China Fangda Group Co., Ltd.
2019 Interim Report
August 2019
Chapter 1 Important Statement, Table of Contents and DefinitionsThe members of the Board and the Company guarantee that the interimreport is free from any false information, misleading statement or materialomission and are jointly and severally liable for the information’s truthfulness,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 attention toinvestment 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 4 Operation Discussion and Analysis.
The Company will distribute no cash dividends or bonus shares and has noreserve capitalization plan.
Table of Contents
Chapter 1 Important Statement, Table of Contents and Definitions ...... 2
Chapter 2 About the Company and Financial Highlights ...... 6
Chapter 3 Business Introduction ...... 10
Chapter 4 Operation Discussion and Analysis ...... 15
Chapter 5 Significant Events ...... 28
Chapter 6 Changes in Share Capital and Shareholders ...... 36
Chapter 7 Preferred Shares ...... 41
Chapter 8 Particulars about the Directors, Supervisors, and Senior Management ...... 42
Chapter 9 Information about the Company’s Securities ...... 43
Chapter 10 Financial Statements ...... 44
Chapter 11 Documents for Reference ...... 174
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 Co. | 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 Zhichuang | Refers to | Fangda Zhichuang Science and Technology Co., Ltd. |
| Fangda 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. |
| Zhongrong Litai | Refers to | Shenzhen Zhongrong Litai Investment Co., Ltd. |
| Chengdu Fangda Jianke | Refers to | Chengda Fangda Construction Technology Co., Ltd. |
| Dongguan Fangda New Material | Refers | Dongguan Fangda New Material Co., Ltd. |
| to | ||
| Kechuangyuan Software | Refers to | Shenzhen Qianhai Kechuangyuan Software Co., Ltd. |
| Kexunda Co. | Refers to | Shenzhen Kexunda Software Co., Ltd. |
| Fangda Property | Refers to | Shenzhen Fangda Property Management Co., Ltd. |
| Jiangxi Property | Refers to | Fangda (Jiangxi) Property Development Co., Ltd. |
| Hongjun Investment Company | Refers to | Shenzhen Hongjun Investment Co., Ltd. |
| Fangda Qingling | Refers to | Shanghai Fangda Qingling Technology Co., Ltd. |
| Fangda Cloud Rail | Refers to | Shenzhen Fangda Cloud Rail Technology Co., Ltd. |
| Jianke Australia | Refers to | Fangda Australia Pty Ltd |
| Fangda Southeast Asia | Refers to | Fangda Southeast Asia Company Limited |
| Zhichuang Hong Kong | Refers to | Fangda Zhichuang Science and Technology (Hong Kong) Co., Ltd. |
| Shihui International | Refers to | Shihui International Holding Co., Ltd. |
| Shenyang Fangda | Refers to | Shenyang Fangda Semi-conductor Lighting Co., Ltd. |
| Shenzhen Woke | Refers to | Shenzhen Woke Semi-conductor Lighting 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 (if any) | None | ||
| Stock Exchange | Shenzhen Stock Exchange | ||
| Chinese name | China Fangda Group Co., Ltd. | ||
| English name (if any) | Fangda Group | ||
| English name (if any) | CHINA FANGDA GROUP CO., LTD. | ||
| English abbreviation (if any) | CFGC | ||
| Legal representative | Xiong Jianming | ||
2. Contacts and liaisons
| Secretary of the Board | Representative of Stock Affairs | |
| Name | Zhou Zhigang | Guo Linchen |
| Address | 20F, Fangda Technology Building, Kejinan 12th Avenue, High-tech Zone, Hi-tech Park South Zone, Shenzhen, PR China. | 20F, Fangda Technology Building, Kejinan 12th Avenue, High-tech Zone, Hi-tech Park South Zone, Shenzhen, PR China. |
| Tel. | 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 2018 for details.
2. Information disclosure and inquiring
Changes to the information disclosure and inquiring place
□ Applicable √ Inapplicable
Please refer to the 2018 annual report for the newspapers and websites where the Company’s information is disclosed. The inquiry
address of the interim report has remained unchanged during the report period.
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) | 1,425,890,946.99 | 1,442,050,896.53 | -1.12% |
| Net profit attributable to shareholders of the listed company (yuan) | 128,581,755.01 | 230,131,663.19 | -44.13% |
| Net profit attributable to the shareholders of the listed company and after deducting of non-recurring gain/loss (RMB) | 113,377,064.06 | 209,705,118.34 | -45.94% |
| Net cash flow generated by business operation (RMB) | -372,725,003.11 | -31,426,267.64 | -1,086.03% |
| Basic earnings per share (yuan/share) | 0.11 | 0.19 | -42.11% |
| Diluted Earnings per share (yuan/share) | 0.11 | 0.19 | -42.11% |
| Weighted average net income/asset ratio | 2.55% | 6.99% | -4.44% |
| End of the report period | End of last year | Year-on-year change | |
| Total asset (RMB) | 10,940,802,780.45 | 10,658,854,133.73 | 2.65% |
| Net profit attributable to the shareholders of the listed company (RMB) | 5,023,788,122.76 | 5,195,187,621.88 | -3.30% |
Notes:
1. The above-mentioned decrease in ―net profit attributable to shareholders of the listed company‖ was mainly due to the fact thatthe Fangda Town project which had a higher gross profit during the reporting period and contributed more to the profit in theprevious year, was nearing the end of the planned sales area resulting in a decrease in operating income and profit. In addition, theoperating income, net profit and gross profit margin of the curtain wall systems and materials industries and rail transit screen doorequipment businesses have increased, as follows:
1. The real estate industry realized operating income of RMB204,754,300 in the first quarter of 2019, a decrease of 57.03% overthe same period of the previous year; net profit of RMB55,294,600 was reduced by RMB113,516,400 compared with the sameperiod of the previous year with a decrease of 67.24%.
2. In the first quarter of 2019, the curtain wall system and materials industry realized operating income of RMB1,005,451,500, anincrease of 23.53% over the same period of the previous year; the net profit was RMB48,390,900, an increase of 33%; the grossmargin was 14.55%, up 0.67 percentages from the same period of last year;
3. In the first half of 2019, the rail transit screen door equipment business realized operating income of RMB197,936,300, anincrease of 50.79% over the same period of the previous year; net profit of RMB35,630,100, an increase of 68.76% over the sameperiod of the previous year; gross profit margin of 28.00%, an increase of 4.67 percentage points.
2. The decrease in the above-mentioned ―net cash flow from operating activities‖ was mainly due to the decrease in the revenue ofthe Fangda town project due to the decrease in operating income during the reporting period and the annual corporate income taxsettlement and payment of taxes. The curtain wall system and materials industry and the rail transit screen door equipment
industry have basically remained the same or improved compared with the same period of the previous year, as follows:
1. The net cash flow generated by the real estate industry in the first half of 2019 was RMB-181,979,600, compared withRMB182,350,800 in the same period of the previous year, a decrease of RMB364,330,400 over the same period of the previous year.
2. The net cash flow generated by the operating activities of the curtain wall system and materials industry in the first half of 2019was RMB -157,339,500, compared with RMB-156,697,800 in the same period of last year, which was basically the same as that ofthe same period of last year;
3. The net cash flow generated by the operating activities of the rail transit screen door equipment industry in the first half of 2019
was RMB-33,676,200, compared with RMB-47,830,600 in the same period of last year, which was improved compared with the
same period of the previous year.
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) | -27,108.78 | |
| Subsidies accounted into the current income account (except the government subsidy closely related to the enterprise’s business and based on unified national standard quota) | 3,504,406.39 | |
| Capital using expense charged to non-financial enterprises and accounted into the current income account | 355,987.05 | |
| Gain from entrusted investment or assets management | 4,003,332.19 | |
| Gain/loss from change of fair value of transactional financial asset and liabilities, and investment gains from disposal of transactional and derivative financial assets and liabilities and | 882,741.74 |
| sellable financial assets, other than valid period value instruments related to the Company’s common businesses | ||
| Write-back of impairment provision of receivables and contract assets for which impairment test is performed individually | 16,097.16 | |
| Gain/loss from commissioned loans | 21,351.12 | |
| Other non-business income and expenditures other than the above | 4,495,326.37 | |
| Less: Influenced amount of income tax | -1,952,557.71 | |
| Influenced amount of minority shareholders’ equity (after-tax) | 0.00 | |
| Total | 15,204,690.95 | -- |
Explanation statement should be made for accidental gain/loss items defined and accidental gain/loss items defined as regulargain/loss items according to the Explanation Announcement of Information Disclosure No. 1 - Non-recurring gain/loss mentioned.
□ Applicable √ Inapplicable
No circumstance that should be defined as recurrent profit and loss according to Explanation Announcement of InformationDisclosure No. 1 - Non-recurring gain/loss occurs in the report period.
Chapter 3 Business Introduction
1. Major businesses of the Company during the report period
Whether the Company needs to comply with disclosure requirements of special industriesYesDecoration
The Company is headquartered in Nanshan District, Shenzhen. The stock was listed on the Shenzhen Stock Exchange onNovember 29, 1995. Currently, five major business subsidiaries of the Company are national high-tech enterprises with modernproduction bases in Shenzhen, Shanghai, Chengdu, Nanchang, Dongguan and Foshan. The Company was engaged in the followingbusinesses in the report period.
1. Curtain wall system and material industry
(1) Main products and purpose
The Company’s main products include energy-saving curtain walls, building integrated photo-voltaics (BIPV), LEDcolor-display curtain walls and aluminum plate materials. Construction curtain walls are mainly used on high-level buildings,large-area public venues such as airports, stations, cultural centers and exhibition centers, daylighting roof, shaped construction(ball-shaped and clock-shaped buildings) with external retaining and decoration functions.
(2) Main business modes, specific risks and changes;
The projects implemented by the Company are mainly through the bidding method to obtain contract orders. Project design,material procurement, production and processing, and the construction and installation and after-sales service model are based on thecontract orders. The main risk of this mode is that it takes a long period of time from the completion of the order to the completion ofthe project, and it is highly dependent on raw materials and labor costs. It is greatly affected by the national industrial policy, rawmaterial prices, and labor market fluctuations. The Company’s curtain wall products are engineered by itself. The operation moderemained unchanged in the report period.
(3) Main business drive
See III. Core Competitiveness Analysis.
(4) Development stage of the industry, circle and industry position
In the first half of the year, China's supply-side structural reforms continued to deepen, and the national regional coordinateddevelopment strategy was further promoted. New urbanization, coordinated development of Beijing-Tianjin-Hebei, ―Belt and Road‖construction, and Guangdong, Hong Kong, Macao and Dawan District development projects provided valuable opportunities for thedevelopment of the curtain wall systems and materials business. Over recent years, a series of industry policies will be issued to pushforward the industry, providing a gold opportunity for the development of energy-saving curtain wall and material business. Theeconomic development of the first and second tier cities is relatively good, and there is a continuous demand for building curtainwalls. Therefore, the market capacity is relatively large and it is also the main area of the curtain wall market competition. There is noobvious periodicity in the curtain wall industry.
The Company is a pioneer and first listed company in this industry. Over the past more than 20 years, the Company hasundertaken hundreds of large projects and received the highest award in the industry China Construction Luban Award and ZhanTianyou Civil Engineering Award for many times. The Company has also received nearly 100 provincial and above awards. TheCompany has been in the top 10 of ―China's top 100 building curtain wall industry‖ for many years, and has already had strong brandadvantages and competitiveness in the industry. The Company has a strong technology lead in the industry with 440 patents,including 37 intention patents and 8 software copyrights. The Company also took part in the preparation of more than 10 national orindustry standards including the Public Construction Energy Saving Design Standard, making 9 records among Chinese enterprises.
The Company has a Class A qualification for building curtain wall engineering contracting and class A qualification for buildingcurtain wall engineering design. It is the highest level for curtain wall design and construction companies in China.
2. Rail transport equipment business
The Company’s main products in this sector are rail transport screen door systems, which are a necessary part of modernsubway system. It is installed at the edge of the subway platform and separates trains from the platform. The Company seeks to winorders through tenders and purchase raw materials and arrange production based on orders. The Company has built a completeindustry chain that integrates designing, production, engineering, after-sales services and technical services. The operation moderemained unchanged in the report period. The Company has developed rail transport screen door systems with independentintellectual property rights. The Company also prepared the first Rail Transport Station Screen Door Standard. At present, theCompany's subway screen doors have covered more than 60% of metropolitan-operated cities in China. More than 80 metro andcloud rails of over 41 cities around the world have adopted the Fangda screen door systems, making the Company the world's largestsupplier of screen doors.
3. New energy industry
Solar PV power generation industry is largely supported by the Chinese government. The Company is one of the firstcompanies that possess intellectual property rights in the designing, production and integration of solar PV systems. The threephotovoltaic power plants that have been connected to the grid have been operating smoothly and the power generation sales revenueand operating profit have all reached the Company's expectations. Among them, the 20MW distributed photovoltaic powergeneration project of Chayu Village, Xuanfeng Town, Luxi County, Jiangxi Province and the distributed photovoltaic powergeneration project of, Songshan Lake in Dongguan have been included in the Renewable Issue issued by the Ministry of Finance theNational Development and Reform Commission and the National Energy Administration. The list of energy and electricity priceadditional funds subsidies can be subsidized by electricity prices.
4. Real estate
The Company has completed one of the projects: Fangda Town; project under development: Nanchang HonggutanFenghuangzhou Fangda Center ", theProject; there are two projects in construction: Fangda Bangshen Project in Baoan District,Shenzhen and Urban Renewal Project along the Dagang River in Henggang, Shenzhen.
For a detailed discussion of the Company’s business, please refer to “III. Analysis of Core Competencies” in this sectionof the report and Chapter VI “Operation Discussion and Analysis”.
II. Major assets change
1. Major assets change
| Main assets | Major change |
| Equity assets | None |
| Fixed assets | None |
| Intangible assets | None |
| Construction in process | Construction in progress increased by 56.16% compared with the beginning of the year, mainly due to the increase in investment in construction of Chengdu Xinjin Base and |
| Shanghai East China Base. | |
| Investment real estate | None |
2. Major foreign assets
□ Applicable √ Inapplicable
3 Core Competitiveness AnalysisWhether the Company needs to comply with disclosure requirements of special industriesYesDecoration
(1) Curtain wall system and material
1. Expertise and brand competitiveness
The industry and target market of the Company have high requirements for the performance of participating enterprises whichhas formed certain thresholds. Especially in the super high-rise buildings, large public buildings and special-shaped externalmaintenance structures, the company has rich experience in project implementation. It has established business contacts andcooperation with many large real estate development companies. The Company has a high reputation and strong marketcompetitiveness.The Company has 440 patents (including 37 invention patents) and 8 software copyrights in the curtain wall system andmaterials industry which has created many firsts in the industry and is one of the high-end preferred brands in the Chinese curtainwall system materials industry. FANGDA is a nationwide well-known trademark in China.
2. Focusing on the high-end market to edge out competitors
In the fierce market competition, the Company accurately positions the market in the field of high-end energy-saving curtainwall systems with high requirements for technology, service and management, and focuses its resources on high-end curtain wallprojects. Many of the curtain wall projects undertaken won the national "Luban Award", "Zhan Tianyou Civil Engineering Award","National Quality Engineering Award", "China Construction Engineering Decoration Award", "White Magnolia" Award and"Customer Satisfaction Project" awards, and Won the title of ―Top Ten Most Competitive in China's Curtain Wall Industry‖. TheCompany has built a leading brand and created a clear edge in the high-end curtain wall market.
3. Well-developed industry base landscape
After years of accumulation and continuous investment in hardware facilities, the Company's curtain wall system and materialsindustry are formed with Shenzhen as the headquarters South China with Dongguan Songshan Lake and Foshan as the baseSouthwest China with Chengdu as the base East China with Shanghai and Central China with Nanchang. As the base of thenational industrial layout, it provides an important guarantee for improving market share and comprehensive competitiveness.
4. General solutions
The Company has integrated the design, production, management and engineering of curtain wall systems to enjoytechnological, cost, quality and service advantages.
5. Talent
The Company has trained a group of outstanding teams with strong marketing technical, management and financial experiencefrom a large number of project implementation experience. The core backbone personnel are stable, ensuring the execution ability oforders and bringing good user experience to customers.
6. Boost overseas market development to increase overseas orders
In recent years, the Company has increased its investment in overseas markets and gradually expanded its influence in Australiaand Southeast Asia. Thanks to good product quality and contract performance, it has continuously won the trust of new and old
customers and more orders. The overseas market orders are growing steadily.
(2) Rail transport equipment business
1. National development strategy
With the implementation of major national strategies such as the Guangdong, Hong Kong, and Macao Bay District, Xiong'anNew District, and the ―Belt and Road‖ Initiative, the region has radiated into Southeast Asia, South Asia, Central Asia, and West Asia,and has extended to Eastern Europe and North Africa with strong demand for infrastructure construction and interconnection. As theworld's largest supplier of rail transit shielding door systems, the Company will also make full use of its advantages in technology,brand, and service to further consolidate and increase its domestic market share, and actively participate in rail transit construction inGuangdong, Hong Kong, Macau BayDistrict and Xiong'an New District. The Company will vigorously expand overseas markets,especially the ―Belt and Road‖ Initiative, maintain the continuity and stability of overseas orders, balance the development ofdomestic and foreign markets, and continue to ―lead‖ the rail transit industry.
2. Expertise competitiveness
Through continued independent innovation, the Company has developed the global leading metro screen door system with fullintellectual property right and broken the monopoly of overseas competitors. The Company has also compiled the Rail TransportStation Screen Door Standard, which is the first of its kind in China. The standard was approved in April 2006 and implemented as anational standard on March 1, 2007. As the first standard in the industry in China, the standard has played a key role in guiding thedevelopment of China's rail transport screen door industry The Company participated in the preparation of the national standard―Evaluation Method for Urban Rail Transit Energy Consumption and Emission Indicators‖ (GB/T 37420-2019) this year, which wasissued by the State Administration of Markets and the National Standardization Administration of China, and will be published in2019 and formally implemented on December 1, 2019, fully embodying the company's leading edge and leading position in the fieldof rail transit screen doors. The Company has 231 metro screen door patents, including 48 invention patents. The Company also haseight computer software copyrights.
3. Brand competitiveness
Up to now, the Company's screen door system products have been applied in rail transit in 41 cities around the world, includingHong Kong, Singapore, Kuala Lumpur, Malaysia, Noida, Thailand, Bangkok, Thailand, etc., with more than 10 million people usinglarge screen door systems every day. The Fangda subway screen door system has grasped a leading market share and establishedincomparable brand influence thanks to its patents, standard and maintenance services.
4. Industry chain advantage
As the first company to enter the subway screen door industry in China, the Company's subway screen doors have reached tomore than 60% of the subway cities in China, and many domestic subway screen doors have entered the maintenance period. TheCompany actively expands its industrial chain and takes the lead in the domestic market to provide metro maintenance services. TheCompany has a natural advantage in this high-end service industry. Our screen door system are independently developed by us, thusenabling us to provide prompt, overall, effective and standard maintenance services for our customers without other third parties. Asmore and more subways are opened, the business volume will continue to increase.
(3) New energy industry
The new energy business mainly comprises solar power PV application, PV construction and LED industry.
1. Technical advantage
With more than ten years’ experience in developing solar energy PV power generating curtain wall technology, the Company isthe earliest company that masters the intelligent property right in the designing, production and integration of solar energy PV curtainwall systems and is a pioneer in the application of PV curtain wall technology.
2. Relation with other industries
Distributed solar power PV power generation is closely related to the Company’s existing businesses. Most distributed solarpower PV systems are closely related to construction. Moreover, the Company has more than 10 years' experience in electricalproduct integration. The Company also has more than 20 years’ experience in construction management and has the level-1
construction curtain wall engineering qualification and electrical installation engineering qualification.
(4) Real Estate
1. The Company is committed to the Guangdong-Hong KongMacao Bay District, focusing on the development of urbanrenewal projects in the core area of Shenzhen. Through the development and operation of Shenzhen Fangda Town Project, theCompany has accumulated valuable experience in the operation of urban renewal projects, and has formed a complete operationmode from the renewal of project plan approval, special planning approval, planning and construction, which is conducive tocontinuous promotion. Development and operation of urban renewal projects such as Shenzhen Fangda Bangshen Project andShenzhen Henggang Dakang River area.
2. Although the company is a later comer in the industry, the Shenzhen Fangda Town project was quickly recognized by themarket and the sales rate was faster. At the same time, the Company has been rated as ―Shenzhen Real Estate Development IndustryDevelopment Potential Enterprise‖ by Shenzhen Housing Association for three consecutive years. In two consecutive years, it hasbeen awarded ―Shenzhen Real Estate Development Industry Brand Value Enterprise‖ with professional operations for commercialand property management.
Chapter 4 Operation Discussion and Analysis
1. Summary
In the first half of 2019, the international environment was complex and changeable. The impact of Sino-US trade frictionsintensified and continued. The domestic economy continued to decline. The Company overcame many unfavorable factors andcompleted the targets set at the beginning of the year. During the reporting period, the Company achieved operating income ofRMB1,425,890,900, a year-on-year decrease of 1.12%, and the net profit attributable to owners of the parent company wasRMB128,581,800, a year-on-year decrease of 44.13%. The decrease in operating income and net profit of the Company was mainlydue to the fact that the sales area of Fangda Town project with higher gross profit and greater contribution to profit in the same periodof last year was close completion. The project realized operating income of RMB204,754,300 in the first half of 2019, compared withthe same period of last year. The decrease was RMB271,728,600, a decrease of 57.03%, and the net profit was RMB55,294,600, adecrease of RMB113,516,400 from the same period of the previous year, a decrease of 67.24%. In addition, in the first half of theyear, the Company's two major industrial curtain wall systems and materials industry and rail transit screen door equipment industrydeveloped well. The curtain wall system and materials industry operating income and net profit increased by 23.53% and 33%respectively. The operating income and net profit of the door equipment industry increased by 50.79% and 68.76% respectively. Asof the end of the reporting period, the company's order reserve was RMB4,992,541,500 (excluding real estate sales), an increase of
7.71% compared with the beginning of the year, which was 3.5 times of the operating income in the first half of the year. Adequateorder reserve provided a strong guarantee for the company's sustainable development.
1. High-end curtain wall system and material business
The Company has always practiced the business philosophy of ―technology-based, innovation as the source‖, adheres to thespirit of ―Fangda Quality‖ with excellence and quality first, and with the core competitiveness of product quality, technical strengthand brand influence. The quality and quantity of the newly signed orders in the first half of the year have remained at a high level. Inthe first half of the year, the Company secured the 188S-C-4 and 188S-D-1 plots of the WS5 unit in the south section of the HuangpuRiver in Xuhui District, Shanghai, and the 31-01(D) plot office building in Xujingzhong, Shanghai Xihongqiao Business District,Chengdu Tianfu Wanke Yuncheng, Chengdu Tianfu International Conference Center, Chengdu Longhu Renmin North Road 6-7Group Central Commercial Street, Chongqing Longhu Shapingba Hub Project, Nanjing Vanke Shangduhui Project, ShenzhenShangzhi Science and Technology Park, Shenzhen Qianhai East Asia Kerry, Shenzhen Jinxiu Science Park Phase III, ShenzhenVanke Antoshan Project, Zhuhai Renhe Hengqin International Chinese Medicine Innovation Center, Marriott Docklands MarriottMelbourne, Australia, Victoria Square, Melbourne, Australia, 89 Victoria Street, Brisbane, Saudi Arabia A large number of high-endcurtain wall systems and materials projects, totaled RMB1.178 bilion. 2. In the first half of 2019, the curtain wall system andmaterials industry realized operating income of RMB1,005,451,500, an increase of 23.53% over the same period of the previous year;the net profit was RMB48,390,900, an increase of 33%, the gross margin was 14.55%, up 0.67 percentages from the same period oflast year. As of the end of the reporting period, the Company's curtain wall system and materials industry orders reserve wasRMB3,134,694,300 which was 3.12 times of the operating income of the curtain wall system and materials industry in the first halfof 2019.
In order to meet the growing demand for orders, the Company has established new production bases in Chengdu Xinjin andShanghai Songjiang. In June this year the Fangda Western Headquarters Base of Chengdu Xinjin has been basically completed. Thebase covers an area of 45,000 square meters and has a total construction area of about 21,000 square meters. The company's EastChina production base in Songjiang, Shanghai, has started in the first half of the year and is scheduled to be completed by the end ofthis year. The base covers an area of 23,800 square meters and has a total construction area of 43,000 square meters. After thecompletion of the two bases, the national industrial layout of the upgrade company will be improved and the production capacity of
the Company's energy-saving and environmental protection curtain wall will be enhanced to provide guarantee for the Company'ssustained and rapid development. After completion, the Company's curtain wall system and materials industry are formed withShenzhen as the headquarters South China with Dongguan Songshan Lake and Foshan as the base Southwest China with Chengdu asthe base East China with Shanghai and Central China with Nanchang. As the base of the national industrial layout, it provides animportant guarantee for improving market share and comprehensive competitiveness.During the reporting period, the curtain wall project of the four projects of Zhuhai R&F Yingkai Plaza, Shenzhen JinlitongFinancial Center, Shenzhen Vanke Binhai Land Building and Haikou Henghaihua Island under construction completed the aboveprojects with high quality product quality and service capacity. The high-tech and high-difficult curtain wall design andconstruction tasks have won honors such as ―Excellent Suppliers‖ from R&F Group, Qianhai Life Insurance, Vanke and Evergrande,reflecting the recognition of the Company's comprehensive strength and brand of the Company's curtain wall business.
2. Rail transport screen door business
As the national ―Belt and Road‖ initiative continues to deepen and the development strategy of Guangdong, Hong Kong andMacao Dawan District continues to advance in depth, in the first half of 2019, the Company's rail transit screen door equipmentindustry has expanded rapidly and has won the Mumbai Metro Line in India, Nanjing Metro Line 7, Zhengzhou Line 4, NingboMetro Line 1, Guiyang Metro Line 2, Phase II, Jinan Rail Transit R2 Line 1, Wuhan Metro Line 5, Xi'an Metro Line 5 orders forscreen door system projects, and also obtained orders for professional technical maintenance services for shielded doors of WuhanRailway Bureau and Shenzhen Metro Line 9, and Shenzhen Metro 1, 2, 3, 5, 7, 9, and 11. Line shield door installation project orders,the total amount of new signed singles was RMB618,636,600, an increase of 95%. Among them, the Mumbai Metro Line 3 project inIndia is the third project of the company in the Indian market after the Noida subway in India and the Ahmedabad subway project inIndia. The company will continue to firmly grasp the rapid development opportunities of the Indian subway construction. Take the―One Belt, One Road‖ express train to speed up the overseas market layout and further expand the Company's business landscape. Inthe first half of the year, the Company's rail transit screen door equipment industry realized operating income of RMB197,936,300, ayear-on-year increase of 50.79%, net profit of RMB35,630,100, a year-on-year increase of 68.76%, and a gross profit margin of
28.00%, an increase of 4.67 percentage points. As of the end of the reporting period, the Company's rail transit screen equipmentindustry orders reserve reached RMB1,857,847,200, an increase of 27.38% compared with the beginning of the year, which is 9.38times of the company's rail transit screen equipment industry operating income in the first half of the year. The Company's rail transitscreen door equipment industry has reached a new level, entering a new era of rapid development and continuing to lead the industry.
During the reporting period, the Company's construction of the screen door system of the Wuhan Metro Line 2 South ExtensionLine, Zhengzhou Metro Line 5, Lanzhou Metro Line 1 Phase 1, and Nanchang Metro Line 2 after the passage section were opened.At present, Fangda's screen door system has been applied in rail transit in 41 cities around the world. The domestic coverage of thescreen door system is over 60%. There are more than 10 million people using the large screen door system every day. The marketshare has ranked first in the world for nearly five years, and the Company is the world's largest supplier of rail transit screen doors.
On May 10, the Company participated in the preparation of the national standard ―Evaluation Method for Urban Rail TransitEnergy Consumption and Emission Indicators‖ (GB/T 37420-2019) 5 year, which was issued by the State Administration of Marketsand the National Standardization Administration of China, and will be published in 2019 and formally implemented on December 1,2019. The Company's participation in the preparation of the first domestic screen door industry standard "Urban Rail Transit PlatformScreen Door", andin the standard compilation in the domestic rail transit field reflect the Company's technology in the urban railtransit field.
3. New energy industry
In the first half of the year, there were more rains. The Company strengthened the operation and maintenance of solarphotovoltaic power station equipment. The three solar photovoltaic power plants that have been connected to the grid havemaintained efficient and safe operation.
4. Real estate
(1) Shenzhen Fangda Town Project: In the first half of 2019, the Fangda Town project achieved a sales area of 2,853.75 square
meters and an accumulated sales area of 85,264.25 square meters. As of the end of the first half of 2019, the area for sale was 7,822square meters. The business investment signing rate was 94%, the cumulative rental area of 1# building was 16,854.13 square meters,and the occupancy rate was 23.24%.
(2) Nanchang Fenghuangzhou Project (Fangda Center Project): The project is located in Fenghuangzhou Area, Honggutan NewDistrict, Nanchang City. Construction started in May 2018. The project covers an area of about 17,000 square meters and has a totalconstruction area of about 93,000 square meters. With a total construction area of 66,000 square meters, Jirong is a commercialcomplex covering commercial, apartment and office buildings. The self-use and sales area of the whole project is half of each. Theproject is scheduled to start pre-sale in the second half of 2019 and be completed and accepted in the first half of 2020. At present,the project construction is progressing in accordance with the expected engineering nodes. In the future, the project will contributeprofits and cash flow to the Company.
(3) Shenzhen Fangda Bangshen Industrial Park Project: The project is located in Fuyong, Bao'an District, Shenzhen. It coversan area of 20,714.9 square meters and is currently an industrial plant. The project has begun to declare the project. As of the end ofthe first half of 2019, the project is still in the stage of approval.
(4) Urban renewal project along the Dagang River in Henggang, Shenzhen: The project is located in Dakang Village, YuanshanStreet, Longgang District, Shenzhen. The area of the project to be demolished is about 80,000 square meters. The update direction ismainly residential function, and finally subject to government approval. The project work is currently being actively promoted.
5. Awards
During the reporting period, the Company won the title of ―Guangdong Province May 1st Labor Award‖, ―Shenzhen QualityStrong City Key Enterprise‖, ―2018 Shenzhen Quality Credit Demonstration Unit‖, and was awarded the ―Innovation China·Top 100Listed Company‖ award. Ranked 12th in the growth list of A-share listed companies in the past five years.
Fangda Jianke Co., a wholly-owned subsidiary, was awarded ―2019 Shenzhen University Building Doors and Windows CurtainWall Industry Academic Exchange Advanced Unit‖. General Manager Wei Yuexing won the ―Innovative Talents‖ award in ShenzhenDecoration Industry and Zhang Jianhui, Regional Manager, won the ―Top Ten Outstanding Project Managers‖ award. Senior designerHu Guangzhou won the "Top Ten Young Designers" award and the curtain wall maker Xu Xiuhui won the "Top Ten Star Craftsmen"award. The four curtain wall projects including Fangda Town (Phase I), Shenye Shangcheng (Southern District) Tower 2, ChinaEnergy Storage Building and China Southern Power Grid Production and Research Comprehensive Base undertaken by the companywon the ―China Construction Engineering Decoration Award‖. Shenzhen Hanjing Finance curtain wall project was awarded ―MyFavorite Curtain Wall Project‖.
Fangda Zhichuang Technology, a wholly-owned subsidiary, was awarded "Shenzhen Metro 2018 Excellent EquipmentSupplier", "Shenzhen Metro Phase III Excellent Equipment Supplier", and "Shenzhen Metro Line 7, 9 and 11 PerformanceEvaluation Excellent Unit" "2018 Xi'an Metro Construction Labor Competition Advanced Unit", employees Ouyang Kehua, ZhuZhenfei, Kong Debing were awarded "Shenzhen Baiyou Craftsman" and Tang Long was awarded "2018 Xi'an Subway ConstructionLabor Competition Advanced Individual".
Fangda Jiangxi New Material received titles including 2018 Nanchang High-Tech Industry Park Leading Enterprise, andLeading Company in Standardization.
After 2018, the wholly-owned subsidiary Fangda Real Estate Co., Ltd. was once again awarded the "Shenzhen Real EstateDevelopment Industry Brand Value Enterprise" award by the Shenzhen Real Estate Association.
2. Main business analysis
For details see Management Discussion and Analysis – 1. ProfileYear-on-year changes in major financial data
In RMB
| This report period | Same period last year | YOY change (% ) | Cause of change |
| Turnover | 1,425,890,946.99 | 1,442,050,896.53 | -1.12% | |
| Operation cost | 1,066,065,970.56 | 935,486,175.73 | 13.96% | |
| Sales expense | 27,175,638.50 | 27,060,141.24 | 0.43% | |
| Administrative expense | 82,678,777.56 | 66,539,185.89 | 24.26% | |
| Financial expenses | 49,481,340.36 | 33,772,321.68 | 46.51% | Mainly due to the increase in borrowings during the period and the suspension of capitalization of interest expenses of Fangda Town project |
| Income tax expenses | 24,019,259.71 | 63,046,179.95 | -61.90% | Mainly due to the decrease in profits which is due to the decrease in income tax |
| R&D investment | 69,859,537.37 | 42,082,922.04 | 66.00% | Mainly due to increased investment in research and development |
| Cash flow generated by business operations, net | -372,725,003.11 | -31,426,267.64 | -1,086.03% | Mainly due to the decrease in cash flow from real estate business activities |
| Cash flow generated by investment activities, net | -579,720,478.07 | -43,736,732.77 | -1,225.48% | Mainly due to the fact that the current wealth management investment has not been repaid |
| Net cash flow generated by financing activities | 376,629,126.62 | 94,383,606.69 | 299.04% | Mainly due to the increase in bank loans and the payment of cash dividends in the current period. |
| Net increase in cash and cash equivalents | -576,045,363.83 | 20,226,410.15 | -2,947.99% |
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.
3. Business composition
In RMB
| Turnover | Operation cost | Gross margin | Year-on-year change in | Year-on-year change in | Year-on-year change in gross |
| operating revenue | operating costs | margin | ||||
| Industry | ||||||
| Metal production | 1,005,451,498.68 | 859,166,194.19 | 14.55% | 23.53% | 22.57% | 0.67% |
| Real estate | 204,754,339.12 | 57,493,641.50 | 71.92% | -57.03% | -54.67% | -1.46% |
| Railroad industry | 197,936,254.53 | 142,515,728.84 | 28.00% | 50.79% | 41.61% | 4.67% |
| Product | ||||||
| Curtain wall system and materials | 1,005,451,498.68 | 859,166,194.19 | 14.55% | 23.53% | 22.57% | 0.67% |
| Real estate sales | 204,754,339.12 | 57,493,641.50 | 71.92% | -57.03% | -54.67% | -1.46% |
| Metro screen door | 197,936,254.53 | 142,515,728.84 | 28.00% | 50.79% | 41.61% | 4.67% |
| District | ||||||
| In China | 1,376,533,552.06 | 1,030,698,498.88 | 25.12% | -1.86% | 13.64% | -10.21% |
3. Non-core business analysis
√ Applicable □ Inapplicable
In RMB
| Amount | Profit percentage | Reason | Whether continuous | |
| Investment income | 4,056,397.16 | 2.66% | Mainly from bank financial products | No |
| Gain/loss caused by changes in fair value | 121,506.67 | 0.08% | Changes in the fair value of investment fund products | No |
| Assets impairment | -4,369,660.38 | -2.86% | Mainly bad debt provision corresponding to accounts receivable | Yes |
| Non-operating revenue | 4,873,892.15 | 3.19% | Mainly due to the overdue interest income of the receivables of Chongqing Telecom project of RMB4,372,800. | No |
| Non-business expenses | 378,565.80 | 0.25% | No |
4. Assets and liabilities
1. Major changes in assets composition
In RMB
| End of the report period | Same period last year | Change (% ) | Notes | |||
| Amount | Proportion in total assets | Amount | Proportion in total assets | |||
| Monetary capital | 1,072,726,726.45 | 9.80% | 1,199,195,175.72 | 15.19% | -5.39% | |
| Account receivable | 2,118,904,495.79 | 19.37% | 2,077,617,891.78 | 26.32% | -6.95% | |
| Inventory | 750,395,540.06 | 6.86% | 726,389,203.30 | 9.20% | -2.34% | |
| Investment real estate | 5,285,303,323.58 | 48.31% | 2,332,213,399.66 | 29.55% | 18.76% | Mainly due to the Fangda Town Project 1# building as an investment real estate, since the fourth quarter of 2018, the subsequent measurement based on fair value to generate value-added |
| Long-term share equity investment | 69,779,924.33 | 0.64% | 69,871,054.85 | 0.89% | -0.25% | |
| Fixed assets | 431,948,450.66 | 3.95% | 474,159,833.94 | 6.01% | -2.06% | |
| Construction in process | 90,993,650.25 | 0.83% | 2,820,259.75 | 0.04% | 0.79% | |
| Short-term loans | 900,000,000.00 | 8.23% | 524,000,000.00 | 6.64% | 1.59% | |
| Long-term loans | 593,978,153.39 | 5.43% | 1,293,978,153.39 | 16.39% | -10.96% | Repayment of borrowings in the current period and reclassification of payments due within one year to current liabilities |
| Other current assets | 114,294,388.81 | 1.04% | 270,720,575.33 | 3.43% | -2.39% | Mainly due to decrease in bank financial products |
| Non-current liabilities due in 1 year | 800,000,000.00 | 7.31% | 200,000,000.00 | 2.53% | 4.78% | Increase the reclassification of long-term borrowings due within one year |
2. Assets and liabilities measured at fair value
√ Applicable □ Inapplicable
In RMB
| Item | Opening amount | Gain/loss caused by changes in fair value | Accumulative changes in fair value accounting into the income account | Impairment provided in the period | Amount purchased in the period | Amount sold in the period | Closing amount |
| Financial assets | |||||||
| 1. Transactional financial assets (excluding derivative financial assets) | 121,506.67 | 400,000,000.00 | 200,000,000.00 | 200,121,506.67 | |||
| 2. Derivative financial assets | 17,375.00 | ||||||
| 4. Investment in other equity tools | 21,674,008.23 | -6,888,567.44 | 21,674,008.23 | ||||
| Subtotal | 21,674,008.23 | 121,506.67 | -6,888,567.44 | 400,000,000.00 | 200,000,000.00 | 221,812,889.90 | |
| Investment real estate | 5,230,896,067.50 | 11,675,404.61 | 29,292,017.43 | 5,260,188,084.93 | |||
| Total | 5,252,570,075.73 | 121,506.67 | 4,786,837.17 | 429,292,017.43 | 200,000,000.00 | 5,482,000,974.83 | |
| Financial liabilities | 1,625,725.00 | 0.00 | |||||
Major changes in the assets measurement property of the Company in the report period
□ Yes √ No
3. Right restriction of assets at the end of the period
| Item | Closing book value | Reason |
| Monetary capital | 692,581,199.60 | Deposit and time deposit |
| Fixed assets | 50,528,321.98 | Credit guarantee |
| Investment real estate | 309,189,866.37 | Credit guarantee |
| 100% stake in Fangda Property Development held by the Company | 200,000,000.00 | Loan by pledge |
| Total | 1,252,299,387.95 |
VI. Investment
1. General situation
□ Applicable √ Inapplicable
2. Major equity investment in the report period
√ Applicable □ Inapplicable
In RMB
| Invested company | Main business | Method of investment | Investment amount | Shareholding percentage | Capital source | Partner | Term of investment | Type of product | Progress as of the balance sheet date | Estimate return | Current investment profit and loss | Whether litigation is involved | Disclosure date (if any) | Disclosure source (if any) |
| Shenzhen Zhongrong Litai Investment Co., Ltd. | Real estate development | Acquisition | 112,613,316.68 | 100.00% | Self-owned fund | Shenzhen Yikang Real Estate Co., Ltd., Shenzhen Qianhai Zhongzheng Dingfeng No. 6 Investment Enterprise (Limited Partnership) | Zhongrong Litai's actual operating period | Real estate development | 55% equity has been transferred and control has been transferred to the Company | -- | -403,894.30 | No | None | None |
| Total | -- | -- | 112,613,316.68 | -- | -- | -- | -- | -- | -- | -- | -403,894.30 | -- | -- | -- |
3. Major non-equity investment in the report period
□ Applicable √ Inapplicable
4. Financial assets investment
(1) Securities investment
√ Applicable □ Inapplicable
| Securities | Code | Abbreviation | Initial investment cost | Accounting method | Opening book value | Gain/loss caused by changes in fair value | Accumulative changes in fair value accounting into the income account | Amount purchased in the period | Amount sold in the period | Gain/loss | Closing book value | Accounting item | Capital source |
| Fund | 004400 | Jinxin Minxing Bond A | 200,000,000.00 | Measurement at fair value | 0.00 | 200,000,000.00 | 200,000,000.00 | 761,235.07 | 0.00 | Transactional financial assets | Self-owned fund | ||
| Fund | 002163 | Dongfang Huixin Flexible Configuration Compound Securities Investment Fund Class C | 200,000,000.00 | Measurement at fair value | 0.00 | 121,506.67 | 200,000,000.00 | 121,506.67 | 200,121,506.67 | Transactional financial assets | Self-owned fund | ||
| Total | 400,000,000.00 | -- | 0.00 | 121,506.67 | 0.00 | 400,000,000.00 | 200,000,000.00 | 882,741.74 | 200,121,506.67 | -- | -- | ||
| Disclosure date of approval by the Board of Directors of securities investment | September 11, 2018 | ||||||||||||
| Disclosure date of approval by the Board of Directors | None | ||||||||||||
(2) Derivative investment
√ Applicable □ Inapplicable
In RMB10,000
of securities investment
Derivativeinvestmentoperator
| Derivative investment operator | Relationship | Related transaction | Type | Initial amount | Start date | End date | Initial investment amount | Amount in this period | Amount sold in this period | Impairment provision (if any) | Closing investment amount | Proportion of closing investment amount in the closing net assets in the report period | Actual gain/loss in the report period |
| Shanghai Futures Exchange | No | No | Shanghai aluminum | 2,535.76 | July 13, 2018 | January 31, 2020 | 2,535.76 | 11,019.77 | 8,458.21 | 5,097.32 | 1.01% | 34.16 | |
| Total | 2,535.76 | -- | -- | 2,535.76 | 11,019.77 | 8,458.21 | 5,097.32 | 1.01% | 34.16 | ||||
| Capital source | Self-owned fund | ||||||||||||
| Lawsuit involved | None | ||||||||||||
| Disclosure date of derivative investment approval by the Board of Directors | October 31, 2017 | ||||||||||||
| Disclosure date of derivative investment approval by the shareholders’ meeting | None | ||||||||||||
| Risk analysis and control measures for the derivative holding in the report period (including without limitation market, liquidity, credit, operation and legal risks) | To prevent the risk of fluctuation of raw material prices, the Company adopted the aluminum futures exchanged at the domestic futures exchange to provide hedging for aluminum as a raw material for the Company. The Company has set up and implemented the Provincial Regulations on China Fangda Group Domestic Futures Hedging to prevent risks. | ||||||||||||
| Changes in the market price or fair value of the derivative in the report | Fair value of derivatives are measured at open prices in the futures market | ||||||||||||
| period, the analysis of the derivative’s fair value should disclose the method used and related assumptions and parameters. | |
| 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 |
VI. 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
VII. Analysis of major joint stock companies
√ Applicable □ Inapplicable
Major 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 Zhichuang | Subsidiary | Subway screen door and service | 105,000,000.00 | 559,417,204.89 | 238,461,667.32 | 197,936,254.53 | 28,115,721.39 | 24,260,468.27 |
| Fangda Property | Subsidiary | Real estate | 200,000,000.00 | 6,456,192,056.32 | 3,237,187,299.99 | 185,080,344.80 | 66,076,465.64 | 53,874,527.52 |
| Fangda Jianke | Subsidiary | Curtain wall system and materials | 500,000,000.00 | 3,260,584,986.85 | 1,074,236,659.57 | 906,677,681.20 | 48,690,014.92 | 44,399,848.47 |
Acquisition and disposal of subsidiaries in the report period
√ Applicable □ Inapplicable
| Company | Acquisition and disposal of subsidiaries in | Impacts on overall production, operation |
| the report period | and performance | |
| Fangda Southeast Asia Company Limited | Newly set | None |
| Shenzhen Zhongrong Litai Investment Co., Ltd. | Obtained from transfer | None |
| Shenzhen Kexunda Software Co., Ltd. | Liquidation | None |
VIII. Structural entities controlled by the Company
□ Applicable √ Inapplicable
IX. Forecast of operating performance between January and September in 2019Warning and reasons of possible net loss or substantial change from the last period between the beginning of the year and the end ofthe next report period
□ Applicable √ Inapplicable
X. Risks facing the company and measures
1. Market risks and measures
As the overall designing and engineering quality continues improving in the domestic construction curtain wall industry,curtain wall products will become increasingly standard, intensifying the market competition. In addition, the market concentrationof first- and second-tier cities will increase, and regional competition will become more intense. The Company will continue to adopta prudent management policy, refined management, and technological innovations to reduce management costs and accelerate thereturn of funds. Through new technologies and processes, we will improve product quality, lower costs and elevate earnings. Whileconsolidating the domestic market, the Company will step up the efforts in exploring overseas markets, thus elevating ourcompetitiveness in global markets and improving our resistance to risks.
2. Management risks and measures
With an increase in orders in recent years and operation of five industry bases, the Company has continued expanding rapidlyin terms of capitalization, business and teams. The organizational structure and management system have become more complicated,leading to management risks in industry expansion. The Company will continue to improve the management mode, integratebusiness management, optimize the business flow, seeking to build a high-efficient and solid management team. We will introducehigh-quality, professional technical and management talents in different fields to strengthen the Company's core competitiveness. Wewill create a sound environment for innovation and development encourage product innovation technological innovation andmanagement innovation and further enhance the Company's business competitiveness.
3. Production and operation risks and measures
The trade fight between China and the U.S., macro-economy and market demand have added to the fluctuation in prices ofmain raw materials such as aluminum and steel and labor, affecting the Company’s profitability and creating additional productionand operation risks for the Company. The Company has sought to lower the purchase and production costs, accelerate inventoryturnover, pay attention to technical R&D, reduce consumption of raw materials, introduce automatic and intelligent productionequipment, strengthen staff training to improve working efficiency.
4. Solar PV power plant risks and measures
As an important asset, photovoltaic power plants need to ensure the safe and stable operation of the power station. TheCompany guarantees through the establishment of reasonable operation and maintenance division and scientific management system,
such as production operation system, safety management system, emergency fire protection system, equipment operation rules, etc.,timely grasp the operation status of the power station, and find existing or potential problems. Ensure normal power generation.
5. Risks and countermeasures of real estate project policy regulation
1. The Company is committed to the Guangdong-Hong KongMacao Bay District, of urban renewal projects in the core area ofShenzhen. According to the market and policy, the Company will carefully select relevant projects to avoid related risks.
Chapter 5 Significant Events
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 | Index for information disclosure |
| 2018 Annual Shareholder Meeting | Annual shareholders’ meeting | 21.52% | February 19, 2019 | February 20, 2019 | Notice on Resolutions of the Annual Shareholders’ Meeting (2018) (2019-19) released on www.cninfo.com.cn |
2. Shareholders of preference shares of which voting right resume convening an extraordinaryshareholders’ meeting
□ Applicable √ Inapplicable
II. 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.III. 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 CompanyIV. 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
IX. Punishment and rectification
□ Applicable √ Inapplicable
The Company received no penalty and made no correction in the report period.
X. Credibility of the Company, controlling shareholder and actual controller
□ Applicable √ Inapplicable
XI. Share incentive schemes, staff shareholding program or other incentive plans
□ Applicable √ Inapplicable
There is no share incentive schemes, staff shareholding program or other incentive plans in the report period
XII. 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. Other major related transactions
□ Applicable √ Inapplicable
The Company has no other significant related transaction in the report period.XIII. 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 report period.XIV. 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
LeasingThe investment real estate is used as external leasing. The rental income in the report period is RMB32,407,941.33.Projects that create gains accounting for over 10% of the Company’s total profit in the report period
□ Applicable √ Inapplicable
The Company leased no projects that create gains accounting for over 10% of the Company’s total profit in the report period.
2. Significant guarantee
√ Applicable □ Inapplicable
(1) Guarantee
In RMB10,000
| External guarantees made by the Company (exclude those made for subsidiaries) | ||||||||
| Guarantee provided to | Date of disclosure | Guarantee amount | Actual date of occurring (signing date of agreements) | Actual amount of guarantee | Type of guarantee | Term | Completed or not | Related party |
| None | ||||||||
| Guarantee provided to subsidiaries | ||||||||
| Guarantee provided to | Date of disclosure | Guarantee amount | Actual date of occurring (signing date of agreements) | Actual amount of guarantee | Type of guarantee | Term | Completed or not | Related party |
| Fangda Jianke | January 30, 2019 | 30,000 | August 28, 2018 | 12,537.24 | Joint liability | since engage of contract to 2 years upon due of debt | No | Yes |
| Fangda Jianke | January 30, 2019 | 40,000 | April 1 2019 | 13,722.24 | Joint liability | since engage of contract to 2 years upon due of debt | No | Yes |
| Fangda Jianke | January 30, 2019 | 40,000 | March 26, 2019 | 9,392.86 | Joint liability | since engage of contract to 2 years upon due of debt | No | Yes |
| Fangda Jianke | January 30, 2019 | 20,000 | April 10, 2018 | 11,174.93 | Joint liability | since engage of contract to 2 years upon due of debt | No | Yes |
| Fangda Jianke | January 30, 2019 | 9,000 | July 13, 2018 | 6,288 | Joint liability | since engage of contract to 2 years upon due of debt | No | Yes |
| Fangda Jianke | January 30, 2019 | 10,000 | June 11, 2018 | 1,165.19 | Joint liability | since engage of contract to 2 years upon | No | Yes |
| due of debt | ||||||||
| Fangda Zhichuang | January 30, 2019 | 21,600 | August 06, 2018 | 18,429.4 | Joint liability | since engage of contract to 2 years upon due of debt | No | Yes |
| Fangda Zhichuang | January 30, 2019 | 12,000 | March 26, 2019 | 303.25 | Joint liability | since engage of contract to 2 years upon due of debt | No | Yes |
| Fangda Zhichuang | January 30, 2019 | 15,000 | May 27, 2019 | 4,398.15 | Joint liability | since engage of contract to 2 years upon due of debt | No | Yes |
| Fangda New Material | January 30, 2019 | 8,000 | April 24, 2019 | 7,715.84 | Joint liability | since engage of contract to 2 years upon due of debt | No | Yes |
| Fangda New Material | January 30, 2019 | 6,500 | June 26, 2019 | 795.98 | Joint liability | since engage of contract to 2 years upon due of debt | No | Yes |
| Fangda Property | January 30, 2019 | 130,000 | February 03, 2015 | 79,397.82 | Joint liability | since engage of contract to 2 years upon due of debt | No | Yes |
| The Company | January 30, 2019 | 60,000 | March 26, 2019 | 20,000 | Joint liability | since engage of contract to 2 years upon due of debt | No | Yes |
| The Company | January 30, 2019 | 25,000 | September 29, 2018 | 20,000 | Joint liability | since engage of contract to 2 years upon due of debt | No | Yes |
| Total of guarantee to subsidiaries approved in the report term (B1) | 427,100 | Total of guarantee to subsidiaries actually occurred in the report term (B2) | 66,608.98 | |||||
| Total of guarantee to subsidiaries approved as of the report term (B3) | 427,100 | Total of balance of guarantee actually provided to the subsidiaries as of end of report term (B4) | 205,320.89 | |||||
| Guarantee provided to subsidiaries | ||||||||
| Guarantee provided to | Date of disclosure | Guarantee amount | Actual date of occurring (signing date of agreements) | Actual amount of guarantee | Type of guarantee | 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) | 427,100 | Total of guarantee occurred in the report term (A2+B2+C2) | 66,608.98 | ||||||
| Total of guarantee approved as of end of report term (A3+B3+C3) | 427,100 | Total of guarantee occurred as of the end of report term (A4+B4+C4) | 205,320.89 | ||||||
| Percentage of the total guarantee occurred (A4+B4+C4) on net asset of the Company | 40.87% | ||||||||
| Including: | |||||||||
| Guarantees provided to the shareholders, substantial controllers and the related parties (D) | 0 | ||||||||
| Guarantee provided directly or indirectly to objects with over 70% of liability on asset ratio (E) | 0 | ||||||||
| Amount of guarantee over 50% of the net asset (F) | 0 | ||||||||
| Total of the above 3 (D+E+F) | 0 | ||||||||
| Statement on the possible joint liabilities on the guarantees not due yet (if any) | None | ||||||||
| Statement of external guarantees violating the procedure (if any) | None | ||||||||
(2) Incompliant external guarantee
□ Applicable √ Inapplicable
The Company made no incompliant external guarantee in the report period.
3. Other significant contract
□ Applicable √ Inapplicable
The Company entered into no other significant contract in the report.
XV. Social responsibilities
1. Environmental protection
Whether the Company and its subsidiaries are key polluting companies disclosed by the environmental protection authority
NoThe Company and its subsidiaries have earnestly implemented the Environmental Protection Law of the People's Republic of China,the Law of the People's Republic of China on Water Pollution Prevention and Control, the Law of the People's Republic of China onthe Prevention and Control of Air Pollution, and the Law of the People's Republic of China on the Prevention and Control of SolidWaste Pollution. In the environmental protection laws and regulations, there were no penalties for violations of laws and regulationsduring the reporting period.
2. Performance of poverty relieving responsibilities
(1) Half-year poverty relieving summary
In the first half of 2019, the Company used funds for precision poverty alleviation projects of RMB122,000 as follows:
(1) Donated RMB100,000 to the Ganzhou Charity Federation of Jiangxi Province to fund the Ruijin City Charity Association topurchase defibrillators at the Red Spot;
(2) donated RMB20,000 to two poverty-stricken villages in Luxi County, Pingxiang City, Jiangxi Province for the construction ofpublic facilities;
(3) Donated RMB2,000 to the Social Assistance Center of Luxiang Town, Jinshan District, Shanghai for charity assistance activities.
(2) Result of targeted poverty alleviation
| Specifications | Unit | Qty/Description |
| 1. General situation | —— | —— |
| Including: 1. capital | (in RMB10,000) | 12.2 |
| II. Investment | —— | —— |
| 1. Industry development poverty relief | —— | —— |
| 2. Employment transfer | —— | —— |
| 3. Relocation | —— | —— |
| 4. Education | —— | —— |
| 5. Health care support | —— | —— |
| Including: 5.1 Contribution to health care sources in poor areas | (in RMB10,000) | 10 |
| 6. Eco-protection support | —— | —— |
| 7. Last-line guarantee | —— | —— |
| 8. Social poverty relieving | —— | —— |
| 8.2 Targeted poverty alleviation investment amount | (in RMB10,000) | 2 |
| 9. Others | —— | —— |
| Including: 9.1 Number of projects | Item | 1 |
| 9.2 Investment | (in RMB10,000) | 0.2 |
| III. Prizes | —— | —— |
(3) Further property relief plans
The Company donated Amount RMB680,000 for targeted poverty in H1 2019:
(1) In order to help the Lianhua County of Pingxiang City Jiangxi Province to achieve poverty alleviation, the Company plans todonate RMB500,000 to the Pingxiang City Charity Association to develop the lily industry.
2. In order to assist the Ji'an City Chamber of Commerce in Jiangxi Province, ―100 Enterprises to Help 100 Villages‖, education andpoverty alleviation activities, the company plans to donate RMB150,000 to poor village high schools and college students.
3. Donated RMB30,000 to two students at Jiangxi Ganzhou Zhanggong district Shahe Longcun village.The Company will continue to fulfill its social responsibility for precision poverty alleviation, and make donations from time to timebased on business development.
XVI. Other material events
□ Applicable √ Inapplicable
The Company had no other significant event to be explained in the report period.XVII. Material events of subsidiaries
□ Applicable √ Inapplicable
Chapter 6 Changes in Share Capital and Shareholders
I. Changes in shares
1. Changes in shares
In share
| Before the change | Change (+,-) | After the change | |||||||
| Quantity | Proportion | Issued new shares | Bonus shares | Transferred from reserves | Others | Subtotal | Quantity | Proportion | |
| I. Shares with trade restriction conditions | 1,431,568 | 0.12% | 1,431,568 | 0.13% | |||||
| 1. Other domestic shares | 1,431,568 | 0.12% | 1,431,568 | 0.13% | |||||
| Domestic natural person shares | 1,431,568 | 0.12% | 1,431,568 | 0.13% | |||||
| II. Shares without trading limited conditions | 1,148,308,021 | 99.88% | -26,355,400 | -26,355,400 | 1,121,952,621 | 99.87% | |||
| 1. Common shares in RMB | 678,283,904 | 58.99% | 678,283,904 | 60.38% | |||||
| 2. Foreign shares in domestic market | 470,024,117 | 40.88% | -26,355,400 | -26,355,400 | 443,668,717 | 39.49% | |||
| III. Total of capital shares | 1,149,739,589 | 100.00% | -26,355,400 | -26,355,400 | 1,123,384,189 | 100.00% | |||
Reasons
√ Applicable □ Inapplicable
During the reporting period, the Company repurchased 26,355,400 shares of domestically listed foreign shares (B shares).
Approval of the change
√ Applicable □ Inapplicable
The Company held the 10th meeting of the 8th Board of Directors and the first extraordinary shareholders meeting of 2018 onSeptember 10 2018 and September 27 2018 respectively and reviewed and approved the repurchase of some domestically listedforeign shares (B shares).
Share transfer
√ Applicable □ Inapplicable
From December 19, 2018 to January 3, 2019, the Company repurchased 32,097,497 shares of B shares through centralized bidding,and completed the cancellation of the shares at China Securities Depository and Clearing Co., Ltd. Shenzhen Branch on January 11,2019.
Progress in the implementation of share repurchase
√ Applicable □ Inapplicable
| Period | Number of shares | Fund used | Highest price (HKD/share) | Lowest price (HKD/share) | Date of cancellation |
| December 19, 2018 to Monday, December 31, 2018 | 5,742,097 | 19,488,199.08 | 3.58 | 3.24 | January 11, 2019 |
| January 02, 2019 to January 3, 2019 | 26,355,400 | 93,524,433.13 | |||
| Total | 32,097,497 | 113,012,632.21 |
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 √ Inapplicable
2. Changes in conditional shares
□ Applicable √ Inapplicable
II. Share placing and listing
□ Applicable √ Inapplicable
III. Shareholders and shareholding
In share
| Number of shareholders of | 62,141 | Number of shareholders of | 0 |
| common shares at the end of the report period | preferred stocks of which voting rights recovered in the report period | ||||||||||
| Shareholders holding 5% of the Company's common shares or top-10 shareholders | |||||||||||
| 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 | Pledging or freezing | ||||
| Share status | Quantity | ||||||||||
| Shenzhen Banglin Technologies Development Co., Ltd. | Domestic non-state legal person | 10.08% | 113,202,154 | - | 113,202,154 | Pledged | 32,860,000 | ||||
| Shengjiu Investment Ltd. | Foreign legal person | 8.52% | 95,688,766 | 1,813,128 | 95,688,766 | ||||||
| Gong Qing Cheng Shi Li He Investment Management Partnership Enterprise (limited partner) | Domestic non-state legal person | 2.38% | 26,791,488 | - | 26,791,488 | ||||||
| Fang Wei | Domestic natural person | 1.65% | 18,514,449 | -16,097,004 | 18,514,449 | ||||||
| SUN HUNG KAI INVESTMENT SERVICES LTD | Foreign legal person | 0.89% | 10,053,618 | -115,384 | 10,053,618 | ||||||
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | Foreign legal person | 0.71% | 7,946,483 | - | 7,946,483 | ||||||
| Shenwan Hongyuan Securities (Hong Kong) Co., Ltd. | Foreign legal person | 0.55% | 6,158,732 | -13,720,415 | 6,158,732 | ||||||
| VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND | Foreign legal person | 0.52% | 5,872,007 | -153,951 | 5,872,007 | ||||||
| Qu Chunlin | Domestic natural person | 0.38% | 4,236,961 | 386,900 | 4,236,961 | ||||||
| First Shanghai Securities Limited | Foreign legal person | 0.36% | 4,001,704 | - | 4,001,704 | ||||||
| A strategic investor or ordinary legal person becomes the Top10 shareholder due a stock | None | ||||||||||
| issue. | ||||
| 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. 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. | |||
| Top 10 shareholders of unconditional common shares | ||||
| Shareholder | Amount of common shares without sales restriction | Category of shares | ||
| Category of shares | Quantity | |||
| Shenzhen Banglin Technologies Development Co., Ltd. | 113,202,154 | RMB common shares | 113,202,154 | |
| Shengjiu Investment Ltd. | 95,688,766 | Foreign shares listed in domestic exchanges | 95,688,766 | |
| Gong Qing Cheng Shi Li He Investment Management Partnership Enterprise (limited partner) | 26,791,488 | RMB common shares | 26,791,488 | |
| Fang Wei | 18,514,449 | RMB common shares | 18,514,449 | |
| SUN HUNG KAI INVESTMENT SERVICES LTD | 10,053,618 | Foreign shares listed in domestic exchanges | 10,053,618 | |
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | 7,946,483 | Foreign shares listed in domestic exchanges | 7,946,483 | |
| Shenwan Hongyuan Securities (Hong Kong) Co., Ltd. | 6,158,732 | Foreign shares listed in domestic exchanges | 6,158,732 | |
| VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND | 5,872,007 | Foreign shares listed in domestic exchanges | 5,872,007 | |
| Qu Chunlin | 4,236,961 | RMB common shares | 4,236,961 | |
| First Shanghai Securities Limited | 4,001,704 | Foreign shares listed in domestic exchanges | 4,001,704 | |
| No action-in-concert or related parties among the top10 | Among the shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu Investment Co., Ltd. are parties action-in-concert. Shenzhen Banglin Technology | |||
unconditional common shareshareholders and between the top10unconditional common shareshareholders and the top10 commonshare shareholders
| 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. | |
| Top-10 common share shareholders participating in margin trade | None |
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 unconditional commonshares in the report periodIV. 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 7 Preferred Shares
□ Applicable √ Inapplicable
The Company had no preferred share in the report period.
Chapter 8 Particulars about the Directors, Supervisors, and
Senior ManagementI. Changes in shareholding of Directors, Supervisors and Senior Management
□ Applicable √ Inapplicable
The Company’s Directors, supervisors and senior management shareholding has remained unchanged during the report period. Fordetails, please refer to the 2018 annual report.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, pleaserefer to the 2018 annual report.
Chapter 9 Information about the Company’s SecuritiesBonds publicly issued and listed in a securities exchange, immature or not fully paid by the approval date of the annual reportNo
Chapter 10 Financial Statements
I. Auditor’s reportWhether the interim report is audited
□ Yes √ No
The financial statements for H1 2014 have not been audited.II. Financial statements
Unit for statements in notes to financial statements: RMB yuan
1. Consolidated Balance Sheet
Prepared by: China Fangda Group Co., Ltd.
In RMB
| Item | June 30, 2019 | December 31, 2018 |
| Current asset: | ||
| Monetary capital | 1,072,726,726.45 | 1,389,062,083.76 |
| Settlement provision | ||
| Outgoing call loan | ||
| Transactional financial assets | 200,121,506.67 | |
| Financial assets measured at fair value with variations accounted into current income account | ||
| Derivative financial assets | 17,375.00 | |
| Notes receivable | 85,655,871.18 | 140,139,692.84 |
| Account receivable | 2,118,904,495.79 | 1,920,075,031.85 |
| Receivable financing | ||
| Prepayment | 73,540,307.08 | 46,454,844.74 |
| Insurance receivable | ||
| Reinsurance receivable | ||
| Provisions of Reinsurance contracts receivable | ||
| Other receivables | 162,536,536.53 | 139,990,188.26 |
| Including: interest receivable | 366,666.66 |
| Dividend receivable | ||
| Repurchasing of financial assets | ||
| Inventory | 750,395,540.06 | 651,405,832.29 |
| Contract assets | ||
| Assets held for sales | ||
| Non-current assets due in 1 year | ||
| Other current assets | 114,294,388.81 | 51,698,111.14 |
| Total current assets | 4,578,192,747.57 | 4,338,825,784.88 |
| Non-current assets: | ||
| Loan and advancement provided | ||
| Debt investment | ||
| Sellable financial assets | 21,674,008.23 | |
| Other debt investment | ||
| Investment held until mature | ||
| Long-term receivable | ||
| Long-term share equity investment | 69,779,924.33 | 70,105,657.88 |
| Investment in other equity tools | 21,674,008.23 | |
| Other non-current financial assets | ||
| Investment real estate | 5,285,303,323.58 | 5,256,442,406.63 |
| Fixed assets | 431,948,450.66 | 455,274,241.83 |
| Construction in process | 90,993,650.25 | 58,269,452.72 |
| Productive biological assets | ||
| Gas & petrol | ||
| Use right assets | ||
| Intangible assets | 79,441,627.18 | 80,313,240.67 |
| R&D expense | ||
| Goodwill | ||
| Long-term amortizable expenses | 2,476,634.82 | 2,114,331.46 |
| Deferred income tax assets | 357,050,574.16 | 356,474,925.76 |
| Other non-current assets | 23,941,839.67 | 19,360,083.67 |
| Total of non-current assets | 6,362,610,032.88 | 6,320,028,348.85 |
| Total of assets | 10,940,802,780.45 | 10,658,854,133.73 |
| Current liabilities | ||
| Short-term loans | 900,000,000.00 | 208,000,000.00 |
| Loans from Central Bank | ||
| Call loan received | ||
| Transactional financial liabilities | ||
| Financial liabilities measured at fair value with variations accounted into current income account | ||
| Derivative financial liabilities | 1,625,725.00 | |
| Notes payable | 533,557,330.40 | 507,864,518.19 |
| Account payable | 953,298,396.58 | 1,039,630,798.64 |
| Prepayment received | 132,431,063.25 | 278,577,848.54 |
| Selling of repurchased financial assets | ||
| Deposit received and held for others | ||
| Entrusted trading of securities | ||
| Entrusted selling of securities | ||
| Employees’ wage payable | 23,925,424.42 | 44,513,062.17 |
| Taxes payable | 21,432,798.90 | 107,709,999.19 |
| Other payables | 836,350,288.81 | 813,118,699.84 |
| Including: interest payable | 2,423,014.69 | 2,098,971.44 |
| Dividend payable | ||
| Fees and commissions payable | ||
| Reinsurance fee payable | ||
| Contract liabilities | ||
| Liabilities held for sales | ||
| Non-current liabilities due in 1 year | 800,000,000.00 | 200,000,000.00 |
| Other current liabilities | 10,023,641.11 | 9,328,682.25 |
| Total current liabilities | 4,211,018,943.47 | 3,210,369,333.82 |
| Non-current liabilities: | ||
| Insurance contract provision | ||
| Long-term loans | 593,978,153.39 | 1,193,978,153.39 |
| Bond payable | ||
| Including: preferred stock | ||
| Perpetual bond |
| Lease liabilities | ||
| Long-term payable | ||
| Long-term employees’ wage payable | ||
| Anticipated liabilities | 6,672,052.01 | 6,831,162.99 |
| Deferred earning | 10,956,741.32 | 10,401,161.30 |
| Deferred income tax liabilities | 1,044,043,233.97 | 1,042,086,700.35 |
| Other non-current liabilities | ||
| Total of non-current liabilities | 1,655,650,180.69 | 2,253,297,178.03 |
| Total liabilities | 5,866,669,124.16 | 5,463,666,511.85 |
| Owner’s equity: | ||
| Share capital | 1,123,384,189.00 | 1,155,481,686.00 |
| Other equity tools | ||
| Including: preferred stock | ||
| Perpetual bond | ||
| Capital reserves | 1,454,191.59 | 1,454,191.59 |
| Less: Shares in stock | 10,831,437.66 | |
| Other miscellaneous income | 3,605,436.34 | 7,382,087.59 |
| Special reserves | ||
| Surplus reserves | 54,042,195.07 | 120,475,221.40 |
| Common risk provisions | ||
| Retained profit | 3,841,302,110.76 | 3,921,225,872.96 |
| Total of owner’s equity belong to the parent company | 5,023,788,122.76 | 5,195,187,621.88 |
| Minor shareholders’ equity | 50,345,533.53 | |
| Total of owners’ equity | 5,074,133,656.29 | 5,195,187,621.88 |
| Total of liabilities and owner’s interest | 10,940,802,780.45 | 10,658,854,133.73 |
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua
2. Balance Sheet of the Parent Company
In RMB
| Item | June 30, 2019 | December 31, 2018 |
| Current asset: | ||
| Monetary capital | 101,688,461.26 | 410,118,157.55 |
| Transactional financial assets | ||
| Financial assets measured at fair value with variations accounted into current income account | ||
| Derivative financial assets | ||
| Notes receivable | 200,000,000.00 | 200,000,000.00 |
| Account receivable | 14,565.67 | 471,039.12 |
| Receivable financing | ||
| Prepayment | 1,661,827.83 | 6,733,047.16 |
| Other receivables | 1,320,828,678.84 | 822,543,653.04 |
| Including: interest receivable | ||
| Dividend receivable | 100,000,000.00 | 100,000,000.00 |
| Inventory | ||
| Contract assets | ||
| Assets held for sales | ||
| Non-current assets due in 1 year | ||
| Other current assets | 6,711,425.57 | 919,388.18 |
| Total current assets | 1,630,904,959.17 | 1,440,785,285.05 |
| Non-current assets: | ||
| Debt investment | ||
| Sellable financial assets | 21,674,008.23 | |
| Other debt investment | ||
| Investment held until mature | ||
| Long-term receivable | ||
| Long-term share equity investment | 1,013,339,495.35 | 983,339,494.35 |
| Investment in other equity tools | 21,674,008.23 | |
| Other non-current financial assets | ||
| Investment real estate | 309,189,866.37 | 309,189,866.37 |
| Fixed assets | 52,804,391.71 | 53,784,811.23 |
| Construction in process | ||
| Productive biological assets | ||
| Gas & petrol | ||
| Use right assets | ||
| Intangible assets | 1,961,314.57 | 2,112,301.97 |
| R&D expense |
| Goodwill | ||
| Long-term amortizable expenses | 777,499.64 | 917,499.68 |
| Deferred income tax assets | 38,972,942.37 | 34,555,598.81 |
| Other non-current assets | ||
| Total of non-current assets | 1,438,719,518.24 | 1,405,573,580.64 |
| Total of assets | 3,069,624,477.41 | 2,846,358,865.69 |
| Current liabilities | ||
| Short-term loans | 500,000,000.00 | 200,000,000.00 |
| Transactional financial liabilities | ||
| Financial liabilities measured at fair value with variations accounted into current income account | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Account payable | 606,941.85 | 676,941.85 |
| Prepayment received | 694,791.63 | 733,274.16 |
| Contract liabilities | ||
| Employees’ wage payable | 1,001,120.09 | 2,145,763.39 |
| Taxes payable | 819,162.49 | 341,004.65 |
| Other payables | 450,775,536.65 | 300,006,406.51 |
| Including: interest payable | 1,162,456.96 | 740,208.33 |
| Dividend payable | ||
| Liabilities held for sales | ||
| Non-current liabilities due in 1 year | 500,000,000.00 | |
| Other current liabilities | ||
| Total current liabilities | 1,453,897,552.71 | 503,903,390.56 |
| Non-current liabilities: | ||
| Long-term loans | 100,000,000.00 | 500,000,000.00 |
| Bond payable | ||
| Including: preferred stock | ||
| Perpetual bond | ||
| Lease liabilities | ||
| Long-term payable | ||
| Long-term employees’ wage |
| payable | ||
| Anticipated liabilities | ||
| Deferred earning | ||
| Deferred income tax liabilities | 64,030,014.06 | 64,130,617.41 |
| Other non-current liabilities | ||
| Total of non-current liabilities | 164,030,014.06 | 564,130,617.41 |
| Total liabilities | 1,617,927,566.77 | 1,068,034,007.97 |
| Owner’s equity: | ||
| Share capital | 1,123,384,189.00 | 1,155,481,686.00 |
| Other equity tools | ||
| Including: preferred stock | ||
| Perpetual bond | ||
| Capital reserves | 360,835.52 | 360,835.52 |
| Less: Shares in stock | 10,831,437.66 | |
| Other miscellaneous income | 3,590,127.88 | 8,756,553.46 |
| Special reserves | ||
| Surplus reserves | 54,042,195.07 | 120,475,221.40 |
| Retained profit | 270,319,563.17 | 504,081,999.00 |
| Total of owners’ equity | 1,451,696,910.64 | 1,778,324,857.72 |
| Total of liabilities and owner’s interest | 3,069,624,477.41 | 2,846,358,865.69 |
3. Consolidated Income Statement
In RMB
| Item | H1 2019 | H1 2018 |
| 1. Total revenue | 1,425,890,946.99 | 1,442,050,896.53 |
| Incl. Business income | 1,425,890,946.99 | 1,442,050,896.53 |
| Interest income | ||
| Insurance fee earned | ||
| Fee and commission received | ||
| 2. Total business cost | 1,281,585,400.17 | 1,172,057,419.48 |
| Incl. Business cost | 1,066,065,970.56 | 935,486,175.73 |
| Interest expense | ||
| Fee and commission paid |
| Insurance discharge payment | ||
| Net claim amount paid | ||
| Net insurance policy reserves provided | ||
| Insurance policy dividend paid | ||
| Reinsurance expenses | ||
| Taxes and surcharges | 41,481,000.07 | 101,204,195.03 |
| Sales expense | 27,175,638.50 | 27,060,141.24 |
| Administrative expense | 82,678,777.56 | 66,539,185.89 |
| R&D cost | 14,702,673.12 | 7,995,399.91 |
| Financial expenses | 49,481,340.36 | 33,772,321.68 |
| Including: interest cost | 40,476,886.48 | 32,139,251.82 |
| Interest income | 2,439,090.91 | 3,715,935.93 |
| Add: other gains | 4,001,450.51 | 2,699,191.58 |
| Investment gains (―-‖ for loss) | 4,056,397.16 | 26,244,762.41 |
| Incl. Investment gains from affiliates and joint ventures | -325,733.55 | -1,071,000.77 |
| Financial assets derecognised as a result of amortized cost ("-" for loss) | ||
| Exchange gains ("-" for loss) | ||
| Net open hedge gains (―-‖ for loss) | ||
| Gains from change of fair value (―-― for loss) | 121,506.67 | -8,896,637.25 |
| Credit impairment ("-" for loss) | -4,369,660.38 | |
| Investment impairment loss ("-" for loss) | -1,854,963.05 | |
| Investment gains ("-" for loss) | -27,108.78 | -1,551,865.58 |
| 3. Operational profit ("-" for loss) | 148,088,132.00 | 286,633,965.16 |
| Plus: non-operational income | 4,873,892.15 | 7,066,038.41 |
| Less: non-operational expenditure | 378,565.80 | 522,160.43 |
| 4. Gross profit ("-" for loss) | 152,583,458.35 | 293,177,843.14 |
| Less: Income tax expenses | 24,019,259.71 | 63,046,179.95 |
| 5. Net profit ("-" for net loss) | 128,564,198.64 | 230,131,663.19 |
| (1) By operating consistency | ||
| 1. Net profit from continuous operation ("-" for net loss) | 128,570,716.39 | 230,131,663.19 |
| 2. Net profit from discontinuous operation ("-" for net loss) | -6,517.75 | |
| (2) By ownership | ||
| 1. Net profit attributable to the owners of parent company | 128,581,755.01 | 230,131,663.19 |
| 2. Minor shareholders’ equity | -17,556.37 | |
| 6. After-tax net amount of other misc. incomes | 1,389,774.33 | -1,879,756.17 |
| After-tax net amount of other misc. incomes attributed to parent's owner | 1,389,774.33 | -1,879,756.17 |
| (1) Other misc. incomes that cannot be re-classified into gain and loss | ||
| 1. Re-measure the change in the defined benefit plan | ||
| 2. Other comprehensive income that cannot be transferred to profit or loss under the equity method | ||
| 3. Fair value change of investment in other equity tools | ||
| 4. Fair value change of the company's credit risk | ||
| 5. Others | ||
| (2) Other misc. incomes that will be re-classified into gain and loss | 1,389,774.33 | -1,879,756.17 |
| 1. Other comprehensive income that can be transferred to profit or loss under the equity method | ||
| 2. Fair value change of other debt investment | ||
| 3. Change in the fair value of financial asset for sale | ||
| 4. Gains and losses from changes in fair value of available-for-sale |
| financial assets | ||
| 5. Held-to-mature investment reclassified as gain and loss in the financial assets for sales | ||
| 6. Other credit investment credit impairment provisions | ||
| 7. Cash flow hedge reserve | 1,396,635.00 | -1,839,001.25 |
| 8. Translation difference of foreign exchange statement | -6,860.67 | -40,754.92 |
| 9. Others | ||
| After-tax net of other misc. income attributed to minority shareholders | ||
| 7. Total of misc. incomes | 129,953,972.97 | 228,251,907.02 |
| Total of misc. incomes attributable to the owners of the parent company | 129,971,529.34 | 228,251,907.02 |
| Total misc gains attributable to the minor shareholders | -17,556.37 | |
| 8. Earnings per share: | ||
| (1) Basic earnings per share | 0.11 | 0.19 |
| (2) Diluted earnings per share | 0.11 | 0.19 |
Net profit contributed by entities merged under common control in the report period was RMB0.00, net profit realized by partiesmerged during the previous period is RMB0.00.Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua
4. Income Statement of the Parent Company
In RMB
| Item | H1 2019 | H1 2018 |
| 1. Turnover | 17,142,022.88 | 15,112,290.20 |
| Less: Operation cost | 3,496,588.06 | 673,578.25 |
| Taxes and surcharges | 645,703.49 | 650,802.82 |
| Sales expense | ||
| Administrative expense | 11,286,569.85 | 10,133,470.85 |
| R&D cost | ||
| Financial expenses | 21,369,380.01 | 7,548,692.03 |
| Including: interest cost | 17,322,986.12 | 8,550,029.19 |
| Interest income | 351,128.89 | 1,581,410.05 |
| Add: other gains | 234,066.99 | 114,556.59 |
| Investment gains (―-‖ for loss) | 1,155,183.42 | 8,138,483.22 |
| Incl. Investment gains from affiliates and joint ventures | ||
| Financial assets derecognised as a result of amortized cost ("-" for loss) | ||
| Net open hedge gains (―-‖ for loss) | ||
| Gains from change of fair value (―-― for loss) | -3,429,128.73 | |
| Credit impairment ("-" for loss) | 4,732.39 | |
| Investment impairment loss ("-" for loss) | -98,676.88 | |
| Investment gains ("-" for loss) | -574.06 | |
| 2. Operational profit (―-‖ for loss) | -18,262,235.73 | 830,406.39 |
| Plus: non-operational income | 13,947.68 | 258,644.66 |
| Less: non-operational expenditure | 106,388.64 | 738.00 |
| 3. Gross profit (―-‖ for loss) | -18,354,676.69 | 1,088,313.05 |
| Less: Income tax expenses | -4,545,338.46 | 1,582,341.85 |
| 4. Net profit (―-‖ for net loss) | -13,809,338.23 | -494,028.80 |
| (1) Net profit from continuous operation ("-" for net loss) | -13,809,338.23 | -494,028.80 |
| (2) Net profit from discontinuous operation ("-" for net loss) | ||
| 5. After-tax net amount of other misc. incomes | ||
| (1) Other misc. incomes that cannot be re-classified into gain and loss | ||
| 1. Re-measure the change in the defined benefit plan | ||
| 2. Other comprehensive income that cannot be transferred to profit or loss under the equity method | ||
| 3. Fair value change of investment in other equity tools |
| 4. Fair value change of the company's credit risk | ||
| 5. Others | ||
| (2) Other misc. incomes that will be re-classified into gain and loss | ||
| 1. Other comprehensive income that can be transferred to profit or loss under the equity method | ||
| 2. Fair value change of other debt investment | ||
| 3. Change in the fair value of financial asset for sale | ||
| 4. Gains and losses from changes in fair value of available-for-sale financial assets | ||
| 5. Held-to-mature investment reclassified as gain and loss in the financial assets for sales | ||
| 6. Other credit investment credit impairment provisions | ||
| 7. Cash flow hedge reserve | ||
| 8. Translation difference of foreign exchange statement | ||
| 9. Others | ||
| 6. Total of misc. incomes | -13,809,338.23 | -494,028.80 |
| 7. Earnings per share: | ||
| (1) Basic earnings per share | ||
| (2) Diluted earnings per share |
5. Consolidated Cash Flow Statement
In RMB
| Item | H1 2019 | H1 2018 |
| 1. Net cash flow from business operations: | ||
| Cash received from sales of products and providing of services | 1,201,792,721.87 | 1,344,633,305.24 |
| Net increase of customer deposits and capital kept for brother company |
| Net increase of loans from central bank | ||
| Net increase of inter-bank loans from other financial bodies | ||
| Cash received against original insurance contract | ||
| Net cash received from reinsurance business | ||
| Net increase of client deposit and investment | ||
| Cash received as interest, processing fee, and commission | ||
| Net increase of inter-bank fund received | ||
| Net increase of repurchasing business | ||
| Net cash received from trading securities | ||
| Tax refunded | 1,495,878.35 | 876,405.15 |
| Other cash received from business operation | 48,007,747.43 | 243,292,723.31 |
| Sub-total of cash inflow from business operations | 1,251,296,347.65 | 1,588,802,433.70 |
| Cash paid for purchasing products and services | 977,060,414.15 | 956,677,112.92 |
| Net increase of client trade and advance | ||
| Net increase of savings in central bank and brother company | ||
| Cash paid for original contract claim | ||
| Net increase in financial assets held for trading purposes | ||
| Net increase in funds dismantled | ||
| Cash paid for interest, processing fee and commission | ||
| Cash paid for policy dividend | ||
| Cash paid to and for the staff | 162,220,114.55 | 141,086,415.75 |
| Taxes paid | 177,525,390.09 | 208,947,437.06 |
| Other cash paid for business activities | 307,215,431.97 | 313,517,735.61 |
| Sub-total of cash outflow from business operations | 1,624,021,350.76 | 1,620,228,701.34 |
| Cash flow generated by business operations, net | -372,725,003.11 | -31,426,267.64 |
| 2. Cash flow generated by investment: | ||
| Cash received from investment recovery | 2,093,521,250.01 | 4,675,800,000.00 |
| Cash received as investment profit | 21,362,317.22 | 28,989,224.36 |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | 13,165,854.60 | 9,501,692.00 |
| Net cash received from disposal of subsidiaries or other operational units | ||
| Other investment-related cash received | ||
| Sub-total of cash inflow generated from investment | 2,128,049,421.83 | 4,714,290,916.36 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 90,816,069.59 | 45,443,864.13 |
| Cash paid as investment | 2,555,019,000.00 | 4,712,583,785.00 |
| Net increase of loan against pledge | ||
| Net cash paid for acquiring subsidiaries and other operational units | 61,934,830.31 | |
| Other cash paid for investment | ||
| Subtotal of cash outflows | 2,707,769,899.90 | 4,758,027,649.13 |
| Cash flow generated by investment activities, net | -579,720,478.07 | -43,736,732.77 |
| 3. Cash flow generated by financing activities: | ||
| Cash received from investment | ||
| Incl. Cash received from investment attracted by subsidiaries from minority shareholders | ||
| Cash received from borrowed loans | 800,000,000.00 | 508,000,000.00 |
| Cash received from bond placing | ||
| Other cash received from financing activities | 39,406.61 | |
| Subtotal of cash inflow from financing | 800,039,406.61 | 508,000,000.00 |
| activities | ||
| Cash paid to repay debts | 108,000,000.00 | 200,000,000.00 |
| Cash paid as dividend, profit, or interests | 275,410,279.99 | 213,616,393.31 |
| Incl. Dividend and profit paid by subsidiaries to minority shareholders | ||
| Other cash paid for financing activities | 40,000,000.00 | |
| Subtotal of cash outflow from financing activities | 423,410,279.99 | 413,616,393.31 |
| Net cash flow generated by financing activities | 376,629,126.62 | 94,383,606.69 |
| 4. Influence of exchange rate changes on cash and cash equivalents | -229,009.27 | 1,005,803.87 |
| 5. Net increase in cash and cash equivalents | -576,045,363.83 | 20,226,410.15 |
| Plus: Balance of cash and cash equivalents at the beginning of term | 956,190,890.68 | 931,285,535.55 |
| 6. Balance of cash and cash equivalents at the end of the period | 380,145,526.85 | 951,511,945.70 |
6. Cash Flow Statement of the Parent Company
In RMB
| Item | H1 2019 | H1 2018 |
| 1. Net cash flow from business operations: | ||
| Cash received from sales of products and providing of services | 14,039,967.56 | 147,110,597.39 |
| Tax refunded | ||
| Other cash received from business operation | 1,674,530,421.33 | 882,838,625.05 |
| Sub-total of cash inflow from business operations | 1,688,570,388.89 | 1,029,949,222.44 |
| Cash paid for purchasing products and services | 1,824,577.30 | 409,933.49 |
| Cash paid to and for the staff | 8,465,407.93 | 7,664,913.27 |
| Taxes paid | 1,250,265.96 | 14,786,626.11 |
| Other cash paid for business activities | 2,021,264,885.71 | 1,276,945,197.63 |
| Sub-total of cash outflow from business operations | 2,032,805,136.90 | 1,299,806,670.50 |
| Cash flow generated by business operations, net | -344,234,748.01 | -269,857,448.06 |
| 2. Cash flow generated by investment: | ||
| Cash received from investment recovery | 710,000,000.00 | 1,879,880,000.00 |
| Cash received as investment profit | 1,155,183.42 | 9,159,483.22 |
| Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets | ||
| Net cash received from disposal of subsidiaries or other operational units | ||
| Other investment-related cash received | 10,000,000.00 | |
| Sub-total of cash inflow generated from investment | 711,155,183.42 | 1,899,039,483.22 |
| Cash paid for construction of fixed assets, intangible assets and other long-term assets | 50,698.00 | 421,910.00 |
| Cash paid as investment | 746,000,001.00 | 1,917,870,000.00 |
| Net cash paid for acquiring subsidiaries and other operational units | ||
| Other cash paid for investment | ||
| Subtotal of cash outflows | 746,050,699.00 | 1,918,291,910.00 |
| Cash flow generated by investment activities, net | -34,895,515.58 | -19,252,426.78 |
| 3. Cash flow generated by financing activities: | ||
| Cash received from investment | ||
| Cash received from borrowed loans | 400,000,000.00 | 500,000,000.00 |
| Cash received from bond placing | ||
| Other cash received from financing activities | 39,406.61 | |
| Subtotal of cash inflow from financing activities | 400,039,406.61 | 500,000,000.00 |
| Cash paid to repay debts |
| Cash paid as dividend, profit, or interests | 241,065,709.32 | 180,947,316.65 |
| Other cash paid for financing activities | ||
| Subtotal of cash outflow from financing activities | 241,065,709.32 | 180,947,316.65 |
| Net cash flow generated by financing activities | 158,973,697.29 | 319,052,683.35 |
| 4. Influence of exchange rate changes on cash and cash equivalents | 405.76 | |
| 5. Net increase in cash and cash equivalents | -220,156,160.54 | 29,942,808.51 |
| Plus: Balance of cash and cash equivalents at the beginning of term | 281,594,621.80 | 310,049,329.68 |
| 6. Balance of cash and cash equivalents at the end of the period | 61,438,461.26 | 339,992,138.19 |
7. Statement of Change in Owners’ Equity (Consolidated)
Amount of the Current Term
In RMB
| Item | H1 2019 | ||||||||||||||
| Owners’ Equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||||
| Share capital | Other equity tools | Capital reserves | Less: Shares in stock | Other miscellaneous income | Special reserves | Surplus reserves | Common risk provisions | Retained profit | Others | Subtotal | |||||
| Preferred share | Perpetual bond | Others | |||||||||||||
| 1. Balance at the end of last year | 1,155,481,686.00 | 1,454,191.59 | 10,831,437.66 | 7,382,087.59 | 120,475,221.40 | 3,921,225,872.96 | 5,195,187,621.88 | 5,195,187,621.88 | |||||||
| Plus: Changes in accounting policies | -5,166,425.58 | 524,860.03 | 16,171,320.58 | 11,529,755.03 | 11,529,755.03 | ||||||||||
| Correction of previous errors | |||||||||||||||
| Consolidation of entities under common control | |||||||||||||||
| Others | |||||||||||||||
| 2. Balance at the beginning of current year | 1,155,481,686.00 | 1,454,191.59 | 10,831,437.66 | 2,215,662.01 | 121,000,081.43 | 3,937,397,193.54 | 5,206,717,376.91 | 5,206,717,376.91 | |||||||
| 3. Change amount in the current period (―-― for decrease) | -32,097,497.00 | -10,831,437.66 | 1,389,774.33 | -66,957,886.36 | -96,095,082.78 | -182,929,254.15 | 50,345,533.53 | -132,583,720.62 | |||||||
| (1) Total of misc. incomes | 1,389,774.33 | 128,581,755.01 | 129,971,529.34 | -17,556.37 | 129,953,972.97 | ||||||||||
| (2) Investment or decreasing of capital by owners | -32,097,497.00 | -10,831,437.66 | -66,957,886.36 | -88,223,945.70 | 50,363,089.90 | -37,860,855.80 | |||||||||
| 1. Common shares invested by owners | -32,097,497.00 | -10,831,437.66 | -66,957,886.36 | -88,223,945.70 | 50,363,089.90 | -37,860,855.80 | |||||||||
| 2. Capital contributed by other equity instrument holders | |||||||||||||||
| 3. Amount of shares paid and accounted as owners' equity | |||||||||||||||
| 4. Others | |||||||||||||||
| (3) Profit allotment | -224,676,837.80 | -224,676,837.80 | -224,676,837.80 | ||||||||||||
| 1. Provision of surplus reserves | |||||||||||||||
| 2. Common risk provision |
| 3. Distribution to owners (or shareholders) | -224,676,837.80 | -224,676,837.80 | -224,676,837.80 | ||||||||||||
| 4. Others | |||||||||||||||
| (4) Internal transferring of owners’ equity | |||||||||||||||
| 1. Capitalizing of capital reserves (or share capital) | |||||||||||||||
| 2. Capitalizing of surplus reserves (or share capital) | |||||||||||||||
| 3. Surplus reserves used to cover losses | |||||||||||||||
| 4. 4. Retained gain transferred due to change in set benefit program | |||||||||||||||
| 5. Other miscellaneous income | |||||||||||||||
| 6. Others | |||||||||||||||
| (5) Special reserves | |||||||||||||||
| 1. Provided this year | |||||||||||||||
| 2. Used this period | |||||||||||||||
| (6) Others | |||||||||||||||
| 4. Balance at the end of this period | 1,123,384,189.00 | 1,454,191.59 | 3,605,436.34 | 54,042,195.07 | 3,841,302,110.76 | 5,023,788,122.76 | 50,345,533.53 | 5,074,133,656.29 |
Amount of the Previous Term
In RMB
| Item | H1 2018 | ||||||||||||||
| Owners’ Equity Attributable to the Parent Company | Minor shareholders’ equity | Total of owners’ equity | |||||||||||||
| Share capital | Other equity tools | Capital reserves | Less: Shares in stock | Other miscellaneous income | Special reserves | Surplus reserves | Common risk provisions | Retained profit | Others | Subtotal | |||||
| Preferred share | Perpetual bond | Others | |||||||||||||
| 1. Balance at the end of last year | 1,183,642,254.00 | 72,829,484.96 | 8,585,847.99 | 110,690,396.65 | 1,863,191,218.58 | 3,238,939,202.18 | 3,238,939,202.18 | ||||||||
| Plus: Changes in accounting policies | |||||||||||||||
| Correction of previous errors | |||||||||||||||
| Consolidation of entities under common control | |||||||||||||||
| Others | |||||||||||||||
| 2. Balance at the beginning of current year | 1,183,642,254.00 | 72,829,484.96 | 8,585,847.99 | 110,690,396.65 | 1,863,191,218.58 | 3,238,939,202.18 | 3,238,939,202.18 | ||||||||
| 3. Change amount in the current period (―-― for decrease) | -1,879,756.17 | 52,585,325.09 | 50,705,568.92 | 50,705,568.92 | |||||||||||
| (1) Total of misc. incomes | -1,879,756.17 | 230,131,663.19 | 228,251,907.02 | 228,251,907.02 | |||||||||||
| (2) Investment or decreasing of capital by owners | |||||||||||||||
| 1. Common shares invested by owners | |||||||||||||||
| 2. Capital contributed by other equity instrument holders | |||||||||||||||
| 3. Amount of shares paid and accounted as owners' equity | |||||||||||||||
| 4. Others | |||||||||||||||
| (3) Profit allotment | -177,546,338.10 | -177,546,338.10 | -177,546,338.10 | ||||||||||||
| 1. Provision of surplus reserves | |||||||||||||||
| 2. Common risk provision | |||||||||||||||
| 3. Distribution to owners (or shareholders) | -177,546,338.10 | -177,546,338.10 | -177,546,338.10 | ||||||||||||
| 4. Others | |||||||||||||||
| (4) Internal transferring of owners’ equity | |||||||||||||||
| 1. Capitalizing of capital reserves (or share capital) | |||||||||||||||
| 2. Capitalizing of surplus reserves (or share capital) | |||||||||||||||
| 3. Surplus reserves used to cover losses | |||||||||||||||
| 4. 4. Retained gain transferred |
| due to change in set benefit program | |||||||||||||||
| 5. Other miscellaneous income | |||||||||||||||
| 6. Others | |||||||||||||||
| (5) Special reserves | |||||||||||||||
| 1. Provided this year | |||||||||||||||
| 2. Used this period | |||||||||||||||
| (6) Others | |||||||||||||||
| 4. Balance at the end of this period | 1,183,642,254.00 | 72,829,484.96 | 6,706,091.82 | 110,690,396.65 | 1,915,776,543.67 | 3,289,644,771.10 | 3,289,644,771.10 |
8. Statement of Change in Owners’ Equity (Parent Company)
Amount of the Current Term
In RMB
| Item | H1 2019 | |||||||||||
| Share capital | Other equity tools | Capital reserves | Less: Shares in stock | Other miscellaneous income | Special reserves | Surplus reserves | Retained profit | Others | Total of owners’ equity | |||
| Preferred share | Perpetual bond | Others | ||||||||||
| 1. Balance at the end of last year | 1,155,481,686.00 | 360,835.52 | 10,831,437.66 | 8,756,553.46 | 120,475,221.40 | 504,081,999.00 | 1,778,324,857.72 | |||||
| Plus: Changes in accounting policies | -5,166,425.58 | 524,860.03 | 4,723,740.20 | 82,174.65 | ||||||||
| Correction of previous errors | ||||||||||||
| Others | ||||||||||||
| 2. Balance at the | 1,155,4 | 360,835. | 10,831,4 | 3,590,12 | 121,000, | 508,80 | 1,778,407, | |||||
| beginning of current year | 81,686.00 | 52 | 37.66 | 7.88 | 081.43 | 5,739.20 | 032.37 | |||||
| 3. Change amount in the current period (―-― for decrease) | -32,097,497.00 | -10,831,437.66 | -66,957,886.36 | -238,486,176.03 | -326,710,121.73 | |||||||
| (1) Total of misc. incomes | -13,809,338.23 | -13,809,338.23 | ||||||||||
| (2) Investment or decreasing of capital by owners | -32,097,497.00 | -10,831,437.66 | -66,957,886.36 | -88,223,945.70 | ||||||||
| 1. Common shares invested by owners | -32,097,497.00 | -10,831,437.66 | -66,957,886.36 | -88,223,945.70 | ||||||||
| 2. Capital contributed by other equity instrument holders | ||||||||||||
| 3. Amount of shares paid and accounted as owners' equity | ||||||||||||
| 4. Others | ||||||||||||
| (3) Profit allotment | -224,676,837.80 | -224,676,837.80 | ||||||||||
| 1. Provision of surplus reserves | ||||||||||||
| 2. Distribution to owners (or shareholders) | -224,676,837.80 | -224,676,837.80 | ||||||||||
| 3. Others | ||||||||||||
| (4) Internal transferring of owners’ equity | ||||||||||||
| 1. Capitalizing of capital |
| reserves (or share capital) | ||||||||||||
| 2. Capitalizing of surplus reserves (or share capital) | ||||||||||||
| 3. Surplus reserves used to cover losses | ||||||||||||
| 4. Retained gain transferred due to change in set benefit program | ||||||||||||
| 5. Other miscellaneous income | ||||||||||||
| 6. Others | ||||||||||||
| (5) Special reserves | ||||||||||||
| 1. Provided this year | ||||||||||||
| 2. Used this period | ||||||||||||
| (6) Others | ||||||||||||
| 4. Balance at the end of this period | 1,123,384,189.00 | 360,835.52 | 3,590,127.88 | 54,042,195.07 | 270,319,563.17 | 1,451,696,910.64 |
Amount of the Previous Term
In RMB
| Item | H1 2018 | |||||||||||
| Share capital | Other equity tools | Capital reserves | Less: Shares in stock | Other miscellaneous income | Special reserves | Surplus reserves | Retained profit | Others | Total of owners’ equity | |||
| Preferred share | Perpetual bond | Others | ||||||||||
| 1. Balance at the end of last year | 1,183,642,254.00 | 71,736,128.89 | 8,756,553.46 | 110,690,396.65 | 586,376,124.33 | 1,961,201,457.33 | ||||||
| Plus: Changes in | ||||||||||||
| accounting policies | ||||||||||||
| Correction of previous errors | ||||||||||||
| Others | ||||||||||||
| 2. Balance at the beginning of current year | 1,183,642,254.00 | 71,736,128.89 | 8,756,553.46 | 110,690,396.65 | 586,376,124.33 | 1,961,201,457.33 | ||||||
| 3. Change amount in the current period (―-― for decrease) | -178,040,366.90 | -178,040,366.90 | ||||||||||
| (1) Total of misc. incomes | -494,028.80 | -494,028.80 | ||||||||||
| (2) Investment or decreasing of capital by owners | ||||||||||||
| 1. Common shares invested by owners | ||||||||||||
| 2. Capital contributed by other equity instrument holders | ||||||||||||
| 3. Amount of shares paid and accounted as owners' equity | ||||||||||||
| 4. Others | ||||||||||||
| (3) Profit allotment | -177,546,338.10 | -177,546,338.10 | ||||||||||
| 1. Provision of surplus reserves | ||||||||||||
| 2. Distribution to owners (or | -177,546,338.10 | -177,546,338.10 |
| shareholders) | ||||||||||||
| 3. Others | ||||||||||||
| (4) Internal transferring of owners’ equity | ||||||||||||
| 1. Capitalizing of capital reserves (or share capital) | ||||||||||||
| 2. Capitalizing of surplus reserves (or share capital) | ||||||||||||
| 3. Surplus reserves used to cover losses | ||||||||||||
| 4. Retained gain transferred due to change in set benefit program | ||||||||||||
| 5. Other miscellaneous income | ||||||||||||
| 6. Others | ||||||||||||
| (5) Special reserves | ||||||||||||
| 1. Provided this year | ||||||||||||
| 2. Used this period | ||||||||||||
| (6) Others | ||||||||||||
| 4. Balance at the end of this period | 1,183,642,254.00 | 71,736,128.89 | 8,756,553.46 | 110,690,396.65 | 408,335,757.43 | 1,783,161,090.43 |
III. General Information
China Fangda Group Co., Ltd. (hereinafter referred to as "the Company") was approved in October 1995 by the General Office of theShenzhen Municipal People's Government with the letter of Shenfu Office (1995) No. 194, in the original "Shenzhen FangdaBuilding Materials Co., Ltd." on the basis of the establishment of the fundraising method. The unified social credit code is:
91440300192448589C; registered address: Fangda Building, Kejinan Road 12, High-tech Zone, Shenzhen. Mr. Xiong Jianming is
the legal representative.The Company issued foreign currency shares (B shares) and local currency shares (A shares) and listed in November 1995 and April1996 respectively in Shenzhen Stock Exchange.The Company has established a corporate governance structure that comprises shareholders’ meeting, board of directors andsupervisory committee. Currently, the Company sets up the President Office, Administrative Department, HR Department, EnterpriseManagement Department, Financial Department, Audit and Supervisory Department, Securities Department, Technology Departmentand IT Department and has established subsidiaries ds including Fangda Decoration, Fangda Automatic, Fangda New Material,Fangda Property and Fangda New Energy.The business nature and main business activities of the Company and its subsidiaries (hereinafter referred to as ―the Group‖) include
(1) curtain wall division, research and development, design, production, construction and sales of building curtain walls and materials;
(2) rail transit segment , research and development, design, production, construction and sales of subway screen doors; (3) real estatedivision, engaged in real estate development and management, property management on land legally acquired right; (4) new energydivision, photovoltaic power station, photovoltaic R&D, design, production, construction, operation and sales of building integration(BIPV).The financial statements and notes are approved at the 17th meeting of the 8th term of the Board held on August 16, 2019.
The consolidation scope for the consolidated financial statements includes the Company and all subsidiaries. During the period,Fangda Southeast Asia Company Limited was newly established, and the merger of enterprises under the same control increasedShenzhen Zhongrong Litai Investment Co., Ltd., adding 2 subsidiaries in the current consolidated statement. In this period, ShenzhenKexunda Software Co., Ltd., an indirect controlled subsidiary, was canceled, so the current consolidated statement reduced onesubsidiary. For details, please refer to the ―Note VIII. Changes in the scope of consolidation‖ and ―Note IX. Interests in otherentities‖.
IV. Basis for the preparation of financial statements
1. Preparation basis
The financial statements are prepared according to the enterprise financial standard and guidelines, interpretation and other relatedregulations (―the Standard‖) issued by the Ministry of Finance. In addition, the Group also complies with the "Regulations on theCompilation and Submission of Information Disclosures by Companies That Offer Securities to the Public No. 15 - GeneralProvisions on Financial Reporting" (revised in 2014) and the "Rules for the Compilation and Submission of Information Disclosuresto Companies That Publicly Issue Securities" No. 11 - Special Provisions on the Notes to the Financial Statements of CompaniesEngaged in Real Estate Development Disclosure of Financial Information.The Group prepares the financial statements based on continuous operation.The Group's auditing is based on the accrual basis. Except for some financial instruments and property held for investment, thefinancial statements are prepared based on historical costs. In case of any asset impairment, the impairment provision will be made asrequired.
2. Continuous operation
The Company assessed the continuing operations capability of the Company for the 12 months from the end of the reporting period.
No matters were found that would affect the Company's ability to continue as a going concern. It is reasonable for the Company toprepare financial statements based on continuing operations.
V. Significant Account Policies and EstimatesSpecific accounting policy and estimate prompt:
The Group determines the accounting policies and income recognition policies for investment real estate according to the productionand business features. For details, see Note V. 15 and Note V. 24.
1. Statement of compliance to the Enterprise Accounting Standard
The financial report and statements are prepared with compliance to the requirement of the Enterprise Accounting Standard. Theyreflect the financial position as of June 30, 2019, and business performance and cash flow situation in year 2019 of the Companyfrankly and completely.
2. Fiscal Period
The fiscal year of the Group is the solar calendar year, that is from January 1 to December 31.
3. Operation period
The operation period of the Group is 12 months.
4. Bookkeeping standard money
The Company, domestic subsidiaries and overseas subsidiary Shihui International Holding Co., Ltd. use RMB as bookkeepingstandard money. The overseas subsidiaries of the Company, Fangda Zhichuang Technology (Hong Kong) Co., Ltd., Fangda AustraliaPty Ltd, and Fangda Southeast Asia Co., Ltd. respectively determine Hong Kong Dollar, Australian Dollar and Vietnamese Dong inthe currency of the main economic environment in which they operate. The Group prepares financial statements in RMB.
5. Accounting treatment of the entities under common and different control
(1) Consolidation of entities under common control
Assets and liabilities obtained by the merging party are calculated at their book value with the merged parties at the merger day in theconsolidated financial statement of the merging party in addition to the adjustment made given the difference in accounting policies.The differences between the book value of net assets and the book value of consideration price (or the total of face value of shareissued) are adjusted to the capital reserve (share capital premium). If the share capital premium is not enough to offset the difference,it will be adjusted to the retained gains.Enterprise merger under common control through multiple transactionsIn separate financial statements, the initial investment cost is the book value of the merged party’s net assets that can be shared by themerging party in the consolidate financial statements of the final controlling party according to the shareholding percentage on themerging date; adjust the capital surplus (share premium) according to the difference between the initial investment cost and the book
value of the held investment before merger plus the book value of the consideration paid on the merger date. Where the capitalsurplus falls short, the retained income should be adjusted.In consolidated financial statements, assets and liabilities obtained by the merging party from the merged party should be measured atthe book value in the final controlling party’s consolidated financial statements other than the adjustment made due to differences inaccounting policies; adjust the capital surplus (share premium) according to the difference between the initial investment cost and thebook value of the held investment before merger plus the book value of the consideration paid on the merger date. Where the capitalsurplus falls short, the retained income should be adjusted. Changes in recognized related profit and loss, other misc. incomes andother owner's equity between the later one of the date when the original stock equity was obtained and the date when the mergedparty and merging party become under the common control should respectively write down the retained profit in beginning of thereport period or current period’s profit or loss.
(2) Consolidation of entities under different control
For merger of entities under different control, the merger cost is the fair value of the asset paid, liability undertaken, and equitysecurities issued for exchanging of control power over the entities at the day of acquisition. On the acquisition day, the assets andliabilities (if any) acquired by the Group from the acquired party are recognized on the fair value.If the merger costs exceed the fair value of the recognizable net assets of the acquired party in the merger, it is recognized as goodwilland measured based the costs after the accumulative impairment provision is deducted; if the the fair value exceeds the costs, it isincluded in the income statement for the period after being re-examined.Where there is new or further evidence on the condition existing on the acquisition date 12 months later and adjustment needs to bemade, the good will should be adjusted and merged.
(3) Treatment of related transaction fee in enterprise merger
Agency expenses and other administrative expenses such as auditing, legal consulting, or appraisal services occurred relating to themerger of entities are accounted into current income account when occurred. The transaction fees of equity certificates or liabilitycertificates issued by the purchaser for payment for the acquisition are accounted at the initial amount of the certificates.
6. Preparation of Consolidated Financial Statements
(1) Consolidation scope
The consolidate scope of consolidated financial statements is determined based on control. Control means the power possessed by theGroup on invested entities to share variable returns by participating in related activities of the invested entities and to impact theamount of the returns by using the power. Subsidiaries are enterprises controlled by the Company.
(2) Preparation of Consolidated Financial Statements
The consolidated financial statements are prepared by the Company based on financial statements of the Company and subsidiariesand according to other related information. During preparation of consolidated financial statements, the accounting policies andperiod of the Company and subsidiaries must be the same. Major transactions and balances between companies are offset.Subsidiaries and businesses increased because of merger of enterprises under the common control during the report period aredeemed consolidated into the consolidate scope from the date of becoming controlled by the final party. The operating result and cashflows of the subsidiaries and businesses from the date of becoming controlled by the final party should be incorporated into the
consolidate income statement and consolidate cash flow statement.For subsidiaries and businesses increased because of merger of enterprises not under the common control, their incomes, expensesand profits between the date of acquisition and end of the report period should be incorporated into the consolidated incomestatement, and the cash flows should be incorporated into the consolidated cash flow statement.The part of the shareholders’ equity in subsidiaries not owned the Company are separately listed under the shareholders’ equity asminority shareholders’ equity in the consolidated balance sheet. The part of the subsidiaries’ net profits and losses for the currentperiod that belongs to minority shareholders is listed as minority shareholders’ profits and losses under net profit in the consolidatedincome statement. If the losses of subsidiaries shared by the minority shareholders exceed the part of the owners’ equity of thesubsudiaries at the beginning of the period, the excessive part will offset the minority shareholders’ equity.
(3) Acquisition of subsidiary minority interests
The difference between the investment cost of the long-term equity obtained from acquisition of minority interests and the share ofnet assets in the subsidiary calculated continuously based on the increased shareholding percentage, and the difference between thedisposal income obtained from the partial disposal of the subsidiary’s equity investment without losing the control power and theshare of net assets in the subsidiary calculated continuously based on the increased shareholding percentage should be adjusted andconsolidated in the capital surplus in the consolidated balance sheet. Where the capital surplus falls short, the retained income shouldbe adjusted.
(4) Treatment of loss of subsidiaries’ control power
For loss of control over subsidiaries due to disposal of partial equity investment or other reasons, the remaining equity should bere-measured at the fair value on the date of loss of the control power; the sum of the consideration obtained from the disposal of stockequity and the fair value of the remaining equity, minus the sum of the share of the net assets’ book value calculated continuouslyfrom the acquisition date according to the original shareholding percentage and the goodwill should be recorded in the investmentgain of the current period of the loss of control power.Other misc. incomes related to the equity investment in the original subsidiary is transferred to the current period’s profit and losswhen the control power is losted, except for the other misc. incomes generated by remeasurement and resetting of earning plan orchange in the net assets by the invested party.
7. Recognition of cash and cash equivalents
Cash refers to cash on hand and deposits that can be used at any time for payment. Cash equivalent refers to the investments withshort term, strong liquidity and small risk of value fluctuation that are held by the Group and easily converted into cash with knownamount.
8.Foreign exchange business and foreign exchange statement translation
(1) Foreign currency business
Trades of the Group made in foreign currencies are translated into RMB basing on the spot exchange rate on the date when the tradeis conducted.At the balance sheet date, foreign currency items are translated on the spot exchange rate of the balance sheet date. The exchange
differences caused by the difference in exchange rates on the balance sheet date and initial recognizing date or previous balance sheetdate are included in the current profits and losses. Non-monetary items accounted in foreign currency and on historical costs areexchanged with the spot exchange rate on the transaction date. Non-monetary items accounted in foreign currency and on fair valueare exchanged with the spot exchange rate on the determination date of the fair value. The exchange difference between theaccounting standard-currency amount and the original accounting standard-currency amount are included in the current profits andlosses.
(2) Translation of foreign currency statement
On the balance sheet date, when foreign currency financial statements of overseas subsidiaries are converted, the assets and liabilitiesitems in the balance sheet are converted using the spot exchange rate on the balance sheet date. The shareholders’ equity items arecalculated as ―undistributed profits‖, except for other items. The spot exchange rate on the date of occurrence is used for conversion.The income and expense items in the income statement are translated using the exchange rate that is determined by the system’sreasonable method and approximate to the spot exchange rate on the transaction date.All items in the cash flow statement are converted according to the exchange rate that is determined by the system's reasonablemethod and approximate to the spot exchange rate on the day the cash flow occurs. The impact of changes in exchange rates on cashis used as a reconciliation item, which is separately presented in the cash flow statement ―Items Affecting Exchange Rate Movementson Cash and Cash Equivalents‖.The difference arising from the translation of the financial statements is reflected in the "Other comprehensive income" item underthe shareholders' equity item in the balance sheet.When foreign operations are disposed of and the control rights are lost, the difference in foreign currency statements related to theoverseas operations that are listed in the shareholders' equity items in the balance sheet is transferred to the profit or loss for thecurrent period, either in whole or in proportion to the disposal of the foreign operations.
9. Financial instrument
Financial instrument refers to a company’s financial assets and contracts that form other units of financial liabilities or equityinstruments.
(1) Classification and measurement of financial assets and financial liabilities
Financial assets and financial liabilities are recognized in the balance sheet when the Company becomes a party to thecontractual terms of the relevant financial instruments.Except for accounts receivable that do not have significant financing components, financial assets and financial liabilities aremeasured at fair value at initial recognition. For financial assets or liabilities measured at fair value with variations accounted intocurrent income account, related transaction expenses are accounted into the current income. For other financial assets or liabilities,the related transaction expenses are accounted into the initial recognized amounts. For accounts receivable that do not havesignificant financing components, the Company conducts initial measurement at the actual transaction price.
(2) Classification and subsequent measurement of financial assets
(a) Classification of financial assets
At initial recognition, the Company classifies financial assets into the following three categories based on the business model ofmanaging financial assets and the contractual cash flow characteristics of financial assets: financial assets measured at amortized costare measured at fair value and their changes are included in other Financial assets with comprehensive income and financial assetsmeasured at fair value through profit or loss.
Unless the Company changes the business model for managing financial assets, in this case, all affected financial assets arereclassified on the first day of the first reporting period after the business model changes, otherwise the financial assets may not beinitially confirmed.
The financial assets that are measured at fair value through profit or loss are classified as financial assets measured at amortisedcost:
① The business model of the company's management of the financial assets is based on the collection of contractual cashflows;
② The contractual terms of the financial asset stipulate that the cash flow generated on a specific date is only the payment ofthe principal and the interest based on the outstanding principal amount.
Financial assets that meet the following conditions and are not designated as at fair value through profit or loss are classified asfinancial assets at fair value through other comprehensive income:
① The business model of the company's management of the financial assets is aimed at both the collection of contractual cashflows and the sale of the financial assets;
② The contractual terms of the financial asset stipulate that the cash flow generated on a specific date is only the payment ofthe principal and the interest based on the outstanding principal amount.
For non-trading equity instrument investments, the Company may, at the time of initial recognition, arbitrarily designate it as afinancial asset that is measured at fair value and whose changes are included in other comprehensive income. The designation isbased on a single investment and the relevant investment is in line with the definition of the equity instrument from the issuer'sperspective.
The financial assets are measured at fair value through profit or loss. At the time of initial recognition, if the accountingmismatch can be eliminated or significantly reduced, the Company can arbitrarily designate financial assets that should be measuredat amortized cost or measured at fair value through other comprehensive income Financial assets measured and their changes areincluded in the current profit and loss.
The business model for managing financial assets refers to how the company manages financial assets to generate cash flows.The business model determines whether the cash flow of financial assets managed by the company is based on contract cash flow,financial assets sold or both. The Company determines the business model for managing financial assets based on objective facts andbased on the specific business objectives of financial assets management determined by key management personnel.
(b) Subsequent measurement of financial assets
① Financial assets measured at fair value with variations accounted into current income account
After the initial recognition, the financial assets are subsequently measured at fair value, and the gains or losses (includinginterest and dividend income) are included in the current profit and loss, unless the financial assets are part of the hedging
relationship.
② Equity instrument investment measured at fair value and whose changes are included in other comprehensive incomeAfter initial recognition, the financial assets of this type are subsequently measured at fair value. Dividend income is includedin profit or loss, and other gains or losses are included in other comprehensive income. When the confirmation is terminated, theaccumulated gains or losses previously included in other comprehensive income are transferred from other comprehensive incomeand included in retained earnings.
③ Financial assets measured at amortized cost
After initial recognition, such financial assets are measured at amortized cost using the effective interest method. Gains orlosses arising from financial assets that are measured at amortised cost and are not a component of any of the hedges are recognizedin profit or loss in
(3) Classification and subsequent measurement of financial liabilities
The Group classifies financial liabilities into financial liabilities measured at fair value through profit or loss and financialliabilities measured at amortised cost.
① Financial liabilities measured at fair value with variations accounted into current income account
Such financial liabilities include transactional financial liabilities (including derivatives that are financial liabilities) andfinancial liabilities designated as at fair value through profit or loss.
After the initial recognition, the financial liabilities are subsequently measured at fair value. Except for the hedge accounting,the gains or losses (including interest expenses) are recognized in profit or loss.
Financial liabilities measured at amortized cost
After initial recognition, other financial liabilities are measured at amortized cost using the effective interest method.
(4) Presentation of financial instruments
Financial assets and financial liabilities are presented separately in the balance sheet and are not offset by each other. However,if the following conditions are met, the net amount offset by each other is listed in the balance sheet:
① The company has a statutory right to offset the confirmed amount, and such legal right is currently enforceable;
② The company plans to settle the net assets or realize the financial assets and liquidate the financial liabilities at the sametime.
(5) Final recognition of financial instruments
The Company derecognises the financial asset when one of the following conditions is met:
① The contractual right to receive the cash flows of the financial assets is terminated;
② The financial assets have been transferred, and the company transfers almost all the risks and rewards of ownership of thefinancial assets to the transferee;
③ The financial assets have been transferred. Although the company has neither transferred nor retained almost all the risksand rewards of ownership of financial assets, it does not retain control over the financial assets.
If the financial assets transfer as a whole meets the conditions for derecognition, the difference between the carrying amount ofthe transferred financial assets on the date of derecognition and the consideration received from the transfer of the financial assets isrecognized in profit or loss.
If the current obligation of a financial liability (or part of it) has been discharged, the company derecognises the financialliability (or part of the financial liability).
(6) Impairment of financial assets
On the basis of expected credit losses, the Company conducts impairment test on financial assets and contract assets measured
at amortized cost and confirms impairment provision.Other financial assets held at fair value through the Company are not subject to the expected credit loss model, including equityinstrument investments that are measured at fair value through profit or loss, and are designated at fair value through Income fromequity instrument investments, as well as derivative financial assets(6.1) Expected credit loss measurementThe expected credit loss refers to the weighted average of the credit losses of financial instruments that are weighted by the riskof default. Credit loss refers to the difference between all contractual cash flows receivable from the contract and all cash flowsexpected to be received by the Company at the original actual interest rate, that is, the present value of all cash shortages.In measuring the expected credit losses, the longest period of consideration for the company is the longest contract period forwhich the company is exposed to credit risk (including consideration of renewal options).The expected lifetime credit loss is the expected credit loss due to all possible default events during the entire expected life ofthe financial instrument.
Expected credit losses in the next 12 months are expected to result from possible defaults in financial instruments within 12months after the balance sheet date (or estimated duration of financial instruments if the expected duration is less than 12 months)Credit losses are part of the expected lifetime credit loss.For accounts receivable and contract assets, the Company always measures its loss preparation in accordance with the amountof expected credit losses for the entire life. The Company calculates the expected credit losses of the above financial assets based onhistorical credit loss experience, industry data information, and usage preparation matrix. The relevant historical experience is basedon the specific factors of the receivables on the balance sheet date and the current conditions and future economic conditions. Theassessment is adjusted.
Except for accounts receivable and contract assets, the Company measures its loss for financial instruments that meet thefollowing conditions in accordance with the amount of expected credit losses in the next 12 months, and the other financialinstruments are equivalent to the entire life expectancy. The amount of credit loss is measured by its loss:
① The financial instrument has only a low credit risk on the balance sheet date; or
② The credit risk of the financial instrument has not increased significantly since the initial confirmation.(6.2) Lower credit risk
If the risk of default on financial instruments is low, the borrower’s ability to meet its contractual cash flow obligations in theshort term is strong, and even if the economic situation and operating environment are adversely changed over a long period of time,it may not necessarily reduce the receivables' performance of their contractual cash. The ability of the flow obligation, the financialinstrument is considered to have a lower credit risk.
(3) Substantially increased credit risks
The Company determines the relative risk of default risk of the financial instrument by comparing the risk of default of thefinancial instrument on the balance sheet date with the risk of default on the initial recognition date to assess the credit risk of thefinancial instrument from initial recognition.
In determining whether the credit risk has increased significantly since the initial recognition, the Company considersreasonable and evidenced information, including forward-looking information, that can be obtained without unnecessary additionalcosts or effort. The information considered by the company includes:
1.The debtor’s failure to pay the principal and interest on the contractual maturity date;
2.A serious deterioration in the external or internal credit rating (if any) of the financial instrument that has occurred or isexpected;
3.A serious deterioration in the operating results of the debtor that has occurred or is expected;
4.Changes in existing or anticipated technical, market, economic or legal circumstances that will have a material adverse effecton the debtor's ability to repay the Group.
Based on the nature of financial instruments, the Group assesses whether credit risk has increased significantly on the basis of a
single financial instrument or combination of financial instruments. When conducting an assessment based on a combination offinancial instruments, the Group can classify financial instruments based on common credit risk characteristics, such as overdueinformation and credit risk ratings.If the overdue period exceeds 30 days, the company has determined that the credit risk of financial instruments has increasedsignificantly. If the object of the receivable is unlikely to pay its full amount to the company or it is overdue for more than 90 days, itis considered that the default has occurred.(6.4) Financial assets with credit impairmentOn the balance sheet date, the Company assesses whether the financial assets measured at amortized cost have incurred creditimpairment. When one or more events that adversely affect the expected future cash flows of a financial asset occur, the financialasset becomes a financial asset that has suffered a credit impairment. Evidence that credit impairment has occurred in financial assetsincludes the following observable information:
① Severe financial difficulties in the issuer or debtor;
② The debtor violates the contract or defaults or delays the payment of the interest or principal;
③ The Company gives concessions to the debtor in any other circumstances for economic or contractual considerationsrelating to the financial difficulties of the debtor;
④ The debtor may go bankruptcy or conduct other financial reorganization;
⑤ The financial difficulties of the issuer or the debtor have caused the active market of the financial asset to disappear.(6.5) Presentation of expected credit loss measurement
In order to reflect the changes in the credit risk of financial instruments since the initial recognition, the Company re-measuresthe expected credit losses on each balance sheet date, and the increase or reversal of the loss provision resulting therefrom is includedas an impairment loss or gain. Current profit and loss. For financial assets measured at amortized cost, the loss is prepared to offsetthe carrying amount of the financial asset presented in the balance sheet.(6.6) Write-off
If the Company no longer reasonably expects that the financial asset contract cash flow can be fully or partially recovered, thebook balance of the financial asset is directly written down. 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. However, according to the company's procedures for recovering the due amount,the financial assets that have been written down may still be affected by the execution activities.
If the financial assets that have been written down are recovered in the future, the reversal of the impairment loss is included inthe profit or loss of the current period.
(7) Equity instruments
The consideration received by the Company for the issuance of equity instruments, after deducting transaction costs, isincluded in shareholders' equity. Repurchase the consideration and transaction fees paid by the Company's equity instruments toreduce shareholders' equity.
10. Notes receivable
For notes receivable, whether or not it contains significant financing components, the company always measures its losspreparation according to the amount of expected credit losses for the entire duration of the period, and the resulting increase or lossof losses is formed as an impairment loss or Gains are included in the current profit and loss.
The Company's evaluation of this category of funds has a lower credit risk. If there is objective evidence that a note receivablehas been credit-depreciated, the Company makes provision for bad debts and confirms expected credit losses for the notes receivable.
11. Account receivable
The Company considers all reasonable and evidence-based information, estimates the expected credit losses of receivables in asingle or combined manner, and adopts a simplified model of expected credit losses, always measuring the amount of expected creditlosses equivalent to the entire duration of the period. Loss preparation.
(1) Account receivable for which bad debt provision is made by item
(1.1) Account receivable with major individual amount and bad debt provision provided individually
| Judging basis or standard of major individual amount | For the current year, the Company recognizes project receivables over RMB10 million (inclusive) as ―individual receivable with large amount‖ while recognizes product receivables over RMB2 million (included) as ―individual receivable with large amount‖. |
| Provision method for account receivable with major individual amount and bad debt provision provided individually | The Company performs impairment examination individually on each large amount receivables, and recognizes impairment and provides bad debt provision when the impairment is recognized based on objective evidence. Those not impaired are accounted along with the minor amount receivables and recognized in risk groups. |
(1.2) Account receivable with minor individual amount and bad debt provision provided individually
| Reasons for separate bad debt provision | Long account age or deterioration of customer creditability |
| Method of bad debt provision | According to the difference between the present value of future cash flow and the book value |
(2) Recognition and providing of bad debt provisions on groups
| Group | Method of bad debt provision |
| Account age | Aging method |
| Combination of assets state (receivables within consolidation, receivables of real estate property sold with bank mortgage and accounts between the Company and partners) | Not provided |
Receivables adopting the aging method in the group:
| Age | Providing rate for receivable account |
| Engineering | Real estate | Others | |
| Within 1 year (inclusive) | 1.68% | 1.00% | 1.23% |
| 1-2 years | 5.41% | 5.00% | 3.85% |
| 2-3 years | 15.99% | 5.00% | 15.95% |
| 3-4 years | 30.15% | 15.00% | 33.98% |
| 4-5 years | 53.13% | 15.00% | 76.41% |
| Over 5 years | 100.00% | 15.00% | 100.00% |
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information DisclosureGuideline No.6 – Listed Companies Engaged in Decoration Business.
12. Other receivables
The Company measures its loss for financial instruments that meet the following conditions in accordance with the amount ofexpected credit losses in the next 12 months, and the other financial instruments are equivalent to the entire life expectancy. Theamount of credit loss is measured by its loss:
① The amount has only a low credit risk on the balance sheet date; or
② The credit risk of the amount has not increased significantly since the initial confirmation.
For details of the specific accounting judgment processing methods, please refer to "V. 9. Financial Instruments (6) Impairmentof Financial Assets" in this note.
13. Inventories
Whether the Company needs to comply with disclosure requirements of special industriesYesDecoration
(1) Classification of inventories
The Group’s inventories include purchased materials, raw materials, low-value consumables, packing materials, OEM materials,products in process, semi-finished goods, finished goods, inventory, development costs, development products and construction inprocess.
(2) Valuation method for issuing inventory
Inventories are measured at cost when procured. Raw materials, products in process, commodity stocks in transit and sel-madesemi-finished products are measured by the weighted average method.Construction contracts are measured by the effective cost, including direct and indirect expenses generated before the contracts are
fulfilled. Costs generated and recognized accumulatively by construction in process and settled payment are listed in the balancesheet as offset net amounts. The excessive part of the sum of the generated costs and recognized gross profit (loss) over the settledpayment is listed inventories; the excessive part of the settled payment over the sum of the generated costs and recognized grossprofit (loss) is listed as the prepayment received.Travel and bidding expenses generated by execution of contracts, if they can be separated and reliably measured and it is likely toenter into contracts, are accounted as the contract cost when the contracts are entered into; or into the current gain/loss account if theconditions are not met.The development costs include land transfer payment, infrastructure and facility costs, installation engineering costs, borrows beforecompletion of the development and other costs during the development process. The actual costs of the development product ispriced using the separate pricing method.
(3) Recognition of inventory realizable value and providing of impairment provision
The realizable net value of inventory is the estimated sales prices of the inventory less costs to be incurred until the completion,estimated sales expense and taxes. The realizable net value of inventory should be recognized based on solid evidence with thepurpose of the inventory and after-balance-sheet-date events taken into consideration.If the inventory cost is higher than the realizable net value on the balance sheet date, the inventory depreciation provision should bemade. The Group makes inventory depreciation provision for separate or a type of inventory. If factors affecting the inventory valuedisappear on the balance sheet date, the depreciation provision made should be reversed to the original value.
(4) Inventory system
The Group uses perpetual inventory system.
(5) Amortizing of low-value consumables and packaging materials
Low-value consumables are amortized on on-off amortization basis at using.
14. Long-term share equity investment
The Group's long-term equity investment includes control on invested entities and significant impacts on equity investment. Investedentities on which the Group has significant impacts are associates of the Group.
(1) Initial investment cost determination
Long-term equity investment generated by enterprise merger: for long-term equity investment obtained by merger of enterprisesunder common control, the obtained share of book value of the interests of the merged party’s owner in the consolidate financialstatements on the merger date is the investment costs; for long-term equity investment obtained by merger of enterprises not undercommon control, the merger cost is the investment cost.For long-term equity investment obtained by cash, the actually paid consideration is the initial investment cost.
(2) Subsequent measurement and recognition of gain/loss
Investments by the Company in subsidiaries are calculated using the cost method; in joint ventures are calculated using the equitymethod.
For the long-term equity investment measured on the cost basis, except for the announced cash dividend or profit included in thepractical cost or price when the investment was made, the cash dividends or profit distributed by the invested entity are recognized asinvestment gains in the current gain/loss account.When the equity method is used to measure long-term equity investment, the investment cost will not be adjusted if the investmentcost of the long-term equity investment is larger than the share of fair value of the recognizable assets of the invested entity. When itis smaller than the share of fair value of the recognizable assets of the invested entity, the book value will be adjusted and thedifference is included in the current gains of the investment.When the equity method is used, the current investment gain is the share of the net gain realized in the current year that can be sharedor borne, recognized as investment gain and other misc. income. The book value of the long-term equity investment is adjustedaccordingly. The book value of the long-term equity investment should be accordingly decreased based on the share of profit or cashdividend announced by the invested entity; according to other changes in the owner’s equity except for net profit and loss, other miscincome and profit distribution of the invested entity, adjust the book value of the long-term equity investment and record it in thecapital surplus (other capital surplus). When the share of the net gains that can be enjoyed is recognized, it is recognized after the netprofit of the invested entity is adjusted based on the fair value of the recognizeable assets of the invested entity according to theCompany's accounting policies and accounting period.Where substantial influence on invested entities is imposed or joint control is implemented due to increase in investment, the sum ofthe fair value of the original equity and increased investment on the conversion date is the initial investment cost under the equitymethod. The difference between the fair value and book value of the original equity on the conversion date and the accumulativechange in the fair value originally accounted in other misc. income should be transferred into the profit and loss of the current periodusing the equity method.Where joint control or substantial influence on invested entities is lost due to disposal of part of investment, the remaining equityafter the disposal should be treated according to the Enterprise Accounting Standard No.22 – Recognition and Measurement ofFinancial Instruments from the date of losing the joint control or substantial influence. The difference between the fair value andbook value should be accounted the profit and loss of the current period. For other misc. incomes of original share equity investmentdetermined using the equity method, when the equity method is no longer used, it should be treated based on the same basis of thetreatment of related assets or liability of the invested entities; the other owners' interests related to the original share equityinvestment should be transferred to gain/loss of the current period.Where the disposal of part of the equity investment leads to loss of control on the invested entity, and the remaining equity after thedisposal can impose common control or significant impacts on the invested entity, use the equity method and make adjustment as ifthe equity method was used when the remaining equity was acquired. If not, perform accounting treatment according to provisions inthe Enterprise Accounting Standard No.22 – Recognition and Measurement of Financial Tools. The difference between the fair valueand book value on the date of losing control should be transferred into the profit and loss of this period.Where the Company’s shareholding decreases and the Company loses the control due to increased investment by another investor,but the Company can still impose common control or significant impacts on the invested entity, the share of increased net assets ofthe invested entity that can be shared by the Company should be calculated based on the new shareholding, the difference betweenthe net assets and original book value of the original long-term equity investment should be recorded in the profit and loss of thisperiod and adjusted as if equity method was used when it was acquired according to the new shareholding proportion.Internal transaction gain not realized between the Company and affiliates is measured according to the shareholding proportion andthe investment gains is recoginzied after deduction. The unrealized internal transaction loss between the Company and the investedentity is the impairment loss of transferred assets and should not be written off.
(3) Basis for recognition of major influence on invested entities
Major influence refers to the power to participate in decision-making of financial and operation policies of a company, but cannotcontrol or jointly control the making of the policies. When considering whether the Company can impose significant impacts on theinvested entity, impacts of conversion of shares with voting rights held directly or indirectly by the investor and voting rights that canbe executed in this period held by the investor and other party into shares of the invested entity should be considered.When Company directly or indirectly holds 20% (inclusive) but less than 50% of the shares with voting rights of the invested entity,it is generally considered that the Company can impose significant impacts unless there is clear evidence proving that the Companyshall not participate in the production and business decision making of the company; when the Company holds less than 20% of theshares with voting rights, it is generally not considered that the Company has significant impacts on the invested entity, unless thereis clear evidence proving the contrary.
(4) Equity investment held for sale
For the remaining equity investments not classified as assets held for sale, the equity method is adopted for accounting treatment.Equity investments classified as held for sale to associates that are no longer eligible to hold classified assets for sale areretrospectively adjusted using the equity method starting from the date that they are classified as held for sale.
(5) Impairment examination and providing of impairment provision
See Note V. 20 for the assets impairment provision method for investment in subsidiaries and joint ventures.
IX. Investment real estates
Measuring mode of investment real estateMeasurement at fair valueBasis of choosing the measurement at fair valueFor investment real estates with an active real estate transaction market and the Group can obtain market price and other informationof same or similar real estates to reasonably estimate the investment real estates’ fair value, the Group will use the fair value mode tomeasure the investment real estates subsequently. Variations in fair value are accounted into the current gain/loss account.The fair value of investment real estate is determined with reference to the current market prices of same or similar real estates inactive markets; when no such price is available, with reference to the recent transaction prices and consideration of factors includingtransaction background, date and district to reasonably estimate the fair value; or based on the estimated lease gains and present valueof related cash flows.For investment real estate under construction (including investment real estate under construction for the first time), if the fair valuecannot be reliably determined but the expected fair value of the real estate after completion is continuously and reliably obtained, theinvestment real estate under construction is measured by cost. When the fair value can be measured reliably or after completion (theearlier one), it is measured at fair value. For an investment real estate whose fair value is proven unable to be obtained continuouslyand reliably by objective evidence, the real estate will be measured at cost basis until it is disposed and no residual value remains asassumed.The difference of the proceeds from sales, transfer, retirement or destruction of investment real estates with book value and relatedtaxes deducted is accounted into the current gain/loss account.
Investment real estate that use the cost method for further measurement adopt the straight-line depreciation provision method. SeeNote V. 20 for the provision method.
16. Fixed assets
(1) Recognition conditions
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing services, lease or foroperation & management, and have more than one accounting year of service life. The fixed assets can only be recognized heneconomic interests related to the fixed assets are very likely to flow into the company and the costs of the fixed assets can be reliablymeasured. The Group measures fixed assets at the actual costs when the fixed assets are obtained
(2) Depreciation method
| Type | Depreciation method | Service year | Residual rate | Annual depreciation rate % |
| Houses & buildings | Average age | 35-45 | 10% | 2%-2.57% |
| Mechanical equipment | Average age | 10 | 10% | 9% |
| Transportation facilities | Average age | 5 | 10% | 18% |
| Electronics and other devices | Average age | 5 | 10% | 18% |
| PV power plants | Average age | 20 | 5% | 4.75% |
17. Construction in process
The Group recognizes the cost of construction in process according to the actual construction expense, including necessaryengineering expenses, borrowing costs to be capitalized before the engineering reaches the preset service condition and other relatedcosts.Construction in process will be transferred to fixed assets when it reaches the preset service condition.See Note V. 20 for the provision method for construction in process.
18. Borrowing expenses
(1) Recognition principles for capitalization of borrowing expenses
Borrowing expenses occurred to the Group that can be accounted as purchasing or production of asset satisfying the conditions ofcapitalizing, are capitalized and accounted as cost of related asset. Borrowing expenses start to be capitalized when all of thefollowings are satisfied:
① Asset expense has already occurred. Asset expenses include cash payment, non-cash asset transferring, or undertaking of debtwith interest done for purchasing or producing of assets;
② Borrowing costs have occurred;
③ Purchasing or production activity, which is necessary for the asset to reach the useful status, has already started.
(2) Capitalization period of borrowing expenses
When the asset satisfying the capitalizing conditions has reached its usable or sellable status, capitalizing of borrowing expenses shallbe terminated. Borrowing expenses incurred after assets that meet capitalization conditions reach the service or sales conditions areaccounted into the current gain/loss account according to the actual amounts.If the construction or production of assets satisfying the capitalizing conditions is suspended abnormally for over 3 months,capitalizing of borrowing expenses shall be suspended. During the normal suspension period, borrowing expenses will be capitalizedcontinuously.
(3) Calculation of the capitalization amount of borrowing expense
Interest expenses generated by special borrowings less the interests income obtained from the deposit of unused borrowings orinvestment gains from temporary investment is capitalized; the capitalization amount for general borrowing is determined based onthe capitalization rate which is the exceeding part of the accumulative assets expense over weighted average of the assets expense ofthe special borrowing/used general borrowing. The capitalization ratio is the weighted average interest rate of general borrowings.In the capitalization period, the exchange difference of special borrowings in foreign currencies should be fully capitalized. Theexchange difference should be recorded in the profit and loss of this period.
(XIX) Intangible assets
(1) Pricing method, service life and depreciation test
The Group’s intangible assets include land using rights, trademarks, patent, special technologies, and software.Intangible assets are initially measured at costs and the useful life will be determined when obtained. Where the useful life is limited,the intangible assets will be amortized within the predicted useful life by using the amortization method that can reflect predictedrealization way of the economic benefit of the assets; whether the realization way cannot be reliably confirmed, use the straight-linemethod. If the useful life is uncertain, the intangible assets are not amortized.Intangible assets with limited useful life are amortized as followings:
| Type | Useful life | Basis of amortization |
| Land using right | Beneficial age | Average age |
| Trademarks and patents | 10 years | Average age |
| Proprietary technology | 10 years | Average age |
| Software | 5, 10 years | Average age |
At the end of each year, the Group will reexamine the useful life and amortization basis of intangible assets with limited useful life. Ifthey change, adjust the prediction and handle it according to accounting estimate changes.
On the balance sheet day, if the intangible assets become unlikely to bring future economic benefits for the Group, transfer all theintangible assets’ book value into the current gain/loss account.See Note V. 20 for the impairment provision method for intangible assets.
(2) Accounting policies for internal R&D expenses
The Group divides internal R&D project expenses into research and development expenses.The research expenses are accounted the current gain/loss account.Development expenses can only be capitalized when the following conditions are satisfied: the technology is feasible for use or sales;there is the intention to use or sell the intangible assets; it can be proven that the product generated by the intangible assets isdemanded or the intangible assets in demanded; if the intangible is used internally, it can be proven that it is useful; with necessarytechnical and financial resources and other resources to complete the development of the intangible assets and the intangible assetscan be used or sold; the development expense can be reliably measured. If not, the development expense is accounted into the currentgain/loss account.If a research project meets the above-mentioned conditions and passes the technical and economic feasibility study, the project willenter the development stage.Expenses in the development stage capitalized are listed as development expense on the balance sheet and transferred to intangibleassets when the project reaches the useful condition.
20. Assets impairment
The Group uses the cost mode to continue measuring the assets impairment to investment real estatement, fixed assets construction inprogress, intangible assets and goodwill (except for the inventories, investment real estate measured by the fair value mode, deferredincome tax assets and financial assets). The method is determined as follows:
The Group judges whether there is a sign of impairment to assets on the balance sheet day. If such sign exists, the Group estimatesthe recoverable amount and conducts the impairment test. Impairment test is conducted annually for goodwill generated by mergersand intangible assets that have not reached the useful condition no matter whether the impairment sign exists.The recoverable amount is determined by the higher of the net of fair value minus disposal expense and the present value of thepredicted future cash flow. The Group estimates the recoverable amount on the individual asset item basis; whether it is hard toestimate the recoverable amount on the individual asset item basis, determine the recoverable amount based on the asset group thatthe assets belong to. The assets group is determined by whether the main cash flow generated by the group is independent from thosegenerated by other assets or assets groups.When the recoverable amount of the assets or assets group is lower than its book value, the Group writes down the book value to therecoverable amount, the write-down amount is accounted into the current income account and the assets impairment provision ismade.
For goodwill impairment test, the book value of goodwill generated by mergers is amortized through reasonable measures since thepurchase day to related asset groups; those cannot be amortized to related assets groups are amortized to related combination of assetgroups. The related asset groups or combination of asset groups refer to those that can benefit from the synergistic effect of mergersand must not exceed to the reporting range determined by the Group.When the impairment test is conducted, if there is sign of impairment to the asset group or combination of asset groups related togoodwill, first perform impair test for asset group or combination of asset groups without goodwill and calculate the recoverableamount and recognize the related impairment loss. Then conduct impairment test on those with goodwill, compare the book valuewith recoverable amount. If the recoverable amount is lower than the book value, recognize the impairment loss of the goodwill.Once recognized, the asset impairment loss cannot be written back in subsequent accounting period.
21. Long-term amortizable expenses
The Group’s long-term amortizable expenses are measured at the actual costs and amortized averagely based on the beneficial term.For long-term amortizable expenses that are not beneficial in the subsequent account periods, the residual value is fully accountedinto the current gain/loss account.
22. Staff remuneration
(1) Accounting of operational leasing
The Group pays for the medical insurance, job injury insurance and breeding insurance and housing fund according to employees’wages and bonus and recognizes them as liabilities, which are recorded into the profit and loss or related assets costs in the currentperiod. If the liabilities cannot be fully paid within 12 months upon the end of the report period in which the employees provideservice, and the financial impacts are substantial, the liabilities should be measured at the discounted amount.
(2) Accounting of post-employment welfare
The post-employment welfare of the Group is a defined plan, which means that the Company does not need to assume anyresponsibility after making fixed contribution to an independent fund. The defined plan includes basic pension and unemploymentinsurance. The contribution of the plan is recognized as liabilities and recorded in the profit and loss of this period or related assetscosts.
(3) Accounting of dismiss welfare
Where the Group provides dismiss welfare for employees, the staff remuneration liabilities is recognized on the earlier one of thefollowing two date: when the Group cannot cancel the dismiss welfare provided for termination of employment or layoff; when theGroup recognizes the costs or expenses of reorganization related to the payment of dismiss welfare.
23. Anticipated liabilities
When responsibilities occurred in connection to contingent issues, and all of the following conditions are satisfied, they arerecognized as expectable liability in the balance sheet:
(1) This responsibility is a current responsibility undertaken by the Group;
(2) Execution of this responsibility may cause financial benefit outflow from the Group;
(3) Amount of the liability can be reliably measured.
Expected liabilities are initially measured at the best estimation on the expenses to exercise the current responsibility. The book valueof expected liability is revised at balance sheet day, and adjustment will be made to reflect current best estimation.
24. Revenue
Whether the Company needs to comply with disclosure requirements of special industriesYesDecorationThe Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information DisclosureGuideline No.6 – Listed Companies Engaged in Decoration Business.If they are not in the same year, then use the estimation on percentage basis when it is possible.The completion percentage is the costs occurred on the total cost.The reliable estimation of the result of providing of labor service must meet the following conditions: A. the revenue can be reliablymeasured; B. the economic benefit is very likely to flow into the company; C. the completion can be determined reliably; D. costsincurred or will be incurred can be reliably measured.If the result cannot be reliably estimated, use the service cost amount of the compensation obtained or will be obtained to recognizethe revenue of the providing of labor service and recognize the incurred laber service cost as the current expense. If no compensationcan be obtained for incurred labor service cost, no revenue can be recognized.
③ Demising of asset using rights
The revenue is recognized when the financial benefit in connection with the demising of asset using right was received and theamount can be reliably measured.
④ Construction contracts
On the balance sheet day, the Group recognizes the contract income and costs using the completion percentage method if the result ofthe construction contract can be reliably estimated. If not, such contracts are treated differently. If the contract cost can be recovered,the revenue is recognized according to the actual contract costs that can be recovered and the contract cost is recognized as thecurrent expense; if not, the contract cost is recognized as the current expense and no revenue is recognized.If the estimated total costs exceed the total revenue, the Group recognizes the estimated loss as the current expense.The competition percentage is determined by the share of the costs incurred in the total cost.The reliable estimation of the result of a construction contract must meet the following conditions: A. the revenue can be reliably
measured; B. the economic benefit is very likely to flow into the company; C. the completion cost can be clearly distinguished anddetermined reliably; D. the completion and costs that will be incurred for completion of the contract can be reliably recognized.
(2) Specific methods for revenue recognition
① Construction contracts
Metro screen door projects of the Company and Shenzhen Fangda Automatic System, and curtain wall project of Fangda Jianke areindividual construction contracts. They are accounted by the following means:
Construction contracts completed within a fiscal year are recognized for their income and cost upon completion.Income and expenses of the construction contracts carried over-year are recognized on percentage basis at balance sheet day when allof the following conditions are satisfied: contract income can be reliably measured, relative financial benefit can inflow to theCompany; progress of the project and costs to complete the contract can be reliably recognized; cost occurred to complete thecontract can be clearly distinguished and reliably measured, which enables comparing of actual cost with predicted cost.Contract costs are direct and indirect expenses occurred since the date when the contract is engaged till the completion day. Thecompetition percentage is determined by the share of the costs incurred in the total cost.Construction contracts completed in current term are recognized for income according to the actual total income of the contract lessincome recognized in previous terms; meanwhile, the total costs of the contract less costs recognized in previous terms arerecognized as current contract costs. If the total contract cost is predicted to be greater than the predicted total income, the predictedloss shall be recognized as current cost instantly.Parts of the curtain wall project under Fangda Jianke are outsourced, and administrative fees are collected at the agreed rate. Forthese construction contracts, income will be recognized when ongoing payment for the project is received and corresponding costsare transferred.
② Sales product
Revenue of products for domestic sales is recognized when the Group delivers the products and receives the sales payment or obtainsthe payment voucher; revenue for products for overseas sales is recognized at departure of the products.
③ Real estate sales
Income from real estate sales is recognized when the contract is signed and performed, project is developed and completed with therecord for the completion acceptance, the handover procedure is completed or property is deemed accepted by the customer as perthe property sales contract, the payment is received or it is believed that the payment can be received, and the cost can be measuredreliably.
25. Government subsidy
(1) Judgment basis and accounting treatment of assets-related government subsidyGovernment subsidy is only recognized when the required conditions are met and the subsidy is received.When a government subsidy is monetary capital, it is measured at the received or receivable amount. None monetary capital aremeasured at fair value; if no reliable fair value available, recognized at RMB1.Government subsidies related to assets are obtained by the Group to purchase, build or formulate in other manners long-term assets;or subsidies related to benefits.For subsidies that can formulate long-term assets without clear government regulations, the part of the subsidies corresponding to theasset value will be measured as assets-related government subsidies, while the rest of them will be measured as benefit-related
government subsidies. Where it is difficult to distinguish them from each them, the whole subsidies will be measured asbenefit-related government subsidies.If the asset-related government subsidy is recognized as deferred gain, should be recorded in gain and loss in the service life.
(2) Judgment basis and accounting treatment of return-related government subsidyIf a government subsidy related to income is used to compensate for related costs or losses that have occurred, it shall be included inthe current profit or loss or write-down related costs; if it is used to compensate for the related costs or losses in the subsequentperiod, it shall be included in the deferred income. During the period in which the related cost, expense or loss is recognized, it isincluded in the current profit or loss or the relevant cost is written off. Government subsidy measured at the nominal amount isaccounted into current income account. The Group adopts a consistent approach to the same or similar government subsidies.Government subsidy related to routine operations should be recorded in other gains or offset related cost. Government subsidy notrelated to routine operations should be recorded in non-operating income or expense.When a confirmed government subsidy needs to be returned, the book value of the asset is adjusted against the book value of therelevant asset at initial recognition. If there is a related deferred income balance, the book balance of the related deferred income iswritten off and the excess is credited to the current profit or loss; In other cases, it is directly included in the current profit and loss.The policy-based preferential loan obtained has interest subsidy. If the government allocates the interest-subsidy funds to the lendingbank, the loan amount actually received will be used as the entry value of the loan, and the borrowing cost will be calculated basedon the loan principal and policy-based preferential interest rate. If the government allocates the interest-bearing funds directly to theGroup, discount interest will offset the borrowing costs.
26. Differed income tax assets and differed income tax liabilities
Income tax includes current and deferred income tax Except for the adjustment goodwill generated by mergers or deferred incometax related to transactions or events directly accounted into the owners’ equity, income tax is accounted as income tax expense intothe current gain/loss account.The Group uses the temporary difference between the book value of the assets and liabilities on the balance sheet day and the taxbase and the liabilities method to recognize the deferred income tax.The taxable temporary difference recognizes the related deferred income tax liabilities, unless the taxable temporary difference iscreated by the following transactions:
(1) Initial recognition of goodwill, or of assets or liabilities generated in transactions with the following features: the transaction isnot a merger and the transaction does not affect the accounting profit or taxable proceeds;
(2) For taxable temporary difference related to investment in subsudiaries and affiliates, the reversal timing for the temporarydifference can be controlled and the difference is unlikely to be reversed in the foreseeable future.For deductible temporary difference, deductible loss and tax deduction that can be accounted in subsequent years, the Group
recognizes the incurred deferred income tax assets to the extent to the future income tax proceeds that is very likely to be received fordeducting deductible temporary difference, deductible loss and tax deduction, unless the deductible temporary difference is generatedin following transactions:
(1) the transaction is not a merger and the transaction does not affect the accounting profit or taxable proceeds;
(2) for the taxable temporary difference related to investment in subsidiaries and affiliates, the corresponding deferred income taxassets are recognized when the following condition is met: the temporary difference is very likely to be reversed in the foreseeablefuture and it is very likely to receive the taxable proceeds that can be used to deduct the deductible temporary difference.On the balance sheet day, the Group measures the deferred income tax assets and liabilities with the tax rate applicable during thepredicted period during which the assets are recovered or the liabilities are paid off and reflects the income tax influence of the assetsrecovery and liabilities repayment way on the balance sheet day.On the balance sheet day, the Group re-exmaines the book value of the deferred income tax assets. If it is unlikely to have adequatetaxable proceeds to reduct the benefits of the deferred income tax assets, less the deferred income tax assets’ book value. When thereis adequate taxable proceeds, the lessened amount will be reversed.
27. Leasing
(1) Accounting of operational leasing
The Group transfers all the risks and rewards attached to the asset at substantially transferred to the lessee, it is recognized asfinancial leasing, and the others are operational leasing. The Group's lease forms are mainly operating leases.
(1) The Group is the leasor
Rentals from operational leasing are recognized as current gains on straight basis to the periods of leasing. Initial direct expenses arerecorded to current income account.
(2) The Group is the leasee
Rentals in operational leasing are recorded to relative capital cost or current income account on straight basis to the periods of leasing.Initial direct expenses are recorded to current income account.
28. Other significant accounting policies and estimates
The Group continuously reviews significant accounting judgment and estimate adopted for the reasonable forecast of future eventsbased on its historical experience and other factors.Significant accounting judgment and assumptions that may lead to major adjustment of the book value of assets and liabilities in thenext accounting year are listed as follows:
(1) Goodwill impairment
The Group judges whether there is impairment to goodwill at least annually. This required valuation of the use value of the assetgroups with goodwill. While estimating the use value, the Group needs to estimate the cash flow from the asset group in the futureand choose the proper discount rate to calculate the present value of the future cash flow.
(2) Estimation of fair value
The Group uses fair value to measure investment real estate and needs to estimate the fair value of investment real estate at leastquarterly. This requires the management to reasonably estimate the fair value of the investment real estate with the help of valuationexperts.
(3) Deferred income tax assets
If there is adequate taxable profit to deduct the loss, the deferred income tax assets should be recognized by all the unused tax loss.This requires the management to make a lot of judgment to forecast the time and amount of future taxable profit and determine theamount of the deferred tax assets based on the taxation strategy.
(4) Construction contract
The Group recognizes income based on the completion of individual construction contract. The management determines thecompletion percentage based on the actual cost in the total budget and forecasts the contract income. The starting and completiondates of construction contracts fall in different account periods. The Group will review and adjust contract income and costestimation in budgets (if the actual contract income is less than the estimate or actual contract cost, contract estimation loss provisionwill be made).
(5) Development cost
For property that has been handed over with income recognized, but whose public facilities have not been constructed or not beencompleted, the management will estimate the development cost for the part that has not been started according to the budget to reflectthe operation result of the property sales.
(6) Hedge accounting
When the hedge relationship begins, the Group specifies the hedge relationship in writing to specify the follow: risks managementtarget and hedging strategy; nature of the hedged item and quantity; nature and quantity of hedging instruments, nature andidentification of hedged risks; evaluation of the hedging effectiveness, including the economic relationship between the hedged itemand hedging instrument, hedging ratio, analysis of the hedging ineffectiveness source; the beginning date of the specified hedgingrelationship.Cash flow hedgingDuring the existence of the hedging relationship, the part of the cumulative gain or loss of the hedging instrument within the changeto the current value of the cumulative cash flow of the hedged item is included into other misc. incomes. The part that is lower orlarger than the cash flow change is included into the gain or loss of the current period.When the hedging relationship ends and related inventory is recognized, the hedging instrument gain or loss recognized in ―Othermisc. income hedging reserve‖ will be transferred to ―Raw materials‖.
29. Major changes in accounting policies and estimates
(1) Changes in accounting policies
√ Applicable □ Inapplicable
| Account policy changes and reasons | Approval procedure | Remark |
| In 2017, the Ministry of Finance revised and released the "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments", "Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets", "Accounting Standards for Business Enterprises No. 24 - Hedge Accounting", "Accounting Standards for Business Enterprises No. 37 - Financial Instruments Presentation" (hereinafter collectively referred to as the "New Financial Instruments Standards") and requires enterprises listed in China to implement the above accounting standards from January 1, 2019. In accordance with the above requirements, the Company implement the new financial instrument guidelines from January 1 2019. | 15th meeting of the 8th Supervisory Committee | |
| On April 30, 2019, the Ministry of Finance issued the Notice on Amending the Format of the 2019 Annual General Enterprise Financial Statements (Accounting [2019] No. 6). Enterprises requiring the implementation of corporate accounting standards should follow the Accounting Standards for Business Enterprises, requiring for the preparation of the 2019 interim financial statements and annual financial statements and financial statements for subsequent periods. In accordance with the above notification requirements, the Company has adjusted the financial statement items accordingly, starting from the 2019 interim financial statements. | 17th meeting of the 8th Board of Directors | It only affects the listing of related items in the financial statements, and does not affect the company's total assets, total liabilities, net assets and net profit. |
The specific impact of the implementation of the new financial instruments guidelines on the financial statement items at thebeginning of 2019 is as follows:
1. Provision for impairment according to the new financial instrument standard adjustment to reduce the bad debt provision foraccounts receivable by RMB 12,690,700, reduce the provision for bad debts of other receivables by RMB 2,145,000, reduce thedeferred income tax assets by RMB 3,305,900 and increase the initial surplus reserve by RMB 8,300, and increase the undistributedprofit of RMB 11,521,500 at the beginning of the period.
2. The non-trading equity instrument investment is designated as a financial asset measured at fair value and its changes areincluded in other comprehensive income. The original provision for impairment is adjusted to other comprehensive income and theother comprehensive income at the beginning of the period is reduced by RMB 5,166,400. The initial surplus reserve is increased byRMB 516,600 and the undistributed profit is increased by RMB 4,649,800 at the beginning of the period.
The impact of the implementation of the new financial instrument criteria on the company's current financial statement itemsand amounts is as follows:
Provision for impairment according to the new financial instrument standard, adjustment and reduction of bad debt provisionfor accounts receivable of RMB1,215,500, increase of bad debt provision for other receivables of RMB2,084,200, correspondingincrease of deferred income tax assets of RMB436,200, increase credit impairment losses of RMB868,800, reduced income taxexpenses of RMB436,200, reduced net profit attributable to the parent company of RMB419,300, and reduced undistributed profit ofRMB416,600.
(2) Changes in major accounting estimates
□ Applicable √ Inapplicable
(3) The first implementation of the new financial instruments guidelines, new income standards, new leasestandards, adjustments the first implementation of the financial statements at the beginning of the year
√ Applicable □ Inapplicable
Consolidated Balance Sheet
In RMB
| Item | December 31, 2018 | January 1, 2019 | Adjustment |
| Current asset: | |||
| Monetary capital | 1,389,062,083.76 | 1,389,062,083.76 | |
| Settlement provision | |||
| Outgoing call loan | |||
| Transactional financial assets | 0.00 | ||
| Financial assets measured at fair value with variations accounted into current income account | |||
| Derivative financial assets | 0.00 |
| Notes receivable | 140,139,692.84 | 140,139,692.84 | |
| Account receivable | 1,920,075,031.85 | 1,932,765,689.04 | 12,690,657.19 |
| Receivable financing | |||
| Prepayment | 46,454,844.74 | 46,454,844.74 | |
| Insurance receivable | |||
| Reinsurance receivable | |||
| Provisions of Reinsurance contracts receivable | |||
| Other receivables | 139,990,188.26 | 142,135,200.55 | 2,145,012.29 |
| Including: interest receivable | |||
| Dividend receivable | |||
| Repurchasing of financial assets | |||
| Inventory | 651,405,832.29 | 651,405,832.29 | |
| Contract assets | |||
| Assets held for sales | |||
| Non-current assets due in 1 year | |||
| Other current assets | 51,698,111.14 | 51,698,111.14 | |
| Total current assets | 4,338,825,784.88 | 4,353,661,454.36 | 14,835,669.48 |
| Non-current assets: | |||
| Loan and advancement provided | |||
| Debt investment | |||
| Sellable financial assets | 21,674,008.23 | -21,674,008.23 | |
| Other debt investment | |||
| Investment held until mature | |||
| Long-term receivable | |||
| Long-term share equity investment | 70,105,657.88 | 70,105,657.88 | |
| Investment in other equity tools | 21,674,008.23 | 21,674,008.23 |
| Other non-current financial assets | |||
| Investment real estate | 5,256,442,406.63 | 5,230,896,067.50 | |
| Fixed assets | 455,274,241.83 | 455,274,241.83 | |
| Construction in process | 58,269,452.72 | 58,269,452.72 | |
| Productive biological assets | |||
| Gas & petrol | |||
| Use right assets | |||
| Intangible assets | 80,313,240.67 | 80,313,240.67 | |
| R&D expense | |||
| Goodwill | |||
| Long-term amortizable expenses | 2,114,331.46 | 2,114,331.46 | |
| Deferred income tax assets | 356,474,925.76 | 356,474,925.76 | -3,305,914.45 |
| Other non-current assets | 19,360,083.67 | 19,360,083.67 | |
| Total of non-current assets | 6,320,028,348.85 | 6,316,722,434.40 | -3,305,914.45 |
| Total of assets | 10,658,854,133.73 | 10,670,383,888.76 | 11,529,755.03 |
| Current liabilities | |||
| Short-term loans | 208,000,000.00 | 208,000,000.00 | |
| Loans from Central Bank | |||
| Call loan received | |||
| Transactional financial liabilities | |||
| Financial liabilities measured at fair value with variations accounted into current income account | |||
| Derivative financial liabilities | 1,625,725.00 | 1,625,725.00 | |
| Notes payable | 507,864,518.19 | 507,864,518.19 | |
| Account payable | 1,039,630,798.64 | 1,039,630,798.64 | |
| Prepayment received | 278,577,848.54 | 278,577,848.54 | |
| Selling of repurchased financial assets |
| Deposit received and held for others | |||
| Entrusted trading of securities | |||
| Entrusted selling of securities | |||
| Employees’ wage payable | 44,513,062.17 | 44,513,062.17 | |
| Taxes payable | 107,709,999.19 | 107,709,999.19 | |
| Other payables | 813,118,699.84 | 813,118,699.84 | |
| Including: interest payable | 2,098,971.44 | 2,098,971.44 | |
| Dividend payable | |||
| Fees and commissions payable | |||
| Reinsurance fee payable | |||
| Contract liabilities | |||
| Liabilities held for sales | |||
| Non-current liabilities due in 1 year | 200,000,000.00 | 200,000,000.00 | |
| Other current liabilities | 9,328,682.25 | 9,328,682.25 | |
| Total current liabilities | 3,210,369,333.82 | 3,210,369,333.82 | |
| Non-current liabilities: | |||
| Insurance contract provision | |||
| Long-term loans | 1,193,978,153.39 | 1,193,978,153.39 | |
| Bond payable | |||
| Including: preferred stock | |||
| Perpetual bond | |||
| Lease liabilities | |||
| Long-term payable | |||
| Long-term employees’ wage payable | |||
| Anticipated liabilities | 6,831,162.99 | 6,831,162.99 |
| Deferred earning | 10,401,161.30 | 10,401,161.30 | |
| Deferred income tax liabilities | 1,042,086,700.35 | 1,042,086,700.35 | |
| Other non-current liabilities | |||
| Total of non-current liabilities | 2,253,297,178.03 | 2,253,297,178.03 | |
| Total liabilities | 5,463,666,511.85 | 5,463,666,511.85 | |
| Owner’s equity: | |||
| Share capital | 1,155,481,686.00 | 1,155,481,686.00 | |
| Other equity tools | |||
| Including: preferred stock | |||
| Perpetual bond | |||
| Capital reserves | 1,454,191.59 | 1,454,191.59 | |
| Less: Shares in stock | 10,831,437.66 | 10,831,437.66 | |
| Other miscellaneous income | 7,382,087.59 | 2,215,662.01 | -5,166,425.58 |
| Special reserves | |||
| Surplus reserves | 120,475,221.40 | 121,000,081.43 | 524,860.03 |
| Common risk provisions | |||
| Retained profit | 3,921,225,872.96 | 3,937,397,193.54 | 16,171,320.58 |
| Total of owner’s equity belong to the parent company | 5,195,187,621.88 | 5,206,717,376.91 | 11,529,755.03 |
| Minor shareholders’ equity | |||
| Total of owners’ equity | 5,195,187,621.88 | 5,206,717,376.91 | 11,529,755.03 |
| Total of liabilities and owner’s interest | 10,658,854,133.73 | 10,670,383,888.76 | 11,529,755.03 |
About the adjustment
In 2017, the Ministry of Finance revised and released the "Accounting Standards for Business Enterprises No. 22 - Recognitionand Measurement of Financial Instruments", "Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets","Accounting Standards for Business Enterprises No. 24 - Hedge Accounting" "Accounting Standards for Business Enterprises No. 37- Financial Instruments Presentation" (hereinafter collectively referred to as the "New Financial Instruments Standards"), and requiresenterprises listed in China to implement the above accounting standards from January 1, 2019.In accordance with the above requirements, the Company will implement the new financial instrument standard from January 1,2019 and reclassify the original financial assets into transactional financial assets, derivative financial assets, other equity instrument
investments and other non-current financial assets. Non-transaction equity instrument investment is designated as financial assetsmeasured at fair value through other comprehensive income and is presented in ―other equity instrument investment‖ items. At thesame time, the loss provision prepared by the original financial instrument standard is adjusted to be in accordance with the newfinancial instrument. According to the regulations, it is not necessary to repeat the data of the 2018 comparative period whenpreparing the report for each period of 2019, but it is necessary to make retrospective adjustments to the retained earnings or othercomprehensive income at the beginning of 2019.Balance Sheet of the Parent Company
In RMB
| Item | December 31, 2018 | January 1, 2019 | Adjustment |
| Current asset: | |||
| Monetary capital | 410,118,157.55 | 410,118,157.55 | |
| Transactional financial assets | |||
| Financial assets measured at fair value with variations accounted into current income account | |||
| Derivative financial assets | |||
| Notes receivable | 200,000,000.00 | 200,000,000.00 | |
| Account receivable | 471,039.12 | 471,039.12 | 8,595.25 |
| Receivable financing | |||
| Prepayment | 6,733,047.16 | 6,733,047.16 | |
| Other receivables | 822,543,653.04 | 822,543,653.04 | 100,970.95 |
| Including: interest receivable | |||
| Dividend receivable | 100,000,000.00 | 100,000,000.00 | |
| Inventory | |||
| Contract assets | |||
| Assets held for sales | |||
| Non-current assets due in 1 year | |||
| Other current assets | 919,388.18 | 919,388.18 | |
| Total current assets | 1,440,785,285.05 | 1,440,894,851.25 | 109,566.20 |
| Non-current assets: | |||
| Debt investment |
| Sellable financial assets | 21,674,008.23 | -21,674,008.23 | |
| Other debt investment | |||
| Investment held until mature | |||
| Long-term receivable | |||
| Long-term share equity investment | 983,339,494.35 | 983,339,494.35 | |
| Investment in other equity tools | 21,674,008.23 | 21,674,008.23 | |
| Other non-current financial assets | |||
| Investment real estate | 309,189,866.37 | 309,189,866.37 | |
| Fixed assets | 53,784,811.23 | 53,784,811.23 | |
| Construction in process | |||
| Productive biological assets | |||
| Gas & petrol | |||
| Use right assets | |||
| Intangible assets | 2,112,301.97 | 2,112,301.97 | |
| R&D expense | |||
| Goodwill | |||
| Long-term amortizable expenses | 917,499.68 | 917,499.68 | |
| Deferred income tax assets | 34,555,598.81 | 34,528,207.26 | -27,391.55 |
| Other non-current assets | |||
| Total of non-current assets | 1,405,573,580.64 | 1,405,546,189.09 | -27,391.55 |
| Total of assets | 2,846,358,865.69 | 2,846,441,040.34 | 82,174.65 |
| Current liabilities | |||
| Short-term loans | 200,000,000.00 | 200,000,000.00 | |
| Transactional financial liabilities | |||
| Financial liabilities measured at fair value with variations accounted into current income account | |||
| Derivative financial |
| liabilities | |||
| Notes payable | |||
| Account payable | 676,941.85 | 676,941.85 | |
| Prepayment received | 733,274.16 | 733,274.16 | |
| Contract liabilities | |||
| Employees’ wage payable | 2,145,763.39 | 2,145,763.39 | |
| Taxes payable | 341,004.65 | 341,004.65 | |
| Other payables | 300,006,406.51 | 300,006,406.51 | |
| Including: interest payable | 740,208.33 | 740,208.33 | |
| Dividend payable | |||
| Liabilities held for sales | |||
| Non-current liabilities due in 1 year | |||
| Other current liabilities | |||
| Total current liabilities | 503,903,390.56 | 503,903,390.56 | |
| Non-current liabilities: | |||
| Long-term loans | 500,000,000.00 | 500,000,000.00 | |
| Bond payable | |||
| Including: preferred stock | |||
| Perpetual bond | |||
| Lease liabilities | |||
| Long-term payable | |||
| Long-term employees’ wage payable | |||
| Anticipated liabilities | |||
| Deferred earning | |||
| Deferred income tax liabilities | 64,130,617.41 | 64,130,617.41 | |
| Other non-current liabilities | |||
| Total of non-current liabilities | 564,130,617.41 | 564,130,617.41 |
| Total liabilities | 1,068,034,007.97 | 1,068,034,007.97 | |
| Owner’s equity: | |||
| Share capital | 1,155,481,686.00 | 1,155,481,686.00 | |
| Other equity tools | |||
| Including: preferred stock | |||
| Perpetual bond | |||
| Capital reserves | 360,835.52 | 360,835.52 | |
| Less: Shares in stock | 10,831,437.66 | 10,831,437.66 | |
| Other miscellaneous income | 8,756,553.46 | 3,590,127.88 | -5,166,425.58 |
| Special reserves | |||
| Surplus reserves | 120,475,221.40 | 121,000,081.43 | 524,860.03 |
| Retained profit | 504,081,999.00 | 508,805,739.20 | 4,723,740.20 |
| Total of owners’ equity | 1,778,324,857.72 | 1,778,407,032.37 | 82,174.65 |
| Total of liabilities and owner’s interest | 2,846,358,865.69 | 2,846,441,040.34 | 82,174.65 |
About the adjustment
In 2017, the Ministry of Finance revised and released the "Accounting Standards for Business Enterprises No. 22 - Recognitionand Measurement of Financial Instruments", "Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets","Accounting Standards for Business Enterprises No. 24 - Hedge Accounting" "Accounting Standards for Business Enterprises No. 37- Financial Instruments Presentation" (hereinafter collectively referred to as the "New Financial Instruments Standards"), and requiresenterprises listed in China to implement the above accounting standards from January 1, 2019.In accordance with the above requirements, the Company will implement the new financial instrument standard from January 1,2019 and reclassify the original financial assets into transactional financial assets, derivative financial assets, other equity instrumentinvestments and other non-current financial assets. Non-transaction equity instrument investment is designated as financial assetsmeasured at fair value through other comprehensive income and is presented in ―other equity instrument investment‖ items. At thesame time, the loss provision prepared by the original financial instrument standard is adjusted to be in accordance with the newfinancial instrument. According to the regulations, it is not necessary to repeat the data of the 2018 comparative period whenpreparing the report for each period of 2019, but it is necessary to make retrospective adjustments to the retained earnings or othercomprehensive income at the beginning of 2019.
(4) Description of the first implementation of the new financial instrument criteria, new lease standardretrospective adjustment of the previous period comparison data
□ Applicable √ Inapplicable
VI. Taxation
1. Major taxes and tax rates
| Tax | Tax basis | Tax rate |
| VAT | Taxable income | 3%, 5%, 6%, 9%, 10%, 13%, 16% |
| City maintenance and construction tax | Taxable turnover | 1%, 5%, 7% |
| Enterprise income tax | Taxable turnover | See the following table |
| Education surtax | Taxable turnover | 3% |
| Local education surtax | Taxable turnover | 2% |
Tax rates applicable for different tax payers
| Tax payer | Income tax rate |
| The Company | 25% |
| Shenzhen Fangda Jianke Group Co., Ltd. | 15% |
| Fangda Zhichuang Science and Technology Co., Ltd. | 15% |
| Fangda New Materials (Jiangxi) Co., Ltd. | 15% |
| Dongguan Fangda New Material Co., Ltd. | 15% |
| Chengda Fangda Construction Technology Co., Ltd. | 15% |
| Shenzhen Fangda Property Development Co., Ltd. | 25% |
| Shenzhen Fangda New Energy Co., Ltd. | 25% |
| Shenzhen Fangda Property Management Co., Ltd. | 25% |
| Fangda Property (Jiangxi) Co., Ltd. | 25% |
| Pingxiang Fangda Luxin New Energy Co., Ltd. | 25% |
| Pingxiang Xiangdong Fangda New Energy Co., Ltd. | 25% |
| Nanchang Xinjian Fangda New Energy Co., Ltd. | 25% |
| Dongguan Fangda New Energy Co., Ltd. | 25% |
| Shenzhen Qianhai Kechuangyuan Software Co., Ltd. | 15% |
| Fangda Zhichuang Science and Technology (Hong Kong) Co., Ltd. | 16.50% |
| Shihui International Holding Co., Ltd. | 16.50% |
| Shenzhen Hongjun Investment Co., Ltd. | 25% |
| Fangda Australia Pty Ltd | 30% |
| Shanghai Fangda Qingling Technology Co., Ltd. | 25% |
| Shenzhen Fangda Cloud Rail Technology Co., Ltd. | 25% |
| Shenzhen Zhongrong Litai Investment Co., Ltd. | 25% |
| FANGDA SOUTHEAST ASIA COMPANY LIMITED | 20% |
2. Tax preference
(1) According to the Certification of High-tech Enterprise issued by Shenzhen Commission of Technological Innovation, ShenzhenCommission of Finance, Shenzhen National Tax Bureau, and Shenzhen Local Tax Bureau, Fangda Jianke was entitled to enjoy a taxpreference of enterprise income tax of 15% for three years (2018-2020) since the qualifications were awarded on October 16, 2018.
(2) According to the Certification of High-tech Enterprise issued by Shenzhen Commission of Technological Innovation, ShenzhenCommission of Finance, Shenzhen National Tax Bureau, and Shenzhen Local Tax Bureau, Fangda Zhichuang was entitled to enjoy atax preference of enterprise income tax of 15% for three years (2018-2020) since the qualifications were awarded on October 16,2018.
(3) According to the Certification of High-tech Enterprise issued by Jiangxi Ministry of Science and Technology, Jiangxi Ministry ofFinance, Jiangxi National Tax Bureau, and Jiangxi Local Tax Bureau, Fangda New Material was entitled to enjoy a tax preference ofenterprise income tax of 15% for three years (2018-2020) since the qualifications were awarded on August 13, 2018.
(4) On December 14, 2017, the subsidiary Chengdu Fangda Construction Technology Co., Ltd. obtained the ―High-tech EnterpriseCertificate‖ jointly issued by Sichuan Science and Technology Department, Sichuan Provincial Department of Finance, SichuanProvincial State Taxation Bureau and Sichuan Provincial Local Taxation Bureau, within three years after obtaining the qualificationof high-tech enterprises (2017 to 2019), the income tax is levied at 15%.
(5) On November 30, 2016, the subsidiary Dongguan Fangda New Materials Co., Ltd. obtained the ―High-tech EnterpriseCertificate‖ jointly issued by Guangdong Science and Technology Department, Guangdong Provincial Department of Finance,Guangdong Provincial State Taxation Bureau and Guangdong Provincial Local Taxation Bureau. The income tax shall be levied at15% within three years after the qualification of the high-tech enterprise is recognized (2016 to 2018).
(6) On November 2, 2015, the Songshan Lake Taxation Bureau of the State Taxation Bureau of Dongguan City notified the―Songshan Lake National Taxation Pass [2015] No. 3305‖ that the photovoltaic power generation project undertaken by thesubsidiary Dongguan Fangda New Energy Co., Ltd. belongs to public infrastructure projects supported by the state will be exemptedfrom corporate income tax for three years and corporate income tax will be halved for three years. In 2015, the company entered theexemption period.
(7) On March 2, 2016, according to the document issued by Luxi National Tax Bureau, the PV power generation project undertakenby Subsidiary Pingxiang Fangda Luxin New Energy Co., Ltd, became the infrastructure project supported by the central government.the company enjoys a three-year enterprise income tax relief and 50% reduction for another three years. In 2016, the companyentered the exemption period.
(8) On June 2, 2016, according to the document issued by Nanchang Xinjian District National Tax Bureau, the PV power generationproject undertaken by Subsidiary Nanchang Xinjian Fangda New Energy Co., Ltd, became the infrastructure project supported by thecentral government. the company enjoys a three-year enterprise income tax relief and 50% reduction for another three years. In 2016,the company entered the exemption period.
(9) According to the registration to Shenzhen National Tax Bureau, subsidiary Kechuangyuan Software became a newly establishedsoftware and integrated circuit designing company and can enjoy the two-year full exemption and three-year half-exemption of theenterprise income tax from the first year that the company records profit. Kexunda started making profits in 2016 and therefore starts
to enjoy the exemption.VII. Notes to the consolidated financial statements
1. Monetary capital
In RMB RMB
| Item | Closing balance | Opening balance |
| Inventory cash: | 3,448.76 | 5,167.01 |
| Bank deposits | 417,446,721.38 | 994,706,369.72 |
| Other monetary capital | 655,276,556.31 | 394,350,547.03 |
| Total | 1,072,726,726.45 | 1,389,062,083.76 |
| Including: total amount deposited in overseas | 27,209,910.00 | 25,269,577.35 |
Other noteNote: 1. The book balance of other monetary funds at the end of the period is RMB655,276,556.31, mainly including money depositssuch as money order deposits, stage deposit guarantees guarantee, letters deposits of investment funds and repurchase payments of Bshares.
2. The deposit and frozen deposit and time deposit shall not be treated as cash and cash equivalent in the preparation of cash flowstatements.
3. At the end of the period, the Group's total amount deposited abroad was RMB27,209,910.00.
2. Transactional financial assets
In RMB RMB
| Item | Closing balance | Opening balance |
| Financial assets measured at fair value with variations accounted into current income account | 200,121,506.67 | 0.00 |
| Including: | ||
| Fund | 200,121,506.67 | 0.00 |
| Financial assets measured at fair value with variations accounted into current income account | 0.00 | 0.00 |
| Including: | ||
| Total | 200,121,506.67 | 0.00 |
Others:
3. Derivative financial assets
In RMB RMB
| Item | Closing balance | Opening balance |
| Hedging tools | 17,375.00 | 0.00 |
| Total | 17,375.00 | 0.00 |
Others:
4. Notes receivable
(1) Classification of notes receivable
In RMB RMB
| Item | Closing balance | Opening balance |
| Bank acceptance | 5,220,227.04 | 6,000,000.00 |
| Commercial acceptance | 80,227,865.72 | 134,139,692.84 |
| Financing credit | 207,778.42 | |
| Total | 85,655,871.18 | 140,139,692.84 |
(2) Pledged notes receivable at the end of period
In RMB RMB
| Item | Amount pledged at the end of the period |
| Commercial acceptance | 0.00 |
| Total | 0.00 |
(3) The Group has no endorsed or discounted immature receivable notes at the end of the period.
In RMB RMB
| Item | De-recognized amount | Not de-recognized amount |
| Bank acceptance | 136,630,211.35 | 0.00 |
| Commercial acceptance | 8,862,482.58 | 0.00 |
| Total | 145,492,693.93 | 0.00 |
Others:
There is no objective evidence that the Group’s bills receivable are impaired and no provision forimpairment of bills receivable has been accrued.
5. Account receivable
(1) Account receivable disclosed by categories
In RMB RMB
| Type | Closing balance | Opening balance | ||||||||
| Remaining book value | Bad debt provision | Book value | Remaining book value | Bad debt provision | Book value | |||||
| Amount | Proportion | Amount | Provision rate | Amount | Proportion | Amount | Provision rate | |||
| Account receivable for which bad debt provision is made by group | 127,021,059.76 | 5.11% | 127,021,059.76 | 100.00% | 0.00 | 127,037,156.92 | 5.56% | 127,037,156.92 | 100.00% | 0.00 |
| Including: | ||||||||||
| Account receivable with major individual amount and bad debt provision provided individually | 115,324,894.46 | 4.64% | 115,324,894.46 | 100.00% | 0.00 | 115,340,991.62 | 5.04% | 115,340,991.62 | 100.00% | 0.00 |
| Account receivable with minor individual amount and bad debt provision provided individually | 11,696,165.30 | 0.47% | 11,696,165.30 | 100.00% | 0.00 | 11,696,165.30 | 0.51% | 11,696,165.30 | 100.00% | 0.00 |
| Account receivable for which bad debt provision is made by group | 2,357,100,687.64 | 94.89% | 238,196,191.85 | 10.11% | 2,118,904,495.79 | 2,159,461,958.27 | 94.44% | 226,696,269.23 | 10.50% | 1,932,765,689.04 |
| Including: | ||||||||||
| Account age | 2,349,960,687.64 | 94.60% | 238,196,191.85 | 10.14% | 2,111,764,495.79 | 2,159,461,958.27 | 94.44% | 226,696,269.23 | 10.50% | 1,932,765,689.04 |
| Asset status group - amount of real estate services sold by bank mortgage payment | 7,140,000.00 | 0.29% | 0.00 | 0.00% | 7,140,000.00 | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 |
| Total | 2,484,121,747.40 | 100.00% | 365,217,251.61 | 14.70% | 2,118,904,495.79 | 2,286,499,115.19 | 100.00% | 353,733,426.15 | 15.47% | 1,932,765,689.04 |
Separate bad debt provision:
In RMB RMB
| Name | Closing balance | |||
| Remaining book value | Bad debt provision | Provision rate | Reason | |
| Customer 1 | 54,488,612.90 | 54,488,612.90 | 100.00% | Customer credit status deteriorates and is not expected to be recovered |
| Customer 2 | 23,857,146.77 | 23,857,146.77 | 100.00% | Customer credit status deteriorates and is not expected to be recovered |
| Customer 3 | 21,739,381.96 | 21,739,381.96 | 100.00% | Customer credit status deteriorates and is not expected to be recovered |
| Customer 4 | 15,239,752.83 | 15,239,752.83 | 100.00% | Customer credit status deteriorates and is not expected to be recovered |
| Customer 5 | 9,071,535.95 | 9,071,535.95 | 100.00% | Customer credit status deteriorates and is not expected to be recovered |
| Customer 6 | 2,624,629.35 | 2,624,629.35 | 100.00% | Customer credit status deteriorates and is not expected to be recovered |
| -- | ||||
| Total | 127,021,059.76 | 127,021,059.76 | -- | -- |
Provision for bad debts by combination: ageing combination
In RMB RMB
| Name | Closing balance | ||
| Remaining book value | Bad debt provision | Provision rate | |
| Account age | 2,349,960,687.64 | 238,196,191.85 | 10.14% |
| Including: Less than 1 year | 1,316,400,399.53 | 21,347,072.62 | 1.62% |
| 1-2 years | 315,436,939.74 | 16,696,752.05 | 5.29% |
| 2-3 years | 479,388,387.38 | 58,947,402.12 | 12.30% |
| 3-4 years | 30.15% | ||
| 97,847,041.36 | 29,501,993.23 | ||
| 4-5 years | 62,534,358.77 | 33,349,410.98 | 53.33% |
| Over 5 years | 78,353,560.86 | 78,353,560.86 | 100.00% |
| Total | 2,349,960,687.64 | 238,196,191.85 | -- |
Provision for bad debts by combination: assets state combination
| Name | Closing balance | ||
| Remaining book value | Bad debt provision | Provision rate | |
| Asset status group - amount of real estate services sold by bank mortgage payment | 7,140,000.00 | 0.00 | 0.00% |
| Total | 7,140,000.00 | 0.00 | -- |
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, pleaserefer to the disclosure of other receivables to disclose information about bad debts:
□ Applicable √ Inapplicable
Account age
In RMB RMB
| Age | Closing balance |
| Within 1 year (inclusive) | 1,323,540,399.53 |
| 1-2 years | 315,436,939.74 |
| 2-3 years | 479,388,387.38 |
| Over 3 years | 365,756,020.75 |
| 3-4 years | 97,847,041.36 |
| 4-5 years | 62,534,358.77 |
| Over 5 years | 205,374,620.62 |
| Total | 2,484,121,747.40 |
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information DisclosureGuideline No.6 – Listed Companies Engaged in Decoration Business.Account receivables for that have a single major amount over three years:
| Customer | Balance of accounts receivable of over 3 years | Bad debt provision corresponding to accounts receivable | Reason of the age | Whether there is a risk of recovery |
| Customer 1 | 12,304,991.24 | 12,304,991.24 | Not settled | No |
| Customer 2 | 16,720,646.17 | 8,257,370.58 | Not settled | No |
| Customer 3 | 11,252,441.38 | 11,252,441.38 | Not settled | No |
| Customer 4 | 25,419,437.23 | 9,992,772.71 | Not settled | No |
| Customer 5 | 17,236,181.15 | 13,248,481.17 | Not settled | No |
| Customer 6 | 15,239,752.83 | 15,239,752.83 | Customer credit status deteriorates | Yes |
| Customer 7 | 52,147,883.25 | 52,147,883.25 | Customer credit status deteriorates | Yes |
| Customer 8 | 23,845,280.56 | 23,845,280.56 | Customer credit status deteriorates | Yes |
| Total | 174,166,613.80 | 146,288,973.71 |
(2) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB RMB
| Type | Opening balance | Change in the period | Closing balance | ||
| Provision | Written-back or recovered | Canceled | |||
| Account age | 226,696,269.23 | 11,592,327.74 | 92,405.12 | 238,196,191.85 | |
| Separate provision | 127,037,156.92 | 16,097.16 | 127,021,059.76 | ||
| Total | 353,733,426.15 | 11,592,327.74 | 108,502.28 | 365,217,251.61 | |
(3) Balance of top 5 accounts receivable at the end of the period
The total balance of top-five accounts receivable at the end of the period is RMB432,760,086.90, accounting for 17.42% of the totalremaining balance of all accounts receivable. The bad debt provision made at the end of the period is RMB24,198,556.99.
(4) Receivables derecognized due to transfer of financial assets
The amount of accounts receivable that were terminated due to the handling of accounts receivable factoring was RMB23,199,471.52,and the related losses were RMB1,483,903.77.
6. Prepayment
(1) Account age of prepayments
In RMB RMB
| Age | Closing balance | Opening balance | ||
| Amount | Proportion | Amount | Proportion | |
| Less than 1 year | 69,451,482.64 | 94.44% | 43,589,102.44 | 93.82% |
| 1-2 years | 2,437,763.23 | 3.31% | 1,521,693.56 | 3.28% |
| 2-3 years | 569,443.33 | 0.77% | 444,183.24 | 0.96% |
| Over 3 years | 1,081,617.88 | 1.47% | 899,865.50 | 1.94% |
| Total | 73,540,307.08 | -- | 46,454,844.74 | -- |
(2) Balance of top 5 prepayments at the end of the period
The total of top5 prepayments in terms of the prepaid entities in the period is RMB47,237,577.13, accounting for 64.23 % of the totalprepayments at the end of the period.
7. Other receivables
In RMB RMB
| Item | Closing balance | Opening balance |
| Interest receivable | 366,666.66 | |
| Other receivables | 162,169,869.87 | 142,135,200.55 |
| Total | 162,536,536.53 | 142,135,200.55 |
(1) Receivable interest
1) Receivable interest
In RMB RMB
| Item | Closing balance | Opening balance |
| Short-term loans | 366,666.66 | |
| Total | 366,666.66 |
2) Method of bad debt provision
□ Applicable √ Inapplicable
(2) Other receivables
1) Other receivables are disclosed by nature
In RMB RMB
| By nature | Closing balance of book value | Opening balance of book value |
| Deposit | 119,215,299.78 | 113,697,386.43 |
| Construction borrowing and advanced payment | 33,188,517.83 | 32,493,474.69 |
| Staff borrowing and petty cash | 2,825,341.40 | 2,717,122.22 |
| Receivable refund of VAT | 1,602,636.19 | 1,334,691.51 |
| Luo Huichi | 13,030,000.00 | 13,030,000.00 |
| Others | 23,435,807.57 | 17,602,550.86 |
| Total | 193,297,602.77 | 180,875,225.71 |
2) Method of bad debt provision
In RMB RMB
| Bad debt provision | First stage | Second stage | Third stage | Total |
| Expected credit losses in the next 12 months | Expected credit loss for the entire duration (no credit impairment) | Expected credit loss for the entire duration (credit impairment has occurred) | ||
| Balance on January 1, 2019 | 2,515,904.25 | 12,151.99 | 36,211,968.92 | 38,740,025.16 |
| Balance on January 1, 2019 in the current period | - | |||
| -- transferred to the third stage | -89.40 | -360.00 | 449.40 | - |
| Provision | 510,666.88 | - | 1,957,198.21 | 2,467,865.09 |
| Transferred back in the current period | 204,996.16 | 5,207.82 | 9,371,670.75 | 9,581,874.73 |
| Canceled in the current period | - | - | 498,282.61 | 498,282.61 |
| Balance on June 30, 2019 | 2,821,485.56 | 6,584.17 | 28,299,663.17 | 31,127,732.90 |
Changes in book balances with significant changes in the current period
□ Applicable √ Inapplicable
Account age
In RMB RMB
| Age | Closing balance |
| Within 1 year (inclusive) | 130,546,068.15 |
| Less than 1 year | 130,546,068.15 |
| 1-2 years | 26,363,457.85 |
| 2-3 years | 3,236,784.03 |
| Over 3 years | 33,151,292.74 |
| 3-4 years | 5,298,345.47 |
| 4-5 years | 10,527,048.10 |
| Over 5 years | 17,325,899.17 |
| Total | 193,297,602.77 |
3) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB RMB
| Type | Opening balance | Change in the period | Closing balance | ||
| Provision | Written-back or recovered | Canceled | |||
| Other receivables and bad debt provision | 38,740,025.16 | 2,467,865.09 | 9,581,874.73 | 498,282.61 | 31,127,732.90 |
| Total | 38,740,025.16 | 2,467,865.09 | 9,581,874.73 | 498,282.61 | 31,127,732.90 |
4) Other receivable written off in the current period
In RMB RMB
| Item | Amount |
| Other receivable written off | 498,282.61 |
5) Balance of top 5 other receivables at the end of the period
In RMB RMB
| Entity | By nature | Closing balance | Age | Percentage (%) | Balance of bad debt provision at the end of the period |
| Shenzhen Yikang Real Estate Co. Ltd. | Deposit and advancement | 70,000,000.00 | Less than 1 year | 36.21% | 1,043,000.00 |
| Bangshen Electronics (Shenzhen) Co., Ltd. | Deposit | 20,000,000.00 | 1-2 years | 10.35% | 298,000.00 |
| Shenzhen Tianyi Xinglong Industrial Co. Ltd. | Short-term loans | 15,000,000.00 | Less than 1 year | 7.76% | 223,500.00 |
| Luo Huichi | Advancement | 13,030,000.00 | Over 5 years | 6.74% | 13,030,000.00 |
| Lanzhou Railway Transport Co., Ltd. | Deposit | 6,931,316.60 | 4-5 years | 3.59% | 103,276.62 |
| Total | -- | 124,961,316.60 | -- | 64.65% | 14,697,776.62 |
8. Inventories
Whether the new revenue guidelines are implemented
□ Yes √ No
(1) Classification of inventories
In RMB RMB
| Item | Closing balance | Opening balance | ||||
| Remaining book value | Depreciation provision | Book value | Remaining book value | Depreciation provision | Book value | |
| Raw materials | 65,254,311.96 | 608,404.99 | 64,645,906.97 | 61,897,942.32 | 608,404.99 | 61,289,537.33 |
| Product in process | 14,322,898.95 | 14,322,898.95 | 24,655,294.74 | 24,655,294.74 | ||
| Finished goods in stock | 11,776,275.15 | 11,776,275.15 | 5,611,267.61 | 5,611,267.61 | ||
| Turnover materials | 45,080.77 | 45,080.77 | 25,215.87 | 25,215.87 | ||
| Assets unsettled for finished construction contracts | 141,287,728.84 | 1,603,589.59 | 139,684,139.25 | 153,610,458.94 | 1,603,589.59 | 152,006,869.35 |
| Development cost | 382,164,950.93 | 382,164,950.93 | 232,622,862.96 | 232,622,862.96 | ||
| Development products | 195,773,702.31 | 62,777,961.10 | 132,995,741.21 | 235,332,474.86 | 62,777,961.10 | 172,554,513.76 |
| OEM materials | 4,760,546.83 | 4,760,546.83 | 2,640,270.67 | 2,640,270.67 | ||
| Total | 815,385,495.74 | 64,989,955.68 | 750,395,540.06 | 716,395,787.97 | 64,989,955.68 | 651,405,832.29 |
Whether Company needs to comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information DisclosureGuideline No.4 – Listed Companies Engaged in Seed and Plantation BusinessNo
(2) Inventory depreciation provision
In RMB RMB
| Item | Opening balance | Increase in this period | Decrease in this period | Closing balance | ||
| Provision | Others | Recover or write-off | Others | |||
| Raw materials | 608,404.99 | 608,404.99 | ||||
| Assets unsettled for finished construction contracts | 1,603,589.59 | 1,603,589.59 | ||||
| Development products | 62,777,961.10 | 62,777,961.10 | ||||
| Total | 64,989,955.68 | 64,989,955.68 |
(3) Balance at the end of the period includes capitalization of borrowing expenseThe balance at the end of the period includes capitalization of borrowing expense of Fangda Town project of RMB8,556,289.84. Thecapitalization amount of cumulative borrowing expenses is RMB162,497,489.70, of which RMB0.00 occurred in this year.
(4) Assets unsettled for finished construction contracts at the end of the period
In RMB RMB
| Item | Amount |
| Accumulative occurred costs | 7,692,637,956.84 |
| Accumulative recognized gross margin | 1,144,425,387.77 |
| Less: estimated loss | 1,603,589.59 |
| Settled amount | 8,695,775,615.77 |
| Assets unsettled for finished construction contracts | 139,684,139.25 |
Others:
9. Other current assets
Whether the new revenue guidelines are implemented
□ Yes √ No
In RMB RMB
| Item | Closing balance | Opening balance |
| Overpaid or prepaid VAT | 12,005,792.40 | 264,337.68 |
| Input tax to be deducted | 14,865,684.27 | 38,782,071.20 |
| Tax to be input | 53,171,279.10 | 12,498,193.14 |
| Bank financial products | 9,900,000.00 | |
| Prepaid income tax | 4,134,958.16 | 3,469.12 |
| Other prepaid taxes | ||
| Trusted loans | 20,000,000.00 | |
| Others | 216,674.88 | 150,040.00 |
| Total | 114,294,388.81 | 51,698,111.14 |
Others:
10. Long-term share equity investment
In RMB RMB
| Invested entity | Opening balance | Change (+,-) | Closing balance | Balance of impairment provision at the end of the period | |||||||
| Increased investment | Decreased investment | Investment gain and loss recognized using the equity method | Other miscellaneous income adjustment | Other equity change | Cash dividend or profit announced | Impairment provision | Others | ||||
| 1. Joint venture | |||||||||||
| 2. Associate | |||||||||||
| Shenzhen Ganshang Joint Investment Co., Ltd. | 8,351,180.78 | 9,293.57 | 8,360,474.35 | ||||||||
| Shenzhen Huihai Yirong Internet Service Co., Ltd. | 6,071,585.28 | 390.12 | 6,071,975.40 | ||||||||
| Jiangxi Business Innovative Property Joint Stock Co., Ltd. | 55,682,891.82 | -335,417.24 | 55,347,474.58 | ||||||||
| Subtotal | 70,105,657.88 | -325,733.55 | 69,779,924.33 | ||||||||
| Total | 70,105,657.88 | -325,733.55 | 69,779,924.33 | ||||||||
11. Investment in other equity tools
In RMB RMB
| Item | Closing balance | Opening balance |
| Financial assets measured at fair value | 21,674,008.23 | 21,674,008.23 |
| with variations accounted into current income account | ||
| Total | 21,674,008.23 | 21,674,008.23 |
Sub-disclosure of non-tradable equity instrument investment in the current period
In RMB RMB
| Project | Dividend recognized in the period | Total gain | Total loss | Amount of other comprehensive income transferred to retained earnings | Reason for measurement at fair value with variations accounted into current income account | Reason for transfer of other miscellaneous into income |
| Investment in Shenyang Fangda | 6,888,567.44 | The investment is a non-trading equity instrument investment |
Others:
12. Investment real estates
(1) Investment real estate measured at costs
√ Applicable □ Inapplicable
In RMB RMB
| Item | Houses & buildings | Land using right | Construction in process | Total |
| I. Book value | ||||
| 1. Opening balance | 33,376,276.41 | 33,376,276.41 | ||
| 2. Increase in this period | ||||
| (1) External purchase | ||||
| (2) Transfer-in from inventory\fixed assets\construction in progress | ||||
| (3) Increase due to enterprise merger | ||||
| 3. Decrease in this period | ||||
| (1) Disposal | ||||
| (2) Other transfer-out |
| 4. Closing balance | 33,376,276.41 | 33,376,276.41 | ||
| II. Accumulative depreciation and amortization | ||||
| 1. Opening balance | 7,829,937.28 | 7,829,937.28 | ||
| 2. Increase in this period | 431,100.48 | 431,100.48 | ||
| (1) Provision or amortization | 431,100.48 | 431,100.48 | ||
| 3. Decrease in this period | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4. Closing balance | 8,261,037.76 | 8,261,037.76 | ||
| III. Impairment provision | ||||
| 1. Opening balance | ||||
| 2. Increase in this period | ||||
| (1) Provision | ||||
| 3. Decrease in this period | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4. Closing balance | ||||
| IV. Book value | ||||
| 1. Closing book value | 25,115,238.65 | 25,115,238.65 | ||
| 2. Opening book value | 25,546,339.13 | 25,546,339.13 |
(2) Investment real estate measured at fair value
√ Applicable □ Inapplicable
In RMB RMB
| Item | Houses & buildings | Land using right | Construction in process | Total |
| I. Opening balance | 5,230,896,067.50 | 5,230,896,067.50 | ||
| II. Change in this period | 29,292,017.43 | 29,292,017.43 |
| Add: external purchase | 29,292,017.43 | 29,292,017.43 | ||
| Transfer-in from inventory\fixed assets\construction in progress | ||||
| Increase due to enterprise merger | ||||
| Less: disposal | ||||
| Other transfer-out | ||||
| Change in fair value | ||||
| III. Closing balance | 5,260,188,084.93 | 5,260,188,084.93 |
(3) Investment real estate without ownership certificate
In RMB RMB
| Item | Book value | Reason |
| Fangda Square phase 2 (building 1#) | 3,693,096,836.44 | Conditions for applying for property right are not met |
Other note
13. Fixed assets
In RMB RMB
| Item | Closing balance | Opening balance |
| Fixed assets | 431,948,450.66 | 455,274,241.83 |
| Total | 431,948,450.66 | 455,274,241.83 |
(1) Fixed assets
In RMB RMB
| Item | Houses & buildings | PV power plants | Mechanical equipment | Transportation facilities | Electronics and other devices | Total |
| I. Original book value: | ||||||
| 1. Opening balance | 358,968,236.21 | 129,598,135.58 | 121,456,045.88 | 20,192,421.26 | 50,661,366.23 | 680,876,205.16 |
| 2. Increase in | 11,551.72 | 396,551.70 | 1,155,627.85 | 404,586.24 | 1,968,317.51 |
| this period | ||||||
| (1) Purchase | 11,551.72 | 396,551.70 | 599,593.36 | 404,586.24 | 1,412,283.02 | |
| (2) Transfer-in of construction in progress | 556,034.49 | 556,034.49 | ||||
| (3) Increase due to enterprise merger | ||||||
| 3. Decrease in this period | 17,407,839.09 | 409,874.13 | 17,817,713.22 | |||
| (1) Disposal or retirement | 17,407,839.09 | 409,874.13 | 17,817,713.22 | |||
| 4. Closing balance | 341,571,948.84 | 129,598,135.58 | 121,852,597.58 | 21,348,049.11 | 50,656,078.34 | 665,026,809.45 |
| II. Accumulative depreciation | ||||||
| 1. Opening balance | 64,933,358.20 | 16,053,677.73 | 97,725,735.85 | 14,703,576.75 | 27,741,708.68 | 221,158,057.21 |
| 2. Increase in this period | 4,689,117.20 | 3,077,696.52 | 1,985,326.22 | 649,658.42 | 1,050,166.12 | 11,451,964.48 |
| (1) Provision | 4,689,117.20 | 3,077,696.52 | 1,985,326.22 | 649,658.42 | 1,050,166.12 | 11,451,964.48 |
| 3. Decrease in this period | 522,267.50 | 363,784.90 | 886,052.40 | |||
| (1) Disposal or retirement | 522,267.50 | 363,784.90 | 886,052.40 | |||
| 4. Closing balance | 69,100,207.90 | 19,131,374.25 | 99,711,062.07 | 15,353,235.17 | 28,428,089.90 | 231,723,969.29 |
| III. Impairment provision | ||||||
| 1. Opening balance | 3,089,516.62 | 1,354,389.50 | 4,443,906.12 | |||
| 2. Increase in this period |
| (1) Provision | ||||||
| 3. Decrease in this period | 3,089,516.62 | 3,089,516.62 | ||||
| (1) Disposal or retirement | 3,089,516.62 | 3,089,516.62 | ||||
| 4. Closing balance | 1,354,389.50 | 1,354,389.50 | ||||
| IV. Book value | ||||||
| 1. Closing book value | 272,471,740.95 | 110,466,761.33 | 20,787,146.01 | 5,994,813.94 | 22,227,988.44 | 431,948,450.67 |
| 2. Opening book value | 290,945,361.39 | 113,544,457.85 | 22,375,920.53 | 5,488,844.51 | 22,919,657.55 | 455,274,241.83 |
(2) Fixed assets without ownership certificate
In RMB RMB
| Item | Book value | Reason |
| Houses in Urumuqi for offsetting debt | 518,320.35 | Historical reasons |
| Yuehai Office Building C 502 | 133,669.53 | Historical reasons |
14. Construction in process
In RMB RMB
| Item | Closing balance | Opening balance |
| Construction in process | 90,993,650.25 | 58,269,452.72 |
| Total | 90,993,650.25 | 58,269,452.72 |
(1) Construction in progress
In RMB RMB
| Item | Closing balance | Opening balance | ||||
| Remaining book value | Impairment provision | Book value | Remaining book value | Impairment provision | Book value | |
| Chengda Fangda’s Xinjin energy-saving green curtain wall | 20,258,659.98 | 20,258,659.98 | 14,150,785.10 | 14,150,785.10 | ||
| project | ||||||
| 4th and 39th floors of Building 1 of Fangda Town | 44,573,553.71 | 44,573,553.71 | 42,648,816.23 | 42,648,816.23 | ||
| Fangda Group East China Construction Base Project | 26,059,712.42 | 26,059,712.42 | 1,368,127.25 | 1,368,127.25 | ||
| Pingxiang Xuanfeng Chayuan Photovoltaic Power Plant Network Security Protection and Increased Dispatching Data Network Technical Transformation Project | 101,724.14 | 101,724.14 | 101,724.14 | 101,724.14 | ||
| Total | 90,993,650.25 | 90,993,650.25 | 58,269,452.72 | 58,269,452.72 |
(2) Changes in major construction in process in this period
In RMB RMB
| Project | Budget | Opening balance | Increase in this period | +Amount transfer-in to fixed assets in this period | Other decrease in this period | Closing balance | Proportion of accumulative engineering investment in the budget | Project progress | Accumulative capitalized interest | Including: capitalized interest for the current period | Interest capitalization rate | Capital source |
| Chengda Fangda’s Xinjin energy-saving green curtain | 32,317,700.00 | 14,150,785.10 | 6,663,909.37 | 556,034.49 | 20,258,659.98 | 64.41% | 64.41% | Others |
| wall project | ||||||||||||
| 4th and 39th floors of Building 1 of Fangda Town | 78,713,272.01 | 42,648,816.23 | 1,924,737.48 | 44,573,553.71 | 56.63% | 56.63% | 3,253,136.04 | Loans from financial institutions | ||||
| Fangda Group East China Construction Base Project | 92,537,767.36 | 1,368,127.25 | 24,691,585.17 | 26,059,712.42 | 28.16% | 28.16% | Others | |||||
| Total | 203,568,739.37 | 58,167,728.58 | 33,280,232.02 | 556,034.49 | 90,891,926.11 | -- | -- | 3,253,136.04 | -- |
15. Intangible assets
(1) Intangible assets
In RMB RMB
| Item | Land using right | Patent | Unpatented technologies | Computer software | Total |
| I. Book value | |||||
| 1. Opening balance | 78,910,915.74 | 10,658,429.57 | 7,820,118.89 | 7,776,751.03 | 105,166,215.23 |
| 2. Increase in this period | 874,996.41 | 15,517.24 | 890,513.65 | ||
| (1) Purchase | 874,996.41 | 15,517.24 | 890,513.65 | ||
| 3. Decrease in this period | |||||
| (1) Disposal | |||||
| 4. Closing balance | 78,910,915.74 | 11,533,425.98 | 7,820,118.89 | 7,792,268.27 | 106,056,728.88 |
| II. Accumulative |
| amortization | |||||
| 1. Opening balance | 10,699,400.13 | 4,136,325.64 | 4,860,551.51 | 5,156,697.28 | 24,852,974.56 |
| 2. Increase in this period | 1,131,134.80 | 116,100.05 | 196,352.52 | 318,539.77 | 1,762,127.14 |
| (1) Provision | 1,131,134.80 | 116,100.05 | 196,352.52 | 318,539.77 | 1,762,127.14 |
| 3. Decrease in this period | |||||
| (1) Disposal | |||||
| 4. Closing balance | 11,830,534.93 | 4,252,425.69 | 5,056,904.03 | 5,475,237.05 | 26,615,101.70 |
| III. Impairment provision | |||||
| 1. Opening balance | |||||
| 2. Increase in this period | |||||
| (1) Provision | |||||
| 3. Decrease in this period | |||||
| (1) Disposal | |||||
| 4. Closing balance | |||||
| IV. Book value | |||||
| 1. Closing book value | 67,080,380.81 | 7,281,000.29 | 2,763,214.86 | 2,317,031.22 | 79,441,627.18 |
| 2. Opening book value | 68,211,515.61 | 6,522,103.93 | 2,959,567.38 | 2,620,053.75 | 80,313,240.67 |
Intangible asset formed by internal R&D of the period takes up 3.35% in the closing total book value of intangible assets.
(2) Failure to obtain the land use right certificates
In RMB RMB
| Item | Book value | Reason |
| None |
16. Long-term amortizable expenses
In RMB RMB
| Item | Opening balance | Increase in this period | Amortized amount in this period | Other decrease | Closing balance |
| Xuanfeng Chayuan village and Zhuyuan village land transfer compensation | 1,196,831.78 | 28,050.78 | 1,168,781.00 | ||
| Dongguan separation project | 578,568.18 | 48,214.00 | 530,354.18 | ||
| Membership fee | 917,499.68 | 140,000.04 | 777,499.64 | ||
| Total | 2,114,331.46 | 578,568.18 | 216,264.82 | 2,476,634.82 |
Other note
17. Differed income tax assets and differed income tax liabilities
(1) Non-deducted deferred income tax assets
In RMB RMB
| Item | Closing balance | Opening balance | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Assets impairment provision | 555,303,413.82 | 100,709,002.53 | 548,921,196.79 | 99,738,006.66 |
| Deductible loss | 145,912,366.83 | 36,140,607.46 | 116,934,707.17 | 28,982,381.41 |
| Donation | 700,000.00 | 175,000.00 | 700,000.00 | 175,000.00 |
| Unrealizable gross profit | 127,495,913.33 | 31,873,978.34 | 171,832,174.62 | 42,958,043.66 |
| Reserved expense | 172,926,596.90 | 43,001,199.49 | 172,319,511.23 | 42,910,136.64 |
| Deferred earning | 768,110.52 | 110,691.46 | 2,588,555.38 | 383,758.20 |
| Anticipated liabilities | 6,672,052.01 | 1,000,807.80 | 6,831,162.99 | 1,024,674.45 |
| Arbitrage gain and loss | 1,625,725.00 | 243,858.75 | ||
| Provided unpaid taxes | 576,157,148.36 | 144,039,287.08 | 547,012,606.17 | 136,753,151.54 |
| Total | 1,585,935,601.77 | 357,050,574.16 | 1,568,765,639.35 | 353,169,011.31 |
(2) Non-deducted deferred income tax liabilities
In RMB RMB
| Item | Closing balance | Opening balance | ||
| Taxable temporary difference | Deferred income tax liabilities | Taxable temporary difference | Deferred income tax liabilities | |
| Gain/loss caused by changes in fair value | 4,059,173,007.74 | 1,014,793,251.92 | 4,059,575,421.10 | 1,014,893,855.26 |
| Estimated gross margin when Fangda Town records income, but does not reach the taxable income level | 116,989,503.25 | 29,247,375.80 | 108,771,380.35 | 27,192,845.09 |
| Arbitrage gain and loss | 17,375.00 | 2,606.25 | ||
| Total | 4,176,179,885.99 | 1,044,043,233.97 | 4,168,346,801.45 | 1,042,086,700.35 |
(3) Net deferred income tax assets or liabilities listed
In RMB RMB
| Item | Deferred income tax assets and liabilities at the end of the period | Offset balance of deferred income tax assets or liabilities after offsetting | Deferred income tax assets and liabilities at the beginning of the period | Offset balance of deferred income tax assets or liabilities after offsetting |
| Deferred income tax assets | 357,050,574.16 | 356,474,925.76 | ||
| Deferred income tax liabilities | 1,044,043,233.97 | 1,042,086,700.35 |
(4) Details of unrecognized deferred income tax assets
In RMB RMB
| Item | Closing balance | Opening balance |
| Deductible temporary difference | 411,124.79 | 144,013.55 |
| Deductible loss | 4,687,234.98 | 3,432,612.47 |
| Total | 5,098,359.77 | 3,576,626.02 |
(5) Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB RMB
| Year | Closing amount | Opening amount | Remark |
| 2022 | 1,093,587.53 | 1,093,587.53 | |
| 2023 | 2,309,302.94 | 2,339,024.94 | |
| 2024 | 1,284,344.51 | ||
| Total | 4,687,234.98 | 3,432,612.47 | -- |
Others:
18. Other non-current assets
Whether the new revenue guidelines are implemented
□ Yes √ No
In RMB RMB
| Item | Closing balance | Opening balance |
| Prepaid house and equipment amount | 23,877,762.00 | 19,296,006.00 |
| Prepayment of intangible assets | 64,077.67 | 64,077.67 |
| Total | 23,941,839.67 | 19,360,083.67 |
Others:
19. Short-term borrowings
(1) Classification of short-term borrowings
In RMB RMB
| Item | Closing balance | Opening balance |
| Guarantee loan | 400,000,000.00 | |
| Credit borrow | 8,000,000.00 | |
| Discount borrowing of acceptance bills | 500,000,000.00 | 200,000,000.00 |
| Total | 900,000,000.00 | 208,000,000.00 |
(2) Mature but not repaid short-term borrowings
None
20. Derivative financial liabilities
In RMB RMB
| Item | Closing balance | Opening balance |
| Futures contracts | 0.00 | 1,625,725.00 |
| Total | 0.00 | 1,625,725.00 |
Others:
21. Notes payable
In RMB RMB
| Type | Closing balance | Opening balance |
| Commercial acceptance | 62,482,744.62 | 89,593,075.92 |
| Bank acceptance | 471,074,585.78 | 418,271,442.27 |
| Total | 533,557,330.40 | 507,864,518.19 |
The total amount of payable bills that have matured but not been paid at the end of the period is RMB140,671.59.
22. Account payable
(1) Account payable
In RMB RMB
| Item | Closing balance | Opening balance |
| Account repayable and engineering repayables | 697,113,970.77 | 735,661,625.17 |
| Construction payable | 8,303,482.25 | 17,976,531.41 |
| Payable installation and implementation fees | 241,243,003.99 | 280,338,258.89 |
| Others | 6,637,939.57 | 5,654,383.17 |
| Total | 953,298,396.58 | 1,039,630,798.64 |
(2) Significant payables aging more than 1 year
In RMB RMB
| Item | Closing balance | Reason |
| Supplier 1 | 54,662,151.82 | Not mature |
| Supplier 2 | 4,952,636.16 | Not mature |
| Supplier 3 | 4,787,063.43 | Not mature |
| Supplier 4 | 4,685,268.91 | Not mature |
| Supplier 5 | 2,656,994.38 | Not mature |
| Total | 71,744,114.70 | -- |
23. Prepayment received
Whether the new revenue guidelines are implemented
□ Yes √ No
(1) Prepayment received
In RMB RMB
| Item | Closing balance | Opening balance |
| Curtain wall and screen door engineering payment | 123,111,480.41 | 223,438,696.72 |
| Material loan | 6,269,201.91 | 3,988,573.19 |
| Real estate sales payment | 1,500,000.00 | 49,542,377.00 |
| Others | 1,550,380.93 | 1,608,201.63 |
| Total | 132,431,063.25 | 278,577,848.54 |
(2) Significant prepayment aged more than 1 year
In RMB RMB
| Item | Closing balance | Reason |
| None |
(3) Assets settled for unfinished construction contracts at the end of the period
In RMB RMB
| Item | Amount |
| Accumulative occurred costs | 7,692,637,956.84 |
| Accumulative recognized gross margin | 1,144,425,387.77 |
| Less: estimated loss | 1,603,589.59 |
| Settled amount | 8,695,775,615.77 |
| Assets settled for unfinished construction contracts at the end of the period | 139,684,139.25 |
24. Employees’ wage payable
(1) Employees’ wage payable
In RMB RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| 1. Short-term remuneration | 44,497,660.77 | 136,339,637.60 | 156,927,275.35 | 23,910,023.02 |
| 2. Retirement pension program-defined | 15,401.40 | 5,043,692.50 | 5,043,692.50 | 15,401.40 |
| contribution plan | ||||
| 3. Dismiss compensation | 822,691.64 | 822,691.64 | ||
| Total | 44,513,062.17 | 142,206,021.74 | 162,793,659.49 | 23,925,424.42 |
(2) Short-term remuneration
In RMB RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| 1. Wage, bonus, allowance and subsidies | 42,874,045.67 | 128,937,448.36 | 149,544,326.01 | 22,267,168.02 |
| 2. Employee welfare | 36,000.00 | 3,062,035.64 | 3,059,611.64 | 38,424.00 |
| 3. Social insurance | 1,978,422.20 | 1,978,422.20 | ||
| Including: medical insurance | 1,649,105.46 | 1,649,105.46 | ||
| Labor injury insurance | 113,820.62 | 113,820.62 | ||
| Breeding insurance | 215,496.12 | 215,496.12 | ||
| 4. Housing fund | 70,162.00 | 2,091,365.79 | 2,046,747.79 | 114,780.00 |
| 5. Labor union budget and staff education fund | 1,517,453.10 | 270,365.61 | 298,167.71 | 1,489,651.00 |
| Total | 44,497,660.77 | 136,339,637.60 | 156,927,275.35 | 23,910,023.02 |
(3) Defined contribution plan
In RMB RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| 1. Basic pension | 15,401.40 | 4,884,912.46 | 4,884,912.46 | 15,401.40 |
| 2. Unemployment insurance | 158,780.04 | 158,780.04 | ||
| Total | 15,401.40 | 5,043,692.50 | 5,043,692.50 | 15,401.40 |
Others:
25. Taxes payable
In RMB RMB
| Item | Closing balance | Opening balance |
| VAT | 6,787,755.62 | 7,964,966.19 |
| Enterprise income tax | 9,802,627.08 | 96,212,929.73 |
| Personal income tax | 889,027.16 | 793,577.50 |
| City maintenance and construction tax | 1,113,929.01 | 1,234,675.98 |
| Land using tax | 394,688.91 | 242,021.60 |
| Property tax | 1,607,524.83 | 248,910.70 |
| Education surtax | 560,717.76 | 609,781.62 |
| Local education surtax | 235,466.39 | 278,944.66 |
| Others | 41,062.14 | 124,191.21 |
| Total | 21,432,798.90 | 107,709,999.19 |
Others:
26. Other payables
In RMB RMB
| Item | Closing balance | Opening balance |
| Interest payable | 2,423,014.69 | 2,098,971.44 |
| Other payables | 833,927,274.12 | 811,019,728.40 |
| Total | 836,350,288.81 | 813,118,699.84 |
(1) Interest payable
In RMB RMB
| Item | Closing balance | Opening balance |
| Long-term borrowing with interest installment and repayment of principal upon maturity | 1,994,724.40 | 2,087,371.44 |
| Short-term borrowing interests payable | 428,290.29 | 11,600.00 |
| Total | 2,423,014.69 | 2,098,971.44 |
Significant interest overdue but not paid
In RMB RMB
| Borrower | Overdue amount | Reason |
| None |
Others:
(2) Other payables
1) Other payables presented by nature
In RMB RMB
| Item | Closing balance | Opening balance |
| Performance and quality deposit | 51,980,294.06 | 47,901,945.63 |
| Reserved expense | 178,642,606.76 | 182,260,114.71 |
| Tax withheld | 576,157,148.36 | 547,012,606.17 |
| Fangda Town pledge | 100,000.00 | 22,236,150.00 |
| Others | 27,047,224.94 | 11,608,911.89 |
| Total | 833,927,274.12 | 811,019,728.40 |
(2) Significant payables aging more than 1 year
In RMB RMB
| Item | Closing balance | Reason |
| Tax withheld | 505,714,806.86 | See Note |
| Total | 505,714,806.86 | -- |
Other note
1. The tax withheld is the land VAT that needs to be settled and paid for the property delivered of the Fangda Town developed byFangda Property.
2. The major other payables aged over 1 year at the end of the year are mainly the land value-added tax of RMB505,714,806.86,which is not yet settled.
27. Non-current liabilities due within 1 year
In RMB RMB
| Item | Closing balance | Opening balance |
| Long-term loans due within 1 year | 800,000,000.00 | 200,000,000.00 |
| Total | 800,000,000.00 | 200,000,000.00 |
28. Other current liabilities
Whether the new revenue guidelines are implemented
□ Yes √ No
In RMB RMB
| Item | Closing balance | Opening balance |
| Substituted money on VAT | 10,023,641.11 | 9,328,682.25 |
| Total | 10,023,641.11 | 9,328,682.25 |
29. Long-term borrowings
(1) Classification of long-term borrowings
In RMB RMB
| Item | Closing balance | Opening balance |
| Loan by pledge | 493,978,153.39 | 693,978,153.39 |
| Guarantee loan | 100,000,000.00 | |
| Credit borrow | 500,000,000.00 | |
| Total | 593,978,153.39 | 1,193,978,153.39 |
Notes to classification of long-term borrowings:
The above-mentioned borrowing is the 100% stock pledging of Fangda Property Development held by the Company.
Other note, including interest rate range:
The interest rate of long-term borrowings ranges between 4.9875%-5.88%.
30. Anticipated liabilities
Whether the new revenue guidelines are implemented
□ Yes √ No
In RMB RMB
| Item | Closing balance | Opening balance | Reason |
| Maintenance fee | 6,672,052.01 | 6,831,162.99 | Estimated expense in the product quality warranty period |
| Total | 6,672,052.01 | 6,831,162.99 | -- |
31. Deferred earning
In RMB RMB
| Item | Opening balance | Increase | Decrease | Closing balance | Reason |
| Government subsidy | 10,401,161.30 | 800,000.00 | 244,419.98 | 10,956,741.32 | See Note |
| Total | 10,401,161.30 | 800,000.00 | 244,419.98 | 10,956,741.32 | -- |
Items involving government subsidies:
In RMB RMB
| Liabilities | Opening balance | Amount of new subsidy | Amount included in non-operating revenue | Other misc. gains recorded in this period | Costs offset in the period | Other change | Closing balance | Related to assets/earning |
| Major investment project prize from Industry and Trade Development Division of Dongguan Finance Bureau | 1,680,952.70 | 28,571.40 | 1,652,381.30 | Assets-related | ||||
| Massive production project of air-breathing double-layer hollow glass energy-saving curtain call | 7,393,855.79 | 61,993.62 | 7,331,862.17 | Assets-related | ||||
| Railway transport screen door controlling system and information transmission technology | 96,558.17 | 9,452.16 | 87,106.01 | Assets-related | ||||
| Distributed PV power generation project subsidy sponsored by Dongguan Reform and Development Commission | 418,750.13 | 12,499.98 | 406,250.15 | Assets-related | ||||
| Luxi county Xuanfeng town government business introduction subsidy | 181,004.51 | 1,862.82 | 179,141.69 | Assets-related |
| Shenzhen SME Service Bureau enterprise IT construction subsidy | 500,000.00 | 500,000.00 | Assets-related | |||||
| Shenzhen Science and Technology Innovation Committee Technology Innovation Subsidy | 130,040.00 | 130,040.00 | 0.00 | Earning-related | ||||
| East China base fixed assets renovation project | 800,000.00 | 800,000.00 | Assets-related | |||||
| Total | 10,401,161.30 | 800,000.00 | 244,419.98 | 10,956,741.32 |
Others:
1. The Dongguan Finance Bureau Industry and Trade Development Division major subsidy project is a subsidized project notstipulated in Dongguan Financial Circular [2013] No.779. As the project has formed into long-term assets, the Company treats it asan assets-related government subsidy.
2. The massive production project of air-breathing double-layer hollow glass energy-saving curtain wall is a subsidied projectstipulated in Guangdong Financial Doc [2013] No.183. As the project has formed into long-term assets, the Company treats it as anassets-related government subsidy.
3. The railway transport screen door controlling system and information transmission technology is a subsidized project stipulated inShenzhen Tech Innovation [2013] No.242. RMB300,000 is used to purchase equipment. Since the project will form long-term assets,the company will use RMB300,000 as a government subsidy related to Assets.
4. The Dongguan Municipal Development and Reform Commission on the organization of the Dongguan City distributedphotovoltaic power generation subsidy program is based on the "Dongguan Municipal Development and Reform Commission'sCircular on Organizing the Application of Dongguan Distributed PV Generation Capital Subsidy Project" for various types ofbuildings and structures using distributed photovoltaic power generation projects. Owners, according to the installed capacity of250,000 yuan / MW for a one-time grant, the maximum subsidy for a single project does not exceed 2 million yuan, because theproject is related to assets, the company will use it as a government subsidy related to assets.
5. The Xuanfeng Town Government Investment Promotion Subsidy Project of Luxi County promoted the development of the localeconomy. Xuanfeng Town Government of Luxi County introduced Luxin New Energy Company's solar photovoltaic powergeneration project and gave Luxin New Energy Corporation subsidies for obtaining state-owned construction land use rights. As thisproject is related to assets, the Company regards it as a government grant related to the assets.
6. The subsidy project of the Shenzhen Municipal Bureau of Small and Medium-sized Enterprises Service Enterprise Informatization
Project is based on the relevant provisions of the Interim Measures for the Management of Special Funds for the Development ofPrivate and Small and Medium-sized Enterprises in Shenzhen (SCC (2012) No. 177) issued by the Shenzhen Municipal Bureau ofSmall and Medium Business Administration. In 2017, the special fund enterprise informationization project subsidies, because theproject is related to assets, the company will use it as a government grant related to assets.
7. The subsidy project for the renovation and reconstruction of fixed assets of Huadong Base is funded by the Shanghai Economicand Information Commission according to the relevant provisions of the ―Administrative Measures for Special Funds for IndustrialTransformation and Upgrading in Shanghai‖ (Shanghai Economic and Trade Regulations [2015] No. 101). The project is related toassets and the company uses it as a government grant related to assets.
32. Capital share
In RMB
| Opening balance | Change (+,-) | Closing balance | |||||
| Issued new shares | Bonus shares | Transferred from reserves | Others | Subtotal | |||
| Total of capital shares | 1,155,481,686.00 | -32,097,497.00 | -32,097,497.00 | 1,123,384,189.00 | |||
Others:
1. The decrease in share capital was due to the repurchase and cancellation of B shares by the company during the reporting period.
2. As of June 30, 2019, there were 1,431,568 shares subject to sale restrictions at the end of the period, of which 1,431,568 were heldby natural persons.
33. Capital reserve
In RMB RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| Capital premium (share capital premium) | 94.24 | 94.24 | ||
| Other capital reserves | 1,454,097.35 | 1,454,097.35 | ||
| Total | 1,454,191.59 | 1,454,191.59 |
34. Shares in stock
In RMB RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| B share | 10,831,437.66 | 88,223,945.70 | 99,055,383.36 | 0.00 |
| Total | 10,831,437.66 | 88,223,945.70 | 99,055,383.36 | 0.00 |
Other note, including explanation about the reason of the change:
In the current period, the relevant proposals of the previous year continued to repurchase and cancel the treasury shares.
35. Other miscellaneous income
In RMB RMB
| Item | Opening balance | Amount occurred in the current period | Closing balance | |||||
| Amount before income tax | Less: amount written into other gains and transferred into gain/loss in previous terms | Less: amount written into other gains and transferred into gain/loss in previous terms | Less: Income tax expenses | After-tax amount attributed to the parent | After-tax amount attributed to minority shareholders | |||
| 1. Other misc. incomes that cannot be re-classified into gain and loss | -5,166,425.58 | -5,166,425.58 | ||||||
| Fair value change of investment in other equity tools | -5,166,425.58 | -5,166,425.58 | ||||||
| 2. Other misc. incomes that will be re-classified into gain and loss | 7,382,087.59 | 1,636,239.33 | 246,465.00 | 1,389,774.33 | 8,771,861.92 | |||
| Cash flow hedge reserve | -1,290,746.25 | 1,643,100.00 | 246,465.00 | 1,396,635.00 | 105,888.75 | |||
| Translation difference of foreign exchange statement | -83,719.62 | -6,860.67 | -6,860.67 | -90,580.29 | ||||
| Investment real estate measured at fair value | 8,756,553.46 | 8,756,553.46 | ||||||
| Other miscellaneous income | 2,215,662.01 | 1,636,239.33 | 246,465.00 | 1,389,774.33 | 3,605,436.34 | |||
36. Surplus reserves
In RMB RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| Statutory surplus reserves | 121,000,081.43 | 66,957,886.36 | 54,042,195.07 | |
| Total | 121,000,081.43 | 66,957,886.36 | 54,042,195.07 |
Note, including explanation about the reason of the change:
In the current period, according to the relevant resolutions of the previous year, the repurchase and cancellation of treasury shares
continued. The cost of canceled shares in stock was higher than the corresponding cost of equity, which offset the surplus reserve byRMB66,957,886.36.
37. Retained profit
In RMB RMB
| Item | Current period | Last period |
| Adjustment on retained profit of previous period | 3,921,225,872.96 | 1,863,191,218.58 |
| Total of retained profit at beginning of year adjusted (+ for increase, - for decrease) | 16,171,320.58 | |
| Retained profit adjusted at beginning of year | 3,937,397,193.54 | 1,863,191,218.58 |
| Plus: Net profit attributable to owners of the parent | 128,581,755.01 | 230,131,663.19 |
| Common share dividend payable | 224,676,837.79 | 177,546,338.10 |
| Closing retained profit | 3,841,302,110.76 | 1,915,776,543.67 |
Details of retained profit adjusted at beginning of the period
1) Retrospective adjustment due to adopting of the Enterprise Accounting Standard and related regulations, included the retainedprofit by RMB0.
2) Variation of accounting policies, influenced the retained profit by RMB16,171,320.58.
3) Correction of material accounting errors, influenced the retained profit by RMB0.
4) Change of consolidation range caused by merger of entities under common control, influenced the retained profit by RMB0.
5) Other adjustment influenced the retained profit by RMB0.
38. Operational revenue and costs
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period | ||
| Income | Cost | Income | Cost | |
| Main business | 1,385,429,784.95 | 1,055,781,224.98 | 1,426,207,018.36 | 925,306,886.60 |
| Other businesses | 40,461,162.04 | 10,284,745.58 | 15,843,878.17 | 10,179,289.13 |
| Total | 1,425,890,946.99 | 1,066,065,970.56 | 1,442,050,896.53 | 935,486,175.73 |
Whether the new revenue guidelines are implemented
□ Yes √ No
39. Taxes and surcharges
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| City maintenance and construction tax | 3,306,190.50 | 3,980,442.45 |
| Education surtax | 2,197,616.65 | 2,866,384.67 |
| Property tax | 2,367,178.99 | 2,556,126.19 |
| Land using tax | 772,262.35 | 808,834.13 |
| Vehicle usage tax | 15,960.00 | 15,240.00 |
| Stamp tax | 945,391.73 | 849,673.18 |
| Land VAT | 31,689,811.56 | 89,995,084.20 |
| Others | 186,588.29 | 132,410.21 |
| Total | 41,481,000.07 | 101,204,195.03 |
Others:
40. Sales expense
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Labor costs | 13,756,507.19 | 9,512,746.08 |
| Freight and miscellaneous charges | 2,552,065.93 | 2,569,313.15 |
| Travel expense | 684,332.50 | 1,011,110.84 |
| Entertainment expense | 979,949.90 | 727,599.36 |
| Material consumption | 135,028.48 | 252,088.61 |
| Office costs | 48,247.56 | 79,998.75 |
| Rental | 952,964.78 | 388,001.26 |
| Advertisement and promotion fee | 865,854.97 | 932,974.88 |
| Sales agency fee | 5,943,528.83 | 8,390,339.52 |
| Others | 1,257,158.36 | 3,195,968.79 |
| Total | 27,175,638.50 | 27,060,141.24 |
41. Management expenses
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Labor costs | 47,235,320.97 | 36,024,438.72 |
| Depreciation and amortization | 4,810,846.91 | 5,262,351.65 |
| Agencies | 4,403,164.17 | 2,730,309.05 |
| Maintenance costs | 7,845,937.09 | 6,232,422.69 |
| Water and electricity | 351,795.21 | 412,734.95 |
| Office expense | 1,263,021.34 | 990,189.00 |
| Travel expense | 993,288.82 | 1,085,683.50 |
| Entertainment expense | 1,676,576.80 | 1,480,838.65 |
| Rental | 752,831.06 | 1,304,120.83 |
| Lawsuit | 337,101.22 | 249,102.52 |
| Material consumption | 145,197.52 | 226,800.03 |
| Property management fee | 666,254.99 | 573,368.00 |
| Others | 12,197,441.46 | 9,966,826.30 |
| Total | 82,678,777.56 | 66,539,185.89 |
42. R&D cost
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Labor costs | 9,107,318.28 | 6,410,404.69 |
| Material costs | 1,605,931.43 | 387,693.59 |
| Rental | 938,339.52 | 509,554.85 |
| Depreciation costs | 304,783.16 | 204,554.41 |
| Amortization of intangible assets | 41,402.02 | 45,617.91 |
| Travel expense | 43,113.02 | 46,575.55 |
| Maintenance costs | 44,792.26 | 43,032.86 |
| Test and experiment costs | 2,141,801.56 | 122,712.91 |
| Patent maintenance costs | 299,269.18 | 123,047.92 |
| Others | 175,922.69 | 102,205.22 |
| Total | 14,702,673.12 | 7,995,399.91 |
43. Financial expenses
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Interest expense | 41,338,886.48 | 39,431,773.93 |
| Less: interest capitalization | 0.00 | 7,292,522.11 |
| Less: discount government subsidies | 862,000.00 | 0.00 |
| Less: Interest income | 2,439,090.91 | 3,715,935.93 |
| Acceptant discount | 8,563,237.66 | 5,151,856.26 |
| Exchange gain/loss | 99,040.10 | -328,681.30 |
| Commission charges and others | 2,781,267.03 | 525,830.83 |
| Total | 49,481,340.36 | 33,772,321.68 |
44. Other gains
In RMB RMB
| Source | Amount occurred in the current period | Occurred in previous period |
| Integration sponsorship | 200,000.00 | 100,000.00 |
| Nanshan District independent innovation industry development special fund | 500,000.00 | 0 |
| R&D subsidy | 696,000.00 | 1,113,000.00 |
| VAT rebated | 1,359,044.12 | 945,948.64 |
| Enterprise innovation ability cultivation and support | 508,000.00 | 0 |
| VAT income tax refund | 95,000.00 | 0 |
| 2018 Shenzhen standard allowance | 102,000.00 | 0 |
| Significant industrial and trade development investment project award | 28,571.40 | 28,571.40 |
| Self-breathing dual-layer hallow grass energy-saving curtain wall development project | 61,993.62 | 61,993.62 |
| Innovation award | 36,500.00 | 0 |
| Hi-tech enterprise award | 100,000.00 | 0 |
| Science and Technology Commission innovation coupon | 130,040.00 | 0 |
| Patent and intellectual property right subsidy | 0 | 61,500.00 |
| Childbearing subsidy | 112,877.76 | 34,353.92 |
| Industrial growth prize | 0.00 | 300,000.00 |
| Others | 71,423.61 | 53,824.00 |
| Total | 4,001,450.51 | 2,699,191.58 |
45. Investment income
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Gains from long-term equity investment | -325,733.55 | -1,071,000.77 |
| measured by equity | ||
| Investment income of trading financial assets during the holding period | 17,359,985.03 | 9,187,877.90 |
| Investment income from disposal of trading financial assets | -16,598,749.99 | |
| Investment gain of financial products | 4,003,332.19 | 18,127,885.28 |
| Others | -382,436.52 | |
| Total | 4,056,397.16 | 26,244,762.41 |
Others:
46. Income from fair value fluctuation
In RMB RMB
| Source of income from fluctuation of fair value | Amount occurred in the current period | Occurred in previous period |
| Transactional financial assets | 121,506.67 | -8,572,843.25 |
| Investment real estate measured at fair value | -323,794.00 | |
| Total | 121,506.67 | -8,896,637.25 |
Others:
Credit impairment loss
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Bad debt loss of other receivables | 7,114,165.08 | |
| Bad debt of account receivable | -11,483,825.46 | |
| Total | -4,369,660.38 |
48. Assets impairment loss
Whether the new revenue guidelines are implemented
□ Yes √ No
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| 1. Bad debt loss | -1,854,963.05 | |
| Total | -1,854,963.05 |
49. Assets disposal gains
In RMB RMB
| Source | Amount occurred in the current period | Occurred in previous period |
| Gain and loss from disposal of fixed assets ("-" for loss) | -27,108.78 | -1,551,291.52 |
| Total | -27,108.78 | -1,551,291.52 |
50. Non-business income
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period | Amount accounted into the current accidental gain/loss |
| Government subsidy | 303,119.83 | ||
| Penalty income | 401,931.00 | 213,905.88 | 401,931.00 |
| Compensation received | 4,378,501.74 | 1,500,000.00 | 4,378,501.74 |
| Penalty received | 18,200.00 | ||
| VAT rebated into revenue | |||
| Payable account not able to be paid | 1,350.91 | 0.20 | 1,350.91 |
| Others | 92,108.50 | 5,030,812.50 | 92,108.50 |
| Total | 4,873,892.15 | 7,066,038.41 | 4,873,892.15 |
51. Non-business expenses
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period | Amount accounted into the current accidental gain/loss |
| Donation | 122,000.00 | 122,000.00 | |
| Loss of non-current assets disposal | 30,871.84 | 14,020.21 | 30,871.84 |
| Penalty and overdue fine | 81,936.95 | 225,047.87 | 81,936.95 |
| Lawsuit indemnity | 143,641.00 | 0.00 | 143,641.00 |
| Others | 116.01 | 283,092.35 | 116.01 |
| Total | 378,565.80 | 522,160.43 | 378,565.80 |
52. Income tax expenses
(1) Details about income tax expense
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Income tax expenses in this period | 26,190,753.94 | 48,132,940.61 |
| Deferred income tax expenses | -2,171,494.23 | 14,913,239.34 |
| Total | 24,019,259.71 | 63,046,179.95 |
(2) Adjustment process of accounting profit and income tax expense
In RMB RMB
| Item | Amount occurred in the current period |
| Total profit | 152,583,458.35 |
| Income tax expenses calculated based on the legal (or applicable) tax rates | 38,145,864.59 |
| Impacts of different tax rates applicable for some subsidiaries | -11,360,493.17 |
| Impacts of income tax before adjustment | 1,081,367.08 |
| Impact of non-taxable income | -4,339,996.26 |
| Impacts of non-deductible cost, expense and loss | 456,659.18 |
| Deductible temporary difference and deductible loss of unrecognized deferred income tax assets | 380,433.44 |
| Profit and loss of associates and joint ventures calculated using the equity method | 81,433.39 |
| Taxation impact of R&D expense and (presented with ―-‖) | -1,039,008.70 |
| Others | 613,000.16 |
| Income tax expenses | 24,019,259.71 |
Other note
53. Other miscellaneous income
See Note VII 35.
54. Notes to the cash flow statement
(1) Other cash inflow related to operation
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Interest income | 901,193.29 | 2,872,253.69 |
| Subsidy income | 3,590,774.08 | 2,028,279.98 |
| Retrieving of deposits for exchange bills | 7,101,000.00 | |
| Retrieving of bidding deposits | 37,655,725.50 | 224,435,277.86 |
| Other operating accounts | 5,860,054.56 | 6,855,911.78 |
| Total | 48,007,747.43 | 243,292,723.31 |
(2) Other cash paid related to operation
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Administrative expense | 20,255,645.25 | 12,475,066.93 |
| Sales expense | 11,139,215.49 | 3,036,411.56 |
| Bidding deposit paid | 109,314,906.03 | 282,540,434.70 |
| Net draft deposit net paid | 161,663,318.36 | |
| Other trades | 4,842,346.84 | 15,465,822.42 |
| Total | 307,215,431.97 | 313,517,735.61 |
(3) Other cash received related to financing
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| B shares repurchased excess fund recovery | 39,406.61 | |
| Total | 39,406.61 |
(4) Other cash paid related to financing
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Payment note discounted loan guarantee | 40,000,000.00 | |
| Total | 40,000,000.00 |
55. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB RMB
| Supplementary information | Amount of the Current Term | Amount of the Previous Term |
| 1. Net profit adjusted to cash flow related to business operations: | -- | -- |
| Net profit | 128,564,198.64 | 230,131,663.19 |
| Plus: Asset impairment provision | -4,369,660.38 | 1,854,963.05 |
| Fixed asset depreciation, gas and petrol depreciation, production goods depreciation | 11,883,064.96 | 10,105,993.76 |
| Amortization of intangible assets | 1,762,127.14 | 986,452.62 |
| Amortization of long-term amortizable expenses | 216,264.82 | 348,502.82 |
| Loss from disposal of fixed assets, intangible assets, and other long-term assets (―-― for gains) | 27,108.78 | -1,551,865.58 |
| Loss from fixed asset discard (―-― for gains) | 30,871.84 | 743.00 |
| Loss from fair value fluctuation (―-― for gains) | -121,506.67 | 8,896,637.25 |
| Financial expenses (―-― for gains) | 49,040,124.14 | 31,237,594.20 |
| Investment losses (―-― for gains) | -4,056,397.16 | -26,244,762.41 |
| Decrease of deferred income tax asset (―-― for increase) | -3,881,562.85 | -15,384,604.80 |
| Increase of deferred income tax asset (―-― for increase) | 1,956,533.62 | 30,132,027.71 |
| Decrease of inventory (―-― for increase) | 33,483,787.38 | 93,221,757.37 |
| Decrease of operational receivable items (―-― for increase) | -164,044,489.43 | -225,446,791.23 |
| Increase of operational receivable items (―-― for decrease) | -351,001,350.74 | -119,226,407.78 |
| Others | -72,214,117.20 | -50,488,170.81 |
| Cash flow generated by business operations, net | -372,725,003.11 | -31,426,267.64 |
| 2. Major investment and financing activities with no cash involved: | -- | -- |
| 3. Net change in cash and cash equivalents: | -- | -- |
| Balance of cash at period end | 380,145,526.85 | 951,511,945.70 |
| Less: Initial balance of cash | 956,190,890.68 | 931,285,535.55 |
| Net increase in cash and cash equivalents | -576,045,363.83 | 20,226,410.15 |
(2) Net cash paid to subsidiaries acquired in the current period
In RMB RMB
| Amount | |
| Cash or cash equivalents paid by the business combination in the current period | 61,937,324.17 |
| Including: | -- |
| Purchase 55% equity of Zhongrong Litai Co., Ltd. | 61,937,324.17 |
| Less: cash and cash equivalent held by subsidiaries on the date of purchase | 2,493.86 |
| Including: | -- |
| Zhongrong Litai | 2,493.86 |
| Including: | -- |
| Net cash paid for acquiring subsidiaries | 61,934,830.31 |
Others:
(3) Composition of cash and cash equivalents
In RMB RMB
| Item | Closing balance | Opening balance |
| I. Cash | 380,145,526.85 | 956,190,890.68 |
| Including: Cash in stock | 3,448.76 | 5,167.01 |
| Bank savings can be used at any time | 377,446,721.38 | 953,231,178.60 |
| Other monetary capital can be used at any time | 2,695,356.71 | 2,954,545.07 |
| III. Balance of cash and cash equivalents at end of term | 380,145,526.85 | 956,190,890.68 |
| Including: restricted cash and cash equivalent used by parent company or subsidiaries in the Group | 692,581,199.60 | 432,871,193.08 |
56. Ownership- or use-right-restricted assets
In RMB RMB
| Item | Closing book value | Reason |
| Monetary capital | 692,581,199.60 | Deposit and time deposit |
| Fixed assets | 50,528,321.98 | Credit guarantee |
| Investment real estate | 309,189,866.37 | Credit guarantee |
| 100% stake in Fangda Property Development held by the Company | 200,000,000.00 | Loan by pledge |
| Total | 1,252,299,387.95 | -- |
57. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB RMB
| Item | Closing foreign currency balance | Exchange rate | Closing RMB balance |
| Monetary capital | -- | -- | 35,947,395.48 |
| Including: USD | 620,366.03 | 6.8747 | 4,264,830.35 |
| HK Dollar | 30,378,071.73 | 0.87966 | 26,722,374.58 |
| SGD | 222,026.22 | 5.0805 | 1,128,004.21 |
| AUD | 126,866.42 | 4.8156 | 610,937.93 |
| VND | 10,107,530,370.00 | 0.000294862 | 2,980,323.36 |
| INR | 2,420,027.00 | 0.0995547 | 240,925.06 |
| Account receivable | -- | -- | 55,682,997.22 |
| Including: USD | 6,812,046.22 | 6.8747 | 46,830,774.15 |
| HK Dollar | 2,155,386.72 | 0.87966 | 1,896,007.49 |
| SGD | 69,721.50 | 5.0805 | 354,220.08 |
| AUD | 1,370,960.11 | 4.8156 | 6,601,995.51 |
| Prepayment | 872,234.44 | ||
| Including: USD | 126,876.00 | 6.8747 | 872,234.44 |
| Other receivables | 122,372.69 | ||
| Including: USD | 13,682.31 | 6.8747 | 94,061.78 |
| AUD | 5,879.00 | 4.8156 | 28,310.91 |
| Account payable | 128,070.88 | ||
| Including: AUD | 26,595.00 | 4.8156 | 128,070.88 |
| Account receivable | 19,122,617.36 | ||
| Including: USD | 686,545.42 | 6.8747 | 4,719,793.79 |
| HK Dollar | 16,373,170.97 | 0.87966 | 14,402,823.57 |
| Other payables | 1,284,717.08 | ||
| Including: USD | 16,049.00 | 6.8747 | 110,332.06 |
| HK Dollar | 1,332,637.50 | 0.87966 | 1,172,267.91 |
| VND | 7,180,000.00 | 0.000294862 | 2,117.11 |
Others:
(2) The note of overseas operating entities should include the main operation places, book keepingcurrencies and selection basis. Where the book keeping currency is changed, the reason should also beexplained.
□ Applicable √ Inapplicable
58. Hedging
Hedging items and related tools, qualitative and quantitative information about hedging risks:
Hedging category Hedged item Hedging tool Hedged riskCash flow hedging Aluminum plate futures transaction Aluminum futures contract Rise on raw material prices, causingpurchase cost increase
59. Government subsidy
(1) Government subsidy profiles
In RMB RMB
| Type | Amount | Item | Amount accounted into the current gain/loss |
| Integration sponsorship | 200,000.00 | Other gains | 200,000.00 |
| 2017 special fund enterprise information project fund | 480,000.00 | Deferred earning | |
| 2018 Shenzhen standard allowance | 102,000.00 | Other gains | 102,000.00 |
| Nanshan District independent innovation industry development special fund | 500,000.00 | Other gains | 500,000.00 |
| VAT rebated | 1,359,044.12 | Other gains | 1,359,044.12 |
| Science and Technology Commission innovation coupon | 130,040.00 | Other gains | 130,040.00 |
| Hi-tech enterprise award | 100,000.00 | Other gains | 100,000.00 |
| Enterprise innovation ability cultivation and support subsidy | 508,000.00 | Other gains | 508,000.00 |
| Distributed PV power generation project subsidy sponsored by Dongguan | 500,000.00 | Deferred earning | 12,499.98 |
| Reform and Development Commission | |||
| Luxi county Xuanfeng town government business introduction subsidy | 186,282.50 | Deferred earning | 1,862.82 |
| Self-breathing dual-layer hallow grass energy-saving curtain wall development project | 8,020,000.00 | Deferred earning | 61,993.62 |
| Significant industrial and trade development investment project award | 2,000,000.00 | Deferred earning | 28,571.40 |
| Fixed assets renovation project allowance | 800,000.00 | Deferred earning | |
| R&D subsidy | 696,000.00 | Other gains | 696,000.00 |
| Others | 501,029.66 | Other gains/deferred gains | 301,438.57 |
| Total | 16,082,396.28 | 4,001,450.51 |
(2) Government subsidy refund
□ Applicable √ Inapplicable
Others:
VIII. Change to Consolidation Scope
1. Consolidation of entities not under common control
1. Merger of companies not under the common control during the report period
In RMB RMB
| Purchased party name | When the equity is acquired | Equity acquisition cost | Shareholding ratio | Equity acquisition method | Purchase date | Basis for determining the purchase date | Revenue from the purchaser to the end of the period | Net profit of the purchaser from the date of purchase to the end of the period |
| Shenzhen Zhongrong Litai Investment Co., Ltd. | August 9, 2018 | 61,937,324.17 | 55.00% | Cash | June 12, 2019 | Date of obtaining the actual control right of the acquired | 0.00 | -39,014.15 |
Others:
(2) Combination costs and goodwill
In RMB RMB
partyCombination costs
| Combination costs | |
| --Cash | 61,937,324.17 |
| --Others | -382,436.51 |
| Total combination costs | 61,554,887.66 |
| Less: fair share of identifiable net assets acquired | 61,554,887.66 |
| Goodwill/consolidation cost is less than the amount of fair value of the identifiable net assets acquired | 0.00 |
(3) Identifiable assets and liabilities of the purchased party on the purchase date
In RMB RMB
| Fair value on the day of acquisition | Book value on the day of acquisition | |
| Assets: | 171,756,378.70 | 171,756,378.70 |
| Monetary capital | 2,493.86 | 2,493.86 |
| Receivables | 8,647,214.00 | 8,647,214.00 |
| Inventory | 132,393,495.15 | 132,393,495.15 |
| Prepayment | 28,500,000.01 | 28,500,000.01 |
| Other current assets | 116,504.85 | 116,504.85 |
| Deferred income tax assets | 2,096,670.83 | 2,096,670.83 |
| Liabilities: | 59,838,401.14 | 59,838,401.14 |
| Payable | 59,838,401.14 | 59,838,401.14 |
| Net assets | 111,917,977.56 | 111,917,977.56 |
| Less: minor shareholders’ equity | 50,363,089.90 | 50,363,089.90 |
| Acquired net assets | 61,554,887.66 | 61,554,887.66 |
Method for determining the fair value of identifiable assets and liabilities:
The value approved by the evaluation agency shall prevail.Contingent liabilities of the purchased party assumed in the business combination:
NoneOthers:
None
(4) Gains or losses arising from the re-measurement of equity held before the date of purchase at fair valueDisposal of a subsidiary in multiple steps that lead to loss of control in the report period
□ Yes √ No
(5) Explanation of the merger consideration or the fair value of the identifiable assets and liabilities of theacquiree cannot be reasonably determined at the end of the purchase date or the end of the current period.None
(6) Others
None
2. Change to the consolidation scope for other reasons
Change in the consolidation scope due to other reasons (such as new subsidiaries and liquidation of subsidiaries) and the situations:
1 , During the period, Fangda Southeast Asia Company Limited was newly established, and the merger of enterprises under the samecontrol increased Shenzhen Zhongrong Litai Investment Co., Ltd., adding 2 subsidiaries in the current consolidated statement.In this period, Shenzhen Kexunda Software Co., Ltd., an indirect controlled subsidiary, was canceled, so the current consolidatedstatement reduced one subsidiary.IX. Equity in Other Entities
1. Interests in subsidiaries
(1) Group Composition
| Company | Place of business | Registered address | Business | Shareholding percentage | Obtaining method | |
| Direct | Indirect | |||||
| Fangda Jianke | Shenzhen | Shenzhen | Designing, manufacturing, and installation of curtain walls | 98.39% | 1.61% | Incorporation |
| Fangda Zhichuang | Shenzhen | Shenzhen | Production, processing and installation of subway screen doors | 14.00% | 86.00% | Incorporation |
| Fangda New Material | Nanchang | Nanchang | Prodution and sales of new-type materialsm composite | 75.00% | 25.00% | Incorporation |
| materials and production of curtain walls | ||||||
| Kexunda | Shenzhen | Shenzhen | Computer software development | 100.00% | Incorporation | |
| Fangda Property | Shenzhen | Shenzhen | Real estate development and operation | 100.00% | Incorporation | |
| Fangda New Energy | Shenzhen | Shenzhen | Design and construction of PV power plants | 100.00% | Incorporation | |
| Chengdu Fangda Jianke | Chengdu | Chengdu | Trusted processing of building curtain wall materials | 100.00% | Incorporation | |
| Shihui International | Virgin Islands | Virgin Islands | Investment | 100.00% | Incorporation | |
| Dongguan Fangda New Material | Dongguan | Dongguan | Production and sales of building curtain walls | 100.00% | Incorporation | |
| Fangda Property Management | Shenzhen | Shenzhen | Property management | 100.00% | Incorporation | |
| Jiangxi Property | Nanchang | Nanchang | Real estate development and operation | 100.00% | Incorporation | |
| Pingxiang Fangda Luxin New Energy Co., Ltd. | Pingxiang | Pingxiang | Design and construction of PV power plants | 100.00% | Incorporation | |
| Pingxiang Xiangdong Fangda New Energy Co., Ltd. | Pingxiang | Pingxiang | Design and construction of PV power plants | 100.00% | Incorporation | |
| Nanchang Xinjian Fangda New Energy Co., Ltd. | Nanchang | Nanchang | Design and construction of PV power plants | 100.00% | Incorporation | |
| Dongguan Fangda New Energy Co., Ltd. | Dongguan | Dongguan | Design and construction of PV power plants | 100.00% | Incorporation | |
| Kechuangyuan | Shenzhen | Shenzhen | Software | 100.00% | Incorporation |
| Software | development | |||||
| Zhichuang Hong Kong | Hong Kong | Hong Kong | Metro screen door | 100.00% | Incorporation | |
| Hongjun Investment Company | Shenzhen | Shenzhen | Investment | 98.00% | 2.00% | Incorporation |
| Jianke Australia | Australia | Australia | Designing, manufacturing, and installation of curtain walls | 100.00% | Incorporation | |
| Fangda Cloud Rail | Shenzhen | Shenzhen | Design, development and sales of cloud rail transport equipment | 100.00% | Incorporation | |
| Fangda Qingling | Shanghai | Shanghai | Production and sales of building curtain walls | 100.00% | Incorporation | |
| Zhongrong Litai | Shenzhen | Shenzhen | Real estate development and operation | 55.00% | Purchase | |
| Fangda Southeast Asia | Vietnam | Vietnam | Designing, manufacturing, and installation of curtain walls | 100.00% | Incorporation |
2. Interests in joint ventures or associates
(1) Financial summary of insignificant joint ventures and associates
In RMB RMB
| Closing balance/amount occurred in this period | Opening balance/amount occurred in previous period | |
| Joint venture: | -- | -- |
| Total shareholding | -- | -- |
| Associate: | -- | -- |
| Total book value of investment | 69,779,924.33 | 70,105,657.88 |
| Total shareholding | -- | -- |
| Net profit | -325,733.55 | -836,397.74 |
| --Total of misc. incomes | -325,733.55 | -836,397.74 |
X. Risks of Financial ToolsMajor financial tools of the Group include monetary fund, accounts receivable, receivable bills, other receivables, other current assets,financial assets measured at fair value and whose change recorded in the profit and loss of this period, accounts payable, interestpayable, payable bills, other payables, short-term borrowings, other current liabilities, non-current liabilities due within one year andlong-term borrowings. Details about the Group's financial instruments are disclosed in related notes. The following explains risksrelated to the financial instruments and risk management policies adopted by the Group to lower the risks. The management of theGroup manages and monitor the risks to ensure that the risks are within the acceptable range.
1. Risk management target and policy
The target of the risk management is to balance between risk and benefit and lower financial risks’ impacts on the Group’s financialperformance. Based on the target, the Group has formulated risk management policy to identify and analyze risks facing the Groupand set an appropriate acceptable level and internal control procedures to monitor the risks. The Group regularly reviews the riskmanagement policies and related internal control system to suit the market status and changes in the Group’s operating activities. Theinternal auditing department of the Group will regularly or randomly check the implementation of the internal control system.Risks caused by the Group’s financial instruments are credit risk, liquidity risk and market risk (including interest, exchange rate andproduct price/equity tool price risks).
(1) Credit risks
Credit risk is caused by the failure of one party of a financial instrument in performing its obligations, causing the risk of financialloss for the other party.The Group manages credit risks through classification. The credit risk is mainly caused by bank deposit and receivables.The Group’s bank deposit is mainly deposited in state-owned banks and large-sized listed banks. The credit risk caused by bankdeposited is minor.For receivables, the Group sets up related policies to control the credit risk. The Group set the credit line and term for debtorsaccording to their financial status, external rating, and possibility of getting third-party guarantee, credit record and other factors. TheGroup has adopted a policy of cooperating only with creditworthy counterparties and obtaining sufficient collateral when necessaryto mitigate the risk of financial losses arising from the failure of the counterparty to perform its contractual obligations. The Groupregularly monitors debtors’ credit record. For those with poor credit record, the Group will send written payment reminders, shortenor cancel credit term to lower the general credit risk.The debtors of the Group's accounts receivable are customers distributed in different industries and regions. The Group continues toperform credit assessments on the financial status of the receivables and when appropriate purchases credit guarantee insurance.The largest credit risk facing the Group is the book value of each financial asset on the balance sheet. The Group makes no guaranteethat may cause the Group credit risks.Among the Group’s receivables, accounts receivable from top 5 customers account for 17.39% of the total accounts receivable (2018:
18.60%); among other receivables, other receivables from top 5 customers account for 64.65% of the total other receivables (2018:
66.83%).
(2) Liquidity risk
Liquidity risk is the risk of capital shortage when the Group needs to pay cash or settled with other financial assets.The Group keeps adequate cash and cash equivalent, and monitors the level to ensure that the cash and cash equivalent can meet theoperation needs. The management of the Group monitors the use of bank loans and ensures that they are used as agreed. The Groupalso obtains guarantee from financial institutions for adequate standby fund to meet short-term and long-term capital demand.The Group can also use fund generated by operating activities and bank and other loans. As of June 30, 2019, the Group's unusedbank borrowings amounted to RMB200,102,800 (December 31, 2018: RMB264,974,000).Financial liabilities and excluded guarantees held by the Group by undiscounted residual contract cash flow (in RMB10,000) at theend of the period:
| Closing amount | ||||
| Item | Less than 1 year | Within 1-3 years | Over 3 years | Total |
| Financial liabilities: | ||||
| Short-term loans | 90,000.00 | 0.00 | 0.00 | 90,000.00 |
| Payable notes and accounts | 139,661.83 | 8,436.82 | 586.92 | 148,685.57 |
| Employees' wage payable | 2,392.54 | 0.00 | 0.00 | 2,392.54 |
| Other payables | 30,791.61 | 52,312.56 | 530.86 | 83,635.03 |
| Non-current liabilities due in 1 year | 80,000.00 | 0.00 | 0.00 | 80,000.00 |
| Other current liabilities | 1,002.36 | 0.00 | 0.00 | 1,002.36 |
| Long-term loans | 0.00 | 59,397.82 | 0.00 | 59,397.82 |
| Total liabilities | 343,848.35 | 120,147.20 | 1,117.78 | 465,113.32 |
Financial liabilities and excluded guarantees held by the Group by undiscounted residual contract cash flow (in RMB10,000) at theend of the period:
| Opening amount | ||||
| Item | Less than 1 year | Within 1-3 years | Over 3 years | Total |
| Financial liabilities: | ||||
| Short-term loans | 20,800.00 | 20,800.00 | ||
| Payable notes and accounts | 139,987.76 | 14,588.41 | 173.36 | 154,749.53 |
| Employees' wage payable | 4,451.31 | 4,451.31 | ||
| Other payables | 25,200.85 | 55,107.77 | 1,003.25 | 81,311.87 |
| Non-current liabilities due in 1 year | 20,000.00 | 20,000.00 | ||
| Other current liabilities | 932.87 | 932.87 |
| Long-term loans | 119,397.82 | 119,397.82 | ||
| Total liabilities | 211,372.79 | 189,094.00 | 1,176.61 | 401,643.40 |
The amount of financial liabilities disclosed in the above table is undiscounted contractual cash flow and may therefore differ fromthe carrying amount in the balance sheet.
(3) Market risks
Market risk of financial instrument is caused by changes in the fair value of financial instruments or future cash flow, includinginterest risk, exchange rate and other price risks.Exchange rate riskInterest rate risk is caused by fluctuation of the fair value or future cash flow of financial instruments caused by changes in themarket interest rate. The interest rate risk can be caused by recognized interest-bearing financial instruments and unrecognizedfinancial instruments.The Group's interest rate risk mainly arises from long-term interest-bearing debts such as long-term bank loans. Financial liabilitieswith floating interest rate cause cash flow interest rate risk for the Group. Financial liabilities with fixed interest rate cause fair valueinterest rate risk for the Group. The Group decides the proportion between fixed interest rate and floating interest rate according tothe market environment and regularly reviews and monitors the combination of fixed and floating interest rate instruments.The Group pays close attention to the risks of changing interest rates. The Group adopts no hedging policies currently. Howevermanagement is responsible for monitoring interest rate risk and will consider hedging significant interest rate risk should the needarise. As fixed deposits are short-term borrowing, the interest rate risk of the fair value of bank deposit is minor.There is no floating rate borrowing in this period. If the benchmark interest rate rises or falls by 50 basis points, while other factorsremain unchanged, the Group's net profit and shareholders' equity will remain unchanged. (December 31, 2018: RMB90,800)For the financial instruments held on the balance sheet date that expose the Group to fair value interest rate risk, the impact of the netprofit and shareholders' equity in the above sensitivity analysis is measured based on the assumption that the interest rate changes onthe balance sheet date according to the new interest rate. For floating interest rate non-derivatives held on the balance sheet date thatexpose the Group to cash flow interest rate risk, the effect of net profit and shareholder equity in the above sensitivity analysis is theinterest income or income estimated by the above interest rate changes. The previous year's analysis was based on the sameassumptions and methods.Exchange rate riskExchange rate risk is caused by fluctuation of the fair value or future cash flow of financial instruments caused by changes in theforeign exchange rates. The exchange rate risk can be caused by financial instruments priced in foreign currencies.Exchange rate risk is mainly attributable to the Group's financial position and cash flows affected by fluctuations in foreign exchangerates. Except for the subsidiaries established in Hong Kong holding assets in Hong Kong dollars as the settlement currency, there isonly a small amount of investment in the Hong Kong market. The proportion of assets and liabilities held by the Group in foreigncurrency assets and liabilities is not significant. Therefore the Group believes that the exchange rate risk is not significant.The Group pays close attention to the risks of changing exchange rate. The Group takes no measure to prevent other exchange riskscurrently. However management is responsible for monitoring exchange rate risk and will consider hedging significant exchange raterisk should the need arise.See Note V. 57 Foreign Currency Item Note for the Group’s financial assets and liabilities priced in foreign currencies.Other price risksOther price risks refer to risks of fluctuations caused by changes to market prices, regardless of whether the changes are caused byfactors related to a single financial tool or issuer, or factors related to all similar financial tools traded in the market. Other price riskscome from changes in product prices or equity tool prices.The Group's investment in financial assets classified as fair value through changes in fair value through profit or loss, and investmentproperties measured in fair value are measured at fair value on the balance sheet date. Therefore, the Group bears risks of changes inthe securities market and real estate market prices.The Group closely follows impacts of price changes to the Company’s securities investment price and real estate price risks. TheGroup takes no measure to prevent other price risks currently. The management is responsible for monitoring the other price risks.
2. Capital management
The Group’s capital management aims to ensure continuous operation of the Group, provide returns for shareholders, help otherinterested parties make benefit, and maintain the best capital structure and lower capital cost.The Group may adjust the dividend distributed to shareholders, issue new shares or sell assets to maintain or adjust the capitalstructure.The Group monitors the capital structure based on the assets/liability ratio. As of June 30, 2019, the Group's asset-liability ratio was
53.62% (December 31, 2018: 51.26%).
XI. Fair Value
1. Closing fair value of assets and liabilities measured at fair value
In RMB RMB
| Item | Closing fair value | |||
| First level fair value | Second level fair value | Third level fair value | Total | |
| 1. Continuous fair value measurement | -- | -- | -- | -- |
| (1) Transactional financial assets | 17,375.00 | 17,375.00 | ||
| 1. Financial assets measured at fair value with variations accounted into current income account | 17,375.00 | 17,375.00 | ||
| 3. Derivative financial assets | 17,375.00 | 17,375.00 | ||
| (3) Investment in other equity tools | 21,674,008.23 | 21,674,008.23 | ||
| (4) Investment real estate | 5,260,188,084.93 | 5,260,188,084.93 | ||
| 2. Leased building | 5,260,188,084.93 | 5,260,188,084.93 | ||
| Total assets measured at fair value continuously | 17,375.00 | 5,260,188,084.93 | 21,674,008.23 | 5,281,879,468.16 |
| 2. Discontinuous fair value measurement | -- | -- | -- | -- |
2. Recognition basis of market value of continuous and discontinuous items measured at first level fairvalueThe Group determines the fair value using quotation in an active market for financial instruments traded in an active market;
3. Valuation technique and qualitative and quantitative information for key parameters of continuous anddiscontinuous second level fair value itemsFor investment in real estate similar with real estate transaction, the Group uses valuation techniques to determine its fair value. Thetechnique is comparison and earning method. Inputs include transaction date, status, region and other factors.
4. Valuation technique and qualitative and quantitative information for key parameters of continuous anddiscontinuous third level fair value itemsFor other equity instrument investments, for non-trading equity instrument investments, unmatched transactions are available forreference. The Group uses valuation techniques to determine its fair value. The valuation technique used is based on the valuationvalue of the relevant assets provided by the assessment agency and is calculated and confirmed based on its own data.
5. Switch between different levels, switch reason and switching time policy
In the period, there is no switch in the financial assets measured at fair value between the first and second level. The additionalinvestment in other equity instruments measured at the third level is a non-trading equity instrument investment. According to thenew financial instrument standard, it is designated as fair value from January 1, 2019 and its changes are included in othercomprehensive income.
6. Fair value of financial assets and liabilities not measured at fair value
Financial assets and liabilities measured at amortized cost include: monetary capital, bills receivable, accounts receivable, otherreceivables, short-term borrowings, notes payable, accounts payables, other payables, and long-term payables.The difference between book value and fair value of financial assets and liabilities not measured at fair value is small.
XII. Related Parties and Transactions
1. Parent of the Company
| Parent | Registered address | Business | Registered capital | Share of the parent co. in the Company | Voting power of the parent company |
| Shenzhen Banglin Technologies Development Co., Ltd. | Shenzhen | Industrial investment | 30,000,000.00 | 10.08% | 10.08% |
Particulars about the parent of the CompanyAll of the investors of Shenzhen Banglin Technology Development Co., Ltd., the holding shareholder of the Company, are naturalpersons. Among them, Chairman Xiong Jianming is holding 85％ shares, and Mr. Xiong Xi – son of Mr. Xiong Jianming, is holding
15% of the shares.
The final controller of the Company is Xiong Jianming.Other Note:
As of June 30, 2019, Mr. Xiong Jianming directly held 0.17% of the company's shares and 10.08% and 8.52% of the shares indirectlythrough Shenzhen Banglin Technology and Shengjiu Investment, totally 18.77%. Mr. Xiong Jianming is the actual controller of theCompany.
2. Subsidiaries of the Company
See Note IX. 1.
3. Joint ventures and associates
See Note IX. 2 for details of significant joint ventures and associates of the Company.Information about other joint ventures or associates with related transactions in this period or with balance generated by relatedtransactions in previous period:
| Joint venture or associate | Relationship with the Company |
| Shenzhen Ganshang Joint Investment Co., Ltd. | Associate |
| Shenzhen Huihai Yirong Internet Service Co., Ltd. | Associate |
| Jiangxi Business Innovative Property Joint Stock Co., Ltd. | Associate |
4. Other associates
| Other related parties | Relationship with the Company |
| Shenzhen Qijian Technology Co., Ltd. (Qijian Technology) | Common actual controller |
| Gong Qing Cheng Shi Li He Investment Management Partnership Enterprise (limited partner) | Executive partners are the Company's senior management personnel |
| Shenyang Fangda Semi-conductor Lighting Co., Ltd. (hereinafter Shenyang Fangda) | Subsidiary in liquidation |
| Shenzhen Woke Semi-conductor Lighting Co., Ltd. (hereinafter Shenzhen Woke) | Subsidiary in liquidation |
5. Related transactions
(1) Related transactions for purchase and sale of goods, provision and acceptance of servicesSales of goods and services
In RMB RMB
| Affiliated party | Related transaction | Amount occurred in the | Occurred in previous period |
| current period | |||
| Shenzhen Qijian Technology Co., Ltd. | Property service and sales of goods | 22,610.18 | 15,209.97 |
| Shenzhen Ganshang Joint Investment Co., Ltd. | Property service and sales of goods | 5,060.89 | 5,060.89 |
Notes about related transactions for purchase and sale of goods, provision and acceptance of services
(2) Related leasing
The Company is the leasor:
In RMB RMB
| Name of the leasee | Category of asset for lease | Rental recognized in the period | Rental recognized in the period |
| Shenzhen Ganshang Joint Investment Co., Ltd. | Houses & buildings | 66,475.80 | 65,040.67 |
| Shenzhen Qijian Technology Co., Ltd. | Houses & buildings | 207,366.00 | 134,808.00 |
(3) Related guarantees
The Company is the guarantor:
In RMB RMB
| Beneficiary party | Amount guaranteed | Start date | Due date | Completed or not |
| Fangda Jianke | 300,000,000.00 | August 18, 2018 | July 31, 2020 | No |
| Fangda Jianke | 100,000,000.00 | June 21, 2019 | June 20, 2020 | No |
| Fangda Jianke | 400,000,000.00 | March 26, 2019 | March 26, 2020 | No |
| Fangda Jianke | 400,000,000.00 | April 17, 2019 | April 16, 2020 | No |
| Fangda Zhichuang | 216,000,000.00 | August 6, 2018 | July 12, 2020 | No |
| Fangda Zhichuang | 120,000,000.00 | March 26, 2019 | March 26, 2020 | No |
| Fangda Zhichuang | 150,000,000.00 | May 27, 2019 | May 26, 2020 | No |
| Fangda New Material | 65,000,000.00 | June 26, 2019 | June 25, 2020 | No |
| Fangda New Material | 80,000,000.00 | April 24, 2019 | April 23, 2020 | No |
| Fangda Property | 1,300,000,000.00 | February 3, 2015 | February 2, 2023 | No |
The Company is the guarantied party:
In RMB RMB
| Gurantor | Amount guaranteed | Start date | Due date | Completed or not |
| Fangda Jianke | 600,000,000.00 | March 26, 2019 | March 26, 2020 | No |
| Fangda Jianke | 250,000,000.00 | September 29, 2018 | September 29, 2019 | No |
Note to related guarantees
1. The above-mentioned guarantees are all associated guarantees within interested entities of the Group.
2. HSBC has a total credit of RMB 90 million to the Company, Fangda Jianke and Fangda Zhichuang and has not yet agreed on thecredit expiration date. HSBC regularly evaluates the credit status. The restriction on the use of the credit is as follows:
The company can use non-financial bank guarantees of up to 90 million yuan to grant credit.Fangda Jianke has non-committed combined revolving credits of not more than RMB90 million including revolving loans of upto RMB90 million, non-financial bank guarantees of up to RMB90 million and bank acceptances of up to RMB90 million.Fangda Jianke has non-committed combined revolving credits of not more than RMB90 million including revolving loans of upto RMB90 million, non-financial bank guarantees of up to RMB90 million and bank acceptances of up to RMB90 million.
(4) Remuneration of key management
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Wage, remuneration and subsidy | 4,251,796.50 | 3,899,726.00 |
6. Receivable and payables due with related parties
(1) Receivable interest
In RMB RMB
| Project | Affiliated party | Closing balance | Opening balance | ||
| Remaining book value | Bad debt provision | Remaining book value | Bad debt provision | ||
| Account receivable | Qijian Technology | 984.45 | 9.84 | 957.79 | 28.73 |
| Other receivables | Shenyang Fangda | 42,877.00 | 42,877.00 | 42,877.00 | 42,877.00 |
| Other receivables | Shenzhen Woke | 865,802.94 | 865,802.94 | 865,802.94 | 865,802.94 |
| Other receivables | Zhongrong Litai | 0.00 | 0.00 | 8,580,127.08 | 257,403.81 |
XIII. Contingent events
1. Major commitments
Major commitments that exist on the balance sheet dayOn November 6, 2017, Fangda Real Estate Co., Ltd., a subsidiary of the Company, and Bangshen Electronics (Shenzhen) Co., Ltd.signed the ―Joint Development Agreement on Fangda Bangshen Industrial Park (Temporary Name) Urban Renewal Project‖, and thetwo parties agreed to develop cooperatively. In order to develop urban renewing projects such as a ―renovation project‖, Fangda RealEstate provided Party A with property compensation through renovating and renovating the property allocation terms agreed upon byboth parties, and obtained independent development rights of the project. As of June 30, 2019, Fangda Real Estate Co., Ltd. had paida security deposit of RMB 20 million.
(2) In July 2018 ,the company's subsidiary Fangda Real Estate Co. Ltd. (Party A) signed a contract with Shenzhen Yikang Real EstateCo. Ltd. (Party B1) and Shenzhen Qianhai Zhongzheng Dingfeng No. 6 Investment Enterprise (Limited Partnership) (Party B2),
"Shenzhen Henggang Dakang Village Project Cooperation Agreement". Party B agrees to transfer the entire equity of the projectcompany it holds and the entire development interest of the project to Party A. Party A shall pay Party B a total of RMB600 millionfor the cooperation price. As of June 30, 2019, Fangda Real Estate had paid a guarantee deposit of RMB50 million to Party B, paid aservice fee of RMB20 million, and paid a transfer of RMB61,937,300.
(3) The sales contract of Fangda Plaza developed by Fangda Real Estate Co. Ltd., a subsidiary of the Company, stipulates that if thebuyer cannot obtain the "Property Certificate" according to the agreed time limit calculated from the date of the delivery of the housedue to the seller's reasons, the seller shall bear the liability for breach of contract as of 2018. The number of sets that have not beenissued for delivery on June 30, 2019 is 459 sets.As of June 30, 2019, the Group did not have other commitments that should be disclosed.
2. Contingencies
(1) Significant contingencies on the balance sheet date
① Contingent liabilities formed by material lawsuit or arbitration, and their influences on the financial positionIn June 2015, Fangda Jianke filed a lawsuit against Wang Weihong, requiring an indemnity of RMB23 million and defreezing of theamount RMB23 million by the bank. On June 21 2018, the First Intermediate People's Court of Chongqing Municipality made thefirst-instance judgment and (2008) Juyi Zhongfa Minzi No. 01205 civil judgment verdict Wang Weihong paid to Fangda JiankeCompany within 10 days from the effective date of the judgment. The material amount of RMB 6,611,425.54 the paid projectdepartment and construction team salary is 1,292,336.08 yuan the tax paid is 227,909.13 yuan the deduction of his case is executedthe execution amount is 1,150,000.00 yuan and the overdue interest is 4,688,191.35 yuan totaling 13,969,862.10 yuan. Fangda JiankeCompany refused to accept the compensation amount for the first-instance judgment and filed an appeal. At the same time, WangWeihong also filed an appeal. As of the date of this report, the second instance has been decided. Fangda Jianke applied forenforcement and has recovered RMB 13,286,430.88.On November 27, 2018, Fangda Jianke, a subsidiary of the Group, filed a lawsuit against Quanzhou Hengan Generation VentureCapital Co., Ltd. for Quanzhou Hengan Generation Venture Capital Co., Ltd. for the payment of RMB10,394,232.91 and overdueinterest payment of RMB1,911,122.36, totaling RMB12,305,355.27. On January 21, 2019, the case was officially filed. As of the dateof this report, the two sides have reached a settlement; in July 2019, the settlement amount of 6 million yuan has been recovered andis currently being closed.In November 2018， Fangda Jianke a subsidiary of the Group sued Fujian Huapu Real Estate Development Co. Ltd. for a payment ofRMB 13810243.67 and its overdue interest of RMB 3044545.82 totaling RMB 16854789.49 to the Taijiang District People's Court ofFuzhou City. The case has not been decided.
② Pending lawsuits
On September 6, 2017, Chenghua District People's Court of Chengdu Municipality sentenced Sichuan Chuta Hengyuan IndustrialCo., Ltd. to pay construction money to Fangda Jianke within 10 days from the date of the verdict 川0108民初1828号RMB10,242,182.99. As of the date of this report, Fangda Jianke has applied for execution and has not received the relevant payment.On September 10, 2018, the People's Court of Lixia District of Jinan City sentenced Shandong Zhonghong Real Estate Co. Ltd. to the
Company for payment of RMB5960429.45 within 10 days from the date of the effective date of the (2018) Lu 0102 Minchu 5367civil judgment. As of the date of this report, the company has applied for enforcement and received an execution fee ofRMB62,315.10. Since no other property is available for execution, the court has terminated the execution and will resume theapplication if other property is found later.
(3) Contingent liabilities formed by providing of guarantee to other companies' debts and their influences on financial situationAs of June 30, 2019, the Company provided guarantees for the following unit loans:
| Name of guaranteed entity | Guarantee | Amount (in RMB10,000) | Start date | End date |
| Fangda Property | Pledge guarantee | 39.56 | 2015-12-28 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 4241.27 | 2016-1-26 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 4,260.74 | 2016-1-29 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 343.47 | 2016-3-28 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 3,615.06 | 2016-4-27 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 1,157.69 | 2016-5-22 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 414.66 | 2016-5-30 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 3,113.99 | 2016-6-13 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 1,465.99 | 2016-6-24 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 4415.64 | 2016-7-26 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 4,813.23 | 2016-8-15 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 5,519.40 | 2016-9-7 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 15,048.01 | 2016-10-8 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 7,628.15 | 2016-11-7 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 6,140.11 | 2016-11-30 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 9,889.21 | 2017-1-19 | 2023-2-11 |
| Fangda Property | Pledge | 1,830.24 | 2017-5-31 | 2023-2-11 |
| guarantee | ||||
| Fangda Property | Pledge guarantee | 2,581.45 | 2017-6-28 | 2023-2-11 |
| Fangda Property | Pledge guarantee | 2,879.95 | 2017-8-30 | 2023-2-11 |
| Total | 79,397.82 |
④ Providing guarantee for property purchasers
The Group’s property business provides periodic mortgage guarantee for property purchasers. The term of the periodic guaranteelasts from the effectiveness of guarantee contracts to the completion of mortgage registration and transfer of housing ownershipcertificates to banks. As of June 30, 2019, the Company assumed the above-mentioned phased guarantee amount of RMB 846million.As of June 30, 2019, the Group did not have other commitments that should be disclosed.
(2) Significant contingent events that do not need to be disclosed should be explainedNo such significant contingent event(XIV) Other material events
1. Suspension of operations
In RMB RMB
| Item | Income | Expense | Total profit | Income tax expenses | Net profit | Suspended operation profit attributable to the owners of parent company |
| Suspension of operations | 0.00 | -339.85 | -6,517.75 | -6,517.75 | -6,517.75 |
Other note
(1) Kexunda completed the industrial and commercial cancellation in January 2019.
(2) The net profit of termination of operations in 2019 includes: Ke Xunda's net profit for the period is RMB -6,517.75.
2. Segment information
(1) Recognition basis and accounting policy for segment report
The Group divides its businesses into five reporting segments. The reporting segments are determined based on financial informationrequired by routine internal management. The Group’s management regularly review the operating results of the reporting segmentsto determine resource distribution and evaluate their performance.
The reporting segments are:
① Curtain wall segment: R&D, design, production, construction and sales of building curtain wall and materials;
② Rail Transit segment: R&D, design, production, construction and sales of subway screen doors;
③ Real estate segment: development and operating of real estate on land of which land use right is legally obtained by the Company;property management;
④ New energy segment: R&D, design, production, construction, operation and sales of photovoltaic power plants and photovoltaicbuilding integration (BIPV).
(5) Others
The segment report information is disclosed based on the accounting policies and measurement standards used by the segments whenreporting to the management. The policies and standards should be consistent with those used in preparing the financial statement.
(2) Financial information
In RMB RMB
| Item | Curtain wall | Rail transport | Real estate | New energy | Others | Offset between segments | Total |
| Turnover | 1,006,855,257.95 | 197,936,254.56 | 206,299,986.06 | 7,798,771.34 | 17,158,094.00 | 10,157,416.91 | 1,425,890,946.99 |
| Including: external transaction income | 1,005,451,498.66 | 197,936,254.56 | 204,754,339.12 | 7,546,757.83 | 10,202,096.83 | 1,425,890,946.99 | |
| Including: major business turnover | 995,621,587.45 | 196,536,683.63 | 186,500,042.57 | 7,798,771.34 | 0.00 | 1,797,660.45 | 1,384,659,424.54 |
| Operation cost | 859,418,207.71 | 143,919,488.13 | 63,231,815.43 | 3,729,417.42 | 3,496,588.06 | 7,729,546.19 | 1,066,065,970.56 |
| Including: external transaction cost | 859,166,194.20 | 142,515,728.84 | 57,493,641.50 | 3,729,417.42 | 3,160,988.59 | 1,066,065,970.56 | |
| Including: major business cost | 854,411,800.49 | 143,678,672.73 | 61,355,281.06 | 3,729,417.42 | 0.00 | 7,393,946.71 | 1,055,781,224.98 |
| Total assets | 3,433,406,092.35 | 571,914,096.26 | 6,900,853,490.01 | 176,422,676.02 | 3,200,752,186.15 | 3,342,545,760.34 | 10,940,802,780.45 |
| Total liabilities | 2,325,505,651.68 | 319,505,664.36 | 3,449,398,034.28 | 96,894,880.85 | 1,759,776,694.65 | 2,084,411,801.66 | 5,866,669,124.16 |
(XV) Notes to Financial Statements of the Parent
1. Account receivable
(1) Account receivable disclosed by categories
In RMB RMB
| Type | Closing balance | Opening balance | ||||||||
| Remaining book value | Bad debt provision | Book value | Remaining book value | Bad debt provision | Book value | |||||
| Amount | Proportion | Amount | Provision rate | Amount | Proportion | Amount | Provision rate | |||
| Account receivable for which bad debt provision is made by group | 14,747.06 | 100.00% | 181.39 | 1.23% | 14,565.67 | 485,607.34 | 100.00% | 14,568.22 | 3.00% | 471,039.12 |
| Including: | ||||||||||
| Account age | 14,747.06 | 100.00% | 181.39 | 1.23% | 14,565.67 | 485,607.34 | 100.00% | 14,568.22 | 3.00% | 471,039.12 |
| Total | 14,747.06 | 100.00% | 181.39 | 1.23% | 14,565.67 | 485,607.34 | 100.00% | 14,568.22 | 3.00% | 471,039.12 |
Provision for bad debts by combination:
In RMB RMB
| Name | Closing balance | ||
| Remaining book value | Bad debt provision | Provision rate | |
| Account age | 14,747.06 | 181.39 | 1.23% |
| Less than 1 year | 14,747.06 | 181.39 | 1.23% |
| Total | 14,747.06 | 181.39 | -- |
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, pleaserefer to the disclosure of other receivables to disclose information about bad debts:
□ Applicable √ Inapplicable
Account age
In RMB RMB
| Age | Closing balance |
| Within 1 year (inclusive) | 14,747.06 |
| Less than 1 year | 14,747.06 |
| Total | 14,747.06 |
(2) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB RMB
| Type | Opening balance | Change in the period | Closing balance | ||
| Provision | Written-back or recovered | Canceled | |||
| Account age | 14,568.22 | 181.39 | 14,568.22 | 181.39 | |
| Total | 14,568.22 | 181.39 | 14,568.22 | 181.39 | |
(3) Balance of top 5 accounts receivable at the end of the period
The total balance of top-five accounts receivable at the end of the period is RMB432,760,086.90, accounting for 100.00% of the totalremaining balance of all accounts receivable. The bad debt provision made at the end of the period is RMB24,198,556.99.
2. Other receivables
In RMB RMB
| Item | Closing balance | Opening balance |
| Dividend receivable | 100,000,000.00 | 100,000,000.00 |
| Other receivables | 1,220,828,678.84 | 722,543,653.04 |
| Total | 1,320,828,678.84 | 822,543,653.04 |
(1) Receivable dividend
1) Receivable dividend
In RMB RMB
| Item (or invested entity) | Closing balance | Opening balance |
| Shenzhen Fangda Property Development Co., Ltd. | 100,000,000.00 | 100,000,000.00 |
| Total | 100,000,000.00 | 100,000,000.00 |
2) Method of bad debt provision
□ Applicable √ Inapplicable
(2) Other receivables
1) Other receivables are disclosed by nature
In RMB RMB
| By nature | Closing balance of book value | Opening balance of book value |
| Construction borrowing and advanced payment | 136,403.35 | 165,316.85 |
| Staff borrowing and petty cash | 152,722.64 | 52,722.64 |
| Luo Huichi | 13,030,000.00 | 13,030,000.00 |
| Others | 908,679.94 | 908,679.94 |
| Associate accounts | 1,220,543,860.83 | 722,429,833.29 |
| Total | 1,234,771,666.76 | 736,586,552.72 |
2) Method of bad debt provision
In RMB RMB
| Bad debt provision | First stage | Second stage | Third stage | Total |
| Expected credit losses in the next 12 months | Expected credit loss for the entire duration (no credit impairment) | Expected credit loss for the entire duration (credit impairment has occurred) | ||
| Balance on January 1, 2019 | 3,248.79 | 13,938,679.94 | 13,941,928.73 | |
| Balance on January 1, 2019 in the current period | —— | —— | —— | —— |
| Provision | 1,059.19 | 1,059.19 | ||
| Balance on June 30, 2019 | 4,307.98 | - | 13,938,679.94 | 13,942,987.92 |
Changes in book balances with significant changes in the current period
□ Applicable √ Inapplicable
Account age
In RMB RMB
| Age | Closing balance |
| Within 1 year (inclusive) | 1,220,762,287.28 |
| Less than 1 year | 1,220,762,287.28 |
| Over 3 years | 14,009,379.48 |
| Over 5 years | 14,009,379.48 |
| Total | 1,234,771,666.76 |
3) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB RMB
| Type | Opening balance | Change in the period | Closing balance | |
| Provision | Written-back or recovered | |||
| Other receivables and bad debt provision | 13,941,928.73 | 1,059.19 | 13,942,987.92 | |
| Total | 13,941,928.73 | 1,059.19 | 13,942,987.92 | |
4) Balance of top 5 other receivables at the end of the period
In RMB RMB
| Entity | By nature | Closing balance | Age | Percentage (%) | Balance of bad debt provision at the end of the period |
| Fangda Jianke | Associate accounts | 723,727,258.00 | Less than 1 year | 58.61% | 0.00 |
| Fangda Property | Associate accounts | 199,164,356.46 | Less than 1 year | 16.13% | 0.00 |
| Jiangxi Property | Associate accounts | 157,378,198.75 | Less than 1 year | 12.75% | 0.00 |
| Fangda New Resource | Associate accounts | 90,734,377.09 | Less than 1 year | 7.35% | 0.00 |
| Shihui International | Associate accounts | 30,459,793.09 | Less than 1 year | 2.47% | 0.00 |
| Total | -- | 1,201,463,983.39 | -- | 97.30% |
3. Long-term share equity investment
In RMB RMB
| Item | Closing balance | Opening balance | ||||
| Remaining book value | Impairment provision | Book value | Remaining book value | Impairment provision | Book value | |
| Investment in subsidiaries | 1,013,339,495.35 | 1,013,339,495.35 | 983,339,494.35 | 983,339,494.35 | ||
| Total | 1,013,339,495.35 | 1,013,339,495.35 | 983,339,494.35 | 983,339,494.35 | ||
(1) Investment in subsidiaries
In RMB RMB
| Invested entity | Opening balance | Increase | Decrease | Closing balance | Provision made in this period | Balance of impairment provision at the end of the period |
| Fangda Jianke | 491,950,000.00 | 491,950,000.00 |
| Qingling Technology | 30,000,001.00 | 30,000,001.00 | ||||
| Fangda Zhichuang | 18,831,241.35 | 18,831,241.35 | ||||
| Fangda New Material | 74,496,600.00 | 74,496,600.00 | ||||
| Fangda Property | 200,000,000.00 | 200,000,000.00 | ||||
| Shihui International | 61,653.00 | 61,653.00 | ||||
| Hongjun Investment Company | 98,000,000.00 | 98,000,000.00 | ||||
| Fangda New Energy | 100,000,000.00 | 100,000,000.00 | ||||
| Total | 983,339,494.35 | 30,000,001.00 | 1,013,339,495.35 |
4. Operational revenue and costs
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period | ||
| Income | Cost | Income | Cost | |
| Other businesses | 17,142,022.88 | 3,496,588.06 | 15,112,290.20 | 673,578.25 |
| Total | 17,142,022.88 | 3,496,588.06 | 15,112,290.20 | 673,578.25 |
Whether the new revenue guidelines are implemented
□ Yes √ No
5. Investment income
In RMB RMB
| Item | Amount occurred in the current period | Occurred in previous period |
| Investment income from disposal of trading financial assets | 3,674,941.97 | |
| Investment gain of financial products | 1,155,183.42 | 4,463,541.25 |
| Total | 1,155,183.42 | 8,138,483.22 |
(XVI) Supplementary Materials
1. Detailed accidental gain/loss
√ Applicable □ Inapplicable
In RMB RMB
| Item | Amount | Notes |
| Gain/loss of non-current assets | -27,108.78 | |
| Subsidies accounted into the current income account (except the government subsidy closely related to the enterprise’s business and based on unified national standard quota) | 3,504,406.39 | |
| Capital using expense charged to non-financial enterprises and accounted into the current income account | 355,987.05 | |
| Gain from entrusted investment or assets management | 4,003,332.19 | |
| Gain/loss from change of fair value of transactional financial asset and liabilities, and investment gains from disposal of transactional and derivative financial assets and liabilities and sellable financial assets, other than valid period value instruments related to the Company’s common businesses | 882,741.74 | |
| Write-back of impairment provision of receivables and contract assets for which impairment test is performed individually | 16,097.16 | |
| Gain/loss from commissioned loans | 21,351.12 | |
| Other non-business income and expenditures other than the above | 4,495,326.37 | |
| Less: Influenced amount of income tax | -1,952,557.71 | |
| Influenced amount of minority shareholders’ equity | 0.00 | |
| Total | 15,204,690.95 | -- |
Explanation statement should be made for accidental gain/loss items defined and accidental gain/loss items defined as regulargain/loss items according to the Explanation Announcement of Information Disclosure No. 1 - Non-recurring gain/loss mentioned.
□ Applicable √ Inapplicable
2. Net income on asset ratio and earning per share
| Profit of the report period | Weighted average net income/asset ratio | Earning per share | |
| Basic earnings per share (yuan/share) | Diluted Earnings per share (yuan/share) | ||
| Net profit attributable to common shareholders of the Company | 2.55% | 0.11 | 0.11 |
| Net profit attributable to the common owners of the PLC after deducting of non-recurring gains/losses | 2.25% | 0.10 | 0.10 |
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profits and assets in financial statements disclosed according to the international andChinese account standards
□ Applicable √ Inapplicable
(2) Differences in net profits and assets in financial statements disclosed according to the international andChinese account standards
□ Applicable √ Inapplicable
Chapter 11 Documents for Reference
1. The Interim Report 2019 and the Summary with signature of the legal representative (Chinese and English);
2. Financial statements stamped and signed by the legal representative, CFO and accounting manager;
3. Originals of all documents and manuscripts of Public Notices of the Company disclosed in public in the newspapers as designatedby China Securities Regulatory Commission.