Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
CHINA FANGDA GROUP CO., LTD.
2023 Financial Statements
August 2023
1
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
I. Auditor's report
Whether the interim report is audited
□ Yes No
The financial statements for H1 2014 have not been audited.
II. Financial statements
Unit for statements in notes to financial statements: RMB yuan
1. Consolidated Balance Sheet
Prepared by: China Fangda Group Co., Ltd.
June 30, 2023
In RMB
Item June 30, 2023 January 1, 2023
Current asset:
Monetary capital 1,286,506,293.96 1,238,754,216.50
Settlement provision
Outgoing call loan
Transactional financial assets
Derivative financial assets 77,586.17 789,205.34
Notes receivable 53,200,336.92 130,428,554.49
Account receivable 639,885,280.36 832,292,348.17
Receivable financing 9,703,929.82 1,338,202.01
Prepayment 24,606,127.42 20,631,650.59
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other receivables 163,623,479.94 155,379,024.22
Including: interest receivable
Dividend receivable
Repurchasing of financial assets
Inventory 676,008,744.99 710,532,397.32
Contract assets 2,542,073,692.15 2,158,860,658.43
Assets held for sales
Non-current assets due in 1 year 321,983,047.30
Other current assets 227,624,785.92 200,981,963.60
Total current assets 5,945,293,304.95 5,449,988,220.67
Non-current assets:
Loan and advancement provided
Debt investment
Other debt investment
2
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Long-term receivables
Long-term share equity investment 54,969,336.56 54,969,042.14
Investment in other equity tools 11,968,973.86
Other non-current financial assets 7,515,217.28 7,507,434.68
Investment real estate 5,760,292,920.72 5,760,517,577.11
Fixed assets 636,359,361.87 646,812,853.36
Construction in process 272,641.50
Productive biological assets
Gas & petrol
Use right assets 19,572,056.81 19,449,693.40
Intangible assets 94,437,660.64 72,679,444.26
R&D expense
Goodwill
Long-term amortizable expenses 8,167,568.78 9,744,661.01
Deferred income tax assets 224,275,866.64 220,060,976.88
Other non-current assets 188,168,489.48 491,486,416.65
Total of non-current assets 6,994,031,120.28 7,295,197,073.35
Total of assets 12,939,324,425.23 12,745,185,294.02
Current liabilities
Short-term loans 1,575,882,917.01 1,318,238,522.78
Loans from Central Bank
Call loan received
Transactional financial liabilities
Derivative financial liabilities 1,439,675.00 293,400.00
Notes payable 761,789,844.33 734,890,208.56
Account payable 1,687,628,665.10 1,718,036,375.78
Prepayment received 2,640,045.93 1,439,653.84
Contract liabilities 111,056,258.14 207,993,671.55
Selling of repurchased financial assets
Deposit received and held for others
Entrusted trading of securities
Entrusted selling of securities
Employees' wage payable 36,639,314.27 67,150,863.91
Taxes payable 59,751,167.49 85,827,331.09
Other payables 109,992,243.02 113,425,377.70
Including: interest payable
Dividend payable
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liabilities due in 1 year 118,865,039.42 83,778,647.06
Other current liabilities 50,689,992.84 48,133,198.49
3
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Total current liabilities 4,516,375,162.55 4,379,207,250.76
Non-current liabilities:
Insurance contract provision
Long-term loans 1,193,000,000.00 1,263,500,000.00
Bond payable
Including: preferred stock
Perpetual bond
Lease liabilities 8,553,119.00 6,907,456.55
Long-term payable 204,640,219.18 197,640,219.18
Long-term employees' wage payable
Anticipated liabilities 5,520,119.55 3,372,553.84
Deferred earning 8,716,557.86 8,999,880.44
Deferred income tax liabilities 1,060,525,339.35 1,065,172,771.00
Other non-current liabilities
Total of non-current liabilities 2,480,955,354.94 2,545,592,881.01
Total liabilities 6,997,330,517.49 6,924,800,131.77
Owner's equity:
Share capital 1,073,874,227.00 1,073,874,227.00
Other equity tools
Including: preferred stock
Perpetual bond
Capital reserves 11,459,588.40 11,459,588.40
Less: Shares in stock
Other miscellaneous income 21,883,672.89 31,986,716.79
Special reserves
Surplus reserve 79,324,940.43 79,324,940.43
Common risk provisions
Retained profit 4,681,756,959.13 4,553,295,402.30
Total of owner's equity belong to the
5,868,299,387.85 5,749,940,874.92
parent company
Minor shareholders' equity 73,694,519.89 70,444,287.33
Total of owners' equity 5,941,993,907.74 5,820,385,162.25
Total of liabilities and owner's interest 12,939,324,425.23 12,745,185,294.02
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua
2. Balance Sheet of the Parent Company
In RMB
Item June 30, 2023 January 1, 2023
Current asset:
Monetary capital 23,334,355.42 87,710,288.64
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 484,193.88 647,944.58
Receivable financing
Prepayment 25,828.57 277,763.31
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Other receivables 1,073,141,303.92 1,046,500,428.02
Including: interest receivable
Dividend receivable
Inventory
Contract assets
Assets held for sales
Non-current assets due in 1 year
Other current assets 1,610,485.59 1,395,020.37
Total current assets 1,098,596,167.38 1,136,531,444.92
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term share equity investment 1,486,831,253.00 1,457,331,253.00
Investment in other equity tools 11,968,973.86
Other non-current financial assets 30,000,001.00 30,000,001.00
Investment real estate 333,236,768.00 333,236,768.00
Fixed assets 64,892,170.19 66,203,194.37
Construction in process
Productive biological assets
Gas & petrol
Use right assets 10,201,006.25 12,055,734.65
Intangible assets 887,443.37 1,038,211.65
R&D expense
Goodwill
Long-term amortizable expenses 295,311.04 393,807.16
Deferred income tax assets 34,531,293.77 30,304,587.98
Other non-current assets
Total of non-current assets 1,960,875,246.62 1,942,532,531.67
Total of assets 3,059,471,414.00 3,079,063,976.59
Current liabilities
Short-term loans 300,050,833.33 300,247,500.00
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 823,993.04 803,645.08
Prepayment received 788,550.45 820,758.71
Contract liabilities
Employees' wage payable 1,248,465.49 3,444,985.79
Taxes payable 868,784.39 353,816.35
Other payables 360,226,113.08 308,443,521.52
Including: interest payable
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Dividend payable
Liabilities held for sales
Non-current liabilities due in 1 year 3,747,236.76 3,613,300.13
Other current liabilities 27,859.15 25,213.92
Total current liabilities 667,781,835.69 617,752,741.50
Non-current liabilities:
Long-term loans
Bond payable
Including: preferred stock
Perpetual bond
Lease liabilities 7,481,056.95 9,401,331.72
Long-term payable
Long-term employees' wage payable
Anticipated liabilities
Deferred earning
Deferred income tax liabilities 73,837,939.59 74,007,022.67
Other non-current liabilities
Total of non-current liabilities 81,318,996.54 83,408,354.39
Total liabilities 749,100,832.23 701,161,095.89
Owner's equity:
Share capital 1,073,874,227.00 1,073,874,227.00
Other equity tools
Including: preferred stock
Perpetual bond
Capital reserves 360,835.52 360,835.52
Less: Shares in stock
Other miscellaneous income -10,082,945.37 -1,106,214.97
Special reserves
Surplus reserve 79,324,940.43 79,324,940.43
Retained profit 1,166,893,524.19 1,225,449,092.72
Total of owners' equity 2,310,370,581.77 2,377,902,880.70
Total of liabilities and owner's interest 3,059,471,414.00 3,079,063,976.59
3. Consolidated Income Statement
In RMB
Item H1 2023 H1 2022
1. Total revenue 2,078,846,877.32 1,613,063,315.30
Incl. Business income 2,078,846,877.32 1,613,063,315.30
Interest income
Insurance fee earned
Fee and commission received
2. Total business cost 1,877,202,076.89 1,492,648,248.55
Incl. Business cost 1,624,230,468.63 1,259,515,842.60
Interest expense
Fee and commission paid
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Insurance discharge payment
Net claim amount paid
Net insurance policy responsibility reserves provided
Insurance policy dividend paid
Reinsurance expenses
Taxes and surcharges 22,503,741.56 23,203,954.56
Sales expense 28,143,556.79 23,296,105.78
Administrative expense 79,590,941.46 74,193,251.57
R&D cost 88,989,510.66 72,809,311.17
Financial expenses 33,743,857.79 39,629,782.88
Including: interest cost 48,188,161.19 50,244,714.46
Interest income 12,097,319.82 19,918,179.96
Add: other gains 8,563,782.32 6,768,907.75
Investment gains ("-" for loss) -2,361,833.19 4,595,678.43
Incl. Investment gains from affiliates and joint
294.42 -32,974.15
ventures
Financial assets derecognised as a result of
-2,362,127.61 -1,859,057.85
amortized cost
Exchange gains ("-" for loss)
Net open hedge gains ("-" for loss)
Gains from change of fair value ("-" for loss) 129,892.00 1,180,840.01
Credit impairment ("-" for loss) 20,274,577.59 25,016,298.34
Investment impairment loss ("-" for loss) -14,673,904.92 -27,659,612.75
Investment gains ("-" for loss) 373,352.08 -815,581.50
3. Operational profit ("-" for loss) 213,950,666.31 129,501,597.03
Plus: non-operational income 204,046.54 446,386.82
Less: non-operational expenditure 569,862.59 2,578,001.31
4. Gross profit ("-" for loss) 213,584,850.26 127,369,982.54
Less: Income tax expenses 28,189,905.44 13,005,121.74
5. Net profit ("-" for net loss) 185,394,944.82 114,364,860.80
(1) By operating consistency
1. Net profit from continuous operation ("-" for net loss) 185,394,944.82 114,364,860.80
2. Net profit from discontinuous operation ("-" for net loss)
(2) By ownership
1. Net profit attributable to the shareholders of the parent
182,155,268.18 112,685,273.77
company
2. Gains and losses of minority shareholders (net losses are
3,239,676.64 1,679,587.03
shown in "-")
6. After-tax net amount of other misc. incomes -10,092,487.98 -427,835.59
After-tax net amount of other misc. incomes attributed to
-10,103,043.90 -450,330.27
parent's owner
(1) Other misc. incomes that cannot be re-classified into
-8,976,730.40
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 -8,976,730.40
4. Fair value change of the Company's credit risk
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
5. Others
(2) Other misc. incomes that will be re-classified into gain
-1,126,313.50 -450,330.27
and loss
1. Other comprehensive income that can be transferred to
profit or loss under the equity method
2. Fair value change of other debt investment
3. Gains and losses from changes in fair value of
available-for-sale financial assets
4. Other credit investment credit impairment provisions
5. Cash flow hedge reserve -1,579,210.04 -960,094.83
6. Translation difference of foreign exchange statement 452,896.54 509,764.56
7. Others
After-tax net of other misc. income attributed to minority
10,555.92 22,494.68
shareholders
7. Total of misc. incomes 175,302,456.84 113,937,025.21
Total of misc. incomes attributable to the owners of the parent
172,052,224.28 112,234,943.50
company
Total misc gains attributable to the minor shareholders 3,250,232.56 1,702,081.71
8. Earnings per share:
(1) Basic earnings per share 0.17 0.10
(2) Diluted earnings per share 0.17 0.10
Net profit contributed by entities merged under common control in the report period was RMB0.00, net profit realized by parties
merged during the previous period is RMB0.00.
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua
4. Income Statement of the Parent Company
In RMB
Item H1 2023 H1 2022
1. Turnover 12,358,317.34 14,705,232.50
Less: Operation cost 0.00 418,824.01
Taxes and surcharges 659,523.84 655,596.71
Sales expense
Administrative expense 14,762,448.49 15,050,027.61
R&D cost
Financial expenses 3,690,612.01 6,762,805.90
Including: interest cost 3,898,333.33 5,419,166.67
Interest income 404,455.21 216,667.03
Add: other gains 78,916.83 72,308.39
Investment gains ("-" for loss) 431,992.15
Incl. Investment gains from affiliates and joint
ventures
Financial assets derecognised as a result
of amortized cost ("-" for loss)
Net open hedge gains ("-" for loss)
Gains from change of fair value ("-" for loss)
Credit impairment ("-" for loss) 398,974.45 -12,016.02
Investment impairment loss ("-" for loss)
Investment gains ("-" for loss) -26,723.69
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
2. Operational profit ("-" for loss) -6,276,375.72 -7,716,460.90
Plus: non-operational income 44,168.06 0.84
Less: non-operational expenditure 33,194.93 47,636.27
3. Gross profit ("-" for loss) -6,265,402.59 -7,764,096.33
Less: Income tax expenses -1,403,545.41 -1,872,231.86
4. Net profit ("-" for net loss) -4,861,857.18 -5,891,864.47
(1) Net profit from continuous operation ("-" for net
-4,861,857.18 -5,891,864.47
loss)
(2) Net profit from discontinuous operation ("-" for net
loss)
5. After-tax net amount of other misc. incomes -8,976,730.40
(1) Other misc. incomes that cannot be re-classified
-8,976,730.40
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
-8,976,730.40
tools
4. Fair value change of the Company's credit risk
5. Others
(2) Other misc. incomes that will be re-classified into
gain and loss
1. Other comprehensive income that can be
transferred to profit or loss under the equity method
2. Fair value change of other debt investment
3. Gains and losses from changes in fair value of
available-for-sale financial assets
4. Other credit investment credit impairment
provisions
5. Cash flow hedge reserve
6. Translation difference of foreign exchange
statement
7. Others
6. Total of misc. incomes -13,838,587.58 -5,891,864.47
7. Earnings per share:
(1) Basic earnings per share
(2) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Item H1 2023 H1 2022
1. Net cash flow from business operations:
Cash received from sales of products and providing of services 1,920,455,087.38 1,404,641,263.99
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
9
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Net increase of inter-bank fund received
Net increase of repurchasing business
Net cash received from trading securities
Tax refunded 4,515,868.70 13,589,221.42
Other cash received from business operation 43,447,921.80 101,615,328.20
Sub-total of cash inflow from business operations 1,968,418,877.88 1,519,845,813.61
Cash paid for purchasing products and services 1,366,927,959.80 1,218,828,059.03
Net increase of client trade and advance
Net increase of savings in central bank and brother company
Cash paid for original contract claim
Net increase in funds dismantled
Cash paid for interest, processing fee and commission
Cash paid for policy dividend
Cash paid to and for the staff 238,020,813.88 224,849,803.47
Taxes paid 136,324,121.29 88,742,682.58
Other cash paid for business activities 264,459,694.04 294,006,061.57
Sub-total of cash outflow from business operations 2,005,732,589.01 1,826,426,606.65
Cash flow generated by business operations, net -37,313,711.13 -306,580,793.04
2. Cash flow generated by investment:
Cash received from investment recovery 2,282,234,066.40
Cash received as investment profit 2,513,790.26
Net cash retrieved from disposal of fixed assets, intangible
27,880.04 2,041,120.00
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 investment 27,880.04 2,286,788,976.66
Cash paid for construction of fixed assets, intangible assets and
60,206,301.90 19,887,603.68
other long-term assets
Cash paid as investment 2,389,975,144.00
Net increase of loan against pledge
Net cash paid for acquiring subsidiaries and other operational
units
Other cash paid for investment
Subtotal of cash outflows 60,206,301.90 2,409,862,747.68
Cash flow generated by investment activities, net -60,178,421.86 -123,073,771.02
3. Cash flow generated by financing activities:
Cash received from investment
Incl. Cash received from investment attracted by subsidiaries
from minority shareholders
Cash received from borrowed loans 1,173,858,273.98 1,168,411,688.20
Other cash received from financing activities
Subtotal of cash inflow from financing activities 1,173,858,273.98 1,168,411,688.20
Cash paid to repay debts 946,000,000.00 328,500,000.00
Cash paid as dividend, profit, or interests 100,394,812.98 102,751,331.27
Incl. Dividend and profit paid by subsidiaries to minority
shareholders
Other cash paid for financing activities 68,686,816.10 609,596,798.70
Subtotal of cash outflow from financing activities 1,115,081,629.08 1,040,848,129.97
Net cash flow generated by financing activities 58,776,644.90 127,563,558.23
4. Influence of exchange rate changes on cash and cash equivalents 3,710,265.08 3,757,947.63
5. Net increase in cash and cash equivalents -35,005,223.01 -298,333,058.20
Plus: Balance of cash and cash equivalents at the beginning of 783,677,929.06 892,251,071.59
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
term
6. Balance of cash and cash equivalents at the end of the period 748,672,706.05 593,918,013.39
6. Cash Flow Statement of the Parent Company
In RMB
Item H1 2023 H1 2022
1. Net cash flow from business operations:
Cash received from sales of products and providing of services 9,210,418.74 10,460,521.63
Tax refunded
Other cash received from business operation 2,268,519,986.44 1,764,596,018.97
Sub-total of cash inflow from business operations 2,277,730,405.18 1,775,056,540.60
Cash paid for purchasing products and services 1,697,321.13 981,699.47
Cash paid to and for the staff 10,382,381.77 11,795,461.40
Taxes paid 928,005.61 3,942,572.28
Other cash paid for business activities 2,241,886,586.57 1,647,625,265.89
Sub-total of cash outflow from business operations 2,254,894,295.08 1,664,344,999.04
Cash flow generated by business operations, net 22,836,110.10 110,711,541.56
2. Cash flow generated by investment:
Cash received from investment recovery 845,000,000.00
Cash received as investment profit 431,992.15
Net cash retrieved from disposal of fixed assets, intangible
675,000.00
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 investment 846,106,992.15
Cash paid for construction of fixed assets, intangible assets and
1,350.00 113,230.00
other long-term assets
Cash paid as investment 29,500,000.00 845,000,000.00
Net cash paid for acquiring subsidiaries and other operational
units
Other cash paid for investment
Subtotal of cash outflows 29,501,350.00 845,113,230.00
Cash flow generated by investment activities, net -29,501,350.00 993,762.15
3. Cash flow generated by financing activities:
Cash received from investment
Cash received from borrowed loans 300,000,000.00 300,000,000.00
Other cash received from financing activities
Subtotal of cash inflow from financing activities 300,000,000.00 300,000,000.00
Cash paid to repay debts 300,000,000.00 300,000,000.00
Cash paid as dividend, profit, or interests 57,788,711.35 60,578,669.24
Other cash paid for financing activities
Subtotal of cash outflow from financing activities 357,788,711.35 360,578,669.24
Net cash flow generated by financing activities -57,788,711.35 -60,578,669.24
4. Influence of exchange rate changes on cash and cash equivalents 78,018.03 -22,654.47
5. Net increase in cash and cash equivalents -64,375,933.22 51,103,980.00
Plus: Balance of cash and cash equivalents at the beginning of
87,460,288.64 111,598,536.84
term
6. Balance of cash and cash equivalents at the end of the period 23,084,355.42 162,702,516.84
7. Statement of Change in Owners' Equity (Consolidated)
Amount of the Current Term
In RMB
11
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
H1 2023
Owners' Equity Attributable to the Parent Company
Other equity tools Oth Min Tota
Co
Less er or l of
mm
Item Shar Pref Perp Capi : misc Spe Surp Reta shar
on own
e tal Shar ella cial lus ined Oth Subt ehol
erre etua risk ers'
capi Oth rese es in neo rese rese prof ers otal ders'
d l prov equi equi
tal ers rves stoc us rves rve it
shar bon isio ty ty
e d k inco
ns
me
1,07 11,4 31,9 79,3 4,55 5,74 70,4 5,82
1. Balance at
3,87 59,5 86,7 24,9 3,29 9,94 44,2 0,38
the end of
4,22 88.4 16.7 40.4 5,40 0,87 87.3 5,16
last year
7.00 0 9 3 2.30 4.92 3 2.25
Plus:
Changes in
accounting
policies
Correction of
previous
errors
Consolidatio
n of entities
under
common
control
Others
2. Balance at 1,07 11,4 31,9 79,3 4,55 5,74 70,4 5,82
the 3,87 59,5 86,7 24,9 3,29 9,94 44,2 0,38
beginning of 4,22 88.4 16.7 40.4 5,40 0,87 87.3 5,16
current year 7.00 0 9 3 2.30 4.92 3 2.25
3. Change -
128, 118, 121,
amount in 10,1 3,25
461, 358, 608,
the current 03,0 0,23
556. 512. 745.
period ("-" 43.9 2.56
83 93 49
for decrease) 0
-
182, 172, 175,
(1) Total of 10,1 3,25
155, 052, 302,
misc. 03,0 0,23
268. 224. 456.
incomes 43.9 2.56
18 28 84
0
(2)
Investment
or decreasing
of capital by
owners
1. Common
shares
invested by
owners
2. Capital
contributed
by other
equity
12
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
instrument
holders
3. Amount of
shares paid
and
accounted as
owners'
equity
4. Others
- - -
53,6 53,6 53,6
(3) Profit
93,7 93,7 93,7
allotment
11.3 11.3 11.3
5 5 5
1. Provision
of surplus
reserves
2. Common
risk
provision
- - -
3.
53,6 53,6 53,6
Distribution
93,7 93,7 93,7
to owners (or
11.3 11.3 11.3
shareholders)
5 5 5
4. Others
(4) Internal
carry-over of
owners'
equity
1.
Capitalizing
of capital
reserves (or
share capital)
2.
Capitalizing
of surplus
reserves (or
share capital)
3. Surplus
reserves used
to cover
losses
4. Retained
gain
transferred
due to
change in set
benefit
program
5. Other
miscellaneou
s income
13
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
6. Others
(5) Special
reserves
1. Provided
this year
2. Used this
period
(6) Others
1,07 11,4 21,8 79,3 4,68 5,86 73,6 5,94
4. Balance at
3,87 59,5 83,6 24,9 1,75 8,29 94,5 1,99
the end of
4,22 88.4 72.8 40.4 6,95 9,38 19.8 3,90
this period
7.00 0 9 3 9.13 7.85 9 7.74
Amount of Last Year
In RMB
H1 2022
Owners' Equity Attributable to the Parent Company
Other equity tools Oth Min
Co Tota
Less er or
mm l of
Item Shar Pref Perp Capi : misc Spe Surp Reta shar
on own
e erre etua tal Shar ella cial lus ined Oth Subt ehol
Oth risk ers'
capi d l rese es in neo rese rese prof ers otal ders'
ers prov equi
tal shar bon rves stoc us rves rve it equi
isio ty
e d k inco ty
ns
me
1,07 11,4 35,3 79,3 4,32 5,52 67,1 5,59
1. Balance at
3,87 59,5 25,8 24,9 4,05 4,03 66,0 1,20
the end of
4,22 88.4 71.7 40.4 5,25 9,88 31.6 5,91
last year
7.00 0 8 3 9.33 6.94 6 8.60
Plus:
Changes in
accounting
policies
Correction of
previous
errors
Consolidatio
n of entities
under
common
control
Others
2. Balance at 1,07 11,4 35,3 79,3 4,32 5,52 67,1 5,59
the 3,87 59,5 25,8 24,9 4,05 4,03 66,0 1,20
beginning of 4,22 88.4 71.7 40.4 5,25 9,88 31.6 5,91
current year 7.00 0 8 3 9.33 6.94 6 8.60
3. Change
- 58,9 58,5 60,2
amount in 1,70
450, 91,5 41,2 43,3
the current 2,08
330. 62.4 32.1 13.8
period ("-" 1.71
27 2 5 6
for decrease)
(1) Total of - 112, 112, 1,70 113,
14
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
misc. 450, 685, 234, 2,08 937,
incomes 330. 273. 943. 1.71 025.
27 77 50 21
(2)
Investment
or decreasing
of capital by
owners
1. Common
shares
invested by
owners
2. Capital
contributed
by other
equity
instrument
holders
3. Amount of
shares paid
and
accounted as
owners'
equity
4. Others
- - -
53,6 53,6 53,6
(3) Profit
93,7 93,7 93,7
allotment
11.3 11.3 11.3
5 5 5
1. Provision
of surplus
reserves
2. Common
risk
provision
- - -
3.
53,6 53,6 53,6
Distribution
93,7 93,7 93,7
to owners (or
11.3 11.3 11.3
shareholders)
5 5 5
4. Others
(4) Internal
carry-over of
owners'
equity
1.
Capitalizing
of capital
reserves (or
share capital)
2.
Capitalizing
of surplus
15
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
reserves (or
share capital)
3. Surplus
reserves used
to cover
losses
4. Retained
gain
transferred
due to
change in set
benefit
program
5. Other
miscellaneou
s income
6. Others
(5) Special
reserves
1. Provided
this year
2. Used this
period
(6) Others
1,07 11,4 34,8 79,3 4,38 5,58 68,8 5,65
4. Balance at
3,87 59,5 75,5 24,9 3,04 2,58 68,1 1,44
the end of
4,22 88.4 41.5 40.4 6,82 1,11 13.3 9,23
this period
7.00 0 1 3 1.75 9.09 7 2.46
8. Statement of Change in Owners' Equity (Parent Company)
Amount of the Current Term
In RMB
H1 2023
Other equity tools Other
Total
Capita Less: miscel Specia Surplu
Item Retain of
Share Prefer Perpet l Shares laneou l s
ed Others owner
capital red ual Others reserv in s reserv reserv
profit s'
share bond es stock incom es e
equity
e
-
1. Balance at 1,073, 79,32 1,225, 2,377,
360,8 1,106,
the end of 874,2 4,940. 449,0 902,8
35.52 214.9
last year 27.00 43 92.72 80.70
7
Plus:
Changes in
accounting
policies
Correction of
previous
errors
16
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Others
2. Balance at -
1,073, 79,32 1,225, 2,377,
the 360,8 1,106,
874,2 4,940. 449,0 902,8
beginning of 35.52 214.9
27.00 43 92.72 80.70
current year 7
3. Change
- - -
amount in
8,976, 58,55 67,53
the current
730.4 5,568. 2,298.
period ("-"
0 53 93
for decrease)
- - -
(1) Total of
8,976, 4,861, 13,83
misc.
730.4 857.1 8,587.
incomes
0 8 58
(2)
Investment
or decreasing
of capital by
owners
1. Common
shares
invested by
owners
2. Capital
contributed
by other
equity
instrument
holders
3. Amount of
shares paid
and
accounted as
owners'
equity
4. Others
- -
(3) Profit 53,69 53,69
allotment 3,711. 3,711.
35 35
1. Provision
of surplus
reserves
2. - -
Distribution 53,69 53,69
to owners (or 3,711. 3,711.
shareholders) 35 35
3. Others
(4) Internal
carry-over of
owners'
equity
1.
17
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Capitalizing
of capital
reserves (or
share capital)
2.
Capitalizing
of surplus
reserves (or
share capital)
3. Surplus
reserves used
to cover
losses
4. Retained
gain
transferred
due to
change in set
benefit
program
5. Other
miscellaneou
s income
6. Others
(5) Special
reserves
1. Provided
this year
2. Used this
period
(6) Others
-
4. Balance at 1,073, 79,32 1,166, 2,310,
360,8 10,08
the end of 874,2 4,940. 893,5 370,5
35.52 2,945.
this period 27.00 43 24.19 81.77
37
Amount of Last Year
In RMB
H1 2022
Other equity tools Other
Total
Capita Less: miscel Specia Surplu
Item Retain of
Share Prefer Perpet l Shares laneou l s
ed Others owner
capital red ual Others reserv in s reserv reserv
profit s'
share bond es stock incom es e
equity
e
1. Balance at 1,073, - 79,32 1,290, 2,443,
360,8
the end of 874,2 520,7 4,940. 879,7 918,9
35.52
last year 27.00 86.11 43 60.71 77.55
Plus:
Changes in
accounting
policies
18
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Correction of
previous
errors
Others
2. Balance at
1,073, - 79,32 1,290, 2,443,
the 360,8
874,2 520,7 4,940. 879,7 918,9
beginning of 35.52
27.00 86.11 43 60.71 77.55
current year
3. Change
- -
amount in
59,58 59,58
the current
5,575. 5,575.
period ("-"
82 82
for decrease)
- -
(1) Total of
5,891, 5,891,
misc.
864.4 864.4
incomes
7 7
(2)
Investment
or decreasing
of capital by
owners
1. Common
shares
invested by
owners
2. Capital
contributed
by other
equity
instrument
holders
3. Amount of
shares paid
and
accounted as
owners'
equity
4. Others
- -
(3) Profit 53,69 53,69
allotment 3,711. 3,711.
35 35
1. Provision
of surplus
reserves
2. - -
Distribution 53,69 53,69
to owners (or 3,711. 3,711.
shareholders) 35 35
3. Others
(4) Internal
carry-over of
19
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
owners'
equity
1.
Capitalizing
of capital
reserves (or
share capital)
2.
Capitalizing
of surplus
reserves (or
share capital)
3. Surplus
reserves used
to cover
losses
4. Retained
gain
transferred
due to
change in set
benefit
program
5. Other
miscellaneou
s income
6. Others
(5) Special
reserves
1. Provided
this year
2. Used this
period
(6) Others
4. Balance at 1,073, - 79,32 1,231, 2,384,
360,8
the end of 874,2 520,7 4,940. 294,1 333,4
35.52
this period 27.00 86.11 43 84.89 01.73
III. General Information
China Fangda Group Co., Ltd. (the "Company" or the "Group") is a joint stock company registered in Shenzhen,
Guangdong and was approved by the Government of Shenzhen with Document 深府办函 (1995) 194 号, and was founded, on the
basis of Shenzhen Fangda Construction Material Co., Ltd., by way of share issuing in October 1995. The unified social credit code
is: 91440300192448589C; registered address: Fangda Technology Building, Keji South 12th Road, South District, High-tech
Industrial Park, Nanshan District, Shenzhen. Mr. Xiong Jianming is the legal representative.
20
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
The Company issued foreign currency shares (B shares) and local currency shares (A shares) and listed in November 1995
and April 1996 respectively in Shenzhen Stock Exchange. The Company received the Reply to the Non-public Share Issuance of
Fangda China Group Co., Ltd. (CSRC License [2016] No.825) to allow the Company to conduct non-public issuance of
32,184,931 A-shares in June 20116. According to the profit distribution plan for 2016 approved by the 2016 general shareholders'
meeting, the Company issued five shares for every ten shares to all shareholders through surplus capitalization based on the total
789,094,836 shares on December 31, 2016. 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 April 2021 and cancelled in April 2021. The existing registered capital is
RMB1,073,874,227.00 yuan.
The Company has established the corporate governance structure of the General Meeting of Shareholders, the Board of
Directors and the Board of Supervisors. At present, it has set up the President's Office, the Administration Department, the Human
Resources Department, the Enterprise Management Department, the Finance Department, the Audit and Supervision Department,
the Securities Department, the Legal Department, the Information Management Department, the Technology Innovation
Department, the Development Planning Department and other departments, and has Shenzhen Fangda Construction Technology
Group Co., Ltd. (hereinafter referred to as Fangda Construction Technology Co., Ltd.) Fangda Zhiyuan Technology Co., Ltd.
(hereinafter referred to as Fangda Zhiyuan Technology Co., Ltd.), Fangda Jiangxi New Materials Co., Ltd., Fangda Real Estate
Co., Ltd., Fangda New Energy Co., Ltd. and other subsidiaries.
The business nature and main business activities of the Company and its subsidiaries include: (1) curtain wall division,
production and sales of curtain wall materials, design, production and installation of building curtain walls, and curtain wall testing
and maintenance services; (2) Rail transit branch, assembly and processing of subway screen doors, screen door detection and
maintenance services; (3) The real estate division is engaged in real estate development, operation and property management on
the land that has legally obtained the right to use; (4) New energy division, photovoltaic power generation and sales; R&D,
installation and sales of photovoltaic equipment, design and installation of photovoltaic power station project.
Date of financial statement approval: This financial statement is approved by the Board of Directors of the Company on
August 25, 2023.
The total number of subsidiaries included in the consolidation scope of the Company in this period is 34, and there are no
change and subsidiaries in consolidation scope in this period. Please refer to "Section X, VIII. Changes in the Consolidation
Scope" and "Section X, IX. Interests in Other Entities" for details.
21
Interim Financial Statements 2023 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 The fiscal period ranges between January 1 and December 31 of the Gregorian calendar.
3. Operation period
Our normal business cycle is one year
22
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
4. Bookkeeping standard money
The Company's bookkeeping standard currency is Renminbi, and overseas subsidiaries are based on the currency of the
main economic environment in which they operate.
5. Accounting treatment of the entities under common and different control
(1) Consolidation of entities under common control
The assets and liabilities acquired by the Company in a business combination are measured at the book value of the
combined party in the consolidated financial statements of the ultimate controlling party on the date of combination. Among them,
if the accounting policy adopted by the merger party is different from that adopted by the Company before the merger, the
accounting policy is unified based on the principle of importance, that is, the book value of the assets and liabilities of t he 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 bal ance
of the capital reserve (capital premium or equity premium), the balance of the capital reserve (capital premium or equity premium)
If it is insufficient to offset, the surplus reserve and undistributed profits will be offset in sequence.
For the accounting treatment method of business combination under the same control through step-by-step transactions, see
Chapter X, V. important accounting policies and accounting estimates. 6. Preparation method of consolidated financial statements
(5) accounting treatment of special transactions.
(2) Consolidation of entities under different control
All identifiable assets and liabilities acquired by the Company during the merger shall be measured at its fair value on the
date of purchase. Among them, if the accounting policy adopted by the merger party is different from that adopted by the
Company before the merger, the accounting policy is unified based on the principle of importance, that is, the book value of the
assets and liabilities of the merger party is adjusted according to the accounting policy of the Company. The merger cost of the
Company on the date of purchase is greater than the fair value of the assets and liabilities recognized by the purchaser in the
merger, and is recognized as goodwill. If the merger cost is less than the difference between the identifiable assets and the fair
value of the liabilities obtained by the purchaser in the enterprise merger, the merger cost and the fair value of the identifiable
assets and the liabilities obtained by the purchaser in the enterprise merger are reviewed, and the merger cost is still less than the
fair value of the identifiable assets and liabilities obtained by the purchaser after the review, the difference is considered as the
profit and loss of the current period of the merger.
23
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
For the accounting treatment method of business combination not under the same control through step-by-step transactions,
see Chapter X, V. important accounting policies and accounting estimates. 6. Preparation method of consolidated financial
statements (5) accounting treatment of special transactions.
(3) Treatment of related transaction fee in enterprise merger
Agency expenses and other administrative expenses such as auditing, legal consulting, or appraisal services occurred relating
to the merger of entities are accounted into current income account when occurred. The transaction fees of equity certificates or
liability certificates issued by the purchaser for payment for the acquisition are accounted at the initial amount of the certificates.
6. Preparation of Consolidated Financial Statements
(1) Consolidation scope
The consolidated scope of the consolidated financial statements is determined on a control basis and includes not only
subsidiaries determined on the basis of voting rights (or similar voting rights) themselves or in conjunction with other
arrangements, but also structured subjects determined on the basis of one or more contractual arrangements.
Control means the power possessed by the Company on invested entities to share variable returns by participating in related
activities of the invested entities and to impact the amount of the returns by using the power. The subsidiary company is the
subject controlled by the Company (including the enterprise, the divisible part of the invested unit and the structured subject
controlled by the enterprise, etc.). The structured subject is the subject which is not designed to determine the controlling party by
taking the voting right or similar right as the decisive factor.
(2) Preparation of Consolidated Financial Statements
The Company prepares consolidated financial statements based on the financial statements of itself and its subsidiaries and
based on other relevant information.
The Company compiles consolidated financial statements, regards the whole enterprise group as an accounting entity,
reflects the overall financial status, operating results and cash flow of the enterprise group according to the confirmation,
measurement and presentation requirements of the relevant enterprise accounting standards, and the unified accounting policy and
accounting period.
① Merge the assets, liabilities, owner's rights and interests, income, expenses and cash flow of parent company and
subsidiary company.
24
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
② Offset the long-term equity investment of the parent company to the subsidiary company and the share of the parent
company in the ownership rights of the subsidiary company.
③ Offset the influence of internal transaction between parent company, subsidiary company and subsidiary company. If an
internal transaction indicates that the relevant asset has suffered an impairment loss, the part of the loss shall be confirmed in full.
④ adjust the special transaction from the angle of enterprise group.
(3) Processing of subsidiaries during the reporting period
① Increase of subsidiaries or business
A. Subsidiary or business increased by business combination under the same control
(A) When preparing the consolidated balance sheet, adjust the opening number of the consolidated balance sheet and adjust
the related items of the comparative statement. The same report entity as the consolidated balance sheet will exist from the time of
the final control party.
(B) When preparing the consolidated cash flow statement, the cash flows of the subsidiary and the business combination
from the beginning of the current period to the end of the reporting period are included in the consolidated cash flow statement,
and the related items of the comparative statement are adjusted, which is regarded as the combined report body since the final The
controller has been there since the beginning of control.
(C) When preparing the consolidated cash flow statement, the cash flows of the subsidiary and the business combination
from the beginning of the current period to the end of the reporting period are included in the consolidated cash flow statement,
and the related items of the comparative statement are adjusted, which is regarded as the combined report body since the final The
controller has been there since the beginning of control.
B. Subsidiary or business increased by business combination under the same control
(A) When preparing the consolidated balance sheet, the opening number of the consolidated balance sheet is not adjusted.
(B) When preparing the consolidated profit statement, the income, expense and profit of the subsidiary company and the
business Purchase date and Closing balance shall be included in the consolidated profit statement.
(C) When the consolidated cash flow statement is prepared, the cash flow from the purchase date of the subsidiary to the
end of the reporting period is included in the consolidated cash flow statement.
② Disposal of subsidiaries or business
25
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
A. When preparing the consolidated balance sheet, the opening number of the consolidated balance sheet is not adjusted.
B. When preparing the consolidated profit statement, the income, expense and profit of the subsidiary company and the
business opening and disposal date shall be included in the consolidated profit statement.
C. When the consolidated cash flow statement is prepared, the cash flow from the Beginning of the period of the subsidiary
to the end of the reporting period is included in the consolidated cash flow statement.
(4) Special considerations in consolidation offsets
① The long-term equity investment held by a subsidiary company shall be regarded as the inventory shares of the Company
as a subtraction of the owner's rights and interests, which shall be listed under the item of "subtraction: Stock shares" under the
item of owner's rights and interests in the consolidated balance sheet.
The long-term equity investments held by the subsidiaries are offset by the shares of the shareholders of the subsidiaries.
② The "special reserve" and "general risk preparation" projects, because they are neither real capital (or share capital) nor
capital reserve, but also different from the retained income and undistributed profits, are restored according to the ownership of the
parent company after the long-term equity investment is offset by the ownership rights and interests of the subsidiary company.
③ If there is a temporary difference between the book value of assets and liabilities in the consolidated balance sheet and
the taxable basis of the taxpayer due to the offset of the unrealized internal sales gain or loss, the deferred income tax asset or the
deferred income tax liability is confirmed in the consolidated balance sheet, and the income tax expense in the consolidated profit
statement is adjusted, with the exception of the deferred income tax related to the transaction or event directly included in the
owner's equity and the merger of the enterprise.
④ The unrealized internal transaction gains and losses incurred by the Company from selling assets to subsidiaries shall be
fully offset against the "net profit attributable to the owners of the parent company". The unrealized internal trans action 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 .
26
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
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
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 t he
same party's final control from the later date to the merger date The relevant gains and losses, other comprehensive income and
27
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
other changes in owner's equity have been confirmed between them, and the retained earnings at the beginning of the comparati ve
statement period should be offset separately.
A. Enterprise merger under common control through multiple transactions
On the merger day, in individual financial statements, the initial investment cost of the long-term equity investment on the
merger day is based on the book value of the long-term equity investment previously held plus the sum of the additional
investment costs on the merger day.
In the consolidated financial statements, the equity of the purchaser held prior to the date of purchase is revalued according
to the fair value of the equity at the date of purchase, and the difference between the fair value and its book value is credited to the
current investment income; If the shares held by the purchaser prior to the date of purchase involve other consolidated gains under
the equity law accounting, the other consolidated gains related thereto shall be converted to the current gains on the date of
purchase, with the exception of the other consolidated gains arising from the remeasurement of the net assets or net liabilit ies 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 differ ence
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.
28
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Other comprehensive income and other owner's equity changes related to the equity investment of the atomic company are
transferred to the current profit and loss when the control is lost, except for other comprehensive income arising from the
remeasurement of the net benefits or net assets of the defined benefit plan by the investee. .
B. Multi-transaction step-by-step disposition
In consolidated financial statements, you should first determine whether a step-by-step transaction is a "blanket transaction".
If the step-by-step transaction does not belong to a "package deal", in the individual financial statements, for each
transaction before the loss of control of the subsidiary, the book value of the long-term equity investment corresponding to each
disposal of equity is carried forward, the price received and the disposal The difference between the book value of the long-term
equity investment is included in the current investment income; in the consolidated financial statements, it should be handled in
accordance with the relevant provisions of "the parent company disposes of the long-term equity investment in the subsidiary
without losing control."
If a step-by-step transaction belongs to a "blanket transaction", the transaction shall be treated as a transaction that disposes
of the subsidiary and loses control; In individual financial statements, the difference between each disposal price before the loss of
control and the book value of the long-term equity investment corresponding to the equity being disposed of is first recognized as
other consolidated gains and then converted to the current loss of control at the time of the loss of control; In the consolidated
financial statements, for each transaction prior to the loss of control, the difference between the disposition of the price and the
disposition of the investment corresponding to the share in the net assets of the subsidiary shall be recognized as other
consolidated gains and shall, at the time of the loss of control, be transferred to the loss of control for the current period.
Where the terms, conditions, and economic impact of each transaction meet one or more of the following conditions,
usually multiple transactions are treated as a "package deal":
(a) These transactions were concluded at the same time or in consideration of mutual influence.
(b) These transactions can only achieve the business result as a whole;
(c) The effectiveness of one transaction depends the occurance of at least another transaction;
(d) A single transaction is not economic and is economic when considered together with other transactions.
(5) Proportion of minority shareholders in factor companies who increase capital and dilute ownership of parent companies
Proportion of Others ( minority shareholders in factor companies who increase capital , dilute Subsidiaries of parent
companies. In the consolidated financial statements, the share of the parent company in the net book assets of the former
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
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 currency currency items on balance sheet days
At the balance sheet date, foreign currency items are translated on the spot exchange rate of the balance sheet date. The
exchange differences caused by the difference in exchange rates on the balance sheet date and initial recognizing date or previous
balance sheet date are included in the current profits and losses. Non-monetary items accounted in foreign currency and on
historical costs are exchanged with the spot exchange rate on the transaction date. Non-monetary items accounted in foreign
currency and on fair value are exchanged with the spot exchange rate on the determination date of the fair value. The exchange
difference between the accounting standard-currency amount and the original accounting standard-currency amount are included
in the current profits and losses.
(3) Translation of foreign exchange statements
Prior to the conversion of the financial statements of an enterprise's overseas operations, the accounting period and policy of
the overseas operations should be adjusted to conform to the accounting period and policy of the enterprise. The financial
statements of the corresponding currency (other than the functional currency) should be prepared according to the adjusted
accounting policy and the accounting period. The financial statements of the overseas operations should be converted according to
the following methods:
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
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 profi t 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
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
liability (or part thereof), it shall terminate the original financial liability and confirm a new financial liability in accordance with
the amended terms.
Financial asset transactions in regular ways are recognized and de-recognized on the transaction date. The conventional sale
of financial assets means the delivery of financial assets in accordance with the contractual terms and conditions, at the time set
out in the regulations or market practices. Transaction date refers to the date when the Company promises to buy or sell financial
assets.
(2) Classification and subsequent measurement of financial assets
At initial recognition, the Company classifies financial assets into the following three categories based on the business
model of managing financial assets and the contractual cash flow characteristics of financial assets: financial assets measured at
amortized cost are measured at fair value and their changes are included in other financial assets with current profit and loss and
financial assets measured at fair value through profit or loss. Unless the Company changes the business model for managing
financial assets, in this case, all affected financial assets are reclassified on the first day of the first reporting period after the
business model changes, otherwise the financial assets may not be initially confirmed.
Financial assets are measured at the fair value at the initial recognition. For financial assets measured at fair value with
variations accounted into current income account, related transaction expenses are accounted into the current income. For other
financial assets, the related transaction expenses are accounted into the initial recognized amounts. Bills receivable and accounts
receivable arising from the sale of commodities or the provision of labor services that do not contain or do not consider significant
financing components, the Company performs initial measurement according to the transaction price defined by the income
standard.
The subsequent measurement of financial assets depends on their classification:
① Financial assets measured at amortized cost
Financial assets that meet the following conditions at the same time are classified as financial assets measured at amortized
cost: The Company 's business model for managing this financial asset is to collect contractual cash flows as its goal; the contract
terms of the financial asset stipulate that Cash flow is only the payment of principal and interest based on the outstanding principal
amount. For such financial assets, the actual interest rate method is used for subsequent measurement according to the amortized
cost. The gains or losses arising from the termination of recognition, amortization or impairment based on the actual interest rate
method are included in the current profit and loss.
② Financial assets measured at fair value and whose changes are included in other comprehensive income
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
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 loss es are
transferred to current gains and losses. However, the relevant interest income of the financial asset calculated by the actual interest
rate method is included in the current profit and loss.
The Company irrevocably chooses to designate a portion of non-tradable equity instrument investment as a financial asset
measured at fair value and whose variation is included in other consolidated income. Only the relevant dividend income is
included in the current profit and loss, and the variation of fair value is recognized as other consolidated income.
③ Financial assets measured at fair value with variations accounted into current income account
The above financial assets measured at amortized cost and other financial assets measured at fair value and whose changes
are included in other comprehensive income are classified as financial assets measured at fair value and whose changes are
included in the current profit and loss. For such financial assets, fair value is used for subsequent measurement, and all changes in
fair value are included in current profit and loss.
(3) Classification and measurement of financial liabilities
The Company classifies financial liabilities into financial liabilities measured at fair value and their changes included in the
current profit and loss, loan commitments and financial guarantee contract liabilities for loans below market interest rates, and
financial liabilities measured at 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 variati on of credit
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
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 acq uired
or delivered multiplied by its fair value at the time of settlement, whether the amount of the contractual right or obligation is fixed
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
or is based entirely or in part on a variation of a variable other than the market price of the instrument of its own interest, such as
the rate of interest, the price of a commodity or the price of a financial instrument, the contract is classified as a financial liability.
(4) Derivative financial instruments and embedded derivatives
Derivative financial instruments are initially measured at the fair value of the day when the derivative transaction contract is
signed, and are subsequently measured at their fair values. Derivative financial instruments with a positive fair value are
recognized as asset, and instruments with a negative fair value are recognized as liabilities.
The gains and losses arising from the change in fair value of derivatives are directly included in the profits and losses of the
current period, except that the part of the cash flow that is valid in the hedge is included in the other consolidated income and
transferred out when the hedged item affects the gain and loss of the current period.
For a hybrid instrument containing an embedded derivative instrument, if the principal contract is a financial asset, the
hybrid instrument as a whole applies the relevant provisions of the financial asset classification. If the main contract is not a
financial asset, and the hybrid instrument is not measured at fair value and its changes are included in the current profit and loss
for accounting, the embedded derivative does not have a close relationship with the main contract in terms of economic
characteristics and risks, and it is If the instruments with the same conditions and exist separately meet the definition of derivative
instruments, the embedded derivative instruments are separated from the mixed instruments and treated as separate derivative
financial instruments. If the fair value of the embedded derivative on the acquisition date or the subsequent balance sheet date
cannot be measured separately, the hybrid instrument as a whole is designated as a financial asset or financial liability measured at
fair value and whose changes are included in the current profit or loss.
(5) Financial instrument Less
The Company shall confirm the preparation for loss on the basis of expected credit loss for financial assets measured at
amortization costs, creditor's rights investments measured at fair value, contractual assets, leasing receivables, loan commi tments
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.
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
The expected lifetime credit loss is the expected credit loss due to all possible default events during the entire expected l ife
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 r isk
has increased significantly since the initial confirmation but the credit impairment has not occurred, the financial instrument is in
the second stage. Where a credit impairment has occurred since the initial confirmation of the financial instrument, it shall be in
the third stage, and the Company shall prepare for measuring the expected credit loss of the whole survival period of the
instrument.
For financial instruments with low credit risk on the balance sheet date, the Company assumes that the credit risk has not
increased significantly since the initial recognition, and measures the loss provision based on the expected credit losses in the next
12 months.
For financial instruments that are in the first and second stages and with lower credit risk, the Company calculates interest
income based on their book balances and actual interest rates without deduction for impairment provision. For financial
instruments in the third stage, interest income is calculated based on the amortized cost and the actual interest rate after the book
balance minus the provision for impairment.
Regarding bills receivable, accounts receivable and financing receivables, regardless of whether there is a significant
financing component, the Company measures the loss provision based on the expected credit losses throughout the duration.
Accounts receivable/contract assets
Where there is objective evidence of impairment, as well as other receivable instruments, receivables, other receivables,
receivables financing and long-term receivables applicable to individual assessments, separate impairment tests are performed to
confirm expected credit losses and prepare individual impairment. For notes receivable, accounts receivable, other receivables,
financing of receivables, long-term receivables, and contract assets for which there is no objective evidence of impairment, or
when individual financial assets cannot be assessed at a reasonable cost, the Company divides bills receivable, accounts receivable,
other receivables, receivable financing, long-term receivables, and contract assets into several combinations based on credit risk
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
characteristics, and calculates expected credit losses on the basis of the combination. The basis for determining the combination is
as follows:
The basis for determining the combination of notes receivable is as follows:
Notes Receivable Combination 1 Commercial Acceptance Bill
Notes Receivable Combination 2 Bank Acceptance Bill
For Notes receivable divided into portfolios, the Company refers to historical credit loss experience, combined with current
conditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit loss
rate within the next 12 months or the entire duration Expected credit losses.
The basis for determining the combination of accounts receivable is as follows:
Accounts receivable combination 1 Accounts receivable business
Accounts receivable combination 2 Real estate receivable business
Accounts receivable combination 3 Others receivable business
Other receivable portfolio 4 Receivables from related parties within the scope of consolidation
For the accounts receivable divided into a combination, the Company refers to the historical credit loss experience,
combined with the current situation and the forecast of the future economic situation, compiles the account receivable age and the
whole expected credit loss rate table, and calculates the expected credit loss.
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
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
For other receivables divided into portfolios, the Company refers to historical credit loss experience, combined with current
conditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit loss
rate within the next 12 months or the entire duration Expected credit losses.
The basis for determining the combination of receivables financing is as follows:
Receivables financing portfolio 1 bank acceptance bill
For Notes receivable divided into portfolios, the Company refers to historical credit loss experience, combined with current
conditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit loss
rate within the next 12 months or the entire duration Expected credit losses.
The basis for determining the portfolio of contract assets is as follows:
Contract assets portfolio 1 conditional collection right of sales
Contract assets portfolio 2 Completed and unsettled project not meeting collection conditions
Contract assets portfolio 3 Quality guarantee deposit not meeting collection conditions
For contract assets divided into portfolios, the Company refers to historical credit loss experience, combined with current
conditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit loss
rate within the next 12 months or the entire duration Expected credit losses.
Other debt investment
For other receivables divided into portfolios, the Company refers to historical credit loss experience, combined with current
conditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit loss
rate within the next 12 months or the entire duration Expected credit losses.
② Lower credit risk
If the risk of default on financial instruments is low, the borrower's ability to meet its contractual cash flow obligations in
the short term is strong, and even if the economic situation and operating environment are adversely changed over a long period of
time, it may not necessarily reduce the receivables' performance of their contractual cash. The ability of the flow obligation, the
financial instrument is considered to have a lower credit risk.
③ Significant increase in credit risk
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
The Company compares the default probability of the financial instrument during the expected lifetime determined by the
balance sheet date with the default probability of the expected lifetime during the initial confirmation to determine the relative
probability of the default probability of the financial instrument during the expected lifetime Changes to assess whether the credit
risk of financial instruments has increased significantly since initial recognition.
In determining whether the credit risk has increased significantly since the initial recognition, the Company considers
reasonable and evidenced information, including forward-looking information, that can be obtained without unnecessary
additional costs or effort. The information considered by the Company includes:
A. Significant changes in internal price indicators resulting from changes in credit risk;
B. Adverse changes in business, financial or economic conditions that are expected to cause significant changes in the
debtor's ability to perform its debt service obligations;
C. Whether the actual or expected operating results of the debtor have changed significantly; whether the regulatory,
economic or technical environment of the debtor has undergone significant adverse changes;
D. Whether there is a significant change in the value of the collateral used as debt collateral or the guarantee provided by a
third party or the quality of credit enhancement. These changes are expected to reduce the debtor's economic motivation for
repayment within the time limit specified in the contract or affect the probability of default;
E. Whether there is a significant change in the economic motivation that is expected to reduce the debtor's repayment
according to the contractual deadline;
F. Anticipated changes to the loan contract, including whether the expected violation of the contract may result in the
exemption or revision of contract obligations, granting interest-free periods, rising interest rates, requiring additional collateral or
guarantees, or making other changes to the contractual framework of financial instruments change;
G. Whether the expected performance and repayment behavior of the debtor has changed significantly;
H. Whether the contract payment is overdue for more than (including) 30 days.
Based on the nature of financial instruments, the Company assesses whether credit risk has increased significantly on the
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.
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
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.
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
If the financial assets that have been written down are recovered in the future, the reversal of the impairment loss is included
in the profit or loss of the current period.
(6) Transfer of financial assets
The transfer of financial assets refers to the following two situations:
A. Transfer the contractual right to receive cash flow of financial assets to another party;
B. Transfers the financial assets to the other party in whole or in part, but reserves the contractual right to collect the cash
flow of the financial assets and undertakes the contractual obligation to pay the collected cash flow to one or more recipients.
① De-identification of transferred financial assets
Those who have transferred almost all risks and rewards in the ownership of financial assets to the transferee, or have
neither transferred nor retained almost all the risks and rewards in the ownership of financial assets, but have given up control of
the financial assets, terminate the confirmation The financial asset.
In determining whether control over the transferred financial asset has been waived, the actual capacity of the transferor to
sell the financial asset is determined. If the transferor is able to sell the transferred financial assets wholly to a third party that does
not have a relationship with them, and has no additional conditions to limit the sale, it indicates ds has waived control over the
financial assets.
The Company pays attention to the essence of financial asset transfer when judging whether financial asset transfer meets
the condition of financial asset termination.
If the overall transfer of financial assets meets the conditions for termination of confirmation, the difference between the
following two amounts is included in the current profit and loss:
A. Continuing identification of transferred Book value；
B. The sum of the amount received as a result of the transfer and the amount accrued as a result of the change in the fair
value of the transfer in respect of the termination recognized portion of the amount previously charged directly to the other
consolidated proceeds (the financial assets involved in the transfer are those classified in accordance with Article 18 of Enterprise
Accounting 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
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
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 pr ofit and
loss:
A. Termination of the book value of the recognized portion on the date of derecognition;
B. The sum of the amount received as a result of the transfer and the amount accrued as a result of the change in the fair
value of the transfer in respect of the termination recognized portion of the amount previously charged to the other consolidated
proceeds (the financial assets involved in the transfer are those classified in accordance with Article 18 of Enterprise Accounting
Standard No. 22 - Financial Instruments Recognition and Measurement as measured by the fair value and whose change is charged
to the other consolidated proceeds).
② Continue to be involved in the transferred financial assets
If neither transfer nor retain almost all the risks and rewards of the ownership of financial assets, and have not given up
control of the financial assets, the relevant financial assets should be confirmed according to the extent of their continued
involvement in the transferred financial assets, and the relevant liabilities should be recognized accordingly.
The extent to which the transferred financial assets continue to be involved refers to the extent to which the enterprise
undertakes the risk or compensation of the value change of the transferred financial assets.
(III) Continuing identification of transferred financial assets
Where almost all risks and remuneration in relation to ownership of the transferred financial assets are retained, the whole
of the transferred financial assets shall continue to be recognized and the consideration received shall be recognized as a financial
liability.
The financial asset and the recognized related financial liabilities shall not offset each other. In the subsequent accounting
period, the enterprise shall continue to recognize the income (or gain) generated by the financial asset and the costs (or losses)
incurred by the financial liability.
(7) Deduction of financial assets and liabilities
Financial assets and financial liabilities should be listed separately in the balance sheet, and cannot be offset against each
other. However, if the following conditions are met, the net amount offset by each other is listed in the balance sheet:
The Company has a statutory right to offset the confirmed amount, and such legal right is currently enforceable;
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
The Company plans to settle the net assets or realize the financial assets and liquidate the financial liabilities at the same
time.
The transferring party shall not offset the transferred financial assets and related liabilities if it does not meet the conditions
for terminating the recognition.
(8) Recognition of fair value of Finance instruments
For the method of determining the fair value of financial assets and financial liabilities, see Chapter X, V. important
accounting policies and accounting estimates 34. Other important accounting policies and accounting estimates.
10. Notes receivable
See Chapter X, V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.
11. Account receivable
See Chapter X, V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.
The Company needs to comply with the disclosure requirements of the decoration and decoration industry in the Guidelines for the
Self-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.
12. Receivable financing
See Chapter X, V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.
13. Other receivables
See Chapter X, V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.
14. Inventories
(1) Classification of inventories
Inventory refers to the finished products or commodities held by the Company for sale in daily activities, the products in
process of production, the materials and materials consumed in the process of production or providing labor services, including
entrusted processing materials, raw materials, products in process, materials in transit, stored goods, low value consumables,
development costs, development products and contract performance costs, etc.
(2) Pricing of delivering inventory
Inventories are measured at cost when procured. Raw materials, products in process and commodity stocks in transit are
measured by the weighted average method.
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
The inventory of real estate business mainly includes inventory materials, development costs, development products, etc.
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. When the control right of development products is
transferred, the individual valuation method is used to determine its actual cost.
(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 realiza ble 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.
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
④ If the factors affecting the previous write-down of inventory value have disappeared on the balance sheet date, the
amount of the write-down will be restored and transferred back within the amount of inventory depreciation reserve that has been
accrued, and the amount returned will be included in the current profit and loss.
(5) Methods of amortization of swing materials
Low-value consumables are amortized on on-off amortization basis at using.
Packages are amortized on on-off amortization basis at using.
15. Contract assets
The Company presents contract assets or liabilities in the balance sheet according to the relationship between performance
obligation and customer payment. The consideration for which the Company is entitled to receive (subject to factors other than the
passage of time) for the transfer of goods or the provision of services to customers is listed as contract assets. The Company's
obligation to transfer goods or provide services to customers for consideration received or receivable from customers is listed as
contractual liabilities.
For the determination method and accounting treatment method of the Company's expected credit loss of contract assets, see
9. Financial instruments in Chapter X, V. Important accounting policies and accounting estimates.
Contract assets and contract liabilities are listed separately in the balance sheet. Contract assets and contract liabilities under
the same contract are listed in net amount. If the net amount is the debit balance, it shall be listed in "contract assets" or "other non
current assets" according to its liquidity; if the net amount is the credit balance, it shall be listed in "contract liabilities" or "other
non current liabilities" according to its liquidity. Contract assets and contract liabilities under different contracts cannot offset each
other.
16. Contract costs
Contract cost is divided into contract performance cost and contract acquisition cost.
The cost incurred by the Company in performing the contract shall be recognized as an asset when the following conditions
are met simultaneously:
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.
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
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 t he item
of "other non current assets" when the amortization period exceeds one year or one normal business cycle at the time of initial
recognition.
17. Long-term share equity investment
The Group's long-term equity investment includes control on invested entities and significant impacts on equity investment.
Invested entities on which the Group has significant impacts are associates of the Group.
(1) Basis for recognition of common control and major influence on invested entities
Common control refers to the common control of an arrangement in accordance with the relevant agreement, and the
relevant activities of the arrangement must be agreed upon by the participants who share control. In determining whether there is
common control, the first step is to determine whether all or a group of participants collectively control the arrangement, which is
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
considered collective control by all or a group of participants if all or a group of participants must act together to determine the
activities associated with the arrangement. Secondly, it is judged whether the decision on related activities of the arrangement must
be agreed by the participants who collectively control the arrangement. If there is a combination of two or more parties that can
collectively control an arrangement, it does not constitute joint control. When judging whether there is joint control, the protective
rights enjoyed are not considered.
Major influence refers to the power to participate in decision-making of financial and operation policies of a company, but
cannot control or jointly control the making of the policies. When considering whether the Company can impose significant
impacts on the invested entity, impacts of conversion of shares with voting rights held directly or indirectly by the investor and
voting rights that can be executed in this period held by the investor and other party into shares of the invested entity should be
considered.
If the Company directly or through subsidiaries holds more than 20% (inclusive) but less than 50% of the shares with voting
rights of the invested entity, unless there is clear evidence proving that the Company cannot participate the decision-making of
production and operation of the invested entity, the Company has major influence on the invested entity.
(2) Recognition of initial investment costs
Long-term equity investments formed by merger of enterprises shall be determined in accordance with the following
provisions:
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;
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
For merger of entities under different control, the merger cost is the fair value of the asset paid, liability undertaken, and
equity securities issued for exchanging of control power over the entities at the day of acquisition. Agency expenses and other
administrative expenses such as auditing, legal consulting, or appraisal services occurred relating to the merger of entities are
accounted into current income account when occurred.
Long-term equity investments formed by merger of enterprises shall be determined in accordance with the following
provisions:
For long-term equity investment obtained by cash, the actually paid consideration is the initial investment cost. Initial
investment costs include expenses, taxes and other necessary expenditures directly related to the acquisition of long-term equity
investments;
B. Long-term equity investments acquired from the issuance of interest securities are the initial investment costs based on
the fair value of the issue interest securities;
C. For long-term equity investments obtained through non-monetary asset exchanges, if the exchange has commercial
substance and the fair value of the exchanged assets or exchanged assets can be reliably measured, the fair value of the exchanged
assets and relevant taxes shall be used as the initial Investment cost, the difference between the fair value and book value of the
swapped-out asset is included in the current profit and loss; if the non-monetary asset exchange does not meet the above two
conditions at the same time, the book value of the swapped-out asset and relevant taxes will be used as the initial investment cost.
D. Long-term equity investments acquired through debt restructuring determine their recorded value at the fair value of the
waived claims and other costs such as taxes directly attributable to the assets and account for the difference between the fair value
and the book value of the waived claims.
(3) Subsequent measurement and recognition of gain/loss
The Company uses the cost method to measure long-term share equity investment in which the Company can control the
invested entity; and uses the equity method to measure long-term share equity investment in which the Company has substantial
influence on the invested entity.
① Cost
For the long-term equity investment measured on the cost basis, except for the announced cash dividend or profit included
in the practical cost or price when the investment was made, the cash dividends or profit distributed by the invested entity are
recognized as investment gains in the current gain/loss account.
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
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 ca n
be shared or borne, recognized as investment gain and other misc. income. The book value of the long-term equity investment is
adjusted accordingly. The book value of the long-term equity investment should be accordingly decreased based on the share of
profit or cash dividend announced by the invested entity; according to other changes in the owner's equity except for net profit and
loss, other misc income and profit distribution of the invested entity, adjust the book value of the long-term equity investment and
record it in the capital surplus (other capital surplus). When the share of the net gains that can be enjoyed is recognized, it is
recognized after the net profit of the invested entity is adjusted based on the fair value of the recognizeable assets of the invested
entity according to the Company's accounting policies and accounting period. Where the accounting policy and accounting period
adopted by the Invested unit are inconsistent with the Company, the financial statements of the Invested unit shall be adjusted in
accordance with the accounting policy and accounting period of the Company, and the investment income and other consolidated
income shall be recognized. Internal transaction gain not realized between the Company and affiliates is measured according to the
shareholding proportion and the investment gains is recoginzied after deduction. The unrealized internal transaction loss between
the Company and the invested entity is the impairment loss of transferred assets and should not be written off.
Where substantial influence on invested entities is imposed or joint control is implemented due to increase in investment,
the sum of the fair value of the original equity and increased investment on the conversion date is the initial investment cost under
the equity method. If the equity investment originally held is classified as other equity instrument investment, the difference
between the fair value and the book value, as well as the accumulated gains or losses originally included in other comprehensive
income, shall be transferred out of other comprehensive income and included in retained income in the current period when the
equity method is adopted.
Where joint control or substantial influence on invested entities is lost due to disposal of part of investment, the remaining
equity after the disposal should be treated according to the Enterprise Accounting Standard No.22 – Recognition and Measurement
of Financial Instruments from the date of losing the joint control or substantial influence. The difference between the fair value
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
and book value should be accounted the profit and loss of the current period. For other misc. incomes of original share equit y
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 classi fication is
adjusted to hold the financial statements for the period to be sold.
(5) Impairment examination and providing of impairment provision
For the investment in subsidiaries and associated enterprises, the method of withdrawing asset impairment is shown in
Chapter X, V. important accounting policies and accounting estimates. 24. Impairment of long-term assets.
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 estate is determined with reference to the current market prices of same or similar real
estates in active markets; when no such price is available, with reference to the recent transaction prices and consideration of
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
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 i s continuously and reliably
obtained, the investment real estate under construction is measured by cost. When the fair value can be measured reliably or after
completion (the earlier one), it is measured at fair value. For an investment real estate whose fair value is proven unable to be
obtained continuously and reliably by objective evidence, the real estate will be measured at cost basis until it is disposed and no
residual value remains as assumed.
If the cost model is used for subsequent measurement of investment real estate, depreciation or amortization is calculated
according to the straight-line method after the cost of investment real estate minus accumulated impairment and net residual value.
See this Chapter X V. Important accounting policies, for the method of accruing asset impairment 24. Impairment of long-term
assets in accounting estimates.
The types of investment real estate, estimated economic useful life and estimated net residual value rate are determined as
follows:
Annual
Type Service year (year) Residual rate % depreciation
rate %
Houses & buildings 20-50 10.00 1.80-4.50
19. Fixed assets
(1) Recognition conditions
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.
① The economic benefits related to this fixed asset are likely to flow into the enterprise.
② The cost of fixed assets can be reliably measured.
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
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Annual depreciation
Type Depreciation method Service year Residual rate
rate %
Houses & buildings Average age 20-50 years 10% 1.8%-4.5%
Mechanical equipment Average age 10 10% 9%
Transportation
Average age 5 10% 18%
facilities
Electronics and other
Average age 5 10% 18%
devices
PV power plants Average age 20 5% 4.75%
For fixed assets for which depreciation provision is made, the depreciation rate will be determined after the accumulative
depreciation provision amount is deducted.
At end of each fiscal year, verification will be made on the useful life, predicted retained value, and depreciation basis. The
useful life will be adjusted if the useful life is different from the predicted one; the net residual value will be adjusted if the net
residual value is different from the predicted one.
20. Construction in process
(1) Construction in progress is accounted for by project classification.
(2) Standard and timing for transferring construction in process into fixed assets
The full expenditure incurred on the construction-in-progress project as a fixed asset is recorded as the value of the asset
before the asset is constructed to the intended usable state. This includes construction costs, the original cost of equipment, other
necessary expenditures incurred in order to enable the construction works to reach the intended usable status and the borrowing
costs incurred for the specific borrowing of the project and the general borrowing expenses incurred before the assets reach the
intended usable status. Construction in process will be transferred to fixed assets when it reaches the preset service condition. The
fixed assets that have reached the intended usable state but have not been completed shall be transferred to the fixed assets
according to the estimated value according to the estimated value according to the estimated value according to the project budget,
cost or actual project cost, etc. The depreciation of the fixed assets shall be accrued according to the Company's fixed assets
depreciation policy. The original estimated value shall be adjusted according to the actual cost after the completion.
XXI. Borrowing expenses
(1) Recognition principles for capitalization of borrowing expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing or production of asset satisfying the
conditions of capitalizing, are capitalized and accounted as cost of related asset.
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
(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
The term "right to use assets" refers to the right of the lessee to use the leased assets during the lease term.
At the beginning of the lease term, the right of use assets are initially measured at cost. This cost includes:
(1) The initial measurement amount of lease liabilities;
(2) For the lease payment paid on or before the beginning of the lease term, if there is lease incentive, the relevant amount of
lease incentive enjoyed shall be deducted;
(3) Initial direct expenses incurred by the lessee;
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
(4) The estimated cost incurred by the lessee for dismantling and removing the leased assets, restoring the site where the
leased assets are located or restoring the leased assets to the state agreed in the lease terms. The Company recognizes and measures
the cost in accordance with the recognition standards and measurement methods of estimated liabilities. See 29. Estimated
liabilities in Chapter X, V. important accounting policies and accounting estimates for details. If the above costs are incurred for
the production of inventories, they will be included in the cost of inventories.
Depreciation of right of use assets is accrued by using the straight-line method. If it can be reasonably determined that the
ownership of the leased asset will be obtained at the expiration of the lease term, the depreciation rate shall be determined
according to the asset category of the right to use and the estimated net residual value rate within the expected remaining service
life of the leased asset; If it is impossible to reasonably determine that the ownership of the leased asset will be obtained at the
expiration of the lease term, the depreciation rate shall be determined according to the asset category of the right of use within the
shorter of the lease term and the remaining service life of the leased asset.
23. Intangible assets
(1) Pricing method, service life and depreciation test
The valuation method of intangible assets: recorded at the actual cost at the time of acquisition.
Amortization of intangible assets:
① Useful life of intangible assets with limited useful life
Item Estimated useful life Basis
Land using right Term Use right assets
Reference to determine the lifetime of a company for which it
Trademarks and patents 10
can bring economic benefits
Reference to determine the lifetime of a company for which it
Proprietary technology 10
can bring economic benefits
Reference to determine the lifetime of a company for which it
Software 5. 10 years
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.
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
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, a nd
shall use the straight line method system to reasonably amortize their service life, and the amortization amount shall be included in
the profit and loss of the current period according to the beneficial items. The specific amortization amount is the amount 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 profit and loss period.
② The development activities carried out after the Company has completed the research stage as the development stage.
Expenditures in the development phase can be recognized as intangible assets only when the following conditions are met:
A. It is technically feasible to complete the intangible asset so that it can be used or sold;
B. Have the intention to complete the intangible asset and use or sell it;
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
C. The way intangible assets generate economic benefits, including the ability to prove that the products produced by the
intangible assets exist in the market or the intangible assets themselves exist in the market, and the intangible assets will be used
internally, which can prove their usefulness;
D. Have sufficient technical, financial and other resource support to complete the development of the intangible asset, and
have the ability to use or sell the intangible asset;
E. The expenditure attributable to the development stage of the intangible asset can be reliably measured.
24. Assets impairment
The Group uses the cost mode to continue measuring the assets impairment to investment real estate, fixed assets
construction in progress, intangible assets and goodwill (except for the inventories, investment real estate measured by the fair
value mode, deferred income tax assets and financial assets). The method is determined as follows:
The Company judges whether there is a sign of impairment to assets on the balance sheet day. If such sign exists, the
Company estimates the recoverable amount and conducts the impairment test. Impairment test is conducted annually f or 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
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
recoverable amount and recognize the related impairment loss. Then conduct impairment test on those with goodwill, compare the
book value with recoverable amount. If the recoverable amount is lower than the book value, recognize the impairment loss of the
goodwill.
Once recognized, the asset impairment loss cannot be written back in subsequent accounting period.
25. Long-term amortizable expenses
The long-term deferred expenses shall be used to calculate the expenses that have occurred but should be borne by the
Company in the current and subsequent periods with a amortization period of more than one year. The Company's long-term
deferred expenses are amortized averagely during the benefit period.
26. Contract liabilities
See 15. Contract assets in Chapter X, V. Important Accounting Policies and Accounting Estimates for details.
27. Staff remuneration
(1) Accounting of operational leasing
① Basic salary of employees (salary, bonus, allowance, subsidy)
In the accounting period for which the staff and workers provide services, the Company shall confirm the actual short -term
remuneration as liabilities and shall account for the current income and loss, except as required or permitted by other accounting
standards.
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,
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
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 t he
absence of non-cumulative salary during the actual absence accounting period.
⑤ Short-term profit share program
If the profit-sharing plan meets the following conditions at the same time, the Company shall confirm the salary payable to
the staff and workers:
A. The legal or presumptive obligation of the enterprise to pay the remuneration of its employees as a result of past matters;
B. The amount of employee compensation obligations due to the profit sharing plan can be reliably estimated.
(2) Accounting of post-employment welfare
The Company's post-employment benefit plan is defined contribution plan. Defined contribution plans include basic
endowment insurance, unemployment insurance, etc. During the accounting period when employees provide services for them, the
Company shall recognize the deposit amount calculated according to the defined deposit plan as liabilities and include it in the
current profits and losses or related asset costs.
(3) Accounting of dismiss welfare
If the Company provides termination benefits to employees, the employee compensation liabilities arising from the
termination benefits shall be recognized at the earliest of the following two and shall be included in the current profit and loss:
① When the enterprise cannot unilaterally withdraw the termination benefits provided due to the termination of labor
relations plan or layoff proposal; ② When the enterprise confirms the costs or expenses related to restructuring involving the
payment of dismissal benefits.
28. Lease liabilities
The lease liabilities are initially measured Company shall according to the present value of the unpaid lease payments at the
beginning of the lease term. The lease payment includes the following five items:
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
(1) Fixed payment amount and substantial fixed payment amount. If there is lease incentive, the relevant amount of lease
incentive shall be deducted;
(2) Variable lease payments depending on index or ratio;
(3) The exercise price of the purchase option, provided that the lessee reasonably determines that the option will be exercised;
(4) The amount to be paid for exercising the option to terminate the lease, provided that the lease term reflects that the le ssee
will exercise the option to terminate the lease;
(5) The amount expected to be paid according to the residual value of the guarantee provided by the lessee.
When calculating the present value of lease payments, the implicit interest rate of the lease is used as the discount rate. If the
implicit interest rate of the lease cannot be determined, the incremental borrowing interest rate of the company is used as the
discount rate. The difference between the lease payment amount and its present value is regarded as unrecognized financing
expenses, and the interest expenses are recognized according to the discount rate of the present value of the lease payment amount
during each period of the lease term and included in the current profit and loss. The amount of variable lease payments not
included in the measurement of lease liabilities shall be included in the current profit and loss when actually incurred.
After the beginning date of the lease term, when the actual fixed payment amount changes, the expected payable amount of
the guaranteed residual value changes, the index or ratio used to determine the lease payment amount changes, the evaluation
results or actual exercise of the purchase option, renewal option or termination option changes, the Company remeasures the lease
liability according to the present value of the changed lease payment amount, And adjust the book value of the right to use assets
accordingly.
29. Anticipated liabilities
(1) Recognition standards of anticipated liabilities
When responsibilities occurred in connection to contingent issues, and all of the following conditions are satisfied, they ar e
recognized as expectable liability in the balance sheet:
① This responsibility is a current responsibility undertaken by the Company;
② Execution of this responsibility may cause financial benefit outflow from the Company;
③ Amount of the liability can be reliably measured.
(2) Measurement of anticipated liabilities
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
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 needs to comply with the disclosure requirements of the decoration and decoration industry in the Guidelines for the
Self-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.
(1) General principles
Income is the total inflow of economic benefits formed in the daily activities of the Company, which will lead to the
increase of shareholders' equity and has nothing to do with the capital invested by shareholders.
The Company has fulfilled the performance obligation in the contract, that is, the revenue is recognized when the customer
obtains the control right of relevant goods. To obtain the control right of the relevant commodity means to be able to dominate the
use of the commodity and obtain almost all the economic benefits from it.
If there are two or more performance obligations in the contract, the Company will allocate the transaction price to each
single performance obligation according to the relative proportion of the separate selling price of the goods or services promised
by each single performance obligation on the start date of the contract, and measure the income according to the transaction price
allocated to each single performance obligation.
The transaction price refers to the amount of consideration that the 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.
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
If one of the following conditions is met, the performance obligation shall be performed within a certain period of time;
otherwise, the performance obligation shall be performed at a certain point of time:
① When the customer performs the contract in the Company, he obtains and consumes the economic benefits brought by
the Company's performance;
② Customers can control the goods under construction during the performance of the contract;
③ The goods produced by the Company in the process of performance have irreplaceable uses, and the Company has the
right to collect money for the performance part that has been completed so far during the whole contract period.
For the performance obligations performed within a certain period of time, the Company shall recognize the revenue
according to the performance progress within that period, except that the performance progress cannot be reasonably determined.
The Company determines the performance schedule of providing services according to the input method. When the progress of
performance cannot be reasonably determined, if the cost incurred by the Company is expected to be compensated, the revenue
shall be recognized according to the amount of cost incurred until the progress of performance can be reasonably determined.
For the performance obligation performed at a certain time point, the Company recognizes the revenue at the time point
when the customer obtains the control right of relevant goods. In determining whether a customer has acquired control of goods or
services, the Company will consider the following signs:
① The Company has the right to receive payment for the goods or services, that is, the customer has the obligation to pay
for the goods;
② The Company has transferred the legal ownership of the goods to the customer, that is, the customer has the legal
ownership of the goods;
③ The Company has transferred the goods in kind to the customer, that is, the customer has possessed the goods in kind;
④ The Company has transferred the main risks and rewards of the ownership of the goods to the customer, that is, the
customer has obtained the main risks and rewards of the ownership of the goods;
⑤ The product has been accepted by the customer.
Sales return clause
For the sales with sales return clauses, when the customer obtains the control right of the relevant goods, the Company shall
recognize the revenue according to the amount of consideration it is entitled to obtain due to the transfer of the goods to the
customer, and recognize the amount expected to be returned due to the sales return as the estimated liability; at the same ti me, the
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
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
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
the customer requiring to perform the remaining performance obligations The relevant balance of the above liabilities is converted
into income.
Contract change
When the project 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;
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 commodity sales contract between the company and the customer includes the performance obligation of transferring
curtain wall materials, screen door 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;
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
The following conditions should be met for the recognition of export product revenue: the Company has declared the
product according to the contract, obtained the bill of lading, collected the payment for goods or obtained the receipt certificate,
and the relevant economic benefits are likely to flow in, the main risks and rewards of the ownership of goods have been
transferred, and the legal ownership of goods has been transferred.
② Service contract
The service contract between the Company and its customers includes the performance obligations of metro platform screen
door operation maintenance, curtain wall maintenance and property services. As the Company's performance at the same time, the
customers obtain and consume the economic benefits brought by the Company's performance, the Company takes it as the
performance obligation within a certain period of time and allocates it equally during the service provision period.
③ Engineering contract
The project contract between the Company and the customer includes the performance obligations of curtain wall project
and metro platform screen door project construction. As the customer can control the goods under construction in the process of
the Company's performance, the Company takes them as the performance obligations within a certain period of time, and
recognizes the income according to the performance progress, except that the performance progress cannot be reasonably
determined. The Company determines the performance schedule of providing construction 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.
④ Real estate sales contract
The income of the Company's real estate development business is recognized when the control of the property is
transferred to the customer. Based on the terms of the sales contract and the legal provisions applicable to the contract, the control
of the property can be transferred within a certain period of time or at a certain point in time. Only if the goods produced by the
Company during the performance of the contract have irreplaceable uses, and the Company has the right to collect payment for the
cumulative performance part that has been completed during the entire contract period, the performance obligation has been
completed during the contract period. The progress is recognized as revenue within a period of time, and the progress of the
completed performance obligations is determined in accordance with the ratio of the contract costs actually incurred to compl ete
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.
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
(3) Differences in revenue recognition accounting policies caused by different business models of similar businesses
There is no difference in revenue recognition due to the adoption of different accounting policies for similar businesses.
31. Government subsidy
(1) Government subsidy
Government subsidies are recognized when the following conditions are met:
① Requirements attached to government subsidies;
② The Company can receive government subsidies.
(2) Government subsidy
When a government subsidy is monetary capital, it is measured at the received or receivable amount. None monetary capital
are measured at fair value; if no reliable fair value available, recognized at RMB1.
(3) Recognition of government subsidies
① Assets-related
Government subsidies related to assets are obtained by the Company to purchase, build or formulate in other manners long-
term assets; or subsidies related to benefits. If the asset-related government subsidy is recognized as deferred gain, should be
recorded in gain and loss in the service life. Government subsidy measured at the nominal amount is accounted into current
income account. If the relevant assets are sold, transferred, scrapped or damaged before the end of their useful life, the unallocated
relevant deferred income balance shall be transferred to the profit and loss of the current period of disposition of the assets.
Gain-related government subsidy should be accounted as follows:
The Company divides government subsidies into assets-related and earnings-related government subsidies. Gain-related
government subsidy should be accounted as follows:
Subsidy that will be used to compensate related future costs or losses should be recognized as deferred gain and recorded in
the gain and loss of the current report and offset related cost;
Subsidy that is used to compensate existing cost or loss should be recorded in the gain and loss of the current period or
offset related cost.
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
For government subsidies that include both asset-related and income-related parts, separate different parts for accounting
treatment; It is difficult to distinguish between the overall classification of government subsidies related to benefits.
Government subsidy related to routine operations should be recorded in other gains or offset related cost. Government
subsidy not related to routine operations should be recorded in non-operating income or expense.
③ Policy preferential loan discount
The policy-based preferential loan obtained has interest subsidy. If the government allocates the interest-subsidy funds to
the lending bank, the loan amount actually received will be used as the entry value of the loan, and the borrowing cost will be
calculated based on the loan principal and policy-based preferential interest rate.
If the government allocates the interest-bearing funds directly to the Group, discount interest will offset the borrowing costs.
④ Government subsidy refund
When a confirmed government subsidy needs to be returned, the book value of the asset is adjusted against the book value
of the relevant asset at initial recognition. If there is a related deferred income balance, the book balance of the related deferred
income is written off and the excess is credited to the current profit or loss; In other cases, it is directly included in th e 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;
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
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 fut ure
to offset the deductible temporary differences, the deferred income tax assets that have not been recognized in the previous period
are recognized.
On the balance sheet day, the Company re-examines the book value of the deferred income tax assets. If it is unlikely to
have adequate taxable proceeds to reduce the benefits of the deferred income tax assets, less the deferred income tax assets' book
value. When there is adequate taxable proceeds, the lessened amount will be reversed.
(2) Deferred income tax assets
All provisional differences in taxable income of the Company shall be measured on the basis of the estimated income tax
rate for the period of transfer-back and shall be recognized as deferred income tax liabilities, except that:
At the same time, the impact on income tax of deductible temporary discrepancies resulting the initial recognition of assets
or liabilities in transactions or matters with the following characteristics is inconclusive as deferred income tax Liabilities:
A. Initial recognition of goodwill;
B. Initial recognition of goodwill, or of assets or liabilities generated in transactions with the following features: the
transaction is not a merger and the transaction does not affect the accounting profit or taxable proceeds;
② For the taxable temporary differences related to the investment of subsidiaries and associated enterprises, the impact on
income tax is generally recognized as deferred income tax liabilities, except that the following two conditions are met at th e same
time:
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
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
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 impact of
temporary differences on income tax is included in the transactions or events of owner's equity, including: other comprehensi ve
income formed by changes in the fair value of other creditor's rights investment, retroactive adjustment method for changes in
accounting policies or retroactive restatement method for correction of previous (important) accounting errors, adjustment of
opening retained earnings, and mixed financial instruments containing both liability and equity components are included in
owner's equity at initial recognition.
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
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
If there is a temporary difference between the book value of assets and liabilities in the consolidated balance sheet and the
taxable basis of the taxpayer due to the offset of the unrealized internal sales gain or loss, the deferred income tax asset or the
deferred income tax liability is confirmed in the consolidated balance sheet, and the income tax expense in the consolidated profit
statement is adjusted, with the exception of the deferred income tax related to the transaction or event directly included in the
owner's equity and the merger of the enterprise.
⑤ Share payment settled by equity
If the tax law provides for allowable pre-tax deduction of expenses related to share payment, within the period for which the
cost and expense are recognized in accordance with the accounting standards, the Company shall calculate the tax basis and
temporary discrepancy based on the estimated pre-tax deduction amount at the end of the accounting period and confirm the
relevant deferred income tax if it meets the conditions for confirmation. Of these, the amount that can be deducted before tax in the
future exceeds the cost related to share payment recognized in accordance with the accounting standards, and the excess income
tax shall be directly included in the owner's equity.
33. Leasing
(1) Identification of lease
On the commencement date of the contract, the company evaluates whether the contract is a lease or includes a lease. If one
party in the contract transfers the right to control the use of one or more identified assets within a certain period in exchange for
consideration, the contract is a lease or includes a lease. In order to determine whether the contract transfers the right to control the
use of the identified assets within a certain period, the company evaluates whether the customers in the contract have the ri ght to
obtain almost all the economic benefits arising from the use of the identified assets during the use period, and have the right to
dominate the use of the identified assets during the use period.
(2) Separate identification of lease
If the contract includes multiple separate leases at the same time, the company will split the contract and conduct accounting
treatment for each separate lease. If the following conditions are met at the same time, the right to use the identified asset
constitutes a separate lease in the contract: ① the lessee can profit from using the asset alone or together with other easily
available resources; ② The asset is not highly dependent or highly related to other assets in the contract.
(3) Accounting treatment method of the Company as lessee
On the beginning date of the lease term, the Company recognizes the lease with a lease term of no more than 12 months and
excluding the purchase option as a short-term lease; When a single leased asset is a brand-new asset, the lease with lower value is
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
recognized as a low value asset lease. If the Company sublets or expects to sublet the leased assets, the original lease is not
recognized as a low value asset lease.
For all short-term leases and low value asset leases, the Company will record the lease payment amount into the relevant
asset cost or current profit and loss according to the straight-line method (or other systematic and reasonable methods) in each
period of the lease term.
In addition to the above short-term leases and low value asset leases with simplified treatment, the Company recognizes the
right to use assets and lease liabilities for the lease on the beginning date of the lease term.
① Use right assets
The term "right to use assets" refers to the right of the lessee to use the leased assets during the lease term.
At the beginning of the lease term, the right of use assets are initially measured at cost. This cost includes:
The initial measurement amount of lease liabilities;
For the lease payment paid on or before the beginning of the lease term, if there is lease incentive, the relevant amount of
lease incentive enjoyed shall be deducted;
Initial direct expenses incurred by the lessee;
The estimated cost incurred by the lessee for dismantling and removing the leased assets, restoring the site where the
leased assets are located or restoring the leased assets to the state agreed in the lease terms. The Company recognizes and
measures the cost according to the recognition standard and measurement method of estimated liabilities. If the above
costs are incurred for the production of inventories, they will be included in the cost of inventories.
Depreciation of right of use assets is accrued by using the straight-line method. If it can be reasonably determined that the
ownership of the leased asset will be obtained at the expiration of the lease term, the depreciation rate shall be determined
according to the asset category of the right to use and the estimated net residual value rate within the expected remaining service
life of the leased asset; If it is impossible to reasonably determine that the ownership of the leased asset will be obtained at the
expiration of the lease term, the depreciation rate shall be determined according to the asset category of the right of use within the
shorter of the lease term and the remaining service life of the leased asset.
② Lease liabilities
The lease liabilities are initially measured Company shall according to the present value of the unpaid lease payments at the
beginning of the lease term. The lease payment includes the following five items:
Fixed payment amount and substantial fixed payment amount. If there is lease incentive, the relevant amount of lease
incentive shall be deducted;
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Variable lease payments depending on index or ratio;
The exercise price of the purchase option, provided that the lessee reasonably determines that the option will be
exercised;
The amount to be paid for exercising the option to terminate the lease, provided that the lease term reflects that the lessee
will exercise the option to terminate the lease;
The amount expected to be paid according to the residual value of the guarantee provided by the lessee.
When calculating the present value of lease payments, the implicit interest rate of the lease is used as the discount rate. If the
implicit interest rate of the lease cannot be determined, the incremental borrowing interest rate of the company is used as the
discount rate. The difference between the lease payment amount and its present value is regarded as unrecognized financing
expenses, and the interest expenses are recognized according to the discount rate of the present value of the lease payment amount
during each period of the lease term and included in the current profit and loss. The amount of variable lease payments not
included in the measurement of lease liabilities shall be included in the current profit and loss when actually incurred.
After the beginning date of the lease term, when the actual fixed payment amount changes, the expected payable amount of
the guaranteed residual value changes, the index or ratio used to determine the lease payment amount changes, the evaluation
results or actual exercise of the purchase option, renewal option or termination option changes, the Company remeasures the lease
liability according to the present value of the changed lease payment amount, And adjust the book value of the right to use assets
accordingly.
(4) Accounting treatment method of the Company as lessor
On the lease commencement date, the Company classifies leases that have substantially transferred almost all the risks and
rewards related to the ownership of the leased assets as financial leases, and all other leases are operating leases.
① Operating lease
During each period of the lease term, the Company recognizes the lease receipts as rental income according to the straight-
line method (or other systematic and reasonable methods), and the initial direct expenses incurred are capitalized, amortized on the
same basis as the recognition of rental income, and included in the current profit and loss by stages. The variable lease payments
obtained by the Company related to operating leases that are not included in the lease receipts are included in the current p rofits
and losses when actually incurred.
② Finance lease
On the lease beginning date, the Company recognizes the financial lease receivables according to the net amount of the
lease investment (the sum of the unsecured residual value and the present value of the lease receipts not received on the lease
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
beginning date discounted according to the lease embedded interest rate), and terminates the recognition of the financial lease
assets. During each period of the lease term, the Company calculates and recognizes the interest income according to the interest
rate embedded in the lease.
The amount of variable lease payments obtained by the Company that are not included in the measurement of net lease
investment shall be included in the current profit and loss when actually incurred.
(5) Accounting treatment of lease change
① Change of lease as a separate lease
If the lease changes and meets the following conditions at the same time, the Company will treat the lease change as a
separate lease for accounting: a. the lease change expands the lease scope by increasing the use right of one or more leased assets;
B. The increased consideration is equivalent to the amount adjusted according to the conditions of the contract at the separate price
for most of the expansion of the lease scope.
② The lease change is not treated as a separate lease
A. The Company as lessee
On the effective date of the lease change, the Company reconfirmed the lease term and discounted the changed lease
payment at the revised discount rate to re-measure the lease liability. When calculating the present value of the lease payment after
the change, the implicit interest rate of the lease during the remaining lease period shall be used as the discount rate; If it is
impossible to determine the implicit interest rate of the lease for the remaining lease period, the incremental loan interest rate on
the effective date of the lease change shall be used as the discount rate.
The impact of the above lease liability adjustment shall be accounted for according to the following circumstances:
If the lease scope is reduced or the lease term is shortened due to the lease change, the book value of the right to use
assets shall be reduced, and the relevant gains or losses of partial or complete termination of the lease shall be included
in the current profits and losses;
For other lease changes, the book value of the right to use assets shall be adjusted accordingly.
The Company as leasor
If the operating lease is changed, the Company will treat it as a new lease for accounting from the effective date of the
change, and the amount of lease receipts received in advance or receivable related to the lease before the change is regarded as the
amount of new lease receipts.
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
If the change of financial lease is not accounted for as a separate lease, the Company will deal with the changed lease under
the following circumstances: if the change of lease takes effect on the lease commencement date and the lease will be classified as
an operating lease, the Company will account for it as a new lease from the effective date of lease change, and take the net lease
investment before the effective date of lease change as the book value of leased assets; If the lease change takes effect on the lease
commencement date, the lease will be classified as a financial lease, and the Company will conduct accounting treatment in
accordance with the provisions on modifying or renegotiating the contract.
(6) Sale and lease-back
The Company assesses and determines whether the asset transfer in the sale and leaseback transaction is a sale in
accordance with the provisions of 30. Income in Chapter X, V, Important accounting policies and accounting estimates.
The Company as seller (lessee)
If the asset transfer in the sale and leaseback transaction does not belong to sales, the Company will continue to recognize the
transferred assets, recognize a financial liability equal to the transfer income, and conduct accounting treatment for the financial
liability in accordance with 9。 Financial instruments in Chapter X, V, Important accounting policies and accounting estimates. If
the asset transfer belongs to sales, the Company measures the right to use assets formed by sale and leaseback according to the part
of the book value of the original assets related to the right to use obtained by leaseback, and only recognizes the relevant gains or
losses on the rights transferred to the lessor.
The Company as buyer (lessor)
If the asset transfer in the sale and leaseback transaction does not belong to sales, the company does not recognize the
transferred asset, but recognizes a financial asset equal to the transfer income, and carries out accounting treatment on the financial
asset in accordance with 9. Financial instruments in Chapter X, V. Important accounting policies and accounting estimates. If the
asset transfer belongs to sales, the Company shall conduct accounting treatment for asset purchase and asset lease in accordance
with other applicable accounting standards for business enterprises.
34. Other significant accounting policies and estimates
(1) Measurement of Fair Value
Fair value refers to the amount of asset exchange or liabilities settlement by both transaction parties familiar with the
situation in a fair deal on a voluntary basis.
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
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.
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
74
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
asset or liability in addition to the first level input value. The input value of the third level is the unobservable input value of the
related asset or liability.
(2) Accounting of hedging
(2.1) Classification of inventories
The Company's hedge is a cash flow hedge.
Cash flow hedging refers to the hedging of cash flow risk. The change in cash flow is derived from specific risks associated
with recognized assets or liabilities, expected transactions that are likely to occur, or with respect to the components of t he 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.
75
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
③ Expected transactions that are likely to occur. Anticipated transactions refer to transactions that have not yet been
committed but are expected to occur.
④ Net investment in overseas operations.
The above-mentioned project components refer to the parts that are less than the overall fair value or cash flow changes of
the project. The Company designates the following project components or their combinations as hedged items:
① The part of the change in fair value or cash flow (risk component) that is only caused by one or more specific risks in the
overall fair value or cash flow changes of the project. According to the assessment in a specific market environment, the risk
component should be able to be individually identified and reliably measured. The risk component also includes the part where the
fair value or cash flow of the hedged item changes only above or below a specific price or other variables.
② One or more selected contractual cash flows.
③ The component of the nominal amount of the project, that is, the specific part of the whole amount or quantity of the
project, may be a certain proportion of the whole project, or may be a certain level of the whole project. If a certain level includes
early repayment rights and the fair value of the early repayment rights is affected by changes in the risk of the hedge, the le vel
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 aft er 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.
76
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
If the hedging relationship no longer meets the requirements for hedging effectiveness due to the hedging ratio, but the risk
management objective of the designated hedging relationship has not changed, the Company shall rebalance the hedging
relationship.
(2.4) Revenue the of revenue recognition and measurement
If the conditions for applying hedge accounting method are met, it shall be handled according to the following methods:
Cash flow hedging
The part of hedging tool gains or losses that is valid for hedging is recognized as other comprehensive income as a cash
flow hedging reserve, and the part that is invalid for hedging (that is, other gains or losses after deducting other comprehensive
income), are counted Into the current profit and loss. The amount of cash flow hedging reserve is determined according to the
lower of the absolute amounts of the following two items: ①accumulated gains or losses of hedging instruments since the hedging.
The amount in the effective arbitrage is recognized by the accumulative gains or losses from the starting of arbitrage and
accumulative changes to the current value of future forecast cash flows from the start of arbitrage.
If the expected transaction of the hedged asset is subsequently recognized as a non-financial asset or non-financial liability, or
if the expected transaction of the non-financial asset or non-financial liability forms a defined commitment to the applicable fair
value hedge accounting, the amount of the cash flow hedge reserve originally recognized in the other consolidated income is
transferred out to account for the initial recognized amount of the asset or liability. For the remaining cash flow hedges, during the
same period when the expected cash flow to be hedged affects the profit and loss, if the expected sales occur, the cash flow hedge
reserve recognized in other comprehensive income is transferred out and included in the current profit and loss.
(3) Repurchase of the Company's shares
(3.1) In the event of a reduction in the Company's share capital as approved by legal procedure, the Company shall reduce
the share capital by the total amount of the written-off shares, adjust the owner's equity by the difference between the price paid by
the purchased stocks (including transaction costs) and the total amount of the written-off shares, offset the capital reserve (share
capital premium), surplus reserve and undistributed profits in turn; A portion of a capital reserve (share capital premium) that is
less than the total face value and less than the total face value.
(3.2) The total expenditure of the repurchase shares of the Company, which is managed as an inventory share before they
are cancelled or transferred, is converted to the cost of the inventory shares.
77
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
(3.3) Increase in the capital reserve (capital premium) at the time of transfer of an inventory unit, the portion of the transfer
income above the cost of the inventory unit; Lower than the inventory stock cost, the capital reserve (share capital premium),
surplus reserve, undistributed profits in turn.
(4) Significant accounting judgment and estimate
The Company continuously reviews significant accounting judgment and estimate adopted for the reasonable forecast of
future events based on its historical experience and other factors. Significant accounting judgment and assumptions that may lead
to major adjustment of the book value of assets and liabilities in the next accounting year are listed as follows:
Classification of financial assets
The major judgements involved in the classification of financial assets include the analysis of business model and contract
cash flow characteristics.
The company determines the business mode of managing financial assets at the level of financial asset portfolio, taking into
account such factors as how to evaluate and report financial asset performance to key managers, the risks that affect financial asset
performance and how to manage it, and how to obtain remuneration for related business managers.
When the company assesses whether the contractual cash flow of financial assets is consistent with the basic borrowing
arrangement, there are the following main judgments: whether the principal may change due to early repayment and other reasons
during the duration of the period or the amount of change; whether the interest Including the time value of money, credit risk,
other basic borrowing risks, and consideration of costs and profits. For example, does the amount paid in advance reflect onl y the
unpaid principal and the interest based on the unpaid principal, as well as the reasonable compensation paid for early termination
of the contract.
Measurement of expected credit losses of accounts receivable
The Company calculates the expected credit loss of accounts receivable through the risk exposure of accounts receivable
default and the expected credit loss rate, and determines the expected credit loss rate based on the default probability and the
default loss rate. When determining the expected credit loss rate, the Company uses internal historical credit loss experience and
other data, combined with current conditions and forward-looking information to adjust the historical data. When considering
forward-looking information, the indicators used by the Company include the risks of economic downturn, changes in the external
market environment, technological environment, and customer conditions. The Company regularly monitors and reviews
assumptions related to the calculation of expected credit losses.
78
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Deferred income tax assets
If there is adequate taxable profit to deduct the loss, the deferred income tax assets should be recognized by all the unused
tax loss. This requires the management to make a lot of judgment to forecast the time and amount of future taxable profit and
determine the amount of the deferred tax assets based on the taxation strategy.
Income recognition
The Company's revenue from providing curtain wall construction and metro platform screen door installation services is
recognized over a period of time. The recognition of the income and profit of such engineering installation services depends on the
Company's estimation of the contract results and performance progress. If the actual amount of total revenue and total cost is
higher or lower than the estimated value of the management, it will affect the amount of revenue and profit recognition of the
Company in the future.
Engineering contract
The management shall make relevant judgment to confirm the income and expenses of project contracting business
according to the performance progress. If losses are expected to occur in the project contract, such losses shall be recognized as
current expenses. The management of the Company estimates the possible losses according to the budget of the project contract.
The Company determines the transaction price according to the terms of the contract and in combination with previous customary
practices, and considers the influence of variable consideration, major financing components in the contract and other factors.
During the performance of the contract, the Company continuously reviews the estimated total contract revenue and the estimated
total contract cost. When the initial estimate changes, such as contract changes, claims and awards, the estimated total cont ract
revenue and the estimated total contract cost are revised. When the estimated total contract cost exceeds the total contract revenue,
the main business cost and estimated liabilities shall be recognized according to the loss contract to be executed.
Estimate of fair value
The Company uses fair value to measure investment real estate and needs to estimate the fair value of investment real estate
at least quarterly. This requires the management to reasonably estimate the fair value of the investment real estate with the help of
valuation experts.
35. Major changes in accounting policies and estimates
1. Changes in important accounting policies
□ Applicable Inapplicable
79
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
(2) Changes in major accounting estimates
□ Applicable Inapplicable
(3) Implementation of new accounting standards adjustment for the first time starting from 2023, and implementation of
financial statement related items at the beginning of the year for the first time
□ Applicable Inapplicable
VI. Taxation
1. Major taxes and tax rates
Tax Tax basis Tax rate
VAT Taxable income 1%, 3%, 5%, 6%, 9%, 13%
City maintenance and construction tax Taxable turnover 1%, 5%, 7%
Enterprise income tax Taxable income See the following table
Education surtax Taxable turnover 3%
Local education surtax Taxable turnover 2%
Tax rates applicable for different tax payers
Tax payer Income tax rate
The Company 25%
Fangda Jianke 15%
Fangda Zhiyuan Technology 15%
Fangda Jiangxi New Material 15%
Chengdu Fangda Construction Technology Co., Ltd. (hereinafter Fangda Chengdu
15%
Technology)
Dongguan Fangda New Material Co., Ltd. (hereinafter Fangda Dongguan New Material) 15%
Fangda Property 25%
Fangda New Energy 25%
Shenzhen Fangda Property Development Co., Ltd. (hereinafter Fangda Property
25%
Development)
Jiangxi Fangda Property Development Co., Ltd. (hereinafter Fangda Jiangxi Property
25%
Development)
Pingxiang Fangda Luxin New Energy Co., Ltd. (hereinafter Fangda Luxin New Energy) 25%
Nanchang Xinjian Fangda New Energy Co., Ltd. (hereinafter Fangda Xinjian New Energy) 25%
Dongguan Fangda New Energy Co., Ltd. (hereinafter Fangda Dongguan New Energy) 25%
Shenzhen QIanhai Kechuangyuan Software Co., Lt.d (hereinafter Kechuangyuan Software) 25%
Fangda Zhiyuan Technology (Hong Kong) Co., Ltd, (Fangda Zhiyuan Hong Kong) 16.50%
Fangda Zhiyuan Technology (Wuhan) Co., Ltd, (Fangda Wuhan Zhiyuan) 25%
Fangda Zhiyuan Technology (Nanchang) Co., Ltd, (Fangda Nanchang Zhiyuan) 25%
Fangda Zhiyuan Technology (Dongguan) Co., Ltd, (Fangda Dongguan Zhiyuan) 25%
General Rail Technology Private Limited 17%
Shihui International Holding Co., Ltd. (hereinafter Fangda Shihui International) 16.50%
Shenzhen Hongjun Investment Co., Ltd. (hereinafter Fangda Hongjun Investment) 25%
Fangda Australia Pty Ltd 30%
Shanghai Fangda Zhijian Technology Co., Ltd. (hereinafter referred to as Fangda Shanghai
15%
Zhijian company)
Shenzhen Fangda Yunzhi Technology Co., Ltd. (hereinafter Fangda Yunzhi) 25%
Shanghai Fangda Jianzhi Technology Co., Ltd. (hereinafter Fangda Shanghai Jianzhi) 25%
80
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Shenzhen Zhongrong Litai Investment Co. Ltd. (Zhongrong Litai) 25%
Chengdu Fangda Curtain Wall Technology Co., Ltd. (hereinafter Fangda Chengdu Curtain
25%
Wall)
Fangda Southeast Asia Co., Ltd. (hereinafter Fangda Southeast Asia) 20%
Shenzhen Xunfu Investment Co., Ltd. (hereinafter referred to as Fangda Xunfu Investment) 25%
Shenzhen Lifu Investment Co., Ltd. (hereinafter referred to as Fangda Lifu Investment) 25%
Shenzhen Fangda Investment Partnership (Limited Partnership) (hereinafter referred to as
Inapplicable
Fangda Investment)
Fangda Jianke (Hong Kong) Co., Ltd. (hereinafter Fangda Jianke Hong Kong) 16.50%
Shenzhen Fangda Yunzhu Technology Co., Ltd. (hereinafter Fangda Yunzhu) 15%
Shenzhen Yunzhu Testing Technology Co., Ltd. (Hereinafter Fangda Yunzhu Testing) 25%
Jiangxi Fangda Intelligent Manufacturing Technology Co., Ltd. (hereinafter referred to as
25%
Fangda Intelligent Manufacturing Company)
2. Tax preference
(1) On December 23, 2021, the subsidiary Fangda Jianke obtained the certificate of high-tech enterprise jointly issued by
Shenzhen Science and Technology Innovation Commission, Shenzhen Finance Bureau, State Administration of Taxation and
Shenzhen Taxation Bureau. The certificate number is GR202144200527. Within three years after obtaining the qualification of
high-tech enterprise (from 2021 to 2023), the income tax will be levied at 15%.
(2) On December 23, 2021, the subsidiary Fangda Zhiyuan Technology Co., Ltd. obtained the certificate of high tech
enterprise jointly issued by Shenzhen Science and Technology Innovation Commission, Shenzhen Finance Bureau, State
Administration of Taxation and Shenzhen Taxation Bureau. The certificate number is GR202144205924. Within three years after
obtaining the qualification of high tech enterprise (from 2021 to 2023), the income tax will be levied at 15%.
(3) On November 3, 2021, the subsidiary Fangda Jiangxi New Material Co., Ltd. obtained the certificate of high tech
enterprise jointly issued by Jiangxi Provincial Department of Science and Technology, Jiangxi Provincial Department of Finance,
State Administration of Taxation and Jiangxi Provincial Bureau of Taxation. The certificate number is GR202136000174. Within
three years after obtaining the qualification of high tech enterprise (2021-2023), the income tax will continue to be levied at 15%.
(4) On December 3, 2020, the subsidiary Fangda Chengdu Technology obtained the certificate of high tech enterprise No.
GR202051002193 jointly issued by the Department of Science and Technology of Sichuan Province, the Department of Finance of
Sichuan Province, the State Administration of Taxation and the Sichuan Provincial Taxation Bureau. Within three years after
obtaining the qualification of high tech enterprise (2020 December-2023 December), the income tax will continue to be levied at
15%.
(5) On December 22, 2022, the subsidiary Fangda Dongguan New Materials Co., Ltd. obtained the certificate of high tech
enterprise No.GR202244006622 jointly issued by Guangdong Provincial Department of science and technology, Guangdong
81
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Provincial Department of Finance and Guangdong Provincial Taxation Bureau. Within three years (from 2022 to 2024) after
obtaining the qualification of high tech enterprise, the income tax will be charged at 15%.
(6) The subsidiary Kechuangyuan Software is an enterprise located in Qianhai Shenzhen Hong Kong Modern Service
Industry Cooperation Zone. Its main business meets the conditions of Preferential Catalogue of Enterprise Income Tax in Qianhai
Shenzhen Hong Kong Modern Service Industry Cooperation Zone (2021)(the Regulation shall be implemented from January 1,
2021 to December 31, 2025), and the income tax is levied at 15%.
(7) On November 12, 2020, the subsidiary Fangda Shanghai Zhijian obtained the certificate of high tech enterprise
No.GR202031001525 jointly issued by Shanghai Science and Technology Commission, Shanghai Finance Bureau and Shanghai
Taxation Bureau. Within three years (from 2020 November to 2023 November) after obtaining the qualification of high tech
enterprise, the income tax will continue to be charged at 15%.
(8) On December 11, 2020, the subsidiary Fangda Yunzhu Co., Ltd. obtained the certificate of high tech enterprise jointly
issued by Shenzhen Science and Technology Innovation Commission, Shenzhen Finance Bureau, State Administration of Taxation
and Shenzhen Taxation Bureau. The certificate number is GR202044202438. Within three years after obtaining the qualification
of high tech enterprise (from 2020 December to 2023 December), the income tax will be levied at 15%.
(9) According to the Announcement of the Ministry of Finance and the State Administration of Taxation on Further
Implementing Income Tax Preferential Policies for Small and Micro Enterprises (Announcement No. 13 of 2022) and the
Announcement of the Ministry of Finance and the State Administration of Taxation on Income Tax Preferential Policies for Small
and Micro Enterprises and Individual Industrial and Commercial Households (Announcement No. 6 of 2023) issued by the
Ministry of Finance and the State Administration of Taxation, some companies belong to small and micro profit enterprises in
2023, Their income shall be subject to corporate income tax in accordance with the provisions of the aforementioned documents.
VII. Notes to the consolidated financial statements
1. Monetary capital
In RMB
Item Closing balance Opening balance
Inventory cash: 5,350.98 149.81
Bank deposits 778,541,607.39 809,288,523.64
Other monetary capital 507,959,335.59 429,465,543.05
Total 1,286,506,293.96 1,238,754,216.50
Including: total amount deposited in
40,703,365.79 49,596,440.24
overseas
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
The total amount of money
that has restrictions on use due to 537,833,587.91 455,076,287.44
mortgage, pledge or freezing
Notes:
(1) The restricted funds used in the ending balance of bank deposits are RMB36,219,081.10, mainly
consisting of RMB20,435,919.19 in the special account for labor insurance and migrant worker wages, and
RMB15,454,841.23 in the loan supervision account; The restricted funds used in the ending balance of other
monetary funds are RMB501,614,506.81, mainly including deposit for bills of exchange and guarantee letter
issuance. In addition, there are no other funds in the monetary funds at the end of the period that have
restrictions on use and potential recovery risks due to mortgages, pledges or freezing.
(2) In the preparation of the cash flow statement, the above-mentioned deposits and other restricted deposits
are not used as cash and cash equivalents.
(3) At the end of the period, the Company's total amount deposited abroad was RMB40,703,365.79.
2. Derivative financial assets
In RMB
Item Closing balance Opening balance
Forward foreign exchange contract 77,586.17 789,205.34
Total 77,586.17 789,205.34
3. Notes receivable
(1) Classification of notes receivable
In RMB
Item Closing balance Opening balance
Bank acceptance 19,796,134.07 18,434,258.87
Commercial acceptance 33,404,202.85 111,994,295.62
Total 53,200,336.92 130,428,554.49
In RMB
Closing balance Opening balance
Remaining book Remaining book
Bad debt provision Bad debt provision
Type value Book value Book
Proporti Provisio value Proporti Provisio value
Amount Amount Amount Amount
on n rate on n rate
Includin
g:
Notes 53,788,0 587,691. 53,200,3 132,708, 2,280,16 130,428,
100.00% 1.09% 100.00% 1.72%
receivab 28.76 84 36.92 717.05 2.56 554.49
83
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
le with
provisio
n for bad
debts by
portfolio
Includin
g:
Bank
19,796,1 19,796,1 18,434,2 18,434,2
acceptan 36.80% 13.89%
34.07 34.07 58.87 58.87
ce
Commer
cial 33,991,8 587,691. 33,404,2 114,274, 2,280,16 111,994,
63.20% 1.73% 86.11% 2.00%
acceptan 94.69 84 02.85 458.18 2.56 295.62
ce
53,788,0 587,691. 53,200,3 132,708, 2,280,16 130,428,
Total 100.00% 1.09% 100.00% 1.72%
28.76 84 36.92 717.05 2.56 554.49
Provision for bad debts by combination: trade acceptance
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Commercial acceptance 33,991,894.69 587,691.84 1.73%
Provision for bad debts by combination: bank acceptance
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Bank acceptance 19,796,134.07 0.00 0.00%
If the provision for bad debts of bills receivable is made in accordance with the general model of expected credit losses, please
refer to the disclosure of other receivables to disclose information about bad debts:
□ Applicable Inapplicable
(2) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Opening
Type Written-back Closing balance
balance Provision Canceled Others
or recovered
Commercial
2,280,162.56 -1,692,470.72 587,691.84
acceptance
Total 2,280,162.56 -1,692,470.72 587,691.84
Including significant recovery or reversal:
□ Applicable Inapplicable
(3) The Group has no endorsed or discounted immature receivable notes at the end of the period.
In RMB
Item De-recognized amount Not de-recognized amount
84
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Bank acceptance 19,496,134.07
Commercial acceptance 8,309,096.47
Total 27,805,230.54
(4) Notes transferred to accounts receivable due to default of the issue at the end of period
In RMB
Amount transferred to accounts receivable at the end of the
Item
period
Commercial acceptance 11,332,317.70
Total 11,332,317.70
4. Account receivable
(1) Account receivable disclosed by categories
In RMB
Closing balance Opening balance
Remaining book Remaining book
Bad debt provision Bad debt provision
Type value Book value Book
Proporti Provisio value Proporti Provisio value
Amount Amount Amount Amount
on n rate on n rate
Account
receivab
le for
which
80,430,3 74,382,6 6,047,64 89,501,8 83,454,2 6,047,64
bad debt 9.51% 92.48% 8.46% 93.24%
39.27 98.73 0.54 75.22 34.68 0.54
provisio
n is
made by
group
Includin
g:
Custome 54,873,2 54,873,2 54,873,2 54,873,2
6.49% 100.00% 5.19% 100.00%
r1 23.21 23.21 23.21 23.21
Custome 13,461,8 13,461,8 13,461,8 13,461,8
1.59% 100.00% 1.27% 100.00%
r2 34.96 34.96 34.96 34.96
Custome 4,998,86 2,499,43 2,499,43 4,998,86 2,499,43 2,499,43
0.59% 50.00% 0.47% 50.00%
r3 0.10 0.06 0.04 0.10 0.06 0.04
Custome 7,096,42 3,548,21 3,548,21 7,096,42 3,548,21 3,548,21
0.84% 50.00% 0.67% 50.00%
r4 1.00 0.50 0.50 1.00 0.50 0.50
Custome 9,071,53 9,071,53
0.86% 100.00%
r5 5.95 5.95
Account
receivab
le for
which 765,378, 131,540, 633,837, 968,358, 142,113, 826,244,
90.00% 17.19% 91.54% 14.68%
bad debt 383.41 743.59 639.82 465.15 757.52 707.63
provisio
n is
made by
85
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
group
Includ
ing:
1.
Portfolio
1:
Engineer 547,227, 121,260, 425,967, 714,451, 128,787, 585,664,
64.70% 22.16% 67.54% 18.03%
ing 703.34 383.44 319.90 919.44 757.87 161.57
operatio
ns
section
2.
Portfolio
2: Real
133,544, 6,959,84 126,584, 167,560, 7,893,60 159,666,
estate 15.79% 5.21% 15.84% 4.71%
450.99 4.99 606.00 235.16 5.97 629.19
business
payment
s
3.
Combin
ation 3: 84,606,2 3,320,51 81,285,7 86,346,3 5,432,39 80,913,9
10.00% 3.92% 8.16% 6.29%
Other 29.08 5.16 13.92 10.55 3.68 16.87
business
models
845,808, 205,923, 639,885, 1,057,86 225,567, 832,292,
Total 100.00% 24.35% 100.00% 21.32%
722.68 442.32 280.36 0,340.37 992.20 348.17
Separate bad debt provision:
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate Reason
Customer credit status
1. Customer 1 54,873,223.21 54,873,223.21 100.00% deteriorates and is hard
to recover
Customer credit status
2. Customer 2 13,461,834.96 13,461,834.96 100.00% deteriorates and is hard
to recover
Customer credit status
3. Customer 3 4,998,860.10 2,499,430.06 50.00%
deteriorates
Customer credit status
4. Customer 4 7,096,421.00 3,548,210.50 50.00%
deteriorates
Total 80,430,339.27 74,382,698.73
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 246,808,063.70 4,837,438.05 1.96%
1-2 years 97,695,067.95 5,529,540.85 5.66%
2-3 years 60,634,127.27 7,736,914.64 12.76%
3-4 years 33,524,474.50 6,624,436.16 19.76%
4-5 years 21,171,562.60 9,137,646.42 43.16%
Over 5 years 87,394,407.32 87,394,407.32 100.00%
Total 547,227,703.34 121,260,383.44
86
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Group recognition basis:
See 9. Financial Tools in Chapter X, V, Important Accounting Policies and Accounting Estimates for the recognition criteria and
instructions for withdrawing bad debt reserves by portfolio
Bad debt provision by portfolio: portfolio 2: real estate business funds
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 93,253,634.23 932,536.35 1.00%
1-2 years 82,491.13 4,124.55 5.00%
2-3 years 80,647.44 4,032.37 5.00%
3-4 years 22,273,070.00 3,340,960.50 15.00%
4-5 years
Over 5 years 17,854,608.19 2,678,191.22 15.00%
Total 133,544,450.99 6,959,844.99
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 57,933,653.13 422,912.67 0.73%
1-2 years 18,399,929.48 386,398.53 2.10%
2-3 years 3,371,027.41 283,840.51 8.42%
3-4 years 3,308,522.70 819,851.93 24.78%
4-5 years 1,371,649.28 1,186,064.44 86.47%
Over 5 years 221,447.08 221,447.08 100.00%
Total 84,606,229.08 3,320,515.16
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) 397,995,351.06
1-2 years 116,177,488.56
2-3 years 64,518,448.43
Over 3 years 267,117,434.63
3-4 years 59,106,067.20
4-5 years 32,802,831.15
Over 5 years 175,208,536.28
Total 845,808,722.68
Accounts receivable with significant individual amounts over three years of age:
Customer Balance of accounts Balance of provision for bad Reason of the age Whether there is a risk
receivable of over 3 years debts of recovery
Customer 1 Customer credit status Yes
54,873,223.21 54,873,223.21
deteriorates
Customer 2 Customer credit status Yes
25,647,044.22 25,647,044.22
deteriorates
87
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Customer 3 Customer credit status Yes
17,374,148.42 17,374,148.42
deteriorates
Customer 4 Customer credit status Yes
13,461,834.96 13,461,834.96
deteriorates
Total 111,356,250.81 111,356,250.81
(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
83,454,234.68 9,071,535.95 74,382,698.73
debt provision
1. Portfolio 1:
Engineering
128,787,757.87 -7,181,743.93 345,630.50 121,260,383.44
operations
section
2. Portfolio 2:
Real estate
7,893,605.97 -933,760.98 6,959,844.99
business
payments
3. Combination
3: Other
5,432,393.68 -2,111,878.52 3,320,515.16
business
models
Total 225,567,992.20 -10,227,383.43 9,071,535.95 345,630.50 205,923,442.32
Including significant recovery or reversal:
In RMB
Entity Written-back or recovered amount Method
After applying for bankruptcy liquidation, the customer
Customer 1 9,071,535.95 shall have priority to receive compensation and be
recovered by bank transfer
Total 9,071,535.95
After the Company verified that 100% of the bad debt reserves were withdrawn in the early stage, it was difficult for the
management to recover the original accounts receivable in full. Subsequently, the company made unremitting efforts to obtain the
priority right of repayment of the project funds through litigation, application for bankruptcy liquidation of the customer, and
finally recovered the above funds through priority repayment after the bankruptcy liquidation of the customer 1.
(3) Written-off account receivable during the period
In RMB
Item Amount
Account receivable written off 345,630.50
(4) Balance of top 5 accounts receivable at the end of the period
In RMB
88
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Closing balance of accounts Balance of bad debt provision
Entity Percentage (%)
receivable at the end of the period
No.1 54,873,223.21 6.49% 54,873,223.21
No.2 42,535,101.14 5.03% 6,043,225.96
No.3 31,500,000.00 3.72% 2,214,033.38
No.4 26,609,788.45 3.15% 1,492,136.53
No.5 26,002,530.93 3.07% 25,667,164.77
Total 181,520,643.73 21.46%
(5) Receivables derecognized due to transfer of financial assets
In RMB
Customer Way of transfer De-recognized amount Gain or loss related to the de-
recognition
Customer 1 Factoring 15,744,556.14 -524,992.11
Customer 2 Factoring 15,516,080.12 -326,570.39
Customer 3 Factoring 12,217,700.00 -425,127.73
Customer 4 Factoring 6,514,269.60 -242,897.38
Customer 5 Factoring 3,604,432.50 -122,127.97
Customer 6 Factoring 8,518,028.24 116,089.38
Customer 7 Factoring 4,838,904.94 -193,501.09
Customer 8 Factoring 7,631,987.06 -241,849.95
Customer 9 Factoring 2,000,000.00 -55,333.33
Customer 10 Factoring 6,000,000.00 -74,375.00
Customer 11 Factoring 3,318,734.36 -121,175.29
Customer 12 Factoring 4,096,559.14 -133,820.93
Customer 13 Factoring 524,197.43 -16,445.82
Total 90,525,449.53 -2,362,127.61
5. Receivable financing
In RMB
Item Closing balance Opening balance
Notes receivable 9,703,929.82 1,338,202.01
Total 9,703,929.82 1,338,202.01
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
89
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
6. Prepayment
(1) Account ages of prepayments
In RMB
Closing balance Opening balance
Age
Amount Proportion Amount Proportion
Less than 1 year 20,277,587.64 82.41% 14,930,557.32 72.37%
1-2 years 1,046,199.43 4.25% 2,913,056.11 14.12%
2-3 years 428,425.01 1.74% 582,237.19 2.82%
Over 3 years 2,853,915.34 11.60% 2,205,799.97 10.69%
Total 24,606,127.42 20,631,650.59
(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 RMB7,008,762.08,
accounting for 28.48% of the total prepayments at the end of the period.
7. Other receivables
In RMB
Item Closing balance Opening balance
Other receivables 163,623,479.94 155,379,024.22
Total 163,623,479.94 155,379,024.22
(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 100,845,767.52 99,789,014.58
Construction borrowing and advanced
38,500,146.40 33,008,395.75
payment
Staff borrowing and petty cash 2,347,718.13 1,439,503.90
VAT refund receivable 1,863,267.34 1,946,422.08
Debt by Luo Huichi 11,242,291.48
Others 31,966,759.17 30,122,981.20
Total 175,523,658.56 177,548,608.99
2) Method of bad debt provision
In RMB
First stage Second stage Third stage
Bad debt provision Expected credit Expected credit loss for Expected credit loss for Total
losses in the next 12 the entire duration (no the entire duration (credit
90
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
months credit impairment) impairment has occurred)
Balance on January 1,
2,063,971.54 117,684.26 19,987,928.97 22,169,584.77
2023
Balance on January 1,
2023 in the current period
-- transferred to the
second stage
-- transferred to the third
stage
-- transferred back to
second stage
-- transferred back to first
stage
Provision 264,051.64 -8,960.72 754,598.59 1,009,689.51
Transferred back in the
292,877.00 292,877.00
current period
Written off in the current
period
Canceled in the current
10,992,291.48 10,992,291.48
period
Other change 5,811.34 261.48 6,072.82
Balance on June 30, 2023 2,333,834.52 108,723.54 9,457,620.56 11,900,178.62
Account age
In RMB
Age Closing balance
Within 1 year (inclusive) 30,012,892.96
1-2 years 7,102,785.94
2-3 years 23,477,143.64
Over 3 years 114,930,836.02
3-4 years 6,059,121.55
4-5 years 82,166,283.63
Over 5 years 26,705,430.84
Total 175,523,658.56
3) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Opening
Type Written-back or Closing balance
balance Provision Canceled Others
recovered
Separate bad
15,026,957.59 292,877.00 10,992,291.48 3,741,789.11
debt provision
Provision for
bad debts by 7,142,627.18 1,009,689.51 6,072.82 8,158,389.51
combination
91
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Total 22,169,584.77 1,009,689.51 292,877.00 10,992,291.48 6,072.82 11,900,178.62
4) Other receivable written off in the current period
In RMB
Item Amount
Luo Huichi 10,992,291.48
Including significant other receivable:
In RMB
Writing-off
Entity Nature Amount Reason Related transaction
procedure
Impossible
enforcement of
property, with Approved by the
Debt by Luo
Luo Huichi 10,992,291.48 minimal senior No
Huichi
possibility of management
subsequent
recovery
Total 10,992,291.48
5) Balance of top 5 other receivables at the end of the period
In RMB
Balance of bad
debt provision at
Entity By nature Closing balance Age Percentage (%)
the end of the
period
Shenzhen Yikang 70,062,675.83 4-5 years
Deposit and prepaid
Real Estate Co. 43.33% 1,133,333.87
expenses 6,000,000.00 Less than 1 year
Ltd.
Bangshen
Electronics
Deposit 20,000,000.00 Over 5 years 11.39% 298,000.00
(Shenzhen) Co.,
Ltd.
Shenzhen
Rijiasheng Trading Others 18,708,945.57 2-3 years 10.66% 3,741,789.11
Co., Ltd
Shenzhen
Henggang Dakang Deposit 8,000,000.00 4-5 years 4.56% 119,200.00
Co., Ltd.
China Merchants
Futures Brokerage Deposit 6,217,934.50 Less than 1 year 3.54% 92,647.22
Co., Ltd.
Total 128,989,555.90 73.49% 5,384,970.20
6) Items involving government subsidies:
In RMB
Estimated time,
Entity Governmental subsidy Closing balance Closing age amount and basis of
receipt
92
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Shenzhen Tax Bureau
Full recovered in less
of State Administration Receivable refund of VAT 964,545.88 Less than 1 year
than 1 year
of Taxation
8. Inventories
Whether the Company needs to comply with disclosure requirements of the real estate industry.
No
(1) Classification of inventories
In RMB
Closing balance Opening balance
Provision Provision
for for
inventory inventory
depreciati depreciati
Item on or on or
Remaining book Remaining book
contract Book value contract Book value
value value
performan performan
ce cost ce cost
impairme impairme
nt nt
provision provision
Raw materials 102,216,693.48 102,216,693.48 124,041,162.65 124,041,162.65
Product in
58,413,723.22 58,413,723.22 95,231,082.82 95,231,082.82
process
Finished goods
11,448,102.53 11,448,102.53 8,937,351.29 8,937,351.29
in stock
Contract
performance 89,656,600.87 89,656,600.87 88,165,638.94 88,165,638.94
costs
Goods
33,343,876.40 33,343,876.40 1,675,486.58 1,675,486.58
delivered
Low price
325,030.91 325,030.91 193,880.28 193,880.28
consumable
OEM materials 14,738,285.32 14,738,285.32 22,479,288.26 22,479,288.26
Development
221,831,857.26 221,831,857.26 219,112,637.71 219,112,637.71
cost
Development
144,034,575.00 144,034,575.00 150,695,868.79 150,695,868.79
products
Total 676,008,744.99 676,008,744.99 710,532,397.32 710,532,397.32
(2) Balance at the end of the period includes capitalization of borrowing expense
As of June 30, 2023, the capitalization amount of borrowing costs in the ending inventory balance is RMB5,626,053.35.
(3) Explanation of the current amortization amount of contract performance cost
The current amortization amount of contract performance costs is included in operating costs.
93
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
9. Contract assets
In RMB
Closing balance Opening balance
Item Remaining Impairment Remaining Impairment
Book value Book value
book value provision book value provision
Completed and
unsettled
project funds 2,582,968,526. 2,391,107,394. 2,176,000,625. 2,002,607,254.
191,861,131.57 173,393,371.22
that fail to meet 03 46 48 26
the collection
conditions
Quality
guarantee
deposit that
119,839,601.21 16,134,937.67 103,704,663.54 133,413,895.62 19,336,873.48 114,077,022.14
fails to meet the
collection
conditions
Sales funds
with
47,686,304.24 424,670.09 47,261,634.15 42,541,809.75 365,427.72 42,176,382.03
conditional
collection right
2,750,494,431. 2,542,073,692. 2,351,956,330. 2,158,860,658.
Total 208,420,739.33 193,095,672.42
48 15 85 43
The amount and reasons for major changes in the book value of contract assets during the current period:
In RMB
Item Change Reason
This is mainly due to the unsettled project funds
with conditional collection rights arising from the
Completed and unsettled project funds 388,500,140.20
revenue recognized in the project contract this
year
Total 388,500,140.20 ——
If the provision for impairment of contract assets is made in accordance with the general model of expected credit losses, please
refer to the disclosure of other receivables to disclose information about impairment:
□ Applicable Inapplicable
Provision made for bad debts of contract assets in this period
In RMB
Transferred back in the Written off in the
Item Provision Reason
current period current period
Separate bad debt
provision
Provision for bad debts
15,325,066.91
by combination
Total 15,325,066.91
10. Non-current assets due in 1 year
In RMB
Item Closing balance Opening balance
Certificate of deposit 321,983,047.30
94
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Total 321,983,047.30
11. Other current assets
In RMB
Item Closing balance Opening balance
Reclassification of VAT debit balance
205,783,723.96 174,264,248.29
and input to be certified
Overpayment and prepayment of income
4,706,850.28 3,997,524.27
tax
Other prepaid taxes 4,136,441.06 3,348,706.84
Payment to be collected on behalf of
3,003,841.89 12,015,367.57
suppliers
Agencies 4,222,606.85 2,064,871.00
Deferred discount expenses and others 5,771,321.88 5,291,245.63
Total 227,624,785.92 200,981,963.60
12. Long-term share equity investment
In RMB
Change (+,-)
Balance
Investm of
ent gain impair
Other Cash
Opening Incre and loss ment
Investe Decreas miscell dividen Impair Closing
book ased recogni Other provisi
d entity ed aneous d or ment Oth book value
value inves zed equity on at
investm income profit provisi ers
tmen using change the end
ent adjustm announ on
t the of the
ent ced
equity period
method
1. Joint venture
2. Associate
Jiangxi
Busines
s
Innovat
ive
Propert
y Joint
Stock
54,969,04 54,969,336.
Co., 294.42
2.14 56
Ltd.&S
henzhe
n
Gansha
ng Joint
Investm
ent Co.,
Ltd.
54,969,04 54,969,336.
Subtota 294.42
2.14 56
95
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
l
54,969,04 54,969,336.
Total 294.42
2.14 56
13. Investment in other equity tools
In RMB
Item Closing balance Opening balance
Unlisted equity instrument investment 11,968,973.86
Total 11,968,973.86
Sub-disclosure of non-tradable equity instrument investment in the current period
In RMB
Reason for
Amount of measurement
other at fair value
Reason for
Dividend comprehens with
transfer of other
Project name recognized in Total gain Total loss ive income variations
miscellaneous
the period transferred accounted
into income
to retained into current
earnings income
account
Shenyang Fangda 28,562,575.67
Shenzhen Huihai
Yirong Internet Service 3,779,277.52
Co., Ltd.
14. Other non-current financial assets
In RMB
Item Closing balance Opening balance
Financial assets measured at fair value
with variations accounted into current 7,515,217.28 7,507,434.68
income account
Total 7,515,217.28 7,507,434.68
15. Investment real estates
(1) Investment real estate measured at costs
Applicable □ Inapplicable
In RMB
Item Houses & buildings Total
I. Book value
1. Opening balance 17,388,824.39 17,388,824.39
2. Increase in this period
3. Decrease in this period
4. Closing balance 17,388,824.39 17,388,824.39
96
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
II. Accumulative depreciation and
amortization
1. Opening balance 7,702,419.40 7,702,419.40
2. Increase in this period 224,656.39 224,656.39
(1) Provision or amortization 224,656.39 224,656.39
3. Decrease in this period
4. Closing balance 7,927,075.79 7,927,075.79
III. Impairment provision
1. Opening balance
2. Increase in this period
3. Decrease in this period
4. Closing balance
IV. Book value
1. Closing book value 9,461,748.60 9,461,748.60
2. Opening book value 9,686,404.99 9,686,404.99
(2) Investment real estate measured at fair value
Applicable □ Inapplicable
In RMB
Item Houses & buildings Total
I. Opening balance 5,750,831,172.12 5,750,831,172.12
II. Change in this period 0.00 0.00
Add: external purchase
Less: other transfer-out 122,109.40 122,109.40
Change in fair value 122,109.40 122,109.40
III. Closing balance 5,750,831,172.12 5,750,831,172.12
16. Fixed assets
In RMB
Item Closing balance Opening balance
Fixed assets 636,359,361.87 646,812,853.36
Total 636,359,361.87 646,812,853.36
(1) Fixed assets
In RMB
Houses & Mechanical Transportation Electronics and PV power
Item Total
buildings equipment facilities other devices plants
I. Book value
1. Opening
607,215,899.93 130,812,618.16 20,276,104.91 51,941,275.99 129,596,434.84 939,842,333.83
balance
2. Increase in 1,341,577.70 2,245,168.14 252,718.76 553,624.55 4,393,089.15
97
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
this period
(1) Purchase 2,245,168.14 244,108.23 553,624.55 3,042,900.92
(2) Transfer-in
of construction 1,341,577.70 1,341,577.70
in progress
(3) Other
8,610.53 8,610.53
increases
3. Decrease in
785,123.03 312,615.00 207,052.91 1,304,790.94
this period
(1) Disposal or
785,123.03 312,615.00 207,052.91 1,304,790.94
retirement
4. Closing
608,557,477.63 132,272,663.27 20,216,208.67 52,287,847.63 129,596,434.84 942,930,632.04
balance
II.
Accumulative 0.00 2,883.60 540,740.68 40,654,236.34 41,197,860.62
depreciation
1. Opening
112,024,116.79 93,123,314.47 14,710,157.32 32,421,186.05 40,654,236.34 292,933,010.97
balance
2. Increase in
7,705,395.54 2,163,460.35 536,514.46 1,198,861.38 3,074,220.06 14,678,451.79
this period
(1) Provision 7,705,395.54 2,163,460.35 530,207.91 1,198,820.16 3,074,220.06 14,672,104.02
(2) Other
6,306.56 41.22 6,347.77
increases
3. Decrease in
705,986.38 281,353.50 149,322.21 1,136,662.09
this period
(1) Disposal or
705,986.38 281,353.50 149,322.21 1,136,662.09
retirement
4. Closing
119,729,512.33 94,580,788.44 14,965,318.28 33,470,725.22 43,728,456.40 306,474,800.67
balance
III. Impairment
provision
1. Opening
79,843.20 16,626.30 96,469.50
balance
2. Increase in
this period
3. Decrease in
this period
4. Closing
79,843.20 16,626.30 96,469.50
balance
IV. Book value
1. Closing book
488,827,965.30 37,612,031.63 5,250,890.39 18,800,496.11 85,867,978.44 636,359,361.87
value
2. Opening
495,191,783.14 37,609,460.49 5,565,947.59 19,503,463.64 88,942,198.50 646,812,853.36
book value
(2) Fixed assets without ownership certificate
In RMB
Item Book value Reason
98
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Yuehai Office Building C 502 109,384.41 Historical reasons
17. Construction in process
In RMB
Item Closing balance Opening balance
Construction in process 272,641.50
Total 272,641.50
(1) Construction in progress
In RMB
Closing balance Opening balance
Item Impairme
Remaining Remaining Impairment Book
nt Book value
book value book value provision value
provision
Fangda (Ganzhou) Low Carbon
Intelligent Manufacturing 272,641.50 272,641.50
Headquarters Base
Total 272,641.50 272,641.50
18. Use right assets
In RMB
Item Houses & buildings Transportation facilities Total
I. Book value
1. Opening balance 37,907,485.94 707,871.75 38,615,357.69
2. Increase in this period 7,581,754.91 1,348,069.46 8,929,824.37
3. Decrease in this
5,582,322.29 707,871.75 6,290,194.04
period
4. Closing balance 39,906,918.56 1,348,069.46 41,254,988.02
II. Accumulative depreciation
1. Opening balance 18,558,917.17 606,747.12 19,165,664.29
2. Increase in this period 7,043,989.57 326,658.11 7,370,647.68
(1) Provision 7,043,989.57 326,658.11 7,370,647.68
3. Decrease in this
4,145,509.01 707,871.75 4,853,380.76
period
(1) Disposal 4,145,509.01 707,871.75 4,853,380.76
4. Closing balance 21,457,397.73 225,533.48 21,682,931.21
III. Impairment provision
1. Opening balance
2. Increase in this period
3. Decrease in this
period
4. Closing balance
IV. Book value
99
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
1. Closing book value 18,449,520.83 1,122,535.98 19,572,056.81
2. Opening book value 19,348,568.77 101,124.63 19,449,693.40
Other note: The depreciation amount for the use rights assets from January to June 2023 is RMB7,370,647.68.
19. Intangible assets
(1) Intangible assets
In RMB
Unpatented
Item Land using right Patent Total
technologies
I. Book value
1. Opening balance 80,404,737.13 9,013,772.69 23,529,100.66 112,947,610.48
2. Increase in this
24,179,649.75 2,250.00 28,301.89 24,210,201.64
period
(1) Purchase 24,179,649.75 2,250.00 28,301.89 24,210,201.64
3. Decrease in this
period
4. Closing balance 104,584,386.88 9,016,022.69 23,557,402.55 137,157,812.12
II. Accumulative
amortization
1. Opening balance 19,666,143.94 8,799,771.79 11,802,250.49 40,268,166.22
2. Increase in this
1,389,426.16 64,971.56 997,587.54 2,451,985.26
period
(1) Provision 1,389,426.16 64,971.56 997,587.54 2,451,985.26
3. Decrease in this
period
4. Closing balance 21,055,570.10 8,864,743.35 12,799,838.03 42,720,151.48
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 83,528,816.78 151,279.34 10,757,564.52 94,437,660.64
2. Opening book value 60,738,593.19 214,000.90 11,726,850.17 72,679,444.26
20. Long-term amortizable expenses
In RMB
Increase in this Amortized amount
Item Opening balance Closing balance
period in this period
Sporadic decoration and 3,915,832.11 434,690.73 859,924.60 3,490,598.24
100
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
renovation costs of Fangda City
Sporadic decoration and
renovation costs of Fangda 1,069,259.56 182,780.58 886,478.98
Center
Xuanfeng Chayuan village and
Zhuyuan village land transfer 972,425.54 28,050.78 944,374.76
compensation
Reconstruction project of sample
115,713.78 57,856.80 57,856.98
room
Membership fee 704,999.96 145,000.02 559,999.94
Factory wall painting and rolling
126,403.20 22,982.40 103,420.80
shutter door engineering
Plant ground reconstruction
232,431.71 43,581.00 188,850.71
project
High voltage network access fee
487,104.91 153,822.66 333,282.25
of East China base
Management consulting service
113,569.36 32,448.36 81,121.00
fee
Warehouse addition and
90,825.75 30,275.22 60,550.53
renovation project
Others 1,916,095.13 95,284.04 550,344.58 1,461,034.59
Total 9,744,661.01 529,974.77 2,107,067.00 8,167,568.78
21. Differed income tax assets and differed income tax liabilities
(1) Non-deducted deferred income tax assets
In RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment
322,430,180.61 59,250,112.15 295,671,508.97 54,047,399.06
provision
Unrealized profit of
401,088,842.35 84,107,333.49
internal transactions 394,667,372.22 83,176,747.29
Deductible loss 173,556,570.33 34,939,379.79 160,102,622.27 32,419,194.27
Credit impairment
218,301,555.44 33,956,712.23 249,948,173.84 39,913,829.96
provision
Anticipated liabilities 5,518,214.79 827,732.22 3,372,553.84 505,883.08
Deferred earning 3,511,556.86 543,157.44 3,610,875.25 558,241.49
Change in fair value 6,578,309.27 990,583.24 5,433,747.37 815,062.11
Tax differences under
386,406.38 43,400.05 1,316,989.65 195,214.63
new lease criteria
Accrued and unpaid
20,300,503.81 5,075,125.96 20,133,488.43 5,033,372.11
land tax
Reserved expense 30,496,974.99 4,542,330.07 22,640,219.20 3,396,032.88
Total 1,182,169,114.83 224,275,866.64 1,156,897,551.04 220,060,976.88
(2) Non-deducted deferred income tax liabilities
In RMB
Item Closing balance Opening balance
101
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
Change in fair value 4,186,741,285.94 1,046,677,562.89 4,188,015,507.12 1,046,924,956.27
Acquire premium to form
1,535,605.48 383,901.37 1,535,605.47 383,901.37
inventory
Estimated gross margin
when Fangda City records
23,383,161.34 5,845,790.33 38,783,686.70 9,695,921.68
income, but does not reach
the taxable income level
Rental income 30,472,339.02 7,618,084.76 32,671,966.71 8,167,991.68
Total 4,242,132,391.78 1,060,525,339.35 4,261,006,766.00 1,065,172,771.00
(3) Net deferred income tax assets or liabilities listed
In RMB
Offset balance of Deferred income tax Offset balance of
Deferred income tax
deferred income tax assets and liabilities at deferred income tax
Item assets and liabilities at
assets or liabilities after the beginning of the assets or liabilities after
the end of the period
offsetting period offsetting
Deferred income tax
224,275,866.64 220,060,976.88
assets
Deferred income tax
1,060,525,339.35 1,065,172,771.00
liabilities
(4) Details of unrecognized deferred income tax assets
In RMB
Item Closing balance Opening balance
Deductible temporary difference 330,995.20 146,089.64
Deductible loss 18,653,471.92 16,177,447.74
Total 18,984,467.12 16,323,537.38
(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
2023 4,575,983.46 4,575,983.46
2024 1,276,235.76 1,276,235.76
2025 213,129.83 213,129.83
2026 2,355,213.17 2,355,213.17
2027 7,756,885.52 7,756,885.52
2028 2,476,024.18
Total 18,653,471.92 16,177,447.74
22. Other non-current assets
In RMB
Closing balance Opening balance
Item
Remaining Impairment Book value Remaining Impairment Book value
102
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
book value provision book value provision
Contract assets 97,421,283.71 5,282,135.78 92,139,147.93 105,183,978.15 5,709,693.38 99,474,284.77
Prepaid house
and equipment 73,077,190.00 73,077,190.00
amount 94,025,341.55 94,025,341.55
Certificate of
316,929,580.18 316,929,580.18
deposit
Others 2,004,000.00 2,004,000.00 2,005,361.70 2,005,361.70
Total 193,450,625.26 5,282,135.78 188,168,489.48 497,196,110.03 5,709,693.38 491,486,416.65
23. Short-term borrowings
(1) Classification of short-term borrowings
In RMB
Item Closing balance Opening balance
Guarantee loan 179,944,444.40 120,136,861.08
Credit borrow 300,050,833.33 300,247,500.00
Bank acceptance bill financing loan 773,500,000.00 797,889,951.95
Other financing loans 242,277,417.06 59,903,587.53
Guarantee and pledge loan 80,110,222.22 40,060,622.22
Total 1,575,882,917.01 1,318,238,522.78
24. Derivative financial liabilities
In RMB
Item Closing balance Opening balance
Futures contracts 1,439,675.00 293,400.00
Total 1,439,675.00 293,400.00
25. Notes payable
In RMB
Type Closing balance Opening balance
Commercial acceptance 15,736,648.36 44,531,921.12
Bank acceptance 746,053,195.97 690,358,287.44
Total 761,789,844.33 734,890,208.56
26. Account payable
(1) Account payable
In RMB
Item Closing balance Opening balance
Account repayable and engineering
1,259,574,096.29
repayable 1,183,404,419.50
Construction payable 25,890,280.89 44,523,769.88
103
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Payable installation and implementation
457,309,209.28 394,228,364.88
fees
Others 21,024,755.43 19,710,144.73
Total 1,687,628,665.10 1,718,036,375.78
(2) Significant payables aging more than 1 year
In RMB
Item Closing balance Reason
Supplier 1 26,934,513.76 Not mature
Total 26,934,513.76
27. Prepayment received
(1) Prepayment received
In RMB
Item Closing balance Opening balance
Rental 2,640,045.93 1,439,653.84
Total 2,640,045.93 1,439,653.84
28. Contract liabilities
In RMB
Item Closing balance Opening balance
Project funds collected in advance 107,103,236.39 194,354,649.37
Material loan 3,468,658.36 12,114,464.00
Real estate sales payment 586,105.50
Others 484,363.39 938,452.68
Total 111,056,258.14 207,993,671.55
The amount and reason for the significant change in the book value during the reporting period
In RMB
Item Change Reason
Project funds collected Mainly due to the gradual performance of engineering contract
-87,251,412.98
in advance and its conversion into income
Total -87,251,412.98 ——
29. Employees' wage payable
(1) Employees' wage payable
In RMB
Item Opening balance Increase Decrease Closing balance
1. Short-term remuneration 66,789,434.45 194,725,235.15 225,231,077.98 36,283,591.62
2. Retirement pension program-
314,429.46 10,879,267.13 10,911,206.94 282,489.65
defined contribution plan
3. Dismiss compensation 47,000.00 909,479.06 883,246.06 73,233.00
104
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Total 67,150,863.91 206,513,981.34 237,025,530.98 36,639,314.27
(2) Short-term remuneration
In RMB
Item Opening balance Increase Decrease Closing balance
1. Wage, bonus, allowance and
64,995,965.84 179,466,479.40 209,463,601.45 34,998,843.79
subsidies
2. Employee welfare 475,904.12 5,132,401.54 5,522,948.92 85,356.74
3. Social insurance 332,303.60 4,793,845.56 4,998,340.12 127,809.04
Including: medical insurance 279,363.18 3,892,157.44 4,065,915.45 105,605.17
Labor injury insurance 6,383.71 302,729.85 304,900.67 4,212.89
Breeding insurance 46,556.71 471,206.27 499,772.00 17,990.98
Medical insurance 127,752.00 127,752.00
4. Housing fund 105,608.96 4,602,759.10 4,505,425.09 202,942.97
5. Labor union budget and staff
544,359.10 478,360.69 479,644.86 543,074.93
education fund
6. Short-term paid leave 335,292.83 9,728.68 325,564.15
7. Short-term profit share
251,388.86 251,388.86
program
Total 66,789,434.45 194,725,235.15 225,231,077.98 36,283,591.62
(3) Defined contribution plan
In RMB
Item Opening balance Increase Decrease Closing balance
1. Basic pension 306,672.38 10,521,088.20 10,551,938.71 275,821.87
2. Unemployment
7,757.08 358,178.93 359,268.23 6,667.78
insurance
Total 314,429.46 10,879,267.13 10,911,206.94 282,489.65
30. Taxes payable
In RMB
Item Closing balance Opening balance
VAT 7,088,922.68 14,657,864.98
Enterprise income tax 18,340,655.14 28,092,096.58
Personal income tax 1,224,280.65 1,663,123.30
City maintenance and construction tax 1,346,649.54 1,651,960.05
Land using tax 495,167.14 256,490.15
Property tax 8,315,881.79 1,072,014.83
Education surtax 665,251.02 805,376.76
Local education surtax 304,777.82 397,447.79
Land VAT 21,453,843.28 36,201,588.58
Others 515,738.43 1,029,368.07
105
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Total 59,751,167.49 85,827,331.09
31. Other payables
In RMB
Item Closing balance Opening balance
Other payables 109,992,243.02 113,425,377.70
Total 109,992,243.02 113,425,377.70
(1) Other payables
1) Other payables presented by nature
In RMB
Item Closing balance Opening balance
Performance and quality deposit 46,288,865.35 44,484,884.33
Deposit 26,948,685.34 19,901,002.35
Reserved expense 3,666,345.98 5,871,887.95
Others 33,088,346.35 43,167,603.07
Total 109,992,243.02 113,425,377.70
(2) Significant payables aging more than 1 year
In RMB
Item Closing balance Reason
Shenzhen Yikang Real Estate Co. Ltd. 26,044,709.60 Payment paid as agreed in the contract
Total 26,044,709.60
32. Non-current liabilities due within 1 year
In RMB
Item Closing balance Opening balance
Long-term loans due within 1 year 107,165,815.07 72,037,200.00
Lease liabilities due within one year 11,699,224.35 11,741,447.06
Total 118,865,039.42 83,778,647.06
33. Other current liabilities
In RMB
Item Closing balance Opening balance
Unterminated notes receivable 27,805,230.54 20,093,677.84
Substituted money on VAT 22,884,762.30 28,039,520.65
Total 50,689,992.84 48,133,198.49
106
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
34. Long-term borrowings
(1) Classification of long-term borrowings
In RMB
Item Closing balance Opening balance
Guaranteed and mortgage loans 429,596,438.36 444,204,672.22
Guarantee, mortgage and pledge loan 870,569,376.71 891,332,527.78
Less: Long-term loans due within 1 year 107,165,815.07 72,037,200.00
Total 1,193,000,000.00 1,263,500,000.00
Notes to classification of long-term borrowings:
The pledge in the above-mentioned guarantee, mortgage and pledge loans is pledged by the 99% equity of the subsidiary Fangda
Real Estate held by the Company, the 1% equity of the subsidiary Fangda Real Estate held by the subsidiary Hongjun Investment
Company and the rent receivable of the self-owned Dacheng rental property; The above guarantees and mortgage loans are
guaranteed by the Company and its subsidiary Fangda Real Estate, and the subsidiary Fangda Property Company provides
mortgage guarantees for part of the property of Fangda Property Company in Dacheng.
Other notes, including interest rate range: the interest rate period of long-term loans is 3%-6%.
35. Lease liabilities
In RMB
Item Closing balance Opening balance
Lease payments 21,009,104.91 19,363,493.20
Less: unrecognized financing expenses 756,761.56 714,589.59
Less: lease liabilities due within one year 11,699,224.35 11,741,447.06
Total 8,553,119.00 6,907,456.55
36. Long-term payables
In RMB
Item Closing balance Opening balance
Long-term payable 204,640,219.18 197,640,219.18
Total 204,640,219.18 197,640,219.18
(1) Long term accounts payable listed by nature
In RMB
Item Closing balance Opening balance
Disposal of equity repurchase 204,640,219.18 197,640,219.18
37. Anticipated liabilities
In RMB
107
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Item Closing balance Opening balance Reason
Product quality warranty 5,263,801.13 3,108,521.87
Loss contract to be executed 256,318.42 264,031.97
Total 5,520,119.55 3,372,553.84
38. Deferred earning
In RMB
Item Opening balance Increase Decrease Closing balance Reason
Government See the following
8,999,880.44 283,322.58 8,716,557.86
subsidy table
Total 8,999,880.44 283,322.58 8,716,557.86
Items involving government subsidies:
In RMB
Amount
Amount included Other misc. Costs offset Other
Related to
Liabilities Opening balance of new in non- gains recorded in the chang Closing balance
assets/earning
subsidy operating in this period period e
revenue
Railway transport
screen door
controlling system
20,940.89 9,452.16 11,488.73 Assets-related
and information
transmission
technology
Major investment
project prize from
Industry and Trade
Development 1,452,381.50 28,571.40 1,423,810.10 Assets-related
Division of
Dongguan Finance
Bureau
Distributed PV
power generation
project subsidy
sponsored by 318,750.29 12,499.98 306,250.31 Assets-related
Dongguan Reform
and Development
Commission
Subsidized land
166,101.95 1,862.82 164,239.13 Assets-related
transfer
Special subsidy for
industrial
transformation, 686,666.61 40,000.02 646,666.59 Assets-related
upgrading and
development
Enterprise
informationization
subsidy project of
324,000.00 24,000.00 300,000.00 Assets-related
Shenzhen Small
and Medium
Enterprise Service
108
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Agency
National Industry
Revitalization and
Technology 5,070,254.90 153,864.30 4,916,390.60 Assets-related
Renovation Project
fund
Subsidy for new
960,784.30 13,071.90 947,712.40 Assets-related
plant
Total 8,999,880.44 283,322.58 8,716,557.86
39. Capital share
In RMB
Change (+,-)
Opening balance Issued Closing balance
Bonus Transferred Subto
new Others
shares from reserves tal
shares
Total of
1,073,874,227.00 1,073,874,227.00
capital shares
40. Capital reserve
In RMB
Item Opening balance Increase Decrease Closing balance
Capital premium (share
10,005,491.05 10,005,491.05
capital premium)
Other capital reserves 1,454,097.35 1,454,097.35
Total 11,459,588.40 11,459,588.40
41. Other miscellaneous income
In RMB
Amount occurred in the current period
Less: Less:
amount amount
written into written into After-tax
After-tax
Opening other gains other gains amount Closing
Item Amount Less: amount
balance and and attributed balance
before Income tax attributed
transferred transferred to minority
income tax expenses to the
into into shareholder
parent
gain/loss in gain/loss in s
previous previous
terms terms
I. Other
comprehen
sive
income that - - - - -
will not be 16,224,478. 11,968,973. 2,992,243.4 8,976,730.3 25,201,209.
subsequentl 87 86 7 9 26
y
reclassified
into profit
109
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
and loss
Fair
value
- - - - -
change of
16,224,478. 11,968,973. 2,992,243.4 8,976,730.3 25,201,209.
investment
87 86 6 9 26
in other
equity tools
2. Other
misc.
incomes
- -
that will be 48,211,195. - 47,084,882.
1,209,307.8 185,133.87 1,126,313.5 10,555.92
re- 66 278,684.13 15
4 1
classified
into gain
and loss
Cash - - -
-
flow hedge 448,562.20 1,672,760.3 185,133.87 1,579,210.0 1,130,647.8
278,684.13
reserve 0 4 4
Transl
ation
difference -
463,452.46 452,896.53 10,555.92 300,035.49
of foreign 152,861.04
exchange
statement
Investm
ent real
estate 47,915,494. 47,915,494.
measured 50 50
at fair
value
Other - - -
31,986,716. 21,883,672.
miscellane 13,178,281. 185,133.87 3,270,927.6 10,103,043. 10,555.92
79 89
ous income 70 0 90
42. Surplus reserves
In RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
79,324,940.43 79,324,940.43
reserves
Total 79,324,940.43 79,324,940.43
43. Retained profit
In RMB
Item Current period Last period
Adjustment on retained profit of previous period 4,553,295,402.30 4,324,055,259.33
Total of retained profit at beginning of year adjusted
(+ for increase, - for decrease)
Retained profit adjusted at beginning of year 4,553,295,402.30 4,324,055,259.33
Plus: Net profit attributable to owners of the parent 182,155,268.18 112,685,273.77
110
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Common share dividend payable 53,693,711.35 53,693,711.35
Closing retained profit 4,681,756,959.13 4,383,046,821.75
44. Operational revenue and costs
In RMB
Amount occurred in the current period Occurred in previous period
Item
Income Cost Income Cost
Main business 1,994,095,251.72 1,613,648,910.68 1,523,656,283.61 1,238,697,976.76
Other businesses 84,751,625.60 10,581,557.95 89,407,031.69 20,817,865.84
Total 2,078,846,877.32 1,624,230,468.63 1,613,063,315.30 1,259,515,842.60
Income information:
In RMB
Segment 3 -
Contract Segment 1- Segment 2 - rail Segment 4 - Segment 5 -
real estate Total
classification curtain wall transit division new energy other segments
segment
1,654,849,166. 2,078,846,877.
Type of product 291,615,462.85 115,913,190.77 8,947,285.78 7,521,771.30
62 32
Including:
Curtain wall
1,654,849,166. 1,654,849,166.
system and new
62 62
materials
Subway screen
door and 291,615,462.85 291,615,462.85
service
Real estate
rental and sales
115,913,190.77 115,913,190.77
and property
services
PV power
generation 8,947,285.78 8,947,285.78
products
Others 7,521,771.30 7,521,771.30
1,654,849,166. 2,078,846,877.
Total 291,615,462.85 115,913,190.77 8,947,285.78 7,521,771.30
62 32
Information related to performance obligations:
For curtain wall materials, real estate and other commodity sales transactions, the Company completes the performance obligations
when the customer obtains the control of the relevant commodities; for providing building curtain wall, Metro screen door design,
production and installation and other service transactions, the Company confirms the completed performance obligations
according to the performance progress during the whole service period. The contract price of the Company is usually due within
one year, and there is no significant financing component.
Information related to the transaction price allocated to the remaining performance obligations:
The amount of revenue corresponding to the performance obligations that have been signed, but not yet performed or not yet
performed at the end of the reporting period is RMB7,808,210,644.67, of which RMB2,330,231,497.17 is expected to be
recognized in 2023 H2, and RMB3,451,005,032.62 is expected to be recognized in 2024, RMB2,026,974,114.88 is expected to be
recognized in 2025 and beyond.
111
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
45. Taxes and surcharges
In RMB
Item Amount occurred in the current period Occurred in previous period
City maintenance and construction tax 4,446,267.60 2,999,118.26
Education surtax 2,918,968.56 1,950,119.60
Property tax 9,523,215.93 6,877,755.11
Land using tax 888,300.59 661,851.40
Vehicle usage tax 10,290.00 14,640.00
Stamp tax 1,554,773.97 941,023.02
Land VAT 2,802,673.55 9,521,953.79
Others 359,251.36 237,493.38
Total 22,503,741.56 23,203,954.56
46. Sales expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 13,183,424.46 11,286,857.24
Sales agency fee 1,773,126.99 2,383,695.88
Entertainment expense 2,554,127.30 1,534,727.49
Travel expense 1,390,759.29 440,012.56
Advertisement and promotion fee 830,068.74 589,409.30
Amortization of right of use assets and
83,983.81 462,611.74
lease fees
Others 8,328,066.20 6,598,791.57
Total 28,143,556.79 23,296,105.78
47. Management expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 51,557,093.96 51,258,947.78
Agencies 3,942,772.45 2,977,450.48
Depreciation and amortization 7,282,563.56 6,784,107.02
Office expense 5,141,931.61 4,110,000.28
Entertainment expense 2,551,085.91 2,079,903.87
Amortization of right of use assets and
1,904,893.13 2,678,867.12
lease fees
Lawsuit 2,954,790.97 239,447.70
Travel expense 1,575,151.34 846,221.42
Others 2,680,658.53 3,218,305.90
Total 79,590,941.46 74,193,251.57
48. R&D cost
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 48,716,037.44 43,761,777.28
112
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Material costs 29,157,592.26 22,539,028.06
Agencies 4,191,108.26 4,002,025.54
Depreciation costs 999,888.33 530,096.72
Amortization of intangible assets 497,817.82 495,249.97
Others 5,427,066.55 1,481,133.60
Total 88,989,510.66 72,809,311.17
49. Financial expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Interest expense 48,188,161.19 50,244,714.46
Less: interest capitalization
Less: discount government subsidies 308,700.00 308,700.00
Less: Interest income 12,097,319.82 19,918,179.96
Acceptant discount 7,888,113.87 11,494,770.87
Exchange gain/loss -11,140,562.06 -3,678,984.41
Commission charges and others 1,214,164.61 1,796,161.92
Total 33,743,857.79 39,629,782.88
50. Other gains
In RMB
Amount occurred in the current
Source Occurred in previous period
period
Government subsidies related to deferred income
283,322.58 283,322.58
(related to assets)
Government subsidies directly included in current
7,695,968.32 5,945,520.73
profits and losses (related to income)
Other items related to daily activities and included in
584,491.42 540,064.44
other income
Total 8,563,782.32 6,768,907.75
51. Investment income
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Gains from long-term equity investment measured
294.42 -32,974.15
by equity
Financial assets derecognised as a result of
-2,362,127.61 -1,859,057.85
amortized cost
Investment income from disposal of trading
2,382,310.79
financial assets
Interest income from debt investment during the
3,454,345.45
holding period
Others 651,054.19
Total -2,361,833.19 4,595,678.43
113
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
52. Income from fair value fluctuation
In RMB
Source of income from fluctuation of fair
Amount occurred in the current period Occurred in previous period
value
Investment real estate measured at fair
122,109.40 1,068,328.60
value
Other non-current financial assets 7,782.60 -20,657.41
Transactional financial assets 133,168.82
Total 129,892.00 1,180,840.01
53. Credit impairment loss
In RMB
Item Amount occurred in the current period Occurred in previous period
Bad debt loss of other receivables -716,812.51 -1,581,252.49
Bad debt loss of accounts receivable and
20,991,390.10 26,597,550.83
notes receivable
Total 20,274,577.59 25,016,298.34
54. Assets impairment loss
In RMB
Item Amount occurred in the current period Occurred in previous period
Contract asset impairment loss -14,673,904.92 -27,659,612.75
Total -14,673,904.92 -27,659,612.75
55. Assets disposal gains
In RMB
Amount occurred in the current
Source Occurred in previous period
period
Gain and loss from disposal of fixed assets ("-"
50,072.23 -815,581.50
for loss)
Gains or losses from the disposal of right-of-
323,279.85
use assets
Total 373,352.08 -815,581.50
56. Non-business income
In RMB
Amount occurred in the Occurred in previous Amount accounted into the
Item
current period period current accidental gain/loss
Penalty income 106,311.57 122,506.66 106,311.57
Compensation received 39,036.80 4,887.00 39,036.80
Payable account not able to
115,354.80
be paid
Others 58,698.17 203,638.36 58,698.17
Total 204,046.54 446,386.82 204,046.54
114
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
57. Non-business expenses
In RMB
Amount occurred in the Occurred in previous Amount accounted into the
Item
current period period current accidental gain/loss
Donation 217,861.40 2,338,000.00 217,861.40
Loss from retirement os
23,473.88 159,921.17 23,473.88
damaged non-current assets
Penalty and overdue fine 43,356.01 79,324.94 43,356.01
Lawsuit indemnity 53,158.01 53,158.01
Others 232,013.29 755.20 232,013.29
Total 569,862.59 2,578,001.31 569,862.59
58. Income tax expenses
(1) Details about income tax expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Income tax expenses in this period 33,781,299.25 24,417,052.77
Deferred income tax expenses -5,591,393.81 -11,411,931.03
Total 28,189,905.44 13,005,121.74
(2) Adjustment process of accounting profit and income tax expense
In RMB
Item Amount occurred in the current period
Total profit 213,584,850.26
Income tax expenses calculated based on the legal (or applicable) tax rates 53,396,212.56
Impacts of different tax rates applicable for some subsidiaries -18,251,152.56
Impacts of income tax before adjustment 4,357,682.86
Impacts of non-deductible cost, expense and loss 1,408,844.29
Deductible temporary difference and deductible loss of unrecognized deferred
417,447.30
income tax assets
Profit and loss of associates and joint ventures calculated using the equity
-73.61
method
Impact of tax rate change on the opening balance of deferred income tax -200.45
Taxation impact of R&D expense and (presented with "-”) -13,138,854.97
Income tax expenses 28,189,905.44
59. Other miscellaneous income
See Note VII 41.
115
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
60. Notes to the cash flow statement
(1) Other cash inflow related to operation
In RMB
Item Amount occurred in the current period Occurred in previous period
Interest income 4,863,151.74 1,798,697.05
Subsidy income 6,530,882.67 3,443,499.94
Retrieving of bidding deposits 20,253,140.27 28,957,397.39
Other operating accounts 11,800,747.12 67,415,733.82
Total 43,447,921.80 101,615,328.20
(2) Other cash paid related to operation
In RMB
Item Amount occurred in the current period Occurred in previous period
Oocket expenses 25,234,094.43 18,401,123.38
Bidding deposit paid 17,035,960.19 39,026,573.21
Net draft deposit net paid 199,180,751.42 181,744,397.40
Other trades 23,008,888.00 54,833,967.58
Total 264,459,694.04 294,006,061.57
(3) Other cash paid related to financing activities
In RMB
Item Amount occurred in the current period Occurred in previous period
Bill discount financing deposit 60,589,831.95 604,311,403.85
Principal and interest of lease liabilities 8,096,984.15 5,285,394.85
Total 68,686,816.10 609,596,798.70
61. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB
Amount of the Previous
Supplementary information Amount of the Current Term
Term
1. Net profit adjusted to cash flow related to business operations:
Net profit 185,394,944.82 114,364,860.80
Plus: Asset impairment provision -5,600,672.67 2,643,314.41
Fixed asset depreciation, gas and petrol depreciation,
14,896,760.41 15,224,319.96
production goods depreciation
Depreciation of right to use assets 7,370,647.68 6,615,143.02
Amortization of intangible assets 2,451,985.26 2,228,550.37
Amortization of long-term amortizable expenses 2,107,067.00 1,578,076.52
Loss from disposal of fixed assets, intangible assets, and
-373,352.08 815,581.50
other long-term assets ("-" for gains)
Loss from fixed asset discard ("-" for gains) 23,473.88 159,921.17
116
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Loss from fair value fluctuation ("-" for gains) -129,892.00 -1,180,840.01
Financial expenses ("-" for gains) 56,076,275.06 61,739,485.33
Investment losses ("-" for gains) -294.42 -6,454,736.28
Decrease of deferred income tax asset ("-" for increase) -4,214,889.76 -8,571,096.06
Increase of deferred income tax asset ("-" for increase) -4,647,431.65 -3,012,044.14
Decrease of inventory ("-" for increase) 34,523,652.33 14,668,390.43
Decrease of operational receivable items ("-" for increase) -149,791,569.44 -293,658,104.04
Increase of operational receivable items ("-" for decrease) -154,844,906.67 -177,019,400.45
Others -20,555,508.88 -36,722,215.57
Cash flow generated by business operations, net -37,313,711.13 -306,580,793.04
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 748,672,706.05 593,918,013.39
Less: Initial balance of cash 783,677,929.06 892,251,071.59
Add: Ending balance of cash equivalents
Less: Ending balance of cash equivalents
Net increase in cash and cash equivalents -35,005,223.01 -298,333,058.20
(2) Composition of cash and cash equivalents
In RMB
Item Closing balance Opening balance
I. Cash 748,672,706.05 783,677,929.06
Including: Cash in stock 5,350.98 149.81
Bank savings can be used at any time 742,322,526.29 776,383,701.29
Other monetary capital can be used at any
6,344,828.78 7,294,077.96
time
2. Cash equivalents
III. Balance of cash and cash equivalents at end
748,672,706.05 783,677,929.06
of term
62. Assets with restricted ownership or use rights
In RMB
Item Closing book value Reason
Monetary capital 537,833,587.91 Various deposits
Notes receivable 27,805,230.54 Bills endorsed or discounted but not yet due
Fixed assets 43,896,677.62 Loan by pledge
Account receivable 39,547,042.05 Loan by pledge
Investment real estate 3,293,733,474.51 Loan by pledge
Non-current assets due in 1 year 321,983,047.30 Loan by pledge
117
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
100% stake in Fangda Property Development
Equity pledge 200,000,000.00
held by the Company
Total 4,464,799,059.93
63. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Closing foreign currency
Item Exchange rate Closing RMB balance
balance
Monetary capital 54,038,995.75
Including: USD 4,889,797.02 7.225800 35,332,693.85
Euro 0.86 7.877100 6.77
HK Dollar 5,873,247.95 0.921980 5,415,021.91
INR 52,090,006.86 0.088025 4,585,222.85
Vietnamese currency 12,313,820.00 0.000307 3,774.78
SGD 438,636.43 5.344200 2,344,160.81
AUD 1,324,828.05 4.799200 6,358,114.78
Account receivable 25,680,970.40
Including: USD 2,318,655.02 7.225800 16,754,137.44
INR 7,058,471.00 0.088025 621,321.91
AUD 1,251,541.83 4.799200 6,006,399.55
Vietnamese currency 7,500,000,000.00 0.000307 2,299,111.50
Contract assets 189,210,828.74
Including: USD 17,057,897.01 7.225800 123,256,952.22
HK Dollar 20,511,073.82 0.921980 18,910,799.84
INR 97,365,653.65 0.088025 8,570,611.66
AUD 280,781.11 4.799200 1,347,524.70
Euro 4,713,021.33 7.877100 37,124,940.32
Other receivables 1,869,208.96
Including: USD 160,310.49 7.225800 1,158,371.54
HK Dollar 671,784.63 0.921980 619,372.00
INR 931,430.68 0.088025 81,989.19
SGD 1,773.18 5.344200 9,476.23
Account payable 14,941,711.05
Including: USD 1,223,641.16 7.225800 8,841,786.29
INR 22,669,594.77 0.088025 1,995,491.08
HK Dollar 4,451,760.00 0.921980 4,104,433.68
Other payables 152,810.55
Including: USD 3,323.20 7.225800 24,012.78
HK Dollar 124,855.10 0.921980 115,113.91
Vietnamese currency 44,638,518.52 0.000307 13,683.86
(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
118
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
64. Hedging
Hedging items and related tools, qualitative and quantitative information about hedging risks:
Type Hedged item Hedging tools Hedged risk
Aluminum material Aluminum
The price of raw materials has risen, leading to an
purchase forward futures
increase in expected transaction procurement costs;
Cash flow transaction contract
hedging Forward foreign
Forward foreign The depreciation of foreign currency leads to the decrease
exchange
exchange transaction of actual collection
contract
65. Government subsidy
(1) Government subsidy profiles
In RMB
Amount accounted into
Type Amount Item the current gain/loss
National Industry Revitalization and Technology
Renovation Project fund 4,916,390.60 Deferred earning 153,864.30
Individual champion allocation from Shenzhen
Municipal Bureau of Industry and Information
Technology 2,000,000.00 Other gains 2,000,000.00
Value added tax immediate refund 1,699,093.53 Other gains 1,699,093.53
R&D subsidy 1,326,100.00 Other gains 1,326,100.00
Major investment project prize from Industry and
Trade Development Division of Dongguan
Finance Bureau 1,423,810.10 Deferred earning 28,571.40
Award for stable growth of the construction
industry in 2022 1,000,000.00 Other gains 1,000,000.00
Energy saving and environmental protection
metal curtain wall production technology
transformation project 947,712.40 Deferred earning 13,071.90
Special subsidy for industrial transformation,
upgrading and development 646,666.59 Deferred earning 40,000.02
Hi-tech enterprise development subsidy and
award 500,000.00 Other gains 500,000.00
Support for steady industrial growth in Shenzhen 385,000.00 Other gains 385,000.00
Discount subsidy 308,700.00 Financial expenses 308,700.00
Enterprise informationization subsidy project of
Shenzhen Small and Medium Enterprise Service
Agency 300,000.00 Deferred earning 24,000.00
Shenzhen SME Service Bureau subsidy for
specialized, refined, and emerging companies 200,000.00 Other gains 200,000.00
Outstanding contribution award of Nanchang
high tech zone 200,000.00 Other gains 200,000.00
Shenzhen Municipal Bureau of Industry and
Information technology award project for
specialized, refined, and new enterprises 200,000.00 Other gains 200,000.00
Other gains/deferred
Others 211,626.32 gains 209,589.75
Total 16,265,099.54 8,287,990.90
(2) Government subsidy refund
□ Applicable Inapplicable
119
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
66. Others
(1) The Company as leasee
In RMB
Item January-June 2023
Short term lease expenses with simplified treatment included in current profit and loss 23,422,339.52
Lease expenses of low value assets with simplified treatment included in current profit
100,689.29
and loss (except short-term lease)
Interest expense on lease liabilities 465,093.28
Total cash outflow related to leasing 31,647,316.58
(2) The Company is the leasor
Operating lease
A. Rental income
In RMB
Item January-June 2023
Rental income 73,425,170.71
Including: income related to variable lease payments not included in the
190,599.66
measurement of lease receipts
B. Undiscounted lease receipts to be received in each of the five consecutive fiscal years after the balance sheet date, and
the total undiscounted lease receipts to be received in the remaining years
In RMB
Year Amount
2023 H2 78,862,199.38
2024 117,426,562.03
2025 97,198,392.07
2026 75,678,364.35
2027 46,399,602.29
2028 30,285,852.66
Total undiscounted lease receipts to be received after 2028 93,380,127.88
120
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Including Within 1 year (inclusive) 18,574,513.57
1-2 years 12,835,912.30
2-3 years 9,976,941.56
Over 3 years 51,992,760.45
VIII. Change to Consolidation Scope
1. Change to the consolidation scope for other reasons
Change in the consolidation scope due to other reasons (such as new subsidiaries and liquidation of subsidiaries) and the situations:
There has been no change in the scope of consolidation in this period.
IX. Equity in Other Entities
1. Interests in subsidiaries
(1) Group Composition
Shareholding
Place of Registered percentage Obtaining
Company Business
business address method
Direct Indirect
Designing, manufacturing, and Incorporatio
Fangda Jianke Shenzhen Shenzhen 98.66% 1.34%
installation of curtain walls n
Production, processing and
Fangda Zhiyuan Incorporatio
Shenzhen Shenzhen installation of subway screen 83.10%
Technology n
doors
Prodution and sales of new-type
Fangda Jiangxi New Incorporatio
Nanchang Nanchang materialsm composite materials 75.00% 25.00%
Material n
and production of curtain walls
Real estate development and Incorporatio
Fangda Property Shenzhen Shenzhen 99.00% 1.00%
operation n
Design and construction of PV Incorporatio
Fangda New Energy Shenzhen Shenzhen 99.00% 1.00%
power plants n
Fangda Chengdu Trusted processing of building 100.00 Incorporatio
Chengdu Chengdu
Technology curtain wall materials % n
Virgin Virgin 100.00 Incorporatio
Shihui International Investment
Islands Islands % n
Fangda Dongguan Installation and sales of building 100.00 Incorporatio
Dongguan Dongguan
New Material curtain walls % n
Fangda Property 100.00 Incorporatio
Shenzhen Shenzhen Property management
Management % n
Fangda Jiangxi
Real estate development and 100.00 Incorporatio
Property Nanchang Nanchang
operation % n
Development
Fangda Luxin New Design and construction of PV 100.00 Incorporatio
Pingxiang Pingxiang
Energy power plants % n
Fangda Xinjian New Design and construction of PV 100.00 Incorporatio
Nanchang Nanchang
Energy power plants % n
Fangda Dongguan Design and construction of PV 100.00 Incorporatio
Dongguan Dongguan
New Energy power plants % n
121
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Kechuangyuan Incorporatio
Shenzhen Shenzhen Software development 83.10%
Software n
Fangda Zhiyuan
Incorporatio
Technology Hong Hong Kong Hong Kong Metro screen door 83.10%
n
Kong
Fangda Hongjun Incorporatio
Shenzhen Shenzhen Investment 98.00% 2.00%
Investment n
Designing, manufacturing, and 100.00 Incorporatio
Fangda Australia Australia Australia
installation of curtain walls % n
Technology development and
sales; Invest in industry; 100.00 Incorporatio
Fangda Yunzhi Shenzhen Shenzhen
Operation management of % n
science and technology park
Chengda Curtain Building decoration and other 100.00 Incorporatio
Chengdu Chengdu
Wall Company construction industry % n
Fangda Southeast Designing, manufacturing, and 100.00 Incorporatio
Vietnam Vietnam
Asia installation of curtain walls % n
Fangda Shanghai Intelligent technology, new Incorporatio
Shanghai Shanghai 30.00% 70.00%
Zhijian energy, automated technology n
Construction technology,
intelligent technology,
Fangda Shanghai 100.00 Incorporatio
Shanghai Shanghai automation technology, design,
Jianzhi % n
production and installation of
building curtain walls
Zhongrong Litai Shenzhen Shenzhen Business service 55.00% Purchase
Project investment and Incorporatio
Fangda Investment Shenzhen Shenzhen 99.00% 0.52%
investment consultancy n
Fangda Lifu Project investment and Incorporatio
Shenzhen Shenzhen 52.00%
Investment investment consultancy n
Fangda Xunfu Project investment and 100.00 Incorporatio
Shenzhen Shenzhen
Investment investment consultancy % n
Fangda Jianke Hong Design, sale and installation of 100.00 Incorporatio
Hong Kong Hong Kong
Kong building curtain wall % n
Consolidatio
Inspection, technical service and
n of entities
consultation of building safety 100.00
Yunzhu Technology Shenzhen Shenzhen under
and building energy saving %
common
system
control
Consolidatio
Inspection, technical service and
n of entities
Fangda Yunzhu consultation of building safety 100.00
Shenzhen Shenzhen under
Testing and building energy saving %
common
system
control
Production, processing and
General Metro Incorporatio
Singapore Singapore installation of subway screen 83.10%
Technology Co., Ltd n
doors
Production, processing and
Fangda Zhiyuan Incorporatio
Wuhan Wuhan installation of subway screen 83.10%
Technology Wuhan n
doors
Fangda Zhiyuan Production, processing and
Incorporatio
Technology Nanchang Nanchang installation of subway screen 83.10%
n
Nanchang doors
Fangda Zhiyuan Production, processing and
Incorporatio
Technology Dongguan Dongguan installation of subway screen 83.10%
n
Dongguan doors
Fangda Intelligent Prodution and sales of new-type Incorporatio
Ganzhou Ganzhou 99.00% 1.00%
Manufacturing materialsm composite materials n
122
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
and production of curtain walls
(2) Major non wholly-owned subsidiaries
In RMB
Shareholding of Dividend to be Interest balance of
Profit and loss attributed
Company minority distributed to minority minority shareholders in
to minority shareholders
shareholders shareholders the end of the period
Zhongrong Litai 45.00% -34,438.52 48,320,086.70
Fangda Zhiyuan
5.96% 3,274,458.52 24,148,372.78
Technology
Note: In May 2021l the Company's subsidiaries Fangda Construction Technology Co., Ltd. and Jiangxi Fangda New Material Co.,
Ltd. transfer 10.9375% of the equity of Fangda Zhiyuan Technology Co., Ltd. because the Company cannot unconditionally avoid
performing its contractual obligations by delivering cash or other financial assets, the Company recognizes the contractual
obligations as financial liabilities, and accordingly does not recognize minority shareholders' equity.
(3) Financial highlights of major non wholly owned subsidiaries
In RMB
Closing balance Opening balance
Compa Curren Non- Curren Non-
Non- Total Total Non- Total Total
ny Curren t current Curren t current
current of liabiliti current of liabiliti
t assets liabiliti liabiliti t assets liabiliti liabiliti
assets assets es assets assets es
es es es es
Zhong 209,53 209,86 102,24 102,48 208,73 209,10 101,34 101,65
328,40 243,13 371,74 305,18
rong 7,112. 5,512. 4,408. 7,542. 7,205. 8,953. 9,268. 4,452.
0.74 3.99 7.97 4.09
Litai 08 82 38 37 21 18 59 68
Fangd
a
806,58 152,60 959,18 537,09 16,912 554,01 770,73 135,42 906,16 540,84 15,118 555,96
Zhiyua
0,699. 4,545. 5,244. 9,105. ,098.8 1,204. 9,460. 3,070. 2,531. 8,850. ,392.7 7,242.
n
09 70 79 97 3 80 72 69 41 07 1 78
Techn
ology
In RMB
Amount occurred in the current period Occurred in previous period
Company Total of Business Total of Business
Turnover Net profit misc. operation Turnover Net profit misc. operation
incomes cash flows incomes cash flows
Zhongrong
55,045.86 -76,530.05 -76,530.05 101,149.87 82,951.18 -54,116.91 -54,116.91 -8,017.93
Litai
Fangda - -
291,615,46 54,940,579. 55,117,691. 300,269,75 28,566,000. 28,963,818.
Zhiyuan 34,107,845. 105,649,96
2.85 16 94 1.24 91 88
Technology 79 2.94
2. Interests in joint ventures or associates
(1) Financial summary of insignificant joint ventures and associates
In RMB
123
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Closing balance/amount occurred in this Opening balance/amount occurred in
period previous period
Associate:
Total book value of investment 54,969,336.56 54,969,042.14
Total shareholding
Net profit 294.42 -32,974.15
--Total of misc. incomes 294.42 -32,974.15
X. Risks of Financial Tools
The risks associated with the financial instruments of the Company arise from the various financial assets and liabilities
recognized by the Company in the course of its operations, including credit risks, liquidity risks and market risks.
The management objectives and policies of various risks related to financial instruments are governed by the management of
the Company. The operating management is responsible for daily risk management through functional departments (for example,
the Company's credit management department reviews the Company's credit sales on a case-by-case basis). The internal audit
department of the Company conducts daily supervision of the implementation of the Company's risk management policies and
procedures, and reports relevant findings to the Company's audit committee in a timely manner.
The overall goal of the Company's risk management is to formulate risk management policies that minimize the risks
associated with various financial instruments without excessively affecting the Company's competitiveness and resilience.
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 fi nancial
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
124
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
qualitative criteria are the major adverse changes in the operation or financial situation of the major debtors, the early warning of
customer list, etc.
(2) Definition of assets where credit impairment has occurred
In order to determine whether or not credit impairment occurs, the standard adopted by our company is consistent with the
credit risk management target for related financial instruments, and quantitative and qualitative indicators are considered.
Major financial difficulties have occurred to the issuer or the debtor; Breach of contract by the debtor, such as payment of
interest or default or overdue of principal; (B) The concession that the debtor would not make under any other circumstances for
economic or contractual considerations relating to the financial difficulties of the debtor; The debtor is likely to be bankrupt or
undertake other financial restructuring; The financial difficulties of the issuer or debtor lead to the disappearance of the active
market for the financial asset; To purchase or generate a financial asset at a substantial discount, which reflects the fact that a
credit loss has occurred.
Credit impairment in financial assets may be caused by a combination of multiple events, not necessarily by events that can
be identified separately.
(3) Expected credit loss measurement
Depending on whether there is a significant increase in credit risk and whether a credit impairment has occurred, the
Company prepares different assets for a 12-month or full expected credit loss. The key parameters of expected credit loss
measurement include default probability, default loss rate and default risk exposure. Taking into account the quantitative analysis
and forward-looking information of historical statistics (such as counterparty ratings, guaranty methods, collateral categories,
repayment methods, etc.), the Company establishes the default probability, default loss rate and default risk exposure model.
Definition:
The probability of default refers to the possibility that the debtor will not be able to fulfill its obligation to pay in the next 12
months or throughout the remaining period.
Breach Loss Rate means the extent of loss expected by the Company for breach risk exposure. Depending on the type of
counterparty, the manner and priority of recourse, and the different collateral, the default loss rate is also different. The default loss
rate is the percentage of the risk exposure loss at the time of the default, calculated on the basis of the next 12 months or the entire
lifetime.
Exposure to default is the amount payable to the Company at the time of default in the next 12 months or throughout the
remaining life. Prospective information credit risks significantly increased and expected credit losses were calculated. Through the
analysis of historical data, the Company has identified the key economic indexes that affect the credit risk of each business type
and the expected credit loss.
The largest credit risk facing the Group is the book value of each financial asset on the balance sheet. The Group makes no
guarantee that may cause the Group credit risks.
Among the Group's receivables, accounts receivable from top 5 customers account for 21.46% of the total accounts
receivable (beginning of the period: 26.41%); among other receivables, other receivables from top 5 customers account for 73.49%
of the total other receivables (beginning of the period: 72.10%).
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
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
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, 2023, the maturity of the Company's financial liabilities is as follows:
Amount: in RMB10,000
June 30, 2023
Item
Less than 1 year Within 1-3 years Over 3 years Total
Short-term loans 157,588.29 157,588.29
Derivative financial liabilities 143.97 143.97
Notes payable 76,178.98 76,178.98
Account payable 166,492.35 2,010.72 259.8 168,762.87
Employees' wage payable 3,663.93 3,663.93
Other payables 6,960.25 967.87 3,071.10 10,999.22
Non-current liabilities due in 1
11,886.50 11,886.50
year
Other current liabilities 5,069.00 5,069.00
Long-term loans 43,500.00 75,800.00 119,300.00
Lease liabilities 759.61 95.7 855.31
Long-term payable 20,464.02
20,464.02
Total liabilities 427,983.27 67,702.22 79,226.60 574,912.09
(Continued)
December 31, 2022
Item
Less than 1 year Within 1-3 years Over 3 years Total
Short-term loans 131,823.85 131,823.85
Derivative financial liabilities 29.34 29.34
Notes payable 73,489.02 73,489.02
Account payable 168,254.83 3,119.05 429.76 171,803.64
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Employees' wage payable 6,715.09 6,715.09
Other payables 7,228.45 1,099.12 3,014.97 11,342.54
Non-current liabilities due in
8,377.86 8,377.86
1 year
Other current liabilities 4,813.32 4,813.32
Long-term loans 63,146.28 63,203.72 126,350.00
Lease liabilities 681.92 8.83 690.75
Long-term payable 19,764.02 19,764.02
Total liabilities 400,731.76 87,810.39 66,657.28 555,199.43
Market risk
(1) Credit risks
The exchange rate risk of the Company mainly comes from the assets and liabilities of the Company and its subsidiaries in
foreign currency not denominated in its functional currency. Except for the use of Hong Kong dollars, United States dollars,
Australian dollars, Vietnamese dong, euro, Indian rupees or Singapore currencies by its subsidiaries established in and outside the
Hong Kong Special Administrative Region, other major businesses of the Company shall be denominated in Renminbi.
As of June 30, 2023, the Company's foreign currency financial assets and liabilities at the end of the period are listed in
Chapter X, VII, item note 63 of consolidated financial statements and description of foreign currency monetary items.
The Company pays close attention to the impact of exchange rate changes on the Company's exchange rate risk. The
Company continuously monitors the scale of foreign currency transactions and foreign currency assets and liabilities to minimize
foreign exchange risks. To this end, the Company may avoid foreign exchange risks by signing forward foreign exchange
contracts or currency swap contracts.
(2) Exchange rate risk
The Group's interest rate risk mainly arises from long-term interest-bearing debts such as long-term bank loans. Financial
liabilities with floating interest rate cause cash flow interest rate risk for the Group. Financial liabilities with fixed interest rate
cause fair value interest rate risk for the Group. The Group decides the proportion between fixed interest rate and floating interest
rate according to the market environment and regularly reviews and monitors the combination of fixed and floating interest rate
instruments.
The Group Finance Department of the Company continuously monitors the Group interest rate level. The rising interest rate
will increase the cost of the new interest-bearing debt and the interest expenditure on interest-bearing debt which has not yet been
paid by the Company at the floating rate, and will have a significant adverse effect on the Company's financial performance.
Management will make adjustments in time according to the latest market conditions.
As of June 30, 2023, when other risk variables remain unchanged, if the borrowing interest rate calculated by floating interest
rate increases or decreases by 50 basis points, the net profit of the company in that year will decrease or increase by
RMB5,994,400 (December 31, 2022: RMB6,125,600).
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
XI. Fair Value
1. Closing fair value of assets and liabilities measured at fair value
In RMB
Closing fair value
Item Second level fair Third level fair
First level fair value Total
value value
1. Continuous fair value
-- -- -- --
measurement
(I) Transactional financial
77,586.17 77,586.17
assets
1. Financial assets measured at
fair value with variations
77,586.17 77,586.17
accounted into current income
account
(1) Derivative financial assets 77,586.17 77,586.17
(2) Receivable financing 9,703,929.82 9,703,929.82
(3) Investment real estate 5,750,831,172.12 5,750,831,172.12
1. Leased building 5,750,831,172.12 5,750,831,172.12
(4) Other non-current financial
7,515,217.28 7,515,217.28
assets
Total assets measured at fair
77,586.17 5,750,831,172.12 17,219,147.10 5,768,127,905.39
value continuously
(5) Transactional financial
1,439,675.00 1,439,675.00
liabilities
1. Derivative financial
1,439,675.00 1,439,675.00
liabilities
Total assets measured at fair
1,439,675.00 1,439,675.00
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.
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
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.
XII. Related Parties and Transactions
1. Parent of the Company
Share of the parent Voting power of
Registered
Parent Business Registered capital co. in the the parent
address
Company company
Shenzhen Banglin
Industrial
Technologies Shenzhen RMB30 million 11.11% 11.11%
investment
Development Co., Ltd.
Industrial
Shengjiu Investment Ltd. Hong Kong HKD1 million 10.25% 10.25%
investment
Particulars about the parent of the Company
① All of the investors of Shenzhen Banglin Technology Development Co., Ltd., the holding shareholder of the Company, are
natural persons. Among them, Chairman Xiong Jianming is holding 85％ shares, and Mr. Xiong Xi – son of Mr. Xiong Jianming,
is holding 15% of the shares.
②Among the top 10 shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu Investment Co., Ltd. are
parties action-in-concert with Xiong Jianming.
The final controller of the Company is Xiong Jianming.
2. Subsidiaries of the Company
For details of subsidiaries of the enterprise, please refer to Note IX, rights and interests in other entities.
3. Joint ventures and associates
Information about other joint ventures or associates with related transactions in this period or with balance generated by related
transactions in previous period:
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Joint venture or associate Relationship with the Company
Ganshang Joint Investment Affiliates of the Company
4. Other associates
Other related parties Relationship with the Company
Jiangxi Business Innovative Property Joint Stock Co., Ltd. Affiliates of the Company
Gong Qing Cheng Shi Li He Investment Management Affiliated relationship with Shenzhen Banglin Technology
Partnership Enterprise (limited partner) Development Co., Ltd.
Shenyang Fangda Subsidiary in liquidation
Shenzhen Yikang Real Estate Co. Ltd. Controlled subsidiaries
Shenzhen Qijian Technology Co., Ltd. (Qijian Technology) Common actual controller
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 124,524.04 112,319.60
goods
(2) Related leasing
The Company is the leasor:
In RMB
Rental recognized in the Rental recognized in the
Name of the leasee Category of asset for lease
period period
Qijian Technology Houses & buildings 434,285.70 434,285.70
(3) Related guarantees
The Company is the guarantor:
In RMB10,000
Amount
Beneficiary party Start date Due date Completed or not
guaranteed
Three years after the expiration
Fangda Jianke 24,000.00 March 9, 2022 Yes
date of debt performance
Three years after the expiration
Fangda New Material 10,000.00 April 20, 2022 Yes
date of debt performance
Three years after the expiration
Fangda Zhijian 7,000.00 June 1, 2022 Yes
date of debt performance
Three years after the expiration
Fangda Zhiyuan 40,000.00 July 4, 2022 Yes
date of debt performance
Three years after the expiration
Fangda Zhiyuan 15,000.00 March 9, 2022 Yes
date of debt performance
130
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Three years after the expiration
Fangda Yunzhu 600.00 May 10, 2022 Yes
date of debt performance
Total amount of
96,600.00
guarantee fulfilled
Three years after the expiration
Fangda Jianke 86,000.00 November 24, 2022 No
date of debt performance
Three years after the expiration
Fangda Jianke 39,000.00 December 9, 2022 No
date of debt performance
Three years after the expiration
Fangda New Material 10,000.00 April 18, 2023 No
date of debt performance
Three years after the expiration
Fangda Yunzhu 1,000.00 March 30, 2023 No
date of debt performance
Three years after the expiration
Fangda New Material 8,500.00 September 6, 2022 No
date of debt performance
Three years after the expiration
Fangda Jianke 15,000.00 May 23, 2022 No
date of debt performance
Three years after the expiration
Fangda Zhijian 7,000.00 May 15, 2023 No
date of debt performance
Three years after the expiration
Fangda Jianke 48,000.00 December 15, 2022 No
date of debt performance
Three years after the expiration
Fangda Zhiyuan 18,000.00 March 22, 2023 No
date of debt performance
Three years after the expiration
Fangda Jianke 50,000.00 September 20, 2022 No
date of debt performance
Three years after the expiration
Fangda Jianke 30,000.00 October 19, 2022 No
date of debt performance
Three years after the expiration
Fangda Jianke 30,000.00 September 20, 2022 No
date of debt performance
Three years after the expiration
Fangda Jianke 4,000.00 September 8, 2022 No
date of debt performance
Three years after the expiration
Fangda Jianke 4,000.00 May 15, 2023 No
date of debt performance
Three years after the expiration
Fangda Jianke 20,000.00 August 10, 2022 No
date of debt performance
Three years after the expiration
Fangda Jianke 60,000.00 January 21, 2023 No
date of debt performance
Three years after the expiration No
Fangda Zhiyuan 36,000.00 June 20, 2023
date of debt performance
Three years after the expiration No
Fangda Jianke 24,000.00 May 5, 2023
date of debt performance
Three years after the expiration
Fangda Zhiyuan 15,000.00 May 5, 2022 No
date of debt performance
Three years after the expiration
Fangda Zhiyuan 20,000.00 October 19, 2022 No
date of debt performance
Three years after the expiration
Fangda Zhiyuan 15,000.00 November 1, 2022 No
date of debt performance
Three years after the expiration
Fangda Zhiyuan 10,000.00 May 23, 2022 No
date of debt performance
Three years after the expiration
Fangda Yunzhu 600.00 May 11, 2023 No
date of debt performance
Three years after the expiration
Fangda Yunzhu 800.00 August 19, 2022 No
date of debt performance
Three years after the expiration
Fangda Jianke 20,000.00 March 31, 2023 No
date of debt performance
Two years after the expiration
Fangda Property 135,000.00 February 25, 2020 No
date of debt performance
Fangda Property 47,000.00 December 16, 2020 Three years after the expiration No
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
date of debt performance
Fangda Jianke and Two years after the expiration
15,400.00 December 18, 2019 No
Zhiyuan Technology date of debt performance
Total amount of
guarantee being 769,300.00
performed
Description of related party guarantee: The above-mentioned guarantees are all associated guarantees within interested entities of
the Company.
(4) Remuneration of key management
In RMB
Item Amount occurred in the current period Occurred in previous period
Directors, supervisors and senior
4,799,048.45 4,289,505.05
management
6. Receivable and payables due with related parties
(1) Receivable interest
In RMB
Closing balance Opening balance
Project name Affiliated party Remaining book Remaining book
Bad debt provision Bad debt provision
value value
Account
Qijian Technology 4,708.76 47.09
receivable
Other receivables Shenyang Fangda 42,877.00 42,877.00
Ganshang Joint
Other receivables 3,791,089.25 56,487.23 3,791,089.25 56,487.23
Investment
Shenzhen Yikang
Other receivables Real Estate Co. 76,062,675.83 1,133,333.87 70,062,675.83 1,043,933.87
Ltd.
(2) Receivable interest
In RMB
Opening balance of book
Project name Affiliated party Closing balance of book value
value
Shenzhen Yikang Real Estate
Other payables 26,044,709.60 25,305,047.71
Co. Ltd.
Other payables Qijian Technology 400.00 400.00
Other payables Ganshang Joint Investment 3,355.36 3,355.36
XIII. Contingent events
1. Major commitments
Major commitments that exist on the balance sheet day
On November 6, 2017, Fangda Real Estate Co., Ltd., a subsidiary of the Company, and Bangshen Electronics (Shenzhen) Co.,
Ltd. signed the "Joint Development Agreement on Fangda Bangshen Industrial Park (Temporary Name) Urban Renewal Project",
132
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
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, 2023, Fangda Real Estate
has paid a deposit of RMB 20,000,000.
(2) In July 2018 ,the Company's subsidiary Fangda Real Estate Co. Ltd. (Party A) signed a contract with Shenzhen Yikang
Real Estate Co. Ltd. (Party B1) and Shenzhen Qianhai Zhongzheng Dingfeng No. 6 Investment Enterprise (Limited Partnership)
(Party B2), "Shenzhen Henggang Dakang Village Project Cooperation Agreement". Party B agrees to transfer the entire equity of
the project company it holds and the entire development interest of the project to Party A. Party A shall pay Party B a total of
RMB600 million for the cooperation price. As of June 30, 2023, Fangda Property has paid Party B and the project company
RMB50 million of security deposit, RMB20 million of service fee, RMB61,937,200 of equity transfer and RMB79,062,800 of
other related payments.
In May 2021, the subsidiaries Fangda Jianke, Fangda Jiangxi New Material and CITIC Securities Investment Co., Ltd.,
Shenzhen Hi Tech Investment Venture Capital Co., Ltd., Shenzhen Qianhai Pengchen Investment Partnership (limited partnership),
Gongqingcheng Longrun Spring Investment Partnership (limited partnership), Shenzhen Jiayuan Capital Management Co., Ltd
and Gongqingcheng Huasheng Botai Investment Partnership (limited partnership) (hereinafter referred to as the "Transferee")
signed equity transfer agreements to transfer 10.9375% of the total equity of Fangda Zhiyuan Technology, with the transfer
amount of RMB 175 million. The agreement also stipulates that if Fangda Zhiyuan Technology fails to start and complete the
qualified listing before May 31, 2025, the transferee has the right to require Fangda Jianke and Fangda Jiangxi New Material to
repurchase or transfer all or part of the equity of Fangda Zhiyuan Technology held by the transferee.
The Company has no other commitments that should be disclosed by June 30, 2023.
2. Contingencies
Significant contingencies on the balance sheet date:
(1) Contingent liabilities formed by material lawsuit or arbitration, and their influences on the financial position
① On June 19, 2019, Langfang Aomei Jiye Real Estate Development Co., Ltd. filed a lawsuit against Fangda Jianke in the
People's Court of Langfang Development Zone, demanding compensation of RMB19,721,315.00, and filed an application for
appraisal of quality, repair cost and uncompleted project cost on December 26, 2019; Fangda Jianke filed a counterclaim on
September 11, 2019, demanding payment of RMB13,939,863.27, 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 under trial.
② In March 2022, Xiangheng Real Estate (Jinan) Co., Ltd. filed an arbitration with the Jinan Arbitration Commission,
requesting Fangda Jianke to bear the deduction, maintenance, rectification and rework costs of RMB8,956,563.81 and lawyer's
fees of RMB350,000.00 caused by the quality problems of the supply and installation of aluminum alloy doors and windows,
louvers and curtain walls of Jinan Kerry comprehensive development project (phase I and II); In April 2022, Fangda Construction
Technology Co., Ltd. filed an anti arbitration application, requiring Xiangheng Real Estate (Jinan) Co., Ltd. to pay a total of
RMB18,062,462.28 for the project funds and project expenses. As of the date of this report, the two cases are under joint trial.
③ In September 2022, Fangda Jianke Co., Ltd. filed a lawsuit to the People's Court of Longhua District, requiring Longguang
Engineering Construction Co., Ltd. to pay the total principal and interest of the project funds of Longguang Jiuzuan Project Plot 05
and Plot 09 to Fangda Construction Technology Co., Ltd., totaling RMB33,197,543.00. As of the date of this report, the case of
the Jiuzhuan 05 plot project has been adjudicated in first instance, with Longguang Company being sentenced to pay the
engineering fee of RMB7,709,679.55, the quality assurance deposit of RMB6,033,911.38, and corresponding interest to Fangda
Construction Technology Company. Longguang Company has the priority right to be compensated for the sale and auction price
133
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
of the curtain wall production and installation project of the project; Due to both parties filing appeals, it is currently in the second
instance. The Jiuzhuan 09 plot project is still under first instance review.
④ In October 2022, Fangda Jianke Co., Ltd. filed a lawsuit to the People's Court of Danzhou City, Hainan Province,
requesting Danzhou Dongtuo Tourism Development Co., Ltd. to pay to Fangda Jianke Co., Ltd. a total of RMB27,863,564.06 of
the principal and interest of the project payment for the Hengda Huadao Project. As of the date of this report, the court has filed a
case and the case is currently under trial.
⑤ In October 2022, Fangda Jianke Co., Ltd. filed an application for arbitration with the Guiyang Arbitration Commission,
requiring Zhongtian Urban Investment Group Guiyang International Financial Center Co., Ltd. to pay Fangda Jianke Co., Ltd. a
total of RMB10,818,847.31 of the principal and interest of the curtain wall project of Building 7 and Building 9 in the first phase
of Guiyang International Financial Center Business District. As of the date of this report, the arbitration tribunal has filed a case
and held a hearing, waiting for an award.
⑥ In September 2022, Fangda Real Estate Co., Ltd. filed a lawsuit to the People's Court of Nanshan District, Shenzhen,
requiring Shenzhen Hongtao Group Co., Ltd. to pay the total principal and interest of Fangda Real Estate Co., Ltd. to Fangda Real
Estate Co., Ltd. for the purchase of building 3 # in Fangda City, amounting to RMB56,527,427.01, and Hongtao Company's
counterclaim party, Dada Real Estate Co., Ltd., requested to cancel the signed Supplementary Agreement on Real Estate Sales and
pay the liquidated damages of RMB44,046,859.04 for overdue certificate processing. As of the disclosure date of this report, the
court has issued a first instance judgment, ruling that Hongtao Company shall pay Fangda Real Estate Company the purchase price
of RMB40,127,678.19 and overdue payment interest (temporarily calculated as RMB8,418,135.54 until June 30, 2022). The
subsequent interest shall be calculated based on RMB40,127,678.19 and continue to be calculated until the actual payment date
according to the loan market quotation interest rate standard published by the National Interbank Funding Center. Reject all
counterclaim requests from Hongtao Company. At present, both parties have filed an appeal and the case has entered the second
instance process.
⑦ In September 2022, Fangda Real Estate filed a lawsuit with the People's Court of Nanshan District, Shenzhen City,
requesting the court to order the cancellation of the Shenzhen Real Estate Sales Contract (Cash Sale) signed by Fangda Real Estate
and Shenzhen Rijiasheng Trading Co., Ltd., and order Rijiasheng to pay the bank mortgage loan compensation of
RMB18,796,489.12 and interest of RMB3,800,495.61 to Fangda Real Estate, and the liquidated damages for contract cancellation
of RMB3,428,313.10, occupation fee Please refund the overdue fee. In September 2022, Shenzhen Rijiasheng Trading Co., Ltd.
filed a lawsuit to the People's Court of Nanshan District, Shenzhen, requesting Fangda Real Estate to perform the obligation of
handling the certificate and bear the liquidated damages for overdue handling of the certificate. The provisional amount of
RMB3,669,046.43 is actually calculated until the certificate is completed. As of the date of this report, the court has issued first
instance judgments, with Fangda Real Estate Company v. Japan Jiasheng Company ruling supporting the termination of the
contract and paying the bank mortgage loan repayment of RMB18,708,945.57 and interest of RMB3,790,999.98, as well as paying
a breach of contract penalty of RMB1,714,156.55 and the occupancy and use fee of the house. The case of Rijia Sheng Company v.
Da Real Estate Company was ruled to reject all litigation requests. At present, both parties have filed an appeal and the case has
entered the second instance process.
⑧ In July 2022, Wang Weihong filed a lawsuit on the ground that Fang Dajianke Company constituted a preservation error
in the (2015) YYYZFMCZ No. 01205 case, claiming that Fang Dajianke Company compensated for the loss of RMB2,325,779.17,
and another lawsuit claimed that Fang Dajianke Company owed its project payment principal of RMB4.78 million and interest.
The court of first instance in both cases has ruled against all of Wang Weihong's claims. As of the date of this report, the second
instance court in the case of preservation error has revised the judgment that Fang Dajian Technology Company paid interest loss
of RMB44,197.44 to Wang Weihong, which has been fulfilled. The second instance court of the first and second instance of the
construction project dispute has ruled to remand the case for retrial, and currently has not received any information on the retrial
case.
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
⑨ Fangda Zhiyuan Technology Co., Ltd. and Shenzhen BYD Supply Chain Management Co., Ltd. (hereinafter referred to as
"BYD") have a purchase and sales contract dispute, and BYD has defaulted on payment for goods. Fangda Zhiyuan Technology
Co., Ltd. filed a lawsuit to the People's Court of Pingshan District on October 20, 2022, demanding payment of RMB5.4532
million for raw materials and storage and management fees. The case was accepted by the court on February 13, 2023, and as of
the date of this report, it has been settled through settlement.
⑩ In April 2023, Fangda Jianke Company filed a lawsuit with the Guangzhou Intermediate People's Court, demanding the
termination of the construction contract signed with Guangzhou Kaidar Investment Co., Ltd. for the Kaidar Hub International
Plaza project, and requiring Guangzhou Kaidar Investment Co., Ltd. to pay the principal amount of the project payment of
RMB113,529,244.60 and interest to Fangda Jianke Company, and claiming the priority right to receive compensation for the
construction project price. As of the date of this report, the court has filed a case and the case is currently under trial.
In June 2023, Fangda Jianke Company filed a lawsuit with the People's Court of Shapingba District, Chongqing,
demanding that Chongqing Longhu Jingnan Real Estate Development Co., Ltd. pay Fangda Jianke Company the principal amount
of RMB9,754,668.59 and overdue interest for the Chongqing Longhu Shapingba project, and claim the priority right to receive
compensation for the construction project price. As of the disclosure date of this report, the court has filed and accepted the case,
and it is currently under trial.
(2) Contingent liabilities formed by providing of guarantee to other companies' debts and their influences on financial
situation
By June 30, 2023, the Company has provided loan guarantees for the following entities:
In RMB10,000
Name of guaranteed entity Guarantee Amount Term Remarks
Guarantee and
Fangda Property 87,000.00 2020.03.13-2030.03.12
mortgage guarantee
Fangda Property Guarantee 42,850.00 2021.03.18-2031.03.18
Guarantee and
Fangda Jianke 4,000.00 2022.09.08-2023.09.03
mortgage guarantee
Fangda Jianke Guarantee 4,000.00 2023.02.27-2024.02.27
Fangda Jianke Guarantee 5,000.00 2023.03.17-2024.03.17
Guarantee and
Fangda Jianke 4,000.00 2023.05.22-2024.05.16
mortgage guarantee
Fangda Yunzhu Guarantee 980.00 2022.05.18-2024.05.17
Fangda Jianke Guarantee 5,000.00 2023.05.26-2024.05.25
Fangda Zhiyuan Technology Guarantee 3,000.00 2022.07.25-2023.07.25
Total 155,830.00
Notes:: ① Providing debt guarantees to other units is all related guarantees between internal equity entities of the company.
② The Company's property business provides periodic mortgage guarantee for property purchasers. The term of the periodic
guarantee lasts from the effectiveness of guarantee contracts to the completion of mortgage registration and transfer of housing
ownership certificates to banks. By June 30, 2023, the Company has provided periodic guarantee of RMB13,102,400.
(3) Other contingent liabilities and their influences
The Company has no other contingent events that should be disclosed by June 30, 2023.
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Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
3. Others
Status of non-revocation of company as at June 30, 2023：
Guarantee balance (original
Currency Deposit (RMB) Credit line used (RMB)
currency)
CNY 775,140,903.15 823,387.12 774,317,516.03
INR 82,691,782.78 46,099.32 7,232,844.86
HKD 15,349,982.00 15,000,000.00
USD 2,507,136.33 1,483,068.77 16,632,996.92
SGD 2,700,000.00 14,429,340.00
AUD 2,388,000.00 11,460,489.60
EUR 3,771,764.01 29,710,562.28
Total 17,352,555.21 853,783,749.69
XIV. Post-balance-sheet events
1. Notes to other issues in post balance sheet period
The Company has no issues in post balance sheet period that need to be disclosed on August 25, 2023 (report
date approved by the Board of Directors).
XV. Other material events
1. Segment information
(1) Recognition basis and accounting policy for segment report
The Group divides its businesses into five reporting segments. The reporting segments are determined based on financial
information required by routine internal management. The Group's management regularly review the operating results of the
reporting segments to determine resource distribution and evaluate their performance.
The reporting segments are:
(1) Curtain wall segment, production and sales of curtain wall materials, construction curtain wall design, production and
installation;
(2) Rail transport segment: assembly and processing of metro screen doors;
(3) Real estate segment: development and operating of real estate on land of which land use right is legally obtained by the
Company; property management;
(4) New energy segment: photovoltaic power generation, photovoltaic power plant sales, photovoltaic equipment R & D,
installation, and sales, and photovoltaic power plant engineering design and installation
(5) Others
The segment report information is disclosed based on the accounting policies and measurement standards used by the
segments when reporting to the management. The policies and standards should be consistent with those used in preparing the
financial statement.
136
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
(2) Financial information
In RMB
Offset
Item Curtain wall Rail transport Real estate New energy Others between Total
segments
1,657,229,55 291,615,462. 119,931,935. 12,353,745.9 11,586,245.9 2,078,846,87
Turnover 9,302,428.34
1.12 85 09 1 9 7.32
Including:
external 1,654,849,16 291,615,462. 115,913,190. 2,078,846,87
8,947,285.78 7,521,771.30
transaction 6.62 85 77 7.32
income
Inter-
segment 11,586,245.9
2,380,384.50 0.00 4,018,744.32 355,142.56 4,831,974.61
transaction 9
income
Including:
major 1,643,016,52 291,538,344. 52,962,063.4 1,994,095,25
9,302,428.34 2,724,113.27
business 9.06 20 0 1.72
turnover
Operating 1,385,103,43 209,278,784. 28,749,363.2 1,624,230,46
3,936,675.50 2,837,792.61
cost 8.12 39 3 8.63
Including:
1,378,141,69 209,278,784. 25,085,173.6 1,613,648,91
major 3,936,675.50 2,793,422.55
9.70 39 5 0.68
business cost
-
Operation 141,557,736. 18,560,695.2 56,178,619.4 240,665,742.
361,845.62 8,595,089.34 15,411,756.1
cost 53 8 8 38
3
Operating 130,484,288. 63,775,983.1 35,330,704.8 24,402,874.3 213,950,666.
5,003,907.22 3,758,656.60
profit/(loss) 83 8 2 4 31
5,601,395,08 959,185,244. 6,244,489,44 189,418,976. 3,105,309,13 3,160,473,46 12,939,324,4
Total assets
8.68 79 9.25 71 2.15 6.34 25.23
Total 3,458,793,62 554,011,204. 3,477,503,32 70,343,151.3 821,262,631. 1,384,583,41 6,997,330,51
liabilities 2.07 80 0.01 4 09 1.82 7.49
(3) Others
Since 88.09% of the Group's revenue comes from Chinese customer and 90% of the Group's assets are in China, no detailed
regional information is needed.
XVI. Notes to Financial Statements of the Parent
1. Account receivable
(1) Account receivable disclosed by categories
In RMB
Closing balance Opening balance
Remaining book Remaining book
Type Bad debt provision Book Bad debt provision Book
value value
value value
Amount Proporti Amount Provisio Amount Proporti Amount Provisio
137
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
on n rate on n rate
Includin
g:
Account
receivab
le for
which
538,064. 53,870.4 484,193. 680,529. 32,584.9 647,944.
bad debt 100.00% 10.01% 100.00% 4.79%
33 5 88 54 6 58
provisio
n is
made by
group
Includin
g:
Portfolio
538,064. 53,870.4 484,193. 680,529. 32,584.9 647,944.
3. 100.00% 10.01% 100.00% 4.79%
33 5 88 54 6 58
Others
538,064. 53,870.4 484,193. 680,529. 32,584.9 647,944.
Total 100.00% 10.01% 100.00% 4.79%
33 5 88 54 6 58
Provision for bad debts by combination:
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Portfolio 3. Others 538,064.33 53,870.45 10.01%
Total 538,064.33 53,870.45
Group recognition basis:
See 9. Financial Tools in Chapter X, V, Important Accounting Policies and Accounting Estimates for the recognition criteria and
instructions for withdrawing bad debt reserves by portfolio
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, please
refer to the disclosure of other receivables to disclose information about bad debts:
□ Applicable Inapplicable
Account age
In RMB
Age Closing balance
Within 1 year (inclusive) 178,934.44
2-3 years 222,666.00
3-4 years 136,463.89
Total 538,064.33
(2) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Opening
Type Written-back or Closing balance
balance Provision Canceled Others
recovered
138
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Portfolio 3. Others 32,584.96 21,285.49 53,870.45
Total 32,584.96 21,285.49 53,870.45
(3) Balance of top 5 accounts receivable at the end of the period
In RMB
Closing balance of accounts Balance of bad debt provision
Entity Percentage (%)
receivable at the end of the period
Top five summary 538,064.33 100.00% 53,870.45
Total 538,064.33 100.00%
2. Other receivables
In RMB
Item Closing balance Opening balance
Other receivables 1,073,141,303.92 1,046,500,428.02
Total 1,073,141,303.92 1,046,500,428.02
(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 80,000.00 150,699.54
Debt by Luo Huichi 11,242,291.48
Others 64,732.30 396,561.98
Accounts between related parties within
1,072,998,703.01 1,046,003,558.83
the scope of consolidation
Total 1,073,143,435.31 1,057,793,111.83
2) Method of bad debt provision
In RMB
First stage Second stage Third stage
Bad debt provision Expected credit loss for Expected credit loss for Total
Expected credit losses
the entire duration (no the entire duration (credit
in the next 12 months
credit impairment) impairment has occurred)
Balance on January 1,
7,515.33 11,285,168.48 11,292,683.81
2023
Balance on January 1,
2023 in the current
period
Provision -5,383.94 -5,383.94
Transferred back in the
292,877.00 292,877.00
current period
Canceled in the current
10,992,291.48 10,992,291.48
period
139
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Balance on June 30,
2,131.39 2,131.39
2023
Account age
In RMB
Age Closing balance
Within 1 year (inclusive) 87,317,526.23
1-2 years 273,452,880.00
2-3 years 476,158,158.54
Over 3 years 236,214,870.54
3-4 years 205,755,077.45
4-5 years 0.00
Over 5 years 30,459,793.09
Total 1,073,143,435.31
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
11,292,683.81 -5,383.94 292,877.00 10,992,291.48 2,131.39
bad debt
provision
Total 11,292,683.81 -5,383.94 292,877.00 10,992,291.48 2,131.39
4) Other receivable written off in the current period
In RMB
Item Amount
Luo Huichi 10,992,291.48
Including significant other receivable:
In RMB
Writing-off Related
Entity Nature Amount Reason
procedure transaction
Impossible enforcement
Approved by
Debt by Luo of property, with minimal
Luo Huichi 10,992,291.48 the senior No
Huichi possibility of subsequent
management
recovery
Total 10,992,291.48
5) Balance of top 5 other receivables at the end of the period
In RMB
140
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Balance of bad
debt provision
Entity By nature Closing balance Age Percentage (%)
at the end of
the period
74,529,980.00 Less than 1 year
Affiliated party 108,902,550.00 1-2 years
Fangda Property 79.18%
payment 460,489,120.00 2-3 years
205,755,077.45 3-4 years
2,500,000.00 Less than 1 year
Fangda Jiangxi Affiliated party
164,550,000.00 1-2 years 17.02%
Property Development payment
15,589,038.54 2-3 years
Affiliated party
Shihui International 30,459,793.09 Over 5 years 2.84%
payment
Affiliated party
Yunzhu Technology 10,035,928.48 Less than 1 year 0.94%
payment
Fangda Zhiyuan Affiliated party
149,721.00 Less than 1 year 0.01%
Technology payment
Total 1,072,961,208.56 99.99%
3. Long-term share equity investment
In RMB
Closing balance Opening balance
Item Remaining Impairment Remaining Impairment
Book value Book value
book value provision book value provision
Investment in 1,486,831,253. 1,486,831,253. 1,457,331,253. 1,457,331,253.
subsidiaries 00 00 00 00
1,486,831,253. 1,486,831,253. 1,457,331,253. 1,457,331,253.
Total
00 00 00 00
(1) Investment in subsidiaries
In RMB
Change (+,-) Balance of
impairment
Invested Opening Closing book
Increased Decreased Impairment provision at
entity book value Others value
investment investment provision the end of the
period
Fangda 751,950,000. 751,950,000.
Jianke 00 00
Fangda
74,496,600.0 74,496,600.0
Jiangxi New
0 0
Material
Fangda 198,000,000. 198,000,000.
Property 00 00
Shihui
61,653.00 61,653.00
International
Fangda New 99,000,000.0 99,000,000.0
Energy 0 0
Fangda
98,000,000.0 98,000,000.0
Hongjun
0 0
Investment
Fangda 235,323,000. 235,323,000.
141
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
Investment 00 00
Fangda
Intelligent 29,500,000.0 30,000,000.0
500,000.00
Manufacturin 0 0
g
1,457,331,25 29,500,000.0 1,486,831,25
Total
3.00 0 3.00
4. Operational revenue and costs
In RMB
Amount occurred in the current period Occurred in previous period
Item
Income Cost Income Cost
Other businesses 12,358,317.34 14,705,232.50 418,824.01
Total 12,358,317.34 14,705,232.50 418,824.01
Income information:
In RMB
Contract classification Segment 1 - other segments Total
Type of product
Including:
Other businesses 12,358,317.34 12,358,317.34
Total 12,358,317.34 12,358,317.34
Information related to performance obligations:
The operating income of the parent company comes from property rental income.
5. Investment income
In RMB
Item Amount occurred in the current period Occurred in previous period
Investment gain of financial products 431,992.15
Total 431,992.15
XVII. Supplementary Materials
1. Detailed accidental gain/loss
Applicable □ Inapplicable
In RMB
Item Amount Notes
Non-current asset disposal gain/loss (including the write-off part for which
373,352.08
assets impairment provision is made)
Government subsidies accounted into current gain/loss account, other than those
closely related to the Company's common business, comply with the national 6,748,993.91
policy and continues to enjoy at certain fixed rate or amount.
Gain/loss from change of fair value of transactional financial asset and 7,782.60
142
Interim Financial Statements 2023 of China Fangda Group Co., Ltd.
liabilities, and investment gains from disposal of transactional financial assets
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 for which impairment test is
4,750,256.42
performed individually
Gain/loss from change of fair value of investment property measured at fair
122,109.40
value in follow-up measurement
Other non-business income and expenditures other than the above -365,816.05
Less: Influenced amount of income tax 1,835,470.87
Influenced amount of minority shareholders' equity 130,276.06
Total 9,670,931.43 --
Other gain/loss items satisfying the definition of non-recurring gain/loss account:
□ Applicable Inapplicable
The Company has no other gain/loss items satisfying the definition of non-recurring gain/loss account
Circumstance that should be defined as recurrent profit and loss to Explanation Announcement of Information Disclosure No. 1 -
Non-recurring gain/loss
□ Applicable Inapplicable
2. Net income on asset ratio and earning per share
Earning per share
Weighted average net
Profit of the report period Basic earnings per share Diluted Earnings per share
income/asset ratio
(yuan/share) (yuan/share)
Net profit attributable to common
3.14% 0.17 0.17
shareholders of the Company
Net profit attributable to the
common owners of the PLC after
2.97% 0.16 0.16
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
No
143
