Annual Report 2025 of China Fangda Group Co. Ltd.China Fangda Group Co. Ltd.2025 Annual Report
April 2026
1Annual Report 2025 of China Fangda Group Co. Ltd.
2025 Annual Report
Chapter 1 Important Statement Table of Contents and
Definitions
The Board of Directors individual directors and senior
management of the Company hereby affirm that the content of this
annual report is true accurate and complete and that there are
no false records misleading statements or material omissions.They assume individual and joint legal liability accordingly.Mr. Xiong Jianming the Company's principal officer; Mr. Lin
Kebin the officer in charge of accounting affairs; and Ms. Wang
Huan head of the accounting department (chief accounting officer)
declare that they guarantee the truthfulness accuracy and
completeness of the financial statements included in this annual
report.All the Directors have attended the meeting of the board
meeting at which this report was examined.This annual report contains forward-looking statements
regarding future plans and expectations. Such statements do not
constitute substantive commitments by the Company to investors.Investors and other interested parties should fully recognize the
associated risks and understand the distinctions among plans
forecasts and actual commitments.
2Annual Report 2025 of China Fangda Group Co. Ltd.
The company has described the existing market risks
management risks and production and operation risks in this report.Please refer to the risks that may be faced mentioned in"11.Prospects for the Company's Future Development" in III Management
Discussion and Analysis.For the year 2025 the Company's consolidated financial
statements reported a net loss attributable to shareholders of the
listed company. Pursuant to the Articles of Association the
Company did not meet the conditions for cash dividend distribution
in 2025. Accordingly the Company will not distribute cash
dividends issue bonus shares or convert capital reserves into
share capital for 2025.
3Annual Report 2025 of China Fangda Group Co. Ltd.
Contents
第一节重要提示、目录和释义.........................................2
第二节公司简介和主要财务指标........................................8
第三节管理层讨论与分析..........................................13
第四节公司治理、环境和社会........................................62
第五节重要事项..............................................79
第六节股份变动及股东情况.........................................92
第七节债券相关情况............................................99
第八节财务报告.............................................100
4Annual Report 2025 of China Fangda Group Co. Ltd.
5Annual Report 2025 of China Fangda Group Co. Ltd.
Reference
1. Financial statements stamped and signed by the legal representative CFO and accounting manager;
2. Original copy of the Auditors' Report under the seal of the CPA and signed by and under the seal
of certified accountants;
3. Originals of all documents and manuscripts of Public Notices of the Company disclosed in public.
6Annual Report 2025 of China Fangda Group Co. Ltd.
Definitions
Terms Refers to Description
Fangda Group company the
Refers to China Fangda Group Co. Ltd.Company
Articles of Association of China
Articles of Association Refers to
Fangda Group Co. Ltd.the General Meeting of
Meeting of shareholders Refers to Shareholders of China Fangda
Group Co. Ltd.Board of Directors of China
Board of Directors Refers to
Fangda Group Co. Ltd.Supervisory Committee of China
Supervisory Committee Refers to
Fangda Group Co. Ltd.Shenzhen Banglin Technologies
Banglin Technology Refers to
Development Co. Ltd.Shengjiu Co. Refers to Shengjiu Investment Ltd.Shenzhen Fangda Jianke Group Co.Fangda Jianke Refers to
Ltd.Fangda Zhichuang Technology Co.Fangda Zhiyuan Refers to
Ltd.Fangda New Materials (Jiangxi)
Fangda Jiangxi New Material Refers to
Co. Ltd.Shenzhen Fangda New Energy Co.Fangda New Resource Refers to
Ltd.Shenzhen Fangda Property
Fangda Property Refers to
Development Co. Ltd.Chengdu Fangda Construction
Fangda Chengdu Technology Refers to
Technology Co. Ltd.Dongguan Fangda New Material Co.Fangda Dongguan New Material Refers to
Ltd.Shenzhen Qianhai Kechuangyuan
Kechuangyuan Software Refers to
Software Co. Ltd.Shenzhen Fangda Property
Fangda Property Refers to
Management Co. Ltd.Fangda (Jiangxi) Property
Fangda Jiangxi Property Refers to
Development Co. Ltd.Shenzhen Fangda Investment
Fangda Investment Holding Refers to
Holding Co. Ltd.Shenzhen Fangda Yunzhu Technology
Fangda Yunzhu Refers to
Co. Ltd.Shanghai Fangda Zhijian
Fangda Zhijian Refers to
Technology Co. Ltd
Jiangxi Fangda Intelligent
Fangda Intelligent Manufacturing Refers to Manufacturing Technology Co.Ltd.SZSE Refers to Shenzhen Stock Exchange
7Annual Report 2025 of China Fangda Group Co. Ltd.
Chapter II About the Company and Financial Highlights
1. Company profiles
Stock ID Fangda Group Fangda B Stock code 000055 200055
Modified stock ID (if
None
any)
Stock Exchange Shenzhen Stock Exchange
Chinese name China Fangda Group Co. Ltd.Chinese abbreviation Fangda Group
English name (if any) CHINA FANGDA GROUP CO.LTD.English abbreviation (if
CFGC
any)
Legal representative Xiong Jianming
20th Floor Fangda Building No. 011 Keji South 12th Road Gaoxin Community
Registered address
Yuehai Street Nanshan District Shenzhen
Zip code 518057
Changes in the Company's
None
registered address
39th Floor Building T1 Fangda Town No.2 Longzhu 4th Road Nanshan
Office address
District Shenzhen
Zip code 518055
Website http://www.fangda.com
Email fd@fangda.com
2. Contacts and liaisons
Secretary of the Board Representative of Stock Affairs
Name Ye Zhiqing Guo Lingchen
39th Floor Building T1 Fangda 39th Floor Building T1 Fangda
Address Town No.2 Longzhu 4th Road Town No.2 Longzhu 4th Road
Nanshan District Shenzhen Nanshan District Shenzhen
Telephone 86(755) 26788571 ext. 6622 86(755) 26788571 ext. 6622
Fax 86(755)26788353 86(755)26788353
Email zqb@fangda.com zqb@fangda.com
3. Information disclosure and inquiring
Website of the stock exchange where the company
Shenzhen Stock Exchange http://www.szse.cn
discloses its annual report
China Securities Journal Security Times Shanghai
Names and websites of the media where the Company
Securities Daily Securities Daily Hong Kong
discloses its annual report
Commercial Daily and www.cninfo.com.cn
39th Floor Building T1 Fangda Town No.2 Longzhu
Place for information inquiry
4th Road Nanshan District Shenzhen
8Annual Report 2025 of China Fangda Group Co. Ltd.
4. Registration changes
Unified Social Credit Code 91440300192448589C
Changes in main businesses since the listing of the
Remained substantially unchanged
Company
Changes in the controlling shareholders (if any) None
5. Other information
Public accountants employed by the Company
Public accountants RSM Thornton (limited liability partnership)
901-22 to 901-26 Foreign Trade Building No.22
Address Fuchengmenwai Street Xicheng District Beijing
China
Signing accountant names Zhou Junchao Yang Yang
Sponsor engaged by the Company to perform continued supervision and guide during the reporting period
□ Applicable □ Inapplicable
Financial advisor engaged by the Company to perform continued supervision and guide during the reporting
period
□ Applicable □ Inapplicable
6. Financial Highlight
Whether the Company needs to make retroactive adjustment or restatement of financial data of previous
years
□ Yes □ No
Increase/decrea
202520242023
se
Turnover (yuan) 3377303066.44 4424224197.71 -23.66% 4292204716.01
Net profit attributable
to shareholders of the -515466884.24 144813705.53 -455.95% 272758249.50
listed company (yuan)
Net profit attributable
to the shareholders of
the listed company and
-295072848.19159778410.13-284.68%272138072.87
after deducting of non-
recurring gain/loss
(yuan)
Net cash flow generated
by business operation 187412899.87 270894093.43 -30.82% 299742202.08
(yuan)
Basic earnings per share
-0.480.13-469.23%0.25
(yuan/share)
Diluted Earnings per
-0.480.13-469.23%0.25
share (yuan/share)
Weighted average net
-8.75%2.41%-11.16%4.67%
income/asset ratio
9Annual Report 2025 of China Fangda Group Co. Ltd.
Increase/decrea
End of 2025 End of 2024 se from the end End of 2023
of last year
Total asset (yuan) 12575400067.75 13555387225.21 -7.23% 13376351856.86
Net profit attributable
to the shareholders of 5559285130.74 6125803906.35 -9.25% 5960140567.07
the listed company (RMB)
The Company's net profit before and after non-recurring gains and losses was negative for the last three
fiscal years and the latest audit report showed uncertainty about the Company's ability to continue
operating
□ Yes □ No
The lowest of the Company's audited profit before tax net profit and net profit after deducting non-
recurring gains and losses for the reporting period was negative.□ Yes □ No
Item 2025 2024 Remarks
Turnover (yuan) 3377303066.44 4424224197.71
Revenue from operations
unrelated to the 49354482.92 51104762.96
principal business
Deduction items
primarily include scrap
Amount deducted from sales and property sales
49354482.9251104762.96
operating revenue (RMB) revenue from non-
commercial real estate
operations etc.Amount after deducting
scrap sales and property
Operating revenue after sales revenue from non-
3327948583.524373119434.75
deductions (RMB) commercial real estate
operations among
others.
7. Differences in accounting data under domestic and foreign accounting
standards
1. Differences in net profits and assets in financial statements disclosed according to
the international and Chinese account standards
□ Applicable □ Inapplicable
There is no difference in net profits and assets in financial statements disclosed according to the
international and Chinese account standards during the report period.
2. Differences in net profits and assets in financial statements disclosed according to
the overseas and Chinese account standards
□ Applicable □ Inapplicable
There is no difference in net profits and assets in financial statements disclosed according to the
international and Chinese account standards during the report period.
10Annual Report 2025 of China Fangda Group Co. Ltd.
8. Financial highlights by quarters
In RMB
Q1 Q2 Q3 Q4
Turnover 754337708.14 843948741.90 961013772.34 818002844.06
Net profit
attributable to the
33026526.97-15736928.74-1399267.06-531357215.41
shareholders of the
listed company
Net profit
attributable to the
shareholders of the
listed company and 31047346.67 -16663850.34 -3156820.28 -306299524.24
after deducting of
non-recurring
gain/loss
Cash flow generated
by business -306125952.98 39778725.13 72086305.98 381673821.74
operations net
Where there is difference between the above-mentioned financial data or sum and related financial data in
quarter report and interim report disclosed by the Company
□ Yes □ No
9. Accidental gain/loss item and amount
□ Applicable □ Inapplicable
In RMB
Item 2025 2024 2023 Notes
Non-current asset disposal
gain/loss (including the
write-off part for which -3032277.77 -1101723.90 381572.12
assets impairment provision is
made)
Government grants recognized
in the current period's profit
or loss (except for government
grants that are closely
related to the Company's
normal business operations in 7081782.93 12652732.81 8781578.52
line with national policies
and in accordance with defined
criteria and have a
continuous impact on the
Company's profit or loss)
Gains and losses from changes
in the fair value of financial
assets and liabilities held by
non-financial corporations and 1491525.97 -1663158.03 509477.49
gains and losses from the
disposal of financial assets
and liabilities except for
11Annual Report 2025 of China Fangda Group Co. Ltd.
effective hedging operations
related to the Company's
normal business operations
Capital using expense charged
to non-financial enterprises
3790999.98
and accounted into the current
income account
Write-back of impairment
provision of receivables for
13228201.06
which impairment test is
performed individually
Gain/loss from debt
-118701.78
reorganization
One-time expenses incurred by
the enterprise due to the
discontinuation of related
-1145361.48-10301966.12
business activities such as
expenditures for employee
placement.Gain/loss from change of fair
value of investment property
-280731968.67-18397296.67-28482701.26
measured at fair value in
follow-up measurement
Other non-business income and
expenditures other than the -17778105.99 87650.88 1262814.78
above
Less: Influenced amount of
-73720330.38-3890432.45-1262507.89
income tax
Impact on minority
-38.5812674.24114273.95
interests (after tax)
Total -220394036.05 -14964704.60 620176.63 --
Other gain/loss items satisfying the definition of non-recurring gain/loss account:
□ Applicable □ Inapplicable
The Company has no other gain/loss items satisfying the definition of non-recurring gain/loss account
Circumstance that should be defined as recurrent profit and loss to Explanation Announcement of
Information Disclosure No. 1 - Non-recurring gain/loss
□ Applicable □ Inapplicable
The Company has no circumstance that should be defined as recurrent profit and loss to Explanation
Announcement of Information Disclosure No. 1 - Non-recurring gain/loss
12Annual Report 2025 of China Fangda Group Co. Ltd.
Chapter III Management Discussion and Analysis
1. Major businesses of the Company during the report period
China Fangda Group Co. Ltd. was founded in Shenzhen in 1991 with businesses spanning intelligent
platform screen door systems for rail transit high-end smart curtain wall systems and materials new
energy and commercial services. In terms of core business competitiveness the Company's intelligent
platform screen door systems for rail transit and smart curtain wall systems are both industry-leading.Notably its urban rail transit platform screen door system has been awarded the title of "Manufacturing
Single-Product Champion" by China's Ministry of Industry and Information Technology. The Company owns seven
national high-tech enterprises six "Specialized Sophisticated Distinctive and Innovative" (SSDI)
enterprises two "National Intellectual Property Advantage Enterprises" one "National Quality Leader
Enterprise" and two provincial-level engineering technology research centers.During the reporting period the Company closely followed its annual theme of "Digital Intelligence
Empowerment and Scientific Management" achieving notable progress in innovation-driven development
overseas market expansion and operational risk control. Adhering to an innovation-driven strategy the
Company actively promotes deep integration of artificial intelligence (AI) technologies across all business
segments embeds risk management throughout the entire production and operation process and rigorously
manages operating cash flow to effectively safeguard operational security. While solidifying its
competitive edge in the domestic market the Company has expanded its global footprint through high-quality
products and superior services demonstrating strong resilience and growth potential across all business
segments. For the full year the Company reported operating revenue of RMB3377303100 net operating cash
flow of RMB187412900 newly signed overseas orders accounting for 27.06% of total new orders and an end-
of-period order backlog of RMB6610286300 including RMB2536530100 in overseas orders an increase of
12.31% year-on-year. China Fangda Group Co. Ltd. maintained a solid operational stance amid a complex
environment through robust cash flow management and a continuously optimized order portfolio laying a
strong foundation for transformation upgrading and sustainable development.(I) Intelligent Platform Screen Door Systems for Rail Transit
1. Empowered by Artificial Intelligence (AI) Technology Pioneering a New Growth Frontier in the
Industry
The Company adheres to an innovation-driven strategy to cultivate new-quality productive forces. During
the reporting period the Company became the first in the industry to enter the "uncharted territory" of
intelligent safety protection systems for high-speed rail platforms. Leveraging artificial intelligence (AI)
technology it successfully developed the world's first fully sliding door system for high-speed rail
platforms achieving a major breakthrough in a critical domain. The system commenced successful operation
at Shenzhen Futian High-Speed Railway Station in October 2025. This milestone not only opened a completely
new business frontier for the Company but also established a powerful engine for its high-quality growth.This system integrates AI-powered multimodal fusion technology delivering three world-first achievements:
the first platform screen door system compatible with all train models; the first capable of deployment
13Annual Report 2025 of China Fangda Group Co. Ltd.
along varying platform edge configurations for adjacent high-speed rail tracks; and the first to obtain
CRCC certification for high-speed rail platform doors. By harnessing AI technology and leveraging its end-
to-end in-house capabilities—from independent R&D and manufacturing to service delivery—the Company
effectively addresses long-standing industry challenges related to compatibility and precise alignment of
existing high-speed rail platform doors. It provides customers with smarter more efficient energy-saving
environmentally friendly and safer rail transit equipment along with comprehensive lifecycle system
solutions.The Company's independently developed CBMS intelligent operation and maintenance system (including both
web and mobile applications) has been fully deployed in MTR Corporation's Project 1254 in Hong Kong and is
stably operating in a public cloud environment receiving positive feedback on both system reliability and
user experience. Through AI-driven technological innovation the Company has reached a new height in its
innovation capability and is now leading the global race in this sector.Focusing on critical reliability bottlenecks during product operation the Company successfully
overcame multiple core technical challenges in the industry including voltage drop in safety circuits
connector durability and switch contact stability. Through in-depth analysis and validation of
representative issues the Company has developed reusable standardized technical solutions and
systematically integrated them into the R&D and manufacturing processes of new projects—marking a
strategic leap from "solving individual cases" to "building a systematic framework." This advancement has
significantly enhanced product reliability and operational stability further strengthening the Company's
technological moat in the field of intelligent platform screen doors for rail transit and providing a
solid foundation to consistently meet the demanding requirements of high-safety high-availability
application scenarios.In the field of retrofitting existing rail transit platform screen door systems and safety control the
Company has successfully developed rapid iteration and integration solutions for legacy systems from other
manufacturers on older lines. The development of a SIL4-certified platform screen door control system has
achieved a breakthrough laying a solid technical foundation for retrofitting both domestic and
international rail transit lines.The Company has been deeply involved in the formulation of national and industry standards. It served
as the lead editor for the first national standard in the urban rail transit platform screen door sector—
"Platform Screen Door Systems for Urban Rail Transit" (GB/T 46749-2025)—and the first industry standard—
"Platform Screen Doors for Urban Rail Transit" (CJ/T 236-2022). It also participated in drafting "Technical
Specification for Platform Screen Door Systems of Urban Rail Transit" "Technical Guidelines for Smart
Station Construction in Rail Transit" "Technical Specification for Intelligent Foreign Object Detection
Systems Between Platform Screen Doors and Train Doors in Urban Rail Transit" "Acceptance Specification for
Fully Automated Operation Systems in Urban Rail Transit" and "Technical Specification for Platform Door
Systems of High-Speed Railways." Through these standardization efforts the Company has further
consolidated its leading position in the industry promoted standardized and regulated development of the
rail transit platform screen door sector and provided Chinese technical standards to support technology
adaptation for projects along the "Belt and Road" routes.
14Annual Report 2025 of China Fangda Group Co. Ltd.
The Company adheres to sustained investment in R&D and innovation. As of now the Company holds 315
patents (including 70 invention patents) for its intelligent urban rail transit platform screen door
systems in China and overseas 22 international PCT patents and 15 software copyrights forming a core
technology cluster and a comprehensive intellectual property system with full independent ownership.
2. Deepening Overseas Market Penetration and Achieving Dual Improvement in Scale and Quality of Global
Layout
For many years the Company has continuously expanded into overseas rail transit markets establishing
a market development pattern that fosters mutual reinforcement between domestic and international dual
circulation. During the reporting period the Company achieved historic breakthroughs in both order
acquisition and project execution across domestic and overseas markets. In the domestic market the Company
focused on core urban agglomerations—including the Guangdong-Hong Kong-Macao Greater Bay Area the Yangtze
River Delta and the Beijing-Tianjin-Hebei region—as well as key cities in central and western China
actively supporting the networked development of urban rail transit systems. It successfully delivered
seven major domestic projects to high standards including Dongguan Metro Line 1 and Shenzhen Metro Line 16
Phase II. Internationally it completed the landmark Mumbai Metro Line 3 project in India achieving
commercial operation for a total of eight projects worldwide—four domestically and four overseas. Among
these the opening of Dongguan Metro Line 1 propelled the Greater Bay Area into a new era of grid-based
rail transit operations; Shenzhen Metro Line 8 Phase III realized "subway connectivity in every district"
across Shenzhen; and the newly opened section of Nanning Metro Line 4 marked the first-ever metro service
in Yongning District.Meanwhile Mumbai Metro Line 3—the first fully underground metro line in India—has fundamentally
transformed local public transportation patterns demonstrating the Company's strong capability in high-
quality project delivery. In terms of market expansion in 2025 the Company successfully won bids for key
domestic projects such as Shenzhen Metro Line 13 Phase II and Shijiazhuang Metro Line 4 Phase I as well as
the Almaty Metro Line 1 project in Kazakhstan. Its order backlog reached RMB2301044700 with newly
signed overseas orders accounting for 46.46% of total orders in this business segment. The Company has
further deepened its presence in Southeast Asia Central Asia and South Asia while also expanding its
reach into emerging markets in Europe and South America writing a new chapter in its global market
development. By closely aligning with the development status of overseas rail transit markets the Company
provides customized technical solutions and product services establishing itself as a leading benchmark
for the internationalization of China's rail transit equipment technology.
3. Enhancing Integrated Technical Service Capabilities and Continuously Refining Full-Chain Industrial
Layout
The Company is accelerating its transformation from a rail transit platform screen door system
equipment manufacturer to a full-industry-chain service provider integrating "equipment manufacturing +
integrated technical services." During the reporting period the Company secured overseas projects
including long-term maintenance and servicing contracts for platform screen door systems in Hong Kong.Notably the 30-year long-term maintenance contract for half-height safety doors on Singapore's Jurong
Region Line and the 6-year maintenance contract for Hong Kong's East Rail Line mark significant
15Annual Report 2025 of China Fangda Group Co. Ltd.
breakthroughs in the Company's after-sales service capabilities in the rail transit platform screen door
sector ushering in a new chapter for integrated technical service offerings in the industry.In the area of technical retrofits for rail transit platform screen door systems the Company has
consistently remained at the forefront of the industry. In 2025 leveraging its proprietary "plug-and-play"
technology the Company won the contract to install half-height doors on Hong Kong's East Rail Line and
completed the project six months ahead of schedule earning the "Outstanding Collaboration Award" from MTR
Corporation Limited. This project has become a benchmark case exemplifying the integration of advanced
technology and high-quality service in the industry.The Company has established a full-industry-chain service system covering "R&D – manufacturing –
installation – maintenance" successfully upgrading its business model from product-only delivery to dual
output of "products + services" providing strong support for global market expansion. In terms of
industrial layout the Company closely aligns with overseas market demands and has further optimized its
global operations and maintenance center network by establishing a maintenance center in Hong Kong
significantly enhancing service efficiency for international clients. Domestically the Wuhan production
base commenced smooth operations during the reporting period.For the reporting period the Company's rail transit platform screen door business generated revenue of
RMB596770500 of which integrated technical service revenue amounted to RMB87850600 accounting for
14.72%. Newly signed orders for integrated technical services increased by 32.32% compared to the same
period of the prior year.
4. Deepening International Cooperation and Strengthening the Industrial Ecosystem in Overseas Markets
Using technical exchange as a bridge and win-win collaboration as the core principle the Company has
continuously deepened industry engagement and international cooperation both domestically and overseas. In
2025 it conducted more than 20 external technical exchanges with internationally renowned enterprises and
institutions—including Alstom headquarters (France) Land Transport Authority (LTA) headquarters
(Singapore) and Egypt's National Authority for Tunnels—as well as leading domestic entities such as
Shanghai Shentong Metro and Guangzhou Metro—significantly enhancing its global brand influence and
industry recognition. In its international collaborations the Company has actively integrated into the
industrial ecosystem of the Belt and Road Initiative. It signed a Memorandum of Understanding (MoU) on
"Localization of Platform Screen Door Systems" with Egypt's National Authority for Tunnels promoting
localized deployment and application of platform screen door technology in the region. Additionally the
Company jointly established the "Rail Transit Construction and Development Laboratory" with Ho Chi Minh
City University of Transport. This laboratory serves as a showcase for China's rail transit technology
exports supporting local talent development while achieving deep integration of technology and industry
thereby injecting Chinese expertise into the advancement of overseas rail transit markets.(II) Intelligent Curtain Wall Systems and New Materials
1. Focusing on a High-End Premium Strategy and Building Brand Foundation through Benchmark Projects
The Company adheres to an innovation-driven approach to develop new-quality productive forces focusing
on a high-end premium strategy and countering the industry's "involutionary" competition by delivering
high-quality products and superior services to clients. It precisely targets the high-end curtain wall
markets both domestically and internationally deepens engagement with premium client groups and key
16Annual Report 2025 of China Fangda Group Co. Ltd.
regions and secures major benchmark projects providing clients with end-to-end one-stop integrated
curtain wall solutions. This consistent delivery of high-quality projects reinforces its core competitive
advantage. During the reporting period the Company won bids for a series of high-quality benchmark
projects including the Medical School of The Chinese University of Hong Kong Shenzhen; Phase I (Emergency
Comprehensive Building) of the Shenzhen People's Hospital Expansion and Reconstruction Project; Shenzhen
Guoxing Core Tower; Zhuhai Yibos' R&D Operations and Intelligent Manufacturing Headquarters; JD Group
Shanghai Headquarters T1; and the podium building of China Merchants Shekou Tower in Shenzhen—further
demonstrating its strong competitiveness in the high-end market. In 2025 the Company's intelligent curtain
wall and new materials business generated revenue of RMB2569944700 with an order backlog at year-end
amounting to RMB4309241600 which is 1.68 times the segment's 2025 revenue. The robust order pipeline
provides solid support for sustained and stable business growth.Through exceptional engineering quality and professional service the Company has earned widespread
recognition and high praise from clients. During the reporting period the curtain wall projects for
Shenzhen China Electronics Tower and Qianhai Information Hub Tower in Shenzhen received the "Excellent"
rating in the Guangdong Provincial Evaluation of Building Decoration Engineering Quality. Qianhai Financial
Holdings Tower in Shenzhen was recognized among the "Top 10 Innovative Projects" in the curtain wall
industry. Projects including Tencent Digital Building ByteDance Houhai Center and Kingdee Cloud Tower in
Shenzhen were designated as "Shenzhen Standard" Demonstration Projects. Additionally Shenzhen Bay Cultural
Plaza The Seventh Affiliated Hospital of Sun Yat-sen University (Shenzhen) Futian Greater Bay Smart Plaza
China Merchants Shekou Tower OPPO Binhai Bay Intelligent Manufacturing Industrial Park and Ant Group
Global Headquarters Phase II all received high commendations from their respective clients. The successful
high-quality delivery of these benchmark projects and the strong market recognition they have garnered
fully reflect the Company's technical excellence and brand influence in the curtain wall engineering sector
laying a solid reputation foundation for continued high-quality business development.
2. Deepening the Globalization Strategy and Building New Growth Engines Overseas
Faced with dual pressures from slowing global economic growth and intensifying competition in China's
domestic curtain wall market the Company has firmly advanced its international transformation strategy.Through a globally diversified layout it effectively hedges against risks associated with reliance on a
single market. In 2025 overseas business achieved simultaneous growth in both volume and quality with
newly signed overseas orders increasing by 48.67% year-on-year. Breakthrough progress was made in key
regions—including Australia the Middle East South Asia and South America—establishing them as critical
drivers for the Company's high-quality industrial development.Australia as a core strategic market continues to be deeply cultivated resulting in a mature
operational framework centered on "two hubs—Melbourne and Sydney—with multi-point radiating coverage."
The Company has established long-term strategic partnerships with leading local contractors and top-tier
distributors and has successfully passed CodeMark certification audits further solidifying its brand
position in the region. During the reporting period the Company secured key projects in Sydney and
Brisbane fully implementing localized operations by establishing local project management and design teams.This approach enables efficient alignment with local technical standards and market regulations
significantly enhancing project execution efficiency and service quality.
17Annual Report 2025 of China Fangda Group Co. Ltd.
Emerging markets in the Middle East South Asia and South America have seen accelerated breakthroughs
across multiple fronts. In the Middle East the Company achieved the "Fangda Speed"—establishing a local
team securing projects and commencing implementation all within the same year. It forged deep
collaborations with renowned Dubai-based contractors and leading developers winning the curtain wall
contract for the landmark One River Point project in Dubai and signing an aluminum panel order for the
wind-responsive fa?ade project with DP World (Dubai Ports World). In South Asia Bangladesh serves as the
focal point with the Company successively winning bids for multiple premium curtain wall projects
including Forum Tower Pinnacle and Mirai of Nirman. In South America the Company successfully delivered
the curtain wall project for Bogotá Metro Station in Colombia where its ultra-large terracotta panel
unitized curtain wall technology received high praise from the client. Leveraging superior product quality
comprehensive service capabilities rapid adaptability to local regulatory requirements and customized
design expertise the Company precisely meets the differentiated demands of high-end projects earning
strong recognition from clients and laying a solid foundation for further expansion into emerging markets.Looking ahead the Company will continue to deepen its presence in overseas markets prioritize
breakthroughs in the high-end Middle Eastern market steadily expand its business footprint in Southeast
Asia and South America and continuously increase the share of overseas revenue. This strategic focus aims
to drive leapfrog growth in international operations and establish China Fangda Group Co. Ltd. as a global
leader in intelligent curtain wall systems.
3. Empowering Technological Innovation with Artificial Intelligence (AI) to Strengthen Core Industrial
Advantages
The Company consistently regards intelligent manufacturing and artificial intelligence (AI)
technologies as the core engines of industrial upgrading integrating technological innovation across key
areas including green energy efficiency prefabricated construction new material applications and complex
curtain wall systems. This approach has enabled the Company to establish end-to-end breakthrough
capabilities spanning R&D product iteration and engineering implementation.* Deep AI Integration Across the Entire Industrial Chain
The Company has comprehensively advanced its digital and intelligent manufacturing strategy. Its nine
self-developed information management systems—including the OA office system PMS project management
system and MES production management system—enable seamless information exchange and resource sharing
across daily operations and the entire curtain wall lifecycle.In engineering practice the Company has deeply integrated full-process BIM application 3D scanning
and reverse modeling to enhance the practical application of digital twin technology. By combining a BIM
parametric design platform with AI intelligent algorithms it has developed an integrated solution for
intelligent curtain wall construction drawing design and precise material cutting. Additionally leveraging
lightweight component models and QR code traceability technology the Company has established a
comprehensive digital curtain wall construction system that achieves end-to-end data connectivity across
design fabrication and construction. This system has been successfully applied to multiple landmark
projects featuring supertall structures and complex geometries including Shenzhen Bay Cultural Plaza and
Futian Smart Plaza.
18Annual Report 2025 of China Fangda Group Co. Ltd.
In production the Company partnered with Huawei Cloud to upgrade its manufacturing base's MES system
integrating core modules such as production planning and execution control. By fusing AI intelligent
algorithms it built an automated aluminum panel unfolding model linked with the MES system establishing a
digital control center for the entire aluminum panel processing workflow. This has realized digital process
upgrades and refined closed-loop management of the fabrication process. Furthermore the Company has
embedded AI technology into core processes like production scheduling and quality inspection. By combining
deep learning algorithms with high-precision visual recognition it is actively exploring scenario-based
applications for aluminum panel surface quality inspection effectively overcoming the limitations of
manual inspection and significantly enhancing production efficiency and quality control.In the field of intelligent operation and maintenance the Company has initiated technical
collaborations with multiple drone and robotics companies achieving successful commercial application at
the Shenzhen Greater Bay Area Fashion Headquarters Center project.Moreover the Company has independently developed and launched several professional curtain wall AI
agents covering diverse office scenarios such as intelligent image processing copywriting assistance
engineering document retrieval and full-cycle design management. These AI agents empower end-to-end
efficiency gains comprehensively driving the digital and intelligent transformation of curtain wall
engineering design and construction methodologies.* Accelerating the Market Transformation of Innovation Achievements
The Company actively responds to national policies on energy conservation and carbon reduction
focusing on key areas such as green energy efficiency prefabricated construction high-performance new
materials and premium curtain wall systems. Leveraging the platform advantages of the Guangdong Provincial
Prefabricated Building Curtain Wall Engineering Technology Research Center it continuously intensifies
technological R&D and product innovation significantly accelerating the commercialization of scientific
and technological achievements and breakthroughs in core technologies to precisely meet the diversified
high-quality application requirements of global clients.In product innovation the Company prioritizes the development of next-generation curtain wall systems
including the novel shading and energy-saving glass light-well curtain wall system AI-intelligent weather-
responsive motorized casement window system and ultra-high-weatherability titanium honeycomb panel system.Among these the AI-intelligent weather-responsive motorized casement window system—integrating AI
algorithms and smart sensing technology—has been successfully implemented at the Shenzhen Bay Coastal
Business Center project further expanding the application boundaries of intelligent curtain wall
technology. The Company's self-developed product series—including Fangda System Louvers Fangda Channel
Embedments and Fangda System Windows—have been widely applied in landmark buildings such as Guangzhou
Xiangjiang No.1 and Shenzhen Medical Academy empowering premium architectural quality through
technological innovation.Relying on China's first intelligent fully automated aluminum panel production line built independently
by the Company a major breakthrough in "Made in China" for intelligent aluminum panel manufacturing has
been achieved. New products including ultra-high-precision prefabricated double-curved aluminum panels and
high-performance ultra-weather-resistant copper-finish brushed aluminum panels have entered large-scale
mass production. Notably the copper-finish brushed aluminum panels—a pioneering achievement—have been
19Annual Report 2025 of China Fangda Group Co. Ltd.
successfully applied to the Xiong'an Headquarters Project of China Mineral Resources Group. Additionally
the Company's self-developed integrated corner-forming technology for stone-effect roller-coated aluminum
panels was implemented at scale for the first time in the Wuhan Business College project successfully
achieving domestic substitution for imported U.S. White Granite material thereby significantly enhancing
supply chain autonomy controllability and core competitiveness.In international market expansion the Company continuously launches customized products tailored to
regional market demands.In the Australian market the Company strictly adheres to the Australian Standard AS NZS 4284-2008
"Testing of building facades" independently developing an extra-large seismic-resistant GRC green energy-
efficient unitized curtain wall system. It has also completed critical performance validations—including
CWCT soft-body impact and hail resistance tests—for terracotta panels providing robust technical
assurance for the safe and reliable application of curtain wall systems. These technologies have already
been successfully deployed in projects in Melbourne and Ballarat. The Company has developed a series of
products compliant with Australian standards including the FD-WW115x70B green energy-efficient window-wall
system FD-CW145x90A green energy-efficient unitized curtain wall system high-performance double-layer
rain-resistant ventilation louvers and green energy-efficient sliding doors. These products have been
applied in projects in Melbourne Australia and Bangladesh continuously enhancing brand influence and
market recognition.In the South American market targeting rail transit and public building scenarios the Company has
specifically developed distinctive products such as extra-large energy-efficient window-wall systems
extra-large terracotta unitized curtain walls and ceramic-effect aluminum unitized curtain walls. It
efficiently delivered the curtain wall project for Bogotá Metro Station in Colombia leveraging mature
technical solutions to enter the high-end curtain wall market in South America.In the Middle Eastern market the Company has partnered with a local Dubai-based curtain wall systems
firm and the internationally renowned consultancy Inhabit to co-develop customized solutions—including a
novel energy-efficient framing system sand-resistant louver system and energy-efficient unitized curtain
wall skylight system—tailored to regional climatic conditions and project-specific requirements. These
innovations comprehensively address the challenges of high temperatures and sandstorms establishing a
solid foundation for market expansion in the Middle East through localized collaborative innovation.* Synergistic Industry-Academia-Research Collaboration
The Company steadfastly advances deep integration of industry academia and research actively
building a collaborative innovation ecosystem linking "universities–enterprises–industries." In R&D
talent development the Company regularly organizes innovation training sessions and technical exchange
activities for employees inviting industry experts to deliver lectures and provide guidance—broadening
staff horizons and enhancing innovative capabilities. The Company has established talent cultivation
cooperation frameworks with multiple universities including Jinan University and Guangdong Polytechnic
College to secure a steady pipeline of R&D personnel. During the reporting period the Company
successfully obtained approval to establish the "Shenzhen Postdoctoral Innovation Practice Base" creating
a powerful hub for attracting and nurturing high-end scientific research talent and driving curtain wall
technologies toward intelligent and green development. Leveraging this platform the Company continues to
20Annual Report 2025 of China Fangda Group Co. Ltd.
intensify R&D efforts on core key technologies. Its two independently developed innovations—the "Offset
Upper-Lower Curtain Wall Closure System" and the "Extra-Large High-Vanadium Cable-Supported Curtain Wall
Technology"—earned the Company inclusion in the 24th "Shenzhen Enterprise Innovation (China) Records"
highlighting its systematic and leading-edge technical capabilities in complex curtain wall engineering.The Company also actively contributes its accumulated technical expertise back to the broader industry.Its subsidiary Fangda Yunzhu participated in drafting the industry standard "Standard Test Methods for
Building Curtain Wall Engineering." This effort not only advances the upgrading of industry-wide quality
inspection systems but also continuously reinforces the Company's influence and authority in industry
standardization.
4. Enhancing the Ganzhou Base to Strengthen Foundations for Intelligent and Green Development
In 2025 the Ganzhou intelligent manufacturing base focused comprehensively on market expansion
technological innovation capacity upgrading management enhancement and green manufacturing—solidifying
the foundation for high-quality development and continuously strengthening its industrial carrying capacity
and core competitiveness.In terms of production capacity the base has commissioned a double-curved panel production line a
honeycomb panel processing line and a dedicated platform screen door production line. Both double-curved
aluminum panels and honeycomb panels now achieve stable large-scale production with full coverage across
all panel types strongly supporting the Company's competitive edge in the high-end complex-shaped aluminum
panel market and laying a solid capacity foundation for sustained core business growth.Regarding digital and intelligent empowerment the new MES platform has been fully launched enabling
dynamic real-time monitoring of the entire production process and precise cost accounting significantly
improving manufacturing operational efficiency. The CRM system has been successfully deployed and put into
use continuously enhancing sales management and data-driven capabilities. Moreover the industry's first
fully automated aluminum single-panel production line in China has achieved large-scale mass production
simultaneously elevating both production efficiency and product quality.On green manufacturing and certification systems the Ganzhou factory has been awarded multiple
recognitions: High-Tech Enterprise "Specialized Sophisticated Distinctive and Innovative" SME Jiangxi
Province Digital Transformation L6-Level Enterprise and Performance Grade B Enterprise among key
atmospheric-emission-intensive sectors in Jiangxi Province. Notably it is the only enterprise in Zhanggong
District Ganzhou City Jiangxi Province exempted from mandatory production halts or output restrictions
during heavy pollution weather emergency responses—providing robust assurance for uninterrupted production
and efficient order fulfillment. Additionally the base has successfully obtained Alstom supplier
qualification and ISO 3834-2 international welding system certification. It continues to maintain rigorous
compliance with ISO 9001 ISO 45001 ISO 14001 and Level-3 Work Safety Standardization management systems
empowering steady industrial growth through high-standard governance.
(3) New energy industry
New energy is one of the Company's key business segments. The Company actively responds to China's
national "Dual Carbon" strategy positioning new energy as a critical engine for green transformation and
sustainable development. Beyond operating its own distributed photovoltaic (PV) power stations the Company
focuses on developing Building-Integrated Photovoltaics (BIPV) solutions for clients. As one of China's
21Annual Report 2025 of China Fangda Group Co. Ltd.
earliest enterprises engaged in BIPV technology R&D and application the Company has established a full-
industry-chain service system covering design manufacturing integration and operation accumulating
significant technological leadership in the green energy sector.During the reporting period the Company successfully delivered BIPV distributed power stations for
projects including Shenzhen Luhu Center and Guangzhou KuGou Music Building. The photovoltaic power stations
cover an area of approximately 1400 square meters with an estimated average annual power generation of
about 230000 kWh—equivalent to saving 92 tons of standard coal and reducing CO? emissions by 230 tons
annually—offering a replicable technical pathway toward urban building carbon neutrality.The Company's self-owned PV power station projects in Pingxiang and Nanchang (Jiangxi Isuzu Automobile
parking lot) Jiangxi Province and Songshan Lake Base in Dongguan Guangdong Province continue to operate
reliably generating stable profits and cash flow. During the reporting period the Company fully utilized
the rooftop space of the Ganzhou factory to construct a distributed PV power station with an installed
capacity of 3200 kWp expected to generate approximately 3.52 million kWh annually. Operating under the
"self-generation for self-use surplus power to grid" model over 80% of the generated electricity is
consumed on-site during peak-load periods reducing external electricity purchases by about 2.82 million
kWh per year—saving approximately 1056 tons of standard coal and cutting CO? emissions by roughly 2800
tons annually. At the Shanghai factory a PV power station with an installed capacity of 806.4 kWp was
built on the facility rooftops projected to generate 887000 kWh annually and reduce CO? emissions by
approximately 696 tons each year.Looking ahead the Company will continue deepening its new energy industrial layout leveraging
technological innovation to expand PV application scenarios and driving deeper integration of green energy
with architecture and manufacturing—contributing Fangda's strength toward achieving China's "Dual Carbon"
goals.(IV) Commercial Management and Services
The Company's commercial management and property services are primarily located in Shenzhen and
Nanchang. Leveraging the geographical advantages of the Guangdong-Hong Kong-Macao Greater Bay Area and the
policy dividends from Jiangxi Province's "Strong Provincial Capital" strategy the Company continuously
enhances asset operation efficiency and service quality through a dual-driven approach of "precise
positioning + digital empowerment." In the Shenzhen market the Company fully capitalizes on the city's
concentration of innovation resources and headquarters economy advantages. Through innovative leasing
strategies and operational upgrades it consistently maintains occupancy and leasing rates above industry
averages. By the end of the reporting period the Fangda Town project achieved a sales decontamination rate
of 98.84% and a self-owned property occupancy rate of 71.34%. The Fangda Technology Building had an
occupancy rate of 82.21%. The Nanchang Fangda Center project is situated in the core area of Honggutan CBD
benefiting from steadily improving market expectations. As of the end of the reporting period its sales
absorption rate stood at 46.83% and the occupancy rate of self-held properties reached 88.87%.The Company is comprehensively advancing deep integration of "AI + Property Management" reshaping
service experiences and driving operational efficiency through digital means. In parking management the
Company completed the intelligent upgrade of the Fangda Building parking lot and optimized its online
payment system improving service efficiency by over 60%. In energy consumption management AI algorithms
22Annual Report 2025 of China Fangda Group Co. Ltd.
were introduced to optimize the operating strategy of the central air-conditioning system achieving a
comprehensive energy-saving rate of over 24%. The public-area lighting system now enables precise zonal and
time-based control effectively reducing operational energy consumption by approximately 20%. Regarding
commercial facility operations the Company has completed the intelligent retrofit of elevator advertising
displays enabling remote centralized content management and ultra-fast deployment—providing an efficient
platform for precision-targeted advertising. Going forward the Company will continue enhancing property
operational efficiency and customer service experience by leveraging integrated digital and intelligent
technologies.The special planning work for the Company's Henggang Dakang Urban Renewal Project in Shenzhen is
currently underway.
1. New land reserve projects
Total
Equity
land
Parcel or Interests considera
Land Land area Building Obtaining price
project Purpose 2 2 percentag tion (ten
location (m ) area (m ) method (ten
name e thousand
thousand
yuan)
yuan)
None
2. Total land reserve
2 Total building area Remaining building area
Project/region name Floor area (10000 m ) 2 2
(10000 m ) (10000 m )
None
3. Main production development status
Accum
Total Estim
Plann Area ulate
area ated
Devel ing compl d
Inter compl total
City/ Land Proje Start opmen Compl Land const eted total
ests eted inves
regio Item locat ct ing t etion area ructi in inves
perce 2 in tment
n ion form time progr rate (m ) on this tment
ntage this (in
ess area phase (in
2 2 phase RMB10
(m ) (m ) 2 RMB10
(m ) 000)
000)
Shenz Offic
hen No.2 e
Fangd May
Nansh Longz comme 100.0 100.0 3539 2124 2177 2585 2836
a th 1 100% 0
an hu 4 rcial 0% 0% 7.60 00.00 63.69 00 00
Town 2014
Distr Road compl
ict ex
No.15
16
Hongg
Ganji Offic
utan
Fangd ang e
New May
a North comme 100.0 100.0 1660 6643 6537 6700 6699
Distr 1 100% 0
Cente Avenu rcial 0% 0% 8.55 2.61 6.94 0 2.35
ict 2018
r e compl
Nanch
Fangd ex
ang
a
Cente
23Annual Report 2025 of China Fangda Group Co. Ltd.
r
4. Main project sales
Amoun
t of
pre- Settl
Pre- Settl
Cumul sale ement
sale ement
ative (sale Cumul amoun
(sale area
Inter Sella pre- s) in ative t in
City/ Land Proje Build s) in
ests ble sale the settl this
regio Item locat ct ing area the
perce area (sale curre ement perio
n ion form area 2 in curre
ntage (m ) s) nt area d
this 2 nt
area perio (m ) (RMB1
2 perio perio
(m ) 2 d 2 0000
d (m ) d (m )
(RMB1 )
0000
)
Shenz Offic
hen No.2 e
Fangd
Nansh Longz comme 100.0 2177 9308 9200 9200
a th 0 0 0 0
an hu 4 rcial 0% 63.69 6.25 2.95 2.95
Town
Distr Road compl
ict ex
No.15
16
Hongg Ganji
Offic
utan ang
Fangd e
New North
a comme 100.0 6537 2599 1217 989.3 684.9 1217 989.3 684.9
Distr Avenu
Cente rcial 0% 6.94 6.84 3.25 9 6 3.25 9 6
ict e
r compl
Nanch Fangd
ex
ang a
Cente
r
5. Main project lease
Cumulative
Land Interests Leasable Average
Item Project form 2 leased area
location percentage area (m ) 2 lease ratio
(m )
Shenzhen Commercial
Shenzhen
Nanshan and office 100.00% 92470.58 65969.31 71.34%
Fangda Town
District building
Shenzhen Shenzhen
Office
Fangda Nanshan 100.00% 20464.75 16823.34 82.21%
building
Building District
Jiangxi
Nanchang Nanchang Plant and
Science and Jiangxi office 100.00% 85472.88 36700.42 42.94%
Technology Province building
Park
Jiangxi
Nanchang Commercial
Nanchang
Jiangxi and office 100.00% 38165.36 33918.63 88.87%
Fangda
Province building
Center
6. First-level development of land
24Annual Report 2025 of China Fangda Group Co. Ltd.
□ Applicable □ Inapplicable
Financing source
Financing Maturity Structure (RMB10000)
Ending
cost range /
Financing financing
average
source balance (in Within 1
financing 1-2 years 2-3 years Over 3 years
RMB10000) year
cost
Annual
interest
Bank loan 108000.00 4000.00 4250.00 4500.00 95250.00
rate: 2.1%-
3.65%
Annual
interest
Total 108000.00 4000.00 4250.00 4500.00 95250.00
rate: 2.1%-
3.65%
7. Development strategy and operation plan in next year
The main tasks for the Company's future commercial management and service business are to increase the
occupancy rate of the Shenzhen Fangda Town project and to clear the remaining inventory while vigorously
promoting the sales of the Nanchang Fangda Center project. The Company aims to continuously enhance project
leasing operations and service levels deeply advancing digitalization in the property service sector
and actively exploring the application of new technologies like artificial intelligence in property
management. At the same time the Company will according to the latest policies integrate and optimize
existing resources to steadily advance the application and approval process for the urban renewal project
of the Shenzhen Henggang Dakan project.
8. Bank mortgage loan guarantee provided for commercial housing purchasers
□ Applicable □ Inapplicable
In accordance with business practices the Company's commercial management and service business
provides mortgage loan guarantees to purchasers of commercial housing with the type of guarantee being a
phased guarantee. The term of the periodic guarantee lasts from the effectiveness of guarantee contracts to
the completion of mortgage registration and transfer of housing ownership certificates to banks. As of
December 31 2025 the Company's outstanding amount for the above-mentioned phased guarantees was
RMB4890000.
9. Joint Investment by Directors Senior Management and the Listed Company (applicable where the
investment entity includes directors or senior management of the listed company)
□ Applicable □ Inapplicable
II. Core Competitiveness Analysis
(1) Rail Transit Platform Screen Door Equipment and Systems
1. Technical R&D advantage
China Fangda Group Co. Ltd. adheres to independent innovation was the first in China to break foreign
monopolies and has established a fully indigenous intellectual property-based technology system for rail
transit platform screen doors. Through years of practical application and continuous iteration the
25Annual Report 2025 of China Fangda Group Co. Ltd.
Company's technological R&D advantages have been further solidified. It has been recognized by the
Guangdong Provincial Department of Science and Technology as an "Guangdong Provincial Engineering
Technology Research Center" and maintains a professional experienced and internationally oriented
technical team. The Company has successively received honors including the "Guangdong Provincial Science
and Technology Award" and the "Shenzhen Science and Technology Progress Award." The Company served as the
lead editor for China's first national standard "Platform Screen Door Systems for Urban Rail Transit"
(GB/T 46749-2025) and the first industry standard "Platform Screen Doors for Urban Rail Transit" (CJ/T
236-2022). The Company successfully developed the world's first AI-powered fully sliding platform screen
door system overcoming compatibility challenges with existing high-speed rail platforms and achieving
three world-class breakthroughs—pioneering a new development path for high-speed rail platform doors. This
technology has been successfully implemented at Shenzhen Futian High-Speed Railway Station further
reinforcing the Company's comprehensive leadership in rail transit equipment. Fangda Zhiyuan (a subsidiary
of China Fangda Group Co. Ltd.) has been honored as a "National Intellectual Property Advantage
Enterprise" and a "Shenzhen Specialized Sophisticated Distinctive and Innovative Enterprise." Its urban
rail transit platform screen doors have been designated by China's Ministry of Industry and Information
Technology as a "Manufacturing Single Champion Product." The Company has also set multiple entries in the
"Shenzhen Enterprise Innovation (China) Records" fully demonstrating its industry leadership.
2. Industry chain advantage
As one of the earliest Chinese enterprises to enter the metro platform screen door sector the Company
offers end-to-end integrated capabilities across the entire value chain—including R&D and design
equipment manufacturing engineering services maintenance and spare parts supply. This vertically
integrated synergy enables resource sharing and efficient coordination across all business segments
allowing the Company to precisely meet diverse market demands for specialized products and services
effectively reduce production and management costs and continuously enhance profitability and overall
competitiveness.As China's urban rail transit network continues to expand metro platform screen door systems are
progressively entering their maintenance and service cycles. The Company has proactively positioned itself
in intelligent operations and maintenance (O&M) independently developing an intelligent maintenance
management system that provides real-time statistical analysis of equipment performance at stations and
delivers timely efficient technical support through remote guidance to on-site service teams. In business
model innovation the Company has achieved a major breakthrough: it secured Singapore's Jurong Region Line
semi-high safety door 30-year long-term maintenance contract and Hong Kong East Rail Line's 6-year
maintenance project—marking its successful transformation from an equipment supplier to a full-lifecycle
"product + service" provider. Currently the Company's O&M service teams operate in more than 30 cities
worldwide. With continuously enhanced service capabilities and growing client recognition technical
service revenue is expected to steadily increase injecting new momentum into the Company's high-quality
development.
3. Brand and Market Position Advantages
Having specialized in platform screen door systems for over 20 years the Company has earned extensive
acclaim and deep trust from clients worldwide thanks to the outstanding safety reliability availability
26Annual Report 2025 of China Fangda Group Co. Ltd.
and maintainability of its products—solidifying Fangda's status as an industry benchmark brand. During the
reporting period Fangda Zhiyuan successfully passed the re-evaluation for the national "Manufacturing
Single Champion" designation retained its position among the "Top 100 Shenzhen Industry Leader
Enterprises" for multiple consecutive years and was included in the "Greater Bay Area Corporate Innovation
Power List." It has also been awarded titles such as "Outstanding Equipment Supplier" "Outstanding
Contributor" and "Outstanding Maintenance Service Provider" by multiple metro operators. In the field of
rail transit platform screen door systems the Company collaborates with international firms including
Alstom Siemens and LG on global projects.As a pioneer in exporting China's high-end rail transit equipment the Company leverages deep technical
expertise and exceptional project execution capabilities to continuously expand its global footprint. By
the end of 2025 Fangda platform screen door systems had been deployed in over 40 cities worldwide serving
more than 120 rail transit lines. During the reporting period the Company successfully completed the
retrofit project of semi-high platform doors on Hong Kong's East Rail Line and received the "Outstanding
Collaboration Award" from MTR Corporation further strengthening its brand reputation in the Hong Kong
market. The Company has now secured multiple large-scale projects in Singapore Malaysia Hong Kong SAR
Taipei Thailand India Colombia Greece the Philippines Kazakhstan and other regions. Its product R&D
design capabilities on-time delivery and consistent quality have gained broad recognition from
international clients. This strong brand image and market visibility provide a solid foundation for the
Company's sustained competitive advantage and healthy growth.
4. Advantages of Adapting to Multinational Technical Standards
In its global strategic layout the Company has built a comprehensive multidimensional standards
database covering EN (European Norms) BS (British Standards) NFPA 130 (U.S. Standard for Fixed Guideway
Transit Systems) AAMA (American Architectural Manufacturers Association standards) Singapore BCA
(Building and Construction Authority) Colombian technical specifications and others. This enables a
closed-loop solution—from "standards pre-research → product development → accelerated certification"—
ensuring precise localization of technical parameters. In international market expansion the Company has
established strategic partnerships with global EPC giants such as Alstom Siemens and LG Electronics
forming a synergistic "market + technology" collaboration model to jointly participate in global platform
screen door projects. In the Philippines' North–South Commuter Railway (NSCR) project the Company
partnered with a Japanese firm on technical cooperation to co-develop a highly reliable screen door system.In the Almaty Metro Line 1 project in Kazakhstan the Company's platform door technical proposal and
product compliance standards received high client approval and the design contract has been successfully
delivered. This global standards adaptation capability has become a core competitive advantage in
international markets providing a robust technical passport for "Made in China" to go global.
5. Organizational structure advantage
With decades of deep expertise in rail transit platform screen doors the Company has established a
highly coordinated specialized organizational structure spanning the full product lifecycle—"R&D –
Design – Manufacturing – Testing – Installation – O&M." To precisely address the industry
characteristics of long project execution cycles and high customization requirements the Company has
assembled dedicated cross-functional teams: its R&D center can rapidly tackle unique customer technical
27Annual Report 2025 of China Fangda Group Co. Ltd.
demands; its design team possesses extensive experience in implementing complex engineering projects; its
large-scale manufacturing bases and stable reliable supply chain ensure high-quality product delivery; and
its professional testing equipment and comprehensive test methodologies guarantee product performance
reliability. In engineering implementation the Company holds Class-A Professional Contracting
Qualification for Building Mechanical & Electrical Installation enabling it to independently undertake
installation tasks. In O&M services it operates a centralized Operations & Maintenance Center and
supported by its global footprint has established multiple regional maintenance centers near client sites
to deliver faster and more responsive localized support.During the reporting period the Company further optimized and upgraded its organizational structure.The Wuhan production base commenced operations strengthening capacity deployment and delivery capabilities
in Central China. The Hong Kong Maintenance Center was officially established enhancing the global O&M
network and significantly improving response efficiency for overseas clients. Leveraging this increasingly
robust global service architecture the Company secured its first 30-year long-term maintenance contract
for Singapore's Jurong Region Line semi-high safety doors—achieving a strategic leap from "product
delivery" to "full-lifecycle service." This milestone fully validates the foresight and competitiveness of
the Company's organizational structure and service system.
(2) Intelligent Curtain Wall Systems and Materials
1. Technological Innovation Advantages
China Fangda Group Co. Ltd. adheres to an innovation-driven development strategy deeply integrating
artificial intelligence (AI) technologies to empower the transformation and upgrading of the traditional
curtain wall industry continuously reinforcing its technological leadership in the sector. As of the end
of the reporting period the Company had cumulatively obtained 721 patents and 31 software copyrights
participated in the formulation of 35 national and industry technical specifications and standards and set
20 new records recognized by "China Enterprise New Records" establishing a comprehensive innovation system
encompassing intellectual property protection standard development and technology commercialization.The Company has built a robust industry-academia-research collaborative innovation platform becoming
the first in the industry to establish a postdoctoral workstation and a provincial-level engineering
technology research center. In 2025 it was approved to set up the "Shenzhen Postdoctoral Innovation
Practice Base." Six of its subsidiaries are certified as national high-tech enterprises (including five
recognized as "Specialized Sophisticated Distinctive and Innovative" enterprises) forming a powerful
institutional foundation that supports high-quality development. In intelligent manufacturing the Company
has deepened its strategic collaboration with Huawei Cloud and built an industry-leading fully automated
production line leveraging digitalization and intelligence to significantly elevate its manufacturing
capabilities.Product innovation closely aligns with strategic directions such as green low-carbon development and
prefabricated construction. The Company's self-developed series of new products have been applied in
numerous landmark projects across China. Its green energy-efficient curtain wall systems—compliant with
international standards—have achieved large-scale deployment in overseas markets including Australia the
Middle East and Southeast Asia. These technological achievements are rapidly being converted into global
28Annual Report 2025 of China Fangda Group Co. Ltd.
market value fully demonstrating the Company's leapfrog capability from technological breakthrough to
industrial leadership.
2. Brand Value Advantages
With over thirty years of deep expertise in curtain wall systems the Company has always upheld a
"quality-first" philosophy. Through exceptional product performance and service systems it has built
strong brand equity and market credibility. The Company has received numerous accolades including the
"National Quality Award" "Luban Award (National Quality Project Award)" "Zhan Tianyou Civil Engineering
Award" "China Building Decoration Award" and over 200 provincial and ministerial-level awards. Globally
the Company has delivered more than 1000 landmark high-quality projects and has become a leading brand in
the high-end curtain wall segment. The Fangda trademark has been recognized as a "China Well-known
Trademark" and has also been awarded the titles of "International Reputation Brand" and "Shenzhen Old
Brand." The continuous rise of the Company's brand value and industry standing provides a solid foundation
of market trust and client confidence underpinning its high-quality development.
3. Industry Experience Advantage
The Company's wholly-owned subsidiary Fangda Jianke holds the highest level qualifications for
curtain wall design and construction enterprises in China—Grade 1 Professional Contracting Qualification
for Building Curtain Wall Engineering and Grade A Qualification for Building Curtain Wall Engineering
Design. It is one of the leading enterprises in the curtain wall industry in China. The Company's
intelligent curtain wall projects encompass super high-rise buildings large public buildings corporate
headquarters commercial real estate hospitals hotels and other projects featuring diverse forms and
structures. Through constructing various types of projects the Company has accumulated a wealth of
valuable construction experience. China Fangda Group Co. Ltd. has earned consistent client acclaim through
its systematic intelligent construction system extensive project management and implementation experience
and outstanding construction quality.
4. Industrial layout advantages
After years of focused development the Company's intelligent curtain wall systems and new materials
business has established a nationwide strategic layout centered on Shenzhen as its headquarters supported
by four major production bases in Shanghai Chengdu Dongguan and Ganzhou. This network underpins an
integrated full-industry-chain service system covering R&D and design manufacturing project management
construction and installation and maintenance services. Among these Fangda (Ganzhou) Low-Carbon
Intelligent Manufacturing Base—a "5G + Smart Factory" integrating 5G digitalization and the Internet of
Things—has been recognized as a national-level "Green Island Project" continuously leading industry
advancement in intelligent manufacturing and green low-carbon development. Leveraging this well-structured
production base network and strong industrial chain synergy the Company effectively optimizes production
costs enhances operational efficiency and rapidly responds to evolving market demands—providing a solid
foundation for increasing market share and strengthening comprehensive competitiveness thereby further
consolidating its leadership position in the high-end curtain wall sector.
5. Talent
The Company consistently regards talent as the core engine of innovation-driven growth. Through years
of accumulation it has built a senior management team with both global vision and local expertise
29Annual Report 2025 of China Fangda Group Co. Ltd.
alongside a mid-level backbone workforce known for professional competence and strong execution
capabilities. In talent recruitment and development the Company has been approved to establish the
"Shenzhen Postdoctoral Innovation Practice Base" further integrating the talent circulation channel among
"universities–enterprises–industries." Additionally it has recruited multiple international high-end
technical experts from regions including Australia and the Middle East injecting robust momentum into
overseas market expansion and technological innovation. The Company has also established a comprehensive
incentive mechanism and performance evaluation system for technology commercialization fully stimulating
R&D personnel's innovative drive and genuinely implementing a merit-based approach that rewards excellence
and improves efficiency through optimized staffing. By continuously refining career development pathways
for talent and leveraging technological innovation to drive quality improvement and efficiency gains the
Company remains steadfastly committed to independent innovation forging a solid talent foundation for
high-quality enterprise development.
(3) New energy industry
The Company's new energy business focuses on solar photovoltaic (PV) power stations and Building-
Integrated Photovoltaics (BIPV) spanning both the construction and PV sectors to create a unique cross-
industry integration advantage. As early as over two decades ago the Company pioneered the development of
solar PV curtain wall technology and was among China's earliest enterprises engaged in BIPV system design
manufacturing and integration—accumulating profound technical expertise and extensive project experience.The new energy business exhibits strong synergy with the Company's core intelligent curtain wall
operations. Distributed PV systems naturally integrate with building structures creating complementary
effects in technological pathways product integration and customer resources. Drawing on more than twenty
years of experience in electromechanical system integration and project management the Company maintains a
core team equipped with comprehensive professional qualifications and exceptional cross-domain integration
capabilities enabling it to deliver end-to-end solutions—from PV curtain wall design and construction to
operation and maintenance—for clients. Built upon dual technical foundations in architecture and
photovoltaics along with synergistic industrial chain advantages the Company is accelerating the large-
scale deployment of green energy in building applications and continuously reinforcing its core
competitiveness in the Building-Integrated Photovoltaics (BIPV) field.(IV) Commercial Management and Services
China Fangda Group Co. Ltd. has been deeply engaged in commercial management and property services for
many years. Leveraging high-quality assets in core cities such as Shenzhen and Nanchang the Company
continues to advance deep integration of "AI + Property Management" reshaping service experiences and
driving operational efficiency through digital solutions. Through a differentiated positioning strategy and
a digitalized tenant acquisition system the Company achieves precise customer profiling and matching. Its
seasoned professional operations team and strong execution capabilities—further empowered by advanced
digital tools—provide a solid foundation for continuously enhancing brand value and reinforcing its
leading position in regional markets.
30Annual Report 2025 of China Fangda Group Co. Ltd.
III. Industry Situation During the Reporting Period
(1) Intelligent Rail Transit Platform Screen Door Equipment and Systems
1. Industry development
Under the policy guidance of initiatives such as building a "Transportation Power" promoting
coordinated development of city clusters and implementing the "Dual Carbon" strategy China's rail transit
industry is accelerating its critical transition from scale expansion to quality enhancement. Guiding
documents including the "Outline for Building a Transportation Power" and the "National Comprehensive
Three-Dimensional Transport Network Planning Outline" continue to provide strong support for the rail
transit equipment sector in which China Fangda Group Co. Ltd. operates. In 2025 seven government
departments jointly issued the "Implementation Opinions on Artificial Intelligence + Transportation"
promoting large-scale innovative applications of artificial intelligence in the transportation sector and
injecting new momentum into the industry's intelligent transformation.As the opening year of the "15th Five-Year Plan" period (2026–2030) the state has clearly identified
"perfecting a modernized integrated transportation system" as the primary focus driving integration across
transport modes enhanced safety digital-intelligent upgrades and green transformation. During the "15th
Five-Year Plan" period China aims to basically achieve railway modernization ensure core key technologies
are independently controllable and accelerate the development of intelligent and green technologies.Industry consensus has coalesced around advancing high-quality integrated transport services under the
framework of "One Network Four Modernizations".According to operational data released by the Ministry of Transport by the end of 2025 urban rail
transit systems were operating in 54 cities nationwide with 343 lines in service and a total network
length of 11710.3 kilometers. In 2025 alone 18 new lines opened adding 764.7 kilometers of operational
mileage. Urban rail transit continues to grow steadily with both operational scale and service quality
consistently improving.As countries along the "Belt and Road" further increase investment in urban rail transit infrastructure
Chinese high-end equipment manufacturers are expected to play an even greater role in international markets.As a leader in the construction and operation & maintenance of rail transit platform screen door systems
the Company will continue to align with national strategies and relevant industrial policies respond
proactively to industry trends and market demands intensify technological innovation focus on developing
high-value-added products and further expand its market share—contributing a "Chinese solution" to global
urban rail transit development.
2. Business Status
(1) Main products and purposes
China Fangda Group Co. Ltd. has been deeply engaged in the rail transit platform screen door sector
for over two decades. Its core products consist of intelligent platform screen door systems deployed in
urban rail transit and high-speed railway stations complemented by full-lifecycle operation & maintenance
services and value-added technical support.* Urban Rail Transit Platform Screen Door Systems
31Annual Report 2025 of China Fangda Group Co. Ltd.
Urban rail transit platform screen door systems are installed along the edge of station platforms in
metro light rail and other urban rail transit stations. These systems physically separate the train
operation zone from the passenger waiting area and consist of continuous movable barrier doors that align
with train doors and can be opened or closed via multi-level control mechanisms. China Fangda Group Co.Ltd. offers a comprehensive product portfolio covering three main types: full-height enclosed platform
screen door systems full-height non-enclosed platform screen door systems and half-height platform screen
door systems—capable of meeting diverse operational requirements across different rail transit systems and
climate conditions.In terms of safety protection platform screen door systems effectively safeguard passengers by
preventing accidental falls onto tracks and unauthorized access to tunnel areas. In fire or other emergency
scenarios the system integrates with environmental monitoring signaling and other subsystems to enable
coordinated control rapidly activating smoke exhaust modes and passenger evacuation routes to establish
multiple layers of safety assurance. Regarding environmental enhancement the system effectively blocks
dust noise and piston wind pressure from tunnels from entering the platform waiting area creating a
quiet comfortable and temperature-stable boarding environment for passengers. In intelligent services
the Company's products innovatively integrate passenger flow counting functionality. During peak hours
dynamic guidance enables intelligent diversion of passenger flows toward lower-density train cars.Additionally the door units can host passenger information systems supporting multimedia interactive
functions such as real-time announcements information dissemination and commercial advertising—making
them key interactive terminals in smart stations.* High-Speed Railway Platform Safety Door Systems
During the reporting period the Company independently developed the world's first intelligent AI-
powered fully sliding platform door system for high-speed railways—a breakthrough solution tailored to the
complex operating environment of high-speed rail platforms representing a major technological advancement.This system uses intelligent recognition and control technology to automatically align and operate platform
safety doors according to the door positions of incoming high-speed trains of varying models—effectively
solving the long-standing industry challenge posed by the diversity of high-speed train models and
inconsistent door locations. The product has been successfully deployed at Shenzhen Futian High-Speed
Railway Station achieving three "firsts in China":
– the first system compatible with all high-speed train models
– the first installed directly at the edge of a high-speed rail platform and
– the first to obtain CRCC (China Railway Certification Center) certification—
thereby pioneering an entirely new segment in high-speed rail platform door systems.* Full-Lifecycle Operation & Maintenance Services
Leveraging its self-developed intelligent maintenance management system and global service network
China Fangda Group Co. Ltd. provides full-lifecycle operation & maintenance services—including remote
32Annual Report 2025 of China Fangda Group Co. Ltd.
diagnostics on-site repairs spare parts supply and system upgrades—enabling real-time equipment
monitoring and predictive maintenance to ensure long-term safe and stable rail operations.
(2) Main business model
The Company's rail transit intelligent screen door equipment industry is operated by its subsidiary
Fangda Zhiyuan which is an integrated supplier and service provider of rail transit intelligent screen
door systems encompassing research and development design manufacturing installation and technical
services with a complete industrial chain. A mature and complete management system for research and
development procurement production sales and O&M has been established. In R&D the Company employs a
project-driven innovation mechanism that integrates fundamental research with specific customer
requirements. In procurement a dedicated procurement department manages sourcing activities. In production
operations are managed according to contract terms and customer production instructions. In sales the
Company serves metro operators and electromechanical general contractors in the global rail transit sector
exclusively through direct sales with no distribution channels involved. In operation & maintenance the
Company has deployed an intelligent platform screen door O&M support system capable of real-time data
monitoring and rapid fault diagnosis and resolution.
(3) Market competition pattern in which the Company is located and the Company's market position
As a global leader in rail transit platform screen door systems China Fangda Group Co. Ltd. continues
to lead the market thanks to its deep technical expertise and strong brand influence. The Company's
intelligent rail transit platform screen door systems have achieved a coverage rate of over 60% among
Chinese cities with operational metro lines serving more than 120 rail transit lines across over 40 cities
worldwide. Its market share has consistently ranked among the industry's top for many consecutive years.Fangda Zhiyuan (the Company's subsidiary) has been repeatedly included in the "Top 100 Industry Leader
Enterprises in Shenzhen" underscoring its absolute leadership and innovation-driven impact in this
specialized field.Actively responding to China's "Belt and Road" Initiative the Company has become a pioneer in
exporting high-end rail transit equipment overseas. For over a decade it has deeply engaged international
markets and secured multiple landmark platform screen door system projects in "Belt and Road" countries and
regions—including Singapore Malaysia Thailand India Colombia Greece the Philippines Kazakhstan
Hong Kong SAR and Taipei. With the continuous expansion and deepening of its overseas business the
Company's global footprint is becoming increasingly robust and its international competitiveness is
steadily strengthening—providing sustained momentum for high-quality cooperation under the "Belt and Road"
framework.The Company has established a core technology system based entirely on independent intellectual
property rights. It led the drafting of China's first industry standard "Platform Screen Doors for Urban
Rail Transit" and the first national product standard "Platform Screen Door Systems for Urban Rail
Transit". Additionally the Company participated in developing multiple standards including:
– "Technical Guidelines for Smart Station Construction in Rail Transit"
– "Technical Specification for Intelligent Foreign Object Detection Systems in the Gap Between Urban Rail
33Annual Report 2025 of China Fangda Group Co. Ltd.
Transit Platform Screen Doors and Train Doors" and
– "High-Speed Railway Platform Door Systems"
demonstrating its profound technical foundation and leadership in standard-setting.Owing to its exceptional technical capabilities and product quality the Company's urban rail transit
platform safety doors were recognized by China's Ministry of Industry and Information Technology (MIIT) as
a "Manufacturing Single-Product Champion." The designation was successfully renewed in 2025 following re-
evaluation. The Company has received numerous honors and certifications including "National Intellectual
Property Advantage Enterprise" "Guangdong Provincial Science and Technology Award" "National Key New
Product" "National Torch Program Industrialization Demonstration Project" "Guangdong Provincial
Engineering Technology Research Center for Intelligent Rail Transit Platform Doors" "Shenzhen Municipal
Science and Technology Progress Award" and "Shenzhen Specialized Sophisticated Unique and Innovative
(‘Zhuan Jing Te Xin') Enterprise."
It was also among the first in the industry to achieve certification under the International Railway
Industry Standard (IRIS) management system and RAMS (Reliability Availability Maintainability and Safety)
compliance. It was also among the first in the industry to achieve certification under the International
Railway Industry Standard (IRIS) management system and RAMS (Reliability Availability Maintainability
and Safety) compliance. The Company holds a substantial portfolio of patents and software copyrights in
China and abroad forming a comprehensive core technology cluster and intellectual property system based
entirely on independent IP—laying a solid foundation for sustaining its competitive edge in the market.
(2) Intelligent Curtain Wall Systems and Materials
1. Industry development
In 2025 China's curtain wall industry is reaching a critical inflection point—transitioning from
scale-driven expansion to quality-led advancement—under the dual drivers of the deep implementation of the
"Dual Carbon" strategy and the clear policy orientation toward "high-quality housing." On the policy front
the state continues to strengthen its green building agenda. Documents such as the "General Code for
Building Energy Efficiency and Renewable Energy Utilization" explicitly mandate that all newly constructed
public buildings adopt energy-efficient curtain walls and promote energy-saving retrofits of existing
building facades. Meanwhile urban renewal policies are unlocking sustained dividends. The coverage of
urban village renovation policies has expanded from 35 mega and large cities to nearly 300 prefecture-level
cities making the revitalization of aging neighborhoods and industrial zones a new blue ocean for growth
in the construction sector.In terms of market dynamics the industry faces significant pressure due to global uncertainties and
structural adjustments in domestic demand. Overcapacity in the construction sector has intensified
competition and compressed profit margins accelerating the concentration of resources toward leading
enterprises with strong risk resilience. The competitive landscape is now characterized by top-tier firms
dominating the high-end market while small and medium-sized enterprises focus on niche segments. Integrated
34Annual Report 2025 of China Fangda Group Co. Ltd.
solutions spanning "R&D–design–manufacturing–installation–operation & maintenance" have become the core
of competitiveness.On the innovation front the Company is accelerating technological breakthroughs centered on three
pillars: energy efficiency intelligence and safety. Green and energy-saving products—including Building-
Integrated Photovoltaics (BIPV) low-emissivity (Low-E) glass and smart electrochromic glass—are seeing
steadily rising adoption rates. In certain projects winter heating energy consumption has been reduced by
30% and summer cooling energy consumption by 25%. Today's intelligent curtain walls are no longer mere
building envelopes; they have evolved into smart terminals that integrate environmental regulation energy
management and safety protection. Lifecycle management powered by BIM technology and IoT sensor systems—
combined with drone inspections and remote monitoring—has become an industry standard.Internationally the Company is rapidly shifting from "product export" to a new global development
model driven by both technology and brand. Emerging markets in Southeast Asia the Middle East Eastern
Europe and Latin America offer substantial potential and the "regional manufacturing hub + localized
production" approach is becoming a key pathway for optimizing global footprint.During the reporting period the Company pursued dual-track development in both domestic and
international markets. Domestically it precisely aligned with policy directions and market demands
continuously refining its customer targeting and competitive strategies. Overseas the Company deployed
elite teams to reinforce its leadership position in the Australian market and steadily advance strategic
layouts in emerging markets such as Southeast Asia and the Middle East achieving order growth under
controlled risk exposure.
2. Business Status
(1) Main products and purposes
China Fangda Group Co. Ltd.'s intelligent curtain wall systems are widely applicable to exterior or
roofing projects of premium urban public buildings—including high-end office towers corporate
headquarters urban complexes hotels large-scale venues and government administrative buildings—as well
as luxury residential developments. These products integrate modern architectural technologies with
intelligent systems enabling moderate control over HVAC daylighting ventilation and power systems. By
leveraging digitalization and artificial intelligence they significantly enhance energy efficiency and
environmental performance while elevating aesthetic appeal. The Company's intelligent curtain wall projects
have repeatedly won top industry honors such as the "Luban Award (National Quality Engineering Award)"
placing its competitiveness among the global leaders and establishing it as a globally recognized brand in
the curtain wall sector—fully embodying the high-quality attributes of new productive forces.Backed by deep technical expertise and a professional service team the Company actively provides
technical services for existing building envelope systems—including inspection and assessment energy-
efficiency retrofits waterproofing anti-corrosion treatments and maintenance—covering over 8 million
square meters of building area and establishing strong competitive advantages in the industry.New materials represent a key strategic focus for the Company with products centered on low-carbon
eco-friendly intelligent and sustainable features. The Company possesses robust R&D capabilities and
advanced manufacturing bases for PVDF-coated aluminum composite panels and aluminum honeycomb panels. Its
35Annual Report 2025 of China Fangda Group Co. Ltd.
products have been widely applied in major projects across more than 160 cities globally consistently
delivering high-quality material support for green buildings and urban renewal initiatives.
(2) Main business modes specific risks and changes;
The Company's intelligent curtain wall systems and new materials business primarily follows an
integrated "R&D–design–production–construction" operating model which remained unchanged during the
reporting period. Contracts for intelligent curtain wall design and installation are primarily secured
through public or invited tenders. The Company delivers end-to-end solutions covering conceptual design
raw material procurement production on-site installation and after-sales service tailored to specific
order requirements. This model is inherently non-standardized and highly customized. Gross margins vary
significantly across orders due to multiple factors including the client's budget allocation bidding
competition intensity material selection structural complexity of the building project timeline on-site
construction management and cost control capabilities.Project payment settlements typically follow staged milestones: advance payment progress payments
acceptance payment upon completion final settlement payment and retention (quality assurance) deposit.The timing and proportions of each payment are executed based on project progress and contractual terms.Given the long implementation cycles of curtain wall projects the business is highly sensitive to shifts
in national industrial policies fluctuations in raw material prices and changes in labor market
conditions. Significant variations in technical requirements across projects preclude simple replication of
past experience placing high demands on the Company's technology integration and project management
capabilities.Cash flow risk remains one of the primary challenges facing the curtain wall industry. Under the
typical engineering contracting model companies must front substantial capital for material procurement
and construction while project repayments often have extended cycles. Amid the ongoing deep adjustment in
China's real estate sector some clients face liquidity constraints leading to increased accounts
receivable and greater uncertainty in collection timelines. Additionally raw material price volatility and
rising labor costs may adversely affect project profitability.To address these risks the Company has continuously refined its business model and risk control
framework. At the project sourcing stage it strictly enforces entry criteria prioritizing high-quality
projects with favorable payment terms and strong client creditworthiness—thereby filtering out potential
collection risks at the source and ensuring healthy cash flow operations. In process management the
Company established a dedicated collections task force to coordinate receivables recovery enhanced
contract performance oversight and implemented tailored collection strategies—including negotiation
formal demand letters and other diversified approaches—to improve the precision and effectiveness of
collections. Furthermore the Company has instituted a full-lifecycle project risk assessment mechanism
with tiered dynamic risk controls. Collection performance is incorporated into employee evaluations
forming a closed-loop management system integrating "organizational support standardized processes risk
control and performance-based incentives." As of the reporting period end despite a slowing global
economy and domestic market pressures the Company generated net operating cash flow of RMB187412900
effectively safeguarding operational security and demonstrating robust risk resilience and sound cash flow
management—laying a solid financial foundation for sustained high-quality development.
36Annual Report 2025 of China Fangda Group Co. Ltd.
(3) Market competition pattern in which the Company is located and the Company's market position
In 2025 against the backdrop of macroeconomic headwinds and profound policy recalibrations the
building curtain wall industry exhibited a competitive landscape marked by "stability amid pressure and
accelerating differentiation." The domestic market impacted by the deep restructuring of the real estate
sector slowing growth in new projects and intensified competition in the existing building segment saw
slight declines in overall revenue margin compression and widespread cash flow tightness. Many smaller
enterprises with limited risk resilience experienced notable downturns or even existential crises further
accelerating resource consolidation toward industry leaders and driving up market concentration.In response to structural shifts in domestic demand the Company accelerated its "going global"
strategy intensifying expansion efforts in the Middle East Southeast Asia Australia and other overseas
markets.During the reporting period thanks to its deep technical heritage exceptional service quality and
continuously strengthening brand influence the Company maintained its position within the industry's top
tier without significant change. Amid a complex and volatile market environment it reinforced its
competitive edge through measures such as optimizing client portfolios deepening regional engagement and
expediting global deployment. The Company's intelligent curtain wall products have repeatedly received
national-level accolades like the "Luban Award" and have been consecutively listed among the "Shenzhen Top
500 Enterprises" and "Guangdong Top 500 Manufacturing Enterprises" sustaining leading global brand
recognition and market reputation in the curtain wall sector—fully reflecting the comprehensive strength
of an industry frontrunner.
(4) Industry qualification types and validity period
The Company has a Class A qualification for building curtain wall engineering contracting and class A
qualification for building curtain wall engineering design. It is the highest level for curtain wall design
and construction companies in China. During the reporting period the Company's relevant qualifications
have not changed significantly and the validity period has not expired. Details of the meetings are
disclosed as follows:
No. Qualification Valid period
By Thursday February 14
1 Construction curtain wall designing class A
2030
2 Construction curtain wall contracting class A Until December 04 2028
Professional Class II Qualification for
By Monday December 11
3 Mechanical and Electrical Installation
2028
Engineering
By Monday December 11
4 Construction decoration contracting class B
2028
Steel structure engineering contracting class By Monday December 11
5
B 2028
Professional Class II Qualification for Urban
and Road Lighting Engineering By Monday December 11
6
Control Measures: The Company has established 2028
a complete and effective quality control
Design and construction of metal roof (wall) By Friday December 18
7
surface of building 2026
(5) Quality control system implementation standards control measures and overall evaluation
37Annual Report 2025 of China Fangda Group Co. Ltd.
Quality control system: As a leading enterprise of high-end curtain wall the Company pays attention to
quality management. It is the first in the industry to pass ISO9001 ISO14001 OHSAS18001 international and
domestic dual certification GB/T29490 intellectual property management system certification and is the
first to establish sales design supply production one-stop quality control system such as construction
after-sales customer service etc. implement strict quality control and supervision for each link and
create a strong quality management system.Implementation of the standard: In the process of building curtain wall business the Company strictly
complies with GB/T21086-2007 "Building Curtain Wall" JG/T231-2007 "Building Glass Lighting Roof" and other
national and industrial standards.system and dedicated quality management organization. It has introduced digital and information-based
management and leverages advanced technologies such as artificial intelligence (AI) to empower all business
processes. Through cloud-terminal technology the Company enables rapid information transmission and
collaborative application sharing. Strictly implement various quality management and control measures to
provide customers with high-quality products and services.Overall evaluation: The Company's quality control system and executive standards meet the relevant
requirements of the current relevant national norms and standards maintain good operation and provide
customers with stable and reliable products and services.
(6) Major project quality problem during the reporting period
None.
(7) Implementation of the Work Safety Management System
China Fangda Group Co. Ltd. consistently adheres to the work safety principle of "safety first
prevention-oriented and comprehensive governance" firmly establishing a safety-focused development
philosophy. The Company fulfills its primary responsibility for work safety by establishing a robust safety
assurance system signing "Work Safety Responsibility Agreements" and organizing annual "Work Safety
Month" campaigns. These initiatives strengthen foundational safety management enhance on-site supervision
improve capabilities in identifying and mitigating risks and hazards and bolster employees' emergency
response competencies—thereby further elevating the operational effectiveness of its safety management
system. During the reporting period the Company's safety management system operated effectively with no
major safety incidents reported.
(3) New energy industry
Building-Integrated Photovoltaics (BIPV) as a critical pathway for reducing building energy
consumption and carbon emissions is rapidly transitioning from "technology demonstration" to "large-scale
application." The "Administrative Measures for the Development and Construction of Distributed Photovoltaic
Power Generation" issued in 2025 explicitly encourages the adoption of BIPV-integrated construction
models providing institutional support for BIPV development. Furthermore the National Energy
Administration's "Guiding Opinions on Promoting Integrated and Coordinated Development of New Energy" calls
for advancing BIPV deployment and promoting the synchronized planning design and construction of
photovoltaic systems alongside buildings aiming to build a new generation of "solar-storage-DC-flexible"
("Guang Chu Zhi Rou") buildings. BIPV transforms buildings from "energy consumers" into "energy producers."
38Annual Report 2025 of China Fangda Group Co. Ltd.
With continued declines in photovoltaic costs and the implementation of supportive policies BIPV
penetration is expected to rise further delivering sustained growth momentum to the industry.(IV) Commercial Management and Services
1. Industry development
In 2025 against the macro backdrop of stabilizing the real estate market the commercial real estate
sector exhibited characteristics of "structural optimization and value reconfiguration" with regional
divergence creating new development opportunities for core cities. As a core engine of the Greater Bay Area
Shenzhen continues to demonstrate robust office demand driven by its strong industrial base and population
appeal. Technology enterprises remain the top leasing segment with notable activity in specialized fields
such as software development and artificial intelligence. Deepening Shenzhen-Hong Kong integration further
supports corporate occupancy underscoring significant growth potential in Shenzhen's market going forward.
2. Main Business Model Business Project Formats Company Market Position and Competitive Advantages
Main Risks and Countermeasures
The Company's commercial development projects primarily adopt a self-development model with a
combination of partial sales and partial holding. Currently the products developed by the Company mainly
include office spaces commercial properties and apartments. Through years of operational services the
Company has established a professional and efficient team effective management processes and an
information system capable of providing high-quality management and services. The Company's specialization
capabilities brand recognition occupancy rates and revenue levels continue to improve.Leveraging the brand advantage differentiated positioning and regional advantages of its commercial
projects the Company has secured a certain market position. However it still faces multiple risks such as
housing price fluctuations policy regulations and market competition. The Company will employ refined
management flexibly adjust strategies and capitalize on policy benefits to continuously optimize brand
building and marketing promotion thereby reducing operational and management risks and maintaining stable
development.IV. Main Business Analysis
1. Summary
See "I. Main Business Conditions of the Company During the Reporting Period" in Chapter III Management
Discussion and Analysis.
2. Income and costs
(1) Turnover composition
In RMB
20252024
Proportion in Proportion in YOY change (%)
Amount operating costs Amount operating costs
(%)(%)
39Annual Report 2025 of China Fangda Group Co. Ltd.
3377303066.44424224197.7
Total turnover 100% 100% -23.66%
41
Industry
Metal 2569944686.0 3555996915.2
76.09%80.38%-27.73%
production 0 6
Railroad
596770482.6017.67%612820581.0113.85%-2.62%
industry
New energy
18558764.400.55%18259004.010.41%1.64%
industry
Commercial
176038964.945.21%222272168.635.02%-20.80%
services
Others 15990168.50 0.47% 14875528.80 0.34% 7.49%
Product
Curtain wall
2569944686.03555996915.2
system and 76.09% 80.38% -27.73%
06
materials
Subway screen
door and 596770482.60 17.67% 612820581.01 13.85% -2.62%
service
PV power
generation 18558764.40 0.55% 18259004.01 0.41% 1.64%
products
Real estate
rental and
sales and 176038964.94 5.21% 222272168.63 5.02% -20.80%
property
services
Others 15990168.50 0.47% 14875528.80 0.34% 7.49%
District
2995104526.34027988850.5
In China 88.68% 91.04% -25.64%
35
Out of China 382198540.11 11.32% 396235347.16 8.96% -3.54%
Sub-sales mode
3377303066.44424224197.7
Direct sales 100.00% 100.00% -23.66%
41
(2) Industry product region and sales mode accounting for more than 10% of the Company's operating
revenue or operating profit
□ Applicable □ Inapplicable
In RMB
Year-on-year Year-on-year
Year-on-year
Operating change in change in
Turnover Gross margin change in
cost operating operating
gross margin
revenue costs
Industry
Metal 256994468 241520860
6.02%-27.73%-21.78%-7.14%
production 6.00 4.86
Railroad 596770482. 422931696.
29.13%-2.62%-2.70%0.06%
industry 60 88
Commercial 176038964. 75419551.9
57.16%-20.80%31.29%-16.99%
services 94 1
Product
40Annual Report 2025 of China Fangda Group Co. Ltd.
Curtain wall
256994468241520860
system and 6.02% -27.73% -21.78% -7.14%
6.004.86
materials
Subway
596770482.422931696.
screen door 29.13% -2.62% -2.70% 0.06%
6088
and service
Real estate
rental and
176038964.75419551.9
sales and 57.16% -20.80% 31.29% -16.99%
941
property
services
District
299510452266877353
In China 10.90% -25.64% -20.27% -6.00%
6.331.00
382198540.252763421.
Out of China 33.87% -3.54% 4.92% -5.33%
1153
Sub-sales mode
337730306292153695
Direct sales 13.49% -23.66% -18.58% -5.41%
6.442.53
Main business statistics adjusted in the recent one year with the statistics criteria adjusted in the
report period
□ Applicable □ Inapplicable
In RMB
Year-on-year Year-on-year
Year-on-year
Operating change in change in
Turnover Gross margin change in
cost operating operating
gross margin
revenue costs
Industry
Metal 256994468 241520860
6.02%-27.73%-21.78%-7.14%
production 6.00 4.86
Product
Curtain wall
256994468241520860
system and 6.02% -27.73% -21.78% -7.14%
6.004.86
materials
District
242505357230359650
In China 5.01% -29.17% -23.07% -7.53%
2.403.06
144891113.111612101.
Out of China 22.97% 9.54% 19.57% -6.46%
6080
Sub-sales mode
256994468241520860
Direct sales 6.02% -27.73% -21.78% -7.14%
6.004.86
Main business statistics adjusted in the recent one year with the statistics criteria adjusted in the
report period
□ Applicable □ Inapplicable
Different business types of the Company
In RMB
Business type Turnover Operating cost Gross margin
Curtain wall system and
2569944686.002415208604.866.02%
materials
41Annual Report 2025 of China Fangda Group Co. Ltd.
Whether the Company runs business through the Internet
□ Yes □ No
Whether the Company runs overseas projects
□ Yes □ No
Curtain Wall and Materials
Platform Screen Door Business
Business
Total contract Total contract
value of Number of value of
No. Location Number of
corresponding overseas corresponding
overseas
overseas projects overseas
projects (units)
projects (RMB (units) projects (RMB
10000)10000)
1 Asia 13 42090.08 26 313475.97
2 Australia 17 52387.58
3 Europe 2 5030.22
Total 30 94477.66 28 318506.19
(3) The physical sales revenue is high the labor service revenue
□ Yes □ No
(4) Performance of major sales contracts and major purchase contracts signed by the Company as of the
reporting period
□ Applicable □ Inapplicable
Performance Status of Major Sales Contracts Signed as of the Reporting Period
□ Applicable □ Inapplicable
Performance Status of Major Procurement Contracts Signed as of the Reporting Period
□ Applicable □ Inapplicable
In RMB
Cumulative recognized Amount of unfinished
Project amount
output value part
Unfinished project
Of which: Curtain Wall 7673580115.67 3364338526.44 4309241589.22
and Materials Business
Platform Screen
3784704310.591483659600.922301044709.67
Door Business
Major unfinished project
□ Applicable □ Inapplicable
In RMB
Curtain Accounts
Perfo
Wall and Income Receivable
rmanc Cumulative
Materials Project Construction recognize Payment Balance
? e recognizedBusiness amount period d in this collection (including
Progr income
Project period contract
ess
Name assets)
42Annual Report 2025 of China Fangda Group Co. Ltd.
January 2024 – August
2025 (The construction
period stipulated in the
CITIC Financial contract differs from
Center Curtain actual site progress;
183613416.9
Wall Specialist 350844806.34 the client has adjusted 55.39% 192165235.16 135788003.99 56377231.17
0
Engineering the schedule accordingly
Project based on actual
conditions. The project
is currently progressing
smoothly.)
Others:
□ Applicable □ Inapplicable
In RMB
Balance of
Curtain Wall Accumulative
Accumulative Estimate unpaid amount
and Materials recognized gross Settled amount
occurred costs d loss of finished
Business margin
project
Finished but
not settled 5971744276.59 659806616.96 6959594313.57 259541248.09
project
Any major outstanding unsettled projects during the reporting perio.□ Applicable □ Inapplicable
In RMB
Whether Whether
there is the Whether
any counterpar project
Curtain Balance of Reasons
delay in t's settleme
Wall and unpaid for Estim
Contract Settled settleme performanc nt
Materials amount of prolonged ated
? Amount amount nt e entailsBusiness P finished unsettled loss
beyond capability signific
roject Name project balances
contract has ant
ual materially risks
terms changed
Tencent
Shenzhen
Headquarters
Within normal
DY01-04 Block
368726858.81 360255000.00 8471858.81 No No No settlement 0.00
Cloud Building
period
and Tower
Curtain Wall
Project
Others:
□ Applicable □ Inapplicable
(5) Operation cost composition
Industry
In RMB
Industry Item 2025 2024 YOY
43Annual Report 2025 of China Fangda Group Co. Ltd.
Proportion Proportion change
in in (%)
Amount Amount
operating operating
costs (%) costs (%)
Metal Raw
1582715224.4365.53%2034486729.7865.89%-0.36%
production materials
Installation
Metal and
573321451.0723.74%716075096.7423.19%0.55%
production engineering
costs
Metal
Labor cost 140488065.68 5.82% 163122222.74 5.28% 0.54%
production
Railroad Raw
214893928.7350.81%266583537.0561.33%-10.52%
industry materials
Railroad
Labor cost 87112024.55 20.60% 63994720.60 14.72% 5.88%
industry
Installation
Railroad and
39008728.409.22%63941667.4814.71%-5.49%
industry engineering
costs
Operating
Costs of
Commercial Leasing and
16545716.2321.94%17498235.3730.46%-8.52%
services Property
Management
Services
Commercial
Labor cost 28987993.90 38.44% 15189230.19 26.44% 12.00%
services
Commercial Water and
10490208.3913.91%11944357.2220.79%-6.88%
services electricity
Note: Apart from the aforementioned costs other cost items primarily include utility expenses such as
water and electricity and rental fees for the Metal Manufacturing and Rail Transit segments. In the
current period the operating costs of the Commercial Services segment include RMB25257752.23
representing the cost of inventory previously recognized and written off upon termination of the Bangshen
Industrial Park project; other costs mainly consist of land and construction-related expenses.Main business cost
In RMB
20252024
Cost
Business type Proportion Proportion
YOY change
composition Amount in operating Amount in operating (%)
costs (%) costs (%)
Curtain wall
Raw 158271522 203448672
system and 65.53% 65.89% -0.36%
materials 4.43 9.78
materials
Installatio
Curtain wall
n and 573321451. 716075096.system and 23.74% 23.19% 0.55%
engineering 07 74
materials
costs
Curtain wall
140488065.163122222.
Labor cost system and 5.82% 5.28% 0.54%
6874
materials
44Annual Report 2025 of China Fangda Group Co. Ltd.
(6) Change to the consolidation scope in the report period
□ Yes □ No
During the current period the Company's consolidated scope expanded through the establishment of
two new subsidiaries: Fangda Facade (NSW) Pty Ltd (Curtain Wall Sydney Company) and FANGDA FACADE
CONTRACTING L.L.C (Curtain Wall UAE Company).
(7) Major changes or adjustment of business products or services in the report period
□ Applicable □ Inapplicable
(8) Major sales customers and suppliers
Main customers
Total sales amount to top 5 customers (RMB) 685520485.19
Proportion of sales to top 5 customers in the
20.30%
annual sales
Percentage of sales of related parties in top 5
0.00%
customers in the annual sales
Information of the Company's top 5 customers
Percentage in the annual
No. Customer Sales (RMB)
sales
1 No.1 168452676.06 4.99%
2 No.2 157444323.85 4.66%
3 No.3 126511070.30 3.75%
4 No.4 122174274.47 3.62%
5 No.5 110938140.51 3.28%
Total -- 685520485.19 20.30%
Other information about major customers
□ Applicable □ Inapplicable
There is no affiliation between the Company and its top five customers. There are no direct or indirect
ownership interests held by the Company's directors senior management personnel core technical
personnel shareholders with more than 5% stake actual controllers or other related parties among its
major clients.Main suppliers
Purchase amount of top 5 suppliers (RMB) 514598978.87
Proportion of purchase amount of top 5 suppliers in
17.01%
the total annual purchase amount
Percentage of purchasing amount of related parties
0.00%
in top 5 customers in the annual purchasing amount
Information of the Company's top 5 suppliers
45Annual Report 2025 of China Fangda Group Co. Ltd.
Percentage in the annual
No. Supplier Purchase amount (RMB)
purchase amount
1 No.1 152951149.20 5.06%
2 No.2 104515996.70 3.46%
3 No.3 87449637.99 2.88%
4 No.4 85256370.47 2.82%
5 No.5 84425824.51 2.79%
Total -- 514598978.87 17.01%
Other information about major suppliers
□ Applicable □ Inapplicable
There is no affiliation between the Company and its top five suppliers. There are no direct or indirect
ownership interests held by the Company's directors senior management personnel core technical
personnel shareholders with more than 5% stake actual controllers or other related parties among its
major suppliers.Trade business revenue accounted for more than 10% of the Company's total operating revenue during the
reporting period.□ Applicable □ Inapplicable
3. Expenses
In RMB
2025 2024 YOY change (%) Notes
Sales expense 57404021.17 55140153.13 4.11%
Administrative
179347723.55191667435.20-6.43%
expense
Financial expenses 78533485.32 65297933.04 20.27%
R&D cost 132814412.12 171031371.73 -22.34%
4. R&D investment
□ Applicable □ Inapplicable
Expected impact on
the future
R&D project name Purpose Progress Objective
development of the
Company
Enhance product By advancing This approach
quality improve Some projects have standardized aligns with the
installation completed research modular and low- national policies
efficiency and development carbon product on low-carbon
R&D on Eco-Friendly
increase performance design the Company energy efficiency
and Energy-
construction testing and aims to elevate and environmental
Efficient Curtain
safety and reduce prototype prefabrication protection. By
Wall Systems
energy consumption production and capabilities and expanding the
during both will be deployed in building energy application
construction and actual projects. performance scenarios of our
operational phases. enhance system products and
46Annual Report 2025 of China Fangda Group Co. Ltd.
safety lower improving our
maintenance costs technological
and meet evolving advantages in the
market demands. industry we will
drive continuous
company growth and
enhance our market
competitiveness.Leveraging AI
technologies the
The initiative
Company is
elevates system Aligned with
integrating smart
intelligence national policy
sensing
improves comfort in directions this
intelligent
residential and R&D enhances
control and smart
workplace occupant comfort
display
environments lowers building
functionalities
reduces building energy use offers
R&D on Intelligent into its products
energy consumption strong market
Curtain Wall endowing buildings
Completed and equips potential supports
Systems for Livable with autonomous
buildings with more future trends in
Buildings perception and
efficient curtain wall
responsive
intelligent development drives
capabilities. This
exterior protection the Company's
enhances occupant
and energy sustainable growth
comfort optimizes
management— and strengthens its
usability and
maintaining the market
operational
Company's industry competitiveness.convenience and
leadership.improves energy
efficiency.This refines
manufacturing
processes and
Through AI-driven
enhances product
research the
quality.Company is
The initiative
implementing end-
Improve the advances
to-end digital
automation and automation
management and
intelligence of intelligence and
intelligent
R&D on Intelligent production digitalization of
manufacturing—from
Manufacturing processes increase production
raw materials to Completed
Flexible Production production equipment aligns
finished products—
Systems capacity output with green factory
enabling dynamic
and product and green
analysis
quality and reduce manufacturing
optimization and
production costs. principles ensures
quality
production capacity
traceability
and product
throughout
quality and
production.reduces
manufacturing and
management costs.R&D on Platform AI-based research This R&D improves
Optimize product
Screen Door Control is being applied to the adaptability of
Partial projects system performance
Systems for Multi- enhance product the Company's
have been and maintain
Scenario Rail safety platform screen
completed. industry
Transit reliability and door systems to
leadership.Applications availability multi-scenario
47Annual Report 2025 of China Fangda Group Co. Ltd.
meeting diverse deployments
application supporting market
requirements across share expansion.multiple scenarios.Through AI-based
research the
Company is
enhancing its
products with
This initiative
intelligent
reinforces the It further enhances
functionalities—
system's market
such as real-time
adaptability and competitiveness and
monitoring and
intelligence in brand influence
analytics of system
R&D on Intelligent complex operating expands application
operational status
Rail Transit environments scenarios for the
and data dynamic Completed
Platform Screen improves product Company's products
fault detection and
Door Systems performance and strengthens its
alarm intelligent
reliability and technological edge
fault diagnosis
maintains the and supports the
obstacle detection
Company's development of new
smart passenger
leadership position sales channels.alerts and
in the industry.information push
notifications—to
strengthen product
performance and
reliability.Leveraging AI
technologies the
system
intelligently
This R&D enhances
captures and
the system's
identifies train It broadens the
adaptability and
stopping positions The first- application scope
intelligence in the
and dynamically generation product of the Company's
complex operational
R&D on Intelligent adjusts the has been completed products
environment of
Fully-Sliding High- location and width and development of reinforces its
high-speed rail
Speed Rail Platform of openings between the second- technological
improves product
Screen Door Systems door units generation product leadership and
performance and
according to the is currently creates new market
reliability and
actual train door underway. growth
sustains the
positions opportunities.Company's industry-
accommodating door
leading position.configurations
across different
high-speed train
models.R&D personnel
2025 2024 Change
R&D staff number 464 575 -19.30%
R&D staff percentage 15.73% 19.21% -3.48%
Academic structure of R&D personnel
Bachelor 364 423 -13.95%
Master's degree 7 9 -22.22%
48Annual Report 2025 of China Fangda Group Co. Ltd.
Age composition of R&D personnel
Under 30 181 234 -22.65%
30-40198242-18.18%
R&D investment
2025 2024 Change
R&D investment amount
132814412.12171031371.73-22.34%
(RMB)
Investment percentage in
3.93%3.87%0.06%
operation turnover
Capitalization of R&D
0.000.000.00%
investment amount (RMB)
Percentage of
capitalization of R&D
0.00%0.00%0.00%
investment in the R&D
investment
Reasons and effects of major changes in the composition of R&D personnel of the Company
□ Applicable □ Inapplicable
Reason for the increase in the percentage of R&D investment in the business turnover
□ Applicable □ Inapplicable
Explanation of the increase in the capitalization of R&D investment
□ Applicable □ Inapplicable
5. Cash flow
In RMB
Item 2025 2024 YOY change (%)
Sub-total of cash inflow from
3978317134.024615555164.42-13.81%
business operations
Sub-total of cash outflow from
3790904234.154344661070.99-12.75%
business operations
Cash flow generated by business
187412899.87270894093.43-30.82%
operations net
Sub-total of cash inflow generated
1143326620.4610161087.4111152.01%
from investment
Subtotal of cash outflows 1187671778.32 258855539.89 358.82%
Cash flow generated by investment
-44345157.86-248694452.4882.17%
activities net
Subtotal of cash inflow from
2617534643.103967291354.43-34.02%
financing activities
Subtotal of cash outflow from
2702311135.343738674210.69-27.72%
financing activities
Net cash flow generated by
-84776492.24228617143.74-137.08%
financing activities
Net increase in cash and cash
59240331.55252064097.92-76.50%
equivalents
Explanation of major changes in related data from the same period last year
49Annual Report 2025 of China Fangda Group Co. Ltd.
□ Applicable □ Inapplicable
The net cash flow from investing activities during the reporting period increased by 82.17% compared to
the same period last year primarily due to the payment made in the corresponding period of last year for
the construction and equipment of Phase I of Fangda Ganzhou Low-Carbon Intelligent Manufacturing Base.Both the subtotals of cash inflows and outflows from investing activities increased significantly mainly
attributable to the purchase and redemption of bank wealth management products during the current period.The net cash flow from financing activities decreased by 137.08% compared to the same period last year
primarily due to the reduced net proceeds from bank borrowings during the current period.Explanation of major difference between the cash flow generated by operating activities and the net
profit in the year
□ Applicable □ Inapplicable
The difference between net cash flow from operating activities and net profit for the year is primarily
due to the recognition of a fair value loss of RMB280732000 on investment properties and the provision
for asset impairment losses totaling RMB283171000 during the reporting period.V. Non-core business analysis
□ Applicable □ Inapplicable
In RMB
Profit Whether
Amount Reason
percentage continuous
Investment income -25773481.21 4.10% No
Gain/loss caused by
Mainly due to adjustment of fair
changes in fair -280735167.15 44.68% No
value of investment real estate
value
Primarily provisions for
Assets impairment -30626112.52 4.87% impairment of contract assets No
and inventory write-downs
Non-operating
582660.42 -0.09% No
revenue
Primarily represents the deposit
Non-business loss incurred due to the
18360766.41 -2.92% No
expenses termination of the Bangshen
Industrial Park project.Mainly bad debt provision
Credit impairment
-252544839.46 40.20% corresponding to accounts No
loss
receivable
VI. Assets and Liabilities
1. Major changes in assets composition
In RMB
End of 2025 Beginning of 2025 Change
Notes
Amount Proporti Amount Proporti (% )
50Annual Report 2025 of China Fangda Group Co. Ltd.
on in on in
total total
assets assets
Monetary capital 1401292102.72 11.14% 1491777341.84 11.01% 0.13%
Account receivable 885516557.23 7.04% 1123506196.98 8.29% -1.25%
Contract assets 1998091151.43 15.89% 2247698479.96 16.58% -0.69%
Inventory 685058418.56 5.45% 705666408.74 5.21% 0.24%
Investment real
5548371426.5044.12%5835036098.2043.05%1.07%
estate
Long-term share
32988644.630.26%56690973.970.42%-0.16%
equity investment
Fixed assets 940980113.90 7.48% 940894344.39 6.94% 0.54%
Construction in
1214530.340.01%7265104.440.05%-0.04%
process
Use right assets 13470006.41 0.11% 15683121.04 0.12% -0.01%
Short-term loans 1202846497.03 9.57% 1663696422.48 12.27% -2.70%
Contract liabilities 350155877.61 2.78% 268594041.26 1.98% 0.80%
Long-term loans 1290000000.00 10.26% 1137000000.00 8.39% 1.87%
Lease liabilities 8979546.87 0.07% 10652607.48 0.08% -0.01%
Non-current
liabilities due in 1 379089194.66 3.01% 131374661.05 0.97% 2.04%
year
The proportion of overseas assets is relatively high
□ Applicable □ Inapplicable
2. Assets and liabilities measured at fair value
□ Applicable □ Inapplicable
In RMB
Accumulat
ive
changes
Gain/loss Impairmen
in fair Amount Amount
caused by t
Opening value purchased sold in Other Closing
Item changes provided
amount accountin in the the change amount
in fair in the
g into period period
value period
the
income
account
Financial assets
1.
Transacti
onal
financial
assets 410.06
(excludin
g
derivativ
e
51Annual Report 2025 of China Fangda Group Co. Ltd.
financial
assets)
2.
Derivativ
1459950
e.00
financial
assets
3.
Receivabl 4568000
0.00
e .10
financing
4. Other
non-
65197406516131
current -3608.54.17.63
financial
assets
11087747976491
Subtotal -3608.54
0.27.69
Investmen -
58350362161725240753230008025548371
t real 2807319
098.2097.574.787.81426.50
estate 68.67
-
58461232161725240753230008025556347
Total 2807355
838.4797.574.787.81918.19
77.21
Financial
1520625
liabiliti 0.00.00
es
Major changes in the assets measurement property of the Company in the report period
□ Yes □ No
3. Right restriction of assets at the end of the period
Book value on December 31
Item Reason
2025 (RMB)
Various deposits court-ordered fund
Monetary capital 310326554.83
freezes etc.Bills endorsed or discounted but not yet
Notes receivable 39012200.04
due
Account receivable 17261724.13 Loan by pledge
Fixed assets 192954910.15 Loan by pledge
Intangible assets 22728870.63 Loan by pledge
Investment real estate 3349490698.00 Loan by pledge
Long-term Equity Investments (Parent 100% stake in Fangda Property
Company) Development held by the Company
Total 3931774957.78
VII. Investment
1. General situation
□ Applicable □ Inapplicable
52Annual Report 2025 of China Fangda Group Co. Ltd.
2. Major equity investment in the report period
□ Applicable □ Inapplicable
3. Major non-equity investment in the report period
□ Applicable □ Inapplicable
4. Financial assets investment
(1) Securities investment
□ Applicable □ Inapplicable
The Company made no investment in securities in the report period
2. Derivative investment
□ Applicable □ Inapplicable
1) Derivative investments for hedging purposes during the reporting period
□ Applicable □ Inapplicable
In RMB10000
Proportio
Accumulat n of
ive closing
changes investmen
Gain/loss
in fair Amount t amount
Initial caused by Amount in
Opening value sold in Closing in the
Type investmen changes this
amount accountin this amount closing
t amount in fair period
g into period net
value
the assets in
income the
account report
period
Shanghai
4608.454608.45298.06146.006858.427615.823851.060.69%
aluminum
Forward
foreign 636.00 636.00 0.00%
exchange
Total 4608.45 4608.45 298.06 146.00 7494.42 8251.82 3851.06 0.69%
Accountin
g
policies
and The aluminum futures and forward foreign exchange businesses of the Company meet the
specific applicable conditions of hedge accounting specified in the accounting standards and are
accountin applicable to hedge accounting which are classified as cash flow hedging. The corresponding
g accounting policies and accounting principles have not changed from the previous reporting
principle period.s of
hedging
business
53Annual Report 2025 of China Fangda Group Co. Ltd.
during
the
reporting
period
as well
as
whether
there are
significa
nt
changes
compared
with the
previous
reporting
period
Descripti
on of
actual
The actual income of the aluminum futures hedging instrument and the spot value change of
profit
the hedged aluminum ingot in the reporting period is RMB122900; The gains and losses
and loss
arising from forward foreign exchange hedging instruments offset the value changes of the
during
hedged items due to exchange rate fluctuations.the
reporting
period
Descripti
on of The profit and loss generated by the company's hedging instrument can offset the value
hedging change of the hedged item and the hedging effect of the hedging business is good.effect
Capital
Self-owned fund
source
Risk
analysis
and
control
measures
for the The aluminum futures hedging and foreign exchange derivatives trading businesses carried out
derivativ by the Company are derivative investment businesses. The derivative investment business
e holding carried out by the Company follows the basic principle of locking the price and exchange
in the rate of raw materials does not carry out speculative trading operations and carries out
report strict risk control when signing hedging contracts and closing positions. The Company has
period established and implemented the "Derivatives Investment Business Management Measures" and
(includin "Commodity Futures Hedging Business Internal Control and Risk Management System". It has
g without made clear regulations on the approval authority business management risk management
limitatio information disclosure and file management of derivatives trading business which can
n market effectively control the risk of the Company's derivatives holding positions.liquidity
credit
operation
and legal
risks)
Changes
in the
market Fair value of derivatives are measured at open prices in the open market
price or
fair
54Annual Report 2025 of China Fangda Group Co. Ltd.
value of
the
derivativ
e in the
report
period
the
analysis
of the
derivativ
e's fair
value
should
disclose
the
method
used and
related
assumptio
ns and
parameter
s.Lawsuit
None
(if any)
Disclosur
e date of
derivativ
e
investmen
t October 29 2025
approval
by the
Board of
Directors
(if any)
2) Derivative investment for the purpose of speculation during the reporting period
□ Applicable □ Inapplicable
During the reporting period there was no derivative investment for the purpose of speculation.VIII. Major assets and equity sales
1. Major assets sales
□ Applicable □ Inapplicable
The Company sold no assets in the report period.
2. Major equity sales
□ Applicable □ Inapplicable
55Annual Report 2025 of China Fangda Group Co. Ltd.
IX. Analysis of major joint stock companies
□ Applicable □ Inapplicable
Major subsidiaries and joint stock companies affecting more than 10% of the Company's net profit
In RMB
Main Registere Total Net Operation Net
Company Type Turnover
business d capital assets assets profit profit
Fangda Curtain
Construct wall - -
Subsidiar 6000000 4769495 1565098 2320886
ion system 3310045 2643291
ies 00.00 116.67 142.62 235.30
Technolog and 92.50 69.54
y materials
Rail
Transit
Fangda Subsidiar Platform 1050000 9778570 4295493 5967704 1006169 8554922
Zhiyuan ies Screen 00.00 42.55 72.38 82.60 09.97 4.11
Doors and
Services
Real - -
Fangda Subsidiar 2000000 5364111 2456398 9043903
estate 2114913 1711557
Property ies 00.00 598.75 149.52 4.43
sales 82.38 98.89
Jiangxi
Real - -
Property Subsidiar 1000000 4354721 1369175 2025534
estate 1041944 7808206
Developme ies 00.00 73.64 19.38 2.73
sales 37.67 6.97
nt
Acquisition and disposal of subsidiaries in the report period
□ Applicable □ Inapplicable
Acquisition and disposal Impacts on overall
Company of subsidiaries in the production operation
report period and performance
Fangda Facade (NSW) Pty Ltd (Curtain Wall Sydney
Newly set None
Company)
FANGDA FACADE CONTRACTING L.L.C (Curtain Wall UAE
Newly set None
Company)
Major joint-stock companies
Explanation of Subsidiary Performance Volatility: Fangda Construction Technology Co. Ltd. reported a
net loss of RMB264329169.54 during the reporting period primarily due to asset impairment provisions
totaling RMB216465527.09 (mainly on accounts receivable and contract assets) and a gross profit reduction
of RMB259859790.31 resulting from lower revenue and declining gross margins collectively reducing net
profit by RMB404876519.79. Fangda Real Estate Co. Ltd. recorded a net loss of RMB171155798.89 mainly
due to a fair value loss of RMB185846384.00 recognized on investment properties related to the Fangda
City project which reduced net profit by RMB139384788.00. Jiangxi Zhidi Real Estate Co. Ltd. incurred a
net loss of RMB78082066.97 primarily driven by a fair value loss of RMB88125226.00 on investment
properties of the Nanchang Fangda Center project and an inventory write-down provision of RMB23306214.74
together reducing net profit by RMB83573580.56.
56Annual Report 2025 of China Fangda Group Co. Ltd.
X. Structural entities controlled by the Company
□ Applicable □ Inapplicable
XI. Future Prospect
(1) Competition map and development trend
1. Rail Transit Platform Screen Door Equipment and Systems
With the continued deepening of China's national urbanization strategy the integration of intercity
and metropolitan rail transit networks is accelerating creating significant development opportunities for
intercity and suburban rail systems. In terms of competitive landscape the rail transit equipment sector
is witnessing consolidation of advantages among leading enterprises with resources increasingly
concentrating in technologically advanced players. Regarding industry trends as the number of operational
rail transit lines in China continues to grow a large volume of equipment is entering the maintenance
phase rapidly unlocking the aftermarket for inspection repair and maintenance services thereby
expanding the scale of the after-sales market. Countries and regions along the "Belt and Road" are
continuously increasing investment in urban rail transit infrastructure presenting strategic opportunities
for Chinese high-end equipment manufacturers to expand into overseas markets. The industry is accelerating
its transformation toward intelligent and green development with technological innovations—particularly
in artificial intelligence (AI) and big data—deeply empowering equipment maintenance and system
integration services.
2. Intelligent Curtain Wall and Materials Systems
In recent years the competitive landscape of the curtain wall industry has continued to evolve with
increasing industry concentration and scale. Leading enterprises possessing comprehensive advantages in
talent technology brand and capital have demonstrated pronounced capabilities in undertaking complex
innovative and integrated projects resulting in a continuous shift of market share toward these
advantaged companies. Meanwhile technological innovations—such as artificial intelligence (AI) modular
prefabrication and Building Information Modeling (BIM)—are accelerating the industry's transformation and
upgrading becoming a key engine driving sectoral development. The accelerated construction of a unified
national market is providing leading enterprises with broader market opportunities. As high-quality
cooperation under the "Belt and Road" initiative deepens and delivers tangible results Chinese curtain
wall companies are rapidly transitioning from "product export" to a globalization model driven by both
"technology and brand."
3. New Energy
Driven by the continued advancement of China's "dual carbon" strategic goals and the full
implementation of green building policies Building-Integrated Photovoltaics (BIPV)—as a critical pathway
for building energy efficiency and carbon reduction—is entering a new phase of high-quality development.With continuous declines in photovoltaic module costs and accelerated technological iteration enterprises
possessing system integration capabilities product innovation strengths and full-industry-chain service
advantages are increasingly standing out in market competition. BIPV competition is now characterized by
dual drivers of "technology + brand." Leading enterprises leveraging robust R&D capabilities and extensive
57Annual Report 2025 of China Fangda Group Co. Ltd.
project experience are rapidly capturing premium segments—including high-end commercial buildings public
infrastructure and urban renewal projects. As the inaugural year of the "15th Five-Year Plan" period 2026
saw the Government Work Report explicitly call for vigorous development of the green and low-carbon economy
and deeper promotion of zero-carbon parks and factories signaling clear momentum toward the deep
integration of new energy with traditional industries.
4. Commercial Management and Services
In 2025 sustained policy support gradually restored confidence in the property market and bolstered
broader socio-economic recovery. Regional divergence is creating new development opportunities for the
Guangdong-Hong Kong-Macao Greater Bay Area which benefits from mature industrial ecosystems strong
population appeal high corporate occupancy rates and ongoing Shenzhen-Hong Kong integration—indicating
significant future potential for Shenzhen's market.
(2) Company development strategy and business plan
In 2026 China Fangda Group Co. Ltd. will closely align with its global strategy adhering to a
balanced approach of prudent operations and innovative breakthroughs. The Company will continue to
reinforce its core businesses—including rail transit platform screen door systems and high-end intelligent
curtain walls—deepen coordinated domestic and international market deployment comprehensively empower
industrial upgrading through emerging technologies such as AI systematically mitigate operational risks
and build robust core competitiveness to drive strategic transformation and performance enhancement across
all business segments. In line with its annual operational targets the Company will prioritize the
following key initiatives:
1. Focus on Sci-Tech Innovation to Cultivate New Growth Drivers
The Company will uphold innovation as the cornerstone of its development applying AI comprehensively
across R&D manufacturing and operations. It will strategically invest in frontier technologies and new
product development actively exploring new technologies products industries and markets suited to its
growth trajectory—with intensified R&D and application in intelligent transportation equipment advanced
materials green and energy-efficient products and prefabricated construction. It will further refine its
industry-academia-research collaborative innovation system leveraging postdoctoral innovation platforms
and other R&D institutions to strengthen core technical teams accelerate the efficient conversion of
scientific achievements foster new quality productive forces and solidify technological barriers.
2. Deepen Market Deployment and Upgrade Business Models
Domestically the Company will firmly implement a key-account strategy forging long-term symbiotic
strategic partnerships with high-quality clients. Internationally it will accelerate overseas expansion
advance localization of its global operations enhance its overseas project execution and risk management
systems and strengthen global brand building—thereby fostering a mutually reinforcing domestic-
international dual-circulation market structure and further elevating its global market share and brand
influence.
3. Strengthen Operational Control to Enhance Quality and Efficiency
The Company will comprehensively reduce contract assets and accounts receivable by rigorously assessing
client creditworthiness and contract quality at the source accelerating settlement and collection of
existing receivables and reinforcing operational safety. It will restructure its procurement system
58Annual Report 2025 of China Fangda Group Co. Ltd.
integrate and cultivate high-quality supplier resources and establish a core competitive advantage through
scaled procurement. It will advance integration of business and finance elevate financial management and
digital capabilities and enable data-driven decision-making. Clear delineation of responsibilities rights
and interests across all organizational levels along with optimized structures and workflows will break
down departmental silos and comprehensively enhance group-level control and project delivery performance.
4. Strengthen Talent Foundation and Team Capabilities
The Company will intensify recruitment and development of high-caliber multidisciplinary and
international talents with priority hiring in critical areas such as overseas operations and AI technology
and actively promote outstanding young professionals regardless of conventional constraints. It will refine
talent incentive and development mechanisms optimize talent pipeline structures enhance strategic
thinking and management training for leaders and encourage company-wide adoption of emerging technologies
like AI to cultivate "super individuals." It will build learning-oriented innovation-driven teams to
ensure robust talent supply for global expansion and digital-intelligent transformation.
5. Consolidate Foundational Management and Elevate Corporate Governance
The Company will advance management system innovation streamline processes reduce administrative
costs and improve overall operational and execution efficiency. It will enforce end-to-end cost control
instill a "everyone is a cost center" mindset and establish a holistic cost-reduction framework across the
value chain. It will strengthen its risk management framework—with focused attention on overseas tax
foreign exchange and legal risks—as well as comprehensive oversight of contractual performance work
safety and compliance thereby advancing the modernization of corporate governance.
(3) Potential Risks
1. Risks of macro environment and policy changes
The Company's core businesses are closely tied to the macro-economy and industry policies rendering
them highly sensitive to overall macroeconomic conditions. As the Company deepens its global market
footprint adverse shifts in domestic or international macroeconomic conditions—such as a slowdown in
fixed-asset investment—combined with geopolitical conflicts localized wars and regional instability
could lead to reduced demand in sectors like rail transit equipment and building curtain walls or
intensify industry competition. Such developments may adversely affect the Company's profitability and
operating performance.To effectively address risks and challenges arising from macroeconomic and policy changes the Company
will closely monitor developments in the domestic and global macroeconomy industry policies and
geopolitical dynamics and promptly optimize and adjust its business strategies accordingly. It will
continuously strengthen technological innovation and digital transformation actively promote the deep
integration of artificial intelligence (AI) into R&D operations and management and enhance its core
competitiveness and risk resilience to ensure sustained and stable growth.
2. Market competition risks
The Company primarily operates in the rail transit platform screen door systems and high-end building
curtain wall segments—industries characterized by a high degree of marketization. In China's rail transit
platform screen door sector domestic manufacturers' technologies are maturing rapidly leading to
intensified competition. Meanwhile the curtain wall industry remains fragmented with increasingly fierce
59Annual Report 2025 of China Fangda Group Co. Ltd.
competition for high-end landmark and key projects. If the Company fails to sustain its advantages in
technology brand and service its market share and operational performance could be negatively impacted.To proactively mitigate competitive risks the Company will closely track industry trends and
technological evolution adhere to innovation-driven development and refined management and continuously
enhance product competitiveness and operational efficiency. It will deepen industry-academia-research
collaboration accelerate frontier technology research and commercialization of scientific achievements
and remain committed to high-quality high-efficiency growth. While reinforcing its dominant position in
the domestic market the Company will actively expand into overseas markets—particularly along the "Belt
and Road"—to build a mutually reinforcing domestic-international dual-circulation development model and
maintain its industry leadership.
3. Production and operation risks
The Company's production and operations are significantly influenced by macroeconomic conditions and
supply-demand dynamics. Sharp fluctuations in prices of key raw materials and persistently rising labor
costs could directly impair product profitability and increase operational uncertainty and risk.To effectively manage these risks the Company will employ hedging instruments such as futures
negotiate contract adjustments with partners and implement scientifically optimized raw material
procurement plans to mitigate price volatility. It will strictly enforce supplier management mechanisms
continuously elevate the technological sophistication of production management increase R&D investment
refine manufacturing processes and advance automation and intelligent upgrades of production equipment to
reduce material waste. Additionally the Company will deepen the construction of intelligent and
digitalized construction systems promote the adoption of new technologies and processes and enhance
workforce skills training—to improve product quality and production efficiency while ensuring safety
thereby strengthening operational resilience.
4. Management risks
As the Company's business scale expands and overseas operations grow the complexity of group-level
management increases exposing the Company to certain organizational and internal control risks. Moreover
with increasingly stringent capital market regulatory requirements the Company faces higher expectations
for standardized and refined corporate governance.To effectively prevent management risks the Company will continue to deepen management reforms
optimize organizational structures and business processes and strengthen its internal control framework
and supporting management systems. It will also continuously improve talent recruitment and development
mechanisms actively attract high-caliber highly skilled and multidisciplinary technical and managerial
personnel optimize talent pipelines and human resource allocation and comprehensively enhance overall
management effectiveness and governance standards—providing a solid foundation for high-quality
development.XII. Reception of investigations communications or interviews in the
reporting period
□ Applicable □ Inapplicable
60Annual Report 2025 of China Fangda Group Co. Ltd.
Main content
Disclosure
involved and
Time/date Place Way Visitor Visitor of
materials
information
provided
Investors
Investor
participatin
Online Relationship
g in the Business and
29 April Network communicatio Record Form
Others Company's future
2025 platform n on online on
2024 development
platforms www.cninfo.c
Performance
om.cn
Presentation
Investors
Investor
participatin
Online Relationship
g in the Business and
November 20 Network communicatio Record Form
Others collective future
2025 platform n on online on
investor development
platforms www.cninfo.c
reception
om.cn
day event
XIII. Implementation Status of Market Capitalization Management System and
Valuation Enhancement Plan
Has the Company formulated a market value management system
□ Yes □ No
Has the Company disclosed a valuation enhancement plan
□ Yes □ No
On April 22 2025 the Company disclosed the "China Fangda Group Co. Ltd. Valuation Enhancement Plan"
on cninfo.com.cn (http://www.cninfo.com.cn) detailing the triggering circumstances and procedures for
formulating the valuation enhancement plan and introducing specific measures taken by the Company to
enhance valuation. This plan is closely aligned with the Company's actual situation and development
strategy helping to improve the Company's operating quality and investment value enhance investor returns
and promote the Company's long-term stable development.XIV. Implementation Status of the "Dual Enhancement of Quality and Returns"
Action Plan
Has the Company disclosed the announcement of the "Quality and Return Double Enhancement" action plan
□ Yes □ No
For details please refer to the "China Fangda Group Co. Ltd. Announcement on the 'Quality and Return
Dual Enhancement' Special Action Plan" disclosed by the Company on April 8 2026 on the CNINFO
(http://www.cninfo.com.cn).
61Annual Report 2025 of China Fangda Group Co. Ltd.
Chapter IV Corporate Governance Environment and Society
1. Overview
In accordance with relevant laws regulations and normative documents—including the PRC Company Law
the Securities Law the Administrative Measures for Independent Directors of Listed Companies and the Code
of Corporate Governance for Listed Companies—the Company has continuously optimized its corporate
governance structure and established a sound internal control system along with comprehensive internal
management policies. During the reporting period in compliance with the latest requirements of the PRC
Company Law and the CSRC's Guidelines on the Articles of Association for Listed Companies the Company
abolished its Board of Supervisors transferring its functions to the Audit Committee of the Board of
Directors. Concurrently the Company revised its internal rules and regulations accordingly further
refining its governance structure and standardizing corporate operations.Any significant difference between the actual situation of corporate governance and the laws
administrative regulations and the provisions on the governance of listed companies issued by the CSRC
□ Yes □ No
There is no significant difference between the actual situation of corporate governance and the laws
administrative regulations and the provisions on the governance of listed companies issued by the CSRC.
2. The independence of the Company relative to the controlling shareholders
and actual controllers in ensuring the company's assets personnel finance
institutions business etc
The Company maintains complete separation from its controlling shareholder and actual controller in
terms of business personnel assets organizational structure and finance and possesses an independent
integrated business system and autonomous operational capability. Details of the meetings are disclosed
as follows:
(1) In the aspect of business: the Company has its own purchasing production sales and customer
service system which performing independently. There is not any material related transactions occurred
with the controlling shareholders.
(2) In personnel the labor management personnel and salary management are operated independently
from the controlling shareholder. The senior managements take salaries from the Company and none of them
takes senior management position in the controlling party.
(3) In assets the Company owns its production supplementary production system and accessory
equipments independently and possesses its own industrial properties non-patent technologies and
trademark.
(4) In organization the production and business operation executive management and department
setting are completely independent from the controlling shareholder. No situation of combined office
exists. The Company adjusts its organizing structure only for its own practical requirement of
development and management.
62Annual Report 2025 of China Fangda Group Co. Ltd.
(5) In accounting the company has its own independent accounting and auditing division established
independent and completed accounting system and management rules has its own bank account and exercise
its liability of taxation independently.
3. Competition
□ Applicable □ Inapplicable
IV. Directors and Senior Management
1. Profiles
Numbe
Numbe
r of
Incre Decre r of
share Other
ased ased share
Start s incre
End share share s
ing held ase
Job date s in s in held
Gende Posit date at and Reaso
Name Age statu of this this at
r ion of begin decre ns
s the perio perio end
the ning ase
term d d of
term of (shar
(shar (shar the
the e)
e) e) perio
perio
d
d
Novem
Xiong In 28 Inapp
Chair ber 5110 5110
Jianm M 68 offic April 0 0 0 licab
man 20 257 257
ing e 2026 le
1995
Chair
In March 28 Inapp
Xiong man
M 43 offic 20 April 0 0 0 0 0 licab
Xi Presi
e 2023 2026 le
dent
Vice In March 28 Inapp
Xiong
M 43 Chair offic 29 April 0 0 0 0 0 licab
Xi
man e 2024 2026 le
Xiong In April 28 Inapp
Direc
Jianw M 57 offic 16 April 0 0 0 0 0 licab
tor
ei e 1999 2026 le
In April 28 Inapp
Lin Direc
M 48 offic 11 April 0 0 0 0 0 licab
Kebin tor
e 2017 2026 le
Vice In June 28 Inapp
Lin
M 48 presi offic 6 April 0 0 0 0 0 licab
Kebin
dent e 2008 2026 le
Indep
Cao enden In May 28 Inapp
Zhong M 47 t offic 8 April 0 0 0 0 0 licab
xiong direc e 2020 2026 le
tor
Indep
Zhan enden In March 28 Inapp
Weiza M 61 t offic 20 April 0 0 0 0 0 licab
i direc e 2023 2026 le
tor
63Annual Report 2025 of China Fangda Group Co. Ltd.
Indep
enden In Janua 28 Inapp
Song
F 47 t offic ry 8 April 0 0 0 0 0 licab
Ming
direc e 2024 2026 le
tor
Wei Vice In July 28 Inapp
Yuexi M 57 presi offic 29 April 0 0 0 0 0 licab
ng dent e 2011 2026 le
Vice In March 28 Inapp
Dong
M 47 presi offic 20 April 0 0 0 0 0 licab
Gelin
dent e 2023 2026 le
Secre
Novem
Ye tary In 28 Inapp
ber 2900 2900
Zhiqi M 51 of offic April 0 0 0 licab
1300
ng the e 2026 le
2024
Board
51395139
Total -- -- -- -- -- -- 0 0 0 --
257257
Whether any directors or senior management personnel left office during their term in the reporting
period
□ Yes □ No
Changes in the Company's directors and senior management
□ Applicable □ Inapplicable
2. Office Description
Professional backgrounds key career experiences and current primary responsibilities of the Company's
incumbent directors and senior management
(1) Mr. Xiong Jianming: Ph.D. in Business Administration Philosophy Senior Engineer Founder of the
Company and currently Chairman of the Company. — National Deputy to the 14th National People's Congress;
President of Gan Shang General Chamber of Commerce; Chairperson of Nanshan District Federation of Industry
and Commerce Shenzhen. He previously worked at the Jiangxi Provincial Industrial Mechanical Design and
Research Institute and the Shekou District Administration Bureau of the Shenzhen Municipal People's
Government. He formerly served as a delegate to the 13th National People's Congress a council member of
the Sixth Session of the China Guangcai Enterprise Promotion Association a delegate to the 10th Guangdong
Provincial People's Congress a member of the 11th Jiangxi Provincial Committee of the Chinese People's
Political Consultative Conference (CPPCC) a delegate to the 4th Party Congress of Shenzhen Municipality a
delegate to the 2nd 3rd and 6th Shenzhen Municipal People's Congresses a member of the 5th CPPCC
Shenzhen Municipal Committee and founding president of the Shenzhen Solid-State Lighting Promotion
Association.
(2) Mr. Xiong Xi: Master's degree. Currently serves as Vice Chairman and President of the Company and
Chairman of Fangda Zhiyuan Company; also a member of the 7th Shenzhen Municipal Committee of the Chinese
People's Political Consultative Conference (CPPCC). Previously served as Database Engineer at China
Merchants Bank Co. Ltd.; Deputy Director of the Company's Technology & Information Department and Human
Resources Department; Assistant to the President; and Deputy General Manager of Fangda Construction
Technology Co. Ltd.
64Annual Report 2025 of China Fangda Group Co. Ltd.
(3) Mr. Xiong Jianwei: Master of business administration. Now he is the director of the Company
chairman of Fangda Jianke company and member of the 14th Nanchang CPPCC Standing Committee.
(4) Mr. Lin Kebin: Bachelor's degree. Currently serves as Director and Vice President of the Company
and General Manager of Fangda Zhiyuan Company. Previously served as Chief Financial Officer of the Company.
(5) Mr. Cao Zhongxiong: Ph.D. Currently serves as Independent Director of the Company Assistant to the
President of China Development Institute (China·Shenzhen) and Director of the Institute's Digital
Strategy and Economics Research Center specializing in research and consulting on new economy and
corporate strategy. He used to be a technician of China Chemical Group Bluestar Detergent Co. Ltd. and the
executive director of the New Economy Research Institute of the Comprehensive Development Research
Institute (Shenzhen China).
(6) Mr. Zhan Weizai: Ph.D. Certified Senior Accountant. He currently serves as an Independent Director
of China Fangda Group Co. Ltd. a Director of Tianyin Communication Holding Co. Ltd. and an Independent
Director of Shenzhen Everwin Precision Technology Co. Ltd. and Shenzhen Zhiwei Intelligent Technology Co.Ltd. He is also a Guest Professor at the School of Economics and Management of Wuhan University and the
School of Mathematics and Statistics of Central China Normal University and an Adjunct Mentor at Jiangxi
University of Finance and Economics. He previously served as Chairman of Shenzhen Jiangcai Ren Education
Management Co. Ltd. Supervisor of Shenzhen Dewo Industrial Development Co. Ltd. and Independent
Director of Shenzhen Weiye Decoration Group Co. Ltd. and Chongqing Zhijian Electronic Co. Ltd.
(7) Ms. Song Ming: Ph.D. in Law. She currently serves as an Independent Director of China Fangda Group
Co. Ltd. Director of the Special Economic Zone Legislative Research Center Director of the
Constitutional and Administrative Law Teaching and Research Section and Director of the Administrative
Rule of Law Research Center at the Law School of Shenzhen University where she is also a Doctoral
Supervisor. She concurrently serves as an Executive Council Member of the Shenzhen Law Society Chair of
the Administrative Law Research Association of the Shenzhen Law Society Invited Supervisor of the
Political and Legal Affairs Commission of the Shenzhen Municipal Committee of the CPC and Expert Lay Judge
of the Shenzhen Administrative Trial Center.
(8) Mr. Wei Yuexing: Bachelor's degree Senior Engineer. Currently serves as Vice President of the
Company and General Manager of Fangda Construction Technology Co. Ltd.
(9) Mr. Dong Gelin: Bachelor's degree Senior Engineer. Currently serves as Vice President of the
Company and Deputy to the 8th People's Congress of Nanshan District Shenzhen. He has served as a
supervisor of the Company a designer of Fangda Construction Engineering Company a chief engineer of a
design institute a general manager of Fangda Construction Engineering Beijing Branch and a deputy general
manager of Fangda Construction Engineering.
(13) Mr. Ye Zhiqing: Bachelor's degree Senior Engineer. Currently serves as Secretary of the Board of
Directors of the Company and Chairman of the Supervisory Board of Fangda Zhiyuan Company. Previously held
positions including Supervisor of the Company General Manager of Fangda Real Estate Co. Ltd. Deputy Dean
of the Design Institute of Fangda Jianke Co. Ltd. Assistant to the General Manager of Fangda Construction
Technology Co. Ltd. and General Manager of Shanghai Branch of Fangda Construction Technology Co. Ltd.Situation where the controlling shareholder or actual controller concurrently serves as both Chairman and
General Manager of the listed company
65Annual Report 2025 of China Fangda Group Co. Ltd.
□ Applicable □ Inapplicable
Offices held at shareholders entities
□ Applicable □ Inapplicable
Whether any
remuneration is
Shareholder Starting date End date of the
Name Office paid at the
entity of the term term
shareholder
entity
Shengjiu
Xiong Jianming Director October 6 2011 No
Investment Ltd.Office
None
description
Offices held at other entities
□ Applicable □ Inapplicable
Whether any
Position held remuneration is
Starting date End date of the
Name Entity name in another paid at the
of the term term
entity shareholder
entity
Jiangxi
Business
January 10
Xiong Jianming Innovative Director No
2018
Property Joint
Stock Co. Ltd.Gongqing City
Shengtai
Investment Executive December 26
Xiong Jianming No
Partnership partner 2022
(Limited
Partnership)
Assistant to
General
the President
Development
Director of the
Research
Cao Zhongxiong Digital January 1 2022 Yes
Institute
Strategy and
(Shenzhen
Economics
China)
Research Center
Shenzhen
Jiangcai
September 28
Zhan Weizai Education Chairman July 1 2017 No
2025
Management Co.Ltd.Shenzhen Dewo
Industrial January 23
Zhan Weizai Supervisor June 1 2010 Yes
Development 2025
Co. Ltd.Shenzhen
Everwin
Independent
Zhan Weizai Precision May 15 2020 Yes
director
Technology Co
Ltd.Shenzhen Zhiwei
Independent November 1
Zhan Weizai Intelligent Yes
director 2024
Technology Co.
66Annual Report 2025 of China Fangda Group Co. Ltd.
Ltd.Telling
Telecommunicati November 26
Zhan Weizai Director Yes
on Holding Co. 2021
Ltd.Director of the
Law School of Center for
Song Ming Shenzhen Administrative April 3 2017 Yes
University Rule of Law
Research
Office
None
description
Penalties imposed by securities regulatory authorities on the Company's incumbent and former directors
and senior management during the reporting period over the past three years
□ Applicable □ Inapplicable
3. Compensation of Directors and Senior Management
Decision-making procedures determination basis and actual payment status of compensation for directors
and senior management
1. Remuneration schemes for directors are proposed by the Remuneration and Assessment Committee of the
Board and implemented upon approval of the Board and the Shareholders' Meetings; the remuneration
schemes for executives are approved and implemented by the Board.The remuneration scheme for directors of the Company shall be determined by the shareholders' general
meeting while the compensation scheme for senior executives shall be determined by the Board of
Directors. Additionally the remuneration and assessment committee of the Board of Directors shall review
the actual payment of remuneration on an annual basis.Compensation of directors and senior management during the reporting period
In RMB10000
Remuneration
Total
Name Gender Age Position Job status from related
remuneration
parties
Xiong
M 68 Chairman In office 210.79 No
Jianming
Vice Chairman
Xiong Xi M 43 In office 205.16 No
and President
Xiong
M 57 Director In office 104.43 No
Jianwei
Director vice
Lin Kebin M 48 In office 109.6 No
president
Cao Independent
M 47 In office 8 No
Zhongxiong director
Independent
Zhan Weizai M 61 In office 8 No
director
Independent
Song Ming F 47 In office 8 No
director
Wei Yuexing M 57 Vice president In office 101.04 No
Dong Gelin M 47 Vice president In office 67.25 No
Secretary of the
Ye Zhiqing M 51 In office 82 No
Board
67Annual Report 2025 of China Fangda Group Co. Ltd.
Total -- -- -- -- 904.27 --
Basis for performance evaluation underlying the
Performance and results of senior management are
actual compensation received by all directors and
evaluated based on the achievement of annual
senior management as of the end of the reporting
operational targets.period
The Company's Board Compensation and Evaluation
Status of performance evaluations underlying the
Committee is responsible for evaluating directors
actual compensation received by all directors and
and senior management primarily based on the
senior management as of the end of the reporting
Company's annual performance and individual job
period
responsibilities.Deferred payment arrangements for the actual
compensation received by all directors and senior Inapplicable
management as of the end of the reporting period
Clawback or forfeiture provisions applicable to the
actual compensation received by all directors and
Inapplicable
senior management as of the end of the reporting
period
Other matters
□ Applicable □ Inapplicable
V. Performance of Duties by Directors During the Reporting Period
1. Attendance of Directors at Board and Shareholders' Meetings
Attendance of directors at board meetings and shareholders' meetings
Time of
Number of Number of Number of
board Number of Absent for
board board shareholde
Name of meetings board Presented two
meetings meetings rs'
director should meetings by telecom consecutiv
attended not meetings
have attended e meetings
by proxy attended attended
attended
Xiong
3 3 0 0 0 No 1
Jianming
Xiong Xi 3 3 0 0 0 No 1
Xiong
3 3 0 0 0 No 1
Jianwei
Lin Kebin 3 3 0 0 0 No 1
Cao
3 1 2 0 0 No 1
Zhongxiong
Zhan
3 1 2 0 0 No 1
Weizai
Song Ming 3 1 2 0 0 No 1
Statement for absence for two consecutive board meetings
Inapplicable
2. Objection raised by directors
Any objection raised by directors against the Company's related issues
?Yes?□No
68Annual Report 2025 of China Fangda Group Co. Ltd.
Directors made no objection on related issued of the Company in the report period.
3. Other statement for performance of directors
Adoption of suggestion proposed by directors
□ Yes □ No
Statement for suggestion adopted or not by the Company
The directors of the Company strictly comply with the provisions of laws and regulations such as the
Company Law Securities Law Measures for the Administration of Independent Directors of Listed Companies
Guidelines for Corporate Governance of Listed Companies Shenzhen Stock Exchange Listing Rules Articles
of Association and other relevant company systems. They fulfill their responsibilities in accordance
with the law. During the reporting period the directors of the Company attended the meetings of the
Board of Directors and expressed their views and in-depth discussions on various proposals submitted to
the board of directors for consideration made suggestions for the healthy development of the Company
fully considered the interests and demands of minority shareholders when making decisions and
effectively strengthened the scientificity and feasibility of the decision-making of the board of
directors. At the same time the directors of the Company actively participate in relevant training
improve their ability to perform their duties actively pay attention to the company's operation and
management information financial status and major events and promote the sustainable stable and
healthy development of the Company's production and operation. The independent directors have diligently
performed their duties and carefully reviewed various resolutions of the Board of Directors playing an
active role in safeguarding the interests of the Company and minority shareholders.VI. Activities of the Board's Specialized Committees During the Reporting
Period
Number Important Other Details
Commit
Membersh of opinions and perform of
tee Date Meeting content
ip meeting suggestions put ance of objecti
name
s held forward duties ons
Heard and considered:
1. Review of the After full
Company's production communication
and operation in and discussion
18 April 2025
Xiong 2024; 2. The all proposals
Develo Jianming Company's 2025 annual were unanimously
pment Xiong production and passed.Strate Xi Cao operation work plan.
2
gy Zhongxio Listened to and
Commit ng reviewed the review
After full
tee Xiong of the Company's
communication
Jianwei production and
August 21 and discussion
operation in the
2025 all proposals
first half of 2025
were unanimously
and the main work in
passed.the second half of
2021.
Audit Zhan 4 Listened to and The financial
Commit Weizai 14 April 2025 reviewed the and accounting
tee Song financial statements report of the
69Annual Report 2025 of China Fangda Group Co. Ltd.
Ming of the Company in Company for 2024
Xiong 2024 after the has been
Jianwei preliminary opinions prepared in
issued by the annual accordance with
audit accountant. the new
accounting
standards for
business
enterprises and
relevant
financial
regulations of
the Company
which truly
reflects the
financial status
of the Company
as of December
31 2024 and the
operating
results and cash
flow in 2024. It
is agreed to
determine the
final financial
report for 2024
on this basis.The committee heard a
report from RSM China
Certified Public
Accountants LLP on
the Company's 2024
annual audit
reviewed the
Company's 2024
Financial Work
Report and
deliberated and After thorough
approved the discussion the
following proposals: committee
1. Audited 2024 unanimously
Annual Financial agreed to submit
18 April 2025 Statements; Proposals 1
2. Proposal on Asset through 5 to the
Impairment Provisions Board of
for 2024; Directors for
3. Proposal on further
Appointment of the deliberation.
2025 External
Auditor;
4. Unaudited First-
Quarter 2025
Financial Statements;
5. 2024 Internal
Control Self-
Assessment Report;
6. 2024 Internal
Audit Work Report;
70Annual Report 2025 of China Fangda Group Co. Ltd.
7. 2025 Internal
Audit Work Plan.The committee heard
the 2025 Interim
Financial Work Report
and the Interim
Internal Audit Work
Report and
deliberated and After thorough
approved the discussion the
following proposals: committee
1. Proposal on unanimously
August 21 Interim Asset agreed to submit
2025 Impairment Provisions Proposals 1 and
for the First Half of 2 to the Board
2025; of Directors for
2. Unaudited Interim further
Financial Statements deliberation.for the First Half of
2025;
3. Interim Internal
Audit Work Report for
the First Half of
2025.
The committee After full
deliberated and communication
approved the and discussion
following: the proposal was
1. Unaudited Third- unanimously
October 27 Quarter 2025 adopted and
2025 Financial Statements; agreed to be
2. Proposal on submitted to the
Continuing Futures board of
Hedging and Foreign directors of the
Exchange Derivatives Company for
Transactions. deliberation.During 2024 the
Company's
directors and
senior
management
diligently and
conscientiously
fulfilled their
Remune
Song The proposal on the duties and
ration
Ming remuneration of successfully
and
Xiong directors and senior achieved the
Assess 1 18 April 2025
Xi Cao managers in 2024 was Company's 2024
ment
Zhongxio considered and operational
Commit
ng adopted. targets and
tee
other assigned
tasks. The
compensation
received by the
Company's
directors and
senior
management in
71Annual Report 2025 of China Fangda Group Co. Ltd.
2024 complied
with the
Company's
compensation
management
policies for
directors and
senior
management.VII. Work of the Audit Committee
Whether the Audit Committee identified any risks at the Company during its supervisory activities in the
reporting period
□ Yes □ No
The Audit Committee raised no objections to the matters supervised during the reporting period.VIII. Employee Information
1. Staff number professional composition and education
Staff number of the parent at the end of the
34
reporting period
Number of on-the-job employees of major
subsidiaries at the end of the reporting period 2915
(person)
Total number of active employees at the end of the
2949
reporting period (person)
Number of employees receiving remuneration in the
2949
period
Resigned and retired staff number to whom the
parent and major subsidiaries need to pay 0
remuneration
Professional composition
Categories of professions Number of people
Production 1513
Sales & Marketing 133
Technicians 1049
Finance & Accounting 61
Administration 193
Total 2949
Education
Categories of education Number of people
High school or below 1192
College diploma 714
Bachelor 996
Master's degree 45
Doctor's degree 2
Total 2949
72Annual Report 2025 of China Fangda Group Co. Ltd.
2. Remuneration policy
Staff remuneration policy: The Company's staff remuneration comprises post wage performance wage
allowance and annual bonus. The Company has set up an economic responsibility assessment system according
to the annual operation target and responsibility indicators for all departments. The performance wage is
determined by the economic indicators management indicators optimization indicators and internal control.The annual bonus is determined by the Company's annual profit and fulfillment of targets set for various
departments. The staff remuneration and welfare will be adjusted according to the Company's business
operation and changes in the local standard of living and price index.Since 2008 the Company has been implementing the Regulations on Paid Annual Leave for Employees (State Council Order
No. 514) issued by the State Council. All employees of the Company are entitled to paid annual leave in accordance with these
regulations.
3. Training program
Staff training plan: The Company has paid continuous attention to training and development of the staff
and introduces innovative learning as part of the long-term strategy. We provide training programs through
different channels and in different fields for different employees will help them fulfill their works
including new staff training on-the-job training operation and management training programs. These
programs have largely elevated capabilities of the staff and underpin the success of the Company.
4. Labor outsourcing
□ Applicable □ Inapplicable
Total number of hours of labor outsourcing 12390289.19
Total remuneration paid for labor outsourcing (RMB) 475816842.18
IX. Profit Distribution and Conversion of Capital Reserve into Share Capital
Establishment implementation or adjustment of profit distribution policies especially the cash dividend
policy during the report period
□ Applicable □ Inapplicable
During the report period the Company implemented the profit distribution plan for 2024. At the 2024
Annual General Meeting held on May 12 2025 the Company's 2024 profit distribution plan was approved as
follows: based on the total share capital of 1073874227 shares as of the close of business on the record
date for the implementation of the profit distribution plan the Company will distribute a cash dividend of
RMB0.50 (tax inclusive) per 10 shares to all shareholders amounting to a total cash distribution of
RMB53693711.35. No bonus shares will be issued and no conversion of capital reserve into share capital
will be carried out.The Company attaches importance to the reasonable return to investors implements a continuous and
stable profit distribution policy the formulation and implementation of the profit distribution policy
comply with the relevant provisions of the Articles of Association and the requirements of the resolutions
73Annual Report 2025 of China Fangda Group Co. Ltd.
of the General Meeting of Shareholders the dividend standard and proportion are clear and clear the
relevant decision-making procedures and mechanisms are complete the independent directors perform their
duties and play their due role and the company's profit distribution plans are submitted to the General
Meeting of Shareholders for consideration The profit distribution policy is compliant and transparent.Small and medium-sized shareholders have the opportunity to fully express their opinions and appeals and
their legitimate rights and interests have been fully protected.Explanation of Cash Dividend Distribution Policies
Comply with the Articles of Association or
resolution made at the General Shareholders' Yes
Meeting
Clear and definite distribution standard and
Yes
proportion
Decision-making procedure and mechanism Yes
Independent directors fulfill their duties Yes
If the Company does not distribute cash dividends
specific reasons should be disclosed as well as
Yes
the measures to be taken next to enhance investor
returns:
Middle and small shareholders express their
opinions and claims. There rights are well Yes
protected.Cash dividend distribution policies are adjusted or
Inapplicable
revised according to law
The company made profits during the reporting period and the profit available to shareholders of the
parent company was positive but no cash dividend distribution plan was proposed
□ Applicable □ Inapplicable
Profit Distribution and Reserve Capitalization in the Report Period
□ Applicable □ Inapplicable
The Company does not plan to distribute cash dividends issue bonus shares or convert capital reserve
into share capital for the year.X. Share incentive schemes staff shareholding program or other incentive
plans
□ Applicable □ Inapplicable
There is no share incentive schemes staff shareholding program or other incentive plans in the report
period
XI. Establishment and Implementation of Internal Control Systems During the
Reporting Period
1. Construction and implementation of internal control
The Company has established and improved its internal control system in accordance with the Basic
Norms for Enterprise Internal Control and its supporting guidelines as well as other internal control
74Annual Report 2025 of China Fangda Group Co. Ltd.
supervision requirements combined with the actual situation of the company. The risk internal control
management organizational system of the company is jointly composed of the Audit Committee and the
Internal Audit Department which supervises and evaluates the Company's internal control management
improves the Company's standardized operation level and promotes the healthy and sustainable development
of the Company. The 2025 Internal Control Self Evaluation Report disclosed by the Company on
http://www.cninfo.com.cn truthfully and accurately reflects the actual situation of the Company's
internal control. During the reporting period the Company did not have any significant deficiencies in
internal control.
2. Major problems in internal control discovered in the report period
□ Yes □ No
XII. Management and Control of Subsidiaries During the Reporting Period
Problems
Follow up
Integration Integration encountered Solutions Solution
Company solution
plan progress in taken progress
plan
integration
Inapplicable None None None None None None
Abnormalities exist in the management and control of subsidiaries.□ Yes □ No
XIII. Internal Control Evaluation Report or Internal Control Audit Report
1. Internal control report
Date of disclosure of the
internal control evaluation 08 April 2026
report
Disclosure of the internal
www.cninfo.com.cn
control evaluation report
Percentage of assets in the
evaluation scope in the total
96.65%
assets in the consolidated
financial statements
Percentage of operation income in
the evaluation scope in the total
99.20%
operation income in the
consolidated financial statements
Standard
Type Financial report Non-financial report
1. The following problems are I. The following condition
considered major problems: 1. indicates significant problems in
Non-effective control the internal control of non-
Standard environment; 2. corrupt practice financial reports: 1. Serious
by directors and senior violation against national laws
management causing substantial regulations or specifications; 2.loss and impacts for the Company; Serious business system problems
75Annual Report 2025 of China Fangda Group Co. Ltd.
3. Substantial mistakes in the and system ineffectiveness; 3.
financial statements in the Major or important problems
period discovered by the CPA cannot be corrected; 4. Lack of
which are not discovered by the internal control and poor
internal control; 4. Ineffective management; 5. Loss of management
supervision of the internal personnel or key employees; 6.control by the Company's auditing Safety and environmental
department 2. The following accidents that cause major
problems are considered adverse impacts; 7. Other
significant problems: 1 situations that cause major
accounting policies are selected adverse impacts on the Company.and used without complying to II. The following situations
widely accepted accounting indicate that there may be
standards; 2. No anti-corrupt and significant problems with the
important balance system and internal control: 1. business
control measures are taken; 3. system problems and system
Separate or multiple problems in ineffectiveness; 2. Major or
the preparation of financial important problems cannot be
reports which are serious enough corrected; 3. Other situations
to affecting the truthfulness and that cause major adverse impacts
accuracy of the reports; no on the Company III. The following
control system is established and situation indicate likely normal
no related compensation system is problems in the internal control:
implemented for accounts of 1. Problems in the general
irregular or special transactions business system; 2. Normal
3. Other problems are considered problems in the internal control
normal problems. supervision cannot be correctly
promptly.
1. Significant problem: 1
mistakes affecting 5% and more of
the pre-tax profit and more than
RMB5 million in the consolidated
statements; 2. Mistakes affecting
5% and more of the consolidated
assets and more than RMB5 million
See the recognition standard of
2. Important problem: 1. Mistakes
Standard the internal control problems for
affecting 1%-5% of the pre-tax
financial statements
profit in the consolidated
statements; 2. Mistakes affecting
1%-5% the consolidated assets.
III. Normal problem: 1. Mistakes
affecting less than 1% of the
pre-tax profit and total assets
of the consolidate statements.Significant problems in financial
0
statements
Significant problems in non-
0
financial statements
Important problems in financial
0
statements
Important problems in non-
0
financial statements
2. Internal control audit report
□ Applicable □ Inapplicable
76Annual Report 2025 of China Fangda Group Co. Ltd.
Comments in the internal control audit report
We believe that China Fangda Group has maintained effective internal control on financial reports
according to Basic Regulations on Enterprise Internal Control and related regulations on December 31
2025.
Disclosure of internal auditor's report Disclosed
Date of disclosure of the internal control audit
08 April 2026
report
Source of disclosure of the internal control audit
www.cninfo.com.cn
report
Opinion type Standard opinion auditor's report
Problems in non-financial statements No
Non-standard internal control audit report by the CFA
□ Yes □ No
Consistency between the internal control audit report and self-evaluation report
□ Yes □ No
Whether a non-standard internal control audit opinion was issued for the reporting period or the prior
year
□ Yes □ No
XIV. Self-Inspection and Rectification under the Listed Company Governance
Special Action
Inapplicable
XV. Environmental Information Disclosure
Whether the listed company and its major subsidiaries are included in the list of enterprises required by
law to disclose environmental information
□ Yes □ No
XVI. Corporate Social Responsibility
The Company remains true to its founding mission places great importance on environmental and
social sustainability and actively fulfills its corporate social responsibilities. In 2025 the
Company has earnestly performed social responsibilities in regulating
governance and operation protecting the rights and interests of shareholders
and creditors safe production environmental protection energy conservation
and emission reduction protecting the rights and interests of employees
protecting the rights and interests of suppliers customers and consumers
public relations and social public welfare undertakings. See cninfo.com
http://www.cninfo.com.cn for the 2025 social responsibility report of China Fangda
Group Co. Ltd.
77Annual Report 2025 of China Fangda Group Co. Ltd.
XVII. Efforts to Consolidate and Expand Achievements in Poverty Alleviation
and Advance Rural Revitalization
While creating economic value the Company actively fulfills its corporate social responsibilities
and promotes sustainable social development. By making positive examples in the fields of ecological
environmental protection and promoting social development the Company has demonstrated the
responsibility of an industry leader. The Company has carried out industrial support in Guangdong
Shaanxi Guizhou Jiangxi and Tibet helping rural areas to plant cash crops such as tea mushrooms and
lilies according to local conditions supporting rural collective breeding industry projects
constructing greenhouse photovoltaic power stations distributed photovoltaic power stations and other
rural industrial "blood-creation" projects and fostering new impetus to the development of rural economy
helping to build a thriving industry and ecological development. Helping to build a beautiful countryside
in the new era of prosperous industry ecological livability civilized countryside effective governance
and affluent life which has achieved good social effects and gained high praise from all walks of life.In addition the Company has been actively involved in various public welfare activities including
public education public health rural medical care disaster relief environmental protection rural
revitalization and many other aspects. For many consecutive years the Company has been awarded honors
including "National (Shenzhen) Outstanding Foreign-Invested Enterprise – Green & Carbon Reduction
Promotion Award" and "Outstanding Enterprise in Fulfilling Social Responsibility."
78Annual Report 2025 of China Fangda Group Co. Ltd.
Chapter 5 Significant Events
I. Performance of promises
1. Commitments that have been fulfilled and not fulfilled by actual controller
shareholders related parties acquirers of the Company
□ Applicable □ Inapplicable
There is no commitment that has not been fulfilled by actual controller shareholders related parties
acquirers of the Company
2. Explanation and reason of profit forecasts on assets or projects that remain in the
report period
□ Applicable □ Inapplicable
3. Company's Involvement in Performance Commitments
□ Applicable □ Inapplicable
II. Non-operating capital use by the controlling shareholder or related
parties in the reporting term
□ Applicable □ Inapplicable
The controlling shareholder and its affiliates occupied no capital for non-operating purpose of the
Company during the report period.III. Incompliant external guarantee
□ Applicable □ Inapplicable
The Company made no incompliant external guarantee in the report period.IV. Description of the board of directors on the latest "non-standard audit
report"
□ Applicable □ Inapplicable
V. Explanations by the Board of Directors and Independent Directors (if any)
Regarding the Accounting Firm's "Non-Standard Audit Report" for the Current
Reporting Period
□ Applicable □ Inapplicable
79Annual Report 2025 of China Fangda Group Co. Ltd.
VI. Description of changes in accounting policies accounting estimates or
correction of major accounting errors compared with the financial report of
the previous year
□ Applicable □ Inapplicable
In RMB
Amount for prior
Amount for current year
year
Accounting item Before After Adjustment process
adjustme adjustme Before adjustment After adjustment
nt nt
With the development of
Account businesses across various
897997432.97885516557.23
receivable industries the Company
has continuously refined
its customer risk
Contract assets management for different
(including sectors and enhanced its
portions
2124278409.65 2113866663.17 management capabilities.
reclassified to Based on a
other non- comprehensive
current assets) assessment of the
composition of
Notes Not applicable. 134350222.65 121778063.00 receivables (including
receivable This change in notes receivable accounts
accounting receivable contract assets
estimate is and other receivables)
Other applied related to curtain wall
123484843.69120173307.70
receivables prospectively platform screen door new
under the materials new energy
prospective and commercial real
application method estate businesses as well
Credit
and does not -224180268.08 -252544839.46 as differences in customer
impairment loss
require risk profiles and historical
retrospective credit loss experience the
adjustment. Company has changed its
Asset accounting estimates. This
-20214366.04-30626112.52
impairment loss change is made prudently
in accordance with
Accounting Standards for
Business Enterprises No.
22—Recognition and
Measurement of Financial
Instruments No. 28—
Total profit -589488687.06 -628265004.92 Changes in Accounting
Policies Changes in
Accounting Estimates and
Correction of Errors and
other relevant provisions
80Annual Report 2025 of China Fangda Group Co. Ltd.
and is aligned with the
actual business
characteristics and
operating conditions in
order to present the
Company's financial
position and operating
results more objectively
and fairly.VII. Statement of change in the financial statement consolidation scope
compared with the previous financial report
□ Applicable □ Inapplicable
During the current period the Company's consolidated scope expanded through the establishment of two new
subsidiaries: Fangda Facade (NSW) Pty Ltd (Curtain Wall Sydney Company) and FANGDA FACADE CONTRACTING
L.L.C (Curtain Wall UAE Company).VIII. Engaging and dismissing of CPA
CPA engaged currently
Domestic public accountants name RSM Thornton (limited liability partnership)
Remuneration for the domestic public accountants
150
(in RMB10000)
Consecutive years of service by the domestic public
7
accountants
Name of certified accountants of the domestic
Zhou Junchao Yang Yang
public accountants
Zhou Junchao has provided consecutive audit
Consecutive years of service by the domestic public
services for 3 years and Yang Yang has provided
accountants
audit services for 1 year.Overseas public accountants name (if any) None
Remuneration for the overseas public accountants
0
(in RMB10000)
Consecutive years of service by the overseas public
None
accountants (if any)
Name of certified accountants of the overseas
None
public accountants (if any)
Consecutive years of service by the domestic public
None
accountants
Whether the CPA is replaced
□ Yes □ No
Engaging of internal control audit CPA financial advisor and sponsor
□ Applicable □ Inapplicable
During the reporting period the Company continued engaging RSM China (limited liability partnership) as the financial statement
and internal control auditing CPA with a fee of RMB1.5 million.
81Annual Report 2025 of China Fangda Group Co. Ltd.
IX. Delisting after disclosure of annual report
□ Applicable □ Inapplicable
X. Bankruptcy and capital reorganizing
□ Applicable □ Inapplicable
The Company has no bankruptcy or reorganization events in the report period.XI. Significant lawsuit and arbitration
□ Applicable □ Inapplicable
The Company has no significant lawsuit or arbitration affair in the report period.XII. Punishment and rectification
□ Applicable □ Inapplicable
The Company received no penalty and made no correction in the report period.XIII. Credibility of the Company controlling shareholder and actual
controller
□ Applicable □ Inapplicable
The Company and its controlling shareholders and actual controllers do not fail to perform the effective
judgment of the court and the debts with a large amount are not paid off when due.XIV. Material related transactions
1. Related transactions related to routine operation
□ Applicable □ Inapplicable
The Company made no related transaction related to daily operating in the report period.
2. Related transactions related to assets transactions
□ Applicable □ Inapplicable
The Company made no related transaction of assets or equity requisition and sales in the report period.
3. Related transactions related to joint external investment
□ Applicable □ Inapplicable
The Company made no related transaction of joint external investment in the report period.
4. Related credits and debts
□ Applicable □ Inapplicable
82Annual Report 2025 of China Fangda Group Co. Ltd.
The Company had no related debt in the report period.
5. Transactions with related financial companies
□ Applicable □ Inapplicable
There is no deposit loan credit or other financial business between the company and the related
financial company.
6. Transactions between financial companies controlled by the company and related parties
□ Applicable □ Inapplicable
There is no deposit loan credit or other financial business between the financial company controlled by
the company and its related parties.
7. Other major related transactions
□ Applicable □ Inapplicable
The Company has no other significant related transaction in the report period.XV. Significant contracts and performance
1. Asset entrusting leasing contracting
(1) Asset entrusting
□ Applicable □ Inapplicable
The Company made no custody in the report period.
(2) Contracting
□ Applicable □ Inapplicable
The Company made no contract in the report period
(3) Leasing
□ Applicable □ Inapplicable
There are no significant leasing situations during the reporting period.
2. Significant guarantee
□ Applicable □ Inapplicable
In RMB10000
External guarantees made by the Company and subsidiaries (exclude those made for subsidiaries)
Actual
Guarant Counter
Date of Guarant amount Type of Collate Complet
ee Actual guarant Related
disclos ee of guarant ral (if Term ed or
provide date ee (if party
ure amount guarant ee any) not
d to any)
ee
83Annual Report 2025 of China Fangda Group Co. Ltd.
None
Guarantee provided to subsidiaries
Actual
Guarant Counter
Date of Guarant amount Type of Collate Complet
ee Actual guarant Related
disclos ee of guarant ral (if Term ed or
provide date ee (if party
ure amount guarant ee any) not
d to any)
ee
since
engage
Fangda of
Constru 22 Decembe Joint contrac
44086.
ction April 101000 r 21 liabili None None t to 3 No Yes
22
Technol 2025 2025 ty years
ogy upon
due of
debt
since
engage
Fangda of
Constru 21 Joint contrac
April 9770.0
ction 35000 April liabili None None t to 3 No Yes
220248
Technol 2025 ty years
ogy upon
due of
debt
since
engage
Fangda of
Constru 22 Jul. Joint contrac
18540.
ction April 50000 16 liabili None None t to 3 No Yes
34
Technol 2025 2025 ty years
ogy upon
due of
debt
since
engage
Fangda of
Constru 22 Decembe Joint contrac
ction April 60000 r 12 59700 liabili None None t to 3 No Yes
Technol 2025 2025 ty years
ogy upon
due of
debt
since
engage
Fangda of
Constru 22 Jul. Joint contrac
ction April 15000 01 0 liabili None None t to 3 No Yes
Technol 2025 2025 ty years
ogy upon
due of
debt
Fangda since
Constru 22 Joint engage
August
ction April 40000 4058 liabili None None of No Yes
72025
Technol 2025 ty contrac
ogy t to 3
84Annual Report 2025 of China Fangda Group Co. Ltd.
years
upon
due of
debt
since
engage
Fangda of
Constru 22 28 Joint contrac
ction April 4900 April 4900 liabili None None t to 3 No Yes
Technol 2025 2025 ty years
ogy upon
due of
debt
since
engage
Fangda of
Constru 27 Joint contrac
April
ction 30000 March 0 liabili None None t to 3 No Yes
22024
Technol 2025 ty years
ogy upon
due of
debt
since
engage
Fangda of
Constru 22 Decembe Joint contrac
ction April 25000 r 23 3500 liabili None None t to 3 No Yes
Technol 2025 2025 ty years
ogy upon
due of
debt
since
engage
Fangda of
Constru Februar August Joint contrac
3097.6
ction y 28 11150 16 liabili None None t to 3 No Yes
8
Technol 2023 2023 ty years
ogy upon
due of
debt
since
engage
Fangda of
Constru 22 Decembe Joint contrac
6016.9
ction April 20000 r 9 liabili None None t to 3 No Yes
9
Technol 2025 2025 ty years
ogy upon
due of
debt
since
engage
Fangda of
Constru January Joint contrac
April 12780.ction 39000 14 liabili None None t to 3 No Yes
2202451
Technol 2025 ty years
ogy upon
due of
debt
85Annual Report 2025 of China Fangda Group Co. Ltd.
since
engage
Fangda of
Constru January Joint contrac
April
ction 25000 10 21000 liabili None None t to 3 No Yes
22024
Technol 2025 ty years
ogy upon
due of
debt
since
engage
Fangda of
Constru Decembe Joint contrac
April
ction 48000 r 15 13000 liabili None None t to 3 No Yes
22024
Technol 2024 ty years
ogy upon
due of
debt
since
engage
Fangda of
Constru Novembe Joint contrac
April
ction 20000 r 4 4800 liabili None None t to 3 No Yes
22024
Technol 2024 ty years
ogy upon
due of
debt
since
engage
of
22 Decembe Joint contrac
Fangda 16997.April 35800 r 21 liabili None None t to 3 No Yes
Zhiyuan 68
2025 2025 ty years
upon
due of
debt
since
engage
of
21 Joint contrac
Fangda April 9782.7
20000 April liabili None None t to 3 No Yes
Zhiyuan 2 2024 9
2025 ty years
upon
due of
debt
since
engage
of
Februar Novembe Joint contrac
Fangda 5484.4
y 28 15475 r 21 liabili None None t to 3 No Yes
Zhiyuan 5
2023 2023 ty years
upon
due of
debt
since
22 Jul. Joint
Fangda 3119.6 engage
April 15000 16 liabili None None No Yes
Zhiyuan 4 of
2025 2025 ty
contrac
86Annual Report 2025 of China Fangda Group Co. Ltd.
t to 3
years
upon
due of
debt
since
engage
of
22 Jul. Joint contrac
Fangda
April 10000 01 356.02 liabili None None t to 3 No Yes
Zhiyuan
2025 2025 ty years
upon
due of
debt
since
engage
of
22 Decembe Joint contrac
Fangda 2342.1
April 10000 r 9 liabili None None t to 3 No Yes
Zhiyuan 8
2025 2025 ty years
upon
due of
debt
since
engage
of
22 Joint contrac
Fangda August
April 15000 234.64 liabili None None t to 3 No Yes
Zhiyuan 7 2025
2025 ty years
upon
due of
debt
since
engage
of
Decembe Joint contrac
Fangda April
18000 r 15 544.57 liabili None None t to 3 No Yes
Zhiyuan 2 2024
2024 ty years
upon
due of
debt
since
engage
of
Fangda Decembe 02 Joint contrac
Propert r 23 110000 April 108000 liabili None None t to 3 No Yes
y 2023 2025 ty years
upon
due of
debt
since
engage
Fangda
of
Intelli Decembe 22 Joint
contrac
gent r 23 30000 Februar 28000 liabili None None No Yes
t to 3
Manufac 2023 y 2024 ty
years
turing
upon
due of
87Annual Report 2025 of China Fangda Group Co. Ltd.
debt
since
engage
of
Fangda
27 Joint contrac
New April
8500 Februar 1600 liabili None None t to 3 No Yes
Materia 2 2024
y 2025 ty years
l
upon
due of
debt
since
engage
of
Donggua
22 Jul. Joint contrac
n New
April 5000 01 1400 liabili None None t to 3 No Yes
Materia
2025 2025 ty years
ls
upon
due of
debt
since
engage
of
21 Joint contrac
Fangda April
700 April 8.85 liabili None None t to 3 No Yes
Yunzhu 2 2024
2025 ty years
upon
due of
debt
since
engage
of
25 Joint contrac
Fangda April
1000 March 600 liabili None None t to 3 No Yes
Yunzhu 2 2024
2025 ty years
upon
due of
debt
since
engage
of
22 June Joint contrac
Fangda 6473.3
April 7000 30 liabili None None t to 3 No Yes
Zhijian 7
2025 2025 ty years
upon
due of
debt
From
the
date
the
letter
Decembe 17 Joint
Fangda 31896. 31896. of
r 23 Februar liabili None None No Yes
Zhiyuan 02 02 guarant
2023 y 2024 ty
ee is
issued
until
the
complet
88Annual Report 2025 of China Fangda Group Co. Ltd.
ion of
the
project
contrac
t
From
the
date
the
letter
of
guarant
Decembe 17 Joint ee is
Fangda 24885. 24885.r 23 Februar liabili None None issued No Yes
Zhiyuan 16 16
2023 y 2024 ty until
the
complet
ion of
the
project
contrac
t
Total of
Total of
guarantee to
guarantee to
subsidiaries
subsidiaries 413700.00 442322.83
actually occurred
approved in the
in the report
report term (B1)
term (B2)
Total of balance
Total of
of guarantee
guarantee to
actually provided
subsidiaries
882306.18 to the 446975.19
approved as of
subsidiaries as
the report term
of end of report
(B3)
term (B4)
Guarantee provided to subsidiaries
Actual
Guarant Counter
Date of Guarant amount Type of Collate Complet
ee Actual guarant Related
disclos ee of guarant ral (if Term ed or
provide date ee (if party
ure amount guarant ee any) not
d to any)
ee
None
Total of guarantee provided by the Company (total of the above three)
Total of Total of
guarantee guarantee
approved in the 413700.00 occurred in the 442322.83
report term report term
(A1+B1+C1) (A2+B2+C2)
Total of Total of
guarantee guarantee
approved as of 882306.18 occurred as of 446975.19
end of report the end of report
term (A3+B3+C3) term (A4+B4+C4)
Ratio of total outstanding guarantee
80.40%
balance (i.e. A4 + B4 + C4) to the
89Annual Report 2025 of China Fangda Group Co. Ltd.
Company's net assets
Including:
Guarantees provided to the
shareholders substantial
0.00
controllers and the related parties
(D)
Guarantee provided directly or
indirectly to objects with over 70% 1400.00
of liability on asset ratio (E)
Amount of guarantee over 50% of the
169010.93
net asset (F)
Total of the above 3 (D+E+F) 169010.93
Note of compound guarantee
None
3. Entrusted cash capital management
(1) Wealth management
□ Applicable □ Inapplicable
Wealth management during the reporting period
In RMB10000
Outstanding balance of
entrusted wealth Due balance to be
Product category Risk characteristics
management during the recovered
reporting period
Bank financial products Low risk 32359.99 0
Specific circumstances where the Company as a sole principal entrusts financial institutions to conduct
asset management or invests in high-risk entrusted wealth management products with lower safety and
poorer liquidity
□ Applicable □ Inapplicable
(2) Trusted loans
□ Applicable □ Inapplicable
The Company borrowed no trust loan in the report period.
4. Other significant contract
□ Applicable □ Inapplicable
The Company entered into no other significant contract in the report.XVI. Use of Raised Funds
□ Applicable □ Inapplicable
The Company used no raised capital in the report period.
90Annual Report 2025 of China Fangda Group Co. Ltd.
XVII. Explanation of Other Material Matters
□ Applicable □ Inapplicable
There are no other significant matters requiring explanation during the reporting period.XVIII. Material Matters Relating to the Company's Subsidiaries
□ Applicable □ Inapplicable
91Annual Report 2025 of China Fangda Group Co. Ltd.
Chapter VI Changes in Share Capital and Shareholders
I. Changes in shares
1. Changes in shares
In share
Before the change Change (+-) After the change
Issued Transfer
Proporti Bonus Proporti
Quantity new red from Others Subtotal Quantity
on shares on
shares reserves
I.Shares
with
trade 386104 386104
0.36%000000.36%
restrict 3 3
ion
conditio
ns
1.
State-
owned
shares
2.
State-
owned
legal
person
shares
3.
Other 386104 386104
0.36%000000.36%
domestic 3 3
shares
Incl
uding:
Shares
held by
domestic
legal
persons
Dome
stic
386104386104
natural 0.36% 0 0 0 0 0 0.36%
33
person
shares
4.
Shares
held by
foreign
investor
s
92Annual Report 2025 of China Fangda Group Co. Ltd.
Incl
uding:
Shares
held by
foreign
legal
persons
Dome
stic
natural
person
shares
II.Unrestri 107001 107001
99.64%0000099.64%
cted 3184 3184
shares
1.
Common 675854 675854
62.94%0000062.94%
shares 429 429
in RMB
2.
Foreign
shares 394158 394158
36.70%0000036.70%
in 755 755
domestic
market
3.
Foreign
shares
in
overseas
market
4.
Others
III.Total of 107387 107387
100.00%00000100.00%
capital 4227 4227
shares
Reasons
□ Applicable □ Inapplicable
Approval of the change
□ Applicable □ Inapplicable
Share transfer
□ Applicable □ Inapplicable
Impacts on financial indicators including basic and diluted earnings per share net assets per share
attributable to common shareholders of the Company in the most recent year and period
□ Applicable □ Inapplicable
Others that need to be disclosed as required by the securities supervisor
□ Applicable □ Inapplicable
93Annual Report 2025 of China Fangda Group Co. Ltd.
2. Changes in conditional shares
□ Applicable □ Inapplicable
II. Share placing and listing
1. Securities issuance (excluding preference shares) during the report period
□ Applicable □ Inapplicable
2. Statement of changes in share number and shareholder structure assets and liabilities
structure
□ Applicable □ Inapplicable
3. Current employees' shares
□ Applicable □ Inapplicable
III. Shareholders and the substantial controller of the Company
1. Shareholders and shareholding
In share
Total
number
of
ordinar
Number of
y share
sharehold
Number of shareho
ers of Total number of
sharehold lders
preferred shareholders of
ers of at the
stocks of preference shares of
common end of
which which voting rights
shares at 42025 the 43351 0 0
voting resumed at the end of
the end month
rights the month before the
of the before
recovered disclosure date of
report the
in the the annual report
period disclos
report
ure
period
date of
the
annual
report
Shareholdings of shareholders holding more than 5% or the top 10 shareholders (excluding shares lent
through refinancing)
Number of Amount of Pledge marking or
Shareho shares held Change in shares freezing
Name of Nature of
lding at the end the Condition without
sharehold sharehold
percent of the reporting al shares sales
er er Share
age reporting period restricti Quantitystatus
period on
Shenzhen Domestic 11.11% 119332846 0 0 1193328 Inapplica 0
94Annual Report 2025 of China Fangda Group Co. Ltd.
Banglin non-state 46 ble
Technolog legal
ies person
Developme
nt Co.Ltd.Shengjiu Foreign
1152499 Inapplica
Investmen legal 10.73% 115249953 5133677 0 0
53 ble
t Ltd. person
Domestic
- 4593873 Inapplica
Fang Wei natural 4.28% 45938739 0 0
4726700 9 ble
person
Domestic
1222000 Inapplica
Xu Lei natural 1.14% 12220000 5900000 0 0
0 ble
person
Domestic
Zhou Inapplica
natural 0.91% 9764210 -160000 0 9764210 0
Youming ble
person
Domestic
Inapplica
Xu Zhe natural 0.84% 9000000 2240000 0 9000000 0
ble
person
Domestic
Inapplica
Hu Zhexi natural 0.62% 6623850 6623850 0 6623850 0
ble
person
Shenwan
Hongyuan
Foreign
Securitie Inapplica
legal 0.55% 5943171 472621 0 5943171 0
s (Hong ble
person
Kong)
Co. Ltd.Domestic
Xiong Inapplica
natural 0.48% 5110257 0 3832693 1277564 0
Jianming ble
person
Domestic
Qu Inapplica
natural 0.41% 4444000 0 0 4444000 0
Chunlin ble
person
A strategic investor
or ordinary legal
person becomes the
Top10 share None
shareholder due a
stock issue (see note
3)
Notes to top ten Among the above shareholders Shenzhen Banglin Technology Development Co. Ltd.shareholder Shengjiu Investment Co. Ltd. and Xiong Jianming are acting in concert. The
relationship or Company is not notified of other action-in-concert or related parties among the
"action in concert" other holders.Description of the
above shareholders
involved in entrusted
None
/ entrusted voting
right and waiver of
voting right
Special explanation
for the existence of None
a repurchase account
95Annual Report 2025 of China Fangda Group Co. Ltd.
among the top 10
shareholders (if any)
(see Note 10)
Shareholding status of the top 10 shareholders without sales restrictions (excluding shares lent through
refinancing senior management locked shares)
Category of shares
Name of shareholder Amount of shares without sales restriction Category
Quantity
of shares
Shenzhen Banglin RMB
1193328
Technologies 119332846 common
46
Development Co. Ltd. shares
Domestica
lly
Shengjiu Investment 1152499
115249953 listed
Ltd. 53
foreign
shares
RMB
4593873
Fang Wei 45938739 common
9
shares
RMB
1222000
Xu Lei 12220000 common
0
shares
RMB
Zhou Youming 9764210 common 9764210
shares
RMB
Xu Zhe 9000000 common 9000000
shares
RMB
Hu Zhexi 6623850 common 6623850
shares
Domestica
Shenwan Hongyuan lly
Securities (Hong 5943171 listed 5943171
Kong) Co. Ltd. foreign
shares
RMB
Qu Chunlin 4444000 common 4444000
shares
Domestica
GUOTAI JUNAN lly
SECURITIES (HONG 4026226 listed 4026226
KONG) LIMITED foreign
shares
No action-in-concert
or related parties
among the top10
Among the above shareholders Shenzhen Banglin Technology Development Co. Ltd.unconditional
Shengjiu Investment Co. Ltd. and Xiong Jianming are acting in concert. The
shareholders and
Company is not notified of other action-in-concert or related parties among the
between the top10
other holders.unconditional
shareholders and the
top10 shareholders
Top-10 common share Fang Wei holds 33402039 shares of the Company through a customer credit
shareholders transaction guarantee securities account with CITIC Securities Co. Ltd.;
participating in Xu Lei holds 12220000 shares of the Company through a customer credit
96Annual Report 2025 of China Fangda Group Co. Ltd.
margin trade transaction guarantee securities account with Guolian Securities Co. Ltd.;
Xu Zhe holds 9000000 shares of the Company through a customer credit
transaction guarantee securities account with Guolian Securities Co. Ltd.;
Hu Zhexi holds 6513850 shares of the Company through the client margin
securities account at China Zhongjin Wealth Securities Co. Ltd.Situation of share lending in refinancing business by shareholders holding more than 5% the top 10
shareholders and the top 10 shareholders of unrestricted circulating shares
□ Applicable □ Inapplicable
Changes due to lending/returning of shares in refinancing business by the top 10 shareholders and the top
10 shareholders of unrestricted circulating shares compared to the previous period
□ Applicable □ Inapplicable
Agreed re-purchasing by the Company's top 10 shareholders of common shares and top 10 shareholders of
unconditional common shares in the report period
□ Yes □ No
No agreed re-purchasing by the Company's top 10 shareholders of common shares and top 10 shareholders of
unconditional common shares in the report period
2. Profile of the controlling shareholders
Shareholder nature: natural person holding
Type of shareholder: legal person
Legal
Name of controlling Date of
representative/resp Organization code Main business
shareholder Establishment
onsible person
Industrial
investment
Shenzhen Banglin developing of
Technologies electronic
Chen Jinwu June 7 2001 914403007298400552
Development Co. products technical
Ltd. consulting
domestic commerce
material trading
Stock ownership of
other domestic and
overseas listed
company controlled None
or whose shares are
held by controlling
shareholders
Changes in the controlling shareholder in the reporting period
□ Applicable □ Inapplicable
No change in the controlling shareholder in the report period
3. Actual controller and persons acting in concert
Nature of actual controller: domestic natural person
Type of actual controller: natural person
Name of substantial Relationship with the Right of residence in
Nationality
controller actual controller another country or
97Annual Report 2025 of China Fangda Group Co. Ltd.
region
Xiong Jianming Himself Chinese Yes
Job and position Served as Chairman of the Company.Profiles of domestic and
overseas listed
The controller held no share in other listed companies in the last ten years.companies in which the
controller held shares
Change in the actual controller in the report period
□ Applicable □ Inapplicable
No change in the actual shareholder in the report period
7. Chart of the controlling relationship
Controlling over the Company by the substantial controller through trust or other asset management
□ Applicable □ Inapplicable
4. The cumulative number of Pledged Shares of the Company's controlling shareholder or
the largest shareholder and its concerted actors accounts for 80% of the Company's shares
□ Applicable □ Inapplicable
5. Other legal person shareholders with over 10% of total shares
□ Applicable □ Inapplicable
6. Conditional decrease of shareholding by controlling shareholder actual controller
reorganizer and other entities
□ Applicable □ Inapplicable
IV. Specific implementation of share repurchase in the reporting period
Progress in the implementation of share repurchase
□ Applicable □ Inapplicable
Progress in the implementation of the reduction of shareholding shares by means of centralized bidding
□ Applicable □ Inapplicable
V. Information Relating to Preference Shares
□ Applicable □ Inapplicable
The Company had no preferred share in the report period.
98Annual Report 2025 of China Fangda Group Co. Ltd.
Chapter VII Information about the Company's Securities
□ Applicable □ Inapplicable
99Annual Report 2025 of China Fangda Group Co. Ltd.
Chapter VIII Financial Statements
I. Auditor's Report
Type Standard opinion auditor's report
Issued on 03 April 2026
Auditor RSM Thornton (limited liability partnership)
Report No. RSM [2026] No.510Z0221
CPA names Zhou Junchao Yang Yang
Auditors' Report
RSM [2026] No.510Z0221
To the shareholders of China Fangda Group Co. Ltd.:
1. Auditors' Opinions
We have audited the financial statements of Fangda Group Co. Ltd. (hereinafter referred to as
Fangda group company) including the consolidated and parent company's balance sheet as of December 31
2025 the consolidated and parent company's income statement consolidated and parent company's cash flow
statement consolidated and parent company's statement of changes in owner's equity and notes to relevant
financial statements in 2025.We believe that Fangda Group has been following with the Enterprise Accounting Standard in
preparing of the Financial Statements. The Financial Statements is reflecting in all important aspects
the financial situation of Fangda Group as of December 31 2025 and the business performance and cash
flow of year 2025.
2. Basis of the Opinions
We carried out the auditing works with compliance to Chinese CPA Auditing Standard The "CPA's
Responsibility for Auditing Financial Statements" section of the audit report further elaborated our
responsibilities under these guidelines. In accordance with the Code of Professional Ethics for Chinese
Certified Public Accountants and the Independence Standards for Chinese Certified Public Accountants we
100Annual Report 2025 of China Fangda Group Co. Ltd.
are independent of China Fangda Group Co. Ltd. and have complied with the provisions of the independence
standards applicable to audits of financial statements of public interest entities while fulfilling our
other ethical responsibilities. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
3. Key Audit Matters
The key audit matters are the matters that we believe are most important for the audit of the
current financial statements based on professional judgment. The response to these matters is based on
the overall audit of the financial statements and the formation of an audit opinion. We do not comment on
these matters separately.Income recognition
For related information disclosure please refer to Note III 26 Note V 43 and Note XV 2 of the
financial statements.
1. Description
In 2025 the operating revenue of Fangda Group is RMB3.377 billion of which the revenue of curtain
wall and metro platform screen door accounts for 93.76% of the total revenue of the Group.Fangda Group's performance obligations related to the construction subcontracting contract include
building curtain wall and metro platform screen door. As the customer can control the commodity under
construction in the process of performance of Fangda group the Company regards it as the performance
obligation within a certain period of time and recognizes the revenue according to the performance
progress. The Company shall determine the performance schedule of 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. Management needs to make a reasonable estimate of the initial total
contract revenue and total contract costs for the Engineering contracting contract and continue to assess
and revise it during the contract implementation process which involves significant accounting estimates
of the management.
101Annual Report 2025 of China Fangda Group Co. Ltd.
Therefore we identify revenue recognition related to construction contracts as key audit matters.
2. Audit response
Our audit procedures for revenue recognition related to construction subcontracting contracts
mainly include:
(1) Understand and evaluate the design of internal control related to management contract and
engineering subcontracting contract budget and revenue recognition and test the effectiveness of key
control implementation.
(2) Obtained a major engineering subcontracting contract verified the contract revenue and
reviewed key contract terms. Check the engineering contracting contract and cost budget information on
which management expects total revenue and estimated total cost.
(3) Obtain the construction subcontracting contract account and project revenue and cost summary
table carry out analytical review on the gross profit of the project and recalculate the performance
progress and revenue in the construction subcontracting contract account to verify its accuracy.
(4) Select samples to check the project engineering details of the main project subcontracted
labor approval forms and the owner's production value approval documents and records to verify the
contract costs incurred.
(5) Select samples to check if the relevant contract costs are recorded in the appropriate
accounting period.
(6) Select a sample to conduct a site inspection of the progress of the project image to verify the
reasonableness of the project's performance schedule.Measurement of fair value of investment real estate
For related information disclosure please refer to Note III 17 Note V 15 Note V 51 and Note XI
of the financial statements.
1. Description
102Annual Report 2025 of China Fangda Group Co. Ltd.
As of Wednesday December 31 2025 the book balance of the investment real estate of Fangda group
which adopts the fair value model for subsequent measurement is RMB5.548 billion accounting for 44.12%
of the total assets. The income from changes in fair value realized in the current period is RMB-
281000000 which has a great impact on the financial indicators of the Group's consolidated statements.
The management of Fangda Group annually employs a third-party assessment agency with relevant
qualifications to evaluate the fair value of the investment real estate. The evaluation adopts the market
comparison method and the income method to comprehensively analyze various factors that affect the real
estate price of the appraisal subject. The assessment of the fair value of investment real estate
involves many estimates and assumptions such as the analysis of the economic environment and future
trends of the real estate where the investment real estate is located discount rates etc. The changes
in estimates and assumptions will have big impacts on the fair value of the investment real estate
evaluated. Therefore we identify the measurement of fair value of investment real estate as a key audit
matter.
2. Audit response
Our audit procedures for the measurement of fair value of investment real estate mainly include:
(1) Assess the competency professional quality independence and objectivity of third-party
assessment agencies employed by the management.
(2) Obtain the assessment report selected major or typical samples and use our real estate
appraisal experts to review and review the assessment methods and assumptions used in the assessment
report and the rationality of the selected key assessment parameters. Check the accuracy and relevance of
the data used by the management in valuation.
(3) Review the measurement presentation and disclosure of fair value of investment real estate in
the financial statements.Measurement of expected credit loss of accounts receivable and contract assets
103Annual Report 2025 of China Fangda Group Co. Ltd.
For related information disclosure please refer to Note III 11 Note V 5 Note V 10 and Note V
21 of the financial statements.
1. Description
As of December 31 2025 the Company's total accounts receivable amounted to RMB1.488 billion with
an allowance for doubtful accounts of RMB602 million; the total contract assets amounted to RMB2.340
billion with an impairment provision of RMB226 million. The combined carrying amount of accounts
receivable and contract assets represented 23.85% of the Company's total assets. Due to the large amount
of accounts receivable and contract assets of Fangda group the management needs to use important
accounting estimation and judgment when determining the expected recoverable amount of accounts
receivable and contract assets and the expected credit loss of accounts receivable and contract assets
is important for financial statements. Therefore we determine the measurement of expected credit loss of
accounts receivable and contract assets as the key audit accounting matters.
2. Audit response
(1) Understand and evaluate the effectiveness of internal control design related to the provision
for bad debts of accounts receivable and provision for impairment of contract assets of Fangda Group and
test the effectiveness of key control operation.
(2) Review the relevant considerations and objective evidence of the management's credit risk
assessment of accounts receivable and contract assets and evaluate whether the management has properly
identified the credit risk characteristics of various accounts receivable.
(3) Review the accrual process of bad debt provision for accounts receivable and impairment
provision for contract assets of the management including: * for accounts receivable and contract
assets that measure expected credit loss based on portfolio evaluate the rationality of the management's
division of portfolio according to credit risk characteristics; Check the measurement model of expected
credit loss and evaluate the rationality of major assumptions and key parameters in the model; Obtain the
comparison table between the aging of accounts receivable and the expected credit loss rate for the whole
duration prepared by the management and test the accuracy and integrity of the data used by the
104Annual Report 2025 of China Fangda Group Co. Ltd.
management and whether the calculation of bad debt reserves is accurate; * For accounts receivable and
contract assets with individual provision for expected credit loss review the accuracy and rationality
of the information and relevant assumptions used by the management in the test process; Check the
accuracy of the provision for impairment of accounts receivable and contract assets with long aging
accounts receivable and contract assets involving litigation matters.
(4) According to the characteristics and nature of customer transactions select samples to
implement the accounts receivable confirmation procedure and check the collection after the period and
evaluate the rationality of the provision for bad debts of accounts receivable.
4. Other information
The management of Fangda Group (hereinafter referred to as management) is responsible for other
information. The other information includes the information covered in Fangda Group's 2025 annual report
but does not include the financial statements and our audit report.Our audit opinions published in the financial statements do not cover other information and we do
not publish any form of assurance conclusion on other information.In connection with our audit of the financial statements our responsibility is to read other
information. In the process we consider whether there is a material inconsistency or other material
misstatement of other information whether it is in the financial statements or what we have learned
during the audit process.Based on the work we have performed if we determine that there is a material misstatement of other
information we should report that fact. In this regard we have nothing to report.
5. Executives' Responsibilities on the Financial Statements
(1) Preparing these financial statements according to the Accounting Standards for Business
Enterprises and presenting them fairly; (2) designing implementing and maintaining necessary internal
control to make sure that these financial statements are free from material misstatement whether due to
fraud or error.In the preparation of the financial statements the management is responsible for assessing Fangda
Group's ability to continue as a going concern disclosing issues related to going concern (if
105Annual Report 2025 of China Fangda Group Co. Ltd.
applicable) and applying the going concern assumption unless management plans to liquidate Fangda Group
terminate operations or there are no other realistic choices.The management is responsible for overseeing the financial reporting process of Fangda Group.
6. Auditor's responsibility for auditing financial statements
Our objective is to obtain reasonable assurance as to whether the entire financial statements are
free from material misstatement due to fraud or error and to issue an audit report containing audit
opinions. Reasonable assurance is a high level of assurance but it does not guarantee that an audit
performed in accordance with auditing standards can always be discovered when a major misstatement exists.The report may be due to fraud or mistakes and if a reasonable expectation of misstatement alone or
aggregated may affect the economic decision-making made by users of financial statements based on the
financial statements the misstatement is generally considered to be material.In the process of conducting audit work in accordance with auditing standards we use professional
judgment and maintain professional suspicion. At the same time we also perform the following tasks:
(1) Identify and assess risks of material misstatement of financial statements due to fraud or
errors design and implement audit procedures to address these risks and obtain adequate and appropriate
audit evidence as a basis for issuing audit opinions. As fraud may involve collusion forgery willful
omission misrepresentation or override of internal control the risk of not discovering a material
misstatement due to fraud is higher than the risk of not discovering a material misstatement resulting
from a mistake.
(2) Understand audit-related internal controls to design appropriate audit procedures.
(3) Evaluate the appropriateness of accounting policies adopted by the management and the
reasonableness of accounting estimates and related disclosures.
(4) Conclude on the appropriateness of management's use of continuing operations assumptions. At
the same time based on the audit evidence obtained it concludes that whether there are major
uncertainties in the matters or circumstances that may cause major doubts about the ability of the
Company's continuing operations. If we conclude that there are significant uncertainties the auditing
standards require us to request the users of the report to pay attention to the relevant disclosures in
the financial statements in the audit report; if the disclosure is not sufficient we should publish non-
106Annual Report 2025 of China Fangda Group Co. Ltd.
unqualified opinions. Our conclusions are based on the information available as of the date of the audit
report. However future events or circumstances may result in Fangda Group's inability to continue
operating.
(5) Evaluate the overall presentation structure and content of the financial statements and
evaluate whether the financial statements fairly reflect the relevant transactions and events.
(6) Obtain sufficient and appropriate audit evidence on the financial information of entity or
business activities in Fangda Group to express opinions on the financial statements. We are responsible
for directing supervising and executing group audits and assume full responsibility for audit opinions.We communicate with the governance team on planned audit scope timing and major audit findings
including communication of the internal control deficiencies that we identified during the audit.We also provide a statement to the management on compliance with ethical requirements related to
independence and communicate with the management on all relationships and other matters that may
reasonably be considered to affect our independence as well as related preventive measures (if
applicable).From the matters passed with the management we determine which items are most important for the
audit of the financial statements of the current period and thus constitute the key audit matters. We
describe these matters in our audit report unless laws and regulations prohibit the public disclosure of
these matters or in rare cases if it is reasonably expected that the negative consequences of
communicating something in the audit report will outweigh the benefits in the public interest we
determine that such matter should not be communicated in the audit report.II. Financial statements
Unit for statements in notes to financial statements: RMB yuan
1. Consolidated Balance Sheet
Prepared by: China Fangda Group Co. Ltd.In RMB
Item Closing balance Opening balance
Current asset:
Monetary capital 1401292102.72 1491777341.84
107Annual Report 2025 of China Fangda Group Co. Ltd.
Settlement provision
Outgoing call loan
Transactional financial assets 410.06
Derivative financial assets 1459950.00
Notes receivable 121778063.00 73887694.24
Account receivable 885516557.23 1123506196.98
Receivable financing 4568000.10
Prepayment 20407968.16 23355036.11
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance
contracts receivable
Other receivables 120173307.70 168322524.80
Including: interest
receivable
Dividend receivable
Repurchasing of financial
assets
Inventory 685058418.56 705666408.74
Among them: data resources
Contract assets 1998091151.43 2247698479.96
Assets held for sales
Non-current assets due in 1
year
Other current assets 296646964.92 307777143.14
Total current assets 5530424893.78 6146558825.91
Non-current assets:
Loan and advancement provided
Debt investment
Other debt investment
Long-term receivables
Long-term share equity
32988644.6356690973.97
investment
Investment in other equity
tools
Other non-current financial
6516131.636519740.17
assets
Investment real estate 5548371426.50 5835036098.20
Fixed assets 940980113.90 940894344.39
Construction in process 1214530.34 7265104.44
Productive biological assets
Gas & petrol
Use right assets 13470006.41 15683121.04
Intangible assets 82258834.99 124052394.79
108Annual Report 2025 of China Fangda Group Co. Ltd.
Among them: data resources
R&D expense
Among them: data resources
Goodwill
Long-term amortizable expenses 6562494.97 4041025.70
Deferred income tax assets 266869033.36 205986926.71
Other non-current assets 145743957.24 212658669.89
Total of non-current assets 7044975173.97 7408828399.30
Total of assets 12575400067.75 13555387225.21
Current liabilities
Short-term loans 1202846497.03 1663696422.48
Loans from Central Bank
Call loan received
Transactional financial
liabilities
Derivative financial
1520625.00
liabilities
Notes payable 429110637.53 681188127.97
Account payable 2040691220.16 2146594890.57
Prepayment received 3517539.83 1513398.39
Contract liabilities 350155877.61 268594041.26
Selling of repurchased
financial assets
Deposit received and held for
others
Entrusted trading of securities
Entrusted selling of securities
Employees' wage payable 67812846.09 76243647.97
Taxes payable 40439297.75 48847117.19
Other payables 125372728.24 120918002.02
Including: interest payable
Dividend payable
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liabilities due in
379089194.66131374661.05
1 year
Other current liabilities 60918938.51 50835559.67
Total current liabilities 4699954777.41 5191326493.57
Non-current liabilities:
Insurance contract provision
Long-term loans 1290000000.00 1137000000.00
Bond payable
Including: preferred stock
109Annual Report 2025 of China Fangda Group Co. Ltd.
Perpetual bond
Lease liabilities 8979546.87 10652607.48
Long-term payable
Long-term employee benefits
payable
Anticipated liabilities 1455390.21 1286391.72
Deferred earning 26304277.69 10669612.13
Deferred income tax liabilities 941080689.22 1030341141.92
Other non-current liabilities
Total of non-current liabilities 2267819903.99 2189949753.25
Total liabilities 6967774681.40 7381276246.82
Owner's equity:
Share capital 1073874227.00 1073874227.00
Other equity tools
Including: preferred stock
Perpetual bond
Capital reserves 4357948.33 4357948.33
Less: Shares in stock
Other miscellaneous income 161046834.50 158405014.52
Special reserves
Surplus reserve 85368328.00 83974716.22
Common risk provisions
Undistributed profit 4234637792.91 4805192000.28
Total of owner's equity belong to
5559285130.746125803906.35
the parent company
Minor shareholders' equity 48340255.61 48307072.04
Total of owners' equity 5607625386.35 6174110978.39
Total of liabilities and owner's
12575400067.7513555387225.21
interest
Legal Representative: Xiong Jianming Person in Charge of Accounting Functions: Lin Kebin
Head of Accounting Department: Wang Huan
2. Balance Sheet of the Parent Company
In RMB
Item Closing balance Opening balance
Current asset:
Monetary capital 20613570.12 45751906.05
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 5225854.36 2885125.35
Receivable financing
Prepayment 342719.99 145287.27
Other receivables 1131454187.78 1622103166.85
Including: interest
receivable
Dividend receivable
110Annual Report 2025 of China Fangda Group Co. Ltd.
Inventory
Among them: data resources
Contract assets
Assets held for sales
Non-current assets due in 1
year
Other current assets 2482430.99 2081838.29
Total current assets 1160118763.24 1672967323.81
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term share equity
1706562530.001657062530.00
investment
Investment in other equity
tools
Other non-current financial
30000001.0030000001.00
assets
Investment real estate 376551400.00 380644350.00
Fixed assets 44963441.98 46688469.68
Construction in process
Productive biological assets
Gas & petrol
Use right assets 3449628.07 8030919.38
Intangible assets 1266785.86 1200848.82
Among them: data resources
R&D expense
Among them: data resources
Goodwill
Long-term amortizable expenses 104570.72 285478.52
Deferred income tax assets
Other non-current assets
Total of non-current assets 2162898357.63 2123912597.40
Total of assets 3323017120.87 3796879921.21
Current liabilities
Short-term loans
Transactional financial
liabilities
Derivative financial
liabilities
Notes payable
Account payable 845545.88 873640.82
Prepayment received 758736.42 749684.15
Contract liabilities
111Annual Report 2025 of China Fangda Group Co. Ltd.
Employees' wage payable 1883259.98 2834942.51
Taxes payable 248881.74 286140.09
Other payables 1005650528.32 1437682555.06
Including: interest payable
Dividend payable
Liabilities held for sales
Non-current liabilities due in
2839640.733531740.50
1 year
Other current liabilities 259291.84 164239.72
Total current liabilities 1012485884.91 1446122942.85
Non-current liabilities:
Long-term loans
Bond payable
Including: preferred stock
Perpetual bond
Lease liabilities 727265.94 4614693.40
Long-term payable
Long-term employee benefits
payable
Anticipated liabilities
Deferred earning
Deferred income tax liabilities 46328991.71 42909713.11
Other non-current liabilities
Total of non-current liabilities 47056257.65 47524406.51
Total liabilities 1059542142.56 1493647349.36
Owner's equity:
Share capital 1073874227.00 1073874227.00
Other equity tools
Including: preferred stock
Perpetual bond
Capital reserves 360835.52 360835.52
Less: Shares in stock
Other miscellaneous income 39731740.46 39731740.46
Special reserves
Surplus reserve 85368328.00 83974716.22
Undistributed profit 1064139847.33 1105291052.65
Total of owners' equity 2263474978.31 2303232571.85
Total of liabilities and owner's
3323017120.873796879921.21
interest
3. Consolidated Income Statement
In RMB
Item 2025 2024
1. Total revenue 3377303066.44 4424224197.71
Incl. Business income 3377303066.44 4424224197.71
Interest income
112Annual Report 2025 of China Fangda Group Co. Ltd.
Insurance fee earned
Fee and commission received
2. Total business cost 3405647937.11 4114643580.92
Incl. Business cost 2921536952.53 3588142296.48
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy responsibility
contract reserves provided
Insurance policy dividend paid
Reinsurance expenses
Taxes and surcharges 36011342.42 43364391.34
Sales expense 57404021.17 55140153.13
Administrative expense 179347723.55 191667435.20
R&D cost 132814412.12 171031371.73
Financial expenses 78533485.32 65297933.04
Including: interest cost 73451706.21 60377020.35
Interest income 10685216.12 19230549.61
Add: other gains 10569849.85 19683263.58
Investment gains ("-" for loss) -25773481.21 -4547362.60
Incl. Investment gains from affiliates
-23702329.34-70043.43
and joint ventures
Financial assets derecognized as
-3565876.31-2538217.26
a result of amortized cost
Exchange gains ("-" for loss)
Net open hedge gains ("-" for loss)
Gains from change of fair value ("-" for
-280735167.15-18394198.42
loss)
Credit impairment ("-" for loss) -252544839.46 -110686852.25
Investment impairment loss ("-" for loss) -30626112.52 -35260579.49
Investment gains ("-" for loss) -3032277.77 -500192.81
3. Operational profit ("-" for loss) -610486898.93 159874694.80
Plus: non-operational income 582660.42 1712412.29
Less: non-operational expenditure 18360766.41 2226292.50
4. Gross profit ("-" for loss) -628265004.92 159360814.59
Less: Income tax expenses -112831775.11 13192524.27
5. Net profit ("-" for net loss) -515433229.81 146168290.32
(1) By operating consistency
1. Net profit from continuous operation ("-"
-515433229.81146168290.32
for net loss)
2. Net profit from discontinuous operation
("-" for net loss)
(2) By ownership
1. Net profit attributable to the
-515466884.24144813705.53
shareholders of the parent company
113Annual Report 2025 of China Fangda Group Co. Ltd.
2. Minor shareholders' equity 33654.43 1354584.79
6. After-tax net amount of other misc. incomes 2641334.26 113857440.93
After-tax net amount of other misc. incomes
2641819.98113861211.98
attributed to parent's owner
(1) Other misc. incomes that cannot be re-
classified into gain and loss
1. Re-measure the change in the defined
benefit plan
2. Other comprehensive income that cannot
be transferred to profit or loss under the
equity method
3. Fair value change of investment in
other equity tools
4. Fair value change of the Company's
credit risk
5. Others
(2) Other misc. incomes that will be re-
2641819.98113861211.98
classified into gain and loss
1. Other comprehensive income that can be
transferred to profit or loss under the equity
method
2. Fair value change of other debt
investment
3. 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 2533488.76 -1440207.76
6. Translation difference of foreign
295993.10-769741.24
exchange statement
7. Others -187661.88 116071160.98
After-tax net of other misc. income attributed
-485.72-3771.05
to minority shareholders
7. Total of misc. incomes -512791895.55 260025731.25
Total of misc. incomes attributable to the
-512825064.26258674917.51
owners of the parent company
Total misc gains attributable to the minor
33168.711350813.74
shareholders
8. Earnings per share
(1) Basic earnings per share -0.48 0.13
(2) Diluted earnings per share -0.48 0.13
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 Person in Charge of Accounting Functions: Lin Kebin
Head of Accounting Department: Wang Huan
4. Income Statement of the Parent Company
In RMB
Item 2025 2024
1. Turnover 22995999.62 22532419.32
Less: Operation cost 8267.66 81137.33
Taxes and surcharges 1265967.33 1424024.13
114Annual Report 2025 of China Fangda Group Co. Ltd.
Sales expense
Administrative expense 26399191.80 32460638.60
R&D cost
Financial expenses -432824.87 4841621.43
Including: interest cost 218784.11 4405563.35
Interest income 580933.35 260151.97
Add: other gains 58615.83 108256.72
Investment gains ("-" for loss) 25676162.22 72929550.62
Incl. Investment gains from affiliates
and joint ventures
Financial assets derecognized as a
result of amortized cost ("-" for loss)
Net open hedge gains ("-" for loss)
Gains from change of fair value ("-" for
-4092950.00-4092950.00
loss)
Credit impairment ("-" for loss) -80044.21 -238257.79
Investment impairment loss ("-" for loss)
Investment gains ("-" for loss) 32377.91 1053415.23
2. Operational profit ("-" for loss) 17349559.45 53485012.61
Plus: non-operational income 6681.45 5025.67
Less: non-operational expenditure 844.46 24170.61
3. Gross profit ("-" for loss) 17355396.44 53465867.67
Less: Income tax expenses 3419278.63 -3818332.48
4. Net profit ("-" for net loss) 13936117.81 57284200.15
(1) Net profit from continuous operation ("-"
13936117.8157284200.15
for net loss)
(2) Net profit from discontinuous operation ("-
" for net loss)
5. After-tax net amount of other misc. incomes 28392754.08
(1) Other misc. incomes that cannot be re-
classified into gain and loss
1. Re-measure the change in the defined
benefit plan
2. Other comprehensive income that cannot
be transferred to profit or loss under the equity
method
3. Fair value change of investment in other
equity tools
4. Fair value change of the Company's
credit risk
5. Others
(2) Other misc. incomes that will be re-
28392754.08
classified into gain and loss
1. Other comprehensive income that can be
transferred to profit or loss under the equity
method
2. Fair value change of other debt
investment
3. Gains and losses from changes in fair
value of available-for-sale financial assets
115Annual Report 2025 of China Fangda Group Co. Ltd.
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 13936117.81 85676954.23
7. Earnings per share
(1) Basic earnings per share
(2) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Item 2025 2024
1. Net cash flow from business
operations:
Cash received from sales of products
3736526691.184480307796.77
and providing of services
Net increase of customer deposits and
capital kept for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from
other financial bodies
Cash received against original
insurance contract
Net cash received from reinsurance
business
Net increase of client deposit and
investment
Cash received as interest processing
fee and commission
Net increase of inter-bank fund
received
Net increase of repurchasing business
Net cash received from trading
securities
Tax refunded 87812070.80 20223216.89
Other cash received from business
153978372.04115024150.76
operation
Sub-total of cash inflow from business
3978317134.024615555164.42
operations
Cash paid for purchasing products and
2964314842.233476800439.66
services
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
116Annual Report 2025 of China Fangda Group Co. Ltd.
Cash paid for policy dividend
Cash paid to and for the staff 483554744.62 500142274.75
Taxes paid 186348404.40 187032846.31
Other cash paid for business activities 156686242.90 180685510.27
Sub-total of cash outflow from business
3790904234.154344661070.99
operations
Cash flow generated by business
187412899.87270894093.43
operations net
2. Cash flow generated by investment:
Cash received from investment recovery 1089745926.15 1785649.27
Cash received as investment profit 1426386.60 214188.46
Net cash retrieved from disposal of
fixed assets intangible assets and 52154307.71 8161249.68
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
1143326620.4610161087.41
investment
Cash paid for construction of fixed
assets intangible assets and other long- 98345774.80 229651090.29
term assets
Cash paid as investment 1089326003.52 27416773.30
Net increase of loan against pledge
Net cash paid for acquiring
subsidiaries and other operational units
Other cash paid for investment 1787676.30
Subtotal of cash outflows 1187671778.32 258855539.89
Cash flow generated by investment
-44345157.86-248694452.48
activities net
3. Cash flow generated by financing
activities:
Cash received from investment 14.86 14873.62
Incl. Cash received from investment
attracted by subsidiaries from minority 14.86 14873.62
shareholders
Cash received from borrowed loans 2516692628.24 3503675536.37
Other cash received from financing
100842000.00463600944.44
activities
Subtotal of cash inflow from financing
2617534643.103967291354.43
activities
Cash paid to repay debts 2563323480.12 3451800000.00
Cash paid as dividend profit or
126024225.73167473899.50
interests
Incl. Dividend and profit paid by
6962732.02
subsidiaries to minority shareholders
Other cash paid for financing
12963429.49119400311.19
activities
Subtotal of cash outflow from financing
2702311135.343738674210.69
activities
Net cash flow generated by financing
-84776492.24228617143.74
activities
4. Influence of exchange rate changes on
949081.781247313.23
cash and cash equivalents
5. Net increase in cash and cash
59240331.55252064097.92
equivalents
117Annual Report 2025 of China Fangda Group Co. Ltd.
Plus: Balance of cash and cash
1031725216.34779661118.42
equivalents at the beginning of term
6. Balance of cash and cash equivalents
1090965547.891031725216.34
at the end of the period
6. Cash Flow Statement of the Parent Company
In RMB
Item 2025 2024
1. Net cash flow from business
operations:
Cash received from sales of products
14964442.3123297859.17
and providing of services
Tax refunded
Other cash received from business
846127900.091444921260.13
operation
Sub-total of cash inflow from business
861092342.401468219119.30
operations
Cash paid for purchasing products and
3632374.003898051.28
services
Cash paid to and for the staff 15288292.77 17406198.35
Taxes paid 2276582.56 2519884.87
Other cash paid for business activities 734330454.16 991774056.35
Sub-total of cash outflow from business
755527703.491015598190.85
operations
Cash flow generated by business
105564638.91452620928.45
operations net
2. Cash flow generated by investment:
Cash received from investment recovery 38000000.00 235323000.00
Cash received as investment profit 25679051.34 72929550.62
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
63679051.34308252550.62
investment
Cash paid for construction of fixed
assets intangible assets and other long- 426033.24 508802.14
term assets
Cash paid as investment 87500000.00 365554277.00
Net cash paid for acquiring
subsidiaries and other operational units
Other cash paid for investment
Subtotal of cash outflows 87926033.24 366063079.14
Cash flow generated by investment
-24246981.90-57810528.52
activities net
3. Cash flow generated by financing
activities:
Cash received from investment
Cash received from borrowed loans
Other cash received from financing
activities
Subtotal of cash inflow from financing
activities
118Annual Report 2025 of China Fangda Group Co. Ltd.
Cash paid to repay debts 300000000.00
Cash paid as dividend profit or
53693711.3590940972.34
interests
Other cash paid for financing
52842009.564061076.00
activities
Subtotal of cash outflow from financing
106535720.91395002048.34
activities
Net cash flow generated by financing
-106535720.91-395002048.34
activities
4. Influence of exchange rate changes on
79727.9717360.14
cash and cash equivalents
5. Net increase in cash and cash
-25138335.93-174288.27
equivalents
Plus: Balance of cash and cash
45501906.0545676194.32
equivalents at the beginning of term
6. Balance of cash and cash equivalents
20363570.1245501906.05
at the end of the period
7. Statement of Change in Owners' Equity (Consolidated)
Amount of the Current Term
In RMB
2025
Owners' Equity Attributable to the Parent Company
Mino
Other equity Othe
Less r Tota
tools r Comm Undi
: shar l of
Item Shar Capi misc Spec Surp on striShar ehol owne
e Pref Perp tal ella ial lus risk bute Othe Subt ders
capi erre
es rs'
etua Othe rese neou rese rese prov d rs otal '
d in equital l rs rves s rves rve isio prof equi
shar stoc ty
bond inco ns it
e k
ty
me
1.
Bala
nce
107158839480612483617
at 435
387405747519580070411
the 794
422014.16.220039072.0097
end 8.33
7.005220.286.3548.39
of
last
year
2.
Bala
nce
at
107158839480612483617
the 435
387405747519580070411
begi 794
422014.16.220039072.0097
nnin 8.33
7.005220.286.3548.39
g of
curr
ent
year
3.264139--331-
Chan 181 361 570 566 83.5 566
119Annual Report 2025 of China Fangda Group Co. Ltd.
ge 9.98 1.78 554 518 7 485
amou 207. 775. 592.nt 37 61 04
in
the
curr
ent
peri
od
("-"
for
decr
ease
)
(1)
Tota - - -
l of 264 515 512 331 512
misc 181 466 825 68.7 791.9.98884.064.1895.inco 24 26 55
mes
(2)
Inve
stme
nt
or
decr
easi 14.8 14.8
ng 6 6
of
capi
tal
by
owne
rs
1.
Comm
on
shar
es 14.8 14.8
inve 6 6
sted
by
owne
rs
(3)
---
Prof
139550536536
it
361873937937
allo
1.7823.111.311.3
tmen
355
t
1.
-
Prov 139
139
isio 361
361
n of 1.78
1.78
surp
120Annual Report 2025 of China Fangda Group Co. Ltd.
lus
rese
rves
2.
Dist
ribu
tion
---
to
536536536
owne
937937937
rs
11.311.311.3
(or
555
shar
ehol
ders
)
(4)
Inte
rnal
carr
y-
over
of
owne
rs'
equi
ty
(5)
Spec
ial
rese
rves
(6)
Othe
rs
4.
Bala
nce
at 107 161 853 423 555 483 560
435
the 387 046 683 463 928 402 762
794
end 422 834. 28.0 779 513 55.6 538
8.33
of 7.00 50 0 2.91 0.74 1 6.35
this
peri
od
Amount of the Previous Term
In RMB
2024
Owners' Equity Attributable to the Parent Company Mino
Tota
Other equity Less Othe Comm Undi r l of
Item Shar tools Capi : r Spec Surp on stri shar owne
e tal Shar misc ial lus risk bute Othe Subt ehol rs'
capi Pref Perp Othe rese es ella rese rese prov d rs otal ders equi
tal erre etua rs rves in neou rves rve isio prof ' ty
d l stoc s ns it equi
121Annual Report 2025 of China Fangda Group Co. Ltd.
shar bond k inco ty
e me
1.
Bala
nce
107114231793477596746603
at
387595218249235014552479
the
42288.470.740.499405671.2583
end
7.000930.457.0708.27
of
last
year
2.
Bala
nce
at
107114231793477596746603
the
387595218249235014552479
begi
42288.470.740.499405671.2583
nnin
7.000930.457.0708.27
g of
curr
ent
year
3.
Chan
ge
amou
nt
in
-
the - 135 328 165 139
464263
curr 710 283 320 663 315
977481
ent 164 143. 59.8 339. 140.
5.7999.1
peri 0.07 73 3 28 12
6
od
("-"
for
decr
ease
)
(1)
Tota
113144258260
l of 135
861813674025
misc 081
211.705.917.731..3.74
98535125
inco
mes
(2)
Inve
stme
nt - -
--
or 207 278
710710
decr 362 379
164164
easi 80.8 20.9
0.070.07
ng 8 5
of
capi
tal
122Annual Report 2025 of China Fangda Group Co. Ltd.
by
owne
rs
1.
Comm
on
--
shar
207207
es
362362
inve
80.880.8
sted
88
by
owne
rs
2.
Capi
tal
cont
ribu
ted
by
othe
r
equi
ty
inst
rume
nt
hold
ers
3.
Amou
nt
of
shar
es
paid
and
acco
unte
d as
owne
rs'
equi
ty
---
4.
710710710
Othe
164164164
rs
0.070.070.07
(3)
---
Prof -
572916859928
it 696
842383099726
allo 273
0.0258.138.170.1
tmen 2.02
868
t
1.572-
Prov 842 572
123Annual Report 2025 of China Fangda Group Co. Ltd.
isio 0.02 842
n of 0.02
surp
lus
rese
rves
2.
Dist
ribu
tion
---
to -
859859928
owne 696
099099726
rs 273
38.138.170.1
(or 2.02
668
shar
ehol
ders
)
(4)
Inte
rnal
carr -
214-
y- 203
219107
over 432
31.7864
of 87.5
54.23
owne 2
rs'
equi
ty
1.
Othe
r -
214-
misc 203
219107
ella 432
31.7864
neou 87.5
54.23
s 2
inco
me
(5)
Spec
ial
rese
rves
(6)
Othe
rs
4.
Bala
nce
107158839480612483617
at 435
387405747519580070411
the 794
422014.16.220039072.0097
end 8.33
7.005220.286.3548.39
of
this
peri
124Annual Report 2025 of China Fangda Group Co. Ltd.
od
8. Statement of Change in Owners' Equity (Parent Company)
Amount of the Current Term
In RMB
2025
Other equity tools Other Total
Undis
Capit Less: misce Speci Surpl of
Item Share tribuPrefe Perpe al Share llane al us Other ownercapit Other ted
rred tual reser s in ous reser reser s s'al s profi
share bond ves stock incom ves ve equitt
e y
1.
Balan
ce at 1073 1105 2303
39738397
the 874 3608 291 232
17404716
end 227.0 35.52 052.6 571.8.46.22
of 0 5 5
last
year
2.
Balan
ce at
the 1073 1105 2303
39738397
begin 874 3608 291 232
17404716
ning 227.0 35.52 052.6 571.8.46.22
of 0 5 5
curre
nt
year
3.
Chang
e
amoun
t in
--
the 1393
41153975
curre 611.
12057593
nt 78.32.54
perio
d ("-
" for
decre
ase)
(1)
Total
13931393
of
61176117
misc..81.81
incom
es
(2)
Inves
tment
125Annual Report 2025 of China Fangda Group Co. Ltd.
or
decre
asing
of
capit
al by
owner
s
(3)
--
Profi 1393
55085369
t 611.
73233711
allot 78.13.35
ment
1.
Provi
sion -
1393
of 1393
611.
surpl 611.
78
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reser
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2.
Distr
ibuti
--
on to
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owner
37113711
s (or.35.35
share
holde
rs)
(4)
Inter
nal
carry
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of
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s'
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y
(5)
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(6)
Other
s
4.
Balan
107310642263
ce at 3973 8536
8743608139474
the 1740 8328
227.035.52847.3978.3
end .46 .00
031
of
this
126Annual Report 2025 of China Fangda Group Co. Ltd.
perio
d
Amount of the Previous Term
In RMB
2024
Other equity tools Other Total
Undis
Capit Less: misce Speci Surpl of
Item Share tribual Share llane al us Other owner
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1.
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ce at 1073 - 1159 2303
7932
the 874 3608 1008 988 465
4940
end 227.0 35.52 2945 498.2 555.7.43
of 0 .37 0 8
last
year
2.
Balan
ce at
the 1073 - 1159 2303
7932
begin 874 3608 1008 988 465
4940
ning 227.0 35.52 2945 498.2 555.7.43
of 0 .37 0 8
curre
nt
year
3.
Chang
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-
the 4981 4649 -
5469
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(1)
Total
283957288567
of
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misc..08.15.23
incom
es
(2)
Inves
tment
or
decre
asing
127Annual Report 2025 of China Fangda Group Co. Ltd.
of
capit
al by
owner
s
(3)
--
Profi 5728
91638590
t 420.
83589938
allot 02.18.16
ment
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2.
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s (or.16.16
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(4)
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nal
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1931
of 644. 3287.75
owner 23 .52
s'
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1.
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--
misce 2142
10782034
llane 1931
644.3287
ous .75
23.52
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4.10733973839711052303
3608
Balan 874 1740 4716 291 232
35.52
ce at 227.0 .46 .22 052.6 571.8
128Annual Report 2025 of China Fangda Group Co. Ltd.
the 0 5 5
end
of
this
perio
d
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 Shen Fu Ban Han (1995)
No.194 and was founded on the basis of Shenzhen Fangda Construction Material Co. Ltd. by way of share
issuing in October 1995. The unified social credit code is: 91440300192448589C; registered address:
Fangda Technology Building Keji South 12th Road South District High-tech Industrial Park Nanshan
District Shenzhen. Mr. Xiong Jianming is the legal representative.The Company issued foreign currency shares (B shares) and local currency shares (A shares) and
listed in November 1995 and April 1996 respectively in Shenzhen Stock Exchange. The Company received the
Reply to the Non-public Share Issuance of Fangda China Group Co. Ltd. (CSRC License [2016] No.825) to
allow the Company to conduct non-public issuance of 32184931 A-shares in June 2016. According to the
profit distribution plan for 2016 approved by the 2016 general shareholders' meeting the Company issued
five shares for every ten shares to all shareholders through surplus capitalization based on the total
789094836 shares on December 31 2016. The registered capital at the end of 2017 was RMB
1183642254.00. The Company repurchased and canceled 28160568.00 B shares in August 2018
32097497.00 B shares in January 2019 35105238.00 B shares in May 2020 14404724.00 B shares in April
2021 and canceled in April 2021. The existing registered capital is RMB1073874227.00 yuan.
The Company has established the corporate governance structure of the General Meeting of
Shareholders and the Board of Directors. At present it has set up the President's Office the
Administration Department the Human Resources Department the Enterprise Management Department the
Finance Department the Audit and Supervision Department the Securities Department the Legal Department
the Information Management Department the Technology Innovation Department 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
129Annual Report 2025 of China Fangda Group Co. Ltd.
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
leasing and property management services 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 April 03 2026.IV. Basis for the preparation of financial statements
1. Preparation basis
The Company prepares the financial statements based on continuous operation and according to actual
transactions and events with figures confirmed and measured in compliance with the Accounting Standards
for Business Enterprises and other specific account standards application guide and interpretations. The
Company has also disclosed related financial information according to the requirement of the Regulations
of Information Disclosure No.15 – General Provisions for Financial Statements (Revised in 2023) issued
by the CSRC.
2. Continuous operation
The Company assessed the continuing operations capability of the Company for the 12 months from the
end of the reporting period. No matters were found that would affect the Company's ability to continue as
a going concern. It is reasonable for the Company to prepare financial statements based on continuing
operations.
130Annual Report 2025 of China Fangda Group Co. Ltd.
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
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 Amounts exceeding 5% of the consolidated total
for important accounts receivable in the current profit and greater than RMB5 million (if the amount
period; important accounts receivable write off is negative its absolute value is used)
Amount greater than 1% of total consolidated net
Important ongoing projects
assets
A single project is greater than 0.1% of the
Important payables with an aging of over 1 year
combined total assets
Individual net assets greater than 1% of the total
Major non wholly-owned subsidiaries
consolidated net assets
Investment income exceeding 5% of the consolidated
Important joint ventures and associates total profit and greater than RMB5 million (if the
amount is negative its absolute value is used)
131Annual Report 2025 of China Fangda Group Co. Ltd.
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. Where the combined party applied different accounting policies and accounting
periods from those of the Company prior to the business combination such policies and periods have been
harmonized based on the materiality principle—specifically the carrying amounts of the combined party's
assets and liabilities have been adjusted in accordance with the Company's accounting policies and
accounting periods. If there is a difference between the book value of the net assets acquired by the
Company in the business combination and the book value of the consideration paid first adjust the balance
of the capital reserve (capital premium or equity premium) the balance of the capital reserve (capital
premium or equity premium) If it is insufficient to offset the surplus reserve and undistributed profits
will be offset in sequence.For the accounting treatment method of business combination not under the same control through step-by-
step transactions see Chapter VIII V. important accounting policies and accounting estimates 7. (6).
(2) Consolidation of entities under different control
All identifiable assets and liabilities acquired by the Company during the merger shall be measured at
its fair value on the date of purchase. Where the acquiree applied different accounting policies and
accounting periods from those of the Company prior to the business combination such policies and periods
have been harmonized based on the materiality principle—specifically the carrying amounts of the
acquiree's assets and liabilities have been adjusted in accordance with the Company's accounting policies
and accounting periods. The merger cost of the Company on the date of purchase is greater than the fair
value of the assets and liabilities recognized by the purchaser in the merger and is recognized as
goodwill. If the merger cost is less than the difference between the identifiable assets and the fair value
of the liabilities obtained by the purchaser in the enterprise merger the merger cost and the fair value
of the identifiable assets and the liabilities obtained by the purchaser in the enterprise merger are
reviewed and the merger cost is still less than the fair value of the identifiable assets and liabilities
obtained by the purchaser after the review the difference is considered as the profit and loss of the
current period of the merger.For the accounting treatment method of business combinations not under common control achieved through
step-by-step transactions see Section VIII V Important Accounting Policies and Estimates 7 (6).
(3) Treatment of related transaction fee in enterprise merger
Agency expenses and other administrative expenses such as auditing legal consulting or appraisal
services occurred relating to the merger of entities are accounted into current income account when
132Annual Report 2025 of China Fangda Group Co. Ltd.
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.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
133Annual Report 2025 of China Fangda Group Co. Ltd.
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 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.
134Annual Report 2025 of China Fangda Group Co. Ltd.
(C) When preparing the consolidated cash flow statement the cash flows of the subsidiary and the
business combination from the beginning of the current period to the end of the reporting period are
included in the consolidated cash flow statement and the related items of the comparative statement are
adjusted which is regarded as the combined report body since the final The controller has been there since
the beginning of control.B. Subsidiary or business increased by business combination under the same control
(A) When preparing the consolidated balance sheet the opening number of the consolidated balance sheet
is not adjusted.
(B) When preparing the consolidated profit statement the income expense and profit of the subsidiary
company and the business Purchase date and Closing balance shall be included in the consolidated profit
statement.
(C) When the consolidated cash flow statement is prepared the cash flow from the purchase date of the
subsidiary to the end of the reporting period is included in the consolidated cash flow statement.* Disposal of subsidiaries or business
A. When preparing the consolidated balance sheet the opening number of the consolidated balance sheet
is not adjusted.B. When preparing the consolidated profit statement the income expense and profit of the subsidiary
company and the business opening and disposal date shall be included in the consolidated profit statement.C. When the consolidated cash flow statement is prepared the cash flow from the Beginning of the
period of the subsidiary to the end of the reporting period is included in the consolidated cash flow
statement.
(5) Special considerations in consolidation offsets
* The long-term equity investment held by a subsidiary company shall be regarded as the inventory
shares of the Company as a subtraction of the owner's rights and interests which shall be listed under the
item of "subtraction: Stock shares" under the item of owner's rights and interests in the consolidated
balance sheet.The long-term equity investments held by the subsidiaries are offset by the shares of the shareholders
of the subsidiaries.* The "special reserve" and "general risk preparation" projects because they are neither real capital
(or share capital) nor capital reserve but also different from the retained income and undistributed
profits are restored according to the ownership of the parent company after the long-term equity
investment is offset by the ownership rights and interests of the subsidiary company.* 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
135Annual Report 2025 of China Fangda Group Co. Ltd.
statement is adjusted with the exception of the deferred income tax related to the transaction or event
directly included in the owner's equity and the merger of the enterprise.* The unrealized internal transaction gains and losses incurred by the Company from selling assets to
subsidiaries shall be fully offset against the "net profit attributable to the owners of the parent
company". The unrealized internal transaction gains and losses arising from the sale of assets by the
subsidiary to the Company shall be offset between the "net profit attributable to the owners of the parent
company" and the "minority shareholder gains and losses" in accordance with the Company's distribution
ratio to the subsidiary. The unrealized internal transaction gains and losses arising from the sale of
assets between subsidiaries shall be offset between the "net profit attributable to the owners of the
parent company" and the "minority shareholders' gains and losses" in accordance with the Company's
distribution ratio to the seller's subsidiary .* If the current loss shared by the minority shareholders of the subsidiary exceeds the share of the
minority shareholders in the owner 's equity of the subsidiary at the beginning of the period the balance
should still be offset against the minority shareholders 'equity.
(6) Accounting treatment of special transactions
* Purchase minority shareholders' equity
The Company purchases the shares of the subsidiaries owned by the minority shareholders of the
subsidiaries. In the individual financial statements the investment costs of the newly acquired long-term
investments of the minority shares shall be measured at the fair value of the price paid. In the
consolidated financial statements the difference between the newly acquired long-term equity investment
due to the purchase of minority equity and the share of net assets that should be continuously calculated
by the subsidiary since the purchase date or the merger date should be adjusted according to the new
shareholding ratio. The product (capital premium or equity premium) if the capital reserve is insufficient
to offset the surplus reserve and undistributed profits are offset in turn.* Step-by-step acquisition of control of the subsidiary through multiple transactions
A. Enterprise merger under common control through multiple transactions
On the date of the merger the Company determines the initial investment cost of the long-term equity
investment in the individual financial statements based on the share of the subsidiary 's net assets that
should be enjoyed after the merger in the final controller 's consolidated financial statements; the
initial investment cost and the 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
136Annual Report 2025 of China Fangda Group Co. Ltd.
surplus (share premium) according to the difference between the initial investment cost and the book value
of the held investment before merger plus the book value of the consideration paid on the merger date.Where the capital surplus falls short the retained income should be adjusted.Before the acquirer obtains control of the acquiree any recognized gains and losses other
comprehensive income and changes in other owners' equity related to the equity investment held by the
acquirer from the later of the date when the original equity was obtained or the date when both the
acquirer and the acquiree were under the control of the same party until the acquisition date should be
adjusted against the beginning retained earnings or the current profits and losses of the comparative
statements separately.A. Enterprise merger under common control through multiple transactions
On the merger day in individual financial statements the initial investment cost of the long-term
equity investment on the merger day is based on the book value of the long-term equity investment
previously held plus the sum of the additional investment costs on the merger day.In the consolidated financial statements the equity held in the acquiree before the acquisition date
is remeasured at its fair value on the acquisition date. If the equity held before the acquisition date is
designated as a financial asset measured at fair value through other comprehensive income the difference
between the fair value and its book value is included in retained earnings and the cumulative fair value
changes previously included in other comprehensive income are transferred to retained earnings. If the
equity held before the acquisition date is designated as a financial asset measured at fair value through
profit or loss or as a long-term equity investment accounted for by the equity method the difference
between the fair value and its book value is included in the current period's investment income. For other
comprehensive income and other changes in owners' equity under the equity method related to the equity held
before the acquisition date the related other comprehensive income is accounted for on the same basis as
if the investee had directly disposed of the related assets or liabilities on the acquisition date and the
related other changes in owners' equity are transferred to the current period's investment income on the
acquisition date.
(3) The Company disposes of long-term equity investment in subsidiaries without losing control
The parent company partially disposes of the long-term equity investment in the subsidiary company
without losing control. In the consolidated financial statements the disposal price corresponds to the
disposal of the long-term equity investment. The difference between the shares is adjusted for the capital
reserve (capital premium or equity premium). If the capital reserve is insufficient to offset the retained
earnings are adjusted.* The Company disposes of long-term equity investment in subsidiaries and loses control
A. One transaction disposition
If the Company loses control over the Invested Party due to the disposal of part of the equity
investment it shall remeasure the remaining equity according to its fair value at the date of loss of
control when compiling the consolidated financial statement. The consideration received from the disposal
of equity plus the fair value of the remaining equity minus the share of net assets and goodwill
137Annual Report 2025 of China Fangda Group Co. Ltd.
calculated based on the original shareholding ratio from the acquisition date or combination date to the
disposal date is included in the investment income for the period in which control is lost.Other comprehensive income related to equity investments in former subsidiaries is accounted for upon
loss of control on the same basis as if the related assets or liabilities of the former subsidiary were
directly disposed of. Other changes in owners' equity related to former subsidiaries that were previously
recognized under the equity method are reclassified to profit or loss in the period in which control is
lost.B. Multi-transaction step-by-step disposition
In consolidated financial statements you should first determine whether a step-by-step transaction is
a "blanket transaction".If the step-by-step transaction does not belong to a "package deal" in the individual financial
statements for each transaction before the loss of control of the subsidiary the book value of the long-
term equity investment corresponding to each disposal of equity is carried forward the price received and
the disposal The difference between the book value of the long-term equity investment is included in the
current investment income; in the consolidated financial statements it should be handled in accordance
with the relevant provisions of "the parent company disposes of the long-term equity investment in the
subsidiary without losing control."
If a step-by-step transaction belongs to a "blanket transaction" the transaction shall be treated as a
transaction that disposes of the subsidiary and loses control; In individual financial statements the
difference between each disposal price before the loss of control and the book value of the long-term
equity investment corresponding to the equity being disposed of is first recognized as other consolidated
gains and then converted to the current loss of control at the time of the loss of control; In the
consolidated financial statements for each transaction prior to the loss of control the difference
between the disposition of the price and the disposition of the investment corresponding to the share in
the net assets of the subsidiary shall be recognized as other consolidated gains and shall at the time of
the loss of control be transferred to the loss of control for the current period.Where the terms conditions and economic impact of each transaction meet one or more of the following
conditions usually multiple transactions are treated as a "package deal":
(a) These transactions were concluded at the same time or in consideration of mutual influence.(b) These transactions can only achieve the business result as a whole;
(c) The effectiveness of one transaction depends the occurrence of at least another transaction;
(d) A single transaction is not economic and is economic when considered together with other
transactions.
(5) Proportion of minority shareholders in factor companies who increase capital and dilute ownership
of parent companies
When other shareholders (minority shareholders) of a subsidiary increase their investment in the
subsidiary thereby diluting the parent company's equity proportion in the subsidiary. In the consolidated
financial statements the share of the parent company in the net book assets of the former subsidiary of
138Annual Report 2025 of China Fangda Group Co. Ltd.
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. Classification of Joint Arrangements and Accounting Policies for Joint Operations
A joint arrangement is an arrangement jointly controlled by two or more participants. The Company
classifies its joint arrangements into joint operations and joint ventures.
(1) Joint Operations
A joint operation is a joint arrangement whereby the Company has rights to the related assets and
obligations for the related liabilities of the arrangement.The Company recognizes the following items relating to its interest in a joint operation and accounts
for them in accordance with the relevant enterprise accounting standards:
* Recognizes assets held separately as well as its share of jointly held assets;
* Recognizes liabilities borne separately as well as its share of jointly borne liabilities;
* Recognizes revenue from the sale of its share of output from the joint operation;
* Recognizes its share of revenue generated by the joint operation from the sale of output;
* Recognizes expenses incurred separately as well as its share of expenses incurred by the joint
operation.
(2) Joint Ventures
A joint venture is a joint arrangement whereby the Company has rights only to the net assets of the
arrangement.The Company accounts for its investment in joint ventures using the equity method in accordance with
the relevant provisions on long-term equity investments.
9. 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.
139Annual Report 2025 of China Fangda Group Co. Ltd.
10. Foreign Currency Transactions and Translation of Foreign Currency Financial
Statements
(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. For non-monetary items measured at historical cost in foreign currencies they are translated
using the spot exchange rate on the transaction date. For inventories measured at the lower of cost and net
realizable value if the inventories were purchased in foreign currencies and their net realizable value is
reflected in foreign currencies as of the balance sheet date the net realizable value is first translated
into the functional currency at the spot exchange rate on the balance sheet date and then compared with
the inventory cost reflected in the functional currency to determine the ending value of the inventories.Non-monetary items measured at fair value in foreign currencies are translated using the spot exchange rate
on the date the fair value is determined. For financial assets measured at fair value with changes
recognized in the current period's profit or loss the difference between the translated amount in the
functional currency and the original amount in the functional currency is recognized in the current
period's profit or loss. For non-trading equity investments designated to be measured at fair value with
changes recognized in other comprehensive income the difference between the translated amount in the
functional currency and the original amount in the functional currency is recognized in other comprehensive
income.
(3) Translation of foreign exchange statements
Prior to the conversion of the financial statements of an enterprise's overseas operations the
accounting period and policy of the overseas operations should be adjusted to conform to the accounting
period and policy of the enterprise. The financial statements of the corresponding currency (other than the
functional currency) should be prepared according to the adjusted accounting policy and the accounting
period. The financial statements of the overseas operations should be converted according to the following
methods:
* The assets and liabilities items in the balance sheet are translated at the spot exchange rate on
the balance sheet date. Except for the "undistributed profits" items the owner's equity items are
translated at the spot exchange rate when they occur.
140Annual Report 2025 of China Fangda Group Co. Ltd.
* 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.* The foreign currency translation differences arising are presented under the "Other Comprehensive
Income" item in the shareholders' equity section of the consolidated balance sheet when preparing the
consolidated financial statements.When foreign operations are disposed of and the control rights are lost the difference in foreign
currency statements related to the overseas operations that are listed in the shareholders' equity items in
the balance sheet is transferred to the profit or loss for the current period either in whole or in
proportion to the disposal of the foreign operations.
11. Financial instrument
Financial instrument refers to a company's financial assets and contracts that form other units of
financial liabilities or equity instruments.
(1) Recognition and de-recognition of financial instrument
The Company recognizes a financial asset or liability when it becomes one party in the financial
instrument contract.Financial asset is derecognized when:
* The contractual right to receive the cash flows of the financial assets is terminated;
* The financial asset is transferred and meets the following derecognization condition.If the current obligation of a financial liability (or part of it) has been discharged the Company
derecognizes the financial liability (or part of the financial liability). When the Company (borrower) and
lender enter into an agreement to replace the original financial liabilities by undertaking new financial
liabilities and the contract terms for the new financial liabilities are essentially different from those
for the original one the original financial liabilities will be derecognized and new financial liabilities
will be recognized. Where the Company makes substantial amendments to the contract terms of the original
financial liability (or part thereof) it shall terminate the original financial liability and confirm a
new financial liability in accordance with the amended terms.Financial asset transactions in regular ways are recognized and de-recognized on the transaction date.The conventional sale of financial assets means the delivery of financial assets in accordance with the
contractual terms and conditions at the time set out in the regulations or market practices. Transaction
date refers to the date when the Company promises to buy or sell financial assets.
141Annual Report 2025 of China Fangda Group Co. Ltd.
(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
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-tradeable equity instrument investment as
a financial asset measured at fair value and whose variation is included in other consolidated income. Only
142Annual Report 2025 of China Fangda Group Co. Ltd.
the relevant dividend income is included in the current profit and loss and the variation of fair value is
recognized as other consolidated income.* Financial assets measured at fair value with variations accounted into current income account
The above financial assets measured at amortized cost and other financial assets measured at fair value
and whose changes are included in other comprehensive income are classified as financial assets measured at
fair value and whose changes are included in the current profit and loss. For such financial assets fair
value is used for subsequent measurement and all changes in fair value are included in current profit and
loss.
(3) Classification and measurement of financial liabilities
The Company classifies financial liabilities into financial liabilities measured at fair value and
their changes included in the current profit and loss loan commitments and financial guarantee contract
liabilities for loans below market interest rates and financial liabilities measured at amortized cost.The subsequent measurement of financial liabilities depends on their classification:
* Financial liabilities measured at fair value with variations accounted into current income account
Such financial liabilities include transactional financial liabilities (including derivatives that are
financial liabilities) and financial liabilities designated as at fair value through profit or loss. After
the initial recognition the financial liabilities are subsequently measured at fair value. Except for the
hedge accounting the gains or losses (including interest expenses) are recognized in profit or loss.However for the financial liabilities designated as fair value and whose variations are included in the
profits and losses of the current period the variable amount of the fair value of the financial liability
due to the variation of credit risk of the financial liability shall be included in the other consolidated
income. When the financial liability is terminated the cumulative gains and losses previously included in
the other consolidated income shall be transferred out of the other consolidated income and shall be
included in the retained income.* Loan commitments and financial security contractual liabilities
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
143Annual Report 2025 of China Fangda Group Co. Ltd.
After initial recognition other financial liabilities are measured at amortized cost using the
effective interest method.Except in special circumstances financial liabilities and equity instruments are distinguished
according to the following principles:
* If the Company cannot unconditionally avoid delivering cash or other financial assets to fulfill a
contractual obligation the contractual obligation meets the definition of financial liability. While some
financial instruments do not explicitly contain terms and conditions for the delivery of cash or other
financial assets they may indirectly form contractual obligations through other terms and conditions.If a financial instrument is required to be settled with or can be settled with the Company's own
equity instruments the Company's own equity instrument used to settle the instrument needs to be
considered as a substitute for cash or other financial assets or for the holder of the instrument to enjoy
the remaining equity in the assets after all liabilities are deducted. If it is the former the instrument
is the financial liabilities of the issuer; if it is the latter the instrument is the equity instrument of
the issuer. In some cases a financial instrument contract provides that the Company shall or may use its
own instrument of interest in which the amount of a contractual right or obligation is equal to the amount
of the instrument of its own interest which may be acquired or delivered multiplied by its fair value at
the time of settlement whether the amount of the contractual right or obligation is fixed or is based
entirely or in part on a variation of a variable other than the market price of the instrument of its own
interest such as the rate of interest the price of a commodity or the price of a financial instrument
the contract is classified as a financial liability.
(4) Derivative financial instruments and embedded derivatives
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
144Annual Report 2025 of China Fangda Group Co. Ltd.
acquisition date or the subsequent balance sheet date cannot be measured separately the hybrid instrument
as a whole is designated as a financial asset or financial liability measured at fair value and whose
changes are included in the current profit or loss.
(5) Financial instrument Less
The Company shall confirm the preparation for loss on the basis of expected credit loss for financial
assets measured at amortization costs creditor's rights investments measured at fair value contractual
assets leasing receivables loan commitments and financial guarantee contracts etc.* Measurement of expected credit losses of accounts receivable
The expected credit loss refers to the weighted average of the credit losses of financial instruments
that are weighted by the risk of default. Credit loss refers to the difference between all contractual cash
flows receivable from the contract and all cash flows expected to be received by the Company at the
original actual interest rate that is the present value of all cash shortages. Among them the financial
assets which have been purchased or born by the Company shall be discounted according to the actual rate of
credit adjustment of the financial assets.The expected lifetime credit loss is the expected credit loss due to all possible default events during
the entire expected life of the financial instrument.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.
145Annual Report 2025 of China Fangda Group Co. Ltd.
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
Applicable from December 1 2025
Where there is objective evidence of impairment as well as other receivable instruments receivables
other receivables receivables financing and long-term receivables applicable to individual assessments
separate impairment tests are performed to confirm expected credit losses and prepare individual impairment.For notes receivable accounts receivable other receivables financing of receivables long-term
receivables and contract assets for which there is no objective evidence of impairment or when individual
financial assets cannot be assessed at a reasonable cost the Company divides bills receivable accounts
receivable other receivables receivable financing long-term receivables and contract assets into
several combinations based on credit risk characteristics and calculates expected credit losses on the
basis of the combination. The basis for determining the combination is as follows:
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 Portfolio 1: Receivables from curtain wall business
Accounts Receivable Portfolio 2: Receivables from platform screen door business
Accounts Receivable Portfolio 3: Receivables from new materials business
Accounts Receivable Portfolio 4: Receivables from new energy business
Accounts Receivable Portfolio 5: Receivables from commercial real estate and others
Other receivable portfolio 6 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
146Annual Report 2025 of China Fangda Group Co. Ltd.
Other receivable portfolio 4 Receivable advances
Combination of other receivables 5 Value-added tax receivable is increased and refunded
Other receivable portfolio 6 Receivables from related parties within the scope of consolidation
Other receivables portfolio 7 Other receivables
For other receivables divided into portfolios the Company refers to historical credit loss experience
combined with current conditions and predictions of future economic conditions and calculates through
default risk exposure and expected credit loss rate within the next 12 months or the entire duration
Expected credit losses.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 Completed and unsettled project not meeting collection conditions
Contract assets portfolio 2 Quality guarantee deposit not meeting collection conditions
Contract assets portfolio 3 conditional collection right of sales
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.Applicable on and before November 30 2025
Where there is objective evidence of impairment as well as other receivable instruments receivables
other receivables receivables financing and long-term receivables applicable to individual assessments
separate impairment tests are performed to confirm expected credit losses and prepare individual impairment.For notes receivable accounts receivable other receivables financing of receivables long-term
receivables and contract assets for which there is no objective evidence of impairment or when individual
financial assets cannot be assessed at a reasonable cost the Company divides bills receivable accounts
receivable other receivables receivable financing long-term receivables and contract assets into
several combinations based on credit risk characteristics and calculates expected credit losses on the
basis of the combination. The basis for determining the combination is as follows:
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
147Annual Report 2025 of China Fangda Group Co. Ltd.
default risk exposure and expected credit loss rate within the next 12 months or the entire duration
Expected credit losses.The basis for determining the combination of accounts receivable is as follows:
Accounts receivable combination 1 Accounts receivable business
Accounts receivable combination 2 Real estate receivable business
Accounts receivable combination 3 Others receivable business
Other receivable portfolio 4 Receivables from related parties within the scope of consolidation
For the accounts receivable divided into a combination the Company refers to the historical credit
loss experience combined with the current situation and the forecast of the future economic situation
compiles the account receivable age and the whole expected credit loss rate table and calculates the
expected credit loss.The basis for determining the combination of other receivables is as follows:
Other receivable portfolio 1 Interest receivable
Portfolio of other receivables 2 Dividends receivable
Other combinations of receivables 3 Deposit and margin receivable
Other receivable portfolio 4 Receivable advances
Combination of other receivables 5 Value-added tax receivable is increased and refunded
Other receivable portfolio 6 Receivables from related parties within the scope of consolidation
Other receivables portfolio 7 Other receivables
For other receivables divided into portfolios the Company refers to historical credit loss experience
combined with current conditions and predictions of future economic conditions and calculates through
default risk exposure and expected credit loss rate within the next 12 months or the entire duration
Expected credit losses.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
148Annual Report 2025 of China Fangda Group Co. Ltd.
default risk exposure and expected credit loss rate within the next 12 months or the entire duration
Expected credit losses.Other debt investment
For other receivables divided into portfolios the Company refers to historical credit loss experience
combined with current conditions and predictions of future economic conditions and calculates through
default risk exposure and expected credit loss rate within the next 12 months or the entire duration
Expected credit losses.* Lower credit risk
If the risk of default on financial instruments is low the borrower's ability to meet its contractual
cash flow obligations in the short term is strong and even if the economic situation and operating
environment are adversely changed over a long period of time it may not necessarily reduce the
receivables' performance of their contractual cash. The ability of the flow obligation the financial
instrument is considered to have a lower credit risk.* Significant increase in credit risk
The Company compares the default probability of the financial instrument during the expected lifetime
determined by the balance sheet date with the default probability of the expected lifetime during the
initial confirmation to determine the relative probability of the default probability of the financial
instrument during the expected lifetime Changes to assess whether the credit risk of financial instruments
has increased significantly since initial recognition.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;
149Annual Report 2025 of China Fangda Group Co. Ltd.
G. Whether the expected performance and repayment behavior of the debtor has changed significantly;
H. Whether the contract payment is overdue for more than (including) 30 days.Based on the nature of financial instruments the Company assesses whether credit risk has increased
significantly on the basis of a single financial instrument or combination of financial instruments. When
conducting an assessment based on a combination of financial instruments the Company can classify
financial instruments based on common credit risk characteristics such as overdue information and credit
risk ratings.If the overdue period exceeds 30 days the Company has determined that the credit risk of financial
instruments has increased significantly. Unless the Company does not have to pay excessive costs or efforts
to obtain reasonable and warranted information it proves that although it has exceeded the time limit of
30 days agreed upon in the Contract credit risks have not increased significantly since the initial
confirmation.* Financial assets with credit impairment
The Company assesses on the balance sheet date whether financial assets measured at amortized cost and
credit investments measured at fair value and whose changes are included in other comprehensive income have
undergone credit impairment. When one or more events that adversely affect the expected future cash flows
of a financial asset occur the financial asset becomes a financial asset that has suffered a credit
impairment. Evidence that credit impairment has occurred in financial assets includes the following
observable information:
Major financial difficulties have occurred to the issuer or the debtor; Breach of contract by the
debtor such as payment of interest or default or overdue of principal; (B) The concession that the debtor
would not make under any other circumstances for economic or contractual considerations relating to the
financial difficulties of the debtor; The debtor is likely to be bankrupt or undertake other financial
restructuring; The financial difficulties of the issuer or debtor lead to the disappearance of the active
market for the financial asset; To purchase or generate a financial asset at a substantial discount which
reflects the fact that a credit loss has occurred.* Presentation of expected credit loss measurement
In order to reflect the changes in the credit risk of financial instruments since the initial
recognition the Company re-measures the expected credit losses on each balance sheet date and the
increase or reversal of the loss provision resulting therefrom is included as an impairment loss or gain.Current profit and loss. For financial assets measured at amortized cost the loss allowance offsets the
book value of the financial asset listed on the balance sheet; for debt investments measured at fair value
and whose changes are included in other comprehensive income the Company Recognition of its loss
provisions in gains does not offset the book value of the financial asset.* Canceled
If it is no longer reasonably expected that the contract cash flow of the financial assets will be
fully or partially recovered the book balance of the financial assets will be directly reduced. Such
write-off constitute the derecognization of related financial assets. This usually occurs when the Company
150Annual Report 2025 of China Fangda Group Co. Ltd.
determines that the debtor has no assets or sources of income that generate sufficient cash flow to cover
the amount that will be written down.If the financial assets that have been written down are recovered in the future the reversal of the
impairment loss is included in the profit or loss of the current period.
(6) Transfer of financial assets
The transfer of financial assets refers to the following two situations:
A. Transfer the contractual right to receive cash flow of financial assets to another party;
B. Transfers the financial assets to the other party in whole or in part but reserves the contractual
right to collect the cash flow of the financial assets and undertakes the contractual obligation to pay the
collected cash flow to one or more recipients.* De-identification of transferred financial assets
Those who have transferred almost all risks and rewards in the ownership of financial assets to the
transferee or have neither transferred nor retained almost all the risks and rewards in the ownership of
financial assets but have given up control of the financial assets terminate the confirmation The
financial asset.In determining whether control over the transferred financial asset has been waived the actual
capacity of the transferor to sell the financial asset is determined. If the transferor is able to sell the
transferred financial assets wholly to a third party that does not have a relationship with them and has
no additional conditions to limit the sale it indicates the Company has waived control over the financial
assets.The Company pays attention to the essence of financial asset transfer when judging whether financial
asset transfer meets the condition of financial asset termination.If the overall transfer of financial assets meets the conditions for termination of confirmation the
difference between the following two amounts is included in the current profit and loss:
A. Continuing identification of transferred Book value；
B. The sum of the amount received as a result of the transfer and the amount accrued as a result of the
change in the fair value of the transfer in respect of the termination recognized portion of the amount
previously charged directly to the other consolidated proceeds (the financial assets involved in the
transfer are those classified in accordance with Article 18 of Enterprise Accounting Standard No. 22 -
Financial Instruments Recognition and Measurement as measured by the fair value and whose change is charged
to the other consolidated proceeds).If the partial transfer of financial assets meets the conditions for derecognization the book value of
the entire transferred financial assets will be included in the derecognized part and the unterminated part
(in this case the retained service assets are regarded as part of the continued recognition of financial
assets) Between them they are apportioned according to their respective relative fair values on the
151Annual Report 2025 of China Fangda Group Co. Ltd.
transfer date and the difference between the following two amounts is included in the current profit and
loss:
A. Termination of the book value of the recognized portion on the date of derecognization;
B. The sum of the amount received as a result of the transfer and the amount accrued as a result of the
change in the fair value of the transfer in respect of the termination recognized portion of the amount
previously charged to the other consolidated proceeds (the financial assets involved in the transfer are
those classified in accordance with Article 18 of Enterprise Accounting Standard No. 22 - Financial
Instruments Recognition and Measurement as measured by the fair value and whose change is charged to the
other consolidated proceeds).* Continue to be involved in the transferred financial assets
If neither transfer nor retain almost all the risks and rewards of the ownership of financial assets
and have not given up control of the financial assets the relevant financial assets should be confirmed
according to the extent of their continued involvement in the transferred financial assets and the
relevant liabilities should be recognized accordingly.The extent to which the transferred financial assets continue to be involved refers to the extent to
which the enterprise undertakes the risk or compensation of the value change of the transferred financial
assets.(III) Continuing identification of transferred financial assets
Where almost all risks and remuneration in relation to ownership of the transferred financial assets
are retained the whole of the transferred financial assets shall continue to be recognized and the
consideration received shall be recognized as a financial liability.The financial asset and the recognized related financial liabilities shall not offset each other. In
the subsequent accounting period the enterprise shall continue to recognize the income (or gain) generated
by the financial asset and the costs (or losses) incurred by the financial liability.
(7) Deduction of financial assets and liabilities
Financial assets and financial liabilities should be listed separately in the balance sheet and cannot
be offset against each other. However if the following conditions are met the net amount offset by each
other is listed in the balance sheet:
The Company has a statutory right to offset the confirmed amount and such legal right is currently
enforceable;
The Company plans to settle the net assets or realize the financial assets and liquidate the financial
liabilities at the same time.The transferring party shall not offset the transferred financial assets and related liabilities if it
does not meet the conditions for terminating the recognition.
152Annual Report 2025 of China Fangda Group Co. Ltd.
(8) Recognition of fair value of Finance instruments
For the method for determining the fair value of financial assets and financial liabilities see 34 (2)
in Chapter VIII V. Important accounting policies and accounting estimates.
12. Notes receivable
See Chapter VIII V Important Accounting Policies and Accounting Estimates 11. Financial Tools.
13. Account receivable
See Chapter VIII V Important Accounting Policies and Accounting Estimates 11. 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.
14. Receivable financing
See Chapter VIII V Important Accounting Policies and Accounting Estimates 11. Financial Tools.
15. Other receivables
See Chapter VIII V Important Accounting Policies and Accounting Estimates 11. Financial Tools.
16. Contract assets
The Company presents contract assets or liabilities in the balance sheet according to the relationship
between performance obligation and customer payment. The consideration for which the Company is entitled to
receive (subject to factors other than the passage of time) for the transfer of goods or the provision of
services to customers is listed as contract assets. The Company's obligation to transfer goods or provide
services to customers for consideration received or receivable from customers is listed as contractual
liabilities.Contract assets and contract liabilities are listed separately in the balance sheet. Contract assets
and contract liabilities under the same contract are listed in net amount. If the net amount is the debit
balance it shall be listed in "contract assets" or "other non current assets" according to its liquidity;
if the net amount is the credit balance it shall be listed in "contract liabilities" or "other non current
liabilities" according to its liquidity. Contract assets and contract liabilities under different contracts
cannot offset each other.For the determination method and accounting treatment method of the Company's expected credit loss of
contract assets see 11. Financial instruments in Chapter VIII V. Important accounting policies and
accounting estimates.
153Annual Report 2025 of China Fangda Group Co. Ltd.
17. Inventories
(1) Classification of inventories
Inventories refer to finished goods or merchandise held for sale in the ordinary course of business
work-in-process and materials and supplies consumed in the production process or during the rendering of
services including raw materials work-in-process semi-finished goods finished goods merchandise
inventories and reusable materials.
(2) Pricing of delivering inventory
The Company measures inventories issued using the weighted average cost method.The inventory of real estate business mainly includes inventory materials development costs
development products etc. The actual costs of development products include land transfer payment
infrastructure and facility costs installation engineering costs borrows before completion of the
development and other costs during the development process. The special maintenance funds collected in the
first period are included in the development overheads. When the control right of development products is
transferred the individual valuation method is used to determine its actual cost.
(3) Inventory system
The Company inventory adopts the perpetual inventory system counting at least once a year the
inventory profit and loss amount is included in the current year's profit and loss.
(4) Criteria for recognizing and providing for provision for decline in value of inventories
On the balance sheet date inventories are accounted depending on which is lower between the cost and
the net realizable value. If the cost is higher than the net realizable value the impairment provision
will be made.The realizable net value of inventory should be recognized based on solid evidence with the purpose of
the inventory and after-balance-sheet-date events taken into consideration.
(1) In the course of normal production and operation the net realizable value of finished goods
commodities and materials directly used for sale shall be determined by the estimated price of the
inventory minus the estimated cost of sale and related taxes. The inventory held for the execution of a
sales contract or a labor contract shall be measured on the basis of the contract price as its net
realizable value; If the quantity held is greater than the quantity ordered under the sales contract the
net realizable value of 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
154Annual Report 2025 of China Fangda Group Co. Ltd.
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.* Packages are amortized on on-off amortization basis at using.
18. Long-term share equity investment
The Group's long-term equity investment includes control on invested entities and significant impacts
on equity investment. Invested entities on which the Group has significant impacts are associates of the
Group.
(1) Basis for recognition of common control and major influence on invested entities
Common control refers to the common control of an arrangement in accordance with the relevant agreement
and the relevant activities of the arrangement must be agreed upon by the participants who share control.In determining whether there is common control the first step is to determine whether all or a group of
participants collectively control the arrangement which is considered collective control by all or a group
of participants if all or a group of participants must act together to determine the activities associated
with the arrangement. Secondly it is judged whether the decision on related activities of the arrangement
must be agreed by the participants who collectively control the arrangement. If there is a combination of
two or more parties that can collectively control an arrangement it does not constitute joint control.When judging whether there is joint control the protective rights enjoyed are not considered.Major influence refers to the power to participate in decision-making of financial and operation
policies of a company but cannot control or jointly control the making of the policies. When considering
whether the Company can impose significant 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
155Annual Report 2025 of China Fangda Group Co. Ltd.
Company cannot participate the decision-making of production and operation of the invested entity the
Company has major influence on the invested entity.
(2) Recognition of initial investment costs
Long-term equity investments formed by merger of enterprises shall be determined in accordance with the
following provisions:
A. In the case of an enterprise merger under the same control where the merging party makes a
valuation of the merger by payment of cash transfer of non-cash assets or undertaking liabilities the
share of the book value of the owner's interest in the final controlling party's consolidated financial
statements as the initial investment cost of the long-term equity investment at the date of the merger. The
difference between the initial investment cost of long-term equity investment and the cash paid the
transferred non-cash assets and the book value of the debt assumed shall be adjusted to the capital reserve;
if the capital reserve is insufficient to offset the retained earnings shall be adjusted;
Long-term equity investment generated by enterprise merger: for long-term equity investment obtained by
merger of enterprises under common control the obtained share of book value of the interests of the merged
party's owner in the consolidate financial statements on the merger date is costs; for long-term equity
investment obtained by merger of enterprises not under common control the merger cost is the investment
cost. Adjust the capital reserve according to the difference between the initial investment cost of long-
term equity investment and the total face value of the issued shares. If the capital reserve is
insufficient to offset or reduce the retained income shall be adjusted;
For merger of entities under different control the merger cost is the fair value of the asset paid
liability undertaken and equity securities issued for exchanging of control power over the entities at the
day of acquisition. Agency expenses and other administrative expenses such as auditing legal consulting
or appraisal services occurred relating to the merger of entities are accounted into current income account
when occurred.Long-term equity investments formed by merger of enterprises shall be determined in accordance with the
following provisions:
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
156Annual Report 2025 of China Fangda Group Co. Ltd.
same time the book value of the swapped-out asset and relevant taxes will be used as the initial
investment cost.D. Long-term equity investments acquired through debt restructuring determine their recorded value at
the fair value of the waived claims and other costs such as taxes directly attributable to the assets and
account for the difference between the fair value and the book value of the waived claims.
(3) Subsequent measurement and recognition of gain/loss
The Company uses the cost method to measure long-term share equity investment in which the Company can
control the invested entity; and uses the equity method to measure long-term share equity investment in
which the Company has substantial influence on the invested entity.* Cost
For the long-term equity investment measured on the cost basis except for the announced cash dividend
or profit included in the practical cost or price when the investment was made the cash dividends or
profit distributed by the invested entity are recognized as investment gains in the current gain/loss
account.Equity
Gains from long-term equity investment measured by equity
When the equity method is used to measure long-term equity investment the investment cost will not be
adjusted if the investment cost of the long-term equity investment is larger than the share of fair value
of the recognizable assets of the invested entity. When it is smaller than the share of fair value of the
recognizable assets of the invested entity the book value will be adjusted and the difference is included
in the current gains of the investment.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.
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Where substantial influence on invested entities is imposed or joint control is implemented due to
increase in investment the sum of the fair value of the original equity and increased investment on the
conversion date is the initial investment cost under the equity method. If the equity investment originally
held is classified as other equity instrument investment the difference between the fair value and the
book value as well as the accumulated gains or losses originally included in other comprehensive income
shall be transferred out of other comprehensive income and included in retained income in the current
period when the equity method is adopted.Where joint control or substantial influence on invested entities is lost due to disposal of part of
investment the remaining equity after the disposal should be treated according to the Enterprise
Accounting Standard No.22 – Recognition and Measurement of Financial Instruments from the date of losing
the joint control or substantial influence. The difference between the fair value and book value should be
accounted the profit and loss of the current period. For other misc. incomes of original share equity
investment determined using the equity method when the equity method is no longer used it should be
treated based on the same basis of the treatment of related assets or liability of the invested entities;
the other owners' interests related to the original share equity investment should be transferred to
gain/loss of the current period.
(4) Equity investment held for sale
For the remaining equity investments not classified as assets held for sale the equity method is
adopted for accounting treatment.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 24. Long-term asset impairment in Chapter VIII V. Important accounting policies and accounting
estimates.
19. Investment real estates
(1) Classification of investment real estate
Investment real estates are held for rent or capital appreciation or both. These include inter alia:
* Leased land using right
(2) the right to use the land that is transferred after holding and preparing for the increment.
* Leased building
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(2) Measurement of investment real estate
For investment real estates with an active real estate transaction market and the Company can obtain
market price and other information of same or similar real estates to reasonably estimate the investment
real estates' fair value the Company will use the fair value mode to measure the investment real estates
subsequently. Variations in fair value are accounted into the current gain/loss account.The fair value of investment real estate is determined with reference to the current market prices of
same or similar real estates in active markets; when no such price is available with reference to the
recent transaction prices and consideration of factors including transaction background date and district
to reasonably estimate the fair value; or based on the estimated lease gains and present value of related
cash flows.For investment real estate under construction (including investment real estate under construction for
the first time) if the fair value cannot be reliably determined but the expected fair value of the real
estate after completion is continuously and reliably obtained the investment real estate under
construction is measured by cost. When the fair value can be measured reliably or after completion (the
earlier one) it is measured at fair value. For an investment real estate whose fair value is proven unable
to be 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.
20. Fixed assets
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods
providing services lease or for operation & management and have more than one accounting year of service
life.
(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 &
Average age 20-50 10.00 1.80-4.50
buildings
Mechanical Average age 10.00 10.00 9.00
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equipment
Transportation
Average age 5.00 10.00 18.00
facilities
Electronics and
Average age 5.00 10.00 18.00
other devices
PV power plants Average age 20.00 5.00 4.75
21. 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.
22. Borrowing Costs
(1) Recognition principles for capitalization of borrowing expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing or production of asset
satisfying the conditions of capitalizing are capitalized and accounted as cost of related asset.
(1) Asset expenditure has occurred;
* The borrowing expense has already occurred;
* Purchasing or production activity which is necessary for the asset to reach the useful status has
already started.Other interest on loans discounts or premiums and exchange differences are included in the income and
loss incurred in the current period.If the construction or production of assets satisfying the capitalizing conditions is suspended
abnormally for over 3 months capitalizing of borrowing expenses shall be suspended. During the normal
suspension period borrowing expenses will be capitalized continuously.When the asset satisfying the capitalizing conditions has reached its usable or sellable status
capitalizing of borrowing expenses shall be terminated.
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(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.
23. Intangible assets
Recorded at the actual cost of acquisition.
(1) Amortization of intangible assets
* Useful life of intangible assets with limited useful life
Estimated useful
Item Basis
life
Land using right Term Use right assets
Reference to determine the lifetime of a company
Trademarks and patents 10 years
for which it can bring economic benefits
Reference to determine the lifetime of a company
Proprietary technology 10 years
for which it can bring economic benefits
Reference to determine the lifetime of a company
Software 5. 10 years
for which it can bring economic benefits
At the end of each year the Company will reexamine the useful life and amortization basis of
intangible assets with 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 finite useful lives the Company determines their useful life upon
acquisition and systematically amortizes them using the straight-line method over their useful life. The
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amortization amount is included in the current profit or loss of the benefiting project or added to the
cost of the related asset. The specific amortization amount is the amount after the cost is deducted from
the estimated residual value. For fixed assets for which depreciation provision is made the depreciation
rate will be determined after the accumulative depreciation provision amount is deducted. The residual
value of an intangible asset with limited useful life is treated as zero except where a third party
undertakes to purchase the intangible asset at the end of its useful life or to obtain expected residual
value information based on the active market which is likely to exist at the end of its useful life.Intangible assets with uncertain service life will not be amortized. At the end of each year the
useful life of intangible assets with uncertain useful life is reviewed and if there is evidence that the
useful life of intangible assets is limited the useful life is estimated and the system is reasonably
amortized within the expected useful life.
(2) Scope of R&D expenditures and related accounting treatment
Specific standard for distinguish between research and development stage
* The Company takes the information and related preparatory activities for further development
activities as the research stage and the intangible assets expenditure in the research stage is included
in the current profit and loss period.* The development activities carried out after the Company has completed the research stage as the
development stage.Specific conditions for capitalization of expenditures in the development phase
Expenditures in the development phase can be recognized as intangible assets only when the following
conditions are met:
A. It is technically feasible to complete the intangible asset so that it can be used or sold;
B. Have the intention to complete the intangible asset and use or sell it;
C. The way intangible assets generate economic benefits including the ability to prove that the
products produced by the intangible assets exist in the market or the intangible assets themselves exist in
the market and the intangible assets will be used internally which can prove their usefulness;
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.
24. 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:
162Annual Report 2025 of China Fangda Group Co. Ltd.
The Company judges whether there is a sign of impairment to assets on the balance sheet day. If such
sign exists the Company estimates the recoverable amount and conducts the impairment test. Impairment test
is conducted annually for goodwill generated by mergers and intangible assets that have not reached the
useful condition no matter whether the impairment sign exists.The recoverable amount is determined by the higher of the net of fair value minus disposal expense and
the present value of the predicted future cash flow. The Company estimates the recoverable amount on the
individual asset item basis; whether it is hard to estimate the recoverable amount on the individual asset
item basis determine the recoverable amount based on the asset group that the assets belong to. The assets
group is determined by whether the main cash flow generated by the Group is independent from those
generated by other assets or assets groups.When the recoverable amount of the assets or assets group is lower than its book value the Company
writes down the book value to the recoverable amount the write-down amount is accounted into the current
income account and the assets impairment provision is made.For goodwill impairment test the book value of goodwill generated by mergers is amortized through
reasonable measures since the purchase day to related asset groups; those cannot be amortized to related
assets groups are amortized to related combination of asset groups. The related asset groups or combination
of asset groups refer to those that can benefit from the synergistic effect of mergers and must not exceed
to the reporting range determined by the Company.When the impairment test is conducted if there is sign of impairment to the asset group or combination
of asset groups related to goodwill first perform impair test for asset group or combination of asset
groups without goodwill and calculate the recoverable amount and recognize the related impairment loss.Then conduct impairment test on those with goodwill compare the book value with recoverable amount. If the
recoverable amount is lower than the book value recognize the impairment loss of the goodwill.Once recognized the asset impairment loss cannot be written back in subsequent accounting period.
25. Long-term amortizable expenses
The long-term deferred expenses shall be used to calculate the expenses that have occurred but should
be borne by the Company in the current and subsequent periods with a amortization period of more than one
year. The Company's long-term deferred expenses are amortized averagely during the benefit period.
26. Contract liabilities
See 16. Contract assets in Chapter VIII V. Important Accounting Policies and Accounting Estimates for
details.
27. Staff remuneration
(1) Accounting of operational leasing
* Basic salary of employees (salary bonus allowance subsidy)
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In the accounting period for which the staff and workers provide services the Company shall confirm
the actual short-term remuneration as liabilities and shall account for the current income and loss except
as required or permitted by other accounting standards.* Employee welfare
The employee benefits incurred by the Company shall be included in the current profit and loss or
related asset costs according to the actual amount incurred. Where the employee's benefit is non-monetary
it shall be measured on the basis of fair value.* Social insurance premiums and housing accumulation funds such as health insurance premiums work
injury premiums birth insurance premiums trade union funds and staff and education funds
The Company pays the medical insurance premiums work injury insurance premiums birth insurance
premiums etc. social insurance premiums and housing accumulation funds for the staff and workers as well
as the union funds and the staff and workers education funds according to the regulations in the
accounting period for which the staff and workers provide services the corresponding salary amount of the
staff and workers and confirms the corresponding liabilities which are included in the current profit and
loss or related asset costs.* Short-term paid leave
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.
164Annual Report 2025 of China Fangda Group Co. Ltd.
(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.
28. 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.
29. Revenue
Disclosure of accounting policies adopted for revenue recognition and measurement by business type
(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.
165Annual Report 2025 of China Fangda Group Co. Ltd.
If there are two or more performance obligations in the contract the Company will allocate the
transaction price to each single performance obligation according to the relative proportion of the
separate selling price of the goods or services promised by each single performance obligation on the start
date of the contract and measure the income according to the transaction price allocated to each single
performance obligation.The transaction price refers to the amount of consideration that the Company is expected to be entitled
to receive due to the transfer of goods or services to customers excluding the amount collected on behalf
of a third party. When determining the contract transaction price if there is a variable consideration
the Company shall determine the best estimate of the variable consideration according to the expected value
or the most likely amount and include it in the transaction price with the amount not exceeding the
accumulated recognized income when the relevant uncertainty is eliminated which is most likely not to have
a significant reversal. If there is a significant financing component in the contract the Company will
determine the transaction price according to the amount payable in cash when the customer obtains the
control right of the commodity. The difference between the transaction price and the contract consideration
will be amortized by the effective interest method during the contract period. If 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;
166Annual Report 2025 of China Fangda Group Co. Ltd.
* The Company has transferred the legal ownership of the goods to the customer that is the customer
has the legal ownership of the goods;
* The Company has transferred the goods in kind to the customer that is the customer has possessed
the goods in kind;
* The Company has transferred the main risks and rewards of the ownership of the goods to the customer
that is the customer has obtained the main risks and rewards of the ownership of the goods;
* The product has been accepted by the customer.Sales return clause
For the sales with sales return clauses when the customer obtains the control right of the relevant
goods the Company shall recognize the revenue according to the amount of consideration it is entitled to
obtain due to the transfer of the goods to the customer and recognize the amount expected to be returned
due to the sales return as the estimated liability; at the same time the Company shall deduct the
estimated cost of recovering the goods according to the book value of the expected returned goods at the
time of transfer( The balance after deducting the value of the returned goods is recognized as an asset
that is the cost of return receivable which is carried forward by deducting the net cost of the above
assets according to the book value of the transferred goods at the time of transfer. On each balance sheet
date the Company re estimates the return of future sales and re measures the above assets and liabilities.Warranty obligations
According to the contract and legal provisions the Company provides quality assurance for the goods
sold and the projects constructed. For the guarantee quality assurance to ensure that the goods sold meet
the established standards the Company conducts accounting treatment in accordance with the accounting
standards for Business Enterprises No. 13 - contingencies. For the service quality assurance which provides
a separate service in addition to guaranteeing that the goods sold meet the established standards the
Company takes it as a single performance obligation allocates part of the transaction price to the service
quality assurance according to the relative proportion of the separate selling price of the goods and
service quality assurance and recognizes the revenue when the customer obtains the service control right.When evaluating whether the quality assurance provides a separate service in addition to assuring customers
that the goods sold meet the established standards the Company considers whether the quality assurance is
a statutory requirement the quality assurance period and the nature of the Company's commitment to
perform the task.Customer consideration payable
If there is consideration payable to the customer in the contract unless the consideration is to
obtain other clearly distinguishable goods or services from the customer the Company will offset the
transaction price with the consideration payable and offset the current income at the later time of
confirming the relevant income or paying (or promising to pay) the customer's consideration.Contractual rights not exercised by customers
If the Company advances sales of goods or services to customers the amount shall be recognized as
liabilities first and then converted into income when relevant performance obligations are fulfilled. When
167Annual Report 2025 of China Fangda Group Co. Ltd.
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) Specific methods
The specific methods of revenue recognition of the Company are as follows:
* Commodity sales contract
The commodity sales contract between the company and the customer includes the performance obligation
of transferring curtain wall materials screen door materials electric energy etc. which belongs to the
performance obligation at a certain time point.Revenue from domestic sales of products is recognized at the time when the customer obtains the right
of control of the goods on the basis of comprehensive consideration of the following factors: the Company
has delivered the products to the customer according to the contract the customer has accepted the goods
the payment for goods has been recovered or the receipt has been obtained and the relevant economic
benefits are likely to flow in the main risks and rewards of the ownership of the goods have been
transferred the legal ownership has been transferred;
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
168Annual Report 2025 of China Fangda Group Co. Ltd.
main risks and rewards of the ownership of goods have been transferred and the legal ownership of goods
has been transferred.* Service contract
The service contract between the Company and its customers includes the performance obligations of
metro platform screen door operation maintenance curtain wall maintenance and property services. As the
Company's performance at the same time the customers obtain and consume the economic benefits brought by
the Company's performance the Company takes it as the performance obligation within a certain period of
time and allocates it equally during the service provision period.* Engineering contract
The project contract between the Company and the customer includes the performance obligations of
curtain wall project and metro platform screen door project construction. As the customer can control the
goods under construction in the process of the Company's performance the Company takes them as the
performance obligations within a certain period of time and recognizes the income according to the
performance progress except that the performance progress cannot be reasonably determined. The Company
determines the performance schedule of providing construction services according to the input method. The
performance schedule shall be determined according to the proportion of the actual contract cost to the
estimated total contract cost.* Real estate sales contract
The income of the Company's real estate development business is recognized when the control of the
property is transferred to the customer. The income is recognized when the customer obtains the physical
ownership or legal ownership of the completed property and the Company has obtained the current right of
collection and is likely to recover the consideration. When confirming the contract transaction price if
the financing component is significant the Company will adjust the contract commitment consideration
according to the financing component of the contract.
(3) Adoption of different business models for the same type of business involving different revenue recognition and
measurement methods
There is no difference in revenue recognition due to the adoption of different accounting policies for
similar businesses.
30. 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;
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* This cost increases the Company's future resources for fulfilling its performance obligations.* The cost is expected to be recovered.If the incremental cost incurred by the Company to obtain the contract is expected to be recovered it
shall be recognized as an asset as the contract acquisition cost.The assets related to the contract cost shall be amortized on the same basis as the income from goods
or services related to the assets; however if the amortization period of the contract acquisition cost is
less than one year the Company shall include it in the current profit and loss when it occurs.If the book value of the assets related to the contract cost is higher than the difference between the
following two items the Company will make provision for impairment for the excess part and recognize it as
the loss of asset impairment and further consider whether the estimated liabilities related to the loss
contract should be made:
* The residual consideration expected to be obtained due to the transfer of goods or services related
to the asset;
* The estimated cost to be incurred for the transfer of the relevant goods or services.If the above provision for impairment of assets is subsequently reversed the book value of the asset
after reversal shall not exceed the book value of the asset on the reversal date without provision for
impairment.The contract performance cost recognized as an asset with an amortization period of no more than one
year or one normal business cycle at the time of initial recognition shall be listed in the "inventory"
item and the amortization period of no more than one year or one normal business cycle at the time of
initial recognition shall be listed in the "other non current assets" item.The contract acquisition cost recognized as an asset shall be listed in the item of "other current
assets" when the amortization period does not exceed one year or one normal business cycle at the time of
initial recognition and listed in the item of "other non current assets" when the amortization period
exceeds one year or one normal business cycle at the time of initial recognition.
31. 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.
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(3) Recognition of government subsidies
* Assets-related
Government subsidies related to assets are obtained by the Company to purchase build or formulate in
other manners long-term assets; or subsidies related to benefits. If the asset-related government subsidy
is recognized as deferred gain should be recorded in gain and loss in the service life. Government subsidy
measured at the nominal amount is accounted into current income account. If the relevant assets are sold
transferred scrapped or damaged before the end of their useful life the unallocated relevant deferred
income balance shall be transferred to the profit and loss of the current period of disposition of the
assets.Gain-related government subsidy should be accounted as follows:
The Company divides government subsidies into assets-related and earnings-related government subsidies.Gain-related government subsidy should be accounted as follows:
Subsidy that will be used to compensate related future costs or losses should be recognized as deferred
gain and recorded in the gain and loss of the current report and offset related cost;
Subsidy that is used to compensate existing cost or loss should be recorded in the gain and loss of the
current period or offset related cost.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.
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32. Differed income tax assets and differed income tax liabilities
The Company uses the temporary difference between the book value of the assets and liabilities on the
balance sheet day and the tax base and the liabilities method to recognize the deferred income tax. 26.Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets
For deductible temporary discrepancies deductible losses and tax offsets that can be carried forward
for future years the impact on income tax is calculated at the estimated income tax rate for the transfer-
back period and the impact is recognized as deferred income tax assets provided that the Company is likely
to obtain future taxable income for deductible temporary discrepancies deductible losses and tax offsets.At the same time the impact on income tax of deductible temporary discrepancies resulting from the
initial recognition of assets or liabilities in transactions or matters with the following characteristics
is inconclusive as deferred income tax assets:
A. The transaction is not a business combination;
B. the transaction is not a merger and the transaction does not affect the accounting profit or taxable
proceeds;
However for individual transactions that simultaneously meet the above two conditions and result in
equal taxable temporary differences and deductible temporary differences upon initial recognition of assets
and liabilities the exemption from initial recognition of deferred tax liabilities and deferred tax assets
does not apply. For taxable temporary differences and deductible temporary differences arising from the
initial recognition of assets and liabilities in such transactions the Company recognizes the
corresponding deferred tax liabilities and deferred tax assets at the time of the transaction.In the event of temporary discrepancy of deductible investment related to subsidiaries joint ventures
and joint ventures and meeting the following two conditions the amount of impact (talent) on income tax
shall be deemed as deferred income tax assets:
A. Temporary discrepancies are likely to be reversed in the foreseeable future;
B. In the future it is likely to obtain taxable income that can be used to offset the deductible
temporary differences;
On the balance sheet date if there is conclusive evidence that sufficient taxable income is likely to
be obtained in the future to offset the deductible temporary differences the deferred income tax assets
that have not been recognized in the previous period are recognized.On the balance sheet day the Company re-examines the book value of the deferred income tax assets. If
it is unlikely to have adequate taxable proceeds to reduce the benefits of the deferred income tax assets
less the deferred income tax assets' book value. When there is adequate taxable proceeds the lessened
amount will be reversed.
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(2) Deferred income tax assets
All provisional differences in taxable income of the Company shall be measured on the basis of the
estimated income tax rate for the period of transfer-back and shall be recognized as deferred income tax
liabilities except that:
At the same time the impact on income tax of deductible temporary discrepancies resulting the initial
recognition of assets or liabilities in transactions or matters with the following characteristics is
inconclusive as deferred income tax Liabilities:
A. Initial recognition of goodwill;
B. Initial recognition of goodwill or of assets or liabilities generated in transactions with the
following features: the transaction is not a merger and the transaction does not affect the accounting
profit or taxable proceeds;
* In the event of temporary discrepancy of deductible investment related to subsidiaries Joint
venture joint ventures and meeting the two conditions the amount of impact (talent) on income tax shall
be deemed as deferred income tax assets:
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
173Annual Report 2025 of China Fangda Group Co. Ltd.
are treated as deductible temporary differences. When it is expected that sufficient taxable income is
likely to be obtained in the future period when it is expected to be available to make up for losses or tax
deductions the corresponding deferred income tax assets are recognized within the limit of the taxable
income that is likely to be obtained while reducing the current period Income tax expense in the income
statement.B. Compensable uncovered losses of the merged company due to business merger
In a business combination if the Company obtains the deductible temporary difference of the purchased
party and does not meet the deferred income tax asset recognition conditions on the purchase date it shall
not be recognized. Within 12 months after the purchase date if new or further information is obtained
indicating that the relevant conditions on the purchase date already exist and the economic benefits
brought about by the temporary difference are expected to be deducted on the purchase date confirm the
relevant delivery. Deferred income tax assets while reducing goodwill if the goodwill is not enough to
offset the difference is recognized as the current profit and loss; except for the above circumstances
the deferred tax assets related to the business combination are recognized and included in the current
profit and loss.* Temporary difference caused by merger offset
If there is a temporary difference between the book value of assets and liabilities in the consolidated
balance sheet and the taxable basis of the taxpayer due to the offset of the unrealized internal sales gain
or loss the deferred income tax asset or the deferred income tax liability is confirmed in the
consolidated balance sheet and the income tax expense in the consolidated profit statement is adjusted
with the exception of the deferred income tax related to the transaction or event directly included in the
owner's equity and the merger of the enterprise.* Share payment settled by equity
If the tax law provides for allowable per-tax deduction of expenses related to share payment within
the period for which the cost and expense are recognized in accordance with the accounting standards the
Company shall calculate the tax basis and temporary discrepancy based on the estimated per-tax deduction
amount at the end of the accounting period and confirm the relevant deferred income tax if it meets the
conditions for confirmation. Of these the amount that can be deducted before tax in the future exceeds the
cost related to share payment recognized in accordance with the accounting standards and the excess income
tax shall be directly included in the owner's equity.* Dividends related to financial instruments classified as equity instruments
For financial instruments classified as equity instruments where the Company is the issuer any
dividend expenditure that is deductible for corporate income tax purposes according to tax policy is
recognized for its income tax impact when the dividends payable are recognized. If the distributed profits
originate from transactions or events previously affecting profit or loss the income tax impact of such
dividends is included in the current profit or loss. If the distributed profits originate from transactions
or events previously recognized in equity the income tax impact of such dividends is included in equity
items.
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(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.
33. Leasing
(1) Identification of lease
On the commencement date of the contract the company evaluates whether the contract is a lease or
includes a lease. If 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.
175Annual Report 2025 of China Fangda Group Co. Ltd.
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:
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 28. Estimated liabilities in Chapter VIII V. important
accounting policies and accounting estimates for details. If the above costs are incurred for the
production of inventories they will be included in the cost of inventories.Depreciation of right of use assets is accrued by using the straight-line method. If it can be
reasonably determined that the ownership of the leased asset will be obtained at the expiration of the
lease term the depreciation rate shall be determined according to the asset category of the right to use
and the estimated net residual value rate within the expected remaining service life of the leased asset;
If it is impossible to reasonably determine that the ownership of the leased asset will be obtained at the
expiration of the lease term the depreciation rate shall be determined according to the asset category of
the right of use within the shorter of the lease term and the remaining service life of the leased asset.* Lease liabilities
The lease liabilities are initially measured Company shall according to the present value of the unpaid
lease payments at the beginning of the lease term. The lease payment includes the following five items:
Fixed payment amount and substantial fixed payment amount. If there is lease incentive the relevant
amount of lease incentive shall be deducted;
Variable lease payments depending on index or ratio;
The exercise price of the purchase option provided that the lessee reasonably determines that the
option will be exercised;
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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.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
The Company recognizes lease receipts as rental income over the lease term on a straight-line basis (or
another systematic and rational method). Initial direct costs incurred are capitalized and amortized on the
same basis as rental income recognition with the amortization charged to profit or loss over the relevant
periods. 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.
177Annual Report 2025 of China Fangda Group Co. Ltd.
(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; B. The increased consideration is equivalent to the amount
adjusted according to the conditions of the contract at the separate price for most of the expansion of the
lease scope.* The lease change is not treated as a separate lease
A. The Company as lessee
On the effective date of the lease change the Company reconfirmed the lease term and discounted the
changed lease payment at the revised discount rate to re-measure the lease liability. When calculating the
present value of the lease payment after the change the implicit interest rate of the lease during the
remaining lease period shall be used as the discount rate; If it is impossible to determine the implicit
interest rate of the lease for the remaining lease period the incremental loan interest rate on the
effective date of the lease change shall be used as the discount rate.The impact of the above lease liability adjustment shall be accounted for according to the following
circumstances:
If the lease scope is reduced or the lease term is shortened due to the lease change the book value of
the right to use assets shall be reduced and the relevant gains or losses of partial or complete
termination of the lease shall be included in the current profits and losses;
For other lease changes the book value of the right to use assets shall be adjusted accordingly.The Company as leasor
If the operating lease is changed the Company will treat it as a new lease for accounting from the
effective date of the change and the amount of lease receipts received in advance or receivable related to
the lease before the change is regarded as the amount of new lease receipts.If the change of financial lease is not accounted for as a separate lease the Company will deal with
the changed lease under the following circumstances: if the change of lease takes effect on the lease
commencement date and the lease will be classified as an operating lease the Company will account for it
as a new lease from the effective date of lease change and take the net lease investment before the
effective date of lease change as the book value of leased assets; If the lease change takes effect on the
lease commencement date the lease will be classified as a financial lease and the Company will conduct
accounting treatment in accordance with the provisions on modifying or renegotiating the contract.
(6) Sale and lease-back
The Company assesses and determines whether the asset transfer in the sale and leaseback transaction is
a sale in accordance with the provisions of 29. Income in Chapter VIII V Important accounting policies
and accounting estimates.
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* 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 11。 Financial instrumentsin Chapter VIII V Important accounting policies and accounting estimates. 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 11. Financial instruments in
Chapter VIII V. Important accounting policies and accounting estimates. If the asset transfer belongs to
sales the Company shall conduct accounting treatment for asset purchase and asset lease in accordance with
other applicable accounting standards for business enterprises.
34. 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.
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(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.* 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
180Annual Report 2025 of China Fangda Group Co. Ltd.
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 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
181Annual Report 2025 of China Fangda Group Co. Ltd.
the income statement. The amortization date for adjustments should begin from the adjustment date and
should not be later than the point at which hedging gains and losses are adjusted upon termination of the
hedged item. For hedged items that are financial assets (or components thereof) measured at fair value with
changes in fair value recognized in other comprehensive income the accumulated hedging gains or losses
should be amortized in the same manner and recognized in the income statement. However the carrying amount
of the financial assets (or components thereof) should not be adjusted.For hedged items that are unrecognized firm commitments (or components thereof) the cumulative fair
value changes caused by the hedging risk after the hedging relationship is designated should be recognized
as an asset or liability. The related gains or losses should be recognized in the income statement. When
fulfilling a firm commitment and acquiring an asset or assuming a liability the initial recognized amount
of the asset or liability should be adjusted to include the cumulative fair value changes of the designated
hedged item that have been recognized.* Cash flow hedge
The part of hedging tool gains or losses that is valid for hedging is recognized as other comprehensive
income as a cash flow hedging reserve and the part that is invalid for hedging (that is other gains or
losses after deducting other comprehensive income) are counted Into the current profit and loss. The
amount of cash flow hedging reserve is determined according to the lower of the absolute amounts of the
following two items: * accumulated gains or losses of hedging instruments since the hedging. The amount in
the effective arbitrage is recognized by the accumulative gains or losses from the starting of arbitrage
and accumulative changes to the current value of future forecast cash flows from the start of arbitrage.If the expected transaction of the hedged asset is subsequently recognized as a non-financial asset or
non-financial liability or if the expected transaction of the non-financial asset or non-financial
liability forms a defined commitment to the applicable fair value hedge accounting the amount of the cash
flow hedge reserve originally recognized in the other consolidated income is transferred out to account for
the initial recognized amount of the asset or liability. For the remaining cash flow hedges during the
same period when the expected cash flow to be hedged affects the profit and loss if the expected sales
occur the cash flow hedge reserve recognized in other comprehensive income is transferred out and included
in the current profit and loss.* 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.
182Annual Report 2025 of China Fangda Group Co. Ltd.
(2) 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.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
183Annual Report 2025 of China Fangda Group Co. Ltd.
to the first level input value. The input value of the third level is the unobservable input value of the
related asset or liability.
(3) Significant accounting judgment and estimate
The Company continuously reviews significant accounting judgment and estimate adopted for the
reasonable forecast of future events based on its historical experience and other factors. Significant
accounting judgment and assumptions that may lead to major adjustment of the book value of assets and
liabilities in the next accounting year are listed as follows:
Classification of financial assets
The major judgments involved in the classification of financial assets include the analysis of business
model and contract cash flow characteristics.The company determines the business mode of managing financial assets at the level of financial asset
portfolio taking into account such factors as how to evaluate and report financial asset performance to
key managers the risks that affect financial asset performance and how to manage it and how to obtain
remuneration for related business managers.When the company assesses whether the contractual cash flow of financial assets is consistent with the
basic borrowing arrangement there are the following main judgments: whether the principal may change due
to early repayment and other reasons during the duration of the period or the amount of change; whether the
interest Including the time value of money credit risk other basic borrowing risks and consideration of
costs and profits. For example does the amount paid in advance reflect only the unpaid principal and the
interest based on the unpaid principal as well as the reasonable compensation paid for early termination
of the contract.Measurement of expected credit losses of accounts receivable
The Company calculates the expected credit loss of accounts receivable through the risk exposure of
accounts receivable default and the expected credit loss rate and determines the expected credit loss rate
based on the default probability and the default loss rate. When determining the expected credit loss rate
the Company uses internal historical credit loss experience and other data combined with current
conditions and forward-looking information to adjust the historical data. When considering forward-looking
information the indicators used by the Company include the risks of economic downturn changes in the
external market environment technological environment and customer conditions. The Company regularly
monitors and reviews assumptions related to the calculation of expected credit losses.Deferred income tax assets
If there is adequate taxable profit to deduct the loss the deferred income tax assets should be
recognized by all the unused tax loss. This requires the management to make a lot of judgment to forecast
the time and amount of future taxable profit and determine the amount of the deferred tax assets based on
the taxation strategy.Income recognition
184Annual Report 2025 of China Fangda Group Co. Ltd.
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.
35. Major changes in accounting policies and estimates
1. Changes in important accounting policies
□ Applicable □ Inapplicable
(2) Changes in major accounting estimates
□ Applicable □ Inapplicable
In RMB
185Annual Report 2025 of China Fangda Group Co. Ltd.
Account policy changes and Statement item materially
Effective time Affected amount
reasons affected
With the development of
businesses across various Account receivable -12480875.74
industries the Company has
continuously refined its
customer risk management for Contract assets (including the
different sectors and enhanced portion reclassified to other -10411746.48
its management capabilities. non-current assets)
Based on a comprehensive
assessment of the composition
of receivables (including notes Notes receivable -12572159.65
receivable accounts
receivable contract assets
and other receivables) related Other receivables -3311535.99
to curtain wall platform
screen door new materials new
energy and commercial real
estate businesses as well as Credit impairment ("-" for loss) -28364571.38
differences in customer risk
profiles and historical credit
1 December 2025
loss experience the Company Investment impairment loss ("-"
has changed its accounting -10411746.48for loss)
estimates. This change is made
prudently in accordance with
Accounting Standards for
Business Enterprises No. 22—
Recognition and Measurement of
Financial Instruments No. 28—
Changes in Accounting Policies
Changes in Accounting Estimates
and Correction of Errors and
Total profit -38776317.86
other relevant provisions and
is aligned with the actual
business characteristics and
operating conditions in order
to present the Company's
financial position and
operating results more
objectively and fairly.On April 3 2026 China Fangda Group Co. Ltd. convened the 14th meeting of the Audit Committee of the
10th Board of Directors and the 16th meeting of the 10th Board of Directors which reviewed and approved
the proposal regarding the current change in accounting estimate and resolved to implement the change
effective December 1 2025.
(3) Implementation of new accounting standards adjustment for the first time starting from 2025
and implementation of financial statement related items at the beginning of the year for the first time
□ Applicable □ Inapplicable
186Annual Report 2025 of China Fangda Group Co. Ltd.
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
Taxable turnover 1 5 7
tax
Enterprise income tax Taxable income See the following table
Education surtax Taxable turnover 3
Local education surtax Taxable turnover 2
For ad valorem assessment the
tax is levied at 1.2% of the
residual value after a one-time
deduction of 30% from the
Property tax 1.2 12
original value of the property;
for rental-based assessment the
tax is levied at 12% of rental
income.Tax rates applicable for different tax payers
Tax payer Income tax rate
The Company 25%
Shenzhen Fangda Construction Technology Co. Ltd. (hereinafter Fangda
15%
Construction Technology)
Fangda Zhiyuan Technology Co. Ltd. (hereinafter Fangda Zhiyuan) 15%
Fangda New Material (Jiangxi) Co. Ltd. (hereinafter Fangda Jiangxi New
25%
Material)
Jiangxi Fangda Intelligent Manufacturing Technology Co. Ltd. (hereinafter
15%
referred to as Fangda Intelligent Manufacturing Company)
Chengdu Fangda Construction Technology Co. Ltd. (hereinafter Fangda Chengdu
15%
Technology)
Shanghai Fangda Zhijian Technology Co. Ltd. (hereinafter referred to as
15%
Fangda Shanghai Zhijian company)
Shenzhen Fangda Yunzhu Technology Co. Ltd. (hereinafter Fangda Yunzhu) 15%
Dongguan Fangda New Material Co. Ltd. (hereinafter Fangda Dongguan New
25%
Material)
Shanghai Fangda Jianzhi Technology Co. Ltd. (hereinafter Fangda Shanghai
25%
Jianzhi)
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
20%
Energy)
Dongguan Fangda New Energy Co. Ltd. (hereinafter Fangda Dongguan New Energy) 20%
Shenzhen Qianhai Kechuangyuan Software Co. Lt.d (hereinafter Kechuangyuan
15%
Software)
Fangda Zhiyuan Technology (Hong Kong) Co. Ltd (Fangda Zhiyuan Hong Kong) 16.50%
Fangda Zhiyuan Technology (Wuhan) Co. Ltd (Fangda Wuhan Zhiyuan) 25%
187Annual Report 2025 of China Fangda Group Co. Ltd.
Fangda Zhiyuan Technology (Nanchang) Co. Ltd (Fangda Nanchang Zhiyuan) 25%
Fangda Zhiyuan Railway Transportation Equipment (Dongguan) Co. Ltd.
20%
(hereinafter referred to as Fangda Zhiyuan Dongguan)
General Rail Technology Private Limited 17%
Shihui International Holding Co. Ltd. (hereinafter Fangda Shihui
0.00%
International)
Shenzhen Fangda Investment & Holding Co. Ltd. (hereinafter referred to as
25%
"Fangda Investment & Holding")
Fangda Australia Pty Ltd 30%
Shenzhen Fangda Yunzhi Technology Co. Ltd. (hereinafter Fangda Yunzhi) 25%
Shenzhen Zhongrong Litai Investment Co. Ltd. (Zhongrong Litai) 25%
Chengdu Fangda Curtain Wall Technology Co. Ltd. (hereinafter Fangda Chengdu
20%
Curtain Wall)
Fangda Southeast Asia Co. Ltd. (hereinafter Fangda Southeast Asia) 20%
Fangda Construction Technology (Hong Kong) Co. Ltd. (hereinafter Fangda
16.50%
Construction Technology Hong Kong)
Shenzhen Yunzhu Testing Technology Co. Ltd. (Hereinafter Fangda Yunzhu
20%
Testing)
Shenzhen Fangda Jianchuang Technology Co. Ltd. (hereinafter Fangda
25%
Jianchuang)
Shenzhen Fangda Construction Technology Co. Ltd. (hereinafter referred to as
20%
Fangda Construction Technology Company)
Fangda Facade Singapore Pte Ltd (hereinafter referred to as Curtain Wall
17%
Singapore Company)
FANGDA FACADE PHILIPPINES INC. (hereinafter referred to as Curtain Wall
20%
Philippines Company)
GENERAL RAIL TECHNOLOGY PHILIPPINES INC. (hereinafter referred to as Zhiyuan
25%
Philippines Company)
FANGDA GULF DMCC (hereinafter referred to as Curtain Wall Gulf Company) 9%
FANGDA FACADE CONTRACTING L.L.C (hereinafter referred to as "Fangda Facade
9%
UAE")
Fangda Facade (NSW) Pty Ltd (Curtain Wall Sydney Company) 30%
GLOBAL MEGA INTERNATIONAL HOLDINGS LIMITED (hereinafter referred to as GLOBAL
20%
MEGA INTERNATIONAL)
2. Tax preference
(1) On December 26 2024 the subsidiary Fangda Construction Technology obtained the certificate of
high-tech enterprise jointly issued by the Industry and Information Technology Bureau of Shenzhen
Municipality Shenzhen Finance Bureau State Administration of Taxation and Shenzhen Taxation Bureau. The
certificate number is GR202444207062. Within three years after obtaining the qualification of high-tech
enterprise (from 2024 to 2026) the income tax will be levied at 15%.
(2) On December 26 2024 the subsidiary Fangda Zhiyuan Technology Co. Ltd. obtained the certificate
of high tech enterprise jointly issued by the Industry and Information Technology Bureau of Shenzhen
Municipality Shenzhen Finance Bureau State Administration of Taxation and Shenzhen Taxation Bureau. The
certificate number is GR202444201506. Within three years after obtaining the qualification of high tech
enterprise (from 2024 to 2026) the income tax will be levied at 15%.
(3) On October 16 2023 the subsidiary Fangda Chengdu Technology obtained the certificate of high tech
enterprise No. GR202351000927 jointly issued by the Department of Science and Technology of Sichuan
Province the Department of Finance of Sichuan Province the State Administration of Taxation and the
188Annual Report 2025 of China Fangda Group Co. Ltd.
Sichuan Provincial Taxation Bureau. Within three years after obtaining the qualification of high tech
enterprise (2023-2025) the income tax will continue to be levied at 15%.
(4) On November 15 2023 the subsidiary Fangda Shanghai Zhijian obtained the certificate of high tech
enterprise GR202331002267 jointly issued by Shanghai Science and Technology Commission Shanghai Finance
Bureau and Shanghai Taxation Bureau. Within three years (from 2023 to 2025) after obtaining the
qualification of high tech enterprise the income tax will continue to be charged at 15%.
(5) On November 15 2023 the subsidiary Fangda Yunzhu Co. Ltd. obtained the certificate of high tech
enterprise jointly issued by Shenzhen Science and Technology Innovation Commission Shenzhen Finance Bureau
State Administration of Taxation and Shenzhen Taxation Bureau. The certificate number is GR202344205791.Within three years after obtaining the qualification of high tech enterprise (from 2023 to 2025) the
income tax will be levied at 15%.
(6) The subsidiary Kechuangyuan Software is an enterprise located in Qianhai Shenzhen Hong Kong Modern
Service Industry Cooperation Zone. Its main business meets the conditions of Preferential Catalogue of
Enterprise Income Tax in Qianhai Shenzhen Hong Kong Modern Service Industry Cooperation Zone (2021)(the
Regulation shall be implemented from January 1 2021 to December 31 2026) and the income tax is levied at
15%.
(7) Pursuant to the "Announcement of the Ministry of Finance and the State Taxation Administration on
Further Implementation of Income Tax Preferential Policies for Small and Micro-sized Enterprises"
(Announcement No. 13 of 2022) the "Announcement on Income Tax Preferential Policies for Small and Micro-
sized Enterprises and Self-employed Businesses" (Announcement No. 6 of 2023) and the "Announcement of the
Ministry of Finance and the State Taxation Administration on Further Supporting the Development of Small
and Micro-sized Enterprises and Self-employed Businesses with Respect to Relevant Tax Policies"
(Announcement No. 12 of 2023) certain subsidiaries qualified as small and micro-sized enterprises in 2025
and are subject to enterprise income tax in accordance with the aforementioned announcements.VII. Notes to the consolidated financial statements
1. Monetary capital
In RMB
Item Closing balance Opening balance
Inventory cash: 697.90 148.01
Bank deposits 1122843849.53 1052461034.10
Other monetary capital 278447555.29 439316159.73
Total 1401292102.72 1491777341.84
Including: total amount
53171687.0076232428.11
deposited in overseas
Others:
(1) Of the closing balance of bank deposits RMB44021919.51 was restricted in use comprising
judicially frozen funds of RMB10494858.12 interest on time deposits of RMB58081.29 regulated funds
189Annual Report 2025 of China Fangda Group Co. Ltd.
designated for specific purposes amounting to RMB29840625.90 and other restricted funds totaling
RMB3628354.20. Of the closing balance of other monetary funds RMB266304635.32 was restricted in use
primarily consisting of bankers' acceptance deposit guarantees interim guarantee deposits letter of
guarantee issuance deposits and funds in transit. 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.
2. Transactional financial assets
In RMB
Item Closing balance Opening balance
Financial assets measured at fair value with
variations accounted into current income 410.06
account
Of which: Bank wealth management products 410.06
Total 410.06
3. Derivative financial assets
In RMB
Item Closing balance Opening balance
Futures contracts 1459950.00
Total 1459950.00
4. Notes receivable
(1) Classification of notes receivable
In RMB
Item Closing balance Opening balance
Bank acceptance 57188013.94 39584331.31
Commercial acceptance 64590049.06 34303362.93
Total 121778063.00 73887694.24
(2) Disclosure by bad debt accrual method
In RMB
Closing balance Opening balance
Remaining book Bad debt Remaining book Bad debt
Type value provision Book value provision Book
Propor Amoun Provisio value Proport Amoun Provisio value
Amount Amount
tion t n rate ion t n rate
Notes
receivable 135779 14001 121778 745309 64325 73887694
100.00%10.31%100.00%0.86%
with 716.10 653.10 063.00 50.99 6.75 .24
provision
190Annual Report 2025 of China Fangda Group Co. Ltd.
for bad
debts by
portfolio
Including
:
Bank 57188 57188 395843 39584331
42.12%53.11%
acceptance 013.94 013.94 31.31 .31
Commercial 78591 14001 64590 349466 64325 34303362
57.88%17.82%46.89%1.84%
acceptance 702.16 653.10 049.06 19.68 6.75 .93
135779140011217787453096432573887694
Total 100.00% 10.31% 100.00% 0.86%
716.10653.10063.0050.996.75.24
Provision for bad debts by combination: bank acceptance
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Bank acceptance 57188013.94 0.00 0.00%
Total 57188013.94 0.00
Provision for bad debts by combination: trade acceptance
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Commercial acceptance 78591702.16 14001653.10 17.82%
Total 78591702.16 14001653.10
Group recognition basis:
See 11. Financial Tools in Chapter VIII V Important Accounting Policies and Accounting Estimates
for the recognition criteria and instructions for withdrawing bad debt reserves by portfolio
If the provision for bad debts on accounts receivable is being made based on the expected credit loss
general model:
□ Applicable □ Inapplicable
(3) Bad debt provision made returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Opening
Type Written-back Closing balancebalance Provision Canceled Others
or recovered
Commercial
643256.7513358396.3514001653.10
acceptance
Total 643256.75 13358396.35 14001653.10
Including significant recovery or reversal:
□ Applicable □ Inapplicable
191Annual Report 2025 of China Fangda Group Co. Ltd.
(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 30948234.15
Commercial acceptance 9833296.73
Total 40781530.88
5. Account receivable
(1) Account age
In RMB
Age Closing balance of book value Opening balance of book value
Within 1 year (inclusive) 376385477.08 535457065.77
1-2 years 227631352.53 197202489.75
2-3 years 157587249.50 196353916.70
Over 3 years 726362340.42 568801528.90
3-4 years 155218151.25 173116205.07
4-5 years 120919200.03 134492519.77
Over 5 years 450224989.14 261192804.06
5-6 years 246826836.71
6-7 years 85242705.07 Inapplicable
Over 7 years 118155447.36
Total 1487966419.53 1497815001.12
The Company needs to comply with the disclosure requirements of the decoration and decoration
industry in the Guidelines for the Self-discipline and Supervision of Listed Companies of Shenzhen Stock
Exchange No. 3 - Industry Information Disclosure.Significant individual amounts of accounts receivable in the curtain wall and materials industry that
have exceeded three years in age
Balance of accounts Whether there is
Balance of provision for
Customer receivable of over 3 Reason of the age a risk of
bad debts (RMB)
years (RMB) recovery
Customer credit
Customer 1 123109266.41 72907803.33 Yes
status deteriorates
Customer credit
Customer 2 54873223.21 54873223.21 Yes
status deteriorates
Customer credit
Customer 3 32018569.51 19211141.71 Yes
status deteriorates
Customer credit
Customer 4 29503796.47 23967717.56 Yes
status deteriorates
Customer credit
Customer 5 28809949.90 18447127.44 Yes
status deteriorates
192Annual Report 2025 of China Fangda Group Co. Ltd.
Customer credit
Customer 6 28793219.55 28491561.21 Yes
status deteriorates
Customer 7 20239681.65 10640642.80 Long settlement cycle No
Customer credit
Customer 8 19541985.85 15787612.38 Yes
status deteriorates
Customer credit
Customer 9 18700831.94 18700831.94 Yes
status deteriorates
Customer credit
Customer 10 17374148.42 17374148.42 Yes
status deteriorates
Customer credit
Customer 11 16492469.99 7763862.08 Yes
status deteriorates
Customer 12 14371672.93 7304441.08 Long settlement cycle No
Customer credit
Customer 13 13461834.96 13461834.96 Yes
status deteriorates
Customer credit
Customer 14 11154105.00 11154105.00 Yes
status deteriorates
(2) Disclosure by bad debt accrual method
In RMB
Closing balance Opening balance
Remaining book value Bad debt provision Remaining book value Bad debt provision
Type Book Book
Proporti Provisio Proporti Provisio
Amount Amount value Amount Amount value
on n rate on n rate
Account
receivab
le for
which
194500172387221126127640979879296529
bad debt 13.07% 88.63% 8.51% 76.77%
400.69766.7333.96916.8387.5229.31
provisio
n is
made by
group
Includ
ing:
1.
548732548732548732548732
Customer 3.69% 100.00% 0.00 3.66% 100.00%
23.2123.2123.2123.21
2.
455070429148259220472105236052236052
Customer 3.06% 94.30% 3.15% 50.00%
85.0282.442.5877.5688.7988.77
3.
134618134618134618134618
Customer 0.90% 100.00% 0.00 0.90% 100.00%
34.9634.9634.9634.96
4.
709642709642709642354821354821
Customer 0.48% 100.00% 0.00 0.47% 50.00%
1.001.001.000.500.50
5.
197222197222499886249943249943
Customer 1.33% 100.00% 0.00 0.33% 50.00%
54.1454.140.100.060.04
6.
388860233316155544
Customer 2.61% 60.00%
78.4547.0731.38
7.9915000.67%59490060.00%396600
193Annual Report 2025 of China Fangda Group Co. Ltd.
Customer 0.00 0.00 0.00
8. Other
503850503850
customer 0.34% 100.00% 0.00
3.913.91
s
Account
receivab
le for
which
129346430062863403137017276320109385
bad debt 86.93% 33.25% 91.49% 20.17%
6018.84095.57923.274084.29816.623267.67
provisio
n is
made by
group
Includ
ing:
1.
Portfoli
o 1:
Curtain 929090 382281 546809
62.44%41.15%
wall 693.39 446.58 246.81
business
receivab
les
2.12015880.23%27056022.52%931020
Portfoli 1352.19 899.59 452.60
o 2:
Platform
177576382955139280
screen 11.93% 21.57%
351.4027.37824.03
door
business
receivab
les
3.
Portfoli
o 3: New
material 108037 426900 103768
7.26%3.95%5011933.35%1717773.43%484015
s 986.27 5.77 980.50 23.56 4.28 49.28
business
receivab
les
4.
Portfoli
o 4: New
262631131315249499
energy 1.77% 5.00% 280900 1.88% 152952 5.45% 265605
29.436.4772.96
business 72.40 5.72 46.68
receivab
les
5.
Portfoli
o 5:
Commerci
524978390295485948
al real 3.53% 7.43% 903833 6.03% 251261 2.78% 878707
58.359.3898.97
estate 36.14 7.03 19.11
and
other
receivab
194Annual Report 2025 of China Fangda Group Co. Ltd.
les
148796602449885516149781374308112350
Total 100.00% 40.49% 100.00% 24.99%
6419.53862.30557.235001.12804.146196.98
Separate bad debt provision: separate provision
In RMB
Opening balance Closing balance
Name
Remaining book Bad debt Remaining book Bad debt
Provision rate Reason
value provision value provision
Due to certain
1. Customer 1 54873223.21 54873223.21 54873223.21 54873223.21 100.00%
customers
2. Customer 2 47210577.56 23605288.79 45507085.02 42914882.44 94.30% experiencing
prolonged non-
3. Customer 3 13461834.96 13461834.96 13461834.96 13461834.96 100.00% payment
material debt
4. Customer 4 7096421.00 3548210.50 7096421.00 7096421.00 100.00%
defaults
5. Customer 5 4998860.10 2499430.06 19722254.14 19722254.14 100.00% bankruptcy
reorganization
6. Customer 6 38886078.45 23331647.07 60.00% or similar
circumstances
7. Customer 7 9915000.00 5949000.00 60.00% the Company
has determined
that full
recovery of
receivables
from these
customers is
uncertain. In
accordance
8. Other with the
5038503.915038503.91100.00%
customers prudence
principle the
Company has
individually
provided for
impairment
losses on
these accounts
receivable.Total 127640916.83 97987987.52 194500400.69 172387766.73
Bad debt provision by portfolio: Portfolio 1: Curtain wall business receivables
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 193396954.28 9669847.69 5.00%
1-2 years 142488723.59 28497744.72 20.00%
2-3 years 105103593.43 26275898.36 25.00%
3-4 years 96348934.35 33722127.02 35.00%
4-5 years 93402372.04 42031067.42 45.00%
5-6 years 108866523.21 65319913.93 60.00%
6-7 years 84791633.64 72072888.59 85.00%
195Annual Report 2025 of China Fangda Group Co. Ltd.
Over 7 years 104691958.85 104691958.85 100.00%
Total 929090693.39 382281446.58
Group recognition basis:
See 11. Financial Tools in Chapter VIII V Important Accounting Policies and Accounting Estimates
for the recognition criteria and instructions for withdrawing bad debt reserves by portfolio
Bad debt provision by portfolio: Portfolio 2: Platform screen door business receivables
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 67079150.77 670791.51 1.00%
1-2 years 41821251.41 3345700.11 8.00%
2-3 years 17858570.89 3571714.18 20.00%
3-4 years 30471497.81 12188599.12 40.00%
4-5 years 6090526.91 4263368.84 70.00%
Over 5 years 14255353.61 14255353.61 100.00%
Total 177576351.40 38295527.37
Bad debt provision by portfolio: Portfolio 3: New materials business receivables
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 68862940.96 688629.38 1.00%
1-2 years 26702188.50 1335109.43 5.00%
2-3 years 9566410.63 956641.06 10.00%
3-4 years 1982076.04 396415.21 20.00%
4-5 years 64318.91 32159.46 50.00%
Over 5 years 860051.23 860051.23 100.00%
Total 108037986.27 4269005.77
Bad debt provision by portfolio: Portfolio 4: New energy business receivables
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 12303649.40 615182.47 5.00%
1-2 years 9805984.58 490299.23 5.00%
2-3 years 4153495.45 207674.77 5.00%
Total 26263129.43 1313156.47
Bad debt provision by portfolio: Portfolio 5: Commercial real estate and other receivables
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
196Annual Report 2025 of China Fangda Group Co. Ltd.
Less than 1 year 33050286.15 330502.85 1.00%
1-2 years 3817774.69 190888.73 5.00%
2-3 years 10394417.17 1559162.58 15.00%
3-4 years 4874916.49 1462474.95 30.00%
4-5 years 1333.96 800.38 60.00%
Over 5 years 359129.89 359129.89 100.00%
Total 52497858.35 3902959.38
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
Written- ClosingType Opening balance
Provision back or Canceled Others balance
recovered
Separate bad debt
97987987.5274399779.21172387766.73
provision
Provision for bad
debts by 276320816.62 160605310.49 6869566.78 -5535.24 430062095.57
combination
Total 374308804.14 235005089.70 6869566.78 -5535.24 602449862.30
(4) Written-off account receivable during the period
In RMB
Item Amount
Account receivable written off 6869566.78
(5) Accounts receivable and contract assets with the top-5 ending balances grouped by party owed
In RMB
Closing balance
Percentage of
of provision
Closing balance total ending
Closing balance for bad debts
Closing balance of of accounts balance of
Entity of contract on accounts
accounts receivable receivable and accounts
assets receivable and
contract assets receivable and
impairment of
contract assets
contract assets
No.1 123432623.99 0.00 123432623.99 3.21% 72988642.72
No.2 52231883.49 59502595.73 111734479.22 2.92% 8025671.36
No.3 20540802.50 64743536.53 85284339.03 2.23% 16394225.22
No.4 8967200.00 66626539.51 75593739.51 1.98% 11231443.86
No.5 13818177.32 50340031.78 64158209.10 1.68% 9526641.12
Total 218990687.30 241212703.55 460203390.85 12.02% 118166624.28
197Annual Report 2025 of China Fangda Group Co. Ltd.
6. Contract assets
(1) Contract assets
In RMB
Closing balance Opening balance
Item Remaining book Bad debt Remaining book Bad debt
Book value Book value
value provision value provision
Completed
and
unsettled
project
funds that 2007031514.79 197762492.62 1809269022.17 2303529715.41 196836354.61 2106693360.80
fail to meet
the
collection
conditions
Quality
guarantee
deposit that
fails to 332521906.40 27924265.40 304597641.00 262289726.50 24254807.14 238034919.36
meet the
collection
conditions
Sales funds
with
conditional 52852539.43 727775.89 52124763.54
collection
right
Less:
Contract
assets shown
125214302.349438790.60115775511.74160412051.4511257487.71149154563.74
in other
non-current
assets
Total 2214339118.85 216247967.42 1998091151.43 2458259929.89 210561449.93 2247698479.96
(2) The amount and reason for the significant change in the book value during the reporting period
In RMB
Item Change Reason
Primarily attributable to contract
Completed and unsettled project funds assets related to engineering
that fail to meet the collection -297424338.63 contracting contracts that met billing
conditions conditions during the year being
reclassified to accounts receivable.Mainly due to the increase in warranty
Quality guarantee deposit that fails to
66562721.64 deposits that have not met the
meet the collection conditions
collection conditions
Primarily attributable to the decrease
in material sales proceeds subject to
conditional collection rights; this
Sales funds with conditional collection
-52124763.54 period proceeds from material sales
right
with simple settlement procedures have
been reclassified to accounts receivable
for accounting purposes.
198Annual Report 2025 of China Fangda Group Co. Ltd.
Less: Contract assets shown in other Mainly due to lower outstanding
-33379052.00
non-current assets warranties on completed projects
Total -249607328.53 ——
(3) Disclosure by bad debt accrual method
In RMB
Closing balance Opening balance
Remaining book value Bad debt provision Remaining book value Bad debt provision
Type Book Book
Proport Provisio Proporti Provisio
Amount Amount value Amount Amount value
ion n rate on n rate
Separate
bad debt 8992352. 899235 162885 903324 725532
0.41%100.00%0.66%55.46%
provisio 88 2.88 76.53 7.20 9.33
n
Includin
g:
Customer 4520033. 452003
0.20%100.00%
1573.57
Customer 1683276. 168327
0.08%100.00%
2516.51
Customer 1011124. 101112 145106 725532 725532
0.05%100.00%0.59%50.00%
3934.9358.669.339.33
Customer 1777917. 177791 177791 177791
0.08%100.00%0.07%100.00%
4877.877.877.87
Provisio
n for
bad 2205346 207255 199809 244197 201528 224044
99.59%9.40%99.34%8.25%
debts by 765.97 614.54 1151.43 1353.36 202.73 3150.63
combinat
ion
Includin
g:
Portfoli
o 1:
Complete
d and
unsettle
d
1998039188770180926228632187097209923
project 90.23% 9.45% 93.01% 8.18%
161.91139.739022.189426.34333.232093.11
not
meeting
collecti
on
conditio
ns
Portfoli
o 2:
Quality
guarante 20730760 184854 188822 102789 137030 890862
9.36%8.92%4.18%13.33%
e 4.06 74.81 129.25 387.59 93.61 93.98
deposit
not
meeting
199Annual Report 2025 of China Fangda Group Co. Ltd.
collecti
on
conditio
ns
Combinat
ion 3:
sales
payment
528525727775.521247
with 2.15% 1.38%
39.438963.54
conditio
nal
collecti
on right
2214339216247199809245825210561224769
Total 100.00% 9.77% 100.00% 8.57%
118.85967.421151.439929.89449.938479.96
Separate bad debt provision: separate provision
In RMB
Opening balance Closing balance
Name
Remaining book Bad debt Remaining book Bad debt
Provision rate Reason
value provision value provision
Due to certain
Customer 1 4520033.57 4520033.57 100.00% customers of
the Company
experiencing
prolonged non-
Customer 2 1683276.51 1683276.51 100.00% payment
material debt
defaults and
Customer 3 14510658.66 7255329.33 1011124.93 1011124.93 100.00% bankruptcy
reorganization
the Company
has determined
that there is
uncertainty
regarding the
full recovery
of contract
assets related
to these
customers. In
accordance
Customer 4 1777917.87 1777917.87 1777917.87 1777917.87 100.00% with the
prudence
principle the
Company has
individually
provided
impairment
allowances for
the contract
assets of
these
customers.Total 16288576.53 9033247.20 8992352.88 8992352.88
200Annual Report 2025 of China Fangda Group Co. Ltd.
Bad debt provision by portfolio: Portfolio 1: Completed but unbilled construction receivables not yet
meeting billing conditions
In RMB
Closing balance
Name Remaining book
Bad debt provision Provision rate
value
Completed and unsettled project
funds that fail to meet the 1998039161.91 188770139.73 9.45%
collection conditions
Total 1998039161.91 188770139.73
Group recognition basis:
See 11. Financial Tools in Chapter VIII V Important Accounting Policies and Accounting Estimates for
the recognition criteria and instructions for withdrawing bad debt reserves by portfolio
Bad debt provision by portfolio: Portfolio 2: Retention receivables not yet meeting billing conditions
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Quality guarantee
deposit that fails to
207307604.0618485474.818.92%
meet the collection
conditions
Total 207307604.06 18485474.81
Bad debt provision by portfolio: Portfolio 3: Sales proceeds with conditional rights to payment
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Sales funds with
conditional collection 0.00 0.00 0.00%
right
Total 0.00 0.00
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 Written off Other change
or reversed in the
Item Provision Reason
during the current
period period
Other changes are
7255329.33 primarily due to
Separate bad debt customers previously
7214435.01
provision provided for
individually under
contract assets being
201Annual Report 2025 of China Fangda Group Co. Ltd.
reclassified to
accounts receivable.Provision for bad
debts by 6530406.95 802995.14
combination
Total 13744841.96 802995.14 7255329.33 ——
(5) Contract assets actually written off during the current period
In RMB
Item Amount
Contract assets actually written off 802995.14
7. Receivable financing
(1) Presentation of receivables financing classification
In RMB
Item Closing balance Opening balance
Notes receivable 4568000.10
Total 4568000.10
(2) Disclosure by bad debt accrual method
In RMB
Closing balance Opening balance
Remaining book Remaining book
Bad debt provision Bad debt provision
Type value Book value Book
Proporti Provisio value Proporti Provisio value
Amount Amount Amount Amount
on n rate on n rate
Provisio
n for
bad 456800 456800
100.00%0.000.00%
debts by 0.10 0.10
combinat
ion
Includin
g:
Bank
456800456800
acceptan 100.00% 0.00 0.00%
0.100.10
ce
456800456800
Total 100.00% 0.00 0.00%
0.100.10
(3) Receivables financing endorsed or discounted by the Company and not yet due as of the balance sheet
date
In RMB
Item De-recognized amount Not de-recognized amount
Bank acceptance 33761787.71
Total 33761787.71
202Annual Report 2025 of China Fangda Group Co. Ltd.
8. Other receivables
In RMB
Item Closing balance Opening balance
Other receivables 120173307.70 168322524.80
Total 120173307.70 168322524.80
(1) Other receivables
1) Other receivables are disclosed by nature
In RMB
By nature Closing balance of book value Opening balance of book value
Deposit and pledge paid 78067608.63 101364611.15
Construction borrowing and
37322734.0539950652.16
advanced payment
Staff borrowing and petty cash 2942771.01 3221577.94
VAT refund receivable 527217.36 642493.02
Refundable advance payments 2713230.50 18884265.12
Others 10806871.89 12294754.02
Total 132380433.44 176358353.41
(2) Account age
In RMB
Age Closing balance of book value Opening balance of book value
Within 1 year (inclusive) 17089433.93 45432663.12
1-2 years 7682149.15 11015466.34
2-3 years 10634476.62 4495902.18
Over 3 years 96974373.74 115414321.77
3-4 years 2289785.12 3882310.18
4-5 years 3229224.11 9518614.26
Over 5 years 91455364.51 102013397.33
Total 132380433.44 176358353.41
The Company needs to comply with the disclosure requirements of the decoration and decoration industry in
the Guidelines for the Self-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No.
3 - Industry Information Disclosure.
Significant individual amounts of other accounts receivable in the curtain wall and materials industry that have exceeded three
years in age
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 credit status
Customer 1 1770840.51 1770840.51 Yes
deteriorates
Customer credit status
Customer 2 1150000.00 412500.00 Yes
deteriorates
Customer 3 1586520.17 713934.08 Performance bond No
203Annual Report 2025 of China Fangda Group Co. Ltd.
Total 4507360.68 2897274.59
(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 132380 122071 120173 176358 803582 168322
100.00%9.22%100.00%4.56%
debts by 433.44 25.74 307.70 353.41 8.61 524.80
combinat
ion
Includin
g:
First 114617 192810 112689 167771 249826 165273
86.59%1.68%95.13%1.49%
stage 240.74 3.44 137.30 508.00 5.50 242.50
Second 960353 337933 622420 314359 94307.7 304928
7.25%35.19%1.78%3.00%
stage 7.62 5.58 2.04 0.00 0 2.30
Third 815965 689968 125996 544325 544325
6.16%84.56%3.09%100.00%
stage 5.08 6.72 8.36 5.41 5.41
132380122071120173176358803582168322
Total 100.00% 9.22% 100.00% 4.56%
433.4425.74307.70353.418.61524.80
Bad debt provision by portfolio: Stage 1
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Portfolio 3: deposit and
74212037.531089166.391.47%
margin receivable
Combination 4: Advances
33834318.73593422.941.75%
receivable
Portfolio 5: VAT refund
527217.365272.171.00%
receivable
Portfolio 7: Other
6043667.12240241.943.98%
receivables
Total 114617240.74 1928103.44
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.Bad debt provision by portfolio: Stage 2
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Portfolio 3: deposit and
2129187.67879423.9141.30%
margin receivable
204Annual Report 2025 of China Fangda Group Co. Ltd.
Combination 4: Advances
3463081.821434706.3641.43%
receivable
Portfolio 7: Other
4011268.131065205.3126.56%
receivables
Total 9603537.62 3379335.58
Bad debt provision by portfolio: Stage 3
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Portfolio 3: deposit and
1726383.431726383.43100.00%
margin receivable
Combination 4: Advances
25333.5025333.50100.00%
receivable
Portfolio 7: Other
6407938.155147969.7980.34%
receivables
Total 8159655.08 6899686.72
Provision for bad debts based on general model of expected credit losses
In RMB
First stage Second stage Third stage
Expected credit loss
Expected credit loss
Bad debt provision Expected credit for the entirefor the entire Total
losses in the next 12 duration (credit
duration (no credit
months impairment has
impairment)
occurred)
Balance on Wednesday
2498265.5094307.705443255.418035828.61
January 1 2025
Balance on Wednesday
January 1 2025 in
the current period
Provision -560105.77 3285027.88 1456431.31 4181353.42
Transferred back in
0.000.000.000.00
the current period
Written off in the
0.000.000.000.00
current period
Canceled in the
9825.480.000.009825.48
current period
Other change 230.81 0.00 0.00 -230.81
Balance on Wednesday
1928103.443379335.586899686.7212207125.74
December 31 2025
Criteria for stage division and provision ratios for bad debts
Platform
Curtain
Other screen New materials New energy Commercial real
wall
receiva Basis door Business business estate
Business
bles Business category and others
category
category
Stage 1 Not due or due within 30 days 5.00% 1.00% 1.00% 1.00% 1.00%
Overdue for more than 30 days Provision is made based on the corresponding aging brackets of accounts
Stage 2 but no credit impairment has receivable by business category applying the respective provision
occurred ratios.Stage 3 Overdue for more than 30 days Individual recognition
205Annual Report 2025 of China Fangda Group Co. Ltd.
and credit impairment has
occurred
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 Written-
Closing
balance Provision back or Write-off Others balance
recovered
Provision for bad
8035828.614181353.429825.48230.8112207125.74
debts by combination
Total 8035828.61 4181353.42 9825.48 230.81 12207125.74
5) Other receivable written off in the current period
In RMB
Item Amount
Other receivable written off 9825.48
6) 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
6000000.00 2-3 years
Shenzhen Yikang Real Estate Margin and
Over 5 57.46% 760626.76
Co. Ltd. current account 70062675.83
years
Shenzhen Dakang Joint-Stock Over 5
Deposit 8000000.00 6.04% 80000.00
Cooperative Company years
Shenzhen Ganshang Joint Over 5
Others 3791089.25 2.86% 2531120.89
Investment Co. Ltd. years
Bangshen Electronics Over 5
Deposit 3000000.00 2.27% 30000.00
(Shenzhen) Co. Ltd. years
Shenzhen Tongmeng Decoration Reimbursable
2473230.50 1-3 years 1.87% 571351.88
Technology Co. Ltd. expenses
Total 93326995.58 70.50% 3973099.53
9. Prepayment
(1) Account ages of prepayments
In RMB
Age Closing balance Opening balance
206Annual Report 2025 of China Fangda Group Co. Ltd.
Amount Proportion Amount Proportion
Less than 1 year 15477666.96 75.85% 17938392.45 76.81%
1-2 years 527430.05 2.58% 1949630.86 8.35%
2-3 years 1346844.99 6.60% 1404616.03 6.01%
Over 3 years 3056026.16 14.97% 2062396.77 8.83%
Total 20407968.16 23355036.11
At the end of the period there are no important prepayments exceeding one year in age.
(2) Balance of top 5 prepayments at the end of the period
The total of top5 prepayments in terms of the prepaid entities in the period is RMB5261681.15
accounting for 25.78% of the total prepayments at the end of the period.
10. Inventories
Whether the Company needs to comply with disclosure requirements of the real estate industry.Yes
(1) Classification of inventories
The Company needs to comply with the disclosure requirements of the real estate industry in the
Guidelines for the Self-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 -
Industry Information Disclosure.Classified by nature:
In RMB
Closing balance Opening balance
Provision for Provision for
inventory inventory
depreciation depreciation
Item Remaining book or contract Remaining book or contract
Book value Book value
value performance value performance
cost cost
impairment impairment
provision provision
Development
202021658.94202021658.94230990938.09230990938.09
cost
Development
116643162.6823306214.7493336947.94124380755.91124380755.91
products
Contract
performance 81997883.89 81997883.89 102358825.07 102358825.07
costs
Raw materials 111622459.00 111622459.00 111139470.37 111139470.37
Product in
100255413.90100255413.9091796788.9691796788.96
process
Finished goods
41225785.9641225785.968694704.458694704.45
in stock
OEM materials 19692260.21 19692260.21 13483327.00 13483327.00
Goods
27530506.8527530506.8520251212.3020251212.30
delivered
Materials in 7375501.87 7375501.87 2570386.59 2570386.59
207Annual Report 2025 of China Fangda Group Co. Ltd.
transit
Total 708364633.30 23306214.74 685058418.56 705666408.74 705666408.74
Development cost and capitalization rate of its interest are disclosed as follows:
In RMB
Includi
Transfe Increas ng:
Accumul
Estimat rred to Other e capital
Estimat ative
ed develop decreas (develo ized
Startin ed Opening Closing capital Capital
Item total ment e in pment interes
g time finish balance balance ized source
investm product this cost) t for
time interes
ent in this period in this the
t
period period current
period
Dakang
Village
1 Decembe 36000
Project 201016 202021
Decembe r 31 00000.in 423.09 658.94 Own
r 2028 2034 00
Shenzhe funds
n and
Fangda bank
Bangshe Not applicable; see notes loans
2997429974
n below the table for
515.00515.00
Industr details.y Park
36000
23099029974202021
Total -- -- 00000. --
938.09515.00658.94
00
Note: On November 6 2017 Fangda Property Co. Ltd. a subsidiary of the Company entered into the
"Co-Development Agreement for the Fangda Bangshen Industrial Park (provisional name) Urban Renewal
Project" with Bangshen Electronics (Shenzhen) Co. Ltd. agreeing to jointly advance this "industrial-to-
industrial" urban renewal project under a co-development model. During project implementation objective
factors—including policy adjustments related to the "Lixin Lake Area Integrated Planning" in Bao'an
District Shenzhen and changes in the market environment—continuously impeded progress making it
impossible to proceed as originally planned. After amicable negotiations both parties formally signed a
termination agreement on November 10 2025 mutually agreeing to terminate the aforementioned co-
development agreement. Effective from the date of effectiveness of the termination agreement Fangda
Property Co. Ltd. will no longer participate in the subsequent development or related operations of the
Fangda Bangshen Industrial Park project.Disclose the main project information of "Development Products" according to the following format:
In RMB
Including:
Accumulative capitalized
Completion Opening Closing
Item Increase Decrease capitalized interest for
time balance balance
interest the current
period
Phase I of December 29 15532505.9 15532505.9
549009.88
Fangda Town 2016 7 7
Nanchang April 27 108848249. 7737593.23 101110656. 3921815.11
208Annual Report 2025 of China Fangda Group Co. Ltd.
Fangda 2021 94 71
Center
124380755.116643162.
Total -- 7737593.23 4470824.99
9168
(2) Provision for inventory depreciation and contract performance cost impairment provision
The inventory depreciation provision is disclosed as follows:
Classified by nature:
In RMB
Increase in this period Decrease in this period
Opening Closing
Item Recover or Remarksbalance Provision Others Others balance
write-off
Development
23306214.7423306214.74
products
Total 23306214.74 23306214.74
Classification by major project:
In RMB
Increase in this period Decrease in this period
Opening Closing
Item Recover or Remarksbalance Provision Others Others balance
write-off
Nanchang Fangda
0.0023306214.7423306214.74
Center
Total 0.00 23306214.74 23306214.74
(3) Capitalization rate of interest in the closing inventory balance
As of December 31 2025 the capitalized amount of borrowing costs included in inventory balances
was RMB4470824.99. The calculation basis and criteria for borrowing costs are disclosed in Note 22
"Borrowing Costs" under Section V "Significant Accounting Policies and Accounting Estimates" of Part
VIII.
11. Other current assets
In RMB
Item Closing balance Opening balance
Reclassification of VAT debit
280607689.94292626079.84
balance
Overpayment and prepayment of
13030950.3611197246.58
income tax
Other prepaid taxes 4482.73 949974.83
Payment to be collected on behalf
3003841.893003841.89
of suppliers
Total 296646964.92 307777143.14
209Annual Report 2025 of China Fangda Group Co. Ltd.
12. Long-term share equity investment
In RMB
Change (+-) Balanc
Beginni e of
ng Dec Investment Other impair
balance Othe Cash ment
Invest Opening rea gain and miscelIncre r dividend Impai Closinof sed loss laneou provised book ased equi or rment Othe g bookimpairm inv recognized s ion atentity value
ent inves ty profit provi rs
value
est using the income the
provisi tment chan announce sionmen equity adjust end of
ons ge dt method ment the
period
1. Joint venture
2. Associate
Shenzh
en
Gansha
ng
24028412403
Joint 410.96.50252.46
Invest
ment
Co.Ltd.Jiangx
i
Busine
ss
Innova
-30585
tive 5428813
23702740392.1
Proper 2.47.307
ty
Joint
Stock
Co.Ltd.-32988
Subtot 5669097
23702329644.6
al 3.97.343
-32988
5669097
Total 23702329 644.6
3.97.343
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 6516131.63 6519740.17
210Annual Report 2025 of China Fangda Group Co. Ltd.
value with variations accounted into
current income account
Total 6516131.63 6519740.17
14. Investment real estates
(1) Investment real estate measured at costs
□ Applicable □ Inapplicable
(2) Investment real estate measured at fair value
□ Applicable □ Inapplicable
In RMB
Item Houses & buildings Total
I. Opening balance 5835036098.20 5835036098.20
II. Change in this period -286664671.70 -286664671.70
Add: external purchase 24075324.78 24075324.78
Less: disposal 30008027.81 30008027.81
Change in fair value 280731968.67 280731968.67
III. Closing balance 5548371426.50 5548371426.50
The Company needs to comply with the disclosure requirements of the real estate industry in the
Guidelines for the Self-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 -
Industry Information Disclosure.Disclosure of investment real estate measured at fair value by projects
In RMB
Rental income Change Reason for
Completion Building Opening Closing fair
Item Location in the report in fair the change
time area fair value value
period value and report
Primarily
due to the
decline in
fair value
resulting
from the
current
Fangda
period's
Town
11 October 4816996 463094986 valuation;
commercial Shenzhen 92470.58 84671638.31 -3.86%
2017 153.02 6.00 reference
and office
appraisal
buildings
report
"Shen
Guoyu
Valuation
Report No.[2026]0101
4."
Primarily
28
Fangda 38064435 376551400. due to the
Shenzhen December 20464.75 15481027.41 -1.08%
Building 0.00 00 decline in
2002
fair value
211Annual Report 2025 of China Fangda Group Co. Ltd.
resulting
from the
current
period's
valuation;
reference
appraisal
report
"Shen
Guoyu
Valuation
Report No.[2026]0101
4."
Primarily
due to the
decline in
fair value
resulting
from the
current
period's
Nanchang
December 41555240 327427177. valuation;
Fangda Nanchang 38165.36 13937159.19 -21.21%
10 2020 3.00 00 reference
Center
appraisal
report
"Shen
Guoyu
Valuation
Report No.[2026]0101
5."
Reference
appraisal
report
Nanchang
"Shen
Fangda 2 August 18587784 185877848.Nanchang 85472.88 6371217.17 0.00% Guoyu
Technology 2005 8.00 00
Valuation
Park
Report No.[2026]0101
6."
Primarily
attributab
le to
additions
disposals
and
changes in
Dongguan
fair value
Zhuhai 35965344 27565135.5
Others 2351.95 129223.09 -23.36% during the
Shaoguan .18 0
current
etc.period.Refer to
the
appraisal
reports
indexed as
"Shen Guo
212Annual Report 2025 of China Fangda Group Co. Ltd.
Yu
Appraisal
No.[2026]0101
7-1 to -
6".
120590265.15835036554837142
Total 238925.52 -4.91%
7098.206.50
Whether the Company has investment real estate in the current construction period
□ Yes □ No
Whether there is new investment real estate measured at fair value in the report period
□ Yes □ No
Newly-added investment real estate measured by fair value in the current period:
In RMB
Different
Original accounting Original book Recorded fair Closing fair handling
Item Change time
method value value value method and
basis
Changes in
Newly acquired through
fair value
settlement of
September– recognized in
Others construction 21386994.79 21386994.79 15701723.50
December 2025 profit or
receivables with
loss for the
property.period.Total 21386994.79 21386994.79 15701723.50
(3) Investment real estate without ownership certificate
In RMB
Item Book value Reason
3 units at Lanzhou Railway - City The developer is completing the
2606238.53
Dawn relevant procedures
15. Fixed assets
In RMB
Item Closing balance Opening balance
Fixed assets 940980113.90 939548074.59
Disposal of fixed assets 1346269.80
Total 940980113.90 940894344.39
(1) Fixed assets
In RMB
Electronics
Houses & Mechanical Transportation PV power
Item and other Total
buildings equipment facilities plants
devices
I. Original
book value:
213Annual Report 2025 of China Fangda Group Co. Ltd.
1. Opening 1187481480.
856161214.35128885604.1221320277.1951360255.80129754129.46
balance 92
2. Increase in
23945388.8111434828.35348518.215802795.91997411.9142528943.19
this period
(1) Purchase 441598.49 11434828.35 348518.21 5801200.18 997411.91 19023557.14
(2) Transfer-
in of
23503790.3223503790.32
construction
in progress
(3) Other
1595.731595.73
increases
3. Decrease in
66049.001107225.01980448.081532083.911184005.134869811.13
this period
(1) Disposal
66049.001107225.01972075.111530164.751184005.134859519.00
or retirement
(2) Other
8372.971919.1610292.13
decrease
4. Closing 1225140612.
880040554.16139213207.4620688347.3255630967.80129567536.24
balance 98
II.Accumulative
depreciation
1. Opening
87653570.3059286500.0815592743.4232441506.8452954004.49247928325.13
balance
2. Increase in
19456697.127814507.94864757.852858954.956181413.1337176330.99
this period
(1) Provision 19456697.12 7814507.94 864757.85 2858836.91 6181413.13 37176212.95
(2) Other
118.04118.04
increases
3. Decrease in
27856.84891857.61883240.571290121.03506162.193599238.24
this period
(1) Disposal
27856.84891857.61874867.601288201.87506162.193588946.11
or retirement
(2) Other
8372.971919.1610292.13
decrease
4. Closing
107082410.5866209150.4115574260.7034010340.7658629255.43281505417.88
balance
III.Impairment
provision
1. Opening
5081.205081.20
balance
2. Increase in
2650000.002650000.00
this period
(1) Provision 2650000.00 2650000.00
3. Decrease in
this period
4. Closing
2655081.202655081.20
balance
IV. Book value
214Annual Report 2025 of China Fangda Group Co. Ltd.
1. Closing
772958143.5870348975.855114086.6221620627.0470938280.81940980113.90
book value
2. Opening
768507644.0569594022.845727533.7718918748.9676800124.97939548074.59
book value
(4) Fixed assets without ownership certificate
In RMB
Item Book value Reason
Yuehai Office Building C 502 94206.21 Historical reasons
(5) Impairment testing of property plant and equipment
□ Applicable □ Inapplicable
The recoverable amount is determined as the net amount after deducting the disposal costs from the fair
value.□ Applicable □ Inapplicable
In RMB
Method for
Basis for
determining
Recoverable Impairment Key determining
Item Book value fair value
amount amount assumptions key
less costs
assumptions
of disposal
Estimated
Estimated
Mechanical recoverable Market price
2861500.00 211500.00 2650000.00 disposal
equipment amount upon inquiry
proceeds
disposal
Total 2861500.00 211500.00 2650000.00
The recoverable amount is determined based on the present value of estimated future cash flows.□ Applicable □ Inapplicable
(6) Disposal of fixed assets
In RMB
Item Closing balance Opening balance
Disposal of fixed assets 1346269.80
Total 1346269.80
16. Construction in process
In RMB
Item Closing balance Opening balance
Construction in process 1214530.34 7265104.44
Total 1214530.34 7265104.44
(1) Construction in progress
In RMB
215Annual Report 2025 of China Fangda Group Co. Ltd.
Closing balance Opening balance
Item Remaining Impairment Remaining Impairment
Book value Book value
book value provision book value provision
Fangda (Ganzhou) Low-
Carbon Intelligent
Manufacturing Base –
133381.74133381.747018372.927018372.92
Phase I Exhibition
Hall and Installed
Equipment
Songshan lake
production base
583502.56583502.56246731.52246731.52
exhibition hall
renovation
Software and other
information technology 497646.04 497646.04
projects
Total 1214530.34 1214530.34 7265104.44 7265104.44
17. Use right assets
(1) Right-to-use assets
In RMB
Transportation
Item Houses & buildings Total
facilities
I. Book value
1. Opening balance 17835398.71 9285061.69 27120460.40
2. Increase in this
3811719.283811719.28
period
3. Decrease in this
2356058.012139970.724496028.73
period
4. Closing balance 19291059.98 7145090.97 26436150.95
II. Accumulative
depreciation
1. Opening balance 9589374.43 1847964.93 11437339.36
2. Increase in this
3153312.191236213.694389525.88
period
(1) Provision 3153312.19 1236213.69 4389525.88
3. Decrease in this
1743811.771116908.932860720.70
period
(1) Disposal 1743811.77 1116908.93 2860720.70
4. Closing balance 10998874.85 1967269.69 12966144.54
III. Impairment
provision
1. Opening balance
2. Increase in this
period
3. Decrease in this
period
216Annual Report 2025 of China Fangda Group Co. Ltd.
4. Closing balance
IV. Book value
1. Closing book
8292185.135177821.2813470006.41
value
2. Opening book
8246024.287437096.7615683121.04
value
(2) Impairment testing of right-of-use assets
□ Applicable □ Inapplicable
18. Intangible assets
(1) Intangible assets
In RMB
Item Land using right Patent Software Others Total
I. Book value
1. Opening balance 142009721.92 9059872.37 24267321.82 720000.00 176056916.11
2. Increase in this
426186.524242674.774668861.29
period
(1) Purchase 426186.52 4242674.77 4668861.29
3. Decrease in this
48330450.002012338.04243323.6650586111.70
period
(1) Disposal 48330450.00 2012338.04 243323.66 50586111.70
4. Closing balance 93679271.92 7473720.85 28266672.93 720000.00 130139665.70
II. Accumulative
amortization
1. Opening balance 24105634.24 8946369.49 15108511.74 48160515.47
2. Increase in this
2546293.68417108.042011794.37180000.005155196.09
period
(1) Provision 2546293.68 417108.04 2011794.37 180000.00 5155196.09
3. Decrease in this
3179444.152012113.04243323.665434880.85
period
(1) Disposal 3179444.15 2012113.04 243323.66 5434880.85
4. Closing balance 23472483.77 7351364.49 16876982.45 180000.00 47880830.71
III. Impairment
provision
1. Opening balance 3844005.85 3844005.85
2. Increase in this
period
3. Decrease in this
3844005.853844005.85
period
(1) Disposal 3844005.85 3844005.85
4. Closing balance
IV. Book value
217Annual Report 2025 of China Fangda Group Co. Ltd.
1. Closing book value 70206788.15 122356.36 11389690.48 540000.00 82258834.99
2. Opening book value 114060081.83 113502.88 9158810.08 720000.00 124052394.79
19. Long-term amortizable expenses
In RMB
Increase in this Amortized amount
Item Opening balance Other decrease Closing balance
period in this period
Expenditures on
modifications to
4041025.706933834.004393633.5418731.196562494.97
property plant and
equipment etc.Total 4041025.70 6933834.00 4393633.54 18731.19 6562494.97
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
251624427.5940453268.46227880793.9335025619.90
provision
Unrealized profit of
122552188.0028685612.51108593435.6626573799.68
internal transactions
Deductible loss 486268366.84 91973864.74 286565331.75 67193424.59
Credit impairment
626126565.76100493765.98382932070.7260483324.52
provision
Anticipated
7214622.241082193.354191535.03628730.25
liabilities
Unrealized investment
281712399.1555842834.35281712399.1555842834.35
income
Deferred earning 21913458.18 3518841.84 5946064.06 1041584.25
Change in fair value 10239089.49 1535863.42 8623065.19 1303042.83
Lease liabilities 13623096.04 2469342.96 15352065.96 2788081.55
Accrued and unpaid
15043321.063760830.2716012293.284003073.33
land tax
Reserved expense 36589539.42 5488430.92 36589539.42 5488430.92
Tax and accounting
differences for 7121041.73 2136312.52 8617276.57 2585182.97
overseas subsidiaries
Total 1880028115.50 337441161.32 1383015870.72 262957129.14
(2) Non-deducted deferred income tax liabilities
In RMB
Closing balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
218Annual Report 2025 of China Fangda Group Co. Ltd.
Change in fair value 4014727945.14 1000546168.91 4296974960.10 1071313064.75
Acquire premium to
1535605.48383901.371535605.48383901.37
form inventory
Use right assets 13470006.41 2564776.55 15683121.04 2901986.66
Estimated gross
margin when Fangda
Town records income
8000812.742000203.1924131708.416032927.10
but does not reach
the taxable income
level
Rental income 24631068.63 6157767.16 26717859.03 6679464.47
Total 4062365438.40 1011652817.18 4365043254.06 1087311344.35
(3) Net deferred income tax assets or liabilities listed
In RMB
Deferred income tax
Deferred income tax Offset balance of Offset balance of
assets and
assets and deferred income tax deferred income tax
Item liabilities at the
liabilities at the assets or liabilities assets or liabilities
beginning of the
end of the period after offsetting after offsetting
period
Deferred income tax
70572127.96266869033.3656970202.43205986926.71
assets
Deferred income tax
70572127.96941080689.2256970202.431030341141.92
liabilities
(4) Details of unrecognized deferred income tax assets
In RMB
Item Closing balance Opening balance
Deductible temporary difference 2555701.75 434437.85
Deductible loss 20249356.74 383366.61
Total 22805058.49 817804.46
(5) Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Closing amount Opening amount Remarks
20252679.34
202636426.09449.91
2027566465.76125759.62
2028196742.94122872.18
202919136478.27131605.56
2030 and later 313243.68
Total 20249356.74 383366.61
21. Other non-current assets
In RMB
Item Closing balance Opening balance
219Annual Report 2025 of China Fangda Group Co. Ltd.
Remaining book Impairment Remaining book Impairment
Book value Book value
value provision value provision
Contract assets 125214302.34 9438790.60 115775511.74 160412051.45 11257487.71 149154563.74
Prepaid house and
29968445.5029968445.5063504106.1563504106.15
equipment amount
Total 155182747.84 9438790.60 145743957.24 223916157.60 11257487.71 212658669.89
22. Assets with restricted ownership or use rights
In RMB
Closing balance Beginning of the period
Item Type of Type ofRemaining Restricted Remaining Restricted
Book value restrictio Book value restrictio
book value situation book value situation
n n
Various
For pledge deposits For pledge
Monetary 31032655 31032655 or judicially 46005212 46005212 or Various
capital 4.83 4.83 restricted frozen 5.50 5.50 restricted deposits
use funds use
etc.Bills Bills
For For
endorsed endorsed
endorsemen endorsemen
Notes 40781530 39012200 or 34500685 34490806 or
t or t or
receivable .88 .04 discounted .65 .03 discounted
discountin discountin
but not but not
g g
yet due yet due
Fixed 20566375 19295491 Used as Loan by 36276074 35597842 Used as Loan by
assets 9.54 0.15 collateral pledge 1.16 5.04 collateral pledge
Intangible 24179649 22728870 Used as Loan by 24179649 23212463 Used as Loan by
assets .75 .63 collateral pledge .75 .67 collateral pledge
Account 17452160 17261724 Loan by 34364041 33851277 Loan by
For pledge For pledge
receivable .26 .13 pledge .60 .04 pledge
Investment
3349490 3349490 Used as Loan by 1822483 1822483 Used as Loan by
real
698.00 698.00 collateral pledge 172.10 172.10 collateral pledge
estate
100% stake 100% stake
Long-term in Fangda in Fangda
Equity Property Property
Investment For pledge Developmen For pledge Developmen
s (Parent t held by t held by
Company) the the
Company Company
3947894393177427383402730068
Total
353.26957.78415.76269.38
23. Short-term borrowings
(1) Classification of short-term borrowings
In RMB
Item Closing balance Opening balance
Guarantee loan 674220527.58 720642744.49
220Annual Report 2025 of China Fangda Group Co. Ltd.
Guarantee and pledge loan 528625969.45 943053677.99
Total 1202846497.03 1663696422.48
Notes to classification of short-term borrowings
* As of the reporting date among guaranteed borrowings:
RMB62045333.34 and RMB605125916.77 were guaranteed by the Company for its subsidiaries Fangda Zhiyuan
Technology Co. Ltd. and Shenzhen Fangda Construction Technology Group Co. Ltd. respectively;
RMB6019002.78 was guaranteed by the Company for its subsidiary Shenzhen Fangda Yunchu Technology Co.Ltd.;
RMB1030274.69 was guaranteed by the Company for its subsidiary Fangda New Materials (Jiangxi) Co.Ltd.RMB1030274.69 was guaranteed by the Company for its subsidiary Fangda New Materials (Jiangxi) Co.Ltd. Among guaranteed borrowings internal factoring loans amounted to RMB194900000.* As of the reporting date among guaranteed and pledged borrowings:
RMB49047775.00 was guaranteed by the Company for its subsidiary Shenzhen Fangda Construction Technology
Group Co. Ltd. with the subsidiary providing intellectual property pledges on its patents for "Automatic
Sensing Curtain Wall Energy-Saving Window System" and "Intelligent Shading System"; RMB40027777.78 was
guaranteed by the Company for Shenzhen Fangda Construction Technology Group Co. Ltd. with the subsidiary
pledging its patent for "Modular Frame Curtain Wall System";
RMB50038194.45 was guaranteed by the Company for Shenzhen Fangda Construction Technology Group Co. Ltd.with the subsidiary pledging its patents for "Connection Structure for Ventilated Box-Type Curtain Wall"
and "Energy-Saving Curtain Wall Structure Using Copper-Aluminum Composite Panels";
RMB342580000.00 was guaranteed and pledged by the Company for its subsidiary Shenzhen Fangda Construction
Technology Group Co. Ltd. Among guaranteed and pledged borrowings internal factoring loans amounted to
RMB40580000.00.
24. Derivative financial liabilities
In RMB
Item Closing balance Opening balance
Futures contracts 0.00 1520625.00
Total 0.00 1520625.00
25. Notes payable
In RMB
Type Closing balance Opening balance
221Annual Report 2025 of China Fangda Group Co. Ltd.
Commercial acceptance 598808.42 8958406.41
Bank acceptance 428511829.11 672229721.56
Total 429110637.53 681188127.97
The total amount of payable bills that have matured but not been paid at the end of the period is RMB0.00.
26. Account payable
(1) Account payable
In RMB
Item Closing balance Opening balance
Account repayable and engineering
1456091905.061528510873.88
repayable
Payable installation and
540158310.89558215149.23
implementation fees
Construction payable 17642579.41 27062009.47
Others 26798424.80 32806857.99
Total 2040691220.16 2146594890.57
（2） Significant accounts payable with aging over one year or overdue
As of the reporting date there were no significant accounts payable with aging over one year or overdue.
(3) Whether there are any overdue payments to small and medium-sized enterprises (SMEs) that remain
unpaid
Whether the entity qualifies as a large enterprise
□ Yes □ No
Whether there are any overdue payments to SMEs that remain unpaid
□ Yes □ No
27. Other payables
In RMB
Item Closing balance Opening balance
Other payables 125372728.24 120918002.02
Total 125372728.24 120918002.02
(1) Other payables
1) Other payables presented by nature
In RMB
Item Closing balance Opening balance
Performance and quality deposit 39447699.46 42955873.85
Deposit 23547532.18 22843813.76
Reserved expense 3689432.93 5336051.21
222Annual Report 2025 of China Fangda Group Co. Ltd.
Others 58688063.67 49782263.20
Total 125372728.24 120918002.02
(2) Significant other accounts payable older than 1 year or past due
In RMB
Item Closing balance Reason
Shenzhen Yikang Real Estate Co. Payment paid as agreed in the
26159711.72
Ltd. contract
Total 26159711.72
28. Prepayment received
(1) Prepayment received
In RMB
Item Closing balance Opening balance
Rent received in advance 3517539.83 1513398.39
Total 3517539.83 1513398.39
29. Contract liabilities
In RMB
Item Closing balance Opening balance
Project funds collected in
347809670.83259315011.77
advance
Material loan 979539.70 8934838.06
Others 1366667.08 344191.43
Total 350155877.61 268594041.26
The amount and reason for the significant change in the book value during the reporting period
In RMB
Item Change Reason
Due to the increase in advance
Project funds collected in
88494659.06 receipts from construction
advance
contracts
Total 88494659.06 ——
30. Employees' wage payable
(1) Employees' wage payable
In RMB
Item Opening balance Increase Decrease Closing balance
1. Short-term remuneration 69946623.12 430502785.23 438781419.33 61667989.02
2. Retirement pension
program-defined 762569.73 31667690.80 31717595.58 712664.95
contribution plan
3. Dismiss compensation 5534455.12 12853198.93 12955461.93 5432192.12
223Annual Report 2025 of China Fangda Group Co. Ltd.
Total 76243647.97 475023674.96 483454476.84 67812846.09
(2) Short-term remuneration
In RMB
Item Opening balance Increase Decrease Closing balance
1. Wage bonus allowance
68590093.96398581088.05406848495.1860322686.83
and subsidies
2. Employee welfare 227864.06 9870012.56 10095803.26 2073.36
3. Social insurance 187229.50 10254180.58 10306309.16 135100.92
Including: medical
170309.998429936.218478678.37121567.83
insurance
Labor injury
10483.121101060.841103883.377660.59
insurance
Breeding
6436.39723183.53723747.425872.50
insurance
4. Housing fund 73372.23 10728412.28 10714303.31 87481.20
5. Labor union budget and
329829.09934796.35816508.42448117.02
staff education fund
6. Short-term paid leave 538234.28 134295.41 672529.69
Total 69946623.12 430502785.23 438781419.33 61667989.02
(3) Defined contribution plan
In RMB
Item Opening balance Increase Decrease Closing balance
1. Basic pension 750906.10 30441686.74 30486994.92 705597.92
2. Unemployment
11663.631226004.061230600.667067.03
insurance
Total 762569.73 31667690.80 31717595.58 712664.95
31. Taxes payable
In RMB
Item Closing balance Opening balance
VAT 6404428.28 5014443.15
Enterprise income tax 12238129.74 22749953.33
Personal income tax 1465819.45 1436564.89
City maintenance and construction
701639.13442894.30
tax
Land using tax 427736.41 342015.86
Property tax 1608807.88 1433309.14
Education surtax 306278.00 194329.75
Local education surtax 204185.33 129553.00
Land VAT 15043321.06 16012293.28
Consumption service tax 1469363.12 237874.41
Others 569589.35 853886.08
224Annual Report 2025 of China Fangda Group Co. Ltd.
Total 40439297.75 48847117.19
32. Non-current liabilities due within 1 year
In RMB
Item Closing balance Opening balance
Long-term loans due within 1 year 368687783.34 123355127.55
Lease liabilities due within one
4642179.295114390.19
year
Provisions expected to mature
5759232.032905143.31
within one year
Total 379089194.66 131374661.05
33. Other current liabilities
In RMB
Item Closing balance Opening balance
Notes receivable endorsed but not
40781530.8821426278.75
derecognized
Substituted money on VAT 20137407.63 29409280.92
Total 60918938.51 50835559.67
34. Long-term borrowings
(1) Classification of long-term borrowings
In RMB
Item Closing balance Opening balance
Guarantee mortgage and pledge
1658687783.341260355127.55
loan
Less: Long-term loans due within
368687783.34123355127.55
1 year
Total 1290000000.00 1137000000.00
Notes to classification of long-term borrowings:
(1) Among the aforementioned guaranteed mortgaged and pledged borrowings:
Borrowings of RMB1081171500.00 were secured by pledges of 100% equity interests in the Company's
subsidiary Fangda Property Holdings Company (held directly and indirectly by China Fangda Group Co. Ltd.)
and receivable rental income from the Company's self-held Fangda City leased properties;
Borrowings of RMB280247333.34 were guaranteed by China Fangda Group Co. Ltd. for its subsidiary Fangda
Intelligent Manufacturing Company with additional collateral provided by the subsidiary in the form of
225Annual Report 2025 of China Fangda Group Co. Ltd.
its property plant and equipment and industrial land use rights;
Borrowings of RMB297268950.00 were guaranteed by China Fangda Group Co. Ltd. for its subsidiary Fangda
Construction Technology Company.
(2) The interest rate range for long-term borrowings is 2.1% to 3.65%.
35. Lease liabilities
In RMB
Item Closing balance Opening balance
Lease payments 15229706.15 18828149.71
Less: unrecognized financing
1607979.993061152.04
expenses
Less: lease liabilities due
4642179.295114390.19
within one year
Total 8979546.87 10652607.48
36. Anticipated liabilities
In RMB
Item Closing balance Opening balance Reason
Loss contract to be
280345.71369328.45
executed
Maintenance fee 1175044.50 917063.27 Product quality warranty
Total 1455390.21 1286391.72
37. Deferred earning
In RMB
Item Opening balance Increase Decrease Closing balance Reason
Assets-related
Government
10669612.13 17776306.00 2141640.44 26304277.69 government
subsidy
subsidy
Total 10669612.13 17776306.00 2141640.44 26304277.69 --
38. Capital share
In RMB
Change (+-)
Opening balance TransferreIssued new Bonus Closing balance
d from Others Subtotal
shares shares
reserves
Total of
capital 1073874227.00 1073874227.00
shares
226Annual Report 2025 of China Fangda Group Co. Ltd.
39. Capital reserve
In RMB
Item Opening balance Increase Decrease Closing balance
Capital premium
(share capital 2903850.98 2903850.98
premium)
Other capital
1454097.351454097.35
reserves
Total 4357948.33 4357948.33
40. Other miscellaneous income
In RMB
Amount occurred in the current period
Less:
Less:
amount
amount
written After-
written
into tax
into
other amount
other Less: After-tax
Opening Amount gains attribu Closing
Item gains and Income amount
balance before and ted to balance
transferr tax attributed to
income tax transfer minorit
ed into expenses the parent
red into y
gain/loss
gain/los shareho
in
s in lders
previous
previous
terms
terms
I. Other
comprehensi
ve income
that cannot
be -3779277.52 -3779277.52
reclassifie
d into
profit or
loss
Fair value
change of
investment
-3779277.52-3779277.52
in other
equity
tools
2. Other
misc.incomes
that will 3038109. 396775.7
162184292.042641819.98-485.72164826112.02
be re- 97 1
classified
into gain
and loss
Cash flow 2980575. 447086.2
-1269329.142533488.751264159.61
hedge 00 5
227Annual Report 2025 of China Fangda Group Co. Ltd.
reserve
Translation
difference
of foreign -533034.30 295507.38 295993.10 -485.72 -237041.20
exchange
statement
Investment
real estate - -
163986655.48-187661.87163798993.61
measured at 237972.41 50310.54
fair value
Other
3038109.396775.7
miscellaneo 158405014.52 2641819.98 -485.72 161046834.50
971
us income
41. Surplus reserves
In RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
83974716.221393611.7885368328.00
reserves
Total 83974716.22 1393611.78 85368328.00
Explanation of retained earnings including changes during the period and reasons for such changes:
The increase in retained earnings during the period resulted from the appropriation of statutory surplus
reserves.
42. Retained profit
In RMB
Item Current period Last period
Adjustment on retained profit of
4805192000.284772359940.45
previous period
Retained profit adjusted at beginning
4805192000.284772359940.45
of year
Plus: Net profit attributable to
-515466884.24144813705.53
owners of the parent
Less: Statutory surplus reserves 1393611.78 5728420.02
Common share dividend payable 53693711.35 85909938.16
Others 20343287.52
Closing retained profit 4234637792.91 4805192000.28
43. Operational revenue and costs
In RMB
Amount occurred in the current period Occurred in previous period
Item
Income Cost Income Cost
Main business 3327948583.52 2881219133.19 4373119434.75 3545394888.31
Other businesses 49354482.92 40317819.34 51104762.96 42747408.17
228Annual Report 2025 of China Fangda Group Co. Ltd.
Total 3377303066.44 2921536952.53 4424224197.71 3588142296.48
The lowest of the Company's audited profit before tax net profit and net profit after deducting non-
recurring gains and losses for the reporting period was negative.□ Yes □ No
In RMB
Item Current year Details of deductions Prior year Details of deductions
Amount of operating
3377303066.444424224197.71
revenue
Deduction items Deduction items
primarily include scrap primarily include scrap
Total amount of
sales and property sales sales and property sales
operating revenue 49354482.92 51104762.96
revenue from non- revenue from non-
deductions
commercial real estate commercial real estate
operations etc. operations etc.Proportion of total
operating revenue
1.46%1.16%
deductions to
operating revenue
I. Revenue unrelated
to principal business
activities
1. Other operating
revenue generated
outside normal
business operations.Examples include
rental income from
property plant and
equipment and
intangible assets
rental income from
packaging materials Primarily scrap sales Primarily scrap sales
sales of raw and property sales and property sales
materials revenue 49354482.92 revenue from non- 51104762.96 revenue from non-
from non-monetary commercial real estate commercial real estate
asset exchanges using operations etc. operations etc.materials revenue
from entrusted
management services
and any revenue
recorded as principal
business revenue but
arising outside the
listed company's
normal business
operations.Subtotal of revenue
unrelated to
49354482.9251104762.96
principal business
activities
II. Revenue lacking
commercial substance
Subtotal of revenue 0.00 Inapplicable 0.00 Inapplicable
229Annual Report 2025 of China Fangda Group Co. Ltd.
lacking commercial
substance
Amount after deducting Amount after deducting
scrap sales and property scrap sales and property
Operating revenue sales revenue from non- sales revenue from non-
3327948583.524373119434.75
after deductions commercial real estate commercial real estate
operations among operations among
others. others.Breakdown of operating revenues and operating costs:
In RMB
Segment 2 - Segment 3 -
Contra Segment 1- Segment 4 - new Segment 5 -rail transit real estate Total
ct curtain wall energy other segmentsdivision segment
classi
ficati Operat Operat Operat Operat Operat OperatTurnov Turnov Turnov Turnov Turnov Turnov
on ing ing ing ing ing inger er er er er er
cost cost cost cost cost cost
Busine 2569 2415 59677 42293 17603 75419 18558 15990 3377 2921
79688267.
ss 94468 20860 0482. 1696. 8964. 551.9 764.4 168.5 30306 53695
831.2266
type 6.00 4.86 60 88 94 1 0 0 6.44 2.53
Includ
ing:
Curtai
n wall
2569241525692415
system
94468208609446820860
and
6.004.866.004.86
materi
als
Subway
screen
59677422935967742293
door
0482.1696.0482.1696.
and
60886088
servic
e
Real
estate
rental
and
17603754191760375419
sales
8964.551.98964.551.9
and
941941
proper
ty
servic
es
PV
power
1855818558
genera 7968 7968
764.4764.4
tion 831.22 831.22
00
produc
ts
1599015990
8267.8267.
Others 168.5 168.5
6666
00
2569241559677422931760375419185581599033772921
By 7968 8267.
94468208600482.1696.8964.551.9764.4168.53030653695
operat 831.22 66
6.004.866088941006.442.53
230Annual Report 2025 of China Fangda Group Co. Ltd.
ing
region
Includ
ing:
2425230335946281781760375419185581599029952668
In 7968 8267.
05357596503056.0377.8964.551.9764.4168.51045277353
China 831.22 66
2.403.060915941006.331.00
144891116123730141153821925276
Out of
1113.2101.7426.1319.8540.3421.
China
608051731153
（1）The main business income is listed as follows according to the breakdown information:
In 2025 the information of operating revenue broken down by revenue recognition time is as follows:
Item 2025 (RMB) 2024 (RMB)
Revenue recognized at a certain point
533955293.94545412251.88
in time
Revenue recognized over a period of
2843347772.503878811945.83
time
Total 3377303066.44 4424224197.71
(2) Performance obligation
For curtain wall materials real estate and other commodity sales transactions the Company completes
the performance obligations when the customer obtains the control of the relevant commodities; for
providing building curtain wall Metro screen door design production and installation and other service
transactions the Company confirms the completed performance obligations according to the performance
progress during the whole service period. The contract price of the Company is usually due within one year
and there is no significant financing component.
(3) Information related to the transaction price allocated to 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 6547837327.97 yuan of which
3151510895.04 yuan is expected to be recognized in 2026 and 1457408206.84 yuan is expected to be
recognized in 2027 1938918226.08 yuan is expected to be recognized in 2028 and beyond.The Company needs to comply with the disclosure requirements of the real estate industry in the
Guidelines for the Self-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 -
Industry Information Disclosure.Top-5 projects in terms of income received and recognized in the reporting period:
In RMB
No. Item Balance
1 Fangda Town 147921435.79
2 Nanchang Fangda Center 23541885.77
Revenue from the aforementioned projects includes income from property leasing property sales
property management services etc.
231Annual Report 2025 of China Fangda Group Co. Ltd.
44. Taxes and surcharges
In RMB
Amount occurred in the current
Item Occurred in previous period
period
City maintenance and construction
5507073.146526296.57
tax
Education surtax 4097235.46 4894545.68
Property tax 21128884.70 20235700.43
Land using tax 2148696.57 1967709.57
Stamp tax 2646316.83 5125991.22
Land VAT 162267.96 4535890.32
Others 320867.76 78257.55
Total 36011342.42 43364391.34
45. Management expense
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Labor costs 129569222.27 137729076.22
Depreciation and amortization 15295989.89 17246520.96
Agencies 9092377.02 6918578.15
Entertainment expense 5941257.55 7993709.32
Office expense 4113166.63 5648928.52
Travel expense 2852779.56 4337710.40
Rental 2795359.88 2254738.54
Water and electricity 1764753.20 1204391.67
Property management fee 1221908.37 1102485.41
Lawsuit 1194968.95 296491.06
Others 5505940.23 6934804.95
Total 179347723.55 191667435.20
46. Sales expense
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Labor costs 35157320.22 30449690.40
Entertainment expense 6378943.30 8485462.87
Travel expense 4614410.83 2955271.55
Advertisement and promotion fee 2317559.63 2144452.78
Rental 1005536.52 629569.36
Depreciation and amortization 1886120.08 2269054.34
Material consumption 1011161.01 1352405.66
Sales agency fee 970571.54 1595221.91
Office costs 731950.25 895531.77
Others 3330447.79 4363492.49
Total 57404021.17 55140153.13
232Annual Report 2025 of China Fangda Group Co. Ltd.
47. R&D cost
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Labor costs 87229245.50 100670006.36
Material costs 29787750.26 50544384.90
Testing fees 9776489.95 11574101.52
Depreciation and amortization 3651149.36 4730697.11
Others 2369777.05 3512181.84
Total 132814412.12 171031371.73
48. Financial expense
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Interest expense 73451706.21 60377020.35
Including: interest expense of
587402.861270121.44
lease liabilities
Less: discount government
1639000.002616200.00
subsidies
Less: Interest income 10685216.12 19230549.61
Net interest expenditure 61127490.09 38530270.74
Exchange net loss 3446327.54 -3073376.55
Discount expense 10151618.08 23766144.18
Commission charges and others 3808049.61 6074894.67
Total 78533485.32 65297933.04
49. Other gains
In RMB
Amount occurred in the current
Source Occurred in previous period
period
Government subsidy 9734296.68 14027285.85
Individual income tax withholding
272580.44282947.24
handling fee
Additional deduction of input tax 562972.73 5373030.49
Total 10569849.85 19683263.58
50. Income from fair value fluctuation
In RMB
Source of income from fluctuation Amount occurred in the current
Occurred in previous period
of fair value period
Transactional financial assets 410.06
Investment real estate measured
-280731968.67-18397296.67
at fair value
Other non-current financial
-3608.543098.25
assets
Total -280735167.15 -18394198.42
233Annual Report 2025 of China Fangda Group Co. Ltd.
51. Investment income
In RMB
Amount occurred in the
Item Occurred in previous period
current period
Gains from long-term equity investment
-23702329.34-70043.43
measured by equity
Investment income from disposal of
1494724.44-1666256.28
trading financial assets
Debt restructuring gains -118701.78
Financial assets derecognized as a result
-3565876.31-2538217.26
of amortized cost
Income from derecognition of other
-154143.85
financial assets measured at fair value
Total -25773481.21 -4547362.60
52. Credit impairment loss
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Bad debt loss of notes receivable -13358396.35 -237783.09
Bad debt loss of account
-235005089.69-109795711.27
receivable
Bad debt loss of other
-4181353.42-653357.89
receivables
Total -252544839.46 -110686852.25
53. Assets impairment loss
In RMB
Amount occurred in the
Item Occurred in previous period
current period
Inventory write-down losses and
impairment losses on contract -23306214.74
fulfillment costs
Impairment losses on property plant
-2650000.00-2500000.00
and equipment
Impairment losses on intangible assets -3844005.85
Impairment loss on contract assets
(including the portion reclassified to -4669897.78 -28916573.64
other non-current assets)
Total -30626112.52 -35260579.49
54. Assets disposal gains
In RMB
Source Amount occurred in the Occurred in previous period
234Annual Report 2025 of China Fangda Group Co. Ltd.
current period
Disposition not classified as possession
of fixed assets to be sold construction -2097446.78 -571500.30
in progress and intangible assets
Including: Fixed assets -690446.78 -571500.30
Intangible assets -1407000.00
Disposal of other non-current assets -1129425.81
Disposal of use right assets 194594.82 71307.49
Total -3032277.77 -500192.81
55. Non-business income
In RMB
Amount accounted into
Amount occurred in the Occurred in previous
Item the current accidental
current period period
gain/loss
Penalty income 147421.94 169756.38 147421.94
Compensation received 84950.00 110450.67 84950.00
Payable account not able
1105933.49
to be paid
Others 342226.94 291705.96 342226.94
Gains on disposal of
8061.5434565.798061.54
non-current assets
Total 582660.42 1712412.29 582660.42
56. Non-business expenses
In RMB
Amount accounted into the
Amount occurred in the Occurred in previous
Item current accidental
current period period
gain/loss
Donation 530000.00 50000.00 530000.00
Loss from retirement of
damaged non-current 890363.69 636096.88 890363.69
assets
Penalty and overdue fine 906136.85 724692.03 906136.85
Others 16034265.87 815503.59 16034265.87
Total 18360766.41 2226292.50 18360766.41
Other notes: "Others" includes a loss of RMB16000000.00 arising from the termination of the
Bangshen project; see Note 10 "Inventories" in Section VII "Notes to Consolidated Financial
Statements" of Part VIII for details.
57. Income tax expenses
(1) Details about income tax expense
In RMB
235Annual Report 2025 of China Fangda Group Co. Ltd.
Amount occurred in the current
Item Occurred in previous period
period
Income tax expenses in this
37186918.1231496973.61
period
Deferred income tax expenses -150018693.23 -18304449.34
Total -112831775.11 13192524.27
(2) Adjustment process of accounting profit and income tax expense
In RMB
Amount occurred in the current
Item
period
Total profit -628265004.92
Income tax expenses calculated based on the legal (or applicable)
-157066251.23
tax rates
Impacts of different tax rates applicable for some subsidiaries 32144912.45
Impacts of income tax before adjustment 1224027.11
Impact of non-taxable income -44361.26
Impacts of non-deductible cost expense and loss 5703572.23
Deductible temporary difference and deductible loss of
4953429.05
unrecognized deferred income tax assets
Additional deduction of R&D expense -18869349.63
Profit and loss of associates and joint ventures calculated using
5925582.34
the equity method
Effect of tax rate change on deferred income tax -787559.90
Impact of deductible losses of deferred income tax assets
13984223.73
recognized in the previous period exceeding the recoverable period
Income tax expenses -112831775.11
58. Other miscellaneous income
See Note 40 "Other Comprehensive Income" in Section VII "Notes to Consolidated Financial
Statements" of Part VIII for details.
59. Notes to the cash flow statement
(1) Cash inflow related to operation
Other cash received from business operations
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Interest income 10824216.12 13149043.03
Subsidy income 21354321.72 14815630.09
Retrieving of bidding deposits 41527537.45 32822259.64
Other operating accounts 31388726.08 26028503.64
Net amount of receipts from bills
48883570.6728208714.36
and other deposits
Total 153978372.04 115024150.76
236Annual Report 2025 of China Fangda Group Co. Ltd.
Other cash paid for business operations
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Cash expenses 130505709.21 127740024.89
Bidding deposit paid 21368944.98 35416621.23
Other trades 4811588.71 17528864.15
Total 156686242.90 180685510.27
(2) Cash related to investment activities
Other cash paid for investment
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Foreign exchange investment
1787676.30
losses
Total 1787676.30
Significant cash payments related to investing activities
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Acquisition of non-controlling
interests in Fangda Zhiyuan 26616725.71
Company
Total 26616725.71
(3) Cash related to financing
Other cash received from financing activities
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Recovery of loan deposits 100842000.00 133000000.00
Recovery of time deposits 330600944.44
Total 100842000.00 463600944.44
Other cash paid related to financing activities
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Financing fee 2825971.65 3078784.45
Principal and interest of lease
7588118.5216984180.17
liabilities
Payment for repurchase of equity
98116151.32
interest in Fangda Zhiyuan
Payments to non-controlling
shareholders due to subsidiary 2549339.32 1221195.25
liquidation
Total 12963429.49 119400311.19
237Annual Report 2025 of China Fangda Group Co. Ltd.
Changes in liabilities arising from financing activities
□ Applicable □ Inapplicable
In RMB
Increase Decrease
Item Opening balance Closing balance
Change in cash Non-cash change Change in cash Non-cash change
Short-term 1881823195.7 1202846497.0
1663696422.481416692628.2417355048.9613074406.90
loans 5 3
Dividend
53693711.3553693711.35
payable
Non-current
liabilities 128469517.74 406279362.16 161418917.27 373329962.63
due in 1 year
Long-term 1290000000.0
1137000000.001100000000.00600000000.00347000000.00
loans 0
Lease
10652607.485185685.196858745.808979546.87
liabilities
2696935824.32875156006.5
Total 2939818547.70 2516692628.24 482513807.66 366933152.70
73
(4) Explanation of cash flows presented on a net basis
Relevant factual Basis for adopting net
Item Financial impact
information presentation
Net margin paid on bills Corresponding deposits
of exchange etc. for bills of exchange
are presented on a net Quick turnaround and
Net deposits received None
basis according to short maturity
such as bills of
changes in their
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
None
60. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB
Amount of the Current Amount of the
Supplementary information
Term Previous Term
1. Net profit adjusted to cash flow related to business operations
Net profit -515433229.81 146168290.32
Plus: Asset impairment provision 283170951.98 145947431.74
Fixed asset depreciation gas and petrol depreciation
37176212.9532873765.23
production goods depreciation
Depreciation of right to use assets 4389525.88 15038434.25
238Annual Report 2025 of China Fangda Group Co. Ltd.
Amortization of intangible assets 5155196.09 7362948.39
Amortization of long-term amortizable expenses 4393633.54 3854633.92
Loss from disposal of fixed assets intangible assets and other
3032277.77500192.81
long-term assets ("-" for gains)
Loss from fixed asset discard ("-" for gains) 882302.15 601531.09
Loss from fair value fluctuation ("-" for gains) 280735167.15 18394198.42
Financial expenses ("-" for gains) 77563351.94 62507793.94
Investment losses ("-" for gains) 25773481.21 1855001.49
Decrease of deferred income tax asset ("-" for increase) -60882106.65 -34722077.39
Increase of deferred income tax asset ("-" for increase) -89260452.70 -6409546.15
Decrease of inventory ("-" for increase) -2698224.56 42960388.63
Decrease of operational receivable items ("-" for increase) 387051651.84 -288233573.56
Increase of operational receivable items ("-" for decrease) -302520409.58 93985965.94
Others 48883570.67 28208714.36
Cash flow generated by business operations net 187412899.87 270894093.43
2. Major investment and financing activities with no cash involved
Debt transferred to assets
Convertible corporate bonds due within one year
Addition of right-of-use assets 3811719.28 13743381.24
3. Net change in cash and cash equivalents:
Balance of cash at period end 1090965547.89 1031725216.34
Less: Initial balance of cash 1031725216.34 779661118.42
Add: Ending balance of cash equivalents
Less: Ending balance of cash equivalents
Net increase in cash and cash equivalents 59240331.55 252064097.92
(2) Composition of cash and cash equivalents
In RMB
Item Closing balance Opening balance
I. Cash 1090965547.89 1031725216.34
Including: Cash in stock 697.90 148.01
Bank savings can be used at
1078821930.021024641201.90
any time
Other monetary capital can be
12142919.977083866.43
used at any time
II. Balance of cash and cash
1090965547.891031725216.34
equivalents at end of term
(3) Monetary funds other than cash and cash equivalents
In RMB
Reasons for not being
Amount of the Current Amount of the Previous
Item cash and cash
Term Term
equivalents
239Annual Report 2025 of China Fangda Group Co. Ltd.
Various deposits
judicially frozen funds 310326554.83 460052125.50 Use restricted
etc.Total 310326554.83 460052125.50
(4) Supplier Financing Arrangements
* Terms and Conditions of Supplier Financing Arrangements
Supplier financing arrangement 1: The Company utilizes the "eXintong" supply chain financial service
platform jointly provided by Beijing Yuehan Technology Co. Ltd. and Shenzhen Branch of China
Construction Bank Corporation (hereinafter referred to as "CCB") to conduct reverse factoring
transactions offering services to suppliers holding electronic receivable instruments on the "eXintong"
platform that are payable by the Company upon maturity. Suppliers transfer their accounts receivable
under the Company's electronic debt certificates to CCB and apply for "e-Xintong" business services from
CCB. After analysis and evaluation CCB provides "e-Xintong" business services to suppliers if conditions
are met. The Company's obligation to fulfill payment under the electronic debt certificates is
unconditional and irrevocable unaffected by any commercial disputes among parties involved in the
transfer of the electronic debt certificates. The Company will not claim offsets or defenses regarding
this payment obligation. The Company will transfer an amount equal to the amount under the electronic
debt certificates on the committed payment date according to the "e-Xintong" platform business rules.Supplier Financing Arrangement 2: The Company handles reverse factoring business through the "e-
Zhangtong" supply chain financial service platform provided by Agricultural Bank of China Limited
Shenzhen Overseas Chinese Town Branch (hereinafter referred to as "ABC") offering services to suppliers
holding electronic debt certificates on the "e-Zhangtong" platform with payments due from the Company.Suppliers transfer their accounts receivable under the Company's electronic debt certificates to ABC and
apply for "e-Zhangtong" business services from ABC. After analysis and evaluation ABC provides "e-
Zhangtong" business services to suppliers if conditions are met. The Company's obligation to fulfill
payment under the electronic debt certificates is unconditional and irrevocable unaffected by any
commercial disputes among parties involved in the transfer of the electronic debt certificates. The
Company will not claim offsets or defenses regarding this payment obligation. The Company will transfer
240Annual Report 2025 of China Fangda Group Co. Ltd.
an amount equal to the amount under the electronic debt certificates on the committed payment date
according to the "e-Zhangtong" platform business rules.Supplier Financing Arrangement 3: The Company has signed a "Payment Agency Cooperation Agreement"
with China Merchants Bank Co. Ltd. Shenzhen Branch authorizing the bank to deduct payments from the
payment account on the dates specified in the "Detailed Payment Agency List" provided by the Group. When
suppliers initiate financing applications China Merchants Bank Co. Ltd. Shenzhen Branch uses the
Company's credit line to handle domestic factoring for suppliers. After the factoring matures the
Company only needs to pay the factoring financing amount to China Merchants Bank Co. Ltd. Shenzhen
Branch without interest.Supplier Financing Arrangement 4: The Company handles reverse factoring (Easy Credit) business
through the supply chain financial service platform provided by Bank of China Shenzhen Futian Branch
(hereinafter referred to as "BOC") offering services to suppliers holding electronic debt certificates
with payments committed by the Company. Suppliers transfer their accounts receivable under the Company's
electronic debt certificates to BOC and apply for Easy Credit business services from BOC. After analysis
and evaluation BOC provides Easy Credit business services to suppliers if conditions are met. The
Company's obligation to fulfill payment under the electronic debt certificates is unconditional and
irrevocable unaffected by any commercial disputes among parties involved in the transfer of the
electronic debt certificates. The Company will not claim offsets or defenses regarding this payment
obligation. The Company will transfer an amount equal to the amount under the electronic debt
certificates on the committed payment date according to the supply chain financial service platform
business rules.Supplier financing arrangement 5: The Company has entered into relevant agreements with Bank of
Shanghai Co. Ltd. authorizing Bank of Shanghai to based on financing details provided by the Company
and via the "Shanghang e-Chain" platform allow suppliers to initiate financing applications and execute
factoring transactions against the Company's credit line with Bank of Shanghai. Upon maturity of the
factoring facility the Company is only required to repay the principal amount of the factoring financing
to Bank of Shanghai while the related interest is borne by the designated party as agreed.
241Annual Report 2025 of China Fangda Group Co. Ltd.
* Financial liabilities under supplier financing arrangements presented in the balance sheet and
the carrying amount as well as the amounts received by suppliers from financing providers
Item December 31 2025 December 31 2024
Account payable 535521368.29 465016938.13
Including: Amounts received by
449522342.67341199057.49
suppliers
* Payment due date range for financial liabilities under supplier financing arrangements
Item December 31 2025 December 31 2024
Financial liabilities under
90-300 days from invoice receipt 90-300 days from invoice receipt
supplier financing arrangements
Comparable accounts payable not
under supplier financing 0-180 days from invoice receipt 0-180 days from invoice receipt
arrangements
61. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Closing foreign currency
Item Exchange rate Closing RMB balance
balance
Monetary capital 239466025.46
Including: USD 23572087.83 7.0288 165683490.94
Euro 247321.86 8.2355 2036819.18
HK Dollar 33197100.74 0.9032 29984285.33
Singapore Dollar 2173283.21 5.4586 11863083.73
Vietnamese Dong 1498727578.00 0.0003 401075.99
Rupee 18585243.26 0.0783 1455224.55
Australian Dollar 5712726.73 4.6892 26788118.18
Dirham 105189.93 1.9071 200607.72
Philippine Peso 8602278.03 0.1195 1027972.22
Saudi Riyal 13569.10 1.8680 25347.62
Account receivable 42841960.18
Including: USD 2825905.87 7.0288 19862727.18
HK Dollar 13004052.62 0.9032 11745520.41
Singapore Dollar 1471623.38 5.4586 8033003.38
Australian Dollar 682570.42 4.6892 3200709.21
Contract assets 88704919.11
Including: Hong Kong
53498133.310.903248320583.97
Dollar
U.S. Dollar 4031412.60 7.0288 28335992.88
Rupee 11258301.46 0.0783 881525.00
242Annual Report 2025 of China Fangda Group Co. Ltd.
Australian Dollar 2320553.49 4.6892 10881539.43
Dirham 149587.24 1.9071 285277.83
Other receivables 2025531.07
Including: Hong Kong Dollar 832476.66 0.9032 751909.57
U.S. Dollar 23239.05 7.0288 163342.63
Singapore Dollar 144049.35 5.4586 786307.78
Rupee 620785.33 0.0783 48607.49
Australian Dollar 34599.08 4.6892 162242.01
Dirham 30749.99 1.9071 58643.31
Philippine Peso 221398.00 0.1195 26457.06
Saudi Riyal 15000.33 1.8680 28021.22
Account payable 26163925.16
Including: USD 1005776.11 7.0288 7069399.12
Singapore Dollar 365446.54 5.4586 1994826.48
Rupee 14804553.01 0.0783 1159196.50
Australian Dollar 3374612.30 4.6892 15824232.00
Philippine Peso 158805.69 0.1195 18977.28
Saudi Riyal 52083.35 1.8680 97293.78
Other payables 2045959.56
Including: USD 273407.62 7.0288 1921727.48
Singapore Dollar 3901.85 5.4586 21298.64
Australian Dollar 21787.84 4.6892 102167.54
Saudi Riyal 410.00 1.8680 765.90
Other non-current assets 166996.84
Including: USD 23758.94 7.0288 166996.84
(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
62. 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 2025
Short term lease expenses with simplified treatment included in current
48043619.80
profit and loss
Lease expenses of low value assets with simplified treatment included in
391407.49
current profit and loss (except short-term lease)
Interest expense on lease liabilities 587402.86
Total cash outflow related to leasing 48460651.06
243Annual Report 2025 of China Fangda Group Co. Ltd.
Involvement in sale-and-leaseback transactions: None.
(2) The Company as lessor
Operating leases as lessor
□ Applicable □ Inapplicable
In RMB
Including: Income related to
Item Rental income variable lease payments not
included in lease receipts
Rental income 120590265.17 369804.65
Total 120590265.17 369804.65
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 105050316.05 134938024.44
Second year 67773129.84 106208000.52
Third year 43260708.88 72916499.50
Fourth year 26273854.79 53731466.05
Fifth year 20185331.81 32774253.57
Total undiscounted lease receipts
65750209.8889046751.97
after five years
VIII. R&D expenses
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Labor costs 87229245.50 100670006.36
Material costs 29787750.26 50544384.90
Testing fees 9776489.95 11574101.52
Depreciation and amortization 3651149.36 4730697.11
Others 2369777.05 3512181.84
Total 132814412.12 171031371.73
Including: Expensed R&D
132814412.12171031371.73
expenditure
IX. Change to Consolidation Scope
1. Change to the consolidation scope for other reasons
Change in the consolidation scope due to other reasons (such as new subsidiaries and liquidation of
subsidiaries) and the situations:
244Annual Report 2025 of China Fangda Group Co. Ltd.
During the current period the scope of consolidation changed with the addition of two new
subsidiaries established by incorporation: Fangda Facade Contracting L.L.C and Fangda Facade (NSW) Pty
Ltd.X. Equity in Other Entities
1. Interests in subsidiaries
(1) Group Composition
In RMB
Shareholding
Registered Place of Registered
Company Business percentage
Obtaining
capital business address method
Direct Indirect
Designing
Shenzhen Fangda
manufacturing Incorporat
Jianke Group 600000000.00 Shenzhen Shenzhen 98.66% 1.34%
and installation ion
Co. Ltd.of curtain walls
Production
Fangda
processing and
Zhichuang Incorporat
105000000.00 Shenzhen Shenzhen installation of 51.00% 49.00%
Technology Co. ion
subway screen
Ltd.doors
Production and
Fangda New
sales of new
Materials Incorporat
99328800.00 Nanchang Nanchang materials and 75.00% 25.00%
(Jiangxi) Co. ion
composite
Ltd.materials
Shenzhen Fangda
Real estate
Property Incorporat
200000000.00 Shenzhen Shenzhen development and 99.00% 1.00%
Development ion
operation
Co. Ltd.Shenzhen Fangda Design and
Incorporat
New Energy Co. 100000000.00 Shenzhen Shenzhen construction of 99.00% 1.00%
ion
Ltd. PV power plants
Chengdu Fangda Trusted
Construction processing of Incorporat
50000000.00 Chengdu Chengdu 100.00%
Technology Co. building curtain ion
Ltd. wall materials
Shihui
International Virgin Virgin Incorporat
21086400.00 Investment 100.00%
Holding Co. Islands Islands ion
Ltd.Dongguan Fangda Installation and
Incorporat
New Material 272800000.00 Dongguan Dongguan sales of building 100.00%
ion
Co. Ltd. curtain walls
Shenzhen Fangda
Property Property Incorporat
10000000.00 Shenzhen Shenzhen 100.00%
Management Co. management ion
Ltd.Fangda Real estate Incorporat
100000000.00 Nanchang Nanchang 100.00%
(Jiangxi) development and ion
245Annual Report 2025 of China Fangda Group Co. Ltd.
Property operation
Development
Co. Ltd.Pingxiang
Design and
Fangda Luxin Incorporat
10000000.00 Pingxiang Pingxiang construction of 100.00%
New Energy Co. ion
PV power plants
Ltd.Nanchang
Design and
Xinjian Fangda Incorporat
10000000.00 Nanchang Nanchang construction of 100.00%
New Energy Co. ion
PV power plants
Ltd.Dongguan Fangda Design and
Incorporat
New Energy Co. 10000000.00 Dongguan Dongguan construction of 100.00%
ion
Ltd. PV power plants
Shenzhen
Qianhai
Software Incorporat
Kechuangyuan 5000000.00 Shenzhen Shenzhen 100.00%
development ion
Software Co.Ltd.Fangda Zhiyuan
Technology Incorporat
8945.00 Hong Kong Hong Kong Metro screen door 100.00%
(Hong Kong) ion
Co. Ltd.Shenzhen Fangda
Investment Incorporat
100000000.00 Shenzhen Shenzhen Investment 98.00% 2.00%
Holding Co. ion
Ltd.Designing
Fangda
manufacturing Incorporat
Australia Co. 2972280.00 Australia Australia 100.00%
and installation ion
Ltd.of curtain walls
Technology
development and
Shenzhen Fangda sales; Invest in
Yunzhi industry; Incorporat
50000000.00 Shenzhen Shenzhen 100.00%
Technology Co. Operation ion
Ltd. management of
science and
technology park
Building
Chengdu Fangda
decoration and
Curtain Wall Incorporat
50000000.00 Chengdu Chengdu other 100.00%
Technology Co. ion
construction
Ltd.industry
Designing
Fangda
manufacturing Incorporat
Southeast Asia 3000000.00 Vietnam Vietnam 100.00%
and installation ion
Co. Ltd.of curtain walls
Shanghai Fangda Intelligent
Zhijian technology new Incorporat
100000000.00 Shanghai Shanghai 30.00% 70.00%
Technology Co. energy automated ion
Ltd technology
Construction
Shanghai Fangda
technology
Jianzhi Incorporat
50000000.00 Shanghai Shanghai intelligent 100.00%
Technology Co. ion
technology
Ltd.automation
246Annual Report 2025 of China Fangda Group Co. Ltd.
technology
design
production and
installation of
building curtain
walls
Shenzhen
Zhongrong Litai
121000000.00 Shenzhen Shenzhen Business service 55.00% Purchase
Investment Co.Ltd.Design sale and
Fangda Jianke
installation of Incorporat
Hong Kong Co. 36594.00 Hong Kong Hong Kong 100.00%
building curtain ion
Ltd.wall
Inspection
Consolidat
technical service
Shenzhen Fangda ion of
and consultation
Yunzhu entities
10000000.00 Shenzhen Shenzhen of building 100.00%
Technology Co. under
safety and
Ltd. common
building energy
control
saving system
Inspection
Consolidat
technical service
Shenzhen Yunzhu ion of
and consultation
Testing entities
5000000.00 Shenzhen Shenzhen of building 100.00%
Technology Co. under
safety and
Ltd. common
building energy
control
saving system
Production
processing and
General Railway Incorporat
8060094.00 Singapore Singapore installation of 100.00%
Technology Ltd. ion
subway screen
doors
Production
Fangda Zhiyuan
processing and
Technology Incorporat
10000000.00 Wuhan Wuhan installation of 100.00%
(Wuhan) Co. ion
subway screen
Ltd.doors
Production
Fangda Zhiyuan
processing and
Technology Incorporat
1000000.00 Nanchang Nanchang installation of 100.00%
(Nanchang) Co. ion
subway screen
Ltd.doors
Fangda Zhiyuan
Production
Railway
processing and
Transportation Incorporat
1000000.00 Dongguan Dongguan installation of 100.00%
Equipment ion
subway screen
(Dongguan) Co.
doors
Ltd.Jiangxi Fangda Production and
Intelligent sales of new
Incorporat
Manufacturing 250000000.00 Ganzhou Ganzhou materials and 99.00% 1.00%
ion
Technology Co. composite
Ltd. materials
Shenzhen Fangda Installation and
Incorporat
Jianchuang 50000000.00 Shenzhen Shenzhen sales of building 100.00%
ion
Technology Co. curtain walls
247Annual Report 2025 of China Fangda Group Co. Ltd.
Ltd.Shenzhen Fangda Non-
Installation and
Construction business
50000000.00 Shenzhen Shenzhen sales of building 100.00%
Technology Co. combinatio
curtain walls
Ltd. n
Fangda
Installation and
Facade Incorporat
4352063.24 Singapore Singapore sales of building 100.00%
Singapore Pte ion
curtain walls
Ltd
FANGDA FACADE Installation and
Incorporat
PHILIPPINES 1497396.00 Philippine Philippine sales of building 98.999%
ion
INC. curtain walls
GENERAL RAIL
Metro screen door
TECHNOLOGY Incorporat
1521564.25 Philippine Philippine sales and 99.999%
PHILIPPINES ion
installation
INC.Installation and
FANGDA GULF Incorporat
788545.80 Dubai Dubai sales of building 100.00%
DMCC ion
curtain walls
GLOBAL MEGA Designing
INTERNATIONAL Saudi Saudi manufacturing Incorporat
4217280.00100.00%
HOLDINGS Arabia Arabia and installation ion
LIMITED of curtain walls
FANGDA FACADE Installation and
Incorporat
CONTRACTING 1936258.00 Dubai Dubai sales of building 100.00%
ion
L.L.C curtain walls
Installation and
FANGDA FACADE Incorporat
2344600.00 Australia Australia sales of building 100.00%
(NSW) PTY LTD ion
curtain walls
(2) Major non wholly-owned subsidiaries
In RMB
Profit and loss Dividend to be Interest balance of
Shareholding of
attributed to distributed to minority
Company minority
minority minority shareholders in the
shareholders
shareholders shareholders end of the period
Zhongrong Litai 45.00% 35230.12 48343241.08
(3) Financial highlights of major non wholly owned subsidiaries
In RMB
Closing balance Opening balance
Non- Non-
Compan Non- Curren Non- CurrenCurren Total curren Total Curren Total curren Total
y curren t curren tt of t liabil t of t liabil
t liabil t liabil
assets assets liabil ities assets assets liabil ities
assets ities assets ities
ities ities
Zhongr 21041 21043 10300 10300 20971 20974 10239 10239
2630031600
ong 1282. 7582. 8157. 8157. 1213. 2813. 1677. 1677..00.00
Litai 10 10 51 51 30 30 87 87
In RMB
Company Amount occurred in the current period Occurred in previous period
248Annual Report 2025 of China Fangda Group Co. Ltd.
Total of Business Total of Business
Net
Turnover Net profit misc. operation Turnover misc. operation
profit
incomes cash flows incomes cash flows
Zhongrong
110091.7278289.1678289.16-379966.11110091.7219074.1819074.18-27370.15
Litai
2. Interests in joint ventures or associates
(1) Financial summary of insignificant joint ventures and associates
In RMB
Closing balance/amount occurred Opening balance/amount occurred
in this period in previous period
Joint venture:
Total shareholding
Associate:
Total book value of investment 32988644.63 56690973.97
Total shareholding
Net profit -23702329.34 -70043.43
--Total of misc. incomes -23702329.34 -70043.43
XI. Government Subsidies
1. Governmental subsidy recognized as receivable at the end of the report period
□ Applicable □ Inapplicable
Closing balance of accounts receivable: RMB527217.36.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 misc. Other change
included in
Accounti Opening Amount of new gains in the Closing Assets/earn
non-
ng item balance subsidy recorded in current balance ing-related
operating
this period period
revenue
Deferred Assets-
10669612.1317776306.002141640.4426304277.69
earning related
Total 10669612.13 17776306.00 2141640.44 26304277.69
3. Government subsidies accounted into current profit or loss.
□ Applicable □ Inapplicable
In RMB
249Annual Report 2025 of China Fangda Group Co. Ltd.
Accounting item Amount occurred in the current period Occurred in previous period
Other gains 2141640.44 630958.59
Other gains 7592656.24 13396327.26
Financial expenses 1639000.00 2616200.00
Total 11373296.68 16643485.85
XII. Risks of Financial Tools
1. Types of risks arising from financial instruments
The risks associated with the financial instruments of the Company arise from the various financial
assets and liabilities recognized by the Company in the course of its operations including credit risks
liquidity risks and market risks.The management objectives and policies of various risks related to financial instruments are
governed by the management of the Company. The operating management is responsible for daily risk
management through functional departments (for example the Company's credit management department
reviews the Company's credit sales on a case-by-case basis). The internal audit department of the Company
conducts daily supervision of the implementation of the Company's risk management policies and procedures
and reports relevant findings to the Company's audit committee in a timely manner.The overall goal of the Company's risk management is to formulate risk management policies that
minimize the risks associated with various financial instruments without excessively affecting the
Company's competitiveness and resilience.A. Credit risk
Credit risk is caused by the failure of one party of a financial instrument in performing its
obligations causing the risk of financial loss for the other party. The credit risk of the Company
mainly comes from monetary capital notes receivable accounts receivable other receivables receivables
financing contract assets etc. The credit risk of these financial assets comes from the default of the
counterparts 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.
250Annual Report 2025 of China Fangda Group Co. Ltd.
For notes receivable accounts receivable other receivables receivables financing and contract
assets the Company sets relevant policies to control credit risk exposure. The Group set the credit line
and term for debtors according to their financial status external rating and possibility of getting
third-party guarantee credit record and other factors. The Group regularly monitors debtors' credit
record. For those with poor credit record the Group will send written payment reminders shorten or
cancel credit term to lower the general credit risk.
(1) Significant increases in credit risk
The credit risk of the financial instrument has not increased significantly since the initial
confirmation. In determining whether the credit risk has increased significantly since the initial
recognition the Company considers reasonable and evidenced information including forward-looking
information that can be obtained without unnecessary additional costs or effort. The Company determines
the relative risk of default risk of the financial instrument by comparing the risk of default of the
financial instrument on the balance sheet date with the risk of default on the initial recognition date
to assess the credit risk of the financial instrument from initial recognition.When one or more of the following quantitative and qualitative criteria are triggered the Company
believes that the credit risk of financial instruments has increased significantly: the quantitative
criteria are mainly the probability of default in the remaining life of the reporting date increased by
more than a certain proportion compared with the initial recognition; the qualitative criteria are the
major adverse changes in the operation or financial situation of the major debtors the early warning of
customer list etc.
(2) Definition of assets where credit impairment has occurred
In order to determine whether or not credit impairment occurs the standard adopted by our company
is consistent with the credit risk management target for related financial instruments and quantitative
and qualitative indicators are considered.Major financial difficulties have occurred to the issuer or the debtor; Breach of contract by the
debtor such as payment of interest or default or overdue of principal; (B) The concession that the
debtor would not make under any other circumstances for economic or contractual considerations relating
to the financial difficulties of the debtor; The debtor is likely to be bankrupt or undertake other
251Annual Report 2025 of China Fangda Group Co. Ltd.
financial restructuring; The financial difficulties of the issuer or debtor lead to the disappearance of
the active market for the financial asset; To purchase or generate a financial asset at a substantial
discount which reflects the fact that a credit loss has occurred.Credit impairment in financial assets may be caused by a combination of multiple events not
necessarily by events that can be identified separately.
(3) Expected credit loss measurement
Depending on whether there is a significant increase in credit risk and whether a credit impairment
has occurred the Company prepares different assets for a 12-month or full expected credit loss. The key
parameters of expected credit loss measurement include default probability default loss rate and default
risk exposure. Taking into account the quantitative analysis and forward-looking information of
historical statistics (such as counterpart 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 counterpart 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. The assessment of significant increases in credit risk and the
calculation of expected credit losses both involve forward-looking information. 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 Company's accounts
receivable the accounts receivable (including contract assets) from the top five customers accounted for
252Annual Report 2025 of China Fangda Group Co. Ltd.
12.02% of the total accounts receivable (prior period: 11.01%). Among the Company's other receivables
the other receivables from the top five counterparts by amount accounted for 70.50% of the total other
receivables (prior period: 71.82%).B. 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 December 31 2025 the maturity of the Company's financial liabilities is as follows:
In RMB10000
December 31 2025
Item Less than 1
Within 1-3 years Over 3 years Total
year
Short-term loans 120284.65 120284.65
Notes payable 42911.06 42911.06
Account payable 200969.52 1659.43 1440.17 204069.12
Employees' wage payable 6781.28 6781.28
Other payables 5087.03 1622.93 5827.31 12537.27
Non-current liabilities due in 1
37908.9237908.92
year
Other current liabilities 6091.89 6091.89
Long-term loans 30000.00 99000.00 129000.00
Lease liabilities 739.16 158.79 897.95
Total 420034.35 34021.52 106426.27 560482.14
(Continued)
December 31 2024
Item Less than 1
Within 1-3 years Over 3 years Total
year
Short-term loans 166369.64 166369.64
253Annual Report 2025 of China Fangda Group Co. Ltd.
Derivative financial liabilities 152.06 152.06
Notes payable 68118.81 68118.81
Account payable 213195.52 297.46 1166.51 214659.49
Other payables 8013.60 1109.24 2968.96 12091.80
Non-current liabilities due in 1
12846.9512846.95
year
Other current liabilities 5083.56 5083.56
Long-term loans 96700.00 17000.00 113700.00
Lease liabilities 923.06 142.20 1065.26
Total 473780.14 99029.76 21277.67 594087.57
C. Market risk
(1) Credit risks
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
Company's subsidiaries established in the Hong Kong Special Administrative Region of the People's
Republic of China and other overseas jurisdictions which use Hong Kong Dollars U.S. Dollars Australian
Dollars Vietnamese Dong Euros Indian Rupees UAE Dirhams or Singapore Dollars for pricing and
settlement the Company's other principal operations are priced and settled in RMB.As of Wednesday December 31 2025 the foreign currency financial assets and foreign currency
financial liabilities of the Company at the end of the period are listed in the description of foreign
currency monetary items in Note V 61.The Company pays close attention to the impact of exchange rate changes on the Company's exchange
rate risk. The Company continuously monitors the scale of foreign currency transactions and foreign
currency assets and liabilities to minimize foreign exchange risks. To this end the Company may avoid
foreign exchange risks by signing forward foreign exchange contracts or currency swap contracts.
(2) Exchange rate risk
The Group's interest rate risk mainly arises from long-term interest-bearing debts such as long-term
bank loans. Financial liabilities with floating interest rate cause cash flow interest rate risk for the
Group. Financial liabilities with fixed interest rate cause fair value interest rate risk for the Group.
254Annual Report 2025 of China Fangda Group Co. Ltd.
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.For the period ended December 31 2025 assuming all other risk variables remain unchanged if the
interest rate on borrowings calculated at floating rates were to increase or decrease by 50 basis points
the Company's net profit for the year would decrease or increase by RMB6502300 (prior period:
RMB4800000).
2. Hedging
(1) The Company conducts hedging business for risk management.
□ Applicable □ Inapplicable
The impact of
Economic
Effective the
Corresponding Qualitative and relationships
achievement of corresponding
risk management quantitative between hedged
Item expected risk hedging
strategies and information about items and
management activities on
objectives the hedged risk related hedging
objectives the risk
instruments
exposure
Utilizing the The Company uses The underlying The Company has
hedging function aluminum futures to variables are formulated
of futures tools hedge aluminum- standard relevant
the Company related raw aluminum internal Buy or sell
carries out materials in its prices and the management corresponding
aluminum futures prospective values of systems for its aluminum
hedging business procurement hedged items aluminum futures
Aluminum to reasonably business. The and hedging futures hedging contracts to
futures avoid the risks Company adopts the instruments and forward hedge the
hedging brought about by strategy of dynamic change in foreign risk exposure
fluctuations in hedging of commodity opposite exchange existing in
the prices of price risk exposure directions due trading the spot
relevant raw by adjusting its to facing the business and business
materials to its futures contract same hedged continuously side.operations to position according risks and evaluates the
enhance the to a certain there is a effectiveness
Company's overall percentage of its relationship of of hedging to
255Annual Report 2025 of China Fangda Group Co. Ltd.
ability to prospective mutual hedging ensure that the
withstand risks procurement of risks. hedging
and to strengthen exposure and the relationship is
the robustness of exposure* hedging effective in
its operating ratio is basically the designated
activities. the same as the accounting
quantity of the period and
commodity that the risks
represented by the of fluctuations
futures position. in raw material
Utilizing the purchasing
hedging and The Company uses prices and
protection forward foreign exchange rate
function of exchange contracts fluctuations of
The underlying
forward foreign to hedge expected foreign-
variables are
exchange receivables. The currency
all foreign
contracts the Company employs a receivables are
currency
Company carries strategy of dynamic controlled
exchange rates. Buy or sell
out the business hedging of exchange within a
The exchange corresponding
of hedging rate exposures reasonable
Forward rates of the forward
foreign currency whereby foreign range so as to
foreign hedged item and foreign
receivables in exchange contract enhance the
exchange the hedging exchange
order to positions are Company's risk-
contract instrument contracts to
reasonably avoid adjusted according resistance
value change in hedge the
the risks brought to a certain ability and
preservati opposite risk exposure
by exchange rate percentage of the increase the
on directions due of foreign
fluctuations to expected foreign robustness of
to exposure to currency
its operations currency receivable its operating
the same hedged receivables.enhance the exposure and the activities.risk and there
Company's overall ratio of the
is a
ability to exposure* hedge is
relationship of
withstand risks essentially the same
risk hedging.and strengthen as the receivable
the soundness of represented by the
its operating contract position.activities.
(2) The Company conducts eligible hedging operations and applies hedge accounting.
In RMB
Cumulative fair
value hedge
Carrying value Hedge
adjustments to
associated with effectiveness Impact of hedge accounting
hedged items
Item hedged items and and sources of related to the Company's
included in the
hedging hedge financial statements
carrying value of
instruments ineffectiveness
the hedged item
recognized
Types of hedge risk
Derivative financial assets:
Relevance of RMB1459950.00
hedged items to Other comprehensive income:
Price risk 1459950.00 Inapplicable
hedging RMB1240957.50
instruments Deferred tax liabilities:
RMB218992.50
Exchange rate Inapplicable Relevance of Finance costs: RMB97537.72
256Annual Report 2025 of China Fangda Group Co. Ltd.
risk hedged items to
hedging
instruments
Type
Derivative financial assets:
RMB1459950.00
Relevance of
Other comprehensive income:
Cash flow hedged items to
1459950.00 Inapplicable RMB1240957.50
hedging hedging
Deferred tax liabilities:
instruments
RMB218992.50
Finance costs: RMB97537.72
(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
In RMB
Amount of
Nature of
Way of financial Derecogniza
financial assets Basis for judging derecognization
transfer assets tion
transferred
transferred
Promissory notes used for
discounting or endorsement are
Outstanding accepted by banks or enterprises
Endorsement Not
promissory notes with low credit ratings discounting
or 40781530.88 derecognize
in notes or endorsement does not affect
discounting d
receivable recourse and the credit risk and
deferred payment risk associated
with the notes remain untransferred
Bankers' acceptances used for
Outstanding
discounting or endorsement are
Endorsement bankers'
Derecogniza accepted by banks with high credit
or acceptances in 33761787.71
tion ratings and the credit risk and
discounting receivables
deferred payment risk associated
financing
with the instruments are low
Outstanding
receivables in Derecogniza
Factoring 105859442.51 Non-recourse factoring
receivables tion
financing
Total 180402761.10
(2) Financial assets derecognized due to transfers
□ Applicable □ Inapplicable
In RMB
Item Transfer method of Amount of financial Gain or loss related to
257Annual Report 2025 of China Fangda Group Co. Ltd.
financial assets assets derecognized the de-recognition
Outstanding bankers'
Endorsement or
acceptances in 33761787.71
discounting
receivables financing
Account receivable Factoring 105859442.51 -3565876.31
Total 139621230.22 -3565876.31
(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 Second level fair Third level fair
First level fair value Total
value value
1. Continuous fair value
--------
measurement
(I) Transactional
1460360.061460360.06
financial assets
1. Financial assets
measured at fair value
with variations accounted 1460360.06 1460360.06
into current income
account
(1) Derivative financial
1459950.001459950.00
assets
2. Transactional financial
410.06410.06
assets
(II) Investment property 5548371426.50 5548371426.50
1. Leased building 5548371426.50 5548371426.50
(III) Other non-current
6516131.636516131.63
financial assets
Total assets measured at
1460360.065554887558.135556347918.19
fair value continuously
2. Discontinuous fair
--------
value measurement
2. Recognition basis of market value of continuous and discontinuous items measured at first level fair
value
For the financial instruments traded in the active market the Company determines their fair value
based on their quoted prices in the active market; for the financial instruments not traded in the active
market the Company adopts valuation technology to determine their fair value. The valuation models are
258Annual Report 2025 of China Fangda Group Co. Ltd.
mainly cash flow discount model and market comparable company model. The input value of valuation
technology mainly includes risk-free interest rate benchmark interest rate exchange rate credit point
difference liquidity premium lack of liquidity discount etc.
3. Valuation technique and qualitative and quantitative information for key parameters of continuous and
discontinuous second level fair value items
For derivative financial assets and derivative financial liabilities with fair value of forward
exchange contracts the fair value is determined based on the market value of expected earnings at the
balance sheet date.Receivables financed at fair value through other comprehensive income are notes receivable for
which the fair value is determined based on the book value due to the short remaining maturity.
4. Valuation technique and qualitative and quantitative information for key parameters of continuous and
discontinuous third level fair value items
Investment properties measured at fair value are appraised using the comparative and income
approaches. Comparison method: It selects a certain number of comparable examples compares them with the
valuation object and processes the comparable instance transaction prices according to the difference to
obtain the value or price of the valuation object. The income approach is a method of predicting the
future earnings of the object of valuation and using the rate of compensation or capitalization rate
income multiplier to convert the future earnings into value to get the value or price of the object of
valuation.
5. 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.
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 other receivables short-term borrowings notes payable accounts
payables other payables and long-term payables.
259Annual Report 2025 of China Fangda Group Co. Ltd.
XIV. Related Parties and Transactions
1. Parent of the Company
Share of the Voting power of
Registere Registered
Parent Business parent co. in the parent
d address capital
the Company company
Shenzhen Banglin Limited
RMB30
Technologies Development Shenzhen liability 11.11% 11.11%
million
Co. Ltd. company
Limited
Shengjiu Investment Ltd. Hong Kong liability HKD1 million 10.73% 10.73%
company
Particulars about the parent of the Company
* The major shareholder of the Company Shenzhen Banglin Technology Development Co. Ltd. is
wholly owned by natural persons among whom Mr. Xiong Jianming Chairman of the Company holds 85% of the
shares and Mr. Xiong Xi Vice Chairman of the Company holds 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
Key joint ventures or associates of the Company are disclosed in Note X "Interests in Other
Entities."
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
Shenzhen Ganshang Joint Investment Co. Ltd. Affiliates of the Company
4. Other associates
Other related parties Relationship with the Company
Shenzhen Yikang Real Estate Co. Ltd. Controlled subsidiaries
260Annual Report 2025 of China Fangda Group Co. Ltd.
Shenzhen Skylot Technology Co. Ltd. Common actual controller
Director manager and secretary of the Board Key management
5. Related transactions
(1) Related transactions for purchase and sale of goods provision and acceptance of services
Sales of goods and services
In RMB
Amount occurred in the Occurred in previous
Affiliated party Related transaction
current period period
Shenzhen Skylot Property service and
34773.1417392.00
Technology Co. Ltd. sales of goods
(2) Related leasing
The Company is the leasor:
In RMB
Category of asset for Rental recognized in the Rental recognized in the
Name of the leasee
lease period period
Shenzhen Skylot
Houses & buildings 86857.14 86857.15
Technology Co. Ltd.
(3) Related guarantees
The Company is the guarantor:
In RMB
Whether the
guarantee
Amount
Beneficiary party Start date Due date has been
guaranteed
fully
performed
Three years after the
Fangda Construction
930000000.00 December 28 2023 expiration date of debt Yes
Technology
performance
Three years after the
Fangda Construction
240000000.00 27 May 2024 expiration date of debt Yes
Technology
performance
Three years after the
Fangda Construction
40000000.00 June 20 2024 expiration date of debt Yes
Technology
performance
Three years after the
Fangda Construction
390000000.00 January 24 2024 expiration date of debt Yes
Technology
performance
Three years after the
Fangda Construction
300000000.00 October 20 2023 expiration date of debt Yes
Technology
performance
Three years after the
Fangda Construction
300000000.00 December 21 2023 expiration date of debt Yes
Technology
performance
Fangda Zhiyuan 360000000.00 June 27 2024 Three years after the Yes
261Annual Report 2025 of China Fangda Group Co. Ltd.
expiration date of debt
performance
Three years after the
Fangda Zhiyuan 150000000.00 30 May 2024 expiration date of debt Yes
performance
Three years after the
Fangda Zhiyuan 100000000.00 September 25 2023 expiration date of debt Yes
performance
Three years after the
Fangda Zhiyuan 100000000.00 December 21 2023 expiration date of debt Yes
performance
Three years after the
Fangda Property 1350000000.00 February 25 2020 expiration date of debt Yes
performance
Three years after the
Fangda New Material 100000000.00 July 8 2024 expiration date of debt Yes
performance
Three years after the
Fangda New Material 85000000.00 November 2 2023 expiration date of debt Yes
performance
Three years after the
Fangda Zhijian 70000000.00 8 May 2024 expiration date of debt Yes
performance
Three years after the
Fangda Yunzhu 10000000.00 07 May 2024 expiration date of debt Yes
performance
Three years after the
Fangda Yunzhu 10000000.00 June 28 2024 expiration date of debt Yes
performance
Three years after the
Fangda Yunzhu 6000000.00 June 3 2024 expiration date of debt Yes
performance
Three years after the
Fangda Dongguan New
50000000.00 August 26 2024 expiration date of debt Yes
Material
performance
Three years after the
Fangda Construction
1030000000.00 January 17 2025 expiration date of debt Yes
Technology
performance
Three years after the
Fangda Construction
150000000.00 11 May 2024 expiration date of debt Yes
Technology
performance
Three years after the
Fangda Construction
500000000.00 September 4 2024 expiration date of debt Yes
Technology
performance
Three years after the
Fangda Construction
300000000.00 November 11 2024 expiration date of debt Yes
Technology
performance
Three years after the
Fangda Construction
600000000.00 June 27 2024 expiration date of debt Yes
Technology
performance
Three years after the
Fangda Construction
200000000.00 December 27 2024 expiration date of debt Yes
Technology
performance
Three years after the
Fangda Construction
600000000.00 December 19 2024 expiration date of debt Yes
Technology
performance
Fangda Zhiyuan 358000000.00 June 27 2024 Three years after the Yes
262Annual Report 2025 of China Fangda Group Co. Ltd.
expiration date of debt
performance
Three years after the
Fangda Zhiyuan 200000000.00 November 11 2024 expiration date of debt Yes
performance
Three years after the
Fangda Zhiyuan 150000000.00 September 4 2024 expiration date of debt Yes
performance
Three years after the
Fangda Zhiyuan 100000000.00 11 May 2024 expiration date of debt Yes
performance
Three years after the
Total amount of
8779000000.00 expiration date of debt
guarantee fulfilled
performance
Three years after the
Fangda Construction
1010000000.00 December 21 2025 expiration date of debt No
Technology
performance
Three years after the
Fangda Construction
390000000.00 January 14 2025 expiration date of debt No
Technology
performance
Three years after the
Fangda Construction
150000000.00 Jul. 01 2025 expiration date of debt No
Technology
performance
Three years after the
Fangda Construction
480000000.00 December 15 2024 expiration date of debt No
Technology
performance
Three years after the
Fangda Construction
111500000.00 August 16 2023 expiration date of debt No
Technology
performance
Three years after the
Fangda Construction
500000000.00 Jul. 16 2025 expiration date of debt No
Technology
performance
Three years after the
Fangda Construction
200000000.00 December 9 2025 expiration date of debt No
Technology
performance
Three years after the
Fangda Construction
250000000.00 January 10 2025 expiration date of debt No
Technology
performance
Three years after the
Fangda Construction
49000000.00 28 April 2025 expiration date of debt No
Technology
performance
Three years after the
Fangda Construction
200000000.00 November 4 2024 expiration date of debt No
Technology
performance
Three years after the
Fangda Construction
400000000.00 August 7 2025 expiration date of debt No
Technology
performance
Three years after the
Fangda Construction
350000000.00 21 April 2025 expiration date of debt No
Technology
performance
Three years after the
Fangda Construction
300000000.00 27 March 2025 expiration date of debt No
Technology
performance
Three years after the
Fangda Construction
250000000.00 December 23 2025 expiration date of debt No
Technology
performance
Fangda Construction 600000000.00 December 12 2025 Three years after the No
263Annual Report 2025 of China Fangda Group Co. Ltd.
Technology expiration date of debt
performance
Three years after the
Fangda Zhijian 70000000.00 June 30 2025 expiration date of debt No
performance
Three years after the
Fangda Zhiyuan 180000000.00 December 15 2024 expiration date of debt No
performance
Three years after the
Fangda Zhiyuan 358000000.00 Jul. 22 2025 expiration date of debt No
performance
Three years after the
Fangda Zhiyuan 200000000.00 21 April 2025 expiration date of debt No
performance
Three years after the
Fangda Zhiyuan 100000000.00 December 9 2025 expiration date of debt No
performance
Three years after the
Fangda Zhiyuan 150000000.00 Jul. 16 2025 expiration date of debt No
performance
Three years after the
Fangda Zhiyuan 100000000.00 Jul. 01 2025 expiration date of debt No
performance
Three years after the
Fangda Zhiyuan 154750000.00 November 21 2023 expiration date of debt No
performance
Three years after the
Fangda Zhiyuan 150000000.00 January 13 2025 expiration date of debt No
performance
Three years after the
Fangda Yunzhu 10000000.00 25 March 2025 expiration date of debt No
performance
Three years after the
Fangda Yunzhu 7000000.00 21 April 2025 expiration date of debt No
performance
Three years after the
Fangda New Material 85000000.00 27 February 2025 expiration date of debt No
performance
Three years after the
Fangda Property 1100000000.00 02 April 2025 expiration date of debt No
performance
Three years after the
Fangda Intelligent
300000000.00 22 February 2024 expiration date of debt No
Manufacturing
performance
Date of project contract
Fangda Zhiyuan 318960200.00 17 February 2024 No
completion
Date of project contract
Fangda Zhiyuan 248851600.00 17 February 2024 No
completion
Three years after the
Dongguan New Materials 50000000.00 Jul. 01 2025 expiration date of debt No
performance
Total amount of
guarantee being 8823061800.00
performed
264Annual Report 2025 of China Fangda Group Co. Ltd.
Description of related party guarantee: The above-mentioned guarantees are all associated guarantees
within interested entities of the Company.
(4) Remuneration of key management
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Key management personnel
9042695.5911179886.17
compensation
6. Receivable and payables due with related parties
(1) Receivable interest
In RMB
Closing balance Opening balance
Item Affiliated party Remaining book Bad debt Remaining book Bad debt
value provision value provision
Account Shenzhen Skylot
10048.39100.4885792.00857.92
receivable Technology Co. Ltd.Shenzhen Ganshang
Other
Joint Investment Co. 3791089.25 2531120.89 3791089.25 56487.23
receivables
Ltd.Other Shenzhen Yikang Real
76062675.83760626.7676062675.831133333.87
receivables Estate Co. Ltd.
(2) Receivable interest
In RMB
Closing balance of Opening balance of book
Item Affiliated party
book value value
Shenzhen Yikang Real Estate Co.Other payables 26159711.72 26159711.72
Ltd.Shenzhen Skylot Technology Co.Other payables 19760.00 19760.00
Ltd.Shenzhen Ganshang Joint
Other payables 3355.36 3355.36
Investment Co. Ltd.XV. Commitment and Contingent Events
1. Major commitments
Major commitments that exist on the balance sheet day
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
265Annual Report 2025 of China Fangda Group Co. Ltd.
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 December 31 2025 Fangda Property has paid Party B and the project company
RMB50 million of security deposit RMB20 million of service fee RMB61937200 of equity transfer and
RMB81862200 of other related payments.The Company has no other commitments that should be disclosed by December 31 2025.
2. Contingencies
Significant contingencies on the balance sheet date:
(1) Contingent liabilities formed by material lawsuit or arbitration and their influences on the
financial position
In August 2024 Fangda Construction Technology Company filed a lawsuit with the People's Court of
Longgang District Shenzhen requesting South China International Industrial Raw Materials City (Shenzhen)
Co. Ltd. and South China City Holdings Ltd. to pay Fangda Construction Technology Company the principal
and interest of the project payment for the South China International Electronic Industrial Raw Materials
Logistics Zone (Phase I) totaling RMB46004481.42. The company also claimed the priority right of
compensation for construction project payments. As of the disclosure date of this report the case is
still under trial.* On June 19 2019 Langfang Aomei Jiyie Real Estate Development Co. Ltd. filed a lawsuit against
Fangda Construction Technology Company with the People's Court of Langfang Development Zone requesting
the termination of the construction contract compensation for delay and quality breach penalties
totaling RMB13721315.00 double the return of the project payment amounting to RMB6000000 and later
added claims for repair project payments of RMB22935269.98. On September 11 2019 Fangda Construction
Technology Company filed a counterclaim requesting payment for project payments and other amounts
totaling RMB13939863.27. As of the disclosure date of this report the case is still under trial.* In March 2022 Xiangheng Real Estate (Jinan) Co. Ltd. filed for arbitration with the Jinan
Arbitration Commission later amending the arbitration request to demand that Fangda Construction
Technology Company bear costs due to quality issues in the supply and installation of aluminum alloy
266Annual Report 2025 of China Fangda Group Co. Ltd.
doors windows louvers and curtain walls for the Jinan Kerry Integrated Development Project (Phases I
and II). These costs included deductions and expenses for repair rectification and rework totaling
RMB8995672.29 dismantling fees for construction gondolas of RMB4000 quality inspection and
assessment fees for project defects of RMB323271.91 and attorney fees of RMB690000.00. In April 2022
Fangda Construction Technology Company filed a counter-arbitration application requesting Xiangheng Real
Estate (Jinan) Co. Ltd. to pay project payments and expenses totaling RMB18062462.28. As of the
disclosure date of this report the Jinan Arbitration Commission has issued a preliminary ruling on the
undisputed portion of the counter-arbitration application filed by Fangda Construction Technology Company
requiring Xiangheng Real Estate (Jinan) Co. Ltd. to first pay Fangda Construction Technology Company
RMB5073672.92 and interest. Fangda Construction Technology Company has applied for compulsory
enforcement of this portion. The remaining parts of the case are being consolidated for trial.* In August 2025 Fangda Construction Technology Company filed a lawsuit with the Wenjiang District
People's Court of Chengdu City requesting that Chengdu Wenjiang Yufu Wansheng Rail Transit Urban
Development Co. Ltd. pay RMB17238120.44 in total for construction costs and interest related to the
Chengdu Wenjiang R&F Center project that its sole shareholder Chengdu Xinghuangfei Enterprise
Management Co. Ltd. bear joint and several liability and that Fangda Construction Technology Company
be granted priority rights to the construction payment. In February 2026 the court of first instance
ruled that Chengdu Wenjiang Yufu Wansheng Rail Transit Urban Development Co. Ltd. shall pay Fangda
Company construction costs of RMB17222549.37 and confirmed that Fangda Construction Technology Company
has priority rights over the curtain wall works of the tower and podium of the Chengdu Wenjiang R&F
Center. As of the date of this report's disclosure Chengdu Wenjiang Yufu Wansheng Rail Transit Urban
Development Co. Ltd. has appealed the first-instance judgment and the case remains under trial.* In January 2026 Fangda Construction Technology Company filed a lawsuit with the Qingpu District
People's Court of Shanghai requesting that Shanghai Lianhong Real Estate Co. Ltd. pay RMB26269434.95
in principal and interest for construction costs related to the West Hongqiao Project and asserting a
priority right to the construction payment. As of the disclosure date of this report the court has filed
and accepted the case and is awaiting a hearing.* In June 2025 Fangda Construction Technology Company filed a lawsuit with the Longhua District
People's Court of Shenzhen requesting that Shenzhen Jinshunyuan Industrial Group Co. Ltd. pay
RMB4738376.50 in principal and interest for construction costs related to the Jinshun Mingju Project
267Annual Report 2025 of China Fangda Group Co. Ltd.
and asserting a priority right to the construction payment In December 2025 Shenzhen Jinshunyuan
Industrial Group Co. Ltd. filed a counterclaim with the Longhua District People's Court of Shenzhen
requesting that Fangda Construction Technology Company pay RMB9250070 as liquidated damages for delay
in project completion. As of the disclosure date of this report the court has filed and accepted the
case and is awaiting a hearing.
(2) Pending major lawsuits
* In September 2022 Fangda Real Estate Co. Ltd. filed a lawsuit to the People's Court of Nanshan
District Shenzhen requiring Shenzhen Hongtao Group Co. Ltd. to pay the total principal and interest of
Fangda Real Estate Co. Ltd. to Fangda Real Estate Co. Ltd. for the purchase of building 3 # in Fangda
City amounting to RMB56527427.01 and Hongtao Company's counterclaim party Dada Real Estate Co. Ltd.requested to cancel the signed Supplementary Agreement on Real Estate Sales and pay the liquidated
damages of RMB44046859.04 for overdue certificate processing. The court has issued a first instance
judgment ruling that Hongtao Company shall pay Fangda Real Estate Company the purchase price of
RMB40127678.19 and overdue payment interest (temporarily calculated as RMB8418135.54 until June 30
2022). The subsequent interest shall be calculated based on RMB40127678.19 and continue to be
calculated until the actual payment date according to the loan market quotation interest rate standard
published by the National Interbank Funding Center. Reject all counterclaim requests from Hongtao Company.Both parties later filed an appeal. As of the disclosure date of this report the second instance
judgment has been issued and the original judgment has been upheld. Currently the case has entered the
execution stage.* In April 2023 Fangda Jianke filed a lawsuit with the Guangzhou Intermediate People's Court
demanding the termination of the construction contract signed with Guangzhou Kaidar Investment Co. Ltd.for the Kaidar Hub International Plaza project and requiring Guangzhou Kaidar Investment Co. Ltd. to
pay the principal amount of the project payment of RMB113529244.60 and interest to Fangda Jianke and
claiming the priority right to receive compensation for the construction project price. As of the date of
this report the court has issued a first instance judgment stating that Kaidaer 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.
268Annual Report 2025 of China Fangda Group Co. Ltd.
* In September 2022 Fangda Jianke Co. Ltd. filed a lawsuit to the People's Court of Longhua
District requiring Longguang Engineering Construction Co. Ltd. to pay the total principal and interest
of the project funds of Longguang Jiuzuan Project Plot 05 and Plot 09 to Fangda Construction Technology
Co. Ltd. totaling RMB33197543.00. As of the disclosure date of this report the case regarding the
Jiuzuan Plot 05 project has concluded with both first and second instance judgments. The first instance
judgment ruled that Longguang Company must pay Fangda Construction Technology Company project payments of
RMB7709679.55 a quality guarantee deposit of RMB6033911.38 and corresponding interest while also
granting priority compensation rights on the proceeds from the sale or auction of the curtain wall
fabrication and installation project. The second instance judgment upheld the first instance decision
regarding the project payments quality guarantee deposit corresponding interest and priority
compensation rights and additionally ruled that Shenzhen Longguang Junjing Real Estate Development Co.Ltd. the owner of the Longguang Jiuzuan Plot 05 project is jointly liable for the debt to Fangda
Construction Technology Company. The case has entered the enforcement stage. As of the disclosure date of
this report the case regarding the Jiuzuan Plot 09 project has concluded with both first and second
instance judgments. The first instance judgment ruled that Longguang Company must pay Fangda Construction
Technology Company project payments of RMB9166924.08 a quality guarantee deposit of RMB4875762.96
and corresponding interest while also granting priority compensation rights on the proceeds from the
sale or auction of the curtain wall fabrication and installation project. The second instance judgment
upheld the first instance decision regarding the project payments quality guarantee deposit
corresponding interest and priority compensation rights and additionally ruled that Shenzhen Longguang
Junjing Real Estate Development Co. Ltd. the owner of the Longguang Jiuzuan Plot 09 project is jointly
liable for the debt to Fangda Construction Technology Company. The case has entered the enforcement stage.* In November 2023 Fangda Construction Technology Company filed a lawsuit with the People's Court
of Honggutan District Nanchang City requesting Jiangxi Huilian Real Estate Co. Ltd. and Jiangxi Boneng
Industrial Group Co. Ltd. to pay the project payments and interest totaling RMB45309399.07 for the
Nanchang Shangle Center project and claimed priority compensation rights for the project payments. The
first instance judgment ruled that Jiangxi Huilian Real Estate Co. Ltd. must pay Fangda Construction
Technology Company RMB38800206.53 and interest and that Jiangxi Boneng Industrial Group Co. Ltd. is
jointly liable for RMB37563144.42 of the project payments and interest. However the court did not
support the request for the accelerated maturity of the quality guarantee deposit and the priority
269Annual Report 2025 of China Fangda Group Co. Ltd.
compensation rights for the project payments. Fangda Construction Technology Company appealed and the
second instance judgment supported the priority compensation rights. As of the disclosure date of this
report the case has entered the enforcement stage.* In December 2024 Fangda Construction Technology Company filed a lawsuit with the People's Court
of Futian District Shenzhen requesting Shenzhen Suhao Investment Co. Ltd. (hereinafter referred to as
"Suhao Company") and Zhang Shengjie to pay Fangda Construction Technology Company the principal and
interest of the project payment for the Ziyuan Building curtain wall project totaling RMB18600899.46.The company also claimed the priority right of compensation for construction project payments. In August
2025 the court of first instance issued a judgment ruling that Suhao Company shall pay Fangda
Construction Technology Company RMB18171796.03 plus overdue interest (calculated at a daily rate of
0.03% on the principal amount of RMB17814305.41 from November 1 2024 until the date of actual
repayment; the RMB110000 already paid by Suhao Company shall be offset against the aforementioned
interest) that Zhang Shengjie shall bear joint and several liability for Suhao Company's obligations
and that Fangda Construction Technology Company's priority right to payment for the curtain wall works of
the Ziyuanyuan Building Project is confirmed. In September 2025 as Suhao Company and Zhang Shengjie
failed to comply with the court judgment Fangda Construction Technology Co. Ltd. has applied to the
Futian District People's Court of Shenzhen Municipality for enforcement. The case is currently under
enforcement.* In August 2025 Fangda Construction & Technology Co. Ltd. filed a lawsuit with the Yuhang
District People's Court of Hangzhou City requesting Zhejiang Fuli Real Estate Development Co. Ltd. and
Hangzhou Lianfu Real Estate Development Co. Ltd. to pay RMB10102081.10 in principal and interest owed
for the Fuli Center project and asserting a claim for priority compensation with respect to the
construction project payment. In January 2026 the court of first instance ruled that Zhejiang R&F Real
Estate Development Co. Ltd. and Hangzhou Lianfu Real Estate Development Co. Ltd. shall pay Fangda
Construction Technology Company RMB9915000 plus interest and confirmed Fangda Construction Technology
Company's priority right to the construction payment. Neither party appealed and the first-instance
judgment has taken effect. As of the disclosure date of this report the case has entered the enforcement
stage.* In March 2024 Fangda Construction Technology Company filed a lawsuit with the Nanshan District
People's Court of Shenzhen requesting that Shenzhen Roland Sibao Property Development Co. Ltd.
270Annual Report 2025 of China Fangda Group Co. Ltd.
Shenzhen Hanking Group Co. Ltd. and Shenzhen Hairun De Petrochemical Technology Co. Ltd. pay a total
of RMB59126328.21 in principal and interest for construction costs related to the Hanking Finance
Project and the Hanking Times Project. In January 2025 Fangda Construction Technology Company reached a
settlement with all defendants and the Nanshan District People's Court issued a judicial confirmation
order requiring the defendants to pay a total of RMB55418127.73 in principal and interest for the
construction costs with additional personal guarantees provided by their legal representatives Wu
Shaojie and Huang Jianwen. In May 2025 as the defendants failed to make payments as stipulated in the
judicial confirmation order Fangda Company applied to the Nanshan District People's Court for compulsory
enforcement. The parties reached an enforcement settlement in July 2025; however after the defendants
defaulted again following the settlement Fangda Company re-applied for compulsory enforcement in
November 2025 demanding that the defendants pay a total of RMB42490699.70 in outstanding principal and
interest for the Hanking Finance and Hanking Times Projects. As of the date of this report's disclosure
the Nanshan District People's Court of Shenzhen has accepted the enforcement application and the case is
currently under enforcement.
(3) Contingent liabilities and their financial impact arising from providing debt guarantees for
other entities.By December 31 2025 the Company has provided loan guarantees for the following entities:
Name of guaranteed
Guarantee Amount (in RMB10000) Term
entity
Guarantee and
Fangda Property 108000.00 2025.04.02-2040.03.28
mortgage guarantee
Fangda Intelligent
Guarantee 28000.00 2024.03.15-2030.03.14
Manufacturing
Fangda Construction
Guarantee 10500.00 2025.03.19-2026.03.18
Technology
Fangda Construction
Guarantee 4000.00 2025.03.21-2026.03.21
Technology
Fangda Construction
Guarantee 5000.00 2025.06.17-2026.06.16
Technology
Fangda Construction Guarantee 4900.00 2025.05.23-2026.05.18
271Annual Report 2025 of China Fangda Group Co. Ltd.
Name of guaranteed
Guarantee Amount (in RMB10000) Term
entity
Technology
Fangda Construction
Guarantee 29700.00 2024.06.26-2026.06.25
Technology
Fangda Construction
Guarantee 4000.00 2025.06.30-2026.06.17
Technology
Fangda Yunzhu Guarantee 600.00 2025.03.25-2026.03.24
Fangda Zhiyuan Guarantee 1200.00 2025.03.31-2026.03.30
Fangda Zhiyuan Guarantee 4000.00 2025.06.20-2026.06.19
Total 199900.00
Note 1: Contingent liabilities caused by guarantees provided for other entities are all related
guarantees between interested entities in the Company.Notes 2: The Company's property business provides periodic mortgage guarantee for property purchasers.The term of the periodic guarantee lasts from the effectiveness of guarantee contracts to the completion
of mortgage registration and transfer of housing ownership certificates to banks. As of December 31 2025
the Company's outstanding amount for the above-mentioned phased guarantees was RMB4890000.
3. Others
Status of non-revocation of company as at December 31 2025:
Cash deposits as Utilized credit
Guarantee balance
Currency security facilities
(original currency)
(Equivalent in RMB) (Equivalent in RMB)
CNY 780950867.53 31931.14 780950867.53
Hong Kong dollars (HKD) 22259665.45 15000000.00 20105375.03
United States dollars (USD) 5739305.43 1962466.66 38377963.35
Singapore Dollar SGD 18396338.00 100418250.61
AUD 14124550.00 66232839.86
Euro (EUR) 1257254.67 10354120.83
Total 16994397.80 1016439417.21
272Annual Report 2025 of China Fangda Group Co. Ltd.
XVI. Post-balance-sheet Events
1. Profit distribution
On April 3 2026 the sixteenth meeting of the tenth session of the Company's Board of Directors
deliberated and approved the full text and summary of the 2025 Annual Report and the "2025 Profit
Distribution Proposal." The Company will not distribute cash dividends issue bonus shares or convert
capital reserves into share capital for the year 2025.
2. Notes to other issues in post balance sheet period
The Company has no other issues in post balance sheet period that need to be disclosed on April 03
2026 (report date approved by the Board of Directors).
XVII. Other material events
1. Segment information
(1) Recognition basis and accounting policy for segment report
The Group divides its businesses into five reporting segments. The reporting segments are determined
based on financial information required by routine internal management. The Company's management
regularly evaluates the operating results of these reporting segments to decide on the allocation of
resources and to assess their performance.The reporting segments are:
* Curtain wall division: production and sales of curtain wall materials design production and
installation of building curtain walls curtain wall testing and maintenance services;
* Rail transit branch: assembly and processing of subway screen doors screen door detection and
maintenance services;
* Real Estate Segment: Engaging in real estate development and operations property leasing and
property management services on land for which lawful use rights have been obtained.
(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
273Annual Report 2025 of China Fangda Group Co. Ltd.
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
Rail
Item Curtain wall Real estate New energy Others between Total
transport
segments
258248953596770482.185100036.19396434.522995999.629449422.9337730306
Turnover
6.6060047296.44
Including:
external 256994468 596770482. 176038964. 18558764.4 15990168.5 337730306
transaction 6.00 60 94 0 0 6.44
income
Inter-
segment 12544850.6 29449422.9
9061071.10837670.177005831.12
transaction 0 9
income
Including:
major 254818013 586079070. 184943757. 19396434.5 15990168.5 24569535.9 333002003
business 7.18 27 90 7 0 2 2.50
turnover
Operating 242520639 425418439. 79275284.6 16340264.5 292153695
7968831.228267.66
cost 4.27 30 5 7 2.53
Including:
major 239586937 414437641. 54017532.4 16340264.5 285596138
7968831.228267.66
business 2.69 54 2 7 0.96
cost
-
Operation 511878426. 70735133.3 390636076. 32765653.1 106625301
2899.2260234823.8
cost 79 3 52 2 2.84
6
Operating - - -
100616909.11424704.1-73343982.2
profit/(loss 354595284. 284811325. 610486898.
9739777921.168
)461393
688032300977857042.575127725130227209.349382834465811277125754000
Total assets
0.07552.87063.189.9867.75
Total 458704020 548307670. 314042666 117706696 248922225 696777468
4155436.68
liabilities 3.14 17 9.50 1.10 9.19 1.40
(3) Others
* External revenue from principal products and services
Item 2025 2024
Metal production 2549499511.03 3506046473.56
Railroad industry 586079070.27 612264588.95
New energy industry 18558764.40 18259004.01
Real estate 175882686.80 236549368.23
274Annual Report 2025 of China Fangda Group Co. Ltd.
Item 2025 2024
Total 3330020032.50 4373119434.75
* Geographic breakdown of operating revenue
Item 2025 2024
In China 2995104526.33 4027988850.55
Out of China 382198540.11 396235347.16
Total 3377303066.44 4424224197.71
XVIII. Notes to Financial Statements of the Parent
1. Account receivable
(1) Account age
In RMB
Age Closing balance of book value Opening balance of book value
Within 1 year (inclusive) 5278640.77 2857394.06
Over 3 years 359129.89 359129.89
4-5 years 359129.89
Over 5 years 359129.89
Total 5637770.66 3216523.95
(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
563777411916.522585321652331398.288512
bad debt 100.00% 7.31% 100.00% 10.30%
0.66304.363.95605.35
provisio
n is
made by
group
Includin
g:
Combinat
ion 3:
563777411916.522585321652331398.288512
Other 100.00% 7.31% 100.00% 10.30%
0.66304.363.95605.35
business
models
275Annual Report 2025 of China Fangda Group Co. Ltd.
563777411916.522585321652331398.288512
Total 100.00% 7.31% 100.00% 10.30%
0.66304.363.95605.35
Provision for bad debts by combination:
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 5278640.77 52786.41 1.00%
Over 5 years 359129.89 359129.89 100.00%
Total 5637770.66 411916.30
Group recognition basis:
See 11. Financial Tools in Chapter VIII V Important Accounting Policies and Accounting Estimates for
the recognition criteria and instructions for withdrawing bad debt reserves by portfolio
If the provision for bad debts on accounts receivable is being made based on the expected credit loss
general model:
□ Applicable □ Inapplicable
(3) Bad debt provision made returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Opening Closing
Type
balance Written-backProvision Canceled Others balance
or recovered
Portfolio 3.
331398.6080517.70411916.30
Others
Total 331398.60 80517.70 411916.30
(4) Accounts receivable and contract assets with the top-5 ending balances grouped by party owed
In RMB
Closing balance
Percentage of
of provision for
Closing balance total ending
Closing balance Closing balance bad debts on
of accounts balance of
Entity of accounts of contract accounts
receivable and accounts
receivable assets receivable and
contract assets receivable and
impairment of
contract assets
contract assets
No.1 2386098.78 0.00 2386098.78 42.33% 23860.99
No.2 2142225.63 0.00 2142225.63 38.00% 21422.26
No.3 359129.89 0.00 359129.89 6.37% 359129.89
No.4 227409.36 0.00 227409.36 4.03% 2274.09
No.5 168095.71 0.00 168095.71 2.98% 1680.96
Total 5282959.37 0.00 5282959.37 93.71% 408368.19
2. Other receivables
In RMB
Item Closing balance Opening balance
276Annual Report 2025 of China Fangda Group Co. Ltd.
Other receivables 1131454187.78 1622103166.85
Total 1131454187.78 1622103166.85
(1) Other receivables
1) Other receivables are disclosed by nature
In RMB
By nature Closing balance of book value Opening balance of book value
Accounts between related parties
1131408372.961622041266.22
within the scope of consolidation
Others 46277.60 62836.90
Total 1131454650.56 1622104103.12
(2) Account age
In RMB
Age Closing balance of book value Opening balance of book value
Within 1 year (inclusive) 3425432.76 53408271.79
1-2 years 53345434.89 642978380.00
2-3 years 632978380.00 92577980.00
Over 3 years 441705402.91 833139471.33
3-4 years 92577980.00 680897404.79
4-5 years 318667629.82 152242066.54
Over 5 years 30459793.09 0.00
Total 1131454650.56 1622104103.12
(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
Includ
ing:
Provisio
n for
bad 113145 113145 162210 162210
100.00%462.780.00%100.00%936.270.00%
debts by 4650.56 4187.78 4103.12 3166.85
combinat
ion
Includ
ing:
First 46277.6 45814.8 62836.9 61900.6
0.00%462.781.00%0.00%936.271.49%
stage 0 2 0 3
Related 113140 100.00% 0.00 0.00% 113140 162204 100.00% 0.00 0.00% 162204
277Annual Report 2025 of China Fangda Group Co. Ltd.
party 8372.96 8372.96 1266.22 1266.22
funds
within
the
scope of
consolid
ation
113145113145162210162210
Total 100.00% 462.78 0.00% 100.00% 936.27 0.00%
4650.564187.784103.123166.85
Allowance for doubtful accounts by portfolio: Portfolio 1 – Stage 1
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Portfolio 1: First stage 46277.60 462.78 1.00%
Total 46277.60 462.78
Description of the basis for determining the portfolio: Provision for bad debts is made on the basis of
the general model of expected credit losses.Provision for bad debts by 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 the 1131408372.96 0.00 0.00%
scope of consolidation
Total 1131408372.96 0.00
Provision for bad debts based on general model of expected credit losses
In RMB
First stage Second stage Third stage
Expected credit
Expected credit
Bad debt provision Expected credit loss for the entireloss for the entire Total
losses in the next duration (credit
duration (no credit
12 months impairment has
impairment)
occurred)
Balance on
Wednesday January 936.27 936.27
12025
Balance on
Wednesday January
1 2025 in the
current period
Provision -473.49 -473.49
Balance on
Wednesday December 462.78 462.78
312025
Criteria for stage division and provision ratios for bad debts
Changes in book balances with significant changes in the current period
□ Applicable □ Inapplicable
278Annual Report 2025 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
Opening Written- ClosingType
balance Provision back or Write-off Others balance
recovered
Other receivables
and bad debt 936.27 -473.49 462.78
provision
Total 936.27 -473.49 462.78
5) Balance of top 5 other receivables at the end of the period
In RMB
Balance
of bad
debt
Percentage provisio
Entity By nature Closing balance Age
(%) n at the
end of
the
period
Less than 1
3379155.16
Related party year
Shenzhen Fangda Property funds within 12706314.89 1-2 years
82.16%
Development Co. Ltd. the scope of 615478380.00 2-3 years
consolidation 72577980.00 3-4 years
225409345.03 4-5 years
Related party 40639120.00 1-2 years
Fangda (Jiangxi) Property funds within 17500000.00 2-3 years
15.15%
Development Co. Ltd. the scope of 20000000.00 3-4 years
consolidation 93258284.79 4-5 years
Related party
Shihui International funds within Over 5
30459793.092.69%
Holding Co. Ltd. the scope of years
consolidation
Non-related Less than 1
Housing provident fund 23311.00 0.00% 233.11
parties year
Social insurance Non-related Less than 1
20070.950.00%200.71
contributions parties year
Total 1131451754.91 100.00% 433.82
3. Long-term share equity investment
In RMB
Closing balance Opening balance
Item
Remaining book Impairment Book value Remaining book Impairment Book value
279Annual Report 2025 of China Fangda Group Co. Ltd.
value provision value provision
Investment in
1706562530.001706562530.001657062530.001657062530.00
subsidiaries
Total 1706562530.00 1706562530.00 1657062530.00 1657062530.00
(1) Investment in subsidiaries
In RMB
Change (+-) Balanc
Beginnin e of
g impair
balance Decr ment
Invested Opening book of ease Impairm Closing book provis
entity value impairme Increased d ent Others value ion at
nt investment inve provisi the
provisio stme on end of
ns nt the
period
Fangda
Construction 751950000.00 751950000.00
Technology
Fangda Jiangxi
74496600.0074496600.00
New Material
Fangda
198000000.00198000000.00
Property
Shihui
61653.0061653.00
International
Fangda New
99000000.0099000000.00
Energy
Fangda
Investment
98000000.0098000000.00
Holding
Company
Fangda
Intelligent 198000000.00 49500000.00 247500000.00
Manufacturing
Fangda Zhiyuan 237554277.00 237554277.00
Total 1657062530.00 49500000.00 1706562530.00
4. Operational revenue and costs
In RMB
Amount occurred in the current period Occurred in previous period
Item
Income Cost Income Cost
Main business 22995999.62 8267.66 22532419.32 81137.33
Total 22995999.62 8267.66 22532419.32 81137.33
Breakdown of operating revenues and operating costs:
In RMB
Contract Others Total
classification Turnover Operating cost Turnover Operating cost
Business type
280Annual Report 2025 of China Fangda Group Co. Ltd.
Of which: Others 22995999.62 8267.66 22995999.62 8267.66
Total 22995999.62 8267.66 22995999.62 8267.66
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 55758625.66 yuan of which
13202434.52 yuan is expected to be recognized in 2026 and 9830856.80 yuan is expected to be
recognized in 2027 32725334.34 yuan It is expected that revenue will be recognized in 2028 and beyond.
5. Investment income
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Investment income of trading
financial assets during the 176162.22
holding period
Dividends distributed by
25500000.0072929550.62
subsidiaries
Total 25676162.22 72929550.62
XIX. Supplementary Materials
1. Detailed accidental gain/loss
□ Applicable □ Inapplicable
In RMB
Item Amount Notes
Gain/loss of non-current assets -3032277.77
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 7081782.93
policies and in accordance with defined criteria and have a
continuous impact on the Company's profit or loss)
Gains and losses from changes in the fair value of financial
assets and liabilities held by non-financial corporations and
gains and losses from the disposal of financial assets and 1491525.97
liabilities except for effective hedging operations related to
the Company's normal business operations
One-time expenses incurred by the enterprise due to the
discontinuation of related business activities such as -1145361.48
expenditures for employee placement.Gain/loss from change of fair value of investment property
-280731968.67
measured at fair value in follow-up measurement
Other non-business income and expenditures other than the above -17778105.99
281Annual Report 2025 of China Fangda Group Co. Ltd.
Less: Influenced amount of income tax -73720330.38
Impact on minority interests (after tax) -38.58
Total -220394036.05 --
Other gain/loss items satisfying the definition of non-recurring gain/loss account:
□ Applicable □ Inapplicable
The Company has no other gain/loss items satisfying the definition of non-recurring gain/loss account
Circumstance that should be defined as recurrent profit and loss to Explanation Announcement of
Information Disclosure No. 1 - Non-recurring gain/loss
□ Applicable □ Inapplicable
2. Net income on asset ratio and earning per share
Earning per share
Profit of the report Weighted average net
period income/asset ratio Basic earnings per share Diluted Earnings per
(yuan/share) share (yuan/share)
Net profit attributable
to common shareholders -8.75% -0.48 -0.48
of the Company
Net profit attributable
to the common owners of
the PLC after deducting -4.98% -0.27 -0.27
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
None
282
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