China Fangda Group Co., Ltd.
2022 Annual Report
Feb. 2023
2022 Annual Report
Chapter I Important Statement, Table of Contents and DefinitionsThe members of the Board and the Company guarantee that theannouncement is free from any false information, misleading statement ormaterial omission and are jointly and severally liable for the information'struthfulness, accuracy and integrity.
Mr. Xiong Jianming, the Chairman of Board, Mr. Lin Kebin, the ChiefFinancial Officer, and Mr. Wu Bohua, the manager of accounting departmentdeclare: the Financial Report carried in this report is authentic and completed.All the Directors have attended the meeting of the board meeting at which thisreport was examined.
Forward-looking statements involved in this report including futureplans do not make any material promise to investors. Investors should payattention to investment risks.
The Company needs to comply with the disclosure requirements of thedecoration and decoration industry and the real estate industry in theGuidelines for the Self-discipline and Supervision of Listed Companies ofShenzhen Stock Exchange No. 3 - Industry Information Disclosure.
The company has described the existing market risks, management risksand production and operation risks in this report. Please refer to the risks thatmay be faced mentioned in"X. Prospects for the Company's FutureDevelopment" in III Management Discussion and Analysis.
The Board meeting reviewed and approved the profit distribution preplan:
distributing cash dividend of RMB0.50 (tax included) for each ten shares to allshareholders on the basis of 1,073,874,227 shares of the Company and nodividend share is issued to shareholders. No reserve is capitalized. After theannouncement of the Company's profit distribution plan to the time ofimplementation, if the total share capital changes, in accordance with theprinciple of "distributing cash dividends of RMB 0.50 (tax included) for every10 shares", the total share capital after the market closes on the equityregistration date when the profit distribution plan is implemented shall be used.The total amount of cash dividends will be disclosed in the Company's profitdistribution implementation announcement.
Contents
Chapter I Important Statement, Table of Contents and Definitions ...... 2
Chapter II About the Company and Financial Highlights ...... 9
I. Company profiles ......................................................................................................................................... 9
II. Contacts and liaisons .................................................................................................................................. 9
III. Information disclosure and inquiring ..................................................................................................... 9
IV. Registration changes ................................................................................................................................ 10
V. Other information ..................................................................................................................................... 10
VI. Financial Highlight .................................................................................................................................. 10
VII. Differences in accounting data under domestic and foreign accounting standards ......................... 11
VIII. Financial highlights by quarters ......................................................................................................... 11
IX. Accidental gain/loss item and amount ................................................................................................... 11
Chapter III Management Discussion and Analysis ...... 13
I. Major businesses of the Company during the report period .................................................................. 13
II. Core Competitiveness Analysis ................................................................................................................ 21
III. Core business analysis............................................................................................................................. 24
IV. Non-core business analysis ...................................................................................................................... 31
V. Assets and Liabilities ................................................................................................................................. 32
VI. Investment ................................................................................................................................................ 34
VII. Major assets and equity sales ................................................................................................................ 37
VIII. Analysis of major joint stock companies ............................................................................................ 38
IX. Structural entities controlled by the Company ..................................................................................... 38
X. Future Prospect ......................................................................................................................................... 38
XI. Reception of investigations, communications, or interviews in the reporting period ........................ 41
Chapter IV Corporation Governance ...... 43
I. Overview ..................................................................................................................................................... 43II. The independence of the Company relative to the controlling shareholders and actual controllersin ensuring the company's assets, personnel, finance, institutions, business, etc ...... 43
III. Competition ............................................................................................................................................. 43
IV. Annual and extraordinary shareholder meetings held during the report period .............................. 43
V. Particulars about the Directors, Supervisors, and Senior Management .............................................. 44
VI. Performance of directors during the report period .............................................................................. 49
VII. Special committees under the board of directors during the reporting period ................................ 51
VIII. Performance of Supervisory Committee ............................................................................................ 54
IX. Employees ................................................................................................................................................ 56
X. Profit distribution of the Company and conversion of capital reserve into share capital .................. 57
XI. Share incentive schemes, staff shareholding program or other incentive plans ................................ 58
XII. Construction and implementation of internal control system during the reporting period............ 58
XIII. Management and control of subsidiaries during the reporting period............................................ 58
XIV. Internal control self-evaluation report or internal control audit report .......................................... 58XV. Rectification of problems in self inspection of special actions for governance of listed companies 60V. Environmental and social responsibility ......................................................................................................... 61
I. Major environmental problem .................................................................................................................. 61
II. Social responsibilities................................................................................................................................ 62
III. Consolidate and expand the achievements of poverty alleviation and rural revitalization .............. 62
Chapter VI Significant Events ...... 64
I. Performance of promises ........................................................................................................................... 64II. Non-operating capital use by the controlling shareholder or related parties in the reporting term . 64III. Incompliant external guarantee ............................................................................................................. 64
IV. Description of the board of directors on the latest "non-standard audit report" .............................. 64V. Statement of the Board of Directors, Supervisory Committee and Independent Directors (ifapplicable) on the "non-standard auditors' report" issued by the CPA on the current report period .. 64VI. Description of changes in accounting policies, accounting estimates or correction of majoraccounting errors compared with the financial report of the previous year ...... 64
VII. Statement of change in the financial statement consolidation scope compared with the previousfinancial report ...... 65
VIII. Engaging and dismissing of CPA ........................................................................................................ 65
IX. Delisting after disclosure of annual report ............................................................................................ 66
X. Bankruptcy and capital reorganizing ..................................................................................................... 66
XI. Significant lawsuit and arbitration ........................................................................................................ 66
XII. Punishment and rectification ................................................................................................................ 66
XIII. Credibility of the Company, controlling shareholder and actual controller ................................... 66
XIV. Material related transactions ............................................................................................................... 67
XV. Significant contracts and performance ................................................................................................. 68
XVI. Other material events ........................................................................................................................... 74
XVII. Material events of subsidiaries .......................................................................................................... 75
Chapter VII Changes in Share Capital and Shareholders ...... 76
I. Changes in shares ....................................................................................................................................... 76
II. Share placing and listing .......................................................................................................................... 78
III. Shareholders and the substantial controller of the Company ............................................................. 78
IV. Specific implementation of share repurchase in the reporting period ................................................ 82
Chapter VIII Preferred Shares ...... 83
Chapter IX Information about the Company's Securities ...... 84
Chapter X Financial Statements ...... 85
I. Auditor's report .......................................................................................................................................... 85
II. Financial statements ................................................................................................................................. 92
III. General Information ............................................................................................................................. 108
IV. Basis for the preparation of financial statements ................................................................................ 109
V. Significant Account Policies and Estimates ........................................................................................... 110
VI. Taxation .................................................................................................................................................. 174
VII. Notes to the consolidated financial statements .................................................................................. 177At the end of the period, the total amount of bills payable due and unpaid was RMB1,622,493.59 , all ofwhich were commercial acceptance bills. As a result of the supplier's failure to apply for payment to thebank in time, the payment had been fully paid as of the reporting date. ....................................................... 202
VIII. Change to Consolidation Scope ......................................................................................................... 223
IX. Equity in Other Entities ........................................................................................................................ 223
X. Risks of Financial Tools .......................................................................................................................... 226
XI. Fair Value ............................................................................................................................................... 232
XII. Related Parties and Transactions ....................................................................................................... 233
XIII. Contingent events ............................................................................................................................... 238
XIV. Post-balance-sheet events ................................................................................................................... 242
XV. Other material events ........................................................................................................................... 242
XVII. Notes to Financial Statements of the Parent ................................................................................... 244
XVIII. Supplementary Materials ............................................................................................................... 249
Reference
1. Financial statements stamped and signed by the legal representative, CFO and accounting manager;
2. Original copy of the Auditors' Report under the seal of the CPA and signed by and under the seal of certified accountants;
3. Originals of all documents and manuscripts of Public Notices of the Company disclosed in public.
Definitions
Terms | Refers to | Description |
Fangda Group, company, the Company | Refers to | China Fangda Group Co., Ltd. |
Articles of Association | Refers to | Articles of Association of China Fangda Group Co., Ltd. |
Meeting of shareholders | Refers to | Meetings of shareholders of China Fangda Group Co., Ltd. |
Board of Directors | Refers to | Board of Directors of China Fangda Group Co., Ltd. |
Supervisory Committee | Refers to | Supervisory Committee of China Fangda Group Co., Ltd. |
Banglin Technology | Refers to | Shenzhen Banglin Technologies Development Co., Ltd. |
Shilihe Co. | Refers to | Gong Qing Cheng Shi Li He Investment Management Partnership Enterprise (limited partner) |
Shengjiu Co. | Refers to | Shengjiu Investment Ltd. |
Fangda Jianke | Refers to | Shenzhen Fangda Jianke Group Co., Ltd. |
Fangda Zhiyuan | Refers to | Fangda Zhichuang Technology Co., Ltd. |
Fangda Jiangxi New Material | Refers to | Fangda New Materials (Jiangxi) Co., Ltd. |
Fangda New Resource | Refers to | Shenzhen Fangda New Energy Co., Ltd. |
Fangda Property | Refers to | Shenzhen Fangda Property Development Co., Ltd. |
Fangda Chengdu Technology | Refers to | Chengda Fangda Construction Technology Co., Ltd. |
Fangda Dongguan New Material | Refers to | Dongguan Fangda New Material Co., Ltd. |
Kechuangyuan Software | Refers to | Shenzhen Qianhai Kechuangyuan Software Co., Ltd. |
Fangda Property | Refers to | Shenzhen Fangda Property Management Co., Ltd. |
Fangda Jiangxi Property | Refers to | Fangda (Jiangxi) Property Development Co., Ltd. |
Fangda Hongjun Investment | Refers to | Shenzhen Hongjun Investment Co., Ltd. |
Fangda Investment | Refers to | Shenzhen Fangda Investment Partnership (Limited Partnership) |
Fangda Lifu Investment | Refers to | Shenzhen Lifu Investment Co., Ltd |
Fangda Xunfu Investment | Refers to | Shenzhen Xunfu Investment Co., Ltd |
Yunzhu | Refers to | Shenzhen Fangda Yunzhu Technology Co., Ltd. |
Fangda Zhijian | Refers to | Shanghai Fangda Zhijian Technology Co., Ltd |
SZSE | Refers to | Shenzhen Stock Exchange |
Chapter II About the Company and Financial HighlightsI. Company profiles
Stock ID | Fangda Group, Fangda B | Stock code | 000055, 200055 |
Modified stock ID (if any) | No | ||
Stock Exchange | Shenzhen Stock Exchange | ||
Chinese name | China Fangda Group Co., Ltd. | ||
Chinese abbreviation | Fangda Group | ||
English name (if any) | CHINA FANGDA GROUP CO., LTD. | ||
English abbreviation (if any) | CFGC | ||
Legal representative | Xiong Jianming | ||
Registered address | Fangda Technology Building, Kejinan 12th Avenue, High-tech Zone, Hi-tech Park South Zone, Nanshan District, Shenzhen, PR China. | ||
Zip code | 518057 | ||
Changes in the Company's registered address | No | ||
Office address | 39th Floor, Building T1, Fangda Town, No.2, Longzhu 4th Road, Nanshan District, Shenzhen | ||
Zip code | 518055 | ||
Website | http://www.fangda.com | ||
fd@fangda.com |
II. Contacts and liaisons
Secretary of the Board | Representative of Stock Affairs | |
Name | Xiao Yangjian | Guo Linchen |
Address | 39th Floor, Building T1, Fangda Town, No.2, Longzhu 4th Road, Nanshan District, Shenzhen | 39th Floor, Building T1, Fangda Town, No.2, Longzhu 4th Road, Nanshan District, Shenzhen |
Telephone | 86(755) 26788571 ext. 6622 | 86(755) 26788571 ext. 6622 |
Fax | 86(755)26788353 | 86(755)26788353 |
zqb@fangda.com | zqb@fangda.com |
III. Information disclosure and inquiring
Website of the stock exchange where the company discloses its annual report | Shenzhen Stock Exchange http://www.szse.cn |
Names and websites of the media where the Company discloses its annual report | China Securities Journal, Security Times, Shanghai Securities Daily, Securities Daily, Hong Kong Commercial Daily and www.cninfo.com.cn |
Place for information inquiry | 39th Floor, Building T1, Fangda Town, No.2, Longzhu 4th Road, Nanshan District, Shenzhen |
IV. Registration changes
Organization code | None |
Changes in main businesses since the listing of the Company | None |
Changes in the controlling shareholders (if any) | None |
V. Other information
Public accountants employed by the Company
Public accountants | RSM Thornton (limited liability partnership) |
Address | 90122 to 90126, Foreign Trade Building, No.22, Fuchengmenwai Street, Xicheng District, Beijing, China |
Signing accountant names | Xie Peiren, Zeng Hui, Hu Gaosheng |
Sponsor engaged by the Company to perform continued supervision and guide during the reporting period
□ Applicable ? Inapplicable
Financial advisor engaged by the Company to perform continued supervision and guide during the reporting period
□ Applicable ? Inapplicable
VI. Financial HighlightWhether the Company needs to make retroactive adjustment or restatement of financial data of previous years
□ Yes ? No
2022 | 2021 | Increase/decrease | 2020 | |
Turnover (yuan) | 3,846,975,948.44 | 3,557,724,397.54 | 8.13% | 3,000,191,773.63 |
Net profit attributable to shareholders of the listed company (yuan) | 282,933,854.32 | 222,168,142.53 | 27.35% | 389,344,290.74 |
Net profit attributable to the shareholders of the listed company and after deducting of non-recurring gain/loss (yuan) | 270,965,220.96 | 167,650,395.54 | 61.63% | 376,968,729.62 |
Net cash flow generated by business operation (yuan) | 221,211,632.30 | -63,425,296.29 | 448.78% | 554,967,948.96 |
Basic earnings per share (yuan/share) | 0.26 | 0.21 | 23.81% | 0.35 |
Diluted Earnings per share (yuan/share) | 0.26 | 0.21 | 23.81% | 0.35 |
Weighted average net income/asset ratio | 5.03% | 4.09% | 0.94% | 7.37% |
End of 2022 | End of 2021 | Increase/decrease from the end of last year | End of 2020 | |
Total asset (yuan) | 12,745,185,294.02 | 12,261,338,518.66 | 3.95% | 11,891,623,391.03 |
Net profit attributable to the shareholders of | 5,749,940,874.92 | 5,524,039,886.94 | 4.09% | 5,392,694,939.64 |
The Company's net profit before and after non-recurring gains and losses was negative for the last three fiscal years, and the latestaudit report showed uncertainty about the Company's ability to continue operating
□ Yes ? No
Net profit before and after deducting non-re current gains and losses is negative
□ Yes ? No
VII. 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
There is no difference in net profits and assets in financial statements disclosed according to the international and Chinese accountstandards during the report period.
2. Differences in net profits and assets in financial statements disclosed according to the overseas andChinese account standards
□ Applicable ? Inapplicable
There is no difference in net profits and assets in financial statements disclosed according to the international and Chinese accountstandards during the report period.VIII. Financial highlights by quarters
In RMB
the listed company(RMB)
Q1 | Q2 | Q3 | Q4 | |
Turnover | 651,720,353.86 | 961,342,961.44 | 1,003,211,765.08 | 1,230,700,868.06 |
Net profit attributable to the shareholders of the listed company | 43,891,930.78 | 68,793,342.99 | 101,410,271.52 | 68,838,309.03 |
Net profit attributable to the shareholders of the listed company and after deducting of non-recurring gain/loss | 39,236,476.80 | 65,881,098.22 | 89,949,879.19 | 75,897,766.75 |
Cash flow generated by business operations, net | -304,745,092.98 | -1,835,700.06 | 97,245,314.13 | 430,547,111.21 |
Where there is difference between the above-mentioned financial data or sum and related financial data in quarter report andinterim report disclosed by the Company
□ Yes ? No
IX. Accidental gain/loss item and amount
? Applicable □ Inapplicable
In RMB
Item | 2022 | 2021 | 2020 | Notes |
Non-current asset disposal gain/loss (including the write-off part for which assets impairment provision is made) | -1,421,880.09 | -2,291,048.05 | -541,838.10 | |
Government subsidies accounted into current gain/loss account, other than those closely related to the Company's common business, comply with the national policy and continues to enjoy at certain fixed rate or amount. | 10,138,362.96 | 12,459,417.63 | 12,872,885.30 | |
Capital using expense charged to non-financial enterprises and accounted into the current income account | 8,619,807.35 | |||
Net gain between the beginning and merger day of subsidiaries generated by merger of companies under common control | 18,912.61 | 7,705,820.11 | ||
Gain/loss from change of fair value of transactional financial asset and liabilities, and investment gains from disposal of transactional financial assets and liabilities and sellable financial assets, other than valid period value instruments related to the Company's common businesses | 4,666,147.76 | 8,060,481.70 | 8,759,056.18 | |
Write-back of impairment provision of receivables for which impairment test is performed individually | 6,138,338.91 | 31,951,043.05 | ||
Gain/loss from commissioned loans | 393,485.98 | |||
Gain/loss from change of fair value of investment property measured at fair value in follow-up measurement | -10,095,973.89 | 20,921,813.65 | 19,205,841.18 | |
Other non-business income and expenditures other than the above | -2,764,570.20 | -3,897,195.15 | -34,752,456.16 | |
Less: Influenced amount of income tax | 3,172,419.69 | 12,358,051.51 | 778,490.70 | |
Influenced amount of minority shareholders' equity (after-tax) | 139,179.75 | 347,626.94 | 488,742.67 | |
Total | 11,968,633.36 | 54,517,746.99 | 12,375,561.12 | -- |
Other gain/loss items satisfying the definition of non-recurring gain/loss account:
□ Applicable ? Inapplicable
The Company has no other gain/loss items satisfying the definition of non-recurring gain/loss accountCircumstance that should be defined as recurrent profit and loss to Explanation Announcement of Information Disclosure No. 1 -Non-recurring gain/loss
□ Applicable ? Inapplicable
The Company has no circumstance that should be defined as recurrent profit and loss to Explanation Announcement ofInformation Disclosure No. 1 - Non-recurring gain/loss
Chapter III Management Discussion and AnalysisI. Major businesses of the Company during the report periodSince its conception, the company has always adhered to the philosophy "technology-based, innovation-based", and hasconstantly increased R&D investment, and build smart curtain wall, photovoltaic building integrated curtain wall (BIPV), PVDFaluminum veneer, rail transit screen door system and other products into the global industry benchmark. The comprehensivecompetitiveness of Fangda intelligent curtain wall ranks among the top three in the industry, and the platform screen door systemof rail transit is recognized as the "champion product of manufacturing industry" by the Ministry of Industry and InformationTechnology. During the reporting period, the industrial product standard Platform Screen Doors for Urban Rail Transit (CJ/T236-2022), edited by Fangda Zhiyuan Science and Technology, was officially approved and released by the Ministry of Housing andUrban-Rural Development of the People's Republic of China. At present, the Company has 7 national high-tech enterprises, 6"specialized, special and new" enterprises, and 2 provincial engineering technology research centers. It has formed an industriallayout with Shenzhen as its headquarters, Dongguan, Foshan, Nanchang, Shanghai, and Chengdu as its manufacturing bases. It hasset up branches in Singapore, India, Australia, Bangladesh, Hong Kong, and other countries and regions along the "the Belt andRoad". It is a high-tech enterprise integrating research and development, production, sales, and services. Fangda trademark wasnamed a "China Famous Trademark" and won "International Credit Brand".
In 2022, in the face of adverse effects such as shrinking demand, weakening expectations, fluctuations in raw material prices,repeated changes in the epidemic situation, and turbulence in the external environment, under the leadership of the Company'sBoard of Directors and management team, and through the joint efforts of all employees, the Company completed the 2022business objectives. During the reporting period, the Company achieved operating income of RMB3,846,975,900, an increase of
8.13% over the same period of the previous year; the net profit attributable to the parent Company's owner was RMB282,933,900,an increase of 27.35% over the same period of the previous year. Net profit after recurring gains and losses was RMB270,965,200,an increase of 61.63% over the same period of the previous year. By the end of the reporting period, the Company's order reservereached RMB7,887,702,400 (excluding real estate pre-sale). This represents an increase of 12.87% over the same period in theprevious year, which was 2.05 times the operating income in 2022 H1, laying the foundation for the Company's production andoperation in 2023.
(I) Smart curtain wall system and material
1. Industry development
The development of the building curtain wall industry is closely related to the development of the national economy. TheCentral Economic Work Conference in December 2022 put "efforts to expand domestic demand" at the top of the economic workin 2023. With the introduction of the State Council's Strategic Plan for Expanding Domestic Demand (2022-2035) and the"Fourteenth Five-Year Plan" to expand domestic demand, the adjustment of domestic epidemic prevention and control measures,provinces across the country have successively released plans for major projects in 2023 and set investment growth targets. Afterthe Spring Festival in 2023, the country has accelerated the resumption of work and production, and the construction progress ofmajor projects will be accelerated. The building curtain wall industry will also usher in new development opportunities.
2. Business Status
(1) Main products and purposes
Smart curtain walls are among the Company's major products and have been widely used in high-end office buildings,corporate headquarters, urban complexes, high-end residences and hotels, urban public buildings, and other applications.
By focusing on intelligence, low-carbon, environmental protection, and sustainability, the smart curtain wall and materialindustry fosters the development of curtain walls and innovative materials in China. The Company has a strong R&D capability aswell as a sophisticated PVDF aluminum veneer production and manufacturing base. The intelligent curtain wall technology has
been widely deployed in significant projects in more than 160 cities around the world, integrating energy reduction, environmentalprotection, and intelligence. It has numerous times received the Luban Award (National Excellent Engineering Award), China'shighest construction award. Its competitiveness is among the highest in the world, and it is a well-known brand in the worldwidehigh-end curtain wall business.
(2) Main business modes, specific risks and changes;
During the reporting period, the Company's main business model did not change. The Company's smart curtain wall designand construction contract orders are mainly obtained through the bidding mode (open bidding, invitational bidding). Based on theorders, the Company provides the overall solution of design, raw material procurement, production and processing, constructionand installation and after-sales service. Due to the long period of order implementation, it is greatly affected by national industrialpolicies, raw material prices, and fluctuations in the labor market. Different orders have different technical requirements. It isimpossible to simply copy the existing experience, and the requirements for technology and management are relatively high.
(3) Market competition pattern in which the Company is located and the Company's market position
The domestic building curtain wall market has increasingly grown in recent years, and industry competition has increased.The market gradually eliminates small and medium-sized firms with limited scale and low qualifications, increasing industryconcentration. The industry's leading businesses are increasing their market share in the high-end curtain wall market throughmanagement and brand advantages, and the rate of development is likely to accelerate further. Scientific and technologicalinnovation based on intelligence, assembly, BIM, VR and other technologies continues to deepen. In the future, along with thewave of industrial upgrading, green building, scientific and technological innovation, information technology, etc. will become animportant driving force for the new round of growth cycle of the industry. The domestic building curtain wall market still hasbright prospects for the development of leading companies in the industry.
Fangda Jianke Co., Ltd. has the highest qualifications for curtain wall design and construction enterprises in China - the first-class qualification for professional contracting of architectural curtain wall engineering and the first-class qualification forarchitectural curtain wall engineering design. It is one of the leaders in China's curtain wall industry. Fangda Jianke has won thehighest awards in the national construction industry, including "Luban Award", "National Quality Engineering Award", "ZhanTianyou Civil Engineering Award", "China Building Decoration Award", and over 200 provincial and ministerial awards. FangdaJianke has participated in the preparation of more than 20 national or industrial standards such as the Design Standard for EnergyEfficiency of Public Buildings, and has created 18 new records for Chinese enterprises. It is an intellectual property demonstrationenterprise in Guangdong Province. In the industry across the country, the Company is the earliest to establish R&D institutionssuch as corporate postdoctoral workstations, engineering technology centers, and research and design institutes. The autonomousinnovation capacity and technical level of the high-end curtain wall industry have reached the advanced level of the same industryin China, promoting technological progress and development.
(4) Business drive
In period During the, the curtain wall system and materials industry realized operating income of RMB2,877,126,200, anincrease of 11.31% over the same period of the previous year; the net profit was RMB154,800,800, an increase of 140.60%; witha gross margin of 17.73%, up 3.24 percentages over the same period of last year. The key drivers of performance are as follows:
① Actively plan the market layout, and the order reserve continues to grow
In 2022, under the severe and complex environment, the company actively planned the market layout of high-end curtainwalls at home and abroad, and deeply cultivated key regions and overseas projects such as the Greater Bay Area of Guangdong,Hong Kong and Macao, the Yangtze River Delta, and Chengdu and Chongqing. With the technology accumulation and brandadvantages, the number of new bid winning and signed orders reached RMB4,838,168,800, and the number of large landmarkprojects and enterprise headquarters projects increased. The number of large orders of 100 million yuan was frequent, and overseasorders also reached a record high. Among them, the signing of major landmark projects, such as the high-end office building ofmore than 300 meters - Jinan CITIC Pacific Central Business District (Jinan Zun) project, the permanent site project of theGuangzhou Nansha International Financial Forum (IFF), and the Yunsongjian project in Qujiang, Xi'an, has further improved the
recognition and social influence of the industry. With the signing of a large number of corporate headquarters projects, such asAnbang Property Insurance Shenzhen Headquarters Building, Shenzhen Youbixuan Robot Building, China Electronics ShenzhenBay Super Headquarters Building, Shenzhen Zhongjin Building, ByteDance Shenzhen Headquarters Building, ShenzhenChuangjin Hexin Headquarters Building, and Guangzhou CCCC South Headquarters Base Area C project, the advantages of theCompany's leading enterprises have been further highlighted. In 2022, the Company promoted the layout of the internationalmarket, and the overseas order volume rose against the trend. It won the orders for the WPH Hospital Project, VMCTC Project,Seafarers and other projects in Melbourne, Australia, highlighting the high recognition of the other big brands in the overseasmarket. By the end of the reporting period, the Company's order reserve of high-end curtain wall system and materials industrywas RMB6,448,575,400, an increase of 19.36% over the same period of the previous year, which was 2.24 times the operatingrevenue of curtain wall system and materials industry in 2022, laying a solid foundation for the sustainable and healthydevelopment of the Company.
②Strengthen continuous innovation and empower the Company's high-quality developmentThe six subsidiaries of the Company engaged in smart curtain wall system and material industry are all national high-techenterprises, five of which are "specialized and new" enterprises, and have been awarded the honors of "National IntellectualProperty Advantage Enterprise", "Specialized" Little Giant "Enterprise," Jiangxi Intelligent Manufacturing Benchmark Enterprise", and enterprise innovation record. By the end of the reporting period, the Company has successively obtained 598 patentedtechnologies for curtain wall products, 19 software copyrights, and participated in the preparation of 22 national/industrialtechnical specifications and standards, effectively promoting the technical progress and development of the high-end curtain wallindustry. During the reporting period, the Company used continuous innovation to solve customer technical pain points and supplyproducts and technical solutions required by innovation. At the same time, the company offered technical support for the projectduration and quality, improved customer satisfaction and influence, and assisted and empowered the Company's high-qualitydevelopment with the whole process and all-around curtain wall project service system.
③Promote digital construction and improve management and operation efficiency
With the rapid development of the new generation of information technology such as cloud computing, big data, artificialintelligence, etc., the Company actively promotes digital construction, taking the whole process of fine control as the main line,and strives to achieve cost reduction, efficiency increase, quality improvement, innovation, and create an efficient managementand operation organization. During the reporting period, the Company integrated cutting-edge information technologies such asBIM, cloud computing, mobile Internet, and improved the precise management and sharing of data flow, capital flow, andinformation flow by upgrading and optimizing the existing information management platform, improving the scientific nature ofdecision-making, and improving the company's management level and operational efficiency.
(5) Industry qualification types and validity period
The Company has a Class A qualification for building curtain wall engineering contracting and class A qualification forbuilding curtain wall engineering design. It is the highest level for curtain wall design and construction companies in China.During the reporting period, the Company's relevant qualifications have not changed significantly, and the validity period has notexpired.
(6) Quality control system, implementation standards, control measures and overall evaluation
Quality control system: As a leading enterprise of high-end curtain wall, the Company pays attention to quality management.It is the first in the industry to pass ISO9001, ISO14001, OHSAS18001 international and domestic dual certification, GB/T29490intellectual property management system certification, and is the first to establish sales, design, supply, production, one-stopquality control system such as construction, after-sales, customer service, etc., implement strict quality control and supervision foreach link, and create a strong quality management system.
Implementation of the standard: In the process of building curtain wall business, the Company strictly complies withGB/T21086-2007 "Building Curtain Wall", JG/T231-2007 "Building Glass Lighting Roof" and other national and industrialstandards.
Control measures: The Company has established complete and effective quality control measures and quality managementorganization, introduced digital information management, and digitally coded the company's businesses, various raw materials,factory workshop and construction site operation procedures through computer information integration system, The eight systems(CRM customer relationship management system, OA office system, HR human resources system, ERP financial managementsystem, MES production management system, PMS engineering management system, VPO supply management system and QASquality safety management system) realize the rapid transmission, sharing and collaborative application of information throughcloud terminal technology. Strictly implement various quality management and control measures to provide customers with high-quality products and services.Overall evaluation: The Company's quality control system and executive standards meet the relevant requirements of thecurrent relevant national norms and standards, maintain good operation, and provide customers with stable and reliable productsand services.
(7) Major project quality problem during the reporting period
None.
(II) Rail transport screen door business
1. Industry development
As an important part of high-end manufacturing equipment, rail transit equipment is closely related to the national economicdevelopment, urban rail transit development and construction planning. With the deepening of strategic objectives such as the "theBelt and Road" construction, "new infrastructure" and "double carbon", China's urban rail transit industry has broad developmentopportunities and huge market space. In December 2022, the State Council issued the Outline of the Strategic Plan for ExpandingDomestic Demand (2022-2035), which required to accelerate the construction of transportation infrastructure, support key urbanagglomerations to take the lead in building the intercity railway network, promote the development of metropolitan (suburban)railways and urban rail transit in key metropolitan areas, and integrate the development with trunk railways. The Draft Outline ofthe Fourteenth Five-Year Plan and the Long-term Goals for 2035 proposes to speed up the construction of a powerfultransportation country. It is expected that China will add 3000 kilometers of urban rail transit operating kilometers, 3000kilometers of intercity railways and urban (suburban) railways during the "Fourteenth Five-Year Plan", and the total investmentcompleted is expected to exceed 3 trillion yuan. While the mileage of rail transit lines continues to grow, some rail transit PSDprojects built in the early stage have also entered the maintenance period, and the maintenance service business will also usher insustained and stable development space in the future.
2. Business Status
(1) Main products and purposes
The Company's main products are platform screen door systems applied to urban rail transit, and also provide operation andmaintenance services for the above products. The platform screen door system of urban rail transit is installed at the edge of theplatform of urban rail transit station to isolate the running track area from the waiting area of the platform. It is equipped with acontinuous movable door body barrier corresponding to the train door, which can be opened and closed by multi-level control,including the full-height closed screen door system, the full-height non-closed screen door system, and the half-height screen doorsystem. In addition, the Company has taken the lead in the world in successfully developing the platform safety door system thatcan be applied to the complex environment of high-speed railway, and can realize the intelligent opening of the platform safetydoor according to the different models of high-speed railway entering the station. At present, the Company is in the stage ofmarket promotion and verification, and has not yet realized external sales.
(2) Main business model
The Company's rail transit screen door equipment industry is independently operated by Fangda Zhiyuan Technology, andhas formed a relatively mature and complete management system for research and development, procurement, production andsales, with a complete industrial chain. In terms of research and development, Fangda Zhiyuan Technology has formed a researchand development project initiation mechanism that combines independent basic research with project needs; In terms of
procurement, suppliers are mainly selected and purchased by the project, and a special procurement team is set up to carry out theprocurement work; In terms of production, manage the Company's production activities according to contract requirements andcustomer's production instructions; In terms of sales, the Company's customers are metro companies around the world andelectromechanical general contracting units in the rail transit industry, all of which are direct sales, and there is no distribution.
(3) Market competition pattern in which the Company is located and the Company's market positionThe Company is one of the national high-tech enterprises engaged in the R&D, design, manufacture, installation, andoperation and maintenance of the platform screen door system of subway in China. It has taken the lead in drafting and revisingthe first national industrial standard of the platform screen door of rail transit, "Platform Screen Door of Urban Rail Transit"(CJ/T236-2022). The Company's safety door product of urban rail transit platform was awarded "single champion product ofmanufacturing industry" by the Ministry of Industry and Information Technology of the People's Republic of China. FangdaZhiyuan has successively won many honors and qualifications, such as the Guangdong Provincial Science and Technology Award,the National Key New Product Certificate, the National Torch Plan Industrialization Demonstration Project Certificate, theGuangdong Intelligent Rail Transit Platform Gate Engineering Technology Research Center, the Shenzhen Science andTechnology Progress Award, and the Shenzhen "Specialization and Innovation" Enterprise title.
Through 20 years of intensive work in the field of platform screen doors of rail transit, the Company has occupied a highmarket share in the domestic market. At the same time, the Company has continued to explore foreign markets by virtue of itstechnical advantages, and has successively obtained orders for subway platform screen door systems from Singapore, Thailand,Malaysia, India, Colombia and other countries. Up to now, the company has undertaken more than 100 subway platform doorprojects in the world, with a total of more than 80000 platform door units, and has become one of the global suppliers of platformscreen door systems for urban rail transit.
(4) Business drive
①Win the trust of customers at home and abroad with excellent technical quality
As a leading enterprise in the field of rail transit screen doors in China, the Company provides customers with integratedprofessional services of rail transit screen door system products including research and development, design, manufacturing,installation and commissioning, technical services and maintenance. The products and technologies have been applied to morethan 100 subway lines in more than 40 cities, including Beijing, Tianjin, Guangzhou, Shenzhen, Hong Kong, Singapore, etc., withsafety, reliability and availability With outstanding advantages such as maintainability, it is one of the most trusted experts of railtransit PSD system for customers at home and abroad. During the reporting period, the Company obtained orders for PSD systemsuch as Wuhan Optics Valley Ecological Corridor tourism supporting facilities - tourism special line phase I project, Shenzhenline 7 phase II, line 8 phase II and phase III projects, souther extention line of Shenyang Metro Line 2, India NCRCTC project,Singapore Santosha platform door installation project, Colombia Bogota Metro Line 1 project, as well as a number of orders forprofessional technical maintenance services for PSD metro projects in cities including Shenzhen, Wuhan, Chengdu and Tianjin.Among them, the order for PSD system of Bogota Metro Line 1 in Colombia is the Company's first project in Latin America, andalso the first rail transit project in Bogota, the capital of Colombia. The signing of the project contributes to the Company's effortsto help China and Latin America build the "the Belt and Road" and build a new development pattern of "double circulation".
During the reporting period, the Company's rail transit PSD industry had achieved an operating revenue of RMB564,551,700,an increase of 5.66% from the same period last year, and an order reserve of RMB1,439,127,000, which was 2.55 times of theoperating revenue. The Company's PSD system products have also been highly praised and recognized by many owners for theirexcellent quality and stable performance. During the reporting period, Fangda Zhiyuan Science and Technology received letters ofpraise from Shenzhen Metro Construction Group Co., Ltd. and Qingdao Metro Line 4 Co., Ltd., and won the "high-qualitysupplier" of Hohhot Metro Operation Co., Ltd., and the "advanced cooperative unit" of Tianjin Metro Line 3 Operation Co., Ltd"Excellent Outsourcing Unit Award" of Chengdu Metro Operation Co., Ltd. Operation Branch 1, "Excellent OutsourcingMaintenance Project" of Wuhan Wuhan Railway Travel Service Media Co., Ltd. Customer Service Maintenance Branch.
②Promote high-quality development of the Company with scientific and technological innovation
The Company has been deeply engaged in the subdivided field of rail transit screen door system for 20 years, and has realizedthat the core control components of platform screen door products are completely "independent and controllable", leading theindustry to break through the tight encirclement and lead the high-quality innovative development of the industry. The Company's"safety door of urban rail transit platform" product with independent intellectual property rights has been recognized by theMinistry of Industry and Information Technology of the People's Republic of China as "single champion product of manufacturingindustry". The Company also actively integrates the development achievements of the new generation of information technology,such as artificial intelligence and big data technology, and has successively developed the platform screen door system matchingthe "driverless" train, and the platform screen key component health prediction technology based on big data, which has beensuccessfully applied in many projects, such as the Noida project in India, the domestic Jinan Metro Line 2, and Qingdao MetroLine 4. During the reporting period, the subsidiary Fangda Zhiyuan Technology was identified as a "specialized and innovative"small and medium-sized enterprise, and was selected as the "Top 100 leading enterprises in Shenzhen industry" for fourconsecutive years. The visual multimedia full-height platform door project of urban rail transit developed by Fangda ZhiyuanTechnology was identified as the "innovation record of Shenzhen enterprises". The industry product standard "Platform ScreenDoor of Urban Rail Transit" (CJ/T236-2022) edited by the Ministry of Housing and Urban-Rural Development was officiallyapproved and released, and will be implemented from May 1, 2022.
(3) New energy industry
The Company has been practicing the concepts of low-carbon, energy saving, green and environmental protection. It is anearly developer and application of photovoltaic building integration (BIPV) and photovoltaic power generation system design,manufacturing, integration and operation, and has mature technology. In China, the Company has completed the first batch ofintegrated photovoltaic buildings (BIPV) and multiple distributed solar photovoltaic power stations. Jiangxi Pingxiang distributedphotovoltaic power station, Jiangxi Isuzu automobile parking lot photovoltaic power station in Nanchang City, and Songshan LakeBase photovoltaic power station in Dongguan, Guangdong, have all operated efficiently, contributing to the Company's stableprofitability and cash flow.
(IV) Real Estate
1. Changes of macroeconomic situation and industrial policy environment related to the real estate industry;industrial development status and policies of the city where the Company's main projects are located, and its impact on thefuture operating performance and profitability of the listed company;
At the end of 2022, the real estate policy entered a comprehensive easing cycle, and the financing policies such as creditsupport, bond financing support, equity financing support, domestic guarantee and foreign loan continued to be relaxed. The hotcities actively rescued the demand side of the real estate market, and improved the strong policy support. The relevant departmentsalso released space for local city-specific policies while increasing the policy loosening efforts. In particular, the Central EconomicWork Conference held in December 2022 proposed that the economic work in 2023 should focus on expanding domestic demandand ensuring the stable development of the real estate market. The implementation of policies in cities, support for rigid andimproved housing demand, etc., all indicates that the future expectations of the real estate market are improving.
The Company's real estate projects are in Shenzhen and Nanchang. Shenzhen's market remains relatively concentrated in
terms of popularity and demand. Construction of the Guangdong Hong Kong Macao Bay area has been further promoted.Shenzhen's strong development trend will be recognized by more investors as a special economic zone and a leading
demonstration area. According to the "City of Opportunity 2022" report jointly released by the China Development ResearchFoundation and PricewaterhouseCoopers, Shenzhen ranks first in China in the fields of "technology and innovation" and "businessenvironment". Shenzhen's positive image of being livable, suitable for business and business has been more recognized, and itsurban charm and influence projection are becoming stronger and wider.
In 2022, affected by the epidemic and economic downturn, the supply and demand of Nanchang real estate market declinedsignificantly, and the consumption of commercial housing market was weak, but the market has entered the end of the adjustment
period. Looking forward to 2023, under the conditions of loose policies and domestic macroeconomic recovery, the real estate
market transactions will improve. In the medium and long term, the Nanchang real estate market will generally show a trend ofstabilizing sales and prices.The Company's real estate business is still expected to contribute to the Company's profits.
2. The Company's main business model, business project format, market position and competitive advantage, mainrisks and countermeasuresThe Company's real estate business mainly adopts the business model of self-development, partial sales and partial self-supporting. At present, the Company develops, sells, and leases mainly office, commercial, and apartment properties. After yearsof unremitting efforts, the Company has acquired a wealth of experience in real estate development and operation, as well asoperating and managing its commercial and residential properties through its own professional staff.
At present, the real estate projects operated by the Company are in Shenzhen and Nanchang.
Shenzhen is located in the core area of Guangdong, Hong Kong and Macao Dawan district.The Company's Shenzhen FangdaTown project has a rapid sales and leasing rate and has been highly recognized by the Shenzhen market. At the end of thereporting period, the sales rate of Shenzhen Fangda Town project was 98.32%, and the leasing rate of self owned properties was
78.41%. However, due to the large inventory of commercial office buildings in Nanchang and the downward trend of volume andprice, the sales has slowed down. At the end of the reporting period, the sale rate of Nanchang Fangda Center project was 38.90%,and the occupancy rate of self-owned properties was 82.26%.
The Company's real estate industry will still face risks such as national macro policy regulation, and market competition inthe future. The Company will comply with policy changes, continue to in-depth optimization in brand building, marketing andpromotion, reduce operational and management risks, and maintain the Company's steady development.
3. New land reserve projects
Parcel or project name | Land location | Purpose | Land area (m2) | Building area (m2) | Obtaining method | Interests percentage | Total land price (ten thousand yuan) | Equity consideration (ten thousand yuan) |
No |
4. Total land reserve
Project/region name | Floor area (10,000 m2) | Total building area (10,000 m2) | Remaining building area (10,000 m2) |
No |
5. Main production development status
City/region | Project name | Land location | Project form | Interests percentage | Starting time | Development progress | Completion rate | Land area (m2) | Planning construction area (m2) | Area completed in this phase (m2) | Total area completed in this phase (m2) | Estimated total investment (in RMB10,000) | Accumulated total investment (in RMB10,000) |
Shenzhen Nanshan District | Fangda Town | No.2 Longzhu 4th Road | Office commercial complex | 100.00% | May 1, 2014 | 100% | 100.00% | 35,397.60 | 212,400.00 | 0 | 217,763.69 | 258,500 | 283,600 |
Hong | Fangd | No.15 | Office | 100.0 | May | 100% | 100.0 | 16,60 | 66,43 | 0 | 65,37 | 67,00 | 66,99 |
gutan New District, Nanchang | a Center | 16 Ganjiang North Avenue Fangda Center | commercial complex | 0% | 1, 2018 | 0% | 8.55 | 2.61 | 6.94 | 0 | 2.35 |
6. Main project sales
City/region | Project name | Land location | Project form | Interests percentage | Building area | Sellable area (m2) | Cumulative pre-sale (sales) area (m2) | Pre-sale (sales) area in this period (m2) | Amount of pre-sale (sales) in the current period (RMB10,000) | Cumulative settlement area (m2) | Settlement area in the current period (m2) | Settlement amount in this period (RMB10,000) |
Shenzhen Nanshan District | Fangda Town | No.2 Longzhu 4th Road | Office commercial complex | 100.00% | 212,400.00 | 93,086.25 | 91,524.39 | 2,827.66 | 14,484.72 | 91,524.39 | 2,827.66 | 14,484.72 |
Honggutan New District, Nanchang | Fangda Center | No.1516 Ganjiang North Avenue Fangda Center | Office commercial complex | 100.00% | 65,376.94 | 25,996.84 | 10,111.83 | 2,557.44 | 3,355.49 | 10,111.83 | 2,557.44 | 3,355.49 |
7. Main project lease
Project name | Land location | Project form | Interests percentage | Leasable area (m2) | Cumulative leased area (m2) | Average lease ratio |
Shenzhen Fangda Town | Shenzhen Nanshan District | Commercial and office building | 100.00% | 95,293.23 | 74,719.03 | 78.41% |
Shenzhen Fangda Building | Shenzhen Nanshan District | Office building | 100.00% | 17,725.36 | 14,074.37 | 79.40% |
Jiangxi Nanchang Science and Technology Park | Nanchang, Jiangxi Province | Plant and office building | 100.00% | 17,517.20 | 11,349.20 | 64.79% |
Jiangxi Nanchang Fangda Center | Nanchang, Jiangxi Province | Commercial and office building | 100.00% | 37,270.58 | 30,658.05 | 82.26% |
8. First-level development of land
□ Applicable ? Inapplicable
9. Financing channel
Financing source | Ending financing balance (in RMB10,000) | Financing cost range / average financing cost | Term structure (monetary unit: RMB10,000) | |||
Within 1 year | 1-2 years | 2-3 years | Over 3 years | |||
Bank loan | 133,350.00 | During the same period, the benchmark interest rate of the loan was adjusted at the agreed rate to 5.715% | 7,000.00 | 17,650.00 | 21,200.00 | 87,500.00 |
Total | 133,350.00 | 7,000.00 | 17,650.00 | 21,200.00 | 87,500.00 |
10. Development strategy and operation plan in next year
With the continuous easing of the real estate policy, the gradual improvement of the epidemic situation and the economicrecovery, Shenzhen, as the core city of the Greater Bay Area of Guangdong, Hong Kong and Macao, not only has the advantagesof the Bay Area, but also is the driving force for the development of the surrounding economy. Shenzhen's good environment forliving, industry and business will further stimulate the vitality and potential of investment. In the future, the Company will graspopportunities, continue to expand the brand effect, deepen the local market, and effectively improve the Company's operatingperformance.
The main task of the Company's real estate business in 2023 is to increase the rental rate and final sales of the ShenzhenFangdacheng project, and vigorously promote the sales of the Nanchang Fangda Town project. At the same time, the Companywill also integrate and optimize the Company's existing resources according to the latest policies, and steadily promote theapplication and approval of two urban renewal projects, Shenzhen Henggang Dakang Project and Shenzhen Fuyong FangdaBangshen.
11. Bank mortgage loan guarantee provided for commercial housing purchasers
? Applicable □ Inapplicable
As of December 31, 2022, the balance of the company's guarantee for commercial housing offenders due to bank mortgageloans was RMB20,114,100.
12. Co-investment between Directors, supervisors and senior management and listed companies
□ Applicable ? Inapplicable
II. Core Competitiveness Analysis
(I) Smart curtain wall system and material
1. Advantages of technology and industry experience
The Company has worked in the field of smart curtain wall for more than 30 years, continuously strengthened technicalinnovation, grasped the development trend of curtain wall industry in the process of meeting market demand, improved thecompetitiveness of the Company's products, solutions and services, and gained rich experience in project design andimplementation and well-known cases.
As a leading enterprise in the curtain wall industry, the Company has taken the lead in setting up enterprise postdoctoralworkstations, engineering technology centers, research and design institutes and other research and development institutions in theindustry in China, creating many firsts in the industry, and is one of the preferred brands in the domestic high-end curtain wallsystem material industry. The Company's subsidiaries engaged in the smart curtain wall system and material industry are allnational high-tech enterprises, five subsidiaries are selected as "specialized, special and innovative" enterprises, and manysubsidiaries are recognized as "Guangdong Intellectual Property Demonstration Enterprise", "Shenzhen Intellectual Property
Advantage unit", "Jiangxi enterprise technology center" and "Nanchang engineering technology research center". The Company'sindependent innovation and continuous innovation have created the Company's leading technical level and manufacturing capacity.
2. Advantages of product service and refined management
With years of technical precipitation and experience accumulation, the Company's smart curtain wall system and materialindustry has formed an overall solution integrating R&D, design, production, project management, construction and maintenanceservices. The industry is complete and has strong comprehensive strength in terms of quality, cost and service.The Company has vigorously promoted intelligent construction and fine management in various business modules,effectively improved the quality of products and services and enhanced the competitiveness of the Company. BIM Technology,PMS project management platform, MES production management system, VPO supply management platform and otherinformation management tools are applied to curtain wall design, manufacturing and construction management, combined withcloud computing, big data, mobile application, Internet of things and other technologies to realize the rapid transmission andsharing of information, collaborative application, open up various management modules, improve the scientificity and efficiencyof decision-making, speed up the response and execution ability of business, and improve the fine management.
3. Brand equity
Since its establishment, the Company has gained high recognition from the industry and many professionals by virtue of itstechnical advantages and comprehensive service strength, and has a good reputation. The Company has won "National QualityAward", "National Quality Engineering Award", Luban Award, Zhan Tianyou award, China Architectural Decoration Award andmore than 200 provincial and ministerial awards. It has created thousands of landmark projects worldwide and has become one ofthe leading brands in the field of high-end curtain wall. During the reporting period, the Shenzhen University of Technologyproject of the curtain wall system contracted by Fangda Jianke was selected for the 2021-2022 China Construction EngineeringDecoration Award, and the Shenzhen Hanjing Center and Chongqing Raffles Plaza projects contracted by Fangda Jianke wereselected for the 2022 International High-Rise Award.
4. Industrial layout advantages
After years of accumulation and continuous investment in facilities and equipment, the intelligent curtain wall system andmaterial industry of the Company has built a domestic industrial layout with Shenzhen as the headquarters and production bases inShanghai, Chengdu, Nanchang, Dongguan, Foshan and other places. Among them, Dongguan Songshanhu base is one of the mostmodern high-end curtain wall system production bases in the industry, It has industry-leading R&D, design, manufacturing andcurtain wall system delivery capabilities. The Company's production base continues to increase digital and intelligent construction,introduces intelligent equipment, and uses Internet technology to track the Company's products and continuously improveefficiency. In order to meet the needs of the Company's future operation and development, the company plans to invest in theconstruction of a low-carbon intelligent manufacturing base in Ganzhou. The improved production base layout provides animportant guarantee for improving the market share and comprehensive competitiveness.
5. Talent
The Company always adheres to the "people-oriented" talent concept, actively introduces and trains all kinds of professionaltechnology and management talents, and is committed to building an efficient management and operation team. After years ofdevelopment, the Company has an experienced senior management team and middle-level managers with strong execution ability,as well as a complete talent training system and talent reserve. During the reporting period, we continuously optimized theeffective incentive and assessment system and implemented quantitative management. In order to meet the needs of the Company'sbusiness development, the Company continued to introduce outstanding fresh graduates, build an industry university researchintegration platform, promote school-enterprise cooperation and industry-university combination mechanism, and ensure that theCompany's scientific research strength in the field of high-end curtain wall is at the leading level in the industry. Over the years, ithas always paid attention to the cultivation of "craftsman spirit". It has held "Fangda Craftsman" skill competition every year and"Fangda Lecture Hall" training from time to time, continuously improved the theoretical knowledge and operation skill level of
employees, created a skilled talent team with reasonable structure, exquisite technology and excellent style, cultivated a number of"Shenzhen 100 excellent craftsmen", and has been rated as "Shenzhen craftsman cultivation demonstration unit" for many times.(II) Rail transport screen door business
1. Technical R&D advantage
The Company has always attached importance to technological innovation, and has taken the lead in developing the railtransit screen door system with independent intellectual property rights in China, breaking the monopoly of foreign enterprises inthe field of rail transit screen doors in China. After years of continuous engineering practice and technological innovation, theCompany has accumulated technical reserves in the promotion and application of product technology. The Company's technologyresearch and development system is mature, and the platform screen door system research and development center of FangdaZhiyuan Technology was awarded the Guangdong Provincial Engineering Technology Center by the Ministry of Science andTechnology of Guangdong Province; The technical research and development team has rich experience, and its members havewon provincial and municipal awards for scientific and technological progress. The "platform safety door of urban rail transit" ofFangda Zhiyuan Technology was recognized as the "single champion product of manufacturing industry" by the Ministry ofIndustry and Information Technology. Fangda Zhiyuan Technology was selected as the "specialized and new" enterprise inShenzhen, and took the lead in drafting the first industrial standard of "platform safety door of urban rail transit" in China. Theproject of visual multimedia full-height platform door of urban rail transit developed by Fangda Zhiyuan Technology wasrecognized as the "innovation record of Shenzhen enterprises". It shows the continuous comprehensive leading strength andindustry benchmark position of Fangda in the field of urban rail transit equipment.During the operation and development, the Company has always maintained a high level of R&D investment, formed awealth of innovative achievements, and obtained a number of intellectual property rights in the structure, electrical, control,system reliability and safety of PSD system. Through the accumulation of its own patents, software copyrights and proprietarytechnologies, the Company has built a completely independent and controllable platform for the basic technology of platform doorcontrol system. From DCU and other core components to control algorithms, they are developed and produced by the COmpany,which can quickly diagnose and eliminate various system control problems. On the basis of the basic platform, the Company hassuccessively developed anti-pinch system based on image recognition, embedded display system, intelligent operation andmaintenance system and other modules, which can be flexibly customized according to specific requirements and can better meetcustomer needs. In addition, through the practice of a large number of urban rail transit projects at home and abroad over the years,the Company has also formed a rich technical accumulation in the intelligent manufacturing process, quality control andconstruction technology of the core components of platform screen door system products. The Company has innovativelydeveloped safety door products applied to high-speed railway platforms. Its main competitiveness is that it can adapt to a varietyof trains with different body specifications and different door opening positions. In the future, this product can be applied to high-speed railway platform and intercity railway platform in a large scale.
2. Market advantage
The Company is the pioneer and leader of the platform screen door system for rail transit in China, and its platform screendoor system products cover more than 50% of the cities with urban rail transit in China. As part of the "Belt and Road Initiative,"the Company has successfully received important project orders in Singapore, Malaysia, Thailand, India and other countries andregions along the way. The Company won the first order for the Bogota Metro Line 1 project in Colombia during the reportingperiod as a result of its extensive experience in overseas project implementation and strong market brand awareness. TheCompany also successfully implemented the development concept of "going out" of Chinese equipment during the reportingperiod. The recognition of Fangda brand overseas has been increasing, and it has become the largest manufacturer and serviceprovider of rail transit screen door system in the world.
The operation and maintenance of rail transit have high requirements for the safety and reliability of products and equipment.The Company's leading technology, reliable product quality and efficient service have won a good market reputation, maintained astable cooperative relationship with customers and accumulated rich market resources.
3. Industry chain advantage
As the first enterprise to enter the metro screen door industry in China, the Company is able to provide R & D, design,manufacturing, engineering construction, technical services, technical training, system maintenance, spare parts supply as part ofthe whole industry chain. A complete industrial chain helps the Company to realize resource sharing at all stages and meet themarket demand for specialized products and services, thereby effectively reducing the Company's production and managementcosts and improving profitability and competitive advantages.With many domestic metro platform screen door systems entering the maintenance period, the Company actively expands theindustrial chain and takes the lead in developing Metro maintenance business in China. The intelligent maintenance managementsystem developed by the Company can count and analyze the operation status of site equipment in real time, remotely guide theon-site technical service team, and provide professional technical support to customers in a timely and efficient manner. TheCompany's operation and maintenance management service team has now spread to more than 30 cities around the world. With theimprovement of the team's ability and the recognition of customers, the Company's sales amount of technical services will alsoincrease year by year.
4. Professional and stable team
The Company has a technical talent team of rail transit PSD system with stable structure and excellent professional ability.The core technical team of the Company has outstanding professional and technical level, including highly educated personnelsuch as master's degree and senior professional and technical personnel such as senior engineers. Its specialties cover mechanicalengineering, electrical, system reliability, railway communication, software, engineering mechanics and other fields. The averageage of the key personnel of the management and R&D team is more than 7 years, showing high stability, having a commonbusiness philosophy, and being able to effectively form consensus on various issues and implement them. At the same time, themanagement and R&D team have a deep understanding of the Company's business and industry, can quickly respond to changes inthe external competitive environment, and ensure the sustainable and stable development of the industry.
(3) New energy industry
The Company's new energy industry mainly focuses on the development of new energy-saving technology applications suchas solar photovoltaic application and photovoltaic building integration (BIPV), and its business scope covers two major industries:
construction and photovoltaic power generation. The Company actively developed solar photovoltaic power generation curtainwall system technology 20 years ago. It is one of the earliest enterprises in China that independently mastered and had independentintellectual property rights to engage in the design, manufacturing and integration of solar photovoltaic building integration (BIPV)system.
Distributed solar power PV power generation is closely related to the Company's curtain wall business. Part of the distributedsolar power PV systems are closely related to construction. Moreover, the Company has more than 20 years' experience inelectrical product integration. The Company also has more than 30 years' experience in construction management and has thelevel-1 construction curtain wall engineering qualification and electrical installation engineering qualification.
(IV) Real Estate
The Company is located in the core area of Dawan District, Guangdong, Hong Kong and Macao. It adopts differentiatedcompetition strategy and focuses on the development of urban renewal projects in Shenzhen. Benefiting from the dividend ofShenzhen's rapid economic development and the opportunity of further promotion of Shenzhen-Hong Kong integration, it isexpected that the company's real estate business will contribute profits to the Company in the future.
III. Core business analysis
1. Summary
See "I. Main Business Conditions of the Company During the Reporting Period" in Chapter III Management Discussion andAnalysis.
2. Income and costs
(1) Turnover composition
In RMB
2022 | 2021 | YOY change (%) | |||
Amount | Proportion in operating costs (%) | Amount | Proportion in operating costs (%) | ||
Total turnover | 3,846,975,948.44 | 100% | 3,557,724,397.54 | 100% | 8.13% |
Industry | |||||
Metal production | 2,877,126,181.59 | 74.78% | 2,584,704,014.98 | 72.65% | 11.31% |
Railroad industry | 564,551,749.10 | 14.68% | 534,310,567.88 | 15.02% | 5.66% |
New energy industry | 19,707,669.06 | 0.51% | 19,285,405.44 | 0.54% | 2.19% |
Real estate | 369,529,923.55 | 9.61% | 407,329,798.11 | 11.45% | -9.28% |
Others | 16,060,425.14 | 0.42% | 12,094,611.13 | 0.34% | 32.79% |
Product | |||||
Curtain wall system and materials | 2,877,126,181.59 | 74.78% | 2,584,704,014.98 | 72.65% | 11.31% |
Subway screen door and service | 564,551,749.10 | 14.68% | 534,310,567.88 | 15.02% | 5.66% |
PV power generation products | 19,707,669.06 | 0.51% | 19,285,405.44 | 0.54% | 2.19% |
Real estate rental and sales and property services | 369,529,923.55 | 9.61% | 407,329,798.11 | 11.45% | -9.28% |
Others | 16,060,425.14 | 0.42% | 12,094,611.13 | 0.34% | 32.79% |
District | |||||
In China | 3,563,436,690.09 | 92.63% | 3,366,465,225.36 | 94.62% | 5.85% |
Out of China | 283,539,258.35 | 7.37% | 191,259,172.18 | 5.38% | 48.25% |
Sub-sales mode | |||||
Direct sales | 3,846,975,948.44 | 100.00% | 3,557,724,397.54 | 100.00% | 8.13% |
(2) Industry, product, region and sales mode accounting for more than 10% of the Company's operating revenue oroperating profit? Applicable □ Inapplicable
In RMB
Turnover | Operating cost | Gross margin | Year-on-year change in operating revenue | Year-on-year change in operating costs | Year-on-year change in gross margin | |
Industry | ||||||
Metal production | 2,877,126,181.59 | 2,367,077,665.54 | 17.73% | 11.31% | 7.10% | 3.24% |
Real estate | 369,529,923.55 | 106,087,632.23 | 71.29% | -9.28% | -33.27% | 10.32% |
Railroad industry | 564,551,749.10 | 433,680,806.95 | 23.18% | 5.66% | 13.06% | -5.03% |
Product | ||||||
Curtain wall system and materials | 2,877,126,181.59 | 2,367,077,665.54 | 17.73% | 11.31% | 7.10% | 3.24% |
Real estate rental and sales and property services | 369,529,923.55 | 106,087,632.23 | 71.29% | -9.28% | -33.27% | 10.32% |
Subway screen door and service | 564,551,749.10 | 433,680,806.95 | 23.18% | 5.66% | 13.06% | -5.03% |
District | ||||||
In China | 3,563,436,690.09 | 2,698,278,611.93 | 24.28% | 5.85% | 3.55% | 1.69% |
Sub-sales mode | ||||||
Direct sales | 3,846,975,948.44 | 2,917,753,967.52 | 24.15% | 8.13% | 5.67% | 1.76% |
Main business statistics adjusted in the recent one year with the statistics criteria adjusted in the report period
□ Applicable ? Inapplicable
The Company needs to comply with the disclosure requirements of the decoration and decoration industry in the Guidelines for theSelf-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.
In RMB
Turnover | Operating cost | Gross margin | Year-on-year change in operating revenue | Year-on-year change in operating costs | Year-on-year change in gross margin | |
Industry | ||||||
Metal production | 2,877,126,181.59 | 2,367,077,665.54 | 17.73% | 11.31% | 7.10% | 3.24% |
Product | ||||||
Curtain wall system and materials | 2,877,126,181.59 | 2,367,077,665.54 | 17.73% | 11.31% | 7.10% | 3.24% |
District | ||||||
In China | 2,785,927,384.79 | 2,293,586,813.99 | 17.67% | 11.57% | 7.23% | 3.33% |
Main business statistics adjusted in the recent one year with the statistics criteria adjusted in the report period
□ Applicable ? Inapplicable
Different business types of the Company
In RMB
Business type | Turnover | Operating cost | Gross margin |
Curtain wall system and materials | 2,877,126,181.59 | 2,367,077,665.54 | 17.73% |
Whether the Company runs business through the Internet
□ Yes ? No
Whether the Company runs overseas projects? Yes □ No
No. | Location | Number of overseas projects | Total amount of overseas project contracts (RMB10,000) |
1 | Australia | 9 | 26,014.67 |
2 | Asia | 3 | 975.00 |
Total | 12 | 26,989.66 |
(3) The physical sales revenue is high the labor service revenue
□ Yes ? No
(4) Performance of major sales contracts and major purchase contracts signed by the Company as of the reporting period
□ Applicable ? Inapplicable
(5) Operation cost composition
In RMB
Industry | Item | 2022 | 2021 | YOY change (%) | ||
Amount | Proportion in operating costs (%) | Amount | Proportion in operating costs (%) | |||
Metal production | Raw materials | 1,570,953,065.18 | 66.37% | 1,390,170,739.40 | 62.90% | 3.47% |
Metal production | Installation and engineering costs | 517,779,780.10 | 21.87% | 539,914,574.90 | 24.43% | -2.56% |
Metal production | Labor cost | 151,791,696.66 | 6.41% | 146,644,527.60 | 6.64% | -0.23% |
Railroad industry | Raw materials | 284,311,719.62 | 65.56% | 241,731,373.92 | 63.02% | 2.54% |
Railroad industry | Installation and engineering costs | 59,413,282.43 | 13.70% | 73,430,526.18 | 19.14% | -5.44% |
Railroad industry | Labor cost | 50,149,325.46 | 11.56% | 38,231,345.27 | 9.97% | 1.59% |
Real estate | Construction and installation cost | 28,586,334.63 | 26.95% | 49,779,295.03 | 31.31% | -4.36% |
Real estate | Land cost | 18,256,200.85 | 17.21% | 33,068,762.42 | 20.80% | -3.59% |
Real estate | Loan interest | 2,181,840.72 | 2.06% | 3,704,260.45 | 2.33% | -0.27% |
Real estate | Labor cost | 15,720,818.75 | 14.82% | 16,716,890.93 | 10.52% | 4.30% |
Note: In addition to the above costs, other costs are mainly energy costs such as water, electricity and rent.Main business cost
In RMB
Cost composition | Business type | 2022 | 2021 | YOY change (%) | ||
Amount | Proportion in operating costs (%) | Amount | Proportion in operating costs (%) | |||
Raw materials | Curtain wall system and materials | 1,570,953,065.18 | 66.37% | 1,390,170,739.40 | 62.90% | 3.47% |
Installation and engineering costs | Curtain wall system and materials | 517,779,780.10 | 21.87% | 539,914,574.90 | 24.43% | -2.56% |
Labor cost | Curtain wall system and materials | 151,791,696.66 | 6.41% | 146,644,527.60 | 6.64% | -0.23% |
(6) Change to the consolidation scope in the report period
? Yes □ NoThe Company added a wholly-owned subsidiary in the current period by way of establishment: Jiangxi Fangda IntelligentManufacturing Technology Co., Ltd.
(7) Major changes or adjustment of business, products or services in the report period
□ Applicable ? Inapplicable
(8) Major sales customers and suppliers
Main customers
Total sales amount to top 5 customers (RMB) | 686,549,005.85 |
Proportion of sales to top 5 customers in the annual sales | 17.85% |
Percentage of sales of related parties in top 5 customers in the annual sales | 0.00% |
Information of the Company's top 5 customers
No. | Customer | Sales (RMB) | Percentage in the annual sales |
1 | No.1 | 163,742,779.52 | 4.26% |
2 | No.2 | 158,701,259.46 | 4.13% |
3 | Guangdong Mingchuang Software Technology Co., Ltd. | 141,215,833.66 | 3.67% |
4 | China Telling Co., Ltd. | 119,519,735.10 | 3.11% |
5 | China Construction Sixth Engineering Division Corp. Ltd. | 103,369,398.11 | 2.69% |
Total | -- | 686,549,005.85 | 17.85% |
Other information about major customers
□ Applicable ? Inapplicable
Main suppliers
Purchase amount of top 5 suppliers (RMB) | 676,827,109.00 |
Proportion of purchase amount of top 5 suppliers in the total annual purchase amount | 22.03% |
Percentage of purchasing amount of related parties in top 5 customers in the annual purchasing amount | 0.00% |
Information of the Company's top 5 suppliers
No. | Supplier | Purchase amount (RMB) | Percentage in the annual purchase amount |
1 | No.1 | 280,807,145.42 | 9.14% |
2 | No.2 | 145,607,830.88 | 4.74% |
3 | No.3 | 90,872,302.97 | 2.96% |
4 | No.4 | 82,654,817.01 | 2.69% |
5 | No.5 | 76,885,012.72 | 2.50% |
Total | -- | 676,827,109.00 | 22.03% |
Other information about major suppliers
□ Applicable ? Inapplicable
3. Expenses
In RMB
2022 | 2021 | YOY change (%) | Notes | |
Sales expense | 54,970,163.01 | 59,877,614.73 | -8.20% | |
Administrative expense | 157,138,338.83 | 169,443,658.83 | -7.26% | |
Financial expenses | 96,701,795.34 | 103,001,595.93 | -6.12% | |
R&D cost | 161,812,913.02 | 152,973,582.38 | 5.78% |
4. R&D investment
? Applicable □ Inapplicable
R&D project name | Purpose | Progress | Objective | Expected impact on the future development of the Company |
Research and development of new industrialized curtain wall system | Improve product quality, improve installation efficiency, improve construction safety and reduce energy consumption in the construction process. | Partially completed, completed the research and development of prefabricated aluminum curtain wall system | Improve the development level of assembly and maintain the leading position in the industry. | In line with the national policy guidance, it has good market prospects and can adapt to the development trend of building curtain wall in the future. |
Research and development of intelligent curtain wall system | Reduce energy consumption and improve the performance of intelligent products. | In progress, completed the trial production of wind and rain smart curtain wall samples | Improve the intelligent level of the system and meet the needs of market development. | Achieve the design concept of energy-saving, emission reduction and green buildings, and improve the market competitiveness of products |
Research and development of smart factory flexible production system | Improve production efficiency and adapt to customized production. | Continue to promote product research and selection, and complete the intelligent construction of some production lines | Improve production capacity, output and product quality, and reduce production costs. | Improve the production support capacity and improve the automation and intelligence level of production equipment. |
Research and development of new generation rail transit PSD control system | Enhance product safety, reliability and availability to meet the advanced requirements of the core system. | In progress, continuous propulsion system test | Optimize product system performance and maintain industry leadership. | Further enhance the independent R&D capability and improve the market competitiveness of the Company in the field of PSD. |
Research and development of new generation full height platform door | Research and development of new products to improve market competitiveness. | In progress, the trial production of the system sample is completed | Optimize the product structure to meet the needs of market development. | Expand the application scenarios of the Company's products and enhance the leading edge of industry technology. |
Study on nano composite thermal insulation aluminum veneer | Research and development of new products to meet market demand. | In progress, promote sample trial production and performance test | Diversify product categories and respond to national energy conservation and environmental protection policies. | Develop products that conform to the concept of green and environmentally friendly buildings, save energy and reduce emissions, and enhance competitiveness. |
R&D personnel
2022 | 2021 | Change | |
R&D staff number | 589 | 563 | 4.62% |
R&D staff percentage | 20.19% | 19.03% | 1.16% |
Academic structure of R&D personnel | |||
Bachelor | 368 | 324 | 13.58% |
Master's degree | 7 | 7 | 0.00% |
Age composition of R&D personnel | |||
Under 30 | 249 | 235 | 5.96% |
30-40 | 227 | 221 | 2.71% |
R&D investment
2022 | 2021 | Change | |
R&D investment amount (RMB) | 161,812,913.02 | 152,973,582.38 | 5.78% |
Investment percentage in operation turnover | 4.21% | 4.30% | -0.09% |
Capitalization of R&D investment amount (RMB) | 0.00 | 0.00 | 0.00% |
Percentage of capitalization of R&D investment in the R&D investment | 0.00% | 0.00% | 0.00% |
Reasons and effects of major changes in the composition of R&D personnel of the Company
□ Applicable ? Inapplicable
Reason for the increase in the percentage of R&D investment in the business turnover
□ Applicable ? Inapplicable
Explanation of the increase in the capitalization of R&D investment
□ Applicable ? Inapplicable
5. Cash flow
In RMB
Item | 2022 | 2021 | YOY change (%) |
Sub-total of cash inflow from business | 3,570,297,784.48 | 3,615,387,540.90 | -1.25% |
operations | |||
Sub-total of cash outflow from business operations | 3,349,086,152.18 | 3,678,812,837.19 | -8.96% |
Cash flow generated by business operations, net | 221,211,632.30 | -63,425,296.29 | 448.78% |
Sub-total of cash inflow generated from investment | 2,909,289,689.63 | 2,578,992,220.76 | 12.81% |
Subtotal of cash outflows | 3,000,271,914.92 | 2,695,492,878.10 | 11.31% |
Cash flow generated by investment activities, net | -90,982,225.29 | -116,500,657.34 | 21.90% |
Subtotal of cash inflow from financing activities | 1,670,354,493.21 | 2,360,667,296.03 | -29.24% |
Subtotal of cash outflow from financing activities | 1,917,379,871.34 | 2,311,447,620.31 | -17.05% |
Net cash flow generated by financing activities | -247,025,378.13 | 49,219,675.72 | -601.88% |
Net increase in cash and cash equivalents | -108,573,142.53 | -136,135,458.15 | 20.25% |
Explanation of major changes in related data from the same period last year? Applicable □ InapplicableThe net cash flow from operating activities of the Company during the reporting period increased by 448.78% compared with theprevious year, mainly due to the settlement and payment of land value-added tax of RMB349,316,800 in 2021 for the real estatebusiness Shenzhen Fangda Town Project; The net cash flow from investment activities increased by 21.90% over the previousyear, mainly due to the net cash inflow from the recovery of the balance of financial investment in the previous period; The netcash flow from financing activities decreased by 601.88% compared with the previous year, mainly due to the decrease in the netincome and expenditure of bank loans and the payment of dividends in the current period.Explanation of major difference between the cash flow generated by operating activities and the net profit in the year
□ Applicable ? Inapplicable
IV. Non-core business analysis
? Applicable □ Inapplicable
In RMB
Amount | Profit percentage | Reason | Whether continuous | |
Investment income | 6,185,954.47 | 1.89% | No | |
Gain/loss caused by changes in fair value | -10,113,947.45 | -3.09% | Mainly due to adjustment of fair value of investment real estate | No |
Assets impairment | -35,575,418.55 | -10.87% | Mainly the provision for impairment of contract assets | No |
Non-operating revenue | 1,403,387.89 | 0.43% | No | |
Non-business expenses | 4,167,958.09 | 1.27% | Mainly due to donations | No |
Credit impairment loss | -34,635,724.91 | -10.58% | Mainly bad debt provision corresponding to accounts receivable | No |
V. Assets and Liabilities
1. Major changes in assets composition
In RMB
End of 2022 | Beginning of 2022 | Change (% ) | Notes | |||
Amount | Proportion in total assets | Amount | Proportion in total assets | |||
Monetary capital | 1,238,754,216.50 | 9.72% | 1,287,563,759.32 | 10.50% | -0.78% | |
Account receivable | 832,292,348.17 | 6.53% | 556,453,824.20 | 4.54% | 1.99% | |
Contract assets | 2,158,860,658.43 | 16.94% | 1,782,947,673.13 | 14.54% | 2.40% | |
Inventory | 710,532,397.32 | 5.57% | 733,280,924.98 | 5.98% | -0.41% | |
Investment real estate | 5,760,517,577.11 | 45.20% | 5,765,352,393.13 | 47.02% | -1.82% | |
Long-term share equity investment | 54,969,042.14 | 0.43% | 55,218,946.14 | 0.45% | -0.02% | |
Fixed assets | 646,812,853.36 | 5.07% | 663,414,297.61 | 5.41% | -0.34% | |
Construction in process | 0.00% | 11,642,444.21 | 0.09% | -0.09% | ||
Use right assets | 19,449,693.40 | 0.15% | 31,440,856.54 | 0.26% | -0.11% | |
Short-term loans | 1,318,238,522.78 | 10.34% | 1,287,474,398.65 | 10.50% | -0.16% | |
Contract liabilities | 207,993,671.55 | 1.63% | 180,186,877.15 | 1.47% | 0.16% | |
Long-term loans | 1,263,500,000.00 | 9.91% | 1,333,500,000.00 | 10.88% | -0.97% | |
Lease liabilities | 6,907,456.55 | 0.05% | 19,152,093.31 | 0.16% | -0.11% | |
Non-current liabilities due in 1 year | 83,778,647.06 | 0.66% | 78,418,557.76 | 0.64% | 0.02% |
The proportion of overseas assets is relatively high
□ Applicable ? Inapplicable
2. Assets and liabilities measured at fair value
? Applicable □ Inapplicable
In RMB
Item | Opening amount | Gain/loss caused by changes in fair value | Accumulative changes in fair value accounting into the income account | Impairment provided in the period | Amount purchased in the period | Amount sold in the period | Other change | Closing amount |
Financial assets | ||||||||
1. Transactional financial assets (excluding derivative financial assets) | 25,135,241.89 |
2. Derivative financial assets | 1,069,587.62 | 789,205.34 | ||||||
3. Investment in other equity tools | 14,180,652.65 | -2,211,678.79 | -20,372,879.33 | 11,968,973.86 | ||||
4. Receivable financing | 4,263,500.00 | 1,338,202.01 | ||||||
5. Other non-current financial assets | 7,525,408.24 | -17,973.56 | 7,507,434.68 | |||||
Subtotal | 52,174,390.40 | -2,229,652.35 | -20,372,879.33 | 0.00 | 0.00 | 0.00 | 0.00 | 21,603,815.89 |
Investment real estate | 5,755,216,580.10 | -10,095,973.89 | 63,887,326.00 | 8,622,022.15 | 14,332,588.06 | 5,750,831,172.12 | ||
Total | 5,807,390,970.50 | -12,325,626.24 | 43,514,446.67 | 8,622,022.15 | 14,332,588.06 | 5,772,434,988.01 | ||
Financial liabilities | 11,871.20 | 293,400.00 |
Other change:
The increase in other changes was mainly caused by the transfer of fixed assets into investment real estate due to the change ofpurpose.Major changes in the assets measurement property of the Company in the report period
□ Yes ? No
3. Right restriction of assets at the end of the period
Item | Book value on December 31, 2022 (RMB) | Reason |
Monetary capital | 455,076,287.44 | Various deposits |
Notes receivable | 24,546,342.15 | Bills endorsed or discounted but not yet due |
Account receivable | 42,800,680.80 | Loan by pledge |
Fixed assets | 44,751,777.53 | Loan by pledge |
Investment real estate | 3,293,733,474.51 | Loan by pledge |
Other non-current assets | 316,929,580.18 | Loan by pledge |
Equity pledge | 200,000,000.00 | 100% stake in Fangda Property Development held by the Company |
Total | 4,377,838,142.61 |
VI. Investment
1. General situation
? Applicable □ Inapplicable
Investment (yuan) in the report period | Investment (yuan) in the previous period | Change |
500,000.00 | 125,388,100.00 | -99.60% |
2. Major equity investment in the report period
□ Applicable ? Inapplicable
3. Major non-equity investment in the report period
? Applicable □ Inapplicable
In RMB
Project name | Method of investment | Whether it is fixed assets investment | Industries involved in investment projects | Investment in the report period | Actual investment by the end of the report period | Capital source | Progress | Estimate return | Accumulated income realized by the end of the reporting period | Reasons for failing to reach the planned progress and expected income | Disclosure date (if any) | Disclosure source (if any) |
Fangda (Ganzhou) Low Carbon Intelligent Manufacturing Headquarters Base | Self-built | Yes | Mainly produce PVDF aluminum veneer, nano aluminum veneer and other new materials, smart curtain wall system, photovoltaic | 500,000.00 | 500,000.00 | Self-owned fund | 0.00% | -- | -- | -- | December 17, 2022 | Announcement on Investment and Construction of Fangda (Ganzhou) Low Carbon Intelligent Manufacturing Headquarters |
building integration system, aluminum alloy components, and precision steel components. | Base released on http://www.cninfo.com.cn/ | |||||||||||
Total | -- | -- | -- | 500,000.00 | 500,000.00 | -- | 0.00% | -- | -- | -- | -- | -- |
4. Financial assets investment
(1) Securities investment
□ Applicable ? Inapplicable
The Company made no investment in securities in the report period
2. Derivative investment
? Applicable □ Inapplicable
1) Derivative investments for hedging purposes during the reporting period
? Applicable □ Inapplicable
In RMB10,000
Type | Initial investment amount | Gain/loss caused by changes in fair value | Accumulative changes in fair value accounting into the income account | Amount in this period | Amount sold in this period | Closing amount | Proportion of closing investment amount in the closing net assets in the report period |
Shanghai aluminum | 500.55 | -60.37 | -29.34 | 4,658.8 | 4,710.09 | 449.25 | 0.08% |
Forward foreign exchange | 1,454.22 | 4.18 | 78.92 | 8,297.73 | 6,664 | 3,087.95 | 0.54% |
Total | 1,954.77 | -56.19 | 49.58 | 12,956.53 | 11,374.09 | 3,537.2 | 0.62% |
Accounting policies and specific accounting | The aluminum futures and forward foreign exchange businesses of the Company meet the applicable conditions of hedge accounting specified in the accounting standards and are applicable to hedge accounting, which are classified as cash flow hedging. The corresponding accounting policies and accounting principles have not changed from the previous reporting period. |
principles of hedging business during the reporting period, as well as whether there are significant changes compared with the previous reporting period | |
Description of actual profit and loss during the reporting period | The actual income of the aluminum futures hedging instrument and the spot value change of the hedged aluminum ingot in the reporting period is RMB111,800; The gains and losses arising from forward foreign exchange hedging instruments offset the value changes of the hedged items due to exchange rate fluctuations. |
Description of hedging effect | The profit and loss generated by the company's hedging instrument can offset the value change of the hedged item, and the hedging effect of the hedging business is good. |
Capital source | Self-owned fund |
Risk analysis and control measures for the derivative holding in the report period (including without limitation market, liquidity, credit, operation and legal risks) | The aluminum futures hedging and foreign exchange derivatives trading businesses carried out by the Company are derivative investment businesses. The derivative investment business carried out by the Company follows the basic principle of locking the price and exchange rate of raw materials, does not carry out speculative trading operations, and carries out strict risk control when signing hedging contracts and closing positions. The Company has established and implemented the "Derivatives Investment Business Management Measures" and "Commodity Futures Hedging Business Internal Control and Risk Management System". It has made clear regulations on the approval authority, business management, risk management, information disclosure and file management of derivatives trading business, which can effectively control the risk of the Company's derivatives holding positions. |
Changes in the market price or fair value of the derivative in the report period, the analysis of the derivative's fair value should disclose the method used | Fair value of derivatives are measured at open prices in the open market |
and related assumptions and parameters. | |
Lawsuit (if any) | No |
Disclosure date of derivative investment approval by the Board of Directors (if any) | October 28, 2022 |
Opinions of independent directors on the Company's derivative investment and risk controlling | The relevant approval procedures for the Company's foreign exchange derivatives trading business comply with relevant national laws, regulations and the relevant provisions of the Articles of Association. The Company has formulated the Management Measures for Derivatives Investment Business, which is conducive to strengthening the risk management and risk control of the Company's foreign exchange derivatives transactions. The Company's foreign exchange derivatives trading business follows the principles of legality, prudence, safety and effectiveness, and the Company does not carry out foreign exchange transactions solely for profit. All foreign exchange derivatives trading businesses are based on normal production and operation, rely on specific business operations, and aim at avoiding and preventing exchange rate risks, which meet the needs of the Company's business development. There is no speculative operation or situation that damages the interests of the company and all shareholders, especially minority shareholders. The independent directors agreed that the Company should carry out derivative hedging business. |
2) Derivative investment for the purpose of speculation during the reporting period
□ Applicable ? Inapplicable
During the reporting period, there was no derivative investment for the purpose of speculation.
5. Use of raised capital
□ Applicable ? Inapplicable
The Company used no raised capital in the report period.
VII. Major assets and equity sales
1. Major assets sales
□ Applicable ? Inapplicable
The Company sold no assets in the report period.
2. Major equity sales
□ Applicable ? Inapplicable
VIII. Analysis of major joint stock companies? Applicable □ InapplicableMajor subsidiaries and joint stock companies affecting more than 10% of the Company's net profit
In RMB
Company | Type | Main business | Registered capital | Total assets | Net assets | Turnover | Operation profit | Net profit |
Fangda Property | Subsidiaries | Real estate sales | 200,000,000.00 | 5,802,358,325.63 | 2,577,013,361.28 | 257,831,878.77 | 107,427,228.44 | 93,315,937.30 |
Fangda Jianke | Subsidiaries | Curtain wall system and materials | 600,000,000.00 | 4,611,085,141.91 | 1,635,184,819.74 | 2,612,587,088.14 | 167,926,970.12 | 154,803,306.43 |
Fangda Zhiyuan | Subsidiaries | Subway screen door and service | 105,000,000.00 | 906,681,174.38 | 275,955,255.16 | 559,019,008.69 | 17,591,668.29 | 16,849,263.46 |
Kechuangyuan | Subsidiaries | Subway screen door and service | 5,000,000.00 | 81,656,847.32 | 78,439,152.91 | 38,166,374.44 | 35,640,593.00 | 30,728,147.39 |
Acquisition and disposal of subsidiaries in the report period? Applicable □ Inapplicable
Company | Acquisition and disposal of subsidiaries in the report period | Impacts on overall production, operation and performance |
Jiangxi Fangda Intelligent Manufacturing Technology Co., Ltd. | Newly set | None |
Major joint-stock companiesNoIX. Structural entities controlled by the Company
□ Applicable ? Inapplicable
X. Future Prospect
(1) Competition map and development trned
1. Smart curtain wall and material system industry
In the context of carbon peak and carbon neutralization, China is accelerating the formation of an industrial structure, modeof production, lifestyle and spatial pattern that saves resources and protects the environment, and unswervingly follows the high-quality development path of ecological priority, green and low-carbon. The Central Economic Work Conference in December2022 put "efforts to expand domestic demand" at the top of the economic work in 2023. The adjustment of domestic epidemicprevention and control measures, the release of major project plans in 2023 and the establishment of investment growth targets inall provinces across the country are promoting a strong recovery of China's economy. At the same time, with the rapid growth ofChina's economy, China takes promoting new infrastructure as an important part of expanding investment space and constructing a
new development pattern. New urbanization, the coordinated development of Beijing Tianjin Hebei, the development of theYangtze River Economic Belt, the construction of the Guangdong Hong Kong Macao Greater Bay Area, and the construction ofthe "the Belt and Road" will all become important driving forces and valuable opportunities for the future development of thesmart curtain wall system and material industry.
2. Rail transport screen door business
As an advanced mode of transportation, rail transit has many advantages such as fast, efficient, low carbon and environmentalprotection, which have increasingly become the consensus of the society and are supported by national industrial policies. Fromthe perspective of the global urban rail transit industry, the construction of urban rail transit in emerging countries and regions is inthe ascendant, while the rail transit systems of major cities in developed countries are constantly being updated and upgraded.From the perspective of domestic urban rail transit industry, in recent years, the urbanization development strategy at the nationallevel has also continuously injected power into the urban rail transit industry. Some large cities have successively built a numberof rail transit projects, which has significantly improved the urban traffic situation and played an important role in giving full playto urban functions, improving the environment and promoting economic and social development. According to the forecast data of2021 China Urban Rail Transit Market Development Report, 101 rail transit lines in 34 cities such as Hangzhou, Shenzhen,Guangzhou, Zhengzhou and Beijing will be newly opened and operated in 2022-2023, with a total mileage of 2175.63 kilometers,1243 stations and a total investment of RMB1,549.64 billion.
3. New energy industry
In 2022, in order to achieve the goal of carbon peak and carbon neutrality, further promote the sustainable, healthy and high-quality development of the photovoltaic industry, and build a modern energy system, the Chinese government has intensivelyissued a series of supporting and normative documents on the construction direction of photovoltaic power generation, capacitydigestion, photovoltaic subsidies, bidding for grid access, project planning, industrial planning and other aspects. During the "14thfive year plan" period, the development of photovoltaic power generation will enter a new stage of large-scale, high proportion,marketization and high-quality development. By accelerating the construction of a new power system with new energy as the mainbody and improving the consumption and storage capacity of photovoltaic power generation, we can not only realize the large-scale development of photovoltaic power generation, but also achieve a high level of consumption and utilization. The Company'sphotovoltaic power generation, as a green and environmentally friendly power generation method, will use its industrialadvantages to carry out photovoltaic business according to market conditions and promote the high-quality development of thenew energy industry in the future.
4. Real estate
Looking forward to 2023, "stability" is the main tone of the real estate industry, and the national property market policy isexpected to continue to be loose, as the strength of urban policy implementation is expected to be further strengthened. With thecontinuous easing of the property market policy, the gradual improvement of the epidemic situation and the gradual recovery ofthe social economy, the regional differentiation will bring new development opportunities to the Greater Bay Area of Guangdong,Hong Kong and Macao. The industrial development is mature, the population attraction is strong, the real estate market demand isstrong, the integration of Shenzhen and Hong Kong is continuing to advance, and the Shenzhen market still has great potential inthe future.
(2) Company development strategy and business plan
In 2023, the Company will continue to work together to promote the high-quality development of the company, focus on themanagement theme of "refinement", and do the following key work comprehensively in combination with the annual businessobjectives:
(1) Adhere to the contract as the center and strengthen the management of accounts receivable.
Strengthen the quality of contract signing, adhere to the contract as the center, take the duration control as the means, controlthe performance risk, project quality and progress, handle the complicated relationship with the project stakeholders, andresolutely curb the increase of accounts receivable. The Company will divide the risk level of accounts receivable according to one
enterprise and one policy. Vitalize the settled assets, reduce the contract assets, and dispose of invalid and inefficient assets; Do agood job of early warning and locking risks for accounts receivable.
(2) Implement the theme of "refined management" to further improve quality and efficiency.The Company will combine its own characteristics, find out the cost loopholes and weaknesses, further improve the productquality, give full play to the effective use of newly invested equipment, and comprehensively improve the efficiency and operatingefficiency of all staff. The Company will vigorously implement the theme of "refined management", systematically andcomprehensively reduce all kinds of costs, and improve enterprise efficiency and market competitiveness.
(3) Promote innovation and technological progress to maintain the sustainable development of the company.Sustainable development is the top priority of the company's survival. It must be achieved through the development of newproducts, technological progress and product process innovation, and the promotion of industrial progress. New products shouldvigorously expand the market and harvest high-quality orders. The Company's high-end curtain wall, rail transit screen doorsystem and software, PVDF aluminum veneer, photovoltaic and other industries still have good prospects, but still need toestablish a sense of crisis, strengthen responsibility, continuously improve management level, promote technological progress, andstrengthen the Company's viability. According to the actual situation of each industry, the Company will improve itscompetitiveness through new products, new technologies and digital management to ensure its sustainable development.
(4) Introduce excellent talents and optimize the talent structure of enterprises
The Company will take multiple measures to cultivate reserve talents. We should make full use of postdoctoral workstations,technology centers and other platforms to introduce a group of talents with high quality, strong ability and brave responsibility tojoin the company. The Company will ensure the long-term development planning of human resources.
(3) Capital demand and source for projects in progress
To realize the business target in 2023, the Company will develop suitable financial and capital plans, accelerate the collectionof accounts receivable, sales payment from sales of Fangda Town, expand financing channels, and use share issuance, bank loansand other financing products to meet the demand for capital.
(4) Risks
1. Risks of macro environment and policy changes
The Company's main business segments are closely related to macroeconomic and industrial policies and are greatly affectedby the overall macro environment. If there are adverse changes in the international and domestic macroeconomic environment,slow economic development and reduced investment in fixed assets in the future, which will affect the demand of public buildingcurtain wall industry and rail transit equipment industry, or face industry depression or excessive competition, which will have anadverse impact on the Company's future profitability, even project delay or suspension, deferred payment of projects underconstruction, etc, thus affecting the Company's operating performance.
In order to better cope with the opportunities and challenges brought by changes in the economic environment and policies,the Company will pay close attention to the changes in the macroeconomic and policy situation at home and abroad, timely adjustthe Company's business strategy, further enhance the product competitiveness and operation and management ability, improve themarket share, and deal with the risks brought by changes in the macro environment and policies.
2. Market competition risks
In the rail transit PSD market, the technology of other domestic manufacturers is becoming more and more mature, and thecompany may face the risk of intensified market competition. If the Company cannot maintain a leading position in the market, itwill have a certain adverse impact on the development and benefits of the Company's rail transit PSD business. In this regard, theCompany will continue to adopt a stable business policy, improve the competitive advantage of products through technologicalinnovation and fine management, accelerate the return of funds, and improve the operation efficiency and market competitivenessof the Company.
In this regard, the Company will continue to adopt a stable business policy, improve the competitive advantage of productsthrough technological innovation and fine management, accelerate the return of funds, and improve the operation efficiency andmarket competitiveness of the Company. While consolidating the domestic market, the Company will step up the efforts inexploring overseas markets, thus elevating our competitiveness in global markets and improving our resistance to risks.
3. Production and operation risks
The macro-economy and market demand have added to the fluctuation in prices of main raw materials and labor, affecting theCompany's profitability and creating additional production and operation risks for the Company.
The Company will hedge and transfer the price fluctuation risk of some raw materials by using futures product hedging,negotiating with partners to supplement the contract amount, reasonably arranging material procurement plan and other measures;The Company implements a strict supplier management mechanism, actively improves the scientific and technological level ofproduction management, increases technology research and development, is committed to process improvement, landing smartfactories, improves the automation and intelligence of production equipment, and reduces the loss of raw materials. The Companywill continue to promote intelligent and digital construction system, widely apply new technologies and processes, strengthen staffskill training, and improve quality and efficiency on the basis of ensuring safety.
4. Management risks
In recent years, with the expansion of the Company's business scale and the increase of the number of subsidiaries, the dailymanagement of the company is becoming more and more difficult, which may face the management risk of industrial scaleexpansion. In addition, in recent years, the regulatory requirements for listed companies have been continuously improved anddeepened. The Company needs to further strengthen management, continue to promote management reform, constantly optimizeprocess and organizational structure, improve various rules and regulations, and vigorously introduce high-quality, highly skilledand multidisciplinary technology and management talents, gradually optimize the allocation of human resources, optimize theechelon structure, and effectively reduce the management risks brought by business development.
XI. Reception of investigations, communications, or interviews in the reporting period
? Applicable □ Inapplicable
Time/date | Place | Way | Visitor | Visitor | Main content involved and materials provided | Disclosure of information |
April 8, 2022 | Network platform | Others | Others | Investors participating in the Company's 2021 Performance Presentation | Business and future development | Investor Relationship Record Form on www.cninfo.com.cn |
October 31, 2022 | Online | Others | Institution | CCB Fund: Li Ruolan, Zhou Zhishuo | Business and future development | Investor Relationship Record Form on www.cninfo.com.cn |
November 9, 2022 | http://rs.p5w.net/ | Others | Others | Investors participating in the Company's collective reception day | Business and future development | Investor Relationship Record Form on www.cninfo.com.cn |
December 23, 2022 | Online | Others | Institution | Changjiang Securities: Zhang Zhijie | Business and future development | Investor Relationship Record Form on www.cninfo.com.cn |
Chapter IV Corporation GovernanceI. OverviewDuring the report period, the Company strictly complied with the Company Law, Securities Law, Governance Standards for ListedCompanies, Shenzhen Stock Exchange Share Listing Rules, Operation Regulations for Listed Companies in the Main Board ofShenzhen Stock Exchange, continued to improve the legal person governance structure and has formulated a series of internalmanagement systems covering various aspects. The Company has set up a comprehensive and effective internal control system inimportant decision making, related transaction decision making, financial management, HR management, administration, purchase,production and sales management, confidentiality and information disclosure.Any significant difference between the actual situation of corporate governance and the laws, administrative regulations and theprovisions on the governance of listed companies issued by the CSRC
□ Yes ? No
There is no significant difference between the actual situation of corporate governance and the laws, administrative regulations andthe provisions on the governance of listed companies issued by the CSRC.
II. The independence of the Company relative to the controlling shareholders and actualcontrollers in ensuring the company's assets, personnel, finance, institutions, business, etc
(1) In the aspect of business: the Company has its own purchasing, production, sales, and customer service system whichperforming independently. There is not any material related transactions occurred with the controlling shareholders.
(2) In personnel, the labor management, personnel and salary management are operated independently from the controllingshareholder. The senior managements take salaries from the Company and none of them takes senior management position in thecontrolling party.
(3) In assets, the Company owns its production, supplementary production system and accessory equipments independently,and possesses its own industrial properties, non-patent technologies, and trademark.
(4) In organization, the production and business operation, executive management, and department setting are completelyindependent from the controlling shareholder. No situation of combined office exists. The Company adjusts its organizingstructure only for its own practical requirement of development and management.
(5) In accounting, the company has its own independent accounting and auditing division, established independent andcompleted accounting system and management rules, has its own bank account, and exercise its liability of taxation independently.III. Competition
□ Applicable ? Inapplicable
IV. Annual and extraordinary shareholder meetings held during the report period
1. Annual shareholder meeting during the report period
Meeting | Type | Participation of investors | Date | Date of disclosure | Meeting resolution |
2021 Annual Shareholder Meeting | Annual shareholders' meeting | 24.47% | April 19, 2022 | April 20, 2022 | 2. Supervisory Committee' Work Report 2021; 3. Annual Report 2021 and the Summary; 4. Financial Settlement Report 2021; 5. 2021 Profit Distribution Plan; 6. Proposal on Applying for Credit Guarantee from Banks and Other Financial Institutions (special resolution); 7. Proposal on engaging of the CPA for Year 2022; |
1st Provisional Shareholders' Meeting 2022 | Extraordinary shareholders' meeting | 28.44% | September 14, 2022 | September 15, 2022 | 2. Proposal on the listing of the subsidiary Fangda Zhiyuan Technology Co., Ltd. on the growth enterprise market of Shenzhen Stock Exchange in compliance with relevant laws and regulations; 3. Proposal on the plan of China Fangda Group Co., Ltd. to spin off its subsidiary Fangda Zhiyuan Technology Co., Ltd. to be listed on the GEM; 4. Proposal on the listing of Fangda Zhiyuan Technology Co., Ltd., a subsidiary of China Fangda Group Co., Ltd. on the growth enterprise market in compliance with the Rules for the Spin Off of Listed Companies (Trial Implementation); 5. Proposal on spin-off of the subsidiary Fangda Zhiyuan Technology Co., Ltd. to the Growth Enterprise Market to safeguard the legitimate rights and interests of shareholders and creditors; 6. Proposal on maintaining the independence and sustainable operation ability of the Company; 7. Proposal on Fangda Zhiyuan Technology Co., Ltd. having the corresponding standardized operation capability; 8. Proposal on the completeness and compliance of the legal procedures for the spin-off and the validity of the legal documents submitted; 9. Proposal on purpose, commercial rationality, necessity and feasibility analysis of the spin-off; 10. Resolution in relation to proposing to the shareholders' general meeting to authorize the board of directors and authorized persons of the board of directors to deal with matters relating to the spin-off of the Company. |
2. Shareholders of preference shares of which voting right resume convening an extraordinaryshareholders' meeting
□ Applicable ? Inapplicable
V. Particulars about the Directors, Supervisors, and Senior Management
1. Profiles
Name | Position | Job status | Gender | Age | Starting date of the term | End date of the term | Number of shares held at | Increased shares in this | Decreased shares in this | Other increase and decrea | Number of shares held at | Reasons |
beginning of the period | period (share) | period (share) | se (share) | end of the period | ||||||||
Xiong Jianming | Chairman, president | In office | M | 65 | November 20, 1995 | May 8, 2023 | 3,060,657 | 2,049,600 | 0 | 5,110,257 | Be optimistic about the Company's development prospects | |
Xiong Jianwei | Director | In office | M | 54 | April 16, 1999 | May 8, 2023 | ||||||
Zhou Zhigang | Director | In office | M | 60 | April 9, 2007 | May 8, 2023 | ||||||
Zhou Zhigang | Vice president | In office | M | 60 | April 11, 2017 | May 8, 2023 | ||||||
Lin Kebin | Director | In office | M | 45 | April 11, 2017 | May 8, 2023 | ||||||
Lin Kebin | Vice president | In office | M | 45 | June 6, 2008 | May 8, 2023 | ||||||
Guo Jinlong | Independent director | In office | M | 61 | April 11, 2017 | May 8, 2023 | ||||||
Huang Yaying | Independent director | In office | M | 60 | May 8, 2020 | May 8, 2023 | ||||||
Cao Zhongxiong | Independent director | In office | M | 44 | May 8, 2020 | May 8, 2023 | ||||||
Dong Gelin | Supervisory Committee meeting convener | In office | M | 44 | December 28, 2018 | May 8, 2023 | ||||||
Cao Naisi | Supervisor | In office | F | 44 | April 11, 2017 | May 8, 2023 | ||||||
Fan Xiaodong | Supervisor | In office | M | 36 | May 8, 2020 | May 8, 2023 | 8,800 | 8,800 | ||||
Wei | Vice | In | M | 54 | July | May 8, |
Yuexing | president | office | 29, 2011 | 2023 | ||||||||
Xiao Yangjian | Secretary of the Board | In office | M | 38 | June 23, 2020 | May 8, 2023 | ||||||
Total | -- | -- | -- | -- | -- | -- | 3,069,457 | 2,049,600 | 0 | 5,119,057 | -- |
During the reporting period, whether there was any resignation of directors and supervisors and dismissal of senior managersduring their term of office
□ Yes ? No
Changes in the Directors, Supervisors and Senior Executives
□ Applicable ? Inapplicable
2. Office Description
Professional background, work experience and main duties in the Company of existing directors, supervisors and seniormanagement
1. Mr. Xiong Jianming: Ph.D. in business administration, senior engineer. He is currently the chairman and President of thecompany and a deputy to the 13th and 14th National People's Congress. He was once employed by Jiangxi Provincial MachineryDesign Academe, Administration Bureau of Shekou District of Shenzhen government, etc, deputy to the 10th People's Congress ofGuangdong Province, deputy to the 2nd, 3rd and 6th People's Congress of Shenzhen City.
2. Mr. Xiong Jianwei: Master of business administration. Now he is the director of the Company, chairman of Fangda Jiankecompany, and member of the 14th Nanchang CPPCC Standing Committee.
3. Mr. Zhou Zhigang: Bachelor degree. He is now the director and vice president of the Company. He used to be the Secretary ofthe board of directors.
4. Mr. Lin kebing: Bachelor degree. He is now the director and vice president of the Company. He was once the financial directorof the Company.
5. Guo Jinlong: master's degree, CPA. He was a member of the fifth session of the CPPCC of Shenzhen City. He is currently thedeputy to the sixth session of the People's Congress of Shenzhen, vice chairman of Guangdong Certified Public AccountantsAssociation (limited liability partnership), partner of ShineWing Certified Public Account, and an independent director of theCompany, Shenzhen Sanlipu Photoelectric Technology Co., Ltd., Inner Mongolia Furui Medical Technology Co., Ltd., andShenzhen Water Planning and Design Institute Co., Ltd. He was a former member of the 5th CPPCC Shenzhen.
6. Mr. Huang Yaying: Master of Laws. He is currently an independent director of the Company, Shenzhen BAOYINGConstruction Holding Group Co., Ltd., Shenzhen Lihe Kechuang Co., Ltd., Shennan Circuit Co., Ltd. and Huafu Fashion Co., Ltdand a part-time lawyer of Guangdong Beiyuan Law Firm. He was once a professor of Northwest University of Political Scienceand Law, and dean of Shenzhen University Law School.
7. Mr. Cao Zhongxiong: doctor, now is the executive director of New Economy Research Institute of comprehensive developmentand Research Institute (Shenzhen, China). (Shenzhen, China), engaged in research and consulting work on new economy andcorporate strategy. He is an independent director of the Company. He used to be a technician of China Chemical Group BluestarDetergent Co., Ltd. and the executive director of the New Economy Research Institute of the Comprehensive DevelopmentResearch Institute (Shenzhen, China).
8. Mr. Dong Gelin: Bachelor degree, senior engineer. He is currently the convener of the board of supervisors and the assistant tothe president of the Company. He is a member of the 8th National People's Congress of Nanshan District, Shenzhen. He was oncea designer of Shenzhen Fangda Jianke, a wholly-owned subsidiary of the Company, chief engineer of the designing institution,
assistant to the general manager, and general manager of Beijing branch of Fangda Jianke. He is now the vice general manager ofFangda Jianke.
9. Ms. Cao Naisi: Bachelor's degree, intermediate economist, currently Supervisor of the Company and Deputy General Managerof Fangda Jianke. She once served as the securities affairs representative of the Company, the director of the audit and supervisiondepartment, the deputy director of the human resources department, the general manager of Fangda Jianke Beijing Branch, thegeneral manager of Fangda Jianke South China Branch and so on.
10. Mr. Fan Xiaodong: Bachelor degree, major in law. He joined the legal department of the Company in 2011. He is now thesupervisor and vice minister of the legal department of the Company.
11. Mr. Wei Yuexing holds a Bachelor degree and is a senior engineer. He is the vice president of the and general manager ofFangda Jianke.
12. Mr. Xiao Yangjian: Bachelor degree. Now he is the Secretary of the board of directors of the Company. He once served asdeputy general manager and Secretary of the board of directors of Shenzhen Xiongtao Power Technology Co., Ltd. and deputygeneral manager and Secretary of the board of directors of Shenzhen Guangfeng Technology Co., Ltd.Offices held at shareholders entitie? Applicable □ Inapplicable
Name | Shareholder entity | Office | Starting date of the term | End date of the term | Whether any remuneration is paid at the shareholder entity |
Xiong Jianming | Shengjiu Investment Ltd. | Director | October 6, 2011 | No | |
Wei Yuexing | Gong Qing Cheng Shi Li He Investment Management Partnership Enterprise (limited partner) | Executive partner | December 20, 2016 | No | |
Office description | No |
Offices held at other entities? Applicable □ Inapplicable
Name | Entity name | Position held in another entity | Starting date of the term | End date of the term | Whether any remuneration is paid at the shareholder entity |
Guo Jinlong | ShineWing Certified Public Accountants (limited liability partnership) | Partner | October 1, 2005 | Yes | |
Guo Jinlong | Shenzhen Sanlipu Photoelectric Technology Co., Ltd. | Independent director | July 10, 2020 | Yes | |
Guo Jinlong | Inner Mongolia Furui Medical Technology Co., Ltd | Independent director | May 20, 2020 | Yes | |
Guo Jinlong | Shenzhen Water Planning and Design Institute Co., Ltd | Independent director | June 24, 2022 | Yes | |
Guo Jinlong | Zhuhai Lizhu Reagent Co., Ltd. | Independent director | January 1, 2021 | Yes | |
Guo Jinlong | Shenzhen Hangsheng Electronics Co., Ltd. | Director | July 22, 2015 | Yes | |
Guo Jinlong | Shenzhen Wenshuo Jiayin Musical Communication Co., Ltd. | Supervisor | November 1, 2018 | No | |
Huang | Shenzhen BAOYING Construction | Independent | June 2, 2020 | Yes |
Yaying | Holding Group Co., Ltd. | director | |||
Huang Yaying | Shenzhen Lihe Technology Innovation Co., Ltd. | Independent director | February 10, 2020 | Yes | |
Huang Yaying | Shennan Circuits Co., Ltd. | Independent director | April 6, 2021 | Yes | |
Huang Yaying | Huafu Fashion Co., Ltd. | Independent director | December 16, 2021 | Yes | |
Huang Yaying | Part-time lawyer of Guangdong Beiyuan Law Firm | Part-time lawyer | April 1, 2020 | Yes | |
Cao Zhongxiong | General Development Research Institute (Shenzhen, China) | Director of Institute of Digital Strategy and Economics | January 1, 2022 | Yes | |
Office description | The above-mentioned three are independent directors of the Company. |
Penalties given by existing securities regulators on directors, supervisors and senior management and those who have resigned inthe report period
□ Applicable ? Inapplicable
III. Remunerations of the Directors, Supervisors and Senior Executives
Decision making procedures, basis and actual payment of remunerations of the Directors, Supervisors and Senior Executives
1. Remuneration schemes for directors and supervisors are proposed by the Remuneration and Assessment Committee of theBoard, and implemented upon approval of the Board and the Shareholders' Meetings; the remuneration schemes for executives areapproved and implemented by the Board.Remuneration for directors and supervisors are decided by the shareholders' meeting. Remunerations for executives are composedof wages and performance bonus as decided by the Board.Payment on monthly basisRemunerations of the Directors, Supervisors and Senior Executives of the Company During the reporting period
In RMB10,000
Name | Position | Gender | Age | Job status | Total remuneration | Remuneration from related parties |
Xiong Jianming | Chairman, president | M | 65 | In office | 226.72 | No |
Xiong Jianwei | Director | M | 54 | In office | 110.92 | No |
Zhou Zhigang | Director, vice president | M | 60 | In office | 95.94 | No |
Lin Kebin | Director, vice president | M | 45 | In office | 120.2 | No |
Guo Jinlong | Independent director | M | 61 | In office | 8 | No |
Huang Yaying | Independent director | M | 60 | In office | 8 | No |
Cao Zhongxiong | Independent director | M | 44 | In office | 8 | No |
Dong Gelin | Supervisory Committee meeting convener | M | 44 | In office | 80.62 | No |
Cao Naisi | Supervisor | F | 44 | In office | 59.06 | No |
Fan Xiaodong | Supervisor | M | 36 | In office | 49.6 | No |
Wei Yuexing | Vice president | M | 54 | In office | 108.22 | No |
Xiao Yangjian | Secretary of the Board | M | 38 | In office | 74.25 | No |
Total | -- | -- | -- | -- | 949.53 | -- |
VI. Performance of directors during the report period
1. Board of Directors in the reporting period
Meeting | Date | Date of disclosure | Meeting resolution |
12th meeting of the 9th Board of Directors | January 21, 2022 | January 22, 2022 | Reviewed and approved the proposal on providing external financial assistance. |
13th meeting of the 9th Board of Directors | March 28, 2022 | March 30, 2022 | Reviewed and adopted: 1. 2021 annual president's work report; 2. Work report of the Board of Directors in 2021; 3. The full text and summary of the 2021 annual report; 4. 2021 annual financial statement; 5. Proposal on 2021 profit distribution plan; 6. Self-evaluation report on internal control in 2021; 7. Proposal on applying for credit extension and providing guarantee to banks and other financial institutions; 8. Proposal on the employment of audit institutions in 2022; 9. Proposal on 2021 Social Responsibility Report; 10. Proposal on convening the 2021 annual general meeting of shareholders. |
14th meeting of the 9th Board of Directors | April 26, 2022 | The proposal on the Company's First Quarter Report 2022 was reviewed and passed. | |
15th meeting of the 9th Board of Directors | August 26, 2022 | August 30, 2022 | Reviewed and approved: 1. Proposal on the Full Text and Summary of the 2022 Semi-annual Report; 2. The Proposal on the Spin-off of the Subsidiary Fangda Zhiyuan Technology Co., Ltd.'s IPO and Listing on the GEM; 3. The Proposal on Spin-off of its subsidiary Fangda Zhiyuan Technology Co., Ltd. to the Shenzhen Stock Exchange for listing on the GEM in compliance with relevant laws and regulations; 4. Proposal on the Plan of Fangda Group Co., Ltd. to Spin off its subsidiary Fangda Zhiyuan Technology Co., Ltd. to be listed on the GEM; 5. The Proposal on Spin-off of its subsidiary Fangda Zhiyuan Technology Co., Ltd. to the GEM in compliance with the "Rules for Spin-off of Listed Companies (for Trial Implementation)"; 6. Proposal on Spin-off of Fangda Zhiyuan Technology Co., Ltd., its subsidiary, to be listed on the GEM, which is conducive to safeguarding the legitimate rights and interests of shareholders and creditors; 7. Proposal on the Company's Independence and Sustainability; 8. Proposal on Fangda Zhiyuan Technology Co., Ltd. having corresponding standardized operation capability; 9. Proposal on the completeness and compliance of the legal procedures and |
the validity of the legal documents submitted for the spin-off; 10. Proposal on the Purpose, Commercial Rationality, Necessity and Feasibility Analysis of the Spin-off; 11. Proposal on Submitting the General Meeting of Shareholders to Authorize the Board of Directors and its Authorized Persons to Handle Matters Related to the Company's Spin-off; 12. Proposal on Convening the First Extraordinary General Meeting of Shareholders in 2022. | |||
16th meeting of the 9th Board of Directors | October 26, 2022 | October 28, 2022 | Reviewed and approved: 1. Proposal on the third quarter report of 2022; 2. Proposal on continuing to carry out derivative hedging business; 3. Proposal on continuing to use idle self-owned funds for cash management. |
17th meeting of the 9th Board of Directors | December 16, 2022 | December 17, 2022 | The proposal on the investment and construction of the large (Ganzhou) low-carbon intelligent manufacturing headquarters base was reviewed and passed. |
2. Directors' presenting of board meetings and shareholders' meetings in the report period
Directors' presenting of board meetings and shareholders' meetings in the report period | |||||||
Name of director | Time of board meetings should have attended | Number of board meetings attended | Presented by telecom | Number of board meetings attended by proxy | Number of board meetings not attended | Absent for two consecutive meetings | Number of shareholders' meetings attended |
Xiong Jianming | 6 | 2 | 4 | 0 | 0 | No | 2 |
Xiong Jianwei | 6 | 2 | 4 | 0 | 0 | No | 2 |
Zhou Zhigang | 6 | 1 | 5 | 0 | 0 | No | 2 |
Lin Kebin | 6 | 2 | 4 | 0 | 0 | No | 2 |
Guo Jinlong | 6 | 1 | 5 | 0 | 0 | No | 1 |
Huang Yaying | 6 | 1 | 5 | 0 | 0 | No | 2 |
Cao Zhongxiong | 6 | 1 | 5 | 0 | 0 | No | 2 |
Statement for absence for two consecutive board meetingsNone
3. Objection raised by directors
Any objection raised by directors against the Company's related issues
□ Yes ? No
Directors made no objection on related issued of the Company in the report period.
4. Other statement for performance of directors
Adoption of suggestion proposed by directors
? Yes □ NoStatement for suggestion adopted or not by the CompanyThe directors of the Company shall perform their duties in strict accordance with the provisions of the Company Law, theSecurities Law, the Guidelines for the Governance of Listed Companies, the Stock Listing Rules of Shenzhen Stock Exchange, theArticles of Association and other laws and regulations and the Company's system. During the reporting period, the directors of theCompany attended the meetings of the Board of Directors, and expressed their views and in-depth discussions on variousproposals submitted to the board of directors for consideration, made suggestions for the healthy development of the Company,fully considered the interests and demands of minority shareholders when making decisions, and effectively strengthened thescientificity and feasibility of the decision-making of the board of directors. At the same time, the directors of the Companyactively participate in relevant training, improve their ability to perform their duties, actively pay attention to the company'soperation and management information, financial status and major events, and promote the sustainable, stable and healthydevelopment of the Company's production and operation. The independent directors are diligent and conscientious, carefullydeliberating various proposals of the board of directors of the Company, and expressing independent opinions on the improvementof the Company's system, major operation and management matters, company guarantee, profit distribution and other relatedmatters. The relevant suggestions of the independent directors to the Company have been adopted by the company, which hasplayed a positive role in safeguarding the interests of the Company and minority shareholders.VII. Special committees under the board of directors during the reporting period
Committee name | Membership | Number of meetings held | Date | Meeting content | Important opinions and suggestions put forward | Other performance of duties | Details of objections (if any) |
Development Strategy Committee | Xiong Jianming, Cao Zhongxiong, Lin kebing, Zhou Zhigang | 2 | March 28, 2022 | Heard and considered: 1. Review of the Company's production and operation in 2021; 2. The Company's 2022 annual production and operation work plan. | After full communication and discussion, all proposals were unanimously passed. | ||
Development Strategy Committee | Xiong Jianming, Cao Zhongxiong, Lin kebing, Zhou Zhigang | 2 | August 26, 2022 | Listened to and reviewed the review of the Company's production and operation in the first half of 2022 and the main work in the second half of 2021; | After full communication and discussion, all proposals were unanimously passed. | ||
Audit Committee | Guo Jinlong, Huang Yaying, Lin kebing | 5 | March 21, 2022 | Listened to and reviewed the financial statements of the Company in 2021 | The financial and accounting report of the |
after the preliminary opinions issued by the annual audit accountant | Company for 2021 has been prepared in accordance with the new accounting standards for business enterprises and relevant financial regulations of the Company, which truly reflects the financial status of the Company as of December 31, 2021 and the operating results and cash flow in 2021. It is agreed to determine the final financial report for 2021 on this basis. | ||||||
Audit Committee | Guo Jinlong, Huang Yaying, Lin kebing | 5 | March 28, 2022 | Listened to the 2021 financial work report and internal audit work report, the following items were considered and adopted: 1. The Company's audited financial and accounting statements for 2021; 2. The Company's proposal to hire an auditor in 2022; 3. The Company's self-evaluation report on internal control in 2021. | After full communication and discussion, it was unanimously approved and agreed to submit all proposals to the board of directors of the company for deliberation. | ||
Audit | Guo Jinlong, | 5 | April 26, | The financial | After full |
Committee | Huang Yaying, Lin kebing | 2022 | statements of the Company for the first quarter of 2022 were reviewed and approved. | communication and discussion, the proposal was unanimously adopted and agreed to be submitted to the board of directors of the Company for deliberation. | |||
Audit Committee | Guo Jinlong, Huang Yaying, Lin kebing | 5 | August 26, 2022 | The financial statements of the Company for the half year of 2022 were reviewed and approved. | After full communication and discussion, the proposal was unanimously adopted and agreed to be submitted to the board of directors of the Company for deliberation. | ||
Audit Committee | Guo Jinlong, Huang Yaying, Lin kebing | 5 | October 26, 2022 | Reviewed and approved: 1. The Company's unaudited financial and accounting statements for the third quarter of 2022; 2. Proposal on developing derivative hedging business; | After full communication and discussion, it was unanimously approved and agreed to submit all proposals to the board of directors of the company for deliberation. | ||
Remuneration and Assessment Committee | Huang Yaying, Cao Zhongxiong, Xiong Jianwei | 1 | March 28, 2022 | The proposal on the remuneration of directors and senior managers in 2021 was considered and adopted. | In 2021, the directors and senior managers of the Company have diligently and conscientiou |
VIII. Performance of Supervisory Committee
(1) Risks for the Company discovered by the Supervisory Committee
□ Yes ? No
No disagreement with supervisory issues by the Supervisory Committee during the report period.
(2) The Supervisory Committee' Work Report 2022
In 2022, the Supervisory Committee performed its duties and obligations in supervision and protect all shareholders' and theCompany's interests in accordance with the Company Law, Share Listing Rules, Articles of Association and Rules of the Procedureof the Supervisory Committee. The 2022 supervisory committee's work plan is as follows:
1. Opinions
(1) Legal compliance
In 2022, the Board of Supervisors of the Company supervised the operation of the Company in accordance with the law. In thereport period, the Company has been operated in accordance with law. The convening of meeting of the Board and the decision-making process are compliant with law, regulations and Articles of Association; the internal control system is solid. Directors andsenior management have performed their obligations. No violation against law, regulations, Articles of Association and interests ofthe Company and shareholders was discovered.
(2) Financial condition
In 2022, the Board of Supervisors supervised the financial affairs of the Company. The accounting management has beencompliant with the Accounting Law, Enterprise Accounting Standard. No false, misleading statement or significant omission wasfound in financial statements. The financial reports of the Company reflect the Company's financial position, operation performance,cash flows and major risks truthfully, accurately and completely. The CPA has issued the standard auditor's report in 2022, which isobjective, fair and truthful. It reflects the Company's financial position and operation performance.
(3) Implementation of internal control
According to the board of supervisors, the design and operation of the internal control is effective and meets the Company'smanagement and development requirements. It can ensure the truthfulness, lawfulness, completeness of the financial materials andensure the safety and completeness of the Company's property. In 2022, the company did not violate the securities law, the standards
for the governance of listed companies, the self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 1 -standardized operation of listed companies on the main board and the Company's internal control system. The 2022 Internal ControlSelf-evaluation Report truthfully and objectively reflects the establishment, implementation and improvement of the Company'sinternal control system. There are no significant or important problems in the financial and non-financial reports in the report period.
(4) Fulfillment of social responsibilities
In 2022, the Company has made due contributions to economic development and environmental protection, actively participatedin public welfare and charity, conscientiously fulfilled its due social responsibility, and safeguarded the interests of shareholders,customers and employees.
2. Meetings and resolutions of the supervisory meeting in the report period
Four meetings were held in 2022, all of which are on-site meetings. All proposal were approved and disclosed as required:
No. | Meeting | Date | Convening method | Topic |
1 | 8th meeting of the 9th Supervisory Committee | March 28, 2022 | On-site | 2. Annual Report 2021 and the Summary; 3. Financial Settlement Report 2021; 4. Review the Company's 2021 Profit Distribution Plan; 5. The proposal of engaging the auditor for 2022; 6. The Company's internal control self-evaluation report 2021; |
2 | 9th meeting of the 9th Supervisory Committee | April 26, 2022 | On-site | Proposal on the Company's First Quarter Report 2022 |
3 | 10th meeting of the 9th Supervisory Committee | August 26, 2022 | On-site | 1. Reviewed and approved the Proposal on the Full Text and Summary of the 2022 Semi-annual Report; 2. Reviewed and approved the Proposal on the Spin-off of the Subsidiary Fangda Zhiyuan Technology Co., Ltd.'s IPO and Listing on the GEM; 3. Reviewed and approved the Proposal on Spin-off of its subsidiary Fangda Zhiyuan Technology Co., Ltd. to the Shenzhen Stock Exchange for listing on the GEM in compliance with relevant laws and regulations; 4. Proposal on the Plan of Fangda Group Co., Ltd. to Spin off its subsidiary Fangda Zhiyuan Technology Co., Ltd. to be listed on the GEM; 5. Reviewed the Proposal on Spin-off of its subsidiary Fangda Zhiyuan Technology Co., Ltd. to the GEM in compliance with the "Rules for Spin-off of Listed Companies (for Trial Implementation)"; 6. Reviewed the Proposal on Spin-off of Fangda Zhiyuan Technology Co., Ltd., its subsidiary, to be listed on the GEM, which is conducive to safeguarding the legitimate rights and interests of shareholders and creditors; 7. Reviewed the Proposal on the Company's Independence and Sustainability; 8. Reviewed the Proposal on Fangda Zhiyuan Technology Co., Ltd. having corresponding standardized operation capability; 9. Reviewed the Proposal on the completeness and compliance of the legal procedures and the validity of the legal documents submitted for the spin-off; 10. Reviewed the Company's Proposal on the Purpose, Commercial Rationality, Necessity and Feasibility Analysis of the Spin-off. |
4 | 10th meeting of the 9th Supervisory Committee | October 26, 2022 | On-site | Proposal regarding the Company's 2022 Q3 Report |
(III) The Supervisory Committee's Work Report 2023
In 2023, the Supervisory Committee of the Company will closely focus on the overall business objectives of the Company,actively perform the supervision function of the Supervisory Committee and supervise the standardized operation of the Company inaccordance with the Company Law and other laws and regulations, the articles of association and the rules of procedure of theSupervisory Committee; at the same time, it will continuously strengthen its professional quality, strive to improve its professionalability and performance level; and strengthen the supervision of major projects and related parties of the Company, pay attention tothe Company's risk management and internal control system construction, ensure that the Company implements effective internalcontrol measures, and further promote the Company's standardized operation.
IX. Employees
1. Staff number, professional composition and education
Staff number of the parent at the end of the reporting period | 54 |
Number of on-the-job employees of major subsidiaries at the end of the reporting period (person) | 2,863 |
Total number of active employees at the end of the reporting period (person) | 2,917 |
Number of employees receiving remuneration in the period | 2,917 |
Resigned and retired staff number to whom the parent and major subsidiaries need to pay remuneration | 0 |
Professional composition | |
Categories of professions | Number of people |
Production | 1,378 |
Sales & Marketing | 122 |
Technicians | 1,221 |
Finance & Accounting | 61 |
Administration | 135 |
Total | 2,917 |
Education | |
Categories of education | Number of people |
High school or below | 1,303 |
College diploma | 630 |
Bachelor | 953 |
Master's degree | 29 |
Doctor's degree | 2 |
Total | 2,917 |
2. Remuneration policy
Staff remuneration policy: The Company's staff remuneration comprises post wage, performance wage, allowance and annualbonus. The Company has set up an economic responsibility assessment system according to the annual operation target andresponsibility indicators for all departments. The performance wage is determined by the economic indicators, managementindicators, optimization indicators and internal control. The annual bonus is determined by the Company's annual profit andfulfillment of targets set for various departments. The staff remuneration and welfare will be adjusted according to the Company'sbusiness operation and changes in the local standard of living and price index.
3. Training program
Staff training plan: The Company has paid continuous attention to training and development of the staff and introducesinnovative learning as part of the long-term strategy. We provide training programs through different channels and in differentfields for different employees will help them fulfill their works, including new staff training, on-the-job training, operation andmanagement training programs. These programs have largely elevated capabilities of the staff and underpin the success of theCompany.
4. Labor outsourcing
? Applicable □ Inapplicable
Total number of hours of labor outsourcing | 14,207,001.15 |
Total remuneration paid for labor outsourcing (RMB) | 512,230,008.60 |
X. Profit distribution of the Company and conversion of capital reserve into share capitalEstablishment, implementation or adjustment of profit distribution policies especially the cash dividend policy during the reportperiod? Applicable □ InapplicableDuring the report period, the Company implemented the profit distribution plan for 2021. According to the deliberation andapproval of the 2021 annual general meeting held on April 19, 2022, the Company's 2021 profit distribution plan is as follows: theCompany will distribute cash dividends of RMB0.50 (including tax) per 10 shares to all shareholders based on the total sharecapital of 1,073,874,227 shares after the closing of the stock market on the equity registration date when the profit distributionplan is implemented, with a total of 53,693,711.35 yuan in cash, and will not distribute bonus shares nor transfer capital reserves toshare capital.The Company attaches importance to the reasonable return to investors, implements a continuous and stable profitdistribution policy, the formulation and implementation of the profit distribution policy comply with the relevant provisions of theArticles of Association and the requirements of the resolutions of the General Meeting of Shareholders, the dividend standard andproportion are clear and clear, the relevant decision-making procedures and mechanisms are complete, the independent directorsperform their duties and play their due role, and the company's profit distribution plans are submitted to the General Meeting ofShareholders for consideration, The profit distribution policy is compliant and transparent. Small and medium-sized shareholdershave the opportunity to fully express their opinions and appeals, and their legitimate rights and interests have been fully protected.
Explanation of Cash Dividend Distribution Policies | |
Comply with the Articles of Association or resolution made at the General Shareholders' Meeting | Yes |
Clear and definite distribution standard and proportion | Yes |
Decision-making procedure and mechanism | Yes |
Independent directors fulfill their duties | Yes |
Middle and small shareholders express their opinions and claims. There rights are well protected. | Yes |
Cash dividend distribution policies are adjusted or revised according to law | Inapplicable |
The company made profits during the reporting period and the profit available to shareholders of the parent company was positive,but no cash dividend distribution plan was proposed
□ Applicable ? Inapplicable
Profit Distribution and Reserve Capitalization in the Report Period? Applicable □ Inapplicable
Bonus shares for every ten shares | 0 |
Cash dividend for every ten shares (yuan, tax-included) | 0.5 |
A total number of shares as the distribution basis | 1,073,874,227 |
Cash dividend (including tax) | 53,693,711.35 |
Cash dividend paid in other manners (such as repurchase of | 0.00 |
shares) | |
Total cash dividend (including other manners) | 53,693,711.35 |
Distributable profit (yuan) | 1,225,449,092.72 |
Proportion of cash dividend in the distributable profit (including other manners) | 100% |
Cash dividend | |
The Company is in a fast growth stage. Therefore, the cash dividend will reach 20% of the profit distribution at least. | |
Details of profit distribution or reserve capitalization plan | |
The profit distribution plan for 2022 approved by the board of directors of the Company is: the Company plans to distribute cash dividends of RMB0.50 (tax included) for every 10 shares to all shareholders based on the total share capital of 1,073,874,227 shares on December 31, 2022, with a total cash distribution of RMB53,693,711.35. No dividend share or capitalization share was issued in the year. After the announcement of the Company's profit distribution plan to the time of implementation, if the total share capital changes, in accordance with the principle of “distributing cash dividends of RMB 0.50 (tax included) for every 10 shares”, the total share capital after the market closes on the equity registration date when the profit distribution plan is implemented shall be used. The total amount of cash dividends will be disclosed in the Company's profit distribution implementation announcement. |
XI. Share incentive schemes, staff shareholding program or other incentive plans
□ Applicable ? Inapplicable
There is no share incentive schemes, staff shareholding program or other incentive plans in the report period
XII. Construction and implementation of internal control system during the reportingperiod
1. Construction and implementation of internal control
The Company has established and improved the Company's internal control system in accordance with the provisions of thebasic norms of enterprise internal control and its supporting guidelines and other internal control supervision requirements,combined with the actual situation of the Company, and has been effectively implemented. The audit committee and the internalaudit department jointly form the Company's risk internal control management organization system to supervise and evaluate theCompany's internal control management, The Company's self-evaluation report on internal control in 2022 comprehensively, trulyand accurately reflects the actual situation of the company's internal control. During the reporting period, the Company has nomajor defects and important defects in internal control.
2. Major problems in internal control discovered in the report period
□ Yes ? No
XIII. Management and control of subsidiaries during the reporting period
□ Applicable ? Inapplicable
XIV. Internal control self-evaluation report or internal control audit report
1. Internal control self-evaluation report
Date of disclosure of the internal control | February 28, 2023 |
evaluation report | ||
Disclosure of the internal control evaluation report | www.cninfo.com.cn | |
Percentage of assets in the evaluation scope in the total assets in the consolidated financial statements | 94.39% | |
Percentage of operation income in the evaluation scope in the total operation income in the consolidated financial statements | 96.51% | |
Standard | ||
Type | Financial report | Non-financial report |
Standard | 1. The following problems are considered major problems: 1. Non-effective control environment; 2. corrupt practice by directors, supervisor and senior management, causing substantial loss and impacts for the Company; 3. Substantial mistakes in the financial statements in the period discovered by the CPA, which are not discovered by the internal control; 4. Ineffective supervision of the internal control by the Company's auditing department 2. The following problems are considered significant problems: 1 accounting policies are selected and used without complying to widely accepted accounting standards; 2. No anti-corrupt and important balance system and control measures are taken; 3. Separate or multiple problems in the preparation of financial reports, which are serious enough to affecting the truthfulness and accuracy of the reports; no control system is established and no related compensation system is implemented for accounts of irregular or special transactions 3. Other problems are considered normal problems. | I. The following condition indicates significant problems in the internal control of non-financial reports: 1. Serious violation against national laws, regulations or specifications; 2. Serious business system problems and system ineffectiveness; 3. Major or important problems cannot be corrected; 4. Lack of internal control and poor management; 5. Loss of management personnel or key employees; 6. Safety and environmental accidents that cause major adverse impacts; 7. Other situations that cause major adverse impacts on the Company. II. The following situations indicate that there may be significant problems with the internal control: 1. business system problems and system ineffectiveness; 2. Major or important problems cannot be corrected; 3. Other situations that cause major adverse impacts on the Company III. The following situation indicate likely normal problems in the internal control: 1. Problems in the general business system; 2. Normal problems in the internal control supervision cannot be correctly promptly. |
Standard | 1. Significant problem: 1 mistakes affecting 5% and more of the pre-tax profit and more than RMB5 million in the consolidated statements; 2. Mistakes affecting 5% and more of the consolidated assets and more than RMB5 million 2. Important problem: 1. Mistakes affecting 1%-5% of the pre-tax profit in the consolidated statements; 2. Mistakes affecting 1%-5% the consolidated assets. III. Normal problem: 1. Mistakes affecting less than 1% of the pre-tax profit and total assets of the consolidate statements. | See the recognition standard of the internal control problems for financial statements |
Significant problems in financial | 0 |
statements | |
Significant problems in non-financial statements | 0 |
Important problems in financial statements | 0 |
Important problems in non-financial statements | 0 |
2. Internal control audit report
? Applicable □ Inapplicable
Comments in the internal control audit report | |
We believe that China Fangda Group has maintained effective internal control on financial reports according to Basic Regulations on Enterprise Internal Control and related regulations on December 31, 2022. | |
Disclosure of internal auditor's report | Disclosed |
Date of disclosure of the internal control audit report | February 28, 2023 |
Source of disclosure of the internal control audit report | www.cninfo.com.cn |
Opinion type | Standard opinion auditor's report |
Problems in non-financial statements | No |
Non-standard internal control audit report by the CFA
□ Yes ? No
Consistency between the internal control audit report and self-evaluation report? Yes □ NoXV. Rectification of problems in self inspection of special actions for governance of listedcompaniesNo
V. Environmental and social responsibilityI. Major environmental problem
Whether the Company and its subsidiaries are key polluting companies disclosed by the environmental protection authority
□ Yes ? No
Administrative penalties for environmental problems during the reporting period
Company or subsidiary | Reason | Violations | Punishment result | Impact on the production and operation of listed companies | Rectification measures of the Company |
No | No | No | No | No | No |
Refer to other environmental information disclosed by key pollutant discharge unitsDuring the reporting period, the listed company and its subsidiaries were not key pollutant discharge units announced by theenvironmental protection department, and there were no administrative penalties for environmental problems.Measures and effects taken to reduce carbon emissions during the reporting period? Applicable □ InapplicableThe Company pays attention to global climate change and actively explores the path of environmental friendliness andenterprise development. Since its inception, the Company has been accompanied by a sense of mission of green environmentalprotection. The Company's smart curtain wall, photovoltaic building integration (BIPV) project, rail transit PSD system, solarphotovoltaic power station and other industries have environmental protection genes. Combined with the characteristics of theindustry, the Company integrates the concept of environmental protection into technological innovation, successively developsnational and provincial key environmental protection new products such as ventilated and photovoltaic curtain walls, nano self-cleaning and fireproof honeycomb aluminum composite plates, and takes the lead in developing the subway PSD system withindependent intellectual property rights in China. In 2022, solar photovoltaic power generation in the new energy industry willreach 19.8314 million kilowatt-hours, equivalent to saving about 7139.30 tons of standard coal, reducing nearly 20000 tons ofcarbon dioxide emissions, and reducing about 234.01 tons of sulfur dioxide, which will continue to contribute to the realization ofcarbon peak and carbon neutrality goals. The Company was awarded the first batch of carbon emission measurement pilotenterprises for building decoration in Shenzhen.
The Company has established an environmental management system, and many subordinate companies have passed theISO14001 environmental system certification. In their daily production and operation, they seriously implement the environmentalprotection laws and regulations such as the environmental protection law of the People's Republic of China, the water pollutionprevention and control law of the People's Republic of China, the air pollution prevention and control law of the People's Republicof China, and the solid waste pollution prevention and control law of the People's Republic of China. In 2022, it won the "NationalExcellent Foreign-invested Enterprise - Green Carbon Reduction Promotion Award". The Company and its subsidiaries are notamong the key pollutant discharging units announced by the environmental protection department.The Company advocates energy conservation and emission reduction, safety and environmental protection, and adheres tothe comprehensive implementation of "green environmental protection" measures from the aspects of infrastructure construction,
waste water treatment, lighting and greening of office areas, so as to create a good, green and healthy office environment. TheCompany advocates green office, reduces the standby energy consumption of air conditioners, computers and other electricalequipment, and reasonably sets the air conditioning temperature in the office area to save energy. At the same time, the Companyhas established a combination of electronic, networked and remote office mode, promoted "paperless office" by improving OAsystem and ERP system, and actively used video conference and teleconference to replace on-site meetings, so as to improve workefficiency and reduce various costs of on-site meetings.Reasons for non-disclosure of other environmental informationNoII. Social responsibilities
While creating enterprise value, the company adheres to its original mission, attaches great importance to the sustainabledevelopment of the environment and society, and actively performs its social responsibilities. In 2022, the Company's funds forsocial welfare undertakings totaled RMB3,173,300. The Company has earnestly performed social responsibilities in regulatinggovernance and operation, protecting the rights and interests of shareholders and creditors, safe production, environmentalprotection, energy conservation and emission reduction, protecting the rights and interests of employees, protecting the rights andinterests of suppliers, customers and consumers, public relations and social public welfare undertakings. See cninfo.com for detailshttp://www.cninfo.com.cn for the 2022 social responsibility report of China Fangda Group Co., Ltd.III. Consolidate and expand the achievements of poverty alleviation and rural revitalizationOver the years, while creating enterprise value, the Company has adhered to its original mission, fulfilled the socialresponsibilities of listed companies, actively participated in the action of "ten thousand enterprises prospering ten thousandvillages", successively carried out industrial assistance in Guangdong, Jiangxi, Tibet and other places, helped poor areas to growcash crops such as agrocybe cylindracea and lilies according to local conditions, and built greenhouse photovoltaic power stations,distributed photovoltaic power stations and other rural industrial "hematopoietic" projects. Our efforts have created new drivingforces for rural economic development and helped build a beautiful new era village, which has prosperous industries, ecologicallivability, a civilized rural style, effective governance, and a rich cultural heritage. All walks of life have praised us for the goodsocial results we have achieved.In addition, the Company has actively participated in various public welfare activities, involving public education, combatingSARS, funding rural medical care, disaster relief, environmental protection, prevention and control of the COVID-19 and manyother aspects. It has successively won the "National Advanced Private Enterprise in 'Ten Thousand Enterprises Help TenThousand Villages' Targeted Poverty Alleviation Action", "National Federation of Industry and Commerce Advanced PrivateEnterprise in Fighting COVID-19", "China's Outstanding Enterprise in Performing Social Responsibility" Honors such as"National Excellent Foreign-invested Enterprises - Shenzhen's Top Ten Taxable Enterprises", "Guangdong May Day LaborMedal", etc.In 2022, the company donated 1.6 million yuan to Miaoqian Village, Ji'an County, Jiangxi Province, the old revolutionarybase, to support the village's collective breeding industry project, and play a booster role in promoting the industrial revitalizationand expansion of the village's collective economy, driving the income of poverty-stricken households and farmers, and boostingthe rural revitalization; Donate RMB800,000 to Shenzhen Charity Association. In order to improve the conditions for runningschools in rural areas and provide students with a good educational environment, the company has invested RMB1,167,600 in theexpansion and repair of the Fangda Hope Primary School in the Xinjian District of Nanchang City by the end of 2022.
Chapter VI Significant Events
I. Performance of promises
1. Commitments that have been fulfilled and not fulfilled by actual controller, shareholders, relatedparties, acquirers of the Company
□ Applicable ? Inapplicable
There is no commitment that has not been fulfilled by actual controller, shareholders, related parties, acquirers of the Company
2. Explanation and reason of profit forecasts on assets or projects that remain in the report period
□ Applicable ? Inapplicable
II. Non-operating capital use by the controlling shareholder or related parties in thereporting term
□ Applicable ? Inapplicable
The controlling shareholder and its affiliates occupied no capital for non-operating purpose of the Company during the reportperiod.
III. Incompliant external guarantee
□ Applicable ? Inapplicable
The Company made no incompliant external guarantee in the report period.IV. Description of the board of directors on the latest "non-standard audit report"
□ Applicable ? Inapplicable
V. Statement of the Board of Directors, Supervisory Committee and Independent Directors(if applicable) on the "non-standard auditors' report" issued by the CPA on the currentreport period
□ Applicable ? Inapplicable
VI. Description of changes in accounting policies, accounting estimates or correction ofmajor accounting errors compared with the financial report of the previous year
? Applicable □ Inapplicable
(1) Changes in accounting policies
Implement the provisions of the Accounting Standards for Business Enterprises Interpretation No. 15 on "accountingtreatment for the external sales of products or by-products produced by enterprises before the fixed assets reach the intendedusable state or during the research and development process" and "judgment on loss contracts"On December 30, 2021, the Ministry of Finance issued the Interpretation of Accounting Standards for Business EnterprisesNo. 15 (Cai Kuai [2001] No. 35) (hereinafter referred to as "Interpretation No. 15"), Among them, the contents of "Accounting
treatment for the external sales of products or by-products produced by enterprises before the fixed assets reach the expectedusable state or during the research and development process" (hereinafter referred to as "Accounting treatment provisions for trialoperation sales") and "Judgment on loss contracts" shall be implemented as of January 1, 2022. The implementation of the relevantprovisions of the Interpretation No. 15 has no significant impact on the financial statements of the Company during the reportingperiod.Implement the interpretation of accounting standards for Business Enterprises No. 16On November 30, 2022, the Ministry of Finance issued the Interpretation of Accounting Standards for Business EnterprisesNo. 16 (Cai Kuai [2002] No. 31, hereinafter referred to as Interpretation No. 16), "Accounting treatment of the income tax impactof dividends related to financial instruments classified as equity instruments by the issuer", "Accounting treatment of enterprises'modification of cash-settled share-based payments to equity-settled share-based payments", the contents of which shall beimplemented as of the date of promulgation. The implementation of the relevant provisions of the Interpretation No. 16 has nosignificant impact on the financial statements of the Company during the reporting period.
(2) Changes in major accounting estimates
During the reporting period, the company had no significant changes in accounting estimates.VII. Statement of change in the financial statement consolidation scope compared with theprevious financial report? Applicable □ InapplicableThe Company added a wholly-owned subsidiary in the current period by way of establishment: Jiangxi Fangda IntelligentManufacturing Technology Co., Ltd.VIII. Engaging and dismissing of CPACPA engaged currently
Domestic public accountants name | RSM Thornton (limited liability partnership) |
Remuneration for the domestic public accountants (in RMB10,000) | 150 |
Consecutive years of service by the domestic public accountants | 4 |
Name of certified accountants of the domestic public accountants | Xie Peiren, Zeng Hui, Hu Gaosheng |
Consecutive years of service by the domestic public accountants | Xie Peiren has provided continuous audit services for 2 years, Zeng Hui has provided continuous audit services for 5 years, and Hu Gaosheng has provided continuous audit services for 3 years. |
Overseas public accountants name (if any) | No |
Remuneration for the overseas public accountants (in RMB10,000) | 0 |
Consecutive years of service by the overseas public accountants (if any) | No |
Name of certified accountants of the overseas public accountants (if any) | No |
Consecutive years of service by the domestic public accountants | No |
Whether the CPA is replaced
□ Yes ? No
Engaging of internal control audit CPA, financial advisor and sponsor? Applicable □ InapplicableDuring the reporting period, the Company continued engaging RSM China (limited liability partnership) as the financial statementand internal control auditing CPA with a fee of RMB1.5 million.IX. Delisting after disclosure of annual report
□ Applicable ? Inapplicable
X. Bankruptcy and capital reorganizing
□ Applicable ? Inapplicable
The Company has no bankruptcy or reorganization events in the report period.
XI. Significant lawsuit and arbitration? Applicable □ Inapplicable
Basic information of litigation (arbitration) | Amount (in RMB10,000) | Whether estimated liabilities are formed | Progress of litigation (arbitration) | Litigation (arbitration) hearing results and impact | Enforcement of litigation (arbitration) judgment | Date of disclosure | Index for information disclosure |
Summary of matters in which the subsidiaries as the plaintiff fail to meet the disclosure standards of major litigation (arbitration) | 28,812.28 | No | According to the litigation process, some have been tried and some are under trial | The case has not been closed yet, and it is not expected to have a significant impact on the company's operation and financial status | Some are being implemented, some have not yet been implemented | ||
Summary of matters where the Company and its subsidiaries as defendants fail to meet the disclosure standards of major litigation (arbitration) | 9,125.34 | No | Not completed | The case has not been closed yet, and it is not expected to have a significant impact on the company's operation and financial status | Not completed |
XII. Punishment and rectification
□ Applicable ? Inapplicable
The Company received no penalty and made no correction in the report period.XIII. Credibility of the Company, controlling shareholder and actual controller
? Applicable □ Inapplicable
The Company and its controlling shareholders and actual controllers do not fail to perform the effective judgment of the court, andthe debts with a large amount are not paid off when due.XIV. Material related transactions
1. Related transactions related to routine operation
□ Applicable ? Inapplicable
The Company made no related transaction related to daily operating in the report period.
2. Related transactions related to assets transactions
□ Applicable ? Inapplicable
The Company made no related transaction of assets or equity requisition and sales in the report period.
3. Related transactions related to joint external investment
□ Applicable ? Inapplicable
The Company made no related transaction of joint external investment in the report period.
4. Related credits and debts
□ Applicable ? Inapplicable
The Company had no related debt in the report period.
5. Transactions with related financial companies
□ Applicable ? Inapplicable
There is no deposit, loan, credit or other financial business between the company and the related financial company.
6. Transactions between financial companies controlled by the company and related parties
□ Applicable ? Inapplicable
There is no deposit, loan, credit or other financial business between the financial company controlled by the company and itsrelated parties.
7. Other major related transactions
□ Applicable ? Inapplicable
The Company has no other significant related transaction in the report period.
XV. Significant contracts and performance
1. Asset entrusting, leasing, contracting
(1) Asset entrusting
□ Applicable ? Inapplicable
The Company made no custody in the report period.
(2) Contracting
□ Applicable ? Inapplicable
The Company made no contract in the report period
(3) Leasing
□ Applicable ? Inapplicable
There is no leasing during the reporting period.
2. Significant guarantee
? Applicable □ Inapplicable
In RMB10,000
External guarantees made by the Company and subsidiaries (exclude those made for subsidiaries) | ||||||||||
Guarantee provided to | Date of disclosure | Guarantee amount | Actual date | Actual amount of guarantee | Type of guarantee | Collateral (if any) | Counter guarantee (if any) | Term | Completed or not | Related party |
No | ||||||||||
Guarantee provided to subsidiaries | ||||||||||
Guarantee provided to | Date of disclosure | Guarantee amount | Actual date | Actual amount of guarantee | Type of guarantee | Collateral (if any) | Counter guarantee (if any) | Term | Completed or not | Related party |
Fangda Jianke | March 30, 2022 | 86,000 | November 24, 2022 | 51,980.48 | Joint liability | No | No | since engage of contract to 3 years upon due of debt | No | Yes |
Fangda Jianke | March 23, 2021 | 24,000 | March 9, 2022 | 19,268.42 | Joint liability | No | No | since engage of contract to 3 years | No | Yes |
upon due of debt | ||||||||||
Fangda Jianke | March 30, 2022 | 30,000 | October 19, 2022 | 3,905.58 | Joint liability | No | No | since engage of contract to 3 years upon due of debt | No | Yes |
Fangda Jianke | March 30, 2022 | 50,000 | September 20, 2022 | 29,403.48 | Joint liability | No | No | since engage of contract to 3 years upon due of debt | No | Yes |
Fangda Jianke | March 30, 2022 | 30,000 | September 20, 2022 | 9,426.86 | Joint liability | No | No | since engage of contract to 3 years upon due of debt | No | Yes |
Fangda Jianke | March 30, 2022 | 39,000 | December 9, 2022 | 15,563.11 | Joint liability | No | No | since engage of contract to 3 years upon due of debt | No | Yes |
Fangda Jianke | March 30, 2022 | 15,000 | May 23, 2022 | 15,000 | Joint liability | No | No | since engage of contract to 3 years upon due of debt | No | Yes |
Fangda Jianke | March 30, 2022 | 48,000 | December 15, 2022 | 39,072.64 | Joint liability | No | No | since engage of contract to 3 years upon due of debt | No | Yes |
Fangda Jianke and Fangda Zhichuang | January 30, 2019 | 15,400 | December 18, 2019 | 3,873.06 | Joint liability | No | No | since engage of contract to 3 years upon due of debt | No | Yes |
Fangda Jianke | March 30, 2022 | 20,000 | August 10, 2022 | 4,000 | Joint liability | No | No | since engage of contract to 3 years upon due of debt | No | Yes |
Fangda Jianke | March 30, 2022 | 4,000 | September 8, 2022 | 4,000 | Joint liability | No | No | since engage of contract to 3 years upon due of debt | No | Yes |
Fangda Jianke | March 23, 2021 | 60,000 | December 21, 2021 | 2,864.3 | Joint liability | No | No | since engage of contract to 3 years upon due of debt | No | Yes |
Fangda Zhiyuan | March 30, 2022 | 40,000 | July 4, 2022 | 17,398.05 | Joint liability | No | No | since engage of contract to 3 years upon due of debt | No | Yes |
Fangda Zhiyuan | March 23, 2021 | 15,000 | March 9, 2022 | 3,701.48 | Joint liability | No | No | since engage of contract to 3 years upon due of debt | No | Yes |
Fangda Zhiyuan | March 30, 2022 | 20,000 | October 19, 2022 | 1,187.03 | Joint liability | No | No | since engage of contract | No | Yes |
to 3 years upon due of debt | ||||||||||
Fangda Zhiyuan | March 30, 2022 | 15,000 | November 1, 2022 | 4,862.47 | Joint liability | No | No | since engage of contract to 3 years upon due of debt | No | Yes |
Fangda Zhiyuan | March 30, 2022 | 10,000 | May 23, 2022 | 175.04 | Joint liability | No | No | since engage of contract to 3 years upon due of debt | No | Yes |
Fangda Yunzhu | March 30, 2022 | 600 | May 10, 2022 | 168.41 | Joint liability | No | No | since engage of contract to 3 years upon due of debt | No | Yes |
Fangda Yunzhu | March 30, 2022 | 800 | August 19, 2022 | 65.61 | Joint liability | No | No | since engage of contract to 3 years upon due of debt | No | Yes |
Fangda New Material | March 30, 2022 | 8,500 | September 6, 2022 | 2,353.59 | Joint liability | No | No | since engage of contract to 3 years upon due of debt | No | Yes |
Fangda New Material | March 30, 2022 | 10,000 | April 20, 2022 | 1,828.64 | Joint liability | No | No | since engage of contract to 3 years upon due of | No | Yes |
debt | ||||||||||
Fangda Property | December 4, 2019 | 135,000 | February 25, 2020 | 89,000 | Joint liability | No | No | since engage of contract to 2 years upon due of debt | No | Yes |
Fangda Property | April 18, 2020 | 47,000 | December 16, 2020 | 44,350 | Joint liability | No | No | since engage of contract to 3 years upon due of debt | No | Yes |
Fangda Zhijian | March 30, 2022 | 7,000 | June 1, 2022 | 2,449.35 | Joint liability | No | No | since engage of contract to 3 years upon due of debt | No | Yes |
Total of guarantee to subsidiaries approved in the report term (B1) | 472,900 | Total of guarantee to subsidiaries actually occurred in the report term (B2) | 307,725.27 | |||||||
Total of guarantee to subsidiaries approved as of the report term (B3) | 730,300 | Total of balance of guarantee actually provided to the subsidiaries as of end of report term (B4) | 365,897.59 | |||||||
Guarantee provided to subsidiaries | ||||||||||
Guarantee provided to | Date of disclosure | Guarantee amount | Actual date | Actual amount of guarantee | Type of guarantee | Collateral (if any) | Counter guarantee (if any) | Term | Completed or not | Related party |
No | ||||||||||
Total of guarantee provided by the Company (total of the above three) | ||||||||||
Total of guarantee approved in the report term (A1+B1+C1) | 472,900 | Total of guarantee occurred in the report term (A2+B2+C2) | 307,725.27 | |||||||
Total of guarantee approved as of end of report term (A3+B3+C3) | 730,300 | Total of guarantee occurred as of the end of report term (A4+B4+C4) | 365,897.59 | |||||||
Percentage of the total guarantee occurred | 63.64% |
(A4+B4+C4) on net asset of the Company | |
Including: | |
Guarantees provided to the shareholders, substantial controllers and the related parties (D) | 0 |
Guarantee provided directly or indirectly to objects with over 70% of liability on asset ratio (E) | 0 |
Amount of guarantee over 50% of the net asset (F) | 78,400.55 |
Total of the above 3 (D+E+F) | 78,400.55 |
For the unexpired guarantee contract, the guarantee liability has occurred during the reporting period or there is evidence that it is possible to bear joint and several repayment liability (if any) | No |
Statement of external guarantees violating the procedure (if any) | No |
Note of compound guaranteeNo
3. Entrusted cash capital management
(1) Wealth management
? Applicable □ InapplicableWealth management during the reporting period
In RMB10,000
Type | Source of fund | Amount | Undue balance | Due balance to be recovered | Accrued impairment amount of overdue unrecovered financial management |
Bank financial products | Self-owned fund | 46,560.08 | 0 | 0 | 0 |
Total | 46,560.08 | 0 | 0 | 0 |
Details of high-risk entrusted financial management with significant single amount or low security and poor liquidity
□ Applicable ? Inapplicable
Entrusted financial management expected to fail to recover the principal or likely result in impairment
□ Applicable ? Inapplicable
(2) Trusted loans
□ Applicable ? Inapplicable
The Company borrowed no trust loan in the report period.
4. Other significant contract
□ Applicable ? Inapplicable
The Company entered into no other significant contract in the report.
XVI. Other material events? Applicable □ Inapplicable
1. According to the Company's development strategy and in combination with the development needs of the rail transit screendoor system industry of Fangda Zhiyuan Technology Co., Ltd., the company plans to split Fangda Zhiyuan Technology Co., Ltd.to be listed on the GEM of Shenzhen Stock Exchange. During the reporting period, the 15th meeting of the 9th Board of Directorsof the Company and the first extraordinary general meeting of shareholders in 2022 deliberated and passed the proposal on thespin-off of the subsidiary Fangda Zhiyuan Technology Co., Ltd.'s initial public offering of shares and listing on the GEM, OnDecember 29, 2022, we received the Notice on the Acceptance of the Application Documents for the Initial Public Offering ofShares and Listing on the Growth Enterprise Market (SZSS [2022] No. 577) issued by Shenzhen Stock Exchange. For details,please refer to the relevant announcements disclosed by the company on http//www.cninfo.com.cn. The Company will timelyperform the obligation of information disclosure in accordance with the provisions and requirements of laws and regulationsaccording to the progress of relevant matters.
2. In order to meet the needs of future business development, the Company held the 17th meeting of the 9th Board ofDirectors on December 16, 2022, deliberated and passed the Proposal on Investment and Construction of Fangda (Ganzhou) Low-carbon Intelligent Manufacturing Headquarters Base, and agreed to invest and build Fangda (Ganzhou) Low-carbon IntelligentHeadquarters Base in Zhanggong District, Ganzhou City, Jiangxi Province. For details, see the relevant announcement disclosedby the Company on http//www.cninfo.com.cn. As of the disclosure date of this report, the company has completed the delisting ofthe project land and the signing of the State-owned Construction Land Use Right Transfer Contract.
3. In accordance with the disclosure requirements of the decoration industry in the Self-Regulatory Guidelines for ListedCompanies in Shenzhen Stock Exchange No. 3 - Industry Information Disclosure, the main industry qualifications obtained by thecompany are as follows:
No. | Qualification | Valid period |
1 | Construction curtain wall designing class A | By March 16, 2025 |
2 | Construction curtain wall contracting class A | By December 31, 2023 |
3 | Construction mechanical and electric equipment installation contracting class A | By February 25, 2025 |
4 | Construction decoration contracting class B | By December 31, 2023 |
5 | Steel structure engineering contracting class B | Until December 32, 2023 |
6 | City and road lighting engineering contracting class C | Until December 33, 2023 |
7 | Design and construction of metal roof (wall) surface of building | By January 12, 2024 |
4. According to the disclosure requirements of the decoration industry in the Self-discipline Supervision Guidance for ListedCompanies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure, the company's production safety during thereporting periodIn the report period, the Company's safety management is normal. The Company pays large attention to employees' safetyawareness and capabilities of emergency processing. The Company has strengthened safety production and investigation of safetyrisks. The Company has formulated safety management guidelines to guide safety management. There was no significant safetyaccidents in the report period.XVII. Material events of subsidiaries
□ Applicable ? Inapplicable
Chapter VII Changes in Share Capital and Shareholders
I. Changes in shares
1. Changes in shares
In share
Before the change | Change (+,-) | After the change | |||||||
Quantity | Proportion | Issued new shares | Bonus shares | Transferred from reserves | Others | Subtotal | Quantity | Proportion | |
I. Shares with trade restriction conditions | 2,302,093 | 0.21% | 1,537,200 | 1,537,200 | 3,839,293 | 0.36% | |||
1. State-owned shares | |||||||||
2. State-owned legal person shares | |||||||||
3. Other domestic shares | 2,302,093 | 0.21% | 1,537,200 | 1,537,200 | 3,839,293 | 0.36% | |||
Including: Shares held by domestic legal persons | |||||||||
Domestic natural person shares | 2,302,093 | 0.21% | 1,537,200 | 1,537,200 | 3,839,293 | 0.36% | |||
4. Shares held by foreign investors | |||||||||
Including: Shares held by foreign legal persons | |||||||||
Domestic natural person shares | |||||||||
II. Unrestricted shares | 1,071,572,134 | 99.79% | -1,537,200 | -1,537,200 | 1,070,034,934 | 99.64% | |||
1. Common shares in RMB | 677,413,379 | 63.08% | -1,537,200 | -1,537,200 | 675,876,179 | 62.94% | |||
2. Foreign | 394,158,755 | 36.71% | 394,158,7 | 36.70% |
shares in domestic market | 55 | ||||||||
3. Foreign shares in overseas market | |||||||||
4. Others | |||||||||
III. Total of capital shares | 1,073,874,227 | 100.00% | 0 | 0 | 1,073,874,227 | 100.00% |
Reasons? Applicable □ InapplicableDuring the reporting period, Mr. Xiong Jianming, the chairman of the company, increased his holdings of 2,049,600 RMBordinary shares (A shares) of the Company, so the Company's shares with limited sales conditions increased by 1,537,200 sharesand shares with unlimited sales conditions decreased by 1,537,200 shares.Approval of the change
□ Applicable ? Inapplicable
Share transfer
□ Applicable ? Inapplicable
Impacts on financial indicators including basic and diluted earnings per share, net assets per share attributable to commonshareholders of the Company in the most recent year and period
□ Applicable ? Inapplicable
Others that need to be disclosed as required by the securities supervisor? Applicable □ InapplicableOn May 10, 2022, the Company issued the voluntary announcement on the increase of the Company's shares held by the actualcontroller and the Company under its control on www.cninfo.com.cn.
2. Changes in conditional shares
? Applicable □ Inapplicable
In share
Shareholder name | Conditional shares at beginning of the period | Increased this period | Released this period | Conditional shares at end of the period | Reason of condition | Date of releasing |
Xiong Jianming | 2,295,493 | 1,537,200 | 0 | 3,832,693 | Increase of shareholding | 25% of the annual shareholding is released from the sale |
Total | 2,295,493 | 1,537,200 | 0 | 3,832,693 | -- | -- |
II. Share placing and listing
1. Securities issuance (excluding preference shares) during the report period
□ Applicable ? Inapplicable
2. Statement of changes in share number and shareholder structure, assets and liabilities structure
□ Applicable ? Inapplicable
3. Current employees' shares
□ Applicable ? Inapplicable
III. Shareholders and the substantial controller of the Company
1. Shareholders and shareholding
In share
Number of shareholders of common shares at the end of the report period | 56,188 | Total number of ordinary share shareholders at the end of the month before the disclosure date of the annual report | 55,456 | Number of shareholders of preferred stocks of which voting rights recovered in the report period | 0 | Total number of shareholders of preference shares of which voting rights resumed at the end of the month before the disclosure date of the annual report | 0 | |
Shareholders holding 5% of the Company's shares or top-10 shareholders | ||||||||
Name of shareholder | Nature of shareholder | Shareholding percentage | Number of shares held at the end of the reporting period | Change in the reporting period | Conditional shares | Amount of shares without sales restriction | Pledge, marking or freezing | |
Share status | Quantity | |||||||
Shenzhen Banglin Technologies Development Co., Ltd. | Domestic non-state legal person | 11.11% | 119,332,846 | 0 | 119,332,846 | |||
Shengjiu Investment Ltd. | Foreign legal person | 10.11% | 108,579,318 | 717214 | 108,579,318 | |||
Fang Wei | Domestic natural person | 3.40% | 36,474,388 | 3566210 | 36,474,388 | |||
Gong Qing Cheng Shi | Domestic non-state | 1.48% | 15,860,609 | 0 | 15,860,609 |
Li He Investment Management Partnership Enterprise (limited partner) | legal person | |||||||
Shenwan Hongyuan Securities (Hong Kong) Co., Ltd. | Foreign legal person | 0.51% | 5,508,790 | -272510 | 5,508,790 | |||
VANGUARD EMERGING MARKETS STOCK INDEX FUND | Foreign legal person | 0.50% | 5,409,612 | -903071 | 5,409,612 | |||
Wu Xuandong | Domestic natural person | 0.50% | 5,407,600 | 5407600 | 5,407,600 | |||
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND | Foreign legal person | 0.49% | 5,263,439 | -984301 | 5,263,439 | |||
Xiong Jianming | Domestic natural person | 0.48% | 5,110,257 | 2049600 | 3,832,693 | 1,277,564 | ||
Qu Chunlin | Domestic natural person | 0.41% | 4,397,100 | -340000 | 4,397,100 | |||
A strategic investor or ordinary legal person becomes the Top10 shareholder due a stock issue. | No | |||||||
Notes to top ten shareholder relationship or "action in concert" | Among the shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu Investment Co., Ltd. are parties action-in-concert with Xiong Jianming. Shenzhen Banglin Technology Development Co., Ltd. and its parties action-in-concert and Gong Qing Cheng Shi Li He Investment Management Partnership Enterprise are related parties. The Company is not notified of other action-in-concert or related parties among the other holders. | |||||||
Description of the above shareholders involved in entrusted / entrusted voting right and waiver of voting right | No | |||||||
Special instructions on the existence of special repurchase account among | No |
the top 10 shareholders | |||
Top 10 holders of unconditional shares | |||
Shareholder name | Amount of shares without sales restriction | Category of shares | |
Category of shares | Quantity | ||
Shenzhen Banglin Technologies Development Co., Ltd. | 119,332,846 | RMB common shares | 119,332,846 |
Shengjiu Investment Ltd. | 108,579,318 | Domestically listed foreign shares | 108,579,318 |
Fang Wei | 36,474,388 | RMB common shares | 36,474,388 |
Gong Qing Cheng Shi Li He Investment Management Partnership Enterprise (limited partner) | 15,860,609 | RMB common shares | 15,860,609 |
Shenwan Hongyuan Securities (Hong Kong) Co., Ltd. | 5,508,790 | Domestically listed foreign shares | 5,508,790 |
VANGUARD EMERGING MARKETS STOCK INDEX FUND | 5,409,612 | Domestically listed foreign shares | 5,409,612 |
Wu Xuandong | 5,407,600 | RMB common shares | 5,407,600 |
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND | 5,263,439 | Domestically listed foreign shares | 5,263,439 |
Qu Chunlin | 4,397,100 | RMB common shares | 4,397,100 |
Huang Xueming | 4,056,400 | RMB common shares | 4,056,400 |
No action-in-concert or related parties among the top10 unconditional shareholders and between the top10 unconditional shareholders and the top10 shareholders | Among the shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu Investment Co., Ltd. are parties action-in-concert with Xiong Jianming. Shenzhen Banglin Technology Development Co., Ltd. and its parties action-in-concert and Gong Qing Cheng Shi Li He Investment Management Partnership Enterprise are related parties. The Company is not notified of other action-in-concert or related parties among the other holders. | ||
Top-10 common share shareholders participating in margin trade | Wu Xuandong holds 5,407,600 stocks of the Company through the Huaxi Securities customer credit transaction guarantee securities account. |
Agreed re-purchasing by the Company's top 10 shareholders of common shares and top 10 shareholders of unconditional commonshares in the report period
□ Yes ? No
No agreed re-purchasing by the Company's top 10 shareholders of common shares and top 10 shareholders of unconditionalcommon shares in the report period
2. Profile of the controlling shareholders
Shareholder nature: natural person holdingType of shareholder: legal person
Name of controlling shareholder | Legal representative/responsible person | Date of establishment | Organization code | Main business |
Shenzhen Banglin | Chen Jinwu | June 7, 2001 | 914403007298400552 | Industrial investment, developing |
Technologies Development Co., Ltd. | of electronic products, technical consulting, domestic commerce, material trading | |
Stock ownership of other domestic and overseas listed company controlled or whose shares are held by controlling shareholders | No |
Changes in the controlling shareholder in the reporting period
□ Applicable ? Inapplicable
No change in the controlling shareholder in the report period
3. Actual controller and persons acting in concert
Nature of actual controller: domestic natural personType of actual controller: natural person
Name of substantial controller | Relationship with the actual controller | Nationality | Right of residence in another country or region |
Xiong Jianming | Himself | Chinese | Yes |
Job and position | Served as Chairman and President of the Company. | ||
Profiles of domestic and overseas listed companies in which the controller held shares | The controller held no share in other listed companies in the last ten years. |
Change in the actual controller in the report period
□ Applicable ? Inapplicable
No change in the actual shareholder in the report period
7. Chart of the controlling relationship
Controlling over the Company by the substantial controller through trust or other asset management
□ Applicable ? Inapplicable
4. The cumulative number of Pledged Shares of the Company's controlling shareholder or the largestshareholder and its concerted actors accounts for 80% of the Company's shares
□ Applicable ? Inapplicable
5. Other legal person shareholders with over 10% of total shares
□ Applicable ? Inapplicable
6. Conditional decrease of shareholding by controlling shareholder, actual controller, reorganizer andother entities
□ Applicable ? Inapplicable
IV. Specific implementation of share repurchase in the reporting period
Progress in the implementation of share repurchase
□ Applicable ? Inapplicable
Progress in the implementation of the reduction of shareholding shares by means of centralized bidding
□ Applicable ? Inapplicable
Chapter VIII Preferred Shares
□ Applicable ? Inapplicable
The Company had no preferred share in the report period.
Chapter IX Information about the Company's Securities
□ Applicable ? Inapplicable
Chapter X Financial StatementsI. Auditor's report
Type | Standard opinion auditor's report |
Issued on | February 24, 2023 |
Auditor | RSM China (Special General Partnership) |
Report No. | RSM [2023] No.361Z0007 |
CPA names | Xie Peiren, Zeng Hui, Hu Gaosheng |
Auditors' Report
RSM [2023] No.361Z0007To the shareholders of China Fangda Group Co., Ltd.:
1. Auditors' Opinions
We have audited the financial statements of Fangda Group Co., Ltd. (hereinafter referred to as Fangda group company),including the consolidated and parent company's balance sheet as of December 31, 2022, the consolidated and parent company'sincome statement, consolidated and parent company's cash flow statement, consolidated and parent company's statement ofchanges in owner's equity and notes to relevant financial statements in 2022.We believe that Fangda Group has been following with the Enterprise Accounting Standard in preparing of the FinancialStatements. The Financial Statements is reflecting, in all important aspects, the financial situation of Fangda Group as ofDecember 31, 2022, and the business performance and cash flow of year 2022.
2. Basis of the Opinions
We carried out the auditing works with compliance to Chinese CPA Auditing Standard, The "CPA's Responsibility forAuditing Financial Statements" section of the audit report further elaborated our responsibilities under these guidelines. Inaccordance with the Code of Ethics for Chinese Certified Public Accountants, we are independent of Fangda Group and performother professional ethics duties. We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.
3. Key Audit Matters
The key audit matters are the matters that we believe are most important for the audit of the current financial statementsbased on professional judgment. The response to these matters is based on the overall audit of the financial statements and theformation of an audit opinion. We do not comment on these matters separately.
(1) Income recognition
For related information disclosure, please refer to Note III, 24, Note V, 44 and Note XIII 2 of the financial statements.
1. Description
In 2022, the operating revenue of Fangda Group is 3.847 billion yuan, of which the revenue of curtain wall and metroplatform screen door accounts for 89.46% of the total revenue of the Group.
Fangda Group's performance obligations related to the construction subcontracting contract include building curtain walland metro platform screen door. As the customer can control the commodity under construction in the process of performance ofFangda group, the Company regards it as the performance obligation within a certain period of time, and recognizes the revenueaccording to the performance progress. The Company shall determine the performance schedule of services according to the inputmethod. The performance schedule shall be determined according to the proportion of the actual contract cost to the estimated totalcontract cost. Management needs to make a reasonable estimate of the initial total contract revenue and total contract costs for theEngineering contracting contract and continue to assess and revise it during the contract implementation process, which involvessignificant accounting estimates of the management.
Therefore, we identify revenue recognition related to construction contracts as key audit matters.
2. Audit response
Our audit procedures for revenue recognition related to construction subcontracting contracts mainly include:
(1) Understand and evaluate the design of internal control related to management contract and engineering subcontractingcontract budget and revenue recognition, and test the effectiveness of key control implementation.
(2) Obtained a major engineering subcontracting contract, verified the contract revenue, and reviewed key contract terms.Check the engineering contracting contract and cost budget information on which management expects total revenue and estimatedtotal cost.
(3) Obtain the construction subcontracting contract account and project revenue and cost summary table, carry outanalytical review on the gross profit of the project, and recalculate the performance progress and revenue in the constructionsubcontracting contract account to verify its accuracy.
(4) Select samples to check the project engineering details of the main project, subcontracted labor approval forms, and theowner's production value approval documents and records to verify the contract costs incurred.
(5) Select samples to check if the relevant contract costs are recorded in the appropriate accounting period.
(6) Select a sample to conduct a site inspection of the progress of the project image to verify the reasonableness of theproject's performance schedule.
(2) Measurement of fair value of investment real estate
For related information disclosure, please refer to Note III, 15, Note V, 15 (2), Note V 52 and Note IX of the financialstatements.
1. Description
As of Saturday, December 31, 2022, the book balance of the investment real estate of Fangda group which adopts the fairvalue model for subsequent measurement is 5.751 billion yuan, accounting for 45.12% of the total assets. The income fromchanges in fair value realized in the current period is RMB-10,000,000 which has a great impact on the financial indicators of theGroup's consolidated statements.
The management of Fangda Group annually employs a third-party assessment agency with relevant qualifications toevaluate the fair value of the investment real estate. The evaluation adopts the market comparison method and the income methodto comprehensively analyze various factors that affect the real estate price of the appraisal subject. The assessment of the fair valueof investment real estate involves many estimates and assumptions, such as the analysis of the economic environment and futuretrends of the real estate where the investment real estate is located, discount rates, etc. The changes in estimates and assumptionswill have big impacts on the fair value of the investment real estate evaluated. Therefore, we identify the measurement of fairvalue of investment real estate as a key audit matter.
2. Audit response
Our audit procedures for the measurement of fair value of investment real estate mainly include:
(1) Assess the competency, professional quality, independence and objectivity of third-party assessment agencies employedby the management.
(2) Obtain the assessment report, selected major or typical samples, and use our real estate appraisal experts to review andreview the assessment methods and assumptions used in the assessment report and the rationality of the selected key assessmentparameters. Check the accuracy and relevance of the data used by the management in valuation.
(3) Review the measurement, presentation and disclosure of fair value of investment real estate in the financial statements.
(III) Measurement of expected credit loss of accounts receivable and contract assets
For related information disclosure, please refer to Note III, 9, Note V, 5, Note V, 10 and Note V, 22 of the financialstatements.
1. Description
As of December 31, 2022, the total amount of accounts receivable of the company was RMB1.058 billion, the provision forbad debts accrued was RMB226 million, the total amount of contract assets of the company was RMB2.457 billion, the provisionfor impairment accrued was RMB1.99 billion, and the total amount of accounts receivable and contract assets accounted for 24.25%of the total assets. Due to the large amount of accounts receivable and contract assets of Fangda group, the management needs touse important accounting estimation and judgment when determining the expected recoverable amount of accounts receivable andcontract assets, and the expected credit loss of accounts receivable and contract assets is important for financial statements.Therefore, we determine the measurement of expected credit loss of accounts receivable and contract assets as the key auditaccounting matters.
2. Audit response
(1) Understand and evaluate the effectiveness of internal control design related to the provision for bad debts of accountsreceivable and provision for impairment of contract assets of Fangda Group, and test the effectiveness of key control operation.
(2) Review the relevant considerations and objective evidence of the management's credit risk assessment of accountsreceivable and contract assets, and evaluate whether the management has properly identified the credit risk characteristics ofvarious accounts receivable.
(3) Review the accrual process of bad debt provision for accounts receivable and impairment provision for contract assets ofthe management, including: ① for accounts receivable and contract assets that measure expected credit loss based on portfolio,evaluate the rationality of the management's division of portfolio according to credit risk characteristics; Check the measurementmodel of expected credit loss and evaluate the rationality of major assumptions and key parameters in the model; Obtain thecomparison table between the aging of accounts receivable and the expected credit loss rate for the whole duration prepared by themanagement, and test the accuracy and integrity of the data used by the management and whether the calculation of bad debtreserves is accurate; ② For accounts receivable and contract assets with individual provision for expected credit loss, review theaccuracy and rationality of the information and relevant assumptions used by the management in the test process; Check theaccuracy of the provision for impairment of accounts receivable and contract assets with long aging, accounts receivable andcontract assets involving litigation matters.
(4) According to the characteristics and nature of customer transactions, select samples to implement the accountsreceivable confirmation procedure and check the collection after the period, and evaluate the rationality of the provision for baddebts of accounts receivable.
4. Other information
The management of Fangda Group (hereinafter referred to as management) is responsible for other information. The otherinformation includes the information covered in Fangda Group's 2022 annual report, but does not include the financial statementsand our audit report.
Our audit opinions published in the financial statements do not cover other information and we do not publish any form ofassurance conclusion on other information.
In connection with our audit of the financial statements, our responsibility is to read other information. In the process, weconsider whether there is a material inconsistency or other material misstatement of other information whether it is in the financialstatements or what we have learned during the audit process.
Based on the work we have performed, if we determine that there is a material misstatement of other information, we shouldreport that fact. In this regard, we have nothing to report.
5. Executives' responsibilities on the Financial Statements
(1) Preparing these financial statements according to the Accounting Standards for Business Enterprises and presentingthem fairly; (2) designing, implementing and maintaining necessary internal control to make sure that these financial statementsare free from material misstatement, whether due to fraud or error.
In the preparation of the financial statements, the management is responsible for assessing Fangda Group's ability tocontinue as a going concern, disclosing issues related to going concern (if applicable), and applying the going concern assumptionunless management plans to liquidate Fangda Group, terminate operations or there are no other realistic choices.
The management is responsible for overseeing the financial reporting process of Fangda Group.
6. Auditor's responsibility for auditing financial statements
Our objective is to obtain reasonable assurance as to whether the entire financial statements are free from materialmisstatement due to fraud or error and to issue an audit report containing audit opinions. Reasonable assurance is a high level ofassurance, but it does not guarantee that an audit performed in accordance with auditing standards can always be discovered whena major misstatement exists. The report may be due to fraud or mistakes, and if a reasonable expectation of misstatement alone oraggregated may affect the economic decision-making made by users of financial statements based on the financial statements, themisstatement is generally considered to be material.
In the process of conducting audit work in accordance with auditing standards, we use professional judgment and maintainprofessional suspicion. At the same time, we also perform the following tasks:
(1) Identify and assess risks of material misstatement of financial statements due to fraud or errors, design and implementaudit procedures to address these risks, and obtain adequate and appropriate audit evidence as a basis for issuing audit opinions. Asfraud may involve collusion, forgery, willful omission, misrepresentation or override of internal control, the risk of not discoveringa material misstatement due to fraud is higher than the risk of not discovering a material misstatement resulting from a mistake.
(2) Understand audit-related internal controls to design appropriate audit procedures.
(3) Evaluate the appropriateness of accounting policies adopted by the management and the reasonableness of accountingestimates and related disclosures.
(4) Conclude on the appropriateness of management's use of continuing operations assumptions. At the same time, based onthe audit evidence obtained, it concludes that whether there are major uncertainties in the matters or circumstances that may cause
major doubts about the ability of the Company's continuing operations. If we conclude that there are significant uncertainties, theauditing standards require us to request the users of the report to pay attention to the relevant disclosures in the financialstatements in the audit report; if the disclosure is not sufficient, we should publish non-unqualified opinions. Our conclusions arebased on the information available as of the date of the audit report. However, future events or circumstances may result in FangdaGroup's inability to continue operating.
(5) Evaluate the overall presentation, structure, and content of the financial statements and evaluate whether the financialstatements fairly reflect the relevant transactions and events.
(6) Obtain sufficient and appropriate audit evidence on the financial information of entity or business activities in FangdaGroup to express opinions on the financial statements. We are responsible for directing, supervising and executing group auditsand assume full responsibility for audit opinions.
We communicate with the governance team on planned audit scope, timing, and major audit findings, includingcommunication of the internal control deficiencies that we identified during the audit.
We also provide a statement to the management on compliance with ethical requirements related to independence, andcommunicate with the management on all relationships and other matters that may reasonably be considered to affect ourindependence, as well as related preventive measures (if applicable).
From the matters passed with the management, we determine which items are most important for the audit of the financialstatements of the current period and thus constitute the key audit matters. We describe these matters in our audit report, unlesslaws and regulations prohibit the public disclosure of these matters, or in rare cases, if it is reasonably expected that the negativeconsequences of communicating something in the audit report will outweigh the benefits in the public interest, we determine thatsuch matter should not be communicated in the audit report.
(limited liability partnership) | Xie Peiren (project partner) CPA: Zeng Hui |
Hu Gaosheng | ||
February 24, 2023 |
II. Financial statementsUnit for statements in notes to financial statements: RMB yuan
1. Consolidated Balance Sheet
Prepared by: China Fangda Group Co., Ltd.
December 31, 2022
In RMB
Item | December 31, 2022 | January 1, 2022 |
Current asset: | ||
Monetary capital | 1,238,754,216.50 | 1,287,563,759.32 |
Settlement provision | ||
Outgoing call loan | ||
Transactional financial assets | 25,135,241.89 | |
Derivative financial assets | 789,205.34 | 1,069,587.62 |
Notes receivable | 130,428,554.49 | 166,377,880.01 |
Account receivable | 832,292,348.17 | 556,453,824.20 |
Receivable financing | 1,338,202.01 | 4,263,500.00 |
Prepayment | 20,631,650.59 | 23,022,485.03 |
Insurance receivable | ||
Reinsurance receivable | ||
Provisions of Reinsurance contracts receivable | ||
Other receivables | 155,379,024.22 | 165,093,406.23 |
Including: interest receivable | ||
Dividend receivable | ||
Repurchasing of financial assets | ||
Inventory | 710,532,397.32 | 733,280,924.98 |
Contract assets | 2,158,860,658.43 | 1,782,947,673.13 |
Assets held for sales | ||
Non-current assets due in 1 year | ||
Other current assets | 200,981,963.60 | 264,786,506.29 |
Total current assets | 5,449,988,220.67 | 5,009,994,788.70 |
Non-current assets: | ||
Loan and advancement provided |
Debt investment | ||
Other debt investment | ||
Long-term receivables | ||
Long-term share equity investment | 54,969,042.14 | 55,218,946.14 |
Investment in other equity tools | 11,968,973.86 | 14,180,652.65 |
Other non-current financial assets | 7,507,434.68 | 7,525,408.24 |
Investment real estate | 5,760,517,577.11 | 5,765,352,393.13 |
Fixed assets | 646,812,853.36 | 663,414,297.61 |
Construction in process | 11,642,444.21 | |
Productive biological assets | ||
Gas & petrol | ||
Use right assets | 19,449,693.40 | 31,440,856.54 |
Intangible assets | 72,679,444.26 | 75,199,712.83 |
R&D expense | ||
Goodwill | ||
Long-term amortizable expenses | 9,744,661.01 | 5,388,770.22 |
Deferred income tax assets | 220,060,976.88 | 214,123,733.00 |
Other non-current assets | 491,486,416.65 | 407,856,515.39 |
Total of non-current assets | 7,295,197,073.35 | 7,251,343,729.96 |
Total of assets | 12,745,185,294.02 | 12,261,338,518.66 |
Current liabilities | ||
Short-term loans | 1,318,238,522.78 | 1,287,474,398.65 |
Loans from Central Bank | ||
Call loan received | ||
Transactional financial liabilities | ||
Derivative financial liabilities | 293,400.00 | 11,871.20 |
Notes payable | 734,890,208.56 | 849,445,299.09 |
Account payable | 1,718,036,375.78 | 1,343,123,485.97 |
Prepayment received | 1,439,653.84 | 1,280,482.93 |
Contract liabilities | 207,993,671.55 | 180,186,877.15 |
Selling of repurchased financial assets | ||
Deposit received and held for others | ||
Entrusted trading of securities | ||
Entrusted selling of securities | ||
Employees' wage payable | 67,150,863.91 | 69,071,013.95 |
Taxes payable | 85,827,331.09 | 67,280,647.22 |
Other payables | 113,425,377.70 | 126,903,098.08 |
Including: interest payable | ||
Dividend payable | ||
Fees and commissions payable | ||
Reinsurance fee payable | ||
Liabilities held for sales |
Non-current liabilities due in 1 year | 83,778,647.06 | 78,418,557.76 |
Other current liabilities | 48,133,198.49 | 48,098,361.77 |
Total current liabilities | 4,379,207,250.76 | 4,051,294,093.77 |
Non-current liabilities: | ||
Insurance contract provision | ||
Long-term loans | 1,263,500,000.00 | 1,333,500,000.00 |
Bond payable | ||
Including: preferred stock | ||
Perpetual bond | ||
Lease liabilities | 6,907,456.55 | 19,152,093.31 |
Long-term payable | 197,640,219.18 | 183,640,219.18 |
Long-term employees' wage payable | ||
Anticipated liabilities | 3,372,553.84 | 6,347,809.40 |
Deferred earning | 8,999,880.44 | 9,566,525.60 |
Deferred income tax liabilities | 1,065,172,771.00 | 1,066,631,858.80 |
Other non-current liabilities | ||
Total of non-current liabilities | 2,545,592,881.01 | 2,618,838,506.29 |
Total liabilities | 6,924,800,131.77 | 6,670,132,600.06 |
Owner's equity: | ||
Share capital | 1,073,874,227.00 | 1,073,874,227.00 |
Other equity tools | ||
Including: preferred stock | ||
Perpetual bond | ||
Capital reserves | 11,459,588.40 | 11,459,588.40 |
Less: Shares in stock | ||
Other miscellaneous income | 31,986,716.79 | 35,325,871.78 |
Special reserves | ||
Surplus reserve | 79,324,940.43 | 79,324,940.43 |
Common risk provisions | ||
Retained profit | 4,553,295,402.30 | 4,324,055,259.33 |
Total of owner's equity belong to the parent company | 5,749,940,874.92 | 5,524,039,886.94 |
Minor shareholders' equity | 70,444,287.33 | 67,166,031.66 |
Total of owners' equity | 5,820,385,162.25 | 5,591,205,918.60 |
Total of liabilities and owner's interest | 12,745,185,294.02 | 12,261,338,518.66 |
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua
2. Balance Sheet of the Parent Company
In RMB
Item | December 31, 2022 | January 1, 2022 |
Current asset: | ||
Monetary capital | 87,710,288.64 | 111,848,536.84 |
Transactional financial assets | ||
Derivative financial assets | ||
Notes receivable | ||
Account receivable | 647,944.58 | 585,936.30 |
Receivable financing | ||
Prepayment | 277,763.31 | 212,807.30 |
Other receivables | 1,046,500,428.02 | 1,276,731,665.95 |
Including: interest receivable | ||
Dividend receivable | ||
Inventory | ||
Contract assets | ||
Assets held for sales | ||
Non-current assets due in 1 year | ||
Other current assets | 1,395,020.37 | 1,460,846.55 |
Total current assets | 1,136,531,444.92 | 1,390,839,792.94 |
Non-current assets: | ||
Debt investment | ||
Other debt investment | ||
Long-term receivables | ||
Long-term share equity investment | 1,457,331,253.00 | 1,196,831,253.00 |
Investment in other equity tools | 11,968,973.86 | 14,180,652.65 |
Other non-current financial assets | 30,000,001.00 | 30,000,001.00 |
Investment real estate | 333,236,768.00 | 329,471,982.00 |
Fixed assets | 66,203,194.37 | 71,830,252.61 |
Construction in process | ||
Productive biological assets | ||
Gas & petrol | ||
Use right assets | 12,055,734.65 | 17,224,771.47 |
Intangible assets | 1,038,211.65 | 1,219,737.85 |
R&D expense | ||
Goodwill | ||
Long-term amortizable expenses | 393,807.16 | 218,563.44 |
Deferred income tax assets | 30,304,587.98 | 27,079,997.63 |
Other non-current assets | ||
Total of non-current assets | 1,942,532,531.67 | 1,688,057,211.65 |
Total of assets | 3,079,063,976.59 | 3,078,897,004.59 |
Current liabilities | ||
Short-term loans | 300,247,500.00 | 300,351,666.67 |
Transactional financial liabilities | ||
Derivative financial liabilities | ||
Notes payable | ||
Account payable | 803,645.08 | 606,941.85 |
Prepayment received | 820,758.71 | 858,019.63 |
Contract liabilities | ||
Employees' wage payable | 3,444,985.79 | 3,909,857.23 |
Taxes payable | 353,816.35 | 3,447,040.12 |
Other payables | 308,443,521.52 | 233,531,740.37 |
Including: interest payable | ||
Dividend payable | ||
Liabilities held for sales | ||
Non-current liabilities due in 1 year | 3,613,300.13 | 4,264,397.66 |
Other current liabilities | 25,213.92 | |
Total current liabilities | 617,752,741.50 | 546,969,663.53 |
Non-current liabilities: | ||
Long-term loans | ||
Bond payable | ||
Including: preferred stock | ||
Perpetual bond | ||
Lease liabilities | 9,401,331.72 | 13,560,947.50 |
Long-term payable | ||
Long-term employees' wage payable | ||
Anticipated liabilities | ||
Deferred earning | ||
Deferred income tax liabilities | 74,007,022.67 | 74,447,416.01 |
Other non-current liabilities | ||
Total of non-current liabilities | 83,408,354.39 | 88,008,363.51 |
Total liabilities | 701,161,095.89 | 634,978,027.04 |
Owner's equity: | ||
Share capital | 1,073,874,227.00 | 1,073,874,227.00 |
Other equity tools | ||
Including: preferred stock | ||
Perpetual bond | ||
Capital reserves | 360,835.52 | 360,835.52 |
Less: Shares in stock | ||
Other miscellaneous income | -1,106,214.97 | -520,786.11 |
Special reserves | ||
Surplus reserve | 79,324,940.43 | 79,324,940.43 |
Retained profit | 1,225,449,092.72 | 1,290,879,760.71 |
Total of owners' equity | 2,377,902,880.70 | 2,443,918,977.55 |
Total of liabilities and owner's interest | 3,079,063,976.59 | 3,078,897,004.59 |
3. Consolidated Income Statement
In RMB
Item | 2022 | 2021 |
1. Total revenue | 3,846,975,948.44 | 3,557,724,397.54 |
Incl. Business income | 3,846,975,948.44 | 3,557,724,397.54 |
Interest income | ||
Insurance fee earned | ||
Fee and commission received | ||
2. Total business cost | 3,455,330,616.20 | 3,318,923,983.34 |
Incl. Business cost | 2,917,753,967.52 | 2,761,300,557.48 |
Interest expense | ||
Fee and commission paid | ||
Insurance discharge payment | ||
Net claim amount paid | ||
Net insurance policy responsibility contract reserves provided | ||
Insurance policy dividend paid | ||
Reinsurance expenses | ||
Taxes and surcharges | 66,953,438.48 | 72,326,973.99 |
Sales expense | 54,970,163.01 | 59,877,614.73 |
Administrative expense | 157,138,338.83 | 169,443,658.83 |
R&D cost | 161,812,913.02 | 152,973,582.38 |
Financial expenses | 96,701,795.34 | 103,001,595.93 |
Including: interest cost | 100,581,343.99 | 101,722,768.10 |
Interest income | 23,892,574.84 | 16,575,629.28 |
Add: other gains | 13,909,584.57 | 14,032,939.09 |
Investment gains ("-" for loss) | 6,185,954.47 | -1,459,334.05 |
Incl. Investment gains from affiliates and joint ventures | -249,904.00 | -683,431.81 |
Financial assets derecognised as a result of amortized cost | -3,778,070.96 | -6,336,161.86 |
Exchange gains ("-" for loss) | ||
Net open hedge gains ("-" for loss) | ||
Gains from change of fair value ("-" for loss) | -10,113,947.45 | 23,422,035.73 |
Credit impairment ("-" for loss) | -34,635,724.91 | -7,923,995.43 |
Investment impairment loss ("-" for loss) | -35,575,418.55 | 7,181,339.41 |
Investment gains ("-" for loss) | -1,421,880.09 | -2,291,048.05 |
3. Operational profit ("-" for loss) | 329,993,900.28 | 271,762,350.90 |
Plus: non-operational income | 1,403,387.89 | 2,209,180.56 |
Less: non-operational expenditure | 4,167,958.09 | 6,087,375.71 |
4. Gross profit ("-" for loss) | 327,229,330.08 | 267,884,155.75 |
Less: Income tax expenses | 41,074,830.04 | 41,085,548.73 |
5. Net profit ("-" for net loss) | 286,154,500.04 | 226,798,607.02 |
(1) By operating consistency | ||
1. Net profit from continuous operation ("-" for net loss) | 286,154,500.04 | 226,798,607.02 |
2. Net profit from discontinuous operation ("-" for net loss) | ||
(2) By ownership | ||
1. Net profit attributable to the shareholders of the parent company | 282,933,854.32 | 222,168,142.53 |
2. Minor shareholders' equity | 3,220,645.72 | 4,630,464.49 |
6. After-tax net amount of other misc. incomes | -3,281,545.04 | 33,206,426.49 |
After-tax net amount of other misc. incomes attributed to parent's owner | -3,339,154.99 | 33,247,704.15 |
(1) Other misc. incomes that cannot be re-classified into gain and loss | -1,658,759.09 | -2,894,735.24 |
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 | -1,658,759.09 | -2,894,735.24 |
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 | -1,680,395.90 | 36,142,439.39 |
1. Other comprehensive income that can be transferred to profit or loss under the equity method | ||
2. Fair value change of other debt investment | ||
3. Gains and losses from changes in fair value of available-for-sale financial assets | ||
4. Other credit investment credit impairment provisions | ||
5. Cash flow hedge reserve | -477,624.42 | -4,224,144.67 |
6. Translation difference of foreign exchange statement | 1,238,329.43 | -1,233,457.89 |
7. Others | -2,441,100.91 | 41,600,041.95 |
After-tax net of other misc. income attributed to minority shareholders | 57,609.95 | -41,277.66 |
7. Total of misc. incomes | 282,872,955.00 | 260,005,033.51 |
Total of misc. incomes attributable to the owners of the parent company | 279,594,699.33 | 255,415,846.68 |
Total misc gains attributable to the minor shareholders | 3,278,255.67 | 4,589,186.83 |
8. Earnings per share | ||
(1) Basic earnings per share | 0.26 | 0.21 |
(2) Diluted earnings per share | 0.26 | 0.21 |
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 | 2022 | 2021 |
1. Turnover | 28,268,463.91 | 24,953,602.85 |
Less: Operation cost | 207,701.70 | 460,120.74 |
Taxes and surcharges | 1,047,368.79 | 1,324,210.97 |
Sales expense | ||
Administrative expense | 32,282,732.92 | 32,607,874.44 |
R&D cost | ||
Financial expenses | 10,510,674.85 | 14,039,379.48 |
Including: interest cost | 10,543,271.85 | 13,931,266.37 |
Interest income | 1,232,336.85 | 695,036.74 |
Add: other gains | 160,960.32 | 97,873.78 |
Investment gains ("-" for loss) | 566,025.88 | 33,994,681.44 |
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) | -1,772,536.00 | 1,743,238.00 |
Credit impairment ("-" for loss) | 1,722,726.79 | -3,072.04 |
Investment impairment loss ("-" for loss) | ||
Investment gains ("-" for loss) | -26,464.40 | 2,654.87 |
2. Operational profit ("-" for loss) | -15,129,301.76 | 12,357,393.27 |
Plus: non-operational income | 1,771.93 | 32,837.61 |
Less: non-operational expenditure | 54,784.14 | 110,348.37 |
3. Gross profit ("-" for loss) | -15,182,313.97 | 12,279,882.51 |
Less: Income tax expenses | -3,445,357.33 | 3,426,786.59 |
4. Net profit ("-" for net loss) | -11,736,956.64 | 8,853,095.92 |
(1) Net profit from continuous operation ("-" for net loss) | -11,736,956.64 | 8,853,095.92 |
(2) Net profit from discontinuous operation ("-" for net loss) | ||
5. After-tax net amount of other misc. incomes | -585,428.86 | -149,656.40 |
(1) Other misc. incomes that cannot be re-classified into gain and loss | -1,658,759.09 | -1,658,759.09 |
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 | -1,658,759.09 | -1,658,759.09 |
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 | 1,073,330.23 | 1,509,102.69 |
1. Other comprehensive income that can be transferred to profit or loss under the equity method | ||
2. Fair value change of other debt investment | ||
3. Gains and losses from changes in fair value of available-for-sale financial assets | ||
4. Other credit investment credit impairment provisions | ||
5. Cash flow hedge reserve | ||
6. Translation difference of foreign exchange statement | ||
7. Others | 1,073,330.23 | 1,509,102.69 |
6. Total of misc. incomes | -12,322,385.50 | 8,703,439.52 |
7. Earnings per share | ||
(1) Basic earnings per share | ||
(2) Diluted earnings per share |
5. Consolidated Cash Flow Statement
In RMB
Item | 2022 | 2021 |
1. Net cash flow from business operations: | ||
Cash received from sales of products and providing of services | 3,400,391,396.08 | 3,472,283,389.16 |
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 | 100,113,710.79 | 23,051,730.15 |
Other cash received from business operation | 69,792,677.61 | 120,052,421.59 |
Sub-total of cash inflow from business operations | 3,570,297,784.48 | 3,615,387,540.90 |
Cash paid for purchasing products and services | 2,501,276,962.17 | 2,549,580,998.25 |
Net increase of client trade and advance | ||
Net increase of savings in central bank and brother company | ||
Cash paid for original contract claim | ||
Net increase in funds dismantled | ||
Cash paid for interest, processing fee and commission | ||
Cash paid for policy dividend | ||
Cash paid to and for the staff | 434,624,232.39 | 393,791,110.72 |
Taxes paid | 194,268,739.66 | 518,942,250.11 |
Other cash paid for business activities | 218,916,217.96 | 216,498,478.11 |
Sub-total of cash outflow from business operations | 3,349,086,152.18 | 3,678,812,837.19 |
Cash flow generated by business operations, net | 221,211,632.30 | -63,425,296.29 |
2. Cash flow generated by investment: | ||
Cash received from investment recovery | 2,896,345,770.15 | 2,569,989,730.43 |
Cash received as investment profit | 9,837,299.48 | 5,258,238.74 |
Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 3,106,620.00 | 3,744,251.59 |
Net cash received from disposal of subsidiaries or other operational units | ||
Other investment-related cash received | ||
Sub-total of cash inflow generated from investment | 2,909,289,689.63 | 2,578,992,220.76 |
Cash paid for construction of fixed assets, intangible assets and other long-term assets | 128,217,974.92 | 114,032,878.10 |
Cash paid as investment | 2,872,004,000.00 | 2,581,410,000.00 |
Net increase of loan against pledge | ||
Net cash paid for acquiring subsidiaries and other operational units | ||
Other cash paid for investment | 49,940.00 | 50,000.00 |
Subtotal of cash outflows | 3,000,271,914.92 | 2,695,492,878.10 |
Cash flow generated by investment activities, net | -90,982,225.29 | -116,500,657.34 |
3. Cash flow generated by financing activities: | ||
Cash received from investment | ||
Incl. Cash received from investment attracted by subsidiaries from minority shareholders | ||
Cash received from borrowed loans | 1,670,354,493.21 | 2,185,667,296.03 |
Other cash received from financing activities | 175,000,000.00 | |
Subtotal of cash inflow from financing activities | 1,670,354,493.21 | 2,360,667,296.03 |
Cash paid to repay debts | 1,705,142,253.30 | 1,712,441,117.35 |
Cash paid as dividend, profit, or interests | 152,414,163.36 | 131,745,861.24 |
Incl. Dividend and profit paid by subsidiaries to minority shareholders | 4,560,100.00 | |
Other cash paid for financing activities | 59,823,454.68 | 467,260,641.72 |
Subtotal of cash outflow from financing activities | 1,917,379,871.34 | 2,311,447,620.31 |
Net cash flow generated by financing activities | -247,025,378.13 | 49,219,675.72 |
4. Influence of exchange rate changes on cash and cash equivalents | 8,222,828.59 | -5,429,180.24 |
5. Net increase in cash and cash equivalents | -108,573,142.53 | -136,135,458.15 |
Plus: Balance of cash and cash equivalents at the beginning of term | 892,251,071.59 | 1,028,386,529.74 |
6. Balance of cash and cash equivalents at the end of the period | 783,677,929.06 | 892,251,071.59 |
6. Cash Flow Statement of the Parent Company
In RMB
Item | 2022 | 2021 |
1. Net cash flow from business operations: | ||
Cash received from sales of products and providing of services | 20,735,985.55 | 22,551,848.92 |
Tax refunded | ||
Other cash received from business operation | 3,977,104,356.14 | 4,603,033,499.14 |
Sub-total of cash inflow from business operations | 3,997,840,341.69 | 4,625,585,348.06 |
Cash paid for purchasing products and services | 3,197,334.25 | 1,432,078.40 |
Cash paid to and for the staff | 20,177,382.13 | 19,382,565.12 |
Taxes paid | 9,132,198.00 | 5,394,999.41 |
Other cash paid for business activities | 3,663,216,835.55 | 4,519,631,300.00 |
Sub-total of cash outflow from business operations | 3,695,723,749.93 | 4,545,840,942.93 |
Cash flow generated by business operations, net | 302,116,591.76 | 79,744,405.13 |
2. Cash flow generated by investment: | ||
Cash received from investment recovery | 1,082,000,000.00 | 476,800,000.00 |
Cash received as investment profit | 566,025.88 | 33,994,681.44 |
Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 691,000.00 | 29,891.50 |
Net cash received from disposal of subsidiaries or other operational units | ||
Other investment-related cash received | ||
Sub-total of cash inflow generated from investment | 1,083,257,025.88 | 510,824,572.94 |
Cash paid for construction of fixed assets, intangible assets and other long-term assets | 2,154,542.00 | 310,178.66 |
Cash paid as investment | 1,342,500,000.00 | 476,800,000.00 |
Net cash paid for acquiring subsidiaries and other operational units | ||
Other cash paid for investment | ||
Subtotal of cash outflows | 1,344,654,542.00 | 477,110,178.66 |
Cash flow generated by investment activities, net | -261,397,516.12 | 33,714,394.28 |
3. Cash flow generated by financing activities: | ||
Cash received from investment | ||
Cash received from borrowed loans | 300,000,000.00 | 300,090,000.00 |
Other cash received from financing activities | ||
Subtotal of cash inflow from financing activities | 300,000,000.00 | 300,090,000.00 |
Cash paid to repay debts | 300,000,000.00 | 490,090,000.00 |
Cash paid as dividend, profit, or interests | 64,834,502.57 | 16,439,258.35 |
Other cash paid for financing activities | ||
Subtotal of cash outflow from financing activities | 364,834,502.57 | 506,529,258.35 |
Net cash flow generated by financing activities | -64,834,502.57 | -206,439,258.35 |
4. Influence of exchange rate changes on cash and cash equivalents | -22,821.27 | |
5. Net increase in cash and cash equivalents | -24,138,248.20 | -92,980,458.94 |
Plus: Balance of cash and cash equivalents at the beginning of term | 111,598,536.84 | 204,578,995.78 |
6. Balance of cash and cash equivalents at the end of the period | 87,460,288.64 | 111,598,536.84 |
7. Statement of Change in Owners' Equity (Consolidated)
Amount of the Current Term
In RMB
Item | 2022 | ||||||||||||||
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 reserve | Common risk provisions | Retained profit | Others | Subtotal | |||||
Preferred share | Perpetual bond | Others | |||||||||||||
1. Balance at the end of last year | 1,073,874,227.00 | 11,459,588.40 | 35,325,871.78 | 79,324,940.43 | 4,324,055,259.33 | 5,524,039,886.94 | 67,166,031.66 | 5,591,205,918.60 | |||||||
2. Balance at the beginning of current year | 1,073,874,227.00 | 11,459,588.40 | 35,325,871.78 | 79,324,940.43 | 4,324,055,259.33 | 5,524,039,886.94 | 67,166,031.66 | 5,591,205,918.60 | |||||||
3. Change amount in the current period ("-" for decrease) | -3,339,154.99 | 229,240,142.97 | 225,900,987.98 | 3,278,255.67 | 229,179,243.65 | ||||||||||
(1) Total of | -3,339,15 | 282,933,854. | 279,594,699. | 3,278,255.67 | 282,872,955. |
misc. incomes | 4.99 | 32 | 33 | 00 | |||||||||||
(3) Profit allotment | -53,693,711.35 | -53,693,711.35 | -53,693,711.35 | ||||||||||||
3. Distribution to owners (or shareholders) | -53,693,711.35 | -53,693,711.35 | -53,693,711.35 | ||||||||||||
4. Balance at the end of this period | 1,073,874,227.00 | 11,459,588.40 | 31,986,716.79 | 79,324,940.43 | 4,553,295,402.30 | 5,749,940,874.92 | 70,444,287.33 | 5,820,385,162.25 |
Amount of the Previous Term
In RMB
Item | 2021 | ||||||||||||||
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 reserve | Common risk provisions | Retained profit | Others | Subtotal | |||||
Preferred share | Perpetual bond | Others | |||||||||||||
1. Balance at the end of last year | 1,088,278,951.00 | 11,459,588.40 | 42,748,530.12 | 2,078,167.63 | 106,783,436.96 | 4,215,005,541.52 | 5,380,857,155.39 | 66,538,836.09 | 5,447,395,991.48 | ||||||
Consolidation of entities | 9,000,000.00 | 2,837,784.25 | 11,837,784.25 | 1,315,309.36 | 13,153,093.61 |
under common control | |||||||||||||||
2. Balance at the beginning of current year | 1,088,278,951.00 | 20,459,588.40 | 42,748,530.12 | 2,078,167.63 | 106,783,436.96 | 4,217,843,325.77 | 5,392,694,939.64 | 67,854,145.45 | 5,460,549,085.09 | ||||||
3. Change amount in the current period (“-“ for decrease) | -14,404,724.00 | -9,000,000.00 | -42,748,530.12 | 33,247,704.15 | -27,458,496.53 | 106,211,933.56 | 131,344,947.30 | -688,113.79 | 130,656,833.51 | ||||||
(1) Total of misc. incomes | 33,247,704.15 | 222,168,142.53 | 255,415,846.68 | 4,589,186.83 | 260,005,033.51 | ||||||||||
(2) Investment or decreasing of capital by owners | -14,404,724.00 | -9,000,000.00 | -42,748,530.12 | -28,343,806.12 | -115,070,899.38 | -124,070,899.38 | -1,317,200.62 | -125,388,100.00 | |||||||
1. Common shares invested by | -14,404,724.00 | -42,748,530.12 | -28,343,806.12 |
owners | |||||||||||||||
4. Others | -9,000,000.00 | -115,070,899.38 | -124,070,899.38 | -1,317,200.62 | -125,388,100.00 | ||||||||||
(3) Profit allotment | 885,309.59 | -885,309.59 | -3,960,100.00 | -3,960,100.00 | |||||||||||
1. Provision of surplus reserves | 885,309.59 | -885,309.59 | |||||||||||||
3. Distribution to owners (or shareholders) | -3,960,100.00 | -3,960,100.00 | |||||||||||||
4. Balance at the end of this period | 1,073,874,227.00 | 11,459,588.40 | 35,325,871.78 | 79,324,940.43 | 4,324,055,259.33 | 5,524,039,886.94 | 67,166,031.66 | 5,591,205,918.60 |
8. Statement of Change in Owners' Equity (Parent Company)
Amount of the Current Term
In RMB
Item | 2022 | |||||||||||
Share capital | Other equity tools | Capital reserves | Less: Shares in stock | Other miscellaneous income | Special reserves | Surplus reserve | Retained profit | Others | Total of owners' equity | |||
Preferred share | Perpetual bond | Others | ||||||||||
1. Balanc | 1,073,874,227.00 | 360,835.52 | -520,786.11 | 79,324,940.43 | 1,290,879,760.71 | 2,443,918,977.55 |
e at the end of last year | ||||||||||||
2. Balance at the beginning of current year | 1,073,874,227.00 | 360,835.52 | -520,786.11 | 79,324,940.43 | 1,290,879,760.71 | 2,443,918,977.55 | ||||||
3. Change amount in the current period (“-“ for decrease) | -585,428.86 | -65,430,667.99 | -66,016,096.85 | |||||||||
(1) Total of misc. incomes | -585,428.86 | -11,736,956.64 | -12,322,385.50 | |||||||||
(3) Profit allotment | -53,693,711.35 | -53,693,711.35 | ||||||||||
2. Distribution to owners (or shareholders) | -53,693,711.35 | -53,693,711.35 | ||||||||||
4. Balance at the end of this period | 1,073,874,227.00 | 360,835.52 | -1,106,214.97 | 79,324,940.43 | 1,225,449,092.72 | 2,377,902,880.70 |
Amount of the Previous Term
In RMB
Item | 2021 | |||||||||||
Share capital | Other equity tools | Capital reserves | Less: Shares in | Other miscellaneous incom | Special reserve | Surplus reserve | Retained profit | Others | Total of owners | |||
Preferred | Perpetual | Others |
share | bond | stock | e | s | ' equity | |||||||
1. Balance at the end of last year | 1,088,278,951.00 | 360,835.52 | 42,748,530.12 | -371,129.71 | 106,783,436.96 | 1,282,911,974.38 | 2,435,215,538.03 | |||||
2. Balance at the beginning of current year | 1,088,278,951.00 | 360,835.52 | 42,748,530.12 | -371,129.71 | 106,783,436.96 | 1,282,911,974.38 | 2,435,215,538.03 | |||||
3. Change amount in the current period ("-" for decrease) | -14,404,724.00 | -42,748,530.12 | -149,656.40 | -27,458,496.53 | 7,967,786.33 | 8,703,439.52 | ||||||
(1) Total of misc. incomes | -149,656.40 | 8,853,095.92 | 8,703,439.52 | |||||||||
(2) Investment or decreasing of capital by owners | -14,404,724.00 | -42,748,530.12 | -28,343,806.12 | |||||||||
1. Common shares invested by owners | -14,404,724.00 | -42,748,530.12 | -28,343,806.12 | |||||||||
(3) Profit allotment | 885,309.59 | -885,309.59 | ||||||||||
1. Provision of surplus | 885,309.59 | -885,309.59 |
reserves | ||||||||||||
4. Balance at the end of this period | 1,073,874,227.00 | 360,835.52 | -520,786.11 | 79,324,940.43 | 1,290,879,760.71 | 2,443,918,977.55 |
III. General Information
1. About the Company
China Fangda Group Co., Ltd. (the "Company" or the "Group") is a joint stock company registered in Shenzhen,Guangdong and was approved by the Government of Shenzhen with Document 深府办函 (1995) 194号, and was founded, on thebasis of Shenzhen Fangda Construction Material Co., Ltd., by way of share issuing in October 1995. The unified social credit codeis: 91440300192448589C; registered address: Fangda Technology Building, Keji South 12th Road, South District, High-techIndustrial Park, Nanshan District, Shenzhen. Mr. Xiong Jianming is the legal representative.The Company issued foreign currency shares (B shares) and local currency shares (A shares) and listed in November 1995and April 1996 respectively in Shenzhen Stock Exchange. The Company received the Reply to the Non-public Share Issuance ofFangda China Group Co., Ltd. (CSRC License [2016] No.825) to allow the Company to conduct non-public issuance of32,184,931 A-shares in June 20116. According to the profit distribution plan for 2016 approved by the 2016 general shareholders'meeting, the Company issued five shares for every ten shares to all shareholders through surplus capitalization based on the total789,094,836 shares on December 31, 2016. The registered capital at the end of 2017 was RMB 1,183,642,254.00. The Companyrepurchased and cancelled 28,160,568.00 B shares in August 2018, 32,097,497.00 B shares in January 2019, 35,105,238.00 Bshares in May 2020, 14404724.00 B shares in April 2021 and cancelled in April 2021. The existing registered capital isRMB1,073,874,227.00 yuan.The Company has established the corporate governance structure of the General Meeting of Shareholders, the Board ofDirectors and the Board of Supervisors. At present, it has set up the President's Office, the Administration Department, the HumanResources Department, the Enterprise Management Department, the Finance Department, the Audit and Supervision Department,the Securities Department, the Legal Department, the Information Management Department, the Technology InnovationDepartment, the Development Planning Department and other departments, and has Shenzhen Fangda Construction TechnologyGroup Co., Ltd. (hereinafter referred to as Fangda Construction Technology Co., Ltd.) Fangda Zhiyuan Technology Co., Ltd.
(formerly known as Fangda Zhichuang Technology Co., Ltd., renamed in January 2022, hereinafter referred to as Fangda ZhiyuanTechnology Co., Ltd.), Fangda Jiangxi New Materials Co., Ltd., Fangda Real Estate Co., Ltd., Fangda New Energy Co., Ltd. andother subsidiaries.The business nature and main business activities of the Company and its subsidiaries include: (1) curtain wall division,production and sales of curtain wall materials, design, production and installation of building curtain walls, and curtain wall testingand maintenance services; (2) Rail transit branch, assembly and processing of subway screen doors, screen door detection andmaintenance services; (3) The real estate division is engaged in real estate development, operation and property management onthe land that has legally obtained the right to use; (4) New energy division, photovoltaic power generation and sales; R&D,installation and sales of photovoltaic equipment, design and installation of photovoltaic power station project.
Date of financial statement approval: This financial statement is approved by the Board of Directors of the Company onFebruary 24, 2023.
2. Consolidation Scope and Change
This part of the simplified disclosure is as follows: The Company in the current period includes a total of 34 subsidiaries, ofwhich 1 have been added this year and 2 have been reduced this year. For details, please refer to "Note 6, Change of the scope ofmerger" and "Note 7, Rights and Interests in Other Subjects".IV. Basis for the preparation of financial statements
1. Preparation basis
The Company prepares the financial statements based on continuous operation and according to actual transactions andevents, with figures confirmed and measured in compliance with the Accounting Standards for Business Enterprises and otherspecific account standards, application guide and interpretations. The Company has also disclosed related financial informationaccording to the requirement of the Regulations of Information Disclosure No.15 – General Provisions for Financial Statements(Revised in 2014) issued by the CSRC.
2. Continuous operation
The Company assessed the continuing operations capability of the Company for the 12 months from the end of the reportingperiod. No matters were found that would affect the Company's ability to continue as a going concern. It is reasonable for theCompany to prepare financial statements based on continuing operations.V. Significant Account Policies and EstimatesThe following major accounting policies and accounting estimates shall be formulated in accordance with the accountingstandards of the enterprise. Unmentioned operations are carried out in accordance with the relevant accounting policies in theenterprise accounting standards.
1. Statement of compliance to the Enterprise Accounting Standard
These financial statements meet the requirements of the Accounting Standards for Business Enterprises and truly and fullyreflect the Company's financial status, performance result, changes in shareholders' equity and cash flows.
2. Fiscal Period
The Company The fiscal period ranges between January 1 and December 31 of the Gregorian calendar.
3. Operation period
Our normal business cycle is one year
4. Bookkeeping standard money
The Company's bookkeeping standard currency is Renminbi, and overseas subsidiaries are based on the currency of themain economic environment in which they operate.
5. Accounting treatment of the entities under common and different control
(1) Consolidation of entities under common control
The assets and liabilities acquired by the Company in a business combination are measured at the book value of thecombined party in the consolidated financial statements of the ultimate controlling party on the date of combination. Among them,if the accounting policy adopted by the merger party is different from that adopted by the Company before the merger, the
accounting policy is unified based on the principle of importance, that is, the book value of the assets and liabilities of the mergerparty is adjusted according to the accounting policy of the Company. If there is a difference between the book value of the netassets acquired by the Company in the business combination and the book value of the consideration paid, first adjust the balanceof the capital reserve (capital premium or equity premium), the balance of the capital reserve (capital premium or equity premium)If it is insufficient to offset, the surplus reserve and undistributed profits will be offset in sequence.See Note III 6 (5) for the accounting treatment method of business combination under the same control through step-by-steptransaction.
(2) Consolidation of entities under different control
All identifiable assets and liabilities acquired by the Company during the merger shall be measured at its fair value on thedate of purchase. Among them, if the accounting policy adopted by the merger party is different from that adopted by theCompany before the merger, the accounting policy is unified based on the principle of importance, that is, the book value of theassets and liabilities of the merger party is adjusted according to the accounting policy of the Company. The merger cost of theCompany on the date of purchase is greater than the fair value of the assets and liabilities recognized by the purchaser in themerger, and is recognized as goodwill. If the merger cost is less than the difference between the identifiable assets and the fairvalue of the liabilities obtained by the purchaser in the enterprise merger, the merger cost and the fair value of the identifiableassets and the liabilities obtained by the purchaser in the enterprise merger are reviewed, and the merger cost is still less than thefair value of the identifiable assets and liabilities obtained by the purchaser after the review, the difference is considered as theprofit and loss of the current period of the merger.See Note III 6 (5) for the accounting treatment method of business combination under the same control through step-by-steptransaction.
(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 tothe merger of entities are accounted into current income account when occurred. The transaction fees of equity certificates orliability certificates issued by the purchaser for payment for the acquisition are accounted at the initial amount of the certificates.
6. Preparation of Consolidated Financial Statements
(1) Consolidation scope
The consolidated scope of the consolidated financial statements is determined on a control basis and includes not onlysubsidiaries determined on the basis of voting rights (or similar voting rights) themselves or in conjunction with otherarrangements, but also structured subjects determined on the basis of one or more contractual arrangements.Control means the power possessed by the Company on invested entities to share variable returns by participating in relatedactivities of the invested entities and to impact the amount of the returns by using the power. The subsidiary company is thesubject controlled by the Company (including the enterprise, the divisible part of the invested unit and the structured subjectcontrolled by the enterprise, etc.). The structured subject is the subject which is not designed to determine the controlling party bytaking the voting right or similar right as the decisive factor.
(2) Preparation of Consolidated Financial Statements
The Company prepares consolidated financial statements based on the financial statements of itself and its subsidiaries andbased on other relevant information.
The Company compiles consolidated financial statements, regards the whole enterprise group as an accounting entity,reflects the overall financial status, operating results and cash flow of the enterprise group according to the confirmation,measurement and presentation requirements of the relevant enterprise accounting standards, and the unified accounting policy andaccounting period.
① Merge the assets, liabilities, owner's rights and interests, income, expenses and cash flow of parent company andsubsidiary company.
② Offset the long-term equity investment of the parent company to the subsidiary company and the share of the parentcompany in the ownership rights of the subsidiary company.
③ Offset the influence of internal transaction between parent company, subsidiary company and subsidiary company. If aninternal transaction indicates that the relevant asset has suffered an impairment loss, the part of the loss shall be confirmed in full.
④ adjust the special transaction from the angle of enterprise group.
(3) Processing of subsidiaries during the reporting period
① Increase of subsidiaries or business
A. Subsidiary or business increased by business combination under the same control(A) When preparing the consolidated balance sheet, adjust the opening number of the consolidated balance sheet and adjustthe related items of the comparative statement. The same report entity as the consolidated balance sheet will exist from the time ofthe final control party.(B) When preparing the consolidated cash flow statement, the cash flows of the subsidiary and the business combinationfrom the beginning of the current period to the end of the reporting period are included in the consolidated cash flow statement,and the related items of the comparative statement are adjusted, which is regarded as the combined report body since the final Thecontroller has been there since the beginning of control.(C) When preparing the consolidated cash flow statement, the cash flows of the subsidiary and the business combinationfrom the beginning of the current period to the end of the reporting period are included in the consolidated cash flow statement,and the related items of the comparative statement are adjusted, which is regarded as the combined report body since the final Thecontroller has been there since the beginning of control.B. Subsidiary or business increased by business combination under the same control(A) When preparing the consolidated balance sheet, the opening number of the consolidated balance sheet is not adjusted.(B) When preparing the consolidated profit statement, the income, expense and profit of the subsidiary company and thebusiness Purchase date and Closing balance shall be included in the consolidated profit statement.(C) When the consolidated cash flow statement is prepared, the cash flow from the purchase date of the subsidiary to theend of the reporting period is included in the consolidated cash flow statement.
② Disposal of subsidiaries or business
A. When preparing the consolidated balance sheet, the opening number of the consolidated balance sheet is not adjusted.B. When preparing the consolidated profit statement, the income, expense and profit of the subsidiary company and thebusiness opening and disposal date shall be included in the consolidated profit statement.
C. When the consolidated cash flow statement is prepared, the cash flow from the Beginning of the period of the subsidiaryto the end of the reporting period is included in the consolidated cash flow statement.
(4) Special considerations in consolidation offsets
① The long-term equity investment held by a subsidiary company shall be regarded as the inventory shares of the Companyas a subtraction of the owner's rights and interests, which shall be listed under the item of "subtraction: Stock shares" under theitem of owner's rights and interests in the consolidated balance sheet.
The long-term equity investments held by the subsidiaries are offset by the shares of the shareholders of the subsidiaries.
② The "special reserve" and "general risk preparation" projects, because they are neither real capital (or share capital) norcapital reserve, but also different from the retained income and undistributed profits, are restored according to the ownership of theparent company after the long-term equity investment is offset by the ownership rights and interests of the subsidiary company.
③ If there is a temporary difference between the book value of assets and liabilities in the consolidated balance sheet andthe taxable basis of the taxpayer due to the offset of the unrealized internal sales gain or loss, the deferred income tax asset or thedeferred income tax liability is confirmed in the consolidated balance sheet, and the income tax expense in the consolidated profitstatement is adjusted, with the exception of the deferred income tax related to the transaction or event directly included in theowner's equity and the merger of the enterprise.
④ The unrealized internal transaction gains and losses incurred by the Company from selling assets to subsidiaries shall befully offset against the "net profit attributable to the owners of the parent company". The unrealized internal transaction gains andlosses arising from the sale of assets by the subsidiary to the Company shall be offset between the "net profit attributable to theowners of the parent company" and the "minority shareholder gains and losses" in accordance with the Company's distributionratio to the subsidiary. The unrealized internal transaction gains and losses arising from the sale of assets between subsidiariesshall be offset between the "net profit attributable to the owners of the parent company" and the "minority shareholders' gains andlosses" in accordance with the Company's distribution ratio to the seller's subsidiary .
⑤ If the current loss shared by the minority shareholders of the subsidiary exceeds the share of the minority shareholders inthe owner 's equity of the subsidiary at the beginning of the period, the balance should still be offset against the minorityshareholders 'equity.
(5) Accounting treatment of special transactions
① Purchase minority shareholders' equity
The Company purchases the shares of the subsidiaries owned by the minority shareholders of the subsidiaries. In theindividual financial statements, the investment costs of the newly acquired long-term investments of the minority shares shall bemeasured at the fair value of the price paid. In the consolidated financial statements, the difference between the newly acquiredlong-term equity investment due to the purchase of minority equity and the share of net assets that should be continuouslycalculated by the subsidiary since the purchase date or the merger date should be adjusted according to the new shareholding ratio.The product (capital premium or equity premium), if the capital reserve is insufficient to offset, the surplus reserve andundistributed profits are offset in turn.
② Step-by-step acquisition of control of the subsidiary through multiple transactions
A. Enterprise merger under common control through multiple transactions
On the date of the merger, the Company determines the initial investment cost of the long-term equity investment in theindividual financial statements based on the share of the subsidiary 's net assets that should be enjoyed after the merger in the finalcontroller 's consolidated financial statements; the initial investment cost and the The difference between the book value of thelong-term equity investment before the merger plus the book value of the consideration paid for new shares acquired on the mergerdate, the capital reserve (capital premium or equity premium) is adjusted, and the capital reserve (capital premium or equitypremium) is insufficient to offset Reduced, in turn offset the surplus reserve and undistributed profits.
In consolidated financial statements, assets and liabilities obtained by the merging party from the merged party should bemeasured at the book value in the final controlling party's consolidated financial statements other than the adjustment made due todifferences in accounting policies; adjust the capital surplus (share premium) according to the difference between the initialinvestment cost and the book value of the held investment before merger plus the book value of the consideration paid on themerger date. Where the capital surplus falls short, the retained income should be adjusted.
If the merging party holds the equity investment before acquiring the control of the merged party and is accounted foraccording to the equity method, the date of acquiring the original equity and the merging party and the merged party are in thesame party's final control from the later date to the merger date The relevant gains and losses, other comprehensive income and
other changes in owner's equity have been confirmed between them, and the retained earnings at the beginning of the comparativestatement period should be offset separately.A. Enterprise merger under common control through multiple transactionsOn the merger day, in individual financial statements, the initial investment cost of the long-term equity investment on themerger day is based on the book value of the long-term equity investment previously held plus the sum of the additionalinvestment costs on the merger day.In the consolidated financial statements, the equity of the purchaser held prior to the date of purchase is revalued accordingto the fair value of the equity at the date of purchase, and the difference between the fair value and its book value is credited to thecurrent investment income; If the shares held by the purchaser prior to the date of purchase involve other consolidated gains underthe equity law accounting, the other consolidated gains related thereto shall be converted to the current gains on the date ofpurchase, with the exception of the other consolidated gains arising from the remeasurement of the net assets or net liabilities ofthe merged party. The Company disclosed in the notes the fair value of the equity of the purchased party held before the purchasedate and the amount of related gains or losses remeasured according to the fair value.
(3) The Company disposes of long-term equity investment in subsidiaries without losing controlThe parent company partially disposes of the long-term equity investment in the subsidiary company without losing control.In the consolidated financial statements, the disposal price corresponds to the disposal of the long-term equity investment. Thedifference between the shares is adjusted for the capital reserve (capital premium or equity premium). If the capital reserve isinsufficient to offset, the retained earnings are adjusted.
④ The Company disposes of long-term equity investment in subsidiaries and loses control
A. One transaction dispositionIf the Company loses control over the Invested Party due to the disposal of part of the equity investment, it shall remeasurethe remaining equity according to its fair value at the date of loss of control when compiling the consolidated financial statement.The sum of the consideration obtained from the disposal of equity and the fair value of the remaining equity minus the differencebetween the share of the original subsidiary 's net assets that should be continuously calculated from the purchase date or themerger date, calculated as the loss of control The investment income of the current period.
Other comprehensive income and other owner's equity changes related to the equity investment of the atomic company aretransferred to the current profit and loss when the control is lost, except for other comprehensive income arising from theremeasurement of the net benefits or net assets of the defined benefit plan by the investee. .B. Multi-transaction step-by-step dispositionIn consolidated financial statements, you should first determine whether a step-by-step transaction is a "blanket transaction".If the step-by-step transaction does not belong to a "package deal", in the individual financial statements, for eachtransaction before the loss of control of the subsidiary, the book value of the long-term equity investment corresponding to eachdisposal of equity is carried forward, the price received and the disposal The difference between the book value of the long-termequity investment is included in the current investment income; in the consolidated financial statements, it should be handled inaccordance with the relevant provisions of "the parent company disposes of the long-term equity investment in the subsidiarywithout losing control."If a step-by-step transaction belongs to a "blanket transaction", the transaction shall be treated as a transaction that disposesof the subsidiary and loses control; In individual financial statements, the difference between each disposal price before the loss ofcontrol and the book value of the long-term equity investment corresponding to the equity being disposed of is first recognized asother consolidated gains and then converted to the current loss of control at the time of the loss of control; In the consolidatedfinancial statements, for each transaction prior to the loss of control, the difference between the disposition of the price and thedisposition of the investment corresponding to the share in the net assets of the subsidiary shall be recognized as otherconsolidated gains and shall, at the time of the loss of control, be transferred to the loss of control for the current period.Where the terms, conditions, and economic impact of each transaction meet one or more of the following conditions,usually multiple transactions are treated as a "package deal":
(a) These transactions were concluded at the same time or in consideration of mutual influence.
(b) These transactions can only achieve the business result as a whole;
(c) The effectiveness of one transaction depends the occurance of at least another transaction;
(d) A single transaction is not economic and is economic when considered together with other transactions.
(5) Proportion of minority shareholders in factor companies who increase capital and dilute ownership of parent companiesProportion of Others ( minority shareholders in factor companies who increase capital , dilute Subsidiaries of parentcompanies. In the consolidated financial statements, the share of the parent company in the net book assets of the formersubsidiary of the capital increase is calculated according to the share ratio of the parent company before the capital increase, thedifference between the share and the net book assets of the latter subsidiary after the capital increase is calculated according to theshare ratio of the parent company, the capital reserve (capital premium or capital premium), the capital reserve (capital premium orcapital premium) is not offset, and the retained income is adjusted.
7. Recognition of cash and cash equivalents
Cash refers to cash in stock and deposits that can be used for payment at any time. Cash equivalents refer to investmentswith a short holding period (generally referring to expiry within three months from the date of purchase), strong liquidity, easy toconvert to a known amount of cash, and little risk of value change.
8.Foreign exchange business and foreign exchange statement translation
(1) Methods for determining conversion rates in foreign currency transactions
When the Company's foreign currency transactions are initially confirmed, they will be converted into the bookkeepingstandard currency at the spot exchange rate on the transaction date.
(2) Methods of conversion of foreign currency currency currency items on balance sheet days
At the balance sheet date, foreign currency items are translated on the spot exchange rate of the balance sheet date. Theexchange differences caused by the difference in exchange rates on the balance sheet date and initial recognizing date or previousbalance sheet date are included in the current profits and losses. Non-monetary items accounted in foreign currency and onhistorical costs are exchanged with the spot exchange rate on the transaction date. Non-monetary items accounted in foreigncurrency and on fair value are exchanged with the spot exchange rate on the determination date of the fair value. The exchangedifference between the accounting standard-currency amount and the original accounting standard-currency amount are includedin the current profits and losses.
(3) Translation of foreign exchange statements
Prior to the conversion of the financial statements of an enterprise's overseas operations, the accounting period and policy ofthe overseas operations should be adjusted to conform to the accounting period and policy of the enterprise. The financialstatements of the corresponding currency (other than the functional currency) should be prepared according to the adjustedaccounting policy and the accounting period. The financial statements of the overseas operations should be converted according tothe following methods:
① The assets and liabilities items in the balance sheet are translated at the spot exchange rate on the balance sheet date.Except for the "undistributed profits" items, the owner's equity items are translated at the spot exchange rate when they occur.
② The income and expense items in the profit statement are converted at the spot exchange rate on the transaction date orthe approximate exchange rate of the spot exchange rate.
③ The foreign currency cash flow and the foreign subsidiary's cash flow are converted using the immediate exchange rateor the approximate exchange rate at the date of the cash flow. The impact of exchange rate changes on cash should be used as anadjustment item and presented separately in the cash flow statement.
④ During the preparation of the consolidated financial statements, the resulting foreign currency financial statementconversion variance is presented separately under the owner's equity item in the consolidated balance sheet.
When foreign operations are disposed of and the control rights are lost, the difference in foreign currency statements relatedto the overseas operations that are listed in the shareholders' equity items in the balance sheet is transferred to the profit or loss forthe current period, either in whole or in proportion to the disposal of the foreign operations.
9. Financial instrument
Financial instrument refers to a company's financial assets and contracts that form other units of financial liabilities orequity instruments.
(1) Recognition and de-recognition of financial instrument
The Company recognizes a financial asset or liability when it becomes one party in the financial instrument contract.
Financial asset is derecognized when:
① The contractual right to receive the cash flows of the financial assets is terminated;
② The financial asset is transferred and meets the following derecognition condition.
If the current obligation of a financial liability (or part of it) has been discharged, the Company derecognises the financialliability (or part of the financial liability). When the Company (borrower) and lender enter into an agreement to replace theoriginal financial liabilities by undertaking new financial liabilities and the contract terms for the new financial liabilities areessentially different from those for the original one, the original financial liabilities will be derecognized and new financialliabilities will be recognized. Where the Company makes substantial amendments to the contract terms of the original financialliability (or part thereof), it shall terminate the original financial liability and confirm a new financial liability in accordance withthe amended terms.Financial asset transactions in regular ways are recognized and de-recognized on the transaction date. The conventional saleof financial assets means the delivery of financial assets in accordance with the contractual terms and conditions, at the time setout in the regulations or market practices. Transaction date refers to the date when the Company promises to buy or sell financialassets.
(2) Classification and subsequent measurement of financial assets
At initial recognition, the Company classifies financial assets into the following three categories based on the businessmodel of managing financial assets and the contractual cash flow characteristics of financial assets: financial assets measured atamortized cost are measured at fair value and their changes are included in other financial assets with current profit and loss andfinancial assets measured at fair value through profit or loss. Unless the Company changes the business model for managingfinancial assets, in this case, all affected financial assets are reclassified on the first day of the first reporting period after thebusiness model changes, otherwise the financial assets may not be initially confirmed.
Financial assets are measured at the fair value at the initial recognition. For financial assets measured at fair value withvariations accounted into current income account, related transaction expenses are accounted into the current income. For otherfinancial assets, the related transaction expenses are accounted into the initial recognized amounts. Bills receivable and accountsreceivable arising from the sale of commodities or the provision of labor services that do not contain or do not consider significantfinancing components, the Company performs initial measurement according to the transaction price defined by the incomestandard.
The subsequent measurement of financial assets depends on their classification:
① Financial assets measured at amortized cost
Financial assets that meet the following conditions at the same time are classified as financial assets measured at amortizedcost: The Company 's business model for managing this financial asset is to collect contractual cash flows as its goal; the contractterms of the financial asset stipulate that Cash flow is only the payment of principal and interest based on the outstanding principalamount. For such financial assets, the actual interest rate method is used for subsequent measurement according to the amortizedcost. The gains or losses arising from the termination of recognition, amortization or impairment based on the actual interest ratemethod are included in the current profit and loss.
② Financial assets measured at fair value and whose changes are included in other comprehensive income
Financial assets that meet the following conditions at the same time are classified as financial assets measured at fair valueand their changes are included in other comprehensive income: The Company's business model for managing this financial asset isto both target the collection of contractual cash flows and the sale of financial assets. Objective; The contractual terms of thefinancial asset stipulate that the cash flow generated on a specific date is only for the payment of principal and interest based onthe outstanding principal amount. For such financial assets, fair value is used for subsequent measurement. Except for impairmentlosses or gains and exchange gains and losses recognized as current gains and losses, changes in the fair value of such financialassets are recognized as other comprehensive income. Until the financial asset is derecognized, its accumulated gains or losses aretransferred to current gains and losses. However, the relevant interest income of the financial asset calculated by the actual interestrate method is included in the current profit and loss.
The Company irrevocably chooses to designate a portion of non-tradable equity instrument investment as a financial assetmeasured at fair value and whose variation is included in other consolidated income. Only the relevant dividend income isincluded in the current profit and loss, and the variation of fair value is recognized as other consolidated income.
③ Financial assets measured at fair value with variations accounted into current income account
The above financial assets measured at amortized cost and other financial assets measured at fair value and whose changesare included in other comprehensive income are classified as financial assets measured at fair value and whose changes are
included in the current profit and loss. For such financial assets, fair value is used for subsequent measurement, and all changes infair value are included in current profit and loss.
(3) Classification and measurement of financial liabilities
The Company classifies financial liabilities into financial liabilities measured at fair value and their changes included in thecurrent profit and loss, loan commitments and financial guarantee contract liabilities for loans below market interest rates, andfinancial liabilities measured at amortized cost.The subsequent measurement of financial liabilities depends on their classification:
① Financial liabilities measured at fair value with variations accounted into current income account
Such financial liabilities include transactional financial liabilities (including derivatives that are financial liabilities) andfinancial liabilities designated as at fair value through profit or loss. After the initial recognition, the financial liabilities aresubsequently measured at fair value. Except for the hedge accounting, the gains or losses (including interest expenses) arerecognized in profit or loss. However, for the financial liabilities designated as fair value and whose variations are included in theprofits and losses of the current period, the variable amount of the fair value of the financial liability due to the variation of creditrisk of the financial liability shall be included in the other consolidated income. When the financial liability is terminated, thecumulative gains and losses previously included in the other consolidated income shall be transferred out of the other consolidatedincome and shall be included in the retained income.
② Loan commitments and financial security contractual liabilities
A loan commitment is a promise that the Company provides to customers to issue loans to customers with establishedcontract terms within the commitment period. Loan commitments are provided for impairment losses based on the expected creditloss model.
A financial guarantee contract refers to a contract that requires the Company to pay a specific amount of compensation tothe contract holder who suffered a loss when a specific debtor is unable to repay the debt in accordance with the original ormodified debt instrument terms. Financial guarantee contract liabilities are subsequently measured based on the higher of the lossreserve amount determined in accordance with the principle of impairment of financial instruments and the initial recognitionamount after deducting the accumulated amortization amount determined in accordance with the revenue recognition principle.
③ Financial liabilities measured at amortized cost
After initial recognition, other financial liabilities are measured at amortized cost using the effective interest method.Except in special circumstances, financial liabilities and equity instruments are distinguished according to the followingprinciples:
① If the Company cannot unconditionally avoid delivering cash or other financial assets to fulfill a contractual obligation,the contractual obligation meets the definition of financial liability. While some financial instruments do not explicitly containterms and conditions for the delivery of cash or other financial assets, they may indirectly form contractual obligations throughother terms and conditions.If a financial instrument is required to be settled with or can be settled with the Company's own equity instruments, theCompany's own equity instrument used to settle the instrument needs to be considered as a substitute for cash or other financialassets or for the holder of the instrument to enjoy the remaining equity in the assets after all liabilities are deducted. If it is theformer, the instrument is the financial liabilities of the issuer; if it is the latter, the instrument is the equity instrument of the issuer.In some cases, a financial instrument contract provides that the Company shall or may use its own instrument of interest, in whichthe amount of a contractual right or obligation is equal to the amount of the instrument of its own interest which may be acquiredor delivered multiplied by its fair value at the time of settlement, whether the amount of the contractual right or obligation is fixedor is based entirely or in part on a variation of a variable other than the market price of the instrument of its own interest, such asthe rate of interest, the price of a commodity or the price of a financial instrument, the contract is classified as a financial liability.
(4) Derivative financial instruments and embedded derivatives
Derivative financial instruments are initially measured at the fair value of the day when the derivative transaction contract issigned, and are subsequently measured at their fair values. Derivative financial instruments with a positive fair value arerecognized as asset, and instruments with a negative fair value are recognized as liabilities.
The gains and losses arising from the change in fair value of derivatives are directly included in the profits and losses of thecurrent period, except that the part of the cash flow that is valid in the hedge is included in the other consolidated income andtransferred out when the hedged item affects the gain and loss of the current period.
For a hybrid instrument containing an embedded derivative instrument, if the principal contract is a financial asset, thehybrid instrument as a whole applies the relevant provisions of the financial asset classification. If the main contract is not afinancial asset, and the hybrid instrument is not measured at fair value and its changes are included in the current profit and lossfor accounting, the embedded derivative does not have a close relationship with the main contract in terms of economiccharacteristics and risks, and it is If the instruments with the same conditions and exist separately meet the definition of derivativeinstruments, the embedded derivative instruments are separated from the mixed instruments and treated as separate derivativefinancial instruments. If the fair value of the embedded derivative on the acquisition date or the subsequent balance sheet datecannot be measured separately, the hybrid instrument as a whole is designated as a financial asset or financial liability measured atfair value and whose changes are included in the current profit or loss.
(5) Financial instrument Less
The Company shall confirm the preparation for loss on the basis of expected credit loss for financial assets measured atamortization costs, creditor's rights investments measured at fair value, contractual assets, leasing receivables, loan commitmentsand financial guarantee contracts, etc.
① Measurement of expected credit losses of accounts receivable
The expected credit loss refers to the weighted average of the credit losses of financial instruments that are weighted by therisk of default. Credit loss refers to the difference between all contractual cash flows receivable from the contract and all cashflows expected to be received by the Company at the original actual interest rate, that is, the present value of all cash shortages.Among them, the financial assets which have been purchased or born by the Company shall be discounted according to the actualrate of credit adjustment of the financial assets.
The expected lifetime credit loss is the expected credit loss due to all possible default events during the entire expected lifeof the 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.
On each balance sheet day, the Company measures the expected credit losses of financial instruments at different stages.Where the credit risk has not increased significantly since the initial confirmation of the financial instrument, it is in the first stage.The Company measures the preparation for loss according to the expected credit loss in the next 12 months. Where the credit riskhas increased significantly since the initial confirmation but the credit impairment has not occurred, the financial instrument is inthe second stage. Where a credit impairment has occurred since the initial confirmation of the financial instrument, it shall be inthe third stage, and the Company shall prepare for measuring the expected credit loss of the whole survival period of theinstrument.For financial instruments with low credit risk on the balance sheet date, the Company assumes that the credit risk has notincreased significantly since the initial recognition, and measures the loss provision based on the expected credit losses in the next12 months.For financial instruments that are in the first and second stages and with lower credit risk, the Company calculates interestincome based on their book balances and actual interest rates without deduction for impairment provision. For financialinstruments in the third stage, interest income is calculated based on the amortized cost and the actual interest rate after the bookbalance minus the provision for impairment.Regarding bills receivable, accounts receivable and financing receivables, regardless of whether there is a significantfinancing component, the Company measures the loss provision based on the expected credit losses throughout the duration.Accounts receivable/contract assetsWhere there is objective evidence of impairment, as well as other receivable instruments, receivables, other receivables,receivables financing and long-term receivables applicable to individual assessments, separate impairment tests are performed toconfirm expected credit losses and prepare individual impairment. For notes receivable, accounts receivable, other receivables,financing of receivables, long-term receivables, and contract assets for which there is no objective evidence of impairment, orwhen individual financial assets cannot be assessed at a reasonable cost, the Company divides bills receivable, accounts receivable,other receivables, receivable financing, long-term receivables, and contract assets into several combinations based on credit riskcharacteristics, and calculates expected credit losses on the basis of the combination. The basis for determining the combination isas follows:
The basis for determining the combination of notes receivable is as follows:
Notes Receivable Combination 1 Commercial Acceptance BillNotes Receivable Combination 2 Bank Acceptance BillFor Notes receivable divided into portfolios, the Company refers to historical credit loss experience, combined with currentconditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit lossrate within the next 12 months or the entire duration Expected credit losses.The basis for determining the combination of accounts receivable is as follows:
Accounts receivable combination 1 Accounts receivable businessAccounts receivable combination 2 Real estate receivable businessAccounts receivable combination 3 Others receivable businessOther receivable portfolio 4 Receivables from related parties within the scope of consolidationFor the accounts receivable divided into a combination, the Company refers to the historical credit loss experience,combined with the current situation and the forecast of the future economic situation, compiles the account receivable age and thewhole expected credit loss rate table, and calculates the expected credit loss.The basis for determining the combination of other receivables is as follows:
Other receivable portfolio 1 Interest receivablePortfolio of other receivables 2 Dividends receivableOther combinations of receivables 3 Deposit and margin receivableOther receivable portfolio 4 Receivable advancesCombination of other receivables 5 Value-added tax receivable is increased and refundedOther receivable portfolio 6 Receivables from related parties within the scope of consolidation
Other receivables portfolio 7 Other receivablesFor other receivables divided into portfolios, the Company refers to historical credit loss experience, combined with currentconditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit lossrate within the next 12 months or the entire duration Expected credit losses.The basis for determining the combination of receivables financing is as follows:
Receivables financing portfolio 1 bank acceptance billFor Notes receivable divided into portfolios, the Company refers to historical credit loss experience, combined with currentconditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit lossrate within the next 12 months or the entire duration Expected credit losses.The basis for determining the portfolio of contract assets is as follows:
Contract assets portfolio 1 conditional collection right of salesContract assets portfolio 2 Completed and unsettled project not meeting collection conditionsContract assets portfolio 3 Quality guarantee deposit not meeting collection conditionsFor contract assets divided into portfolios, the Company refers to historical credit loss experience, combined with currentconditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit lossrate within the next 12 months or the entire duration Expected credit losses.Other debt investmentFor other receivables divided into portfolios, the Company refers to historical credit loss experience, combined with currentconditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit lossrate within the next 12 months or the entire duration Expected credit losses.
② Lower credit risk
If the risk of default on financial instruments is low, the borrower's ability to meet its contractual cash flow obligations inthe short term is strong, and even if the economic situation and operating environment are adversely changed over a long period oftime, it may not necessarily reduce the receivables' performance of their contractual cash. The ability of the flow obligation, thefinancial instrument is considered to have a lower credit risk.
③ Significant increase in credit risk
The Company compares the default probability of the financial instrument during the expected lifetime determined by thebalance sheet date with the default probability of the expected lifetime during the initial confirmation to determine the relativeprobability of the default probability of the financial instrument during the expected lifetime Changes to assess whether the creditrisk of financial instruments has increased significantly since 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 unnecessaryadditional costs or effort. The information considered by the Company includes:
A. Significant changes in internal price indicators resulting from changes in credit risk;
B. Adverse changes in business, financial or economic conditions that are expected to cause significant changes in thedebtor's ability to perform its debt service obligations;
C. Whether the actual or expected operating results of the debtor have changed significantly; whether the regulatory,economic or technical environment of the debtor has undergone significant adverse changes;
D. Whether there is a significant change in the value of the collateral used as debt collateral or the guarantee provided by athird party or the quality of credit enhancement. These changes are expected to reduce the debtor's economic motivation forrepayment within the time limit specified in the contract or affect the probability of default;
E. Whether there is a significant change in the economic motivation that is expected to reduce the debtor's repaymentaccording to the contractual deadline;
F. Anticipated changes to the loan contract, including whether the expected violation of the contract may result in theexemption or revision of contract obligations, granting interest-free periods, rising interest rates, requiring additional collateral orguarantees, or making other changes to the contractual framework of financial instruments change;
G. Whether the expected performance and repayment behavior of the debtor has changed significantly;
H. Whether the contract payment is overdue for more than (including) 30 days.
Based on the nature of financial instruments, the Company assesses whether credit risk has increased significantly on thebasis of a single financial instrument or combination of financial instruments. When conducting an assessment based on acombination of financial instruments, the Company can classify financial instruments based on common credit risk characteristics,such as overdue information and credit risk ratings.
If the overdue period exceeds 30 days, the Company has determined that the credit risk of financial instruments hasincreased significantly. Unless the Company does not have to pay excessive costs or efforts to obtain reasonable and warrantedinformation, it proves that although it has exceeded the time limit of 30 days agreed upon in the Contract, credit risks have notincreased significantly since the initial confirmation.
④ Financial assets with credit impairment
The Company assesses on the balance sheet date whether financial assets measured at amortized cost and credit investmentsmeasured at fair value and whose changes are included in other comprehensive income have undergone credit impairment. Whenone or more events that adversely affect the expected future cash flows of a financial asset occur, the financial asset becomes afinancial asset that has suffered a credit impairment. Evidence that credit impairment has occurred in financial assets includes thefollowing observable information:
Major financial difficulties have occurred to the issuer or the debtor; Breach of contract by the debtor, such as payment ofinterest or default or overdue of principal; (B) The concession that the debtor would not make under any other circumstances foreconomic or contractual considerations relating to the financial difficulties of the debtor; The debtor is likely to be bankrupt orundertake other financial restructuring; The financial difficulties of the issuer or debtor lead to the disappearance of the activemarket for the financial asset; To purchase or generate a financial asset at a substantial discount, which reflects the fact that acredit loss has occurred.
⑤ Presentation of expected credit loss measurement
In order to reflect the changes in the credit risk of financial instruments since the initial recognition, the Company re-measures the expected credit losses on each balance sheet date, and the increase or reversal of the loss provision resultingtherefrom is included as an impairment loss or gain. Current profit and loss. For financial assets measured at amortized cost, theloss allowance offsets the book value of the financial asset listed on the balance sheet; for debt investments measured at fair valueand whose changes are included in other comprehensive income, the Company Recognition of its loss provisions in gains does notoffset the book value of the financial asset.
⑥ Canceled
If it is no longer reasonably expected that the contract cash flow of the financial assets will be fully or partially recovered,the book balance of the financial assets will be directly reduced. Such write-off constitute the derecognition of related financialassets. This usually occurs when the Company determines that the debtor has no assets or sources of income that generatesufficient cash flow to cover the amount that will be written down.
If the financial assets that have been written down are recovered in the future, the reversal of the impairment loss is includedin the profit or loss of the current period.
(6) Transfer of financial assets
The transfer of financial assets refers to the following two situations:
A. Transfer the contractual right to receive cash flow of financial assets to another party;
B. Transfers the financial assets to the other party in whole or in part, but reserves the contractual right to collect the cashflow of the financial assets and undertakes the contractual obligation to pay the collected cash flow to one or more recipients.
① De-identification of transferred financial assets
Those who have transferred almost all risks and rewards in the ownership of financial assets to the transferee, or haveneither transferred nor retained almost all the risks and rewards in the ownership of financial assets, but have given up control ofthe financial assets, terminate the confirmation The financial asset.
In determining whether control over the transferred financial asset has been waived, the actual capacity of the transferor tosell the financial asset is determined. If the transferor is able to sell the transferred financial assets wholly to a third party that doesnot have a relationship with them, and has no additional conditions to limit the sale, it indicates ds has waived control over thefinancial assets.The Company pays attention to the essence of financial asset transfer when judging whether financial asset transfer meetsthe condition of financial asset termination.If the overall transfer of financial assets meets the conditions for termination of confirmation, the difference between thefollowing two amounts is included in the current profit and loss:
A. Continuing identification of transferred Book value;
B. The sum of the amount received as a result of the transfer and the amount accrued as a result of the change in the fairvalue of the transfer in respect of the termination recognized portion of the amount previously charged directly to the otherconsolidated proceeds (the financial assets involved in the transfer are those classified in accordance with Article 18 of EnterpriseAccounting Standard No. 22 - Financial Instruments Recognition and Measurement as measured by the fair value and whosechange is charged to the other consolidated proceeds).
If the partial transfer of financial assets meets the conditions for derecognition, the book value of the entire transferredfinancial assets will be included in the derecognized part and the unterminated part (in this case, the retained service assets areregarded as part of the continued recognition of financial assets) Between them, they are apportioned according to their respectiverelative fair values on the transfer date, and the difference between the following two amounts is included in the current profit andloss:
A. Termination of the book value of the recognized portion on the date of derecognition;
B. The sum of the amount received as a result of the transfer and the amount accrued as a result of the change in the fairvalue of the transfer in respect of the termination recognized portion of the amount previously charged to the other consolidatedproceeds (the financial assets involved in the transfer are those classified in accordance with Article 18 of Enterprise AccountingStandard No. 22 - Financial Instruments Recognition and Measurement as measured by the fair value and whose change is chargedto the other consolidated proceeds).
② Continue to be involved in the transferred financial assets
If neither transfer nor retain almost all the risks and rewards of the ownership of financial assets, and have not given upcontrol of the financial assets, the relevant financial assets should be confirmed according to the extent of their continuedinvolvement in the transferred financial assets, and the relevant liabilities should be recognized accordingly.The extent to which the transferred financial assets continue to be involved refers to the extent to which the enterpriseundertakes the risk or compensation of the value change of the transferred financial assets.(III) Continuing identification of transferred financial assetsWhere almost all risks and remuneration in relation to ownership of the transferred financial assets are retained, the wholeof the transferred financial assets shall continue to be recognized and the consideration received shall be recognized as a financialliability.The financial asset and the recognized related financial liabilities shall not offset each other. In the subsequent accountingperiod, the enterprise shall continue to recognize the income (or gain) generated by the financial asset and the costs (or losses)incurred by the financial liability.
(7) Deduction of financial assets and liabilities
Financial assets and financial liabilities should be listed separately in the balance sheet, and cannot be offset against eachother. However, if the following conditions are met, the net amount offset by each other is listed in the balance sheet:
The Company has a statutory right to offset the confirmed amount, and such legal right is currently enforceable;
The Company plans to settle the net assets or realize the financial assets and liquidate the financial liabilities at the sametime.
The transferring party shall not offset the transferred financial assets and related liabilities if it does not meet the conditionsfor terminating the recognition.
(8) Recognition of fair value of Finance instruments
For the method of determining the fair value of financial assets and financial liabilities, see Chapter X, V. importantaccounting policies and accounting estimates 34. Other important accounting policies and accounting estimates.
10. Notes receivable
See Chapter X, V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.
11. Account receivable
See Chapter X, V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.The Company needs to comply with the disclosure requirements of the decoration and decoration industry in the Guidelines for theSelf-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.
12. Receivable financing
See Chapter X, V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.
13. Other receivables
Methods for Determining Expected Credit Loss of Other Receivables and Accounting Processing MethodsSee Chapter X, V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.
14. Inventories
(1) Classification of inventories
Inventory refers to the finished products or commodities held by the Company for sale in daily activities, the products inprocess of production, the materials and materials consumed in the process of production or providing labor services, includingentrusted processing materials, raw materials, products in process, materials in transit, stored goods, low value consumables,development costs, development products and contract performance costs, etc.
(2) Pricing of delivering inventory
Inventories are measured at cost when procured. Raw materials, products in process and commodity stocks in transit aremeasured by the weighted average method.
The inventory of real estate business mainly includes inventory materials, development costs, development products, etc.The actual costs of development products include land transfer payment, infrastructure and facility costs, installation engineeringcosts, borrows before completion of the development and other costs during the development process. The special maintenance
funds collected in the first period are included in the development overheads. When the control right of development products istransferred, the individual valuation method is used to determine its actual cost.
(3) Inventory system
The Company inventory adopts the perpetual inventory system, counting at least once a year, the inventory profit and lossamount is included in the current year's profit and loss.
(4) Recognition of inventory realizable value and providing of impairment provision
On the balance sheet date, inventories are accounted depending on which is lower between the cost and the net realizablevalue. If the cost is higher than the net realizable value, the impairment provision will be made.
The realizable net value of inventory should be recognized based on solid evidence with the purpose of the inventory andafter-balance-sheet-date events taken into consideration.
(1) In the course of normal production and operation, the net realizable value of finished goods, commodities and materialsdirectly used for sale shall be determined by the estimated price of the inventory minus the estimated cost of sale and related taxes.The inventory held for the execution of a sales contract or a labor contract shall be measured on the basis of the contract price asits net realizable value; If the quantity held is greater than the quantity ordered under the sales contract, the net realizable value ofthe excess inventory is measured on the basis of the general sales price. For materials used for sale, the market price shall be usedas the measurement basis for the net realizable value.
②In the normal production and operation process, the inventory of materials that need to be processed is determined by theamount of the estimated selling price of the finished product minus the estimated cost to be incurred at the time of completion,estimated sales expenses and related taxes Realize the net value. If the net realizable value of the finished product produced by it ishigher than the cost, the material is measured at cost; If the decrease in the price of the material indicates that the net realizablevalue of the finished product is lower than the cost, the material is measured as the net realizable value and the inventory isprepared for a decrease based on its difference.
③ Depreciation preparation of inventory is generally based on a single inventory item; For a large number of inventorieswith a lower unit price, they are accrued by inventory type.
④ If the factors affecting the previous write-down of inventory value have disappeared on the balance sheet date, theamount of the write-down will be restored and transferred back within the amount of inventory depreciation reserve that has beenaccrued, and the amount returned will be included in the current profit and loss.
(5) Methods of amortization of swing materials
Low-value consumables are amortized on on-off amortization basis at using.
Packages are amortized on on-off amortization basis at using.
15. Contract assets
The Company presents contract assets or liabilities in the balance sheet according to the relationship between performanceobligation and customer payment. The consideration for which the Company is entitled to receive (subject to factors other than thepassage of time) for the transfer of goods or the provision of services to customers is listed as contract assets. The Company'sobligation to transfer goods or provide services to customers for consideration received or receivable from customers is listed ascontractual liabilities.
For the determination method and accounting treatment method of the Company's expected credit loss of contract assets, see
9. Financial instruments in Chapter X, V. Important accounting policies and accounting estimates.
Contract assets and contract liabilities are listed separately in the balance sheet. Contract assets and contract liabilities underthe same contract are listed in net amount. If the net amount is the debit balance, it shall be listed in "contract assets" or "other noncurrent assets" according to its liquidity; if the net amount is the credit balance, it shall be listed in "contract liabilities" or "othernon current liabilities" according to its liquidity. Contract assets and contract liabilities under different contracts cannot offset eachother.
16. Contract costs
Contract cost is divided into contract performance cost and contract acquisition cost.
The cost incurred by the Company in performing the contract shall be recognized as an asset when the following conditionsare met simultaneously:
The cost is directly related to a current or expected contract, including direct labor, direct materials, manufacturing expenses(or similar expenses), clearly borne by the customer, and other costs incurred only due to the contract;
② This cost increases the Company's future resources for fulfilling its performance obligations.
③ The cost is expected to be recovered.
If the incremental cost incurred by the Company to obtain the contract is expected to be recovered, it shall be recognized asan asset as the contract acquisition cost.
The assets related to the contract cost shall be amortised on the same basis as the income from goods or services related tothe assets; however, if the amortization period of the contract acquisition cost is less than one year, the Company shall include it inthe current profit and loss when it occurs.
If the book value of the assets related to the contract cost is higher than the difference between the following two items, theCompany will make provision for impairment for the excess part and recognize it as the loss of asset impairment, and furtherconsider whether the estimated liabilities related to the loss contract should be made:
① The residual consideration expected to be obtained due to the transfer of goods or services related to the asset;
② The estimated cost to be incurred for the transfer of the relevant goods or services.
If the above provision for impairment of assets is subsequently reversed, the book value of the asset after reversal shall notexceed the book value of the asset on the reversal date without provision for impairment.
The contract performance cost recognized as an asset with an amortization period of no more than one year or one normalbusiness cycle at the time of initial recognition shall be listed in the "inventory" item, and the amortization period of no more thanone year or one normal business cycle at the time of initial recognition shall be listed in the "other non current assets" item.The contract acquisition cost recognized as an asset shall be listed in the item of "other current assets" when the amortizationperiod does not exceed one year or one normal business cycle at the time of initial recognition, and listed in the item of "other noncurrent assets" when the amortization period exceeds one year or one normal business cycle at the time of initial recognition.
17. Long-term share equity investment
The Group's long-term equity investment includes control on invested entities and significant impacts on equity investment.Invested entities on which the Group has significant impacts are associates of the Group.
(1) Basis for recognition of common control and major influence on invested entities
Common control refers to the common control of an arrangement in accordance with the relevant agreement, and therelevant activities of the arrangement must be agreed upon by the participants who share control. In determining whether there iscommon control, the first step is to determine whether all or a group of participants collectively control the arrangement, which isconsidered collective control by all or a group of participants if all or a group of participants must act together to determine theactivities associated with the arrangement. Secondly, it is judged whether the decision on related activities of the arrangement mustbe agreed by the participants who collectively control the arrangement. If there is a combination of two or more parties that cancollectively control an arrangement, it does not constitute joint control. When judging whether there is joint control, the protectiverights enjoyed are not considered.
Major influence refers to the power to participate in decision-making of financial and operation policies of a company, butcannot control or jointly control the making of the policies. When considering whether the Company can impose significantimpacts on the invested entity, impacts of conversion of shares with voting rights held directly or indirectly by the investor andvoting rights that can be executed in this period held by the investor and other party into shares of the invested entity should beconsidered.
If the Company directly or through subsidiaries holds more than 20% (inclusive) but less than 50% of the shares with votingrights of the invested entity, unless there is clear evidence proving that the Company cannot participate the decision-making ofproduction and operation of the invested entity, the Company has major influence on the invested entity.
(2) Recognition of initial investment costs
? Long-term equity investments formed by merger of enterprises shall be determined in accordance with the followingprovisions:
A. In the case of an enterprise merger under the same control, where the merging party makes a valuation of the merger bypayment of cash, transfer of non-cash assets or undertaking liabilities, the share of the book value of the owner's interest in thefinal controlling party's consolidated financial statements as the initial investment cost of the long-term equity investment at the
date of the merger. The difference between the initial investment cost of long-term equity investment and the cash paid, thetransferred non-cash assets and the book value of the debt assumed shall be adjusted to the capital reserve; if the capital reserve isinsufficient to offset, the retained earnings shall be adjusted;Long-term equity investment generated by enterprise merger: for long-term equity investment obtained by merger ofenterprises under common control, the obtained share of book value of the interests of the merged party's owner in the consolidatefinancial statements on the merger date is costs; for long-term equity investment obtained by merger of enterprises not undercommon control, the merger cost is the investment cost. Adjust the capital reserve according to the difference between the initialinvestment cost of long-term equity investment and the total face value of the issued shares. If the capital reserve is insufficient tooffset or reduce, the retained income shall be adjusted;For merger of entities under different control, the merger cost is the fair value of the asset paid, liability undertaken, andequity securities issued for exchanging of control power over the entities at the day of acquisition. Agency expenses and otheradministrative expenses such as auditing, legal consulting, or appraisal services occurred relating to the merger of entities areaccounted into current income account when occurred.
? Long-term equity investments formed by merger of enterprises shall be determined in accordance with the followingprovisions:
For long-term equity investment obtained by cash, the actually paid consideration is the initial investment cost. Initialinvestment costs include expenses, taxes and other necessary expenditures directly related to the acquisition of long-term equityinvestments;
B. Long-term equity investments acquired from the issuance of interest securities are the initial investment costs based onthe fair value of the issue interest securities;
C. For long-term equity investments obtained through non-monetary asset exchanges, if the exchange has commercialsubstance and the fair value of the exchanged assets or exchanged assets can be reliably measured, the fair value of the exchangedassets and relevant taxes shall be used as the initial Investment cost, the difference between the fair value and book value of theswapped-out asset is included in the current profit and loss; if the non-monetary asset exchange does not meet the above twoconditions at the same time, the book value of the swapped-out asset and relevant taxes will be used as the initial investment cost.
D. Long-term equity investments acquired through debt restructuring determine their recorded value at the fair value of thewaived claims and other costs such as taxes directly attributable to the assets and account for the difference between the fair valueand the book value of the waived claims.
(3) Subsequent measurement and recognition of gain/loss
The Company uses the cost method to measure long-term share equity investment in which the Company can control theinvested entity; and uses the equity method to measure long-term share equity investment in which the Company has substantialinfluence on the invested entity.
① Cost
For the long-term equity investment measured on the cost basis, except for the announced cash dividend or profit includedin the practical cost or price when the investment was made, the cash dividends or profit distributed by the invested entity arerecognized as investment gains in the current gain/loss account.
Equity
Gains from long-term equity investment measured by equity
When the equity method is used to measure long-term equity investment, the investment cost will not be adjusted if theinvestment cost of the long-term equity investment is larger than the share of fair value of the recognizable assets of the investedentity. When it is smaller than the share of fair value of the recognizable assets of the invested entity, the book value will beadjusted and the difference is included in the current gains of the investment.
When the equity method is used, the current investment gain is the share of the net gain realized in the current year that canbe shared or borne, recognized as investment gain and other misc. income. The book value of the long-term equity investment isadjusted accordingly. The book value of the long-term equity investment should be accordingly decreased based on the share ofprofit or cash dividend announced by the invested entity; according to other changes in the owner's equity except for net profit andloss, other misc income and profit distribution of the invested entity, adjust the book value of the long-term equity investment andrecord it in the capital surplus (other capital surplus). When the share of the net gains that can be enjoyed is recognized, it isrecognized after the net profit of the invested entity is adjusted based on the fair value of the recognizeable assets of the investedentity according to the Company's accounting policies and accounting period. Where the accounting policy and accounting period
adopted by the Invested unit are inconsistent with the Company, the financial statements of the Invested unit shall be adjusted inaccordance with the accounting policy and accounting period of the Company, and the investment income and other consolidatedincome shall be recognized. Internal transaction gain not realized between the Company and affiliates is measured according to theshareholding proportion and the investment gains is recoginzied after deduction. The unrealized internal transaction loss betweenthe Company and the invested entity is the impairment loss of transferred assets and should not be written off.Where substantial influence on invested entities is imposed or joint control is implemented due to increase in investment,the sum of the fair value of the original equity and increased investment on the conversion date is the initial investment cost underthe equity method. If the equity investment originally held is classified as other equity instrument investment, the differencebetween the fair value and the book value, as well as the accumulated gains or losses originally included in other comprehensiveincome, shall be transferred out of other comprehensive income and included in retained income in the current period when theequity method is adopted.Where joint control or substantial influence on invested entities is lost due to disposal of part of investment, the remainingequity after the disposal should be treated according to the Enterprise Accounting Standard No.22 – Recognition and Measurementof Financial Instruments from the date of losing the joint control or substantial influence. The difference between the fair valueand book value should be accounted the profit and loss of the current period. For other misc. incomes of original share equityinvestment determined using the equity method, when the equity method is no longer used, it should be treated based on the samebasis of the treatment of related assets or liability of the invested entities; the other owners' interests related to the original shareequity investment should be transferred to gain/loss of the current period.
(4) Equity investment held for sale
For the remaining equity investments not classified as assets held for sale, the equity method is adopted for accountingtreatment.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. The classification isadjusted to hold the financial statements for the period to be sold.
(5) Impairment examination and providing of impairment provision
For the investment in subsidiaries and associated enterprises, the method of withdrawing asset impairment is shown inChapter X, V. important accounting policies and accounting estimates. 24. Impairment of long-term assets.XVIII. Investment real estates
(1) Classification of investment real estate
Investment real estates are held for rent or capital appreciation, or both. These include, inter alia:
① Leased land using right
(2) the right to use the land that is transferred after holding and preparing for the increment.
③ Leased building
(2) Measurement of investment real estate
For investment real estates with an active real estate transaction market and the Company can obtain market price and otherinformation of same or similar real estates to reasonably estimate the investment real estates' fair value, the Company will use thefair value mode to measure the investment real estates subsequently. Variations in fair value are accounted into the currentgain/loss account.
The fair value of investment real estate is determined with reference to the current market prices of same or similar realestates in active markets; when no such price is available, with reference to the recent transaction prices and consideration offactors including transaction background, date and district to reasonably estimate the fair value; or based on the estimated leasegains and present value of related cash flows.
For investment real estate under construction (including investment real estate under construction for the first time), if thefair value cannot be reliably determined but the expected fair value of the real estate after completion is continuously and reliablyobtained, the investment real estate under construction is measured by cost. When the fair value can be measured reliably or aftercompletion (the earlier one), it is measured at fair value. For an investment real estate whose fair value is proven unable to beobtained continuously and reliably by objective evidence, the real estate will be measured at cost basis until it is disposed and noresidual value remains as assumed.
If the cost model is used for subsequent measurement of investment real estate, depreciation or amortization is calculatedaccording to the straight-line method after the cost of investment real estate minus accumulated impairment and net residual value.See this Chapter X V. Important accounting policies, for the method of accruing asset impairment 24. Impairment of long-termassets in accounting estimates.The types of investment real estate, estimated economic useful life and estimated net residual value rate are determined asfollows:
Type | Service year (year) | Residual rate % | Annual depreciation rate % |
Houses & buildings | 20-50 | 10.00 | 1.80-4.50 |
19. Fixed assets
(1) Recognition conditions
Fixed assets are recognized at the actual cost of acquisition when the following conditions are met: (1) The economicbenefits associated with the fixed assets are likely to flow into the enterprise.
Fixed assets are recognized at the actual cost of acquisition when the following conditions are met: (1) The economicbenefits associated with the fixed assets are likely to flow into the enterprise.
② The cost of the fixed assets can be measured reliably.
Overhaul cost generated by regular examination on fixed assets is recognized as fixed assets costs when there is evidenceproving that it meets fix assets recognition conditions. If not, it will be accounted into the current gain/loss account.
(2) Depreciation method
Type | Depreciation method | Service year | Residual rate | Annual depreciation rate % |
Houses & buildings | Average age | 20-50 years | 10% | 1.8%-4.5% |
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% |
For fixed assets for which depreciation provision is made, the depreciation rate will be determined after the accumulativedepreciation provision amount is deducted.
At end of each fiscal year, verification will be made on the useful life, predicted retained value, and depreciation basis. Theuseful life will be adjusted if the useful life is different from the predicted one; the net residual value will be adjusted if the netresidual value is different from the predicted one.
20. Construction in process
(1) Construction in progress is accounted for by project classification.
(2) Standard and timing for transferring construction in process into fixed assets
The full expenditure incurred on the construction-in-progress project as a fixed asset is recorded as the value of the assetbefore the asset is constructed to the intended usable state. This includes construction costs, the original cost of equipment, othernecessary expenditures incurred in order to enable the construction works to reach the intended usable status and the borrowingcosts incurred for the specific borrowing of the project and the general borrowing expenses incurred before the assets reach theintended usable status. Construction in process will be transferred to fixed assets when it reaches the preset service condition. Thefixed assets that have reached the intended usable state but have not been completed shall be transferred to the fixed assetsaccording to the estimated value according to the estimated value according to the estimated value according to the project budget,cost or actual project cost, etc. The depreciation of the fixed assets shall be accrued according to the Company's fixed assetsdepreciation policy. The original estimated value shall be adjusted according to the actual cost after the completion.XXI. Borrowing expenses
(1) Recognition principles for capitalization of borrowing expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing or production of asset satisfying theconditions of capitalizing, are capitalized and accounted as cost of related asset.
(1) Asset expenditure has occurred;
② The borrowing expense has already occurred;
③ Purchasing or production activity, which is necessary for the asset to reach the useful status, has already started.
Other interest on loans, discounts or premiums and exchange differences are included in the income and loss incurred in thecurrent period.
If the construction or production of assets satisfying the capitalizing conditions is suspended abnormally for over 3 months,capitalizing of borrowing expenses shall be suspended. During the normal suspension period, borrowing expenses will becapitalized continuously.
When the asset satisfying the capitalizing conditions has reached its usable or sellable status, capitalizing of borrowingexpenses shall be terminated.
(2) Calculation of the capitalization amount of borrowing expense
Interest expenses generated by special borrowings less the interests income obtained from the deposit of unused borrowingsor investment gains from temporary investment is capitalized; the capitalization amount for general borrowing is determined basedon the capitalization rate which is the exceeding part of the accumulative assets expense over weighted average of the assetsexpense of the special borrowing/used general borrowing.
If the assets that are constructed or produced under the condition of capitalization occupy the general borrowing, the interestamount to be capitalized in the general borrowing shall be calculated and determined by multiplying the capital rate of the generalborrowing by the weighted average of the asset expenditure of the accumulated assets whose expenditure exceeds that of thespecialized borrowing. The capitalization ratio is the weighted average interest rate of general borrowings.
22. Use right assets
The term "right to use assets" refers to the right of the lessee to use the leased assets during the lease term.
At the beginning of the lease term, the right of use assets are initially measured at cost. This cost includes:
(1) The initial measurement amount of lease liabilities;
(2) For the lease payment paid on or before the beginning of the lease term, if there is lease incentive, the relevant amount oflease incentive enjoyed shall be deducted;
(3) Initial direct expenses incurred by the lessee;
(4) The estimated cost incurred by the lessee for dismantling and removing the leased assets, restoring the site where theleased assets are located or restoring the leased assets to the state agreed in the lease terms. The Company recognizes and measuresthe cost in accordance with the recognition standards and measurement methods of estimated liabilities. See 29. Estimated
liabilities in Chapter X, V. important accounting policies and accounting estimates for details. If the above costs are incurred forthe production of inventories, they will be included in the cost of inventories.
Depreciation of right of use assets is accrued by using the straight-line method. If it can be reasonably determined that theownership of the leased asset will be obtained at the expiration of the lease term, the depreciation rate shall be determinedaccording to the asset category of the right to use and the estimated net residual value rate within the expected remaining servicelife of the leased asset; If it is impossible to reasonably determine that the ownership of the leased asset will be obtained at theexpiration of the lease term, the depreciation rate shall be determined according to the asset category of the right of use within theshorter of the lease term and the remaining service life of the leased asset.
23. Intangible assets
(1) Pricing method, service life and depreciation test
Pricing of intangible assetsRecorded at the actual cost of acquisition.
Amortization of intangible assets
① Useful life of intangible assets with limited useful life
Item | Estimated useful life | Basis |
Land using right | Term | Use right assets |
Trademarks and patents | 10 | Reference to determine the lifetime of a company for which it can bring economic benefits |
Proprietary technology | 10 | Reference to determine the lifetime of a company for which it can bring economic benefits |
Software | 5. 10 years | Reference to determine the lifetime of a company for which it can bring economic benefits |
At the end of each year, the Company will reexamine the useful life and amortization basis of intangible assets with limiteduseful life. Upon review, the service life and amortization methods of intangible assets at the end of the period are not differentfrom those previously estimated.
② Intangible assets which cannot be foreseeable to bring economic benefits to enterprises shall be regarded as intangibleassets whose useful life is uncertain. For intangible assets with uncertain service life, the Company reviews the service life of
intangible assets with uncertain service life at the end of each year. If it is still uncertain after rechecking, it shall conduct animpairment test on the balance sheet date.
③ Amortization of intangible assets
For intangible assets with limited service life, the Company shall determine their service life at the time of acquisition, andshall use the straight line method system to reasonably amortize their service life, and the amortization amount shall be included inthe profit and loss of the current period according to the beneficial items. The specific amortization amount is the amount after thecost is deducted from the estimated residual value. For fixed assets for which depreciation provision is made, the depreciation ratewill be determined after the accumulative depreciation provision amount is deducted. The residual value of an intangible assetwith limited useful life is treated as zero, except where a third party undertakes to purchase the intangible asset at the end of itsuseful life or to obtain expected residual value information based on the active market, which is likely to exist at the end of itsuseful life.Intangible assets with uncertain service life will not be amortized. At the end of each year, the useful life of intangible assetswith uncertain useful life is reviewed, and if there is evidence that the useful life of intangible assets is limited, the useful life isestimated and the system is reasonably amortized within the expected useful life.
(2) Accounting policies for internal R&D expenses
Specific standard for distinguish between research and development stage
① The Company takes the information and related preparatory activities for further development activities as the researchstage, and the intangible assets expenditure in the research stage is included in the current profit and loss period.
② The development activities carried out after the Company has completed the research stage as the development stage.
Specific conditions for capitalization of expenditures in the development phase
Expenditures in the development phase can be recognized as intangible assets only when the following conditions are met:
A. It is technically feasible to complete the intangible asset so that it can be used or sold;
B. Have the intention to complete the intangible asset and use or sell it;
C. The way intangible assets generate economic benefits, including the ability to prove that the products produced by theintangible assets exist in the market or the intangible assets themselves exist in the market, and the intangible assets will be usedinternally, which can prove their usefulness;D. Have sufficient technical, financial and other resource support to complete the development of the intangible asset, andhave the ability to use or sell the intangible asset;
E. The expenditure attributable to the development stage of the intangible asset can be reliably measured.
24. Assets impairment
The Group uses the cost mode to continue measuring the assets impairment to investment real estate, fixed assetsconstruction in progress, intangible assets and goodwill (except for the inventories, investment real estate measured by the fairvalue mode, deferred income tax assets and financial assets). The method is determined as follows:
The Company judges whether there is a sign of impairment to assets on the balance sheet day. If such sign exists, theCompany estimates the recoverable amount and conducts the impairment test. Impairment test is conducted annually for goodwillgenerated by mergers and intangible assets that have not reached the useful condition no matter whether the impairment sign exists.
The recoverable amount is determined by the higher of the net of fair value minus disposal expense and the present value ofthe predicted future cash flow. The Company estimates the recoverable amount on the individual asset item basis; whether it ishard to estimate the recoverable amount on the individual asset item basis, determine the recoverable amount based on the assetgroup that the assets belong to. The assets group is determined by whether the main cash flow generated by the Group isindependent from those generated by other assets or assets groups.
When the recoverable amount of the assets or assets group is lower than its book value, the Company writes down the bookvalue to the recoverable amount, the write-down amount is accounted into the current income account and the assets impairmentprovision is made.
For goodwill impairment test, the book value of goodwill generated by mergers is amortized through reasonable measuressince the purchase day to related asset groups; those cannot be amortized to related assets groups are amortized to relatedcombination of asset groups. The related asset groups or combination of asset groups refer to those that can benefit from thesynergistic effect of mergers and must not exceed to the reporting range determined by the Company.
When the impairment test is conducted, if there is sign of impairment to the asset group or combination of asset groupsrelated to goodwill, first perform impair test for asset group or combination of asset groups without goodwill and calculate therecoverable amount and recognize the related impairment loss. Then conduct impairment test on those with goodwill, compare thebook value with recoverable amount. If the recoverable amount is lower than the book value, recognize the impairment loss of thegoodwill.Once recognized, the asset impairment loss cannot be written back in subsequent accounting period.
25. Long-term amortizable expenses
The long-term deferred expenses shall be used to calculate the expenses that have occurred but should be borne by theCompany in the current and subsequent periods with a amortization period of more than one year. The Company's long-termdeferred expenses are amortized averagely during the benefit period.
26. Contract liabilities
See 15. Contract assets in Chapter X, V. Important Accounting Policies and Accounting Estimates for details.
27. Staff remuneration
(1) Accounting of operational leasing
① Basic salary of employees (salary, bonus, allowance, subsidy)
In the accounting period for which the staff and workers provide services, the Company shall confirm the actual short-termremuneration as liabilities and shall account for the current income and loss, except as required or permitted by other accountingstandards.
② Employee welfare
The employee benefits incurred by the Company shall be included in the current profit and loss or related asset costsaccording to the actual amount incurred. Where the employee's benefit is non-monetary, it shall be measured on the basis of fairvalue.
③ Social insurance premiums and housing accumulation funds such as health insurance premiums, work injury premiums,birth insurance premiums, trade union funds and staff and education funds
The Company pays the medical insurance premiums, work injury insurance premiums, birth insurance premiums, etc. socialinsurance premiums and housing accumulation funds for the staff and workers, as well as the union funds and the staff andworkers education funds according to the regulations, in the accounting period for which the staff and workers provide services,the corresponding salary amount of the staff and workers, and confirms the corresponding liabilities, which are included in thecurrent profit and loss or related asset costs.
④ Short-term paid leave
The Company accumulates the salary of the employees who are absent from work with pay when the employees provideservice, thus increasing their future right of absence with pay. The Company confirms the salary of the employee related to theabsence of non-cumulative salary during the actual absence accounting period.
⑤ Short-term profit share program
If the profit-sharing plan meets the following conditions at the same time, the Company shall confirm the salary payable tothe staff and workers:
A. The legal or presumptive obligation of the enterprise to pay the remuneration of its employees as a result of past matters;
B. The amount of employee compensation obligations due to the profit sharing plan can be reliably estimated.
(2) Accounting of post-employment welfare
The Company's post-employment benefit plan is defined contribution plan. Defined contribution plans include basicendowment insurance, unemployment insurance, etc. During the accounting period when employees provide services for them, theCompany shall recognize the deposit amount calculated according to the defined deposit plan as liabilities and include it in thecurrent profits and losses or related asset costs.
(3) Accounting of dismiss welfare
If the Company provides termination benefits to employees, the employee compensation liabilities arising from thetermination benefits shall be recognized at the earliest of the following two and shall be included in the current profit and loss:
① An enterprise may not unilaterally withdraw the resignation benefits provided for by the dismissal plan or reductionproposal; ②When the enterprise recognizes the costs or expenses related to the reorganization involving the payment ofresignation benefits.
28. Lease liabilities
The lease liabilities are initially measured Company shall according to the present value of the unpaid lease payments at thebeginning of the lease term. The lease payment includes the following five items:
(1) Fixed payment amount and substantial fixed payment amount. If there is lease incentive, the relevant amount of leaseincentive shall be deducted;
(2) Variable lease payments depending on index or ratio;
(3) The exercise price of the purchase option, provided that the lessee reasonably determines that the option will be exercised;
(4) The amount to be paid for exercising the option to terminate the lease, provided that the lease term reflects that the lesseewill exercise the option to terminate the lease;
(5) The amount expected to be paid according to the residual value of the guarantee provided by the lessee.
When calculating the present value of lease payments, the implicit interest rate of the lease is used as the discount rate. Ifthe implicit interest rate of the lease cannot be determined, the incremental borrowing interest rate of the company is used as thediscount rate. The difference between the lease payment amount and its present value is regarded as unrecognized financingexpenses, and the interest expenses are recognized according to the discount rate of the present value of the lease payment amountduring each period of the lease term and included in the current profit and loss. The amount of variable lease payments notincluded in the measurement of lease liabilities shall be included in the current profit and loss when actually incurred.After the beginning date of the lease term, when the actual fixed payment amount changes, the expected payable amount ofthe guaranteed residual value changes, the index or ratio used to determine the lease payment amount changes, the evaluationresults or actual exercise of the purchase option, renewal option or termination option changes, the Company remeasures the leaseliability according to the present value of the changed lease payment amount, And adjust the book value of the right to use assetsaccordingly.
29. Anticipated liabilities
(1) Recognition standards of anticipated liabilities
When responsibilities occurred in connection to contingent issues, and all of the following conditions are satisfied, they arerecognized as expectable liability in the balance sheet:
① This responsibility is a current responsibility undertaken by the Company;
② Execution of this responsibility may cause financial benefit outflow from the Company;
③ Amount of the liability can be reliably measured.
(2) Measurement of anticipated liabilities
Expected liabilities are initially measured at the best estimation on the expenses to exercise the current responsibility, andwith considerations to the relative risks, uncertainty, and periodic value of currency. On each balance sheet date, review the bookvalue of the estimated liabilities. Where there is conclusive evidence that the book value does not reflect the current best estimate,the book value is adjusted to the current best estimate.
30. Revenue
The Company needs to comply with the disclosure requirements of the decoration and decoration industry in the Guidelinesfor the Self-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.
(1) General principles
Income is the total inflow of economic benefits formed in the daily activities of the Company, which will lead to theincrease of shareholders' equity and has nothing to do with the capital invested by shareholders.
The Company has fulfilled the performance obligation in the contract, that is, the revenue is recognized when the customerobtains the control right of relevant goods. To obtain the control right of the relevant commodity means to be able to dominate theuse of the commodity and obtain almost all the economic benefits from it.
If there are two or more performance obligations in the contract, the Company will allocate the transaction price to eachsingle performance obligation according to the relative proportion of the separate selling price of the goods or services promisedby each single performance obligation on the start date of the contract, and measure the income according to the transaction priceallocated to each single performance obligation.
The transaction price refers to the amount of consideration that the Company is expected to be entitled to receive due to thetransfer of goods or services to customers, excluding the amount collected on behalf of a third party. When determining thecontract transaction price, if there is a variable consideration, the Company shall determine the best estimate of the variableconsideration according to the expected value or the most likely amount, and include it in the transaction price with the amount not
exceeding the accumulated recognized income when the relevant uncertainty is eliminated, which is most likely not to have asignificant reversal. If there is a significant financing component in the contract, the Company will determine the transaction priceaccording to the amount payable in cash when the customer obtains the control right of the commodity. The difference betweenthe transaction price and the contract consideration will be amortised by the effective interest method during the contract period. Ifthe interval between the control right transfer and the customer's payment is less than one year, the Company will not consider thefinancing component Points.If one of the following conditions is met, the performance obligation shall be performed within a certain period of time;otherwise, the performance obligation shall be performed at a certain point of time:
① When the customer performs the contract in the Company, he obtains and consumes the economic benefits brought bythe Company's performance;
② Customers can control the goods under construction during the performance of the contract;
③ The goods produced by the Company in the process of performance have irreplaceable uses, and the Company has theright to collect money for the performance part that has been completed so far during the whole contract period.
For the performance obligations performed within a certain period of time, the Company shall recognize the revenueaccording to the performance progress within that period, except that the performance progress cannot be reasonably determined.The Company determines the performance schedule of providing services according to the input method. When the progress ofperformance cannot be reasonably determined, if the cost incurred by the Company is expected to be compensated, the revenueshall be recognized according to the amount of cost incurred until the progress of performance can be reasonably determined.
For the performance obligation performed at a certain time point, the Company recognizes the revenue at the time pointwhen the customer obtains the control right of relevant goods. In determining whether a customer has acquired control of goods orservices, the Company will consider the following signs:
① The Company has the right to receive payment for the goods or services, that is, the customer has the obligation to payfor the goods;
② The Company has transferred the legal ownership of the goods to the customer, that is, the customer has the legalownership of the goods;
③ The Company has transferred the goods in kind to the customer, that is, the customer has possessed the goods in kind;
④ The Company has transferred the main risks and rewards of the ownership of the goods to the customer, that is, thecustomer has obtained the main risks and rewards of the ownership of the goods;
⑤ The product has been accepted by the customer.
Sales return clause
For the sales with sales return clauses, when the customer obtains the control right of the relevant goods, the Company shallrecognize the revenue according to the amount of consideration it is entitled to obtain due to the transfer of the goods to thecustomer, and recognize the amount expected to be returned due to the sales return as the estimated liability; at the same time, theCompany shall deduct the estimated cost of recovering the goods according to the book value of the expected returned goods at thetime of transfer( The balance after deducting the value of the returned goods is recognized as an asset, that is, the cost of returnreceivable, which is carried forward by deducting the net cost of the above assets according to the book value of the transferredgoods at the time of transfer. On each balance sheet date, the Company re estimates the return of future sales and re measures theabove assets and liabilities.
Warranty obligations
According to the contract and legal provisions, the Company provides quality assurance for the goods sold and the projectsconstructed. For the guarantee quality assurance to ensure that the goods sold meet the established standards, the Companyconducts accounting treatment in accordance with the accounting standards for Business Enterprises No. 13 - contingencies. Forthe service quality assurance which provides a separate service in addition to guaranteeing that the goods sold meet the establishedstandards, the Company takes it as a single performance obligation, allocates part of the transaction price to the service qualityassurance according to the relative proportion of the separate selling price of the goods and service quality assurance, andrecognizes the revenue when the customer obtains the service control right. When evaluating whether the quality assuranceprovides a separate service in addition to assuring customers that the goods sold meet the established standards, the Companyconsiders whether the quality assurance is a statutory requirement, the quality assurance period, and the nature of the Company'scommitment to perform the task.
Customer consideration payable
If there is consideration payable to the customer in the contract, unless the consideration is to obtain other clearlydistinguishable goods or services from the customer, the Company will offset the transaction price with the consideration payable,and offset the current income at the later time of confirming the relevant income or paying (or promising to pay) the customer'sconsideration.Contractual rights not exercised by customersIf the Company advances sales of goods or services to customers, the amount shall be recognized as liabilities first, and thenconverted into income when relevant performance obligations are fulfilled. When the Company does not need to return theadvance payment and the customer may give up all or part of the contract rights, if the Company expects to have the right to obtainthe amount related to the contract rights given up by the customer, the above amount shall be recognized as income in proportionaccording to the mode of the customer exercising the contract rights; otherwise, the Company only has the very low possibility ofthe customer requiring to perform the remaining performance obligations The relevant balance of the above liabilities is convertedinto income.Contract changeWhen the project contract between the Company and the customer is changed:
① If the contract change increases the clearly distinguishable construction service and contract price, and the new contractprice reflects the separate price of the new construction service, the Company will treat the contract change as a separate contractfor accounting;
② If the contract change does not belong to the above-mentioned situation (1), and there is a clear distinction between thetransferred construction service and the non transferred construction service on the date of contract change, the Company willregard it as the termination of the original contract, and at the same time, combine the non performance part of the originalcontract and the contract change part into a new contract for accounting treatment;
③ If the contract change does not belong to the above situation (1), and there is no clear distinction between the transferredconstruction services and the non transferred construction services on the date of contract change, the Company will take thecontract change part as an integral part of the original contract for accounting treatment, and the resulting impact on the recognizedincome will be adjusted to the current income on the date of contract change.
(2) Specific methods
The specific methods of revenue recognition of the Company are as follows:
① Commodity sales contract
The commodity sales contract between the company and the customer includes the performance obligation of transferringcurtain wall materials, screen door materials, electric energy, etc., which belongs to the performance obligation at a certain timepoint.Revenue from domestic sales of products is recognized at the time when the customer obtains the right of control of thegoods on the basis of comprehensive consideration of the following factors: the Ccompany has delivered the products to thecustomer according to the contract, the customer has accepted the goods, the payment for goods has been recovered or the receipthas been obtained, and the relevant economic benefits are likely to flow in, the main risks and rewards of the ownership of thegoods have been transferred, the legal ownership has been transferred;The following conditions should be met for the recognition of export product revenue: the Company has declared theproduct according to the contract, obtained the bill of lading, collected the payment for goods or obtained the receipt certificate,and the relevant economic benefits are likely to flow in, the main risks and rewards of the ownership of goods have beentransferred, and the legal ownership of goods has been transferred.
② Service contract
The service contract between the Company and its customers includes the performance obligations of metro platform screendoor operation maintenance, curtain wall maintenance and property services. As the Company's performance at the same time, thecustomers obtain and consume the economic benefits brought by the Company's performance, the Company takes it as theperformance obligation within a certain period of time and allocates it equally during the service provision period.
③ Engineering contract
The project contract between the Company and the customer includes the performance obligations of curtain wall projectand metro platform screen door project construction. As the customer can control the goods under construction in the process ofthe Company's performance, the Company takes them as the performance obligations within a certain period of time, andrecognizes the income according to the performance progress, except that the performance progress cannot be reasonably
determined. The Company determines the performance schedule of providing construction services according to the input method.The performance schedule shall be determined according to the proportion of the actual contract cost to the estimated total contractcost.
④ Real estate sales contract
The income of the Company's real estate development business is recognized when the control of the property istransferred to the customer. Based on the terms of the sales contract and the legal provisions applicable to the contract, the controlof the property can be transferred within a certain period of time or at a certain point in time. Only if the goods produced by theCompany during the performance of the contract have irreplaceable uses, and the Company has the right to collect payment for thecumulative performance part that has been completed during the entire contract period, the performance obligation has beencompleted during the contract period. The progress is recognized as revenue within a period of time, and the progress of thecompleted performance obligations is determined in accordance with the ratio of the contract costs actually incurred to completethe performance obligations to the estimated total cost of the contract. Otherwise, the income is recognized when the customerobtains the physical ownership or legal ownership of the completed property and the Company has obtained the current right ofcollection and is likely to recover the consideration. When confirming the contract transaction price, if the financing component issignificant, the Company will adjust the contract commitment consideration according to the financing component of the contract.
(3) Differences in revenue recognition accounting policies caused by different business models of similar businessesThere is no difference in revenue recognition due to the adoption of different accounting policies for similar businesses.
31. Government subsidy
(1) Government subsidy
Government subsidies are recognized when the following conditions are met:
① Requirements attached to government subsidies;
② The Company can receive government subsidies.
(2) Government subsidy
When a government subsidy is monetary capital, it is measured at the received or receivable amount. None monetary capitalare measured at fair value; if no reliable fair value available, recognized at RMB1.
(3) Recognition of government subsidies
① Assets-related
Government subsidies related to assets are obtained by the Company to purchase, build or formulate in other manners long-term assets; or subsidies related to benefits. If the asset-related government subsidy is recognized as deferred gain, should berecorded in gain and loss in the service life. Government subsidy measured at the nominal amount is accounted into currentincome account. If the relevant assets are sold, transferred, scrapped or damaged before the end of their useful life, the unallocatedrelevant deferred income balance shall be transferred to the profit and loss of the current period of disposition of the assets.
Gain-related government subsidy should be accounted as follows:
The Company divides government subsidies into assets-related and earnings-related government subsidies. Gain-relatedgovernment subsidy should be accounted as follows:
Subsidy that will be used to compensate related future costs or losses should be recognized as deferred gain and recorded inthe gain and loss of the current report and offset related cost;
Subsidy that is used to compensate existing cost or loss should be recorded in the gain and loss of the current period oroffset related cost.
For government subsidies that include both asset-related and income-related parts, separate different parts for accountingtreatment; It is difficult to distinguish between the overall classification of government subsidies related to benefits.
Government subsidy related to routine operations should be recorded in other gains or offset related cost. Governmentsubsidy not related to routine operations should be recorded in non-operating income or expense.
③ Policy preferential loan discount
The policy-based preferential loan obtained has interest subsidy. If the government allocates the interest-subsidy funds tothe lending bank, the loan amount actually received will be used as the entry value of the loan, and the borrowing cost will becalculated based on the loan principal and policy-based preferential interest rate.If the government allocates the interest-bearing funds directly to the Group, discount interest will offset the borrowing costs.
④ Government subsidy refund
When a confirmed government subsidy needs to be returned, the book value of the asset is adjusted against the book valueof the relevant asset at initial recognition. If there is a related deferred income balance, the book balance of the related deferredincome is written off and the excess is credited to the current profit or loss; In other cases, it is directly included in the currentprofit and loss.
32. Differed income tax assets and differed income tax liabilities
The Company uses the temporary difference between the book value of the assets and liabilities on the balance sheet dayand the tax base and the liabilities method to recognize the deferred income tax. 26. Deferred income tax assets and deferredincome tax liabilities
(1) Deferred income tax assets
For deductible temporary discrepancies, deductible losses and tax offsets that can be carried forward for future years, theimpact on income tax is calculated at the estimated income tax rate for the transfer-back period and the impact is recognized asdeferred income tax assets, provided that the Company is likely to obtain future taxable income for deductible temporarydiscrepancies, deductible losses and tax offsets.
At the same time, the impact on income tax of deductible temporary discrepancies resulting from the initial recognition ofassets or liabilities in transactions or matters with the following characteristics is inconclusive as deferred income tax assets:
A. The transaction is not a business combination;
B. the transaction is not a merger and the transaction does not affect the accounting profit or taxable proceeds;
In the event of temporary discrepancy of deductible investment related to subsidiaries, joint ventures and joint ventures, andmeeting the following two conditions, the amount of impact (talent) on income tax shall be deemed as deferred income tax assets:
A. Temporary discrepancies are likely to be reversed in the foreseeable future;
B. In the future, it is likely to obtain taxable income that can be used to offset the deductible temporary differences;
On the balance sheet date, if there is conclusive evidence that sufficient taxable income is likely to be obtained in the futureto offset the deductible temporary differences, the deferred income tax assets that have not been recognized in the previous periodare recognized.
On the balance sheet day, the Company re-examines the book value of the deferred income tax assets. If it is unlikely tohave adequate taxable proceeds to reduce the benefits of the deferred income tax assets, less the deferred income tax assets' bookvalue. When there is adequate taxable proceeds, the lessened amount will be reversed.
(2) Deferred income tax assets
All provisional differences in taxable income of the Company shall be measured on the basis of the estimated income taxrate for the period of transfer-back and shall be recognized as deferred income tax liabilities, except that:
At the same time, the impact on income tax of deductible temporary discrepancies resulting the initial recognition of assetsor liabilities in transactions or matters with the following characteristics is inconclusive as deferred income tax Liabilities:
A. Initial recognition of goodwill;
B. Initial recognition of goodwill, or of assets or liabilities generated in transactions with the following features: thetransaction is not a merger and the transaction does not affect the accounting profit or taxable proceeds;
② For the taxable temporary differences related to the investment of subsidiaries and associated enterprises, the impact onincome tax is generally recognized as deferred income tax liabilities, except that the following two conditions are met at the sametime:
A. The Company is able to control the time of temporary discrepancy transfers;
B Temporary discrepancies are likely to be reversed in the foreseeable future;
(3) Deferred income tax assets
(1) Deferred income tax liabilities or assets associated with enterprise consolidation
Temporary difference of taxable tax or deductible temporary difference generated by enterprise merger under non-samecontrol. When deferred income tax liability or deferred income tax asset is recognized, related deferred income tax expense (orincome) is usually adjusted as recognized goodwill in enterprise merger.
② Amount of shares paid and accounted as owners' equity
Except for the adjustment goodwill generated by mergers or deferred income tax related to transactions or events directlyaccounted into the owners' equity, income tax is accounted as income tax expense into the current gain/loss account. The impact oftemporary differences on income tax is included in the transactions or events of owner's equity, including: other comprehensiveincome formed by changes in the fair value of other creditor's rights investment, retroactive adjustment method for changes inaccounting policies or retroactive restatement method for correction of previous (important) accounting errors, adjustment ofopening retained earnings, and mixed financial instruments containing both liability and equity components are included inowner's equity at initial recognition.
③ Compensation for losses and tax deductions
A. Compensable losses and tax deductions from the Company's own operations
Deductible losses refer to the losses calculated and determined in accordance with the provisions of the tax law that areallowed to be made up with the taxable income of subsequent years. The uncovered losses (deductible losses) and tax deductionsthat can be carried forward in accordance with the tax law are treated as deductible temporary differences. When it is expected thatsufficient taxable income is likely to be obtained in the future period when it is expected to be available to make up for losses ortax deductions, the corresponding deferred income tax assets are recognized within the limit of the taxable income that is likely tobe obtained, while reducing the current period Income tax expense in the income statement.
B. Compensable uncovered losses of the merged company due to business merger
In a business combination, if the Company obtains the deductible temporary difference of the purchased party and does notmeet the deferred income tax asset recognition conditions on the purchase date, it shall not be recognized. Within 12 months afterthe purchase date, if new or further information is obtained indicating that the relevant conditions on the purchase date alreadyexist, and the economic benefits brought about by the temporary difference are expected to be deducted on the purchase date,confirm the relevant delivery. Deferred income tax assets, while reducing goodwill, if the goodwill is not enough to offset, thedifference is recognized as the current profit and loss; except for the above circumstances, the deferred tax assets related to thebusiness combination are recognized and included in the current profit and loss.
④Temporary difference caused by merger offset
If there is a temporary difference between the book value of assets and liabilities in the consolidated balance sheet and thetaxable basis of the taxpayer due to the offset of the unrealized internal sales gain or loss, the deferred income tax asset or thedeferred income tax liability is confirmed in the consolidated balance sheet, and the income tax expense in the consolidated profitstatement is adjusted, with the exception of the deferred income tax related to the transaction or event directly included in theowner's equity and the merger of the enterprise.
⑤ Share payment settled by equity
If the tax law provides for allowable pre-tax deduction of expenses related to share payment, within the period for which thecost and expense are recognized in accordance with the accounting standards, the Company shall calculate the tax basis andtemporary discrepancy based on the estimated pre-tax deduction amount at the end of the accounting period and confirm therelevant deferred income tax if it meets the conditions for confirmation. Of these, the amount that can be deducted before tax in thefuture exceeds the cost related to share payment recognized in accordance with the accounting standards, and the excess incometax shall be directly included in the owner's equity.
33. Leasing
(1) Identification of lease
On the commencement date of the contract, the company evaluates whether the contract is a lease or includes a lease. If oneparty in the contract transfers the right to control the use of one or more identified assets within a certain period in exchange forconsideration, the contract is a lease or includes a lease. In order to determine whether the contract transfers the right to control theuse of the identified assets within a certain period, the company evaluates whether the customers in the contract have the right to
obtain almost all the economic benefits arising from the use of the identified assets during the use period, and have the right todominate the use of the identified assets during the use period.
(2) Separate identification of lease
If the contract includes multiple separate leases at the same time, the company will split the contract and conduct accountingtreatment for each separate lease. If the following conditions are met at the same time, the right to use the identified assetconstitutes a separate lease in the contract: ① the lessee can profit from using the asset alone or together with other easilyavailable resources; ② The asset is not highly dependent or highly related to other assets in the contract.
(3) Accounting treatment method of the Company as lessee
On the beginning date of the lease term, the Company recognizes the lease with a lease term of no more than 12 months andexcluding the purchase option as a short-term lease; When a single leased asset is a brand-new asset, the lease with lower value isrecognized as a low value asset lease. If the Company sublets or expects to sublet the leased assets, the original lease is notrecognized as a low value asset lease.
For all short-term leases and low value asset leases, the Company will record the lease payment amount into the relevantasset cost or current profit and loss according to the straight-line method (or other systematic and reasonable methods) in eachperiod of the lease term.
In addition to the above short-term leases and low value asset leases with simplified treatment, the Company recognizes theright to use assets and lease liabilities for the lease on the beginning date of the lease term.
① Use right assets
The term "right to use assets" refers to the right of the lessee to use the leased assets during the lease term.
At the beginning of the lease term, the right of use assets are initially measured at cost. This cost includes:
? The initial measurement amount of lease liabilities;? For the lease payment paid on or before the beginning of the lease term, if there is lease incentive, the relevant amount of
lease incentive enjoyed shall be deducted;? Initial direct expenses incurred by the lessee;
? The estimated cost incurred by the lessee for dismantling and removing the leased assets, restoring the site where theleased assets are located or restoring the leased assets to the state agreed in the lease terms. The Company recognizes andmeasures the cost according to the recognition standard and measurement method of estimated liabilities. If the abovecosts are incurred for the production of inventories, they will be included in the cost of inventories.Depreciation of right of use assets is accrued by using the straight-line method. If it can be reasonably determined that theownership of the leased asset will be obtained at the expiration of the lease term, the depreciation rate shall be determinedaccording to the asset category of the right to use and the estimated net residual value rate within the expected remaining servicelife of the leased asset; If it is impossible to reasonably determine that the ownership of the leased asset will be obtained at theexpiration of the lease term, the depreciation rate shall be determined according to the asset category of the right of use within theshorter of the lease term and the remaining service life of the leased asset.
② Lease liabilities
The lease liabilities are initially measured Company shall according to the present value of the unpaid lease payments at thebeginning of the lease term. The lease payment includes the following five items:
? Fixed payment amount and substantial fixed payment amount. If there is lease incentive, the relevant amount of leaseincentive shall be deducted;
? Variable lease payments depending on index or ratio;? The exercise price of the purchase option, provided that the lessee reasonably determines that the option will beexercised;
? The amount to be paid for exercising the option to terminate the lease, provided that the lease term reflects that the lesseewill exercise the option to terminate the lease;? The amount expected to be paid according to the residual value of the guarantee provided by the lessee.
When calculating the present value of lease payments, the implicit interest rate of the lease is used as the discount rate. Ifthe implicit interest rate of the lease cannot be determined, the incremental borrowing interest rate of the company is used as thediscount rate. The difference between the lease payment amount and its present value is regarded as unrecognized financingexpenses, and the interest expenses are recognized according to the discount rate of the present value of the lease payment amountduring each period of the lease term and included in the current profit and loss. The amount of variable lease payments notincluded in the measurement of lease liabilities shall be included in the current profit and loss when actually incurred.
After the beginning date of the lease term, when the actual fixed payment amount changes, the expected payable amount ofthe guaranteed residual value changes, the index or ratio used to determine the lease payment amount changes, the evaluationresults or actual exercise of the purchase option, renewal option or termination option changes, the Company remeasures the lease
liability according to the present value of the changed lease payment amount, And adjust the book value of the right to use assetsaccordingly.
(4) Accounting treatment method of the Company as lessor
On the lease commencement date, the Company classifies leases that have substantially transferred almost all the risks andrewards related to the ownership of the leased assets as financial leases, and all other leases are operating leases.
① Operating lease
During each period of the lease term, the Company recognizes the lease receipts as rental income according to the straight-line method (or other systematic and reasonable methods), and the initial direct expenses incurred are capitalized, amortized on thesame basis as the recognition of rental income, and included in the current profit and loss by stages. The variable lease paymentsobtained by the Company related to operating leases that are not included in the lease receipts are included in the current profitsand losses when actually incurred.
② Finance lease
On the lease beginning date, the Company recognizes the financial lease receivables according to the net amount of thelease investment (the sum of the unsecured residual value and the present value of the lease receipts not received on the leasebeginning date discounted according to the lease embedded interest rate), and terminates the recognition of the financial leaseassets. During each period of the lease term, the Company calculates and recognizes the interest income according to the interestrate embedded in the lease.
The amount of variable lease payments obtained by the Company that are not included in the measurement of net leaseinvestment shall be included in the current profit and loss when actually incurred.
(5) Accounting treatment of lease change
① Change of lease as a separate lease
If the lease changes and meets the following conditions at the same time, the Company will treat the lease change as aseparate lease for accounting: a. the lease change expands the lease scope by increasing the use right of one or more leased assets;
B. The increased consideration is equivalent to the amount adjusted according to the conditions of the contract at the separate pricefor most of the expansion of the lease scope.
② The lease change is not treated as a separate lease
A. The Company as lesseeOn the effective date of the lease change, the Company reconfirmed the lease term and discounted the changed leasepayment at the revised discount rate to re-measure the lease liability. When calculating the present value of the lease payment afterthe change, the implicit interest rate of the lease during the remaining lease period shall be used as the discount rate; If it isimpossible to determine the implicit interest rate of the lease for the remaining lease period, the incremental loan interest rate onthe effective date of the lease change shall be used as the discount rate.The impact of the above lease liability adjustment shall be accounted for according to the following circumstances:
? If the lease scope is reduced or the lease term is shortened due to the lease change, the book value of the right to useassets shall be reduced, and the relevant gains or losses of partial or complete termination of the lease shall be includedin the current profits and losses;? For other lease changes, the book value of the right to use assets shall be adjusted accordingly.
The Company as leasorIf the operating lease is changed, the Company will treat it as a new lease for accounting from the effective date of thechange, and the amount of lease receipts received in advance or receivable related to the lease before the change is regarded as theamount of new lease receipts.If the change of financial lease is not accounted for as a separate lease, the Company will deal with the changed lease underthe following circumstances: if the change of lease takes effect on the lease commencement date and the lease will be classified asan operating lease, the Company will account for it as a new lease from the effective date of lease change, and take the net leaseinvestment before the effective date of lease change as the book value of leased assets; If the lease change takes effect on the leasecommencement date, the lease will be classified as a financial lease, and the Company will conduct accounting treatment inaccordance with the provisions on modifying or renegotiating the contract.
(6) Sale and lease-back
The Company assesses and determines whether the asset transfer in the sale and leaseback transaction is a sale inaccordance with the provisions of 30. Income in Chapter X, V, Important accounting policies and accounting estimates.
① The Company as seller (lessee)
If the asset transfer in the sale and leaseback transaction does not belong to sales, the Company will continue to recognizethe transferred assets, recognize a financial liability equal to the transfer income, and conduct accounting treatment for thefinancial liability in accordance with 9。 Financial instruments in Chapter X, V, Important accounting policies and accountingestimates. If the asset transfer belongs to sales, the Company measures the right to use assets formed by sale and leasebackaccording to the part of the book value of the original assets related to the right to use obtained by leaseback, and only recognizesthe relevant gains or losses on the rights transferred to the lessor.
② The Company as buyer (lessor)
If the asset transfer in the sale and leaseback transaction does not belong to sales, the company does not recognize the transferredasset, but recognizes a financial asset equal to the transfer income, and carries out accounting treatment on the financial asset inaccordance with 9. Financial instruments in Chapter X, V. Important accounting policies and accounting estimates. If the assettransfer belongs to sales, the Company shall conduct accounting treatment for asset purchase and asset lease in accordance withother applicable accounting standards for business enterprises.
34. Other significant accounting policies and estimates
(1) Measurement of Fair Value
Fair value refers to the amount of asset exchange or liabilities settlement by both transaction parties familiar with thesituation in a fair deal on a voluntary basis.
The Company measures the fair value of related assets or liabilities at the prices in the main market. If there is no majormarket, the Company measures the fair value of the relevant assets or liabilities at the most favorable market prices. The Groupuses assumptions that market participants use to maximize their economic benefits when pricing the asset or liability.
The main market refers to the market with the highest transaction volume and activity of the related assets or liabilities. Themost favorable market means the market that can sell the related assets at the highest amount or transfer the related liabilities at thelowest amount after considering the transaction cost and transportation cost.
For financial assets or liabilities in an active market, The Company determines their fair value based on quotations in theactive market. If there is no active market, the Company uses evaluation techniques to determine the fair value.For the measurement of non-financial assets at fair value, the ability of market participants to use the assets for optimalpurposes to generate economic benefits, or the ability to sell the assets to other market participants that can be used for optimalpurposes to generate economic benefits.
① Valuation technology
The Company adopts valuation techniques that are applicable in the current period and are supported by sufficient data andother information. The valuation techniques used mainly include market method, income method and cost method. The Companyuses a method consistent with one or more of the valuation techniques to measure fair value. If multiple valuation techniques areused to measure fair value, the reasonableness of each valuation result shall be considered, and the fair value shall be selected asthe most representative of fair value under the current circumstances. The amount of value is regarded as fair value.
The The Company equipment are applicable in the current circumstances and have sufficient available data and otherinformation to support the use of the relevant observable input values prioritized. Unobservable input values are used only whenthe observable input value cannot be obtained or is not feasible. Observable input values are input values that can be obtained frommarket data. The Group uses assumptions that market participants use to maximize their economic benefits when pricing the assetor liability. Non-observable input values are input values that cannot be obtained from market data. The input value is obtainedbased on the best information available on assumptions used by market participants in pricing the relevant asset or liability.
②Fair value hierarchy
This company divides the input value used in fair value measurement into three levels, and first uses the first level inputvalue, then uses the second level input value, and finally uses the third level input value. First level: quotation of same assets orliabilities in an active market (unadjusted) The second level input value is a directly or indirectly observable input value of theasset or liability in addition to the first level input value. The input value of the third level is the unobservable input value of therelated asset or liability.
(2) Accounting of hedging
(2.1) Classification of inventories
The Company's hedge is a cash flow hedge.Cash flow hedging refers to the hedging of cash flow risk. The change in cash flow is derived from specific risks associatedwith recognized assets or liabilities, expected transactions that are likely to occur, or with respect to the components of the above-mentioned project and will affect the profits and losses of the enterprise.
(2.2) Hedging tools and hedged projectsHedging means a financial instrument designated by the Company for the purpose of hedging, whose fair value or cash flowvariation is expected to offset the fair value or cash flow variation of the hedged item, including:
① Financial liabilities measured at fair value with variations accounted into current income account Check-out options canonly be used as a hedging tool if the option is hedged, including those embedded in a hybrid contract. Derivatives embedded in ahybrid contract but not split cannot be used as separate hedging tools.
② Non-derivative financial assets or non-derivative financial liabilities that are measured at fair value and whose changesare included in the current profit and loss, but designated as fair value and whose changes are included in the current profit andloss, and their own credit risk changes caused by changes in fair value except for financial liabilities included in othercomprehensive income.
Own equity instruments are not financial assets or financial liabilities and cannot be used as hedging instruments.
A hedged item refers to an item that exposes the Company to the risk of changes in fair value or cash flow and is designatedas the hedged object and can be reliably measured. The Company designates the following individual projects, project portfolios ortheir components as hedged projects:
① Confirmed assets or liabilities.
② Confirmed commitments that have not yet been confirmed. Confirmed commitment refers to a legally binding agreementto exchange a specific amount of resources at an agreed price on a specific date or period in the future.
③ Expected transactions that are likely to occur. Anticipated transactions refer to transactions that have not yet beencommitted but are expected to occur.
④ Net investment in overseas operations.
The above-mentioned project components refer to the parts that are less than the overall fair value or cash flow changes ofthe project. The Company designates the following project components or their combinations as hedged items:
① The part of the change in fair value or cash flow (risk component) that is only caused by one or more specific risks in theoverall fair value or cash flow changes of the project. According to the assessment in a specific market environment, the riskcomponent should be able to be individually identified and reliably measured. The risk component also includes the part where thefair value or cash flow of the hedged item changes only above or below a specific price or other variables.
② One or more selected contractual cash flows.
③ The component of the nominal amount of the project, that is, the specific part of the whole amount or quantity of theproject, may be a certain proportion of the whole project, or may be a certain level of the whole project. If a certain level includesearly repayment rights and the fair value of the early repayment rights is affected by changes in the risk of the hedge, the levelshall not be designated as the hedged item of the fair value hedge, but in the measurement of the hedged item except when the fairvalue has included the influence of the prepayment right.
(2.3) Evaluation of hedging relationship
When the hedging relationship is initially specified, the Group officially specifies the related hedging relationships withofficial documents recording the hedging relationships, risk management targets and hedging strategies. This document sets outthe hedging tools, hedged items, the nature of hedged risks, and the Company's assessment of hedged effectiveness. Hedgingmeans a financial instrument designated by the Company for the purpose of hedging, whose fair value or cash flow variation isoffset the fair value or cash flow variation of the hedged item, including: Such hedges are continuously evaluated on and after theinitial specified date to meet the requirements for hedging validity.
If the hedging instrument has expired, been sold, the contract is terminated or exercised (but the extension or replacement aspart of the hedging strategy is not treated as expired or contract termination), or the risk management objective changes, resultingin hedging The relationship no longer meets the risk management objectives, or the economic relationship between the hedgeditem and the hedging instrument no longer exists, or the impact of credit risk begins to dominate in the value changes caused by
the economic relationship between the hedged item and the hedging instrument, or when the hedge no longer meets the otherconditions of the hedge accounting method, the Company terminates the use of hedge accounting.
If the hedging relationship no longer meets the requirements for hedging effectiveness due to the hedging ratio, but the riskmanagement objective of the designated hedging relationship has not changed, the Company shall rebalance the hedgingrelationship.(2.4) Revenue the of revenue recognition and measurementIf the conditions for applying hedge accounting method are met, it shall be handled according to the following methods:
Cash flow hedging
The part of hedging tool gains or losses that is valid for hedging is recognized as other comprehensive income as a cashflow hedging reserve, and the part that is invalid for hedging (that is, other gains or losses after deducting other comprehensiveincome), are counted Into the current profit and loss. The amount of cash flow hedging reserve is determined according to thelower of the absolute amounts of the following two items: ①accumulated gains or losses of hedging instruments since the hedging.The amount in the effective arbitrage is recognized by the accumulative gains or losses from the starting of arbitrage andaccumulative changes to the current value of future forecast cash flows from the start of arbitrage.If the expected transaction of the hedged asset is subsequently recognized as a non-financial asset or non-financial liability, orif the expected transaction of the non-financial asset or non-financial liability forms a defined commitment to the applicable fairvalue hedge accounting, the amount of the cash flow hedge reserve originally recognized in the other consolidated income istransferred out to account for the initial recognized amount of the asset or liability. For the remaining cash flow hedges, during thesame period when the expected cash flow to be hedged affects the profit and loss, if the expected sales occur, the cash flow hedgereserve recognized in other comprehensive income is transferred out and included in the current profit and loss.
(3) Repurchase of the Company's shares
(3.1) In the event of a reduction in the Company's share capital as approved by legal procedure, the Company shall reducethe share capital by the total amount of the written-off shares, adjust the owner's equity by the difference between the price paid bythe purchased stocks (including transaction costs) and the total amount of the written-off shares, offset the capital reserve (share
capital premium), surplus reserve and undistributed profits in turn; A portion of a capital reserve (share capital premium) that isless than the total face value and less than the total face value.(3.2) The total expenditure of the repurchase shares of the Company, which is managed as an inventory share before theyare cancelled or transferred, is converted to the cost of the inventory shares.(3.3) Increase in the capital reserve (capital premium) at the time of transfer of an inventory unit, the portion of the transferincome above the cost of the inventory unit; Lower than the inventory stock cost, the capital reserve (share capital premium),surplus reserve, undistributed profits in turn.
(4) Significant accounting judgment and estimate
The Company continuously reviews significant accounting judgment and estimate adopted for the reasonable forecast offuture events based on its historical experience and other factors. Significant accounting judgment and assumptions that may leadto major adjustment of the book value of assets and liabilities in the next accounting year are listed as follows:
Classification of financial assets
The major judgements involved in the classification of financial assets include the analysis of business model and contractcash flow characteristics.
The company determines the business mode of managing financial assets at the level of financial asset portfolio, taking intoaccount such factors as how to evaluate and report financial asset performance to key managers, the risks that affect financial assetperformance and how to manage it, and how to obtain remuneration for related business managers.
When the company assesses whether the contractual cash flow of financial assets is consistent with the basic borrowingarrangement, there are the following main judgments: whether the principal may change due to early repayment and other reasonsduring the duration of the period or the amount of change; whether the interest Including the time value of money, credit risk,other basic borrowing risks, and consideration of costs and profits. For example, does the amount paid in advance reflect only theunpaid principal and the interest based on the unpaid principal, as well as the reasonable compensation paid for early terminationof the contract.
Measurement of expected credit losses of accounts receivable
The Company calculates the expected credit loss of accounts receivable through the risk exposure of accounts receivabledefault and the expected credit loss rate, and determines the expected credit loss rate based on the default probability and thedefault loss rate. When determining the expected credit loss rate, the Company uses internal historical credit loss experience andother data, combined with current conditions and forward-looking information to adjust the historical data. When consideringforward-looking information, the indicators used by the Company include the risks of economic downturn, changes in the externalmarket environment, technological environment, and customer conditions. The Company regularly monitors and reviewsassumptions related to the calculation of expected credit losses.
Deferred income tax assets
If there is adequate taxable profit to deduct the loss, the deferred income tax assets should be recognized by all the unusedtax loss. This requires the management to make a lot of judgment to forecast the time and amount of future taxable profit anddetermine the amount of the deferred tax assets based on the taxation strategy.
Income recognition
The Company's revenue from providing curtain wall construction and metro platform screen door installation services isrecognized over a period of time. The recognition of the income and profit of such engineering installation services depends on theCompany's estimation of the contract results and performance progress. If the actual amount of total revenue and total cost ishigher or lower than the estimated value of the management, it will affect the amount of revenue and profit recognition of theCompany in the future.
Engineering contract
The management shall make relevant judgment to confirm the income and expenses of project contracting businessaccording to the performance progress. If losses are expected to occur in the project contract, such losses shall be recognized ascurrent expenses. The management of the Company estimates the possible losses according to the budget of the project contract.The Company determines the transaction price according to the terms of the contract and in combination with previous customarypractices, and considers the influence of variable consideration, major financing components in the contract and other factors.During the performance of the contract, the Company continuously reviews the estimated total contract revenue and the estimatedtotal contract cost. When the initial estimate changes, such as contract changes, claims and awards, the estimated total contract
revenue and the estimated total contract cost are revised. When the estimated total contract cost exceeds the total contract revenue,the main business cost and estimated liabilities shall be recognized according to the loss contract to be executed.
Estimate of fair valueThe Company uses fair value to measure investment real estate and needs to estimate the fair value of investment real estateat least quarterly. This requires the management to reasonably estimate the fair value of the investment real estate with the help ofvaluation experts.Development costFor property that has been handed over with income recognized, but whose public facilities have not been constructed or notbeen completed, the management will estimate the development cost for the part that has not been started according to the budgetto reflect the operation result of the property sales.
35. Major changes in accounting policies and estimates
1. Changes in important accounting policies
? Applicable □ Inapplicable
①Implement the provisions of the Accounting Standards for Business Enterprises Interpretation No. 15 on "accountingtreatment for the external sales of products or by-products produced by enterprises before the fixed assets reach theintended usable state or during the research and development process" and "judgment on loss contracts"On December 30, 2021, the Ministry of Finance issued the Interpretation of Accounting Standards for Business EnterprisesNo. 15 (Cai Kuai [2001] No. 35) (hereinafter referred to as "Interpretation No. 15"), Among them, the contents of "Accountingtreatment for the external sales of products or by-products produced by enterprises before the fixed assets reach the expectedusable state or during the research and development process" (hereinafter referred to as "Accounting treatment provisions for trialoperation sales") and "Judgment on loss contracts" shall be implemented as of January 1, 2022. The implementation of the relevantprovisions of the Interpretation No. 15 has no significant impact on the financial statements of the Company during the reportingperiod.
②Implement the interpretation of accounting standards for Business Enterprises No. 16
On November 30, 2022, the Ministry of Finance issued the Interpretation of Accounting Standards for Business EnterprisesNo. 16 (Cai Kuai [2002] No. 31, hereinafter referred to as Interpretation No. 16), "Accounting treatment of the income tax impactof dividends related to financial instruments classified as equity instruments by the issuer", "Accounting treatment of enterprises'modification of cash-settled share-based payments to equity-settled share-based payments", the contents of which shall beimplemented as of the date of promulgation. The implementation of the relevant provisions of the Interpretation No. 16 has nosignificant impact on the financial statements of the Company during the reporting period.
(2) Changes in major accounting estimates
□ Applicable ? Inapplicable
VI. Taxation
1. Major taxes and tax rates
Tax | Tax basis | Tax rate |
VAT | Taxable income | 1%, 3%, 5%, 6%, 9%, 13% |
City maintenance and construction tax | Taxable turnover | 1%, 5%, 7% |
Enterprise income tax | Taxable income | See the following table |
Education surtax | Taxable turnover | 3% |
Local education surtax | Taxable turnover | 2% |
Tax rates applicable for different tax payers
Tax payer | Income tax rate |
The Company | 25% |
Fangda Jianke | 15% |
Fangda Zhiyuan Technology | 15% |
Fangda Jiangxi New Material | 15% |
Chengdu Fangda Construction Technology Co., Ltd. (hereinafter Fangda Chengdu Technology) | 15% |
Dongguan Fangda New Material Co., Ltd. (hereinafter Fangda Dongguan New Material) | 15% |
Fangda Property | 25% |
Fangda New Energy | 25% |
Shenzhen Fangda Property Development Co., Ltd. (hereinafter Fangda Property Development) | 25% |
Jiangxi Fangda Property Development Co., Ltd. (hereinafter Fangda Jiangxi Property Development) | 25% |
Pingxiang Fangda Luxin New Energy Co., Ltd. (hereinafter Fangda Luxin New Energy) | 25% |
Nanchang Xinjian Fangda New Energy Co., Ltd. (hereinafter Fangda Xinjian New Energy) | 25% |
Dongguan Fangda New Energy Co., Ltd. (hereinafter Fangda Dongguan New Energy) | 25% |
Shenzhen QIanhai Kechuangyuan Software Co., Lt.d (hereinafter Kechuangyuan Software) | 25% |
Fangda Zhiyuan Technology (Hong Kong) Co., Ltd. (formerly known as Fangda Zhichuang Technology (Hong Kong) Co., Ltd., hereinafter referred to as Fangda Zhiyuan Technology (Hong Kong) Co., Ltd.) | 16.50% |
Fangda Zhiyuan Technology (Wuhan) Co., Ltd. (formerly known as Fangda Zhichuang Technology (Wuhan) Co., Ltd., hereinafter referred to as Fangda | 25% |
Zhiyuan Technology (Wuhan) Co., Ltd.) | |
Fangda Zhiyuan Technology (Nanchang) Co., Ltd. (formerly known as Fangda Zhichuang Technology (Nanchang) Co., Ltd., hereinafter referred to as Fangda Zhiyuan Technology Nanchang Company) | 25% |
Fangda Zhiyuan Technology (Dongguan) Co., Ltd. (formerly known as Fangda Zhichuang Technology (Dongguan) Co., Ltd., hereinafter referred to as Fangda Zhiyuan Technology (Dongguan) Co., Ltd.) | 25% |
General Rail Technology Private Limited | 17% |
Shihui International Holding Co., Ltd. (hereinafter Fangda Shihui International) | 16.50% |
Shenzhen Hongjun Investment Co., Ltd. (hereinafter Fangda Hongjun Investment) | 25% |
Fangda Australia Pty Ltd | 30% |
Shanghai Fangda Zhijian Technology Co., Ltd. (hereinafter referred to as Fangda Shanghai Zhijian company) | 15% |
Shenzhen Fangda Yunzhi Technology Co., Ltd. (formerly known as Shenzhen Fangda Yunzhi Technology Co., Ltd., hereinafter referred to as Fangda Yunzhi) | 25% |
Shanghai Fangda Jianzhi Technology Co., Ltd. (hereinafter Fangda Shanghai Jianzhi) | 25% |
Shenzhen Zhongrong Litai Investment Co. Ltd. (Zhongrong Litai) | 25% |
Chengdu Fangda Curtain Wall Technology Co., Ltd. (hereinafter Fangda Chengdu Curtain Wall) | 25% |
Fangda Southeast Asia Co., Ltd. (hereinafter Fangda Southeast Asia) | 20% |
Shenzhen Xunfu Investment Co., Ltd. (hereinafter referred to as Fangda Xunfu Investment) | 25% |
Shenzhen Lifu Investment Co., Ltd. (hereinafter referred to as Fangda Lifu Investment) | 25% |
Shenzhen Fangda Investment Partnership (Limited Partnership) (hereinafter referred to as Fangda Investment) | Inapplicable |
Fangda Jianke (Hong Kong) Co., Ltd. (hereinafter Fangda Jianke Hong Kong) | 16.50% |
Shenzhen Fangda Yunzhu Technology Co., Ltd. (formerly known as Shenzhen Yunzhu Industry Co., Ltd., hereinafter referred to as Fangda Yunzhu Company) | 15% |
Shenzhen Yunzhu Testing Technology Co., Ltd. (Hereinafter Fangda Yunzhu Testing) | 25% |
Jiangxi Fangda Intelligent Manufacturing Technology Co., Ltd. (hereinafter referred to as Fangda Intelligent Manufacturing Company) | 25% |
2. Tax preference
(1) On December 23, 2021, the subsidiary Fangda Jianke obtained the certificate of high-tech enterprise jointly issued byShenzhen Science and Technology Innovation Commission, Shenzhen Finance Bureau, State Administration of Taxation andShenzhen Taxation Bureau. The certificate number is GR202144200527. Within three years after obtaining the qualification ofhigh-tech enterprise (from 2021 to 2023), the income tax will be levied at 15%.
(2) On December 23, 2021, the subsidiary Fangda Zhiyuan Technology Co., Ltd. obtained the certificate of high techenterprise jointly issued by Shenzhen Science and Technology Innovation Commission, Shenzhen Finance Bureau, State
Administration of Taxation and Shenzhen Taxation Bureau. The certificate number is GR202144205924. Within three years afterobtaining the qualification of high tech enterprise (from 2021 to 2023), the income tax will be levied at 15%.
(3) On November 3, 2021, the subsidiary Fangda Jiangxi New Material Co., Ltd. obtained the certificate of high techenterprise jointly issued by Jiangxi Provincial Department of Science and Technology, Jiangxi Provincial Department of Finance,State Administration of Taxation and Jiangxi Provincial Bureau of Taxation. The certificate number is GR202136000174. Withinthree years after obtaining the qualification of high tech enterprise (2021-2023), the income tax will continue to be levied at 15%.
(4) On December 3, 2020, the subsidiary Fangda Chengdu Technology obtained the certificate of high tech enterprise No.GR202051002193 jointly issued by the Department of Science and Technology of Sichuan Province, the Department of Finance ofSichuan Province, the State Administration of Taxation and the Sichuan Provincial Taxation Bureau. Within three years afterobtaining the qualification of high tech enterprise (2020-2022), the income tax will continue to be levied at 15%.
(5) On December 22, 2022, the subsidiary Fangda Dongguan New Materials Co., Ltd. obtained the certificate of high techenterprise No.GR202244006622 jointly issued by Guangdong Provincial Department of science and technology, GuangdongProvincial Department of Finance and Guangdong Provincial Taxation Bureau. Within three years (from 2022 to 2024) afterobtaining the qualification of high tech enterprise, the income tax will be charged at 15%.
(6) The subsidiary Kechuangyuan Software is an enterprise located in Qianhai Shenzhen Hong Kong Modern ServiceIndustry Cooperation Zone. Its main business meets the conditions of Preferential Catalogue of Enterprise Income Tax in QianhaiShenzhen Hong Kong Modern Service Industry Cooperation Zone (2021)(the Regulation shall be implemented from January 1,2021 to December 31, 2025), and the income tax is levied at 15%.
(7) On November 12, 2020, the subsidiary Fangda Shanghai Zhijian obtained the certificate of high tech enterpriseNo.GR202031001525 jointly issued by Shanghai Science and Technology Commission, Shanghai Finance Bureau and ShanghaiTaxation Bureau. Within three years (from 2020 to 2022) after obtaining the qualification of high tech enterprise, the income taxwill continue to be charged at 15%.
(8) On December 11, 2020, the subsidiary Fangda Yunzhu Co., Ltd. obtained the certificate of high tech enterprise jointlyissued by Shenzhen Science and Technology Innovation Commission, Shenzhen Finance Bureau, State Administration of Taxationand Shenzhen Taxation Bureau. The certificate number is GR202044202438. Within three years after obtaining the qualificationof high tech enterprise (from 2020 to 2022), the income tax will be levied at 15%.
(9) According to the Notice of the Ministry of Finance and the State Administration of Taxation on the Implementation of theInclusive Tax Reduction Policy for Small and Micro Enterprises (CS [2019] No. 13), the Notice of the Ministry of Finance and theState Administration of Taxation on the Implementation of the Income Tax Preferential Policy for Small and Micro Enterprisesand Individual Businesses (Announcement of the General Administration of Taxation of the Ministry of Finance, No. 12, 2021)According to the Announcement of the State Administration of Taxation on the Implementation of the Preferential Policies for theDevelopment of Income Tax for Small and Micro-profit Enterprises and Individual Businesses (Announcement No. 8 of the StateAdministration of Taxation in 2021) and the Announcement of the State Administration of Taxation of the Ministry of Finance onthe Further Implementation of the Preferential Policies for Income Tax for Small and Micro-profit Enterprises (Announcement No.13 of the State Administration of Taxation in 2022), some companies belong to small and micro-profit enterprises in 2022, Theirincome shall be subject to enterprise income tax in accordance with the provisions of the above documents.VII. Notes to the consolidated financial statements
1. Monetary capital
In RMB
Item | Closing balance | Opening balance |
Inventory cash: | 149.81 | 3,192.76 |
Bank deposits | 809,288,523.64 | 910,763,535.83 |
Other monetary capital | 429,465,543.05 | 376,797,030.73 |
Total | 1,238,754,216.50 | 1,287,563,759.32 |
Including: total amount deposited in overseas | 49,596,440.24 | 43,244,091.68 |
The total amount of money that has restrictions on use due to mortgage, pledge or freezing | 455,076,287.44 | 395,312,687.73 |
Others:
(1) The restricted funds used in the ending balance of bank deposits are RMB32,904,822.35, includingRMB241,305.03 in the real estate development supervision account, RMB19,342,686.90 in the labor insurancespecial account and migrant workers' wage special account, RMB13,213,791.84 in the loan supervision account,and RMB107,038.58 in the fixed deposit interest; In the closing balance of other monetary funds, the funds withlimited use are RMB422,171,465.09, mainly including bill deposit, stage guarantee deposit, and guaranteedeposit issued. In addition, there are no other funds in the monetary funds at the end of the period that haverestrictions on use and potential recovery risks due to mortgages, pledges or freezing.
(2) In the preparation of the cash flow statement, the above-mentioned deposits and other restricted depositsare not used as cash and cash equivalents.
(3) At the end of the period, the Company's total amount deposited abroad was RMB49,596,440.24.
2. Transactional financial assets
In RMB
Item | Closing balance | Opening balance |
Financial assets measured at fair value with variations accounted into current income account | 25,135,241.89 | |
Including: Investment of financial products | 25,135,241.89 | |
Total | 25,135,241.89 |
3. Derivative financial assets
In RMB
Item | Closing balance | Opening balance |
Futures contracts | 310,325.00 | |
Forward foreign exchange contract | 789,205.34 | 759,262.62 |
Total | 789,205.34 | 1,069,587.62 |
4. Notes receivable
(1) Classification of notes receivable
In RMB
Item | Closing balance | Opening balance |
Bank acceptance | 111,994,295.62 | 133,618,433.58 |
Commercial acceptance | 18,434,258.87 | 32,759,446.43 |
Total | 130,428,554.49 | 166,377,880.01 |
In 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 | |||
Including: | ||||||||||
Notes receivable with | 132,708,717.05 | 100.00% | 2,280,162.56 | 1.72% | 130,428,554.49 | 168,962,589.90 | 100.00% | 2,584,709.89 | 1.53% | 166,377,880.01 |
provision for bad debts by portfolio | ||||||||||
Including: | ||||||||||
Commercial acceptance | 114,274,458.18 | 86.11% | 2,280,162.56 | 2.00% | 111,994,295.62 | 136,203,143.47 | 80.61% | 2,584,709.89 | 1.90% | 133,618,433.58 |
Bank acceptance | 18,434,258.87 | 13.89% | 18,434,258.87 | 32,759,446.43 | 19.39% | 32,759,446.43 | ||||
Total | 132,708,717.05 | 100.00% | 2,280,162.56 | 1.72% | 130,428,554.49 | 168,962,589.90 | 100.00% | 2,584,709.89 | 1.53% | 166,377,880.01 |
Provision for bad debts by combination: trade acceptance
In RMB
Name | Closing balance | ||
Remaining book value | Bad debt provision | Provision rate | |
Commercial acceptance | 114,274,458.18 | 2,280,162.56 | 2.00% |
Total | 114,274,458.18 | 2,280,162.56 |
Provision for bad debts by combination: bank acceptance
In RMB
Name | Closing balance | ||
Remaining book value | Bad debt provision | Provision rate | |
Bank acceptance | 18,434,258.87 | 0.00 | 0.00% |
Total | 18,434,258.87 | 0.00 |
If the provision for bad debts of bills 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
(2) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Type | Opening balance | Change in the period | Closing balance | |||
Provision | Written-back or recovered | Canceled | Others | |||
Commercial acceptance | 2,584,709.89 | -304,547.33 | 2,280,162.56 | |||
Total | 2,584,709.89 | -304,547.33 | 2,280,162.56 |
Including significant recovery or reversal:
□ Applicable ? Inapplicable
(3) The Group has no endorsed or discounted immature receivable notes at the end of the period.
In RMB
Item | De-recognized amount | Not de-recognized amount |
Bank acceptance | 17,869,328.87 | |
Commercial acceptance | 6,677,013.28 | |
Total | 24,546,342.15 |
(4) Notes transferred to accounts receivable due to default of the issue at the end of period
In RMB
Item | Amount transferred to accounts receivable at the end of the period |
Commercial acceptance | 44,712,018.28 |
Total | 44,712,018.28 |
5. Account receivable
(1) Account receivable disclosed by categories
In 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 | 89,501,875.22 | 8.46% | 83,454,234.68 | 93.24% | 6,047,640.54 | 83,718,640.09 | 11.18% | 78,221,018.60 | 93.43% | 5,497,621.49 |
Including: | ||||||||||
1. Customer 1 | 54,873,223.21 | 5.19% | 54,873,223.21 | 100.00% | 54,873,223.21 | 7.32% | 54,873,223.21 | 100.00% | ||
2. Customer 2 | 13,461,834.96 | 1.27% | 13,461,834.96 | 100.00% | 13,461,834.96 | 1.80% | 13,461,834.96 | 100.00% | ||
3. Customer 3 | 4,998,860.10 | 0.47% | 2,499,430.06 | 50.00% | 2,499,430.04 | 4,998,860.10 | 0.67% | 2,499,430.06 | 50.00% | 2,499,430.04 |
4. Customer 4 | 7,096,421.00 | 0.67% | 3,548,210.50 | 50.00% | 3,548,210.50 | 5,996,382.91 | 0.80% | 2,998,191.46 | 50.00% | 2,998,191.45 |
5. Customer 5 | 9,071,535.95 | 0.86% | 9,071,535.95 | 100.00% | 4,388,338.91 | 0.59% | 4,388,338.91 | 100.00% | ||
Account | 968,358,4 | 91.54 | 142,113, | 14.68% | 826,244, | 664,994, | 88.82% | 114,038, | 17.15% | 550,956, |
receivable for which bad debt provision is made by group | 65.15 | % | 757.52 | 707.63 | 519.44 | 316.73 | 202.71 | |||
Including: | ||||||||||
1. Portfolio 1: Engineering operations section | 714,451,919.44 | 67.54% | 128,787,757.87 | 18.03% | 585,664,161.57 | 414,989,471.61 | 55.43% | 101,816,476.32 | 24.53% | 313,172,995.29 |
2. Portfolio 2: Real estate business payments | 167,560,235.16 | 15.84% | 7,893,605.97 | 4.71% | 159,666,629.19 | 153,920,735.18 | 20.56% | 7,774,660.29 | 5.05% | 146,146,074.89 |
3. Portfolio 3: Other business models | 86,346,310.55 | 8.16% | 5,432,393.68 | 6.29% | 80,913,916.87 | 96,084,312.65 | 12.83% | 4,447,180.12 | 4.63% | 91,637,132.53 |
Total | 1,057,860,340.37 | 100.00% | 225,567,992.20 | 21.32% | 832,292,348.17 | 748,713,159.53 | 100.00% | 192,259,335.33 | 25.68% | 556,453,824.20 |
Separate bad debt provision:
In RMB
Name | Closing balance | |||
Remaining book value | Bad debt provision | Provision rate | Reason | |
1. Customer 1 | 54,873,223.21 | 54,873,223.21 | 100.00% | Customer credit status deteriorates and is hard to recover |
2. Customer 2 | 13,461,834.96 | 13,461,834.96 | 100.00% | Customer credit status deteriorates and is hard to recover |
3. Customer 3 | 4,998,860.10 | 2,499,430.06 | 50.00% | Customer credit status deteriorates |
4. Customer 4 | 7,096,421.00 | 3,548,210.50 | 50.00% | Customer credit status deteriorates |
5. Customer 5 | 9,071,535.95 | 9,071,535.95 | 100.00% | Customer credit status deteriorates and is hard to recover |
Total | 89,501,875.22 | 83,454,234.68 |
Provision for bad debts by combination: Portfolio 1: Engineering business
In RMB
Name | Closing balance | ||
Remaining book value | Bad debt provision | Provision rate | |
Less than 1 year | 382,919,778.43 | 7,506,149.45 | 1.96% |
1-2 years | 123,887,342.34 | 7,012,023.57 | 5.66% |
2-3 years | 45,783,561.85 | 5,841,982.50 | 12.76% |
3-4 years | 49,929,170.68 | 9,866,004.13 | 19.76% |
4-5 years | 23,522,990.73 | 10,152,522.81 | 43.16% |
Over 5 years | 88,409,075.41 | 88,409,075.41 | 100.00% |
Total | 714,451,919.44 | 128,787,757.87 |
Group recognition basis:
See 9. Financial Tools in Chapter X, V, Important Accounting Policies and Accounting Estimates for the recognition criteria andinstructions for withdrawing bad debt reserves by portfolioBad debt provision by portfolio: portfolio 2: real estate business funds
In RMB
Name | Closing balance | ||
Remaining book value | Bad debt provision | Provision rate | |
Less than 1 year | 123,037,500.21 | 1,230,375.00 | 1.00% |
1-2 years | 71,145.32 | 3,557.27 | 5.00% |
2-3 years | 80,647.44 | 4,032.37 | 5.00% |
3-4 years | |||
4-5 years | 22,273,070.00 | 3,340,960.50 | 15.00% |
Over 5 years | 22,097,872.19 | 3,314,680.83 | 15.00% |
Total | 167,560,235.16 | 7,893,605.97 |
Provision for bad debts by combination: portfolio 3: Others business
In RMB
Name | Closing balance | ||
Remaining book value | Bad debt provision | Provision rate | |
Less than 1 year | 64,757,643.57 | 472,730.80 | 0.73% |
1-2 years | 10,834,500.58 | 227,524.52 | 2.10% |
2-3 years | 3,942,000.67 | 331,916.46 | 8.42% |
3-4 years | 2,451,415.25 | 607,460.69 | 24.78% |
4-5 years | 4,197,979.88 | 3,629,990.61 | 86.47% |
Over 5 years | 162,770.60 | 162,770.60 | 100.00% |
Total | 86,346,310.55 | 5,432,393.68 |
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
Age | Remaining book value |
Within 1 year (inclusive) | 648,121,516.33 |
1-2 years | 135,225,634.55 |
2-3 years | 49,806,209.96 |
Over 3 years | 224,706,979.53 |
3-4 years | 54,194,564.87 |
4-5 years | 58,235,655.84 |
Over 5 years | 112,276,758.82 |
Total | 1,057,860,340.37 |
The Company needs to comply with the disclosure requirements of the decoration and decoration industry in the Guidelines for theSelf-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.
Customer | Balance of accounts receivable of over 3 years | Balance of provision for bad debts | Reason of the age | Whether there is a risk of recovery |
Customer 1 | 54,873,223.21 | 54,873,223.21 | Customer credit status deteriorates | Yes |
Customer 2 | 25,647,044.22 | 25,647,044.22 | Customer credit status deteriorates | Yes |
Customer 3 | 17,374,148.42 | 17,374,148.42 | Customer credit status deteriorates | Yes |
Customer 4 | 13,461,834.96 | 13,461,834.96 | Customer credit status deteriorates | Yes |
(2) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Type | Opening balance | Change in the period | Closing balance | |||
Provision | Written-back or recovered | Canceled | Others | |||
Separate bad debt provision | 78,221,018.60 | 9,621,554.99 | 4,388,338.91 | 83,454,234.68 | ||
Provision for bad debts by combination | 114,038,316.73 | 29,530,880.52 | 1,455,439.73 | 142,113,757.52 | ||
Total | 192,259,335.33 | 39,152,435.51 | 4,388,338.91 | 1,455,439.73 | 225,567,992.20 |
Including significant recovery or reversal:
In RMB
Entity | Written-back or recovered amount | Method |
Customer 1 | 4,388,338.91 | After applying for bankruptcy liquidation, the customer shall have priority to receive compensation and be recovered by bank transfer |
Total | 4,388,338.91 |
After the Company verified that 100% of the bad debt reserves were withdrawn in the early stage, it was difficult for themanagement to recover the original accounts receivable in full. Subsequently, the company made unremitting efforts to obtain thepriority right of repayment of the project funds through litigation, application for bankruptcy liquidation of the customer, andfinally recovered the above funds through priority repayment after the bankruptcy liquidation of the customer 1.
(3) Written-off account receivable during the period
In RMB
Item | Amount |
Account receivable written off | 1,455,439.73 |
(4) Balance of top 5 accounts receivable at the end of the period
In RMB
Entity | Closing balance of accounts receivable | Percentage (%) | Balance of bad debt provision at the end of the period |
No.1 | 94,349,640.05 | 8.92% | 48,873,302.85 |
No.2 | 61,265,539.43 | 5.79% | 6,679,120.90 |
No.3 | 54,873,223.21 | 5.19% | 54,873,223.21 |
No.4 | 37,413,214.07 | 3.53% | 733,299.00 |
No.5 | 31,500,000.00 | 2.98% | 1,784,736.49 |
Total | 279,401,616.76 | 26.41% |
(5) Amount of assets and liabilities formed by transferring accounts receivable and continuinginvolvement
Item | Transfer method of assets | Amount of assets formed by continued involvement | Amount of liabilities formed by continued involvement |
Customer 1 | Credit discount | 1,637,287.44 | 1,637,287.44 |
Total | 1,637,287.44 | 1,637,287.44 |
(6) Receivables derecognized due to transfer of financial assets
Item | Transfer method of financial assets | De-recognized amount | Gain or loss related to the de-recognition |
Customer 1 | Factoring | 20,793,323.45 | -766,342.66 |
Customer 2 | Factoring | 1,500,000.00 | -81,221.92 |
Customer 3 | Factoring | 1,750,233.20 | -65,862.60 |
Customer 4 | Factoring | 6,704,345.94 | -284,711.22 |
Customer 5 | Factoring | 6,845,674.82 | -240,379.89 |
Customer 6 | Factoring | 17,601,403.70 | -603,716.91 |
Customer 7 | Factoring | 2,319,372.24 | -92,748.47 |
Customer 8 | Factoring | 10,590,826.29 | -420,435.43 |
Customer 9 | Factoring | 18,382,512.81 | -674,142.74 |
Customer 10 | Factoring | 5,993,538.94 | -237,020.51 |
Customer 11
Customer 11 | Factoring | 1,663,330.96 | -53,975.09 |
Customer 12 | Factoring | 2,654,800.00 | -102,947.24 |
Customer 13 | Factoring | 5,000,000.00 | -65,625.00 |
Customer 14 | Factoring | 1,842,845.54 | -88,941.28 |
Total | 103,642,207.89 | -3,778,070.96 |
6. Receivable financing
In RMB
Item | Closing balance | Opening balance |
Notes receivable | 1,338,202.01 | 4,263,500.00 |
Total | 1,338,202.01 | 4,263,500.00 |
Increase or decrease in the current period of receivables financing and changes in fair value
□ Applicable ? Inapplicable
If the provision for financing impairment of receivables is accrued in accordance with the general expected credit loss model,please refer to the disclosure of other receivables to disclose the relevant information of the impairment provision:
□ Applicable ? Inapplicable
7. Prepayment
(1) Account ages of prepayments
In RMB
Age | Closing balance | Opening balance | ||
Amount | Proportion | Amount | Proportion | |
Less than 1 year | 14,930,557.32 | 72.37% | 18,013,831.62 | 78.24% |
1-2 years | 2,913,056.11 | 14.12% | 805,756.05 | 3.50% |
2-3 years | 582,237.19 | 2.82% | 2,467,980.33 | 10.72% |
Over 3 years | 2,205,799.97 | 10.69% | 1,734,917.03 | 7.54% |
Total | 20,631,650.59 | 23,022,485.03 |
Explanation of non-settlement of significant prepayments with an accounting age of more than 1 year:
At the end of the period, there is no significant prepayment with an aging of more than one year.
(2) Balance of top 5 prepayments at the end of the period
The total of top5 prepayments in terms of the prepaid entities in the period is RMB7,174,864.45,accounting for 34.78% of the total prepayments at the end of the period.
8. Other receivables
In RMB
Item | Closing balance | Opening balance |
Other receivables | 155,379,024.22 | 165,093,406.23 |
Total | 155,379,024.22 | 165,093,406.23 |
(1) Other receivables
1) Other receivables are disclosed by nature
In RMB
By nature | Closing balance of book value | Opening balance of book value |
Deposit | 99,789,014.58 | 106,427,141.89 |
Construction borrowing and advanced payment | 33,008,395.75 | 31,857,018.14 |
Staff borrowing and petty cash | 1,439,503.90 | 1,828,554.92 |
VAT refund receivable | 1,946,422.08 | 4,903,075.25 |
Debt by Luo Huichi | 11,242,291.48 | 12,992,291.48 |
Others | 30,122,981.20 | 29,074,979.66 |
Total | 177,548,608.99 | 187,083,061.34 |
2) Method of bad debt provision
In 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, 2022 | 2,216,451.18 | 573,868.37 | 19,199,335.56 | 21,989,655.11 |
Balance on January 1, 2022 in the current period | ||||
Provision | -152,479.64 | -456,184.11 | 2,538,593.41 | 1,929,929.66 |
Transferred back in the current period | 1,750,000.00 | 1,750,000.00 | ||
Balance on December 31, 2022 | 2,063,971.54 | 117,684.26 | 19,987,928.97 | 22,169,584.77 |
Changes in book balances with significant changes in the current period
□ Applicable ? Inapplicable
Account age
In RMB
Age | Remaining book value |
Within 1 year (inclusive) | 23,108,291.98 |
1-2 years | 6,830,367.09 |
2-3 years | 22,325,214.95 |
Over 3 years | 125,284,734.97 |
3-4 years | 18,001,035.18 |
4-5 years | 70,858,183.77 |
Over 5 years | 36,425,516.02 |
Total | 177,548,608.99 |
3) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Type | Opening balance | Change in the period | Closing balance | |||
Provision | Written-back or recovered | Canceled | Others | |||
Separate bad debt provision | 13,035,168.48 | 3,741,789.11 | 1,750,000.00 | 15,026,957.59 | ||
Provision for bad debts by combination | 8,954,486.63 | -1,811,859.45 | 7,142,627.18 | |||
Total | 21,989,655.11 | 1,929,929.66 | 1,750,000.00 | 22,169,584.77 |
Including significant recovery or reversal:
In RMB
Entity | Written-back or recovered amount | Method |
Luo Huichi | 1,750,000.00 | Recovery through bank transfer |
Total | 1,750,000.00 | —— |
4) Balance of top 5 other receivables at the end of the period
In RMB
Entity | By nature | Closing balance | Age | Percentage (%) | Balance of bad debt provision at the end of the period |
Shenzhen Yikang Real Estate Co. Ltd. | Margin and current account | 70,062,675.83 | 4-5 years | 39.46% | 1,043,933.87 |
Bangshen Electronics (Shenzhen) Co., Ltd. | Deposit | 20,000,000.00 | Over 5 years | 11.26% | 298,000.00 |
Shenzhen Rijiasheng Trading Co., Ltd | Arrears | 18,708,945.57 | 2-3 years | 10.54% | 3,741,789.11 |
Luo Huichi | Debt by Luo Huichi | 11,242,291.48 | Over 5 years | 6.33% | 11,242,291.48 |
Shenzhen Henggang Dakang Co., Ltd. | Deposit | 8,000,000.00 | 4-5 years | 4.51% | 119,200.00 |
Total | 128,013,912.88 | 72.10% | 16,445,214.46 |
5) Items involving government subsidies:
In RMB
Entity | Governmental subsidy | Closing balance | Closing age | Estimated time, amount and basis of receipt |
Shenzhen Tax Bureau of State Administration of Taxation | Receivable refund of VAT | 1,946,422.08 | Less than 1 year | Full recovered in less than 1 year |
9. Inventories
Whether the Company needs to comply with disclosure requirements of the real estate industry.Yes
(1) Classification of inventories
The Company needs to comply with the disclosure requirements of the real estate industry in the Guidelines for the Self-disciplineand Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.Classified by nature:
In RMB
Item | Closing balance | Opening balance | ||||
Remaining book value | Provision for inventory depreciation or contract performance cost impairment provision | Book value | Remaining book value | Provision for inventory depreciation or contract performance cost impairment provision | Book value | |
Development cost | 219,112,637.71 | 219,112,637.71 | 214,159,331.62 | 214,159,331.62 | ||
Development products | 150,695,868.79 | 150,695,868.79 | 215,045,857.53 | 215,045,857.53 | ||
Contract performance costs | 88,165,638.94 | 88,165,638.94 | 120,770,607.88 | 120,770,607.88 | ||
Raw materials | 124,041,162.65 | 124,041,162.65 | 87,964,749.50 | 87,964,749.50 | ||
Product in process | 95,231,082.82 | 95,231,082.82 | 71,066,791.34 | 71,066,791.34 | ||
Finished goods in stock | 8,937,351.29 | 8,937,351.29 | 7,514,662.13 | 7,514,662.13 | ||
Low price consumable | 193,880.28 | 193,880.28 | 190,365.86 | 190,365.86 | ||
OEM materials | 22,479,288.26 | 22,479,288.26 | 16,568,559.12 | 16,568,559.12 | ||
Goods delivered | 1,675,486.58 | 1,675,486.58 | ||||
Total | 710,532,397.32 | 710,532,397.32 | 733,280,924.98 | 733,280,924.98 |
Development cost and capitalization rate of its interest are disclosed as follows:
In RMB
Project name | Starting time | Estimated finish time | Estimated total investment | Opening balance | Transferred to development product in this period | Other decrease in this period | Increase (development cost) in this period | Closing balance | Accumulative capitalized interest | Including: capitalized interest for the current period | Capital source |
Dakang Village Project in Shenzhen | December 1, 2024 | December 31, 2030 | 3,600,000,000.00 | 199,023,484.28 | 0.00 | 0.00 | 1,185,633.64 | 200,209,117.92 | 0.00 | 0.00 | Bank loan and self-owned fund |
Fangda Bangshen Industry Park | December 1, 2023 | December 31, 2025 | 870,000,000.00 | 15,135,847.34 | 0.00 | 0.00 | 3,767,672.45 | 18,903,519.79 | 0.00 | 0.00 | |
Total | -- | -- | 4,470,000,000. | 214,159,331.62 | 0.00 | 0.00 | 4,953,306.09 | 219,112,637.71 | 0.00 | 0.00 | -- |
Disclose the main project information of "Development Products" according to the following format:
In RMB
Project name
Project name | Completion time | Opening balance | Increase | Decrease | Closing balance | Accumulative capitalized interest | Including: capitalized interest for the current period |
Phase I of Fangda Town | 29 December 2016 | 62,930,177.37 | 40,394,785.98 | 22,535,391.39 | 867,152.26 | 0.00 | |
Nanchang Fangda Center | April 27, 2021 | 152,115,680.16 | 23,955,202.76 | 128,160,477.40 | 4,956,638.66 | 0.00 | |
Total | -- | 215,045,857.53 | 64,349,988.74 | 150,695,868.79 | 5,823,790.92 | 0.00 |
(2) Capitalization rate of interest in the closing inventory balance
As of December 31, 2022, the capitalization amount of borrowing costs in the endinginventory balance is RMB5,823,790.92.
10. Contract assets
In RMB
Item | Closing balance | Opening balance | ||||
Remaining book value | Impairment provision | Book value | Remaining book value | Impairment provision | Book value | |
Completed and unsettled project funds that fail to meet the collection conditions | 2,176,000,625.48 | 173,393,371.22 | 2,002,607,254.26 | 1,846,449,787.26 | 146,621,352.05 | 1,699,828,435.21 |
Quality guarantee deposit that fails to meet the collection conditions | 133,413,895.62 | 19,336,873.48 | 114,077,022.14 | 57,766,007.09 | 8,365,574.02 | 49,400,433.07 |
Sales funds with conditional collection right | 42,541,809.75 | 365,427.72 | 42,176,382.03 | 34,103,742.16 | 384,937.31 | 33,718,804.85 |
Total | 2,351,956,330.85 | 193,095,672.42 | 2,158,860,658.43 | 1,938,319,536.51 | 155,371,863.38 | 1,782,947,673.13 |
The amount and reasons for major changes in the book value of contract assets during the current period:
In RMB
Item | Change | Reason |
Completed and unsettled project funds | 329,550,838.22 | This is mainly due to the unsettled project funds with conditional collection rights |
arising from the revenue recognized in the project contract this year | ||
Warranty | 75,647,888.53 | It is mainly caused by the increase of warranty deposit due within one year |
Total | 405,198,726.75 | —— |
If the provision for bad debts of contract assets 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
Provision made for bad debts of contract assets in this period
In RMB
Item | Provision | Transferred back in the current period | Written off in the current period | Reason |
Separate bad debt provision | -9,455,813.64 | |||
Provision for bad debts by combination | 47,179,622.68 | |||
Total | 37,723,809.04 | —— |
11. Other current assets
In RMB
Item | Closing balance | Opening balance |
Reclassification of VAT debit balance | 174,264,248.29 | 145,743,267.08 |
Overpayment and prepayment of income tax | 3,997,524.27 | 98,092,258.00 |
Other prepaid taxes | 3,348,706.84 | 8,520,856.65 |
Payment to be collected on behalf of suppliers | 12,015,367.57 | |
Subsidiary IPO intermediary fee | 2,064,871.00 | |
Deferred discount expenses and others | 5,291,245.63 | 12,430,124.56 |
Total | 200,981,963.60 | 264,786,506.29 |
12. Long-term share equity investment
In RMB
Invested entity | Opening book value | Change (+,-) | Closing book value | 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 | |||||||||||
Ganshang Joint | 2,365,399.31 | 20,096.59 | 2,385,495.90 |
Investment | |||||||||||
Jiangxi Business Innovative Property Joint Stock (Jiangxi Business Inovation) | 52,853,546.83 | -270,000.59 | 52,583,546.24 | ||||||||
Subtotal | 55,218,946.14 | -249,904.00 | 54,969,042.14 | ||||||||
Total | 55,218,946.14 | -249,904.00 | 54,969,042.14 |
13. Investment in other equity tools
In RMB
Item | Closing balance | Opening balance |
Unlisted equity instrument investment | 11,968,973.86 | 14,180,652.65 |
Total | 11,968,973.86 | 14,180,652.65 |
Sub-disclosure of non-tradable equity instrument investment in the current period
In RMB
Project name | 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 |
Shenyang Fangda | 16,593,601.81 | |||||
Shenzhen Huihai Yirong Internet Service Co., Ltd. | 3,779,277.52 |
14. Other non-current financial assets
In RMB
Item | Closing balance | Opening balance |
Financial assets measured at fair value with variations accounted into current income account | 7,507,434.68 | 7,525,408.24 |
Total | 7,507,434.68 | 7,525,408.24 |
15. Investment real estates
(1) Investment real estate measured at costs
? Applicable □ Inapplicable
In RMB
Item | Houses & buildings | Total |
I. Book value | ||
1. Opening balance | 17,388,824.39 | 17,388,824.39 |
2. Increase in this period | ||
3. Decrease in this period | ||
4. Closing balance | 17,388,824.39 | 17,388,824.39 |
II. Accumulative depreciation and amortization | ||
1. Opening balance | 7,253,011.36 | 7,253,011.36 |
2. Increase in this period | 449,408.04 | 449,408.04 |
(1) Provision or amortization | 449,408.04 | 449,408.04 |
3. Decrease in this period | ||
4. Closing balance | 7,702,419.40 | 7,702,419.40 |
III. Impairment provision | ||
1. Opening balance | ||
2. Increase in this period | ||
3. Decrease in this period | ||
4. Closing balance | ||
IV. Book value | ||
1. Closing book value | 9,686,404.99 | 9,686,404.99 |
2. Opening book value | 10,135,813.03 | 10,135,813.03 |
(2) Investment real estate measured at fair value
? Applicable □ Inapplicable
Item | Houses & buildings | Total |
I. Opening balance | 5,755,216,580.10 | 5,755,216,580.10 |
II. Change in this period | -4,385,407.98 | -4,385,407.98 |
Add: Transfer-in from inventory\fixed assets\construction in progress | 27,649,775.66 | 27,649,775.66 |
Less: disposal | 8,622,022.15 | 8,622,022.15 |
Other transfer-out | 17,660,490.58 | 17,660,490.58 |
Change in fair value | -5,752,670.91 | -5,752,670.91 |
III. Closing balance | 5,750,831,172.12 | 5,750,831,172.12 |
In RMBThe Company needs to comply with the disclosure requirements of the real estate industry in the Guidelines for the Self-disciplineand Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.Disclosure of investment real estate measured at fair value by projects
In RMB
Project name | Location | Completion time | Building area | Rental income in the report period | Opening fair value | Closing fair value | Change in fair value | Reason for the change and report |
Fangda Town commercial and office buildings | Shenzhen | October 11, 2017, December 29, 2018 | 95,083.13 | 114,099,793.05 | 4,985,487,880.63 | 4,968,727,749.00 | -0.34% | The main recognition basis of the fair value is the real estate appraisal report "SWJPZ [2023] SZ No.002 and No.003" issued by Shenzhen Wenji Land Real Estate Appraisal Engineering Consulting Co., Ltd |
Fangda Building | Shenzhen | 28 December 2002 | 17,725.36 | 17,550,588.65 | 329,471,982.00 | 333,236,768.00 | 1.14% | |
Nanchang Fangda Center | Nanchang | December 10, 2020 | 37,270.58 | 11,667,537.01 | 436,493,838.47 | 423,314,763.12 | -3.02% | |
Others | Beijing, Changchun, Guiyang, Shaoguan, etc | 2,610.04 | 77,683.38 | 3,762,879.00 | 25,551,892.00 | 579.05% | The main recognition basis of fair value is: the real estate appraisal report (SWJPZ [2023] SZ No.004-No.008) issued by Shenzhen Wenji Land Real Estate Appraisal Engineering Consulting Co., Ltd; The change of 579.05% in fair value in the current period is |
mainly due to the change of some fixed assets into investment real estate for external lease. For details, see "New Investment Real Estate Measured by Fair Value in the Current Period". | ||||||||
Total | 152,689.11 | 143,395,602.09 | 5,755,216,580.10 | 5,750,831,172.12 | -0.08% |
Whether the Company has investment real estate in the current construction period
□ Yes ? No
Whether there is new investment real estate measured at fair value in the report period? Yes □ NoNewly-added investment real estate measured by fair value in the current period:
In RMB
Project name | Original accounting method | Original book value | Recorded fair value | Closing fair value | Change time | Different handling method and basis |
Others | 25,862,101.38 | 21,875,821.00 | 21,875,821.00 | |||
Total | 25,862,101.38 | 21,875,821.00 | 21,875,821.00 |
(3) Investment real estate without ownership certificate
In RMB
Item | Book value | Reason |
Others | 1,574,816.00 | Affected by the COVID-19, it has not been handled yet |
Total | 1,574,816.00 |
Others:
① The fair value of some real estate in Fangda Town is RMB1,951,090,984.51, which has been mortgaged to the loan of ChinaConstruction Bank Shenzhen OCT sub branch. The loan has not expired and has not been released; The fair value of some realestate in fangdacheng is RMB1,342,642,490.00, which has been mortgaged to the loan of Shenzhen Dongbin branch of HuaxiaBank. The loan has not expired and has not been released.
② Other transfer-out in the current period is due to the need of business development. The company transferred out the amount ofRMB3,032,342.13 by transferring some houses from external rental to self-use, and reduced the original estimated cost byRMB14,628,148.45 according to the actual settlement.
16. Fixed assets
In RMB
Item | Closing balance | Opening balance |
Fixed assets | 646,812,853.36 | 663,414,297.61 |
Total | 646,812,853.36 | 663,414,297.61 |
(1) Fixed assets
In RMB
Item | Houses & buildings | Mechanical equipment | Transportation facilities | Electronics and other devices | PV power plants | Total |
I. Book value | ||||||
1. Opening balance | 610,564,471.12 | 120,638,873.28 | 21,390,928.69 | 50,870,105.77 | 129,596,434.84 | 933,060,813.70 |
2. Increase in this period | 33,554,678.91 | 10,901,279.31 | 1,773,951.04 | 2,475,883.36 | 0.00 | 48,705,792.62 |
(1) Purchase | 187,307.90 | 10,901,279.31 | 1,751,256.55 | 2,475,883.36 | 15,315,727.12 | |
(2) Transfer-in of construction in progress | 20,892,009.41 | 20,892,009.41 | ||||
(3) Other increases | 12,475,361.60 | 22,694.49 | 12,498,056.09 | |||
3. Decrease in this period | 36,903,250.10 | 727,534.43 | 2,888,774.82 | 1,404,713.14 | - | 41,924,272.49 |
(1) Disposal or retirement | 4,507,401.37 | 727,534.43 | 2,888,774.82 | 1,404,713.14 | 9,528,423.76 | |
(2) Other decrease | 32,395,848.73 | 32,395,848.73 | ||||
4. Closing balance | 607,215,899.93 | 130,812,618.16 | 20,276,104.91 | 51,941,275.99 | 129,596,434.84 | 939,842,333.83 |
II. Accumulative |
depreciation | ||||||
1. Opening balance | 96,553,528.93 | 91,086,675.44 | 16,472,796.03 | 30,931,249.97 | 34,505,796.22 | 269,550,046.59 |
2. Increase in this period | 17,232,446.77 | 2,687,633.87 | 837,258.62 | 2,726,650.38 | 6,148,440.12 | 29,632,429.76 |
(1) Provision | 17,232,446.77 | 2,687,633.87 | 825,212.90 | 2,726,650.38 | 6,148,440.12 | 29,620,384.04 |
(2) Other increases | 12,045.72 | 12,045.72 | ||||
3. Decrease in this period | 1,761,858.91 | 650,994.84 | 2,599,897.33 | 1,236,714.30 | 0.00 | 6,249,465.38 |
(1) Disposal or retirement | 331,360.01 | 650,994.84 | 2,599,897.33 | 1,236,714.30 | 4,818,966.48 | |
(2) Other decrease | 1,430,498.90 | 1,430,498.90 | ||||
4. Closing balance | 112,024,116.79 | 93,123,314.47 | 14,710,157.32 | 32,421,186.05 | 40,654,236.34 | 292,933,010.97 |
III. Impairment provision | ||||||
1. Opening balance | 79,843.20 | 16,626.30 | 96,469.50 | |||
2. Increase in this period | ||||||
3. Decrease in this period | ||||||
4. Closing balance | 79,843.20 | 16,626.30 | 96,469.50 | |||
IV. Book value | ||||||
1. Closing book value | 495,191,783.14 | 37,609,460.49 | 5,565,947.59 | 19,503,463.64 | 88,942,198.50 | 646,812,853.36 |
2. Opening book value | 514,010,942.19 | 29,472,354.64 | 4,918,132.66 | 19,922,229.50 | 95,090,638.62 | 663,414,297.61 |
(2) Fixed assets without ownership certificate
In RMB
Item | Book value | Reason |
Yuehai Office Building C 502 | 112,420.05 | Historical reasons |
Others:
① On December 31, 2022, the net value of RMB44,751,777.53 in the Company's houses and buildings has been mortgaged toChina Construction Bank Shenzhen Overseas Chinese Town Sub-branch for loans.
② Among the changes in the current period, the increase of houses and other buildings was RMB12,475,361.6, which was causedby the receipt of mortgaged properties by the subsidiary Fangda Construction Section.
③ In the current period, the house and other buildings decreased by RMB32,395,848.73, of which the Company reducedRMB31,398,815.30 by transferring some houses from self-use to external lease due to the need of business development, and theoriginal estimated amount decreased by RMB997,033.43 due to settlement adjustment.
22. Construction in process
In RMB
Item | Closing balance | Opening balance |
Construction in process | 11,642,444.21 | |
Total | 11,642,444.21 |
(1) Construction in progress
In RMB
Item | Closing balance | Opening balance | ||||
Remaining book value | Impairment provision | Book value | Remaining book value | Impairment provision | Book value | |
Construction and decoration of self use part of Fangda Center | 11,642,444.21 | 11,642,444.21 | ||||
Total | 11,642,444.21 | 11,642,444.21 |
(2) Changes in major construction in process in this period
In RMB
Project name | 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 |
Construction and decoration of self use part of Fangda Center | 13,000,000.00 | 11,642,444.21 | 3,649,003.82 | 15,291,448.03 | 117.63% | Completed | 282,357.24 | Loans from financial institutions+ self-owned fund | ||||
Total | 13,000,000.00 | 11,642,444.21 | 3,649,003.82 | 15,291,448.03 | 282,357.24 |
25. Use right assets
In RMB
Item | Houses & buildings | Transportation facilities | Total |
I. Book value | |||
1. Opening balance | 37,075,290.17 | 1,319,251.12 | 38,394,541.29 |
2. Increase in this period | 1,747,335.34 | 1,747,335.34 | |
3. Decrease in this period | 915,139.57 | 915,139.57 | |
4. Closing balance | 37,907,485.94 | 1,319,251.12 | 39,226,737.06 |
II. Accumulative depreciation | |||
1. Opening balance | 6,344,621.50 | 609,063.25 | 6,953,684.75 |
2. Increase in this period | 12,548,843.12 | 609,063.24 | 13,157,906.36 |
(1) Provision | 12,548,843.12 | 609,063.24 | 13,157,906.36 |
3. Decrease in this period | 334,547.45 | 334,547.45 | |
4. Closing balance | 18,558,917.17 | 1,218,126.49 | 19,777,043.66 |
III. Impairment provision | |||
1. Opening balance | |||
2. Increase in this period | |||
3. Decrease in this period | |||
4. Closing balance | |||
IV. Book value | |||
1. Closing book value | 19,348,568.77 | 101,124.63 | 19,449,693.40 |
2. Opening book value | 30,730,668.67 | 710,187.87 | 31,440,856.54 |
Note: The depreciation amount of use right assets in 2022 is RMB13,157,906.36.
26. Intangible assets
(1) Intangible assets
In RMB
Item | Land using right | Patent | Unpatented technologies | Trademarks, patents and know-how | Software | Total |
I. Book value | ||||||
1. Opening balance | 80,404,737.13 | 8,989,350.94 | 21,627,838.43 | 111,021,926.50 | ||
2. Increase in this period | 24,421.75 | 1,901,262.23 | 1,905,500.53 | |||
(1) Purchase | 24,421.75 | 1,901,262.23 | 1,925,683.98 | |||
3. Decrease in this period | ||||||
4. Closing balance | 80,404,737.13 | 9,013,772.69 | 23,529,100.66 | 112,947,610.48 | ||
II. Accumulative amortization | ||||||
1. Opening balance | 17,370,871.00 | 8,652,629.93 | 9,798,712.74 | 35,822,213.67 | ||
2. Increase in this period | 2,295,272.94 | 147,141.86 | 2,003,537.75 | 4,445,952.55 | ||
(1) Provision | 2,295,272.94 | 147,141.86 | 2,003,537.75 | 4,445,952.55 | ||
3. Decrease in |
this period | ||||||
4. Closing balance | 19,666,143.94 | 8,799,771.79 | 11,802,250.49 | 40,268,166.22 | ||
III. Impairment provision | ||||||
1. Opening balance | ||||||
2. Increase in this period | ||||||
3. Decrease in this period | ||||||
4. Closing balance | ||||||
IV. Book value | ||||||
1. Closing book value | 60,738,593.19 | 214,000.90 | 11,726,850.17 | 72,679,444.26 | ||
2. Opening book value | 63,033,866.13 | 336,721.01 | 11,829,125.69 | 75,199,712.83 |
27. Long-term amortizable expenses
In 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 | 1,028,527.10 | 56,101.56 | 972,425.54 | ||
Reconstruction project of sample room | 231,427.38 | 115,713.60 | 115,713.78 | ||
Membership fee | 193,749.80 | 900,000.00 | 388,749.84 | 704,999.96 | |
Waterproofing works for employee dormitories | 472,886.09 | 92,507.31 | 380,378.78 | ||
Management consulting service fee | 178,466.08 | 64,896.72 | 113,569.36 | ||
Warehouse addition and renovation project | 151,376.19 | 60,550.44 | 90,825.75 | ||
Dahuaxin Dongguan Songshanhu rubber area interlayer transformation | 180,428.08 | 180,428.08 | |||
Factory wall painting and rolling shutter door engineering | 172,368.00 | 45,964.80 | 126,403.20 | ||
Property insurance premium | 237,369.99 | 84,625.00 | 252,975.91 | 69,019.08 | |
Plant ground reconstruction project | 319,593.71 | 87,162.00 | 232,431.71 | ||
High voltage network access fee of East China base | 794,750.23 | 307,645.32 | 487,104.91 | ||
Sporadic decoration and renovation costs of Fangda | 4,724,856.77 | 809,024.66 | 3,915,832.11 |
Town | |||||
Sporadic decoration and renovation costs of Fangda Center | 1,184,221.28 | 114,961.72 | 1,069,259.56 | ||
Others | 1,427,827.57 | 1,705,270.63 | 1,112,514.27 | 173,507.88 | 1,847,076.05 |
Total | 5,388,770.22 | 8,598,973.68 | 3,689,196.23 | 553,886.66 | 9,744,661.01 |
28. Differed income tax assets and differed income tax liabilities
(1) Non-deducted deferred income tax assets
In RMB
Item | Closing balance | Opening balance | ||
Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
Assets impairment provision | 295,671,508.97 | 54,047,399.06 | 257,631,149.84 | 48,121,014.85 |
Unrealized profit of internal transactions | 281,819,399.92 | 55,869,584.56 | 281,712,399.14 | 55,842,834.37 |
Deductible loss | 160,102,622.27 | 32,419,194.27 | 194,235,656.90 | 44,060,479.20 |
Credit impairment provision | 249,948,173.84 | 39,913,829.96 | 216,539,086.13 | 34,918,828.89 |
Unrealizable gross profit | 112,847,972.30 | 27,307,162.73 | 114,199,793.34 | 27,967,001.62 |
Anticipated liabilities | 3,372,553.84 | 505,883.08 | 6,347,809.40 | 1,161,300.00 |
Deferred earning | 3,610,875.25 | 558,241.49 | 3,674,964.26 | 551,244.65 |
Change in fair value | 5,433,747.37 | 815,062.11 | 1,079,130.19 | 161,869.53 |
Tax differences under new lease criteria | 1,316,989.65 | 195,214.63 | 274,185.93 | 43,127.01 |
Accrued and unpaid land tax | 20,133,488.43 | 5,033,372.11 | ||
Reserved expense | 22,640,219.20 | 3,396,032.88 | 8,640,219.18 | 1,296,032.88 |
Total | 1,156,897,551.04 | 220,060,976.88 | 1,084,334,394.31 | 214,123,733.00 |
(2) Non-deducted deferred income tax liabilities
In RMB
Item | Closing balance | Opening balance | ||
Taxable temporary difference | Deferred income tax liabilities | Taxable temporary difference | Deferred income tax liabilities | |
Change in fair value | 4,188,015,507.12 | 1,046,924,956.27 | 4,199,023,889.76 | 1,049,649,013.70 |
Acquire premium to form inventory | 1,535,605.47 | 383,901.37 | 1,535,605.47 | 383,901.37 |
Estimated gross margin when Fangda Town records income, but does not reach the taxable income level | 38,783,686.70 | 9,695,921.68 | 31,539,658.09 | 7,884,914.52 |
Rental income | 32,671,966.71 | 8,167,991.68 | 34,856,116.84 | 8,714,029.21 |
Total | 4,261,006,766.00 | 1,065,172,771.00 | 4,266,955,270.16 | 1,066,631,858.80 |
(3) Net deferred income tax assets or liabilities listed
In 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 | 220,060,976.88 | 214,123,733.00 | ||
Deferred income tax liabilities | 1,065,172,771.00 | 1,066,631,858.80 |
(4) Details of unrecognized deferred income tax assets
In RMB
Item | Closing balance | Opening balance |
Deductible temporary difference | 146,089.64 | 554,677.54 |
Deductible loss | 16,177,447.74 | 10,345,101.90 |
Total | 16,323,537.38 | 10,899,779.44 |
(5) Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year | Closing amount | Opening amount | Remarks |
2022 | 1,233,589.22 | ||
2023 | 4,575,983.46 | 4,575,983.46 | |
2024 | 1,276,235.76 | 1,276,235.76 | |
2025 | 213,129.83 | 213,129.83 | |
2026 | 2,355,213.17 | 3,046,163.63 | |
2027 | 7,756,885.52 | ||
Total | 16,177,447.74 | 10,345,101.90 |
29. Other non-current assets
In RMB
Item | Closing balance | Opening balance | ||||
Remaining book value | Impairment provision | Book value | Remaining book value | Impairment provision | Book value | |
Contract assets | 105,183,978.15 | 5,709,693.38 | 99,474,284.77 | 72,288,658.32 | 7,952,729.45 | 64,335,928.87 |
Prepaid house and equipment amount | 73,077,190.00 | 0.00 | 73,077,190.00 | 35,693,402.77 | 0.00 | 35,693,402.77 |
Certificate of deposit | 316,929,580.18 | 0.00 | 316,929,580.18 | 306,738,886.82 | 0.00 | 306,738,886.82 |
Others | 2,005,361.70 | 0.00 | 2,005,361.70 | 1,088,296.93 | 0.00 | 1,088,296.93 |
Total | 497,196,110.03 | 5,709,693.38 | 491,486,416.65 | 415,809,244.84 | 7,952,729.45 | 407,856,515.39 |
30. Short-term borrowings
(1) Classification of short-term borrowings
In RMB
Item | Closing balance | Opening balance |
Loan by pledge | 58,450,232.49 | |
Guarantee loan | 120,136,861.08 | 10,013,291.67 |
Credit borrow | 300,247,500.00 | 302,354,444.46 |
Discount borrowing of acceptance bills | 797,889,951.95 | 916,656,430.03 |
Factoring loan of accounts receivable | 59,903,587.53 | |
Guarantee and pledge loan | 40,060,622.22 | |
Total | 1,318,238,522.78 | 1,287,474,398.65 |
Other notes: among the guaranteed loans at the end of the period, the amount of RMB80,093,194.44 was guaranteed by thecompany for the subsidiary, Dajian Technology Co., Ltd; The amount of RMB30,031,166.64 is guaranteed by the company for thesubsidiary Fangda Zhiyuan Technology Co., Ltd; The amount of RMB10,012,500.00 is guaranteed by the company for itssubsidiary Yunzhu Technology Co., Ltd. The Company and Shenzhen Hi-tech Investment and Financing Guarantee Co., Ltd.provide guarantee for the guarantee and pledge loan at the end of the period for the subsidiary party Dajian Technology Co., Ltd.,and the subsidiary party Dajian Technology Co., Ltd. provides pledge guarantee with its intellectual property right "unitaryporcelain plate curtain wall".
31. Derivative financial liabilities
In RMB
Item | Closing balance | Opening balance |
Forward foreign exchange contract | 293,400.00 | 11,871.20 |
Total | 293,400.00 | 11,871.20 |
32. Notes payable
In RMB
Type | Closing balance | Opening balance |
Commercial acceptance | 44,531,921.12 | 185,747,490.66 |
Bank acceptance | 690,358,287.44 | 663,697,808.43 |
Total | 734,890,208.56 | 849,445,299.09 |
At the end of the period, the total amount of bills payable due and unpaid was RMB1,622,493.59 , all of which werecommercial acceptance bills. As a result of the supplier's failure to apply for payment to the bank in time, the payment had been fullypaid as of the reporting date.
33. Account payable
(1) Account payable
In RMB
Item | Closing balance | Opening balance |
Account repayable and engineering repayable | 1,259,574,096.29 | 942,689,466.48 |
Construction payable | 44,523,769.88 | 58,406,046.64 |
Payable installation and implementation fees | 394,228,364.88 | 327,879,727.83 |
Others | 19,710,144.73 | 14,148,245.02 |
Total | 1,718,036,375.78 | 1,343,123,485.97 |
(2) Significant payables aging more than 1 year
In RMB
Item | Closing balance | Reason |
Supplier 1 | 15,317,539.09 | Not mature |
Supplier 2 | 7,737,332.29 | Not mature |
Supplier 3 | 6,850,214.13 | Not mature |
Supplier 4 | 3,768,913.36 | Not mature |
Supplier 5 | 2,792,406.87 | Not mature |
Total | 36,466,405.74 |
34. Prepayment received
(1) Prepayment received
In RMB
Item | Closing balance | Opening balance |
Rental | 1,439,653.84 | 1,280,482.93 |
Total | 1,439,653.84 | 1,280,482.93 |
35. Contract liabilities
In RMB
Item | Closing balance | Opening balance |
Project funds collected in advance | 194,354,649.37 | 172,696,504.61 |
Real estate sales payment | 586,105.50 | 4,082,802.11 |
Material loan | 12,114,464.00 | 2,485,989.04 |
Others | 938,452.68 | 921,581.39 |
Total | 207,993,671.55 | 180,186,877.15 |
The amount and reason for the significant change in the book value during the reporting period
In RMB
Item | Change | Reason |
Project funds collected in advance | 21,658,144.76 | Mainly due to the increase in advance payment of engineering contract |
Total | 21,658,144.76 | —— |
The Company needs to comply with the disclosure requirements of the real estate industry in the Guidelines for the Self-disciplineand Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.Payment received from top 5 presales projects:
There are no pre-sale projects in this period.
36. Employees' wage payable
(1) Employees' wage payable
In RMB
Item | Opening balance | Increase | Decrease | Closing balance |
1. Short-term remuneration | 68,789,749.61 | 411,415,730.95 | 413,416,046.11 | 66,789,434.45 |
2. Retirement pension program-defined contribution plan | 154,394.34 | 20,170,059.33 | 20,010,024.21 | 314,429.46 |
3. Dismiss compensation | 126,870.00 | 1,324,707.47 | 1,404,577.47 | 47,000.00 |
Total | 69,071,013.95 | 432,910,497.75 | 434,830,647.79 | 67,150,863.91 |
(2) Short-term remuneration
In RMB
Item | Opening balance | Increase | Decrease | Closing balance |
1. Wage, bonus, allowance and subsidies | 67,487,743.92 | 376,634,399.71 | 379,126,177.79 | 64,995,965.84 |
2. Employee welfare | 373,264.20 | 13,580,523.11 | 13,477,883.19 | 475,904.12 |
3. Social insurance | 47,164.22 | 10,167,062.16 | 9,881,922.78 | 332,303.60 |
Including: medical insurance | 41,419.12 | 7,322,077.28 | 7,084,133.22 | 279,363.18 |
Labor injury insurance | 3,048.20 | 553,972.56 | 550,637.05 | 6,383.71 |
Breeding insurance | 2,696.90 | 828,506.32 | 784,646.51 | 46,556.71 |
Medical insurance | 561,696.00 | 561,696.00 | ||
Unemployment insurance | 900,810.00 | 900,810.00 | ||
4. Housing fund | 77,242.00 | 9,484,807.80 | 9,456,440.84 | 105,608.96 |
5. Labor union budget and staff education fund | 569,442.50 | 1,303,539.11 | 1,328,622.51 | 544,359.10 |
6. Short-term paid leave | 234,892.77 | 100,400.06 | 335,292.83 | |
7. Short-term profit share program | 144,999.00 | 144,999.00 | ||
Total | 68,789,749.61 | 411,415,730.95 | 413,416,046.11 | 66,789,434.45 |
(3) Defined contribution plan
In RMB
Item | Opening balance | Increase | Decrease | Closing balance |
1. Basic pension | 150,523.04 | 19,551,759.72 | 19,395,610.38 | 306,672.38 |
2. Unemployment insurance | 3,871.30 | 618,299.61 | 614,413.83 | 7,757.08 |
Total | 154,394.34 | 20,170,059.33 | 20,010,024.21 | 314,429.46 |
37. Taxes payable
In RMB
Item | Closing balance | Opening balance |
VAT | 14,657,864.98 | 7,130,265.98 |
Enterprise income tax | 28,092,096.58 | 32,790,801.61 |
Personal income tax | 1,663,123.30 | 1,525,425.02 |
City maintenance and construction tax | 1,651,960.05 | 1,153,514.56 |
Land using tax | 256,490.15 | 257,316.97 |
Property tax | 1,072,014.83 | 1,133,817.11 |
Education surtax | 805,376.76 | 582,762.56 |
Local education surtax | 397,447.79 | 246,199.28 |
Consumption service tax | 680,127.01 | |
Land VAT | 36,201,588.58 | 22,186,857.45 |
Others | 349,241.06 | 273,686.68 |
Total | 85,827,331.09 | 67,280,647.22 |
38. Other payables
In RMB
Item | Closing balance | Opening balance |
Other payables | 113,425,377.70 | 126,903,098.08 |
Total | 113,425,377.70 | 126,903,098.08 |
(1) Other payables
1) Other payables presented by nature
In RMB
Item | Closing balance | Opening balance |
Performance and quality deposit | 44,484,884.33 | 47,863,587.46 |
Deposit | 19,901,002.35 | 20,376,442.13 |
Reserved expense | 5,871,887.95 | 4,048,028.82 |
Others | 43,167,603.07 | 54,615,039.67 |
Total | 113,425,377.70 | 126,903,098.08 |
(2) Significant payables aging more than 1 year
In RMB
Item | Closing balance | Reason |
Shenzhen Yikang Real Estate Co. Ltd. | 25,305,047.71 | Payment paid as agreed in the contract |
Total | 25,305,047.71 |
39. Non-current liabilities due within 1 year
In RMB
Item | Closing balance | Opening balance |
Long-term loans due within 1 year | 72,037,200.00 | 65,634,120.55 |
Lease liabilities due within one year | 11,741,447.06 | 12,784,437.21 |
Total | 83,778,647.06 | 78,418,557.76 |
40. Other current liabilities
In RMB
Item | Closing balance | Opening balance |
Unterminated notes receivable | 20,093,677.84 | 25,877,995.14 |
Substituted money on VAT | 28,039,520.65 | 22,220,366.63 |
Total | 48,133,198.49 | 48,098,361.77 |
41. Long-term borrowings
(1) Classification of long-term borrowings
In RMB
Item | Closing balance | Opening balance |
Guaranteed and mortgage loans | 444,204,672.22 | 467,742,011.11 |
Guarantee, mortgage and pledge loan | 891,332,527.78 | 931,392,109.44 |
Less: Long-term loans due within 1 year | 72,037,200.00 | 65,634,120.55 |
Total | 1,263,500,000.00 | 1,333,500,000.00 |
Notes to classification of long-term borrowings:
The pledge in the above-mentioned guarantee, mortgage and pledge loans is pledged by the 99% equity of the subsidiary FangdaReal Estate held by the Company, the 1% equity of the subsidiary Fangda Real Estate held by the subsidiary Hongjun InvestmentCompany and the rent receivable of the self-owned Dacheng rental property; The above guarantees and mortgage loans areguaranteed by the Company and its subsidiary Fangda Real Estate, and the subsidiary Fangda Property Company providesmortgage guarantees for part of the property of Fangda Property Company in Dacheng.Other notes, including interest rate range: the interest rate period of long-term loans is 3%-7%.
42. Lease liabilities
In RMB
Item | Closing balance | Opening balance |
Lease payments | 19,363,493.20 | 33,957,735.57 |
Less: unrecognized financing expenses | 714,589.59 | 2,021,205.05 |
Less: lease liabilities due within one year | 11,741,447.06 | 12,784,437.21 |
Total | 6,907,456.55 | 19,152,093.31 |
43. Long-term payables
In RMB
Item | Closing balance | Opening balance |
Long-term payable | 197,640,219.18 | 183,640,219.18 |
Total | 197,640,219.18 | 183,640,219.18 |
(1) Long term accounts payable listed by nature
In RMB
Item | Closing balance | Opening balance |
Disposal of equity repurchase | 197,640,219.18 | 183,640,219.18 |
Others:
See Section X, IX, Equity in other entities, 1. Equity in subsidiaries (2) Important non-wholly-owned subsidiaries for details of thedisposal of equity repurchase funds.
44. Anticipated liabilities
In RMB
Item | Closing balance | Opening balance | Reason |
Pending lawsuit | 2,091,286.00 | ||
Product quality warranty | 3,108,521.87 | 4,256,523.40 | Product quality warranty |
Loss contract to be executed | 264,031.97 | ||
Total | 3,372,553.84 | 6,347,809.40 |
45. Deferred earning
In RMB
Item | Opening balance | Increase | Decrease | Closing balance | Reason |
Government subsidy | 9,566,525.60 | 566,645.16 | 8,999,880.44 | See the following table | |
Total | 9,566,525.60 | 566,645.16 | 8,999,880.44 | -- |
Items involving government subsidies:
In 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 |
Railway transport screen door controlling system and information transmission technology | 39,845.21 | 18,904.32 | 20,940.89 | Assets-related | ||||
Major investment project prize from Industry and Trade Development Division of Dongguan Finance Bureau | 1,509,524.30 | 57,142.80 | 1,452,381.50 | Assets-related | ||||
Distributed PV power generation project subsidy sponsored by Dongguan Reform and Development Commission | 343,750.25 | 24,999.96 | 318,750.29 | Assets-related | ||||
Subsidized land transfer | 169,827.59 | 3,725.64 | 166,101.95 | Assets-related | ||||
Special subsidy for industrial transformation, upgrading and development | 766,666.65 | 80,000.04 | 686,666.61 | Assets-related | ||||
Enterprise informationization subsidy project of | 372,000.00 | 48,000.00 | 324,000.00 | Assets-related |
Shenzhen Small and Medium Enterprise Service Agency | ||||||||
National Industry Revitalization and Technology Renovation Project fund | 5,377,983.50 | 307,728.60 | 5,070,254.90 | Assets-related | ||||
Subsidy for new plant | 986,928.10 | 26,143.80 | 960,784.30 | Assets-related | ||||
Total | 9,566,525.60 | 566,645.16 | 8,999,880.44 |
46. Capital share
In RMB
Opening balance | Change (+,-) | Closing balance | |||||
Issued new shares | Bonus shares | Transferred from reserves | Others | Subtotal | |||
Total of capital shares | 1,073,874,227.00 | 1,073,874,227.00 |
47. Capital reserve
In RMB
Item | Opening balance | Increase | Decrease | Closing balance |
Capital premium (share capital premium) | 10,005,491.05 | 10,005,491.05 | ||
Other capital reserves | 1,454,097.35 | 1,454,097.35 | ||
Total | 11,459,588.40 | 11,459,588.40 |
48. Other miscellaneous income
In 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 | Less: amount written into other gains and transferred into | Less: Income tax expenses | After-tax amount attributed to the parent | After-tax amount attributed to minority shareholders |
gain/loss in previous terms | gain/loss in previous terms | |||||||
I. Other comprehensive income that will not be subsequently reclassified into profit and loss | -14,565,719.78 | -2,211,678.79 | -552,919.70 | -1,658,759.09 | -16,224,478.87 | |||
Fair value change of investment in other equity tools | -14,565,719.78 | -2,211,678.79 | -552,919.70 | -1,658,759.09 | -16,224,478.87 | |||
2. Other misc. incomes that will be re-classified into gain and loss | 49,891,591.56 | 2,256,960.90 | 4,789,977.21 | -910,230.36 | -1,680,395.90 | 57,609.95 | 48,211,195.66 | |
Cash flow hedge reserve | 926,186.62 | -561,911.07 | -84,286.65 | -477,624.42 | 448,562.20 | |||
Translation difference of foreign exchange statement | -1,391,190.47 | 1,295,939.38 | 1,238,329.43 | 57,609.95 | -152,861.04 | |||
Investment real estate measured at fair value | 50,356,595.41 | 1,522,932.59 | 4,789,977.21 | -825,943.71 | -2,441,100.91 | 47,915,494.50 | ||
Other miscellaneous income | 35,325,871.78 | 45,282.11 | 4,789,977.21 | -1,463,150.06 | -3,339,154.99 | 57,609.95 | 31,986,716.79 |
49. Surplus reserves
In RMB
Item | Opening balance | Increase | Decrease | Closing balance |
Statutory surplus reserves | 79,324,940.43 | 79,324,940.43 | ||
Total | 79,324,940.43 | 79,324,940.43 |
50. Retained profit
In RMB
Item | Current period | Last period |
Adjustment on retained profit of previous period | 4,324,055,259.33 | 4,215,005,541.52 |
Total of retained profit at beginning of year adjusted (+ for increase, - for decrease) | 2,837,784.25 | |
Retained profit adjusted at beginning of year | 4,324,055,259.33 | 4,217,843,325.77 |
Plus: Net profit attributable to owners of the parent | 282,933,854.32 | 222,168,142.53 |
Less: Statutory surplus reserves | 885,309.59 | |
Common share dividend payable | 53,693,711.35 | |
Others | 115,070,899.38 | |
Closing retained profit | 4,553,295,402.30 | 4,324,055,259.33 |
51. Operational revenue and costs
In RMB
Item | Amount occurred in the current period | Occurred in previous period | ||
Income | Cost | Income | Cost | |
Main business | 3,664,169,293.83 | 2,880,210,673.00 | 3,409,535,038.10 | 2,737,323,045.81 |
Other businesses | 182,806,654.61 | 37,543,294.52 | 148,189,359.44 | 23,977,511.67 |
Total | 3,846,975,948.44 | 2,917,753,967.52 | 3,557,724,397.54 | 2,761,300,557.48 |
Is the lower of the net profit before and after deducting the non recurring profit and loss negative
□ Yes ? No
Income information:
In RMB
Contract classification | Segment 1-curtain wall | Segment 2 - rail transit division | Segment 3 - real estate segment | Segment 4 - new energy | Segment 5 - other segments | Total |
Type of product | 2,877,126,181.59 | 564,551,749.10 | 369,529,923.55 | 19,707,669.06 | 16,060,425.14 | 3,846,975,948.44 |
Including: | ||||||
Curtain wall system and materials | 2,877,126,181.59 | 2,877,126,181.59 | ||||
Subway screen door and service | 564,551,749.10 | 564,551,749.10 | ||||
Real estate sales | 369,529,923.55 | 369,529,923.55 | ||||
PV power generation products | 19,707,669.06 | 19,707,669.06 | ||||
Others | 16,060,425.14 | 16,060,425.14 | ||||
Total | 2,877,126,181.59 | 564,551,749.10 | 369,529,923.55 | 19,707,669.06 | 16,060,425.14 | 3,846,975,948.44 |
Information related to performance obligations:
For curtain wall materials, real estate and other commodity sales transactions, the Company completes the performanceobligations when the customer obtains the control of the relevant commodities; for providing building curtain wall, Metro screendoor design, production and installation and other service transactions, the Company confirms the completed performanceobligations according to the performance progress during the whole service period. The contract price of the Company is usuallydue within one year, and there is no significant financing component.Information related to the transaction price allocated to the remaining performance obligations:
The amount of revenue corresponding to the performance obligations that have been signed, but not yet performed or not yetperformed at the end of the reporting period is 7,510,199,435.96 yuan, of which 3,650,605,117.88 yuan is expected to berecognized in 2023, and 3,015,790,748.80 yuan is expected to be recognized in 2024, 843,803,569.28 yuan is expected to berecognized in 2025 and beyond.Others:
The Company needs to comply with the disclosure requirements of the real estate industry in the Guidelines for the Self-disciplineand Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.Top-5 projects in terms of income received and recognized in the reporting period:
In RMB
No. | Project name | Balanace |
1 | Fangda Town | 257,831,878.77 |
2 | Nanchang Fangda Center | 42,475,581.08 |
52. Taxes and surcharges
In RMB
Item | Amount occurred in the current period | Occurred in previous period |
City maintenance and construction tax | 7,679,241.19 | 6,814,244.49 |
Education surtax | 5,585,461.79 | 4,880,262.78 |
Property tax | 12,837,232.82 | 6,799,263.40 |
Land using tax | 1,365,653.05 | 1,642,629.16 |
Stamp tax | 2,237,929.20 | 2,798,854.45 |
Land VAT | 37,137,187.96 | 49,306,779.63 |
Others | 110,732.47 | 84,940.08 |
Total | 66,953,438.48 | 72,326,973.99 |
53. Sales expense
In RMB
Item | Amount occurred in the current period | Occurred in previous period |
Labor costs | 27,481,424.15 | 26,549,119.18 |
Sales agency fee | 7,583,116.62 | 9,750,617.96 |
Entertainment expense | 4,254,479.42 | 4,798,777.96 |
Travel expense | 1,280,007.65 | 1,662,959.19 |
Advertisement and promotion fee | 2,044,298.44 | 1,673,817.72 |
Rental | 325,598.09 | 361,878.16 |
Depreciation and amortization | 708,646.17 | 1,021,131.68 |
Office costs | 704,950.67 | 1,040,668.24 |
Material consumption | 456,870.79 | 412,933.68 |
Warranty expense | 6,721,123.19 | 9,276,474.69 |
Others | 3,409,647.82 | 3,329,236.27 |
Total | 54,970,163.01 | 59,877,614.73 |
54. Management expense
In RMB
Item | Amount occurred in the current period | Occurred in previous period |
Labor costs | 111,950,198.78 | 106,520,063.46 |
Maintenance costs | 286,605.47 | 835,325.05 |
Agencies | 8,669,931.10 | 20,495,270.86 |
Depreciation and amortization | 14,008,652.97 | 13,947,605.32 |
Office expense | 3,458,124.24 | 5,510,310.38 |
Entertainment expense | 5,239,230.46 | 4,984,309.28 |
Rental | 2,162,427.23 | 1,911,070.57 |
Lawsuit | 812,611.39 | 540,860.07 |
Travel expense | 1,856,940.17 | 2,208,994.72 |
Property management fee | 1,298,685.56 | 1,836,776.97 |
Water and electricity | 850,541.99 | 925,114.24 |
Material consumption | 431,080.40 | 1,161,107.24 |
Others | 6,113,309.07 | 8,566,850.67 |
Total | 157,138,338.83 | 169,443,658.83 |
55. R&D cost
In RMB
Item | Amount occurred in the current period | Occurred in previous period |
Labor costs | 87,517,101.66 | 86,627,499.60 |
Material costs | 54,424,197.58 | 49,445,691.44 |
Agencies | 9,786,533.05 | 5,384,263.67 |
Depreciation costs | 1,475,184.54 | 1,487,661.18 |
Amortization of intangible assets | 1,084,611.53 | 1,003,289.28 |
Travel expense | 413,442.72 | 476,622.69 |
Rental | 1,302.17 | 55,053.80 |
Others | 7,110,539.77 | 8,493,500.72 |
Total | 161,812,913.02 | 152,973,582.38 |
56. Financial expense
In RMB
Item | Amount occurred in the current period | Occurred in previous period |
Interest expense | 100,581,343.99 | 106,019,889.08 |
Including: interest expense of lease liabilities | 1,188,864.62 | 931,218.41 |
Less: interest capitalization | 4,297,120.98 | |
Less: discount government subsidies | 308,700.00 | 3,853,900.00 |
Less: Interest income | 23,892,574.84 | 16,575,629.28 |
Net interest expenditure | 76,380,069.15 | 81,293,238.82 |
Exchange net loss | -6,670,099.09 | 1,933,113.39 |
Discount expense | 23,001,819.09 | 13,489,673.65 |
Commission charges and others | 3,990,006.19 | 6,285,570.07 |
Total | 96,701,795.34 | 103,001,595.93 |
57. Other gains
In RMB
Source | Amount occurred in the current period | Occurred in previous period |
Government subsidies related to deferred income (related to assets) | 566,645.16 | 506,906.57 |
Government subsidies directly included in current profits and losses (related to income) | 13,047,310.70 | 12,813,082.60 |
Other items related to daily activities and included in other income | 295,628.71 | 712,949.92 |
Total | 13,909,584.57 | 14,032,939.09 |
58. Investment income
In RMB
Item | Amount occurred in the current period | Occurred in previous period |
Gains from long-term equity investment measured by equity | -249,904.00 | -683,431.81 |
Investment income of trading financial assets during the holding period | 87,532.09 | 72,364.60 |
Investment income from disposal of trading financial assets | 4,596,589.23 | 5,487,895.02 |
Financial assets derecognised as a result of amortized cost | -3,778,070.96 | -6,336,161.86 |
Income from derecognition of other financial assets measured at fair value | -150,858.55 | |
Interest income from external financial assistance | 5,680,666.66 | |
Total | 6,185,954.47 | -1,459,334.05 |
59. Income from fair value fluctuation
In RMB
Source of income from fluctuation of fair value | Amount occurred in the current period | Occurred in previous period |
Investment real estate measured at fair | -10,095,973.89 | 20,921,813.65 |
value | ||
Other non-current financial assets | -17,973.56 | 2,500,222.08 |
Total | -10,113,947.45 | 23,422,035.73 |
60. Credit impairment loss
In RMB
Item | Amount occurred in the current period | Occurred in previous period |
Bad debt loss of other receivables | -179,081.17 | 1,421,794.98 |
Bad debt loss of notes receivable | 304,547.33 | -2,584,709.89 |
Bad debt loss of account receivable | -34,761,191.07 | -6,761,080.52 |
Total | -34,635,724.91 | -7,923,995.43 |
61. Assets impairment loss
In RMB
Item | Amount occurred in the current period | Occurred in previous period |
Contract asset impairment loss | -35,575,418.55 | 7,181,339.41 |
Total | -35,575,418.55 | 7,181,339.41 |
62. Assets disposal gains
In RMB
Source | Amount occurred in the current period | Occurred in previous period |
Gain or loss on disposal of fixed assets, construction in progress, assets with right to use and intangible assets not classified as held for sale | -1,421,880.09 | -2,291,048.05 |
Including: Fixed assets | -1,460,480.59 | -2,291,048.05 |
Use right assets | 9,021.90 | |
Total | -1,421,880.09 | -2,291,048.05 |
63. Non-business income
In RMB
Item | Amount occurred in the current period | Occurred in previous period | Amount accounted into the current accidental gain/loss |
Penalty income | 315,404.30 | 420,185.19 | 315,404.30 |
Compensation received | 576,478.89 | 31,106.99 | 576,478.89 |
Payable account not able to be paid | 1,089,259.90 | ||
Others | 511,504.70 | 668,628.48 | 511,504.70 |
Total | 1,403,387.89 | 2,209,180.56 | 1,403,387.89 |
64. Non-business expenses
In RMB
Item | Amount occurred in the | Occurred in previous | Amount accounted into |
current period | period | the current accidental gain/loss | |
Donation | 3,173,265.20 | 3,379,215.24 | 3,153,827.24 |
Loss from retirement os damaged non-current assets | 279,036.49 | 324,982.26 | 279,036.49 |
Penalty and overdue fine | 282,440.37 | 71,556.64 | 282,440.37 |
Others | 433,216.03 | 2,311,621.57 | 452,653.99 |
Total | 4,167,958.09 | 6,087,375.71 | 4,167,958.09 |
65. Income tax expenses
(1) Details about income tax expense
In RMB
Item | Amount occurred in the current period | Occurred in previous period |
Income tax expenses in this period | 47,007,994.88 | 52,589,592.74 |
Deferred income tax expenses | -5,933,164.84 | -11,504,044.01 |
Total | 41,074,830.04 | 41,085,548.73 |
(2) Adjustment process of accounting profit and income tax expense
In RMB
Item | Amount occurred in the current period |
Total profit | 327,229,330.08 |
Income tax expenses calculated based on the legal (or applicable) tax rates | 81,807,332.52 |
Impacts of different tax rates applicable for some subsidiaries | -22,786,014.09 |
Impacts of income tax before adjustment | -2,369,663.20 |
Impacts of non-deductible cost, expense and loss | 2,318,122.00 |
Deductible temporary difference and deductible loss of unrecognized deferred income tax assets | 1,130,337.63 |
Additional deduction of R&D expense | -21,236,256.97 |
Profit and loss of associates and joint ventures calculated using the equity method | 62,476.00 |
Effect of tax rate change on deferred income tax | -134,013.60 |
Impact of deductible losses of deferred income tax assets recognized in the previous period exceeding the recoverable period | 2,282,509.75 |
Income tax expenses | 41,074,830.04 |
66. Other miscellaneous income
See Note VII 48.
67. Notes to the cash flow statement
(1) Other cash inflow related to operation
In RMB
Item | Amount occurred in the current period | Occurred in previous period |
Interest income | 10,526,773.48 | 9,836,742.46 |
Subsidy income | 8,523,267.80 | 17,767,508.18 |
Net amount of margin such as Bill of exchange | 72,723,783.94 | |
Retrieving of bidding deposits | 41,910,159.36 | 13,479,226.26 |
Other operating accounts | 8,832,476.97 | 6,245,160.75 |
Total | 69,792,677.61 | 120,052,421.59 |
(2) Other cash paid related to operation
In RMB
Item | Amount occurred in the current period | Occurred in previous period |
Oocket expenses | 129,019,737.46 | 149,859,536.10 |
Bidding deposit paid | 41,669,236.99 | 32,427,745.97 |
Other trades | 31,243,643.80 | 34,211,196.04 |
Net draft deposit net paid | 16,983,599.71 | |
Total | 218,916,217.96 | 216,498,478.11 |
(3) Other cash paid related to investment activities
In RMB
Item | Amount occurred in the current period | Occurred in previous period |
Investment commission | 49,940.00 | 50,000.00 |
Total | 49,940.00 | 50,000.00 |
(4) Other cash received related to financing
In RMB
Item | Amount occurred in the current period | Occurred in previous period |
Cash received from disposal of equity of Fangda Zhiyuan Technology Co., Ltd | 0.00 | 175,000,000.00 |
Total | 0.00 | 175,000,000.00 |
(5) Other cash paid related to financing activities
In RMB
Item | Amount occurred in the current period | Occurred in previous period |
Financing fee | 1,661,150.00 | 2,739,530.00 |
Principal and interest of lease liabilities | 13,317,433.68 | 6,684,172.76 |
Loan deposit | 42,780,000.00 | 32,448,838.96 |
Certificate of deposit | 300,000,000.00 | |
Acquisition of equity of Yunzhu Technology under the same control | 125,388,100.00 | |
Subsidiary IPO expenses | 2,064,871.00 | |
Total | 59,823,454.68 | 467,260,641.72 |
68. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB
Supplementary information | Amount of the Current Term | Amount of the Previous Term |
1. Net profit adjusted to cash flow related to business operations | ||
Net profit | 286,154,500.04 | 226,798,607.02 |
Plus: Asset impairment provision | 70,211,143.46 | 742,656.02 |
Fixed asset depreciation, gas and petrol depreciation, production goods depreciation | 30,069,792.08 | 26,819,528.89 |
Depreciation of right to use assets | 13,157,906.36 | 6,953,684.75 |
Amortization of intangible assets | 4,445,952.55 | 4,277,899.14 |
Amortization of long-term amortizable expenses | 3,689,196.23 | 2,128,336.88 |
Loss from disposal of fixed assets, intangible assets, and other long-term assets ("-" for gains) | 1,421,880.09 | 2,291,048.05 |
Loss from fixed asset discard ("-" for gains) | 279,036.49 | 324,982.26 |
Loss from fair value fluctuation ("-" for gains) | 10,113,947.45 | -23,422,035.73 |
Financial expenses ("-" for gains) | 91,838,168.41 | 120,641,621.99 |
Investment losses ("-" for gains) | -10,114,883.98 | 1,459,334.05 |
Decrease of deferred income tax asset ("-" for increase) | -5,937,243.88 | 41,347,864.62 |
Increase of deferred income tax asset ("-" for increase) | -1,459,087.80 | -29,843,820.61 |
Decrease of inventory ("-" for increase) | 22,748,527.66 | 48,193,389.26 |
Decrease of operational receivable items ("-" for increase) | -578,812,306.16 | -132,061,193.74 |
Increase of operational receivable items ("-" for decrease) | 300,388,703.00 | -432,800,983.13 |
Others | -16,983,599.70 | 72,723,783.99 |
Cash flow generated by business operations, net | 221,211,632.30 | -63,425,296.29 |
2. Major investment and financing activities with no cash involved | ||
Debt transferred to assets | ||
Convertible corporate bonds due within one year | ||
Fixed assets under finance leases | ||
3. Net change in cash and cash equivalents: | ||
Balance of cash at period end | 783,677,929.06 | 892,251,071.59 |
Less: Initial balance of cash | 892,251,071.59 | 1,028,386,529.74 |
Add: Ending balance of cash equivalents |
Less: Ending balance of cash equivalents | ||
Net increase in cash and cash equivalents | -108,573,142.53 | -136,135,458.15 |
(2) Composition of cash and cash equivalents
In RMB
Item | Closing balance | Opening balance |
I. Cash | 783,677,929.06 | 892,251,071.59 |
Including: Cash in stock | 149.81 | 3,192.76 |
Bank savings can be used at any time | 776,383,701.29 | 875,884,674.10 |
Other monetary capital can be used at any time | 7,294,077.96 | 16,363,204.73 |
III. Balance of cash and cash equivalents at end of term | 783,677,929.06 | 892,251,071.59 |
69. Assets with restricted ownership or use rights
In RMB
Item | Closing book value | Reason |
Monetary capital | 455,076,287.44 | Various deposits |
Notes receivable | 24,546,342.15 | Bills endorsed or discounted but not yet due |
Fixed assets | 44,751,777.53 | Loan by pledge |
Account receivable | 42,800,680.80 | Loan by pledge |
Investment real estate | 3,293,733,474.51 | Loan by pledge |
Other non-current assets | 316,929,580.18 | Loan by pledge |
Equity pledge | 200,000,000.00 | 100% stake in Fangda Property Development held by the Company |
Total | 4,377,838,142.61 |
70. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Item | Closing foreign currency balance | Exchange rate | Closing RMB balance |
Monetary capital | 131,582,817.19 | ||
Including: USD | 4,630,654.71 | 6.9646 | 32,250,658.62 |
Euro | 4,759,925.67 | 7.4229 | 35,332,452.26 |
HK Dollar | 48,771,987.61 | 0.8933 | 43,567,909.51 |
INR | 41,495,142.46 | 0.0842 | 3,493,891.00 |
Vietnamese currency | 34,291,301.00 | 0.0003 | 10,111.14 |
SGD | 305,140.93 | 5.1831 | 1,581,575.95 |
AUD | 3,255,593.94 | 4.7138 | 15,346,218.71 |
Account receivable | 24,384,303.64 |
Including: USD | 2,656,421.44 | 6.9646 | 18,500,912.76 |
AUD | 778,976.33 | 4.7138 | 3,671,938.63 |
Vietnamese currency | 7,500,000,000.00 | 0.0003 | 2,211,452.25 |
Contract assets | 75,021,641.29 | ||
Including: USD | 6,108,518.01 | 6.9646 | 42,543,384.54 |
INR | 127,824,310.65 | 0.0842 | 10,762,806.93 |
Euro | 2,443,952.94 | 7.4229 | 18,141,218.27 |
SGD | 35,888.30 | 5.1831 | 186,012.64 |
AUD | 718,787.16 | 4.7138 | 3,388,218.91 |
Other receivables | 1,099,104.22 | ||
Including: USD | 100,523.98 | 6.9646 | 700,109.31 |
HK Dollar | 417,090.09 | 0.8933 | 372,574.06 |
AUD | 5,605.00 | 4.7138 | 26,420.85 |
Account payable | 11,869,247.80 | ||
Including: USD | 1,292,156.28 | 6.9646 | 8,999,351.63 |
HK Dollar | 39,477.89 | 0.8933 | 35,264.41 |
SGD | 10,393.70 | 5.1831 | 53,871.59 |
INR | 31,990,897.77 | 0.0842 | 2,693,633.59 |
AUD | 18,483.30 | 4.7138 | 87,126.58 |
Other payables | 411,422.71 | ||
Including: USD | 52,979.16 | 6.9646 | 368,978.66 |
INR | 424,450.00 | 0.0842 | 35,738.69 |
Vietnamese currency | 22,740,800.00 | 0.0003 | 6,705.36 |
(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
71. Hedging
Hedging items and related tools, qualitative and quantitative information about hedging risks:
Type | Hedged item | Hedging tools | Hedged risk |
Cash flow hedging | Aluminum material purchase forward transaction | Aluminum futures contract | The price of raw materials has risen, leading to an increase in expected transaction procurement costs; |
Forward foreign exchange transaction | Forward foreign exchange contract | The depreciation of foreign currency leads to the decrease of actual collection |
72. Government subsidy
(1) Government subsidy profiles
In RMB
Type | Amount | Item | Amount accounted into the current gain/loss |
Major investment project prize from Industry and Trade Development Division of Dongguan Finance Bureau | 1,452,381.50 | Deferred earning | 57,142.80 |
Distributed PV power generation project subsidy sponsored by Dongguan Reform and Development Commission | 318,750.29 | Deferred earning | 24,999.96 |
Subsidized land transfer | 166,101.95 | Deferred earning | 3,725.64 |
Special subsidy for industrial transformation, upgrading and development | 686,666.61 | Deferred earning | 80,000.04 |
National Industry Revitalization and Technology Renovation Project fund | 5,070,254.90 | Deferred earning | 307,728.60 |
Enterprise informationization subsidy project of Shenzhen Small and Medium Enterprise Service Agency | 324,000.00 | Deferred earning | 48,000.00 |
Railway transport screen door controlling system and information transmission technology | 20,940.89 | Deferred earning | 18,904.32 |
Energy saving and environmental protection metal curtain wall production technology transformation project | 960,784.30 | Deferred earning | 26,143.80 |
VAT rebated into revenue | 3,784,292.90 | Other gains | 3,784,292.90 |
Dongguan market development support subsidy | 223,901.27 | Other gains | 223,901.27 |
Reward of technology center | 1,000,000.00 | Other gains | 1,000,000.00 |
Employment subsidy | 2,415,528.14 | Other gains | 2,415,528.14 |
Childbearing subsidy | 84,997.68 | Other gains | 84,997.68 |
Dongguan R&D subsidy | 751,800.00 | Other gains | 751,800.00 |
Hi-tech enterprise development subsidy | 1,500,000.00 | Other gains | 1,500,000.00 |
Subsidy for increasing production of key enterprises in Nanchang | 200,000.00 | Other gains | 200,000.00 |
Nanchang Intellectual Property Advantage Demonstration Enterprise Award | 100,000.00 | Other gains | 100,000.00 |
Hong Kong SAR epidemic subsidy | 432,405.80 | Other gains | 432,405.80 |
Subsidy for high-tech enterprises' doubling support plan project | 200,000.00 | Other gains | 200,000.00 |
Dongguan revenue increment award | 68,672.57 | Other gains | 68,672.57 |
Special fund for the development of Shenzhen's independent innovation industry | 311,600.00 | Other gains | 311,600.00 |
Special subsidy for specialized and special new enterprises | 200,000.00 | Other gains | 200,000.00 |
Shenzhen City will reduce VAT subsidies for key groups | 1,048,450.00 | Other gains | 1,048,450.00 |
Discount subsidy | 308,700.00 | Financial expenses | 308,700.00 |
Others | 725,662.34 | Other gains | 725,662.34 |
Total | 22,355,891.14 | 13,922,655.86 |
(2) Government subsidy refund
□ Applicable ? Inapplicable
Note: The value-added tax is immediately refundable income, which is mainly attributed to the fact that Sun CorporationKechuangyuan Software belongs to a software company and enjoys the VAT rebate policy. Since the project will not form long-term assets, the Company will use it as a government subsidy related to income.
73. Leasing
(1) The Company as leasee
In RMB
Item | 2022 |
Short term lease expenses with simplified treatment included in current profit and loss | 29,463,492.40 |
Lease expenses of low value assets with simplified treatment included in current profit and loss (except short-term lease) | 166,869.77 |
Interest expense on lease liabilities | 1,188,864.62 |
Total cash outflow related to leasing | 40,801,108.35 |
(2) The Company is the leasor
Operating leaseA. Rental income
In RMB
Item | 2022 |
Rental income | 145,197,486.26 |
Including: income related to variable lease payments not included in the measurement of lease receipts | 224,362.02 |
B. Undiscounted lease receipts to be received in each of the five consecutive fiscal years after the balance sheet date, andthe total undiscounted lease receipts to be received in the remaining years
In RMB
Year | Amount |
2022 | 143,507,004.38 |
2023 | 99,878,509.89 |
2024 | 82,828,241.30 |
2025 | 36,864,929.12 |
2026 | 37,649,426.06 |
Total undiscounted lease receipts to be received after 2026 | 125,099,040.43 |
Including Within 1 year (inclusive) | 31,908,446.55 |
1-2 years | 18,384,979.57 |
2-3 years | 12,835,912.30 |
Over 3 years | 61,969,702.01 |
VIII. Change to Consolidation Scope
1. Change to the consolidation scope for other reasons
Change in the consolidation scope due to other reasons (such as new subsidiaries and liquidation ofsubsidiaries) and the situations:
In the change of the scope of consolidation in the current period, a new subsidiary was established:
Fangda Intelligent Manufacturing.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 | 98.66% | 1.34% | Incorporation |
Fangda Zhiyuan Technology | Shenzhen | Shenzhen | Production, processing and installation of subway screen doors | 83.10% | Incorporation | |
Fangda Jiangxi New Material | Nanchang | Nanchang | Prodution and sales of new-type materialsm composite materials and production of curtain walls | 75.00% | 25.00% | Incorporation |
Fangda Property | Shenzhen | Shenzhen | Real estate development and operation | 99.00% | 1.00% | Incorporation |
Fangda New Energy | Shenzhen | Shenzhen | Design and construction of PV power plants | 99.00% | 1.00% | Incorporation |
Fangda Chengdu Technology | Chengdu | Chengdu | Trusted processing of building curtain wall materials | 100.00% | Incorporation | |
Shihui International | Virgin Islands | Virgin Islands | Investment | 100.00% | Incorporation | |
Fangda Dongguan New Material | Dongguan | Dongguan | Installation and sales of building curtain walls | 100.00% | Incorporation | |
Fangda Property Management | Shenzhen | Shenzhen | Property management | 100.00% | Incorporation | |
Fangda Jiangxi Property Development | Nanchang | Nanchang | Real estate development and operation | 100.00% | Incorporation | |
Fangda Luxin New Energy | Pingxiang | Pingxiang | Design and construction of PV power plants | 100.00% | Incorporation | |
Fangda Xinjian New Energy | Nanchang | Nanchang | Design and construction of PV power plants | 100.00% | Incorporation | |
Fangda Dongguan New Energy | Dongguan | Dongguan | Design and construction of PV power plants | 100.00% | Incorporation | |
Kechuangyuan | Shenzhen | Shenzhen | Software development | 83.10% | Incorporati |
Software | on | |||||
Fangda Zhiyuan Technology Hong Kong | Hong Kong | Hong Kong | Metro screen door | 83.10% | Incorporation | |
Fangda Hongjun Investment | Shenzhen | Shenzhen | Investment | 98.00% | 2.00% | Incorporation |
Fangda Australia | Australia | Australia | Designing, manufacturing, and installation of curtain walls | 100.00% | Incorporation | |
Fangda Yunzhi | Shenzhen | Shenzhen | Technology development and sales; Invest in industry; Operation management of science and technology park | 100.00% | Incorporation | |
Chengda Curtain Wall Company | Chengdu | Chengdu | Building decoration and other construction industry | 100.00% | Incorporation | |
Fangda Southeast Asia | Vietnam | Vietnam | Designing, manufacturing, and installation of curtain walls | 100.00% | Incorporation | |
Fangda Shanghai Zhijian | Shanghai | Shanghai | Intelligent technology, new energy, automated technology | 30.00% | 70.00% | Incorporation |
Fangda Shanghai Jianzhi | Shanghai | Shanghai | Construction technology, intelligent technology, automation technology, design, production and installation of building curtain walls | 100.00% | Incorporation | |
Zhongrong Litai | Shenzhen | Shenzhen | Business service | 55.00% | Purchase | |
Fangda Investment | Shenzhen | Shenzhen | Project investment and investment consultancy | 99.00% | 0.52% | Incorporation |
Fangda Lifu Investment | Shenzhen | Shenzhen | Project investment and investment consultancy | 52.00% | Incorporation | |
Fangda Xunfu Investment | Shenzhen | Shenzhen | Project investment and investment consultancy | 100.00% | Incorporation | |
Fangda Jianke Hong Kong | Hong Kong | Hong Kong | Design, sale and installation of building curtain wall | 100.00% | Incorporation | |
Yunzhu Technology | Shenzhen | Shenzhen | Inspection, technical service and consultation of building safety and building energy saving system | 100.00% | Consolidation of entities under common control | |
Fangda Yunzhu Testing | Shenzhen | Shenzhen | Inspection, technical service and consultation of building safety and building energy saving system | 100.00% | Consolidation of entities under common control | |
General Metro Technology Co., Ltd | Singapore | Singapore | Production, processing and installation of subway screen doors | 83.10% | Incorporation | |
Fangda Zhiyuan Technology Wuhan | Wuhan | Wuhan | Production, processing and installation of subway screen doors | 83.10% | Incorporation | |
Fangda Zhiyuan Technology Nanchang | Nanchang | Nanchang | Production, processing and installation of subway screen doors | 83.10% | Incorporation |
Fangda Zhiyuan Technology Dongguan | Dongguan | Dongguan | Production, processing and installation of subway screen doors | 83.10% | Incorporation | |
Fangda Intelligent Manufacturing | Ganzhou | Ganzhou | Prodution and sales of new-type materialsm composite materials and production of curtain walls | 99.00% | 1.00% | Incorporation |
Others:
① Fangda Intelligent Manufacturing Co., Ltd., the registered capital subscribed by the Company and Fangda Hongjun InvestmentCo., Ltd. is RMB10 million. As of December 31, 2022, the total paid-in registered capital of each party is RMB500 million.
(2) Major non wholly-owned subsidiaries
In RMB
Company | Shareholding of minority shareholders | Profit and loss attributed to minority shareholders | Dividend to be distributed to minority shareholders | Interest balance of minority shareholders in the end of the period |
Zhongrong Litai | 45.00% | -55,240.33 | 48,354,525.24 | |
Fangda Zhiyuan Technology | 5.96% | 3,334,493.05 | 20,868,106.25 |
Note: In May 2021l the Company's subsidiaries Fangda Construction Technology Co., Ltd. and Jiangxi Fangda New Material Co.,Ltd. transfer 10.9375% of the equity of Fangda Zhiyuan Technology Co., Ltd. because the Company cannot unconditionally avoidperforming its contractual obligations by delivering cash or other financial assets, the Company recognizes the contractualobligations as financial liabilities, and accordingly does not recognize minority shareholders' equity.
(3) Financial highlights of major non wholly owned subsidiaries
In RMB
Company | Closing balance | Opening balance | ||||||||||
Current assets | Non-current assets | Total of assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total of assets | Current liabilities | Non-current liabilities | Total liabilities | |
Zhongrong Litai | 208,737,205.21 | 371,747.97 | 209,108,953.18 | 101,349,268.59 | 305,184.09 | 101,654,452.68 | 207,592,402.32 | 455,315.59 | 208,047,717.91 | 100,106,531.59 | 363,929.52 | 100,470,461.11 |
Fangda Zhiyuan Technology | 770,739,460.72 | 135,423,070.69 | 906,162,531.41 | 540,848,850.07 | 15,118,392.71 | 555,967,242.78 | 725,006,361.40 | 84,470,404.66 | 809,476,766.06 | 485,329,720.83 | 23,847,519.22 | 509,177,240.05 |
In RMB
Company | Amount occurred in the current period | Occurred in previous period | ||||||
Turnover | Net profit | Total of misc. | Business operation | Turnover | Net profit | Total of misc. | Business operation |
incomes | cash flows | incomes | cash flows | |||||
Zhongrong Litai | 110,091.74 | -122,756.30 | -122,756.30 | 56,529.04 | 284,747.73 | 15,133.28 | 15,133.28 | 87,201.58 |
Fangda Zhiyuan Technology | 564,551,749.10 | 53,861,759.06 | 54,601,158.86 | -14,231,720.29 | 534,310,567.88 | 78,123,193.66 | 77,400,836.63 | 28,889,669.10 |
2. Interests in joint ventures or associates
(1) Financial summary of insignificant joint ventures and associates
In RMB
Closing balance/amount occurred in this period | Opening balance/amount occurred in previous period | |
Joint venture: | ||
Total book value of investment | 54,969,042.14 | 55,218,946.14 |
Total shareholding | ||
Net profit | -249,904.00 | -683,431.81 |
--Total of misc. incomes | -249,904.00 | -683,431.81 |
Associate: | ||
Total shareholding |
X. Risks of Financial ToolsThe risks associated with the financial instruments of the Company arise from the various financial assetsand liabilities recognized by the Company in the course of its operations, including credit risks, liquidity risksand market risks.
The management objectives and policies of various risks related to financial instruments are governed bythe management of the Company. The operating management is responsible for daily risk management throughfunctional departments (for example, the Company's credit management department reviews the Company'scredit sales on a case-by-case basis). The internal audit department of the Company conducts daily supervisionof the implementation of the Company's risk management policies and procedures, and reports relevant findingsto the Company's audit committee in a timely manner.
The overall goal of the Company's risk management is to formulate risk management policies thatminimize the risks associated with various financial instruments without excessively affecting the Company'scompetitiveness and resilience.
1. Credit risk
Credit risk is caused by the failure of one party of a financial instrument in performing its obligations,causing the risk of financial loss for the other party. The credit risk of the Company mainly comes frommonetary capital, notes receivable, accounts receivable, other receivables, receivables financing, contract assets,etc. The credit risk of these financial assets comes from the default of the counterparties, and the maximum riskexposure is equal to the book amount of these instruments.The Company's money and funds are mainly deposited in the commercial banks and other financialinstitutions. The Company believes that these commercial banks have higher reputation and asset status andhave lower credit risk.For notes receivable, accounts receivable, other receivables, receivables financing and contract assets, theCompany sets relevant policies to control credit risk exposure. The Group set the credit line and term fordebtors according to their financial status, external rating, and possibility of getting third-party guarantee, creditrecord and other factors. The Group regularly monitors debtors' credit record. For those with poor credit record,the Group will send written payment reminders, shorten or cancel credit term to lower the general credit risk.
(1) Significant increases in credit risk
The credit risk of the financial instrument has not increased significantly since the initial confirmation. Indetermining whether the credit risk has increased significantly since the initial recognition, the Companyconsiders reasonable and evidenced information, including forward-looking information, that can be obtainedwithout unnecessary additional costs or effort. The Company determines the relative risk of default risk of thefinancial instrument by comparing the risk of default of the financial instrument on the balance sheet date withthe risk of default on the initial recognition date to assess the credit risk of the financial instrument from initialrecognition.
When one or more of the following quantitative and qualitative criteria are triggered, the Companybelieves that the credit risk of financial instruments has increased significantly: the quantitative criteria aremainly the probability of default in the remaining life of the reporting date increased by more than a certain
proportion compared with the initial recognition; the qualitative criteria are the major adverse changes in theoperation or financial situation of the major debtors, the early warning of customer list, etc.
(2) Definition of assets where credit impairment has occurred
In order to determine whether or not credit impairment occurs, the standard adopted by our company isconsistent with the credit risk management target for related financial instruments, and quantitative andqualitative indicators are considered.Major financial difficulties have occurred to the issuer or the debtor; Breach of contract by the debtor,such as payment of interest or default or overdue of principal; (B) The concession that the debtor would notmake under any other circumstances for economic or contractual considerations relating to the financialdifficulties of the debtor; The debtor is likely to be bankrupt or undertake other financial restructuring; Thefinancial difficulties of the issuer or debtor lead to the disappearance of the active market for the financial asset;To purchase or generate a financial asset at a substantial discount, which reflects the fact that a credit loss hasoccurred.Credit impairment in financial assets may be caused by a combination of multiple events, not necessarilyby events that can be identified separately.
(3) Expected credit loss measurement
Depending on whether there is a significant increase in credit risk and whether a credit impairment hasoccurred, the Company prepares different assets for a 12-month or full expected credit loss. The key parametersof expected credit loss measurement include default probability, default loss rate and default risk exposure.Taking into account the quantitative analysis and forward-looking information of historical statistics (such ascounterparty ratings, guaranty methods, collateral categories, repayment methods, etc.), the Companyestablishes the default probability, default loss rate and default risk exposure model.
Definition:
The probability of default refers to the possibility that the debtor will not be able to fulfil its obligation topay in the next 12 months or throughout the remaining period.
Breach Loss Rate means the extent of loss expected by the Company for breach risk exposure. Dependingon the type of counterparty, the manner and priority of recourse, and the different collateral, the default loss rateis also different. The default loss rate is the percentage of the risk exposure loss at the time of the default,calculated on the basis of the next 12 months or the entire lifetime.Exposure to default is the amount payable to the Company at the time of default in the next 12 months orthroughout the remaining life. Prospective information credit risks significantly increased and expected creditlosses were calculated. Through the analysis of historical data, the Company has identified the key economicindexes that affect the credit risk of each business type and the expected credit loss.
The largest credit risk facing the Group is the book value of each financial asset on the balance sheet. TheGroup makes no guarantee that may cause the Group credit risks.
Among the Group’s receivables, accounts receivable from top 5 customers account for 26.41% of the totalaccounts receivable (beginning of the period: 25.47%); among other receivables, other receivables from top 5customers account for 72.10% of the total other receivables (beginning of the period: 69.41%).
2. Liquidity risk
Liquidity risk is the risk of capital shortage when the Group needs to pay cash or settled with otherfinancial assets. The Company is responsible for the cash management of its subsidiaries, including short-terminvestments in cash surpluses and loans to meet projected cash requirements. The Company's policy is toregularly monitor short and long-term liquidity requirements and compliance with borrowing agreements toensure adequate cash reserves and readily available securities.
As of December 31, 2022, the maturity of the Company's financial liabilities is as follows:
Amount: in RMB10,000
Item | December 31, 2022 | |||
Less than 1 year | Within 1-3 years | Over 3 years | Total | |
Short-term loans | 131,823.85 | 131,823.85 | ||
Derivative | 29.34 | 29.34 |
financial liabilities | ||||
Notes payable | 73,489.02 | 73,489.02 | ||
Account payable | 168,254.83 | 3,119.05 | 429.76 | 171,803.64 |
Employees' wage payable | 6,715.09 | - | - | 6,715.09 |
Other payables | 7,228.45 | 1,099.12 | 3,014.97 | 11,342.54 |
Non-current liabilities due in 1 year | 8,377.86 | 8,377.86 | ||
Other current liabilities | 4,813.32 | 4,813.32 | ||
Long-term loans | 63,146.28 | 63,203.72 | 126,350.00 | |
Lease liabilities | 681.92 | 8.83 | 690.75 | |
Long-term payable | 19,764.02 | 19,764.02 | ||
Total liabilities | 400,731.76 | 87,810.39 | 66,657.28 | 555,199.43 |
(Continued)
Item | December 31, 2021 | |||
Less than 1 year | Within 1-3 years | Over 3 years | Total | |
Short-term loans | 128,747.44 | 128,747.44 | ||
Derivative financial liabilities | 1.19 | 1.19 | ||
Notes payable | 84,944.53 | 84,944.53 | ||
Account payable | 132,966.88 | 870.87 | 474.60 | 134,312.35 |
Employees' wage payable | 6,907.10 | 6,907.10 | ||
Other payables | 6,998.63 | 1,707.20 | 3,984.48 | 12,690.31 |
Non-current liabilities due in 1 year | 7,841.86 | 7,841.86 | ||
Other current liabilities | 4,809.84 | 4,809.84 | ||
Long-term loans | 24,650.00 | 108,700.00 | 133,350.00 | |
Lease liabilities | 1,886.82 | 28.39 | 1,915.21 | |
Long-term | 18,364.02 | 18,364.02 |
payable | ||||
Total liabilities | 373,217.47 | 29,114.89 | 131,551.49 | 533,883.85 |
3. Market risk
(1) Credit risks
The exchange rate risk of the Company mainly comes from the assets and liabilities of the Company andits subsidiaries in foreign currency not denominated in its functional currency. Except for the use of Hong Kongdollars, United States dollars, Australian dollars, Vietnamese dong, euro, Indian rupees or Singapore currenciesby its subsidiaries established in and outside the Hong Kong Special Administrative Region, other majorbusinesses of the Company shall be denominated in Renminbi.As of December 31, 2022, the Company's foreign currency financial assets and liabilities at the end of theperiod are listed in Chapter X, VII, item note 70 of consolidated financial statements and description of foreigncurrency monetary items.
The Company pays close attention to the impact of exchange rate changes on the Company's exchangerate risk. The Company continuously monitors the scale of foreign currency transactions and foreign currencyassets and liabilities to minimize foreign exchange risks. To this end, the Company may avoid foreign exchangerisks by signing forward foreign exchange contracts or currency swap contracts.
(2) Exchange rate risk
The Group's interest rate risk mainly arises from long-term interest-bearing debts such as long-term bankloans. Financial liabilities with floating interest rate cause cash flow interest rate risk for the Group. Financialliabilities with fixed interest rate cause fair value interest rate risk for the Group. The Group decides theproportion between fixed interest rate and floating interest rate according to the market environment andregularly reviews and monitors the combination of fixed and floating interest rate instruments.
The Group Finance Department of the Company continuously monitors the Group interest rate level. Therising interest rate will increase the cost of the new interest-bearing debt and the interest expenditure on interest-bearing debt which has not yet been paid by the Company at the floating rate, and will have a significant
adverse effect on the Company's financial performance. Management will make adjustments in time accordingto the latest market conditions.As of December 31, 2022, when other risk variables remain unchanged, if the borrowing interest ratecalculated by floating interest rate increases or decreases by 50 basis points, the net profit of the company inthat year will decrease or increase by RMB6,125,600 (December 31, 2021: RMB6,829,400).XI. Fair Value
1. Closing fair value of assets and liabilities measured at fair value
In RMB
Item | Closing fair value | |||
First level fair value | Second level fair value | Third level fair value | Total | |
1. Continuous fair value measurement | -- | -- | -- | -- |
(I) Transactional financial assets | 789,205.34 | 789,205.34 | ||
1. Financial assets measured at fair value with variations accounted into current income account | 789,205.34 | 789,205.34 | ||
(1) Derivative financial assets | 789,205.34 | 789,205.34 | ||
(2) Receivable financing | 1,338,202.01 | 1,338,202.01 | ||
(3) Investment in other equity tools | 11,968,973.86 | 11,968,973.86 | ||
(4) Investment real estate | 5,750,831,172.12 | 5,750,831,172.12 | ||
1. Leased building | 5,750,831,172.12 | 5,750,831,172.12 | ||
(5) Other non-current financial assets | 7,507,434.68 | 7,507,434.68 | ||
Total assets measured at fair value continuously | 789,205.34 | 5,750,831,172.12 | 20,814,610.55 | 5,772,434,988.01 |
(6) Transactional financial liabilities | 293,400.00 | 293,400.00 | ||
1. Derivative financial liabilities | 293,400.00 | 293,400.00 | ||
Total assets measured at fair value continuously | 293,400.00 | 293,400.00 | ||
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 anactive market;
3. Valuation technique and qualitative and quantitative information for key parameters of continuousand discontinuous second level fair value itemsFor investment real estate, the Company adopts valuation technology to determine its fair value. The valuationtechniques adopted are mainly the market comparison method and the income method, and the rent and resalemodel. The input value of valuation technology mainly includes comparable market unit price, market rent,vacancy rate, growth rate, rate of return, etc.
4. Valuation technique and qualitative and quantitative information for key parameters of continuousand discontinuous third level fair value itemsIf there is no active market, the Company uses evaluation techniques to determine the fair value. The valuationmodels are mainly cash flow discount model and market comparable company model. The input value ofvaluation technology mainly includes risk-free interest rate, benchmark interest rate, exchange rate, credit pointdifference, liquidity premium, lack of liquidity discount, etc.
5. Switch between different levels, switch reason and switching time policy
The Company takes the occurrence date of the events leading to the transition between levels as the time pointto confirm the transition between levels. In the period, there is no switch in the financial assets measured at fairvalue between the first and second level or transfer in or out of the third level.
6. Fair value of financial assets and liabilities not measured at fair value
Financial assets and liabilities measured at amortized cost include: monetary capital, bills receivable, accountsreceivable, other receivables, short-term borrowings, notes payable, accounts payables, other payables, andlong-term payables.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 | RMB30 million | 11.11% | 11.11% |
Shengjiu Investment Ltd. | Hong Kong | Industrial investment | HKD10,000 | 10.11% | 10.11% |
Particulars about the parent of the Company
① All of the investors of Shenzhen Banglin Technology Development Co., Ltd., the holding shareholder of the Company, arenatural persons. Among them, Chairman Xiong Jianming is holding 85% of the shares, and Mr. Xiong Xi – son of Mr. XiongJianming, is holding 15% of the shares.
② Among the top 10 shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu Investment Co., Ltd. areacting in concert.The final controller of the Company is Xiong Jianming.
2. Subsidiaries of the Company
For details of subsidiaries of the enterprise, please refer to Note IX, rights and interests in other entities.
3. Joint ventures and associates
Information about other joint ventures or associates with related transactions in this period or with balance generated by relatedtransactions in previous period:
Joint venture or associate | Relationship with the Company |
Ganshang Joint Investment | Affiliates of the Company |
4. Other associates
Other related parties | Relationship with the Company |
Jiangxi Business Innovative Property Joint Stock Co., Ltd. | Affiliates of the Company |
Gong Qing Cheng Shi Li He Investment Management Partnership Enterprise (limited partner) | Affiliated relationship with Shenzhen Banglin Technology Development Co., Ltd. |
Shenyang Fangda | Subsidiary in liquidation |
Shenzhen Yikang Real Estate Co. Ltd. | Controlled subsidiaries |
Shenzhen Qijian Technology Co., Ltd. (Qijian Technology) | Common actual controller |
Director, manager and secretary of the Board | Key management |
5. Related transactions
(1) Related transactions for purchase and sale of goods, provision and acceptance of servicesSales of goods and services
In RMB
Affiliated party | Related transaction | Amount occurred in the current period | Occurred in previous period |
Qijian Technology | Property service and sales of goods | 244,632.39 | 119,618.74 |
(2) Related leasing
The Company is the leasor:
In RMB
Name of the leasee | Category of asset for lease | Rental recognized in the period | Rental recognized in the period |
Qijian Technology | Houses & buildings | 868,571.40 | 962,580.65 |
(3) Related guarantees
The Company is the guarantor:
In RMB10,000
Beneficiary party | Amount guaranteed | Start date | Due date | Completed or not |
Fangda Jianke | 15,000.00 | April 10, 2020 | Two years after the expiration date of debt performance | Yes |
Fangda Zhiyuan Technology | 10,000.00 | April 10, 2020 | Three years after the expiration date of debt performance | Yes |
Fangda Jianke | 30,000.00 | January 29, 2021 | Three years after the expiration date of debt performance | Yes |
Fangda Zhiyuan Technology | 20,000.00 | January 29, 2021 | Three years after the expiration date of debt performance | Yes |
Fangda Jianke | 30,000.00 | March 17, 2021 | Three years after the expiration date of debt performance | Yes |
Fangda Zhiyuan Technology | 15,000.00 | March 31, 2021 | Three years after the expiration date of debt performance | Yes |
Fangda Jiangxi New Material | 10,000.00 | May 26, 2021 | Two years after the expiration date of debt performance | Yes |
Fangda Shanghai Zhijian | 3,500.00 | June 3, 2021 | Three years after the expiration date of debt performance | Yes |
Fangda Zhiyuan Technology | 40,000.00 | July 7, 2021 | Three years after the expiration date of debt performance | Yes |
Fangda Jianke | 50,000.00 | July 27, 2021 | Three years after the expiration date of debt performance | Yes |
Fangda Jiangxi New Material | 6,500.00 | July 30, 2021 | Three years after the expiration date of debt performance | Yes |
Fangda Zhiyuan Technology | 5,000.00 | August 12, 2021 | Three years after the expiration date of debt performance | Yes |
Fangda Jianke | 30,000.00 | August 18, 2021 | Three years after the expiration date of debt performance | Yes |
Fangda Jianke | 40,000.00 | September 18, 2021 | Three years after the expiration date of debt performance | Yes |
Fangda Zhiyuan Technology | 15,000.00 | September 28, 2021 | Three years after the expiration date of debt performance | Yes |
Kechuangyuan Software | 1,000.00 | September 30, 2021 | Three years after the expiration date of debt performance | Yes |
Fangda Jianke | 25,000.00 | November 17, 2021 | Three years after the expiration date of debt performance | Yes |
Fangda Jianke | 48,000.00 | December 17, 2021 | Three years after the expiration date of debt performance | Yes |
Total amount of guarantee fulfilled | 394,000.00 | |||
Fangda Jianke and Fangda Zhiyuan Technology | 15,400.00 | December 18, 2019 | Two years after the expiration date of debt performance | No |
Fangda Property | 135,000.00 | February 25, 2020 | Two years after the expiration date of debt performance | No |
Fangda Property | 47,000.00 | December 16, 2020 | Three years after the expiration date of debt performance | No |
Fangda Jianke | 60,000.00 | December 21, 2021 | Three years after the expiration date of debt performance | No |
Fangda Jianke | 24,000.00 | March 9, 2022 | Three years after the expiration date of debt performance | No |
Fangda Zhiyuan Technology | 15,000.00 | March 9, 2022 | Three years after the expiration date of debt performance | No |
Fangda Jiangxi New Material | 10,000.00 | April 20, 2022 | Three years after the expiration date of debt performance | No |
Fangda Yunzhu | 600.00 | May 10, 2022 | Three years after the expiration date of debt performance | No |
Fangda Jianke | 15,000.00 | May 23, 2022 | Three years after the expiration date of debt performance | No |
Fangda Zhiyuan Technology | 10,000.00 | May 23, 2022 | Three years after the expiration date of debt performance | No |
Fangda Zhijian | 7,000.00 | June 1, 2022 | Three years after the expiration date of debt performance | No |
Fangda Zhiyuan Technology | 40,000.00 | July 4, 2022 | Three years after the expiration date of debt performance | No |
Fangda Jianke | 20,000.00 | August 10, 2022 | Three years after the expiration date of debt performance | No |
Fangda Yunzhu | 800.00 | August 19, 2022 | Three years after the expiration date of debt performance | No |
Fangda Jiangxi New Material | 8,500.00 | September 6, 2022 | Three years after the expiration date of debt performance | No |
Fangda Jianke | 4,000.00 | September 8, 2022 | Three years after the expiration date of debt performance | No |
Fangda Jianke | 50,000.00 | September 20, 2022 | Three years after the expiration date of debt performance | No |
Fangda Jianke | 30,000.00 | September 20, 2022 | Three years after the expiration date of debt performance | No |
Fangda Jianke | 30,000.00 | October 19, 2022 | Three years after the expiration date of debt performance | No |
Fangda Zhiyuan | 20,000.00 | October 19, 2022 | Three years after the expiration date of debt performance | No |
Fangda Zhiyuan | 15,000.00 | November 1, 2022 | Three years after the expiration date of debt performance | No |
Fangda Jianke | 86,000.00 | November 24, 2022 | Three years after the expiration date of debt performance | No |
Fangda Jianke | 39,000.00 | December 9, 2022 | Three years after the expiration date of debt performance | No |
Fangda Jianke | 48,000.00 | December 15, 2022 | Three years after the expiration date of debt performance | No |
Total amount of guarantee being performed | 730,300.00 |
Description of related party guarantee: The above-mentioned guarantees are all associated guarantees within interested entities ofthe Company.
(4) Remuneration of key management
In RMB
Item | Amount occurred in the current period | Occurred in previous period |
Directors, supervisors and senior management | 9,495,306.69 | 9,463,963.93 |
6. Receivable and payables due with related parties
(1) Receivable interest
In RMB
Project name | Affiliated party | Closing balance | Opening balance | ||
Remaining book value | Bad debt provision | Remaining book value | Bad debt provision | ||
Account receivable | Qijian Technology | 4,708.76 | 47.09 | 4,194.54 | 41.95 |
Other receivables | Shenyang Fangda | 42,877.00 | 42,877.00 | 42,877.00 | 42,877.00 |
Other receivables | Ganshang Joint Investment | 3,791,089.25 | 56,487.23 | 3,791,089.25 | 56,487.23 |
Other receivables | Shenzhen Yikang Real Estate Co. Ltd. | 70,062,675.83 | 1,043,933.87 | 70,062,675.83 | 1,043,933.87 |
(2) Receivable interest
In RMB
Project name | Affiliated party | Closing balance of book value | Opening balance of book value |
Other payables | Shenzhen Yikang Real Estate Co. Ltd. | 25,305,047.71 | 25,116,052.92 |
Other payables | Qijian Technology | 400.00 | 400.00 |
Other payables | Ganshang Joint Investment | 3,355.36 | 3,355.36 |
XIII. Contingent events
1. Major commitments
Major commitments that exist on the balance sheet 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 the two parties agreed to develop cooperatively. In order to develop urban renewing projects such as a "renovation project",Fangda Real Estate provided Party A with property compensation through renovating and renovating the property allocation termsagreed upon by both parties, and obtained independent development rights of the project. As of December 31, 2022, Fangda RealEstate has paid a deposit of RMB 20,000,000.
(2) In July 2018 ,the Company's subsidiary Fangda Real Estate Co. Ltd. (Party A) signed a contract with Shenzhen YikangReal Estate Co. Ltd. (Party B1) and Shenzhen Qianhai Zhongzheng Dingfeng No. 6 Investment Enterprise (Limited Partnership)(Party B2), "Shenzhen Henggang Dakang Village Project Cooperation Agreement". Party B agrees to transfer the entire equity ofthe project company it holds and the entire development interest of the project to Party A. Party A shall pay Party B a total ofRMB600 million for the cooperation price. As of December 31, 2022, Fangda Property has paid Party B and the project companyRMB50 million of security deposit, RMB20 million of service fee, RMB61,937,200 of equity transfer and RMB73,062,800 ofother related payments.In May 2021, the subsidiaries Fangda Jianke, Fangda Jiangxi New Material and CITIC Securities Investment Co., Ltd.,Shenzhen Hi Tech Investment Venture Capital Co., Ltd., Shenzhen Qianhai Pengchen Investment Partnership (limited partnership),Gongqingcheng Longrun Spring Investment Partnership (limited partnership), Shenzhen Jiayuan Capital Management Co., Ltdand Gongqingcheng Huasheng Botai Investment Partnership (limited partnership) (hereinafter referred to as the "Transferee")signed equity transfer agreements to transfer 10.9375% of the total equity of Fangda Zhiyuan Technology, with the transfer amountof RMB 175 million. The agreement also stipulates that if Fangda Zhiyuan Technology fails to start and complete the qualifiedlisting before May 31, 2025, the transferee has the right to require Fangda Jianke and Fangda Jiangxi New Material to repurchaseor transfer all or part of the equity of Fangda Zhiyuan Technology held by the transferee.
The Company has no other commitments that should be disclosed by December 31, 2022.
2. Contingencies
Significant contingencies on the balance sheet date:
(1) Contingent liabilities formed by material lawsuit or arbitration, and their influences on the financial position
① On June 19, 2019, Langfang Aomei Jiye Real Estate Development Co., Ltd. filed a lawsuit against Fangda Jianke in thePeople's Court of Langfang Development Zone, demanding compensation of RMB19,721,315.00, and filed an application forappraisal of quality, repair cost and uncompleted project cost on December 26, 2019; Fangda Jianke filed a counterclaim onSeptember 11, 2019, demanding payment of RMB13,939,863.27, and put forward the application for completed project costappraisal on November 22, 2019. As of the date of this report, the case is still in the identification process.
② In March 2022, Xiangheng Real Estate (Jinan) Co., Ltd. filed an arbitration with the Jinan Arbitration Commission,requesting Fangda Jianke to bear the deduction, maintenance, rectification and rework costs of RMB8,956,563.81 and lawyer'sfees of RMB350,000.00 caused by the quality problems of the supply and installation of aluminum alloy doors and windows,louvers and curtain walls of Jinan Kerry comprehensive development project (phase I and II); In April 2022, Fangda ConstructionTechnology Co., Ltd. filed an anti arbitration application, requiring Xiangheng Real Estate (Jinan) Co., Ltd. to pay a total ofRMB18,062,462.28 for the project funds and project expenses. As of the date of this report, the two cases are under joint trial.
③In September 2022, Fangda Jianke Co., Ltd. filed a lawsuit to the People's Court of Longhua District, requiring LongguangEngineering Construction Co., Ltd. to pay the total principal and interest of the project funds of Longguang Jiuzuan Project Plot 05and Plot 09 to Fangda Construction Technology Co., Ltd., totaling RMB33,197,543.00. As of the date of this report, the court hasfiled a case and has not yet held a hearing.
④In October 2022, Fangda Jianke Co., Ltd. filed a lawsuit to the People's Court of Danzhou City, Hainan Province,requesting Danzhou Dongtuo Tourism Development Co., Ltd. to pay to Fangda Jianke Co., Ltd. a total of RMB27,863,564.06 ofthe principal and interest of the project payment for the Hengda Huadao Project. As of the date of this report, the court hasreceived the filing materials and has not yet filed the case.
⑤In October 2022, Fangda Jianke Co., Ltd. filed an application for arbitration with the Guiyang Arbitration Commission,requiring Zhongtian Urban Investment Group Guiyang International Financial Center Co., Ltd. to pay Fangda Jianke Co., Ltd. atotal of RMB10,818,847.31 of the principal and interest of the curtain wall project of Building 7 and Building 9 in the first phaseof Guiyang International Financial Center Business District. As of the date of this report, the arbitration tribunal has filed a caseand held a hearing, waiting for an award.
⑥In September 2022, Fangda Real Estate Co., Ltd. filed a lawsuit to the People's Court of Nanshan District, Shenzhen,requiring Shenzhen Hongtao Group Co., Ltd. to pay the total principal and interest of Fangda Real Estate Co., Ltd. to Fangda RealEstate Co., Ltd. for the purchase of building 3 # in Fangda City, amounting to RMB56,527,427.01, and Hongtao Company'scounterclaim party, Dada Real Estate Co., Ltd., requested to cancel the signed Supplementary Agreement on Real Estate Sales andpay the liquidated damages of RMB44,046,859.04 for overdue certificate processing. As of the date of this report, the court hasheld a trial and has not yet concluded the trial.
⑦In September 2022, Fangda Real Estate filed a lawsuit with the People's Court of Nanshan District, Shenzhen City,requesting the court to order the cancellation of the Shenzhen Real Estate Sales Contract (Cash Sale) signed by Fangda Real Estateand Shenzhen Rijiasheng Trading Co., Ltd., and order Rijiasheng to pay the bank mortgage loan compensation ofRMB18,796,489.12 and interest of RMB3,800,495.61 to Fangda Real Estate, and the liquidated damages for contract cancellationof RMB3,428,313.1, occupation fee Please refund the overdue fee. In September 2022, Shenzhen Rijiasheng Trading Co., Ltd.filed a lawsuit to the People's Court of Nanshan District, Shenzhen, requesting Fangda Real Estate to perform the obligation ofhandling the certificate and bear the liquidated damages for overdue handling of the certificate. The provisional amount ofRMB3,669,046.43 is actually calculated until the certificate is completed. As of the date of this report, the two cases have not yetbeen heard.
⑧In July 2022, Wang Weihong filed a lawsuit on the ground that Fang Dajianke Company constituted a preservation error inthe (2015) YYYZFMCZ No. 01205 case, claiming that Fang Dajianke Company compensated for the loss of RMB2,325,779.17,and another lawsuit claimed that Fang Dajianke Company owed its project payment principal of RMB4.78 million and interest.The court of first instance in both cases has ruled against all of Wang Weihong's claims. As of the date of this report, WangWeihong has filed an appeal and is in the process of second instance.
⑨Fangda Zhiyuan Technology Co., Ltd. and Shenzhen BYD Supply Chain Management Co., Ltd. (hereinafter referred to as"BYD") have a purchase and sales contract dispute, and BYD has defaulted on payment for goods. Fangda Zhiyuan TechnologyCo., Ltd. filed a lawsuit to the People's Court of Pingshan District on October 20, 2022, demanding payment of RMB5.4532million for raw materials and storage and management fees. As of the issuance date of this report, the court has accepted the caseon February 13, 2023, waiting for the first trial.
(2) Pending major lawsuits
①On September 6, 2017, Chenghua District People's Court of Chengdu Municipality sentenced Sichuan Chuta HengyuanIndustrial Co., Ltd. to pay construction payment of RMB10,242,182.99 to Fangda Jianke within 10 days from the date of the
verdict 川0108民初1828号. As of the date of this report, Fangda Jianke has applied for execution and has not received therelevant payment.
②On November 15, 2019, the Chengdu Chenghua District People's Court ruled that Sichuan Chuanta Hengyuan IndustrialCo., Ltd. shall pay interest to the company (at 841.23 yuan) within 10 days from the effective date of the judgment with (2019)Chuan 0108 Min Chu No. 428 As the base number, from May 29, 2015 to the day when the payment is paid; using 841,876. 32yuan as the base number, from May 28, 2015 to the day when the payment is paid. Based on $841, 876.32, from 28 May 2016 tothe date of payment). The company has priority right to be paid for the discounted or auctioned price of project C of SichuanTower Project (Television Culture Plaza) within the scope of 7,697,4#*@$ Yuan. As of the date of this report, Fangda Jianke hasnot received relevant funds.
③In November 2018, the Company's subsidiary, Fangda Jianke, sued Fujian Huapu Real Estate Development Co., Ltd.(hereinafter referred to as Huapu company) to the People's Court of Taijiang District, Fuzhou City for paying RMB13,810,243.67of project payment and RMB373,380.16 of overdue interest, totaling RMB14,183,623.83. Case No.: (2019) Min 0103 Min ChuNo. 4282. In April 2020, Huapu Company filed a counterclaim application to the court, requesting Fangda Jianke Company to paya total of 12,746,000.00 yuan for the construction period and quality. In October 2021, the court ruled that Huapu should pay theproject payment of RMB10,683,952.00 and overdue payment interest to Fangda Jianke, of which the project payment ofRMB10,683,952.00 has the priority to be paid, and the judgment has come into force. As of the date of this report, Huapu has beenapplied for bankruptcy liquidation, and Fangda Jianke has declared priority creditor's rights.
④In January 2022, Fangda Jianke filed a lawsuit against Chongqing Yongde Real Estate Co., Ltd. to the People's Court ofJiangbei District, Chongqing to pay RMB28,760,911.55 for the project and the interest on overdue payment, and claimed to enjoythe priority of the project payment. The case number is (2022)渝0105民初227号. In May 2022, the court ruled that ChongqingYongde Real Estate Co., Ltd. should pay RMB28,760,911.55 of project funds and overdue payment interest to Fangda Jianke, andsupported the priority right of compensation of project funds. The judgment has taken effect. As of the date of this report,Chongqing Yongde Real Estate Co., Ltd. has been ruled by the court to pre-reorganize, and Fangda Construction Technology Co.,Ltd. has declared its creditor's rights according to the notice of the administrator.
⑤In September 2021, Fangda Jianke sued Qianhai Junlin Industrial Development (Shenzhen) Co., Ltd. and Evergrande RealEstate Group (Shenzhen) Co., Ltd. for paying RMB7096421.00 yuan of project payment and overdue interest, and claimed thepriority of project payment. In August 2022, the court ruled that Qianhai Junlin Industrial Development (Shenzhen) Co., Ltd.should pay the project payment of RMB7,096,421.00 and the interest on overdue payment to Fangda Construction Technology Co.,Ltd., and supported the priority of the project payment, but did not support the shareholder Evergrande Real Estate Group(Shenzhen) Co., Ltd. to bear the joint and several liabilities. As of the disclosure date of this report, the judgment has come intoeffect and has not yet been collected.
⑥In October 2021, Fangda Jianke filed an arbitration with the arbitration court, requiring Zhuhai R&F Real Estate Co., Ltd.to pay RMB11,806,353.97 of the project funds and overdue interest, and claimed to enjoy the priority of the project funds. Thecase was accepted by the Zhuhai International Arbitration Court on October 26, 2021, with the case number of ZAAZ (2021) No.
698. In January 2022, Fangda Jianke Co., Ltd. reached a settlement with Zhuhai Fuli Real Estate Co., Ltd., signed a settlementagreement, and signed a house payment agreement with the third party Hengxin International Optical Industry Co., Ltd. After thesettlement, Fuli paid 652248.97 yuan for the project; In May 2022, due to the failure of Fuli Company and Hengxin InternationalOptical Industry Co., Ltd. to perform the house arrival agreement, Fangda Construction Technology Co., Ltd. again filed forarbitration, demanding the payment of the remaining project funds and interests totaling 11633903.96 yuan. The ZhuhaiInternational Arbitration Court accepted the case in May 2022, with the case number of ZCZZ (2022) No. 283, and completed thehearing on July 25, 2022. As of the disclosure date of this report, both parties have reached an agreement to offset the paymentwith the house through mediation of the arbitration commission, which has not yet been fulfilled.
(3) Contingent liabilities formed by providing of guarantee to other companies' debts and their influences on financialsituation
By December 31, 2022, the Company has provided loan guarantees for the following entities:
In RMB10,000
Name of guaranteed | Guarantee | Amount | Term | Remarks |
entity | ||||
Fangda Property | Guarantee and mortgage guarantee | 89,000.00 | 2020.2.25-2030.02.24 | |
Fangda Property | Guarantee | 44,350.00 | 2021.03.18-2031.03.18 | |
Fangda Jianke | Guarantee | 4,000.00 | 2022.09.08-2023.09.03 | |
Fangda Jianke | Guarantee | 5,000.00 | 2022.03.27-2023.03.26 | |
Fangda Jianke | Guarantee | 3,000.00 | 2022.06.01-2023.06.01 | |
Fangda Zhiyuan Technology | Guarantee | 3,000.00 | 2022.07.25-2023.07.25 | |
Total | 148,350.00 |
Notes: ① Contingent liabilities caused by guarantees provided for other entities are all related guarantees betweeninterested entities in the Company.
② The Company's property business provides periodic mortgage guarantee for property purchasers. The term of the periodicguarantee lasts from the effectiveness of guarantee contracts to the completion of mortgage registration and transfer of housingownership certificates to banks. As of December 31, 2022, the Company assumed the above-mentioned phased guarantee amountof RMB20,114,100.
(4) Other contingent liabilities and their influences
The Company has no other contingent events that should be disclosed by December 31, 2022.
3. Others
As of December 31, 2022, the Company has not revoked the letter of guarantee:
Currency | Guarantee balance (original currency) | Deposit (RMB) | Credit line used (RMB) |
CNY | 712,044,534.59 | 712,044,534.59 | |
INR | 78,691,782.78 | 46,099.32 | 6,574,004.29 |
HKD | 15,349,982.00 | 15,000,000.00 | |
USD | 2,507,136.33 | 1,432,146.95 | 16,029,054.73 |
SGD | 2,700,000.00 | 13,994,370.00 | |
AUD | 1,580,000.00 | 7,447,804.00 | |
EUR | 3,771,764.01 | 27,997,427.07 |
Total | 16,478,246.27 | 784,087,194.68 |
XIV. Post-balance-sheet events
1. Profit distribution
In RMB
Profit or dividend to be distributed | 53,693,711.35 |
Profit or dividend approved to be distributed | 53,693,711.35 |
Profit distribution plan | The Company held the 18th meeting of the 9th term of Board on Friday, February 24, 2023 to vote for the proposal of dividend distribution for year 2022. According to the resolution of the 18th meeting of the 9th Board of Directors, the Company plans to distribute cash dividends of RMB0.50 (including tax) per 10 shares to all shareholders based on the total capital stock of 1,073,874,227 shares on December 31, 2022, totaling RMB53,693,711.35. No dividend share or capitalization share was issued in the year. |
2. Notes to other issues in post balance sheet period
The Company has no other issues in post balance sheet period that need to be disclosed on February 24,2023 (report date approved by the Board of Directors).
XV. Other material events
1. Segment information
(1) Recognition basis and accounting policy for segment report
The Group divides its businesses into five reporting segments. The reporting segments are determinedbased on financial information required by routine internal management. The Group's management regularlyreview the operating results of the reporting segments to determine resource distribution and evaluate theirperformance.
The reporting segments are:
① Curtain wall division: production and sales of curtain wall materials, design, production andinstallation of building curtain walls, curtain wall testing and maintenance services;
② Rail transit branch: assembly and processing of subway screen doors, screen door detection andmaintenance services;
(3) Real estate segment: development and operating of real estate on land of which land use right is legallyobtained by the Company; property management;
(4) New energy segment: photovoltaic power generation, photovoltaic power plant sales, photovoltaicequipment R & D, installation, and sales, and photovoltaic power plant engineering design and installation
(5) Others
The segment report information is disclosed based on the accounting policies and measurement standardsused by the segments when reporting to the management. The policies and standards should be consistent withthose used in preparing the financial statement.
(2) Financial information
In RMB
Item | Curtain wall | Rail transport | Real estate | New energy | Others | Offset between segments | Total |
Turnover | 2,881,797,444.24 | 564,551,749.10 | 377,331,127.79 | 20,518,921.86 | 28,258,406.71 | 25,481,701.26 | 3,846,975,948.44 |
Including: external transaction income | 2,877,126,181.59 | 564,551,749.10 | 369,529,923.55 | 19,707,669.06 | 16,060,425.14 | 3,846,975,948.44 | |
Inter-segment transaction income | 4,671,262.65 | 7,801,204.24 | 811,252.80 | 12,197,981.57 | 25,481,701.26 | ||
Including: major business turnover | 2,841,333,845.45 | 563,230,008.51 | 247,329,856.12 | 20,518,921.86 | 8,243,338.11 | 3,664,169,293.83 | |
Operating cost | 2,368,252,824.82 | 437,859,996.04 | 109,507,083.12 | 8,175,637.03 | 207,701.70 | 6,249,275.19 | 2,917,753,967.52 |
Including: major business cost | 2,338,589,739.95 | 437,859,996.04 | 101,834,575.17 | 8,175,637.03 | 6,249,275.19 | 2,880,210,673.00 | |
Operation cost | 340,009,738.84 | 66,558,936.84 | 149,225,545.16 | -526,090.03 | 28,984,034.42 | -14,975,915.41 | 599,228,080.64 |
Operating profit/(loss) | 173,534,880.58 | 60,132,816.22 | 118,598,499.51 | 12,869,374.86 | -933,329.41 | 34,208,341.48 | 329,993,900.28 |
Total assets | 5,162,017,97 | 906,162,531. | 6,294,144,70 | 132,097,040. | 3,134,371,54 | 2,883,608,51 | 12,745,185,2 |
9.59 | 41 | 6.91 | 22 | 7.97 | 2.08 | 94.02 | |
Total liabilities | 3,161,283,016.76 | 555,967,242.78 | 3,552,387,324.26 | 17,031,343.23 | 783,033,170.18 | 1,144,901,965.44 | 6,924,800,131.77 |
(3) Others
Since more than 90% of the Group's revenue comes from Chinese customer and 90% of the Group's assetsare in China, no detailed regional information is needed.XVII. Notes to Financial Statements of the Parent
1. Account receivable
(1) Account receivable disclosed by categories
In RMB
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 | |||
Including: | ||||||||||
Account receivable for which bad debt provision is made by group | 680,529.54 | 100.00% | 32,584.96 | 4.79% | 647,944.58 | 595,366.68 | 100.00% | 9,430.38 | 1.58% | 585,936.30 |
Including: | ||||||||||
Portfolio 3. Others | 680,529.54 | 100.00% | 32,584.96 | 4.79% | 647,944.58 | 595,366.68 | 100.00% | 9,430.38 | 1.58% | 585,936.30 |
Total | 680,529.54 | 100.00% | 32,584.96 | 4.79% | 647,944.58 | 595,366.68 | 100.00% | 9,430.38 | 1.58% | 585,936.30 |
Provision for bad debts by combination:
In RMB
Name | Closing balance | ||
Remaining book value | Bad debt provision | Provision rate | |
Portfolio 3. Others | 680,529.54 | 32,584.96 | 4.79% |
Group recognition basis:
See 9. Financial Tools in Chapter X, V, Important Accounting Policies and Accounting Estimates for the recognition criteria andinstructions for withdrawing bad debt reserves by portfolioIf 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
Age | Remaining book value |
Within 1 year (inclusive) | 321,399.65 |
2-3 years | 359,129.89 |
Total | 680,529.54 |
(2) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Type | Opening balance | Change in the period | Closing balance | |||
Provision | Written-back or recovered | Canceled | Others | |||
Portfolio 3. Others | 9,430.38 | 23,154.58 | 32,584.96 | |||
Total | 9,430.38 | 23,154.58 | 32,584.96 |
(3) Balance of top 5 accounts receivable at the end of the period
In RMB
Entity | Closing balance of accounts receivable | Percentage (%) | Balance of bad debt provision at the end of the period |
Top five summary | 640,390.23 | 94.10% | 32,291.94 |
Total | 640,390.23 | 94.10% |
2. Other receivables
In RMB
Item | Closing balance | Opening balance |
Other receivables | 1,046,500,428.02 | 1,276,731,665.95 |
Total | 1,046,500,428.02 | 1,276,731,665.95 |
(1) Other receivables
1) Other receivables are disclosed by nature
In RMB
By nature | Closing balance of book value | Opening balance of book value |
Deposit | 150,699.54 | 150,699.54 |
Debt by Luo Huichi | 11,242,291.48 | 12,992,291.48 |
Others | 396,561.98 | 120,143.89 |
Accounts between related parties within the scope of consolidation | 1,046,003,558.83 | 1,276,507,096.22 |
Total | 1,057,793,111.83 | 1,289,770,231.13 |
2) Method of bad debt provision
In 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, 2022 | 3,396.70 | 13,035,168.48 | 13,038,565.18 | |
Balance on January 1, 2022 in the current period | ||||
Provision | 4,118.63 | 4,118.63 | ||
Transferred back in the current period | 1,750,000.00 | 1,750,000.00 | ||
Balance on December 31, 2022 | 7,515.33 | 11,285,168.48 | 11,292,683.81 |
Changes in book balances with significant changes in the current period
□ Applicable ? Inapplicable
Account age
In RMB
Age | Remaining book value |
Within 1 year (inclusive) | 97,579,475.19 |
1-2 years | 697,897,404.79 |
2-3 years | 250,960,363.83 |
Over 3 years | 11,355,868.02 |
Including: more than 5 years | 11,355,868.02 |
Total | 1,057,793,111.83 |
3) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Type | Opening balance | Change in the period | Closing balance | |||
Provision | Written-back or recovered | Canceled | Others | |||
Other receivables and bad debt provision | 13,038,565.18 | 4,118.63 | 1,750,000.00 | 11,292,683.81 | ||
Total | 13,038,565.18 | 4,118.63 | 1,750,000.00 | 11,292,683.81 |
Including significant recovery or reversal:
In RMB
Entity | Written-back or recovered amount | Method |
Luo Huichi | 1,750,000.00 | Bank transfer recovery |
Total | 1,750,000.00 |
4) Balance of top 5 other receivables at the end of the period
In RMB
Entity | By nature | Closing balance | Age | Percentage (%) | Balance of bad debt provision at the end of the period |
Fangda Property | Affiliated party payment | 66,135,688.46 | Less than 1 year | 77.93% | |
538,000,000.00 | 1-2 years | ||||
220,178,936.99 | 2-3 years | ||||
Fangda Jiangxi Property Development | Affiliated party payment | 20,000,000.00 | Less than 1 year | 17.03% | |
159,897,404.79 | 1-2 years | ||||
241,633.75 | 2-3 years | ||||
Shihui International | Affiliated party payment | 30,459,793.09 | 1-2 years | 2.88% | |
Luo Huichi | Debt by Luo Huichi | 11,242,291.48 | Over 5 years | 1.06% | 11,242,291.48 |
Fangda New Energy | Affiliated party payment | 10,851,784.69 | Less than 1 year | 1.03% | |
Total | 1,057,007,533.25 | 99.93% | 11,242,291.48 |
3. Long-term share equity investment
In RMB
Item | Closing balance | Opening balance | ||||
Remaining book value | Impairment provision | Book value | Remaining book val |