Interim Financial Statements 2024 of China Fangda Group Co. Ltd.CHINA FANGDA GROUP CO. LTD.
2024 Financial Statements
August 2024
1Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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.June 30 2024
In RMB
Item Closing balance Opening balance
Current asset:
Monetary capital 1685006677.59 1425151116.24
Settlement provision
Outgoing call loan
Transactional financial assets
Derivative financial assets 173737.06
Notes receivable 35745717.64 47372881.27
Account receivable 1022698982.69 911486914.19
Receivable financing 4668854.47 6979428.14
Prepayment 40683545.08 33976569.36
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other receivables 151311534.99 145113323.33
Including: interest receivable
Dividend receivable
Repurchasing of financial assets
Inventory 752777729.07 755624486.51
Including: data assets
Contract assets 2615862223.46 2488429802.41
Assets held for sales
Non-current assets due in 1 year 327120273.54
Other current assets 281266692.03 248401322.80
Total current assets 6590021957.02 6389829854.85
Non-current assets:
Loan and advancement provided
Debt investment
2Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Other debt investment
Long-term receivables
Long-term share equity investment 54722057.88 54757017.40
Investment in other equity tools
Other non-current financial assets 6371282.04 7455617.17
Investment real estate 5684258283.56 5756809168.26
in fixed assets 723454635.28 620828178.38
Construction in process 242897579.60 109414347.33
Productive biological assets
Gas & petrol
Use right assets 23987257.81 20776829.58
Intangible assets 136750123.83 140073209.88
Including: data assets
R&D expense
Including: data assets
Goodwill
Long-term amortizable expenses 5074172.96 6749314.04
Deferred income tax assets 189628993.91 182858549.07
Other non-current assets 99449614.04 86799770.90
Total of non-current assets 7166594000.91 6986522002.01
Total of assets 13756615957.93 13376351856.86
Current liabilities
Short-term loans 2428741196.99 2208055039.21
Loans from Central Bank
Call loan received
Transactional financial liabilities
Derivative financial liabilities 628367.00
Notes payable 930323177.19 868886946.79
Account payable 1871295313.20 1972293782.27
Prepayment received 1799054.73 1432885.03
Contract liabilities 217382606.30 198164209.47
Selling of repurchased financial assets
Deposit received and held for others
Entrusted trading of securities
Entrusted selling of securities
Employees' wage payable 33499836.34 74063112.26
Taxes payable 50598844.92 42375068.55
Other payables 117203529.49 117581764.15
Including: interest payable
Dividend payable 6962732.02
Fees and commissions payable
Reinsurance fee payable
3Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Liabilities held for sales
Non-current liabilities due in 1 year 44012088.95 64135136.46
Other current liabilities 47206729.29 53524655.05
Total current liabilities 5742690744.40 5600512599.24
Non-current liabilities:
Insurance contract provision
Long-term loans 880000000.00 660000000.00
Bond payable
Including: preferred stock
Perpetual bond
Lease liabilities 12122587.89 6675870.04
Long-term payable 48400000.00
Long-term employees' wage payable
Anticipated liabilities 4325637.41 4842411.47
Deferred earning 10987372.47 8978678.72
Deferred income tax liabilities 1019250955.77 1012146459.12
Other non-current liabilities
Total of non-current liabilities 1926686553.54 1741043419.35
Total liabilities 7669377297.94 7341556018.59
Owner's equity:
Share capital 1073874227.00 1073874227.00
Other equity tools
Including: preferred stock
Perpetual bond
Capital reserves 11397609.25 11459588.40
Less: Shares in stock
Other miscellaneous income 51714763.85 23121870.79
Special reserves
Surplus reserve 79324940.43 79324940.43
Common risk provisions
Retained profit 4803245119.91 4772359940.45
Total of owner's equity belong to the
6019556660.445960140567.07
parent company
Minor shareholders' equity 67681999.55 74655271.20
Total of owners' equity 6087238659.99 6034795838.27
Total of liabilities and owner's interest 13756615957.93 13376351856.86
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 20165378.71 45926194.32
Transactional financial assets
Derivative financial assets
Notes receivable
4Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Account receivable 1262717.75 683592.53
Receivable financing
Prepayment 3743.53 324209.77
Other receivables 1699175362.68 1684718397.92
Including: interest receivable
Dividend receivable 62142383.24
Inventory
Including: data assets
Contract assets
Assets held for sales
Non-current assets due in 1 year
Other current assets 1853974.86 1849530.81
Total current assets 1722461177.53 1733501925.35
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term share equity investment 1657062530.00 1526831253.00
Investment in other equity tools
Other non-current financial assets 30000001.00 30000001.00
Investment real estate 384737300.00 333236768.00
in fixed assets 47583051.05 63599689.10
Construction in process
Productive biological assets
Gas & petrol
Use right assets 9815568.14 8346277.85
Intangible assets 789827.08 852064.55
Including: data assets
R&D expense
Including: data assets
Goodwill
Long-term amortizable expenses 342110.12 472845.61
Deferred income tax assets
Other non-current assets
Total of non-current assets 2130330387.39 1963338899.11
Total of assets 3852791564.92 3696840824.46
Current liabilities
Short-term loans 300270416.67
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 794548.40 804004.81
5Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Prepayment received 838815.46 736644.20
Contract liabilities
Employees' wage payable 1145268.30 2781026.66
Taxes payable 862779.03 364147.97
Other payables 1492940467.78 1041696906.24
Including: interest payable
Dividend payable
Liabilities held for sales
Non-current liabilities due in 1 year 3465350.33 3936569.69
Other current liabilities 67307.52 41741.14
Total current liabilities 1500114536.82 1350631457.38
Non-current liabilities:
Long-term loans
Bond payable
Including: preferred stock
Perpetual bond
Lease liabilities 6396978.38 5464762.02
Long-term payable
Long-term employees' wage payable
Anticipated liabilities
Deferred earning
Deferred income tax liabilities 45249920.10 37279049.28
Other non-current liabilities
Total of non-current liabilities 51646898.48 42743811.30
Total liabilities 1551761435.30 1393375268.68
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 18309808.71 -10082945.37
Special reserves
Surplus reserve 79324940.43 79324940.43
Retained profit 1129160317.96 1159988498.20
Total of owners' equity 2301030129.62 2303465555.78
Total of liabilities and owner's interest 3852791564.92 3696840824.46
3. Consolidated Income Statement
In RMB
Item H1 2024 H1 2023
1. Total revenue 2133845587.76 2078846877.32
Incl. Business income 2133845587.76 2078846877.32
Interest income
6Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Insurance fee earned
Fee and commission received
2. Total business cost 1985288554.65 1877202076.89
Incl. Business cost 1737599184.98 1624230468.63
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 22159952.79 22503741.56
Sales expense 23558271.96 28143556.79
Administrative expense 84841558.95 79590941.46
R&D cost 85639602.88 88989510.66
Financial expenses 31489983.09 33743857.79
Including: interest cost 29211652.87 48188161.19
Interest income 11466633.99 12097319.82
Add: other gains 11462337.51 8563782.32
Investment gains ("-" for loss) -2082121.20 -2361833.19
Incl. Investment gains from affiliates and joint ventures -34959.52 294.42
Financial assets derecognised as a result of
-1123208.42-2362127.61
amortized cost
Exchange gains ("-" for loss)
Net open hedge gains ("-" for loss)
Gains from change of fair value ("-" for loss) 558364.87 129892.00
Credit impairment ("-" for loss) -7874799.00 20274577.59
Investment impairment loss ("-" for loss) -15876085.85 -14673904.92
Investment gains ("-" for loss) -1490.22 373352.08
3. Operational profit ("-" for loss) 134743239.22 213950666.31
Plus: non-operational income 178760.55 204046.54
Less: non-operational expenditure 535703.48 569862.59
4. Gross profit ("-" for loss) 134386296.29 213584850.26
Less: Income tax expenses 16519019.26 28189905.44
5. Net profit ("-" for net loss) 117867277.03 185394944.82
(1) By operating consistency
1. Net profit from continuous operation ("-" for net loss) 117867277.03 185394944.82
2. Net profit from discontinuous operation ("-" for net loss)
(2) By ownership
1. Net profit attributable to the shareholders of the parent
116795117.62182155268.18
company
2. Gains and losses of minority shareholders (net losses are
1072159.413239676.64
shown in "-")
6. After-tax net amount of other misc. incomes 28588475.40 -10092487.98
After-tax net amount of other misc. incomes attributed to parent's
28592893.06-10103043.90
owner
7Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
(1) Other misc. incomes that cannot be re-classified into gain
-8976730.40
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 -8976730.40
4. Fair value change of the Company's credit risk
5. Others
(2) Other misc. incomes that will be re-classified into gain and
28592893.06-1126313.50
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 -676913.84 -1579210.04
6. Translation difference of foreign exchange statement -320041.06 452896.54
7. Others 29589847.96
After-tax net of other misc. income attributed to minority
-4417.6610555.92
shareholders
7. Total of misc. incomes 146455752.43 175302456.84
Total of misc. incomes attributable to the owners of the parent
145388010.68172052224.28
company
Total misc gains attributable to the minor shareholders 1067741.75 3250232.56
8. Earnings per share:
(1) Basic earnings per share 0.11 0.17
(2) Diluted earnings per share 0.11 0.17
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 2024 H1 2023
1. Turnover 10908179.61 12358317.34
Less: Operation cost 38387.33
Taxes and surcharges 800435.12 659523.84
Sales expense
Administrative expense 14985010.04 14762448.49
R&D cost
Financial expenses 4743454.39 3690612.01
Including: interest cost 4028333.33 3898333.33
Interest income 176948.43 404455.21
Add: other gains 92490.50 78916.83
Investment gains ("-" for loss) 62189550.62
Incl. Investment gains from affiliates and joint
ventures
Financial assets de-recognized as a result of
amortized cost ("-" for loss)
8Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Net open hedge gains ("-" for loss)
Gains from change of fair value ("-" for loss)
Credit impairment ("-" for loss) -87996.70 398974.45
Investment impairment loss ("-" for loss)
Investment gains ("-" for loss) 1053415.23
2. Operational profit ("-" for loss) 53588352.38 -6276375.72
Plus: non-operational income 5025.00 44168.06
Less: non-operational expenditure 5000.00 33194.93
4. Gross profit ("-" for loss) 53588377.38 -6265402.59
Less: Income tax expenses -1493380.54 -1403545.41
4. Net profit ("-" for net loss) 55081757.92 -4861857.18
1. Net profit from continuous operation ("-" for net loss) 55081757.92 -4861857.18
2. Net profit from discontinuous operation ("-" for net
loss)
5. After-tax net amount of other misc. incomes 28392754.08 -8976730.40
(1) Other misc. incomes that cannot be re-classified into
-8976730.40
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
-8976730.40
tools
4. Fair value change of the Company's credit risk
5. Others
(2) Other misc. incomes that will be re-classified into
28392754.08
gain and loss
1. Other comprehensive income that can be
transferred to profit or loss under the equity method
2. Fair value change of other debt investment
3. 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 83474512.00 -13838587.58
7. Earnings per share:
(1) Basic earnings per share
(2) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Item H1 2024 H1 2023
1. Net cash flow from business operations:
Cash received from sales of products and providing of
2015279577.921920455087.38
services
Net increase of customer deposits and capital kept for brother
company
Net increase of loans from central bank
9Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Net increase of inter-bank loans from other financial bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Cash received as interest processing fee and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Net cash received from trading securities
Tax refunded 3542492.79 4515868.70
Other cash received from business operation 43910264.70 43447921.80
Sub-total of cash inflow from business operations 2062732335.41 1968418877.88
Cash paid for purchasing products and services 1575961682.07 1366927959.80
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 265431660.16 238020813.88
Taxes paid 80833799.58 136324121.29
Other cash paid for business activities 312036191.81 264459694.04
Sub-total of cash outflow from business operations 2234263333.62 2005732589.01
Cash flow generated by business operations net -171530998.21 -37313711.13
2. Cash flow generated by investment:
Cash received from investment recovery 985601.68
Cash received as investment profit 101435.57
Net cash retrieved from disposal of fixed assets intangible
266715.0027880.04
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 1353752.25 27880.04
Cash paid for construction of fixed assets intangible assets
167181373.0460206301.90
and 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 168072176.04 60206301.90
Cash flow generated by investment activities net -166718423.79 -60178421.86
3. Cash flow generated by financing activities:
Cash received from investment
Incl. Cash received from investment attracted by subsidiaries
from minority shareholders
Cash received from borrowed loans 2253971200.00 1173858273.98
Other cash received from financing activities 330600944.44
Subtotal of cash inflow from financing activities 2584572144.44 1173858273.98
Cash paid to repay debts 1769800000.00 946000000.00
Cash paid as dividend profit or interests 124740119.51 100394812.98
Incl. Dividend and profit paid by subsidiaries to minority
shareholders
10Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Other cash paid for financing activities 224565671.40 68686816.10
Subtotal of cash outflow from financing activities 2119105790.91 1115081629.08
Net cash flow generated by financing activities 465466353.53 58776644.90
4. Influence of exchange rate changes on cash and cash
1584220.893710265.08
equivalents
5. Net increase in cash and cash equivalents 128801152.42 -35005223.01
Plus: Balance of cash and cash equivalents at the beginning of
779661118.42783677929.06
term
6. Balance of cash and cash equivalents at the end of the period 908462270.84 748672706.05
6. Cash Flow Statement of the Parent Company
In RMB
Item H1 2024 H1 2023
1. Net cash flow from business operations:
Cash received from sales of products and providing of
14751757.549210418.74
services
Tax refunded
Other cash received from business operation 1300660929.18 2268519986.44
Sub-total of cash inflow from business operations 1315412686.72 2277730405.18
Cash paid for purchasing products and services 1426152.31 1697321.13
Cash paid to and for the staff 9514951.33 10382381.77
Taxes paid 760711.10 928005.61
Other cash paid for business activities 808337232.77 2241886586.57
Sub-total of cash outflow from business operations 820039047.51 2254894295.08
Cash flow generated by business operations net 495373639.21 22836110.10
2. Cash flow generated by investment:
Cash received from investment recovery 235323000.00
Cash received as investment profit 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 235370167.38
Cash paid for construction of fixed assets intangible assets
26733.001350.00
and other long-term assets
Cash paid as investment 365554277.00 29500000.00
Net cash paid for acquiring subsidiaries and other operational
units
Other cash paid for investment
Subtotal of cash outflows 365581010.00 29501350.00
Cash flow generated by investment activities net -130210842.62 -29501350.00
3. Cash flow generated by financing activities:
Cash received from investment
Cash received from borrowed loans 300000000.00
Other cash received from financing activities
Subtotal of cash inflow from financing activities 300000000.00
Cash paid to repay debts 300000000.00 300000000.00
Cash paid as dividend profit or interests 90940972.34 57788711.35
Other cash paid for financing activities
Subtotal of cash outflow from financing activities 390940972.34 357788711.35
Net cash flow generated by financing activities -390940972.34 -57788711.35
4. Influence of exchange rate changes on cash and cash
17360.1478018.03
equivalents
5. Net increase in cash and cash equivalents -25760815.61 -64375933.22
11Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Plus: Balance of cash and cash equivalents at the beginning of
45676194.3287460288.64
term
6. Balance of cash and cash equivalents at the end of the period 19915378.71 23084355.42
7. Statement of Change in Owners' Equity (Consolidated)
Amount of the Current Term
In RMB
H1 2024
Owners' Equity Attributable to the Parent Company
Other equity tools Oth
Co Min Tota
Less er or
mm l of
Item Shar Pref Perp Capi : misc Spe Surp Reta sharon own
e erre etua tal Shar ella cial lus ined Oth Subt
ehol
Oth risk ders'
ers'
capi d l rese es in neo rese rese prof ers otal
ers prov equi equital shar bon rves stoc us rves rve it isio ty ty
e d k inco ns
me
107114231793477596746603
1. Balance at
387595218249235014552479
the end of
42288.470.740.499405671.2583
last year
7.000930.457.0708.27
Plus:
Changes in
accounting
policies
Correction of
previous
errors
Others
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
1. Common
shares
invested by
owners
12Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
2. Capital
contributed
by other
equity
instrument
holders
3. Amount of
shares paid
and
accounted as
owners'
equity
4. Others
---
-
859859928
(3) Profit 696
099099726
allotment 273
38.138.170.1
2.02
668
1. Provision
of surplus
reserves
2. Common
risk
provision
---
3.-
859859928
Distribution 696
099099726
to owners (or 273
38.138.170.1
shareholders) 2.02
668
4. Others
(4) Internal
carry-over of
owners'
equity
1.
Capitalizing
of capital
reserves (or
share capital)
2.
Capitalizing
of surplus
reserves (or
share capital)
3. Surplus
reserves used
to cover
losses
4. Retained
gain
transferred
due to
change in set
benefit
13Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
program
5. Other
miscellaneou
s income
6. Others
(5) Special
reserves
1. Provided
this year
2. Used this
period
----
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
Amount of Last Year
In RMB
H1 2023
Owners' Equity Attributable to the Parent Company
Other equity tools Oth Min
Co Tota
Less er or
mm l of
Item Shar Pref Perp Capi : misc Spe Surp Reta sharon own
e eholerre etua tal Shar ella cial lus ined Oth Subt
Oth risk ers' capi d l rese es in neo rese rese prof ers otal
ders'
tal ers
prov equi
shar bon rves stoc us rves rve it
equi
isio ty
e d k inco
ty
ns
me
107114319793455574704582
1. Balance at
387595867249329994442038
the end of
42288.416.740.454008787.3516
last year
7.000932.304.9232.25
Plus:
Changes in
accounting
policies
Correction of
previous
errors
Others
2. Balance at 107 114 319 793 455 574 704 582
the 387 595 867 249 329 994 442 038
beginning of 422 88.4 16.7 40.4 540 087 87.3 516
current year 7.00 0 9 3 2.30 4.92 3 2.25
-
3. Change 128 118 121
101325
amount in 461 358 608
030023
the current 556. 512. 745.
43.92.56
period ("-" 83 93 49
0
14Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
for decrease)
-
182172175
(1) Total of 101 325
155052302
misc. 030 023
268.224.456.
incomes 43.9 2.56
182884
0
(2)
Investment
or decreasing
of capital by
owners
1. Common
shares
invested by
owners
2. Capital
contributed
by other
equity
instrument
holders
3. Amount of
shares paid
and
accounted as
owners'
equity
4. Others
---
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. Others
(4) Internal
carry-over of
owners'
equity
1.
Capitalizing
of capital
reserves (or
share capital)
15Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
2.
Capitalizing
of surplus
reserves (or
share capital)
3. Surplus
reserves used
to cover
losses
4. Retained
gain
transferred
due to
change in set
benefit
program
5. Other
miscellaneou
s income
6. Others
(5) Special
reserves
1. Provided
this year
2. Used this
period
(6) Others
107114218793468586736594
4. Balance at
387595836249175829945199
the end of
42288.472.840.469593819.8390
this period
7.000939.137.8597.74
8. Statement of Change in Owners' Equity (Parent Company)
Amount of the Current Term
In RMB
H1 2024
Other equity tools Other
Total
Capita Less: miscel Specia Surplu
Item Retain of Share Prefer Perpet l Shares laneou l s ed Others owner
capital red ual Others reserv in s reserv reserv profit s'
share bond es stock incom es e 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
Plus:
Changes in
accounting
policies
16Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Correction of
previous
errors
Others
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
1. Common
shares
invested by
owners
2. Capital
contributed
by other
equity
instrument
holders
3. Amount of
shares paid
and
accounted as
owners'
equity
4. Others
--
(3) Profit 8590 8590
allotment 9938. 9938.
1616
1. Provision
of surplus
reserves
2.--
Distribution 8590 8590
to owners (or 9938. 9938.shareholders) 16 16
3. Others
(4) Internal
carry-over of
owners'
17Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
equity
1.
Capitalizing
of capital
reserves (or
share capital)
2.
Capitalizing
of surplus
reserves (or
share capital)
3. Surplus
reserves used
to cover
losses
4. Retained
gain
transferred
due to
change in set
benefit
program
5. Other
miscellaneou
s income
6. Others
(5) Special
reserves
1. Provided
this year
2. Used this
period
(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
Amount of Last Year
In RMB
H1 2023
Other equity tools Other
Total
Capita Less: miscel Specia Surplu
Item Retain of Share Prefer Perpet l Shares laneou l s ed Others owner
capital red ual Others reserv in s reserv reserv profit s'
share bond es stock incom es e equity
e
-
1. Balance at 1073 7932 1225 2377
36081106
the end of 8742 4940. 4490 9028
35.52214.9
last year 27.00 43 92.72 80.70
7
Plus:
Changes in
18Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
accounting
policies
Correction of
previous
errors
Others
2. Balance at -
1073793212252377
the 3608 1106
87424940.44909028
beginning of 35.52 214.9
27.004392.7280.70
current year 7
3. Change
---
amount in
897658556753
the current
730.45568.2298.
period ("-"
05393
for decrease)
---
(1) Total of
897648611383
misc.
730.4857.18587.
incomes
0858
(2)
Investment
or decreasing
of capital by
owners
1. Common
shares
invested by
owners
2. Capital
contributed
by other
equity
instrument
holders
3. Amount of
shares paid
and
accounted as
owners'
equity
4. Others
--
(3) Profit 5369 5369
allotment 3711. 3711.
3535
1. Provision
of surplus
reserves
2.--
Distribution 5369 5369
to owners (or 3711. 3711.shareholders) 35 35
3. Others
19Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
(4) Internal
carry-over of
owners'
equity
1.
Capitalizing
of capital
reserves (or
share capital)
2.
Capitalizing
of surplus
reserves (or
share capital)
3. Surplus
reserves used
to cover
losses
4. Retained
gain
transferred
due to
change in set
benefit
program
5. Other
miscellaneou
s income
6. Others
(5) Special
reserves
1. Provided
this year
2. Used this
period
(6) Others
-
4. Balance at 1073 7932 1166 2310
36081008
the end of 8742 4940. 8935 3705
35.522945.
this period 27.00 43 24.19 81.77
37
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.
20Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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 20116. According to the 2016 profit distribution plan approved by the 2016 general meeting of
shareholders based on the total share capital of 789094836 shares as of December 31 2016 the Company transferred 5 shares
for every 10 shares to all shareholders with the capital reserve. 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 cancelled 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 the Board of
Directors and the Board of Supervisors. 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 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 26 2024.
21Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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 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.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.
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
22Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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
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. Among them
if the accounting policy adopted by the merger party is different from that adopted by the Company before the merger the
accounting policy is unified based on the principle of importance that is the book value of the assets and liabilities of the merger
party is adjusted according to the accounting policy of the Company. 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 X 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. Among them if the accounting policy adopted by the merger party is different from that adopted by the
Company before the merger the accounting policy is unified based on the principle of importance that is the book value of the
23Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
assets and liabilities of the merger party is adjusted according to the accounting policy of the Company. 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 combination not under the same control through step-by-step transactions
see Chapter X V. important accounting policies and accounting 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
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.
24Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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.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
25Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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
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.
26Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
(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.* 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
27Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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
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.
28Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
If the merging party holds the equity investment before acquiring the control of the merged party and is accounted for
according to the equity method the date of acquiring the original equity and the merging party and the merged party are in the
same party's final control from the later date to the merger date The relevant gains and losses other comprehensive income and
other changes in owner's equity have been confirmed between them and the retained earnings at the beginning of the comparative
statement period should be offset 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 of the purchaser held prior to the date of purchase is revalued according
to the fair value of the equity at the date of purchase and the difference between the fair value and its book value is credited to the
current investment income; If the shares held by the purchaser prior to the date of purchase involve other consolidated gains under
the equity law accounting the other consolidated gains related thereto shall be converted to the current gains on the date of
purchase with the exception of the other consolidated gains arising from the remeasurement of the net assets or net liabilities of
the merged party. The Company disclosed in the notes the fair value of the equity of the purchased party held before the purchase
date and the amount of related gains or losses remeasured according to the fair value.
(3) The Company disposes of long-term equity investment in subsidiaries without losing control
The parent company partially disposes of the long-term equity investment in the subsidiary company without losing control.In the consolidated financial statements the disposal price corresponds to the disposal of the long-term equity investment. 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 sum of the consideration obtained from the disposal of equity and the fair value of the remaining equity minus the difference
between the share of the original subsidiary 's net assets that should be continuously calculated from the purchase date or the
merger date calculated as the loss of control The investment income of the current period.
29Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Other comprehensive income and other owner's equity changes related to the equity investment of the atomic company are
transferred to the current profit and loss when the control is lost except for other comprehensive income arising from the
remeasurement of the net benefits or net assets of the defined benefit plan by the investee. .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
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
Proportion of Others ( minority shareholders in factor companies who increase capital dilute Subsidiaries of parent
companies. In the consolidated financial statements the share of the parent company in the net book assets of the former
30Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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.
(2) Methods of conversion of foreign 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. Non-monetary items accounted in foreign currency and on
historical costs are exchanged with the spot exchange rate on the transaction date. Non-monetary items accounted in foreign
currency and on fair value are exchanged with the spot exchange rate on the determination date of the fair value. The exchange
difference between the accounting standard-currency amount and the original accounting standard-currency amount are included
in the current profits and losses.
(3) Translation of foreign exchange statements
Prior to the conversion of the financial statements of an enterprise's overseas operations the accounting period and policy 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:
31Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
* 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.* During the preparation of the consolidated financial statements the resulting foreign currency financial statement
conversion variance is presented separately under the owner's equity item in the consolidated balance sheet.When foreign operations are disposed of and the control rights are lost the difference in foreign currency statements 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 derecognition 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
32Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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
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
33Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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
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
34Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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
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:
a. 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.B. 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
35Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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
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.
36Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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.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
37Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
characteristics and calculates expected credit losses on the basis of the combination. The basis for determining the combination is
as follows:
The basis for determining the combination of notes receivable is as follows:
Notes Receivable Combination 1 Commercial Acceptance Bill
Notes Receivable Combination 2 Bank Acceptance Bill
For Notes receivable divided into portfolios the Company refers to historical credit loss experience combined with 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
38Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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.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
39Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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.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.
40Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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
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 derecognition of related financial
assets. This usually occurs when the Company determines that the debtor has no assets or sources of income that generate
sufficient cash flow to cover the amount that will be written down.
41Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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:
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 ds 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 derecognition 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
42Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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 derecognition;
B. The sum of the amount received as a result of the transfer and the amount accrued as a result of the change in the fair
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;
43Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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
For the method for determining the fair value of financial assets and financial liabilities see 33 (3) in Chapter X V.Important accounting policies and accounting estimates.
11. Notes receivable
See Chapter X V Important Accounting Policies and Accounting Estimates 10. Financial Tools.
12. Account receivable
See Chapter X 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 X V Important Accounting Policies and Accounting Estimates 10. Financial Tools.
14. Other receivables
See Chapter X 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
44Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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 X V. Important accounting policies and accounting estimates.
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.
45Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
(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
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
46Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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
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
47Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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:
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
48Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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.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
49Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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.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 X V. Important accounting policies and accounting estimates.XVIII. Investment real estate
(1) Classification of investment real estate
Investment real estate 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 estate with an active real estate transaction market and the Company can obtain market price and other
information of same or similar real estate to reasonably estimate the investment real estate' fair value the Company will use the
fair value mode to measure the investment real estate 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
estate 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.
50Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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
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 this Chapter X 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
51Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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
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.
52Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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.
(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
can bring economic benefits
Reference to determine the lifetime of a company for which it
Proprietary technology 10
can bring economic benefits
Reference to determine the lifetime of a company for which it
Software 5. 10 years
can bring economic benefits
53Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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
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 limited service life the Company shall determine their service life at the time of acquisition and
shall use the straight line method system to reasonably amortize their service life and the amortization amount shall be included in
the profit and loss of the current period according to the beneficial items. 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;
54Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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;
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.
55Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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.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 an 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 X 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
56Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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
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.
57Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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;
* 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
58Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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
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;
59Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
* 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
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
60Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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
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
61Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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;
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
62Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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.
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.
63Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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
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:
64Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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.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
65Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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;
B. the transaction is not a merger and the transaction does not affect the accounting profit or taxable proceeds;
In the event of temporary discrepancy of deductible investment related to subsidiaries joint ventures and joint ventures 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;
66Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
* 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:
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
67Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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
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 pre-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 pre-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.
(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
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.
68Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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
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:
69Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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 X 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
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.
70Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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
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;
71Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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 leaser
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
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 X V Important accounting policies and accounting estimates.
72Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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 X V Important accounting policies and accountingestimates. If the asset transfer belongs to sales the Company measures the right to use assets formed by sale and 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.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 X 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 divides its hedging strategies into fair value hedges cash flow hedges and net investment 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.* Net investment hedge for overseas operations refers to hedging activities conducted to mitigate the foreign exchange
risk exposure of the net investment in overseas operations. The hedged risk in the net investment hedge is the translation
difference between the functional currency of the overseas operations and the reporting currency of the parent company.
73Interim Financial Statements 2024 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
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.
74Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
* 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.
(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
75Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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 hedging
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
76Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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.* Net investment in overseas operations hedge
For hedging of foreign operation net investments the portion of gains or losses from the hedging instruments that qualify as
effective hedges is directly recognized in other comprehensive income. The portion of gains or losses from the hedging
instruments that do not qualify as effective hedges is recognized in the income statement. Upon disposal of the foreign operation
the previously recognized gains or losses from the hedging instruments reflected in other comprehensive income are reclassified to
the income statement.
(2) Repurchase of the Company's shares
* 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
cancelled 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.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.
77Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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
related asset or liability.
(4) Significant accounting judgment and estimate
78Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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 judgements 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
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.
79Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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
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
80Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
(2) Changes in major accounting estimates
□ Applicable □ Inapplicable
(3) Implementation of new accounting standards adjustment for the first time starting from 2024 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 and 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 Taxable income 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) 15%
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)
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. Ltd. (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) 16.50%
Shenzhen Hongjun Investment Co. Ltd. (hereinafter Fangda Hongjun Investment) 25%
81Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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%
Shenzhen Xunfu Investment Co. Ltd. (hereinafter referred to as Fangda Xunfu
25%
Investment)
Shenzhen Lifu Investment Co. Ltd. (hereinafter referred to as Fangda Lifu
25%
Investment)
Shenzhen Fangda Investment Partnership (Limited Partnership) (hereinafter referred
Inapplicable
to as Fangda Investment)
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%
Fangda Curtain Wall Singapore Co. Ltd. (hereinafter Singapore Curtain Wall) 17%
2. Tax preference
(1) On December 23 2021 the subsidiary Fangda Jianke 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 GR202144200527. Within three years after obtaining the qualification of high-tech
enterprise (from December 2021 to December 2024) the income tax will be levied at 15%.
(2) On December 23 2021 the subsidiary Fangda Zhiyuan Technology Co. Ltd. obtained
the certificate of high 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 GR202144205924. Within three years after
obtaining the qualification of high tech enterprise (from December 2021 to December 2024) the
income tax will be levied at 15%.
(3) On November 3 2021 the subsidiary Fangda Jiangxi New Material Co. Ltd. obtained
the certificate of high tech enterprise jointly issued by Jiangxi Provincial Department of Science
and Technology Jiangxi Provincial Department of Finance State Administration of Taxation and
Jiangxi Provincial Bureau of Taxation. The certificate number is GR202136000174. Within three
82Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
years after obtaining the qualification of high tech enterprise (from November 2021 to November
2024) the income tax will continue to be levied at 15%.
(4) On October 16 2023 our subsidiary Fangda Chengdu Technology Company obtained
the "High-tech Enterprise Certificate" jointly issued by the Science and Technology Department
of Sichuan Province the Finance Department of Sichuan Province and the State Taxation Bureau
of Sichuan Province. The certificate number is GR202351000927. For the next three years (from
October 2023 to October 2026) following the qualification as a high-tech enterprise the income
tax will continue to be levied at a rate of 15%.
(5) 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) and the income tax is levied at 15% from January 1
2021 to December 31 2021.
(9) On November 15 2023 the subsidiary Fangda Shanghai Zhijian obtained the certificate
GR202331002267 of high tech enterprise jointly issued by Shanghai Science and Technology
Commission Shanghai Finance Bureau and Shanghai Taxation Bureau. Within three years (from
November 2023 to November 2026) after obtaining the qualification of high tech enterprise the
income tax will continue to be charged at 15%.
(7) On December 11 2021 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 November 2023 to November 2026) the income tax
will be levied at 15%.
(8) According to the "Announcement on Continuing the Enterprise Income Tax Policy for
the Western Development" jointly issued by the Ministry of Finance the State Taxation
Administration and the National Development and Reform Commission ([2020] No. 23) from
January 1 2021 to December 31 2030 for eligible encouraged industrial enterprises located in
83Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
the western region the enterprise income tax will be levied at a reduced rate of 15%. The
enterprise income tax policy of Ganzhou City Jiangxi Province is implemented by referring to
that of the western region. The subsidiary Fangda Intelligent Manufacturing belongs to an
encouraged industrial enterprise established in Ganzhou City and is applicable to the preferential
tax rate of 15%.
(9) According to the Announcement of the Ministry of Finance and the State Administration
of Taxation on Further Implementing Income Tax Preferential Policies for Small and Micro
Enterprises (Announcement No. 13 of 2022) and the Announcement of the Ministry of Finance
and the State Administration of Taxation on Income Tax Preferential Policies for Small and Micro
Enterprises and Individual Industrial and Commercial Households (Announcement No. 6 of 2023)
some companies belong to small and micro profit enterprises in 2024 Their income shall be
subject to corporate income tax in accordance with the provisions of the aforementioned
documents.VII. Notes to the consolidated financial statements
1. Monetary capital
In RMB
Item Closing balance Opening balance
Inventory cash: 28569.08 752.40
Bank deposits 910364188.39 787363734.05
Other monetary capital 774613920.12 637786629.79
Total 1685006677.59 1425151116.24
Including: total amount deposited in
54843904.1645201676.97
overseas
(1) Among the ending balance of bank deposits RMB16281762.80 of restricted funds are mainly the deposits of the labor
insurance special account and the peasant workers' wage special account; among the ending balance of other monetary funds
RMB760262643.95 of restricted funds are mainly the deposit for bank draft guarantee guarantee deposit for letter of guarantee
etc. 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) In addition there are no other funds in the monetary funds at the end of the period that have restrictions on use and potential
recovery risks due to mortgages pledges or freezing.
84Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
2. Derivative financial assets
In RMB
Item Closing balance Opening balance
Forward foreign exchange contract 173737.06
Total 173737.06
3. Notes receivable
(1) Classification of notes receivable
In RMB
Item Closing balance Opening balance
Bank acceptance 23120212.57 21487899.17
Commercial acceptance 12625505.07 25884982.10
Total 35745717.64 47372881.27
(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
358864140748.357457477783405473.473728
provisio 100.00% 0.39% 100.00% 0.85%
66.215717.6454.936681.27
n for bad
debts by
portfolio
Includin
g:
Commer
cial 127662 140748. 126255 262904 405473. 258849
35.57%1.10%55.03%1.54%
acceptan 53.64 57 05.07 55.76 66 82.10
ce
Bank
231202231202214878214878
acceptan 64.43% 44.97%
12.5712.5799.1799.17
ce
358864140748.357457477783405473.473728
Total 100.00% 0.39% 100.00% 0.85%
66.215717.6454.936681.27
Category name for bad debt provision by combination: commercial acceptance bill
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Commercial acceptance 12766253.64 140748.57 1.10%
85Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Total 12766253.64 140748.57
Group recognition basis:
See 10. Financial Tools in Chapter X 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 combination: commercial acceptance
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Bank acceptance 23120212.57 0.00 0.00%
Total 23120212.57 0.00
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
Opening
Type Written-back or Closing balance balance Provision Canceled Others
recovered
Commercial
405473.66-264725.09140748.57
acceptance
Total 405473.66 -264725.09 140748.57
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
Bank acceptance 13762837.86
Commercial acceptance 7400000.00
Total 21162837.86
4. Account receivable
(1) Account age
In RMB
Age Closing balance of book value Opening balance of book value
Within 1 year (inclusive) 538042036.66 480886398.43
1-2 years 206145753.93 202348687.37
86Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
2-3 years 131541359.44 158881321.32
Over 3 years 420378866.26 335427049.97
3-4 years 128856475.72 134723171.92
4-5 years 71173297.55 50830831.78
Over 5 years 220349092.99 149873046.27
Total 1296108016.29 1177543457.09
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
Balance of provision for bad Whether there is a
Customer receivable of over 3 years Reason of the age
debts (RMB) risk of recovery
(RMB)
Customer 1 Customer credit status Yes
84240997.92 30548361.04 deteriorates
Customer 2 Customer credit status Yes
54873223.21 54873223.21 deteriorates
Customer 3 Customer credit status Yes
28415073.84 28415073.84 deteriorates
Customer 4 Customer credit status Yes
26737669.61 13195726.65 deteriorates
Customer 5 Customer credit status Yes
17374148.42 17374148.42 deteriorates
(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
804303743826604764804303743826604764
bad debt 6.21% 92.48% 6.83% 92.48%
39.2798.730.5439.2798.730.54
provisio
n is
made by
group
Includin
g:
Custome 548732 548732 548732 548732
4.23%100.00%0.004.67%100.00%0.00
r 1 23.21 23.21 23.21 23.21
Custome 134618 134618 134618 134618
1.04%100.00%0.001.14%100.00%0.00
r 2 34.96 34.96 34.96 34.96
Custome 709642 354821 354821 709642 354821 354821
0.55%50.00%0.60%50.00%
r 3 1.00 0.50 0.50 1.00 0.50 0.50
Custome 499886 249943 249943 499886 249943 249943
0.39%50.00%0.42%50.00%
r 4 0.10 0.06 0.04 0.10 0.06 0.04
Account 121567 93.79% 199026 16.37% 101665 109711 93.17% 191673 17.47% 905439
87Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
receivab 7677.02 334.87 1342.15 3117.82 844.17 273.65
le for
which
bad debt
provisio
n is
made by
group
Includin
g:
Portfolio
1:
Engineer
990710188170802540881971181121700850
ing 76.44% 18.99% 74.90% 20.54%
144.67141.80002.87973.34184.71788.63
operatio
ns
section
Portfolio
2: Real
estate 141312 795041 133362 144374 829356 136081
10.90%5.63%12.26%5.74%
business 996.69 2.66 584.03 822.98 6.86 256.12
payment
s
Portfolio
3: Other 836545 290578 807487 707663 225909 685072
6.45%3.47%6.01%3.19%
business 35.66 0.41 55.25 21.50 2.60 28.90
models
129610273409102269117754266056911486
Total 100.00% 21.09% 100.00% 22.59%
8016.29033.608982.693457.09542.90914.19
Category name for bad debt provision by individual: customer
In RMB
Opening balance Closing balance
Name Remaining book Remaining book Provision
Bad debt provision Bad debt provision Reason
value value rate
Customer
Customer
54873223.21 54873223.21 54873223.21 54873223.21 100.00% credit status
deteriorates
Customer
Customer
13461834.96 13461834.96 13461834.96 13461834.96 100.00% credit status
deteriorates
Customer
Customer
7096421.00 3548210.50 7096421.00 3548210.50 50.00% credit status
deteriorates
Customer
Customer
4998860.10 2499430.06 4998860.10 2499430.06 50.00% credit status
deteriorates
Total 80430339.27 74382698.73 80430339.27 74382698.73
Category name for bad debt provision by combination: combination 1: engineering business payments
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 410147721.97 8038895.37 1.96%
88Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
1-2 years 156913107.59 8881281.90 5.66%
2-3 years 128038088.80 16337660.87 12.76%
3-4 years 125154409.76 24730511.37 19.76%
4-5 years 70856833.66 30581809.40 43.16%
Over 5 years 99599982.89 99599982.89 100.00%
Total 990710144.67 188170141.80
Group recognition basis:
See 10. Financial Tools in Chapter X V Important Accounting Policies and Accounting Estimates for the recognition criteria and
instructions for withdrawing bad debt reserves by portfolio
Category name for bad debt provision by combination: combination 2: real estate business payments
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 78334238.26 783342.40 1.00%
1-2 years 22791467.48 1139573.37 5.00%
2-3 years 5967.48 298.38 5.00%
3-4 years 53645.28 8046.79 15.00%
4-5 years
Over 5 years 40127678.19 6019151.72 15.00%
Total 141312996.69 7950412.66
Category name for bad debt provision by combination: combination 3: other business payments.In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 49560076.43 361788.56 0.73%
1-2 years 26441178.86 555264.76 2.10%
2-3 years 3497303.16 294472.93 8.42%
3-4 years 3215774.37 796868.88 24.78%
4-5 years 316463.89 273646.33 86.47%
Over 5 years 623738.95 623738.95 100.00%
Total 83654535.66 2905780.41
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 74382698.73 74382698.73
89Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Provision for bad debts by
191673844.177352490.70199026334.87
combination
Total 266056542.90 7352490.70 273409033.60
(4) 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
ending balance of
Closing balance of Closing balance of accounts debts on accounts
Entity accounts
accounts receivable contract assets receivable and receivable and
receivable and
contract assets impairment of
contract assets
contract assets
No.1 113529244.60 9903379.39 123432623.99 2.95% 38677733.03
No.2 22323291.93 68916683.63 91239975.56 2.18% 1788303.51
No.3 3666410.41 78035049.65 81701460.06 1.95% 1601348.62
No.4 21396066.95 59077533.44 80473600.39 1.92% 2842446.62
No.5 12549200.00 63839194.54 76388394.54 1.83% 2876197.40
Total 173464213.89 279771840.65 453236054.54 10.83% 47786029.18
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 2687858269. 2501562253. 2536843592. 2357777551.
186296016.55179066040.85
that fail to meet 95 40 06 21
the collection
conditions
Quality
guarantee
deposit that
132592961.9821761252.78110831709.20157921009.2813409302.47144511706.81
fails to meet the
collection
conditions
Sales funds
with
64321843.25731669.9063590173.3551338008.75436594.7850901413.97
conditional
collection right
Less: Contract
assets shown in
65754345.905632433.4160121912.4969887873.015127003.4364760869.58
other non-
current assets
2819018729.2615862223.2676214737.2488429802.
Total 203156505.82 187784934.67
28460841
90Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
(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 with conditional collection rights arising from the
143784702.19
to meet the collection conditions revenue recognized in the project contract during
the reporting period
Mainly attributable to the decrease in warranty
Quality guarantee deposit that fails to meet the
-33679997.61 deposits for which collection conditions have not
collection conditions
been met
Total 110104704.58 ——
(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
Separate
bad debt 162885 903324 725532 162885 903324 725532
0.58%55.46%0.61%55.46%
provisio 76.53 7.20 9.33 76.53 7.20 9.33
n
Including:
Custome 145106 725532 725532 145106 725532 725532
0.52%50.00%0.54%50.00%
r 1 58.66 9.33 9.33 58.66 9.33 9.33
Custome 177791 177791 177791 177791
0.06%100.00%0.07%100.00%
r 2 7.87 7.87 7.87 7.87
Provisio
n for bad
280273194123260860265992178751248117
debts by 99.42% 6.93% 99.39% 6.72%
0152.75258.626894.136160.55687.474473.08
combina
tion
Including:
Sales
funds
with
643218731669.635901513380436594.509014
conditio 2.28% 1.14% 1.92% 0.85%
43.259073.3508.757813.97
nal
collectio
n right
Complet
ed and
unsettled
project
267156177262249430251964169724234991
funds 94.77% 6.64% 94.15% 6.74%
9693.42769.356924.073302.99313.358989.64
that fail
to meet
the
collectio
91Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
n
conditio
ns
Quality
guarante
e deposit
that fails
to meet 668386 161288 110831 889448 859077 803540
2.37%24.13%3.32%9.66%
the 16.09 19.37 709.20 48.81 9.34 69.47
collectio
n
conditio
ns
281901203156261586267621187784248842
Total 100.00% 7.21% 100.00% 7.02%
8729.28505.822223.464737.08934.679802.41
Category name for bad debt provision by individual: customer
In RMB
Opening balance Closing balance
Name Remaining Bad debt Remaining Bad debt
Provision rate Reason
book value provision book value provision
Customer credit
Customer 1 14510658.66 7255329.33 14510658.66 7255329.33 50.00% status
deteriorates
Customer credit
Customer 2 1777917.87 1777917.87 1777917.87 1777917.87 100.00% status
deteriorates
Total 16288576.53 9033247.20 16288576.53 9033247.20
Category name for bad debt provision by combination: combination 1: conditional receivable sales payments.In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Combination 1: sales payment
with conditional collection 64321843.25 731669.90 1.14%
right
Total 64321843.25 731669.90
Group recognition basis:
See 10. Financial Tools in Chapter X V Important Accounting Policies and Accounting Estimates for the recognition criteria and
instructions for withdrawing bad debt reserves by portfolio
Category name for bad debt provision by combination: combination 2: Completed and unsettled project funds that fail to meet the
collection conditions
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Portfolio 2: Completed and
unsettled project funds that
2671569693.42177262769.356.64%
fail to meet the collection
conditions
Total 2671569693.42 177262769.35
Category name for bad debt provision by combination: combination 3: warranty deposits that have not met the collection
92Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
conditions
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Portfolio 3: Quality guarantee
deposit not meeting collection 66838616.09 16128819.37 24.13%
conditions
Total 66838616.09 16128819.37
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 provision
Provision for bad debts by
15370105.21
combination
Total 15370105.21
6. Receivable financing
(1) Presentation of receivables financing classification
In RMB
Item Closing balance Opening balance
Notes receivable 4668854.47 6979428.14
Total 4668854.47 6979428.14
(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
466885466885697942697942
debts by 100.00% 0.00 0.00% 100.00% 0.00 0.00%
4.474.478.148.14
combina
tion
Including:
Bank
466885466885697942697942
acceptan 100.00% 0.00 0.00% 100.00% 0.00 0.00%
4.474.478.148.14
ce
93Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
466885466885697942697942
Total 100.00% 0.00 0.00% 100.00% 0.00 0.00%
4.474.478.148.14
Provision for bad debts by combination: commercial acceptance
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Bank acceptance 4668854.47 0.00 0.00%
Total 4668854.47 0.00
Group recognition basis:
See 10. Financial Tools in Chapter X V Important Accounting Policies and Accounting Estimates for the recognition criteria and
instructions for withdrawing bad debt reserves by portfolio
7. Other receivables
In RMB
Item Closing balance Opening balance
Other receivables 151311534.99 145113323.33
Total 151311534.99 145113323.33
(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 97601305.37 96041429.79
Construction borrowing and advanced
38430117.4541180355.37
payment
Staff borrowing and petty cash 3512780.85 2515436.58
VAT refund receivable 5274354.49 798918.77
Others 14671948.26 11974398.52
Total 159490506.42 152510539.03
(2) Account age
In RMB
Age Closing balance of book value Opening balance of book value
Within 1 year (inclusive) 26881138.43 30123678.94
1-2 years 7113971.42 4793018.03
2-3 years 3835355.43 5310261.72
Over 3 years 121660041.14 112283580.34
3-4 years 3940181.05 9787862.62
4-5 years 2561827.97 7701603.22
Over 5 years 115158032.12 94794114.50
Total 159490506.42 152510539.03
The Company needs to comply with the disclosure requirements of the decoration and decoration industry in the Guidelines for the
94Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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
Balance of other receivables Balance of provision for bad Whether there is a
Customer Reason of the age
older than three years (RMB) debts (RMB) risk of recovery
Customer 1 1970381.89 1970381.89 Customer credit status Yes
deteriorates
(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
159490817897151311152510739721145113
debts by 100.00% 5.13% 100.00% 4.85%
506.421.43534.99539.035.70323.33
combina
tion
Including:
Portfolio
150589224330148345143789214350141645
1: First 94.42% 1.49% 94.28% 1.49%
231.753.28928.47155.166.61648.55
stage
Portfolio
2:30573291719.8296560357488107207.346767
1.92%3.00%2.34%3.00%
Second 6.32 0 6.52 2.60 82 4.78
stage
Portfolio
584394584394514650514650
3: Third 3.66% 100.00% 0.00 3.38% 100.00% 0.00
8.358.351.271.27
stage
159490817897151311152510739721145113
Total 100.00% 5.13% 100.00% 4.85%
506.421.43534.99539.035.70323.33
Category name for bad debt provision by combination: combination 1: First stage
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Portfolio 1: First stage 150589231.75 2243303.28 1.49%
Total 150589231.75 2243303.28
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.Category name for bad debt provision by combination: combination 2: Second stage
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Portfolio 2: Second stage 3057326.32 91719.80 3.00%
Total 3057326.32 91719.80
95Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Category name for bad debt provision by combination: combination 3: Third stage
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Portfolio 3: Third stage 5843948.35 5843948.35 100.00%
Total 5843948.35 5843948.35
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 12 the entire duration (no entire duration (credit
months credit impairment) impairment has occurred)
Balance on January 1
2143506.61107207.825146501.277397215.70
2024
Balance on January 1
2024 in the current period
Provision 99914.43 -15488.02 697447.08 781873.49
Other change -117.76 -117.76
Balance on June 30 2024 2243303.28 91719.80 5843948.35 8178971.43
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
7397215.70781873.49-117.768178971.43
by combination
Total 7397215.70 781873.49 -117.76 8178971.43
5) Balance of top 5 other receivables at the end of the period
In RMB
Balance of bad
debt provision at
Entity By nature Closing balance Age Percentage (%)
the end of the
period
6000000.00 1-2 years
Shenzhen Yikang Margin and current 62675.83 3-4 years
47.69%1133333.87
Real Estate Co. Ltd. account 2000000.00 4-5 years
68000000.00 Over 5 years
Bangshen Electronics
Deposit 20000000.00 Over 5 years 12.54% 298000.00
(Shenzhen) Co. Ltd.
96Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Shenzhen Dakang
Deposit 8000000.00 Over 5 years 5.02% 119200.00
Co. Ltd.Ganshang Joint
Others 3791089.25 Over 5 years 2.38% 56487.23
Investment
Xin Song Others 1970381.89 Over 5 years 1.24% 1970381.89
Total 109824146.97 68.87% 3577402.99
8. Prepayment
(1) Account ages of prepayments
In RMB
Closing balance Opening balance
Age
Amount Proportion Amount Proportion
Less than 1 year 31968676.69 78.58% 29398144.01 86.53%
1-2 years 2766458.69 6.80% 1713380.35 5.04%
2-3 years 1422909.99 3.50% 648638.59 1.91%
Over 3 years 4525499.71 11.12% 2216406.41 6.52%
Total 40683545.08 33976569.36
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 RMB13164657.14
accounting for 32.36% 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.No
(1) Classification of inventories
In RMB
Closing balance Opening balance
Provision Provision
for for
inventory inventory
depreciati depreciati
Item on or on or Remaining book Remaining book
contract Book value contract Book value
value value
performan performan
ce cost ce cost
impairme impairme
nt nt
provision provision
Raw materials 139497627.54 139497627.54 131800215.01 131800215.01
Product in 90803158.18 90803158.18 120647582.06 120647582.06
97Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
process
Finished goods
12594988.5912594988.5911240201.5711240201.57
in stock
Contract
performance 114564484.57 114564484.57 90470830.76 90470830.76
costs
Goods
17930849.8117930849.8123270292.1723270292.17
delivered
Development
227990392.09227990392.09224969147.17224969147.17
cost
Development
127826621.64127826621.64134821091.47134821091.47
products
Low price
209033.64209033.64171286.80171286.80
consumable
OEM materials 19410229.21 19410229.21 15096929.98 15096929.98
Materials in
1950343.801950343.803136909.523136909.52
transit
Total 752777729.07 752777729.07 755624486.51 755624486.51
(2) Balance at the end of the period includes capitalization of borrowing expense
As at June 30 2024 the amount of the capitalization of borrowing costs in the balance of the end-of-period
inventory was RMB5005567.86.
(3) Explanation of the current amortization amount of contract performance cost
The current amortization amount of contract performance costs is included in operating costs.
10. Non-current assets due in 1 year
In RMB
Item Closing balance Opening balance
Large-scale time deposit principal and
327120273.54
interest
Total 327120273.54
11. Other current assets
In RMB
Item Closing balance Opening balance
Reclassification of VAT debit balance 270013064.65 230260579.29
Overpayment and prepayment of income
6758701.472852830.41
tax
Other prepaid taxes 1491084.02 3836971.59
Payment to be collected on behalf of
3003841.893003841.89
suppliers
Pending development products 8447099.62
Total 281266692.03 248401322.80
98Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
12. Long-term share equity investment
In RMB
Change (+-)
Invest
Beginn ment
Balanc
gain e of ing Other impair
Openi balanc and Cash
Investe miscellIncreas Decrea loss divide Impair Closin ment ng e of
d aneous Other
book impair ed sed recogn nd or ment
g book provisi
entity incom equity Others
value ment invest invest ized profit provisi
value on at
e change
provisi ment ment using annou on
the end
adjust
the nced of the ons ment
equity period
metho
d
Associate
Gansh
ang
24022402
Joint 450.08
065.72515.80
Invest
ment
Jiangxi
Busine
ss
Innova
tive 52354 - 52319
Proper 951.6 35409 542.0
ty 8 .60 8
Joint
Stock
Co.Ltd.
54757-54722
Total 017.4 34959 057.8
0.528
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
13. Other non-current financial assets
In RMB
Item Closing balance Opening balance
Financial assets measured at fair value
with variations accounted into current 6371282.04 7455617.17
income account
Total 6371282.04 7455617.17
99Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
14. Investment real estate
(1) Investment real estate measured at costs
□ Applicable □ Inapplicable
In RMB
Item Houses & buildings Total
I. Book value
1. Opening balance 17388824.39 17388824.39
2. Increase in this period
3. Decrease in this period
4. Closing balance 17388824.39 17388824.39
II. Accumulative depreciation and
amortization
1. Opening balance 8151827.44 8151827.44
2. Increase in this period 224704.02 224704.02
(1) Provision or amortization 224704.02 224704.02
3. Decrease in this period
4. Closing balance 8376531.46 8376531.46
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 9012292.93 9012292.93
2. Opening book value 9236996.95 9236996.95
(2) Investment real estate measured at fair value
□ Applicable □ Inapplicable
In RMB
Item Houses & buildings Total
I. Opening balance 5747572171.31 5747572171.31
II. Change in this period -72326180.68 -72326180.68
Add: Transfer-in from inventory\fixed
84275738.0084275738.00
assets\construction in progress
Less: disposal 3189499.43 3189499.43
Transfer-out to fixed assets 153968082.00 153968082.00
Add: Change in fair value 555662.75 555662.75
III. Closing balance 5675245990.63 5675245990.63
100Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
(3) Conversion to investment real estate and measurement using fair value
In RMB
Impact on other
Pre-conversion Approval Impact on profit
Item Amount Conversion reason comprehensive
accounting procedure and loss
income
Part of the Approved in
property of accordance with
Inventory for sale
Building 2 Inventory 8237822.00 the Company's 0.00 1197093.88
transferred to lease
Nanchang Fangda management
Center system.Approved in
accordance with
Part of Fangda
in fixed assets 76037916.00 Self-use to lease the Company's 0.00 28392754.08
Building
management
system.Total 84275738.00
(4) Investment real estate without ownership certificate
In RMB
Item Book value Reason
Lanzhou Railway - City In the process of going through the relevant acceptance
13037841.00
Dawn and filing procedures.
15. Fixed assets
In RMB
Item Closing balance Opening balance
in fixed assets 723454635.28 620828178.38
Total 723454635.28 620828178.38
(1) Fixed assets
In RMB
Houses & Mechanical Transportation Electronics and PV power
Item Total
buildings equipment facilities other devices plants
I. Original book
value:
1. Opening
604581780.49133179843.0220556336.6052612038.36129596434.84940526433.31
balance
2. Increase in
153968082.00800536.1891503.55928720.14155788841.87
this period
(1) Purchase 800536.18 89133.29 928176.85 1817846.32
(2) Other
153968082.002370.26543.29153970995.55
increases
3. Decrease in
47282629.09417001.1247699630.21
this period
(1) Disposal or 417001.12 417001.12
101Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
retirement
(2) Other
47282629.0947282629.09
decrease
4. Closing 1048615644.
711267233.40133980379.2020647840.1553123757.38129596434.84
balance 97
II.Accumulative
depreciation
1. Opening
127270899.0695754806.5215333003.2634440400.1346802676.46319601785.43
balance
2. Increase in
8048837.122003784.68529978.661281937.873074220.0614938758.39
this period
(1) Provision 8048837.12 2003784.68 528389.85 1261845.64 3074220.06 14917077.35
3. Decrease in
9101718.53374285.109476003.63
this period
(1) Disposal or
374285.10374285.10
retirement
(2) Other
9101718.539101718.53
decrease
4. Closing
126218017.6597758591.2015862981.9235348052.9049876896.52325064540.19
balance
III. Impairment
provision
1. Opening
79843.2016626.3096469.50
balance
2. Increase in
this period
3. Decrease in
this period
4. Closing
79843.2016626.3096469.50
balance
IV. Book value
1. Closing book
585049215.7536141944.804784858.2317759078.1879719538.32723454635.28
value
2. Opening
477310881.4337345193.305223333.3418155011.9382793758.38620828178.38
book value
(2) Fixed assets without ownership certificate
In RMB
Item Book value Reason
Yuehai Office Building C 502 103313.13 Historical reasons
Others:
a. As of June 30 2024 the net value of some of the houses and buildings held by the Company
amounting to RMB141500759.61 has been mortgaged to China Construction Bank Shenzhen Overseas
Chinese Town Branch for loans.
102Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
b. In this period's changes there was an increase of RMB153968082.00 in other items of houses and
buildings and a decrease of RMB47282629.09 which was caused by the conversion with investment real
estate.
16. Construction in process
In RMB
Item Closing balance Opening balance
Construction in process 242897579.60 109414347.33
Total 242897579.60 109414347.33
(1) Construction in progress
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
Phase 1 of
Ganzhou
Intelligent
242897579.60242897579.60109181428.63109181428.63
Manufacturing
Headquarters
Base
Fangda
Building
monitoring 232918.70 232918.70
system
remodeling
Total 242897579.60 242897579.60 109414347.33 109414347.33
(2) Changes in major construction in process in this period
In RMB
Propor
Includi
Amou tion of
ng:
nt accum Accum
Other capital Interes
Openi Increas transfe Closin ulative ulative
decrea Project ized t
Project ng e in r-in to g engine capital Capital
Budget se in progre interes capital
name balanc this fixed balanc ering ized source
this ss t for ization
e period assets e invest interes
period the rate
in this ment t
current
period in the
period
budget
Phase Own
1 of Constr funds
Ganzh 33154 10918 13371 24289 uction and
73.2623102310100.00
ou 0000. 1428. 6150. 7579. in loans
%000.00000.00%
Intellig 00 63 97 60 proces from
ent s financi
Manuf al
103Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
acturin institut
g ions
Headq
uarters
Base
33154109181337124289
23102310100.00
Total 0000. 1428. 6150. 7579.
000.00000.00%
00639760
(3) Provision for impairment of construction in progress during the current period
As of June 30 2024 there was no indication of impairment for construction in progress.
(4) Impairment testing of construction in progress
□ Applicable □ Inapplicable
17. Use right assets
(1) Right-to-use assets
In RMB
Item Houses & buildings Transportation facilities Total
I. Book value
1. Opening balance 39794489.03 1959448.83 41753937.86
2. Increase in this period 7466771.47 3651740.16 11118511.63
3. Decrease in this period
4. Closing balance 47261260.50 5611188.99 52872449.49
II. Accumulative depreciation
1. Opening balance 19803178.07 1173930.21 20977108.28
2. Increase in this period 7571066.03 337017.36 7908083.39
(1) Provision 7571066.03 337017.36 7908083.39
3. Decrease in this period
4. Closing balance 27374244.10 1510947.57 28885191.67
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 19887016.40 4100241.42 23987257.81
2. Opening book value 19991310.96 785518.62 20776829.58
(2) Impairment testing of right-of-use assets
□ Applicable □ Inapplicable
104Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
As of June 30 2024 there are no signs of impairment in the right-of-use assets of the Company.
18. Intangible assets
(1) Intangible assets
In RMB
Trademarks patents
Item Land using right Software Total
and know-how
I. Book value
1. Opening balance 152914836.88 9017372.69 23236225.88 185168435.45
2. Increase in this
41149.68324388.19365537.87
period
(1) Purchase 41149.68 324388.19 365537.87
3. Decrease in this
period
4. Closing balance 152914836.88 9058522.37 23560614.07 185533973.32
II. Accumulative
amortization
1. Opening balance 23080721.81 8919025.53 13095478.23 45095225.57
2. Increase in this
2661285.4614882.161012456.303688623.92
period
(1) Provision 2661285.46 14882.16 1011540.76 3687708.38
3. Decrease in this
period
4. Closing balance 25742007.27 8933907.69 14107934.53 48783849.49
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 127172829.61 124614.68 9452679.54 136750123.83
2. Opening book value 129834115.07 98347.16 10140747.65 140073209.88
(2) Failure to obtain the land use right certificates
In RMB
At the end of the period the Company had no land use right without the property right certificate.
(3) Impairment test of intangible assets
□ Applicable □ Inapplicable
105Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
19. Long-term amortizable expenses
In RMB
Amortized
Opening Increase in Other
Item amount in this Closing balance
balance this period decrease
period
Xuanfeng Chayuan village and
Zhuyuan village land transfer 916323.98 28050.78 888273.20
compensation
Membership fee 514999.92 167833.34 347166.58
Plant ground reconstruction project 145269.71 43581.00 101688.71
High voltage network access fee of
179459.59153822.6625636.93
East China base
Sporadic decoration and renovation
3015993.78936879.282079114.50
costs of Fangda Town
Sporadic decoration and renovation
684013.47194381.64489631.83
costs of Fangda Center
Renovation of the exhibition hall
on the 2nd floor of the East China 310724.95 34525.00 276199.95
Base
Others 1293253.59 426189.74 602.59 866461.26
Total 6749314.04 310724.95 1985263.44 602.59 5074172.96
20. 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
318885422.6859216319.69301423517.6156628793.35
provision
Unrealized profit of
429990392.8488425089.98393622330.4182987001.02
internal transactions
Deductible loss 138889234.90 32973293.23 130536168.91 31566961.10
Credit impairment
285793380.4443985563.69273785349.4042172039.47
provision
Anticipated liabilities 4216060.76 632409.11 4842411.47 726361.72
Deferred earning 3775568.10 719053.28 3922402.14 744121.83
Change in fair value 9277014.48 1399219.85 9127633.52 1369145.03
Lease liabilities 9511018.88 2457322.18 20573028.70 4335420.74
Accrued and unpaid
16543205.264135801.3116543205.264135801.32
land tax
Reserved expense 9427003.06 2801828.70 36216407.02 5434461.06
Total 1226308301.40 236745901.02 1190592454.44 230100106.64
(2) Non-deducted deferred income tax liabilities
In RMB
Item Closing balance Opening balance
106Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
Change in fair value 4200176971.36 1050044242.85 4161500052.20 1040357639.32
Acquire premium to
1535605.47383901.371535605.47383901.37
form inventory
Use right assets 10355437.60 2588859.40 20776829.58 4110042.13
Estimated gross profit
for recognized revenue
27833078.256958269.5629608338.877402084.72
that has not reached the
tax liability point.Rental income 25570358.86 6392589.70 28537396.58 7134349.15
Total 4265471451.54 1066367862.88 4241958222.70 1059388016.69
(3) Net deferred income tax assets or liabilities listed
In RMB
Offset balance of Deferred income tax Offset balance of
Deferred income tax
deferred income tax assets and liabilities at deferred income tax
Item assets and liabilities at
assets or liabilities after the beginning of the assets or liabilities after
the end of the period
offsetting period offsetting
Deferred income tax
47116907.11189628993.9147241557.57182858549.07
assets
Deferred income tax
47116907.111019250955.7747241557.571012146459.12
liabilities
(4) Details of unrecognized deferred income tax assets
In RMB
Item Closing balance Opening balance
Deductible temporary difference 215559.63 462778.59
Deductible loss 12375300.84 17530215.40
Total 12590860.47 17992993.99
(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
2024851893.171276235.76
2025873293.27213129.83
20261654924.972355213.17
20271234520.343698098.44
2028139385.949987538.20
The deductible losses are mainly from Hong
Kong companies and according to Hong Kong
2029 and later 7621283.15
tax policy the deductible losses can be used in
perpetuity.Total 12375300.84 17530215.40
107Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
21. 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 65754345.90 5632433.41 60121912.49 69887873.01 5127003.43 64760869.58
Prepaid house
and equipment 37323701.55 37323701.55 20034901.32 20034901.32
amount
Others 2004000.00 2004000.00 2004000.00 2004000.00
Total 105082047.45 5632433.41 99449614.04 91926774.33 5127003.43 86799770.90
22. 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 77654440 77654440 or Various 64548999 64548999 or Various
capital 6.75 6.75 restricted deposits 7.82 7.82 restricted deposits
use use
Bills Bills
For For
endorsed or endorsed or
Notes 21162837. 21096517. endorseme 27937899. 27843496. endorseme
discounted discounted
receivable 86 86 nt or 17 17 nt or
but not yet but not yet
discounting discounting
due due
Account 35195428. 34843474. Loan by 39392140. 38094032. Loan by
For pledge For pledge
receivable 88 59 pledge 71 45 pledge
in fixed 14593458 14150075 Used as Loan by 45915995. 43108073. Used as Loan by
assets 2.39 9.61 collateral pledge 84 24 collateral pledge
Investment 18272997 18272997 Used as Loan by 19432870 19432870 Used as Loan by
real estate 18.88 18.88 collateral pledge 98.56 98.56 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
Constructio
22807746 22807746 Used as Loan by
n in
8.49 8.49 collateral pledge
process
Intangible 24179649. 23454260. Used as Loan by
assets 75 19 collateral pledge
Non-
current 32712027 32712027 Loan by
For pledge
assets due 3.54 3.54 pledge
in 1 year
32583940325281663229143432249429
Total
93.0006.3705.6471.78
108Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
23. Short-term borrowings
(1) Classification of short-term borrowings
In RMB
Item Closing balance Opening balance
Guarantee loan 1114026708.98 711492580.56
Credit borrow 300270416.67
Guarantee and pledge loan 1310714488.01 1184641572.44
Other loans 4000000.00 11650469.54
Total 2428741196.99 2208055039.21
Explanation of the classification of short-term borrowings: Guaranteed borrowings are borrowings with credit guarantee provided;
guaranteed and pledged borrowings are borrowings with credit guarantee provided and using intellectual property or margin for
pledge guarantee; other borrowings are discounted borrowings received from customers' acceptance bills or financing letters.
24. Derivative financial liabilities
In RMB
Item Closing balance Opening balance
Forward foreign exchange contract 628367.00
Total 628367.00
25. Notes payable
In RMB
Type Closing balance Opening balance
Commercial acceptance 3443563.69 8781696.46
Bank acceptance 926879613.50 860105250.33
Total 930323177.19 868886946.79
The total amount of outstanding and unpaid notes payable at the end of this period is RMB8936602.56. The reasons for the non-
payment upon maturity are as follows: Among them RMB8584133.56 for bank acceptance bills because the due date of June 29
2024 is Saturday the bank system postpones the deduction to the next working day that is the bank has already made the payment
on Monday July 1 2024; RMB352469.00 for commercial acceptance bills because the supplier did not apply to the bank for
payment in time.
26. Account payable
(1) Account payable
In RMB
Item Closing balance Opening balance
Account repayable and engineering
1332820925.051374752105.25
repayable
Payable installation and implementation
454031510.99481683031.93
fees
Construction payable 57670168.19 86851302.81
Others 26772708.97 29007342.28
Total 1871295313.20 1972293782.27
109Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
(2) Significant accounts payable older than one year or past due
There are no important accounts payable with an age of more than 1 year or overdue at the end of this period.
27. Other payables
In RMB
Item Closing balance Opening balance
Dividend payable 6962732.02
Other payables 110240797.47 117581764.15
Total 117203529.49 117581764.15
(1) Dividend payable
In RMB
Item Closing balance Opening balance
Shareholding of minority shareholders 6962732.02
Total 6962732.02
(2) Other payables
1) Other payables presented by nature
In RMB
Item Closing balance Opening balance
Performance and quality deposit 36615081.07 40096446.17
Deposit 40402857.87 24659670.94
Reserved expense 2197754.18 4785143.40
Others 31025104.35 48040503.64
Total 110240797.47 117581764.15
(2) Significant other accounts payable older than 1 year or past due
In RMB
Item Closing balance Reason
Shenzhen Yikang Real Estate Co. Ltd. 26149417.56 Payment paid as agreed in the contract
Total 26149417.56
28. Prepayment received
(1) Prepayment received
In RMB
Item Closing balance Opening balance
Rental 1799054.73 1432885.03
Total 1799054.73 1432885.03
110Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
29. Contract liabilities
In RMB
Item Closing balance Opening balance
Project funds collected in advance 211877979.62 175345246.29
Material payment and house sale
5020265.6622694108.20
payment.Others 484361.02 124854.98
Total 217382606.30 198164209.47
The amount and reason for the significant change in the book value during the reporting period
In RMB
Item Change Reason
Project funds collected Increased due to the advance payment for engineering contracting
36532733.33
in advance contracts.Material payment and
-17673842.54 Decreased due to the reduction of advance payment for material purchase
house sale payment.Total 18858890.79
30. Employees' wage payable
(1) Employees' wage payable
In RMB
Item Opening balance Increase Decrease Closing balance
1. Short-term remuneration 73557667.19 242537025.41 282944218.70 33150473.90
2. Retirement pension program-
381396.0113522893.8113554927.38349362.44
defined contribution plan
3. Dismiss compensation 124049.06 1089811.46 1213860.52
Total 74063112.26 257149730.68 297713006.60 33499836.34
(2) Short-term remuneration
In RMB
Item Opening balance Increase Decrease Closing balance
1. Wage bonus
allowance and 72008514.84 225356213.47 265515847.20 31848881.11
subsidies
2. Employee welfare 321678.16 6078465.91 6371254.56 28889.51
3. Social insurance 142502.10 5217044.01 5227487.22 132058.89
Including: medical
118083.984272397.974268021.66122460.29
insurance
Labor injury
5534.39478879.08481373.673039.80
insurance
Breeding
18883.73465766.96478091.896558.80
insurance
4. Housing fund 143003.33 5451234.97 5378277.05 215961.25
5. Labor union budget
542240.97434067.05433249.16543058.86
and staff education
111Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
fund
6. Short-term paid
399727.7918103.51381624.28
leave
Total 73557667.19 242537025.41 282944218.70 33150473.90
(3) Defined contribution plan
In RMB
Item Opening balance Increase Decrease Closing balance
1. Basic pension 373813.17 12970379.77 13002045.47 342147.47
2. Unemployment
7582.84552514.04552881.917214.97
insurance
Total 381396.01 13522893.81 13554927.38 349362.44
31. Taxes payable
In RMB
Item Closing balance Opening balance
VAT 4788021.30 5063851.12
Enterprise income tax 14036438.04 13798160.21
Personal income tax 1036373.92 1750380.58
City maintenance and construction tax 576138.95 636181.87
Land using tax 494915.92 608959.21
Property tax 8304804.34 2656539.62
Education surtax 251080.62 273885.15
Local education surtax 167387.13 182589.47
Consumption service tax 10359.29
Land VAT 19663675.05 16543205.26
Others 1280009.65 850956.77
Total 50598844.92 42375068.55
32. Non-current liabilities due within 1 year
In RMB
Item Closing balance Opening balance
Long-term loans due within 1 year 30942037.67 914958.90
Long-term payables due within 1 year 49323018.90
Lease liabilities due within one year 13070051.28 13897158.66
Total 44012088.95 64135136.46
33. Other current liabilities
In RMB
Item Closing balance Opening balance
Unterminated notes receivable 21162837.86 27937899.17
Substituted money on VAT 26043891.43 25586755.88
Total 47206729.29 53524655.05
112Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
34. Long-term borrowings
(1) Classification of long-term borrowings
In RMB
Item Closing balance Opening balance
Guaranteed and mortgage loans 250218750.00
Guarantee mortgage and pledge loan 660723287.67 660914958.90
Less: Long-term loans due within 1 year 30942037.67 914958.90
Total 880000000.00 660000000.00
Notes to classification of long-term borrowings:
(1) The pledges in the above guarantees mortgages and pledges of borrowings are pledges of the Company's 100% equity interest
in its subsidiary Fangda Real Estate which is directly and indirectly held by the Company and the rent receivables from its self-
owned rental properties in Fangda Town.
(2) The interest rate range for long-term borrowings is 3% to 6%.
35. Lease liabilities
In RMB
Item Closing balance Opening balance
Lease payments 26684228.98 23255219.85
Less: unrecognized financing expenses 1491589.81 2682191.15
Less: lease liabilities due within one year 13070051.28 13897158.66
Total 12122587.89 6675870.04
36. Long-term payables
In RMB
Item Closing balance Opening balance
Long-term payable 48400000.00
Total 48400000.00
(1) Long term accounts payable listed by nature
In RMB
Item Closing balance Opening balance
Equity repurchase payment 0.00 48400000.00
37. Anticipated liabilities
In RMB
Item Closing balance Opening balance Reason
Loss contract to be executed 341507.92 193502.52
Maintenance fee 3984129.49 4648908.95 Product quality warranty
Total 4325637.41 4842411.47
113Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
38. Deferred earning
In RMB
Item Opening balance Increase Decrease Closing balance Reason
Government See the following
8978678.722321892.00313198.2510987372.47
subsidy table
Total 8978678.72 2321892.00 313198.25 10987372.47
Items involving government subsidies:
Other
Balance as of
Amount of misc. gains Balance as of June Related to
Item December 31
new subsidy recorded in 30 2024 assets/earning
2023
this period
Railway transport screen
door controlling system
3458.27 3458.27 Assets-related
and information
transmission technology
Major investment project
prize from Industry and
Trade Development 1395238.70 28571.40 1366667.30 Assets-related
Division of Dongguan
Finance Bureau
Distributed PV power
generation project subsidy
sponsored by Dongguan 293750.33 12499.98 281250.35 Assets-related
Reform and Development
Commission
Subsidized land transfer 162376.31 1862.82 160513.49 Assets-related
Special subsidy for
industrial transformation
1150688.31 75869.58 1074818.73 Assets-related
upgrading and
development
Enterprise
informationization
subsidy project of
276000.00 24000.00 252000.00 Assets-related
Shenzhen Small and
Medium Enterprise
Service Agency
National Industry
Revitalization and
4762526.30 153864.30 4608662.00 Assets-related
Technology Renovation
Project fund
Subsidy for new plant 934640.50 13071.90 921568.60 Assets-related
Land construction subsidy 2321892.00 2321892.00 Assets-related
Total 8978678.72 2321892.00 313198.25 10987372.47
39. Capital share
In RMB
Change (+-)
Opening balance Issued new Bonus Transferred Subtot Closing balance
Others
shares shares from reserves al
Total of
1073874227.001073874227.00
capital shares
114Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
40. Capital reserve
In RMB
Item Opening balance Increase Decrease Closing balance
Capital premium (share
10005491.0561979.159943511.90
capital premium)
Other capital reserves 1454097.35 1454097.35
Total 11459588.40 61979.15 11397609.25
Other explanations including the changes in this period and the reasons for the changes: The reduction in this period is the
difference between the cost of long-term equity investment obtained by acquiring minority equity and the corresponding net asset
book value.
41. 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 attributed before 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
--
will not be
25201209.25201209.
subsequentl
2727
y
reclassified
into profit
and loss
Fair value
change of - -
investment 25201209. 25201209.in other 27 27
equity tools
2. Other
misc.incomes
that will be 48323080. 38331442. 9742967.0 28592893. 76915973.-4417.66
re- 06 45 5 06 12
classified
into gain
and loss
Cash -
---
flow hedge 170878.62 676913.8 -4874.61
802104.06120315.61506035.22
reserve 4
115Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Translation
difference
--
of foreign 236706.94 456.95 -83334.12
319584.11320041.06
exchange
statement
Investme
nt real
estate 47915494. 39453130. 9863282.6 29589847. 77505342.measured 50 62 6 96 46
at fair
value
Other
23121870.38331442.9742967.028592893.51714763.
miscellane -4417.66
794550685
ous income
42. Surplus reserves
In RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus reserves 79324940.43 79324940.43
Total 79324940.43 79324940.43
43. Retained profit
In RMB
Item Current period Last period
Adjustment on retained profit of previous
4772359940.454553295402.30
period
Retained profit adjusted at beginning of year 4772359940.45 4553295402.30
Plus: Net profit attributable to owners of the
116795117.62182155268.18
parent
Common share dividend payable 85909938.16 53693711.35
Closing retained profit 4803245119.91 4681756959.13
44. Operational revenue and costs
In RMB
Amount occurred in the current period Occurred in previous period
Item
Income Cost Income Cost
Main business 2115537007.16 1724711866.23 1994095251.72 1613648910.68
Other businesses 18308580.60 12887318.75 84751625.60 10581557.95
Total 2133845587.76 1737599184.98 2078846877.32 1624230468.63
Note: The decrease in other operating income in this period is mainly due to the adjustment of the rental income of the subsidiary
whose main business is real estate leasing from other operating income to main operating income in this period. The rental income
in this period is RMB69095799.23 and the rental income in the previous period is RMB73425170.71.
116Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Breakdown of operating revenues and operating costs:
In RMB
Segment 1 - Segment 2 - Rail Segment 3 -
Segment 4 - New Segment 5 -
Contra Curtain wall and transport screen Commercial real Total energy Others
ct new materials door business estate
classifi Operat Operat Operat Operat Operat Operat
cation Turnov Turnov Turnov Turnov Turnov Turnoving ing ing ing ing ing
er er er er er er
cost cost cost cost cost cost
173714982634520433118823041921331737
Busine 7061 3952 6745 38387
75473853635042.4717.8634.966.08455859918
ss type 695.63 479.21 475.62 .33
9.774.9238473657.764.98
Includi
ng:
Curtai
n wall
system 1737 1498 1737 1498
and 75473 85363 75473 85363
new 9.77 4.92 9.77 4.92
materi
als
Subwa
y
26345204332634520433
screen
5042.4717.5042.4717.
door
38473847
and
service
Comm
ercial
real
estate
11882304191188230419
leasing
8634.966.08634.966.0
and
365365
propert
y
service
s
PV
power
genera 7061 3952 7061 3952
tion 695.63 479.21 695.63 479.21
produc
ts
674538387674538387
Others
475.62.33475.62.33
By
173714982634520433118823041921331737
operati 7061 3952 6745 38387
75473853635042.4717.8634.966.08455859918
ng 695.63 479.21 475.62 .33
9.774.9238473657.764.98
region
Includi
ng:
167214481503012472118823041919551607
In 7061 3952 6745 38387
51245049208848.3170.8634.966.04571018321
China 695.63 479.21 475.62 .33
2.597.4624683656.440.73
117Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
652425080411314796111783813041
Out of
287.1427.46194.546.78481.5974.
China
861493225
(1) The information of operating revenue broken down by revenue recognition time is as follows:
Item January to June 2024 (yuan) January to June 2023 (yuan)
Revenue recognized at a certain point
231875066.13284640620.34
in time
Revenue recognized over a period of
1901970521.631794206256.98
time
Total 2133845587.76 2078846877.32
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 2024 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.The amount of revenue corresponding to the performance obligations that have been signed but not yet
performed or not yet performed at the end of the reporting period is RMB8900311936.77 of which
RMB2238894511.23 is expected to be recognized in the second half of 2024 and RMB3899420951.80 is
expected to be recognized in 2025 RMB2761996473.74 is expected to be recognized in 2026 and beyond.
45. Taxes and surcharges
In RMB
Item Amount occurred in the current period Occurred in previous period
City maintenance and construction tax 3231945.08 4446267.60
Education surtax 2248674.08 2918968.56
Property tax 9979214.78 9523215.93
Land using tax 952023.94 888300.59
Vehicle usage tax 8760.00 10290.00
Stamp tax 2082243.80 1554773.97
Land VAT 3489085.76 2802673.55
Others 168005.35 359251.36
Total 22159952.79 22503741.56
118Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
46. Management expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 57329867.92 51557093.96
Agencies 2839264.19 3942772.45
Depreciation and amortization 7207803.35 7282563.56
Office expense 4020332.41 5141931.61
Entertainment expense 5332709.90 2551085.91
Amortization of right of use assets and
2246218.581904893.13
lease fees
Lawsuit 38842.74 2954790.97
Travel expense 2010823.16 1575151.34
Others 3815696.70 2680658.53
Total 84841558.95 79590941.46
47. Sales expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 12788956.33 13183424.46
Sales agency fee 982162.22 1773126.99
Entertainment expense 2417855.86 2554127.30
Travel expense 1410466.32 1390759.29
Advertisement and promotion fee 1313336.10 830068.74
Amortization of right of use assets and
684175.8283983.81
lease fees
Others 3961319.31 8328066.20
Total 23558271.96 28143556.79
48. R&D cost
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 50364726.96 48716037.44
Material costs 26975019.70 29157592.26
Agencies 4956566.33 4191108.26
Depreciation costs 840171.99 999888.33
Amortization of intangible assets 509458.78 497817.82
Others 1993659.12 5427066.55
Total 85639602.88 88989510.66
49. Financial expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Interest expense 29211652.87 48188161.19
Less: discount government subsidies 308700.00
Less: Interest income 11466633.99 12097319.82
Acceptant discount 12789518.90 7888113.87
Exchange gain/loss -1419923.57 -11140562.06
119Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Commission charges and others 2375368.88 1214164.61
Total 31489983.09 33743857.79
50. Other gains
In RMB
Amount occurred in the current
Source Occurred in previous period
period
Government subsidies related to deferred income
313198.25283322.58
(related to assets)
Government subsidies directly included in current
8287811.037695968.32
profits and losses (related to income)
Other items related to daily activities and included in
2861328.23584491.42
other income
Total 11462337.51 8563782.32
51. 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
555662.75122109.40
value
Other non-current financial assets 2702.12 7782.60
Total 558364.87 129892.00
52. Investment income
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Gains from long-term equity investment measured by
-34959.52294.42
equity
Investment income from disposal of trading financial
-890803.00
assets
Financial assets de-recognized as a result of amortized
-1123208.42-2362127.61
cost
Income from derecognition of other financial assets
-33150.26
measured at fair value
Total -2082121.20 -2361833.19
53. Credit impairment loss
In RMB
Item Amount occurred in the current period Occurred in previous period
Bad debt loss of other receivables -781873.49 -716812.51
Bad debt loss of accounts receivable and
-7092925.5120991390.10
notes receivable
120Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Total -7874799.00 20274577.59
54. Assets impairment loss
In RMB
Item Amount occurred in the current period Occurred in previous period
Contract asset impairment loss -15876085.85 -14673904.92
Total -15876085.85 -14673904.92
55. 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
3289.7850072.23
progress productive biological assets
and intangible assets
Including: Fixed assets 3289.78 50072.23
Disposal of use right assets -4780.00 323279.85
Total -1490.22 373352.08
56. Non-business income
In RMB
Amount occurred in the Occurred in previous Amount accounted into the current
Item
current period period accidental gain/loss
Penalty income 58348.90 106311.57 58348.90
Compensation
46335.0039036.8046335.00
received
Others 74076.65 58698.17 74076.65
Total 178760.55 204046.54 178760.55
57. Non-business expenses
In RMB
Amount occurred in the Occurred in previous Amount accounted into the current
Item
current period period accidental gain/loss
Donation 50000.00 217861.40 50000.00
Loss from retirement of
136535.8323473.88136535.83
damaged non-current assets
Penalty and overdue fine 84167.14 43356.01 84167.14
Lawsuit indemnity 53158.01
Others 265000.51 232013.29 265000.51
Total 535703.48 569862.59 535703.48
121Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
58. Income tax expenses
(1) Details about income tax expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Income tax expenses in this period 25927934.50 33781299.25
Deferred income tax expenses -9408915.24 -5591393.81
Total 16519019.26 28189905.44
(2) Adjustment process of accounting profit and income tax expense
In RMB
Item Amount occurred in the current period
Total profit 134386296.29
Income tax expenses calculated based on the legal (or applicable) tax
33596574.07
rates
Impacts of different tax rates applicable for some subsidiaries -7756825.23
Impacts of income tax before adjustment 2538283.55
Impacts of non-deductible cost expense and loss 1332361.35
Profit and loss of associates and joint ventures calculated using the
8739.88
equity method
Impact of tax rate change on the opening balance of deferred income
-25453.99
taxTaxation impact of R&D expense and (presented with "-”) -13174660.37
Income tax expenses 16519019.26
59. Other miscellaneous income
See Note 41 Other comprehensive income in this section for details.
60. 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 6489453.44 4863151.74
Subsidy income 9451485.75 6530882.67
Retrieving of bidding deposits 22816388.75 20253140.27
Other operating accounts 5152936.76 11800747.12
Total 43910264.70 43447921.80
Other cash paid for business operations
In RMB
Item Amount occurred in the current period Occurred in previous period
122Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Pocket expenses 27505053.77 25234094.43
Bidding deposit paid 18891370.53 17035960.19
Net draft deposit net paid 261383332.31 199180751.42
Other trades 4256435.20 23008888.00
Total 312036191.81 264459694.04
(2) Cash related to investment activities
Other cash paid for investment
In RMB
Item Amount occurred in the current period Occurred in previous period
Loss on forward foreign exchange
890803.00
contract delivery
Total 890803.00
(3) Cash related to financing
Other cash received from financing activities
In RMB
Item Amount occurred in the current period Occurred in previous period
Maturity principal and interest of
330600944.44
pledged large-scale time deposit
Total 330600944.44
Other cash paid related to financing activities
In RMB
Item Amount occurred in the current period Occurred in previous period
Bill discount financing deposit 115912636.08 60589831.95
Principal and interest of lease liabilities 10536884.00 8096984.15
Payment for repurchase of equity interest
98116151.32
in Fangda Zhiyuan
Total 224565671.40 68686816.10
Changes in liabilities arising from financing activities
□ Applicable □ Inapplicable
In RMB
Increase Decrease
Opening
Item
balance Non-cash Non-cash
Closing balance
Change in cash Change in cash
change change
Short-term 2208055039. 2253971200. 1807897897. 2428741196.
225387145.05
loans 21 00 17 99
Long-term
borrowings
(including
660914958.90250000000.0016767578.7616740499.99910942037.67
portion due
within one
year)
Lease liabilities 20573028.70 15156494.47 10536884.00 25192639.17
123Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
(including
portion due
within one
year)
Long-term
accounts
payable
(including 97723018.90 393132.42 98116151.32
portion due
within one
year)
2987266045.2503971200.1933291432.3364875873.
Total 32317205.65 225387145.05
71004883
(4) 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 Corresponding deposits for
exchange etc. bills of exchange are
Quick turnaround and short
presented on a net basis None
Net deposits received such as maturity
according to changes in their
bills of exchange
balances
(5) Significant activities and financial effects that do not involve current cash receipts and disbursements
but affect the enterprise's financial position or may affect the enterprise's cash flows in the future
No
61. 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 117867277.03 185394944.82
Plus: Asset impairment provision 23750884.85 -5600672.67
Fixed asset depreciation gas and petrol depreciation
15141781.3714896760.41
production goods depreciation
Depreciation of right to use assets 7908083.39 7370647.68
Amortization of intangible assets 3687708.38 2451985.26
Amortization of long-term amortizable expenses 1985263.44 2107067.00
Loss from disposal of fixed assets intangible assets and
1490.22-373352.08
other long-term assets ("-" for gains)
Loss from fixed asset discard ("-" for gains) 136535.83 23473.88
Loss from fair value fluctuation ("-" for gains) -558364.87 -129892.00
Financial expenses ("-" for gains) 42001171.77 56076275.06
Investment losses ("-" for gains) 958912.78 -294.42
124Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Decrease of deferred income tax asset ("-" for increase) -6770444.84 -4214889.76
Increase of deferred income tax asset ("-" for increase) 7104496.65 -4647431.65
Decrease of inventory ("-" for increase) 2846757.44 34523652.33
Decrease of operational receivable items ("-" for increase) -307138399.56 -149791569.44
Increase of operational receivable items ("-" for decrease) -56399743.16 -154844906.67
Others -24054408.93 -20555508.88
Cash flow generated by business operations net -171530998.21 -37313711.13
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 908462270.84 748672706.05
Less: Initial balance of cash 779661118.42 783677929.06
Add: Ending balance of cash equivalents
Less: Ending balance of cash equivalents
Net increase in cash and cash equivalents 128801152.42 -35005223.01
(2) Composition of cash and cash equivalents
In RMB
Item Closing balance Opening balance
I. Cash 908462270.84 779661118.42
Including: Cash in stock 28569.08 5350.98
Bank savings can be used at any time 894082425.59 742322526.29
Other monetary capital can be used at any
14351276.176344828.78
time
III. Balance of cash and cash equivalents at end
908462270.84779661118.42
of term
(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 776544406.75 537833587.91 Use restricted
Total 776544406.75 537833587.91
62. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Closing foreign currency
Item Exchange rate Closing RMB balance
balance
125Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Monetary capital 60525119.37
Including: USD 4921776.90 7.1268 35076519.26
Euro 0.01 7.6617 0.08
HK Dollar 10186412.49 0.9127 9296934.97
Vietnamese currency 1676745450.00 0.0003 469403.04
SGD 1486881.68 5.2790 7849248.39
AUD 1643864.35 4.7650 7833013.63
Account receivable 4126819.39
Including: USD 4560.00 7.1268 32498.21
HK Dollar 172200.00 0.9127 157163.50
AUD 826266.04 4.7650 3937157.68
Contract assets 128499944.91
Including: USD 12246126.13 7.1268 87275691.72
INR 64687475.47 0.0854 5522951.97
Euro 2799793.70 7.6617 21451179.38
AUD 2990581.71 4.7650 14250121.84
Other receivables 2462223.56
Including: USD 208645.94 7.1268 1486977.89
HK Dollar 756602.35 0.9127 690535.83
SGD 25075.00 5.2790 132370.93
AUD 31970.39 4.7650 152338.91
Account payable 17660445.20
Including: USD 1157913.82 7.1268 8252220.21
HK Dollar 2742472.43 0.9127 2502999.74
INR 193375.00 0.0854 16510.16
AUD 1443537.98 4.7650 6878458.47
SGD 1942.91 5.2790 10256.62
Other payables 425278.22
Including: USD 36973.55 7.1268 263503.09
AUD 33950.71 4.7650 161775.13
(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
63. 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 2024
Short term lease expenses with simplified treatment included in current profit and loss 25437567.00
126Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Lease expenses of low value assets with simplified treatment included in current profit
202015.49
and loss (except short-term lease)
Interest expense on lease liabilities 526573.34
Total cash outflow related to leasing 31632243.77
Involvement in sale-and-leaseback transactions: None.
(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 69095799.23 168411.76
Total 69095799.23 168411.76
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 138087637.15 132605879.94
Second year 117339492.09 115552250.91
Third year 82815740.12 94134268.43
Fourth year 59828831.71 59112763.63
Fifth year 37263612.05 39342690.51
Total undiscounted lease receipts after
103540429.3890429704.69
five years
VIII. R&D expenses
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 50364726.96 48716037.44
Material costs 26975019.70 29157592.26
Agencies 4956566.33 4191108.26
Depreciation costs 840171.99 999888.33
Amortization of intangible assets 509458.78 497817.82
Others 1993659.12 5427066.55
Total 85639602.88 88989510.66
Including: Expensed R&D expenditure 85639602.88 88989510.66
127Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
IX. Change to Consolidation Scope
1. Change to the consolidation scope for other reasons
During this period the Company added one wholly-owned subsidiary Fangda Curtain Wall Singapore Co.Ltd. through establishment; and reduced one subsidiary Shenzhen Fangda Investment Partnership (Limited
Partnership) through liquidation and cancellation.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 21380400.0 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.Designing
Fangda manufacturin
Curtain Wall g and
1583700.00 Singapore Singapore 100.00% Incorporation
Singapore installation
Co. Ltd. of curtain
walls
Jiangxi Production
Fangda and sales of
Intelligent 200000000. new-type
Ganzhou Ganzhou 99.00% 1.00% Incorporation
Manufacturin 00 materials and
g Technology composite
Co. Ltd. materials
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
Chengdu Trusted
Fangda processing of
50000000.0
Construction Chengdu Chengdu building 100.00% Incorporation
0
Technology curtain wall
Co. Ltd. materials
Fangda 14295000.0 Australia Australia Designing 100.00% Incorporation
128Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Australia 0 manufacturin
Co. Ltd. g and
installation
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
Chengdu 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.Nanchang
Design and
Xinjian
10000000.0 construction
Fangda New Nanchang Nanchang 100.00% Incorporation
0 of PV power
Energy Co.plants
Ltd.
129Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Dongguan Design and
Fangda New 10000000.0 construction
Dongguan Dongguan 100.00% Incorporation
Energy Co. 0 of PV power
Ltd. plants
Project
Shenzhen
investment
Xunfu
100000.00 Shenzhen Shenzhen and 100.00% Incorporation
Investment
investment
Co. Ltd
consultancy
Project
Shenzhen
investment
Lifu
1000000.00 Shenzhen Shenzhen and 52.00% Incorporation
Investment
investment
Co. Ltd
consultancy
Production
Fangda processing
Zhichuang 105000000. and
Shenzhen Shenzhen 51.00% 43.29% Incorporation
Technology 00 installation
Co. Ltd. of subway
screen doors
Shenzhen
Qianhai
Software
Kechuangyu 5000000.00 Shenzhen Shenzhen 94.29% Incorporation
development
an Software
Co. Ltd.Fangda
Zhiyuan
Metro screen
Technology 8435.80 Hong Kong Hong Kong 94.29% Incorporation
door
(Hong Kong)
Co. Ltd.Production
Fangda
processing
Zhiyuan
10000000.0 and
Technology Wuhan Wuhan 94.29% Incorporation
0 installation
(Wuhan) Co.of subway
Ltd.screen doors
Fangda
Production
Zhiyuan
processing
Railway
and
Transportatio 1000000.00 Dongguan Dongguan 94.29% Incorporation
installation
n Equipment
of subway
(Dongguan)
screen doors
Co.Production
Fangda
processing
Zhiyuan
and
Technology 1000000.00 Nanchang Nanchang 94.29% Incorporation
installation
(Nanchang)
of subway
Co. Ltd.screen doors
Production
General processing
Railway and
47880.30 Singapore Singapore 94.29% Incorporation
Technology installation
Ltd. of subway
screen doors
Shenzhen 200000000. Real estate
Shenzhen Shenzhen 99.00% 1.00% Incorporation
Fangda 00 development
130Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Property and operation
Development
Co. Ltd.Shenzhen
Fangda
10000000.0 Property
Property Shenzhen Shenzhen 100.00% Incorporation
0 management
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.Prodution
and sales of
Fangda New new-type
Materials 99328800.0 materialsm
Nanchang Nanchang 75.00% 25.00% Incorporation
(Jiangxi) Co. 0 composite
Ltd. materials and
production of
curtain walls
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
131Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
(2) Major non wholly-owned subsidiaries
In RMB
Profit and loss Dividend to be Interest balance of
Shareholding of
Company attributed to minority distributed to minority minority shareholders
minority shareholders
shareholders shareholders in the end of the period
Fangda Zhiyuan
5.71%1074521.806962732.0218155735.00
Technology
Zhongrong Litai 45.00% -2277.15 48297150.41
(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 current current 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 20994 10236 10261 20963 20992 10240 10259
24216247782851019033
rong 8594. 0755. 5964. 3754. 7980. 3087. 0696. 1026.
0.399.996.810.21
Litai 92 31 40 39 81 62 16 37
Fangd
a
87697144551021681942185270379772721476092033484981369649867
Zhiyua
1774.2506.524286798.914.59713.5686.7926.3612.2075.876.28951.
n
41721.134190009788734155
Techn
ology
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
55045.86-5060.33-5060.333614.1155045.86-76530.05-76530.05101149.87
Litai
Fangda - -
2634550417975469.17917717.2916154654940579.55117691.
Zhiyuan 40109210. 34107845.
2.3857092.851694
Technology 54 79
2. Change in the ownership share of the subsidiary and control of the transaction of the subsidiary
(1) Description of changes in owner's equity shares of subsidiaries:
On May 30 2024 the subsidiary of the Company Fangda Partnership transferred 51% of its equity in Zhiyuan Technology
Company to the Company. Shenzhen Zhuoshun Investment Co. Ltd. indirectly held 0.2448% of the equity in Zhiyuan Technology
Company through its indirect holding of Fangda Partnership and this part of the equity was also transferred. The corresponding
transfer amount for this part of the equity is RMB 1140260.53.
132Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
(2) Impact of transaction on minority shareholders' equity and owner's equity attributable to parent company
In RMB
Item Amount
Disposal consideration - cash 1140260.53
Less: Share of net assets of subsidiaries calculated according to the
1078281.38
proportion of equity disposed
Difference 61979.15
Including: adjustment of capital reserve 61979.15
3. 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 54722057.88 54757017.40
Total shareholding
Net profit -34959.52 294.42
--Total of misc. incomes -34959.52 294.42
XI. Government Subsidies
1. Governmental subsidy recognized as receivable at the end of the report period
□ Applicable □ Inapplicable
Closing balance of accounts receivable: RMB852854.43.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 Assets/earnin
Opening balance in non- gains recorded in the Closing balance
ng item subsidy g-related
operating in this period current
revenue period
Deferred Assets-
8978678.722321892.00313198.2510987372.47
earning related
Total 8978678.72 2321892.00 313198.25 10987372.47
133Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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 8601009.28 7979290.90
Financial expenses 308700.00
Total 8601009.28 8287990.90
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.
(1) Credit risk
Credit risk is caused by the failure of one party of a financial instrument in performing its obligations causing the risk of
financial loss for the other party. The credit risk of the Company mainly comes 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.* 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.
134Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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.* 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.* 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 accounts receivable and contract assets of the Company the accounts receivable and contract assets of the top
five customers accounted for 10.83% of the total accounts receivable and contract assets of the Company (beginning of the period:
11.45%); among the other receivables of the Company the other receivables of the top five companies with the largest amount of
debts accounted for 68.87% of the total other receivables of the Company (beginning of the period: 72.01%).
135Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
(2) Liquidity risk
Liquidity risk is the risk of capital shortage when the Group needs to pay cash or settled with other financial assets. The
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.As of June 31 2024 the maturity of the Company's financial liabilities is as follows:
In RMB10000
June 30 2024
Item
Less than 1 year Within 1-3 years Over 3 years Total
Short-term loans 242874.12 242874.12
Derivative financial liabilities 62.84 62.84
Notes payable 93032.32 93032.32
Account payable 184930.52 747.59 1451.42 187129.53
Other payables 4292.75 1598.28 5829.32 11720.35
Non-current liabilities due in 1
4401.214401.21
year
Other current liabilities 4720.67 4720.67
Long-term loans 39500.00 48500.00 88000.00
Lease liabilities 939.79 272.47 1212.26
Total liabilities 534314.43 42785.66 56053.21 633153.30
(Continued)
December 31 2023
Item
Less than 1 year Within 1-3 years Over 3 years Total
Short-term loans 220805.50 220805.50
Notes payable 86888.69 86888.69
Account payable 195524.32 1415.80 289.26 197229.38
Other payables 5168.51 1010.36 5579.31 11758.18
Non-current liabilities due in 1
6413.516413.51
year
Other current liabilities 5352.47 5352.47
Long-term loans 30000.00 36000.00 66000.00
Lease liabilities 578.6 88.99 667.59
Long-term payable 4840.00 4840.00
Total 520153.00 37844.76 41957.56 599955.32
(3) Market risk
* Credit risks
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.
136Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
As of June 30 2024 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 62.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.* 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.During the period ended June 30 2024 if the borrowing interest rate calculated at a floating rate increases or decreases by
50 basis points while other risk variables remain unchanged the Company's net profit for one year will decrease or increase by
4.8125 million (December 31 2023: RMB3.60 million).
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 Company has
The underlying
hedging and forward foreign formulated
variables are all
protection function exchange contracts relevant internal
foreign currency
of forward foreign to hedge expected management
exchange rates.exchange receivables. The systems for its Buy or sell
The exchange rates
contracts the Company adopts aluminum futures corresponding
of the hedged item
Company carries the strategy of hedging and forward foreign
Forward foreign and the hedging
out the business of dynamic hedging forward foreign exchange contracts
exchange contract instrument change
hedging foreign of exchange rate exchange trading to hedge the risk
value preservation in opposite
currency risk exposure and business and exposure of
directions due to
receivables in adjusts the position continuously foreign currency
exposure to the
order to reasonably of foreign evaluates the receivables.same hedged risk
avoid the risks exchange contracts effectiveness of
and there is a
brought by according to the hedging to ensure
relationship of risk
exchange rate expected foreign that the hedging
hedging.fluctuations to its currency relationship is
137Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
operations receivables effective in the
enhance the exposure. designated
Company's overall accounting period
ability to withstand and that the risks
risks and of fluctuations in
strengthen the raw material
soundness of its purchasing prices
operating and exchange rate
activities. fluctuations of
foreign-currency
receivables are
controlled within a
reasonable range
so as to enhance
the Company's
risk-resistance
ability and
increase the
robustness of its
operating
activities.
(2) The Company conducts eligible hedging operations and applies hedge accounting.
In RMB
Cumulative fair value
Carrying value
hedge adjustments to Hedge
associated with
hedged items included effectiveness and Impact of hedge accounting related to the
Item hedged items
in the carrying value sources of hedge Company's financial statements
and hedging
of the hedged item ineffectiveness
instruments
recognized
Types of hedge risk
Derivative financial liabilities:
Relevance of
RMB628367.00 other comprehensive
Exchange rate hedged items to
-628367.00 Inapplicable income: RMB-506035.22 investment
risk hedging
income: RMB-890803.00 financial
instruments
expenses: RMB-419124.00.Type
Derivative financial liabilities:
Relevance of
RMB628367.00 other comprehensive
Cash flow hedged items to
-628367.00 Inapplicable income: RMB-506035.22 investment
hedging hedging
income: RMB-890803.00 financial
instruments
expenses: RMB-419124.00.
(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
3. Financial Assets
(1) Classification of transfer methods
□ Applicable □ Inapplicable
138Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
In RMB
Nature of financial assets Amount of financial
Way of transfer Derecognition Basis for judging derecognition
transferred assets transferred
Promissory notes used for
discounting or endorsement are
accepted by banks or enterprises
with low credit ratings
Endorsement or Outstanding promissory
21162837.86 Not derecognized discounting or endorsement does
discounting notes in notes receivable
not affect recourse and the credit
risk and deferred payment risk
associated with the notes remain
not transferred
Bankers' acceptances used for
discounting or endorsement are
Outstanding bankers'
Endorsement or accepted by banks with high credit
acceptances in receivables 44709465.46 Derecognition
discounting ratings and the credit risk and
financing
deferred payment risk associated
with the instruments are low
Outstanding receivables
Factoring 41318451.21 Derecognition Non-recourse factoring
in receivables financing
Total 107190754.53
(2) Financial assets derecognized due to transfers
□ Applicable □ Inapplicable
In RMB
Transfer method of Amount of financial assets Gain or loss related to the de-
Item
financial assets derecognized recognition
Outstanding bankers' acceptances Endorsement or
44709465.46-33150.26
in receivables financing discounting
Account receivable Factoring 41318451.21 -1123208.42
Total 86027916.67 -1156358.68
(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 fair
Third level fair value Total
value value
1. Continuous fair value
--------
measurement
(1) Receivable financing 4668854.47 4668854.47
(2) Investment real estate 5675245990.63 5675245990.63
1. Leased building 5675245990.63 5675245990.63
139Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
(3) Other non-current financial
6371282.046371282.04
assets
Total assets measured at fair value
4668854.475681617272.675686286127.14
continuously
(4) Transactional financial
628367.00628367.00
liabilities
Including: Derivative financial
628367.00628367.00
liabilities
Total assets measured at fair value
628367.00628367.00
continuously
2. Discontinuous fair value
--------
measurement
2. Recognition basis of market value of continuous and discontinuous items measured at first level fair
value
The Group determines the fair value using quotation in an active market for financial instruments traded in
an active market;
3. Valuation technique and qualitative and quantitative information for key parameters of continuous
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、. 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.
140Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
6. Fair value of financial assets and liabilities not measured at fair value
Financial assets and liabilities measured at amortized cost include: monetary capital bills receivable
accounts receivable contractual 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
Register Share of the parent Voting power of
Registered
Parent ed Business co. in the the parent
capital
address Company company
Shenzhen Banglin Technologies Shenzhe Industrial
RMB30 million 11.11% 11.11%
Development Co. Ltd. n investment
Hong Industrial
Shengjiu Investment Ltd. HKD1 million 10.25% 10.25%
Kong investment
Particulars about the parent of the Company
* 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.* Among the top 10 shareholders Shenzhen Banglin Technology Development Co. Ltd. and Shengjiu Investment Co. Ltd. are
acting in concert.The final controller of the Company is Xiong Jianming.
2. Subsidiaries of the Company
For details of subsidiaries of the enterprise please refer to Note 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
4. Other associates
Other related parties Relationship with the Company
Jiangxi Business Innovative Property Joint Stock Co. Ltd. Affiliates of the Company
Gong Qing Cheng Shi Li He Investment Management Affiliated relationship with Shenzhen Banglin Technology
Partnership Enterprise (limited partner) Development Co. Ltd.Shenyang Fangda Subsidiary in liquidation
Shenzhen Yikang Real Estate Co. Ltd. Controlled subsidiaries
Shenzhen Qijian Technology Co. Ltd. (Qijian Technology) Common actual controller
141Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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 0.00 124524.04
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 0.00 434285.70
(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 date
Fangda Jianke 24000.00 May 5 2023 Yes
of debt performance
Three years after the expiration date
Fangda Jianke 4000.00 May 15 2023 Yes
of debt performance
Three years after the expiration date
Fangda Jianke 60000.00 January 21 2023 Yes
of debt performance
Three years after the expiration date
Fangda Jianke 15000.00 May 25 2022 Yes
of debt performance
Three years after the expiration date
Fangda Zhiyuan 10000.00 May 25 2022 Yes
of debt performance
Three years after the expiration date
Fangda Jianke 39000.00 December 9 2022 Yes
of debt performance
Three years after the expiration date
Fangda Yunzhu 1000.00 March 30 2023 Yes
of debt performance
Three years after the expiration date
Fangda Zhiyuan 36000.00 June 20 2023 Yes
of debt performance
Three years after the expiration date
Fangda Zhijian 7000.00 May 15 2023 Yes
of debt performance
Three years after the expiration date
Fangda Zhiyuan 15000.00 May 5 2023 Yes
of debt performance
Three years after the expiration date
Fangda Yunzhu 600.00 May 11 2023 Yes
of debt performance
Total amount of guarantee
211600.00
fulfilled
142Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Three years after the expiration date
Fangda Jianke 93000.00 December 28 2023 No
of debt performance
Three years after the expiration date
Fangda Jianke 39000.00 January 24 2024 No
of debt performance
Three years after the expiration date
Fangda New Material 10000.00 April 18 2023 No
of debt performance
Three years after the expiration date
Fangda Yunzhu 1000.00 June 28 2024 No
of debt performance
Three years after the expiration date
Fangda Yunzhu 1000.00 May 7 2024 No
of debt performance
Three years after the expiration date
Fangda New Material 8500.00 November 2 2023 No
of debt performance
Three years after the expiration date
Fangda Zhiyuan 10000.00 September 25 2023 No
of debt performance
Three years after the expiration date
Fangda Jianke 15000.00 May 11 2024 No
of debt performance
Three years after the expiration date
Fangda Zhijian 7000.00 May 8 2024 No
of debt performance
Three years after the expiration date
Fangda Jianke 48000.00 December 15 2023 No
of debt performance
Three years after the expiration date
Fangda Zhiyuan 10000.00 December 21 2023 No
of debt performance
Three years after the expiration date
Fangda Zhiyuan 18000.00 December 15 2023 No
of debt performance
Three years after the expiration date
Fangda Jianke 11400.00 August 16 2023 No
of debt performance
Three years after the expiration date
Fangda Jianke 50000.00 September 28 2023 No
of debt performance
Three years after the expiration date
Fangda Jianke 30000.00 September 25 2023 No
of debt performance
Three years after the expiration date
Fangda Jianke 30000.00 October 20 2023 No
of debt performance
Three years after the expiration date
Fangda Jianke 4000.00 June 20 2024 No
of debt performance
Three years after the expiration date
Fangda Jianke 20000.00 October 9 2023 No
of debt performance
Three years after the expiration date
Fangda Jianke 60000.00 June 27 2024 No
of debt performance
Three years after the expiration date
Fangda Zhiyuan 36000.00 June 27 2024 No
of debt performance
Three years after the expiration date
Fangda Jianke 24000.00 May 27 2024 No
of debt performance
Three years after the expiration date
Fangda Zhiyuan 15000.00 May 30 2024 No
of debt performance
Three years after the expiration date
Fangda Zhiyuan 20000.00 October 7 2023 No
of debt performance
Three years after the expiration date
Fangda Zhiyuan 15000.00 September 25 2023 No
of debt performance
Three years after the expiration date
Fangda Zhiyuan 10000.00 May 11 2024 No
of debt performance
Three years after the expiration date
Fangda Zhiyuan 15550.00 November 21 2023 No
of debt performance
Three years after the expiration date
Fangda Yunzhu 600.00 June 3 2024 No
of debt performance
Three years after the expiration date
Fangda Jianke 50000.00 October 23 2023 No
of debt performance
Fangda Property 135000.00 February 25 2020 Three years after the expiration date No
143Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
of debt performance
Fangda Intelligent Three years after the expiration date
30000.00 February 22 2024 No
Manufacturing of debt performance
Three years after the expiration date
Fangda Jianke 30000.00 December 21 2023 No
of debt performance
Three years after the expiration date
Fangda Jianke 20000.00 November 2 2023 No
of debt performance
The date of completion of the
Fangda Zhiyuan 31896.02 February 17 2024 No
project contract.The date of completion of the
Fangda Zhiyuan 24885.16 February 17 2024 No
project contract.Total amount of guarantee
923831.18
being performed
Note to related guarantees
The above-mentioned guarantees are all associated guarantees within interested entities of the Company.
(4) Remuneration of key management
In RMB
Item Amount occurred in the current period Occurred in previous period
Remuneration of directors supervisors
5313183.004799048.45
and senior management
6. Receivable and payables due with related parties
(1) Receivable interest
In RMB
Closing balance Opening balance
Project name Affiliated party Remaining book Bad debt Remaining
Bad debt provision
value provision book value
Account
Qijian Technology 4763.36 47.63
receivable
Ganshang Joint
Other receivables 3791089.25 56487.23 3791089.25 56487.23
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
Project name Affiliated party Closing balance of book value
value
Shenzhen Yikang Real Estate
Other payables 26149417.56 26102009.60
Co. Ltd.Other payables Qijian Technology 400.00
144Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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 2024 Fangda Real Estate
has paid a deposit of RMB20 million and a transitional compensation of RMB4.5 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 2024 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
RMB79362900 of other related payments.The Company has no other commitments that should be disclosed by June 30 2024.
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
* On June 19 2019 Langfang Aomei Jiye Real Estate Development Co. Ltd. filed a lawsuit against
Fangda Jianke in the People's Court of Langfang Development Zone demanding compensation of
RMB19721315.00 and filed an application for appraisal of quality repair cost and uncompleted project cost;
Fangda Jianke filed a counterclaim on September 11 2019 demanding payment of RMB13939863.27 and put
forward the application for completed project cost appraisal. As of the disclosure date of this report the case is
still under trial.* In March 2022 Xiangheng Real Estate (Jinan) Co. Ltd. filed an arbitration with the Jinan Arbitration
Commission requesting Fangda Jianke to bear the deduction maintenance rectification and rework costs of
RMB8956563.81 and lawyer's fees of RMB350000.00 caused by the quality problems of the supply and
installation of aluminum alloy doors and windows louvers and curtain walls of Jinan Kerry comprehensive
development project (phase I and II); In April 2022 Fangda Construction Technology Co. Ltd. filed an anti
arbitration application requiring Xiangheng Real Estate (Jinan) Co. Ltd. to pay a total of RMB18062462.28
for the project funds and project expenses. As of the disclosure date of this report the two cases are under joint
trial.* 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
145Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
funds of Longguang Jiuzuan Project Plot 05 and Plot 09 to Fangda Construction Technology Co. Ltd. totaling
RMB33197543.00. As of the date of this report's disclosure the Jiuzuan 05 Plot project case has issued first
and second instance judgments: The first instance judgment ordered Longguang Company to pay Fangda Jianke
RMB7709679.55 for the project payment RMB6033911.38 for the quality guarantee deposit and the
corresponding interest and to have the priority to be compensated for the proceeds from the sale and auction of
the curtain wall production and installation project of this project; the second instance judgment upheld the
judgment items of the first instance project payment quality guarantee deposit corresponding interest and
priority to be compensated and modified the judgment that the owner of Longguang Jiuzuan Project 05 Plot
Shenzhen Longguang Junjing Real Estate Development Co. Ltd. shall bear joint and several liability for
Fangda Jianke. Fangda Jianke has applied for compulsory execution. As of the date of this report the case of
the Jiuzhuan 09 plot project has been adjudicated in first instance with Longguang Company being sentenced
to pay the engineering fee of RMB7709679.55 the quality assurance deposit of RMB6033911.38 and
corresponding interest to Fangda Jianke. Longguang Company has the priority right to be compensated for the
sale and auction price of the curtain wall production and installation project of the project; Due to both parties
filing appeals it is currently in the second instance.* In August 2023 Fangda Jianke filed a lawsuit with the Chengguan District People's Court of Lanzhou
City requesting Lanzhou Xinhe Real Estate Co. Ltd. to pay Fangda Jianke the principal and interest of the
project payment for the Lanzhou East Lake project totaling RMB5374850.03 and claiming the priority of
compensation for the construction project price. In January 2024 after the warranty period of the project in
question expired an additional warranty deposit of RMB1788589.6 was added. In September 2023 Lanzhou
Xinhe Real Estate Co. Ltd. filed a counterclaim requesting Fangda Jianke to pay a liquidated damages for
delay in completion of RMB5670000.00. As of the date of this report's disclosure the first instance court has
made a judgment ruling that Lanzhou Xinhe Real Estate Co. Ltd. shall pay Fangda Jianke RMB6477148.2
for the project payment and interest and dismissing all counterclaims of Lanzhou Xinhe Real Estate Co. Ltd.Currently both parties have appealed and the case is in the second instance.* In November 2023 Fangda Jianke filed a lawsuit with the Bao'an District People's Court of Shenzhen
City requesting Shenzhen Zhongyi Fuhua Co. Ltd. to pay the principal and interest of the project payment for
the Zhongyi Smart Building project totaling RMB8657880.49 and claiming the priority of compensation for
the project price. The first instance judgment ordered Shenzhen Zhongyi Fuhua Co. Ltd. to pay Fangda Jianke
RMB8507859.49 for the project payment and interest and supported the priority of compensation for the
project payment. Shenzhen Zhongyi Fuhua Co. Ltd. refused to accept the first instance judgment and appealed.As of the date of this report's disclosure the two parties have reached a civil mediation agreement on the second
instance and are in the process of fulfilling it.* In November 2023 Fangda Jianke filed a lawsuit with the People's Court of Honggutan District
Nanchang City demanding that Jiangxi Huilian Real Estate Co. Ltd. and Jiangxi Boneng Industrial Group Co.Ltd. pay the project payment and interest of the Nanchang Shanglian Center project totaling
RMB45309399.07 and claiming the priority of compensation for the project price. The first instance judgment
ordered Jiangxi Huilian Real Estate Co. Ltd. to pay Fangda Jianke RMB38800206.53 and interest and ruled
that Jiangxi Boneng Industrial Group Co. Ltd. shall bear joint and several liability for RMB37563144.42 of
the project payment and interest. The request for accelerated maturity of the quality guarantee deposit and the
priority of compensation for the project payment was not supported. Fangda Jianke appealed and the second
instance judgment supported the priority of compensation. As of the date of this report's disclosure Fangda
Jianke has applied to the court for compulsory execution.
146Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
* In December 2023 Fangda Jianke filed a lawsuit with the People's Court of Yantian District
Shenzhen demanding that Shenzhen Chuangshihe Industrial Co. Ltd. pay Fangda Jianke the principal amount
of the Hejing Tongchuang project payment of RMB12018518.24 and overdue interest and claim the priority
right to recover the construction project price. As of the date of this report's disclosure the court has issued a
first-instance judgment ruling that Shenzhen Chuangshihe Industrial Co. Ltd. shall pay Fangda Jianke
RMB7961110.76 for the principal of the project payment and overdue interest and not supporting the request
for the priority of compensation for the project payment. Currently both parties have appealed and the case is in
the second instance.* In April 2024 Fangda Jianke filed a lawsuit with the People's Court of Panyu District Guangzhou City
demanding that Guangzhou Wanya Real Estate Co. Ltd. pay Fangda Jianke the principal of the curtain wall
project payment of RMB15015731.53 for Plot 6 of Guangzhou Vanke Expo Center and overdue interest and
claiming the priority of compensation for the construction project price. As of the date of this report's disclosure
the case has been filed and is awaiting trial.* In March 2024 Fangda Jianke filed a lawsuit with the People's Court of Nanshan District Shenzhen
City demanding that Shenzhen Hairunde Petrochemical Technology Co. Ltd. Shenzhen Hanjing Group Co.Ltd. Huang Jianwen and Wu Shaojie pay Fangda Jianke the principal and interest of the project payment for
the Hanjing Times project totaling RMB21989562.71 and claiming the priority of compensation for the
construction project price. As of the disclosure date of this report the court has filed and accepted the case and
is awaiting a hearing.* In March 2024 Fangda Jianke filed a lawsuit with the People's Court of Nanshan District Shenzhen
City demanding that Shenzhen Luolansibao Property Development Co. Ltd. Shenzhen Hanjing Group Co.Ltd. Huang Jianwen and Wu Shaojie pay Fangda Jianke the principal and interest of the project payment for
the Hanjing Finance project totaling RMB37136765.50 and claiming the priority of compensation for the
construction project price. As of the disclosure date of this report the court has filed and accepted the case and
is awaiting a hearing.* In May 2024 Fangda Jianke filed a lawsuit with the People's Court of Guangming
District Shenzhen City demanding that Shenzhen CIMC Low-Orbit Satellite Internet of Things
Industrial Park Development Co. Ltd. pay Fangda Jianke the principal and interest of the project
payment for the curtain wall project of the Satellite Internet of Things Industrial Building totaling
RMB10130636.22 and claiming the priority of compensation for the construction project price.As of the disclosure date of this report the court has filed and accepted the case and is awaiting a hearing.* In February 2024 Shenzhen Rijiasheng Trading Co. Ltd. (hereinafter referred to as
Rijiasheng Company) filed a lawsuit with the People's Court of Nanshan District Shenzhen City
demanding that Fangda Real Estate Company return the purchase price and liquidated damages of
Building 4 of Fangda City to Rijiasheng Company and compensate for the losses totaling
RMB21627925.22. As of the date of this report's disclosure the court has accepted the case and is waiting
for the trial and Fangda Real Estate Company has filed a counterclaim application.
(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.
147Interim Financial Statements 2024 of China Fangda Group 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 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 disclosure 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.
(3) Contingent liabilities formed by providing of guarantee to other companies' debts and their influences
on financial situation
By June 30 2024 the Company has provided loan guarantees for the following entities:
Amount (in
Name of guaranteed entity Guarantee Term
RMB10000)
Guarantee and mortgage
Fangda Property 66000.00 2020.03.13-2030.03.12
guarantee
Fangda Intelligent
Guarantee 25000.00 2024.03.15-2030.03.14
Manufacturing
Fangda Jianke Guarantee 30000.00 2024.06.26-2026.06.25
Fangda Jianke Guarantee 4000.00 2024.03.14-2025.03.14
Fangda Jianke Guarantee 5000.00 2024.03.28-2025.03.28
Fangda Jianke Guarantee 4000.00 2024.06.20-2025.06.15
Fangda Jianke Guarantee 20000.00 2023.08.04-2024.08.04
Fangda Jianke Guarantee 10500.00 2024.06.05-2025.03.05
Fangda Yunzhu Guarantee 1000.00 2024.06.28-2025.06.23
Fangda Jianke Guarantee 5000.00 2024.05.17-2025.05.16
Fangda Zhiyuan Technology Guarantee 1000.00 2023.09.20-2024.09.19
Fangda Zhiyuan Technology Guarantee 2000.00 2023.10.16-2024.10.16
Fangda Zhiyuan Technology Guarantee 2000.00 2024.06.21-2025.06.21
Fangda Zhiyuan Technology Guarantee 4000.00 2024.06.24-2025.06.24
Total 179500.00
Notes:
(1) All the above loan guarantees are related guarantees between internal equity entities of the Company.
148Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
(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 2024 the Company has
undertaken the above phased guarantee amount of RMB3.06 million.
3. Others
Status of non-revocation of company as at June 30 2024:
Guarantee balance (original
Currency Deposit (RMB) Credit line used (RMB)
currency)
CNY 904860392.54 5803897.96 899056494.58
INR 38164259.78 46099.32 3212327.02
HKD 22259665.45 15000000.00 6306329.89
USD 2628036.33 1463768.39 17265720.93
SGD 15697838.00 82868886.80
AUD 975000.00 4645875.00
EUR 4074964.01 31221151.76
Total 22313765.67 1044576785.98
XVI. 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 Group's
management regularly review the operating results of the reporting segments to determine
resource distribution and evaluate 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;
* Commercial real estate segment: development and operating of real estate on land of
which land use right is legally obtained by the Company; property management;
149Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
(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
Commercial
Item Curtain wall Rail transport New energy Others between Total
real estate
segments
173988207263455042.122693103.10903608.210481953.3213384558
Turnover 7393708.51
8.113892167.76
Including:
external 173775473 263455042. 118828634. 213384558
7061695.636745475.62
transaction 9.77 38 36 7.76
income
Inter-
segment 10481953.3
2127338.340.003864469.57332012.884158132.590.00
transaction 6
income
Including:
major 172038634 263135057. 122227950. 10903608.2 211553700
7393708.518509660.91
business 3.43 05 87 1 7.16
turnover
Operating 149920366 205971111. 30848836.6 173759918
3952479.2138387.332415295.85
cost 6.24 45 0 4.98
Including:
148651698205770477.30848836.6172471186
major 3952479.21 38387.33 2415295.85
1.207306.23
business cost
--
Operation 162677592. 36949430.3 40539994.4 261503163.
330025.6143229863.464235984.0
cost 52 7 2 56
59
Operating 78538412.8 20534500.5 51304272.9 54095084.3 72840235.1 134743239.
3111203.69
profit/(loss) 9 6 1 3 5 22
776133048102152428617567345180978061.382838047521127081137566159
Total assets
9.381.139.99927.882.3757.93
Total 530609527 703799713. 334640937 54068848.8 162400707 336500298 766937729
liabilities 1.92 00 7.11 3 3.03 5.95 7.94
(3) Others
Regional information on operating revenues:
In RMB
150Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Amount occurred in the current
Item period Occurred in previous period
In China 1955457106.44 1831339689.35
Out of China 178388481.32 247507187.97
Total 2133845587.76 2078846877.32
XVII. 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) 1084683.01 416495.45
Over 3 years 359129.89 359129.89
3-4 years 222666.00 359129.89
4-5 years 136463.89
Total 1443812.90 775625.34
(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
144381181095.126271775625.92032.8683592.
bad debt 100.00% 12.54% 100.00% 11.87%
2.90157.7534153
provisio
n is
made by
group
Includin
g:
Portfolio
144381181095.126271775625.92032.8683592.
3.100.00%12.54%100.00%11.87%
2.90157.7534153
Others
144381181095.126271775625.92032.8683592.
Total 100.00% 12.54% 100.00% 11.87%
2.90157.7534153
Category name for bad debt provision by combination: Others
In RMB
151Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Portfolio 3. Others 1443812.90 181095.15 12.54%
Total 1443812.90 181095.15
Group recognition basis:
See 10. Financial Tools in Chapter X 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
Opening
Type
balance Written-back
Closing balance
Provision Canceled Others
or recovered
Portfolio 3. Others 92032.81 89062.34 181095.15
Total 92032.81 89062.34 181095.15
(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
Top five summary 1378509.66 0.00 1378509.66 95.48% 180618.44
Total 1378509.66 0.00 1378509.66 95.48% 180618.44
2. Other receivables
In RMB
Item Closing balance Opening balance
Dividend receivable 62142383.24
Other receivables 1637032979.44 1684718397.92
Total 1699175362.68 1684718397.92
(1) Receivable dividend
1) Receivable dividend
In RMB
152Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Item (or invested entity) Closing balance Opening balance
Fangda Zhiyuan 62142383.24 0.00
Total 62142383.24 0.00
(2) Other receivables
1) Other receivables are disclosed by nature
In RMB
By nature Closing balance of book value Opening balance of book value
Deposit 80000.00
Others 65679.85 57199.41
Accounts between related parties within
1636968278.221684583242.78
the scope of consolidation
Total 1637033958.07 1684720442.19
(2) Account age
In RMB
Age Closing balance of book value Opening balance of book value
Within 1 year (inclusive) 300657920.73 692784064.86
1-2 years 390808980.00 92578310.00
2-3 years 393487692.40 694397404.79
Over 3 years 552079364.94 204960662.54
3-4 years 449639033.67 204960662.54
4-5 years 102440331.27
Over 5 years
Total 1637033958.07 1684720442.19
(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
163703163703168472168471
debts by 100.00% 978.63 0.00% 100.00% 2044.27 0.00%
3958.072979.440442.198397.92
combina
tion
Includin
g:
Portfolio
65679.864701.2137199.135155.
1: First 0.00% 978.63 1.49% 0.01% 2044.27 1.49%
524114
stage
Portfolio 163696 100.00% 0.00 0.00% 163696 168458 99.99% 0.00 0.00% 168458
153Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
4:8278.228278.223242.783242.78
related
party
funds
within
the
scope of
consolid
ation
163703163703168472168471
Total 100.00% 978.63 0.00% 100.00% 2044.27 0.00%
3958.072979.440442.198397.92
Category name for bad debt provision by combination: combination 1: First stage
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Portfolio 1: First stage 65679.85 978.63 1.49%
Total 65679.85 978.63
Group recognition basis:
Provision for bad debts based on general model of expected credit losses
Provision type for bad debts by portfolio: Portfolio 4: Amounts from related parties within the scope of consolidation
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Portfolio 4: related party funds within
1636968278.220.000.00%
the scope of consolidation
Total 1636968278.22 0.00
Group recognition basis:
A description of the basis for determining this combination is provided in Section X V. Significant Accounting Policies and
Accounting Estimates in 10 Financial Instruments.Provision for bad debts based on general model of expected credit losses
In RMB
First stage Second stage Third stage
Expected credit loss
Bad debt provision Expected credit loss for for the entire Expected credit losses Total
the entire duration (no duration (credit
in the next 12 months
credit impairment) impairment has
occurred)
Balance on January 1 2024 2044.27 2044.27
Balance on January 1 2024 in
the current period
Provision -1065.64 -1065.64
Balance on June 30 2024 978.63 978.63
Changes in book balances with significant changes in the current period
□ Applicable □ Inapplicable
154Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
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-back Closing balance
Provision Write-off Others
or recovered
Other receivables and
2044.27-1065.64978.63
bad debt provision
Total 2044.27 -1065.64 978.63
5) Balance of top 5 other receivables at the end of the period
In RMB
Balance of
bad debt
Entity By nature Closing balance Age Percentage (%) provision at
the end of
the period
Less than 1
300592240.88
Related party year
Shenzhen Fangda
funds within the 373808980.00 1-2 years
Property Development 86.93% 0.00
scope of 305288990.00 2-3 years
Co. Ltd.consolidation 356210434.73 3-4 years
87210434.73 4-5 years
Related party 17000000.00 1-2 years
Fangda (Jiangxi)
funds within the 88198702.40 2-3 years
Property Development 11.20% 0.00
scope of
Co. Ltd. 78198702.39 3-4 years
consolidation
Related party 15229896.55 3-4 years
Shihui International funds within the
1.86%0.00
Holding Co. Ltd. scope of 15229896.54 4-5 years
consolidation
Less than 1
Others Others 65679.85 0.01% 978.63
year
Total 1637033958.07 100.00% 978.63
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
1657062530.001657062530.001526831253.001526831253.00
subsidiaries
Total 1657062530.00 1657062530.00 1526831253.00 1526831253.00
155Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
(1) Investment in subsidiaries
In RMB
Change (+-) Balance of
Beginning
impairment
Invested Opening balance of Closing
entity book value impairment Increased Decreased Impairment
provision at
Others book value the end of
provisions investment investment provision
the period
Fangda 75195000 75195000
Jianke 0.00 0.00
Fangda
Jiangxi 74496600. 74496600.New 00 00
Material
Fangda 19800000 19800000
Property 0.00 0.00
Shihui
Internation 61653.00 61653.00
al
Fangda
99000000.99000000.
New
0000
Energy
Fangda
98000000.98000000.
Hongjun
0000
Investment
Fangda 23532300 23532300
0.00
Partnership 0.00 0.00
Fangda
Intelligent 70000000. 12800000 19800000
Manufactur 00 0.00 0.00
ing
Fangda 23755427 23755427
0.00
Zhiyuan 7.00 7.00
15268312365554272353230016570625
Total
53.007.000.0030.00
4. Operational revenue and costs
In RMB
Amount occurred in the current period Occurred in previous period
Item
Income Cost Income Cost
Main business 10908179.61 38387.33
Other businesses 12358317.34
Total 10908179.61 38387.33 12358317.34
Note: The operating income of the parent company all comes from the rental income of self-built and self-owned properties. This
period the rental income of its properties is adjusted to the main business income.Breakdown of operating revenues and operating costs:
In RMB
Others Total
Contract classification
Turnover Operating cost Turnover Operating cost
Business type
156Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
Including: Other businesses 10908179.61 38387.33 10908179.61 38387.33
Total 10908179.61 38387.33 10908179.61 38387.33
Information related to the transaction price allocated to the remaining performance obligations:
The amount of revenue corresponding to the performance obligations that have been signed but not yet performed or not yet
performed at the end of the reporting period is RMB82113615.12 of which RMB11043003.43 is expected to be recognized in
the second half of 2024 and RMB19501650.81 is expected to be recognized in 2025 RMB51568960.88 is expected to be
recognized in 2026 and beyond.
5. Investment income
In RMB
Item Amount occurred in the current period Occurred in previous period
Gains from long-term equity investment
62142383.24
measured by costs
Investment gain obtained from disposal
47167.38
of long-term equity investment
Total 62189550.62
XVIII. Supplementary Materials
1. Detailed accidental gain/loss
□ Applicable □ Inapplicable
In RMB
Item Amount Notes
Gain/loss of non-current assets -1490.22
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 and in 7230976.70
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
-888100.88
the disposal of financial assets and liabilities except for effective
hedging operations related to the Company's normal business operations
Gain/loss from change of fair value of investment property measured at
555662.75
fair value in follow-up measurement
Other non-business income and expenditures other than the above -356942.93
Less: Influenced amount of income tax 1469609.41
Influenced amount of minority shareholders' equity (after-tax) -35516.22
Total 5106012.23 --
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
157Interim Financial Statements 2024 of China Fangda Group Co. Ltd.
2. Net income on asset ratio and earning per share
Earning per share
Weighted average net
Profit of the report period
income/asset ratio Basic earnings per share Diluted Earnings per share
(yuan/share) (yuan/share)
Net profit attributable to common
1.95%0.110.11
shareholders of the Company
Net profit attributable to the
common owners of the PLC after
1.86%0.100.10
deducting of 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
(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
No
158
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