related assets
costs.
(3) Accounting of dismiss welfare
Where the Group provides dismiss welfare for employees, the staff remuneration liabilities is recognized on the earlier one of the
following two date: when the Group cannot cancel the dismiss welfare provided for termination of employment or layoff; when the
Group recognizes the costs or expenses of reorganization related to the payment of dismiss welfare.
21. 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:
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(1) This responsibility is a current responsibility undertaken by the Group;
(2) Execution of this responsibility may cause financial benefit outflow from the Group;
(3) Amount of the liability can be reliably measured.
Expected liabilities are initially measured at the best estimation on the expenses to exercise the current responsibility. The book value
of expected liability is revised at balance sheet day, and adjustment will be made to reflect current best estimation.
22. Revenue
Whether the Company needs to comply with disclosure requirements of special industries
Yes
Property development and decoration industries
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.2 – Listed Companies Engaged in Solid Mineral Resources Related Business.
(1) General principles
1. Sales of goods
When all of the following conditions are satisfied, the sales of goods are recognized as sales income according to the contract amount
received or receivable from the buyer: (1) Main risks and rewards attached to the ownership of the goods have been transferred to the
buyer; (2) No succeeding power of administration or effective control is reserved which are usually attached to ownership; (3)
Amount received can be reliably measured; (4) Related financial benefit may inflow to the Company; (5) Relative costs, occurred or
will occur, can be reliably measured.
2. Providing of labor service
If they are not in the same year, then use the estimation on percentage basis when it is possible.
The completion percentage is the costs occurred on the total cost.
The reliable estimation of the result of providing of labor service must meet the following conditions: A. the revenue can be reliably
measured; B. the economic benefit is very likely to flow into the company; C. the completion can be determined reliably; D. costs
incurred or will be incurred can be reliably measured.
If the result cannot be reliably estimated, use the service cost amount of the compensation obtained or will be obtained to recognize
the revenue of the providing of labor service and recognize the incurred laber service cost as the current expense. If no compensation
can be obtained for incurred labor service cost, no revenue can be recognized.
3. Demising of asset using rights
The revenue is recognized when the financial benefit in connection with the demising of asset using right was received and the
amount can be reliably measured.
4. Construction contracts
On the balance sheet day, the Group recognizes the contract income and costs using the completion percentage method if the result of
the construction contract can be reliably estimated. If not, such contracts are treated differently. If the contract cost can be recovered,
the revenue is recognized according to the actual contract costs that can be recovered and the contract cost is recognized as the
current expense; if not, the contract cost is recognized as the current expense and no revenue is recognized.
If the estimated total costs exceed the total revenue, the Group recognizes the estimated loss as the current expense.
The competition percentage is determined by the share of the costs incurred in the total cost.
The reliable estimation of the result of a construction contract must meet the following conditions: A. the revenue can be reliably
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measured; B. the economic benefit is very likely to flow into the company; C. the completion cost can be clearly distinguished and
determined reliably; D. the completion and costs that will be incurred for completion of the contract can be reliably recognized.
(2) Specific revenue recognition method
① Construction contracts
Metro screen door projects of the Company and Shenzhen Fangda Automatic System, and curtain wall project of FangdaJianke are
individual construction contracts. They are accounted by the following means:
Construction contracts completed within a fiscal year are recognized for their income and cost upon completion.
Income and expenses of the construction contracts carried over-year are recognized on percentage basis at balance sheet day when all
of the following conditions are satisfied: contract income can be reliably measured, relative financial benefit can inflow to the
Company; progress of the project and costs to complete the contract can be reliably recognized; cost occurred to complete the
contract can be clearly distinguished and reliably measured, which enables comparing of actual cost with predicted cost.
Contract costs are direct and indirect expenses occurred since the date when the contract is engaged till the completion day. The
competition percentage is determined by the share of the costs incurred in the total cost.
Construction contracts completed in current term are recognized for income according to the actual total income of the contract less
income recognized in previous terms; meanwhile, the total costs of the contract less costs recognized in previous terms are
recognized as current contract costs. If the total contract cost is predicted to be greater than the predicted total income, the predicted
loss shall be recognized as current cost instantly.
Parts of the curtain wall project under FangdaJianke are outsourced, and administrative fees are collected at the agreed rate. For these
construction contracts, income will be recognized when ongoing payment for the project is received and corresponding costs are
transferred.
② Sales product
Revenue of products for domestic sales is recognized when the Group delivers the products and receives the sales payment or obtains
the payment voucher; revenue for products for overseas sales is recognized at departure of the products.
③ Real estate sales
Income from real estate sales is recognized when the contract is signed and performed, project is developed and completed with the
record for the completion acceptance, the handover procedure is completed or property is deemed accepted by the customer as per
the property sales contract, the payment is received or it is believed that the payment can be received, and the cost can be measured
reliably.
23. Government subsidy
(1) Judgment basis and accounting treatment of assets-related government subsidy
Government subsidy is only recognized when the required conditions are met and the subsidy is received.
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.
Government subsidies related to assets are obtained by the Group to purchase, build or formulate in other manners long-term assets;
or subsidies related to benefits.
For subsidies that can formulate long-term assets without clear government regulations, the part of the subsidies corresponding to the
asset value will be measured as assets-related government subsidies, while the rest of them will be measured as benefit-related
government subsidies. Where it is difficult to distinguish them from each them, the whole subsidies will be measured as
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benefit-related government subsidies.
If the asset-related government subsidy is recognized as deferred gain, should be recorded in gain and loss in the service life.
(2) Judgment basis and accounting treatment of return-related government subsidy
If a government subsidy related to income is used to compensate for related costs or losses that have occurred, it shall be included in
the current profit or loss or write-down related costs; if it is used to compensate for the related costs or losses in the subsequent
period, it shall be included in the deferred income. During the period in which the related cost, expense or loss is recognized, it is
included in the current profit or loss or the relevant cost is written off. Government subsidy measured at the nominal amount is
accounted into current income account.The Group adopts a consistent approach to the same or similar government subsidies.
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.
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.
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.
24. Differed income tax assets and differed income tax liabilities
Income tax includes current and deferred income taxExcept 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 Group 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.
The taxable temporary difference recognizes the related deferred income tax liabilities, unless the taxable temporary difference is
created by the following transactions:
(1) Initial recognition of goodwill, or of assets or liabilities generated in transactions with the following features: the transaction is
not a merger and the transaction does not affect the accounting profit or taxable proceeds;
(2) For taxable temporary difference related to investment in subsudiaries and affiliates, the reversal timing for the temporary
difference can be controlled and the difference is unlikely to be reversed in the foreseeable future.
For deductible temporary difference, deductible loss and tax deduction that can be accounted in subsequent years, the Group
recognizes the incurred deferred income tax assets to the extent to the future income tax proceeds that is very likely to be received for
deducting deductible temporary difference, deductible loss and tax deduction, unless the deductible temporary difference is generated
in following transactions:
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(1) the transaction is not a merger and the transaction does not affect the accounting profit or taxable proceeds;
(2) for the taxable temporary difference related to investment in subsidiaries and affiliates, the corresponding deferred income tax
assets are recognized when the following condition is met: the temporary difference is very likely to be reversed in the foreseeable
future and it is very likely to receive the taxable proceeds that can be used to deduct the deductible temporary difference.
On the balance sheet day, the Group measures the deferred income tax assets and liabilities with the tax rate applicable during the
predicted period during which the assets are recovered or the liabilities are paid off and reflects the income tax influence of the assets
recovery and liabilities repayment way on the balance sheet day.
On the balance sheet day, the Group re-exmaines the book value of the deferred income tax assets. If it is unlikely to have adequate
taxable proceeds to reduct 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.
25. Leasing
(1) Accounting of operational leasing
The Group transfers all the risks and rewards attached to the asset at substantially transferred to the lessee, it is recognized as
financial leasing, and the others are operational leasing. The Group's lease forms are mainly operating leases.
(1) The Group is the leasor
Rentals from operational leasing are recognized as current gains on straight basis to the periods of leasing. Initial direct expenses are
recorded to current income account.
(2) The Group is the leasee
Rentals in operational leasing are recorded to relative capital cost or current income account on straight basis to the periods of leasing.
Initial direct expenses are recorded to current income account.
26. Other significant accounting policies and estimates
The Group continuously reviews significant accounting judgment and estimate adopted for the reasonable forecast of future events
based on its historical experience and other factors.
Significant accounting judgment and assumptions that may lead to major adjustment of the book value of assets and liabilities in the
next accounting year are listed as follows:
(1) Goodwill impairment
The Group judges whether there is impairment to goodwill at least annually. This required valuation of the use value of the asset
groups with goodwill. While estimating the use value, the Group needs to estimate the cash flow from the asset group in the future
and choose the proper discount rate to calculate the present value of the future cash flow.
(2) Estimate of fair value
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The Group uses fair value to measure investment real estate and needs to estimate the fair value of investment real estate at least
quarterly. This requires the management to reasonably estimate the fair value of the investment real estate with the helf of valuation
experts.
(3) Deferred income tax assets
If there is adequate taxable profit to deduct the loss, the deferred income tax assets should be recognized by all the unused tax loss.
This requires the management to make a lot of judgment to forecast the time and amount of future taxable profit and determine the
amount of the deferred tax assets based on the taxation strategy.
(4) Construction contracts
The Group recognizes income based on the completion of individual construction contract. The management determines the
completion percentage based on the actual cost in the total budget and forecasts the contract income. The starting and completion
dates of construction contracts fall in different account periods. The Group will review and adjust contract income and cost
estimation in budgets (if the actual contract income is less than the estimate or actual contract cost, contract estimation loss provision
will be made).
(5) 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.
(6) Accounting of hedging
When the hedge relationship begins, the Group specifies the hedge relationship in writing to specify the follow: risks management
target and hedging strategy; nature of the hedged item and quantity; nature and quantity of hedging instruments, nature and
identification of hedged risks; evaluation of the hedging effectiveness, including the economic relationship between the hedged item
and hedging instrument, hedging ratio, analysis of the hedging ineffectiveness source; the beginning date of the specified hedging
relationship.
Cash flow hedging
During the existence of the hedging relationship, the part of the cumulative gain or loss of the hedging instrument within the change
to the current value of the cumulative cash flow of the hedged item is included into other misc. incomes. The part that is lower or
larger than the cash flow change is included into the gain or loss of the current period.
When the hedging relationship ends and related inventory is recognized, the hedging instrument gain or loss recognized in ―Other
misc. income hedging reserve‖ will be transferred to ―Raw materials‖.
27. Major changes in accounting policies and estimates
(1) Changes in accounting policies
√ Applicable □ Inapplicable
Account policy changes and reasons Approval procedure Notes
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According to the Notice of the Ministry of
Finance on Revising the Format of the
2018 Annual General Financial Statements
of the Company (Accounting 2018 No. 15)
the original "Announceable Notes" and
"Accounts Receivable" line items will be
consolidated into the "balance sheet" in the
balance sheet. "Notes receivable and
accounts receivable"; the original
"receivable interest" and "dividends
receivable" items are merged into "other
receivables"; the original "fixed assets
clean-up" items are merged into "fixed
assets"; the original "engineering material"
item will be merged into "construction in
progress"; the original "payable bills" and
"payables" items will be consolidated into
"payable bills payables and accounts
payable" items; the original "payable
interest" and "payable dividend" will be
merged into "other receivables"; the
th th
original "special payables" item is merged 13 meeting of the 8 Supervisory
into "long-term payables". In the income Committee
statement the "R&D expenses" are
separated from the original "administrative
expenses"; under the "finance expenses"
line item the "interest expense" and
"interest income" detailed items are
separately listed; the original
"re-measurement setting benefits" The
change of the plan net debt or net assets is
replaced by the "re-measurement of the
change in the defined benefit plan"; the
original "share under the equity method
that cannot be reclassified into other
comprehensive income of the investee and
the profit and loss" is changed to "equity".
Other comprehensive income that cannot
be transferred to profit or loss under the
law"; the original share of the other
comprehensive income that is reclassified
into profit or loss after the investee is
changed to the other comprehensive
income of the convertible profit and loss
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under the equity method. In the statement
of changes in owner's equity under the
"internal transfer of shareholders' equity",
item the original "transfer re-measurement
of changes in net liabilities or net assets of
defined benefit plans" was changed to
"transfer of retained profit from change in
set benefit program".
The revision of the financial statement format has no impact on the Group's total assets total liabilities, net profit and other
comprehensive income.
VI. Taxation
1. Major taxes and tax rates
Tax Tax basis Tax rate
3%、5%、6%、10%、11%、13%、16%、
VAT Taxable income
17%
Consumption tax
City maintenance and construction tax Taxable turnover 1%、5%、7%
Enterprise income tax Taxable turnover 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 FangdaJianke Co., Ltd. (hereinafter FangdaJianke) 15%
Shenzhen Fangda Automatic System Co., Ltd. (hereinafter
15%
Fangda Automatic)
Fangda New Material (Jiangxi) Co., Ltd. (hereinafter Fangda
15%
New Material)
Dongguan Fangda New Material Co., Ltd. (hereinafter
15%
Dongguan New Material)
Shenzhen Kexunda Software Co., Ltd. (hereinafter Kexunda) 25%
Chengdu Fangda Construction Technology Co., Ltd. (hereinafter
15%
Chengdu Fangda)
Fangda Decoration Engineering (Shenyang) Co., Ltd.
25%
(hereinafter Shenyang Decoration)
Shenzhen Fangda Property Development Co., Ltd. (hereinafter 25%
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方大集团股份有限公司 2018 年年度报告全文
Fangda Property Development)
Shenzhen Fangda New Energy Co., Ltd. (hereinafter Fangda
25%
New Energy)
Shenzhen Fangda Property Development Co., Ltd. (hereinafter
25%
Fangda Property Development)
Jiangxi Fangda Property Development Co., Ltd. (hereinafter
25%
Jiangxi Property Development)
PingxiangFangdaLuxin New Energy Co., Ltd. (hereinafter Luxin
25%
New Energy)
PingxiangXiangdongFangda New Energy Co., Ltd. (hereinafter
25%
Xiangdong New Energy)
Nanchang Xinjian Fangda New Energy Co., Ltd. (hereinafter
25%
Xinjian New Energy)
Dongguan Fangda New Energy Co., Ltd. (hereinafter Dongguan
25%
New Energy)
Shenzhen QIanhaiKechuangyuan Software Co., Lt.d (hereinafter
15%
Kechuangyuan Software)
Fangda Automatic (Hong Kong) Co., Ltd. (hereinafter
16.50%
Automation Hong Kong)
Shihui International Holding Co., Ltd. (hereinafter Shihui
16.50%
International)
Shenzhen Hongjun Investment Co., Ltd. 25%
Fangda Australia Pty Ltd (hereinafter Jianke Australia) 30%
Shanghai Fangda Jingling Technology Co., Ltd. (hereinafter
25%
Jingling Technology)
Shenzhen Fangda Cloud Rail Technology Co., Ltd. (hereinafter
25%
Fangda Cloud Rail)
2. Tax preference
(1) According to the Certification of High-tech Enterprise issued by Shenzhen Commission of Technological Innovation, Shenzhen
Commission of Finance, Shenzhen National Tax Bureau, and Shenzhen Local Tax Bureau on 19.06.15, FangdaJianke was entitled to
enjoy a tax preference of enterprise income tax of 15% for three years (2015-2017) since the qualifications were awarded.
(2) According to the Certification of High-tech Enterprise issued by Shenzhen Commission of Technological Innovation, Shenzhen
Commission of Finance, Shenzhen National Tax Bureau, and Shenzhen Local Tax Bureau on 19.06.15, Fangda Decoration was
entitled to enjoy a tax preference of enterprise income tax of 15% for three years (2015-2017) since the qualifications were awarded.
(3) According to the Certification of High-tech Enterprise issued by Jiangxi Ministry of Science and Technology, Jiangxi Ministry of
Finance, Jiangxi National Tax Bureau, and Jiangxi Local Tax Bureau on 25.09.15, Fangda New Material was entitled to enjoy a tax
preference of enterprise income tax of 15% for three years (2015-2017) since the qualifications were awarded.
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(4) On December 25, 2013, Kexunda was certified by Shenzhen Nanshan National Tax Bureau as a software and integrated circuit
designer according to the Shenzhen National Tax Reduction Registration [2013] No.739 and will enjoy exemption from the
enterprise income tax for two years and 50% reduction of the same tax for another three years from the year that the company starts
making a net profit. Kexunda started making profits in 2013 and therefore starts to enjoy the exemption. Kexunda entered the
semi-exemption period in 2015.
(5) On November 7, 2014, Chengdu Fangda was certified by Sichuan Xinjin National Tax Bureau as an encourage industry company
in the west China (Xin Jin National Tax Doc. [zzy024]) and started to enjoy a tax rate of 15%.
(6) On 02.11.15, Dongguan New Energy was certified by Dongguan National Tax Bureau Songshanhu branch as the national
supported public infrastructure project according to the Song Shan Hu Tax Doc [2015] 3305. The company is exempted from
enterprise income tax for three years and halfly exempted for another three years. In 2015, the company entered the exemption
period.
(7) On 02.03.16, according to the document issued by Luxi National Tax Bureau, the PV power generation project undertaken by
PingxiangFangdaLuxin New Energy Co., Ltd, became the infrastructure project supported by the central government. The company
enjoys a three-year enterprise income tax relief and 50% reduction for another three years. In 2016, the company entered the
exemption period.
(8) On 02.06.16, according to the document issued by Nanchang Xinjian District National Tax Bureau, the PV power generation
project undertaken by subsidiary Xinjian New Energy Company, became the infrastructure project supported by the central
government. The company enjoys a three-year enterprise income tax relief and 50% reduction for another three years. In 2016, the
company entered the exemption period.
(9) On 10.03.17, according to the registration to Shenzhen National Tax Bureau, subsidiary Kechuangyuan Software became a newly
established software and integrated circuit designing company and can enjoy the two-year full exemption and three-year
half-exemption of the enterprise income tax from the first year that the company records profit. Kexunda started making profits in
2016 and therefore starts to enjoy the exemption.
(10) According to the Certification of High-tech Enterprise issued by Guangdong Ministry of Science and Technology, Guangdong
Ministry of Finance, Guangdong National Tax Bureau, and Guangdong Local Tax Bureau on 25.09.15, Dongguan New Material was
entitled to enjoy a tax preference of enterprise income tax of 15% for three years (2016-2018) since the qualifications were awarded.
Note: Explain the main tax incentives and the basis.
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.12 – Listed Companies Engaged in Software And Information Technology Services.
Note: Disclose the tax incentives enjoyed by the company during the reporting period such as software VAT refunds and the impact
of relevant tax incentives on the company's current profit and loss.
VII. Notes to the consolidated financial statements
1. Monetary capital
In RMB
Item Closing balance Opening balance
130
方大集团股份有限公司 2018 年年度报告全文
Inventory cash: 5,167.01 42,636.09
Bank deposits 994,706,369.72 923,163,199.39
Other monetary capital 394,350,547.03 257,192,644.03
Total 1,389,062,083.76 1,180,398,479.51
Including: total amount deposited in
25,269,577.35 24,527,445.09
overseas
Other note
Note: 1. The book balance of other monetary funds at the end of the period is RMB394,350,547.03 mainly including money deposits
such as money order deposits, stage deposit guarantees guarantee, letters deposits of investment funds and repurchase payments of B
shares.
(2) The deposit and frozen deposit shall not be treated as cash and cash equivalent in the preparation of cash flow statements.
3. At the end of the period, the Group's total amount deposited abroad was RMB25,269,577.35.
2. Financial assets measured at fair value with variations accounted into current income account
In RMB
Item Closing balance Opening balance
None
Others:
3. Derivative financial assets
√ Applicable □ Inapplicable
Item Closing balance Opening balance
None
Total
Others:
4. Receivable note and accounts receivable
In RMB
Item Closing balance Opening balance
Notes receivable 140,139,692.84 39,636,437.20
Account receivable 1,920,075,031.85 1,920,372,426.16
Total 2,060,214,724.69 1,960,008,863.36
(1) Notes receivable
1) Classification of notes receivable
In RMB
131
方大集团股份有限公司 2018 年年度报告全文
Item Closing balance Opening balance
Bank acceptance 6,000,000.00 12,376,780.96
Commercial acceptance 134,139,692.84 27,259,656.24
Total 140,139,692.84 39,636,437.20
2) The Group has no endorsed or discounted immature receivable notes at the end of the period.
In RMB
Item De-recognized amount Not de-recognized amount
Bank acceptance 380,388,612.28
Commercial acceptance 31,828,098.96
Total 412,216,711.24
3) Notes transferred to accounts receivable due to default of the issue at the end of period
In RMB
Amount transferred to accounts receivable at the end of the
Item
period
Commercial acceptance 5,960,429.45
Total 5,960,429.45
Other note
There is no objective evidence that the Group’s bills receivable are impaired and no provision for impairment of bills receivable has
been accrued.
(2) Account receivable
1) Account receivable disclosed by categories
In RMB
Closing balance Opening balance
Remaining book Remaining book
Bad debt provision Bad debt provision
Type value Book value
Book value
Proportio Provision value Proportio Provision
Amount Amount Amount Amount
n rate n rate
Account receivable
with major individual
124,412, 124,412,
amount and bad debt 5.44% 100.00%
527.57 527.57
provision provided
individually
132
方大集团股份有限公司 2018 年年度报告全文
Recognition and 2,123,2
2,159,46 239,386, 1,920,075 202,895,9 1,920,372,4
providing of bad debt 94.45% 11.09% 68,342. 99.38% 9.56%
1,958.27 926.42 ,031.85 16.62 26.16
provisions on groups 78
Account receivable
with minor individual
2,624,62 2,624,62 13,339, 13,339,65
amount and bad debt 0.11% 100.00% 0.62% 100.00%
9.35 9.35 659.73 9.73
provision provided
individually
2,136,6
2,286,49 366,424, 1,920,075 216,235,5 1,920,372,4
Total 100.00% 16.03% 08,002. 100.00% 10.12%
9,115.19 083.34 ,031.85 76.35 26.16
51
Account receivable with major individual amount and bad debt provision provided individually at the end of the period:
√ Applicable □ Inapplicable
In RMB
Account recevable (by Closing balance
unit) Account receivable Bad debt provision Provision rate Reason
Customer credit status
Customer 1 54,442,394.96 54,442,394.96 100.00% deteriorates and is not
expected to be recovered
Customer credit status
Customer 2 21,801,697.06 21,801,697.06 100.00% deteriorates and is not
expected to be recovered
Customer credit status
Customer 3 15,239,752.83 15,239,752.83 100.00% deteriorates and is not
expected to be recovered
Customer credit status
Customer 4 23,857,146.77 23,857,146.77 100.00% deteriorates and is not
expected to be recovered
Customer credit status
Customer 5 9,071,535.95 9,071,535.95 100.00% deteriorates and is not
expected to be recovered
Total 124,412,527.57 124,412,527.57 -- --
In the group, the account receivable of which bad debt provision is made through the account aging method:
√ Applicable □ Inapplicable
In RMB
Closing balance
Age
Account receivable Bad debt provision Provision rate
Sub-item of within 1 year
Less than 1 year 1,082,115,648.39 13,065,923.26 1.21%
133
方大集团股份有限公司 2018 年年度报告全文
Subtotal for less than 1 year 1,082,115,648.39 13,065,923.26 1.21%
1-2 years 401,968,099.93 21,020,394.92 5.23%
2-3 years 436,756,513.66 71,350,948.10 16.34%
3-4 years 111,421,602.78 33,586,546.63 30.14%
4-5 years 53,720,020.01 26,883,040.01 50.04%
Over 5 years 73,480,073.50 73,480,073.50 100.00%
Total 2,159,461,958.27 239,386,926.42 11.09%
Group recognition basis:
Account receivable adopting the balance percentage method in the group
□ Applicable √ Inapplicable
In RMB
2) Bad debt provision made, returned or recovered in the period
A bad debt provision of RMB156,134,375.83 was made in the period. RMB1,090,673.03 was recovered or reversed.
(3) Written-off account receivable during the period
In RMB
Item Amount
Account receivable written off 4,855,195.81
4) Balance of top 5 accounts receivable at the end of the period
The total balance of top-five accounts receivable at the end of the period is RMB425,364,678.31, accounting for 18.60 % of the total
remaining balance of all accounts receivable. The bad debt provision made at the end of the period is RMB26,324,536.97.
5) Receivables derecognized due to transfer of financial assets
Gain or loss related to the
Item Way of transfer De-recognized amount
de-recognition
Customer 1 Factoring 18,251,388.31 -1,068,836.06
Customer 2 Factoring 25,042,803.45 -1,513,194.75
Customer 3 Factoring 840,775.56 -50,700.63
Customer 4 Factoring 11,040,000.00 -605,354.30
Customer 5 Factoring 3,368,796.73 -224,704.23
Customer 6 Factoring 42,213,084.55 -3,177,891.80
Customer 7 Factoring 607,394.44 -40,708.68
Customer 8 Factoring 2,783,273.27
Total 104,147,516.31 -6,681,390.45
5. Prepayment
(1) Account age of prepayments
In RMB
Age Closing balance Opening balance
134
方大集团股份有限公司 2018 年年度报告全文
Amount Proportion Amount Proportion
Less than 1 year 43,589,102.44 93.82% 45,346,974.64 82.93%
1-2 years 1,521,693.56 3.28% 7,891,890.96 14.43%
2-3 years 444,183.24 0.96% 679,375.39 1.24%
Over 3 years 899,865.50 1.94% 762,028.85 1.40%
Total 46,454,844.74 -- 54,680,269.84 --
Explanation of non-settlement of significant prepayments with an accounting age of more than 1 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 RMB20,943,782.68, accounting for 45.08 % of the total
prepayments at the end of the period.
Others:
6. Other receivables
In RMB
Item Closing balance Opening balance
Interest receivable 3,829,315.07
Other receivables 139,990,188.26 57,075,357.62
Total 139,990,188.26 60,904,672.69
Note: The other receivables in the above table refer to other receivables after deducting interest receivable and dividends receivable.
(1) Receivable interest
1) Receivable interest
In RMB
Item Closing balance Opening balance
Bank financial products 3,829,315.07
Total 3,829,315.07
Others:
(2) Other receivables
1) Other receivables disclosed by categories
In RMB
Closing balance Opening balance
Type Remaining book Book Remaining book
Bad debt provision Bad debt provision Book value
value value value
135
方大集团股份有限公司 2018 年年度报告全文
Proportio Provision Proportio Provision
Amount Amount Amount Amount
n rate n rate
Other receivables
with major individual
13,030,0 13,030,0 69,380, 69,380,54
amount and bad debt 7.20% 100.00% 48.04% 100.00%
00.00 00.00 548.52 8.52
provision provided
individually
(2) Recognition and
166,934, 26,944,7 139,990,1 74,563, 17,681,77 56,881,959.
providing of bad debt 92.29% 16.14% 51.62% 23.71%
905.77 17.51 88.26 729.50 0.19 31
provisions on groups
Other receivables
with minor individual
910,319. 910,319. 495,772 302,374.3
amount and bad debt 0.50% 100.00% 0.34% 60.99% 193,398.31
94 94 .63 2
provision provided
individually
180,875, 40,885,0 139,990,1 144,440 87,364,69 57,075,357.
Total 100.00% 22.60% 100.00% 60.49%
225.71 37.45 88.26 ,050.65 3.03 62
Other receivables with major individual amount and bad debt provision provided individually at the end of the period:
√ Applicable □ Inapplicable
In RMB
Other receivables (by Closing balance
entity) Other receivables Bad debt provision Provision rate Reason
Cannot be recovered
Luo Huichi 13,030,000.00 13,030,000.00 100.00%
because of insolvency
Total 13,030,000.00 13,030,000.00 -- --
In the group, the other receivables of which bad debt provision are made through the account aging method:
√ Applicable □ Inapplicable
In RMB
Closing balance
Age
Other receivables Bad debt provision Provision rate
Sub-item of within 1 year
Less than 1 year 111,956,747.01 3,358,702.39 3.00%
Subtotal for less than 1 year 111,956,747.01 3,358,702.39 3.00%
1-2 years 23,384,207.79 2,338,420.79 10.00%
2-3 years 4,963,977.00 1,489,193.10 30.00%
3-4 years 13,260,109.05 6,630,054.53 50.00%
4-5 years 1,207,591.07 966,072.85 80.00%
Over 5 years 12,162,273.85 12,162,273.85 100.00%
136
方大集团股份有限公司 2018 年年度报告全文
Total 166,934,905.77 26,944,717.51 16.14%
Group recognition basis:
Other receivables adopting the balance percentage method in the group:
□ Applicable √ Inapplicable
Other receivables adopting other methods in the group
□ Applicable √ Inapplicable
2) Bad debt provision made, returned or recovered in the period
A bad debt provision of RMB10,912,038.13 was made in the period. RMB1,002,086.51 was recovered or reversed.
3) Other receivable written off in the current period
In RMB
Item Amount
Other receivable written off 56,389,607.20
Including significant other receivable:
In RMB
Writing-off
Entity Nature Amount Reason Related transaction
procedure
SOZN in a business
state of suspension Approved by the
SOZN Debt 56,230,548.52 No
and the debt cannot senior management
be repaid
Total -- 56,230,548.52 -- -- --
Notes to written-off other receivables:
4) Other receivables are disclosed by nature
In RMB
By nature Closing balance of book value Opening balance of book value
Deposit 113,697,386.43 48,666,321.95
Construction borrowing and advanced
32,493,474.69 8,721,385.12
payment
Staff borrowing and petty cash 2,717,122.22 5,532,782.96
Receivable refund of VAT 1,334,691.51 445,607.69
Debt of SOZN 56,230,548.52
Luo Huichi 13,030,000.00 13,150,000.00
Others 17,602,550.86 11,693,404.41
Total 180,875,225.71 144,440,050.65
5) Balance of top 5 other receivables at the end of the period
In RMB
Entity By nature Closing balance Age Percentage (%) Balance of bad debt
137
方大集团股份有限公司 2018 年年度报告全文
provision at the end
of the period
Shenzhen Yikang Deposit/advancemen
70,000,000.00 Less than 1 year 38.70% 2,100,000.00
Real Estate Co. Ltd. t of service fee
Bangshen
Electronics Deposit 20,000,000.00 1-2 years 11.06% 2,000,000.00
(Shenzhen) Co., Ltd.
Luo Huichi Advancement 13,030,000.00 3-4 years 7.20% 13,030,000.00
Advanced
Wang Weihong 9,281,670.75 Over 5 years 5.13% 9,281,670.75
construction fee
Shenzhen
ZhongrongLitai Deposit 8,580,127.08 Less than 1 year 4.74% 257,403.81
Investment Co., Ltd.
Total -- 120,891,797.83 -- 66.83% 26,669,074.56
7. Inventories
Note: If the Company needs to comply with the real estate industry disclosure requirements, choose Yes or refer to the disclosure. If
the Company does not need to comply with other industry disclosure requirements, choose No.
Whether the Company needs to comply with disclosure requirements of the real estate industry.
Yes
(1) Classification of inventories
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.3 – Listed Companies Engaged in Property Development.
Classified by nature:
In RMB
Closing balance Opening balance
Item Remaining book Depreciation Remaining book Depreciation
Book value Book value
value provision value provision
Inventory
equipment
Development cost 232,622,862.96 232,622,862.96 209,395,947.66 209,395,947.66
Development
235,332,474.86 62,777,961.10 172,554,513.76 337,505,615.12 337,505,615.12
products
Development of
product by stages
Development of
product for lease
138
方大集团股份有限公司 2018 年年度报告全文
Turnover house
Raw materials 61,897,942.32 608,404.99 61,289,537.33 60,999,279.59 55,182.86 60,944,096.73
Product in
24,655,294.74 24,655,294.74 31,718,230.82 31,718,230.82
process
Finished goods in
5,611,267.61 5,611,267.61 11,569,608.79 11,569,608.79
stock
Assets unsettled
for finished
153,610,458.94 1,603,589.59 152,006,869.35 166,288,661.69 166,288,661.69
construction
contracts
Low price
25,215.87 25,215.87 41,725.37 41,725.37
consumable
OEM materials 2,640,270.67 2,640,270.67 2,147,074.49 2,147,074.49
Total 716,395,787.97 64,989,955.68 651,405,832.29 819,666,143.53 55,182.86 819,610,960.67
Development cost and capitalization rate of its interest are disclosed as follows:
In RMB
Transferr
Increase Including:
ed to
Estimated Other (develop Accumula capitalize
Estimated developm
Starting total Opening decrease ment Closing tive d interest Capital
Project finish ent
time investmen balance in this cost) in balance capitalize for the source
time product in
t period this d interest current
this
period period
period
Jiangxi
Phoenix 670,000,0 209,395,9 2,326,915 232,622,8
10.07.18 12.12.19
Land 00.00 47.66 .30 62.96
project
670,000,0 209,395,9 2,326,915 232,622,8
Total -- -- --
00.00 47.66 .30 62.96
Note: For the untapped land, the estimated start-up time should be disclosed;
Disclose the main project information of "Development Products" according to the following format:
In RMB
Including:
Accumulative
Completion Opening capitalized
Project Increase Decrease Closing balance capitalized
time balance interest for the
interest
current period
Phase I of
337,505,615.1 106,006,353.6 208,179,493.9
Fangda 29.12.16 235,332,474.86 76,421,652.26 7,292,522.11
2 5 1
Town
139
方大集团股份有限公司 2018 年年度报告全文
337,505,615.1 106,006,353.6 208,179,493.9
Total -- 235,332,474.86 76,421,652.26 7,292,522.11
2 5 1
(2) Inventory depreciation provision
The inventory depreciation provision is disclosed as follows:
Classified by nature:
In RMB
Increase in this period Decrease in this period
Opening Closing
Item Recover or Notes
balance Provision Others Others balance
write-off
Inventory
equipment
Development cost
Development
62,777,961.10 62,777,961.10
products
Development of
product by stages
Development of
product for lease
Turnover house
Raw materials 55,182.86 553,222.13 608,404.99
Assets unsettled
for finished
1,603,589.59 1,603,589.59
construction
contracts
Total 55,182.86 64,934,772.82 64,989,955.68 --
(3) Capitalization rate of interest in the closing inventory balance
The balance at the end of the period includes capitalization of borrowing expense of Fangda Town project of RMB11,390,214.83.
The capitalization amount of cumulative borrowing expenses is RMB118,293,158.25, of which RMB7,292,522.11 occurred in this
year.
(4) Assets unsettled for finished construction contracts at the end of the period
In RMB
Item Amount
Accumulative occurred costs 7,561,328,155.99
Accumulative recognized gross margin 1,134,698,206.05
140
方大集团股份有限公司 2018 年年度报告全文
Less: estimated loss 1,603,589.59
Settled amount 8,542,415,903.10
Assets unsettled for finished construction contracts 152,006,869.35
Others:
Whether Company needs to comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.4 – Listed Companies Engaged in Seed and Plantation Business
No
8. Other current assets
In RMB
Item Closing balance Opening balance
Overpaid or prepaid VAT 264,337.68 2,233,706.21
Input tax to be deducted 38,782,071.20 31,554,835.73
Tax to be input 12,498,193.14 228,552.26
Bank financial products 400,000,000.00
Prepaid income tax 3,469.12 5,861,896.52
Other prepaid taxes 11,502.34
Others 150,040.00
Total 51,698,111.14 439,890,493.06
Others:
9. Sellable financial assets
(1) Sellable financial assets
In RMB
Closing balance Opening balance
Item Remaining Impairment Remaining Impairment
Book value Book value
book value provision book value provision
Sellable equity
instruments:
Sellable equity
28,562,575.67 6,888,567.44 21,674,008.23 28,562,575.67 28,562,575.67
instruments:
Measured at fair
value
Measured at cost 28,562,575.67 6,888,567.44 21,674,008.23 28,562,575.67 28,562,575.67
141
方大集团股份有限公司 2018 年年度报告全文
Total 28,562,575.67 6,888,567.44 21,674,008.23 28,562,575.67 28,562,575.67
(2) Sellable financial assets messaged at costs at the end of the period
In RMB
Remaining book value Impairment provision Shareholdi Cash
Invested Beginning Beginning ng in the dividend
Closing Closing
entity of the Increase Decrease of the Increase Decrease invested in the
balance balance
period period entity period
Shenyang 28,562,575 28,562,575 6,888,567. 6,888,567.
64.58%
Fangda .67 .67 44 44
28,562,575 28,562,575 6,888,567. 6,888,567.
Total --
.67 .67 44 44
10. Long-term share equity investment
In RMB
Change (+,-) Balance
Investme of
Other
nt gain Cash impairme
Decrease miscellan
Invested Opening Increased and loss Other dividend Impairme Closing nt
d eous
entity balance investmen recognize equity or profit nt Others balance provision
investmen income
t d using change announce provision at the end
t adjustmen
the equity d of the
t
method period
1. Joint venture
2. Associate
Shenzhen
Ganshang
Joint 8,472,360 -121,179. 8,351,180
Investme .71 93 .78
nt Co.,
Ltd.
Shenzhen
HuihaiYir
ong 6,469,694 -398,109. 6,071,585
Internet .91 63 .28
Service
Co., Ltd.
Jiangxi 19,200,00 36,800,00 -317,108. 55,682,89
Business 0.00 0.00 18 1.82
142
方大集团股份有限公司 2018 年年度报告全文
Innovativ
e
Property
Joint
Stock
Co., Ltd.
34,142,05 36,800,00 -836,397. 70,105,65
Subtotal
5.62 0.00 74 7.88
34,142,05 36,800,00 -836,397. 70,105,65
Total
5.62 0.00 74 7.88
Other note
In this period, the subsidiary Hongjun Investment added a new investment of RMB 36.80 million to Jiangxi Business Innovative
Property Joint Stock Co., Ltd., holding 16% of the shares and appointing a director on the board of directors.
11. Investment real estates
(1) Investment real estate measured at costs
√ Applicable □ Inapplicable
In RMB
Item Houses & buildings Land using right Construction in process Total
I. Book value
1. Opening balance 767,970,582.63 767,970,582.63
2. Increase in this
136,142,663.31 136,142,663.31
period
(1) External
purchase
(2) Transfer-in from
inventory\fixed
136,142,663.31 136,142,663.31
assets\construction in
progress
(3) Increase due to
enterprise merger
3. Decrease in this
870,736,969.53 870,736,969.53
period
(1) Purchase
Other transfer-out 870,736,969.53 870,736,969.53
143
方大集团股份有限公司 2018 年年度报告全文
4. Closing balance 33,376,276.41 33,376,276.41
II. Accumulative
depreciation and
amortization
1. Opening balance 6,455,037.77 6,455,037.77
2. Increase in this
1,374,899.51 1,374,899.51
period
(1) Provision or
848,370.54 848,370.54
amortization
(2) Other increases 526,528.97 526,528.97
3. Decrease in this
period
(1) Purchase
Other transfer-out
4. Closing balance 7,829,937.28 7,829,937.28
III. Impairment provision
1. Opening balance
2. Increase in this
period
(1) Provision
3. Decrease in this
period
(1) Purchase
Other transfer-out
4. Closing balance
IV. Book value
1. Closing book
25,546,339.13 25,546,339.13
value
2. Opening book
761,515,544.86 761,515,544.86
value
(2) Investment real estate measured at fair value
√ Applicable □ Inapplicable
144
方大集团股份有限公司 2018 年年度报告全文
In RMB
Item Houses & buildings Land using right Construction in process Total
I. Opening balance 1,492,278,859.69 1,492,278,859.69
II. Change in this period
Add: external
purchase
Transfer-in
from inventory\fixed
827,038,833.33 827,038,833.33
assets\construction in
progress
Increase due to
enterprise merger
Less: disposal 5,343,905.00 5,343,905.00
Other
transfer-out
Change in fair value 2,916,922,279.48 2,916,922,279.48
III. Closing balance 5,230,896,067.50 5,230,896,067.50
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.3 – Listed Companies Engaged in Property Development.
Disclosure of investment real estate measured at fair value by projects
In RMB
Rental
Building income in Opening Closing fair Change in fair Reason for the
Project Location
area the report fair value value value change and report
period
The fair value of the
investment real
estate is determined
based on Shenzhen
23,145,602. 307,321,56 Wenji Land and
Fangda Building Shenzhen 18739.12 309,195,840.00 6.10%
63 8.00 Property Evaluation
Doc. 深文集评字
(2019)AF 第 0001 号
Real Estate
Valuation Report.
The fair value of the
Commercial podium of 9,749,063.2 1,183,330,8 1,261,406,978.0 investment real
Shenzhen 22565.42 6.60%
Fangda Town 7 34.69 0 estate is determined
based on Shenzhen
145
方大集团股份有限公司 2018 年年度报告全文
Wenji Land and
Property Evaluation
Doc. 深文集评字
(2019)AF 第 0001 号
Real Estate
Valuation Report.
The fair value of the
investment real
estate is determined
based on Shenzhen
Building 1# of Fangda 3,663,804,819.0 Wenji Land and
Shenzhen 72517.71
Town 1 Property Evaluation
Doc. 深文集评字
(2019)AF 第 0001 号
Real Estate
Valuation Report.
32,894,665. 1,490,652,4 5,234,407,277.0
Total —— 113822.25 351.15% ——
90 02.69 1
Note: If the fair value changes more than 10% during the reporting period, the reasons for the change in the comparable items should
be disclosed.In the report period, the gains and losses from changes in the fair value of investment real estate accounted for more than
30% of the company's latest audited net profit. The investment property fair value assessment report or market value research report
shall be separately disclosed.
Whether there is new investment real estate measured at fair value in the report period
√ Yes □ No
Newly-added investment real estate measured by fair value in the current period:
In RMB
Original
Original book Recorded fair Different handling method
Project accounting Closing fair value
value value and basis
method
Balance into the profits and
losses of the changes in fair
value of the additional
investment real estate
belongs to own for rental
housing, is expected to be
Cost
Building 1# of Fangda Town 825,830,031.78 825,830,031.78 3,663,804,819.01 carried out in accordance
measurement
with the actual cost of
initial measurement and
subsequent evaluation value
changes into the profits and
losses of the changes in fair
value.
146
方大集团股份有限公司 2018 年年度报告全文
Total —— 825,830,031.78 825,830,031.78 3,663,804,819.01 ——
(3) Investment real estate without ownership certificate
In RMB
Item Book value Reason
Conditions for applying for property right
Fangda Square phase 2 (building 1#) 3,663,804,819.01
are not met
Other note
12. Fixed assets
In RMB
Item Closing balance Opening balance
Fixed assets 455,274,241.83 468,118,279.18
Disposal of fixed assets
Total 455,274,241.83 468,118,279.18
Note: The fixed assets in the above table refer to the fixed assets after deducting the fixed assets.
(1) Fixed assets
In RMB
Houses & Mechanical Transportation Electronics and
Item PV power plants Total
buildings equipment facilities other devices
I. Original book
value:
1. Opening
352,537,411.13 129,638,636.81 119,041,075.24 20,314,073.83 47,717,030.59 669,248,227.60
balance
2. Increase in
24,742,061.53 125,192.31 4,238,327.21 815,006.51 3,219,992.67 33,140,580.23
this period
(1) Purchase 125,192.31 4,238,327.21 694,189.51 1,698,273.38 6,755,982.41
(2)
Transfer-in of
construction in
progress
(3) Increase
due to enterprise
merger
Other increases 24,742,061.53 120,817.00 1,521,719.29 26,384,597.82
147
方大集团股份有限公司 2018 年年度报告全文
3. Decrease in
18,311,236.45 165,693.54 1,823,356.57 936,659.08 275,657.03 21,512,602.67
this period
(1) Disposal
16,651,431.69 84,500.00 109,410.30 936,659.08 275,657.03 18,057,658.10
or retirement
(2) Investment
real estate 1,659,804.76 1,659,804.76
transfer-out
(3) Other
81,193.54 1,713,946.27 1,795,139.81
decrease
4. Closing
358,968,236.21 129,598,135.58 121,456,045.88 20,192,421.26 50,661,366.23 680,876,205.16
balance
II. Accumulative
depreciation
1. Opening
56,287,505.21 9,896,036.60 95,637,048.49 13,893,304.21 24,061,664.41 199,775,558.92
balance
2. Increase in
9,952,093.44 6,157,641.13 3,703,280.66 1,617,488.53 3,908,246.04 25,338,749.80
this period
(1) Provision 9,839,996.04 6,157,641.13 3,703,280.66 1,483,426.20 2,632,111.62 23,816,455.65
(2) Other
112,097.40 134,062.33 1,276,134.42 1,522,294.15
increases
3. Decrease in
1,306,240.45 0.00 1,614,593.30 807,215.99 228,201.77 3,956,251.51
this period
(1) Disposal
779,711.48 97,689.26 807,215.99 228,201.77 1,912,818.50
or retirement
(2) Investment
real estate 526,528.97 526,528.97
transfer-out
(3) Other
1,516,904.04 1,516,904.04
decrease
4. Closing
64,933,358.20 16,053,677.73 97,725,735.85 14,703,576.75 27,741,708.68 221,158,057.21
balance
III. Impairment
provision
1. Opening
1,354,389.50 1,354,389.50
balance
2. Increase in 3,089,516.62 3,089,516.62
148
方大集团股份有限公司 2018 年年度报告全文
this period
(1) Provision 3,089,516.62 3,089,516.62
3. Decrease in
this period
(1) Disposal
or retirement
4. Closing
3,089,516.62 1,354,389.50 4,443,906.12
balance
IV. Book value
1. Closing
290,945,361.39 113,544,457.85 22,375,920.53 5,488,844.51 22,919,657.55 455,274,241.83
book value
2. Opening
296,249,905.92 119,742,600.21 22,049,637.25 6,420,769.62 23,655,366.18 468,118,279.18
book value
(2) Fixed assets without ownership certificate
In RMB
Item Book value Reason
Houses in Urumuqi for offsetting debt 525,188.43 Historical reasons
Yuehai Office Building C 502 136,705.17 Historical reasons
Tianjin Wanda Center, office building, 15th In the process of applying for property
3,536,190.00
floor 1507 right certificate
Other note
1. On 31.12.18, the cumulative depreciation of the original value of RMB60,287,329.40 in the Group’s houses and buildings is
RMB8,988,711.82. The net value of RMB51,298,617.58 has been pledged to Shenzhen OCT branch of China Construction Bank.
The relevant borrowing has been repaid, but the pledge has not been released.
2. In the current period, the increase in housing and other buildings was caused by FangdaJianke, a subsidiary of the company, which
received the property of Tianjin Wanda Center and the other reduction of housing and buildings which was caused by Fangda New
Materials Co. Ltd. to transfer the leased property to investment real estate this year.
3. In the current period, other increases in other fixed assets such as machinery and equipment and other reductions were caused by
the reclassification of the fixed assets category of the subsidiary FangdaJianke.
13. Construction in process
In RMB
Item Closing balance Opening balance
149
方大集团股份有限公司 2018 年年度报告全文
Construction in process 58,269,452.72 2,668,198.62
Engineering materials
Total 58,269,452.72 2,668,198.62
Note: The construction in progress in the above table refers to the construction in progress after deducting the construction materials.
(1) Construction in progress
In RMB
Closing balance Opening balance
Item Remaining book Impairment Remaining book Impairment
Book value Book value
value provision value provision
Xiabu 20MWp
PV power plant 1,703,080.57 1,703,080.57
project
ChengdaFangda’s
Xinjin
energy-saving 14,150,785.10 14,150,785.10 965,118.05 965,118.05
green curtain wall
project
4th and 39th
floors of Building 42,648,816.23 42,648,816.23
1 of Fangda Town
Fangda Group
East China
1,368,127.25 1,368,127.25
Construction
Base Project
PingxiangXuanfe
ngChayuan
Photovoltaic
Power Plant
Network Security
Protection and
101,724.14 101,724.14
Increased
Dispatching Data
Network
Technical
Transformation
Project
Total 58,269,452.72 58,269,452.72 2,668,198.62 2,668,198.62
150
方大集团股份有限公司 2018 年年度报告全文
(2) Changes in major construction in process in this period
In RMB
Proporti
+Amoun Includin
on of
t g:
accumul Accumul
transfer-i Other capitaliz
Increase ative ative Interest
Opening n to decrease Closing Project ed Capital
Project Budget in this engineeri capitaliz capitaliz
balance fixed in this balance progress interest source
period ng ed ation rate
assets in period for the
investme interest
this current
nt in the
period period
budget
Chengda
Fangda’s
Xinjin
energy-s
46,000,0 965,118. 13,185,6 14,150,7
aving 30.76% 30.76% Others
00.00 05 67.05 85.10
green
curtain
wall
project
4th and
39th Loans
floors of from
48,713,2 42,648,8 42,648,8 3,253,13 390,729.
Building 95.98% 95.98% 5.47% financial
72.01 16.23 16.23 6.04 95
1 of institutio
Fangda ns
Town
Fangda
In
Group
prelimin
East
152,940, 1,368,12 1,368,12 ary
China 0.89% Others
000.00 7.25 7.25 preparati
Construc
on, not
tion Base
started
Project
247,653, 965,118. 57,202,6 58,167,7 3,253,13 390,729.
Total -- -- --
272.01 05 10.53 28.58 6.04 95
Note: Sources of funds, generally include fundraising funds, financial institution loans and other sources.
151
方大集团股份有限公司 2018 年年度报告全文
14. Intangible assets
(1) Intangible assets
In RMB
Unpatented
Item Land using right Patent Computer software Total
technologies
I. Book value
1. Opening
56,497,540.74 10,458,271.30 5,719,888.37 7,928,758.80 80,604,459.21
balance
2. Increase in
22,413,375.00 213,583.65 2,161,611.22 416,325.51 25,204,895.38
this period
(1) Purchase 22,413,375.00 213,583.65 1,593,277.94 416,325.51 24,636,562.10
(2) Internal
R&D
(3) Increase
due to enterprise
merger
(2) Other increases 568,333.28 568,333.28
3. Decrease in this
13,425.38 61,380.70 568,333.28 643,139.36
period
(1) Purchase 13,425.38 13,425.38
(2) Other decrease 61,380.70 568,333.28 629,713.98
4. Closing
78,910,915.74 10,658,429.57 7,820,118.89 7,776,751.03 105,166,215.23
balance
II. Accumulative
amortization
1. Opening
8,816,354.27 3,705,177.97 4,666,638.58 4,546,843.86 21,735,014.68
balance
2. Increase in
1,883,045.86 440,942.87 241,506.35 623,640.70 3,189,135.78
this period
(1) Provision 1,883,045.86 440,942.87 241,506.35 623,640.70 3,189,135.78
3. Decrease in
9,795.20 47,593.42 13,787.28 71,175.90
this period
(1) Purchase 9,795.20 9,795.20
(2) Other decrease 47,593.42 13,787.28 61,380.70
4. Closing 10,699,400.13 4,136,325.64 4,860,551.51 5,156,697.28 24,852,974.56
152
方大集团股份有限公司 2018 年年度报告全文
balance
III. Impairment
provision
1. Opening
balance
2. Increase in
this period
(1) Provision
3. Decrease in
this period
(1) Purchase
4. Closing
balance
IV. Book value
1. Closing book
68,211,515.61 6,522,103.93 2,959,567.38 2,620,053.75 80,313,240.67
value
2. Opening
47,681,186.47 6,753,093.33 1,053,249.79 3,381,914.94 58,869,444.53
book value
Proportion of intangible asset formed by internal R&D of the period in the closing total book value of intangible assets1.99%.
(2) Failure to obtain the land use right certificates
In RMB
Item Book value Reason
There is no
Others:
15. Long-term amortizable expenses
In RMB
Increase in this Amortized amount
Item Opening balance Other decrease Closing balance
period in this period
XuanfengChayuan
village and Zhuyuan
1,252,933.34 56,101.56 1,196,831.78
village land transfer
compensation
Dongguan separation 77,817.13 77,817.13
153
方大集团股份有限公司 2018 年年度报告全文
project
Great Wall
broadband network 9,799.96 9,799.96
fee
Membership fee 460,000.00 600,000.00 142,500.32 917,499.68
Sales center
245,651.86 245,651.86
construction cost
Total 2,046,202.29 600,000.00 531,870.83 2,114,331.46
Other note
Other non-current assets ending balance are mainly company party big jianke company's payment in advance.
16. 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
563,756,866.27 103,043,921.11 384,353,309.47 73,519,373.35
provision
Unrealized profit of
internal transactions
Deductible loss 116,934,707.17 28,982,381.41 27,076,168.17 5,825,923.08
Donation 700,000.00 175,000.00 700,000.00 175,000.00
Unrealizable gross profit 171,832,174.62 42,958,043.66 159,943,328.49 39,138,879.86
Reserved expense 172,319,511.23 42,910,136.64 1,931,083.44 289,662.51
Deferred earning 2,588,555.38 383,758.20 2,343,160.67 351,474.11
Anticipated liabilities 6,831,162.99 1,024,674.45 6,368,353.05 955,252.96
Arbitrage gain and loss 1,625,725.00 243,858.75 159,000.00 23,850.00
Adjustment of fair value
309,641.05 46,446.16
of investment real estate
Provided unpaid taxes 547,012,606.17 136,753,151.54 441,086,914.18 110,271,728.55
Total 1,583,601,308.83 356,474,925.76 1,024,270,958.52 230,597,590.58
(2) Non-deducted deferred income tax liabilities
In RMB
154
方大集团股份有限公司 2018 年年度报告全文
Closing balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
Gain/loss caused by
4,059,575,421.10 1,014,893,855.26 1,143,654,805.86 285,913,701.47
changes in fair value
Estimated gross margin
when Fangda Town
records income, but does 108,771,380.35 27,192,845.09 113,637,356.36 28,409,339.09
not reach the taxable
income level
Total 4,168,346,801.45 1,042,086,700.35 1,257,292,162.22 314,323,040.56
Note: The deferred income tax assets or deferred income tax liabilities at the beginning and ending balances and the corresponding
temporary difference amounts are presented in the categories of temporary differences.
(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
356,474,925.76 230,597,590.58
assets
Deferred income tax
1,042,086,700.35 314,323,040.56
liabilities
(4) Details of unrecognized deferred income tax assets
In RMB
Item Closing balance Opening balance
Deductible temporary difference 144,013.55 946,030.45
Deductible loss 3,432,612.47 5,506,383.60
Total 3,576,626.02 6,452,414.05
Note: There is no uncertainty as to the deductible temporary difference and deductible loss of deferred income tax assets due to the
uncertainty of whether or not sufficient taxable income can be obtained in the future.
(5) Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
155
方大集团股份有限公司 2018 年年度报告全文
Year Closing amount Opening amount Notes
2021 772,174.85
2022 1,093,587.53 4,734,208.75
2023 2,339,024.94
Total 3,432,612.47 5,506,383.60 --
Note: If it is not possible to determine all the deductible losses on the balance sheet date, only fill in the amount that can be
determined and the year of expiration and explain it in the remarks column.
Others:
17. Other non-current assets
In RMB
Item Closing balance Opening balance
Prepaid house and equipment amount 19,296,006.00 31,130,198.46
Prepayment of intangible assets 64,077.67
Total 19,360,083.67 31,130,198.46
Others:
18. Short-term borrowings
(1) Classification of short-term borrowings
In RMB
Item Closing balance Opening balance
Guarantee loan 416,000,000.00
Credit borrow 8,000,000.00
Discount borrowing of acceptance bills 200,000,000.00 200,000,000.00
Total 208,000,000.00 616,000,000.00
Notes to classification of short-term borrowings
19. Derivative financial liabilities
√ Applicable □ Inapplicable
Note: If the company's derivative financial instrument business is important, it must be listed separately.
In RMB
Item Closing balance Opening balance
Futures contracts 1,625,725.00 159,000.00
Total 1,625,725.00 159,000.00
156
方大集团股份有限公司 2018 年年度报告全文
Others:
20. Payable notes and accounts
In RMB
Item Closing balance Opening balance
Notes payable 507,864,518.19 532,921,025.48
Account payable 1,039,630,798.64 946,392,258.92
Total 1,547,495,316.83 1,479,313,284.40
(1) Classification of notes receivable
In RMB
Type Closing balance Opening balance
Commercial acceptance 89,593,075.92 62,954,258.46
Bank acceptance 418,271,442.27 469,966,767.02
Total 507,864,518.19 532,921,025.48
The total amount of payable bills that have matured but not been paid at the end of the period is RMB480,027.59.
(2) Account payable
In RMB
Item Closing balance Opening balance
Account repayable and engineering
735,661,625.17 610,735,320.33
repayables
Construction payable 17,976,531.41 34,924,745.05
Payable installation and implementation
280,338,258.89 297,174,327.49
fees
Others 5,654,383.17 3,557,866.05
Total 1,039,630,798.64 946,392,258.92
(3) Significant payables aging more than 1 year
In RMB
Item Closing balance Reason
Supplier 1 69,722,724.31 Not mature
Supplier 2 17,662,333.07 Not mature
Supplier 3 7,470,170.85 Not mature
157
方大集团股份有限公司 2018 年年度报告全文
Supplier 4 6,326,038.63 Not mature
Supplier 5 5,722,268.99 Not mature
Total 106,903,535.85 --
Others:
21. Prepayment received
(1) Prepayment received
In RMB
Item Closing balance Opening balance
Curtain wall and screen door engineering
223,438,696.72 89,485,775.55
payment
Material loan 3,988,573.19 5,227,948.87
Real estate sales payment 49,542,377.00 78,377,257.88
Others 1,608,201.63 2,260,704.15
Total 278,577,848.54 175,351,686.45
(2) Significant prepayment aged more than 1 year
In RMB
Item Closing balance Reason
Global Rail SDN BHD 9,038,046.00 Engineering payment received in advance
Total 9,038,046.00 --
22. Employees’ wage payable
1. Employees’ wage payable
In RMB
Item Opening balance Increase Decrease Closing balance
1. Short-term
40,387,519.16 270,574,149.59 266,464,007.98 44,497,660.77
remuneration
2. Retirement pension
program-defined 11,611.59 12,595,306.70 12,591,516.89 15,401.40
contribution plan
3. Dismiss compensation 768,490.00 768,490.00
4. Other welfare due in
one year
158
方大集团股份有限公司 2018 年年度报告全文
Total 40,399,130.75 283,937,946.29 279,824,014.87 44,513,062.17
(2) Short-term remuneration
In RMB
Item Opening balance Increase Decrease Closing balance
1. Wage, bonus,
38,779,381.74 244,545,367.73 240,450,703.80 42,874,045.67
allowance and subsidies
2. Employee welfare 5,093,397.28 5,057,397.28 36,000.00
3. Social insurance 14,403,570.36 14,403,570.36
Including:
4,027,734.76 4,027,734.76
medical insurance
Labor injury
767,542.96 767,542.96
insurance
Breeding
471,924.70 471,924.70
insurance
Unemployment insurance 7,429,701.27 7,429,701.27
Medical insurance 1,706,666.67 1,706,666.67
4. Housing fund 65,471.00 5,807,209.35 5,802,518.35 70,162.00
5. Labor union budget
1,542,666.42 724,604.87 749,818.19 1,517,453.10
and staff education fund
6. Short-term paid leave
7. Short-term profit share
program
Total 40,387,519.16 270,574,149.59 266,464,007.98 44,497,660.77
(3) Defined contribution plan
In RMB
Item Opening balance Increase Decrease Closing balance
1. Basic pension 11,611.59 12,206,429.38 12,202,639.57 15,401.40
2. Unemployment
388,877.32 388,877.32
insurance
3. Enterprise annuity
contribution
159
方大集团股份有限公司 2018 年年度报告全文
Total 11,611.59 12,595,306.70 12,591,516.89 15,401.40
Others:
23. Taxes payable
In RMB
Item Closing balance Opening balance
VAT 7,964,966.19 12,300,790.83
Consumption tax
Enterprise income tax 96,212,929.73 114,953,308.81
Personal income tax 793,577.50 1,183,514.25
City maintenance and construction tax 1,234,675.98 1,881,115.36
Land using tax 242,021.60 333,906.32
Property tax 248,910.70 1,432,301.04
Education surtax 609,781.62 896,603.56
Local education surtax 278,944.66 460,806.13
Deed tax 3,429,437.28
Others 124,191.21 83,732.86
Total 107,709,999.19 136,955,516.44
Others:
24. Other payables
In RMB
Item Closing balance Opening balance
Interest payable 2,098,971.44 2,425,311.97
Other payables 811,019,728.40 501,189,510.69
Total 813,118,699.84 503,614,822.66
Note: The other payables in the above table refer to other payables after deducting interest payables and dividends payable.
(1) Interest payable
In RMB
Item Closing balance Opening balance
Long-term borrowing with interest
installment and repayment of principal 2,087,371.44 1,822,719.47
upon maturity
Short-term borrowing interests payable 11,600.00 602,592.50
160
方大集团股份有限公司 2018 年年度报告全文
Total 2,098,971.44 2,425,311.97
(2) Other payables
1) Other payables presented by nature
In RMB
Item Closing balance Opening balance
Performance and quality deposit 47,749,632.53 20,867,337.69
Deposit 152,313.10 8,047,165.84
Reserved expense 182,260,114.71 11,466,723.82
Tax withheld 547,012,606.17 441,086,914.18
Fangda Town pledge 22,236,150.00 100,000.00
Others 11,608,911.89 19,621,369.16
Total 811,019,728.40 501,189,510.69
Other note
1. The tax withheld is the land VAT that needs to be settled and paid for the property delivered of the Fangda Town developed by
Fangda Property.
2. The major other payables aged over 1 year at the end of the year are mainly the land value-added tax of RMB418,264,992.03,
which is not yet settled.
25. Non-current liabilities due within 1 year
In RMB
Item Closing balance Opening balance
Long-term loans due within 1 year 200,000,000.00 200,000,000.00
Total 200,000,000.00 200,000,000.00
Others:
26. Other current liabilities
In RMB
Item Closing balance Opening balance
Substituted money on VAT 9,328,682.25 9,531,014.81
Total 9,328,682.25 9,531,014.81
161
方大集团股份有限公司 2018 年年度报告全文
27. Long-term borrowings
(1) Classification of long-term borrowings
In RMB
Item Closing balance Opening balance
Loan by pledge 693,978,153.39 893,978,153.39
Credit borrow 500,000,000.00
Total 1,193,978,153.39 893,978,153.39
Notes to classification of long-term borrowings:
The above-mentioned borrowing is the 100% stock pledging of Fangda Property Development held by the Company.
Other note, including interest rate range:
The interest rate of long-term borrowings ranges between 5.39% and 6.785%.
28. Anticipated liabilities
In RMB
Item Closing balance Opening balance Reason
Maintenance fee 6,831,162.99 6,368,353.05
Total 6,831,162.99 6,368,353.05 --
Note: including related significant assumptions and estimates for anticipated liabilities
29. Deferred earning
In RMB
Item Opening balance Increase Decrease Closing balance Reason
Government subsidy 10,489,483.94 1,333,000.00 1,421,322.64 10,401,161.30 See Note
Total 10,489,483.94 1,333,000.00 1,421,322.64 10,401,161.30 --
Items involving government subsidies:
In RMB
Amount Other misc.
Related to
Opening Amount of included in gains Costs offset Closing
Liabilities Other change assets/earnin
balance new subsidy non-operatin recorded in in the period balance
g
g revenue this period
Major
investment
project prize Assets-relate
1,738,095.50 57,142.80 1,680,952.70
from Industry d
and Trade
Development
162
方大集团股份有限公司 2018 年年度报告全文
Division of
Dongguan
Finance
Bureau
Massive
production
project of
air-breathing Assets-relate
7,517,843.03 123,987.24 7,393,855.79
double-layer d
hollow glass
energy-savin
g curtain call
Railway
transport
screen door
controlling Assets-relate
125,065.17 28,507.00 96,558.17
system and d
information
transmission
technology
Distributed
PV power
generation
project
subsidy Assets-relate
443,750.09 24,999.96 418,750.13
sponsored by d
Dongguan
Reform and
Development
Commission
Luxi county
Xuanfeng
town
Assets-relate
government 184,730.15 3,725.64 181,004.51
d
business
introduction
subsidy
Shenzhen
SME Service
Bureau Assets-relate
480,000.00 20,000.00 500,000.00
enterprise IT d
construction
subsidy
163
方大集团股份有限公司 2018 年年度报告全文
Second batch
of the 2017
Corporate
Earning-relat
Research and 1,113,000.00 1,113,000.00
ed
Development
Funding
Scheme
Shenzhen
Science and
Technology
Innovation Earning-relat
200,000.00 -{}- 69,960.00 130,040.00
Committee ed
Technology
Innovation
Subsidy
10,489,483.9 10,401,161.3
Total 1,333,000.00 1,421,322.64
4 0
Others:
1. The Dongguan Finance Bureau Industry and Trade Development Division major subsidy project is a subsidized project not
stipulated in Dongguan Financial Circular [2013] No.779. As the project has formed into long-term assets, the Company treats it as
an assets-related government subsidy.
2. The massive production project of air-breathing double-layer hollow glass energy-saving curtain wall is a subsidied project
stipulated in Guangdong Financial Doc [2013] No.183. As the project has formed into long-term assets, the Company treats it as an
assets-related government subsidy.
3. The railway transport screen door controlling system and information transmission technology is a subsidized project stipulated in
Shenzhen Tech Innovation [2013] No.242. RMB300,000 is used to purchase equipment and RMB900,000 is used to purchase
materials and for travel fees. As the project has formed into long-term assets, the Company treats RMB300,000 as assets-related
government subsidy and RMB900,000 as earning-related government subsidy. The Dongguan Municipal Development and Reform
Commission on the organization of the Dongguan City distributed photovoltaic power generation subsidy program is based on the
"Dongguan Municipal Development and Reform Commission's Circular on Organizing the Application of Dongguan Distributed PV
Generation Capital Subsidy Project" for various types of buildings and structures using distributed photovoltaic power generation
projects. Owners, according to the installed capacity of 250,000 yuan / MW for a one-time grant, the maximum subsidy for a single
project does not exceed 2 million yuan, because the project is related to assets, the company will use it as a government subsidy
related to assets.
4. The Xuanfeng Town Government Investment Promotion Subsidy Project of Luxi County promoted the development of the local
economy. Xuanfeng Town Government of Luxi County introduced Luxin New Energy Company's solar photovoltaic power
generation project and gave Luxin New Energy Corporation subsidies for obtaining state-owned construction land use rights. As this
project is related to assets, the Company regards it as a government grant related to the assets.
5. The subsidy project of the Shenzhen Municipal Bureau of Small and Medium-sized Enterprises Service Enterprise
164
方大集团股份有限公司 2018 年年度报告全文
InformatizationProject is based on the relevant provisions of the Interim Measures for the Management of Special Funds for the
Development of Private and Small and Medium-sized Enterprises in Shenzhen (SCC (2012) No. 177) issued by the Shenzhen
Municipal Bureau of Small and Medium Business Administration. In 2017, the special fund enterprise informationization project
subsidies, because the project is related to assets, the company will use it as a government grant related to assets.
30. Capital share
In RMB
Change (+,-)
Opening Closing
Issued new Transferred
balance Bonus shares Others Subtotal balance
shares from reserves
Total of capital 1,183,642,254. 1,155,481,686.
-28,160,568.00 -28,160,568.00
shares 00 00
Others:
1. The decrease in share capital was due to the repurchase and cancellation of B shares by the company during the reporting period.
2. By 31.12.18, the Company has 1,417,242 restricted shares, of which 1,417,242 shares are held by senior management natural
person.
31. Capital reserve
In RMB
Item Opening balance Increase Decrease Closing balance
Capital premium (share
71,375,387.61 71,375,293.37 94.24
capital premium)
Other capital reserves 1,454,097.35 1,454,097.35
Total 72,829,484.96 71,375,293.37 1,454,191.59
Other note, including explanation about the reason of the change:
The decrease in share capital was due to the repurchase and cancellation of B shares by the company during the reporting period.
32. Shares in stock
In RMB
Item Opening balance Increase Decrease Closing balance
B share 111,166,053.48 100,334,615.82 10,831,437.66
Total 111,166,053.48 100,334,615.82 10,831,437.66
Other note, including explanation about the reason of the change:
(1) The company held the 8th meeting of the 8th Board of Directors and the 2017 Shareholders' Meeting on April 24 2018 and May
15 2018 respectively and reviewed and approved the proposal of the company to repurchase domestically listed foreign shares (B
shares). From August 13th to August 18th 2018, a total of 28,160,568.00 shares were repurchased through centralized bidding. The
highest price was HK$4.22/share, the lowest price was HK$3.95 per share and the actual accumulated payment was
165
方大集团股份有限公司 2018 年年度报告全文
HK$114,478,923.89 (including transaction costs). The treasury shares were RMB 100,334,615.82. The company held the 10th
meeting of the 8th Board of Directors and the 1st Extraordinary General Meeting of Shareholders in 2018 on September 10 2018 and
September 27 2018 respectively. The share (B shares) proposal as of December 31 2018 through the centralized bidding method a
total of 3670247.00 shares were purchased and the highest price was HK$3.399/share, the lowest price was HK$3.24 per share and
the actual accumulated payment was HK$12,312,442.82 (including transaction costs) accounting for treasury shares of
RMB10831437.66;
(2) 28,160,568.00 shares of share capital reduced as a result of the write-off of treasury shares
(3) If the cost of the cancelled stocks is higher than the corresponding cost of equity, the capital reserve of RMB71375293.37 and
surplus reserve of RMB798754.45 will be reduced.
33. Other miscellaneous income
In RMB
Amount occurred in the current period
Less: amount
After-tax
written into
After-tax amount
Opening Amount other gains Less: Closing
Item amount attributed to
balance before and transferred Income tax balance
attributed to minority
income tax into gain/loss expenses
the parent shareholder
in previous
s
terms
2. Other misc. incomes that will be -1,551,389. -1,203,760. 7,382,087
8,585,847.99 -141,000.00 -206,628.75
re-classified into gain and loss 15 40 .59
Effective part in the gain and -1,518,525. -1,170,896. -1,290,74
-119,850.00 -141,000.00 -206,628.75
loss of arbitrage of cash flow 00 25 6.25
Translation difference of -83,719.6
-50,855.47 -32,864.15 -32,864.15
foreign exchange statement 2
Investment real estate measured at 8,756,553
8,756,553.46
fair value .46
-1,551,389. -1,203,760. 7,382,087
Other miscellaneous income 8,585,847.99 -141,000.00 -206,628.75
15 40 .59
34. Surplus reserves
In RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
110,690,396.65 10,583,579.20 798,754.45 120,475,221.40
reserves
Total 110,690,396.65 10,583,579.20 798,754.45 120,475,221.40
166
方大集团股份有限公司 2018 年年度报告全文
35. Retained profit
In RMB
Item Current period Last period
Adjustment on retained profit of previous period 1,863,191,218.58 1,016,820,576.30
Retained profit adjusted at beginning of year 1,863,191,218.58 1,016,820,576.30
Plus: Net profit attributable to owners of the
2,246,164,571.68 1,144,404,441.03
parent
Less: Statutory surplus reserves 10,583,579.20 21,850,606.15
Common share dividend payable 177,546,338.10 276,183,192.60
Closing retained profit 3,921,225,872.96 1,863,191,218.58
Details of retained profit adjusted at beginning of the period
1) Retrospective adjustment due to adopting of the Enterprise Accounting Standard and related regulations, included the retained
profit by RMB0.
2) Variation of accounting policies, influenced the retained profit by RMB0.
3) Correction of material accounting errors, influenced the retained profit by RMB0.
4) Change of consolidation range caused by merger of entities under common control, influenced the retained profit by RMB0.
5) Other adjustment influenced the retained profit by RMB0.
36. Operational revenue and costs
In RMB
Amount occurred in the current period Occurred in previous period
Item
Income Cost Income Cost
Main business 2,987,575,699.48 2,314,151,985.65 2,900,462,349.88 1,977,766,793.96
Other businesses 61,104,452.58 23,796,024.77 47,008,463.70 20,472,095.25
Total 3,048,680,152.06 2,337,948,010.42 2,947,470,813.58 1,998,238,889.21
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.3 – Listed Companies Engaged in Property Development.
Top-5 projects in terms of income received and recognized in the reporting period:
In RMB
No. Project Balanace
1 Fangda Town 697,518,090.10
37. Taxes and surcharges
In RMB
Item Amount occurred in the current period Occurred in previous period
167
方大集团股份有限公司 2018 年年度报告全文
City maintenance and construction tax 7,984,304.25 7,814,008.40
Education surtax 5,756,258.86 7,797,178.90
Property tax 6,220,032.07 4,118,281.19
Land using tax 1,738,269.03 1,432,280.19
Stamp tax 1,946,004.29 1,357,531.03
Land VAT 128,891,545.18 167,899,723.69
Business tax 1,061,489.31
Others 145,514.11 309,436.30
Total 152,681,927.79 191,789,929.01
Others:
38. Sales expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 20,260,198.42 22,338,575.61
Freight and miscellaneous charges 5,041,135.44 6,023,654.97
Travel expense 1,852,326.67 4,918,740.99
Entertainment expense 1,991,769.30 1,918,141.04
Material consumption 564,173.89 1,034,700.68
Office costs 1,081,976.69 2,182,168.26
Rental 781,210.79 848,873.82
Advertisement and promotion fee 917,550.20 5,698,609.97
Sales agency fee 14,128,431.60 14,032,712.93
Others 3,215,172.89 2,067,770.13
Total 49,833,945.89 61,063,948.40
Others:
39. Management expenses
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 86,778,163.52 81,335,907.43
Depreciation and amortization 11,119,225.43 15,437,399.78
Agencies 8,486,136.13 6,206,988.31
Maintenance costs 9,669,303.38 7,676,857.59
168
方大集团股份有限公司 2018 年年度报告全文
Water and electricity 622,744.97 656,735.35
Office expense 3,506,152.86 3,428,451.92
Travel expense 2,518,992.57 2,887,763.45
Entertainment expense 3,313,697.59 2,896,590.12
Rental 3,489,288.27 2,531,368.11
Lawsuit 463,766.14 237,815.52
Material consumption 255,851.35 313,727.03
Property management fee 689,894.03 1,978,270.47
Others 9,089,408.55 9,231,602.45
Total 140,002,624.79 134,819,477.53
Others:
40. R&D cost
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 14,718,049.77 13,216,294.50
Material costs 1,596,850.18 1,194,036.40
Rental 1,770,437.76 1,716,524.80
Depreciation costs 397,092.74 439,827.59
Agencies 308,497.20 149,175.09
Amortization of intangible assets 88,515.55 138,611.22
Travel expense 99,589.29 229,518.69
Maintenance costs 144,199.46 193,546.74
Others 731,012.63 719,667.74
Total 19,854,244.58 17,997,202.77
Others:
41. Financial expenses
In RMB
Item Amount occurred in the current period Occurred in previous period
Interest expense 83,226,880.85 89,495,390.12
Less: interest capitalization 7,292,522.11 20,766,462.22
Less: discount government subsidies 250,000.00 1,786,400.00
Less: Interest income 9,255,120.60 7,781,596.28
169
方大集团股份有限公司 2018 年年度报告全文
Acceptant discount 10,241,203.18 3,384,259.28
Exchange gain/loss -2,391,402.94 3,305,715.16
Commission charges and others 8,049,350.51 1,207,940.00
Total 82,328,388.89 67,058,846.06
Others:
42. Assets impairment loss
In RMB
Item Amount occurred in the current period Occurred in previous period
1. Bad debt loss 164,953,654.42 58,879,269.89
2. Inventory depreciation loss 64,934,772.82
3. Impairment loss on available-for-sale
6,888,567.44
financial assets
7. Fixed assets impairment loss 3,089,516.62
Total 239,866,511.30 58,879,269.89
Others:
43. Other gains
In RMB
Source Amount occurred in the current period Occurred in previous period
LED production expansion technology
381,219.96
renovation project
Luxi county Xuanfeng town government
3,725.64 1,552.35
business introduction subsidy
Major investment project prize from
Industry and Trade Development Division 57,142.80 57,142.80
of Dongguan Finance Bureau
Distributed PV power generation project
subsidy sponsored by Dongguan Reform 24,999.96 24,999.96
and Development Commission
Railway transport screen door controlling
system and information transmission 28,507.00 43,229.28
technology
Massive production project of
air-breathing double-layer hollow glass 123,987.24 123,987.24
energy-saving curtain call
Technology achievement subsidies 100,000.00
170
方大集团股份有限公司 2018 年年度报告全文
VAT rebated into revenue 2,280,640.07 2,730,971.34
Nanchang Financial Bureau
municipal-level enterprise technology 50,000.00
prize
Intellectual property right project subsidy
by Shenzhen market and quality 100,000.00
supervision and management committee
Industry upgrade and transformation
subsidy for 2017 by Shenzhen Economic 1,000,000.00
and Trade Information Commission
Industry growth subsidy 680,000.00
Hi-tech enterprise development fund 300,000.00
Hi-tech enterprise prize 300,000.00
Employment subsidy 238,968.31 504,878.65
Others 834,049.75 184,500.00
Income tax commission 376,916.38
Second batch of the 2017 Corporate
Research and Development Funding 1,113,000.00
Scheme
Nanchang High-tech Development Zone
Management Committee Finance Bureau 300,000.00
allocates industrial incentives
National standard preparation subsidy 300,000.00
Total 5,681,937.15 6,582,481.58
44. Investment income
In RMB
Item Amount occurred in the current period Occurred in previous period
Gains from long-term equity investment
-836,397.74 -2,162,975.06
measured by equity
Investment gain obtained from disposal of
84,959,644.45
long-term equity investment
Investment gain obtained from disposal of
financial assets measured at fair value with
57,856,845.60 122,438,379.65
variations accounted into current income
account
Investment gain obtained from disposal of
-56,309,694.76 -122,795,801.32
financial assets measured at fair value with
171
方大集团股份有限公司 2018 年年度报告全文
variations accounted into current income
account
Investment gain of financial products 27,065,331.33 20,455,865.70
Others -4,000.00
Total 27,776,084.43 102,891,113.42
Others:
45. 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
Investment real estate measured at fair
2,916,598,485.48 890,037,303.97
value
Effective part in the gain and loss of
-2,739,924.91 2,371,344.29
arbitrage of cash flow
Total 2,913,858,560.57 892,408,648.26
Others:
46. Assets disposal gains
In RMB
Source Amount occurred in the current period Occurred in previous period
Gain and loss from disposal of fixed assets
-3,516,357.91 5,027,717.19
("-" for loss)
47. Non-business income
In RMB
Amount occurred in the current Amount accounted into the
Item Occurred in previous period
period current accidental gain/loss
Penalty income 605,723.88 363,980.93 605,723.88
Payable account not able to be
3,208,403.38
paid
Compensation received 2,993,898.33 2,993,898.33
Others 112,971.88 4,810,402.92 112,971.88
Total 3,712,594.09 8,382,787.23 3,712,594.09
172
方大集团股份有限公司 2018 年年度报告全文
48. Non-business expenses
In RMB
Amount occurred in the current Amount accounted into the
Item Occurred in previous period
period current accidental gain/loss
Loss from debt reorganization 3,674,141.05
Donation 622,950.00 3,911,000.00 622,950.00
Loss from retirement os
1,785,203.11 71,025.12 1,785,203.11
damaged non-current assets
Penalty and overdue fine 827,560.09 203,328.43 827,560.09
Others 610,489.60 213,904.94 610,489.60
Total 3,846,202.80 8,073,399.54 3,846,202.80
Others:
49. 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 121,573,588.89 216,022,591.68
Deferred income tax expenses 602,092,953.36 57,772,785.66
Total 723,666,542.25 273,795,377.34
(2) Adjustment process of accounting profit and income tax expense
In RMB
Item Amount occurred in the current period
Total profit 2,969,831,113.93
Income tax expenses calculated based on the legal (or applicable)
742,457,778.48
tax rates
Impacts of different tax rates applicable for some subsidiaries -6,778,607.02
Impacts of income tax before adjustment 2,268,965.90
Impact of non-taxable income -14,545,891.42
Impacts of non-deductible cost, expense and loss 1,323,943.11
Impacts of using deductible loss of unrecognized deferred
-2,586.02
income tax assets
Deductable temporary difference and deductable loss of 174,496.30
173
方大集团股份有限公司 2018 年年度报告全文
unrecognized deferred income tax assets
Profit and loss of associates and joint ventures calculated using
209,099.45
the equity method
Taxation impact of R&D expense and (presented with ―-‖) -1,440,656.53
Income tax expenses 723,666,542.25
Other note
50. Other miscellaneous income
See Note VII 33.
51. 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 8,316,874.92 6,851,168.02
Subsidy income 5,681,937.15 6,184,809.73
Retrieving of deposits for exchange bills 32,714,226.95 20,929,073.67
Retrieving of bidding deposits 33,349,895.41 72,013,587.39
Other operating accounts 26,996,640.74 21,760,218.65
Total 107,059,575.17 127,738,857.46
Notes to other cash inflow related to operation:
(2) Other cash paid related to operation
In RMB
Item Amount occurred in the current period Occurred in previous period
Sales expense 29,750,837.95 25,196,863.33
Administrative expense 58,067,357.63 29,288,934.10
Bidding deposit paid 99,763,670.34 71,049,500.84
Net draft deposit net paid 128,198,940.32 110,475,014.30
Other trades 23,353,211.96 25,533,661.05
Total 339,134,018.20 261,543,973.62
Notes to other cash paid related to operation:
174
方大集团股份有限公司 2018 年年度报告全文
(3) Other cash paid related to financing
In RMB
Item Amount occurred in the current period Occurred in previous period
Repurchase amout of B shares 111,166,053.48
B shares only door limited funds 88,273,535.75
Total 199,439,589.23
Notes to other cash paid related to financing:
52. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB
Supplementary information Amount of the Current Term Amount of the Previous Term
1. Net profit adjusted to cash flow of
-- --
business operation
Net profit 2,246,164,571.68 1,151,047,221.51
Plus: Asset impairment provision 239,866,511.30 58,879,269.89
Fixed asset depreciation, gas and petrol
24,664,826.19 28,254,417.84
depreciation, production goods depreciation
Amortization of intangible assets 3,189,135.78 3,377,119.80
Amortization of long-term amortizable
531,870.83 2,992,171.54
expenses
Loss from disposal of fixed assets, intangible
assets, and other long-term assets (―-― for 3,295,588.91 -4,594,701.20
gains)
Loss from fixed asset discard (―-― for gains) 1,785,203.11 71,025.12
Loss from fair value fluctuation (―-― for
-2,913,858,560.57 -892,079,427.63
gains)
Financial expenses (―-― for gains) 84,126,977.13 68,088,240.21
Investment losses (―-― for gains) -27,776,084.43 -102,891,113.42
Decrease of deferred income tax asset
-125,877,335.18 -53,779,742.02
(―-― for increase)
Increase of deferred income tax asset (―-― for
727,763,659.79 111,552,527.68
increase)
Decrease of inventory (―-― for increase) 103,270,355.56 163,916,553.77
Decrease of operational receivable items -566,885,607.13 346,476,038.35
175
方大集团股份有限公司 2018 年年度报告全文
(―-― for increase)
Increase of operational receivable items
682,326,319.97 -233,040,368.34
(―-― for decrease)
Others -95,484,713.37 -90,436,087.37
Cash flow generated by business operations, 387,102,719.57
557,833,145.73
net
2. Major investment and financing operation
-- --
not involving with cash
3. Net change of cash and cash equivalents -- --
Balance of cash at period end 956,190,890.68 931,285,535.55
Less: Initial balance of cash 931,285,535.55 935,824,575.40
Net increase in cash and cash equivalents 24,905,355.13 -4,539,039.85
(2) Composition of cash and cash equivalents
In RMB
Item Closing balance Opening balance
I. Cash 956,190,890.68 931,285,535.55
Including: Cash in stock 5,167.01 42,636.09
Bank savings can be used at any time 953,231,178.60 921,773,052.65
Other monetary capital can be used at
2,954,545.07 9,469,846.81
any time
III. Balance of cash and cash equivalents at
956,190,890.68 931,285,535.55
end of term
Including: restricted cash and cash
equivalent used by parent company or 432,871,193.08 249,112,943.96
subsidiaries in the Group
Others:
53. Ownership- or use-right-restricted assets
In RMB
Item Closing book value Reason
Warranty, time deposit, B share repurchase
Monetary capital 432,871,193.08
fund
Fixed assets 51,298,617.58 Loan by pledge
Investment real estate 309,189,866.37 Loan by pledge
100% stake in Fangda Property 200,000,000.00 Loan by pledge
176
方大集团股份有限公司 2018 年年度报告全文
Development held by the Company
Total 993,359,677.03 --
Others:
54. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Closing foreign currency
Item Exchange rate Closing RMB balance
balance
Monetary capital -- -- 129,248,907.17
Including: USD 734,888.93 6.8632 5,043,689.70
HK Dollar 136,096,929.35 0.8762 119,248,129.48
AUD 352,362.62 4.8250 1,700,149.64
SGD 650,580.95 5.0062 3,256,938.35
Account receivable -- -- 23,584,697.27
Including: USD 3,182,153.65 6.8632 21,839,756.93
HK Dollar 369,071.47 0.8762 323,380.42
AUD 52,421.90 4.8250 252,935.67
SGD 233,435.39 5.0062 1,168,624.25
Other receivables 429,399.61
Including: USD 13,682.31 6.8632 93,904.43
HK Dollar 381,389.10 0.8762 334,173.13
AUD 274.00 4.8250 1,322.05
Other payables 109,485.66
Including: HKD 124,955.10 0.8762 109,485.66
Employees’ wage payable 4,021,941.54
Including: HKD 14,022.10 0.8762 12,286.16
AUD 831,016.66 4.8250 4,009,655.38
Others:
(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
177
方大集团股份有限公司 2018 年年度报告全文
55. Hedging
Hedging items and related tools, qualitative and quantitative information about hedging risks:
Hedging type Hedged item Hedging instrument Hedged risk
Cash flow hedging Aluminum plate futures transaction Aluminum futures contract Rise on raw material prices, causing
purchase cost increase
VIII. Change to Consolidation Scope
1. Change to the consolidation scope for other reasons
Change in the consolidation scope due to other reasons (such as new subsidiaries and liquidation of subsidiaries) and the situations:
1. In the current period, Shanghai Fangda Jingling Technology Co. Ltd. and Shenzhen Fangda Cloud Rail
Technology Co. Ltd. have been newly established two new companies in the current consolidated statement.
2. In this period, Fangda Decoration Engineering (Shenyang) Co. Ltd. an indirectly controlled subsidiary was cancelled and no longer
controlled. Therefore, one subsidiary is moved out of the consolidation scope in this period.
IX. Equity in Other Entities
1. Interests in subsidiaries
(1) Group Composition
Registered Shareholding percentage
Company Place of business Business Obtaining method
address Direct Indirect
Designing,
manufacturing,
FangdaJianke Shenzhen Shenzhen 98.39% 1.61% Incorporation
and installation of
curtain walls
Production,
processing and
Fangda
Shenzhen Shenzhen installation of 14.00% 86.00% Incorporation
Automatic
subway screen
doors
Prodution and
sales of new-type
materialsm
Fangda New
Nanchang Nanchang composite 75.00% 25.00% Incorporation
Material
materials and
production of
curtain walls
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Computer
Kexunda Shenzhen Shenzhen software 100.00% Incorporation
development
Real estate
Fangda Property Shenzhen Shenzhen development and 100.00% Incorporation
operation
Design and
Fangda New
Shenzhen Shenzhen construction of 100.00% Incorporation
Energy
PV power plants
Trusted
processing of
Chengdu Fangda Chengdu Chengdu 100.00% Incorporation
building curtain
wall materials
Shihui
International Virgin Islands Virgin Islands Investment 100.00% Incorporation
Holding Co., Ltd.
Production and
Dongguan New
Dongguan Dongguan sales of building 100.00% Incorporation
Material
curtain walls
Fangda Property Property
Shenzhen Shenzhen 100.00% Incorporation
Management management
Jiangxi Fangda
Real estate
Property
Nanchang Nanchang development and 100.00% Incorporation
Development Co.,
operation
Ltd.
PingxiangFangda Design and
Luxin New Pingxiang Pingxiang construction of 100.00% Incorporation
Energy Co., Ltd. PV power plants
PingxiangXiangd
Design and
ongFangda
Pingxiang Pingxiang construction of 100.00% Incorporation
New Energy Co.,
PV power plants
Ltd.
Nanchang Xinjian Design and
Fangda New Nanchang Nanchang construction of 100.00% Incorporation
Energy Co., Ltd. PV power plants
Dongguan Design and
Fangda New Dongguan Dongguan construction of 100.00% Incorporation
Energy Co., Ltd. PV power plants
Kechuangyuan Software
Shenzhen Shenzhen 100.00% Incorporation
Software development
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方大集团股份有限公司 2018 年年度报告全文
Fangda
Automation Metro screen
Hong Kong Hong Kong 100.00% Incorporation
(Hong Kong) Co., door
Ltd.
Hongjun
Investment Shenzhen Shenzhen Investment 98.00% 2.00% Incorporation
Company
Designing,
manufacturing,
Jianke Australia Australia Australia 100.00% Incorporation
and installation of
curtain walls
Design,
development and
Fangda Cloud
Shenzhen Shenzhen sales of cloud rail 100.00% Incorporation
Rail
transport
equipment
Shanghai
Production and
FangdaQingling
Shanghai Shanghai sales of building 100.00% Incorporation
Technology Co.,
curtain walls
Ltd.
Note to the difference between shareholdings in subsidiaries and percentage of votes:
Basis for holding half or less votes but controlling invested entities, and holding half or more votes but not controlling invested
entities:
Basis for control of structural entities incorporated in the consolidation scope:
Basis for recognizing a company as an agent or consigner:
Others:
In this period, Shenyang Decoration Company has completed the procedures for cancellation of business.
3. Interests in joint ventures or associates
(1) Financial summary of insignificant joint ventures and associates
In RMB
Closing balance/amount occurred in this Opening balance/amount occurred in
period previous period
Joint venture: -- --
Total book value of investment
Total shareholding -- --
Net profit
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方大集团股份有限公司 2018 年年度报告全文
Other miscellaneous income
--Total of misc. incomes
Associate: -- --
Total book value of investment 70,105,657.88 34,142,055.62
Total shareholding -- --
Net profit -836,397.74 -2,162,975.06
Other miscellaneous income
--Total of misc. incomes -836,397.74 -2,162,975.06
X. Risks of Financial Tools
Major financial tools of the Group include monetary fund, accounts receivable, receivable bills, other receivables, other current assets,
financial assets measured at fair value and whose change recorded in the profit and loss of this period, accounts payable, interest
payable, payable bills, other payables, short-term borrowings, other current liabilities, non-current liabilities due within one year and
long-term borrowings. Details about the Group's financial instruments are disclosed in related notes. The following explains risks
related to the financial instruments and risk management policies adopted by the Group to lower the risks. The management of the
Group manages and monitor the risks to ensure that the risks are within the acceptable range.
1. Risk management target and policy
The target of the risk management is to balance between risk and benefit and lower financial risks’ impacts on the Group’s financial
performance. Based on the target, the Group has formulated risk management policy to identify and analyze risks facing the Group
and set an appropriate acceptable level and internal control procedures to monitor the risks. The Group regularly reviews the risk
management policies and related internal control system to suit the market status and changes in the Group’s operating activities. The
internal auditing department of the Group will regularly or randomly check the implementation of the internal control system.
Risks caused by the Group’s financial instruments are credit risk, liquidity risk and market risk (including interest, exchange rate and
product price/equity tool price risks).
(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 Group manages credit risks through classification. The credit risk is mainly caused by bank deposit and receivables.
The Group’s bank deposit is mainly deposited in state-owned banks and large-sized listed banks. The credit risk caused by bank
deposited is minor.
For receivables, the Group sets up related policies to control the credit risk. 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 has adopted a policy of cooperating only with creditworthy counterparties and obtaining sufficient collateral when necessary
to mitigate the risk of financial losses arising from the failure of the counterparty to perform its contractual obligations. 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.
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The debtors of the Group's accounts receivable are customers distributed in different industries and regions. The Group continues to
perform credit assessments on the financial status of the receivables and when appropriate purchases credit guarantee insurance.
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 18.60% of the total accounts receivable (2017:
12.85%); among other receivables, other receivables from top 5 customers account for 66.83% of the total other receivables (2017:
71.91%).
(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 Group keeps adequate cash and cash equivalent, and monitors the level to ensure that the cash and cash equivalent can meet the
operation needs. The management of the Group monitors the use of bank loans and ensures that they are used as agreed. The Group
also obtains guarantee from financial institutions for adequate standby fund to meet short-term and long-term capital demand.
The Group can also use fund generated by operating activities and bank and other loans. On 31.12.18, bank loan credit that the Group
has not used was RMB2,649,754,000 (31.12.17: RMB2,538,021,800).
Financial liabilities and excluded guarantees held by the Group by undiscounted residual contract cash flow (in RMB10,000) at the
end of the period:
Closing amount
Assets Less than 1 year Within 1-3 years Over 3 years Total
Financial liabilities:
Short-term loans 20,800.00 20,800.00
Notes payable and accounts
139,987.76 14,588.41 173.36 154,749.53
payable
Employees’ wage payable 4,451.31 4,451.31
Other payables 25,200.85 55,107.77 1,003.25 81,311.87
Non-current liabilities due in 1
20,000.00 20,000.00
year
Other current liabilities 932.87 932.87
Long-term loans 119,397.82 119,397.82
Total liabilities 211,372.79 189,094.00 1,176.61 401,643.40
Financial liabilities and excluded guarantees held by the Group by undiscounted residual contract cash flow (in RMB10,000) at the
beginning of the period:
Opening amount
Assets Less than 1 year Within 1-3 years Over 3 years Total
Financial liabilities:
Short-term loans 61,600.00 61,600.00
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Notes payable and accounts
141,188.66 6,732.71 9.96 147,931.33
payable
Employees’ wage payable 4,039.91 4,039.91
Other payables 15,776.16 31,241.89 3,343.43 50,361.48
Non-current liabilities due in 1
20,000.00 20,000.00
year
Other current liabilities 953.1 953.1
Long-term loans 80,000.00 9,397.82 89,397.82
Total liabilities 243,557.83 117,974.60 12,751.21 374,283.64
The amount of financial liabilities disclosed in the above table is undiscounted contractual cash flow and may therefore differ from
the carrying amount in the balance sheet.
(3) Market risk
Market risk of financial instrument is caused by changes in the fair value of financial instruments or future cash flow, including
interest risk, exchange rate and other price risks.
Exchange rate risk
Interest rate risk is caused by fluctuation of the fair value or future cash flow of financial instruments caused by changes in the
market interest rate. The interest rate risk can be caused by recognized interest-bearing financial instruments and unrecognized
financial instruments.
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 pays close attention to the risks of changing interest rates. The Group adopts no hedging policies currently. However
management is responsible for monitoring interest rate risk and will consider hedging significant interest rate risk should the need
arise. As fixed deposits are short-term borrowing, the interest rate risk of the fair value of bank deposit is minor.
On December 31 2018, the current floating interest rate borrowing was RMB500 million. if the borrowing rate calculated with
floating interest rate rises or falls by 50 basis points, while other factors remain unchanged, the Group's net profit and shareholders'
equity will change by RMB90,800. (December 31, 2017: 0)
For the financial instruments held on the balance sheet date that expose the Group to fair value interest rate risk, the impact of the net
profit and shareholders' equity in the above sensitivity analysis is measured based on the assumption that the interest rate changes on
the balance sheet date according to the new interest rate. For floating interest rate non-derivatives held on the balance sheet date that
expose the Group to cash flow interest rate risk, the effect of net profit and shareholder equity in the above sensitivity analysis is the
interest income or income estimated by the above interest rate changes. The previous year's analysis was based on the same
assumptions and methods.
Exchange rate risk
Exchange rate risk is caused by fluctuation of the fair value or future cash flow of financial instruments caused by changes in the
foreign exchange rates. The exchange rate risk can be caused by financial instruments priced in foreign currencies.
Exchange rate risk is mainly attributable to the Group's financial position and cash flows affected by fluctuations in foreign exchange
rates. Except for the subsidiaries established in Hong Kong holding assets in Hong Kong dollars as the settlement currency, there is
only a small amount of investment in the Hong Kong market. The proportion of assets and liabilities held by the Group in foreign
currency assets and liabilities is not significant. Therefore the Group believes that the exchange rate risk is not significant.
The Group pays close attention to the risks of changing exchange rate. The Group takes no measure to prevent other exchange risks
currently.However management is responsible for monitoring exchange rate risk and will consider hedging significant exchange rate
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方大集团股份有限公司 2018 年年度报告全文
risk should the need arise.
See Note V. 51 Foreign Currency Item Note for the Group’s financial assets and liabilities priced in foreign currencies.
Other price risks
Other price risks refer to risks of fluctuations caused by changes to market prices, regardless of whether the changes are caused by
factors related to a single financial tool or issuer, or factors related to all similar financial tools traded in the market. Other price risks
come from changes in product prices or equity tool prices.
The Group's investment in financial assets classified as fair value through changes in fair value through profit or loss, and investment
properties measured in fair value are measured at fair value on the balance sheet date. Therefore, the Group bears risks of changes in
the securities market and real estate market prices.
The Group closely follows impacts of price changes to the Company’s securities investment price and real estate price risks. The
Group takes no measure to prevent other price risks currently.The management is responsible for monitoring the other price risks.
2. Capital management
The Group’s capital management aims to ensure continuous operation of the Group, provide returns for shareholders, help other
interested parties make benefit, and maintain the best capital structure and lower capital cost.
The Group may adjust the dividend distributed to shareholders, issue new shares or sell assets to maintain or adjust the capital
structure.
The Group monitors the capital structure based on the assets/liability ratio. On 31.12.18, the Group’s assets/liability ratio is 51.26%
(December 31, 2017: 57.52%).
XI. Fair Value
1. Closing fair value of assets and liabilities measured at fair value
In RMB
Closing fair value
Item
First level fair value Second level fair value Third level fair value Total
1. Continuous fair value
-- -- -- --
measurement
2. Leased building 5,234,401,663.38 5,234,401,663.38
Total assets measured at
5,234,401,663.38 5,234,401,663.38
fair value continuously
Derivative
1,625,725.00 1,625,725.00
financial liabilities
Total assets measured at
1,625,725.00 1,625,725.00
fair value continuously
2. Discontinuous fair
-- -- -- --
value measurement
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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;
Valuation technique and qualitative and quantitative information for key parameters of continuous and
discontinuous second level fair value items
For investment in real estate similar with real estate transaction, the Group uses valuation techniques to determine its fair value. The
technique is comparison and earning method. Inputs include transaction date, status, region and other factors.
4. Switch between different levels, switch reason and switching time policy
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.
5. Fair value of financial assets and liabilities not measured at fair value
Financial assets and liabilities measured at amortized cost include: monetary capital, bills receivable, accounts receivable, other
receivables, short-term borrowings, notes payable, accounts payables, other payables, and long-term payables.
The difference between book value and fair value of financial assets and liabilities not measured at fair value is small.
XII. Related Parties and Transactions
1. Parent of the Company
Share of the parent Voting power of the
Parent Registered address Business Registered capital
co. in the Company parent company
Shenzhen Banglin
Technologies
Shenzhen Industrial investment 3,000.00 9.85% 9.85%
Development Co.,
Ltd.
Gong Qing Cheng
Shi Li He
Investment
Management Jiujiang Industrial investment 1,978.0992 2.33% 2.33%
Partnership
Enterprise (limited
partner)
Shengjiu Investment
Hong Kong Industrial investment HKD1.00 8.16% 8.16%
Ltd.
Particulars about the parent of the Company
1. All of the investors of Shenzhen Banglin Technology Development Co., Ltd., the holding shareholder of the Company, are natural
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方大集团股份有限公司 2018 年年度报告全文
persons. Among them, Chairman XiongJianming is holding 85% of the shares, and Mr. Xiong Xi – son of Mr. XiongJianming, is
holding 15% of the shares.
2. Among the top 10 shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu Investment Co., Ltd. are
parties action-in-concert. Shenzhen Banglin Technology Development Co., Ltd. and Gong Qing Cheng Shi Li He Investment
Management Partnership Enterprise are related parties. The Company is not notified of other action-in-concert or related parties
among the other holders of current shares.
The final controller of the Company is XiongJianming.
Others:
2. Subsidiaries of the Company
See Note IX. 1.
3. Joint ventures and associates
See Note IX. 2 for details of significant joint ventures and associates of the Company.
Information about other joint ventures or associates with related transactions in this period or with balance generated by related
transactions in previous period:
Joint venture or associate Relationship with the Company
Shenzhen Ganshang Joint Investment Co., Ltd. Associate
Shenzhen HuihaiYirong Internet Service Co., Ltd. Associate
Jiangxi Business Innovative Property Joint Stock Co., Ltd. Associate
Shenzhen ZhongrongLitai Investment Co. Ltd. (ZhongrongLitai) JV
Other note
ZhongrongLitai Company was acquired by the project company for the development of Dakang Village. The cooperation agreement
stipulated the acquisition of 100% equity. As of December 31 2018 Fangda Real Estate Co. Ltd. the subsidiary of the Company did
not actually pay the investment funds. The agreement pays the deposit the industrial and commercial procedures have been changed
and the 55% of the shares are held which is in the common control stage.
4. Other associates
Other related parties Relationship with the Company
Shenzhen Qijian Technology Co., Ltd. (Qijian Technology) Common actual controller
Director, manager and secretary of the Board Key management
Shenyang party big semiconductor lighting co., LTD. (hereinafter
The liquidation of the subsidiary
referred to as "shenyang party big company)
Shenzhen varlk semiconductor lighting co., LTD. (hereinafter
The liquidation of the youthful
referred to as "shenzhenvarlk company)
Other note
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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 33,117.82 20,126.65
goods
Property service and sales of
Ganshang Joint Investment 10,121.77 8,434.81
goods
Notes about related transactions for purchase and sale of goods, provision and acceptance of services
(2) Related leasing
The Company is the leasor:
In RMB
Name of the leasee Category of asset for lease Rental recognized in the period Rental recognized in the period
Ganshang Joint Investment Houses & buildings 131,516.47 125,775.90
Qijian Technology Houses & buildings 303,164.32 179,744.00
(3) Related guarantees
The Company is the guarantor:
In RMB
Beneficiary party Amount guaranteed Start date Due date Completed or not
FangdaJianke 300,000,000.00 18.08.18 31.07.20 No
FangdaJianke 100,000,000.00 12.06.18 11.06.19 No
FangdaJianke 200,000,000.00 10.04.18 09.04.19 No
FangdaZhichuang 216,000,000.00 06.08.18 12.07.20 No
FangdaZhichuang 150,000,000.00 08.03.18 08.03.19 No
Fangda New Material 65,000,000.00 01.06.18 01.05.19 No
Fangda New Material 80,000,000.00 01.06.18 27.11.19 No
Fangda Property 1,300,000,000.00 03.02.15 02.02.23 No
The Company is the guarantied party:
In RMB
Gurantor Amount guaranteed Start date Due date Completed or not
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方大集团股份有限公司 2018 年年度报告全文
FangdaJianke and
600,000,000.00 22.02.18 22.02.19 No
FangdaZhichuang
FangdaJianke 250,000,000.00 29.09.18 29.09.19 No
Note to related guarantees
1. The above-mentioned guarantees are all associated guarantees within interested entities of the Group.
2. HSBC has a total credit of RMB 90 million to the Company, FangdaJianke and FangdaZhichuang and has not yet agreed on the
credit expiration date. HSBC regularly evaluates the credit status. The restriction on the use of the credit is as follows:
The company can use non-financial bank guarantees of up to 90 million yuan to grant credit;
FangdaJianke 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.
FangdaZhichuang 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 RMB50 million.
(4) Remuneration of key management
In RMB
Item Amount occurred in the current period Occurred in previous period
Directors, supervisors and senior
7,215,982.18 9,281,475.55
management
6. Receivable and payables due with related parties
(1) Receivable interest
In RMB
Closing balance Opening balance
Project Affiliated party Remaining book Remaining book
Bad debt provision Bad debt provision
value value
Account receivable Qijian Technology 957.79 28.73 735.00 7.35
Other receivables Shenyang Fangda 42,877.00 42,877.00 42,877.00 1,286.31
Other receivables Shenzhen Woke 865,802.94 865,802.94 865,802.94 86,580.29
Other receivables ZhongrongLitai 8,580,127.08 257,403.81
Note If the related party transaction is settled on a net basis the amount due from the related party can be offset by the amount.
XIII. Contingent events
1. Major commitments
Major commitments that exist on the balance sheet day
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方大集团股份有限公司 2018 年年度报告全文
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 FangdaBangshen 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 31.12.18, Fangda Real Estate has paid a deposit of
RMB 20,000,000.
(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 QianhaiZhongzhengDingfeng No. 6 Investment Enterprise (Limited Partnership) (Party B2),
"Shenzhen HenggangDakang 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 December 31 2018, Fangda Real Estate has paid a guarantee deposit of RMB50 million to Party B
and the project company and has paid RMB20 million service fee.
(3) The sales contract of Fangda Plaza developed by Fangda Real Estate Co. Ltd., a subsidiary of the Company, stipulates that if the
buyer cannot obtain the "Property Certificate" according to the agreed time limit calculated from the date of the delivery of the house
due to the seller's reasons, the seller shall bear the liability for breach of contract as of 2018. The number of sets that have not been
issued for delivery on December 31 of the year is 439 sets.
The Company has no other commitments that should be disclosed by 31.12.18.
2. Contingencies
(1) Significant contingencies on the balance sheet date
(1) Contingent liabilities formed by material lawsuit or arbitration, and their influences on the financial position
In June 2015, FangdaJianke filed a lawsuit against Wang Weihong, requiring an indemnity of RMB23 million and defreezing of the
amount RMB23 million by the bank. On June 21 2018, the First Intermediate People's Court of Chongqing Municipality made the
first-instance judgment and (2008) JuyiZhongfaMinzi No. 01205 civil judgment verdict Wang Weihong paid to FangdaJianke
Company within 10 days from the effective date of the judgment. The material amount of RMB 6,611,425.54 the paid project
department and construction team salary is 1,292,336.08 yuan the tax paid is 227,909.13 yuan the deduction of his case is executed
the execution amount is 1,150,000.00 yuan and the overdue interest is 4,688,191.35 yuan totaling 13,969,862.10 yuan. FangdaJianke
Company refused to accept the compensation amount for the first-instance judgment and filed an appeal. At the same time, Wang
Weihong also filed an appeal. As of the date of this report, the second instance has not yet been decided.
On November 27 2018 FangdaJianke Company a subsidiary of the Group filed a lawsuit against Quanzhou Hengan Generation
Venture Capital Co. Ltd. for Quanzhou Hengan Generation Venture Capital Co. Ltd. for the payment of 10394232.91 yuan and
overdue interest payment of 1911122.36 yuan totaling 12305355.27 yuan 2019. It was formally opened on January 21 and has not yet
been decided.
In November 2018，FangdaJianke a subsidiary of the Group sued Fujian Huapu Real Estate Development Co. Ltd. for a payment of
RMB 13810243.67 and its overdue interest payment of RMB 3044545.82 totaling RMB 16854789.49 to the Taijiang District
People's Court of Fuzhou City. The case has been filed yet.
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方大集团股份有限公司 2018 年年度报告全文
(2) Pending major lawsuits
On September 6, 2017, Chenghua District People's Court of Chengdu Municipality sentenced Sichuan ChutaHengyuan Industrial Co.,
Ltd. to pay construction money to FangdaJianke within 10 days from the date of the verdict 川 0108 民 初 1828 号
RMB10,242,182.99.As of the date of this report, FangdaJianke has applied for execution and has not received the relevant payment.
On September 10 2018， the People's Court of Lixia District of Jinan City sentenced Shandong Zhonghong Real Estate Co. Ltd. to
the Company for payment of 5960429.45 yuan within 10 days from the date of the effective date of the (2018) Lu 0102 Minchu 5367
civil judgment. As of the date of this report, FangdaJianke has applied for execution and has not received the relevant payment.
(3) Contingent liabilities formed by providing of guarantee to other companies’ debts and their influences on financial situation
By December 31, 2013, the Company has provided loan guarantees for the following entities:
Name of guaranteed entity Guarantee Amount (in Start date End date
RMB10,000)
Fangda Property Pledge guarantee 2,490.49 2015/11/6 2023/2/11
Fangda Property Pledge guarantee 545.76 2015/11/20 2023/2/11
Fangda Property Pledge guarantee 2388.91 2015/12/9 2023/2/11
Fangda Property Pledge guarantee 4,614.39 2015/12/28 2023/2/11
Fangda Property Pledge guarantee 4241.27 2016/1/26 2023/2/11
Fangda Property Pledge guarantee 4,260.74 2016/1/29 2023/2/11
Fangda Property Pledge guarantee 343.47 2016/3/28 2023/2/11
Fangda Property Pledge guarantee 3,615.06 2016/4/27 2023/2/11
Fangda Property Pledge guarantee 1,157.69 2016/5/22 2023/2/11
Fangda Property Pledge guarantee 414.66 2016/5/30 2023/2/11
Fangda Property Pledge guarantee 3,113.99 2016/6/13 2023/2/11
Fangda Property Pledge guarantee 1,465.99 2016/6/24 2023/2/11
Fangda Property Pledge guarantee 4415.64 2016/7/26 2023/2/11
Fangda Property Pledge guarantee 4,813.23 2016/8/15 2023/2/11
Fangda Property Pledge guarantee 5,519.40 2016/9/7 2023/2/11
Fangda Property Pledge guarantee 15,048.01 2016/10/8 2023/2/11
Fangda Property Pledge guarantee 7,628.15 2016/11/7 2023/2/11
Fangda Property Pledge guarantee 6,140.11 2016/11/30 2023/2/11
Fangda Property Pledge guarantee 9,889.21 2017/1/19 2023/2/11
Fangda Property Pledge guarantee 1,830.24 2017/5/31 2023/2/11
Fangda Property Pledge guarantee 2,581.45 2017/6/28 2023/2/11
Fangda Property Pledge guarantee 2,879.95 2017/8/30 2023/2/11
Total 89,397.81
Note: Contingent liabilities caused by guarantees provided for other entities are all related guarantees between interested entities in
the Group.
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方大集团股份有限公司 2018 年年度报告全文
(4) Providing guarantee for property purchasers
The Group’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. By December 31, 2018, the Company has provided periodic guarantee of RMB778 million.
On 31.12.18, the Company has no other contingent events that should be disclosed.
(2) Significant contingent events that do not need to be disclosed should be explained
No such significant contingent event
XIV. Post-balance-sheet events
1. Profit distribution
In RMB
Profit or dividend to be distributed 224,676,837.80
Profit or dividend approved to be distributed 224,676,837.80
2. Notes to other issues in post balance sheet period
The Company held the 10th meeting of the 8th Board of Directors and the 1st Extraordinary General Meeting of Shareholders in
2018 on September 10 2018 and September 27 2018 respectively and reviewed and approved the repurchase of some domestically
listed foreign shares (B shares) from January 1 2019 to January 3 2019 of 28,427,250 shares through a centralized bidding method.
The highest price was HK$3.58 per share, the lowest price was HK$3.31 per share and the actual payment was HK$100700189.39
(including transaction costs). The company has completed the repurchase and cancellation of 320,97,497.00 shares (including
3670247.00 shares that have been repurchased on December 31, 2018) on January 11, 2019.
On 28.01.19, the Company has no other contingent events that should be disclosed.
XV. Other material events
1. Suspension of operations
In RMB
Suspended
operation profit
Income tax
Item Income Expense Total profit Net profit attributable to the
expenses
owners of parent
company
Suspension of
220,214.40 -220,214.40 -220,214.40 -220,214.40
operations
Other note
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方大集团股份有限公司 2018 年年度报告全文
Shenyang Decoration completed the industrial and commercial cancellation procedures in April 2018. KeXunda completed the tax
cancellation in November 2018 and the industrial and commercial cancellation procedures have not been completed by the reporting
date.
(2) The net profit of termination of operations in 2018 includes KeXunda's net profit for the period is -220214.40 yuan.
(3) The discontinued operating net profit for 2017 includes: Shenyang Decoration's net profit for the current period of RMB
-8,074.07, Fangda Aluminum’s net profit for the period of RMB 6,340,920.55, and Fangda SOZN’s net profit for the period of RMB
16,606,951.20.
2. Segment information
(1) Recognition basis and accounting policy for segment report
The Group divides its businesses into five reporting segments. The reporting segments are determined based on financial information
required by routine internal management. The Group’s management regularly review the operating results of the reporting segments
to determine resource distribution and evaluate their performance.
The reporting segments are:
(1) Curtain wall segment, production and sales of curtain wall materials, construction curtain wall design, production and installation;
(2) Rail transport segment: assembly and processing of metro screen doors;
(3) Real estate segment: development and operating of real estate on land of which land use right is legally obtained by the Company;
property management;
(4) New energy segment, R&D, installation and sales of PV devices, design and construction of PV power plants; R&D, design,
production, sales and installation of light accessories, and other lights, LED products and hardware.
(5) Others
The segment report information is disclosed based on the accounting policies and measurement standards used by the segments when
reporting to the management. The policies and standards should be consistent with those used in preparing the financial statement.
(2) Financial information
In RMB
Offset between
Item Curtain wall Rail transport Real estate New energy Others Total
segments
2,013,294,159. 3,048,680,152.
Turnover 297,686,976.09 701,427,764.66 20,475,462.99 30,820,705.56 15,024,916.45
21 06
Including: 2,010,704,004. 3,048,680,152.
297,686,976.09 697,518,090.10 19,625,478.18 23,145,602.73 0.00
external 96 06
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方大集团股份有限公司 2018 年年度报告全文
transaction
income
Inter-segment
transaction 2,590,154.25 3,909,674.56 849,984.81 7,675,102.83 15,024,916.45
income
Including:
1,985,502,123. 2,987,575,699.
major business 294,941,334.54 691,416,438.03 20,475,462.99 4,759,659.39
31 48
turnover
1,721,556,010. 2,337,948,010.
Operation cost 222,509,233.98 399,820,333.15 7,723,226.59 1,604,559.26 15,265,352.73
17 42
Including:
1,704,411,374. 2,314,151,985.
major business 222,027,603.18 393,698,880.58 7,723,226.59 1,604,559.26 15,313,658.45
49 65
cost
-2,560,679,393. -188,435,404.9 -2,259,232,581.
Operation cost 34,962,227.67 19,856,814.30 1,743,249.36 56,449,116.61
86 2 00
Operating 2,862,286,825. 2,969,964,722.
256,775,921.37 55,320,927.81 11,008,987.04 -27,232,970.31 188,194,968.64
profit/(loss) 37 64
3,346,940,616. 6,314,228,331. 2,864,290,133. 2,535,863,099. 10,658,854,133
Total assets 494,834,450.82 174,423,700.91
51 13 79 43 .73
2,152,419,243. 3,141,101,213. 1,188,122,606. 1,398,097,071. 5,463,666,511.
Total liabilities 281,239,506.31 98,881,013.81
80 37 46 90 85
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.
XVI. Notes to Financial Statements of the Parent
1. Receivable note and accounts receivable
In RMB
Item Closing balance Opening balance
Notes receivable 200,000,000.00
Account receivable 471,039.12 408,154.54
Total 200,471,039.12 408,154.54
(1) Notes receivable
1) Classification of notes receivable
In RMB
Item Closing balance Opening balance
Commercial acceptance 200,000,000.00
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方大集团股份有限公司 2018 年年度报告全文
Total 200,000,000.00
(2) Account receivable
1) Account receivable disclosed by categories
In RMB
Closing balance Opening balance
Remaining book Remaining book
Bad debt provision Bad debt provision
Type value Book value
Book value
Proportio Provision value Proportio Provision
Amount Amount Amount Amount
n rate n rate
Recognition and
485,607. 14,568.2 471,039.1 420,777
providing of bad debt 100.00% 3.00% 100.00% 12,623.34 3.00% 408,154.54
34 2 2 .88
provisions on groups
485,607. 14,568.2 471,039.1 420,777
Total 100.00% 3.00% 100.00% 12,623.34 3.00% 408,154.54
34 2 2 .88
Account receivable with major individual amount and bad debt provision provided individually at the end of the period:
□ Applicable √ Inapplicable
In the group, the account receivable of which bad debt provision is made through the account aging method:
√ Applicable □ Inapplicable
In RMB
Closing balance
Age
Account receivable Bad debt provision Provision rate
Sub-item of within 1 year
Less than 1 year 485,607.34 14,568.22 3.00%
Subtotal for less than 1 year 485,607.34 14,568.22 3.00%
Total 485,607.34 14,568.22 3.00%
Group recognition basis:
Account receivable adopting the balance percentage method in the group
2) Bad debt provision made, returned or recovered in the period
A bad debt provision of RMB1,944.88 was made in the period. RMB0.00 was recovered or reversed. 3) Balance of top 5 accounts
receivable at the end of the period
The total balance of top-five accounts receivable at the end of the period is RMB4,517,278,600, accounting for 93.02% of the total
remaining balance of all accounts receivable. The bad debt provision made at the end of the period is RMB135,518,400.
2. Other receivables
In RMB
Item Closing balance Opening balance
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方大集团股份有限公司 2018 年年度报告全文
Interest receivable 1,020,000.00
Dividend receivable 100,000,000.00 150,000,000.00
Other receivables 722,543,653.04 672,773,780.45
Total 822,543,653.04 823,793,780.45
Note: The other receivables in the above table refer to other receivables after deducting interest receivable and dividends receivable.
(1) Receivable interest
1) Receivable interest
In RMB
Item Closing balance Opening balance
Bank financial products 1,020,000.00
Total 1,020,000.00
2. Receivable dividend
1. Receivable dividend
In RMB
Item (or invested entity) Closing balance Opening balance
Fangda Property 100,000,000.00 150,000,000.00
Total 100,000,000.00 150,000,000.00
(3) Other receivables
1) Other receivables disclosed by categories
In RMB
Closing balance Opening balance
Remaining book Remaining book
Bad debt provision Bad debt provision
Type value Book value
Book value
Proportio Provision value Proportio Provision
Amount Amount Amount Amount
n rate n rate
Other receivables
with major individual
13,030,0 13,030,0 13,150, 13,150,00
amount and bad debt 1.77% 100.00% 1.92% 100.00%
00.00 00.00 000.00 0.00
provision provided
individually
(2) Recognition and
722,647, 104,219. 722,543,6 672,959 186,183.1 672,773,78
providing of bad debt 98.11% 0.01% 98.08% 0.03%
872.78 74 53.04 ,963.61 6 0.45
provisions on groups
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方大集团股份有限公司 2018 年年度报告全文
Other receivables
with minor individual
908,679. 908,679.
amount and bad debt 0.12% 100.00%
94 94
provision provided
individually
736,586, 14,042,8 722,543,6 686,109 13,336,18 672,773,78
Total 100.00% 1.91% 100.00% 1.94%
552.72 99.68 53.04 ,963.61 3.16 0.45
Other receivables with major individual amount and bad debt provision provided individually at the end of the period:
√ Applicable □ Inapplicable
In RMB
Other receivables (by Closing balance
entity) Other receivables Bad debt provision Provision rate Reason
Luo Huichi 13,030,000.00 13,030,000.00 100.00% Unrecoverable
Total 13,030,000.00 13,030,000.00 -- --
In the group, the other receivables of which bad debt provision are made through the account aging method:
√ Applicable □ Inapplicable
In RMB
Closing balance
Age
Other receivables Bad debt provision Provision rate
Sub-item of within 1 year
Less than 1 year 1,117,339.95 3,520.20 3.00%
Subtotal for less than 1 year 117,339.95 3,520.20 3.00%
Over 5 years 100,699.54 100,699.54 100.00%
Total 218,039.49 104,219.74 47.80%
Group recognition basis:
Other receivables adopting the balance percentage method in the group:
□ Applicable √ Inapplicable
Other receivables adopting other methods in the group
□ Applicable √ Inapplicable
2) Bad debt provision made, returned or recovered in the period
A bad debt provision of RMB706,716.52 was made in the period. RMB0.00 was recovered or reversed.
3) Other receivables are disclosed by nature
In RMB
By nature Closing balance of book value Opening balance of book value
Associate accounts 722,429,833.29 671,896,683.41
Other trades 14,156,719.43 14,213,280.20
Total 736,586,552.72 686,109,963.61
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方大集团股份有限公司 2018 年年度报告全文
4) Balance of top 5 other receivables at the end of the period
In RMB
Balance of bad debt
Entity By nature Closing balance Age Percentage (%) provision at the end
of the period
FangdaJianke Associate accounts 473,183,777.60 Less than 1 year 64.24%
Fangda New Energy Associate accounts 90,710,949.29 Less than 1 year 12.32%
Fangda New Material Associate accounts 84,333,277.85 Less than 1 year 11.45%
Shihui International Associate accounts 30,459,793.09 Less than 1 year 4.14%
Jiangxi Property
Associate accounts 27,845,287.03 Less than 1 year 3.78%
Development
Total -- 706,533,084.86 -- 95.93%
3. Long-term share equity investment
In RMB
Closing balance Opening balance
Item Remaining book Impairment Remaining book Impairment
Book value Book value
value provision value provision
Investment in
983,339,494.35 983,339,494.35 925,349,494.35 925,349,494.35
subsidiaries
Total 983,339,494.35 983,339,494.35 925,349,494.35 925,349,494.35
(1) Investment in subsidiaries
In RMB
Balance of
Provision made in impairment
Invested entity Opening balance Increase Decrease Closing balance
this period provision at the
end of the period
FangdaJianke 491,950,000.00 491,950,000.00
FangdaZhichuang 18,831,241.35 18,831,241.35
Fangda New
74,496,600.00 74,496,600.00
Material
Fangda Property 200,000,000.00 200,000,000.00
Shihui
61,653.00 61,653.00
International
Hongjun
40,010,000.00 57,990,000.00 98,000,000.00
Investment
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方大集团股份有限公司 2018 年年度报告全文
Company
Fangda New
100,000,000.00 100,000,000.00
Energy
Total 925,349,494.35 57,990,000.00 983,339,494.35
4. Operational revenue and costs
In RMB
Amount occurred in the current period Occurred in previous period
Item
Income Cost Income Cost
Other businesses 30,830,762.76 1,604,559.26 29,333,583.31 2,041,826.84
Total 30,830,762.76 1,604,559.26 29,333,583.31 2,041,826.84
Others:
5. Investment income
In RMB
Item Amount occurred in the current period Occurred in previous period
Gains from long-term equity investment
117,000,000.00 150,000,000.00
measured by costs
Gains from long-term equity investment
-2,142,252.28
measured by equity
Investment gain obtained from disposal of
5,037,221.60
long-term equity investment
Investment gain obtained from disposal of
financial assets measured at fair value with
23,142,680.38 77,348,884.05
variations accounted into current income
account
Investment gain obtained from disposal of
financial assets measured at fair value with
-22,524,021.60 -77,045,286.87
variations accounted into current income
account
Investment gain of financial products 6,515,338.51 4,941,935.94
Others -2,000.00
Total 124,133,997.29 158,138,502.44
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方大集团股份有限公司 2018 年年度报告全文
XVII. Supplementary Materials
1. Detailed accidental gain/loss
√ Applicable □ Inapplicable
In RMB
Item Amount Notes
Gain/loss of non-current assets -5,080,792.02
Subsidies accounted into the current income
account (except the government subsidy
closely related to the enterprise’s business 5,931,937.15
and based on unified national standard
quota)
Capital using expense charged to
non-financial enterprises and accounted into 922,330.10
the current income account
Gain from entrusted investment or assets
27,065,331.33
management
Gain/loss from change of fair value of
transactional financial asset and liabilities,
and investment gains from disposal of
transactional financial assets and liabilities -1,192,774.07
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 value 2,916,598,485.48
in follow-up measurement
Other non-business income and expenditures
1,675,521.71
other than the above
Less: Influenced amount of income tax 720,926,531.10
Total 2,224,993,508.58 --
Note: Each non-recurring profit and loss item is presented based on the pre-tax amount.
Explanation statement should be made for accidental gain/loss items defined and accidental
gain/loss items defined as regular gain/loss items according to the Explanation Announcement of
Information Disclosure No. 1 - Non-recurring gain/loss mentioned.
□ Applicable √ Inapplicable
2. Net income on asset ratio and earning per share
Profit of the report period Weighted average net income/asset ratio Earning per share
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方大集团股份有限公司 2018 年年度报告全文
Basic earnings per share Diluted Earnings per
(yuan/share) share (yuan/share)
Net profit attributable to common
53.17% 1.91 1.91
shareholders of the Company
Net profit attributable to the
common owners of the PLC after
0.50% 0.02 0.02
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
Chapter XII Documents for Reference
1. The Annual Report 2018 and the Summary with signature of the legal representative (Chinese and English);
2. Accounting Statements with signatures and seals of the legal representative and financial principal and chief of
accounting department;
3. Original copy of the Auditors’ Report under the seal of the CPA and signed by and under the seal of certified
accountants.
4. Originals of all documents and manuscripts of Public Notices of the Company disclosed in public in the
newspapers as designated by China Securities Regulatory Commission.
200
