Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
China Fangda Group Co., Ltd.
2020 Financial Statements
August 2020
1
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
I. Auditor’s report
Whether the interim report is audited
□ Yes √ No
The financial statements for H1 2014 have not been audited.
II. Financial statements
Unit for statements in notes to financial statements: RMB yuan
1. Consolidated Balance Sheet
Prepared by: China Fangda Group Co., Ltd.
30 June 2020
In RMB
Item 30 June 2020 31 December 2019
Current asset:
Monetary capital 1,056,919,254.36 1,209,811,978.95
Settlement provision
Outgoing call loan
Transactional financial assets 18,005,336.72 10,330,062.18
Derivative financial assets 1,815,676.34
Notes receivable 164,526,921.14 305,070,930.97
Account receivable 564,418,018.59 1,956,191,307.07
Receivable financing 300,000.00 2,954,029.00
Prepayment 34,919,388.83 21,327,109.18
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance
contracts receivable
Other receivables 158,674,891.12 139,947,655.35
Including: interest receivable
Dividend receivable
Repurchasing of financial assets
Inventory 779,903,495.46 733,711,143.46
Contract assets 1,699,157,345.00
Assets held for sales
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Non-current assets due in 1 year
Other current assets 329,749,353.10 323,765,585.90
Total current assets 4,808,389,680.66 4,703,109,802.06
Non-current assets:
Loan and advancement provided
Debt investment
Other debt investment
Long-term receivables
Long-term share equity investment 56,847,038.74 57,222,240.83
Investment in other equity tools 20,140,037.85 20,660,181.44
Other non-current financial assets 5,018,835.30 5,009,728.02
Investment real estate 5,517,829,915.07 5,522,391,984.11
Fixed assets 484,397,283.68 477,332,830.92
Construction in process 138,881,024.27 129,988,982.86
Productive biological assets
Gas & petrol
Use right assets
Intangible assets 76,261,073.30 78,322,265.05
R&D expense
Goodwill
Long-term amortizable expenses 3,962,850.60 3,875,198.12
Deferred income tax assets 333,037,735.20 343,349,564.70
Other non-current assets 37,015,653.00 28,701,802.00
Total of non-current assets 6,673,391,447.01 6,666,854,778.05
Total of assets 11,481,781,127.67 11,369,964,580.11
Current liabilities
Short-term loans 1,280,635,666.66 724,618,197.34
Loans from Central Bank
Call loan received
Transactional financial liabilities
Derivative financial liabilities 96,767.62
Notes payable 531,478,369.23 578,816,027.44
Account payable 1,106,597,460.59 1,190,773,300.24
Prepayment received 4,195,179.31 136,340,104.73
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Contract liabilities 136,799,464.76
Selling of repurchased financial
assets
Deposit received and held for
others
Entrusted trading of securities
Entrusted selling of securities
Employees' wage payable 24,593,468.01 55,847,134.20
Taxes payable 21,287,400.76 17,848,987.68
Other payables 712,243,884.21 701,432,408.28
Including: interest payable
Dividend payable
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liabilities due in 1
151,617,767.59 922,346,563.72
year
Other current liabilities 61,298,475.68 181,694,574.47
Total current liabilities 4,030,747,136.80 4,509,814,065.72
Non-current liabilities:
Insurance contract provision
Long-term loans 1,151,161,462.35 546,501,491.56
Bond payable
Including: preferred stock
Perpetual bond
Lease liabilities
Long-term payable
Long-term employees’ wage
payable
Anticipated liabilities 4,426,285.92 7,793,527.16
Deferred earning 10,823,887.41 10,817,247.40
Deferred income tax liabilities 1,059,467,809.75 1,063,833,159.00
Other non-current liabilities
Total of non-current liabilities 2,225,879,445.43 1,628,945,425.12
Total liabilities 6,256,626,582.23 6,138,759,490.84
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Owner’s equity:
Share capital 1,088,278,951.00 1,123,384,189.00
Other equity instruments
Including: preferred stock
Perpetual bond
Capital reserves 1,454,191.59 1,454,191.59
Less: Shares in stock
Other miscellaneous income 465,523.75 -475,409.25
Special reserves
Surplus reserve 95,525,281.06 159,805,930.34
Common risk provisions
Undistributed profit 3,991,052,115.01 3,898,626,177.99
Total of owner’s equity belong to the
5,176,776,062.41 5,182,795,079.67
parent company
Minor shareholders’ equity 48,378,483.03 48,410,009.60
Total of owners’ equity 5,225,154,545.44 5,231,205,089.27
Total of liabilities and owner’s interest 11,481,781,127.67 11,369,964,580.11
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua
2. Balance Sheet of the Parent Company
In RMB
Item 30 June 2020 31 December 2019
Current asset:
Monetary capital 53,945,656.04 175,591,953.63
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 864,942.73 297,813.76
Receivable financing
Prepayment 68,553.45 250,205.32
Other receivables 2,365,126,667.11 1,973,381,342.74
Including: interest receivable
Dividend receivable
Inventory
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Contract assets
Assets held for sales
Non-current assets due in 1 year
Other current assets 972,396.46 877,430.41
Total current assets 2,420,978,215.79 2,150,398,745.86
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term share equity investment 1,065,202,785.05 963,508,253.00
Investment in other equity tools 18,604,010.22 18,604,010.22
Other non-current financial assets 30,000,001.00 48,831,242.35
Investment real estate 295,355,002.00 295,355,002.00
Fixed assets 66,247,900.80 67,361,529.52
Construction in process
Productive biological assets
Gas & petrol
Use right assets
Intangible assets 1,676,556.82 1,824,589.22
R&D expense
Goodwill
Long-term amortizable expenses 891,188.86 934,669.73
Deferred income tax assets 47,572,463.06 44,408,630.81
Other non-current assets
Total of non-current assets 1,525,549,907.81 1,440,827,926.85
Total of assets 3,946,528,123.60 3,591,226,672.71
Current liabilities
Short-term loans 500,347,916.67 300,442,988.19
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 606,941.85 606,941.85
Prepayment received 728,878.76 746,761.55
Contract liabilities
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Employees' wage payable 1,069,717.45 3,215,013.16
Taxes payable 794,988.70 312,647.89
Other payables 941,804,220.47 109,837,934.17
Including: interest payable
Dividend payable
Liabilities held for sales
Non-current liabilities due in 1
80,115,783.33 520,872,206.95
year
Other current liabilities
Total current liabilities 1,525,468,447.23 936,034,493.76
Non-current liabilities:
Long-term loans 70,000,000.00
Bond payable
Including: preferred stock
Perpetual bond
Lease liabilities
Long-term payable
Long-term employees’ wage
payable
Anticipated liabilities
Deferred earning
Deferred income tax liabilities 64,201,364.63 64,351,075.92
Other non-current liabilities
Total of non-current liabilities 64,201,364.63 134,351,075.92
Total liabilities 1,589,669,811.86 1,070,385,569.68
Owner’s equity:
Share capital 1,088,278,951.00 1,123,384,189.00
Other equity instruments
Including: preferred stock
Perpetual bond
Capital reserves 360,835.52 360,835.52
Less: Shares in stock
Other miscellaneous income 1,287,629.38 1,287,629.38
Special reserves
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Surplus reserve 95,525,281.06 159,805,930.34
Undistributed profit 1,171,405,614.78 1,236,002,518.79
Total of owners’ equity 2,356,858,311.74 2,520,841,103.03
Total of liabilities and owner’s interest 3,946,528,123.60 3,591,226,672.71
3. Consolidated Income Statement
In RMB
Item H1 2020 H1 2019
1. Total revenue 1,251,608,064.42 1,425,890,946.99
Incl. Business income 1,251,608,064.42 1,425,890,946.99
Interest income
Insurance fee earned
Fee and commission
received
2. Total business cost 1,157,918,504.87 1,281,585,400.17
Incl. Business cost 970,370,412.06 1,066,065,970.56
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy
responsibility reserves provided
Insurance policy dividend
paid
Reinsurance expenses
Taxes and surcharges 7,526,514.98 41,481,000.07
Sales expense 20,978,235.09 27,175,638.50
Administrative expense 62,559,463.16 82,678,777.56
R&D cost 51,599,310.87 14,702,673.12
Financial expenses 44,884,568.71 49,481,340.36
Including: interest cost 43,164,977.83 40,476,886.48
Interest income 6,952,304.21 2,439,090.91
Add: other gains 6,214,112.77 4,001,450.51
Investment gains (“-” for loss) -713,663.54 4,056,397.16
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Incl. Investment gains from
-375,202.09 -325,733.55
affiliates and joint ventures
Financial assets
-2,255,794.10
derecognised as a result of amortized cost
Exchange gains ("-" for loss)
Net open hedge gains (“-” for
loss)
Gains from change of fair value
9,107.28 121,506.67
(“-“ for loss)
Credit impairment ("-" for loss) 74,854,185.26 -4,369,660.38
Investment impairment loss
0.00
("-" for loss)
Investment gains ("-" for loss) -1,981.72 -27,108.78
3. Operational profit ("-" for loss) 174,051,319.60 148,088,132.00
Plus: non-operational income 275,841.64 4,873,892.15
Less: non-operational expenditure 5,275,868.33 378,565.80
4. Gross profit ("-" for loss) 169,051,292.91 152,583,458.35
Less: Income tax expenses 22,242,934.91 24,019,259.71
5. Net profit ("-" for net loss) 146,808,358.00 128,564,198.64
(1) By operating consistency
1. Net profit from continuous
146,808,358.00 128,570,716.39
operation ("-" for net loss)
2. Net profit from discontinuous
-6,517.75
operation ("-" for net loss)
(2) By ownership
1. Net profit attributable to the
146,839,884.57 128,581,755.01
owners of parent company
2. Minor shareholders’ equity -31,526.57 -17,556.37
6. After-tax net amount of other misc.
940,933.00 1,389,774.33
incomes
After-tax net amount of other misc.
940,933.00 1,389,774.33
incomes attributed to parent's owner
(1) Other misc. incomes that cannot
-520,143.59
be re-classified into gain and loss
1. Re-measure the change in
the defined benefit plan
2. Other comprehensive
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
income that cannot be transferred to
profit or loss under the equity method
3. Fair value change of
-520,143.59
investment in other equity tools
4. Fair value change of the
company's credit risk
5. Others
(2) Other misc. incomes that will be
1,461,076.59 1,389,774.33
re-classified into gain and loss
1. Other comprehensive
income that can be transferred to profit or
loss under the equity method
2. Fair value change of other
debt investment
3. Gains and losses from
changes in fair value of available-for-sale
financial assets
4. Other credit investment
credit impairment provisions
5. Cash flow hedge reserve 1,625,577.36 1,396,635.00
6. Translation difference of
-164,500.77 -6,860.67
foreign exchange statement
7. Others
After-tax net of other misc. income
attributed to minority shareholders
7. Total of misc. incomes 147,749,291.00 129,953,972.97
Total of misc. incomes attributable
147,780,817.57 129,971,529.34
to the owners of the parent company
Total misc gains attributable to the
-31,526.57 -17,556.37
minor shareholders
8. Earnings per share:
(1) Basic earnings per share 0.13 0.11
(2) Diluted earnings per share 0.13 0.11
Net profit contributed by entities merged under common control in the report period was RMB0.00, net profit realized by parties
merged during the previous period is RMB0.00.
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
4. Income Statement of the Parent Company
In RMB
Item H1 2020 H1 2019
1. Turnover 12,719,395.10 17,142,022.88
Less: Operation cost 151,219.77 3,496,588.06
Taxes and surcharges 677,865.78 645,703.49
Sales expense
Administrative expense 11,316,043.39 11,286,569.85
R&D cost
Financial expenses 14,753,727.62 21,369,380.01
Including: interest cost 15,820,677.77 17,322,986.12
Interest income 1,914,893.50 351,128.89
Add: other gains 295,818.89 234,066.99
Investment gains (“-” for loss) 338,561.17 1,155,183.42
Incl. Investment gains from
affiliates and joint ventures
Financial assets
derecognised as a result of amortized
cost ("-" for loss)
Net open hedge gains (“-” for
loss)
Gains from change of fair
value (“-“ for loss)
Credit impairment ("-" for
-2,277.86 4,732.39
loss)
Investment impairment loss
("-" for loss)
Investment gains ("-" for loss)
2. Operational profit (“-” for loss) -13,547,359.26 -18,262,235.73
Plus: non-operational income 51,867.26 13,947.68
Less: non-operational expenditure 1,008.00 106,388.64
3. Gross profit ("-" for loss) -13,496,500.00 -18,354,676.69
Less: Income tax expenses -3,313,543.54 -4,545,338.46
4. Net profit (“-” for net loss) -10,182,956.46 -13,809,338.23
(1) Net profit from continuous -10,182,956.46 -13,809,338.23
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
operation ("-" for net loss)
(2) Net profit from discontinuous
operation ("-" for net loss)
5. After-tax net amount of other misc.
incomes
(1) Other misc. incomes that
cannot be re-classified into gain and
loss
1. Re-measure the change
in the defined benefit plan
2. Other comprehensive
income that cannot be transferred to
profit or loss under the equity method
3. Fair value change of
investment in other equity tools
4. Fair value change of the
company's credit risk
5. Others
(2) Other misc. incomes that will
be re-classified into gain and loss
1. Other comprehensive
income that can be transferred to profit
or loss under the equity method
2. Fair value change of
other debt investment
3. Gains and losses from
changes in fair value of
available-for-sale financial assets
4. Other credit investment
credit impairment provisions
5. Cash flow hedge reserve
6. Translation difference of
foreign exchange statement
7. Others
6. Total of misc. incomes -10,182,956.46 -13,809,338.23
7. Earnings per share:
(1) Basic earnings per share
(2) Diluted earnings per share
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
5. Consolidated Cash Flow Statement
In RMB
Item H1 2020 H1 2019
1. Net cash flow from business
operations:
Cash received from sales of
1,148,453,499.83 1,201,792,721.87
products and providing of services
Net increase of customer deposits
and capital kept for brother company
Net increase of loans from central
bank
Net increase of inter-bank loans
from other financial bodies
Cash received against original
insurance contract
Net cash received from reinsurance
business
Net increase of client deposit and
investment
Cash received as interest,
processing fee, and commission
Net increase of inter-bank fund
received
Net increase of repurchasing
business
Net cash received from trading
securities
Tax refunded 3,698,239.91 1,495,878.35
Other cash received from business
213,941,117.36 48,007,747.43
operation
Sub-total of cash inflow from business
1,366,092,857.10 1,251,296,347.65
operations
Cash paid for purchasing products
993,332,051.36 977,060,414.15
and services
Net increase of client trade and
advance
Net increase of savings in central
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
bank and brother company
Cash paid for original contract
claim
Net increase in funds dismantled
Cash paid for interest, processing
fee and commission
Cash paid for policy dividend
Cash paid to and for the staff 166,379,960.84 162,220,114.55
Taxes paid 66,683,039.19 177,525,390.09
Other cash paid for business
276,683,285.11 307,215,431.97
activities
Sub-total of cash outflow from business
1,503,078,336.50 1,624,021,350.76
operations
Cash flow generated by business
-136,985,479.40 -372,725,003.11
operations, net
2. Cash flow generated by investment:
Cash received from investment
2,502,405,357.62 2,093,521,250.01
recovery
Cash received as investment profit 9,253,861.27 21,362,317.22
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 13,165,854.60
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash
250.00
received
Sub-total of cash inflow generated from
2,511,659,468.89 2,128,049,421.83
investment
Cash paid for construction of fixed
assets, intangible assets and other 69,438,943.88 90,816,069.59
long-term assets
Cash paid as investment 2,509,460,000.00 2,555,019,000.00
Net increase of loan against pledge
Net cash paid for acquiring
61,934,830.31
subsidiaries and other operational units
Other cash paid for investment
Subtotal of cash outflows 2,578,898,943.88 2,707,769,899.90
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Cash flow generated by investment
-67,239,474.99 -579,720,478.07
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
2,304,697,876.18 800,000,000.00
loans
Other cash received from financing
39,406.61
activities
Subtotal of cash inflow from financing
2,304,697,876.18 800,039,406.61
activities
Cash paid to repay debts 1,813,978,153.39 108,000,000.00
Cash paid as dividend, profit, or
119,588,570.23 275,410,279.99
interests
Incl. Dividend and profit paid by
subsidiaries to minority shareholders
Other cash paid for financing
281,298,965.99 40,000,000.00
activities
Subtotal of cash outflow from financing
2,214,865,689.61 423,410,279.99
activities
Net cash flow generated by financing
89,832,186.57 376,629,126.62
activities
4. Influence of exchange rate changes
1,284,254.96 -229,009.27
on cash and cash equivalents
5. Net increase in cash and cash
-113,108,512.86 -576,045,363.83
equivalents
Plus: Balance of cash and cash
725,269,902.90 956,190,890.68
equivalents at the beginning of term
6. Balance of cash and cash equivalents
612,161,390.04 380,145,526.85
at the end of the period
6. Cash Flow Statement of the Parent Company
In RMB
Item H1 2020 H1 2019
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
1. Net cash flow from business
operations:
Cash received from sales of
8,683,073.96 14,039,967.56
products and providing of services
Tax refunded 232,652.87
Other cash received from business
2,914,427,921.50 1,674,530,421.33
operation
Sub-total of cash inflow from business
2,923,343,648.33 1,688,570,388.89
operations
Cash paid for purchasing products
406,441.27 1,824,577.30
and services
Cash paid to and for the staff 9,739,820.05 8,465,407.93
Taxes paid 793,263.98 1,250,265.96
Other cash paid for business
2,553,029,078.24 2,021,264,885.71
activities
Sub-total of cash outflow from business
2,563,968,603.54 2,032,805,136.90
operations
Cash flow generated by business
359,375,044.79 -344,234,748.01
operations, net
2. Cash flow generated by investment:
Cash received from investment
562,800,000.00 710,000,000.00
recovery
Cash received as investment profit 338,561.17 1,155,183.42
Net cash retrieved from disposal of
fixed assets, intangible assets, and other
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash
received
Sub-total of cash inflow generated from
563,138,561.17 711,155,183.42
investment
Cash paid for construction of fixed
assets, intangible assets and other 48,767.89 50,698.00
long-term assets
Cash paid as investment 562,800,000.00 746,000,001.00
Net cash paid for acquiring
subsidiaries and other operational units
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Other cash paid for investment
Subtotal of cash outflows 562,848,767.89 746,050,699.00
Cash flow generated by investment
289,793.28 -34,895,515.58
activities, net
3. Cash flow generated by financing
activities:
Cash received from investment
Cash received from borrowed
500,000,000.00 400,000,000.00
loans
Other cash received from financing
39,406.61
activities
Subtotal of cash inflow from financing
500,000,000.00 400,039,406.61
activities
Cash paid to repay debts 810,000,000.00
Cash paid as dividend, profit, or
71,233,278.75 241,065,709.32
interests
Other cash paid for financing
99,998,965.99
activities
Subtotal of cash outflow from financing
981,232,244.74 241,065,709.32
activities
Net cash flow generated by financing
-481,232,244.74 158,973,697.29
activities
4. Influence of exchange rate changes
-78,890.92 405.76
on cash and cash equivalents
5. Net increase in cash and cash
-121,646,297.59 -220,156,160.54
equivalents
Plus: Balance of cash and cash
175,341,953.63 281,594,621.80
equivalents at the beginning of term
6. Balance of cash and cash equivalents
53,695,656.04 61,438,461.26
at the end of the period
7. Statement of Change in Owners’ Equity (Consolidated)
Amount of the Current Term
In RMB
H1 2020
Item Owners' Equity Attributable to the Parent Company Minor Total
Share Other equity Capital Less: Other Specia Surplu Comm Undist Others Subtot shareh of
17
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
capita instruments reserve Shares miscell l s on risk ributed al olders’ owners
l s in aneous reserve reserve provisi profit equity ’
Prefe Perpe
Other stock incom s ons equity
rred tual
s e
share bond
1,123
1. Balance at 159,80 3,898, 5,182, 48,410 5,231,
,384, 1,454, -475,4
the end of last 5,930. 626,17 795,07 ,009.6 205,08
189.0 191.59 09.25
year 34 7.99 9.67 0 9.27
0
Plus:
Changes in
accounting
policies
Correction of
previous errors
Consolidation
of entities under
common control
Others
1,123
2. Balance at 159,80 3,898, 5,182, 48,410 5,231,
,384, 1,454, -475,4
the beginning of 5,930. 626,17 795,07 ,009.6 205,08
189.0 191.59 09.25
current year 34 7.99 9.67 0 9.27
0
3. Change
amount in the -35,1 -64,28 92,425
940,93 -6,019, -31,52 -6,050,
current period 05,23 0,649. ,937.0
3.00 017.26 6.57 543.83
(“-“ for 8.00 28 2
decrease)
146,83 147,78 147,74
(1) Total of 940,93 -31,52
9,884. 0,817. 9,291.
misc. incomes 3.00 6.57
57 57 00
(2) Investment
-35,1 -64,28 -99,38 -99,38
or decreasing of
05,23 0,649. 5,887. 5,887.
capital by
8.00 28 28 28
owners
1. Common -35,1 -64,28 -99,38 -99,38
shares invested 05,23 0,649. 5,887. 5,887.
by owners 8.00 28 28 28
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
2 Capital
contributed by
other equity
instrument
holders
3. Amount of
shares paid and
accounted as
owners' equity
4. Others
-54,41 -54,41 -54,41
(3) Profit
3,947. 3,947. 3,947.
allotment
55 55 55
1. Provision of
surplus reserves
2 Common risk
provision
3. Distribution -54,41 -54,41 -54,41
to owners (or 3,947. 3,947. 3,947.
shareholders) 55 55 55
4. Others
(4) Internal
carry-over of
owners' equity
1. Capitalizing
of capital
reserves (or
share capital)
2 Capitalizing
of surplus
reserves (or
share capital)
3. Surplus
reserves used to
cover losses
4. Retained gain
transferred due
to change in set
benefit program
5. Other
19
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
miscellaneous
income
6. Others
(5) Special
reserves
1. Provided this
year
2 Used this
period
(6) Others
1,088
4. Balance at 95,525 3,991, 5,176, 48,378 5,225,
,278, 1,454, 465,52
the end of this ,281.0 052,11 776,06 ,483.0 154,54
951.0 191.59 3.75
period 6 5.01 2.41 3 5.44
0
Amount of the Previous Term
In RMB
H1 2019
Owners' Equity Attributable to the Parent Company
Other equity Other Minor
Less: Specia Comm Total of
Item instruments miscell shareho
Share Capital Surplu Undist
Shares l on risk Subtot owners’
capita Prefe Perp reserve aneous s ributed Others lders’
Other in reserve provisi al equity
l rred etual s incom reserve profit equity
s stock s ons
share bond e
1,155
1. Balance at 10,831 120,47 3,921, 5,195, 5,195,1
,481, 1,454, 7,382,
the end of last ,437.6 5,221. 225,87 187,62 87,621.
686.0 191.59 087.59
year 6 40 2.96 1.88 88
0
Plus:
16,171 11,529
Changes in -5,166, 524,86 11,529,
,320.5 ,755.0
accounting 425.58 0.03 755.03
8 3
policies
Correction of
previous errors
Consolidation
of entities
under common
control
20
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Others
1,155
2. Balance at 10,831 121,00 3,937, 5,206, 5,206,7
,481, 1,454, 2,215,
the beginning ,437.6 0,081. 397,19 717,37 17,376.
686.0 191.59 662.01
of current year 6 43 3.54 6.91 91
0
3. Change
amount in the -32,0 -10,83 -66,95 -96,09 -182,9 -132,58
1,389, 50,345,
current period 97,49 1,437. 7,886. 5,082. 29,254 3,720.6
774.33 533.53
(“-“ for 7.00 66 36 78 .15 2
decrease)
128,58 129,97
(1) Total of 1,389, -17,556 129,953
1,755. 1,529.
misc. incomes 774.33 .37 ,972.97
01 34
(2) Investment
-32,0 -10,83 -66,95 -88,22
or decreasing 50,363, -37,860
97,49 1,437. 7,886. 3,945.
of capital by 089.90 ,855.80
7.00 66 36 70
owners
1. Common -32,0 -10,83 -66,95 -88,22
50,363, -37,860
shares invested 97,49 1,437. 7,886. 3,945.
089.90 ,855.80
by owners 7.00 66 36 70
2. Capital
contributed by
other equity
instrument
holders
3. Amount of
shares paid and
accounted as
owners' equity
4. Others
-224,6 -224,6 -224,67
(3) Profit
76,837 76,837 6,837.7
allotment
.79 .79 9
1. Provision of
surplus reserves
2. Common
risk provision
3. Distribution -224,6 -224,6 -224,67
to owners (or 76,837 76,837 6,837.7
21
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
shareholders) .79 .79 9
4. Others
(4) Internal
carry-over of
owners' equity
1. Capitalizing
of capital
reserves (or
share capital)
2. Capitalizing
of surplus
reserves (or
share capital)
3. Surplus
reserves used to
cover losses
4. Retained
gain transferred
due to change
in set benefit
program
5. Other
miscellaneous
income
6. Others
(5) Special
reserves
1. Provided this
year
2. Used this
period
(6) Others
1,123
4. Balance at 54,042 3,841, 5,023, 5,074,1
,384, 1,454, 3,605, 50,345,
the end of this ,195.0 302,11 788,12 33,656.
189.0 191.59 436.34 533.53
period 7 0.76 2.76 29
0
8. Statement of Change in Owners’ Equity (Parent Company)
Amount of the Current Term
22
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
In RMB
H1 2020
Other equity
Other
instruments Less: Undistr Total of
Item Share Capital miscella Special Surplus
Preferr Perpet Shares in ibuted Others owners’
capital reserves neous reserves reserve
ed ual Others stock profit equity
income
share bond
1,123,3 1,236,0
1. Balance at the 360,835. 1,287,62 159,805, 2,520,841,
84,189. 02,518.
end of last year 52 9.38 930.34 103.03
00 79
Plus:
Changes in
0.00
accounting
policies
Correction of 0.00
previous errors
Others 0.00
2. Balance at the 1,123,3 1,236,0
360,835. 1,287,62 159,805, 2,520,841,
beginning of 84,189. 0.00 02,518.
52 9.38 930.34 103.03
current year 00 79
3. Change
amount in the
-35,105 -64,280, -64,596 -163,982,7
current period
,238.00 649.28 ,904.01 91.29
(“-“ for
decrease)
(1) Total of misc. -10,182 -10,182,95
incomes ,956.46 6.46
(2) Investment or
decreasing of -35,105 -64,280, -99,385,88
capital by ,238.00 649.28 7.28
owners
1. Common
-35,105 -64,280, -99,385,88
shares invested
,238.00 649.28 7.28
by owners
2. Capital
contributed by
other equity 0.00
instrument
holders
23
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
3. Amount of
shares paid and
0.00
accounted as
owners' equity
4. Others 0.00
(3) Profit -54,413 -54,413,94
allotment ,947.55 7.55
1. Provision of
0.00
surplus reserves
2. Distribution to
-54,413 -54,413,94
owners (or
,947.55 7.55
shareholders)
3. Others 0.00
(4) Internal
carry-over of 0.00
owners' equity
1. Capitalizing
of capital
0.00
reserves (or
share capital)
2. Capitalizing
of surplus
0.00
reserves (or
share capital)
3. Surplus
reserves used to 0.00
cover losses
4. Retained gain
transferred due
0.00
to change in set
benefit program
5. Other
miscellaneous 0.00
income
6. Others 0.00
(5) Special
0.00
reserves
1. Provided this
0.00
year
24
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
2. Used this
0.00
period
(6) Others 0.00
4. Balance at the 1,088,2 1,171,4
360,835. 1,287,62 95,525,2 2,356,858,
end of this 78,951. 05,614.
52 9.38 81.06 311.74
period 00 78
Amount of the Previous Term
In RMB
H1 2019
Other equity
Other
instruments Less: Undistrib Total of
Item Share Capital miscella Special Surplus
Preferr Perpet Shares uted Others owners’
capital reserves neous reserves reserve
ed ual Others in stock profit equity
income
share bond
1. Balance at 1,155,
360,835 10,831,4 8,756,5 120,475 504,081,9 1,778,324,8
the end of last 481,68
.52 37.66 53.46 ,221.40 99.00 57.72
year 6.00
Plus:
Changes in -5,166,4 524,860 4,723,740
82,174.65
accounting 25.58 .03 .20
policies
Correction of
previous errors
Others
2. Balance at 1,155,
360,835 10,831,4 3,590,1 121,000 508,805,7 1,778,407,0
the beginning 481,68
.52 37.66 27.88 ,081.43 39.20 32.37
of current year 6.00
3. Change
amount in the -32,09
-10,831, -66,957, -238,486, -326,710,12
current period 7,497.
437.66 886.36 176.03 1.73
(“-“ for 00
decrease)
(1) Total of -13,809,3 -13,809,338
misc. incomes 38.23 .23
(2) Investment -32,09
-10,831, -66,957, -88,223,945
or decreasing of 7,497.
437.66 886.36 .70
capital by 00
25
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
owners
1. Common -32,09
-10,831, -66,957, -88,223,945
shares invested 7,497.
437.66 886.36 .70
by owners 00
2. Capital
contributed by
other equity
instrument
holders
3. Amount of
shares paid and
accounted as
owners' equity
4. Others
(3) Profit -224,676, -224,676,83
allotment 837.80 7.80
1. Provision of
surplus reserves
2. Distribution
-224,676, -224,676,83
to owners (or
837.80 7.80
shareholders)
3. Others
(4) Internal
carry-over of
owners' equity
1. Capitalizing
of capital
reserves (or
share capital)
2. Capitalizing
of surplus
reserves (or
share capital)
3. Surplus
reserves used to
cover losses
4. Retained gain
transferred due
to change in set
benefit program
26
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
5. Other
miscellaneous
income
6. Others
(5) Special
reserves
1. Provided this
year
2. Used this
period
(6) Others
4. Balance at 1,123,
360,835 3,590,1 54,042, 270,319,5 1,451,696,9
the end of this 384,18
.52 27.88 195.07 63.17 10.64
period 9.00
III. General Information
1. LITITONG's Profile
China Fangda Group Co., Ltd. (hereinafter referred to as "the Company") was approved in October 1995 by the General Office
of the Shenzhen Municipal People's Government with the letter of Shenfu Office (1995) No. 194, in the original "Shenzhen Fangda
Building Materials Co., Ltd." on the basis of the establishment of the fundraising method. The unified social credit code is:
91440300192448589C; registered address: Fangda Technology Building, Keji South 12th Road, South District, High-tech
Industrial Park, Nanshan District, Shenzhen. Mr. Xiong Jianming is the legal representative.
The Company issued foreign currency shares (B shares) and local currency shares (A shares) and listed in November 1995 and
April 1996 respectively in Shenzhen Stock Exchange. The Company received the Reply to the Non-public Share Issuance of Fangda
China Group Co., Ltd. (CSRC License [2016] No.825) to allow the Company to conduct non-public issuance of 32,184,931 A-shares
in June 20116. According to the 2016 Annual Profit Allocation Scheme, which was approved by the 2016 Annual Shareholders'
Congress, the Company has a total share capital of 789, 094, 836 shares as the basis and a capital reserve fund of 5 shares per 10
shares to all shareholders. The registered capital at the end of 2017 was RMB1,183,642,254.00. In August 2018, the Company
repurchased and cancelled 28,160,568 B-shares. In January 2019, the company repurchased and cancelled 32,097,497 B-shares. The
company repurchased and cancelled in May 2020, and cancelled 35,105,238 B shares, and the existing registered capital is
RMB1,088,278,951.00.
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, Fangda Chuangzhi, Fangda New
Material, Fangda Property and Fangda New Energy.
The business nature and main business operations of the Company and subsidiaries (“the Group”) include (1) production and
sales of curtain wall materials, design, pr oduction 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.
27
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
2. Consolidation Scope and Change
This part of the simplified disclosure is as follows: The company in the current period includes a total of 24 subsidiaries, of
which 1 have been added this year and 2 ha ve been reduced this year. For details, please refer to "Note 6. Change of the scope of
merger" and "Note 9. Rights and Interests in Other Subjects".
IV. Basis for the preparation of financial statements
1. Preparation basis
The company prepares the financ ial statements based on continuous operation and according to actual transactions and events,
with figures confirmed and measured in compliance with the Accounting Standards for Business Enterprises and other specific
account standards, application guide and interpretations. The Company has also disclosed related financial information according to
the requirement of the Regulations of Information Disclosure No.15 – General Provisions for Financial Statements (Revised in 2014)
issued by the CSRC.
2. Continuous operation
The Company assessed the continuing operations capability of the Company for the 12 months from the end of the reporting
period. No matters were found that would affect the Company's ability to continue as a going concern. It is reasonable for the
Company to prepare financial statements based on continuing operations.
V. Significant Account Policies and Estimates
Specific accounting policy and estimate prompt:
The following major accounting policies and accounting estimates shall be formulated in accordance with the accounting standards
of the enterprise. Unmentioned operations are carried out in accordance with the relevant accounting policies in the enterprise
accounting standards.
1. Statement of compliance to the Enterprise Accounting Standard
These financial statements meet the requirements of the Accounting Standards for Business Enterprises and truly and fully
reflect the Company’s financial status, performance result, changes in shareholders’ equity and cash flows.
2. Fiscal Period
The company's fiscal year starts on January 1 and ends on December 31 of the Gregorian calendar.
3. Operation period
Our normal business cycle is one year
4. Bookkeeping standard money
The company's bookkeeping standard currency is Renminbi, and overseas subsidiaries are based on the currency of the main
28
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
economic environment in which they operate.
5. Accounting treatment of the entities under common and different control
(1) Consolidation of entities under common control
The assets and liabilities acquired by the company in a business combination are measured at the book value of the combined
party in the consolidated financial statements of the ultimate controlling party on the date of combination. Among them, if the
accounting policy adopted by the merger party is different from that adopted by the company before the merger, the accounting
policy is unified based on the principle of importance, that is, the book value of the assets and liabilities of the merger party is
adjusted according to the accounting policy of the company. If there is a difference between the book value of the net assets acquired
by the company in the business combination and the book value of the consideration paid, first adjust the balance of the capital
reserve (capital premium or equity premium), the balance of the capital reserve (capital premium or equity premium) If it is
insufficient to offset, the surplus reserve and undistributed profits will be offset in sequence.
The accounting treatment method of enterprise merger under the same control through step-by-step transaction is described in
Section 5 and 6 (5).
(2) Consolidation of entities under different control
All identifiable assets and liabilities acquired by the Company during the merger shall be measured at its fair value on the date
of purchase. Among them, if the accounting policy adopted by the merger party is different from that adopted by the company before
the merger, the accounting policy is unified based on the principle of importance, that is, the book value of the assets and liabilities of
the merger party is adjusted according to the accounting policy of the company. The merger cost of the company on the date of
purchase is greater than the fair value of the assets and liabilities recognized by the purchaser in the merger, and is recognized as
goodwill. If the merger cost is less than the difference between the identifiable assets and the fair value of the liabilitie s obtained by
the purchaser in the enterprise merger, the merger cost and the fair value of the identifiab le assets and the liabilities obtained by the
purchaser in the enterprise merger are reviewed, and the merger cost is still less than the fair value of the identifiable as sets and
liabilities obtained by the purchaser after the review, the difference is considered as the profit and loss of the current period of the
merger.
See V, 6 (5) for the accounting treatment method of business combination under the same control through step-by-step
transaction.
(3) Treatment of related transaction fee in enterprise me rger
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 certificate s or
liability certificates issued by the purchaser for payment for the acquisition are accounted at the initial amount of the certificates.
6. Preparation of Consolidated Financial Statements
(1) Determination of consolidation scope
The consolidated scope of the consolidated financial statements is determined on a control basis and includes not only
subsidiaries determined on the basis of voting rights (or similar voting rights) themselves or in conjunction with other arra ngements,
but also structured subjects determined on the basis of one or more contractual arrangements.
Control means the power possessed by the Company on invested entities to share variable returns by participating in related
activities of the invested entities and to impact the amount of the returns by using the power. The subsidiary company is the subject
29
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
controlled by the company (including the enterprise, the divisible part of the invested unit and the structured subject controlled by the
enterprise, etc.). The structured subject is the subject which is not designed to determine the controlling party by taking the voting
right or similar right as the decisive factor.
(2) Preparation of Consolidated Financial Statements
The company prepares consolidated financial statements based on the financial statements of itself and its subsidiaries and
based on other relevant information.
The company compiles consolidated financial statements, regards the whole enterprise group as an accounting entity, reflects
the overall financial status, operating results and cash flow of the enterprise group according to the confirmation, measurement and
presentation requirements of the relevant enterprise accounting standards, and the unified accounting policy and accounting period.
① Merge the assets, liabilities, owner's rights and interests, income, expenses and cash flow of parent company and
subsidiary company.
② Offset the long-term equity investment of the parent company to the subsidiary company and the share of the parent
company in the ownership rights of the subsidiary company.
③ Offset the influence of internal transaction between parent company, subsidiary company and subsidiary company. If an
internal transaction indicates that the relevant asset has suffered an impairment loss, the part of the loss shall be confirmed in full.
④ adjust the special transaction from the angle of enterprise group.
(3) Processing of subsidiaries during the reporting period
① Increase of subsidiaries or business
A. Subsidiary or business increased by business combination under the same control
(a) When preparing the consolidated balance sheet, adjust the opening number of the consolidated balance sheet and adjust the
related items of the comparative statement. The same report entity as the consolidated balance sheet will e xist from the time of the
final control party.
(b) When preparing the consolidated cash flow statement, the cash flows of the subsidiary and the business combination from
the beginning of the current period to the end of the reporting period are included in the consolidated cash flow statement, and the
related items of the comparative statement are adjusted, which is regarded as the combined report body since the final The controller
has been there since the beginning of control.
(c) When preparing the consolidated cash flow statement, the cash flows of the subsidiary and the business combination from the
beginning of the current period to the end of the reporting period are included in the consolidated cash flow statement, and the related
items of the comparative statement are adjusted, which is regarded as the combined report body since the final The controller has
been there since the beginning of control.
B. Subsidiaries or businesses added by business combinations not under the same control
(a) When preparing the consolidated balance sheet, the opening number of the consolidated balance sheet is not adjusted.
(b) When preparing the consolidated profit statement, the income, expense and profit of the subsidiary company and the busine ss
Purchase date and Closing balance shall be included in the consolidated profit statement.
(c) When the consolidated cash flow statement is prepared, the cash flow from the purchase date of the subsidiary to the end of
the reporting period is included in the consolidated cash flow statement.
② Disposal of subsidiaries or business
30
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
(A) When preparing the consolidated balance sheet, the opening number of the consolidated balance sheet is not adjusted.
B. When preparing the consolidated profit statement, the income, expense and profit of the subsidiary company and the business
opening and disposal date shall be included in the consolidated profit statement.
C. When the consolidated cash flow statement is prepared, the cash flow from the Beginning of the period of the subsidiary to
the end of the reporting period is included in the consolidated cash flow statement.
(4) Special considerations in consolidation offsets
① The long-term equity investment held by a subsidiary company shall be regarded as the inventory shares of the company as a
subtraction of the owner's rights and interests, which shall be listed under the item of "subtraction: Stock shares" under the item of
owner's rights and interests in the consolidated balance sheet.
The long-term equity investments held by the subsidiaries are offset by the shares of the shareholders of the subsidiaries.
② The "special reserve" and "general risk preparation" projects, because they are neither real capital (or share capital) nor
capital reserve, but also different from the retained income and undistributed profits, are restored according to the ownership of the
parent company after the long-term equity investment is offset by the ownership rights and interests of the subsidiary company.
③ If there is a temporary difference between the book value of assets and liabilities in the consolidated balance sheet and the
taxable basis of the taxpayer due to the offset of the unrealized internal sales gain or loss, the deferred income tax asset or the
deferred income tax liability is confirmed in the consolidated balance sheet, and the income tax expense in the consolidated profit
statement is adjusted, with the exception of the deferred income tax related to the transaction or event directly included in the owner's
equity and the merger of the enterprise.
④ The unrealized internal transaction gains and losses incurred by the company from selling assets to subsidiaries shall be fully
offset against the "net profit attributable to the owners of the parent company". The unrealized internal transact ion gains and losses
arising from the sale of assets by the subsidiary to the company shall be offset between the “net profit attributable to the owners of
the parent company” and the “minority shareholder gains and losses” in accordance with the company’s distribution ratio to the
subsidiary. The unrealized internal transaction gains and losses arising from the sale of assets between subsidiaries shall be offset
between the "net profit attributable to the owners of the parent company" and the "minority shareholders' gains and losses" in
accordance with the company's distribution ratio to the seller's subsidiary .
⑤ If the current loss shared by the minority shareholders of the subsidiary exceeds the share of the minority shareholders in t he
owner ’s equity of the subsidiary at the beginning of the period, the balance should still be offset against the minority
shareholders ’equity.
(5) Accounting treatment of special transactions
① Purchase minority shareholders' equity
The Company purchases the shares of the subsidiaries owned by the minority shareholders of the subsidiaries. In the individual
financial statements, the investment costs of the newly acquired long-term investments of the minority shares shall be measured at
the fair value of the price paid. In the consolidated financial statements, the difference between the newly acquired long-term equity
investment due to the purchase of minority equity and the share of net assets that should be continuously calculated by the s ubsidiary
since the purchase date or the merger date should be adjusted according to the new shareholding ratio. The product (capital premium
or equity premium), if the capital reserve is insufficient to offset, the surplus reserve and undistributed profits are offse t in turn.
② Step-by-step acquisition of control of the subsidiary through multiple transactions
A. Enterprise merger under common control through multiple transactions
31
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
On the date of the merger, the company determines the initial investment cost of the long-term equity investment in the
individual financial statements based on the share of the subsidiary ’s net assets that should be enjoyed after the merger in the final
controller ’s consolidated financial statements; the initial investment cost and the The difference between the book value of the
long-term equity investment before the merger plus the book value of the consideration paid for new shares acquired on the merger
date, the capital reserve (capital premium or equity premium) is adjusted, and the capital reserve (capital premium or equity premium)
is insufficient to offset Reduced, in turn offset the surplus reserve and undistributed profits.
In consolidated financial statements, assets and liabilities obtained by the merging party from the merged party should be
measured at the book value in the final controlling party’s consolidated financial statements other than the adjustment made due to
differences in accounting policies; adjust the capital surplus (share premium) according to the difference between the initia l
investment cost and the book value of the held investment before merger plus the book value of the consideration paid on the me rger
date. Where the capital surplus falls short, the retained income should be adjusted.
If the merging party holds the equity investment before acquiring the control of the merged party and is accounted for according
to the equity method, the date of acquiring the original equity and the merging party and the merged party are in the same pa rty's final
control from the later date to the merger date The relevant gains and losses, other comprehensive income and other changes in
owner's equity have been confirmed between them, and the retained earnings at the beginning of the comparative statement period
should be offset separately.
B. Enterprise merger not under common control through multiple transactions
On the merger day, in individual financial statements, the initial investment cost of the long-term equity investment on the
merger day is based on the book value of the long-term equity investment previously held plus the sum of the additional investment
costs on the merger day.
In the consolidated financial statements, the equity of the purchaser held prior to the date of purchase is revalued according to
the fair value of the equity at the date of purchase, and the difference between the fair value and its book value is credited to the
current investment income; If the shares held by the purchaser prior to the date of purchase involve other consolidated gains under
the equity law accounting, the other consolidated gains related thereto shall be converted to the current gains on the date of purchase,
with the exception of the other consolidated gains arising from the remeasurement of the net assets or net liabilities of the merged
party. The company disclosed in the notes the fair value of the equity of the purchased party held before the purchase date and the
amount of related gains or losses remeasured according to the fair value.
(3) The Company disposes of long-term equity investment in subsidiaries without losing control
The parent company partially disposes of the long-term equity investment in the subsidiary company without losing control. In
the consolidated financial statements, the disposal price corresponds to the disposal of the long-term equity investment. The
difference between the shares is adjusted for the capital reserve (capital premium or equity premium). If the capital reserve is
insufficient to offset, the retained earnings are adjusted.
④ The company disposes of long-term equity investment in subsidiaries and loses control
A. One transaction disposition
If the Company loses control over the Invested Party due to the disposal of part of the equity investment, it shall remeasure the
remaining equity according to its fair value at the date of loss of control when compiling the consolidated financial statement. The
sum of the consideration obtained from the disposal of equity and the fair value of the remaining equity minus the difference between
the share of the original subsidiary 's net assets that should be continuously calculated from the purchase date or the merger date,
calculated as the loss of control The investment income of the current period.
Other comprehensive income and other owner's equity changes related to the equity investment of the atomic company are
32
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
transferred to the current profit and loss when the control is lost, except for other comprehensive income arising from the
remeasurement of the net benefits or net assets of the defined benefit plan by the investee. .
B. Multi-transaction step-by-step disposition
In consolidated financial statements, you should first determine whether a step-by-step transaction is a "blanket transaction".
If the step-by-step transaction does not belong to a "package deal", in the individual financial statements, for each transaction
before the loss of control of the subsidiary, the book value of the long-term equity investment corresponding to each disposal of
equity is carried forward, the price received and the disposal The difference between the book value of the long-term equity
investment is included in the current investment income; in the consolidated financial statements, it should be handled in ac cordance
with the relevant provisions of "the parent company disposes of the long-term equity investment in the subsidiary without losing
control."
If a step-by-step transaction belongs to a "blanket transaction", the transaction shall be treated as a transaction that disposes of
the subsidiary and loses control; In individual financial statements, the difference between each disposal price before the loss of
control and the book value of the long-term equity investment corresponding to the equity being disposed of is first recognized as
other consolidated gains and then converted to the current loss of control at the time of the loss of control; In the consolidated
financial statements, for each transaction prior to the loss of control, the difference between the disposition of the price and the
disposition of the investment corresponding to the share in the net assets of the subsidiary shall be recognized as other consolidated
gains and shall, at the time of the loss of control, be transferred to the loss of control for the current period.
Where the terms, conditions, and economic impact of each transaction meet one or more of the following conditions, usually
multiple transactions are treated as a "package deal":
(a) These transactions were concluded at the same time or in consideration of mutual influence.
(b) These transactions can only achieve the business result as a whole;
(c) The effectiveness of one transaction depends the occurance of at least another transaction;
(d) A single transaction is not economic and is economic when considered together with other transactions.
(5) Proportion of minority shareholders in factor companies who increase capital and dilute ownership of parent companies
Proportion of Others （ minority shareholders in factor companies who increase capital , dilute Subsidiaries of parent companies.
In the consolidated financial statements, the share of the parent company in the net book assets of the former subsidiary of the cap ital
increase is calculated according to the share ratio of the parent company before the capital increase, the difference between the share
and the net book assets of the latter subsidiary after the capital increase is calculated according to the share ratio of the parent
company, the capital reserve (capital premium or capital premium), the capital reserve (capital premium or capital premium) is not
offset, and the retained income is adjusted.
7. Recognition of cash and cash equivalents
Cash refers to cash in stock and deposits that can be used for payment at any time. Cash equivalents refer to investments wit h a
short holding period (generally referring to expiry within three months from the date of purchase), strong liquidity, easy to convert to
a known amount of cash, and little risk of value change.
8.Foreign exchange business and foreign exchange statement translation
(1) Methods for determining conversion rates in foreign currency transactions
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
When the company's foreign currency transactions are initially confirmed, they will be converted into the bookkeeping
standard currency at the spot exchange rate on the transaction date.
(2) Methods of conversion of foreign currency currency currency items on balance sheet days
At the balance sheet date, foreign currency items are translated on the spot exchange rate of the balance sheet date. The
exchange differences caused by the difference in exchange rates on the balance sheet date and initial recognizing date or previous
balance sheet date are included in the current profits and losses. Non-monetary items accounted in foreign currency and on historical
costs are exchanged with the spot exchange rate on the transaction date. Non-monetary items accounted in foreign currency and on
fair value are exchanged with the spot exchange rate on the determination date of the fair value. The exchange difference between the
accounting standard-currency amount and the original accounting standard-currency amount are included in the current profits and
losses.
(3) Foreign currency statement conversion method
Prior to the conversion of the financial statements of an enterprise's overseas operations, the a ccounting period and policy of
the overseas operations should be adjusted to conform to the accounting period and policy of the enterprise. The financial statements
of the corresponding currency (other than the functional currency) should be prepared according to the adjusted accounting policy
and the accounting period. The financial statements of the overseas operations should be converted according to the following
methods:
① The assets and liabilities items in the balance sheet are translated at the spot exchange rate on the balance sheet date. Except
for the "undistributed profits" items, the owner's equity items are translated at the spot exchange rate when they occur.
② The income and expense items in the profit statement are converted at the spot exchange rate on the transaction date or the
approximate exchange rate of the spot exchange rate.
③ The foreign currency cash flow and the foreign subsidiary's cash flow are converted using the immediate exchange rate or
the approximate exchange rate at the date of the cash flow. The impact of exchange rate changes on cash should be used as an
adjustment item and presented separately in the cash flow statement.
④ During the preparation of the consolidated financial statements, the resulting foreign currency financial statement
conversion variance is presented separately under the owner's equity item in the consolidated balance sheet.
When foreign operations are disposed of and the control rights are lost, the difference in foreign currency statements related to
the overseas operations that are listed in the shareholders' equity items in the balance sheet is transferred to the profit or loss for the
current period, either in whole or in proportion to the disposal of the foreign operations.
9. Financial instrument
Financial instrument refers to a company’s financial assets and contracts that form other units of financial liabilities or e quity
instruments.
(1) Recognition and de -recognition of financial instrument
The Company recognizes a financial asset or liability when it becomes one party in the financial instrument contract.
Financial asset is derecognized when:
① The contractual right to receive the cash flows of the financial assets is terminated;
② The financial asset is transferred and meets the following derecognition condition.
If the current obligation of a financial liability (or part of it) has been discharged, the company derecognises the financia l
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
liability (or part of the financial liability). When the Company (borrower) and lender enter into an agreement to replace the original
financial liabilities by undertaking new financial liabilities and the contract terms for the new financial liabilities are e ssentially
different from those for the original one, the original financial liabilities will be derecognized and new financial liabilities will be
recognized. Where the Company makes substantial amendments to the contract terms of the original financial liability (or part
thereof), it shall terminate the original financial liability and confirm a new financial liability in accordance with the ame nded terms.
Financial asset transactions in regular ways are recognized and de-recognized on the transaction date. The conventional sale of
financial assets means the delivery of financial assets in accordance with the contractual terms and conditions, at the time set out in
the regulations or market practices. Transaction date refers to the date when the company promises to buy or se ll financial assets.
(2) Classification and subsequent measurement of financial assets
At initial recognition, the Company classifies financial assets into the following three categories based on the business model
of managing financial assets and the contractual cash flow characteristics of financial assets: financial assets measured at amortized
cost are measured at fair value and their changes are included in other financial assets with current profit and loss and financial assets
measured at fair value through profit or loss. Unless the Company changes the business model for managing financial assets, in this
case, all affected financial assets are reclassified on the first day of the first reporting period after the business model changes,
otherwise the financial assets may not be initially confirmed.
Financial assets are measured at the fair value at the initial recognition. For financial assets measured at fair value with
variations accounted into current income account, related transaction expenses are accounted into the current income. For other
financial assets, the related transaction expenses are accounted into the initial recognized amounts. Bills receivable and ac counts
receivable arising from the sale of commodities or the provision of labor services that do not contain or do not consider significant
financing components, the company performs initial measurement according to the transaction price defined by the income standard.
The subsequent measurement of financial assets depends on their c lassification:
① Financial assets measured at amortized cost
Financial assets that meet the following conditions at the same time are classified as financial assets measured at amortized cost:
The company ’s business model for managing this financial asset is to collect contractual cash flows as its goal; the contract terms of
the financial asset stipulate that Cash flow is only the payment of principal and interest based on the outstanding principal amount.
For such financial assets, the actual interest rate method is used for subsequent measurement according to the amortized cost. The
gains or losses arising from the termination of recognition, amortization or impairment based on the actual interest rate method are
included in the current profit and loss.
② Financial assets measured at fair value and whose changes are included in other comprehensive income
Financial assets that meet the following conditions at the same time are classified as financial assets measured at fair value and
their changes are included in other comprehensive income: The company's business model for managing this financial asset is to both
target the collection of contractual cash flows and the sale of financial assets. Objective; The contractual terms of the financial asset
stipulate that the cash flow generated on a specific date is only for the payment of principal and interest based on the outstanding
principal amount. For such financial assets, fair value is used for subsequent measurement. Except for impairment losses or gains and
exchange gains and losses recognized as current gains and losses, changes in the fair value of such financial assets are recognized as
other comprehensive income. Until the financial asset is derecognized, its accumulated gains or losses are transferred to current gains
and losses. However, the relevant interest income of the financial asset calculated by the actual interest rate method is inc luded in the
current profit and loss.
The Company irrevocably chooses to designate a portion of non-tradable equity instrument investment as a financial asset
measured at fair value and whose variation is included in other consolidated income. Only the relevant dividend income is inc luded
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
in the current profit and loss, and the variation of fair value is recognized as other consolidated income.
③ Financial assets measured at fair value with variations accounted into current income account
The above financial assets measured at amortized cost and other financial assets measured at fair value and whose changes are
included in other comprehensive income are classified as financial assets measured at fair value and whose changes are included in
the current profit and loss. For such financial assets, fair value is used for subsequent measurement, and all changes in fair value are
included in current profit and loss.
(3) Classification and measurement of financial liabilities
The company classifies financial liabilities into financial liabilities measured at fair value and their changes included in the
current profit and loss, loan commitments and financial guarantee contract liabilities for loans below market interest rates, and
financial liabilities measured at amortized cost.
The subsequent measurement of financial liabilities depends on their classification:
① Financial liabilities measured at fair value with variations accounted into current income account
Such financial liabilities include transactional financial liabilities (including derivatives that are financial liabilities) and
financial liabilities designated as at fair value through profit or loss. After the initial recognition, the financial liabilities are
subsequently measured at fair value. Except for the hedge accounting, the gains or losses (including interest expenses) are recognized
in profit or loss. However, for the financial liabilities designated as fair value and whose variations are included in the profits and
losses of the current period, the variable amount of the fair value of the financial liability due to the variation of credit risk of the
financial liability shall be included in the other consolidated income. When the financial liability is terminated, the cumulative gains
and losses previously included in the other consolidated income shall be transferred out of the other consolidated income and shall be
included in the retained income.
② Loan commitments and financial security contractual liabilities
A loan commitment is a promise that the company provides to customers to issue loans to customers with established contract
terms within the commitment period. Loan commitments are provided for impairment losses based on the expected credit loss model.
A financial guarantee contract refers to a contract that requires the company to pay a specific amount of compensation to the
contract holder who suffered a loss when a specific debtor is unable to repay the debt in accordance with the original or modified
debt instrument terms. Financial guarantee contract liabilities are subsequently measured based on the higher of the loss res erve
amount determined in accordance with the principle of impairment of financial instruments and the initial recognition amount after
deducting the accumulated amortization amount determined in accordance with the revenue recognition principle.
③ Financial liabilities measured at amortized cost
After initial recognition, other financial liabilities are measured at amortized cost using the effective interest method.
Except in special circumstances, financial liabilities and equity instruments are distinguished according to the following
principles:
① If the company cannot unconditionally avoid delivering cash or other financial assets to fulfill a contractual obligation, the
contractual obligation meets the definition of financial liability. While some financial instruments do not explicitly contain terms and
conditions for the delivery of cash or other financial assets, they may indirectly form contractual obligations through other terms and
conditions.
If a financial instrument is required to be settled with or can be settled with the Company's own equity instruments, the
Company's own equity instrument used to settle the instrument needs to be considered as a substitute for cash or other financ ial assets
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
or for the holder of the instrument to enjoy the remaining equity in the assets after all liabilities are deducted. If it is the former, the
instrument is the financial liabilities of the issuer; if it is the latter, the instrument is the equity instrument of the is suer. In some cases,
a financial instrument contract provides that the Company shall or may use its own instrument of interest, in which the amount of a
contractual right or obligation is equal to the amount of the instrument of its own interest which may be acquired or delivered
multiplied by its fair value at the time of settlement, whether the amount of the contractual right or obligation is fixed or is based
entirely or in part on a variation of a variable other than the market price of the instrument of its own interest, such as the rate of
interest, the price of a commodity or the price of a financial instrument, the contract is classified as a financial liability.
(4) Derivative financial instruments and embedded derivatives
Derivative financial instruments are initially measured at the fair value of the day when the derivative transaction contract is
signed, and are subsequently measured at their fair values. Derivative financial instruments with a positive fair value are r ecognized
as asset, and instruments with a negative fair value are recognized as liabilities.
The gains and losses arising from the change in fair value of derivatives are directly included in the profits and losses of the
current period, except that the part of the cash flow that is valid in the hedge is included in the other consolida ted income and
transferred out when the hedged item affects the gain and loss of the current period.
For a hybrid instrument containing an embedded derivative instrument, if the principal contract is a financial asset, the hybrid
instrument as a whole applies the relevant provisions of the financial asset classification. If the main contract is not a financial asset,
and the hybrid instrument is not measured at fair value and its changes are included in the current profit and loss for accounting, the
embedded derivative does not have a close relationship with the main contract in terms of economic characteristics and risks, and it is
If the instruments with the same conditions and exist separately meet the definition of derivative instruments, the embedded
derivative instruments are separated from the mixed instruments and treated as separate derivative financial instruments. If the fair
value of the embedded derivative on the acquisition date or the subsequent balance sheet date cannot be measured separately, the
hybrid instrument as a whole is designated as a financial asset or financial liability measured at fair value and whose changes are
included in the current profit or loss.
(5) Financial instrument Less
The Company shall confirm the preparation for loss on the basis of expected credit loss for financial assets measured at
amortization costs, creditor's rights investments measured at fair value, contractual assets, leasing receivables, loan commitments and
financial guarantee contracts, etc.
① Measurement of expected credit losses of accounts receivable
The expected credit loss refers to the weighted average of the credit losses of financial instruments that are weighted by the risk
of default. Credit loss refers to the difference between all contractual cash flows receivable from the contract and all cash flows
expected to be received by the Company at the original actual interest rate, that is, the present value of all cash shortages . Among
them, the financial assets which have been purchased or born by the Company shall be discounted according to the actual rate of
credit adjustment of the financial assets.
The expected lifetime credit loss is the expected credit loss due to all possible default events during the entire expected life of
the financial instrument.
Expected credit losses in the next 12 months are expected to result from possible defaults in financial instruments within 12
months after the balance sheet date (or estimated duration of financial instruments if the expected duration is less tha n 12 months)
Credit losses are part of the expected lifetime credit loss.
On each balance sheet day, the company measures the expected credit losses of financial instruments at different stages. Where
the credit risk has not increased significantly since the initial confirmation of the financial instrument, it is in the first stage. The
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Company measures the preparation for loss according to the expected credit loss in the next 12 months. Where the credit risk has
increased significantly since the initial confirmation but the credit impairment has not occurred, the financial instrument is in the
second stage. Where a credit impairment has occurred since the initial confirmation of the financial instrument, it shall be in the third
stage, and the Company shall prepare for measuring the expected credit loss of the whole survival period of the instrument.
For financial instruments with low credit risk on the balance sheet date, the company assumes that the credit risk has not
increased significantly since the initial recognition, and measures the loss provision based on the expected credit losses in the next 12
months.
For financial instruments that are in the first and second stages and with lower credit risk, the company calculates interest
income based on their book balances and actual interest rates without deduction for impairment provision. For financial instruments
in the third stage, interest income is calculated based on the amortized cost and the actual interest rate after the book balance minus
the provision for impairment.
Regarding bills receivable, accounts receivable and financing receivables, regardless of whether there is a significant financing
component, the company measures the loss provision based on the expected credit losses throughout the duration.
A Accounts receivable
Where there is objective evidence of impairment, as well as other receivable instruments, receivables, other receivables,
receivables financing and long-term receivables applicable to individual assessments, separate impairment tests are performed to
confirm expected credit losses and prepare individual impairment. For notes receivable, accounts receivable, other receivable s,
financing of receivables and long-term receivables for which there is no objective evidence of impairment, or when individual
financial assets cannot be assessed at a reasonable cost, the company divides bills receivable, accounts receivable, other re ceivables,
receivable financing and long-term receivables into several combinations based on credit risk characteristics, and calculates expected
credit losses on the basis of the combination. The basis for determining the combination is as follows:
The basis for determining the combination of notes receivable is as follows:
Notes Receivable Combination 1 Commercial Acceptance Bill
Notes Receivable Combination 2 Bank Acceptance Bill
For Notes receivable divided into portfolios, the company refers to historical credit loss experience, combined with current
conditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit loss rate
within the next 12 months or the entire duration Expected credit losses.
The basis for determining the combination of accounts receivable is as follows:
Accounts receivable combination 1 Accounts receivable business
Other receivable portfolio 2 Receivables from related parties within the scope of consolidation
Accounts receivable combination 3 Real estate receivable business
Accounts receivable combination 4 Others receivable business
For the accounts receivable divided into a combination, the company refers to the historical credit loss experience, combined
with the current situation and the forecast of the future economic situation, compiles the account receivable age and the whole
expected credit loss rate table, and calculates the expected credit loss.
The basis for determining the combination of other receivables is as follows:
Other receivable portfolio 1 Interest receivable
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Portfolio of other receivables 2 Dividends receivable
Other combinations of receivables 3 Deposit and margin receivable
Other receivable portfolio 4 Receivable advances
Combination of other receivables 5 Value-added tax receivable is increased and refunded
Other receivable portfolio 6 Receivables from re lated parties within the scope of consolidation
Other receivables portfolio 7 Other receivables
For other receivables divided into portfolios, the company refers to historical credit loss experience, combined with current
conditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit loss rate
within the next 12 months or the entire duration Expected credit losses.
The basis for determining the combination of receivables financing is as follows:
Receivables financing portfolio 1 bank acceptance bill
For Notes receivable divided into portfolios, the company refers to historical credit loss experience, combined with current
conditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit loss rate
within the next 12 months or the entire duration Expected credit losses.
Other debt investment
For other receivables divided into portfolios, the company refers to historical credit loss experience, co mbined with current
conditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit loss rate
within the next 12 months or the entire duration Expected credit losses.
② Lower credit risk
If the risk of default on financial instruments is low, the borrower’s ability to meet its contractual cash flow obligations in the
short term is strong, and even if the economic situation and operating environment are adversely changed over a long period of time,
it may not necessarily reduce the receivables' performance of their contractual cash. The ability of the flow obligation, the financial
instrument is considered to have a lower credit risk.
③ Significant increase in credit risk
The company compares the default probability of the financial instrument during the expected lifetime determined by the
balance sheet date with the default probability of the expected lifetime during the initial confirmation to determine the relative
probability of the default probability of the financial instrument during the expected lifetime Changes to assess whether the credit
risk of financial instruments has increased significantly since initial recognition.
In determining whether the credit risk has increased significantly since the initial recognition, the Company considers
reasonable and evidenced information, including forward-looking information, that can be obtained without unnecessary additional
costs or effort. The information considered by the company includes:
A. Significant changes in internal price indicators resulting from changes in credit risk;
B. Adverse changes in business, financial or economic conditions that are expected to cause significant changes in the debtor ’s
ability to perform its debt service obligations;
C. Whether the actual or expected operating results of the debtor have changed significantly; whether the regulatory, economic
or technical environment of the debtor has undergone significant adverse changes;
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
D. Whether there is a significant change in the value of the collateral used as debt collateral or the guarantee provided by a
third party or the quality of credit enhancement. These changes are expected to reduce the debtor’s economic motivation for
repayment within the time limit specified in the contract or affect the probability of default;
E. Whether there is a significant change in the economic motivation that is expected to reduce the debtor's repayment according
to the contractual deadline;
F. Anticipated changes to the loan contract, including whether the expected violation of the contract may result in the
exemption or revision of contract obligations, granting interest-free periods, rising interest rates, requiring additional collateral or
guarantees, or making other changes to the contractual framework of financial instruments change;
G. Whether the expected performance and repayment behavior of the debtor has changed significantly;
H. Whether the contract payment is overdue for more than (including) 30 days.
Based on the nature of financial instruments, the Company assesses whether credit risk has increased significantly on the basis
of a single financial instrument or combination of financial instruments. When conducting an assessment based on a combinatio n of
financial instruments, the Company can classify financial instruments based on common credit risk characteristics, such as overdue
information and credit risk ratings.
If the overdue period exceeds 30 days, the company has determined that the credit risk of financial instruments has increased
significantly. Unless the Company does not have to pay excessive costs or efforts to obtain reasonable and warranted informat ion, it
proves that although it has exceeded the time limit of 30 days agreed upon in the Contract, credit risks have not increased
significantly since the initial confirmation.
④ Financial assets with credit impairment
The company assesses on the balance sheet date whether financial assets measured at amortized cost and credit investments
measured at fair value and whose changes are included in other comprehensive income have undergone credit impairment. When one
or more events that adversely affect the expected future cash flows of a financial asset occur, the financial asset becomes a financial
asset that has suffered a credit impairment. Evidence that credit impairment has occurred in financial assets includes the following
observable information:
Major financial difficulties have occurred to the issuer or the debtor; Breach of contract by the debtor, such as payment of
interest or default or overdue of principal; (B) The concession that the debtor would not make under any other circumstances for
economic or contractual considerations relating to the financial difficulties of the debtor; The debtor is likely to be bankrupt or
undertake other financial restructuring; The financial difficulties of the issuer or debtor lead to the disappearance of the active market
for the financial asset; To purchase or generate a financial asset at a substantial discount, which reflects the fact that a credit loss has
occurred.
⑤ Presentation of expected credit loss measurement
In order to reflect the changes in the credit risk of financial instruments since the initial recognition, the Company re -measures
the expected credit losses on each balance sheet date, and the increase or reversal of the loss provision resulting therefrom is included
as an impairment loss or gain. Current profit and loss. For financial assets measured at amortized cost, the loss allowance offsets the
book value of the financial asset listed on the balance sheet; for debt investments measured at fair value and whose changes are
included in other comprehensive income, the company Recognition of its loss provisions in gains does not offset the book value of
the financial asset.
⑥ Canceled
If it is no longer reasonably expected that the contract cash flow of the financial assets will be fully or partially recovered, the
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
book balance of the financial assets will be directly reduced. Such write-off constitute the derecognition of related financial assets.
This usually occurs when the company determines that the debtor has no assets or sources of income that generate sufficient c ash
flow to cover the amount that will be written down.
If the financial assets that have been written down are recovered in the future, the reversal of the impairment loss is included in
the profit or loss of the current period.
(6) Transfer of financial assets
The transfer of financial assets refers to the following two situations:
A. Transfer the contractual right to receive cash flow of financial assets to another party;
B. Transfers the financial assets to the other party in whole or in part, but reserves the contractual right to collect the c ash flow
of the financial assets and undertakes the contractual obligation to pay the collected cash flow to one or more recipients.
① De-identification of transferred financial assets
Those who have transferred almost all risks and rewards in the ownership of financial assets to the transferee, or ha ve neither
transferred nor retained almost all the risks and rewards in the ownership of financial assets, but have given up control of the
financial assets, terminate the confirmation The financial asset.
In determining whether control over the transferred financial asset has been waived, the actual capacity of the transferor to sell
the financial asset is determined. If the transferor is able to sell the transferred financial assets wholly to a third party that does not
have a relationship with them, and has no additional conditions to limit the sale, it indicates ds has waived control over the financial
assets.
The company pays attention to the essence of financial asset transfer when judging whether financial asset transfer meets the
condition of financial asset termination.
If the overall transfer of financial assets meets the conditions for termination of confirmation, the difference between the
following two amounts is included in the current profit and loss:
A. Continuing identification of transferred Book value；
B. The sum of the amount received as a result of the transfer and the amount accrued as a result of the change in the fair va lue
of the transfer in respect of the termination recognized portion of the amount previously charged directly to the other consolidated
proceeds (the financial assets involved in the transfer are those classified in accordance with Article 18 of Enterprise Accounting
Standard No. 22 - Financial Instruments Recognition and Measurement as measured by the fair value and whose change is charged to
the other consolidated proceeds).
If the partial transfer of financial assets meets the conditions for derecognition, the book value of the entire transferred financial
assets will be included in the derecognized part and the unterminated part (in this case, the retained service assets are regarded as part
of the continued recognition of financial assets) Between them, they are apportioned according to their respective relative fair values
on the transfer date, and the difference between the following two amounts is included in the current profit and loss:
A. Termination of the book value of the recognized portion on the date of derecognition;
B. The sum of the amount received as a result of the transfer and the amount accrued as a result of the change in the fair value
of the transfer in respect of the termination recognized portion of the amount previously charged to the other consolidated proceeds
(the financial assets involved in the transfer are those classified in accordance with Article 18 of Enterprise Accounting Standard No.
22 - Financial Instruments Recognition and Measurement as measured by the fair value and whose change is charged to the other
consolidated proceeds).
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
② Continue to be involved in the transferred financial assets
If neither transfer nor retain almost all the risks and rewards of the ownership of financial assets, and have not given up c ontrol
of the financial assets, the relevant financial assets should be confirmed according to the extent of their continued involvement in the
transferred financial assets, and the relevant liabilities should be recognized accordingly.
The extent to which the transferred financial assets continue to be involved refers to the extent to which the enterprise
undertakes the risk or compensation of the value change of the transferred financial assets.
(III) Continuing identification of transferred financial assets
Where almost all risks and remuneration in relation to ownership of the transferred financial assets are retained, the whole of
the transferred financial assets shall continue to be recognized and the consideration received shall be recognized as a fina ncial
liability.
The financial asset and the recognized related financial liabilities shall not offset each other. In the su bsequent accounting
period, the enterprise shall continue to recognize the income (or gain) generated by the financial asset and the costs (or losses)
incurred by the financial liability.
(7) Deduction of financial assets and liabilities
Financial assets and financial liabilities should be listed separately in the balance sheet, and cannot be offset against each other.
However, if the following conditions are met, the net amount offset by each other is listed in the balance sheet:
The company has a statutory right to offset the confirmed amount, and such legal right is currently enforceable;
The company plans to settle the net assets or realize the financial assets and liquidate the financial liabilities at the same time.
The transferring party shall not offset the transferred financial assets and related liabilities if it does not meet the conditions for
terminating the recognition.
(8) Recognition of fair value of Finance instruments
For the method for determining the fair value of financial assets and financial liabilities, see 30 (1) Fair value measurement in
this section, V. Important accounting policies and accounting estimates.
10. Notes receivable
For details, please refer to 11. Accounts Receivable in V. Important Accounting Policies and Accounting Estimates in this
section.
11. Account receivable
The Company shall confirm the preparation for loss on the basis of expected credit loss for financial assets measured at
amortization costs, creditor's rights investments measured at fair value, contractual assets, leasing receivables, loan commitments and
financial guarantee contracts, etc.
① Measurement of expected credit losses of accounts receivable
The expected credit loss refers to the weighted average of the credit losses of financial instruments that are weighted by the risk
of default. Credit loss refers to the difference between all contractual cash flows receivable from the contract and all cas h flows
expected to be received by the Company at the original actual interest rate, that is, the present value of all cash shortages . Among
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
them, the financial assets which have been purchased or born by the Company shall be discounted according to the ac tual rate of
credit adjustment of the financial assets.
The expected lifetime credit loss is the expected credit loss due to all possible default events during the entire expected life of
the financial instrument.
Expected credit losses in the next 12 months are expected to result from possible defaults in financial instruments within 12
months after the balance sheet date (or estimated duration of financial instruments if the expected duration is less than 12 months)
Credit losses are part of the expected lifetime credit loss.
On each balance sheet day, the company measures the expected credit losses of financial instruments at different stages. Where
the credit risk has not increased significantly since the initial confirmation of the financial instrument, it is in the first stage. The
Company measures the preparation for loss according to the expected credit loss in the next 12 months. Where the credit risk has
increased significantly since the initial confirmation but the credit impairment has not occurred, the financial instrument is in the
second stage. Where a credit impairment has occurred since the initial confirmation of the financial instrument, it shall be in the third
stage, and the Company shall prepare for measuring the expected credit loss of the whole survival period of the instrument.
For financial instruments with low credit risk on the balance sheet date, the company assumes that the credit risk has not
increased significantly since the initial recognition, and measures the loss provision based on the expected credit losses in the next 12
months.
For financial instruments that are in the first and second stages and with lower credit risk, the company calculates interest
income based on their book balances and actual interest rates without deduction for impairment provision. For financial instruments
in the third stage, interest income is calculated based on the amortized cost and the actual interest rate after the book balance minus
the provision for impairment.
Regarding bills receivable, accounts receivable, contract assets and financing receivables, regardless of whether there is a
significant financing component, the company measures the loss provision based on the expected credit losses throughout the
duration.
A Accounts receivable
Where there is objective evidence of impairment, as well as other receivable instruments, receivables, other receivables,
receivables financing and long-term receivables applicable to individual assessments, separate impairment tests are performed to
confirm expected credit losses and prepare individual impairment. For notes receivable, accounts receivable, other receivables,
financing of receivables and long-term receivables for which there is no objective evidence of impairment, or when individual
financial assets cannot be assessed at a reasonable cost, the company divides bills receivable, accounts receivable, other receivables,
receivable financing and long-term receivables into several combinations based on credit risk characteristics, and calculates expected
credit losses on the basis of the combination. The basis for determining the combination is as follows:
The basis for determining the combination of notes receivable is as follows:
Notes Receivable Combination1 Commercial Acceptance Bill
Notes Receivable Combination1 Commercial Acceptance Bill
For Notes receivable divided into portfolios, the company refers to historical credit loss experience, combined with current
conditions and predictions of future economic conditions, and calculates through defau lt risk exposure and expected credit loss rate
within the next 12 months or the entire duration Expected credit losses.
The basis for determining the combination of accounts receivable is as follows:
Accounts receivable combination 1 Accounts receivable business
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Other receivable portfolio 2 Receivables from related parties within the scope of consolidation
Accounts receivable combination 3 Real estate receivable business
Accounts receivable combination 4 Others receivable business
For the accounts receivable divided into a combination, the company refers to the historical credit loss experience, combined
with the current situation and the forecast of the future economic situation, compiles the account receivable age and the who le
expected credit loss rate table, and calculates the expected credit loss.
The basis for determining the combination of contract assets and the method for calculating expected credit losses are the sa me
as accounts receivable.
The basis for determining the combination of other receivables is as follows:
Other receivable portfolio 1 Interest receivable
Portfolio of other receivables 2 Dividends receivable
Other combinations of receivables 3 Deposit and margin receivable
Other receivable portfolio 4 Receivable advances
Combination of other receivables 5 Value-added tax receivable is increased and refunded
Other receivable portfolio 6 Receivables from related parties within the scope of consolidation
Other receivables portfolio 7 Other receivables
For other receivables divided into portfolios, the company refers to historical credit loss experience, combined with current
conditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit loss rate
within the next 12 months or the entire duration Expected credit losses.
The basis for determining the combination of receivables financing is as follows:
Receivables financing portfolio 1 bank acceptance bill
For Notes receivable divided into portfolios, the company refers to historical credit loss experience, combined with current
conditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit loss rate
within the next 12 months or the entire duration Expected credit losses.
Other debt investment
For other receivables divided into portfolios, the company refers to historical credit loss experience, combined with current
conditions and predictions of future economic conditions, and calculates through default risk exposure and expe cted credit loss rate
within the next 12 months or the entire duration Expected credit losses.
② Lower credit risk
If the risk of default on financial instruments is low, the borrower’s ability to meet its contractual cash flow obligations in the
short term is strong, and even if the economic situation and operating environment are adversely changed over a long period of time,
it may not necessarily reduce the receivables' performance of their contractual cash. The ability of the flow obligation, the financial
instrument is considered to have a lower credit risk.
③ Significant increase in credit risk
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
The company compares the default probability of the financial instrument during the expected lifetime determined by the
balance sheet date with the default probability of the expected lifetime during the initial confirmation to determine the relative
probability of the default probability of the financial instrument during the expected lifetime Changes to assess whether the credit
risk of financial instruments has increased significantly since initial recognition.
In determining whether the credit risk has increased significantly since the initial recognition, the Company considers
reasonable and evidenced information, including forward-looking information, that can be obtained without unnecessary additional
costs or effort. The information considered by the company includes:
A. Significant changes in internal price indicators resulting from changes in credit risk;
B. Adverse changes in business, financial or economic conditions that are expected to cause significant changes in the debtor’s
ability to perform its debt service obligations;
C. Whether the actual or expected operating results of the debtor have changed significantly; whether the regulatory, economic
or technical environment of the debtor has undergone significant adverse changes;
D. Whether there is a significant change in the value of the collateral used as debt collateral or the guarantee provided by a
third party or the quality of credit enhancement. These changes are expected to reduce the debtor’s economic motivation for
repayment within the time limit specified in the contract or affect the probability of default;
E. Whether there is a significant change in the economic motivation that is expected to reduce the debtor's repayment according
to the contractual deadline;
F. Anticipated changes to the loan contract, including whether the expected violation of the contract may result in the
exemption or revision of contract obligations, granting interest-free periods, rising interest rates, requiring additional collateral or
guarantees, or making other changes to the contractual framework of financial instruments change;
G. Whether the expected performance and repayment behavior of the debtor has changed significantly;
H. Whether the contract payment is overdue for more than (including) 30 days.
Based on the nature of financial instruments, the Company assesses whether credit risk has increased significantly on the bas is
of a single financial instrument or combination of financial instruments. When conducting an assessment based on a combination of
financial instruments, the Company can classify financial instruments based on common credit risk characteristics, such as overdue
information and credit risk ratings.
If the overdue period exceeds 30 days, the company has determined that the credit risk of financial instruments has increased
significantly. Unless the Company does not have to pay excessive costs or efforts to obtain reasonable and warranted informat ion, it
proves that although it has exceeded the time limit of 30 days agreed upon in the Contract, credit risks have not increased
significantly since the initial confirmation.
④ Financial assets with credit impairment
The company assesses on the balance sheet date whether financial assets measured at amortized cost and credit inve stments
measured at fair value and whose changes are included in other comprehensive income have undergone credit impairment. When one
or more events that adversely affect the expected future cash flows of a financial asset occur, the financial asset becomes a financial
asset that has suffered a credit impairment. Evidence that credit impairment has occurred in financial assets includes the fo llowing
observable information:
Major financial difficulties have occurred to the issuer or the debtor; Breach of contract by the debtor, such as payment of
interest or default or overdue of principal; (B) The concession that the debtor would not make under any other circumstances for
economic or contractual considerations relating to the financial difficulties of the debtor; The debtor is likely to be bankrupt or
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
undertake other financial restructuring; The financial difficulties of the issuer or debtor lead to the disappearance of the active market
for the financial asset; To purchase or generate a financial asset at a substantial discount, which reflects the fact that a credit loss has
occurred.
⑤ Presentation of expected credit loss measurement
In order to reflect the changes in the credit risk of financial instruments since the initial recognition, the Company re -measures
the expected credit losses on each balance sheet date, and the increase or reversal of the loss provision resulting therefrom is included
as an impairment loss or gain. Current profit and loss. For financial assets measured at amortized cost, the loss allowance offsets the
book value of the financial asset listed on the balance sheet; for debt investments measured at fair value and whose changes are
included in other comprehensive income, the company Recognition of its loss provisions in gains does not offset the book value of
the financial asset.
⑥ Canceled
If it is no longer reasonably expected that the contract cash flow of the financial assets will be fully or partially recovered, the
book balance of the financial assets will be directly reduced. Such write-off constitute the derecognition of related financial assets.
This usually occurs when the company determines that the debtor has no assets or sources of income that generate sufficient c ash
flow to cover the amount that will be written down.
If the financial assets that have been written down are recovered in the future, the reversal of the impairment loss is included in
the profit or loss of the current period.
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.6 – Listed Companies Engaged in Decoration Business.
12. Receivable financing
For details, please refer to 11. Accounts Receivable in V. Important Accounting Policies and Accounting Estimates in this
section.
13. Other receivables
Methods for Determining Expected Credit Loss of Other Receivables and Accounting Processing Methods
For details, please refer to 11. Accounts Receivable in V. Important Accounting Policies and Accounting Estimates in this
section.
14. Inventories
(1) Classification of inventories
Inventory refers to the finished products or commodities held by the Company for sale in its daily activities, the materials and
materials consumed in the course of production, in the course of production or in the course of providing labor services, including
subcontracting materials, raw materials, in-process products, finished products, finished products, inventories, turnover materials,
development costs, development products and assets formed by construction contracts, etc.
(2) Pricing of delivering inventory
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Inventories are measured at cost when procured. Raw materials, products in process and commodity stocks in transit are
measured by the weighted average method.
The real estate business inventory mainly includes inventory materials, products under development, completed development
products, and development products intended to be sold but temporarily rented out. Inventory is measured at the actual costs when
the fixed assets are obtained The actual costs of development products include land transfer payment, infrastructure and facility costs,
installation engineering costs, borrows before completion of the development and other costs during the development process. The
special maintenance funds collected in the first period are included in the development overheads. The actual costs of the
development product is priced using the separate pricing method.
Construction contracts are measured by the effective cost, including direct and indirect expenses genera ted before the contracts
are 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/los s account if
the conditions are not met.
(3) Inventory system
The company inventory adopts the perpetual inventory system, counting at least once a year, the inventory profit and loss
amount is included in the current year's profit and loss.
(4) Recognition of inventory realizable value and providing of impairment provision
On the balance sheet date, inventories are accounted depending on which is lower between the cost and the net realizable value.
If the cost is higher than the net realizable value, the impairment provision will be made.
The realizable net value of inventory should be recognized based on solid evidence with the purpose of the inventory and
after-balance-sheet-date events taken into consideration.
(1) In the course of normal production and operation, the net realizable value of finished goods, commodities and materials
directly used for sale shall be determined by the estimated price of the inventory minus the estimated cost of sale and related taxes.
The inventory held for the execution of a sales contract or a labor contract shall be measured on the basis of the contract price as its
net realizable value; If the quantity held is greater than the quantity ordered under the sales contract, the net realizable value of the
excess inventory is measured on the basis of the general sales price. For materials used for sale, the market price shall be used as the
measurement basis for the net realizable value.
②In the normal production and operation process, the inventory of materials that need to be processed is determined by the
amount of the estimated selling price of the finished product minus the estimated cost to be incurred at the time of completion,
estimated sales expenses and related taxes Realize the net value. If the net realizable value of the finished product produce d by it is
higher than the cost, the material is measured at cost; If the decrease in the price of the material indicates that the net realizable value
of the finished product is lower than the cost, the material is measured as the net realizable value and the inve ntory is prepared for a
decrease based on its difference.
③ Depreciation preparation of inventory is generally based on a single inventory item; For a large number of inventories with
a lower unit price, they are accrued by inventory type.
④ If the factors affecting the previous write-down of inventory value have disappeared on the balance sheet date, the amount
of the write-down will be restored and transferred back within the amount of inventory depreciation reserve that has been accrued,
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
and the amount returned will be included in the current profit and loss.
(5) Methods of amortization of swing materials
① Low-value consumables are amortized on on-off amortization basis at using.
② Packages are amortized on on-off amortization basis at using.
15. Contract assets
The company lists the right to receive consideration for the transferred goods or services (the right depends on other factors
other than the passage of time) as a contract asset, and it is confirmed when it obtains the unconditional (that is, only depending on
the passage of time) right to receive payment Accounts receivable; on the contrary, the company's obligation to transfer goods or
services to customers for consideration received or receivable from customers is listed as contract liabilities. When the company
fulfills its obligations to transfer goods or provide services to customers, contract liabilities are recognized as revenue. The company
presents the contract assets and contract liabilities under the same contract as a net amount.
Contract assets are recognized as impairment provision based on expected credit losses. For details, see 11. Accounts
Receivable in 5. Important Accounting Policies and Accounting Estimates in this section.
16. Contract costs
If the cost incurred in fulfilling the contract does not fall within the scope of other accounting standards and meets the following
conditions at the same time, the company will recognize it as an asset as the contract performance cost:
(1) The cost is directly related to a current or expected contract, including direct labor, direct materials, manufacturing expenses
(or similar expenses), clearly borne by the customer, and other costs incurred only due to the contract; ( 2) This cost incre ases the
company's future resources for fulfilling its performance obligations; (3) This cost is expected to be recovered.
Assets related to the contract cost are amortized on the same basis as the commodity revenue recognition related to the asset and
included in the current profit and loss.
If the book value of the asset related to the contract cost is higher than the difference between the following two items, the excess
will be provided for impairment and recognized as an asset impairment loss: (1) The company is expected to be able to transfe r the
goods related to the asset The remaining consideration obtained; (2) is the estimated cost of transferring the relevant goods. If the
depreciation factors in the previous period have changed, and the difference between the aforementioned two items is higher than the
book value of the asset, the asset depreciation reserve that has been withdrawn should be reversed and included in the current profit
and loss.
17. Long-term share equity investment
The Group's long-term equity investment includes control on invested entities and significant impacts on equity investment.
Invested entities on which the Group has significant impacts are associates of the Group.
(1) Basis for recognition of common control and major influence on invested entities
Common control refers to the common control of an arrangement in accordance with the relevant agreement, and the relevant
activities of the arrangement must be agreed upon by the participants who share control. In determining whether there is common
control, the first step is to determine whether all or a group of participants collectively control the arrangement, which is considered
collective control by all or a group of participants if all or a group of participants must act together to determine the activities
associated with the arrangement. Secondly, it is judged whether the decision on related activities of the arrangement must be agreed
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
by the participants who collectively control the arrangement. If there is a combination of two or more parties that can colle ctively
control an arrangement, it does not constitute joint control. When judging whether there is joint control, the protective rights en joyed
are not considered.
Major influence refers to the power to participate in decision-making of financial and operation policies of a company, but
cannot control or jointly control the making of the policies. When considering whether the Company can impose significant impacts
on the invested entity, impacts of conversion of shares with voting rights held directly or indirectly by the investor and voting rights
that can be executed in this period held by the investor and other party into shares of the invested entity should be conside red.
If the Company directly or through subsidiaries holds more than 20% (inclusive) but less than 50% of the shares with voting
rights of the invested entity, unless there is clear evidence proving that the Company cannot participate the decision-making of
production and operation of the invested entity, the Company has major influence on the invested entity.
(2) Recognition of initial investment costs
Long-term equity investments formed by merger of enterprises shall be determined in accordance with the following provisions:
A. In the case of an enterprise merger under the same control, where the merging party makes a valuation of the merger
by payment of cash, transfer of non-cash assets or undertaking liabilities, the share of the book value of the owner's interest in
the final controlling party's consolidated financial statements as the initial investment cost of the long-term equity investment at
the date of the merger. The difference between the initial investment cost of long-term equity investment and the cash paid, the
transferred non-cash assets and the book value of the debt assumed shall be adjusted to the capital reserve; if the capital reserve
is insufficient to offset, the retained earnings shall be adjusted;
Long-term equity investment generated by enterprise merger: for long-term equity investment obtained by merger of
enterprises under common control, the obtained share of book value of the interests of the merged party’s owner in the
consolidate financial statements on the merger date is costs; for long-term equity investment obtained by merger of enterprises
not under common control, the merger cost is the investment cost. Adjust the capital reserve according to the difference between
the initial investment cost of long-term equity investment and the total face value of the issued shares. If the capital reserve is
insufficient to offset or reduce, the retained income shall be adjusted;
For merger of entities under different control, the merger cost is the fair value of the asset paid, liability undertaken, and
equity securities issued for exchanging of control power over the entities at the day of acquisition. Agency expenses and other
administrative expenses such as auditing, legal consulting, or appraisal services occurred relating to the merger of entities are
accounted into current income account when occurred.
Long-term equity investments formed by merger of enterprises shall be determined in accordance with the following provisions:
For long-term equity investment obtained by cash, the actually paid consideration is the initial investment cost. Initial
investment costs include expenses, taxes and other necessary expenditures directly related to the acquisition of long-term equity
investments;
B. Long-term equity investments acquired from the issuance of interest securities are the initial investment costs based on the
fair value of the issue interest securities;
C. For long-term equity investments obtained through non-monetary asset exchanges, if the exchange has commercial
substance and the fair value of the exchanged assets or exchanged assets can be reliably measured, the fair value of the exchanged
assets and relevant taxes shall be used as the initial Investment cost, the difference between the fair value and book value of the
swapped-out asset is included in the current profit and loss; if the non-monetary asset exchange does not meet the above two
conditions at the same time, the book value of the swapped-out asset and relevant taxes will be used as the initial investment cost.
D. Long-term equity investments acquired through debt restructuring determine their recorded value at the fa ir value of the
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
waived claims and other costs such as taxes directly attributable to the assets and account for the difference between the fa ir value
and the book value of the waived claims.
(3) Subsequent measurement and recognition of gain/loss
The Company uses the cost method to measure long-term share equity investment in which the Company can control the
invested entity; and uses the equity method to measure long-term share equity investment in which the Company has substantial
influence on the invested entity.
① Cost
For the long-term equity investment measured on the cost basis, except for the announced cash dividend or profit included in
the practical cost or price when the investment was made, the cash dividends or profit distributed by the invested entity are
recognized as investment gains in the current gain/loss account.
Equity
Gains from long-term equity investment measured by equity
When the equity method is used to measure long-term equity investment, the investment cost will not be adjusted if the
investment cost of the long-term equity investment is larger than the share of fair value of the recognizable assets of the invested
entity. When it is smaller than the share of fair value of the recognizable assets of the invested entity, the book va lue 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 ca n be
shared or borne, recognized as investment gain and other misc. income. The book value of the long-term equity investment is
adjusted accordingly. The book value of the long-term equity investment should be accordingly decreased based on the share of profit
or cash dividend announced by the invested entity; according to other changes in the owner’s equity except for net profit and loss,
other misc income and profit distribution of the invested entity, adjust the book value of the long-term equity investment and record it
in the capital surplus (other capital surplus). When the share of the net gains that can be enjoyed is recognized, it is recognized after
the net profit of the invested entity is adjusted based on the fair value of the recognizeable assets of the invested entity according to
the Company's accounting policies and accounting period. Where the accounting policy and accounting period adopted by the
Invested unit are inconsistent with the Company, the financial statements of the Invested unit shall be adjusted in accordanc e with the
accounting policy and accounting period of the Company, and the investment income and other consolidated income shall be
recognized. Internal transaction gain not realized between the Company and affiliates is measured according to the shareholding
proportion and the investment gains is recoginzied after deduction. The unrealized internal transaction loss between the Company
and the invested entity is the impairment loss of transferred assets and should not be written off.
Where substantial influence on invested entities is imposed or joint control is implemented due to increase in investment, the
sum of the fair value of the original equity and increased investment on the conversion date is the initial investment cost u nder 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 remainin g
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 origina l 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.
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
(4) Equity investment held for sale
For the remaining equity investments not classified as assets held for sale, the equity method is adopted for accountin g
treatment.
Equity investments classified as held for sale to associates that are no longer eligible to hold classified assets for sale a re
retrospectively adjusted using the equity method starting from the date that they are classified as held for sale. The classification is
adjusted to hold the financial statements for the period to be sold.
(5) Impairment examination and providing of impairment provision
For investments in subsidiaries, associates and joint ventures, the method of accruing asset impairment is shown in 23.
Long-term asset impairment in this section, V. Important accounting policies and accounting estimates.
XVIII. Investment real estates
(1) Classification of investment real estate
Investment real estates are held for rent or capital appreciation, or both. These include, inter alia:
① Leased land using right
(2) the right to use the land that is transferred after holding and preparing for the increment.
③ Leased building
(2) Measurement of investment real estate
For investment real estates with an active real estate transaction market and the Company can obtain market price and other
information of same or similar real estates to reasonably estimate the investment real estates’ fair value, the Company will use the fair
value mode to measure the investment real estates subsequently. Variations in fair value are accounted into the current gain/loss
account.
The fair value of investment real estates is determined with reference to the current market prices of same or similar real
estates in active markets; when no such price is available, with reference to the recent transaction prices and consideration of factors
including transaction background, date and district to reasonably estimate the fair value; or based on the estimated lease ga ins and
present value of related cash flows.
For investment real estate under construction (including investment real estate under construction for the first time), if the fair
value cannot be reliably determined but the expected fair value of the real estate after completion is continuously and reliably
obtained, the investment real estate under construction is measured by cost. When the fair value can be measured reliably or after
completion (the earlier one), it is measured at fair value. For an investment real estate whose fair value is proven unable to be
obtained continuously and reliably by objective evidence, the real estate will be measured at cost basis until it is disposed and no
residual value remains as assumed.
If the cost model is used for subsequent measurement of investment real estate, depreciation or amortization is calculated
according to the straight-line method after the cost of investment real estate minus accumulated impairment and net residual value.
See this section, V. Important accounting policies, for the method of accruing asset impairment 23. Impairment of long-term assets in
accounting estimates.
The types of investment real estate, estimated economic useful life and estimated net residual value rate are determined as
follows:
Type Service year (year) Residual rate % Annual depreciation rate %
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Houses & buildings 35-50 10.00 1.80-2.57
19. Fixed assets
(1) Recognition conditions
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing services, lease or for
operation & management, and have more than one accounting year of service life. Fixed assets are recognized at the actual cos t of
acquisition when the following conditions are met: (1) The economic benefits associated with the fixed assets are likely to flow into
the enterprise. ② The cost of the fixed assets can be measured reliably. Overhaul cost generated by regular examination on fixed
assets is recognized as fixed assets costs when there is evidence proving that it meets fix assets recognition conditions. If not, it will
be accounted into the current gain/loss account.
(2) Depreciation method
Annual depreciation
Type Depreciation method Service year Residual rate
rate %
Houses & buildings Average age 35-50 10.00% 1.80%-2.57%
Mechanical equipment Average age 10.00 10.00% 9.00%
Transportation facilities Average age 5.00 10.00% 18.00%
Electronics and other
Average age 5.00 10.00% 18.00%
devices
PV power plants Average age 20.00 5.00% 4.75%
The company calculates depreciation based on the average life method from the next month when the fixed assets reach the expected
usable state; for fixed assets for which depreciation provision is made, the depreciation rate will be determined after the a ccumulative
depreciation provision amount is deducted.
At end of each fiscal year, verification will be made on the useful life, predicted retained value, and depreciation basis. The useful life
will be adjusted if the useful life is different from the predicted one; the net residual value will be adjusted if the net residual value is
different from the predicted one.
(3) Recognition and pricing of financing leased fixed assets
The Company 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 cost of a fixed asset acquired by a financial lease is determined on the
basis of the lower of the fair value of the leased asset at the date of the lease and the present value of the minimum leased payment.
The Group adopts the depreciation policy same as the self-owned fixed assets to made provision for depreciation of leased assets.
Depreciation shall be accrued within the life of the leased assets if it is possible to reasonably determine that the leased assets will be
entitled to ownership upon the expiry of the lease term; Depreciation is accrued within a shorter period between the lease term and
the service life of the leased asset if it is unable to reasonably determine that the leased asset ownership can be acquired at the end of
the lease term.
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
XX. Construction in process
(1) Construction in progress is accounted for by project classification.
(2) Standard and timing for transferring construction in process into fixed assets
The full expenditure incurred on the construction-in-progress project as a fixed asset is recorded as the value of the asset
before the asset is constructed to the intended usable state. This includes construction costs, the original cost of equipment, other
necessary expenditures incurred in order to enable the construction works to reach the intended usable status and the borrowing costs
incurred for the specific borrowing of the project and the general borrowing expenses incurred before the assets reach the intended
usable status. Construction in process will be transferred to fixed assets when it reaches the preset service condition. The fixed assets
that have reached the intended usable state but have not been completed shall be transferred to the fixed assets according to the
estimated value according to the estimated value according to the estimated value according to the project budget, cost or actual
project cost, etc. The depreciation of the fixed assets shall be accrued according to the company's fixed assets depreciation policy.
The original estimated value shall be adjusted according to the actual cost after the completion.
XXI. Borrowing expenses
(1) Recognition principles for capitalization of borrowing expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing or production of asset satisfying the
conditions of capitalizing, are capitalized and accounted as cost of related asset.
(1) Asset expenditure has occurred;
② The borrowing expense has already occurred;
③ Purchasing or production activity, which is necessary for the asset to reach the useful status, has already started.
Other interest on loans, discounts or premiums and exchange differences are included in the income and loss incurred in the
current period.
If the construction or production of assets satisfying the capitalizing conditions is suspended abnormally for over 3 months,
capitalizing of borrowing expenses shall be suspended. During the normal suspension period, borrowing expenses will be capita lized
continuously.
When the asset satisfying the capitalizing conditions has reached its usable or sellable status, capitalizing of borrowing
expenses shall be terminated.
(2) Calculation of the capitalization amount of borrowing expense
Interest expenses generated by special borrowings less the interests income obtained from the deposit of unused borrowings or
investment gains from temporary investment is capitalized; the capitalization amount for general borrowing is determined base d on
the capitalization rate which is the exceeding part of the accumulative assets expense over weighted average of the assets expense of
the special borrowing/used general borrowing.
If the assets that are constructed or produced under the condition of capitalization occupy the general borrowing, the intere st
amount to be capitalized in the general borrowing shall be calculated and determined by multiplying the capital rate of the general
borrowing by the weighted average of the asset expenditure of the accumulated assets whose expenditure exceeds that of the
specialized borrowing. The capitalization ratio is the weighted average interest rate of general borrowings.
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
XXII. Intangible assets
(1) Pricing method, service life and depreciation test
(1.1) Pricing of intangible assets
Recorded at the actual cost of acquisition.
(1.2) Amortization of intangible assets
① Useful life of intangible assets with limited useful life
Item Estimated useful life Basis
Land using right Term Use right assets
Trademarks and patents 10 years Reference to determine the lifetime of a company for which it
can bring economic benefits
Proprietary technology 10 years Reference to determine the lifetime of a company for which it
can bring economic benefits
Software 5, 10 years Reference to determine the lifetime of a company for which it
can bring economic benefits
At the end of each year, the Company will reexamine the useful life and amortization basis of intangible assets with limited
useful life.
(2) Intangible assets which cannot be foreseeable to bring economic benefits to enterprises shall be regarded as intangible
assets whose useful life is uncertain. For intangible assets with uncertain service life, the company reviews the service lif e of
intangible assets with uncertain service life at the end of each year. If it is still uncertain after rechecking, it shall conduct an
impairment test on the balance sheet date.
③ Amortization of intangible assets
For intangible assets with limited service life, the Company shall determine their service life at the time of acquisition, a nd
shall use the straight line method system to reasonably amortize their service life, and the amortization amount shall be included in
the profit and loss of the current period according to the beneficial items. The specific amortization amount is the amount a fter the
cost is deducted from the estimated residual value. For fixed assets for which depreciation provision is made, the depreciation rate
will be determined after the accumulative depreciation provision amount is deducted. The residual value of an intangible asset with
limited useful life is treated as zero, except where a third party undertakes to purchase the intangible asset at the end of its useful life
or to obtain expected residual value information based on the active market, which is likely to exist at the end of its useful life.
Intangible assets with uncertain service life will not be amortized. At the end of each year, the useful life of intangible a ssets
with uncertain useful life is reviewed, and if there is evidence that the useful life of intangible assets is limited, the useful life is
estimated and the system is reasonably amortized within the expected useful life.
(1.3) Impairment test of intangible assets
For details, see 23. Long-term asset impairment in this section, V. Important accounting policies and accounting estimates.
(2) Accounting policies for internal R&D expenses
(2.1) Specific standard for distinguish between research and development stage
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
① The company takes the information and related preparatory activities for further development activities as the research
stage, and the intangible assets expenditure in the research stage is included in the current profit and loss period.
② The development activities carried out after the company has completed the research stage as the developme nt stage.
(2.2) Specific conditions for capitalization of expenditures in the development phase
Expenditures in the development phase can be recognized as intangible assets only when the following conditions are met:
A. It is technically feasible to complete the intangible asset so that it can be used or sold;
B. Have the intention to complete the intangible asset and use or sell it;
C. The way intangible assets generate economic benefits, including the ability to prove that the products produced by the
intangible assets exist in the market or the intangible assets themselves exist in the market, and the intangible assets will be used
internally, which can prove their usefulness;
D. Have sufficient technical, financial and other resource support to complete the development of the intangible asset, and
have the ability to use or sell the intangible asset;
E. The expenditure attributable to the development stage of the intangible asset can be reliably measured.
23. Assets impairment
The Group uses the cost mode to continue measuring the assets impairment to investment real estate, fixed assets construction
in progress, intangible assets and goodwill (except for the inventories, investment real estate measured by the fair value mode,
deferred income tax assets and financial assets). The method is determined as follows:
The Company judges whether there is a sign of impairment to assets on the balance sheet day. If such sign exists, the Company
estimates the recoverable amount and conducts the impairment test. Impairment test is conducted annually for goodwill generated by
mergers and intangible assets that have not reached the useful condition no matter whether the impairment sign exists.
The recoverable amount is determined by the higher of the net of fair value minus disposal expense and the present value of
the predicted future cash flow. The Company estimates the recoverable amount on the individual asset item basis; whether it is hard
to estimate the recoverable amount on the individual asset item basis, determine the recoverable amount based on the asset group that
the assets belong to. The assets group is determined by whether the main cash flow generated by the group is independent from those
generated by other assets or assets groups.
When the recoverable amount of the assets or assets group is lower than its book value, the Company writes down the book
value to the recoverable amount, the write-down amount is accounted into the current income account and the assets impairment
provision is made.
For goodwill impairment test, the book value of goodwill generated by mergers is amortized through reasonable measures
since the purchase day to related asset groups; those cannot be amortized to related assets groups are amortized to related
combination of asset groups. The related asset groups or combination of asset groups refer to those that can benefit from the
synergistic effect of mergers and must not exceed to the reporting range determined by the Company.
When the impairment test is conducted, if there is sign of impairment to the asset group or combination of asset groups related
to goodwill, first perform impair test for asset group or combination of asset groups without goodwill and calculate the recoverable
amount and recognize the related impairment loss. Then conduct impairment test on those with goodwill, compare the book value
with recoverable amount. If the recoverable amount is lower than the book value, recognize the impairment loss of the goodwill.
Once recognized, the asset impairment loss cannot be written back in subsequent accounting period.
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
24. Long-term amortizable expenses
The long-term outstanding expenses shall be accounted for all expenses incurred by the Company but which shall be borne by
the current and future periods for more than one year, and the long-term outstanding expenses shall be amortized averagely within the
benefit period.
25. Contract liabilities
For details, please refer to 15. Contract assets in 5. Important accounting policies and accounting estimates in this section.
26. Staff remuneration
(1) Accounting of operational leasing
① Basic salary of employees (salary, bonus, allowance, subsidy)
In the accounting period for which the staff and workers provide services, the Company shall confirm the actual short-term
remuneration as liabilities and shall account for the current income and loss, except as required or permitted by other accounting
standards.
② Employee welfare
The employee benefits incurred by the Company shall be included in the current profit and loss or related asset costs according
to the actual amount incurred. Where the employee's benefit is non-monetary, it shall be measured on the basis of fair value.
③ Social insurance premiums and housing accumulation funds such as health insurance premiums, work injury pre miums,
birth insurance premiums, trade union funds and staff and education funds
The company pays the medical insurance premiums, work injury insurance premiums, birth insurance premiums, etc. social
insurance premiums and housing accumulation funds for the staff and workers, as well as the union funds and the staff and workers
education funds according to the regulations, in the accounting period for which the staff and workers provide services, the
corresponding salary amount of the staff and workers, and confirms the corresponding liabilities, which are included in the current
profit and loss or related asset costs.
④ Short-term paid leave
The company accumulates the salary of the employees who are absent from work with pay when the employees provide
service, thus increasing their future right of absence with pay. The company confirms the salary of the employee related to the
absence of non-cumulative salary during the actual absence accounting period.
⑤ Short-term profit share program
If the profit-sharing plan meets the following conditions at the same time, the Company shall confirm the salary payable to the
staff and workers:
A. The legal or presumptive obligation of the enterprise to pay the remuneration of its employees as a result of past matters ;
B. The amount of employee compensation obligations due to the profit sharing plan can be reliably estimated.
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
(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 a ssume any
responsibility after making fixed contribution to an independent fund. The defined plan includes basic pension and unemployme nt
insurance. The contribution of the plan is recognized as liabilities and recorded in the profit and loss of this perio d or related assets
costs.
(3) Accounting of dismiss welfare
If the company provides termination benefits to employees, the employee compensation liabilities arising from the termination
benefits shall be recognized at the earliest of the following two and shall be included in the current profit and loss:
① An enterprise may not unilaterally withdraw the resignation benefits provided for by the dismissal plan or reduction
proposal;
② When the enterprise recognizes the costs or expenses related to the reorganization involving the payment of resignation
benefits.
(4) Accounting of other long-term staff welfare
Inapplicable
27. Anticipated liabilities
(1) Recognition standards of anticipated liabilities
When responsibilities occurred in connection to contingent issues, and all of the following conditions are satisfied, they are
recognized as expectable liability in the balance sheet:
① This responsibility is a current responsibility undertaken by the Company;
② Execution of this responsibility may cause financia l benefit outflow from the Company;
③ Amount of the liability can be reliably measured.
(2) Measurement of anticipated liabilities
Expected liabilities are initially measured at the best estimation on the expenses to exercise the current responsibility, and with
considerations to the relative risks, uncertainty, and periodic value of currency. On each balance sheet date, review the boo k value of
the estimated liabilities. Where there is conclusive evidence that the book value does not reflect the current be st estimate, the book
value is adjusted to the current best estimate.
28. Revenue
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.6 – Listed Companies Engaged in Decoration Business.
Specific revenue recognition method
① Construction contracts
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
The subway screen door project of the subsidiary Zhichuang Technology Company and the curtain wall decoration projects of
the subsidiary Fangda Jianke Company are single construction contracts. The products produced by the company during the
performance of the contract have irreplaceable uses, and during the entire contract period The company has the right to colle ct
payment for the part of the contract that has been completed so far. The company recognizes revenue for this type of business within
a period of time based on the progress of the contract. The accounting method is as follows:
When the contract between the company and the customer meets the following conditions at the same time, the company will
confirm the revenue and expenses of the construction contract on the balance sheet date according to the percentage of comple tion
method when the customer obtains control of the relevant goods: all parties to the contract have approved the contract and promised
to perform it Respective obligations; the contract clarifies the rights and obligations of the parties to the contract relate d to the
transferred goods or the provision of labor; the contract has clear payment terms related to the transferred goods; the contract has
commercial substance, that is, the performance of the contract will change the company The risk, time distribution or amount of
future cash flow; the consideration that the company has the right to obtain when transferring goods to customers is likely to be
recovered.
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 inco me, the
predicted loss shall be recognized as current cost instantly.
② Sales product
The company sells products and recognizes revenue when the customer obtains control of the relevant 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.
The credit period granted by the company to customers is consistent with industry practices, and there is no major financing
component.
③ Real estate sales
The Company's real estate sales revenue is recognized when the control of the property is transferred to the customer. Based
on the terms of the sales contract and the legal provisions applicable to the contract, the control of the property can be tr ansferred
within a certain period of time or at a certain point in time. Only if the goods produced by the company during the performance of the
contract have irreplaceable uses, and the company has the right to collect payment for the cumulative performance part that has been
completed during the entire contract period, the performance obligation has been completed during the contract period. The pr ogress
is recognized as revenue within a period of time, and the progress of the completed performance obligations is determined in
accordance with the ratio of the contract costs actually incurred to complete the performance obligations to the estimated to tal cost of
the contract. Otherwise, the income is recognized when the customer obtains the physical ownership or legal ownership of the
completed property and the company has obtained the current right of collection and is likely to recover the consideration.
The company’s existing property sales revenue is applicable to be recognized at a certain point in time, 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.
Accounting policies used in revenue recognition and measurement
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
The company recognizes revenue based on the expected amount of consideration that is entitled to receive when the customer
obtains control of the relevant goods or services.
29. Government subsidy
(1) Government subsidy
Government subsidies are recognized when the following conditions are met:
(1) Requirements attached to government subsidies;
(2) The company can receive government subsidies.
(2) Government subsidy
When a government subsidy is monetary capital, it is measured at the received or receivable amount. None monetary capital
are measured at fair value; if no reliable fair value available, recognized at RMB1.
(3) Recognition of government subsidies
The company's government subsidies are calculated using the gross method.
Assets-related
Government subsidies related to assets are obtained by the Company to purchase, build or formulate in other manners
long-term assets; or subsidies related to benefits. If the asset-related government subsidy is recognized as deferred gain, should be
recorded in gain and loss in the service life. Government subsidy measured at the nominal amount is accounted into current income
account. If the relevant assets are sold, transferred, scrapped or damaged before the end of their useful life, the unallocated relevant
deferred income balance shall be transferred to the profit and loss of the current period of disposition of the assets.
Gain-related government subsidy should be accounted as follows:
The Company divides government subsidies into assets-related and earnings-related government subsidies. Gain-related
government subsidy should be accounted as follows:
(1) Subsidy that will be used to compensate related future costs or losses should be recognized as deferred gain and recorded
in the gain and loss of the current report and offset related cost;
(2) Subsidy that is used to compensate existing cost or loss should be recorded in the gain and loss of the current period or
offset related cost.
For government subsidies that include both asset-related and income-related parts, separate different parts for accounting
treatment; It is difficult to distinguish between the overall classification of government subsidies related to benefits.
Government subsidy related to routine operations should be recorded in other gains or offset related cost. Government subsidy
not related to routine operations should be recorded in non-operating income or expense.
③ Policy preferential loan discount
The policy-based preferential loan obtained has interest subsidy. If the government allocates the interest-subsidy funds to the
lending bank, the loan amount actually received will be used as the entry value of the loan, and the borrowing c ost 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.
(2) Government subsidy refund
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
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 def erred income
is written off and the excess is credited to the current profit or loss; In other cases, it is directly included in the curre nt profit and loss.
30. Differed income tax assets and differed income tax liabilities
The Company uses the temporary difference between the book value of the assets and liabilities on the balance sheet day and
the tax base and the liabilities method to recognize the deferred income tax. 26. Deferred income tax assets and deferred inc ome tax
liabilities
(1) Deferred income tax assets
For deductible temporary discrepancies, deductible losses and tax offsets that can be carried forward for future years, the
impact on income tax is calculated at the estimated income tax rate for the transfer-back period and the impact is recognized as
deferred income tax assets, provided that the Company is likely to obtain future taxable income for deductible temporary
discrepancies, deductible losses and tax offsets.
At the same time, the impact on income tax of deductible temporary discrepancies resulting from the initial recognition of
assets or liabilities in transactions or matters with the following characteristics is inconclusive as deferred income tax as sets:
A. The transaction is not a business combination;
B. the transaction is not a merger and the transaction does not affect the accounting profit or taxable proceeds;
In the event of temporary discrepancy of deductible investment related to subsidiaries, joint ventures and joint ventures, an d
meeting the following two conditions, the amount of impact (talent) on income tax shall be deemed as deferred income tax assets:
A. Temporary discrepancies are likely to be reversed in the foreseeable future;
B. In the future, it is likely to obtain taxable income that can be used to offset the deductible temporary differences;
On the balance sheet date, if there is conclusive evidence that sufficient taxable income is likely to be obtained in the fut ure to
offset the deductible temporary differences, the deferred income tax assets that have not been recognized in the previous period are
recognized.
On the balance sheet day, the Company re-examines the book value of the deferred income tax assets. If it is unlikely to have
adequate taxable proceeds to reduce the benefits of the deferred income tax assets, less the deferred income tax assets’ book value.
When there is adequate taxable proceeds, the lessened amount will be reversed.
(2) Deferred income tax assets
All provisional differences in taxable income of the Company shall be measured on the basis of the estimated income tax rate
for the period of transfer-back and shall be recognized as deferred income tax liabilities, except that:
At the same time, the impact on income tax of deductible temporary discrepancies resulting the initial recognition of assets or
liabilities in transactions or matters with the following characteristics is inconclusive as deferred income tax Liabilities:
A. Initial recognition of goodwill;
B. Initial recognition of goodwill, or of assets or liabilities generated in transactions with the following features: the
transaction is not a merger and the transaction does not affect the accounting profit or taxable proceeds;
② In the event of temporary discrepancy of deductible investment related to subsidiaries, Joint venture joint ventures, and
meeting the two conditions, the amount of impact (talent) on income tax shall be deemed as deferred income tax assets:
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
A. The Company is able to control the time of temporary discrepancy transfers;
B Temporary discrepancies are likely to be reversed in the foreseeable future;
(3) Deferred income tax assets
(1) Deferred income tax liabilities or assets associated with enterprise consolidation
Temporary difference of taxable tax or deductible temporary difference generated by enterprise me rger under non-same
control. When deferred income tax liability or deferred income tax asset is recognized, related deferred income tax expense (or
income) is usually adjusted as recognized goodwill in enterprise merger.
② Amount of shares paid and accounted as owners' equity
Except for the adjustment goodwill generated by mergers or deferred income tax related to transactions or events directly
accounted into the owners’ equity, income tax is accounted as income tax expense into the current gain/loss account. The effects of
temporary discrepancy on income tax include the following: Other integrated benefits such as fair value change of financial a ssets
available for sale, retroactive adjustment of accounting policy changes or retroactive restatement of accounting error correction
discrepancy to adjust the initial retained income, and mixed financial instruments including liabilities and equity.
③ Compensation for losses and tax deductions
A. Compensable losses and tax deductions from the company's own operat ions
Deductible losses refer to the losses calculated and determined in accordance with the provisions of the tax law that are
allowed to be made up with the taxable income of subsequent years. The uncovered losses (deductible losses) and tax deductions that
can be carried forward in accordance with the tax law are treated as deductible temporary differences. When it is expected that
sufficient taxable income is likely to be obtained in the future period when it is expected to be available to make up for losses or tax
deductions, the corresponding deferred income tax assets are recognized within the limit of the taxable income that is likely to be
obtained, while reducing the current period Income tax expense in the income statement.
B. Compensable uncovered losses of the merged company due to business merger
In a business combination, if the company obtains the deductible temporary difference of the purchased party and does not
meet the deferred income tax asset recognition conditions on the purchase date, it shall not be recognized. Within 12 months after the
purchase date, if new or further information is obtained indicating that the relevant conditions on the purchase date already exist, and
the economic benefits brought about by the temporary difference are expected to be deducted on the purchase date, confirm the
relevant delivery. Deferred income tax assets, while reducing goodwill, if the goodwill is not enough to offset, the difference is
recognized as the current profit and loss; except for the above circumstances, the deferred tax assets related to the business
combination are recognized and included in the current profit and loss.
④Temporary difference caused by merger offset
If there is a temporary difference between the book value of assets and liabilities in the consolidated balance sheet and the
taxable basis of the taxpayer due to the offset of the unrealized internal sales gain or loss, the deferred income tax asset or the
deferred income tax liability is confirmed in the consolidated balance sheet, and the income tax expense in the consolidated profit
statement is adjusted, with the exception of the deferred income tax related to the transaction or event directly included in the owner's
equity and the merger of the enterprise.
⑤ Share payment settled by equity
If the tax law provides for allowable pre-tax deduction of expenses related to share payment, within the period for which the
cost and expense are recognized in accordance with the accounting standards, the Company shall calculate the tax basis and
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
temporary discrepancy based on the estimated pre-tax deduction amount at the end of the accounting period and confirm the relevant
deferred income tax if it meets the conditions for confirmation. Of these, the amount that can be deducted before tax in the future
exceeds the cost related to share payment recognized in accordance with the accounting standards, and the excess income tax s hall be
directly included in the owner's equity.
31. Leasing
(1) Accounting of operational leasing
① The Company as the leasor: Rentals from operational leasing are recognized as current gains on straight basis to the
periods of leasing. Where the lessor provides a lease-free period, the total rent shall be apportioned within the whole lease-free period
without deducting the lease-free period according to the straight line method or other reasonable method, and the rent-free period
shall be recognized as well as the corresponding liabilities. People If the charterer undertakes certain expenses, the Compan y shall
distribute the rent Expense balance deducted from the total rent income during the lease term.
Initial direct expenses are recorded to current income account. In the event of an agreement or rent, the current profit and loss
shall be included in the actual occurrence.
② When the Company is the operating lessor, the rent received shall be recognized as income within the lease term by the
straight line method. Where the lessor provides a lease-free period, the total rent shall be apportioned within the whole lease-free
period without deducting the lease-free period according to the straight line method or other reasonable method, and the rent-free
period shall be recognized as well as the corresponding liabilities. If the charterer undertakes certain expenses, the Company shall
distribute the rent income balance deducted from the total rent income during the lease term.
Initial direct expenses are recorded to current income account. Larger amounts shall be capitalized and included in current profits and
losses in installments on the same basis as the confirmed rental income during the entire operating lease period. In the event of an
agreement or rent, the current profit and loss shall be included in the actual occurrence.
(2) Accounting of operational leasing
Inapplicable
32. Other significant accounting policies and estimates
(1) Measurement at fair value
Fair value is the price that can be obtained from selling an asset or paid for transferring liabilities in an orderly transac tion on
the measurement date.
The company measures the fair value of related assets or liabilities at the prices in the main market. If there is no major marke t,
the company measures the fair value of the relevant assets or liabilities at the most favorable market prices. The Group uses
assumptions that market participants use to maximize their economic benefits when pricing the asset or liability.
The main market refers to the market with the highest transaction volume and activity of the related assets or liabilities. The
most favorable market means the market that can sell the related assets at the highest amount or transfer the related liabilities at the
lowest amount after considering the transaction cost and transportation cost.
For financial assets or liabilities in an active market, The Company determines their fair value based on quotations in the
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
active market. If there is no active market, the Company uses evaluation techniques to determine the fair value.
For the measurement of non-financial assets at fair value, the ability of market participants to use the assets for optimal
purposes to generate economic benefits, or the ability to sell the assets to other market participants that can be used for optimal
purposes to generate economic benefits.
① Valuation technology
The company adopts valuation techniques that are applicable in the current period and are supported by sufficient data and
other information. The valuation techniques used mainly include market method, income method and cost method. The company
uses a method consistent with one or more of the valuation techniques to measure fair value. If multiple valuation techniques are used
to measure fair value, the reasonableness of each valuation result shall be considered, and the fair value shall be selected as the most
representative of fair value under the current circumstances. The amount of value is regarded as fair value.
The The Company equipment are applicable in the current circumstances and have sufficient available data and other
information to support the use of the relevant observable input values prioritized. Unobservable input values are used only w hen the
observable input value cannot be obtained or is not feasible. Observable input values are input values that can be obtained from
market data. The Group uses assumptions that market participants use to maximize their economic benefits when pricing the ass et or
liability. Non-observable input values are input values that cannot be obtained from market data. The input value is obtained based on
the best information available on assumptions used by market participants in pricing the relevant asset or liability.
②Fair value hierarchy
This company divides the input value used in fair value measurement into three levels, and first uses the first level input value,
then uses the second level input value, and finally uses the third level input value. First level: quotation of same assets or liabilities in
an active market (unadjusted) The second level input value is a directly or indirectly observable input value of the asset or liability in
addition to the first level input value. The input value of the third level is the unobservable input value of the related asset or liability.
(2) Hedge accounting
(1) Classification of inventories
The company's hedge is a cash flow hedge.
Cash flow hedging refers to the hedging of cash flow risk. The change in cash flow is derived from specific risks associated
with recognized assets or liabilities, expected transactions that are likely to occur, or with respect to the components of the
above-mentioned project and will affect the profits and losses of the enterprise.
(2) Hedging tools and hedged projects
Hedging means a financial instrument designated by the Company for the purpose of hedging, whose fair value or cash flow
variation is expected to offset the fair value or cash flow variation of the hedged item, including:
① Financial liabilities measured at fair value with variations accounted into current income account Check-out options can
only be used as a hedging tool if the option is hedged, including those embedded in a hybrid contract. Derivatives embedded i n a
hybrid contract but not split cannot be used as separate hedging tools.
② Non-derivative financial assets or non-derivative financial liabilities that are measured at fair value and whose changes are
included in the current profit and loss, but designated as fair value and whose changes are included in the current profit and loss, and
their own credit risk changes caused by changes in fair value except for financial liabilities included in other comprehensive income.
Own equity instruments are not financial assets or financial liabilit ies and cannot be used as hedging instruments.
A hedged item refers to an item that exposes the company to the risk of changes in fair value or cash flow and is designated as
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
the hedged object and can be reliably measured. The company designates the follow ing individual projects, project portfolios or their
components as hedged projects:
① Confirmed assets or liabilities.
② Confirmed commitments that have not yet been confirmed. Confirmed commitment refers to a legally binding agreement
to exchange a specific amount of resources at an agreed price on a specific date or period in the future.
③ Expected transactions that are likely to occur. Anticipated transactions refer to transactions that have not yet been
committed but are expected to occur.
④ Net investment in overseas operations.
The above-mentioned project components refer to the parts that are less than the overall fair value or cash flow changes of the
project. The company designates the following project components or their combinations as hedged items:
① The part of the change in fair value or cash flow (risk component) that is only caused by one or more specific risks in the
overall fair value or cash flow changes of the project. According to the assessment in a specific market environment, the ris k
component should be able to be individually identified and reliably measured. The risk component also includes the part where the
fair value or cash flow of the hedged item changes only above or below a specific price or other variables.
② One or more selected contractual cash flows.
③ The component of the nominal amount of the project, that is, the specific part of the whole amount or quantity of the
project, may be a certain proportion of the whole project, or may be a certain level of the whole project. If a certain level includes
early repayment rights and the fair value of the early repayment rights is affected by changes in the risk of the hedge, the level shall
not be designated as the hedged item of the fair value hedge, but in the measurement of the hedged item except when the fair value
has included the influence of the prepayment right.
(3) Evaluation of hedging relationship
When the hedging relationship is initially specified, the Group officially specifies the related hedging relationships with
official documents recording the hedging relationships, risk management targets and hedging strategies. This document sets out the
hedging tools, hedged items, the nature of hedged risks, and the company's assessment of hedged effectiveness . Hedging means a
financial instrument designated by the Company for the purpose of hedging, whose fair value or cash flow variation is offset the fair
value or cash flow variation of the hedged item, including: Such hedges are continuously evaluated on and after the initial specified
date to meet the requirements for hedging validity.
If the hedging instrument has expired, been sold, the contract is terminated or exercised (but the extension or replacement a s
part of the hedging strategy is not treated as expired or contract termination), or the risk management objective changes, resulting in
hedging The relationship no longer meets the risk management objectives, or the economic relationship between the hedged item and
the hedging instrument no longer exists, or the impact of credit risk begins to dominate in the value changes caused by the economic
relationship between the hedged item and the hedging instrument, or when the hedge no longer meets the other conditions of the
hedge accounting method, the company terminates the use of hedge accounting.
If the hedging relationship no longer meets the requirements for hedging effectiveness due to the hedging ratio, but the risk
management objective of the designated hedging relationship has not changed, the company shall rebalance the hedging relationship.
(4) Revenue the of revenue recognition and measurement
If the strict conditions of the hedging accounting method are satisfied, the following methods shall be applied:
Cash flow hedging
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
The part of hedging tool gains or losses that is valid for hedging is recognized as other comprehensive income as a cash flow
hedging reserve, and the part that is invalid for hedging (that is, other gains or losses after deducting other comprehensive income),
are counted Into the current profit and loss. The amount of cash flow hedging reserve is determined according to the lower of the
absolute amounts of the following two items: ①accumulated gains or losses of hedging instruments since the hedging. The amount
in the effective arbitrage is recognized by the accumulative gains or losses from the starting of arbitrage and accumulative changes to
the current value of future forecast cash flows from the start of arbitrage.
If the expected transaction of the hedged asset is subsequently recognized as a non-financial asset or non-financial liability, or
if the expected transaction of the non-financial asset or non-financial liability forms a defined commitment to the applicable fair
value hedge accounting, the amount of the cash flow hedge reserve originally recognized in the other consolidated income is
transferred out to account for the initial recognized amount of the asset or liability. For the remaining cash flow hedges, d uring the
same period when the expected cash flow to be hedged affects the profit and loss, if the expected sales occur, the cash flow hedge
reserve recognized in other comprehensive income is transferred out and included in the current profit and loss.
(3) Repurchase of the Company’s shares
(1) In the event of a reduction in the Company's share capital as approved by legal procedure, the Company shall reduce the
share capital by the total amount of the written-off shares, adjust the owner's equity by the difference between the price paid by the
purchased stocks (including transaction costs) and the total amount of the written-off shares, offset the capital reserve (share capital
premium), surplus reserve and undistributed profits in turn; A portion of a capital reserve (share capital premium) that is less than the
total face value and less than the total face value.
(2) The total expenditure of the repurchase shares of the company, which is managed as an inventory share before they are
cancelled or transferred, is converted to the cost of the inventory shares.
(3) Increase in the capital reserve (capital premium) at the time of transfer of an inventory unit, the portion of the transfer
income above the cost of the inventory unit; Lower than the inventory stock cost, the capital reserve (share ca pital premium), surplus
reserve, undistributed profits in turn.
(4) Significant accounting judgment and estimate
The Company continuously reviews significant accounting judgment and estimate adopted for the reasonable forecast of future
events based on its historical experience and other factors. Significant accounting judgment and assumptions that may lead to major
adjustment of the book value of assets and liabilities in the next accounting year are listed as follows:
Classification of financial assets
The major judgements involved in the classification of financial assets include the analysis of business model and contract
cash flow characteristics.
The company determines the business mode of managing financial assets at the level of financial asset portf olio, taking into
account such factors as how to evaluate and report financial asset performance to key managers, the risks that affect financial asset
performance and how to manage it, and how to obtain remuneration for related business managers.
When the company assesses whether the contractual cash flow of financial assets is consistent with the basic borrowing
arrangement, there are the following main judgments: whether the principal may change due to early repayment and other reasons
during the duration of the period or the amount of change; whether the interest Including the time value of money, credit risk, other
basic borrowing risks, and consideration of costs and profits. For example, does the amount paid in advance reflect only the unpaid
principal and the interest based on the unpaid principal, as well as the reasonable compensation paid for early termination of the
contract.
Measurement of expected credit losses of accounts receivable
65
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
The Company calculates the expected credit loss of accounts receivable through the risk exposure of accounts receivable
default and the expected credit loss rate, and determines the expected credit loss rate based on the default probability and the default
loss rate. When determining the expected credit loss rate, the company uses internal historical credit loss experience and other data,
combined with current conditions and forward-looking information to adjust the historical data. When considering forward-looking
information, the indicators used by the company include the risks of economic downturn, changes in the external market environment,
technological environment, and customer conditions. The company regularly monitors and reviews assumptions related to the
calculation of expected credit losses.
Deferred income tax assets
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 prof it and determine
the amount of the deferred tax assets based on the taxation strategy.
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).
Estimate of fair value
The Group uses fair value to measure investment real estate and needs to estimate the fair value of investment real estate at
least quarterly. This requires the management to reasonably estimate the fair value of the investment real estate with the he lp of
valuation experts.
Development cost
For property that has been handed over with income recognized, but whose public facilities have not been constructed or not
been completed, the management will estimate the development cost for the part that has not been started according to the budget to
reflect the operation result of the property sales.
33. Major changes in accounting policies and estimates
(1) Changes in accounting policies
√ Applicable □ Inapplicable
Account policy changes and reasons Approval procedure Remark
According to the relevant regulations of This change in accounting policies was
the Ministry of Finance, the new revenue reviewed and approved at the 22nd
standard will be implemented from January meeting of the 8th Board of Directors held
1, 2020 on April 16, 2020.
As of January 1, 2020, the Company has implemented new revenue guidelines, listed the assigned goods or services entitled to
receive consideration as contractual assets, and has been recognized as accounts receivable upon acquisition of unconditional
collection rights; The non-leased portion of the advances is included in the contractual liability and the tax portion is included in the
other current liabilities.
66
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
According to the regulations of the convergence between the old and new standards, the company adjusts the amount of
retained earnings at the beginning of the period and other related items in the financial statements based on the cumulative impact of
the first implementation of the new income standard, and does not adjust the information for the comparable period.
For details of the impact of this change in accounting policies on the statement items, see "(3) The first implementation of the
new income standards and adjustments to the new lease standards from 2020 on the first implementation of the financial statements
related items at the beginning of the year" under this item.
(2) Changes in major accounting estimates
√ Applicable □ Inapplicable
Effective Remark
Account policy changes and reasons Approval procedure
time s
In accordance with the requirements of the new financial instrument standards, This change in
enterprises should assess whether the credit risk of relevant financial instruments has accounting estimates
changed significantly on each balance sheet date. The company uses the latest was reviewed and
historical data to calculate the expected credit loss in 2020 according to the method approved at the 22nd 1 January
of calculating expected credit losses in 2019, which has changed significantly from meeting of the 8th 2020
2019. In order to more objectively and truly reflect the financial status and operating Board of Directors
results of the company’s various businesses, Specially make changes in accounting held on April 16,
estimates of accounts receivable and expected credit loss rate of contract assets. 2020.
The impact of this change in accounting estimates on the 2020 semi-annual financial statement items is: increase accounts receivable
by 15,632,429.65 yuan, increase contract assets by 79,360,828.79 yuan, reduce deferred income tax assets by 14,253,692.64 yuan,
and increase credit impairment losses (losses are marked with "-" No.) 94,993,258.44 yuan, increase deferred income tax expense by
14,253,692.64 yuan, increase net profit by 80,739,565.80 yuan.
(3) The first implementation of the new financial instruments guidelines, new income standards, new lease
standards, adjustments the first implementation of the financial statements at the beginning of the year
Applicable
Whether to adjust the balance sheet accounts at the beginning of the year
√ Yes □ No
Consolidated Balance Sheet
In RMB
Item 31 December 2019 1 January 2020 Adjustment
Current asset:
Monetary capital 1,209,811,978.95 1,209,811,978.95
Settlement provision
Outgoing call loan
Transactional financial
10,330,062.18 10,330,062.18
assets
Derivative financial
67
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
assets
Notes receivable 305,070,930.97 305,070,930.97
Account receivable 1,956,191,307.07 486,113,221.52 -1,470,078,085.55
Receivable financing 2,954,029.00 2,954,029.00
Prepayment 21,327,109.18 21,327,109.18
Insurance receivable
Reinsurance receivable
Provisions of
Reinsurance contracts
receivable
Other receivables 139,947,655.35 139,947,655.35
Including: interest
receivable
Dividend
receivable
Repurchasing of
financial assets
Inventory 733,711,143.46 733,711,143.46
Contract assets 1,470,078,085.55 1,470,078,085.55
Assets held for sales
Non-current assets due
in 1 year
Other current assets 323,765,585.90 323,765,585.90
Total current assets 4,703,109,802.06 4,703,109,802.06
Non-current assets:
Loan and advancement
provided
Debt investment
Other debt investment
Long-term receivables
Long-term share equity
57,222,240.83 57,222,240.83
investment
Investment in other
20,660,181.44 20,660,181.44
equity tools
Other non-current
5,009,728.02 5,009,728.02
financial assets
68
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Investment real estate 5,522,391,984.11 5,522,391,984.11
Fixed assets 477,332,830.92 477,332,830.92
Construction in process 129,988,982.86 129,988,982.86
Productive biological
assets
Gas & petrol
Use right assets
Intangible assets 78,322,265.05 78,322,265.05
R&D expense
Goodwill
Long-term amortizable
3,875,198.12 3,875,198.12
expenses
Deferred income tax
343,349,564.70 343,349,564.70
assets
Other non-current assets 28,701,802.00 28,701,802.00
Total of non-current assets 6,666,854,778.05 6,666,854,778.05
Total of assets 11,369,964,580.11 11,369,964,580.11
Current liabilities
Short-term loans 724,618,197.34 724,618,197.34
Loans from Central
Bank
Call loan received
Transactional financial
liabilities
Derivative financial
96,767.62 96,767.62
liabilities
Notes payable 578,816,027.44 578,816,027.44
Account payable 1,190,773,300.24 1,190,773,300.24
Prepayment received 136,340,104.73 1,332,457.45 -135,007,647.28
Contract liabilities 123,981,276.51 123,981,276.51
Selling of repurchased
financial assets
Deposit received and
held for others
Entrusted trading of
securities
69
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Entrusted selling of
securities
Employees' wage
55,847,134.20 55,847,134.20
payable
Taxes payable 17,848,987.68 17,848,987.68
Other payables 701,432,408.28 701,432,408.28
Including: interest
payable
Dividend
payable
Fees and commissions
payable
Reinsurance fee payable
Liabilities held for sales
Non-current liabilities
922,346,563.72 922,346,563.72
due in 1 year
Other current liabilities 181,694,574.47 192,720,945.24 11,026,370.77
Total current liabilities 4,509,814,065.72 4,509,814,065.72
Non-current liabilities:
Insurance contract
provision
Long-term loans 546,501,491.56 546,501,491.56
Bond payable
Including: preferred
stock
Perpetual
bond
Lease liabilities
Long-term payable
Long-term employees’
wage payable
Anticipated liabilities 7,793,527.16 7,793,527.16
Deferred earning 10,817,247.40 10,817,247.40
Deferred income tax
1,063,833,159.00 1,063,833,159.00
liabilities
Other non-current
liabilities
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Total of non-current
1,628,945,425.12 1,628,945,425.12
liabilities
Total liabilities 6,138,759,490.84 6,138,759,490.84
Owner’s equity:
Share capital 1,123,384,189.00 1,123,384,189.00
Other equity instruments
Including: preferred
stock
Perpetual
bond
Capital reserves 1,454,191.59 1,454,191.59
Less: Shares in stock
Other miscellaneous
-475,409.25 -475,409.25
income
Special reserves
Surplus reserve 159,805,930.34 159,805,930.34
Common risk provisions
Undistributed profit 3,898,626,177.99 3,898,626,177.99
Total of owner’s equity
5,182,795,079.67 5,182,795,079.67
belong to the parent company
Minor shareholders’
48,410,009.60 48,410,009.60
equity
Total of owners’ equity 5,231,205,089.27 5,231,205,089.27
Total of liabilities and
11,369,964,580.11 11,369,964,580.11
owner’s interest
Balance Sheet of the Parent Company
In RMB
Item 31 December 2019 1 January 2020 Adjustment
Current asset:
Monetary capital 175,591,953.63 175,591,953.63
Transactional financial
assets
Derivative financial
assets
Notes receivable
71
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Account receivable 297,813.76 297,813.76
Receivable financing
Prepayment 250,205.32 250,205.32
Other receivables 1,973,381,342.74 1,973,381,342.74
Including: interest
receivable
Dividend
receivable
Inventory
Contract assets
Assets held for sales
Non-current assets due
in 1 year
Other current assets 877,430.41 877,430.41
Total current assets 2,150,398,745.86 2,150,398,745.86
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term share equity
963,508,253.00 963,508,253.00
investment
Investment in other
18,604,010.22 18,604,010.22
equity tools
Other non-current
48,831,242.35 48,831,242.35
financial assets
Investment real estate 295,355,002.00 295,355,002.00
Fixed assets 67,361,529.52 67,361,529.52
Construction in process
Productive biological
assets
Gas & petrol
Use right assets
Intangible assets 1,824,589.22 1,824,589.22
R&D expense
Goodwill
Long-term amortizable 934,669.73 934,669.73
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
expenses
Deferred income tax
44,408,630.81 44,408,630.81
assets
Other non-current assets
Total of non-current assets 1,440,827,926.85 1,440,827,926.85
Total of assets 3,591,226,672.71 3,591,226,672.71
Current liabilities
Short-term loans 300,442,988.19 300,442,988.19
Transactional financial
liabilities
Derivative financial
liabilities
Notes payable
Account payable 606,941.85 606,941.85
Prepayment received 746,761.55 746,761.55
Contract liabilities
Employees' wage
3,215,013.16 3,215,013.16
payable
Taxes payable 312,647.89 312,647.89
Other payables 109,837,934.17 109,837,934.17
Including: interest
payable
Dividend
payable
Liabilities held for sales
Non-current liabilities
520,872,206.95 520,872,206.95
due in 1 year
Other current liabilities
Total current liabilities 936,034,493.76 936,034,493.76
Non-current liabilities:
Long-term loans 70,000,000.00 70,000,000.00
Bond payable
Including: preferred
stock
Perpetual
bond
73
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Lease liabilities
Long-term payable
Long-term employees’
wage payable
Anticipated liabilities
Deferred earning
Deferred income tax
64,351,075.92 64,351,075.92
liabilities
Other non-current
liabilities
Total of non-current
134,351,075.92 134,351,075.92
liabilities
Total liabilities 1,070,385,569.68 1,070,385,569.68
Owner’s equity:
Share capital 1,123,384,189.00 1,123,384,189.00
Other equity instruments
Including: preferred
stock
Perpetual
bond
Capital reserves 360,835.52 360,835.52
Less: Shares in stock
Other miscellaneous
1,287,629.38 1,287,629.38
income
Special reserves
Surplus reserve 159,805,930.34 159,805,930.34
Undistributed profit 1,236,002,518.79 1,236,002,518.79
Total of owners’ equity 2,520,841,103.03 2,520,841,103.03
Total of liabilities and
3,591,226,672.71 3,591,226,672.71
owner’s interest
About the adjustment
As of January 1, 2020, the Company has implemented new revenue guidelines, listed the assigned goods or services entitled to
receive consideration as contractual assets, and has been recognized as accounts receivable upon acquisition of unconditional
collection rights; The non-leased portion of the advances is included in the contractual liability and the tax portion is included in the
other current liabilities.
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
(4) Description of the 2020 first implementation of the new Income criteria, new lease standard
retrospective adjustment of the previous period comparison data
□ Applicable √ Inapplicable
VI. Taxation
1. Major taxes and tax rates
Tax Tax basis Tax rate
VAT Taxable income 3%, 5%, 6%, 9%, 13%
City maintenance and construction tax Taxable turnover 1%, 5%, 7%
Enterprise income tax Taxable income See the following table
Education surtax Taxable turnover 3%
Local education surtax Taxable turnover 2%
Tax rates applicable for different tax payers
Tax payer Income tax rate
The Company 25%
Shenzhen Fangda Jianke Co., Ltd. (hereinafter Fangda Jianke) 15% (for details see 6 2 (1))
Fangda Zhichuang Technology Co., Ltd, (Fangda Zhichuang) 15% (for details see 6 2 (2))
Fangda New Material (Jiangxi) Co., Ltd. (hereinafter Fangda
15% (for details see 6 2 (3))
New Material)
Dongguan Fangda New Material Co., Ltd. (hereinafter
15% (for details see 6 2 (4))
Dongguan New Material)
Chengdu Fangda Construction Technology Co., Ltd. (hereinafter
15% (for details see 6 2 (5))
Chengdu Fangda)
Shenzhen Fangda Property Development Co., Ltd. (hereinafter
25%
Fangda Property Development)
Shenzhen Fangda New Energy Co., Ltd. (hereinafter Fangda
25%
New Energy)
Shenzhen Fangda Property Development Co., Ltd. (hereinafter
25%
Fangda Property Development)
Jiangxi Fangda Property Development Co., Ltd. (hereinafter
25%
Jiangxi Property Development)
Pingxiang Fangda Luxin New Energy Co., Ltd. (hereinafter
25% (for details see 6 2 (6))
Luxin New Energy)
Nanchang Xinjian Fangda New Energy Co., Ltd. (hereinafter
25% (for details see 7 2 (6))
Xinjian New Energy)
75
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Dongguan Fangda New Energy Co., Ltd. (hereinafter Dongguan
25% (for details see 8 2 (6))
New Energy)
Shenzhen QIanhai Kechuangyuan Software Co., Lt.d (hereinafter
25% (for details see 9 2 (6))
Kechuangyuan Software)
Fangda Zhichuang Technology (Hong Kong) Co., Ltd,
16.50%
(Zhichuang Hong Kong)
Shihui International Holding Co., Ltd. (hereinafter Shihui
16.50%
International)
Shenzhen Hongjun Investment Co., Ltd. 25%
Fangda Australia Pty Ltd (hereinafter Jianke Australia) 30%
Shanghai Fangda Jingling Technology Co., Ltd. (hereinafter
25%
Jingling Technology)
Shenzhen Fangda Cloud Rail Technology Co., Ltd. (hereinafter
25%
Fangda Cloud Rail)
Shanghai Fangda Jianzhi Technology Co., Ltd. (hereinafter
25%
Shanghai Fangda Jianzhi)
Shenzhen Zhongrong Litai Investment Co. Ltd. (Zhongrong
25%
Litai)
Chengdu Fangda Curtain Wall Technology Co., Ltd. (hereinafter
25%
Chengdu Curtain Wall)
Fangda Southeast Asia Co., Ltd. (hereinafter Fangda Southeast
20%
Asia)
Fangda Jianke (Hong Kong) Co., Ltd. (hereinafter Jianke Hong
16.50%
Kong)
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, Fangda Jianke was
entitled to enjoy a tax preference of enterprise income tax of 15% for three years (2018-2017) 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 Zhichuang
was entitled to enjoy a tax preference of enterprise income tax of 15% for three years (2018-2017) 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 13.08.18, Fangda New Material was entitled to
enjoy a tax preference of enterprise income tax of 15% for three years (2018-2014) since the qualifications were awarded.
(4) 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 30.11.16, Dongguan New
Material was entitled to enjoy a tax preference of enterprise income tax of 15% for three years (2019-2018) since the qualifications
76
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
were awarded.
(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%.
On Monday, December 04, 2017, the subsidiary Chengdu Fangda Construction Technology Co., Ltd. obtained the “High-tech
Enterprise Certificate” jointly issued by Sichuan Science and Technology Department, Sichuan Provincial Department of Finance ,
Sichuan Provincial State Taxation Bureau and Sichuan Provincial Local Taxation Bureau, within three years after obtaining the
qualification of high-tech enterprises (2017 to 2019), the income tax is levied Resume at 15%.
(6) On 02.03.16, according to the document issued by Luxi National Tax Bureau, the PV power generation project undertaken
by Pingxiang Fangda Luxin New Energy Co., Ltd, became the infrastructure project supported by the central government. The
company enjoys a three-year enterprise income tax relief and 50% reduction for another three years. In 2016, the company entered
the exemption period. (7) 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.
(8) On November 2, 2015, 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.
(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.
VII. Notes to the consolidated financial statements
1. Monetary capital
In RMB
Item Closing balance Opening balance
Inventory cash: 9,534.72 4,244.86
Bank deposits 695,944,047.54 755,440,390.76
Other monetary capital 360,965,672.10 454,367,343.33
Total 1,056,919,254.36 1,209,811,978.95
Including: total amount deposited in
35,541,487.15 54,640,438.33
overseas
The total amount of money that
has restrictions on use due to mortgage, 444,757,864.32 484,542,076.05
pledge or freezing
Other note
(1) Restricted funds in monetary funds are 444,757,864.32 yuan; among them, restricted funds used in bank deposits are
91,330,153.91 yuan, which are labor insurance accounts, migrant workers' deposits, and litigation frozen funds, etc.; restricted funds
in other monetary funds are 353,427,710.41 yuan, mainly for draft deposits, interim guarantee deposits, guarantee deposits for
issuance of letters of guarantee, etc. In addition, there are no other funds in the monetary funds at the end of the period that have
77
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
restrictions on use and potential recovery risks due to mortgages, pledges or freezing.
② In the preparation of the cash flow statement, the above-mentioned deposits and other restricted deposits are not used as cash
and cash equivalents.
(3) At the end of the period, the total amount of funds deposited overseas by the Group was RMB 35,541,487.15, of which no
repatriation was restricted.
2. Transactional financial assets
In RMB
Item Closing balance Opening balance
Financial assets measured at fair value
with variations accounted into current 18,005,336.72 10,330,062.18
income account
Including: Investment of financial products 18,005,336.72 10,330,062.18
Total 18,005,336.72 10,330,062.18
3. Derivative financial assets
In RMB
Item Closing balance Opening balance
Futures hedging contract 1,760,150.00
Forward foreign exchange contract 55,526.34
Total 1,815,676.34
4. Notes receivable
(1) Classification of notes receivable
In RMB
Item Closing balance Opening balance
Bank acceptance 6,450,000.00 45,540,691.10
Commercial acceptance 158,076,921.14 259,530,239.87
Total 164,526,921.14 305,070,930.97
If the provision for bad debts of bills receivable is made in accordance with the general model of expected credit losses, please refer
to the disclosure of other receivables to disclose information about bad debts:
□ Applicable √ Inapplicable
(2) The Group has no endorsed or discounted immature receivable notes at the end of the period.
In RMB
Item De-recognized amount Not de-recognized amount
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Bank acceptance 12,540,000.00 4,650,000.00
Commercial acceptance 32,157,182.46
Total 12,540,000.00 36,807,182.46
(5) Account receivable
(1) Account receivable disclosed by categories
In RMB
Closing balance Opening balance
Remaining book Remaining book
Bad debt provision Bad debt provision
Type value Book value
Book value
Proportio Provision value Proportio Provision
Amount Amount Amount Amount
n rate n rate
Account receivable
for which bad debt 97,737,8 97,737,8 97,344,44 97,344,44
13.22% 100.00% 0.00 14.19% 100.00% 0.00
provision is made by 98.97 98.97 0.13 0.13
group
Including:
55,266,6 55,266,6 54,873,22 54,873,22
1. Customer 1 7.47% 100.00% 0.00 8.00% 100.00% 0.00
82.05 82.05 3.21 3.21
21,739,3 21,739,3 21,739,38 21,739,38
2. Customer 2 2.94% 100.00% 0.00 3.17% 100.00% 0.00
81.96 81.96 1.96 1.96
13,461,8 13,461,8 13,461,83 13,461,83
3. Customer 3 1.82% 100.00% 0.00 1.96% 100.00% 0.00
34.96 34.96 4.96 4.96
7,270,00 7,270,00 7,270,000 7,270,000
4. Customer 4 0.98% 100.00% 0.00 1.06% 100.00% 0.00
0.00 0.00 .00 .00
Account receivable
for which bad debt 641,663, 77,245,5 564,418,0 588,639,3 102,526,1 486,113,22
86.78% 12.04% 85.81% 17.42%
provision is made by 604.40 85.81 18.59 29.05 07.53 1.52
group
Including:
Portfolio 1:
324,936, 49,004,5 275,931,9 440,597,1 91,306,21 349,290,91
Engineering 43.95% 15.08% 64.23% 20.72%
566.69 72.37 94.32 27.89 5.77 2.12
operations section
Portfolio 2: Real
236,737, 25,876,8 210,860,5 78,982,27 8,857,718 70,124,555.
estate business 32.02% 10.93% 11.51% 11.21%
347.31 01.02 46.29 4.43 .82 61
payments
Combination 3: 79,989,6 10.82% 2,364,21 2.96% 77,625,47 69,059,92 10.07% 2,362,172 3.42% 66,697,753.
79
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Other business 90.40 2.42 7.98 6.73 .94 79
models
739,401, 174,983, 564,418,0 685,983,7 199,870,5 486,113,22
Total 100.00% 11.54% 100.00% 29.14%
503.37 484.78 18.59 69.18 47.66 1.52
Separate bad debt provision:
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate Reason
Customer credit status
Customer 1 55,266,682.05 55,266,682.05 100.00% deteriorates and is not
expected to be recovered
Customer credit status
Customer 2 21,739,381.96 21,739,381.96 100.00% deteriorates and is not
expected to be recovered
Customer credit status
Customer 3 13,461,834.96 13,461,834.96 100.00% deteriorates and is not
expected to be recovered
Customer credit status
Customer 4 7,270,000.00 7,270,000.00 100.00% deteriorates and is not
expected to be recovered
Total 97,737,898.97 97,737,898.97 -- --
Provision for bad debts by combination:
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Portfolio 1: Engineering operations section
Less than 1 year 173,588,505.64 3,404,132.87 1.96%
1-2 years 55,099,062.50 3,120,864.88 5.66%
2-3 years 36,449,159.27 4,649,273.54 12.76%
3-4 years 18,728,872.46 3,700,936.93 19.76%
4-5 years 12,212,812.57 5,271,209.90 43.16%
Over 5 years 28,858,154.25 28,858,154.25 100.00%
Subtotal 324,936,566.69 49,004,572.37 15.08%
Portfolio 2: Real estate business payments
Less than 1 year 51,772,537.76 517,725.38 1.00%
1-2 years 23,856,457.95 1,192,822.90 5.00%
2-3 years 0.00 0.00 5.00%
80
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
3-4 years 161,108,351.60 24,166,252.74 15.00%
Subtotal 236,737,347.31 25,876,801.02 10.93%
Combination 3: Other business models
Less than 1 year 40,149,012.88 293,169.26 0.73%
1-2 years 29,134,316.13 612,198.92 2.10%
2-3 years 9,184,137.16 773,414.30 8.42%
3-4 years 1,112,151.28 275,591.09 24.78%
4-5 years 1,730.26 1,496.16 86.47%
Over 5 years 408,342.69 408,342.69 100.00%
Subtotal 79,989,690.40 2,364,212.42 2.96%
Total 641,663,604.40 77,245,585.81 --
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, please
refer to the disclosure of other receivables to disclose information about bad debts:
□ Applicable √ Inapplicable
Account age
In RMB
Age Closing balance
Within 1 year (inclusive) 266,062,907.35
1-2 years 111,391,117.14
2-3 years 57,083,311.33
Over 3 years 304,864,167.55
3-4 years 190,503,409.57
4-5 years 37,247,531.59
Over 5 years 77,113,226.39
Total 739,401,503.37
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.6 – Listed Companies Engaged in Decoration Business.
Bad debt provision
Balance of accounts Whether there is a
Customer corresponding to accounts Reason of the age
receivable of over 3 years risk of recovery
receivable
Customer credit status
Customer 1 53,281,747.13 53,281,747.13 Yes
deteriorates
Customer credit status
Customer 2 13,461,834.96 13,461,834.96 Yes
deteriorates
Customer credit status
Customer 3 17,374,148.42 17,033,021.55 Yes
deteriorates
Total 84,117,730.51 83,776,603.63
81
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
(2) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Type Opening balance Written-back or Closing balance
Provision Canceled Others
recovered
Portfolio 1:
Engineering 188,650,655.90 41,908,184.55 146,742,471.35
operations section
Portfolio 2: Real
estate business 8,857,718.82 17,019,082.20 25,876,801.02
payments
Combination 3:
Other business 2,362,172.94 2,039.48 2,364,212.42
models
Total 199,870,547.66 17,021,121.68 41,908,184.55 174,983,484.79
The reversal of the provision for bad debts of construction business accounts in this period was mainly due to the change in the
expected credit loss rate of accounts receivable in this period.
(3) Balance of top 5 accounts receivable at the end of the period
In RMB
Closing balance of accounts Balance of bad debt provision at
Entity Percentage (%)
receivable the end of the period
Customer 1 159,590,068.80 21.58% 21,711,203.32
Customer 2 55,266,682.05 7.47% 55,266,682.05
Customer 3 23,791,352.80 3.22% 3,568,702.92
Customer 4 23,252,449.78 3.14% 456,000.52
Customer 5 22,475,765.58 3.04% 1,916,810.97
Total 284,376,319.01 38.45%
(4) Receivables derecognized due to transfer of financial assets
Item Transfer method of financial De-recognized amount Gain or loss related to the de-recognition
assets
Customer 1 Factoring 3,368,921.78 -202,198.85
Customer 2 Factoring 490,899.13 -19,989.14
82
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Customer 3 Factoring 4,819,475.00 -190,919.60
Customer 4 Factoring 10,592,527.22 -440,331.67
Customer 5 Factoring 5,130,984.12 -245,014.66
Customer 6 Factoring 1,231,561.03 -63,617.65
Customer 7 Factoring 8,289,670.58 -404,847.23
Total 33,924,038.86 -1,566,918.80
Note: In the current period, the company handled the factoring of accounts receivable without recourse, and the factoring amo unt was
RMB 33,924,038.86. At the same time, the book ba lance of accounts receivable was derecognized at RMB 33,924,038.86.
6. Receivable financing
In RMB
Item Closing balance Opening balance
Notes receivable 300,000.00 2,954,029.00
Total 300,000.00 2,954,029.00
Increase or decrease in the current period of receivables financing and changes in fair value
□ Applicable √ Inapplicable
If the provision for financing impairment of receivables is accrued in accordance with the general expected credit loss model, please
refer to the disclosure of other receivables to disclose the relevant information of the impairment provision:
□ Applicable √ Inapplicable
7. Prepayment
(1) Account age of prepayments
In RMB
Closing balance Opening balance
Age
Amount Proportion Amount Proportion
Less than 1 year 23,861,139.29 68.33% 14,025,617.54 65.77%
1-2 years 7,902,770.87 22.63% 5,895,327.15 27.64%
2-3 years 543,969.67 1.56% 473,487.72 2.22%
Over 3 years 2,611,509.00 7.48% 932,676.77 4.37%
Total 34,919,388.83 -- 21,327,109.18 --
Explanation of non-settlement of significant prepayments with an accounting age of more than 1 year:
Entity Closing balance of book Age Reason
value
Guangdong Xingfa Aluminium Co., Ltd. 6,244,661.31 1-2 years Not mature
83
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
(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 RMB15,219,611.63, accounting for 43.58% of the total
prepayments at the end of the period.
8. Other receivables
In RMB
Item Closing balance Opening balance
Other receivables 158,674,891.12 139,947,655.35
Total 158,674,891.12 139,947,655.35
(1) Other receivables
1) Other receivables are disclosed by nature
In RMB
By nature Closing balance of book value Opening balance of book value
Deposit 116,035,799.08 103,782,569.80
Construction borrowing and advanced
32,408,043.13 34,052,644.05
payment
Staff borrowing and petty cash 2,009,402.33 1,717,094.83
Receivable refund of VAT 2,124,028.86 548,129.42
Debt by Luo Huichi 12,992,291.48 12,992,291.48
Others 19,411,431.41 12,502,878.08
Total 184,980,996.29 165,595,607.66
2) Method of bad debt provision
In RMB
First stage Second stage Third stage
Expected credit Expected credit loss for the Expected credit loss for the
Bad debt provision Total
losses in the next 12 entire duration (no credit entire duration (credit
months impairment) impairment has occurred)
Balance on Wednesday,
2,113,622.44 6,415.10 23,527,914.77 25,647,952.31
January 01, 2020
Balance on January 01,
2020 in the current —— —— —— ——
period
84
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
-- transferred to the third
-150.00 150.00
stage
Provision 570,976.94 3,466.09 337,040.41 911,483.44
Transferred back in the
67,206.05 174.00 185,950.53 253,330.58
current period
Balance on June 30, 2020 2,617,393.33 9,707.19 23,679,004.65 26,306,105.17
Changes in book balances with significant changes in the current period
□ Applicable √ Inapplicable
Account age
In RMB
Age Closing balance
Within 1 year (inclusive) 54,570,812.26
1-2 years 81,932,549.03
2-3 years 23,957,588.91
Over 3 years 24,520,046.09
3-4 years 3,569,009.30
4-5 years 17,047,699.71
Over 5 years 3,903,337.08
Total 184,980,996.29
3) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Type Opening balance Written-back or Closing balance
Provision Canceled Others
recovered
Other receivables
and bad debt 25,647,952.31 911,483.44 253,330.58 26,306,105.17
provision
Total 25,647,952.31 911,483.44 253,330.58 26,306,105.17
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
85
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Shenzhen Yikang Deposit/advancemen
70,062,675.83 1-2 years 37.88% 1,043,933.87
Real Estate Co. Ltd. t of service fee
Bangshen
Electronics Deposit 20,000,000.00 2-3 years 10.81% 298,000.00
(Shenzhen) Co., Ltd.
Luo Huichi Debt by SOZN 12,992,291.48 4-5 years 7.02% 12,992,291.48
China Merchants
Futures Brokerage Futures margin 11,695,766.00 Less than 1 year 6.32% 174,266.91
Co., Ltd.
Shenzhen Henggang
Deposit 8,044,000.00 1-2 years 4.35% 119,855.60
Dakang Co., Ltd.
Total -- 122,794,733.31 -- 66.38% 14,628,347.86
5) Items involving government subsidies:
In RMB
Estimated time, amount
Entity Governmental subsidy Closing balance Closing age
and basis of receipt
It can be recovered in
time after receiving the
Shenzhen Qianhai
VAT rebated 2,124,028.86 Less than 1 year tax refund (fee) approval
Taxation Bureau
notice from the tax
bureau
9. Inventories
Whether the Company needs to comply with disclosure requirements of the real estate industry.
Yes
(1) Classification of inventories
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.3 – Listed Companies Engaged in Property Development.
Classified by nature:
In RMB
Closing balance Opening balance
Provision for Provision for
inventory inventory
Item Remaining book Remaining book
depreciation or Book value depreciation or Book value
value value
contract contract
performance cost performance cost
86
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
impairment impairment
provision provision
Development cost 403,739,412.35 403,739,412.35 365,194,941.67 365,194,941.67
Development
99,770,918.78 99,770,918.78 99,770,918.78 99,770,918.78
products
Raw materials 89,660,697.09 563,013.42 89,097,683.67 68,623,793.04 563,013.42 68,060,779.62
Product in
51,477,301.56 51,477,301.56 59,444,230.45 59,444,230.45
process
Finished goods in
8,019,940.64 8,019,940.64 7,500,273.11 7,500,273.11
stock
Assets unsettled
for finished
127,147,139.99 1,430,361.92 125,716,778.07 133,002,090.91 1,430,361.92 131,571,728.99
construction
contracts
Low price
44,694.66 44,694.66 146,018.01 146,018.01
consumable
OEM materials 2,036,765.73 2,036,765.73 2,022,252.83 2,022,252.83
Total 781,896,870.80 1,993,375.34 779,903,495.46 735,704,518.80 1,993,375.34 733,711,143.46
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 Bank loan
12
Phoenix 1 May 670,000,0 197,466,2 4,508,952 201,975,2 5,495,748 2,697,619 and
December
Land 2018 00.00 78.49 .10 30.59 .30 .95 self-owne
2020
project d fund
Dakang Bank loan
1 31
Village 3,600,000 166,868,4 30,384,07 197,252,5 and
December December
Project in ,000.00 79.94 9.93 59.87 self-owne
2023 2029
Shenzhen d fund
Fangda Bank loan
1 31
Bangshen 870,000,0 860,183.2 3,651,438 4,511,621 and
December December
Industry 00.00 4 .65 .89 self-owne
2020 2022
Park d fund
87
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
5,140,000 365,194,9 38,544,47 403,739,4 5,495,748 2,697,619
Total -- -- --
,000.00 41.67 0.68 12.35 .30 .95
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 29
Fangda December 99,770,918.78 99,770,918.78 69,129,130.15 0.00
Town 2016
Total -- 99,770,918.78 99,770,918.78 69,129,130.15 0.00
(2) Provision for inventory depreciation and contract performance cost impairment provision
The inventory depreciation provision is disclosed as follows:
Classified by nature:
In RMB
Increase in this period Decrease in this period
Opening Closing
Item Recover or Remarks
balance Provision Others Others balance
write-off
Raw materials 563,013.42 563,013.42
Assets unsettled
for finished 1,430,361.
1,430,361.92
construction 92
contracts
1,993,375.
Total 1,993,375.34 --
34
(3) Capitalization rate of interest in the closing inventory balance
As at 30 June 2020, the amount of the capitalization of borrowing costs in the balance of the end-of-period inventory was
RMB9,809,938.39.
(4) Restriction of inventory
Restricted inventory is disclosed by project
In RMB
Project Opening balance Closing balance Reason
88
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Jiangxi Phoenix Land project 99,936,207.50 99,936,207.50 Loan by pledge
Total 99,936,207.50 99,936,207.50 --
10. Contract assets
In RMB
Closing balance Opening balance
Item Remaining Impairment Remaining Impairment
Book value Book value
book value provision book value provision
Engineering operation 1,856,679,366. 1,659,323,267. 1,476,897,495.
197,356,098.59 230,109,023.56 1,246,788,471.78
portfolio 07 48 34
Real estate portfolio 183,381,421.60 17,224,488.66 166,156,932.94
Other business portfolio 40,591,306.96 757,229.44 39,834,077.52 58,537,050.01 1,404,369.18 57,132,680.83
1,897,270,673. 1,699,157,345. 1,718,815,966.
Total 198,113,328.03 248,737,881.40 1,470,078,085.55
03 00 95
The amount and reasons for major changes in the book value of contract assets during the current period:
In RMB
Item Change Reason
Engineering operation Mainly due to the realization of sales and confirmation of contract
412,534,795.70
portfolio assets according to contract performance
Mainly because the real estate certificate of Fangda Town No. 3
Real estate portfolio -166,156,932.94 Building has been completed, and the contract payment conditions
have been met and converted into accounts receivable
Mainly due to the conversion to accounts receivable after meeting
Other business portfolio -17,298,603.31
the contract collection conditions
Total 229,079,259.45 ——
If the provision for bad debts of contract assets is made in accordance with the general model of expected credit losses, ple ase refer to
the disclosure of other receivables to disclose information about bad debts:
□ Applicable √ Inapplicable
Provision made for bad debts of contract assets in this period
In RMB
Transferred back in the Written off in the current
Item Provision Reason
current period period
Mainly due to changes in
Engineering operation the expected credit loss
32,752,924.97
portfolio rate of contract assets in
the current period
Real estate portfolio 17,224,488.66 Mainly due to the
89
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
conversion to accounts
receivable after meeting
the contract collection
conditions
Other business portfolio 647,139.74
Total 50,624,553.37 --
11. Other current assets
In RMB
Item Closing balance Opening balance
Tax to be input 33,667,829.72 25,724,810.99
Prepaid income tax 12,079,853.70 10,942,500.38
Structural loan 201,790,136.99 207,993,374.07
Reclassification of VAT debit balance 82,046,512.69 79,104,900.46
Others 165,020.00
Total 329,749,353.10 323,765,585.90
12. Long-term share equity investment
In RMB
Change (+,-) Balance
Investme of
Other
nt gain Cash impairme
Opening Decrease miscellan Closing
Invested Increased and loss Other dividend Impairme nt
book d eous book
entity investmen recognize equity or profit nt Others provision
value investmen income value
t d using change announce provision at the end
t adjustmen
the equity d of the
t
method period
1. Joint venture
2. Associate
Shenzhen
Ganshang
Joint
Investme
2,360,044 2,363,115
nt Co., 3,071.91
.01 .92
Ltd.
(Shenzhe
n
Ganshang
90
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
)
Jiangxi
Business
Innovativ
e 54,862,19 -378,274. 54,483,92
Property 6.82 00 2.82
Joint
Stock
Co., Ltd.
57,222,24 -375,202. 56,847,03
Subtotal
0.83 09 8.74
57,222,24 -375,202. 56,847,03
Total
0.83 09 8.74
13. Investment in other equity tools
In RMB
Item Closing balance Opening balance
Unlisted equity instrument investment 20,140,037.85 20,660,181.44
Total 20,140,037.85 20,660,181.44
Sub-disclosure of non-tradable equity instrument investment in the current period
In RMB
Reason for
Amount of other measurement at
Reason for
Dividend comprehensive fair value with
transfer of other
Project recognized in the Total gain Total loss income variations
miscellaneous
period transferred to accounted into
into income
retained earnings current income
account
Non-trading
Shenyang Fangda 9,958,565.45 equity
instruments
Shenzhen Huihai Non-trading
Yirong Internet 2,941,535.45 equity
Service Co., Ltd. instruments
14. Other non-current financial assets
In RMB
Item Closing balance Opening balance
91
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Financial assets measured at fair value
with variations accounted into current 5,018,835.30 5,009,728.02
income account
Total 5,018,835.30 5,009,728.02
IX. 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 29,047,361.20 194,300,196.90 223,347,558.10
2. Increase in this period 5,002,352.86 5,002,352.86
(1) External purchase 5,002,352.86 5,002,352.86
3. Decrease in this period 18,636,669.33 18,636,669.33
(1) Disposal
(2) Other transfer-out 18,636,669.33 18,636,669.33
4. Closing balance 10,410,691.87 199,302,549.76 209,713,241.63
II. Accumulative
depreciation and
amortization
1. Opening balance 7,071,934.11 7,071,934.11
2. Increase in this period 134,565.12 134,565.12
(1) Provision or
134,565.12 134,565.12
amortization
3. Decrease in this period 3,287,340.60 3,287,340.60
(1) Disposal
(2) Other transfer-out 3,287,340.60 3,287,340.60
4. Closing balance 3,919,158.63 3,919,158.63
III. Impairment provision
1. Opening balance 0.00 0.00 0.00
2. Increase in this period 0.00 0.00 0.00
3. Decrease in this period 0.00 0.00 0.00
4. Closing balance 0.00 0.00 0.00
IV. Book value
92
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
1. Closing book value 6,491,533.24 199,302,549.76 205,794,083.00
2. Opening book value 21,975,427.09 194,300,196.90 216,275,623.99
Note: The other transfer of RMB 18,636,669.33 was due to the needs of business development and the transfer of part of the
industrial plant of the subsidiary Zhichuang Technology Company from external lease to self-use.
(2) Investment real estate measured at fair value
√ Applicable □ Inapplicable
In RMB
Item Houses & buildings Land using right Construction in process Total
I. Opening balance 5,306,116,360.12 5,306,116,360.12
II. Change in this period 5,919,471.95 5,919,471.95
Add: external purchase 5,919,471.95 5,919,471.95
Less: disposal
Change in fair value
III. Closing balance 5,312,035,832.07 5,312,035,832.07
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.3 – Listed Companies Engaged in Property Development.
Disclosure of investment real estate measured at fair value by projects
In RMB
Rental
Completio Building income in Opening Closing fair Change in Reason for the
Project Location
n time area the report fair value value fair value change and report
period
11
Commercial podium 13,749,07 1,290,742, 1,290,742,024.
Shenzhen October 22,565.42
of Fangda Town 4.50 024.00 00
2017
New decoration
29
Building 1# of Fangda 21,557,76 3,720,019, 3,725,938,806. and other
Shenzhen December 72,517.71 0.16%
Town 3.27 334.12 07 investment in this
2018
period
28
7,971,681. 295,355,0
Fangda Building Shenzhen December 17,792.47 295,355,002.00
38 02.00
2002
112,875.6 43,278,51 5,306,116, 5,312,035,832.
Total —— —— 0.11% ——
0 9.15 360.12 07
Whether the company has investment real estate in the current construction period
√ Yes □ No
93
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
The investment real estate in the construction period of the current period:
In RMB
Date of Estimated total Estimated finish
Project Location Opening amount Closing amount
commencement investment time
Jiangxi Phoenix 12 December
Nanchang 1 May 2018 670,000,000.00 194,300,196.90 199,302,549.76
Land project 2020
Total —— —— 670,000,000.00 194,300,196.90 199,302,549.76 ——
Whether there is new investment real estate measured at fair value in the report period
□ Yes √ No
(3) Investment real estate without ownership certificate
In RMB
Item Book value Reason
Conditions for applying for property right
Jiangxi Phoenix Land project 199,302,549.76
are not met
16. Fixed assets
In RMB
Item Closing balance Opening balance
Fixed assets 484,397,283.68 477,332,830.92
Total 484,397,283.68 477,332,830.92
(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
397,489,124.24 129,679,176.79 21,359,342.69 44,608,708.34 129,596,434.84 722,732,786.90
balance
2. Increase in
18,636,669.33 2,843,131.80 21,792.06 819,189.17 22,320,782.36
this period
(1) Purchase 2,843,131.80 21,792.06 808,175.98 3,673,099.84
(2)
Transfer-in of
construction in
94
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
progress
(3) Other
18,636,669.33 11,013.19 18,647,682.52
increases
3. Decrease in
25,794.13 572,649.58 7,753.85 318,155.65 924,353.21
this period
(1) Disposal
572,649.58 7,753.85 318,155.65 898,559.08
or retirement
(2) Other
25,794.13 25,794.13
decrease
4. Closing
416,099,999.44 131,949,659.01 21,373,380.90 45,109,741.86 129,596,434.84 744,129,216.05
balance
II. Accumulative
depreciation
1. Opening
75,577,918.79 102,194,972.59 15,634,519.78 28,429,239.34 22,208,915.98 244,045,566.48
balance
2. Increase in
8,800,315.87 1,936,391.79 299,694.60 965,824.25 3,074,220.06 15,076,446.57
this period
(1) Provision 5,521,975.27 1,936,391.79 299,694.60 965,824.25 3,074,220.06 11,798,105.97
(2) Other
3,278,340.60 3,278,340.60
increases
3. Decrease in
462,977.80 6,978.46 274,513.92 744,470.18
this period
(1) Disposal
462,977.80 6,978.46 274,513.92 744,470.18
or retirement
4. Closing
84,378,234.66 103,668,386.58 15,927,235.92 29,120,549.67 25,283,136.04 258,377,542.87
balance
III. Impairment
provision
1. Opening
1,297,621.81 56,767.69 1,354,389.50
balance
2. Increase in
this period
3. Decrease in
this period
4. Closing
1,297,621.81 56,767.69 1,354,389.50
balance
IV. Book value
1. Closing 331,721,764.78 26,983,650.62 5,446,144.98 15,932,424.50 104,313,298.80 484,397,283.68
95
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
book value
2. Opening
321,911,205.45 26,186,582.39 5,724,822.91 16,122,701.31 107,387,518.86 477,332,830.92
book value
(2) Fixed assets without ownership certificate
In RMB
Item Book value Reason
Houses in Urumuqi for offsetting debt 504,584.19 Historical reasons
Yuehai Office Building C 502 127,598.25 Historical reasons
Construction of Chengdu Fangda Xinjin In the process of applying for property
26,033,117.71
Base right certificate
17. Construction in process
In RMB
Item Closing balance Opening balance
Construction in process 138,881,024.27 129,988,982.86
Total 138,881,024.27 129,988,982.86
(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
Construction and
decoration of
self-use part of 54,741,274.27 54,741,274.27 54,275,503.95 54,275,503.95
Building 1 of
Fangda Town
Fangda Group
East China
82,806,788.86 82,806,788.86 75,473,740.65 75,473,740.65
Construction
Base Project
System of
intelligent gluing 23,242.53 23,242.53 23,242.53 23,242.53
robot
96
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Standard
288,563.73 288,563.73 216,495.73 216,495.73
production line
Fangda Hope
714,521.85 714,521.85
Primary School
Xuanfeng power
station power
safety monitoring
system and
117,000.00 117,000.00
renewable energy
big data platform
access system
project
Xinjin plant gas
system
189,633.03 189,633.03
installation
project
Total 138,881,024.27 138,881,024.27 129,988,982.86 129,988,982.86
(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
Construc
tion and
decoratio
n of
self-use 74,270,0 54,275,5 465,770. 54,741,2 3,253,13 Self-own
79.39% 79.39%
part of 00.00 03.95 32 74.27 6.04 ed fund
Building
1 of
Fangda
Town
Fangda 102,586, 75,473,7 7,333,04 82,806,7 14,499,8 1,111,99 Own
80.72% 80.72% 5.46%
Group 625.00 40.65 8.21 88.86 31.54 0.87 funds
97
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
East and
China loans
Construc from
tion Base financial
Project institutio
ns
176,856, 129,749, 7,798,81 137,548, 17,752,9 1,111,99
Total -- -- 5.46% --
625.00 244.60 8.53 063.13 67.58 0.87
18. Intangible assets
(1) Intangible assets
In RMB
Item Land using right Patent Software Total
I. Book value
1. Opening
78,751,482.29 8,966,866.05 17,892,864.49 105,611,212.83
balance
2. Increase in
13,000.00 43,439.82 56,439.82
this period
(1) Purchase 13,000.00 43,439.82 56,439.82
3. Decrease in this
period
(1) Disposal
4. Closing
78,751,482.29 8,979,866.05 17,936,304.31 105,667,652.65
balance
II. Accumulative
amortization
1. Opening
12,802,236.28 8,028,555.36 6,458,156.14 27,288,947.78
balance
2. Increase in
1,131,134.80 234,613.29 751,883.48 2,117,631.57
this period
(1) Provision 1,131,134.80 234,613.29 751,883.48 2,117,631.57
3. Decrease in
this period
4. Closing
13,933,371.08 8,263,168.65 7,210,039.62 29,406,579.35
balance
III. Impairment
provision
98
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
1. Opening
balance
2. Increase in
this period
3. Decrease in
this period
4. Closing
balance
IV. Book value
1. Closing book
64,818,111.21 716,697.40 10,726,264.69 76,261,073.30
value
2. Opening
65,949,246.01 938,310.69 11,434,708.35 78,322,265.05
book value
Intangible asset formed by internal R&D of the period takes up 11.60% in the closing total book value of intangible assets.
19. Long-term amortizable expenses
In RMB
Increase in this Amortized amount
Item Opening balance Other decrease Closing balance
period in this period
Xuanfeng Chayuan
village and Zhuyuan
1,140,730.22 28,050.78 1,112,679.44
village land transfer
compensation
Reconstruction
project of sample 462,854.58 57,856.80 404,997.78
room
Membership fee 637,499.92 6,250.00 115,000.02 528,749.90
Waterproofing works
for employee 460,084.29 49,294.74 410,789.55
dormitories
Management
consulting service 901,552.04 238,121.77 663,430.27
fee
Warehouse addition
and renovation 272,477.07 30,275.22 242,201.85
project
Addition and
541,284.40 90,214.08 451,070.32
renovation project of
99
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
glue area
Others 149,512.81 581.32 148,931.49
Total 3,875,198.12 697,047.21 609,394.73 3,962,850.60
20. 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
93,590,747.27 23,063,418.45 93,590,747.27 23,063,418.45
provision
Deductible loss 281,570,405.26 68,828,235.41 271,310,599.01 67,626,700.92
Unrealizable gross profit 121,664,373.75 29,786,127.24 119,543,729.80 29,233,320.47
Credit impairment
399,313,861.39 64,051,091.44 473,809,506.79 75,229,494.57
provision
Provided unpaid taxes 583,427,563.55 145,856,890.89 584,599,356.81 146,149,839.20
Anticipated liabilities 4,426,285.92 663,942.89 7,793,527.16 1,169,029.07
Donation 1,700,000.00 425,000.00 700,000.00 175,000.00
Reserved expense 1,742,978.53 261,446.78
Deferred earning 2,449,739.03 363,028.88 2,346,742.62 347,579.43
Others 413,650.31 93,735.81
Total 1,488,142,976.17 333,037,735.20 1,555,850,838.30 343,349,564.70
(2) Non-deducted deferred income tax liabilities
In RMB
Closing balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
Change in fair value 4,102,516,372.60 1,025,447,525.51 4,101,290,434.14 1,025,322,608.53
Estimated gross margin
when Fangda Town
records income, but does 108,771,380.35 27,192,845.09 132,104,998.74 33,026,249.69
not reach the taxable
income level
100
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Acquire premium to form
1,535,605.48 383,901.37 1,535,605.47 383,901.37
inventory
Rental income 25,774,151.06 6,443,537.78 20,401,597.60 5,100,399.41
Total 4,238,597,509.49 1,059,467,809.75 4,255,332,635.95 1,063,833,159.00
(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
333,037,735.20 343,349,564.70
assets
Deferred income tax
1,059,467,809.75 1,063,833,159.00
liabilities
(4) Details of unrecognized deferred income tax assets
In RMB
Item Closing balance Opening balance
Deductible temporary difference 89,056.59 446,874.58
Deductible loss 7,087,089.46 8,983,744.38
Total 7,176,146.05 9,430,618.96
(5) Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Closing amount Opening amount Remarks
2020 30,257.35 30,257.35
2021 0.00 0.00
2022 1,270,623.72 2,286,265.51
2023 4,575,983.46 5,390,985.76
2024 798,893.17 1,276,235.76
2025 411,331.76
Total 7,087,089.46 8,983,744.38 --
101
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
21. Other non-current assets
In RMB
Closing balance Opening balance
Item Remaining Impairment Remaining Impairment
Book value Book value
book value provision book value provision
37,015,653.0 37,015,653.0 28,446,802.0 28,446,802.0
Prepaid house and equipment amount
0 0 0 0
Prepaid engineering amount 255,000.00 255,000.00
37,015,653.0 37,015,653.0 28,701,802.0 28,701,802.0
Total
0 0 0 0
22. Short-term borrowings
(1) Classification of short-term borrowings
In RMB
Item Closing balance Opening balance
Loan by pledge 30,008,266.67 200,318,605.55
Guarantee loan 418,726,349.99 216,287,991.79
Credit borrow 300,091,250.00 8,011,600.00
The Group's internal acceptance bills
531,809,800.00 300,000,000.00
discounted borrowings
Total 1,280,635,666.66 724,618,197.34
23. Derivative financial liabilities
In RMB
Item Closing balance Opening balance
Forward foreign exchange contract 96,767.62
Total 96,767.62
24. Notes payable
In RMB
Type Closing balance Opening balance
Commercial acceptance 154,105,118.94 129,241,328.76
Bank acceptance 377,373,250.29 449,574,698.68
102
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Total 531,478,369.23 578,816,027.44
The total amount of payable bills that have matured but not been paid at the end of the period is RMB0.00.
25. Account payable
(1) Account payable
In RMB
Item Closing balance Opening balance
Account repayable and engineering
830,540,797.17 811,680,369.67
repayable
Construction payable 22,175,837.84 75,375,776.11
Payable installation and implementation
249,475,834.32 297,516,473.34
fees
Others 4,404,991.26 6,200,681.12
Total 1,106,597,460.59 1,190,773,300.24
(2) Significant payables aging more than 1 year
In RMB
Item Closing balance Reason
Supplier 1 47,481,709.04 Not mature
Supplier 2 17,655,833.07 Not mature
Supplier 3 11,011,440.33 Not mature
Supplier 4 7,381,161.50 Not mature
Supplier 5 5,788,761.88 Not mature
Total 89,318,905.82 --
26. Prepayment received
(1) Prepayment received
In RMB
Item Closing balance Opening balance
Real estate lease payments received in
4,195,179.31 1,332,457.45
advance
Total 4,195,179.31 1,332,457.45
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.3 – Listed Companies Engaged in Property Development.
103
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Payment received from top 5 presales projects:
In RMB
No. Project Opening balance Closing balance Estimated finish time Presales percentage
Jiangxi Phoenix
1. 677,650.00 22,842,092.00 December 2020 5.07%
Land project
Note: The ending balance of the above-mentioned advance receipts of RMB22,842,092.00 shall be listed in contract liabilities and
other current liabilities according to the new income standard.
27. Contract liabilities
In RMB
Item Closing balance Opening balance
Engineering business 110,649,396.36 120,396,559.54
Real estate 25,134,270.22 2,831,768.42
Other businesses 1,015,798.18 752,948.55
Total 136,799,464.76 123,981,276.51
The amount and reason for the significant change in the book value during the reporting period
In RMB
Item Change Reason
Engineering business -9,747,163.18 Mainly due to the performance of the contract in the current period
Mainly due to the funds obtained from the pre-sale of real estate in
Real estate 22,302,501.80
the current period
Other businesses 262,849.63
Total 12,818,188.25 ——
28. Employees’ wage payable
(1) Employees’ wage payable
In RMB
Item Opening balance Increase Decrease Closing balance
1. Short-term
55,534,644.34 134,819,463.16 165,836,253.15 24,517,854.35
remuneration
2. Retirement pension
program-defined 25,334.86 2,258,671.22 2,208,392.42 75,613.66
contribution plan
3. Dismiss compensation 287,155.00 560,450.00 847,605.00
Total 55,847,134.20 137,638,584.38 168,892,250.57 24,593,468.01
104
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
(2) Short-term remuneration
In RMB
Item Opening balance Increase Decrease Closing balance
1. Wage, bonus,
54,054,805.08 126,366,654.32 157,659,945.37 22,761,514.03
allowance and subsidies
2. Employee welfare 2,664,209.05 2,622,798.55 41,410.50
3. Social insurance 8,812.80 2,002,672.02 1,867,944.09 143,540.73
Including: medical
8,812.80 1,601,468.63 1,508,469.10 101,812.33
insurance
Labor injury
151,104.28 150,107.05 997.23
insurance
Breeding
250,099.11 209,367.94 40,731.17
insurance
4. Housing fund 45,924.00 3,185,590.39 3,151,600.39 79,914.00
5. Labor union budget
1,425,102.46 600,337.38 533,964.75 1,491,475.09
and staff education fund
Total 55,534,644.34 134,819,463.16 165,836,253.15 24,517,854.35
(3) Defined contribution plan
In RMB
Item Opening balance Increase Decrease Closing balance
1. Basic pension 25,334.86 2,190,347.33 2,141,731.97 73,950.22
2. Unemployment
68,323.89 66,660.45 1,663.44
insurance
Total 25,334.86 2,258,671.22 2,208,392.42 75,613.66
29. Taxes payable
In RMB
Item Closing balance Opening balance
VAT 4,703,096.74 5,138,273.83
Enterprise income tax 11,103,995.91 8,013,627.51
Personal income tax 805,124.13 1,111,213.06
City maintenance and construction tax 1,044,730.49 1,499,926.15
Land using tax 412,829.44 241,855.73
Property tax 1,606,236.85 265,016.74
105
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Education surtax 532,106.52 736,138.35
Local education surtax 216,369.67 352,390.86
Land VAT 31,084.86
Others 862,911.01 459,460.59
Total 21,287,400.76 17,848,987.68
30. Other payables
In RMB
Item Closing balance Opening balance
Other payables 712,243,884.21 701,432,408.28
Total 712,243,884.21 701,432,408.28
(1) Other payables
1) Other payables presented by nature
In RMB
Item Closing balance Opening balance
Performance and quality deposit 48,650,845.18 46,117,111.79
Deposit 13,625,876.46 4,885,326.38
Reserved expense 11,810,759.96 17,194,987.92
Tax withheld 583,427,563.55 584,599,356.81
Pledge 300,000.00
Others 54,728,839.06 48,335,625.38
Total 712,243,884.21 701,432,408.28
(2) Significant payables aging more than 1 year
In RMB
Item Closing balance Reason
Shenzhen Yikang Real Estate Co. Ltd. 18,606,927.46 Affiliated party payment
Land value-added tax has yet to be settled
Tax withheld 573,957,082.47
and paid
Total 592,564,009.93 --
106
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
31. Non-current liabilities due within 1 year
In RMB
Item Closing balance Opening balance
Long-term loans due within 1 year 151,617,767.59 922,346,563.72
Total 151,617,767.59 922,346,563.72
32. Other current liabilities
In RMB
Item Closing balance Opening balance
Unterminated notes receivable 36,807,182.46 169,688,481.80
Substituted money on VAT 10,537,838.72 12,006,092.67
Others 13,953,454.50 11,026,370.77
Total 61,298,475.68 192,720,945.24
33. Long-term borrowings
(1) Classification of long-term borrowings
In RMB
Item Closing balance Opening balance
Loan by pledge 293,978,153.39
Loan by pledge 1,151,161,462.35 182,523,338.17
Guarantee loan 70,000,000.00
Total 1,151,161,462.35 546,501,491.56
The interest rate period of long-term borrowings: adjust according to the agreed proportion based on the LPR interest rate, and the
upper limit is 6.615%.
34. Anticipated liabilities
In RMB
Item Closing balance Opening balance Reason
Maintenance fee 4,426,285.92 7,793,527.16 Contract agreement
Total 4,426,285.92 7,793,527.16 --
35. Deferred earning
In RMB
107
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Item Opening balance Increase Decrease Closing balance Reason
See the following
Government subsidy 10,817,247.40 200,000.00 193,359.99 10,823,887.41
table
Total 10,817,247.40 200,000.00 193,359.99 10,823,887.41 --
Items involving government subsidies:
In RMB
Amount
included
Other misc. Related to
Opening Amount of in Costs offset Other Closing
Liabilities gains recorded assets/earnin
balance new subsidy non-operat in the period change balance
in this period g
ing
revenue
Railway transport
screen door
controlling system Assets-relate
77,653.85 9,452.16 68,201.69
and information d
transmission
technology
Major investment
project prize from
Industry and Trade
Assets-relate
Development 1,623,809.90 28,571.40 1,595,238.50
d
Division of
Dongguan Finance
Bureau
Distributed PV
power generation
project subsidy
Assets-relate
sponsored by 393,750.17 12,499.98 381,250.19
d
Dongguan Reform
and Development
Commission
Subsidized land Assets-relate
177,278.87 1,862.82 175,416.05
transfer d
Special subsidy for
industrial
Assets-relate
transformation, 800,000.00 20,000.01 779,999.99
d
upgrading and
development
Enterprise Assets-relate
468,000.00 24,000.00 444,000.00
informationization d
108
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
subsidy project of
Shenzhen Small and
Medium Enterprise
Service Agency
National Industry
Revitalization and
Assets-relate
Technology 7,276,754.61 61,993.62 7,214,760.99
d
Renovation Project
fund
Shenzhen Science
and Technology
Innovation Earning-relat
200,000.00 34,980.00 165,020.00
Committee ed
Technology
Innovation Subsidy
Total 10,817,247.40 200,000.00 0.00 193,359.99 0.00 0.00 10,823,887.41
36. Capital share
In RMB
Change (+,-)
Opening Closing
Issued new Transferred
balance Bonus shares Others Subtotal balance
shares from reserves
Total of capital 1,123,384,189. 1,088,278,951.
-35,105,238.00 -35,105,238.00
shares 00 00
Others:
The decrease in share capital was due to the repurchase and cancellation of B shares by the company during the reporting period.
37. Capital reserve
In RMB
Item Opening balance Increase Decrease Closing balance
Capital premium (share
94.24 94.24
capital premium)
Other capital reserves 154,097.35 154,097.35
Total 1,454,191.59 1,454,191.59
38. Shares in stock
In RMB
109
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Item Opening balance Increase Decrease Closing balance
Shares in stock 99,385,887.28 99,385,887.28
Total 99,385,887.28 99,385,887.28
Other note, including explanation about the reason of the change:
①The company held the nineteenth meeting of the eighth session of the board of directors and the first extraordinary general meeting
of shareholders on November 28, 2019 and December 16, 2019, respectively, and reviewed and approved the company’s repurchase
of some domestically listed foreign shares (B shares). As of June 30, 2020, 35,105,238 shares were repurchased through centra lized
bidding. The highest price was HKD 3.33 per share and the lowest price was HKD 2.45 per share. The actual cumulative payment of
108,930,044.20 Hong Kong dollars (including transaction costs) was included in the treasury stock of RMB 99,385,887.28. Yuan, on
May 20, 2020, the Shenzhen Branch of China Securities Depository and Clearing Co., Ltd. completed the repurchase and
cancellation procedures of the above-mentioned shares.
② 35,105,238 shares of share capital reduced as a result of the write-off of treasury shares;
③If the cost of the cancelled inventory shares is higher than the corresponding cost of equity, the surplus reserve of RMB
64,280,649.28 is offset when the cancellation is made.
39. Other miscellaneous income
In RMB
Amount occurred in the current period
Less:
amount
Less: amount
written After-tax
written into
into other After-tax amount
other gains Less:
Opening Amount gains and amount attributed Closing
Item and Income
balance before transferred attributed to balance
transferred tax
income tax into to the minority
into gain/loss expenses
gain/loss parent shareholde
in previous
in rs
terms
previous
terms
1. Other misc. incomes that
-9,192,030.3 -520,143.5 -520,143.5 -9,712,1
cannot be re-classified into gain
8 9 9 73.97
and loss
Fair value change of -9,192,030.3 -520,143.5 -520,143.5 -9,712,1
investment in other equity tools 8 9 9 73.97
2. Other misc. incomes that will 8,716,621.1 1,747,943. 286,866.6 1,461,076. 10,177,6
be re-classified into gain and loss 3 19 0 59 97.72
1,912,443. 286,866.6 1,625,577. 1,543,32
Cash flow hedge reserve -82,252.47
96 0 36 4.89
Translation difference of 42,320.14 -164,500.7 -164,500.7 -122,180
110
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
foreign exchange statement 7 7 .63
Investment real estate measured at 8,756,553.4 8,756,55
fair value 6 3.46
1,227,799. 286,866.6 940,933.0 465,523.
Other miscellaneous income -475,409.25
60 0 0 75
40. Surplus reserves
In RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
159,805,930.34 64,280,649.28 95,525,281.06
reserves
Total 159,805,930.34 64,280,649.28 95,525,281.06
The decrease in the surplus reserve in the current period was due to the fact that the cost of the cancelled treasury shares was higher
than the cost of the corresponding equity, and the surplus reserve was offset at the time of cancellation.
41. Retained profit
In RMB
Item Current period Last period
Adjustment on retained profit of previous period 3,898,626,177.99 3,921,225,872.96
Total of retained profit at beginning of year
16,171,320.58
adjusted (+ for increase, - for decrease)
Retained profit adjusted at beginning of year 3,898,626,177.99 3,937,397,193.54
Plus: Net profit attributable to owners of the
146,839,884.57 128,581,755.01
parent
Common share dividend payable 54,413,947.55 224,676,837.79
Closing retained profit 3,991,052,115.01 3,841,302,110.76
42. Operational revenue and costs
In RMB
Amount occurred in the current period Occurred in previous period
Item
Income Cost Income Cost
Main business 1,199,257,200.97 964,480,180.21 1,385,429,784.95 1,055,781,224.98
Other businesses 52,350,863.45 5,890,231.85 40,461,162.04 10,284,745.58
Total 1,251,608,064.42 970,370,412.06 1,425,890,946.99 1,066,065,970.56
Income information:
In RMB
111
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Contract classification Division 1 Division 2 Total
Type of product 1,251,608,064.42 1,251,608,064.42
Including:
Curtain wall system and
841,699,185.33 841,699,185.33
materials
Subway screen door and
333,462,675.90 333,462,675.90
service
PV power generation
9,727,737.59 9,727,737.59
products
Real estate sales 58,349,363.38 58,349,363.38
Others 8,369,102.22 8,369,102.22
Total 1,251,608,064.42 1,251,608,064.42
Information related to performance obligations:
The two businesses of the company's curtain wall system and materials, subway screen doors and services are mainly the contracts
corresponding to the engineering projects. Usually, a contract constitutes a single performance obligation and is a performance
obligation performed within a certain period of time. The company recognizes revenue according to the performance progress.
The sales of photovoltaic power generation products and real estate belong to contracts corresponding to commodity sales. Usually, a
contract constitutes a single performance obligation and is a performance obligation at a certain point in time. Revenue is recognized
when the customer obtains control of the relevant product.
Information related to the transaction price allocated to the remaining performance obligations:
The amount of revenue corresponding to the performance obligations that have been signed, but not yet performed or not yet
performed at the end of the reporting period is 4,367,812,121.53 yuan, of which 1,760,900,149.38 yuan is expected to be recog nized
in 2020, and 1,817,152,403.45 yuan is expected to be recognized in 2021, 789,759,568.70 yuan It is expected that revenue will be
recognized in 2022 and beyond.
Other note
The above-mentioned transaction price allocated to the remaining performance obligations mainly refers to the project contract status
of the company's curtain wall systems and materials, screen doors and service businesses.
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: None
43. Taxes and surcharges
In RMB
Item Amount occurred in the current period Occurred in previous period
City maintenance and construction tax 2,385,728.64 3,306,190.50
Education surtax 1,686,251.96 2,197,616.65
Property tax 2,227,891.98 2,367,178.99
Land using tax 684,461.08 772,262.35
112
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Vehicle usage tax 9,780.00 15,960.00
Stamp tax 473,893.06 945,391.73
Land VAT 31,689,811.56
Others 58,508.26 186,588.29
Total 7,526,514.98 41,481,000.07
44. Sales expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 10,756,603.46 13,756,507.19
Freight and miscellaneous charges 3,781,184.56 2,552,065.93
Travel expense 487,521.11 684,332.50
Entertainment expense 871,505.28 979,949.90
Material consumption 490,460.47 135,028.48
Office costs 262,176.26 48,247.56
Rental 1,105,257.44 952,964.78
Advertisement and promotion fee 934,902.84 865,854.97
Sales agency fee 1,726,247.64 5,943,528.83
Others 562,376.03 1,257,158.36
Total 20,978,235.09 27,175,638.50
45. Management expenses
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 38,668,384.40 47,235,320.97
Depreciation and amortization 4,117,481.73 4,810,846.91
Agencies 5,871,925.65 4,403,164.17
Maintenance costs 2,003,855.95 7,845,937.09
Water and electricity 100,825.03 351,795.21
Office expense 4,386,275.49 1,263,021.34
Travel expense 661,807.94 993,288.82
Entertainment expense 1,483,128.99 1,676,576.80
Rental 1,146,766.83 752,831.06
Lawsuit 274,438.54 337,101.22
113
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Material consumption 161,161.21 145,197.52
Property management fee 375,160.71 666,254.99
Others 3,308,250.69 12,197,441.46
Total 62,559,463.16 82,678,777.56
46. R&D cost
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 28,410,847.77 9,107,318.28
Material costs 17,682,878.47 1,605,931.43
Rental 992,251.86 938,339.52
Depreciation costs 734,440.47 304,783.16
Amortization of intangible assets 578,107.24 41,402.02
Travel expense 34,950.20 43,113.02
Maintenance costs 426,989.21 44,792.26
Test and experiment costs 1,869,321.47 2,141,801.56
Patent maintenance costs 229,952.90 299,269.18
Others 639,571.28 175,922.69
Total 51,599,310.87 14,702,673.12
47. Financial expenses
In RMB
Item Amount occurred in the current period Occurred in previous period
Interest expense 46,974,588.65 41,338,886.48
Less: interest capitalization 3,809,610.82
Less: discount government subsidies 862,000.00
Less: Interest income 6,952,304.21 2,439,090.91
Acceptant discount 6,049,511.72 8,563,237.66
Exchange gain/loss -311,399.26 99,040.10
Commission charges and others 2,933,782.63 2,781,267.03
Total 44,884,568.71 49,481,340.36
48. Other gains
In RMB
114
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Source Amount occurred in the current period Occurred in previous period
VAT rebated 2,649,784.42 1,359,044.12
Energy saving subsidy 980,000.00
R&D subsidy 789,252.16 696,000.00
Income tax and commission rebate 477,506.39 1,395.63
VAT, income tax rebate 260,464.56 95,000.00
Job stabilization, pre-job training
subsidies, unemployment insurance 400,564.26 12,400.00
premium refund
Innovation award 130,500.00 36,500.00
Nanshan District independent innovation
14,500.00 500,000.00
industry development special fund
Science and Technology Commission
34,980.00 130,040.00
innovation coupon
Self-breathing dual-layer hallow grass
energy-saving curtain wall development 61,993.62 61,993.62
project
Childbearing subsidy 45,932.33 112,877.76
Integration sponsorship 200,000.00
Enterprise innovation ability cultivation
508,000.00
and support
2018 Shenzhen standard allowance 102,000.00
Hi-tech enterprise award 100,000.00
Others 368,635.03 86,199.38
Total 6,214,112.77 4,001,450.51
49. Investment income
In RMB
Item Amount occurred in the current period Occurred in previous period
Gains from long-term equity investment
-375,202.09 -325,733.55
measured by equity
Investment income of trading financial assets
17,359,985.03
during the holding period
Investment income from disposal of trading
-16,598,749.99
financial assets
Investment gain of financial products 2,226,413.78 4,003,332.19
115
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Others -309,081.13 -382,436.52
Financial assets derecognised as a result of
-2,255,794.10
amortized cost
Total -713,663.54 4,056,397.16
50. Income from fair value fluctuation
In RMB
Source of income from fluctuation of fair
Amount occurred in the current period Occurred in previous period
value
Transactional financial assets 121,506.67
Gains from changes in fair value of other
9,107.28
non-current financial assets
Total 9,107.28 121,506.67
51. Credit impairment loss
In RMB
Item Amount occurred in the current period Occurred in previous period
Bad debt loss of other receivables -658,154.43 7,114,165.08
Contract asset impairment loss 50,624,553.37
Bad debt loss of account receivable 24,887,786.32 -11,483,825.46
Total 74,854,185.26 -4,369,660.38
52. Assets impairment loss
None
53. Assets disposal gains
In RMB
Source Amount occurred in the current period Occurred in previous period
Gain and loss from disposal of fixed assets
-1,981.72 -27,108.78
("-" for loss)
54. Non-business income
In RMB
116
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Amount occurred in the current Amount accounted into the
Item Occurred in previous period
period current accidental gain/loss
Penalty income 172,413.23 401,931.00 172,413.23
Compensation received 4,740.00 4,378,501.74 4,740.00
Payable account not able to be
1,350.91
paid
Others 98,688.41 92,108.50 98,688.41
Total 275,841.64 4,873,892.15 275,841.64
55. Non-business expenses
In RMB
Amount occurred in the current Amount accounted into the
Item Occurred in previous period
period current accidental gain/loss
Donation 5,113,500.00 122,000.00 5,113,500.00
Loss from retirement os
123,770.81 30,871.84 123,770.81
damaged non-current assets
Penalty and overdue fine 3,731.07 81,936.95 3,731.07
Lawsuit indemnity 143,641.00
Others 34,866.45 116.01 34,866.45
Total 5,275,868.33 378,565.80 5,275,868.33
56. 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 16,583,321.25 26,190,753.94
Deferred income tax expenses 5,659,613.66 -2,171,494.23
Total 22,242,934.91 24,019,259.71
(2) Adjustment process of accounting profit and income tax expense
In RMB
Item Amount occurred in the current period
Total profit 169,051,292.91
Income tax expenses calculated based on the legal (or applicable) 42,262,823.23
117
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
tax rates
Impacts of different tax rates applicable for some subsidiaries -18,604,275.19
Impacts of income tax before adjustment 694,341.23
Impacts of non-deductible cost, expense and loss 613,345.12
Impacts of using deductible loss of unrecognized deferred
-310,329.56
income tax assets
Deductible temporary difference and deductible loss of
43,276.68
unrecognized deferred income tax assets
Profit and loss of associates and joint ventures calculated using
93,800.52
the equity method
Taxation impact of R&D expense and (presented with “-”) -2,350,314.46
Others -199,732.65
Income tax expenses 22,242,934.91
57. Other miscellaneous income
See Note VII 39.
58. Notes to the cash flow statement
(1) Other cash inflow related to operation
In RMB
Item Amount occurred in the current period Occurred in previous period
Interest income 3,906,753.15 901,193.29
Subsidy income 2,673,142.53 3,590,774.08
Retrieving of bidding deposits 194,487,618.44 37,655,725.50
Other operating accounts 12,873,603.24 5,860,054.56
Total 213,941,117.36 48,007,747.43
(2) Other cash paid related to operation
In RMB
Item Amount occurred in the current period Occurred in previous period
Administrative expense 16,423,062.55 20,255,645.25
Sales expense 2,130,843.46 11,139,215.49
Bidding deposit paid 49,915,102.62 109,314,906.03
Net draft deposit net paid 129,561,924.62 161,663,318.36
118
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Lawsuit freezing funds 61,699,121.88
Other trades 16,953,229.98 4,842,346.84
Total 276,683,285.11 307,215,431.97
(3) Other cash received related to investment activities
In RMB
Item Amount occurred in the current period Occurred in previous period
Other investment-related cash received 250.00
Total 250.00
(4) Other cash received related to financing
In RMB
Item Amount occurred in the current period Occurred in previous period
B-share repurchase restricted funds
39,406.61
recovery
Total 39,406.61
(5) Other cash paid related to financing activities
In RMB
Item Amount occurred in the current period Occurred in previous period
Bill of exchange discounted loan margin 181,300,000.00 40,000,000.00
B share repurchase expenses 99,998,965.99
Total 281,298,965.99 40,000,000.00
59. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB
Supplementary information Amount of the Current Term Amount of the Previous Term
1. Net profit adjusted to cash flow related to
-- --
business operations:
Net profit 146,808,358.00 128,564,198.64
Plus: Asset impairment provision -74,854,185.26 -4,369,660.38
Fixed asset depreciation, gas and
11,798,105.97 11,883,064.96
petrol depreciation, production goods
119
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
depreciation
Amortization of intangible assets 2,117,631.57 1,762,127.14
Amortization of long-term
609,394.73 216,264.82
amortizable expenses
Loss from disposal of fixed assets,
intangible assets, and other long-term assets 1,981.72 27,108.78
(“-“ for gains)
Loss from fixed asset discard
123,770.81 30,871.84
(“-“ for gains)
Loss from fair value fluctuation
-9,107.28 -121,506.67
(“-“ for gains)
Financial expenses (“-“ for gains) 49,214,489.55 49,040,124.14
Investment losses (“-“ for gains) -1,542,130.56 -4,056,397.16
Decrease of deferred income tax
10,311,829.50 -3,881,562.85
asset (“-“ for increase)
Increase of deferred income tax
-4,365,349.25 1,956,533.62
asset (“-“ for increase)
Decrease of inventory (“-“ for
-46,192,352.00 33,483,787.38
increase)
Decrease of operational receivable
-135,629,210.99 -164,044,489.43
items (“-“ for increase)
Increase of operational receivable
-267,716,203.34 -351,001,350.74
items (“-“ for decrease)
Others 172,337,497.43 -72,214,117.20
Cash flow generated by business
-136,985,479.40 -372,725,003.11
operations, net
2 Major investment and financing activities
-- --
with no cash involved:
3． Net change in cash and cash equivalents: -- --
Balance of cash at period end 612,161,390.04 380,145,526.85
Less: Initial balance of cash 725,269,902.90 956,190,890.68
Net increase in cash and cash
-113,108,512.86 -576,045,363.83
equivalents
(2) Composition of cash and cash equivalents
In RMB
Item Closing balance Opening balance
120
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
I. Cash 612,161,390.04 725,269,902.90
Including: Cash in stock 9,534.72 4,244.86
Bank savings can be used at any time 604,613,893.63 725,255,753.53
Other monetary capital can be used at
7,537,961.69 9,904.51
any time
III. Balance of cash and cash equivalents at
612,161,390.04 725,269,902.90
end of term
60. Assets with restricted ownership or use rights
In RMB
Item Closing book value Reason
Monetary capital 444,757,864.32 Margin, pledged deposits, etc.
Inventory 99,936,207.50 Loan by pledge
Fixed assets 64,242,861.97 Loan by pledge
Intangible assets 19,990,230.04 Loan by pledge
100% stake in Fangda Property
200,000,000.00 Loan by pledge
Development held by the Company
Investment real estate 2,803,546,306.33 Loan by pledge
Other current assets 201,790,136.99 Pledge financing
Construction in process 31,053,433.16 Loan by pledge
Total 3,865,317,040.31 --
61. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Closing foreign currency
Item Exchange rate Closing RMB balance
balance
Monetary capital -- -- 43,153,012.17
Including: USD 1,061,677.02 7.079500 7,516,142.46
HK Dollar 31,198,423.57 0.913440 28,497,888.03
INR 16,235,911.99 0.093762 1,522,311.58
Vietnamese currency 3,145,709,253.00 0.000305 959,709.02
AUD 957,099.92 4.865700 4,656,961.08
Account receivable -- -- 61,443,643.71
121
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Including: USD 6,232,954.47 7.079500 44,126,201.17
HK Dollar 2,962,103.66 0.913440 2,705,703.97
INR 13,081,350.14 0.093762 1,226,533.55
AUD 2,750,931.01 4.865700 13,385,205.02
Other receivables 1,575,019.38
Including: USD 58,390.31 7.079500 413,374.20
HK Dollar 272,985.00 0.913440 249,355.42
INR 9,205,454.91 0.093762 863,121.86
AUD 10,105.00 4.865700 49,167.90
Short-term loans 46,253,410.00
Including: Euro 5,810,000.00 7.961000 46,253,410.00
Other payables 342,772.67
Including: USD 12,490.78 7.079500 88,428.48
HK Dollar 255,721.28 0.913440 233,586.04
AUD 4,266.22 4.865700 20,758.15
Contract assets 4,239,028.59
Including: USD 571,545.98 7.079500 4,046,259.77
AUD 39,617.90 4.865700 192,768.82
Contract liabilities 624,314.20
Including: USD 88,186.20 7.079500 624,314.20
(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
62. Hedging
Hedging items and related tools, qualitative and quantitative information about hedging risks:
Type Hedged item Hedging tools Hedged risk
Cash flow hedging Forward transaction of Aluminum futures The price of raw materials has risen, leading to an
aluminum sheet purchase; contract; increase in expected transaction procurement costs;
Forward foreign exchange Forward foreign Foreign currency depreciation, resulting in a decrease in
transactions exchange contract actual receipts
122
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
63. Government subsidy
(1) Government subsidy profiles
In RMB
Amount accounted into the
Type Amount Item
current gain/loss
Major investment project prize
from Industry and Trade
1,623,809.90 Deferred earning 28,571.40
Development Division of
Dongguan Finance Bureau
Distributed PV power
generation project subsidy
sponsored by Dongguan 393,750.17 Deferred earning 12,499.98
Reform and Development
Commission
Subsidized land transfer 177,278.87 Deferred earning 1,862.82
Special subsidy for industrial
transformation, upgrading and 800,000.00 Deferred earning 20,000.01
development
National Industry Revitalization
and Technology Renovation 7,276,754.61 Deferred earning 61,993.62
Project fund
Enterprise informationization
subsidy project of Shenzhen
468,000.00 Deferred earning 24,000.00
Small and Medium Enterprise
Service Agency
Shenzhen Science and
Technology Innovation
200,000.00 Deferred earning 34,980.00
Committee Technology
Innovation Subsidy
Railway transport screen door
controlling system and
77,653.85 Deferred earning 9,452.16
information transmission
technology subsidy
VAT rebated into revenue 2,649,784.42 Other gains 2,649,784.42
Subsidies for demonstration
projects supported by building
980,000.00 Other gains 980,000.00
energy conservation
development funds
123
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Income tax commission 477,506.39 Other gains 477,506.39
Shenzhen Science and
Technology Innovation
379,000.00 Other gains 379,000.00
Committee enterprise R&D
funding
Nanchang High-tech Industrial
Development Zone
Management Committee 350,000.00 Other gains 350,000.00
Science and Technology Bureau
R&D expense subsidy
VAT, income tax rebate 260,464.56 Other gains 260,464.56
Employment subsidy 227,517.31 Other gains 227,517.31
Others 696,480.10 Other gains 696,480.10
Total 17,038,000.18 6,214,112.77
(2) Government subsidy refund
□ Applicable √ Inapplicable
VIII. Change to Consolidation Scope
1. Change to the consolidation scope for other reasons
1. In this period, two subsidiaries directly controlled namely Fangda Qingling and Fangda Cloud Track Company were newly
established and two subsidiaries were added in the current consolidated statement;
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,
Fangda Jianke Shenzhen Shenzhen 98.39% 1.61% Incorporation
and installation of
curtain walls
Production,
Fangda
Shenzhen Shenzhen processing and 51.00% 49.00% Incorporation
Zhichuang
installation of
124
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
subway screen
doors
Prodution and
sales of new-type
materialsm
Fangda New
Nanchang Nanchang composite 75.00% 25.00% Incorporation
Material
materials and
production of
curtain walls
Real estate
Fangda Property Shenzhen Shenzhen development and 100.00% Incorporation
operation
Design and
Fangda New
Shenzhen Shenzhen construction of 99.00% 1.00% Incorporation
Energy
PV power plants
Trusted
processing of
Chengdu Fangda Chengdu Chengdu 100.00% Incorporation
building curtain
wall materials
Shihui
Virgin Islands Virgin Islands Investment 100.00% Incorporation
International
Installation and
Dongguan New
Dongguan Dongguan sales of building 100.00% Incorporation
Material
curtain walls
Fangda Property Property
Shenzhen Shenzhen 100.00% Incorporation
Management management
Real estate
Jiangxi Property
Nanchang Nanchang development and 100.00% Incorporation
Development
operation
Design and
Luxin New
Pingxiang Pingxiang construction of 100.00% Incorporation
Energy
PV power plants
Design and
Xinjian New
Nanchang Nanchang construction of 100.00% Incorporation
Energy
PV power plants
Design and
Dongguan New
Dongguan Dongguan construction of 100.00% Incorporation
Energy
PV power plants
Kechuangyuan Software
Shenzhen Shenzhen 100.00% Incorporation
Software development
125
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Zhichuang
Metro screen
Technology Hong Hong Kong Hong Kong 100.00% Incorporation
door
Kong
Hongjun
Investment Shenzhen Shenzhen Investment 98.00% 2.00% Incorporation
Company
Designing,
Fangda Australia manufacturing,
Australia Australia 100.00% Incorporation
Co., Ltd. and installation of
curtain walls
Intelligent
technology, new
Fang Qingling Shanghai Shanghai energy, 30.00% 70.00% Incorporation
automated
technology
Design,
development and
Fangda Cloud
Shenzhen Shenzhen sales of cloud rail 100.00% Incorporation
Rail
transport
equipment
Building
Chengda Curtain decoration and
Chengdu Chengdu 100.00% Incorporation
Wall Company other construction
industry
Designing,
Fangda Southeast manufacturing,
Vietnam Vietnam 100.00% Incorporation
Asia and installation of
curtain walls
Construction
technology,
intelligent
technology,
automation
Fangda Jianzhi Shanghai Shanghai technology, 100.00% Incorporation
design,
production and
installation of
building curtain
walls
Zhongrong Litai Shenzhen Shenzhen Business service 55.00% Purchase
Jianke Hong Hong Kong Hong Kong Designing, 100.00% Incorporation
126
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Kong manufacturing,
and installation of
curtain walls
Others:
Jianke Hong Kong Company has a registered capital of 40,000.00 Hong Kong dollars, and Shihui International Company paid up its
capital on May 19, 2020.
(2) Major non wholly-owned subsidiaries
In RMB
Dividend to be Interest balance of
Shareholding of minority Profit and loss attributed
Company distributed to minority minority shareholders in
shareholders to minority shareholders
shareholders the end of the period
Zhongrong Litai 45.00% -31,526.57 48,378,483.03
(3) Financial highlights of major non wholly owned subsidiaries
In RMB
Closing balance Opening balance
Compan Non-curr Non-curr Non-curr Non-curr
Current Total of Current Total Current Total of Current Total
y ent ent ent ent
asset assets liabilities liabilities asset assets liabilities liabilities
assets liabilities assets liabilities
Zhongro 205,490, 30,064.0 205,520, 98,013,1 98,013,1 174,827, 30,066.1 174,857, 67,279,4 67,279,4
ng Litai 834.99 6 899.05 58.99 58.99 165.52 2 231.64 32.54 32.54
In RMB
Amount occurred in the current period Occurred in previous period
Business Business
Company Total of misc. Total of misc.
Turnover Net profit operation Turnover Net profit operation
incomes incomes
cash flows cash flows
Zhongrong
229,334.85 -70,059.04 -70,059.04 -11,053.19 -143,071.56 -143,071.56 19.69
Litai
2. Interests in joint ventures or associates
(1) Financial summary of insignificant joint ventures and associates
In RMB
Closing balance/amount occurred in this Opening balance/amount occurred in
period previous period
Associate: -- --
127
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Total book value of investment 56,847,038.74 57,222,240.83
Total shareholding -- --
Net profit -375,202.09 -325,733.55
Total of misc. incomes -375,202.09 -325,733.55
X. Risks of Financial Tools
The risks associated with the financial instruments of the Company arise from the various financial assets and liabilities
recognized by the Company in the course of its operations, including credit risks, liquidity risks and market risks.
The management objectives and policies of various risks related to financial instruments are governed by the management of
the company. The operating management is responsible for daily risk management through functional departments (for example, the
company reviews the company's credit sales on a case-by-case basis). The internal audit department of the company conducts daily
supervision of the implementation of the company's risk management policies and procedures, and reports relevant findings to the
company's audit committee in a timely manner.
The overall goal of the company's risk management is to formulate risk management policies that minimize the risks
associated with various financial instruments without excessively affecting the company's competitiveness and resilience.
1. Credit risk
Credit risk is caused by the failure of one party of a financial instrument in performing its obligations, causing the risk of
financial loss for the other party. The credit risk of the company mainly arises from currency funds, receivables, receivables, other
receivables and long-term receivables. The credit risk of these financial assets is derived from the counterparty default and the
maximum exposure is equal to the carrying amount of these instruments.
The company's money and funds are mainly deposited in the commercial banks and other financial institutions. The company
believes that these commercial banks have higher reputation and asset status and have lower credit risk.
For receivables, the Group sets up related policies to control the credit risk. The Group set the credit line and term for de btors
according to their financial status, external rating, and possibility of getting third-party guarantee, credit record and other factors. The
Group regularly monitors debtors’ credit record. For those with poor credit record, the Group will send written payment remin ders,
shorten or cancel credit term to lower the general credit risk.
(1) Significant increases in credit risk
The credit risk of the financial instrument has not increased significantly since the initial confirmation. In determining whether
the credit risk has increased significantly since the initial recognition, the Company considers reasonable and evidenced information,
including forward-looking information, that can be obtained without unnecessary additional costs or effort. The Company determines
the relative risk of default risk of the financial instrument by comparing the risk of default of the financial instrument on the balance
sheet date with the risk of default on the initial recognition date to assess the credit risk of the financial instrument fro m initial
recognition.
When triggering one or more of the following quantitative and qualitative criteria, we believe that the credit risk of the
financial instruments has increased significantly: The quantitative criterion is mainly that the probability of default in the remaining
period of the reporting date has increased by more than a certain proportion from the initial confirmation; The qualitative criteria are
significant adverse changes in the operation or financial situation of the principal debtor.
(2) Definition of assets where credit impairment has occurred
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
In order to determine whether or not credit impairment occurs, the standard adopted by our company is consistent with the
credit risk management target for related financial instruments, and quantitative and qualitative indicators are considered.
Major financial difficulties have occurred to the issuer or the debtor; Breach of contract by the debtor, such as payment of
interest or default or overdue of principal; (B) The concession that the debtor would not make under any other circumstances for
economic or contractual cons iderations relating to the financial difficulties of the debtor; The debtor is likely to be bankrupt or
undertake other financial restructuring; The financial difficulties of the issuer or debtor lead to the disappearance of the active market
for the financial asset; To purchase or generate a financial asset at a substantial discount, which reflects the fact that a credit loss has
occurred.
Credit impairment in financial assets may be caused by a combination of multiple events, not necessarily by events tha t can be
identified separately.
(3) Expected credit loss measurement
Depending on whether there is a significant increase in credit risk and whether a credit impairment has occurred, the Company
prepares different assets for a 12-month or full expected credit loss. The key parameters of expected credit loss measurement include
default probability, default loss rate and default risk exposure. Taking into account the quantitative analysis and forward-looking
information of historical statistics (such as counterparty ratings, guaranty methods, collateral categories, repayment methods, etc.),
the Company establishes the default probability, default loss rate and default risk exposure model.
Definition:
The probability of default refers to the possibility that the debtor will not be able to fulfil its obligation to pay in the next 12
months or throughout the remaining period.
Breach Loss Rate means the extent of loss expected by the Company for breach risk exposure. Depending on the type of
counterparty, the manner and priority of recourse, and the different collateral, the default loss rate is also different. The default loss
rate is the percentage of the risk exposure loss at the time of the default, calculated on the basis of the next 12 months or the entire
lifetime.
Exposure to default is the amount payable to the Company at the time of default in the next 12 months or throughout the
remaining life. Prospective information credit risks significantly increased and expected credit losses were calculated. Through the
analysis of historical data, the company has identified the key economic indexes that affect the credit risk of each business type and
the expected credit loss.
The largest credit risk facing the Group is the book value of each financial asset on the balance sheet. The Group makes no
guarantee that may cause the Group credit risks.
Among the Group’s receivables and contract assets, accounts receivable and contract assets from top 5 customers account for
21.76% of the total accounts receivable (2019: 17.66%); among other receivables, other receivables from top 5 customers account for
66.38% of the total other receivables (2019: 71.29%).
2. Liquidity risk
Liquidity risk is the risk of capital shortage when the Group needs to pay cash or settled with other financial assets. The
company is responsible for the cash management of its subsidiaries, including short-term investments in cash surpluses and loans to
meet projected cash requirements. The company's policy is to regularly monitor short and long-term liquidity requirements and
compliance with borrowing agreements to ensure adequate cash reserves and readily available securities.
The maturity period of the company's financial liabilities at the end of the period is as follows:
Contract amount: RMB
129
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
30 June 2020
Item
Less than 1 year Within 1-3 years Over 3 years Total
Short-term loans 128,063.57 128,063.57
Notes payable 53,147.84 53,147.84
Account payable 107,744.79 1,999.77 915.19 110,659.75
Employees' wage payable 2,459.35 2,459.35
Other payables 62,815.19 2,222.97 6,186.23 71,224.39
Non-current liabilities due in 1 year 15,161.78 15,161.78
Other current liabilities 5,954.40 76.93 98.52 6,129.85
Long-term loans 0.00 24,991.15 90,125.00 115,116.15
Total liabilities 375,346.90 29,290.81 97,324.94 501,962.66
The expiry period of the company's financial liabilities is as follows:
Contract amount: RMB
31 December 2019
Item
Less than 1 year Within 1-3 years Over 3 years Total
Short-term loans 72,461.82 - - 72,461.82
Notes payable 57,881.60 - - 57,881.60
Account payable 118,979.57 0.97 96.79 119,077.33
Employees' wage payable 5,584.71 - - 5,584.71
Other payables 68,410.66 1,170.99 561.59 70,143.24
Non-current liabilities due in 1 92,234.66 - - 92,234.66
year
Other current liabilities 18,169.46 - - 18,169.46
Long-term loans - 39,650.15 15,000.00 54,650.15
Total liabilities 433,722.48 40,822.11 15,658.38 490,202.97
3. Market risks and measures
(1) Credit risks
The exchange rate risk of the company mainly comes from the assets and liabilities of the company and its subsidiaries in
foreign currency not denominated in its functional currency. Except for the use of Hong Kong dollars, United States dollars,
Australian dollars, Vietnamese shields, Indian rupees or Singapore currencies by its subsidiaries established in and outside the Hong
Kong Special Administrative Region, other major businesses of the Company shall be denominated in Renminbi.
As of June 30, 2020, the foreign currency financial assets and foreign currency financial liabilities of the company at the end
of the period are listed in the description of foreign currency monetary items in section VII. 61.
The company pays close attention to the impact of exchange rate changes on the company's exchange rate risk. The company
continuously monitors the scale of foreign currency transactions and foreign currency assets and liabilities to minimize fore ign
exchange risks. To this end, the Company may avoid foreign exchange risks by signing forward foreign exchange contracts or
currency swap contracts.
(2) Exchange rate risk
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
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 intere st rate
according to the market environment and regularly reviews and monitors the combination of fixed and floating interest rate
instruments.
The company's finance department continuously monitors the company's interest rate level. The rising interest rate will
increase the cost of the new interest-bearing debt and the interest expenditure on interest-bearing debt which has not yet been paid by
the company at the floating rate, and will have a significant adverse effect on the company's financial performance. Management will
make adjustments in time according to the latest market conditions.
As of June 30, 2020, the current floating interest rate borrowings of 2.049 billion yuan, while other risk variables remain
unchanged, if the borrowing rate calculated at the floating interest rate rises or falls by 50 basis points, the company's net profit for
the year will be Will decrease or increase 7,685,300 yuan.
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
(1) Transactional financial
1,815,676.34 18,005,336.72 19,821,013.06
assets
1. Financial assets
measured at fair value
with variations accounted 1,815,676.34 18,005,336.72 19,821,013.06
into current income
account
(1) Investment in equity
18,005,336.72 18,005,336.72
tools
(2) Derivative financial
1,815,676.34 1,815,676.34
assets
(2) Receivable financing 300,000.00 300,000.00
(3) Investment in other
20,140,037.85 20,140,037.85
equity tools
(4) Investment real estate 5,517,829,915.07 5,517,829,915.07
1. Leased building 5,517,829,915.07 5,517,829,915.07
(5) Other non-current 5,018,835.30 5,018,835.30
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
financial assets
Total assets measured at
1,815,676.34 5,517,829,915.07 43,464,209.87 5,563,109,801.28
fair value continuously
2. Recognition basis of market value of continuous and discontinuous items measured at first level fair
value
The Group determines the fair value using quotation in an active market for financial instruments traded in an active market;
3. Valuation technique and qualitative and quantitative information for key parameters of continuous and
discontinuous second level fair value items
For investment 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 fa ctors.
4. Valuation technique and qualitative and quantitative information for key parameters of continuous and
discontinuous third level fair value items
If there is no active market, the Company uses evaluation techniques to determine the fair value. The valuation models are mainly
cash flow discount model and market comparable company model. The input value of valuation technology mainly includes risk-free
interest rate, benchmark interest rate, exchange rate, credit point difference, liquidity premium, lack of liquidity discount, etc.
5. Switch between different levels, switch reason and switching time policy
The company takes the occurrence date of the events leading to the transition between levels as the time point to confirm the
transition between levels. In the period, there is no switch in the financial assets measured at fair value between the first and second
level or transfer in or out of the third level.
6. Fair value of financial assets and liabilities not measured at fair value
Financial assets and liabilities measured at amortized cost include: monetary capital, bills receivable, accounts receivable, other
receivables, short-term borrowings, notes payable, 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
Registered capital Share of the parent Voting power of the
Parent Registered address Business
(in RMB10,000) co. in the Company parent company
Shenzhen Banglin
Technologies Shenzhen Industrial investment 3,000.00 10.55% 10.55%
Development Co.,
132
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Ltd.
Shengjiu Investment
Hong Kong Industrial investment HKD1.00 9.57% 9.57%
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 na tural
persons. Among them, Chairman Xiong Jianming is holding 85％ shares, and Mr. Xiong Xi – son of Mr. Xiong Jianming, is holding
15% of the shares.
(2) Among the top 10 shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu Investment Co., Ltd. are
acting in concert. The 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 Xiong Jianming.
2. Subsidiaries of the Company
For details of the company’s subsidiaries, please refer to Section IX. 1. Equity in subsidiaries.
3. Joint ventures and associates
For the important joint ventures or joint ventures of this enterprise, please refer to section IX. 2. Rights and interests in joint venture
arrangements or joint ventures.
Information about other joint ventures or associates with related transactions in this period or with balance generated by related
transactions in previous period:
Joint venture or associate Relationship with the Company
Shenzhen Ganshang Joint Investment Co., Ltd. (Shenzhen Ganshang) Associate
4. Other associates
Other related parties Relationship with the Company
Ganshang Joint Investment Associate
Jiangxi Business Innovative Property Joint Stock (Jiangxi Business
Associate
Inovation)
Shenzhen Qijian Technology Co., Ltd. (Qijian Technology) Common actual controller
Shenyang Fangda Semi-conductor Lighting Co., Ltd. (hereinafter
Subsidiary in liquidation
Shenyang Fangda)
Shenzhen Woke Semi-conductor Lighting Co., Ltd. (hereinafter
Subsidiary in liquidation
Shenzhen Woke)
Gong Qing Cheng Shi Li He Investment Management Partnership Affiliated relationship with Shenzhen Banglin Technology
Enterprise (limited partner) Development Co., Ltd.
Director, manager and secretary of the Board Key management
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
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 25,261.82 22,610.18
goods
Property service and sales of
Ganshang Joint Investment 5,060.89
goods
(2) Related leasing
The Company is the leasor:
In RMB
Name of the leasee Category of asset for lease Rental recognized in the period Rental recognized in the period
Qijian Technology Houses & buildings 207,366.00 207,366.00
Ganshang Joint Investment Houses & buildings 66,475.80
(3) Related guarantees
The Company is the guarantor:
In RMB
Beneficiary party Amount guaranteed Start date Due date Completed or not
Fangda Jianke 300,000,000.00 28 August 2018 2020.07.31 No
Fangda Jianke 100,000,000.00 21 June 2019 2020.06.20 No
Fangda Property 1,350,000,000.00 25 February 2020 24 February 2020 No
Fangda Jianke 250,000,000.00 20 August 2019 2020.08.19 No
Fangda Jianke 600,000,000.00 24 February 2020 13 February 2021 No
Fangda Jianke 300,000,000.00 1 August 2019 2020.07.31 No
Fangda Jianke 400,000,000.00 17 April 2019 2020.04.17 No
Fangda Zhichuang 216,000,000.00 6 August 2018 2020.07.12 No
Fangda Zhichuang 150,000,000.00 27 May 2019 2020.05.27 No
Fangda Zhichuang 200,000,000.00 16 June 2020 13 February 2021 No
Fangda Zhichuang 200,000,000.00 1 August 2019 2020.07.31 No
Fangda Zhichuang 30,000,000.00 29 June 2020 23 June 2020 No
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Fangda New Material 65,000,000.00 23 May 2020 22 May 2021 No
Fangda New Material 80,000,000.00 24 April 2019 2020.04.23 No
Fang Qingling 80,000,000.00 10 July 2019 2024.07.10 No
Jiangxi Property
200,000,000.00 19 June 2019 2023.06.23 No
Development
Fangda Jianke and
140,000,000.00 18 December 2019 No
Fangda Zhichuang
Total 4,661,000,000.00
The Company is the guarantied party:
In RMB
Guarantor Amount guaranteed Start date Due date Completed or not
Fangda Jianke 500,000,000.00 26 March 2019 2020.03.26 No
Fangda Jianke, Fangda
100,000,000.00 26 March 2019 2021.3.20 No
New Energy
Note to related guarantees
1. The above-mentioned guarantees are all associated guarantees within interested entities of the Group.
2. HSBC has a total credit of RMB 90 million to the Company, Fangda Jianke and Fangda Zhichuang and has not yet agreed on
the credit expiration date. HSBC regularly evaluates the credit status. The restriction on the use of the credit is as follows:
The company can use non-financial bank guarantees of up to 90 million yuan to grant credit;
Fangda Jianke has non-committed combined revolving credits of not more than RMB90 million including revolving loans of
up to RMB90 million, non-financial bank guarantees of up to RMB90 million and bank acceptances of up to RMB90 million.
Fangda Jianke has non-committed combined revolving credits of not more than RMB140 million including revolving loans of
up to RMB50 million, non-financial bank guarantees of up to RMB140 million and bank acceptances of up to RMB140 million.
(3) Xingye Bank total credit to this company, Fangda Jianke company, Zhixin technology company 900 million yuan, of which
Fangda Jianke company no more than 400 million yuan, Zhixin technology company no more than 12 million yuan, the company no
more than 600 million yuan.
(4) Remuneration of key management
In RMB
Item Amount occurred in the current period Occurred in previous period
Directors, supervisors and senior
3,921,960.54 4,251,796.50
management
6. Receivable and payables due with related parties
(1) Receivable interest
In RMB
135
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Closing balance Opening balance
Project Affiliated party Remaining book Remaining book
Bad debt provision Bad debt provision
value value
Account receivable Qijian Technology 1,230.45 10.58 1,212.89 12.13
Other receivables Shenyang Fangda 42,877.00 42,877.00 42,877.00 42,877.00
Other receivables Shenzhen Woke 867,442.94 867,442.94 867,442.94 867,442.94
Ganshang Joint
Other receivables 5,015,089.25 74,724.83 5,015,089.25 74,724.83
Investment
XIII. Share Payment
1. Overall share payment
□ Applicable √ Inapplicable
2. Share payment settled by equity
□ Applicable √ Inapplicable
3. Share payment settled by cash
□ Applicable √ Inapplicable
4. Revising and termination of share payment
None
XIV. Commitment and Contingent Events
1. Major commitments
Major commitments that exist on the balance sheet day
Major commitments that exist on the balance sheet day
On November 6, 2017, Fangda Real Estate Co., Ltd., a subsidiary of the Company, and Bangshen Electronics (Shenzhen) Co.,
Ltd. signed the “Joint Development Agreement on Fangda Bangshen Industrial Park (Temporary Name) Urban Renewal Project”,
and the two parties agreed to develop cooperatively. In order to develop urban renewing projects such as a “renovation projec t”,
Fangda Real Estate provided Party A with property compensation through renovating and renovating the property allocation terms
agreed upon by both parties, and obtained independent development rights of the project. As of June 30, 2020, Fangda Real Estate
Co., Ltd. had paid a security deposit of RMB 20 million.
(2) In July 2018 ,the company's subsidiary Fangda Real Estate Co. Ltd. (Party A) signed a contract with Shenzhen Yikang Real
Estate Co. Ltd. (Party B1) and Shenzhen Qianhai Zhongzheng Dingfeng No. 6 Investment Enterprise (Limited Partners hip) (Party
B2), "Shenzhen Henggang Dakang Village Project Cooperation Agreement". Party B agrees to transfer the entire equity of the project
company it holds and the entire development interest of the project to Party A. Party A shall pay Party B a total of RMB600 million
for the cooperation price. As of June 30, 2020, Fangda Real Estate Company had paid a deposit of RMB 50 million to Party B and
the project company, and had paid a service fee of RMB 20 million.
As of June 30, 2020, the Group did not have other commitments that should be disclosed.
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
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
Plaintiff Defender Case Court Target amount Progress
Fangda Jianke Fujian Huapu Real Estate Engineering Fuzhou Taijiang Claim: At trial
Development Co., Ltd. contract dispute District People's RMB14,183,623.83
Court Counterclaim:
RMB12,746,000.00
Fangda Jianke Zhejiang Jiayue Industrial Engineering People's Court of Claim: At trial
Co., Ltd. contract dispute Coqiao District, RMB32,318,994.15
Shaoxing City Counterclaim:
RMB39,844,925.72
Langfang Aomei Jiye Fangda Jianke Engineering People's Court of Claim: RMB19,721, At trial
Real Estate contract dispute Langfang 315.00
Development Co., Ltd. Development Counterclaim:
Zone RMB13,920, 000.70
Notes:
In November 2018， Fangda Jianke a subsidiary of the Group sued Fujian Huapu Real Estate Development Co. Ltd. for a
payment of RMB 13810243.67 and its overdue interest payment of RMB 373,380.16 totaling RMB 14,183,623.83 to the Taijiang
District People's Court of Fuzhou City. On 10 May 2019, the court ruled against the prosecution; On 16 May 2019, Fang Da Jianke
filed an appeal; On 26 August 2019, the court of second instance ordered the court of first instance to revoke the first instance
decision; On 8 October 2019, it was sent back to the court of first instance, case number: (2 019) Min 0103 Republic of China 4282.
In April 2020, Huapu Company filed a counterclaim application to the court, requesting Fangda Jianke Company to pay a total of
12,746,000.00 yuan for the construction period and quality. As of the date of this report, the two cases are still under trial and have
not yet been judged.
2. In December 2019, Fangda Construction Company sued the construction party Zhejiang Jiayue Industrial Co., Ltd. to the
People's Court of Keqiao District, Shaoxing City for payment of 20,158,046.00 yuan for the construction of Shaoxing Jiayue Plaza
project, temporarily 4,660,400.00 yuan, return of performance bond 3,699,100.00 yuan, compensation for losses 2,144,400.00 yuan,
a total of 30,661,900.00 yuan. Thereafter, Fang Da Jianke increased the number of claims, totalling 32,318, 994.15 yuan. In March
2020, Jiayue Company filed a counterclaim with the court, demanding Fangda Construction Company to pay a penalty of RMB
369,899.98 for the construction period, RMB 13,529,427.00 for quality maintenance, and a compensation of RMB 22,193,998.74 for
breach of contract damages, deducting a performance bond of RMB 3,699,100.00, and a fine of RMB 52,500.00 for a total of
39,844,925.72 yuan. The two parties separately initiated project cost appraisal and project quality appraisal. As of the date of this
report, the two cases are still under trial and have not yet been judged.
3. Langfang Aomei Foundation Real Estate Development Co., Ltd. filed a lawsuit with the court on June 19, 2019, requesting
Fangda Construction Company to pay a total of 19,721,315.00 yuan for the construction period and quality penalty, and on December
26, 2019, the quality, restoration cost and unfinished Project cost appraisal application; Fangda Jianke filed a counterclaim on
September 11, 2019, demanding that Aomei Company pay the total amount of 13,927,000.00 yuan for the construction cost,
liquidated damages, and compensation losses. On November 22, 2019, it filed the completed project cost appraisal application. As of
the date of this report, the case is still in the appraisal process.
4. Shenzhen Qianhai Guohong Mobile Information Technology Co. Ltd. filed a lawsuit with Shenzhen Nanshan District
137
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
People's Court in January 2020 to require Fangda Property to pay a total of 13,2 31,913.00 for breach of contract of contract overdue
certification. As of the date of this report, the case has not been judged.
5. Shenzhen Fangcheng Teaching Equipment Co., Ltd. filed a lawsuit with Shenzhen Nanshan District People's Court in
February 2020 to terminate the house purchase contract signed with Fangda Property, return the purchase price of RMB7,240,752.00,
and pay the total amount of liquidated damages of RMB10,203,715.00 for overdue certification. As of the date of this report, the
casehas not been heard.
(2) Pending major lawsuits
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. (2019) The Civil Judgment No. 1Lu01 Minchu 2023 ruled that Shandong Zhonghong Real Estate Co., Ltd. shall
pay 18,804,914.46 yuan and interest to Fangda Construction Company within ten days from the effective date of the judgment, and
enjoy the priority of compensation. As of the date of this report, Zhonghong Company has entered the bankruptcy liquidation s tage.
The company has declared the creditor's rights of the above two judgments and has not received the relevant funds.
(3) Contingent liabilities formed by providing of guarantee to other companies’ debts and their influences on financial situa tion
As of June 30, 2020, the Company provided guarantees for the following unit loans:
Name of guaranteed entity Guarantee Amount (in RMB10,000) Term
Fangda Property Pledge/mortgage 99,000.00 2020/3/13 to 2030/3/13
guarantee
Fangda Jianke Guarantee 5,000.00 2020/02/26 to 2021/01/31
Fangda Jianke Guarantee 4,500.00 2020/05/20 to 2021/01/15
Fangda Jianke Guarantee 5,000.00 2020/01/02 to 2021/01/02
Fangda Zhichuang Guarantee 5,000.00 2020/02/26 to 2021/01/31
Fangda Zhichuang Guarantee 1,600.00 2019/8/7 to 2020/8/6
Fangda Zhichuang Guarantee 3,000.00 2020/06/29 to 2021/06/23
Fangda Property Warranty/mortgage 2,500.00 2019/7/22 to 2023/7/22
guarantee
Fangda Property Warranty/mortgage 2,500.00 2019/9/12 to 2023/7/22
guarantee
Fangda Property Warranty/mortgage 3,000.00 2019/9/26 to 2023/7/22
guarantee
Fangda Property Warranty/mortgage 2,000.00 2019/9/29 to 2023/7/22
guarantee
Fangda Property Warranty/mortgage 5,000.00 2019/10/31 to 2023/7/22
guarantee
Fangda Property Warranty/mortgage 4,000.00 2020/03/11 to 2023/7/22
guarantee
Fang Qingling Warranty/mortgage 723.78 2019/7/31 to 2024/7/10
guarantee
Fang Qingling Warranty/mortgage 586.24 2019/8/27 to 2024/7/10
guarantee
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Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Fang Qingling Warranty/mortgage 211.98 2019/9/27 to 2024/7/10
guarantee
Fang Qingling Warranty/mortgage 892.92 2019/11/18 to 2024/7/10
guarantee
Fang Qingling Warranty/mortgage 837.41 2019/12/20 to 2024/7/10
guarantee
Fang Qingling Warranty/mortgage 838.81 2020/01/15 to 2024/07/10
guarantee
Fangda Group Guarantee 8,000.00 2019/3/26 to 2021/3/20
Fangda Group Mortgage guarantee 20,000.00 2020/03/02 to 2021/02/28
Total 174,191.14
Note: (1) Contingent liabilities caused by guarantees provided for other entities are all related guarantees between interested entities
in the Group.
(2) 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 owners hip
certificates to banks. By 30 June 2020, the Company has provided periodic guarantee of RMB492,341,700.
On 30 June 2020, 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
3. Others
As of June 30, 2020:
Currency Guarantee balance (original Deposit (RMB) Credit line used (RMB)
currency)
RMB yuan 529,151,563.44 717,500.00 528,434,063.44
INR 88,699,949.00 8,316,684.62
HK $(HKD) 15,349,982.00 14,021,287.56
United States dollars (USD) 8,649,642.54 5,668,461.72 55,566,682.64
Total 6,385,961.72 606,338,718.26
139
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
XV. Post-balance-sheet events
None
XVI. Other material events
1. Segment information
(1) Recognition basis and accounting policy for segment report
The Group divides its businesses into five reporting segments. The reporting segments are determined based on financial infor mation
required by routine internal management. The Group’s management regularly review the operating results of the reporting segments
to determine resource distribution and evaluate their performance.
The reporting segments are:
(1) Curtain wall segment, production and sales of curtain wall materials, construction curtain wall design, production and installation;
(2) Rail transport segment: assembly and processing of metro screen doors;
(3) Real estate segment: development and operating of real estate on land of which land use right is legally obtained by the Company;
property management;
(4) New energy segment: photovoltaic power generation, photovoltaic power plant sales, photovoltaic equipment R & D, installation,
and sales, and photovoltaic power plant engineering design and installation
(5) Others
The segment report information is disclosed based on the accounting policies and measurement standards used by the segments when
reporting to the management. The policies and standards should be consistent with those used in preparing the financial state ment.
(2) Financial information
In RMB
Offset between
Item Curtain wall Rail transport Real estate New energy Others Total
segments
1,251,608,064.
Turnover 843,816,163.62 333,462,675.90 60,051,984.40 10,091,179.07 13,111,787.37 8,925,725.94
42
Including:
external 1,251,608,064.
841,699,185.33 333,462,675.90 58,349,363.38 9,727,737.59 8,369,102.22
transaction 42
income
Inter-segment
transaction 2,116,978.29 1,702,621.02 363,441.48 4,742,685.15 8,925,725.94 0.00
income
Including: 1,199,257,200.
834,247,195.86 332,479,644.40 24,505,244.14 10,091,179.07 0.00 2,066,062.50
major business 97
140
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
turnover
Operation cost 701,739,016.13 245,566,557.91 21,785,200.61 3,608,837.41 151,219.77 2,480,419.77 970,370,412.06
Including:
external 701,375,574.65 243,449,579.62 21,785,200.61 3,608,837.41 151,219.77 970,370,412.06
transaction cost
Cost 363,441.48 2,116,978.29 2,480,419.77 0.00
Including:
major business 697,304,141.14 245,365,878.41 18,478,958.78 3,608,837.41 0.00 2,480,419.77 962,277,395.97
cost
4,987,537,814. 6,703,022,282. 3,961,945,536. 5,124,238,402. 11,481,781,127
Total assets 786,110,214.67 167,403,681.71
97 78 10 56 .67
3,602,397,272. 4,281,233,329. 1,715,194,487. 3,926,709,504. 6,256,626,582.
Total liabilities 509,624,610.93 74,886,385.86
93 32 39 20 23
(3) Others
Since more than 90% of the Group’s revenue comes from Chinese customer and 90% of the Group’s assets are in China, no detailed
regional information is needed.
XVII. Notes to Financial Statements of the Parent
(1) Account receivable
(1) Account receivable disclosed by categories
In RMB
Closing balance Opening balance
Remaining book Remaining book
Bad debt provision Bad debt provision
Type value Book value
Book value
Proportio Provision value Proportio Provision
Amount Amount Amount Amount
n rate n rate
Including:
Account receivable
for which bad debt 871,303. 864,942.7 301,522.4
100.00% 6,360.61 0.73% 100.00% 3,708.73 1.23% 297,813.76
provision is made by 34 3 9
group
Including:
Other business 871,303. 864,942.7 301,522.4
100.00% 6,360.61 0.73% 100.00% 3,708.73 1.23% 297,813.76
payment 34 3 9
Total 871,303. 100.00% 6,360.61 0.73% 864,942.7 301,522.4 100.00% 3,708.73 1.23% 297,813.76
141
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
34 3 9
Provision for bad debts by combination:
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Other business payment 871,303.34 6,360.61 0.73%
Total 871,303.34 6,360.61 --
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, please
refer to the disclosure of other receivables to disclose information about bad debts:
□ Applicable √ Inapplicable
Account age
In RMB
Age Closing balance
Within 1 year (inclusive) 871,303.34
Total 871,303.34
(2) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Type Opening balance Written-back or Closing balance
Provision Canceled Others
recovered
Combination 3:
Other business 3,708.73 2,651.88 6,360.61
models
Total 3,708.73 2,651.88 6,360.61
(3) Balance of top 5 accounts receivable at the end of the period
In RMB
Closing balance of accounts Balance of bad debt provision at
Entity Percentage (%)
receivable the end of the period
Top five summary 638,638.30 73.31% 4,662.05
Total 638,638.30 73.31%
2. Other receivables
In RMB
142
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Item Closing balance Opening balance
Other receivables 2,365,126,667.11 1,973,381,342.74
Total 2,365,126,667.11 1,973,381,342.74
(1) Other receivables
1) Other receivables are disclosed by nature
In RMB
By nature Closing balance of book value Opening balance of book value
Deposit 70,699.54 70,699.54
Staff borrowing and petty cash 3,671.12 15,881.12
Debt by Luo Huichi 12,992,291.48 12,992,291.48
Others 970,543.47 983,435.52
Accounts between related parties within
2,364,992,462.81 1,973,222,410.41
the scope of consolidation
Total 2,379,029,668.42 1,987,284,718.07
2) Method of bad debt provision
In RMB
First stage Second stage Third stage
Expected credit Expected credit loss for the Expected credit loss for the
Bad debt provision Total
losses in the next 12 entire duration (no credit entire duration (credit
months impairment) impairment has occurred)
Balance on Wednesday,
2,403.91 13,900,971.42 13,903,375.33
January 01, 2020
Balance on January 01,
2020 in the current —— —— —— ——
period
Transferred back in the
374.02 374.02
current period
Balance on Tuesday, June
2,029.89 13,900,971.42 13,903,001.31
30, 2020
Changes in book balances with significant changes in the current period
□ Applicable √ Inapplicable
Account age
In RMB
143
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Age Closing balance
Within 1 year (inclusive) 2,365,054,326.34
1-2 years 3,671.12
2-3 years 42,877.00
Over 3 years 13,928,793.96
3-4 years 865,802.94
4-5 years 12,992,291.48
Over 5 years 70,699.54
Total 2,379,029,668.42
3) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Type Opening balance Written-back or Closing balance
Provision Canceled Others
recovered
Other receivables
and bad debt 13,903,375.33 374.02 13,903,001.31
provision
Total 13,903,375.33 374.02 13,903,001.31
4) Balance of top 5 other receivables at the end of the period
In RMB
Balance of bad debt
Entity By nature Closing balance Age Percentage (%) provision at the end
of the period
Fangda Property Associate accounts 1,258,465,573.45 Less than 1 year 52.90%
Fangda Jianke Associate accounts 1,001,298,680.64 Less than 1 year 42.09%
Fangda New Energy Associate accounts 68,729,377.09 Less than 1 year 2.89%
Shihui International Associate accounts 30,459,793.09 Less than 1 year 1.28%
Luo Huichi Debt by SOZN 12,992,291.48 4-5 年 0.55% 12,992,291.48
Total -- 2,371,945,715.75 -- 99.70% 12,992,291.48
3. Long-term share equity investment
In RMB
144
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Closing balance Opening balance
Item Remaining book Impairment Remaining book Impairment
Book value Book value
value provision value provision
Investment in
1,065,202,785.05 1,065,202,785.05 963,508,253.00 963,508,253.00
subsidiaries
Total 1,065,202,785.05 1,065,202,785.05 963,508,253.00 963,508,253.00
(1) Investment in subsidiaries
In RMB
Change (+,-) Balance of
impairment
Opening book Closing book
Invested entity Increased Decreased Impairment provision at the
value Others value
investment investment provision end of the
period
491,950,000.0
Fangda Jianke 491,950,000.00
0
Fangda New
74,496,600.00 74,496,600.00
Material
200,000,000.0
Fangda Property 200,000,000.00
0
Shihui
61,653.00 61,653.00
International
Fangda New
99,000,000.00 99,000,000.00
Energy
Hongjun
Investment 98,000,000.00 98,000,000.00
Company
Fangda
82,863,290.70 18,831,241.35 101,694,532.05
Zhichuang
963,508,253.0 1,065,202,785.
Total 82,863,290.70 18,831,241.35
0 05
4. Operational revenue and costs
In RMB
Amount occurred in the current period Occurred in previous period
Item
Income Cost Income Cost
Other businesses 12,719,395.10 151,219.77 17,142,022.88 3,496,588.06
145
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Total 12,719,395.10 151,219.77 17,142,022.88 3,496,588.06
Income information:
In RMB
Contract classification Division 1 Total
Including: Other
12,719,395.10 12,719,395.10
businesses
Total 12,719,395.10 12,719,395.10
Information related to performance obligations:
Information related to performance obligations:
5. Investment income
In RMB
Item Amount occurred in the current period Occurred in previous period
Investment gain of financial products 338,561.17 1,155,183.42
Total 338,561.17 1,155,183.42
XVIII. Supple mentary Materials
1. Detailed accidental gain/loss
√ Applicable □ Inapplicable
In RMB
Item Amount Notes
Gain/loss of non-current assets -1,981.72
Subsidies accounted into the current income
account (except the government subsidy
closely related to the enterprise’s business 3,564,328.35
and based on unified national standard
quota)
Gain/loss from change of fair value of
transactional financial asset and liabilities,
and investment gains from disposal of
transactional and derivative financial assets
1,926,439.93
and liabilities and sellable financial assets,
other than valid period value instruments
related to the Company’s common
businesses
Gain/loss from commissioned loans 397,420.84
146
Interim Financial Statements 2020 of China Fangda Group Co., Ltd.
Other non-business income and expenditures
-5,000,026.69
other than the above
Less: Influenced amount of income tax 339,144.08
Total 547,036.63 --
Explanation statement should be made for accidental gain/loss items defined and accidental gain/loss items defined as regular
gain/loss items according to the Explanation Announcement of Information Disclosure No. 1 - Non-recurring gain/loss mentioned.
□ Applicable √ Inapplicable
2. Net income on asset ratio and earning per share
Earning per share
Profit of the report period Weighted average net income/asset ratio Basic earnings per share Diluted Earnings per
(yuan/share) share (yuan/share)
Net profit attributable to common
2.81% 0.13 0.13
shareholders of the Company
Net profit attributable to the
common owners of the PLC after
2.80% 0.13 0.13
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
147
