China Fangda Group Co., Ltd.
2022 Interim Report
August 2022
Chapter 1 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 whichthis report was examined.Forward-looking statements involved in this report including future plansdo not make any material promise to investors. Investors should pay attentionto investment risks.The Company has specified market, management and production andoperation risks in this report. Please review the 10. Risks Facing the Companyand Measures in Chapter 3 Management Discussion and Analysis.
The Company will distribute no cash dividends or bonus shares and hasno reserve capitalization plan.
Table of Contents
Chapter 1 Important Statement, Table of Contents and Definitions ...... 2
Chapter 2 About the Company and Financial Highlights ...... 7
1. Company Profile .......................................................................................................................................... 7
2. Contacts and liaisons ................................................................................................................................... 7
3. Other Information ....................................................................................................................................... 7
4. Financial Highlight ...................................................................................................................................... 8
5. Differences in accounting data under domestic and foreign accounting standards ............................... 8
6. Accidental gain/loss item and amount ........................................................................................................ 9
Chapter 3 Management Discussion and Analysis ...... 10
1. Major businesses of the Company during the report period ................................................................. 10
II. Core Competitiveness Analysis ................................................................................................................ 18
III. Core business analysis............................................................................................................................. 21
IV. Non-core business analysis ...................................................................................................................... 23
V. Assets and Liabilities ................................................................................................................................. 23
VI. Investment ................................................................................................................................................ 25
VII. Major assets and equity sales ................................................................................................................ 27
VIII. Analysis of major joint stock companies ............................................................................................ 27
IX. Structural entities controlled by the Company ..................................................................................... 27
X. Risks facing the Company and measures ............................................................................................... 28
Chapter IV Corporation Governance ...... 30
I. Annual and extraordinary shareholder meetings held during the report period ................................. 30
II. Changes in the Directors, Supervisors and Senior Executives ............................................................. 30
III. Profit Distribution and Reserve Capitalization in the Report Period ................................................ 30
IV. Share incentive schemes, staff shareholding program or other incentive plans ................................. 30
V. Environmental and social responsibility ......................................................................................................... 31
1. Environmental protection ......................................................................................................................... 31
2. Social responsibilities ................................................................................................................................. 32
Chapter VI Significant Events ...... 33
I. Commitments that have been fulfilled and not fulfilled by actual controller, shareholders, relatedparties, acquirers of the Company ...... 33
II. Non-operating capital use by the controlling shareholder or related parties in the reporting term . 33III. Incompliant external guarantee ............................................................................................................. 33
IV. Engaging and dismissing of CPA ............................................................................................................ 33V. Statement of the Board on the “non-standard auditors' report” issued by the CPA on the currentreport period ...... 33
VI. Statement of the Board of Directors on the Non-standard Auditor's Report for H1 2014 ............... 33
VII. Bankruptcy and capital reorganizing .................................................................................................. 33
VIII. Lawsuit .................................................................................................................................................. 33
IX. Punishment and rectification.................................................................................................................. 34
X. Credibility of the Company, controlling shareholder and actual controller ........................................ 34
XI. Material related transactions ................................................................................................................. 34
XII. Significant contracts and performance ................................................................................................ 35
13. Other material events .............................................................................................................................. 41
XIV. Material events of subsidiaries............................................................................................................. 41
Chapter VII Changes in Share Capital and Shareholders ...... 42
I. Changes in shares ....................................................................................................................................... 42
II. Share placing and listing .......................................................................................................................... 44
III. Shareholders and shareholding .............................................................................................................. 44
IV. Changes in shareholding of Directors, Supervisors and Senior Management ................................... 47
V. Changes in controlling shareholder or actual controller ....................................................................... 47
Chapter VIII Preferred Shares ...... 48
Chapter IX Information about the Company's Securities ...... 49
Chapter X Financial Statements ...... 50
I. Auditor's report .......................................................................................................................................... 50
II. Financial statements ................................................................................................................................. 50
III. General Information ............................................................................................................................... 70
IV. Basis for the preparation of financial statements .................................................................................. 71
V. Significant Account Policies and Estimates ............................................................................................. 71
VI. Taxation .................................................................................................................................................. 110
VII. Notes to the consolidated financial statements .................................................................................. 113
VIII. Change to Consolidation Scope ......................................................................................................... 152
IX. Equity in Other Entities ........................................................................................................................ 152
X. Risks of Financial Tools .......................................................................................................................... 155
XI. Fair Value ............................................................................................................................................... 158
XII. Related Parties and Transactions ....................................................................................................... 160
XIII. Contingent events ............................................................................................................................... 163
XIV. Post-balance-sheet events ................................................................................................................... 166
XV. Other material events ........................................................................................................................... 166
XVI. Notes to Financial Statements of the Parent .................................................................................... 167
XVII. Supplementary Materials ................................................................................................................. 172
Reference
1. Financial statements stamped and signed by the legal representative, CFO and accounting manager;
2. 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 Jiangxi Property | Refers to | Fangda (Jiangxi) Property Development Co., Ltd. |
| Fangda Investment | Refers to | Shenzhen Fangda Investment Partnership (Limited Partnership) |
| Yunzhu | Refers to | Shenzhen Fangda Yunzhu Technology Co., Ltd. |
| Fangda Shanghai Technology | Refers to | Shanghai Fangda Zhijian Technology Co., Ltd |
| SZSE | Refers to | Shenzhen Stock Exchange |
Chapter 2 About the Company and Financial Highlights
1. Company Profile
| Stock ID | Fangda Group, Fangda B | Stock code | 000055, 200055 |
| Modified stock ID | None | ||
| Stock Exchange | Shenzhen Stock Exchange | ||
| Chinese name | China Fangda Group Co., Ltd. | ||
| Chinese abbreviation | Fangda Group | ||
| English name of the Company | CHINA FANGDA GROUP CO.,LTD. | ||
| Abbreviation of English name of the Company | CFGC | ||
| Legal representative | Xiong Jianming | ||
2. Contacts and liaisons
| Secretary of the Board | Representative of Stock Affairs | |
| PRINTED 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 |
3. Other Information
1. Liaison
Changes to the Company's registration address, office address, post code, website or email during the report period
□ Applicable ? Inapplicable
Company's registration address, office address, post code, website or email have not changed during the report period. See AnnualReport 2021 for details.
2. Information disclosure and inquiring
Changes to the information disclosure and inquiring place
□ Applicable ? Inapplicable
Please refer to the 2021 annual report for the newspapers and websites where the Company's information is disclosed. The inquiryaddress of the interim report has remained unchanged during the report period.
3. Other information
Whether other relevant information has changed during the reporting period
□ Applicable ? Inapplicable
4. Financial Highlight
Whether the Company needs to make retroactive adjustment or restatement of financial data of previous years
□ Yes ? No
| This report period | Same period last year | Year-on-year change (%) | |
| Turnover (yuan) | 1,613,063,315.30 | 1,568,778,834.98 | 2.82% |
| Net profit attributable to shareholders of the listed company (yuan) | 112,685,273.77 | 111,488,701.33 | 1.07% |
| Net profit attributable to the shareholders of the listed company and after deducting of non-recurring gain/loss (yuan) | 105,117,575.02 | 97,095,794.95 | 8.26% |
| Net cash flow generated by business operation (yuan) | -306,580,793.04 | -500,924,545.00 | 38.80% |
| Basic earnings per share (yuan/share) | 0.10 | 0.10 | 0.00% |
| Diluted Earnings per share (yuan/share) | 0.10 | 0.10 | 0.00% |
| Weighted average net income/asset ratio | 2.03% | 2.05% | -0.02% |
| End of the report period | End of last year | Year-on-year change | |
| Total asset (yuan) | 12,411,505,782.40 | 12,261,338,518.66 | 1.22% |
| Net profit attributable to the shareholders of the listed company (RMB) | 5,582,581,119.09 | 5,524,039,886.94 | 1.06% |
5. 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.
6. Accidental gain/loss item and amount
? Applicable □ Inapplicable
In RMB
| Item | Amount | Notes |
| Non-current asset disposal gain/loss (including the write-off part for which assets impairment provision is made) | ||
| Government subsidies accounted into current gain/loss account, other than those closely related to the Company's common business, comply with the national policy and continues to enjoy at certain fixed rate or amount. | 4,734,557.71 | |
| Capital using expense charged to non-financial enterprises and accounted into the current income account | 3,454,345.45 | |
| 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 | 3,145,876.39 | |
| Gain/loss from change of fair value of investment property measured at fair value in follow-up measurement | 1,068,328.60 | |
| Other non-business income and expenditures other than the above | ||
| Less: Influenced amount of income tax | 1,815,756.39 | |
| Influenced amount of minority shareholders' equity (after-tax) | 72,457.02 | |
| Total | 7,567,698.75 |
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 3 Management Discussion and Analysis
1. Major businesses of the Company during the report period
Since its inception, the Company has remained committed to its core business and adhered to its original mission of green,low-carbon and environmental protection, and has successively developed products such as smart curtain walls, solar photovoltaiccurtain walls, PVDF aluminum veneer, and rail transit screen doors. Since its conception, the company has always adhered to thephilosophy "technology-based, innovation-based", and has created Fangda's craftsmanship in pursuit of outstanding quality. Oursmart curtain wall system, PVDF aluminum veneer, rail transit screen door system, and other products have become globalindustry benchmarks. The comprehensive competitiveness of Fangda intelligent curtain wall ranks among the top three in thecurtain wall industry, and the platform screen door system of rail transit is recognized as the "champion product of manufacturingindustry" by the Ministry of Industry and Information Technology. During the reporting period, the subsidiaries Fangda ZhiyuanTechnology and Yunzhu were rated as "specialized, special and innovative" enterprises in Shenzhen, Fangda ShanghaiTechnology was rated as "specialized, special and innovative" enterprise in Shanghai, and the subsidiary Fangda Dongguan NewMaterials was selected as synergy multiplier enterprises; The Industrial Product Standard Platform Screen Doors of Urban RailTransit (CJ/T236-2022), which is mainly revised by the subsidiary Fangda Zhiyuan Technology, was approved and issued by theMinistry of Housing and Urban Rural Development of the People's Republic of China and was implemented from May 1, 2022.The Company has 7 national high-tech enterprises, 1 enterprise product has been recognized as the champion product ofmanufacturing industry by the Ministry of Industry and Information Technology of the People's Republic of China, 3 "specialized,special and innovative" enterprises, 2 provincial-level enterprise technology research centers, and its business covers more than120 countries and regions around the world.In the first half of 2022, the epidemic situation in many places in China was severe and complicated, the economic downwardpressure continued to increase, and the prices of bulk raw materials fluctuated violently, which brought severe challenges to theCompany's production and operation. Through the joint efforts of all employees, the Company has completed its 2022 H1 businessgoals primarily under the leadership of the Board of Directors and management team. During the reporting period, the Companyachieved operating income of RMB1,613,063,300, an increase of 2.82% over the same period of the previous year; the net profitattributable to the parent Company's owner was RMB112,685,300, an increase of 1.07% over the same period of the previous year.Net profit after recurring gains and losses was RMB105,117,600, an increase of 8.26% over the same period of the previous year.By the end of the reporting period, the Company's order reserve reached RMB7,953,652,900 (excluding real estate pre-sale). Thisrepresents an increase of 26.97% over the same period in the previous year, which was 4.93 times the operating income in 2022H1, laying the foundation for the Company's production and operation in 2022.
(1) Smart curtain wall system and material
1. Industry development
The growth of the curtain wall industry is closely related to the level of development of the national economy. The stable andfavorable macroeconomic situation in China, as well as the ongoing urbanization process, provide a solid foundation for thegrowth of the curtain wall industry. The building of critical locations has been vigorously developed as China enters the high-quality development stage. There are an increasing number of large-scale high-end curtain wall projects in major places such asthe Guangdong-Hong Kong-Macao Greater Bay Area, the Yangtze River Delta, Chengdu, and Chongqing. On July 12, 2022, the
National Development and Reform Commission announced the implementation plan for new urbanization during the 14th FiveYear Plan period, emphasizing that China is still in an era of fast urbanization development, with a strong driving force forurbanization. At the same time, it put forth essential tasks such as growing public infrastructure construction, which has resulted insignificant market prospects for the curtain wall construction industry's long-term development.
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 hasbeen 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 worldwidecurtain 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. The domestic construction curtainwall market still offers a lot of room for growth for the industry's leaders.
Fangda Jianke Co., Ltd., a wholly-owned subsidiary of the Company, has the highest qualifications for curtain wall designand construction enterprises in China - the first-class qualification for professional contracting of architectural curtain wallengineering and the first-class qualification for architectural curtain wall engineering design. It is the leading enterprise in China'scurtain wall industry. Fangda Jianke has won the highest awards in the national construction industry, including "Luban Award","National Quality Engineering Award", "Zhan Tianyou Civil Engineering Award", "China Building Decoration Award", and over200 provincial and ministerial awards. Fangda Jianke has participated in drafting more than 20 national or industry standards,including "Energy-saving Design Standards for Public Buildings", setting 18 Chinese enterprise records. In the same industryacross the country, the Company is the earliest to establish R&D institutions such as corporate postdoctoral workstations,engineering technology centers, and curtain wall research and design institutes. The autonomous innovation capacity and technicallevel of the high-end curtain wall industry have reached the advanced level of the same industry in China, promoting technologicalprogress and development. Fangda trademark was named a "China Famous Trademark" and won "International Credit Brand".
(4) Business drive
In period During the, the curtain wall system and materials industry realized operating income of RMB1,150,768,400, anincrease of 4.89% over the same period of the previous year; the net profit was RMB58,028,500, an increase of 124.69%； with agross margin of 15.67%, up 1.39 percentages over the same period of last year. The key drivers of performance are as follows:
① Correct market placement, focusing on overall strength to secure high-quality orders
The Company adheres to the market positioning of high-end curtain walls at home and abroad in the first half of 2022, deeplycultivating key areas such as Guangdong, Hong Kong and Macao Bay area, Yangtze River Delta, Chengdu, and Chongqing. As aresult, orders continued to surge based on the record high in 2021. The total amount of high-end curtain wall and material industryorders won and signed by the Company during the reporting period was RMB3,074,850,600, an increase of 19.17% over the sametime the previous year. Large-scale projects and enterprise headquarters projects have grown, and international orders have
reached a new high. There are ten projects with contract values exceeding 100 million yuan. The single order quantity is enormous,the order quality is excellent, and the head enterprises' benefits are apparent. The high-end office building of more than 300meters-Jinan CITIC Pacific Central Business District (Jinan Zun) project; enterprise headquarters building-Anbang PropertyInsurance Shenzhen Headquarters Building, China Electronics Shenzhen Bay Super Headquarters Building, Shenzhen ZhongjinBuilding; overseas-the VMCTC project in Melbourne, Australia, and so on. The consistent increase in the number and quality oforders reflects the Company's excellent market competitiveness. By the end of the reporting period, the Company's order reserveof curtain wall system and materials industry was RMB6,364,428,900, an increase of 39.37% over the same period of the previousyear, which was 5.53 times the operating revenue of curtain wall system and materials industry in 2022 H1, laying a solidfoundation for the sustainable and healthy development of the Company.
② When technical innovation is prioritized, the entire process service system promotes high-quality development.The Company's subsidiaries in the smart curtain wall system and material industry are all national high-tech businesses, withtwo being "specialized, special, and innovative." During the reporting period, the Company has successively acquired 556 patentsfor curtain wall products and 19 software copyrights, including 39 software patents, and participated in the compilation of 22national technical specifications and standards. Its independent innovation capacity and technology have reached the advancedlevel in the same industry in China, which has effectively promoted the technological progress and development of the high-endcurtain wall industry. During the reporting period, the Company used continuous innovation to solve customer technical painpoints and supply products and technical solutions required by innovation. At the same time, the company offered technicalsupport for the project duration and quality, improved customer satisfaction and influence, and assisted and empowered theCompany's high-quality development with the whole process and all-around curtain wall project service system.
③ Create an efficient operation organization by promoting the development of intelligent and refined managementThe Company has actively created an efficient operation organization by promoting the development of intelligent andrefined management. The Company has introduced intelligent welding robots and automatic gluers that represent advancedtechnologies, as well as intelligent manufacturing production lines that represent the first of their kind. The Company has alsocreated an information management platform that primarily consists of the PMS project management platform, MES productionmanagement platform, and VPO supply management platform. It has realized data cloud transmission and working languagestandardization, accurate management and sharing of data flow, capital flow, and information flow, opened up variousmanagement modules, improved the scientificity of decision-making, sped up the response and execution ability to business, andrealized the refined data management of project management, effectively improving the Company's management level andoperation 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.
(2) 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. In recent years, rail transit has become more and moreimportant in urban development. It is predicted that 111 new rail transit lines will be constructed in 49 cities between 2022 and2023, including Guangzhou, Zhengzhou, Shanghai, Nanchang, Hangzhou and Nanning, generating a total mileage of 1224.96kilometers and 1243 stations with a total investment of 1780.314 billion yuan between 2022 and 2023.
By June 2022, 51 cities in 31 provinces (autonomous regions and municipalities directly under the central government) andXinjiang Production and Construction Corps had opened and operated 277 urban rail transit lines totaling 9067 kilometers,according to data provided by the Ministry of Transport. Urban rail transit operating lines in China continue to grow in length andnumber as cities develop rapidly. The operation demand of urban rail transit in China will grow continuously in the future, whichis conducive to the sustainable development of rail transit related industries. While the mileage of rail transit lines continues togrow, some rail transit PSD projects built in the early stage have also entered the maintenance period, and the maintenance servicebusiness will also usher in sustained and stable development space in the future.
2. Business Status
(1) Main products and purposes
The rail transit screen door system, which is put at the edge of the platform of urban rail transit stations to separate the trainfrom the platform waiting area, is the Company's major offering. Closed screen doors, full-height non-closed screen doors, andhalf-height screen doors are among the available product varieties. It plays a significant part in the operation of rail transit,guarantees its safety, and aids in the development of an energy- and environmentally-friendly rail transit operation system. Withmany domestic metro platform screen door projects entering the maintenance period, the Company actively expands the industrialchain and takes the lead in developing Metro maintenance business in China.
(2) Main business model
The Company is a supplier and service provider of rail transit PSD system integrating R&D, design, manufacturing,installation and commissioning and technical services, with a complete industrial chain. The Company mainly obtains orders byparticipating in project bidding, carries out customized design, process treatment, raw material procurement, production andinstallation of equipment system and provides technical maintenance services on the basis of independent research anddevelopment according to the requirements of different customers. The business model has not changed during the reportingperiod. Focusing on the whole life cycle service of rail transit platform screen door system, the Company promotes the applicationof new technology in the planning stage, provides high-quality products in the construction stage, improves customer operation
efficiency in the maintenance stage, and develops into an overall solution provider of rail transit platform screen door system inthe whole life cycle.
(3) Market competition pattern in which the Company is located and the Company's market positionAs the leading manufacturer of urban rail transit platform screen doors, the company is a global leader in this field. In China,it is one of the first national high-tech enterprises to develop, design, manufacture, install, and maintain platform screen doorsystems. It ranks in the forefront of the industry in terms of the number of patents and software copyrights it has obtained. As partof its contribution to filling a gap in the Chinese market, the company was responsible for preparing the first industry standard forplatform screen doors - the platform screen door of urban rail transit (CJ/T236-2022). Platform screen door systems of rail transitwith independent intellectual property rights have received the title of national key new products, have been recognized as"National Torch Plan Industrialization Demonstration Projects" by the Ministry of Science and Technology of the People'sRepublic of China, and have been recognized by the Ministry of Industry and Information Technology of the People's Republic ofChina as the "single champion product of manufacturing". The Company has been forging ahead in the domestic and foreignmarkets with its technical advantages for more than 20 years through continuous research and development. It has undertaken 110subway platform door projects in 44 cities around the world, and has become the largest rail transit platform screen door systemsupplier and service provider in the world. During the reporting period, the subsidiary Fangda Zhiyuan Technology was selected asthe "specialized, special and innovative" enterprise in Shenzhen.
(4) Business drive
① Leading market position, laying a solid foundation for development
In addition to providing integrated professional services of rail transit platform screen door systems products, the Company isa leading enterprise in the field of rail transit platform screen door systems in China, including R&D, design, manufacturing,installation, commissioning, technical services and maintenance, among others. It offers outstanding advantages such as safety,reliability, availability, and maintainability. The Company is one of the most trusted experts in the field of rail transit platformscreen door systems both at home and abroad.During the reporting period, the Company obtained orders for PSD system such as Wuhan Optics Valley Ecological Corridortourism supporting facilities - tourism special line phase I project, Shenzhen line 7 phase II, line 8 phase II and phase III projects,India NCRCTC project, Singapore Santosha platform door installation project, Colombia Bogota Metro Line 1 project, as well as anumber of orders for professional technical maintenance services for PSD metro projects. Among them, the order for the platformscreen door system of Bogota Metro Line 1 in Colombia is the first project of the Company in Latin America, as well as the firstrail transit project in Bogota, the capital of Colombia, which opens a new business territory for the Company. During the reportingperiod, the Company's rail transit PSD industry had achieved an operating revenue of RMB300,269,800, an increase of 12.17%from the same period last year, and an order reserve of RMB1,589,224,000, which was 5.29 times of the operating revenue. TheCompany has been recognized by many owners during the reporting period, including Nanjing Metro Company, Fuzhou MetroGroup, Xi'an Rail Transit Group, Wuhan Metro Group, Hohhot Metro Company, etc. for its high-quality performance andprofessional service, which demonstrates the owner's high recognition and affirmation of the Company.
②Create excellent projects with solid quality and advanced technology
The Company attaches great importance to technology accumulation and sustainable innovation, takes innovation as thedriving force of the company's sustainable development, accelerates scientific and technological innovation and achievementtransformation, and maintains its leadership position in the industry. The sea crossing section of Hong Kong East Rail line, KualaLumpur MRT Line 2 and Fuzhou Metro Line 5 (phase I) with the Fangda platform screen door system was successfully opened totraffic during the reporting period. One of these is the platform screen door system of rail transit in the sea crossing section of theHong Kong East Rail line, which completely took into account ergonomic aspects and carried out the reliability design of theplatform screen door system with big span and long platform. The combination of the passenger detection design of the thresholdpressure bar with the resolution of the reliability design issue of the safety circuit brought on by the pressure drop and therealization of technical innovation are firsts in the sector. A significant building project under "the Belt and Road" initiative that
was finished in six years was the Kuala Lumpur MRT Metro Line 2 project. The project team of the company overcame a numberof challenging issues, including new construction and assembly processes and full-automatic software and hardware systemdebugging, and stayed on-site during the height of the epidemic in Malaysia. This achievement fully guaranteed the high-qualityconstruction of the project and perfectly interpreted the power of "made in China." After the phase I and phase II projects ofFuzhou Metro Line 1, Fuzhou Metro Line 5 is the third line of the Fangda rail transit platform door system that the company hasopened in Fuzhou, which demonstrates the high recognition of customers to the Company and the continuous improvement ofbrand influence. In the future, the Company will continue to create excellent projects with solid quality and advanced technology.
(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.
(4) Real Estate
1. Changes of macroeconomic situation and industrial policy environment related to the real estate industry; industrialdevelopment status and policies of the city where the Company's main projects are located, and its impact on the future operatingperformance and profitability of the listed company;
A meeting of the Political Bureau of the CPC Central Committee was held on July 28, 2022. It was stated that it wasnecessary to stabilize the real estate market, adhere to the positioning that houses are used for living rather than for speculation,and make full use of the policy toolbox for the implementation of urban policies, support rigid and improving housing demand,consolidate local government responsibilities, ensure housing delivery and stabilize the livelihood of the citizens. The supply anddemand sides of the real estate market are expected to improve in the second half of the year as well as the stabilization policies.As large cities and key metropolitan areas expand, urban renewal, smart cities and other trends develop, the demand for industrialupgrading, consumption upgrading and housing improvements will grow.
The Company's real estate projects are in Shenzhen and Nanchang. Shenzhen's market remains relatively concentrated interms 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 leadingdemonstration area. In the long run, the first tier cities such as Shenzhen are short of land resources, the population will continue togrow in the future, the real estate still has room for appreciation.
As a result of the epidemic and economic downturn, supply and demand in Nanchang's real estate market decreasedsignificantly in the first half of 2022, and transactions in the commercial market were slow. Under the influence of the real estatemarket policies, the transaction volume is expected to increase in the second half of the year.
Affected by the macro-economy and the regulation of the real estate industry, the sales volume and business gross profitmargin of the Company's real estate sector will be affected to a certain extent, but it is expected to contribute profits to theCompany.
2. The Company's main business model, business project format, market position and competitive advantage, main risks andcountermeasures
The 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 96.28%, and the leasing rate of self owned properties was
84.86%. 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 30.23%,and the occupancy rate of self-owned properties was 78.77%.
The Company's real estate industry will still face risks such as national macro policy regulation, market competition, and theimpact of the new crown epidemic in the future. The Company will comply with policy changes, continue to in-depth optimizationin brand building, marketing and promotion, reduce operational and management risks, and maintain the Company's steadydevelopment.
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) |
| None |
4. Total land reserve
| Project/region name | Floor area (10,000 m2) | Total building area (10,000 m2) | Remaining building area (10,000 m2) |
| None |
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 |
| Honggutan New District, Nanchang | Fangda Center | No.1516 Ganjiang North Avenue Fangda Center | Office commercial complex | 100.00% | May 1, 2018 | 100% | 100.00% | 16,608.55 | 66,432.61 | 0 | 65,376.94 | 67,000 | 66,992.35 |
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 | 93,086.25 | 89,621.65 | 736.83 | 3,797.85 | 89,621.65 | 736.83 | 3,797.85 |
| Honggutan New District, Nanchang | Fangda Center | No.1516 Ganjiang North Avenue Fangda Center | Office commercial complex | 100.00% | 65,376.94 | 25,996.84 | 7,857.71 | 303.32 | 387.01 | 7,857.71 | 303.32 | 387.01 |
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 | 80,868.23 | 84.86% |
| Shenzhen Fangda Building | Shenzhen Nanshan District | Office building | 100.00% | 17,432.38 | 14,219.73 | 81.57% |
| Jiangxi Nanchang Science and Technology Park | Nanchang, Jiangxi Province | Plant and office building | 100.00% | 17,517.20 | 3,664.20 | 20.90% |
| Jiangxi Nanchang Fangda Center | Nanchang, Jiangxi Province | Commercial and office building | 100.00% | 37,725.82 | 29,717.51 | 78.77% |
8. First-level development of land
□ Applicable ? Inapplicable
9. Financing channel
| Financing source | Ending financing balance | Financing cost range / average financing cost | Term structure | |||
| Within 1 year | 1-2 years | 2-3 years | Over 3 years | |||
| Bank loan | 136,850.00 | The benchmark interest rate of | 7,000.00 | 10,550.00 | 21,200.00 | 98,100.00 |
| loans in the same period shall be adjusted according to the agreed proportion | ||||||
| Total | 136,850.00 | 7,000.00 | 10,550.00 | 21,200.00 | 98,100.00 |
10. Development strategy and operation plan in next year
Shenzhen's epidemic prevention remains stable and economic recovery is strong, and the original driving force of the industryis strong. At the same time, the concept of Guangdong Hong Kong Macao Bay Area has matured, and the integration of Shenzhenand Hong Kong is continuing, which contains huge investment potential. In the future, the Company will continue to expand thebrand effect, deepen the local market, and effectively improve the Company's operating performance.The main task of the Company's real estate sector in 2022 is to promote the sales of Shenzhen Fangda Town project andvigorously promote the sales of Nanchang Fangda Center project. In addition, the Company will integrate and optimize theexisting resources of the Company in accordance with the latest policies, as well as steadily promote the application and approvalof the Shenzhen Henggang Dakang project and the Shenzhen Fuyong Fang Da Bangshen urban renewal project.
11. Bank mortgage loan guarantee provided for commercial housing purchasers
? Applicable □ Inapplicable
As of June 30, 2022, the balance of the Company's guarantee for commercial housing offenders due to bank mortgage loanswas RMB35,265,600.
12. Co-investment between Directors, supervisors and senior management and listed companies
□ Applicable ? Inapplicable
II. Core Competitiveness Analysis
(1) Smart curtain wall system and material
1. Advantages of technology and industry experience
Through over 30 years of hard work in the field of high-end smart curtain wall and the development of environmentalprotection and energy-saving curtain wall products through technological innovation, the Company has grasped the developmenttrend of curtain wall industry in the process of meeting market demand, improved the competitiveness of the Company's products,solutions and services, and accumulated rich experience in project design and implementation and well-known cases.
As the leading enterprise in the curtain wall industry, the Company took the lead in setting up enterprise postdoctoralworkstation, engineering technology center, Curtain Wall Research and Design Institute and other R&D institutions in the sameindustry in China, and was selected as the "top 500 innovation index of Chinese listed companies" for three consecutive years. Ithas created many firsts in the industry and is one of the preferred brands in the domestic high-end curtain wall system materialindustry. The Company's subsidiaries engaged in the smart curtain wall system and material industry are all national high-techenterprises, two subsidiaries are selected as "specialized, special and innovative" enterprises, and many subsidiaries are recognizedas "Guangdong Intellectual Property Demonstration Enterprise", "Shenzhen Intellectual Property Advantage unit", "Jiangxienterprise technology center" and "Nanchang engineering technology research center". The Company's independent innovationand 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 been highly recognized by the industry and many professionals with its own productand technical 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. Fangda trademark has been recognized as "China's well-known trademark" andwon the title of "international reputable brand". It has created thousands of landmark projects and has become one of the leadingbrands in the field of high-end curtain wall in China.
4. Industrial layout advantages
In order to better serve the market and meet the growing demand for orders, after years of accumulation and continuousinvestment in facilities and equipment, the curtain wall system and material industry of the Company has built a domesticindustrial layout with Shenzhen as the headquarters and production bases in Shanghai, Chengdu, Nanchang, Dongguan, Foshanand other places. Among them, Dongguan Songshanhu base is one of the most modern high-end curtain wall system productionbases in the industry, It has industry-leading R&D, design, manufacturing and curtain wall system delivery capabilities. TheCompany's production base continues to increase digital and intelligent construction, introduces intelligent equipment, and usesInternet technology to track the Company's products and continuously improve efficiency. The layout of the production baseprovides an important 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 ofemployees, 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.
(2) Rail transport screen door business
1. Technical advantage
The Company has always attached importance to technological innovation, took the lead in developing the rail transit PSDsystem with independent intellectual property rights in China, broke the monopoly of foreign enterprises in the field of China's railtransit PSD, and the product performance is at the international leading level. China's first industrial standard of platform screendoors of urban rail transit prepared by the Company was implemented on March 1, 2007, filling the gap in this field in China andhaving guiding significance for the development of platform screen doors of rail transit in China. In 2017, the Ministry of Housingand Urban-Rural Development has initiated the revision of the industry standard for the City Rail Platform Screen Doors, the
Company continues to undertake the main editing tasks. The revised platform screen door of urban rail transit (CJ/T236-2022) hasbeen approved to be implemented from May 1, 2022, demonstrating Fangda's continuous comprehensive leading strength andindustry benchmark position in the field of urban rail transit equipment. As a single champion product of the manufacturingindustry, the company's "urban rail transit platform safety door" has been recognized by the Ministry of Industry and InformationTechnology of the People's Republic of China, and it has successfully passed a joint safety assessment of the independent safetyassessment parties, Jiaotong Railway Inspection and Certification (Shanghai) Co., Ltd., obtaining the highest level of safetyintegrity (SIL) 4 certificate from Lloyd's Quality Certification (Shanghai) Co., Ltd. The technological level has attained the higheststandard in the sector after meeting the technical requirements of unmanned GoA4. During the reporting period, the controllingsubsidiary Fangda Zhiyuan Technology was selected as the "specialized, special and innovative" enterprise in Shenzhen.
2. market advantage
The company is the pioneer and leader of the platform screen door system of rail transit in China, and its products havecovered 70% of the cities where the subway has been opened in China. Among the existing customer cities, the Company'sproducts have been applied to the platform screen doors of the first metro line in 12 cities. As part of the "Belt and RoadInitiative," the Company has successfully received important project orders in Singapore, Malaysia, Thailand, and other countriesand regions 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. Nowadays, the recognition of Fangda brand overseas has been increasing, and it has become the largest manufacturer andservice provider 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, and technical services as part of the whole industry chain. A complete industrial chainhelps the Company to realize resource sharing at all stages and meet the market demand for specialized products and services,thereby effectively reducing the Company's production and management costs and improving profitability and competitiveadvantages.
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.
(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.
(4) 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 analysisOverviewSee I. Major businesses of the Company during the Report PeriodYear-on-year changes in major financial data
In RMB
| This report period | Same period last year | YOY change (%) | Reason | |
| Turnover | 1,613,063,315.30 | 1,568,778,834.98 | 2.82% | |
| Operating cost | 1,259,515,842.60 | 1,208,641,803.18 | 4.21% | |
| Sales expense | 23,296,105.78 | 25,434,914.81 | -8.41% | |
| Administrative expense | 74,193,251.57 | 69,502,453.93 | 6.75% | |
| Financial expenses | 39,629,782.88 | 46,837,312.30 | -15.39% | |
| Income tax expenses | 13,005,121.74 | 13,936,493.66 | -6.68% | |
| R&D investment | 72,809,311.17 | 78,645,594.86 | -7.42% | |
| Cash flow generated by business operations, net | -500,924,545.00 | 38.80% | Mainly due to the increase of cash flow from real estate business operating activities compared with last year | |
| Cash flow generated by investment activities, net | -123,073,771.02 | -120,811,183.94 | -1.87% | |
| Net cash flow generated by financing activities | 127,563,558.23 | 181,319,639.10 | -29.65% | |
| Net increase in cash and cash equivalents | -298,333,058.20 | -441,087,443.61 | 32.36% | Mainly due to the improvement of net cash flow from operating activities compared with last year |
| Taxes and surcharges | 23,203,954.56 | 35,853,693.88 | -35.28% | mainly due to the decrease in land appreciation tax in the real estate business |
| Investment impairment loss ("-" for loss) | -27,659,612.75 | 3,466,913.89 | -897.82% | Mainly due to the provision for impairment of contract assets in the current period |
Major changes in profit composition or sources during the report period
□ Applicable ? Inapplicable
The profit composition or sources of the Company have remained largely unchanged during the report period.
Turnover composition
In RMB
| This report period | Same period last year | YOY change (%) | |||
| Amount | Proportion in operating costs (%) | Amount | Proportion in operating costs (%) | ||
| Total turnover | 1,613,063,315.30 | 100% | 1,568,778,834.98 | 100% | 2.82% |
| Industry | |||||
| Metal production | 1,150,768,372.43 | 71.34% | 1,097,171,007.07 | 69.94% | 4.89% |
| Railroad industry | 300,269,751.24 | 18.61% | 267,687,038.55 | 17.06% | 12.17% |
| Real estate | 144,893,896.06 | 8.98% | 188,235,871.36 | 12.00% | -23.03% |
| New energy industry | 8,159,691.65 | 0.51% | 8,323,350.81 | 0.53% | -1.97% |
| Others | 8,971,603.92 | 0.56% | 7,361,567.19 | 0.47% | 21.87% |
| Product | |||||
| Curtain wall system and materials | 1,150,768,372.43 | 71.34% | 1,097,171,007.07 | 69.94% | 4.89% |
| Subway screen door and service | 300,269,751.24 | 18.61% | 267,687,038.55 | 17.06% | 12.17% |
| Real estate lease and sales | 144,893,896.06 | 8.98% | 188,235,871.36 | 12.00% | -23.03% |
| PV power generation products | 8,159,691.65 | 0.51% | 8,323,350.81 | 0.53% | -1.97% |
| Others | 8,971,603.92 | 0.56% | 7,361,567.19 | 0.47% | 21.87% |
| District | |||||
| In China | 1,486,925,226.37 | 92.18% | 1,465,806,008.64 | 93.44% | 1.44% |
| Out of China | 126,138,088.93 | 7.82% | 102,972,826.34 | 6.56% | 22.50% |
Industries, products or districts that take more than 10% of the Company's business turnover or 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 | 1,150,768,372.43 | 970,430,527.24 | 15.67% | 4.89% | 3.18% | 1.39% |
| Railroad industry | 300,269,751.24 | 235,598,732.98 | 21.54% | 12.17% | 25.22% | -8.18% |
| Real estate | 144,893,896.06 | 49,274,174.34 | 65.99% | -23.03% | -35.19% | 6.39% |
| Product | ||||||
| Curtain wall system and materials | 1,150,768,372.43 | 970,430,527.24 | 15.67% | 4.89% | 3.18% | 1.39% |
| Subway screen door and service | 300,269,751.24 | 235,598,732.98 | 21.54% | 12.17% | 25.22% | -8.18% |
| Real estate lease and sales | 144,893,896.06 | 49,274,174.34 | 65.99% | -23.03% | -35.19% | 6.39% |
| District | ||||||
| In China | 1,486,925,226.37 | 1,155,521,680.35 | 22.29% | 1.44% | 2.80% | -1.02% |
Main business statistics adjusted in the recent one year with the statistics criteria adjusted in the report period
□ Applicable ? Inapplicable
IV. Non-core business analysis
? Applicable □ Inapplicable
In RMB
| Amount | Profit percentage | Reason | Whether continuous | |
| Investment income | 4,595,678.43 | 3.61% | No | |
| Gain/loss caused by changes in fair value | 1,180,840.01 | 0.93% | No | |
| Assets impairment | -27,659,612.75 | -21.72% | Provision for impairment of contract assets | No |
| Non-operating revenue | 446,386.82 | 0.35% | No | |
| Non-business expenses | 2,578,001.31 | 2.02% | Mainly charity donation | No |
| Credit impairment loss | 25,016,298.34 | 19.64% | Reversed bad debt reserves of accounts receivable | No |
V. Assets and Liabilities
1. Major changes in assets composition
In RMB
| End of the report period | End of last year | Change (% ) | Notes | |||
| Amount | Proportion in total assets | Amount | Proportion in total assets | |||
| Monetary capital | 1,031,315,109.82 | 8.31% | 1,287,563,759.32 | 10.50% | -2.19% | |
| Account receivable | 555,641,568.67 | 4.48% | 556,453,824.20 | 4.54% | -0.06% | |
| Contract assets | 2,047,054,849.24 | 16.49% | 1,782,947,673.13 | 14.54% | 1.95% | |
| Inventory | 718,612,534.55 | 5.79% | 733,280,924.98 | 5.98% | -0.19% | |
| Investment real estate | 5,763,260,414.20 | 46.43% | 5,765,352,393.13 | 47.02% | -0.59% | |
| Long-term share equity investment | 55,185,971.99 | 0.44% | 55,218,946.14 | 0.45% | -0.01% | |
| Fixed assets | 681,823,427.57 | 5.49% | 663,414,297.61 | 5.41% | 0.08% | |
| Construction in process | 2,839,581.23 | 0.02% | 11,642,444.21 | 0.09% | -0.07% | |
| Use right assets | 25,002,936.05 | 0.20% | 31,440,856.54 | 0.26% | -0.06% | |
| Short-term loans | 1,622,891,137.62 | 13.08% | 1,287,474,398.65 | 10.50% | 2.58% | |
| Contract liabilities | 172,157,564.27 | 1.39% | 180,186,877.15 | 1.47% | -0.08% | |
| Long-term loans | 1,298,500,000.00 | 10.46% | 1,333,500,000.00 | 10.88% | -0.42% | |
| Lease liabilities | 15,837,405.86 | 0.13% | 19,152,093.31 | 0.16% | -0.03% |
2. Major foreign assets
□ Applicable ? Inapplicable
3. 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 | 32,133,168.82 | ||||||
| 2. Derivative financial assets | 1,069,587.62 | 1,768,884.99 | ||||||
| 3. Receivable financing | 4,263,500.00 | 19,031,714.87 | ||||||
| 4. Other non-current financial assets | 7,525,408.24 | -20,657.41 | 7,504,750.83 | |||||
| 5. Investment in other equity tools | 14,180,652.65 | -18,161,200.54 | 14,180,652.65 | |||||
| Subtotal | 52,174,390.40 | -20,657.41 | -18,161,200.54 | 0.00 | 0.00 | 0.00 | 0.00 | 74,619,172.16 |
| Investment real estate | 5,755,216,580.10 | 1,068,328.60 | 67,142,127.21 | -2,935,603.51 | 5,753,349,305.19 | |||
| Total | 5,807,390,970.50 | 1,047,671.19 | 48,980,926.67 | -2,935,603.51 | 5,827,968,477.35 | |||
| Financial liabilities | 11,871.20 | 1,840,691.89 | ||||||
Other changeOther changes in investment real estate are RMB-2,935,603.51, which is caused by the change of some real estate from lease toself use.Major changes in the assets measurement property of the Company in the report period
□ Yes ? No
4. Right restriction of assets at the end of the period
| Item | Closing book value (RMB) | Reason |
| Monetary capital | 437,397,096.43 | Various deposits |
| Notes receivable | 34,787,478.67 | Bills endorsed or discounted but not yet due |
| Account receivable | 46,114,021.14 | Loan by pledge |
| Fixed assets | 45,126,026.61 | Loan by pledge |
| Investment real estate | 3,303,793,976.13 | Loan by pledge |
| Other non-current assets | 311,792,353.94 | Loan by pledge |
| Equity pledge | 200,000,000.00 | 100% stake in Fangda Property Development held by the Company |
| Total | 4,379,010,952.92 |
VI. Investment
1. General situation
□ Applicable ? Inapplicable
2. Major equity investment in the report period
□ Applicable ? Inapplicable
3. Major non-equity investment in the report period
□ Applicable ? Inapplicable
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
In RMB10,000
| Deriv | Relati | Relate | Type | Initial | Start | End | Initial | Amou | Amou | Impai | Closin | Propo | Actua |
| ative investment operator name | onship | d transaction | amount | date | date | investment amount | nt in this period | nt sold in this period | rment provision (if any) | g investment amount | rtion of closing investment amount in the closing net assets in the report period | l gain/loss in the report period | |
| Shanghai Futures Exchange | No | No | Shanghai aluminum | 500.55 | July 27, 2021 | June 30, 2022 | 500.55 | 869.71 | 500.55 | 0.00 | 869.71 | 0.16% | 54.25 |
| Banks | No | No | Forward foreign exchange | 1,454.22 | May 18, 2021 | June 30, 2022 | 1,454.22 | 5,018.26 | 3,301.46 | 0.00 | 3,171.02 | 0.57% | 70.07 |
| Total | 1,954.77 | -- | -- | 1,954.77 | 5,887.97 | 3,802.01 | 0.00 | 4,040.73 | 0.73% | 124.32 | |||
| Capital source | Self-owned fund | ||||||||||||
| Lawsuit (if any) | None | ||||||||||||
| Disclosure date of derivative investment approval by the Board of Directors (if any) | October 30, 2021 | ||||||||||||
| Risk analysis and control measures for the derivative holding in the report period (including without limitation market, liquidity, credit, operation and legal risks) | The Company's aluminum futures hedging and foreign exchange derivatives trading business are all derivatives investment business. 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 and related assumptions and parameters. | Fair value of derivatives are measured at open prices in the open market | ||||||||||||
| Material changes in the accounting policies and rules related to the derivative in the report period compared to last period | None | ||||||||||||
| Opinions of independent directors on the Company's derivative investment and risk controlling | None | ||||||||||||
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 Jianke | Subsidiaries | Curtain wall system and materials | 500,000,000.00 | 4,182,273,758.31 | 1,280,061,375.25 | 1,040,291,157.14 | 65,940,495.17 | 60,187,739.84 |
| Fangda Zhiyuan | Subsidiaries | Subway screen door and service | 105,000,000.00 | 830,299,680.04 | 265,826,136.06 | 300,269,751.24 | 8,281,306.39 | 7,762,199.82 |
| Kechuangyuan | Subsidiaries | Subway screen door and service | 5,000,000.00 | 82,674,645.52 | 65,637,844.54 | 21,908,460.00 | 20,786,945.47 | 17,926,839.02 |
| Fangda Property | Subsidiaries | Real estate | 200,000,000.00 | 5,874,071,528.92 | 2,503,366,846.86 | 96,524,719.40 | 26,191,115.66 | 19,669,422.88 |
Acquisition and disposal of subsidiaries in the report period
□ Applicable ? Inapplicable
Major joint-stock companiesDuring the reporting period, the operating income of the Company is RMB1,040,291,157.14, of which the main business incomeis RMB1,038,468,092.00, and the operating profit is RMB65,940,495.17, of which the main business profit is RMB64,742,287.55;During the reporting period, the operating income of Kechuangyuan Company was RMB21,908,460.00, all of which were themain business income, and the operating profit was RMB20,786,945.47, all of which were the main business profit; During thereporting period, the operating income of Fangda Real Estate Company was RMB96,524,719.40, which was mainly from business.The operating profit was RMB26,191,115.66, which was mainly from business.IX. Structural entities controlled by the Company
□ Applicable ? Inapplicable
X. Risks facing the Company and measures
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 information construction system, widely apply new technologies and processes, strengthenstaff skill 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.
5. Uncertain risk of epidemic impact
The impact of the COVID-19 epidemic on the global social economy is still continuing. If the epidemic cannot be timely andeffectively contained for a long time, it will have an impact on the Company's external business development and internaloperation and management. Furthermore, it will pose many challenges and adverse effects on raw material supply, logistics andtransportation, marketing, personnel flow, project implementation, etc. It will adversely affect the Company's future businessperformance due to the increase in cost and risk associated with enterprise operation and management. The Company will payclose attention to the development of the epidemic, actively assess the impact on the Company's financial situation and operatingresults, actively study and judge the market trend, adopt effective business strategies and response plans, vigorously prevent andcontrol capital chain risks, and strive to maintain stable operation.
Chapter IV Corporation Governance
I. 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 | The following proposals were considered and adopted: 1. 2021 work report of the Board of Directors; 2. 2021 work report of the Board of Supervisors; 3. Full text and summary of 2021 annual report; 4. 2021 financial final accounts report; 5. 2021 profit distribution plan; 6. Proposal on applying for credit and providing guarantee to banks and other financial institutions; 7. Proposal on the engagement of audit institutions for 2022. |
2. Shareholders of preference shares of which voting right resume convening an extraordinaryshareholders' meeting
□ Applicable ? Inapplicable
II. Changes in the Directors, Supervisors and Senior Executives
□ Applicable ? Inapplicable
The Company's Directors, supervisors and senior management have remained unchanged during the report period. For details,please refer to the 2021 annual report.III. Profit Distribution and Reserve Capitalization in the Report Period
□ Applicable ? Inapplicable
The Company distributed no cash dividends or bonus shares and has no reserve capitalization plan.
IV. 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
V. Environmental and social responsibility
1. Environmental protection
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 |
| None | None | None | None | None | None |
Refer to other environmental information disclosed by key pollutant discharge unitsNoneMeasures 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. The Company's "full height open platform screen door of rail transit" technologyhas reduced the energy consumption of air conditioning and ventilation system by more than 20%, and the products of double-layer breathing curtain wall system save energy by more than 30% compared with the traditional curtain wall. The Company's newenergy industry generated 8.23 million degrees of solar photovoltaic power in the first half of 2022, reducing carbon dioxideemissions by nearly 8,400 tons, contributing to the goal of "carbon peak, carbon neutralization".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. The corporation and itsaffiliates are not among the significant pollutant emission units listed by the environmental protection department during thereporting period.The Company advocates energy conservation and emission reduction, safety and environmental protection, and adheres to thecomprehensive 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 informationDuring 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.
2. Social responsibilities
Over 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.During the reporting period, the Company's funds for social public welfare undertakings totaled RMB2,338,000. To supportthe village's collective breeding industry project, RMB1.6 million was donated to Miaoqian village, Ji'an County, Jiangxi Province,the old revolutionary base. It played an important role in stimulating the revitalization of the village's industrial sector and thestrengthening of its collective economy, alleviating poverty, increasing farmers' incomes, and contributing to rural revitalization.The value of anti-epidemic materials donated by frontline anti-epidemic personnel amounted to RMB651,000.
Chapter VI Significant Events
I. Commitments that have been fulfilled and not fulfilled by actual controller, shareholders,related parties, 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
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. Engaging and dismissing of CPAWhether the interim financial report is audited
□ Yes ? No
The interim report for H1 2015 has not been audited.
V. Statement of the Board on the “non-standard auditors' report” issued by the CPA on thecurrent report period
□ Applicable ? Inapplicable
VI. Statement of the Board of Directors on the Non-standard Auditor's Report for H1 2014
□ Applicable ? Inapplicable
VII. Bankruptcy and capital reorganizing
□ Applicable ? Inapplicable
The Company has no bankruptcy or reorganization events in the report period.VIII. LawsuitSignificant lawsuit and arbitration
□ Applicable ? Inapplicable
The Company has no significant lawsuit or arbitration affair in the report period.
Other lawsuit? 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) | 11,595.09 | 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) | 4,287.58 | 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 |
IX. Punishment and rectification
□ Applicable ? Inapplicable
X. Credibility of the Company, controlling shareholder and actual controller? Applicable □ InapplicableThe 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.XI. 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.XII. 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 |
| None | ||||||||||
| Guarantee provided to subsidiaries | ||||||||||
| Guarantee provided to | Date of disclosure | Guarantee amount | Actual date | Actual amount of guarantee | Type of guarantee | Collateral | Counter collateral | Term | Completed or not | Related party |
| Fangda Jianke | March 23, 2021 | 50,000 | July 27, 2021 | 50,000 | Joint and several liability guarantee | None | None | since engage of contract to 3 years upon due of debt | No | Yes |
| Fangda Jianke | March 23, 2021 | 24,000 | March 9, 2022 | 20,507.78 | Joint and several liability guarantee | None | None | since engage of contract to 3 years upon due of debt | No | Yes |
| Fangda Jianke | April 28, 2020 | 30,000 | January 29, 2021 | 3,925.61 | Joint and several liability guarantee | None | None | since engage of contract to 3 years upon due of debt | No | Yes |
| Fangda Jianke | March 23, 2021 | 40,000 | September 18, 2021 | 26,435.71 | Joint and several liability guarantee | None | None | since engage of contract to 3 years upon due of debt | No | Yes |
| Fangda Jianke | March 23, 2021 | 30,000 | August 18, 2021 | 19,925.7 | Joint and several liability guarantee | None | None | since engage of contract to 3 years | No | Yes |
| upon due of debt | ||||||||||
| Fangda Jianke | March 23, 2021 | 25,000 | November 17, 2021 | 15,818.14 | Joint and several liability guarantee | None | None | since engage of contract to 3 years upon due of debt | No | Yes |
| Fangda Jianke | March 30, 2022 | 15,000 | May 23, 2022 | 7,000 | Joint and several liability guarantee | None | None | since engage of contract to 2 years upon due of debt | No | Yes |
| Fangda Jianke | March 23, 2021 | 48,000 | December 17, 2021 | 27,946.25 | Joint and several liability guarantee | None | None | since engage of contract to 3 years upon due of debt | No | Yes |
| Fangda Jianke | March 23, 2021 | 60,000 | December 21, 2021 | 4,170.55 | Joint and several liability guarantee | None | None | since engage of contract to 3 years upon due of debt | No | Yes |
| Fangda Jianke and Fangda Zhichuang | January 30, 2019 | 14,000 | December 18, 2019 | 7,739.91 | Joint and several liability guarantee | None | None | since engage of contract to 3 years upon due of debt | No | Yes |
| Fangda Zhiyuan | March 23, 2021 | 40,000 | July 7, 2021 | 12,947.55 | Joint and several liability guarantee | None | None | since engage of contract to 3 years upon due of debt | No | Yes |
| Fangda Zhiyuan | March 23, 2021 | 15,000 | March 9, 2022 | 2,602.45 | Joint and several liability guarantee | None | None | since engage of contract to 3 years upon due of debt | No | Yes |
| Fangda Zhiyuan | April 28, 2020 | 20,000 | January 29, 2021 | 391.3 | Joint and several liability guarantee | None | None | since engage of contract to 3 years upon due of debt | No | Yes |
| Fangda Zhiyuan | March 23, 2021 | 15,000 | September 28, 2021 | 5,598.64 | Joint and several liability guarantee | None | None | since engage of contract to 3 years upon due of debt | No | Yes |
| Fangda Zhiyuan | March 30, 2022 | 10,000 | May 23, 2022 | Joint and several liability guarantee | None | None | since engage of contract to 2 years upon due of debt | No | Yes | |
| Fangda Zhiyuan | March 23, 2021 | 5,000 | August 12, 2021 | 5,000 | Joint and several liability guarantee | None | None | since engage of contract to 3 years upon due of debt | No | Yes |
| Kechuangyuan | March 23, 2021 | 1,000 | September 30, 2021 | 1,000 | Joint and several liability guarantee | None | None | since engage of contract to 3 years upon due of debt | No | Yes |
| Fangda New Material | March 23, 2021 | 6,500 | July 30, 2021 | 2,895.66 | Joint and several liability guarante | None | None | since engage of contract | No | Yes |
| e | to 3 years upon due of debt | |||||||||
| Fangda New Material | March 30, 2022 | 10,000 | April 20, 2022 | 2,161.12 | Joint and several liability guarantee | None | None | since engage of contract to 2 years upon due of debt | No | Yes |
| Fangda Property | December 4, 2019 | 135,000 | February 25, 2020 | 91,000 | Joint and several liability guarantee | Yes, the pledge is 100% equity of Fangda Property | None | since engage of contract to 2 years upon due of debt | No | Yes |
| Fangda Property | April 28, 2020 | 47,000 | December 16, 2020 | 45,850 | Joint and several liability guarantee | None | None | since engage of contract to 3 years upon due of debt | No | Yes |
| Fangda Zhijian | March 30, 2022 | 7,000 | June 1, 2022 | 3,740.09 | Joint and several liability guarantee | None | None | since engage of contract to 3 years upon due of debt | No | Yes |
| Fangda Yunzhu | March 30, 2022 | 600 | May 10, 2022 | 184.63 | Joint and several liability guarantee | None | None | since engage of contract to 3 years upon due of debt | No | Yes |
| Total of guarantee to subsidiaries approved in the report term (B1) | 452,100 | Total of guarantee to subsidiaries actually occurred in the report term (B2) | 239,133.70 | |||||||
| Total of guarantee to subsidiaries approved as of the | 648,100 | Total of balance of guarantee actually provided to the | 356,841.08 | |||||||
| report term (B3) | subsidiaries as of end of report term (B4) | |||||||||
| 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 |
| None | ||||||||||
| Total of guarantee provided by the Company (total of the above three) | ||||||||||
| Total of guarantee approved in the report term (A1+B1+C1) | 452,100 | Total of guarantee occurred in the report term (A2+B2+C2) | 239,133.70 | |||||||
| Total of guarantee approved as of end of report term (A3+B3+C3) | 648,100 | Total of guarantee occurred as of the end of report term (A4+B4+C4) | 356,841.08 | |||||||
| Percentage of the total guarantee occurred (A4+B4+C4) on net asset of the Company | 63.92% | |||||||||
| Including: | ||||||||||
| Guarantee provided directly or indirectly to objects with over 70% of liability on asset ratio (E) | 5,056.77 | |||||||||
| Amount of guarantee over 50% of the net asset (F) | 77,712.02 | |||||||||
| Total of the above 3 (D+E+F) | 77,712.02 | |||||||||
| 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 | None | |||||||||
| Statement of external guarantees violating the procedure | None | |||||||||
3. Entrusted wealth management
? Applicable □ Inapplicable
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 | 49,840.08 | 3,213.32 | 0 | 0 |
| Total | 49,840.08 | 3,213.32 | 0 | 0 | |
Specific circumstances of high-risk entrusted financing with large individual amount or low security, poor liquidity, and no cost
protection
□ Applicable ? Inapplicable
Entrusted financial management expected to fail to recover the principal or likely result in impairment
□ Applicable ? Inapplicable
4. Other significant contract
□ Applicable ? Inapplicable
The Company entered into no other significant contract in the report.
13. Other material events
? Applicable □ Inapplicable
1. According to the Company's development strategy and in combination with the development needs of the holdingsubsidiary Fangda Zhichuang Technology rail transit PSD system industry, the board of directors of the Company agreed to planthe domestic listing of Fangda Zhichuang Technology, and authorized the Company and Fangda Zhichuang Technologymanagement to start the planning of the domestic listing of Fangda Zhichuang Technology. On May 14, 2021, the companydisclosed the suggestive announcement on Authorizing the management of the Company to start the planning of domestic listingof spin off holding subsidiaries. As of the disclosure date of this report, Fangda Zhichuang Technology has completed the joint-stock transformation of the Company and has been renamed "Fangda Zhiyuan Technology Co., Ltd.". On August 26, 2022, the15th meeting of the ninth Board of Directors of the Company deliberated and approved the proposal on the initial public offeringand listing on the growth enterprise market of Fangda Zhiyuan Technology Co., Ltd., a subsidiary of the Company, and made anannouncement on the designated information disclosure media on August 30, 2022. As for the follow-up work of the listing of thesplit holding subsidiary, the Company will perform the information disclosure obligation according to the progress of the project.
2. On Octber 22, 2021, the Company signed the cooperation framework agreement on Wan'an Fangda photovoltaic buildingintegration (BIPV) and distributed photovoltaic power generation project with the People's Government of Wan'an County, JiangxiProvince, to develop photovoltaic building integration (BIPV) and distributed photovoltaic power generation projects within theagreed scope of Wan'an county. On October 25, 2021, the Company disclosed the announcement on signing the cooperationframework agreement of Wan'an Fangda photovoltaic building integration (BIPV) and distributed photovoltaic power generationproject, and communicated and discussed specific matters. Due to the objective conditions failing to meet the company'srequirements, after careful consideration and comprehensive evaluation, based on commercial considerations, the Company willnot continue to promote the relevant matters of the "Wan'an Fangda photovoltaic building integration (BIPV) and distributedphotovoltaic power generation project cooperation framework agreement".XIV. Material events of subsidiaries
□ Applicable ? Inapplicable
Chapter VII Changes in Share Capital and ShareholdersI. 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 shares in domestic market | 394,158,755 | 36.71% | 394,158,755 | 36.70% | |||||
| 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
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
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 theCompany's shares held by the actual controller 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 | Released this period | Increased this period | Conditional shares at end of the period | Reason of condition | Date of releasing |
| Xiong Jianming | 2,295,493 | 0 | 1,537,200 | 3,832,693 | Increase of shareholding | 25% of the annual shareholding is released from the sale |
| Total | 2,295,493 | 0 | 1,537,200 | 3,832,693 | -- | -- |
II. Share placing and listing
□ Applicable ? Inapplicable
III. Shareholders and shareholding
In share
| Number of shareholders of common shares at the end of the report period | 57,836 | Number of shareholders of preferred stocks of which voting rights recovered in the report period (if any) | 0 | |||||
| Shareholders holding 5% of the Company's common shares or top-10 shareholders | ||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Number of common shares held at the end of the report period | Change in the reporting period | Conditional common shares | Unconditional common shares | Pledge, marking or freezing | |
| Share status | Quantity | |||||||
| Shenzhen Banglin Technologies Development Co., Ltd. | Domestic non-state legal person | 11.11% | 119,332,846 | - | - | 119,332,846 | ||
| Shengjiu Investment Ltd. | Foreign legal person | 10.11% | 108,579,318 | 717,214 | - | 108,579,318 | ||
| Fang Wei | Domestic natural | 3.03% | 32,543,178 | -365,000 | - | 32,543,178 | ||
| person | ||||||||
| Gong Qing Cheng Shi Li He Investment Management Partnership Enterprise (limited partner) | Domestic non-state legal person | 1.48% | 15,860,609 | - | - | 15,860,609 | ||
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | Foreign legal person | 0.55% | 5,943,512 | -369,171 | - | 5,943,512 | ||
| VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND | Foreign legal person | 0.54% | 5,797,239 | -450,501 | - | 5,797,239 | ||
| Shenwan Hongyuan Securities (Hong Kong) Co., Ltd. | Foreign legal person | 0.51% | 5,508,790 | -272,510 | - | 5,508,790 | ||
| Xiong Jianming | Domestic natural person | 0.48% | 5,110,257 | 2,049,600 | 3,832,693 | 1,277,564 | ||
| Qu Chunlin | Domestic natural person | 0.44% | 4,737,100 | - | - | 4,737,100 | ||
| First Shanghai Securities Limited | Foreign legal person | 0.37% | 3,938,704 | - | - | 3,938,704 | ||
| Strategic investors or general legal persons become the top 10 ordinary shareholders due to the placement of new shares (if any) | None | |||||||
| 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 | None | |||||||
| voting right and waiver of voting right | |||
| Special instructions on the existence of special repurchase account among the top 10 shareholders (if any) | None | ||
| Top 10 shareholders of unconditional common shares | |||
| Name of shareholder | Amount of common 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 | 32,543,178 | RMB common shares | 32,543,178 |
| Gong Qing Cheng Shi Li He Investment Management Partnership Enterprise (limited partner) | 15,860,609 | RMB common shares | 15,860,609 |
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | 5,943,512 | Domestically listed foreign shares | 5,943,512 |
| VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND | 5,797,239 | Domestically listed foreign shares | 5,797,239 |
| Shenwan Hongyuan Securities (Hong Kong) Co., Ltd. | 5,508,790 | Domestically listed foreign shares | 5,508,790 |
| Qu Chunlin | 4,737,100 | RMB common shares | 4,737,100 |
| First Shanghai Securities Limited | 3,938,704 | Domestically listed foreign shares | 3,938,704 |
| Shanghai Silver Leaf Investment Co., Ltd.-Silver Leaf Quantitative Hedging Phase 1 Private Securities Investment Fund | 3,755,500 | RMB common shares | 3,755,500 |
| No action-in-concert or related parties among the top10 unconditional common share shareholders and between | Among the shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu Investment Co., Ltd. are parties action-in-concert. Shenzhen Banglin Technology Development Co., Ltd. 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 of current shares. | ||
| the top10 unconditional common share shareholders and the top10 common share shareholders | |
| Top-10 common share shareholders participating in margin trade (if any) | Shanghai Yinye Investment Co., Ltd. - Yinye quantitative hedge phase 1 private securities investment fund holds 3,755,500 shares of the company through the customer credit transaction guarantee securities account of Xiangcai Securities Co., Ltd. |
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 periodIV. Changes in shareholding of Directors, Supervisors and Senior Management
? Applicable □ Inapplicable
| PRINTED NAME | Position | Job status | Number of shares held at beginning of the period | Increased shares in this period (share) | Decreased shares in this period (share) | Number of shares held at end of the period | Number of restricted shares granted at the beginning of the period | Number of restricted shares granted in this period | Number of restricted shares granted at the end of the period |
| Xiong Jianming | Chairman, president | In office | 3,060,657 | 2,049,600 | 0 | 5,110,257 | 0 | 0 | 0 |
| Total | -- | -- | 3,060,657 | 2,049,600 | 0 | 5,110,257 | 0 | 0 | 0 |
V. Changes in controlling shareholder or actual controllerChanges in the controlling shareholder in the reporting period
□ Applicable ? Inapplicable
No change in the controlling shareholder in the report periodChange in the actual controller in the report period
□ Applicable ? Inapplicable
No change in the actual shareholder in the report period
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 reportWhether the interim report is audited
□ Yes ? No
The financial statements for H1 2014 have not been audited.
II. Financial statementsUnit for statements in notes to financial statements: RMB yuan
1. Consolidated Balance Sheet
Prepared by: China Fangda Group Co., Ltd.
June 30, 2022
In RMB
| Item | June 30, 2022 | January 1, 2022 |
| Current asset: | ||
| Monetary capital | 1,031,315,109.82 | 1,287,563,759.32 |
| Settlement provision | ||
| Outgoing call loan | ||
| Transactional financial assets | 32,133,168.82 | 25,135,241.89 |
| Derivative financial assets | 1,768,884.99 | 1,069,587.62 |
| Notes receivable | 157,195,531.26 | 166,377,880.01 |
| Account receivable | 555,641,568.67 | 556,453,824.20 |
| Receivable financing | 19,031,714.87 | 4,263,500.00 |
| Prepayment | 23,250,383.96 | 23,022,485.03 |
| Insurance receivable | ||
| Reinsurance receivable | ||
| Provisions of Reinsurance contracts receivable | ||
| Other receivables | 179,462,261.72 | 165,093,406.23 |
| Including: interest receivable | ||
| Dividend receivable | ||
| Repurchasing of financial assets | ||
| Inventory | 718,612,534.55 | 733,280,924.98 |
| Contract assets | 2,047,054,849.24 | 1,782,947,673.13 |
| Assets held for sales | ||
| Non-current assets due in 1 year | ||
| Other current assets | 369,087,895.76 | 264,786,506.29 |
| Total current assets | 5,134,553,903.66 | 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 | 55,185,971.99 | 55,218,946.14 |
| Investment in other equity tools | 14,180,652.65 | 14,180,652.65 |
| Other non-current financial assets | 7,504,750.83 | 7,525,408.24 |
| Investment real estate | 5,763,260,414.20 | 5,765,352,393.13 |
| Fixed assets | 681,823,427.57 | 663,414,297.61 |
| Construction in process | 2,839,581.23 | 11,642,444.21 |
| Productive biological assets | ||
| Gas & petrol | ||
| Use right assets | 25,002,936.05 | 31,440,856.54 |
| Intangible assets | 73,780,578.87 | 75,199,712.83 |
| R&D expense | ||
| Goodwill | ||
| Long-term amortizable expenses | 5,509,790.78 | 5,388,770.22 |
| Deferred income tax assets | 222,694,829.06 | 214,123,733.00 |
| Other non-current assets | 425,168,945.51 | 407,856,515.39 |
| Total of non-current assets | 7,276,951,878.74 | 7,251,343,729.96 |
| Total of assets | 12,411,505,782.40 | 12,261,338,518.66 |
| Current liabilities | ||
| Short-term loans | 1,622,891,137.62 | 1,287,474,398.65 |
| Loans from Central Bank | ||
| Call loan received | ||
| Transactional financial liabilities | ||
| Derivative financial liabilities | 1,840,691.89 | 11,871.20 |
| Notes payable | 729,693,080.61 | 849,445,299.09 |
| Account payable | 1,297,629,112.02 | 1,343,123,485.97 |
| Prepayment received | 2,850,390.49 | 1,280,482.93 |
| Contract liabilities | 172,157,564.27 | 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 | 32,750,268.63 | 69,071,013.95 |
| Taxes payable | 64,570,722.30 | 67,280,647.22 |
| Other payables | 114,272,250.22 | 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 | 81,922,494.73 | 78,418,557.76 |
| Other current liabilities | 58,546,129.52 | 48,098,361.77 |
| Total current liabilities | 4,179,123,842.30 | 4,051,294,093.77 |
| Non-current liabilities: | ||
| Insurance contract provision | ||
| Long-term loans | 1,298,500,000.00 | 1,333,500,000.00 |
| Bond payable | ||
| Including: preferred stock | ||
| Perpetual bond | ||
| Lease liabilities | 15,837,405.86 | 19,152,093.31 |
| Long-term payable | 190,640,219.18 | 183,640,219.18 |
| Long-term employees' wage payable | ||
| Anticipated liabilities | 3,052,064.92 | 6,347,809.40 |
| Deferred earning | 9,283,203.02 | 9,566,525.60 |
| Deferred income tax liabilities | 1,063,619,814.66 | 1,066,631,858.80 |
| Other non-current liabilities | ||
| Total of non-current liabilities | 2,580,932,707.64 | 2,618,838,506.29 |
| Total liabilities | 6,760,056,549.94 | 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 | 34,875,541.51 | 35,325,871.78 |
| Special reserves | ||
| Surplus reserve | 79,324,940.43 | 79,324,940.43 |
| Common risk provisions | ||
| Retained profit | 4,383,046,821.75 | 4,324,055,259.33 |
| Total of owner's equity belong to the parent company | 5,582,581,119.09 | 5,524,039,886.94 |
| Minor shareholders' equity | 68,868,113.37 | 67,166,031.66 |
| Total of owners' equity | 5,651,449,232.46 | 5,591,205,918.60 |
| Total of liabilities and owner's interest | 12,411,505,782.40 | 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 | June 30, 2022 | January 1, 2022 |
| Current asset: | ||
| Monetary capital | 162,952,516.84 | 111,848,536.84 |
| Transactional financial assets | ||
| Derivative financial assets | ||
| Notes receivable |
| Account receivable | 790,774.65 | 585,936.30 |
| Receivable financing | ||
| Prepayment | 101,866.62 | 212,807.30 |
| Other receivables | 1,821,626,998.78 | 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 | 999,205.42 | 1,460,846.55 |
| Total current assets | 1,986,471,362.31 | 1,390,839,792.94 |
| Non-current assets: | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term receivables | ||
| Long-term share equity investment | 1,196,831,253.00 | 1,196,831,253.00 |
| Investment in other equity tools | 14,180,652.65 | 14,180,652.65 |
| Other non-current financial assets | 30,000,001.00 | 30,000,001.00 |
| Investment real estate | 329,471,982.00 | 329,471,982.00 |
| Fixed assets | 69,846,546.46 | 71,830,252.61 |
| Construction in process | ||
| Productive biological assets | ||
| Gas & petrol | ||
| Use right assets | 13,910,463.05 | 17,224,771.47 |
| Intangible assets | 1,136,656.32 | 1,219,737.85 |
| R&D expense | ||
| Goodwill | ||
| Long-term amortizable expenses | 89,888.18 | 218,563.44 |
| Deferred income tax assets | 28,793,169.88 | 27,079,997.63 |
| Other non-current assets | ||
| Total of non-current assets | 1,684,260,612.54 | 1,688,057,211.65 |
| Total of assets | 3,670,731,974.85 | 3,078,897,004.59 |
| Current liabilities | ||
| Short-term loans | 300,052,500.00 | 300,351,666.67 |
| Transactional financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Account payable | 1,115,393.82 | 606,941.85 |
| Prepayment received | 832,154.41 | 858,019.63 |
| Contract liabilities | ||
| Employees' wage payable | 1,536,881.97 | 3,909,857.23 |
| Taxes payable | 861,765.79 | 3,447,040.12 |
| Other payables | 892,974,754.71 | 233,531,740.37 |
| Including: interest payable | ||
| Dividend payable | ||
| Liabilities held for sales | ||
| Non-current liabilities due in 1 year | 3,532,955.72 | 4,264,397.66 |
| Other current liabilities | ||
| Total current liabilities | 1,200,906,406.42 | 546,969,663.53 |
| Non-current liabilities: | ||
| Long-term loans | ||
| Bond payable | ||
| Including: preferred stock | ||
| Perpetual bond | ||
| Lease liabilities | 11,228,293.71 | 13,560,947.50 |
| Long-term payable | ||
| Long-term employees' wage payable | ||
| Anticipated liabilities | ||
| Deferred earning | ||
| Deferred income tax liabilities | 74,263,872.99 | 74,447,416.01 |
| Other non-current liabilities | ||
| Total of non-current liabilities | 85,492,166.70 | 88,008,363.51 |
| Total liabilities | 1,286,398,573.12 | 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 | -520,786.11 | -520,786.11 |
| Special reserves | ||
| Surplus reserve | 79,324,940.43 | 79,324,940.43 |
| Retained profit | 1,231,294,184.89 | 1,290,879,760.71 |
| Total of owners' equity | 2,384,333,401.73 | 2,443,918,977.55 |
| Total of liabilities and owner's interest | 3,670,731,974.85 | 3,078,897,004.59 |
3. Consolidated Income Statement
In RMB
| Item | H1 2022 | H1 2021 |
| 1. Total revenue | 1,613,063,315.30 | 1,568,778,834.98 |
| Incl. Business income | 1,613,063,315.30 | 1,568,778,834.98 |
| Interest income | ||
| Insurance fee earned | ||
| Fee and commission received | ||
| 2. Total business cost | 1,492,648,248.55 | 1,464,915,772.96 |
| Incl. Business cost | 1,259,515,842.60 | 1,208,641,803.18 |
| Interest expense | ||
| Fee and commission paid | ||
| Insurance discharge payment | ||
| Net claim amount paid | ||
| Net insurance policy responsibility reserves provided | ||
| Insurance policy dividend paid | ||
| Reinsurance expenses | ||
| Taxes and surcharges | 23,203,954.56 | 35,853,693.88 |
| Sales expense | 23,296,105.78 | 25,434,914.81 |
| Administrative expense | 74,193,251.57 | 69,502,453.93 |
| R&D cost | 72,809,311.17 | 78,645,594.86 |
| Financial expenses | 39,629,782.88 | 46,837,312.30 |
| Including: interest cost | 50,244,714.46 | 43,637,100.05 |
| Interest income | 19,918,179.96 | 6,976,161.44 |
| Add: other gains | 6,768,907.75 | 6,607,058.06 |
| Investment gains (“-” for loss) | 4,595,678.43 | -532,743.54 |
| Incl. Investment gains from affiliates and joint ventures | -32,974.15 | -452,893.65 |
| Financial assets derecognised as a result of amortized cost | -1,859,057.85 | -3,032,899.72 |
| Exchange gains ("-" for loss) | ||
| Net open hedge gains (“-” for loss) | ||
| Gains from change of fair value (“-“ for loss) | 1,180,840.01 | 172,829.74 |
| Credit impairment ("-" for loss) | 25,016,298.34 | 19,853,416.06 |
| Investment impairment loss ("-" for loss) | -27,659,612.75 | 3,466,913.89 |
| Investment gains ("-" for loss) | -815,581.50 | -2,027,304.03 |
| 3. Operational profit ("-" for loss) | 129,501,597.03 | 131,403,232.20 |
| Plus: non-operational income | 446,386.82 | 1,201,106.46 |
| Less: non-operational expenditure | 2,578,001.31 | 3,480,374.51 |
| 4. Gross profit ("-" for loss) | 127,369,982.54 | 129,123,964.15 |
| Less: Income tax expenses | 13,005,121.74 | 13,936,493.66 |
| 5. Net profit ("-" for net loss) | 114,364,860.80 | 115,187,470.49 |
| (1) By operating consistency | ||
| 1. Net profit from continuous operation ("-" for net loss) | 114,364,860.80 | 115,187,470.49 |
| 2. Net profit from discontinuous operation ("-" for net loss) | ||
| (2) By ownership | ||
| 1. Net profit attributable to the owners of parent company | 112,685,273.77 | 111,488,701.33 |
| 2. Minor shareholders' equity | 1,679,587.03 | 3,698,769.16 |
| 6. After-tax net amount of other misc. incomes | -427,835.59 | -24,854.15 |
| After-tax net amount of other misc. incomes attributed to parent's owner | -450,330.27 | -1,460.74 |
| (1) Other misc. incomes that cannot be re-classified into gain and loss | -229,678.59 | |
| 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 | -229,678.59 | |
| 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 | -450,330.27 | 228,217.85 |
| 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 | -960,094.83 | -785,690.88 |
| 6. Translation difference of foreign exchange statement | 509,764.56 | -495,193.96 |
| 7. Others | 1,509,102.69 | |
| After-tax net of other misc. income attributed to minority shareholders | 22,494.68 | -23,393.41 |
| 7. Total of misc. incomes | 113,937,025.21 | 115,162,616.34 |
| Total of misc. incomes attributable to the owners of the parent company | 112,234,943.50 | 111,487,240.59 |
| Total misc gains attributable to the minor shareholders | 1,702,081.71 | 3,675,375.75 |
| 8. Earnings per share: | ||
| (1) Basic earnings per share | 0.10 | 0.10 |
| (2) Diluted earnings per share | 0.10 | 0.10 |
Net profit contributed by entities merged under common control in the report period was RMB0.00, net profit realized by partiesmerged during the previous period is RMB0.00.Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua
4. Income Statement of the Parent Company
In RMB
| Item | H1 2022 | H1 2021 |
| 1. Turnover | 14,705,232.50 | 12,068,999.58 |
| Less: Operation cost | 418,824.01 | 89,904.13 |
| Taxes and surcharges | 655,596.71 | 664,469.85 |
| Sales expense |
| Administrative expense | 15,050,027.61 | 13,509,831.81 |
| R&D cost | ||
| Financial expenses | 6,762,805.90 | 7,575,722.85 |
| Including: interest cost | 5,419,166.67 | 7,449,236.11 |
| Interest income | 216,667.03 | 407,702.78 |
| Add: other gains | 72,308.39 | 85,100.49 |
| Investment gains (“-” for loss) | 431,992.15 | 33,976,138.71 |
| Incl. Investment gains from affiliates and joint ventures | ||
| Financial assets derecognised as a result of amortized cost ("-" for loss) | ||
| Net open hedge gains (“-” for loss) | ||
| Gains from change of fair value (“-“ for loss) | ||
| Credit impairment ("-" for loss) | -12,016.02 | -3,239.44 |
| Investment impairment loss ("-" for loss) | ||
| Investment gains ("-" for loss) | -26,723.69 | -460.17 |
| 2. Operational profit (“-” for loss) | -7,716,460.90 | 24,286,610.53 |
| Plus: non-operational income | 0.84 | 32,837.61 |
| Less: non-operational expenditure | 47,636.27 | 101,429.05 |
| 3. Gross profit ("-" for loss) | -7,764,096.33 | 24,218,019.09 |
| Less: Income tax expenses | -1,872,231.86 | -2,200,178.64 |
| 4. Net profit (“-” for net loss) | -5,891,864.47 | 26,418,197.73 |
| (1) Net profit from continuous operation ("-" for net loss) | -5,891,864.47 | 26,418,197.73 |
| (2) Net profit from discontinuous operation ("-" for net loss) | ||
| 5. After-tax net amount of other misc. incomes | 1,509,102.69 | |
| (1) Other misc. incomes that cannot be re-classified into gain and loss | ||
| 1. Re-measure the change in the defined benefit plan | ||
| 2. Other comprehensive income that cannot be transferred to profit or loss under the equity method | ||
| 3. Fair value change of investment in other equity tools | ||
| 4. Fair value change of the Company's credit risk | ||
| 5. Others | ||
| (2) Other misc. incomes that will be re-classified into gain and loss | 1,509,102.69 | |
| 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 | 1,509,102.69 | |
| 6. Total of misc. incomes | -5,891,864.47 | 27,927,300.42 |
| 7. Earnings per share: | ||
| (1) Basic earnings per share | ||
| (2) Diluted earnings per share |
5. Consolidated Cash Flow Statement
In RMB
| Item | H1 2022 | H1 2021 |
| 1. Net cash flow from business operations: | ||
| Cash received from sales of products and providing of services | 1,404,641,263.99 | 1,573,340,053.10 |
| 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 | 13,589,221.42 | 16,480,293.15 |
| Other cash received from business operation | 101,615,328.20 | 91,747,818.37 |
| Sub-total of cash inflow from business operations | 1,519,845,813.61 | 1,681,568,164.62 |
| Cash paid for purchasing products and services | 1,218,828,059.03 | 1,361,468,797.85 |
| 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 | 224,849,803.47 | 196,896,028.86 |
| Taxes paid | 88,742,682.58 | 431,724,633.10 |
| Other cash paid for business activities | 294,006,061.57 | 192,403,249.81 |
| Sub-total of cash outflow from business operations | 1,826,426,606.65 | 2,182,492,709.62 |
| Cash flow generated by business operations, net | -306,580,793.04 | -500,924,545.00 |
| 2. Cash flow generated by investment: | ||
| Cash received from investment recovery | 2,282,234,066.40 | 2,224,594,891.08 |
| Cash received as investment profit | 2,513,790.26 | 2,754,435.58 |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 2,041,120.00 | 332,717.49 |
| Net cash received from disposal of subsidiaries or other operational units | ||
| Other investment-related cash received | ||
| Sub-total of cash inflow generated from investment | 2,286,788,976.66 | 2,227,682,044.15 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 19,887,603.68 | 54,321,772.94 |
| Cash paid as investment | 2,389,975,144.00 | 2,167,460,000.00 |
| Net increase of loan against pledge | ||
| Net cash paid for acquiring subsidiaries and other operational units | 125,388,100.00 | |
| Other cash paid for investment | 1,323,355.15 | |
| Subtotal of cash outflows | 2,409,862,747.68 | 2,348,493,228.09 |
| Cash flow generated by investment activities, net | -123,073,771.02 | -120,811,183.94 |
| 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 | 1,168,411,688.20 | 1,220,000,000.00 |
| Other cash received from financing activities | ||
| Subtotal of cash inflow from financing activities | 1,168,411,688.20 | 1,220,000,000.00 |
| Cash paid to repay debts | 328,500,000.00 | 445,249,952.00 |
| Cash paid as dividend, profit, or interests | 102,751,331.27 | 64,069,929.56 |
| Incl. Dividend and profit paid by subsidiaries to minority shareholders | 4,560,100.00 | |
| Other cash paid for financing activities | 609,596,798.70 | 529,360,479.34 |
| Subtotal of cash outflow from financing activities | 1,040,848,129.97 | 1,038,680,360.90 |
| Net cash flow generated by financing activities | 127,563,558.23 | 181,319,639.10 |
| 4. Influence of exchange rate changes on | 3,757,947.63 | -671,353.77 |
| cash and cash equivalents | ||
| 5. Net increase in cash and cash equivalents | -298,333,058.20 | -441,087,443.61 |
| Plus: Balance of cash and cash equivalents at the beginning of term | 892,251,071.59 | 1,028,386,529.73 |
| 6. Balance of cash and cash equivalents at the end of the period | 593,918,013.39 | 587,299,086.12 |
6. Cash Flow Statement of the Parent Company
In RMB
| Item | H1 2022 | H1 2021 |
| 1. Net cash flow from business operations: | ||
| Cash received from sales of products and providing of services | 10,460,521.63 | 10,393,331.14 |
| Tax refunded | ||
| Other cash received from business operation | 1,764,596,018.97 | 2,246,619,631.82 |
| Sub-total of cash inflow from business operations | 1,775,056,540.60 | 2,257,012,962.96 |
| Cash paid for purchasing products and services | 981,699.47 | 342,534.67 |
| Cash paid to and for the staff | 11,795,461.40 | 10,905,880.26 |
| Taxes paid | 3,942,572.28 | 3,555,895.62 |
| Other cash paid for business activities | 1,647,625,265.89 | 2,367,856,652.84 |
| Sub-total of cash outflow from business operations | 1,664,344,999.04 | 2,382,660,963.39 |
| Cash flow generated by business operations, net | 110,711,541.56 | -125,648,000.43 |
| 2. Cash flow generated by investment: | ||
| Cash received from investment recovery | 845,000,000.00 | 382,800,000.00 |
| Cash received as investment profit | 431,992.15 | 33,976,138.71 |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 675,000.00 | |
| Net cash received from disposal of subsidiaries or other operational units | ||
| Other investment-related cash received | ||
| Sub-total of cash inflow generated from investment | 846,106,992.15 | 416,776,138.71 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 113,230.00 | 239,020.66 |
| Cash paid as investment | 845,000,000.00 | 382,800,000.00 |
| Net cash paid for acquiring subsidiaries and other operational units | ||
| Other cash paid for investment | ||
| Subtotal of cash outflows | 845,113,230.00 | 383,039,020.66 |
| Cash flow generated by investment activities, net | 993,762.15 | 33,737,118.05 |
| 3. Cash flow generated by financing activities: | ||
| Cash received from investment | ||
| Cash received from borrowed loans | 300,000,000.00 | 300,000,000.00 |
| Other cash received from financing activities | ||
| Subtotal of cash inflow from financing activities | 300,000,000.00 | 300,000,000.00 |
| Cash paid to repay debts | 300,000,000.00 | 300,000,000.00 |
| Cash paid as dividend, profit, or interests | 60,578,669.24 | 8,748,888.89 |
| Other cash paid for financing activities | ||
| Subtotal of cash outflow from financing activities | 360,578,669.24 | 308,748,888.89 |
| Net cash flow generated by financing activities | -60,578,669.24 | -8,748,888.89 |
| 4. Influence of exchange rate changes on cash and cash equivalents | -22,654.47 | |
| 5. Net increase in cash and cash equivalents | 51,103,980.00 | -100,659,771.27 |
| 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 | 162,702,516.84 | 103,919,224.51 |
7. Statement of Change in Owners' Equity (Consolidated)
Amount of the Current Term
In RMB
| Item | H1 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 | |||||||
| Plus: Changes in accounting policies | |||||||||||||||
| Correction of previous errors | |||||||||||||||
| Consolidation of entities under common control | |||||||||||||||
| Others | |||||||||||||||
| 2. Balance at the beginning of current year | 1,073,874,227.00 | 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) | -450,330.27 | 58,991,562.42 | 58,541,232.15 | 1,702,081.71 | 60,243,313.86 | ||||||||||
| (1) Total of misc. incomes | -450,330.27 | 112,685,273.77 | 112,234,943.50 | 1,702,081.71 | 113,937,025.21 | ||||||||||
| (2) Investment or decreasing of capital by owners | |||||||||||||||
| 1. Common shares invested by owners | |||||||||||||||
| 2. Capital contributed by other equity instrument holders | |||||||||||||||
| 3. Amount of shares paid and accounted as owners' equity | |||||||||||||||
| 4. Others | |||||||||||||||
| (3) Profit allotment | -53,693,711.35 | -53,693,711.35 | -53,693,711.35 | ||||||||||||
| 1. Provision of surplus reserves | |||||||||||||||
| 2. Common risk provision | |||||||||||||||
| 3. Distribution to owners (or shareholders) | -53,693,711.35 | -53,693,711.35 | -53,693,711.35 |
| 4. Others | |||||||||||||||
| (4) Internal carry-over of owners' equity | |||||||||||||||
| 1. Capitalizing of capital reserves (or share capital) | |||||||||||||||
| 2. Capitalizing of surplus reserves (or share capital) | |||||||||||||||
| 3. Surplus reserves used to cover losses | |||||||||||||||
| 4. Retained gain transferred due to change in set benefit program | |||||||||||||||
| 5. Other miscellaneous income | |||||||||||||||
| 6. Others | |||||||||||||||
| (5) Special reserves | |||||||||||||||
| 1. Provided this year | |||||||||||||||
| 2. Used this period | |||||||||||||||
| (6) Others | |||||||||||||||
| 4. Balance at the end of this period | 1,073,874,227.00 | 11,459,588.40 | 34,875,541.51 | 79,324,940.43 | 4,383,046,821.75 | 5,582,581,119.09 | 68,868,113.37 | 5,651,449,232.46 |
Amount of Last Year
In RMB
| Item | H1 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 | Special reserves | Surplus reserve | Common risk provisio | Retained profit | Others | Subtotal | |||||
| Preferred share | Perpetual bond | Others | |||||||||||||
| income | ns | ||||||||||||||
| 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 | ||||||
| Plus: Changes in accounting policies | |||||||||||||||
| Correction of previous errors | |||||||||||||||
| Consolidation of entities under common control | 9,000,000.00 | 2,521,701.04 | 11,521,701.04 | 1,280,189.00 | 12,801,890.04 | ||||||||||
| Others | |||||||||||||||
| 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 | 4,217,527,242.56 | 5,392,378,856.43 | 67,819,025.09 | 5,460,197,881.52 | ||||||
| 3. Change amount in the current period (“-“ for decrease) | -14,404,724.00 | 101,751,783.91 | -42,748,530.12 | -1,460.74 | -106,783,436.96 | 87,380,887.75 | 110,691,580.08 | 27,559,478.81 | 138,251,058.89 | ||||||
| (1) Total of misc. incomes | -1,460.74 | 111,488,701.33 | 111,487,240.59 | 3,675,375.75 | 115,162,616.34 | ||||||||||
| (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 | ||||||||||||
| 2. Capital contributed by other equity instrument holders | |||||||||||||||
| 3. Amount of shares paid |
| and accounted as owners' equity | |||||||||||||||
| 4. Others | |||||||||||||||
| (3) Profit allotment | |||||||||||||||
| 1. Provision of surplus reserves | |||||||||||||||
| 2. Common risk provision | |||||||||||||||
| 3. Distribution to owners (or shareholders) | |||||||||||||||
| 4. Others | |||||||||||||||
| (4) Internal carry-over of owners' equity | |||||||||||||||
| 1. Capitalizing of capital reserves (or share capital) | |||||||||||||||
| 2. Capitalizing of surplus reserves (or share capital) | |||||||||||||||
| 3. Surplus reserves used to cover losses | |||||||||||||||
| 4. Retained gain transferred due to change in set benefit program | |||||||||||||||
| 5. Other miscellaneous income | |||||||||||||||
| 6. Others | |||||||||||||||
| (5) Special reserves | |||||||||||||||
| 1. Provided this year | |||||||||||||||
| 2. Used this |
| period | |||||||||||||||
| (6) Others | 101,751,783.91 | -78,439,630.84 | -24,107,813.58 | -795,660.51 | 23,884,103.06 | 23,088,442.55 | |||||||||
| 4. Balance at the end of this period | 1,073,874,227.00 | 122,211,372.31 | 2,076,706.89 | 4,304,908,130.31 | 5,503,070,436.51 | 95,378,503.90 | 5,598,448,940.41 |
8. Statement of Change in Owners' Equity (Parent Company)
Amount of the Current Term
In RMB
| Item | H1 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. Balance at the end of last 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 | ||||||
| Plus: Changes in accounting policies | ||||||||||||
| Correction of previous errors | ||||||||||||
| Others | ||||||||||||
| 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) | -59,585,575.82 | -59,585,575.82 | ||||||||||
| (1) Total of misc. incomes | -5,891,864.47 | -5,891,864.47 | ||||||||||
| (2) Investment or decreasing of capital by | ||||||||||||
| owners | ||||||||||||
| 1. Common shares invested by owners | ||||||||||||
| 2. Capital contributed by other equity instrument holders | ||||||||||||
| 3. Amount of shares paid and accounted as owners' equity | ||||||||||||
| 4. Others | ||||||||||||
| (3) Profit allotment | -53,693,711.35 | -53,693,711.35 | ||||||||||
| 1. Provision of surplus reserves | ||||||||||||
| 2. Distribution to owners (or shareholders) | -53,693,711.35 | -53,693,711.35 | ||||||||||
| 3. Others | ||||||||||||
| (4) Internal carry-over of owners' equity | ||||||||||||
| 1. Capitalizing of capital reserves (or share capital) | ||||||||||||
| 2. Capitalizing of surplus reserves (or share capital) | ||||||||||||
| 3. Surplus reserves used to cover losses | ||||||||||||
| 4. Retained gain transferred due to change in set |
| benefit program | ||||||||||||
| 5. Other miscellaneous income | ||||||||||||
| 6. Others | ||||||||||||
| (5) Special reserves | ||||||||||||
| 1. Provided this year | ||||||||||||
| 2. Used this period | ||||||||||||
| (6) Others | ||||||||||||
| 4. Balance at the end of this period | 1,073,874,227.00 | 360,835.52 | -520,786.11 | 79,324,940.43 | 1,231,294,184.89 | 2,384,333,401.73 |
Amount of Last Year
In RMB
| Item | H1 2021 | |||||||||||
| 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. 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 | |||||
| Plus: Changes in accounting policies | ||||||||||||
| Correction of previous errors | ||||||||||||
| Others | ||||||||||||
| 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 | 1,509,102.69 | -28,343,806.12 | 26,418,197.73 | 27,927,300.42 | ||||||
| (1) Total of misc. | 1,509,102.69 | 26,418,197.73 | 27,927,300.42 | |||||||||
| incomes | ||||||||||||
| (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 | |||||||||
| 2. Capital contributed by other equity instrument holders | ||||||||||||
| 3. Amount of shares paid and accounted as owners' equity | ||||||||||||
| 4. Others | ||||||||||||
| (3) Profit allotment | ||||||||||||
| 1. Provision of surplus reserves | ||||||||||||
| 2. Distribution to owners (or shareholders) | ||||||||||||
| 3. Others | ||||||||||||
| (4) Internal carry-over of owners' equity | ||||||||||||
| 1. Capitalizing of capital reserves (or share capital) | ||||||||||||
| 2. Capitalizing of surplus reserves (or share capital) | ||||||||||||
| 3. Surplus reserves used to cover losses | ||||||||||||
| 4. Retained gain |
| transferred due to change in set benefit program | ||||||||||||
| 5. Other miscellaneous income | ||||||||||||
| 6. Others | ||||||||||||
| (5) Special reserves | ||||||||||||
| 1. Provided this year | ||||||||||||
| 2. Used this period | ||||||||||||
| (6) Others | ||||||||||||
| 4. Balance at the end of this period | 1,073,874,227.00 | 360,835.52 | 1,137,972.98 | 78,439,630.84 | 1,309,330,172.11 | 2,463,142,838.45 |
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, Guangdongand was approved by the Government of Shenzhen with Document 深府办函 (1995) 194号, and was founded, on the basis ofShenzhen Fangda Construction Material Co., Ltd., by way of share issuing in October 1995. The unified social credit code is:
91440300192448589C; registered address: Fangda Technology Building, Keji South 12th Road, South District, High-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 2016 profit distribution plan approved by the 2016 general meeting ofshareholders, based on the total share capital of 789,094,836 shares as of December 31, 2016, the Company transferred 5 sharesfor every 10 shares to all shareholders with the capital reserve. The registered capital at the end of 2017 was RMB1,183,642,254.00. The Company repurchased and canceled 28,160,568.00 B shares in August 2018, 32,097,497.00 B shares inJanuary 2019, 35,105,238.00 B shares in May 2020, 14404724.00 B shares in April 2021 and cancelled in April 2021. Theexisting registered capital is RMB1,073,874,227.00 yuan.
The Company has established a corporate governance structure that comprises shareholders' meeting, board of directors andsupervisory committee. Currently, the Company sets up the President Office, Administrative Department, HR Department,Enterprise Management Department, Financial Department, Audit and Supervisory Department, Securities Department,Technology Innovation Department and IT Department and has established subsidiaries including Fangda Jianke, Fangda Zhiyuan,Fangda Jiangxi New Material, Fangda Property and Fangda New Energy.
The business nature and main business operations of the Company and subsidiaries include (1) production and sales of curtainwall materials, design, production and installation of construction curtain walls; (2) assembly and production of subway screen
doors; (3) development and operation of real estate projects on land, of which rights have been obtained lawfully; (4) R&D,installation and sales of PV devices, design and installation of PV power plants.Date of financial statement approval: This financial statement is approved by the Board of Directors of the Company onAugust 26, 2022.
2. Consolidation Scope and Change
The total number of subsidiaries included in the consolidation scope of the Company in this period is 33, and there are nochange and subsidiaries in consolidation scope in this period. Please refer to "Section X, VIII. Changes in the ConsolidationScope" and "Section X, IX. Interests in Other Entities" for details.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 Estimates
Specific accounting policy and estimate prompt:
The 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 the maineconomic environment in which they operate.
5. Accounting treatment of the entities under common and different control
(1) Consolidation of entities under common control
The assets and liabilities acquired by the Company in a business combination are measured at the book value of the combinedparty in the consolidated financial statements of the ultimate controlling party on the date of combination. Among them, if theaccounting policy adopted by the merger party is different from that adopted by the Company before the merger, the accountingpolicy is unified based on the principle of importance, that is, the book value of the assets and liabilities of the merger party isadjusted according to the accounting policy of the Company. If there is a difference between the book value of the net assetsacquired by the Company in the business combination and the book value of the consideration paid, first adjust the balance of thecapital reserve (capital premium or equity premium), the balance of the capital reserve (capital premium or equity premium) If it isinsufficient to offset, the surplus reserve and undistributed profits will be offset in sequence.
For the accounting treatment method of business combination under the same control through step-by-step transactions, seeChapter X, V. important accounting policies and accounting estimates. 6. Preparation method of consolidated financial statements
(5) accounting treatment of special transactions.
(2) Consolidation of entities under different control
All identifiable assets and liabilities acquired by the Company during the merger shall be measured at its fair value on 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.
For the accounting treatment method of business combination not under the same control through step-by-step transactions,see Chapter X, V. important accounting policies and accounting estimates. 6. Preparation method of consolidated financialstatements (5) accounting treatment of special transactions.
(3) Treatment of related transaction fee in enterprise merger
Agency expenses and other administrative expenses such as auditing, legal consulting, or appraisal services occurred relatingto the 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 subject
controlled 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, reflectsthe overall financial status, operating results and cash flow of the enterprise group according to the confirmation, measurement andpresentation requirements of the relevant enterprise accounting standards, and the unified accounting policy and accounting period.
① Merge the assets, liabilities, owner's rights and interests, income, expenses and cash flow of parent company 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 combination fromthe beginning of the current period to the end of the reporting period are included in the consolidated cash flow statement, and therelated 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 combination fromthe beginning of the current period to the end of the reporting period are included in the consolidated cash flow statement, and therelated 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 the endof 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 subsidiary tothe 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 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.
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 andother 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 according tothe 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 control
The parent company partially disposes of the long-term equity investment in the subsidiary company without losing control.In the consolidated financial statements, the disposal price corresponds to the disposal of the long-term equity investment. 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 disposition
If 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 each transactionbefore the loss of control of the subsidiary, the book value of the long-term equity investment corresponding to each disposal ofequity is carried forward, the price received and the disposal The difference between the book value of the long-term equityinvestment 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 disposes ofthe 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, usuallymultiple transactions are treated as a "package deal":
(a) These transactions were concluded at the same time or in consideration of mutual influence.
(b) These transactions can only achieve the business result as a whole;
(c) The effectiveness of one transaction depends the occurance of at least another transaction;
(d) A single transaction is not economic and is economic when considered together with other transactions.
(5) Proportion of minority shareholders in factor companies who increase capital and dilute ownership of parent companies
Proportion of Others （ minority shareholders in factor companies who increase capital , dilute Subsidiaries of 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 investments witha 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 or theapproximate exchange rate of the spot exchange rate.
③ The foreign currency cash flow and the foreign subsidiary's cash flow are converted using the immediate exchange rate orthe 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 or equityinstruments.
(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 the
original 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 business modelof 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 areincluded 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 to thecontract holder who suffered a loss when a specific debtor is unable to repay the debt in accordance with the original or modifieddebt instrument terms. Financial guarantee contract liabilities are subsequently measured based on the higher of the loss reserveamount determined in accordance with the principle of impairment of financial instruments and the initial recognition amount afterdeducting 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:
a. If the Company cannot unconditionally avoid delivering cash or other financial assets to fulfill a contractual obligation, thecontractual obligation meets the definition of financial liability. While some financial instruments do not explicitly contain termsand conditions for the delivery of cash or other financial assets, they may indirectly form contractual obligations through otherterms and conditions.
B. 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, the hybridinstrument as a whole applies the relevant provisions of the financial asset classification. If the main contract is not a financialasset, and the hybrid instrument is not measured at fair value and its changes are included in the current profit and loss foraccounting, the embedded derivative does not have a close relationship with the main contract in terms of economic characteristicsand risks, and it is If the instruments with the same conditions and exist separately meet the definition of derivative instruments,the embedded derivative instruments are separated from the mixed instruments and treated as separate derivative financialinstruments. If the fair value of the embedded derivative on the acquisition date or the subsequent balance sheet date cannot bemeasured separately, the hybrid instrument as a whole is designated as a financial asset or financial liability measured at fair valueand 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 life ofthe financial instrument.
Expected credit losses in the next 12 months are expected to result from possible defaults in financial instruments within 12months after the balance sheet date (or estimated duration of financial instruments if the expected duration is less than 12 months)Credit losses are part of the expected lifetime credit loss.
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 Bill
Notes Receivable Combination 2 Bank Acceptance Bill
For 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 business
Accounts receivable combination 2 Real estate receivable business
Accounts receivable combination 3 Others receivable business
Other receivable portfolio 4 Receivables from related parties within the scope of consolidation
For the accounts receivable divided into a combination, the Company refers to the historical credit loss experience, combinedwith the current situation and the forecast of the future economic situation, compiles the account receivable age and the wholeexpected 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 consolidationOther 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 in theshort 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 relative
probability 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 has increasedsignificantly. Unless the Company does not have to pay excessive costs or efforts to obtain reasonable and warranted information,it proves that although it has exceeded the time limit of 30 days agreed upon in the Contract, credit risks have not increasedsignificantly 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 active
market 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, thebook balance of the financial assets will be directly reduced. Such write-off constitute the derecognition of related financial assets.This usually occurs when the Company determines that the debtor has no assets or sources of income that generate sufficient cashflow 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 have neithertransferred nor retained almost all the risks and rewards in the ownership of financial assets, but have given up control of thefinancial 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 meets thecondition 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 fair valueof the transfer in respect of the termination recognized portion of the amount previously charged directly to the other consolidatedproceeds (the financial assets involved in the transfer are those classified in accordance with Article 18 of Enterprise Accounting
Standard No. 22 - Financial Instruments Recognition and Measurement as measured by the fair value and whose change is chargedto 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 fair valueof 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 assets
Where almost all risks and remuneration in relation to ownership of the transferred financial assets are retained, the whole ofthe 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 same time.
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 (1) fair valuemeasurement.
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.
12. Receivable financing
See Chapter X, V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.
13. Other receivables
See Chapter X, V, Important Accounting Policies and Accounting Estimates 9. Financial Tools.
14. Inventories
(1) Classification of inventories
Inventory refers to the finished products or commodities held by the Company for sale in daily activities, the products 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 real estate business inventory mainly includes inventory materials, products under development, completed developmentproducts, and development products intended to be sold but temporarily rented out. Inventory is measured at the actual costs whenthe fixed assets are obtained The actual costs of development products include land transfer payment, infrastructure and facilitycosts, installation engineering costs, borrows before completion of the development and other costs during the developmentprocess. The special maintenance funds collected in the first period are included in the development overheads. The actual costs ofthe development product is priced using the separate pricing method.
(3) Inventory system
The Company inventory adopts the perpetual inventory system, counting at least once a year, the inventory profit and 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 inventories witha lower unit price, they are accrued by inventory type.
④ If the factors affecting the previous write-down of inventory value have disappeared on the balance sheet date, the amountof the write-down will be restored and transferred back within the amount of inventory depreciation reserve that has been accrued,and the amount returned will be included in the current profit and loss.
(5) Methods of amortization of swing materials
Low-value consumables are amortized on on-off amortization basis at using.
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:
① The cost is directly related to a current or expected contract, including direct labor, direct materials, manufacturingexpenses (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 to theassets; however, if the amortization period of the contract acquisition cost is less than one year, the Company shall include it in thecurrent 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 the relevantactivities of the arrangement must be agreed upon by the participants who share control. In determining whether there is commoncontrol, 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 thedate 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 on thefair 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 included inthe 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 equityWhen 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 periodadopted 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, thesum of the fair value of the original equity and increased investment on the conversion date is the initial investment cost under theequity method. If the equity investment originally held is classified as other equity instrument investment, the difference betweenthe fair value and the book value, as well as the accumulated gains or losses originally included in other comprehensive income,shall be transferred out of other comprehensive income and included in retained income in the current period when the equitymethod 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 estates 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 the fairvalue 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 is defined as the tangible assets which are held for the purpose of producing goods, providing services, lease orfor operation & management, and have more than one accounting year of service life. Fixed assets are recognized at the actual costof acquisition when the following conditions are met: (1) The economic benefits associated with the fixed assets are likely to flowinto the enterprise.
Fixed assets are recognized at the actual cost of acquisition when the following conditions are met: (1) The economic benefitsassociated 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 (year) | Residual rate % | Annual depreciation rate % |
| Houses & buildings | Average age | 20-50 | 10.00 | 1.80-4.50 |
| Mechanical equipment | Average age | 10.00 | 10.00 | 9.00 |
| Transportation facilities | Average age | 5.00 | 10.00 | 18.00 |
| Electronics and other devices | Average age | 5.00 | 10.00 | 18.00 |
| PV power plants | Average age | 20.00 | 5.00 | 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
Construction in progress is accounted for by project classification.
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. Estimatedliabilities 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 assets
Recorded at the actual cost of acquisition.
Amortization of intangible assets
① Useful life of intangible assets with limited useful life
| Item | Estimated useful 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 ofintangible 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.
(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 assets constructionin progress, intangible assets and goodwill (except for the inventories, investment real estate measured by the fair value mode,deferred income tax assets and financial assets). The method is determined as follows:
The Company judges whether there is a sign of impairment to assets on the balance sheet day. If such sign exists, 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;
② When the enterprise recognizes the costs or expenses related to the reorganization involving the payment of resignationbenefits.
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. If theimplicit 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
Accounting policies used in revenue recognition and measurement
(1) General principles
Income is the total inflow of economic benefits formed in the daily activities of the Company, which will lead to the increaseof 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 notexceeding 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 by theCompany'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 point whenthe 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 pay forthe 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 obligationsAccording 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 payableIf 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 change
When the construction contract between the Company and the customer is changed:
① If the contract change increases the clearly distinguishable construction service and contract price, and the new 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 sales contract between the Company and customers includes the performance obligation of transferring curtain wallmaterials, electric energy, etc., which belongs to the performance obligation at a certain time point.
Revenue from domestic sales of products is recognized at the time when the customer obtains the right of control of the goodson the basis of comprehensive consideration of the following factors: the Ccompany has delivered the products to the customeraccording to the contract, the customer has accepted the goods, the payment for goods has been recovered or the receipt has beenobtained, and the relevant economic benefits are likely to flow in, the main risks and rewards of the ownership of the goods havebeen transferred, the legal ownership has been transferred;
The following conditions should be met for the recognition of export product revenue: the Company has declared the productaccording to the contract, obtained the bill of lading, collected the payment for goods or obtained the receipt certificate, and therelevant economic benefits are likely to flow in, the main risks and rewards of the ownership of goods have been transferred, andthe 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 project andmetro platform screen door project construction. As the customer can control the goods under construction in the process of theCompany's performance, the Company takes them as the performance obligations within a certain period of time, and recognizesthe income according to the performance progress, except that the performance progress cannot be reasonably determined. TheCompany determines the performance schedule of providing services according to the input method. The performance scheduleshall be determined according to the proportion of the actual contract cost to the estimated total contract cost. On the balance sheetdate, the Company re estimates the progress of completed or completed services to reflect the changes in performance.
④ Real estate sales contract
The income of the Company's real estate development business is recognized when the control of the property is transferredto the customer. Based on the terms of the sales contract and the legal provisions applicable to the contract, the control of theproperty 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 customer
obtains 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.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 or offsetrelated 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 to thelending 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 value ofthe 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 day andthe tax base and the liabilities method to recognize the deferred income tax. 26. Deferred income tax assets and deferred incometax 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 future tooffset the deductible temporary differences, the deferred income tax assets that have not been recognized in the previous period arerecognized.
On the balance sheet day, the Company re-examines the book value of the deferred income tax assets. If it is unlikely to haveadequate taxable proceeds to reduce the benefits of the deferred income tax assets, less the deferred income tax assets' book value.When there is adequate taxable proceeds, the lessened amount will be reversed.
(2) Deferred income tax assets
All provisional differences in taxable income of the Company shall be measured on the basis of the estimated income tax ratefor the period of transfer-back and shall be recognized as deferred income tax liabilities, except that:
At the same time, the impact on income tax of deductible temporary discrepancies resulting the initial recognition of assets orliabilities 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 In the event of temporary discrepancy of deductible investment related to subsidiaries, Joint venture joint ventures, andmeeting the two conditions, the amount of impact (talent) on income tax shall be deemed as deferred income tax assets:
A. The Company is able to control the time of temporary discrepancy transfers;
B Temporary discrepancies are likely to be reversed in the foreseeable future;
(3) Deferred income tax assets
(1) Deferred income tax liabilities or assets associated with enterprise consolidation
Temporary difference of taxable tax or deductible temporary difference generated by enterprise merger under non-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 effects oftemporary discrepancy on income tax include the following: Other integrated benefits such as fair value change of financial assetsavailable for sale, retroactive adjustment of accounting policy changes or retroactive restatement of accounting error correctiondiscrepancy to adjust the initial retained income, and mixed financial instruments including liabilities and equity.
③ Compensation for losses and tax deductions
A. Compensable losses and tax deductions from the Company's own operations
Deductible losses refer to the losses calculated and determined in accordance with the provisions of the tax law that 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 toobtain 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 relevant assetcost or current profit and loss according to the straight-line method (or other systematic and reasonable methods) in each period ofthe 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. The recognition and measurement ofright of use assets and lease liabilities are detailed in Chapter X, V. Important accounting policies and accounting estimates. 22.Right of use assets and 28. Lease liabilities.
(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 payments
obtained 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 the leaseinvestment (the sum of the unsecured residual value and the present value of the lease receipts not received on the lease beginningdate discounted according to the lease embedded interest rate), and terminates the recognition of the financial lease assets. Duringeach period of the lease term, the Company calculates and recognizes the interest income according to the interest rate embeddedin 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 lessee
On the effective date of the lease change, the Company reconfirmed the lease term and discounted the changed lease paymentat the revised discount rate to re-measure the lease liability. When calculating the present value of the lease payment after thechange, the implicit interest rate of the lease during the remaining lease period shall be used as the discount rate; If it is impossibleto determine the implicit interest rate of the lease for the remaining lease period, the incremental loan interest rate on the effectivedate of the lease change shall be used as the discount rate.
The impact of the above lease liability adjustment shall be accounted for according to the following circumstances:
If the lease scope is reduced or the lease term is shortened due to the lease change, the book value of the right to use assetsshall be reduced, and the relevant gains or losses of partial or complete termination of the lease shall be included in the currentprofits and losses; for other lease changes, the book value of the right to use assets shall be adjusted accordingly.
The Company as leasor
If the operating lease is changed, the Company will treat it as a new lease for accounting from the effective date of the change,and the amount of lease receipts received in advance or receivable related to the lease before the change is regarded as the amountof 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 in accordancewith 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 recognize thetransferred assets, recognize a financial liability equal to the transfer income, and conduct accounting treatment for the financialliability in accordance with 9。 Financial instruments in Chapter X, V, Important accounting policies and accounting estimates. Ifthe asset transfer belongs to sales, the Cmpany measures the right to use assets formed by sale and leaseback according to the partof the book value of the original assets related to the right to use obtained by leaseback, and only recognizes the relevant gains orlosses 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 thetransferred asset, but recognizes a financial asset equal to the transfer income, and carries out accounting treatment on the financialasset in accordance with 9. Financial instruments in Chapter X, V. Important accounting policies and accounting estimates. If theasset transfer belongs to sales, the Company shall conduct accounting treatment for asset purchase and asset lease in accordancewith other applicable accounting standards for business enterprises.
34. Other significant accounting policies and estimates
(1) Measurement of Fair Value
Fair value refers to the amount of asset exchange or liabilities settlement by both transaction parties familiar with the situationin 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 from
market 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 input value,then uses the second level input value, and finally uses the third level input value. First level: quotation of same assets or liabilitiesin an active market (unadjusted) The second level input value is a directly or indirectly observable input value of the asset orliability in addition to the first level input value. The input value of the third level is the unobservable input value of the relatedasset 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 projects
Hedging 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 changes areincluded in the current profit and loss, but designated as fair value and whose changes are included in the current profit and loss,and their own credit risk changes caused by changes in fair value except for financial liabilities included in other comprehensiveincome.
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 of theproject. 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 bythe 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 measurement
If the conditions for applying hedge accounting method are met, it shall be handled according to the following methods:
Cash flow hedging
The part of hedging tool gains or losses that is valid for hedging is recognized as other comprehensive income as a cash flowhedging reserve, and the part that is invalid for hedging (that is, other gains or losses after deducting other comprehensive income),are counted Into the current profit and loss. The amount of cash flow hedging reserve is determined according to the lower of theabsolute amounts of the following two items: ①accumulated gains or losses of hedging instruments since the hedging. Theamount in the effective arbitrage is recognized by the accumulative gains or losses from the starting of arbitrage and accumulativechanges 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 the
same 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 reduce theshare capital by the total amount of the written-off shares, adjust the owner's equity by the difference between the price paid by thepurchased stocks (including transaction costs) and the total amount of the written-off shares, offset the capital reserve (sharecapital 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 they arecancelled 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 unused taxloss. 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 recognitionThe 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 contractThe management shall make relevant judgment to confirm the income and expenses of project contracting business accordingto the performance progress. If losses are expected to occur in the project contract, such losses shall be recognized as currentexpenses. The management of the Company estimates the possible losses according to the budget of the project contract. TheCompany 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 contractrevenue 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 cost
For 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
(2) Changes in major accounting estimates
□ Applicable ? Inapplicable
VI. Taxation
1. Major taxes and tax rates
| Tax | Tax basis | Tax rate |
| VAT | Taxable income | 3%, 5%, 6%, 9%, 13% |
| City maintenance and construction tax | Taxable turnover | 1%, 5%, 7% |
| Enterprise income tax | Taxable income | See the following table |
| Education surtax | Taxable turnover | 3% |
| Local education surtax | Taxable turnover | 2% |
Tax rates applicable for different tax payers
| Tax payer | Income tax rate |
| The Company | 25% |
| Shenzhen Fangda Jianke Co., Ltd. (hereinafter Fangda Jianke) | 15% |
| Fangda Zhiyuan Technology Co., Ltd. (hereinafter Fangda Zhiyuan) | 15% |
| Fangda New Material (Jiangxi) Co., Ltd. (hereinafter Fangda Jiangxi New Material) | 15% |
| Dongguan Fangda New Material Co., Ltd. (hereinafter Fangda Dongguan New Material) | 15% |
| Chengdu Fangda Construction Technology Co., Ltd. (hereinafter Fangda Chengdu Technology) | 15% |
| Shenzhen Fangda Property Development Co., Ltd. (hereinafter Fangda Property Development) | 25% |
| Shenzhen Fangda New Energy Co., Ltd. (hereinafter 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 Zhichuang Technology (Hong Kong) Co., Ltd, (Fangda Zhichuang Hong Kong) | 16.50% |
| Fangda Zhiyuan Technology (Wuhan) Co., Ltd, (Fangda Wuhan Zhiyuan) | 25% |
| Fangda Zhiyuan Technology (Nanchang) Co., Ltd, (Fangda Nanchang Zhiyuan) | 25% |
| Fangda Zhichuang Technology (Dongguan) Co., Ltd, (Fangda Dongguan Zhichuang) | 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 (hereinafter Fangda Australia) | 30% |
| Shanghai Fangda Zhijian Technology Co., Ltd. (hereinafter referred to as Fangda Shanghai Zhijian company) | 15% |
| Shenzhen Fangda Yunzhi Technology Co., Ltd. (hereinafter 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. (hereinafter Fangda Yunzhu) | 15% |
| Shenzhen Yunzhu Testing Technology Co., Ltd. (Hereinafter Fangda Yunzhu Testing) | 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, StateAdministration 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 enterprisejointly issued by the Department of Science and Technology of Sichuan Province, the Department of Finance of Sichuan Province,the State Administration of Taxation and the Sichuan Provincial Taxation Bureau. Within three years after obtaining thequalification of high tech enterprise (2020-2022), the income tax will continue to be levied at 15%.
(5) 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), and the income tax is levied at 15%.
(6) On December 2, 2019, the subsidiary Dongguan Fangda New Materials Co., Ltd. obtained the “High-tech EnterpriseCertificate” jointly issued by Guangdong Science and Technology Department, Guangdong Provincial Department of Finance, andGuangdong Provincial Taxation Bureau. The income tax shall be levied at 15% within three years after the qualification of thehigh-tech enterprise is recognized (December 2019 to December 2022).
(9) On November 12, 2020, the subsidiary Fangda Shanghai Zhijian obtained the certificate of high tech enterprise jointlyissued by Shanghai Science and Technology Commission, Shanghai Finance Bureau and Shanghai Taxation Bureau. Within threeyears (from 2020 to 2022) after obtaining the qualification of high tech enterprise, the income tax will continue to be charged at15%.
(8) On December 11, 2021, 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 on the Implementation of Preferential Tax Reduction and Exemption Policies for Small andMicro Enterprises (CS [2019] No. 13) and the Announcement on the Implementation of Preferential Income Tax Policies forSmall and Micro Enterprises and Individual Industrial and Commercial Households (Announcement No. 12 of the StateAdministration of Taxation of the Ministry of Finance in 2021) issued by the Ministry of Finance and the State Administration ofTaxation, some companies belong to small and low profit enterprises in 2021, and their income is subject to enterprise income taxin 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: | 791.52 | 3,192.76 |
| Bank deposits | 589,739,116.72 | 910,763,535.83 |
| Other monetary capital | 441,575,201.58 | 376,797,030.73 |
| Total | 1,031,315,109.82 | 1,287,563,759.32 |
| Including: total amount deposited in overseas | 44,695,303.07 | 43,244,091.68 |
| The total amount of money that has restrictions on use due to mortgage, pledge or freezing | 437,397,096.43 | 395,312,687.73 |
Others:
(1) The use of restricted funds in bank deposits is RMB8,733,578.29, RMB690,011.47 isdeposited in real estate development supervision accounts, RMB7,079,654.09 is deposited inspecial labor insurance accounts and migrant workers’ wage accounts, and other security depositaccounts. The deposit is RMB963,912.73; the restricted funds used in other currency funds areRMB428,663,518.14, mainly for draft deposits, periodic guarantee deposits, guarantee depositsfor issuance of guarantees, etc. In addition, there are no other funds in the monetary funds at the end of the period that
have restrictions on use and potential recovery risks due to mortgages, pledges or freezing.
(2) In the preparation of the cash flow statement, the above-mentioned deposits and other restricted deposits are not used as cashand cash equivalents.
(3) At the end of the period, the Company's total amount deposited abroad was RMB44,695,303.07.
2. Transactional financial assets
In RMB
| Item | Closing balance | Opening balance |
| Financial assets measured at fair value with variations accounted into current income account | 32,133,168.82 | 25,135,241.89 |
| Including: Investment of financial products | 32,133,168.82 | 25,135,241.89 |
| Total | 32,133,168.82 | 25,135,241.89 |
3. Derivative financial assets
In RMB
| Item | Closing balance | Opening balance |
| Futures contracts | 310,325.00 | |
| Forward foreign exchange contract | 1,768,884.99 | 759,262.62 |
| Total | 1,768,884.99 | 1,069,587.62 |
4. Notes receivable
(1) Classification of notes receivable
In RMB
| Item | Closing balance | Opening balance |
| Bank acceptance | 10,149,296.82 | 32,759,446.43 |
| Commercial acceptance | 147,046,234.44 | 133,618,433.58 |
| Total | 157,195,531.26 | 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 provision for bad debts by portfolio | 159,888,645.58 | 100.00% | 2,693,114.32 | 1.68% | 157,195,531.26 | 168,962,589.90 | 100.00% | 2,584,709.89 | 1.53% | 166,377,880.01 |
| Including: | ||||||||||
| Bank acceptance | 10,149,296.82 | 6.35% | 0.00 | 0.00% | 10,149,296.82 | 32,759,446.43 | 19.39% | 32,759,446.43 | ||
| Commercial acceptance | 149,739,348.76 | 93.65% | 2,693,114.32 | 1.80% | 147,046,234.44 | 136,203,143.47 | 80.61% | 2,584,709.89 | 1.90% | 133,618,433.58 |
| Total | 159,888,645.58 | 100.00% | 2,693,114.32 | 1.68% | 157,195,531.26 | 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 | 149,739,348.76 | 2,693,114.32 | 1.80% |
| Total | 149,739,348.76 | 2,693,114.32 | |
Provision for bad debts by combination: bank acceptance
In RMB
| Name | Closing balance | ||
| Remaining book value | Bad debt provision | Provision rate | |
| Bank acceptance | 10,149,296.82 | 0.00 | 0.00% |
| Total | 10,149,296.82 | 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 | 108,404.43 | 2,693,114.32 | |||
| Total | 2,584,709.89 | 108,404.43 | 2,693,114.32 | |||
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 | 15,724,516.20 | |
| Commercial acceptance | 19,312,032.12 | |
| Total | 35,036,548.32 |
(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 | 1,500,000.00 |
| Total | 1,500,000.00 |
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 | 83,718,640.10 | 11.61% | 78,221,018.60 | 93.43% | 5,497,621.50 | 83,718,640.09 | 11.18% | 78,221,018.60 | 93.43% | 5,497,621.49 |
| Including: | ||||||||||
| 1. Customer 1 | 54,873,223.21 | 7.61% | 54,873,223.21 | 100.00% | 0.00 | 54,873,223.21 | 7.32% | 54,873,223.21 | 100.00% | 0.00 |
| 2. Customer 2 | 4,388,338.91 | 0.61% | 4,388,338.91 | 100.00% | 0.00 | 4,388,338.91 | 0.59% | 4,388,338.91 | 100.00% | 0.00 |
| 3. Customer 3 | 13,461,834.96 | 1.87% | 13,461,834.96 | 100.00% | 0.00 | 13,461,834.96 | 1.80% | 13,461,834.96 | 100.00% | 0.00 |
| 4. Customer 4 | 5,996,382.91 | 0.83% | 2,998,191.46 | 50.00% | 2,998,191.45 | 5,996,382.91 | 0.80% | 2,998,191.46 | 50.00% | 2,998,191.45 |
| 5. Customer 5 | 4,998,860.11 | 0.69% | 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 |
| Account receivable for which bad debt provision is made by group | 637,479,622.48 | 88.39% | 87,335,675.31 | 13.70% | 550,143,947.17 | 664,994,519.44 | 88.82% | 114,038,316.73 | 17.15% | 550,956,202.71 |
| Including: | ||||||||||
| 1. Portfolio 1: Engineering operations section | 403,584,043.08 | 55.96% | 73,771,340.16 | 18.28% | 329,812,702.92 | 414,989,471.61 | 55.43% | 101,816,476.32 | 24.53% | 313,172,995.29 |
| 2. Portfolio 2: Real estate business payments | 146,169,177.61 | 20.27% | 7,760,222.96 | 5.31% | 138,408,954.65 | 153,920,735.18 | 20.56% | 7,774,660.29 | 5.05% | 146,146,074.89 |
| 3. Portfolio 3: Other business models | 87,726,401.79 | 12.16% | 5,804,112.19 | 6.62% | 81,922,289.60 | 96,084,312.65 | 12.83% | 4,447,180.12 | 4.63% | 91,637,132.53 |
| Total | 721,198,262.58 | 100.00% | 165,556,693.91 | 22.96% | 555,641,568.67 | 748,713,159.53 | 100.00% | 192,259,335.33 | 25.68% | 556,453,824.20 |
Separate bad debt provision: separate provision
In RMB
| Name | Closing balance | |||
| Remaining book | Bad debt provision | Provision rate | Reason | |
| value | ||||
| 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 | 4,388,338.91 | 4,388,338.91 | 100.00% | Customer credit status deteriorates and is hard to recover |
| 3. Customer 3 | 13,461,834.96 | 13,461,834.96 | 100.00% | Customer credit status deteriorates and is hard to recover |
| 4. Customer 4 | 5,996,382.91 | 2,998,191.46 | 50.00% | Customer credit status deteriorates |
| 5. Customer 5 | 4,998,860.10 | 2,499,430.06 | 50.00% | Customer credit status deteriorates |
| Total | 83,718,640.09 | 78,221,018.60 |
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 | 220,474,180.55 | 4,319,222.59 | 1.96% |
| 1-2 years | 41,032,911.21 | 2,322,462.77 | 5.66% |
| 2-3 years | 42,356,249.56 | 5,404,657.44 | 12.76% |
| 3-4 years | 42,573,870.31 | 8,412,596.78 | 19.76% |
| 4-5 years | 6,746,007.84 | 2,911,576.97 | 43.16% |
| Over 5 years | 50,400,823.61 | 50,400,823.61 | 100.00% |
| Total | 403,584,043.08 | 73,771,340.16 | |
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 | 99,633,253.30 | 996,332.52 | 1.00% |
| 1-2 years | 2,164,982.12 | 108,249.11 | 5.00% |
| 2-3 years | 0.00 | 0.00 | |
| 3-4 years | 22,273,070.00 | 3,340,960.50 | 15.00% |
| 4-5 years | 0.00 | 0.00 | |
| Over 5 years | 22,097,872.19 | 3,314,680.83 | 15.00% |
| Total | 146,169,177.61 | 7,760,222.96 | |
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 | 45,943,857.36 | 335,390.16 | 0.73% |
| 1-2 years | 16,376,359.56 | 343,903.54 | 2.10% |
| 2-3 years | 13,477,800.33 | 1,134,830.79 | 8.42% |
| 3-4 years | 10,287,961.94 | 2,549,356.97 | 24.78% |
| 4-5 years | 1,476,639.38 | 1,276,847.51 | 86.47% |
| Over 5 years | 163,783.22 | 163,783.22 | 100.00% |
| Total | 87,726,401.79 | 5,804,112.19 |
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 | Closing balance |
| Within 1 year (inclusive) | 366,483,937.52 |
| 1-2 years | 59,574,252.89 |
| 2-3 years | 55,834,049.89 |
| Over 3 years | 239,306,022.28 |
| 3-4 years | 84,348,177.60 |
| 4-5 years | 15,048,208.33 |
| Over 5 years | 139,909,636.35 |
| Total | 721,198,262.58 |
Accounts receivable with significant single amount aged over three years in curtain wall engineering business:
| Customer | 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 | 13,461,834.96 | 13,461,834.96 | Customer credit status deteriorates | Yes |
| Customer 3 | 12,363,915.90 | 2,443,109.78 | Due to long settlement period | No |
| Customer 4 | 26,002,530.93 | 26,002,530.93 | Customer credit status deteriorates | Yes |
| Customer 5 | 10,242,182.99 | 10,242,182.99 | 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 | 78,221,018.60 | ||||
| Provision for bad debts by combination | 114,038,316.73 | -26,702,641.42 | 87,335,675.31 | |||
| Total | 192,259,335.33 | -26,702,641.42 | 165,556,693.91 | |||
(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 |
| Customer 1 | 58,315,441.48 | 8.08% | 6,843,334.47 |
| Customer 2 | 54,873,223.21 | 7.61% | 54,873,223.21 |
| Customer 3 | 35,387,305.12 | 4.91% | 2,364,048.70 |
| Customer 4 | 31,500,000.00 | 4.37% | 2,912,732.66 |
| Customer 5 | 26,002,530.93 | 3.60% | 26,002,530.93 |
| Total | 206,078,500.74 | 28.57% |
(4) Receivables derecognized due to transfer of financial assets
| Customer | Way of transfer | De-recognized amount | Gain or loss related to the de-recognition |
| Customer 1 | Factoring | 1,842,845.54 | -88,941.28 |
| Customer 2 | Factoring | 10,391,923.85 | -413,846.66 |
| Customer 3 | Factoring | 1,500,000.00 | -81,221.92 |
| Customer 4 | Factoring | 9,195,976.52 | -365,259.08 |
| Customer 5 | Factoring | 440,708.24 | -17,601.40 |
| Customer 6 | Factoring | 2,654,800.00 | -109,481.44 |
| Customer 7 | Factoring | 7,941,333.15 | -255,027.30 |
| Customer 8 | Factoring | 2,900,000.00 | -115,504.58 |
| Customer 9 | Factoring | 5,000,000.00 | -65,625.00 |
| Total | 41,867,587.30 | -1,512,508.66 |
(5) Amount of assets and liabilities formed by transferring accounts receivable and continuing involvement
| Customer | Transfer method of assets | Amount of assets formed by continued involvement | Amount of liabilities formed by continued involvement |
| Customer 1 | Recourse factoring | 600,000.00 | 600,000.00 |
| Customer 2 | Credit discount | 1,637,287.44 | 1,637,287.44 |
| Customer 3 | Credit discount | 2,781,343.60 | 2,781,343.60 |
| Total | 8,381,343.60 | 8,381,343.60 |
6. Receivable financing
In RMB
| Item | Closing balance | Opening balance |
| Notes receivable | 19,031,714.87 | 4,263,500.00 |
| Total | 19,031,714.87 | 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 | 16,267,306.91 | 69.97% | 18,013,831.62 | 78.24% |
| 1-2 years | 2,291,097.29 | 9.85% | 805,756.05 | 3.50% |
| 2-3 years | 1,645,036.13 | 7.08% | 2,467,980.33 | 10.72% |
| Over 3 years | 3,046,943.63 | 13.10% | 1,734,917.03 | 7.54% |
| Total | 23,250,383.96 | 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 RMB8,467,290.80, accounting for 36.42% of thetotal prepayments at the end of the period.
8. Other receivables
In RMB
| Item | Closing balance | Opening balance |
| Other receivables | 179,462,261.72 | 165,093,406.23 |
| Total | 179,462,261.72 | 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 | 109,414,911.76 | 106,427,141.89 |
| Construction borrowing and advanced payment | 38,107,332.07 | 31,857,018.14 |
| Staff borrowing and petty cash | 2,566,722.51 | 1,828,554.92 |
| VAT refund receivable | 952,964.52 | 4,903,075.25 |
| Debt by Luo Huichi | 12,992,291.48 | 12,992,291.48 |
| Others | 38,991,541.49 | 29,074,979.66 |
| Total | 203,025,763.83 | 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 | 967,450.66 | 1,427,328.15 | -820,931.81 | 1,573,847.00 |
| Balance on June 30, 2022 | 3,183,901.84 | 2,001,196.52 | 18,378,403.75 | 23,563,502.11 |
Changes in book balances with significant changes in the current period
□ Applicable ? Inapplicable
Account age
In RMB
| Age | Closing balance |
| Within 1 year (inclusive) | 91,760,188.97 |
| 1-2 years | 1,036,118.15 |
| 2-3 years | 1,666,012.83 |
| Over 3 years | 108,563,443.88 |
| 3-4 years | 70,447,840.30 |
| 4-5 years | 20,164,999.65 |
| Over 5 years | 17,950,603.93 |
| Total | 203,025,763.83 |
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 | 21,989,655.11 | 1,573,847.00 | 23,563,502.11 | |||
| Total | 21,989,655.11 | 1,573,847.00 | 23,563,502.11 | |||
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 | Margin and | 70,062,675.83 | 3-4 years | 34.51% | 1,401,253.52 |
| Co. Ltd. | current account | ||||
| Bangshen Electronics (Shenzhen) Co., Ltd. | Deposit | 20,000,000.00 | 4-5 years | 9.85% | 400,000.00 |
| Shenzhen Rijiasheng Trading Co., Ltd | Arrears | 18,708,945.57 | 1-2 years | 9.22% | 1,870,894.56 |
| Luo Huichi | Arrears | 12,992,291.48 | Over 5 years | 6.40% | 12,992,291.48 |
| Shenzhen Henggang Dakang Co., Ltd. | Deposit | 8,000,000.00 | 3-4 years | 3.94% | 160,000.00 |
| Total | 129,763,912.88 | 63.91% | 16,824,439.56 |
9. Inventories
(1) Classification of inventories
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 | 216,522,002.08 | 216,522,002.08 | 214,159,331.62 | 214,159,331.62 | ||
| Development products | 201,840,310.24 | 201,840,310.24 | 215,045,857.53 | 215,045,857.53 | ||
| Contract performance costs | 100,377,843.11 | 100,377,843.11 | 120,770,607.88 | 120,770,607.88 | ||
| Raw materials | 145,821,074.44 | 145,821,074.44 | 87,964,749.50 | 87,964,749.50 | ||
| Product in process | 22,899,157.31 | 22,899,157.31 | 71,066,791.34 | 71,066,791.34 | ||
| Finished goods in stock | 11,413,803.15 | 11,413,803.15 | 7,514,662.13 | 7,514,662.13 | ||
| Low price consumable | 28,990.66 | 28,990.66 | 190,365.86 | 190,365.86 | ||
| OEM materials | 16,276,453.42 | 16,276,453.42 | 16,568,559.12 | 16,568,559.12 | ||
| Materials in transit | 531,179.86 | 531,179.86 | ||||
| Goods delivered | 2,901,720.28 | 2,901,720.28 | ||||
| Total | 718,612,534.55 | 718,612,534.55 | 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 | Estimated total | Opening | Transferred to | Other decreas | Increase | Closing balance | Accumulative | Including: | Capital source |
| finish time | investment | balance | development product in this period | e in this period | (development cost) in this period | capitalized interest | capitalized interest for the current period | ||||
| Dakang Village Project in Shenzhen | December 1, 2024 | December 31, 2030 | 3,600,000,000.00 | 199,023,484.28 | 595,338.13 | 199,618,822.41 | Bank loan and self-owned fund | ||||
| Fangda Bangshen Industry Park | December 1, 2023 | December 31, 2025 | 870,000,000.00 | 15,135,847.34 | 1,767,332.33 | 16,903,179.67 | Bank loan and self-owned fund | ||||
| Total | 4,470,000,000.00 | 214,159,331.62 | 2,362,670.46 | 216,522,002.08 |
Disclose the main project information of "Development Products" according to the following format:
In RMB
| 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 | 10,703,725.24 | 52,226,452.13 | 2,009,651.62 | ||
| Nanchang Fangda Center | April 27, 2021 | 152,115,680.16 | 2,501,822.05 | 149,613,858.11 | 5,502,309.51 | ||
| Total | 215,045,857.53 | 13,205,547.29 | 201,840,310.24 | 7,511,961.13 |
(2) Capitalization rate of interest in the closing inventory balance
As at June 30, 2022, the amount of the capitalization of borrowing costs in the balance of the end-of-period inventory wasRMB7,511,961.13.
10. Contract assets
In RMB
| Item | Closing balance | Opening balance | ||||
| Remaining book value | Impairment provision | Book value | Remaining book value | Impairment provision | Book value | |
| Unsettled project funds | 2,088,604,051.45 | 168,444,310.53 | 1,920,159,740.92 | 1,840,664,586.03 | 144,079,042.31 | 1,696,585,543.72 |
| Unexpired warranty | 91,989,366.02 | 8,709,913.62 | 83,279,452.40 | 63,551,208.32 | 10,907,883.76 | 52,643,324.56 |
| deposit | ||||||
| Sales funds with conditional collection right | 47,400,395.42 | 3,784,739.50 | 43,615,655.92 | 34,103,742.16 | 384,937.31 | 33,718,804.85 |
| Total | 2,227,993,812.89 | 180,938,963.65 | 2,047,054,849.24 | 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 |
| Unsettled project funds | 223,574,197.20 | This is mainly due to the unsettled project funds with conditional collection rights arising from the revenue recognized in the project contract during the reporting period |
| Unexpired warranty deposit | 30,636,127.84 | Mainly due to the increase of projects in the warranty period after the completion of the project contract during the reporting period |
| Total | 254,210,325.04 | —— |
If the provision for impairment 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 impairment:
□ 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 |
| Unsettled project funds | 24,365,268.22 | |||
| Unexpired warranty deposit | -2,197,970.14 | |||
| Sales funds with conditional collection right | 3,399,802.19 | |||
| Total | 25,567,100.27 | —— |
11. Other current assets
In RMB
| Item | Closing balance | Opening balance |
| Tax to be input | 143,671,906.98 | 145,743,267.08 |
| Overpayment and prepayment of income tax | 84,983,087.01 | 98,092,258.00 |
| Other prepaid taxes | 21,991,159.61 | 8,520,856.65 |
| Deferred discount expense | 12,118,850.83 | 12,428,625.55 |
| Debt investment | 103,488,888.90 | |
| Others | 2,834,002.43 | 1,499.01 |
| Total | 369,087,895.76 | 264,786,506.29 |
12. Long-term share equity investment
In RMB
| Investe | Openin | Change (+,-) | Closing | Balance |
| d entity | g book value | 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 | book value | of impairment provision at the end of the period |
| 1. Joint venture | |||||||||||
| 2. Associate | |||||||||||
| Ganshang Joint Investment | 2,365,399.31 | 3,789.03 | 2,369,188.34 | ||||||||
| Jiangxi Business Innovative Property Joint Stock (Jiangxi Business Inovation) | 52,853,546.83 | -36,763.18 | 52,816,783.65 | ||||||||
| Subtotal | 55,218,946.14 | -32,974.15 | 55,185,971.99 | ||||||||
| Total | 55,218,946.14 | -32,974.15 | 55,185,971.99 | ||||||||
13. Investment in other equity tools
In RMB
| Item | Closing balance | Opening balance |
| Unlisted equity instrument investment | 14,180,652.65 | 14,180,652.65 |
| Total | 14,180,652.65 | 14,180,652.65 |
Sub-disclosure of non-tradable equity instrument investment in the current period
In RMB
| Item | 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 Semi-conductor Lighting Co., Ltd. (hereinafter Shenyang Fangda) | 14,381,923.02 | |||||
| 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 | 7,504,750.83 | 7,525,408.24 |
| Total | 7,504,750.83 | 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 | 224,704.02 | 224,704.02 |
| (1) Provision or amortization | 224,704.02 | 224,704.02 |
| 3. Decrease in this period | ||
| 4. Closing balance | 7,477,715.38 | 7,477,715.38 |
| 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 | 9,911,109.01 | 9,911,109.01 |
| 2. Opening book value | 10,135,813.03 | 10,135,813.03 |
(2) Investment real estate measured at fair value
? Applicable □ Inapplicable
In RMB
| Item | Houses & buildings | Total |
| I. Opening balance | 5,755,216,580.10 | 5,755,216,580.10 |
| II. Change in this period | -1,867,274.91 | -1,867,274.91 |
| Add: external purchase | 0.00 | 0.00 |
| Less: other transfer-out | 2,935,603.51 | 2,935,603.51 |
| Change in fair value | 1,068,328.60 | 1,068,328.60 |
| III. Closing balance | 5,753,349,305.19 | 5,753,349,305.19 |
Disclosure of investment real estate measured at fair value by projects
In RMB
| Project name | Location | Completion time | Building area (m2) | Rental income in the report period | Opening fair value | Closing fair value | Change in fair value | Reason for the change and report |
| Commercial podium of Fangda Town | Shenzhen | 11 October 2017 | 22,551.58 | 17,144,114.39 | 1,344,899,032.00 | 1,344,899,032.00 | 0.00% | |
| Building 1# of Fangda Town | Shenzhen | 29 December 2018 | 76,623.31 | 43,210,570.72 | 3,640,588,848.63 | 3,640,588,848.63 | 0.00% | |
| Fangda Building | Shenzhen | 28 December 2002 | 17,432.38 | 8,968,746.78 | 329,471,982.00 | 329,471,982.00 | 0.00% | |
| Nanchang Fangda Center | Nanchang | December 10, 2020 | 37,725.82 | 5,165,210.22 | 436,493,838.47 | 434,626,563.56 | -0.43% | |
| Total | 154,333.09 | 74,488,642.11 | 5,751,453,701.10 | 5,749,586,426.19 | -0.03% |
Whether the Company has investment real estate in the current construction period
□ Yes ? No
Whether there is new investment real estate measured at fair value in the report period
□ Yes ? No
(3) Investment real estate without ownership certificate
In RMB
| Item | Book value | Reason |
| Nanchang Fangda Center project 4# building commercial | 17,345,966.44 | The acceptance record is being handled |
Other note
① The fair value of some real estate in Fangda Town is RMB1,958,894,944.14, 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 real
estate in fangdacheng is RMB1,344,899,032.00, 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 transfers out in the current period are due to the needs of business development. The Company has transferred somehouses of Nanchang Fangda Center from external rental to self use.
16. Fixed assets
In RMB
| Item | Closing balance | Opening balance |
| Fixed assets | 681,823,427.57 | 663,414,297.61 |
| Total | 681,823,427.57 | 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. Original 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 | 25,222,586.32 | 10,418,231.84 | 11,273.76 | 1,532,403.47 | 37,184,495.39 | |
| (1) Purchase | 10,371,081.60 | 10,418,231.84 | 874,368.07 | 21,663,681.51 | ||
| (2) Transfer-in of construction in progress | 14,851,504.72 | 658,035.40 | 15,509,540.12 | |||
| (3) Other increases | 11,273.76 | 11,273.76 | ||||
| 3. Decrease in this period | 2,800,131.20 | 1,139,518.96 | 2,663,142.67 | 1,227,229.26 | 7,830,022.09 | |
| (1) Disposal or retirement | 2,800,131.20 | 1,139,518.96 | 2,663,142.67 | 1,227,229.26 | 7,830,022.09 | |
| 4. Closing balance | 632,986,926.24 | 129,917,586.16 | 18,739,059.78 | 51,175,279.98 | 129,596,434.84 | 962,415,287.00 |
| 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 | 7,632,627.09 | 2,552,916.67 | 363,347.31 | 1,382,283.41 | 3,074,220.06 | 15,005,394.54 |
| (1) Provision | 7,632,627.09 | 2,552,916.67 | 357,568.71 | 1,382,283.41 | 3,074,220.06 | 14,999,615.94 |
| (2) Other increases | 5,778.60 | 5,778.60 | ||||
| 3. Decrease in this period | 258,186.41 | 329,705.18 | 2,396,828.40 | 1,075,331.21 | 4,060,051.20 | |
| (1) Disposal or retirement | 258,186.41 | 329,705.18 | 2,396,828.40 | 1,075,331.21 | 4,060,051.20 |
| 4. Closing balance | 103,927,969.61 | 93,309,886.93 | 14,439,314.94 | 31,238,202.17 | 37,580,016.28 | 280,495,389.93 |
| 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 | 529,058,956.63 | 36,527,856.03 | 4,299,744.84 | 19,920,451.51 | 92,016,418.56 | 681,823,427.57 |
| 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 | 115,455.69 | Historical reasons |
17. Construction in process
In RMB
| Item | Closing balance | Opening balance |
| Construction in process | 2,839,581.23 | 11,642,444.21 |
| Total | 2,839,581.23 | 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 Nanchang Fangda Center | 11,642,444.21 | 11,642,444.21 | ||||
| Decoration of the self-used part of Fangda Group East China Construction | 2,839,581.23 | 2,839,581.23 | ||||
| Base | ||||||
| Total | 2,839,581.23 | 2,839,581.23 | 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 Nanchang Fangda Center | 13,000,000.00 | 11,642,444.21 | 3,090,056.34 | 14,732,500.55 | 0.00 | 100.00% | Completed | Others | ||||
| Decoration of the self-used part of Fangda Group East China Construction Base | 6,080,000.00 | 2,839,581.23 | 2,839,581.23 | 46.70% | In construction | Others | ||||||
| Total | 19,080,000.00 | 11,642,444.21 | 5,929,637.57 | 14,732,500.55 | 0.00 | 2,839,581.23 |
18. 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 | 569,163.12 | 569,163.12 | |
| 3. Decrease in this period | 587,910.79 | 587,910.79 | |
| 4. Closing balance | 37,056,542.50 | 1,319,251.12 | 38,375,793.62 |
| II. Accumulative depreciation | |||
| 1. Opening balance | 6,344,621.50 | 609,063.25 | 6,953,684.75 |
| 2. Increase in this period | 6,310,611.40 | 304,531.62 | 6,615,143.02 |
| (1) Provision | 6,310,611.40 | 304,531.62 | 6,615,143.02 |
| 3. Decrease in this period | 195,970.20 | 195,970.20 | |
| (1) Disposal | 195,970.20 | 195,970.20 | |
| 4. Closing balance | 12,459,262.70 | 913,594.87 | 13,372,857.57 |
| 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 | 24,597,279.80 | 405,656.25 | 25,002,936.05 |
| 2. Opening book value | 30,730,668.67 | 710,187.87 | 31,440,856.54 |
19. Intangible assets
(1) Intangible assets
In RMB
| Item | Land using right | Patent | 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 | 968.87 | 808,447.54 | 809,416.41 | |
| (1) Purchase | 968.87 | 808,447.54 | 809,416.41 | |
| 3. Decrease in this period | ||||
| 4. Closing balance | 80,404,737.13 | 8,990,319.81 | 22,436,285.97 | 111,831,342.91 |
| 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 | 1,147,643.30 | 108,462.92 | 972,444.15 | 2,228,550.37 |
| (1) Provision | 1,147,643.30 | 108,462.92 | 972,444.15 | 2,228,550.37 |
| 3. Decrease in this period | ||||
| 4. Closing balance | 18,518,514.30 | 8,761,092.85 | 10,771,156.89 | 38,050,764.04 |
| 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 | 61,886,222.83 | 229,226.96 | 11,665,129.08 | 73,780,578.87 |
| 2. Opening book value | 63,033,866.13 | 336,721.01 | 11,829,125.69 | 75,199,712.83 |
20. 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 | 28,050.78 | 1,000,476.32 | ||
| Reconstruction project of sample room | 231,427.38 | 57,856.80 | 173,570.58 | ||
| Membership fee | 193,749.80 | 118,749.82 | 74,999.98 | ||
| Waterproofing works for employee dormitories | 472,886.09 | 79,291.98 | 393,594.11 | ||
| Management consulting service fee | 178,466.08 | 32,448.36 | 146,017.72 | ||
| Warehouse addition and renovation project | 151,376.19 | 30,275.22 | 121,100.97 | ||
| Dahuaxin Dongguan Songshanhu rubber area interlayer transformation | 180,428.08 | 90,214.08 | 90,214.00 | ||
| Factory wall painting and rolling shutter door engineering | 172,368.00 | 22,982.40 | 149,385.60 | ||
| Property insurance premium | 237,369.99 | 84,625.00 | 126,487.93 | 195,507.06 | |
| Plant ground reconstruction project | 319,593.71 | 43,581.00 | 276,012.71 | ||
| High voltage network access fee of East China base | 794,750.23 | 153,822.66 | 640,927.57 | ||
| Others | 1,427,827.57 | 1,614,472.08 | 794,315.49 | 2,247,984.16 | |
| Total | 5,388,770.22 | 1,699,097.08 | 1,578,076.52 | 5,509,790.78 |
21. 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 | 285,680,229.38 | 52,322,012.68 | 257,631,149.84 | 48,121,014.85 |
| Unrealized profit of internal transactions | 298,049,521.84 | 58,293,392.21 | 281,712,399.14 | 55,842,834.37 |
| Deductible loss | 224,697,948.29 | 49,538,340.07 | 194,235,656.90 | 44,060,479.20 |
| Credit impairment provision | 197,414,358.26 | 32,230,462.86 | 216,539,086.13 | 34,918,828.89 |
| Unrealizable gross profit | 106,053,789.85 | 26,513,447.43 | 114,199,793.34 | 27,967,001.62 |
| Anticipated liabilities | 3,052,064.92 | 457,809.74 | 6,347,809.40 | 1,161,300.00 |
| Deferred earning | 2,753,977.39 | 429,893.08 | 3,674,964.26 | 551,244.65 |
| Change in fair value | 2,907,950.88 | 436,192.63 | 1,079,130.19 | 161,869.53 |
| Accrued expenses and others | 12,967,806.54 | 2,473,278.36 | 8,914,405.11 | 1,339,159.89 |
| Total | 1,133,577,647.35 | 222,694,829.06 | 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 | 4,200,169,583.79 | 1,049,852,190.57 | 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 | 18,022,638.21 | 4,505,659.55 | 31,539,658.09 | 7,884,914.52 |
| Rental income | 35,512,252.70 | 8,878,063.17 | 34,856,116.84 | 8,714,029.21 |
| Total | 4,255,240,080.17 | 1,063,619,814.66 | 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 | 222,694,829.06 | 214,123,733.00 | ||
| Deferred income tax liabilities | 1,063,619,814.66 | 1,066,631,858.80 |
(4) Details of unrecognized deferred income tax assets
In RMB
| Item | Closing balance | Opening balance |
| Deductible temporary difference | 78,842.21 | 554,677.54 |
| Deductible loss | 10,817,244.13 | 10,345,101.90 |
| Total | 10,896,086.34 | 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 | 1,233,589.22 | |
| 2023 | 4,575,983.46 | 4,575,983.46 | |
| 2024 | 1,276,235.76 | 1,276,235.76 | |
| 2025 | 800,020.76 | 213,129.83 | |
| 2026 | 2,355,213.17 | 3,046,163.63 | |
| 2027 | 576,201.76 | ||
| Total | 10,817,244.13 | 10,345,101.90 |
22. 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 | 94,328,082.78 | 10,050,259.99 | 84,277,822.79 | 72,288,658.32 | 7,952,729.45 | 64,335,928.87 |
| Prepaid house and equipment amount | 27,094,308.28 | 27,094,308.28 | 35,693,402.77 | 35,693,402.77 | ||
| Certificate of deposit | 311,792,353.94 | 311,792,353.94 | 306,738,886.82 | 306,738,886.82 | ||
| Others | 2,004,460.50 | 2,004,460.50 | 1,088,296.93 | 1,088,296.93 | ||
| Total | 435,219,205.50 | 10,050,259.99 | 425,168,945.51 | 415,809,244.84 | 7,952,729.45 | 407,856,515.39 |
23. Short-term borrowings
(1) Classification of short-term borrowings
In RMB
| Item | Closing balance | Opening balance |
| Loan by pledge | 74,536,621.23 | 58,450,232.49 |
| Guarantee loan | 92,099,305.57 | 10,013,291.67 |
| Credit borrow | 310,052,500.00 | 302,354,444.46 |
| Discount borrowing of acceptance bills | 1,146,202,710.82 | 916,656,430.03 |
| Total | 1,622,891,137.62 | 1,287,474,398.65 |
24. Derivative financial liabilities
In RMB
| Item | Closing balance | Opening balance |
| Futures contracts | 1,821,775.00 | |
| Forward foreign exchange contract | 18,916.89 | 11,871.20 |
| Total | 1,840,691.89 | 11,871.20 |
25. Notes payable
In RMB
| Type | Closing balance | Opening balance |
| Commercial acceptance | 39,025,946.98 | 185,747,490.66 |
| Bank acceptance | 690,667,133.63 | 663,697,808.43 |
| Total | 729,693,080.61 | 849,445,299.09 |
The total amount of payable bills that have matured but not been paid at the end of the period is RMB0.00.
26. Account payable
(1) Account payable
In RMB
| Item | Closing balance | Opening balance |
| Account repayable and engineering repayable | 912,872,170.52 | 942,689,466.48 |
| Construction payable | 16,885,608.55 | 58,406,046.64 |
| Payable installation and implementation fees | 351,215,766.97 | 327,879,727.83 |
| Others | 16,655,565.98 | 14,148,245.02 |
| Total | 1,297,629,112.02 | 1,343,123,485.97 |
(2) Significant payables aging more than 1 year
In RMB
| Item | Closing balance | Reason |
| Supplier 1 | 38,366,194.94 | Not mature |
| Total | 38,366,194.94 |
27. Prepayment received
(1) Prepayment received
In RMB
| Item | Closing balance | Opening balance |
| Rental | 2,850,390.49 | 1,280,482.93 |
| Total | 2,850,390.49 | 1,280,482.93 |
28. Contract liabilities
In RMB
| Item | Closing balance | Opening balance |
| Project funds collected in advance | 162,258,562.39 | 172,696,504.61 |
| Real estate sales payment | 5,775,179.83 | 4,082,802.11 |
| Material loan | 2,975,016.99 | 2,485,989.04 |
| Others | 1,148,805.06 | 921,581.39 |
| Total | 172,157,564.27 | 180,186,877.15 |
Collection of the top five real estate projects with pre-sale amount:
There are no pre-sale projects in this period.
29. Employees' wage payable
(1) Employees' wage payable
In RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| 1. Short-term remuneration | 68,789,749.61 | 178,747,991.87 | 215,310,335.94 | 32,227,405.54 |
| 2. Retirement pension program-defined contribution plan | 154,394.34 | 9,363,619.34 | 8,995,150.59 | 522,863.09 |
| 3. Dismiss compensation | 126,870.00 | 662,484.73 | 789,354.73 | 0.00 |
| Total | 69,071,013.95 | 188,774,095.94 | 225,094,841.26 | 32,750,268.63 |
(2) Short-term remuneration
In RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| 1. Wage, bonus, allowance and subsidies | 67,487,743.92 | 164,892,728.43 | 201,378,714.00 | 31,001,758.35 |
| 2. Employee welfare | 373,264.20 | 5,001,251.84 | 5,248,673.90 | 125,842.14 |
| 3. Social insurance | 47,164.22 | 3,910,607.97 | 3,804,603.29 | 153,168.90 |
| Including: medical insurance | 41,419.12 | 3,353,494.02 | 3,260,889.53 | 134,023.61 |
| Labor injury insurance | 3,048.20 | 205,068.29 | 201,086.05 | 7,030.44 |
| Breeding insurance | 2,696.90 | 352,045.66 | 342,627.71 | 12,114.85 |
| 4. Housing fund | 77,242.00 | 4,457,037.80 | 4,437,750.80 | 96,529.00 |
| 5. Labor union budget and staff education fund | 569,442.50 | 448,456.19 | 440,593.95 | 577,304.74 |
| 6. Short-term paid leave | 234,892.77 | 37,909.64 | 0.00 | 272,802.41 |
| Total | 68,789,749.61 | 178,747,991.87 | 215,310,335.94 | 32,227,405.54 |
(3) Defined contribution plan
In RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| 1. Basic pension | 150,523.04 | 9,089,101.84 | 8,730,490.89 | 509,133.99 |
| 2. Unemployment insurance | 3,871.30 | 274,517.50 | 264,659.70 | 13,729.10 |
| Total | 154,394.34 | 9,363,619.34 | 8,995,150.59 | 522,863.09 |
30. Taxes payable
In RMB
| Item | Closing balance | Opening balance |
| VAT | 11,325,684.35 | 7,130,265.98 |
| Enterprise income tax | 28,934,824.98 | 32,790,801.61 |
| Personal income tax | 970,987.26 | 1,525,425.02 |
| City maintenance and construction tax | 1,216,772.33 | 1,153,514.56 |
| Land using tax | 406,279.41 | 257,316.97 |
| Property tax | 5,388,161.43 | 1,133,817.11 |
| Education surtax | 609,411.60 | 582,762.56 |
| Local education surtax | 289,361.93 | 246,199.28 |
| Land VAT | 15,092,807.51 | 22,186,857.45 |
| Others | 336,431.50 | 273,686.68 |
| Total | 64,570,722.30 | 67,280,647.22 |
31. Other payables
In RMB
| Item | Closing balance | Opening balance |
| Other payables | 114,272,250.22 | 126,903,098.08 |
| Total | 114,272,250.22 | 126,903,098.08 |
(1) Other payables
1) Other payables presented by nature
In RMB
| Item | Closing balance | Opening balance |
| Performance and quality deposit | 29,529,457.19 | 47,863,587.46 |
| Deposit | 42,256,266.91 | 20,376,442.13 |
| Reserved expense | 1,395,266.85 | 4,048,028.82 |
| Others | 41,091,259.27 | 54,615,039.67 |
| Total | 114,272,250.22 | 126,903,098.08 |
(2) Significant payables aging more than 1 year
In RMB
| Item | Closing balance | Reason |
| Shenzhen Yikang Real Estate Co. Ltd. | 25,062,852.92 | Payment paid as agreed in the contract |
| Total | 25,062,852.92 |
32. Non-current liabilities due within 1 year
In RMB
| Item | Closing balance | Opening balance |
| Long-term loans due within 1 year | 71,874,849.32 | 65,634,120.55 |
| Lease liabilities due within one year | 10,047,645.41 | 12,784,437.21 |
| Total | 81,922,494.73 | 78,418,557.76 |
33. Other current liabilities
In RMB
| Item | Closing balance | Opening balance |
| Unterminated notes receivable | 35,539,366.27 | 25,877,995.14 |
| Substituted money on VAT | 23,006,763.25 | 22,220,366.63 |
| Total | 58,546,129.52 | 48,098,361.77 |
34. Long-term borrowings
(1) Classification of long-term borrowings
In RMB
| Item | Closing balance | Opening balance |
| Guarantee, mortgage and pledge loan | 1,370,374,849.32 | 1,399,134,120.55 |
| Less: Long-term loans due within 1 year | 71,874,849.32 | 65,634,120.55 |
| Total | 1,298,500,000.00 | 1,333,500,000.00 |
Notes to classification of long-term borrowings:
The above guarantee, mortgage and pledge loans are the guarantee guarantee provided by the Company and its subsidiary FangdaProperty and the mortgage guarantee provided by the subsidiary Fangda Property for some properties of Fangda Plaza, the 100%equity of the subsidiary Fangda Property held by the Company and the rent receivable pledge of the leased properties of FangdaProperty.Other note, including interest rate range:
The interest rate period of long-term loan is 3%-7%.
35. Lease liabilities
In RMB
| Item | Closing balance | Opening balance |
| Rental payments for houses, buildings and means of transport | 15,837,405.86 | 19,152,093.31 |
| Total | 15,837,405.86 | 19,152,093.31 |
36. Long-term payables
In RMB
| Item | Closing balance | Opening balance |
| Long-term payable | 190,640,219.18 | 183,640,219.18 |
| Total | 190,640,219.18 | 183,640,219.18 |
(1) Long term accounts payable listed by nature
In RMB
| Item | Closing balance | Opening balance |
| Disposal of equity repurchase | 190,640,219.18 | 183,640,219.18 |
37. Anticipated liabilities
In RMB
| Item | Closing balance | Opening balance | Reason |
| Pending lawsuit | 2,091,286.00 | ||
| Product quality warranty | 3,052,064.92 | 4,256,523.40 | |
| Total | 3,052,064.92 | 6,347,809.40 |
38. Deferred earning
In RMB
| Item | Opening balance | Increase | Decrease | Closing balance | Reason |
| Government subsidy | 9,566,525.60 | 0.00 | 283,322.58 | 9,283,203.02 | See the following table |
| Total | 9,566,525.60 | 0.00 | 283,322.58 | 9,283,203.02 |
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 | 9,452.16 | 30,393.05 | Assets-related | ||||
| Major investment project prize from Industry and Trade | 1,509,524.30 | 28,571.40 | 1,480,952.90 | Assets-related |
| Development Division of Dongguan Finance Bureau | ||||||||
| Distributed PV power generation project subsidy sponsored by Dongguan Reform and Development Commission | 343,750.25 | 12,499.98 | 331,250.27 | Assets-related | ||||
| Subsidized land transfer | 169,827.59 | 1,862.82 | 167,964.77 | Assets-related | ||||
| Special subsidy for industrial transformation, upgrading and development | 766,666.65 | 40,000.02 | 726,666.63 | Assets-related | ||||
| Enterprise informationization subsidy project of Shenzhen Small and Medium Enterprise Service Agency | 372,000.00 | 24,000.00 | 348,000.00 | Assets-related | ||||
| National Industry Revitalization and Technology Renovation Project fund | 5,377,983.50 | 153,864.30 | 5,224,119.20 | Assets-related | ||||
| Energy saving and environmental protection metal curtain wall production | 986,928.10 | 13,071.90 | 973,856.20 | Assets-related |
| technology transformation project | ||||||||
| Total | 9,566,525.60 | 283,322.58 | 9,283,203.02 |
39. 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 | |||||
40. 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 |
41. 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 gain/loss in previous terms | Less: amount written into other gains and transferred into gain/loss in previous terms | Less: Income tax expenses | After-tax amount attributed to the parent | After-tax amount attributed to minority shareholders | |||
| I. Other comprehensive income that will not be subsequently reclassified into profit and loss | -14,565,719.78 | -14,565,719.78 | ||||||
| Fair value change of investment in other equity tools | -14,565,719.78 | -14,565,719.78 | ||||||
| 2. Other misc. incomes that will be re-classified into gain and loss | 49,891,591.56 | -609,135.29 | -10,090.52 | -171,209.17 | -450,330.27 | 22,494.68 | 49,441,261.29 | |
| Cash flow hedge reserve | 926,186.62 | -1,141,394.52 | -10,090.52 | -171,209.17 | -960,094.83 | -33,908.21 | ||
| Translation difference of foreign exchange statement | -1,391,190.47 | 532,259.23 | 509,764.55 | 22,494.68 | -881,425.92 | |||
| Investment real estate measured at fair value | 50,356,595.41 | 50,356,595.41 | ||||||
| Other miscellaneous income | 35,325,871.78 | -609,135.29 | -10,090.52 | -171,209.17 | -450,330.27 | 22,494.68 | 34,875,541.51 |
42. 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 |
43. 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) | 2,521,701.04 | |
| Retained profit adjusted at beginning of year | 4,324,055,259.33 | 4,217,527,242.56 |
| Plus: Net profit attributable to owners of the parent | 112,685,273.77 | 111,488,701.33 |
| Common share dividend payable | 53,693,711.35 | |
| Adjustment to consolidation of entities under common control | 24,107,813.58 | |
| Closing retained profit | 4,383,046,821.75 | 4,304,908,130.31 |
44. Operational revenue and costs
In RMB
| Item | Amount occurred in the current period | Occurred in previous period | ||
| Income | Cost | Income | Cost | |
| Main business | 1,523,656,283.61 | 1,238,697,976.76 | 1,500,250,618.47 | 1,201,118,172.57 |
| Other businesses | 89,407,031.69 | 20,817,865.84 | 68,528,216.51 | 7,523,630.61 |
| Total | 1,613,063,315.30 | 1,259,515,842.60 | 1,568,778,834.98 | 1,208,641,803.18 |
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 | 1,150,768,372.43 | 300,269,751.24 | 144,893,896.06 | 8,159,691.65 | 8,971,603.92 | 1,613,063,315.30 |
| Including: | ||||||
| Curtain wall system and materials | 1,150,768,372.43 | 1,150,768,372.43 | ||||
| Subway screen door and service | 300,269,751.24 | 300,269,751.24 | ||||
| Real estate lease and sales | 144,893,896.06 | 144,893,896.06 | ||||
| PV power generation products | 8,159,691.65 | 8,159,691.65 | ||||
| Others | 8,971,603.92 | 8,971,603.92 | ||||
| Total | 1,150,768,372.43 | 300,269,751.24 | 144,893,896.06 | 8,159,691.65 | 8,971,603.92 | 1,613,063,315.30 |
Information related to performance obligations:
The two businesses of the Company's curtain wall system and materials, subway screen doors and services are mainly the contractscorresponding to the engineering projects. Usually, a contract constitutes a single performance obligation and is a performanceobligation performed within a certain period of time. The Company recognizes revenue according to the performance progress.The sales of photovoltaic power generation products and real estate belong to contracts corresponding to commodity sales. Usually,a contract constitutes a single performance obligation and is a performance obligation at a certain point in time. Revenue isrecognized when the customer obtains control of the relevant product.Information related to the transaction price allocated to the remaining performance obligations:
The amount of revenue corresponding to the performance obligations that have been signed, but not yet performed or not yetperformed at the end of the reporting period is RMB7,584,712,999.45, of which RMB2,254,431,606.27 is expected to berecognized in 2022 H2, and RMB4,021,981,724.01 is expected to be recognized in 2023, RMB1,308,299,669.17 is expected to berecognized in 2024 and beyond.Top-5 projects in terms of income received and recognized in the reporting period:
In RMB
| No. | Project name | Balanace |
| 1 | Fangda Town | 96,524,719.40 |
| 2 | Nanchang Fangda Center | 8,715,726.75 |
45. Taxes and surcharges
In RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| City maintenance and construction tax | 2,999,118.26 | 3,078,129.75 |
| Education surtax | 1,950,119.60 | 1,915,966.95 |
| Property tax | 6,877,755.11 | 2,864,691.90 |
| Land using tax | 661,851.40 | 751,644.13 |
| Vehicle usage tax | 14,640.00 | 51,320.40 |
| Stamp tax | 941,023.02 | 1,249,671.01 |
| Land VAT | 9,521,953.79 | 25,705,049.49 |
| Others | 237,493.38 | 237,220.25 |
| Total | 23,203,954.56 | 35,853,693.88 |
46. Sales expense
In RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Labor costs | 11,286,857.24 | 10,473,510.26 |
| Sales agency fee | 2,383,695.88 | 7,400,124.58 |
| Entertainment expense | 1,534,727.49 | 2,041,529.62 |
| Travel expense | 440,012.56 | 793,223.58 |
| Advertisement and promotion fee | 589,409.30 | 716,856.99 |
| Amortization of right of use assets and lease fees | 462,611.74 | 1,297,595.54 |
| Others | 6,598,791.57 | 2,712,074.24 |
| Total | 23,296,105.78 | 25,434,914.81 |
47. Management expense
In RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Labor costs | 51,258,947.78 | 42,525,730.63 |
| Agencies | 2,977,450.48 | 4,747,575.30 |
| Depreciation and amortization | 6,784,107.02 | 4,238,728.47 |
| Office expense | 4,110,000.28 | 3,742,123.03 |
| Entertainment expense | 2,079,903.87 | 2,159,401.56 |
| Amortization of right of use assets and lease fees | 2,678,867.12 | 1,171,537.38 |
| Lawsuit | 239,447.70 | 2,650,332.80 |
| Travel expense | 846,221.42 | 870,897.82 |
| Others | 3,218,305.90 | 7,396,126.94 |
| Total | 74,193,251.57 | 69,502,453.93 |
48. R&D cost
In RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Labor costs | 43,761,777.28 | 47,607,487.83 |
| Material costs | 22,539,028.06 | 23,898,889.12 |
| Agencies | 4,002,025.54 | 3,027,319.72 |
| Depreciation costs | 530,096.72 | 788,799.38 |
| Amortization of intangible assets | 495,249.97 | 507,608.85 |
| Others | 1,481,133.60 | 2,815,489.96 |
| Total | 72,809,311.17 | 78,645,594.86 |
49. Financial expense
In RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Interest expense | 50,244,714.46 | 46,707,567.90 |
| Less: interest capitalization | 3,070,467.85 | |
| Less: discount government subsidies | 308,700.00 | |
| Less: Interest income | 19,918,179.96 | 6,976,161.44 |
| Acceptant discount | 11,494,770.87 | 5,472,503.74 |
| Exchange gain/loss | -3,678,984.41 | 1,703,136.52 |
| Commission charges and others | 1,796,161.92 | 3,000,733.43 |
| Total | 39,629,782.88 | 46,837,312.30 |
50. Other gains
In RMB
| Source | Amount occurred in the current period | Occurred in previous period |
| Government subsidies related to deferred income (related to assets) | 283,322.58 | 206,250.66 |
| Government subsidies related to deferred income (related to income) | 95,060.00 | |
| Government subsidies directly included in current profits and losses (related to income) | 5,945,520.73 | 5,791,459.18 |
| Other items related to daily activities and included in other income | 540,064.44 | 514,288.22 |
| Total | 6,768,907.75 | 6,607,058.06 |
51. Investment income
In RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Gains from long-term equity investment measured by equity | -32,974.15 | -452,893.65 |
| Investment income from trading financial assets | 2,382,310.79 | 2,953,049.83 |
| Financial assets derecognised as a result of amortized cost | -1,859,057.85 | -3,032,899.72 |
| Interest income from debt investment during the holding period | 3,454,345.45 | |
| Others | 651,054.19 | |
| Total | 4,595,678.43 | -532,743.54 |
Others:
During the reporting period, the investment income generated by financial management was RMB2,382,310.79.
52. 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 |
| Transactional financial assets | 133,168.82 | |
| Investment real estate measured at fair value | 1,068,328.60 | |
| Other non-current financial assets | -20,657.41 | 172,829.74 |
| Total | 1,180,840.01 | 172,829.74 |
53. Credit impairment loss
In RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Bad debt loss of other receivables | -1,581,252.49 | 1,139,984.05 |
| Bad debt loss of accounts receivable and notes receivable | 26,597,550.83 | 18,713,432.01 |
| Total | 25,016,298.34 | 19,853,416.06 |
54. Assets impairment loss
In RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Contract asset impairment loss | -27,659,612.75 | 3,466,913.89 |
| Total | -27,659,612.75 | 3,466,913.89 |
55. Assets disposal gains
In RMB
| Source | Amount occurred in the current period | Occurred in previous period |
| Gain and loss from disposal of fixed assets ("-" | -815,581.50 | -2,027,304.03 |
56. Non-business income
In RMB
for loss)
Item
| Item | Amount occurred in the current period | Occurred in previous period | Amount accounted into the current accidental gain/loss |
| Penalty income | 122,506.66 | 195,216.06 | 122,506.66 |
| Payable account not able to be paid | 115,354.80 | 539,817.35 | 115,354.80 |
| Compensation received | 4,887.00 | 36,000.00 | 4,887.00 |
| Others | 203,638.36 | 430,073.05 | 203,638.36 |
| Total | 446,386.82 | 1,201,106.46 | 446,386.82 |
57. Non-business expenses
In RMB
| Item | Amount occurred in the current period | Occurred in previous period | Amount accounted into the current accidental gain/loss |
| Donation | 2,338,000.00 | 3,127,302.00 | 2,338,000.00 |
| Loss from retirement os damaged non-current assets | 159,921.17 | 101,810.29 | 159,921.17 |
| Penalty and overdue fine | 79,324.94 | 54,643.82 | 79,324.94 |
| Others | 755.20 | 196,618.40 | 755.20 |
| Total | 2,578,001.31 | 3,480,374.51 | 2,578,001.31 |
58. Income tax expenses
(1) Details about income tax expense
In RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Income tax expenses in this period | 24,417,052.77 | 9,913,372.73 |
| Deferred income tax expenses | -11,411,931.03 | 4,023,120.93 |
| Total | 13,005,121.74 | 13,936,493.66 |
(2) Adjustment process of accounting profit and income tax expense
In RMB
| Item | Amount occurred in the current period |
| Total profit | 127,369,982.54 |
| Income tax expenses calculated based on the legal (or applicable) tax rates | 31,842,495.63 |
| Impacts of different tax rates applicable for some subsidiaries | -9,525,227.89 |
| Impacts of income tax before adjustment | -313,266.86 |
| Impact of non-taxable income | 0.00 |
| Impacts of non-deductible cost, expense and loss | 638,681.52 |
| Impacts of using deductible loss of unrecognized deferred income tax assets | -582,391.98 |
| Deductible temporary difference and deductible loss of unrecognized deferred income tax assets | 119,682.98 |
| Profit and loss of associates and joint ventures calculated using the equity method | 8,243.54 |
| Taxation impact of R&D expense and (presented with “-”) | -9,183,095.20 |
| Income tax expenses | 13,005,121.74 |
59. Other miscellaneous income
See Note VII 41.
60. Notes to the cash flow statement
(1) Other cash inflow related to operation
In RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Interest income | 1,798,697.05 | 3,844,284.17 |
| Subsidy income | 3,443,499.94 | 2,962,771.94 |
| Retrieving of bidding deposits | 28,957,397.39 | 29,885,356.39 |
| Other operating accounts | 67,415,733.82 | 55,055,405.87 |
| Total | 101,615,328.20 | 91,747,818.37 |
(2) Other cash paid related to operation
In RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Oocket expenses | 18,401,123.38 | 21,856,501.46 |
| Bidding deposit paid | 39,026,573.21 | 15,899,280.00 |
| Net draft deposit net paid | 181,744,397.40 | 144,928,637.13 |
| Other trades | 54,833,967.58 | 9,718,831.22 |
| Total | 294,006,061.57 | 192,403,249.81 |
(3) Other cash paid related to investment activities
In RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Other cash paid for investment | 0.00 | 1,323,355.15 |
| Total | 0.00 | 1,323,355.15 |
(4) Other cash paid related to financing activities
In RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Discounted loan deposits such as bills of exchange and due repayment | 604,311,403.85 | 228,210,000.00 |
| Loan pledged by certificate of deposit | 300,000,000.00 | |
| Repayment of principal and interest of lease liabilities | 5,285,394.85 | 1,150,479.34 |
| Total | 609,596,798.70 | 529,360,479.34 |
61. 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 | 114,364,860.80 | 115,187,470.49 |
| Plus: Asset impairment provision | 2,643,314.41 | -23,320,329.95 |
| Fixed asset depreciation, gas and petrol depreciation, production goods depreciation | 15,224,319.96 | 12,694,795.70 |
| Depreciation of right to use assets | 6,615,143.02 | 2,441,097.81 |
| Amortization of intangible assets | 2,228,550.37 | 2,110,624.27 |
| Amortization of long-term amortizable expenses | 1,578,076.52 | 1,095,936.19 |
| Loss from disposal of fixed assets, intangible assets, and other long-term assets (“-“ for gains) | 815,581.50 | 2,027,304.03 |
| Loss from fixed asset discard (“-“ for gains) | 159,921.17 | 101,810.29 |
| Loss from fair value fluctuation (“-“ for gains) | -1,180,840.01 | -172,829.74 |
| Financial expenses (“-“ for gains) | 61,739,485.33 | 50,128,451.89 |
| Investment losses (“-“ for gains) | -6,454,736.28 | -2,500,156.18 |
| Decrease of deferred income tax asset (“-“ for increase) | -8,571,096.06 | -108,813.53 |
| Increase of deferred income tax asset (“-“ for increase) | -3,012,044.14 | 1,701,067.08 |
| Decrease of inventory (“-“ for increase) | 14,668,390.43 | 63,137,528.73 |
| Decrease of operational receivable items (“-“ for increase) | -293,658,104.04 | 25,896,769.11 |
| Increase of operational receivable items (“-“ for decrease) | -177,019,400.45 | -851,232,377.90 |
| Others | -36,722,215.57 | 99,887,106.71 |
| Cash flow generated by business operations, net | -306,580,793.04 | -500,924,545.00 |
| 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 | 593,918,013.39 | 587,299,086.12 |
| Less: Initial balance of cash | 892,251,071.59 | 1,028,386,529.73 |
| Add: Ending balance of cash equivalents | ||
| Less: Ending balance of cash equivalents | ||
| Net increase in cash and cash equivalents | -298,333,058.20 | -441,087,443.61 |
(2) Composition of cash and cash equivalents
In RMB
| Item | Closing balance | Opening balance |
| I. Cash | 593,918,013.39 | 892,251,071.59 |
| Including: Cash in stock | 791.52 | 3,192.76 |
| Bank savings can be used at any time | 581,005,538.43 | 875,884,674.10 |
| Other monetary capital can be used at any time | 12,911,683.44 | 16,363,204.73 |
| III. Balance of cash and cash equivalents at end of term | 593,918,013.39 | 892,251,071.59 |
62. Assets with restricted ownership or use rights
In RMB
| Item | Closing book value | Reason |
| Monetary capital | 437,397,096.43 | Various deposits |
| Notes receivable | 34,787,478.67 | Bills endorsed or discounted but not yet due |
| Fixed assets | 45,126,026.61 | Loan by pledge |
| Account receivable | 46,114,021.14 | Loan by pledge |
| Investment real estate | 3,303,793,976.13 | Loan by pledge |
| Other non-current assets | 311,792,353.94 | Loan by pledge |
| Equity pledge | 200,000,000.00 | 100% stake in Fangda Property Development held by the Company |
| Total | 4,379,010,952.92 |
63. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
| Item | Closing foreign currency balance | Exchange rate | Closing RMB balance |
| Monetary capital | 94,992,309.10 | ||
| Including: USD | 3,157,223.94 | 6.711400 | 21,189,392.75 |
| Euro | 1,319,925.99 | 7.008400 | 9,250,569.31 |
| HK Dollar | 48,857,539.37 | 0.855190 | 41,782,479.09 |
| INR | 23,962,527.45 | 0.085014 | 2,037,150.31 |
| Vietnamese currency | 203,260,060.00 | 0.000288 | 58,623.11 |
| SGD | 1,553,934.86 | 4.817000 | 7,485,304.22 |
| AUD | 2,858,119.04 | 4.614500 | 13,188,790.31 |
| Account receivable | 13,062,024.95 | ||
| Including: USD | 1,423,544.35 | 6.711400 | 9,553,975.55 |
| AUD | 582,762.90 | 4.614500 | 2,689,159.40 |
| SGD | 170,000.00 | 4.817000 | 818,890.00 |
| Contract assets | 90,661,307.08 |
| Including: USD | 8,884,839.82 | 6.711400 | 59,629,713.97 |
| HK Dollar | 186,368.80 | 0.855190 | 159,380.73 |
| INR | 124,460,153.97 | 0.085014 | 10,580,855.53 |
| AUD | 192,013.05 | 4.614500 | 886,044.22 |
| Euro | 2,768,864.88 | 7.008400 | 19,405,312.62 |
| Other receivables | 4,437,591.53 | ||
| Including: USD | 539,815.34 | 6.711400 | 3,622,916.67 |
| HK Dollar | 413,291.20 | 0.855190 | 353,442.50 |
| INR | 5,121,133.93 | 0.085014 | 435,368.08 |
| AUD | 5,605.00 | 4.614500 | 25,864.27 |
| Account payable | 8,325,030.55 | ||
| Including: USD | 1,178,768.59 | 6.711400 | 7,911,187.51 |
| AUD | 89,683.18 | 4.614500 | 413,843.03 |
| Other payables | 461,799.47 | ||
| Including: USD | 66,453.63 | 6.711400 | 445,996.89 |
| HK Dollar | 100.00 | 0.855190 | 85.52 |
| Vietnamese currency | 54,494,719.00 | 0.000288 | 15,717.06 |
(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
64. 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 |
65. 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 | 1,480,952.90 | Deferred earning | 28,571.40 |
| Distributed PV power generation project subsidy sponsored by Dongguan Reform and Development Commission | 331,250.27 | Deferred earning | 12,499.98 |
| Special subsidy for industrial transformation, upgrading and development | 726,666.63 | Deferred earning | 40,000.02 |
| National Industry Revitalization and Technology Renovation Project fund | 5,224,119.20 | Deferred earning | 153,864.30 |
| Enterprise informationization subsidy project of Shenzhen Small and | 348,000.00 | Deferred | 24,000.00 |
| Medium Enterprise Service Agency | earning | ||
| Energy saving and environmental protection metal curtain wall production technology transformation project | 973,856.20 | Deferred earning | 13,071.90 |
| VAT rebated into revenue | 2,176,755.66 | Other gains | 2,176,755.66 |
| Employment subsidy | 953,585.98 | Other gains | 953,585.98 |
| Discount subsidy | 308,700.00 | Financial expenses | 308,700.00 |
| Dongguan R&D subsidy | 751,800.00 | Other gains | 751,800.00 |
| Funding received from Shenzhen Science and Technology Innovation Commission for the cultivation of high-tech enterprises | 1,000,000.00 | Other gains | 1,000,000.00 |
| Subsidy for Multiplier Support Scheme for National High-tech Enterprises of Nanshan District Science and Technology Innovation Bureau of Shenzhen | 100,000.00 | Other gains | 100,000.00 |
| Hong Kong SAR epidemic subsidy | 142,597.63 | Other gains | 142,597.63 |
| Shanghai Songjiang District Enterprise Technology Center subsidy | 200,000.00 | Other gains | 200,000.00 |
| Others | 637,314.55 | Other gains/deferred gains | 450,271.71 |
| Total | 15,355,599.02 | 6,355,718.58 |
VIII. Change to Consolidation Scope
1. Others
The scope of merger is not changed in the period.IX. Equity in Other Entities
1. Interests in subsidiaries
(1) Group Composition
| Company | Place of business | Registered address | Business | Shareholding percentage | Obtaining method | |
| Direct | Indirect | |||||
| Fangda Jianke | Shenzhen | Shenzhen | Designing, manufacturing, and installation of curtain walls | 98.39% | 1.61% | Incorporation |
| Fangda 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 | Chengdu | Chengdu | Trusted processing of building | 100.00% | Incorpora | |
| Technology | curtain wall materials | tion | ||||
| 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 Software | Shenzhen | Shenzhen | Software development | 83.10% | Incorporation | |
| Fangda Zhichuang 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 | Design, development and sales of cloud rail transport equipment | 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 | |
| Fangda Yunzhu | 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 Zhichuang Technology Dongguan | Dongguan | Dongguan | Production, processing and installation of subway screen doors | 83.10% | Incorporation |
(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% | -24,352.61 | 48,385,412.95 | |
| Fangda Zhiyuan Technology | 5.96% | 1,702,533.65 | 19,624,097.73 |
Others:
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 asset | Non-current assets | Total of assets | Current liabilities | Non-current liabilities | Total liabilities | Current asset | Non-current assets | Total of assets | Current liabilities | Non-current liabilities | Total liabilities | |
| Zhongrong Litai | 208,044,289.05 | 409,573.80 | 208,453,862.85 | 100,625,480.76 | 305,242.20 | 100,930,722.96 | 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 | 759,551,314.56 | 72,475,038.85 | 832,026,353.41 | 482,688,726.25 | 20,074,242.51 | 502,762,968.76 | 725,006,361.40 | 84,470,444.42 | 809,476,805.82 | 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. incomes | Business operation cash flows | Turnover | Net profit | Total of misc. incomes | Business operation cash flows | |
| Zhongrong Litai | 82,951.18 | -54,116.91 | -54,116.91 | -8,017.93 | 201,032.08 | 11,157.19 | 11,157.19 | 16,306.16 |
| Fangda Zhiyuan Technology | 300,269,751.24 | 28,566,000.91 | 28,963,818.88 | -105,649,962.94 | 267,687,038.55 | 48,286,952.27 | 47,707,035.22 | -122,774,779.41 |
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 | |
| Associate: | ||
| Total book value of investment | 55,185,971.99 | 55,218,946.14 |
| Total shareholding | ||
| Net profit | -32,974.15 | -452,893.65 |
| --Total of misc. incomes | -32,974.15 | -452,893.65 |
X. Risks of Financial Tools
The risks associated with the financial instruments of the Company arise from the various financial assets and liabilitiesrecognized by the Company in the course of its operations, including credit risks, liquidity risks and market risks.
The management objectives and policies of various risks related to financial instruments are governed by the managementof the Company. The operating management is responsible for daily risk management through functional departments (forexample, the Company's credit management department reviews the Company's credit sales on a case-by-case basis). The internalaudit department of the Company conducts daily supervision of the implementation of the Company's risk management policiesand procedures, and reports relevant findings to the Company's audit committee in a timely manner.
The overall goal of the Company's risk management is to formulate risk management policies that minimize the risksassociated with various financial instruments without excessively affecting the Company's competitiveness and resilience.
1. Credit risk
Credit risk is caused by the failure of one party of a financial instrument in performing its obligations, causing the risk offinancial loss for the other party. The credit risk of the Company mainly comes from monetary capital, notes receivable, accountsreceivable, other receivables, receivables financing, contract assets, etc. The credit risk of these financial assets comes from thedefault of the counterparties, and the maximum risk exposure is equal to the book amount of these instruments.
The Company's money and funds are mainly deposited in the commercial banks and other financial institutions. TheCompany believes that these commercial banks have higher reputation and asset status and have lower credit risk.
For notes receivable, accounts receivable, other receivables, receivables financing and contract assets, the Company setsrelevant policies to control credit risk exposure. The Group set the credit line and term for debtors according to their financialstatus, external rating, and possibility of getting third-party guarantee, credit record and other factors. The Group regularlymonitors debtors' credit record. For those with poor credit record, the Group will send written payment reminders, shorten orcancel credit term to lower the general credit risk.
(1) Significant increases in credit risk
The credit risk of the financial instrument has not increased significantly since the initial confirmation. In determiningwhether the credit risk has increased significantly since the initial recognition, the Company considers reasonable and evidencedinformation, including forward-looking information, that can be obtained without unnecessary additional costs or effort. TheCompany determines the relative risk of default risk of the financial instrument by comparing the risk of default of the financialinstrument on the balance sheet date with the risk of default on the initial recognition date to assess the credit risk of the financialinstrument from initial recognition.
When one or more of the following quantitative and qualitative criteria are triggered, the Company believes that the creditrisk of financial instruments has increased significantly: the quantitative criteria are mainly the probability of default in theremaining life of the reporting date increased by more than a certain proportion compared with the initial recognition; thequalitative criteria are the major adverse changes in the operation or financial situation of the major debtors, the early warning ofcustomer list, etc.
(2) Definition of assets where credit impairment has occurred
In order to determine whether or not credit impairment occurs, the standard adopted by our company is consistent with thecredit risk management target for related financial instruments, and quantitative and qualitative indicators are considered.
Major financial difficulties have occurred to the issuer or the debtor; Breach of contract by the debtor, such as payment 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.
Credit impairment in financial assets may be caused by a combination of multiple events, not necessarily by events thatcan be identified separately.
(3) Expected credit loss measurement
Depending on whether there is a significant increase in credit risk and whether a credit impairment has occurred, theCompany prepares different assets for a 12-month or full expected credit loss. The key parameters of expected credit lossmeasurement include default probability, default loss rate and default risk exposure. Taking into account the quantitative analysisand forward-looking information of historical statistics (such as counterparty ratings, guaranty methods, collateral categories,repayment methods, etc.), the Company establishes the default probability, default loss rate and default risk exposure model.Definition:
The probability of default refers to the possibility that the debtor will not be able to fulfil its obligation to pay in the next 12months or throughout the remaining period.
Breach Loss Rate means the extent of loss expected by the Company for breach risk exposure. Depending on the type ofcounterparty, the manner and priority of recourse, and the different collateral, the default loss rate is also different. The default lossrate 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 entirelifetime.
Exposure to default is the amount payable to the Company at the time of default in the next 12 months or throughout theremaining life. Prospective information credit risks significantly increased and expected credit losses were calculated. Through theanalysis of historical data, the Company has identified the key economic indexes that affect the credit risk of each business typeand the expected credit loss.
The largest credit risk facing the Group is the book value of each financial asset on the balance sheet. The Group makes noguarantee that may cause the Group credit risks.
Among the Group’s receivables, accounts receivable from top 5 customers account for 28.57% of the total accountsreceivable (beginning of the period: 25.47%); among other receivables, other receivables from top 5 customers account for 63.91%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 other financial assets. The Companyis responsible for the cash management of its subsidiaries, including short-term investments in cash surpluses and loans to meetprojected cash requirements. The Company's policy is to regularly monitor short and long-term liquidity requirements andcompliance with borrowing agreements to ensure adequate cash reserves and readily available securities.As of June 30, 2022, the maturity of the Company's financial liabilities is as follows:
Amount: in RMB10,000
| Item | June 30, 2022 | |||
| Less than 1 year | Within 1-3 years | Over 3 years | Total | |
| Short-term loans | 162,289.11 | 162,289.11 | ||
| Derivative financial liabilities | 184.07 | 184.07 | ||
| Notes payable | 72,969.31 | 72,969.31 | ||
| Account payable | 123,914.67 | 5,650.10 | 198.14 | 129,762.91 |
| Employees' wage payable | 3,275.03 | 3,275.03 | ||
| Other payables | 7,455.22 | 639.31 | 3,332.69 | 11,427.23 |
| Non-current liabilities due in 1 year | 8,192.25 | 8,192.25 | ||
| Other current liabilities | 5,854.61 | 5,854.61 | ||
| Long-term loans | 21,150.00 | 108,700.00 | 129,850.00 | |
Lease liabilities
| Lease liabilities | 1,583.18 | 0.56 | 1,583.74 | |
| Long-term payable | 19,064.02 | 19,064.02 | ||
| Total liabilities | 384,134.27 | 48,086.61 | 112,231.39 | 544,452.28 |
Continued
| December 31, 2021 | ||||
| Item | 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 payable | 18,364.02 | 18,364.02 | ||
| 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 and its subsidiaries inforeign currency not denominated in its functional currency. Except for the use of Hong Kong dollars, United States dollars,Australian dollars, Vietnamese dong, euro, Indian rupees or Singapore currencies by its subsidiaries established in and outside theHong Kong Special Administrative Region, other major businesses of the Company shall be denominated in Renminbi.As of June 30, 2022, the Company's foreign currency financial assets and liabilities at the end of the period are listed inChapter X, VII, item note 63 of consolidated financial statements and description of foreign currency monetary items.The Company pays close attention to the impact of exchange rate changes on the Company's exchange rate risk. TheCompany continuously monitors the scale of foreign currency transactions and foreign currency assets and liabilities to minimizeforeign exchange risks. To this end, the Company may avoid foreign exchange risks by signing forward foreign exchangecontracts or currency swap contracts.
(2) Exchange rate risk
The Group's interest rate risk mainly arises from long-term interest-bearing debts such as long-term bank loans. Financialliabilities with floating interest rate cause cash flow interest rate risk for the Group. Financial liabilities with fixed interest ratecause fair value interest rate risk for the Group. The Group decides the proportion between fixed interest rate and floating interestrate according to the market environment and regularly reviews and monitors the combination of fixed and floating interest rateinstruments.
The Group Finance Department of the Company continuously monitors the Group interest rate level. The rising interest ratewill increase the cost of the new interest-bearing debt and the interest expenditure on interest-bearing debt which has not yet beenpaid by the Company at the floating rate, and will have a significant adverse effect on the Company's financial performance.Management will make adjustments in time according to the latest market conditions.
As of June 30, 2022, if the loan interest rate calculated by floating interest rate increases or decreases by 50 basis pointswhile other risk variables remain unchanged, the net profit of the Company in the current year will decrease or increase byRMB6,256,900 (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 | 1,768,884.99 | 32,133,168.82 | 33,902,053.81 | |
| 1. Financial assets measured at fair value with variations | 1,768,884.99 | 32,133,168.82 | 33,902,053.81 | |
| accounted into current income account | ||||
| (1) Derivative financial assets | 1,768,884.99 | 1,768,884.99 | ||
| (2) Investment of financial products | 32,133,168.82 | 32,133,168.82 | ||
| (2) Receivable financing | 19,031,714.87 | 19,031,714.87 | ||
| (3) Investment in other equity tools | 14,180,652.65 | 14,180,652.65 | ||
| (4) Investment real estate | 5,753,349,305.19 | 5,753,349,305.19 | ||
| 1. Leased building | 5,753,349,305.19 | 5,753,349,305.19 | ||
| (5) Other non-current financial assets | 7,504,750.83 | 7,504,750.83 | ||
| Total assets measured at fair value continuously | 1,768,884.99 | 5,753,349,305.19 | 72,850,287.17 | 5,827,968,477.35 |
| (6) Transactional financial liabilities | 1,840,691.89 | 1,840,691.89 | ||
| 1. Derivative financial liabilities | 1,840,691.89 | 1,840,691.89 | ||
| Total assets measured at fair value continuously | 1,840,691.89 | 1,840,691.89 | ||
| 2. Discontinuous fair value measurement | -- | -- | -- | -- |
2. Recognition basis of market value of continuous and discontinuous items measured at first level fairvalueThe Group determines the fair value using quotation in an active market for financial instruments traded in an active market;
3. Valuation technique and qualitative and quantitative information for key parameters of continuousand discontinuous second level fair value itemsFor investment real estate, the Company adopts valuation technology to determine its fair value. The valuation techniques adoptedare mainly the market comparison method and the income method, and the rent and resale model. The input value of valuationtechnology 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 items
If there is no active market, the Company uses evaluation techniques to determine the fair value. The valuation models are mainlycash flow discount model and market comparable company model. The input value of valuation technology mainly includes risk-free interest rate, benchmark interest rate, exchange rate, credit point difference, liquidity premium, lack of liquidity discount, etc.
5. Continuous third level fair value measurement items, adjustment information between opening andclosing book values and sensitivity analysis of unobservable parameters
The Company takes the occurrence date of the events leading to the transition between levels as the time point to confirm thetransition between levels. In the period, there is no switch in the financial assets measured at fair value between the first andsecond level or transfer in or out of the third level.
6. Switch between different levels, switch reason and switching time policy
Financial assets and liabilities measured at amortized cost include: monetary capital, bills receivable, accounts receivable, otherreceivables, short-term borrowings, notes payable, employee compensation payable, accounts payables, other payables, and long-term payables.XII. Related Parties and Transactions
1. Parent of the Company
| 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
①All 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％ shares, and Mr. Xiong Xi – son of Mr. Xiong Jianming,is holding 15% of the shares.
② Among the top 10 shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu Investment Co., Ltd. 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 |
| Shenzhen Mingjiu Investment Co., Ltd | Common actual controller |
| Shenzhen Yingxiang Investment Co., Ltd | Company with significant influence of actual controllers |
| 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 | 112,319.60 | 59,376.04 |
(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 | 434,285.70 | 482,580.65 |
(3) Related guarantees
The Company is the guarantor:
In RMB
| Beneficiary party | Amount guaranteed | Start date | Due date | Completed or not |
| Fangda Jianke | 500,000,000.00 | July 27, 2021 | June 1, 2023 | No |
| Fangda Jianke | 600,000,000.00 | December 21, 2021 | December 21, 2022 | No |
| Fangda Jianke | 240,000,000.00 | March 9, 2022 | March 2, 2023 | No |
| Fangda Jianke | 250,000,000.00 | November 17, 2021 | November 16, 2022 | No |
| Fangda Jiangxi New Material | 100,000,000.00 | April 20, 2022 | April 19, 2023 | No |
| Fangda Jianke | 150,000,000.00 | May 23, 2022 | May 7, 2024 | No |
| Fangda Zhijian | 70,000,000.00 | June 1, 2022 | June 15, 2024 | No |
| Fangda Jianke | 300,000,000.00 | March 17, 2021 | February 17, 2022 | Yes |
| Fangda Jianke | 300,000,000.00 | January 29, 2021 | January 28, 2022 | No |
| Fangda Jianke | 400,000,000.00 | September 18, 2022 | September 05, 2022 | No |
| Fangda Jianke | 300,000,000.00 | August 18, 2021 | August 17, 2022 | No |
| Fangda Jianke | 150,000,000.00 | April 10, 2020 | March 18, 2022 | Yes |
| Fangda Jianke | 480,000,000.00 | December 17, 2021 | December 16, 2022 | No |
| Fangda Zhiyuan Technology | 400,000,000.00 | July 7, 2021 | July 6, 2022 | No |
| Fangda Zhiyuan Technology | 150,000,000.00 | March 9, 2022 | March 2, 2023 | No |
| Fangda Zhiyuan Technology | 150,000,000.00 | March 31, 2021 | February 17, 2022 | Yes |
| Fangda Zhiyuan | 200,000,000.00 | January 29, 2021 | January 28, 2022 | No |
| Technology | ||||
| Fangda Zhiyuan Technology | 150,000,000.00 | September 28, 2021 | September 02, 2022 | No |
| Fangda Zhiyuan Technology | 100,000,000.00 | April 10, 2020 | March 18, 2022 | Yes |
| Fangda Zhiyuan Technology | 100,000,000.00 | May 23, 2022 | May 7, 2024 | No |
| Fangda Zhiyuan Technology | 50,000,000.00 | August 12, 2021 | August 7, 2022 | No |
| Fangda Yunzhu | 6,000,000.00 | May 10, 2022 | April 1, 2023 | No |
| Kechuangyuan Software | 10,000,000.00 | September 30, 2021 | September 30, 2022 | No |
| Fangda Jiangxi New Material | 65,000,000.00 | July 30, 2021 | July 29, 2022 | No |
| Fangda Jiangxi New Material | 100,000,000.00 | May 26, 2021 | April 12, 2022 | Yes |
| Fangda Property | 1,350,000,000.00 | February 25, 2020 | February 24, 2030 | No |
| Fangda Property | 470,000,000.00 | December 16, 2020 | December 16, 2030 | No |
| Fangda Zhijian | 35,000,000.00 | June 3, 2021 | March 18, 2023 | Yes |
| Fangda Jianke and Fangda Zhiyuan Technology | 140,000,000.00 | December 18, 2019 | For details, please refer to the following description of related party guarantee (2) | No |
Note to related guaranteesThe above-mentioned guarantees are all associated guarantees within interested entities of the Company.
① HSBC has a total credit of RMB 90 million to the Company, Fangda Jianke and Fangda Zhiyuan Technology and has not yetagreed on the credit expiration date. HSBC regularly evaluates the credit status. The restriction on the use of the credit is asfollows:
The Company can use non-financial bank guarantees of up to RMB140 million to grant credit;Fangda Jianke has non-committed combined revolving credits of not more than RMB90 million including revolving loans ofup to RMB90 million, non-financial bank guarantees of up to RMB90 million and bank acceptances of up to RMB90 million.Fangda Zhiyuan Technology has non-committed combined revolving credits of not more than RMB140 million includingrevolving loans of up to RMB50 million, non-financial bank guarantees of up to RMB140 million and bank acceptances of up toRMB140 million.
(4) Remuneration of key management
In RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Directors, supervisors and senior management | 4,289,505.05 | 4,157,864.33 |
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 | 4,403.43 | 44.03 | 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 | 75,821.79 | 3,791,089.25 | 56,487.23 |
| Other receivables | Shenzhen Yikang Real Estate Co. Ltd. | 70,062,675.83 | 1,401,253.52 | 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. | 25,251,147.71 | 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 day
On November 6, 2017, Fangda Real Estate Co., Ltd., a subsidiary of the Company, and Bangshen Electronics (Shenzhen)Co., Ltd. signed the “Joint Development Agreement on Fangda Bangshen Industrial Park (Temporary Name) Urban RenewalProject”, and the two parties agreed to develop cooperatively. In order to develop urban renewing projects such as a “renovationproject”, Fangda Real Estate provided Party A with property compensation through renovating and renovating the propertyallocation terms agreed upon by both parties, and obtained independent development rights of the project. As of June 30, 2022,Fangda Real Estate has paid a deposit of RMB20 million.
(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 June 30, 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.
(3) In May 2021, the subsidiaries Fangda Jianke and Fangda Jiangxi New Material transferred 10.9375% of the total equityof Fangda Zhichuang Technology, with a transfer amount of RMB175 million. The agreement also stipulates that if FangdaZhiyuan Technology fails to start and complete the qualified listing before May 31, 2025, the transferee has the right to requireFangda Jianke and Fangda Jiangxi New Material to repurchase or transfer all or part of the equity of Fangda Zhiyuan Technologyheld by the transferee.
As of June 30, 2022, the Company did not have other commitments that should be disclosed.
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 RMB13,920,000.70, 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 September 2021, Fangda Jianke sued Qianhai Junlin Industrial Development (Shenzhen) Co., Ltd. and EvergrandeReal Estate Group (Shenzhen) Co., Ltd. for paying RMB7096421.00 yuan of project payment and overdue interest, and claimedthe priority 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 not yet takeneffect.
③ In 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. TheZhuhai International Arbitration Court accepted the case on October 26, 2021, with the case number of zzz (2021) No. 698. InJanuary 2022, Fangda Jianke reached a settlement with Zhuhai R&F Real Estate Co., Ltd., signed a settlement agreement, andsigned a housing mortgage agreement with the third party Hengxin International Optical Industry Co., Ltd. after the settlement,R&F paid RMB652,248.97 for the project; In May 2022, due to the failure of R&F and Hengxin to perform the house arrivalagreement, Fangda Jianke filed an arbitration again, demanding payment of the remaining project funds and interests totalingRMB11,633,903.96. Zhuhai International Arbitration Court accepted the case in May 2022, with the case number of ZZCZ (2022)No. 283, and the hearing was completed on July 25, 2022. As of the disclosure date of this report, no ruling has been issued in thiscase.
④ 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.
(2) Pending major lawsuits
On 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 theverdict 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.
On November 15, 2019, The people's Court of Chenghua District of Chengdu made a judgment (2019)川0108民初428号that Sichuan Chuanta Hengyuan Industrial Co., Ltd. shall pay interest to the Company within ten days from the date of thejudgment (based on RMB6,013,841.23, from May 29, 2015 to the date of payment; based on RMB841,876.32, from May 28, 2015to the date of payment; based on RMB841,876.32, from May 28, 2016 to the date of payment). The company has priority right to
be paid for the discounted or auctioned price of project C of Sichuan Tower Project (Television Culture Plaza) within the scope of7,697,4#*@$ Yuan. As of the date of this report, Fangda Jianke has not received relevant funds.In 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.
In 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, FangdaJianke has applied for execution and has not received the relevant funds. In the future, it will promote the judicial auction of theseized assets and prepare for bankruptcy application.
(3) Contingent liabilities formed by providing of guarantee to other companies' debts and their influences on financialsituationBy June 30, 2022, the Company has provided loan guarantees for the following entities:
| Name of guaranteed entity | Guarantee | Amount (in RMB10,000) | Term |
| Fangda Property | Guarantee and mortgage guarantee | 91,000.00 | 2020/2/25-2030/02/24 |
| Fangda Property | Guarantee | 45,850.00 | 2021/03/18-2031/03/18 |
| Kechuangyuan Software | Guarantee | 1,000.00 | 2021/09/30-2022/09/30 |
| Fangda Zhiyuan Technology | Guarantee | 5,000.00 | 2021/08/12-2022/08/07 |
| Fangda Jianke | Guarantee | 3,000.00 | 2022/06/01-2023/06/01 |
| Fangda Jianke | Guarantee | 5,000.00 | 2022/03/17-2023/03/26 |
Notes:
① Contingent liabilities caused by guarantees provided for other entities are all related guarantees between interested entitiesin 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 June 30, 2022, the Company has undertaken the above phased guarantee amount ofRMB35,265,600.
(4) Other contingent liabilities and their influences
As of June 30, 2022, the Company has no other contingencies to be disclosed.
3. Others
As of June 30, 2022, the Company has not revoked the letter of guarantee:
| Currency | Guarantee balance (original currency) | Deposit (RMB) | Credit line used (RMB) |
| RMB yuan | 777,924,532.56 | - | 777,924,532.56 |
| INR | 87,107,132.78 | 495,801.30 | 6,909,437.38 |
| HKD (HKD) | 15,349,982.00 | 15,000,000.00 | - |
| United States Dollar (USD) | 7,455,636.33 | 4,028,154.76 | 46,009,602.91 |
| SGD | 2,700,000.00 | - | 13,005,900.00 |
| Euro (EUR) | 3,771,764.01 | 26,434,030.89 | |
| Total | 894,309,047.68 | 19,523,956.06 | 870,283,503.73 |
XIV. Post-balance-sheet events
1. 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 August 26, 2022(report date approved by the Board of Directors).XV. Other material events
1. Segment information
(1) Recognition basis and accounting policy for segment report
The Group divides its businesses into five reporting segments. The reporting segments are determined based on financialinformation required by routine internal management. The Group's management regularly review the operating results of thereporting segments to determine resource distribution and evaluate their performance.The reporting segments are:
(1) Curtain wall segment, production and sales of curtain wall materials, construction curtain wall design, production andinstallation;
(2) Rail transport segment: assembly and processing of metro screen doors;
(3) Real estate segment: development and operating of real estate on land of which land use right is legally obtained by theCompany; property management;
(4) New energy segment: photovoltaic power generation, photovoltaic power plant sales, photovoltaic equipment R & D,installation, and sales, and photovoltaic power plant engineering design and installation
(5) Others
The segment report information is disclosed based on the accounting policies and measurement standards used by thesegments when reporting to the management. The policies and standards should be consistent with those used in preparing thefinancial statement.
(2) Financial information
In RMB
| Item | Curtain wall | Rail transport | Real estate | New energy | Others | Offset between segments | Total |
| Turnover | 1,152,781,762.78 | 300,269,751.24 | 148,989,153.73 | 8,501,022.57 | 14,705,232.50 | 12,183,607.52 | 1,613,063,315.30 |
| Including: external transaction income | 1,150,768,372.43 | 300,269,751.24 | 144,893,896.06 | 8,159,691.65 | 8,971,603.92 | 1,613,063,315.30 | |
| Inter-segment transaction income | 2,013,390.34 | 4,095,257.66 | 341,330.92 | 5,733,628.59 | 12,183,607.52 | 0.00 | |
| Including: major business turnover | 1,134,030,357.71 | 300,180,875.13 | 83,384,432.54 | 8,501,022.57 | 0.00 | 2,440,404.34 | 1,523,656,283.61 |
| Operating cost | 970,969,416.01 | 237,515,394.89 | 50,269,160.81 | 3,793,584.03 | 418,824.01 | 3,450,537.15 | 1,259,515,842.60 |
| Including: major business cost | 962,083,811.64 | 237,493,707.69 | 38,732,091.98 | 3,793,584.03 | 0.00 | 3,405,218.57 | 1,238,697,976.76 |
| Operation cost | 116,197,848.20 | 30,778,786.10 | 51,885,075.42 | 1,536,836.84 | 17,727,940.93 | -5,919,388.18 | 224,045,875.67 |
| Operating profit/(loss) | 65,614,498.57 | 31,975,570.25 | 46,834,917.49 | 3,170,601.70 | -3,441,532.44 | 14,652,458.55 | 129,501,597.03 |
| Total assets | 5,241,241,275.43 | 832,026,353.41 | 6,426,315,246.85 | 922,267,287.00 | 3,732,426,885.84 | 4,742,771,266.13 | 12,411,505,782.40 |
| Total liabilities | 3,609,633,890.15 | 502,762,968.76 | 3,735,917,549.65 | 812,657,687.52 | 1,388,459,854.39 | 3,289,375,400.53 | 6,760,056,549.94 |
Note: The financial information of the reportable segment should be disclosed in conjunction with thecompany's specific conditions including information on the main business income and the cost of the mainbusiness.
(3) Others
Since more than 90% of the Group's revenue comes from Chinese customer and 90% of the Group's assets are in China, nodetailed regional information is needed.
XVI. 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 | 811,162.00 | 100.00% | 20,387.35 | 2.51% | 790,774.65 | 595,366.68 | 100.00% | 9,430.38 | 1.58% | 585,936.30 |
| Including: | ||||||||||
| Portfolio 3. Others | 811,162.00 | 100.00% | 20,387.35 | 2.51% | 790,774.65 | 595,366.68 | 100.00% | 9,430.38 | 1.58% | 585,936.30 |
| Total | 811,162.00 | 100.00% | 20,387.35 | 2.51% | 790,774.65 | 595,366.68 | 100.00% | 9,430.38 | 1.58% | 585,936.30 |
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 | 440,052.00 | 3,212.38 | 0.73% |
| 1-2 years | 222,666.00 | 4,675.99 | 2.10% |
| 2-3 years | 148,444.00 | 12,498.98 | 8.42% |
| Total | 811,162.00 | 20,387.35 | |
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 | Closing balance |
| Within 1 year (inclusive) | 440,052.00 |
| 1-2 years | 222,666.00 |
| 2-3 years | 148,444.00 |
| Total | 811,162.00 |
(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 | Canceled | Others | |||
| recovered | ||||||
| Portfolio 3. Others | 9,430.38 | 10,956.97 | 20,387.35 | |||
| Total | 9,430.38 | 10,956.97 | 20,387.35 |
(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 | 751,933.30 | 92.70% | 19,954.98 |
| Total | 751,933.30 | 92.70% |
2. Other receivables
In RMB
| Item | Closing balance | Opening balance |
| Other receivables | 1,821,626,998.78 | 1,276,731,665.95 |
| Total | 1,821,626,998.78 | 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 | 12,992,291.48 | 12,992,291.48 |
| Others | 114,964.87 | 120,143.89 |
| Accounts between related parties within the scope of consolidation | 1,821,408,667.12 | 1,276,507,096.22 |
| Total | 1,834,666,623.01 | 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 | 1,059.05 | 1,059.05 | ||
| Balance on June 30, 2022 | 4,455.75 | 13,035,168.48 | 13,039,624.23 |
Changes in book balances with significant changes in the current period
□ Applicable ? Inapplicable
Account age
In RMB
| Age | Closing balance |
| Within 1 year (inclusive) | 1,821,631,454.53 |
| Over 3 years | 13,035,168.48 |
| 3-4 years | 0.00 |
| 4-5 years | 42,877.00 |
| Over 5 years | 12,992,291.48 |
| Total | 1,834,666,623.01 |
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 | 1,059.05 | 13,039,624.23 | |||
| Total | 13,038,565.18 | 1,059.05 | 13,039,624.23 | |||
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 | 930,462,523.45 | Less than 1 year | 51.08% | 0.00 |
| Fangda Dongguan New Material | Affiliated party payment | 358,077,558.80 | Less than 1 year | 19.66% | 0.00 |
| Fangda Jiangxi Property Development | Affiliated party payment | 208,139,038.54 | Less than 1 year | 11.42% | 0.00 |
| Fangda Jianke | Affiliated party payment | 205,841,633.15 | Less than 1 year | 11.30% | 0.00 |
| Fangda Hongjun Investment | Affiliated party payment | 88,385,280.00 | Less than 1 year | 4.85% | 0.00 |
| Total | 1,790,906,033.94 | 98.31% | 0.00 |
3. Long-term share equity investment
In RMB
| Item | Closing balance | Opening balance | ||||
| Remaining book value | Impairment provision | Book value | Remaining book value | Impairment provision | Book value | |
| Investment in subsidiaries | 1,196,831,253.00 | 1,196,831,253.00 | 1,196,831,253.00 | 1,196,831,253.00 | ||
| Total | 1,196,831,253.00 | 1,196,831,253.00 | 1,196,831,253.00 | 1,196,831,253.00 | ||
(1) Investment in subsidiaries
In RMB
| Invested entity | Opening book value | Change (+,-) | Closing book value | Balance of impairment provision at the end of the period | |||
| Increased investment | Decreased investment | Impairment provision | Others | ||||
| Fangda Jianke | 491,950,000.00 | 491,950,000.00 | |||||
| Fangda Jiangxi New Material | 74,496,600.00 | 74,496,600.00 | |||||
| Fangda Property | 198,000,000.00 | 198,000,000.00 | |||||
| Shihui International | 61,653.00 | 61,653.00 | |||||
| Fangda New Energy | 99,000,000.00 | 99,000,000.00 | |||||
| Fangda Hongjun Investment | 98,000,000.00 | 98,000,000.00 | |||||
| Fangda Investment | 235,323,000.00 | 235,323,000.00 | |||||
| Total | 1,196,831,253.00 | 1,196,831,253.00 | |||||
4. Operational revenue and costs
In RMB
| Item | Amount occurred in the current period | Occurred in previous period | ||
| Income | Cost | Income | Cost | |
| Other businesses | 14,705,232.50 | 418,824.01 | 12,068,999.58 | 89,904.13 |
| Total | 14,705,232.50 | 418,824.01 | 12,068,999.58 | 89,904.13 |
Income information:
In RMB
| Contract classification | Segment 1 - other segments | Total |
| Including: | ||
| Other businesses | 14,705,232.50 | 14,705,232.50 |
| Total | 14,705,232.50 | 14,705,232.50 |
Information related to performance obligations:
Information related to performance obligations:
Information related to the transaction price allocated to the remaining performance obligations:
The amount of revenue corresponding to the performance obligations that have been signed, but not yet performed or not yetperformed at the end of the reporting period is RMB27,691,651.94, of which RMB12,889,648.98 is expected to be recognized in2022, and RMB8,412,900.45 is expected to be recognized in 2023, RMB6,389,102.51 is expected to be recognized in 2024 andbeyond.
5. Investment income
In RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Gains from long-term equity investment measured by costs | 33,660,000.00 | |
| Investment gain of financial products | 431,992.15 | 316,138.71 |
| Total | 431,992.15 | 33,976,138.71 |
XVII. Supplementary Materials
1. Detailed accidental gain/loss
? Applicable □ Inapplicable
In RMB
| Item | Amount | Notes |
| Gain/loss of non-current assets | -815,581.50 | |
| 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. | 4,734,557.71 | |
| Capital using expense charged to non-financial enterprises and accounted into the current income account | 3,454,345.45 | |
| 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 | 3,145,876.39 | |
| Gain/loss from change of fair value of investment property measured at fair value in follow-up measurement | 1,068,328.60 | |
| Other non-business income and expenditures other than the above | -2,131,614.49 | |
| Less: Influenced amount of income tax | 1,815,756.39 | |
| Influenced amount of minority shareholders' equity | 72,457.02 | |
| Total | 7,567,698.75 | -- |
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
2. Net income on asset ratio and earning per share
| Profit of the report period | Weighted average net income/asset ratio | Earning per share | |
| Basic earnings per share (yuan/share) | Diluted Earnings per share (yuan/share) | ||
| Net profit attributable to common shareholders of the Company | 2.03% | 0.10 | 0.10 |
| Net profit attributable to the common owners of the PLC after deducting of non-recurring gains/losses | 1.89% | 0.10 | 0.10 |
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profits and assets in financial statements disclosed according to the internationaland Chinese account standards
□ Applicable ? Inapplicable
(2) Differences in net profits and assets in financial statements disclosed according to the internationaland Chinese account standards
□ Applicable ? Inapplicable
(3) Differences in financial data using domestic and foreign accounting standards, the overseas institutionname should be specified if the difference in data audited by an overseas auditor is adjustedNone