CHINA FANGDA GROUP CO., LTD.
2019 Financial Statements
August 2019
I. Auditor’s report
Whether the interim report is audited
□ Yes √ No
The financial statements for H1 2014 have not been audited.II. Financial statementsUnit for statements in notes to financial statements: RMB yuan
1. Consolidated Balance Sheet
Prepared by: China Fangda Group Co., Ltd.
In RMB
| Item | June 30, 2019 | December 31, 2018 |
| Current asset: | ||
| Monetary capital | 1,072,726,726.45 | 1,389,062,083.76 |
| Settlement provision | ||
| Outgoing call loan | ||
| Transactional financial assets | 200,121,506.67 | |
| Financial assets measured at fair value with variations accounted into current income account | ||
| Derivative financial assets | 17,375.00 | |
| Notes receivable | 85,655,871.18 | 140,139,692.84 |
| Account receivable | 2,118,904,495.79 | 1,920,075,031.85 |
| Receivable financing | ||
| Prepayment | 73,540,307.08 | 46,454,844.74 |
| Insurance receivable | ||
| Reinsurance receivable | ||
| Provisions of Reinsurance contracts receivable | ||
| Other receivables | 162,536,536.53 | 139,990,188.26 |
| Including: interest receivable | 366,666.66 | |
| Dividend receivable | ||
| Repurchasing of financial assets | ||
| Inventory | 750,395,540.06 | 651,405,832.29 |
| Contract assets | ||
| Assets held for sales | ||
| Non-current assets due in 1 year | ||
| Other current assets | 114,294,388.81 | 51,698,111.14 |
| Total current assets | 4,578,192,747.57 | 4,338,825,784.88 |
| Non-current assets: | ||
| Loan and advancement provided | ||
| Debt investment | ||
| Sellable financial assets | 21,674,008.23 | |
| Other debt investment | ||
| Investment held until mature | ||
| Long-term receivable | ||
| Long-term share equity investment | 69,779,924.33 | 70,105,657.88 |
| Investment in other equity tools | 21,674,008.23 | |
| Other non-current financial assets | ||
| Investment real estate | 5,285,303,323.58 | 5,256,442,406.63 |
| Fixed assets | 431,948,450.66 | 455,274,241.83 |
| Construction in process | 90,993,650.25 | 58,269,452.72 |
| Productive biological assets | ||
| Gas & petrol | ||
| Use right assets | ||
| Intangible assets | 79,441,627.18 | 80,313,240.67 |
| R&D expense | ||
| Goodwill | ||
| Long-term amortizable expenses | 2,476,634.82 | 2,114,331.46 |
| Deferred income tax assets | 357,050,574.16 | 356,474,925.76 |
| Other non-current assets | 23,941,839.67 | 19,360,083.67 |
| Total of non-current assets | 6,362,610,032.88 | 6,320,028,348.85 |
| Total of assets | 10,940,802,780.45 | 10,658,854,133.73 |
| Current liabilities | ||
| Short-term loans | 900,000,000.00 | 208,000,000.00 |
| Loans from Central Bank | ||
| Call loan received | ||
| Transactional financial liabilities |
| Financial liabilities measured at fair value with variations accounted into current income account | ||
| Derivative financial liabilities | 1,625,725.00 | |
| Notes payable | 533,557,330.40 | 507,864,518.19 |
| Account payable | 953,298,396.58 | 1,039,630,798.64 |
| Prepayment received | 132,431,063.25 | 278,577,848.54 |
| Selling of repurchased financial assets | ||
| Deposit received and held for others | ||
| Entrusted trading of securities | ||
| Entrusted selling of securities | ||
| Employees' wage payable | 23,925,424.42 | 44,513,062.17 |
| Taxes payable | 21,432,798.90 | 107,709,999.19 |
| Other payables | 836,350,288.81 | 813,118,699.84 |
| Including: interest payable | 2,423,014.69 | 2,098,971.44 |
| Dividend payable | ||
| Fees and commissions payable | ||
| Reinsurance fee payable | ||
| Contract liabilities | ||
| Liabilities held for sales | ||
| Non-current liabilities due in 1 year | 800,000,000.00 | 200,000,000.00 |
| Other current liabilities | 10,023,641.11 | 9,328,682.25 |
| Total current liabilities | 4,211,018,943.47 | 3,210,369,333.82 |
| Non-current liabilities: | ||
| Insurance contract provision | ||
| Long-term loans | 593,978,153.39 | 1,193,978,153.39 |
| Bond payable | ||
| Including: preferred stock | ||
| Perpetual bond | ||
| Lease liabilities | ||
| Long-term payable | ||
| Long-term employees’ wage payable |
| Anticipated liabilities | 6,672,052.01 | 6,831,162.99 |
| Deferred earning | 10,956,741.32 | 10,401,161.30 |
| Deferred income tax liabilities | 1,044,043,233.97 | 1,042,086,700.35 |
| Other non-current liabilities | ||
| Total of non-current liabilities | 1,655,650,180.69 | 2,253,297,178.03 |
| Total liabilities | 5,866,669,124.16 | 5,463,666,511.85 |
| Owner’s equity: | ||
| Share capital | 1,123,384,189.00 | 1,155,481,686.00 |
| Other equity tools | ||
| Including: preferred stock | ||
| Perpetual bond | ||
| Capital reserves | 1,454,191.59 | 1,454,191.59 |
| Less: Shares in stock | 10,831,437.66 | |
| Other miscellaneous income | 3,605,436.34 | 7,382,087.59 |
| Special reserves | ||
| Surplus reserves | 54,042,195.07 | 120,475,221.40 |
| Common risk provisions | ||
| Retained profit | 3,841,302,110.76 | 3,921,225,872.96 |
| Total of owner’s equity belong to the parent company | 5,023,788,122.76 | 5,195,187,621.88 |
| Minor shareholders’ equity | 50,345,533.53 | |
| Total of owners’ equity | 5,074,133,656.29 | 5,195,187,621.88 |
| Total of liabilities and owner’s interest | 10,940,802,780.45 | 10,658,854,133.73 |
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua
2. Balance Sheet of the Parent Company
In RMB
| Item | June 30, 2019 | December 31, 2018 |
| Current asset: | ||
| Monetary capital | 101,688,461.26 | 410,118,157.55 |
| Transactional financial assets | ||
| Financial assets measured at fair value with variations accounted into current income account |
| Derivative financial assets | ||
| Notes receivable | 200,000,000.00 | 200,000,000.00 |
| Account receivable | 14,565.67 | 471,039.12 |
| Receivable financing | ||
| Prepayment | 1,661,827.83 | 6,733,047.16 |
| Other receivables | 1,320,828,678.84 | 822,543,653.04 |
| Including: interest receivable | ||
| Dividend receivable | 100,000,000.00 | 100,000,000.00 |
| Inventory | ||
| Contract assets | ||
| Assets held for sales | ||
| Non-current assets due in 1 year | ||
| Other current assets | 6,711,425.57 | 919,388.18 |
| Total current assets | 1,630,904,959.17 | 1,440,785,285.05 |
| Non-current assets: | ||
| Debt investment | ||
| Sellable financial assets | 21,674,008.23 | |
| Other debt investment | ||
| Investment held until mature | ||
| Long-term receivable | ||
| Long-term share equity investment | 1,013,339,495.35 | 983,339,494.35 |
| Investment in other equity tools | 21,674,008.23 | |
| Other non-current financial assets | ||
| Investment real estate | 309,189,866.37 | 309,189,866.37 |
| Fixed assets | 52,804,391.71 | 53,784,811.23 |
| Construction in process | ||
| Productive biological assets | ||
| Gas & petrol | ||
| Use right assets | ||
| Intangible assets | 1,961,314.57 | 2,112,301.97 |
| R&D expense | ||
| Goodwill | ||
| Long-term amortizable expenses | 777,499.64 | 917,499.68 |
| Deferred income tax assets | 38,972,942.37 | 34,555,598.81 |
| Other non-current assets | ||
| Total of non-current assets | 1,438,719,518.24 | 1,405,573,580.64 |
| Total of assets | 3,069,624,477.41 | 2,846,358,865.69 |
| Current liabilities | ||
| Short-term loans | 500,000,000.00 | 200,000,000.00 |
| Transactional financial liabilities | ||
| Financial liabilities measured at fair value with variations accounted into current income account | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Account payable | 606,941.85 | 676,941.85 |
| Prepayment received | 694,791.63 | 733,274.16 |
| Contract liabilities | ||
| Employees' wage payable | 1,001,120.09 | 2,145,763.39 |
| Taxes payable | 819,162.49 | 341,004.65 |
| Other payables | 450,775,536.65 | 300,006,406.51 |
| Including: interest payable | 1,162,456.96 | 740,208.33 |
| Dividend payable | ||
| Liabilities held for sales | ||
| Non-current liabilities due in 1 year | 500,000,000.00 | |
| Other current liabilities | ||
| Total current liabilities | 1,453,897,552.71 | 503,903,390.56 |
| Non-current liabilities: | ||
| Long-term loans | 100,000,000.00 | 500,000,000.00 |
| Bond payable | ||
| Including: preferred stock | ||
| Perpetual bond | ||
| Lease liabilities | ||
| Long-term payable | ||
| Long-term employees’ wage payable | ||
| Anticipated liabilities | ||
| Deferred earning |
| Deferred income tax liabilities | 64,030,014.06 | 64,130,617.41 |
| Other non-current liabilities | ||
| Total of non-current liabilities | 164,030,014.06 | 564,130,617.41 |
| Total liabilities | 1,617,927,566.77 | 1,068,034,007.97 |
| Owner’s equity: | ||
| Share capital | 1,123,384,189.00 | 1,155,481,686.00 |
| Other equity tools | ||
| Including: preferred stock | ||
| Perpetual bond | ||
| Capital reserves | 360,835.52 | 360,835.52 |
| Less: Shares in stock | 10,831,437.66 | |
| Other miscellaneous income | 3,590,127.88 | 8,756,553.46 |
| Special reserves | ||
| Surplus reserves | 54,042,195.07 | 120,475,221.40 |
| Retained profit | 270,319,563.17 | 504,081,999.00 |
| Total of owners’ equity | 1,451,696,910.64 | 1,778,324,857.72 |
| Total of liabilities and owner’s interest | 3,069,624,477.41 | 2,846,358,865.69 |
3. Consolidated Income Statement
In RMB
| Item | H1 2019 | H1 2018 |
| 1. Total revenue | 1,425,890,946.99 | 1,442,050,896.53 |
| Incl. Business income | 1,425,890,946.99 | 1,442,050,896.53 |
| Interest income | ||
| Insurance fee earned | ||
| Fee and commission received | ||
| 2. Total business cost | 1,281,585,400.17 | 1,172,057,419.48 |
| Incl. Business cost | 1,066,065,970.56 | 935,486,175.73 |
| Interest expense | ||
| Fee and commission paid | ||
| Insurance discharge payment | ||
| Net claim amount paid | ||
| Net insurance policy |
| reserves provided | ||
| Insurance policy dividend paid | ||
| Reinsurance expenses | ||
| Taxes and surcharges | 41,481,000.07 | 101,204,195.03 |
| Sales expense | 27,175,638.50 | 27,060,141.24 |
| Administrative expense | 82,678,777.56 | 66,539,185.89 |
| R&D cost | 14,702,673.12 | 7,995,399.91 |
| Financial expenses | 49,481,340.36 | 33,772,321.68 |
| Including: interest cost | 40,476,886.48 | 32,139,251.82 |
| Interest income | 2,439,090.91 | 3,715,935.93 |
| Add: other gains | 4,001,450.51 | 2,699,191.58 |
| Investment gains (“-” for loss) | 4,056,397.16 | 26,244,762.41 |
| Incl. Investment gains from affiliates and joint ventures | -325,733.55 | -1,071,000.77 |
| Financial assets derecognised as a result of amortized cost ("-" for loss) | ||
| Exchange gains ("-" for loss) | ||
| Net open hedge gains (“-” for loss) | ||
| Gains from change of fair value (“-“ for loss) | 121,506.67 | -8,896,637.25 |
| Credit impairment ("-" for loss) | -4,369,660.38 | |
| Investment impairment loss ("-" for loss) | -1,854,963.05 | |
| Investment gains ("-" for loss) | -27,108.78 | -1,551,865.58 |
| 3. Operational profit ("-" for loss) | 148,088,132.00 | 286,633,965.16 |
| Plus: non-operational income | 4,873,892.15 | 7,066,038.41 |
| Less: non-operational expenditure | 378,565.80 | 522,160.43 |
| 4. Gross profit ("-" for loss) | 152,583,458.35 | 293,177,843.14 |
| Less: Income tax expenses | 24,019,259.71 | 63,046,179.95 |
| 5. Net profit ("-" for net loss) | 128,564,198.64 | 230,131,663.19 |
| (1) By operating consistency | ||
| 1. Net profit from continuous | 128,570,716.39 | 230,131,663.19 |
| operation ("-" for net loss) | ||
| 2. Net profit from discontinuous operation ("-" for net loss) | -6,517.75 | |
| (2) By ownership | ||
| 1. Net profit attributable to the owners of parent company | 128,581,755.01 | 230,131,663.19 |
| 2. Minor shareholders’ equity | -17,556.37 | |
| 6. After-tax net amount of other misc. incomes | 1,389,774.33 | -1,879,756.17 |
| After-tax net amount of other misc. incomes attributed to parent's owner | 1,389,774.33 | -1,879,756.17 |
| (1) Other misc. incomes that cannot be re-classified into gain and loss | ||
| 1. Re-measure the change in the defined benefit plan | ||
| 2. Other comprehensive income that cannot be transferred to profit or loss under the equity method | ||
| 3. Fair value change of investment in other equity tools | ||
| 4. Fair value change of the company's credit risk | ||
| 5. Others | ||
| (2) Other misc. incomes that will be re-classified into gain and loss | 1,389,774.33 | -1,879,756.17 |
| 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. Change in the fair value of financial asset for sale | ||
| 4. Gains and losses from changes in fair value of available-for-sale financial assets | ||
| 5. Held-to-mature investment reclassified as gain and loss in the financial assets for sales | ||
| 6. Other credit investment |
| credit impairment provisions | ||
| 7. Cash flow hedge reserve | 1,396,635.00 | -1,839,001.25 |
| 8. Translation difference of foreign exchange statement | -6,860.67 | -40,754.92 |
| 9. Others | ||
| After-tax net of other misc. income attributed to minority shareholders | ||
| 7. Total of misc. incomes | 129,953,972.97 | 228,251,907.02 |
| Total of misc. incomes attributable to the owners of the parent company | 129,971,529.34 | 228,251,907.02 |
| Total misc gains attributable to the minor shareholders | -17,556.37 | |
| 8. Earnings per share: | ||
| (1) Basic earnings per share | 0.11 | 0.19 |
| (2) Diluted earnings per share | 0.11 | 0.19 |
Net profit contributed by entities merged under common control in the report period was RMB0.00, net profit realized by partiesmerged 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 2019 | H1 2018 |
| 1. Turnover | 17,142,022.88 | 15,112,290.20 |
| Less: Operation cost | 3,496,588.06 | 673,578.25 |
| Taxes and surcharges | 645,703.49 | 650,802.82 |
| Sales expense | ||
| Administrative expense | 11,286,569.85 | 10,133,470.85 |
| R&D cost | ||
| Financial expenses | 21,369,380.01 | 7,548,692.03 |
| Including: interest cost | 17,322,986.12 | 8,550,029.19 |
| Interest income | 351,128.89 | 1,581,410.05 |
| Add: other gains | 234,066.99 | 114,556.59 |
| Investment gains (“-” for loss) | 1,155,183.42 | 8,138,483.22 |
| 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) | -3,429,128.73 | |
| Credit impairment ("-" for loss) | 4,732.39 | |
| Investment impairment loss ("-" for loss) | -98,676.88 | |
| Investment gains ("-" for loss) | -574.06 | |
| 2. Operational profit (“-” for loss) | -18,262,235.73 | 830,406.39 |
| Plus: non-operational income | 13,947.68 | 258,644.66 |
| Less: non-operational expenditure | 106,388.64 | 738.00 |
| 3. Gross profit (“-” for loss) | -18,354,676.69 | 1,088,313.05 |
| Less: Income tax expenses | -4,545,338.46 | 1,582,341.85 |
| 4. Net profit (“-” for net loss) | -13,809,338.23 | -494,028.80 |
| (1) Net profit from continuous operation ("-" for net loss) | -13,809,338.23 | -494,028.80 |
| (2) Net profit from discontinuous operation ("-" for net loss) | ||
| 5. After-tax net amount of other misc. incomes | ||
| (1) Other misc. incomes that cannot be re-classified into gain and loss | ||
| 1. Re-measure the change in the defined benefit plan | ||
| 2. Other comprehensive income that cannot be transferred to profit or loss under the equity method | ||
| 3. Fair value change of investment in other equity tools | ||
| 4. Fair value change of the company's credit risk | ||
| 5. Others | ||
| (2) Other misc. incomes that will |
| be re-classified into gain and loss | ||
| 1. Other comprehensive income that can be transferred to profit or loss under the equity method | ||
| 2. Fair value change of other debt investment | ||
| 3. Change in the fair value of financial asset for sale | ||
| 4. Gains and losses from changes in fair value of available-for-sale financial assets | ||
| 5. Held-to-mature investment reclassified as gain and loss in the financial assets for sales | ||
| 6. Other credit investment credit impairment provisions | ||
| 7. Cash flow hedge reserve | ||
| 8. Translation difference of foreign exchange statement | ||
| 9. Others | ||
| 6. Total of misc. incomes | -13,809,338.23 | -494,028.80 |
| 7. Earnings per share: | ||
| (1) Basic earnings per share | ||
| (2) Diluted earnings per share |
5. Consolidated Cash Flow Statement
In RMB
| Item | H1 2019 | H1 2018 |
| 1. Net cash flow from business operations: | ||
| Cash received from sales of products and providing of services | 1,201,792,721.87 | 1,344,633,305.24 |
| Net increase of customer deposits and capital kept for brother company | ||
| Net increase of loans from central bank | ||
| Net increase of inter-bank loans from other financial bodies |
| Cash received against original insurance contract | ||
| Net cash received from reinsurance business | ||
| Net increase of client deposit and investment | ||
| Cash received as interest, processing fee, and commission | ||
| Net increase of inter-bank fund received | ||
| Net increase of repurchasing business | ||
| Net cash received from trading securities | ||
| Tax refunded | 1,495,878.35 | 876,405.15 |
| Other cash received from business operation | 48,007,747.43 | 243,292,723.31 |
| Sub-total of cash inflow from business operations | 1,251,296,347.65 | 1,588,802,433.70 |
| Cash paid for purchasing products and services | 977,060,414.15 | 956,677,112.92 |
| 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 financial assets held for trading purposes | ||
| 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 | 162,220,114.55 | 141,086,415.75 |
| Taxes paid | 177,525,390.09 | 208,947,437.06 |
| Other cash paid for business activities | 307,215,431.97 | 313,517,735.61 |
| Sub-total of cash outflow from business operations | 1,624,021,350.76 | 1,620,228,701.34 |
| Cash flow generated by business operations, net | -372,725,003.11 | -31,426,267.64 |
| 2. Cash flow generated by investment: | ||
| Cash received from investment recovery | 2,093,521,250.01 | 4,675,800,000.00 |
| Cash received as investment profit | 21,362,317.22 | 28,989,224.36 |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 13,165,854.60 | 9,501,692.00 |
| Net cash received from disposal of subsidiaries or other operational units | ||
| Other investment-related cash received | ||
| Sub-total of cash inflow generated from investment | 2,128,049,421.83 | 4,714,290,916.36 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 90,816,069.59 | 45,443,864.13 |
| Cash paid as investment | 2,555,019,000.00 | 4,712,583,785.00 |
| Net increase of loan against pledge | ||
| Net cash paid for acquiring subsidiaries and other operational units | 61,934,830.31 | |
| Other cash paid for investment | ||
| Subtotal of cash outflows | 2,707,769,899.90 | 4,758,027,649.13 |
| Cash flow generated by investment activities, net | -579,720,478.07 | -43,736,732.77 |
| 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 | 800,000,000.00 | 508,000,000.00 |
| Cash received from bond placing | ||
| Other cash received from financing activities | 39,406.61 | |
| Subtotal of cash inflow from financing activities | 800,039,406.61 | 508,000,000.00 |
| Cash paid to repay debts | 108,000,000.00 | 200,000,000.00 |
| Cash paid as dividend, profit, or interests | 275,410,279.99 | 213,616,393.31 |
| Incl. Dividend and profit paid by subsidiaries to minority shareholders | ||
| Other cash paid for financing activities | 40,000,000.00 | |
| Subtotal of cash outflow from financing activities | 423,410,279.99 | 413,616,393.31 |
| Net cash flow generated by financing activities | 376,629,126.62 | 94,383,606.69 |
| 4. Influence of exchange rate changes on cash and cash equivalents | -229,009.27 | 1,005,803.87 |
| 5. Net increase in cash and cash equivalents | -576,045,363.83 | 20,226,410.15 |
| Plus: Balance of cash and cash equivalents at the beginning of term | 956,190,890.68 | 931,285,535.55 |
| 6. Balance of cash and cash equivalents at the end of the period | 380,145,526.85 | 951,511,945.70 |
6. Cash Flow Statement of the Parent Company
In RMB
| Item | H1 2019 | H1 2018 |
| 1. Net cash flow from business operations: | ||
| Cash received from sales of products and providing of services | 14,039,967.56 | 147,110,597.39 |
| Tax refunded | ||
| Other cash received from business operation | 1,674,530,421.33 | 882,838,625.05 |
| Sub-total of cash inflow from business operations | 1,688,570,388.89 | 1,029,949,222.44 |
| Cash paid for purchasing products and services | 1,824,577.30 | 409,933.49 |
| Cash paid to and for the staff | 8,465,407.93 | 7,664,913.27 |
| Taxes paid | 1,250,265.96 | 14,786,626.11 |
| Other cash paid for business activities | 2,021,264,885.71 | 1,276,945,197.63 |
| Sub-total of cash outflow from business operations | 2,032,805,136.90 | 1,299,806,670.50 |
| Cash flow generated by business operations, net | -344,234,748.01 | -269,857,448.06 |
| 2. Cash flow generated by investment: | ||
| Cash received from investment recovery | 710,000,000.00 | 1,879,880,000.00 |
| Cash received as investment profit | 1,155,183.42 | 9,159,483.22 |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | ||
| Net cash received from disposal of subsidiaries or other operational units | ||
| Other investment-related cash received | 10,000,000.00 | |
| Sub-total of cash inflow generated from investment | 711,155,183.42 | 1,899,039,483.22 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 50,698.00 | 421,910.00 |
| Cash paid as investment | 746,000,001.00 | 1,917,870,000.00 |
| Net cash paid for acquiring subsidiaries and other operational units | ||
| Other cash paid for investment | ||
| Subtotal of cash outflows | 746,050,699.00 | 1,918,291,910.00 |
| Cash flow generated by investment activities, net | -34,895,515.58 | -19,252,426.78 |
| 3. Cash flow generated by financing activities: | ||
| Cash received from investment | ||
| Cash received from borrowed loans | 400,000,000.00 | 500,000,000.00 |
| Cash received from bond placing | ||
| Other cash received from financing activities | 39,406.61 | |
| Subtotal of cash inflow from financing activities | 400,039,406.61 | 500,000,000.00 |
| Cash paid to repay debts | ||
| Cash paid as dividend, profit, or interests | 241,065,709.32 | 180,947,316.65 |
| Other cash paid for financing activities |
| Subtotal of cash outflow from financing activities | 241,065,709.32 | 180,947,316.65 |
| Net cash flow generated by financing activities | 158,973,697.29 | 319,052,683.35 |
| 4. Influence of exchange rate changes on cash and cash equivalents | 405.76 | |
| 5. Net increase in cash and cash equivalents | -220,156,160.54 | 29,942,808.51 |
| Plus: Balance of cash and cash equivalents at the beginning of term | 281,594,621.80 | 310,049,329.68 |
| 6. Balance of cash and cash equivalents at the end of the period | 61,438,461.26 | 339,992,138.19 |
7. Statement of Change in Owners’ Equity (Consolidated)
Amount of the Current Term
In RMB
| Item | H1 2019 | ||||||||||||||
| Owners’ Equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||||
| Share capital | Other equity tools | Capital reserves | Less: Shares in stock | Other miscellaneous income | Special reserves | Surplus reserves | Common risk provisions | Retained profit | Others | Subtotal | |||||
| Preferred share | Perpetual bond | Others | |||||||||||||
| 1. Balance at the end of last year | 1,155,481,686.00 | 1,454,191.59 | 10,831,437.66 | 7,382,087.59 | 120,475,221.40 | 3,921,225,872.96 | 5,195,187,621.88 | 5,195,187,621.88 | |||||||
| Plus: Changes in accounting policies | -5,166,425.58 | 524,860.03 | 16,171,320.58 | 11,529,755.03 | 11,529,755.03 | ||||||||||
| Correction of previous errors | |||||||||||||||
| Consolidation of entities under common control | |||||||||||||||
| Others | |||||||||||||||
| 2. Balance at the beginning of current year | 1,155,481,686.00 | 1,454,191.59 | 10,831,437.66 | 2,215,662.01 | 121,000,081.43 | 3,937,397,193.54 | 5,206,717,376.91 | 5,206,717,376.91 | |||||||
| 3. Change amount in the current period (“-“ for decrease) | -32,097,497.00 | -10,831,437.66 | 1,389,774.33 | -66,957,886.36 | -96,095,082.78 | -182,929,254.15 | 50,345,533.53 | -132,583,720.62 | |||||||
| (1) Total of misc. incomes | 1,389,774.33 | 128,581,755.01 | 129,971,529.34 | -17,556.37 | 129,953,972.97 | ||||||||||
| (2) Investment or decreasing of capital by owners | -32,097,497.00 | -10,831,437.66 | -66,957,886.36 | -88,223,945.70 | 50,363,089.90 | -37,860,855.80 | |||||||||
| 1. Common shares invested by owners | -32,097,497.00 | -10,831,437.66 | -66,957,886.36 | -88,223,945.70 | 50,363,089.90 | -37,860,855.80 | |||||||||
| 2. Capital contributed by other equity instrument holders | |||||||||||||||
| 3． Amount of shares paid and accounted as owners' equity | |||||||||||||||
| 4. Others | |||||||||||||||
| (3) Profit allotment | -224,676,837.80 | -224,676,837.80 | -224,676,837.80 | ||||||||||||
| 1. Provision of surplus reserves | |||||||||||||||
| 2. Common risk provision | |||||||||||||||
| 3． Distribution to owners (or shareholders) | -224,676,837.80 | -224,676,837.80 | -224,676,837.80 |
| 4. Others | |||||||||||||||
| (4) Internal transferring of owners’ equity | |||||||||||||||
| 1. Capitalizing of capital reserves (or share capital) | |||||||||||||||
| 2. Capitalizing of surplus reserves (or share capital) | |||||||||||||||
| 3. Surplus reserves used to cover losses | |||||||||||||||
| 4. Retained gain transferred due to change in set benefit program | |||||||||||||||
| 5. Other miscellaneous income | |||||||||||||||
| 6. Others | |||||||||||||||
| (5) Special reserves | |||||||||||||||
| 1. Provided this year | |||||||||||||||
| 2. Used this period | |||||||||||||||
| (6) Others | |||||||||||||||
| 4. Balance at the end of this period | 1,123,384,189.00 | 1,454,191.59 | 3,605,436.34 | 54,042,195.07 | 3,841,302,110.76 | 5,023,788,122.76 | 50,345,533.53 | 5,074,133,656.29 |
Amount of the Previous Term
In RMB
| Item | H1 2018 | ||||||||||||
| Owners’ Equity Attributable to the Parent Company | Minor shareho | Total of owners’ | |||||||||||
| Share | Other equity tools | Capital | Less: | Other | Specia | Surplu | Comm | Retain | Others | Subtot | |||
| capital | Preferred share | Perpetual bond | Others | reserves | Shares in stock | miscellaneous income | l reserves | s reserves | on risk provisions | ed profit | al | lders’ equity | equity | ||
| 1. Balance at the end of last year | 1,183,642,254.00 | 72,829,484.96 | 8,585,847.99 | 110,690,396.65 | 1,863,191,218.58 | 3,238,939,202.18 | 3,238,939,202.18 | ||||||||
| Plus: Changes in accounting policies | |||||||||||||||
| Correction of previous errors | |||||||||||||||
| Consolidation of entities under common control | |||||||||||||||
| Others | |||||||||||||||
| 2. Balance at the beginning of current year | 1,183,642,254.00 | 72,829,484.96 | 8,585,847.99 | 110,690,396.65 | 1,863,191,218.58 | 3,238,939,202.18 | 3,238,939,202.18 | ||||||||
| 3. Change amount in the current period (“-“ for decrease) | -1,879,756.17 | 52,585,325.09 | 50,705,568.92 | 50,705,568.92 | |||||||||||
| (1) Total of misc. incomes | -1,879,756.17 | 230,131,663.19 | 228,251,907.02 | 228,251,907.02 | |||||||||||
| (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 allotment | -177,546,338.10 | -177,546,338.10 | -177,546,338.10 | ||||||||||||
| 1. Provision of surplus reserves | |||||||||||||||
| 2. Common risk provision | |||||||||||||||
| 3. Distribution to owners (or shareholders) | -177,546,338.10 | -177,546,338.10 | -177,546,338.10 | ||||||||||||
| 4. Others | |||||||||||||||
| (4) Internal transferring of owners’ equity | |||||||||||||||
| 1. Capitalizing of capital reserves (or share capital) | |||||||||||||||
| 2. Capitalizing of surplus reserves (or share capital) | |||||||||||||||
| 3. Surplus reserves used to cover losses | |||||||||||||||
| 4. Retained gain transferred due to change in set benefit program |
| 5. Other miscellaneous income | |||||||||||||||
| 6. Others | |||||||||||||||
| (5) Special reserves | |||||||||||||||
| 1. Provided this year | |||||||||||||||
| 2. Used this period | |||||||||||||||
| (6) Others | |||||||||||||||
| 4. Balance at the end of this period | 1,183,642,254.00 | 72,829,484.96 | 6,706,091.82 | 110,690,396.65 | 1,915,776,543.67 | 3,289,644,771.10 | 3,289,644,771.10 |
8. Statement of Change in Owners’ Equity (Parent Company)
Amount of the Current Term
In RMB
| Item | H1 2019 | |||||||||||
| Share capital | Other equity tools | Capital reserves | Less: Shares in stock | Other miscellaneous income | Special reserves | Surplus reserves | Retained profit | Others | Total of owners’ equity | |||
| Preferred share | Perpetual bond | Others | ||||||||||
| 1. Balance at the end of last year | 1,155,481,686.00 | 360,835.52 | 10,831,437.66 | 8,756,553.46 | 120,475,221.40 | 504,081,999.00 | 1,778,324,857.72 | |||||
| Plus: Changes in accounting policies | -5,166,425.58 | 524,860.03 | 4,723,740.20 | 82,174.65 | ||||||||
| Correction of previous errors | ||||||||||||
| Others | ||||||||||||
| 2. Balance at the beginning of current year | 1,155,481,686.00 | 360,835.52 | 10,831,437.66 | 3,590,127.88 | 121,000,081.43 | 508,805,739.20 | 1,778,407,032.37 | |||||
| 3. Change amount in the current period (“-“ for decrease) | -32,097,497.00 | -10,831,437.66 | -66,957,886.36 | -238,486,176.03 | -326,710,121.73 | |||||||
| (1) Total of misc. incomes | -13,809,338.23 | -13,809,338.23 | ||||||||||
| (2) Investment or decreasing of capital by owners | -32,097,497.00 | -10,831,437.66 | -66,957,886.36 | -88,223,945.70 | ||||||||
| 1. Common shares invested by owners | -32,097,497.00 | -10,831,437.66 | -66,957,886.36 | -88,223,945.70 | ||||||||
| 2. Capital contributed by other equity instrument holders | ||||||||||||
| 3. Amount of shares paid and accounted as owners' equity | ||||||||||||
| 4. Others | ||||||||||||
| (3) Profit allotment | -224,676,837.80 | -224,676,837.80 | ||||||||||
| 1. Provision of surplus reserves | ||||||||||||
| 2. Distribution to owners (or shareholders) | -224,676,837.80 | -224,676,837.80 | ||||||||||
| 3. Others | ||||||||||||
| (4) Internal transferring of owners’ equity | ||||||||||||
| 1. Capitalizing of capital reserves (or share capital) |
| 2. Capitalizing of surplus reserves (or share capital) | ||||||||||||
| 3. Surplus reserves used to cover losses | ||||||||||||
| 4. Retained gain transferred due to change in set benefit program | ||||||||||||
| 5. Other miscellaneous income | ||||||||||||
| 6. Others | ||||||||||||
| (5) Special reserves | ||||||||||||
| 1. Provided this year | ||||||||||||
| 2. Used this period | ||||||||||||
| (6) Others | ||||||||||||
| 4. Balance at the end of this period | 1,123,384,189.00 | 360,835.52 | 3,590,127.88 | 54,042,195.07 | 270,319,563.17 | 1,451,696,910.64 |
Amount of the Previous Term
In RMB
| Item | H1 2018 | |||||||||||
| Share capital | Other equity tools | Capital reserves | Less: Shares in stock | Other miscellaneous income | Special reserves | Surplus reserves | Retained profit | Others | Total of owners’ equity | |||
| Preferred share | Perpetual bond | Others | ||||||||||
| 1. Balance at the end of last year | 1,183,642,254.00 | 71,736,128.89 | 8,756,553.46 | 110,690,396.65 | 586,376,124.33 | 1,961,201,457.33 | ||||||
| Plus: Changes in accounting policies | ||||||||||||
| Correction of previous errors | ||||||||||||
| Others | ||||||||||||
| 2. Balance at the beginning of current year | 1,183,642,254.00 | 71,736,128.89 | 8,756,553.46 | 110,690,396.65 | 586,376,124.33 | 1,961,201,457.33 | ||||||
| 3. Change amount in the current period (“-“ for decrease) | -178,040,366.90 | -178,040,366.90 | ||||||||||
| (1) Total of misc. incomes | -494,028.80 | -494,028.80 | ||||||||||
| (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 allotment | -177,546,338.10 | -177,546,338.10 | ||||||||||
| 1. Provision of surplus reserves | ||||||||||||
| 2. Distribution to owners (or shareholders) | -177,546,338.10 | -177,546,338.10 | ||||||||||
| 3. Others |
| (4) Internal transferring of owners’ equity | ||||||||||||
| 1. Capitalizing of capital reserves (or share capital) | ||||||||||||
| 2. Capitalizing of surplus reserves (or share capital) | ||||||||||||
| 3. Surplus reserves used to cover losses | ||||||||||||
| 4. Retained gain transferred due to change in set benefit program | ||||||||||||
| 5. Other miscellaneous income | ||||||||||||
| 6. Others | ||||||||||||
| (5) Special reserves | ||||||||||||
| 1. Provided this year | ||||||||||||
| 2. Used this period | ||||||||||||
| (6) Others | ||||||||||||
| 4. Balance at the end of this period | 1,183,642,254.00 | 71,736,128.89 | 8,756,553.46 | 110,690,396.65 | 408,335,757.43 | 1,783,161,090.43 |
III. General InformationChina Fangda Group Co., Ltd. (hereinafter referred to as "the Company") was approved in October 1995 by the General Office of theShenzhen Municipal People's Government with the letter of Shenfu Office (1995) No. 194, in the original "Shenzhen FangdaBuilding Materials Co., Ltd." on the basis of the establishment of the fundraising method. The unified social credit code is:
91440300192448589C; registered address: Fangda Building, Kejinan Road 12, High-tech Zone, Shenzhen. Mr. Xiong Jianming isthe legal representative.The Company issued foreign currency shares (B shares) and local currency shares (A shares) and listed in November 1995 and April
1996 respectively in Shenzhen Stock Exchange.The Company has established a corporate governance structure that comprises shareholders’ meeting, board of directors andsupervisory committee. Currently, the Company sets up the President Office, Administrative Department, HR Department, EnterpriseManagement Department, Financial Department, Audit and Supervisory Department, Securities Department, Technology Departmentand IT Department and has established subsidiaries ds including Fangda Decoration, Fangda Automatic, Fangda New Material,Fangda Property and Fangda New Energy.The business nature and main business activities of the Company and its subsidiaries (hereinafter referred to as “the Group”) include
(1) curtain wall division, research and development, design, production, construction and sales of building curtain walls and materials;
(2) rail transit segment , research and development, design, production, construction and sales of subway screen doors; (3) real estatedivision, engaged in real estate development and management, property management on land legally acquired right; (4) new energydivision, photovoltaic power station, photovoltaic R&D, design, production, construction, operation and sales of building integration(BIPV).The financial statements and notes are approved at the 17th meeting of the 8th term of the Board held on August 16, 2019.
The consolidation scope for the consolidated financial statements includes the Company and all subsidiaries. During the period,Fangda Southeast Asia Company Limited was newly established, and the merger of enterprises under the same control increasedShenzhen Zhongrong Litai Investment Co., Ltd., adding 2 subsidiaries in the current consolidated statement. In this period, ShenzhenKexunda Software Co., Ltd., an indirect controlled subsidiary, was canceled, so the current consolidated statement reduced onesubsidiary. For details, please refer to the “Note VIII. Changes in the scope of consolidation” and “Note IX. Interests in otherentities”.
IV. Basis for the preparation of financial statements
1. Preparation basis
The financial statements are prepared according to the enterprise financial standard and guidelines, interpretation and other relatedregulations (“the Standard”) issued by the Ministry of Finance. In addition, the Group also complies with the "Regulations on theCompilation and Submission of Information Disclosures by Companies That Offer Securities to the Public No. 15 - GeneralProvisions on Financial Reporting" (revised in 2014) and the "Rules for the Compilation and Submission of Information Disclosuresto Companies That Publicly Issue Securities" No. 11 - Special Provisions on the Notes to the Financial Statements of CompaniesEngaged in Real Estate Development Disclosure of Financial Information.The Group prepares the financial statements based on continuous operation.The Group's auditing is based on the accrual basis. Except for some financial instruments and property held for investment, thefinancial statements are prepared based on historical costs. In case of any asset impairment, the impairment provision will be made asrequired.
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 toprepare financial statements based on continuing operations.
V. Significant Account Policies and EstimatesSpecific accounting policy and estimate prompt:
The Group determines the accounting policies and income recognition policies for investment real estate according to the productionand business features. For details, see Note V. 15 and Note V. 24.
1. Statement of compliance to the Enterprise Accounting Standard
The financial report and statements are prepared with compliance to the requirement of the Enterprise Accounting Standard. Theyreflect the financial position as of June 30, 2019, and business performance and cash flow situation in year 2019 of the Companyfrankly and completely.
2. Fiscal Period
The fiscal year of the Group is the solar calendar year, that is from January 1 to December 31.
3. Operation period
The operation period of the Group is 12 months.
4. Bookkeeping standard money
The Company, domestic subsidiaries and overseas subsidiary Shihui International Holding Co., Ltd. use RMB as bookkeepingstandard money. The overseas subsidiaries of the Company, Fangda Zhichuang Technology (Hong Kong) Co., Ltd., Fangda AustraliaPty Ltd, and Fangda Southeast Asia Co., Ltd. respectively determine Hong Kong Dollar, Australian Dollar and Vietnamese Dong inthe currency of the main economic environment in which they operate. The Group prepares financial statements in RMB.
5. Accounting treatment of the entities under common and different control
(1) Consolidation of entities under common control
Assets and liabilities obtained by the merging party are calculated at their book value with the merged parties at the merger day in theconsolidated financial statement of the merging party in addition to the adjustment made given the difference in accounting policies.The differences between the book value of net assets and the book value of consideration price (or the total of face value of shareissued) are adjusted to the capital reserve (share capital premium). If the share capital premium is not enough to offset the difference,it will be adjusted to the retained gains.Enterprise merger under common control through multiple transactionsIn separate financial statements, the initial investment cost is the book value of the merged party’s net assets that can be shared by themerging party in the consolidate financial statements of the final controlling party according to the shareholding percentage on themerging date; adjust the capital surplus (share premium) according to the difference between the initial investment cost and the bookvalue of the held investment before merger plus the book value of the consideration paid on the merger date. Where the capitalsurplus falls short, the retained income should be adjusted.
In consolidated financial statements, assets and liabilities obtained by the merging party from the merged party should be measured atthe book value in the final controlling party’s consolidated financial statements other than the adjustment made due to differences inaccounting policies; adjust the capital surplus (share premium) according to the difference between the initial investment cost and thebook value of the held investment before merger plus the book value of the consideration paid on the merger date. Where the capitalsurplus falls short, the retained income should be adjusted. Changes in recognized related profit and loss, other misc. incomes andother owner's equity between the later one of the date when the original stock equity was obtained and the date when the mergedparty and merging party become under the common control should respectively write down the retained profit in beginning of thereport period or current period’s profit or loss.
(2) Consolidation of entities under different control
For merger of entities under different control, the merger cost is the fair value of the asset paid, liability undertaken, and equitysecurities issued for exchanging of control power over the entities at the day of acquisition. On the acquisition day, the assets andliabilities (if any) acquired by the Group from the acquired party are recognized on the fair value.If the merger costs exceed the fair value of the recognizable net assets of the acquired party in the merger, it is recognized as goodwilland measured based the costs after the accumulative impairment provision is deducted; if the the fair value exceeds the costs, it isincluded in the income statement for the period after being re-examined.Where there is new or further evidence on the condition existing on the acquisition date 12 months later and adjustment needs to bemade, the good will should be adjusted and merged.
(3) Treatment of related transaction fee in enterprise merger
Agency expenses and other administrative expenses such as auditing, legal consulting, or appraisal services occurred relating to themerger of entities are accounted into current income account when occurred. The transaction fees of equity certificates or liabilitycertificates issued by the purchaser for payment for the acquisition are accounted at the initial amount of the certificates.
6. Preparation of Consolidated Financial Statements
(1) Consolidation scope
The consolidate scope of consolidated financial statements is determined based on control. Control means the power possessed by theGroup on invested entities to share variable returns by participating in related activities of the invested entities and to impact theamount of the returns by using the power. Subsidiaries are enterprises controlled by the Company.
(2) Preparation of Consolidated Financial Statements
The consolidated financial statements are prepared by the Company based on financial statements of the Company and subsidiariesand according to other related information. During preparation of consolidated financial statements, the accounting policies andperiod of the Company and subsidiaries must be the same. Major transactions and balances between companies are offset.Subsidiaries and businesses increased because of merger of enterprises under the common control during the report period aredeemed consolidated into the consolidate scope from the date of becoming controlled by the final party. The operating result and cashflows of the subsidiaries and businesses from the date of becoming controlled by the final party should be incorporated into theconsolidate income statement and consolidate cash flow statement.For subsidiaries and businesses increased because of merger of enterprises not under the common control, their incomes, expenses
and profits between the date of acquisition and end of the report period should be incorporated into the consolidated incomestatement, and the cash flows should be incorporated into the consolidated cash flow statement.The part of the shareholders’ equity in subsidiaries not owned the Company are separately listed under the shareholders’ equity asminority shareholders’ equity in the consolidated balance sheet. The part of the subsidiaries’ net profits and losses for the currentperiod that belongs to minority shareholders is listed as minority shareholders’ profits and losses under net profit in the consolidatedincome statement. If the losses of subsidiaries shared by the minority shareholders exceed the part of the owners’ equity of thesubsudiaries at the beginning of the period, the excessive part will offset the minority shareholders’ equity.
(3) Acquisition of subsidiary minority interests
The difference between the investment cost of the long-term equity obtained from acquisition of minority interests and the share ofnet assets in the subsidiary calculated continuously based on the increased shareholding percentage, and the difference between thedisposal income obtained from the partial disposal of the subsidiary’s equity investment without losing the control power and theshare of net assets in the subsidiary calculated continuously based on the increased shareholding percentage should be adjusted andconsolidated in the capital surplus in the consolidated balance sheet. Where the capital surplus falls short, the retained income shouldbe adjusted.
(4) Treatment of loss of subsidiaries’ control power
For loss of control over subsidiaries due to disposal of partial equity investment or other reasons, the remaining equity should bere-measured at the fair value on the date of loss of the control power; the sum of the consideration obtained from the disposal of stockequity and the fair value of the remaining equity, minus the sum of the share of the net assets’ book value calculated continuouslyfrom the acquisition date according to the original shareholding percentage and the goodwill should be recorded in the investmentgain of the current period of the loss of control power.Other misc. incomes related to the equity investment in the original subsidiary is transferred to the current period’s profit and losswhen the control power is losted, except for the other misc. incomes generated by remeasurement and resetting of earning plan orchange in the net assets by the invested party.
7. Recognition of cash and cash equivalents
Cash refers to cash on hand and deposits that can be used at any time for payment. Cash equivalent refers to the investments withshort term, strong liquidity and small risk of value fluctuation that are held by the Group and easily converted into cash with knownamount.
8.Foreign exchange business and foreign exchange statement translation
(1) Foreign currency business
Trades of the Group made in foreign currencies are translated into RMB basing on the spot exchange rate on the date when the tradeis conducted.At the balance sheet date, foreign currency items are translated on the spot exchange rate of the balance sheet date. The exchangedifferences caused by the difference in exchange rates on the balance sheet date and initial recognizing date or previous balance sheetdate are included in the current profits and losses. Non-monetary items accounted in foreign currency and on historical costs areexchanged 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 theaccounting standard-currency amount and the original accounting standard-currency amount are included in the current profits andlosses.
(2) Translation of foreign currency statement
On the balance sheet date, when foreign currency financial statements of overseas subsidiaries are converted, the assets and liabilitiesitems in the balance sheet are converted using the spot exchange rate on the balance sheet date. The shareholders’ equity items arecalculated as “undistributed profits”, except for other items. The spot exchange rate on the date of occurrence is used for conversion.The income and expense items in the income statement are translated using the exchange rate that is determined by the system’sreasonable method and approximate to the spot exchange rate on the transaction date.All items in the cash flow statement are converted according to the exchange rate that is determined by the system's reasonablemethod and approximate to the spot exchange rate on the day the cash flow occurs. The impact of changes in exchange rates on cashis used as a reconciliation item, which is separately presented in the cash flow statement “Items Affecting Exchange Rate Movementson Cash and Cash Equivalents”.The difference arising from the translation of the financial statements is reflected in the "Other comprehensive income" item underthe shareholders' equity item in the balance sheet.When foreign operations are disposed of and the control rights are lost, the difference in foreign currency statements related to theoverseas operations that are listed in the shareholders' equity items in the balance sheet is transferred to the profit or loss for thecurrent 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 equityinstruments.
(1) Classification and measurement of financial assets and financial liabilities
Financial assets and financial liabilities are recognized in the balance sheet when the Company becomes a party to thecontractual terms of the relevant financial instruments.Except for accounts receivable that do not have significant financing components, financial assets and financial liabilities aremeasured at fair value at initial recognition. For financial assets or liabilities measured at fair value with variations accounted intocurrent income account, related transaction expenses are accounted into the current income. For other financial assets or liabilities,the related transaction expenses are accounted into the initial recognized amounts. For accounts receivable that do not havesignificant financing components, the Company conducts initial measurement at the actual transaction price.
(2) Classification and subsequent measurement of financial assets
(a) Classification of financial assets
At initial recognition, the Company classifies financial assets into the following three categories based on the business model ofmanaging financial assets and the contractual cash flow characteristics of financial assets: financial assets measured at amortized costare measured at fair value and their changes are included in other Financial assets with comprehensive income 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 arereclassified on the first day of the first reporting period after the business model changes, otherwise the financial assets may not beinitially confirmed.
The financial assets that are measured at fair value through profit or loss are classified as financial assets measured at amortisedcost:
① The business model of the company's management of the financial assets is based on the collection of contractual cashflows;
② The contractual terms of the financial asset stipulate that the cash flow generated on a specific date is only the payment ofthe principal and the interest based on the outstanding principal amount.
Financial assets that meet the following conditions and are not designated as at fair value through profit or loss are classified asfinancial assets at fair value through other comprehensive income:
① The business model of the company's management of the financial assets is aimed at both the collection of contractual cashflows and the sale of the financial assets;
② The contractual terms of the financial asset stipulate that the cash flow generated on a specific date is only the payment ofthe principal and the interest based on the outstanding principal amount.
For non-trading equity instrument investments, the Company may, at the time of initial recognition, arbitrarily designate it as afinancial asset that is measured at fair value and whose changes are included in other comprehensive income. The designation isbased on a single investment and the relevant investment is in line with the definition of the equity instrument from the issuer'sperspective.
The financial assets are measured at fair value through profit or loss. At the time of initial recognition, if the accountingmismatch can be eliminated or significantly reduced, the Company can arbitrarily designate financial assets that should be measuredat amortized cost or measured at fair value through other comprehensive income Financial assets measured and their changes areincluded in the current profit and loss.
The business model for managing financial assets refers to how the company manages financial assets to generate cash flows.The business model determines whether the cash flow of financial assets managed by the company is based on contract cash flow,financial assets sold or both. The Company determines the business model for managing financial assets based on objective facts andbased on the specific business objectives of financial assets management determined by key management personnel.
(b) Subsequent measurement of financial assets
① Financial assets measured at fair value with variations accounted into current income account
After the initial recognition, the financial assets are subsequently measured at fair value, and the gains or losses (includinginterest and dividend income) are included in the current profit and loss, unless the financial assets are part of the hedgingrelationship.
② Equity instrument investment measured at fair value and whose changes are included in other comprehensive income
After initial recognition, the financial assets of this type are subsequently measured at fair value. Dividend income is includedin profit or loss, and other gains or losses are included in other comprehensive income. When the confirmation is terminated, theaccumulated gains or losses previously included in other comprehensive income are transferred from other comprehensive incomeand included in retained earnings.
③ Financial assets measured at amortized cost
After initial recognition, such financial assets are measured at amortized cost using the effective interest method. Gains orlosses arising from financial assets that are measured at amortised cost and are not a component of any of the hedges are recognizedin profit or loss in
(3) Classification and subsequent measurement of financial liabilities
The Group classifies financial liabilities into financial liabilities measured at fair value through profit or loss and financialliabilities measured at amortised cost.
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) andfinancial 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.
Financial liabilities measured at amortized cost
After initial recognition, other financial liabilities are measured at amortized cost using the effective interest method.
(4) Presentation of financial instruments
Financial assets and financial liabilities are presented separately in the balance sheet and are not offset by each other. However,if the following conditions are met, the net amount offset by each other is listed in the balance sheet:
① The company has a statutory right to offset the confirmed amount, and such legal right is currently enforceable;
② The company plans to settle the net assets or realize the financial assets and liquidate the financial liabilities at the sametime.
(5) Final recognition of financial instruments
The Company derecognises the financial asset when one of the following conditions is met:
① The contractual right to receive the cash flows of the financial assets is terminated;
② The financial assets have been transferred, and the company transfers almost all the risks and rewards of ownership of thefinancial assets to the transferee;
③ The financial assets have been transferred. Although the company has neither transferred nor retained almost all the risksand rewards of ownership of financial assets, it does not retain control over the financial assets.
If the financial assets transfer as a whole meets the conditions for derecognition, the difference between the carrying amount ofthe transferred financial assets on the date of derecognition and the consideration received from the transfer of the financial assets isrecognized in profit or loss.
If the current obligation of a financial liability (or part of it) has been discharged, the company derecognises the financialliability (or part of the financial liability).
(6) Impairment of financial assets
On the basis of expected credit losses, the Company conducts impairment test on financial assets and contract assets measuredat amortized cost and confirms impairment provision.
Other financial assets held at fair value through the Company are not subject to the expected credit loss model, including equityinstrument investments that are measured at fair value through profit or loss, and are designated at fair value through Income fromequity instrument investments, as well as derivative financial assets
(6.1) Expected credit loss measurementThe expected credit loss refers to the weighted average of the credit losses of financial instruments that are weighted by the riskof default. Credit loss refers to the difference between all contractual cash flows receivable from the contract and all cash flowsexpected to be received by the Company at the original actual interest rate, that is, the present value of all cash shortages.In measuring the expected credit losses, the longest period of consideration for the company is the longest contract period forwhich the company is exposed to credit risk (including consideration of renewal options).The expected lifetime credit loss is the expected credit loss due to all possible default events during the entire expected life ofthe financial instrument.Expected credit losses in the next 12 months are expected to result from possible defaults in financial instruments within 12months 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.
For accounts receivable and contract assets, the Company always measures its loss preparation in accordance with the amountof expected credit losses for the entire life. The Company calculates the expected credit losses of the above financial assets based onhistorical credit loss experience, industry data information, and usage preparation matrix. The relevant historical experience is basedon the specific factors of the receivables on the balance sheet date and the current conditions and future economic conditions. Theassessment is adjusted.Except for accounts receivable and contract assets, the Company measures its loss for financial instruments that meet thefollowing conditions in accordance with the amount of expected credit losses in the next 12 months, and the other financialinstruments are equivalent to the entire life expectancy. The amount of credit loss is measured by its loss:
① The financial instrument has only a low credit risk on the balance sheet date; or
② The credit risk of the financial instrument has not increased significantly since the initial confirmation.(6.2) 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 theshort 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 financialinstrument is considered to have a lower credit risk.
(3) Substantially increased credit risks
The Company determines the relative risk of default risk of the financial instrument by comparing the risk of default of thefinancial instrument on the balance sheet date with the risk of default on the initial recognition date to assess the credit risk of thefinancial instrument from initial recognition.
In determining whether the credit risk has increased significantly since the initial recognition, the Company considersreasonable and evidenced information, including forward-looking information, that can be obtained without unnecessary additionalcosts or effort. The information considered by the company includes:
1.The debtor’s failure to pay the principal and interest on the contractual maturity date;
2.A serious deterioration in the external or internal credit rating (if any) of the financial instrument that has occurred or isexpected;
3.A serious deterioration in the operating results of the debtor that has occurred or is expected;
4.Changes in existing or anticipated technical, market, economic or legal circumstances that will have a material adverse effecton the debtor's ability to repay the Group.
Based on the nature of financial instruments, the Group assesses whether credit risk has increased significantly on the basis of asingle financial instrument or combination of financial instruments. When conducting an assessment based on a combination offinancial instruments, the Group can classify financial instruments based on common credit risk characteristics, such as overdueinformation and credit risk ratings.
If the overdue period exceeds 30 days, the company has determined that the credit risk of financial instruments has increased
significantly. If the object of the receivable is unlikely to pay its full amount to the company or it is overdue for more than 90 days, itis considered that the default has occurred.(6.4) Financial assets with credit impairmentOn the balance sheet date, the Company assesses whether the financial assets measured at amortized cost have incurred creditimpairment. When one or more events that adversely affect the expected future cash flows of a financial asset occur, the financialasset becomes a financial asset that has suffered a credit impairment. Evidence that credit impairment has occurred in financial assetsincludes the following observable information:
① Severe financial difficulties in the issuer or debtor;
② The debtor violates the contract or defaults or delays the payment of the interest or principal;
③ The Company gives concessions to the debtor in any other circumstances for economic or contractual considerationsrelating to the financial difficulties of the debtor;
④ The debtor may go bankruptcy or conduct other financial reorganization;
⑤ The financial difficulties of the issuer or the debtor have caused the active market of the financial asset to disappear.(6.5) 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-measuresthe expected credit losses on each balance sheet date, and the increase or reversal of the loss provision resulting therefrom is includedas an impairment loss or gain. Current profit and loss. For financial assets measured at amortized cost, the loss is prepared to offsetthe carrying amount of the financial asset presented in the balance sheet.(6.6) Write-off
如果本公司不再合理预期金融资产合同现金流量能够全部或部分收回，则直接减记该金融资产的账面余额。 Suchwrite-off constitute the derecognition of related financial assets. This usually occurs when the company determines that the debtorhas no assets or sources of income that generate sufficient cash flow to cover the amount that will be written down. However,according to the company's procedures for recovering the due amount, the financial assets that have been written down may still beaffected by the execution activities.
If the financial assets that have been written down are recovered in the future, the reversal of the impairment loss is included inthe profit or loss of the current period.
(7) Equity instruments
The consideration received by the Company for the issuance of equity instruments, after deducting transaction costs, isincluded in shareholders' equity. Repurchase the consideration and transaction fees paid by the Company's equity instruments toreduce shareholders' equity.
10. Notes receivable
For notes receivable, whether or not it contains significant financing components, the company always measures its losspreparation according to the amount of expected credit losses for the entire duration of the period, and the resulting increase or lossof losses is formed as an impairment loss or Gains are included in the current profit and loss.
The Company's evaluation of this category of funds has a lower credit risk. If there is objective evidence that a note receivablehas been credit-depreciated, the Company makes provision for bad debts and confirms expected credit losses for the notes receivable.
11. Account receivable
The Company considers all reasonable and evidence-based information, estimates the expected credit losses of receivables in asingle or combined manner, and adopts a simplified model of expected credit losses, always measuring the amount of expected creditlosses equivalent to the entire duration of the period. Loss preparation.
(1) Account receivable for which bad debt provision is made by item
(1.1) Account receivable with major individual amount and bad debt provision provided individually
| Judging basis or standard of major individual amount | For the current year, the Company recognizes project receivables over RMB10 million (inclusive) as “individual receivable with large amount” while recognizes product receivables over RMB2 million (included) as “individual receivable with large amount”. |
| Provision method for account receivable with major individual amount and bad debt provision provided individually | The Company performs impairment examination individually on each large amount receivables, and recognizes impairment and provides bad debt provision when the impairment is recognized based on objective evidence. Those not impaired are accounted along with the minor amount receivables and recognized in risk groups. |
(1.2) Account receivable with minor individual amount and bad debt provision provided individually
| Reasons for separate bad debt provision | Long account age or deterioration of customer creditability |
| Method of bad debt provision | According to the difference between the present value of future cash flow and the book value |
(2) Recognition and providing of bad debt provisions on groups
| Group | Method of bad debt provision |
| Account age | Aging method |
| Combination of assets state (receivables within consolidation, receivables of real estate property sold with bank mortgage and accounts between the Company and partners) | Not provided |
Receivables adopting the aging method in the group:
| Age | Providing rate for receivable account | ||
| Engineering | Real estate | Others | |
| Within 1 year (inclusive) | 1.68% | 1.00% | 1.23% |
| 1-2 years | 5.41% | 5.00% | 3.85% |
| 2－3年 | 15.99% | 5.00% | 15.95% |
| 3－4年 | 30.15% | 15.00% | 33.98% |
| 4－5年 | 53.13% | 15.00% | 76.41% |
| Over 5 years | 100.00% | 15.00% | 100.00% |
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information DisclosureGuideline No.6 – Listed Companies Engaged in Decoration Business.
12. Other receivables
The Company measures its loss for financial instruments that meet the following conditions in accordance with the amount ofexpected credit losses in the next 12 months, and the other financial instruments are equivalent to the entire life expectancy. Theamount of credit loss is measured by its loss:
① The amount has only a low credit risk on the balance sheet date; or
② The credit risk of the amount has not increased significantly since the initial confirmation.
For details of the specific accounting judgment processing methods, please refer to "V. 9. Financial Instruments (6) Impairmentof Financial Assets" in this note.
13. Inventories
Whether the Company needs to comply with disclosure requirements of special industriesYesDecoration
(1) Classification of inventories
The Group’s inventories include purchased materials, raw materials, low-value consumables, packing materials, OEM materials,products in process, semi-finished goods, finished goods, inventory, development costs, development products and construction inprocess.
(2) Valuation method for issuing inventory
Inventories are measured at cost when procured. Raw materials, products in process, commodity stocks in transit and sel-madesemi-finished products are measured by the weighted average method.Construction contracts are measured by the effective cost, including direct and indirect expenses generated before the contracts arefulfilled. Costs generated and recognized accumulatively by construction in process and settled payment are listed in the balancesheet as offset net amounts. The excessive part of the sum of the generated costs and recognized gross profit (loss) over the settled
payment is listed inventories; the excessive part of the settled payment over the sum of the generated costs and recognized grossprofit (loss) is listed as the prepayment received.Travel and bidding expenses generated by execution of contracts, if they can be separated and reliably measured and it is likely toenter into contracts, are accounted as the contract cost when the contracts are entered into; or into the current gain/loss account if theconditions are not met.The development costs include land transfer payment, infrastructure and facility costs, installation engineering costs, borrows beforecompletion of the development and other costs during the development process. The actual costs of the development product ispriced using the separate pricing method.
(3) Recognition of inventory realizable value and providing of impairment provision
The realizable net value of inventory is the estimated sales prices of the inventory less costs to be incurred until the completion,estimated sales expense and taxes. The realizable net value of inventory should be recognized based on solid evidence with thepurpose of the inventory and after-balance-sheet-date events taken into consideration.If the inventory cost is higher than the realizable net value on the balance sheet date, the inventory depreciation provision should bemade. The Group makes inventory depreciation provision for separate or a type of inventory. If factors affecting the inventory valuedisappear on the balance sheet date, the depreciation provision made should be reversed to the original value.
(4) Inventory system
The Group uses perpetual inventory system.
(5) Amortizing of low-value consumables and packaging materials
Low-value consumables are amortized on on-off amortization basis at using.
14. Long-term share equity investment
The Group's long-term equity investment includes control on invested entities and significant impacts on equity investment. Investedentities on which the Group has significant impacts are associates of the Group.
(1) Initial investment cost determination
Long-term equity investment generated by enterprise merger: for long-term equity investment obtained by merger of enterprisesunder common control, the obtained share of book value of the interests of the merged party’s owner in the consolidate financialstatements on the merger date is the investment costs; for long-term equity investment obtained by merger of enterprises not undercommon control, the merger cost is the investment cost.For long-term equity investment obtained by cash, the actually paid consideration is the initial investment cost.
(2) Subsequent measurement and recognition of gain/loss
Investments by the Company in subsidiaries are calculated using the cost method; in joint ventures are calculated using the equitymethod.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 asinvestment gains in the current gain/loss account.When the equity method is used to measure long-term equity investment, the investment cost will not be adjusted if the investmentcost of the long-term equity investment is larger than the share of fair value of the recognizable assets of the invested entity. When itis smaller than the share of fair value of the recognizable assets of the invested entity, the book value will be adjusted and thedifference is included in the current gains of the investment.When the equity method is used, the current investment gain is the share of the net gain realized in the current year that can be sharedor borne, recognized as investment gain and other misc. income. The book value of the long-term equity investment is adjustedaccordingly. The book value of the long-term equity investment should be accordingly decreased based on the share of profit or cashdividend announced by the invested entity; according to other changes in the owner’s equity except for net profit and loss, other miscincome and profit distribution of the invested entity, adjust the book value of the long-term equity investment and record it in thecapital surplus (other capital surplus). When the share of the net gains that can be enjoyed is recognized, it is recognized after the netprofit of the invested entity is adjusted based on the fair value of the recognizeable assets of the invested entity according to theCompany's accounting policies and accounting period.Where substantial influence on invested entities is imposed or joint control is implemented due to increase in investment, the sum ofthe fair value of the original equity and increased investment on the conversion date is the initial investment cost under the equitymethod. The difference between the fair value and book value of the original equity on the conversion date and the accumulativechange in the fair value originally accounted in other misc. income should be transferred into the profit and loss of the current periodusing the equity method.Where joint control or substantial influence on invested entities is lost due to disposal of part of investment, the remaining equityafter the disposal should be treated according to the Enterprise Accounting Standard No.22 – Recognition and Measurement ofFinancial Instruments from the date of losing the joint control or substantial influence. The difference between the fair value andbook value should be accounted the profit and loss of the current period. For other misc. incomes of original share equity investmentdetermined using the equity method, when the equity method is no longer used, it should be treated based on the same basis of thetreatment of related assets or liability of the invested entities; the other owners' interests related to the original share equityinvestment should be transferred to gain/loss of the current period.Where the disposal of part of the equity investment leads to loss of control on the invested entity, and the remaining equity after thedisposal can impose common control or significant impacts on the invested entity, use the equity method and make adjustment as ifthe equity method was used when the remaining equity was acquired. If not, perform accounting treatment according to provisions inthe Enterprise Accounting Standard No.22 – Recognition and Measurement of Financial Tools. The difference between the fair valueand book value on the date of losing control should be transferred into the profit and loss of this period.Where the Company’s shareholding decreases and the Company loses the control due to increased investment by another investor,but the Company can still impose common control or significant impacts on the invested entity, the share of increased net assets ofthe invested entity that can be shared by the Company should be calculated based on the new shareholding, the difference betweenthe net assets and original book value of the original long-term equity investment should be recorded in the profit and loss of thisperiod and adjusted as if equity method was used when it was acquired according to the new shareholding proportion.Internal transaction gain not realized between the Company and affiliates is measured according to the shareholding proportion andthe investment gains is recoginzied after deduction. The unrealized internal transaction loss between the Company and the investedentity is the impairment loss of transferred assets and should not be written off.
(3) Basis for recognition of major influence on invested entities
Major influence refers to the power to participate in decision-making of financial and operation policies of a company, but cannotcontrol or jointly control the making of the policies. When considering whether the Company can impose significant impacts on theinvested entity, impacts of conversion of shares with voting rights held directly or indirectly by the investor and voting rights that canbe executed in this period held by the investor and other party into shares of the invested entity should be considered.When Company directly or indirectly holds 20% (inclusive) but less than 50% of the shares with voting rights of the invested entity,it is generally considered that the Company can impose significant impacts unless there is clear evidence proving that the Companyshall not participate in the production and business decision making of the company; when the Company holds less than 20% of theshares with voting rights, it is generally not considered that the Company has significant impacts on the invested entity, unless thereis clear evidence proving the contrary.
(4) Equity investment held for sale
For the remaining equity investments not classified as assets held for sale, the equity method is adopted for accounting treatment.Equity investments classified as held for sale to associates that are no longer eligible to hold classified assets for sale areretrospectively adjusted using the equity method starting from the date that they are classified as held for sale.
(5) Impairment examination and providing of impairment provision
See Note V. 20 for the assets impairment provision method for investment in subsidiaries and joint ventures.IX. Investment real estatesMeasuring mode of investment real estateMeasurement at fair valueBasis of choosing the measurement at fair valueFor investment real estates with an active real estate transaction market and the Group can obtain market price and other informationof same or similar real estates to reasonably estimate the investment real estates’ fair value, the Group will use the fair value mode tomeasure 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 inactive markets; when no such price is available, with reference to the recent transaction prices and consideration of factors includingtransaction background, date and district to reasonably estimate the fair value; or based on the estimated lease gains and present valueof related cash flows.For investment real estate under construction (including investment real estate under construction for the first time), if the fair valuecannot be reliably determined but the expected fair value of the real estate after completion is continuously and reliably obtained, theinvestment real estate under construction is measured by cost. When the fair value can be measured reliably or after completion (theearlier one), it is measured at fair value. For an investment real estate whose fair value is proven unable to be obtained continuouslyand reliably by objective evidence, the real estate will be measured at cost basis until it is disposed and no residual value remains asassumed.The difference of the proceeds from sales, transfer, retirement or destruction of investment real estates with book value and relatedtaxes deducted is accounted into the current gain/loss account.
Investment real estate that use the cost method for further measurement adopt the straight-line depreciation provision method. SeeNote V. 20 for the provision method.
16. Fixed assets
(1) Recognition conditions
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing services, lease or foroperation & management, and have more than one accounting year of service life. The fixed assets can only be recognized heneconomic interests related to the fixed assets are very likely to flow into the company and the costs of the fixed assets can be reliablymeasured. The Group measures fixed assets at the actual costs when the fixed assets are obtained
(2) Depreciation method
| Type | Depreciation method | Service year | Residual rate | Annual depreciation rate % |
| Houses & buildings | Average age | 35-45 | 10% | 2%-2.57% |
| Mechanical equipment | Average age | 10 | 10% | 9% |
| Transportation facilities | Average age | 5 | 10% | 18% |
| Electronics and other devices | Average age | 5 | 10% | 18% |
| PV power plants | Average age | 20 | 5% | 4.75% |
17. Construction in process
The Group recognizes the cost of construction in process according to the actual construction expense, including necessaryengineering expenses, borrowing costs to be capitalized before the engineering reaches the preset service condition and other relatedcosts.Construction in process will be transferred to fixed assets when it reaches the preset service condition.See Note V. 20 for the provision method for construction in process.
18. Borrowing expenses
(1) Recognition principles for capitalization of borrowing expenses
Borrowing expenses occurred to the Group that can be accounted as purchasing or production of asset satisfying the conditions ofcapitalizing, are capitalized and accounted as cost of related asset. Borrowing expenses start to be capitalized when all of thefollowings are satisfied:
① Asset expense has already occurred. Asset expenses include cash payment, non-cash asset transferring, or undertaking of debtwith interest done for purchasing or producing of assets;
② Borrowing costs have occurred;
③ Purchasing or production activity, which is necessary for the asset to reach the useful status, has already started.
(2) Capitalization period of borrowing expenses
When the asset satisfying the capitalizing conditions has reached its usable or sellable status, capitalizing of borrowing expenses shallbe terminated. Borrowing expenses incurred after assets that meet capitalization conditions reach the service or sales conditions areaccounted into the current gain/loss account according to the actual amounts.If the construction or production of assets satisfying the capitalizing conditions is suspended abnormally for over 3 months,capitalizing of borrowing expenses shall be suspended. During the normal suspension period, borrowing expenses will be capitalizedcontinuously.
(3) Calculation of the capitalization amount of borrowing expense
Interest expenses generated by special borrowings less the interests income obtained from the deposit of unused borrowings orinvestment gains from temporary investment is capitalized; the capitalization amount for general borrowing is determined based onthe capitalization rate which is the exceeding part of the accumulative assets expense over weighted average of the assets expense ofthe special borrowing/used general borrowing. The capitalization ratio is the weighted average interest rate of general borrowings.In the capitalization period, the exchange difference of special borrowings in foreign currencies should be fully capitalized. Theexchange difference should be recorded in the profit and loss of this period.
19. Intangible assets
(1) Pricing method, service life and depreciation test
The Group’s intangible assets include land using rights, trademarks, patent, special technologies, and software.Intangible assets are initially measured at costs and the useful life will be determined when obtained. Where the useful life is limited,the intangible assets will be amortized within the predicted useful life by using the amortization method that can reflect predictedrealization way of the economic benefit of the assets; whether the realization way cannot be reliably confirmed, use the straight-linemethod. If the useful life is uncertain, the intangible assets are not amortized.Intangible assets with limited useful life are amortized as followings:
| Type | Useful life | Basis of amortization |
| Land using right | Beneficial age | Average age |
| Trademarks and patents | 10 years | Average age |
| Proprietary technology | 10 years | Average age |
| Software | 5, 10 years | Average age |
At the end of each year, the Group will reexamine the useful life and amortization basis of intangible assets with limited useful life. Ifthey change, adjust the prediction and handle it according to accounting estimate changes.
On the balance sheet day, if the intangible assets become unlikely to bring future economic benefits for the Group, transfer all theintangible assets’ book value into the current gain/loss account.See Note V. 20 for the impairment provision method for intangible assets.
(2) Accounting policies for internal R&D expenses
The Group divides internal R&D project expenses into research and development expenses.The research expenses are accounted the current gain/loss account.Development expenses can only be capitalized when the following conditions are satisfied: the technology is feasible for use or sales;there is the intention to use or sell the intangible assets; it can be proven that the product generated by the intangible assets isdemanded or the intangible assets in demanded; if the intangible is used internally, it can be proven that it is useful; with necessarytechnical and financial resources and other resources to complete the development of the intangible assets and the intangible assetscan be used or sold; the development expense can be reliably measured. If not, the development expense is accounted into the currentgain/loss account.If a research project meets the above-mentioned conditions and passes the technical and economic feasibility study, the project willenter the development stage.Expenses in the development stage capitalized are listed as development expense on the balance sheet and transferred to intangibleassets when the project reaches the useful condition.
20. Assets impairment
The Group uses the cost mode to continue measuring the assets impairment to investment real estatement, fixed assets construction inprogress, intangible assets and goodwill (except for the inventories, investment real estate measured by the fair value mode, deferredincome tax assets and financial assets). The method is determined as follows:
The Group judges whether there is a sign of impairment to assets on the balance sheet day. If such sign exists, the Group estimatesthe recoverable amount and conducts the impairment test. Impairment test is conducted annually for goodwill generated by mergersand 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 thepredicted future cash flow. The Group estimates the recoverable amount on the individual asset item basis; whether it is hard toestimate the recoverable amount on the individual asset item basis, determine the recoverable amount based on the asset group thatthe assets belong to. The assets group is determined by whether the main cash flow generated by the group is independent from thosegenerated by other assets or assets groups.When the recoverable amount of the assets or assets group is lower than its book value, the Group writes down the book value to therecoverable amount, the write-down amount is accounted into the current income account and the assets impairment provision ismade.
For goodwill impairment test, the book value of goodwill generated by mergers is amortized through reasonable measures since thepurchase day to related asset groups; those cannot be amortized to related assets groups are amortized to related combination of assetgroups. The related asset groups or combination of asset groups refer to those that can benefit from the synergistic effect of mergersand must not exceed to the reporting range determined by the Group.When the impairment test is conducted, if there is sign of impairment to the asset group or combination of asset groups related togoodwill, first perform impair test for asset group or combination of asset groups without goodwill and calculate the recoverableamount and recognize the related impairment loss. Then conduct impairment test on those with goodwill, compare the book valuewith 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.
21. Long-term amortizable expenses
The Group’s long-term amortizable expenses are measured at the actual costs and amortized averagely based on the beneficial term.For long-term amortizable expenses that are not beneficial in the subsequent account periods, the residual value is fully accountedinto the current gain/loss account.
22. Staff remuneration
(1) Accounting of operational leasing
The Group pays for the medical insurance, job injury insurance and breeding insurance and housing fund according to employees’wages and bonus and recognizes them as liabilities, which are recorded into the profit and loss or related assets costs in the currentperiod. If the liabilities cannot be fully paid within 12 months upon the end of the report period in which the employees provideservice, and the financial impacts are substantial, the liabilities should be measured at the discounted amount.
(2) Accounting of post-employment welfare
The post-employment welfare of the Group is a defined plan, which means that the Company does not need to assume anyresponsibility after making fixed contribution to an independent fund. The defined plan includes basic pension and unemploymentinsurance. The contribution of the plan is recognized as liabilities and recorded in the profit and loss of this period or related assetscosts.
(3) Accounting of dismiss welfare
Where the Group provides dismiss welfare for employees, the staff remuneration liabilities is recognized on the earlier one of thefollowing two date: when the Group cannot cancel the dismiss welfare provided for termination of employment or layoff; when theGroup recognizes the costs or expenses of reorganization related to the payment of dismiss welfare.
23. Anticipated liabilities
When responsibilities occurred in connection to contingent issues, and all of the following conditions are satisfied, they arerecognized as expectable liability in the balance sheet:
(1) This responsibility is a current responsibility undertaken by the Group;
(2) Execution of this responsibility may cause financial benefit outflow from the Group;
(3) Amount of the liability can be reliably measured.
Expected liabilities are initially measured at the best estimation on the expenses to exercise the current responsibility. The book valueof expected liability is revised at balance sheet day, and adjustment will be made to reflect current best estimation.
24. Revenue
Whether the Company needs to comply with disclosure requirements of special industriesYesDecorationThe Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information DisclosureGuideline No.6 – Listed Companies Engaged in Decoration Business.If they are not in the same year, then use the estimation on percentage basis when it is possible.The completion percentage is the costs occurred on the total cost.The reliable estimation of the result of providing of labor service must meet the following conditions: A. the revenue can be reliablymeasured; B. the economic benefit is very likely to flow into the company; C. the completion can be determined reliably; D. costsincurred or will be incurred can be reliably measured.If the result cannot be reliably estimated, use the service cost amount of the compensation obtained or will be obtained to recognizethe revenue of the providing of labor service and recognize the incurred laber service cost as the current expense. If no compensationcan be obtained for incurred labor service cost, no revenue can be recognized.
③ Demising of asset using rights
The revenue is recognized when the financial benefit in connection with the demising of asset using right was received and theamount can be reliably measured.
④ Construction contracts
On the balance sheet day, the Group recognizes the contract income and costs using the completion percentage method if the result ofthe construction contract can be reliably estimated. If not, such contracts are treated differently. If the contract cost can be recovered,the revenue is recognized according to the actual contract costs that can be recovered and the contract cost is recognized as thecurrent expense; if not, the contract cost is recognized as the current expense and no revenue is recognized.If the estimated total costs exceed the total revenue, the Group recognizes the estimated loss as the current expense.The competition percentage is determined by the share of the costs incurred in the total cost.The reliable estimation of the result of a construction contract must meet the following conditions: A. the revenue can be reliably
measured; B. the economic benefit is very likely to flow into the company; C. the completion cost can be clearly distinguished anddetermined reliably; D. the completion and costs that will be incurred for completion of the contract can be reliably recognized.
(2) Specific methods for revenue recognition
① Construction contracts
Metro screen door projects of the Company and Shenzhen Fangda Automatic System, and curtain wall project of Fangda Jianke areindividual construction contracts. They are accounted by the following means:
Construction contracts completed within a fiscal year are recognized for their income and cost upon completion.Income and expenses of the construction contracts carried over-year are recognized on percentage basis at balance sheet day when allof the following conditions are satisfied: contract income can be reliably measured, relative financial benefit can inflow to theCompany; progress of the project and costs to complete the contract can be reliably recognized; cost occurred to complete thecontract can be clearly distinguished and reliably measured, which enables comparing of actual cost with predicted cost.Contract costs are direct and indirect expenses occurred since the date when the contract is engaged till the completion day. Thecompetition percentage is determined by the share of the costs incurred in the total cost.Construction contracts completed in current term are recognized for income according to the actual total income of the contract lessincome recognized in previous terms; meanwhile, the total costs of the contract less costs recognized in previous terms arerecognized as current contract costs. If the total contract cost is predicted to be greater than the predicted total income, the predictedloss shall be recognized as current cost instantly.Parts of the curtain wall project under Fangda Jianke are outsourced, and administrative fees are collected at the agreed rate. Forthese construction contracts, income will be recognized when ongoing payment for the project is received and corresponding costsare transferred.
② Sales product
Revenue of products for domestic sales is recognized when the Group delivers the products and receives the sales payment or obtainsthe payment voucher; revenue for products for overseas sales is recognized at departure of the products.
③ Real estate sales
Income from real estate sales is recognized when the contract is signed and performed, project is developed and completed with therecord for the completion acceptance, the handover procedure is completed or property is deemed accepted by the customer as perthe property sales contract, the payment is received or it is believed that the payment can be received, and the cost can be measuredreliably.
25. Government subsidy
(1) Judgment basis and accounting treatment of assets-related government subsidyGovernment subsidy is only recognized when the required conditions are met and the subsidy is received.When a government subsidy is monetary capital, it is measured at the received or receivable amount. None monetary capital aremeasured at fair value; if no reliable fair value available, recognized at RMB1.Government subsidies related to assets are obtained by the Group to purchase, build or formulate in other manners long-term assets;or subsidies related to benefits.For subsidies that can formulate long-term assets without clear government regulations, the part of the subsidies corresponding to theasset value will be measured as assets-related government subsidies, while the rest of them will be measured as benefit-related
government subsidies. Where it is difficult to distinguish them from each them, the whole subsidies will be measured asbenefit-related government subsidies.If the asset-related government subsidy is recognized as deferred gain, should be recorded in gain and loss in the service life.
(2) Judgment basis and accounting treatment of return-related government subsidyIf a government subsidy related to income is used to compensate for related costs or losses that have occurred, it shall be included inthe current profit or loss or write-down related costs; if it is used to compensate for the related costs or losses in the subsequentperiod, it shall be included in the deferred income. During the period in which the related cost, expense or loss is recognized, it isincluded in the current profit or loss or the relevant cost is written off. Government subsidy measured at the nominal amount isaccounted into current income account. The Group adopts a consistent approach to the same or similar government subsidies.Government subsidy related to routine operations should be recorded in other gains or offset related cost. Government subsidy notrelated to routine operations should be recorded in non-operating income or expense.When a confirmed government subsidy needs to be returned, the book value of the asset is adjusted against the book value of therelevant asset at initial recognition. If there is a related deferred income balance, the book balance of the related deferred income iswritten off and the excess is credited to the current profit or loss; In other cases, it is directly included in the current profit and loss.The policy-based preferential loan obtained has interest subsidy. If the government allocates the interest-subsidy funds to the lendingbank, the loan amount actually received will be used as the entry value of the loan, and the borrowing cost will be calculated basedon the loan principal and policy-based preferential interest rate. If the government allocates the interest-bearing funds directly to theGroup, discount interest will offset the borrowing costs.
26. Differed income tax assets and differed income tax liabilities
Income tax includes current and deferred income tax Except for the adjustment goodwill generated by mergers or deferred incometax related to transactions or events directly accounted into the owners’ equity, income tax is accounted as income tax expense intothe current gain/loss account.The Group uses the temporary difference between the book value of the assets and liabilities on the balance sheet day and the taxbase and the liabilities method to recognize the deferred income tax.The taxable temporary difference recognizes the related deferred income tax liabilities, unless the taxable temporary difference iscreated by the following transactions:
(1) Initial recognition of goodwill, or of assets or liabilities generated in transactions with the following features: the transaction isnot a merger and the transaction does not affect the accounting profit or taxable proceeds;
(2) For taxable temporary difference related to investment in subsudiaries and affiliates, the reversal timing for the temporarydifference can be controlled and the difference is unlikely to be reversed in the foreseeable future.For deductible temporary difference, deductible loss and tax deduction that can be accounted in subsequent years, the Group
recognizes the incurred deferred income tax assets to the extent to the future income tax proceeds that is very likely to be received fordeducting deductible temporary difference, deductible loss and tax deduction, unless the deductible temporary difference is generatedin following transactions:
(1) the transaction is not a merger and the transaction does not affect the accounting profit or taxable proceeds;
(2) for the taxable temporary difference related to investment in subsidiaries and affiliates, the corresponding deferred income taxassets are recognized when the following condition is met: the temporary difference is very likely to be reversed in the foreseeablefuture and it is very likely to receive the taxable proceeds that can be used to deduct the deductible temporary difference.On the balance sheet day, the Group measures the deferred income tax assets and liabilities with the tax rate applicable during thepredicted period during which the assets are recovered or the liabilities are paid off and reflects the income tax influence of the assetsrecovery and liabilities repayment way on the balance sheet day.On the balance sheet day, the Group re-exmaines the book value of the deferred income tax assets. If it is unlikely to have adequatetaxable proceeds to reduct the benefits of the deferred income tax assets, less the deferred income tax assets’ book value. When thereis adequate taxable proceeds, the lessened amount will be reversed.
27. Leasing
(1) Accounting of operational leasing
The Group transfers all the risks and rewards attached to the asset at substantially transferred to the lessee, it is recognized asfinancial leasing, and the others are operational leasing. The Group's lease forms are mainly operating leases.
(1) The Group is the leasor
Rentals from operational leasing are recognized as current gains on straight basis to the periods of leasing. Initial direct expenses arerecorded to current income account.
(2) The Group is the leasee
Rentals in operational leasing are recorded to relative capital cost or current income account on straight basis to the periods of leasing.Initial direct expenses are recorded to current income account.
28. Other significant accounting policies and estimates
The Group continuously reviews significant accounting judgment and estimate adopted for the reasonable forecast of future eventsbased 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 thenext accounting year are listed as follows:
(1) Goodwill impairment
The Group judges whether there is impairment to goodwill at least annually. This required valuation of the use value of the assetgroups with goodwill. While estimating the use value, the Group needs to estimate the cash flow from the asset group in the futureand choose the proper discount rate to calculate the present value of the future cash flow.
(2) Estimation of fair value
The Group uses fair value to measure investment real estate and needs to estimate the fair value of investment real estate at leastquarterly. This requires the management to reasonably estimate the fair value of the investment real estate with the help of valuationexperts.
(3) Deferred income tax assets
If there is adequate taxable profit to deduct the loss, the deferred income tax assets should be recognized by all the unused tax loss.This requires the management to make a lot of judgment to forecast the time and amount of future taxable profit and determine theamount of the deferred tax assets based on the taxation strategy.
(4) Construction contract
The Group recognizes income based on the completion of individual construction contract. The management determines thecompletion percentage based on the actual cost in the total budget and forecasts the contract income. The starting and completiondates of construction contracts fall in different account periods. The Group will review and adjust contract income and costestimation in budgets (if the actual contract income is less than the estimate or actual contract cost, contract estimation loss provisionwill be made).
(5) Development cost
For property that has been handed over with income recognized, but whose public facilities have not been constructed or not beencompleted, the management will estimate the development cost for the part that has not been started according to the budget to reflectthe operation result of the property sales.
(6) Hedge accounting
When the hedge relationship begins, the Group specifies the hedge relationship in writing to specify the follow: risks managementtarget and hedging strategy; nature of the hedged item and quantity; nature and quantity of hedging instruments, nature andidentification of hedged risks; evaluation of the hedging effectiveness, including the economic relationship between the hedged itemand hedging instrument, hedging ratio, analysis of the hedging ineffectiveness source; the beginning date of the specified hedgingrelationship.Cash flow hedgingDuring the existence of the hedging relationship, the part of the cumulative gain or loss of the hedging instrument within the changeto the current value of the cumulative cash flow of the hedged item is included into other misc. incomes. The part that is lower orlarger than the cash flow change is included into the gain or loss of the current period.When the hedging relationship ends and related inventory is recognized, the hedging instrument gain or loss recognized in “Othermisc. income hedging reserve” will be transferred to “Raw materials”.
29. Major changes in accounting policies and estimates
(1) Changes in accounting policies
√ Applicable □ Inapplicable
| Account policy changes and reasons | Approval procedure | Remark |
| In 2017, the Ministry of Finance revised and released the "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments", "Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets", "Accounting Standards for Business Enterprises No. 24 - Hedge Accounting", "Accounting Standards for Business Enterprises No. 37 - Financial Instruments Presentation" (hereinafter collectively referred to as the "New Financial Instruments Standards") and requires enterprises listed in China to implement the above accounting standards from January 1, 2019. In accordance with the above requirements, the Company implement the new financial instrument guidelines from January 1 2019. | 15th meeting of the 8th Supervisory Committee | |
| On April 30, 2019, the Ministry of Finance issued the Notice on Amending the Format of the 2019 Annual General Enterprise Financial Statements (Accounting [2019] No. 6). Enterprises requiring the implementation of corporate accounting standards should follow the Accounting Standards for Business Enterprises, requiring for the preparation of the 2019 interim financial statements and annual financial statements and financial statements for subsequent periods. In accordance with the above notification requirements, the Company has adjusted the financial statement items accordingly, starting from the 2019 interim financial statements. | 17th meeting of the 8th Board of Directors | It only affects the listing of related items in the financial statements, and does not affect the company's total assets, total liabilities, net assets and net profit. |
The specific impact of the implementation of the new financial instruments guidelines on the financial statement items at thebeginning of 2019 is as follows:
1. Provision for impairment according to the new financial instrument standard adjustment to reduce the bad debt provision foraccounts receivable by RMB 12,690,700, reduce the provision for bad debts of other receivables by RMB 2,145,000, reduce thedeferred income tax assets by RMB 3,305,900 and increase the initial surplus reserve by RMB 8,300, and increase the undistributedprofit of RMB 11,521,500 at the beginning of the period.
2. The non-trading equity instrument investment is designated as a financial asset measured at fair value and its changes areincluded in other comprehensive income. The original provision for impairment is adjusted to other comprehensive income and theother comprehensive income at the beginning of the period is reduced by RMB 5,166,400. The initial surplus reserve is increased byRMB 516,600 and the undistributed profit is increased by RMB 4,649,800 at the beginning of the period.
The impact of the implementation of the new financial instrument criteria on the company's current financial statement itemsand amounts is as follows:
Provision for impairment according to the new financial instrument standard, adjustment and reduction of bad debt provisionfor accounts receivable of RMB1,215,500, increase of bad debt provision for other receivables of RMB2,084,200, correspondingincrease of deferred income tax assets of RMB436,200, increase credit impairment losses of RMB868,800, reduced income taxexpenses of RMB436,200, reduced net profit attributable to the parent company of RMB419,300, and reduced undistributed profit ofRMB416,600.
(2) Changes in major accounting estimates
□ Applicable √ Inapplicable
(3) The first implementation of the new financial instruments guidelines, new income standards, new leasestandards, adjustments the first implementation of the financial statements at the beginning of the year
√ Applicable □ Inapplicable
Consolidated Balance Sheet
In RMB
| Item | December 31, 2018 | January 1, 2019 | Adjustment |
| Current asset: | |||
| Monetary capital | 1,389,062,083.76 | 1,389,062,083.76 | |
| Settlement provision | |||
| Outgoing call loan | |||
| Transactional financial assets | 0.00 | ||
| Financial assets measured at fair value with variations accounted into current income account | |||
| Derivative financial assets | 0.00 |
| Notes receivable | 140,139,692.84 | 140,139,692.84 | |
| Account receivable | 1,920,075,031.85 | 1,932,765,689.04 | 12,690,657.19 |
| Receivable financing | |||
| Prepayment | 46,454,844.74 | 46,454,844.74 | |
| Insurance receivable | |||
| Reinsurance receivable | |||
| Provisions of Reinsurance contracts receivable | |||
| Other receivables | 139,990,188.26 | 142,135,200.55 | 2,145,012.29 |
| Including: interest receivable | |||
| Dividend receivable | |||
| Repurchasing of financial assets | |||
| Inventory | 651,405,832.29 | 651,405,832.29 | |
| Contract assets | |||
| Assets held for sales | |||
| Non-current assets due in 1 year | |||
| Other current assets | 51,698,111.14 | 51,698,111.14 | |
| Total current assets | 4,338,825,784.88 | 4,353,661,454.36 | 14,835,669.48 |
| Non-current assets: | |||
| Loan and advancement provided | |||
| Debt investment | |||
| Sellable financial assets | 21,674,008.23 | -21,674,008.23 | |
| Other debt investment | |||
| Investment held until mature | |||
| Long-term receivable | |||
| Long-term share equity investment | 70,105,657.88 | 70,105,657.88 | |
| Investment in other equity tools | 21,674,008.23 | 21,674,008.23 |
| Other non-current financial assets | |||
| Investment real estate | 5,256,442,406.63 | 5,230,896,067.50 | |
| Fixed assets | 455,274,241.83 | 455,274,241.83 | |
| Construction in process | 58,269,452.72 | 58,269,452.72 | |
| Productive biological assets | |||
| Gas & petrol | |||
| Use right assets | |||
| Intangible assets | 80,313,240.67 | 80,313,240.67 | |
| R&D expense | |||
| Goodwill | |||
| Long-term amortizable expenses | 2,114,331.46 | 2,114,331.46 | |
| Deferred income tax assets | 356,474,925.76 | 356,474,925.76 | -3,305,914.45 |
| Other non-current assets | 19,360,083.67 | 19,360,083.67 | |
| Total of non-current assets | 6,320,028,348.85 | 6,316,722,434.40 | -3,305,914.45 |
| Total of assets | 10,658,854,133.73 | 10,670,383,888.76 | 11,529,755.03 |
| Current liabilities | |||
| Short-term loans | 208,000,000.00 | 208,000,000.00 | |
| Loans from Central Bank | |||
| Call loan received | |||
| Transactional financial liabilities | |||
| Financial liabilities measured at fair value with variations accounted into current income account | |||
| Derivative financial liabilities | 1,625,725.00 | 1,625,725.00 | |
| Notes payable | 507,864,518.19 | 507,864,518.19 | |
| Account payable | 1,039,630,798.64 | 1,039,630,798.64 | |
| Prepayment received | 278,577,848.54 | 278,577,848.54 | |
| Selling of repurchased financial assets |
| Deposit received and held for others | |||
| Entrusted trading of securities | |||
| Entrusted selling of securities | |||
| Employees' wage payable | 44,513,062.17 | 44,513,062.17 | |
| Taxes payable | 107,709,999.19 | 107,709,999.19 | |
| Other payables | 813,118,699.84 | 813,118,699.84 | |
| Including: interest payable | 2,098,971.44 | 2,098,971.44 | |
| Dividend payable | |||
| Fees and commissions payable | |||
| Reinsurance fee payable | |||
| Contract liabilities | |||
| Liabilities held for sales | |||
| Non-current liabilities due in 1 year | 200,000,000.00 | 200,000,000.00 | |
| Other current liabilities | 9,328,682.25 | 9,328,682.25 | |
| Total current liabilities | 3,210,369,333.82 | 3,210,369,333.82 | |
| Non-current liabilities: | |||
| Insurance contract provision | |||
| Long-term loans | 1,193,978,153.39 | 1,193,978,153.39 | |
| Bond payable | |||
| Including: preferred stock | |||
| Perpetual bond | |||
| Lease liabilities | |||
| Long-term payable | |||
| Long-term employees’ wage payable | |||
| Anticipated liabilities | 6,831,162.99 | 6,831,162.99 |
| Deferred earning | 10,401,161.30 | 10,401,161.30 | |
| Deferred income tax liabilities | 1,042,086,700.35 | 1,042,086,700.35 | |
| Other non-current liabilities | |||
| Total of non-current liabilities | 2,253,297,178.03 | 2,253,297,178.03 | |
| Total liabilities | 5,463,666,511.85 | 5,463,666,511.85 | |
| Owner’s equity: | |||
| Share capital | 1,155,481,686.00 | 1,155,481,686.00 | |
| Other equity tools | |||
| Including: preferred stock | |||
| Perpetual bond | |||
| Capital reserves | 1,454,191.59 | 1,454,191.59 | |
| Less: Shares in stock | 10,831,437.66 | 10,831,437.66 | |
| Other miscellaneous income | 7,382,087.59 | 2,215,662.01 | -5,166,425.58 |
| Special reserves | |||
| Surplus reserves | 120,475,221.40 | 121,000,081.43 | 524,860.03 |
| Common risk provisions | |||
| Retained profit | 3,921,225,872.96 | 3,937,397,193.54 | 16,171,320.58 |
| Total of owner’s equity belong to the parent company | 5,195,187,621.88 | 5,206,717,376.91 | 11,529,755.03 |
| Minor shareholders’ equity | |||
| Total of owners’ equity | 5,195,187,621.88 | 5,206,717,376.91 | 11,529,755.03 |
| Total of liabilities and owner’s interest | 10,658,854,133.73 | 10,670,383,888.76 | 11,529,755.03 |
About the adjustment
In 2017, the Ministry of Finance revised and released the "Accounting Standards for Business Enterprises No. 22 - Recognitionand Measurement of Financial Instruments", "Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets","Accounting Standards for Business Enterprises No. 24 - Hedge Accounting" "Accounting Standards for Business Enterprises No. 37- Financial Instruments Presentation" (hereinafter collectively referred to as the "New Financial Instruments Standards"), and requiresenterprises listed in China to implement the above accounting standards from January 1, 2019.
In accordance with the above requirements, the Company will implement the new financial instrument standard from January 1,2019 and reclassify the original financial assets into transactional financial assets, derivative financial assets, other equity instrument
investments and other non-current financial assets. Non-transaction equity instrument investment is designated as financial assetsmeasured at fair value through other comprehensive income and is presented in “other equity instrument investment” items. At thesame time, the loss provision prepared by the original financial instrument standard is adjusted to be in accordance with the newfinancial instrument. According to the regulations, it is not necessary to repeat the data of the 2018 comparative period whenpreparing the report for each period of 2019, but it is necessary to make retrospective adjustments to the retained earnings or othercomprehensive income at the beginning of 2019.Balance Sheet of the Parent Company
In RMB
| Item | December 31, 2018 | January 1, 2019 | Adjustment |
| Current asset: | |||
| Monetary capital | 410,118,157.55 | 410,118,157.55 | |
| Transactional financial assets | |||
| Financial assets measured at fair value with variations accounted into current income account | |||
| Derivative financial assets | |||
| Notes receivable | 200,000,000.00 | 200,000,000.00 | |
| Account receivable | 471,039.12 | 471,039.12 | 8,595.25 |
| Receivable financing | |||
| Prepayment | 6,733,047.16 | 6,733,047.16 | |
| Other receivables | 822,543,653.04 | 822,543,653.04 | 100,970.95 |
| Including: interest receivable | |||
| Dividend receivable | 100,000,000.00 | 100,000,000.00 | |
| Inventory | |||
| Contract assets | |||
| Assets held for sales | |||
| Non-current assets due in 1 year | |||
| Other current assets | 919,388.18 | 919,388.18 | |
| Total current assets | 1,440,785,285.05 | 1,440,894,851.25 | 109,566.20 |
| Non-current assets: | |||
| Debt investment |
| Sellable financial assets | 21,674,008.23 | -21,674,008.23 | |
| Other debt investment | |||
| Investment held until mature | |||
| Long-term receivable | |||
| Long-term share equity investment | 983,339,494.35 | 983,339,494.35 | |
| Investment in other equity tools | 21,674,008.23 | 21,674,008.23 | |
| Other non-current financial assets | |||
| Investment real estate | 309,189,866.37 | 309,189,866.37 | |
| Fixed assets | 53,784,811.23 | 53,784,811.23 | |
| Construction in process | |||
| Productive biological assets | |||
| Gas & petrol | |||
| Use right assets | |||
| Intangible assets | 2,112,301.97 | 2,112,301.97 | |
| R&D expense | |||
| Goodwill | |||
| Long-term amortizable expenses | 917,499.68 | 917,499.68 | |
| Deferred income tax assets | 34,555,598.81 | 34,528,207.26 | -27,391.55 |
| Other non-current assets | |||
| Total of non-current assets | 1,405,573,580.64 | 1,405,546,189.09 | -27,391.55 |
| Total of assets | 2,846,358,865.69 | 2,846,441,040.34 | 82,174.65 |
| Current liabilities | |||
| Short-term loans | 200,000,000.00 | 200,000,000.00 | |
| Transactional financial liabilities | |||
| Financial liabilities measured at fair value with variations accounted into current income account | |||
| Derivative financial |
| liabilities | |||
| Notes payable | |||
| Account payable | 676,941.85 | 676,941.85 | |
| Prepayment received | 733,274.16 | 733,274.16 | |
| Contract liabilities | |||
| Employees' wage payable | 2,145,763.39 | 2,145,763.39 | |
| Taxes payable | 341,004.65 | 341,004.65 | |
| Other payables | 300,006,406.51 | 300,006,406.51 | |
| Including: interest payable | 740,208.33 | 740,208.33 | |
| Dividend payable | |||
| Liabilities held for sales | |||
| Non-current liabilities due in 1 year | |||
| Other current liabilities | |||
| Total current liabilities | 503,903,390.56 | 503,903,390.56 | |
| Non-current liabilities: | |||
| Long-term loans | 500,000,000.00 | 500,000,000.00 | |
| Bond payable | |||
| Including: preferred stock | |||
| Perpetual bond | |||
| Lease liabilities | |||
| Long-term payable | |||
| Long-term employees’ wage payable | |||
| Anticipated liabilities | |||
| Deferred earning | |||
| Deferred income tax liabilities | 64,130,617.41 | 64,130,617.41 | |
| Other non-current liabilities | |||
| Total of non-current liabilities | 564,130,617.41 | 564,130,617.41 |
| Total liabilities | 1,068,034,007.97 | 1,068,034,007.97 | |
| Owner’s equity: | |||
| Share capital | 1,155,481,686.00 | 1,155,481,686.00 | |
| Other equity tools | |||
| Including: preferred stock | |||
| Perpetual bond | |||
| Capital reserves | 360,835.52 | 360,835.52 | |
| Less: Shares in stock | 10,831,437.66 | 10,831,437.66 | |
| Other miscellaneous income | 8,756,553.46 | 3,590,127.88 | -5,166,425.58 |
| Special reserves | |||
| Surplus reserves | 120,475,221.40 | 121,000,081.43 | 524,860.03 |
| Retained profit | 504,081,999.00 | 508,805,739.20 | 4,723,740.20 |
| Total of owners’ equity | 1,778,324,857.72 | 1,778,407,032.37 | 82,174.65 |
| Total of liabilities and owner’s interest | 2,846,358,865.69 | 2,846,441,040.34 | 82,174.65 |
About the adjustmentIn 2017, the Ministry of Finance revised and released the "Accounting Standards for Business Enterprises No. 22 - Recognitionand Measurement of Financial Instruments", "Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets","Accounting Standards for Business Enterprises No. 24 - Hedge Accounting" "Accounting Standards for Business Enterprises No. 37- Financial Instruments Presentation" (hereinafter collectively referred to as the "New Financial Instruments Standards"), and requiresenterprises listed in China to implement the above accounting standards from January 1, 2019.In accordance with the above requirements, the Company will implement the new financial instrument standard from January 1,2019 and reclassify the original financial assets into transactional financial assets, derivative financial assets, other equity instrumentinvestments and other non-current financial assets. Non-transaction equity instrument investment is designated as financial assetsmeasured at fair value through other comprehensive income and is presented in “other equity instrument investment” items. At thesame time, the loss provision prepared by the original financial instrument standard is adjusted to be in accordance with the newfinancial instrument. According to the regulations, it is not necessary to repeat the data of the 2018 comparative period whenpreparing the report for each period of 2019, but it is necessary to make retrospective adjustments to the retained earnings or othercomprehensive income at the beginning of 2019.
(4) Description of the first implementation of the new financial instrument criteria, new lease standardretrospective adjustment of the previous period comparison data
□ Applicable √ Inapplicable
VI. Taxation
1. Major taxes and tax rates
| Tax | Tax basis | Tax rate |
| VAT | Taxable income | 3%, 5%, 6%, 9%, 10%, 13%, 16% |
| City maintenance and construction tax | Taxable turnover | 1%, 5%, 7% |
| Enterprise income tax | Taxable turnover | See the following table |
| Education surtax | Taxable turnover | 3% |
| Local education surtax | Taxable turnover | 2% |
Tax rates applicable for different tax payers
| Tax payer | Income tax rate |
| The Company | 25% |
| Shenzhen Fangda Jianke Group Co., Ltd. | 15% |
| Fangda Zhichuang Science and Technology Co., Ltd. | 15% |
| Fangda New Materials (Jiangxi) Co., Ltd. | 15% |
| Dongguan Fangda New Material Co., Ltd. | 15% |
| Chengda Fangda Construction Technology Co., Ltd. | 15% |
| Shenzhen Fangda Property Development Co., Ltd. | 25% |
| Shenzhen Fangda New Energy Co., Ltd. | 25% |
| Shenzhen Fangda Property Management Co., Ltd. | 25% |
| Fangda Property (Jiangxi) Co., Ltd. | 25% |
| Pingxiang Fangda Luxin New Energy Co., Ltd. | 25% |
| Pingxiang Xiangdong Fangda New Energy Co., Ltd. | 25% |
| Nanchang Xinjian Fangda New Energy Co., Ltd. | 25% |
| Dongguan Fangda New Energy Co., Ltd. | 25% |
| Shenzhen Qianhai Kechuangyuan Software Co., Ltd. | 15% |
| Fangda Zhichuang Science and Technology (Hong Kong) Co., Ltd. | 16.50% |
| Shihui International Holding Co., Ltd. | 16.50% |
| Shenzhen Hongjun Investment Co., Ltd. | 25% |
| Fangda Australia Pty Ltd | 30% |
| Shanghai Fangda Qingling Technology Co., Ltd. | 25% |
| Shenzhen Fangda Cloud Rail Technology Co., Ltd. | 25% |
| Shenzhen Zhongrong Litai Investment Co., Ltd. | 25% |
| FANGDA SOUTHEAST ASIA COMPANY LIMITED | 20% |
2. Tax preference
(1) According to the Certification of High-tech Enterprise issued by Shenzhen Commission of Technological Innovation, ShenzhenCommission of Finance, Shenzhen National Tax Bureau, and Shenzhen Local Tax Bureau, Fangda Jianke was entitled to enjoy a taxpreference of enterprise income tax of 15% for three years (2018-2020) since the qualifications were awarded on October 16, 2018.
(2) According to the Certification of High-tech Enterprise issued by Shenzhen Commission of Technological Innovation, ShenzhenCommission of Finance, Shenzhen National Tax Bureau, and Shenzhen Local Tax Bureau, Fangda Zhichuang was entitled to enjoy atax preference of enterprise income tax of 15% for three years (2018-2020) since the qualifications were awarded on October 16,2018.
(3) According to the Certification of High-tech Enterprise issued by Jiangxi Ministry of Science and Technology, Jiangxi Ministry ofFinance, Jiangxi National Tax Bureau, and Jiangxi Local Tax Bureau, Fangda New Material was entitled to enjoy a tax preference ofenterprise income tax of 15% for three years (2018-2020) since the qualifications were awarded on August 13, 2018.
(4) On December 14, 2017, the subsidiary Chengdu Fangda Construction Technology Co., Ltd. obtained the “High-tech EnterpriseCertificate” jointly issued by Sichuan Science and Technology Department, Sichuan Provincial Department of Finance, SichuanProvincial State Taxation Bureau and Sichuan Provincial Local Taxation Bureau, within three years after obtaining the qualificationof high-tech enterprises (2017 to 2019), the income tax is levied at 15%.
(5) On November 30, 2016, the subsidiary Dongguan Fangda New Materials Co., Ltd. obtained the “High-tech EnterpriseCertificate” jointly issued by Guangdong Science and Technology Department, Guangdong Provincial Department of Finance,Guangdong Provincial State Taxation Bureau and Guangdong Provincial Local Taxation Bureau. The income tax shall be levied at15% within three years after the qualification of the high-tech enterprise is recognized (2016 to 2018).
(6) On November 2, 2015, the Songshan Lake Taxation Bureau of the State Taxation Bureau of Dongguan City notified the“Songshan Lake National Taxation Pass [2015] No. 3305” that the photovoltaic power generation project undertaken by thesubsidiary Dongguan Fangda New Energy Co., Ltd. belongs to public infrastructure projects supported by the state will be exemptedfrom corporate income tax for three years and corporate income tax will be halved for three years. In 2015, the company entered theexemption period.
(7) On March 2, 2016, according to the document issued by Luxi National Tax Bureau, the PV power generation project undertakenby Subsidiary Pingxiang Fangda Luxin New Energy Co., Ltd, became the infrastructure project supported by the central government.the company enjoys a three-year enterprise income tax relief and 50% reduction for another three years. In 2016, the companyentered the exemption period.
(8) On June 2, 2016, according to the document issued by Nanchang Xinjian District National Tax Bureau, the PV power generationproject undertaken by Subsidiary Nanchang Xinjian Fangda New Energy Co., Ltd, became the infrastructure project supported by thecentral government. the company enjoys a three-year enterprise income tax relief and 50% reduction for another three years. In 2016,the company entered the exemption period.
(9) According to the registration to Shenzhen National Tax Bureau, subsidiary Kechuangyuan Software became a newly establishedsoftware and integrated circuit designing company and can enjoy the two-year full exemption and three-year half-exemption of theenterprise income tax from the first year that the company records profit. Kexunda started making profits in 2016 and therefore starts
to enjoy the exemption.
VII. Notes to the consolidated financial statements
1. Monetary capital
In RMB RMB
| Item | Closing balance | Opening balance |
| Inventory cash: | 3,448.76 | 5,167.01 |
| Bank deposits | 417,446,721.38 | 994,706,369.72 |
| Other monetary capital | 655,276,556.31 | 394,350,547.03 |
| Total | 1,072,726,726.45 | 1,389,062,083.76 |
| Including: total amount deposited in overseas | 27,209,910.00 | 25,269,577.35 |
Other noteNote: 1. The book balance of other monetary funds at the end of the period is RMB655,276,556.31, mainly including money depositssuch as money order deposits, stage deposit guarantees guarantee, letters deposits of investment funds and repurchase payments of Bshares.
2. The deposit and frozen deposit and time deposit shall not be treated as cash and cash equivalent in the preparation of cash flowstatements.
3. At the end of the period, the Group's total amount deposited abroad was RMB27,209,910.00.
2. Transactional financial assets
In RMB RMB
| Item | Closing balance | Opening balance |
| Financial assets measured at fair value with variations accounted into current income account | 200,121,506.67 | 0.00 |
| Including: | ||
| Fund | 200,121,506.67 | 0.00 |
| Financial assets measured at fair value with variations accounted into current income account | 0.00 | 0.00 |
| Including: | ||
| Total | 200,121,506.67 | 0.00 |
Others:
3. Derivative financial assets
In RMB RMB
| Item | Closing balance | Opening balance |
| Hedging tools | 17,375.00 | 0.00 |
| Total | 17,375.00 | 0.00 |
Others:
4. Notes receivable
(1) Classification of notes receivable
In RMB RMB
| Item | Closing balance | Opening balance |
| Bank acceptance | 5,220,227.04 | 6,000,000.00 |
| Commercial acceptance | 80,227,865.72 | 134,139,692.84 |
| Financing credit | 207,778.42 | |
| Total | 85,655,871.18 | 140,139,692.84 |
(2) Pledged notes receivable at the end of period
In RMB RMB
| Item | Amount pledged at the end of the period |
| Commercial acceptance | 0.00 |
| Total | 0.00 |
3) The Group has no endorsed or discounted immature receivable notes at the end of the period.
In RMB RMB
| Item | De-recognized amount | Not de-recognized amount |
| Bank acceptance | 136,630,211.35 | 0.00 |
| Commercial acceptance | 8,862,482.58 | 0.00 |
| Total | 145,492,693.93 | 0.00 |
Others:
There is no objective evidence that the Group’s bills receivable are impaired and no provision forimpairment of bills receivable has been accrued.
5. Account receivable
(1) Account receivable disclosed by categories
In RMB RMB
| Type | Closing balance | Opening balance | ||||||||
| Remaining book value | Bad debt provision | Book value | Remaining book value | Bad debt provision | Book value | |||||
| Amount | Proportion | Amount | Provision rate | Amount | Proportion | Amount | Provision rate | |||
| Account receivable for which bad debt provision is made by group | 127,021,059.76 | 5.11% | 127,021,059.76 | 100.00% | 0.00 | 127,037,156.92 | 5.56% | 127,037,156.92 | 100.00% | 0.00 |
| Including: | ||||||||||
| Account receivable with major individual amount and bad debt provision provided individually | 115,324,894.46 | 4.64% | 115,324,894.46 | 100.00% | 0.00 | 115,340,991.62 | 5.04% | 115,340,991.62 | 100.00% | 0.00 |
| Account receivable with minor individual amount and bad debt provision provided individually | 11,696,165.30 | 0.47% | 11,696,165.30 | 100.00% | 0.00 | 11,696,165.30 | 0.51% | 11,696,165.30 | 100.00% | 0.00 |
| Account receivable for which bad debt provision is made by group | 2,357,100,687.64 | 94.89% | 238,196,191.85 | 10.11% | 2,118,904,495.79 | 2,159,461,958.27 | 94.44% | 226,696,269.23 | 10.50% | 1,932,765,689.04 |
| Including: | ||||||||||
| Account age | 2,349,960,687.64 | 94.60% | 238,196,191.85 | 10.14% | 2,111,764,495.79 | 2,159,461,958.27 | 94.44% | 226,696,269.23 | 10.50% | 1,932,765,689.04 |
| Asset status group - amount of real estate services sold by bank mortgage payment | 7,140,000.00 | 0.29% | 0.00 | 0.00% | 7,140,000.00 | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 |
| Total | 2,484,121,747.40 | 100.00% | 365,217,251.61 | 14.70% | 2,118,904,495.79 | 2,286,499,115.19 | 100.00% | 353,733,426.15 | 15.47% | 1,932,765,689.04 |
Separate bad debt provision:
In RMB RMB
| Name | Closing balance | |||
| Remaining book value | Bad debt provision | Provision rate | Reason | |
| Customer 1 | 54,488,612.90 | 54,488,612.90 | 100.00% | Customer credit status deteriorates and is not expected to be recovered |
| Customer 2 | 23,857,146.77 | 23,857,146.77 | 100.00% | Customer credit status deteriorates and is not expected to be recovered |
| Customer 3 | 21,739,381.96 | 21,739,381.96 | 100.00% | Customer credit status deteriorates and is not expected to be recovered |
| Customer 4 | 15,239,752.83 | 15,239,752.83 | 100.00% | Customer credit status deteriorates and is not expected to be recovered |
| Customer 5 | 9,071,535.95 | 9,071,535.95 | 100.00% | Customer credit status deteriorates and is not expected to be recovered |
| Customer 6 | 2,624,629.35 | 2,624,629.35 | 100.00% | Customer credit status deteriorates and is not expected to be recovered |
| -- | ||||
| Total | 127,021,059.76 | 127,021,059.76 | -- | -- |
Provision for bad debts by combination: ageing combination
In RMB RMB
| Name | Closing balance | ||
| Remaining book value | Bad debt provision | Provision rate | |
| Account age | 2,349,960,687.64 | 238,196,191.85 | 10.14% |
| Including: Less than 1 year | 1,316,400,399.53 | 21,347,072.62 | 1.62% |
| 1-2 years | 315,436,939.74 | 16,696,752.05 | 5.29% |
| 2-3 years | 479,388,387.38 | 58,947,402.12 | 12.30% |
| 3-4 years | 30.15% | ||
| 97,847,041.36 | 29,501,993.23 | ||
| 4-5 years | 62,534,358.77 | 33,349,410.98 | 53.33% |
| Over 5 years | 78,353,560.86 | 78,353,560.86 | 100.00% |
| Total | 2,349,960,687.64 | 238,196,191.85 | -- |
Provision for bad debts by combination: assets state combination
| Name | Closing balance | ||
| Remaining book value | Bad debt provision | Provision rate | |
| Asset status group - amount of real estate services sold by bank mortgage payment | 7,140,000.00 | 0.00 | 0.00% |
| Total | 7,140,000.00 | 0.00 | -- |
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, pleaserefer to the disclosure of other receivables to disclose information about bad debts:
□ Applicable √ Inapplicable
Account age
In RMB RMB
| Age | Closing balance |
| Within 1 year (inclusive) | 1,323,540,399.53 |
| 1-2 years | 315,436,939.74 |
| 2-3 years | 479,388,387.38 |
| Over 3 years | 365,756,020.75 |
| 3-4 years | 97,847,041.36 |
| 4-5 years | 62,534,358.77 |
| Over 5 years | 205,374,620.62 |
| Total | 2,484,121,747.40 |
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information DisclosureGuideline No.6 – Listed Companies Engaged in Decoration Business.Account receivables for that have a single major amount over three years:
| Customer | Balance of accounts receivable of over 3 years | Bad debt provision corresponding to accounts receivable | Reason of the age | Whether there is a risk of recovery |
| Customer 1 | 12,304,991.24 | 12,304,991.24 | Not settled | No |
| Customer 2 | 16,720,646.17 | 8,257,370.58 | Not settled | No |
| Customer 3 | 11,252,441.38 | 11,252,441.38 | Not settled | No |
| Customer 4 | 25,419,437.23 | 9,992,772.71 | Not settled | No |
| Customer 5 | 17,236,181.15 | 13,248,481.17 | Not settled | No |
| Customer 6 | 15,239,752.83 | 15,239,752.83 | Customer credit status deteriorates | Yes |
| Customer 7 | 52,147,883.25 | 52,147,883.25 | Customer credit status deteriorates | Yes |
| Customer 8 | 23,845,280.56 | 23,845,280.56 | Customer credit status deteriorates | Yes |
| Total | 174,166,613.80 | 146,288,973.71 |
(2) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB RMB
| Type | Opening balance | Change in the period | Closing balance | ||
| Provision | Written-back or recovered | Canceled | |||
| Account age | 226,696,269.23 | 11,592,327.74 | 92,405.12 | 238,196,191.85 | |
| Separate provision | 127,037,156.92 | 16,097.16 | 127,021,059.76 | ||
| Total | 353,733,426.15 | 11,592,327.74 | 108,502.28 | 365,217,251.61 | |
(3) Balance of top 5 accounts receivable at the end of the period
The total balance of top-five accounts receivable at the end of the period is RMB432,760,086.90, accounting for 17.42% of the totalremaining balance of all accounts receivable. The bad debt provision made at the end of the period is RMB24,198,556.99.
(4) Receivables derecognized due to transfer of financial assets
The amount of accounts receivable that were terminated due to the handling of accounts receivable factoring was RMB23,199,471.52,and the related losses were RMB1,483,903.77.
6. Prepayment
(1) Account age of prepayments
In RMB RMB
| Age | Closing balance | Opening balance | ||
| Amount | Proportion | Amount | Proportion | |
| Less than 1 year | 69,451,482.64 | 94.44% | 43,589,102.44 | 93.82% |
| 1-2 years | 2,437,763.23 | 3.31% | 1,521,693.56 | 3.28% |
| 2-3 years | 569,443.33 | 0.77% | 444,183.24 | 0.96% |
| Over 3 years | 1,081,617.88 | 1.47% | 899,865.50 | 1.94% |
| Total | 73,540,307.08 | -- | 46,454,844.74 | -- |
(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 RMB47,237,577.13, accounting for 64.23 % of the totalprepayments at the end of the period.
7. Other receivables
In RMB RMB
| Item | Closing balance | Opening balance |
| Interest receivable | 366,666.66 | |
| Other receivables | 162,169,869.87 | 142,135,200.55 |
| Total | 162,536,536.53 | 142,135,200.55 |
(1) Receivable interest
1) Receivable interest
In RMB RMB
| Item | Closing balance | Opening balance |
| Short-term loans | 366,666.66 | |
| Total | 366,666.66 |
2) Method of bad debt provision
□ Applicable √ Inapplicable
(2) Other receivables
1) Other receivables are disclosed by nature
In RMB RMB
| By nature | Closing balance of book value | Opening balance of book value |
| Deposit | 119,215,299.78 | 113,697,386.43 |
| Construction borrowing and advanced payment | 33,188,517.83 | 32,493,474.69 |
| Staff borrowing and petty cash | 2,825,341.40 | 2,717,122.22 |
| Receivable refund of VAT | 1,602,636.19 | 1,334,691.51 |
| Luo Huichi | 13,030,000.00 | 13,030,000.00 |
| Others | 23,435,807.57 | 17,602,550.86 |
| Total | 193,297,602.77 | 180,875,225.71 |
2) Method of bad debt provision
In RMB RMB
| Bad debt provision | First stage | Second stage | Third stage | Total |
| Expected credit losses in the next 12 months | Expected credit loss for the entire duration (no credit impairment) | Expected credit loss for the entire duration (credit impairment has occurred) | ||
| Balance on January 1, 2019 | 2,515,904.25 | 12,151.99 | 36,211,968.92 | 38,740,025.16 |
| Balance on January 1, 2019 in the current period | - | |||
| -- transferred to the third stage | -89.40 | -360.00 | 449.40 | - |
| Provision | 510,666.88 | - | 1,957,198.21 | 2,467,865.09 |
| Transferred back in the current period | 204,996.16 | 5,207.82 | 9,371,670.75 | 9,581,874.73 |
| Canceled in the current period | - | - | 498,282.61 | 498,282.61 |
| Balance on June 30, 2019 | 2,821,485.56 | 6,584.17 | 28,299,663.17 | 31,127,732.90 |
Changes in book balances with significant changes in the current period
□ Applicable √ Inapplicable
Account age
In RMB RMB
| Age | Closing balance |
| Within 1 year (inclusive) | 130,546,068.15 |
| Less than 1 year | 130,546,068.15 |
| 1-2 years | 26,363,457.85 |
| 2-3 years | 3,236,784.03 |
| Over 3 years | 33,151,292.74 |
| 3-4 years | 5,298,345.47 |
| 4-5 years | 10,527,048.10 |
| Over 5 years | 17,325,899.17 |
| Total | 193,297,602.77 |
3) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB RMB
| Type | Opening balance | Change in the period | Closing balance | ||
| Provision | Written-back or recovered | Canceled | |||
| Other receivables and bad debt provision | 38,740,025.16 | 2,467,865.09 | 9,581,874.73 | 498,282.61 | 31,127,732.90 |
| Total | 38,740,025.16 | 2,467,865.09 | 9,581,874.73 | 498,282.61 | 31,127,732.90 |
4) Other receivable written off in the current period
In RMB RMB
| Item | Amount |
| Other receivable written off | 498,282.61 |
5) Balance of top 5 other receivables at the end of the period
In RMB RMB
| Entity | By nature | Closing balance | Age | Percentage (%) | Balance of bad debt provision at the end of the period |
| Shenzhen Yikang Real Estate Co. Ltd. | Deposit and advancement | 70,000,000.00 | Less than 1 year | 36.21% | 1,043,000.00 |
| Bangshen Electronics (Shenzhen) Co., Ltd. | Deposit | 20,000,000.00 | 1-2 years | 10.35% | 298,000.00 |
| Shenzhen Tianyi Xinglong Industrial Co. Ltd. | Short-term loans | 15,000,000.00 | Less than 1 year | 7.76% | 223,500.00 |
| Luo Huichi | Advancement | 13,030,000.00 | Over 5 years | 6.74% | 13,030,000.00 |
| Lanzhou Railway Transport Co., Ltd. | Deposit | 6,931,316.60 | 4-5年 | 3.59% | 103,276.62 |
| Total | -- | 124,961,316.60 | -- | 64.65% | 14,697,776.62 |
8. Inventories
Whether the new revenue guidelines are implemented
□ Yes √ No
(1) Classification of inventories
In RMB RMB
| Item | Closing balance | Opening balance | ||||
| Remaining book value | Depreciation provision | Book value | Remaining book value | Depreciation provision | Book value | |
| Raw materials | 65,254,311.96 | 608,404.99 | 64,645,906.97 | 61,897,942.32 | 608,404.99 | 61,289,537.33 |
| Product in process | 14,322,898.95 | 14,322,898.95 | 24,655,294.74 | 24,655,294.74 | ||
| Finished goods in stock | 11,776,275.15 | 11,776,275.15 | 5,611,267.61 | 5,611,267.61 | ||
| Turnover materials | 45,080.77 | 45,080.77 | 25,215.87 | 25,215.87 | ||
| Assets unsettled for finished construction contracts | 141,287,728.84 | 1,603,589.59 | 139,684,139.25 | 153,610,458.94 | 1,603,589.59 | 152,006,869.35 |
| Development cost | 382,164,950.93 | 382,164,950.93 | 232,622,862.96 | 232,622,862.96 | ||
| Development products | 195,773,702.31 | 62,777,961.10 | 132,995,741.21 | 235,332,474.86 | 62,777,961.10 | 172,554,513.76 |
| OEM materials | 4,760,546.83 | 4,760,546.83 | 2,640,270.67 | 2,640,270.67 | ||
| Total | 815,385,495.74 | 64,989,955.68 | 750,395,540.06 | 716,395,787.97 | 64,989,955.68 | 651,405,832.29 |
Whether Company needs to comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information DisclosureGuideline No.4 – Listed Companies Engaged in Seed and Plantation BusinessNo
(2) Inventory depreciation provision
In RMB RMB
| Item | Opening balance | Increase in this period | Decrease in this period | Closing balance | ||
| Provision | Others | Recover or write-off | Others | |||
| Raw materials | 608,404.99 | 608,404.99 | ||||
| Assets unsettled for finished construction contracts | 1,603,589.59 | 1,603,589.59 | ||||
| Development products | 62,777,961.10 | 62,777,961.10 | ||||
| Total | 64,989,955.68 | 64,989,955.68 |
(3) Balance at the end of the period includes capitalization of borrowing expenseThe balance at the end of the period includes capitalization of borrowing expense of Fangda Town project of RMB8,556,289.84. Thecapitalization amount of cumulative borrowing expenses is RMB162,497,489.70, of which RMB0.00 occurred in this year.
(4) Assets unsettled for finished construction contracts at the end of the period
In RMB RMB
| Item | Amount |
| Accumulative occurred costs | 7,692,637,956.84 |
| Accumulative recognized gross margin | 1,144,425,387.77 |
| Less: estimated loss | 1,603,589.59 |
| Settled amount | 8,695,775,615.77 |
| Assets unsettled for finished construction contracts | 139,684,139.25 |
Others:
9. Other current assets
Whether the new revenue guidelines are implemented
□ Yes √ No
In RMB RMB
| Item | Closing balance | Opening balance |
| Overpaid or prepaid VAT | 12,005,792.40 | 264,337.68 |
| Input tax to be deducted | 14,865,684.27 | 38,782,071.20 |
| Tax to be input | 53,171,279.10 | 12,498,193.14 |
| Bank financial products | 9,900,000.00 | |
| Prepaid income tax | 4,134,958.16 | 3,469.12 |
| Other prepaid taxes | ||
| Trusted loans | 20,000,000.00 | |
| Others | 216,674.88 | 150,040.00 |
| Total | 114,294,388.81 | 51,698,111.14 |
Others:
10. Long-term share equity investment
In RMB RMB
| Invested entity | Opening balance | Change (+,-) | Closing balance | Balance of impairment provision at the end of the period | |||||||
| Increased investment | Decreased investment | Investment gain and loss recognized using the equity method | Other miscellaneous income adjustment | Other equity change | Cash dividend or profit announced | Impairment provision | Others | ||||
| 1. Joint venture | |||||||||||
| 2. Associate | |||||||||||
| Shenzhen Ganshang Joint Investment Co., Ltd. | 8,351,180.78 | 9,293.57 | 8,360,474.35 | ||||||||
| Shenzhen Huihai Yirong Internet Service Co., Ltd. | 6,071,585.28 | 390.12 | 6,071,975.40 | ||||||||
| Jiangxi Business Innovative Property Joint Stock Co., Ltd. | 55,682,891.82 | -335,417.24 | 55,347,474.58 | ||||||||
| Subtotal | 70,105,657.88 | -325,733.55 | 69,779,924.33 | ||||||||
| Total | 70,105,657.88 | -325,733.55 | 69,779,924.33 | ||||||||
11. Investment in other equity tools
In RMB RMB
| Item | Closing balance | Opening balance |
| Financial assets measured at fair value | 21,674,008.23 | 21,674,008.23 |
| with variations accounted into current income account | ||
| Total | 21,674,008.23 | 21,674,008.23 |
Sub-disclosure of non-tradable equity instrument investment in the current period
In RMB RMB
| Project | Dividend recognized in the period | Total gain | Total loss | Amount of other comprehensive income transferred to retained earnings | Reason for measurement at fair value with variations accounted into current income account | Reason for transfer of other miscellaneous into income |
| Investment in Shenyang Fangda | 6,888,567.44 | The investment is a non-trading equity instrument investment |
Others:
IX. Investment real estates
(1) Investment real estate measured at costs
√ Applicable □ Inapplicable
In RMB RMB
| Item | Houses & buildings | Land using right | Construction in process | Total |
| I. Book value | ||||
| 1. Opening balance | 33,376,276.41 | 33,376,276.41 | ||
| 2. Increase in this period | ||||
| (1) External purchase | ||||
| (2) Transfer-in from inventory\fixed assets\construction in progress | ||||
| (3) Increase due to enterprise merger | ||||
| 3. Decrease in this period | ||||
| (1) Disposal | ||||
| (2) Other transfer-out |
| 4. Closing balance | 33,376,276.41 | 33,376,276.41 | ||
| II. Accumulative depreciation and amortization | ||||
| 1. Opening balance | 7,829,937.28 | 7,829,937.28 | ||
| 2. Increase in this period | 431,100.48 | 431,100.48 | ||
| (1) Provision or amortization | 431,100.48 | 431,100.48 | ||
| 3. Decrease in this period | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4. Closing balance | 8,261,037.76 | 8,261,037.76 | ||
| III. Impairment provision | ||||
| 1. Opening balance | ||||
| 2. Increase in this period | ||||
| (1) Provision | ||||
| 3. Decrease in this period | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4. Closing balance | ||||
| IV. Book value | ||||
| 1. Closing book value | 25,115,238.65 | 25,115,238.65 | ||
| 2. Opening book value | 25,546,339.13 | 25,546,339.13 |
(2) Investment real estate measured at fair value
√ Applicable □ Inapplicable
In RMB RMB
| Item | Houses & buildings | Land using right | Construction in process | Total |
| I. Opening balance | 5,230,896,067.50 | 5,230,896,067.50 | ||
| II. Change in this period | 29,292,017.43 | 29,292,017.43 |
| Add: external purchase | 29,292,017.43 | 29,292,017.43 | ||
| Transfer-in from inventory\fixed assets\construction in progress | ||||
| Increase due to enterprise merger | ||||
| Less: disposal | ||||
| Other transfer-out | ||||
| Change in fair value | ||||
| III. Closing balance | 5,260,188,084.93 | 5,260,188,084.93 |
(3) Investment real estate without ownership certificate
In RMB RMB
| Item | Book value | Reason |
| Fangda Square phase 2 (building 1#) | 3,693,096,836.44 | Conditions for applying for property right are not met |
Other note
13. Fixed assets
In RMB RMB
| Item | Closing balance | Opening balance |
| Fixed assets | 431,948,450.66 | 455,274,241.83 |
| Total | 431,948,450.66 | 455,274,241.83 |
(1) Fixed assets
In RMB RMB
| Item | Houses & buildings | PV power plants | Mechanical equipment | Transportation facilities | Electronics and other devices | Total |
| I. Original book value: | ||||||
| 1. Opening balance | 358,968,236.21 | 129,598,135.58 | 121,456,045.88 | 20,192,421.26 | 50,661,366.23 | 680,876,205.16 |
| 2. Increase in | 11,551.72 | 396,551.70 | 1,155,627.85 | 404,586.24 | 1,968,317.51 |
| this period | ||||||
| (1) Purchase | 11,551.72 | 396,551.70 | 599,593.36 | 404,586.24 | 1,412,283.02 | |
| (2) Transfer-in of construction in progress | 556,034.49 | 556,034.49 | ||||
| (3) Increase due to enterprise merger | ||||||
| 3. Decrease in this period | 17,407,839.09 | 409,874.13 | 17,817,713.22 | |||
| (1) Disposal or retirement | 17,407,839.09 | 409,874.13 | 17,817,713.22 | |||
| 4. Closing balance | 341,571,948.84 | 129,598,135.58 | 121,852,597.58 | 21,348,049.11 | 50,656,078.34 | 665,026,809.45 |
| II. Accumulative depreciation | ||||||
| 1. Opening balance | 64,933,358.20 | 16,053,677.73 | 97,725,735.85 | 14,703,576.75 | 27,741,708.68 | 221,158,057.21 |
| 2. Increase in this period | 4,689,117.20 | 3,077,696.52 | 1,985,326.22 | 649,658.42 | 1,050,166.12 | 11,451,964.48 |
| (1) Provision | 4,689,117.20 | 3,077,696.52 | 1,985,326.22 | 649,658.42 | 1,050,166.12 | 11,451,964.48 |
| 3. Decrease in this period | 522,267.50 | 363,784.90 | 886,052.40 | |||
| (1) Disposal or retirement | 522,267.50 | 363,784.90 | 886,052.40 | |||
| 4. Closing balance | 69,100,207.90 | 19,131,374.25 | 99,711,062.07 | 15,353,235.17 | 28,428,089.90 | 231,723,969.29 |
| III. Impairment provision | ||||||
| 1. Opening balance | 3,089,516.62 | 1,354,389.50 | 4,443,906.12 | |||
| 2. Increase in this period |
| (1) Provision | ||||||
| 3. Decrease in this period | 3,089,516.62 | 3,089,516.62 | ||||
| (1) Disposal or retirement | 3,089,516.62 | 3,089,516.62 | ||||
| 4. Closing balance | 1,354,389.50 | 1,354,389.50 | ||||
| IV. Book value | ||||||
| 1. Closing book value | 272,471,740.95 | 110,466,761.33 | 20,787,146.01 | 5,994,813.94 | 22,227,988.44 | 431,948,450.67 |
| 2. Opening book value | 290,945,361.39 | 113,544,457.85 | 22,375,920.53 | 5,488,844.51 | 22,919,657.55 | 455,274,241.83 |
(2) Fixed assets without ownership certificate
In RMB RMB
| Item | Book value | Reason |
| Houses in Urumuqi for offsetting debt | 518,320.35 | Historical reasons |
| Yuehai Office Building C 502 | 133,669.53 | Historical reasons |
14. Construction in process
In RMB RMB
| Item | Closing balance | Opening balance |
| Construction in process | 90,993,650.25 | 58,269,452.72 |
| Total | 90,993,650.25 | 58,269,452.72 |
(1) Construction in progress
In RMB RMB
| Item | Closing balance | Opening balance | ||||
| Remaining book value | Impairment provision | Book value | Remaining book value | Impairment provision | Book value | |
| Chengda Fangda’s Xinjin energy-saving green curtain wall | 20,258,659.98 | 20,258,659.98 | 14,150,785.10 | 14,150,785.10 | ||
| project | ||||||
| 4th and 39th floors of Building 1 of Fangda Town | 44,573,553.71 | 44,573,553.71 | 42,648,816.23 | 42,648,816.23 | ||
| Fangda Group East China Construction Base Project | 26,059,712.42 | 26,059,712.42 | 1,368,127.25 | 1,368,127.25 | ||
| Pingxiang Xuanfeng Chayuan Photovoltaic Power Plant Network Security Protection and Increased Dispatching Data Network Technical Transformation Project | 101,724.14 | 101,724.14 | 101,724.14 | 101,724.14 | ||
| Total | 90,993,650.25 | 90,993,650.25 | 58,269,452.72 | 58,269,452.72 |
(2) Changes in major construction in process in this period
In RMB RMB
| Project | Budget | Opening balance | Increase in this period | +Amount transfer-in to fixed assets in this period | Other decrease in this period | Closing balance | Proportion of accumulative engineering investment in the budget | Project progress | Accumulative capitalized interest | Including: capitalized interest for the current period | Interest capitalization rate | Capital source |
| Chengda Fangda’s Xinjin energy-saving green curtain | 32,317,700.00 | 14,150,785.10 | 6,663,909.37 | 556,034.49 | 20,258,659.98 | 64.41% | 64.41% | Others |
| wall project | ||||||||||||
| 4th and 39th floors of Building 1 of Fangda Town | 78,713,272.01 | 42,648,816.23 | 1,924,737.48 | 44,573,553.71 | 56.63% | 56.63% | 3,253,136.04 | Loans from financial institutions | ||||
| Fangda Group East China Construction Base Project | 92,537,767.36 | 1,368,127.25 | 24,691,585.17 | 26,059,712.42 | 28.16% | 28.16% | Others | |||||
| Total | 203,568,739.37 | 58,167,728.58 | 33,280,232.02 | 556,034.49 | 90,891,926.11 | -- | -- | 3,253,136.04 | -- |
15. Intangible assets
(1) Intangible assets
In RMB RMB
| Item | Land using right | Patent | Unpatented technologies | Computer software | Total |
| I. Book value | |||||
| 1. Opening balance | 78,910,915.74 | 10,658,429.57 | 7,820,118.89 | 7,776,751.03 | 105,166,215.23 |
| 2. Increase in this period | 874,996.41 | 15,517.24 | 890,513.65 | ||
| (1) Purchase | 874,996.41 | 15,517.24 | 890,513.65 | ||
| 3. Decrease in this period | |||||
| (1) Disposal | |||||
| 4. Closing balance | 78,910,915.74 | 11,533,425.98 | 7,820,118.89 | 7,792,268.27 | 106,056,728.88 |
| II. Accumulative |
| amortization | |||||
| 1. Opening balance | 10,699,400.13 | 4,136,325.64 | 4,860,551.51 | 5,156,697.28 | 24,852,974.56 |
| 2. Increase in this period | 1,131,134.80 | 116,100.05 | 196,352.52 | 318,539.77 | 1,762,127.14 |
| (1) Provision | 1,131,134.80 | 116,100.05 | 196,352.52 | 318,539.77 | 1,762,127.14 |
| 3. Decrease in this period | |||||
| (1) Disposal | |||||
| 4. Closing balance | 11,830,534.93 | 4,252,425.69 | 5,056,904.03 | 5,475,237.05 | 26,615,101.70 |
| III. Impairment provision | |||||
| 1. Opening balance | |||||
| 2. Increase in this period | |||||
| (1) Provision | |||||
| 3. Decrease in this period | |||||
| (1) Disposal | |||||
| 4. Closing balance | |||||
| IV. Book value | |||||
| 1. Closing book value | 67,080,380.81 | 7,281,000.29 | 2,763,214.86 | 2,317,031.22 | 79,441,627.18 |
| 2. Opening book value | 68,211,515.61 | 6,522,103.93 | 2,959,567.38 | 2,620,053.75 | 80,313,240.67 |
Intangible asset formed by internal R&D of the period takes up 3.35% in the closing total book value of intangible assets.
(2) Failure to obtain the land use right certificates
In RMB RMB
| Item | Book value | Reason |
| None |
16. Long-term amortizable expenses
In RMB RMB
| Item | Opening balance | Increase in this period | Amortized amount in this period | Other decrease | Closing balance |
| Xuanfeng Chayuan village and Zhuyuan village land transfer compensation | 1,196,831.78 | 28,050.78 | 1,168,781.00 | ||
| Dongguan separation project | 578,568.18 | 48,214.00 | 530,354.18 | ||
| Membership fee | 917,499.68 | 140,000.04 | 777,499.64 | ||
| Total | 2,114,331.46 | 578,568.18 | 216,264.82 | 2,476,634.82 |
Other note
17. Differed income tax assets and differed income tax liabilities
(1) Non-deducted deferred income tax assets
In RMB RMB
| Item | Closing balance | Opening balance | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Assets impairment provision | 555,303,413.82 | 100,709,002.53 | 548,921,196.79 | 99,738,006.66 |
| Deductible loss | 145,912,366.83 | 36,140,607.46 | 116,934,707.17 | 28,982,381.41 |
| Donation | 700,000.00 | 175,000.00 | 700,000.00 | 175,000.00 |
| Unrealizable gross profit | 127,495,913.33 | 31,873,978.34 | 171,832,174.62 | 42,958,043.66 |
| Reserved expense | 172,926,596.90 | 43,001,199.49 | 172,319,511.23 | 42,910,136.64 |
| Deferred earning | 768,110.52 | 110,691.46 | 2,588,555.38 | 383,758.20 |
| Anticipated liabilities | 6,672,052.01 | 1,000,807.80 | 6,831,162.99 | 1,024,674.45 |
| Arbitrage gain and loss | 1,625,725.00 | 243,858.75 | ||
| Provided unpaid taxes | 576,157,148.36 | 144,039,287.08 | 547,012,606.17 | 136,753,151.54 |
| Total | 1,585,935,601.77 | 357,050,574.16 | 1,568,765,639.35 | 353,169,011.31 |
(2) Non-deducted deferred income tax liabilities
In RMB RMB
| Item | Closing balance | Opening balance | ||
| Taxable temporary difference | Deferred income tax liabilities | Taxable temporary difference | Deferred income tax liabilities | |
| Gain/loss caused by changes in fair value | 4,059,173,007.74 | 1,014,793,251.92 | 4,059,575,421.10 | 1,014,893,855.26 |
| Estimated gross margin when Fangda Town records income, but does not reach the taxable income level | 116,989,503.25 | 29,247,375.80 | 108,771,380.35 | 27,192,845.09 |
| Arbitrage gain and loss | 17,375.00 | 2,606.25 | ||
| Total | 4,176,179,885.99 | 1,044,043,233.97 | 4,168,346,801.45 | 1,042,086,700.35 |
(3) Net deferred income tax assets or liabilities listed
In RMB RMB
| Item | Deferred income tax assets and liabilities at the end of the period | Offset balance of deferred income tax assets or liabilities after offsetting | Deferred income tax assets and liabilities at the beginning of the period | Offset balance of deferred income tax assets or liabilities after offsetting |
| Deferred income tax assets | 357,050,574.16 | 356,474,925.76 | ||
| Deferred income tax liabilities | 1,044,043,233.97 | 1,042,086,700.35 |
(4) Details of unrecognized deferred income tax assets
In RMB RMB
| Item | Closing balance | Opening balance |
| Deductible temporary difference | 411,124.79 | 144,013.55 |
| Deductible loss | 4,687,234.98 | 3,432,612.47 |
| Total | 5,098,359.77 | 3,576,626.02 |
(5) Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB RMB
| Year | Closing amount | Opening amount | Remark |
| 2022 | 1,093,587.53 | 1,093,587.53 | |
| 2023 | 2,309,302.94 | 2,339,024.94 | |
| 2024 | 1,284,344.51 | ||
| Total | 4,687,234.98 | 3,432,612.47 | -- |
Others:
18. Other non-current assets
Whether the new revenue guidelines are implemented
□ Yes √ No
In RMB RMB
| Item | Closing balance | Opening balance |
| Prepaid house and equipment amount | 23,877,762.00 | 19,296,006.00 |
| Prepayment of intangible assets | 64,077.67 | 64,077.67 |
| Total | 23,941,839.67 | 19,360,083.67 |
Others:
19. Short-term borrowings
(1) Classification of short-term borrowings
In RMB RMB
| Item | Closing balance | Opening balance |
| Guarantee loan | 400,000,000.00 | |
| Credit borrow | 8,000,000.00 | |
| Discount borrowing of acceptance bills | 500,000,000.00 | 200,000,000.00 |
| Total | 900,000,000.00 | 208,000,000.00 |
(2) Mature but not repaid short-term borrowings
None
20. Derivative financial liabilities
In RMB RMB
| Item | Closing balance | Opening balance |
| Futures contracts | 0.00 | 1,625,725.00 |
| Total | 0.00 | 1,625,725.00 |
Others:
21. Notes payable
In RMB RMB
| Type | Closing balance | Opening balance |
| Commercial acceptance | 62,482,744.62 | 89,593,075.92 |
| Bank acceptance | 471,074,585.78 | 418,271,442.27 |
| Total | 533,557,330.40 | 507,864,518.19 |
The total amount of payable bills that have matured but not been paid at the end of the period is RMB140,671.59.
22. Account payable
(1) Account payable
In RMB RMB
| Item | Closing balance | Opening balance |
| Account repayable and engineering repayables | 697,113,970.77 | 735,661,625.17 |
| Construction payable | 8,303,482.25 | 17,976,531.41 |
| Payable installation and implementation fees | 241,243,003.99 | 280,338,258.89 |
| Others | 6,637,939.57 | 5,654,383.17 |
| Total | 953,298,396.58 | 1,039,630,798.64 |
(2) Significant payables aging more than 1 year
In RMB RMB
| Item | Closing balance | Reason |
| Supplier 1 | 54,662,151.82 | Not mature |
| Supplier 2 | 4,952,636.16 | Not mature |
| Supplier 3 | 4,787,063.43 | Not mature |
| Supplier 4 | 4,685,268.91 | Not mature |
| Supplier 5 | 2,656,994.38 | Not mature |
| Total | 71,744,114.70 | -- |
23. Prepayment received
Whether the new revenue guidelines are implemented
□ Yes √ No
(1) Prepayment received
In RMB RMB
| Item | Closing balance | Opening balance |
| Curtain wall and screen door engineering payment | 123,111,480.41 | 223,438,696.72 |
| Material loan | 6,269,201.91 | 3,988,573.19 |
| Real estate sales payment | 1,500,000.00 | 49,542,377.00 |
| Others | 1,550,380.93 | 1,608,201.63 |
| Total | 132,431,063.25 | 278,577,848.54 |
(2) Significant prepayment aged more than 1 year
In RMB RMB
| Item | Closing balance | Reason |
| None |
(3) Assets settled for unfinished construction contracts at the end of the period
In RMB RMB
| Item | Amount |
| Accumulative occurred costs | 7,692,637,956.84 |
| Accumulative recognized gross margin | 1,144,425,387.77 |
| Less: estimated loss | 1,603,589.59 |
| Settled amount | 8,695,775,615.77 |
| Assets settled for unfinished construction contracts at the end of the period | 139,684,139.25 |
24. Employees’ wage payable
(1) Employees’ wage payable
In RMB RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| 1. Short-term remuneration | 44,497,660.77 | 136,339,637.60 | 156,927,275.35 | 23,910,023.02 |
| 2. Retirement pension program-defined | 15,401.40 | 5,043,692.50 | 5,043,692.50 | 15,401.40 |
| contribution plan | ||||
| 3. Dismiss compensation | 822,691.64 | 822,691.64 | ||
| Total | 44,513,062.17 | 142,206,021.74 | 162,793,659.49 | 23,925,424.42 |
(2) Short-term remuneration
In RMB RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| 1. Wage, bonus, allowance and subsidies | 42,874,045.67 | 128,937,448.36 | 149,544,326.01 | 22,267,168.02 |
| 2. Employee welfare | 36,000.00 | 3,062,035.64 | 3,059,611.64 | 38,424.00 |
| 3. Social insurance | 1,978,422.20 | 1,978,422.20 | ||
| Including: medical insurance | 1,649,105.46 | 1,649,105.46 | ||
| Labor injury insurance | 113,820.62 | 113,820.62 | ||
| Breeding insurance | 215,496.12 | 215,496.12 | ||
| 4. Housing fund | 70,162.00 | 2,091,365.79 | 2,046,747.79 | 114,780.00 |
| 5. Labor union budget and staff education fund | 1,517,453.10 | 270,365.61 | 298,167.71 | 1,489,651.00 |
| Total | 44,497,660.77 | 136,339,637.60 | 156,927,275.35 | 23,910,023.02 |
(3) Defined contribution plan
In RMB RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| 1. Basic pension | 15,401.40 | 4,884,912.46 | 4,884,912.46 | 15,401.40 |
| 2. Unemployment insurance | 158,780.04 | 158,780.04 | ||
| Total | 15,401.40 | 5,043,692.50 | 5,043,692.50 | 15,401.40 |
Others:
25. Taxes payable
In RMB RMB
| Item | Closing balance | Opening balance |
| VAT | 6,787,755.62 | 7,964,966.19 |
| Enterprise income tax | 9,802,627.08 | 96,212,929.73 |
| Personal income tax | 889,027.16 | 793,577.50 |
| City maintenance and construction tax | 1,113,929.01 | 1,234,675.98 |
| Land using tax | 394,688.91 | 242,021.60 |
| Property tax | 1,607,524.83 | 248,910.70 |
| Education surtax | 560,717.76 | 609,781.62 |
| Local education surtax | 235,466.39 | 278,944.66 |
| Others | 41,062.14 | 124,191.21 |
| Total | 21,432,798.90 | 107,709,999.19 |
Others:
26. Other payables
In RMB RMB
| Item | Closing balance | Opening balance |
| Interest payable | 2,423,014.69 | 2,098,971.44 |
| Other payables | 833,927,274.12 | 811,019,728.40 |
| Total | 836,350,288.81 | 813,118,699.84 |
(1) Interest payable
In RMB RMB
| Item | Closing balance | Opening balance |
| Long-term borrowing with interest installment and repayment of principal upon maturity | 1,994,724.40 | 2,087,371.44 |
| Short-term borrowing interests payable | 428,290.29 | 11,600.00 |
| Total | 2,423,014.69 | 2,098,971.44 |
Significant interest overdue but not paid
In RMB RMB
| Borrower | Overdue amount | Reason |
| None |
Others:
(2) Other payables
1) Other payables presented by nature
In RMB RMB
| Item | Closing balance | Opening balance |
| Performance and quality deposit | 51,980,294.06 | 47,901,945.63 |
| Reserved expense | 178,642,606.76 | 182,260,114.71 |
| Tax withheld | 576,157,148.36 | 547,012,606.17 |
| Fangda Town pledge | 100,000.00 | 22,236,150.00 |
| Others | 27,047,224.94 | 11,608,911.89 |
| Total | 833,927,274.12 | 811,019,728.40 |
(2) Significant payables aging more than 1 year
In RMB RMB
| Item | Closing balance | Reason |
| Tax withheld | 505,714,806.86 | See Note |
| Total | 505,714,806.86 | -- |
Other note
1. The tax withheld is the land VAT that needs to be settled and paid for the property delivered of the Fangda Town developed byFangda Property.
2. The major other payables aged over 1 year at the end of the year are mainly the land value-added tax of RMB505,714,806.86,which is not yet settled.
27. Non-current liabilities due within 1 year
In RMB RMB
| Item | Closing balance | Opening balance |
| Long-term loans due within 1 year | 800,000,000.00 | 200,000,000.00 |
| Total | 800,000,000.00 | 200,000,000.00 |
28. Other current liabilities
Whether the new revenue guidelines are implemented
□ Yes √ No
In RMB RMB
| Item | Closing balance | Opening balance |
| Substituted money on VAT | 10,023,641.11 | 9,328,682.25 |
| Total | 10,023,641.11 | 9,328,682.25 |
29. Long-term borrowings
(1) Classification of long-term borrowings
In RMB RMB
| Item | Closing balance | Opening balance |
| Loan by pledge | 493,978,153.39 | 693,978,153.39 |
| Guarantee loan | 100,000,000.00 | |
| Credit borrow | 500,000,000.00 | |
| Total | 593,978,153.39 | 1,193,978,153.39 |
Notes to classification of long-term borrowings:
The above-mentioned borrowing is the 100% stock pledging of Fangda Property Development held by the Company.
Other note, including interest rate range:
The interest rate of long-term borrowings ranges between 4.9875%-5.88%.
30. Anticipated liabilities
Whether the new revenue guidelines are implemented
□ Yes √ No
In RMB RMB
| Item | Closing balance | Opening balance | Reason |
| Maintenance fee | 6,672,052.01 | 6,831,162.99 | Estimated expense in the product quality warranty period |
| Total | 6,672,052.01 | 6,831,162.99 | -- |
31. Deferred earning
In RMB RMB
| Item | Opening balance | Increase | Decrease | Closing balance | Reason |
| Government subsidy | 10,401,161.30 | 800,000.00 | 244,419.98 | 10,956,741.32 | See Note |
| Total | 10,401,161.30 | 800,000.00 | 244,419.98 | 10,956,741.32 | -- |
Items involving government subsidies:
In RMB RMB
| Liabilities | Opening balance | Amount of new subsidy | Amount included in non-operating revenue | Other misc. gains recorded in this period | Costs offset in the period | Other change | Closing balance | Related to assets/earning |
| Major investment project prize from Industry and Trade Development Division of Dongguan Finance Bureau | 1,680,952.70 | 28,571.40 | 1,652,381.30 | Assets-related | ||||
| Massive production project of air-breathing double-layer hollow glass energy-saving curtain call | 7,393,855.79 | 61,993.62 | 7,331,862.17 | Assets-related | ||||
| Railway transport screen door controlling system and information transmission technology | 96,558.17 | 9,452.16 | 87,106.01 | Assets-related | ||||
| Distributed PV power generation project subsidy sponsored by Dongguan Reform and Development Commission | 418,750.13 | 12,499.98 | 406,250.15 | Assets-related | ||||
| Luxi county Xuanfeng town government business introduction subsidy | 181,004.51 | 1,862.82 | 179,141.69 | Assets-related |
| Shenzhen SME Service Bureau enterprise IT construction subsidy | 500,000.00 | 500,000.00 | Assets-related | |||||
| Shenzhen Science and Technology Innovation Committee Technology Innovation Subsidy | 130,040.00 | 130,040.00 | 0.00 | Earning-related | ||||
| East China base fixed assets renovation project | 800,000.00 | 800,000.00 | Assets-related | |||||
| Total | 10,401,161.30 | 800,000.00 | 244,419.98 | 10,956,741.32 |
Others:
1. The Dongguan Finance Bureau Industry and Trade Development Division major subsidy project is a subsidized project notstipulated in Dongguan Financial Circular [2013] No.779. As the project has formed into long-term assets, the Company treats it asan assets-related government subsidy.
2. The massive production project of air-breathing double-layer hollow glass energy-saving curtain wall is a subsidied projectstipulated in Guangdong Financial Doc [2013] No.183. As the project has formed into long-term assets, the Company treats it as anassets-related government subsidy.
3. The railway transport screen door controlling system and information transmission technology is a subsidized project stipulated inShenzhen Tech Innovation [2013] No.242. RMB300,000 is used to purchase equipment. Since the project will form long-term assets,the company will use RMB300,000 as a government subsidy related to Assets.
4. The Dongguan Municipal Development and Reform Commission on the organization of the Dongguan City distributedphotovoltaic power generation subsidy program is based on the "Dongguan Municipal Development and Reform Commission'sCircular on Organizing the Application of Dongguan Distributed PV Generation Capital Subsidy Project" for various types ofbuildings and structures using distributed photovoltaic power generation projects. Owners, according to the installed capacity of250,000 yuan / MW for a one-time grant, the maximum subsidy for a single project does not exceed 2 million yuan, because theproject is related to assets, the company will use it as a government subsidy related to assets.
5. The Xuanfeng Town Government Investment Promotion Subsidy Project of Luxi County promoted the development of the localeconomy. Xuanfeng Town Government of Luxi County introduced Luxin New Energy Company's solar photovoltaic powergeneration project and gave Luxin New Energy Corporation subsidies for obtaining state-owned construction land use rights. As thisproject is related to assets, the Company regards it as a government grant related to the assets.
6. The subsidy project of the Shenzhen Municipal Bureau of Small and Medium-sized Enterprises Service Enterprise Informatization
Project is based on the relevant provisions of the Interim Measures for the Management of Special Funds for the Development ofPrivate and Small and Medium-sized Enterprises in Shenzhen (SCC (2012) No. 177) issued by the Shenzhen Municipal Bureau ofSmall and Medium Business Administration. In 2017, the special fund enterprise informationization project subsidies, because theproject is related to assets, the company will use it as a government grant related to assets.
7. The subsidy project for the renovation and reconstruction of fixed assets of Huadong Base is funded by the Shanghai Economicand Information Commission according to the relevant provisions of the “Administrative Measures for Special Funds for IndustrialTransformation and Upgrading in Shanghai” (Shanghai Economic and Trade Regulations [2015] No. 101). The project is related toassets and the company uses it as a government grant related to assets.
32. Capital share
In RMB
| Opening balance | Change (+,-) | Closing balance | |||||
| Issued new shares | Bonus shares | Transferred from reserves | Others | Subtotal | |||
| Total of capital shares | 1,155,481,686.00 | -32,097,497.00 | -32,097,497.00 | 1,123,384,189.00 | |||
Others:
1. The decrease in share capital was due to the repurchase and cancellation of B shares by the company during the reporting period.
2. As of June 30, 2019, there were 1,431,568 shares subject to sale restrictions at the end of the period, of which 1,431,568 were heldby natural persons.
33. Capital reserve
In RMB RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| Capital premium (share capital premium) | 94.24 | 94.24 | ||
| Other capital reserves | 1,454,097.35 | 1,454,097.35 | ||
| Total | 1,454,191.59 | 1,454,191.59 |
34. Shares in stock
In RMB RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| B share | 10,831,437.66 | 88,223,945.70 | 99,055,383.36 | 0.00 |
| Total | 10,831,437.66 | 88,223,945.70 | 99,055,383.36 | 0.00 |
Other note, including explanation about the reason of the change:
In the current period, the relevant proposals of the previous year continued to repurchase and cancel the treasury shares.
35. Other miscellaneous income
In RMB RMB
| Item | Opening balance | Amount occurred in the current period | Closing balance | |||||
| Amount before income tax | Less: amount written into other gains and transferred into gain/loss in previous terms | Less: amount written into other gains and transferred into gain/loss in previous terms | Less: Income tax expenses | After-tax amount attributed to the parent | After-tax amount attributed to minority shareholders | |||
| 1. Other misc. incomes that cannot be re-classified into gain and loss | -5,166,425.58 | -5,166,425.58 | ||||||
| Fair value change of investment in other equity tools | -5,166,425.58 | -5,166,425.58 | ||||||
| 2. Other misc. incomes that will be re-classified into gain and loss | 7,382,087.59 | 1,636,239.33 | 246,465.00 | 1,389,774.33 | 8,771,861.92 | |||
| Cash flow hedge reserve | -1,290,746.25 | 1,643,100.00 | 246,465.00 | 1,396,635.00 | 105,888.75 | |||
| Translation difference of foreign exchange statement | -83,719.62 | -6,860.67 | -6,860.67 | -90,580.29 | ||||
| Investment real estate measured at fair value | 8,756,553.46 | 8,756,553.46 | ||||||
| Other miscellaneous income | 2,215,662.01 | 1,636,239.33 | 246,465.00 | 1,389,774.33 | 3,605,436.34 | |||
36. Surplus reserves
In RMB RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| Statutory surplus reserves | 121,000,081.43 | 66,957,886.36 | 54,042,195.07 | |
| Total | 121,000,081.43 | 66,957,886.36 | 54,042,195.07 |
Note, including explanation about the reason of the change:
In the current period, according to the relevant resolutions of the previous year, the repurchase and cancellation of treasury shares
continued. The cost of canceled shares in stock was higher than the corresponding cost of equity, which offset the surplus reserve byRMB66,957,886.36.
37. Retained profit
In RMB RMB
| Item | Current period | Last period |
| Adjustment on retained profit of previous period | 3,921,225,872.96 | 1,863,191,218.58 |
| Total of retained profit at beginning of year adjusted (+ for increase, - for decrease) | 16,171,320.58 | |
| Retained profit adjusted at beginning of year | 3,937,397,193.54 | 1,863,191,218.58 |
| Plus: Net profit attributable to owners of the parent | 128,581,755.01 | 230,131,663.19 |
| Common share dividend payable | 224,676,837.79 | 177,546,338.10 |
| Closing retained profit | 3,841,302,110.76 | 1,915,776,543.67 |
Details of retained profit adjusted at beginning of the period
1) Retrospective adjustment due to adopting of the Enterprise Accounting Standard and related regulations, included the retainedprofit by RMB0.
2) Variation of accounting policies, influenced the retained profit by RMB16,171,320.58.
3) Correction of material accounting errors, influenced the retained profit by RMB0.
4) Change of consolidation range caused by merger of entities under common control, influenced the retained profit by RMB0.
5) Other adjustment influenced the retained profit by RMB0.
38. Operational revenue and costs
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period | ||
| Income | Cost | Income | Cost | |
| Main business | 1,385,429,784.95 | 1,055,781,224.98 | 1,426,207,018.36 | 925,306,886.60 |
| Other businesses | 40,461,162.04 | 10,284,745.58 | 15,843,878.17 | 10,179,289.13 |
| Total | 1,425,890,946.99 | 1,066,065,970.56 | 1,442,050,896.53 | 935,486,175.73 |
Whether the new revenue guidelines are implemented
□ Yes √ No
39. Taxes and surcharges
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| City maintenance and construction tax | 3,306,190.50 | 3,980,442.45 |
| Education surtax | 2,197,616.65 | 2,866,384.67 |
| Property tax | 2,367,178.99 | 2,556,126.19 |
| Land using tax | 772,262.35 | 808,834.13 |
| Vehicle usage tax | 15,960.00 | 15,240.00 |
| Stamp tax | 945,391.73 | 849,673.18 |
| Land VAT | 31,689,811.56 | 89,995,084.20 |
| Others | 186,588.29 | 132,410.21 |
| Total | 41,481,000.07 | 101,204,195.03 |
Others:
40. Sales expense
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Labor costs | 13,756,507.19 | 9,512,746.08 |
| Freight and miscellaneous charges | 2,552,065.93 | 2,569,313.15 |
| Travel expense | 684,332.50 | 1,011,110.84 |
| Entertainment expense | 979,949.90 | 727,599.36 |
| Material consumption | 135,028.48 | 252,088.61 |
| Office costs | 48,247.56 | 79,998.75 |
| Rental | 952,964.78 | 388,001.26 |
| Advertisement and promotion fee | 865,854.97 | 932,974.88 |
| Sales agency fee | 5,943,528.83 | 8,390,339.52 |
| Others | 1,257,158.36 | 3,195,968.79 |
| Total | 27,175,638.50 | 27,060,141.24 |
41. Management expenses
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Labor costs | 47,235,320.97 | 36,024,438.72 |
| Depreciation and amortization | 4,810,846.91 | 5,262,351.65 |
| Agencies | 4,403,164.17 | 2,730,309.05 |
| Maintenance costs | 7,845,937.09 | 6,232,422.69 |
| Water and electricity | 351,795.21 | 412,734.95 |
| Office expense | 1,263,021.34 | 990,189.00 |
| Travel expense | 993,288.82 | 1,085,683.50 |
| Entertainment expense | 1,676,576.80 | 1,480,838.65 |
| Rental | 752,831.06 | 1,304,120.83 |
| Lawsuit | 337,101.22 | 249,102.52 |
| Material consumption | 145,197.52 | 226,800.03 |
| Property management fee | 666,254.99 | 573,368.00 |
| Others | 12,197,441.46 | 9,966,826.30 |
| Total | 82,678,777.56 | 66,539,185.89 |
42. R&D cost
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Labor costs | 9,107,318.28 | 6,410,404.69 |
| Material costs | 1,605,931.43 | 387,693.59 |
| Rental | 938,339.52 | 509,554.85 |
| Depreciation costs | 304,783.16 | 204,554.41 |
| Amortization of intangible assets | 41,402.02 | 45,617.91 |
| Travel expense | 43,113.02 | 46,575.55 |
| Maintenance costs | 44,792.26 | 43,032.86 |
| Test and experiment costs | 2,141,801.56 | 122,712.91 |
| Patent maintenance costs | 299,269.18 | 123,047.92 |
| Others | 175,922.69 | 102,205.22 |
| Total | 14,702,673.12 | 7,995,399.91 |
43. Financial expenses
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Interest expense | 41,338,886.48 | 39,431,773.93 |
| Less: interest capitalization | 0.00 | 7,292,522.11 |
| Less: discount government subsidies | 862,000.00 | 0.00 |
| Less: Interest income | 2,439,090.91 | 3,715,935.93 |
| Acceptant discount | 8,563,237.66 | 5,151,856.26 |
| Exchange gain/loss | 99,040.10 | -328,681.30 |
| Commission charges and others | 2,781,267.03 | 525,830.83 |
| Total | 49,481,340.36 | 33,772,321.68 |
44. Other gains
In RMB RMB
| Source | Amount occurred in the current period | Occurred in previous period |
| Integration sponsorship | 200,000.00 | 100,000.00 |
| Nanshan District independent innovation industry development special fund | 500,000.00 | 0 |
| R&D subsidy | 696,000.00 | 1,113,000.00 |
| VAT rebated | 1,359,044.12 | 945,948.64 |
| Enterprise innovation ability cultivation and support | 508,000.00 | 0 |
| VAT income tax refund | 95,000.00 | 0 |
| 2018 Shenzhen standard allowance | 102,000.00 | 0 |
| Significant industrial and trade development investment project award | 28,571.40 | 28,571.40 |
| Self-breathing dual-layer hallow grass energy-saving curtain wall development project | 61,993.62 | 61,993.62 |
| Innovation award | 36,500.00 | 0 |
| Hi-tech enterprise award | 100,000.00 | 0 |
| Science and Technology Commission innovation coupon | 130,040.00 | 0 |
| Patent and intellectual property right subsidy | 0 | 61,500.00 |
| Childbearing subsidy | 112,877.76 | 34,353.92 |
| Industrial growth prize | 0.00 | 300,000.00 |
| Others | 71,423.61 | 53,824.00 |
| Total | 4,001,450.51 | 2,699,191.58 |
45. Investment income
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Gains from long-term equity investment | -325,733.55 | -1,071,000.77 |
| measured by equity | ||
| Investment income of trading financial assets during the holding period | 17,359,985.03 | 9,187,877.90 |
| Investment income from disposal of trading financial assets | -16,598,749.99 | |
| Investment gain of financial products | 4,003,332.19 | 18,127,885.28 |
| Others | -382,436.52 | |
| Total | 4,056,397.16 | 26,244,762.41 |
Others:
46. Income from fair value fluctuation
In RMB RMB
| Source of income from fluctuation of fair value | Amount occurred in the current period | Occurred in previous period |
| Transactional financial assets | 121,506.67 | -8,572,843.25 |
| Investment real estate measured at fair value | -323,794.00 | |
| Total | 121,506.67 | -8,896,637.25 |
Others:
Credit impairment loss
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Bad debt loss of other receivables | 7,114,165.08 | |
| Bad debt of account receivable | -11,483,825.46 | |
| Total | -4,369,660.38 |
48. Assets impairment loss
Whether the new revenue guidelines are implemented
□ Yes √ No
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| 1. Bad debt loss | -1,854,963.05 | |
| Total | -1,854,963.05 |
49. Assets disposal gains
In RMB RMB
| Source | Amount occurred in the current period | Occurred in previous period |
| Gain and loss from disposal of fixed assets ("-" for loss) | -27,108.78 | -1,551,291.52 |
| Total | -27,108.78 | -1,551,291.52 |
50. Non-business income
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period | Amount accounted into the current accidental gain/loss |
| Government subsidy | 303,119.83 | ||
| Penalty income | 401,931.00 | 213,905.88 | 401,931.00 |
| Compensation received | 4,378,501.74 | 1,500,000.00 | 4,378,501.74 |
| Penalty received | 18,200.00 | ||
| VAT rebated into revenue | |||
| Payable account not able to be paid | 1,350.91 | 0.20 | 1,350.91 |
| Others | 92,108.50 | 5,030,812.50 | 92,108.50 |
| Total | 4,873,892.15 | 7,066,038.41 | 4,873,892.15 |
51. Non-business expenses
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period | Amount accounted into the current accidental gain/loss |
| Donation | 122,000.00 | 122,000.00 | |
| Loss of non-current assets disposal | 30,871.84 | 14,020.21 | 30,871.84 |
| Penalty and overdue fine | 81,936.95 | 225,047.87 | 81,936.95 |
| Lawsuit indemnity | 143,641.00 | 0.00 | 143,641.00 |
| Others | 116.01 | 283,092.35 | 116.01 |
| Total | 378,565.80 | 522,160.43 | 378,565.80 |
52. Income tax expenses
(1) Details about income tax expense
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Income tax expenses in this period | 26,190,753.94 | 48,132,940.61 |
| Deferred income tax expenses | -2,171,494.23 | 14,913,239.34 |
| Total | 24,019,259.71 | 63,046,179.95 |
(2) Adjustment process of accounting profit and income tax expense
In RMB RMB
| Item | Amount occurred in the current period |
| Total profit | 152,583,458.35 |
| Income tax expenses calculated based on the legal (or applicable) tax rates | 38,145,864.59 |
| Impacts of different tax rates applicable for some subsidiaries | -11,360,493.17 |
| Impacts of income tax before adjustment | 1,081,367.08 |
| Impact of non-taxable income | -4,339,996.26 |
| Impacts of non-deductible cost, expense and loss | 456,659.18 |
| Deductible temporary difference and deductible loss of unrecognized deferred income tax assets | 380,433.44 |
| Profit and loss of associates and joint ventures calculated using the equity method | 81,433.39 |
| Taxation impact of R&D expense and (presented with “-”) | -1,039,008.70 |
| Others | 613,000.16 |
| Income tax expenses | 24,019,259.71 |
Other note
53. Other miscellaneous income
See Note VII 35.
54. Notes to the cash flow statement
(1) Other cash inflow related to operation
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Interest income | 901,193.29 | 2,872,253.69 |
| Subsidy income | 3,590,774.08 | 2,028,279.98 |
| Retrieving of deposits for exchange bills | 7,101,000.00 | |
| Retrieving of bidding deposits | 37,655,725.50 | 224,435,277.86 |
| Other operating accounts | 5,860,054.56 | 6,855,911.78 |
| Total | 48,007,747.43 | 243,292,723.31 |
(2) Other cash paid related to operation
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Administrative expense | 20,255,645.25 | 12,475,066.93 |
| Sales expense | 11,139,215.49 | 3,036,411.56 |
| Bidding deposit paid | 109,314,906.03 | 282,540,434.70 |
| Net draft deposit net paid | 161,663,318.36 | |
| Other trades | 4,842,346.84 | 15,465,822.42 |
| Total | 307,215,431.97 | 313,517,735.61 |
(3) Other cash received related to financing
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| B shares repurchased excess fund recovery | 39,406.61 | |
| Total | 39,406.61 |
(4) Other cash paid related to financing
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Payment note discounted loan guarantee | 40,000,000.00 | |
| Total | 40,000,000.00 |
55. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB RMB
| Supplementary information | Amount of the Current Term | Amount of the Previous Term |
| 1. Net profit adjusted to cash flow related to business operations: | -- | -- |
| Net profit | 128,564,198.64 | 230,131,663.19 |
| Plus: Asset impairment provision | -4,369,660.38 | 1,854,963.05 |
| Fixed asset depreciation, gas and petrol depreciation, production goods depreciation | 11,883,064.96 | 10,105,993.76 |
| Amortization of intangible assets | 1,762,127.14 | 986,452.62 |
| Amortization of long-term amortizable expenses | 216,264.82 | 348,502.82 |
| Loss from disposal of fixed assets, intangible assets, and other long-term assets (“-“ for gains) | 27,108.78 | -1,551,865.58 |
| Loss from fixed asset discard (“-“ for gains) | 30,871.84 | 743.00 |
| Loss from fair value fluctuation (“-“ for gains) | -121,506.67 | 8,896,637.25 |
| Financial expenses (“-“ for gains) | 49,040,124.14 | 31,237,594.20 |
| Investment losses (“-“ for gains) | -4,056,397.16 | -26,244,762.41 |
| Decrease of deferred income tax asset (“-“ for increase) | -3,881,562.85 | -15,384,604.80 |
| Increase of deferred income tax asset (“-“ for increase) | 1,956,533.62 | 30,132,027.71 |
| Decrease of inventory (“-“ for increase) | 33,483,787.38 | 93,221,757.37 |
| Decrease of operational receivable items (“-“ for increase) | -164,044,489.43 | -225,446,791.23 |
| Increase of operational receivable items (“-“ for decrease) | -351,001,350.74 | -119,226,407.78 |
| Others | -72,214,117.20 | -50,488,170.81 |
| Cash flow generated by business operations, net | -372,725,003.11 | -31,426,267.64 |
| 2. Major investment and financing activities with no cash involved: | -- | -- |
| 3. Net change in cash and cash equivalents: | -- | -- |
| Balance of cash at period end | 380,145,526.85 | 951,511,945.70 |
| Less: Initial balance of cash | 956,190,890.68 | 931,285,535.55 |
| Net increase in cash and cash equivalents | -576,045,363.83 | 20,226,410.15 |
(2) Net cash paid to subsidiaries acquired in the current period
In RMB RMB
| Amount | |
| Cash or cash equivalents paid by the business combination in the current period | 61,937,324.17 |
| Including: | -- |
| Purchase 55% equity of Zhongrong Litai Co., Ltd. | 61,937,324.17 |
| Less: cash and cash equivalent held by subsidiaries on the date of purchase | 2,493.86 |
| Including: | -- |
| Zhongrong Litai | 2,493.86 |
| Including: | -- |
| Net cash paid for acquiring subsidiaries | 61,934,830.31 |
Others:
(3) Composition of cash and cash equivalents
In RMB RMB
| Item | Closing balance | Opening balance |
| I. Cash | 380,145,526.85 | 956,190,890.68 |
| Including: Cash in stock | 3,448.76 | 5,167.01 |
| Bank savings can be used at any time | 377,446,721.38 | 953,231,178.60 |
| Other monetary capital can be used at any time | 2,695,356.71 | 2,954,545.07 |
| III. Balance of cash and cash equivalents at end of term | 380,145,526.85 | 956,190,890.68 |
| Including: restricted cash and cash equivalent used by parent company or subsidiaries in the Group | 692,581,199.60 | 432,871,193.08 |
56. Ownership- or use-right-restricted assets
In RMB RMB
| Item | Closing book value | Reason |
| Monetary capital | 692,581,199.60 | Deposit and time deposit |
| Fixed assets | 50,528,321.98 | Credit guarantee |
| Investment real estate | 309,189,866.37 | Credit guarantee |
| 100% stake in Fangda Property Development held by the Company | 200,000,000.00 | Loan by pledge |
| Total | 1,252,299,387.95 | -- |
57. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB RMB
| Item | Closing foreign currency balance | Exchange rate | Closing RMB balance |
| Monetary capital | -- | -- | 35,947,395.48 |
| Including: USD | 620,366.03 | 6.8747 | 4,264,830.35 |
| HK Dollar | 30,378,071.73 | 0.87966 | 26,722,374.58 |
| SGD | 222,026.22 | 5.0805 | 1,128,004.21 |
| AUD | 126,866.42 | 4.8156 | 610,937.93 |
| VND | 10,107,530,370.00 | 0.000294862 | 2,980,323.36 |
| INR | 2,420,027.00 | 0.0995547 | 240,925.06 |
| Account receivable | -- | -- | 55,682,997.22 |
| Including: USD | 6,812,046.22 | 6.8747 | 46,830,774.15 |
| HK Dollar | 2,155,386.72 | 0.87966 | 1,896,007.49 |
| SGD | 69,721.50 | 5.0805 | 354,220.08 |
| AUD | 1,370,960.11 | 4.8156 | 6,601,995.51 |
| Prepayment | 872,234.44 | ||
| Including: USD | 126,876.00 | 6.8747 | 872,234.44 |
| Other receivables | 122,372.69 | ||
| Including: USD | 13,682.31 | 6.8747 | 94,061.78 |
| AUD | 5,879.00 | 4.8156 | 28,310.91 |
| Account payable | 128,070.88 | ||
| Including: AUD | 26,595.00 | 4.8156 | 128,070.88 |
| Account receivable | 19,122,617.36 | ||
| Including: USD | 686,545.42 | 6.8747 | 4,719,793.79 |
| HK Dollar | 16,373,170.97 | 0.87966 | 14,402,823.57 |
| Other payables | 1,284,717.08 | ||
| Including: USD | 16,049.00 | 6.8747 | 110,332.06 |
| HK Dollar | 1,332,637.50 | 0.87966 | 1,172,267.91 |
| VND | 7,180,000.00 | 0.000294862 | 2,117.11 |
Others:
(2) The note of overseas operating entities should include the main operation places, book keepingcurrencies and selection basis. Where the book keeping currency is changed, the reason should also beexplained.
□ Applicable √ Inapplicable
58. Hedging
Hedging items and related tools, qualitative and quantitative information about hedging risks:
Hedging category Hedged item Hedging tool Hedged riskCash flow hedging Aluminum plate futures transaction Aluminum futures contract Rise on raw material prices, causingpurchase cost increase
59. Government subsidy
(1) Government subsidy profiles
In RMB RMB
| Type | Amount | Item | Amount accounted into the current gain/loss |
| Integration sponsorship | 200,000.00 | Other gains | 200,000.00 |
| 2017 special fund enterprise information project fund | 480,000.00 | Deferred earning | |
| 2018 Shenzhen standard allowance | 102,000.00 | Other gains | 102,000.00 |
| Nanshan District independent innovation industry development special fund | 500,000.00 | Other gains | 500,000.00 |
| VAT rebated | 1,359,044.12 | Other gains | 1,359,044.12 |
| Science and Technology Commission innovation coupon | 130,040.00 | Other gains | 130,040.00 |
| Hi-tech enterprise award | 100,000.00 | Other gains | 100,000.00 |
| Enterprise innovation ability cultivation and support subsidy | 508,000.00 | Other gains | 508,000.00 |
| Distributed PV power generation project subsidy sponsored by Dongguan | 500,000.00 | Deferred earning | 12,499.98 |
| Reform and Development Commission | |||
| Luxi county Xuanfeng town government business introduction subsidy | 186,282.50 | Deferred earning | 1,862.82 |
| Self-breathing dual-layer hallow grass energy-saving curtain wall development project | 8,020,000.00 | Deferred earning | 61,993.62 |
| Significant industrial and trade development investment project award | 2,000,000.00 | Deferred earning | 28,571.40 |
| Fixed assets renovation project allowance | 800,000.00 | Deferred earning | |
| R&D subsidy | 696,000.00 | Other gains | 696,000.00 |
| Others | 501,029.66 | Other gains/deferred gains | 301,438.57 |
| Total | 16,082,396.28 | 4,001,450.51 |
(2) Government subsidy refund
□ Applicable √ Inapplicable
Others:
VIII. Change to Consolidation Scope
1. Consolidation of entities not under common control
1. Merger of companies not under the common control during the report period
In RMB RMB
| Purchased party name | When the equity is acquired | Equity acquisition cost | Shareholding ratio | Equity acquisition method | Purchase date | Basis for determining the purchase date | Revenue from the purchaser to the end of the period | Net profit of the purchaser from the date of purchase to the end of the period |
| Shenzhen Zhongrong Litai Investment Co., Ltd. | August 9, 2018 | 61,937,324.17 | 55.00% | Cash | June 12, 2019 | Date of obtaining the actual control right of the acquired | 0.00 | -39,014.15 |
Others:
(2) Combination costs and goodwill
In RMB RMB
partyCombination costs
| Combination costs | |
| --Cash | 61,937,324.17 |
| --Others | -382,436.51 |
| Total combination costs | 61,554,887.66 |
| Less: fair share of identifiable net assets acquired | 61,554,887.66 |
| Goodwill/consolidation cost is less than the amount of fair value of the identifiable net assets acquired | 0.00 |
(3) Identifiable assets and liabilities of the purchased party on the purchase date
In RMB RMB
| Fair value on the day of acquisition | Book value on the day of acquisition | |
| Assets: | 171,756,378.70 | 171,756,378.70 |
| Monetary capital | 2,493.86 | 2,493.86 |
| Receivables | 8,647,214.00 | 8,647,214.00 |
| Inventory | 132,393,495.15 | 132,393,495.15 |
| Prepayment | 28,500,000.01 | 28,500,000.01 |
| Other current assets | 116,504.85 | 116,504.85 |
| Deferred income tax assets | 2,096,670.83 | 2,096,670.83 |
| Liabilities: | 59,838,401.14 | 59,838,401.14 |
| Payable | 59,838,401.14 | 59,838,401.14 |
| Net assets | 111,917,977.56 | 111,917,977.56 |
| Less: minor shareholders’ equity | 50,363,089.90 | 50,363,089.90 |
| Acquired net assets | 61,554,887.66 | 61,554,887.66 |
Method for determining the fair value of identifiable assets and liabilities:
The value approved by the evaluation agency shall prevail.Contingent liabilities of the purchased party assumed in the business combination:
NoneOthers:
None
(4) Gains or losses arising from the re-measurement of equity held before the date of purchase at fair valueDisposal of a subsidiary in multiple steps that lead to loss of control in the report period
□ Yes √ No
(5) Explanation of the merger consideration or the fair value of the identifiable assets and liabilities of theacquiree cannot be reasonably determined at the end of the purchase date or the end of the current period.None
(6) Others
None
2. Change to the consolidation scope for other reasons
Change in the consolidation scope due to other reasons (such as new subsidiaries and liquidation of subsidiaries) and the situations:
1 , During the period, Fangda Southeast Asia Company Limited was newly established, and the merger of enterprises under the samecontrol increased Shenzhen Zhongrong Litai Investment Co., Ltd., adding 2 subsidiaries in the current consolidated statement.In this period, Shenzhen Kexunda Software Co., Ltd., an indirect controlled subsidiary, was canceled, so the current consolidatedstatement reduced one subsidiary.IX. Equity in Other Entities
1. Interests in subsidiaries
(1) Group Composition
| Company | Place of business | Registered address | Business | Shareholding percentage | Obtaining method | |
| Direct | Indirect | |||||
| Fangda Jianke | Shenzhen | Shenzhen | Designing, manufacturing, and installation of curtain walls | 98.39% | 1.61% | Incorporation |
| Fangda Zhichuang | Shenzhen | Shenzhen | Production, processing and installation of subway screen doors | 14.00% | 86.00% | Incorporation |
| Fangda New Material | Nanchang | Nanchang | Prodution and sales of new-type materialsm composite | 75.00% | 25.00% | Incorporation |
| materials and production of curtain walls | ||||||
| Kexunda | Shenzhen | Shenzhen | Computer software development | 100.00% | Incorporation | |
| Fangda Property | Shenzhen | Shenzhen | Real estate development and operation | 100.00% | Incorporation | |
| Fangda New Energy | Shenzhen | Shenzhen | Design and construction of PV power plants | 100.00% | Incorporation | |
| Chengdu Fangda Jianke | Chengdu | Chengdu | Trusted processing of building curtain wall materials | 100.00% | Incorporation | |
| Shihui International | Virgin Islands | Virgin Islands | Investment | 100.00% | Incorporation | |
| Dongguan Fangda New Material | Dongguan | Dongguan | Production and sales of building curtain walls | 100.00% | Incorporation | |
| Fangda Property Management | Shenzhen | Shenzhen | Property management | 100.00% | Incorporation | |
| Jiangxi Property | Nanchang | Nanchang | Real estate development and operation | 100.00% | Incorporation | |
| Pingxiang Fangda Luxin New Energy Co., Ltd. | Pingxiang | Pingxiang | Design and construction of PV power plants | 100.00% | Incorporation | |
| Pingxiang Xiangdong Fangda New Energy Co., Ltd. | Pingxiang | Pingxiang | Design and construction of PV power plants | 100.00% | Incorporation | |
| Nanchang Xinjian Fangda New Energy Co., Ltd. | Nanchang | Nanchang | Design and construction of PV power plants | 100.00% | Incorporation | |
| Dongguan Fangda New Energy Co., Ltd. | Dongguan | Dongguan | Design and construction of PV power plants | 100.00% | Incorporation | |
| Kechuangyuan | Shenzhen | Shenzhen | Software | 100.00% | Incorporation |
| Software | development | |||||
| Zhichuang Hong Kong | Hong Kong | Hong Kong | Metro screen door | 100.00% | Incorporation | |
| Hongjun Investment Company | Shenzhen | Shenzhen | Investment | 98.00% | 2.00% | Incorporation |
| Jianke Australia | Australia | Australia | Designing, manufacturing, and installation of curtain walls | 100.00% | Incorporation | |
| Fangda Cloud Rail | Shenzhen | Shenzhen | Design, development and sales of cloud rail transport equipment | 100.00% | Incorporation | |
| Fangda Qingling | Shanghai | Shanghai | Production and sales of building curtain walls | 100.00% | Incorporation | |
| Zhongrong Litai | Shenzhen | Shenzhen | Real estate development and operation | 55.00% | Purchase | |
| Fangda Southeast Asia | Vietnam | Vietnam | Designing, manufacturing, and installation of curtain walls | 100.00% | Incorporation |
2. Interests in joint ventures or associates
(1) Financial summary of insignificant joint ventures and associates
In RMB RMB
| Closing balance/amount occurred in this period | Opening balance/amount occurred in previous period | |
| Joint venture: | -- | -- |
| Total shareholding | -- | -- |
| Associate: | -- | -- |
| Total book value of investment | 69,779,924.33 | 70,105,657.88 |
| Total shareholding | -- | -- |
| Net profit | -325,733.55 | -836,397.74 |
| --Total of misc. incomes | -325,733.55 | -836,397.74 |
X. Risks of Financial ToolsMajor financial tools of the Group include monetary fund, accounts receivable, receivable bills, other receivables, other current assets,financial assets measured at fair value and whose change recorded in the profit and loss of this period, accounts payable, interestpayable, payable bills, other payables, short-term borrowings, other current liabilities, non-current liabilities due within one year andlong-term borrowings. Details about the Group's financial instruments are disclosed in related notes. The following explains risksrelated to the financial instruments and risk management policies adopted by the Group to lower the risks. The management of theGroup manages and monitor the risks to ensure that the risks are within the acceptable range.
1. Risk management target and policy
The target of the risk management is to balance between risk and benefit and lower financial risks’ impacts on the Group’s financialperformance. Based on the target, the Group has formulated risk management policy to identify and analyze risks facing the Groupand set an appropriate acceptable level and internal control procedures to monitor the risks. The Group regularly reviews the riskmanagement policies and related internal control system to suit the market status and changes in the Group’s operating activities. Theinternal auditing department of the Group will regularly or randomly check the implementation of the internal control system.Risks caused by the Group’s financial instruments are credit risk, liquidity risk and market risk (including interest, exchange rate andproduct price/equity tool price risks).
(1) Credit risks
Credit risk is caused by the failure of one party of a financial instrument in performing its obligations, causing the risk of financialloss for the other party.The Group manages credit risks through classification. The credit risk is mainly caused by bank deposit and receivables.The Group’s bank deposit is mainly deposited in state-owned banks and large-sized listed banks. The credit risk caused by bankdeposited is minor.For receivables, the Group sets up related policies to control the credit risk. The Group set the credit line and term for debtorsaccording to their financial status, external rating, and possibility of getting third-party guarantee, credit record and other factors. TheGroup has adopted a policy of cooperating only with creditworthy counterparties and obtaining sufficient collateral when necessaryto mitigate the risk of financial losses arising from the failure of the counterparty to perform its contractual obligations. The Groupregularly monitors debtors’ credit record. For those with poor credit record, the Group will send written payment reminders, shortenor cancel credit term to lower the general credit risk.The debtors of the Group's accounts receivable are customers distributed in different industries and regions. The Group continues toperform credit assessments on the financial status of the receivables and when appropriate purchases credit guarantee insurance.The largest credit risk facing the Group is the book value of each financial asset on the balance sheet. The Group makes no guaranteethat may cause the Group credit risks.Among the Group’s receivables, accounts receivable from top 5 customers account for 17.39% of the total accounts receivable (2018:
18.60%); among other receivables, other receivables from top 5 customers account for 64.65% of the total other receivables (2018:
66.83%).
(2) Liquidity risk
Liquidity risk is the risk of capital shortage when the Group needs to pay cash or settled with other financial assets.The Group keeps adequate cash and cash equivalent, and monitors the level to ensure that the cash and cash equivalent can meet theoperation needs. The management of the Group monitors the use of bank loans and ensures that they are used as agreed. The Groupalso obtains guarantee from financial institutions for adequate standby fund to meet short-term and long-term capital demand.The Group can also use fund generated by operating activities and bank and other loans. As of June 30, 2019, the Group's unusedbank borrowings amounted to RMB200,102,800 (December 31, 2018: RMB264,974,000).Financial liabilities and excluded guarantees held by the Group by undiscounted residual contract cash flow (in RMB10,000) at theend of the period:
| Closing amount | ||||
| Item | Less than 1 year | Within 1-3 years | Over 3 years | Total |
| Financial liabilities: | ||||
| Short-term loans | 90,000.00 | 0.00 | 0.00 | 90,000.00 |
| Payable notes and accounts | 139,661.83 | 8,436.82 | 586.92 | 148,685.57 |
| Employees' wage payable | 2,392.54 | 0.00 | 0.00 | 2,392.54 |
| Other payables | 30,791.61 | 52,312.56 | 530.86 | 83,635.03 |
| Non-current liabilities due in 1 year | 80,000.00 | 0.00 | 0.00 | 80,000.00 |
| Other current liabilities | 1,002.36 | 0.00 | 0.00 | 1,002.36 |
| Long-term loans | 0.00 | 59,397.82 | 0.00 | 59,397.82 |
| Total liabilities | 343,848.35 | 120,147.20 | 1,117.78 | 465,113.32 |
Financial liabilities and excluded guarantees held by the Group by undiscounted residual contract cash flow (in RMB10,000) at theend of the period:
| Opening amount | ||||
| Item | Less than 1 year | Within 1-3 years | Over 3 years | Total |
| Financial liabilities: | ||||
| Short-term loans | 20,800.00 | 20,800.00 | ||
| Payable notes and accounts | 139,987.76 | 14,588.41 | 173.36 | 154,749.53 |
| Employees' wage payable | 4,451.31 | 4,451.31 | ||
| Other payables | 25,200.85 | 55,107.77 | 1,003.25 | 81,311.87 |
| Non-current liabilities due in 1 year | 20,000.00 | 20,000.00 | ||
| Other current liabilities | 932.87 | 932.87 | ||
| Long-term loans | 119,397.82 | 119,397.82 | ||
| Total liabilities | 211,372.79 | 189,094.00 | 1,176.61 | 401,643.40 |
The amount of financial liabilities disclosed in the above table is undiscounted contractual cash flow and may therefore differ fromthe carrying amount in the balance sheet.
(3) Market risks
Market risk of financial instrument is caused by changes in the fair value of financial instruments or future cash flow, includinginterest risk, exchange rate and other price risks.Exchange rate riskInterest rate risk is caused by fluctuation of the fair value or future cash flow of financial instruments caused by changes in themarket interest rate. The interest rate risk can be caused by recognized interest-bearing financial instruments and unrecognizedfinancial instruments.The Group's interest rate risk mainly arises from long-term interest-bearing debts such as long-term bank loans. Financial liabilitieswith floating interest rate cause cash flow interest rate risk for the Group. Financial liabilities with fixed interest rate cause fair valueinterest rate risk for the Group. The Group decides the proportion between fixed interest rate and floating interest rate according tothe market environment and regularly reviews and monitors the combination of fixed and floating interest rate instruments.The Group pays close attention to the risks of changing interest rates. The Group adopts no hedging policies currently. Howevermanagement is responsible for monitoring interest rate risk and will consider hedging significant interest rate risk should the needarise. As fixed deposits are short-term borrowing, the interest rate risk of the fair value of bank deposit is minor.There is no floating rate borrowing in this period. If the benchmark interest rate rises or falls by 50 basis points, while other factorsremain unchanged, the Group's net profit and shareholders' equity will remain unchanged. (December 31, 2018: RMB90,800)For the financial instruments held on the balance sheet date that expose the Group to fair value interest rate risk, the impact of the netprofit and shareholders' equity in the above sensitivity analysis is measured based on the assumption that the interest rate changes onthe balance sheet date according to the new interest rate. For floating interest rate non-derivatives held on the balance sheet date thatexpose the Group to cash flow interest rate risk, the effect of net profit and shareholder equity in the above sensitivity analysis is theinterest income or income estimated by the above interest rate changes. The previous year's analysis was based on the sameassumptions and methods.Exchange rate riskExchange rate risk is caused by fluctuation of the fair value or future cash flow of financial instruments caused by changes in theforeign exchange rates. The exchange rate risk can be caused by financial instruments priced in foreign currencies.Exchange rate risk is mainly attributable to the Group's financial position and cash flows affected by fluctuations in foreign exchangerates. Except for the subsidiaries established in Hong Kong holding assets in Hong Kong dollars as the settlement currency, there isonly a small amount of investment in the Hong Kong market. The proportion of assets and liabilities held by the Group in foreigncurrency assets and liabilities is not significant. Therefore the Group believes that the exchange rate risk is not significant.The Group pays close attention to the risks of changing exchange rate. The Group takes no measure to prevent other exchange riskscurrently. However management is responsible for monitoring exchange rate risk and will consider hedging significant exchange raterisk should the need arise.See Note V. 57 Foreign Currency Item Note for the Group’s financial assets and liabilities priced in foreign currencies.Other price risksOther price risks refer to risks of fluctuations caused by changes to market prices, regardless of whether the changes are caused byfactors related to a single financial tool or issuer, or factors related to all similar financial tools traded in the market. Other price riskscome from changes in product prices or equity tool prices.The Group's investment in financial assets classified as fair value through changes in fair value through profit or loss, and investmentproperties measured in fair value are measured at fair value on the balance sheet date. Therefore, the Group bears risks of changes inthe securities market and real estate market prices.The Group closely follows impacts of price changes to the Company’s securities investment price and real estate price risks. TheGroup takes no measure to prevent other price risks currently. The management is responsible for monitoring the other price risks.
2. Capital management
The Group’s capital management aims to ensure continuous operation of the Group, provide returns for shareholders, help otherinterested parties make benefit, and maintain the best capital structure and lower capital cost.The Group may adjust the dividend distributed to shareholders, issue new shares or sell assets to maintain or adjust the capitalstructure.The Group monitors the capital structure based on the assets/liability ratio. As of June 30, 2019, the Group's asset-liability ratio was
53.62% (December 31, 2018: 51.26%).
XI. Fair Value
1. Closing fair value of assets and liabilities measured at fair value
In RMB RMB
| Item | Closing fair value | |||
| First level fair value | Second level fair value | Third level fair value | Total | |
| 1. Continuous fair value measurement | -- | -- | -- | -- |
| (1) Transactional financial assets | 17,375.00 | 17,375.00 | ||
| 1. Financial assets measured at fair value with variations accounted into current income account | 17,375.00 | 17,375.00 | ||
| 3. Derivative financial assets | 17,375.00 | 17,375.00 | ||
| (3) Investment in other equity tools | 21,674,008.23 | 21,674,008.23 | ||
| (4) Investment real estate | 5,260,188,084.93 | 5,260,188,084.93 | ||
| 2. Leased building | 5,260,188,084.93 | 5,260,188,084.93 | ||
| Total assets measured at fair value continuously | 17,375.00 | 5,260,188,084.93 | 21,674,008.23 | 5,281,879,468.16 |
| 2. Discontinuous fair value measurement | -- | -- | -- | -- |
2. Recognition basis of market value of continuous and discontinuous items measured at first level fairvalueThe 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 anddiscontinuous second level fair value itemsFor investment in real estate similar with real estate transaction, the Group uses valuation techniques to determine its fair value. Thetechnique is comparison and earning method. Inputs include transaction date, status, region and other factors.
4. Valuation technique and qualitative and quantitative information for key parameters of continuous anddiscontinuous third level fair value itemsFor other equity instrument investments, for non-trading equity instrument investments, unmatched transactions are available forreference. The Group uses valuation techniques to determine its fair value. The valuation technique used is based on the valuationvalue of the relevant assets provided by the assessment agency and is calculated and confirmed based on its own data.
5. Switch between different levels, switch reason and switching time policy
In the period, there is no switch in the financial assets measured at fair value between the first and second level. The additionalinvestment in other equity instruments measured at the third level is a non-trading equity instrument investment. According to thenew financial instrument standard, it is designated as fair value from January 1, 2019 and its changes are included in othercomprehensive income.
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, otherreceivables, short-term borrowings, notes payable, accounts payables, other payables, and long-term payables.The difference between book value and fair value of financial assets and liabilities not measured at fair value is small.
XII. Related Parties and Transactions
1. Parent of the Company
| Parent | Registered address | Business | Registered capital | Share of the parent co. in the Company | Voting power of the parent company |
| Shenzhen Banglin Technologies Development Co., Ltd. | Shenzhen | Industrial investment | 30,000,000.00 | 10.08% | 10.08% |
Particulars about the parent of the CompanyAll of the investors of Shenzhen Banglin Technology Development Co., Ltd., the holding shareholder of the Company, are naturalpersons. Among them, Chairman Xiong Jianming is holding 85％ shares, and Mr. Xiong Xi – son of Mr. Xiong Jianming, is holding
15% of the shares.
The final controller of the Company is Xiong Jianming.Other Note:
As of June 30, 2019, Mr. Xiong Jianming directly held 0.17% of the company's shares and 10.08% and 8.52% of the shares indirectlythrough Shenzhen Banglin Technology and Shengjiu Investment, totally 18.77%. Mr. Xiong Jianming is the actual controller of theCompany.
2. Subsidiaries of the Company
See Note IX. 1.
3. Joint ventures and associates
See Note IX. 2 for details of significant joint ventures and associates of the Company.Information about other joint ventures or associates with related transactions in this period or with balance generated by relatedtransactions in previous period:
| Joint venture or associate | Relationship with the Company |
| Shenzhen Ganshang Joint Investment Co., Ltd. | Associate |
| Shenzhen Huihai Yirong Internet Service Co., Ltd. | Associate |
| Jiangxi Business Innovative Property Joint Stock Co., Ltd. | Associate |
4. Other associates
| Other related parties | Relationship with the Company |
| Shenzhen Qijian Technology Co., Ltd. (Qijian Technology) | Common actual controller |
| Gong Qing Cheng Shi Li He Investment Management Partnership Enterprise (limited partner) | Executive partners are the Company's senior management personnel |
| Shenyang Fangda Semi-conductor Lighting Co., Ltd. (hereinafter Shenyang Fangda) | Subsidiary in liquidation |
| Shenzhen Woke Semi-conductor Lighting Co., Ltd. (hereinafter Shenzhen Woke) | Subsidiary in liquidation |
5. Related transactions
(1) Related transactions for purchase and sale of goods, provision and acceptance of services
Sales of goods and services
In RMB RMB
| Affiliated party | Related transaction | Amount occurred in the current period | Occurred in previous period |
| Shenzhen Qijian Technology Co., Ltd. | Property service and sales of goods | 22,610.18 | 15,209.97 |
| Shenzhen Ganshang Joint Investment Co., Ltd. | Property service and sales of goods | 5,060.89 | 5,060.89 |
Notes about related transactions for purchase and sale of goods, provision and acceptance of services
(2) Related leasing
The Company is the leasor:
In RMB RMB
| Name of the leasee | Category of asset for lease | Rental recognized in the period | Rental recognized in the period |
| Shenzhen Ganshang Joint Investment Co., Ltd. | Houses & buildings | 66,475.80 | 65,040.67 |
| Shenzhen Qijian Technology Co., Ltd. | Houses & buildings | 207,366.00 | 134,808.00 |
(3) Related guarantees
The Company is the guarantor:
In RMB RMB
| Beneficiary party | Amount guaranteed | Start date | Due date | Completed or not |
| Fangda Jianke | 300,000,000.00 | August 18, 2018 | July 31, 2020 | No |
| Fangda Jianke | 100,000,000.00 | June 21, 2019 | June 20, 2020 | No |
| Fangda Jianke | 400,000,000.00 | March 26, 2019 | March 26, 2020 | No |
| Fangda Jianke | 400,000,000.00 | April 17, 2019 | April 16, 2020 | No |
| Fangda Zhichuang | 216,000,000.00 | August 6, 2018 | July 12, 2020 | No |
| Fangda Zhichuang | 120,000,000.00 | March 26, 2019 | March 26, 2020 | No |
| Fangda Zhichuang | 150,000,000.00 | May 27, 2019 | May 26, 2020 | No |
| Fangda New Material | 65,000,000.00 | June 26, 2019 | June 25, 2020 | No |
| Fangda New Material | 80,000,000.00 | April 24, 2019 | April 23, 2020 | No |
| Fangda Property | 1,300,000,000.00 | February 3, 2015 | February 2, 2023 | No |
The Company is the guarantied party:
In RMB RMB
| Gurantor | Amount guaranteed | Start date | Due date | Completed or not |
| Fangda Jianke | 600,000,000.00 | March 26, 2019 | March 26, 2020 | No |
| Fangda Jianke | 250,000,000.00 | September 29, 2018 | September 29, 2019 | No |
Note to related guarantees
1. The above-mentioned guarantees are all associated guarantees within interested entities of the Group.
2. HSBC has a total credit of RMB 90 million to the Company, Fangda Jianke and Fangda Zhichuang and has not yet agreed on thecredit expiration date. HSBC regularly evaluates the credit status. The restriction on the use of the credit is as follows:
The company can use non-financial bank guarantees of up to 90 million yuan to grant credit.Fangda Jianke has non-committed combined revolving credits of not more than RMB90 million including revolving loans of upto RMB90 million, non-financial bank guarantees of up to RMB90 million and bank acceptances of up to RMB90 million.Fangda Jianke has non-committed combined revolving credits of not more than RMB90 million including revolving loans of upto RMB90 million, non-financial bank guarantees of up to RMB90 million and bank acceptances of up to RMB90 million.
(4) Remuneration of key management
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Wage, remuneration and subsidy | 4,251,796.50 | 3,899,726.00 |
6. Receivable and payables due with related parties
(1) Receivable interest
In RMB RMB
| Project | Affiliated party | Closing balance | Opening balance | ||
| Remaining book value | Bad debt provision | Remaining book value | Bad debt provision | ||
| Account receivable | Qijian Technology | 984.45 | 9.84 | 957.79 | 28.73 |
| Other receivables | Shenyang Fangda | 42,877.00 | 42,877.00 | 42,877.00 | 42,877.00 |
| Other receivables | Shenzhen Woke | 865,802.94 | 865,802.94 | 865,802.94 | 865,802.94 |
| Other receivables | Zhongrong Litai | 0.00 | 0.00 | 8,580,127.08 | 257,403.81 |
XIII. Contingent events
1. Major commitments
Major commitments that exist on the balance sheet dayOn November 6, 2017, Fangda Real Estate Co., Ltd., a subsidiary of the Company, and Bangshen Electronics (Shenzhen) Co., Ltd.signed the “Joint Development Agreement on Fangda Bangshen Industrial Park (Temporary Name) Urban Renewal Project”, and thetwo parties agreed to develop cooperatively. In order to develop urban renewing projects such as a “renovation project”, Fangda RealEstate provided Party A with property compensation through renovating and renovating the property allocation terms agreed upon byboth parties, and obtained independent development rights of the project. As of June 30, 2019, Fangda Real Estate Co., Ltd. had paid
a security deposit of RMB 20 million.
(2) In July 2018 ,the company's subsidiary Fangda Real Estate Co. Ltd. (Party A) signed a contract with Shenzhen Yikang Real EstateCo. 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 projectcompany it holds and the entire development interest of the project to Party A. Party A shall pay Party B a total of RMB600 millionfor the cooperation price. As of June 30, 2019, Fangda Real Estate had paid a guarantee deposit of RMB50 million to Party B, paid aservice fee of RMB20 million, and paid a transfer of RMB61,937,300.
(3) The sales contract of Fangda Plaza developed by Fangda Real Estate Co. Ltd., a subsidiary of the Company, stipulates that if thebuyer cannot obtain the "Property Certificate" according to the agreed time limit calculated from the date of the delivery of the housedue to the seller's reasons, the seller shall bear the liability for breach of contract as of 2018. The number of sets that have not beenissued for delivery on June 30, 2019 is 459 sets.As of June 30, 2019, the Group did not have other commitments that should be disclosed.
2. Contingencies
(1) Significant contingencies on the balance sheet date
① Contingent liabilities formed by material lawsuit or arbitration, and their influences on the financial positionIn June 2015, Fangda Jianke filed a lawsuit against Wang Weihong, requiring an indemnity of RMB23 million and defreezing of theamount RMB23 million by the bank. On June 21 2018, the First Intermediate People's Court of Chongqing Municipality made thefirst-instance judgment and (2008) Juyi Zhongfa Minzi No. 01205 civil judgment verdict Wang Weihong paid to Fangda JiankeCompany within 10 days from the effective date of the judgment. The material amount of RMB 6,611,425.54 the paid projectdepartment and construction team salary is 1,292,336.08 yuan the tax paid is 227,909.13 yuan the deduction of his case is executedthe execution amount is 1,150,000.00 yuan and the overdue interest is 4,688,191.35 yuan totaling 13,969,862.10 yuan. Fangda JiankeCompany refused to accept the compensation amount for the first-instance judgment and filed an appeal. At the same time, WangWeihong also filed an appeal. As of the date of this report, the second instance has been decided. Fangda Jianke applied forenforcement and has recovered RMB 13,286,430.88.On November 27, 2018, Fangda Jianke, a subsidiary of the Group, filed a lawsuit against Quanzhou Hengan Generation VentureCapital Co., Ltd. for Quanzhou Hengan Generation Venture Capital Co., Ltd. for the payment of RMB10,394,232.91 and overdueinterest payment of RMB1,911,122.36, totaling RMB12,305,355.27. On January 21, 2019, the case was officially filed. As of the dateof this report, the two sides have reached a settlement; in July 2019, the settlement amount of 6 million yuan has been recovered andis currently being closed.In November 2018， Fangda Jianke a subsidiary of the Group sued Fujian Huapu Real Estate Development Co. Ltd. for a payment ofRMB 13810243.67 and its overdue interest of RMB 3044545.82 totaling RMB 16854789.49 to the Taijiang District People's Court ofFuzhou City. The case has not been decided.
② Pending lawsuits
On September 6, 2017, Chenghua District People's Court of Chengdu Municipality sentenced Sichuan Chuta Hengyuan Industrial
Co., Ltd. to pay construction money to Fangda Jianke within 10 days from the date of the verdict 川0108民初1828号RMB10,242,182.99. As of the date of this report, Fangda Jianke has applied for execution and has not received the relevant payment.On September 10, 2018, the People's Court of Lixia District of Jinan City sentenced Shandong Zhonghong Real Estate Co. Ltd. to theCompany for payment of RMB5960429.45 within 10 days from the date of the effective date of the (2018) Lu 0102 Minchu 5367civil judgment. As of the date of this report, the company has applied for enforcement and received an execution fee ofRMB62,315.10. Since no other property is available for execution, the court has terminated the execution and will resume theapplication if other property is found later.
(3) Contingent liabilities formed by providing of guarantee to other companies' debts and their influences on financial situationAs of June 30, 2019, the Company provided guarantees for the following unit loans:
| Name of guaranteed entity | Guarantee | Amount (in RMB10,000) | Start date | End date |
| Fangda Property | Pledge guarantee | 39.56 | 2015-12-28 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 4241.27 | 2016-1-26 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 4,260.74 | 2016-1-29 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 343.47 | 2016-3-28 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 3,615.06 | 2016-4-27 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 1,157.69 | 2016-5-22 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 414.66 | 2016-5-30 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 3,113.99 | 2016-6-13 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 1,465.99 | 2016-6-24 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 4415.64 | 2016-7-26 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 4,813.23 | 2016-8-15 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 5,519.40 | 2016-9-7 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 15,048.01 | 2016-10-8 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 7,628.15 | 2016-11-7 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 6,140.11 | 2016-11-30 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 9,889.21 | 2017-1-19 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 1,830.24 | 2017-5-31 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 2,581.45 | 2017-6-28 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 2,879.95 | 2017-8-30 | 2023-2-11 |
| Total | 79,397.82 |
④ Providing guarantee for property purchasers
The Group’s property business provides periodic mortgage guarantee for property purchasers. The term of the periodic guaranteelasts from the effectiveness of guarantee contracts to the completion of mortgage registration and transfer of housing ownershipcertificates to banks. As of June 30, 2019, the Company assumed the above-mentioned phased guarantee amount of RMB 846million.As of June 30, 2019, the Group did not have other commitments that should be disclosed.
(2) Significant contingent events that do not need to be disclosed should be explained
No such significant contingent event(XIV) Other material events
1. Suspension of operations
In RMB RMB
| Item | Income | Expense | Total profit | Income tax expenses | Net profit | Suspended operation profit attributable to the owners of parent company |
| Suspension of operations | 0.00 | -339.85 | -6,517.75 | -6,517.75 | -6,517.75 |
Other note
(1) Kexunda completed the industrial and commercial cancellation in January 2019.
(2) The net profit of termination of operations in 2019 includes: Ke Xunda's net profit for the period is RMB -6,517.75.
2. Segment information
(1) Recognition basis and accounting policy for segment report
The Group divides its businesses into five reporting segments. The reporting segments are determined based on financial informationrequired by routine internal management. The Group’s management regularly review the operating results of the reporting segmentsto determine resource distribution and evaluate their performance.The reporting segments are:
① Curtain wall segment: R&D, design, production, construction and sales of building curtain wall and materials;
② Rail Transit segment: R&D, design, production, construction and sales of subway screen doors;
③ Real estate segment: development and operating of real estate on land of which land use right is legally obtained by the Company;property management;
④ New energy segment: R&D, design, production, construction, operation and sales of photovoltaic power plants and photovoltaicbuilding integration (BIPV).
(5) Others
The segment report information is disclosed based on the accounting policies and measurement standards used by the segments whenreporting to the management. The policies and standards should be consistent with those used in preparing the financial statement.
(2) Financial information
In RMB RMB
| Item | Curtain wall | Rail transport | Real estate | New energy | Others | Offset between segments | Total |
| Turnover | 1,006,855,257.95 | 197,936,254.56 | 206,299,986.06 | 7,798,771.34 | 17,158,094.00 | 10,157,416.91 | 1,425,890,946.99 |
| Including: external transaction income | 1,005,451,498.66 | 197,936,254.56 | 204,754,339.12 | 7,546,757.83 | 10,202,096.83 | 1,425,890,946.99 | |
| Including: major business turnover | 995,621,587.45 | 196,536,683.63 | 186,500,042.57 | 7,798,771.34 | 0.00 | 1,797,660.45 | 1,384,659,424.54 |
| Operation cost | 859,418,207.71 | 143,919,488.13 | 63,231,815.43 | 3,729,417.42 | 3,496,588.06 | 7,729,546.19 | 1,066,065,970.56 |
| Including: external transaction cost | 859,166,194.20 | 142,515,728.84 | 57,493,641.50 | 3,729,417.42 | 3,160,988.59 | 1,066,065,970.56 |
| Including: major business cost | 854,411,800.49 | 143,678,672.73 | 61,355,281.06 | 3,729,417.42 | 0.00 | 7,393,946.71 | 1,055,781,224.98 |
| Total assets | 3,433,406,092.35 | 571,914,096.26 | 6,900,853,490.01 | 176,422,676.02 | 3,200,752,186.15 | 3,342,545,760.34 | 10,940,802,780.45 |
| Total liabilities | 2,325,505,651.68 | 319,505,664.36 | 3,449,398,034.28 | 96,894,880.85 | 1,759,776,694.65 | 2,084,411,801.66 | 5,866,669,124.16 |
(XV) Notes to Financial Statements of the Parent
(1) Account receivable
(1) Account receivable disclosed by categories
In RMB RMB
| Type | Closing balance | Opening balance | ||||||||
| Remaining book value | Bad debt provision | Book value | Remaining book value | Bad debt provision | Book value | |||||
| Amount | Proportion | Amount | Provision rate | Amount | Proportion | Amount | Provision rate | |||
| Account receivable for which bad debt provision is made by group | 14,747.06 | 100.00% | 181.39 | 1.23% | 14,565.67 | 485,607.34 | 100.00% | 14,568.22 | 3.00% | 471,039.12 |
| Including: | ||||||||||
| Account age | 14,747.06 | 100.00% | 181.39 | 1.23% | 14,565.67 | 485,607.34 | 100.00% | 14,568.22 | 3.00% | 471,039.12 |
| Total | 14,747.06 | 100.00% | 181.39 | 1.23% | 14,565.67 | 485,607.34 | 100.00% | 14,568.22 | 3.00% | 471,039.12 |
Provision for bad debts by combination:
In RMB RMB
| Name | Closing balance | ||
| Remaining book value | Bad debt provision | Provision rate | |
| Account age | 14,747.06 | 181.39 | 1.23% |
| Less than 1 year | 14,747.06 | 181.39 | 1.23% |
| Total | 14,747.06 | 181.39 | -- |
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, pleaserefer to the disclosure of other receivables to disclose information about bad debts:
□ Applicable √ Inapplicable
Account age
In RMB RMB
| Age | Closing balance |
| Within 1 year (inclusive) | 14,747.06 |
| Less than 1 year | 14,747.06 |
| Total | 14,747.06 |
(2) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB RMB
| Type | Opening balance | Change in the period | Closing balance | ||
| Provision | Written-back or recovered | Canceled | |||
| Account age | 14,568.22 | 181.39 | 14,568.22 | 181.39 | |
| Total | 14,568.22 | 181.39 | 14,568.22 | 181.39 | |
(3) Balance of top 5 accounts receivable at the end of the period
The total balance of top-five accounts receivable at the end of the period is RMB432,760,086.90, accounting for 100.00% of the totalremaining balance of all accounts receivable. The bad debt provision made at the end of the period is RMB24,198,556.99.
2. Other receivables
In RMB RMB
| Item | Closing balance | Opening balance |
| Dividend receivable | 100,000,000.00 | 100,000,000.00 |
| Other receivables | 1,220,828,678.84 | 722,543,653.04 |
| Total | 1,320,828,678.84 | 822,543,653.04 |
(1) Receivable dividend
1) Receivable dividend
In RMB RMB
| Item (or invested entity) | Closing balance | Opening balance |
| Shenzhen Fangda Property Development Co., Ltd. | 100,000,000.00 | 100,000,000.00 |
| Total | 100,000,000.00 | 100,000,000.00 |
2) Method of bad debt provision
□ Applicable √ Inapplicable
(2) Other receivables
1) Other receivables are disclosed by nature
In RMB RMB
| By nature | Closing balance of book value | Opening balance of book value |
| Construction borrowing and advanced payment | 136,403.35 | 165,316.85 |
| Staff borrowing and petty cash | 152,722.64 | 52,722.64 |
| Luo Huichi | 13,030,000.00 | 13,030,000.00 |
| Others | 908,679.94 | 908,679.94 |
| Associate accounts | 1,220,543,860.83 | 722,429,833.29 |
| Total | 1,234,771,666.76 | 736,586,552.72 |
2) Method of bad debt provision
In RMB RMB
| Bad debt provision | First stage | Second stage | Third stage | Total |
| Expected credit losses in the next 12 months | Expected credit loss for the entire duration (no credit impairment) | Expected credit loss for the entire duration (credit impairment has occurred) | ||
| Balance on January 1, 2019 | 3,248.79 | 13,938,679.94 | 13,941,928.73 | |
| Balance on January 1, 2019 in the current period | —— | —— | —— | —— |
| Provision | 1,059.19 | 1,059.19 | ||
| Balance on June 30, 2019 | 4,307.98 | - | 13,938,679.94 | 13,942,987.92 |
Changes in book balances with significant changes in the current period
□ Applicable √ Inapplicable
Account age
In RMB RMB
| Age | Closing balance |
| Within 1 year (inclusive) | 1,220,762,287.28 |
| Less than 1 year | 1,220,762,287.28 |
| Over 3 years | 14,009,379.48 |
| Over 5 years | 14,009,379.48 |
| Total | 1,234,771,666.76 |
3) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB RMB
| Type | Opening balance | Change in the period | Closing balance | |
| Provision | Written-back or recovered | |||
| Other receivables and bad debt provision | 13,941,928.73 | 1,059.19 | 13,942,987.92 | |
| Total | 13,941,928.73 | 1,059.19 | 13,942,987.92 | |
4) Balance of top 5 other receivables at the end of the period
In RMB RMB
| Entity | By nature | Closing balance | Age | Percentage (%) | Balance of bad debt provision at the end of the period |
| Fangda Jianke | Associate accounts | 723,727,258.00 | Less than 1 year | 58.61% | 0.00 |
| Fangda Property | Associate accounts | 199,164,356.46 | Less than 1 year | 16.13% | 0.00 |
| Jiangxi Property | Associate accounts | 157,378,198.75 | Less than 1 year | 12.75% | 0.00 |
| Fangda New Resource | Associate accounts | 90,734,377.09 | Less than 1 year | 7.35% | 0.00 |
| Shihui International | Associate accounts | 30,459,793.09 | Less than 1 year | 2.47% | 0.00 |
| Total | -- | 1,201,463,983.39 | -- | 97.30% |
3. Long-term share equity investment
In RMB RMB
| Item | Closing balance | Opening balance | ||||
| Remaining book value | Impairment provision | Book value | Remaining book value | Impairment provision | Book value | |
| Investment in subsidiaries | 1,013,339,495.35 | 1,013,339,495.35 | 983,339,494.35 | 983,339,494.35 | ||
| Total | 1,013,339,495.35 | 1,013,339,495.35 | 983,339,494.35 | 983,339,494.35 | ||
(1) Investment in subsidiaries
In RMB RMB
| Invested entity | Opening balance | Increase | Decrease | Closing balance | Provision made in this period | Balance of impairment provision at the end of the period |
| Fangda Jianke | 491,950,000.00 | 491,950,000.00 | ||||
| Qingling Technology | 30,000,001.00 | 30,000,001.00 | ||||
| Fangda Zhichuang | 18,831,241.35 | 18,831,241.35 | ||||
| Fangda New Material | 74,496,600.00 | 74,496,600.00 | ||||
| Fangda Property | 200,000,000.00 | 200,000,000.00 | ||||
| Shihui International | 61,653.00 | 61,653.00 | ||||
| Hongjun Investment Company | 98,000,000.00 | 98,000,000.00 | ||||
| Fangda New Energy | 100,000,000.00 | 100,000,000.00 | ||||
| Total | 983,339,494.35 | 30,000,001.00 | 1,013,339,495.35 |
4. Operational revenue and costs
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period | ||
| Income | Cost | Income | Cost | |
| Other businesses | 17,142,022.88 | 3,496,588.06 | 15,112,290.20 | 673,578.25 |
| Total | 17,142,022.88 | 3,496,588.06 | 15,112,290.20 | 673,578.25 |
Whether the new revenue guidelines are implemented
□ Yes √ No
5. Investment income
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Investment income from disposal of trading financial assets | 3,674,941.97 |
| Investment gain of financial products | 1,155,183.42 | 4,463,541.25 |
| Total | 1,155,183.42 | 8,138,483.22 |
(XVI) Supplementary Materials
1. Detailed accidental gain/loss
√ Applicable □ Inapplicable
In RMB RMB
| Item | Amount | Notes |
| Gain/loss of non-current assets | -27,108.78 | |
| Subsidies accounted into the current income account (except the government subsidy closely related to the enterprise’s business and based on unified national standard quota) | 3,504,406.39 | |
| Capital using expense charged to non-financial enterprises and accounted into the current income account | 355,987.05 | |
| Gain from entrusted investment or assets management | 4,003,332.19 | |
| Gain/loss from change of fair value of transactional financial asset and liabilities, and investment gains from disposal of transactional and derivative financial assets and liabilities and sellable financial assets, other than valid period value instruments related to the Company’s common businesses | 882,741.74 | |
| Write-back of impairment provision of receivables and contract assets for which impairment test is performed individually | 16,097.16 | |
| Gain/loss from commissioned loans | 21,351.12 | |
| Other non-business income and expenditures other than the above | 4,495,326.37 | |
| Less: Influenced amount of income tax | -1,952,557.71 | |
| Influenced amount of minority shareholders’ equity | 0.00 | |
| Total | 15,204,690.95 | -- |
Explanation statement should be made for accidental gain/loss items defined and accidental gain/loss items defined as regular
gain/loss items according to the Explanation Announcement of Information Disclosure No. 1 - Non-recurring gain/loss mentioned.
□ Applicable √ Inapplicable
2. Net income on asset ratio and earning per share
| Profit of the report period | Weighted average net income/asset ratio | Earning per share | |
| Basic earnings per share (yuan/share) | Diluted Earnings per share (yuan/share) | ||
| Net profit attributable to common shareholders of the Company | 2.55% | 0.11 | 0.11 |
| Net profit attributable to the common owners of the PLC after deducting of non-recurring gains/losses | 2.25% | 0.10 | 0.10 |
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 andChinese account standards
□ Applicable √ Inapplicable
(2) Differences in net profits and assets in financial statements disclosed according to the international andChinese account standards
□ Applicable √ Inapplicable