Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
CHINA FANGDA GROUP CO., LTD.
2021 Financial Statements
August 2021
1
Interim Financial Statements 2021 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.
Wednesday, June 30, 2021
In RMB
Item Wednesday, June 30, 2021 Thursday, December 31, 2020
Current asset:
Monetary capital 1,246,131,160.65 1,463,974,162.44
Settlement provision
Outgoing call loan
Transactional financial assets 132,493,708.09 14,382,896.04
Derivative financial assets 5,096,490.27 6,974,448.22
Notes receivable 117,929,830.31 207,165,063.97
Account receivable 446,412,912.08 616,952,136.19
Receivable financing 23,798,104.10 10,727,129.28
Prepayment 24,126,119.19 24,105,635.39
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance
contracts receivable
Other receivables 168,599,288.27 162,282,396.88
Including: interest receivable 1,601,660.58
Dividend receivable
Repurchasing of financial assets
Inventory 774,694,262.15 837,831,790.88
Contract assets 1,662,933,014.05 1,433,599,583.48
Assets held for sales
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Non-current assets due in 1 year 91,082,209.06 141,943,454.82
Other current assets 235,259,911.57 233,223,084.51
Total current assets 4,928,557,009.79 5,153,161,782.10
Non-current assets:
Loan and advancement provided
Debt investment
Other debt investment
Long-term receivables
Long-term share equity investment 55,449,484.30 55,902,377.95
Investment in other equity tools 17,398,629.00 17,628,307.59
Other non-current financial assets 5,198,015.90 5,025,186.16
Investment real estate 5,646,194,098.44 5,634,648,416.52
Fixed assets 566,440,865.19 483,217,323.75
Construction in process 98,594,455.15 168,626,803.01
Productive biological assets
Gas & petrol
Use right assets 25,764,982.77
Intangible assets 76,541,048.06 77,201,610.87
R&D expense
Goodwill
Long-term amortizable expenses 7,008,249.85 4,581,487.32
Deferred income tax assets 186,758,149.49 186,649,335.96
Other non-current assets 107,305,323.12 104,817,688.85
Total of non-current assets 6,792,653,301.27 6,738,298,537.98
Total of assets 11,721,210,311.06 11,891,460,320.08
Current liabilities
Short-term loans 1,174,631,199.75 1,048,250,327.62
Loans from Central Bank
Call loan received
Transactional financial liabilities
Derivative financial liabilities 915,234.93
Notes payable 684,298,609.74 866,224,515.42
Account payable 1,127,961,009.14 1,282,847,988.91
Prepayment received 3,726,440.79 1,544,655.62
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Contract liabilities 166,915,485.03 265,487,113.12
Selling of repurchased financial
assets
Deposit received and held for
others
Entrusted trading of securities
Entrusted selling of securities
Employees' wage payable 26,879,789.78 60,894,196.78
Taxes payable 36,203,828.98 360,325,524.42
Other payables 158,525,255.26 153,635,067.86
Including: interest payable
Dividend payable 6,000,000.00
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liabilities due in 1
119,496,617.91 103,359,833.57
year
Other current liabilities 36,713,615.23 107,688,425.69
Total current liabilities 3,535,351,851.61 4,251,172,883.94
Non-current liabilities:
Insurance contract provision
Long-term loans 1,484,161,462.35 1,099,411,462.35
Bond payable
Including: preferred stock
Perpetual bond
Lease liabilities 24,619,179.70
Long-term payable
Long-term employees' wage
payable
Anticipated liabilities 30,000,528.43 33,425,500.13
Deferred earning 8,843,181.51 9,168,492.17
Deferred income tax liabilities 1,039,785,167.05 1,038,084,099.97
Other non-current liabilities
Total of non-current liabilities 2,587,409,519.04 2,180,089,554.62
Total liabilities 6,122,761,370.65 6,431,262,438.56
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Owner's equity:
Share capital 1,073,874,227.00 1,088,278,951.00
Other equity tools
Including: preferred stock
Perpetual bond
Capital reserves 122,211,372.31 20,459,588.40
Less: Shares in stock 42,748,530.12
Other miscellaneous income 2,076,706.89 2,078,167.63
Special reserves
Surplus reserve 106,783,436.96
Common risk provisions
Retained profit 4,304,908,130.31 4,217,527,242.56
Total of owner's equity belong to the
5,503,070,436.51 5,392,378,856.43
parent company
Minor shareholders' equity 95,378,503.90 67,819,025.09
Total of owners' equity 5,598,448,940.41 5,460,197,881.52
Total of liabilities and owner's interest 11,721,210,311.06 11,891,460,320.08
Legal representative: XiongJianming CFO: Lin Kebing Accounting Manager: Wu Bohua
2. Balance Sheet of the Parent Company
In RMB
Item Wednesday, June 30, 2021 Thursday, December 31, 2020
Current asset:
Monetary capital 104,169,224.51 204,828,995.78
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 888,385.48 885,849.08
Receivable financing
Prepayment 291,635.93 1,323,361.34
Other receivables 1,624,397,140.22 1,156,802,204.91
Including: interest receivable
Dividend receivable
Inventory
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Contract assets
Assets held for sales
Non-current assets due in 1 year
Other current assets 1,171,313.27 1,071,138.13
Total current assets 1,730,917,699.41 1,364,911,549.24
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term share equity investment 1,196,831,253.00 1,196,831,253.00
Investment in other equity tools 16,392,331.44 16,392,331.44
Other non-current financial assets 30,000,001.00 30,000,001.00
Investment real estate 330,957,456.00 334,498,436.00
Fixed assets 69,799,553.04 65,157,481.98
Construction in process
Productive biological assets
Gas & petrol
Use right assets
Intangible assets 1,366,852.92 1,521,975.72
R&D expense
Goodwill
Long-term amortizable expenses 450,845.25 687,202.16
Deferred income tax assets 28,784,112.10 26,592,617.26
Other non-current assets
Total of non-current assets 1,674,582,404.75 1,671,681,298.56
Total of assets 3,405,500,104.16 3,036,592,847.80
Current liabilities
Short-term loans 490,203,611.11 491,503,263.89
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 606,941.85 606,941.85
Prepayment received 868,632.74 927,674.32
Contract liabilities
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Employees' wage payable 1,256,126.64 3,440,073.04
Taxes payable 826,759.56 2,993,196.12
Other payables 374,408,006.97 28,068,648.70
Including: interest payable
Dividend payable
Liabilities held for sales
Non-current liabilities due in 1
year
Other current liabilities
Total current liabilities 868,170,078.87 527,539,797.92
Non-current liabilities:
Long-term loans
Bond payable
Including: preferred stock
Perpetual bond
Lease liabilities
Long-term payable
Long-term employees' wage
payable
Anticipated liabilities
Deferred earning
Deferred income tax liabilities 74,187,186.84 73,837,511.85
Other non-current liabilities
Total of non-current liabilities 74,187,186.84 73,837,511.85
Total liabilities 942,357,265.71 601,377,309.77
Owner's equity:
Share capital 1,073,874,227.00 1,088,278,951.00
Other equity tools
Including: preferred stock
Perpetual bond
Capital reserves 360,835.52 360,835.52
Less: Shares in stock 42,748,530.12
Other miscellaneous income 1,137,972.98 -371,129.71
Special reserves
Surplus reserve 78,439,630.84 106,783,436.96
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Retained profit 1,309,330,172.11 1,282,911,974.38
Total of owners' equity 2,463,142,838.45 2,435,215,538.03
Total of liabilities and owner's interest 3,405,500,104.16 3,036,592,847.80
3. Consolidated Income Statement
In RMB
Item H1 2021 H1 2020
1. Total revenue 1,568,778,834.98 1,256,258,223.01
Incl. Business income 1,568,778,834.98 1,256,258,223.01
Interest income
Insurance fee earned
Fee and commission
received
2. Total business cost 1,464,915,772.96 1,161,656,553.71
Incl. Business cost 1,208,641,803.18 972,247,913.86
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy
responsibility reserves provided
Insurance policy dividend
paid
Reinsurance expenses
Taxes and surcharges 35,853,693.88 7,589,822.75
Sales expense 25,434,914.81 21,243,542.31
Administrative expense 69,502,453.93 63,196,975.88
R&D cost 78,645,594.86 52,496,161.25
Financial expenses 46,837,312.30 44,882,137.66
Including: interest cost 43,637,100.05 43,164,977.83
Interest income 6,976,161.44 6,956,602.08
Add: other gains 6,607,058.06 6,214,112.77
Investment gains “-” for loss) -532,743.54 -642,178.57
Incl. Investment gains from
-452,893.65 -375,202.09
affiliates and joint ventures
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Financial assets
-3,032,899.72 -2,255,794.10
derecognised as a result of amortized cost
Exchange gains ("-" for loss)
Net open hedge gains (“-” for
loss)
Gains from change of fair value
172,829.74 50,384.90
(“-“ for loss)
Credit impairment ("-" for loss) 19,853,416.06 54,670,793.32
Investment impairment loss
3,466,913.89 20,219,822.04
("-" for loss)
Investment gains ("-" for loss) -2,027,304.03 -1,981.72
3. Operational profit ("-" for loss) 131,403,232.20 175,112,622.04
Plus: non-operational income 1,201,106.46 280,621.27
Less: non-operational expenditure 3,480,374.51 5,275,868.33
4. Gross profit ("-" for loss) 129,123,964.15 170,117,374.98
Less: Income tax expenses 13,936,493.66 22,259,131.92
5. Net profit ("-" for net loss) 115,187,470.49 147,858,243.06
(1) By operating consistency
1. Net profit from continuous
115,187,470.49 147,858,243.06
operation ("-" for net loss)
2. Net profit from discontinuous
operation ("-" for net loss)
(2) By ownership
1. Net profit attributable to the
111,488,701.33 147,784,781.12
owners of parent company
2. Minor shareholders’ equity 3,698,769.16 73,461.94
6. After-tax net amount of other misc.
-24,854.15 940,933.00
incomes
After-tax net amount of other misc.
-1,460.74 940,933.00
incomes attributed to parent's owner
(1) Other misc. incomes that cannot
-229,678.59 -520,143.59
be re-classified into gain and loss
1. Re-measure the change in
the defined benefit plan
2. Other comprehensive
income that cannot be transferred to
profit or loss under the equity method
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
3. Fair value change of
-229,678.59 -520,143.59
investment in other equity tools
4. Fair value change of the
Company's credit risk
5. Others
(2) Other misc. incomes that will be
228,217.85 1,461,076.59
re-classified into gain and loss
1. Other comprehensive
income that can be transferred to profit or
loss under the equity method
2. Fair value change of other
debt investment
3. Gains and losses from
changes in fair value of available-for-sale
financial assets
4. Other credit investment
credit impairment provisions
5. Cash flow hedge reserve -785,690.88 1,625,577.36
6. Translation difference of
-495,193.96 -164,500.77
foreign exchange statement
7. Others 1,509,102.69
After-tax net of other misc. income
-23,393.41
attributed to minority shareholders
7. Total of misc. incomes 115,162,616.34 148,799,176.06
Total of misc. incomes attributable
111,487,240.59 148,725,714.12
to the owners of the parent company
Total misc gains attributable to the
3,675,375.75 73,461.94
minor shareholders
8. Earnings per share:
(1) Basic earnings per share 0.10 0.13
(2) Diluted earnings per share 0.10 0.13
Net profit contributed by entities merged under common control in the report period was RMB17,512.89, net profit realized by
parties merged during the previous period is RMB1,049,885.06.
Legal representative: XiongJianming CFO: Lin Kebing Accounting Manager: Wu Bohua
4. Income Statement of the Parent Company
In RMB
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Item H1 2021 H1 2020
1. Turnover 12,068,999.58 12,719,395.10
Less: Operation cost 89,904.13 151,219.77
Taxes and surcharges 664,469.85 677,865.78
Sales expense
Administrative expense 13,509,831.81 11,316,043.39
R&D cost
Financial expenses 7,575,722.85 14,753,727.62
Including: interest cost 7,449,236.11 15,820,677.77
Interest income 407,702.78 1,914,893.50
Add: other gains 85,100.49 295,818.89
Investment gains (“-” for
33,976,138.71 338,561.17
loss)
Incl. Investment gains from
affiliates and joint ventures
Financial assets
derecognised as a result of amortized
cost ("-" for loss)
Net open hedge gains (“-”
for loss)
Gains from change of fair
value (“-“ for loss)
Credit impairment ("-" for
-3,239.44 -2,277.86
loss)
Investment impairment loss
("-" for loss)
Investment gains ("-" for loss) -460.17
2. Operational profit (“-” for loss) 24,286,610.53 -13,547,359.26
Plus: non-operational income 32,837.61 51,867.26
Less: non-operational expenditure 101,429.05 1,008.00
3. Gross profit ("-" for loss) 24,218,019.09 -13,496,500.00
Less: Income tax expenses -2,200,178.64 -3,313,543.54
4. Net profit (“-” for net loss) 26,418,197.73 -10,182,956.46
(1) Net profit from continuous
26,418,197.73 -10,182,956.46
operation ("-" for net loss)
(2) Net profit from discontinuous
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
operation ("-" for net loss)
5. After-tax net amount of other misc.
1,509,102.69
incomes
(1) Other misc. incomes that
cannot be re-classified into gain and
loss
1. Re-measure the change
in the defined benefit plan
2. Other comprehensive
income that cannot be transferred to
profit or loss under the equity method
3. Fair value change of
investment in other equity tools
4. Fair value change of the
Company's credit risk
5. Others
(2) Other misc. incomes that will
1,509,102.69
be re-classified into gain and loss
1. Other comprehensive
income that can be transferred to profit
or loss under the equity method
2. Fair value change of
other debt investment
3. Gains and losses from
changes in fair value of
available-for-sale financial assets
4. Other credit investment
credit impairment provisions
5. Cash flow hedge reserve
6. Translation difference of
foreign exchange statement
7. Others 1,509,102.69
6. Total of misc. incomes 27,927,300.42 -10,182,956.46
7. Earnings per share:
(1) Basic earnings per share
(2) Diluted earnings per share
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
5. Consolidated Cash Flow Statement
In RMB
Item H1 2021 H1 2020
1. Net cash flow from business
operations:
Cash received from sales of
1,573,340,053.10 1,154,804,074.94
products and providing of services
Net increase of customer deposits
and capital kept for brother company
Net increase of loans from central
bank
Net increase of inter-bank loans
from other financial bodies
Cash received against original
insurance contract
Net cash received from reinsurance
business
Net increase of client deposit and
investment
Cash received as interest,
processing fee, and commission
Net increase of inter-bank fund
received
Net increase of repurchasing
business
Net cash received from trading
securities
Tax refunded 16,480,293.15 3,703,306.32
Other cash received from business
91,747,818.37 213,986,261.22
operation
Sub-total of cash inflow from business
1,681,568,164.62 1,372,493,642.48
operations
Cash paid for purchasing products
1,361,468,797.85 996,468,687.27
and services
Net increase of client trade and
advance
Net increase of savings in central
bank and brother company
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Cash paid for original contract
claim
Net increase in funds dismantled
Cash paid for interest, processing
fee and commission
Cash paid for policy dividend
Cash paid to and for the staff 196,896,028.86 168,329,630.62
Taxes paid 431,724,633.10 69,056,612.37
Other cash paid for business
192,403,249.81 277,565,976.54
activities
Sub-total of cash outflow from business
2,182,492,709.62 1,511,420,906.80
operations
Cash flow generated by business
-500,924,545.00 -138,927,264.32
operations, net
2. Cash flow generated by investment:
Cash received from investment
2,224,594,891.08 2,516,455,357.62
recovery
Cash received as investment profit 2,754,435.58 9,253,861.27
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 332,717.49
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash
250.00
received
Sub-total of cash inflow generated from
2,227,682,044.15 2,525,709,468.89
investment
Cash paid for construction of fixed
assets, intangible assets and other 54,321,772.94 69,468,255.88
long-term assets
Cash paid as investment 2,167,460,000.00 2,516,610,000.00
Net increase of loan against pledge
Net cash paid for acquiring
125,388,100.00
subsidiaries and other operational units
Other cash paid for investment 1,323,355.15
Subtotal of cash outflows 2,348,493,228.09 2,586,078,255.88
Cash flow generated by investment
-120,811,183.94 -60,368,786.99
activities, net
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
3. Cash flow generated by financing
activities:
Cash received from investment
Incl. Cash received from
investment attracted by subsidiaries
from minority shareholders
Cash received from borrowed
1,220,000,000.00 2,304,697,876.18
loans
Other cash received from financing
activities
Subtotal of cash inflow from financing
1,220,000,000.00 2,304,697,876.18
activities
Cash paid to repay debts 445,249,952.00 1,813,978,153.39
Cash paid as dividend, profit, or
64,069,929.56 128,588,570.23
interests
Incl. Dividend and profit paid by
4,560,100.00
subsidiaries to minority shareholders
Other cash paid for financing
529,360,479.34 281,298,965.99
activities
Subtotal of cash outflow from financing
1,038,680,360.90 2,223,865,689.61
activities
Net cash flow generated by financing
181,319,639.10 80,832,186.57
activities
4. Influence of exchange rate changes
-671,353.77 1,284,254.96
on cash and cash equivalents
5. Net increase in cash and cash
-441,087,443.61 -117,179,609.78
equivalents
Plus: Balance of cash and cash
1,028,386,529.73 730,933,482.19
equivalents at the beginning of term
6. Balance of cash and cash equivalents
587,299,086.12 613,753,872.41
at the end of the period
6. Cash Flow Statement of the Parent Company
In RMB
Item H1 2021 H1 2020
1. Net cash flow from business
operations:
Cash received from sales of 10,393,331.14 8,683,073.96
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
products and providing of services
Tax refunded 232,652.87
Other cash received from business
2,246,619,631.82 2,914,427,921.50
operation
Sub-total of cash inflow from business
2,257,012,962.96 2,923,343,648.33
operations
Cash paid for purchasing products
342,534.67 406,441.27
and services
Cash paid to and for the staff 10,905,880.26 9,739,820.05
Taxes paid 3,555,895.62 793,263.98
Other cash paid for business
2,367,856,652.84 2,553,029,078.24
activities
Sub-total of cash outflow from business
2,382,660,963.39 2,563,968,603.54
operations
Cash flow generated by business
-125,648,000.43 359,375,044.79
operations, net
2. Cash flow generated by investment:
Cash received from investment
382,800,000.00 562,800,000.00
recovery
Cash received as investment profit 33,976,138.71 338,561.17
Net cash retrieved from disposal of
fixed assets, intangible assets, and other
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash
received
Sub-total of cash inflow generated from
416,776,138.71 563,138,561.17
investment
Cash paid for construction of fixed
assets, intangible assets and other 239,020.66 48,767.89
long-term assets
Cash paid as investment 382,800,000.00 562,800,000.00
Net cash paid for acquiring
subsidiaries and other operational units
Other cash paid for investment
Subtotal of cash outflows 383,039,020.66 562,848,767.89
Cash flow generated by investment 33,737,118.05 289,793.28
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
activities, net
3. Cash flow generated by financing
activities:
Cash received from investment
Cash received from borrowed
300,000,000.00 500,000,000.00
loans
Other cash received from financing
activities
Subtotal of cash inflow from financing
300,000,000.00 500,000,000.00
activities
Cash paid to repay debts 300,000,000.00 810,000,000.00
Cash paid as dividend, profit, or
8,748,888.89 71,233,278.75
interests
Other cash paid for financing
99,998,965.99
activities
Subtotal of cash outflow from financing
308,748,888.89 981,232,244.74
activities
Net cash flow generated by financing
-8,748,888.89 -481,232,244.74
activities
4. Influence of exchange rate changes
-78,890.92
on cash and cash equivalents
5. Net increase in cash and cash
-100,659,771.27 -121,646,297.59
equivalents
Plus: Balance of cash and cash
204,578,995.78 175,341,953.63
equivalents at the beginning of term
6. Balance of cash and cash equivalents
103,919,224.51 53,695,656.04
at the end of the period
7. Statement of Change in Owners’ Equity (Consolidated)
Amount of the Current Term
In RMB
H1 2021
Owners' Equity Attributable to the Parent Company
Total
Other equity tools Other Minor
Less: Specia Comm of
Item Share Capital miscell Surplu Retain shareh
Shares l on risk Subtot owners
Prefe Perpe olders'
capita Other reserve aneous s ed Others
rred tual in reserve provisi al '
l s s incom reserve profit equity
share bond stock s ons equity
e
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
1,088
1. Balance at 11,459 42,748 106,78 4,215, 5,380, 66,538 5,447,
,278, 2,078,
the end of last ,588.4 ,530.1 3,436. 005,54 857,15 ,836.0 395,99
951.0 167.63
year 0 2 96 1.52 5.39 9 1.48
0
Plus:
Changes in
accounting
policies
Correction of
previous errors
11,521 12,801
Consolidation 9,000, 2,521, 1,280,
,701.0 ,890.0
of entities under 000.00 701.04 189.00
4 4
common control
Others
1,088
2. Balance at 20,459 42,748 106,78 4,217, 5,392, 67,819 5,460,
,278, 2,078,
the beginning of ,588.4 ,530.1 3,436. 527,24 378,85 ,025.0 197,88
951.0 167.63
current year 0 2 96 2.56 6.43 9 1.52
0
3. Change
amount in the -14,4 101,75 -42,74 -106,7 27,559
-1,460. 87,380 110,69 138,25
current period 04,72 1,783. 8,530. 83,436 ,478.8
74 ,887.7 1,580. 1,058.
(“-“ for 4.00 91 12 .96 1
5 08 89
decrease)
111,48 111,48 115,16
(1) Total of -1,460. 3,675,
8,701. 7,240. 2,616.
misc. incomes 74 375.75
33 59 34
(2) Investment
-14,4 -42,74
or decreasing of -28,34
04,72 8,530.
capital by 3,806.
4.00 12
owners 12
1. Common -14,4 -42,74
-28,34
shares invested 04,72 8,530.
3,806.
by owners 4.00 12
12
2. Capital
contributed by
18
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
other equity
instrument
holders
3. Amount of
shares paid and
accounted as
owners' equity
4. Others
(3) Profit
allotment
1. Provision of
surplus reserves
2. Common risk
provision
3. Distribution
to owners (or
shareholders)
4. Others
(4) Internal
carry-over of
owners' equity
1. Capitalizing
of capital
reserves (or
share capital)
2. Capitalizing
of surplus
reserves (or
share capital)
3. Surplus
reserves used to
cover losses
4. Retained gain
transferred due
to change in set
benefit program
5. Other
miscellaneous
income
6. Others
19
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
(5) Special
reserves
1. Provided this
year
2. Used this
period
101,75 -78,43 -24,10 23,884 23,088
-795,6
(6) Others 1,783. 9,630. 7,813. ,103.0 ,442.5
60.51
91 84 58 6 5
1,073
4. Balance at 122,21 4,304,
,874, 2,076, 5,503, 95,378 5,598,
the end of this 1,372. 908,13
227.0 706.89 070,43 ,503.9 448,94
period 31 0.31
0 6.51 0 0.41
Amount of the Previous Term
In RMB
H1 2020
Owners' Equity Attributable to the Parent Company
Other equity tools Other Minor
Less: Specia Comm Total of
Item Share Capital miscell Surplu Retain shareho
Shares l on risk Subtot owners'
Prefe Perp lders'
capita Other reserve aneous s ed Others
in reserve provisi al equity
rred etual equity
l s s incom reserve profit
share bond stock s ons
e
1,123
1. Balance at 159,80 3,898, 5,182, 5,231,2
,384, 1,454, -475,4 48,410,
the end of last 5,930. 626,17 795,07 05,089.
189.0 191.59 09.25 009.60
year 34 7.99 9.67 27
0
Plus:
Changes in
accounting
policies
Correction of
previous errors
18,026
Consolidation 9,000, 9,026, 2,002,9 20,029,
,682.6
of entities 000.00 682.67 64.74 647.41
7
under common
20
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
control
Others
1,123
2. Balance at 10,454 159,80 3,907, 5,200, 5,251,2
,384, -475,4 50,412,
the beginning ,191.5 5,930. 652,86 821,76 34,736.
189.0 09.25 974.34
of current year 9 34 0.66 2.34 68
0
3. Change
amount in the -35,1 -64,28 93,370
940,93 -5,074, 73,461. -5,000,
current period 05,23 0,649. ,833.5
3.00 120.71 94 658.77
(“-“ for 8.00 28 7
decrease)
147,78 148,72
(1) Total of 940,93 73,461. 148,799
4,781. 5,714.
misc. incomes 3.00 94 ,176.06
12 12
(2) Investment
-35,1 -64,28 -99,38
or decreasing -99,385
05,23 0,649. 5,887.
of capital by ,887.28
8.00 28 28
owners
1. Common -35,1 -64,28 -99,38
-99,385
shares invested 05,23 0,649. 5,887.
,887.28
by owners 8.00 28 28
2. Capital
contributed by
other equity
instrument
holders
3. Amount of
shares paid and
accounted as
owners' equity
4. Others
-54,41 -54,41
(3) Profit -54,413
3,947. 3,947.
allotment ,947.55
55 55
1. Provision of
surplus reserves
2. Common
risk provision
3. Distribution -54,41 -54,41 -54,413
21
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
to owners (or 3,947. 3,947. ,947.55
shareholders) 55 55
4. Others
(4) Internal
carry-over of
owners' equity
1. Capitalizing
of capital
reserves (or
share capital)
2. Capitalizing
of surplus
reserves (or
share capital)
3. Surplus
reserves used to
cover losses
4. Retained
gain transferred
due to change
in set benefit
program
5. Other
miscellaneous
income
6. Others
(5) Special
reserves
1. Provided this
year
2. Used this
period
(6) Others
1,088
4. Balance at 10,454 95,525 4,001, 5,195, 5,246,2
,278, 465,52 50,486,
the end of this ,191.5 ,281.0 023,69 747,64 34,077.
951.0 3.75 436.28
period 9 6 4.23 1.63 91
0
8. Statement of Change in Owners’ Equity (Parent Company)
Amount of the Current Term
22
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
In RMB
H1 2021
Other equity tools Other
Less: Total of
Item Share Preferr Perpet Capital miscella Special Surplus Retaine
Shares in Others owners'
capital ed ual Others reserves neous reserves reserve d profit
stock equity
share bond income
1,088,2 1,282,9
1. Balance at the 360,835. 42,748,5 -371,129 106,783, 2,435,215,
78,951. 11,974.
end of last year 52 30.12 .71 436.96 538.03
00 38
Plus:
Changes in
accounting
policies
Correction of
previous errors
Others
2. Balance at the 1,088,2 1,282,9
360,835. 42,748,5 -371,129 106,783, 2,435,215,
beginning of 78,951. 11,974.
52 30.12 .71 436.96 538.03
current year 00 38
3. Change
amount in the
-14,404 -42,748, 1,509,10 -28,343, 26,418, 27,927,30
current period
,724.00 530.12 2.69 806.12 197.73 0.42
(“-“ for
decrease)
(1) Total of misc. 1,509,10 26,418, 27,927,30
incomes 2.69 197.73 0.42
(2) Investment or
decreasing of -14,404 -42,748, -28,343,
0.00
capital by ,724.00 530.12 806.12
owners
1. Common
-14,404 -42,748, -28,343,
shares invested 0.00
,724.00 530.12 806.12
by owners
2. Capital
contributed by
other equity 0.00
instrument
holders
3. Amount of 0.00
23
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
shares paid and
accounted as
owners' equity
4. Others 0.00
(3) Profit
0.00
allotment
1. Provision of
0.00
surplus reserves
2. Distribution to
owners (or 0.00 0.00
shareholders)
3. Others 0.00
(4) Internal
carry-over of 0.00
owners' equity
1. Capitalizing
of capital
0.00
reserves (or
share capital)
2. Capitalizing
of surplus
0.00
reserves (or
share capital)
3. Surplus
reserves used to 0.00
cover losses
4. Retained gain
transferred due
0.00
to change in set
benefit program
5. Other
miscellaneous 0.00
income
6. Others 0.00
(5) Special
0.00
reserves
1. Provided this
0.00
year
2. Used this
0.00
period
24
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
(6) Others 0.00
4. Balance at the 1,073,8 1,309,3
360,835. 1,137,97 78,439,6 2,463,142,
end of this 74,227. 30,172.
52 2.98 30.84 838.45
period 00 11
Amount of the Previous Term
In RMB
H1 2020
Other equity tools Other
Less: Total of
Item Share Preferr Perpet Capital miscella Special Surplus Retained
Shares Others owners'
capital ed ual Others reserves neous reserves reserve profit
in stock equity
share bond income
1. Balance at 1,123,
360,835 1,287,6 159,805 1,236,002 2,520,841,1
the end of last 384,18
.52 29.38 ,930.34 ,518.79 03.03
year 9.00
Plus:
Changes in
0.00
accounting
policies
Correction of 0.00
previous errors
0.00
Others
2. Balance at 1,123,
360,835 1,287,6 159,805 1,236,002 2,520,841,1
the beginning 384,18 0.00
.52 29.38 ,930.34 ,518.79 03.03
of current year 9.00
3. Change
amount in the -35,10
-64,280, -64,596,9 -163,982,79
current period 5,238.
649.28 04.01 1.29
(“-“ for 00
decrease)
(1) Total of -10,182,9 -10,182,956
misc. incomes 56.46 .46
(2) Investment
-35,10
or decreasing of -64,280, -99,385,887
5,238.
capital by 649.28 .28
00
owners
1. Common -35,10
-64,280, -99,385,887
shares invested 5,238.
649.28 .28
by owners 00
25
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
2. Capital
contributed by
other equity 0.00
instrument
holders
3. Amount of
shares paid and
0.00
accounted as
owners' equity
4. Others 0.00
(3) Profit -54,413,9 -54,413,947
allotment 47.55 .55
1. Provision of
0.00
surplus reserves
2. Distribution
-54,413,9 -54,413,947
to owners (or
47.55 .55
shareholders)
3. Others 0.00
(4) Internal
carry-over of 0.00
owners' equity
1. Capitalizing
of capital
0.00
reserves (or
share capital)
2. Capitalizing
of surplus
0.00
reserves (or
share capital)
3. Surplus
reserves used to 0.00
cover losses
4. Retained gain
transferred due
0.00
to change in set
benefit program
5. Other
miscellaneous 0.00
income
6. Others 0.00
26
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
(5) Special
0.00
reserves
1. Provided this
0.00
year
2. Used this
0.00
period
(6) Others 0.00
4. Balance at 1,088,
360,835 1,287,6 95,525, 1,171,405 2,356,858,3
the end of this 278,95
.52 29.38 281.06 ,614.78 11.74
period 1.00
III. General Information
China Fangda Group Co., Ltd. (hereinafter referred to as "the Company") was approved in October 1995 by the General Office
of the Shenzhen Municipal People's Government with the letter of Shenfu Office (1995) No. 194, in the original "Shenzhen Fangda
Building Materials Co., Ltd." on the basis of the establishment of the fundraising method. The unified social credit code is:
91440300192448589C; registered address: Fangda Technology Building, Keji South 12th Road, South District, High-tech
Industrial Park, Nanshan District, Shenzhen. Mr. XiongJianming is the legal representative.
The Company issued foreign currency shares (B shares) and local currency shares (A shares) and listed in November 1995 and
April 1996 respectively in Shenzhen Stock Exchange. The Company received the Reply to the Non-public Share Issuance of Fangda
China Group Co., Ltd. (CSRC License [2016] No.825) to allow the Company to conduct non-public issuance of 32,184,931 A-shares
in June 2016. According to the 2016 Annual Profit Allocation Scheme, which was approved by the 2016 Annual Shareholders'
Congress, the Company has a total share capital of 789, 094, 836 shares as the basis and a capital reserve fund of 5 shares per 10
shares to all shareholders. The registered capital at the end of 2017 was RMB 1,183,642,254.00. The Company repurchased and
cancelled 28,160,568.00 B shares in August 2018, 32,097,497.00 B shares in January 2019, 35,105,238.00 B shares in May 2020,
14404724.00 B shares in July-September 2020 and cancelled in April 2021. The existing registered capital is RMB1,073,874,227.00
yuan.
The Company has established a corporate governance structure that comprises shareholders’ meeting, board
of directors and supervisory committee. Currently, the Company sets up the President Office, Administrative
Department, HR Department, Enterprise Management Department, Financial Department, Audit and Supervisory
Department, Securities Department, Technology Innovation Department and IT Department and has established
subsidiaries including Fangda Decoration, FangdaChuangzhi, Fangda New Material, Fangda Property and Fangda New
Energy.
The business nature and main business operations of the Company and subsidiaries (“the Group”) include (1) production and
sales of curtain wall materials, design, production and installation of construction curtain walls; (2) assembly and production of
subway screen doors; (3) development and operation of real estate projects on land, of which rights have been obtained lawfully; (4)
R&D, installation and sales of PV devices, design and installation of PV power plants.
Date of financial statement approval: This financial statement is approved by the Board of Directors of the Company on August
16, 2021.
The Company in the current period includes a total of 28 subsidiaries, of which 1 have been added this year and 2 have been reduced
this year. For details, please refer to "Note 6. Change of the scope of merger" and "Note 9. Rights and Interests in Other Subjects".
27
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
IV. Basis for the preparation of financial statements
1. Preparation basis
The Company prepares the financial statements based on continuous operation and according to actual transactions
and events, with figures confirmed and measured in compliance with the Accounting Standards for Business
Enterprises and other specific account standards, application guide and interpretations. The Company has also
disclosed related financial information according to the requirement of the Regulations of Information Disclosure No.15 – General
Provisions for Financial Statements (Revised in 2014) issued by the CSRC.
2. Continuous operation
The Company assessed the continuing operations capability of the Company for the 12 months from the end of the reporting period.
No matters were found that would affect the Company's ability to continue as a going concern. It is reasonable for the Company to
prepare financial statements based on continuing operations.
V. Significant Account Policies and Estimates
Specific accounting policy and estimate prompt:
The following major accounting policies and accounting estimates shall be formulated in accordance with the
accounting standards of the enterprise. Unmentioned operations are carried out in accordance with the relevant
accounting policies in the enterprise accounting standards.
1. Statement of compliance to the Enterprise Accounting Standard
These financial statements meet the requirements of the Accounting Standards for Business Enterprises and truly
and fully reflect the Company’s financial status, performance result, changes in shareholders’ equity and cash
flows.
2. Fiscal Period
The Company's fiscal year starts on January 1 and ends on December 31 of the Gregorian calendar.
3. Operation period
Our normal business cycle is one year
4. Bookkeeping standard money
The Company's bookkeeping standard currency is Renminbi, and overseas subsidiaries are based on the currency
of the main economic environment in which they operate.
5. Accounting treatment of the entities under common and different control
(1) Consolidation of entities under common control
28
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
The assets and liabilities acquired by the Company in a business combination are measured at the book value
of the combined party in the consolidated financial statements of the ultimate controlling party on the date
of combination. Among them, if the accounting policy adopted by the merger party is different from that adopted
by the Company before the merger, the accounting policy is unified based on the principle of importance, that
is, the book value of the assets and liabilities of the merger party is adjusted according to the accounting
policy of the Company. If there is a difference between the book value of the net assets acquired by the Company
in the business combination and the book value of the consideration paid, first adjust the balance of the capital
reserve (capital premium or equity premium), the balance of the capital reserve (capital premium or equity premium)
If it is insufficient to offset, the surplus reserve and undistributed profits will be offset in sequence.
See Note V, 6 for the accounting treatment method of business combination under the same control through step-by-step
transaction.
(2) Consolidation of entities under different control
All identifiable assets and liabilities acquired by the Company during the merger shall be measured at its
fair value on the date of purchase. Among them, if the accounting policy adopted by the merger party is different
from that adopted by the Company before the merger, the accounting policy is unified based on the principle of
importance, that is, the book value of the assets and liabilities of the merger party is adjusted according to
the accounting policy of the Company. The merger cost of the Company on the date of purchase is greater than
the fair value of the assets and liabilities recognized by the purchaser in the merger, and is recognized as
goodwill. If the merger cost is less than the difference between the identifiable assets and the fair value of
the liabilities obtained by the purchaser in the enterprise merger, the merger cost and the fair value of the
identifiable assets and the liabilities obtained by the purchaser in the enterprise merger are reviewed, and
the merger cost is still less than the fair value of the identifiable assets and liabilities obtained by the
purchaser after the review, the difference is considered as the profit and loss of the current period of the
merger.
See Note V, 6 for the accounting treatment method of business combination under the same control through step-by-step
transaction.
(3) Treatment of related transaction fee in enterprise merger
Agency expenses and other administrative expenses such as auditing, legal consulting, or appraisal services
occurred relating to the merger of entities are accounted into current income account when occurred. The
transaction fees of equity certificates or liability certificates issued by the purchaser for payment for the
acquisition are accounted at the initial amount of the certificates.
6. Preparation of Consolidated Financial Statements
(1) Determination of consolidation scope
The consolidated scope of the consolidated financial statements is determined on a control basis and includes
not only subsidiaries determined on the basis of voting rights (or similar voting rights) themselves or in
conjunction with other arrangements, but also structured subjects determined on the basis of one or more
contractual arrangements.
Control means the power possessed by the Company on invested entities to share variable returns by
participating in related activities of the invested entities and to impact the amount of the returns by using
the power. The subsidiary company is the subject controlled by the Company (including the enterprise, the divisible
part of the invested unit and the structured subject controlled by the enterprise, etc.). The structured subject
29
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
is the subject which is not designed to determine the controlling party by taking the voting right or similar
right as the decisive factor.
(2) Preparation of Consolidated Financial Statements
The Company prepares consolidated financial statements based on the financial statements of itself and its
subsidiaries and based on other relevant information.
The Company compiles consolidated financial statements, regards the whole enterprise group as an accounting
entity, reflects the overall financial status, operating results and cash flow of the enterprise group according
to the confirmation, measurement and presentation requirements of the relevant enterprise accounting standards,
and the unified accounting policy and accounting period.
① Merge the assets, liabilities, owner's rights and interests, income, expenses and cash flow of parent
company and subsidiary company.
② Offset the long-term equity investment of the parent company to the subsidiary company and the share
of the parent company in the ownership rights of the subsidiary company.
③ Offset the influence of internal transaction between parent company, subsidiary company and subsidiary
company. If an internal transaction indicates that the relevant asset has suffered an impairment loss, the part
of the loss shall be confirmed in full.
④ adjust the special transaction from the angle of enterprise group.
(3) Processing of subsidiaries during the reporting period
① Increase of subsidiaries or business
A. Subsidiary or business increased by business combination under the same control
(a) When preparing the consolidated balance sheet, adjust the opening number of the consolidated balance sheet and adjust the
related items of the comparative statement. The same report entity as the consolidated balance sheet will exist from the time of the
final control party.
(b) When preparing the consolidated cash flow statement, the cash flows of the subsidiary and the business combination from
the beginning of the current period to the end of the reporting period are included in the consolidated cash flow statement, and the
related items of the comparative statement are adjusted, which is regarded as the combined report body since the final The controller
has been there since the beginning of control.
(c) When preparing the consolidated cash flow statement, the cash flows of the subsidiary and the business combination from
the beginning of the current period to the end of the reporting period are included in the consolidated cash flow statement, and the
related items of the comparative statement are adjusted, which is regarded as the combined report body since the final The controller
has been there since the beginning of control.
B. Subsidiaries or businesses added by business combinations not under the same control
(a) When preparing the consolidated balance sheet, the opening number of the consolidated balance sheet is not adjusted.
(b) When preparing the consolidated profit statement, the income, expense and profit of the subsidiary company and the
business Purchase date and Closing balance shall be included in the consolidated profit statement.
(c) When the consolidated cash flow statement is prepared, the cash flow from the purchase date of the subsidiary to the end of
the reporting period is included in the consolidated cash flow statement.
② Disposal of subsidiaries or business
(A) When preparing the consolidated balance sheet, the opening number of the consolidated balance sheet is not adjusted.
B. When preparing the consolidated profit statement, the income, expense and profit of the subsidiary company and the
business opening and disposal date shall be included in the consolidated profit statement.
C. When the consolidated cash flow statement is prepared, the cash flow from the Beginning of the period of the subsidiary to
the end of the reporting period is included in the consolidated cash flow statement.
(4) Special considerations in consolidation offsets
30
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
① The long-term equity investment held by a subsidiary company shall be regarded as the inventory shares of the Company as
a subtraction of the owner's rights and interests, which shall be listed under the item of "subtraction: Stock shares" under the item of
owner's rights and interests in the consolidated balance sheet.
The long-term equity investments held by the subsidiaries are offset by the shares of the shareholders of
the subsidiaries.
② The "special reserve" and "general risk preparation" projects, because they are neither real capital (or share capital) nor
capital reserve, but also different from the retained income and undistributed profits, are restored according to the ownership of the
parent company after the long-term equity investment is offset by the ownership rights and interests of the subsidiary company.
③ If there is a temporary difference between the book value of assets and liabilities in the consolidated
balance sheet and the taxable basis of the taxpayer due to the offset of the unrealized internal sales gain or
loss, the deferred income tax asset or the deferred income tax liability is confirmed in the consolidated balance
sheet, and the income tax expense in the consolidated profit statement is adjusted, with the exception of the
deferred income tax related to the transaction or event directly included in the owner's equity and the merger
of the enterprise.
④ The unrealized internal transaction gains and losses incurred by the Company from selling assets to subsidiaries shall be
fully offset against the "net profit attributable to the owners of the parent company". The unrealized internal transaction gains and
losses arising from the sale of assets by the subsidiary to the Company shall be offset between the “net profit attributable to the
owners of the parent company” and the “minority shareholder gains and losses” in accordance with the Company’s distribution
ratio to the subsidiary. The unrealized internal transaction gains and losses arising from the sale of assets between subsidiaries shall
be offset between the "net profit attributable to the owners of the parent company" and the "minority shareholders' gains and losses"
in accordance with the Company's distribution ratio to the seller's subsidiary .
⑤ If the current loss shared by the minority shareholders of the subsidiary exceeds the share of the minority
shareholders in the owner ’s equity of the subsidiary at the beginning of the period, the balance should still
be offset against the minority shareholders ’equity.
(5) Accounting treatment of special transactions
① Purchase minority shareholders' equity
The Company purchases the shares of the subsidiaries owned by the minority shareholders of the subsidiaries.
In the individual financial statements, the investment costs of the newly acquired long-term investments of the
minority shares shall be measured at the fair value of the price paid. In the consolidated financial statements,
the difference between the newly acquired long-term equity investment due to the purchase of minority equity
and the share of net assets that should be continuously calculated by the subsidiary since the purchase date
or the merger date should be adjusted according to the new shareholding ratio. The product (capital premium or
equity premium), if the capital reserve is insufficient to offset, the surplus reserve and undistributed profits
are offset in turn.
② Step-by-step acquisition of control of the subsidiary through multiple transactions
A. Enterprise merger under common control through multiple transactions
On the date of the merger, the Company determines the initial investment cost of the long-term equity
investment in the individual financial statements based on the share of the subsidiary ’s net assets that should
be enjoyed after the merger in the final controller ’s consolidated financial statements; the initial investment
cost and the The difference between the book value of the long-term equity investment before the merger plus
the book value of the consideration paid for new shares acquired on the merger date, the capital reserve (capital
premium or equity premium) is adjusted, and the capital reserve (capital premium or equity premium) is insufficient
to offset Reduced, in turn offset the surplus reserve and undistributed profits.
In consolidated financial statements, assets and liabilities obtained by the merging party from the merged party should be
31
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
measured at the book value in the final controlling party’s consolidated financial statements other than the adjustment made due to
differences in accounting policies; adjust the capital surplus (share premium) according to the difference between the initial
investment cost and the book value of the held investment before merger plus the book value of the consideration paid on the merger
date. Where the capital surplus falls short, the retained income should be adjusted.
If the merging party holds the equity investment before acquiring the control of the merged party and is
accounted for according to the equity method, the date of acquiring the original equity and the merging party
and the merged party are in the same party's final control from the later date to the merger date The relevant
gains and losses, other comprehensive income and other changes in owner's equity have been confirmed between
them, and the retained earnings at the beginning of the comparative statement period should be offset separately.
B. Enterprise merger not under common control through multiple transactions
On the merger day, in individual financial statements, the initial investment cost of the long-term equity
investment on the merger day is based on the book value of the long-term equity investment previously held plus
the sum of the additional investment costs on the merger day.
In the consolidated financial statements, the equity of the purchaser held prior to the date of purchase
is revalued according to the fair value of the equity at the date of purchase, and the difference between the
fair value and its book value is credited to the current investment income; If the shares held by the purchaser
prior to the date of purchase involve other consolidated gains under the equity law accounting, the other
consolidated gains related thereto shall be converted to the current gains on the date of purchase, with the
exception of the other consolidated gains arising from the remeasurement of the net assets or net liabilities
of the merged party. The Company disclosed in the notes the fair value of the equity of the purchased party held
before the purchase date and the amount of related gains or losses remeasured according to the fair value.
(3) The Company disposes of long-term equity investment in subsidiaries without losing control
The parent company partially disposes of the long-term equity investment in the subsidiary company without
losing control. In the consolidated financial statements, the disposal price corresponds to the disposal of the
long-term equity investment. The difference between the shares is adjusted for the capital reserve (capital
premium or equity premium). If the capital reserve is insufficient to offset, the retained earnings are adjusted.
④ The Company disposes of long-term equity investment in subsidiaries and loses control
A. One transaction disposition
If the Company loses control over the Invested Party due to the disposal of part of the equity investment,
it shall remeasure the remaining equity according to its fair value at the date of loss of control when compiling
the consolidated financial statement. The sum of the consideration obtained from the disposal of equity and the
fair value of the remaining equity minus the difference between the share of the original subsidiary 's net assets
that should be continuously calculated from the purchase date or the merger date, calculated as the loss of control
The investment income of the current period.
Other comprehensive income and other owner's equity changes related to the equity investment of the atomic
company are transferred to the current profit and loss when the control is lost, except for other comprehensive
income arising from the remeasurement of the net benefits or net assets of the defined benefit plan by the
investee. .
B. Multi-transaction step-by-step disposition
In consolidated financial statements, you should first determine whether a step-by-step transaction is a "blanket transaction".
If the step-by-step transaction does not belong to a "package deal", in the individual financial statements, for each transaction
before the loss of control of the subsidiary, the book value of the long-term equity investment corresponding to each disposal of
equity is carried forward, the price received and the disposal The difference between the book value of the long-term equity
investment is included in the current investment income; in the consolidated financial statements, it should be handled in accordance
32
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
with the relevant provisions of "the parent company disposes of the long-term equity investment in the subsidiary without losing
control."
If a step-by-step transaction belongs to a "blanket transaction", the transaction shall be treated as a transaction that disposes of
the subsidiary and loses control; In individual financial statements, the difference between each disposal price before the loss of
control and the book value of the long-term equity investment corresponding to the equity being disposed of is first recognized as
other consolidated gains and then converted to the current loss of control at the time of the loss of control; In the consolidated
financial statements, for each transaction prior to the loss of control, the difference between the disposition of the price and the
disposition of the investment corresponding to the share in the net assets of the subsidiary shall be recognized as other consolidated
gains and shall, at the time of the loss of control, be transferred to the loss of control for the current period.
Where the terms, conditions, and economic impact of each transaction meet one or more of the following conditions, usually
multiple transactions are treated as a "package deal":
(a) These transactions were concluded at the same time or in consideration of mutual influence.
(b) These transactions can only achieve the business result as a whole;
(c) The effectiveness of one transaction depends the occurance of at least another transaction;
(d) A single transaction is not economic and is economic when considered together with other transactions.
(5) Proportion of minority shareholders in factor companies who increase capital and dilute ownership of
parent companies
Proportion of Others （ minority shareholders in factor companies who increase capital , dilute Subsidiaries
of parent companies. In the consolidated financial statements, the share of the parent company in the net book
assets of the former subsidiary of the capital increase is calculated according to the share ratio of the parent
company before the capital increase, the difference between the share and the net book assets of the latter
subsidiary after the capital increase is calculated according to the share ratio of the parent company, the capital
reserve (capital premium or capital premium), the capital reserve (capital premium or capital premium) is not
offset, and the retained income is adjusted.
7. Recognition of cash and cash equivalents
Cash refers to cash in stock and deposits that can be used for payment at any time. Cash equivalents refer to
investments with a short holding period (generally referring to expiry within three months from the date of
purchase), strong liquidity, easy to convert to a known amount of cash, and little risk of value change.
8.Foreign exchange business and foreign exchange statement translation
(1) Methods for determining conversion rates in foreign currency transactions
When the Company's foreign currency transactions are initially confirmed, they will be converted into the
bookkeeping standard currency at the spot exchange rate on the transaction date.
(2) Methods of conversion of foreign currency currencycurrency items on balance sheet days
At the balance sheet date, foreign currency items are translated on the spot exchange rate of the balance
sheet date. The exchange differences caused by the difference in exchange rates on the balance sheet date and
initial recognizing date or previous balance sheet date are included in the current profits and losses.
Non-monetary items accounted in foreign currency and on historical costs are exchanged with the spot exchange
rate on the transaction date. Non-monetary items accounted in foreign currency and on fair value are exchanged
with the spot exchange rate on the determination date of the fair value. The exchange difference between the
accounting standard-currency amount and the original accounting standard-currency amount are included in the
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
current profits and losses.
(3) Foreign currency statement conversion method
Prior to the conversion of the financial statements of an enterprise's overseas operations, the accounting
period and policy of the overseas operations should be adjusted to conform to the accounting period and policy
of the enterprise. The financial statements of the corresponding currency (other than the functional currency)
should be prepared according to the adjusted accounting policy and the accounting period. The financial statements
of the overseas operations should be converted according to the following methods:
① The assets and liabilities items in the balance sheet are translated at the spot exchange rate on the balance sheet date. Except
for the "undistributed profits" items, the owner's equity items are translated at the spot exchange rate when they occur.
② The income and expense items in the profit statement are converted at the spot exchange rate on the
transaction date or the approximate exchange rate of the spot exchange rate.
③ The foreign currency cash flow and the foreign subsidiary's cash flow are converted using the immediate
exchange rate or the approximate exchange rate at the date of the cash flow. The impact of exchange rate changes
on cash should be used as an adjustment item and presented separately in the cash flow statement.
④ During the preparation of the consolidated financial statements, the resulting foreign currency financial statement
conversion variance is presented separately under the owner's equity item in the consolidated balance sheet.
When foreign operations are disposed of and the control rights are lost, the difference in foreign currency
statements related to the overseas operations that are listed in the shareholders' equity items in the balance
sheet is transferred to the profit or loss for the current period, either in whole or in proportion to the disposal
of the foreign operations.
9. Financial instrument
Financial instrument refers to a company’s financial assets and contracts that form other units of financial
liabilities or equity instruments.
(1) Recognition and de-recognition of financial instrument
The Company recognizes a financial asset or liability when it becomes one party in the financial instrument
contract.
Financial asset is derecognized when:
① The contractual right to receive the cash flows of the financial assets is terminated;
② The financial asset is transferred and meets the following derecognition condition.
If the current obligation of a financial liability (or part of it) has been discharged, the Company
derecognises the financial liability (or part of the financial liability). When the Company (borrower) and lender
enter into an agreement to replace the original financial liabilities by undertaking new financial liabilities
and the contract terms for the new financial liabilities are essentially different from those for the original
one, the original financial liabilities will be derecognized and new financial liabilities will be recognized.
Where the Company makes substantial amendments to the contract terms of the original financial liability (or
part thereof), it shall terminate the original financial liability and confirm a new financial liability in
accordance with the amended terms.
Financial asset transactions in regular ways are recognized and de-recognized on the transaction date. The
conventional sale of financial assets means the delivery of financial assets in accordance with the contractual
terms and conditions, at the time set out in the regulations or market practices. Transaction date refers to
the date when the Company promises to buy or sell financial assets.
(2) Classification and subsequent measurement of financial assets
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
At initial recognition, the Company classifies financial assets into the following three categories based
on the business model of managing financial assets and the contractual cash flow characteristics of financial
assets: financial assets measured at amortized cost are measured at fair value and their changes are included
in other financial assets with current profit and loss and financial assets measured at fair value through profit
or loss. Unless the Company changes the business model for managing financial assets, in this case, all affected
financial assets are reclassified on the first day of the first reporting period after the business model changes,
otherwise the financial assets may not be initially confirmed.
Financial assets are measured at the fair value at the initial recognition. For financial assets measured
at fair value with variations accounted into current income account, related transaction expenses are accounted
into the current income. For other financial assets, the related transaction expenses are accounted into the
initial recognized amounts. Bills receivable and accounts receivable arising from the sale of commodities or
the provision of labor services that do not contain or do not consider significant financing components, the
Company performs initial measurement according to the transaction price defined by the income standard.
The subsequent measurement of financial assets depends on their classification:
① Financial assets measured at amortized cost
Financial assets that meet the following conditions at the same time are classified as financial assets
measured at amortized cost: The Company ’s business model for managing this financial asset is to collect
contractual cash flows as its goal; the contract terms of the financial asset stipulate that Cash flow is only
the payment of principal and interest based on the outstanding principal amount. For such financial assets, the
actual interest rate method is used for subsequent measurement according to the amortized cost. The gains or
losses arising from the termination of recognition, amortization or impairment based on the actual interest rate
method are included in the current profit and loss.
② Financial assets measured at fair value and whose changes are included in other comprehensive income
Financial assets that meet the following conditions at the same time are classified as financial assets
measured at fair value and their changes are included in other comprehensive income: The Company's business model
for managing this financial asset is to both target the collection of contractual cash flows and the sale of
financial assets. Objective; The contractual terms of the financial asset stipulate that the cash flow generated
on a specific date is only for the payment of principal and interest based on the outstanding principal amount.
For such financial assets, fair value is used for subsequent measurement. Except for impairment losses or gains
and exchange gains and losses recognized as current gains and losses, changes in the fair value of such financial
assets are recognized as other comprehensive income. Until the financial asset is derecognized, its accumulated
gains or losses are transferred to current gains and losses. However, the relevant interest income of the financial
asset calculated by the actual interest rate method is included in the current profit and loss.
The Company irrevocably chooses to designate a portion of non-tradable equity instrument investment as a
financial asset measured at fair value and whose variation is included in other consolidated income. Only the
relevant dividend income is included in the current profit and loss, and the variation of fair value is recognized
as other consolidated income.
③ Financial assets measured at fair value with variations accounted into current income account
The above financial assets measured at amortized cost and other financial assets measured at fair value
and whose changes are included in other comprehensive income are classified as financial assets measured at fair
value and whose changes are included in the current profit and loss. For such financial assets, fair value is
used for subsequent measurement, and all changes in fair value are included in current profit and loss.
(3) Classification and measurement of financial liabilities
The Company classifies financial liabilities into financial liabilities measured at fair value and their
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
changes included in the current profit and loss, loan commitments and financial guarantee contract liabilities
for loans below market interest rates, and financial liabilities measured at amortized cost.
The subsequent measurement of financial liabilities depends on their classification:
① Financial liabilities measured at fair value with variations accounted into current income account
Such financial liabilities include transactional financial liabilities (including derivatives that are
financial liabilities) and financial liabilities designated as at fair value through profit or loss. After the
initial recognition, the financial liabilities are subsequently measured at fair value. Except for the hedge
accounting, the gains or losses (including interest expenses) are recognized in profit or loss. However, for
the financial liabilities designated as fair value and whose variations are included in the profits and losses
of the current period, the variable amount of the fair value of the financial liability due to the variation
of credit risk of the financial liability shall be included in the other consolidated income. When the financial
liability is terminated, the cumulative gains and losses previously included in the other consolidated income
shall be transferred out of the other consolidated income and shall be included in the retained income.
② Loan commitments and financial security contractual liabilities
A loan commitment is a promise that the Company provides to customers to issue loans to customers with
established contract terms within the commitment period. Loan commitments are provided for impairment losses
based on the expected credit loss model.
A financial guarantee contract refers to a contract that requires the Company to pay a specific amount of
compensation to the contract holder who suffered a loss when a specific debtor is unable to repay the debt in
accordance with the original or modified debt instrument terms. Financial guarantee contract liabilities are
subsequently measured based on the higher of the loss reserve amount determined in accordance with the principle
of impairment of financial instruments and the initial recognition amount after deducting the accumulated
amortization amount determined in accordance with the revenue recognition principle.
③ Financial liabilities measured at amortized cost
After initial recognition, other financial liabilities are measured at amortized cost using the effective
interest method.
Except in special circumstances, financial liabilities and equity instruments are distinguished according
to the following principles:
① If the Company cannot unconditionally avoid delivering cash or other financial assets to fulfill a
contractual obligation, the contractual obligation meets the definition of financial liability. While some
financial instruments do not explicitly contain terms and conditions for the delivery of cash or other financial
assets, they may indirectly form contractual obligations through other terms and conditions.
If a financial instrument is required to be settled with or can be settled with the Company's own equity
instruments, the Company's own equity instrument used to settle the instrument needs to be considered as a
substitute for cash or other financial assets or for the holder of the instrument to enjoy the remaining equity
in the assets after all liabilities are deducted. If it is the former, the instrument is the financial liabilities
of the issuer; if it is the latter, the instrument is the equity instrument of the issuer. In some cases, a financial
instrument contract provides that the Company shall or may use its own instrument of interest, in which the amount
of a contractual right or obligation is equal to the amount of the instrument of its own interest which may be
acquired or delivered multiplied by its fair value at the time of settlement, whether the amount of the contractual
right or obligation is fixed or is based entirely or in part on a variation of a variable other than the market
price of the instrument of its own interest, such as the rate of interest, the price of a commodity or the price
of a financial instrument, the contract is classified as a financial liability.
(4) Derivative financial instruments and embedded derivatives
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Derivative financial instruments are initially measured at the fair value of the day when the derivative
transaction contract is signed, and are subsequently measured at their fair values. Derivative financial
instruments with a positive fair value are recognized as asset, and instruments with a negative fair value are
recognized as liabilities.
The gains and losses arising from the change in fair value of derivatives are directly included in the profits
and losses of the current period, except that the part of the cash flow that is valid in the hedge is included
in the other consolidated income and transferred out when the hedged item affects the gain and loss of the current
period.
For a hybrid instrument containing an embedded derivative instrument, if the principal contract is a
financial asset, the hybrid instrument as a whole applies the relevant provisions of the financial asset
classification. If the main contract is not a financial asset, and the hybrid instrument is not measured at fair
value and its changes are included in the current profit and loss for accounting, the embedded derivative does
not have a close relationship with the main contract in terms of economic characteristics and risks, and it is
If the instruments with the same conditions and exist separately meet the definition of derivative instruments,
the embedded derivative instruments are separated from the mixed instruments and treated as separate derivative
financial instruments. If the fair value of the embedded derivative on the acquisition date or the subsequent
balance sheet date cannot be measured separately, the hybrid instrument as a whole is designated as a financial
asset or financial liability measured at fair value and whose changes are included in the current profit or loss.
(5) Impairment of financial instruments
The Company shall confirm the preparation for loss on the basis of expected credit loss for financial assets
measured at amortization costs, creditor's rights investments measured at fair value, contractual assets, leasing
receivables, loan commitments and financial guarantee contracts, etc.
① Measurement of expected credit losses of accounts receivable
The expected credit loss refers to the weighted average of the credit losses of financial instruments that
are weighted by the risk of default. Credit loss refers to the difference between all contractual cash flows
receivable from the contract and all cash flows expected to be received by the Company at the original actual
interest rate, that is, the present value of all cash shortages. Among them, the financial assets which have
been purchased or born by the Company shall be discounted according to the actual rate of credit adjustment of
the financial assets.
The expected lifetime credit loss is the expected credit loss due to all possible default events during
the entire expected life of the financial instrument.
Expected credit losses in the next 12 months are expected to result from possible defaults in financial instruments within 12
months after the balance sheet date (or estimated duration of financial instruments if the expected duration is less than 12 months)
Credit losses are part of the expected lifetime credit loss.
On each balance sheet day, the Company measures the expected credit losses of financial instruments at
different stages. Where the credit risk has not increased significantly since the initial confirmation of the financial instrument, it
is in the first stage. The Company measures the preparation for loss according to the expected credit loss in the next 12 months.
Where the credit risk has increased significantly since the initial confirmation but the credit impairment has not occurred, the
financial instrument is in the second stage. Where a credit impairment has occurred since the initial confirmation of the financial
instrument, it shall be in the third stage, and the Company shall prepare for measuring the expected credit loss of the whole survival
period of the instrument.
For financial instruments with low credit risk on the balance sheet date, the Company assumes that the credit risk has not
increased significantly since the initial recognition, and measures the loss provision based on the expected credit losses in the next 12
months.
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
For financial instruments that are in the first and second stages and with lower credit risk, the Company
calculates interest income based on their book balances and actual interest rates without deduction for impairment
provision. For financial instruments in the third stage, interest income is calculated based on the amortized
cost and the actual interest rate after the book balance minus the provision for impairment.
Regarding bills receivable, accounts receivable and financing receivables, regardless of whether there is
a significant financing component, the Company measures the loss provision based on the expected credit losses
throughout the duration.
A Accounts receivable/contract assets
Where there is objective evidence of impairment, as well as other receivable instruments, receivables, other
receivables, receivables financing and long-term receivables applicable to individual assessments, separate
impairment tests are performed to confirm expected credit losses and prepare individual impairment. For notes
receivable, accounts receivable, other receivables, financing of receivables, long-term receivables, and
contract assets for which there is no objective evidence of impairment, or when individual financial assets cannot
be assessed at a reasonable cost, the Company divides bills receivable, accounts receivable, other receivables,
receivable financing, long-term receivables, and contract assets into several combinations based on credit risk
characteristics, and calculates expected credit losses on the basis of the combination. The basis for determining
the combination is as follows:
The basis for determining the combination of notes receivable is as follows:
Notes Receivable Combination1 Commercial Acceptance Bill
Notes Receivable Combination1 Commercial Acceptance Bill
For Notes receivable divided into portfolios, the Company refers to historical credit loss experience,
combined with current conditions and predictions of future economic conditions, and calculates through default
risk exposure and expected credit loss rate within the next 12 months or the entire duration Expected credit
losses.
The basis for determining the combination of accounts receivable is as follows:
Accounts receivable combination 1 Accounts receivable business
Accounts receivable combination 2 Real estate receivable business
Accounts receivable combination 3 Others receivable business
Other receivable portfolio 4 Receivables from related parties within the scope of consolidation
For the accounts receivable divided into a combination, the Company refers to the historical credit loss
experience, combined with the current situation and the forecast of the future economic situation, compiles the
account receivable age and the whole expected credit loss rate table, and calculates the expected credit loss.
The basis for determining the combination of other receivables is as follows:
Other receivable portfolio 1 Interest receivable
Portfolio of other receivables 2 Dividends receivable
Other combinations of receivables 3 Deposit and margin receivable
Other receivable portfolio 4 Receivable advances
Combination of other receivables 5 Value-added tax receivable is increased and refunded
Other receivable portfolio 6 Receivables from related parties within the scope of consolidation
Other receivables portfolio 7 Other receivables
For other receivables divided into portfolios, the Company refers to historical credit loss experience, combined with current
conditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit loss rate
within the next 12 months or the entire duration Expected credit losses.
The basis for determining the combination of receivables financing is as follows:
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Receivables financing portfolio 1 bank acceptance bill
For Notes receivable divided into portfolios, the Company refers to historical credit loss experience,
combined with current conditions and predictions of future economic conditions, and calculates through default
risk exposure and expected credit loss rate within the next 12 months or the entire duration Expected credit
losses.
The basis for determining the portfolio of contract assets is as follows:
Contract assets portfolio 1 conditional collection right of sales
Contract assets portfolio 2 Completed and unsettled project not meeting collection conditions
Contract assets portfolio 3 Quality guarantee deposit not meeting collection conditions
For contract assets divided into portfolios, the Company refers to historical credit loss experience,
combined with current conditions and predictions of future economic conditions, and calculates through default
risk exposure and expected credit loss rate within the next 12 months or the entire duration Expected credit
losses.
Other debt investment
For other receivables divided into portfolios, the Company refers to historical credit loss experience, combined with current
conditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit loss rate
within the next 12 months or the entire duration Expected credit losses.
② Lower credit risk
If the risk of default on financial instruments is low, the borrower’s ability to meet its contractual
cash flow obligations in the short term is strong, and even if the economic situation and operating environment
are adversely changed over a long period of time, it may not necessarily reduce the receivables' performance
of their contractual cash. The ability of the flow obligation, the financial instrument is considered to have
a lower credit risk.
③ Significant increase in credit risk
The Company compares the default probability of the financial instrument during the expected lifetime
determined by the balance sheet date with the default probability of the expected lifetime during the initial
confirmation to determine the relative probability of the default probability of the financial instrument during
the expected lifetime Changes to assess whether the credit risk of financial instruments has increased
significantly since initial recognition.
In determining whether the credit risk has increased significantly since the initial recognition, the Company
considers reasonable and evidenced information, including forward-looking information, that can be obtained
without unnecessary additional costs or effort. The information considered by the Company includes:
A. Significant changes in internal price indicators resulting from changes in credit risk;
B. Adverse changes in business, financial or economic conditions that are expected to cause significant changes in the debtor’s
ability to perform its debt service obligations;
C. Whether the actual or expected operating results of the debtor have changed significantly; whether the regulatory, economic
or technical environment of the debtor has undergone significant adverse changes;
D. Whether there is a significant change in the value of the collateral used as debt collateral or the guarantee provided by a third
party or the quality of credit enhancement. These changes are expected to reduce the debtor’s economic motivation for
repayment within the time limit specified in the contract or affect the probability of default;
E. Whether there is a significant change in the economic motivation that is expected to reduce the debtor's repayment according
to the contractual deadline;
F. Anticipated changes to the loan contract, including whether the expected violation of the contract may result in the
exemption or revision of contract obligations, granting interest-free periods, rising interest rates, requiring additional collateral or
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
guarantees, or making other changes to the contractual framework of financial instruments change;
G. Whether the expected performance and repayment behavior of the debtor has changed significantly;
H. Whether the contract payment is overdue for more than (including) 30 days.
Based on the nature of financial instruments, the Company assesses whether credit risk has increased
significantly on the basis of a single financial instrument or combination of financial instruments. When
conducting an assessment based on a combination of financial instruments, the Company can classify financial
instruments based on common credit risk characteristics, such as overdue information and credit risk ratings.
If the overdue period exceeds 30 days, the Company has determined that the credit risk of financial instruments has increased
significantly. Unless the Company does not have to pay excessive costs or efforts to obtain reasonable and warranted information, it
proves that although it has exceeded the time limit of 30 days agreed upon in the Contract, credit risks have not increased
significantly since the initial confirmation.
④ Financial assets with credit impairment
The Company assesses on the balance sheet date whether financial assets measured at amortized cost and credit
investments measured at fair value and whose changes are included in other comprehensive income have undergone
credit impairment. When one or more events that adversely affect the expected future cash flows of a financial
asset occur, the financial asset becomes a financial asset that has suffered a credit impairment. Evidence that
credit impairment has occurred in financial assets includes the following observable information:
Major financial difficulties have occurred to the issuer or the debtor; Breach of contract by the debtor,
such as payment of interest or default or overdue of principal; (B) The concession that the debtor would not
make under any other circumstances for economic or contractual considerations relating to the financial
difficulties of the debtor; The debtor is likely to be bankrupt or undertake other financial restructuring; The
financial difficulties of the issuer or debtor lead to the disappearance of the active market for the financial
asset; To purchase or generate a financial asset at a substantial discount, which reflects the fact that a credit
loss has occurred.
⑤ Presentation of expected credit loss measurement
In order to reflect the changes in the credit risk of financial instruments since the initial recognition,
the Company re-measures the expected credit losses on each balance sheet date, and the increase or reversal of
the loss provision resulting therefrom is included as an impairment loss or gain. Current profit and loss. For
financial assets measured at amortized cost, the loss allowance offsets the book value of the financial asset
listed on the balance sheet; for debt investments measured at fair value and whose changes are included in other
comprehensive income, the Company Recognition of its loss provisions in gains does not offset the book value
of the financial asset.
⑥ Canceled
If it is no longer reasonably expected that the contract cash flow of the financial assets will be fully
or partially recovered, the book balance of the financial assets will be directly reduced. Such write-off
constitute the derecognition of related financial assets. This usually occurs when the Company determines that
the debtor has no assets or sources of income that generate sufficient cash flow to cover the amount that will
be written down.
If the financial assets that have been written down are recovered in the future, the reversal of the impairment
loss is included in the profit or loss of the current period.
(6) Transfer of financial assets
The transfer of financial assets refers to the following two situations:
A. Transfer the contractual right to receive cash flow of financial assets to another party;
B. Transfers the financial assets to the other party in whole or in part, but reserves the contractual right to collect the cash flow
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
of the financial assets and undertakes the contractual obligation to pay the collected cash flow to one or more recipients.
① De-identification of transferred financial assets
Those who have transferred almost all risks and rewards in the ownership of financial assets to the transferee,
or have neither transferred nor retained almost all the risks and rewards in the ownership of financial assets,
but have given up control of the financial assets, terminate the confirmation The financial asset.
In determining whether control over the transferred financial asset has been waived, the actual capacity
of the transferor to sell the financial asset is determined. If the transferor is able to sell the transferred
financial assets wholly to a third party that does not have a relationship with them, and has no additional
conditions to limit the sale, it indicates ds has waived control over the financial assets.
The Company pays attention to the essence of financial asset transfer when judging whether financial asset
transfer meets the condition of financial asset termination.
If the overall transfer of financial assets meets the conditions for termination of confirmation, the
difference between the following two amounts is included in the current profit and loss:
A. Continuing identification of transferred Book value；
B. The sum of the amount received as a result of the transfer and the amount accrued as a result of the change in the fair value
of the transfer in respect of the termination recognized portion of the amount previously charged directly to the other consolidated
proceeds (the financial assets involved in the transfer are those classified in accordance with Article 18 of Enterprise Accounting
Standard No. 22 - Financial Instruments Recognition and Measurement as measured by the fair value and whose change is charged to
the other consolidated proceeds).
If the partial transfer of financial assets meets the conditions for derecognition, the book value of the
entire transferred financial assets will be included in the derecognized part and the unterminated part (in this
case, the retained service assets are regarded as part of the continued recognition of financial assets) Between
them, they are apportioned according to their respective relative fair values on the transfer date, and the
difference between the following two amounts is included in the current profit and loss:
A. Termination of the book value of the recognized portion on the date of derecognition;
B. The sum of the amount received as a result of the transfer and the amount accrued as a result of the change in the fair value
of the transfer in respect of the termination recognized portion of the amount previously charged to the other consolidated proceeds
(the financial assets involved in the transfer are those classified in accordance with Article 18 of Enterprise Accounting Standard No.
22 - Financial Instruments Recognition and Measurement as measured by the fair value and whose change is charged to the other
consolidated proceeds).
② Continue to be involved in the transferred financial assets
If neither transfer nor retain almost all the risks and rewards of the ownership of financial assets, and
have not given up control of the financial assets, the relevant financial assets should be confirmed according
to the extent of their continued involvement in the transferred financial assets, and the relevant liabilities
should be recognized accordingly.
The extent to which the transferred financial assets continue to be involved refers to the extent to which
the enterprise undertakes the risk or compensation of the value change of the transferred financial assets.
(III) Continuing identification of transferred financial assets
Where almost all risks and remuneration in relation to ownership of the transferred financial assets are
retained, the whole of the transferred financial assets shall continue to be recognized and the consideration
received shall be recognized as a financial liability.
The financial asset and the recognized related financial liabilities shall not offset each other. In the
subsequent accounting period, the enterprise shall continue to recognize the income (or gain) generated by the
financial asset and the costs (or losses) incurred by the financial liability.
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
(7) Deduction of financial assets and liabilities
Financial assets and financial liabilities should be listed separately in the balance sheet, and cannot
be offset against each other. However, if the following conditions are met, the net amount offset by each other
is listed in the balance sheet:
The Company has a statutory right to offset the confirmed amount, and such legal right is currently
enforceable;
The Company plans to settle the net assets or realize the financial assets and liquidate the financial
liabilities at the same time.
The transferring party shall not offset the transferred financial assets and related liabilities if it does
not meet the conditions for terminating the recognition.
(8) Recognition of fair value of Finance instruments
See Note V 34 (1) for the recognition of fair value of financial assets and liabilities）.
10. Notes receivable
See Chapter V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.
11. Account receivable
See Chapter V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.6 – Listed Companies Engaged in Decoration Business.
12. Receivable financing
See Chapter V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.
13. Other receivables
Methods for Determining Expected Credit Loss of Other Receivables and Accounting Processing Methods
See Chapter V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.
14. Inventories
(1) Classification of inventories
Inventory refers to the finished products or commodities held by the Company for sale in daily activities,
the products in process of production, the materials and materials consumed in the process of production or
providing labor services, including entrusted processing materials, raw materials, products in process, materials
in transit, stored goods, low value consumables, development costs, development products and contract performance
costs, etc.
(2) Valuation method for issuing inventory
Inventories are measured at cost when procured. Raw materials, products in process and commodity stocks
in transit are measured by the weighted average method.
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
The real estate business inventory mainly includes inventory materials, products under development,
completed development products, and development products intended to be sold but temporarily rented out. Inventory
is measured at the actual costs when the fixed assets are obtained The actual costs of development products include
land transfer payment, infrastructure and facility costs, installation engineering costs, borrows before
completion of the development and other costs during the development process. The special maintenance funds
collected in the first period are included in the development overheads. The actual costs of the development
product is priced using the separate pricing method.
(3) Inventory system
The Company inventory adopts the perpetual inventory system, counting at least once a year, the inventory
profit and loss amount is included in the current year's profit and loss.
(4) Recognition of inventory realizable value and providing of impairment provision
On the balance sheet date, inventories are accounted depending on which is lower between the cost and the
net realizable value. If the cost is higher than the net realizable value, the impairment provision will be made.
The realizable net value of inventory should be recognized based on solid evidence with the purpose of the
inventory and after-balance-sheet-date events taken into consideration.
(1) In the course of normal production and operation, the net realizable value of finished goods, commodities
and materials directly used for sale shall be determined by the estimated price of the inventory minus the estimated
cost of sale and related taxes. The inventory held for the execution of a sales contract or a labor contract
shall be measured on the basis of the contract price as its net realizable value; If the quantity held is greater
than the quantity ordered under the sales contract, the net realizable value of the excess inventory is measured
on the basis of the general sales price. For materials used for sale, the market price shall be used as the
measurement basis for the net realizable value.
②In the normal production and operation process, the inventory of materials that need to be processed is
determined by the amount of the estimated selling price of the finished product minus the estimated cost to be
incurred at the time of completion, estimated sales expenses and related taxes Realize the net value. If the
net realizable value of the finished product produced by it is higher than the cost, the material is measured
at cost; If the decrease in the price of the material indicates that the net realizable value of the finished
product is lower than the cost, the material is measured as the net realizable value and the inventory is prepared
for a decrease based on its difference.
③ Depreciation preparation of inventory is generally based on a single inventory item; For a large number
of inventories with a lower unit price, they are accrued by inventory type.
④ If the factors affecting the previous write-down of inventory value have disappeared on the balance sheet
date, the amount of the write-down will be restored and transferred back within the amount of inventory
depreciation reserve that has been accrued, and the amount returned will be included in the current profit and
loss.
(5) Methods of amortization of swing materials
① Low-value consumables are amortized on on-off amortization basis at using.
② Packages are amortized on on-off amortization basis at using.
15. Contract assets
As of 1 January 2020
The Company presents contract assets or liabilities in the balance sheet according to the relationship
between performance obligation and customer payment. The consideration for which the Company is entitled to
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
receive (subject to factors other than the passage of time) for the transfer of goods or the provision of services
to customers is listed as contract assets. The Company's obligation to transfer goods or provide services to
customers for consideration received or receivable from customers is listed as contractual liabilities.
For the determination method and accounting treatment method of the Company's expected credit loss of contract assets, see 9.
Financial instruments in Chapter XII, V. Important accounting policies and accounting estimates.
Contract assets and contract liabilities are listed separately in the balance sheet. Contract assets and contract
liabilities under the same contract are listed in net amount. If the net amount is the debit balance, it shall be listed in "contract assets"
or "other non current assets" according to its liquidity; if the net amount is the credit balance, it shall be listed in "contract liabilities"
or "other non-current liabilities" according to its liquidity. Contract assets and contract liabilities under different
contracts cannot offset each other.
16. Contract costs
As of 1 January 2020
Contract cost is divided into contract performance cost and contract acquisition cost.
The cost incurred by the Company in performing the contract shall be recognized as an asset when the following
conditions are met simultaneously:
① The cost is directly related to a current or expected contract, including direct labor, direct materials, manufacturing
expenses (or similar expenses), clearly borne by the customer, and other costs incurred only due to the contract;
② This cost increases the Company's future resources for fulfilling its performance obligations.
③ The cost is expected to be recovered.
If the incremental cost incurred by the Company to obtain the contract is expected to be recovered, it shall
be recognized as an asset as the contract acquisition cost.
The assets related to the contract cost shall be amortised on the same basis as the income from goods or
services related to the assets; however, if the amortization period of the contract acquisition cost is less
than one year, the Company shall include it in the current profit and loss when it occurs.
If the book value of the assets related to the contract cost is higher than the difference between the
following two items, the Company will make provision for impairment for the excess part and recognize it as the
loss of asset impairment, and further consider whether the estimated liabilities related to the loss contract
should be made:
① The residual consideration expected to be obtained due to the transfer of goods or services related to
the asset;
② The estimated cost to be incurred for the transfer of the relevant goods or services.
If the above provision for impairment of assets is subsequently reversed, the book value of the asset after
reversal shall not exceed the book value of the asset on the reversal date without provision for impairment.
The contract performance cost recognized as an asset with an amortization period of no more than one year or one normal
business cycle at the time of initial recognition shall be listed in the "inventory" item, and the amortization period of no more than
one year or one normal business cycle at the time of initial recognition shall be listed in the "other non current assets" item.
The contract acquisition cost recognized as an asset shall be listed in the item of "other current assets" when the amortization period
does not exceed one year or one normal business cycle at the time of initial recognition, and listed in the item of "other non current
assets" when the amortization period exceeds one year or one normal business cycle at the time of initial recognition.
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
17. Long-term share equity investment
The Group's long-term equity investment includes control on invested entities and significant impacts on
equity investment. Invested entities on which the Group has significant impacts are associates of the Group.
(1) Basis for recognition of common control and major influence on invested entities
Common control refers to the common control of an arrangement in accordance with the relevant agreement,
and the relevant activities of the arrangement must be agreed upon by the participants who share control. In
determining whether there is common control, the first step is to determine whether all or a group of participants
collectively control the arrangement, which is considered collective control by all or a group of participants
if all or a group of participants must act together to determine the activities associated with the arrangement.
Secondly, it is judged whether the decision on related activities of the arrangement must be agreed by the
participants who collectively control the arrangement. If there is a combination of two or more parties that
can collectively control an arrangement, it does not constitute joint control. When judging whether there is
joint control, the protective rights enjoyed are not considered.
Major influence refers to the power to participate in decision-making of financial and operation policies
of a company, but cannot control or jointly control the making of the policies. When considering whether the
Company can impose significant impacts on the invested entity, impacts of conversion of shares with voting rights
held directly or indirectly by the investor and voting rights that can be executed in this period held by the
investor and other party into shares of the invested entity should be considered.
If the Company directly or through subsidiaries holds more than 20% (inclusive) but less than 50% of the shares with voting
rights of the invested entity, unless there is clear evidence proving that the Company cannot participate the decision-making of
production and operation of the invested entity, the Company has major influence on the invested entity.
(2) Initial investment cost determination
Long-term equity investments formed by merger of enterprises shall be determined in accordance with the
following provisions:
A. In the case of an enterprise merger under the same control, where the merging party makes a valuation of the merger by
payment of cash, transfer of non-cash assets or undertaking liabilities, the share of the book value of the owner's interest in the final
controlling party's consolidated financial statements as the initial investment cost of the long-term equity investment at the date of the
merger. The difference between the initial investment cost of long-term equity investment and the cash paid, the
transferred non-cash assets and the book value of the debt assumed shall be adjusted to the capital reserve;
if the capital reserve is insufficient to offset, the retained earnings shall be adjusted;
Long-term equity investment generated by enterprise merger: for long-term equity investment obtained by merger of
enterprises under common control, the obtained share of book value of the interests of the merged party’s owner in the consolidate
financial statements on the merger date is costs; for long-term equity investment obtained by merger of enterprises not under
common control, the merger cost is the investment cost. Adjust the capital reserve according to the difference between
the initial investment cost of long-term equity investment and the total face value of the issued shares. If
the capital reserve is insufficient to offset or reduce, the retained income shall be adjusted;
For merger of entities under different control, the merger cost is the fair value of the asset paid, liability undertaken, and equity
securities issued for exchanging of control power over the entities at the day of acquisition. Agency expenses and other
administrative expenses such as auditing, legal consulting, or appraisal services occurred relating to the merger
of entities are accounted into current income account when occurred.
Long-term equity investments formed by merger of enterprises shall be determined in accordance with the
following provisions:
For long-term equity investment obtained by cash, the actually paid consideration is the initial investment cost. Initial
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
investment costs include expenses, taxes and other necessary expenditures directly related to the acquisition
of long-term equity investments;
B. Long-term equity investments acquired from the issuance of interest securities are the initial investment costs based on the
fair value of the issue interest securities;
C. For long-term equity investments obtained through non-monetary asset exchanges, if the exchange has commercial
substance and the fair value of the exchanged assets or exchanged assets can be reliably measured, the fair value of the exchanged
assets and relevant taxes shall be used as the initial Investment cost, the difference between the fair value and book value of the
swapped-out asset is included in the current profit and loss; if the non-monetary asset exchange does not meet the above two
conditions at the same time, the book value of the swapped-out asset and relevant taxes will be used as the initial investment cost.
D. Long-term equity investments acquired through debt restructuring determine their recorded value at the fair value of the
waived claims and other costs such as taxes directly attributable to the assets and account for the difference between the fair value
and the book value of the waived claims.
(3) Subsequent measurement and recognition of gain/loss
The Company uses the cost method to measure long-term share equity investment in which the Company can control
the invested entity; and uses the equity method to measure long-term share equity investment in which the Company
has substantial influence on the invested entity.
① Cost
For the long-term equity investment measured on the cost basis, except for the announced cash dividend or
profit included in the practical cost or price when the investment was made, the cash dividends or profit
distributed by the invested entity are recognized as investment gains in the current gain/loss account.
Equity
Gains from long-term equity investment measured by equity
When the equity method is used to measure long-term equity investment, the investment cost will not be
adjusted if the investment cost of the long-term equity investment is larger than the share of fair value of
the recognizable assets of the invested entity. When it is smaller than the share of fair value of the recognizable
assets of the invested entity, the book value will be adjusted and the difference is included in the current
gains of the investment.
When the equity method is used, the current investment gain is the share of the net gain realized in the
current year that can be shared or borne, recognized as investment gain and other misc. income. The book value
of the long-term equity investment is adjusted accordingly. The book value of the long-term equity investment
should be accordingly decreased based on the share of profit or cash dividend announced by the invested entity;
according to other changes in the owner’s equity except for net profit and loss, other misc income and profit
distribution of the invested entity, adjust the book value of the long-term equity investment and record it in
the capital surplus (other capital surplus). When the share of the net gains that can be enjoyed is recognized,
it is recognized after the net profit of the invested entity is adjusted based on the fair value of the recognizeable
assets of the invested entity according to the Company's accounting policies and accounting period. Where the
accounting policy and accounting period adopted by the Invested unit are inconsistent with the Company, the
financial statements of the Invested unit shall be adjusted in accordance with the accounting policy and accounting
period of the Company, and the investment income and other consolidated income shall be recognized. Internal
transaction gain not realized between the Company and affiliates is measured according to the shareholding
proportion and the investment gains is recoginzied after deduction. The unrealized internal transaction loss
between the Company and the invested entity is the impairment loss of transferred assets and should not be written
off.
Where substantial influence on invested entities is imposed or joint control is implemented due to increase
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
in investment, the sum of the fair value of the original equity and increased investment on the conversion date
is the initial investment cost under the equity method. If the equity investment originally held is classified
as other equity instrument investment, the difference between the fair value and the book value, as well as the
accumulated gains or losses originally included in other comprehensive income, shall be transferred out of other
comprehensive income and included in retained income in the current period when the equity method is adopted.
Where joint control or substantial influence on invested entities is lost due to disposal of part of
investment, the remaining equity after the disposal should be treated according to the Enterprise Accounting
Standard No.22 – Recognition and Measurement of Financial Instruments from the date of losing the joint control
or substantial influence. The difference between the fair value and book value should be accounted the profit
and loss of the current period. For other misc. incomes of original share equity investment determined using
the equity method, when the equity method is no longer used, it should be treated based on the same basis of
the treatment of related assets or liability of the invested entities; the other owners' interests related to
the original share equity investment should be transferred to gain/loss of the current period.
(4) Equity investment held for sale
For the remaining equity investments not classified as assets held for sale, the equity method is adopted
for accounting treatment.
Equity investments classified as held for sale to associates that are no longer eligible to hold classified
assets for sale are retrospectively adjusted using the equity method starting from the date that they are
classified as held for sale. The classification is adjusted to hold the financial statements for the period to
be sold.
(5) Impairment examination and providing of impairment provision
See Note V. 24 for the assets impairment provision method for investment in subsidiaries and joint ventures.
XVIII. Investment real estates
(1) Classification of investment real estate
Investment real estates are held for rent or capital appreciation, or both. These include, inter alia:
① Leased land using right
(2) the right to use the land that is transferred after holding and preparing for the increment.
③ Leased building
(2) Measurement of investment real estate
For investment real estates with an active real estate transaction market and the Company can obtain market
price and other information of same or similar real estates to reasonably estimate the investment real estates’
fair value, the Company will use the fair value mode to measure the investment real estates subsequently.
Variations in fair value are accounted into the current gain/loss account.
The fair value of investment real estates is determined with reference to the current market prices of same
or similar real estates in active markets; when no such price is available, with reference to the recent transaction
prices and consideration of factors including transaction background, date and district to reasonably estimate
the fair value; or based on the estimated lease gains and present value of related cash flows.
For investment real estate under construction (including investment real estate under construction for the
first time), if the fair value cannot be reliably determined but the expected fair value of the real estate after
completion is continuously and reliably obtained, the investment real estate under construction is measured by
cost. When the fair value can be measured reliably or after completion (the earlier one), it is measured at fair
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
value. For an investment real estate whose fair value is proven unable to be obtained continuously and reliably
by objective evidence, the real estate will be measured at cost basis until it is disposed and no residual value
remains as assumed.
If the cost model is adopted to measure the investment real estate, the depreciation or amortization shall be calculated according
to the straight line method after deducting the accumulated impairment and net residual value of the investment real estate cost. For
the method of depreciation of the accrued assets, see Note V 24.
The types of investment real estate, estimated economic useful life and estimated net residual value rate
are determined as follows:
Type Service year Residual rate % Annual depreciation
(year) rate %
Houses & buildings 35-50 10 1.80-2.57
19. Fixed assets
(1) Recognition conditions
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing services, lease or for
operation & management, and have more than one accounting year of service life. Fixed assets are recognized at the actual cost of
acquisition when the following conditions are met: (1) The economic benefits associated with the fixed assets are likely to flow into
the enterprise. ② The cost of the fixed assets can be measured reliably. Overhaul cost generated by regular examination on fixed
assets is recognized as fixed assets costs when there is evidence proving that it meets fix assets recognition conditions. If not, it will
be accounted into the current gain/loss account.
(2) Depreciation method
Annual depreciation
Type Depreciation method Service year Residual rate
rate %
Houses & buildings Average age 35-50 10% 1.8%-2.57%
Mechanical equipment Average age 10 10% 9%
Transportation facilities Average age 5 10% 18%
Electronics and other
Average age 5 10% 18%
devices
PV power plants Average age 20 5% 4.75%
(3) Recognition and pricing of financing leased fixed assets
See Chapter V, Important Accounting Policies and Accounting Estimates 33. Lease.
XX. Construction in process
(1) Construction in progress is accounted for by project classification.
(2) Standard and timing for transferring construction in process into fixed assets
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
The full expenditure incurred on the construction-in-progress project as a fixed asset is recorded as the value
of the asset before the asset is constructed to the intended usable state. This includes construction costs,
the original cost of equipment, other necessary expenditures incurred in order to enable the construction works
to reach the intended usable status and the borrowing costs incurred for the specific borrowing of the project
and the general borrowing expenses incurred before the assets reach the intended usable status. Construction
in process will be transferred to fixed assets when it reaches the preset service condition. The fixed assets
that have reached the intended usable state but have not been completed shall be transferred to the fixed assets
according to the estimated value according to the estimated value according to the estimated value according
to the project budget, cost or actual project cost, etc. The depreciation of the fixed assets shall be accrued
according to the Company's fixed assets depreciation policy. The original estimated value shall be adjusted
according to the actual cost after the completion.
XXI. Borrowing expenses
(1) Recognition principles for capitalization of borrowing expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing or production of asset
satisfying the conditions of capitalizing, are capitalized and accounted as cost of related asset.
(1) Asset expenditure has occurred;
② The borrowing expense has already occurred;
③ Purchasing or production activity, which is necessary for the asset to reach the useful status, has already
started.
Other interest on loans, discounts or premiums and exchange differences are included in the income and loss
incurred in the current period.
If the construction or production of assets satisfying the capitalizing conditions is suspended abnormally for over 3 months,
capitalizing of borrowing expenses shall be suspended. During the normal suspension period, borrowing expenses will be capitalized
continuously.
When the asset satisfying the capitalizing conditions has reached its usable or sellable status, capitalizing
of borrowing expenses shall be terminated.
(2) Calculation of the capitalization amount of borrowing expense
Interest expenses generated by special borrowings less the interests income obtained from the deposit of
unused borrowings or investment gains from temporary investment is capitalized; the capitalization amount for
general borrowing is determined based on the capitalization rate which is the exceeding part of the accumulative
assets expense over weighted average of the assets expense of the special borrowing/used general borrowing.
If the assets that are constructed or produced under the condition of capitalization occupy the general borrowing,
the interest amount to be capitalized in the general borrowing shall be calculated and determined by multiplying
the capital rate of the general borrowing by the weighted average of the asset expenditure of the accumulated
assets whose expenditure exceeds that of the specialized borrowing. The capitalization ratio is the weighted
average interest rate of general borrowings.
22. Use right assets
See Chapter V, Important Accounting Policies and Accounting Estimates 33. Lease.
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
23. Intangible assets
(1) Pricing method, service life and depreciation test
(1) Pricing of intangible assets
Recorded at the actual cost of acquisition.
Amortization of intangible assets
① Useful life of intangible assets with limited useful life
Item Estimated useful Basis
life
Land using right Term Use right assets
Trademarks and patents 10 years Reference to determine the lifetime of a company
for which it can bring economic benefits
Proprietary 10 years Reference to determine the lifetime of a company
technology for which it can bring economic benefits
Software 5, 10 years Reference to determine the lifetime of a company
for which it can bring economic benefits
At the end of each year, the Company will reexamine the useful life and amortization basis of intangible
assets with limited useful life. Upon review, the service life and amortization methods of intangible assets
at the end of the period are not different from those previously estimated.
(2) Intangible assets which cannot be foreseeable to bring economic benefits to enterprises shall be regarded
as intangible assets whose useful life is uncertain. For intangible assets with uncertain service life, the Company
reviews the service life of intangible assets with uncertain service life at the end of each year. If it is still
uncertain after rechecking, it shall conduct an impairment test on the balance sheet date.
③ Amortization of intangible assets
For intangible assets with limited service life, the Company shall determine their service life at the time
of acquisition, and shall use the straight line method system to reasonably amortize their service life, and
the amortization amount shall be included in the profit and loss of the current period according to the beneficial
items. The specific amortization amount is the amount after the cost is deducted from the estimated residual
value. For fixed assets for which depreciation provision is made, the depreciation rate will be determined after
the accumulative depreciation provision amount is deducted. The residual value of an intangible asset with limited
useful life is treated as zero, except where a third party undertakes to purchase the intangible asset at the
end of its useful life or to obtain expected residual value information based on the active market, which is
likely to exist at the end of its useful life.
Intangible assets with uncertain service life will not be amortized. At the end of each year, the useful life
of intangible assets with uncertain useful life is reviewed, and if there is evidence that the useful life of
intangible assets is limited, the useful life is estimated and the system is reasonably amortized within the
expected useful life.
(2) Accounting policies for internal R&D expenses
Specific standard for distinguish between research and development stage
① The Company takes the information and related preparatory activities for further development activities
as the research stage, and the intangible assets expenditure in the research stage is included in the current
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
profit and loss period.
② The development activities carried out after the Company has completed the research stage as the
development stage.
Specific conditions for capitalization of expenditures in the development phase
Expenditures in the development phase can be recognized as intangible assets only when the following
conditions are met:
A. It is technically feasible to complete the intangible asset so that it can be used or sold;
B. Have the intention to complete the intangible asset and use or sell it;
C. The way intangible assets generate economic benefits, including the ability to prove that the products produced by the
intangible assets exist in the market or the intangible assets themselves exist in the market, and the intangible assets will be used
internally, which can prove their usefulness;
D. Have sufficient technical, financial and other resource support to complete the development of the intangible asset, and have
the ability to use or sell the intangible asset;
E. The expenditure attributable to the development stage of the intangible asset can be reliably measured.
24. Assets impairment
The Group uses the cost mode to continue measuring the assets impairment to investment real estate, fixed
assets construction in progress, intangible assets and goodwill (except for the inventories, investment real
estate measured by the fair value mode, deferred income tax assets and financial assets). The method is determined
as follows:
The Company judges whether there is a sign of impairment to assets on the balance sheet day. If such sign
exists, the Company estimates the recoverable amount and conducts the impairment test. Impairment test is
conducted annually for goodwill generated by mergers and intangible assets that have not reached the useful
condition no matter whether the impairment sign exists.
The recoverable amount is determined by the higher of the net of fair value minus disposal expense and the
present value of the predicted future cash flow. The Company estimates the recoverable amount on the individual
asset item basis; whether it is hard to estimate the recoverable amount on the individual asset item basis,
determine the recoverable amount based on the asset group that the assets belong to. The assets group is determined
by whether the main cash flow generated by the Group is independent from those generated by other assets or assets
groups.
When the recoverable amount of the assets or assets group is lower than its book value, the Company writes
down the book value to the recoverable amount, the write-down amount is accounted into the current income account
and the assets impairment provision is made.
For goodwill impairment test, the book value of goodwill generated by mergers is amortized through reasonable
measures since the purchase day to related asset groups; those cannot be amortized to related assets groups are
amortized to related combination of asset groups. The related asset groups or combination of asset groups refer
to those that can benefit from the synergistic effect of mergers and must not exceed to the reporting range
determined by the Company.
When the impairment test is conducted, if there is sign of impairment to the asset group or combination
of asset groups related to goodwill, first perform impair test for asset group or combination of asset groups
without goodwill and calculate the recoverable amount and recognize the related impairment loss. Then conduct
impairment test on those with goodwill, compare the book value with recoverable amount. If the recoverable amount
is lower than the book value, recognize the impairment loss of the goodwill.
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Once recognized, the asset impairment loss cannot be written back in subsequent accounting period.
25. Long-term amortizable expenses
The long-term outstanding expenses shall be accounted for all expenses incurred by the Company but which
shall be borne by the current and future periods for more than one year, and the long-term outstanding expenses
shall be amortized averagely within the benefit period.
26. Contract liabilities
See 15. Contract assets in Chapter V. Important Accounting Policies and Accounting Estimates for details.
27. Staff remuneration
(1) Accounting of operational leasing
① Basic salary of employees (salary, bonus, allowance, subsidy)
In the accounting period for which the staff and workers provide services, the Company shall confirm the
actual short-term remuneration as liabilities and shall account for the current income and loss, except as required
or permitted by other accounting standards.
② Employee welfare
The employee benefits incurred by the Company shall be included in the current profit and loss or related
asset costs according to the actual amount incurred. Where the employee's benefit is non-monetary, it shall be
measured on the basis of fair value.
③ Social insurance premiums and housing accumulation funds such as health insurance premiums, work injury
premiums, birth insurance premiums, trade union funds and staff and education funds
The Company pays the medical insurance premiums, work injury insurance premiums, birth insurance premiums,
etc. social insurance premiums and housing accumulation funds for the staff and workers, as well as the union
funds and the staff and workers education funds according to the regulations, in the accounting period for which
the staff and workers provide services, the corresponding salary amount of the staff and workers, and confirms
the corresponding liabilities, which are included in the current profit and loss or related asset costs.
④ Short-term paid leave
The Company accumulates the salary of the employees who are absent from work with pay when the employees
provide service, thus increasing their future right of absence with pay. The Company confirms the salary of the
employee related to the absence of non-cumulative salary during the actual absence accounting period.
⑤ Short-term profit share program
If the profit-sharing plan meets the following conditions at the same time, the Company shall confirm the
salary payable to the staff and workers:
A. The legal or presumptive obligation of the enterprise to pay the remuneration of its employees as a result of past matters;
B. The amount of employee compensation obligations due to the profit sharing plan can be reliably estimated.
(2) Accounting of post-employment welfare
The Group's post-employment benefit plan is defined contribution plan. Defined contribution plans include basic
endowment insurance, unemployment insurance, etc. During the accounting period when employees provide services
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
for them, the Company shall recognize the deposit amount calculated according to the defined deposit plan as
liabilities and include it in the current profits and losses or related asset costs.
(3) Accounting of dismiss welfare
If the Company provides termination benefits to employees, the employee compensation liabilities arising
from the termination benefits shall be recognized at the earliest of the following two and shall be included
in the current profit and loss:
① An enterprise may not unilaterally withdraw the resignation benefits provided for by the dismissal plan
or reduction proposal;
② When the enterprise recognizes the costs or expenses related to the reorganization involving the payment of
resignation benefits.
(4) Accounting of other long-term staff welfare
28. Lease liabilities
See Chapter V, Important Accounting Policies and Accounting Estimates 33. Lease.
29. Anticipated liabilities
（1） Confirmation of projected liabilities
When responsibilities occurred in connection to contingent issues, and all of the following conditions are
satisfied, they are recognized as expectable liability in the balance sheet:
① This responsibility is a current responsibility undertaken by the Company;
② Execution of this responsibility may cause financial benefit outflow from the Company;
③ Amount of the liability can be reliably measured.
（2） Methods of measurement of projected liabilities
Expected liabilities are initially measured at the best estimation on the expenses to exercise the current
responsibility, and with considerations to the relative risks, uncertainty, and periodic value of currency. On
each balance sheet date, review the book value of the estimated liabilities. Where there is conclusive evidence
that the book value does not reflect the current best estimate, the book value is adjusted to the current best
estimate.
30. Revenue
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.6 – Listed Companies Engaged in Decoration Business.
As of 1 January 2020
(1) General principles
Income is the total inflow of economic benefits formed in the daily activities of the Company, which will
lead to the increase of shareholders' equity and has nothing to do with the capital invested by shareholders.
The Company has fulfilled the performance obligation in the contract, that is, the revenue is recognized
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
when the customer obtains the control right of relevant goods. To obtain the control right of the relevant commodity
means to be able to dominate the use of the commodity and obtain almost all the economic benefits from it.
If there are two or more performance obligations in the contract, the Company will allocate the transaction
price to each single performance obligation according to the relative proportion of the separate selling price
of the goods or services promised by each single performance obligation on the start date of the contract, and
measure the income according to the transaction price allocated to each single performance obligation.
The transaction price refers to the amount of consideration that the Company is expected to be entitled
to receive due to the transfer of goods or services to customers, excluding the amount collected on behalf of
a third party. When determining the contract transaction price, if there is a variable consideration, the Company
shall determine the best estimate of the variable consideration according to the expected value or the most likely
amount, and include it in the transaction price with the amount not exceeding the accumulated recognized income
when the relevant uncertainty is eliminated, which is most likely not to have a significant reversal. If there
is a significant financing component in the contract, the Company will determine the transaction price according
to the amount payable in cash when the customer obtains the control right of the commodity. The difference between
the transaction price and the contract consideration will be amortised by the effective interest method during
the contract period. If the interval between the control right transfer and the customer's payment is less than
one year, the Company will not consider the financing component Points.
If one of the following conditions is met, the performance obligation shall be performed within a certain
period of time; otherwise, the performance obligation shall be performed at a certain point of time:
① When the customer performs the contract in the Company, he obtains and consumes the economic benefits
brought by the Company's performance;
② Customers can control the goods under construction during the performance of the contract;
③ The goods produced by the Company in the process of performance have irreplaceable uses, and the Company
has the right to collect money for the performance part that has been completed so far during the whole contract
period.
For the performance obligations performed within a certain period of time, the Company shall recognize the
revenue according to the performance progress within that period, except that the performance progress cannot
be reasonably determined. The Company determines the performance schedule of providing services according to
the input method. When the progress of performance cannot be reasonably determined, if the cost incurred by the
Company is expected to be compensated, the revenue shall be recognized according to the amount of cost incurred
until the progress of performance can be reasonably determined.
For the performance obligation performed at a certain time point, the Company recognizes the revenue at
the time point when the customer obtains the control right of relevant goods. In determining whether a customer
has acquired control of goods or services, the Company will consider the following signs:
① The Company has the right to receive payment for the goods or services, that is, the customer has the
obligation to pay for the goods;
② The Company has transferred the legal ownership of the goods to the customer, that is, the customer has
the legal ownership of the goods;
③ The Company has transferred the goods in kind to the customer, that is, the customer has possessed the
goods in kind;
④ The Company has transferred the main risks and rewards of the ownership of the goods to the customer,
that is, the customer has obtained the main risks and rewards of the ownership of the goods;
⑤ The product has been accepted by the customer.
Sales return clause
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
For the sales with sales return clauses, when the customer obtains the control right of the relevant goods,
the Company shall recognize the revenue according to the amount of consideration it is entitled to obtain due
to the transfer of the goods to the customer, and recognize the amount expected to be returned due to the sales
return as the estimated liability; at the same time, the Company shall deduct the estimated cost of recovering
the goods according to the book value of the expected returned goods at the time of transfer（ The balance after
deducting the value of the returned goods is recognized as an asset, that is, the cost of return receivable,
which is carried forward by deducting the net cost of the above assets according to the book value of the transferred
goods at the time of transfer. On each balance sheet date, the Company re estimates the return of future sales
and re measures the above assets and liabilities.
Warranty obligations
According to the contract and legal provisions, the Company provides quality assurance for the goods sold
and the projects constructed. For the guarantee quality assurance to ensure that the goods sold meet the established standards,
the Company conducts accounting treatment in accordance with the accounting standards for Business Enterprises No. 13 -
contingencies. For the service quality assurance which provides a separate service in addition to guaranteeing that
the goods sold meet the established standards, the Company takes it as a single performance obligation, allocates
part of the transaction price to the service quality assurance according to the relative proportion of the separate
selling price of the goods and service quality assurance, and recognizes the revenue when the customer obtains
the service control right. When evaluating whether the quality assurance provides a separate service in addition
to assuring customers that the goods sold meet the established standards, the Company considers whether the quality
assurance is a statutory requirement, the quality assurance period, and the nature of the Company's commitment
to perform the task.
Customer consideration payable
If there is consideration payable to the customer in the contract, unless the consideration is to obtain
other clearly distinguishable goods or services from the customer, the Company will offset the transaction price
with the consideration payable, and offset the current income at the later time of confirming the relevant income
or paying (or promising to pay) the customer's consideration.
Contractual rights not exercised by customers
If the Company advances sales of goods or services to customers, the amount shall be recognized as liabilities
first, and then converted into income when relevant performance obligations are fulfilled. When the Company does
not need to return the advance payment and the customer may give up all or part of the contract rights, if the
Company expects to have the right to obtain the amount related to the contract rights given up by the customer,
the above amount shall be recognized as income in proportion according to the mode of the customer exercising
the contract rights; otherwise, the Company only has the very low possibility of the customer requiring to perform
the remaining performance obligations The relevant balance of the above liabilities is converted into income.
Contract change
When the construction contract between the Company and the customer is changed:
① If the contract change increases the clearly distinguishable construction service and contract price,
and the new contract price reflects the separate price of the new construction service, the Company will treat
the contract change as a separate contract for accounting;
② If the contract change does not belong to the above-mentioned situation (1), and there is a clear
distinction between the transferred construction service and the non transferred construction service on the
date of contract change, the Company will regard it as the termination of the original contract, and at the same
time, combine the non performance part of the original contract and the contract change part into a new contract
for accounting treatment;
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
③ If the contract change does not belong to the above situation (1), and there is no clear distinction between
the transferred construction services and the non transferred construction services on the date of contract change,
the Company will take the contract change part as an integral part of the original contract for accounting treatment,
and the resulting impact on the recognized income will be adjusted to the current income on the date of contract
change.
(2) Specific methods
The specific methods of revenue recognition of the Company are as follows:
① Commodity sales contract
The sales contract between the Company and customers includes the performance obligation of transferring
curtain wall materials, electric energy, etc., which belongs to the performance obligation at a certain time
point.
Revenue from domestic sales of products is recognized at the time when the customer obtains the right of
control of the goods on the basis of comprehensive consideration of the following factors: the Ccompany has
delivered the products to the customer according to the contract, the customer has accepted the goods, the payment
for goods has been recovered or the receipt has been obtained, and the relevant economic benefits are likely
to flow in, the main risks and rewards of the ownership of the goods have been transferred, the legal ownership
has been transferred;
Based on the comprehensive consideration of the following factors, the revenue of export products is
recognized at the time when the customer obtains the control of the goods: the Company has declared the products
according to the contract, obtained the bill of lading, collected the payment for goods or obtained the receipt
certificate, and the relevant economic benefits are likely to flow in, the main risks and rewards of the ownership
of the goods have been transferred, and the legal ownership of the goods has been transferred Move.
② Service contract
The service contract between the Company and its customers includes the performance obligations of metro
platform screen door operation and maintenance and property services. As the Company's performance at the same
time, the customers obtain and consume the economic benefits brought by the Company's performance, the Company
takes it as the performance obligation within a certain period of time and allocates it equally during the service
provision period.
③ Engineering contract
The project contract between the Company and the customer includes the performance obligations of curtain
wall project and metro platform screen door project construction. As the customer can control the goods under
construction in the process of the Company's performance, the Company takes them as the performance obligations
within a certain period of time, and recognizes the income according to the performance progress, except that
the performance progress cannot be reasonably determined. The Company determines the performance schedule of
providing services according to the input method. The performance schedule shall be determined according to the
proportion of the actual contract cost to the estimated total contract cost. On the balance sheet date, the Company
re estimates the progress of completed or completed services to reflect the changes in performance.
④ Real estate sales contract
The income of the Company's real estate development business is recognized when the control of the property
is transferred to the customer. Based on the terms of the sales contract and the legal provisions applicable
to the contract, the control of the property can be transferred within a certain period of time or at a certain
point in time. Only if the goods produced by the Company during the performance of the contract have irreplaceable
uses, and the Company has the right to collect payment for the cumulative performance part that has been completed
during the entire contract period, the performance obligation has been completed during the contract period.
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
The progress is recognized as revenue within a period of time, and the progress of the completed performance
obligations is determined in accordance with the ratio of the contract costs actually incurred to complete the
performance obligations to the estimated total cost of the contract. Otherwise, the income is recognized when
the customer obtains the physical ownership or legal ownership of the completed property and the Company has
obtained the current right of collection and is likely to recover the consideration. When confirming the contract
transaction price, if the financing component is significant, the Company will adjust the contract commitment
consideration according to the financing component of the contract.
31. Government subsidy
(1) Recognition of government subsidies
Government subsidies are recognized when the following conditions are met:
① Requirements attached to government subsidies;
② The Company can receive government subsidies.
(2) Recognition of government subsidies
When a government subsidy is monetary capital, it is measured at the received or receivable amount. None
monetary capital are measured at fair value; if no reliable fair value available, recognized at RMB1.
(3) Recognition of government subsidies
① Assets-related
Government subsidies related to assets are obtained by the Company to purchase, build or formulate in other
manners long-term assets; or subsidies related to benefits. If the asset-related government subsidy is recognized
as deferred gain, should be recorded in gain and loss in the service life. Government subsidy measured at the
nominal amount is accounted into current income account. If the relevant assets are sold, transferred, scrapped
or damaged before the end of their useful life, the unallocated relevant deferred income balance shall be
transferred to the profit and loss of the current period of disposition of the assets.
Gain-related government subsidy should be accounted as follows:
The Company divides government subsidies into assets-related and earnings-related government subsidies.
Gain-related government subsidy should be accounted as follows:
Subsidy that will be used to compensate related future costs or losses should be recognized as deferred
gain and recorded in the gain and loss of the current report and offset related cost;
Subsidy that is used to compensate existing cost or loss should be recorded in the gain and loss of the
current period or offset related cost.
For government subsidies that include both asset-related and income-related parts, separate different parts
for accounting treatment; It is difficult to distinguish between the overall classification of government
subsidies related to benefits.
Government subsidy related to routine operations should be recorded in other gains or offset related cost.
Government subsidy not related to routine operations should be recorded in non-operating income or expense.
③ Policy preferential loan discount
The policy-based preferential loan obtained has interest subsidy. If the government allocates the
interest-subsidy funds to the lending bank, the loan amount actually received will be used as the entry value
of the loan, and the borrowing cost will be calculated based on the loan principal and policy-based preferential
interest rate.
If the government allocates the interest-bearing funds directly to the Group, discount interest will offset
the borrowing costs.
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
④ Government subsidy refund
When a confirmed government subsidy needs to be returned, the book value of the asset is adjusted against the
book value of the relevant asset at initial recognition. If there is a related deferred income balance, the book
balance of the related deferred income is written off and the excess is credited to the current profit or loss;
In other cases, it is directly included in the current profit and loss.
32. Differed income tax assets and differed income tax liabilities
The Company uses the temporary difference between the book value of the assets and liabilities on the balance
sheet day and the tax base and the liabilities method to recognize the deferred income tax. 26. Deferred income
tax assets and deferred income tax liabilities
(1) Deferred income tax assets
For deductible temporary discrepancies, deductible losses and tax offsets that can be carried forward for
future years, the impact on income tax is calculated at the estimated income tax rate for the transfer-back period
and the impact is recognized as deferred income tax assets, provided that the Company is likely to obtain future
taxable income for deductible temporary discrepancies, deductible losses and tax offsets.
At the same time, the impact on income tax of deductible temporary discrepancies resulting from the initial
recognition of assets or liabilities in transactions or matters with the following characteristics is inconclusive
as deferred income tax assets:
A. The transaction is not a business combination;
B. the transaction is not a merger and the transaction does not affect the accounting profit or taxable proceeds;
In the event of temporary discrepancy of deductible investment related to subsidiaries, joint ventures and
joint ventures, and meeting the following two conditions, the amount of impact (talent) on income tax shall be
deemed as deferred income tax assets:
A. Temporary discrepancies are likely to be reversed in the foreseeable future;
B. In the future, it is likely to obtain taxable income that can be used to offset the deductible temporary differences;
On the balance sheet date, if there is conclusive evidence that sufficient taxable income is likely to be
obtained in the future to offset the deductible temporary differences, the deferred income tax assets that have
not been recognized in the previous period are recognized.
On the balance sheet day, the Company re-examines the book value of the deferred income tax assets. If it
is unlikely to have adequate taxable proceeds to reduce the benefits of the deferred income tax assets, less
the deferred income tax assets’ book value. When there is adequate taxable proceeds, the lessened amount will
be reversed.
(2) Deferred income tax assets
All provisional differences in taxable income of the Company shall be measured on the basis of the estimated
income tax rate for the period of transfer-back and shall be recognized as deferred income tax liabilities, except
that:
At the same time, the impact on income tax of deductible temporary discrepancies resulting the initial
recognition of assets or liabilities in transactions or matters with the following characteristics is inconclusive
as deferred income tax Liabilities:
A. Initial recognition of goodwill;
B. Initial recognition of goodwill, or of assets or liabilities generated in transactions with the following features: the transaction
is not a merger and the transaction does not affect the accounting profit or taxable proceeds;
② In the event of temporary discrepancy of deductible investment related to subsidiaries, Joint venture
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
joint ventures, and meeting the two conditions, the amount of impact (talent) on income tax shall be deemed as
deferred income tax assets:
A. The Company is able to control the time of temporary discrepancy transfers;
B Temporary discrepancies are likely to be reversed in the foreseeable future;
(3) Deferred income tax assets
(1) Deferred income tax liabilities or assets associated with enterprise consolidation
Temporary difference of taxable tax or deductible temporary difference generated by enterprise merger under
non-same control. When deferred income tax liability or deferred income tax asset is recognized, related deferred
income tax expense (or income) is usually adjusted as recognized goodwill in enterprise merger.
② Amount of shares paid and accounted as owners' equity
Except for the adjustment goodwill generated by mergers or deferred income tax related to transactions or
events directly accounted into the owners’ equity, income tax is accounted as income tax expense into the current
gain/loss account. The effects of temporary discrepancy on income tax include the following: Other integrated
benefits such as fair value change of financial assets available for sale, retroactive adjustment of accounting
policy changes or retroactive restatement of accounting error correction discrepancy to adjust the initial
retained income, and mixed financial instruments including liabilities and equity.
③ Compensation for losses and tax deductions
A. Compensable losses and tax deductions from the Company's own operations
Deductible losses refer to the losses calculated and determined in accordance with the provisions of the
tax law that are allowed to be made up with the taxable income of subsequent years. The uncovered losses (deductible
losses) and tax deductions that can be carried forward in accordance with the tax law are treated as deductible
temporary differences. When it is expected that sufficient taxable income is likely to be obtained in the future
period when it is expected to be available to make up for losses or tax deductions, the corresponding deferred
income tax assets are recognized within the limit of the taxable income that is likely to be obtained, while
reducing the current period Income tax expense in the income statement.
B. Compensable uncovered losses of the merged company due to business merger
In a business combination, if the Company obtains the deductible temporary difference of the purchased party
and does not meet the deferred income tax asset recognition conditions on the purchase date, it shall not be
recognized. Within 12 months after the purchase date, if new or further information is obtained indicating that the relevant
conditions on the purchase date already exist, and the economic benefits brought about by the temporary difference are expected to
be deducted on the purchase date, confirm the relevant delivery. Deferred income tax assets, while reducing goodwill, if the goodwill
is not enough to offset, the difference is recognized as the current profit and loss; except for the above circumstances, the deferred tax
assets related to the business combination are recognized and included in the current profit and loss.
④Temporary difference caused by merger offset
If there is a temporary difference between the book value of assets and liabilities in the consolidated
balance sheet and the taxable basis of the taxpayer due to the offset of the unrealized internal sales gain or
loss, the deferred income tax asset or the deferred income tax liability is confirmed in the consolidated balance
sheet, and the income tax expense in the consolidated profit statement is adjusted, with the exception of the
deferred income tax related to the transaction or event directly included in the owner's equity and the merger
of the enterprise.
⑤ Share payment settled by equity
If the tax law provides for allowable pre-tax deduction of expenses related to share payment, within the period
for which the cost and expense are recognized in accordance with the accounting standards, the Company shall
calculate the tax basis and temporary discrepancy based on the estimated pre-tax deduction amount at the end
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
of the accounting period and confirm the relevant deferred income tax if it meets the conditions for confirmation.
Of these, the amount that can be deducted before tax in the future exceeds the cost related to share payment
recognized in accordance with the accounting standards, and the excess income tax shall be directly included
in the owner's equity.
33. Leasing
(1) The Company as leasee
The Company recognizes the right to use assets and lease liabilities for the lease on the beginning date of the
lease term. The right of use assets are initially measured at cost, including the initial measurement amount of lease liabilities, the
lease payment paid on or before the beginning of the lease term (deducting the amount related to the enjoyed lease incentives), the
initial direct expenses incurred, and the costs incurred for dismantling and removing the leased assets, the estimated cost of restoring
the site where the leased asset is located or restoring the leased asset to the state agreed in the lease terms.
The Company depreciates the right of use assets using the straight-line method. If it can be reasonably
determined that the ownership of the leased asset is obtained at the expiration of the lease term, the Company
shall accrue depreciation within the remaining service life of the leased asset. Otherwise, the leased asset
is depreciated within the shorter of the lease term and the remaining service life of the leased asset. The
impairment provision for right of use assets shall be accrued according to the accounting policies described in note V. 24.
The lease liabilities are initially measured according to the present value of the unpaid lease payments
at the beginning of the lease term, and the discount rate is the interest rate embedded in the lease. If the
embedded interest rate of the lease cannot be determined, the incremental loan interest rate of the Company shall
be used as the discount rate.
The Company calculates the interest expense of the lease liability in each period of the lease term according
to the fixed periodic interest rate and records it into the current profit and loss or relevant asset cost. The
amount of variable lease payments not included in the measurement of lease liabilities shall be included in the
current profits and losses or relevant asset costs when actually incurred.
After the beginning date of the lease term, in case of the following circumstances, the Company shall re
measure the lease liabilities according to the present value of the lease payment after the change:
-Changes in the expected payable amount according to the guarantee residual value;
-Changes in the index or ratio used to determine the amount of lease payments;
-The Company's appraisal results of purchase option, renewal option or termination option have changed, or the actual exercise
of renewal option or termination option is inconsistent with the original appraisal results.
When the lease liabilities are remeasured, the Company adjusts the book value of the right to use assets
accordingly. If the book value of the right of use asset has been reduced to zero, but the lease liability still
needs to be further reduced, the Company shall record the remaining amount into the current profit and loss.
The Company has chosen not to recognize the right to use assets and lease liabilities for short-term leases (leases with a lease
term of no more than 12 months) and low-value asset leases, and the relevant lease payments are included in the current profit and
loss or relevant asset costs according to the straight-line method in each period of the lease term.
(2) The Company is the leasor
On the lease commencement date, the Company divides the lease into financial lease and operating lease. The
company does not have financial leasing.
When the Company is the operating lessor, the rent received shall be recognized as income within the lease
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
term by the straight line method. Where the lessor provides a lease-free period, the total rent shall be apportioned
within the whole lease-free period without deducting the lease-free period according to the straight line method
or other reasonable method, and the rent-free period shall be recognized as well as the corresponding liabilities.
If the charterer undertakes certain expenses, the Company shall distribute the rent income balance deducted from
the total rent income during the lease term.
Initial direct expenses are recorded to current income account. Larger amounts shall be capitalized and
included in current profits and losses in installments on the same basis as the confirmed rental income during
the entire operating lease period. In the event of an agreement or rent, the current profit and loss shall be
included in the actual occurrence.
34. Other significant accounting policies and estimates
(1) Measurement of Fair Value
Fair value refers to the amount of asset exchange or liabilities settlement by both transaction parties
familiar with the situation in a fair deal on a voluntary basis.
The Company measures the fair value of related assets or liabilities at the prices in the main market. If
there is no major market, the Company measures the fair value of the relevant assets or liabilities at the most
favorable market prices. The Group uses assumptions that market participants use to maximize their economic
benefits when pricing the asset or liability.
The main market refers to the market with the highest transaction volume and activity of the related assets
or liabilities. The most favorable market means the market that can sell the related assets at the highest amount
or transfer the related liabilities at the lowest amount after considering the transaction cost and transportation
cost.
For financial assets or liabilities in an active market, The Company determines their fair value based on
quotations in the active market. If there is no active market, the Company uses evaluation techniques to determine
the fair value.
For the measurement of non-financial assets at fair value, the ability of market participants to use the
assets for optimal purposes to generate economic benefits, or the ability to sell the assets to other market
participants that can be used for optimal purposes to generate economic benefits.
① Valuation technology
The Company adopts valuation techniques that are applicable in the current period and are supported by
sufficient data and other information. The valuation techniques used mainly include market method, income method
and cost method. The Company uses a method consistent with one or more of the valuation techniques to measure
fair value. If multiple valuation techniques are used to measure fair value, the reasonableness of each valuation
result shall be considered, and the fair value shall be selected as the most representative of fair value under
the current circumstances. The amount of value is regarded as fair value.
The The Company equipment are applicable in the current circumstances and have sufficient available data
and other information to support the use of the relevant observable input values prioritized. Unobservable input
values are used only when the observable input value cannot be obtained or is not feasible. Observable input
values are input values that can be obtained from market data. The Group uses assumptions that market participants
use to maximize their economic benefits when pricing the asset or liability. Non-observable input values are
input values that cannot be obtained from market data. The input value is obtained based on the best information
available on assumptions used by market participants in pricing the relevant asset or liability.
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
②Fair value hierarchy
This company divides the input value used in fair value measurement into three levels, and first uses the
first level input value, then uses the second level input value, and finally uses the third level input value.
First level: quotation of same assets or liabilities in an active market (unadjusted) The second level input
value is a directly or indirectly observable input value of the asset or liability in addition to the first level
input value. The input value of the third level is the unobservable input value of the related asset or liability.
(2) Hedge accounting
(2.1) Classification of inventories
The Company's hedge is a cash flow hedge.
Cash flow hedging refers to the hedging of cash flow risk. The change in cash flow is derived from specific
risks associated with recognized assets or liabilities, expected transactions that are likely to occur, or with
respect to the components of the above-mentioned project and will affect the profits and losses of the enterprise.
(2.2) Hedging tools and hedged projects
Hedging means a financial instrument designated by the Company for the purpose of hedging, whose fair value
or cash flow variation is expected to offset the fair value or cash flow variation of the hedged item, including:
① Financial liabilities measured at fair value with variations accounted into current income account
Check-out options can only be used as a hedging tool if the option is hedged, including those embedded in a hybrid
contract. Derivatives embedded in a hybrid contract but not split cannot be used as separate hedging tools.
② Non-derivative financial assets or non-derivative financial liabilities that are measured at fair value
and whose changes are included in the current profit and loss, but designated as fair value and whose changes
are included in the current profit and loss, and their own credit risk changes caused by changes in fair value
except for financial liabilities included in other comprehensive income.
Own equity instruments are not financial assets or financial liabilities and cannot be used as hedging
instruments.
A hedged item refers to an item that exposes the Company to the risk of changes in fair value or cash flow
and is designated as the hedged object and can be reliably measured. The Company designates the following
individual projects, project portfolios or their components as hedged projects:
① Confirmed assets or liabilities.
② Confirmed commitments that have not yet been confirmed. Confirmed commitment refers to a legally binding
agreement to exchange a specific amount of resources at an agreed price on a specific date or period in the future.
③ Expected transactions that are likely to occur. Anticipated transactions refer to transactions that have
not yet been committed but are expected to occur.
④ Net investment in overseas operations.
The above-mentioned project components refer to the parts that are less than the overall fair value or cash
flow changes of the project. The Company designates the following project components or their combinations as
hedged items:
① The part of the change in fair value or cash flow (risk component) that is only caused by one or more
specific risks in the overall fair value or cash flow changes of the project. According to the assessment in
a specific market environment, the risk component should be able to be individually identified and reliably
measured. The risk component also includes the part where the fair value or cash flow of the hedged item changes
only above or below a specific price or other variables.
② One or more selected contractual cash flows.
③ The component of the nominal amount of the project, that is, the specific part of the whole amount or
quantity of the project, may be a certain proportion of the whole project, or may be a certain level of the whole
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
project. If a certain level includes early repayment rights and the fair value of the early repayment rights
is affected by changes in the risk of the hedge, the level shall not be designated as the hedged item of the
fair value hedge, but in the measurement of the hedged item except when the fair value has included the influence
of the prepayment right.
(2.3) Evaluation of hedging relationship
When the hedging relationship is initially specified, the Group officially specifies the related hedging
relationships with official documents recording the hedging relationships, risk management targets and hedging
strategies. This document sets out the hedging tools, hedged items, the nature of hedged risks, and the Company's
assessment of hedged effectiveness. Hedging means a financial instrument designated by the Company for the purpose
of hedging, whose fair value or cash flow variation is offset the fair value or cash flow variation of the hedged
item, including: Such hedges are continuously evaluated on and after the initial specified date to meet the
requirements for hedging validity.
If the hedging instrument has expired, been sold, the contract is terminated or exercised (but the extension
or replacement as part of the hedging strategy is not treated as expired or contract termination), or the risk
management objective changes, resulting in hedging The relationship no longer meets the risk management objectives,
or the economic relationship between the hedged item and the hedging instrument no longer exists, or the impact
of credit risk begins to dominate in the value changes caused by the economic relationship between the hedged
item and the hedging instrument, or when the hedge no longer meets the other conditions of the hedge accounting
method, the Company terminates the use of hedge accounting.
If the hedging relationship no longer meets the requirements for hedging effectiveness due to the hedging
ratio, but the risk management objective of the designated hedging relationship has not changed, the Company
shall rebalance the hedging relationship.
(2.4) Validation and measurement
If the strict conditions of the hedging accounting method are satisfied, the following methods shall be
applied:
Cash flow hedging
The part of hedging tool gains or losses that is valid for hedging is recognized as other comprehensive
income as a cash flow hedging reserve, and the part that is invalid for hedging (that is, other gains or losses
after deducting other comprehensive income), are counted Into the current profit and loss. The amount of cash
flow hedging reserve is determined according to the lower of the absolute amounts of the following two items:
①accumulated gains or losses of hedging instruments since the hedging. The amount in the effective arbitrage
is recognized by the accumulative gains or losses from the starting of arbitrage and accumulative changes to
the current value of future forecast cash flows from the start of arbitrage.
If the expected transaction of the hedged asset is subsequently recognized as a non-financial asset or
non-financial liability, or if the expected transaction of the non-financial asset or non-financial liability
forms a defined commitment to the applicable fair value hedge accounting, the amount of the cash flow hedge reserve
originally recognized in the other consolidated income is transferred out to account for the initial recognized
amount of the asset or liability. For the remaining cash flow hedges, during the same period when the expected
cash flow to be hedged affects the profit and loss, if the expected sales occur, the cash flow hedge reserve
recognized in other comprehensive income is transferred out and included in the current profit and loss.
(3) Repurchase of the Company’s shares
(3.1) In the event of a reduction in the Company's share capital as approved by legal procedure, the Company shall reduce the
share capital by the total amount of the written-off shares, adjust the owner's equity by the difference between the price paid by the
purchased stocks (including transaction costs) and the total amount of the written-off shares, offset the capital reserve (share capital
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
premium), surplus reserve and undistributed profits in turn; A portion of a capital reserve (share capital premium) that is less than the
total face value and less than the total face value.
(3.2) The total expenditure of the repurchase shares of the Company, which is managed as an inventory share before they are
cancelled or transferred, is converted to the cost of the inventory shares.
(3.3) Increase in the capital reserve (capital premium) at the time of transfer of an inventory unit, the portion of the transfer
income above the cost of the inventory unit; Lower than the inventory stock cost, the capital reserve (share capital premium), surplus
reserve, undistributed profits in turn.
(4) Significant accounting judgment and estimate
The Group continuously reviews significant accounting judgment and estimate adopted for the reasonable
forecast of future events based on its historical experience and other factors. Significant accounting judgment
and assumptions that may lead to major adjustment of the book value of assets and liabilities in the next accounting
year are listed as follows:
Classification of financial assets
The major judgements involved in the classification of financial assets include the analysis of business
model and contract cash flow characteristics.
The Group determines the business mode of managing financial assets at the level of financial asset portfolio,
taking into account such factors as how to evaluate and report financial asset performance to key managers, the
risks that affect financial asset performance and how to manage it, and how to obtain remuneration for related
business managers.
When the Group assesses whether the contractual cash flow of financial assets is consistent with the basic
borrowing arrangement, there are the following main judgments: whether the principal may change due to early
repayment and other reasons during the duration of the period or the amount of change; whether the interest
Including the time value of money, credit risk, other basic borrowing risks, and consideration of costs and profits.
For example, does the amount paid in advance reflect only the unpaid principal and the interest based on the
unpaid principal, as well as the reasonable compensation paid for early termination of the contract.
Measurement of expected credit losses of accounts receivable
The Group calculates the expected credit loss of accounts receivable through the risk exposure of accounts
receivable default and the expected credit loss rate, and determines the expected credit loss rate based on the
default probability and the default loss rate. When determining the expected credit loss rate, the Company uses
internal historical credit loss experience and other data, combined with current conditions and forward-looking
information to adjust the historical data. When considering forward-looking information, the indicators used
by the Company include the risks of economic downturn, changes in the external market environment, technological
environment, and customer conditions. The Company regularly monitors and reviews assumptions related to the
calculation of expected credit losses.
Deferred income tax assets
If there is adequate taxable profit to deduct the loss, the deferred income tax assets should be recognized
by all the unused tax loss. This requires the management to make a lot of judgment to forecast the time and amount
of future taxable profit and determine the amount of the deferred tax assets based on the taxation strategy.
Revenue recognition (after January 1, 2020)
The Group's revenue from providing curtain wall construction and metro platform screen door installation
services is recognized over a period of time. The recognition of the income and profit of such engineering
installation services depends on the Company's estimation of the contract results and performance progress. If
the actual amount of total revenue and total cost is higher or lower than the estimated value of the management,
it will affect the amount of revenue and profit recognition of the Group in the future.
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Estimate of fair value
The Group uses fair value to measure investment real estate and needs to estimate the fair value of investment
real estate at least quarterly. This requires the management to reasonably estimate the fair value of the
investment real estate with the help of valuation experts.
Development cost
For property that has been handed over with income recognized, but whose public facilities have not been
constructed or not been completed, the management will estimate the development cost for the part that has not
been started according to the budget to reflect the operation result of the property sales.
35. Major changes in accounting policies and estimates
(1) Changes in accounting policies
√ Applicable □ Inapplicable
Account policy changes and reasons Approval procedure Remarks
In December 2018, the Ministry of Finance
revised and issued the accounting
standards for Business Enterprises No. 21 -
leasing (CK [2018] No. 35) (hereinafter
referred to as the "new leasing standards"),
which requires enterprises listed at home
and abroad and enterprises listed abroad
and preparing financial statements using Disclosure source: Announcement on
international financial reporting standards Changes in Accounting Policies on March
Inapplicable
or accounting standards for enterprises to 23, 2021 (http://www.cninfo.com.cn/) on
take effect as of January 1, 2019; Other http://www.cninfo.com.cn/
enterprises implementing the accounting
standards for business enterprises shall be
implemented as of January 1, 2021.
According to the above unified
requirements, the Company needs to make
corresponding changes to the original
accounting policies.
According to the requirements of the new lease standard, the Company will recognize all leased assets (except short-term
leases and low-value asset leases that choose simplified processing) to recognize right-of-use assets and lease liabilities from January
1, 2021, and recognize depreciation and interest expenses respectively.
In the standard convergence policy, simplified treatment is selected, that is, the lease liabilities are equal to the present value of
the remaining lease payment, and the right-of-use asset is equal to the amount of the lease liabilities and necessary adjustments are
made. Using this method will not affect the Company's retained earnings at the beginning of 2021.
Due to the implementation of the new lease standards, the consolidated statements of the Company adjusted the use right
assets of RMB7,208,915.40 yuan, lease liabilities of RMB5,102,002.19 yuan and non-current liabilities due within one year of
RMB2,106,913.21 yuan on January 1, 2021.
At the same time, due to the implementation of the new lease standard, there is no impact on the financial statements of the
parent company of the Company.
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
(2) Changes in major accounting estimates
□ Applicable √ Inapplicable
(3) The first implementation of the new financial instruments guidelines, new lease standards, adjustments
the first implementation of the financial statements at the beginning of the year 2021
Applicable
Whether to adjust the balance sheet accounts at the beginning of the year
√ Yes □ No
Consolidated Balance Sheet
In RMB
Item Thursday, December 31, 2020 Friday, January 1, 2021 Adjustment
Current asset:
Monetary capital 1,463,974,162.44 1,463,974,162.44
Settlement provision 0.00
Outgoing call loan 0.00
Transactional financial
14,382,896.04 14,382,896.04
assets
Derivative financial
6,974,448.22 6,974,448.22
assets
Notes receivable 207,165,063.97 207,165,063.97
Account receivable 616,952,136.19 616,952,136.19
Receivable financing 10,727,129.28 10,727,129.28
Prepayment 24,105,635.39 24,105,635.39
Insurance receivable 0.00
Reinsurance receivable 0.00
Provisions of
Reinsurance contracts 0.00
receivable
Other receivables 162,282,396.88 162,282,396.88
Including: interest
0.00
receivable
Dividend
0.00
receivable
Repurchasing of
0.00
financial assets
Inventory 837,831,790.88 837,831,790.88
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Contract assets 1,433,599,583.48 1,433,599,583.48
Assets held for sales 0.00
Non-current assets due
141,943,454.82 141,943,454.82
in 1 year
Other current assets 233,223,084.51 233,223,084.51
Total current assets 5,153,161,782.10 5,153,161,782.10
Non-current assets:
Loan and advancement
provided
Debt investment
Other debt investment
Long-term receivables
Long-term share equity
55,902,377.95 55,902,377.95
investment
Investment in other
17,628,307.59 17,628,307.59
equity tools
Other non-current
5,025,186.16 5,025,186.16
financial assets
Investment real estate 5,634,648,416.52 5,634,648,416.52
Fixed assets 483,217,323.75 483,217,323.75
Construction in process 168,626,803.01 168,626,803.01
Productive biological
0.00
assets
Gas & petrol 0.00
Use right assets 7,208,915.40 7,208,915.40
Intangible assets 77,201,610.87 77,201,610.87
R&D expense 0.00
Goodwill 0.00
Long-term amortizable
4,581,487.32 4,581,487.32
expenses
Deferred income tax
186,649,335.96 186,649,335.96
assets
Other non-current assets 104,817,688.85 104,817,688.85
Total of non-current assets 6,738,298,537.98 6,745,507,453.38 7,208,915.40
Total of assets 11,891,460,320.08 11,898,669,235.48 7,208,915.40
Current liabilities
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Short-term loans 1,048,250,327.62 1,048,250,327.62
Loans from Central
0.00
Bank
Call loan received 0.00
Transactional financial
liabilities
Derivative financial
915,234.93 915,234.93
liabilities
Notes payable 866,224,515.42 866,224,515.42
Account payable 1,282,847,988.91 1,282,847,988.91
Prepayment received 1,544,655.62 1,544,655.62
Contract liabilities 265,487,113.12 265,487,113.12
Selling of repurchased
0.00
financial assets
Deposit received and
0.00
held for others
Entrusted trading of
0.00
securities
Entrusted selling of
0.00
securities
Employees' wage
60,894,196.78 60,894,196.78
payable
Taxes payable 360,325,524.42 360,325,524.42
Other payables 153,635,067.86 153,635,067.86
Including: interest
payable
Dividend
6,000,000.00 6,000,000.00
payable
Fees and commissions
0.00
payable
Reinsurance fee payable 0.00
Liabilities held for sales
Non-current liabilities
103,359,833.57 105,466,746.78 2,106,913.21
due in 1 year
Other current liabilities 107,688,425.69 107,688,425.69 0.00
Total current liabilities 4,251,172,883.94 4,253,279,797.15 2,106,913.21
Non-current liabilities:
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Insurance contract
provision
Long-term loans 1,099,411,462.35 1,099,411,462.35
Bond payable
Including: preferred
0.00
stock
Perpetual
0.00
bond
Lease liabilities 5,102,002.19 5,102,002.19
Long-term payable
Long-term employees'
wage payable
Anticipated liabilities 33,425,500.13 33,425,500.13
Deferred earning 9,168,492.17 9,168,492.17
Deferred income tax
1,038,084,099.97 1,038,084,099.97
liabilities
Other non-current
liabilities
Total of non-current
2,180,089,554.62 2,185,191,556.81 5,102,002.19
liabilities
Total liabilities 6,431,262,438.56 6,438,471,353.96 7,208,915.40
Owner's equity:
Share capital 1,088,278,951.00 1,088,278,951.00
Other equity tools
Including: preferred
0.00
stock
Perpetual
0.00
bond
Capital reserves 20,459,588.40 20,459,588.40
Less: Shares in stock 42,748,530.12 42,748,530.12
Other miscellaneous
2,078,167.63 2,078,167.63
income
Special reserves
Surplus reserve 106,783,436.96 106,783,436.96
Common risk provisions 0.00
Retained profit 4,217,527,242.56 4,217,527,242.56
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Total of owner's equity
5,392,378,856.43 5,392,378,856.43
belong to the parent company
Minor shareholders'
67,819,025.09 67,819,025.09
equity
Total of owners' equity 5,460,197,881.52 5,460,197,881.52
Total of liabilities and
11,891,460,320.08 11,898,669,235.48 7,208,915.40
owner's interest
About the adjustment
According to the requirements of the new lease standard, the Company will recognize all leased assets (except short-term
leases and low-value asset leases that choose simplified processing) to recognize right-of-use assets and lease liabilities from January
1, 2021, and recognize depreciation and interest expenses respectively.
In the standard convergence policy, simplified treatment is selected, that is, the lease liabilities are
equal to the present value of the remaining lease payment, and the right-of-use asset is equal to the amount
of the lease liabilities and necessary adjustments are made. Using this method will not affect the Company's retained
earnings at the beginning of 2021.
Balance Sheet of the Parent Company
In RMB
Item Thursday, December 31, 2020 Friday, January 1, 2021 Adjustment
Current asset:
Monetary capital 204,828,995.78 204,828,995.78
Transactional financial
assets
Derivative financial
assets
Notes receivable
Account receivable 885,849.08 885,849.08
Receivable financing
Prepayment 1,323,361.34 1,323,361.34
Other receivables 1,156,802,204.91 1,156,802,204.91
Including: interest
receivable
Dividend
receivable
Inventory
Contract assets
Assets held for sales
Non-current assets due
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
in 1 year
Other current assets 1,071,138.13 1,071,138.13
Total current assets 1,364,911,549.24 1,364,911,549.24
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term share equity
1,196,831,253.00 1,196,831,253.00
investment
Investment in other
16,392,331.44 16,392,331.44
equity tools
Other non-current
30,000,001.00 30,000,001.00
financial assets
Investment real estate 334,498,436.00 334,498,436.00
Fixed assets 65,157,481.98 65,157,481.98
Construction in process
Productive biological
assets
Gas & petrol
Use right assets
Intangible assets 1,521,975.72 1,521,975.72
R&D expense
Goodwill
Long-term amortizable
687,202.16 687,202.16
expenses
Deferred income tax
26,592,617.26 26,592,617.26
assets
Other non-current assets
Total of non-current assets 1,671,681,298.56 1,671,681,298.56
Total of assets 3,036,592,847.80 3,036,592,847.80
Current liabilities
Short-term loans 491,503,263.89 491,503,263.89
Transactional financial
liabilities
Derivative financial
liabilities
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Notes payable
Account payable 606,941.85 606,941.85
Prepayment received 927,674.32 927,674.32
Contract liabilities
Employees' wage
3,440,073.04 3,440,073.04
payable
Taxes payable 2,993,196.12 2,993,196.12
Other payables 28,068,648.70 28,068,648.70
Including: interest
payable
Dividend
payable
Liabilities held for sales
Non-current liabilities
due in 1 year
Other current liabilities
Total current liabilities 527,539,797.92 527,539,797.92
Non-current liabilities:
Long-term loans
Bond payable
Including: preferred
stock
Perpetual
bond
Lease liabilities
Long-term payable
Long-term employees'
wage payable
Anticipated liabilities
Deferred earning
Deferred income tax
73,837,511.85 73,837,511.85
liabilities
Other non-current
liabilities
Total of non-current
73,837,511.85 73,837,511.85
liabilities
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Total liabilities 601,377,309.77 601,377,309.77
Owner's equity:
Share capital 1,088,278,951.00 1,088,278,951.00
Other equity tools
Including: preferred
stock
Perpetual
bond
Capital reserves 360,835.52 360,835.52
Less: Shares in stock 42,748,530.12 42,748,530.12
Other miscellaneous
-371,129.71 -371,129.71
income
Special reserves
Surplus reserve 106,783,436.96 106,783,436.96
Retained profit 1,282,911,974.38 1,282,911,974.38
Total of owners' equity 2,435,215,538.03 2,435,215,538.03
Total of liabilities and
3,036,592,847.80 3,036,592,847.80
owner's interest
About the adjustment
The parent company of the Company has no leases other than short-term leases and leases of low-value assets. Therefore, the
implementation of the new lease standards has no impact on the balance sheet of the parent company at the beginning of 2021.
(4) Description of the 2021 first implementation of the new lease standard retrospective adjustment of the
previous period comparison data
□ Applicable √ Inapplicable
VI. Taxation
1. Major taxes and tax rates
Tax Tax basis Tax rate
VAT Taxable income 3%, 5%, 6%, 9%, 13%
City maintenance and construction tax Taxable turnover 1%, 5%, 7%
Enterprise income tax Taxable income See the following table
Education surtax Taxable turnover 3%
Local education surtax Taxable turnover 2%
Tax rates applicable for different tax payers
73
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Tax payer Income tax rate
The Company 25%
Shenzhen FangdaJianke Co., Ltd. (hereinafter FangdaJianke) 15%
FangdaZhichuang Technology Co., Ltd, (FangdaZhichuang) 15%
Fangda New Material (Jiangxi) Co., Ltd. (hereinafter Fangda
15%
New Material)
Dongguan Fangda New Material Co., Ltd. (hereinafter
15%
Dongguan New Material)
Chengdu Fangda Construction Technology Co., Ltd. (hereinafter
15%
Chengdu Fangda)
Shenzhen Fangda Property Development Co., Ltd. (hereinafter
25%
Fangda Property Development)
Shenzhen Fangda New Energy Co., Ltd. (hereinafter Fangda
25%
New Energy)
Shenzhen Fangda Property Development Co., Ltd. (hereinafter
25%
Fangda Property Development)
Jiangxi Fangda Property Development Co., Ltd. (hereinafter
25%
Fangda Property Development)
PingxiangFangdaLuxin New Energy Co., Ltd. (hereinafter Luxin
25%
New Energy)
Nanchang Xinjian Fangda New Energy Co., Ltd. (hereinafter
25%
Xinjian New Energy)
Dongguan Fangda New Energy Co., Ltd. (hereinafter Dongguan
25%
New Energy)
Shenzhen QIanhaiKechuangyuan Software Co., Lt.d (hereinafter
15%
Kechuangyuan Software)
FangdaZhichuang 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 FangdaZhijian Technology Co., Ltd. (hereinafter
15%
referred to as Shanghai Zhijian company)
Shenzhen Fangda Cloud Rail Technology Co., Ltd. (hereinafter
25%
Fangda Cloud Rail)
Shanghai FangdaJianzhi Technology Co., Ltd. (hereinafter
25%
Shanghai Jianzhi)
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Shenzhen ZhongrongLitai Investment Co. Ltd. (ZhongrongLitai) 25%
Chengdu Fangda Curtain Wall Technology Co., Ltd. (hereinafter
25%
Chengdu Curtain Wall)
Fangda Southeast Asia Co., Ltd. 20%
Shenzhen Xunfu Investment Co., Ltd. (hereinafter referred to as
25%
Xunfu Investment)
Shenzhen Lifu Investment Co., Ltd. (hereinafter referred to as
25%
Lifu Investment)
Shenzhen Fangda Investment Partnership (Limited Partnership)
25%
(hereinafter referred to as Fangda Partnership)
FangdaJianke (Hong Kong) Co., Ltd. (hereinafter Jianke Hong
16.50%
Kong)
Shenzhen Yunzhu Industrial Co., Ltd. (Hereinafter Yunzhu) 15%
2. Tax preference
(1) According to the Certification of High-tech Enterprise issued by Shenzhen Commission of Technological Innovation,
Shenzhen Commission of Finance, Shenzhen National Tax Bureau, and Shenzhen Local Tax Bureau, FangdaJianke was entitled to
enjoy a tax preference of enterprise income tax of 15% for three years (2018-2020) since the qualifications were awarded on October
16, 2018.
(2) According to the Certification of High-tech Enterprise issued by Shenzhen Commission of Technological Innovation,
Shenzhen Commission of Finance, Shenzhen National Tax Bureau, and Shenzhen Local Tax Bureau, FangdaZhichuang was entitled
to enjoy a tax preference of enterprise income tax of 15% for three years (2018-2020) since the qualifications were awarded on
October 16, 2018.
(3) According to the Certification of High-tech Enterprise issued by Jiangxi Ministry of Science and Technology, Jiangxi
Ministry of Finance, Jiangxi National Tax Bureau, and Jiangxi Local Tax Bureau, Fangda New Material was entitled to enjoy a tax
preference of enterprise income tax of 15% for three years (2018-2020) since the qualifications were awarded on August 13, 2018.
(3) On December 14, 2017, the subsidiary Chengdu Fangda obtained the “High-tech Enterprise Certificate” jointly issued by
Sichuan Science and Technology Department, Sichuan Provincial Department of Finance, and Sichuan Provincial Taxation Bureau,
within three years after obtaining the qualification of high-tech enterprises (2020 to 2022), the income tax is levied at 15%.
(5) On March 2, 2016, according to the document issued by Luxi National Tax Bureau, the PV power generation project
undertaken by Subsidiary PingxiangFangdaLuxin New Energy Co., Ltd, became the infrastructure project supported by the central
government. the Company enjoys a three-year enterprise income tax relief and 50% reduction for another three years. In 2016, the
Company entered the exemption period.
(6) On June 2, 2016, according to the document issued by Nanchang Xinjian District National Tax Bureau, the PV power
generation project undertaken by Subsidiary Nanchang Xinjian Fangda New Energy Co., Ltd, became the infrastructure project
supported by the central government. the Company enjoys a three-year enterprise income tax relief and 50% reduction for another
three years. In 2016, the Company entered the exemption period.
(7) According to the Official Reply of the State Council on Supporting the Development and Opening-up of the Qianhai
Shenzhen-Hong Kong Modern Service Industry Cooperation Zone in Shenzhen (Guo Han [2012] No. 58) and Notice of the Ministry
75
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
of Finance and the State Administration of Taxation on the Preferential Policies and Preferential Catalogue of Enterprise Income Tax
in the Shenzhen Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone in the Pingtan Comprehensive
Experimental Zone of Fujian, Hengqin New District, Guangdong (CaiShui [2014] No. 26), the subsidiary Kechuangyuan Software
Company is a software and integrated circuit design enterprise, which belongs to the "encouraged industrial enterprise" in the above
provisions, the enterprise income tax shall be levied at a reduced tax rate of 15%.
(8) On December 2, 2019, the subsidiary Dongguan Fangda New Materials Co., Ltd. obtained the “High-tech Enterprise
Certificate” jointly issued by Guangdong Science and Technology Department, Guangdong Provincial Department of Finance, and
Guangdong Provincial Taxation Bureau. The income tax shall be levied at 15% within three years after the qualification of the
high-tech enterprise is recognized (2019 to 2021).
(9) On November 12, 2020, the subsidiary Shanghai Zhijian obtained the certificate of high tech enterprise jointly issued by
Shanghai Science and Technology Commission, Shanghai Finance Bureau and Shanghai Taxation Bureau. Within three years (from
2020 to 2022) after obtaining the qualification of high tech enterprise, the income tax will continue to be charged at 15%.
(10) On December 11, 2020, the subsidiary Yunzhu obtained the certificate of high tech enterprise jointly issued by Shenzhen
Science and Technology Innovation Commission, Shenzhen Finance Commission and Shenzhen State Administration of taxation.
The certificate number is GR202044202438. Within three years after obtaining the qualification of high tech enterprise (2020-2022),
the income tax will be levied at 15%.
VII. Notes to the consolidated financial statements
1. Monetary capital
In RMB
Item Closing balance Opening balance
Inventory cash: 9,176.73 482.09
Bank deposits 919,530,095.12 1,124,691,042.58
Other monetary capital 326,591,888.80 339,282,637.77
Total 1,246,131,160.65 1,463,974,162.44
Including: total amount deposited in
43,416,674.79 45,275,606.68
overseas
The total amount of money that
has restrictions on use due to mortgage, 658,832,074.53 435,587,632.71
pledge or freezing
Other note
(1) Among the bank deposits, RMB364,794,086.20 yuan is restricted, including RMB300 million yuan of time deposits,
RMB35,956,145.59 yuan of deposits restricted by corporate litigation matters, RMB25,207,868.34 yuan of deposits in real estate
development supervision accounts, RMB3,086,104.96 yuan of deposits in special labor insurance accounts and migrant workers'
wages accounts, and RMB543,967.31 yuan of deposits in other guarantee accounts; Among other monetary funds, the use of
restricted funds is RMB294,037,988.33 yuan, mainly including bill deposit, phased guarantee deposit, guarantee deposit for issuing
letter of guarantee, etc. In addition, there are no other funds in the monetary funds at the end of the period that
have restrictions on use and potential recovery risks due to mortgages, pledges or freezing.
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
(2) In the preparation of the cash flow statement, the above-mentioned deposits and other restricted deposits are not used as cash and
cash equivalents.
2. Transactional financial assets
In RMB
Item Closing balance Opening balance
Financial assets measured at fair value
with variations accounted into current 132,493,708.09 14,382,896.04
income account
Including: Investment of financial products 132,493,708.09 14,382,896.04
Total 132,493,708.09 14,382,896.04
3. Derivative financial assets
In RMB
Item Closing balance Opening balance
Futures hedging contract 4,478,375.00 6,330,475.00
Forward foreign exchange contract 618,115.27 643,973.22
Total 5,096,490.27 6,974,448.22
4. Notes receivable
(1) Classification of notes receivable
In RMB
Item Closing balance Opening balance
Bank acceptance 10,854,396.27 21,081,547.58
Commercial acceptance 107,075,434.04 186,083,516.39
Total 117,929,830.31 207,165,063.97
In RMB
Closing balance Opening balance
Remaining book Remaining book
Bad debt provision Bad debt provision
Type value Book value Book
Proportio Provision value Proportio Provision value
Amount Amount Amount Amount
n rate n rate
Including:
Notes receivable with 117,929, 100.00% 117,929,8 207,165,0 100.00% 207,165,0
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
provision for bad 830.31 30.31 63.97 63.97
debts by portfolio
Including:
10,854,3 10,854,39 21,081,54 21,081,54
Bank acceptance 9.20% 10.18%
96.27 6.27 7.58 7.58
Commercial 107,075, 107,075,4 186,083,5 186,083,5
90.80% 89.82%
acceptance 434.04 34.04 16.39 16.39
117,929, 117,929,8 207,165,0 207,165,0
Total 100.00% 100.00%
830.31 30.31 63.97 63.97
If the provision for bad debts of bills receivable is made in accordance with the general model of expected credit losses, please refer
to the disclosure of other receivables to disclose information about bad debts:
□ Applicable √ Inapplicable
(2) The Group has no endorsed or discounted immature receivable notes at the end of the period.
In RMB
Item De-recognized amount Not de-recognized amount
Bank acceptance 1,824,969.42 9,473,266.27
Commercial acceptance 16,889,399.01
Total 1,824,969.42 26,362,665.28
(3) Notes transferred to accounts receivable due to default of the issue at the end of period
In RMB
Amount transferred to accounts receivable at the end of the
Item
period
Commercial acceptance 32,500,000.00
Total 32,500,000.00
5. Account receivable
(1) Account receivable disclosed by categories
In RMB
Closing balance Opening balance
Remaining book Remaining book
Bad debt provision Bad debt provision
Type value Book value
Book value
Proportio Provision value Proportio Provision
Amount Amount Amount Amount
n rate n rate
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Account receivable
for which bad debt 90,074,4 90,074,4 99,969,06 99,969,06
14.69% 100.00% 12.42% 100.00%
provision is made by 40.13 40.13 9.48 9.48
group
Including:
54,873,2 54,873,2 54,873,22 54,873,22
1. Customer 1 8.95% 100.00% 6.82% 100.00%
23.21 23.21 3.21 3.21
21,739,3 21,739,3 21,739,38 21,739,38
2. Customer 2 3.54% 100.00% 2.70% 100.00%
81.96 81.96 1.96 1.96
13,461,8 13,461,8 13,461,83 13,461,83
3. Customer 3 2.20% 100.00% 1.67% 100.00%
34.96 34.96 4.96 4.96
7,270,000 7,270,000
4. Customer 4 0.90% 100.00%
.00 .00
2,624,629 2,624,629
5. Customer 5 0.33% 100.00%
.35 .35
Account receivable
for which bad debt 523,151, 76,738,4 446,412,9 705,506,6 88,554,54 616,952,13
85.31% 14.67% 87.59% 12.55%
provision is made by 364.89 52.81 12.08 80.47 4.28 6.19
group
Including:
1. Portfolio 1:
318,210, 66,810,7 251,400,1 514,227,5 78,043,85 436,183,65
Engineering 51.89% 21.00% 63.84% 15.18%
909.20 54.82 54.38 13.84 6.98 6.86
operations section
2. Portfolio 2: Real
115,113,3 6,381,23 108,732,1 110,059,7 7,310,980 102,748,80
estate business 18.77% 5.54% 13.66% 6.64%
50.31 8.33 11.98 82.48 .25 2.23
payments
3. Portfolio 3: Other 89,827,1 3,546,45 86,280,64 81,219,38 3,199,707 78,019,677.
14.65% 3.95% 10.08% 3.94%
business models 05.38 9.66 5.72 4.15 .05 10
613,225, 166,812, 446,412,9 805,475,7 188,523,6 616,952,13
Total 100.00% 27.20% 100.00% 23.41%
805.02 892.94 12.08 49.95 13.76 6.19
Separate bad debt provision:
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate Reason
Customer credit status
Customer 1 54,873,223.21 54,873,223.21 100.00% deteriorates and is hard
to recover
Customer credit status
Customer 2 21,739,381.96 21,739,381.96 100.00%
deteriorates and is hard
79
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
to recover
Customer credit status
Customer 3 13,461,834.96 13,461,834.96 100.00% deteriorates and is hard
to recover
Total 90,074,440.13 90,074,440.13 -- --
Provision for bad debts by combination: Portfolio 1: Engineering business
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 154,496,568.47 3,028,413.77 1.96%
1-2 years 44,607,842.82 2,524,852.40 5.66%
2-3 years 33,976,090.42 4,335,323.23 12.76%
3-4 years 14,681,954.21 2,901,154.15 19.76%
4-5 years 28,901,199.88 12,473,757.87 43.16%
Over 5 years 41,547,253.40 41,547,253.40 100.00%
Total 318,210,909.20 66,810,754.82 --
Bad debt provision by portfolio: portfolio 2: real estate business funds
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 58,678,054.75 586,780.54 1.00%
1-2 years 4,435,295.56 221,764.78 5.00%
2-3 years 22,273,070.00 1,113,653.50 5.00%
4-5 years 29,726,930.00 4,459,039.51 15.00%
Total 115,113,350.31 6,381,238.33 --
Provision for bad debts by combination: portfolio 3: Others business
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 46,022,790.55 375,283.28 0.73%
1-2 years 19,993,830.52 408,742.29 2.10%
2-3 years 19,759,890.58 1,628,051.85 8.42%
3-4 years 3,845,643.61 954,088.96 24.78%
4-5 years 182,238.29 157,581.45 86.47%
Over 5 years 22,711.83 22,711.83 100.00%
80
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Total 89,827,105.38 3,546,459.66 --
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, please
refer to the disclosure of other receivables to disclose information about bad debts:
□ Applicable √ Inapplicable
Account age
In RMB
Age Closing balance
Within 1 year (inclusive) 259,197,413.77
1-2 years 69,196,361.13
2-3 years 79,310,331.56
Over 3 years 205,521,698.56
3-4 years 29,977,612.72
4-5 years 68,364,402.40
Over 5 years 107,179,683.44
Total 613,225,805.02
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.6 – Listed Companies Engaged in Decoration Business.
Balance of accounts Balance of provision for Whether there is a
Customer Reason of the age
receivable of over 3 years bad debts risk of recovery
Customer 1 53,862,071.05 53,862,071.05 Customer credit status Yes
deteriorates
Customer 2 19,289,861.33 19,289,861.33 Customer credit status Yes
deteriorates
Customer 3 13,461,834.96 13,461,834.96 Customer credit status Yes
deteriorates
Customer 4 17,374,148.42 17,295,727.82 Customer credit status Yes
deteriorates
Total 103,987,915.76 103,909,495.16
(2) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Type Opening balance Written-back or Closing balance
Provision Canceled Others
recovered
Separate bad debt
99,969,069.48 7,270,000.00 2,624,629.35 90,074,440.13
provision
81
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Provision for bad
debts by 88,554,544.28 -11,443,432.01 372,659.46 76,738,452.81
combination
Total 188,523,613.76 -11,443,432.01 7,270,000.00 2,997,288.81 0.00 166,812,892.94
Including significant recovery or reversal:
In RMB
Entity Written-back or recovered amount Method
Zhejiang Jiayue Industrial Co., Ltd. 7,270,000.00 Settlement recovery
Total 7,270,000.00 --
(3) Written-off account receivable during the period
In RMB
Item Amount
Engineering receivables 2,997,288.81
(4) Balance of top 5 accounts receivable at the end of the period
In RMB
Closing balance of accounts Balance of bad debt provision at
Entity Percentage (%)
receivable the end of the period
Customer 1 56,823,678.84 9.27% 5,690,277.99
Customer 2 54,873,223.21 8.95% 54,873,223.21
Customer 3 31,500,000.00 5.14% 617,400.00
Customer 4 30,142,992.93 4.92% 1,049,162.02
Customer 5 22,633,721.50 3.69% 1,994,412.39
Total 195,973,616.48 31.97%
(5) Receivables derecognized due to transfer of financial assets
Gain or loss related to the
Customer Way of transfer De-recognized amount
de-recognition
Customer 1 Factoring 6,012,240.28 -238,802.84
Customer 2 Factoring 7,625,631.21 -285,712.87
Customer 3 Factoring 11,897,246.28 -496,531.57
Customer 4 Factoring 5,328,588.41 -319,815.81
Customer 5 Factoring 9,897,439.00 -791,795.12
82
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Customer 6 Factoring 1,608,410.51 -66,671.30
Customer 7 Factoring 10,000,000.00 -178,597.08
Customer 8 Factoring 3,200,196.11 -159,527.93
Customer 9 Factoring 5,093,647.78 -201,600.83
Customer 10 Factoring 3,242,714.47 -126,141.59
Customer 11 Factoring 9,390,000.00 -167,702.78
Total 73,296,114.05 -3,032,899.72
6. Receivable financing
In RMB
Item Closing balance Opening balance
Notes receivable 23,798,104.10 10,727,129.28
Total 23,798,104.10 10,727,129.28
Increase or decrease in the current period of receivables financing and changes in fair value
□ Applicable √ Inapplicable
If the provision for financing impairment of receivables is accrued in accordance with the general expected credit loss model, please
refer to the disclosure of other receivables to disclose the relevant information of the impairment provision:
□ Applicable √ Inapplicable
7. Prepayment
(1) Account age of prepayments
In RMB
Closing balance Opening balance
Age
Amount Proportion Amount Proportion
Less than 1 year 18,729,843.52 77.63% 18,880,088.01 78.32%
1-2 years 1,887,107.72 7.82% 3,080,312.85 12.78%
2-3 years 1,707,116.28 7.08% 1,156,139.70 4.80%
Over 3 years 1,802,051.67 7.47% 989,094.83 4.10%
Total 24,126,119.19 -- 24,105,635.39 --
(2) Balance of top 5 prepayments at the end of the period
The total of top5 prepayments in terms of the prepaid entities in the period is RMB8,689,564.47, accounting for 36.02% of the total
prepayments at the end of the period.
83
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
8. Other receivables
In RMB
Item Closing balance Opening balance
Interest receivable 1,601,660.58 0.00
Dividend receivable 0.00
Other receivables 166,997,627.69 162,282,396.88
Total 168,599,288.27 162,282,396.88
(1) Receivable interest
1) Receivable interest
In RMB
Item Closing balance Opening balance
Time deposit 1,601,660.58
Total 1,601,660.58 0.00
2) Method of bad debt provision
□ Applicable √ Inapplicable
(2) Other receivables
1) Other receivables are disclosed by nature
In RMB
By nature Closing balance of book value Opening balance of book value
Deposit 105,115,483.57 103,782,569.80
Construction borrowing and advanced
53,675,374.44 34,052,644.05
payment
Staff borrowing and petty cash 2,685,748.34 1,717,094.83
Receivable refund of VAT 422,914.58 548,129.42
Debt by Luo Huichi 12,992,291.48 12,992,291.48
Others 15,170,689.10 12,502,878.08
Total 190,062,501.51 165,595,607.66
2) Method of bad debt provision
In RMB
84
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
First stage Second stage Third stage
Expected credit Expected credit loss for the Expected credit loss for the
Bad debt provision Total
losses in the next 12 entire duration (no credit entire duration (credit
months impairment) impairment has occurred)
Balance on Friday,
2,253,521.41 572,176.59 21,456,358.87 24,282,056.87
January 1, 2021
Balance on Friday,
January 1, 2021 in the —— —— —— ——
current period
Provision 203,817.68 13,494.90 -1,357,296.63 -1,139,984.05
Canceled in the current
77,199.00 77,199.00
period
Balance on Wednesday,
2,457,339.09 585,671.49 20,021,863.24 23,064,873.82
June 30, 2021
Changes in book balances with significant changes in the current period
□ Applicable √ Inapplicable
Account age
In RMB
Age Closing balance
Within 1 year (inclusive) 54,856,468.07
1-2 years 11,670,871.98
2-3 years 81,146,799.81
Over 3 years 42,388,361.65
3-4 years 21,134,527.37
4-5 years 1,365,756.20
Over 5 years 19,888,078.08
Total 190,062,501.51
3) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Type Opening balance Written-back or Closing balance
Provision Canceled Others
recovered
Other receivables
and bad debt 24,282,056.87 -1,139,984.05 77,199.00 23,064,873.82
provision
85
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Total 24,282,056.87 -1,139,984.05 77,199.00 23,064,873.82
4) Other receivable written off in the current period
In RMB
Item Amount
Other receivable written off 77,199.00
5) Balance of top 5 other receivables at the end of the period
In RMB
Balance of bad debt
Entity By nature Closing balance Age Percentage (%) provision at the end
of the period
Shenzhen Yikang Deposit and
70,000,000.00 2-3 years 36.83% 1,043,000.00
Real Estate Co. Ltd. advancement
Bangshen
Electronics Deposit 20,000,000.00 3-4 years 10.52% 298,000.00
(Shenzhen) Co., Ltd.
Shenzhen Rijiasheng
Advancement 18,808,945.57 Less than 1 year 9.90% 564,268.37
Trading Co., Ltd
Luo Huichi Debt by Luo Huichi 12,992,291.48 Over 5 years 6.84% 12,992,291.48
Shenzhen
HenggangDakang Deposit 8,044,000.00 2-3 years 4.23% 119,855.60
Co., Ltd.
Total -- 129,845,237.05 -- 68.32% 15,017,415.45
9. Inventories
Whether the Company needs to comply with disclosure requirements of the real estate industry.
Yes
(1) Classification of inventories
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.3 – Listed Companies Engaged in Property Development.
Classified by nature:
In RMB
Item Closing balance Opening balance
86
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Provision for Provision for
inventory inventory
depreciation or depreciation or
Remaining book Remaining book
contract Book value contract Book value
value value
performance cost performance cost
impairment impairment
provision provision
Development cost 210,828,927.04 210,828,927.04 458,032,158.63 458,032,158.63
Development
312,870,562.69 312,870,562.69 99,012,986.31 99,012,986.31
products
Contract
performance 92,016,666.73 464,651.43 91,552,015.30 140,403,466.43 464,651.43 139,938,815.00
costs
Raw materials 83,466,750.73 55,182.86 83,411,567.87 61,682,744.96 55,182.86 61,627,562.10
Product in
55,364,191.11 55,364,191.11 66,570,800.79 66,570,800.79
process
Finished goods in
11,358,399.61 11,358,399.61 7,784,598.06 7,784,598.06
stock
Low price
166,748.73 166,748.73 123,705.51 123,705.51
consumable
OEM materials 5,418,418.28 5,418,418.28 3,562,856.58 3,562,856.58
Materials in
3,723,431.52 3,723,431.52 1,178,307.90 1,178,307.90
transit
Total 775,214,096.44 519,834.29 774,694,262.15 838,351,625.17 519,834.29 837,831,790.88
Development cost and capitalization rate of its interest are disclosed as follows:
In RMB
Transferr
Increase Including:
ed to
Estimated Other (develop Accumula capitalize
Estimated developm
Starting total Opening decrease ment Closing tive d interest Capital
Item finish ent
time investmen balance in this cost) in balance capitalize for the source
time product in
t period this d interest current
this
period period
period
Nanchang Tuesday, Tuesday,
670,000,0 250,191,6 223,823,8 26,367,73
Fangda May 1, April 27,
00.00 19.08 80.71 8.37 Bank loan
Center 2018 2021
and
Dakang
1 31 self-owne
Village 3,600,000 197,352,0 683,524.3 198,035,5
December December d fund
Project in ,000.00 43.69 9 68.08
2023 2029
Shenzhen
87
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
FangdaBa
1 31
ngshen 870,000,0 10,488,49 2,304,863 12,793,35
December December
Industry 00.00 5.86 .10 8.96
2022 2024
Park
5,140,000 458,032,1 223,823,8 26,367,73 2,988,387 210,828,9
Total -- -- --
,000.00 58.63 80.71 8.37 .49 27.04
Disclose the main project information of "Development Products" according to the following format:
In RMB
Including:
Accumulative
Completion Opening capitalized
Item Increase Decrease Closing balance capitalized
time balance interest for the
interest
current period
Phase I of Thursday,
Fangda December 99,012,986.31 10,093,492.33 88,919,493.98 3,433,223.79
Town 29, 2016
Nanchang Tuesday,
223,823,880.7
Fangda April 27, 223,823,880.71 9,813,470.29 1,537,383.71
1
Center 2021
223,823,880.7
Total -- 99,012,986.31 10,093,492.33 312,743,374.69 13,246,694.08 1,537,383.71
1
(2) Provision for inventory depreciation and contract performance cost impairment provision
The inventory depreciation provision is disclosed as follows:
Classified by nature:
In RMB
Increase in this period Decrease in this period
Opening Closing
Item Recover or Remarks
balance Provision Others Others balance
write-off
Contract
performance 464,651.43 464,651.43
costs
Raw materials 55,182.86 55,182.86
Total 519,834.29 519,834.29 --
(3) Capitalization rate of interest in the closing inventory balance
As at June 30, 2021, the amount of the capitalization of borrowing costs in the balance of the end-of-period inventory was
RMB13,246,694.08.
88
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
(4) Restriction of inventory
Restricted inventory is disclosed by project
In RMB
Item Opening balance Closing balance Reason
Nanchang Fangda Center 103,973,925.13 87,429,489.76 Credit Mortgage, Mortgage Loan
Total 103,973,925.13 87,429,489.76 --
10. Contract assets
In RMB
Closing balance Opening balance
Item Remaining Impairment Remaining Impairment
Book value Book value
book value provision book value provision
Sales funds with conditional
42,793,840.93 1,215,396.98 41,578,443.95 27,639,344.20 351,544.65 27,287,799.55
collection right
Completed but unsettled 1,762,114,432. 1,620,676,114. 1,540,146,004.
141,438,318.05 146,024,200.75 1,394,121,804.00
assets 79 74 75
Unexpired warranty deposit 692,613.72 14,158.36 678,455.36 12,536,462.04 346,482.11 12,189,979.93
1,805,600,887. 1,662,933,014. 1,580,321,810.
Total 142,667,873.39 146,722,227.51 1,433,599,583.48
44 05 99
The amount and reasons for major changes in the book value of contract assets during the current period:
In RMB
Item Change Reason
It is mainly due to the sales payment with conditional collection
Sales funds with conditional
14,290,644.40 right arising from the recognized product sales revenue in the
collection right
current period
It is mainly caused by the unsettled assets with conditional
Completed but unsettled
226,554,310.74 collection right generated from the revenue recognized in the
assets
project contract this period
Total 240,844,955.14 ——
If the provision for bad debts of contract assets is made in accordance with the general model of expected credit losses, please refer to
the disclosure of other receivables to disclose information about bad debts:
□ Applicable √ Inapplicable
Provision made for bad debts of contract assets in this period
In RMB
Transferred back in the Written off in the current
Item Provision Reason
current period period
89
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Sales funds with
conditional collection 863,852.33
right
The reversal of 7.33
million yuan in the
current period is due to
the reconciliation and
Completed but unsettled
2,744,117.30 7,330,000.00 recovery in the current
assets
period after the
individual full provision
for impairment in the
previous period.
Unexpired warranty
-332,323.75
deposit
Total 3,275,645.88 7,330,000.00 --
11. Non-current assets due in 1 year
In RMB
Item Closing balance Opening balance
Contract assets due within one year 107,518,641.70 159,410,690.57
Less: provision for impairment 16,436,432.64 17,467,235.75
Total 91,082,209.06 141,943,454.82
12. Other current assets
In RMB
Item Closing balance Opening balance
Tax to be input 122,632,551.19 136,812,357.07
Prepaid income tax 86,196,746.29 88,741,787.42
Other prepaid taxes 20,253,761.57 2,373,031.15
Deferred discount expense 6,170,627.16 2,644,267.12
Contract acquisition cost 2,156,027.17
Others 6,225.36 495,614.58
Total 235,259,911.57 233,223,084.51
13. Long-term share equity investment
In RMB
90
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Change (+,-) Balance
Investme of
Other
nt gain Cash impairme
Opening Decrease miscellan Closing
Invested Increased and loss Other dividend Impairme nt
book d eous book
entity investmen recognize equity or profit nt Others provision
value investmen income value
t d using change announce provision at the end
t adjustmen
the equity d of the
t
method period
1. Joint venture
2. Associate
Shenzhen
Ganshang
Joint 2,364,798 2,365,203
404.53
Investme .65 .18
nt Co.,
Ltd.
Jiangxi
Business
Innovativ
e 53,537,57 -453,298. 53,084,28
Property 9.30 18 1.12
Joint
Stock
Co., Ltd.
55,902,37 -452,893. 55,449,48
Subtotal
7.95 65 4.30
55,902,37 -452,893. 55,449,48
Total
7.95 65 4.30
14. Investment in other equity tools
In RMB
Item Closing balance Opening balance
Unlisted equity instrument investment 17,398,629.00 17,628,307.59
Total 17,398,629.00 17,628,307.59
Sub-disclosure of non-tradable equity instrument investment in the current period
In RMB
Dividend Amount of other Reason for Reason for
Item recognized in the Total gain Total loss comprehensive measurement at transfer of other
period income fair value with miscellaneous
91
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
transferred to variations into income
retained earnings accounted into
current income
account
Shenyang Fangda 12,170,244.23
Shenzhen
HuihaiYirong
2,772,979.96
Internet Service
Co., Ltd.
15. Other non-current financial assets
In RMB
Item Closing balance Opening balance
Financial assets measured at fair value
with variations accounted into current 5,198,015.90 5,025,186.16
income account
Total 5,198,015.90 5,025,186.16
16. Investment real estates
(1) Investment real estate measured at costs
√ Applicable □ Inapplicable
In RMB
Item Houses & buildings Total
I. Book value
1. Opening balance 10,410,691.87 10,410,691.87
2. Increase in this period 6,978,132.52 6,978,132.52
(1) Transfer-in from inventory\fixed
6,978,132.52 6,978,132.52
assets\construction in progress
3. Decrease in this period 0.00 0.00
4. Closing balance 17,388,824.39 17,388,824.39
II. Accumulative depreciation and
amortization
1. Opening balance 4,053,723.75 4,053,723.75
2. Increase in this period 2,974,583.59 2,974,583.59
(1) Provision or amortization 209,680.87 209,680.87
(2) Other transfer-in 2,764,902.72 2,764,902.72
92
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
3. Decrease in this period
4. Closing balance 7,028,307.34 7,028,307.34
III. Impairment provision
1. Opening balance
2. Increase in this period
3. Decrease in this period
4. Closing balance
IV. Book value
1. Closing book value 10,360,517.05 10,360,517.05
2. Opening book value 6,356,968.12 6,356,968.12
(2) Investment real estate measured at fair value
√ Applicable □ Inapplicable
In RMB
Item Houses & buildings Total
I. Opening balance 5,628,291,448.40 5,628,291,448.40
II. Change in this period 7,542,132.99 7,542,132.99
Add: external purchase 11,083,112.99 11,083,112.99
Transfer-in from inventory\fixed
8,987,340.00 8,987,340.00
assets\construction in progress
Less: other transfer-out 12,528,320.00 12,528,320.00
III. Closing balance 5,635,833,581.39 5,635,833,581.39
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.3 – Listed Companies Engaged in Property Development.
Disclosure of investment real estate measured at fair value by projects
In RMB
Rental
Completio Building income in Opening Closing fair Change in Reason for the
Item Location
n time area the report fair value value fair value change and report
period
11
Commercial podium 16,719,17 1,340,385, 1,340,385,948.
Shenzhen October 22,565.42
of Fangda Town 4.95 948.00 00
2017
29
Building 1# of Fangda 34,936,18 3,646,971, 3,646,971,680.
Shenzhen December 72,517.71
Town 1.89 680.07 07
2018
93
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
28
7,361,567. 334,498,4
Fangda Building Shenzhen December 17,604.12 330,957,456.00 -1.06%
20 36.00
2002
Tuesday,
Nanchang Fangda 302,854,5
Nanchang April 27, 32,354.44 313,937,667.32 3.66%
Center 54.33
2021
145,041.6 59,016,92 5,624,710, 5,632,252,751.
Total —— —— 0.13% ——
9 4.04 618.40 39
Whether the Company has investment real estate in the current construction period
□ Yes √ No
Whether there is new investment real estate measured at fair value in the report period
□ Yes √ No
(3) Investment real estate without ownership certificate
In RMB
Item Book value Reason
Conditions for applying for property right
Nanchang Fangda Center 313,937,667.32
are not met
17. Fixed assets
In RMB
Item Closing balance Opening balance
Fixed assets 566,440,865.19 481,326,212.63
Disposal of fixed assets 1,891,111.12
Total 566,440,865.19 483,217,323.75
(1) Fixed assets
In RMB
Houses & Mechanical Transportation Electronics and
Item PV power plants Total
buildings equipment facilities other devices
I. Original book
value:
1. Opening
415,725,429.92 121,496,328.96 21,516,442.64 46,349,557.98 129,596,434.84 734,684,194.34
balance
2. Increase in
106,511,868.90 1,639,089.37 275,730.08 814,682.92 109,241,371.27
this period
94
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
(1) Purchase 12,224,293.06 1,639,089.37 275,730.08 814,682.92 14,953,795.43
(2)
Transfer-in of
81,759,255.84 81,759,255.84
construction in
progress
(3) Increase
due to enterprise
merger
(4) Other
12,528,320.00 12,528,320.00
increases
3. Decrease in
14,818,152.52 3,269,796.62 439,458.08 405,887.75 18,933,294.97
this period
(1) Disposal
3,269,706.62 439,458.08 386,783.23 4,095,947.93
or retirement
(2) Other
14,818,152.52 90.00 19,104.52 14,837,347.04
decrease
4. Closing
511,745,585.15 119,865,621.71 21,352,714.64 46,758,353.15 129,596,434.84 829,318,709.49
balance
II. Accumulative
depreciation
1. Opening
89,797,346.50 89,670,126.47 16,097,483.98 29,337,279.16 28,357,356.10 253,259,592.21
balance
2. Increase in
5,960,601.60 2,111,534.26 356,399.79 982,359.12 3,074,220.06 12,485,114.83
this period
(1) Provision 5,960,601.60 2,111,534.26 356,399.79 982,359.12 3,074,220.06 12,485,114.83
3. Decrease in
3,629,719.64 2,780,502.19 389,373.35 490,175.91 7,289,771.09
this period
(1) Disposal
2,780,502.19 389,373.35 346,138.26 3,516,013.80
or retirement
(2) Other
3,629,719.64 144,037.65 3,773,757.29
decrease
4. Closing
92,128,228.46 89,001,158.54 16,064,510.42 29,829,462.37 31,431,576.16 258,454,935.95
balance
III. Impairment
provision
1. Opening
41,621.81 56,767.69 98,389.50
balance
95
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
2. Increase in
this period
3. Decrease in
1,920.00 1,920.00
this period
(1) Disposal
1,920.00 1,920.00
or retirement
4. Closing
39,701.81 56,767.69 96,469.50
balance
IV. Book value
1. Closing
419,617,356.69 30,824,761.36 5,288,204.22 16,872,123.09 98,164,858.68 570,767,304.04
book value
2. Opening
325,928,083.42 31,784,580.68 5,418,958.66 16,955,511.13 101,239,078.74 481,326,212.63
book value
(2) Fixed assets without ownership certificate
In RMB
Item Book value Reason
Houses in Urumuqi for offsetting debt 490,848.03 Historical reasons
Yuehai Office Building C 502 121,526.97 Historical reasons
Construction of Chengdu FangdaXinjin In the process of applying for property
25,624,991.38
Base right certificate
(3) Disposal of fixed assets
In RMB
Item Closing balance Opening balance
Jiangxi new material South Korea
1,891,111.12
composite aluminum plate production line
Total 1,891,111.12
18. Construction in process
In RMB
Item Closing balance Opening balance
Construction in process 98,594,455.15 168,626,803.01
Total 98,594,455.15 168,626,803.01
96
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
(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 78,213,965.55 78,213,965.55
Building 1 of
Fangda Town
Fangda Group
East China
98,195,599.66 98,195,599.66 90,101,031.20 90,101,031.20
Construction
Base Project
Design of
intelligent gluing 23,242.53 23,242.53 23,242.53 23,242.53
robot
Standard
288,563.73 288,563.73 288,563.73 288,563.73
production line
Environmental
protection
87,049.23 87,049.23
equipment of
Xinjin base
Total 98,594,455.15 98,594,455.15 168,626,803.01 168,626,803.01
(2) Changes in major construction in process in this period
In RMB
Proporti
Includin
Amount on of
g:
transfer-i accumul Accumul
Other capitaliz
Increase n to ative ative Interest
Opening decrease Closing Project ed Capital
Item Budget in this fixed engineeri capitaliz capitaliz
balance in this balance progress interest source
period assets in ng ed ation rate
period for the
this investme interest
current
period nt in the
period
budget
Construc
82,840,0 78,213,9 3,545,29 81,759,2 Complet 3,253,13 Self-own
tion and 98.70%
00.00 65.55 0.29 55.84 ed 6.04 ed fund
decoratio
97
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
n of
self-use
part of
Building
1 of
Fangda
Town
Fangda Loans
Group from
East In financial
105,060, 90,101,0 8,094,56 98,195,5 3,703,58 1,067,73
China 93.47% construct 5.46% institutio
000.00 31.20 8.46 99.66 1.41 2.34
Construc ion ns+
tion Base self-own
Project ed fund
187,900, 168,314, 11,639,8 81,759,2 98,195,5 6,956,71 1,067,73
Total -- -- --
000.00 996.75 58.75 55.84 99.66 7.45 2.34
19. Use right assets
In RMB
Item Houses & buildings Transportation facilities Total
1. Opening balance 5,889,664.28 1,319,251.12 7,208,915.40
2. Increase in this period 20,997,165.18 20,997,165.18
4. Closing balance 26,886,829.46 1,319,251.12 26,886,829.46
2. Increase in this period 2,136,566.18 304,531.63 2,441,097.81
(1) Provision 2,136,566.18 304,531.63 2,441,097.81
4. Closing balance 2,136,566.18 304,531.63 2,441,097.81
1. Closing book value 24,750,263.28 1,014,719.49 25,764,982.77
2. Opening book value 5,889,664.28 1,319,251.12 7,208,915.40
20. Intangible assets
(1) Intangible assets
In RMB
Unpatented
Item Land using right Patent Software Total
technologies
I. Book value
1. Opening 80,404,737.13 8,982,747.17 19,357,024.16 108,744,508.46
98
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
balance
2. Increase in
1,450,061.46 1,450,061.46
this period
(1) Purchase 1,450,061.46 1,450,061.46
3. Decrease in this
period
4. Closing
80,404,737.13 8,982,747.17 20,807,085.62 110,194,569.92
balance
II. Accumulative
amortization
1. Opening
15,075,529.76 8,472,024.78 7,995,343.05 31,542,897.59
balance
2. Increase in
1,147,670.62 103,185.07 859,768.58 2,110,624.27
this period
(1) Provision 1,147,670.62 103,185.07 859,768.58 2,110,624.27
3. Decrease in
this period
4. Closing
16,223,200.38 8,575,209.85 8,855,111.63 33,653,521.86
balance
III. Impairment
provision
1. Opening
balance
2. Increase in
this period
3. Decrease in
this period
4. Closing
balance
IV. Book value
1. Closing book
64,181,536.75 407,537.32 11,951,973.99 76,541,048.06
value
2. Opening
65,329,207.37 510,722.39 11,361,681.11 77,201,610.87
book value
(2) Failure to obtain the land use right certificates
At the end of the period, the Company had no land use right without the property right certificate.
99
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
21. Long-term amortizable expenses
In RMB
Increase in this Amortized amount
Item Opening balance Other decrease Closing balance
period in this period
Decoration cost of
headquarters of
2,925,988.72 166,589.69 2,759,399.03
Fangda Town
building No.1
XuanfengChayuan
village and Zhuyuan
1,084,628.66 28,050.78 1,056,577.88
village land transfer
compensation
Waterproofing works
for employee 631,470.05 79,291.98 552,178.07
dormitories
Warehouse addition
and renovation 572,782.87 120,489.30 452,293.57
project
Plant ground
reconstruction 406,755.71 64,727.88 43,581.00 427,902.59
project
Property insurance
360,772.95 79,923.61 116,279.12 324,417.44
premium
Membership fees 413,749.88 15,000.00 117,500.04 311,249.84
Rectification works
of rainwater and
328,751.71 21,916.80 306,834.91
sewage diversion
pipeline
Others 1,111,327.20 108,306.80 402,237.48 817,396.52
Total 4,581,487.32 3,522,698.72 1,095,936.19 7,008,249.85
22. Differed income tax assets and differed income tax liabilities
(1) Non-deducted deferred income tax assets
In RMB
Closing balance Opening balance
Item
Deductible temporary Deferred income tax Deductible temporary Deferred income tax
100
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
difference assets difference assets
Assets impairment
245,456,559.19 46,067,705.01 263,315,510.54 38,465,248.35
provision
Unrealized profit of
135,859,744.95 33,964,936.24 135,859,744.95 33,964,936.24
internal transactions
Deductible loss 98,962,421.46 36,608,601.11 122,522,156.58 29,105,371.97
Credit impairment
209,492,239.65 33,697,512.85 212,717,683.70 44,512,473.69
provision
Unrealizable gross profit 118,170,953.89 28,937,296.23 130,105,754.96 31,898,500.96
Anticipated liabilities 30,000,528.43 7,068,448.87 33,425,500.13 7,715,527.38
Deferred earning 2,155,083.48 318,970.24 2,314,029.86 342,765.63
Change in fair value 631,192.72 94,678.94 1,520,569.70 228,085.49
Others 1,679,786.49 416,426.25
Total 840,728,723.77 186,758,149.49 903,460,736.91 186,649,335.96
(2) Non-deducted deferred income tax liabilities
In RMB
Closing balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
Change in fair value 4,126,613,255.88 1,031,205,476.48 4,126,893,826.17 1,031,090,409.04
Estimated gross profit at
the time when the
recognized income of the 4,152,000.00 1,038,000.00
real estate project fails to
meet the tax obligation
Acquire premium to form
1,535,605.48 383,901.37 1,535,605.47 383,901.37
inventory
Rental income 28,631,156.82 7,157,789.20 26,439,158.17 6,609,789.56
Total 4,160,932,018.18 1,039,785,167.05 4,154,868,589.81 1,038,084,099.97
(3) Net deferred income tax assets or liabilities listed
In RMB
Offset balance of Deferred income tax Offset balance of
Deferred income tax
deferred income tax assets and liabilities at deferred income tax
Item assets and liabilities at
assets or liabilities after the beginning of the assets or liabilities after
the end of the period
offsetting period offsetting
101
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Deferred income tax
186,758,149.49 186,649,335.96
assets
Deferred income tax
1,039,785,167.05 1,038,084,099.97
liabilities
(4) Details of unrecognized deferred income tax assets
In RMB
Item Closing balance Opening balance
Deductible temporary difference 56,487.23 130,889.01
Deductible loss 6,884,305.40 7,336,111.24
Total 6,940,792.63 7,467,000.25
(5) Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Closing amount Opening amount Remarks
2022 1,270,623.72 1,270,623.72
2023 4,575,983.46 4,575,983.46
2024 789,748.15 1,276,235.76
2025 117,456.13 213,268.30
2026 130,493.94
Total 6,884,305.40 7,336,111.24 --
23. Other non-current assets
In RMB
Closing balance Opening balance
Item Remaining Impairment Remaining Impairment
Book value Book value
book value provision book value provision
98,819,964.7 90,747,550.7 81,494,380.5 75,081,808.6
Contract assets 8,072,414.04 6,412,571.95
4 0 6 1
16,557,772.4 16,557,772.4 29,735,880.2 29,735,880.2
Prepaid house and equipment amount
2 2 4 4
115,377,737. 107,305,323. 111,230,260. 104,817,688.
Total 8,072,414.04 6,412,571.95
16 12 80 85
102
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
24. Short-term borrowings
(1) Classification of short-term borrowings
In RMB
Item Closing balance Opening balance
Loan by pledge 30,045,466.66
Guarantee loan 10,012,083.34 200,013,291.68
Credit borrow 490,203,611.11 346,029,354.19
Discount loans such as bills of
exchange 674,415,505.30 472,162,215.09
Total 1,174,631,199.75 1,048,250,327.62
25. Derivative financial liabilities
In RMB
Item Closing balance Opening balance
Forward foreign exchange contract 915,234.93
Total 915,234.93
26. Notes payable
In RMB
Type Closing balance Opening balance
Commercial acceptance 144,096,887.36 651,222,454.25
Bank acceptance 540,201,722.38 215,002,061.17
Total 684,298,609.74 866,224,515.42
The total amount of bills payable due and unpaid at the end of the period was RMB7,128,013.05 yuan, which was caused by the
other party's failure to prompt for payment.
27. Account payable
(1) Account payable
In RMB
Item Closing balance Opening balance
Account repayable and engineering
807,191,590.64 884,174,693.50
repayable
103
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Construction payable 22,116,236.64 98,783,841.73
Payable installation and implementation
294,400,555.72 295,439,323.67
fees
Others 4,252,626.14 4,450,130.01
Total 1,127,961,009.14 1,282,847,988.91
(2) Significant payables aging more than 1 year
In RMB
Item Closing balance Reason
Supplier 1 76,327,378.14 Not mature
Supplier 2 19,433,026.36 Not mature
Supplier 3 18,646,902.62 Not mature
Total 114,407,307.12 --
28. Prepayment received
(1) Prepayment received
In RMB
Item Closing balance Opening balance
Rent and others 3,726,440.79 1,544,655.62
Total 3,726,440.79 1,544,655.62
29. Contract liabilities
In RMB
Item Closing balance Opening balance
Project funds collected in advance 136,552,610.74 195,922,455.76
Real estate sales payment 27,779,823.59 62,466,576.69
Payment for materials, etc 2,583,050.70 7,098,080.67
Total 166,915,485.03 265,487,113.12
The amount and reason for the significant change in the book value during the reporting period
In RMB
Item Change Reason
Project funds collected in This is mainly due to the decrease in advance receipts due to the
-59,369,845.02
advance revenue recognized in the current period of the project contract
Real estate sales payment -34,686,753.10 This is mainly due to the decrease in advance receipts due to the
104
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
recognition of income from house delivery and occupation of
Nanchang Fangda Center project in this period
Total -94,056,598.12 ——
30. Employees’ wage payable
(1) Employees’ wage payable
In RMB
Item Opening balance Increase Decrease Closing balance
1. Short-term
60,855,743.99 153,476,290.98 187,488,204.44 26,843,830.53
remuneration
2. Retirement pension
program-defined 38,452.79 7,056,167.15 7,058,660.69 35,959.25
contribution plan
3. Dismiss compensation 321,692.29 321,692.29
Total 60,894,196.78 160,854,150.42 194,868,557.42 26,879,789.78
(2) Short-term remuneration
In RMB
Item Opening balance Increase Decrease Closing balance
1. Wage, bonus,
60,093,523.10 140,157,327.87 174,220,078.01 26,030,772.96
allowance and subsidies
2. Employee welfare 6,007,801.18 5,993,145.73 14,655.45
3. Social insurance 150.39 2,931,793.61 2,931,944.00
Including: medical
2,531,013.15 2,531,013.15
insurance
Labor injury
150.39 104,357.72 104,508.11
insurance
Breeding
296,422.74 296,422.74
insurance
4. Housing fund 41,608.00 3,840,165.69 3,837,787.69 43,986.00
5. Labor union budget
564,651.81 508,442.72 505,249.01 567,845.52
and staff education fund
6. Short-term paid leave 155,810.69 30,759.91 186,570.60
Total 60,855,743.99 153,476,290.98 187,488,204.44 26,843,830.53
105
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
(3) Defined contribution plan
In RMB
Item Opening balance Increase Decrease Closing balance
1. Basic pension 38,302.40 6,837,610.97 6,839,954.12 35,959.25
2. Unemployment
150.39 218,556.18 218,706.57
insurance
Total 38,452.79 7,056,167.15 7,058,660.69 35,959.25
31. Taxes payable
In RMB
Item Closing balance Opening balance
VAT 2,522,107.96 4,241,613.97
Enterprise income tax 26,820,215.06 14,495,521.72
Personal income tax 1,033,200.45 1,118,590.56
City maintenance and construction tax 624,407.20 814,163.97
Land using tax 279,217.10 242,187.59
Property tax 1,170,989.82 317,791.55
Education surtax 350,180.76 432,267.04
Local education surtax 95,625.85 169,248.62
Land VAT 3,277,497.08 337,655,257.61
Others 30,387.70 838,881.79
Total 36,203,828.98 360,325,524.42
32. Other payables
In RMB
Item Closing balance Opening balance
Dividend payable 6,000,000.00
Other payables 158,525,255.26 147,635,067.86
Total 158,525,255.26 153,635,067.86
(1) Dividend payable
In RMB
Item Closing balance Opening balance
Common share dividend 6,000,000.00
106
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Total 6,000,000.00
(2) Other payables
1) Other payables presented by nature
In RMB
Item Closing balance Opening balance
Performance and quality deposit 51,614,323.81 37,137,147.11
Deposit 20,500,389.65 17,623,656.22
Reserved expense 9,799,122.02 10,861,930.30
Others 76,611,419.78 82,012,334.23
Total 158,525,255.26 147,635,067.86
(2) Significant payables aging more than 1 year
In RMB
Item Closing balance Reason
Shenzhen Yikang Real Estate Co. Ltd. 25,062,852.92 Affiliated party payment
Total 25,062,852.92 --
33. Non-current liabilities due within 1 year
In RMB
Item Closing balance Opening balance
Long-term loans due within 1 year 118,173,496.59 103,359,833.57
Lease liabilities due within one year 1,323,121.32 2,106,913.21
Total 119,496,617.91 105,466,746.78
34. Other current liabilities
In RMB
Item Closing balance Opening balance
Unterminated notes receivable 19,329,820.88 82,447,039.97
Substituted money on VAT 17,383,794.35 25,241,385.72
Total 36,713,615.23 107,688,425.69
107
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
35. Long-term borrowings
(1) Classification of long-term borrowings
In RMB
Item Closing balance Opening balance
Loan by pledge 115,661,462.35 231,295,035.65
Guarantee, mortgage and pledge loan 1,368,500,000.00 868,116,426.70
Total 1,484,161,462.35 1,099,411,462.35
Notes to classification of long-term borrowings:
The pledge in the above guarantee, mortgage and pledge loan is based on the 100% equity of Fangda Real Estate Co., Ltd., a
subsidiary of the Company, and lease and the rent receivable pledge of Fangda Town rental property.
Other note, including interest rate range:
The interest rate period of long-term loan is 3%-7%.
36. Lease liabilities
In RMB
Item Closing balance Opening balance
House lease 24,199,811.38 4,421,707.15
Other leases 419,368.32 680,295.04
Total 24,619,179.70 5,102,002.19
37. Anticipated liabilities
In RMB
Item Closing balance Opening balance Reason
Penalty for delay in handling
Pending lawsuit 25,683,696.08 27,017,023.60
certificate of title
Product quality warranty 4,316,832.35 6,408,476.53 Product quality warranty
Total 30,000,528.43 33,425,500.13 --
Note: including related significant assumptions and estimates for anticipated liabilities
For details of the matters involved in the litigation of liquidated damages, see description of ③ of XIII. Commitments and
contingencies 2. Contingencies (1).
38. Deferred earning
In RMB
Item Opening balance Increase Decrease Closing balance Reason
108
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
See the following
Government subsidy 9,168,492.17 325,310.66 8,843,181.51
table
Total 9,168,492.17 325,310.66 8,843,181.51 --
Items involving government subsidies:
In RMB
Amount Other misc.
Related to
Opening Amount of included in gains Costs offset Closing
Liabilities Other change assets/earnin
balance new subsidy non-operatin recorded in in the period balance
g
g revenue this period
Railway
transport
screen door
controlling Assets-relate
58,749.53 9,452.16 49,297.37
system and d
information
transmission
technology
Major
investment
project prize
from Industry
and Trade Assets-relate
1,566,667.10 28,571.40 1,538,095.70
Development d
Division of
Dongguan
Finance
Bureau
Distributed
PV power
generation
project
subsidy Assets-relate
368,750.21 12,499.98 356,250.23
sponsored by d
Dongguan
Reform and
Development
Commission
Subsidized Assets-relate
173,553.23 1,862.82 171,690.41
land transfer d
Special
Assets-relate
subsidy for 800,000.00 800,000.00
d
industrial
109
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
transformatio
n, upgrading
and
development
Enterprise
informationiz
ation subsidy
project of
Shenzhen Assets-relate
420,000.00 24,000.00 396,000.00
Small and d
Medium
Enterprise
Service
Agency
National
Industry
Revitalizatio
Assets-relate
n and 5,685,712.10 153,864.30 5,531,847.80
d
Technology
Renovation
Project fund
Shenzhen
Science and
Technology
Innovation Earning-relat
95,060.00 95,060.00 0.00
Committee ed
Technology
Innovation
Subsidy
Total 9,168,492.17 325,310.66 8,843,181.51
39. Capital share
In RMB
Change (+,-)
Opening Closing
Issued new Transferred
balance Bonus shares Others Subtotal balance
shares from reserves
Total of capital 1,088,278,951. 1,073,874,227.
-14,404,724.00 -14,404,724.00
shares 00 00
Others:
① The decrease in share capital was due to the cancellation of B shares repurchased by the Company during the reporting period.
② As of June 30, 2021, there are 2,302,093 shares with limited sales conditions in the closing balance, all of which are held by
110
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
senior executives.
40. Capital reserve
In RMB
Item Opening balance Increase Decrease Closing balance
Capital premium (share
19,005,491.05 123,294,737.60 21,542,953.69 123,294,737.60
capital premium)
Other capital reserves 1,454,097.35 1,454,097.35
Total 20,459,588.40 123,294,737.60 21,542,953.69 122,211,372.31
Other note, including explanation about the reason of the change:
The increase of RMB123,294,737.60 yuan in capital reserve in the current period is due to the premium transfer of part of the equity
of Zhichuang Technology, a holding subsidiary of the Company; The capital reserve decreased by RMB21,542,953.69 yuan in the
current period due to the Company's acquisition of 100% equity of Yunzhu.
41. Shares in stock
In RMB
Item Opening balance Increase Decrease Closing balance
Shares in stock 42,748,530.12 42,748,530.12
Total 42,748,530.12 42,748,530.12
Other note, including explanation about the reason of the change:
At the second meeting of the ninth board of directors held on June 23, 2020, the Company considered and approved the proposal to
repurchase part of the Company's domestic listed foreign shares (B shares) in 2020. From July 23, 2020 to September 22, 2020,
14,404,724 shares were repurchased through centralized competitive bidding, the highest price was HK $3.47/share and the lowest
price was HK $3.16/share. The actual payment was HK $48,359,819.24 (including transaction costs), which was included in treasury
shares of RMB 42,748,530.12. On April 23, 2021, the Company completed the cancellation of the repurchase of 14,404,724 B shares,
reduced the share capital of 14,404,724 shares and offset the surplus reserve of RMB28,343,806.12.
42. Other miscellaneous income
In RMB
Amount occurred in the current period
Less: amount Less:
After-tax
written into amount
After-tax amount
other gains written Less:
Opening Amount amount attributed Closing
Item and into other Income
balance before attributed to balance
transferred gains and tax
income tax to the minority
into gain/loss transferred expenses
parent shareholde
in previous into
rs
terms gain/loss
111
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
in
previous
terms
1. Other misc. incomes that
-11,670,984. -229,678.5 -229,678.5 -11,900,
cannot be re-classified into gain
54 9 9 663.13
and loss
Fair value change of -11,670,984. -229,678.5 -229,678.5 -11,900,
investment in other equity tools 54 9 9 663.13
2. Other misc. incomes that will 13,749,152. 1,207,423. 358,625.7 228,217.8 13,977,3
643,973.21 -23,393.41
be re-classified into gain and loss 17 43 8 5 70.02
5,150,331.2 -318,749.8 -144,408.4 -785,690.8 4,364,64
Cash flow hedge reserve 643,973.21 -32,623.68
9 0 5 8 0.41
Translation difference of -485,963.6 -495,193.9 -652,926
-157,732.58 9,230.27
foreign exchange statement 9 6 .54
Investment real estate measured at 8,756,553.4 2,012,136. 503,034.2 1,509,102. 10,265,6
fair value 6 92 3 69 56.15
2,078,167.6 977,744.8 358,625.7 2,076,70
Other miscellaneous income 643,973.21 -1,460.74 -23,393.41
3 4 8 6.89
43. Surplus reserves
In RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
106,783,436.96 106,783,436.96
reserves
Total 106,783,436.96 106,783,436.96
Note, including explanation about the reason of the change:
If the cost of treasury shares written off in the current period is higher than the corresponding capital stock cost, the surplus reserve of
RMB28,343,806.12 yuan is offset at the time of write off; The acquisition of 100% equity of Yunzhu in the current period offset the
surplus reserve of RMB78,439,630.84 yuan.
44. Retained profit
In RMB
Item Current period Last period
Adjustment on retained profit of previous period 4,215,005,541.52 3,898,626,177.99
Total of retained profit at beginning of year
2,521,701.04 9,026,682.67
adjusted (+ for increase, - for decrease)
Retained profit adjusted at beginning of year 4,217,527,242.56 3,907,652,860.66
112
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Plus: Net profit attributable to owners of the
111,488,701.33 147,784,781.12
parent
Common share dividend payable 54,413,947.55
Adjustment to consolidation of entities under
24,107,813.58
common control
Closing retained profit 4,304,908,130.31 4,001,023,694.23
Details of retained profit adjusted at beginning of the period
1) Retrospective adjustment due to adopting of the Enterprise Accounting Standard and related regulations, included the retained
profit by RMB0.
2) Variation of accounting policies, influenced the retained profit by RMB0.00.
3) Correction of material accounting errors, influenced the retained profit by RMB0.00.
4) Change of consolidation range caused by merger of entities under common control, influenced the retained profit by RMB0.
5) Other adjustment influenced the retained profit by RMB0.
45. Operational revenue and costs
In RMB
Amount occurred in the current period Occurred in previous period
Item
Income Cost Income Cost
Main business 1,500,250,618.47 1,201,118,172.57 1,203,907,359.56 966,357,682.01
Other businesses 68,528,216.51 7,523,630.61 52,350,863.45 5,890,231.85
Total 1,568,778,834.98 1,208,641,803.18 1,256,258,223.01 972,247,913.86
Income information:
In RMB
Contract Segment Segment 2 - rail Segment 3 - real Segment 4 - new Segment 5 - other
Total
classification 1-curtain wall transit division estate segment energy segments
Type of product 1,097,171,007.07 267,687,038.55 188,235,871.36 8,323,350.81 7,361,567.20 1,568,778,834.98
Including:
Curtain wall
system and 1,097,171,007.07 1,097,171,007.07
materials
Subway screen
267,687,038.55 267,687,038.55
door and service
Real estate sales 188,235,871.36 188,235,871.36
PV power
generation 8,323,350.81 8,323,350.81
products
Others 7,361,567.20 7,361,567.20
113
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Total 1,097,171,007.07 267,687,038.55 188,235,871.36 8,323,350.81 7,361,567.20 1,568,778,834.98
Information related to performance obligations:
The two businesses of the Company's curtain wall system and materials, subway screen doors and services are mainly
the contracts corresponding to the engineering projects. Usually, a contract constitutes a single performance
obligation and is a performance obligation performed within a certain period of time. The Company recognizes
revenue according to the performance progress.
The sales of photovoltaic power generation products and real estate belong to contracts corresponding to commodity
sales. Usually, a contract constitutes a single performance obligation and is a performance obligation at a certain
point in time. Revenue is recognized when the customer obtains control of the relevant product.
Information related to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period, the amount of revenue corresponding to the performance obligations that have been signed but
have not been performed or completed is RMB5,996,487,536.97 yuan, of which RMB2,009,854,086.60 yuan is expected to be
recognized in the second half of 2021, RMB2,926,253,777.06 yuan is expected to be recognized in 2022, and RMB1,060,379,673.31
yuan is expected to be recognized in 2023 and later years.
Other note
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.3 – Listed Companies Engaged in Property Development.
Top-5 projects in terms of income received and recognized in the reporting period:
In RMB
No. Item Balanace
1 Fangda Town 35,672,181.90
2 Nanchang Fangda Center 63,168,965.12
46. Taxes and surcharges
In RMB
Item Amount occurred in the current period Occurred in previous period
City maintenance and construction tax 3,078,129.75 2,421,623.93
Education surtax 1,915,966.95 1,711,891.44
Property tax 2,864,691.90 2,227,891.98
Land using tax 751,644.13 684,461.08
Vehicle usage tax 51,320.40 9,780.00
Stamp tax 1,249,671.01 475,666.06
Land VAT 25,705,049.49
Others 237,220.25 58,508.26
Total 35,853,693.88 7,589,822.75
114
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
47. Sales expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 10,473,510.26 10,938,678.79
Sales agency fee 7,400,124.58 1,726,247.64
Entertainment expense 2,041,529.62 888,653.78
Travel expense 793,223.58 503,408.24
Advertisement and promotion fee 716,856.99 934,902.84
Rental 1,297,595.54 1,125,898.88
Office costs 398,521.93 262,176.26
Material consumption 367,137.80 490,460.47
Others 1,946,414.51 4,373,115.41
Total 25,434,914.81 21,243,542.31
48. Management expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 42,525,730.63 39,047,937.75
Maintenance costs 3,088,854.95 2,003,855.95
Agencies 4,747,575.30 5,871,925.65
Depreciation and amortization 4,238,728.47 4,118,354.72
Office expense 3,742,123.03 4,388,983.49
Entertainment expense 2,159,401.56 1,549,406.05
Rental 1,171,537.38 1,166,665.68
Lawsuit 2,650,332.80 274,438.54
Travel expense 870,897.82 675,099.35
Property management fee 728,524.88 414,235.37
Water and electricity 385,129.66 104,054.76
Material consumption 719,301.89 161,161.21
Others 2,474,315.56 3,420,857.36
Total 69,502,453.93 63,196,975.88
49. R&D cost
In RMB
115
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Item Amount occurred in the current period Occurred in previous period
Labor costs 47,607,487.83 29,168,628.85
Material costs 23,898,889.12 17,682,878.47
Agencies 3,027,319.72 2,526,263.58
Rental 992,048.08 1,105,564.58
Depreciation costs 788,799.38 737,427.60
Amortization of intangible assets 507,608.85 578,107.24
Travel expense 176,681.32 34,950.20
Others 1,646,760.56 662,340.73
Total 78,645,594.86 52,496,161.25
50. Financial expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Interest expense 46,707,567.90 46,974,588.65
Less: interest capitalization 3,070,467.85 3,809,610.82
Less: discount government subsidies
Less: Interest income 6,976,161.44 6,956,602.08
Acceptant discount 5,472,503.74 6,049,511.72
Exchange gain/loss 1,703,136.52 -311,399.26
Commission charges and others 3,000,733.43 2,935,649.45
Total 46,837,312.30 44,882,137.66
51. Other gains
In RMB
Source Amount occurred in the current period Occurred in previous period
Government subsidies related to deferred
206,250.66 158,379.99
income (related to assets)
Government subsidies related to deferred
95,060.00 34,980.00
income (related to income)
Government subsidies directly included in
current profits and losses (related to 5,791,459.18 2,893,461.97
income)
Other items related to daily activities and
514,288.22 3,127,290.81
included in other income
116
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Total 6,607,058.06 6,214,112.77
52. Investment income
In RMB
Item Amount occurred in the current period Occurred in previous period
Gains from long-term equity investment
-452,893.65 -375,202.09
measured by equity
Investment income from disposal of trading
2,953,049.83 2,297,898.75
financial assets and derivative financial assets
Financial assets derecognised as a result of
-3,032,899.72 -2,255,794.10
amortized cost
Others -309,081.13
Total -532,743.54 -642,178.57
53. Income from fair value fluctuation
In RMB
Source of income from fluctuation of fair
Amount occurred in the current period Occurred in previous period
value
Transactional financial assets 41,277.62
Other non-current financial assets 172,829.74 9,107.28
Total 172,829.74 50,384.90
54. Credit impairment loss
In RMB
Item Amount occurred in the current period Occurred in previous period
Bad debt loss of other receivables 1,139,984.05 -712,877.78
Bad debt loss of account receivable 18,713,432.01 55,383,671.10
Total 19,853,416.06 54,670,793.32
55. Assets impairment loss
In RMB
Item Amount occurred in the current period Occurred in previous period
Contract asset impairment loss 3,466,913.89 20,219,822.04
Total 3,466,913.89 20,219,822.04
117
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
56. Assets disposal gains
In RMB
Source Amount occurred in the current period Occurred in previous period
Gain and loss from disposal of fixed assets
-2,027,304.03 -1,981.72
("-" for loss)
57. Non-business income
In RMB
Amount occurred in the current Amount accounted into the
Item Occurred in previous period
period current accidental gain/loss
Penalty income 195,216.06 172,413.23 195,216.06
Payable account not able to be
539,817.35 539,817.35
paid
Compensation received 36,000.00 4,740.00 36,000.00
Others 430,073.05 103,468.04 430,073.05
Total 1,201,106.46 280,621.27 1,201,106.46
58. Non-business expenses
In RMB
Amount occurred in the current Amount accounted into the
Item Occurred in previous period
period current accidental gain/loss
Donation 3,127,302.00 5,113,500.00 3,127,302.00
Loss from retirement os
101,810.29 123,770.81 101,810.29
damaged non-current assets
Penalty and overdue fine 54,643.82 3,731.07 54,643.82
Others 196,618.40 34,866.45 196,618.40
Total 3,480,374.51 5,275,868.33 3,480,374.51
59. Income tax expenses
(1) Details about income tax expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Income tax expenses in this period 9,913,372.73 16,599,518.26
Deferred income tax expenses 4,023,120.93 5,659,613.66
118
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Total 13,936,493.66 22,259,131.92
(2) Adjustment process of accounting profit and income tax expense
In RMB
Item Amount occurred in the current period
Total profit 129,123,964.15
Income tax expenses calculated based on the legal (or applicable)
32,280,991.04
tax rates
Impacts of different tax rates applicable for some subsidiaries -10,512,008.61
Impacts of income tax before adjustment 33,438.03
Impacts of non-deductible cost, expense and loss 1,291,544.82
Impacts of using deductible loss of unrecognized deferred
-2,863.58
income tax assets
Deductible temporary difference and deductible loss of
130,493.94
unrecognized deferred income tax assets
Profit and loss of associates and joint ventures calculated using
113,223.41
the equity method
Taxation impact of R&D expense and (presented with “-”) -9,398,325.39
Income tax expenses 13,936,493.66
60. Other miscellaneous income
See Note VII 42.
61. Notes to the cash flow statement
(1) Other cash inflow related to operation
In RMB
Item Amount occurred in the current period Occurred in previous period
Interest income 3,844,284.17 3,910,905.13
Subsidy income 2,962,771.94 2,675,134.41
Retrieving of bidding deposits 29,885,356.39 194,526,618.44
Other operating accounts 55,055,405.87 12,873,603.24
Total 91,747,818.37 213,986,261.22
119
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
(2) Other cash paid related to operation
In RMB
Item Amount occurred in the current period Occurred in previous period
Management and R&D expenses 14,947,949.40 16,820,091.22
Sales expense 6,908,552.06 2,200,543.16
Bidding deposit paid 15,899,280.00 50,058,802.62
Net draft deposit net paid 144,928,637.13 129,561,924.62
Lawsuit freezing funds 61,699,121.88
Other trades 9,718,831.22 17,225,493.04
Total 192,403,249.81 277,565,976.54
(3) Other cash received related to investment activities
In RMB
Item Amount occurred in the current period Occurred in previous period
Other investment-related cash received 250.00
Total 250.00
(4) Other cash paid related to investment activities
In RMB
Item Amount occurred in the current period Occurred in previous period
Other cash paid for investment 1,323,355.15
Total 1,323,355.15
(5) Other cash paid related to financing activities
In RMB
Item Amount occurred in the current period Occurred in previous period
Bill of exchange discounted loan margin 228,210,000.00 181,300,000.00
B share repurchase expenses 99,998,965.99
Loan pledged by certificate of deposit 300,000,000.00
Repayment of principal and interest of
1,150,479.34
lease liabilities
Total 529,360,479.34 281,298,965.99
120
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
62. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB
Supplementary information Amount of the Current Term Amount of the Previous Term
1. Net profit adjusted to cash flow related to
-- --
business operations:
Net profit 115,187,470.49 147,858,243.06
Plus: Asset impairment provision -23,320,329.95 -74,890,615.36
Fixed asset depreciation, gas and
petrol depreciation, production goods 12,694,795.70 11,802,786.53
depreciation
Depreciation of right to use assets 2,441,097.81
Amortization of intangible assets 2,110,624.27 2,117,631.57
Amortization of long-term
1,095,936.19 609,394.73
amortizable expenses
Loss from disposal of fixed assets,
intangible assets, and other long-term assets 2,027,304.03 1,981.72
(“-“ for gains)
Loss from fixed asset discard (“-
101,810.29 123,770.81
“ for gains)
Loss from fair value fluctuation “-
-172,829.74 -50,384.90
“ for gains)
Financial expenses ““ for gains) 50,128,451.89 49,214,489.55
Investment losses (“-“ for gains) -2,500,156.18 -1,613,615.53
Decrease of deferred income tax
-108,813.53 10,311,829.50
asset (“-“ for increase)
Increase of deferred income tax
1,701,067.08 -4,365,349.25
asset (“-“ for increase)
Decrease of inventory (“-“ for
63,137,528.73 -46,192,352.00
increase)
Decrease of operational receivable
25,896,769.11 -141,439,156.06
items (“-“ for increase)
Increase of operational receivable
-851,232,377.90 -55,880,612.56
items (“-“ for decrease)
Others 99,887,106.71 -36,535,306.13
Cash flow generated by business -500,924,545.00 -138,927,264.32
121
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
operations, net
2. Major investment and financing activities
-- --
with no cash involved:
Debt transferred to assets
Convertible corporate bonds due within
one year
Fixed assets under finance leases
3. Net change in cash and cash equivalents: -- --
Balance of cash at period end 587,299,086.12 613,753,872.41
Less: Initial balance of cash 1,028,386,529.73 730,933,482.19
Add: Ending balance of cash
equivalents
Less: Ending balance of cash
equivalents
Net increase in cash and cash
-441,087,443.61 -117,179,609.78
equivalents
(2) Net cash paid to subsidiaries acquired in the current period
In RMB
Amount
Cash or cash equivalents paid by the business combination in the
125,388,100.00
current period
Including: Net cash paid for acquiring subsidiaries 125,388,100.00
(3) Composition of cash and cash equivalents
In RMB
Item Closing balance Opening balance
I. Cash 587,299,086.12 1,028,386,529.73
Including: Cash in stock 9,176.73 482.09
Bank savings can be used at any time 554,736,008.92 1,013,118,829.42
Other monetary capital can be used at
32,553,900.47 15,267,218.22
any time
III. Balance of cash and cash equivalents at
587,299,086.12 1,028,386,529.73
end of term
Including: restricted cash and cash
658,832,074.53 435,587,632.71
equivalent used by parent company or
122
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
subsidiaries in the Group
63. Assets with restricted ownership or use rights
In RMB
Item Closing book value Reason
Margin, pledge and judicial frozen deposit,
Monetary capital 658,832,074.53
etc
Inventory 87,429,489.76 Credit Mortgage, Mortgage Loan
Fixed assets 113,877,697.76 Credit Mortgage, Mortgage Loan
Intangible assets 18,869,282.56 Loan by pledge
Account receivable 42,595,672.31 Loan by pledge
Investment real estate 4,161,289,402.27 Loan by pledge
100% stake in Fangda Property
200,000,000.00 Loan by pledge
Development held by the Company
Total 5,282,893,619.19 --
64. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Closing foreign currency
Item Exchange rate Closing RMB balance
balance
Monetary capital -- -- 75,185,722.28
Including: USD 4,628,223.20 6.460100 29,898,784.69
Euro 0.83 7.686200 6.38
HK Dollar 34,961,409.39 0.832080 29,090,689.53
INR 17,058,783.99 0.086946 1,483,193.03
Vietnamese currency 302,393,210.00 0.000281 84,851.33
SGD 2,000.30 4.811898 9,625.24
AUD 3,012,399.90 4.852799 14,618,572.08
Account receivable -- -- 11,671,200.48
Including: USD 697,734.93 6.460100 4,507,437.42
AUD 1,476,212.52 4.852799 7,163,763.06
Contract assets 20,705,194.94
Including: USD 2,728,310.81 6.460100 17,625,160.66
123
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
INR 35,424,680.60 0.086946 3,080,034.27
Contract liabilities 42,853,498.22
Including: USD 2,581,815.62 6.460100 16,678,787.09
HK Dollar 31,456,964.64 0.832080 26,174,711.14
Other receivables 1,445,917.29
Including: USD 174,206.31 6.460100 1,125,390.18
HK Dollar 63,000.00 0.832080 52,421.04
INR 2,519,593.00 0.086946 219,068.53
AUD 10,105.00 4.852799 49,037.54
Account payable 4,574,128.13
Including: USD 708,058.41 6.460100 4,574,128.13
Other payables 390,244.49
Including: USD 57,548.51 6.460100 371,769.13
HK Dollar 100.00 0.832080 83.21
Vietnamese currency 65,545,950.00 0.000281 18,392.15
(2) The note of overseas operating entities should include the main operation places, book keeping
currencies and selection basis. Where the book keeping currency is changed, the reason should also be
explained.
□ Applicable √ Inapplicable
65. Hedging
Hedging items and related tools, qualitative and quantitative information about hedging risks:
Type Hedged item Hedging tools Hedged risk
Forward
Aluminum The price of raw materials has risen, leading
transaction of
futures to an increase in expected transaction
aluminum sheet
contract; procurement costs;
purchase;
Cash flow hedging
Forward
Forward foreign
foreign The depreciation of foreign currency leads to
exchange
exchange the decrease of actual collection
transaction
contract
124
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
66. Government subsidy
(1) Government subsidy profiles
In RMB
Amount accounted into the
Type Amount Item
current gain/loss
Enterprise informationization
subsidy project of Shenzhen
4,200,000.00 Deferred earning 24,000.00
Small and Medium Enterprise
Service Agency
VAT rebated into revenue 2,975,710.51 Other gains 2,975,710.51
R&D subsidy from Shenzhen
Science and Technology 1,023,500.00 Other gains 1,023,500.00
Innovation Commission
2020 industrial added value
664,600.00 Other gains 664,600.00
award project
Support for steady industrial
637,000.00 Other gains 637,000.00
growth in Shenzhen
VAT plus deduction 251,399.27 Other gains 251,399.27
National Industry Revitalization
and Technology Renovation 153,864.30 Deferred earning 153,864.30
Project fund
Technology research and
development award of Finance
Bureau of Management 123,700.00 Other gains 123,700.00
Committee of Nanchang
High-tech Development Zone
Others 812,033.51 Other gains/deferred gains 753,283.98
Total 10,841,807.59 6,607,058.06
(2) Government subsidy refund
□ Applicable √ Inapplicable
125
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
VIII. Change to Consolidation Scope
1. Consolidation of entities under common control
(1) Merger of companies under the common control during the report period
In RMB
Net profit of
Income of the
Basis for the Net profit of
consolidated Income of the
Proportion of judgment of consolidated the
Determinatio party from consolidated
equity merger of party from consolidated
Consolidated Consolidatio n basis of the beginning party during
obtained in companies the beginning party during
party n date consolidation of the current the
business under the of the current the
date period to the consolidation
consolidation common period to the consolidation
consolidation period
control consolidation period
date
date
The ultimate
controlling
party of the
Company and Obtaining the
Shenzhen
Yunzhu actual control
Yunzhu Thursday,
100.00% before and right of the 3,390,588.25 17,512.89 4,650,158.59 1,049,885.06
Industrial April 8, 2021
after the acquired
Co., Ltd.
consolidation party
is Mr.
XiongJianmi
ng
(2) Consolidation costs
In RMB
Combination costs
--Cash 125,388,100.00
(3) Book value of assets and liabilities of the consolidated party on the consolidation date
In RMB
Item Consolidation date End of last period
Assets: 15,175,632.19 24,603,069.69
Monetary capital 2,128,872.25 4,134,142.34
Receivables 995,631.44 757,006.79
126
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Inventory 1,276,334.40
Fixed assets 52,890.36 55,650.37
Intangible assets 7,934.87 8,785.04
Transactional financial assets 3,155,680.40 10,331,880.99
Contract assets 5,748,854.44 8,559,360.21
Prepayment 333,438.89 259,671.72
Others 1,475,995.14 496,572.23
Liabilities: 2,356,229.26 11,801,179.65
Borrowing 37,186.48 0.00
Payable 2,319,042.78 11,801,179.65
Net assets 12,819,402.93 12,801,890.04
Less: minor shareholders’ equity 0.00 1,280,189.00
Acquired net assets 12,819,402.93 11,521,701.04
Contingent liabilities of the consolidated party assumed in the business consolidation:
None
Others:
None
2. Disposal of subsidiaries
Single disposal of a subsidiary that may lead to loss of control
□ Yes √ No
Disposal of a subsidiary in multiple steps that lead to loss of control in the report period
□ Yes √ No
3. Change to the consolidation scope for other reasons
Change in the consolidation scope due to other reasons (such as new subsidiaries and liquidation of subsidiaries) and the situations:
None
IX. Equity in Other Entities
1. Interests in subsidiaries
(1) Group Composition
Registered Shareholding percentage
Company Place of business Business Obtaining method
address Direct Indirect
FangdaJianke Shenzhen Shenzhen Designing, 98.39% 1.61% Incorporation
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
manufacturing,
and installation of
curtain walls
Production,
processing and
FangdaZhichuang Shenzhen Shenzhen installation of 83.10% Incorporation
subway screen
doors
Prodution and
sales of new-type
materialsm
Fangda New
Nanchang Nanchang composite 75.00% 25.00% Incorporation
Material
materials and
production of
curtain walls
Real estate
Fangda Property Shenzhen Shenzhen development and 99.00% 1.00% Incorporation
operation
Design and
Fangda New
Shenzhen Shenzhen construction of 99.00% 1.00% Incorporation
Energy
PV power plants
Trusted
processing of
Chengdu Fangda Chengdu Chengdu 100.00% Incorporation
building curtain
wall materials
Shihui
Virgin Islands Virgin Islands Investment 100.00% Incorporation
International
Installation and
Dongguan New
Dongguan Dongguan sales of building 100.00% Incorporation
Material
curtain walls
Fangda Property Property
Shenzhen Shenzhen 100.00% Incorporation
Management management
Real estate
Jiangxi Property
Nanchang Nanchang development and 100.00% Incorporation
Development
operation
Design and
Luxin New
Pingxiang Pingxiang construction of 100.00% Incorporation
Energy
PV power plants
Design and
Xinjian New
Nanchang Nanchang construction of 100.00% Incorporation
Energy
PV power plants
128
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Design and
Dongguan New
Dongguan Dongguan construction of 100.00% Incorporation
Energy
PV power plants
Kechuangyuan Software
Shenzhen Shenzhen 83.10% Incorporation
Software development
FangdaZhichuang
Science and
Metro screen
Technology Hong Kong Hong Kong 83.10% Incorporation
door
(Hong Kong) Co.,
Ltd.
Hongjun
Investment Shenzhen Shenzhen Investment 98.00% 2.00% Incorporation
Company
Designing,
Fangda Australia manufacturing,
Australia Australia 100.00% Incorporation
Co., Ltd. and installation of
curtain walls
Design,
development and
Fangda Cloud
Shenzhen Shenzhen sales of cloud rail 100.00% Incorporation
Rail
transport
equipment
Building
Chengda Curtain decoration and
Chengdu Chengdu 100.00% Incorporation
Wall Company other construction
industry
Designing,
Fangda Southeast manufacturing,
Vietnam Vietnam 100.00% Incorporation
Asia and installation of
curtain walls
Intelligent
technology, new
Shanghai Zhijian Shanghai Shanghai energy, 30.00% 70.00% Incorporation
automated
technology
Construction
technology,
intelligent
Shanghai Jianzhi Shanghai Shanghai 100.00% Incorporation
technology,
automation
technology,
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
design,
production and
installation of
building curtain
walls
ZhongrongLitai Shenzhen Shenzhen Business service 55.00% Purchase
Fangda
Project
Investment
investment and
Partnership Shenzhen Shenzhen 99.00% 0.52% Incorporation
investment
(Limited
consultancy
Partnership)
Project
investment and
Lifu Investment Shenzhen Shenzhen 52.00% Incorporation
investment
consultancy
Project
investment and
Xunfu Investment Shenzhen Shenzhen 100.00% Incorporation
investment
consultancy
Design, sale and
Jianke Hong installation of
Hong Kong Hong Kong 100.00% Incorporation
Kong building curtain
wall
Inspection,
technical service
and consultation
Yunzhu Shenzhen Shenzhen of building safety 100.00% Purchase
and building
energy saving
system
Note to the difference between shareholdings in subsidiaries and percentage of votes:
None
Basis for holding half or less votes but controlling invested entities, and holding half or more votes but not controlling invested
entities:
None
Basis for control of structural entities incorporated in the consolidation scope:
None
Basis for recognizing a company as an agent or consigner:
None
Others:
None
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
(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
ZhongrongLitai 45.00% 5,020.74 48,407,976.32
FangdaZhichuang 16.90% 3,689,439.35 3,989,716.00 46,308,033.52
Note to the difference between shareholdings of minority shareholders in subsidiaries and percentage of votes:
None
Others:
None
(3) Financial highlights of major non wholly owned subsidiaries
In RMB
Closing balance Opening balance
Compan Non-curr Non-curr Non-curr Non-curr
Current Total of Current Total Current Total of Current Total
y ent ent ent ent
asset assets liabilities liabilities asset assets liabilities liabilities
assets liabilities assets liabilities
Zhongro 206,568, 186,691. 206,755, 99,011,7 170,604. 99,182,3 205,837, 30,024.8 205,867, 98,305,2 98,305,2
ngLitai 978.96 75 670.71 85.19 81 90.00 361.25 8 386.13 62.61 62.61
FangdaZ 545,615, 82,132,2 627,747, 345,785, 7,950,45 353,735, 757,453, 62,283,6 819,737, 519,869, 6,562,28 526,432,
hichuang 396.10 91.49 687.59 202.83 2.10 654.93 607.34 69.54 276.88 993.38 6.06 279.44
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
ZhongrongLi
201,032.08 11,157.19 11,157.19 16,306.16 229,334.85 -70,059.04 -70,059.04 -11,053.19
tai
FangdaZhich 267,687,038. 48,286,952.2 47,707,035.2 -122,774,779.
uang 55 7 2 41
2. Change in the ownership share of the subsidiary and control of the transaction of the subsidiary
(1) Description of changes in owner's equity shares of subsidiaries
In order to strengthen the strategic layout of the Company's rail transit PSD system industry and further optimize the equity structure
of the holding subsidiary Zhichuang Technology, according to the Company's strategic plan, the Company transferred 10.9375% of
131
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
the equity of Zhichuang Technology, with a transfer amount of RMB175 million yuan. The above equity transfer related procedures
have been completed in the reporting period. For details of the disclosure of relevant matters, please refer to the Announcement on
Transfer of Partial Equity of Holding Subsidiaries released on cninfo.com on May 17, 2021.
(2) Impact of transaction on minority shareholders' equity and owner's equity attributable to parent
company
In RMB
Item Amount
Purchase cost/disposal consideration
--Cash 175,000,000.00
Total purchase cost/disposal consideration 175,000,000.00
Less: share of net assets of subsidiaries calculated according to
29,154,008.06
the proportion of equity acquired / disposed
Difference 145,845,991.94
Including: adjustment of capital reserve 145,845,991.94
Other note
None
3. Interests in joint ventures or associates
(1) Financial summary of insignificant joint ventures and associates
In RMB
Closing balance/amount occurred in this Opening balance/amount occurred in
period previous period
Associate: -- --
Total book value of investment 55,449,484.30 55,902,377.95
Total shareholding -- --
Net profit -452,893.65 -375,202.09
--Total of misc. incomes -452,893.65 -375,202.09
Other note
None
X. Risks of Financial Tools
The risks associated with the financial instruments of the Company arise from the various financial assets
and liabilities recognized by the Company in the course of its operations, including credit risks, liquidity
risks and market risks.
The management objectives and policies of various risks related to financial instruments are governed by
132
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
the management of the Company. The operating management is responsible for daily risk management through
functional departments (for example, the Company's credit management department reviews the Company's credit
sales on a case-by-case basis). The internal audit department of the Company conducts daily supervision of the
implementation of the Company's risk management policies and procedures, and reports relevant findings to the
Company's audit committee in a timely manner.
The overall goal of the Company's risk management is to formulate risk management policies that minimize
the risks associated with various financial instruments without excessively affecting the Company's
competitiveness and resilience.
1. Credit risk
Credit risk is caused by the failure of one party of a financial instrument in performing its obligations,
causing the risk of financial loss for the other party. The credit risk of the Company mainly comes from monetary
capital, notes receivable, accounts receivable, other receivables, receivables financing, contract assets, etc.
The credit risk of these financial assets comes from the default of the counterparties, and the maximum risk
exposure is equal to the book amount of these instruments.
The Company's money and funds are mainly deposited in the commercial banks and other financial institutions.
The Company believes that these commercial banks have higher reputation and asset status and have lower credit
risk.
For notes receivable, accounts receivable, other receivables, receivables financing and contract assets,
the Company sets relevant policies to control credit risk exposure. The Group set the credit line and term for
debtors according to their financial status, external rating, and possibility of getting third-party guarantee,
credit record and other factors. The Group regularly monitors debtors’ credit record. For those with poor credit
record, the Group will send written payment reminders, shorten or cancel credit term to lower the general credit
risk.
(1) Significant increases in credit risk
The credit risk of the financial instrument has not increased significantly since the initial confirmation.
In determining whether the credit risk has increased significantly since the initial recognition, the Company
considers reasonable and evidenced information, including forward-looking information, that can be obtained
without unnecessary additional costs or effort. The Company determines the relative risk of default risk of the
financial instrument by comparing the risk of default of the financial instrument on the balance sheet date with
the risk of default on the initial recognition date to assess the credit risk of the financial instrument from
initial recognition.
When one or more of the following quantitative and qualitative criteria are triggered, the Company believes
that the credit risk of financial instruments has increased significantly: the quantitative criteria are mainly
the probability of default in the remaining life of the reporting date increased by more than a certain proportion
compared with the initial recognition; the qualitative criteria are the major adverse changes in the operation
or financial situation of the major debtors, the early warning of customer list, etc.
(2) Definition of assets where credit impairment has occurred
In order to determine whether or not credit impairment occurs, the standard adopted by our company is consistent with the
credit risk management target for related financial instruments, and quantitative and qualitative indicators are considered.
Major financial difficulties have occurred to the issuer or the debtor; Breach of contract by the debtor,
133
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
such as payment of interest or default or overdue of principal; (B) The concession that the debtor would not
make under any other circumstances for economic or contractual considerations relating to the financial
difficulties of the debtor; The debtor is likely to be bankrupt or undertake other financial restructuring; The
financial difficulties of the issuer or debtor lead to the disappearance of the active market for the financial
asset; To purchase or generate a financial asset at a substantial discount, which reflects the fact that a credit
loss has occurred.
Credit impairment in financial assets may be caused by a combination of multiple events, not necessarily
by events that can be identified separately.
(3) Expected credit loss measurement
Depending on whether there is a significant increase in credit risk and whether a credit impairment has occurred, the Company
prepares different assets for a 12-month or full expected credit loss. The key parameters of expected credit loss measurement
include default probability, default loss rate and default risk exposure. Taking into account the quantitative analysis
and forward-looking information of historical statistics (such as counterparty ratings, guaranty methods, collateral categories,
repayment methods, etc.), the Company establishes the default probability, default loss rate and default risk exposure model.
Definition:
The probability of default refers to the possibility that the debtor will not be able to fulfil its obligation to pay in the next 12
months or throughout the remaining period.
Breach Loss Rate means the extent of loss expected by the Company for breach risk exposure. Depending on
the type of counterparty, the manner and priority of recourse, and the different collateral, the default loss
rate is also different. The default loss rate is the percentage of the risk exposure loss at the time of the default, calculated on the
basis of the next 12 months or the entire lifetime.
Exposure to default is the amount payable to the Company at the time of default in the next 12 months or throughout the
remaining life. Prospective information credit risks significantly increased and expected credit losses were
calculated. Through the analysis of historical data, the Company has identified the key economic indexes that
affect the credit risk of each business type and the expected credit loss.
The largest credit risk facing the Group is the book value of each financial asset on the balance sheet.
The Group makes no guarantee that may cause the Group credit risks.
Among the Group’ receivables, accounts receivable from top 5 customers account for 31.97% of the total accounts receivable
(beginning of the period: 28.36%); among other receivables, other receivables from top 5 customers account for 68.32% of the total
other receivables (beginning of the period: 69.65%).
2. Liquidity risk
Liquidity risk is the risk of capital shortage when the Group needs to pay cash or settled with other financial
assets. The Company is responsible for the cash management of its subsidiaries, including short-term investments
in cash surpluses and loans to meet projected cash requirements. The Company's policy is to regularly monitor
short and long-term liquidity requirements and compliance with borrowing agreements to ensure adequate cash
reserves and readily available securities.
As of June 30, 2021, the maturity of the Company's financial liabilities is as follows:
Contract amount: RMB
Item June 30, 2021
134
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Less than 1 year Within 1-3 Over 3 years Total
years
Short-term loans 117,463.12 117,463.12
Notes payable 68,429.86 68,429.86
Account payable 108,683.62 2,983.24 1,129.24 112,796.10
Employees' wage payable 2,687.98 2,687.98
Other payables 10,024.62 1,592.44 4,235.47 15,852.53
Non-current liabilities due in 1 11,949.66 11,949.66
year
Other current liabilities 3,671.36 3,671.36
Long-term loans 29,116.15 119,300.00 148,416.15
Total liabilities 322,910.22 33,691.83 124,664.71 481,266.76
(Continued)
Contract amount: RMB
December 31, 2020
Item Less than 1 year Within 1-3 Over 3 years Total
years
Short-term loans 104,825.03 104,825.03
Notes payable 86,622.45 86,622.45
Account payable 124,909.38 3,271.34 104.08 128,284.80
Employees' wage payable 6,089.42 6,089.42
Other payables 9,741.88 3,965.54 1,656.09 15,363.51
Non-current liabilities due in 1 10,335.98 10,335.98
year
Other current liabilities 10,768.84 10,768.84
Long-term loans 24,941.15 85,000.00 109,941.15
Total liabilities 353,292.98 32,178.03 86,760.17 472,231.18
3. Market risks and measures
(1) Credit risks
The exchange rate risk of the Company mainly comes from the assets and liabilities of the Company and its
subsidiaries in foreign currency not denominated in its functional currency. Except for the use of Hong Kong
dollars, United States dollars, Australian dollars, Vietnamese dong, euro, Indian rupees or Singapore currencies
by its subsidiaries established in and outside the Hong Kong Special Administrative Region, other major businesses
135
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
of the Company shall be denominated in Renminbi.
As of June 30, 2021, the Company's ending foreign currency financial assets and foreign currency financial liabilities are listed
in Note 7, 66 foreign currency monetary item description.
The Company pays close attention to the impact of exchange rate changes on the Company's exchange rate
risk. The Company continuously monitors the scale of foreign currency transactions and foreign currency assets
and liabilities to minimize foreign exchange risks. To this end, the Company may avoid foreign exchange risks
by signing forward foreign exchange contracts or currency swap contracts.
(2) Interest risk
The Group's interest rate risk mainly arises from long-term interest-bearing debts such as long-term bank
loans. Financial liabilities with floating interest rate cause cash flow interest rate risk for the Group.
Financial liabilities with fixed interest rate cause fair value interest rate risk for the Group. The Group decides
the proportion between fixed interest rate and floating interest rate according to the market environment and
regularly reviews and monitors the combination of fixed and floating interest rate instruments.
The Group Finance Department of the Company continuously monitors the Group interest rate level. The rising
interest rate will increase the cost of the new interest-bearing debt and the interest expenditure on
interest-bearing debt which has not yet been paid by the Company at the floating rate, and will have a significant
adverse effect on the Company's financial performance. Management will make adjustments in time according to
the latest market conditions.
As of June 30, 2021, the current floating rate loan is RMB 2.077 billion. If the loan interest rate calculated by floating rate
increases or decreases by 50 basis points, the net profit of the Company will decrease or increase by RMB 7.7888 million (December
31, 2020: RMB 7.3875 million) while other risk variables remain unchanged.
XI. Fair Value
1. Closing fair value of assets and liabilities measured at fair value
In RMB
Closing fair value
Item
First level fair value Second level fair value Third level fair value Total
1. Continuous fair value
-- -- -- --
measurement
Derivative financial assets 5,096,490.27 5,096,490.27
Investment in other equity
17,398,629.00 17,398,629.00
tools
Leased building 5,635,833,581.39 5,635,833,581.39
Financial assets measured
at fair value with changes
132,493,708.09 132,493,708.09
included in current profits
and losses -- investment in
136
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
financial products
Receivable financing 23,798,104.10 23,798,104.10
Other non-current
5,198,015.90 5,198,015.90
financial assets
Total assets measured at
5,096,490.27 5,635,833,581.39 178,888,457.09 5,819,818,528.75
fair value continuously
2. Discontinuous fair
-- -- -- --
value measurement
2. Recognition basis of market value of continuous and discontinuous items measured at first level fair
value
The Group determines the fair value using quotation in an active market for financial instruments traded in an
active market;
3. Valuation technique and qualitative and quantitative information for key parameters of continuous and
discontinuous second level fair value items
For investment real estate, the Company adopts valuation technology to determine its fair value. The valuation
techniques adopted are mainly the market comparison method and the income method, and the rent and resale model.
The input value of valuation technology mainly includes comparable market unit price, market rent, vacancy rate,
growth rate, rate of return, etc.
4. Valuation technique and qualitative and quantitative information for key parameters of continuous and
discontinuous third level fair value items
If there is no active market, the Company uses evaluation techniques to determine the fair value. The valuation
models are mainly cash flow discount model and market comparable company model. The input value of valuation
technology mainly includes risk-free interest rate, benchmark interest rate, exchange rate, credit point
difference, liquidity premium, lack of liquidity discount, etc.
5. Switch between different levels, switch reason and switching time policy
The Company takes the occurrence date of the events leading to the transition between levels as the time point
to confirm the transition between levels. In the period, there is no switch in the financial assets measured
at fair value between the first and second level or transfer in or out of the third level.
6. Fair value of financial assets and liabilities not measured at fair value
Financial assets and liabilities measured at amortized cost include: monetary capital, bills receivable, accounts
receivable, other receivables, short-term borrowings, notes payable, employee compensation payable, accounts
payables, other payables, and long-term payables.
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
XII. Related Parties and Transactions
1. Parent of the Company
Share of the parent Voting power of the
Parent Registered address Business Registered capital
co. in the Company parent company
Shenzhen Banglin
Technologies
Shenzhen Industrial investment RMB30 million 11.11% 11.11%
Development Co.,
Ltd.
Shengjiu Investment
Hong Kong Industrial investment HKD10,000 9.89% 9.89%
Ltd.
Particulars about the parent of the Company
①All of the investors of Shenzhen Banglin Technology Development Co., Ltd., the holding shareholder of the Company, are
natural persons. Among them, Chairman XiongJianming is holding 85％ shares, and Mr. Xiong Xi – son of Mr. XiongJianming, is
holding 15% of the shares.
② Among the top 10 shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu Investment Co., Ltd.
are acting in concert.
The final controller of the Company is XiongJianming.
2. Subsidiaries of the Company
For details of subsidiaries of the enterprise, please refer to Note IX, rights and interests in other entities.
3. Joint ventures and associates
See Note for details of significant joint ventures and associates of the Company.
Information about other joint ventures or associates with related transactions in this period or with balance generated by related
transactions in previous period:
Joint venture or associate Relationship with the Company
Shenzhen Ganshang Joint Investment Co., Ltd. (Shenzhen
Associate
Ganshang)
4. Other associates
Other related parties Relationship with the Company
Jiangxi Business Innovative Property Joint Stock (Jiangxi
Associate
Business Inovation)
Shenzhen Qijian Technology Co., Ltd. (Qijian Technology) Common actual controller
Shenzhen Mingjiu Investment Co., Ltd Common actual controller
138
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
Shenzhen Fangda Property Development Co., Ltd. (hereinafter
Controlled subsidiaries
Fangda Property Development)
Shenyang Fangda Semi-conductor Lighting Co., Ltd. (hereinafter
Subsidiary in liquidation
Shenyang Fangda)
Shenzhen Woke Semi-conductor Lighting Co., Ltd. (hereinafter
Subsidiary in liquidation
Shenzhen Woke)
Gong Qing Cheng Shi Li He Investment Management Affiliated relationship with Shenzhen Banglin Technology
Partnership Enterprise (limited partner) Development Co., Ltd.
Director, manager and secretary of the Board Key management
5. Related transactions
(1) Related transactions for purchase and sale of goods, provision and acceptance of services
Sales of goods and services
In RMB
Amount occurred in the
Affiliated party Related transaction Occurred in previous period
current period
Property service and sales of
Qijian Technology 59,376.04 25,261.82
goods
(2) Related leasing
The Company is the leasor:
In RMB
Name of the leasee Category of asset for lease Rental recognized in the period Rental recognized in the period
Qijian Technology Houses & buildings 482,580.65 207,366.00
(3) Related guarantees
The Company is the guarantor:
In RMB10,000
Beneficiary party Amount guaranteed Start date Due date Completed or not
Wednesday, July 31, Wednesday, July 10,
FangdaZhijian 8,000.00 No
2019 2024
Jiangxi Property Wednesday, June 19,
20,000.00 Friday, June 23, 2023 No
Development 2019
FangdaJianke 50,000.00 Tuesday, July 14, 2020 Thursday, July 8, 2021 No
Tuesday, September 22, Tuesday, September 21,
FangdaJianke 25,000.00 No
2020 2021
139
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
FangdaJianke 15,000.00 Friday, April 10, 2020 Friday, March 18, 2022 No
Wednesday, April 14,
FangdaJianke 30,000.00 Friday, June 12, 2020 Yes
2021
FangdaZhichuang 10,000.00 Friday, April 10, 2020 Friday, March 18, 2022 No
Wednesday, June 23,
FangdaZhichuang 3,000.00 Monday, June 29, 2020 Yes
2021
Wednesday, March 17, Thursday, February 17,
FangdaJianke 60,000.00 No
2021 2022
Thursday, September 3, Thursday, August 19,
FangdaJianke 40,000.00 No
2020 2021
Wednesday, June 30,
FangdaZhichuang 40,000.00 Tuesday, July 28, 2020 Yes
2021
Thursday, September 3, Thursday, August 19,
FangdaZhichuang 10,000.00 No
2020 2021
Thursday, February 17,
FangdaZhichuang 20,000.00 Monday, March 29, 2021 No
2022
Fangda New Material 6,500.00 Tuesday, July 14, 2020 Tuesday, July 13, 2021 No
Fangda New Material 8,000.00 Saturday, May 23, 2020 Saturday, May 22, 2021 Yes
Tuesday, February 25, Sunday, February 24,
Fangda Property 135,000.00 No
2020 2030
Saturday, February 13,
Kechuangyuan 1,000.00 Sunday, August 23, 2020 Yes
2021
For details, please refer
FangdaJianke and Wednesday, December to the following
14,000.00 No
FangdaZhichuang 18, 2019 description of related
party guarantee (2)
FangdaJianke 20,000.00 Friday, March 6, 2020 Friday, March 5, 2021 Yes
Note to related guarantees
1. The above-mentioned guarantees are all associated guarantees within interested entities of the Group.
2. HSBC has a total credit of RMB 90 million to the Company, FangdaJianke and FangdaZhichuang and has not yet agreed on the
credit expiration date. HSBC regularly evaluates the credit status. The restriction on the use of the credit is as follows:
The Company can use non-financial bank guarantees of up to 90 million yuan to grant credit;
FangdaJianke has non-committed combined revolving credits of not more than RMB90 million including revolving loans of up to
RMB90 million, non-financial bank guarantees of up to RMB90 million and bank acceptances of up to RMB90 million.
FangdaJianke has non-committed combined revolving credits of not more than RMB140 million including revolving loans of up to
RMB50 million, non-financial bank guarantees of up to RMB140 million and bank acceptances of up to RMB140 million.
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
(4) Remuneration of key management
In RMB
Item Amount occurred in the current period Occurred in previous period
Directors, supervisors and senior
4,157,864.33 3,921,960.54
management
(5) Other related transactions
The subsidiaries FangdaJianke and Hongjun Investment acquired 100% equity of Yunzhu in cash. Yunzhu is a company
controlled by Mr. XiongJianming, the actual controller of the Company. The total transaction amount is RMB 125,388,100. All
relevant transaction procedures have been completed during the reporting period. FangdaJianke and Hongjun Investment hold 99%
and 1% shares of Yunzhu respectively.
6. Receivable and payables due with related parties
(1) Receivable interest
In RMB
Closing balance Opening balance
Item Affiliated party Remaining book Remaining book
Bad debt provision Bad debt provision
value value
Account receivable Qijian Technology 3,789.89 37.90 44,268.81 442.69
Other receivables Shenyang Fangda 42,877.00 42,877.00 42,877.00 42,877.00
Other receivables Shenzhen Woke 867,442.94 867,442.94 867,442.94 867,442.94
Ganshang Joint
Other receivables 3,791,089.25 56,487.23 3,791,089.25 56,487.23
Investment
Shenzhen Yikang
Other receivables 70,062,675.83 1,043,933.87 70,000,000.00 1,043,000.00
Real Estate Co. Ltd.
(2) Receivable interest
In RMB
Item Affiliated party Closing balance of book value Opening balance of book value
Shenzhen Yikang Real Estate
Other payables 25,062,852.92 24,912,830.32
Co. Ltd.
Other payables Qijian Technology 400.00 400.00
Other payables Ganshang Joint Investment 3,355.36 3,355.36
141
Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
XIII. Contingent events
1. Major commitments
Major commitments that exist on the balance sheet day
On November 6, 2017, Fangda Real Estate Co., Ltd., a subsidiary of the Company, and Bangshen Electronics (Shenzhen) Co.,
Ltd. signed the “Joint Development Agreement on FangdaBangshen Industrial Park (Temporary Name) Urban Renewal Project”,
and the two parties agreed to develop cooperatively. In order to develop urban renewing projects such as a “renovation project”,
Fangda Real Estate provided Party A with property compensation through renovating and renovating the property allocation terms
agreed upon by both parties, and obtained independent development rights of the project. As of June 30, 2021, Fangda Real Estate
Co., Ltd. had paid a security deposit of RMB 20 million.
(2) In July 2018 ,the Company's subsidiary Fangda Real Estate Co. Ltd. (Party A) signed a contract with Shenzhen Yikang
Real Estate Co. Ltd. (Party B1) and Shenzhen QianhaiZhongzhengDingfeng No. 6 Investment Enterprise (Limited Partnership)
(Party B2), "Shenzhen HenggangDakang Village Project Cooperation Agreement". Party B agrees to transfer the entire equity of the
project company it holds and the entire development interest of the project to Party A. Party A shall pay Party B a total of RMB600
million for the cooperation price. As of June 30, 2021, Fangda Real Estate has paid RMB 50 million yuan of deposit and RMB
61.9372 million yuan of equity transfer to Party B; Pay the service fee, deposit, preliminary willingness collection fee and the down
payment of the old chicken farm on behalf of the project company, totaling about RMB90 million yuan.
As of June 30, 2021, the Group did not have other commitments that should be disclosed.
2. Contingencies
(1) Significant contingencies on the balance sheet date
(1) Contingent liabilities formed by material lawsuit or arbitration, and their influences on the financial position
① In November 2018，FangdaJianke a subsidiary of the Group sued Fujian Huapu Real Estate Development Co. Ltd. for a
payment of RMB 13810243.67 and its overdue interest of RMB 373,380.16 totaling RMB 14,183,623.83 to the Taijiang District
People's Court of Fuzhou City. The case has not been decided. On 10 May 2019, the court ruled against the prosecution; On 16 May
2019, Fang Da Jianke filed an appeal; On 26 August 2019, the court of second instance ordered the court of first instance to revoke
the first instance decision; On 8 October 2019, it was sent back to the court of first instance, case number: (2019) Min 0103 Republic
of China 4282. In April 2020, Huapu Company filed a counterclaim application to the court, requesting FangdaJianke Company to
pay a total of RMB12,746,000.00 for the construction period and quality. The first instance has not yet been decided. Fujian Huapu
Real Estate Development Co., Ltd. has been applied for bankruptcy liquidation by other creditors, and FangdaJianke
has declared its creditor's rights to the manager. As of the date of this report, the case is still under trial.
② On June 19, 2019, LangfangAomeiJiye Real Estate Development Co., Ltd. filed a lawsuit against FangdaJianke in the
People's Court of Langfang Development Zone, demanding compensation of RMB19,721,315.00, and filed an application for
appraisal of quality, repair cost and uncompleted project cost on December 26, 2019; FangdaJianke filed a counterclaim on
September 11, 2019, demanding payment of RMB13,920,000.70, and put forward the application for completed project cost
appraisal on November 22, 2019. As of the date of this report, the case is still in the process of first instance.
③ As of December 31, 2021, due to the expiration of the implementation rules of the "Shenzhen Municipal People's
Government on the Administration of the Transfer of Industrial Buildings (Trial)" and the "Notice of the Municipal Planning and
Land Resources Commission on Matters Related to the Management of Industrial Building Transfers" and other reasons, some
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
owners of Fangda Town failed to handle the real estate ownership certificate as scheduled and could not handle the certificate until
the implementation of the new policy in February 2020. Both parties had disputes over the failure to handle the certificate. As a result
of the above-mentioned litigation, the owners proposed property preservation, and the monetary fund of RMB35,956,145.59 of
Fangda Real Estate was frozen. As of June 30, 2021, Fangda Real Estate has accrued estimated liabilities of RMB25,683,696.08 yuan
according to the most likely litigation results.
(2) Pending major lawsuits
On September 6, 2017, Chenghua District People's Court of Chengdu Municipality sentenced Sichuan ChutaHengyuan
Industrial Co., Ltd. to pay construction money to FangdaJianke within 10 days from the date of the verdict 川0108民初1828号
RMB10,242,182.99. As of the date of this report, FangdaJianke has applied for execution and has not received the
relevant payment.
On September 10, 2018, the People's Court of Lixia District of Jinan City sentenced Shandong Zhonghong Real Estate Co. Ltd.
to the Company for payment of RMB5960429.45 within 10 days from the date of the effective date of the (2018) Lu 0102 Minchu
5367 civil judgment. Shandong Zhonghong Real Estate Co., Ltd. has been applied for bankruptcy liquidation and its
assets have been successfully auctioned. Fangda Construction Technology Co., Ltd. has declared its creditor's
rights and enjoys the priority to be paid for the project price. The manager is formulating the distribution
details. As of the date of this report, no relevant payment has been received.
On November 15, 2019, the Chengdu Chenghua District People’s Court ruled (2019) Chuan 0108 Min Chu No. 428 that
Sichuan ChuantaHengyuan Industrial Co., Ltd. shall pay interest to the Company within ten days from the effective date of the
judgment (subject to RMB6,013, 841.233 as the base, from May 29, 2015 to the day when the payment is paid; with RMB841,876.
3235 as the base, from May 28, 2015 to the day when the payment is paid. Based on RMB841, 876.3235, from May 28, 2016 to the
day when the payment is paid). The Company enjoys the priority of compensation for the discounted or auctioned price of Building
C of the Chuan Tower supporting project (Film and Television Cultural Square) project within the scope of RMB 7,697,593.88. As of
the date of this report, FangdaJianke has applied for execution and has not received the relevant payment.
(3) Contingent liabilities formed by providing of guarantee to other companies’ debts and their influences on financial
situation
As of June 30, 2021, the Company provided guarantees for the following unit loans:
Name of guaranteed Guarantee Amount Term
entity (RMB10,000)
FangdaZhijian Guarantee and mortgage 123.78 2019/7/31 to 2024/7/10
guarantee
FangdaZhijian Guarantee and mortgage 586.24 2019/8/27 to 2024/7/10
guarantee
FangdaZhijian Guarantee and mortgage 211.98 2019/9/27 to 2024/7/10
guarantee
FangdaZhijian Guarantee and mortgage 892.92 2019/11/18 to 2024/7/10
guarantee
FangdaZhijian Guarantee and mortgage 837.41 2019/12/20 to 2024/7/10
guarantee
FangdaZhijian Guarantee and mortgage 843.58 2020/01/15 to 2024/07/10
guarantee
Fangda Property Guarantee, pledge and 625.00 2019/9/12 to 2023/7/22
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
mortgage guarantee
Fangda Property Guarantee, pledge and 3,000.00 2019/9/26 to 2023/7/22
mortgage guarantee
Fangda Property Guarantee, pledge and 2,000.00 2019/9/29 to 2023/7/22
mortgage guarantee
Fangda Property Guarantee, pledge and 5,000.00 2019/10/31 to 2023/7/22
mortgage guarantee
Fangda Property Guarantee, pledge and 4,021.70 020/03/9 to 2023/07/22
mortgage guarantee
Fangda Property Guarantee, pledge and 96,195.65 2020/03/13 to 2030/03/12
mortgage guarantee
Fangda Property Guarantee and mortgage 46,960.97 2021/03/18 to 2031/03/18
guarantee
Kechuangyuan Guarantee 1,001.21 2020/08/23 to 2021/02/13
Total 162,300.44
Note 1: Contingent liabilities caused by guarantees provided for other entities are all related guarantees between interested entities in
the Group.
Notes 2: The Group’s property business provides periodic mortgage guarantee for property purchasers. As of June 30, 2021, the
Company assumed the above-mentioned phased guarantee amount of RMB157,862,600.
(2) Significant contingent events that do not need to be disclosed should be explained
As of June 30, 2021, the Company has no other important contingencies to be disclosed.
3. Others
As of June 30, 2021:
Currency Guarantee balance Deposit (RMB) Credit line used (RMB)
(original currency)
RMB (CNY) 719,509,537.4 2,791,133.69 716,718,403.71
Indian rupee (INR) 87,299,635.00 - 7,590,354.06
HK $(HKD) 15,349,982.00 - 12,772,413.02
United States dollars (USD) 9,102,345.5 1,259,418.27 57,542,643.89
Euro (EUR) 150,000.00 - 1,152,930.00
Total 4,050,551.96 795,776,744.69
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
XIV. Post-balance-sheet events
1. Profit distribution
In RMB
Profit or dividend to be distributed 0.00
Profit or dividend approved to be distributed 0.00
2. Notes to other issues in post balance sheet period
The Company has no other issues in post balance sheet period that need to be disclosed on Monday, August
16, 2021 (report date approved by the Board of Directors).
XV. Other material events
1. Suspension of operations
There is no net profit from discontinued operations in the current period.
2. Segment information
(1) Recognition basis and accounting policy for segment report
The Group divides its businesses into five reporting segments. The reporting segments are determined based
on financial information required by routine internal management. The Group’s management regularly review the
operating results of the reporting segments to determine resource distribution and evaluate their performance.
The reporting segments are:
(1) Curtain wall segment, production and sales of curtain wall materials, construction curtain wall design,
production and installation;
(2) Rail transport segment: assembly and processing of metro screen doors;
(3) Real estate segment: development and operating of real estate on land of which land use right is legally
obtained by the Company; property management;
(4) New energy segment: photovoltaic power generation, photovoltaic power plant sales, photovoltaic
equipment R & D, installation, and sales, and photovoltaic power plant engineering design and installation
(5) Others
The segment report information is disclosed based on the accounting policies and measurement standards
used by the segments when reporting to the management. The policies and standards should be consistent with those
used in preparing the financial statement.
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
(2) Financial information
In RMB
Offset between
Item Curtain wall Rail transport Real estate New energy Others Total
segments
1,099,031,952. 1,568,778,834.
Turnover 267,687,038.55 192,144,565.45 8,712,992.49 12,068,999.58 10,866,714.07
98 98
Including:
external 1,097,171,007. 1,568,778,834.
267,687,038.55 188,235,871.36 8,323,350.81 7,361,567.19
transaction 07 98
income
Inter-segment
transaction 1,860,945.92 3,908,694.09 389,641.68 4,707,432.38 10,866,714.07 0.00
income
Including:
1,086,846,566. 1,500,250,618.
major business 267,675,591.44 139,197,248.64 8,712,992.49 2,181,780.48
38 47
turnover
1,208,641,803.
Operating cost 940,911,538.40 190,007,785.06 76,033,488.56 3,849,674.63 89,904.13 2,250,587.60
18
Including:
1,201,118,172.
major business 935,765,330.92 190,007,785.06 74,370,131.39 3,849,674.63 2,874,749.43
57
cost
-241,549,074.7
Operation cost -35,998,064.18 -19,651,831.82 78,165,036.90 811,034.05 -36,141,450.10 228,733,799.60
5
Operating
194,118,478.76 97,331,085.31 37,946,039.99 4,052,283.81 48,120,545.55 250,165,201.22 131,403,232.20
profit/(loss)
4,720,277,495. 6,658,684,740. 3,424,589,311. 4,258,652,240. 11,721,210,311
Total assets 627,747,687.59 548,563,316.08
83 30 92 66 .06
3,192,837,798. 4,087,612,847. 1,046,618,617. 3,005,661,573. 6,122,761,370.
Total liabilities 353,735,654.93 447,618,025.92
84 85 02 91 65
(3) Others
Since more than 90% of the Group’ revenue comes from Chinese customer and 90% of the Group’ assets are in China, no detailed
regional information is needed.
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
XVI. Notes to Financial Statements of the Parent
1. Account receivable
(1) Account receivable disclosed by categories
In RMB
Closing balance Opening balance
Remaining book Remaining book
Bad debt provision Bad debt provision
Type value Book value
Book value
Proportio Provision value Proportio Provision
Amount Amount Amount Amount
n rate n rate
Including:
Account receivable
for which bad debt 897,991. 888,385.4 892,363.4
100.00% 9,605.86 1.07% 100.00% 6,514.35 0.73% 885,849.08
provision is made by 34 8 3
group
Including:
Combination 3:
897,991. 888,385.4 892,363.4
Other business 100.00% 9,605.86 1.07% 100.00% 6,514.35 0.73% 885,849.08
34 8 3
models
897,991. 888,385.4 892,363.4
Total 100.00% 9,605.86 1.07% 100.00% 6,514.35 0.73% 885,849.08
34 8 3
Provision for bad debts by combination:
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Combination 3: Other business
897,991.34 9,605.86 1.07%
models
Total 897,991.34 9,605.86 --
Provision for bad debts by combination:
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 675,325.34 4,929.87 0.73%
1-2 years 222,666.00 4,675.99 2.10%
Total 897,991.34 9,605.86 --
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, please
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
refer to the disclosure of other receivables to disclose information about bad debts:
□ Applicable √ Inapplicable
Account age
In RMB
Age Closing balance
Within 1 year (inclusive) 675,325.34
1-2 years 222,666.00
Total 897,991.34
(2) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Type Opening balance Written-back or Closing balance
Provision Canceled Others
recovered
Combination 3:
Other business 6,514.35 3,091.51 9,605.86
models
Total 6,514.35 3,091.51 9,605.86
(3) Balance of top 5 accounts receivable at the end of the period
In RMB
Closing balance of accounts Balance of bad debt provision at
Entity Percentage (%)
receivable the end of the period
Top five summary 856,402.31 95.37% 9,302.26
Total 856,402.31 95.37%
2. Other receivables
In RMB
Item Closing balance Opening balance
Other receivables 1,624,397,140.22 1,156,802,204.91
Total 1,624,397,140.22 1,156,802,204.91
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
(1) Other receivables
1) Other receivables are disclosed by nature
In RMB
By nature Closing balance of book value Opening balance of book value
Deposit 150,699.54 150,699.54
Debt by Luo Huichi 12,992,291.48 12,992,291.48
Others 985,404.46 975,476.54
Accounts between related parties within
1,624,173,104.78 1,156,587,949.46
the scope of consolidation
Total 1,638,301,500.26 1,170,706,417.02
2) Method of bad debt provision
In RMB
First stage Second stage Third stage
Expected credit Expected credit loss for the Expected credit loss for the
Bad debt provision Total
losses in the next 12 entire duration (no credit entire duration (credit
months impairment) impairment has occurred)
Balance on Friday,
3,240.69 13,900,971.42 13,904,212.11
January 1, 2021
Balance on Friday,
January 1, 2021 in the —— —— —— ——
current period
Provision 147.93 147.93
Balance on Wednesday,
3,388.62 13,900,971.42 13,904,360.04
June 30, 2021
Changes in book balances with significant changes in the current period
□ Applicable √ Inapplicable
Account age
In RMB
Age Closing balance
Within 1 year (inclusive) 1,624,329,829.30
Over 3 years 13,971,670.96
4-5 years 42,877.00
Over 5 years 13,928,793.96
Total 1,638,301,500.26
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
3) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Type Opening balance Written-back or Closing balance
Provision Canceled Others
recovered
Other receivables
and bad debt 13,904,212.11 147.93 13,904,360.04
provision
Total 13,904,212.11 147.93 13,904,360.04
4) Balance of top 5 other receivables at the end of the period
In RMB
Balance of bad debt
Entity By nature Closing balance Age Percentage (%) provision at the end
of the period
Fangda Property Associate accounts 868,875,749.45 Less than 1 year 53.04% 0.00
FangdaJianke Associate accounts 469,824,736.51 Less than 1 year 28.68% 0.00
Fangda New Energy Associate accounts 155,776,232.69 Less than 1 year 9.51% 0.00
Fangda Property Associate accounts 92,589,038.54 Less than 1 year 5.65% 0.00
Shihui International Associate accounts 30,459,793.09 Less than 1 year 1.86% 0.00
Total -- 1,617,525,550.28 -- 98.73% 0.00
3. Long-term share equity investment
In RMB
Closing balance Opening balance
Item Remaining book Impairment Remaining book Impairment
Book value Book value
value provision value provision
Investment in
1,196,831,253.00 1,196,831,253.00 1,196,831,253.00 1,196,831,253.00
subsidiaries
Total 1,196,831,253.00 1,196,831,253.00 1,196,831,253.00 1,196,831,253.00
(1) Investment in subsidiaries
In RMB
Invested entity Opening book Change (+,-) Closing book Balance of
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
value value impairment
Increased Decreased Impairment provision at the
Others
investment investment provision end of the
period
491,950,000.0
FangdaJianke 491,950,000.00
0
Fangda New
74,496,600.00 74,496,600.00
Material
198,000,000.0
Fangda Property 198,000,000.00
0
Shihui
61,653.00 61,653.00
International
Fangda New
99,000,000.00 99,000,000.00
Energy
Hongjun
Investment 98,000,000.00 98,000,000.00
Company
Fangda
235,323,000.0
Investment 235,323,000.00
0
Partnership
1,196,831,253. 1,196,831,253.
Total
00 00
4. Operational revenue and costs
In RMB
Amount occurred in the current period Occurred in previous period
Item
Income Cost Income Cost
Other businesses 12,068,999.58 89,904.13 12,719,395.10 151,219.77
Total 12,068,999.58 89,904.13 12,719,395.10 151,219.77
Information related to performance obligations:
Information related to performance obligations:
Information related to the transaction price allocated to the remaining performance obligations:
The amount of revenue corresponding to the performance obligations that have been signed, but not yet performed or not yet
performed at the end of the reporting period is 32,364,717.13 yuan, of which 11,865,658.82 yuan is expected to be recognized in
2021, and 16,403,912.49 yuan is expected to be recognized in 2022, 4,095,145.82 yuan is expected to be recognized in 2023 and
beyond.
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
5. Investment income
In RMB
Item Amount occurred in the current period Occurred in previous period
Gains from long-term equity investment
33,660,000.00
measured by costs
Investment gain of financial products 316,138.71 338,561.17
Total 33,976,138.71 338,561.17
XVII. Supplementary Materials
1. Detailed accidental gain/loss
√ Applicable □ Inapplicable
In RMB
Item Amount Notes
Gain/loss of non-current assets -2,027,304.03
Subsidies accounted into the current income
account (except the government subsidy
closely related to the enterprise’s business 3,563,846.25
and based on unified national standard
quota)
Net gain between the beginning and merger
day of subsidiaries generated by merger of 17,512.89
companies under common control
Gain/loss from change of fair value of
transactional financial asset and liabilities,
and investment gains from disposal of
transactional and derivative financial assets
3,102,080.16
and liabilities and sellable financial assets,
other than valid period value instruments
related to the Company’s common
businesses
Write-back of impairment provision of
receivables and contract assets for which 14,600,000.00
impairment test is performed individually
Other non-business income and expenditures
-2,279,268.05
other than the above
Less: Influenced amount of income tax 2,384,080.04
Influenced amount of minority 199,880.80
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Interim Financial Statements 2021 of China Fangda Group Co., Ltd.
shareholders’ equity
Total 14,392,906.38 --
Explanation statement should be made for accidental gain/loss items defined and accidental gain/loss items defined as regular
gain/loss items according to the Explanation Announcement of Information Disclosure No. 1 - Non-recurring gain/loss mentioned.
□ Applicable √ Inapplicable
2. Net income on asset ratio and earning per share
Earning per share
Profit of the report period Weighted average net income/asset ratio Basic earnings per share Diluted Earnings per
(yuan/share) share (yuan/share)
Net profit attributable to common
2.05% 0.10 0.10
shareholders of the Company
Net profit attributable to the
common owners of the PLC after
1.79% 0.09 0.09
deducting of non-recurring
gains/losses
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profits and assets in financial statements disclosed according to the international and
Chinese account standards
□ Applicable √ Inapplicable
(2) Differences in net profits and assets in financial statements disclosed according to the international and
Chinese account standards
□ Applicable √ Inapplicable
(3) Differences in financial data using domestic and foreign accounting standards, the overseas institution
name should be specified if the difference in data audited by an overseas auditor is adjusted
None
153
