Interim Report 2025 of China Fangda Group Co. Ltd.China Fangda Group Co. Ltd.2025 Interim Report
August 2025
1Interim Report 2025 of China Fangda Group Co. Ltd.
Chapter 1 Important Statement Table of Contents and Definitions
The members of the Board of Directors and the senior management
guarantee that the announcement is free from any false information
misleading statement or material omission 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 Chief
Financial Officer and Mr. Wu Bohua the manager of accounting department
declare: the Financial Report carried in this report is authentic and completed.All the Directors have attended the meeting of the board meeting at which
this report was examined.This semi-annual report contains forward-looking statements such as
future plans which do not constitute a substantial commitment by the
Company to investors. Investors and related parties should maintain sufficient
risk awareness and understand the differences between plans forecasts and
commitments.The Company has detailed the potential risks the company may face in
this report. Please refer to the section XI. Risks and Countermeasures Faced
by the Company in Chapter 3 Management Discussion and Analysis for more
information.The Company will distribute no cash dividends or bonus shares and has
no reserve capitalization plan.
2Interim Report 2025 of China Fangda Group Co. Ltd.
Table of Contents
Chapter 1 Important Statement Table of Contents an... 2
Chapter II About the Company and Financial Highlig... 7
I. Company Profile .................................. 7
II. Contacts and Liaisons ............................7
III. Other Information ...............................7
IV. Financial Highlight ............................. 8
V. Differences in Accounting Data Under Domestic a....8
VI. Accidental Gain/Loss Item and Amount .............9
Chapter III Management Discussion and Analysis ..... 10
1. Major Businesses of the Company during the Repo...10
II. Core Competitiveness Analysis .................. 14
III. Industry Situation During the Reporting Perio...18
IV. Main Business Analysis ..........................24
V. Non-core Business Analysis .......................26
VI. Assets and Liabilities ..........................27
VII. Investment .....................................28
VIII. Major Assets and Equity Sales .................31
IX. Analysis of Major Joint Stock Companies .........31
X. Structural Entities Controlled by the Company ....32
XI. Risks Faced by the Company and Countermeasures.. 32
XIII. Implementation of the Action Plan for "Doubl...33
Chapter IV Corporate Governance Environment and So...33
I. Changes in the Directors Supervisors and Senior.. 33
II. Profit Distribution and Reserve Capitalization...33
III. Share Incentive Schemes Staff Shareholding Pr.. 34
IV. Disclosure of Environmental Information ........ 34
V. Social Responsibility ........................... 34
Chapter V Significant Events ........................35
I. Commitments that Have Been Fulfilled and Not Fulfilled by Actual Controller Shareholders
Related Parties Acquirers of the Company ............35
II. Non-operating Capital Use by the Controlling Shareholder or Related Parties in the Reporting
Term ............................................... 35
III. Incompliant External Guarantee .................35
IV. Engaging and Dismissing of CPA ................. 35
V. Statement of the Board on the “Non-Standard Auditors' Report” Issued by the CPA on the
Current Report Period .............................. 35
VI. Statement of the Board of Directors on the Non.. 35
VII. Bankruptcy and Capital Reorganizing ............35
VIII. Lawsuit ...................................... 35
IX. Punishment and Rectification ................... 36
X. Credibility of the Company Controlling Sharehol.. 36
XI. Material Related Transactions ...................36
3Interim Report 2025 of China Fangda Group Co. Ltd.
XII. Significant Contracts and Performance ......... 37
13. Other Material Events ...........................45
XIV. Material Events of Subsidiaries ............... 45
Chapter VI Changes in Share Capital and Shareholde...46
I. Changes in Shares ................................46
II. Share Placing and Listing ...................... 48
III. Shareholders and Shareholding ..................48
IV. Changes in Shareholding of Directors and Senio.. 50
V. Changes in Controlling Shareholder or Actual Co.. 50
VI. Preferred Shares ............................... 52
Chapter VII Information about the Company's Securi...53
Chapter VIII Financial Statements ...................54
I. Auditor's Report .................................54
II. Financial Statements ............................54
III. General Information ........................... 68
IV. Basis for the Preparation of Financial Stateme...69
V. Significant Account Policies and Estimates .......69
VI. Taxation ...................................... 129
VII. Notes to the Consolidated Financial Statement..131
VIII. R&D Expenses ................................ 176
IX. Change to Consolidation Scope ..................176
X. Equity in Other Entities ....................... 176
XI. Government Subsidies ...........................181
XII. Risks of Financial Tools ......................182
XIII. Fair Value ...................................187
XIV. Related Parties and Transactions ............. 189
XV. Commitment and Contingent Events ...............193
XVI. Post-balance-sheet Events .....................197
XVII. Other Material Events ....................... 197
XVIII. Notes to Financial Statements of the Parent..198
XIX. Supplementary Materials .......................204
Chapter IX Other Submitted Data ....................207
I. Other Major Social Safety Issues ................207
II. Register of Activities such as Research Communication and Interviews during the Reporting
Period .............................................207
III. Financial Transactions between the Listed Company and Its Controlling Shareholder and Other
Related Parties ....................................207
4Interim Report 2025 of China Fangda Group Co. Ltd.
Reference
1. Financial statements stamped and signed by the legal representative CFO and accounting manager;
2. Originals of all documents and manuscripts of Public Notices of the Company disclosed in public.
5Interim Report 2025 of China Fangda Group Co. Ltd.
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.General Meeting of Shareholders or Shareholders' the General Meeting of Shareholders of China Fangda
Refers to
Meeting Group Co. Ltd.Board of Directors Refers to Board of Directors of China Fangda Group Co. Ltd.Banglin Technology Refers to Shenzhen Banglin Technologies Development Co. Ltd.Shengjiu Co. Refers to Shengjiu Investment Ltd.Fangda Jianke Refers to Shenzhen Fangda Jianke Group Co. Ltd.Fangda Zhiyuan Refers to Fangda Zhichuang Technology Co. Ltd.Fangda Jiangxi New Material Refers to Fangda New Materials (Jiangxi) Co. Ltd.Fangda New Resource Refers to Shenzhen Fangda New Energy Co. Ltd.Fangda Property Refers to Shenzhen Fangda Property Development Co. Ltd.Fangda Chengdu Technology Refers to Chengda Fangda Construction Technology Co. Ltd.Fangda Dongguan New Material Refers to Dongguan Fangda New Material Co. Ltd.Kechuangyuan Software Refers to Shenzhen Qianhai Kechuangyuan Software Co. Ltd.Fangda Property Refers to Shenzhen Fangda Property Management Co. Ltd.Fangda Jiangxi Property Refers to Fangda (Jiangxi) Property Development Co. Ltd.Fangda Hongjun Investment Refers to Shenzhen Hongjun Investment Co. Ltd.Fangda Yunzhu Refers to Shenzhen Fangda Yunzhu Technology Co. Ltd.Fangda Zhijian Refers to Shanghai Fangda Zhijian Technology Co. Ltd
Jiangxi Fangda Intelligent Manufacturing Technology
Fangda Intelligent Manufacturing Refers to
Co. Ltd.SZSE Refers to Shenzhen Stock Exchange
6Interim Report 2025 of China Fangda Group Co. Ltd.
Chapter II About the Company and Financial Highlights
I. 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
II. Contacts and Liaisons
Secretary of the Board Representative of Stock Affairs
Name Ye Zhiqing Guo Linchen
39th Floor Building T1 Fangda Town 39th Floor Building T1 Fangda Town
Address No.2 Longzhu 4th Road Nanshan No.2 Longzhu 4th Road Nanshan
District Shenzhen District Shenzhen
Telephone 86(755) 26788571 ext. 6622 86(755) 26788571 ext. 6622
Fax 86(755)26788353 86(755)26788353
Email zqb@fangda.com zqb@fangda.com
III. Other Information
1. Liaison
Changes to the Company's registration address office address post code website or email during the report period
□ Applicable □ Inapplicable
20th Floor Fangda Building No. 011 Keji South 12th Road
Registered address Gaoxin Community Yuehai Street Nanshan District
Shenzhen
Post code 518057
39th Floor Building T1 Fangda Town No.2 Longzhu 4th
Office address
Road Nanshan District Shenzhen
Post code 518055
Website http://www.fangda.com
Email fd@fangda.com
Enquiry date on specific websites for provisional
22 April 2025
announcement disclosure (if any)
The Resolution Announcement of the 13th Meeting of the 10th
Website where specific websites for provisional announcement
Board of Directors published on CNINFO
disclosure are listed (if any)
(www.cninfo.com.cn)
7Interim Report 2025 of China Fangda Group Co. Ltd.
2. Information disclosure and inquiring
Changes to the information disclosure and inquiring place
□ Applicable□ Inapplicable
The names and websites of the securities exchange websites and media where the company discloses its semi-annual report as
well as the location of the company's semi-annual report remain unchanged during the reporting period. Please refer to the 2024
annual report for specific details.
3. Other information
Whether other relevant information has changed during the reporting period
□ Applicable□ Inapplicable
IV. Financial Highlight
Whether the Company needs to make retroactive adjustment or restatement of financial data of previous years
□ Yes□ No
Year-on-year change
This report period Same period last year
(%)
Turnover (yuan) 1598286450.04 2133845587.76 -25.10%
Net profit attributable to shareholders of
17289598.23116795117.62-85.20%
the listed company (yuan)
Net profit attributable to the shareholders
of the listed company and after deducting 14383496.33 111689105.39 -87.12%
of non-recurring gain/loss (yuan)
Net cash flow generated by business
-266347227.85-171530998.21-55.28%
operation (yuan)
Basic earnings per share (yuan/share) 0.0161 0.1088 -85.20%
Diluted Earnings per share (yuan/share) 0.0161 0.1088 -85.20%
A decrease of 1.67
Weighted average net income/asset ratio 0.28% 1.95%
percentage points
End of the report period End of last year Year-on-year change
Total asset (yuan) 13117881678.37 13555387225.21 -3.23%
Net profit attributable to the shareholders
6091258814.166125803906.35-0.56%
of the listed company (RMB)
The Company's net profit attributable to shareholders of the listed company decreased by 85.20% in the first half of 2025
primarily due to the increase in impairment provision for accounts receivable in the curtain wall system and new materials industry
as well as a decline in operating revenue.V. Differences in Accounting Data Under Domestic and Foreign Accounting Standards
1. Differences in net profits and assets in financial statements disclosed according to the international and
Chinese account standards
□ Applicable□ Inapplicable
There is no difference in net profits and assets in financial statements disclosed according to the international and Chinese account
standards during the report period.
8Interim Report 2025 of China Fangda Group Co. Ltd.
2. Differences in net profits and assets in financial statements disclosed according to the overseas and
Chinese account standards
□ Applicable□ Inapplicable
There is no difference in net profits and assets in financial statements disclosed according to the international and Chinese account
standards during the report period.VI. 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
-1522602.22
which assets impairment provision is made)
Government grants recognized in the current period's profit or loss
(except for government grants that are closely related to the
Company's normal business operations in line with national policies 3459933.02
and in accordance with defined criteria and have a continuous impact
on the Company's profit or loss)
Gains and losses from changes in the fair value of financial assets and
liabilities held by non-financial corporations and gains and losses from
the disposal of financial assets and liabilities except for effective 55166.72
hedging operations related to the Company's normal business
operations
Expenditures for employee
One-time expenses incurred by the enterprise due to the
placement incurred due to
discontinuation of related business activities such as expenditures for -1145361.48
the relocation of the
employee placement.Company's production site.Accumulated fair value
Gain/loss from change of fair value of investment property measured changes transferred due to
2763052.08
at fair value in follow-up measurement the disposal of investment
properties.Other non-business income and expenditures other than the above -357480.19
Less: Influenced amount of income tax 346644.61
Impact on minority interests (after tax). -38.58
Total 2906101.90
Other gain/loss items satisfying the definition of non-recurring gain/loss account:
□ Applicable□ Inapplicable
The Company has no other gain/loss items satisfying the definition of non-recurring gain/loss account
Circumstance that should be defined as recurrent profit and loss to Explanation Announcement of Information Disclosure No. 1 -
Non-recurring gain/loss
□ Applicable□ Inapplicable
The Company has no circumstance that should be defined as recurrent profit and loss to Explanation Announcement of
Information Disclosure No. 1 - Non-recurring gain/loss
9Interim Report 2025 of China Fangda Group Co. Ltd.
Chapter III Management Discussion and Analysis
1. Major Businesses of the Company during the Report Period
Established in Shenzhen in 1991 China Fangda Group Co. Ltd. primarily engages in businesses such as intelligent platform
screen door equipment and systems for rail transit high-end intelligent curtain wall systems and new materials new energy and
commercial management and services. The Company's main products intelligent platform screen door equipment and systems for
rail transit and intelligent curtain walls have become global industry benchmarks. The urban rail transit platform screen door
system has been recognized as a "Single Champion Product in Manufacturing" by the Ministry of Industry and Information
Technology and the comprehensive strength of the intelligent curtain wall system ranks among the industry leaders. The Company
currently has 7 national high-tech enterprises 6 "specialized and innovative" enterprises 2 "national intellectual property
advantage enterprises" 1 "national quality leader enterprise" and 2 provincial engineering technology research centers.In the face of increased external pressures deep industry adjustments and intensified market competition the Company adheres to
the general principle of seeking progress while maintaining stability. It focuses on the theme of "Digital Intelligence
Empowerment and Scientific Management" vigorously promoting the deep integration of AI technology with various industries to
continuously drive high-quality development. In the first half of 2025 the Company achieved an operating revenue of
RMB1598286500 and a net profit attributable to the owners of the parent company of RMB17289600. As of the end of the
reporting period the Company's order reserves amounted to RMB7172677700 which is 4.49 times the operating revenue for the
first half of 2025 providing a solid foundation for achieving the Company's future production and operational goals.(I) Intelligent Platform Screen Door Equipment and Systems for Rail Transit
* Globally Leading Competitive Advantage
As a pioneer and leader in the intelligent platform screen door industry for rail transit the Company is committed to implementing
the national "Go Global" strategy and actively responding to the "Belt and Road Initiative." By continuously enhancing the
intrinsic value of its brand and leveraging its inherent strengths the Company has gained respect and recognition in both domestic
and international markets through innovative technology high-quality products and excellent services. With over twenty years of
experience the Company has developed industry-leading advantages in technology brand and service. It has secured projects for
rail transit screen door systems in countries and regions along the "Belt and Road" including Singapore Malaysia Hong Kong
Taipei Thailand India Greece Colombia and the Philippines. With a strong independent brand and R&D capabilities the
Company has successfully expanded into international markets transitioning from merely exporting products to exporting
technology and brand becoming a "golden business card" for China's high-end rail transit equipment manufacturing on the global
stage. During the reporting period the Company's intelligent platform screen door equipment and systems for rail transit generated
an operating revenue of RMB316923500 representing a 20.30% increase compared to the same period last year. Of this
overseas business revenue was RMB122580200 which is an 8.34% increase from the previous year. As of the end of the
reporting period the order reserves for this sector amounted to RMB2256940700 which is 7.12 times the operating revenue for
the first half of 2025. Despite the lack of strong recovery in the global economy and insufficient effective demand domestically
the Company's intelligent platform screen door equipment and systems for rail transit have maintained strong resilience
demonstrating robust competitiveness and comprehensive strength in technology brand and market as well as significant
advantages in new quality productivity.During the reporting period the Company secured the order for the Phase I platform door renovation project at Shenzhen Futian
High-Speed Rail Station. This includes the dismantling of existing platform doors and the R&D design production and
installation of new intelligent full-height platform doors that accommodate flexible and varied train models. The successful
implementation of this project is of milestone significance marking a historic leap for Fangda's platform door system from the
metro era to the high-speed rail era. It will create three "firsts" in China: the first high-speed rail platform door set near the
10Interim Report 2025 of China Fangda Group Co. Ltd.
platform edge the first to adopt a fully intelligent vehicle recognition system and the first high-speed rail platform door to pass
China Railway's inspection and certification. The Company will become a foundational provider of solutions for the high-speed
rail era in China.* Comprehensive Breakthrough in Core Technology
The Company consistently adheres to a technology-driven approach and market-oriented strategy committed to providing high-
quality platform screen door products and services for global customers. During the reporting period the Company's project for
the installation of platform doors on the Hong Kong East Rail Line was completed six months ahead of schedule marking the
official entry of Hong Kong's century-old railway into a new phase of intelligent and safe operation. This project utilized modular
technology and precise management employing the pioneering "install and use immediately" construction model. The entire
process was completed within the extreme window period of 1:30 AM to 3:30 AM ensuring zero interference with daytime
operations. The project set an industry record by installing three unit doors within three hours and completing the installation of a
215-meter-long platform side within four weeks. To address the global challenge of installing curved platform doors the Company
independently developed the "central pivot point design for unit sliding doors" achieving seamless door opening and closing
through high-precision measurement. The project also featured a SIL2 safety-rated laser radar detection system eliminating the
risk of passenger entrapment. The equipment was certified with IP65 protection providing resistance to typhoons heavy rain and
ultraviolet rays making it suitable for Hong Kong's complex climate. The success of this project provides a valuable model for
platform screen door projects in the Guangdong-Hong Kong-Macao Greater Bay Area and globally driving technological
innovation in the industry.* Continuous Advancement in the Industrialization of AI Technology
The Company has been deeply involved in the platform screen door sector of rail transit for over twenty years possessing a
fully autonomous and efficient R&D capability across the entire chain. This enables the Company to offer customers more
intelligent efficient eco-friendly and reliable rail transit equipment and full life-cycle system solutions achieving multi-win and
win-win outcomes with stakeholders. During the reporting period the Company continued to advance the industrialization of AI
technology achieving significant milestones.Intelligent Interaction System: The integration of the AI voice recognition module with intelligent advisory software was
completed supporting multi-terminal voice command control and professional Q&A functionalities. The system has undergone
prototype validation achieving an in-depth combination of natural language processing technology and rail transit scenarios. Users
can perform equipment control and receive professional consultation on platform screen doors through voice interaction.Intelligent Operations and Maintenance System: The independently developed CBMS intelligent operations and
maintenance system (including both web and mobile applications) was fully deployed in the Hong Kong 1254 project. It is
currently running stably in a shared cloud environment and is under trial use by MTR Corporation receiving positive feedback on
system reliability and user experience.Visual Recognition Technology: The AI visual recognition system for trains optimized for high-speed rail scenarios
completed core technological breakthroughs at Shenzhen Futian Station. After on-site real train verification at Shenzhen North
Station all performance indicators met operational standards providing crucial technical support for the construction of intelligent
stations.The Company is committed to continuous R&D investment. As of now the Company holds 313 domestic and international
patents for platform screen door systems in urban rail transit (including 69 invention patents) 22 international PCT patents and 15
computer software copyrights forming a core technology group and intellectual property system with fully independent
intellectual property rights.* Intelligent Operations and Maintenance Empowering the Rail Transit Aftermarket
With the rapid growth of urban rail transit operating mileage the expansive rail transit aftermarket is entering an upward
cycle. The demand for operations and maintenance is becoming increasingly prominent positioning the operations and
maintenance market as a new blue ocean for extending the value of the industry chain. Intelligence and specialization are set to
11Interim Report 2025 of China Fangda Group Co. Ltd.
become future development trends. The Company has independently developed an intelligent operations and maintenance support
system for platform screen doors leveraging AI big data and other information technologies. This system effectively enables
real-time monitoring of rail transit system equipment status fault prediction and intelligent maintenance decision-making thereby
reducing system maintenance costs lowering equipment failure rates and improving maintenance efficiency and station
operational intelligence. During the reporting period the Company's revenue from maintenance services in the rail transit platform
screen door industry reached RMB33455800 accounting for 10.56% of the rail transit platform screen door business revenue
representing a 2.84% increase compared to the same period last year and setting a new historical high. The promising development
opportunities in the Company's professional technical maintenance service business are gradually emerging.The design manufacturing and operations and maintenance systems of the Company's rail transit platform screen doors have
been comprehensively upgraded with innovative technologies such as AI and 5G. With strong technical reserves outstanding
brand advantages and significant competitive advantages these systems have become an important growth engine for the
Company.(II) Intelligent Curtain Wall Systems and New Materials Industry
* "Smart Manufacturing + AI" Empowering Industry Development
During the reporting period the Company focused on "green intelligence" as its strategic core achieving comprehensive
breakthroughs from product R&D to industry upgrading by enhancing R&D efforts in technological innovation AI empowerment
and digital tools. The Company not only consolidated its leading position in the curtain wall industry but also built core
competitiveness through technological barriers promoting the industry's development towards digitalization and sustainability.Technological Breakthroughs Setting Industry Benchmarks: During the reporting period the Company launched 30
projects under the smart curtain wall systems and new materials R&D plan filed 30 new patent applications and received 37 new
patent grants. The Company has obtained 705 patents for smart curtain wall systems and new materials 21 software copyrights
and participated in drafting 35 national/industry technical specifications and standards. The Company invested RMB61514200 in
R&D during the reporting period with an R&D expense ratio of 3.85%. It successfully developed new curtain wall products such
as the "New Sunshade Energy-saving Glass Lantern Curtain Wall System" and the "AI Intelligent Wind and Rain Sensing Electric
Sliding Window System" significantly enhancing building energy efficiency and setting new benchmarks for green buildings. The
development and production of the industry's first fully automated aluminum panel production line marked a breakthrough in
"Made in China" leading foreign technological innovations significantly enhancing production efficiency and achieving product
performance at an internationally leading level.Accelerating the Transformation of Technological Innovations: The Company continuously improves its technological
innovation system actively promoting the transformation and application of technological innovation achievements achieving a
leap in productivity quality. During the reporting period the Company's self-developed products "Fangda System Louvers" and
"Fangda Slot Embedded Parts" were widely applied in smart curtain wall projects such as Guangzhou Yuehai Cloud Port City and
Xiangjiang No.1. Innovative products like the "New Double-curved Aluminum Composite Panel Unit Curtain Wall System" and
the "Ultra-high Weather-resistant Titanium Honeycomb Panel" have generated economic benefits. In the future the Company will
continue its "innovation-transformation-application" development model to build sustainable competitive barriers.Digital Reconstruction of Industry Ecology: During the reporting period the Company established the curtain wall
industry's first full lifecycle digital twin system (BIM+AI+3D scanning) achieving full-process coordination from design to
production to construction improving the accuracy and efficiency of complex curtain walls and shortening project timelines by
20%. The Company's development of nine major information management systems has advanced its digital development
including the OA Office System HR Human Resources System ERP Financial Management System CRM Customer
Relationship Management System PMS Project Management System MES Production Management System VPO Supply
Management System CMS Contract Management System and QAS Quality and Safety Management System. These systems
enable information exchange and resource sharing from personnel management and office management to the full lifecycle of
curtain walls.
12Interim Report 2025 of China Fangda Group Co. Ltd.
Global Technology Export: The Company independently developed curtain wall systems that meet American and
Australian standards (such as AS NZS 4284-2008 Testing of building facades) including the "60 Series Framed Curtain Wall" and
the "Ultra-large Seismic GRC Green Energy-saving Unit Curtain Wall" covering overseas projects in the Middle East and
Australia becoming a benchmark for Chinese curtain wall technology going global.* Diverse High-Quality Project Matrix Leading the New Era of Intelligent Curtain Walls
In the context of industry-wide pressure the Company adheres to a principle of controllable risk while actively exploring
high-end curtain wall markets both domestically and internationally. By focusing on premium clients and key regions and projects
the Company seeks to deliver high-quality engineering by continuously tapping into its potential aiming to provide
comprehensive one-stop services for building curtain wall projects to global clients. The Company has undertaken numerous
landmark buildings in areas such as super high-rise buildings government public cultural venues corporate headquarters buildings
office buildings hospitals and schools establishing itself as the preferred brand in the high-end curtain wall systems and materials
industry. During the reporting period the Company secured multiple international high-quality curtain wall project orders. These
include domestic benchmark projects like the landmark buildings "Hangzhou Ant Financial Global Headquarters Phase II" the
"JD Shenzhen Headquarters Complex" smart park and the music technology landmark "Guangzhou Kugou Music Building."
Additionally the Company successfully obtained several international orders ranging from high-end office buildings in the core
business districts of developed countries like "525 Church St in Melbourne Australia" to projects in countries along the Belt and
Road Initiative such as the "Mirai by Nirman project in Dhaka Bangladesh." This diverse project matrix fully demonstrates the
Company's technical strength in the curtain wall field international project management capability and outstanding brand
premium capability. In the first half of 2025 the Company's revenue from the intelligent curtain wall and new materials industry
reached RMB1184916500. As of the end of the reporting period the order reserve amount was RMB4915737000 which is
4.15 times the revenue from this industry in the first half of 2025 indicating a sufficient order reserve.
* Deepening Global Layout Against the Trend Highlighting Overseas Strategy Effectiveness
Amid intensified competition in the domestic curtain wall market and deep adjustments in the real estate industry the
Company steadfastly implements its overseas strategy continuously expanding into overseas markets. While consolidating its
advantageous markets such as Australia the Company has completed strategic layouts in Southeast Asia and the Middle East
implementing localized management strategies and operational models based on market characteristics to build a well-structured
overseas market system. By concentrating quality human and material resources the Company ensures ample resource support for
overseas business to meet its development needs. The Company has established long-term strategic partnerships with international
curtain wall consultancy firms such as INHABIT MEINHARDT and ALT to provide design certification for overseas projects
reducing overseas technical risks. Additionally the Company engaged in exchanges with a visiting delegation of government
officials from Francophone African countries building a solid bridge for deep cooperation in multiple fields particularly in
technology and smart infrastructure with Francophone African countries. The overseas business layout will open new market
spaces and profit growth points for the Company.* "Green Island Project" Sets Benchmark for Shared Environmental Infrastructure
In the pursuit of the "dual carbon" goals and the development of new quality productivity the Company actively undertakes
its mission in the current era vigorously promoting the high-end intelligent and green development of the manufacturing industry.In 2024 the Company's Fangda (Ganzhou) Low-Carbon Intelligent Manufacturing Base commenced operations. This base is a
"5G+ Smart Factory" integrating 5G digitalization the Internet of Things and intelligence. Its coating center is recognized by the
Ministry of Ecology and Environment as a national-level "Green Island Project." Through the co-construction and sharing of
intensive environmental protection infrastructure the project achieves unified pollution control and resource recycling within the
park completely transforming the traditional decentralized model of manufacturing enterprises and realizing scale effects. The
project employs advanced environmental treatment technologies to achieve zero pollution and zero emissions providing the
Company with the most advanced green environmental production capacity. Surplus capacity can be shared with surrounding
13Interim Report 2025 of China Fangda Group Co. Ltd.
manufacturing enterprises promoting the overall green upgrade of regional industries. The "Green Island Model" has become a
model of national green manufacturing demonstration projects.
(3) New energy industry
Guided by the national "dual carbon" strategic goals the Company continues to deepen its layout in the new energy industry
focusing on the development of Building Integrated Photovoltaics (BIPV) and distributed photovoltaic power station businesses.As one of the first domestic enterprises in BIPV technology research and application the Company has established a full industry
chain service system covering design manufacturing integration and operation accumulating significant technological
advantages in the green energy field. Projects such as the distributed photovoltaic power station in Pingxiang Jiangxi the
Nanchang Jiangxi Isuzu Motors parking lot photovoltaic power station and the Songshan Lake base photovoltaic power station in
Dongguan Guangdong have maintained good operation continuously contributing stable profits and cash flow to the Company.During the reporting period the Company's contracted projects including the Shenzhen Luhu Center and the Guangzhou Kugou
Music Building curtain wall project adopted BIPV technology. The photovoltaic curtain wall covers an area of approximately
1400 square meters with an estimated annual power generation of about 230000 kWh saving 92 tons of standard coal annually
and reducing carbon dioxide emissions by 230 tons. This provides a replicable technical path for carbon neutrality in urban
buildings.(IV) Commercial Management and Service Industry
The Company's commercial management and property service projects are mainly distributed in the core areas of Shenzhen
and Nanchang. Through differentiated positioning and a digital leasing system the Company achieves precise customer profiling
and matching. In the Shenzhen market the Company fully leverages the locational advantage of the core engine city of the
Guangdong-Hong Kong-Macao Greater Bay Area. Driven by the dual engines of "precise positioning + digital empowerment" the
Company consistently maintains a higher-than-industry average decontamination rate and occupancy rate. By the end of the
reporting period the Fangda Town project achieved a sales decontamination rate of 98.84% and a self-owned property occupancy
rate of 74.57%. The Fangda Technology Building had an occupancy rate of 83.45%. In the Nanchang market the Fangda Center
project is located in the core area of the Honggutan CBD. Benefiting from the advancement of Jiangxi Province's "Strong
Provincial Capital" strategy it has good market expectations. By the end of the reporting period the sales decontamination rate
was 43.55% and the self-owned property occupancy rate was 88.74%.The Company actively builds a "AI + Property" digital ecosystem to accelerate the digital upgrade of property services.During the reporting period the Company successfully implemented an intelligent parking system and an intelligent work order
system achieving rapid response to customer needs. Through the intelligent energy-saving renovation of the central air
conditioning in Fangda Building and the public area lighting in Fangda Town the Company optimized equipment operation logic
using AI algorithms reducing energy consumption by 20% without affecting customer experience. Additionally by establishing
customer behavior analysis models the precision service matching rate increased by 40%. These intelligent measures provide
customers with a more convenient service experience and reflect the Company's active exploration and progress in the field of
smart property management.The Company's Henggang Dakang urban renewal project in Shenzhen continues to advance in its planning and project
establishment work.II. Core Competitiveness Analysis
(1) Rail Transit Platform Screen Door Equipment and Systems Industry
1. Technical R&D advantage
The Company adheres to independent innovation and has taken the lead in developing a rail transit platform screen door
system with independent intellectual property rights in China breaking the monopoly of foreign enterprises in the field of Chinese
rail transit platform screen doors. After years of continuous engineering practice and technological innovation it has formed a
14Interim Report 2025 of China Fangda Group Co. Ltd.
profound technical accumulation and possesses technological research and development advantages The Company has a mature
technical research and development system. The Platform Screen Door System R&D Center of Fangda Zhiyuan was awarded the
"Guangdong Provincial Engineering Technology Research Center" by the Guangdong Provincial Department of Science and
Technology. The Company boasts a comprehensive team of international technical experts with extensive experience and
excellent skills. The R&D team has strong technological innovation capabilities and its research achievements have successively
won the "Guangdong Science and Technology Award" and the "Shenzhen Science and Technology Progress Award." The
Company's urban rail transit platform safety doors have been recognized as a "Single Champion Product in Manufacturing" by the
Ministry of Industry and Information Technology. Fangda Zhiyuan has been listed as a "National Intellectual Property Advantage
Enterprise" and a "Specialized Refined and Innovative Enterprise of Shenzhen." It has also led the drafting of China's first
industry standard for "Urban Rail Transit Platform Screen Doors." China's first national standard for screen door products "Urban
Rail Transit Platform Screen Door Systems" was also led by Fangda Zhiyuan. It has been reviewed and approved by the National
Urban Rail Transit Standardization Technical Committee and the compilation work has been successfully completed. The high-
speed railway station platform door system project developed by the Company has been recognized as a "Shenzhen Enterprise
Innovation Record" and has been successfully implemented at Shenzhen Futian High-Speed Railway Station. This highlights
Fangda's sustained comprehensive leading strength and industry benchmark position in the field of urban rail transit equipment.
2. Industry chain advantage
As one of the first companies to enter the subway screen door industry in China the Company possesses the capability to
provide one-stop services across the entire industry chain including R&D design equipment manufacturing engineering services
technical services and maintenance and spare parts supply. A complete industrial chain helps the Company to realize resource
sharing at all stages and meet the market demand for specialized products and services thereby effectively reducing the
Company's production and management costs and improving profitability and competitive advantages.With the continuous increase in the operating mileage of domestic urban rail transit many subway screen door systems are
entering the maintenance period. The intelligent maintenance management system developed by the Company can statistically
analyze the operating status of station equipment in real-time and provide professional technical support to customers efficiently
and promptly through remote guidance of on-site technical service teams. The Company's operations and maintenance
management service team is now spread across more than 30 cities worldwide. As service capabilities improve and customer
recognition increases the revenue contribution from the Company's technical services will continue to grow.
3. Brand and Market Position Advantages
The Company entered the platform screen door system field early and has been highly praised and recognized by numerous
customers for its outstanding advantages in safety reliability availability and sustainability of its products establishing Fangda's
brand advantage and market position. Fangda Zhiyuan has been repeatedly rated as one of the "Top 100 Industry Leaders in
Shenzhen" and has been listed on the "Guangdong-Hong Kong-Macao Greater Bay Area Enterprise Innovation List." It has been
awarded titles such as "Excellent Equipment Supplier" "Outstanding Contribution Unit" and "Excellent Maintenance Unit" by
several subway companies. In the field of rail transit screen door systems the Company serves as the sole strategic partner for
globally influential companies like Alstom Siemens and LG participating in the construction of global urban rail transit screen
door system projects.As a pioneer of China's high-end rail transit equipment going global the Company has secured several major rail transit
screen door system projects in countries and regions such as Singapore Malaysia Hong Kong Taipei Thailand India Greece
Colombia and the Philippines. The Company's capabilities in product design timely delivery and product quality stability have
been fully recognized by overseas clients. The Company's excellent brand image and market reputation contribute to the
continuous enhancement of its competitiveness laying a solid foundation for the Company's healthy development.
4. Advantages of Adapting to Multinational Technical Standards
In its global strategic layout the Company has deeply participated in metro platform screen door projects in regions such as
the European Union North America Southeast Asia and South America. It has built a comprehensive standard database covering
15Interim Report 2025 of China Fangda Group Co. Ltd.
EN (European standards) BS (British standards) NFPA 130 (U.S. passenger rail transportation system standards) Singapore BCA
(Building and Construction Authority) and Colombia national technical specifications. This system not only achieves precise
localization of technical parameters but also forms a closed-loop solution of "standard pre-research - product development -
certification acceleration." This capability to adapt to global standards is becoming the Company's core competitiveness in
participating in international competition paving the way for "Intelligent Manufacturing in China" to go global.
5. Organizational structure advantage
The Company offers customized urban rail transit platform screen door systems which involve various management stages
from order acquisition to final project delivery including research and development design manufacturing testing installation
and maintenance. These services are characterized by high contract work refinement and long performance cycles. To provide
more comprehensive services the Company has established an organizational structure that meets customer needs equipped with
professionals in each service stage.The Company has a highly skilled and well-configured R&D team capable of completing technical solutions for customers'
special requirements. In product design the Company's technical team is experienced; in product manufacturing the Company has
large-scale production factories with a complete and reliable supply chain; in product testing the Company possesses
comprehensive and professional testing equipment and methods; in installation the Company holds a national first-class
qualification for professional contracting of building mechanical and electrical installation engineering allowing it to
independently undertake installation work; in maintenance the Company has established an operation and maintenance center
with a professional maintenance team and has maintenance centers at customer and project locations providing faster and more
considerate services.(II) Intelligent Curtain Wall Systems and New Materials Industry
1. Technological Innovation Advantages
The Company adheres to a strategy of technology-driven innovation actively utilizing digital and green technologies and
empowering the traditional curtain wall industry with artificial intelligence (AI) technology. The Company has obtained 701
patents for intelligent curtain wall systems and new materials as well as 21 software copyrights. It has participated in drafting 35
national or industry standards including the "Energy Conservation Design Standards for Public Buildings" setting 18 new records
for Chinese enterprises. It was the first in the domestic industry to establish a corporate postdoctoral workstation provincial
engineering technology research center and research design institute achieving advanced levels of independent innovation and
technology within the industry. The Company has played a significant role in product innovation process innovation results
transformation and talent cultivation. Six subsidiaries engaged in the intelligent curtain wall systems and materials industry are
recognized as national high-tech enterprises with five of them being "specialized refined and innovative" enterprises. This
provides a strong platform for the Company's high-quality innovative development. It has been awarded titles such as "National
Intellectual Property Advantage Enterprise" "National Quality Leader Enterprise" "Specialized Refined and Innovative Little
Giant" "Guangdong Provincial Engineering Technology Research Center" "Jiangxi Provincial Enterprise Technology Center"
"Jiangxi Provincial Intelligent Manufacturing Benchmark Enterprise" and "Guangdong Provincial Innovative SME." The
Company's independent and continuous innovation fosters its leading technological level and product delivery capability.
2. Brand Value Advantages
The Company has been deeply involved in the curtain wall field for over 30 years consistently upholding a commitment to
quality. It has earned high recognition from the industry and numerous professionals through its long-standing excellence in
product advantages and service quality establishing a strong reputation as one of the preferred brands in the domestic high-end
curtain wall system materials industry. The Company has received numerous accolades including the "National Quality Award"
"Luban Award (National Quality Project Award)" "Zhan Tianyou Civil Engineering Award" "China Building Decoration
Award" and over 200 provincial and ministerial-level awards. With over 1000 landmark projects globally the Company has
become a leading brand in the high-end curtain wall sector. The Fangda trademark has been recognized as a "China Well-known
Trademark" and has also been awarded the titles of "International Reputation Brand" and "Shenzhen Old Brand."
16Interim Report 2025 of China Fangda Group Co. Ltd.
3. Construction Experience Advantages
The Company's wholly-owned subsidiary Fangda Jianke holds the highest level qualifications for curtain wall design and
construction enterprises in China—Grade 1 Professional Contracting Qualification for Building Curtain Wall Engineering and
Grade A Qualification for Building Curtain Wall Engineering Design. It is one of the leading enterprises in the curtain wall
industry in China. The Company's intelligent curtain wall projects encompass super high-rise buildings large public buildings
corporate headquarters commercial real estate hospitals hotels and other projects featuring diverse forms and structures.Through constructing various types of projects the Company has accumulated a wealth of valuable construction experience. The
Company has earned unanimous praise from clients for its systematic intelligent construction framework extensive project
management experience and superior construction quality.
4. Industrial layout advantages
Over the years the Company has developed an industry layout for its intelligent curtain wall systems and materials with
Shenzhen as the headquarters and Shanghai Chengdu Dongguan and Ganzhou as production bases providing customers with
integrated solutions that include research and development design production project management construction and
maintenance services thereby creating a complete industrial chain in the curtain wall systems and materials sector. Among these
Fangda (Ganzhou) Low-Carbon Intelligent Manufacturing Base is a "5G+ Intelligent Factory" that integrates 5G digitization the
Internet of Things and intelligent technologies. It leads the industry in system innovation product development and
manufacturing and has now become a "Green Island" factory in the intelligent manufacturing + AI system. The Company's
comprehensive production base layout and complete industrial chain optimize production costs enhance efficiency and quickly
respond to market demand changes providing significant support for increasing market share and overall competitiveness.
5. Talent
The Company consistently emphasizes the development of its talent pool. Over the years it has cultivated an experienced
internationally-minded senior management team and a professional execution-oriented middle management team with a well-
established talent training system and talent reserve offering clear career development paths. The Company has a complete
incentive and evaluation system for the transformation of scientific and technological achievements truly implementing a survival
of the fittest approach to reduce staff while increasing efficiency fully stimulating the innovative vitality of R&D personnel. This
technological innovation supports and leads the Company's improvement in quality and efficiency ensuring sustainable and
healthy development and firmly follows the path of independent innovation becoming a driving force for high-quality enterprise
development.
(3) New energy industry
The Company's new energy industry primarily focuses on the application of new energy and energy-saving technologies
such as solar photovoltaic power plants and building-integrated photovoltaics (BIPV). Its business scope spans across the
construction and photovoltaic power generation industries. More than twenty years ago the Company actively pursued the
development of solar photovoltaic curtain wall system technology making it one of the earliest enterprises in China engaged in the
design manufacturing and integration of Building Integrated Photovoltaic (BIPV) systems.Distributed solar power PV power generation is closely related to the Company's curtain wall business. Part of the distributed
solar power PV systems are closely related to construction. Moreover in terms of product system integration the Company has
over twenty years of experience in electromechanical product integration and project management. It possesses professional
qualifications in mechanical and electrical installation among others.(IV) Commercial Management and Service Industry
The Company continues to delve deeply into artificial intelligence and AI technology leveraging differentiated positioning
and a digital investment attraction system to continuously enhance the value and effectiveness of the Fangda brand steadily
advancing amidst intense market competition. Over the years the Company has accumulated extensive experience in the
commercial management and services industry ensuring efficient management and strong execution capabilities.
17Interim Report 2025 of China Fangda Group Co. Ltd.
III. Industry Situation During the Reporting Period
(I) Intelligent Platform Screen Door Equipment and Systems for Rail Transit
1. Industry development
China's rail transit industry is achieving a critical leap from scale expansion to quality enhancement under the backdrop of
building a strong transportation nation urban agglomeration development and the "Dual Carbon" goals. Guiding policy
documents such as the "Outline for Building a Strong Transportation Nation" the "14th Five-Year Plan for National Economic
and Social Development and Long-Range Objectives for 2035" and the "14th Five-Year Plan for Modern Comprehensive
Transportation System Development" provide robust support for the rail transit equipment industry in which the Company
operates pointing the way for the Company to conduct research and develop new products.According to the "Urban Rail Transit Operation Data Express" released by the Ministry of Transport as of the end of June
2025 there were 54 cities in China operating 330 urban rail transit lines with an operational mileage of 11127.6 kilometers. In the
first half of 2025 a total of 149.3 kilometers of operational mileage was added and 4 new operational lines were introduced
indicating a stable development trend in urban rail transit.As countries and regions along the Belt and Road Initiative increase their investment in urban rail transit construction
Chinese high-end equipment manufacturing enterprises are expected to play a more significant role in the international market. As
a leader and promoter in the construction and operation & maintenance of rail transit platform screen door systems China Fangda
Group Co. Ltd. will continue to be guided by national strategies and relevant industrial policies. The Company will align with
industry development trends and market demands intensify technological innovation continuously enhance its core
competitiveness focus on developing high-tech value-added products and further increase its market share in the rail transit
platform screen door system sector.
2. Business Status
(1) Main products and purposes
The Company's main products are platform intelligent screen door systems for urban rail transit and it also provides product
operation and maintenance services. Urban rail transit platform screen door systems are installed at the platform edges of urban
rail transit stations isolating the track area from the waiting area. They feature continuous movable door barriers that correspond
to train doors and can be controlled to open and close at multiple levels including full-height enclosed screen door systems full-
height non-enclosed screen door systems and half-height screen door systems. Additionally the Company's independently
developed platform safety door system suitable for complex high-speed rail environments can intelligently open platform safety
doors corresponding to different types of incoming high-speed trains. This innovation will open new application scenarios and
market spaces in the future.The platform screen door system isolates the track from the platform waiting area effectively ensuring the safety of
passengers preventing them from falling off the track and also preventing unauthorized entry into the tunnel; In case of fire or
other fault modes it can be linked and controlled with relevant systems to achieve rapid smoke exhaust and passenger evacuation
and escape functions. The platform screen door system can effectively reduce dust noise and tunnel wind pressure entering the
platform from the tunnel providing a quiet comfortable and safe travel environment for passengers. Furthermore the platform
screen door system features passenger flow counting facilitating the diversion of passenger flow to low-density carriages during
peak times. The door body of the platform screen door system can also serve as a passenger information system platform enabling
multimedia interactive functions such as information broadcasting inquiry dissemination and commercial promotion.
(2) Main business model
The Company's rail transit intelligent screen door equipment industry is operated by its subsidiary Fangda Zhiyuan which is
an integrated supplier and service provider of rail transit intelligent screen door systems encompassing research and development
design manufacturing installation and technical services with a complete industrial chain. A mature and complete management
system for research and development procurement production sales and O&M has been established. In terms of research and
18Interim Report 2025 of China Fangda Group Co. Ltd.
development the Company has formed a research and development project initiation mechanism that combines independent basic
research with project needs; In terms of procurement suppliers are mainly selected and purchased by the project and a special
procurement team is set up to carry out the procurement work; In terms of production manage the Company's production activities
according to contract requirements and customer's production instructions; In terms of sales the Company's customers are metro
companies around the world and electromechanical general contracting units in the rail transit industry all of which are direct
sales and there is no distribution; in terms of operation and maintenance the Company already has an intelligent operation and
maintenance guarantee system for platform screen doors which can monitor the operation data in real time and quickly diagnose
and eliminate faults.
(3) Market competition pattern in which the Company is located and the Company's market position
As a world-class supplier of rail transit screen door systems the Company is the most trusted expert in rail transit screen door
systems by its customers. The Company's rail transit intelligent screen door systems cover more than 60% of cities with
operational metro systems in China and over 120 lines in more than 40 cities globally maintaining a strong leading position. The
Company actively responds to the national "Belt and Road Initiative" and its overseas screen door business is in a golden period
of development securing major rail transit screen door system projects in "Belt and Road" countries and regions such as Singapore
Malaysia Hong Kong Taipei Thailand India Greece Colombia and the Philippines. With the continuous expansion and
deepening of its overseas business the Company is expected to occupy a more significant position in the global rail transit
intelligent screen door field.The Company has been dedicated to the rail transit platform screen door field for over 20 years successfully developing rail
transit intelligent screen door systems with independent intellectual property rights and maintaining a leading technological
advantage. The Company has a comprehensive team of specialized talents in research and development design manufacturing
installation and technical services. It has authored the first industry standard for rail transit platform screen doors "Urban Rail
Transit Platform Screen Doors" (CJ/T236-2022) and participated in the compilation of the group standard "Acceptance
Specification for Urban Rail Transit Fully Automated Operation System" (T/URTA0009-2022). The Company's authored the first
national standard for screen door products "Urban Rail Transit Platform Screen Door System" which has been reviewed and
approved by the National Urban Rail Transit Standardization Technical Committee with the compilation work successfully
completed. Additionally the Company co-authored the "Technical Guidelines for Smart Station Construction in Rail Transit"
"Technical Specifications for Intelligent Detection System of Foreign Objects Between Urban Rail Transit Platform Screen Doors
and Train Doors" and "High-Speed Rail Platform Door System" showcasing the Company's profound technical expertise and
leading industry position.Moreover the Company's urban rail transit platform safety doors have been recognized by the Ministry of Industry and
Information Technology as "Single Champion Products in Manufacturing." Fangda Zhiyuan has been awarded several honors and
qualifications including "National Intellectual Property Advantage Enterprise" "Guangdong Province Science and Technology
Award" "National Key New Product" "National Torch Program Industrialization Demonstration Project" "Guangdong Province
Intelligent Rail Transit Platform Door Engineering Technology Research Center" "Shenzhen Science and Technology Progress
Award" and "Shenzhen Specialized and New Enterprise." It has also been the first to pass the international railway industry
standard IRIS management system and RAMS certification. The Company's domestic and international patents and computer
software copyrights have formed a core technology group and intellectual property system with independent intellectual property
rights.(II) Intelligent Curtain Wall Systems and Materials Industry
1. Industry development
In the first half of 2025 the development of China's curtain wall industry was significantly influenced by the macroeconomic
situation and policy environment. According to the 2025 State Council Government Work Report the GDP growth target is set at
around 5% with an expected urban job creation of over 12 million. While a series of growth-stabilizing policies implemented by
the state provided some support to the building curtain wall industry the sector faced significant pressure due to global
19Interim Report 2025 of China Fangda Group Co. Ltd.
uncertainties and insufficient domestic demand. Overcapacity in the construction industry led to intensified market competition
and declining profit margins with resources rapidly concentrating towards leading enterprises with strong risk resistance while
small and medium-sized enterprises encountered operational difficulties such as cash flow constraints.Current policies focus on green building and energy conservation. Documents such as the Ministry of Housing and Urban-
Rural Development's "14th Five-Year Plan for Building Energy Efficiency" and the State Council's "Energy Conservation and
Carbon Reduction Plan for the Building Sector" explicitly require the promotion of existing building renovations prefabricated
buildings and the development of new green buildings. The industry is accelerating its transition to producing green energy-
efficient and intelligent curtain wall products through innovative design smart manufacturing and safe installation becoming a
core driver in achieving the goal of building "good houses."
The Ministry of Finance and the Ministry of Housing and Urban-Rural Development have included the renovation of old
areas in the scope of support for demonstration cities. The urban village renovation policy has expanded from 35 mega and super-
large cities to nearly 300 prefecture-level cities. The General Office of the CPC Central Committee and the General Office of the
State Council's "Opinions on Continuously Promoting Urban Renewal Actions" clearly lists the renovation of old neighborhoods
factory areas and urban villages as core tasks. With the continuous release of policy benefits the urban renewal market involving
over 300 cities is becoming a new blue ocean for growth in the construction industry.During the reporting period the Company focused on dual-line development domestically and internationally. Domestically
it optimized customer group positioning and competition strategies emphasized resource investment in regions such as Hangzhou
Suzhou Chengdu and Chongqing and enhanced large customer quality through specialized services. It also improved the
standardized management system based on high-end residential project experience. Simultaneously the Company accelerated
overseas expansion by deploying elite teams to consolidate the Australian market and steadily advancing layouts in emerging
markets in Southeast Asia and the Middle East achieving order growth with controllable risks.
2. Business
(1) Main products and purposes
The Company's smart curtain wall systems are widely used in various buildings such as high-end office buildings corporate
headquarters urban complexes hotels large venues institutional or government office buildings and high-end residential
buildings. They effectively enhance the visual aesthetics of buildings improve energy efficiency and environmental protection
and better meet people's work and living needs. The smart curtain wall integrates modern building technology and intelligent
systems based on intelligent building technology incorporating moderate control of auxiliary technologies (such as heating heat
light and electricity) and reduces building energy consumption through digital and artificial intelligence technologies. The
Company's smart curtain wall projects have repeatedly won the highest award in China's construction field the "Luban Award
(National Quality Engineering Award)" positioning it at the forefront of global peers and establishing it as a renowned global
curtain wall brand reflecting the high-quality characteristics of new quality productivity.The Company fully leverages its advantages in technology services and talent to conduct inspections and checks on building
exterior maintenance systems building energy-saving renovations waterproofing and anti-corrosion maintenance and related
technical services. It has provided these services for over 8 million square meters of buildings demonstrating strong
competitiveness in the industry.New materials with a focus on low-carbon environmental protection intelligence and sustainability are one of the key
industries the Company is actively developing. China Fangda Group Co. Ltd. possesses strong research and development
capabilities and advanced production bases for PVDF aluminum panels and aluminum honeycomb panels. Its products have been
widely used in numerous major projects across more than 160 cities worldwide.
(2) Main business modes specific risks and changes;
The Company's primary business model is an integrated "design-production-construction" model which remained unchanged
during the reporting period. The Company secures contracts for smart curtain wall design installation and construction mainly
through bidding processes (public bidding and invited bidding). According to order requirements the Company provides
20Interim Report 2025 of China Fangda Group Co. Ltd.
comprehensive solutions encompassing design raw material procurement production installation and after-sales service. These
orders are typically non-standardized and customized with gross margins influenced by various factors including the owner's
budget bidding competition product materials building structure complexity project timeline and on-site construction and cost
management. Additionally due to the long implementation cycles of orders they are significantly affected by national industrial
policies raw material prices and labor market fluctuations. The technical requirements of different orders vary and cannot simply
replicate existing experiences demanding high levels of technical and management expertise. The engineering payment settlement
process for orders is divided into stages such as engineering advance payment engineering progress payment completion
acceptance completion settlement payment and quality guarantee deposit. The specific settlement situation depends on the
completion progress and contract agreement. One of the main challenges faced by curtain wall companies is the risk of capital
turnover. The engineering contracting model often requires companies to advance substantial funds for material procurement and
construction while project payment cycles are lengthy. In the current context of adjustments in the real estate industry accounts
receivable have increased and some clients face obstacles in fund repayment.To address the risk of payment obstacles the Company has strengthened project contract tracking and accounts receivable
management including adjusting organizational structure establishing specialized teams for collections and coordinating
collection management tasks. The Company has improved its contract performance management mechanisms implementing
diversified collection methods such as negotiation formal notifications and legal proceedings according to project characteristics
to ensure precise and effective collections. A comprehensive project lifecycle risk assessment mechanism has been established
implementing tiered dynamic risk control while intensifying the assessment of accounts receivable collections. Through these
organizational safeguards process standardization risk control and assessment incentives the Company has gradually improved
its capital recovery efficiency further mitigating payment obstacles. Simultaneously in terms of order selection the Company will
raise entry thresholds focusing on projects with better payment conditions to control risks at the source ensuring a positive cash
flow cycle and the Company's stable development.
(3) Market competition pattern in which the Company is located and the Company's market position
During the reporting period the building curtain wall industry exhibited characteristics of "stability under pressure and
accelerated differentiation." The industry's overall revenue slightly declined net profit was under pressure and cash flow was
generally tight. Some small and medium-sized enterprises began to show significant declines or even face survival crises and
market concentration within the industry is accelerating. In response to the domestic market's sluggish condition larger enterprises
with strong management capabilities are choosing to expand overseas or intensify their international expansion efforts.Competition among major enterprises within the industry is no longer limited to the domestic market quietly extending to regions
such as the Middle East.During the reporting period the Company's market position remained stable firmly positioned as an industry leader
consistently leading with outstanding technology service and brand influence demonstrating resilience against cyclical
fluctuations.
(3) New energy industry
With the advancement of "carbon neutrality" and green building policies the photovoltaic power generation industry has
entered a new stage of high-quality development. Building-integrated photovoltaics (BIPV) has become the main development
direction for the curtain wall industry. Policies such as the "General Specification for Building Energy Efficiency and Renewable
Energy Utilization" issued by the Ministry of Housing and Urban-Rural Development provide legal assurance for the promotion of
BIPV and create incremental market space for the application of photovoltaic systems in new buildings. Furthermore with the
reduction in photovoltaic module costs and technological advancements the penetration rate of BIPV is expected to further
increase bringing new growth opportunities to the industry.(IV) Commercial Management and Service Industry
1. Industry development
21Interim Report 2025 of China Fangda Group Co. Ltd.
In 2025 with the implementation of a series of national policies the real estate market is moving towards stabilization and
the socio-economic conditions continue to improve. Regional differentiation will bring new development opportunities to the
Guangdong-Hong Kong-Macao Greater Bay Area characterized by mature industrial development strong population attraction a
high rate of enterprise settlement and ongoing integration between Shenzhen and Hong Kong. The Shenzhen market still holds
significant potential for the future.
2. Main Business Model Business Project Formats Company Market Position and Competitive Advantages Main
Risks and Countermeasures
The Company's commercial development projects primarily adopt a self-development model with a combination of partial
sales and partial holding. Currently the products developed by the Company mainly include office spaces commercial properties
and apartments. Through years of operational services the Company has established a professional and efficient team effective
management processes and an information system capable of providing high-quality management and services. The Company's
specialization capabilities brand recognition occupancy rates and revenue levels continue to improve.Leveraging the brand advantage differentiated positioning and regional advantages of its commercial projects the Company
has secured a certain market position. However it still faces multiple risks such as housing price fluctuations policy regulations
and market competition. The Company will employ refined management flexibly adjust strategies and capitalize on policy
benefits to continuously optimize brand building and marketing promotion thereby reducing operational and management risks
and maintaining stable development.
3. New land reserve projects
Equity
Total land
Parcel or considerati
Land Land area Building Obtaining Interests price (ten
project Purpose 2 2 on (tenlocation (m ) area (m ) method percentage thousand
name thousand
yuan)
yuan)
None
4. Total land reserve
2 Total building area (10000 Remaining building areaProject/region name Floor area (10000 m )
m2) (10000 m2)
None
5. Main production development status
Accu
Estim
mulat
Total ated
Planni Area ed
Deve area total
Intere ng compl total
Land Starti lopm Comp Land compl invest
City/r Projec sts constr eted invest
Item locatio ng ent letion area eted ment
egion t form perce uction in this ment
n time progr rate (m2) in this (in
ntage area phase (in
ess 2 2 phase RMB(m ) (m ) RMB
(m2) 1000
1000
0)
0)
Shenz
Office
hen Fang No.2
comm May
Nansh da Longzh 100.0 100 100.0 35397. 2124 2177 2585 2836
th ercial 1an Tow u 4 0% % 0% 60 00.00 63.69 00 00
compl 2014
Distri n Road
ex
ct
Hong No.151 Office
Fang
gutan 6 comm May
da 100.0 100 100.0 16608. 6643 6537 6700 6699
New Ganjia ercial 1
Cent 0% % 0% 55 2.61 6.94 0 2.35
Distri ng compl 2018
er
ct North ex
22Interim Report 2025 of China Fangda Group Co. Ltd.
Nanch Avenu
ang e
Fangda
Center
6. Main project sales
Amou Settle
nt of Settle ment
Cumul
Cumul Sales sales ment amoun
Interes ative
Land Buildi Sellabl ative area in in the area in t in
City/re Project ts settlem
Item locatio ng area e area sales this current the this
gion form percen ent
n (m2) (m2) area period period current period
tage area
(m2) (m2) (RMB 2 period (RMB(m )
10000 (m2) 10000
))
Shenz
Office
hen No.2
Fangd comm
Nansh Longz 100.00 21776 93086 92002 92002
a th ercial - -an hu 4 % 3.69 .25 .95 .95
Town compl
Distric Road
ex
t
No.15
16
Hongg
Ganjia
utan Office
ng
New Fangd comm
North 100.00 65376 25996 11322 11322
Distric a ercial 138.84 106.8 138.84 106.8
Avenu % .94 .84 .70 .70
t Center compl
e
Nanch ex
Fangd
ang
a
Center
7. Main project lease
Interests
Leasable area Cumulative Average
Item Land location Project form percentag
(m2) leased area (m2) lease ratio
e
Shenzhen
Shenzhen Fangda Commercial and
Nanshan 100.00% 92470.58 68957.33 74.57%
Town office building
District
Shenzhen
Shenzhen Fangda
Nanshan Office building 100.00% 20464.75 17077.49 83.45%
Building
District
Jiangxi Nanchang Nanchang
Plant and office
Science and Jiangxi 100.00% 85472.88 47855.62 55.99%
building
Technology Park Province
Nanchang
Jiangxi Nanchang Commercial and
Jiangxi 100.00% 38165.36 33869.05 88.74%
Fangda Center office building
Province
8. First-level development of land
□ Applicable□ Inapplicable
9. Financing channel
Financing Ending
Financing cost Term structure (monetary unit: RMB10000)
financing range / averagesource
balance (in financing cost Within 1 year 1-2 years 2-3 years Over 3 years
23Interim Report 2025 of China Fangda Group Co. Ltd.
RMB10000)
Annual interest
Bank loan 110000.00 4000.00 4000.00 4500.00 97500.00
rate: 2.5%-5%
Annual interest
Total 110000.00 4000.00 4000.00 4500.00 97500.00
rate: 2.5%-5%
10. Development strategy and operation plan in next year
The main tasks for the Company's future commercial management and service business are to increase the occupancy rate of
the Shenzhen Fangda Town project and to clear the remaining inventory while vigorously promoting the sales of the Nanchang
Fangda Center project. The Company aims to continuously enhance project leasing operations and service levels deeply
advancing digitalization in the property service sector and actively exploring the application of new technologies like artificial
intelligence in property management. Examples include smart customer service intelligent security systems and smart cleaning
robots providing customers with intelligent shopping guidance behavior analysis and optimizing mall layout design using big
data to achieve convenience efficiency and intelligence thereby enhancing the customer shopping experience.At the same time the Company will according to the latest policies integrate and optimize existing resources to steadily
advance the application and approval process for the urban renewal project of the Shenzhen Henggang Dakan project.
11. Bank mortgage loan guarantee provided for commercial housing purchasers
□ Applicable □ Inapplicable
In accordance with business practices the Company's commercial management and service business provides mortgage loan
guarantees to purchasers of commercial housing with the type of guarantee being a phased guarantee. The term of the periodic
guarantee lasts from the effectiveness of guarantee contracts to the completion of mortgage registration and transfer of housing
ownership certificates to banks. As of June 30 2025 the Company's outstanding amount for the above-mentioned phased
guarantees was RMB4000000.
12. Joint Investments by Directors Supervisors Senior Management and the Listed Company
□ Applicable□ Inapplicable
IV. Main Business Analysis
Overview
See I. Major businesses of the Company during the Report Period
Year-on-year changes in major financial data
In RMB
YOY
This report period Same period last year Reason
change (%)
Turnover 1598286450.04 2133845587.76 -25.10%
Operating cost 1307537649.28 1737599184.98 -24.75%
Sales expense 22633578.48 23558271.96 -3.93%
Administrative expense 90172531.38 84841558.95 6.28%
Financial expenses 37580544.45 31489983.09 19.34%
Primarily due to a decrease in total
Income tax expenses -2457491.76 16519019.26 -114.88%
profit.R&D investment 61514176.71 85639602.88 -28.17%
Mainly due to a reduction in operating
Cash flow generated by
cash flow from the curtain wall
business operations -266347227.85 -171530998.21 -55.28%
systems and new materials business
net
compared to the same period last year.
24Interim Report 2025 of China Fangda Group Co. Ltd.
The net inflow from investment
activities this period was primarily
due to the refund of land use rights by
Fangda Zhiyuan Company; last year's
Cash flow generated by
net outflow was mainly due to
investment activities 32549961.22 -166718423.79 119.52%
expenditures on the construction of
net
the Fangda (Ganzhou) Low-Carbon
Intelligent Manufacturing Base and
machinery and equipment
investments.The net outflow from financing
activities this period was mainly due
Net cash flow
to dividend distribution; the reduction
generated by financing -41832513.28 465466353.53 -108.99%
compared to last year was primarily
activities
due to a decrease in the net balance of
bank borrowings.Mainly due to changes in net cash
Net increase in cash
-272127188.36 128801152.42 -311.28% flows from operating investing and
and cash equivalents
financing activities.Primarily due to an increase in the
Credit impairment ("-"
-59005981.56 -7874799.00 -649.30% provision for bad debts on accounts
for loss)
receivable this period.Mainly due to the reversal of
Investment impairment
4589393.55 -15876085.85 128.91% impairment provisions for contract
loss ("-" for loss)
assets this period.Other comprehensive income this
period was mainly due to changes in
the fair value of hedging instruments
After-tax net of other and foreign currency translation
misc. income attributed differences; the decrease compared to
1859020.9328592893.06-93.50%
to the shareholders of the previous period was primarily due
the parent company to the reclassification of some owner-
occupied properties to investment
properties measured at fair value from
fixed assets in the previous period.Major changes in profit composition or sources during the report period
□ Applicable□ Inapplicable
The profit composition or sources of the Company have remained largely unchanged during the report period.Turnover composition
In RMB
This report period Same period last year
Proportion in Proportion in YOY change
Amount operating Amount operating (%)
costs (%) costs (%)
Total turnover 1598286450.04 100% 2133845587.76 100% -25.10%
Industry
Metal production 1184916485.51 74.14% 1737754739.77 81.44% -31.81%
Railroad industry 316923499.00 19.83% 263455042.38 12.35% 20.30%
Commercial services 79515183.06 4.98% 118828634.36 5.57% -33.08%
New energy industry 9228271.51 0.58% 7061695.63 0.33% 30.68%
Others 7703010.96 0.48% 6745475.62 0.32% 14.20%
Product
Curtain wall system and 1184916485.51 74.14% 1737754739.77 81.44% -31.81%
25Interim Report 2025 of China Fangda Group Co. Ltd.
new materials
Subway screen door and
316923499.0019.83%263455042.3812.35%20.30%
service
Real estate rental and sales
79515183.064.98%118828634.365.57%-33.08%
and property services
PV power generation
9228271.510.58%7061695.630.33%30.68%
products
Others 7703010.96 0.48% 6745475.62 0.32% 14.20%
District
In China 1459381780.51 91.31% 1955457106.44 91.64% -25.37%
Out of China 138904669.53 8.69% 178388481.32 8.36% -22.13%
Industries products or regions accounting for more than 10% of the Company's operating revenue or profit
□ Applicable □ Inapplicable
In RMB
Year-on-year
Year-on-year Year-on-year
Gross change in
Turnover Operating cost change in change in gross
margin operating
operating costs margin
revenue
Industry
Metal
1184916485.511055106425.5910.96%-31.81%-29.61%-2.79%
production
Railroad
316923499.00226276904.9228.60%20.30%10.74%6.16%
industry
Commercial
79515183.0622323987.1171.92%-33.08%-26.61%-2.48%
services
Product
Curtain wall
system and 1184916485.51 1055106425.59 10.96% -31.81% -29.61% -2.79%
new materials
Subway screen
door and 316923499.00 226276904.92 28.60% 20.30% 10.74% 6.16%
service
Real estate
rental and
sales and 79515183.06 22323987.11 71.92% -33.08% -26.61% -2.48%
property
services
District
In China 1459381780.51 1221954113.16 16.27% -25.37% -23.97% -1.54%
Main business statistics adjusted in the recent one year with the statistics criteria adjusted in the report period
□ Applicable□ Inapplicable
V. Non-core Business Analysis
□ Applicable □ Inapplicable
In RMB
Amount Profit percentage Reason Whether continuous
Investment income -680394.74 -4.58% No
Gain/loss caused by Mainly due to the cumulative fair
2766545.64 18.63% No
changes in fair value value changes transferred upon the
26Interim Report 2025 of China Fangda Group Co. Ltd.
disposal of investment properties.Reversal of impairment provisions
Assets impairment 4589393.55 30.91% No
for contract assets.Non-operating revenue 219391.05 1.48% No
Non-business expenses 576871.24 3.88% No
Primarily due to the provision for
Credit impairment loss -59005981.56 -397.37% No
bad debts on accounts receivable.VI. Assets and Liabilities
1. Major changes in assets composition
In RMB
End of the report period End of last year
Proportion Proportion Change Notes
Amount in total Amount in total (% )
assets assets
Monetary capital 1111019576.80 8.47% 1491777341.84 11.01% -2.54%
Account receivable 963449533.00 7.34% 1123506196.98 8.29% -0.95%
Contract assets 2281362840.37 17.39% 2247698479.96 16.58% 0.81%
Inventory 745574640.16 5.68% 705666408.74 5.21% 0.47%
Investment real estate 5825827116.96 44.41% 5835036098.20 43.05% 1.36%
Long-term share equity
56655809.720.43%56690973.970.42%0.01%
investment
Fixed assets 932515821.46 7.11% 940894344.39 6.94% 0.17%
Construction in process 4883219.33 0.04% 7265104.44 0.05% -0.01%
Use right assets 13754144.30 0.10% 15683121.04 0.12% -0.02%
Short-term loans 1210526332.23 9.23% 1663696422.48 12.27% -3.04%
Contract liabilities 257088867.81 1.96% 268594041.26 1.98% -0.02%
Long-term loans 1325000000.00 10.10% 1137000000.00 8.39% 1.71%
Lease liabilities 8538021.61 0.07% 10652607.48 0.08% -0.01%
Intangible assets 84772216.52 0.65% 124052394.79 0.92% -0.27%
Employees' wage payable 35101505.56 0.27% 76243647.97 0.56% -0.29%
Non-current liabilities due
370920660.142.83%131374661.050.97%1.86%
in 1 year
Other current liabilities 73433099.23 0.56% 50835559.67 0.38% 0.18%
Deferred earning 27481194.67 0.21% 10669612.13 0.08% 0.13%
2. Major foreign assets
□ Applicable□ Inapplicable
3. Assets and liabilities measured at fair value
□ Applicable □ Inapplicable
In RMB
Item Opening Gain/loss Accumulati Impair Amount Amount sold in Other Closing
27Interim Report 2025 of China Fangda Group Co. Ltd.
amount caused by ve changes ment purchased the period chang amount
changes in fair provide in the e
in fair value d in the period
value accounting period
into the
income
account
Financial assets
1. Transactional
financial assets
(excluding 0.00 0.00
derivative
financial assets)
2. Derivative
0.0077600.00
financial assets
3. Other non-
6523233.7
current 6519740.17 3493.56
3
financial assets
4. Receivable
4568000.10387988.26
financing
11087740.26988821.9
Subtotal 3493.56 0.00 0.00 0.00 0.00 0.00
79
Investment real 583503609 21630650 58258271
52783.319261764.55
estate 8.20 0.95 16.96
5846123832163065058328159
Total 56276.87 0.00 0.00 9261764.55 0.00
8.470.9538.95
Financial
1520625.000.00
liabilities
Major changes in the assets measurement property of the Company in the report period
□ Yes□ No
4. Right restriction of assets at the end of the period
Project Book value on June 30 2025 (RMB) Reason
Monetary capital 351421548.82 Various deposits
Notes receivable 55952616.30 Bills endorsed or discounted but not yet due
Account receivable 18571850.64 Loan by pledge
Fixed assets 407640671.99 Loan by pledge
Investment real estate 3469098906.24 Loan by pledge
Intangible assets 22970667.15 Loan by pledge
Equity pledge 200000000.00 100% stake in Fangda Property Developmentheld by the Company
Total 4525656261.14
VII. Investment
1. General situation
□ Applicable□ Inapplicable
28Interim Report 2025 of China Fangda Group Co. Ltd.
2. Major equity investment in the report period
□ Applicable□ Inapplicable
3. Major non-equity investment in the report period
□ Applicable□ Inapplicable
4. Financial assets investment
(1) Securities investment
□ Applicable□ Inapplicable
The Company made no investment in securities in the report period
2. Derivative investment
□ Applicable □ Inapplicable
1) Derivative investments for hedging purposes during the reporting period
□ Applicable □ Inapplicable
In RMB10000
Proportion
Accumulati
of closing
Gain/loss ve changes
investment
caused in fair
Initial Amount amount in
Opening by value Amount in Closing
Type investment sold in this the closing
amount changes accounting this period amount
amount period net assets
in fair into the
in the
value income
report
account
period
Shanghai
4608.454608.45159.827.761201.035652.84156.640.03%
aluminum
Total 4608.45 4608.45 159.82 7.76 1201.03 5652.84 156.64 0.03%
Accounting
policies and
specific
accounting
principles of
hedging
business during
The Company's aluminum futures business meets the conditions for hedge accounting as stipulated by
the reporting
accounting standards and is classified as a cash flow hedge. The corresponding accounting policies and
period as well
accounting principles have not changed from the previous reporting period.as whether
there are
significant
changes
compared with
the previous
reporting period
Description of During the reporting period the actual return from the total value change of aluminum futures hedging
29Interim Report 2025 of China Fangda Group Co. Ltd.
actual profit instruments and hedged aluminum ingot spot was RMB-11600.and loss during
the reporting
period
Description of The profit and loss generated by the company's hedging instrument can offset the value change of the hedged
hedging effect item and the hedging effect of the hedging business is good.Capital source Self-owned fund
Risk analysis
and control
measures for
the derivative The aluminum futures hedging business conducted by the Company adheres to the basic principle of locking in
holding in the raw material prices avoiding speculative trading operations and implementing strict risk control when signing
report period hedging contracts and closing positions. The Company has established and implemented the "Derivatives
(including Investment Business Management Measures" and "Commodity Futures Hedging Business Internal Control and
without Risk Management System". It has made clear regulations on the approval authority business management risk
limitation management information disclosure and file management of derivatives trading business which can
market effectively control the risk of the Company's derivatives holding positions.liquidity credit
operation and
legal risks)
Changes in the
market price or
fair value of the
derivative in
the report
period the
analysis of the
Fair value of derivatives are measured at open prices in the open market
derivative's fair
value should
disclose the
method used
and related
assumptions
and parameters.Lawsuit
None
involved
Disclosure date
of derivative
investment
October 29 2024
approval by the
Board of
Directors
2) Derivative investment for the purpose of speculation during the reporting period
□ Applicable□ Inapplicable
During the reporting period there was no derivative investment for the purpose of speculation.
5. Use of raised capital
□ Applicable□ Inapplicable
The Company used no raised capital in the report period.
30Interim Report 2025 of China Fangda Group Co. Ltd.
VIII. 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
IX. 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
Main Registered Operation
Company Type Total assets Net assets Turnover Net profit
business capital profit
Curtain
--
Fangda Subsidiarie wall system 60000000 50971097 18054408 11106438
36633052.22955727.
Jianke s and 0.00 25.24 83.23 41.18
6835
materials
Curtain
Fangda
Subsidiarie wall system 10000000 29658938 12269883 11338030 6404083.3 5980125.1
Shanghai
s and 0.00 4.92 2.17 5.99 6 8
Zhijian
materials
Subway
Fangda Subsidiarie 10500000 97921883 39517711 31692349 59702466. 50882142.screen door
Zhiyuan s 0.00 4.10 7.67 9.00 56 83
and service
Fangda Subsidiarie Real estate 20000000 56293833 26329049 39768253. 7791827.6 5351018.3
Property s sales 0.00 00.77 66.76 97 5 5
Fangda
Property
Property Subsidiarie 10000000. 88133453. 68633772. 36066478. 14760059. 10959138.Manageme
Manageme s 00 03 29 84 22 80
nt Service
nt
Acquisition and disposal of subsidiaries in the report period
□ Applicable□ Inapplicable
Major joint-stock companies
During this reporting period Fangda Jianke Company's operating revenue was RMB1110643841.18 with main business
revenue of RMB1105425060.32 and an operating profit of RMB-36633052.68 with main business profit of RMB-
35290314.66. Shanghai Zhijian Company reported operating revenue of RMB113380305.99 main business revenue of
RMB101031142.90 and an operating profit of RMB6404083.36 with main business profit of RMB5556887.34. Zhiyuan
Technology Company had operating revenue of RMB316923499.00 with main business revenue of RMB310463389.65 and an
operating profit of RMB59702466.56 with main business profit of RMB59454538.96. Fangda Real Estate Company's operating
revenue was RMB39768253.97 with main business revenue of RMB39737214.67 and an operating profit of
RMB7791827.65 with main business profit of RMB7760788.35. Fangda Property Company's operating revenue was
RMB36066478.84 with main business revenue of RMB36058148.70 and an operating profit of RMB14760059.22 with main
business profit of RMB14751729.08.
31Interim Report 2025 of China Fangda Group Co. Ltd.
X. Structural Entities Controlled by the Company
□ Applicable□ Inapplicable
XI. Risks Faced by the Company and Countermeasures
1. Risks of macro environment and policy changes
The Company's main business segments are closely related to macroeconomic and industrial policies and are greatly affected
by the overall macro environment. The Company is actively expanding its global market. If adverse changes occur in the future
international and domestic macroeconomic environment such as slow economic development and reduced fixed asset investment
affecting demand in the public building curtain wall industry and rail transit equipment industry or if the Company faces industry
downturns or excessive competition it will adversely impact the Company's future profitability and thus affect its operating
performance.To better respond to the opportunities and challenges brought by changes in the economic environment and policies the
Company will closely monitor changes in domestic and international macroeconomic and policy situations adjusting its business
strategies in a timely manner. Simultaneously the Company is actively exploring the application of artificial intelligence (AI) in
management and business operations to empower high-quality development in management and industry increase market share
and mitigate risks from macroeconomic and policy changes.
2. Market competition risks
In the rail transit PSD market the technology of other domestic manufacturers is becoming more and more mature and the
company may face the risk of intensified market competition. If the Company cannot maintain a leading position in the market it
will have a certain adverse impact on the development and benefits of the Company's rail transit PSD business. In this regard the
Company will continue to adopt a stable business policy improve the competitive advantage of products through technological
innovation and fine management accelerate the return of funds and improve the operation efficiency and market competitiveness
of the Company.The Company will closely track industry development trends and technological updates enhancing product competitiveness
through technological innovation and refined management and accelerating the recovery of funds. By leveraging industry-
university-research cooperation the Company will jointly conduct cutting-edge technology research and product development
accelerating the transformation of scientific and technological achievements and pursuing high-quality growth with high
technology and high efficiency. While consolidating the domestic market the Company will intensify efforts to expand the
international market solidifying the dual-cycle development pattern of domestic and international markets.
3. Production and operation risks
The macro-economy and market demand have added to the fluctuation in prices of main raw materials and labor affecting the
Company’s profitability and creating additional production and operation risks for the Company.The Company will use futures products for hedging negotiate with partners to increase contract amounts and reasonably
arrange material procurement plans to hedge and transfer some of the raw material price fluctuation risks. The Company
implements a strict supplier management mechanism actively enhances the technological level of production management
increases efforts in technological research and development focuses on process improvements and aims to increase the
automation and intelligence of production equipment to reduce raw material wastage. The Company will continue to promote
intelligent and digital construction system widely apply new technologies and processes strengthen staff skill training and
improve quality and efficiency on the basis of ensuring safety.
4.Management Risks
In recent years with the expansion of the Company's business scale and the increase of the number of subsidiaries the daily
management of the company is becoming more and more difficult which may face the management risk of industrial scale
expansion. In addition in recent years the regulatory requirements for listed companies have been continuously improved and
32Interim Report 2025 of China Fangda Group Co. Ltd.
deepened. The Company needs to further strengthen management continue to promote management reform constantly optimize
process and organizational structure improve various rules and regulations and vigorously introduce high-quality highly skilled
and multidisciplinary technology and management talents gradually optimize the allocation of human resources optimize the
echelon structure and effectively reduce the management risks brought by business development.XII. Implementation Status of Market Value Management System and Valuation
Enhancement Plan
Has the Company formulated a market value management system
□ Yes□ No
Has the Company disclosed a valuation enhancement plan
□ Yes □ No
On April 22 2025 the Company disclosed the "China Fangda Group Co. Ltd. Valuation Enhancement Plan" on
cninfo.com.cn (http://www.cninfo.com.cn) detailing the triggering circumstances and procedures for formulating the valuation
enhancement plan and introducing specific measures taken by the Company to enhance valuation. This plan is closely aligned
with the Company's actual situation and development strategy helping to improve the Company's operating quality and investment
value enhance investor returns and promote the Company's long-term stable development.XIII. Implementation of the Action Plan for "Double Improvement of Quality and Return"
Has the Company disclosed the announcement of the "Quality and Return Double Enhancement" action plan
□ Yes□ No
Chapter IV Corporate Governance Environment and Society
I. Changes in the Directors Supervisors and Senior Executives
□ Applicable □ Inapplicable
Name Job Type Date Reason
Supervisory
No longer serving as a supervisor due to the
Committee Resigne
Cao Naisi 12 May 2025 cancellation of the Supervisory Committee by the
meeting d
Company
convener
No longer serving as a supervisor due to the
Fan Resigne
Supervisor 12 May 2025 cancellation of the Supervisory Committee by the
Xiaodong d
Company
No longer serving as a supervisor due to the
Xi Resigne
Supervisor 12 May 2025 cancellation of the Supervisory Committee by the
Yingzhe d
Company
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.
33Interim Report 2025 of China Fangda Group Co. Ltd.
III. 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
IV. Disclosure of Environmental Information
Whether the listed company and its major subsidiaries are included in the list of enterprises required by law to disclose
environmental information
□ Yes□ No
V. Social Responsibility
While creating economic value the Company places a high emphasis on sustainable development of the environment and
society actively fulfilling its corporate social responsibilities. It has proactively published a social responsibility report for seven
consecutive years. By setting a positive example in areas such as ecological environmental protection and promoting social
development the Company demonstrates its sense of corporate responsibility. The Company has carried out industrial support in
Guangdong Shaanxi Guizhou Jiangxi and Tibet helping rural areas to plant cash crops such as tea mushrooms and lilies
according to local conditions supporting rural collective breeding industry projects constructing greenhouse photovoltaic power
stations distributed photovoltaic power stations and other rural industrial "blood-creation" projects and fostering new impetus to
the development of rural economy helping to build a thriving industry and ecological development. Helping to build a beautiful
countryside in the new era of prosperous industry ecological livability civilized countryside effective governance and affluent
life which has achieved good social effects and gained high praise from all walks of life.Additionally the Company actively participates in various public welfare activities covering areas such as educational
support public health rural medical aid disaster relief environmental protection and rural revitalization thereby practicing
corporate social responsibility and contributing to building a harmonious society and promoting social progress. For several
consecutive years the Company has been honored with titles such as "Outstanding Enterprise in Fulfilling Social Responsibility."
34Interim Report 2025 of China Fangda Group Co. Ltd.
Chapter V Significant Events
I. Commitments that Have Been Fulfilled and Not Fulfilled by Actual Controller
Shareholders Related Parties Acquirers of the Company
□ Applicable□ Inapplicable
There is no commitment that has not been fulfilled by actual controller shareholders related parties acquirers of the Company
II. Non-operating Capital Use by the Controlling Shareholder or Related Parties in the
Reporting Term
□ Applicable□ Inapplicable
The controlling shareholder and its affiliates occupied no capital for non-operating purpose of the Company during the report
period.III. Incompliant External Guarantee
□ Applicable□ Inapplicable
The Company made no incompliant external guarantee in the report period.IV. Engaging and Dismissing of CPA
Whether 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
the Current 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. Lawsuit
Significant lawsuit and arbitration
□ Applicable□ Inapplicable
The Company has no significant lawsuit or arbitration affair in the report period.
35Interim Report 2025 of China Fangda Group Co. Ltd.
Other lawsuit
□ Applicable □ Inapplicable
Index
Whether for
Enforcement Date
Basic information Amount (in estimated Progress of infor
Litigation (arbitration) of litigation of
of litigation RMB1000 liabilities litigation matio
hearing results and impact (arbitration) disclo
(arbitration) 0) are (arbitration) n
judgment sure
formed discl
osure
Summary of Some cases are under trial
matters in which and are not expected to have
the subsidiaries as a significant impact on the
Some cases
the plaintiff fail to Filing trial Company's operations and
are in the
meet the 44953.75 No or execution financial condition; some
execution
disclosure phases judgments have taken effect
phase
standards of with the final actual impact
major litigation dependent on the execution
(arbitration) results.Summary of
matters where the
Company and its
The case has not been closed
subsidiaries as
yet and it is not expected to
defendants fail to Under trial or
5791.51 No have a significant impact on Inapplicable
meet the arbitration
the company's operation and
disclosure
financial status
standards of
major litigation
(arbitration)
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
The Company and its controlling shareholders and actual controllers do not fail to perform the effective judgment of the court and
the debts with a large amount are not paid off when due.XI. Material Related Transactions
1. Related transactions related to routine operation
□ Applicable□ Inapplicable
The Company made no related transaction related to daily operating in the report period.
2. Related transactions related to assets transactions
□ Applicable□ Inapplicable
The Company made no related transaction of assets or equity requisition and sales in the report period.
36Interim Report 2025 of China Fangda Group Co. Ltd.
3. Related transactions related to joint external investment
□ Applicable□ Inapplicable
The Company made no related transaction of joint external investment in the report period.
4. Related credits and debts
□ Applicable□ Inapplicable
The Company had no related debt in the report period.
5. Transactions with related financial companies
□ Applicable□ Inapplicable
There is no deposit loan credit or other financial business between the company and the related financial company.
6. Transactions between financial companies controlled by the company and related parties
□ Applicable□ Inapplicable
There is no deposit loan credit or other financial business between the financial company controlled by the company and its
related parties.
7. Other major related transactions
□ Applicable□ Inapplicable
The Company has no other significant related transaction in the report period.XII. Significant Contracts and Performance
1. Asset entrusting leasing contracting
(1) Asset entrusting
□ Applicable□ Inapplicable
The Company made no custody in the report period.
(2) Contracting
□ Applicable□ Inapplicable
The Company made no contract in the report period
(3) Leasing
□ Applicable□ Inapplicable
There are no significant leasing situations during the reporting period.
2. Significant guarantee
□ Applicable □ Inapplicable
37Interim Report 2025 of China Fangda Group Co. Ltd.
In RMB10000
External guarantees made by the Company and subsidiaries (exclude those made for subsidiaries)
Actual
Guarant
Date of Guarante amount Type of Counter
ee Actual Collatera Complet Related
disclosur e of guarante guarante Term
provided date l (if any) ed or not party
e amount guarante e e (if any)
to
e
None
Guarantee provided to subsidiaries
Actual
Guarant
Date of Guarante amount Type of Counter
ee Actual Collatera Complet Related
disclosur e of guarante guarante Term
provided date l (if any) ed or not party
e amount guarante e e (if any)
to
e
since
engage
Joint and of
several contract
Fangda April 2 January 54169.8
103000 liability None None to 3 No Yes
Jianke 2024 17 2025 4
guarante years
e upon
due of
debt
since
engage
Joint and of
several contract
Fangda April 2 21 April 23089.0
35000 liability None None to 3 No Yes
Jianke 2024 2025 2
guarante years
e upon
due of
debt
since
engage
Joint and of
Novemb several contract
Fangda April 2 15299.3
30000 er 11 liability None None to 3 No Yes
Jianke 2024 4
2024 guarante years
e upon
due of
debt
since
engage
Joint and of
Septemb several contract
Fangda April 2 20659.4
50000 er 4 liability None None to 3 No Yes
Jianke 2024 5
2024 guarante years
e upon
due of
debt
since
Joint and
engage
several
Fangda April 2 January of
25000 10500 liability None None No Yes
Jianke 2024 10 2025 contract
guarante
to 3
e
years
38Interim Report 2025 of China Fangda Group Co. Ltd.
upon
due of
debt
since
engage
Joint and of
several contract
Fangda April 2 January 16583.2
39000 liability None None to 3 No Yes
Jianke 2024 14 2025 1
guarante years
e upon
due of
debt
since
engage
Joint and of
several contract
Fangda April 2 11 May
15000 6000 liability None None to 3 No Yes
Jianke 2024 2024
guarante years
e upon
due of
debt
since
engage
Joint and of
Decemb several contract
Fangda April 2 28278.8
48000 er 15 liability None None to 3 No Yes
Jianke 2024 3
2024 guarante years
e upon
due of
debt
since
engage
Joint and of
Decemb several contract
Fangda April 2
60000 er 19 59800 liability None None to 3 No Yes
Jianke 2024
2024 guarante years
e upon
due of
debt
since
engage
Joint and of
several contract
Fangda February August
11400 3434.42 liability None None to 3 No Yes
Jianke 28 2023 16 2023
guarante years
e upon
due of
debt
since
engage
Joint and of
Novemb several contract
Fangda April 2
20000 er 4 9750.25 liability None None to 3 No Yes
Jianke 2024
2024 guarante years
e upon
due of
debt
39Interim Report 2025 of China Fangda Group Co. Ltd.
since
engage
Joint and of
several contract
Fangda 22 April 28 April
4900 4900 liability None None to 3 No Yes
Jianke 2025 2025
guarante years
e upon
due of
debt
since
engage
Joint and of
several contract
Fangda April 2 27 June
60000 19058 liability None None to 3 No Yes
Jianke 2024 2024
guarante years
e upon
due of
debt
since
engage
Joint and of
27 several contract
Fangda April 2
30000 March liability None None to 3 No Yes
Jianke 2024
2025 guarante years
e upon
due of
debt
since
engage
Joint and of
Decemb several contract
Fangda April 2
20000 er 27 2800 liability None None to 3 No Yes
Jianke 2024
2024 guarante years
e upon
due of
debt
since
engage
Joint and of
several contract
Fangda 22 April 19 June
35800 20901.6 liability None None to 3 No Yes
Zhiyuan 2025 2025
guarante years
e upon
due of
debt
since
engage
Joint and of
several contract
Fangda April 2 21 April
20000 4589.97 liability None None to 3 No Yes
Zhiyuan 2024 2025
guarante years
e upon
due of
debt
Joint and since
Novemb
Fangda April 2 several engage
20000 er 11 3647.51 None None No Yes
Zhiyuan 2024 liability of
2024
guarante contract
40Interim Report 2025 of China Fangda Group Co. Ltd.
e to 3
years
upon
due of
debt
since
engage
Joint and of
Septemb several contract
Fangda April 2
15000 er 4 8861.39 liability None None to 3 No Yes
Zhiyuan 2024
2024 guarante years
e upon
due of
debt
since
engage
Joint and of
several contract
Fangda April 2 11 May
10000 572.75 liability None None to 3 No Yes
Zhiyuan 2024 2024
guarante years
e upon
due of
debt
since
engage
Joint and of
Decemb several contract
Fangda April 2
18000 er 15 844.23 liability None None to 3 No Yes
Zhiyuan 2024
2024 guarante years
e upon
due of
debt
since
engage
Joint and of
Novemb several contract
Fangda February
15550 er 21 9859.4 liability None None to 3 No Yes
Zhiyuan 28 2023
2023 guarante years
e upon
due of
debt
since
engage
Joint and of
several contract
Fangda April 2 January
15000 430.57 liability None None to 3 No Yes
Zhiyuan 2024 13 2025
guarante years
e upon
due of
debt
since
engage
Joint and
of
several
Fangda April 2 21 April contract
700 24.12 liability None None No Yes
Yunzhu 2024 2025 to 3
guarante
years
e
upon
due of
41Interim Report 2025 of China Fangda Group Co. Ltd.
debt
since
engage
Joint and of
25 several contract
Fangda April 2
1000 March 600 liability None None to 3 No Yes
Yunzhu 2024
2025 guarante years
e upon
due of
debt
since
engage
Joint and of
Fangda 27 several contract
April 2
New 8500 February 1931.21 liability None None to 3 No Yes
2024
Material 2025 guarante years
e upon
due of
debt
since
engage
Joint and of
Decemb several contract
Fangda 02 April
er 23 110000 110000 liability None None to 3 No Yes
Property 2025
2023 guarante years
e upon
due of
debt
since
engage
Joint and of
several contract
Fangda 22 April 30 June
7000 3737.77 liability None None to 3 No Yes
Zhijian 2025 2025
guarante years
e upon
due of
debt
since
engage
Fangda Joint and of
Intellige Decemb 22 several contract
nt er 23 30000 February 29000 liability None None to 3 No Yes
Manufac 2023 2024 guarante years
turing e upon
due of
debt
From the
date the
letter of
Joint and guarante
Decemb 17 several e is
Fangda 31896.0 31896.0
er 23 February liability None None issued No Yes
Zhiyuan 2 2
2023 2024 guarante until the
e completi
on of the
project
contract
42Interim Report 2025 of China Fangda Group Co. Ltd.
From the
date the
letter of
Joint and guarante
Decemb 17 several e is
Fangda 24885.1 24885.1
er 23 February liability None None issued No Yes
Zhiyuan 6 6
2023 2024 guarante until the
e completi
on of the
project
contract
Total of guarantee to Total of guarantee to
subsidiaries subsidiaries actually
434900.00299272.30
approved in the occurred in the
report term (B1) report term (B2)
Total of balance of
Total of guarantee to guarantee actually
subsidiaries provided to the
914631.18526104.06
approved as of the subsidiaries as of
report term (B3) end of report term
(B4)
Guarantee provided to subsidiaries
Actual
Guarant
Date of Guarante amount Type of Counter
ee Actual Collatera Complet Related
disclosur e of guarante guarante Term
provided date l (if any) ed or not party
e amount guarante e e (if any)
to
e
None
Total of guarantee provided by the Company (total of the above three)
Total of guarantee Total of guarantee
approved in the occurred in the
434900.00299272.30
report term report term
(A1+B1+C1) (A2+B2+C2)
Total of guarantee Total of guarantee
approved as of end occurred as of the
914631.18526104.06
of report term end of report term
(A3+B3+C3) (A4+B4+C4)
Percentage of the total guarantee occurred
86.37%
(A4+B4+C4) on net asset of the Company
Including:
Guarantees provided to the shareholders
substantial controllers and the related parties 0.00
(D)
Guarantee provided directly or indirectly to
objects with over 70% of liability on asset 29000.00
ratio (E)
Amount of guarantee over 50% of the net
221541.12
asset (F)
Total of the above 3 (D+E+F) 221541.12
For the unexpired guarantee contract the
guarantee liability has occurred during the None
reporting period or there is evidence that it is
possible to bear joint and several repayment
43Interim Report 2025 of China Fangda Group Co. Ltd.
liability (if any)
Statement of external guarantees violating
None
the procedure (if any)
Details of composite guarantees: (1) The bank issued a long-term loan of RMB1.1 billion to the subsidiary Fangda Real Estate
Company. The Company provided a guarantee of RMB1.1 billion with 100% equity pledge of Fangda Real Estate Company and a
mortgage on part of the properties in Fangda City as well as a pledge of receivable rents; (2) The bank issued a long-term loan of
RMB300 million to the subsidiary Fangda Intelligent Manufacturing Company. The Company provided a guarantee of RMB300
million and Fangda Intelligent Manufacturing Company provided a mortgage on its fixed assets and industrial land.The Company's new guarantees for subsidiaries in the second quarter of 2025 are as follows:
No. Guarantor Creditor Guarantee Amount(RMB10000) Actual date Guarantee Details
1 China Fangda
Postal Savings Bank of China
Group Co. Ltd. Co. Ltd. Shenzhen Bao'an 110000.00 April 02 2025 Subsidiary-specific creditDistrict Branch
2 China Fangda Industrial Bank Co. Ltd.Group Co. Ltd. Shenzhen Branch 35000.00 April 21 2025 Subsidiary annual credit
3 China Fangda Industrial Bank Co. Ltd.Group Co. Ltd. Shenzhen Branch 700.00 April 21 2025 Subsidiary annual credit
4 China Fangda Industrial Bank Co. Ltd.Group Co. Ltd. Shenzhen Branch 20000.00 April 21 2025 Subsidiary annual credit
5 China Fangda
Shenzhen High-tech
Group Co. Ltd. Investment Microfinance 4900.00 April 28 2025 Subsidiary annual creditCo. Ltd.China Fangda China Construction Bank6 Group Co. Ltd. Corporation Shenzhen 35800.00 June 19 2025 Subsidiary annual creditBranch
7 China Fangda Bank of Shanghai Co. Ltd.Group Co. Ltd. Songjiang Branch 7000.00 June 30 2025 Subsidiary annual credit
3. Entrusted wealth management
□ Applicable □ Inapplicable
In RMB10000
Accrued
impairment
Due balance to be amount of overdue
Type Source of fund Amount Undue balance
recovered unrecovered
financial
management
Bank financial
Self-owned fund 800.00 0.00 0.00 0.00
products
Total 800.00 0.00 0.00 0.00
Details of high-risk entrusted financial management with significant single amount or low security and poor liquidity
□ Applicable□ Inapplicable
Entrusted financial management expected to fail to recover the principal or likely result in impairment
□ Applicable□ Inapplicable
4. Other significant contract
□ Applicable□ Inapplicable
The Company entered into no other significant contract in the report.
44Interim Report 2025 of China Fangda Group Co. Ltd.
13. Other Material Events
□ Applicable□ Inapplicable
There are no other significant matters requiring explanation during the reporting period.XIV. Material Events of Subsidiaries
□ Applicable□ Inapplicable
45Interim Report 2025 of China Fangda Group Co. Ltd.
Chapter VI Changes in Share Capital and Shareholders
I. Changes in Shares
1. Changes in shares
In share
Before the change Change (+-) After the change
Issue
Bon
d Transfer
Proportio us Proportio
Quantity new red from Others Subtotal Quantity
n share n
share reserves
s
s
I. Shares
with trade
38610430.36%2200220038632430.36%
restriction
conditions
1. State-
owned
shares
2. State-
owned
legal
person
shares
3. Other
domestic 3861043 0.36% 2200 2200 3863243 0.36%
shares
Includ
ing: Shares
held by
domestic
legal
persons
Dome
stic natural
38610430.36%2200220038632430.36%
person
shares
4. Shares
held by
foreign
investors
Includ
ing: Shares
held by
foreign
legal
persons
Dome
stic natural
46Interim Report 2025 of China Fangda Group Co. Ltd.
person
shares
II.Unrestricte 1070013184 99.64% -2200 -2200 1070010984 99.64%
d shares
1.
Common
67585442962.94%-2200-220067585222962.94%
shares in
RMB
2.
Foreign
shares in 394158755 36.70% 394158755 36.70%
domestic
market
3.
Foreign
shares in
overseas
market
4. Others
III. Total of
capital 1073874227 100.00% 0 0 1073874227 100.00%
shares
Reasons
□ Applicable□ Inapplicable
Approval of the change
□ Applicable□ Inapplicable
Share transfer
□ Applicable□ Inapplicable
Progress in the implementation of share repurchase
□ Applicable□ Inapplicable
Progress in the implementation of the reduction of shareholding shares by means of centralized bidding
□ Applicable□ Inapplicable
Impacts on financial indicators including basic and diluted earnings per share net assets per share attributable to common
shareholders 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
In share
Conditional Conditiona
Sharehold shares at Released Increased this l shares at
Reason of condition Date of releasing
er name beginning of this period period end of the
the period period
47Interim Report 2025 of China Fangda Group Co. Ltd.
Executed in accordance
with the "Guidelines for
Self-regulatory
He no longer serves as a
Supervision of Listed
supervisor due to the
Fan Companies on the
6600 0 2200 8800 cancellation of the
Xiaodong Shenzhen Stock
Supervisory Committee
Exchange No. 10 -
by the Company.Management of Share
Changes."
Total 6600 0 2200 8800 -- --
II. Share Placing and Listing
□ Applicable□ Inapplicable
III. Shareholders and Shareholding
In share
Number of shareholders Number of shareholders of preferred stocks
of common shares at the 45179 of which voting rights recovered in the 0
end of the report period report period
Shareholdings of shareholders holding more than 5% or the top 10 shareholders (excluding shares lent through refinancing)
Number of Pledge marking or
Sharehol Change in Amount of
shares held at freezing
Name of Nature of ding the Conditional shares
the end of the
shareholder shareholder percentag reporting shares without sales
reporting Share
e period restriction Quantity
period status
Shenzhen
Banglin Domestic
Technologi non-state Inapplicab
11.11%119332846001193328460
es legal le
Developme person
nt Co. Ltd.Shengjiu Foreign
Inapplicab
Investment legal 10.41% 111809265 1692989 0 111809265 0
le
Ltd. person
Domestic
Inapplicab
Fang Wei natural 4.76% 51083339 417900 0 51083339 0
le
person
Domestic
Zhou Inapplicab
natural 0.92% 9909210 -15000 0 9909210 0
Youming le
person
Domestic
Inapplicab
Xu Lei natural 0.84% 9010000 2690000 0 9010000 0
le
person
Domestic
Inapplicab
Xu Zhe natural 0.72% 7712000 952000 0 7712000 0
le
person
Domestic
Inapplicab
Lin Xiang natural 0.61% 6600000 6600000 0 6600000 0
le
person
Domestic Inapplicab
Wu Jilin 0.61% 6517025 6517025 0 6517025 0
natural le
48Interim Report 2025 of China Fangda Group Co. Ltd.
person
Shenwan
Hongyuan
Foreign
Securities Inapplicab
legal 0.51% 5470550 0 0 5470550 0
(Hong le
person
Kong) Co.Ltd.Domestic
Xiong Inapplicab
natural 0.48% 5110257 0 3832693 1277564 0
Jianming le
person
A strategic investor or
ordinary legal person
becomes the Top10 None
shareholder due a stock
issue.Notes to top ten Among the above shareholders Shenzhen Banglin Technology Development Co. Ltd. Shengjiu
shareholder relationship Investment Co. Ltd. and Xiong Jianming are acting in concert. The Company is not notified of
or "action in concert" other action-in-concert or related parties among the other holders.Description of the above
shareholders involved in
entrusted / entrusted None
voting right and waiver of
voting right
Special instructions on the
existence of special
None
repurchase account among
the top 10 shareholders
Shareholding status of the top 10 shareholders without sales restrictions (excluding shares lent through refinancing senior
management locked shares)
Category of shares
Name of shareholder Amount of shares without sales restriction Category
Quantity
of shares
Shenzhen Banglin RMB
119332
Technologies 119332846 common
846
Development Co. Ltd. shares
Domestica
lly listed 111809
Shengjiu Investment Ltd. 111809265
foreign 265
shares
RMB
510833
Fang Wei 51083339 common
39
shares
RMB
990921
Zhou Youming 9909210 common
0
shares
RMB
901000
Xu Lei 9010000 common
0
shares
RMB
771200
Xu Zhe 7712000 common
0
shares
RMB
660000
Lin Xiang 6600000 common
0
shares
Wu Jilin 6517025 RMB 651702
49Interim Report 2025 of China Fangda Group Co. Ltd.
common 5
shares
Domestica
Shenwan Hongyuan
lly listed 547055
Securities (Hong Kong) 5470550
foreign 0
Co. Ltd.shares
RMB
485500
Zhuang Liangjin 4855000 common
0
shares
Explanation of the
relationship or acting in
concert among the top 10
shareholders without sales Among the above shareholders Shenzhen Banglin Technology Development Co. Ltd. Shengjiu
restrictions and between Investment Co. Ltd. and Xiong Jianming are acting in concert. The Company is not notified of
the top 10 shareholders other action-in-concert or related parties among the other holders.without sales restrictions
and the top 10
shareholders
Fang Wei holds 51083339 shares of the Company through a customer credit transaction guarantee
securities account with CITIC Securities Co. Ltd.;
Xu Lei holds 4900000 shares of the Company through a customer credit transaction guarantee
securities account with Guolian Securities Co. Ltd.;
Top-10 common share Xu Zhe holds 4710000 shares of the Company through a customer credit transaction guarantee
shareholders participating securities account with Guolian Securities Co. Ltd.;
in margin trade Wu Jilin holds 6517025 shares of the Company through a customer credit transaction guarantee
securities account with China International Capital Corporation Wealth Management Securities Co.Ltd.;
Zhuang Liangjin holds 4855000 shares of the Company through a customer credit transaction
guarantee securities account with Great Wall Securities Co. Ltd.Situation of share lending in refinancing business by shareholders holding more than 5% the top 10 shareholders and the top 10
shareholders of unrestricted circulating shares
□ Applicable□ Inapplicable
Changes due to lending/returning of shares in refinancing business by the top 10 shareholders and the top 10 shareholders of
unrestricted circulating shares compared to the previous period
□ Applicable□ Inapplicable
Agreed re-purchasing by the Company's top 10 shareholders of common shares and top 10 shareholders of unconditional common
shares 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
common shares in the report period
IV. Changes in Shareholding of Directors and Senior Management
□ Applicable□ Inapplicable
The Company's Directors and senior management shareholding has remained unchanged during the report period. For details
please refer to the 2024 annual report.V. Changes in Controlling Shareholder or Actual Controller
Changes in the controlling shareholder in the reporting period
□ Applicable□ Inapplicable
No change in the controlling shareholder in the report period
50Interim Report 2025 of China Fangda Group Co. Ltd.
Change in the actual controller in the report period
□ Applicable□ Inapplicable
No change in the actual shareholder in the report period
51Interim Report 2025 of China Fangda Group Co. Ltd.
VI. Preferred Shares
□ Applicable□ Inapplicable
The Company had no preferred share in the report period.
52Interim Report 2025 of China Fangda Group Co. Ltd.
Chapter VII Information about the Company's Securities
□ Applicable□ Inapplicable
53Interim Report 2025 of China Fangda Group Co. Ltd.
Chapter VIII Financial Statements
I. Auditor's Report
Whether the interim report is audited
□ Yes□ No
The financial statements for H1 2014 have not been audited.II. Financial Statements
Unit for statements in notes to financial statements: RMB yuan
1. Consolidated Balance Sheet
Prepared by: China Fangda Group Co. Ltd.
30 June 2025
In RMB
Item Closing balance Opening balance
Current asset:
Monetary capital 1111019576.80 1491777341.84
Settlement provision
Outgoing call loan
Transactional financial assets
Derivative financial assets 77600.00
Notes receivable 76607851.56 73887694.24
Account receivable 963449533.00 1123506196.98
Receivable financing 387988.26 4568000.10
Prepayment 30675952.37 23355036.11
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other receivables 159021678.10 168322524.80
Including: interest receivable
Dividend receivable
Repurchasing of financial assets
Inventory 745574640.16 705666408.74
Among them: data resources
Contract assets 2281362840.37 2247698479.96
Assets held for sales
Non-current assets due in 1 year
Other current assets 335210547.69 307777143.14
Total current assets 5703388208.31 6146558825.91
54Interim Report 2025 of China Fangda Group Co. Ltd.
Non-current assets:
Loan and advancement provided
Debt investment
Other debt investment
Long-term receivables
Long-term share equity investment 56655809.72 56690973.97
Investment in other equity tools
Other non-current financial assets 6523233.73 6519740.17
Investment real estate 5825827116.96 5835036098.20
Fixed assets 932515821.46 940894344.39
Construction in process 4883219.33 7265104.44
Productive biological assets
Gas & petrol
Use right assets 13754144.30 15683121.04
Intangible assets 84772216.52 124052394.79
Among them: data resources
R&D expense
Among them: data resources
Goodwill
Long-term amortizable expenses 7266036.25 4041025.70
Deferred income tax assets 224341239.43 205986926.71
Other non-current assets 257954632.36 212658669.89
Total of non-current assets 7414493470.06 7408828399.30
Total of assets 13117881678.37 13555387225.21
Current liabilities
Short-term loans 1210526332.23 1663696422.48
Loans from Central Bank
Call loan received
Transactional financial liabilities
Derivative financial liabilities 1520625.00
Notes payable 603861371.35 681188127.97
Account payable 1873559610.98 2146594890.57
Prepayment received 3669703.07 1513398.39
Contract liabilities 257088867.81 268594041.26
Selling of repurchased financial assets
Deposit received and held for others
Entrusted trading of securities
Entrusted selling of securities
Employees' wage payable 35101505.56 76243647.97
Taxes payable 43963840.71 48847117.19
Other payables 120776692.65 120918002.02
Including: interest payable
55Interim Report 2025 of China Fangda Group Co. Ltd.
Dividend payable
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liabilities due in 1 year 370920660.14 131374661.05
Other current liabilities 73433099.23 50835559.67
Total current liabilities 4592901683.73 5191326493.57
Non-current liabilities:
Insurance contract provision
Long-term loans 1325000000.00 1137000000.00
Bond payable
Including: preferred stock
Perpetual bond
Lease liabilities 8538021.61 10652607.48
Long-term payable
Long-term employee benefits payable
Anticipated liabilities 1733574.95 1286391.72
Deferred earning 27481194.67 10669612.13
Deferred income tax liabilities 1022644068.29 1030341141.92
Other non-current liabilities
Total of non-current liabilities 2385396859.52 2189949753.25
Total liabilities 6978298543.25 7381276246.82
Owner's equity:
Share capital 1073874227.00 1073874227.00
Other equity tools
Including: preferred stock
Perpetual bond
Capital reserves 4357948.33 4357948.33
Less: Shares in stock
Other miscellaneous income 160264035.45 158405014.52
Special reserves
Surplus reserve 83974716.22 83974716.22
Common risk provisions
Undistributed profit 4768787887.16 4805192000.28
Total of owner's equity belong to the
6091258814.166125803906.35
parent company
Minor shareholders' equity 48324320.96 48307072.04
Total of owners' equity 6139583135.12 6174110978.39
Total of liabilities and owner's interest 13117881678.37 13555387225.21
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua
2. Balance Sheet of the Parent Company
In RMB
Item Closing balance Opening balance
Current asset:
Monetary capital 53944770.59 45751906.05
56Interim Report 2025 of China Fangda Group Co. Ltd.
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 3966591.37 2885125.35
Receivable financing
Prepayment 145287.27
Other receivables 1222140569.04 1622103166.85
Including: interest receivable
Dividend receivable
Inventory
Among them: data resources
Contract assets
Assets held for sales
Non-current assets due in 1 year
Other current assets 2268228.33 2081838.29
Total current assets 1282320159.33 1672967323.81
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term share equity investment 1657062530.00 1657062530.00
Investment in other equity tools
Other non-current financial assets 30000001.00 30000001.00
Investment real estate 380644350.00 380644350.00
Fixed assets 45850490.60 46688469.68
Construction in process
Productive biological assets
Gas & petrol
Use right assets 4829479.27 8030919.38
Intangible assets 1375439.88 1200848.82
Among them: data resources
R&D expense
Among them: data resources
Goodwill
Long-term amortizable expenses 151346.82 285478.52
Deferred income tax assets
Other non-current assets
Total of non-current assets 2119913637.57 2123912597.40
Total of assets 3402233796.90 3796879921.21
Current liabilities
Short-term loans
Transactional financial liabilities
57Interim Report 2025 of China Fangda Group Co. Ltd.
Derivative financial liabilities
Notes payable
Account payable 1148635.91 873640.82
Prepayment received 936173.09 749684.15
Contract liabilities
Employees' wage payable 1057751.61 2834942.51
Taxes payable 849136.20 286140.09
Other payables 1077973149.44 1437682555.06
Including: interest payable
Dividend payable
Liabilities held for sales
Non-current liabilities due in 1 year 2785166.41 3531740.50
Other current liabilities 195500.18 164239.72
Total current liabilities 1084945512.84 1446122942.85
Non-current liabilities:
Long-term loans
Bond payable
Including: preferred stock
Perpetual bond
Lease liabilities 2160836.77 4614693.40
Long-term payable
Long-term employee benefits payable
Anticipated liabilities
Deferred earning
Deferred income tax liabilities 42437940.19 42909713.11
Other non-current liabilities
Total of non-current liabilities 44598776.96 47524406.51
Total liabilities 1129544289.80 1493647349.36
Owner's equity:
Share capital 1073874227.00 1073874227.00
Other equity tools
Including: preferred stock
Perpetual bond
Capital reserves 360835.52 360835.52
Less: Shares in stock
Other miscellaneous income 39731740.46 39731740.46
Special reserves
Surplus reserve 83974716.22 83974716.22
Undistributed profit 1074747987.90 1105291052.65
Total of owners' equity 2272689507.10 2303232571.85
Total of liabilities and owner's interest 3402233796.90 3796879921.21
3. Consolidated Income Statement
In RMB
Item H1 2025 H1 2024
58Interim Report 2025 of China Fangda Group Co. Ltd.
1. Total revenue 1598286450.04 2133845587.76
Incl. Business income 1598286450.04 2133845587.76
Interest income
Insurance fee earned
Fee and commission received
2. Total business cost 1536129791.61 1985288554.65
Incl. Business cost 1307537649.28 1737599184.98
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy responsibility reserves provided
Insurance policy dividend paid
Reinsurance expenses
Taxes and surcharges 16691311.31 22159952.79
Sales expense 22633578.48 23558271.96
Administrative expense 90172531.38 84841558.95
R&D cost 61514176.71 85639602.88
Financial expenses 37580544.45 31489983.09
Including: interest cost 36331469.54 29211652.87
Interest income 5980063.68 11466633.99
Add: other gains 6902959.39 11462337.51
Investment gains ("-" for loss) -680394.74 -2082121.20
Incl. Investment gains from affiliates and joint ventures -35164.25 -34959.52
Financial assets derecognized as a result of
-696903.65-1123208.42
amortized cost
Exchange gains ("—" for loss)
Net open hedge gains ("-" for loss)
Gains from change of fair value ("-" for loss) 2766545.64 558364.87
Credit impairment ("-" for loss) -59005981.56 -7874799.00
Investment impairment loss ("-" for loss) 4589393.55 -15876085.85
Investment gains ("-" for loss) -1522602.22 -1490.22
3. Operating profit ("-" for loss) 15206578.49 134743239.22
Plus: non-operational income 219391.05 178760.55
Less: non-operational expenditure 576871.24 535703.48
4. Gross profit ("-" for loss) 14849098.30 134386296.29
Less: Income tax expenses -2457491.76 16519019.26
5. Net profit ("-" for net loss) 17306590.06 117867277.03
(1) By operating consistency
1. Net profit from continuous operation ("-" for net loss) 17306590.06 117867277.03
2. Net profit from discontinuous operation ("-" for net loss)
(2) By ownership
1. Net profit attributable to the shareholders of the parent
17289598.23116795117.62
company ("-" for net loss)
2. Gains and losses of minority shareholders ("-" for net loss) 16991.83 1072159.41
59Interim Report 2025 of China Fangda Group Co. Ltd.
6. After-tax net amount of other misc. incomes 1859278.02 28588475.40
After-tax net amount of other misc. incomes attributed to parent's
1859020.9328592893.06
owner
(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
1859020.9328592893.06
loss
1. Other comprehensive income that can be transferred to profit
or loss under the equity method
2. Fair value change of other debt investment
3. Gains and losses from changes in fair value of available-for-
sale financial assets
4. Other credit investment credit impairment provisions
5. Cash flow hedge reserve 1358491.26 -676913.84
6. Translation difference of foreign exchange statement 578581.44 -320041.06
7. Others -78051.77 29589847.96
After-tax net of other misc. income attributed to minority
257.09-4417.66
shareholders
7. Total of misc. incomes 19165868.08 146455752.43
Total of misc. incomes attributable to the owners of the parent
19148619.16145388010.68
company
Total misc gains attributable to the minor shareholders 17248.92 1067741.75
8. Earnings per share:
(1) Basic earnings per share 0.0161 0.1088
(2) Diluted earnings per share 0.0161 0.1088
Net profit contributed by entities merged under common control in the report period was RMB0.00 net profit realized by parties
merged during the previous period is RMB0.00.Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua
4. Income Statement of the Parent Company
In RMB
Item H1 2025 H1 2024
1. Turnover 11205926.52 10908179.61
Less: Operation cost 0.00 38387.33
Taxes and surcharges 631890.33 800435.12
Sales expense
Administrative expense 13655557.07 14985010.04
R&D cost
Financial expenses -140903.66 4743454.39
Including: interest cost 133932.04 4028333.33
Interest income 200370.07 176948.43
Add: other gains 58615.83 92490.50
Investment gains ("-" for loss) 25548151.98 62189550.62
Incl. Investment gains from affiliates and joint ventures
60Interim Report 2025 of China Fangda Group Co. Ltd.
Financial assets derecognized as a result of amortized
cost ("-" for loss)
Net open hedge gains ("-" for loss)
Gains from change of fair value ("-" for loss)
Credit impairment ("-" for loss) -26336.24 -87996.70
Investment impairment loss ("-" for loss)
Investment gains ("-" for loss) 32377.91 1053415.23
2. Operational profit ("-" for loss) 22672192.26 53588352.38
Plus: non-operational income 6681.42 5025.00
Less: non-operational expenditure 5000.00
3. Gross profit ("-" for loss) 22678873.68 53588377.38
Less: Income tax expenses -471772.92 -1493380.54
4. Net profit ("-" for net loss) 23150646.60 55081757.92
(1) Net profit from continuous operation ("-" for net loss) 23150646.60 55081757.92
(2) Net profit from discontinuous operation ("-" for net loss)
5. After-tax net amount of other misc. incomes 28392754.08
(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
28392754.08
loss
1. Other comprehensive income that can be transferred to profit
or loss under the equity method
2. Fair value change of other debt investment
3. Gains and losses from changes in fair value of available-for-
sale financial assets
4. Other credit investment credit impairment provisions
5. Cash flow hedge reserve
6. Translation difference of foreign exchange statement
7. Others 28392754.08
6. Total of misc. incomes 23150646.60 83474512.00
7. Earnings per share:
(1) Basic earnings per share
(2) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Item H1 2025 H1 2024
1. Net cash flow from business operations:
Cash received from sales of products and providing of services 1644864672.27 2015279577.92
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
61Interim Report 2025 of China Fangda Group Co. Ltd.
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 3765227.06 3542492.79
Other cash received from business operation 76539611.68 43910264.70
Sub-total of cash inflow from business operations 1725169511.01 2062732335.41
Cash paid for purchasing products and services 1406952767.91 1575961682.07
Net increase of client trade and advance
Net increase of savings in central bank and brother company
Cash paid for original contract claim
Net increase in funds dismantled
Cash paid for interest processing fee and commission
Cash paid for policy dividend
Cash paid to and for the staff 266473149.48 265431660.16
Taxes paid 87939225.95 80833799.58
Other cash paid for business activities 230151595.52 312036191.81
Sub-total of cash outflow from business operations 1991516738.86 2234263333.62
Cash flow generated by business operations net -266347227.85 -171530998.21
2. Cash flow generated by investment:
Cash received from investment recovery 985601.68
Cash received as investment profit 54562.28 101435.57
Net cash retrieved from disposal of fixed assets intangible assets
47639388.99266715.00
and other long-term assets
Net cash received from disposal of subsidiaries or other operational
units
Other investment-related cash received
Sub-total of cash inflow generated from investment 47693951.27 1353752.25
Cash paid for construction of fixed assets intangible assets and
15143990.05167181373.04
other long-term assets
Cash paid as investment
Net increase of loan against pledge
Net cash paid for acquiring subsidiaries and other operational units
Other cash paid for investment 890803.00
Subtotal of cash outflows 15143990.05 168072176.04
Cash flow generated by investment activities net 32549961.22 -166718423.79
3. Cash flow generated by financing activities:
Cash received from investment 15.06
Incl. Cash received from investment attracted by subsidiaries from
minority shareholders
Cash received from borrowed loans 1893093229.99 2253971200.00
Other cash received from financing activities 191000000.00 330600944.44
Subtotal of cash inflow from financing activities 2084093245.05 2584572144.44
Cash paid to repay debts 1947980500.00 1769800000.00
Cash paid as dividend profit or interests 88294367.10 124740119.51
Incl. Dividend and profit paid by subsidiaries to minority
shareholders
Other cash paid for financing activities 89650891.23 224565671.40
Subtotal of cash outflow from financing activities 2125925758.33 2119105790.91
Net cash flow generated by financing activities -41832513.28 465466353.53
4. Influence of exchange rate changes on cash and cash equivalents 3502591.55 1584220.89
62Interim Report 2025 of China Fangda Group Co. Ltd.
5. Net increase in cash and cash equivalents -272127188.36 128801152.42
Plus: Balance of cash and cash equivalents at the beginning of term 1031725216.34 779661118.42
6. Balance of cash and cash equivalents at the end of the period 759598027.98 908462270.84
6. Cash Flow Statement of the Parent Company
In RMB
Item H1 2025 H1 2024
1. Net cash flow from business operations:
Cash received from sales of products and providing of services 7261020.96 14751757.54
Tax refunded
Other cash received from business operation 559232320.99 1300660929.18
Sub-total of cash inflow from business operations 566493341.95 1315412686.72
Cash paid for purchasing products and services 1382148.25 1426152.31
Cash paid to and for the staff 9831037.86 9514951.33
Taxes paid 561987.88 760711.10
Other cash paid for business activities 516801634.20 808337232.77
Sub-total of cash outflow from business operations 528576808.19 820039047.51
Cash flow generated by business operations net 37916533.76 495373639.21
2. Cash flow generated by investment:
Cash received from investment recovery 235323000.00
Cash received as investment profit 25551041.10 47167.38
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
Sub-total of cash inflow generated from investment 25551041.10 235370167.38
Cash paid for construction of fixed assets intangible assets and
79143.9426733.00
other long-term assets
Cash paid as investment 365554277.00
Net cash paid for acquiring subsidiaries and other operational units
Other cash paid for investment
Subtotal of cash outflows 79143.94 365581010.00
Cash flow generated by investment activities net 25471897.16 -130210842.62
3. Cash flow generated by financing activities:
Cash received from investment
Cash received from borrowed loans
Other cash received from financing activities
Subtotal of cash inflow from financing activities
Cash paid to repay debts 300000000.00
Cash paid as dividend profit or interests 53693711.35 90940972.34
Other cash paid for financing activities 51209383.00
Subtotal of cash outflow from financing activities 104903094.35 390940972.34
Net cash flow generated by financing activities -104903094.35 -390940972.34
4. Influence of exchange rate changes on cash and cash equivalents 79727.97 17360.14
5. Net increase in cash and cash equivalents -41434935.46 -25760815.61
Plus: Balance of cash and cash equivalents at the beginning of term 45501906.05 45676194.32
6. Balance of cash and cash equivalents at the end of the period 4066970.59 19915378.71
7. Statement of Change in Owners' Equity (Consolidated)
Amount of the Current Term
In RMB
63Interim Report 2025 of China Fangda Group Co. Ltd.
H1 2025
Owners' Equity Attributable to the Parent Company
Other equity tools Oth
Co Min Tota
Less er Und
mm or l of
Item Shar Pref Perp Capi : misc Spe Surp istri sharon ehol owne erre etua tal Shar ella cial lus bute Oth Subt
Oth risk ers'capi d l rese es in neo rese rese d ers otal
ders'
prov
tal ers rves stoc us rves rve prof equi
equi
shar bon isio ty ty
e d k inco itns
me
107158839480612483617
1. Balance at 435
387405747519580070411
the end of 794
422014.16.220039072.0097
last year 8.33
7.005220.286.3548.39
2. Balance at 107 158 839 480 612 483 617
435
the 387 405 747 519 580 070 411
794
beginning of 422 014. 16.2 200 390 72.0 097
8.33
current year 7.00 52 2 0.28 6.35 4 8.39
3. Change - - -
amount in 185 364 345 172 345
the current 902 041 450 48.9 278
period ("-" 0.93 13.1 92.1 2 43.2
for decrease) 2 9 7
172191191
(1) Total of 185 172
895486658
misc. 902 48.9
98.219.168.0
incomes 0.93 2
368
(2)
Investment
or decreasing
of capital by
owners
---
536536536
(3) Profit
937937937
allotment
11.311.311.3
555
1. Provision
of surplus
reserves
2. Common
risk
provision
---
3.
536536536
Distribution
937937937
to owners (or
11.311.311.3
shareholders)
555
(4) Internal
carry-over of
owners'
equity
(5) Special
reserves
64Interim Report 2025 of China Fangda Group Co. Ltd.
(6) Others
107160839476609483613
4. Balance at 435
387264747878125243958
the end of 794
422035.16.278888120.9313
this period 8.33
7.004527.164.1665.12
Amount of Last Year
In RMB
H1 2024
Owners' Equity Attributable to the Parent Company
Other equity tools Oth Min
Co Tota
Less er Und or
mm l of
Item Shar Pref Perp Capi : misc Spe Surp istri sharon own
e erre etua tal Shar ella cial lus bute Oth Subt ehol
Oth risk ers'capi d l rese es in neo rese rese d ers otal ders'
tal ers
prov equi
shar bon rves stoc us rves rve prof equiisio ty
e d k inco it tyns
me
107114231793477596746603
1. Balance at
387595218249235014552479
the end of
42288.470.740.499405671.2583
last year
7.000930.457.0708.27
2. Balance at 107 114 231 793 477 596 746 603
the 387 595 218 249 235 014 552 479
beginning of 422 88.4 70.7 40.4 994 056 71.2 583
current year 7.00 0 9 3 0.45 7.07 0 8.27
3. Change
-285308594-524
amount in
619928851160697428
the current
79.193.079.493.332721.7
period ("-"
56671.652
for decrease)
285116145146
(1) Total of 106
928795388455
misc. 774
93.0117.010.752.
incomes 1.75
6626843
(2)
Investment
or decreasing
of capital by
owners
---
-
859859928
(3) Profit 696
099099726
allotment 273
38.138.170.1
2.02
668
1. Provision
of surplus
reserves
2. Common
risk
provision
3.----
Distribution 859 859 696 928
to owners (or 099 099 273 726
65Interim Report 2025 of China Fangda Group Co. Ltd.
shareholders) 38.1 38.1 2.02 70.1
668
(4) Internal
carry-over of
owners'
equity
(5) Special
reserves
----
619619107114
(6) Others
79.179.1828026
551.380.53
107113517793480601676608
4. Balance at
387976147249324955819723
the end of
42209.263.840.451166699.5865
this period
7.005539.910.4459.99
8. Statement of Change in Owners' Equity (Parent Company)
Amount of the Current Term
In RMB
H1 2025
Other equity tools Other
Total
Capita Less: miscel Specia Surplu Undist
Item ofShare Prefer Perpet l Shares laneou l s ribute Others owner
capital red ual Others reserv in s reserv reserv d s'
share bond es stock incom es e profit equity
e
1. Balance at 1073 3973 8397 1105 2303
3608
the end of 8742 1740. 4716. 2910 2325
35.52
last year 27.00 46 22 52.65 71.85
2. Balance at
10733973839711052303
the 3608
87421740.4716.29102325
beginning of 35.52
27.00462252.6571.85
current year
3. Change
--
amount in
30543054
the current
3064.3064.
period ("-"
7575
for decrease)
(1) Total of 2315 2315
misc. 0646. 0646.incomes 60 60
(2)
Investment
or decreasing
of capital by
owners
--
(3) Profit 5369 5369
allotment 3711. 3711.
3535
1. Provision
66Interim Report 2025 of China Fangda Group Co. Ltd.
of surplus
reserves
2.--
Distribution 5369 5369
to owners (or 3711. 3711.shareholders) 35 35
(4) Internal
carry-over of
owners'
equity
(5) Special
reserves
(6) Others
4. Balance at 1073 3973 8397 1074 2272
3608
the end of 8742 1740. 4716. 7479 6895
35.52
this period 27.00 46 22 87.90 07.10
Amount of Last Year
In RMB
H1 2024
Other equity tools Other
Total
Capita Less: miscel Specia Surplu Undist
Item ofShare Prefer Perpet l Shares laneou l s ribute Others owner
capital red ual Others reserv in s reserv reserv d s'
share bond es stock incom es e profit equity
e
-
1. Balance at 1073 7932 1159 2303
36081008
the end of 8742 4940. 9884 4655
35.522945.
last year 27.00 43 98.20 55.78
37
2. Balance at -
1073793211592303
the 3608 1008
87424940.98844655
beginning of 35.52 2945.
27.004398.2055.78
current year 37
3. Change
--
amount in 2839
30822435
the current 2754.
8180.426.1
period ("-" 08
246
for decrease)
(1) Total of 2839 5508 8347
misc. 2754. 1757. 4512.incomes 08 92 00
(2)
Investment
or decreasing
of capital by
owners
--
(3) Profit 8590 8590
allotment 9938. 9938.
1616
1. Provision
of surplus
67Interim Report 2025 of China Fangda Group Co. Ltd.
reserves
2.--
Distribution 8590 8590
to owners (or 9938. 9938.shareholders) 16 16
(4) Internal
carry-over of
owners'
equity
(5) Special
reserves
(6) Others
4. Balance at 1073 1830 7932 1129 2301
3608
the end of 8742 9808. 4940. 1603 0301
35.52
this period 27.00 71 43 17.96 29.62
III. General Information
China Fangda Group Co. Ltd. (the "Company" or the "Group") is a joint stock company registered in Shenzhen
Guangdong and was approved by the Government of Shenzhen with Document 深府办函 (1995) 194号 and was founded on the
basis of Shenzhen Fangda Construction Material Co. Ltd. by way of share issuing in October 1995. The unified social credit code
is: 91440300192448589C; registered address: Fangda Technology Building Keji South 12th Road South District High-tech
Industrial Park Nanshan District Shenzhen. Mr. Xiong Jianming is the legal representative.The Company issued foreign currency shares (B shares) and local currency shares (A shares) and listed in November 1995
and April 1996 respectively in Shenzhen Stock Exchange. The Company received the Reply to the Non-public Share Issuance of
Fangda China Group Co. Ltd. (CSRC License [2016] No.825) to allow the Company to conduct non-public issuance of
32184931 A-shares in June 2016. According to the profit distribution plan for 2016 approved by the 2016 general shareholders'
meeting the Company issued five shares for every ten shares to all shareholders through surplus capitalization based on the total
789094836 shares on December 31 2016. The registered capital at the end of 2017 was RMB 1183642254.00. The Company
repurchased and canceled 28160568.00 B shares in August 2018 32097497.00 B shares in January 2019 35105238.00 B
shares in May 2020 14404724.00 B shares in April 2021 and canceled in April 2021. The existing registered capital is
RMB1073874227.00 yuan.The Company has established the corporate governance structure of the General Meeting of Shareholders and the Board of
Directors. At present it has set up the President's Office the Administration Department the Human Resources Department the
Enterprise Management Department the Finance Department the Audit and Supervision Department the Securities Department
the Legal Department the Information Management Department the Technology Innovation Department the Development
Planning Department and other departments and has Shenzhen Fangda Construction Technology Group Co. Ltd. (hereinafter
68Interim Report 2025 of China Fangda Group Co. Ltd.
referred to as Fangda Construction Technology Co. Ltd.) Fangda Zhiyuan Technology Co. Ltd. (hereinafter referred to as Fangda
Zhiyuan Technology Co. Ltd.) Fangda Jiangxi New Materials Co. Ltd. Fangda Real Estate Co. Ltd. Fangda New Energy Co.Ltd. and other subsidiaries.The business nature and main business activities of the Company and its subsidiaries include: (1) curtain wall division
production and sales of curtain wall materials design production and installation of building curtain walls and curtain wall testing
and maintenance services; (2) Rail transit branch assembly and processing of subway screen doors screen door detection and
maintenance services; (3) The real estate division is engaged in real estate development operation and property management on
the land that has legally obtained the right to use; (4) New energy division photovoltaic power generation and sales; R&D
installation and sales of photovoltaic equipment design and installation of photovoltaic power station project.Date of financial statement approval: This financial statement is approved by the Board of Directors of the Company on
August 21 2025.IV. Basis for the Preparation of Financial Statements
1. Preparation basis
The Company prepares the financial statements based on continuous operation and according to actual transactions and
events with figures confirmed and measured in compliance with the Accounting Standards for Business Enterprises and other
specific account standards application guide and interpretations. The Company has also disclosed related financial information
according to the requirement of the Regulations of Information Disclosure No.15 – General Provisions for Financial Statements
(Revised in 2023) issued by the CSRC.
2. Continuous operation
The Company assessed the continuing operations capability of the Company for the 12 months from the end of the reporting
period. No matters were found that would affect the Company's ability to continue as a going concern. It is reasonable for the
Company to prepare financial statements based on continuing operations.V. Significant Account Policies and Estimates
The following major accounting policies and accounting estimates shall be formulated in accordance with the accounting
standards of the enterprise. Unmentioned operations are carried out in accordance with the relevant accounting policies in the
enterprise accounting standards.
69Interim Report 2025 of China Fangda Group Co. Ltd.
1. Statement of compliance to the Enterprise Accounting Standard
These financial statements meet the requirements of the Accounting Standards for Business Enterprises and truly and fully
reflect the Company's financial status performance result changes in shareholders' equity and cash flows.
2. Fiscal Period
The Company The fiscal period ranges between January 1 and December 31 of the Gregorian calendar.
3. Operation period
Our normal business cycle is one year
4. Bookkeeping standard money
The Company's bookkeeping standard currency is Renminbi and overseas subsidiaries are based on the currency of the
main economic environment in which they operate.
5. Method for determining importance criteria and selection criteria
□ Applicable □ Inapplicable
Item Importance criteria
Amount of bad debt reserves recovered or reversed for
Amount greater than 5% of the total consolidated profit and
important accounts receivable in the current period; important
greater than RMB5 million
accounts receivable write off
Important ongoing projects Amount greater than 1% of total consolidated net assets
A single project is greater than 0.1% of the combined total
Important payables with an aging of over 1 year
assets
Individual net assets greater than 1% of the total consolidated
Major non wholly-owned subsidiaries
net assets
Individual Total Profit Exceeding 5% of Consolidated Total
Important joint operations
Profit and Greater than RMB5000000
The investment return is greater than 5% of the total
Important joint ventures and associates
consolidated profit and is greater than RMB5 million
6. Accounting treatment of the entities under common and different control
(1) Consolidation of entities under common control
The assets and liabilities acquired by the Company in a business combination are measured at the book value of the
combined party in the consolidated financial statements of the ultimate controlling party on the date of combination. For entities
with different accounting policies and periods from the Company prior to the business combination accounting policies are
unified based on the principle of materiality. This means adjusting the book value of the assets and liabilities of the combined
70Interim Report 2025 of China Fangda Group Co. Ltd.
entity in accordance with the Company's accounting policies and periods. If there is a difference between the book value of the net
assets acquired by the Company in the business combination and the book value of the consideration paid first adjust the balance
of the capital reserve (capital premium or equity premium) the balance of the capital reserve (capital premium or equity premium)
If it is insufficient to offset the surplus reserve and undistributed profits will be offset in sequence.For the accounting treatment method of business combination not under the same control through step-by-step transactions
see Chapter VIII V. important accounting policies and accounting estimates 7. (6).
(2) Consolidation of entities under different control
All identifiable assets and liabilities acquired by the Company during the merger shall be measured at its fair value on the
date of purchase. For entities with different accounting policies and periods from the Company prior to the business combination
accounting policies are unified based on the principle of materiality. This means adjusting the book value of the assets and
liabilities of the acquired entity in accordance with the Company's accounting policies and periods. The merger cost of the
Company on the date of purchase is greater than the fair value of the assets and liabilities recognized by the purchaser in the
merger and is recognized as goodwill. If the merger cost is less than the difference between the identifiable assets and the fair
value of the liabilities obtained by the purchaser in the enterprise merger the merger cost and the fair value of the identifiable
assets and the liabilities obtained by the purchaser in the enterprise merger are reviewed and the merger cost is still less than the
fair value of the identifiable assets and liabilities obtained by the purchaser after the review the difference is considered as the
profit and loss of the current period of the merger.For the accounting treatment method of business combinations not under common control achieved through step-by-step
transactions see Section VIII V Important Accounting Policies and Estimates 7 (6).
(3) Treatment of related transaction fee in enterprise merger
Agency expenses and other administrative expenses such as auditing legal consulting or appraisal services occurred
relating to the merger of entities are accounted into current income account when occurred. The transaction fees of equity
certificates or liability certificates issued by the purchaser for payment for the acquisition are accounted at the initial amount of the
certificates.
7. Judgment criteria for control and preparation methods for consolidated financial statements
(1) Determination of control criteria and consolidation scope
71Interim Report 2025 of China Fangda Group Co. Ltd.
Control means the power possessed by the Company on invested entities to share variable returns by participating in related
activities of the invested entities and to impact the amount of the returns by using the power. The definition of control includes
three basic elements: first the investor has the power over the investee; second enjoys variable returns due to participation in the
investee's related activities; and third has the ability to use the power over the investee to influence its return amount. When the
Company's investment in the invested party meets the above three elements it indicates that the Company can control the invested
party.The consolidated scope of the consolidated financial statements is determined on a control basis and includes not only
subsidiaries determined on the basis of voting rights (or similar voting rights) themselves or in conjunction with other
arrangements but also structured subjects determined on the basis of one or more contractual arrangements.The subsidiary company is the subject controlled by the Company (including the enterprise the divisible part of the
invested unit and the structured subject controlled by the enterprise etc.). The structured subject is the subject which is not
designed to determine the controlling party by taking the voting right or similar right as the decisive factor.
(2) Special provisions regarding the parent company being an investment entity
If the parent company is an investment entity only those subsidiary companies that provide services related to investment
activities of the investment entity shall be included in the consolidation scope. Other subsidiary companies shall not be
consolidated and their equity investments shall be recognized as financial assets measured at fair value with changes in fair value
recognized in profit or loss.The parent company qualifies as an investment entity when it simultaneously meets the following conditions:
* The company obtains funds from one or more investors with the purpose of providing investment management services
to the investors.* The sole purpose of the company's operations is to generate returns for the investors through capital appreciation
investment income or both.* The company evaluates and assesses the performance of almost all of its investments based on fair value.When the parent company changes from a non-investment entity to an investment entity it shall only include those
subsidiary companies that provide relevant services for its investment activities in the preparation of consolidated financial
statements. Other subsidiary companies shall no longer be consolidated and the principle of recognizing partially disposed
subsidiary companies' equity while retaining control shall be applied.
72Interim Report 2025 of China Fangda Group Co. Ltd.
When the parent company changes from an investment entity to a non-investment entity the subsidiary companies that were
previously not included in the consolidation financial statements shall be included as of the date of the change. The fair value of
these subsidiary companies on the date of the change shall be regarded as the transaction price of the acquisition and accounted for
using the accounting treatment for business combinations under common control.
(3) Preparation of Consolidated Financial Statements
The Company prepares consolidated financial statements based on the financial statements of itself and its subsidiaries and
based on other relevant information.The Company compiles consolidated financial statements regards the whole enterprise group as an accounting entity
reflects the overall financial status operating results and cash flow of the enterprise group according to the confirmation
measurement and presentation requirements of the relevant enterprise accounting standards and the unified accounting policy and
accounting period.* Merge the assets liabilities owner's rights and interests income expenses and cash flow of parent company and
subsidiary company.* Offset the long-term equity investment of the parent company to the subsidiary company and the share of the parent
company in the ownership rights of the subsidiary company.* Offset the influence of internal transaction between parent company subsidiary company and subsidiary company. If an
internal transaction indicates that the relevant asset has suffered an impairment loss the part of the loss shall be confirmed in full.* adjust the special transaction from the angle of enterprise group.
(4) Processing of subsidiaries during the reporting period
* Increase of subsidiaries or business
A. Subsidiary or business increased by business combination under the same control
(A) When preparing the consolidated balance sheet adjust the opening number of the consolidated balance sheet and adjust
the related items of the comparative statement. The same report entity as the consolidated balance sheet will exist from the time of
the final control party.
(B) When preparing the consolidated cash flow statement the cash flows of the subsidiary and the business combination
from the beginning of the current period to the end of the reporting period are included in the consolidated cash flow statement
73Interim Report 2025 of China Fangda Group Co. Ltd.
and the related items of the comparative statement are adjusted which is regarded as the combined report body since the final The
controller has been there since the beginning of control.
(C) When preparing the consolidated cash flow statement the cash flows of the subsidiary and the business combination
from the beginning of the current period to the end of the reporting period are included in the consolidated cash flow statement
and the related items of the comparative statement are adjusted which is regarded as the combined report body since the final The
controller has been there since the beginning of control.B. Subsidiary or business increased by business combination under the same control
(A) When preparing the consolidated balance sheet the opening number of the consolidated balance sheet is not adjusted.
(B) When preparing the consolidated profit statement the income expense and profit of the subsidiary company and the
business Purchase date and Closing balance shall be included in the consolidated profit statement.
(C) When the consolidated cash flow statement is prepared the cash flow from the purchase date of the subsidiary to the
end of the reporting period is included in the consolidated cash flow statement.* Disposal of subsidiaries or business
A. When preparing the consolidated balance sheet the opening number of the consolidated balance sheet is not adjusted.B. When preparing the consolidated profit statement the income expense and profit of the subsidiary company and the
business opening and disposal date shall be included in the consolidated profit statement.C. When the consolidated cash flow statement is prepared the cash flow from the Beginning of the period of the subsidiary
to the end of the reporting period is included in the consolidated cash flow statement.
(5) Special considerations in consolidation offsets
* The long-term equity investment held by a subsidiary company shall be regarded as the inventory shares of the Company
as a subtraction of the owner's rights and interests which shall be listed under the item of "subtraction: Stock shares" under the
item of owner's rights and interests in the consolidated balance sheet.The long-term equity investments held by the subsidiaries are offset by the shares of the shareholders of the subsidiaries.* The "special reserve" and "general risk preparation" projects because they are neither real capital (or share capital) nor
capital reserve but also different from the retained income and undistributed profits are restored according to the ownership of the
parent company after the long-term equity investment is offset by the ownership rights and interests of the subsidiary company.
74Interim Report 2025 of China Fangda Group Co. Ltd.
* If there is a temporary difference between the book value of assets and liabilities in the consolidated balance sheet and
the taxable basis of the taxpayer due to the offset of the unrealized internal sales gain or loss the deferred income tax asset or the
deferred income tax liability is confirmed in the consolidated balance sheet and the income tax expense in the consolidated profit
statement is adjusted with the exception of the deferred income tax related to the transaction or event directly included in the
owner's equity and the merger of the enterprise.* The unrealized internal transaction gains and losses incurred by the Company from selling assets to subsidiaries shall be
fully offset against the "net profit attributable to the owners of the parent company". The unrealized internal transaction gains and
losses arising from the sale of assets by the subsidiary to the Company shall be offset between the "net profit attributable to the
owners of the parent company" and the "minority shareholder gains and losses" in accordance with the Company's distribution
ratio to the subsidiary. The unrealized internal transaction gains and losses arising from the sale of assets between subsidiaries
shall be offset between the "net profit attributable to the owners of the parent company" and the "minority shareholders' gains and
losses" in accordance with the Company's distribution ratio to the seller's subsidiary .* If the current loss shared by the minority shareholders of the subsidiary exceeds the share of the minority shareholders in
the owner 's equity of the subsidiary at the beginning of the period the balance should still be offset against the minority
shareholders 'equity.
(6) Accounting treatment of special transactions
* Purchase minority shareholders' equity
The Company purchases the shares of the subsidiaries owned by the minority shareholders of the subsidiaries. In the
individual financial statements the investment costs of the newly acquired long-term investments of the minority shares shall be
measured at the fair value of the price paid. In the consolidated financial statements the difference between the newly acquired
long-term equity investment due to the purchase of minority equity and the share of net assets that should be continuously
calculated by the subsidiary since the purchase date or the merger date should be adjusted according to the new shareholding ratio.The product (capital premium or equity premium) if the capital reserve is insufficient to offset the surplus reserve and
undistributed profits are offset in turn.* Step-by-step acquisition of control of the subsidiary through multiple transactions
A. Enterprise merger under common control through multiple transactions
On the date of the merger the Company determines the initial investment cost of the long-term equity investment in the
individual financial statements based on the share of the subsidiary 's net assets that should be enjoyed after the merger in the final
75Interim Report 2025 of China Fangda Group Co. Ltd.
controller 's consolidated financial statements; the initial investment cost and the difference between the book value of the long-
term equity investment before the merger plus the book value of the consideration paid for new shares acquired on the merger date
the capital reserve (capital premium or equity premium) is adjusted and the capital reserve (capital premium or equity premium) is
insufficient to offset Reduced in turn offset the surplus reserve and undistributed profits.In consolidated financial statements assets and liabilities obtained by the merging party from the merged party should be
measured at the book value in the final controlling party's consolidated financial statements other than the adjustment made due to
differences in accounting policies; adjust the capital surplus (share premium) according to the difference between the initial
investment cost and the book value of the held investment before merger plus the book value of the consideration paid on the
merger date. Where the capital surplus falls short the retained income should be adjusted.Before the acquirer obtains control of the acquiree any recognized gains and losses other comprehensive income and
changes in other owners' equity related to the equity investment held by the acquirer from the later of the date when the original
equity was obtained or the date when both the acquirer and the acquiree were under the control of the same party until the
acquisition date should be adjusted against the beginning retained earnings or the current profits and losses of the comparative
statements separately.A. Enterprise merger under common control through multiple transactions
On the merger day in individual financial statements the initial investment cost of the long-term equity investment on the
merger day is based on the book value of the long-term equity investment previously held plus the sum of the additional
investment costs on the merger day.In the consolidated financial statements the equity held in the acquiree before the acquisition date is remeasured at its fair
value on the acquisition date. If the equity held before the acquisition date is designated as a financial asset measured at fair value
through other comprehensive income the difference between the fair value and its book value is included in retained earnings and
the cumulative fair value changes previously included in other comprehensive income are transferred to retained earnings. If the
equity held before the acquisition date is designated as a financial asset measured at fair value through profit or loss or as a long-
term equity investment accounted for by the equity method the difference between the fair value and its book value is included in
the current period's investment income. For other comprehensive income and other changes in owners' equity under the equity
method related to the equity held before the acquisition date the related other comprehensive income is accounted for on the same
basis as if the investee had directly disposed of the related assets or liabilities on the acquisition date and the related other changes
in owners' equity are transferred to the current period's investment income on the acquisition date.
76Interim Report 2025 of China Fangda Group Co. Ltd.
(3) The Company disposes of long-term equity investment in subsidiaries without losing control
The parent company partially disposes of the long-term equity investment in the subsidiary company without losing control.In the consolidated financial statements the disposal price corresponds to the disposal of the long-term equity investment. The
difference between the shares is adjusted for the capital reserve (capital premium or equity premium). If the capital reserve is
insufficient to offset the retained earnings are adjusted.* The Company disposes of long-term equity investment in subsidiaries and loses control
A. One transaction disposition
If the Company loses control over the Invested Party due to the disposal of part of the equity investment it shall remeasure
the remaining equity according to its fair value at the date of loss of control when compiling the consolidated financial statement.The consideration received from the disposal of equity plus the fair value of the remaining equity minus the share of net assets
and goodwill calculated based on the original shareholding ratio from the acquisition date or combination date to the disposal date
is included in the investment income for the period in which control is lost.Other comprehensive income and other changes in owners' equity related to the equity investment in the original subsidiary
are accounted for on the same basis as if the subsidiary had directly disposed of the related assets or liabilities when control is lost
and other changes in owners' equity under the equity method related to the original subsidiary are transferred to the current
period's profit or loss when control is lost.B. Multi-transaction step-by-step disposition
In consolidated financial statements you should first determine whether a step-by-step transaction is a "blanket transaction".If the step-by-step transaction does not belong to a "package deal" in the individual financial statements for each
transaction before the loss of control of the subsidiary the book value of the long-term equity investment corresponding to each
disposal of equity is carried forward the price received and the disposal The difference between the book value of the long-term
equity investment is included in the current investment income; in the consolidated financial statements it should be handled in
accordance with the relevant provisions of "the parent company disposes of the long-term equity investment in the subsidiary
without losing control."
If a step-by-step transaction belongs to a "blanket transaction" the transaction shall be treated as a transaction that disposes
of the subsidiary and loses control; In individual financial statements the difference between each disposal price before the loss of
control and the book value of the long-term equity investment corresponding to the equity being disposed of is first recognized as
77Interim Report 2025 of China Fangda Group Co. Ltd.
other consolidated gains and then converted to the current loss of control at the time of the loss of control; In the consolidated
financial statements for each transaction prior to the loss of control the difference between the disposition of the price and the
disposition of the investment corresponding to the share in the net assets of the subsidiary shall be recognized as other
consolidated gains and shall at the time of the loss of control be transferred to the loss of control for the current period.Where the terms conditions and economic impact of each transaction meet one or more of the following conditions
usually multiple transactions are treated as a "package deal":
(a) These transactions were concluded at the same time or in consideration of mutual influence.(b) These transactions can only achieve the business result as a whole;
(c) The effectiveness of one transaction depends the occurrence of at least another transaction;
(d) A single transaction is not economic and is economic when considered together with other transactions.
(5) Proportion of minority shareholders in factor companies who increase capital and dilute ownership of parent companies
When other shareholders (minority shareholders) of a subsidiary increase their investment in the subsidiary thereby diluting
the parent company's equity proportion in the subsidiary. In the consolidated financial statements the share of the parent company
in the net book assets of the former subsidiary of the capital increase is calculated according to the share ratio of the parent
company before the capital increase the difference between the share and the net book assets of the latter subsidiary after the
capital increase is calculated according to the share ratio of the parent company the capital reserve (capital premium or capital
premium) the capital reserve (capital premium or capital premium) is not offset and the retained income is adjusted.
8. Recognition of cash and cash equivalents
Cash refers to cash in stock and deposits that can be used for payment at any time. Cash equivalents refer to investments
with a short holding period (generally referring to expiry within three months from the date of purchase) strong liquidity easy to
convert to a known amount of cash and little risk of value change.
9.Foreign exchange business and foreign exchange statement translation
(1) Methods for determining conversion rates in foreign currency transactions
The Company translates foreign currency transactions into the functional currency at the initial recognition using the spot
exchange rate on the transaction date or an approximate exchange rate that is determined according to a reasonable method and is
close to the spot exchange rate on the transaction date. The resulting amount is recorded in the accounting currency.
78Interim Report 2025 of China Fangda Group Co. Ltd.
(2) Methods of conversion of foreign currency currency currency items on balance sheet days
At the balance sheet date foreign currency items are translated on the spot exchange rate of the balance sheet date. The
exchange differences caused by the difference in exchange rates on the balance sheet date and initial recognizing date or previous
balance sheet date are included in the current profits and losses. For non-monetary items measured at historical cost in foreign
currencies they are translated using the spot exchange rate on the transaction date. For inventories measured at the lower of cost
and net realizable value if the inventories were purchased in foreign currencies and their net realizable value is reflected in foreign
currencies as of the balance sheet date the net realizable value is first translated into the functional currency at the spot exchange
rate on the balance sheet date and then compared with the inventory cost reflected in the functional currency to determine the
ending value of the inventories. Non-monetary items measured at fair value in foreign currencies are translated using the spot
exchange rate on the date the fair value is determined. For financial assets measured at fair value with changes recognized in the
current period's profit or loss the difference between the translated amount in the functional currency and the original amount in
the functional currency is recognized in the current period's profit or loss. For non-trading equity investments designated to be
measured at fair value with changes recognized in other comprehensive income the difference between the translated amount in
the functional currency and the original amount in the functional currency is recognized in other comprehensive income.
(3) Translation of foreign exchange statements
Prior to the conversion of the financial statements of an enterprise's overseas operations the accounting period and policy of
the overseas operations should be adjusted to conform to the accounting period and policy of the enterprise. The financial
statements of the corresponding currency (other than the functional currency) should be prepared according to the adjusted
accounting policy and the accounting period. The financial statements of the overseas operations should be converted according to
the following methods:
* The assets and liabilities items in the balance sheet are translated at the spot exchange rate on the balance sheet date.Except for the "undistributed profits" items the owner's equity items are translated at the spot exchange rate when they occur.* The income and expense items in the profit statement are converted at the spot exchange rate on the transaction date or
the approximate exchange rate of the spot exchange rate.* The foreign currency cash flow and the foreign subsidiary's cash flow are converted using the immediate exchange rate
or the approximate exchange rate at the date of the cash flow. The impact of exchange rate changes on cash should be used as an
adjustment item and presented separately in the cash flow statement.
79Interim Report 2025 of China Fangda Group Co. Ltd.
* The foreign currency translation differences arising are presented under the "Other Comprehensive Income" item in the
shareholders' equity section of the consolidated balance sheet when preparing the consolidated financial statements.When foreign operations are disposed of and the control rights are lost the difference in foreign currency statements related
to the overseas operations that are listed in the shareholders' equity items in the balance sheet is transferred to the profit or loss for
the current period either in whole or in proportion to the disposal of the foreign operations.
10. Financial instrument
Financial instrument refers to a company's financial assets and contracts that form other units of financial liabilities or
equity instruments.
(1) Recognition and de-recognition of financial instrument
The Company recognizes a financial asset or liability when it becomes one party in the financial instrument contract.Financial asset is derecognized when:
* The contractual right to receive the cash flows of the financial assets is terminated;
* The financial asset is transferred and meets the following derecognization condition.If the current obligation of a financial liability (or part of it) has been discharged the Company derecognises the financial
liability (or part of the financial liability). When the Company (borrower) and lender enter into an agreement to replace the
original financial liabilities by undertaking new financial liabilities and the contract terms for the new financial liabilities are
essentially different from those for the original one the original financial liabilities will be derecognized and new financial
liabilities will be recognized. Where the Company makes substantial amendments to the contract terms of the original financial
liability (or part thereof) it shall terminate the original financial liability and confirm a new financial liability in accordance with
the amended terms.Financial asset transactions in regular ways are recognized and de-recognized on the transaction date. The conventional sale
of financial assets means the delivery of financial assets in accordance with the contractual terms and conditions at the time set
out in the regulations or market practices. Transaction date refers to the date when the Company promises to buy or sell financial
assets.
(2) Classification and subsequent measurement of financial assets
80Interim Report 2025 of China Fangda Group Co. Ltd.
At initial recognition the Company classifies financial assets into the following three categories based on the business
model of managing financial assets and the contractual cash flow characteristics of financial assets: financial assets measured at
amortized cost are measured at fair value and their changes are included in other financial assets with current profit and loss and
financial assets measured at fair value through profit or loss. Unless the Company changes the business model for managing
financial assets in this case all affected financial assets are reclassified on the first day of the first reporting period after the
business model changes otherwise the financial assets may not be initially confirmed.Financial assets are measured at the fair value at the initial recognition. For financial assets measured at fair value with
variations accounted into current income account related transaction expenses are accounted into the current income. For other
financial assets the related transaction expenses are accounted into the initial recognized amounts. Bills receivable and accounts
receivable arising from the sale of commodities or the provision of labor services that do not contain or do not consider significant
financing components the Company performs initial measurement according to the transaction price defined by the income
standard.The subsequent measurement of financial assets depends on their classification:
* Financial assets measured at amortized cost
Financial assets that meet the following conditions at the same time are classified as financial assets measured at amortized
cost: The Company 's business model for managing this financial asset is to collect contractual cash flows as its goal; the contract
terms of the financial asset stipulate that Cash flow is only the payment of principal and interest based on the outstanding principal
amount. For such financial assets the actual interest rate method is used for subsequent measurement according to the amortized
cost. The gains or losses arising from the termination of recognition amortization or impairment based on the actual interest rate
method are included in the current profit and loss.* Financial assets measured at fair value and whose changes are included in other comprehensive income
Financial assets that meet the following conditions at the same time are classified as financial assets measured at fair value
and their changes are included in other comprehensive income: The Company's business model for managing this financial asset is
to both target the collection of contractual cash flows and the sale of financial assets. Objective; The contractual terms of the
financial asset stipulate that the cash flow generated on a specific date is only for the payment of principal and interest based on
the outstanding principal amount. For such financial assets fair value is used for subsequent measurement. Except for impairment
losses or gains and exchange gains and losses recognized as current gains and losses changes in the fair value of such financial
assets are recognized as other comprehensive income. Until the financial asset is derecognized its accumulated gains or losses are
81Interim Report 2025 of China Fangda Group Co. Ltd.
transferred to current gains and losses. However the relevant interest income of the financial asset calculated by the actual interest
rate method is included in the current profit and loss.The Company irrevocably chooses to designate a portion of non-tradable equity instrument investment as a financial asset
measured at fair value and whose variation is included in other consolidated income. Only the relevant dividend income is
included in the current profit and loss and the variation of fair value is recognized as other consolidated income.* Financial assets measured at fair value with variations accounted into current income account
The above financial assets measured at amortized cost and other financial assets measured at fair value and whose changes
are included in other comprehensive income are classified as financial assets measured at fair value and whose changes are
included in the current profit and loss. For such financial assets fair value is used for subsequent measurement and all changes in
fair value are included in current profit and loss.
(3) Classification and measurement of financial liabilities
The Company classifies financial liabilities into financial liabilities measured at fair value and their changes included in the
current profit and loss loan commitments and financial guarantee contract liabilities for loans below market interest rates and
financial liabilities measured at amortized cost.The subsequent measurement of financial liabilities depends on their classification:
* Financial liabilities measured at fair value with variations accounted into current income account
Such financial liabilities include transactional financial liabilities (including derivatives that are financial liabilities) and
financial liabilities designated as at fair value through profit or loss. After the initial recognition the financial liabilities are
subsequently measured at fair value. Except for the hedge accounting the gains or losses (including interest expenses) are
recognized in profit or loss. However for the financial liabilities designated as fair value and whose variations are included in the
profits and losses of the current period the variable amount of the fair value of the financial liability due to the variation of credit
risk of the financial liability shall be included in the other consolidated income. When the financial liability is terminated the
cumulative gains and losses previously included in the other consolidated income shall be transferred out of the other consolidated
income and shall be included in the retained income.* Loan commitments and financial security contractual liabilities
82Interim Report 2025 of China Fangda Group Co. Ltd.
A loan commitment is a promise that the Company provides to customers to issue loans to customers with established
contract terms within the commitment period. Loan commitments are provided for impairment losses based on the expected credit
loss model.A financial guarantee contract refers to a contract that requires the Company to pay a specific amount of compensation to
the contract holder who suffered a loss when a specific debtor is unable to repay the debt in accordance with the original or
modified debt instrument terms. Financial guarantee contract liabilities are subsequently measured based on the higher of the loss
reserve amount determined in accordance with the principle of impairment of financial instruments and the initial recognition
amount after deducting the accumulated amortization amount determined in accordance with the revenue recognition principle.* Financial liabilities measured at amortized cost
After initial recognition other financial liabilities are measured at amortized cost using the effective interest method.Except in special circumstances financial liabilities and equity instruments are distinguished according to the following
principles:
* If the Company cannot unconditionally avoid delivering cash or other financial assets to fulfill a contractual obligation
the contractual obligation meets the definition of financial liability. While some financial instruments do not explicitly contain
terms and conditions for the delivery of cash or other financial assets they may indirectly form contractual obligations through
other terms and conditions.If a financial instrument is required to be settled with or can be settled with the Company's own equity instruments the
Company's own equity instrument used to settle the instrument needs to be considered as a substitute for cash or other financial
assets or for the holder of the instrument to enjoy the remaining equity in the assets after all liabilities are deducted. If it is the
former the instrument is the financial liabilities of the issuer; if it is the latter the instrument is the equity instrument of the issuer.In some cases a financial instrument contract provides that the Company shall or may use its own instrument of interest in which
the amount of a contractual right or obligation is equal to the amount of the instrument of its own interest which may be acquired
or delivered multiplied by its fair value at the time of settlement whether the amount of the contractual right or obligation is fixed
or is based entirely or in part on a variation of a variable other than the market price of the instrument of its own interest such as
the rate of interest the price of a commodity or the price of a financial instrument the contract is classified as a financial liability.
(4) Derivative financial instruments and embedded derivatives
83Interim Report 2025 of China Fangda Group Co. Ltd.
Derivative financial instruments are initially measured at the fair value of the day when the derivative transaction contract is
signed and are subsequently measured at their fair values. Derivative financial instruments with a positive fair value are
recognized as asset and instruments with a negative fair value are recognized as liabilities.The gains and losses arising from the change in fair value of derivatives are directly included in the profits and losses of the
current period except that the part of the cash flow that is valid in the hedge is included in the other consolidated income and
transferred out when the hedged item affects the gain and loss of the current period.For a hybrid instrument containing an embedded derivative instrument if the principal contract is a financial asset the
hybrid instrument as a whole applies the relevant provisions of the financial asset classification. If the main contract is not a
financial asset and the hybrid instrument is not measured at fair value and its changes are included in the current profit and loss
for accounting the embedded derivative does not have a close relationship with the main contract in terms of economic
characteristics and risks and it is If the instruments with the same conditions and exist separately meet the definition of derivative
instruments the embedded derivative instruments are separated from the mixed instruments and treated as separate derivative
financial instruments. If the fair value of the embedded derivative on the acquisition date or the subsequent balance sheet date
cannot be measured separately the hybrid instrument as a whole is designated as a financial asset or financial liability measured at
fair value and whose changes are included in the current profit or loss.
(5) Financial instrument Less
The Company shall confirm the preparation for loss on the basis of expected credit loss for financial assets measured at
amortization costs creditor's rights investments measured at fair value contractual assets leasing receivables loan commitments
and financial guarantee contracts etc.* Measurement of expected credit losses of accounts receivable
The expected credit loss refers to the weighted average of the credit losses of financial instruments that are weighted by the
risk of default. Credit loss refers to the difference between all contractual cash flows receivable from the contract and all cash
flows expected to be received by the Company at the original actual interest rate that is the present value of all cash shortages.Among them the financial assets which have been purchased or born by the Company shall be discounted according to the actual
rate of credit adjustment of the financial assets.The expected lifetime credit loss is the expected credit loss due to all possible default events during the entire expected life
of the financial instrument.
84Interim Report 2025 of China Fangda Group Co. Ltd.
Expected credit losses in the next 12 months are expected to result from possible defaults in financial instruments within 12
months after the balance sheet date (or estimated duration of financial instruments if the expected duration is less than 12 months)
Credit losses are part of the expected lifetime credit loss.On each balance sheet day the Company measures the expected credit losses of financial instruments at different stages.Where the credit risk has not increased significantly since the initial confirmation of the financial instrument it is in the first stage.The Company measures the preparation for loss according to the expected credit loss in the next 12 months. Where the credit risk
has increased significantly since the initial confirmation but the credit impairment has not occurred the financial instrument is in
the second stage. Where a credit impairment has occurred since the initial confirmation of the financial instrument it shall be in
the third stage and the Company shall prepare for measuring the expected credit loss of the whole survival period of the
instrument.For financial instruments with low credit risk on the balance sheet date the Company assumes that the credit risk has not
increased significantly since the initial recognition and measures the loss provision based on the expected credit losses in the next
12 months.
For financial instruments that are in the first and second stages and with lower credit risk the Company calculates interest
income based on their book balances and actual interest rates without deduction for impairment provision. For financial
instruments in the third stage interest income is calculated based on the amortized cost and the actual interest rate after the book
balance minus the provision for impairment.Regarding bills receivable accounts receivable and financing receivables regardless of whether there is a significant
financing component the Company measures the loss provision based on the expected credit losses throughout the duration.Accounts receivable/contract assets
Where there is objective evidence of impairment as well as other receivable instruments receivables other receivables
receivables financing and long-term receivables applicable to individual assessments separate impairment tests are performed to
confirm expected credit losses and prepare individual impairment. For notes receivable accounts receivable other receivables
financing of receivables long-term receivables and contract assets for which there is no objective evidence of impairment or
when individual financial assets cannot be assessed at a reasonable cost the Company divides bills receivable accounts receivable
other receivables receivable financing long-term receivables and contract assets into several combinations based on credit risk
characteristics and calculates expected credit losses on the basis of the combination. The basis for determining the combination is
as follows:
85Interim Report 2025 of China Fangda Group Co. Ltd.
The basis for determining the combination of notes receivable is as follows:
Notes Receivable Combination 1 Commercial Acceptance Bill
Notes Receivable Combination 2 Bank Acceptance Bill
For Notes receivable divided into portfolios the Company refers to historical credit loss experience combined with current
conditions and predictions of future economic conditions and calculates through default risk exposure and expected credit loss
rate within the next 12 months or the entire duration Expected credit losses.The basis for determining the combination of accounts receivable is as follows:
Accounts receivable combination 1 Accounts receivable business
Accounts receivable combination 2 Real estate receivable business
Accounts receivable combination 3 Others receivable business
Other receivable portfolio 4 Receivables from related parties within the scope of consolidation
For the accounts receivable divided into a combination the Company refers to the historical credit loss experience
combined with the current situation and the forecast of the future economic situation compiles the account receivable age and the
whole expected credit loss rate table and calculates the expected credit loss.The basis for determining the combination of other receivables is as follows:
Other receivable portfolio 1 Interest receivable
Portfolio of other receivables 2 Dividends receivable
Other combinations of receivables 3 Deposit and margin receivable
Other receivable portfolio 4 Receivable advances
Combination of other receivables 5 Value-added tax receivable is increased and refunded
Other receivable portfolio 6 Receivables from related parties within the scope of consolidation
Other receivables portfolio 7 Other receivables
For other receivables divided into portfolios the Company refers to historical credit loss experience combined with current
conditions and predictions of future economic conditions and calculates through default risk exposure and expected credit loss
rate within the next 12 months or the entire duration Expected credit losses.
86Interim Report 2025 of China Fangda Group Co. Ltd.
The basis for determining the combination of receivables financing is as follows:
Receivables financing portfolio 1 bank acceptance bill
For Notes receivable divided into portfolios the Company refers to historical credit loss experience combined with current
conditions and predictions of future economic conditions and calculates through default risk exposure and expected credit loss
rate within the next 12 months or the entire duration Expected credit losses.The basis for determining the portfolio of contract assets is as follows:
Contract assets portfolio 1 conditional collection right of sales
Contract assets portfolio 2 Completed and unsettled project not meeting collection conditions
Contract assets portfolio 3 Quality guarantee deposit not meeting collection conditions
For contract assets divided into portfolios the Company refers to historical credit loss experience combined with current
conditions and predictions of future economic conditions and calculates through default risk exposure and expected credit loss
rate within the next 12 months or the entire duration Expected credit losses.Other debt investment
For other receivables divided into portfolios the Company refers to historical credit loss experience combined with current
conditions and predictions of future economic conditions and calculates through default risk exposure and expected credit loss
rate within the next 12 months or the entire duration Expected credit losses.* Lower credit risk
If the risk of default on financial instruments is low the borrower's ability to meet its contractual cash flow obligations in
the short term is strong and even if the economic situation and operating environment are adversely changed over a long period of
time it may not necessarily reduce the receivables' performance of their contractual cash. The ability of the flow obligation the
financial instrument is considered to have a lower credit risk.* Significant increase in credit risk
The Company compares the default probability of the financial instrument during the expected lifetime determined by the
balance sheet date with the default probability of the expected lifetime during the initial confirmation to determine the relative
probability of the default probability of the financial instrument during the expected lifetime Changes to assess whether the credit
risk of financial instruments has increased significantly since initial recognition.
87Interim Report 2025 of China Fangda Group Co. Ltd.
In determining whether the credit risk has increased significantly since the initial recognition the Company considers
reasonable and evidenced information including forward-looking information that can be obtained without unnecessary
additional costs or effort. The information considered by the Company includes:
A. Significant changes in internal price indicators resulting from changes in credit risk;
B. Adverse changes in business financial or economic conditions that are expected to cause significant changes in the
debtor's ability to perform its debt service obligations;
C. Whether the actual or expected operating results of the debtor have changed significantly; whether the regulatory
economic or technical environment of the debtor has undergone significant adverse changes;
D. Whether there is a significant change in the value of the collateral used as debt collateral or the guarantee provided by a
third party or the quality of credit enhancement. These changes are expected to reduce the debtor's economic motivation for
repayment within the time limit specified in the contract or affect the probability of default;
E. Whether there is a significant change in the economic motivation that is expected to reduce the debtor's repayment
according to the contractual deadline;
F. Anticipated changes to the loan contract including whether the expected violation of the contract may result in the
exemption or revision of contract obligations granting interest-free periods rising interest rates requiring additional collateral or
guarantees or making other changes to the contractual framework of financial instruments change;
G. Whether the expected performance and repayment behavior of the debtor has changed significantly;
H. Whether the contract payment is overdue for more than (including) 30 days.Based on the nature of financial instruments the Company assesses whether credit risk has increased significantly on the
basis of a single financial instrument or combination of financial instruments. When conducting an assessment based on a
combination of financial instruments the Company can classify financial instruments based on common credit risk characteristics
such as overdue information and credit risk ratings.If the overdue period exceeds 30 days the Company has determined that the credit risk of financial instruments has
increased significantly. Unless the Company does not have to pay excessive costs or efforts to obtain reasonable and warranted
information it proves that although it has exceeded the time limit of 30 days agreed upon in the Contract credit risks have not
increased significantly since the initial confirmation.* Financial assets with credit impairment
88Interim Report 2025 of China Fangda Group Co. Ltd.
The Company assesses on the balance sheet date whether financial assets measured at amortized cost and credit investments
measured at fair value and whose changes are included in other comprehensive income have undergone credit impairment. When
one or more events that adversely affect the expected future cash flows of a financial asset occur the financial asset becomes a
financial asset that has suffered a credit impairment. Evidence that credit impairment has occurred in financial assets includes the
following observable information:
Major financial difficulties have occurred to the issuer or the debtor; Breach of contract by the debtor such as payment of
interest or default or overdue of principal; (B) The concession that the debtor would not make under any other circumstances for
economic or contractual considerations relating to the financial difficulties of the debtor; The debtor is likely to be bankrupt or
undertake other financial restructuring; The financial difficulties of the issuer or debtor lead to the disappearance of the active
market for the financial asset; To purchase or generate a financial asset at a substantial discount which reflects the fact that a
credit loss has occurred.* Presentation of expected credit loss measurement
In order to reflect the changes in the credit risk of financial instruments since the initial recognition the Company re-
measures the expected credit losses on each balance sheet date and the increase or reversal of the loss provision resulting
therefrom is included as an impairment loss or gain. Current profit and loss. For financial assets measured at amortized cost the
loss allowance offsets the book value of the financial asset listed on the balance sheet; for debt investments measured at fair value
and whose changes are included in other comprehensive income the Company Recognition of its loss provisions in gains does not
offset the book value of the financial asset.* Canceled
If it is no longer reasonably expected that the contract cash flow of the financial assets will be fully or partially recovered
the book balance of the financial assets will be directly reduced. Such write-off constitute the derecognization of related financial
assets. This usually occurs when the Company determines that the debtor has no assets or sources of income that generate
sufficient cash flow to cover the amount that will be written down.If the financial assets that have been written down are recovered in the future the reversal of the impairment loss is included
in the profit or loss of the current period.
(6) Transfer of financial assets
The transfer of financial assets refers to the following two situations:
89Interim Report 2025 of China Fangda Group Co. Ltd.
A. Transfer the contractual right to receive cash flow of financial assets to another party;
B. Transfers the financial assets to the other party in whole or in part but reserves the contractual right to collect the cash
flow of the financial assets and undertakes the contractual obligation to pay the collected cash flow to one or more recipients.* De-identification of transferred financial assets
Those who have transferred almost all risks and rewards in the ownership of financial assets to the transferee or have
neither transferred nor retained almost all the risks and rewards in the ownership of financial assets but have given up control of
the financial assets terminate the confirmation The financial asset.In determining whether control over the transferred financial asset has been waived the actual capacity of the transferor to
sell the financial asset is determined. If the transferor is able to sell the transferred financial assets wholly to a third party that does
not have a relationship with them and has no additional conditions to limit the sale it indicates the Company has waived control
over the financial assets.The Company pays attention to the essence of financial asset transfer when judging whether financial asset transfer meets
the condition of financial asset termination.If the overall transfer of financial assets meets the conditions for termination of confirmation the difference between the
following two amounts is included in the current profit and loss:
A. Continuing identification of transferred Book value；
B. The sum of the amount received as a result of the transfer and the amount accrued as a result of the change in the fair
value of the transfer in respect of the termination recognized portion of the amount previously charged directly to the other
consolidated proceeds (the financial assets involved in the transfer are those classified in accordance with Article 18 of Enterprise
Accounting Standard No. 22 - Financial Instruments Recognition and Measurement as measured by the fair value and whose
change is charged to the other consolidated proceeds).If the partial transfer of financial assets meets the conditions for derecognization the book value of the entire transferred
financial assets will be included in the derecognized part and the unterminated part (in this case the retained service assets are
regarded as part of the continued recognition of financial assets) Between them they are apportioned according to their respective
relative fair values on the transfer date and the difference between the following two amounts is included in the current profit and
loss:
A. Termination of the book value of the recognized portion on the date of derecognization;
90Interim Report 2025 of China Fangda Group Co. Ltd.
B. The sum of the amount received as a result of the transfer and the amount accrued as a result of the change in the fair
value of the transfer in respect of the termination recognized portion of the amount previously charged to the other consolidated
proceeds (the financial assets involved in the transfer are those classified in accordance with Article 18 of Enterprise Accounting
Standard No. 22 - Financial Instruments Recognition and Measurement as measured by the fair value and whose change is charged
to the other consolidated proceeds).* Continue to be involved in the transferred financial assets
If neither transfer nor retain almost all the risks and rewards of the ownership of financial assets and have not given up
control of the financial assets the relevant financial assets should be confirmed according to the extent of their continued
involvement in the transferred financial assets and the relevant liabilities should be recognized accordingly.The extent to which the transferred financial assets continue to be involved refers to the extent to which the enterprise
undertakes the risk or compensation of the value change of the transferred financial assets.(III) Continuing identification of transferred financial assets
Where almost all risks and remuneration in relation to ownership of the transferred financial assets are retained the whole
of the transferred financial assets shall continue to be recognized and the consideration received shall be recognized as a financial
liability.The financial asset and the recognized related financial liabilities shall not offset each other. In the subsequent accounting
period the enterprise shall continue to recognize the income (or gain) generated by the financial asset and the costs (or losses)
incurred by the financial liability.
(7) Deduction of financial assets and liabilities
Financial assets and financial liabilities should be listed separately in the balance sheet and cannot be offset against each
other. However if the following conditions are met the net amount offset by each other is listed in the balance sheet:
The Company has a statutory right to offset the confirmed amount and such legal right is currently enforceable;
The Company plans to settle the net assets or realize the financial assets and liquidate the financial liabilities at the same
time.The transferring party shall not offset the transferred financial assets and related liabilities if it does not meet the conditions
for terminating the recognition.
(8) Recognition of fair value of Finance instruments
91Interim Report 2025 of China Fangda Group Co. Ltd.
For the method for determining the fair value of financial assets and financial liabilities see 33 (3) in Chapter VIII V.Important accounting policies and accounting estimates.
11. Notes receivable
See Chapter VIII V Important Accounting Policies and Accounting Estimates 10. Financial Tools.
12. Account receivable
See Chapter VIII V Important Accounting Policies and Accounting Estimates 10. Financial Tools.The Company needs to comply with the disclosure requirements of the decoration and decoration industry in the Guidelines
for the Self-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.
13. Receivable financing
See Chapter VIII V Important Accounting Policies and Accounting Estimates 10. Financial Tools.
14. Other receivables
See Chapter VIII V Important Accounting Policies and Accounting Estimates 10. Financial Tools.
15. Contract assets
The Company presents contract assets or liabilities in the balance sheet according to the relationship between performance
obligation and customer payment. The consideration for which the Company is entitled to receive (subject to factors other than the
passage of time) for the transfer of goods or the provision of services to customers is listed as contract assets. The Company's
obligation to transfer goods or provide services to customers for consideration received or receivable from customers is listed as
contractual liabilities.Contract assets and contract liabilities are listed separately in the balance sheet. Contract assets and contract liabilities under
the same contract are listed in net amount. If the net amount is the debit balance it shall be listed in "contract assets" or "other non
current assets" according to its liquidity; if the net amount is the credit balance it shall be listed in "contract liabilities" or "other
non current liabilities" according to its liquidity. Contract assets and contract liabilities under different contracts cannot offset each
other.For the determination method and accounting treatment method of the Company's expected credit loss of contract assets see
10. Financial instruments in Chapter VIII V. Important accounting policies and accounting estimates.
92Interim Report 2025 of China Fangda Group Co. Ltd.
16. Inventories
(1) Classification of inventories
Inventory refers to the finished products or commodities held by the Company for sale in daily activities the products in
process of production the materials and materials consumed in the process of production or providing labor services including
entrusted processing materials raw materials products in process materials in transit stored goods low value consumables
development costs development products and contract performance costs etc.
(2) Pricing of delivering inventory
Inventories are measured at cost when procured. Raw materials products in process and commodity stocks in transit are
measured by the weighted average method.The inventory of real estate business mainly includes inventory materials development costs development products etc.The actual costs of development products include land transfer payment infrastructure and facility costs installation engineering
costs borrows before completion of the development and other costs during the development process. The special maintenance
funds collected in the first period are included in the development overheads. When the control right of development products is
transferred the individual valuation method is used to determine its actual cost.
(3) Inventory system
The Company inventory adopts the perpetual inventory system counting at least once a year the inventory profit and loss
amount is included in the current year's profit and loss.
(4) Criteria for recognizing and providing for provision for decline in value of inventories
On the balance sheet date inventories are accounted depending on which is lower between the cost and the net realizable
value. If the cost is higher than the net realizable value the impairment provision will be made.The realizable net value of inventory should be recognized based on solid evidence with the purpose of the inventory and
after-balance-sheet-date events taken into consideration.
(1) In the course of normal production and operation the net realizable value of finished goods commodities and materials
directly used for sale shall be determined by the estimated price of the inventory minus the estimated cost of sale and related taxes.The inventory held for the execution of a sales contract or a labor contract shall be measured on the basis of the contract price as
its net realizable value; If the quantity held is greater than the quantity ordered under the sales contract the net realizable value of
93Interim Report 2025 of China Fangda Group Co. Ltd.
the excess inventory is measured on the basis of the general sales price. For materials used for sale the market price shall be used
as the measurement basis for the net realizable value.* In the normal production and operation process the inventory of materials that need to be processed is determined by the
amount of the estimated selling price of the finished product minus the estimated cost to be incurred at the time of completion
estimated sales expenses and related taxes Realize the net value. If the net realizable value of the finished product produced by it is
higher than the cost the material is measured at cost; If the decrease in the price of the material indicates that the net realizable
value of the finished product is lower than the cost the material is measured as the net realizable value and the inventory is
prepared for a decrease based on its difference.* If the factors affecting the previous write-down of inventory value have disappeared on the balance sheet date the
amount of the write-down will be restored and transferred back within the amount of inventory depreciation reserve that has been
accrued and the amount returned will be included in the current profit and loss.
(5) Methods of amortization of swing materials
Low-value consumables are amortized on on-off amortization basis at using.
17. Long-term share equity investment
The Group's long-term equity investment includes control on invested entities and significant impacts on equity investment.Invested entities on which the Group has significant impacts are associates of the Group.
(1) Basis for recognition of common control and major influence on invested entities
Common control refers to the common control of an arrangement in accordance with the relevant agreement and the
relevant activities of the arrangement must be agreed upon by the participants who share control. In determining whether there is
common control the first step is to determine whether all or a group of participants collectively control the arrangement which is
considered collective control by all or a group of participants if all or a group of participants must act together to determine the
activities associated with the arrangement. Secondly it is judged whether the decision on related activities of the arrangement must
be agreed by the participants who collectively control the arrangement. If there is a combination of two or more parties that can
collectively control an arrangement it does not constitute joint control. When judging whether there is joint control the protective
rights enjoyed are not considered.Major influence refers to the power to participate in decision-making of financial and operation policies of a company but
cannot control or jointly control the making of the policies. When considering whether the Company can impose significant
94Interim Report 2025 of China Fangda Group Co. Ltd.
impacts on the invested entity impacts of conversion of shares with voting rights held directly or indirectly by the investor and
voting rights that can be executed in this period held by the investor and other party into shares of the invested entity should be
considered.If the Company directly or through subsidiaries holds more than 20% (inclusive) but less than 50% of the shares with voting
rights of the invested entity unless there is clear evidence proving that the Company cannot participate the decision-making of
production and operation of the invested entity the Company has major influence on the invested entity.
(2) Recognition of initial investment costs
Long-term equity investments formed by merger of enterprises shall be determined in accordance with the following
provisions:
A. In the case of an enterprise merger under the same control where the merging party makes a valuation of the merger by
payment of cash transfer of non-cash assets or undertaking liabilities the share of the book value of the owner's interest in the
final controlling party's consolidated financial statements as the initial investment cost of the long-term equity investment at the
date of the merger. The difference between the initial investment cost of long-term equity investment and the cash paid the
transferred non-cash assets and the book value of the debt assumed shall be adjusted to the capital reserve; if the capital reserve is
insufficient to offset the retained earnings shall be adjusted;
Long-term equity investment generated by enterprise merger: for long-term equity investment obtained by merger of
enterprises under common control the obtained share of book value of the interests of the merged party's owner in the consolidate
financial statements on the merger date is costs; for long-term equity investment obtained by merger of enterprises not under
common control the merger cost is the investment cost. Adjust the capital reserve according to the difference between the initial
investment cost of long-term equity investment and the total face value of the issued shares. If the capital reserve is insufficient to
offset or reduce the retained income shall be adjusted;
For merger of entities under different control the merger cost is the fair value of the asset paid liability undertaken and
equity securities issued for exchanging of control power over the entities at the day of acquisition. Agency expenses and other
administrative expenses such as auditing legal consulting or appraisal services occurred relating to the merger of entities are
accounted into current income account when occurred.Long-term equity investments formed by merger of enterprises shall be determined in accordance with the following
provisions:
95Interim Report 2025 of China Fangda Group Co. Ltd.
For long-term equity investment obtained by cash the actually paid consideration is the initial investment cost. Initial
investment costs include expenses taxes and other necessary expenditures directly related to the acquisition of long-term equity
investments;
B. Long-term equity investments acquired from the issuance of interest securities are the initial investment costs based on
the fair value of the issue interest securities;
C. For long-term equity investments obtained through non-monetary asset exchanges if the exchange has commercial
substance and the fair value of the exchanged assets or exchanged assets can be reliably measured the fair value of the exchanged
assets and relevant taxes shall be used as the initial Investment cost the difference between the fair value and book value of the
swapped-out asset is included in the current profit and loss; if the non-monetary asset exchange does not meet the above two
conditions at the same time the book value of the swapped-out asset and relevant taxes will be used as the initial investment cost.D. Long-term equity investments acquired through debt restructuring determine their recorded value at the fair value of the
waived claims and other costs such as taxes directly attributable to the assets and account for the difference between the fair value
and the book value of the waived claims.
(3) Subsequent measurement and recognition of gain/loss
The Company uses the cost method to measure long-term share equity investment in which the Company can control the
invested entity; and uses the equity method to measure long-term share equity investment in which the Company has substantial
influence on the invested entity.* Cost
For the long-term equity investment measured on the cost basis except for the announced cash dividend or profit included
in the practical cost or price when the investment was made the cash dividends or profit distributed by the invested entity are
recognized as investment gains in the current gain/loss account.Equity
Gains from long-term equity investment measured by equity
When the equity method is used to measure long-term equity investment the investment cost will not be adjusted if the
investment cost of the long-term equity investment is larger than the share of fair value of the recognizable assets of the invested
entity. When it is smaller than the share of fair value of the recognizable assets of the invested entity the book value will be
adjusted and the difference is included in the current gains of the investment.
96Interim Report 2025 of China Fangda Group Co. Ltd.
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 shared or borne recognized as investment gain and other misc. income. The book value of the long-term equity investment is
adjusted accordingly. The book value of the long-term equity investment should be accordingly decreased based on the share of
profit or cash dividend announced by the invested entity; according to other changes in the owner's equity except for net profit and
loss other misc income and profit distribution of the invested entity adjust the book value of the long-term equity investment and
record it in the capital surplus (other capital surplus). When the share of the net gains that can be enjoyed is recognized it is
recognized after the net profit of the invested entity is adjusted based on the fair value of the recognizable assets of the invested
entity according to the Company's accounting policies and accounting period. Where the accounting policy and accounting period
adopted by the Invested unit are inconsistent with the Company the financial statements of the Invested unit shall be adjusted in
accordance with the accounting policy and accounting period of the Company and the investment income and other consolidated
income shall be recognized. Internal transaction gain not realized between the Company and affiliates is measured according to the
shareholding proportion and the investment gains is recognized after deduction. The unrealized internal transaction loss between
the Company and the invested entity is the impairment loss of transferred assets and should not be written off.Where substantial influence on invested entities is imposed or joint control is implemented due to increase in investment
the sum of the fair value of the original equity and increased investment on the conversion date is the initial investment cost under
the equity method. If the equity investment originally held is classified as other equity instrument investment the difference
between the fair value and the book value as well as the accumulated gains or losses originally included in other comprehensive
income shall be transferred out of other comprehensive income and included in retained income in the current period when the
equity method is adopted.Where joint control or substantial influence on invested entities is lost due to disposal of part of investment the remaining
equity after the disposal should be treated according to the Enterprise Accounting Standard No.22 – Recognition and Measurement
of Financial Instruments from the date of losing the joint control or substantial influence. The difference between the fair value
and book value should be accounted the profit and loss of the current period. For other misc. incomes of original share equity
investment determined using the equity method when the equity method is no longer used it should be treated based on the same
basis of the treatment of related assets or liability of the invested entities; the other owners' interests related to the original share
equity investment should be transferred to gain/loss of the current period.
(4) Equity investment held for sale
For the remaining equity investments not classified as assets held for sale the equity method is adopted for accounting
treatment.
97Interim Report 2025 of China Fangda Group Co. Ltd.
Equity investments classified as held for sale to associates that are no longer eligible to hold classified assets for sale are
retrospectively adjusted using the equity method starting from the date that they are classified as held for sale. The classification is
adjusted to hold the financial statements for the period to be sold.
(5) Impairment examination and providing of impairment provision
For investments in subsidiaries associates and joint ventures the method of accruing asset impairment is shown in 23.Long-term asset impairment in Chapter VIII V. Important accounting policies and accounting estimates.XVIII. Investment Real Estates
(1) Classification of investment real estate
Investment real estates are held for rent or capital appreciation or both. These include inter alia:
* Leased land using right
(2) the right to use the land that is transferred after holding and preparing for the increment.
* Leased building
(2) Measurement of investment real estate
For investment real estates with an active real estate transaction market and the Company can obtain market price and other
information of same or similar real estates to reasonably estimate the investment real estates' fair value the Company will use the
fair value mode to measure the investment real estates subsequently. Variations in fair value are accounted into the current
gain/loss account.The fair value of investment real estate is determined with reference to the current market prices of same or similar real
estates in active markets; when no such price is available with reference to the recent transaction prices and consideration of
factors including transaction background date and district to reasonably estimate the fair value; or based on the estimated lease
gains and present value of related cash flows.For investment real estate under construction (including investment real estate under construction for the first time) if the
fair value cannot be reliably determined but the expected fair value of the real estate after completion is continuously and reliably
obtained the investment real estate under construction is measured by cost. When the fair value can be measured reliably or after
completion (the earlier one) it is measured at fair value. For an investment real estate whose fair value is proven unable to be
98Interim Report 2025 of China Fangda Group Co. Ltd.
obtained continuously and reliably by objective evidence the real estate will be measured at cost basis until it is disposed and no
residual value remains as assumed.If the cost model is used for subsequent measurement of investment real estate depreciation or amortization is calculated
according to the straight-line method after the cost of investment real estate minus accumulated impairment and net residual value.See Chapter VIII V. Important accounting policies for the method of accruing asset impairment 23. Impairment of long-term
assets in accounting estimates.The types of investment real estate estimated economic useful life and estimated net residual value rate are determined as
follows:
Type Service year (year) Residual rate % Annual depreciation rate %
Houses & buildings 20-50 10.00 1.80-4.50
19. Fixed assets
(1) Recognition conditions
Fixed assets are recognized at the actual cost of acquisition when the following conditions are met: (1) The economic benefits
associated with the fixed assets are likely to flow into the enterprise.Fixed assets are recognized at the actual cost of acquisition when the following conditions are met: (1) The economic benefits
associated with the fixed assets are likely to flow into the enterprise.* The cost of the fixed assets can be measured reliably.Overhaul cost generated by regular examination on fixed assets is recognized as fixed assets costs when there is evidence proving
that it meets fix assets recognition conditions. If not it will be accounted into the current gain/loss account.
(2) Depreciation method
Annual depreciation
Type Depreciation method Service year (year) Residual rate %
rate %
Houses & buildings Average age 20-50 10.00 1.80-4.50
Mechanical equipment Average age 10 10.00 9.00
Transportation
Average age 5 10.00 18.00
facilities
Electronics and other
Average age 5 10.00 18.00
devices
PV power plants Average age 20 5.00 4.75
99Interim Report 2025 of China Fangda Group Co. Ltd.
20. Construction in process
(1) Construction in progress is accounted for by project classification.
(2) Standard and timing for transferring construction in process into fixed assets
The full expenditure incurred on the construction-in-progress project as a fixed asset is recorded as the value of the asset
before the asset is constructed to the intended usable state. This includes construction costs the original cost of equipment other
necessary expenditures incurred in order to enable the construction works to reach the intended usable status and the borrowing
costs incurred for the specific borrowing of the project and the general borrowing expenses incurred before the assets reach the
intended usable status. Construction in process will be transferred to fixed assets when it reaches the preset service condition. The
fixed assets that have reached the intended usable state but have not been completed shall be transferred to the fixed assets
according to the estimated value according to the estimated value according to the estimated value according to the project budget
cost or actual project cost etc. The depreciation of the fixed assets shall be accrued according to the Company's fixed assets
depreciation policy. The original estimated value shall be adjusted according to the actual cost after the completion.XXI. Borrowing expenses
(1) Recognition principles for capitalization of borrowing expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing or production of asset satisfying the
conditions of capitalizing are capitalized and accounted as cost of related asset.
(1) Asset expenditure has occurred;
* The borrowing expense has already occurred;
* Purchasing or production activity which is necessary for the asset to reach the useful status has already started.Other interest on loans discounts or premiums and exchange differences are included in the income and loss incurred in the
current period.If the construction or production of assets satisfying the capitalizing conditions is suspended abnormally for over 3 months
capitalizing of borrowing expenses shall be suspended. During the normal suspension period borrowing expenses will be
capitalized continuously.When the asset satisfying the capitalizing conditions has reached its usable or sellable status capitalizing of borrowing
expenses shall be terminated.
100Interim Report 2025 of China Fangda Group Co. Ltd.
(2) Calculation of the capitalization amount of borrowing expense
Interest expenses generated by special borrowings less the interests income obtained from the deposit of unused borrowings
or investment gains from temporary investment is capitalized; the capitalization amount for general borrowing is determined based
on the capitalization rate which is the exceeding part of the accumulative assets expense over weighted average of the assets
expense of the special borrowing/used general borrowing.If the assets that are constructed or produced under the condition of capitalization occupy the general borrowing the interest
amount to be capitalized in the general borrowing shall be calculated and determined by multiplying the capital rate of the general
borrowing by the weighted average of the asset expenditure of the accumulated assets whose expenditure exceeds that of the
specialized borrowing. The capitalization ratio is the weighted average interest rate of general borrowings.XXII. Intangible assets
Recorded at the actual cost of acquisition.
(1) Amortization of intangible assets
* Useful life of intangible assets with limited useful life
Item Estimated useful life Basis
Land using right Term Use right assets
Reference to determine the lifetime of a company for which it
Trademarks and patents 10 years
can bring economic benefits
Reference to determine the lifetime of a company for which it
Proprietary technology 10 years
can bring economic benefits
Reference to determine the lifetime of a company for which it
Software 5. 10 years
can bring economic benefits
At the end of each year the Company will reexamine the useful life and amortization basis of intangible assets with limited
useful life. Upon review the service life and amortization methods of intangible assets at the end of the period are not different
from those previously estimated.
(2) Intangible assets which cannot be foreseeable to bring economic benefits to enterprises shall be regarded as intangible
assets whose useful life is uncertain. For intangible assets with uncertain service life the Company reviews the service life of
101Interim Report 2025 of China Fangda Group Co. Ltd.
intangible assets with uncertain service life at the end of each year. If it is still uncertain after rechecking it shall conduct an
impairment test on the balance sheet date.* Amortization of intangible assets
For intangible assets with finite useful lives the Company determines their useful life upon acquisition and systematically
amortizes them using the straight-line method over their useful life. The amortization amount is included in the current profit or
loss of the benefiting project or added to the cost of the related asset. The specific amortization amount is the amount after the cost
is deducted from the estimated residual value. For fixed assets for which depreciation provision is made the depreciation rate will
be determined after the accumulative depreciation provision amount is deducted. The residual value of an intangible asset with
limited useful life is treated as zero except where a third party undertakes to purchase the intangible asset at the end of its useful
life or to obtain expected residual value information based on the active market which is likely to exist at the end of its useful life.Intangible assets with uncertain service life will not be amortized. At the end of each year the useful life of intangible assets
with uncertain useful life is reviewed and if there is evidence that the useful life of intangible assets is limited the useful life is
estimated and the system is reasonably amortized within the expected useful life.
(2) Scope of R&D expenditures and related accounting treatment
Specific standard for distinguish between research and development stage
* The Company takes the information and related preparatory activities for further development activities as the research
stage and the intangible assets expenditure in the research stage is included in the current profit and loss period.* The development activities carried out after the Company has completed the research stage as the development stage.Specific conditions for capitalization of expenditures in the development phase
Expenditures in the development phase can be recognized as intangible assets only when the following conditions are met:
A. It is technically feasible to complete the intangible asset so that it can be used or sold;
B. Have the intention to complete the intangible asset and use or sell it;
C. The way intangible assets generate economic benefits including the ability to prove that the products produced by the
intangible assets exist in the market or the intangible assets themselves exist in the market and the intangible assets will be used
internally which can prove their usefulness;
102Interim Report 2025 of China Fangda Group Co. Ltd.
D. Have sufficient technical financial and other resource support to complete the development of the intangible asset and
have the ability to use or sell the intangible asset;
E. The expenditure attributable to the development stage of the intangible asset can be reliably measured.
23. Assets impairment
The Group uses the cost mode to continue measuring the assets impairment to investment real estate fixed assets
construction in progress intangible assets and goodwill (except for the inventories investment real estate measured by the fair
value mode deferred income tax assets and financial assets). The method is determined as follows:
The Company judges whether there is a sign of impairment to assets on the balance sheet day. If such sign exists the
Company estimates the recoverable amount and conducts the impairment test. Impairment test is conducted annually for goodwill
generated by mergers and intangible assets that have not reached the useful condition no matter whether the impairment sign exists.The recoverable amount is determined by the higher of the net of fair value minus disposal expense and the present value of
the predicted future cash flow. The Company estimates the recoverable amount on the individual asset item basis; whether it is
hard to estimate the recoverable amount on the individual asset item basis determine the recoverable amount based on the asset
group that the assets belong to. The assets group is determined by whether the main cash flow generated by the Group is
independent from those generated by other assets or assets groups.When the recoverable amount of the assets or assets group is lower than its book value the Company writes down the book
value to the recoverable amount the write-down amount is accounted into the current income account and the assets impairment
provision is made.For goodwill impairment test the book value of goodwill generated by mergers is amortized through reasonable measures
since the purchase day to related asset groups; those cannot be amortized to related assets groups are amortized to related
combination of asset groups. The related asset groups or combination of asset groups refer to those that can benefit from the
synergistic effect of mergers and must not exceed to the reporting range determined by the Company.When the impairment test is conducted if there is sign of impairment to the asset group or combination of asset groups
related to goodwill first perform impair test for asset group or combination of asset groups without goodwill and calculate the
recoverable amount and recognize the related impairment loss. Then conduct impairment test on those with goodwill compare the
book value with recoverable amount. If the recoverable amount is lower than the book value recognize the impairment loss of the
goodwill.
103Interim Report 2025 of China Fangda Group Co. Ltd.
Once recognized the asset impairment loss cannot be written back in subsequent accounting period.
24. Long-term amortizable expenses
The long-term deferred expenses shall be used to calculate the expenses that have occurred but should be borne by the
Company in the current and subsequent periods with a amortization period of more than one year. The Company's long-term
deferred expenses are amortized averagely during the benefit period.
25. Contract liabilities
See 15. Contract assets in Chapter VIII V. Important Accounting Policies and Accounting Estimates for details.
26. Staff remuneration
(1) Accounting of operational leasing
* Basic salary of employees (salary bonus allowance subsidy)
In the accounting period for which the staff and workers provide services the Company shall confirm the actual short-term
remuneration as liabilities and shall account for the current income and loss except as required or permitted by other accounting
standards.* Employee welfare
The employee benefits incurred by the Company shall be included in the current profit and loss or related asset costs
according to the actual amount incurred. Where the employee's benefit is non-monetary it shall be measured on the basis of fair
value.* Social insurance premiums and housing accumulation funds such as health insurance premiums work injury premiums
birth insurance premiums trade union funds and staff and education funds
The Company pays the medical insurance premiums work injury insurance premiums birth insurance premiums etc. social
insurance premiums and housing accumulation funds for the staff and workers as well as the union funds and the staff and
workers education funds according to the regulations in the accounting period for which the staff and workers provide services
the corresponding salary amount of the staff and workers and confirms the corresponding liabilities which are included in the
current profit and loss or related asset costs.* Short-term paid leave
104Interim Report 2025 of China Fangda Group Co. Ltd.
The Company accumulates the salary of the employees who are absent from work with pay when the employees provide
service thus increasing their future right of absence with pay. The Company confirms the salary of the employee related to the
absence of non-cumulative salary during the actual absence accounting period.* Short-term profit share program
If the profit-sharing plan meets the following conditions at the same time the Company shall confirm the salary payable to
the staff and workers:
A. The legal or presumptive obligation of the enterprise to pay the remuneration of its employees as a result of past matters;
B. The amount of employee compensation obligations due to the profit sharing plan can be reliably estimated.
(2) Accounting of post-employment welfare
The Company's post-employment benefit plan is defined contribution plan. Defined contribution plans include basic
endowment insurance unemployment insurance etc. During the accounting period when employees provide services for them the
Company shall recognize the deposit amount calculated according to the defined deposit plan as liabilities and include it in the
current profits and losses or related asset costs.
(3) Accounting of dismiss welfare
If the Company provides termination benefits to employees the employee compensation liabilities arising from the
termination benefits shall be recognized at the earliest of the following two and shall be included in the current profit and loss:
* An enterprise may not unilaterally withdraw the resignation benefits provided for by the dismissal plan or reduction
proposal;
* When the enterprise recognizes the costs or expenses related to the reorganization involving the payment of resignation
benefits.
27. Anticipated liabilities
(1) Recognition standards of anticipated liabilities
When responsibilities occurred in connection to contingent issues and all of the following conditions are satisfied they are
recognized as expectable liability in the balance sheet:
* This responsibility is a current responsibility undertaken by the Company;
105Interim Report 2025 of China Fangda Group Co. Ltd.
* Execution of this responsibility may cause financial benefit outflow from the Company;
* Amount of the liability can be reliably measured.
(2) Measurement of anticipated liabilities
Expected liabilities are initially measured at the best estimation on the expenses to exercise the current responsibility and
with considerations to the relative risks uncertainty and periodic value of currency. On each balance sheet date review the book
value of the estimated liabilities. Where there is conclusive evidence that the book value does not reflect the current best estimate
the book value is adjusted to the current best estimate.
28. Revenue
(1) General principles
Income is the total inflow of economic benefits formed in the daily activities of the Company which will lead to the
increase of shareholders' equity and has nothing to do with the capital invested by shareholders.The Company has fulfilled the performance obligation in the contract that is the revenue is recognized when the customer
obtains the control right of relevant goods. To obtain the control right of the relevant commodity means to be able to dominate the
use of the commodity and obtain almost all the economic benefits from it.If there are two or more performance obligations in the contract the Company will allocate the transaction price to each
single performance obligation according to the relative proportion of the separate selling price of the goods or services promised
by each single performance obligation on the start date of the contract and measure the income according to the transaction price
allocated to each single performance obligation.The transaction price refers to the amount of consideration that the Company is expected to be entitled to receive due to the
transfer of goods or services to customers excluding the amount collected on behalf of a third party. When determining the
contract transaction price if there is a variable consideration the Company shall determine the best estimate of the variable
consideration according to the expected value or the most likely amount and include it in the transaction price with the amount not
exceeding the accumulated recognized income when the relevant uncertainty is eliminated which is most likely not to have a
significant reversal. If there is a significant financing component in the contract the Company will determine the transaction price
according to the amount payable in cash when the customer obtains the control right of the commodity. The difference between
the transaction price and the contract consideration will be amortized by the effective interest method during the contract period. If
106Interim Report 2025 of China Fangda Group Co. Ltd.
the interval between the control right transfer and the customer's payment is less than one year the Company will not consider the
financing component Points.If one of the following conditions is met the performance obligation shall be performed within a certain period of time;
otherwise the performance obligation shall be performed at a certain point of time:
* When the customer performs the contract in the Company he obtains and consumes the economic benefits brought by
the Company's performance;
* Customers can control the goods under construction during the performance of the contract;
* The goods produced by the Company in the process of performance have irreplaceable uses and the Company has the
right to collect money for the performance part that has been completed so far during the whole contract period.For the performance obligations performed within a certain period of time the Company shall recognize the revenue
according to the performance progress within that period except that the performance progress cannot be reasonably determined.The Company determines the progress of performance for the provision of services on the basis of the input (or output) method.When the progress of performance cannot be reasonably determined if the cost incurred by the Company is expected to be
compensated the revenue shall be recognized according to the amount of cost incurred until the progress of performance can be
reasonably determined.For the performance obligation performed at a certain time point the Company recognizes the revenue at the time point
when the customer obtains the control right of relevant goods. In determining whether a customer has acquired control of goods or
services the Company will consider the following signs:
* The Company has the right to receive payment for the goods or services that is the customer has the obligation to pay
for the goods;
* The Company has transferred the legal ownership of the goods to the customer that is the customer has the legal
ownership of the goods;
* The Company has transferred the goods in kind to the customer that is the customer has possessed the goods in kind;
* The Company has transferred the main risks and rewards of the ownership of the goods to the customer that is the
customer has obtained the main risks and rewards of the ownership of the goods;
* The product has been accepted by the customer.Sales return clause
107Interim Report 2025 of China Fangda Group Co. Ltd.
For the sales with sales return clauses when the customer obtains the control right of the relevant goods the Company shall
recognize the revenue according to the amount of consideration it is entitled to obtain due to the transfer of the goods to the
customer and recognize the amount expected to be returned due to the sales return as the estimated liability; at the same time the
Company shall deduct the estimated cost of recovering the goods according to the book value of the expected returned goods at the
time of transfer( The balance after deducting the value of the returned goods is recognized as an asset that is the cost of return
receivable which is carried forward by deducting the net cost of the above assets according to the book value of the transferred
goods at the time of transfer. On each balance sheet date the Company re estimates the return of future sales and re measures the
above assets and liabilities.Warranty obligations
According to the contract and legal provisions the Company provides quality assurance for the goods sold and the projects
constructed. For the guarantee quality assurance to ensure that the goods sold meet the established standards the Company
conducts accounting treatment in accordance with the accounting standards for Business Enterprises No. 13 - contingencies. For
the service quality assurance which provides a separate service in addition to guaranteeing that the goods sold meet the established
standards the Company takes it as a single performance obligation allocates part of the transaction price to the service quality
assurance according to the relative proportion of the separate selling price of the goods and service quality assurance and
recognizes the revenue when the customer obtains the service control right. When evaluating whether the quality assurance
provides a separate service in addition to assuring customers that the goods sold meet the established standards the Company
considers whether the quality assurance is a statutory requirement the quality assurance period and the nature of the Company's
commitment to perform the task.Customer consideration payable
If there is consideration payable to the customer in the contract unless the consideration is to obtain other clearly
distinguishable goods or services from the customer the Company will offset the transaction price with the consideration payable
and offset the current income at the later time of confirming the relevant income or paying (or promising to pay) the customer's
consideration.Contractual rights not exercised by customers
If the Company advances sales of goods or services to customers the amount shall be recognized as liabilities first and then
converted into income when relevant performance obligations are fulfilled. When the Company does not need to return the
advance payment and the customer may give up all or part of the contract rights if the Company expects to have the right to obtain
108Interim Report 2025 of China Fangda Group Co. Ltd.
the amount related to the contract rights given up by the customer the above amount shall be recognized as income in proportion
according to the mode of the customer exercising the contract rights; otherwise the Company only has the very low possibility of
the customer requiring to perform the remaining performance obligations The relevant balance of the above liabilities is converted
into income.Contract change
When the construction contract between the Company and the customer is changed:
* If the contract change increases the clearly distinguishable construction service and contract price and the new contract
price reflects the separate price of the new construction service the Company will treat the contract change as a separate contract
for accounting;
* If the contract change does not belong to the above-mentioned situation (1) and there is a clear distinction between the
transferred construction service and the non transferred construction service on the date of contract change the Company will
regard it as the termination of the original contract and at the same time combine the non performance part of the original
contract and the contract change part into a new contract for accounting treatment;
* If the contract change does not belong to the above situation (1) and there is no clear distinction between the transferred
construction services and the non transferred construction services on the date of contract change the Company will take the
contract change part as an integral part of the original contract for accounting treatment and the resulting impact on the recognized
income will be adjusted to the current income on the date of contract change.
(2) The specific methods of revenue recognition of the Company are as follows:
* Commodity sales contract
The commodity sales contract between the company and the customer includes the performance obligation of transferring
curtain wall materials screen door materials electric energy etc. which belongs to the performance obligation at a certain time
point.Revenue from domestic sales of products is recognized at the time when the customer obtains the right of control of the
goods on the basis of comprehensive consideration of the following factors: the Company has delivered the products to the
customer according to the contract the customer has accepted the goods the payment for goods has been recovered or the receipt
has been obtained and the relevant economic benefits are likely to flow in the main risks and rewards of the ownership of the
goods have been transferred the legal ownership has been transferred;
109Interim Report 2025 of China Fangda Group Co. Ltd.
The following conditions should be met for the recognition of export product revenue: the Company has declared the
product according to the contract obtained the bill of lading collected the payment for goods or obtained the receipt certificate
and the relevant economic benefits are likely to flow in the main risks and rewards of the ownership of goods have been
transferred and the legal ownership of goods has been transferred.* Service contract
The service contract between the Company and its customers includes the performance obligations of metro platform screen
door operation maintenance curtain wall maintenance and property services. As the Company's performance at the same time the
customers obtain and consume the economic benefits brought by the Company's performance the Company takes it as the
performance obligation within a certain period of time and allocates it equally during the service provision period.* Engineering contract
The project contract between the Company and the customer includes the performance obligations of curtain wall project
and metro platform screen door project construction. As the customer can control the goods under construction in the process of
the Company's performance the Company takes them as the performance obligations within a certain period of time and
recognizes the income according to the performance progress except that the performance progress cannot be reasonably
determined. The Company determines the performance schedule of providing construction services according to the input method.The performance schedule shall be determined according to the proportion of the actual contract cost to the estimated total contract
cost.* Real estate sales contract
The income of the Company's real estate development business is recognized when the control of the property is transferred
to the customer. The income is recognized when the customer obtains the physical ownership or legal ownership of the completed
property and the Company has obtained the current right of collection and is likely to recover the consideration. When confirming
the contract transaction price if the financing component is significant the Company will adjust the contract commitment
consideration according to the financing component of the contract.
(3) Adoption of different business models for the same type of business involving different revenue recognition and
measurement methods
There is no difference in revenue recognition due to the adoption of different accounting policies for similar businesses.
110Interim Report 2025 of China Fangda Group Co. Ltd.
29. Contract costs
Contract cost is divided into contract performance cost and contract acquisition cost.The cost incurred by the Company in performing the contract shall be recognized as an asset when the following conditions
are met simultaneously:
The cost is directly related to a current or expected contract including direct labor direct materials manufacturing expenses
(or similar expenses) clearly borne by the customer and other costs incurred only due to the contract;
* This cost increases the Company's future resources for fulfilling its performance obligations.* The cost is expected to be recovered.If the incremental cost incurred by the Company to obtain the contract is expected to be recovered it shall be recognized as
an asset as the contract acquisition cost.The assets related to the contract cost shall be amortized on the same basis as the income from goods or services related to
the assets; however if the amortization period of the contract acquisition cost is less than one year the Company shall include it in
the current profit and loss when it occurs.If the book value of the assets related to the contract cost is higher than the difference between the following two items the
Company will make provision for impairment for the excess part and recognize it as the loss of asset impairment and further
consider whether the estimated liabilities related to the loss contract should be made:
* The residual consideration expected to be obtained due to the transfer of goods or services related to the asset;
* The estimated cost to be incurred for the transfer of the relevant goods or services.If the above provision for impairment of assets is subsequently reversed the book value of the asset after reversal shall not
exceed the book value of the asset on the reversal date without provision for impairment.The contract performance cost recognized as an asset with an amortization period of no more than one year or one normal
business cycle at the time of initial recognition shall be listed in the "inventory" item and the amortization period of no more than
one year or one normal business cycle at the time of initial recognition shall be listed in the "other non current assets" item.The contract acquisition cost recognized as an asset shall be listed in the item of "other current assets" when the
amortization period does not exceed one year or one normal business cycle at the time of initial recognition and listed in the item
111Interim Report 2025 of China Fangda Group Co. Ltd.
of "other non current assets" when the amortization period exceeds one year or one normal business cycle at the time of initial
recognition.
30. Government subsidy
(1) Government subsidy
Government subsidies are recognized when the following conditions are met:
* Requirements attached to government subsidies;
* The Company can receive government subsidies.
(2) Government subsidy
When a government subsidy is monetary capital it is measured at the received or receivable amount. None monetary capital
are measured at fair value; if no reliable fair value available recognized at RMB1.
(3) Recognition of government subsidies
* Assets-related
Government subsidies related to assets are obtained by the Company to purchase build or formulate in other manners long-
term assets; or subsidies related to benefits. If the asset-related government subsidy is recognized as deferred gain should be
recorded in gain and loss in the service life. Government subsidy measured at the nominal amount is accounted into current
income account. If the relevant assets are sold transferred scrapped or damaged before the end of their useful life the unallocated
relevant deferred income balance shall be transferred to the profit and loss of the current period of disposition of the assets.Gain-related government subsidy should be accounted as follows:
The Company divides government subsidies into assets-related and earnings-related government subsidies. Gain-related
government subsidy should be accounted as follows:
Subsidy that will be used to compensate related future costs or losses should be recognized as deferred gain and recorded in
the gain and loss of the current report and offset related cost;
Subsidy that is used to compensate existing cost or loss should be recorded in the gain and loss of the current period or
offset related cost.
112Interim Report 2025 of China Fangda Group Co. Ltd.
For government subsidies that include both asset-related and income-related parts separate different parts for accounting
treatment; It is difficult to distinguish between the overall classification of government subsidies related to benefits.Government subsidy related to routine operations should be recorded in other gains or offset related cost. Government
subsidy not related to routine operations should be recorded in non-operating income or expense.* Policy preferential loan discount
The policy-based preferential loan obtained has interest subsidy. If the government allocates the interest-subsidy funds to
the lending bank the loan amount actually received will be used as the entry value of the loan and the borrowing cost will be
calculated based on the loan principal and policy-based preferential interest rate.If the government allocates the interest-bearing funds directly to the Group discount interest will offset the borrowing costs.* Government subsidy refund
When a confirmed government subsidy needs to be returned the book value of the asset is adjusted against the book value
of the relevant asset at initial recognition. If there is a related deferred income balance the book balance of the related deferred
income is written off and the excess is credited to the current profit or loss; In other cases it is directly included in the current
profit and loss.
31. Differed income tax assets and differed income tax liabilities
The Company uses the temporary difference between the book value of the assets and liabilities on the balance sheet day
and the tax base and the liabilities method to recognize the deferred income tax. 26. Deferred income tax assets and deferred
income tax liabilities
(1) Deferred income tax assets
For deductible temporary discrepancies deductible losses and tax offsets that can be carried forward for future years the
impact on income tax is calculated at the estimated income tax rate for the transfer-back period and the impact is recognized as
deferred income tax assets provided that the Company is likely to obtain future taxable income for deductible temporary
discrepancies deductible losses and tax offsets.At the same time the impact on income tax of deductible temporary discrepancies resulting from the initial recognition of
assets or liabilities in transactions or matters with the following characteristics is inconclusive as deferred income tax assets:
A. The transaction is not a business combination;
113Interim Report 2025 of China Fangda Group Co. Ltd.
B. the transaction is not a merger and the transaction does not affect the accounting profit or taxable proceeds;
However for individual transactions that simultaneously meet the above two conditions and result in equal taxable
temporary differences and deductible temporary differences upon initial recognition of assets and liabilities the exemption from
initial recognition of deferred tax liabilities and deferred tax assets does not apply. For taxable temporary differences and
deductible temporary differences arising from the initial recognition of assets and liabilities in such transactions the Company
recognizes the corresponding deferred tax liabilities and deferred tax assets at the time of the transaction.In the event of temporary discrepancy of deductible investment related to subsidiaries joint ventures and joint ventures and
meeting the following two conditions the amount of impact (talent) on income tax shall be deemed as deferred income tax assets:
A. Temporary discrepancies are likely to be reversed in the foreseeable future;
B. In the future it is likely to obtain taxable income that can be used to offset the deductible temporary differences;
On the balance sheet date if there is conclusive evidence that sufficient taxable income is likely to be obtained in the future
to offset the deductible temporary differences the deferred income tax assets that have not been recognized in the previous period
are recognized.On the balance sheet day the Company re-examines the book value of the deferred income tax assets. If it is unlikely to
have adequate taxable proceeds to reduce the benefits of the deferred income tax assets less the deferred income tax assets' book
value. When there is adequate taxable proceeds the lessened amount will be reversed.
(2) Deferred income tax assets
All provisional differences in taxable income of the Company shall be measured on the basis of the estimated income tax
rate for the period of transfer-back and shall be recognized as deferred income tax liabilities except that:
At the same time the impact on income tax of deductible temporary discrepancies resulting the initial recognition of assets
or liabilities in transactions or matters with the following characteristics is inconclusive as deferred income tax Liabilities:
A. Initial recognition of goodwill;
B. Initial recognition of goodwill or of assets or liabilities generated in transactions with the following features: the
transaction is not a merger and the transaction does not affect the accounting profit or taxable proceeds;
* In the event of temporary discrepancy of deductible investment related to subsidiaries Joint venture joint ventures and
meeting the two conditions the amount of impact (talent) on income tax shall be deemed as deferred income tax assets:
114Interim Report 2025 of China Fangda Group Co. Ltd.
A. The Company is able to control the time of temporary discrepancy transfers;
B Temporary discrepancies are likely to be reversed in the foreseeable future;
(3) Deferred income tax assets
(1) Deferred income tax liabilities or assets associated with enterprise consolidation
Temporary difference of taxable tax or deductible temporary difference generated by enterprise merger under non-same
control. When deferred income tax liability or deferred income tax asset is recognized related deferred income tax expense (or
income) is usually adjusted as recognized goodwill in enterprise merger.* Amount of shares paid and accounted as owners' equity
Except for the adjustment goodwill generated by mergers or deferred income tax related to transactions or events directly
accounted into the owners' equity income tax is accounted as income tax expense into the current gain/loss account. The effects of
temporary discrepancy on income tax include the following: Other integrated benefits such as fair value change of financial assets
available for sale retroactive adjustment of accounting policy changes or retroactive restatement of accounting error correction
discrepancy to adjust the initial retained income and mixed financial instruments including liabilities and equity.* Compensation for losses and tax deductions
A. Compensable losses and tax deductions from the Company's own operations
Deductible losses refer to the losses calculated and determined in accordance with the provisions of the tax law that are
allowed to be made up with the taxable income of subsequent years. The uncovered losses (deductible losses) and tax deductions
that can be carried forward in accordance with the tax law are treated as deductible temporary differences. When it is expected that
sufficient taxable income is likely to be obtained in the future period when it is expected to be available to make up for losses or
tax deductions the corresponding deferred income tax assets are recognized within the limit of the taxable income that is likely to
be obtained while reducing the current period Income tax expense in the income statement.B. Compensable uncovered losses of the merged company due to business merger
In a business combination if the Company obtains the deductible temporary difference of the purchased party and does not
meet the deferred income tax asset recognition conditions on the purchase date it shall not be recognized. Within 12 months after
the purchase date if new or further information is obtained indicating that the relevant conditions on the purchase date already
exist and the economic benefits brought about by the temporary difference are expected to be deducted on the purchase date
confirm the relevant delivery. Deferred income tax assets while reducing goodwill if the goodwill is not enough to offset the
115Interim Report 2025 of China Fangda Group Co. Ltd.
difference is recognized as the current profit and loss; except for the above circumstances the deferred tax assets related to the
business combination are recognized and included in the current profit and loss.* Temporary difference caused by merger offset
If there is a temporary difference between the book value of assets and liabilities in the consolidated balance sheet and the
taxable basis of the taxpayer due to the offset of the unrealized internal sales gain or loss the deferred income tax asset or the
deferred income tax liability is confirmed in the consolidated balance sheet and the income tax expense in the consolidated profit
statement is adjusted with the exception of the deferred income tax related to the transaction or event directly included in the
owner's equity and the merger of the enterprise.* Share payment settled by equity
If the tax law provides for allowable per-tax deduction of expenses related to share payment within the period for which the
cost and expense are recognized in accordance with the accounting standards the Company shall calculate the tax basis and
temporary discrepancy based on the estimated per-tax deduction amount at the end of the accounting period and confirm the
relevant deferred income tax if it meets the conditions for confirmation. Of these the amount that can be deducted before tax in the
future exceeds the cost related to share payment recognized in accordance with the accounting standards and the excess income
tax shall be directly included in the owner's equity.* Dividends related to financial instruments classified as equity instruments
For financial instruments classified as equity instruments where the Company is the issuer any dividend expenditure that is
deductible for corporate income tax purposes according to tax policy is recognized for its income tax impact when the dividends
payable are recognized. If the distributed profits originate from transactions or events previously affecting profit or loss the
income tax impact of such dividends is included in the current profit or loss. If the distributed profits originate from transactions or
events previously recognized in equity the income tax impact of such dividends is included in equity items.
(4) Basis for presentation of deferred tax assets and deferred tax liabilities on a net basis
The deferred income tax assets and deferred income tax liabilities of the company are presented as a net amount after
offsetting when the following conditions are met simultaneously:
The Company has a legal right to offset current income tax assets and current income tax liabilities on a net basis.The deferred income tax assets and deferred income tax liabilities are related to income taxes levied by the same tax
authority on the same taxable entity or are related to income taxes levied by different tax authorities but the significant deferred
116Interim Report 2025 of China Fangda Group Co. Ltd.
income tax assets and deferred income tax liabilities will be settled on a net basis for current income taxes or simultaneous
acquisition of assets and settlement of liabilities within each future period in which the related taxable entity intends to settle the
current income tax assets and liabilities on a net basis.
32. Leasing
(1) Identification of lease
On the commencement date of the contract the company evaluates whether the contract is a lease or includes a lease. If one
party in the contract transfers the right to control the use of one or more identified assets within a certain period in exchange for
consideration the contract is a lease or includes a lease. In order to determine whether the contract transfers the right to control the
use of the identified assets within a certain period the company evaluates whether the customers in the contract have the right to
obtain almost all the economic benefits arising from the use of the identified assets during the use period and have the right to
dominate the use of the identified assets during the use period.
(2) Separate identification of lease
If the contract includes multiple separate leases at the same time the company will split the contract and conduct accounting
treatment for each separate lease. If the following conditions are met at the same time the right to use the identified asset
constitutes a separate lease in the contract: * the lessee can profit from using the asset alone or together with other easily
available resources;* The asset is not highly dependent or highly related to other assets in the contract.
(3) Accounting treatment method of the Company as lessee
On the beginning date of the lease term the Company recognizes the lease with a lease term of no more than 12 months and
excluding the purchase option as a short-term lease; When a single leased asset is a brand-new asset the lease with lower value is
recognized as a low value asset lease. If the Company sublets or expects to sublet the leased assets the original lease is not
recognized as a low value asset lease.For all short-term leases and low value asset leases the Company will record the lease payment amount into the relevant
asset cost or current profit and loss according to the straight-line method (or other systematic and reasonable methods) in each
period of the lease term.In addition to the above short-term leases and low value asset leases with simplified treatment the Company recognizes the
right to use assets and lease liabilities for the lease on the beginning date of the lease term.* Use right assets
117Interim Report 2025 of China Fangda Group Co. Ltd.
The term "right to use assets" refers to the right of the lessee to use the leased assets during the lease term.At the beginning of the lease term the right of use assets are initially measured at cost. This cost includes:
The initial measurement amount of lease liabilities;
For the lease payment paid on or before the beginning of the lease term if there is lease incentive the relevant amount of
lease incentive enjoyed shall be deducted;
Initial direct expenses incurred by the lessee;
The estimated cost incurred by the lessee for dismantling and removing the leased assets restoring the site where the
leased assets are located or restoring the leased assets to the state agreed in the lease terms. The Company recognizes
and measures the cost in accordance with the recognition standards and measurement methods of estimated liabilities.See 27. Estimated liabilities in Chapter VIII V. important accounting policies and accounting estimates for details. If the
above costs are incurred for the production of inventories they will be included in the cost of inventories.Depreciation of right of use assets is accrued by using the straight-line method. If it can be reasonably determined that the
ownership of the leased asset will be obtained at the expiration of the lease term the depreciation rate shall be determined
according to the asset category of the right to use and the estimated net residual value rate within the expected remaining service
life of the leased asset; If it is impossible to reasonably determine that the ownership of the leased asset will be obtained at the
expiration of the lease term the depreciation rate shall be determined according to the asset category of the right of use within the
shorter of the lease term and the remaining service life of the leased asset.* Lease liabilities
The lease liabilities are initially measured Company shall according to the present value of the unpaid lease payments at the
beginning of the lease term. The lease payment includes the following five items:
Fixed payment amount and substantial fixed payment amount. If there is lease incentive the relevant amount of lease
incentive shall be deducted;
Variable lease payments depending on index or ratio;
The exercise price of the purchase option provided that the lessee reasonably determines that the option will be
exercised;
The amount to be paid for exercising the option to terminate the lease provided that the lease term reflects that the lessee
will exercise the option to terminate the lease;
The amount expected to be paid according to the residual value of the guarantee provided by the lessee.When calculating the present value of lease payments the implicit interest rate of the lease is used as the discount rate. If
the implicit interest rate of the lease cannot be determined the incremental borrowing interest rate of the company is used as the
discount rate. The difference between the lease payment amount and its present value is regarded as unrecognized financing
expenses and the interest expenses are recognized according to the discount rate of the present value of the lease payment amount
118Interim Report 2025 of China Fangda Group Co. Ltd.
during each period of the lease term and included in the current profit and loss. The amount of variable lease payments not
included in the measurement of lease liabilities shall be included in the current profit and loss when actually incurred.After the beginning date of the lease term when the actual fixed payment amount changes the expected payable amount of
the guaranteed residual value changes the index or ratio used to determine the lease payment amount changes the evaluation
results or actual exercise of the purchase option renewal option or termination option changes the Company remeasures the lease
liability according to the present value of the changed lease payment amount And adjust the book value of the right to use assets
accordingly.
(4) Accounting treatment method of the Company as lessor
On the lease commencement date the Company classifies leases that have substantially transferred almost all the risks and
rewards related to the ownership of the leased assets as financial leases and all other leases are operating leases.* Operating lease
During each period of the lease term the Company recognizes the lease receipts as rental income according to the straight-
line method (or other systematic and reasonable methods) and the initial direct expenses incurred are capitalized amortized on the
same basis as the recognition of rental income and included in the current profit and loss by stages. The variable lease payments
obtained by the Company related to operating leases that are not included in the lease receipts are included in the current profits
and losses when actually incurred.* Finance lease
On the lease beginning date the Company recognizes the financial lease receivables according to the net amount of the
lease investment (the sum of the unsecured residual value and the present value of the lease receipts not received on the lease
beginning date discounted according to the lease embedded interest rate) and terminates the recognition of the financial lease
assets. During each period of the lease term the Company calculates and recognizes the interest income according to the interest
rate embedded in the lease.The amount of variable lease payments obtained by the Company that are not included in the measurement of net lease
investment shall be included in the current profit and loss when actually incurred.
(5) Accounting treatment of lease change
* Change of lease as a separate lease
119Interim Report 2025 of China Fangda Group Co. Ltd.
If the lease changes and meets the following conditions at the same time the Company will treat the lease change as a
separate lease for accounting: a. the lease change expands the lease scope by increasing the use right of one or more leased assets;
B. The increased consideration is equivalent to the amount adjusted according to the conditions of the contract at the separate price
for most of the expansion of the lease scope.* The lease change is not treated as a separate lease
A. The Company as lessee
On the effective date of the lease change the Company reconfirmed the lease term and discounted the changed lease
payment at the revised discount rate to re-measure the lease liability. When calculating the present value of the lease payment after
the change the implicit interest rate of the lease during the remaining lease period shall be used as the discount rate; If it is
impossible to determine the implicit interest rate of the lease for the remaining lease period the incremental loan interest rate on
the effective date of the lease change shall be used as the discount rate.The impact of the above lease liability adjustment shall be accounted for according to the following circumstances:
If the lease scope is reduced or the lease term is shortened due to the lease change the book value of the right to use
assets shall be reduced and the relevant gains or losses of partial or complete termination of the lease shall be included
in the current profits and losses;
For other lease changes the book value of the right to use assets shall be adjusted accordingly.The Company as leasor
If the operating lease is changed the Company will treat it as a new lease for accounting from the effective date of the
change and the amount of lease receipts received in advance or receivable related to the lease before the change is regarded as the
amount of new lease receipts.If the change of financial lease is not accounted for as a separate lease the Company will deal with the changed lease under
the following circumstances: if the change of lease takes effect on the lease commencement date and the lease will be classified as
an operating lease the Company will account for it as a new lease from the effective date of lease change and take the net lease
investment before the effective date of lease change as the book value of leased assets; If the lease change takes effect on the lease
commencement date the lease will be classified as a financial lease and the Company will conduct accounting treatment in
accordance with the provisions on modifying or renegotiating the contract.
(6) Sale and lease-back
120Interim Report 2025 of China Fangda Group Co. Ltd.
The Company assesses and determines whether the asset transfer in the sale and leaseback transaction is a sale in
accordance with the provisions of 28. Income in Chapter VIII V Important accounting policies and accounting estimates.
1 The Company as seller (lessee)
If the asset transfer in the sale and leaseback transaction does not belong to sales the Company will continue to recognize
the transferred assets recognize a financial liability equal to the transfer income and conduct accounting treatment for the
financial liability in accordance with 10。 Financial instruments in Chapter VIII V Important accounting policies and accountingestimates. If the asset transfer belongs to sales the Company measures the right to use assets formed by sale and leaseback
according to the part of the book value of the original assets related to the right to use obtained by leaseback and only recognizes
the relevant gains or losses on the rights transferred to the lessor.
2 The Company as buyer (lessor)
If the asset transfer in the sale and leaseback transaction does not belong to sales the company does not recognize the
transferred asset but recognizes a financial asset equal to the transfer income and carries out accounting treatment on the financial
asset in accordance with 10. Financial instruments in Chapter VIII V. Important accounting policies and accounting estimates. If
the asset transfer belongs to sales the Company shall conduct accounting treatment for asset purchase and asset lease in
accordance with other applicable accounting standards for business enterprises.
33. Other significant accounting policies and estimates
(1) Accounting of hedging
(1.1) Classification of inventories
The Company classifies hedges into fair value hedges and cash flow hedges.* Fair value hedge. It refers to hedging activities conducted to mitigate the risk of changes in the fair value of recognized
assets or liabilities unrecognized firm commitments or components of the aforementioned items. The fair value changes are
caused by specific risks that will impact the Company's profit or other comprehensive income.* Cash flow hedging refers to the hedging of cash flow risk. The change in cash flow is derived from specific risks
associated with recognized assets or liabilities expected transactions that are likely to occur or with respect to the components of
the above-mentioned project and will affect the profits and losses of the enterprise.
121Interim Report 2025 of China Fangda Group Co. Ltd.
(1.2) Hedging tools and hedged projects
Hedging means a financial instrument designated by the Company for the purpose of hedging whose fair value or cash flow
variation is expected to offset the fair value or cash flow variation of the hedged item including:
* Financial liabilities measured at fair value with variations accounted into current income account Check-out options can
only be used as a hedging tool if the option is hedged including those embedded in a hybrid contract. Derivatives embedded in a
hybrid contract but not split cannot be used as separate hedging tools.* Non-derivative financial assets or non-derivative financial liabilities that are measured at fair value and whose changes
are included in the current profit and loss but designated as fair value and whose changes are included in the current profit and
loss and their own credit risk changes caused by changes in fair value except for financial liabilities included in other
comprehensive income.Own equity instruments are not financial assets or financial liabilities and cannot be used as hedging instruments.A hedged item refers to an item that exposes the Company to the risk of changes in fair value or cash flow and is designated
as the hedged object and can be reliably measured. The Company designates the following individual projects project portfolios or
their components as hedged projects:
* Confirmed assets or liabilities.* Confirmed commitments that have not yet been confirmed. Confirmed commitment refers to a legally binding agreement
to exchange a specific amount of resources at an agreed price on a specific date or period in the future.* Expected transactions that are likely to occur. Anticipated transactions refer to transactions that have not yet been
committed but are expected to occur.* Net investment in overseas operations.The above-mentioned project components refer to the parts that are less than the overall fair value or cash flow changes of
the project. The Company designates the following project components or their combinations as hedged items:
* The part of the change in fair value or cash flow (risk component) that is only caused by one or more specific risks in the
122Interim Report 2025 of China Fangda Group Co. Ltd.
overall fair value or cash flow changes of the project. According to the assessment in a specific market environment the risk
component should be able to be individually identified and reliably measured. The risk component also includes the part where the
fair value or cash flow of the hedged item changes only above or below a specific price or other variables.* One or more selected contractual cash flows.* The component of the nominal amount of the project that is the specific part of the whole amount or quantity of the
project may be a certain proportion of the whole project or may be a certain level of the whole project. If a certain level includes
early repayment rights and the fair value of the early repayment rights is affected by changes in the risk of the hedge the level
shall not be designated as the hedged item of the fair value hedge but in the measurement of the hedged item except when the fair
value has included the influence of the prepayment right.
(1.3) Evaluation of hedging relationship
When the hedging relationship is initially specified the Group officially specifies the related hedging relationships with
official documents recording the hedging relationships risk management targets and hedging strategies. This document sets out
the hedging tools hedged items the nature of hedged risks and the Company's assessment of hedged effectiveness. Hedging
means a financial instrument designated by the Company for the purpose of hedging whose fair value or cash flow variation is
offset the fair value or cash flow variation of the hedged item including: Such hedges are continuously evaluated on and after the
initial specified date to meet the requirements for hedging validity.If the hedging instrument has expired been sold the contract is terminated or exercised (but the extension or replacement as
part of the hedging strategy is not treated as expired or contract termination) or the risk management objective changes resulting
in hedging The relationship no longer meets the risk management objectives or the economic relationship between the hedged
item and the hedging instrument no longer exists or the impact of credit risk begins to dominate in the value changes caused by
the economic relationship between the hedged item and the hedging instrument or when the hedge no longer meets the other
conditions of the hedge accounting method the Company terminates the use of hedge accounting.If the hedging relationship no longer meets the requirements for hedging effectiveness due to the hedging ratio but the risk
management objective of the designated hedging relationship has not changed the Company shall rebalance the hedging
relationship.
123Interim Report 2025 of China Fangda Group Co. Ltd.
(1.4) Revenue the of revenue recognition and measurement
If the conditions for applying hedge accounting method are met it shall be handled according to the following methods:
* Fair value hedging
Gains or losses arising from hedging instruments are recognized in the current period's income statement. If the hedging is
conducted for specified non-derivative equity investments (or components thereof) measured at fair value with changes in fair
value recognized in other comprehensive income gains or losses from the hedging instruments are recognized in other
comprehensive income. Gains or losses arising from the hedged items due to the hedging risk exposure are recognized in the
income statement. At the same time the carrying amount of the designated hedged items that are not measured at fair value is
adjusted. If the hedged item is a specified non-derivative equity investment (or component thereof) measured at fair value with
changes in fair value recognized in other comprehensive income gains or losses resulting from the hedging risk exposure are
recognized in other comprehensive income and the carrying amount of the hedged item has already been measured at fair value
and does not require adjustment.Regarding fair value hedges related to financial instruments (or components thereof) measured at amortized cost any
adjustments made to the carrying amount of the hedged item are amortized using the effective interest rate recalculated from the
date of the commencement of amortization and recognized in the income statement. The amortization date for adjustments should
begin from the adjustment date and should not be later than the point at which hedging gains and losses are adjusted upon
termination of the hedged item. For hedged items that are financial assets (or components thereof) measured at fair value with
changes in fair value recognized in other comprehensive income the accumulated hedging gains or losses should be amortized in
the same manner and recognized in the income statement. However the carrying amount of the financial assets (or components
thereof) should not be adjusted.For hedged items that are unrecognized firm commitments (or components thereof) the cumulative fair value changes
caused by the hedging risk after the hedging relationship is designated should be recognized as an asset or liability. The related
gains or losses should be recognized in the income statement. When fulfilling a firm commitment and acquiring an asset or
assuming a liability the initial recognized amount of the asset or liability should be adjusted to include the cumulative fair value
changes of the designated hedged item that have been recognized.* Cash flow hedge
124Interim Report 2025 of China Fangda Group Co. Ltd.
The part of hedging tool gains or losses that is valid for hedging is recognized as other comprehensive income as a cash
flow hedging reserve and the part that is invalid for hedging (that is other gains or losses after deducting other comprehensive
income) are counted Into the current profit and loss. The amount of cash flow hedging reserve is determined according to the
lower of the absolute amounts of the following two items:* accumulated gains or losses of hedging instruments since the hedging.The amount in the effective arbitrage is recognized by the accumulative gains or losses from the starting of arbitrage and
accumulative changes to the current value of future forecast cash flows from the start of arbitrage.If the expected transaction of the hedged asset is subsequently recognized as a non-financial asset or non-financial liability
or if the expected transaction of the non-financial asset or non-financial liability forms a defined commitment to the applicable fair
value hedge accounting the amount of the cash flow hedge reserve originally recognized in the other consolidated income is
transferred out to account for the initial recognized amount of the asset or liability. For the remaining cash flow hedges during the
same period when the expected cash flow to be hedged affects the profit and loss if the expected sales occur the cash flow hedge
reserve recognized in other comprehensive income is transferred out and included in the current profit and loss.
(2) Share Repurchase by the Company
* In the event of a reduction in the Company's share capital as approved by legal procedure the Company shall reduce the
share capital by the total amount of the written-off shares adjust the owner's equity by the difference between the price paid by the
purchased stocks (including transaction costs) and the total amount of the written-off shares offset the capital reserve (share
capital premium) surplus reserve and undistributed profits in turn; A portion of a capital reserve (share capital premium) that is
less than the total face value and less than the total face value.* The total expenditure of the repurchase shares of the Company which is managed as an inventory share before they are
canceled or transferred is converted to the cost of the inventory shares.* Increase in the capital reserve (capital premium) at the time of transfer of an inventory unit the portion of the transfer
income above the cost of the inventory unit; Lower than the inventory stock cost the capital reserve (share capital premium)
surplus reserve undistributed profits in turn.
(3) Measurement of Fair Value
Fair value refers to the amount of asset exchange or liabilities settlement by both transaction parties familiar with the
situation in a fair deal on a voluntary basis.
125Interim Report 2025 of China Fangda Group Co. Ltd.
The Company measures the fair value of related assets or liabilities at the prices in the main market. If there is no major
market the Company measures the fair value of the relevant assets or liabilities at the most favorable market prices. The Group
uses assumptions that market participants use to maximize their economic benefits when pricing the asset or liability.The main market refers to the market with the highest transaction volume and activity of the related assets or liabilities. The
most favorable market means the market that can sell the related assets at the highest amount or transfer the related liabilities at the
lowest amount after considering the transaction cost and transportation cost.For financial assets or liabilities in an active market The Company determines their fair value based on quotations in the
active market. If there is no active market the Company uses evaluation techniques to determine the fair value.For the measurement of non-financial assets at fair value the ability of market participants to use the assets for optimal
purposes to generate economic benefits or the ability to sell the assets to other market participants that can be used for optimal
purposes to generate economic benefits.* Valuation technology
The Company adopts valuation techniques that are applicable in the current period and are supported by sufficient data and
other information. The valuation techniques used mainly include market method income method and cost method. The Company
uses a method consistent with one or more of the valuation techniques to measure fair value. If multiple valuation techniques are
used to measure fair value the reasonableness of each valuation result shall be considered and the fair value shall be selected as
the most representative of fair value under the current circumstances. The amount of value is regarded as fair value.The Company equipment are applicable in the current circumstances and have sufficient available data and other
information to support the use of the relevant observable input values prioritized. Unobservable input values are used only when
the observable input value cannot be obtained or is not feasible. Observable input values are input values that can be obtained from
market data. The Group uses assumptions that market participants use to maximize their economic benefits when pricing the asset
or liability. Non-observable input values are input values that cannot be obtained from market data. The input value is obtained
based on the best information available on assumptions used by market participants in pricing the relevant asset or liability.* Fair value hierarchy
This company divides the input value used in fair value measurement into three levels and first uses the first level input
value then uses the second level input value and finally uses the third level input value. First level: quotation of same assets or
liabilities in an active market (unadjusted) The second level input value is a directly or indirectly observable input value of the
asset or liability in addition to the first level input value. The input value of the third level is the unobservable input value of the
126Interim Report 2025 of China Fangda Group Co. Ltd.
related asset or liability.
(4) Significant accounting judgment and estimate
The Company continuously reviews significant accounting judgment and estimate adopted for the reasonable forecast of
future events based on its historical experience and other factors. Significant accounting judgment and assumptions that may lead
to major adjustment of the book value of assets and liabilities in the next accounting year are listed as follows:
Classification of financial assets
The major judgments involved in the classification of financial assets include the analysis of business model and contract
cash flow characteristics.The company determines the business mode of managing financial assets at the level of financial asset portfolio taking into
account such factors as how to evaluate and report financial asset performance to key managers the risks that affect financial asset
performance and how to manage it and how to obtain remuneration for related business managers.When the company assesses whether the contractual cash flow of financial assets is consistent with the basic borrowing
arrangement there are the following main judgments: whether the principal may change due to early repayment and other reasons
during the duration of the period or the amount of change; whether the interest Including the time value of money credit risk
other basic borrowing risks and consideration of costs and profits. For example does the amount paid in advance reflect only the
unpaid principal and the interest based on the unpaid principal as well as the reasonable compensation paid for early termination
of the contract.Measurement of expected credit losses of accounts receivable
The Company calculates the expected credit loss of accounts receivable through the risk exposure of accounts receivable
default and the expected credit loss rate and determines the expected credit loss rate based on the default probability and the
default loss rate. When determining the expected credit loss rate the Company uses internal historical credit loss experience and
other data combined with current conditions and forward-looking information to adjust the historical data. When considering
forward-looking information the indicators used by the Company include the risks of economic downturn changes in the external
market environment technological environment and customer conditions. The Company regularly monitors and reviews
assumptions related to the calculation of expected credit losses.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
127Interim Report 2025 of China Fangda Group Co. Ltd.
tax loss. This requires the management to make a lot of judgment to forecast the time and amount of future taxable profit and
determine the amount of the deferred tax assets based on the taxation strategy.Income recognition
The Company's revenue from providing curtain wall construction and metro platform screen door installation services is
recognized over a period of time. The recognition of the income and profit of such engineering installation services depends on the
Company's estimation of the contract results and performance progress. If the actual amount of total revenue and total cost is
higher or lower than the estimated value of the management it will affect the amount of revenue and profit recognition of the
Company in the future.Engineering contract
The management shall make relevant judgment to confirm the income and expenses of project contracting business
according to the performance progress. If losses are expected to occur in the project contract such losses shall be recognized as
current expenses. The management of the Company estimates the possible losses according to the budget of the project contract.The Company determines the transaction price according to the terms of the contract and in combination with previous customary
practices and considers the influence of variable consideration major financing components in the contract and other factors.During the performance of the contract the Company continuously reviews the estimated total contract revenue and the estimated
total contract cost. When the initial estimate changes such as contract changes claims and awards the estimated total contract
revenue and the estimated total contract cost are revised. When the estimated total contract cost exceeds the total contract revenue
the main business cost and estimated liabilities shall be recognized according to the loss contract to be executed.Estimate of fair value
The Company uses fair value to measure investment real estate and needs to estimate the fair value of investment real estate
at least quarterly. This requires the management to reasonably estimate the fair value of the investment real estate with the help of
valuation experts.Development cost
128Interim Report 2025 of China Fangda Group Co. Ltd.
For property that has been handed over with income recognized but whose public facilities have not been constructed or not
been completed the management will estimate the development cost for the part that has not been started according to the budget
to reflect the operation result of the property sales.
34. Major changes in accounting policies and estimates
1. Changes in important accounting policies
□ Applicable□ Inapplicable
(2) Changes in major accounting estimates
□ Applicable□ Inapplicable
(3) Implementation of new accounting standards adjustment for the first time starting from 2025 and implementation of
financial statement related items at the beginning of the year for the first time
□ Applicable□ Inapplicable
VI. Taxation
1. Major taxes and tax rates
Tax Tax basis Tax rate
VAT Taxable income 1% 3% 5% 6% 9% 13%
City maintenance and construction tax Taxable turnover 1% 5% 7%
Education surtax Taxable turnover 3%
Local education surtax Taxable turnover 2%
Enterprise income tax See the following table
Tax rates applicable for different tax payers
Tax payer Income tax rate
The Company 25%
Shenzhen Fangda Jianke Co. Ltd. (hereinafter Fangda Jianke) 15%
Fangda Zhiyuan Technology Co. Ltd. (hereinafter Fangda Zhiyuan) 15%
Fangda New Material (Jiangxi) Co. Ltd. (hereinafter Fangda Jiangxi New Material) 25%
Chengdu Fangda Construction Technology Co. Ltd. (hereinafter Fangda Chengdu
15%
Technology)
Dongguan Fangda New Material Co. Ltd. (hereinafter Fangda Dongguan New
25%
Material)
Shenzhen Fangda Property Development Co. Ltd. (hereinafter Fangda Property
25%
Development)
Shenzhen Fangda New Energy Co. Ltd. (hereinafter Fangda New Energy) 25%
Shenzhen Fangda Property Development Co. Ltd. (hereinafter Fangda Property
25%
Development)
Jiangxi Fangda Property Development Co. Ltd. (hereinafter Fangda Jiangxi
25%
Property Development)
Pingxiang Fangda Luxin New Energy Co. Ltd. (hereinafter Fangda Luxin New
25%
Energy)
129Interim Report 2025 of China Fangda Group Co. Ltd.
Nanchang Xinjian Fangda New Energy Co. Ltd. (hereinafter Fangda Xinjian New
25%
Energy)
Dongguan Fangda New Energy Co. Ltd. (hereinafter Fangda Dongguan New
25%
Energy)
Shenzhen Qianhai Kechuangyuan Software Co. Lt.d (hereinafter Kechuangyuan
25%
Software)
Fangda Zhiyuan Technology (Hong Kong) Co. Ltd (Fangda Zhiyuan Hong Kong) 16.50%
Fangda Zhiyuan Technology (Wuhan) Co. Ltd (Fangda Wuhan Zhiyuan) 25%
Fangda Zhiyuan Technology (Nanchang) Co. Ltd (Fangda Nanchang Zhiyuan) 25%
Fangda Zhiyuan Railway Transportation Equipment (Dongguan) Co. Ltd.
25%
(hereinafter referred to as Fangda Zhiyuan Dongguan)
General Rail Technology Private Limited 17%
Shihui International Holding Co. Ltd. (hereinafter Fangda Shihui International) 0.00%
Shenzhen Hongjun Investment Co. Ltd. (hereinafter Fangda Hongjun Investment) 25%
Fangda Australia Pty Ltd (hereinafter Fangda Australia) 30%
Shanghai Fangda Zhijian Technology Co. Ltd. (hereinafter referred to as Fangda
15%
Shanghai Zhijian company)
Shenzhen Fangda Yunzhi Technology Co. Ltd. (hereinafter Fangda Yunzhi) 25%
Shanghai Fangda Jianzhi Technology Co. Ltd. (hereinafter Fangda Shanghai
25%
Jianzhi)
Shenzhen Zhongrong Litai Investment Co. Ltd. (Zhongrong Litai) 25%
Chengdu Fangda Curtain Wall Technology Co. Ltd. (hereinafter Fangda Chengdu
25%
Curtain Wall)
Fangda Southeast Asia Co. Ltd. (hereinafter Fangda Southeast Asia) 20%
Fangda Jianke (Hong Kong) Co. Ltd. (hereinafter Fangda Jianke Hong Kong) 16.50%
Shenzhen Fangda Yunzhu Technology Co. Ltd. (hereinafter Fangda Yunzhu) 15%
Shenzhen Yunzhu Testing Technology Co. Ltd. (Hereinafter Fangda Yunzhu
25%
Testing)
Jiangxi Fangda Intelligent Manufacturing Technology Co. Ltd. (hereinafter referred
15%
to as Fangda Intelligent Manufacturing Company)
Shenzhen Fangda Jianchuang Technology Co. Ltd. (hereinafter Fangda Jianchuang) 25%
Shenzhen Fangda Construction Technology Co. Ltd. (hereinafter referred to as
25%
Fangda Construction Technology Company)
Fangda Facade Singapore Pte Ltd (hereinafter referred to as Curtain Wall Singapore
17%
Company)
FANGDA FACADE PHILIPPINES INC. (hereinafter referred to as Curtain Wall
20%
Philippines Company)
GENERAL RAIL TECHNOLOGY PHILIPPINES INC. (hereinafter referred to as
25%
Zhiyuan Philippines Company)
FANGDA GULF DMCC (hereinafter referred to as Curtain Wall Gulf Company) 9%
GLOBAL MEGA INTERNATIONAL HOLDINGS LIMITED (hereinafter referred
20%
to as GLOBAL MEGA INTERNATIONAL)
2. Tax preference
(1) On December 26 2024 the subsidiary Fangda Jianke obtained the certificate of high-tech enterprise jointly issued by
the Industry and Information Technology Bureau of Shenzhen Municipality Shenzhen Finance Bureau State Administration of
Taxation and Shenzhen Taxation Bureau. The certificate number is GR202444207062. Within three years after obtaining the
qualification of high-tech enterprise (from 2024 to 2026) the income tax will be levied at 15%.
(2) On December 26 2024 the subsidiary Fangda Zhiyuan Technology Co. Ltd. obtained the certificate of high tech
enterprise jointly issued by the Industry and Information Technology Bureau of Shenzhen Municipality Shenzhen Finance Bureau
130Interim Report 2025 of China Fangda Group Co. Ltd.
State Administration of Taxation and Shenzhen Taxation Bureau. The certificate number is GR202444201506. Within three years
after obtaining the qualification of high tech enterprise (from 2024 to 2026) the income tax will be levied at 15%.
(3) On October 16 2023 the subsidiary Fangda Chengdu Technology obtained the certificate of high tech enterprise No.
GR202351000927 jointly issued by the Department of Science and Technology of Sichuan Province the Department of Finance of
Sichuan Province the State Administration of Taxation and the Sichuan Provincial Taxation Bureau. Within three years after
obtaining the qualification of high tech enterprise (2023-2025) the income tax will continue to be levied at 15%.
(4) The subsidiary Kechuangyuan Software is an enterprise located in Qianhai Shenzhen Hong Kong Modern Service
Industry Cooperation Zone. Its main business meets the conditions of Preferential Catalogue of Enterprise Income Tax in Qianhai
Shenzhen Hong Kong Modern Service Industry Cooperation Zone (2021)(the Regulation shall be implemented from January 1
2021 to December 31 2025) and the income tax is levied at 15%.
(5) On November 15 2023 the subsidiary Fangda Shanghai Zhijian obtained the certificate of high tech enterprise
GR202331002267 jointly issued by Shanghai Science and Technology Commission Shanghai Finance Bureau and Shanghai
Taxation Bureau. Within three years (from 2023 to 2025) after obtaining the qualification of high tech enterprise the income tax
will continue to be charged at 15%.
(6) On November 15 2023 the subsidiary Fangda Yunzhu Co. Ltd. obtained the certificate of high tech enterprise jointly
issued by Shenzhen Science and Technology Innovation Commission Shenzhen Finance Bureau State Administration of Taxation
and Shenzhen Taxation Bureau. The certificate number is GR202344205791. Within three years after obtaining the qualification
of high tech enterprise (from 2023 to 2025) the income tax will be levied at 15%.
(7) According to the "Announcement on Further Supporting the Development of Small and Micro Enterprises and
Individual Businesses with Relevant Tax and Fee Policies" (Announcement No. 12 2023 of the Ministry of Finance and the State
Taxation Administration) some companies qualify as small low-profit enterprises in 2025 and their income is subject to corporate
income tax in accordance with the provisions of the aforementioned document.VII. Notes to the Consolidated Financial Statements
1. Monetary capital
In RMB
Item Closing balance Opening balance
Inventory cash: 1966.98 148.01
Bank deposits 791773791.12 1052461034.10
131Interim Report 2025 of China Fangda Group Co. Ltd.
Other monetary capital 319243818.70 439316159.73
Total 1111019576.80 1491777341.84
Including: total amount deposited in
86307348.2676232428.11
overseas
Others:
(1) Of the ending balance of bank deposits RMB45987644.26 is restricted in use including restricted deposits of
RMB43708530.33 in special accounts RMB2246354.74 frozen by judicial authorities and RMB32759.19 as stage guarantee
deposits for commercial housing purchasers. Of the ending balance of other monetary funds RMB305433904.56 is restricted in
use mainly including bill deposits stage guarantee deposits and guarantee deposits for issuing letters of guarantee. In the
preparation of the cash flow statement the above-mentioned deposits and other restricted deposits are not used as cash and cash
equivalents.
(2) Apart from the above there are no other funds within the ending monetary funds that are restricted in use due to
mortgage pledge or freeze nor are there any with potential recovery risks.
2. Derivative financial assets
In RMB
Item Closing balance Opening balance
Futures hedging contract 77600.00 0.00
Total 77600.00 0.00
3. Notes receivable
(1) Classification of notes receivable
In RMB
Item Closing balance Opening balance
Bank acceptance 62587051.95 39584331.31
Commercial acceptance 14020799.61 34303362.93
Total 76607851.56 73887694.24
(2) Disclosure by bad debt accrual method
In RMB
Closing balance Opening balance
Remaining book Remaining book
Bad debt provision Bad debt provision
Type value Book value Book
Proporti Provisio value Proporti Provisio value
Amount Amount Amount Amount
on n rate on n rate
Notes
receivab
le with 768103 202547. 766078 745309 643256. 738876100.00% 0.26% 100.00% 0.86%
provisio 99.16 60 51.56 50.99 75 94.24
n for bad
debts by
132Interim Report 2025 of China Fangda Group Co. Ltd.
portfolio
Includin
g:
Bank
625870625870395843395843
acceptan 81.48% 0.00% 53.11% 0.00%
51.9551.9531.3131.31
ce
Commer
cial 142233 202547. 140207 349466 643256. 343033
18.52%1.42%46.89%1.84%
acceptan 47.21 60 99.61 19.68 75 62.93
ce
768103202547.766078745309643256.738876
Total 100.00% 0.26% 100.00% 0.86%
99.166051.5650.997594.24
Provision for bad debts by category: bank acceptance bills
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Bank acceptance 62587051.95 0.00 0.00%
Total 62587051.95 0.00
Provision for bad debts by category: commercial acceptance bills
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Commercial acceptance 14223347.21 202547.60 1.42%
Total 14223347.21 202547.60
If the provision for bad debts on accounts receivable is being made based on the expected credit loss general model:
□ Applicable□ Inapplicable
(3) Bad debt provision made returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Type Opening balance Written-back or Closing balance
Provision Canceled Others
recovered
Commercial
643256.75-440709.15202547.60
acceptance
Total 643256.75 -440709.15 202547.60
Including significant recovery or reversal:
□ Applicable□ Inapplicable
(4) The Group has no endorsed or discounted immature receivable notes at the end of the period.
In RMB
Item De-recognized amount Not de-recognized amount
133Interim Report 2025 of China Fangda Group Co. Ltd.
Bank acceptance 48339576.30
Commercial acceptance 7700000.00
Total 56039576.30
4. Account receivable
(1) Account age
In RMB
Age Closing balance of book value Opening balance of book value
Within 1 year (inclusive) 424637421.68 535457065.77
1-2 years 171231194.93 197202489.75
2-3 years 179594961.78 196353916.70
Over 3 years 620691779.98 568801528.90
3-4 years 133947260.94 173116205.07
4-5 years 168151943.98 134492519.77
Over 5 years 318592575.06 261192804.06
Total 1396155358.37 1497815001.12
The Company needs to comply with the disclosure requirements of the decoration and decoration industry in the Guidelines for the
Self-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.Significant individual amounts of accounts receivable in the curtain wall and materials industry that have exceeded three years in
age
Balance of accounts Whether there
Customer receivable of over 3 Balance of provision
years (RMB) for bad debts (RMB)
Reason of the age is a risk of
recovery
Customer 1 106278399.14 72225885.93Customer credit status deteriorates Yes
Customer 2 54873223.21 54873223.21Customer credit status deteriorates Yes
Customer 3 28770560.55 28485318.01Customer credit status deteriorates Yes
Customer 4 26594327.13 5896959.04Customer credit status deteriorates Yes
Customer 5 26558000.66 17835228.98Customer credit status deteriorates Yes
Customer 6 24724675.20 5999812.01Customer credit status deteriorates Yes
Customer 7 20777818.40 8103943.07Customer credit status deteriorates Yes
Customer 8 19541985.85 16037781.34Customer credit status deteriorates Yes
Customer 9 17374148.42 17374148.42Customer credit status deteriorates Yes
Customer 10 16492469.99 6319513.32Customer credit status deteriorates Yes
Customer 11 13461834.96 13461834.96Customer credit status deteriorates Yes
Customer 12 Details of the final payment for12262317.09 2658157.26 customer projects are under negotiation No
Customer 13 Details of the final payment for10478293.72 4522431.57 customer projects are under negotiation No
(2) Disclosure by bad debt accrual method
In RMB
134Interim Report 2025 of China Fangda Group Co. Ltd.
Closing balance Opening balance
Remaining book Remaining book
Bad debt provision Bad debt provision
Type value Book value Book
Proporti Provisio value Proporti Provisio value
Amount Amount Amount Amount
on n rate on n rate
Account
receivab
le for
which
128130982327298977127640979879296529
bad debt 9.18% 76.67% 8.51% 76.77%
519.7988.9830.81916.8387.5229.31
provisio
n is
made by
group
Includin
g:
Custome 548732 548732 548732 548732
3.93%100.00%0.003.66%100.00%0.00
r 1 23.21 23.21 23.21 23.21
Custome 473706 236853 236853 472105 236052 236052
3.39%50.00%3.15%50.00%
r 2 34.93 17.46 17.47 77.56 88.79 88.77
Custome 134618 134618 134618 134618
0.96%100.00%0.000.90%100.00%0.00
r 3 34.96 34.96 34.96 34.96
Custome 709642 354821 354821 709642 354821 354821
0.51%50.00%0.47%50.00%
r 4 1.00 0.50 0.50 1.00 0.50 0.50
Custome 532840 266420 266420 499886 249943 249943
0.38%50.00%0.33%50.00%
r 5 5.69 2.85 2.84 0.10 0.06 0.04
Account
receivab
le for
which
126802334473933551137017276320109385
bad debt 90.82% 26.38% 91.49% 20.17%
4838.58036.39802.194084.29816.623267.67
provisio
n is
made by
group
Includin
g:
1.
Portfolio
1:
Engineer 111155 328001 783557 120158 270560 931020
79.62%29.51%80.23%22.52%
ing 8865.41 768.18 097.23 1352.19 899.59 452.60
operatio
ns
section
2.
Portfolio
2: Real
684968169590668009871668218121849855
estate 4.91% 2.48% 5.82% 2.50%
57.593.6753.9212.198.4393.76
business
payment
s
3.
879691477536831937814259357869778472
Combin 6.30% 5.43% 5.44% 4.40%
15.584.5451.0419.918.6021.31
ation 3:
135Interim Report 2025 of China Fangda Group Co. Ltd.
Other
business
models
139615432705963449149781374308112350
Total 100.00% 30.99% 100.00% 24.99%
5358.37825.37533.005001.12804.146196.98
Provision for bad debts by individual item: individual provision
In RMB
Opening balance Closing balance
Name Remaining book Bad debt Remaining book Bad debt Provisio
Reason
value provision value provision n rate
Customer's credit
condition has
Customer 100.00
54873223.21 54873223.21 54873223.21 54873223.21 deteriorated
1%
recovery is expected
to be impossible
Customer Customer credit
47210577.5623605288.7947370634.9323685317.4650.00%
2 status deteriorates
Customer's credit
condition has
Customer 100.00
13461834.96 13461834.96 13461834.96 13461834.96 deteriorated
3%
recovery is expected
to be impossible
Customer Customer credit
7096421.003548210.507096421.003548210.5050.00%
4 status deteriorates
Customer Customer credit
4998860.102499430.065328405.692664202.8550.00%
5 status deteriorates
Total 127640916.83 97987987.52 128130519.79 98232788.98
Provision for bad debts by category: Portfolio 1: Engineering business payments
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 340124968.71 6666449.38 1.96%
1-2 years 125365602.98 7095693.14 5.66%
2-3 years 152886370.41 19508300.87 12.76%
3-4 years 129552730.83 25599619.61 19.76%
4-5 years 166251737.01 71754249.71 43.16%
Over 5 years 197377455.47 197377455.47 100.00%
Total 1111558865.41 328001768.18
Group recognition basis:
See 10. Financial Tools in Chapter VIII V Important Accounting Policies and Accounting Estimates for the recognition criteria
and instructions for withdrawing bad debt reserves by portfolio
Provision for bad debts by category: Portfolio 2: Real estate business payments
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 43302330.07 433023.31 1.00%
1-2 years 14625805.49 731290.27 5.00%
2-3 years 10537182.29 526859.12 5.00%
3-4 years 31539.74 4730.97 15.00%
136Interim Report 2025 of China Fangda Group Co. Ltd.
4-5 years
Over 5 years
Total 68496857.59 1695903.67
Provision for bad debts by category: Portfolio 3: Other business payments
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 41040452.65 299595.30 0.73%
1-2 years 29093470.29 610962.88 2.10%
2-3 years 12420031.33 1045766.63 8.42%
3-4 years 3187397.81 789837.18 24.78%
4-5 years 1467560.66 1268999.71 86.47%
Over 5 years 760202.84 760202.84 100.00%
Total 87969115.58 4775364.54
If the provision for bad debts on accounts receivable is being made based on the expected credit loss general model:
□ Applicable□ Inapplicable
(3) Bad debt provision made returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Type Opening balance Written- Cance Closing balance
Provision back or Others
led
recovered
Separate bad debt provision 97987987.52 244801.46 98232788.98
1. Portfolio 1: Engineering
270560899.5957440868.59328001768.18
operations section
2. Portfolio 2: Real estate
2181218.43-485314.761695903.67
business payments
3. Combination 3: Other
3578698.601196665.944775364.54
business models
Total 374308804.14 58397021.23 432705825.37
(5) Accounts receivable and contract assets with the top-5 ending balances grouped by party owed
In RMB
Closing balance of
Percentage of total
Closing balance of provision for bad
Closing balance of ending balance of
Closing balance of accounts debts on accounts
Entity accounts accounts
contract assets receivable and receivable and
receivable receivable and
contract assets impairment of
contract assets
contract assets
No.1 123432623.99 123432623.99 3.03% 74391948.30
No.2 25829571.57 76223883.78 102053455.35 2.51% 2665176.43
No.3 29563417.95 65143365.63 94706783.58 2.33% 11293698.67
No.4 8967200.00 66626539.51 75593739.51 1.86% 5979383.88
No.5 68332277.37 68332277.37 1.68% 1353596.34
Total 187792813.51 276326066.29 464118879.80 11.41% 95683803.62
137Interim Report 2025 of China Fangda Group Co. Ltd.
5. Contract assets
(1) Contract assets
In RMB
Closing balance Opening balance
Item Remaining Bad debt Remaining Bad debt
Book value Book value
book value provision book value provision
Completed and
unsettled
project funds 2319308046. 2139739330. 2303529715. 2106693360.
179568716.16196836354.61
that fail to meet 54 38 41 80
the collection
conditions
Quality
guarantee
deposit that
313714238.3837106000.07276608238.31262289726.5024254807.14238034919.36
fails to meet the
collection
conditions
Sales funds
with
38687854.86498208.8438189646.0252852539.43727775.8952124763.54
conditional
collection right
Less: Contract
assets shown in
184571451.3011397076.96173174374.34160412051.4511257487.71149154563.74
other non-
current assets
2487138688.2281362840.2458259929.2247698479.
Total 205775848.11 210561449.93
48378996
(2) The amount and reason for the significant change in the book value during the reporting period
In RMB
Item Change Reason
This is mainly due to the unsettled project funds
Completed and unsettled project funds that fail
33045969.58 with conditional collection rights arising from the
to meet the collection conditions
revenue recognized in the project contract this year
Quality guarantee deposit that fails to meet the Mainly due to the increase in warranty deposits that
38573318.95
collection conditions have not met the collection conditions
Due to a decrease in sales proceeds with conditional
Sales funds with conditional collection right -13935117.52
collection rights
Less: Contract assets shown in other non- Mainly due to the increase in warranty deposits for
24019810.60
current assets completed projects that have not yet matured
Total 33664360.41 ——
(3) Disclosure by bad debt accrual method
In RMB
Closing balance Opening balance
Type Remaining book Book Remaining book Book
Bad debt provision Bad debt provision
value value value value
138Interim Report 2025 of China Fangda Group Co. Ltd.
Proporti Provisio Proporti Provisio
Amount Amount Amount Amount
on n rate on n rate
Separate
bad debt 159590 886847 709055 162885 903324 725532
0.64%55.57%0.66%55.46%
provisio 30.94 4.41 6.53 76.53 7.20 9.33
n
Including:
Custome 141811 709055 709055 145106 725532 725532
0.57%50.00%0.59%50.00%
r 1 13.07 6.54 6.53 58.66 9.33 9.33
Custome 177791 177791 177791 177791
0.07%100.00%0.07%100.00%
r 2 7.87 7.87 7.87 7.87
Provisio
n for bad
247117196907227427244197201528224044
debts by 99.36% 7.97% 99.34% 8.25%
9657.55373.702283.851353.36202.733150.63
combina
tion
Including:
Complet
ed and
unsettled
project
funds
that fail 230334 170700 213264 228632 187097 209923
92.61%7.41%93.01%8.18%
to meet 9015.61 241.75 8773.86 9426.34 333.23 2093.11
the
collectio
n
conditio
ns
Quality
guarante
e deposit
that fails
to meet 129142 257089 103433 102789 137030 890862
5.19%19.91%4.18%13.33%
the 787.08 23.11 863.97 387.59 93.61 93.98
collectio
n
conditio
ns
Sales
funds
with
386878498208.381896528525727775.521247
conditio 1.56% 1.29% 2.15% 1.38%
54.868446.0239.438963.54
nal
collectio
n right
248713205775228136245825210561224769
Total 100.00% 8.27% 100.00% 8.57%
8688.49848.112840.389929.89449.938479.96
Provision for bad debts by individual item: individual provision
In RMB
Opening balance Closing balance
Name Remaining book Bad debt Remaining book Bad debt Provisio
Reason
value provision value provision n rate
Customer 14510658.66 7255329.33 14181113.07 7090556.54 50.00% Customer credit
139Interim Report 2025 of China Fangda Group Co. Ltd.
1 status deteriorates
Customer's credit
condition has
Customer 100.00
1777917.87 1777917.87 1777917.87 1777917.87 deteriorated
2%
recovery is expected
to be impossible
Total 16288576.53 9033247.20 15959030.94 8868474.41
Provision for bad debts by category: Sales proceeds with conditional collection rights
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Sales funds with conditional
38687854.86498208.841.29%
collection right
Total 38687854.86 498208.84
Group recognition basis:
See 10. Financial Tools in Chapter VIII V Important Accounting Policies and Accounting Estimates for the recognition criteria
and instructions for withdrawing bad debt reserves by portfolio
Provision for bad debts by category: Completed but unsettled engineering payments that have not met collection conditions
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Completed and unsettled
project funds that fail to meet 2303349015.61 170700241.75 7.41%
the collection conditions
Total 2303349015.61 170700241.75
Provision for bad debts by category: Warranty deposits that have not met collection conditions
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Quality guarantee deposit that
fails to meet the collection 129142787.08 25708923.11 19.91%
conditions
Total 129142787.08 25708923.11
Provision for bad debts based on general model of expected credit losses
□ Applicable□ Inapplicable
(4) Bad debt provision made returned or recovered in the period
In RMB
Recovered or reversed Written off in the
Item Provision Reason
during the period current period
Separate bad debt
-164772.79
provision
Provision for bad debts -4620829.03
140Interim Report 2025 of China Fangda Group Co. Ltd.
by combination
Total -4785601.82
6. Receivable financing
(1) Presentation of receivables financing classification
In RMB
Item Closing balance Opening balance
Notes receivable 387988.26 4568000.10
Total 387988.26 4568000.10
(2) Disclosure by bad debt accrual method
In RMB
Closing balance Opening balance
Remaining book Remaining book
Bad debt provision Bad debt provision
Type value Book value Book
Proporti Provisio value Proporti Provisio value
Amount Amount Amount Amount
on n rate on n rate
Provisio
n for bad
387988.387988.456800456800
debts by 100.00% 0.00 0.00% 100.00% 0.00 0.00%
26260.100.10
combina
tion
Including:
Bank
387988.387988.456800456800
acceptan 100.00% 0.00 0.00% 100.00% 0.00 0.00%
26260.100.10
ce
387988.387988.456800456800
Total 100.00% 0.00 0.00% 100.00% 0.00 0.00%
26260.100.10
Provision for bad debts by category: bank acceptance bills
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Bank acceptance 387988.26 0.00 0.00%
Total 387988.26 0.00
Group recognition basis:
See 10. Financial Tools in Chapter VIII V Important Accounting Policies and Accounting Estimates for the recognition criteria
and instructions for withdrawing bad debt reserves by portfolio
(3) Receivables financing endorsed or discounted by the Company and not yet due as of the balance sheet
date
In RMB
Item De-recognized amount Not de-recognized amount
Bank acceptance 20218009.94
141Interim Report 2025 of China Fangda Group Co. Ltd.
Total 20218009.94
7. Other receivables
In RMB
Item Closing balance Opening balance
Other receivables 159021678.10 168322524.80
Total 159021678.10 168322524.80
(1) Other receivables
1) Other receivables are disclosed by nature
In RMB
By nature Closing balance of book value Opening balance of book value
Deposit and pledge paid 92302799.58 101364611.15
Construction borrowing and advanced
39555845.3539950652.16
payment
Staff borrowing and petty cash 3859640.71 3221577.94
VAT refund receivable 1669026.05 642493.02
Refundable advance payments 18688485.50 18884265.12
Others 12055952.72 12294754.02
Total 168131749.91 176358353.41
(2) Account age
In RMB
Age Closing balance of book value Opening balance of book value
Within 1 year (inclusive) 38057107.79 45432663.12
1-2 years 5088714.70 11015466.34
2-3 years 3402846.21 4495902.18
Over 3 years 121583081.21 115414321.77
3-4 years 3507438.00 3882310.18
4-5 years 2699084.63 9518614.26
Over 5 years 115376558.58 102013397.33
Total 168131749.91 176358353.41
The Company needs to comply with the disclosure requirements of the decoration and decoration industry in the Guidelines for the
Self-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.Significant individual amounts of other accounts receivable in the curtain wall and materials industry that have exceeded three
years in age
Customer Balance of other receivables Balance of provision Whether there is a riskolder than three years (RMB) for bad debts (RMB) Reason of the age of recovery
Customer 1 1970381.89 1970381.89 Customer credit status
deteriorates Yes
Customer 2 1586520.17 23639.15 Performance bond No
Total 3556902.06 1994021.04
142Interim Report 2025 of China Fangda Group Co. Ltd.
(3) Disclosure by bad debt accrual method
□ Applicable □ Inapplicable
In RMB
Closing balance Opening balance
Remaining book Remaining book
Bad debt provision Bad debt provision
Type value Book value Book
Proporti Provisio value Proporti Provisio value
Amount Amount Amount Amount
on n rate on n rate
Provisio
n for bad
168131911007159021176358803582168322
debts by 100.00% 5.42% 100.00% 4.56%
749.911.81678.10353.418.61524.80
combina
tion
Including:
First 158161 235758 167771 249826 165273
94.07%1.49%15580395.13%1.49%
stage 485.57 7.33 898.24 508.00 5.50 242.50
Second 331729 99518.9 314359 94307.7 304928
1.97%3.00%3217771.78%3.00%
stage 8.83 7 9.86 0.00 0 2.30
Third 665296 665296 0.00 544325 5443253.96% 100.00% 3.09% 100.00% 0.00
stage 5.51 5.51 5.41 5.41
168131911007159021176358803582168322
Total 100.00% 5.42% 100.00% 4.56%
749.911.81678.10353.418.61524.80
Provision for bad debts by category: Portfolio 1: Stage one
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Portfolio 1: First stage 158161485.57 2357587.33 1.49%
Total 158161485.57 2357587.33
Description of the basis for determining the portfolio: Provision for bad debts is made on the basis of the general model of
expected credit losses.Provision for bad debts by category: Portfolio 2: Stage two
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Portfolio 2: Second stage 3317298.83 99518.97 3.00%
Total 3317298.83 99518.97
Provision for bad debts by category: Portfolio 3: Stage three
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Portfolio 3: Third stage 6652965.51 6652965.51 100.00%
Total 6652965.51 6652965.51
Provision for bad debts based on general model of expected credit losses
In RMB
143Interim Report 2025 of China Fangda Group Co. Ltd.
First stage Second stage Third stage
Expected credit loss
Expected credit loss
Bad debt provision Expected credit for the entirefor the entire Total
losses in the next 12 duration (credit
duration (no credit
months impairment has
impairment)
occurred)
Balance on Wednesday January 1
2498265.5094307.705443255.418035828.61
2025
Balance on Wednesday January 1
2025 in the current period
Provision -141170.07 5211.27 1209710.10 1073751.30
Other change 491.90 491.90
Balance on Monday June 30 2025 2357587.33 99518.97 6652965.51 9110071.81
Criteria for stage division and provision ratios for bad debts
First stage Payments not overdue or overdue for less than 30 days 1.49%
Second
Payments excluding those in Stage One and Stage Three 3.00%
stage
Individual Determined based on the actual loss
Payments overdue for more than 90 days and have
Third stage recognition rate calculated for individual items
incurred credit impairment
Others 100%
Changes in book balances with significant changes in the current period
□ Applicable□ Inapplicable
4) Bad debt provision made returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Type Opening balance Written- Closing balance
Provision back or Write-off Others
recovered
Provision for bad debts
8035828.611073751.30491.909110071.81
by combination
Total 8035828.61 1073751.30 491.90 9110071.81
5) Balance of top 5 other receivables at the end of the period
In RMB
Balance of bad
Percentag debt provision
Entity By nature Closing balance Age
e (%) at the end of
the period
Shenzhen Yikang Real Estate Co. Margin and 6000000.00 2-3 years 45.24% 1133333.87
144Interim Report 2025 of China Fangda Group Co. Ltd.
Ltd. current account 62675.83 4-5 years
70000000.00 Over 5 years
Bangshen Electronics (Shenzhen)
Deposit 20000000.00 Over 5 years 11.90% 298000.00
Co. Ltd.Refundable
Less than 1
Jiangxi Yajinghong Trading Co. Ltd. advance 16215255.00 9.64% 241607.30
year
payments
Shenzhen Henggang Dakang Co.Deposit 8000000.00 Over 5 years 4.76% 119200.00
Ltd.Shenzhen Ganshang Joint Investment
Others 3791089.25 Over 5 years 2.25% 56487.23
Co. Ltd.Total 124069020.08 73.79% 1848628.40
8. Prepayment
(1) Account ages of prepayments
In RMB
Closing balance Opening balance
Age
Amount Proportion Amount Proportion
Less than 1 year 25027812.41 81.59% 17938392.45 76.81%
1-2 years 1197822.36 3.90% 1949630.86 8.35%
2-3 years 1959235.04 6.39% 1404616.03 6.01%
Over 3 years 2491082.56 8.12% 2062396.77 8.83%
Total 30675952.37 23355036.11
At the end of the period there are no important prepayments exceeding one year in age.
(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 RMB9376206.65 accounting for 30.57% of the
total prepayments at the end of the period.
9. Inventories
Whether the Company needs to comply with disclosure requirements of the real estate industry.Yes
(1) Classification of inventories
The Company needs to comply with the disclosure requirements of the real estate industry in the Guidelines for the Self-discipline
and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.Classified by nature:
In RMB
Closing balance Opening balance
Provision for Provision for
Item Remaining inventory RemainingBook value inventory Book value
book value depreciation or book value depreciation or
contract contract
145Interim Report 2025 of China Fangda Group Co. Ltd.
performance performance
cost cost
impairment impairment
provision provision
Development
232850833.28232850833.28230990938.09230990938.09
cost
Development
123294948.03123294948.03124380755.91124380755.91
products
Contract
performance 87870860.04 87870860.04 102358825.07 102358825.07
costs
Raw materials 137241926.40 137241926.40 110961372.14 110961372.14
Product in
92784395.9992784395.9991796788.9691796788.96
process
Finished goods
43889520.0043889520.008694704.458694704.45
in stock
Low price
182549.71182549.71178098.23178098.23
consumable
OEM materials 14107387.38 14107387.38 13483327.00 13483327.00
Goods
13352219.3313352219.3320251212.3020251212.30
delivered
Materials in
2570386.592570386.59
transit
Total 745574640.16 745574640.16 705666408.74 705666408.74
Development cost and capitalization rate of its interest are disclosed as follows:
In RMB
Includi
Transfe Increas
ng:
rred to e Accum
Estimat Estimat Other capitali
Openin develop (develo ulative
Starting ed ed total decreas Closing zed Capital
Item g ment pment capitali
time finish investm e in this balance interest source
balance product cost) in zed
time ent period for the
in this this interest
current
period period
period
Dakang
Village 1
Decem 36000
Project Decem 201016 310330 201326
ber 31 00000.in ber 423.09 .19 753.28
2034 00 Bank
Shenzh 2028 loans
en and
Fangda own
Bangsh Decem funds
Decem 870000 29974 15495 31524
en ber 31
ber 000.00 515.00 65.00 080.00
Industr 2026
2025
y Park
44700
23099018598232850
Total 00000.
938.0995.19833.28
00
Disclose the main project information of "Development Products" according to the following format:
In RMB
Completion Opening Closing
Item Increase Decrease Accumulativ Including:
time balance balance e capitalized capitalized
146Interim Report 2025 of China Fangda Group Co. Ltd.
interest interest for
the current
period
Phase I of
December 15532505.9 15532505.9
Fangda 549009.88
29201677
Town
Nanchang
April 27 108848249. 107762442.Fangda 1085807.88 4179820.41
20219406
Center
124380755.123294948.
Total 1085807.88 4728830.29
9103
(2) Capitalization rate of interest in the closing inventory balance
As of June 30 2025 the capitalization amount of borrowing costs in the ending inventory balance is RMB4728830.29.
10. Other current assets
In RMB
Item Closing balance Opening balance
Reclassification of VAT debit balance 319957156.93 292626079.84
Overpayment and prepayment of income
11338103.8711197246.58
tax
Payment to be collected on behalf of
3003841.893003841.89
suppliers
Prepaid other taxes and fees 911445.00 949974.83
Total 335210547.69 307777143.14
11. Long-term share equity investment
In RMB
Change (+-)
Invest
Balanc
Beginn ment
e of
ing gain Other
and Cash impairOpeni balanc
Investe miscell
ng e of Increas Decrea loss divide Impair
Closin ment
d aneous Other g book provisi
book impair ed sed recogn nd or ment
entity incom equity Others value on at
value ment invest invest ized profit provisie change
provisi ment ment using annou on
the end
adjust
the nced of theons ment
equity period
metho
d
1. Joint venture
2. Associate
Gansh
ang
24022403
Joint 245.35
841.50086.85
Invest
ment
147Interim Report 2025 of China Fangda Group Co. Ltd.
Jiangxi
Busine
ss
Innova
tive 54288 - 54252
Proper 132.4 35409 722.8
ty 7 .60 7
Joint
Stock
Co.Ltd.
56690-56655
Subtot
973.935164809.7
al
7.252
56690-56655
Total 973.9 35164 809.7
7.252
The recoverable amount is determined as the net amount after deducting the disposal costs from the fair value.□ Applicable□ Inapplicable
The recoverable amount is determined based on the present value of estimated future cash flows.□ Applicable□ Inapplicable
12. Other non-current financial assets
In RMB
Item Closing balance Opening balance
Financial assets measured at fair value
with variations accounted into current 6523233.73 6519740.17
income account
Total 6523233.73 6519740.17
13. Investment real estates
(1) Investment real estate measured at costs
□ Applicable□ Inapplicable
(2) Investment real estate measured at fair value
□ Applicable □ Inapplicable
In RMB
Item Houses & buildings Total
I. Opening balance 5835036098.20 5835036098.20
II. Change in this period -9208981.24 -9208981.24
Add: external purchase
Transfer-in from inventory\fixed
assets\construction in progress
Less: disposal 9261764.55 9261764.55
Change in fair value 52783.31 52783.31
148Interim Report 2025 of China Fangda Group Co. Ltd.
III. Closing balance 5825827116.96 5825827116.96
The Company needs to comply with the disclosure requirements of the real estate industry in the Guidelines for the Self-discipline
and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.Disclosure of investment real estate measured at fair value by projects
In RMB
Rental
Reason for
Completion Building income in Opening Closing fair Change in
Item Location the change
time area (m2) the report fair value value fair value
and report
period
Fangda
Town
11 October 36729288. 48169961 48169961
commercial Shenzhen 92470.58 0.00%
20175753.0253.02
and office
buildings
28
Fangda 7703010.9 38064435 38064435
Shenzhen December 20464.75 0.00%
Building 6 0.00 0.00
2002
Nanchang
December 6838442.8 41555240 41555240
Fangda Nanchang 38165.36 0.00%
10202033.003.00
Center
Nanchang
Fangda 2 August 2685475.3 18587784 18587784
Nanchang 85472.88 0.00%
Technolog 2005 2 8.00 8.00
y Park
Due to the
Guangzhou disposal of
Zhuhai 35965344. 26756362. some
Others 2847.06 39779.85 -25.61%
Shaoguan 18 94 properties
etc. during the
period
53995997.5835036058258271
Total 239420.63 -0.16%53 98.20 16.96
Whether the Company has investment real estate in the current construction period
□ Yes□ No
Whether there is new investment real estate measured at fair value in the report period
□ Yes□ No
(3) Investment real estate without ownership certificate
In RMB
Item Book value Reason
Five units at Lanzhou Rail Transit·City The developer is completing the relevant
4584155.96
Dawn procedures
14. Fixed assets
In RMB
Item Closing balance Opening balance
Fixed assets 932515821.46 939548074.59
149Interim Report 2025 of China Fangda Group Co. Ltd.
Disposal of fixed assets 1346269.80
Total 932515821.46 940894344.39
(1) Fixed assets
In RMB
Houses & Mechanical Transportation Electronics and
Item PV power plants Total
buildings equipment facilities other devices
I. Original
book value:
1. Opening 1187481480.
856161214.35128885604.1221320277.1951360255.80129754129.46
balance 92
2. Increase in
1039788.148258788.93227633.251779787.3311305997.65
this period
(1) Purchase 8397.00 8258788.93 227633.25 1779787.33 10274606.51
(2) Transfer-
in of
1031391.141031391.14
construction
in progress
3. Decrease in
11149.0018500.00365300.34443040.30837989.64
this period
(1) Disposal
11149.0018500.00360130.54441855.32831634.86
or retirement
(2) Other
5169.801184.986354.78
decrease
4. Closing 1197949488.
857189853.49137125893.0521182610.1052697002.83129754129.46
balance 93
II.Accumulative
depreciation
1. Opening
87653570.3059286500.0815592743.4232441506.8452954004.49247928325.13
balance
2. Increase in
9725673.833732462.31434138.641270673.613077964.9618240913.35
this period
(1) Provision 9725673.83 3732462.31 434138.64 1270673.61 3077964.96 18240913.35
3. Decrease in
3930.1416650.00324117.49395954.58740652.21
this period
(1) Disposal
3930.1416650.00324117.49395954.58740652.21
or retirement
4. Closing
97375313.9963002312.3915702764.5733316225.8756031969.45265428586.27
balance
III.Impairment
provision
1. Opening
5081.205081.20
balance
2. Increase in
this period
150Interim Report 2025 of China Fangda Group Co. Ltd.
3. Decrease in
this period
4. Closing
5081.205081.20
balance
IV. Book
value
1. Closing
759814539.5074118499.465479845.5319380776.9673722160.01932515821.46
book value
2. Opening
768507644.0569594022.845727533.7718918748.9676800124.97939548074.59
book value
(2) Fixed assets without ownership certificate
In RMB
Item Book value Reason
Yuehai Office Building C 502 97241.85 Historical reasons
(3) Disposal of fixed assets
In RMB
Item Closing balance Opening balance
Disposal of fixed assets 1346269.80
Total 1346269.80
15. Construction in process
In RMB
Item Closing balance Opening balance
Construction in process 4883219.33 7265104.44
Total 4883219.33 7265104.44
(1) Construction in progress
In RMB
Closing balance Opening balance
Impair Impai
Item Remaining book ment Remaining book rment
Book value Book value
value provis value provi
ion sion
Fangda (Ganzhou) Low-
Carbon Intelligent
Manufacturing Base 4390931.22 4390931.22 7018372.92 7018372.92
Exhibition Hall and
Installation Equipment
Songshan lake production
base exhibition hall 407009.63 407009.63 246731.52 246731.52
renovation
Others 85278.48 85278.48
151Interim Report 2025 of China Fangda Group Co. Ltd.
Total 4883219.33 4883219.33 7265104.44 7265104.44
(2) Impairment testing of construction in progress
□ Applicable□ Inapplicable
16. Use right assets
(1) Right-to-use assets
In RMB
Item Houses & buildings Transportation facilities Total
I. Original book value:
1. Opening balance 17835398.71 9285061.69 27120460.40
2. Increase in this period 1774021.98 358600.31 2132622.29
3. Decrease in this period 3687980.46 1459531.04 5147511.50
4. Closing balance 15921440.23 8184130.96 24105571.19
II. Accumulative depreciation
1. Opening balance 9589374.43 1847964.93 11437339.36
2. Increase in this period 2846270.52 906821.82 3753092.34
(1) Provision 2846270.52 906821.82 3753092.34
3. Decrease in this period 3490935.35 1348069.46 4839004.81
(1) Disposal 3490935.35 1348069.46 4839004.81
4. Closing balance 8944709.60 1406717.29 10351426.89
III. Impairment provision
1. Opening balance
2. Increase in this period
3. Decrease in this period
4. Closing balance
IV. Book value
1. Closing book value 6976730.63 6777413.67 13754144.30
2. Opening book value 8246024.28 7437096.76 15683121.04
(2) Impairment testing of right-of-use assets
□ Applicable□ Inapplicable
17. Intangible assets
(1) Intangible assets
In RMB
Trademarks patents
Item Land using right Software proprietarytechnologies and Total
others
I. Book value
1. Opening balance 142009721.92 24267321.82 9779872.37 176056916.11
152Interim Report 2025 of China Fangda Group Co. Ltd.
2. Increase in this period 4589209.42 1350.00 4590559.42
(1) Purchase 4589209.42 1350.00 4590559.42
3. Decrease in this period 48330450.00 1954433.04 57905.00 50342788.04
(1) Disposal 48330450.00 1954433.04 57905.00 50342788.04
4. Closing balance 93679271.92 26902098.20 9723317.37 130304687.49
II. Accumulative
amortization
1. Opening balance 24105634.24 15108511.74 8946369.49 48160515.47
2. Increase in this period 2048865.16 1194847.43 95518.42 3339231.01
(1) Provision 2048865.16 1194847.43 95518.42 3339231.01
3. Decrease in this period 3955162.47 1954433.04 57680.00 5967275.51
(1) Disposal 3955162.47 1954433.04 57680.00 5967275.51
4. Closing balance 22199336.93 14348926.13 8984207.91 45532470.97
III. Impairment provision
1. Opening balance 3844005.85 3844005.85
2. Increase in this period
3. Decrease in this period 3844005.85 3844005.85
4. Closing balance
IV. Book value
1. Closing book value 71479934.99 12553172.07 739109.46 84772216.52
2. Opening book value 114060081.83 9158810.08 833502.88 124052394.79
(2) Impairment test of intangible assets
□ Applicable□ Inapplicable
18. Long-term amortizable expenses
In RMB
Amortized
Increase in this Other
Item Opening balance amount in this Closing balance
period decrease
period
Xuanfeng Chayuan village and
Zhuyuan village land transfer 860222.42 28050.78 832171.64
compensation
Sporadic decoration and renovation
1142235.22348296.00722273.27768257.95
costs of Fangda Town
Sporadic decoration and renovation
367433.90210458.87156975.03
costs of Fangda Center
Environmental protection service
3131349.06521891.522609457.54
fees
Nanchang Fangda Technology Park
1629423.90213045.641416378.26
plant maintenance and renovation
Others 1671134.16 632403.63 820741.96 1482795.83
Total 4041025.70 5741472.59 2516462.04 7266036.25
153Interim Report 2025 of China Fangda Group Co. Ltd.
19. Differed income tax assets and differed income tax liabilities
(1) Non-deducted deferred income tax assets
In RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment
216867647.5533126289.85227880793.9335025619.90
provision
Credit impairment
447553075.0270697757.98382932070.7260483324.52
provision
Unrealizable gross
114814567.8227540022.30108593435.6626573799.68
profit
Deductible loss 338802776.49 76884614.94 286565331.75 67193424.59
Anticipated liabilities 2787964.34 418194.65 4191535.03 628730.25
Unrealized investment
283670426.4556136538.46281712399.1555842834.35
income
Deferred earning 22906370.60 3582586.79 5946064.06 1041584.25
Change in fair value 5848556.53 877283.45 8623065.19 1303042.83
Lease liabilities 11178785.24 1749382.05 15352065.96 2788081.55
Accrued and unpaid
16012293.284003073.3316012293.284003073.33
land tax
Reserved expense 36589539.42 5488430.92 36589539.42 5488430.92
Tax and accounting
differences for 8951298.84 2685389.63 8617276.57 2585182.97
overseas subsidiaries
Total 1505983301.58 283189564.35 1383015870.72 262957129.14
(2) Non-deducted deferred income tax liabilities
In RMB
Closing balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
Change in fair value 4291784723.01 1071484258.17 4296974960.10 1071313064.75
Acquire premium to form
1535605.48383901.371535605.48383901.37
inventory
Use right assets 11440452.47 1870523.49 15683121.04 2901986.66
Estimated gross margin when
Fangda Town records
19716135.044929033.7624131708.416032927.10
income but does not reach
the taxable income level
Rental income 11298705.70 2824676.43 26717859.03 6679464.47
Total 4335775621.70 1081492393.22 4365043254.06 1087311344.35
(3) Net deferred income tax assets or liabilities listed
In RMB
Deferred income tax Offset balance of Deferred income tax Offset balance of
Item assets and liabilities at deferred income tax assets and liabilities at deferred income tax
the end of the period assets or liabilities after the beginning of the assets or liabilities after
154Interim Report 2025 of China Fangda Group Co. Ltd.
offsetting period offsetting
Deferred income tax
58848324.93224341239.4356970202.43205986926.71
assets
Deferred income tax
58848324.931022644068.2956970202.431030341141.92
liabilities
(4) Details of unrecognized deferred income tax assets
In RMB
Item Closing balance Opening balance
Deductible temporary difference 307077.18 434437.85
Deductible loss 385869.43 383366.61
Total 692946.61 817804.46
(5) Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Closing amount Opening amount Remarks
20252679.342679.34
2026449.91449.91
2027125759.62125759.62
2028122872.18122872.18
2029131605.56131605.56
2030 and later 2502.82
Total 385869.43 383366.61
20. Other non-current assets
In RMB
Closing balance Opening balance
Item Remaining Impairment Remaining Impairment
Book value Book value
book value provision book value provision
Contract assets 184571451.30 11397076.96 173174374.34 160412051.45 11257487.71 149154563.74
Prepaid house
and equipment 84780258.02 84780258.02 63504106.15 63504106.15
amount
Total 269351709.32 11397076.96 257954632.36 223916157.60 11257487.71 212658669.89
21. Assets with restricted ownership or use rights
In RMB
Closing balance Beginning of the period
Item Remaining Type of Restricted Remaining Type of Restricted
Book value Book value
book value restriction situation book value restriction situation
For pledge For pledge
Monetary 35142154 35142154 or Various 46005212 46005212 or Various
capital 8.82 8.82 restricted deposits 5.50 5.50 restricted deposits
use use
Notes 56039576. 55952616. For Bills 34500685. 34490806. For Bills
155Interim Report 2025 of China Fangda Group Co. Ltd.
receivable 30 30 endorseme endorsed or 65 03 endorseme endorsed or
nt or discounted nt or discounted
discounting but not yet discounting but not yet
due due
Fixed 42091651 40764067 Used as Loan by 36276074 35597842 Used as Loan by
assets 6.86 1.99 collateral pledge 1.16 5.04 collateral pledge
Intangible 24179649. 22970667. Used as Loan by 24179649. 23212463. Used as Loan by
assets 75 15 collateral pledge 75 67 collateral pledge
Account 18855961. 18571850. Loan by 34364041. 33851277. Loan by
For pledge For pledge
receivable 07 64 pledge 60 04 pledge
Investment 34690989 34690989 Used as Loan by 18224831 18224831 Used as Loan by
real estate 06.24 06.24 collateral pledge 72.10 72.10 collateral pledge
100% stake 100% stake
in Fangda in Fangda
Property Property
Equity 20000000 20000000 20000000 20000000
For pledge Developme For pledge Developme
pledge 0.00 0.00 0.00 0.00
nt held by nt held by
the the
Company Company
45405121452565622938340429300682
Total
59.0461.1415.7669.38
22. Short-term borrowings
(1) Classification of short-term borrowings
In RMB
Item Closing balance Opening balance
Guarantee loan 756848890.56 720642744.49
Guarantee and pledge loan 453677441.67 943053677.99
Total 1210526332.23 1663696422.48
Explanation of Short-Term Loan Classification: The ending balance of guaranteed loans of RMB756848890.56 is guaranteed by
the Company for its subsidiaries; the ending balance of guaranteed and pledged loans of RMB453677441.67 is guaranteed by the
Company for its subsidiaries and secured by the subsidiaries' deposits or intellectual property.
23. Derivative financial liabilities
In RMB
Item Closing balance Opening balance
Futures contracts 0.00 1520625.00
Total 0.00 1520625.00
24. Notes payable
In RMB
Type Closing balance Opening balance
Commercial acceptance 105101.24 8958406.41
Bank acceptance 603756270.11 672229721.56
Total 603861371.35 681188127.97
156Interim Report 2025 of China Fangda Group Co. Ltd.
The total amount of payable bills that have matured but not been paid at the end of the period is RMB0.00.
25. Account payable
(1) Account payable
In RMB
Item Closing balance Opening balance
Account repayable and engineering
1341231699.801528510873.88
repayable
Payable installation and implementation
459827730.31558215149.23
fees
Construction payable 37848289.19 27062009.47
Others 34651891.68 32806857.99
Total 1873559610.98 2146594890.57
(2) Significant accounts payable older than one year or past due
In RMB
Ending balance of accounts aged over
Item Reason
one year
Completion settlement procedures not
Supplier 1 26099922.27
yet finalized
Total 26099922.27
26. Other payables
In RMB
Item Closing balance Opening balance
Other payables 120776692.65 120918002.02
Total 120776692.65 120918002.02
(1) Other payables
1) Other payables presented by nature
In RMB
Item Closing balance Opening balance
Performance and quality deposit 38607530.17 42955873.85
Deposit 36889443.77 22843813.76
Reserved expense 506099.93 5336051.21
Others 44773618.78 49782263.20
Total 120776692.65 120918002.02
(2) Significant other accounts payable older than 1 year or past due
In RMB
Item Closing balance Reason
Shenzhen Yikang Real Estate Co. Ltd. 26159711.72 Payment paid as agreed in the contract
157Interim Report 2025 of China Fangda Group Co. Ltd.
Total 26159711.72
27. Prepayment received
(1) Prepayment received
In RMB
Item Closing balance Opening balance
Rent received in advance 3669703.07 1513398.39
Total 3669703.07 1513398.39
28. Contract liabilities
In RMB
Item Closing balance Opening balance
Project funds collected in advance 253906485.13 259315011.77
Real estate sales payment 1121660.56
Material loan 1396228.73 8934838.06
Others 664493.39 344191.43
Total 257088867.81 268594041.26
29. Employees' wage payable
(1) Employees' wage payable
In RMB
Item Opening balance Increase Decrease Closing balance
1. Short-term remuneration 69946623.12 236570591.43 272340927.80 34176286.75
2. Retirement pension program-
762569.7315900506.6916203201.21459875.21
defined contribution plan
3. Dismiss compensation 5534455.12 4349301.26 9418412.78 465343.60
Total 76243647.97 256820399.38 297962541.79 35101505.56
(2) Short-term remuneration
In RMB
Item Opening balance Increase Decrease Closing balance
1. Wage bonus allowance and
68590093.96220840671.79256595401.6132835364.14
subsidies
2. Employee welfare 227864.06 4707857.15 4793343.65 142377.56
3. Social insurance 187229.50 5221752.52 5256394.54 152587.48
Including: medical insurance 170309.99 4133473.70 4165252.96 138530.73
Labor injury insurance 10483.12 504458.97 507029.63 7912.46
Breeding insurance 6436.39 351603.17 351895.27 6144.29
Medical insurance 232216.68 232216.68
4. Housing fund 73372.23 5411736.70 5270788.32 214320.61
5. Labor union budget and staff 329829.09 388573.27 399509.35 318893.01
158Interim Report 2025 of China Fangda Group Co. Ltd.
education fund
6. Short-term paid leave 538234.28 25490.33 512743.95
Total 69946623.12 236570591.43 272340927.80 34176286.75
(3) Defined contribution plan
In RMB
Item Opening balance Increase Decrease Closing balance
1. Basic pension 750906.10 15385220.76 15683461.54 452665.32
2. Unemployment
11663.63515285.93519739.677209.89
insurance
Total 762569.73 15900506.69 16203201.21 459875.21
30. Taxes payable
In RMB
Item Closing balance Opening balance
VAT 5688349.69 5252317.56
Enterprise income tax 11982655.51 22749953.33
Personal income tax 1064595.82 1436564.89
City maintenance and construction tax 312003.37 442894.30
Land using tax 494804.97 342015.86
Property tax 8572987.21 1433309.14
Education surtax 140072.45 194329.75
Local education surtax 93381.66 129553.00
Land VAT 15027533.81 16012293.28
Others 587456.22 853886.08
Total 43963840.71 48847117.19
31. Non-current liabilities due within 1 year
In RMB
Item Closing balance Opening balance
Long-term loans due within 1 year 364576203.33 123355127.55
Lease liabilities due within one year 5294272.00 5114390.19
Provisions expected to mature within one
1050184.812905143.31
year
Total 370920660.14 131374661.05
32. Other current liabilities
In RMB
Item Closing balance Opening balance
Unterminated notes receivable 56039576.30 21426278.75
Substituted money on VAT 17393522.93 29409280.92
Total 73433099.23 50835559.67
159Interim Report 2025 of China Fangda Group Co. Ltd.
33. Long-term borrowings
(1) Classification of long-term borrowings
In RMB
Item Closing balance Opening balance
Guarantee mortgage and pledge loan 1689576203.33 1260355127.55
Less: Long-term loans due within 1 year 364576203.33 123355127.55
Total 1325000000.00 1137000000.00
Explanation of Long-Term Loan Classification: Among the aforementioned guaranteed mortgaged and pledged loans an amount
of RMB1101100000.00 is guaranteed by the Company for its subsidiary Fangda Real Estate Company with 100% equity of the
subsidiary pledged part of Fangda Town properties mortgaged and rental receivables pledged. An amount of
RMB290233333.33 is guaranteed by the Company for its subsidiary Fangda Intelligent Manufacturing Company with the
subsidiary's fixed assets and industrial land provided as mortgage security. An amount of RMB298242870 is guaranteed by the
Company for its subsidiary Fangda Construction Technology Company.Other Notes: The interest rate for long-term loans ranges from 2.5% to 5%.
34. Lease liabilities
In RMB
Item Closing balance Opening balance
Lease payments 14784665.89 18828149.71
Less: unrecognized financing expenses 952372.28 3061152.04
Less: lease liabilities due within one year 5294272.00 5114390.19
Total 8538021.61 10652607.48
35. Anticipated liabilities
In RMB
Item Closing balance Opening balance Reason
Product quality warranty 1364246.50 917063.27 Maintenance fee
Loss contract to be executed 369328.45 369328.45
Total 1733574.95 1286391.72
36. Deferred earning
In RMB
Item Opening balance Increase Decrease Closing balance Reason
Government See the following
10669612.1317776306.00964723.4627481194.67
subsidy table
Total 10669612.13 17776306.00 964723.46 27481194.67
Others:
Amount Other
included misc.Other Related to
December 31 Amount of in non- gains
Item chang June 30 2025 assets/earnin
2024 new subsidy operatin recorded
e g
g in this
revenue period
160Interim Report 2025 of China Fangda Group Co. Ltd.
Major investment project Assets-
prize from Industry and related
Trade Development Division 1338095.90 28571.40 1309524.50
of Dongguan Finance
Bureau
Distributed PV power Assets-
generation project subsidy related
sponsored by Dongguan 268750.37 12499.98 256250.39
Reform and Development
Commission
Subsidized land transfer Assets-
158650.671862.82156787.85
related
Special subsidy for industrial Assets-
transformation upgrading 998949.15 75869.58 923079.57 related
and development
Enterprise Assets-
informationization subsidy related
project of Shenzhen Small 228000.00 24000.00 204000.00
and Medium Enterprise
Service Agency
National Industry Assets-
Revitalization and 153864.3 related
4454797.704300933.40
Technology Renovation 0
Project fund
Subsidy for new plant Assets-
908496.7013071.90895424.80
related
Land subsidy Assets-
2313871.641927944.0030790.384211025.26
related
Central air pollution control 10234100.0 524825.6 Assets-
9709274.36
fund award and subsidy 0 4 related
Equipment special subsidy Assets-
5614262.0099367.465514894.54
related
Total 10669612.1 17776306.0 964723.4 27481194.6
3067
37. Capital share
In RMB
Change (+-)
Opening balance TransferIssued new Bonus Closing balance
red from Others Subtotal
shares shares
reserves
Total of
1073874227.001073874227.00
capital shares
161Interim Report 2025 of China Fangda Group Co. Ltd.
38. Capital reserve
In RMB
Item Opening balance Increase Decrease Closing balance
Capital premium (share capital
2903850.982903850.98
premium)
Other capital reserves 1454097.35 1454097.35
Total 4357948.33 4357948.33
39. Other miscellaneous income
In RMB
Amount occurred in the current period
Less: Less:
amount amount
written into written into After-tax
After-tax
Opening other gains other gains amount
Item Amount Less: amount
Closing
balance and and attributedbefore Income tax attributed balance
transferred transferred to minority
income tax expenses to the
into into shareholder
parent
gain/loss in gain/loss in s
previous previous
terms terms
I. Other
comprehen
sive
--
income that
3779277.53779277.5
cannot be
22
reclassified
into profit
or loss
Fair value
change of - -
investment 3779277.5 3779277.5
in other 2 2
equity tools
2. Other
misc.incomes
that will be 16218429 2177063.5 1859020.9 16404331
91825.61225959.90257.09
re- 2.04 3 3 2.97
classified
into gain
and loss
Cash flow -
1598225.01358491.2
hedge 1269329.1 239733.74 89162.12
06
reserve 4
Translation
difference
-
of foreign 578838.53 578581.44 257.09 45547.14
533034.30
exchange
statement
162Interim Report 2025 of China Fangda Group Co. Ltd.
Investment
real estate
1639866516390860
measured 91825.61 -13773.84 -78051.77
5.483.71
at fair
value
Other
158405012177063.51859020.916026403
miscellane 91825.61 225959.90 257.09
4.52335.45
ous income
40. Surplus reserves
In RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
83974716.2283974716.22
reserves
Total 83974716.22 83974716.22
41. Retained profit
In RMB
Item Current period Last period
Adjustment on retained profit of previous
4805192000.284772359940.45
period
Retained profit adjusted at beginning of year 4805192000.28 4772359940.45
Plus: Net profit attributable to owners of the
17289598.23116795117.62
parent
Common share dividend payable 53693711.35 85909938.16
Closing retained profit 4768787887.16 4803245119.91
42. Operational revenue and costs
In RMB
Amount occurred in the current period Occurred in previous period
Item
Income Cost Income Cost
Main business 1576352547.18 1287281242.59 2115537007.16 1724711866.23
Other businesses 21933902.86 20256406.69 18308580.60 12887318.75
Total 1598286450.04 1307537649.28 2133845587.76 1737599184.98
Breakdown of operating revenues and operating costs:
In RMB
Segment 1- Segment 2 - rail Segment 3 - real Segment 4 - new Segment 5 -
Contra Totalcurtain wall transit division estate segment energy other segments
ct
classifi Operat Operat Operat Operat Operat OperatTurno Turno Turno Turno Turno Turno
cation ing ing ing ing ing ingver ver ver ver ver ver
cost cost cost cost cost cost
118410553169222627795152232315981307
Busine 9228 3830 7703
91648106423499.6904.183.0987.10.002864553764
ss type 271.51 331.66 010.96
5.515.590092610.049.28
Including:
163Interim Report 2025 of China Fangda Group Co. Ltd.
Curtai
n wall
1184105511841055
system
91648106429164810642
and
5.515.595.515.59
materi
als
Subwa
y
31692226273169222627
screen
3499.6904.3499.6904.
door
00920092
and
service
Real
estate
rental
and
79515223237951522323
sales
183.0987.1183.0987.1
and
6161
propert
y
service
s
PV
power
genera 9228 3830 9228 3830
tion 271.51 331.66 271.51 331.66
produc
ts
77037703
Others 0.00 0.00
010.96010.96
By
118410553169222627795152232315981307
operati 9228 3830 7703
91648106423499.6904.183.0987.10.002864553764
ng 271.51 331.66 010.96
5.515.590092610.049.28
region
Including:
Domes
116810431943415195795152232314591221
tic 9228 3830 7703
59202842533292.7254.183.0987.10.003817895411
revenu 271.51 331.66 010.96
2.619.723767610.513.16
e
Overse
163241126312258743191389085583
as
462.9885.80206.650.24669.536.1
revenu
07635532
e
Classif
ied by
timing 1184 1055 31692 22627 79515 22323 1598 1307
922838307703
of 91648 10642 3499. 6904. 183.0 987.1 28645 53764
271.51331.66010.96
goods 5.51 5.59 00 92 6 1 0.04 9.28
transfe
r
Including:
Reven
ue
652906173863009417571431910837
recogn 5666 1050 9228 3830
099.0645.9900.5364.54843.6849.
ized at 572.47 507.21 271.51 331.66
45085240
a
certain
164Interim Report 2025 of China Fangda Group Co. Ltd.
point
in time
Reven
ue
recogn 1119 99336 25391 18451 73848 21273 1455 1199
7703
ized 62638 7779. 3598. 9540. 610.5 479.9 09160 16079
010.96
over a 6.47 64 50 34 9 0 6.52 9.88
period
of time
118410553169222627795152232315981307
922838307703
Total 91648 10642 3499. 6904. 183.0 987.1 0.00 28645 53764
271.51331.66010.96
5.515.590092610.049.28
(1) Performance obligation
For curtain wall materials real estate and other commodity sales transactions the Company completes the performance
obligations when the customer obtains the control of the relevant commodities; for providing building curtain wall Metro screen
door design production and installation and other service transactions the Company confirms the completed performance
obligations according to the performance progress during the whole service period. The contract price of the Company is usually
due within one year and there is no significant financing component.
(2) Information related to remaining performance obligations
As of June 30 2025 the Company's remaining contractual obligations are mainly related to the Company's engineering
contracts and the remaining contractual obligations are expected to be recognized as revenue according to the performance
progress in the future performance period of the corresponding engineering contracts.Information related to the transaction price allocated to remaining performance obligations: As of the end of this reporting
period the revenue amount corresponding to signed contracts that have not yet been performed or not yet fully performed is
RMB7261365734.90 of which RMB2129172779.98 is expected to be recognized in the second half of 2025
RMB2646082333.78 is expected to be recognized in 2026 and RMB2486110621.13 is expected to be recognized in 2027 and
beyond.The Company needs to comply with the disclosure requirements of the real estate industry in the Guidelines for the Self-discipline
and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.Top-5 projects in terms of income received and recognized in the reporting period:
In RMB
No. Item Balance
1 Fangda Town 67545399.85
2 Nanchang Fangda Center 9454141.51
43. Taxes and surcharges
In RMB
Item Amount occurred in the current period Occurred in previous period
City maintenance and construction tax 2501285.91 3231945.08
Education surtax 1646183.83 2248674.08
Property tax 10156874.34 9979214.78
Land using tax 951661.75 952023.94
165Interim Report 2025 of China Fangda Group Co. Ltd.
Vehicle usage tax 8280.00 8760.00
Stamp tax 1207094.02 2082243.80
Land VAT 29663.90 3489085.76
Others 190267.56 168005.35
Total 16691311.31 22159952.79
44. Management expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 62759919.24 57329867.92
Agencies 3730819.57 2839264.19
Depreciation and amortization 7662755.81 7207803.35
Office expense 5757836.53 4020332.41
Entertainment expense 2885580.60 5332709.90
Amortization of right of use assets and
2048192.672246218.58
lease fees
Lawsuit 984435.34 38842.74
Travel expense 1161746.58 2010823.16
Others 3181245.04 3815696.70
Total 90172531.38 84841558.95
45. Sales expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 14739070.64 12788956.33
Sales agency fee 527851.65 982162.22
Entertainment expense 3155262.57 2417855.86
Travel expense 1771703.48 1410466.32
Advertisement and promotion fee 522748.38 1313336.10
Amortization of right of use assets and
426382.65684175.82
lease fees
Others 1490559.11 3961319.31
Total 22633578.48 23558271.96
46. R&D cost
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 44988433.44 50364726.96
Material costs 10230946.89 26975019.70
Agencies 3892085.12 4956566.33
Depreciation costs 639840.42 840171.99
Amortization of intangible assets 210522.27 509458.78
Others 1552348.57 1993659.12
Total 61514176.71 85639602.88
47. Financial expense
In RMB
166Interim Report 2025 of China Fangda Group Co. Ltd.
Item Amount occurred in the current period Occurred in previous period
Interest expense 36331469.54 29211652.87
Less: Interest income 5980063.68 11466633.99
Acceptant discount 5957956.12 12789518.90
Exchange gain/loss -393308.06 -1419923.57
Commission charges and others 1664490.53 2375368.88
Total 37580544.45 31489983.09
48. Other gains
In RMB
Amount occurred in the current
Source Occurred in previous period
period
Government subsidies related to deferred income (related
964723.46313198.25
to assets)
Government subsidies directly included in current profits
4611992.338287811.03
and losses (related to income)
Other items related to daily activities and included in other
1326243.602861328.23
income
Total 6902959.39 11462337.51
49. Income from fair value fluctuation
In RMB
Source of income from fluctuation of fair
Amount occurred in the current period Occurred in previous period
value
Investment real estate measured at fair
2763052.08555662.75
value
Other non-current financial assets 3493.56 2702.12
Total 2766545.64 558364.87
50. Investment income
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Gains from long-term equity investment measured
-35164.25-34959.52
by equity
Investment income from disposal of trading
-890803.00
financial assets
Financial assets derecognized as a result of
-696903.65-1123208.42
amortized cost
Investment gain of financial products 50293.81
Others 1379.35 -33150.26
Total -680394.74 -2082121.20
51. Credit impairment loss
In RMB
Item Amount occurred in the current period Occurred in previous period
167Interim Report 2025 of China Fangda Group Co. Ltd.
Bad debt loss of other receivables -1073751.30 -781873.49
Bad debt loss of accounts receivable and
-57932230.26-7092925.51
notes receivable
Total -59005981.56 -7874799.00
52. Assets impairment loss
In RMB
Item Amount occurred in the current period Occurred in previous period
Contract asset impairment loss 4589393.55 -15876085.85
Total 4589393.55 -15876085.85
53. Assets disposal gains
In RMB
Source Amount occurred in the current period Occurred in previous period
Disposition not classified as possession
of fixed assets to be sold construction in
-1119266.833289.78
progress productive biological assets
and intangible assets
Including: Fixed assets -487985.15 3289.78
Intangible assets -631281.68
Disposal of use right assets 3981.41 -4780.00
Disposal of other non-current assets -407316.80
Total -1522602.22 -1490.22
54. Non-business income
In RMB
Amount occurred in the Amount accounted into the current
Item Occurred in previous period
current period accidental gain/loss
Penalty income 71985.44 58348.90 71985.44
Compensation received 37250.00 46335.00 37250.00
Others 110155.61 74076.65 110155.61
Total 219391.05 178760.55 219391.05
55. Non-business expenses
In RMB
Amount occurred in the Amount accounted into the current
Item Occurred in previous period
current period accidental gain/loss
Donation 530000.00 50000.00 530000.00
Loss from retirement of
20260.37136535.8320260.37
damaged non-current assets
Penalty and overdue fine 6018.23 84167.14 6018.23
Others 20592.64 265000.51 20592.64
Total 576871.24 535703.48 576871.24
168Interim Report 2025 of China Fangda Group Co. Ltd.
56. Income tax expenses
(1) Details about income tax expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Income tax expenses in this period 23819854.49 25927934.50
Deferred income tax expenses -26277346.25 -9408915.24
Total -2457491.76 16519019.26
(2) Adjustment process of accounting profit and income tax expense
In RMB
Item Amount occurred in the current period
Total profit 14849098.30
Income tax expenses calculated based on the legal (or applicable) tax rates 3712274.57
Impacts of different tax rates applicable for some subsidiaries 1386093.20
Impacts of income tax before adjustment 724411.22
Impact of non-taxable income -52123.31
Impacts of non-deductible cost expense and loss 1395221.69
Deductible temporary difference and deductible loss of unrecognized deferred
625.71
income tax assets
Profit and loss of associates and joint ventures calculated using the equity
8791.06
method
Impact of tax rate change on the opening balance of deferred income tax -1003679.47Taxation impact of R&D expense and (presented with "-”) -8629106.43
Income tax expenses -2457491.76
57. Other miscellaneous income
See Note 39 Other comprehensive income in this section for details.
58. Notes to the cash flow statement
(1) Cash inflow related to operation
Other cash received from business operations
In RMB
Item Amount occurred in the current period Occurred in previous period
Interest income 4751884.25 6489453.44
Subsidy income 20397030.14 9451485.75
Retrieving of bidding deposits 23759323.07 22816388.75
Other operating accounts 27631374.22 5152936.76
Total 76539611.68 43910264.70
Other cash paid for business operations
In RMB
169Interim Report 2025 of China Fangda Group Co. Ltd.
Item Amount occurred in the current period Occurred in previous period
Cash expenses 23490472.45 27505053.77
Bidding deposit paid 14048043.41 18891370.53
Net draft deposit net paid 180847576.76 261383332.31
Other trades 11765502.90 4256435.20
Total 230151595.52 312036191.81
(2) Cash related to financing
Other cash received from financing activities
In RMB
Item Amount occurred in the current period Occurred in previous period
Recovery of loan deposits 191000000.00
Principal and interest of pledged large
330600944.44
fixed-term certificates of deposit due
Total 191000000.00 330600944.44
Other cash paid related to financing activities
In RMB
Item Amount occurred in the current period Occurred in previous period
Financing fee 1692816.72
Principal and interest of lease liabilities 4272274.51 10536884.00
Bill discount financing deposit 83685800.00 115912636.08
Payment for repurchase of equity interest
98116151.32
in Fangda Zhiyuan
Total 89650891.23 224565671.40
Changes in liabilities arising from financing activities
□ Applicable □ Inapplicable
In RMB
Increase Decrease
Opening
Item Closing balance
balance Non-cash Non-cashChange in cash Change in cash
change change
Short-term 1663696422. 1297534833. 1210526332.
793093229.9964345920.2013074406.90
loans 48 54 23
Dividend
53693711.3553693711.35
payable
Non-current
liabilities due in 128469517.74 370796591.63 129295566.20 100067.84 369870475.33
1 year
Long-term 1137000000. 1100000000. 1325000000.
560000000.00352000000.00
loans 00 00 00
Lease liabilities 10652607.48 1841843.99 3956429.86 8538021.61
2939818547.1893093229.2040524111.2913934829.
Total 490678067.17 369130904.60
70990917
170Interim Report 2025 of China Fangda Group Co. Ltd.
(3) Explanation of cash flows presented on a net basis
Basis for adopting net
Item Relevant factual information Financial impact
presentation
Net margin paid on bills of
exchange etc. Corresponding deposits for bills of exchange Quick turnaround and
are presented on a net basis according to None
Net deposits received such as short maturitychanges in their balances
bills of exchange
59. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB
Amount of the Current Amount of the Previous
Supplementary information
Term Term
1. Net profit adjusted to cash flow related to business operations:
Net profit 17306590.06 117867277.03
Plus: Asset impairment provision 54416588.01 23750884.85
Fixed asset depreciation gas and petrol depreciation
18240913.3515141781.37
production goods depreciation
Depreciation of right to use assets 3753092.34 7908083.39
Amortization of intangible assets 3339231.01 3687708.38
Amortization of long-term amortizable expenses 2516462.04 1985263.44
Loss from disposal of fixed assets intangible assets and
1522602.221490.22
other long-term assets ("-" for gains)
Loss from fixed asset discard ("-" for gains) 20260.37 136535.83
Loss from fair value fluctuation ("-" for gains) -2766545.64 -558364.87
Financial expenses ("-" for gains) 42289425.66 42001171.77
Investment losses ("-" for gains) -16508.91 958912.78
Decrease of deferred income tax asset ("-" for increase) -18354312.72 -6770444.84
Increase of deferred income tax asset ("-" for increase) -7697073.63 7104496.65
Decrease of inventory ("-" for increase) -39908231.42 2846757.44
Decrease of operational receivable items ("-" for increase) 23553621.51 -307138399.56
Increase of operational receivable items ("-" for decrease) -367876286.41 -56399743.16
Others 3312944.31 -24054408.93
Cash flow generated by business operations net -266347227.85 -171530998.21
2. Major investment and financing activities with no cash
involved:
Debt transferred to assets
Convertible corporate bonds due within one year
Fixed assets under finance leases
3. Net change in cash and cash equivalents:
Balance of cash at period end 759598027.98 908462270.84
Less: Initial balance of cash 1031725216.34 779661118.42
Add: Ending balance of cash equivalents
171Interim Report 2025 of China Fangda Group Co. Ltd.
Less: Ending balance of cash equivalents
Net increase in cash and cash equivalents -272127188.36 128801152.42
(2) Composition of cash and cash equivalents
In RMB
Item Closing balance Opening balance
I. Cash 759598027.98 1031725216.34
Including: Cash in stock 1966.98 148.01
Bank savings can be used at any time 745786146.86 1024641201.90
Other monetary capital can be used at any time 13809914.14 7083866.43
III. Balance of cash and cash equivalents at end of term 759598027.98 1031725216.34
Including: restricted cash and cash equivalent used by parent
0.000.00
company or subsidiaries in the Group
(3) Monetary funds other than cash and cash equivalents
In RMB
Reasons for not being cash
Item Amount of the Current Term Amount of the Previous Term
and cash equivalents
Various deposits 351421548.82 776544406.75 Use restricted
Total 351421548.82 776544406.75
(4) Supplier Financing Arrangements
* Terms and Conditions of Supplier Financing Arrangements
Supplier Financing Arrangement 1: The Company handles reverse factoring business through the "e-Xintong" supply chain
financial service platform provided in collaboration with CCB Trust Co. Ltd. and China Construction Bank Corporation Shenzhen
Branch (hereinafter referred to as "CCB") offering services to suppliers holding electronic debt certificates on the "e-Xintong"
platform with payments due from the Company. Suppliers transfer their accounts receivable under the Company's electronic debt
certificates to CCB and apply for "e-Xintong" business services from CCB. After analysis and evaluation CCB provides "e-
Xintong" business services to suppliers if conditions are met. The Company's obligation to fulfill payment under the electronic
debt certificates is unconditional and irrevocable unaffected by any commercial disputes among parties involved in the transfer of
the electronic debt certificates. The Company will not claim offsets or defenses regarding this payment obligation. The Company
will transfer an amount equal to the amount under the electronic debt certificates on the committed payment date according to the
"e-Xintong" platform business rules.Supplier Financing Arrangement 2: The Company handles reverse factoring business through the "e-Zhangtong" supply
chain financial service platform provided by Agricultural Bank of China Limited Shenzhen Overseas Chinese Town Branch
(hereinafter referred to as "ABC") offering services to suppliers holding electronic debt certificates on the "e-Zhangtong" platform
with payments due from the Company. Suppliers transfer their accounts receivable under the Company's electronic debt
certificates to ABC and apply for "e-Zhangtong" business services from ABC. After analysis and evaluation ABC provides "e-
Zhangtong" business services to suppliers if conditions are met. The Company's obligation to fulfill payment under the electronic
debt certificates is unconditional and irrevocable unaffected by any commercial disputes among parties involved in the transfer of
the electronic debt certificates. The Company will not claim offsets or defenses regarding this payment obligation. The Company
172Interim Report 2025 of China Fangda Group Co. Ltd.
will transfer an amount equal to the amount under the electronic debt certificates on the committed payment date according to the
"e-Zhangtong" platform business rules.Supplier Financing Arrangement 3: The Company has signed a "Payment Agency Cooperation Agreement" with China
Merchants Bank Co. Ltd. Shenzhen Branch authorizing the bank to deduct payments from the payment account on the dates
specified in the "Detailed Payment Agency List" provided by the Group. When suppliers initiate financing applications China
Merchants Bank Co. Ltd. Shenzhen Branch uses the Company's credit line to handle domestic factoring for suppliers. After the
factoring matures the Company only needs to pay the factoring financing amount to China Merchants Bank Co. Ltd. Shenzhen
Branch without interest.Supplier Financing Arrangement 4: The Company handles reverse factoring (Easy Credit) business through the supply
chain financial service platform provided by Bank of China Shenzhen Futian Branch (hereinafter referred to as "BOC") offering
services to suppliers holding electronic debt certificates with payments committed by the Company. Suppliers transfer their
accounts receivable under the Company's electronic debt certificates to BOC and apply for Easy Credit business services from
BOC. After analysis and evaluation BOC provides Easy Credit business services to suppliers if conditions are met. The
Company's obligation to fulfill payment under the electronic debt certificates is unconditional and irrevocable unaffected by any
commercial disputes among parties involved in the transfer of the electronic debt certificates. The Company will not claim offsets
or defenses regarding this payment obligation. The Company will transfer an amount equal to the amount under the electronic debt
certificates on the committed payment date according to the supply chain financial service platform business rules.* Financial liabilities under supplier financing arrangements presented in the balance sheet and the carrying amount as
well as the amounts received by suppliers from financing providers
In RMB
Item June 30 2025 December 31 2024
Account payable 465305815.99 465016938.13
Including: Amounts received by suppliers 315304662.49 341199057.49
* Payment due date range for financial liabilities under supplier financing arrangements
Item June 30 2025
Financial liabilities under supplier financing arrangements 90-300 days from invoice receipt
Comparable accounts payable not under supplier financing
arrangements 0-180 days from invoice receipt
60. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Closing foreign currency
Item Exchange rate Closing RMB balance
balance
Monetary capital 199780751.65
Including: USD 16257483.15 7.1586 116380571.18
173Interim Report 2025 of China Fangda Group Co. Ltd.
Euro 1156121.23 8.4024 9714200.00
HK Dollar 37950585.16 0.9120 34609036.14
INR 14157376.31 0.0838 1185963.41
Vietnamese currency 1531120078.00 0.0003 420029.72
SGD 1770233.18 5.6179 9944992.98
AUD 5553815.13 4.6817 26001296.29
Philippine Peso 10971452.59 0.1267 1389677.10
UAE Dirham 69191.87 1.9509 134984.83
Account receivable 20126604.81
Including: USD 480640.49 7.1586 3440713.01
HK Dollar 8514295.26 0.9120 7764611.56
AUD 1890732.62 4.6817 8851842.90
INR 1.15 0.0838 0.10
Singapore Dollar 12360.00 5.6179 69437.24
Contract assets 113417652.34
Including: USD 8334017.05 7.1586 59659894.46
INR 20547248.31 0.0838 1721242.99
Euro 70.00 8.4024 588.17
HK Dollar 50953571.19 0.9120 46467109.24
AUD 409965.37 4.6817 1919334.87
Singapore Dollar 649616.87 5.6179 3649482.61
Other receivables 4334617.42
Including: USD 118488.82 7.1586 848214.06
HK Dollar 998610.75 0.9120 910683.07
INR 357010.62 0.0838 29906.78
SGD 403494.80 5.6179 2266793.44
AUD 47070.32 4.6817 220369.12
Philippine Peso 221398.00 0.1267 28042.94
UAE Dirham 1000.00 1.9509 1950.88
Saudi Riyal 15000.00 1.9105 28657.13
Account payable 6632014.37
Including: USD 185209.24 7.1586 1325838.87
HK Dollar 358374.35 0.9120 326819.49
INR 12128944.33 0.0838 1016041.66
AUD 840724.58 4.6817 3936020.27
Philippine Peso 40000.00 0.1267 5066.52
Singapore Dollar 3956.56 5.6179 22227.56
Other payables 2025808.08
Including: USD 274166.77 7.1586 1962650.24
HK Dollar 1175.27 0.9120 1071.79
AUD 13195.15 4.6817 61775.73
Philippine Peso 2450.00 0.1267 310.32
(2) The note of overseas operating entities should include the main operation places book keeping
currencies and selection basis. Where the book keeping currency is changed the reason should also be
explained.□ Applicable□ Inapplicable
174Interim Report 2025 of China Fangda Group Co. Ltd.
61. Leasing
(1) The Company is the leasee
□ Applicable □ Inapplicable
Variable lease payments not included in the measurement of the lease liability
□ Applicable□ Inapplicable
Lease costs for short-term leases or low-value assets with simplified treatment
□ Applicable □ Inapplicable
Item January-June 2025
Short term lease expenses with simplified treatment included in current profit and loss 26564504.32
Lease expenses of low value assets with simplified treatment included in current profit and
loss (except short-term lease) 106130.57
Interest expense on lease liabilities 308146.38
Total cash outflow related to leasing 29068766.82
(2) The Company as lessor
Operating leases as lessor
□ Applicable □ Inapplicable
In RMB
Including: Income related to variable lease payments not
Item Rental income
included in lease receipts
Rental income 54112963.67 153945.42
Total 54112963.67 153945.42
Financing leases as lessor
□ Applicable□ Inapplicable
Undiscounted lease receipts for each of the next five years
□ Applicable □ Inapplicable
In RMB
Annual undiscounted lease receipts
Item
Closing amount Opening amount
First year 123502534.17 134938024.44
Second year 88545985.75 106208000.52
Third year 55421714.07 72916499.50
Fourth year 33329146.31 53731466.05
Fifth year 24669166.20 32774253.57
Total undiscounted lease receipts after
91134256.2189046751.97
five years
175Interim Report 2025 of China Fangda Group Co. Ltd.
VIII. R&D Expenses
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 44988433.44 50364726.96
Material costs 10230946.89 26975019.70
Agencies 3892085.12 4956566.33
Depreciation costs 639840.42 840171.99
Amortization of intangible assets 210522.27 509458.78
Others 1552348.57 1993659.12
Total 61514176.71 85639602.88
Including: Expensed R&D expenditure 61514176.71 85639602.88
IX. Change to Consolidation Scope
There were no changes in the scope of consolidation for the Company during the reporting period.X. Equity in Other Entities
1. Interests in subsidiaries
(1) Group Composition
In RMB
Registered Place of Registered Shareholding percentage Obtaining
Company Business
capital business address Direct Indirect method
Shihui
International 21248100.0 Virgin Virgin
Investment 100.00% Incorporation
Holding Co. 0 Islands Islands
Ltd.Shenzhen
Hongjun 100000000.Shenzhen Shenzhen Investment 98.00% 2.00% Incorporation
Investment 00
Co. Ltd.Jiangxi
Production
Fangda
and sales of
Intelligent
100000000. new
Manufacturin Ganzhou Ganzhou 99.00% 1.00% Incorporation
00 materials and
g
composite
Technology
materials
Co. Ltd.Designing
Shenzhen manufacturin
Fangda 600000000. g and
Shenzhen Shenzhen 98.66% 1.34% Incorporation
Jianke Group 00 installation
Co. Ltd. of curtain
walls
Dongguan Installation
Fangda New 272800000. and sales of
Dongguan Dongguan 100.00% Incorporation
Material Co. 00 building
Ltd. curtain walls
Chengda 50000000.0 Chengdu Chengdu Trusted 100.00% Incorporation
176Interim Report 2025 of China Fangda Group Co. Ltd.
Fangda 0 processing of
Construction building
Technology curtain wall
Co. Ltd. materials
Designing
manufacturin
Fangda
14545200.0 g and
Australia Australia Australia 100.00% Incorporation
0 installation
Co. Ltd.of curtain
walls
Designing
Fangda manufacturin
Southeast g and
3000000.00 Vietnam Vietnam 100.00% Incorporation
Asia Co. installation
Ltd. of curtain
walls
Shanghai Intelligent
Fangda technology
100000000.
Zhijian Shanghai Shanghai new energy 30.00% 70.00% Incorporation
00
Technology automated
Co. Ltd technology
Design sale
Fangda
and
Jianke Hong
36594.00 Hong Kong Hong Kong installation 100.00% Incorporation
Kong Co.of building
Ltd.curtain wall
Construction
technology
intelligent
technology
Shanghai
automation
Fangda
50000000.0 technology
Jianzhi Shanghai Shanghai 100.00% Incorporation
0 design
Technology
production
Co. Ltd.and
installation
of building
curtain walls
Chengda Building
Fangda decoration
50000000.0
Curtain Wall Chengdu Chengdu and other 100.00% Incorporation
0
Technology construction
Co. Ltd. industry
Shenzhen
Production
Fangda
50000000.0 and sales of
Jianchuang Shenzhen Shenzhen 100.00% Incorporation
0 building
Technology
curtain walls
Co. Ltd.Shenzhen Design and
Fangda New 100000000. construction
Shenzhen Shenzhen 99.00% 1.00% Incorporation
Energy Co. 00 of PV power
Ltd. plants
Pingxiang
Design and
Fangda
10000000.0 construction
Luxin New Pingxiang Pingxiang 100.00% Incorporation
0 of PV power
Energy Co.plants
Ltd.
177Interim Report 2025 of China Fangda Group Co. Ltd.
Nanchang
Design and
Xinjian
10000000.0 construction
Fangda New Nanchang Nanchang 100.00% Incorporation
0 of PV power
Energy Co.plants
Ltd.Dongguan Design and
Fangda New 10000000.0 construction
Dongguan Dongguan 100.00% Incorporation
Energy Co. 0 of PV power
Ltd. plants
Production
Fangda processing
Zhichuang 105000000. and
Shenzhen Shenzhen 51.00% 49.00% Incorporation
Technology 00 installation
Co. Ltd. of subway
screen doors
Shenzhen
Qianhai
Software
Kechuangyu 5000000.00 Shenzhen Shenzhen 100.00% Incorporation
development
an Software
Co. Ltd.Fangda
Zhiyuan
Metro screen
Technology 8435.80 Hong Kong Hong Kong 100.00% Incorporation
door
(Hong Kong)
Co. Ltd.Production
Fangda
processing
Zhiyuan
10000000.0 and
Technology Wuhan Wuhan 100.00% Incorporation
0 installation
(Wuhan) Co.of subway
Ltd.screen doors
Fangda
Production
Zhiyuan
processing
Railway
and
Transportatio 1000000.00 Dongguan Dongguan 100.00% Incorporation
installation
n Equipment
of subway
(Dongguan)
screen doors
Co.Production
Fangda
processing
Zhiyuan
and
Technology 1000000.00 Nanchang Nanchang 100.00% Incorporation
installation
(Nanchang)
of subway
Co. Ltd.screen doors
Production
General processing
Railway and
47880.30 Singapore Singapore 100.00% Incorporation
Technology installation
Ltd. of subway
screen doors
Shenzhen
Fangda Real estate
200000000.
Property Shenzhen Shenzhen development 99.00% 1.00% Incorporation
00
Development and operation
Co. Ltd.Shenzhen 10000000.0 Property
Shenzhen Shenzhen 100.00% Incorporation
Fangda 0 management
178Interim Report 2025 of China Fangda Group Co. Ltd.
Property
Management
Co. Ltd.Fangda
(Jiangxi) Real estate
100000000.
Property Nanchang Nanchang development 100.00% Incorporation
00
Development and operation
Co. Ltd.Technology
development
and sales;
Shenzhen Invest in
Fangda industry;
50000000.0
Yunzhi Shenzhen Shenzhen Operation 100.00% Incorporation
0
Technology management
Co. Ltd. of science
and
technology
park
Shenzhen
Zhongrong
121000000. Business
Litai Shenzhen Shenzhen 55.00% Purchase
00 service
Investment
Co. Ltd.Production
Fangda New and sales of
Materials 99328800.0 new
Nanchang Nanchang 75.00% 25.00% Incorporation
(Jiangxi) Co. 0 materials and
Ltd. composite
materials
Inspection
technical
service and
Shenzhen Consolidatio
consultation
Fangda n of entities
10000000.0 of building
Yunzhu Shenzhen Shenzhen 100.00% under
0 safety and
Technology common
building
Co. Ltd. control
energy
saving
system
Inspection
technical
service and
Shenzhen Consolidatio
consultation
Yunzhu n of entities
of building
Testing 5000000.00 Shenzhen Shenzhen 100.00% under
safety and
Technology common
building
Co. Ltd. control
energy
saving
system
Shenzhen
Installation
Fangda
50000000.0 and sales of Non-business
Construction Shenzhen Shenzhen 100.00%
0 building combination
Technology
curtain walls
Co. Ltd.Fangda Installation
1596420.00 Singapore Singapore 100.00% Incorporation
Facade and sales of
179Interim Report 2025 of China Fangda Group Co. Ltd.
Singapore building
Pte Ltd curtain walls
FANGDA Installation
FACADE and sales of
1437680.00 Philippine Philippine 99.00% Incorporation
PHILIPPINE building
S INC. curtain walls
GENERAL
RAIL Metro screen
TECHNOLO door sales
1437680.00 Philippine Philippine 100.00% Incorporation
GY and
PHILIPPINE installation
S INC.Installation
FANGDA
and sales of
GULF 785113.60 Dubai Dubai 100.00% Incorporation
building
DMCC
curtain walls
GLOBAL Designing
MEGA manufacturin
INTERNATI g and
4313040.00 Saudi Arabia Saudi Arabia 100.00% Incorporation
ONAL installation
HOLDINGS of curtain
LIMITED walls
(2) Major non wholly-owned subsidiaries
In RMB
Dividend to be
Interest balance of
Shareholding of Profit and loss attributed to distributed to
Company minority shareholders in
minority shareholders minority shareholders minority
the end of the period
shareholders
Zhongrong
45.00%17830.7348325841.67
Litai
(3) Financial highlights of major non wholly owned subsidiaries
In RMB
Closing balance Opening balance
Compa Curren Non- Curren Non-Non- Total Total Non- Total Total
ny Curren t current Curren t currentcurrent of liabiliti current of liabiliti
t assets liabiliti liabiliti t assets liabiliti liabiliti
assets assets es assets assets es
es es es es
Zhong 20969 20973 10234 10234 20971 20974 10239 10239
3235031600
rong 8970. 1320. 0561. 0561. 1213. 2813. 1677. 1677..00.00
Litai 53 53 26 26 30 30 87 87
In RMB
Amount occurred in the current period Occurred in previous period
Company Total of Business Total of Business
Turnover Net profit misc. operation Turnover Net profit misc. operation
incomes cash flows incomes cash flows
Zhongrong -
55045.8639623.8439623.8455045.86-5060.33-5060.333614.11
Litai 313172.02
180Interim Report 2025 of China Fangda Group Co. Ltd.
2. Interests in joint ventures or associates
(1) Financial summary of insignificant joint ventures and associates
In RMB
Closing balance/amount occurred in this Opening balance/amount occurred in
period previous period
Associate:
Total book value of investment 56655809.72 56690973.97
Total shareholding
Net profit -35164.25 -34959.52
--Total of misc. incomes -35164.25 -34959.52
XI. Government Subsidies
1. Governmental subsidy recognized as receivable at the end of the report period
□ Applicable □ Inapplicable
Closing balance of accounts receivable: RMB1669026.05.Reasons for not receiving the estimated amount of government grants at the expected point in time
□ Applicable□ Inapplicable
2. Liabilities involving government subsidies
□ Applicable □ Inapplicable
In RMB
Amount
Other
included Other misc.change
Accounti Amount of new in non- gains Assets/earnin
Opening balance in the Closing balance
ng item subsidy operatin recorded in g-related
current
g this period
period
revenue
Deferred Assets-
10669612.1317776306.00964723.4627481194.67
earning related
Assets-
Total 10669612.13 17776306.00 964723.46 27481194.67
related
3. Government subsidies accounted into current profit or loss.
□ Applicable □ Inapplicable
In RMB
Accounting item Amount occurred in the current period Occurred in previous period
Other gains 5576715.79 8601009.28
Total 5576715.79 8601009.28
181Interim Report 2025 of China Fangda Group Co. Ltd.
XII. Risks of Financial Tools
1. Types of risks arising from financial instruments
The risks associated with the financial instruments of the Company arise from the various financial assets and liabilities
recognized by the Company in the course of its operations including credit risks liquidity risks and market risks.The management objectives and policies of various risks related to financial instruments are governed by the management
of the Company. The operating management is responsible for daily risk management through functional departments (for
example the Company's credit management department reviews the Company's credit sales on a case-by-case basis). The internal
audit department of the Company conducts daily supervision of the implementation of the Company's risk management policies
and procedures and reports relevant findings to the Company's audit committee in a timely manner.The overall goal of the Company's risk management is to formulate risk management policies that minimize the risks
associated with various financial instruments without excessively affecting the Company's competitiveness and resilience.A. Credit risk
Credit risk is caused by the failure of one party of a financial instrument in performing its obligations causing the risk of
financial loss for the other party. The credit risk of the Company mainly comes from monetary capital notes receivable accounts
receivable other receivables receivables financing contract assets etc. The credit risk of these financial assets comes from the
default of the counterparties and the maximum risk exposure is equal to the book amount of these instruments.The Company's money and funds are mainly deposited in the commercial banks and other financial institutions. The
Company believes that these commercial banks have higher reputation and asset status and have lower credit risk.For notes receivable accounts receivable other receivables receivables financing and contract assets the Company sets
relevant policies to control credit risk exposure. The Group set the credit line and term for debtors according to their financial
status external rating and possibility of getting third-party guarantee credit record and other factors. The Group regularly
monitors debtors' credit record. For those with poor credit record the Group will send written payment reminders shorten or
cancel credit term to lower the general credit risk.
(1) Significant increases in credit risk
The credit risk of the financial instrument has not increased significantly since the initial confirmation. In determining
whether the credit risk has increased significantly since the initial recognition the Company considers reasonable and evidenced
information including forward-looking information that can be obtained without unnecessary additional costs or effort. The
Company determines the relative risk of default risk of the financial instrument by comparing the risk of default of the financial
instrument on the balance sheet date with the risk of default on the initial recognition date to assess the credit risk of the financial
instrument from initial recognition.When one or more of the following quantitative and qualitative criteria are triggered the Company believes that the credit
risk of financial instruments has increased significantly: the quantitative criteria are mainly the probability of default in the
remaining life of the reporting date increased by more than a certain proportion compared with the initial recognition; the
qualitative criteria are the major adverse changes in the operation or financial situation of the major debtors the early warning of
customer list etc.
182Interim Report 2025 of China Fangda Group Co. Ltd.
(2) Definition of assets where credit impairment has occurred
In order to determine whether or not credit impairment occurs the standard adopted by our company is consistent with the
credit risk management target for related financial instruments and quantitative and qualitative indicators are considered.Major financial difficulties have occurred to the issuer or the debtor; Breach of contract by the debtor such as payment of
interest or default or overdue of principal; (B) The concession that the debtor would not make under any other circumstances for
economic or contractual considerations relating to the financial difficulties of the debtor; The debtor is likely to be bankrupt or
undertake other financial restructuring; The financial difficulties of the issuer or debtor lead to the disappearance of the active
market for the financial asset; To purchase or generate a financial asset at a substantial discount which reflects the fact that a
credit loss has occurred.Credit impairment in financial assets may be caused by a combination of multiple events not necessarily by events that can
be identified separately.
(3) Expected credit loss measurement
Depending on whether there is a significant increase in credit risk and whether a credit impairment has occurred the
Company prepares different assets for a 12-month or full expected credit loss. The key parameters of expected credit loss
measurement include default probability default loss rate and default risk exposure. Taking into account the quantitative analysis
and forward-looking information of historical statistics (such as counterparty ratings guaranty methods collateral categories
repayment methods etc.) the Company establishes the default probability default loss rate and default risk exposure model.Definition:
The probability of default refers to the possibility that the debtor will not be able to fulfill its obligation to pay in the next 12
months or throughout the remaining period.Breach Loss Rate means the extent of loss expected by the Company for breach risk exposure. Depending on the type of
counterparty the manner and priority of recourse and the different collateral the default loss rate is also different. The default loss
rate is the percentage of the risk exposure loss at the time of the default calculated on the basis of the next 12 months or the entire
lifetime.Exposure to default is the amount payable to the Company at the time of default in the next 12 months or throughout the
remaining life. Prospective information credit risks significantly increased and expected credit losses were calculated. Through the
analysis of historical data the Company has identified the key economic indexes that affect the credit risk of each business type
and the expected credit loss.The largest credit risk facing the Group is the book value of each financial asset on the balance sheet. The Group makes no
guarantee that may cause the Group credit risks.Among the Group’s receivables accounts receivable from top 5 customers account for 21.63% of the total accounts
receivable (beginning of the period: 20.50%); among other receivables other receivables from top 5 customers account for 73.79%
of the total other receivables (beginning of the period: 71.82%).B. Liquidity risk
183Interim Report 2025 of China Fangda Group Co. Ltd.
Liquidity risk is the risk of capital shortage when the Group needs to pay cash or settled with other financial assets. The
Company is responsible for the cash management of its subsidiaries including short-term investments in cash surpluses and loans
to meet projected cash requirements. The Company's policy is to regularly monitor short and long-term liquidity requirements and
compliance with borrowing agreements to ensure adequate cash reserves and readily available securities. The Company will also
consider negotiating with suppliers to adopt supplier financing arrangements to extend payment terms thereby alleviating the
Company's cash flow pressure.As of June 30 2025 the maturity of the Company's financial liabilities is as follows:
In RMB10000
June 30 2025
Item
Less than 1 year Within 1-3 years Over 3 years Total
Short-term loans 121052.63 121052.63
Notes payable 60386.14 60386.14
Account payable 184836.74 1878.48 640.74 187355.96
Other payables 5519.25 1738.33 4820.09 12077.67
Non-current liabilities due in 1 year 37092.07 37092.07
Other current liabilities 7343.31 7343.31
Long-term loans 22250.00 110250.00 132500.00
Lease liabilities 788.56 65.24 853.80
Total liabilities 416230.14 26655.37 115776.07 558661.58
(Continued)
In RMB10000
December 31 2024
Item
Less than 1 year Within 1-3 years Over 3 years Total
Short-term loans 166369.64 166369.64
Derivative financial liabilities 152.06 152.06
Notes payable 68118.81 68118.81
Account payable 213195.52 297.46 1166.51 214659.49
Other payables 8013.60 1109.24 2968.96 12091.80
Non-current liabilities due in 1 year 12846.95 12846.95
Other current liabilities 5083.56 5083.56
Long-term loans 96700.00 17000.00 113700.00
Lease liabilities 923.06 142.20 1065.26
Total 473780.14 99029.76 21277.67 594087.57
C. Market risk
(1) Credit risks
184Interim Report 2025 of China Fangda Group Co. Ltd.
The exchange rate risk of the Company mainly comes from the assets and liabilities of the Company and its subsidiaries in
foreign currency not denominated in its functional currency. Except for the use of Hong Kong dollars United States dollars
Australian dollars Vietnamese dong euro Indian rupees or Singapore currencies by its subsidiaries established in and outside the
Hong Kong Special Administrative Region other major businesses of the Company shall be denominated in Renminbi.As of Monday June 30 2025 the foreign currency financial assets and foreign currency financial liabilities of the Company
at the end of the period are listed in the description of foreign currency monetary items in Note VII 60.The Company pays close attention to the impact of exchange rate changes on the Company's exchange rate risk. The
Company continuously monitors the scale of foreign currency transactions and foreign currency assets and liabilities to minimize
foreign exchange risks. To this end the Company may avoid foreign exchange risks by signing forward foreign exchange
contracts or currency swap contracts.
(2) Exchange rate risk
The Group's interest rate risk mainly arises from long-term interest-bearing debts such as long-term bank loans. Financial
liabilities with floating interest rate cause cash flow interest rate risk for the Group. Financial liabilities with fixed interest rate
cause fair value interest rate risk for the Group. The Group decides the proportion between fixed interest rate and floating interest
rate according to the market environment and regularly reviews and monitors the combination of fixed and floating interest rate
instruments.The Finance Department at the Company's head office monitors the level of the Group's interest rates on an ongoing basis.The rising interest rate will increase the cost of the new interest-bearing debt and the interest expenditure on interest-bearing debt
which has not yet been paid by the Company at the floating rate and will have a significant adverse effect on the Company's
financial performance. Management will make adjustments in time according to the latest market conditions.As of June 30 2025 with all other risk variables remaining constant if the borrowing interest rate calculated on a floating
rate basis were to increase or decrease by 50 basis points the Company's annual net profit would decrease or increase by
RMB6624000 (December 31 2024: RMB4800000).
2. Hedging
(1) The Company conducts hedging business for risk management.
□ Applicable □ Inapplicable
Economic
Effective The impact of the
Corresponding risk Qualitative and relationships
achievement of corresponding
management quantitative between hedged
Item expected risk hedging activities
strategies and information about items and related
management on the risk
objectives the hedged risk hedging
objectives exposure
instruments
Utilizing the The Company uses The underlying The Company has Buy or sell
hedging function aluminum futures variables are established corresponding
Aluminum futures of futures tools to hedge standard aluminum relevant internal aluminum futures
hedging the Company aluminum-related prices and the management contracts to hedge
carries out raw materials in its values of hedged systems for the risk exposure
aluminum futures prospective items and hedging aluminum futures existing in the spot
185Interim Report 2025 of China Fangda Group Co. Ltd.
hedging business procurement instruments hedging business business side.to reasonably business. The change in opposite continuously
avoid the risks Company adopts directions due to evaluates hedge
brought about by the strategy of facing the same effectiveness to
fluctuations in the dynamic hedging hedged risks and ensure that the
prices of relevant of commodity there is a hedging
raw materials to its price risk exposure relationship of relationship is
operations to by adjusting its mutual hedging of effective during
enhance the futures contract risks. the designated
Company's overall position according accounting
ability to withstand to a certain periods. This
risks and to percentage of its controls the risk of
strengthen the prospective raw material
robustness of its procurement procurement price
operating exposure and the fluctuations within
activities. exposure* hedging a reasonable range
ratio is basically enhances the
the same as the Company's risk
quantity of the resistance
commodity capability and
represented by the increases the
futures position. stability of
operating
activities.
(2) The Company conducts eligible hedging operations and applies hedge accounting.
In RMB
Carrying value Cumulative fair value hedge
Hedge effectiveness
associated with adjustments to hedged items Impact of hedge accounting related
and sources of
Item hedged items included in the carrying to the Company's financial
hedge
and hedging value of the hedged item statements
ineffectiveness
instruments recognized
Types of hedge risk
Derivative financial assets:
RMB77600.00 other
Relevance of comprehensive income:
Price risk 77600.00 Inapplicable hedged items to RMB65960.00 deferred income tax
hedging instruments liabilities: RMB11640.00 cost of
sales: RMB-348601.81.Type
Derivative financial assets:
RMB77600.00 other
Relevance of comprehensive income:
Cash flow
77600.00 Inapplicable hedged items to RMB65960.00 deferred income tax
hedging
hedging instruments liabilities: RMB11640.00 cost of
sales: RMB-348601.81.
(3) The Company conducts hedging business for risk management and expects to achieve its risk management objectives
but does not apply hedge accounting.□ Applicable□ Inapplicable
186Interim Report 2025 of China Fangda Group Co. Ltd.
3. Financial Assets
(1) Classification of transfer methods
□ Applicable □ Inapplicable
In RMB
Way of Nature of financial Amount of financial
Derecognization Basis for judging derecognization
transfer assets transferred assets transferred
Promissory notes used for discounting
or endorsement are accepted by banks
Endorsement Outstanding promissory or enterprises with low credit ratings
Not
or notes in notes 56039576.30 discounting or endorsement does not
derecognized
discounting receivable affect recourse and the credit risk and
deferred payment risk associated with
the notes remain untransferred
Bankers' acceptances used for
discounting or endorsement are
Outstanding bankers'
accepted by banks with high credit
Endorsement acceptances in 20218009.94 Derecognization
ratings and the credit risk and deferred
receivables financing
payment risk associated with the
instruments are low
Outstanding receivables
Factoring 23631496.06 Derecognization Non-recourse factoring
in receivables financing
Total 99889082.30
(2) Financial assets derecognized due to transfers
□ Applicable □ Inapplicable
In RMB
Gain or loss
Transfer method of Amount of financial
Item related to the de-
financial assets assets derecognized
recognition
Outstanding bankers' acceptances in receivables
Endorsement 20218009.94
financing
Account receivable Factoring 23631496.06 -696903.65
Total 43849506.00 -696903.65
(3) Transfer of financial assets with continuing involvement in assets
□ Applicable□ Inapplicable
XIII. Fair Value
1. Closing fair value of assets and liabilities measured at fair value
In RMB
Closing fair value
Item First level fair Second level
Third level fair value Total
value fair value
187Interim Report 2025 of China Fangda Group Co. Ltd.
1. Continuous fair value
--------
measurement
(1) Derivative financial assets 77600.00 77600.00
(2) Receivables financing 387988.26 387988.26
(3) Other non-current financial assets 6523233.73 6523233.73
(4) Investment properties of which:
5825827116.965825827116.96
leased buildings
Including: leased buildings 5825827116.96 5825827116.96
Total assets measured at fair value
465588.265832350350.695832815938.95
continuously
Total assets measured at fair value
0.000.000.000.00
continuously
2. Discontinuous fair value
--------
measurement
2. Recognition basis of market value of continuous and discontinuous items measured at first level fair
value
For the financial instruments traded in the active market the Company determines their fair value based on their quoted
prices in the active market; for the financial instruments not traded in the active market the Company adopts valuation technology
to determine their fair value. The valuation models are mainly cash flow discount model and market comparable company model.The input value of valuation technology mainly includes risk-free interest rate benchmark interest rate exchange rate credit point
difference liquidity premium lack of liquidity discount etc.
3. Valuation technique and qualitative and quantitative information for key parameters of continuous
and discontinuous second level fair value items
For derivative financial assets and derivative financial liabilities with fair value of forward exchange contracts the fair
value is determined based on the market value of expected earnings at the balance sheet date.Receivables financed at fair value through other comprehensive income are notes receivable for which the fair value is
determined based on the book value due to the short remaining maturity.
4. Valuation technique and qualitative and quantitative information for key parameters of continuous
and discontinuous third level fair value items
Investment properties measured at fair value are appraised using the comparative and income approaches. Comparison
method: It selects a certain number of comparable examples compares them with the valuation object and processes the
comparable instance transaction prices according to the difference to obtain the value or price of the valuation object. The income
approach is a method of predicting the future earnings of the object of valuation and using the rate of compensation or
capitalization rate income multiplier to convert the future earnings into value to get the value or price of the object of valuation.
5. Continuous third level fair value measurement items adjustment information between opening and
closing book values and sensitivity analysis of unobservable parameters
None
188Interim Report 2025 of China Fangda Group Co. Ltd.
6. Switch between different levels switch reason and switching time policy
The Company takes the occurrence date of the events leading to the transition between levels as the time point to confirm
the transition between levels. In the period there is no switch in the financial assets measured at fair value between the first and
second level or transfer in or out of the third level.
7. Changes in valuation techniques during the period and reasons for the changes
None
8. 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
contract assets other receivables short-term borrowings notes payable accounts payables other payables and long-term payables.XIV. Related Parties and Transactions
1. Parent of the Company
Share of the Voting power of
Registered Registered
Parent Business parent co. in the the parent
address capital
Company company
Shenzhen Banglin Technologies Industrial
Shenzhen RMB30 million 11.11% 11.11%
Development Co. Ltd. investment
Industrial
Shengjiu Investment Ltd. Hong Kong HKD1 million 10.41% 10.41%
investment
Particulars about the parent of the Company
(1) All of the investors of Shenzhen Banglin Technology Development Co. Ltd. the holding shareholder of the Company
are natural persons. Among them Chairman Xiong Jianming is holding 85％ shares and Mr. Xiong Xi is holding 15% of the
shares.
(2) Among the top 10 shareholders Shenzhen Banglin Technology Development Co. Ltd. and Shengjiu Investment Co. Ltd.
are acting in concert.
(3) The final controller of the Company is Xiong Jianming.
2. Subsidiaries of the Company
For details of subsidiaries of the enterprise please refer to Note X rights and interests in other entities.
3. Joint ventures and associates
There are no important joint ventures or associates in this year.Information about other joint ventures or associates with related transactions in this period or with balance generated by related
transactions in previous period:
Joint venture or associate Relationship with the Company
Ganshang Joint Investment Affiliates of the Company
189Interim Report 2025 of China Fangda Group Co. Ltd.
4. Other associates
Other related parties Relationship with the Company
Jiangxi Business Innovative Property Joint Stock Co. Ltd. Affiliates of the Company
Shenzhen Yikang Real Estate Co. Ltd. Controlled subsidiaries
Shenzhen Qijian Technology Co. Ltd. (Qijian Technology) Common actual controller
Director manager and secretary of the Board Key management
5. Related transactions
(1) Related transactions for purchase and sale of goods provision and acceptance of services
Sales of goods and services
In RMB
Amount occurred in the
Affiliated party Related transaction Occurred in previous period
current period
Property service and sales of
Qijian Technology 14291.81 0.00
goods
(2) Related leasing
The Company is the leasor:
In RMB
Rental recognized in the Rental recognized in the
Name of the leasee Category of asset for lease
period period
Qijian Technology Houses & buildings 43428.57 0.00
(3) Related guarantees
The Company is the guarantor:
In RMB10000
Amount Completed or
Beneficiary party Start date Due date
guaranteed not
Three years after the expiration
Fangda Jianke 93000.00 December 28 2023 Yes
date of debt performance
Three years after the expiration
Fangda Jianke 24000.00 27 May 2024 Yes
date of debt performance
Three years after the expiration
Fangda Jianke 4000.00 20 June 2024 Yes
date of debt performance
Three years after the expiration
Fangda Jianke 39000.00 January 24 2024 Yes
date of debt performance
Three years after the expiration
Fangda Jianke 30000.00 October 20 2023 Yes
date of debt performance
Three years after the expiration
Fangda Jianke 30000.00 December 21 2023 Yes
date of debt performance
Three years after the expiration
Fangda Zhiyuan 36000.00 27 June 2024 Yes
date of debt performance
Three years after the expiration
Fangda Zhiyuan 15000.00 30 May 2024 Yes
date of debt performance
Fangda Zhiyuan 10000.00 September 25 2023 Three years after the expiration Yes
190Interim Report 2025 of China Fangda Group Co. Ltd.
date of debt performance
Three years after the expiration
Fangda Zhiyuan 10000.00 December 21 2023 Yes
date of debt performance
Three years after the expiration
Fangda Property 135000.00 February 25 2020 Yes
date of debt performance
Three years after the expiration
Fangda New Material 10000.00 July 8 2024 Yes
date of debt performance
Three years after the expiration
Fangda New Material 8500.00 November 2 2023 Yes
date of debt performance
Three years after the expiration
Fangda Zhijian 7000.00 8 May 2024 Yes
date of debt performance
Three years after the expiration
Fangda Yunzhu 1000.00 07 May 2024 Yes
date of debt performance
Three years after the expiration
Fangda Yunzhu 1000.00 28 June 2024 Yes
date of debt performance
Three years after the expiration
Fangda Yunzhu 600.00 03 June 2024 Yes
date of debt performance
Fangda Dongguan New Three years after the expiration
5000.00 26 August 2024 Yes
Material date of debt performance
Total amount of guarantee
459100.00
fulfilled
Three years after the expiration
Fangda Jianke 103000.00 January 17 2025 No
date of debt performance
Three years after the expiration
Fangda Jianke 39000.00 January 14 2025 No
date of debt performance
Three years after the expiration
Fangda Jianke 15000.00 11 May 2024 No
date of debt performance
Three years after the expiration
Fangda Jianke 48000.00 December 15 2024 No
date of debt performance
Three years after the expiration
Fangda Jianke 11400.00 August 16 2023 No
date of debt performance
Three years after the expiration
Fangda Jianke 50000.00 September 4 2024 No
date of debt performance
Three years after the expiration
Fangda Jianke 30000.00 November 11 2024 No
date of debt performance
Three years after the expiration
Fangda Jianke 25000.00 January 10 2025 No
date of debt performance
Three years after the expiration
Fangda Jianke 4900.00 28 April 2025 No
date of debt performance
Three years after the expiration
Fangda Jianke 20000.00 November 4 2024 No
date of debt performance
Three years after the expiration
Fangda Jianke 60000.00 27 June 2024 No
date of debt performance
Three years after the expiration
Fangda Jianke 35000.00 21 April 2025 No
date of debt performance
Three years after the expiration
Fangda Jianke 30000.00 27 March 2025 No
date of debt performance
Three years after the expiration
Fangda Jianke 20000.00 December 27 2024 No
date of debt performance
Three years after the expiration
Fangda Jianke 60000.00 December 19 2024 No
date of debt performance
Three years after the expiration
Fangda Zhijian 7000.00 30 June 2025 No
date of debt performance
Three years after the expiration
Fangda Zhiyuan 18000.00 December 15 2024 No
date of debt performance
Three years after the expiration
Fangda Zhiyuan 35800.00 19 June 2025 No
date of debt performance
191Interim Report 2025 of China Fangda Group Co. Ltd.
Three years after the expiration
Fangda Zhiyuan 20000.00 21 April 2025 No
date of debt performance
Three years after the expiration
Fangda Zhiyuan 20000.00 November 11 2024 No
date of debt performance
Three years after the expiration
Fangda Zhiyuan 15000.00 September 4 2024 No
date of debt performance
Three years after the expiration
Fangda Zhiyuan 10000.00 11 May 2024 No
date of debt performance
Three years after the expiration
Fangda Zhiyuan 15550.00 November 21 2023 No
date of debt performance
Three years after the expiration
Fangda Zhiyuan 15000.00 January 13 2025 No
date of debt performance
Three years after the expiration
Fangda Yunzhu 1000.00 25 March 2025 No
date of debt performance
Three years after the expiration
Fangda Yunzhu 700.00 21 April 2025 No
date of debt performance
Three years after the expiration
Fangda New Material 8500.00 27 February 2025 No
date of debt performance
Three years after the expiration
Fangda Property 110000.00 02 April 2025 No
date of debt performance
Fangda Intelligent Three years after the expiration
30000.00 22 February 2024 No
Manufacturing date of debt performance
Date of project contract
Fangda Zhiyuan 31896.02 17 February 2024 No
completion
Date of project contract
Fangda Zhiyuan 24885.16 17 February 2024 No
completion
Total amount of guarantee
914631.18
being performed
Explanation of related party guarantees: All the above related party guarantees are between internal equity
entities of the Company.
(4) Remuneration of key management
In RMB
Item Amount occurred in the current period Occurred in previous period
Key management personnel
5025036.515313183.00
compensation
(5) Other related party transactions
None
6. Receivable and payables due with related parties
(1) Receivable interest
In RMB
Closing balance Opening balance
Item Affiliated party Remaining book Bad debt Remaining book Bad debt
value provision value provision
Account
Qijian Technology 28580.84 285.81 85792.00 857.92
receivable
Other receivables Ganshang Joint 3791089.25 56487.23 3791089.25 56487.23
192Interim Report 2025 of China Fangda Group Co. Ltd.
Investment
Shenzhen Yikang Real
Other receivables 76062675.83 1133333.87 76062675.83 1133333.87
Estate Co. Ltd.
(2) Receivable interest
In RMB
Opening balance of book
Item Affiliated party Closing balance of book value
value
Shenzhen Yikang Real Estate
Other payables 26159711.72 26159711.72
Co. Ltd.Other payables Qijian Technology 4560.00 19760.00
Other payables Ganshang Joint Investment 3355.36 3355.36
XV. Commitment and Contingent Events
1. Major commitments
On November 6 2017 Fangda Real Estate Co. Ltd. a subsidiary of the Company and Bangshen Electronics (Shenzhen) Co.Ltd. signed the "Joint Development Agreement on Fangda Bangshen Industrial Park (Temporary Name) Urban Renewal Project"
and the two parties agreed to develop cooperatively. In order to develop urban renewing projects such as a "renovation project"
Fangda Real Estate provided Party A with property compensation through renovating and renovating the property allocation terms
agreed upon by both parties and obtained independent development rights of the project. As of June 30 2025 Fangda Real Estate
has paid a deposit of RMB20 million and a transitional compensation of RMB5 million.
(2) In July 2018 the Company's subsidiary Fangda Real Estate Co. Ltd. (Party A) signed a contract with Shenzhen Yikang Real
Estate Co. Ltd. (Party B1) and Shenzhen Qianhai Zhongzheng Dingfeng No. 6 Investment Enterprise (Limited Partnership) (Party
B2) "Shenzhen Henggang Dakang Village Project Cooperation Agreement". Party B agrees to transfer the entire equity of the
project company it holds and the entire development interest of the project to Party A. Party A shall pay Party B a total of
RMB600 million for the cooperation price. As of June 30 2025 Fangda Property has paid Party B and the project company
RMB50 million of security deposit RMB20 million of service fee RMB61937200 of equity transfer and RMB81126200 of
other related payments.The Company has no other commitments that should be disclosed by June 30 2025.
2. Contingencies
Significant contingencies on the balance sheet date:
(1) Contingent liabilities formed by material lawsuit or arbitration and their influences on the financial position
In August 2024 Fangda Construction Technology Company filed a lawsuit with the People's Court of Longgang District
Shenzhen requesting South China International Industrial Raw Materials City (Shenzhen) Co. Ltd. and South China City
Holdings Ltd. to pay Fangda Construction Technology Company the principal and interest of the project payment for the South
China International Electronic Industrial Raw Materials Logistics Zone (Phase I) totaling RMB46004481.42. The company also
claimed the priority right of compensation for construction project payments. As of the disclosure date of this report the case is
still under trial.
193Interim Report 2025 of China Fangda Group Co. Ltd.
*
In December 2024 Fangda Construction Technology Company filed a lawsuit with the People's Court of Futian District
Shenzhen requesting Shenzhen Suhao Investment Co. Ltd. (hereinafter referred to as "Suhao Company") and Zhang Shengjie to
pay Fangda Construction Technology Company the principal and interest of the project payment for the Ziyuan Building curtain
wall project totaling RMB18600899.46. The company also claimed the priority right of compensation for construction project
payments. As of the disclosure date of this report a first-instance judgment has been issued ruling that Suhao Company must pay
Fangda Construction Technology Company RMB18171796.03 and overdue interest (the overdue interest is calculated based on
RMB17814305.41 at a rate of 0.03% per day from November 1 2024 until the actual date of settlement with the RMB110000
already paid by Suhao Company to be deducted from the interest). Zhang Shengjie is jointly liable for the debt owed by Suhao
Company. It was also confirmed that Fangda Construction Technology Company holds the priority right of compensation for the
curtain wall project of the Ziyuan Building. Currently both parties are in communication for a settlement.* On June 19 2019 Langfang Aomei Jiyie Real Estate Development Co. Ltd. filed a lawsuit against Fangda Construction
Technology Company with the People's Court of Langfang Development Zone requesting the termination of the construction
contract compensation for delay and quality breach penalties totaling RMB13721315.00 double the return of the project
payment amounting to RMB6000000 and later added claims for repair project payments of RMB22935269.98. On September
11 2019 Fangda Construction Technology Company filed a counterclaim requesting payment for project payments and other
amounts totaling RMB13939863.27. As of the disclosure date of this report the case is still under trial.* In March 2022 Xiangheng Real Estate (Jinan) Co. Ltd. filed for arbitration with the Jinan Arbitration Commission later
amending the arbitration request to demand that Fangda Construction Technology Company bear costs due to quality issues in the
supply and installation of aluminum alloy doors windows louvers and curtain walls for the Jinan Kerry Integrated Development
Project (Phases I and II). These costs included deductions and expenses for repair rectification and rework totaling
RMB8995672.29 dismantling fees for construction gondolas of RMB4000 quality inspection and assessment fees for project
defects of RMB323271.91 and attorney fees of RMB690000.00. In April 2022 Fangda Construction Technology Company filed
a counter-arbitration application requesting Xiangheng Real Estate (Jinan) Co. Ltd. to pay project payments and expenses totaling
RMB18062462.28. As of the disclosure date of this report the Jinan Arbitration Commission has issued a preliminary ruling on
the undisputed portion of the counter-arbitration application filed by Fangda Construction Technology Company requiring
Xiangheng Real Estate (Jinan) Co. Ltd. to first pay Fangda Construction Technology Company RMB5073672.92 and interest.Fangda Construction Technology Company has applied for compulsory enforcement of this portion. The remaining parts of the
case are being consolidated for trial.
(2) Pending major lawsuits
* In September 2022 Fangda Real Estate Co. Ltd. filed a lawsuit to the People's Court of Nanshan District Shenzhen
requiring Shenzhen Hongtao Group Co. Ltd. to pay the total principal and interest of Fangda Real Estate Co. Ltd. to Fangda Real
Estate Co. Ltd. for the purchase of building 3 # in Fangda City amounting to RMB56527427.01 and Hongtao Company's
counterclaim party Dada Real Estate Co. Ltd. requested to cancel the signed Supplementary Agreement on Real Estate Sales and
pay the liquidated damages of RMB44046859.04 for overdue certificate processing. The court has issued a first instance
judgment ruling that Hongtao Company shall pay Fangda Real Estate Company the purchase price of RMB40127678.19 and
overdue payment interest (temporarily calculated as RMB8418135.54 until June 30 2022). The subsequent interest shall be
calculated based on RMB40127678.19 and continue to be calculated until the actual payment date according to the loan market
quotation interest rate standard published by the National Interbank Funding Center. Reject all counterclaim requests from
194Interim Report 2025 of China Fangda Group Co. Ltd.
Hongtao Company. Both parties later filed an appeal. As of the disclosure date of this report the second instance judgment has
been issued and the original judgment has been upheld. Currently the case has entered the execution stage.* In April 2023 Fangda Jianke filed a lawsuit with the Guangzhou Intermediate People's Court demanding the
termination of the construction contract signed with Guangzhou Kaidar Investment Co. Ltd. for the Kaidar Hub International
Plaza project and requiring Guangzhou Kaidar Investment Co. Ltd. to pay the principal amount of the project payment of
RMB113529244.60 and interest to Fangda Jianke and claiming the priority right to receive compensation for the construction
project price. As of the date of this report the court has issued a first instance judgment stating that Kedar is required to pay the
principal amount of the project payment of RMB113，529，244.60 and corresponding interest to Fangda Jianke and has the
priority right to be compensated for the discount or auction price of the project curtain wall. Currently the case has entered the
execution stage.* In September 2022 Fangda Jianke Co. Ltd. filed a lawsuit to the People's Court of Longhua District requiring
Longguang Engineering Construction Co. Ltd. to pay the total principal and interest of the project funds of Longguang Jiuzuan
Project Plot 05 and Plot 09 to Fangda Construction Technology Co. Ltd. totaling RMB33197543.00. As of the disclosure date of
this report the case regarding the Jiuzuan Plot 05 project has concluded with both first and second instance judgments. The first
instance judgment ruled that Longguang Company must pay Fangda Construction Technology Company project payments of
RMB7709679.55 a quality guarantee deposit of RMB6033911.38 and corresponding interest while also granting priority
compensation rights on the proceeds from the sale or auction of the curtain wall fabrication and installation project. The second
instance judgment upheld the first instance decision regarding the project payments quality guarantee deposit corresponding
interest and priority compensation rights and additionally ruled that Shenzhen Longguang Junjing Real Estate Development Co.Ltd. the owner of the Longguang Jiuzuan Plot 05 project is jointly liable for the debt to Fangda Construction Technology
Company. The case has entered the enforcement stage. As of the disclosure date of this report the case regarding the Jiuzuan Plot
09 project has concluded with both first and second instance judgments. The first instance judgment ruled that Longguang
Company must pay Fangda Construction Technology Company project payments of RMB9166924.08 a quality guarantee
deposit of RMB4875762.96 and corresponding interest while also granting priority compensation rights on the proceeds from
the sale or auction of the curtain wall fabrication and installation project. The second instance judgment upheld the first instance
decision regarding the project payments quality guarantee deposit corresponding interest and priority compensation rights and
additionally ruled that Shenzhen Longguang Junjing Real Estate Development Co. Ltd. the owner of the Longguang Jiuzuan Plot
09 project is jointly liable for the debt to Fangda Construction Technology Company. The case has entered the enforcement stage.
* In November 2023 Fangda Construction Technology Company filed a lawsuit with the People's Court of Honggutan
District Nanchang City requesting Jiangxi Huilian Real Estate Co. Ltd. and Jiangxi Boneng Industrial Group Co. Ltd. to pay the
project payments and interest totaling RMB45309399.07 for the Nanchang Shangle Center project and claimed priority
compensation rights for the project payments. The first instance judgment ruled that Jiangxi Huilian Real Estate Co. Ltd. must pay
Fangda Construction Technology Company RMB38800206.53 and interest and that Jiangxi Boneng Industrial Group Co. Ltd. is
jointly liable for RMB37563144.42 of the project payments and interest. However the court did not support the request for the
accelerated maturity of the quality guarantee deposit and the priority compensation rights for the project payments. Fangda
Construction Technology Company appealed and the second instance judgment supported the priority compensation rights. As of
the disclosure date of this report the case has entered the enforcement stage.
(3) Contingent liabilities and their financial impact arising from providing debt guarantees for other entities.
By June 30 2025 the Company has provided loan guarantees for the following entities:
195Interim Report 2025 of China Fangda Group Co. Ltd.
Name of guaranteed entity Guarantee Amount (inRMB10000) Term
Fangda Property Guarantee and mortgageguarantee 110000.00 2025.04.02-2040.03.28
Fangda Intelligent Manufacturing Guarantee 29000.00 2024.03.15-2030.03.14
Fangda Jianke Guarantee 10500.00 2025.03.19-2026.03.18
Fangda Jianke Guarantee 4000.00 2025.03.21-2026.03.21
Fangda Jianke Guarantee 5000.00 2025.06.17-2026.06.16
Fangda Jianke Guarantee 4900.00 2025.05.23-2026.05.18
Fangda Jianke Guarantee 29800.00 2024.06.26-2026.06.25
Fangda Jianke Guarantee 4000.00 2025.06.30-2026.06.17
Fangda Yunzhu Guarantee 600.00 2025.03.25-2026.03.24
Fangda Zhiyuan Guarantee 2400.00 2024.07.12-2025.07.11
Fangda Zhiyuan Guarantee 1200.00 2025.03.31-2026.03.30
Fangda Zhiyuan Guarantee 4000.00 2025.06.20-2026.06.19
Total 205400.00
Note 1: Contingent liabilities caused by guarantees provided for other entities are all related guarantees between interested
entities in the Company.Notes 2: The Company’s property business provides periodic mortgage guarantee for property purchasers. The term of the
periodic guarantee lasts from the effectiveness of guarantee contracts to the completion of mortgage registration and transfer of
housing ownership certificates to banks. As of June 30 2025 the Company's outstanding amount for the above-mentioned phased
guarantees was RMB4000000.
(4) Other contingent liabilities and their influences
As of June 30 2025 the Company has no other significant contingencies that need to be disclosed.
3. Others
Status of non-revocation of company as at June 30 2025:
Currency Guarantee balance(original currency) Deposit (RMB) Credit line used (RMB)
CNY 844513604.71 835397.96 843678206.75
INR 38164259.78 561489.69 2635530.35
Hong Kong dollars (HKD) 22259665.45 15000000.00 6301285.82
United States dollars
(USD) 3562595.83 1395593.19 24107605.31
SGD 25299268.00 142128757.70
AUD 7335850.00 34344248.95
EUR 3771764.01 31691869.92
Total 17792480.84 1084887504.80
196Interim Report 2025 of China Fangda Group Co. Ltd.
XVI. Post-balance-sheet Events
1. Notes to other issues in post balance sheet period
As of August 21 2025 (the report approval date by the Board of Directors) the Company has no post-balance sheet events that
need to be disclosed.XVII. Other Material Events
1. Segment information
(1) Recognition basis and accounting policy for segment report
The Group divides its businesses into five reporting segments. The reporting segments are determined based on financial
information required by routine internal management. The Company's management regularly evaluates the operating results of
these reporting segments to decide on the allocation of resources and to assess their performance.The reporting segments are:
* Curtain wall division: production and sales of curtain wall materials design production and installation of building
curtain walls curtain wall testing and maintenance services;
* Rail transit branch: assembly and processing of subway screen doors screen door detection and maintenance services;
(3) Real estate segment: development and operating of real estate on land of which land use right is legally obtained by the
Company; property management;
(4) New energy segment: photovoltaic power generation photovoltaic power plant sales photovoltaic equipment R & D
installation and sales and photovoltaic power plant engineering design and installation
(5) Others
The segment report information is disclosed based on the accounting policies and measurement standards used by the
segments when reporting to the management. The policies and standards should be consistent with those used in preparing the
financial statement.
(2) Financial information
In RMB
Offset
Item Curtain wall Rail transport Real estate New energy Others between Total
segments
119367648316923499.83542188.711201355.016661422.6159828645
Turnover 9604344.88
5.00001930.04
Including:
118491648316923499.79515183.0159828645
external 9228271.51 7703010.96 0.00
5.510060.04
transaction
197Interim Report 2025 of China Fangda Group Co. Ltd.
income
Inter-
segment 16661422.6
8759999.490.004027005.65376073.373498344.130.00
transaction 3
income
Including:
major 117596270 310463389. 83447773.4 11201355.0 14327017.2 157635254
9604344.88
business 1.41 65 1 9 6 7.18
turnover
Operating 106222165 228052956. 22396659.0 130753764
3830331.660.008963948.59
cost 0.88 28 4 9.28
Including:
104935388220362627.22396659.0128728124
major 3830331.66 0.00 8662263.85
8.215242.59
business cost
--
Operation 178995753. 29168076.1 34297614.0 275542222.
1070929.9611309441.743319290.2
cost 62 6 1 27
46
-
Operating 59702466.5 26847915.6 22510796.8 51016764.3 15206578.4
47540919.54703083.26
profit/(loss) 6 6 3 1 9
1
666274357979218834.612872185300049542.345137703440422917131178816
Total assets
8.38105.46758.240.5578.37
Total 418272342 584041716. 327248834 165035015. 120077045 242676041 697829854
liabilities 0.06 43 9.07 97 7.95 6.23 3.25
(3) Others
Regional information on operating revenues:
In RMB
Item H1 2025 H1 2024
In China 1459381780.51 1955457106.44
Out of China 138904669.53 178388481.32
Total 1598286450.04 2133845587.76
XVIII. Notes to Financial Statements of the Parent
1. Account receivable
(1) Account age
In RMB
Age Closing balance of book value Opening balance of book value
Within 1 year (inclusive) 3965412.17 2857394.06
Over 3 years 359129.89 359129.89
Including: 4-5 years 222666.00 359129.89
Over 5 years 136463.89
Total 4324542.06 3216523.95
198Interim Report 2025 of China Fangda Group Co. Ltd.
(2) Disclosure by bad debt accrual method
In RMB
Closing balance Opening balance
Remaining book Remaining book
Bad debt provision Bad debt provision
Type value Book value Book
Proporti Provisio value Proporti Provisio value
Amount Amount Amount Amount
on n rate on n rate
Account
receivab
le for
which
432454357950.396659321652331398.288512
bad debt 100.00% 8.28% 100.00% 10.30%
2.06691.373.95605.35
provisio
n is
made by
group
Including:
Portfolio
432454357950.396659321652331398.288512
3.100.00%8.28%100.00%10.30%
2.06691.373.95605.35
Others
432454357950.396659321652331398.288512
Total 100.00% 8.28% 100.00% 10.30%
2.06691.373.95605.35
Provision for bad debts by category: Portfolio 3: Others
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 3965412.17 28947.51 0.73%
1-2 years
2-3 years
3-4 years
4-5 years 222666.00 192539.29 86.47%
Over 5 years 136463.89 136463.89 100.00%
Total 4324542.06 357950.69
Group recognition basis:
See 10. Financial Tools in Chapter VIII V Important Accounting Policies and Accounting Estimates for the recognition criteria
and instructions for withdrawing bad debt reserves by portfolio
If the provision for bad debts on accounts receivable is being made based on the expected credit loss general model:
□ Applicable□ Inapplicable
(3) Bad debt provision made returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Type Opening balance Written-back Closing balance
Provision Canceled Others
or recovered
Combination 3: Other 331398.60 26552.09 357950.69
199Interim Report 2025 of China Fangda Group Co. Ltd.
business models
Total 331398.60 26552.09 357950.69
(4) Accounts receivable and contract assets with the top-5 ending balances grouped by party owed
In RMB
Closing balance of
Closing
Closing balance Closing balance of Percentage of total ending provision for bad debts
balance of
Entity of accounts accounts receivable balance of accounts on accounts receivable
contract
receivable and contract assets receivable and contract assets and impairment of
assets
contract assets
No.1 1899593.71 1899593.71 43.93% 13867.03
No.2 1846249.87 1846249.87 42.69% 13477.62
No.3 359129.89 359129.89 8.30% 329003.18
No.4 171325.71 171325.71 3.96% 1250.68
No.5 16470.00 16470.00 0.38% 120.23
Total 4292769.18 4292769.18 99.26% 357718.74
2. Other receivables
In RMB
Item Closing balance Opening balance
Other receivables 1222140569.04 1622103166.85
Total 1222140569.04 1622103166.85
(1) Other receivables
1) Other receivables are disclosed by nature
In RMB
By nature Closing balance of book value Opening balance of book value
Others 48350.46 62836.90
Accounts between related parties within
1222092939.001622041266.22
the scope of consolidation
Total 1222141289.46 1622104103.12
(2) Account age
In RMB
Age Closing balance of book value Opening balance of book value
Within 1 year (inclusive) 84998873.24 53408271.79
1-2 years 300592240.88 642978380.00
2-3 years 390808980.00 92577980.00
Over 3 years 445741195.34 833139471.33
Including: 3-4 years 340082699.86 680897404.79
4-5 years 105658495.48 152242066.54
Total 1222141289.46 1622104103.12
200Interim Report 2025 of China Fangda Group Co. Ltd.
(3) Disclosure by bad debt accrual method
In RMB
Closing balance Opening balance
Remaining book Remaining book
Bad debt provision Bad debt provision
Type value Book value Book
Proporti Provisio value Proporti Provisio value
Amount Amount Amount Amount
on n rate on n rate
Provisio
n for bad
122214122214162210162210
debts by 100.00% 720.42 0.00% 100.00% 936.27 0.00%
1289.460569.044103.123166.85
combina
tion
Including:
First 48350.4 47630.0 62836.9 61900.6
0.00%720.421.49%0.00%936.271.49%
stage 6 4 0 3
Account
s
between
related
parties 122209 122209 162204 162204
100.00%0.000.00%100.00%0.000.00%
within 2939.00 2939.00 1266.22 1266.22
the
scope of
consolid
ation
122214122214162210162210
Total 100.00% 720.42 0.00% 100.00% 936.27 0.00%
1289.460569.044103.123166.85
Provision for bad debts by category: Stage one
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
First stage 48350.46 720.42 1.49%
Total 48350.46 720.42
Provision for bad debts by category name: Intercompany transactions within the consolidation scope
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Accounts between related
parties within the scope of 1222092939.00 0.00 0.00%
consolidation
Total 1222092939.00 0.00
Provision for bad debts based on general model of expected credit losses
In RMB
First stage Second stage Third stage
Bad debt provision Expected credit Expected credit loss for Expected credit loss for the Total
losses in the next the entire duration (no entire duration (credit
12 months credit impairment) impairment has occurred)
201Interim Report 2025 of China Fangda Group Co. Ltd.
Balance on Wednesday
936.27936.27
January 1 2025
Balance on Wednesday
January 1 2025 in the current
period
Provision -215.85 -215.85
Balance on Monday June 30
720.42720.42
2025
The basis for stage division and the provision ratio for bad debts are detailed in Chapter VIII VII of the Notes to the Consolidated
Financial Statements under "Other Receivables."
Changes in book balances with significant changes in the current period
□ Applicable□ Inapplicable
4) Bad debt provision made returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Opening
Type
balance Written-back
Closing balance
Provision Write-off Others
or recovered
Provision for bad debts
936.27-215.85720.42
by combination
Total 936.27 -215.85 720.42
5) Balance of top 5 other receivables at the end of the period
In RMB
Balance of
bad debt
provision
Entity By nature Closing balance Age Percentage (%)
at the end
of the
period
Shenzhen Fangda 5645294.16 Less than 1 year
Accounts between related
Property 300592240.88 1-2 years
parties within the scope of 76.25%
Development Co.consolidation 373808980.00 2-3 years
Ltd. 251883997.46 3-4 years
Fangda (Jiangxi) 17000000.00 2-3 years
Accounts between related
Property
parties within the scope of 88198702.40 3-4 years 14.76%
Development Co.consolidation
Ltd. 75198702.39 4-5 years
Shenzhen Fangda Accounts between related
Jianke Group Co. parties within the scope of 79140814.32 Less than 1 year 6.48%
Ltd. consolidation
Shihui Accounts between related
International parties within the scope of 30459793.09 4-5 years 2.49%
Holding Co. Ltd. consolidation
Shenzhen Fangda Accounts between related
126000.00 Less than 1 year 0.01%
Jianchuang parties within the scope of
202Interim Report 2025 of China Fangda Group Co. Ltd.
Technology Co. consolidation
Ltd.Total 1222054524.70 99.99%
3. Long-term share equity investment
In RMB
Closing balance Opening balance
Impair Impair
Item Remaining book ment Remaining book ment
Book value Book value
value provis value provis
ion ion
Investment in
1657062530.001657062530.001657062530.001657062530.00
subsidiaries
Total 1657062530.00 1657062530.00 1657062530.00 1657062530.00
(1) Investment in subsidiaries
In RMB
Beginning Change (+-) Balance of
balance of impairment
Invested Increa Decre
Opening book value impairme Impairmesed ased Closing book value provision atentity
nt nt Othersinvest invest the end of
provisions provisionment ment the period
Fangda
751950000.00751950000.00
Jianke
Fangda
Jiangxi
74496600.0074496600.00
New
Material
Fangda
198000000.00198000000.00
Property
Shihui
Internation 61653.00 61653.00
al
Fangda
New 99000000.00 99000000.00
Energy
Fangda
Hongjun 98000000.00 98000000.00
Investment
Fangda
Intelligent
198000000.00198000000.00
Manufactur
ing
Fangda
237554277.00237554277.00
Zhiyuan
Total 1657062530.00 1657062530.00
4. Operational revenue and costs
In RMB
203Interim Report 2025 of China Fangda Group Co. Ltd.
Amount occurred in the current period Occurred in previous period
Item
Income Cost Income Cost
Main business 11205926.52 10908179.61 38387.33
Total 11205926.52 10908179.61 38387.33
Breakdown of operating revenues and operating costs:
In RMB
Others Total
Contract classification
Turnover Operating cost Turnover Operating cost
Business type 11205926.52 0.00 11205926.52 0.00
Including: Other businesses 11205926.52 0.00 11205926.52 0.00
By operating region 11205926.52 0.00 11205926.52 0.00
Including: in China 11205926.52 0.00 11205926.52 0.00
Classified by timing of goods
11205926.520.0011205926.520.00
transfer
Including: Revenue recognized
11205926.520.0011205926.520.00
over a period of time
Total 11205926.52 0.00 11205926.52 0.00
Information related to the transaction price allocated to remaining performance obligations: As of the end of this reporting
period the revenue amount corresponding to signed lease contracts that have not yet been performed or not yet fully performed is
RMB67713499.64 of which RMB11001470.15 is expected to be recognized in the second half of 2025 RMB12383593.06 is
expected to be recognized in 2026 and RMB44328436.43 is expected to be recognized in 2027 and beyond.
5. Investment income
In RMB
Item Amount occurred in the current period Occurred in previous period
Gains from long-term equity investment
25500000.0062142383.24
measured by costs
Investment gain obtained from disposal
47167.38
of long-term equity investment
Others 48151.98
Total 25548151.98 62189550.62
XIX. Supplementary Materials
1. Detailed accidental gain/loss
□ Applicable □ Inapplicable
In RMB
Item Amount Notes
Gain/loss of non-current assets -1522602.22
Government grants recognized in the current period's profit or loss
(except for government grants that are closely related to the
Company's normal business operations in line with national policies 3459933.02
and in accordance with defined criteria and have a continuous impact
on the Company's profit or loss)
204Interim Report 2025 of China Fangda Group Co. Ltd.
Gains and losses from changes in the fair value of financial assets and
liabilities held by non-financial corporations and gains and losses from
the disposal of financial assets and liabilities except for effective 55166.72
hedging operations related to the Company's normal business
operations
Expenditures for employee
One-time expenses incurred by the enterprise due to the
placement incurred due to
discontinuation of related business activities such as expenditures for -1145361.48
the relocation of the
employee placement.Company's production site.Accumulated fair value
Gain/loss from change of fair value of investment property measured changes transferred due to
2763052.08
at fair value in follow-up measurement the disposal of investment
properties.Other non-business income and expenditures other than the above -357480.19
Less: Influenced amount of income tax 346644.61
Impact on minority interests (after tax). -38.58
Total 2906101.90 --
Other gain/loss items satisfying the definition of non-recurring gain/loss account:
□ Applicable□ Inapplicable
The Company has no other gain/loss items satisfying the definition of non-recurring gain/loss account
Circumstance that should be defined as recurrent profit and loss to Explanation Announcement of Information Disclosure No. 1 -
Non-recurring gain/loss
□ Applicable□ Inapplicable
2. Net income on asset ratio and earning per share
Weighted average Earning per share
Profit of the report period net income/asset Basic earnings per share Diluted Earnings per share
ratio (yuan/share) (yuan/share)
Net profit attributable to common
0.28%0.01610.0161
shareholders of the Company
Net profit attributable to the common
owners of the PLC after deducting of 0.23% 0.0134 0.0134
non-recurring gains/losses
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profits and assets in financial statements disclosed according to the international
and Chinese account standards
□ Applicable□ Inapplicable
(2) Differences in net profits and assets in financial statements disclosed according to the international
and Chinese account standards
□ Applicable□ Inapplicable
205Interim Report 2025 of China Fangda Group Co. Ltd.
(3) Differences in financial data using domestic and foreign accounting standards the overseas institution
name should be specified if the difference in data audited by an overseas auditor is adjusted
None
206Interim Report 2025 of China Fangda Group Co. Ltd.
Chapter IX Other Submitted Data
I. Other Major Social Safety Issues
Whether the listed company and its subsidiaries have any other major social safety issues:
□Yes□No □Not applicable
Whether there were any administrative penalties during the reporting period:
□Yes□No □Not applicable
II. Register of Activities such as Research Communication and Interviews during the
Reporting Period
□ Applicable □ Inapplicable
Main content
involved and Disclosure of
Time/date Place Way Visitor Visitor
materials information
provided
Investors Investor
Online participating in Relationship
Business and
Network communication the Company's Record Form
29 April 2025 Others future
platform on online 2024 on
development
platforms Performance www.cninfo.co
Presentation m.cn
III. Financial Transactions between the Listed Company and Its Controlling Shareholder
and Other Related Parties
□ Applicable□ Inapplicable
207
沪公网安备31011802005267号
