China Fangda Group Co. Ltd.
2020 Annual Report
March 2021
Chapter 1 Important Statement Table of Contents and Definitions
The members of the Board and the Company guarantee that the
announcement is free from any false information misleading statement or
material omission and are jointly and severally liable for the information’s
truthfulness accuracy and integrity.Mr. Xiong Jianming the Chairman of Board Mr. Lin Kebin the Chief
Financial Officer and Mr. Wu Bohua the manager of accounting department
declare: the Financial Report carried in this report is authentic and completed.
All the Directors have attended the meeting of the board meeting at which
this report was examined.
Forward-looking statements involved in this report including future plans
do not make any material promise to investors. Investors should pay attention to
investment risks.The Company needs to comply with disclosure requirements of the
Shenzhen Stock Exchange Industry Information Disclosure Guideline No.6 –
Listed Companies Engaged in Decoration Business and disclosure requirements
of the Shenzhen Stock Exchange Industry Information Disclosure Guideline
No.3 – Listed Companies Engaged in Property Development.
The Company has specified market management and production and
operation risks in this report. Please review the potential risks and measures
mentioned in the discussion and analysis of future development in IV. Operation
Discussion and Analysis.
The Company will distribute no cash dividends or bonus shares and has no
reserve capitalization plan.
Table of Contents
Chapter 1 Important Statement Table of Contents and Definitions.........................................................................................................2
Chapter 2 About the Company and Financial Highlights ........................................................................................................................7
Chapter 3 Business Introduction ............................................................................................................................................................ 12
Chapter 4 Operation Discussion and Analysis ....................................................................................................................................... 19
Chapter 5 Significant Events ................................................................................................................................................................. 46
Chapter VI Changes in Share Capital and Shareholders ........................................................................................................................ 61
Chapter VII Preferred Shares ................................................................................................................................................................. 69
VIII. Information about the Company‘s Convertible Bonds .................................................................................................................. 70
Chapter IX Particulars about the Directors Supervisors Senior Management and Employees ............................................................ 71
Chapter X Corporation Governance ...................................................................................................................................................... 78
Chapter XI Information about the Company‘s Securities ...................................................................................................................... 86
Chapter XII Financial Statements .......................................................................................................................................................... 87
Chapter 13 Documents for Reference .................................................................................................................................................. 245
Definitions
Terms
Refers
to
Description
Fangda Group company the Company
Refers
to
China Fangda Group Co. Ltd.
Articles of Association
Refers
to
Articles of Association of China Fangda Group Co. Ltd.
Meeting of shareholders
Refers
to
Meetings of shareholders of China Fangda Group Co. Ltd.
Board of Directors
Refers
to
Board of Directors of China Fangda Group Co. Ltd.
Supervisory Committee
Refers
to
Supervisory Committee of China Fangda Group Co. Ltd.
Banglin Technology
Refers
to
Shenzhen Banglin Technologies Development Co. Ltd.Shilihe Co.Refers
to
Gong Qing Cheng Shi Li He Investment Management Partnership
Enterprise (limited partner)
Shengjiu Co.Refers
to
Shengjiu Investment Ltd.
Fangda Jianke
Refers
to
Shenzhen Fangda Jianke Group Co. Ltd.
Fangda Zhichuang
Refers
to
Fangda Zhichuang Science and Technology Co. Ltd.
Fangda New Material
Refers
to
Fangda New Materials (Jiangxi) Co. Ltd.
Fangda New Energy
Refers
to
Shenzhen Fangda New Energy Co. Ltd.
Fangda Property
Refers
to
Shenzhen Fangda Property Development Co. Ltd.
Chengdu Fangda
Refers
to
Chengda Fangda Construction Technology Co. Ltd.
Dongguan Fangda New Material
Refers
to
Dongguan Fangda New Material Co. Ltd.
Kechuangyuan Software Refers Shenzhen Qianhai Kechuangyuan Software Co. Ltd.
to
Fangda Property Management
Refers
to
Shenzhen Fangda Property Management Co. Ltd.
Fangda Property
Refers
to
Fangda (Jiangxi) Property Development Co. Ltd.
Hongjun Investment Company
Refers
to
Shenzhen Hongjun Investment Co. Ltd.
Fangda Investment Partnership
Refers
to
Shenzhen Fangda Investment Partnership (Limited Partnership)
Lifu Investment
Refers
to
Shenzhen Lifu Investment Co. Ltd
Xunfu Investment
Refers
to
Shenzhen Xunfu Investment Co. Ltd
Jianke Hong Kong
Refers
to
Fangda Jianke Hong Kong Co. Ltd.
Fangda Jianzhi
Refers
to
Shanghai Fangda Jianzhi Technology Co. Ltd.
Fangda Zhijian
Refers
to
Shanghai Fangda Zhijian Technology Co. Ltd
Fangda Cloud Rail
Refers
to
Shenzhen Fangda Cloud Rail Technology Co. Ltd.Jianke Australia
Refers
to
Fangda Australia Pty Ltd
Zhichuang Technology Hong Kong
Refers
to
Fangda Zhichuang Science and Technology (Hong Kong) Co. Ltd.
Shihui International
Refers
to
Shihui International Holding Co. Ltd.
Fangda Southeast Asia
Refers
to
Fangda Southeast Asia Co. Ltd.
Shenyang Fangda
Refers
to
Shenyang Fangda Semi-conductor Lighting Co. Ltd.Shenzhen Woke
Refers
to
Shenzhen Woke Semi-conductor Lighting Co. Ltd.
SZSE
Refers
to
Shenzhen Stock Exchange
Chapter 2 About the Company and Financial Highlights
1. Company profiles
Stock ID Fangda Group Fangda B Stock code 000055 200055
Modified stock ID (if any) None
Stock Exchange Shenzhen Stock Exchange
Chinese name China Fangda Group Co. Ltd.
Chinese abbreviation Fangda Group
English name (if any) CHINA FANGDA GROUP CO. LTD.
English abbreviation (if any) CFGC
Legal representative Xiong Jianming
Registered address
Fangda Technology Building Kejinan 12th Avenue High-tech Zone Hi-tech Park South Zone
Shenzhen PR China.Zip code 518057
Office address
20F Fangda Technology Building Kejinan 12th Avenue High-tech Zone Hi-tech Park South Zone
Shenzhen PR China.Zip code 518057
Website http://www.fangda.com
Email fd@fangda.com
2. Contacts and liaisons
Secretary of the Board Representative of Stock Affairs
PRINTED NAME Xiao Yangjian Guo Linchen
Address
20F Fangda Technology Building Kejinan
12th Avenue High-tech Zone Hi-tech Park
South Zone Shenzhen PR China.
20F Fangda Technology Building Kejinan
12th Avenue High-tech Zone Hi-tech Park
South Zone Shenzhen PR China.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
Press medias of information disclosure
China Securities Journal Security Times Shanghai Securities Daily
Securities Daily Hong Kong Commercial Daily
Website assigned by CSRC to release the online
reports
http://www.cninfo.com.cn
Place for information inquiry Secretarial Office of the Board
4. Registration changes
Organization code None
Changes in main businesses since the
listing of the Company
None
Changes in the controlling shareholders None
5. Other information
Public accountants employed by the Company
Public accountants RSM Thornton (limited liability partnership)
Address
901-22 to 901-26 Foreign Trade Building No.22 Fuchengmenwai Street Xicheng District
Beijing China
Signing accountant names Chen Zhaoxin Zeng Hui Hu Gaosheng
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
2020 2019 Increase/decrease 2018
Turnover (yuan) 2979296410.16 3005749558.66 -0.88% 3048680152.06
Net profit attributable to
shareholders of the listed company
(yuan)
382051466.98 347771182.73 9.86% 2246164571.68
Net profit attributable to the
shareholders of the listed company
and after deducting of
non-recurring gain/loss (RMB)
376968729.62 291449314.27 29.34% 21171063.10
Net cash flow generated by
business operation (RMB)
548709785.90 -5284830.77 10482.73% 387102719.57
Basic earnings per share 0.35 0.31 12.90% 1.91
(yuan/share)
Diluted Earnings per share
(yuan/share)
0.35 0.31 12.90% 1.91
Weighted average net income/asset
ratio
7.26% 6.82% 0.44% 53.17%
End of 2020 End of 2019
Increase/decrease from
the end of last year
End of 2018
Total asset (RMB) 11866857250.39 11369964580.11 4.37% 10658854133.73
Net profit attributable to the
shareholders of the listed company
(RMB)
5380857155.39 5182795079.67 3.82% 5195187621.88
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
Net profit before and after deducting non-re current gains and losses is negative
□ Yes √ No
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.
8. Financial highlights by quarters
In RMB
Q1 Q2 Q3 Q4
Turnover 413826888.79 837781175.63 848436105.17 879252240.57
Net profit attributable to the
shareholders of the listed company
94777419.75 52062464.82 68793891.42 166417690.99
Net profit attributable to the 95563557.35 50729290.59 54966749.35 175709132.33
shareholders of the listed company
and after deducting of
non-recurring gain/loss
Cash flow generated by business
operations net
-339105046.99 202119567.59 316947166.56 368748098.74
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 2020 2019 2018 Notes
Non-current asset disposal gain/loss
(including the write-off part for which assets
impairment provision is made)
-541838.10 -101676.86 -5080792.02
Subsidies accounted into the current income
account (except the government subsidy
closely related to the enterprise‘s business
and based on unified national standard
quota)
12872885.30 5411736.29 5931937.15
Capital using expense charged to
non-financial enterprises and accounted into
the current income account
585760.51 922330.10
Gain from entrusted investment or assets
management
27065331.33
Gain/loss from change of fair value of
transactional financial asset and liabilities
and investment gains from disposal of
transactional and derivative financial assets
and liabilities and sellable financial assets
other than valid period value instruments
related to the Company‘s common
businesses
8759056.18 9236658.20 -1192774.07
Write-back of impairment provision of
receivables and contract assets for which
impairment test is performed individually
0.00 100023.62
Gain/loss from commissioned loans 393485.98 442060.24
Gain/loss from change of fair value of
investment property measured at fair value
19205841.18 42608311.58 2916598485.48
in follow-up measurement
Other non-business income and expenditures
other than the above
-34752456.16 -1108687.74 1675521.71
Other gain/loss items satisfying the
definition of non-recurring gain/loss account
-936467.20
Less: Influenced amount of income tax 778490.70 164700.18 720926531.10
Influenced amount of minority
shareholders‘ equity (after-tax)
75746.32 -248850.00
Total 5082737.36 56321868.46 2224993508.58 --
Explanation statement should be made for accidental gain/loss items defined and accidental gain/loss items defined as regular
gain/loss items according to the Explanation Announcement of Information Disclosure No. 1 - Non-recurring gain/loss mentioned.
□ Applicable √ Inapplicable
No circumstance that should be defined as recurrent profit and loss according to Explanation Announcement of Information
Disclosure No. 1 - Non-recurring gain/loss occurs in the report period.
Chapter 3 Business Introduction
1. Major businesses of the Company during the report period
The Company is headquartered in Nanshan District Shenzhen. The stock was listed on the Shenzhen Stock Exchange on
November 29 1995. Currently six major business subsidiaries of the Company are national high-tech enterprises with modern
production bases in Shanghai Chengdu Nanchang and Dongguan. The Company has developed the smart curtain wall PVDF
aluminum veneer and rail transit screen door system industries in China earlier. Green low-carbon and environmental protection has
always been the Company's original goal of development. Since its establishment 30 years ago the Company has maintained the
same main business pursued excellence in craftsmanship and insisted on technological innovation to consolidate the road of
development. The smart curtain wall and material industry and the rail transit screen door system industry have become industry
benchmarks. Major businesses of the Company during the report period:
1. Smart curtain wall system and material industry:
(1) Main products and purpose
The Company‘s main products include smart energy-saving curtain walls photo-electricity curtain walls LED color-display
curtain walls PVDF aluminum plate graphene aluminum plate and Nano aluminum plate materials. Building curtain wall is mainly
used for high-rise buildings (such as R&D center of enterprise headquarters business center) large-span public buildings (such as
airport station cultural center convention and Exhibition Center) building daylighting roofs (such as schools hospitals and
maintenance centers) special-shaped buildings (such as spherical and bell shaped buildings) structures etc. with peripheral
protection decoration and energy saving functions.
(2) Macroeconomic situation of the industry the impact of changes in the industrial policy environment on the Company
and the countermeasures taken by the Company
2021 is the first year of the "14th Five-Year Plan" and the "Outline of the Fourteenth Five-Year Plan for National Economic
and Social Development and the 2035 Vision Goals" clearly promotes the construction of traditional infrastructure and new
infrastructure. In recent years China‘s supply-side structural reform has continued to deepen and the national regional coordinated
development strategy has been further promoted. Development plans such as new urbanization coordinated development of
Beijing-Tianjin-Hebei ―One Belt and One Road‖ construction Guangdong-Hong Kong-Macao Greater Bay Area and Shenzhen
Pilot Demonstration Zone have attracted worldwide attention and have brought unprecedented development opportunities to the
development of curtain wall systems and material industries. Shenzhen is a pioneer in opening up and a "new hub" "outlet" and
"weathervane" connecting the domestic and international dual cycles. It has outstanding advantages special status and important
roles in building a new development pattern. In 2021 Shenzhen will vigorously promote the construction of ―dual zones‖ in the
Guangdong-Hong Kong-Macao Greater Bay Area and Shenzhen Pilot Demonstration Zone and implement comprehensive reform
pilots in Shenzhen. At the same time Shenzhen is also an important curtain wall market for the Company. The Company will
continue to promote high-quality development and face multiple In the new era of strategic overlap expand and extend market
coverage use lean quality to consolidate the existing market position explore new market fertile ground continue to increase R&D
and innovation actively practice the concept of green development enhance core competitiveness and maintain the leading position
in the industry.
(3) Main business modes specific risks and changes;
The projects implemented by the Company are mainly through the bidding method to obtain contract orders. Project design
material procurement production and processing and the construction and installation and after-sales service model are based on the
contract orders. The main risk of this mode is that it takes a long period of time from the completion of the order to the completion of
the project and it is highly dependent on raw materials and labor costs. It is greatly affected by the national industrial policy raw
material prices and labor market fluctuations. Different contract orders have different requirements imposing high requirements on
technology and production management. The main business model of the Company's curtain wall engineering is the entire industry
chain from design process material procurement production and processing to construction and after-sales service. The operation
mode remained unchanged in the report period.
(4) Market competition pattern cyclical characteristics of the Company's industry and the Company's market position
The sudden outbreak of the COVID-19 epidemic in 2020 has had an important impact on the development of the construction
curtain wall industry. As the pressure of market competition continues to increase leading companies in the industry continue to
expand their business scale highly concentrated talents and resources and strengthen their differentiated core competitiveness. At the
same time the total number of employees in the curtain wall industry is declining and the contradictions in human resources are
more prominent. It also puts forward more urgent needs for intelligent manufacturing and management tool applications. There is no
obvious periodicity in the curtain wall industry.The Company has been engaged in smart curtain wall related business since its inception. Over the past more than 30 years the
Company has undertaken hundreds of large projects and received the highest award in the industry China Construction Luban Award
and Zhan Tianyou Civil Engineering Award for many times. The Company has also received nearly 100 provincial and above awards.The Company has been in the ―China's top 100 building curtain wall industry‖ for many years and has already had strong brand
advantages and competitiveness in the industry. The Company has a strong technology lead in the industry. The Company also took
part in the preparation of more than 10 national or industry standards including the Public Construction Energy Saving Design
Standard making 9 records among Chinese enterprises. The Company has a Class A qualification for building curtain wall
engineering contracting and class A qualification for building curtain wall engineering design. It is the highest level for curtain wall
design and construction companies in China.
(5) Industry qualification types and validity period
During the reporting period the Company's relevant qualifications have not changed significantly and the validity period has
not expired. For the detailed information about the qualifications obtained please refer to the Chapter V XIX Explanation of Other
Major Matters of this report.
(6) Quality control system implementation standards control measures and overall evaluation
Quality control system: The Company implements a comprehensive quality management system and has established a quality
management system in accordance with ISO9001 from the aspects of design procurement storage production testing delivery
installation and after-sales service and conduct regular reviews.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.
Control measures: The Company has established complete and effective quality control measures and quality management
bodies and strictly implements various quality management and control measures.Overall evaluation: The Company's products and project quality are in full compliance with the relevant requirements of the
relevant national standards and standards and maintain proper operation providing customers with stable and reliable quality
products and engineering.
(7) Major project quality problem during the reporting period
None.
2. Rail transport equipment business:
The "Fourteenth Five-Year Plan for National Economic and Social Development and Outline of Long-Term Goals for 2035"
emphasizes the in-depth implementation of the strategy of making the country a strong nation and promotes the innovative
development of advanced rail transit equipment and other industries. Since 1999 the Company has taken the lead in developing rail
transit screen door technology in China. The Company's main products in this sector are rail transport screen door systems and
technical maintenance services which are a necessary part of modern subway system. It is installed at the edge of the subway
platform and separates trains from the platform. The business model is to order-based production obtain contract orders through
bidding (divided into open bidding and bid invitation) design process purchase raw materials factory production construction and
installation and technical maintenance services according to the orders. The Company has built a complete industry chain that
integrates R&D designing manufacturing engineering and technical services. The business model has not changed during the
reporting period. The Company has established a quality management system from design procurement production installation and
after-sales service in accordance with ISO9001 and has passed ISO9001 ISO14000 and international railway IRIS system
certification. The Company's rail transit shielding door system adopts the original technology of the Company and has the product
with the independent intellectual property right. The Company has compiled the first industry standard of the rail transit station
shielding door in our country and compiled the national standard of evaluation method of energy consumption and emission index of
urban rail transit (GB/T 37420-2019). Fangda Zhichuang Technology Co. Ltd. is engaged in the subway transportation shield door
system industry as a state-level high-tech enterprise.
As a "pioneer" in the domestic rail transit screen door system industry after more than 20 years of development the Company
has successively constructed subway screens in Beijing Shanghai Tianjin Guangzhou Shenzhen Nanjing Shenyang Wuhan Xi'an
Fuzhou Nanchang and other cities. The door system has a coverage rate of more than 70% in the domestic cities that have opened
subway operations and the market share steadily ranks first. It is a leading enterprise in China's rail transit screen door industry. In
addition the Company's products have been continuously promoted to overseas markets and many projects have been won in
countries and regions along the ―Belt and Road‖ such as Singapore India Malaysia Thailand Hong Kong and Taiwan. At present
the Fangda screen door system has been applied in the rail transit of 42 cities around the world. More than ten million people use the
Fangda screen door system every day. The Company has become the world's leading manufacturer and supplier of screen door
systems in the rail transit equipment market.
3. New energy industry: Solar PV power generation industry is largely supported by the Chinese government. The Company is
one of the first companies that possess intellectual property rights in the designing production and integration of solar PV systems. In
2020 the grid-connected Jiangxi Pingxiang Xuanfeng Town Solar Photovoltaic Power Station Nanchang Jiangxi Isuzu Automobile
Co. Ltd. Parking Shade Photovoltaic Power Station and Dongguan Songshan Lake Photovoltaic Power Station all operated smoothly
and the power generation efficiency was in line with the power plan design efficiency. In the future it will still bring long-term
stable income and profits to the Company.
4. Real estate
The Company currently has completed: Fang Dacheng ("Fang Dacheng" the same below) project in Nanshan District Shenzhen;
one project under development: the Nanchang Phoenix Island Fangda Center project; Two: Fangda Bangshen Industrial Park project
in Baoan District Shenzhen and urban renewal project in the area along the Dakang River in Henggang Shenzhen.
For a detailed discussion of the Company’s business please refer to “III. Analysis of Core Competencies” in this section
of the report and Chapter VI “Operation Discussion and Analysis”.II. Major assets change
1. Major assets change
Main assets Major change
Equity assets None
Fixed assets None
Intangible assets None
Construction in process None
Investment real estate None
Deferred income tax assets
Deferred income tax assets decreased by 45.64% year-on-year mainly because the
Shenzhen Fangda Plaza project reached the land value-added tax settlement conditions
during the current period. As the matters involved in the liquidation are planned to be
included in the final settlement of corporate income tax in 2020 the deferred income tax
assets corresponding to the accrued and unpaid taxes are transferred back.Notes receivable
Notes receivable decreased by 32.1% on a year-on-year basis which was mainly due to
the decrease in collection by means of notes at the end of the period
2. Major foreign assets
□ Applicable √ Inapplicable
3 Core Competitiveness Analysis
(1) Smart curtain wall system and material
1. Expertise and brand competitiveness
As the world‘s top smart curtain wall system supplier and service provider the Company has independently developed and
mastered core technologies. The average annual R&D and innovation investment is about 5% of sales revenue. It has been selected as
one of the ―Top 500 Chinese Listed Companies Innovation Index‖ twice and participated in the compilation of more than 10 national
or industry standards such as the "Design Standards for Energy Conservation of Public Buildings" and created 9 new records for
Chinese enterprises. 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. In the same industry across the country the Company is the earliest to establish R&D institutions such as corporate
postdoctoral workstations engineering technology centers and curtain wall research and design institutes. Founded 30 years ago it
has undertaken thousands of major curtain wall system projects in more than 100 countries and regions. For example during the
reporting period it has undertaken the Shenzhen Special Economic Zone 40th Anniversary Celebration Conference venue-Shenzhen
Qianhai International Conference Center‘s smart curtain wall project 2018 General Secretary Xi Jinping visited Shenzhen Museum
of Contemporary Art and Urban Planning Exhibition Hall and Vanke Qianhai Corporate Mansion‘s curtain wall system the curtain
wall system of the Xiamen International Conference Center the venue of the 2017 Xiamen BRICS Summit the 2014 APEC Summit
the curtain wall system of the 2017 ―One Belt One Road‖ Beijing Yanqi Lake International Conference Capital the main venue of
the International Cooperation Summit Forum has won wide acclaim from all walks of life. The industry and target market of the
Company have high requirements for the performance of participating enterprises which has formed certain thresholds. Especially in
the super high-rise buildings large public buildings and special-shaped external maintenance structures the Company has rich
experience in project implementation. It has established business contacts and cooperation with many large real estate development
companies. The Company has a high reputation and strong market competitiveness.The Company has created many firsts in the industry and is one of the high-end preferred brands in the Chinese smart curtain
wall system materials industry. So far four subsidiaries including Shenzhen Fangda Construction Technology Group Co. Ltd.
Dongguan Fangda New Materials Co. Ltd. Chengdu Fangda Construction Technology Co. Ltd. Shanghai Fangda Zhijian
Technology Co. Ltd. Fangda New Materials (Jiangxi) Co. Ltd. have been recognized as hi-tech companies. The "FANGDA"
trademark was recognized as a well-known trademark in China and the "FANGDA" brand was awarded "International Reputation
Brand" "Shenzhen Time-honored Brand" and "Shenzhen Famous Brand".
2. Location advantage
2021 is the first year of the "14th Five-Year Plan". Shenzhen will vigorously promote the construction of the Guangdong-Hong
Kong-Macao Greater Bay Area and the Shenzhen Pilot Demonstration Zone "Dual Zone" implement comprehensive reform pilots in
Shenzhen and the implementation of the plan will directly stimulate the construction of large public buildings and There is a large
market demand for building curtain walls. Since its establishment in Shekou Shenzhen in 1991 the Company has been based in
Shenzhen for 30 years. It has been rated as "Guangdong Province Contract-abiding and Credit-Reliable Enterprise Company"
"Guangdong Province Top 500 Manufacturing Enterprises" "Shenzhen Top 500 Enterprises" and Shenzhen Special Zone 40
Anniversary "50 Most Potential Listed Companies". The Company will continue to take advantage of the industry's regional
leadership grasp the policy dividend and follow the national development strategy to promote the Company's rapid development.
3. Focusing on the high-end market to edge out competitors
In the fierce market competition the Company accurately positions the market in the field of smart energy-saving curtain wall
systems with high requirements for technology service and management and focuses its resources on high-end curtain wall projects.Many of the curtain wall projects undertaken won the national "Luban Award" "Zhan Tianyou Civil Engineering Award" "National
Quality Engineering Award" "China Construction Engineering Decoration Award" "White Magnolia" Award and "Customer
Satisfaction Project" awards and Won the title of ―Top Ten Most Competitive in China's Curtain Wall Industry‖. The Company has
built a leading brand and created a clear edge in the high-end curtain wall market.
4. Well-developed industry base landscape
In order for the Company to better serve the market and meet the growing demand for orders after years of accumulation and
continuous investment in hardware facilities the Company's curtain wall system and material industry has been established
nationwide with Shenzhen as its headquarters and Shanghai Chengdu Nanchang and Dongguan as production bases among which
Dongguan Songshan Lake Base and Nanchang Base are one of the largest and most modern curtain wall system and material
production bases in China and even the world. The Company's production base continues to increase digital and intelligent
construction introduces intelligent equipment realizes robot intelligent welding automatic glue and uses Internet technology to
track the Company's products and continuously improve efficiency. The layout of the production base provides an important
guarantee for improving the market share and comprehensive competitiveness.The Company's curtain wall system and material industry integrates R&D design production project management and
construction with complete industrial supporting facilities and has strong comprehensive strength in technology cost advantages
quality and service.
5. Talent
The Company always adheres to the "people-oriented" talent concept actively introduces and trains all kinds of professional
technology and management talents and is committed to building an efficient management and operation team. After years of
development the Company has an experienced senior management team and middle-level managers with strong execution ability as
well as a complete talent training system and talent reserve. This year the Company continuously optimized the effective incentive
and assessment system implemented quantitative management built a platform for industry university research integration with
colleges and universities and scientific research institutions promoted the cooperation between colleges and enterprises and the
combination of industry and university promoted the effective docking of talent cultivation and industrial demand and ensured that
the Company's scientific research strength in the field of smart curtain wall was at the leading level in the industry.
(2) Rail transport equipment business
1. Expertise competitiveness
Through continued independent innovation the Company has developed the global leading metro screen door system with full
intellectual property right and broken the monopoly of overseas competitors. The Company has also compiled the Rail Transport
Station Screen Door Standard which is the first of its kind in China. The standard was implemented as a national standard on March
1 2007. As the first standard in the industry in China the standard has played a key role in guiding the development of China‘s rail
transport screen door industry and enabled the Company a dominant lead in the industry. In 2019 following the editor-in-chief of the
Urban Rail Transit Platform Screen Door the Company once again participated in the preparation of the Urban Rail Transit Energy
Consumption and Emission Index Evaluation Method (GB / T 37420-2019) officially implemented it on December 1 2019
highlighting the Company's technical strength and industry leader status in the field of urban rail transit. Fangda Zhichuang
Technology Co. Ltd. a subsidiary of the Company engaged in metro platform screen door system industry of rail transit is a
state-level high-tech enterprise. During the reporting period it was awarded the "scientific and technological innovation contribution
award of equipment industry in socialist first demonstration zone".
2. Brand competitiveness
Rail transit platform screen door is related to people's daily transportation so the requirements for product safety technology
quality and service ability are particularly high. In 1999 the Company began to take the lead in developing rail transit platform
screen door technology in China accumulated rich experience had the first mover advantage and gradually grew into an excellent
brand enterprise in the industry. Up to now the Company has undertaken the construction projects of track screen doors in 42 cities
and regions at home and abroad including Shenzhen Shanghai Guangzhou Wuhan Hong Kong Singapore Kuala Lumpur
Malaysia Noida India and Bangkok Thailand. The Fangda subway screen door system has grasped a leading market share and
established incomparable brand influence thanks to its patents standard and maintenance services. The Company has become a
leading railway screen door supplier in the world.
3. Industry chain advantage
As China's first enterprise to enter the subway platform screen door the Company has an overall solution industry chain of rail
transit platform screen door integrating R & D design manufacturing engineering construction and technical services. With
years of accumulated reputation leading technical services and independent intellectual property products the Company has won the
favor of the domestic and foreign rail transit platform screen door market and the subway platform screen door of the Company has
been widely used in China. The coverage rate of the cities with metro operation has reached more than 70%. With many domestic
metro platform screen door systems entering the maintenance period the Company actively expands the industrial chain and takes
the lead in developing Metro maintenance business in China. The Company has a natural advantage in this high-end service industry.Our screen door system are independently developed by us thus enabling us to provide prompt overall effective and standard
maintenance services for our customers without other third parties. With more and more metro operation the performance
contribution of the business will continue to improve.
(3) New energy industry
The Company's new energy industry mainly includes the development of new energy saving technologies such as solar
photovoltaic application and photovoltaic building integration. With more than ten years' experience in developing solar energy PV
power generating curtain wall technology the Company is the earliest company that masters the intelligent property right in the
designing production and integration of solar energy PV curtain wall systems and is a earlier in the application of PV curtain wall
technology.
Distributed solar power PV power generation is closely related to the Company‘s existing businesses. Most distributed solar
power PV systems are closely related to construction. Moreover the Company has more than 10 years' experience in electrical
product integration. The Company also has more than 30 years‘ experience in construction management and has the level-1
construction curtain wall engineering qualification and electrical installation engineering qualification.
(4) Real Estate
1. The Company is located in the core area of Guangdong Hong Kong and Macao focusing on the development of urban
renewal projects in Shenzhen. Benefiting from the dividend of Shenzhen's rapid economic development it is expected that the
Company's real estate business will contribute profits to the Company in the future.
2. Although the Company is a later comer in the industry the Shenzhen Fangda Town project was quickly recognized by the
market and the sales rate was faster. The Company's subordinate enterprises have been rated as "Shenzhen real estate development
industry brand value enterprise" by Shenzhen Real Estate Industry Association for three consecutive years and "Shenzhen real estate
development industry development potential enterprise" for two consecutive years.
Chapter 4 Operation Discussion and Analysis
1. Summary
In 2020 it was a very unusual year. The sudden COVID-19 has been raging all over the world and the social and economic
sectors have been greatly affected which has brought great challenges to the Company's operation. In the face of challenges the
Company has always insisted on the prevention and control of epidemic situation on one hand and the resumption of work and
production on the other hand vigorously explored the market paid close attention to sales cost control collection and other aspects
of production and operation and continued to enhance its profitability. On February 9 the Company started to resume work and
production earlier. The Company focuses on the main business of smart curtain wall and rail transit platform screen door and always
adheres to the drive of technological innovation. Under the leadership of the board of directors and through the efforts of all
employees the Company has achieved its business objectives. During the reporting period the Company achieved operating income
of RMB2979296400 a year-on-year decrease of 0.88%; and the net profit attributable to owners of the parent company was
RMB382051500 a year-on-year increase of 9.86%. The Company's net profit after deducting non recurring profits and losses was
RMB376968700 an increase of 29.34% over the same period of last year. As of the end of the reporting period the Company's
order reserve was RMB4926291100 (excluding presales of real estate) an increase of 8.58% from the end of the previous year
which was 1.65 of the Company's operating revenue in 2020. Sufficient order reserve provides a strong guarantee for the sustainable
development of the Company.
1. Smart curtain wall system and material industry
(1) Make further use of the Company's advantages to grab orders
In 2020 it is the 40th anniversary of the establishment of Shenzhen Special Economic Zone. It is the year for the construction
of Guangdong Hong Kong Macau and Shenzhen to spread out and push forward the construction of socialism with Chinese
characteristics in an all-round way. Despite the big test of epidemic situation in the era node of "double zone" construction with the
spirit of "pioneering" "pioneering" and "dry" style the Company firmly seized the opportunity with the product quality technical
strength and brand influence of core competitiveness made unconventional efforts to open up the market and made use of the
advantages of Shenzhen the core area of Guangdong Hong Kong and Macao Bay District to win numerous orders and also made
unremitting efforts to expand overseas markets.
During the reporting period the Company has successively won or signed the bid for the curtain wall project of the South
District of Shenzhen Qianhai Trading Plaza II Xili campus of Shenzhen University (phase II) Shenzhen Huarun Sungang Vientiane
Plaza project Guangzhou Vanke Expo site 15 Zhuhai Hengqin Renhe International Innovation Center of traditional Chinese
medicine Zhuhai Litang jinliwan business center phase II Panyu nantianmingyuan Dongguan Changan oppo R & D center
Center project Shantou Tianhe Mingmen Haoting Shanghai Qibao Vanke ecological business district commercial office project
Shanghai xihongqiao business district xujingzhong 29-02 (a) plot Shanghai Vanke Longhua project North District Nanjing Science
and technology development Island South primary school Nanchang Xinli Times Square 2 building Kunming Jinmao Yiting
business center Haikou Huacai haikouwan square 12 building of China Merchants magic cube in Chengdu phase I of Central
Business District of Sanjiangkou CBD in Yibin City Sichuan Province Baofeng hospital and maintenance hospital project in
Ningxia gmhbaproject in Jilang Australia Rosella project in Melbourne Australia wills st project in Melbourne Australia Victoria
place project in Australia Shanta Forum in Bangladesh A large number of smart curtain wall systems and materials projects such as
tower project Sam project in Thailand and flash bid section of Saudi metro were awarded and newly signed orders totaling 2.989
billion yuan an increase of 38.66% over the same period of last year including 1.694 billion yuan in Guangdong Hong Kong and
Macao accounting for 56.68% and 130 million yuan in overseas projects accounting for 4.34%.
2. In the reporting period the curtain wall system and materials industry realized operating income of RMB2141476100 an
increase of 2.50% over the same period of the previous year; the net profit was RMB157754700 an increase of 51.52%; with a
gross margin of 17.15% up 2 percentages over the same period of last year; By the end of the reporting period the order reserve of
curtain wall system and material industry of the Company was RMB3321131200 an increase of 22.40% over the same period of
last year which was 1.55 times of the operating revenue of curtain wall system and material industry in 2020.
(2) Reasonable layout of production bases and comprehensive improvement of production capacity
In order to better serve the market meet the growing demand for orders and convert orders into operating revenue as soon as
possible the Company's new Shanghai Songjiang East China production base was put into use during the reporting period. After the
completion of the East China base the Company has formed a national industrial layout with Shenzhen as its headquarters Shanghai
as its base for the East China market Nanchang as its base for the central market Dongguan Songshan Lake as its base for the South
China and overseas markets and Chengdu as its base for the western market. In response to China's strategy of accelerating the
formation of a new development pattern with domestic circulation as the main body and domestic and international double
circulation promoting each other the Company has sought to improve the Company's market share and comprehensive
competitiveness to provide a strong guarantee.
(3) Promote intelligent manufacturing and enhance the Company's competitive advantage
During the reporting period guided by the concept of high-quality development driven by technological innovation and
enabled by science and technology the Company actively used advanced technology to improve the quality and efficiency of
production and construction. In the curtain wall project construction of Shenzhen Qianhai International Conference Center the venue
of Shenzhen Special Economic Zone's 40th anniversary celebration conference the Company uses 3D scanning robot BIM model
and other advanced technical means to achieve efficient and high-quality scientific construction which interprets the great
craftsman's spirit of "products are excellent" and ensures the successful completion of the conference venue construction.
In 2020 the Company will comprehensively and deeply carry out the construction of intelligent factory optimize the
production mode production process and production process and carry out intelligent upgrading and transformation of production
links to realize intelligent production. Welding robot glue robot automatic cutting machine and other intelligent production
equipment have been applied to production and manufacturing. The second phase of MES system has been put into use realizing the
whole process information management from planning manufacturing warehousing to delivery promoting the Company to develop
in the direction of "information technology service + intelligent manufacturing" accelerating the upgrading from "manufacturing" to
"intelligent manufacturing" and improving the production efficiency.
2. Rail transport screen door business
(1) Actively explore the market and promote the "double circulation" of domestic and international markets
In recent years the state has successively issued a series of development plans such as "three year action plan for enhancing
the core competitiveness of manufacturing industry (2018-2020)" "outline for building a transportation power" and "13th five year
plan for the development of modern comprehensive transportation system" focusing on the development of advanced manufacturing
industries such as urban rail transit equipment. As an important equipment of rail transit the Company's platform screen door system
is one of the key equipment supported by the state for localization. The Company will seize new opportunities rely on technological
innovation continuously develop domestic and foreign markets and show more strength of "made in China" on the world stage.
During the reporting period the Company received orders for professional technical maintenance services for platform screen
door system of Singapore Metro Jurong line project Hong Kong International Airport P4 terminal station Shenzhen metro line 16
Xi'an Metro Line 5 phase II Nanning rail transit line 5 phase I (Guokai Avenue Jinqiao passenger station) Fuzhou rail transit line 5
Shenzhen Metro line 1 2 5 11 Nanchang Rail Transit Line 2 etc. By the end of the report period the Company's order reserve of
rail transit platform screen door equipment industry has reached RMB1605159900 which is 2.46 times of the industry's operating
revenue in 2020.
(2) Good growth momentum of revenue and profit and consolidation of leading position in the industry
During the reporting period the Company completed the construction of 14 rail transit lines including golden line of Bangkok
phase III of Shenzhen Metro Line 6 line 10 and line 4 Hangzhou metro line 16 north section of Shijiazhuang Metro Line 3 phase I
East extension of Nanning Metro Line 4 and line 2 Zhengzhou Metro line 4 Taiyuan Metro Line 2 Nanchang Metro Line 3 phase II
of Fuzhou Metro Line 1 and Xi'an Metro Line 5 The platform screen door system has been successfully put into operation with 205
stations and 303.3km line mileage which is the highest in the industry consolidating the Company's global leading position in the
rail transit platform screen door equipment industry. At present Fangda platform screen door system has been applied in the rail
transit of 42 cities in the world of which the coverage rate of metro operation in domestic cities has reached more than 70% and
more than 20 million people use Fangda platform screen door system every day thus continuing to maintain the world's leading
market share. During the reporting period the industry realized operating income of RMB651249400 and realized net profit of
RMB75448600 with the net profit increasing by 20.32% compared with the same period of last year.
(3) Maintenance technology services continue to improve
As the world's largest supplier of rail transit platform screen door system the Company takes the lead in developing "intelligent
maintenance" system by using big data AI and 5g technology in the same industry. With high quality and efficient professional
maintenance service the Company has won wide praise in the urban rail transit industry and the Company's technical maintenance
service revenue continues to rise. During the reporting period the revenue of technical maintenance services was RMB33995400
an increase of 36.82% over the same period of last year. The Company is a leading company that can provide the entire industry
chain technology and product services for subway screen doors. The added value of technical services is high. In the future this
business will become an important performance growth point for the Company. The Company will also strive to become a metro
screen door technology maintenance service expert. During the reporting period the Company was repeatedly rated as "advanced
outsourcing maintenance unit" and "excellent cooperative outsourcing unit" by the users of metro platform screen doors. The
recognition of the industry partners affirms the Company's advanced technology and product quality in the field of urban rail transit
shielding door equipment and reflects Fangda's brand influence and maintenance professional service in China's rail transit shielding
door industry.
3. New energy industry
During the reporting period the Company continued to implement the refined management of new energy photovoltaic power
stations. The three solar photovoltaic power stations that have been connected to the grid maintained efficient stable and safe
operation with a net profit of 10.8386 million yuan an increase of 35.94% over the same period of last year. The operation efficiency
of the three power stations met the design efficiency of the power station system. During the reporting period the Company's solar
photovoltaic power plants produced clean energy equivalent to reducing carbon dioxide emissions by about 20000 tons.
4. Real estate
(1) Changes in the macroeconomic situation and industry policy environment the status of industry development and
policy situation in the city where the Company's main projects
At the beginning of 2020 affected by the epidemic the national real estate industry was greatly affected and the national
turnover fell. In 2020 China's economy began to recover and the transaction scale of commercial residential buildings in 100 cities
increased slightly showing a trend of "rising falling and stable". In the second half of the year the market picked up but the
subsequent increment was insufficient.The main project locations of the Company are Shenzhen and Nanchang. Shenzhen is located in the core area of Guangdong
Hong Kong and Macao. The Company will focus on the development of urban renewal projects in Shenzhen.Nanchang real estate is still under the control policy residential transactions are stable as a whole the supply of commercial
and office buildings is large and the price and quantity fall together. The municipal government plans to introduce relevant policies
on commercial destocking.Under the influence of macroeconomic and real estate industry regulation the sales volume and gross profit rate of the
Company's real estate sector will decrease but it is expected to contribute to the Company's profits.
(2) The Company's main business model business project format real estate sales in the city where the main project is
located market position and competitive advantages of listed companies main risks and countermeasures
The Company's real estate business mainly adopts the business model of self-development partial sales and partial
self-supporting. At present the Company mainly develops sells and rents office commercial and apartment products. The Company
has established a professional team to operate and manage the Company's commercial and property.The Fangda Town project developed by the Company is located in the north of Huaqiaocheng Nanshan District Shenzhen city.
As of the end of the report period the sales rate of the project is 92.80%. See "(V) sales of main projects in this section for details of
the sales situation. The Fangda Town center project located in Honggutan New District Nanchang City Jiangxi Province is a
commercial complex integrating office apartment shopping leisure and entertainment. The project focuses on sales and rental The
project will be sold in advance on December 28 2019. As of the end of the report period the sales rate of the project is 13.56%.
Although the Company is a later comer in the industry the Fangda Town project was quickly recognized by the market and the
sales rate was faster. As the Company's wholly-owned subsidiary Fangda Real Estate Co. Ltd. has been rated as "Shenzhen real
estate development industry brand value enterprise" by Shenzhen Real Estate Industry Association for three consecutive years and
"Shenzhen real estate development industry development potential enterprise" for two consecutive years. Nanchang's commercial
office buildings have a large inventory and the volume and price are showing a downward trend. The location of the Company's
Fangda Center project has obvious location advantages and the products have good market expectations.
(3) New land reserve projects
Parcel or
project name
Land location Purpose
Land area
(m2)
Building area
(m2)
Obtaining
method
Interests
percentage
Total land
price (ten
thousand
yuan)
Equity
consideration
(ten thousand
yuan)
None
Total land reserve
Project/region name Floor area (10000 m2) Total building area (10000 m2)
Remaining building area
(10000 m2)
Fangda Town 3.53 21.24 0
Nanchang Fangda Center 1.66 6.64 0
Total 5.19 27.88 0
(4) Main production development status
City/reg
ion
Item
Land
location
Project
form
Interests
percenta
ge
Starting
time
Develop
ment
progress
Complet
ion rate
Land
area
(m2)
Plannin
g
construc
tion area
(m2)
Area
complet
ed in
this
phase
(m2)
Total
area
complet
ed in
this
phase
(m2)
Estimat
ed total
investm
ent (in
RMB10
000)
Accumu
lated
total
investm
ent (in
RMB10
000)
Shenzhe
n
Nansha
n
District
Fangda
Town
No.2
Longzh
u 4th
Road
Office
commer
cial
complex
100.00
%
May
1st
2014
100%
100.00
%
35397.
60
212400
.00
0
217763
.69
258500 283600
Honggu
tan New
Fangda
Center
No.1516
Ganjian
Comme
rcial
100.00
%
1 May
2018
100%
100.00
%
16608.
55
66432.
61
65376.
94
65376.
94
67000
66992.
35
District
Nancha
ng
g North
Avenue
Fangda
Center
(5) Main production sales status
City/regi
on
Item
Land
location
Project
form
Interests
percenta
ge
Building
area
Sellable
area (m2)
Cumulati
ve
pre-sale
(sales)
area (m2)
Pre-sale
(sales)
area in
this
period
(m2)
Amount
of
pre-sale
(sales) in
the
current
period
(RMB10
000)
Cumulati
ve
settleme
nt area
(m2)
Settleme
nt area in
the
current
period
(m2)
Settleme
nt
amount
in this
period
(RMB10
000)
Shenzhe
n
Nanshan
District
Fangda
Town
No.2
Longzhu
4th Road
Office
commerc
ial
complex
100.00% 212400
93086.2
5
86380.8
5
901.43 5223.08
86380.8
5
901.43 5223.08
Honggut
an New
District
Nanchan
g
Fangda
Center
No.1516
Ganjiang
North
Avenue
Fangda
Center
Commer
cial
100.00%
65376.9
4
32354.4
4
4385.76 4385.76 5853.22 0 0 0
(6) Main production lease status
Item Land location Project form
Interests
percentage
Leasable area
(m2)
Cumulative
leased area (m2)
Average lease
ratio
Shenzhen Fangda
Town
Shenzhen
Nanshan District
Office
commercial
complex
100.00% 72517.71 41180.31 56.79%
Shenzhen Fangda
Town
Shenzhen
Nanshan District
Commercial shop 100.00% 22775.52 22652.59 99.46%
Jiangxi Nanchang
Science and
Technology Park
Nanchang
Jiangxi Province
Plant and office
building
100.00% 11037.20 11037.20 100.00%
Fangda Building
Shenzhen
Nanshan District
Office building 100.00% 17792.47 12454.13 70.00%
(7) First-level development of land
□ Applicable √ Inapplicable
(8) Financing source
Financing source
Ending financing
balance
(RMB10000)
Financing cost
range / average
financing cost
Term structure (RMB10000)
Within 1 year 1-2 years 2-3 years Over 3 years
Bank loan 116179.78
During the same
period the
benchmark interest
rate of the loan was
adjusted at the
agreed rate to
5.715%
8929.78 8750.00 13500.00 85000.00
Total 116179.78 8929.78 8750.00 13500.00 85000.00
(9) Development strategy and operation plan in the next year
Under the continuous regulation of real estate policy it is expected that the overall transaction scale of the real estate market
will drop slightly in 2021 the differentiation of different cities will continue and the transactions of the first tier and some second
tier markets are expected to keep increasing. The Company is still optimistic about the future development of real estate in core cities
and core areas. In the future the Company will continue to expand the brand effect deepen the product types deepen the local
market and effectively improve the Company's operating performance.
In 2021 the main task of the Company's real estate sector is to realize the sales of Shenzhen Fangda Town project and focus on
promoting the sales and leasing of Nanchang Fangda Town center project.
In 2020 the Company's fangdabangshen project and Henggang Dakang project will be affected by the epidemic situation and
policies and the application of special regulations and project approval will be delayed to a certain extent. In 2021 the Company will
actively promote the application of projects according to the latest local policies.
(10) Bank mortgage loan guarantee provided for commercial housing purchasers
√ Applicable □ Inapplicable
As of June 30 2020 the balance of the Company's guarantee for commercial housing offenders due to bank mortgage loans was
RMB176 million.
(11) Co-investment between Directors supervisors and senior management and listed companies
□ Applicable √ Inapplicable
5. Innovation
The Company adheres to the development strategy of focusing on technological innovation to strengthen the Company's
competitiveness. During the reporting period the Company applied for 75 new patents and 46 new authorized patents and
independently developed 29 new products. We have actively promoted the introduction and application of advanced technologies
such as intelligent manufacturing robotics Internet of things AI VR + Ar and big data and achieved preliminary results. The
construction of intelligent factories has been accelerated and intelligent production facilities such as automatic welding and
automatic gluing have been put into use. During the reporting period the amount of R&D investment was 141.6119 million yuan
accounting for 4.75% of the sales revenue an increase of 3.41% over the same period of last year providing an important guarantee
for the Company to achieve high-quality growth.
In 2020 management innovation remained the focus of the Company's work. We should scientifically formulate production
plans implement the "three reductions" of reducing inventory cost and accounts receivable stock and improve business efficiency.We should comprehensively carry out the "comparison learning catching up and Surpassing" activities to stimulate internal potential.We should hold the "Fangda craftsman" skill competition and "Fangda lecture" training To continuously improve the theoretical
knowledge and operation skills of employees and create a team of skilled talents with reasonable structure exquisite technology and
excellent style. In 2020 five employees including Yang Xingzhong Chen Guowei Liu Licheng Liang ruke and Wu Tianjie were
awarded the "top 100 craftsmen in Shenzhen"; Wenlin Xu Qiang and Yu Zhenjian were awarded the titles of "top 10 scientific and
technological talents" "top 10 outstanding young curtain wall designers" and "top 10 star craftsmen" by Shenzhen Decoration
Industry Association.
6. Awards
During the reporting period the Company was awarded the title of ―Advanced Private Enterprise in Fighting New Coronary
Pneumonia Epidemic‖ by the All-China Federation of Industry and Commerce ―Private Enterprise with Outstanding Contribution to
Fighting the New Coronary Pneumonia Epidemic in Guangdong Province‖ ―The Most Beautiful Enterprise in Action Against the
Epidemic‖ and the 2020 China Enterprise Charity 500 Advanced private enterprise in Jiangxi Province‘s "Thousands of Enterprises
Helping Thousands of Villages" Targeted Poverty Alleviation Action has been listed in the "Top 500 A-share Listed Companies
Innovation Index in China" for two consecutive years has been ranked among the "Top 500 Manufacturing Industries in Guangdong
Province" and won the "Shenzhen Time-honored Brand" "The 40th Anniversary of the Shenzhen Special Economic Zone "The 50
Most Potential Listed Companies" was awarded the "Outstanding Enterprise for Social Responsibility" for three consecutive years.The "FANGDA" brand was awarded the "International Reputation Brand" and won the honorary title of "Shenzhen Famous Brand"
for six consecutive times. Chairman Xiong Jianming won the honors of "2020 China Charity Entrepreneur" "2020 ?Golden Quality‘
Outstanding Entrepreneur Award" and "Present to the Special Zone 40 Years to Salute 40 Brands".
During the reporting period the Shenzhen Overseas Chinese Town Building Shenzhen Hanjing Financial Center and Wuxi
Wanda City‘s Phase I Wanda Mall Exterior Decoration Project Bid Section 2 and Shenzhen Energy Building which were
constructed by the subsidiary Fangda Construction Technology were awarded the ―Architectural Engineering Decoration‖ by the
China Building Decoration Association. Shenzhen Hanjing Financial Center Shenzhen International Convention and Exhibition
Center (Phase I) and Shenzhen Overseas Chinese Town Building won the ―Guangdong Province Excellent Architectural Decoration
Engineering Award‖; the Shenzhen Overseas Chinese Town Building undertaken by Shenzhen won the ―15th AL-Survey Best Love
the curtain wall project"; the curtain wall project of the Shenzhen International Convention and Exhibition Center won the third prize
of the "First Architectural Decoration BIM Competition"; the Shenzhen International Convention and Exhibition Center (Phase 1)
Shenzhen Hanjing Financial Center Shenzhen Hanjing Times Building Shenzhen Overseas Chinese Town The building Shenzhen
Shuibei International Jewelry Center Shenzhen Huide Building and Shenzhen Shenye Zhongcheng respectively won the "Shenzhen
Golden Peng Award for Decoration in 2019"; the "Unit Type Porcelain Curtain Wall" with independent intellectual property rights
was awarded by the China Building Decoration Association "Building Decoration Industry Science and Technology Award" this
patented technology won the "Top Ten Science and Technology Innovation Achievement Award" of Shenzhen Decoration Industry.
During the reporting period the subsidiary Fangda Zhichuang Technology won the "Shenzhen Industry Leaders Top 100
Enterprises" the "Socialist Pilot Demonstration Zone Equipment Industry Technology Innovation Contribution Award" "2020 Ganpo
Helps Akto's Poverty Alleviation Model Group" 2020 ( The 13th) Rail Transit and Urban International Summit "2019 Excellent
Supplier of Screen Doors" "Excellent Equipment Supplier" issued by Shenzhen Metro Group Co. Ltd. "Advanced Outsourcing
Maintenance Unit" by Xiamen Rail Transit Group Co. Ltd. Tianjin Rail Transit Operation Group Co. Ltd. "Excellent Cooperative
Outsourcing Unit" Hohhot Metro Line 1 Construction Management Co. Ltd. "Excellent Supplier" Wuhan Wuhan Railway Travel
Service Media Co. Ltd. Customer Service Maintenance Branch "Excellent Outsourcing Company" "Maintenance Project" and the
"Recognition of Outsourcing Maintenance Work" issued by the Maintenance Center of Nanchang Rail Transit Group Co. Ltd.Operation Branch.Subsidiary Jiangxi Land was awarded the "Model Group of Compassion for the Prevention and Control of New Coronary
Pneumonia in 2020" and Fangda Real Estate was awarded the title of "Brand Value Enterprise in Shenzhen Real Estate Development
Industry" for three consecutive years.
2. Main business analysis
1. Summary
For details see Management Discussion and Analysis – 1. Profile
2. Income and costs
(1) Turnover composition
In RMB
2020 2019
YOY change (%)
Amount
Proportion in
operating costs (%)
Amount
Proportion in
operating costs (%)
Total turnover 2979296410.16 100% 3005749558.66 100% -0.88%
Industry
Metal production 2141476129.47 71.88% 2196425708.75 73.07% -2.50%
Railroad industry 651249442.29 21.86% 460906724.26 15.33% 41.30%
New energy industry 19978873.86 0.67% 20103218.63 0.67% -0.62%
Real estate 151222473.25 5.08% 307563025.40 10.23% -50.83%
Others 15369491.29 0.52% 20750881.62 0.69% -25.93%
Product
Curtain wall system
and materials
2141476129.47 71.88% 2196425708.75 73.07% -2.50%
Subway screen door
and service
651249442.29 21.86% 460906724.26 15.33% 41.30%
PV power generation
products
19978873.86 0.67% 20103218.63 0.67% -0.62%
Real estate sales 151222473.25 5.08% 307563025.40 10.23% -50.83%
Others 15369491.29 0.52% 20750881.62 0.69% -25.93%
District
In China 2825857732.62 94.85% 2824371016.83 93.97% 0.05%
Out of China 153438677.54 5.15% 181378541.83 6.03% -15.40%
(2) Industries products or districts that take more than 10% of the Company’s business turnover or profit
√ Applicable □ Inapplicable
In RMB
Turnover Operating cost Gross margin Year-on-year Year-on-year Year-on-year
change in
operating revenue
change in
operating costs
change in gross
margin
Industry
Metal production 2141476129.47 1774196596.41 17.15% -2.50% -4.80% 2.00%
Real estate 151222473.25 114818966.26 24.07% -50.83% 346.95% -91.05%
Railroad industry 651249442.29 511339468.47 21.48% 41.30% 48.71% -3.92%
Product
Curtain wall
system and
materials
2141476129.47 1774196596.41 17.15% -2.50% -4.80% 2.00%
Real estate sales 151222473.25 114818966.26 24.07% -50.83% 346.95% -91.05%
Metro screen
door
651249442.29 511339468.47 21.48% 41.30% 48.71% -3.92%
District
In China 2825857732.62 2303733820.91 18.48% 0.05% 13.15% -9.43%
Main business statistics adjusted in the recent one year with the statistics criteria adjusted in the report period
□ Applicable √ Inapplicable
In RMB
Turnover Operating cost Gross margin
Year-on-year
change in
operating revenue
Year-on-year
change in
operating costs
Year-on-year
change in gross
margin
Industry
Metal production 2141476129.47 1774196596.41 17.15% -2.50% -4.80% 2.00%
Product
Curtain wall
system and
materials
2141476129.47 1774196596.41 17.15% -2.50% -4.80% 2.00%
District
In China 2035536957.95 1710029904.88 15.99% -3.21% -5.29% 1.85%
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
materials
2141476129.47 1774196596.41 17.15%
Whether the Company runs business through the Internet
□ Yes √ No
Whether the Company runs overseas projects
√ Yes □ No
No. Location Number of overseas
projects
Total amount of overseas project
contracts (RMB10000)
1 Australia 8 14390.34
2 Southeast Asia 1 4870.37
Total 9 19260.71
(3) The physical sales revenue is high the labor service revenue
□ Yes √ No
(4) Performance of signed major sales contracts in the report period
√ Applicable □ Inapplicable
In RMB
Project amount
Cumulative recognized output
value
Amount of unfinished part
Unfinished project 6343113784.88 3195264742.88 3147849042.00
Major unfinished project
√ Applicable □ Inapplicable
In RMB
Item Project amount
Construction
period
Completion
percentage
Income
recognized in
this period
Cumulative
recognized
income
Payment
collection
Balance of
accounts
receivable
Tencent Digital
Building
curtain wall
project
314399189.26
September 4
2018 –
November 20
2019(The
construction
period agreed in
the construction
contract is
different from
the actual
construction
situation. The
customer has
made
corresponding
adjustments to
58.14% 131330574.65 182799146.56 134229918.10 39994441.07
the construction
period according
to the actual
situation. The
current project is
progressing
smoothly).In RMB
Accumulative
occurred costs
Accumulative
recognized gross
margin
Estimated loss Settled amount
Balance of unpaid
amount of finished
project
Finished but not
settled project
3476427151.59 824584471.14 0.00 3500243552.24 800768070.49
Any major outstanding unsettled projects during the reporting perio.
□ Applicable √ Inapplicable
(5) Operation cost composition
Industry
In RMB
Industry Item
2020 2019
YOY change (%)
Amount
Proportion in
operating costs
(%)
Amount
Proportion in
operating costs
(%)
Metal production Raw materials 1123365829.74 63.32% 1233265964.58 66.18% -2.86%
Metal production
Installation and
engineering costs
445959180.45 25.14% 422121605.36 22.65% 2.49%
Metal production Labor cost 100484793.92 5.66% 106412147.98 5.71% -0.05%
Railroad industry Raw materials 318518796.97 62.29% 233885738.50 68.02% -5.73%
Railroad industry
Installation and
engineering costs
75861403.42 14.84% 40119904.40 11.67% 3.17%
Railroad industry Labor cost 32435591.19 6.34% 37872672.06 11.01% -4.67%
Real estate
Construction and
installation cost
64064455.04 55.80% 37414096.74 -80.47% 136.27%
Real estate Land cost 2998466.20 2.61% -164158729.89 353.07% -350.46%
Real estate Loan interest 33180.45 0.03% 3308860.53 -7.12% 7.15%
Real estate Labor cost 12855369.02 11.20% 14043313.15 -30.20% 41.40%
Notes
In addition to the above costs other costs are mainly energy costs such as water electricity and rent.Main business cost
In RMB
Cost composition Business type
2020 2019
YOY
change
(%)
Amount
Proportion in
operating costs
(%)
Amount
Proportion in
operating costs
(%)
Raw materials
Curtain wall
system and
materials
1123365829.74 63.32% 1233265964.58 66.18% -2.86%
Installation and
engineering costs
Curtain wall
system and
materials
445959180.45 25.14% 422121605.36 22.65% 2.49%
Labor cost
Curtain wall
system and
materials
100484793.92 5.66% 106412147.98 5.71% -0.05%
(6) Change to the consolidation scope in the report period
√ Yes □ No
In this period the Company set up a company directly controlled and 3 subsidiaries indirectly controlled. The Company
directly controlled is Shenzhen Fangda Investment Partnership (Limited Partnership) and the 3 companies controlled indirectly are:
Shenzhen Lifu Investment Co. Ltd. Shenzhen Xunfu Investment Co. Ltd. and Fangda Jianke Hong Kong Co. Ltd. added 4
companies to the consolidated statements for this period.
(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) 449060999.47
Proportion of sales to top 5 customers in the annual sales 15.07%
Percentage of sales of related parties in top 5 customers in
the annual sales
0.00%
Information of the Company's top 5 customers
No. Customer Sales (RMB) Percentage in the annual sales
1 No.1 120486765.73 4.04%
2 No.2 90066693.35 3.02%
3 No.3 88048505.68 2.96%
4 No.4 81894414.24 2.75%
5 No.5 68564620.47 2.30%
Total -- 449060999.47 15.07%
Other information about major customers
□ Applicable √ Inapplicable
Main suppliers
Purchase amount of top 5 suppliers (RMB) 544883166.90
Proportion of purchase amount of top 5 suppliers in the
total annual purchase amount
21.18%
Percentage of purchasing amount of related parties in top
5 customers in the annual purchasing amount
0.00%
Information of the Company‘s top 5 suppliers
No. Supplier Purchase amount (RMB) Percentage in the annual purchase amount
1 No.1 155480661.68 6.04%
2 No.2 138903997.24 5.40%
3 No.3 87543049.51 3.40%
4 No.4 86476124.00 3.36%
5 No.5 76479334.47 2.97%
Total -- 544883166.90 21.18%
Other information about major suppliers
□ Applicable √ Inapplicable
3. Expenses
In RMB
2020 2019
YOY change
(%)
Notes
Sales expense 39303536.85 57584186.20 -31.75%
This is mainly due to the decrease in real estate
sales the corresponding decrease in labor and
sales agency fees and the implementation of
the new revenue standard to classify the
transportation expenses belonging to the
performance cost into the operating cost.
Administrative expense 141769402.74 170443795.50 -16.82%
Financial expenses 87013598.41 82608834.38 5.33%
R&D cost 141611939.34 59754971.20 136.99%
Mainly due to the increase in R & D personnel
and investment in R & D this year
Taxes and surcharges -222323473.74 61963170.98 -458.80% See remarks for details
Remarks:
This year the amount of taxes and surcharges changed a lot mainly because the subsidiary Fangda Real Estate received the
liquidation notice of land value-added tax from the tax bureau in December 2020. Fangda Real Estate calculated the land value-added
tax of the Fangda Town project according to the relevant laws and regulations of land value-added tax and liquidation methods and
offset the land value-added tax of RMB250 million withdrawn in previous years. As of the reporting date Fangda Real Estate has
completed the liquidation declaration and payment of land value-added tax. At present the tax bureau is in the process of auditing
and the final amount of tax payable for land value-added tax liquidation is subject to the examination and approval result of the tax
bureau.The reasons for the difference between the withholding land value-added tax and the actual liquidation declaration and payment
of Fangda Real Estate are as follows:
1. The actual settlement cost of the project increased. During the reporting period Fangda Real Estate completed the settlement
or dispute check of various engineering costs of Fangda Town project and the final settlement increased by 6% over the original
estimated cost increasing about RMB111 million.
2. The deductible cost of VAT is adjusted and increased according to the scope of tax liquidation. Fangda Real Estate hired a
professional tax agent firm to audit the land value-added tax settlement audited the project cost according to the scope of tax
settlement adjusted the cost sharing of self-supporting and sales parts and issued the land value-added tax settlement audit report.The above two factors make the comprehensive tax negative rate of land value-added tax paid by liquidation declaration lower
than that of original provision.
4. R&D investment
√ Applicable □ Inapplicable
The Company adheres to the development strategy of focusing on technological innovation to strengthen the Company's
competitiveness. During the reporting period the Company applied for 75 new patents and 46 new authorized patents and
independently developed 29 new products. We have actively promoted the introduction and application of advanced technologies
such as intelligent manufacturing robotics Internet of things AI VR + Ar and big data and achieved preliminary results. The
construction of intelligent factories has been accelerated and intelligent production facilities such as automatic welding and
automatic gluing have been put into use. During the reporting period the amount of R&D investment was 141.6119 million yuan
accounting for 4.75% of the sales revenue an increase of 3.41% over the same period of last year providing an important guarantee
for the Company to achieve high-quality growth.
R&D investment
2020 2019 Change
R&D staff number 565 503 12.33%
R&D staff percentage 25.17% 21.00% 4.17%
R&D investment amount
(RMB)
141611939.34 136943143.23 3.41%
Investment percentage in
operation turnover
4.75% 4.56% 0.19%
Capitalization of R&D
investment amount (RMB)
0.00 0.00 0.00%
Percentage of capitalization of
R&D investment in the R&D
investment
0.00% 0.00% 0.00%
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 2020 2019 YOY change (%)
Sub-total of cash inflow from
business operations
3557072996.63 2745391880.62 29.57%
Sub-total of cash outflow from
business operations
3008363210.73 2750676711.39 9.37%
Cash flow generated by
business operations net
548709785.90 -5284830.77 10482.73%
Sub-total of cash inflow
generated from investment
9143834240.33 7100600589.19 28.78%
Subtotal of cash outflows 9018647958.83 7555258305.31 19.37%
Cash flow generated by
investment activities net
125186281.50 -454657716.12 127.53%
Subtotal of cash inflow from
financing activities
2748060091.27 1094836280.53 151.00%
Subtotal of cash outflow from
financing activities
3121218820.25 866537570.34 260.19%
Net cash flow generated by
financing activities
-373158728.98 228298710.19 -263.45%
Net increase in cash and cash
equivalents
298982484.49 -230920987.78 229.47%
Explanation of major changes in related data from the same period last year
√ Applicable □ Inapplicable
During the reporting period the net cash flow from operating activities of the Company increased by 10482.73% compared with that
of last year mainly due to the Company's real estate business providing mortgage guarantee for commercial housing purchasers.
After the house property certificate and mortgage registration procedures are completed in this period the restrictions are removed
and the real estate sales proceeds are collected. The net cash flow from investment activities increased by 127.53% compared with
that of last year mainly due to the withdrawal of mortgage guarantee in this period At the end of the previous period the balance of
financial investment construction in progress and investment in real estate and other buildings decreased and the net cash flow from
financing activities decreased by 263.45% compared with last year mainly due to the decrease in the net income and expenditure of
bank loans in the current period and the payment of B-share repurchase funds.
Explanation of major difference between the cash flow generated by operating activities and the net profit in the year
√ Applicable □ Inapplicable
During the reporting period the difference between the net cash flow generated by the Company's business activities and the net
profit of this year is mainly due to the release of the limitation of the phased guarantee deposit of the real estate industry for the
commercial housing purchasers.
3. Non-core business analysis
√ Applicable □ Inapplicable
In RMB
Amount Profit percentage Reason Whether continuous
Investment income 1274767.24 0.27% No
Gain/loss caused by
changes in fair
value
19221299.32 4.12%
Due to adjustment of fair value of
investment real estate
No
Assets impairment
loss
52970037.82 11.35%
It mainly refers to the provision for
impairment of contract assets
No
Non-operating
revenue
522504.72 0.11% No
Non-business
expenses
35564536.75 7.62%
Mainly litigation liquidated damages and
donation expenses
No
Credit impairment
loss
29820678.51 6.39%
Mainly bad debt provision corresponding
to accounts receivable
No
IV. Assets and Liabilities
1. Major changes in assets composition
The Company implemented new income standard or new lease standard for the first time since 2020 and adjust and implemented
relevant items of financial statements at the beginning of the year
Applicable
In RMB
End of 2020 Beginning of 2020 Change (% ) Notes
Amount Proportion
in total
assets
Amount Proportion
in total
assets
Monetary
capital
1459840020.
10
12.30% 1209811978.9
5
10.64% 1.66%
Account 616195129.4 5.19% 462694993.85 4.07% 1.12%
receivable 0
Inventory 837831790.8
8
7.06% 733711143.46 6.45% 0.61%
Investment real
estate
5634648416.
52
47.48% 5522391984.1
1
48.57% -1.09%
Long-term
share equity
investment
55902377.95 0.47% 57222240.83 0.50% -0.03%
Fixed assets 483161673.3
8
4.07% 477332830.92 4.20% -0.13%
Construction in
process
168626803.0
1
1.42% 129988982.86 1.14% 0.28%
Short-term
loans
1048250327.
62
8.83% 724618197.34 6.37% 2.46%
Long-term
loans
1099411462.
35
9.26% 546501491.56 4.81% 4.45% This is mainly due to the
borrowing in the new
growth period of the
current period
Non-current
liabilities due
in 1 year
103359833.5
7
0.87% 922346563.72 8.11% -7.24% Mainly due to the
repayment of loans in the
current period
Contract assets 1425040223.
27
12.01% 1297743546.7
3
11.41% 0.60%
2. Assets and liabilities measured at fair value
√ Applicable □ Inapplicable
In RMB
Item
Opening
amount
Gain/loss
caused by
changes in
fair value
Accumulative
changes in
fair value
accounting
into the
income
account
Impairment
provided in
the period
Amount
purchased in
the period
Amount sold
in the period
Other
change
Closing
amount
Financial
assets
1.
Transactional
financial
assets
10330062.18
4051015.0
5
(excluding
derivative
financial
assets)
2. Derivative
financial
assets
6974448.2
2
4. Investment
in other
equity tools
20660181.44 -3031873.85
-17783543.6
1
17628307.
59
Subtotal 30990243.62 -3031873.85
-17783543.6
1
28653770.
86
Investment
real estate
5306116360
.12
19205841.1
8
11675404.61
57690444.5
5
5504673.99
250783476
.54
56282914
48.40
Receivable
financing
2954029.00
10727129.
28
Other
non-current
financial
assets
5009728.02 15458.14
5025186.1
6
Total
5345070360
.76
16189425.4
7
-6108139.00
57690444.5
5
5504673.99
250783476
.54
56726975
34.70
Financial
liabilities
96767.62 915234.93
Other change
Other changes of investment real estate were RMB250783476.54 mainly due to the completion acceptance and planning
acceptance of Jiangxi Nanchang Fenghuangzhou Fangda Center project in this period which started to be measured by fair value
and the investment real estate under construction measured by cost was RMB245953338.54 and was converted into investment real
estate measured by fair value; at the end of the reporting period the investment real estate was measured according to the fair value
assessed by professional asset appraisal institutions.Major changes in the assets measurement property of the Company in the report period
□ Yes √ No
3. Right restriction of assets at the end of the period
Item Book value on December 31 2020
(RMB)
Reason
Monetary capital 435587632.71 Margin pledge and judicial frozen deposit
etc.
Account receivable 38906851.06 Loan by pledge
Inventory 103973925.13 Credit Mortgage Mortgage Loan
Investment real estate 2820277340.71 Loan by pledge
Fixed assets 63229493.11 Loan by pledge
Construction in process 44368937.04 Loan by pledge
Intangible assets 19429756.30 Loan by pledge
100% stake in Fangda Property
Development held by the
Company
200000000.00 Loan by pledge
Total 3725773936.06
5. Investment
1. General situation
□ Applicable √ Inapplicable
2. Major equity investment in the report period
□ Applicable √ Inapplicable
3. Major non-equity investment in the report period
□ Applicable √ Inapplicable
4. Financial assets investment
(1) Securities investment
□ Applicable √ Inapplicable
The Company made no investment in securities in the report period
(2) Derivative investment
√ Applicable □ Inapplicable
In RMB10000
Derivati
ve
investm
ent
operator
name
Relation
ship
Related
transacti
on
Type
Initial
amount
Start
date
End date
Initial
investm
ent
amount
Amount
in this
period
Amount
sold in
this
period
Impairm
ent
provisio
n (if
any)
Closing
investm
ent
amount
Proporti
on of
closing
investm
ent
amount
in the
closing
Actua
l
gain/l
oss in
the
report
period
net
assets in
the
report
period
Shangha
i Futures
Exchang
e
No No
Shanghai
aluminu
m
Februar
y 6
2020
Thursda
y
Decemb
er 31
2020
22803.4
7
14691.3
8
8112.09 1.51%
653.0
9
Banks No No
Forward
foreign
exchange
2166
2
August
2019
Thursda
y
Decemb
er 31
2020
2166
11055.9
8
7418.95 5803.03 1.08% 26.97
Total 2166 -- -- 2166
33859.4
5
22110.3
3
13915.1
2
2.59%
680.0
6
Capital source Self-owned fund
Lawsuit involved None
Disclosure date of derivative
investment approval by the Board of
Directors
16 April 2020
Disclosure date of derivative
investment approval by the
shareholders‘ meeting
None
Risk analysis and control measures
for the derivative holding in the report
period (including without limitation
market liquidity credit operation and
legal risks)
The Company's aluminum futures hedging and foreign exchange derivatives trading
business is the derivatives investment business. The Company has established and
implemented the Administrative Measures for the Derivatives Investment Business the
Internal Control and Risk Management System for Commodity Futures Hedging Business
and the approval authority business management risk management information disclosure
and file management of the derivatives trading business etc. in order to effectively control
the risk of the Company‘s derivatives holdings.
Changes in the market price or fair
value of the derivative in the report
period the analysis of the derivative‘s
fair value should disclose the method
used and related assumptions and
parameters.
Fair value of derivatives are measured at open prices in the open market
Material changes in the accounting
policies and rules related to the
derivative in the report period
None
compared to last period
Opinions of independent directors on
the Company‘s derivative investment
and risk controlling
None
5. Use of raised capital
□ Applicable √ Inapplicable
The Company used no raised capital in the report period.VI. Major assets and equity sales
1. Major assets sales
□ Applicable √ Inapplicable
The Company sold no assets in the report period.
2. Major equity sales
√ Applicable □ Inapplicable
Counter
part
Stock
sold
Disposa
l day
Price (in
RMB10
000)
The
equity
contribu
ted by
the
equity
to the
listed
compan
y from
the
beginni
ng of
the
current
period
to the
selling
date (in
ten
thousan
d yuan)
Impacts
Proporti
on of
net
profit
contribu
ted by
listed
Compan
ies to
equity
investm
ents as a
percenta
ge of
total net
profits
Equity
sales
pricing
principl
e
Related
transacti
on
Relation
ship
with the
counter
party
Whether
the
equity
involve
d has
been
complet
ely
transferr
ed
Whether
it is
implem
ented
accordin
g to
schedul
e if it is
not
implem
ented
accordin
g to
plan it
should
explain
the
reasons
and the
measure
s the
Compan
y has
Date of
disclosu
re
Index
for
informat
ion
disclosu
re
taken
Gong
Qing
Cheng
Yingfa
Investm
ent
Partners
hip
Enterpri
se
5.71%
equity
of
Fangda
Zhichua
ng
Technol
ogy Co.Ltd. a
wholly-
owned
subsidia
ry of the
original
compan
y
Monday
August
17
2020
2661.6
7
454.84
It has no
significa
nt
impact
on the
Compan
y's daily
producti
on and
operatio
n and
has no
impact
on the
Compan
y's
current
net
profit
(accordi
ng to
the
relevant
provisio
ns of the
accounti
ng
standard
s the
parent
compan
y
disposes
the
long-ter
m
equity
investm
ent in
the
subsidia
ry
without
0.00%
It is
calculat
ed
accordin
g to the
price
determi
ned in
the asset
appraisa
l report
issued
by the
asset
appraisa
l
instituti
on
No None Yes
It is
complet
ed
Wednes
day
June 24
2020
Announ
cement
on
Equity
Transfer
of
Wholly
Owned
Subsidia
ry on
http://w
ww.cnin
fo.com.cn on
June 24
2020
losing
the
control
right. In
the
consolid
ated
financia
l
stateme
nts the
differen
ce
between
the
disposal
price
and the
share of
net
assets is
included
in the
capital
reserve.VII. Analysis of major joint stock companies
√ Applicable □ Inapplicable
Major subsidiaries and joint stock companies affecting more than 10% of the Company‘s net profit
In RMB
Company Type
Main
business
Registered
capital
Total assets Net assets Turnover
Operation
profit
Net profit
Fangda
Jianke
Subsidiaries
Curtain wall
system and
materials
500000000.
00
346613172
5.88
119661718
5.40
196264207
4.95
181085382.
82
162465293.
74
Fangda
Property
Subsidiaries Real estate
200000000.
00
595789559
3.88
245737272
0.02
97137398.9
8
134253555.
30
78655282.5
0
Fangda
Zhichuang
Subsidiaries
Subway
screen door
and service
105000000.
00
776900841.
65
245400952.
91
649888076.
25
37019757.5
1
28983457.8
3
Kechuangyua Subsidiaries Subway 5000000.00 65447789.8 52395803.0 50882662.9 49086686.0 43280923.7
n screen door
and service
5 7 4 6 1
Acquisition and disposal of subsidiaries in the report period
√ Applicable □ Inapplicable
Company
Acquisition and disposal of subsidiaries in
the report period
Impacts on overall production operation
and performance
Shenzhen Fangda Investment Partnership
(Limited Partnership)
Newly set None
Shenzhen Lifu Investment Co. Ltd Newly set None
Shenzhen Xunfu Investment Co. Ltd Newly set None
Fangda Jianke Hong Kong Co. Ltd. Newly set None
Major joint-stock companies
VIII. Structural entities controlled by the Company
□ Applicable √ Inapplicable
IX. Future Prospect
(1) Competition map and development trned
1. Smart curtain wall and material system industry
In recent years with the rapid growth of China's economy and the acceleration of urbanization China's real estate and
construction industry continue to grow and the high-end curtain wall and material industry has shown great development potential.In the first year of the fourteenth five year plan the State takes promoting new infrastructure construction as an important part of
expanding investment space and building a new development pattern. New urbanization one belt one road construction and the
construction of Guangdong Hong Kong and Macau will become the important driving force and precious opportunity for the future
development of high-end curtain wall system and material industry.
2. Rail transport screen door business
According to the statistics of China Urban Rail Transit Association as of December 31 2020 a total of 45 cities in mainland
China have opened 7978.19 km of urban rail transit lines. In 2020 a total of 1241.99 km of new urban rail transit lines will be added
setting a new record. During the 13th Five Year Plan period the total length of new urban rail transit lines in mainland China reached
4360 km with an average annual length of 872 km. In the past five years the length of newly added urban rail transit lines exceeds
the total length of urban rail transit lines before the 13th five year plan. According to the latest forecast of "China's urban rail transit
market development report 2020" it is estimated that 40 urban rail transit lines in Shanghai Chongqing Shenzhen Xiamen Nanning
Ningbo Jinan and Wuxi will start construction from 2021 to 2022 with a total mileage of 3381.94 km 1377 stations and a total
investment of 1992.824 billion yuan. China's urban rail transit market still maintains a large-scale construction Situation.
3. New energy industry
China's photovoltaic market will enter the next stage of rapid development under the guidance of carbon neutral target. It is
predicted that China's new installed capacity will be 55-65gw in 2021 and the domestic average annual new installed capacity will
be 70-90gw in the 14th five year plan. The development of large domestic power station bases will become a trend and parity
projects (or non subsidy projects) will continue to be the main force of grid connected projects in the future. While promoting China's
energy structure transformation economic transformation and high-quality development it will also play an active leading role in the
world's low-carbon transformation. At the same time China's photovoltaic industry is also facing new energy distribution and storage
and complex external environment And so on.
4. Real estate
In 2021 the pace of development of the national real estate market will slow down. Under the background of new urbanization
key resources such as population and land will accelerate to gather in urban agglomerations and central cities. Regional
differentiation will bring new development opportunities for Guangdong Hong Kong and Macao Great Bay district. The top-level
design of Guangdong Hong Kong and Macao Great Bay District has been implemented. There are many central support policies
mature industrial development strong population attraction and strong demand in real estate market. In addition the overall regional
market has continued to adjust at a low level in recent years and the market demand has been partially suppressed. Under the
background of the continuous emergence of regional coordinated development the market is booming The recovery momentum is
strong.
(2) Company development strategy and business plan
In 2021 the 30th anniversary of the establishment of the Company standing at a new starting point the Company will continue
to focus on the management theme of "high-quality development" strive to improve the development quality and product
competitiveness of the enterprise accurately position the marketing strategy make full use of the brand advantage of haofangda
seize the opportunity of "new infrastructure" and focus on the core areas and regions of Guangdong Hong Kong and Macao
Yangtze River Delta Chengdu and Chongqing Home market strive for more high-quality orders. By means of acquisition and
industrial merger and acquisition we can improve and extend the industrial chain broaden the business scope and industrial scale
expand and strengthen the main business and enhance the core competitiveness of the Company.
At the same time we will make full use of AI 5g big data robots and other information and intelligent technologies to help the
Company's technological progress continue to increase innovation and carry out in-depth and comprehensive construction of
intelligent factories. Speed up the completion of the final sales of Fangda Town office building in Shenzhen and the sales and rental
of Nanchang Fangda Town center continue to do a good job in the business investment and operation of Fangda Town build a
regional business benchmark and continuously improve the business revenue of Fangda Town. Through the open and inclusive
enterprise culture we should practice the employment mechanism of "coming in staying and using flexibly" optimize the salary
incentive and assessment system improve the channels for employees' growth and promotion strengthen the construction of talent
echelon and the accumulation of human resources and ensure the adequate supply of talents. The Company will further improve the
process system stimulate the vitality of the organization improve the operation efficiency and profitability of the enterprise and
realize the sustainable and effective development of the enterprise through process reengineering and quantitative management.
(3) Capital demand and source for projects in progress
To realize the business target in 2021 the Company will develop suitable financial and capital plans accelerate the collection of
accounts receivable sales payment from sales of Fangda Town expand financing channels and use share issuance bank loans and
other financing products to meet the demand for capital.
(4) Risks and solutions
1. Risks and Countermeasures of macroeconomic uncertainty and policy changes
The global economy is always faced with many uncertainties. In addition emergencies such as the new coronavirus epidemic
may also bring unpredictable risks to the overall economy. The main business sectors of the Company are closely related to the
macro-economy and industry policies and are greatly affected by the overall macro-economic development. If China's economy
develops slowly or fluctuates periodically in the future the reduction of fixed asset investment will affect the demand of public
building curtain wall industry and rail transit equipment industry which will have an adverse impact on the Company's future
profitability. In view of the above risks the Company will pay close attention to the changes of macro-economy and policy situation
at home and abroad timely adjust the Company's business strategy and further enhance its market competitiveness operation and
management ability so as to improve its anti risk ability.
2. Market risks and measures
As the overall designing and engineering quality continues improving in the domestic construction curtain wall industry curtain
wall products will become increasingly standard intensifying the market competition. In addition the market concentration of first-
and second-tier cities will increase and regional competition will become more intense. The Company will continue to adopt a
prudent management policy refined management and technological innovations to reduce management costs and accelerate the
return of funds. Through new technologies and processes we will improve product quality lower costs and elevate earnings. While
consolidating the domestic market the Company will step up the efforts in exploring overseas markets thus elevating our
competitiveness in global markets and improving our resistance to risks.
3. Management risks and measures
In recent years with the Company's curtain wall and material system industry rail transit screen door industry orders increasing
year by year and the Company's real estate property sector increased the Company's assets business personnel and other aspects
have expanded significantly the organizational structure and management system will tend to Due to the complexity the Company
may face the management risk of industrial scale expansion. The Company will continue to improve the management mode integrate
business management optimize the business flow seeking to build a high-efficient and solid management team. We will introduce
high-quality professional technical and management talents in different fields to strengthen the Company's core competitiveness.
4. Production and operation risks and measures
The macro-economy and market demand have added to the fluctuation in prices of main raw materials and labor affecting the
Company‘s profitability and creating additional production and operation risks for the Company. The Company will make use of raw
material futures products to hedge against the risk of large price fluctuations strive to reduce procurement and manufacturing costs
increase technology research and development efforts reduce the loss of raw materials improve the automation and intelligence of
production equipment strengthen staff skills training improve staff labor efficiency and maintain the sustainable development of the
Company.
5. Real estate industry risks and countermeasures
The real estate industry is obviously affected by the country 's macro-control and the Company needs to review the situation and
further strengthen the forward-looking research on the economic situation policies and industry situation and the capital market
enhance predictive power improve the control and resilience of risk factors and timely adjust business strategies to adapt to the new
economic normal and new changes in the real estate industry. At the same time the Company will increase its efforts to eliminate the
cash and ensure that the Company continues to maintain stable operation and healthy development by withdrawing cash.
X. Acceptance of surveys negotiation and visits
1. Reception of investigations communications or interviews in the reporting period
√ Applicable □ Inapplicable
Time/date Place Way Visitor Visitor
Main content
involved and
materials
provided
Disclosure of
information
Friday June 12
2020
Shenzhen
Fangda Building
meeting room
Onsite
investigation
Institution Great Wall Securities
Business and
future
development
Investor Relationship
Record Form on
www.cninfo.com.cn
30 September
2020
Shenzhen
Fangda Town
Meeting room
Onsite
investigation
Institution
Guotai Junan
Securities Co. Ltd.Shenzhen Cyberna
Business and
future
development
Investor Relationship
Record Form on
www.cninfo.com.cn
Capital Management
Partnership (Limited
Partnership)
Shenzhen Dexun
Investment Co. Ltd.Shenzhen Qianhai Pai
Asset Management
Co. Ltd. Shenzhen
Qianhai Hongxing
Investment Co. Ltd.Qianhai Yangtze
River Fund
Management
(Shenzhen) Co. Ltd.Shenzhen Zhongna
Capital Investment
Management Co.Ltd. Shenzhen
Qianhai Daqian
Huayan Investment
Co. Ltd. Shenzhen
Qianhai Leying
Investment
Management Co.Ltd. Shenzhen Daqin
Fund Management
Co. Ltd. Shenzhen
Private Equity
Chamber of
Commerce
TIme 44
Number of institutes 12
Number of individuals 41
Number of other visitors 1
Disclosure of any non-public information No
Chapter 5 Significant Events
I. Profit distribution and reserve capitalization plan
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 2019. Approved by the annual general
meeting of shareholders in 2019 held on May 8 2020 the Company's profit distribution plan in 2019 is as follows: the Company will
distribute cash dividend of RMB 0.50 (tax included) to all shareholders for every 10 shares based on the total share capital after the
closing of the market on the day of equity registration when the profit distribution plan is implemented. A total of RMB54413947.55
will be distributed in cash and no bonus shares will be given nor will the capital reserve be converted into share capital.
During the period from the disclosure of the profit distribution plan in 2019 to its implementation the Company completed the
repurchase of some domestic listed foreign shares (B shares) in 2019 and completed the repurchase and cancellation procedures of
35105238 B shares in Shenzhen Branch of China Securities Depository and Clearing Co. Ltd. on May 20 2020. After the
cancellation the total share capital of the Company was reduced from 1123384189 shares to 1088278951 shares. The total share
capital of the Company is 1088278951 shares after the stock right registration date of the implementation of the profit distribution
plan in 2019 is June 3 2020. That is to say this profit distribution is based on 1088278951 shares and the cash dividend of RMB
0.50 (tax included) is distributed to all shareholders for every 10 shares. A total of RMB54413947.55 will be distributed in cash
without bonus shares or capital reserve conversion.
Explanation of Cash Dividend Distribution Policies
Comply with the Articles of Association or resolution made at
the General Shareholders' Meeting
Yes
Clear and definite distribution standard and proportion Yes
Decision-making procedure and mechanism Yes
Independent directors fulfill their duties Yes
Middle and small shareholders express their opinions and claims.There rights are well protected.Yes
Cash dividend distribution policies are adjusted or revised
according to law
Inapplicable
Profit distribution and reserve capitalizing pre-plans or plans over the recent three years (including the reporting period)
2018: Based on the total share capital of 1123384189 shares after the cancellation of the B shares repurchased on January 11
2019 the Company distributed a cash dividend of RMB2.00 (including tax) for every 10 shares to all shareholders and a total of
RMB224676837.8. No dividend share or capitalization share was issued in the year.
In 2019 the Company will distribute a cash dividend of RMB 0.50 (tax included) to all shareholders for every 10 shares based
on 1088278951 shares of the Company's total share capital after the closing of the market on June 3 2020 on the equity registration
date when the profit distribution plan is implemented. No bonus shares will be given and no capital reserve will be converted into
share capital.
2020: no cash dividends no bonus shares no capital accumulation fund to increase share capital and no undistributed
profits to be carried forward to the next year.
Distribution of cash dividend over the recent three years (including this period)
In RMB
Year
Cash dividend
(including tax)
Net profit
attributable to
shareholders in
the
consolidated
financial
statements
Cash Dividend
proportion in
the net project
attributable to
shareholders in
the
consolidated
financial
statements
Cash dividend
paid in other
manners (such
as repurchase
of shares)
Proportion of
cash dividends
in other ways
in the
consolidated
statement of
net profit
attributable to
shareholders of
common stock
of listed
companies
Total cash
dividend
(including
other manners)
The proportion
of total cash
dividends
(including
other methods)
to the net profit
attributable to
shareholders of
common shares
of listed
companies in
the
consolidated
statement
2020 0.00 382051466.98 0.00% 142134417.40 37.20% 142134417.40 37.20%
2019 54413947.55 347771182.73 15.65% 88223945.70 25.37% 142637893.25 41.01%
2018 224676837.80
2246164571.
68
10.00% 111166053.48 4.95% 335842891.28 14.95%
Cash dividend proposed despite the Company records profits in the report period and a positive undistributed profit/
√ Applicable □ Inapplicable
Cash dividend proposed despite the Company records profits
in report period and a positive undistributed profit/ Reason
Use and use plan of the company's undistributed profits
The total amount of cash dividends of the company in the last
three years (2018-2020) is RMB620615200 (including cash
paid for repurchase B shares) accounting for 62.56% of the
average annual net profit attributable to the shareholders of
the listed company in recent three years. There is no
significant difference between the cash dividend of the
Company and the average of the listed companies in the
industry. The profit distribution plan of the Company
complies with the articles of association and relevant
regulations.
According to the development needs of the Company the
undistributed profits in 2020 will be used for the operation and
development of the company.II. Profit Distribution and Reserve Capitalization in the Report Period
□ Applicable √ Inapplicable
The Company distributed no cash dividends or bonus shares and has no reserve capitalization plan.III. 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
IV. 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.
V. Statement of the Board of Directors Supervisory Committee and Independent Directors (if
applicable) on the “non-standard auditors’ report” issued by the CPA on the current report
period
□ Applicable √ Inapplicable
VI. Statement of changes to accounting policies estimates and audit methods compared with
the financial report of the previous year
√ Applicable □ Inapplicable
(1) Changes in accounting policies
On July 5 2017 the Ministry of Finance issued the accounting standards for Business Enterprises No. 14 - Revenue (CK
[2017] No. 22) (hereinafter referred to as the "new revenue standards"). Domestic listed enterprises are required to implement the
new income standard from January 1 2020. The Company implemented the new income standard on January 1 2020 to adjust the
relevant contents of accounting policies.The new income standard requires that the cumulative impact of the first implementation of the standard should be adjusted to
the amount of retained earnings and other relevant items in the financial statements at the beginning of the first implementation year
(i.e. January 1 2020) and the information of the comparable period should not be adjusted. On December 10 2019 the Ministry of
Finance issued the interpretation of accounting standards for Business Enterprises No. 13.
On December 10 2019 the Ministry of Finance issued the interpretation of accounting standards for Business Enterprises No.
13. The Company implemented the interpretation on January 1 2020 and did not trace back the previous years.
The cumulative impact of the above accounting policies is as follows:
Due to the implementation of the new income standard the Company's consolidated financial statements were adjusted
accordingly as of January 1 2020 including accounts receivable of - 1493496313.22 yuan contract assets of 1297743546.73 yuan
other non current assets due within one year of 50120998.68 yuan other non current assets of 145631767.81 yuan advances of -
135007647.28 yuan contract liabilities of 124240948.05 yuan and other current liabilities of 10766 yuan 699.23 yuan and the
relevant adjustment has no impact on the shareholders' equity attributable to the parent company in the consolidated financial
statements of the Company. At the same time due to the implementation of the new income standard there is no impact on the
financial statements of the parent company of the Company.
(2) Changes in major accounting estimates
At the beginning of 2020 according to the new financial instruments standard the relevant enterprises should assess whether
the credit risk of the relevant financial instruments has changed significantly on each balance sheet date. According to the method of
calculating the expected credit loss the Company uses the latest historical data and combined with forward-looking factors to
calculate the expected credit loss in 2020 In order to objectively and truly reflect the financial situation and operating results of the
Company's various businesses the accounting estimates of the expected credit loss rate of accounts receivable and contract assets are
changed. The accounting estimate change was approved by the 22nd Meeting of the 8th board of directors on April 16 2020.The statement items affected by the change of accounting estimate are as follows: increased accounts receivable by
RMB24118098.91 increased contract assets by RMB71658974.92 increased other non current assets due within one year by
RMB11866064.90 increased other non current assets by RMB3415296.51 decreased deferred income tax assets by
RMB16744810.10 increased surplus reserve by RMB334.64 increased undistributed profit by RMB93672 139.18 increased
minority shareholders' equity RMB641151.31 increased credit impairment loss RMB24118098.91 increased asset impairment loss
RMB86940336.32 yuan increased income tax expense RMB16744810.10 increased minority shareholders' profit and loss
RMB641151.31.
VII. Statement of retrospective restatement of major accounting errors in the report period
□ Applicable √ Inapplicable
No retrospective restatement of major accounting errors in the report period
VIII. Statement of change in the financial statement consolidation scope compared with the
previous financial report
√ Applicable □ Inapplicable
In this period the Company set up a company directly controlled and 3 subsidiaries indirectly controlled. The Company
directly controlled is Shenzhen Fangda Investment Partnership (Limited Partnership) and the 3 companies controlled indirectly are:
Shenzhen Lifu Investment Co. Ltd. Shenzhen Xunfu Investment Co. Ltd. and Fangda Jianke Hong Kong Co. Ltd. added 4
companies to the consolidated statements for this period.IX. Engaging and dismissing of CPA
CPA engaged currently
Domestic public accountants name RSM Thornton (limited liability partnership)
Remuneration for the domestic public accountants (in
RMB10000)
150
Consecutive years of service by the domestic public accountants 2
Name of certified accountants of the domestic public accountants Chen Zhaoxin Zeng Hui Hu Gaosheng
Consecutive years of service by the domestic public accountants
Chen Zhaoxin has served for four years Zeng Hui for three years
and Hu Gaosheng for one year
Overseas public accountants name (if any) None
Remuneration for the overseas public accountants (in
RMB10000)
0
Consecutive years of service by the overseas public accountants
(if any)
None
Name of certified accountants of the overseas public accountants
(if any)
None
Consecutive years of service by the domestic public accountants None
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.
X. Delisting after disclosure of annual report
□ Applicable √ Inapplicable
XI. Bankruptcy and capital reorganizing
□ Applicable √ Inapplicable
The Company has no bankruptcy or reorganization events in the report period.XII. Significant lawsuit and arbitration
□ Applicable √ Inapplicable
The Company has no significant lawsuit or arbitration affair in the report period.XIII. Punishment and rectification
□ Applicable √ Inapplicable
The Company received no penalty and made no correction in the report period.XIV. Credibility of the Company controlling shareholder and actual controller
√ Applicable □ Inapplicable
During the reporting period the Company its controlling shareholders and actual controllers did not fail to fulfill the court's
effective judgment and the large amount of debt due and unpaid.XV. 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
XVI. Material related transactions
1. Related transactions related to routine operation
□ Applicable √ Inapplicable
The Company made no related transaction related to daily operating in the report period.
2. Related transactions related to assets transactions
□ Applicable √ Inapplicable
The Company made no related transaction of assets or equity requisition and sales in the report period.
3. Related transactions related to joint external investment
□ Applicable √ Inapplicable
The Company made no related transaction of joint external investment in the report period.
4. Related credits and debts
□ Applicable √ Inapplicable
The Company had no related debt in the report period.
5. Other major related transactions
□ Applicable √ Inapplicable
The Company has no other significant related transaction in the report period.XVII. Significant contracts and performance
1. Asset entrusting leasing contracting
(1) Asset entrusting
□ Applicable √ Inapplicable
The Company made no custody in the report period.
(2) Contracting
□ Applicable √ Inapplicable
The Company made no contract in the report period
(3) Leasing
□ Applicable √ Inapplicable
There is no leasing during the reporting period.
2. Significant guarantee
√ Applicable □ Inapplicable
(1) Guarantee
In RMB10000
External guarantees made by the Company and subsidiaries (exclude those made for subsidiaries)
Guarantee provided to Date of Guarantee Actual date Actual Type of Term Complete Related
disclosure amount amount of
guarantee
guarantee d or not party
None
Guarantee provided to subsidiaries
Guarantee provided to
Date of
disclosure
Guarantee
amount
Actual date
Actual
amount of
guarantee
Type of
guarantee
Term
Complete
d or not
Related
party
Fangda Jianke
Saturday
April 18
2020
50000
Tuesday July
14 2020
32864.69 Joint liability
since engage
of contract to
2 years upon
due of debt
No Yes
Fangda Jianke
Saturday
April 18
2020
40000
30 September
2020
18309.38 Joint liability
since engage
of contract to
2 years upon
due of debt
No Yes
Fangda Jianke
Wednesday
January 30
2019
30000 1 August 2019 9500 Joint liability
since engage
of contract to
2 years upon
due of debt
No Yes
Fangda Jianke Co.
Ltd. Fangda
Zhichuang Co. Ltd.Kechuangyuan the
Company
Wednesday
January 30
2019
60000
Monday
February 24
2020
23944.07 Joint liability
since engage
of contract to
2 years upon
due of debt
No Yes
Fangda Jianke
Saturday
April 18
2020
25000
Tuesday
September 22
2020
5973.25 Joint liability
since engage
of contract to
2 years upon
due of debt
No Yes
Fangda Jianke
Saturday
April 18
2020
30000
Friday June 12
2020
27047.79 Joint liability
since engage
of contract to
2 years upon
due of debt
No Yes
Fangda Jianke
Wednesday
January 30
2019
15000
Friday April 10
2020
Joint liability
since engage
of contract to
2 years upon
due of debt
No Yes
Fangda Jianke
Wednesday
January 30
2019
20000
Friday March 6
2020
Joint liability
since engage
of contract to
2 years upon
due of debt
No Yes
Fangda Jianke and Wednesday 14000 Wednesday 9905.68 Joint liability since engage No Yes
Fangda Zhichuang January 30
2019
December 18
2019
of contract to
2 years upon
due of debt
Fangda Zhichuang
Saturday
April 18
2020
40000
Tuesday July
28 2020
28375.36 Joint liability
since engage
of contract to
2 years upon
due of debt
No Yes
Fangda Zhichuang
Saturday
April 18
2020
20000 16 June 2020 Joint liability
since engage
of contract to
2 years upon
due of debt
No Yes
Fangda Zhichuang
Saturday
April 18
2020
15000
30 September
2020
4941.4 Joint liability
since engage
of contract to
2 years upon
due of debt
No Yes
Fangda Zhichuang
Saturday
April 18
2020
3000 29 June 2020 3000 Joint liability
From the
effective date
of this
contract to
three years
after the
expiration of
the debt
performance
period under
the
"guarantee
agreement"
(or the debt
early
maturity date
announced
by Party B)
No Yes
Fangda Zhichuang
Wednesday
January 30
2019
10000
Friday April 10
2020
Joint liability
From the
effective date
of this
contract to
three years
after the
expiration of
the debt
performance
period under
No Yes
the
"guarantee
agreement"
(or the debt
early
maturity date
announced
by Party B)
Fangda New Material
Saturday
April 18
2020
8000 23 May 2020 1979.29 Joint liability
since engage
of contract to
2 years upon
due of debt
No Yes
Fangda New Material
Saturday
April 18
2020
6500
Tuesday July
14 2020
1354.24 Joint liability
since engage
of contract to
2 years upon
due of debt
No Yes
Fangda Property
Wednesday
December
4 2019
135000
25 February
2020
97147.63 Joint liability
since engage
of contract to
2 years upon
due of debt
No Yes
Fangda Property
Wednesday
January 30
2019
20000 19 June 2019 19032.15 Joint liability
since engage
of contract to
2 years upon
due of debt
No Yes
Fangda Zhijian
Wednesday
January 30
2019
8000 31 July 2019 4097.35 Joint liability
since engage
of contract to
2 years upon
due of debt
No Yes
Total of guarantee to subsidiaries
approved in the report term (B1)
386500
Total of guarantee to
subsidiaries actually
occurred in the report term
(B2)
370133.43
Total of guarantee to subsidiaries
approved as of the report term (B3)
549500
Total of balance of
guarantee actually provided
to the subsidiaries as of end
of report term (B4)
287472.28
Guarantee provided to subsidiaries
Guarantee provided to
Date of
disclosure
Guarantee
amount
Actual date
Actual
amount of
guarantee
Type of
guarantee
Term
Complete
d or not
Related
party
Total of guarantee provided by the Company (total of the above three)
Total of guarantee approved in the
report term (A1+B1+C1)
386500
Total of guarantee occurred
in the report term
(A2+B2+C2)
370133.43
Total of guarantee approved as of
end of report term (A3+B3+C3)
549500
Total of guarantee occurred
as of the end of report term
(A4+B4+C4)
287472.28
Percentage of the total guarantee occurred (A4+B4+C4) on net
asset of the Company
53.42%
Including:
Guarantees provided to the shareholders substantial controllers
and the related parties (D)
0
Guarantee provided directly or indirectly to objects with over 70%
of liability on asset ratio (E)
19032.15
Amount of guarantee over 50% of the net asset (F) 18429.42
Total of the above 3 (D+E+F) 19032.15
Note of immature guarantee with guarantee liabilities or possible
joint damage liabilities in the report period
None
Statement of external guarantees violating the procedure None
(2) Incompliant external guarantee
□ Applicable √ Inapplicable
The Company made no incompliant external guarantee in the report period.
3. Entrusted cash capital management
(1) Wealth management
√ Applicable □ Inapplicable
Wealth management during the reporting period
In RMB10000
Type Source of fund Amount Undue balance
Due balance to be
recovered
Bank financial products Self-owned fund 79029.74 405.1 0
Total 79029.74 405.1 0
Specific circumstances of high-risk entrusted financing with large individual amount or low security poor liquidity and no cost
protection
□ Applicable √ Inapplicable
Entrusted financial management expected to fail to recover the principal or likely result in impairment
□ Applicable √ Inapplicable
(2) Trusted loans
√ Applicable □ Inapplicable
Overview of entrusted loans during the reporting period
In RMB10000
Total entrusted loans
Source of funds for entrusted
loans
Undue balance Due balance to be recovered
2000 Self-owned fund 0 0
Specific circumstances of high-risk entrusted loan with large individual amount or low security poor liquidity and no cost protection
□ Applicable √ Inapplicable
Entrusted loans expected to fail to recover the principal or likely result in impairment
□ Applicable √ Inapplicable
4. Major contracts for daily operation
□ Applicable √ Inapplicable
5. Other significant contract
□ Applicable √ Inapplicable
The Company entered into no other significant contract in the report.XVI Social responsibilities
1. Fulfillment of social responsibilities
The Company has disclosed the "2020 Social Responsibility Report" the details of which were published on the
http://www.cninfo.com.cn on March 23 2020.
2. Performance of poverty relieving responsibilities
(1) Annual epidemic prevention and control targeted poverty alleviation and summary
In 2020 the Company and its employees donated a total of RMB7.7662 million for epidemic prevention and control targeted
poverty alleviation and other matters. The main items are as follows:
1. In order to prevent and control the new crown epidemic the Company supports medical staff who are on the front line of the
epidemic respectively donating RMB2 million to the Wuhan Red Cross Society and RMB1 million to the Jiangxi Red Cross
Foundation for the purchase of prevention and control materials motivate frontline medical staff;
2. Period To help the large tenants in Shenzhen the Company has reduced the rent by RMB2.52 million;
3. The Company donated RMB2 million to the Jiangxi Red Cross Foundation to support poverty alleviation in Aktao County
Xinjiang;
4. The Company organized party members and employees to donate RMB120500 to fight the epidemic;
5. The Company donated 50000 masks to the new district of Nanchang City equivalent to RMB112500 in capital;
The Company will continue to fulfill its social responsibility for precision poverty alleviation and make donations from time to
time based on business development.
(2) Result of targeted poverty alleviation
Specifications Unit Qty/Description
1. General situation —— ——
Including: 1. Fund (in RMB10000) 200.1
II. Investment —— ——
1. Industry development poverty relief —— ——
Including: 1.1 Industry development
projects
—— Others
2. Employment transfer —— ——
3. Relocation —— ——
4. Education —— ——
5. Health care support —— ——
6. Eco-protection support —— ——
7. Last-line guarantee —— ——
8. Social poverty relieving —— ——
8.2 Targeted poverty alleviation
investment amount
(in RMB10000) 200.1
9. Others —— ——
III. Prizes —— ——
Top 500 charitable enterprises in China in
2020
Jiangxi Province "thousands of enterprises
help thousands of villages" precise poverty
alleviation action advanced private enterprise
title
Example group of Jiangxi Poyang to help
aketao out of poverty in 2020
Chairman Xiong Jianming won the title of
"2020 China Charity entrepreneur"
(3) Further property relief plans
The Company will continue to fulfill its social responsibility for precision poverty alleviation and make donations from time to time
based on business development.
3. Environmental protection
Whether the Company and its subsidiaries are key polluting companies disclosed by the environmental protection authority
□ Yes √ No
No
The Company and its subsidiaries have earnestly implemented the Environmental Protection Law of the People's Republic of
China the Law of the People's Republic of China on Water Pollution Prevention and Control the Law of the People's Republic of
China on the Prevention and Control of Air Pollution and the Law of the People's Republic of China on the Prevention and Control
of Solid Waste Pollution. In the environmental protection laws and regulations there were no penalties for violations of laws and
regulations during the reporting period.XIX. Other material events
√ Applicable □ Inapplicable
1. From April 3 2020 to May 12 2020 the Company completed the repurchase of some domestically listed foreign shares (B
shares) in 2019 through centralized bidding and the cumulative number of B shares repurchased without selling restrictions was
35105238 On May 20 2020 the Shenzhen Branch of China Securities Depository and Clearing Co. Ltd. completed the repurchase
and cancellation procedures. The unrestricted B shares decreased by 35105238 shares and the total share capital decreased from
1123384189 shares to 1088278951 shares.
2. As of September 22 2020 the Company's 2020 repurchase period for some domestically listed foreign shares (B shares) has
expired. A total 14404724 B shares have been repurchased. The highest price of repurchase is HK$3.47 per share. The lowest price
is HK$3.16 per share and the cumulative payment of HK$48359819.24 (including transaction-related expenses). The Company has
disclosed the "Announcement on the Expiry of the Repurchase Period and the Implementation Results of Share Repurchase" on
September 24 2020. The repurchased shares shall be cancelled and the registered capital shall be reduced after being reviewed and
approved by the general meeting of shareholders within three years after the announcement of the repurchase results is disclosed; if
the Company's shareholders' meeting does not pass the review the shares that have been repurchased will be transferred within three
years according to relevant regulations.The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.6 – Listed Companies Engaged in Decoration Business.
During the reporting period the Company's relevant qualifications have not changed significantly and the validity period has
not expired.No. Qualification Valid period
1 Construction curtain wall designing class A Until March 16 2025
2 Construction curtain wall contracting class A Until December 31 2021
3 Construction decoration contracting class B Until December 31 2021
4 Steel structure engineering contracting class B Until December 31 2021
5 Construction mechanical and electric equipment
installation contracting class C
Until December 31 2021
6 City and road lighting engineering contracting class
C
Until December 31 2021
7 Construction mechanical and electric equipment
installation contracting class A
Until February 25 2025
In the report period the Company‘s safety management is normal. The Company pays large attention to employees‘ safety
awareness and capabilities of emergency processing. The Company has strengthened safety production and investigation of safety
risks. The Company has formulated safety management guidelines to guide safety management. There was no significant safety
accidents in the report period.XX. Material events of subsidiaries
□ Applicable √ Inapplicable
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
Quantity
Proportio
n
Issued
new
shares
Bonus
shares
Transferre
d from
reserves
Others Subtotal Quantity
Proportio
n
I. Shares with trade
restriction conditions
1431568 0.13% 870525 870525 2302093 0.21%
1. State-owned shares
2. State-owned legal
person shares
3. Other domestic shares 1431568 0.13% 870525 870525 2302093 0.21%
Including: Shares held
by domestic legal persons
Domestic natural
person shares
1431568 0.13% 870525 870525 2302093 0.21%
4. Shares held by foreign
investors
Including: Shares held
by foreign legal persons
Domestic natural
person shares
II. Unrestricted shares
1121952
621
99.87%
-359757
63
-359757
63
1085976
858
99.79%
1. Common shares in RMB
6782839
04
60.38% -870525 -870525
6774133
79
62.25%
2. Foreign shares in
domestic market
4436687
17
39.49%
-351052
38
-351052
38
4085634
79
37.54%
3. Foreign shares in
overseas market
4. Others
III. Total of capital shares 1123384 100.00% -351052 -351052 1088278 100.00%
189 38 38 951
Reasons
√ Applicable □ Inapplicable
1. From April 3 2020 to May 12 2020 the Company completed the repurchase of some domestically listed foreign shares (B
shares) in 2019 through centralized bidding and the cumulative number of B shares repurchased without selling restrictions was
35105238 On May 20 2020 the Shenzhen Branch of China Securities Depository and Clearing Co. Ltd. completed the repurchase
and cancellation procedures. The unrestricted B shares decreased by 35105238 shares and the total share capital decreased from
1123384189 shares to 1088278951 shares.
2. Xiong Jianming chairman of the board of directors of the Company increased 1171000 A-share shares of the Company from
the secondary market through the securities trading system of Shenzhen Stock Exchange from July 1 2020 to August 27 2020.
Among them 878250 shares are senior management lock-in shares with limited sales conditions. Therefore 878250 shares of the
Company are increased with limited sales conditions and 878250 shares are decreased with unlimited sales conditions.
3. Mr. Ye Zhiqing the employee representative supervisor of the Company resigned on May 8 2020. He holds 19100 A shares
of the Company 14325 shares subject to sales restrictions and 4775 shares subject to restrictions on sales before he resigns. All the
shares need to be locked within half a year after leaving office. Therefore 4775 shares of restricted shares were reduced and 4775
shares of restricted shares were increased.
4. Mr. Fan Xiaodong a supervisor elected by the Company‘s 2019 annual general meeting on May 8 2020 holds 8800 A shares
of the Company. Starting from May 11 2020 6600 shares of which are subject to sales restrictions Regarding the locked shares
6600 shares were added to the restricted shares and 6600 shares were not restricted.
Approval of the change
√ Applicable □ Inapplicable
1. The Company's 2019 repurchase of certain domestically listed foreign shares (B shares) related matters respectively on
November 28 2019 and December 16 2019. The nineteenth meeting of the eighth board of directors and Deliberated and approved
at the first extraordinary general meeting of shareholders in 2019.
2. On May 8 2020 Mr. Fan Xiaodong was elected as a supervisor at the Company's 2019 annual general meeting.
Share transfer
√ Applicable □ Inapplicable
The Company repurchased some 35105238 shares of domestically listed foreign shares (B shares) in 2019 and completed the share
repurchase and cancellation procedures at the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited on
May 20 2020.Progress in the implementation of share repurchase
√ Applicable □ Inapplicable
1. Repurchase of some domestic listed foreign shares (B shares) in 2019: from April 3 2020 to May 12 2020 a total of
35105238 B shares of the Company have been repurchased with the highest price of HK $3.33 per share and the lowest price of HK
$2.45 per share and the accumulated payment of HK $108930044.20 (including transaction related fees). The cancellation
procedures of 35105238 shares repurchased have been completed on May 20 2020. For details please refer to the announcement on
completion of cancellation of repurchased shares disclosed by the Company on May 22 2020.
2. Repurchase of some domestic listed foreign shares (B shares) in 2020: as of September 22 2020 the repurchase period has
expired and 14404724 B shares of the Company have been repurchased with the highest price of HK $3.47 per share and the lowest
price of HK $3.16 per share and the cumulative payment of 48359 819.24 Hong Kong dollars (including transaction related
expenses). The Company has disclosed the announcement on the expiration of the repurchase period and the implementation results
of share repurchase on September 24 2020. The shares to be repurchased will be cancelled and the registered capital will be reduced
after being deliberated and approved by the general meeting of shareholders within three years after the announcement of the
repurchase results is disclosed. If the deliberation is not approved by the general meeting of shareholders the repurchased shares will
be cancelled within three years according to relevant regulations transfer the possession of.Progress in the implementation of the reduction of shareholding shares by means of centralized bidding
□ Applicable √ Inapplicable
Impacts on financial indicators including basic and diluted earnings per share net assets per share attributable to common
shareholders of the Company in the most recent year and period
□ Applicable √ Inapplicable
Others that need to be disclosed as required by the securities supervisor
□ Applicable √ Inapplicable
2. Changes in conditional shares
√ Applicable □ Inapplicable
In share
Shareholder name
Conditional
shares at
beginning of the
period
Increased this
period
Released this
period
Conditional
shares at end of
the period
Reason of
condition
Date of releasing
Xiong Jianming 1417243 878250 2295493
Increase of
shareholding
25% of the annual
shareholding is released
from the sale
Ye Zhiqing 14325 14325
The supervisor
leaves after
the expiration
of his term of
office
Monday November 9
2020
Fan Xiaodong 6600 6600
Newly elected
supervisor
25% of the annual
shareholding is released
from the sale
Total 1431568 884850 14325 2302093 -- --
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
Number of
shareholders of
common shares
at the end of
the report
period
59221
Total number of
ordinary share
shareholders at
the end of the
month before the
disclosure date of
the annual report
57995
Number of
shareholders of
preferred stocks of
which voting rights
recovered in the
report period
0
Total number of
shareholders of
preference shares
of which voting
rights resumed at
the end of the
month before the
disclosure date of
the annual report
0
Shareholders holding 5% of the Company's shares or top-10 shareholders
Shareholder name
Nature of
shareholder
Sharehold
ing
percentag
e
Number of
shares held
at the end
of the
reporting
period
Change in
the reporting
period
Condition
al shares
Amount of
shares without
sales restriction
Pledging or freezing
Share status Quantity
Shenzhen Banglin
Technologies
Development Co.
Ltd.
Domestic
non-state legal
person
10.87%
11830754
6
3464892 0 118307546 Pledged 32700000
Shengjiu
Investment Ltd.
Foreign legal
person
9.66%
10513456
2
1440533 0 105134562
Fang Wei
Overseas natural
person
2.79% 30322437 -4723102 0 30322437
Gong Qing Cheng
Shi Li He
Investment
Management
Partnership
Domestic
non-state legal
person
1.46% 15860609 -10930879 0 15860609
Enterprise (limited
partner)
VANGUARD
EMERGING
MARKETS
STOCK INDEX
FUND
Foreign legal
person
0.58% 6312683 -1633800 0 6312683
VANGUARD
TOTAL
INTERNATIONA
L STOCK INDEX
FUND
Foreign legal
person
0.57% 6247740 375733 0 6247740
Shenwan
Hongyuan
Securities (Hong
Kong) Co. Ltd.
Foreign legal
person
0.53% 5783896 -1847400 0 5783896
Qu Chunlin
Domestic natural
person
0.52% 5666861 1359850 0 5666861
First Shanghai
Securities Limited
Foreign legal
person
0.36% 3938704 -63000 0 3938704
Shanghai Silver
Leaf Investment
Co. Ltd.-Silver
Leaf Quantitative
Hedging Phase 1
Private Securities
Investment Fund
Others 0.35% 3755500 3755500 0 3755500
A strategic investor or ordinary legal
person becomes the Top10
shareholder due a stock issue.None
Notes to top ten shareholder
relationship or "action in concert"
Among the shareholders Shenzhen Banglin Technology Development Co. Ltd. and
Shengjiu Investment Co. Ltd. are parties action-in-concert. Shenzhen Banglin Technology
Development Co. Ltd. and Gong Qing Cheng Shi Li He Investment Management
Partnership Enterprise are related parties. The Company is not notified of other
action-in-concert or related parties among the other holders of current shares.
Description of the above shareholders
involved in entrusted / entrusted
voting right and waiver of voting right
None
Top 10 holders of unconditional shares
Shareholder name Amount of shares without sales restriction
Category of shares
Category of shares Quantity
Shenzhen Banglin Technologies
Development Co. Ltd.
118307546 RMB common shares 118307546
Shengjiu Investment Ltd. 105134562
Domestically listed
foreign shares
105134562
Fang Wei 30322437 RMB common shares 30322437
Gong Qing Cheng Shi Li He
Investment Management Partnership
Enterprise (limited partner)
15860609 RMB common shares 15860609
VANGUARD EMERGING
MARKETS STOCK INDEX FUND
6312683
Domestically listed
foreign shares
6312683
VANGUARD TOTAL
INTERNATIONAL STOCK INDEX
FUND
6247740
Domestically listed
foreign shares
6247740
Shenwan Hongyuan Securities (Hong
Kong) Co. Ltd.
5783896
Domestically listed
foreign shares
5783896
Qu Chunlin 5666861 RMB common shares 5666861
First Shanghai Securities Limited 3938704
Domestically listed
foreign shares
3938704
Shanghai Silver Leaf Investment Co.Ltd.-Silver Leaf Quantitative Hedging
Phase 1 Private Securities Investment
Fund
3755500 RMB common shares 3755500
No action-in-concert or related parties
among the top10 unconditional
shareholders and between the top10
unconditional shareholders and the
top10 shareholders
Among the shareholders Shenzhen Banglin Technology Development Co. Ltd. and
Shengjiu Investment Co. Ltd. are parties action-in-concert. Shenzhen Banglin Technology
Development Co. Ltd. and Gong Qing Cheng Shi Li He Investment Management
Partnership Enterprise are related parties. The Company is not notified of other
action-in-concert or related parties among the other holders of current shares.Top-10 common share shareholders
participating in margin trade
Shenzhen Banglin Technology Development Co. Ltd. holds 55000000 shares of the
Company through the customer credit transaction guarantee securities account of Ping An
Securities Co. Ltd. and Shanghai Yinye Investment Co. Ltd.-Yinye Quantitative Hedging
Phase 2 Private Securities Investment Fund through Xiangcai Securities Co. Ltd. The
customer credit transaction guarantee securities account holds 3755500 shares of the
Company.
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
Name of controlling shareholder
Legal
representative/res
ponsible person
Date of establishment Organization code Main business
Shenzhen Banglin Technologies
Development Co. Ltd.
Chen Jinwu Jun. 7 2001 914403007298400552
Industrial investment
developing of electronic
products technical
consulting domestic
commerce material trading
Stock ownership of other
domestic and overseas listed
company controlled or whose
shares are held by controlling
shareholders
None
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 controller
Relationship with the
actual controller
Nationality Right of residence in another country or region
Xiong Jianming Himself Chinese Yes
Job and position Chairman of the Board and president of the Company over the past 5 years
Profiles of domestic and overseas
listed companies in which the
controller held shares
The controller held no share in other listed companies in the last ten years.
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. Other legal person shareholders with over 10% of total shares
□ Applicable √ Inapplicable
5. Conditional decrease of shareholding by controlling shareholder actual controller reorganizer and
other entities
□ Applicable √ Inapplicable
Chapter VII Preferred Shares
□ Applicable √ Inapplicable
The Company had no preferred share in the report period.
VIII. Information about the Company’s Convertible Bonds
□ Applicable √ Inapplicable
No convertible bonds in the report period
Chapter IX Particulars about the Directors Supervisors Senior
Management and Employees
I. Changes in shareholding of Directors Supervisors and Senior Management
PRINTE
D NAME
Position Job status Sex Age
Starting
date of
the term
End date
of the
term
Number
of shares
held at
beginning
of the
period
Increased
shares in
this
period
(share)
Decrease
d shares
in this
period
(share)
Other
increase
and
decrease
(share)
Number
of shares
held at
end of the
period
Xiong
Jianming
Chairman
president
In office M 63
Monday
Novembe
r 20 1995
Monday
May 8
2023
1889657 1171000 3060657
Xiong
Jianwei
Director In office M 52
Friday
April 16
1999
Monday
May 8
2023
Zhou
Zhigang
Director In office M 58
Monday
April 9
2007
Monday
May 8
2023
Zhou
Zhigang
Vice
president
In office M 58
Tuesday
April 11
2017
Monday
May 8
2023
Zhou
Zhigang
Secretary
of the
Board
Resigned M 58
Wednesda
y
October
22 2003
8 May
2020
Lin Kebin Director In office M 43
Tuesday
April 11
2017
Monday
May 8
2023
Lin Kebin
Vice
president
In office M 43
Friday
June 6
2008
Monday
May 8
2023
Guo
Jinlong
Independ
ent
director
In office M 59
Tuesday
April 11
2017
Monday
May 8
2023
Huang
Yaying
Independ
ent
In office M 58
8 May
2020
Monday
May 8
director 2023
Cao
Zhongxio
ng
Independ
ent
director
In office M 42
8 May
2020
Monday
May 8
2023
Dong
Gelin
Superviso
ry
Committe
e meeting
convener
In office M 42
Friday
December
28 2018
Monday
May 8
2023
Cao Naisi
Superviso
r
In office F 42
Tuesday
April 11
2017
Monday
May 8
2023
Fan
Xiaodong
Superviso
r
In office M 34
8 May
2020
Monday
May 8
2023
8800 8800
Wei
Yuexing
Vice
president
In office M 52
Jul. 29
2011
Monday
May 8
2023
Xiao
Yangjian
Secretary
of the
Board
In office M 36
Tuesday
June 23
2020
Monday
May 8
2023
Guo
Wanda
Independ
ent
director
Resigned M 55
Monday
March 31
2014
8 May
2020
Deng Lei
Independ
ent
director
Resigned M 42
Tuesday
February
16 2016
8 May
2020
Ye
Zhiqing
Superviso
r
Resigned M 46
Friday
December
28 2018
8 May
2020
19100 19100
Total -- -- -- -- -- -- 1917557 1171000 0 0 3088557
II. Changes in the Directors Supervisors and Senior Executives
√ Applicable □ Inapplicable
PRINTED
NAME
Job Type Date Reason
Guo Wanda
Independent
director
Leaving office 8 May 2020 Office term expires
Deng Lei Independent Leaving office 8 May 2020 Office term expires
director
Ye Zhiqing
Staff
representative
supervisor
Leaving office 8 May 2020 Office term expires
Zhou Zhigang
Secretary of the
Board
Leaving office 8 May 2020 Office term expires
Huang Yaying
Independent
director
Elected 8 May 2020 Re-elected
Cao Zhongxiong
Independent
director
Elected 8 May 2020 Re-elected
Fan Xiaodong Supervisor Elected 8 May 2020 Re-elected
Xiao Yangjian
Secretary of the
Board
Engaged
Tuesday June
23 2020
Re-elected
III. Office Description
Professional background work experience and main duties in the Company of existing directors supervisors and senior management
1. Mr. Xiong Jianming: PHD Management; senior engineer; part-time professor of Beijing Institute of Civil Engineering and
Architecture and Nanchang University. He is now the chairman and CEO of the Company representative of the 13th National
People's Congress and the 6th Shenzhen People's Congress president of the Shenzhen Semi-conductor Lighting Industry Promotion
Association chairman of Shenzhen Nanshan District Industry and Commerce Association and honorary chairman of Shenzhen
Nanshan District Charity. He was once employed by Jiangxi Provincial Machinery Design Academe Administration Bureau of
Shekou District of Shenzhen government etc deputy to the 10th People‘s Congress of Guangdong Province deputy to the 2nd and
3rd People‘s Congress of Shenzhen City.
2. 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.
3. Mr. Zhou Zhigang: Bachelor degree. He is now the director and vice president of the Company. He used to be the Secretary of the
board of directors director of the marketing headquarters general manager of the enterprise management center and director of the
human resources department of the Company.
4. Mr. Lin kebing: Bachelor degree. He is now the director and vice president of the Company. He was once the financial director of
the Company.
5. Guo Jinlong: master's degree CPA. He was a member of the fifth session of the CPPCC of Shenzhen City. He is currently the
deputy to the sixth session of the People's Congress of Shenzhen vice chairman of Guangdong Certified Public Accountants
Association (limited liability partnership) partner of ShineWing Certified Public Account and an independent director of the
Company Shenzhen Sanlipu Photoelectric Technology Co. Ltd. and Inner Mongolia Furui Medical Technology Co. Ltd. He was a
former member of the 5th CPPCC Shenzhen.
6. Mr. Huang YAYING: Master Professor part-time lawyer. He is currently a professor of Shenzhen University a part-time lawyer of
Beiyuan law firm and an independent director of the Company Han's Laser Technology Industry Group Co. Ltd. Shenzhen
BAOYING Construction Holding Group Co. Ltd. and Shenzhen Lihe Technology Innovation Co. Ltd. He was once a professor of
Northwest University of Political Science and Law and dean of Shenzhen University Law School.
7. Mr. Cao Zhongxiong: doctor now is the executive director of New Economy Research Institute of comprehensive development
and Research Institute (Shenzhen China). He is engaged in the research and consulting work of new economy and enterprise strategy.
He is an independent director of the Company. He was once a technician of China National Chemical Corporation Bluestar Cleaning
Agent Co. Ltd. of China National Chemical Corporation.
Mr. Dong Gelin: bachelor's degree a senior engineer the Supervisory Committee meeting convener and deputy technical director. He
was once a designer of Shenzhen Fangda Jianke a wholly-owned subsidiary of the Company chief engineer of the designing
institution assistant to the general manager and general manager of Beijing branch of Fangda Jianke. He is now the vice general
manager of Fangda Jianke.
9. Ms. Cao Naisi: Bachelor's degree intermediate economist currently Supervisor of the Company and Deputy General Manager of
Fangda Jianke. She once served as the securities affairs representative of the Company the director of the audit and supervision
department the deputy director of the human resources department the general manager of Fangda Jianke Beijing Branch the
general manager of Fangda Jianke South China Branch and so on.
10. Mr. Fan Xiaodong: Bachelor degree major in law. He joined the legal department of the Company in 2011. He is now the
supervisor and vice minister of the legal department of the Company.
11. Mr. Wei Yuexing holds a Bachelor degree and is a senior engineer. He is the vice president of the and general manager of Fangda
Jianke.
12. Mr. Xiao Yangjian: Bachelor degree. Now he is the Secretary of the board of directors of the Company. He once served as deputy
general manager and Secretary of the board of directors of Shenzhen Xiongtao Power Technology Co. Ltd. and deputy general
manager and Secretary of the board of directors of Shenzhen Guangfeng Technology Co. Ltd.Offices held at shareholders entitie
√ Applicable □ Inapplicable
Name Shareholder entity Office
Starting date of the
term
End date
of the term
Whether any
remuneration is
paid at the
shareholder entity
Xiong Jianming Shengjiu Investment Ltd. Director Oct. 6 2011 No
Wei Yuexing
Gong Qing Cheng Shi Li He Investment
Management Partnership Enterprise
(limited partner)
Executive
partner
Tuesday December
20 2016
No
Office
description
None
Offices held at other entities
√ Applicable □ Inapplicable
Name Entity name Office
Starting date of the
term
End date of
the term
Whether any
remuneration is
paid at the
shareholder entity
Guo Jinlong
ShineWing Certified Public Accountants
(limited liability partnership)
Partner
Saturday October
1 2005
Yes
Guo Jinlong
Shenzhen Sanlipu Photoelectric Technology
Co. Ltd.
Independent
director
Friday July 10
2020
Yes
Guo Jinlong
Inner Mongolia Furui Medical Technology
Co. Ltd
Independent
director
Wednesday May
20 2020
Yes
Huang Yaying Shenzhen University Professor
Tuesday
September 16
2003
Yes
Huang Yaying Beiyuan law firm
Part-time
lawyer
Wednesday April
15 2020
No
Huang Yaying
Han's Laser Technology Industry Group
Co. Ltd
Independent
director
Friday October 11
2013
Yes
Huang Yaying
Shenzhen BAOYING Construction Holding
Group Co. Ltd.Independent
director
Tuesday June 2
2020
Yes
Huang Yaying
Shenzhen Lihe Technology Innovation Co.Ltd.Independent
director
Monday February
10 2020
Yes
Cao
Zhongxiong
General Development Research Institute
(Shenzhen China)
Executive
director of
New
Economy
Research
Institute
Thursday January
15 2015
Yes
Office
description
The above-mentioned three are independent directors of the Company.Penalties given by existing securities regulators on directors supervisors and senior management and those who have resigned in the
report period
□ Applicable √ Inapplicable
IV. Remunerations of the Directors Supervisors and Senior Executives
Decision making procedures basis and actual payment of remunerations of the Directors Supervisors and Senior Executives
1. Remuneration schemes for directors and supervisors 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.Remuneration for directors and supervisors are decided by the shareholders‘ meeting. Remunerations for executives are composed of
wages and performance bonus as decided by the Board.Payment on monthly basis
Remunerations of the Directors Supervisors and Senior Executives of the Company During the reporting period
In RMB10000
PRINTED
NAME
Position Sex Age Job status
Total
remuneration
Remuneration
from related
parties
Xiong Jianming
Chairman
president
M 63 In office 228.67 No
Xiong Jianwei Director M 52 In office 107.34 No
Zhou Zhigang
Director vice
president
M 58 In office 81.43 No
Lin Kebin
Director vice
president
M 43 In office 105.28 No
Guo Jinlong
Independent
director
M 59 In office 8 No
Huang Yaying
Independent
director
M 58 In office 5.14 No
Cao Zhongxiong
Independent
director
M 42 In office 5.14 No
Dong Gelin
Supervisory
Committee
meeting convener
M 42 In office 71.9 No
Cao Naisi Supervisor F 42 In office 58.55 No
Fan Xiaodong Supervisor M 34 In office 40.36 No
Wei Yuexing Vice president M 52 In office 105.47 No
Xiao Yangjian
Secretary of the
Board
M 36 In office 47.75 No
Guo Wanda
Independent
director
M 55 Resigned 2.86 No
Deng Lei
Independent
director
M 42 Resigned 2.86 No
Ye Zhiqing Supervisor M 46 Resigned 25.42 No
Total -- -- -- -- 896.17 --
Equity incentive programs provided for the Directors and Senior Executives of the Company during the reporting period
□ Applicable √ Inapplicable
5. Employees
1. Staff number professional composition and education
Staff number of the parent 65
Staff number of major subsidiaries 1693
Total staff number 2245
Number of employees receiving remuneration in the period 2245
Resigned and retired staff number to whom the parent and major
subsidiaries need to pay remuneration
0
Professional composition
Categories of professions Number of people
Production 820
Sales & Marketing 69
Technicians 1140
Finance & Accounting 73
Administration 143
Total 2245
Education
Categories of education Number of people
High school or below 1014
College diploma 452
Bachelor 756
Master‘s degree 21
Doctor‘s degree 2
Total 2245
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.
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 14516926.35
Total remuneration paid for labor outsourcing (RMB) 466846880.09
Chapter X Corporation Governance
1. Overview
During the report period the Company strictly complied with the Company Law Securities Law Governance Standards for
Listed Companies Shenzhen Stock Exchange Share Listing Rules Operation Regulations for Listed Companies in the Main Board
of Shenzhen Stock Exchange continued to improve the legal person governance structure and has formulated a series of internal
management systems covering various aspects. The Company has set up a comprehensive and effective internal control system in
important decision making related transaction decision making financial management HR management administration purchase
production and sales management confidentiality and information disclosure.Major difference between the actual corporate governance and regulations on corporate governance of listed companies issued by
CSRC
□ Yes √ No
There is no major difference between the actual corporate governance and regulations on corporate governance of listed companies
issued by CSRC.
2. Independence of the Company from the controlling shareholder in aspects of businesses
personnel assets organizations and accounting
(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.
(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
4. Annual and extraordinary shareholder meetings held during the report period
1. Annual shareholder meeting during the report period
Meeting Type Participation of Date Date of Index for information disclosure
investors disclosure
2019 Annual
Shareholder Meeting
Annual shareholders‘
meeting
24.66% 8 May 2020
Saturday May
9 2020
Notice on Resolutions of the
Annual Shareholders‘ Meeting
(2020-25) released on
www.cninfo.com.cn
2. Shareholders of preference shares of which voting right resume convening an extraordinary
shareholders’ meeting
□ Applicable √ Inapplicable
V. Performance of independent directors during the report period
1. Independent directors’ presenting of board meetings and shareholders’ meetings in the report period
Independent directors‘ presenting of board meetings and shareholders‘ meetings in the report period
Name of
independent
director
Time of board
meetings
should have
attended
Number of
board meetings
attended
Presented by
telecom
Number of
board meetings
attended by
proxy
Number of
board meetings
not attended
Absent for two
consecutive
meetings
Number of
shareholders'
meetings
attended
Guo Jinlong 8 3 5 0 0 No 1
Huang Yaying 5 2 3 0 0 No 0
Cao Zhongxiong 5 2 3 0 0 No 0
Guo Wanda (left
after term expired)
3 1 2 0 0 No 1
Deng Lei (left
after term expired)
3 1 2 0 0 No 1
Statement for absence for two consecutive board meetings
None
2. Objection raised by independent directors
Any objection raised by independent directors against the Company‘s related issues
□ Yes √ No
Independent directors made no objection on related issued of the Company in the report period.
3. Other statement for performance of independent directors
Adoption of suggestion proposed by independent directors
√ Yes □ No
Statement for suggestion adopted or not by the Company
During the reporting period the Company‘s independent directors strictly followed the relevant laws regulations and the
―Articles of Association‖ and paid attention to the Company‘s operations attended the Company‘s Board of Directors and
shareholders‘ meeting and all the independent directors carefully reviewed the various proposals of the Company‘s Board of
Directors and performed their duties conscientiously. The development decision has put forward constructive opinions or suggestions
and has issued independent opinions on the improvement of the Company's system and major business management matters
corporate guarantees profit distribution use of raised funds etc. Independent directors have adopted the Company‘s relevant
recommendations. It has played an active role in safeguarding the interests of the Company and small and medium shareholders.VI. Performance of specific committees under the Board
(1) Performance of the Development Strategy Committee
During the report period the Development Strategy Committee of the Company has performed its duties in accordance with the
Working Regulations for Development Strategy Committee and played its role in the decision-making process of the Company. Two
meetings were convened and details are disclosed as follows:
1. On April 16 2020 the Company held the 6th meeting of the 8th Development Strategy Commission to listen to the report on
production and operation in 2019 and production and operation plan for 2020.
2. On August 20 2020 the 1st meeting of the Development Strategy Committee of the 8th term of the Board was held to view
the Company‘s production and operation in the first half of 2020 and studied the fulfillment of the business plan in the first half of the
year and places to be improved in the second half.
(2) Performance of the Auditing Committee
During the reporting period the audit committee of the board of directors of the Company held four meetings to review the
audit work arrangement regular financial reports selection and employment of accounting firms aluminum futures hedging and
foreign exchange derivatives trading. Details of the meetings are disclosed as follows:
1. On April 10 2020 the 14th meeting of the Auditing Committee of the 8th term of the Board was held to review the financial
statements with the initial opinion issued by the CFA for 2019 and approve the auditor report issued by the CFA. After the CFA
issued to final auditor‘s opinion the Auditing Committee submitted the resolution on the annual financial statements to the Board and
issued the summary report on the auditing of the CFA for this year.
2. On April 16 2020 the Company held the 15th meeting of the audit committee of the 8th board of directors. The meeting
listened to the financial and internal audit work report of 2019 and deliberated and approved (1) the Company's audited financial and
accounting statements of 2019; (2) the financial and accounting statements of the first quarter of 2020; (3) the proposal to hire the
audit institution of 2020; (4) the Company's internal audit report of 2019 Work plan; (5) feasibility analysis on Aluminum Futures
Hedging and foreign exchange derivatives trading business; (6) proposal on adjusting investment amount and service life of
aluminum futures hedging and foreign exchange derivatives trading business; (7) self-evaluation report on internal control of the
Company in 2019. The audit committee suggests that the internal audit body should increase communication with the audit
committee to help the committee better under the Company's condition and make higher requirements on the audit quality. The
members of the audit committee gave professional advice on improving the Company's processes optimizing the system and risk
prevention from various perspectives based on their own experience in different industries. They also put forward higher
requirements for the Company's future internal control work.
3. On August 20 2020 the Company held the first meeting of the audit committee of the ninth board of directors and reported
to the members the financial work and internal audit report for the first half of 2020. The financial statements of the Company for the
half year of 2020 were reviewed and approved.
4. On October 19 2020 the Company held the second meeting of the audit committee of the ninth board of directors and
deliberated and approved (1) the financial statements of the third quarter of 2020; (2) the feasibility analysis on the development of
commodity futures option hedging business; (3) the proposal on the development of commodity futures option hedging business.
(3) Performance of the Remuneration and Assessment Committee
During the reporting period the remuneration and assessment committee of the board of directors of the Company held two
meetings to review the remuneration and Allowance Schemes of the directors and senior managers of the Company in accordance
with the working rules of the remuneration and assessment committee formulated by the Company. Details of the meetings are
disclosed as follows:
1. On April 16 2020 the Company held the third meeting of the remuneration and assessment committee of the eighth board of
directors and deliberated and passed (1) the proposal on the remuneration of directors and senior managers in 2019; (2) the annual
allowance scheme for the ninth directors (including independent directors) of the Company.
2. On May 8 2020 the Company held the first meeting of the compensation and assessment committee of the ninth board of
directors deliberating and approving the ninth senior management compensation plan of the Company.VII. Performance of Supervisory Committee
(1) Risks for the Company discovered by the Supervisory Committee
□ Yes √ No
No disagreement with supervisory issues by the Supervisory Committee during the report period.
(2) The Supervisory Committee’ Work Report 2020
In 2020 the Supervisory Committee performed its duties and obligations in supervision and protect all shareholders‘ and the
Company‘s interests in accordance with the Company Law Share Listing Rules Articles of Association and Rules of the Procedure
of the Supervisory Committee. The 2020 supervisory committee's work plan is as follows:
1. Opinions
(1) Legal compliance
In 2020 the Board of Supervisors of the Company supervised the operation of the Company in accordance with the law. In the
report period the Company has been operated in accordance with law. The convening of meeting of the Board and the
decision-making process are compliant with law regulations and Articles of Association; the internal control system is solid.
Directors and senior management have performed their obligations. No violation against law regulations Articles of Association and
interests of the Company and shareholders was discovered.
(2) Financial condition
During the period the Board of Supervisors supervised the financial affairs of the Company. The accounting management has
been compliant with the Accounting Law Enterprise Accounting Standard. No false misleading statement or significant omission
was found in financial statements. The financial reports of the Company reflect the Company‘s financial position operation
performance cash flows and major risks truthfully accurately and completely. The CPA has issued the standard auditor's report in
2020 which is objective fair and truthful. It reflects the Company's financial position and operation performance.
(3) Implementation of internal control
According to the board of supervisors the design and operation of the internal control is effective and meets the Company's
management and development requirements. It can ensure the truthfulness lawfulness completeness of the financial materials and
ensure the safety and completeness of the Company‘s property. In 2020 there was no violation by the Company against the
Operation Regulations for Listed Companies in the Shenzhen Stock Exchange and the Company‘s internal control system. The 2020
Internal Control Self-evaluation Report truthfully and objectively reflects the establishment implementation and improvement of the
Company‘s internal control system. There are no significant or important problems in the financial and non-financial reports in the
report period.
(4) Associated Transactions
The Board of Supervisors held that the related transactions of the Company were carried out in strict accordance with the related
transaction rules and agreements in line with the principle of fairness and rationality and did not damage the interests of the
Company and shareholders.
(5) Fulfillment of social responsibilities
In 2020 the Company has made due contributions to economic development and environmental protection actively participated
in public welfare and charity conscientiously fulfilled its due social responsibility and safeguarded the interests of shareholders
customers and employees.
2. Meetings and resolutions of the supervisory meeting in the report period
Four meetings were held in 2020 all of which are on-site meetings. All proposal were approved and disclosed as required:
No. Meeting Date
Convening
method
Topic
1
13th meeting of the
8th Supervisory
Committee
16 April 2020 On-site
1. Supervisory Committee‘s Annual Report 2019;
2. Annual Report 2019 and the Summary;
3. Reviewing the 2020 Q1 Report and Text;
4. Financial Settlement Report 2019;
5. Proposal of dividend distribution for year 2019;
6. The proposal of engaging the auditor for 2020;
7. The Company‘s internal control self-evaluation report 2019;
8. Proposal on changes in accounting estimates for accrued
credit impairment losses;
9. The proposal of re-electing the 9th Supervisory Committee
of the Company:
2
1st meeting of the 9th
Supervisory
Committee
8 May 2020 On-site
Elect the convener of the ninth Board of Supervisors of the
Company.
3
2nd meeting of the 9th
Supervisory
Committee
Thursday
August 20
2020
On-site 2020 Interim Report and the Summary of the Company
4
3rd meeting of the 9th
Supervisory
Committee
19 October
2020
On-site Reviewing the 2020 Q3 Report and Text.(III) The Supervisory Committee's Work Report 2021
In 2021 the Supervisory Committee of the Company will closely focus on the overall business objectives of the Company
actively perform the supervision function of the Supervisory Committee and supervise the standardized operation of the Company in
accordance with the Company Law and other laws and regulations the articles of association and the rules of procedure of the
Supervisory Committee; at the same time it will continuously strengthen its professional quality strive to improve its professional
ability and performance level; and strengthen the supervision of major projects and related parties of the Company pay attention to
the Company's risk management and internal control system construction ensure that the Company implements effective internal
control measures and further promote the Company's standardized operation.
VIII. Assessment and motivation of senior executives
The Company has implemented a remuneration system that combines post wage and performance bonus. The wages and bonus
are determined by on the assessment of senior executives‘ innovation capabilities general quality performance fulfillment of profit
and payment collection targets according to the Company's annual performance assess and performance assess implementation
methods for wholly-owned subsidiaries.IX. Internal control
1. Major problems in internal control discovered in the report period
□ Yes √ No
2. Internal control self-evaluation report
Date of disclosure of the internal
control evaluation report
Tuesday March 23 2021
Disclosure of the internal control
evaluation report
www.cninfo.com.cn
Percentage of assets in the evaluation
scope in the total assets in the
consolidated financial statements
99.55%
Percentage of operation income in the
evaluation scope in the total operation
income in the consolidated financial
statements
98.45%
Standard
Type Financial report Non-financial report
Standard
1. The following problems are considered
major problems: 1. Non-effective control
environment; 2. corrupt practice by directors
supervisor and senior management causing
substantial loss and impacts for the Company;
3. Substantial mistakes in the financial
statements in the period discovered by the
CPA which are not discovered by the internal
control; 4. Ineffective supervision of the
internal control by the Company‘s auditing
department 2. The following problems are
considered significant problems: 1 accounting
policies are selected and used without
complying to widely accepted accounting
I. The following condition indicates
significant problems in the internal control of
non-financial reports: 1. Serious violation
against national laws regulations or
specifications; 2. Serious business system
problems and system ineffectiveness; 3.Major or important problems cannot be
corrected; 4. Lack of internal control and
poor management; 5. Loss of management
personnel or key employees; 6. Safety and
environmental accidents that cause major
adverse impacts; 7. Other situations that
cause major adverse impacts on the
Company. II. The following situations
standards; 2. No anti-corrupt and important
balance system and control measures are
taken; 3. Separate or multiple problems in the
preparation of financial reports which are
serious enough to affecting the truthfulness
and accuracy of the reports; no control system
is established and no related compensation
system is implemented for accounts of
irregular or special transactions 3. Other
problems are considered normal problems.indicate that there may be significant
problems with the internal control: 1.business system problems and system
ineffectiveness; 2. Major or important
problems cannot be corrected; 3. Other
situations that cause major adverse impacts
on the Company III. The following situation
indicate likely normal problems in the
internal control: 1. Problems in the general
business system; 2. Normal problems in the
internal control supervision cannot be
correctly promptly.Standard
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 2. Important problem: 1.
Mistakes affecting 1%-5% of the pre-tax
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.See the recognition standard of the internal
control problems for financial statements
Significant problems in financial
statements
0
Significant problems in non-financial
statements
0
Important problems in financial
statements
0
Important problems in non-financial
statements
0
X. Internal control audit report
√ Applicable □ Inapplicable
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 2020.
Disclosure of internal auditor‘s
report
Disclosed
Date of disclosure of the internal
control audit report
Tuesday March 23 2021
Source of disclosure of the internal
control audit report
www.cninfo.com.cn
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
Chapter XI Information about the Company’s Securities
Bonds publicly issued and listed in a securities exchange immature or not fully paid by the approval date of the annual report
No
Chapter XII Financial Statements
I. Auditor’s report
Type Standard opinion auditor‘s report
Issued on Friday March 19 2021
Auditor RSM Thornton (limited liability partnership)
Report No. RSM[2021) No.361Z0020
CPA names Chen Zhaoxin Zeng Hui Hu Gaosheng
Auditors‘ Report
Auditors’ Report
RSM[2021) No.361Z0020
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 2020 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 2020.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 2020 and the business performance and cash flow of year 2020.
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 Ethics for Chinese Certified Public Accountants we are independent of Fangda Group and perform other professional ethics
duties. 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.
(1) Income recognition
For related information disclosure please refer to Note III 24 Note V 43 and Note XIII 2 of the financial statements.
1. Description
In 2020 the operating revenue of Fangda Group is 2.979 billion yuan of which the revenue of curtain wall and metro platform
screen door accounts for 92.82% 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.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.
(2) Measurement of fair value of investment real estate
For related information disclosure please refer to Note III 15 Note V 16 (2) Note V 51 and Note IX of the financial
statements.
1. Description
As of December 31 2020 the book balance of the investment real estate of Fangda group which adopts the fair value model for
subsequent measurement is 5.628 billion yuan accounting for 47.43% of the total assets. The income from changes in fair value
realized in the current period is 19 million yuan 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.
(III) Measurement of expected credit loss of accounts receivable and contract assets
For related information disclosure please refer to Note III 9 Note V 5 and Note V 10 of the financial statements.
1. Description
As stated in notes 3 9 5 5 and 5 10 of the financial statements as of December 31 2020 the total amount of accounts
receivable of the Company is 805 million yuan the provision for bad debts has been withdrawn is 189 million yuan the total amount
of contract assets of the Company is 1.812 billion yuan the provision for impairment has been withdrawn is 170 million yuan and
the total amount of accounts receivable and contract assets accounts for 22.05% of the 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) Examining the expected credit loss measurement model assessing the rationality of the major assumptions and key
parameters in the model and the appropriateness of the credit risk combination method. Sample the key data of the expected credit
loss model and test the integrity and accuracy of the historical data used by the management.
(3) Review the management's accrual process of bad debt provision for accounts receivable and contract assets impairment
provision including: ① for accounts receivable and contract assets with impairment provision based on aging analysis method
obtain the aging analysis table of accounts receivable and contract assets and the accrual table of bad debt provision prepared by the
management select samples to review the accuracy and calculation of aging division of accounts receivable and contract assets (2)
for the accounts receivable and contract assets with single provision for impairment review the accuracy and rationality of the
information and relevant assumptions used by the management in the testing process and check the provision for impairment for the
accounts receivable and contract assets with long accounting age the accounts receivable and contract assets involving litigation
matters.
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 2020 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 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-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.RSM China
(limited liability partnership)
Chinese CPA: Chen Zhaoxin
Chinese CPA: Zeng Hui
Beijing China Chinese CPA: Hu Gaosheng
Friday March 19 2021
II. Financial statements
Unit for statements in notes to financial statements: RMB yuan
1. Consolidated Balance Sheet
Prepared by: China Fangda Group Co. Ltd.Thursday December 31 2020
In RMB
Item Thursday December 31 2020 31 December 2019
Current asset:
Monetary capital 1459840020.10 1209811978.95
Settlement provision
Outgoing call loan
Transactional financial assets 4051015.05 10330062.18
Derivative financial assets 6974448.22
Notes receivable 207145563.97 305070930.97
Account receivable 616195129.40 1956191307.07
Receivable financing 10727129.28 2954029.00
Prepayment 23845963.67 21327109.18
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance
contracts receivable
Other receivables 162145236.85 139947655.35
Including: interest receivable
Dividend receivable
Repurchasing of financial assets
Inventory 837831790.88 733711143.46
Contract assets 1425040223.27
Assets held for sales
Non-current assets due in 1 year 141681778.35
Other current assets 233223084.51 323765585.90
Total current assets 5128701383.55 4703109802.06
Non-current assets:
Loan and advancement provided
Debt investment
Other debt investment
Long-term receivables
Long-term share equity investment 55902377.95 57222240.83
Investment in other equity tools 17628307.59 20660181.44
Other non-current financial assets 5025186.16 5009728.02
Investment real estate 5634648416.52 5522391984.11
Fixed assets 483161673.38 477332830.92
Construction in process 168626803.01 129988982.86
Productive biological assets
Gas & petrol
Use right assets
Intangible assets 77192825.83 78322265.05
R&D expense
Goodwill
Long-term amortizable expenses 4581487.32 3875198.12
Deferred income tax assets 186649335.96 343349564.70
Other non-current assets 104739453.12 28701802.00
Total of non-current assets 6738155866.84 6666854778.05
Total of assets 11866857250.39 11369964580.11
Current liabilities
Short-term loans 1048250327.62 724618197.34
Loans from Central Bank
Call loan received
Transactional financial liabilities
Derivative financial liabilities 915234.93 96767.62
Notes payable 866224515.42 578816027.44
Account payable 1279434551.95 1190773300.24
Prepayment received 1544655.62 136340104.73
Contract liabilities 265487113.12
Selling of repurchased financial
assets
Deposit received and held for
others
Entrusted trading of securities
Entrusted selling of securities
Employees' wage payable 60188812.64 55847134.20
Taxes payable 358662944.42 17848987.68
Other payables 147615289.31 701432408.28
Including: interest payable
Dividend payable
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liabilities due in 1
year
103359833.57 922346563.72
Other current liabilities 107688425.69 181694574.47
Total current liabilities 4239371704.29 4509814065.72
Non-current liabilities:
Insurance contract provision
Long-term loans 1099411462.35 546501491.56
Bond payable
Including: preferred stock
Perpetual bond
Lease liabilities
Long-term payable
Long-term employees‘ wage
payable
Anticipated liabilities 33425500.13 7793527.16
Deferred earning 9168492.17 10817247.40
Deferred income tax liabilities 1038084099.97 1063833159.00
Other non-current liabilities
Total of non-current liabilities 2180089554.62 1628945425.12
Total liabilities 6419461258.91 6138759490.84
Owner‘s equity:
Share capital 1088278951.00 1123384189.00
Other equity tools
Including: preferred stock
Perpetual bond
Capital reserves 11459588.40 1454191.59
Less: Shares in stock 42748530.12
Other miscellaneous income 2078167.63 -475409.25
Special reserves
Surplus reserve 106783436.96 159805930.34
Common risk provisions
Retained profit 4215005541.52 3898626177.99
Total of owner‘s equity belong to the
parent company
5380857155.39 5182795079.67
Minor shareholders‘ equity 66538836.09 48410009.60
Total of owners‘ equity 5447395991.48 5231205089.27
Total of liabilities and owner‘s interest 11866857250.39 11369964580.11
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua
2. Balance Sheet of the Parent Company
In RMB
Item Thursday December 31 2020 31 December 2019
Current asset:
Monetary capital 204828995.78 175591953.63
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 885849.08 297813.76
Receivable financing
Prepayment 1323361.34 250205.32
Other receivables 1156802204.91 1973381342.74
Including: interest receivable
Dividend receivable
Inventory
Contract assets
Assets held for sales
Non-current assets due in 1 year
Other current assets 1071138.13 877430.41
Total current assets 1364911549.24 2150398745.86
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term share equity investment 1196831253.00 963508253.00
Investment in other equity tools 16392331.44 18604010.22
Other non-current financial assets 30000001.00 48831242.35
Investment real estate 334498436.00 295355002.00
Fixed assets 65157481.98 67361529.52
Construction in process
Productive biological assets
Gas & petrol
Use right assets
Intangible assets 1521975.72 1824589.22
R&D expense
Goodwill
Long-term amortizable expenses 687202.16 934669.73
Deferred income tax assets 26592617.26 44408630.81
Other non-current assets
Total of non-current assets 1671681298.56 1440827926.85
Total of assets 3036592847.80 3591226672.71
Current liabilities
Short-term loans 491503263.89 300442988.19
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 606941.85 606941.85
Prepayment received 927674.32 746761.55
Contract liabilities
Employees' wage payable 3440073.04 3215013.16
Taxes payable 2993196.12 312647.89
Other payables 28068648.70 109837934.17
Including: interest payable
Dividend payable
Liabilities held for sales
Non-current liabilities due in 1
year
520872206.95
Other current liabilities
Total current liabilities 527539797.92 936034493.76
Non-current liabilities:
Long-term loans 70000000.00
Bond payable
Including: preferred stock
Perpetual bond
Lease liabilities
Long-term payable
Long-term employees‘ wage
payable
Anticipated liabilities
Deferred earning
Deferred income tax liabilities 73837511.85 64351075.92
Other non-current liabilities
Total of non-current liabilities 73837511.85 134351075.92
Total liabilities 601377309.77 1070385569.68
Owner‘s equity:
Share capital 1088278951.00 1123384189.00
Other equity tools
Including: preferred stock
Perpetual bond
Capital reserves 360835.52 360835.52
Less: Shares in stock 42748530.12
Other miscellaneous income -371129.71 1287629.38
Special reserves
Surplus reserve 106783436.96 159805930.34
Retained profit 1282911974.38 1236002518.79
Total of owners‘ equity 2435215538.03 2520841103.03
Total of liabilities and owner‘s interest 3036592847.80 3591226672.71
3. Consolidated Income Statement
In RMB
Item 2020 2019
1. Total revenue 2979296410.16 3005749558.66
Incl. Business income 2979296410.16 3005749558.66
Interest income
Insurance fee earned
Fee and commission
received
2. Total business cost 2595803195.98 2601531253.53
Incl. Business cost 2408428192.38 2169176295.27
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 -222323473.74 61963170.98
Sales expense 39303536.85 57584186.20
Administrative expense 141769402.74 170443795.50
R&D cost 141611939.34 59754971.20
Financial expenses 87013598.41 82608834.38
Including: interest cost 84492438.91 84330416.17
Interest income 14654298.98 10770653.40
Add: other gains 15413171.18 7616772.29
Investment gains (―-‖ for loss) 1274767.24 -1909644.55
Incl. Investment gains from
affiliates and joint ventures
-1319862.88 -2152583.08
Financial assets
derecognised as a result of amortized cost
-6148967.92 -8047524.45
Exchange gains ("-" for loss)
Net open hedge gains (―-‖ for
loss)
Gains from change of fair value
(―-― for loss)
19221299.32 42618039.60
Credit impairment ("-" for loss) 29820678.51 -34518434.36
Investment impairment loss
("-" for loss)
52970037.82 218619.24
Investment gains ("-" for loss) -252262.23 -101676.86
3. Operational profit ("-" for loss) 501940906.02 418141980.49
Plus: non-operational income 522504.72 2857177.74
Less: non-operational expenditure 35564536.75 3965865.48
4. Gross profit ("-" for loss) 466898873.99 417033292.75
Less: Income tax expenses 85121657.12 70271688.45
5. Net profit ("-" for net loss) 381777216.87 346761604.30
(1) By operating consistency
1. Net profit from continuous
operation ("-" for net loss)
381777216.87 347246227.22
2. Net profit from discontinuous
operation ("-" for net loss)
-484622.92
(2) By ownership
1. Net profit attributable to the
shareholders of the parent company
382051466.98 347771182.73
2. Minor shareholders‘ equity -274250.11 -1009578.43
6. After-tax net amount of other misc.
incomes
2553576.88 -2691071.26
After-tax net amount of other misc.
incomes attributed to parent's owner
2553576.88 -2691071.26
(1) Other misc. incomes that cannot
be re-classified into gain and loss
-2478954.16 -4025604.80
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
-2478954.16 -4025604.80
4. Fair value change of the
Company's credit risk
5. Others
(2) Other misc. incomes that will be
re-classified into gain and loss
5032531.04 1334533.54
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 5232583.76 1208493.78
6. Translation difference of
foreign exchange statement
-200052.72 126039.76
7. Others
After-tax net of other misc. income
attributed to minority shareholders
7. Total of misc. incomes 384330793.75 344070533.04
Total of misc. incomes attributable
to the owners of the parent company
384605043.86 345080111.47
Total misc gains attributable to the
minor shareholders
-274250.11 -1009578.43
8. Earnings per share:
(1) Basic earnings per share 0.35 0.31
(2) Diluted earnings per share 0.35 0.31
Net profit contributed by entities merged under common control in the report period was RMB0.00 net profit realized by parties
merged during the previous period is RMB0.00.Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua
4. Income Statement of the Parent Company
In RMB
Item 2020 2019
1. Turnover 24471432.70 28729890.94
Less: Operation cost 549538.73 773571.29
Taxes and surcharges 1160449.37 1348489.24
Sales expense
Administrative expense 25339223.31 27178767.85
R&D cost
Financial expenses 25294329.52 38854726.68
Including: interest cost 25864986.10 34985463.24
Interest income 2892457.34 2165024.86
Add: other gains 678793.43 408311.72
Investment gains (―-‖ for loss) 138217642.91 1087133456.16
Incl. Investment gains from
affiliates and joint ventures
Financial assets
derecognised as a result of amortized
cost ("-" for loss)
Net open hedge gains (―-‖ for
loss)
Gains from change of fair
value (―-― for loss)
39143434.00 1784860.63
Credit impairment ("-" for
loss)
-3642.40 40817.64
Investment impairment loss
("-" for loss)
Investment gains ("-" for loss) -2253.68
2. Operational profit (―-‖ for loss) 150161866.03 1049941782.03
Plus: non-operational income 51867.27 26335.45
Less: non-operational expenditure 2592.22 1223230.35
3. Gross profit ("-" for loss) 150211141.08 1048744887.13
Less: Income tax expenses 37629582.04 -8892465.53
4. Net profit (―-‖ for net loss) 112581559.04 1057637352.66
(1) Net profit from continuous
operation ("-" for net loss)
(2) Net profit from discontinuous
operation ("-" for net loss)
5. After-tax net amount of other misc.
incomes
-1658759.09 -2302498.50
(1) Other misc. incomes that
cannot be re-classified into gain and
loss
-1658759.09 -2302498.50
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
-1658759.09 -2302498.50
4. Fair value change of the
Company's credit risk
5. Others
(2) Other misc. incomes that will
be re-classified into gain and loss
1. Other comprehensive
income that can be transferred to profit
or loss under the equity method
2. Fair value change of
other debt investment
3. Gains and losses from
changes in fair value of
available-for-sale financial assets
4. Other credit investment
credit impairment provisions
5. Cash flow hedge reserve
6. Translation difference of
foreign exchange statement
7. Others
6. Total of misc. incomes 110922799.95 1055334854.16
7. Earnings per share:
(1) Basic earnings per share
(2) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Item 2020 2019
1. Net cash flow from business
operations:
Cash received from sales of
products and providing of services
3367623820.15 2648185771.07
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 19606555.37 5311628.37
Other cash received from business
operation
169842621.11 91894481.18
Sub-total of cash inflow from business
operations
3557072996.63 2745391880.62
Cash paid for purchasing products
and services
2350061484.78 1940970927.40
Net increase of client trade and
advance
Net increase of savings in central
bank and brother company
Cash paid for original contract
claim
Net increase in funds dismantled
Cash paid for interest processing
fee and commission
Cash paid for policy dividend
Cash paid to and for the staff 323217126.27 330737740.20
Taxes paid 166354101.79 244444228.84
Other cash paid for business
activities
168730497.89 234523814.95
Sub-total of cash outflow from business
operations
3008363210.73 2750676711.39
Cash flow generated by business
operations net
548709785.90 -5284830.77
2. Cash flow generated by investment:
Cash received from investment
recovery
9127070331.13 7028386864.50
Cash received as investment profit 16736972.11 59694513.21
Net cash retrieved from disposal of
fixed assets intangible assets and other
long-term assets
26937.09 12519211.48
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash
received
Sub-total of cash inflow generated from
investment
9143834240.33 7100600589.19
Cash paid for construction of fixed 124920360.11 201244475.00
assets intangible assets and other
long-term assets
Cash paid as investment 8893591857.72 7292079000.00
Net increase of loan against pledge
Net cash paid for acquiring
subsidiaries and other operational units
61934830.31
Other cash paid for investment 135741.00
Subtotal of cash outflows 9018647958.83 7555258305.31
Cash flow generated by investment
activities net
125186281.50 -454657716.12
3. Cash flow generated by financing
activities:
Cash received from investment 1200000.00
Incl. Cash received from
investment attracted by subsidiaries
from minority shareholders
1200000.00
Cash received from borrowed
loans
2746860091.27 1006523338.17
Other cash received from financing
activities
88312942.36
Subtotal of cash inflow from financing
activities
2748060091.27 1094836280.53
Cash paid to repay debts 2689787953.39 418000000.00
Cash paid as dividend profit or
interests
167293954.61 320109344.09
Incl. Dividend and profit paid by
subsidiaries to minority shareholders
Other cash paid for financing
activities
264136912.25 128428226.25
Subtotal of cash outflow from financing
activities
3121218820.25 866537570.34
Net cash flow generated by financing
activities
-373158728.98 228298710.19
4. Influence of exchange rate changes
on cash and cash equivalents
-1754853.93 722848.92
5. Net increase in cash and cash
equivalents
298982484.49 -230920987.78
Plus: Balance of cash and cash 725269902.90 956190890.68
equivalents at the beginning of term
6. Balance of cash and cash equivalents
at the end of the period
1024252387.39 725269902.90
6. Cash Flow Statement of the Parent Company
In RMB
Item 2020 2019
1. Net cash flow from business
operations:
Cash received from sales of
products and providing of services
25311576.38 21696664.72
Tax refunded 232652.87
Other cash received from business
operation
5923588766.78 3227285187.16
Sub-total of cash inflow from business
operations
5949132996.03 3248981851.88
Cash paid for purchasing products
and services
1296998.99 1693694.68
Cash paid to and for the staff 17120262.06 17754587.59
Taxes paid 9529518.44 4452135.09
Other cash paid for business
activities
5193502562.12 4620509035.31
Sub-total of cash outflow from business
operations
5221449341.61 4644409452.67
Cash flow generated by business
operations net
727683654.42 -1395427600.79
2. Cash flow generated by investment:
Cash received from investment
recovery
3561034532.05 2696000000.00
Cash received as investment profit 138917642.91 1187133456.16
Net cash retrieved from disposal of
fixed assets intangible assets and other
long-term assets
6235.50
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash
received
Sub-total of cash inflow generated from
investment
3699958410.46 3883133456.16
Cash paid for construction of fixed
assets intangible assets and other
long-term assets
58173.88 254183.30
Cash paid as investment 3775526290.70 2725000001.00
Net cash paid for acquiring
subsidiaries and other operational units
Other cash paid for investment
Subtotal of cash outflows 3775584464.58 2725254184.30
Cash flow generated by investment
activities net
-75626054.12 1157879271.86
3. Cash flow generated by financing
activities:
Cash received from investment
Cash received from borrowed
loans
690000000.00 400000000.00
Other cash received from financing
activities
88312942.36
Subtotal of cash inflow from financing
activities
690000000.00 488312942.36
Cash paid to repay debts 1090000000.00 10000000.00
Cash paid as dividend profit or
interests
80238023.19 259087314.23
Other cash paid for financing
activities
142820271.29 88428226.25
Subtotal of cash outflow from financing
activities
1313058294.48 357515540.48
Net cash flow generated by financing
activities
-623058294.48 130797401.88
4. Influence of exchange rate changes
on cash and cash equivalents
237736.33 498258.88
5. Net increase in cash and cash
equivalents
29237042.15 -106252668.17
Plus: Balance of cash and cash
equivalents at the beginning of term
175341953.63 281594621.80
6. Balance of cash and cash equivalents
at the end of the period
204578995.78 175341953.63
7. Statement of Change in Owners’ Equity (Consolidated)
Amount of the Current Term
In RMB
Item
2020
Owners' Equity Attributable to the Parent Company
Minor
shareh
olders‘
equity
Total
of
owners
‘
equity
Share
capita
l
Other equity tools
Capital
reserve
s
Less:
Shares
in
stock
Other
miscell
aneous
incom
e
Specia
l
reserve
s
Surplu
s
reserve
Comm
on risk
provisi
ons
Retain
ed
profit
Others
Subtot
al
Prefe
rred
share
Perpe
tual
bond
Other
s
1. Balance at
the end of last
year
1123
384
189.0
0
1454
191.59
-4754
09.25
15980
5930.
34
3898
62617
7.99
5182
79507
9.67
48410
009.6
0
5231
20508
9.27
Plus:
Changes in
accounting
policies
Correction of
previous errors
Consolidation
of entities under
common control
Others
2. Balance at
the beginning of
current year
1123
384
189.0
0
1454
191.59
-4754
09.25
15980
5930.
34
3898
62617
7.99
5182
79507
9.67
48410
009.6
0
5231
20508
9.27
3. Change
amount in the
current period
(―-― for
decrease)
-351
0523
8.00
10005
396.8
1
42748
530.1
2
2553
576.88
-5302
2493.
38
31637
9363.
53
19806
2075.
72
18128
826.4
9
21619
0902.
21
(1) Total of
misc. incomes
2553
576.88
38205
1466.
98
38460
5043.
86
-2742
50.11
38433
0793.
75
(2) Investment -351 42748 -6428 -1421 7450 -1346
or decreasing of
capital by
owners
0523
8.00
530.1
2
0649.
28
34417
.40
000.00 84417
.40
1. Common
shares invested
by owners
-351
0523
8.00
42748
530.1
2
-6428
0649.
28
-1421
34417
.40
7450
000.00
-1346
84417
.40
2. Capital
contributed by
other equity
instrument
holders
3. Amount of
shares paid and
accounted as
owners' equity
4. Others
(3) Profit
allotment
11258
155.9
0
-6567
2103.
45
-5441
3947.
55
-5441
3947.
55
1. Provision of
surplus reserves
11258
155.9
0
-1125
8155.
90
2. Common risk
provision
3. Distribution
to owners (or
shareholders)
-5441
3947.
55
-5441
3947.
55
-5441
3947.
55
4. Others
(4) Internal
carry-over of
owners' equity
1. Capitalizing
of capital
reserves (or
share capital)
2. Capitalizing
of surplus
reserves (or
share capital)
3. Surplus
reserves used to
cover losses
4. Retained gain
transferred due
to change in set
benefit program
5. Other
miscellaneous
income
6. Others
(5) Special
reserves
1. Provided this
year
2. Used this
period
(6) Others
10005
396.8
1
10005
396.8
1
10953
076.6
0
20958
473.4
1
4. Balance at
the end of this
period
1088
278
951.0
0
11459
588.4
0
42748
530.1
2
2078
167.63
10678
3436.
96
4215
00554
1.52
5380
85715
5.39
66538
836.0
9
5447
39599
1.48
Amount of the Previous Term
In RMB
Item
2019
Owners' Equity Attributable to the Parent Company
Minor
shareho
lders‘
equity
Total of
owners‘
equity
Share
capita
l
Other equity tools
Capital
reserve
s
Less:
Shares
in
stock
Other
miscell
aneous
incom
e
Specia
l
reserve
s
Surplu
s
reserve
Comm
on risk
provisi
ons
Retain
ed
profit
Others
Subtot
al
Prefe
rred
share
Perp
etual
bond
Other
s
1. Balance at
the end of last
year
1155
481
686.0
0
1454
191.59
10831
437.6
6
7382
087.59
12047
5221.
40
3921
22587
2.96
5195
18762
1.88
51951
87621.
88
Plus:
Changes in
accounting
policies
-5166
425.58
52486
0.03
-3993
0304.
63
-4457
1870.
18
-44571
870.18
Correction of
previous errors
Consolidation
of entities
under common
control
Others
2. Balance at
the beginning
of current year
1155
481
686.0
0
1454
191.59
10831
437.6
6
2215
662.01
12100
0081.
43
3881
29556
8.33
5150
61575
1.70
51506
15751.
70
3. Change
amount in the
current period
(―-― for
decrease)
-320
9749
7.00
-1083
1437.
66
-2691
071.26
38805
848.9
1
17330
609.6
6
32179
327.9
7
48410
009.60
80589
337.57
(1) Total of
misc. incomes
-2691
071.26
34777
1182.
73
34508
0111.
47
-1009
578.43
344070
533.04
(2) Investment
or decreasing
of capital by
owners
-320
9749
7.00
-1083
1437.
66
-6695
7886.
36
-8822
3945.
70
-88223
945.70
1. Common
shares invested
by owners
-320
9749
7.00
-1083
1437.
66
-6695
7886.
36
-8822
3945.
70
-88223
945.70
2. Capital
contributed by
other equity
instrument
holders
3. Amount of
shares paid and
accounted as
owners' equity
4. Others
(3) Profit
allotment
10576
3735.
-3304
40573
-2246
76837
-22467
6837.8
27 .07 .80 0
1. Provision of
surplus reserves
10576
3735.
27
-1057
63735
.27
2. Common
risk provision
3. Distribution
to owners (or
shareholders)
-2246
76837
.80
-2246
76837
.80
-22467
6837.8
0
4. Others
(4) Internal
carry-over of
owners' equity
1. Capitalizing
of capital
reserves (or
share capital)
2. Capitalizing
of surplus
reserves (or
share capital)
3. Surplus
reserves used to
cover losses
4. Retained
gain transferred
due to change
in set benefit
program
5. Other
miscellaneous
income
6. Others
(5) Special
reserves
1. Provided this
year
2. Used this
period
(6) Others 49419 49419
588.03 588.03
4. Balance at
the end of this
period
1123
384
189.0
0
1454
191.59
-4754
09.25
15980
5930.
34
3898
62617
7.99
5182
79507
9.67
48410
009.60
52312
05089.
27
8. Statement of Change in Owners’ Equity (Parent Company)
Amount of the Current Term
In RMB
Item
2020
Share
capital
Other equity tools
Capital
reserves
Less:
Shares in
stock
Other
miscella
neous
income
Special
reserves
Surplus
reserve
Retaine
d profit
Others
Total of
owners‘
equity
Preferr
ed
share
Perpet
ual
bond
Others
1. Balance at the
end of last year
11233
84189.
00
360835.
52
128762
9.38
159805
930.34
12360
02518.
79
2520841
103.03
Plus:
Changes in
accounting
policies
Correction of
previous errors
Others
2. Balance at the
beginning of
current year
11233
84189.
00
360835.
52
128762
9.38
159805
930.34
12360
02518.
79
2520841
103.03
3. Change
amount in the
current period
(―-― for
decrease)
-35105
238.00
427485
30.12
-16587
59.09
-53022
493.38
46909
455.59
-8562556
5.00
(1) Total of misc.
incomes
-16587
59.09
11258
1559.0
4
11092279
9.95
(2) Investment or
decreasing of
capital by
-35105
238.00
427485
30.12
-64280
649.28
-1421344
17.40
owners
1. Common
shares invested
by owners
-35105
238.00
427485
30.12
-64280
649.28
-1421344
17.40
2. Capital
contributed by
other equity
instrument
holders
3. Amount of
shares paid and
accounted as
owners' equity
4. Others
(3) Profit
allotment
112581
55.90
-65672
103.45
-5441394
7.55
1. Provision of
surplus reserves
112581
55.90
-11258
155.90
2. Distribution to
owners (or
shareholders)
-54413
947.55
-5441394
7.55
3. Others
(4) Internal
carry-over of
owners' equity
1. Capitalizing
of capital
reserves (or
share capital)
2. Capitalizing
of surplus
reserves (or
share capital)
3. Surplus
reserves used to
cover losses
4. Retained gain
transferred due
to change in set
benefit program
5. Other
miscellaneous
income
6. Others
(5) Special
reserves
1. Provided this
year
2. Used this
period
(6) Others
4. Balance at the
end of this
period
10882
78951.
00
360835.
52
427485
30.12
-371129
.71
106783
436.96
12829
11974.
38
2435215
538.03
Amount of the Previous Term
In RMB
Item
2019
Share
capital
Other equity tools
Capital
reserves
Less:
Shares
in stock
Other
miscella
neous
income
Special
reserves
Surplus
reserve
Retained
profit
Others
Total of
owners‘
equity
Preferr
ed
share
Perpet
ual
bond
Others
1. Balance at
the end of last
year
1155
48168
6.00
360835
.52
108314
37.66
87565
53.46
120475
221.40
5040819
99.00
17783248
57.72
Plus:
Changes in
accounting
policies
-51664
25.58
524860
.03
4723740
.20
82174.65
Correction of
previous errors
Others
2. Balance at
the beginning
of current year
1155
48168
6.00
360835
.52
108314
37.66
35901
27.88
121000
081.43
5088057
39.20
17784070
32.37
3. Change
amount in the
current period
-3209
7497.
00
-10831
437.66
-23024
98.50
38805
848.91
7271967
79.59
74243407
0.66
(―-― for
decrease)
(1) Total of
misc. incomes
-23024
98.50
1057637
352.66
10553348
54.16
(2) Investment
or decreasing of
capital by
owners
-3209
7497.
00
-10831
437.66
-66957
886.36
-88223945
.70
1. Common
shares invested
by owners
-3209
7497.
00
-10831
437.66
-66957
886.36
-88223945
.70
2. Capital
contributed by
other equity
instrument
holders
3. Amount of
shares paid and
accounted as
owners' equity
4. Others
(3) Profit
allotment
105763
735.27
-330440
573.07
-22467683
7.80
1. Provision of
surplus reserves
105763
735.27
-105763
735.27
2. Distribution
to owners (or
shareholders)
-224676
837.80
-22467683
7.80
3. Others
(4) Internal
carry-over of
owners' equity
1. Capitalizing
of capital
reserves (or
share capital)
2. Capitalizing
of surplus
reserves (or
share capital)
3. Surplus
reserves used to
cover losses
4. Retained gain
transferred due
to change in set
benefit program
5. Other
miscellaneous
income
6. Others
(5) Special
reserves
1. Provided this
year
2. Used this
period
(6) Others
4. Balance at
the end of this
period
1123
38418
9.00
360835
.52
12876
29.38
159805
930.34
1236002
518.79
25208411
03.03
III. General Information
1. LITITONG's Profile
China Fangda Group Co. Ltd. (hereinafter referred to as "the Company") was approved in October 1995 by the General Office
of the Shenzhen Municipal People's Government with the letter of Shenfu Office (1995) No. 194 in the original "Shenzhen Fangda
Building Materials Co. Ltd." on the basis of the establishment of the fundraising method. 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 20116. 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 RMB1183642254.00. In August 2018 the Company repurchased
and cancelled 28160568 B-shares. In January 2019 the Company repurchased and cancelled 32097497 B-shares. The Company
repurchased and cancelled in May 2020 and cancelled 35105238 B shares and the existing registered capital is
RMB1088278951.00.
The Company has established a corporate governance structure that comprises shareholders‘ meeting board of directors and
supervisory committee. Currently the Company sets up the President Office Administrative Department HR Department Enterprise
Management Department Financial Department Audit and Supervisory Department Securities Department Technology Innovation
Department and IT Department and has established subsidiaries including Fangda Decoration Fangda Chuangzhi Fangda New
Material Fangda Property and Fangda New Energy.
The business nature and main business operations of the Company and subsidiaries ("the Group") include (1) production and
sales of curtain wall materials design production and installation of construction curtain walls; (2) assembly and production of
subway screen doors; (3) development and operation of real estate projects on land of which rights have been obtained lawfully; (4)
R&D installation and sales of PV devices design and installation of PV power plants.
Date of financial statement approval: This financial statement is approved by the Board of Directors of the Company on March
19 2021.
2. Consolidation Scope and Change
This part of the simplified disclosure is as follows: The Company in the current period includes a total of 27 subsidiaries of
which 4 have been added this year and 2 have been reduced this year. For details please refer to "Note 6 Change of the scope of
merger" and "Note 7 Rights and Interests in Other Subjects".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 2014)
issued by the CSRC.
2. Continuous operation
The Company assessed the continuing operations capability of the Company for the 12 months from the end of the reporting
period. No matters were found that would affect the Company's ability to continue as a going concern. It is reasonable for the
Company to prepare financial statements based on continuing operations.
V. Significant Account Policies and Estimates
The following major accounting policies and accounting estimates shall be formulated in accordance with the accounting
standards of the enterprise. Unmentioned operations are carried out in accordance with the relevant accounting policies in the
enterprise accounting standards.
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. Accounting treatment of the entities under common and different control
(1) Consolidation of entities under common control
The assets and liabilities acquired by the Company in a business combination are measured at the book value of the combined
party in the consolidated financial statements of the ultimate controlling party on the date of combination. Among them if the
accounting policy adopted by the merger party is different from that adopted by the Company before the merger the accounting
policy is unified based on the principle of importance that is the book value of the assets and liabilities of the merger party is
adjusted according to the accounting policy of the Company. If there is a difference between the book value of the net assets acquired
by the Company in the business combination and the book value of the consideration paid first adjust the balance of the capital
reserve (capital premium or equity premium) the balance of the capital reserve (capital premium or equity premium) If it is
insufficient to offset the surplus reserve and undistributed profits will be offset in sequence.See Note V 6 for the accounting treatment method of business combination under the same control through step-by-step
transaction.
(2) Consolidation of entities under different control
All identifiable assets and liabilities acquired by the Company during the merger shall be measured at its fair value on the date
of purchase. Among them if the accounting policy adopted by the merger party is different from that adopted by the Company before
the merger the accounting policy is unified based on the principle of importance that is the book value of the assets and liabilities of
the merger party is adjusted according to the accounting policy of the Company. The merger cost of the Company on the date of
purchase is greater than the fair value of the assets and liabilities recognized by the purchaser in the merger and is recognized as
goodwill. If the merger cost is less than the difference between the identifiable assets and the fair value of the liabilities obtained by
the purchaser in the enterprise merger the merger cost and the fair value of the identifiable assets and the liabilities obtained by the
purchaser in the enterprise merger are reviewed and the merger cost is still less than the fair value of the identifiable assets and
liabilities obtained by the purchaser after the review the difference is considered as the profit and loss of the current period of the
merger.See Note V 6 for the accounting treatment method of business combination under the same control through step-by-step
transaction.
(3) Treatment of related transaction fee in enterprise merger
Agency expenses and other administrative expenses such as auditing legal consulting or appraisal services occurred relating to
the merger of entities are accounted into current income account when occurred. The transaction fees of equity certificates or liability
certificates issued by the purchaser for payment for the acquisition are accounted at the initial amount of the certificates.
6. Preparation of Consolidated Financial Statements
(1) Consolidation scope
The consolidated scope of the consolidated financial statements is determined on a control basis and includes not 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.
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 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) 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.① Merge the assets liabilities owner's rights and interests income expenses and cash flow of parent company and subsidiary
company.② 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.③ 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.④ adjust the special transaction from the angle of enterprise group.
（3） Processing of subsidiaries during the reporting period
① Increase of subsidiaries or business
A. Subsidiary or business increased by business combination under the same control
(A) When preparing the consolidated balance sheet adjust the opening number of the consolidated balance sheet and adjust the
related items of the comparative statement. The same report entity as the consolidated balance sheet will exist from the time of the
final control party.
(B) When preparing the consolidated cash flow statement the cash flows of the subsidiary and the business combination from
the beginning of the current period to the end of the reporting period are included in the consolidated cash flow statement and the
related items of the comparative statement are adjusted which is regarded as the combined report body since the final The controller
has been there since the beginning of control.
(C) When preparing the consolidated cash flow statement the cash flows of the subsidiary and the business combination from
the beginning of the current period to the end of the reporting period are included in the consolidated cash flow statement and the
related items of the comparative statement are adjusted which is regarded as the combined report body since the final The controller
has been there since the beginning of control.
B. Subsidiary or business increased by business combination under the same control
(A) When preparing the consolidated balance sheet the opening number of the consolidated balance sheet is not adjusted.
(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.
② Disposal of subsidiaries or business
A. When preparing the consolidated balance sheet the opening number of the consolidated balance sheet is not adjusted.
B. When preparing the consolidated profit statement the income expense and profit of the subsidiary company and 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.
(4) Special considerations in consolidation offsets
① The long-term equity investment held by a subsidiary company shall be regarded as the inventory shares of the 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.② 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.③ 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.④ 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 .⑤ 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.
(5) Accounting treatment of special transactions
① Purchase minority shareholders' equity
The Company purchases the shares of the subsidiaries owned by the minority shareholders of the subsidiaries. In 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.② Step-by-step acquisition of control of the subsidiary through multiple transactions
A. Enterprise merger under common control through multiple transactions
On the date of the merger the Company determines the initial investment cost of the long-term equity investment in 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 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.If the merging party holds the equity investment before acquiring the control of the merged party and is accounted for
according to the equity method the date of acquiring the original equity and the merging party and the merged party are in the same
party's final control from the later date to the merger date The relevant gains and losses other comprehensive income and other
changes in owner's equity have been confirmed between them and the retained earnings at the beginning of the comparative
statement period should be offset separately.
A. Enterprise merger under common control through multiple transactions
On the merger day in individual financial statements the initial investment cost of the long-term equity investment on the
merger day is based on the book value of the long-term equity investment previously held plus the sum of the additional investment
costs on the merger day.In the consolidated financial statements the equity of the purchaser held prior to the date of purchase is revalued according to
the fair value of the equity at the date of purchase and the difference between the fair value and its book value is credited to the
current investment income; If the shares held by the purchaser prior to the date of purchase involve other consolidated gains under
the equity law accounting the other consolidated gains related thereto shall be converted to the current gains on the date of purchase
with the exception of the other consolidated gains arising from the remeasurement of the net assets or net liabilities of the merged
party. The Company disclosed in the notes the fair value of the equity of the purchased party held before the purchase date and the
amount of related gains or losses remeasured according to the fair value.
(3) The Company disposes of long-term equity investment in subsidiaries without losing control
The parent company partially disposes of the long-term equity investment in the subsidiary company without losing control. In
the consolidated financial statements the disposal price corresponds to the disposal of the long-term equity investment. The
difference between the shares is adjusted for the capital reserve (capital premium or equity premium). If the capital reserve is
insufficient to offset the retained earnings are adjusted.④ The Company disposes of long-term equity investment in subsidiaries and loses control
A. One transaction disposition
If the Company loses control over the Invested Party due to the disposal of part of the equity investment it shall remeasure the
remaining equity according to its fair value at the date of loss of control when compiling the consolidated financial statement. The
sum of the consideration obtained from the disposal of equity and the fair value of the remaining equity minus the difference between
the share of the original subsidiary 's net assets that should be continuously calculated from the purchase date or the merger date
calculated as the loss of control The investment income of the current period.Other comprehensive income and other owner's equity changes related to the equity investment of the atomic company are
transferred to the current profit and loss when the control is lost except for other comprehensive income arising from the
remeasurement of the net benefits or net assets of the defined benefit plan by the investee. .
B. Multi-transaction step-by-step disposition
In consolidated financial statements you should first determine whether a step-by-step transaction is a "blanket transaction".If the step-by-step transaction does not belong to a "package deal" in the individual financial statements for each transaction
before the loss of control of the subsidiary the book value of the long-term equity investment corresponding to each disposal of
equity is carried forward the price received and the disposal The difference between the book value of the long-term equity
investment is included in the current investment income; in the consolidated financial statements it should be handled in accordance
with the relevant provisions of "the parent company disposes of the long-term equity investment in the subsidiary without losing
control."
If a step-by-step transaction belongs to a "blanket transaction" the transaction shall be treated as a transaction that disposes of
the subsidiary and loses control; In individual financial statements the difference between each disposal price before the loss of
control and the book value of the long-term equity investment corresponding to the equity being disposed of is first recognized as
other consolidated gains and then converted to the current loss of control at the time of the loss of control; In the consolidated
financial statements for each transaction prior to the loss of control the difference between the disposition of the price and the
disposition of the investment corresponding to the share in the net assets of the subsidiary shall be recognized as other consolidated
gains and shall at the time of the loss of control be transferred to the loss of control for the current period.Where the terms conditions and economic impact of each transaction meet one or more of the following conditions usually
multiple transactions are treated as a "package deal":
(a) These transactions were concluded at the same time or in consideration of mutual influence.(b) These transactions can only achieve the business result as a whole;
(c) The effectiveness of one transaction depends the occurance of at least another transaction;
(d) A single transaction is not economic and is economic when considered together with other transactions.
(5) Proportion of minority shareholders in factor companies who increase capital and dilute ownership of parent companiesProportion of Others （ minority shareholders in factor companies who increase capital dilute Subsidiaries of parentcompanies. In the consolidated financial statements the share of the parent company in the net book assets of the former subsidiary
of the capital increase is calculated according to the share ratio of the parent company before the capital increase the difference
between the share and the net book assets of the latter subsidiary after the capital increase is calculated according to the share ratio of
the parent company the capital reserve (capital premium or capital premium) the capital reserve (capital premium or capital
premium) is not offset and the retained income is adjusted.
7. Recognition of cash and cash equivalents
Cash refers to cash in stock and deposits that can be used for payment at any time. Cash equivalents refer to investments 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.
8.Foreign exchange business and foreign exchange statement translation
(1) Methods for determining conversion rates in foreign currency transactions
When the Company's foreign currency transactions are initially confirmed they will be converted into the bookkeeping
standard currency at the spot exchange rate on the transaction date.
(2) Methods of conversion of foreign currency currency currency items on balance sheet days
At the balance sheet date foreign currency items are translated on the spot exchange rate of the balance sheet date. The
exchange differences caused by the difference in exchange rates on the balance sheet date and initial recognizing date or previous
balance sheet date are included in the current profits and losses. Non-monetary items accounted in foreign currency and on historical
costs are exchanged with the spot exchange rate on the transaction date. Non-monetary items accounted in foreign currency and on
fair value are exchanged with the spot exchange rate on the determination date of the fair value. The exchange difference between the
accounting standard-currency amount and the original accounting standard-currency amount are included in the current profits and
losses.
(3) Translation of foreign exchange statements
Prior to the conversion of the financial statements of an enterprise's overseas operations the accounting period and policy of
the overseas operations should be adjusted to conform to the accounting period and policy of the enterprise. The financial statements
of the corresponding currency (other than the functional currency) should be prepared according to the adjusted accounting policy
and the accounting period. The financial statements of the overseas operations should be converted according to the following
methods:
① The assets and liabilities items in the balance sheet are translated at the spot exchange rate on the balance sheet date. Except
for the "undistributed profits" items the owner's equity items are translated at the spot exchange rate when they occur.② The income and expense items in the profit statement are converted at the spot exchange rate on the transaction date or the
approximate exchange rate of the spot exchange rate.③ The foreign currency cash flow and the foreign subsidiary's cash flow are converted using the immediate exchange rate 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.
④ During the preparation of the consolidated financial statements the resulting foreign currency financial statement
conversion variance is presented separately under the owner's equity item in the consolidated balance sheet.When foreign operations are disposed of and the control rights are lost the difference in foreign currency statements related to
the overseas operations that are listed in the shareholders' equity items in the balance sheet is transferred to the profit or loss for the
current period either in whole or in proportion to the disposal of the foreign operations.
9. 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:
① The contractual right to receive the cash flows of the financial assets is terminated;
② The financial asset is transferred and meets the following derecognition condition.If the current obligation of a financial liability (or part of it) has been discharged the Company derecognises the financial
liability (or part of the financial liability). When the Company (borrower) and lender enter into an agreement to replace the original
financial liabilities by undertaking new financial liabilities and the contract terms for the new financial liabilities are essentially
different from those for the original one the original financial liabilities will be derecognized and new financial liabilities will be
recognized. Where the Company makes substantial amendments to the contract terms of the original financial liability (or part
thereof) it shall terminate the original financial liability and confirm a new financial liability in accordance with the amended terms.
Financial asset transactions in regular ways are recognized and de-recognized on the transaction date. The conventional sale of
financial assets means the delivery of financial assets in accordance with the contractual terms and conditions at the time set out in
the regulations or market practices. Transaction date refers to the date when the Company promises to buy or sell financial assets.
(2) Classification and subsequent measurement of financial assets
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:
① Financial assets measured at amortized cost
Financial assets that meet the following conditions at the same time are classified as financial assets measured at 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.
② Financial assets measured at fair value and whose changes are included in other comprehensive income
Financial assets that meet the following conditions at the same time are classified as financial assets measured at fair value and
their changes are included in other comprehensive income: The Company's business model for managing this financial asset is to
both target the collection of contractual cash flows and the sale of financial assets. Objective; The contractual terms of the financial
asset stipulate that the cash flow generated on a specific date is only for the payment of principal and interest based on the
outstanding principal amount. For such financial assets fair value is used for subsequent measurement. Except for impairment losses
or gains and exchange gains and losses recognized as current gains and losses changes in the fair value of such financial assets are
recognized as other comprehensive income. Until the financial asset is derecognized its accumulated gains or losses are transferred
to current gains and losses. However the relevant interest income of the financial asset calculated by the actual interest rate method is
included in the current profit and loss.The Company irrevocably chooses to designate a portion of non-tradable equity instrument investment as a financial asset
measured at fair value and whose variation is included in other consolidated income. Only the relevant dividend income is included
in the current profit and loss and the variation of fair value is recognized as other consolidated income.
③ Financial assets measured at fair value with variations accounted into current income account
The above financial assets measured at amortized cost and other financial assets measured at fair value and whose 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:
① Financial liabilities measured at fair value with variations accounted into current income account
Such financial liabilities include transactional financial liabilities (including derivatives that are financial liabilities) 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.② Loan commitments and financial security contractual liabilities
A loan commitment is a promise that the Company provides to customers to issue loans to customers with 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.
③ Financial liabilities measured at amortized cost
After initial recognition other financial liabilities are measured at amortized cost using the effective interest method.
Except in special circumstances financial liabilities and equity instruments are distinguished according to the following
principles:
① 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 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.① Measurement of expected credit losses of accounts receivable
The expected credit loss refers to the weighted average of the credit losses of financial instruments that are weighted by 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.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.
A Accounts receivable/contract assets
Where there is objective evidence of impairment as well as other receivable instruments receivables other receivables
receivables financing and long-term receivables applicable to individual assessments separate impairment tests are performed to
confirm expected credit losses and prepare individual impairment. For notes receivable accounts receivable other receivables
financing of receivables long-term receivables and contract assets for which there is no objective evidence of impairment or when
individual financial assets cannot be assessed at a reasonable cost the Company divides bills receivable accounts receivable other
receivables receivable financing long-term receivables and contract assets into several combinations based on credit risk
characteristics and calculates expected credit losses on the basis of the combination. The basis for determining the combination is as
follows:
The basis for determining the combination of notes receivable is as follows:
Notes Receivable Combination 1 Commercial Acceptance Bill
Notes Receivable Combination 2 Bank Acceptance Bill
For Notes receivable divided into portfolios the Company refers to historical credit loss experience combined with current
conditions and predictions of future economic conditions and calculates through default risk exposure and expected credit loss rate
within the next 12 months or the entire duration Expected credit losses.The basis for determining the combination of accounts receivable is as follows:
Accounts receivable combination 1 Accounts receivable business
Accounts receivable combination 2 Real estate receivable business
Accounts receivable combination 3 Others receivable business
Other receivable portfolio 4 Receivables from related parties within the scope of consolidation
For the accounts receivable divided into a combination the Company refers to the historical credit loss experience combined
with the current situation and the forecast of the future economic situation compiles the account receivable age and the whole
expected credit loss rate table and calculates the expected credit loss.The basis for determining the combination of other receivables is as follows:
Other receivable portfolio 1 Interest receivable
Portfolio of other receivables 2 Dividends receivable
Other combinations of receivables 3 Deposit and margin receivable
Other receivable portfolio 4 Receivable advances
Combination of other receivables 5 Value-added tax receivable is increased and refunded
Other receivable portfolio 6 Receivables from related parties within the scope of consolidation
Other receivables portfolio 7 Other receivables
For other receivables divided into portfolios the Company refers to historical credit loss experience combined with current
conditions and predictions of future economic conditions and calculates through default risk exposure and expected credit loss rate
within the next 12 months or the entire duration Expected credit losses.The basis for determining the combination of receivables financing is as follows:
Receivables financing portfolio 1 bank acceptance bill
For Notes receivable divided into portfolios the Company refers to historical credit loss experience combined with current
conditions and predictions of future economic conditions and calculates through default risk exposure and expected credit loss rate
within the next 12 months or the entire duration Expected credit losses.The basis for determining the portfolio of contract assets is as follows:
Contract assets portfolio 1 conditional collection right of sales
Contract assets portfolio 2 Completed and unsettled project not meeting collection conditions
Contract assets portfolio 3 Quality guarantee deposit not meeting collection conditions
For contract assets divided into portfolios the Company refers to historical credit loss experience combined with current
conditions and predictions of future economic conditions and calculates through default risk exposure and expected credit loss rate
within the next 12 months or the entire duration Expected credit losses.Other debt investment
For other receivables divided into portfolios the Company refers to historical credit loss experience combined with current
conditions and predictions of future economic conditions and calculates through default risk exposure and expected credit loss rate
within the next 12 months or the entire duration Expected credit losses.② Lower credit risk
If the risk of default on financial instruments is low the borrower‘s ability to meet its contractual cash flow obligations in 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.③ 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;
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.
④ 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.⑤ Presentation of expected credit loss measurement
In order to reflect the changes in the credit risk of financial instruments since the initial recognition the Company re-measures
the expected credit losses on each balance sheet date and the increase or reversal of the loss provision 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.
⑥ Canceled
If it is no longer reasonably expected that the contract cash flow of the financial assets will be fully or partially recovered the
book balance of the financial assets will be directly reduced. Such write-off constitute the derecognition of related financial assets.This usually occurs when the Company determines that the debtor has no assets or sources of income that generate sufficient cash
flow to cover the amount that will be written down.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.
① De-identification of transferred financial assets
Those who have transferred almost all risks and rewards in the ownership of financial assets to the transferee or have neither
transferred nor retained almost all the risks and rewards in the ownership of financial assets but have given up control of the
financial assets terminate the confirmation The financial asset.In determining whether control over the transferred financial asset has been waived the actual capacity of the transferor to sell
the financial asset is determined. If the transferor is able to sell the transferred financial assets wholly to a third party that does not
have a relationship with them and has no additional conditions to limit the sale it indicates ds has waived control over the financial
assets.The Company pays attention to the essence of financial asset transfer when judging whether financial asset transfer meets the
condition of financial asset termination.If the overall transfer of financial assets meets the conditions for termination of confirmation the difference between the
following two amounts is included in the current profit and loss:
A. Continuing identification of transferred Book value；
B. The sum of the amount received as a result of the transfer and the amount accrued as a result of the change in the fair value
of the transfer in respect of the termination recognized portion of the amount previously charged directly to the other consolidated
proceeds (the financial assets involved in the transfer are those classified in accordance with Article 18 of Enterprise Accounting
Standard No. 22 - Financial Instruments Recognition and Measurement as measured by the fair value and whose change is charged to
the other consolidated proceeds).If the partial transfer of financial assets meets the conditions for derecognition the book value of the entire transferred financial
assets will be included in the derecognized part and the unterminated part (in this case the retained service assets are regarded as part
of the continued recognition of financial assets) Between them they are apportioned according to their respective relative fair values
on the transfer date and the difference between the following two amounts is included in the current profit and loss:
A. Termination of the book value of the recognized portion on the date of derecognition;
B. The sum of the amount received as a result of the transfer and the amount accrued as a result of the change in the fair value
of the transfer in respect of the termination recognized portion of the amount previously charged to the other consolidated proceeds
(the financial assets involved in the transfer are those classified in accordance with Article 18 of Enterprise Accounting Standard No.
22 - Financial Instruments Recognition and Measurement as measured by the fair value and whose change is charged to the other
consolidated proceeds).
② Continue to be involved in the transferred financial assets
If neither transfer nor retain almost all the risks and rewards of the ownership of financial assets and have not given up control
of the financial assets the relevant financial assets should be confirmed according to the extent of their continued involvement in the
transferred financial assets and the relevant liabilities should be recognized accordingly.The extent to which the transferred financial assets continue to be involved refers to the extent to which the enterprise
undertakes the risk or compensation of the value change of the transferred financial assets.(III) Continuing identification of transferred financial assets
Where almost all risks and remuneration in relation to ownership of the transferred financial assets are retained the whole of
the transferred financial assets shall continue to be recognized and the consideration received shall be recognized as a financial
liability.The financial asset and the recognized related financial liabilities shall not offset each other. In the subsequent accounting
period the enterprise shall continue to recognize the income (or gain) generated by the financial asset and the costs (or losses)
incurred by the financial liability.
(7) Deduction of financial assets and liabilities
Financial assets and financial liabilities should be listed separately in the balance sheet and cannot be offset against each other.
However if the following conditions are met the net amount offset by each other is listed in the balance sheet:
The Company has a statutory right to offset the confirmed amount and such legal right is currently enforceable;
The Company plans to settle the net assets or realize the financial assets and liquidate the financial liabilities at the same time.The transferring party shall not offset the transferred financial assets and related liabilities if it does not meet the conditions for
terminating the recognition.
(8) Recognition of fair value of Finance instrumentsSee Note V 34 (1) for the recognition of fair value of financial assets and liabilities）.
10. Notes receivable
See Section XII V Important Accounting Policies and Accounting Estimates 9. Financial Tools.
11. Account receivable
See Section XII V Important Accounting Policies and Accounting Estimates 9. Financial Tools.The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.6 – Listed Companies Engaged in Decoration Business.
12. Receivable financing
See Section XII V Important Accounting Policies and Accounting Estimates 9. Financial Tools.
13. Other receivables
Methods for Determining Expected Credit Loss of Other Receivables and Accounting Processing Methods
See Section XII V Important Accounting Policies and Accounting Estimates 9. Financial Tools.
14. Inventories
(1) Classification of inventories
Inventory refers to the finished products or commodities held by the Company for sale in daily activities the products in
process of production the materials and materials consumed in the process of production or providing labor services including
entrusted processing materials raw materials products in process materials in transit stored goods low value consumables
development costs development products and contract performance costs etc.
(2) Pricing of delivering inventory
Inventories are measured at cost when procured. Raw materials products in process and commodity stocks in transit are
measured by the weighted average method.The real estate business inventory mainly includes inventory materials products under development completed development
products and development products intended to be sold but temporarily rented out. Inventory is measured at the actual costs when
the fixed assets are obtained 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. The actual costs of the
development product is priced using the separate pricing method.
(3) Inventory system
The Company inventory adopts the perpetual inventory system counting at least once a year the inventory profit and loss
amount is included in the current year's profit and loss.
(4) Recognition of inventory realizable value and providing of impairment provision
On the balance sheet date inventories are accounted depending on which is lower between the cost and the net 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.②In the normal production and operation process the inventory of materials that need to be processed is determined by the
amount of the estimated selling price of the finished product minus the estimated cost to be incurred at the time of completion
estimated sales expenses and related taxes Realize the net value. If the net realizable value of the finished product produced by it is
higher than the cost the material is measured at cost; If the decrease in the price of the material indicates that the net realizable value
of the finished product is lower than the cost the material is measured as the net realizable value and the inventory is prepared for a
decrease based on its difference.
③ Depreciation preparation of inventory is generally based on a single inventory item; For a large number of inventories with
a lower unit price they are accrued by inventory type.④ If the factors affecting the previous write-down of inventory value have disappeared on the balance sheet date the 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
① Low-value consumables are amortized on on-off amortization basis at using.② Packages are amortized on on-off amortization basis at using.
15. Contract assets
Applicable from January 1 2020
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.The Company's determination method and accounting treatment method for the expected credit loss of contract assets are
detailed in Note III 9.
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.
16. Contract costs
Applicable from January 1 2020
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:
① 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;
② This cost increases the Company's future resources for fulfilling its performance obligations.③ The cost is expected to be recovered.If the incremental cost incurred by the Company to obtain the contract is expected to be recovered it shall be recognized as an
asset as the contract acquisition cost.The assets related to the contract cost shall be amortised on the same basis as the income from goods or services related to 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:
① The residual consideration expected to be obtained due to the transfer of goods or services related to the asset;
② The estimated cost to be incurred for the transfer of the relevant goods or services.If the above provision for impairment of assets is subsequently reversed the book value of the asset after reversal shall 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.
17. Long-term share equity investment
The Group's long-term equity investment includes control on invested entities and significant impacts on equity investment.Invested entities on which the Group has significant impacts are associates of the Group.
(1) Basis for recognition of common control and major influence on invested entities
Common control refers to the common control of an arrangement in accordance with the relevant agreement and the relevant
activities of the arrangement must be agreed upon by the participants who share control. In determining whether there is common
control the first step is to determine whether all or a group of participants collectively control the arrangement which is considered
collective control by all or a group of participants if all or a group of participants must act together to determine the activities
associated with the arrangement. Secondly it is judged whether the decision on related activities of the arrangement must be agreed
by the participants who collectively control the arrangement. If there is a combination of two or more parties that can collectively
control an arrangement it does not constitute joint control. When judging whether there is joint control the protective rights enjoyed
are not considered.Major influence refers to the power to participate in decision-making of financial and operation policies of a company but
cannot control or jointly control the making of the policies. When considering whether the Company can impose significant impacts
on the invested entity impacts of conversion of shares with voting rights held directly or indirectly by the investor and voting rights
that can be executed in this period held by the investor and other party into shares of the invested entity should be considered.If the Company directly or through subsidiaries holds more than 20% (inclusive) but less than 50% of the shares with voting
rights of the invested entity unless there is clear evidence proving that the Company cannot participate the decision-making of
production and operation of the invested entity the Company has major influence on the invested entity.
(2) Recognition of initial investment costs
Long-term equity investments formed by merger of enterprises shall be determined in accordance with the following
provisions:
A. In the case of an enterprise merger under the same control where the merging party makes a valuation of the merger by
payment of cash transfer of non-cash assets or undertaking liabilities the share of the book value of the owner's interest in the final
controlling party's consolidated financial statements as the initial investment cost of the long-term equity investment at the date of the
merger. The difference between the initial investment cost of long-term equity investment and the cash paid the transferred non-cash
assets and the book value of the debt assumed shall be adjusted to the capital reserve; if the capital reserve is insufficient to offset the
retained earnings shall be adjusted;
Long-term equity investment generated by enterprise merger: for long-term equity investment obtained by merger of
enterprises under common control the obtained share of book value of the interests of the merged party‘s owner in the consolidate
financial statements on the merger date is costs; for long-term equity investment obtained by merger of enterprises not under
common control the merger cost is the investment cost. Adjust the capital reserve according to the difference between the initial
investment cost of long-term equity investment and the total face value of the issued shares. If the capital reserve is insufficient to
offset or reduce the retained income shall be adjusted;
For merger of entities under different control the merger cost is the fair value of the asset paid liability undertaken and equity
securities issued for exchanging of control power over the entities at the day of acquisition. Agency expenses and other
administrative expenses such as auditing legal consulting or appraisal services occurred relating to the merger of entities are
accounted into current income account when occurred.Long-term equity investments formed by merger of enterprises shall be determined in accordance with the following
provisions:
For long-term equity investment obtained by cash the actually paid consideration is the initial investment cost. Initial
investment costs include expenses taxes and other necessary expenditures directly related to the acquisition of long-term equity
investments;
B. Long-term equity investments acquired from the issuance of interest securities are the initial investment costs based on the
fair value of the issue interest securities;
C. For long-term equity investments obtained through non-monetary asset exchanges if the exchange has commercial
substance and the fair value of the exchanged assets or exchanged assets can be reliably measured the fair value of the exchanged
assets and relevant taxes shall be used as the initial Investment cost the difference between the fair value and book value of the
swapped-out asset is included in the current profit and loss; if the non-monetary asset exchange does not meet the above two
conditions at the same time the book value of the swapped-out asset and relevant taxes will be used as the initial investment cost.
D. Long-term equity investments acquired through debt restructuring determine their recorded value at the fair value of the
waived claims and other costs such as taxes directly attributable to the assets and account for the difference between the fair value
and the book value of the waived claims.
(3) Subsequent measurement and recognition of gain/loss
The Company uses the cost method to measure long-term share equity investment in which the Company can control the
invested entity; and uses the equity method to measure long-term share equity investment in which the Company has substantial
influence on the invested entity.
① 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 recognizeable 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 recoginzied after deduction. The unrealized internal transaction loss between the Company
and the invested entity is the impairment loss of transferred assets and should not be written off.Where substantial influence on invested entities is imposed or joint control is implemented due to increase in investment the
sum of the fair value of the original equity and increased investment on the conversion date is the initial investment cost under the
equity method. If the equity investment originally held is classified as other equity instrument investment the difference between the
fair value and the book value as well as the accumulated gains or losses originally included in other comprehensive income shall be
transferred out of other comprehensive income and included in retained income in the current period when the equity method is
adopted.Where joint control or substantial influence on invested entities is lost due to disposal of part of investment the remaining
equity after the disposal should be treated according to the Enterprise Accounting Standard No.22 – Recognition and Measurement of
Financial Instruments from the date of losing the joint control or substantial influence. The difference between the fair value and
book value should be accounted the profit and loss of the current period. For other misc. incomes of original share equity investment
determined using the equity method when the equity method is no longer used it should be treated based on the same basis of the
treatment of related assets or liability of the invested entities; the other owners' interests related to the original share equity
investment should be transferred to gain/loss of the current period.
(4) Equity investment held for sale
For the remaining equity investments not classified as assets held for sale the equity method is adopted for accounting
treatment.
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
See Note V. 24 for the assets impairment provision method for investment in subsidiaries and joint ventures.XVIII. Investment real estates
(1) Classification of investment real estate
Investment real estates are held for rent or capital appreciation or both. These include inter alia:
① Leased land using right
(2) the right to use the land that is transferred after holding and preparing for the increment.
③ Leased building
(2) Measurement of investment real estate
For investment real estates with an active real estate transaction market and the Company can obtain market price and 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 estates 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.If the cost model is adopted to measure the investment real estate the depreciation or amortization shall be calculated according
to the straight line method after deducting the accumulated impairment and net residual value of the investment real estate cost. For
the method of depreciation of the accrued assets see Note V 24.The types of investment real estate estimated economic useful life and estimated net residual value rate are determined as
follows:
Type Service year
(year)
Residual rate % Annual depreciation
rate %
Houses & buildings 35-50 10 1.80-2.57
19. Fixed assets
(1) Recognition conditions
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods providing services lease or for
operation & management and have more than one accounting year of service life. 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. ② The cost of the fixed assets can be measured reliably. Overhaul cost generated by regular examination on fixed
assets is recognized as fixed assets costs when there is evidence proving that it meets fix assets recognition conditions. If not it will
be accounted into the current gain/loss account.
(2) Depreciation method
Type
Depreciation
method
Service year Residual rate
Annual
depreciation rate %
Houses & buildings Average age 35-50 10% 1.8%-2.57%
Mechanical
equipment
Average age 10 10% 9%
Transportation
facilities
Average age 5 10% 18%
Electronics and
other devices
Average age 5 10% 18%
PV power plants Average age 20 5% 4.75%
(3) Recognition and pricing of financing leased fixed assets
The Company transfers all the risks and rewards attached to the asset at substantially transferred to the lessee it is recognized
as financial leasing and the others are operational leasing. The cost of a fixed asset acquired by a financial lease is determined on the
basis of the lower of the fair value of the leased asset at the date of the lease and the present value of the minimum leased payment.The Group adopts the depreciation policy same as the self-owned fixed assets to made provision for depreciation of leased assets.
Depreciation shall be accrued within the life of the leased assets if it is possible to reasonably determine that the leased assets will be
entitled to ownership upon the expiry of the lease term; Depreciation is accrued within a shorter period between the lease term and
the service life of the leased asset if it is unable to reasonably determine that the leased asset ownership can be acquired at the end of
the lease term.XX. Construction in process
(1) Construction in progress is accounted for by project classification.
(2) Standard and timing for transferring construction in process into fixed assets
The full expenditure incurred on the construction-in-progress project as a fixed asset is recorded as the value of the asset before
the asset is constructed to the intended usable state. This includes construction costs the original cost of equipment other necessary
expenditures incurred in order to enable the construction works to reach the intended usable status and the borrowing costs incurred
for the specific borrowing of the project and the general borrowing expenses incurred before the assets reach the intended usable
status. Construction in process will be transferred to fixed assets when it reaches the preset service condition. The fixed assets that
have reached the intended usable state but have not been completed shall be transferred to the fixed assets according to the estimated
value according to the estimated value according to the estimated value according to the project budget cost or actual project cost
etc. The depreciation of the fixed assets shall be accrued according to the Company's fixed assets depreciation policy. The original
estimated value shall be adjusted according to the actual cost after the completion.XXI. Borrowing expenses
(1) Recognition principles for capitalization of borrowing expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing or production of asset satisfying the
conditions of capitalizing are capitalized and accounted as cost of related asset.
(1) Asset expenditure has occurred;
② The borrowing expense has already occurred;
③ Purchasing or production activity which is necessary for the asset to reach the useful status has already started.Other interest on loans discounts or premiums and exchange differences are included in the income and loss incurred in 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.
(2) Calculation of the capitalization amount of borrowing expense
Interest expenses generated by special borrowings less the interests income obtained from the deposit of unused borrowings or
investment gains from temporary investment is capitalized; the capitalization amount for general borrowing is determined based on
the capitalization rate which is the exceeding part of the accumulative assets expense over weighted average of the assets expense of
the special borrowing/used general borrowing.If the assets that are constructed or produced under the condition of capitalization occupy the general borrowing the interest
amount to be capitalized in the general borrowing shall be calculated and determined by multiplying the capital rate of the general
borrowing by the weighted average of the asset expenditure of the accumulated assets whose expenditure exceeds that of the
specialized borrowing. The capitalization ratio is the weighted average interest rate of general borrowings.XXII. Intangible assets
(1) Pricing method service life and depreciation test
(1) Pricing of intangible assets
Recorded at the actual cost of acquisition.
Amortization of intangible assets
① Useful life of intangible assets with limited useful life
Item Estimated useful
life
Basis
Land using right Term Use right assets
Trademarks and patents 10 Reference to determine the lifetime of a company for
which it can bring economic benefits
Proprietary technology 10 Reference to determine the lifetime of a company for
which it can bring economic benefits
Software 5. 10 years Reference to determine the lifetime of a company for
which it can bring economic benefits
At the end of each year the Company will reexamine the useful life and amortization basis of intangible assets with 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.
③ Amortization of intangible assets
For intangible assets with limited service life the Company shall determine their service life at the time of acquisition and
shall use the straight line method system to reasonably amortize their service life and the amortization amount shall be included in
the profit and loss of the current period according to the beneficial items. The specific amortization amount is the amount after the
cost is deducted from the estimated residual value. For fixed assets for which depreciation provision is made the depreciation rate
will be determined after the accumulative depreciation provision amount is deducted. The residual value of an intangible asset with
limited useful life is treated as zero except where a third party undertakes to purchase the intangible asset at the end of its useful life
or to obtain expected residual value information based on the active market which is likely to exist at the end of its useful life.Intangible assets with uncertain service life will not be amortized. At the end of each year the useful life of intangible assets
with uncertain useful life is reviewed and if there is evidence that the useful life of intangible assets is limited the useful life is
estimated and the system is reasonably amortized within the expected useful life.
(2) Accounting policies for internal R&D expenses
Specific standard for distinguish between research and development stage
① The Company takes the information and related preparatory activities for further development activities as the research
stage and the intangible assets expenditure in the research stage is included in the current profit and loss period.② The development activities carried out after the Company has completed the research stage as the development stage.Specific conditions for capitalization of expenditures in the development phase
Expenditures in the development phase can be recognized as intangible assets only when the following conditions are met:
A. It is technically feasible to complete the intangible asset so that it can be used or sold;
B. Have the intention to complete the intangible asset and use or sell it;
C. The way intangible assets generate economic benefits including the ability to prove that the products produced by the
intangible assets exist in the market or the intangible assets themselves exist in the market and the intangible assets will be used
internally which can prove their usefulness;
D. Have sufficient technical financial and other resource support to complete the development of the intangible asset and have
the ability to use or sell the intangible asset;
E. The expenditure attributable to the development stage of the intangible asset can be reliably measured.
23. Assets impairment
The Group uses the cost mode to continue measuring the assets impairment to investment real estate fixed assets construction
in progress intangible assets and goodwill (except for the inventories investment real estate measured by the fair value mode
deferred income tax assets and financial assets). The method is determined as follows:
The Company judges whether there is a sign of impairment to assets on the balance sheet day. If such sign exists the Company
estimates the recoverable amount and conducts the impairment test. Impairment test is conducted annually for goodwill generated by
mergers and intangible assets that have not reached the useful condition no matter whether the impairment sign exists.The recoverable amount is determined by the higher of the net of fair value minus disposal expense and the present value of the
predicted future cash flow. The Company estimates the recoverable amount on the individual asset item basis; whether it is hard to
estimate the recoverable amount on the individual asset item basis determine the recoverable amount based on the asset group that
the assets belong to. The assets group is determined by whether the main cash flow generated by the Group is independent from those
generated by other assets or assets groups.When the recoverable amount of the assets or assets group is lower than its book value the Company writes down the book
value to the recoverable amount the write-down amount is accounted into the current income account and the assets impairment
provision is made.
For goodwill impairment test the book value of goodwill generated by mergers is amortized through reasonable measures since
the purchase day to related asset groups; those cannot be amortized to related assets groups are amortized to related combination of
asset groups. The related asset groups or combination of asset groups refer to those that can benefit from the synergistic effect of
mergers and must not exceed to the reporting range determined by the Company.When the impairment test is conducted if there is sign of impairment to the asset group or combination of asset groups related
to goodwill first perform impair test for asset group or combination of asset groups without goodwill and calculate the recoverable
amount and recognize the related impairment loss. Then conduct impairment test on those with goodwill compare the book value
with recoverable amount. If the recoverable amount is lower than the book value recognize the impairment loss of the goodwill.Once recognized the asset impairment loss cannot be written back in subsequent accounting period.
24. Long-term amortizable expenses
The long-term outstanding expenses shall be accounted for all expenses incurred by the Company but which shall be borne by
the current and future periods for more than one year and the long-term outstanding expenses shall be amortized averagely within the
benefit period.
25. Contract liabilities
See 16. Contract assets in section 12 V. Important Accounting Policies and Accounting Estimates for details.
26. Staff remuneration
(1) Accounting of operational leasing
① Basic salary of employees (salary bonus allowance subsidy)
In the accounting period for which the staff and workers provide services the Company shall confirm the actual short-term
remuneration as liabilities and shall account for the current income and loss except as required or permitted by other accounting
standards.
② 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.③ Social insurance premiums and housing accumulation funds such as health insurance premiums work injury premiums
birth insurance premiums trade union funds and staff and education funds
The Company pays the medical insurance premiums work injury insurance premiums birth insurance premiums etc. 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.④ 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.⑤ Short-term profit share program
If the profit-sharing plan meets the following conditions at the same time the Company shall confirm the salary payable 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 Group's post-employment benefit plan is defined contribution plan. Defined contribution plans include basic endowment
insurance unemployment insurance etc. During the accounting period when employees provide services for them the Company
shall recognize the deposit amount calculated according to the defined deposit plan as liabilities and include it in the current profits
and losses or related asset costs.
(3) Accounting of dismiss welfare
If the Company provides termination benefits to employees the employee compensation liabilities arising from the termination
benefits shall be recognized at the earliest of the following two and shall be included in the current profit and loss:
① An enterprise may not unilaterally withdraw the resignation benefits provided for by the dismissal plan or reduction
proposal;
② When the enterprise recognizes the costs or expenses related to the reorganization involving the payment of resignation
benefits.
(4) Accounting of other long-term staff welfare
27. Anticipated liabilities
(1) Recognition standards of anticipated liabilities
When responsibilities occurred in connection to contingent issues and all of the following conditions are satisfied they are
recognized as expectable liability in the balance sheet:
① This responsibility is a current responsibility undertaken by the Company;
② Execution of this responsibility may cause financial benefit outflow from the Company;
③ Amount of the liability can be reliably measured.
(2) Measurement of anticipated liabilities
Expected liabilities are initially measured at the best estimation on the expenses to exercise the current responsibility and with
considerations to the relative risks uncertainty and periodic value of currency. On each balance sheet date review the book value of
the estimated liabilities. Where there is conclusive evidence that the book value does not reflect the current best estimate the book
value is adjusted to the current best estimate.
28. Revenue
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.6 – Listed Companies Engaged in Decoration Business.
Applicable from January 1 2020
(1) General principles
Income is the total inflow of economic benefits formed in the daily activities of the Company which will lead to the increase of
shareholders' equity and has nothing to do with the capital invested by shareholders.The Company has fulfilled the performance obligation in the contract that is the revenue is recognized when the customer
obtains the control right of relevant goods. To obtain the control right of the relevant commodity means to be able to dominate the
use of the commodity and obtain almost all the economic benefits from it.If there are two or more performance obligations in the contract the Company will allocate the transaction price to each single
performance obligation according to the relative proportion of the separate selling price of the goods or services promised by each
single performance obligation on the start date of the contract and measure the income according to the transaction price allocated to
each single performance obligation.The transaction price refers to the amount of consideration that the Company is expected to be entitled to receive due to the
transfer of goods or services to customers excluding the amount collected on behalf of a third party. When determining the contract
transaction price if there is a variable consideration the Company shall determine the best estimate of the variable consideration
according to the expected value or the most likely amount and include it in the transaction price with the amount not exceeding the
accumulated recognized income when the relevant uncertainty is eliminated which is most likely not to have a significant reversal. If
there is a significant financing component in the contract the Company will determine the transaction price according to the amount
payable in cash when the customer obtains the control right of the commodity. The difference between the transaction price and the
contract consideration will be amortised 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:
① When the customer performs the contract in the Company he obtains and consumes the economic benefits brought by the
Company's performance;
② Customers can control the goods under construction during the performance of the contract;
③ The goods produced by the Company in the process of performance have irreplaceable uses and the Company has 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 performance schedule of providing services according to the input 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:
① 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;
② The Company has transferred the legal ownership of the goods to the customer that is the customer has the legal
ownership of the goods;
③ The Company has transferred the goods in kind to the customer that is the customer has possessed the goods in kind;
④ The Company has transferred the main risks and rewards of the ownership of the goods to the customer that is the
customer has obtained the main risks and rewards of the ownership of the goods;
⑤ The product has been accepted by the customer.Sales return clause
For the sales with sales return clauses when the customer obtains the control right of the relevant goods the Company 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 oftransfer（ The balance after deducting the value of the returned goods is recognized as an asset that is the cost of return receivablewhich is carried forward by deducting the net cost of the above assets according to the book value of the transferred goods at the time
of transfer. On each balance sheet date the Company re estimates the return of future sales and re measures the above assets and
liabilities.Warranty obligations
According to the contract and legal provisions the Company provides quality assurance for the goods sold and the projects
constructed. For the guarantee quality assurance to ensure that the goods sold meet the established standards the Company conducts
accounting treatment in accordance with the accounting standards for Business Enterprises No. 13 - contingencies. For the service
quality assurance which provides a separate service in addition to guaranteeing that the goods sold meet the established standards the
Company takes it as a single performance obligation allocates part of the transaction price to the service quality assurance according
to the relative proportion of the separate selling price of the goods and service quality assurance and recognizes the revenue when
the customer obtains the service control right. When evaluating whether the quality assurance provides a separate service in addition
to assuring customers that the goods sold meet the established standards the Company considers whether the quality assurance is a
statutory requirement the quality assurance period and the nature of the Company's commitment to perform the task.
Customer consideration payable
If there is consideration payable to the customer in the contract unless the consideration is to obtain other clearly
distinguishable goods or services from the customer the Company will offset the transaction price with the consideration payable
and offset the current income at the later time of confirming the relevant income or paying (or promising to pay) the customer's
consideration.
Contractual rights not exercised by customers
If the Company advances sales of goods or services to customers the amount shall be recognized as liabilities first and then
converted into income when relevant performance obligations are fulfilled. When the Company does not need to return the advance
payment and the customer may give up all or part of the contract rights if the Company expects to have the right to obtain 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:
① 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;
② 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;
③ 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:
① Commodity sales contract
The sales contract between the Company and customers includes the performance obligation of transferring curtain wall
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 Ccompany 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;
Based on the comprehensive consideration of the following factors the revenue of export products is recognized at the time
when the customer obtains the control of the goods: the company has declared the products according to the contract obtained the
bill of lading collected the payment for goods or obtained the receipt certificate and the relevant economic benefits are likely to flow
in the main risks and rewards of the ownership of the goods have been transferred and the legal ownership of the goods has been
transferred Move.② Service contract
The service contract between the Company and its customers includes the performance obligations of metro platform screen
door operation and 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.
③ 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 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. On the balance sheet date the
Company re estimates the progress of completed or completed services to reflect the changes in performance.
④ Real estate sales contract
The income of the Company's real estate development business is recognized when the control of the property is transferred to
the customer. Based on the terms of the sales contract and the legal provisions applicable to the contract the control of the property
can be transferred within a certain period of time or at a certain point in time. Only if the goods produced by the Company during the
performance of the contract have irreplaceable uses and the Company has the right to collect payment for the cumulative
performance part that has been completed during the entire contract period the performance obligation has been completed during
the contract period. The progress is recognized as revenue within a period of time and the progress of the completed performance
obligations is determined in accordance with the ratio of the contract costs actually incurred to complete the performance obligations
to the estimated total cost of the contract. Otherwise the income is recognized when the customer obtains the physical ownership or
legal ownership of the completed property and the Company has obtained the current right 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.The following revenue accounting policies are applicable to the year 2019 and before
1. Sales of goods goods Income
When all of the following conditions are satisfied the sales of goods are recognized as sales income according to the contract
amount received or receivable from the buyer: (1) Main risks and rewards attached to the ownership of the goods have been
transferred to the buyer; (2) No succeeding power of administration or effective control is reserved which are usually attached to
ownership; (3) Amount received can be reliably measured; (4) Related financial benefit may inflow to the Company; (5) Relative
costs occurred or will occur can be reliably measured.
(2) Basis for of revenue from providing of labor services
If they are not in the same year then use the estimation on percentage basis when it is possible. The completion percentage is
the costs occurred on the total cost.The reliable estimation of the result of providing of labor service must meet the following conditions: A. the revenue can be
reliably measured; B. the economic benefit is very likely to flow into the Company; C. the completion can be determined reliably; D.costs incurred or will be incurred can be reliably measured.The Company shall determine the total revenue of the Services provided under the Contract or Agreement Price received or
receivable unless the Contract or Agreement Price received or receivable is not fair. On the balance sheet date the total income of
the labor service provided in the current period shall be recognized by multiplying the total income of the labor service provided by
the balance sheet by the amount of the accumulated income of the service provided in the previous accounting period. At the same
time the total estimated cost of the labor service provided is multiplied by the completion schedule by the amount of the accumulated
confirmed labor service cost in the previous accounting period to carry forward the current labor service cost.If the results of the labor service transaction provided on the balance sheet date cannot be reliably estimated the following
cases shall be dealt with:
If the cost of the services already incurred is expected to be compensated it shall be recognized as the amount of the costs
already incurred
The income from providing services shall be carried forward to the cost of services at the same amount.If the labor cost incurred is not expected to be compensated the labor cost already incurred is included in the current profit and
loss and the income from providing labor services is not recognized.
(3) Asset tenure income
When the economic benefits related to the transaction are likely to flow into the enterprise and the amount of income can be
measured reliably the amount of income from the transfer of asset use rights is determined in the following cases:
The amount of interest income shall be determined according to the time and the actual interest rate at which the money funds
of the enterprise are used by others.The amount of royalty income shall be determined in accordance with the time and method of charge agreed upon in the
relevant contract or agreement
(4) Construction contracts Income
On the balance sheet day the Group recognizes the contract income and costs using the completion percentage method if the
result of the construction contract can be reliably estimated. The percentage of completion method recognizes income and costs
based on contract completion schedule. The competition percentage is determined by the share of the costs incurred in the total cost.
If not such contracts are treated differently. If the contract cost can be recovered the revenue is recognized according to the
actual contract costs that can be recovered and the contract cost is recognized as the current expense; if not the contract cost is
recognized as the current expense and no revenue is recognized.If the estimated total costs exceed the total revenue the Group recognizes the estimated loss as the current expense.
(5) Specific revenue recognition method
① Construction contracts
Metro screen door projects of the Company and Shenzhen Fangda Automatic System and curtain wall project of Fangda Jianke
are individual construction contracts. They are accounted by the following means:
Construction contracts completed within a fiscal year are recognized for their income and cost upon completion.
Income and expenses of the construction contracts carried over-year are recognized on percentage basis at balance sheet day
when all of the following conditions are satisfied: contract income can be reliably measured relative financial benefit can inflow to
the Company; progress of the project and costs to complete the contract can be reliably recognized; cost occurred to complete the
contract can be clearly distinguished and reliably measured which enables comparing of actual cost with predicted cost.
Contract costs are direct and indirect expenses occurred since the date when the contract is engaged till the completion day. The
competition percentage is determined by the share of the costs incurred in the total cost.
Construction contracts completed in current term are recognized for income according to the actual total income of the contract
less income recognized in previous terms; meanwhile the total costs of the contract less costs recognized in previous terms are
recognized as current contract costs. If the total contract cost is predicted to be greater than the predicted total income the predicted
loss shall be recognized as current cost instantly.Parts of the curtain wall project under Fangda Jianke are outsourced and administrative fees are collected at the agreed rate.
For these construction contracts income will be recognized when ongoing payment for the project is received and corresponding
costs are transferred.② Sales product
Revenue of products for domestic sales is recognized when the Group delivers the products and receives the sales payment or
obtains the payment voucher; revenue for products for overseas sales is recognized at departure of the products.③ Real estate sales
Income from real estate sales is recognized when the contract is signed and performed project is developed and completed with
the record for the completion acceptance the handover procedure is completed or property is deemed accepted by the customer as
per the property sales contract the payment is received or it is believed that the payment can be received and the cost can be
measured reliably.
Accounting policies used in revenue recognition and measurement
Differences in revenue recognition accounting policies caused by different business models of similar businesses
29. Government subsidy
(1) Government subsidy
Government subsidies are recognized when the following conditions are met:
① Requirements attached to government subsidies;
② The Company can receive government subsidies.
(2) Government subsidy
When a government subsidy is monetary capital it is measured at the received or receivable amount. None monetary capital are
measured at fair value; if no reliable fair value available recognized at RMB1.
(3) Recognition of government subsidies
① Assets-related
Government subsidies related to assets are obtained by the Company to purchase build or formulate in other manners
long-term assets; or subsidies related to benefits. If the asset-related government subsidy is recognized as deferred gain should 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.③ 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.④ Government subsidy refund
When a confirmed government subsidy needs to be returned the book value of the asset is adjusted against the book value 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.
30. 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;
In the event of temporary discrepancy of deductible investment related to subsidiaries joint ventures and joint ventures and
meeting the following two conditions the amount of impact (talent) on income tax shall be deemed as deferred income tax assets:
A. Temporary discrepancies are likely to be reversed in the foreseeable future;
B. In the future it is likely to obtain taxable income that can be used to offset the deductible temporary differences;
On the balance sheet date if there is conclusive evidence that sufficient taxable income is likely to be obtained in the future to
offset the deductible temporary differences the deferred income tax assets that have not been recognized in the previous period are
recognized.On the balance sheet day the Company re-examines the book value of the deferred income tax assets. If it is unlikely to have
adequate taxable proceeds to reduce the benefits of the deferred income tax assets less the deferred income tax assets‘ book value.When there is adequate taxable proceeds the lessened amount will be reversed.
(2) Deferred income tax assets
All provisional differences in taxable income of the Company shall be measured on the basis of the estimated income tax rate
for the period of transfer-back and shall be recognized as deferred income tax liabilities except that:
At the same time the impact on income tax of deductible temporary discrepancies resulting the initial recognition of assets or
liabilities in transactions or matters with the following characteristics is inconclusive as deferred income tax Liabilities:
A. Initial recognition of goodwill;
B. Initial recognition of goodwill or of assets or liabilities generated in transactions with the following features: the transaction
is not a merger and the transaction does not affect the accounting profit or taxable proceeds;
② 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.
② Amount of shares paid and accounted as owners' equity
Except for the adjustment goodwill generated by mergers or deferred income tax related to transactions or events 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.
③ Compensation for losses and tax deductions
A. Compensable losses and tax deductions from the Company's own operations
Deductible losses refer to the losses calculated and determined in accordance with the provisions of the tax law that are allowed
to be made up with the taxable income of subsequent years. The uncovered losses (deductible losses) and tax deductions that can be
carried forward in accordance with the tax law are treated as deductible temporary differences. When it is expected that sufficient
taxable income is likely to be obtained in the future period when it is expected to be available to make up for losses or tax deductions
the corresponding deferred income tax assets are recognized within the limit of the taxable income that is likely to be obtained while
reducing the current period Income tax expense in the income statement.
B. Compensable uncovered losses of the merged company due to business merger
In a business combination if the Company obtains the deductible temporary difference of the purchased party and does not
meet the deferred income tax asset recognition conditions on the purchase date it shall not be recognized. Within 12 months after the
purchase date if new or further information is obtained indicating that the relevant conditions on the purchase date already exist and
the economic benefits brought about by the temporary difference are expected to be deducted on the purchase date confirm the
relevant delivery. Deferred income tax assets while reducing goodwill if the goodwill is not enough to offset the 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.④Temporary difference caused by merger offset
If there is a temporary difference between the book value of assets and liabilities in the consolidated balance sheet and 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.⑤ Share payment settled by equity
If the tax law provides for allowable pre-tax deduction of expenses related to share payment within the period for which the
cost and expense are recognized in accordance with the accounting standards the Company shall calculate the tax basis and
temporary discrepancy based on the estimated pre-tax deduction amount at the end of the accounting period and confirm the relevant
deferred income tax if it meets the conditions for confirmation. Of these the amount that can be deducted before tax in the future
exceeds the cost related to share payment recognized in accordance with the accounting standards and the excess income tax shall be
directly included in the owner's equity.
31. Leasing
(1) Accounting of operational leasing
① The Company as the leasor: Rentals from operational leasing are recognized as current gains on straight basis to the periods
of leasing. Where the lessor provides a lease-free period the total rent shall be apportioned within the whole lease-free period
without deducting the lease-free period according to the straight line method or other reasonable method and the rent-free period
shall be recognized as well as the corresponding liabilities. People If the charterer undertakes certain expenses the Company shall
distribute the rent Expense balance deducted from the total rent income during the lease term.Initial direct expenses are recorded to current income account. In the event of an agreement or rent the current profit and loss
shall be included in the actual occurrence.② When the Company is the operating lessor the rent received shall be recognized as income within the lease term by the
straight line method. Where the lessor provides a lease-free period the total rent shall be apportioned within the whole lease-free
period without deducting the lease-free period according to the straight line method or other reasonable method and the rent-free
period shall be recognized as well as the corresponding liabilities. If the charterer undertakes certain expenses the Company shall
distribute the rent income balance deducted from the total rent income during the lease term.Initial direct expenses are recorded to current income account. Larger amounts shall be capitalized and included in current
profits and losses in installments on the same basis as the confirmed rental income during the entire operating lease period. In the
event of an agreement or rent the current profit and loss shall be included in the actual occurrence.
(2) Accounting of operational leasing
None
32. Other significant accounting policies and estimates
(1) Measurement of Fair Value
Fair value refers to the amount of asset exchange or liabilities settlement by both transaction parties familiar with the 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.
① 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 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.
②Fair value hierarchy
This company divides the input value used in fair value measurement into three levels and first uses the first level input value
then uses the second level input value and finally uses the third level input value. First level: quotation of same assets or liabilities in
an active market (unadjusted) The second level input value is a directly or indirectly observable input value of the asset or liability in
addition to the first level input value. The input value of the third level is the unobservable input value of the related asset or liability.
(2) Accounting of hedging
(2.1) Classification of inventories
The Company's hedge is a cash flow hedge.
Cash flow hedging refers to the hedging of cash flow risk. The change in cash flow is derived from specific risks 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.
(2.2) Hedging tools and hedged projects
Hedging means a financial instrument designated by the Company for the purpose of hedging whose fair value or cash flow
variation is expected to offset the fair value or cash flow variation of the hedged item including:
① Financial liabilities measured at fair value with variations accounted into current income account Check-out options 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.② 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:
① Confirmed assets or liabilities.
② 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.
③ Expected transactions that are likely to occur. Anticipated transactions refer to transactions that have not yet been
committed but are expected to occur.④ Net investment in overseas operations.The above-mentioned project components refer to the parts that are less than the overall fair value or cash flow changes of the
project. The Company designates the following project components or their combinations as hedged items:
① The part of the change in fair value or cash flow (risk component) that is only caused by one or more specific risks in 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.② One or more selected contractual cash flows.③ The component of the nominal amount of the project that is the specific part of the whole amount or quantity of the project
may be a certain proportion of the whole project or may be a certain level of the whole project. If a certain level includes early
repayment rights and the fair value of the early repayment rights is affected by changes in the risk of the hedge the level shall not be
designated as the hedged item of the fair value hedge but in the measurement of the hedged item except when the fair value has
included the influence of the prepayment right.
(2.3) 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.
(2.4) Revenue the of revenue recognition and measurement
If the strict conditions of the hedging accounting method are satisfied the following methods shall be applied:
Cash flow hedging
The part of hedging tool gains or losses that is valid for hedging is recognized as other comprehensive income as a cash flow
hedging reserve and the part that is invalid for hedging (that is other gains or losses after deducting other comprehensive income)
are counted Into the current profit and loss. The amount of cash flow hedging reserve is determined according to the lower of the
absolute amounts of the following two items: ①accumulated 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.
(3) Repurchase of the Company‘s shares
(3.1) In the event of a reduction in the Company's share capital as approved by legal procedure the Company shall reduce the
share capital by the total amount of the written-off shares adjust the owner's equity by the difference between the price paid by the
purchased stocks (including transaction costs) and the total amount of the written-off shares offset the capital reserve (share capital
premium) surplus reserve and undistributed profits in turn; A portion of a capital reserve (share capital premium) that is less than the
total face value and less than the total face value.
(3.2) The total expenditure of the repurchase shares of the Company which is managed as an inventory share before they are
cancelled or transferred is converted to the cost of the inventory shares.
(3.3) Increase in the capital reserve (capital premium) at the time of transfer of an inventory unit the portion of the transfer
income above the cost of the inventory unit; Lower than the inventory stock cost the capital reserve (share capital premium) surplus
reserve undistributed profits in turn.
(4) Significant accounting judgment and estimate
The Group continuously reviews significant accounting judgment and estimate adopted for the reasonable forecast of future
events based on its historical experience and other factors. Significant accounting judgment and assumptions that may lead to major
adjustment of the book value of assets and liabilities in the next accounting year are listed as follows:
Classification of financial assets
The major judgements involved in the classification of financial assets include the analysis of business model and contract cash
flow characteristics.The Group 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 Group 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 Group 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.Revenue recognition (after January 1 2020)
The Group'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 Group in the
future.
Construction contracts (before January 1 2020)
The Group recognizes income based on the completion of individual construction contract. The management determines the
completion percentage based on the actual cost in the total budget and forecasts the contract income. The starting and completion
dates of construction contracts fall in different account periods. The Group will review and adjust contract income and cost
estimation in budgets (if the actual contract income is less than the estimate or actual contract cost contract estimation loss provision
will be made).
Estimate of fair value
The Group uses fair value to measure investment real estate and needs to estimate the fair value of investment real estate at
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.
33. Major changes in accounting policies and estimates
(1) Changes in accounting policies
√ Applicable □ Inapplicable
Account policy changes and reasons:
On July 5 2017 the Ministry of Finance issued the accounting standards for Business Enterprises No. 14 - Revenue (CK [2017]
No. 22) (hereinafter referred to as the "new revenue standards"). Domestic listed enterprises are required to implement the new
income standard from January 1 2020. The Company implemented the new income standard on January 1 2020 to adjust the
relevant contents of accounting policies.The new income standard requires that the cumulative impact of the first implementation of the standard should be adjusted to
the amount of retained earnings and other relevant items in the financial statements at the beginning of the first implementation year
(i.e. January 1 2020) and the information of the comparable period should not be adjusted. On December 10 2019 the Ministry of
Finance issued the interpretation of accounting standards for Business Enterprises No. 13.
On December 10 2019 the Ministry of Finance issued the interpretation of accounting standards for Business Enterprises No.
13. The Company implemented the interpretation on January 1 2020 and did not trace back the previous years.
The cumulative impact of the above new revenue standard accounting policies is as follows:
Due to the implementation of the new income standard the Company's consolidated financial statements were adjusted
accordingly as of January 1 2020 including accounts receivable of - 1493496313.22 yuan contract assets of 1297743546.73 yuan
other non current assets due within one year of 50120998.68 yuan other non current assets of 145631767.81 yuan advances of -
135007647.28 yuan contract liabilities of 124240948.05 yuan and other current liabilities of 10766 yuan 699.23 yuan and the
relevant adjustment has no impact on the shareholders' equity attributable to the parent company in the consolidated financial
statements of the Company.
At the same time due to the implementation of the new income standard there is no impact on the financial statements of the
parent company of the Company.
(2) Changes in major accounting estimates
√ Applicable □ Inapplicable
Account policy changes and
reasons
Approval procedure Effective time Remarks
According to the new
financial instruments
standards the relevant
enterprises should assess
whether the credit risk of
relevant financial instruments
has changed significantly on
each balance sheet date. The
Company calculates the
expected credit loss in 2020
by using the latest historical
data and combining with
forward-looking factors
according to the method of
calculating the expected
credit loss. In order to
objectively and truly reflect
the financial situation and
operating results of the
Company's various
businesses the accounting
estimates of the expected
credit loss rate of accounts
receivable and contract assets
are changed.The accounting estimate
change was approved by
the 22nd Meeting of the
8th board of directors on
April 16 2020
1 January 2020 The statement items affected by the
change of accounting estimate are as
follows: increased accounts receivable
by RMB24118098.91 increased
contract assets by RMB71658974.92
increased other non current assets due
within one year by RMB11866064.90
increased other non current assets by
RMB3415296.51 decreased deferred
income tax assets by
RMB16744810.10 increased surplus
reserve by RMB334.64 increased
undistributed profit by RMB93672
139.18 increased minority shareholders'
equity RMB641151.31 increased credit
impairment loss RMB24118098.91
increased asset impairment loss
RMB86940336.32 yuan increased
income tax expense RMB16744810.10
increased minority shareholders' profit
and loss RMB641151.31.
(3) The first implementation of the new financial instruments guidelines new income standards new lease
standards adjustments the first implementation of the financial statements at the beginning of the year
Applicable
Whether to adjust the balance sheet accounts at the beginning of the year
√ Yes □ No
Consolidated Balance Sheet
In RMB
Item 31 December 2019 1 January 2020 Adjustment
Current asset:
Monetary capital 1209811978.95 1209811978.95
Settlement provision
Outgoing call loan
Transactional financial
assets
10330062.18 10330062.18
Derivative financial
assets
Notes receivable 305070930.97 305070930.97
Account receivable 1956191307.07 462694993.85 -1493496313.22
Receivable financing 2954029.00 2954029.00
Prepayment 21327109.18 21327109.18
Insurance receivable
Reinsurance receivable
Provisions of
Reinsurance contracts
receivable
Other receivables 139947655.35 139947655.35
Including: interest
receivable
Dividend
receivable
Repurchasing of
financial assets
Inventory 733711143.46 733711143.46
Contract assets 1297743546.73 1297743546.73
Assets held for sales
Non-current assets due
in 1 year
50120998.68 50120998.68
Other current assets 323765585.90 323765585.90
Total current assets 4703109802.06 4557478034.25 -145631767.81
Non-current assets:
Loan and advancement
provided
Debt investment
Other debt investment
Long-term receivables
Long-term share equity
investment
57222240.83 57222240.83
Investment in other
equity tools
20660181.44 20660181.44
Other non-current
financial assets
5009728.02 5009728.02
Investment real estate 5522391984.11 5522391984.11
Fixed assets 477332830.92 477332830.92
Construction in process 129988982.86 129988982.86
Productive biological
assets
Gas & petrol
Use right assets
Intangible assets 78322265.05 78322265.05
R&D expense
Goodwill
Long-term amortizable
expenses
3875198.12 3875198.12
Deferred income tax
assets
343349564.70 343349564.70
Other non-current assets 28701802.00 174333569.81 145631767.81
Total of non-current assets 6666854778.05 6812486545.86 145631767.81
Total of assets 11369964580.11 11369964580.11 0.00
Current liabilities
Short-term loans 724618197.34 724618197.34
Loans from Central
Bank
Call loan received
Transactional financial
liabilities
Derivative financial
liabilities
96767.62 96767.62
Notes payable 578816027.44 578816027.44
Account payable 1190773300.24 1190773300.24
Prepayment received 136340104.73 1332457.45 -135007647.28
Contract liabilities 124240948.05 124240948.05
Selling of repurchased
financial assets
Deposit received and
held for others
Entrusted trading of
securities
Entrusted selling of
securities
Employees' wage
payable
55847134.20 55847134.20
Taxes payable 17848987.68 17848987.68
Other payables 701432408.28 701432408.28
Including: interest
payable
Dividend
payable
Fees and commissions
payable
Reinsurance fee payable
Liabilities held for sales
Non-current liabilities
due in 1 year
922346563.72 922346563.72
Other current liabilities 181694574.47 192461273.70 10766699.23
Total current liabilities 4509814065.72 4509814065.72 0.00
Non-current liabilities:
Insurance contract
provision
Long-term loans 546501491.56 546501491.56
Bond payable
Including: preferred
stock
Perpetual
bond
Lease liabilities
Long-term payable
Long-term employees‘
wage payable
Anticipated liabilities 7793527.16 7793527.16
Deferred earning 10817247.40 10817247.40
Deferred income tax
liabilities
1063833159.00 1063833159.00
Other non-current
liabilities
Total of non-current
liabilities
1628945425.12 1628945425.12
Total liabilities 6138759490.84 6138759490.84
Owner‘s equity:
Share capital 1123384189.00 1123384189.00
Other equity tools
Including: preferred
stock
Perpetual
bond
Capital reserves 1454191.59 1454191.59
Less: Shares in stock
Other miscellaneous
income
-475409.25 -475409.25
Special reserves
Surplus reserve 159805930.34 159805930.34
Common risk provisions
Retained profit 3898626177.99 3898626177.99
Total of owner‘s equity
belong to the parent company
5182795079.67 5182795079.67
Minor shareholders‘
equity
48410009.60 48410009.60
Total of owners‘ equity 5231205089.27 5231205089.27
Total of liabilities and
owner‘s interest
11369964580.11 11369964580.11
About the adjustment:
Due to the implementation of the new income standard the Company's consolidated financial statements were adjusted
accordingly as of January 1 2020 including accounts receivable of - 1493496313.22 yuan contract assets of 1297743546.73 yuan
other non current assets due within one year of 50120998.68 yuan other non current assets of 145631767.81 yuan advances of -
135007647.28 yuan contract liabilities of 124240948.05 yuan and other current liabilities of 10766 yuan 699.23 yuan and the
relevant adjustment has no impact on the shareholders' equity attributable to the parent company in the consolidated financial
statements of the Company. At the same time due to the implementation of the new income standard there is no impact on the
financial statements of the parent company of the Company.
Balance Sheet of the Parent Company
In RMB
Item 31 December 2019 1 January 2020 Adjustment
Current asset:
Monetary capital 175591953.63 175591953.63
Transactional financial
assets
Derivative financial
assets
Notes receivable
Account receivable 297813.76 297813.76
Receivable financing
Prepayment 250205.32 250205.32
Other receivables 1973381342.74 1973381342.74
Including: interest
receivable
Dividend
receivable
Inventory
Contract assets
Assets held for sales
Non-current assets due
in 1 year
Other current assets 877430.41 877430.41
Total current assets 2150398745.86 2150398745.86
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term share equity
investment
963508253.00 963508253.00
Investment in other
equity tools
18604010.22 18604010.22
Other non-current
financial assets
48831242.35 48831242.35
Investment real estate 295355002.00 295355002.00
Fixed assets 67361529.52 67361529.52
Construction in process
Productive biological
assets
Gas & petrol
Use right assets
Intangible assets 1824589.22 1824589.22
R&D expense
Goodwill
Long-term amortizable
expenses
934669.73 934669.73
Deferred income tax
assets
44408630.81 44408630.81
Other non-current assets
Total of non-current assets 1440827926.85 1440827926.85
Total of assets 3591226672.71 3591226672.71
Current liabilities
Short-term loans 300442988.19 300442988.19
Transactional financial
liabilities
Derivative financial
liabilities
Notes payable
Account payable 606941.85 606941.85
Prepayment received 746761.55 746761.55
Contract liabilities
Employees' wage
payable
3215013.16 3215013.16
Taxes payable 312647.89 312647.89
Other payables 109837934.17 109837934.17
Including: interest
payable
Dividend
payable
Liabilities held for sales
Non-current liabilities
due in 1 year
520872206.95 520872206.95
Other current liabilities
Total current liabilities 936034493.76 936034493.76
Non-current liabilities:
Long-term loans 70000000.00 70000000.00
Bond payable
Including: preferred
stock
Perpetual
bond
Lease liabilities
Long-term payable
Long-term employees‘
wage payable
Anticipated liabilities
Deferred earning
Deferred income tax
liabilities
64351075.92 64351075.92
Other non-current
liabilities
Total of non-current
liabilities
134351075.92 134351075.92
Total liabilities 1070385569.68 1070385569.68
Owner‘s equity:
Share capital 1123384189.00 1123384189.00
Other equity tools
Including: preferred
stock
Perpetual
bond
Capital reserves 360835.52 360835.52
Less: Shares in stock
Other miscellaneous
income
1287629.38 1287629.38
Special reserves
Surplus reserve 159805930.34 159805930.34
Retained profit 1236002518.79 1236002518.79
Total of owners‘ equity 2520841103.03 2520841103.03
Total of liabilities and
owner‘s interest
3591226672.71 3591226672.71
About the adjustment:
In the balance sheet of the parent company there is no adjustment of relevant items in the financial statements at the beginning of the
year due to the first implementation of the new income standard.
(4) Description of the 2020 first implementation of the new Income criteria new lease standard
retrospective adjustment of the previous period comparison data
□ Applicable √ Inapplicable
VI. Taxation
1. Major taxes and tax rates
Tax Tax basis Tax rate
VAT Taxable income 3% 5% 6% 9% 10% 11% 13%
City maintenance and construction tax Taxable turnover 1% 5% 7%
Enterprise income tax Taxable income See the following table
Education surtax Taxable turnover 3%
Local education surtax Taxable turnover 2%
Tax rates applicable for different tax payers
Tax payer Income tax rate
The Company 25%
Shenzhen Fangda Jianke Co. Ltd. (hereinafter Fangda Jianke) 15%
Fangda Zhichuang Technology Co. Ltd (Fangda Zhichuang) 15%
Fangda New Material (Jiangxi) Co. Ltd. (hereinafter Fangda
New Material)
15%
Dongguan Fangda New Material Co. Ltd. (hereinafter
Dongguan New Material)
15%
Chengdu Fangda Construction Technology Co. Ltd. (hereinafter
Chengdu Fangda)
15%
Shenzhen Fangda Property Development Co. Ltd. (hereinafter
Fangda Property Development)
25%
Shenzhen Fangda New Energy Co. Ltd. (hereinafter Fangda
New Energy)
25%
Shenzhen Fangda Property Development Co. Ltd. (hereinafter
Fangda Property Development)
25%
Jiangxi Fangda Property Development Co. Ltd. (hereinafter
Fangda Property Development)
25%
Pingxiang Fangda Luxin New Energy Co. Ltd. (hereinafter
Luxin New Energy)
25%
Nanchang Xinjian Fangda New Energy Co. Ltd. (hereinafter
Xinjian New Energy)
25%
Dongguan Fangda New Energy Co. Ltd. (hereinafter Dongguan
New Energy)
25%
Shenzhen QIanhai Kechuangyuan Software Co. Lt.d (hereinafter
Kechuangyuan Software)
25%
Fangda Zhichuang Technology (Hong Kong) Co. Ltd
(Zhichuang Hong Kong)
16.50%
Shihui International Holding Co. Ltd. (hereinafter Shihui
International)
16.50%
Shenzhen Hongjun Investment Co. Ltd. 25%
Fangda Australia Pty Ltd (hereinafter Jianke Australia) 30%
Shanghai Fangda Zhijian Technology Co. Ltd. (hereinafter
referred to as Fangda Zhijian company)
15%
Shenzhen Fangda Cloud Rail Technology Co. Ltd. (hereinafter
Fangda Cloud Rail)
25%
Shanghai Fangda Jianzhi Technology Co. Ltd. (hereinafter
Shanghai Fangda Jianzhi)
25%
Shenzhen Zhongrong Litai Investment Co. Ltd. (Zhongrong
Litai)
25%
Chengdu Fangda Curtain Wall Technology Co. Ltd. (hereinafter
Chengdu Curtain Wall)
25%
Fangda Southeast Asia Co. Ltd. 20%
Shenzhen Xunfu Investment Co. Ltd. (hereinafter referred to as
Xunfu Investment)
25%
Shenzhen Lifu Investment Co. Ltd. (hereinafter referred to as
Lifu Investment)
25%
Shenzhen Fangda Investment Partnership (Limited Partnership)
(hereinafter referred to as Fangda Partnership)
25%
Fangda Jianke (Hong Kong) Co. Ltd. (hereinafter Jianke Hong 16.50%
Kong)
2. Tax preference
(1) According to the Certification of High-tech Enterprise issued by Shenzhen Commission of Technological Innovation
Shenzhen Commission of Finance Shenzhen National Tax Bureau and Shenzhen Local Tax Bureau on 19.06.15 Fangda Jianke was
entitled to enjoy a tax preference of enterprise income tax of 15% for three years (2018-2017) since the qualifications were awarded.
(2) According to the Certification of High-tech Enterprise issued by Shenzhen Commission of Technological Innovation
Shenzhen Commission of Finance Shenzhen National Tax Bureau and Shenzhen Local Tax Bureau on 19.06.15 Fangda Zhichuang
was entitled to enjoy a tax preference of enterprise income tax of 15% for three years (2018-2017) since the qualifications were
awarded.
(3) According to the Certification of High-tech Enterprise issued by Jiangxi Ministry of Science and Technology Jiangxi
Ministry of Finance Jiangxi National Tax Bureau and Jiangxi Local Tax Bureau on 13.08.18 Fangda New Material was entitled to
enjoy a tax preference of enterprise income tax of 15% for three years (2018-2014) since the qualifications were awarded.
(4) On November 7 2014 Chengdu Fangda was certified by Sichuan Xinjin National Tax Bureau as an encourage industry
company in the west China (Xin Jin National Tax Doc. [zzy024]) and started to enjoy a tax rate of 15%.
(5) On December 3 2020 the subsidiary Chengdu Fangda obtained the ―High-tech Enterprise Certificate‖ jointly issued by
Sichuan Science and Technology Department Sichuan Provincial Department of Finance and Sichuan Provincial Taxation Bureau
within three years after obtaining the qualification of high-tech enterprises (2020 to 2022) the income tax is levied Resume at 15%.
(6) On November 2 2015 Dongguan New Energy was certified by Dongguan National Tax Bureau Songshanhu branch as the
national supported public infrastructure project according to the Song Shan Hu Tax Doc [2015] 3305. The Company is exempted
from enterprise income tax for three years and halfly exempted for another three years. In 2015 the Company entered the exemption
period.
(7) On 02.03.16 according to the document issued by Luxi National Tax Bureau the PV power generation project undertaken
by Pingxiang Fangda Luxin New Energy Co. Ltd became the infrastructure project supported by the central government. The
Company enjoys a three-year enterprise income tax relief and 50% reduction for another three years. In 2016 the Company entered
the exemption period.
(8) On 02.06.16 according to the document issued by Nanchang Xinjian District National Tax Bureau the PV power
generation project undertaken by subsidiary Xinjian New Energy Company became the infrastructure project supported by the
central government. The Company enjoys a three-year enterprise income tax relief and 50% reduction for another three years. In
2016 the Company entered the exemption period.
(9) On 10.03.17 according to the registration to Shenzhen National Tax Bureau subsidiary Kechuangyuan Software became a
newly established software and integrated circuit designing company and can enjoy the two-year full exemption and three-year
half-exemption of the enterprise income tax from the first year that the Company records profit. Kexunda started making profits in
2016 and therefore starts to enjoy the exemption.
(10) On December 2 2019 the subsidiary Dongguan New Materials Co. Ltd. obtained the certificate of high tech enterprise
jointly issued by Guangdong Provincial Department of science and technology Guangdong Provincial Department of Finance and
Guangdong Provincial Taxation Bureau. Within three years (from 2019 to 2021) after obtaining the qualification of high tech
enterprise the income tax will be charged at 15%.
(11) On November 12 2020 the subsidiary Fangda Zhijian obtained the certificate of high tech enterprise jointly issued by
Shanghai Science and Technology Commission Shanghai Finance Bureau and Shanghai Taxation Bureau. Within three years (from
2020 to 2022) after obtaining the qualification of high tech enterprise the income tax will continue to be charged at 15%.
VII. Notes to the consolidated financial statements
1. Monetary capital
In RMB
Item Closing balance Opening balance
Inventory cash: 482.09 4244.86
Bank deposits 1121353125.34 755440390.76
Other monetary capital 338486412.67 454367343.33
Total 1459840020.10 1209811978.95
Including: total amount deposited in
overseas
45275606.68 54640438.33
The total amount of money that
has restrictions on use due to mortgage
pledge or freezing
435587632.71 484542076.05
Others:
(1) The use of restricted funds in bank deposits is RMB111572213.17 of which RMB81065737.73 is restricted due to company
lawsuits RMB24519061.73 is deposited in real estate development supervision accounts RMB5238816.70 is deposited in special
labor insurance accounts and migrant workers‘ wage accounts and other security deposit accounts. The deposit is RMB748597.01;
the restricted funds used in other currency funds are RMB324015419.54 mainly for draft deposits periodic guarantee deposits
guarantee deposits for issuance of guarantees etc. In addition there are no other funds in the monetary funds at the end of the period
that have restrictions on use and potential recovery risks due to mortgages pledges or freezing.
(2) In the preparation of the cash flow statement the above-mentioned deposits and other restricted deposits are not used as cash and
cash equivalents.
(3) At the end of the period the Group's total amount deposited abroad was RMB45275606.68.
2. Transactional financial assets
In RMB
Item Closing balance Opening balance
Financial assets measured at fair value
with variations accounted into current
income account
4051015.05 10330062.18
Including: Investment of financial products 4051015.05 10330062.18
Total 4051015.05 10330062.18
3. Derivative financial assets
In RMB
Item Closing balance Opening balance
Futures contracts 6330475.00
Forward foreign exchange contract 643973.22
Total 6974448.22
4. Notes receivable
(1) Classification of notes receivable
In RMB
Item Closing balance Opening balance
Bank acceptance 21081547.58 45540691.10
Commercial acceptance 186064016.39 259530239.87
Total 207145563.97 305070930.97
In RMB
Type
Closing balance Opening balance
Remaining book
value
Bad debt provision
Book
value
Remaining book
value
Bad debt provision
Book
value
Amount
Proportio
n
Amount
Provision
rate
Amount
Proportio
n
Amount
Provision
rate
Including:
Notes receivable with
provision for bad
debts by portfolio
207145
563.97
100.00% 0.00 0.00%
2071455
63.97
3050709
30.97
100.00% 0.00 0.00%
3050709
30.97
Including:
Bank acceptance
210815
47.58
10.18% 0.00 0.00%
2108154
7.58
4554069
1.10
14.93% 0.00 0.00%
4554069
1.10
Commercial
acceptance
186064
016.39
89.82% 0.00 0.00%
1860640
16.39
2595302
39.87
85.07% 0.00 0.00%
2595302
39.87
Total
207145
563.97
100.00% 0.00 0.00%
2071455
63.97
3050709
30.97
100.00% 0.00 0.00%
3050709
30.97
If the provision for bad debts of bills receivable is made in accordance with the general model of expected credit losses please refer
to the disclosure of other receivables to disclose information about bad debts:
□ Applicable √ Inapplicable
(2) 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 7699719.55
Commercial acceptance 79724095.41
Total 87423814.96
Other note: The bank acceptance draft used for discount is accepted by the bank with low credit grade the discount does not affect
the right of recourse the credit risk related to the bill and the deferred payment risk are still not transferred so the confirmation is not
terminated.
5. Account receivable
(1) Account receivable disclosed by categories
In RMB
Type
Closing balance Opening balance
Remaining book
value
Bad debt provision
Book
value
Remaining book
value
Bad debt provision
Book value
Amount
Proportio
n
Amount
Provision
rate
Amount
Proportio
n
Amount
Provision
rate
Account receivable
for which bad debt
provision is made by
group
999690
69.48
12.42%
999690
69.48
100.00% 0.00
9996906
9.48
14.71%
9996906
9.48
100.00% 0.00
Including:
1. Customer 1
548732
23.21
6.82%
548732
23.21
100.00% 0.00
5487322
3.21
8.07%
5487322
3.21
100.00% 0.00
2. Customer 2
217393
81.96
2.70%
217393
81.96
100.00% 0.00
2173938
1.96
3.20%
2173938
1.96
100.00% 0.00
3. Customer 3
134618
34.96
1.67%
134618
34.96
100.00% 0.00
1346183
4.96
1.98%
1346183
4.96
100.00% 0.00
4. Customer 4
727000
0.00
0.90%
727000
0.00
100.00% 0.00
7270000
.00
1.07%
7270000
.00
100.00% 0.00
5. Customer 5
262462
9.35
0.33%
262462
9.35
100.00% 0.00
2624629
.35
0.39%
2624629
.35
100.00% 0.00
Account receivable
for which bad debt
provision is made by
group
704726
261.10
87.58%
885311
31.70
12.56%
6161951
29.40
5798402
46.58
85.29%
1171452
52.73
20.20%
46269499
3.85
Including:
1. Portfolio 1:
Engineering
operations section
513447
094.47
63.81%
780204
44.40
15.20%
4354266
50.07
4414396
86.38
64.94%
1062965
64.15
24.08%
33514312
2.23
2. Portfolio 2: Real
estate business
payments
110059
782.48
13.68%
731098
0.25
6.64%
1027488
02.23
7898227
4.43
11.62%
8857718
.82
11.21%
70124555.
61
3. Portfolio 3: Other
business models
812193
84.15
10.09%
319970
7.05
3.94%
7801967
7.10
5941828
5.77
8.74%
1990969
.76
3.35%
57427316.
01
Total
804695
330.58
100.00%
188500
201.18
23.43%
6161951
29.40
6798093
16.06
100.00%
2171143
22.21
31.94%
46269499
3.85
Separate bad debt provision:
In RMB
Name
Closing balance
Remaining book value Bad debt provision Provision rate Reason
1. Customer 1 54873223.21 54873223.21 100.00%
Customer credit status
deteriorates and is hard
to recover
2. Customer 2 21739381.96 21739381.96 100.00%
Customer credit status
deteriorates and is hard
to recover
3. Customer 3 13461834.96 13461834.96 100.00%
Customer credit status
deteriorates and is hard
to recover
4. Customer 4 7270000.00 7270000.00 100.00%
Customer credit status
deteriorates and is hard
to recover
5. Customer 5 2624629.35 2624629.35 100.00%
Customer credit status
deteriorates and is hard
to recover
Total 99969069.48 99969069.48 -- --
Provision for bad debts by portfolio: See Note V 9 for the confirmation standard and explanation of withdrawing bad debt reserves
by portfolio.
Portfolio 1: Engineering operations section
In RMB
Name
Closing balance
Remaining book value Bad debt provision Provision rate
Less than 1 year 279257157.50 5627562.39 2.02%
1-2 years 84488951.38 4785489.32 5.66%
2-3 years 54045963.27 6893782.55 12.76%
3-4 years 28674949.21 5666399.68 19.76%
4-5 years 20994474.28 9061611.63 43.16%
Over 5 years 45985598.83 45985598.83 100.00%
Total 513447094.47 78020444.40 --
Portfolio 2: Real estate business payments
In RMB
Name
Closing balance
Remaining book value Bad debt provision Provision rate
Less than 1 year 49117547.09 491175.48 1.00%
1-2 years 859159.75 42957.99 5.00%
2-3 years 22356145.64 1117807.28 5.00%
3-4 years
4-5 years 37726930.00 5659039.50 15.00%
Total 110059782.48 7310980.25 --
Combination 3: Other business models
In RMB
Name
Closing balance
Remaining book value Bad debt provision Provision rate
Less than 1 year 37743005.70 307686.80 0.82%
1-2 years 21256714.56 436530.16 2.05%
2-3 years 20389322.51 1694981.48 8.31%
3-4 years 1418769.99 351571.20 24.78%
4-5 years 19467.69 16833.71 86.47%
Over 5 years 392103.70 392103.70 100.00%
Total 81219384.15 3199707.05 --
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses please
refer to the disclosure of other receivables to disclose information about bad debts:
□ Applicable √ Inapplicable
Account age
In RMB
Age Remaining book value
Within 1 year (inclusive) 463462150.42
1-2 years 106604825.69
2-3 years 96791431.42
Over 3 years 137836923.05
3-4 years 30093719.20
4-5 years 58740871.97
Over 5 years 49002331.88
Total 804695330.58
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.6 – Listed Companies Engaged in Decoration Business.No. Customer
Balance of accounts
receivable of over 3 years
Balance of provision for
bad debts
Reason of the age
Whether there
is a risk of
recovery
1 Customer 1 17374148.42 17263443.48 Customer credit status
deteriorates
Yes
2 Customer 2 13461834.96 13461834.96 Customer credit status
deteriorates
Yes
3 Customer 3 16840340.70 16840340.70 Customer credit status
deteriorates
Yes
4 Customer 4 53281747.12 53281747.12 Customer credit status
deteriorates
Yes
Total 100958071.20 100847366.26
(2) Bad debt provision made returned or recovered in the period
Bad debt provision made in the period:
In RMB
Type Opening balance
Change in the period
Closing balance
Provision
Written-back or
recovered
Canceled Others
Separate bad debt
provision
99969069.48 99969069.48
Provision for bad 117145252.73 -28614121.03 88531131.70
debts by
combination
Total 217114322.21 -28614121.03 188500201.18
(3) Written-off account receivable during the period
No written-off account receivable during the period
(4) Balance of top 5 accounts receivable at the end of the period
In RMB
Entity
Closing balance of accounts
receivable
Percentage (%)
Balance of bad debt provision at
the end of the period
No.1 65034184.76 8.08% 6823034.85
No.2 54873223.21 6.82% 54873223.21
No.3 45824836.25 5.69% 2313867.97
No.4 39994441.07 4.97% 784325.36
No.5 22475765.58 2.79% 2866870.78
Total 228202450.87 28.35%
(5) Receivables derecognized due to transfer of financial assets
Item Transfer method of
financial assets
Derecognition of
book value
Gain or loss related to
the de-recognition
Customer 1 Factoring 13546132.64 -572382.02
Customer 2 Factoring 31828292.28 -1493323.44
Customer 3 Factoring 8808006.69 -419423.03
Customer 4 Factoring 1207422.43 -63617.65
Customer 5 Factoring 8954349.00 -442279.05
Customer 6 Factoring 10121434.76 -555927.43
Customer 7 Factoring 481277.51 -19989.14
Customer 8 Factoring 1843525.06 -79978.85
Customer 9 Factoring 10919342.60 -668475.92
Customer 10 Factoring 35254067.35 -1424470.73
Customer 11 Factoring 9514419.62 -409100.66
Total 132478269.94 -6148967.92
Note: At the end of the period the Group factored out accounts receivable that did not have recourse the factoring amount was
RMB135127383.49 and the book value of accounts receivable was derecognized as RMB132478269.94 of which: the book
balance was RMB135127383.49 and the bad debt provision of RMB2649113.55.
6. Receivable financing
In RMB
Item Closing balance Opening balance
Notes receivable 10727129.28 2954029.00
Total 10727129.28 2954029.00
Increase or decrease in the current period of receivables financing and changes in fair value
□ Applicable √ Inapplicable
If the provision for financing impairment of receivables is accrued in accordance with the general expected credit loss model please
refer to the disclosure of other receivables to disclose the relevant information of the impairment provision:
□ Applicable √ Inapplicable
7. Prepayment
(1) Account age of prepayments
In RMB
Age
Closing balance Opening balance
Amount Proportion Amount Proportion
Less than 1 year 18620416.29 78.08% 14025617.54 65.77%
1-2 years 3080312.85 12.92% 5895327.15 27.64%
2-3 years 1156139.70 4.85% 473487.72 2.22%
Over 3 years 989094.83 4.15% 932676.77 4.37%
Total 23845963.67 -- 21327109.18 --
(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 RMB9526430.73 accounting for 39.95% of the total
prepayments at the end of the period.
8. Other receivables
In RMB
Item Closing balance Opening balance
Other receivables 162145236.85 139947655.35
Total 162145236.85 139947655.35
(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 101436213.12 103782569.80
Construction borrowing and advanced
payment
35768993.75 34052644.05
Staff borrowing and petty cash 1586850.35 1717094.83
Receivable refund of VAT 3265790.25 548129.42
Debt by Luo Huichi 12992291.48 12992291.48
Others 31372479.72 12502878.08
Total 186422618.67 165595607.66
2) Method of bad debt provision
In RMB
Bad debt provision
First stage Second stage Third stage
Total
Expected credit
losses in the next 12
months
Expected credit loss for the
entire duration (no credit
impairment)
Expected credit loss for the
entire duration (credit
impairment has occurred)
Balance on Wednesday
January 1 2020
2113622.44 6415.10 23527914.77 25647952.31
Balance on Wednesday
January 1 2020 in the
current period
—— —— —— ——
Provision 135223.92 565761.49 -1907542.90 -1206557.49
Canceled in the current
period
164013.00 164013.00
Balance on Thursday
December 31 2020
2248846.36 572176.59 21456358.87 24277381.82
Changes in book balances with significant changes in the current period
□ Applicable √ Inapplicable
Account age
In RMB
Age Remaining book value
Within 1 year (inclusive) 48791636.27
1-2 years 19849717.46
2-3 years 74696027.39
Over 3 years 43085237.55
3-4 years 20935832.23
4-5 years 3170356.88
Over 5 years 18979048.44
Total 186422618.67
3) Bad debt provision made returned or recovered in the period
Bad debt provision made in the period:
In RMB
Type
Opening
balance
Change in the period
Closing balance
Provision
Written-back or
recovered
Canceled Others
Other receivables
and bad debt
provision
25647952.31 -1206557.49 164013.00 24277381.82
Total 25647952.31 -1206557.49 164013.00 24277381.82
4) Other receivable written off in the current period
In RMB
Item Amount
Other receivable written off 164013.00
5) Balance of top 5 other receivables at the end of the period
In RMB
Entity By nature Closing balance Age Percentage (%)
Balance of bad debt
provision at the end
of the period
Shenzhen Yikang
Real Estate Co. Ltd.Margin and current
account
70000000.00 2-3 years 37.55% 1043000.00
Bangshen
Electronics
(Shenzhen) Co. Ltd.
Deposit 20000000.00 3-4 years 10.73% 298000.00
Shenzhen Rijiasheng
Trading Co. Ltd
Arrears 18808945.57 Less than 1 year 10.09% 564268.37
Luo Huichi Debt by Luo Huichi 12992291.48 Over 5 years 6.97% 12992291.48
Shenzhen Henggang
Dakang Co. Ltd.
Deposit 8044000.00 2-3 years 4.31% 119855.60
Total -- 129845237.05 -- 69.65% 15017415.45
9. Inventories
Whether the Company needs to comply with disclosure requirements of the real estate industry.Yes
(1) Classification of inventories
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.3 – Listed Companies Engaged in Property Development.
Classified by nature:
In RMB
Item
Closing balance Opening balance
Remaining book
value
Provision for
inventory
depreciation or
contract
performance cost
impairment
provision
Book value
Remaining book
value
Provision for
inventory
depreciation or
contract
performance cost
impairment
provision
Book value
Development cost 458032158.63 458032158.63 365194941.67 365194941.67
Development
products
99012986.31 99012986.31 99770918.78 99770918.78
Contract
performance
costs
140403466.43 464651.43 139938815.00 1430361.92
Raw materials 61682744.96 55182.86 61627562.10 68623793.04 563013.42 68060779.62
Product in
process
66570800.79 66570800.79 59444230.45 59444230.45
Finished goods in
stock
7784598.06 7784598.06 7500273.11 7500273.11
Asset formed by
construction
contract
133002090.91 131571728.99
Low price
consumable
123705.51 123705.51 146018.01 146018.01
OEM materials 3562856.58 3562856.58 2022252.83 2022252.83
Materials in
transit
1178307.90 1178307.90
Total 838351625.17 519834.29 837831790.88 735704518.80 1993375.34 733711143.46
Development cost and capitalization rate of its interest are disclosed as follows:
In RMB
Item
Starting
time
Estimated
finish
registratio
n time
Estimated
total
investmen
t
Opening
balance
Transferr
ed to
developm
ent
product in
this
period
Other
decrease
in this
period
Increase
(develop
ment
cost) in
this
period
Closing
balance
Accumula
tive
capitalize
d interest
Including:
capitalize
d interest
for the
current
period
Capital
source
Jiangxi
Phoenix
Land
project
1 May
2018
Friday
April 30
2021
6700000
00.00
1974662
78.49
5272534
0.59
2501916
19.08
8276086
.58
5477958
.23
Bank loan
and
self-owne
d fund
Dakang
Village
Project in
Shenzhen
1
December
2023
31
December
2029
3600000
000.00
1668684
79.94
3048356
3.75
1973520
43.69
Bank loan
and
self-owne
d fund
Fangda
Bangshen
Industry
Park
1
December
2020
31
December
2022
8700000
00.00
860183.2
4
9628312
.62
1048849
5.86
Bank loan
and
self-owne
d fund
Total -- --
5140000
000.00
3651949
41.67
9283721
6.96
4580321
58.63
8276086
.58
5477958
.23
--
Disclose the main project information of "Development Products" according to the following format:
In RMB
Item
Completion
time
Opening
balance
Increase Decrease Closing balance
Accumulative
capitalized
interest
Including:
capitalized
interest for the
current period
Phase I of
Fangda
Town
29
December
2016
99770918.78 4313737.76 5071670.23 99012986.31 3803164.49
Total -- 99770918.78 4313737.76 5071670.23 99012986.31 3803164.49
(2) Provision for inventory depreciation and contract performance cost impairment provision
The inventory depreciation provision is disclosed as follows:
Classified by nature:
In RMB
Item
Opening
balance
Increase in this period Decrease in this period
Closing
balance
Remarks
Provision Others
Recover or
write-off
Others
Contract
performance
costs
1430361.
92
965710.49 464651.43
Raw materials 563013.42 507830.56 55182.86
Total
1993375.
34
1473541.05 519834.29 --
(3) Capitalization rate of interest in the closing inventory balance
As of December 31 2020 the capitalization amount of borrowing costs in the ending inventory balance is RMB12079251.07.
(4) Restriction of inventory
Restricted inventory is disclosed by project
In RMB
Item Opening balance Closing balance Reason
Jiangxi Phoenix Land project 99936207.50 103973925.13 Loan by pledge
Total 99936207.50 103973925.13 --
10. Contract assets
In RMB
Item
Closing balance Opening balance
Remaining
book value
Impairment
provision
Book value
Remaining
book value
Impairment
provision
Book value
Sales funds with conditional
collection right
27639344.20 351544.65 27287799.55 220353920.01 17679244.86 202674675.15
Completed but unsettled
assets
1531697534.
72
145724350.90
1385973183.
82
1268523793.
68
185324719.03 1083199074.65
Unexpired warranty deposit 12105019.23 325779.33 11779239.90 12116319.35 246522.42 11869796.93
Total
1571441898.
15
146401674.88
1425040223.
27
1500994033.
04
203250486.31 1297743546.73
The amount and reasons for major changes in the book value of contract assets during the current period:
In RMB
Item Change Reason
Sales funds with
conditional collection right
-175386875.60 It is mainly due to the fact that Fangda Town's house purchase
customers converted the contract assets at the beginning of the
year into accounts receivable with unconditional right of
collection after handling the house property certificate in the
reporting period.
Completed but unsettled
assets
302774109.20 It is mainly caused by the unsettled assets with conditional
collection right generated from the revenue recognized in the
project contract this year
Total 127387233.60
If the provision for bad debts of contract assets is made in accordance with the general model of expected credit losses please refer to
the disclosure of other receivables to disclose information about bad debts:
□ Applicable √ Inapplicable
Provision made for bad debts of contract assets in this period
In RMB
Item Provision
Transferred back in the
current period
Written off in the current
period
Reason
Sales funds with
conditional collection
right
-17327700.21
Completed but unsettled
assets
-31328706.53 8271661.61
Unexpired warranty
deposit
79256.91
Total -48577149.83 8271661.61 --
Others:
Due to the poor management of the customer of Ordos curtain wall project of Jianke company the estimated amount cannot be
recovered and the receivable contract assets of RMB8271661.61 are written off in the current period.
11. Non-current assets due in 1 year
In RMB
Item Closing balance Opening balance
Contract assets due within one year 159119938.94 63677981.88
Less: provision for impairment 17438160.59 13556983.20
Total 141681778.35 50120998.68
12. Other current assets
In RMB
Item Closing balance Opening balance
Contract acquisition cost 2156027.17
Tax to be input 136812357.07 104829711.45
Overpayment and prepayment of income
tax
88741787.42 10942500.38
Other prepaid taxes 2373031.15
Structural loan 27811.25 207993374.07
Deferred discount expense 2644267.12
Others 467803.33
Total 233223084.51 323765585.90
13. Long-term share equity investment
In RMB
Invested
entity
Opening
book
value
Change (+-)
Closing
book
value
Balance
of
impairme
nt
provision
at the end
of the
period
Increased
investmen
t
Decrease
d
investmen
t
Investme
nt gain
and loss
recognize
d using
the equity
method
Other
miscellan
eous
income
adjustmen
t
Other
equity
change
Cash
dividend
or profit
announce
d
Impairme
nt
provision
Others
1. Joint venture
2. Associate
Shenzhen
Ganshang
Joint
Investme
nt Co.
Ltd.
2360044
.01
4754.64
2364798
.65
Jiangxi
Business
Innovativ
5486219
6.82
-132461
7.52
5353757
9.30
e
Property
Joint
Stock
Co. Ltd.
Subtotal
5722224
0.83
-131986
2.88
5590237
7.95
Total
5722224
0.83
-131986
2.88
5590237
7.95
14. Investment in other equity tools
In RMB
Item Closing balance Opening balance
Unlisted equity instrument investment 17628307.59 20660181.44
Total 17628307.59 20660181.44
Sub-disclosure of non-tradable equity instrument investment in the current period
In RMB
Item
Dividend
recognized in the
period
Total gain Total loss
Amount of other
comprehensive
income
transferred to
retained earnings
Reason for
measurement at
fair value with
variations
accounted into
current income
account
Reason for
transfer of other
miscellaneous
into income
Shenyang Fangda 12170244.23
Shenzhen Huihai
Yirong Internet
Service Co. Ltd.
2543301.37
15. Other non-current financial assets
In RMB
Item Closing balance Opening balance
Financial assets measured at fair value
with variations accounted into current
income account
5025186.16 5009728.02
Total 5025186.16 5009728.02
16. Investment real estates
(1) Investment real estate measured at costs
√ Applicable □ Inapplicable
In RMB
Item Houses & buildings Total
I. Book value
1. Opening balance 223347558.10 223347558.10
2. Increase in this period 51653141.64 51653141.64
(1) Transfer-in from
inventory\fixed
assets\construction in
progress
51653141.64 51653141.64
3. Decrease in this
period
264590007.87 264590007.87
(1) Other transfer-out 264590007.87 264590007.87
4. Closing balance 10410691.87 10410691.87
II. Accumulative depreciation
and amortization
1. Opening balance 7071934.11 7071934.11
2. Increase in this period 469809.74 469809.74
(1) Provision or
amortization
469809.74 469809.74
3. Decrease in this
period
3488020.10 3488020.10
(1) Other transfer-out 3488020.10 3488020.10
4. Closing balance 4053723.75 4053723.75
III. Impairment provision
1. Opening balance
2. Increase in this period
3. Decrease in this
period
4. Closing balance
IV. Book value
1. Closing book value 6356968.12 6356968.12
2. Opening book value 216275623.99 216275623.99
Notes:
①The other transfer-out amount of RMB245953338.54 yuan is due to the completion of the completion acceptance and planning
acceptance of the investment real estate used for lease in the Fenghuangzhou plot project of the subsidiary Jiangxi Property. Its fair
value can be reliably measured so it is due to the change from cost measurement to fair value measurement in accordance with the
Company's investment real estate accounting policy. Among the other transfers RMB 18636669.33 was due to the needs of
business development. Some houses of the subsidiary Zhichuang Technology Co. Ltd. were converted from external leases to
self-use.
② By December 31 2020 there is no sign of impairment to the Group‘s investment real estatement measured at costs.
(2) Investment real estate measured at fair value
√ Applicable □ Inapplicable
In RMB
Item Houses & buildings Total
I. Opening balance 5306116360.12 5306116360.12
II. Change in this period 322175088.28 322175088.28
Add: Transfer-in from
inventory\fixed
assets\construction in
progress
62520582.55 62520582.55
Transfer in of investment
real estate with cost
measurement mode
245953338.54 245953338.54
Change in fair value 19205841.18 19205841.18
Less: disposal 5504673.99 5504673.99
III. Closing balance 5628291448.40 5628291448.40
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.3 – Listed Companies Engaged in Property Development.
Disclosure of investment real estate measured at fair value by projects
In RMB
Item Location
Completio
n time
Building
area
Rental
income in
the report
period
Opening
fair value
Closing fair
value
Change in
fair value
Reason for the
change and report
Commercial podium
of Fangda Town
Shenzhen
Sunday
October
11 2017
22565.42
2730957
4.42
1290742
024.00
1340385948.
00
3.85%
The fair value of
the investment real
estate is
Building 1# of Fangda
Town
Shenzhen
Saturday
December
29 2018
72517.71
4847956
6.08
3720019
334.12
3646971680.
07
-1.96%
determined based
on Shenzhen
Wenji Land and
Property
Evaluation Doc.
深文集评字 SZ
（2021）AF 第
005 号 Real
Estate Valuation
Report.
Fangda Building Shenzhen
28
December
2002
17792.47
1497600
5.26
2953550
02.00
334498436.00 13.25%
Jiangxi Phoenix Land
project
Nanchang
Thursday
December
10 2020
32354.44 0.00
302854554.33
The fair value of
the investment real
estate is
determined based
on Shenzhen
Wenji Land and
Property
Evaluation Doc.
深文集评字 SZ
（2021）AF 第
004 号 Real
Estate Valuation
Report.Total —— ——
145230.0
4
9076514
5.76
5306116
360.12
5624710618.
40
6.00% ——
Whether the Company has investment real estate in the current construction period
√ Yes □ No
The investment real estate in the construction period of the current period:
In RMB
Item Location
Date of
commencement
Estimated total
investment
Opening amount Closing amount Completion time
Jiangxi Phoenix
Land project
Nanchang 1 May 2018 670000000.00 194300196.90
Thursday
December 10
2020
Total —— —— 670000000.00 194300196.90 ——
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
Item Original Original book Recorded fair Closing fair Change time Different handling
accounting
method
value value value method and basis
Jiangxi Phoenix Land
project
Investment
real estate
measured
by cost
model
245953338.5
4
302854554.3
3
302854554.33
Thursday December
10 2020
The difference is
included in the income
from changes in fair
value; according to the
accounting standards
for business
enterprises
application guide
explanation and other
relevant provisions
the buildings built or
developed by the
owner for rent after
completion of the
activities should be
accounted as
investment real estate.If the fair value of an
investment real estate
under construction
cannot be reliably
determined but it is
expected that the fair
value of the real estate
after completion can
be obtained
continuously and
reliably the
investment real estate
under construction
shall be measured at
cost and its fair value
shall be measured at
fair value when it can
be reliably measured
or after completion
(whichever is earlier).Total ——
245953338.5
4
302854554.3
3
302854554.33
—— ——
(3) Investment real estate without ownership certificate
In RMB
Item Book value Reason
Jiangxi Phoenix Land project
302854554.33
Conditions for applying for property right
are not met
17. Fixed assets
In RMB
Item Closing balance Opening balance
Fixed assets 481270562.26 477332830.92
Disposal of fixed assets 1891111.12
Total 483161673.38 477332830.92
(1) Fixed assets
In RMB
Item
Houses &
buildings
Mechanical
equipment
Transportation
facilities
Electronics and
other devices
PV power plants Total
I. Original book
value:
1. Opening
balance
397489124.24 129679176.79 21359342.69 44608708.34 129596434.84 722732786.90
2. Increase in
this period
23172441.42 11577525.66 417707.97 2800634.17 37968309.22
(1) Purchase 4360920.00 11487525.66 278707.97 2439672.21 18566825.84
(2)
Transfer-in of
construction in
progress
174852.09 345132.76 519984.85
(3) Other
increases
18636669.33 90000.00 139000.00 15829.20 18881498.53
3. Decrease in
this period
4936135.74 19760373.49 260608.02 1137975.74 26095092.99
(1) Disposal
or retirement
4936135.74 19760373.49 260608.02 1137975.74 26095092.99
4. Closing 415725429.92 121496328.96 21516442.64 46271366.77 129596434.84 734606003.13
balance
II. Accumulative
depreciation
1. Opening
balance
75577918.79 102194972.59 15634519.78 28429239.34 22208915.98 244045566.48
2. Increase in
this period
14314412.27 3882061.64 695325.33 1869773.46 6148440.12 26910012.82
(1) Provision 10826392.17 3882061.64 570225.33 1722919.31 6148440.12 23150038.57
(2) Other
increases
3488020.10 125100.00 146854.15 3759974.25
3. Decrease in
this period
94984.56 16406907.76 232361.13 984274.48 17718527.93
(1) Disposal or
retirement
94984.56 16406907.76 232361.13 984274.48 17718527.93
4. Closing
balance
89797346.50 89670126.47 16097483.98 29314738.32 28357356.10 253237051.37
III. Impairment
provision
1. Opening
balance
1297621.81 56767.69 1354389.50
2. Increase in
this period
3. Decrease in
this period
1256000.00 1256000.00
(1) Disposal
or retirement
1256000.00 1256000.00
4. Closing
balance
41621.81 56767.69 98389.50
IV. Book value
1. Closing
book value
325928083.42 31784580.68 5418958.66 16899860.76 101239078.74 481270562.26
2. Opening
book value
321911205.45 26186582.39 5724822.91 16122701.31 107387518.86 477332830.92
(2) Fixed assets without ownership certificate
In RMB
Item Book value Reason
Houses in Urumuqi for offsetting debt 497716.11 Historical reasons
Yuehai Office Building C 502 124562.61 Historical reasons
Construction of Chengdu Fangda Xinjin
Base
29615286.96
In the process of applying for property
right certificate
(3) Disposal of fixed assets
In RMB
Item Closing balance Opening balance
Jiangxi new material South Korea
composite aluminum plate production line
1891111.12
Total 1891111.12
18. Construction in process
In RMB
Item Closing balance Opening balance
Construction in process 168626803.01 129988982.86
Total 168626803.01 129988982.86
(1) Construction in progress
In RMB
Item
Closing balance Opening balance
Remaining book
value
Impairment
provision
Book value
Remaining book
value
Impairment
provision
Book value
Construction and
decoration of
self-use part of
Building 1 of
Fangda Town
78213965.55 78213965.55 54275503.95 54275503.95
Fangda Group
East China
Construction
Base Project
90101031.20 90101031.20 75473740.65 75473740.65
Design of
intelligent gluing
robot
23242.53 23242.53 23242.53 23242.53
Standard
production line
288563.73 288563.73 216495.73 216495.73
Total 168626803.01 168626803.01 129988982.86 129988982.86
(2) Changes in major construction in process in this period
In RMB
Item Budget
Opening
balance
Increase
in this
period
Amount
transfer-i
n to
fixed
assets in
this
period
Other
decrease
in this
period
Closing
balance
Proporti
on of
accumul
ative
engineeri
ng
investme
nt in the
budget
Project
progress
Accumul
ative
capitaliz
ed
interest
Includin
g:
capitaliz
ed
interest
for the
current
period
Interest
capitaliz
ation rate
Capital
source
Construc
tion and
decoratio
n of
self-use
part of
Building
1 of
Fangda
Town
828400
00.00
542755
03.95
239384
61.60
782139
65.55
94.42%
In
construct
ion
Self-own
ed fund
Fangda
Group
East
China
Construc
tion Base
Project
105060
000.00
754737
40.65
146272
90.55
901010
31.20
85.76%
In
construct
ion
263584
9.07
224800
8.40
5.72%
Loans
from
financial
institutio
ns+
self-own
ed fund
Total
187900
000.00
129749
244.60
385657
52.15
168314
996.75
-- --
263584
9.07
224800
8.40
--
19. Intangible assets
(1) Intangible assets
In RMB
Item Land using right Patent Unpatented Software Total
technologies
I. Book value
1. Opening
balance
78751482.29 8966866.05 17892864.49 105611212.83
2. Increase in
this period
1653254.84 15881.12 1476519.46 3145655.42
(1) Purchase 1653254.84 15881.12 1476519.46 3145655.42
3. Decrease in this
period
21144.83 21144.83
(1) Other decrease 21144.83 21144.83
4. Closing
balance
80404737.13 8982747.17 19348239.12 108735723.42
II. Accumulative
amortization
1. Opening
balance
12802236.28 8028555.36 6458156.14 27288947.78
2. Increase in
this period
2273293.48 443469.42 1537186.91 4253949.81
(1) Provision 2273293.48 443469.42 1537186.91 4253949.81
3. Decrease in
this period
4. Closing
balance
15075529.76 8472024.78 7995343.05 31542897.59
III. Impairment
provision
1. Opening
balance
2. Increase in
this period
3. Decrease in
this period
4. Closing
balance
IV. Book value
1. Closing book
value
65329207.37 510722.39 11352896.07 77192825.83
2. Opening
book value
65949246.01 938310.69 11434708.35 78322265.05
(2) Failure to obtain the land use right certificates
At the end of the period the Company had no land use right without the property right certificate.
20. Long-term amortizable expenses
In RMB
Item Opening balance
Increase in this
period
Amortized amount
in this period
Other decrease Closing balance
Xuanfeng Chayuan
village and Zhuyuan
village land transfer
compensation
1140730.22 56101.56 1084628.66
Reconstruction
project of sample
room
462854.58 115713.60 347140.98
Membership fee 637499.92 6250.00 230000.04 413749.88
Waterproofing works
for employee
dormitories
460084.29 299972.48 128586.72 631470.05
Management
consulting service
fee
901552.04 494073.73 407478.31
Warehouse addition
and renovation
project
272477.07 60550.44 211926.63
Dahuaxin Dongguan
Songshanhu rubber
area interlayer
transformation
541284.40 180428.16 360856.24
Premium for basic
and all risks
44664.53 7940.36 36724.17
Training
management
platform service fee
101650.94 101650.94
Factory wall
painting and rolling
shutter door
engineering
229824.00 11491.20 218332.80
Property insurance 360772.95 360772.95
premium
Plant ground
reconstruction
project
435809.71 29054.00 406755.71
Total 3875198.12 2020229.01 1313939.81 4581487.32
21. Differed income tax assets and differed income tax liabilities
(1) Non-deducted deferred income tax assets
In RMB
Item
Closing balance Opening balance
Deductible temporary
difference
Deferred income tax
assets
Deductible temporary
difference
Deferred income tax
assets
Assets impairment
provision
263315510.54 38465248.35 93590747.27 23063418.45
Unrealized investment
income of internal
transaction
135859744.95 33964936.24
Deductible loss 122522156.58 29105371.97 271310599.01 67626700.92
Credit impairment
provision
212717683.70 44512473.69 473809506.79 75229494.57
Unrealizable gross profit 130105754.96 31898500.96 119543729.80 29233320.47
Provided unpaid taxes 584599356.81 146149839.20
Anticipated liabilities 33425500.13 7715527.38 7793527.16 1169029.07
Donation 35203.72 5280.56 700000.00 175000.00
Reserved expense 1742978.53 261446.78
Deferred earning 2314029.86 342765.63 2346742.62 347579.43
Change in fair value 1520569.70 228085.49 96767.62 14515.14
Advertising expenses can
be deducted
1644582.77 411145.69 316882.69 79220.67
Total 903460736.91 186649335.96 1555850838.30 343349564.70
(2) Non-deducted deferred income tax liabilities
In RMB
Item Closing balance Opening balance
Taxable temporary
difference
Deferred income tax
liabilities
Taxable temporary
difference
Deferred income tax
liabilities
Change in fair value 4126893826.17 1031090409.04 4101290434.14 1025322608.53
Estimated gross margin
when Fangda Town
records income but does
not reach the taxable
income level
132104998.74 33026249.69
Acquire premium to form
inventory
1535605.47 383901.37 1535605.47 383901.37
Rental income 26439158.17 6609789.56 20401597.60 5100399.41
Total 4154868589.81 1038084099.97 4255332635.95 1063833159.00
(3) Net deferred income tax assets or liabilities listed
In RMB
Item
Deferred income tax
assets and liabilities at
the end of the period
Offset balance of
deferred income tax
assets or liabilities after
offsetting
Deferred income tax
assets and liabilities at
the beginning of the
period
Offset balance of
deferred income tax
assets or liabilities after
offsetting
Deferred income tax
assets
186649335.96 343349564.70
Deferred income tax
liabilities
1038084099.97 1063833159.00
(4) Details of unrecognized deferred income tax assets
In RMB
Item Closing balance Opening balance
Deductible temporary difference 130889.01 446874.58
Deductible loss 7336111.24 8983744.38
Total 7467000.25 9430618.96
(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
2020 30257.35
2021
2022 1270623.72 2286265.51
2023 4575983.46 5390985.76
2024 1276235.76 1276235.76
2025 213268.30
Total 7336111.24 8983744.38 --
Others:
At the end of the period the deferred income tax assets decreased by 45.64% compared with that at the beginning of the period
mainly because the subsidiary Fangda real estate company met the liquidation conditions of paying land value-added tax in the
current period and turned back the deferred income tax assets corresponding to the accrued and unpaid taxes.
22. Other non-current assets
In RMB
Item
Closing balance Opening balance
Remaining
book value
Impairment
provision
Book value
Remaining
book value
Impairment
provision
Book value
Contract assets
81416144.8
3
6412571.95
75003572.8
8
160318405.
15
14686637.3
4
145631767.
81
Prepaid house and equipment amount
29132495.1
0
29132495.1
0
28446802.0
0
28446802.0
0
Prepayment of intangible assets 465213.39 465213.39
Prepaid engineering amount 138171.75 138171.75 255000.00 255000.00
Total
111152025.
07
6412571.95
104739453.
12
189020207.
15
14686637.3
4
174333569.
81
23. Short-term borrowings
(1) Classification of short-term borrowings
In RMB
Item Closing balance Opening balance
Loan by pledge 30045466.66
Loan by pledge 200318605.55
Guarantee loan 200013291.68 216287991.79
Credit borrow 346029354.19 8011600.00
The Group's internal acceptance bills
discounted borrowings
292266666.67 300000000.00
The Group's external acceptance discount
loan
179895548.42
Total 1048250327.62 724618197.34
24. Transactional financial liabilities
None
25. Derivative financial liabilities
In RMB
Item Closing balance Opening balance
Forward foreign exchange contract 915234.93 96767.62
Total 915234.93 96767.62
26. Notes payable
In RMB
Type Closing balance Opening balance
Commercial acceptance 651222454.25 449574698.68
Bank acceptance 215002061.17 129241328.76
Total 866224515.42 578816027.44
The total amount of payable bills that have matured but not been paid at the end of the period is RMB0.00.
27. Account payable
(1) Account payable
In RMB
Item Closing balance Opening balance
Account repayable and engineering
repayable
880761256.54 811680369.67
Construction payable 98783841.73 75375776.11
Payable installation and implementation
fees
295439323.67 297516473.34
Others 4450130.01 6200681.12
Total 1279434551.95 1190773300.24
(2) Significant payables aging more than 1 year
In RMB
Item Closing balance Reason
Supplier 1 71125193.51 Not mature
Supplier 2 8655833.07 Not mature
Supplier 3 7381161.50 Not mature
Supplier 4 5553505.46 Not mature
Supplier 5 3128600.54 Not mature
Total 95844294.08 --
28. Prepayment received
(1) Prepayment received
In RMB
Item Closing balance Opening balance
Rent and others 1544655.62 1332457.45
Total 1544655.62 1332457.45
29. Contract liabilities
In RMB
Item Closing balance Opening balance
Project funds collected in advance 195922455.76 120523626.81
Real estate sales payment 62466576.69 621697.25
Material loan 1408738.82 752948.55
Others 5689341.85 2342675.44
Total 265487113.12 124240948.05
The amount and reason for the significant change in the book value during the reporting period
In RMB
Item Change Reason
Project funds collected in
advance 75398828.95
It is mainly due to the increase of advance payment for the project
Real estate sales payment
61844879.44
Mainly due to the pre-sale of real estate of Nanchang Fangda
Center project
30. Employees’ wage payable
(1) Employees’ wage payable
In RMB
Item Opening balance Increase Decrease Closing balance
1. Short-term
remuneration
55534644.34 322671459.63 318055744.12 60150359.85
2. Retirement pension
program-defined
contribution plan
25334.86 3610526.45 3597408.52 38452.79
3. Dismiss compensation 287155.00 1605506.27 1892661.27
Total 55847134.20 327887492.35 323545813.91 60188812.64
(2) Short-term remuneration
In RMB
Item Opening balance Increase Decrease Closing balance
1. Wage bonus
allowance and subsidies
54054805.08 294141118.68 288807784.80 59388138.96
2. Employee welfare 14687862.43 14687862.43
3. Social insurance 8812.80 6157952.53 6166614.94 150.39
Including: medical
insurance
8812.80 3928663.65 3937476.45
Labor injury
insurance
611366.67 611216.28 150.39
Breeding
insurance
507048.14 507048.14
Unemployment insurance 1110874.07 1110874.07
4. Housing fund 45924.00 7464735.09 7469051.09 41608.00
5. Labor union budget
and staff education fund
1425102.46 42351.23 902801.88 564651.81
6. Short-term paid leave 177439.67 21628.98 155810.69
Total 55534644.34 322671459.63 318055744.12 60150359.85
(3) Defined contribution plan
In RMB
Item Opening balance Increase Decrease Closing balance
1. Basic pension 25334.86 3505472.49 3492504.95 38302.40
2. Unemployment
insurance
105053.96 104903.57 150.39
Total 25334.86 3610526.45 3597408.52 38452.79
31. Taxes payable
In RMB
Item Closing balance Opening balance
VAT 3944275.20 5138273.83
Enterprise income tax 13172677.89 8013627.51
Personal income tax 1113797.56 1111213.06
City maintenance and construction tax 792228.07 1499926.15
Land using tax 242187.59 241855.73
Property tax 317791.55 265016.74
Education surtax 422865.94 736138.35
Local education surtax 162981.22 352390.86
Land VAT 337655257.61 31084.86
Others 838881.79 459460.59
Total 358662944.42 17848987.68
32. Other payables
In RMB
Item Closing balance Opening balance
Other payables 147615289.31 701432408.28
Total 147615289.31 701432408.28
(1) Other payables
1) Other payables presented by nature
In RMB
Item Closing balance Opening balance
Performance and quality deposit 37119618.56 46117111.79
Deposit 17623656.22 4885326.38
Reserved expense 10861930.30 17194987.92
Tax withheld 584599356.81
Pledge 300000.00
Others 82010084.23 48335625.38
Total 147615289.31 701432408.28
Others:
1. The increase of "other" items in this year is mainly due to the sales return of real estate business and the refund of house purchase
discount with a total amount of about RMB29.0687;
2. Other accounts payable at the end of the period decreased by 78.96% compared with that at the beginning of the period mainly
due to the fact that the subsidiary Fangda Real Estate met the liquidation conditions of land value-added tax in the current period and
transferred the land value-added tax accrued in previous years from this subject to the tax payable.
(2) Significant payables aging more than 1 year
In RMB
Item Closing balance Reason
Shenzhen Yikang Real Estate Co. Ltd. 21581724.49 Affiliated party payment
Total 21581724.49 --
33. Non-current liabilities due within 1 year
In RMB
Item Closing balance Opening balance
Long-term loans due within 1 year 103359833.57 922346563.72
Total 103359833.57 922346563.72
34. Other current liabilities
In RMB
Item Closing balance Opening balance
Unterminated notes receivable 82447039.97 169688481.80
Substituted money on VAT 25241385.72 22772791.90
Total 107688425.69 192461273.70
35. Long-term borrowings
(1) Classification of long-term borrowings
In RMB
Item Closing balance Opening balance
Loan by pledge 293978153.39
Loan by pledge 231295035.65 182523338.17
Guarantee loan 70000000.00
Guarantee mortgage and pledge loan 868116426.70
Total 1099411462.35 546501491.56
Notes to classification of long-term borrowings:
The pledge in the above guarantee mortgage and pledge loan is based on the 100% equity of Fangda Real Estate Co. Ltd. a
subsidiary of the Company and the rent receivable pledge of Fangda Town rental property.Other note including interest rate range:
The interest rate period of long-term loan is 3%-7%.
36. Anticipated liabilities
In RMB
Item Closing balance Opening balance Reason
Pending lawsuit 27017023.60
Penalty for delay in handling
certificate of title
Product quality warranty 6408476.53 7793527.16 Product quality warranty
Total 33425500.13 7793527.16 --
Others:
See Note XI 2(1) ④ for details of matters involved in liquidated damages litigation
37. Deferred earning
In RMB
Item Opening balance Increase Decrease Closing balance Reason
Government subsidy 10817247.40 200000.00 1848755.23 9168492.17
See the following
table
Total 10817247.40 200000.00 1848755.23 9168492.17 --
Items involving government subsidies:
In RMB
Liabilities
Opening
balance
Amount of
new subsidy
Amount
included in
Other misc.gains
Costs offset
in the period
Other
change
Closing balance
Related to
assets/earnin
non-operatin
g revenue
recorded in
this period
g
Railway
transport
screen door
controlling
system and
information
transmission
technology
77653.85 18904.32 58749.53
Assets-relate
d
Major
investment
project prize
from
Industry and
Trade
Developmen
t Division of
Dongguan
Finance
Bureau
1623809.90 57142.80 1566667.10
Assets-relate
d
Distributed
PV power
generation
project
subsidy
sponsored by
Dongguan
Reform and
Developmen
t
Commission
393750.17 24999.96 368750.21
Assets-relate
d
Subsidized
land transfer
177278.87 3725.64 173553.23
Assets-relate
d
Special
subsidy for
industrial
transformati
on
upgrading
and
development
800000.00 800000.00
Assets-relate
d
Enterprise
informationi
zation
subsidy
project of
Shenzhen
Small and
Medium
Enterprise
Service
Agency
468000.00 48000.00 420000.00
Assets-relate
d
National
Industry
Revitalizatio
n and
Technology
Renovation
Project fund
7276754.61 1591042.51 5685712.10
Assets-relate
d
Shenzhen
Science and
Technology
Innovation
Committee
Technology
Innovation
Subsidy
200000.00 104940.00 95060.00
Earning-relat
ed
Total 10817247.40 200000.00 1848755.23 9168492.17
Others:
38. Other non-current liabilities
None
39. Capital share
In RMB
Opening
balance
Change (+-)
Closing
balance
Issued new
shares
Bonus shares
Transferred
from reserves
Others Subtotal
Total of capital
shares
1123384189.
00
-35105238.00 -35105238.00
1088278951.
00
Others:
① The decrease in share capital was due to the repurchase and cancellation of B shares by the Company during the reporting period.
② As of December 31 2020 there are 2302093 shares with limited sales conditions in the closing balance all of which are held by
senior executives.
40. Other equity instruments
None
41. Capital reserve
In RMB
Item Opening balance Increase Decrease Closing balance
Capital premium (share
capital premium)
94.24 10005396.81 10005491.05
Other capital reserves 1454097.35 1454097.35
Total 1454191.59 10005396.81 11459588.40
Other note including explanation about the reason of the change:
The increase of capital reserve in the current period was caused by the Company's premium transfer of part of the equity of its
subsidiary Zhichuang Technology.
42. Shares in stock
In RMB
Item Opening balance Increase Decrease Closing balance
Shares in stock 142134417.40 99385887.28 42748530.12
Total 142134417.40 99385887.28 42748530.12
Other note including explanation about the reason of the change:
① On November 28 2019 and December 16 2019 the Company held the 19th meeting of the 8th board of directors and the first
extraordinary general meeting of shareholders in 2019 respectively to deliberate and approve the proposal of repurchase part of the
Company's domestic listed foreign shares (B shares) in 2019. From April 3 2020 to May 12 2020 a total of 35105238 shares were
repurchased through centralized competitive trading with the highest price of HKD3.33 per share and the lowest price of HKD2.45
per share. The actual payment of HK $108930044.20 (including transaction costs) was included in the treasury stock of
RMB99385887.28. On May 20 2020 the Company completed the cancellation of the repurchase of 35105238 B shares reduced
the share capital of 35105238 shares and offset the surplus reserve of RMB64280649.28.② The second meeting of the ninth board of directors held by the Company on June 23 2020 deliberated and passed the proposal of
repurchase part of the Company's domestic listed foreign shares (B shares) in 2020. From July 23 2020 to September 22 2020 a
total of 14404724 shares were repurchased through centralized auction trading with the highest price of HKD3.47 per share and the
lowest price of KHD3.16 per share and the actual payment of HKD48359819.24 (including transaction fees) included in treasury
shares of RMB42748530.12 and has not been cancelled as of December 31 2020.
43. Other miscellaneous income
In RMB
Item
Opening
balance
Amount occurred in the current period
Closing
balance
Amount
before
income tax
Less: amount
written into
other gains
and
transferred
into gain/loss
in previous
terms
Less:
amount
written
into other
gains and
transferred
into
gain/loss
in
previous
terms
Less:
Income
tax
expenses
After-tax
amount
attributed
to the
parent
After-tax
amount
attributed
to
minority
shareholde
rs
1. Other misc. incomes that
cannot be re-classified into gain
and loss
-9192030.3
8
-3031873
.85
-552919.6
9
-2478954
.16
-11670
984.54
Fair value change of
investment in other equity tools
-9192030.3
8
-3031873
.85
-552919.6
9
-2478954
.16
-11670
984.54
2. Other misc. incomes that will
be re-classified into gain and loss
8716621.1
3
5955928.
19
923397.1
5
5032531.
04
137491
52.17
Cash flow hedge reserve -82252.47
6155980.
91
923397.1
5
5232583.
76
515033
1.29
Translation difference of
foreign exchange statement
42320.14
-200052.7
2
-200052.7
2
-157732
.58
Investment real estate measured at
fair value
8756553.4
6
875655
3.46
Other miscellaneous income -475409.25
2924054.
34
370477.4
6
2553576.
88
207816
7.63
44. Surplus reserves
In RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
reserves
159805930.34 11258155.90 64280649.28 106783436.96
Total 159805930.34 11258155.90 64280649.28 106783436.96
Note including explanation about the reason of the change:
① The increase of surplus reserve in the current period is due to the withdrawal of statutory surplus reserve by the Company at the
rate of 10% of the net profit in the current period in accordance with the Company law and the articles of association.② The decrease of surplus reserve in the current period is caused by the write off of surplus reserve when the cost of treasury stock
is higher than that of corresponding capital stock.
45. Retained profit
In RMB
Item Current period Last period
Adjustment on retained profit of previous period 3898626177.99 3921225872.96
Total of retained profit at beginning of year
adjusted (+ for increase - for decrease)
-39930304.63
Retained profit adjusted at beginning of year 3898626177.99 3881295568.33
Plus: Net profit attributable to owners of the
parent
382051466.98 347771182.73
Less: Statutory surplus reserves 11258155.90 105763735.27
Common share dividend payable 54413947.55 224676837.80
Closing retained profit 4215005541.52 3898626177.99
46. Operational revenue and costs
In RMB
Item
Amount occurred in the current period Occurred in previous period
Income Cost Income Cost
Main business 2859619810.94 2386064610.56 2908727515.24 2153447678.94
Other businesses 119676599.22 22363581.82 97022043.42 15728616.33
Total 2979296410.16 2408428192.38 3005749558.66 2169176295.27
Is the lower of the net profit before and after deducting the non recurring profit and loss negative
□ Yes √ No
Income information:
In RMB
Contract
classification
Division 1 Division 2 Division 3 Division 4 Division 5 Total
Type of product 2141476129.00 651249442.30 151222473.30 19978873.86 15369491.29 2979296410.16
Including:
Including:
Curtain wall
system and
materials
2141476129.00 2141476129.00
Subway screen
door and service
651249442.30 651249442.30
Real estate sales 151222473.30 151222473.30
PV power
generation
products
19978873.86 19978873.86
Others 15369491.29 15369491.29
Total 2141476129.00 651249442.30 151222473.30 19978873.86 15369491.29 2979296410.16
Information related to performance obligations:
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.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 5077713915.37 yuan of which 3390335133.12 yuan is expected to be recognized
in 2021 and 963868984.14 yuan is expected to be recognized in 2022 723509798.11 yuan It is expected that revenue will be
recognized in 2023 and beyond.The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.3 – Listed Companies Engaged in Property Development.Top-5 projects in terms of income received and recognized in the reporting period:
In RMB
No. Item Balanace
1 Fangda Town 21204468.83
47. Taxes and surcharges
In RMB
Item Amount occurred in the current period Occurred in previous period
City maintenance and construction tax 5889502.46 6853739.29
Education surtax 4261478.60 5044690.90
Property tax 4396188.94 4446647.69
Land using tax 1544528.60 1615266.99
Stamp tax 1859906.26 1978440.89
Land VAT -240313311.62 41191377.50
Others 38233.02 833007.72
Total -222323473.74 61963170.98
This year's taxes and surcharges decreased by 458.80% compared with the previous year mainly due to the fact that the Fangda Town
project developed by the subsidiary Fangda Real Estate was in line with the land value-added tax liquidation in this year and the land
value-added tax of the Fangda Town project was liquidated according to the relevant laws and regulations on land value-added tax
and liquidation methods so the land value-added tax withdrawn in previous years was reversed.
48. Sales expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 20507953.03 30325279.44
Sales agency fee 4290201.20 9693525.80
Freight and miscellaneous charges 18266.00 6262470.96
Others 2396576.25 2738809.38
Entertainment expense 3329604.62 2614670.15
Travel expense 1177774.84 2159434.19
Advertisement and promotion fee 4848901.77 2060937.53
Rental 1216955.39 898832.44
Office costs 959030.65 700706.25
Material consumption 558273.10 129520.06
Total 39303536.85 57584186.20
Others:
This year's sales expenses decreased by 31.75% compared with that of the previous year mainly due to the decrease of real estate
sales the corresponding decrease of labor and sales agency fees and the implementation of the new revenue standard to classify the
transportation expenses belonging to the performance cost into the operating cost.
49. Management expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 86696446.46 111321743.46
Maintenance costs 12178371.33 14103293.81
Agencies 11571373.19 12038870.33
Depreciation and amortization 8541764.39 9361818.02
Office expense 6542048.90 4978201.91
Entertainment expense 3656970.00 4578811.46
Rental 3477061.52 4131226.97
Lawsuit 346458.93 2774432.84
Travel expense 1679259.48 2440786.53
Property management fee 3278088.11 2232683.37
Water and electricity 482296.26 588536.13
Material consumption 245286.34 470194.27
Others 3073977.83 1423196.40
Total 141769402.74 170443795.50
50. R&D cost
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 73547580.78 36774721.22
Material costs 53080480.04 11283307.86
Agencies 6368175.89 5384796.63
Others 5550020.45 2385770.34
Rental 18674.31 2372103.83
Depreciation costs 1577800.05 883118.20
Amortization of intangible assets 1226447.53 508353.71
Travel expense 242760.29 162799.41
Total 141611939.34 59754971.20
Others:
This year's R&D expenses increased by 136.99% over the previous year mainly due to the increase in R&D project investment of the
Company's important subsidiaries.
51. Financial expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Interest expense 97682162.85 90149816.27
Less: interest capitalization 13189723.94 5819400.10
Less: discount government subsidies 2516250.00 862000.00
Less: Interest income 14654298.98 10770653.40
Exchange net loss 1310762.38 -777417.48
Acceptant discount 13143667.19 8581333.33
Commission charges and others 5237278.91 2107155.76
Total 87013598.41 82608834.38
52. Other gains
In RMB
Source Amount occurred in the current period Occurred in previous period
Government subsidies related to deferred
income (related to assets)
1743815.23 233873.90
Government subsidies related to deferred
income (related to income)
104940.00 130040.00
Government subsidies directly included in
current profits and losses (related to
income)
12503764.04 6915169.59
Other items related to daily activities and
included in other income
1060651.91 337688.80
Total 15413171.18 7616772.29
53. Investment income
In RMB
Item Amount occurred in the current period Occurred in previous period
Gains from long-term equity investment
measured by equity
-1319862.88 -2152583.08
Investment income of trading financial assets
during the holding period
-50000.00 51600871.08
Investment income from disposal of trading
financial assets
8723799.17 -43598838.65
Financial assets derecognised as a result of
amortized cost
-6148967.92 -8047524.45
Others 69798.87 288430.55
Total 1274767.24 -1909644.55
54. Income from fair value fluctuation
In RMB
Source of income from fluctuation of fair
value
Amount occurred in the current period Occurred in previous period
Investment real estate measured at fair
value
19205841.18 42608311.58
Other non-current financial assets 15458.14 9728.02
Total 19221299.32 42618039.60
55. Credit impairment loss
In RMB
Item Amount occurred in the current period Occurred in previous period
Bad debt loss of other receivables 1206557.48 12587644.72
Bad debt loss of account receivable 28614121.03 -47106079.08
Total 29820678.51 -34518434.36
56. Assets impairment loss
In RMB
Item Amount occurred in the current period Occurred in previous period
II. Inventory depreciation loss and contract
performance cost impairment loss
218619.24
12. Contract assets impairment loss 52970037.82
Total 52970037.82 218619.24
57. Assets disposal gains
In RMB
Source Amount occurred in the current period Occurred in previous period
Fixed assets impairment loss -18386.23 -101676.86
Gains or losses from disposal of other non
current assets
-233876.00
Total -252262.23 -101676.86
58. Non-business income
In RMB
Item
Amount occurred in the current
period
Occurred in previous period
Amount accounted into the
current accidental gain/loss
Penalty income 251537.00 778191.18 251537.00
Compensation received 61960.00 13377.69 61960.00
Others 209007.72 2065608.87 209007.72
Total 522504.72 2857177.74 522504.72
59. Non-business expenses
In RMB
Item
Amount occurred in the current
period
Occurred in previous period
Amount accounted into the
current accidental gain/loss
Donation 6000698.10 2272000.00 6000698.10
Loss from retirement os
damaged non-current assets
289575.87 171065.09 289575.87
Penalty and overdue fine 14164.60 117548.22 14164.60
Others 29260098.18 1405252.17 29260098.18
Total 35564536.75 3965865.48 35564536.75
Others:
Other items include the estimated liabilities of RMB27017023.60 accrued by the Company according to the most likely outcome of
the litigation due to the delay of processing the certificate. For details please refer to the description of ④ in XI 2(1).
60. Income tax expenses
(1) Details about income tax expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Income tax expenses in this period -45459035.14 28267352.94
Deferred income tax expenses 130580692.26 42004335.51
Total 85121657.12 70271688.45
(2) Adjustment process of accounting profit and income tax expense
In RMB
Item Amount occurred in the current period
Total profit 466898873.99
Income tax expenses calculated based on the legal (or applicable)
tax rates
116724718.50
Impacts of different tax rates applicable for some subsidiaries -25010841.94
Impacts of income tax before adjustment 1358245.94
Impacts of non-deductible cost expense and loss 2144536.65
Impacts of using deductible loss of unrecognized deferred
income tax assets
-405546.59
Deductible temporary difference and deductible loss of
unrecognized deferred income tax assets
1354735.38
Additional deduction of R&D expense -11374156.54
Profit and loss of associates and joint ventures calculated using
the equity method
329965.72
Income tax expenses 85121657.12
61. Other miscellaneous income
See Note VII 57.
62. Notes to the cash flow statement
(1) Other cash inflow related to operation
In RMB
Item Amount occurred in the current period Occurred in previous period
Interest income 14653465.65 10184892.89
Subsidy income 16385605.95 8114858.39
Net amount of margin such as Bill of
exchange
130234443.34 40000000.00
Retrieving of bidding deposits 3740836.61 21572620.86
Other operating accounts 4828269.56 12022109.04
Total 169842621.11 91894481.18
(2) Other cash paid related to operation
In RMB
Item Amount occurred in the current period Occurred in previous period
Sales expense 18795583.82 26841869.91
Management and R&D expenses 52371474.66 60065704.23
Bidding deposit paid 65260110.98
Net draft deposit net paid 116999688.37
Lawsuit freezing funds 22944733.36
Other trades 32303328.43 7671819.08
Total 168730497.89 234523814.95
(3) Other cash paid related to investment activities
In RMB
Item Amount occurred in the current period Occurred in previous period
Cash paid for other investment activities 135741.00
Total 135741.00
(4) Other cash received related to financing
In RMB
Item Amount occurred in the current period Occurred in previous period
Recovery of restricted funds for B-share
repurchase and others
88312942.36
Total 88312942.36
(5) Other cash paid related to financing activities
In RMB
Item Amount occurred in the current period Occurred in previous period
Repurchase amout of B shares 142856912.25 88428226.25
Money order loan margin 121280000.00 40000000.00
Total 264136912.25 128428226.25
63. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB
Supplementary information Amount of the Current Term Amount of the Previous Term
1. Net profit adjusted to cash flow related to
business operations:
-- --
Net profit 381777216.87 346761604.30
Plus: Asset impairment provision -82790716.33 34299815.12
Fixed asset depreciation gas and
petrol depreciation production goods
depreciation
23619848.31 24226272.74
Amortization of intangible assets 4253949.81 2680311.61
Amortization of long-term
amortizable expenses
1313939.81 632269.18
Loss from disposal of fixed assets
intangible assets and other long-term assets
(―-― for gains)
252262.23 101676.86
Loss from fixed asset discard
(―-― for gains)
289575.87 171065.09
Loss from fair value fluctuation
(―-― for gains)
-19221299.32 -42618039.60
Financial expenses (―-― for gains) 99390960.03 91603140.07
Investment losses (―-― for gains) -1274767.24 -6137879.90
Decrease of deferred income tax
asset (―-― for increase)
156293668.68 20257876.84
Increase of deferred income tax
asset (―-― for increase)
-25749059.03 21746458.65
Decrease of inventory (―-― for
increase)
-102647106.37 -64556366.16
Decrease of operational receivable
items (―-― for increase)
-241645927.37 -345194864.61
Increase of operational receivable
items (―-― for decrease)
224612796.61 10686250.77
Others 130234443.34 -99944421.73
Cash flow generated by business
operations net
548709785.90 -5284830.77
2. Major investment and financing activities
with no cash involved:
-- --
Debt transferred to assets
Convertible corporate bonds due within
one year
Fixed assets under finance leases
3. Net change in cash and cash equivalents: -- --
Balance of cash at period end 1024252387.39 725269902.90
Less: Initial balance of cash 725269902.90 956190890.68
Add: Ending balance of cash
equivalents
Less: Ending balance of cash
equivalents
Net increase in cash and cash
equivalents
298982484.49 -230920987.78
(2) Composition of cash and cash equivalents
In RMB
Item Closing balance Opening balance
I. Cash 1024252387.39 725269902.90
Including: Cash in stock 482.09 4244.86
Bank savings can be used at any time 1009780912.18 725255753.53
Other monetary capital can be used at
any time
14470993.12 9904.51
III. Balance of cash and cash equivalents at
end of term
1024252387.39 725269902.90
Including: restricted cash and cash
equivalent used by parent company or
subsidiaries in the Group
435587632.71 484542076.05
64. Notes to statement of change in owners’ equity
Explain the name of "other" items and the amount of adjustment for the balance at the end of last year
There is no adjustment to the balance at the end of last year.
65. Assets with restricted ownership or use rights
In RMB
Item Closing book value Reason
Monetary capital 435587632.71
Margin pledge and judicial frozen deposit
etc
Inventory 103973925.13 Credit Mortgage Mortgage Loan
Fixed assets 63229493.11 Loan by pledge
Intangible assets 19429756.30 Loan by pledge
Account receivable 38906851.06 Loan by pledge
Investment real estate 2820277340.71 Loan by pledge
Construction in process 44368937.04 Loan by pledge
100% stake in Fangda Property
Development held by the Company
200000000.00 Loan by pledge
Total 3725773936.06 --
66. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Item
Closing foreign currency
balance
Exchange rate Closing RMB balance
Monetary capital -- -- 83942295.66
Including: USD 4514782.07 6.5249 29458501.66
Euro 0.81 8.0247 6.50
HK Dollar 41704372.97 0.8416 35100067.19
INR 15665670.99 0.0891 1396500.57
Vietnamese currency 342105710.00 0.0003 96679.07
SGD 2000.30 4.9314 9864.28
AUD 3564514.96 5.0163 17880676.39
Account receivable -- -- 22108912.11
Including: USD 326973.79 6.5249 2133471.29
Euro
HK Dollar 5109501.10 0.8416 4300360.51
AUD 3124829.12 5.0163 15675080.31
Contract assets 8407693.51
Including: USD 1017415.66 6.5249 6638535.47
HK Dollar 592650.34 0.8416 498798.23
INR 14250648.37 0.0891 1270359.81
Other receivables 1087125.02
Including: USD 99109.31 6.5249 646678.33
HK Dollar 272085.00 0.8416 228997.62
INR 1803367.00 0.0891 160759.35
AUD 10105.00 5.0163 50689.71
Short-term loans 46625250.00
Including: Euro 5810000.00 8.025 46625250.00
Account payable 2718283.32
Including: USD 185398.27 6.5249 1209705.17
AUD 67927.63 0.8416 57170.61
INR 16281606.64 0.0891 1451407.54
Other payables 393471.22
Including: USD 44289.36 6.5249 288983.65
AUD 17930.00 5.0163 89942.26
HK Dollar 100.00 0.8416 84.16
Vietnamese currency 51172200.00 0.0003 14461.15
(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
67. Hedging
Hedging items and related tools qualitative and quantitative information about hedging risks:
Type Hedged item Hedging tools Hedged risk
Cash flow hedging
Forward transaction
of aluminum sheet
purchase;
Aluminum futures
contract;
The price of raw
materials has risen
leading to an
increase in expected
transaction
procurement costs;
Forward foreign
exchange
transaction
Forward foreign
exchange contract
The depreciation of
foreign currency
leads to the decrease
of actual collection
68. Government subsidy
(1) Government subsidy profiles
In RMB
Type Amount Item
Amount accounted into the
current gain/loss
Subsidized land transfer 173553.23 Deferred earning 3725.64
Special subsidy for industrial
transformation upgrading and
development
800000.00 Deferred earning
Major investment project prize
from Industry and Trade
Development Division of
Dongguan Finance Bureau
1566667.10 Deferred earning 57142.80
Distributed PV power
generation project subsidy
sponsored by Dongguan
Reform and Development
Commission
368750.21 Deferred earning 24999.96
Railway transport screen door
controlling system and
information transmission
technology
58749.53 Deferred earning 18904.32
National Industry Revitalization
and Technology Renovation
Project fund
5685712.10 Deferred earning 1591042.51
Shenzhen Science and
Technology Innovation
Committee Technology
Innovation Subsidy
95060.00 Deferred earning 104940.00
Enterprise informationization
subsidy project of Shenzhen
Small and Medium Enterprise
Service Agency
420000.00 Deferred earning 48000.00
Incentives for small and
medium-sized enterprise above
the stipulated scale
200000.00 Other gains 200000.00
Subsidy for foreign trade 30200.00 Other gains 30200.00
exhibition of Finance Bureau of
Management Committee of
Nanchang High-tech
Development Zone
Technology research and
development award of Finance
Bureau of Management
Committee of Nanchang
High-tech Development Zone
350000.00 Other gains 350000.00
Nanchang High-tech
Development Zone
Management Committee
Finance Bureau allocates
industrial incentives
145350.00 Other gains 145350.00
Technical Innovation Award for
Scientific Research Staff of
Nanchang High-tech
Development Zone
Entrepreneurship Service
Center
5000.00 Other gains 5000.00
Grant for Shenzhen Industrial
Internet development support
program
260000.00 Other gains 260000.00
Support for steady industrial
growth in Shenzhen
301000.00 Other gains 301000.00
Special fund support subsidy
for building energy efficiency
development in Shenzhen
980000.00 Other gains 980000.00
Training subsidy for strategic
management and innovative
thinking project of Shenzhen
Nanshan District Human
Resources Bureau
100000.00 Other gains 100000.00
Shenzhen patent awards and
subsidies
457500.00 Other gains 457500.00
Childbearing subsidy 106488.32 Other gains 106488.32
R&D subsidy from Shenzhen
Science and Technology
Innovation Commission
379000.00 Other gains 379000.00
Special fund for burden
reduction support of Songshan
358078.44 Other gains 358078.44
Lake enterprises
Employment subsidy 1371191.72 Other gains 1371191.72
Subsidy income from sewage
treatment
126103.20 Other gains 126103.20
Epidemic subsidy in Hong
Kong
960215.04 Other gains 960215.04
Support funds for private
economy in Xinjin Industrial
Park
139400.00 Other gains 139400.00
Epidemic electricity subsidy 470573.00 Other gains 470573.00
Epidemic rent relief subsidy 535000.00 Other gains 535000.00
VAT rebated into revenue 5056535.88 Other gains 5056535.88
Others 172128.44 Other gains 172128.44
Discount subsidy 2516250.00 Financial expenses 2516250.00
Total 24188506.21 16868769.27
(2) Government subsidy refund
□ Applicable √ Inapplicable
Others:
The value-added tax is immediately refundable income which is mainly attributed to the fact that Sun Corporation Kechuangyuan
Software belongs to a software company and enjoys the VAT rebate policy. Since the project will not form long-term assets the
Company will use it as a government subsidy related to income.
VIII. Change to Consolidation Scope
1. Disposal of subsidiaries
Single disposal of a subsidiary that may lead to loss of control
□ Yes √ No
Disposal of a subsidiary in multiple steps that lead to loss of control in the report period
□ Yes √ No
2. Change to the consolidation scope for other reasons
Change in the consolidation scope due to other reasons (such as new subsidiaries and liquidation of subsidiaries) and the situations:
Four new subsidiaries and grandchildren were added to the consolidated statements in the current period of which the
Company directly controlled was Fangda Partnership and the three indirectly controlled companies were Lifu Investment Xunfu
Investment and Jianke Hong Kong.
IX. Equity in Other Entities
1. Interests in subsidiaries
(1) Group Composition
Company Place of business
Registered
address
Business
Shareholding percentage
Obtaining method
Direct Indirect
Fangda Jianke Shenzhen Shenzhen
Designing
manufacturing
and installation of
curtain walls
98.39% 1.61% Incorporation
Fangda
Zhichuang
Shenzhen Shenzhen
Production
processing and
installation of
subway screen
doors
94.04% Incorporation
Fangda New
Material
Nanchang Nanchang
Prodution and
sales of new-type
materialsm
composite
materials and
production of
curtain walls
75.00% 25.00% Incorporation
Fangda Property Shenzhen Shenzhen
Real estate
development and
operation
99.00% 1.00% Incorporation
Fangda New
Energy
Shenzhen Shenzhen
Design and
construction of
PV power plants
99.00% 1.00% Incorporation
Chengdu Fangda Chengdu Chengdu
Trusted
processing of
building curtain
wall materials
100.00% Incorporation
Shihui
International
Virgin Islands Virgin Islands Investment 100.00% Incorporation
Dongguan New
Material
Dongguan Dongguan
Installation and
sales of building
curtain walls
100.00% Incorporation
Fangda Property
Management
Shenzhen Shenzhen
Property
management
100.00% Incorporation
Jiangxi Property
Development
Nanchang Nanchang
Real estate
development and
operation
100.00% Incorporation
Luxin New
Energy
Pingxiang Pingxiang
Design and
construction of
PV power plants
100.00% Incorporation
Xinjian New
Energy
Nanchang Nanchang
Design and
construction of
PV power plants
100.00% Incorporation
Dongguan New
Energy
Dongguan Dongguan
Design and
construction of
PV power plants
100.00% Incorporation
Kechuangyuan
Software
Shenzhen Shenzhen
Software
development
94.04% Incorporation
Zhichuang
Technology Hong
Kong
Hong Kong Hong Kong
Metro screen
door
94.04% Incorporation
Hongjun
Investment
Company
Shenzhen Shenzhen Investment 98.00% 2.00% Incorporation
Fangda Australia
Co. Ltd.
Australia Australia
Designing
manufacturing
and installation of
curtain walls
100.00% Incorporation
Fangda Cloud
Rail
Shenzhen Shenzhen
Design
development and
sales of cloud rail
transport
equipment
100.00% Incorporation
Chengda Curtain
Wall Company
Chengdu Chengdu
Building
decoration and
other construction
industry
100.00% Incorporation
Fangda Southeast
Asia
Vietnam Vietnam
Designing
manufacturing
and installation of
curtain walls
100.00% Incorporation
Shanghai Fangda
Zhijian
Shanghai Shanghai
Intelligent
technology new
energy
automated
30.00% 70.00% Incorporation
technology
Shanghai Fangda
Jianzhi
Shanghai Shanghai
Construction
technology
intelligent
technology
automation
technology
design
production and
installation of
building curtain
walls
- 100.00% Incorporation
Zhongrong Litai Shenzhen Shenzhen Business service 55.00% Purchase
Fangda
Investment
Partnership
(Limited
Partnership)
Shenzhen Shenzhen
Project
investment and
investment
consultancy
99.00% 0.52% Incorporation
Lifu Investment
Co. Ltd
Shenzhen Shenzhen
Project
investment and
investment
consultancy
52.00% Incorporation
Xunfu Investment
Co. Ltd
Shenzhen Shenzhen
Project
investment and
investment
consultancy
100.00% Incorporation
Jianke Hong
Kong Limited
Hong Kong Hong Kong 100.00% Incorporation
Note 1: Fangda Investment Partnership (limited partnership) established on August 7 2020 has a registered capital of RMB
237.7 million subscribed by the Company and Lifu Investment Co. Ltd. as of December 31 2020 the total paid in registered capital
of each party is RMB 237.7 million.Note 2: Lifu Investment Co. Ltd. was established on August 4 2020. Hongjun Investment Co. Ltd. Xunfu Investment Co.Ltd. and Shenzhen Zhuoshun Investment Co. Ltd. jointly subscribed the registered capital of RMB 1 million. As of December 31
2020 the total paid in registered capital of each party is RMB 1 million.
Note 3: Xunfu Investment Co. Ltd. was established on July 8 2020 with the registered capital of RMB 100000 subscribed
by Fangda New Energy Co. Ltd. as of December 31 2020 with the registered capital of RMB 100000 paid in by Fangda New
Energy Co. Ltd.
Note 4: The registered capital of Jianke Hong Kong Co. Ltd. was subscribed by Shihui International Co. Ltd. on May 19
2020. As of December 31 2020 the paid in registered capital of Shihui International Co. Ltd. was HKD40000.
(2) Major non wholly-owned subsidiaries
In RMB
Company
Shareholding of minority
shareholders
Profit and loss attributed
to minority shareholders
Dividend to be
distributed to minority
shareholders
Interest balance of
minority shareholders in
the end of the period
Zhongrong Litai 45.00% -7054.01 48402955.59
Fangda Zhichuang 5.96% -266664.71 17203076.60
(3) Financial highlights of major non wholly owned subsidiaries
In RMB
Compan
y
Closing balance Opening balance
Current
asset
Non-curr
ent
assets
Total of
assets
Current
liabilities
Non-curr
ent
liabilities
Total
liabilities
Current
asset
Non-curr
ent
assets
Total of
assets
Current
liabilities
Non-curr
ent
liabilities
Total
liabilities
Zhongro
ng Litai
205837
361.25
30024.8
8
205867
386.13
983052
62.61
983052
62.61
174827
165.52
30066.1
2
174857
231.64
672794
32.54
672794
32.54
Fangda
Zhichuan
g
757453
607.34
622836
69.54
819737
276.88
519869
993.38
656228
6.06
526432
279.44
In RMB
Company
Amount occurred in the current period Occurred in previous period
Turnover Net profit
Total of misc.incomes
Business
operation
cash flows
Turnover Net profit
Total of misc.incomes
Business
operation
cash flows
Zhongrong
Litai
601651.38 -15675.58 -15675.58 166931.72 39105.50 -2243507.63 -2243507.63 124134.62
Fangda
Zhichuang
651249442.
29
75181980.2
7
361192.06
70773262.6
7
2. Change in the ownership share of the subsidiary and control of the transaction of the subsidiary
(1) Description of changes in owner's equity shares of subsidiaries
On August 7 2020 Fangda Jianke a subsidiary of the Company transferred its 5.71% equity of Zhichuang Technology to
Gongqingcheng Yingfa Investment Partnership (limited partnership) with the transfer amount of RMB 26616725.71. In
addition Shenzhen Zhuoshun Investment Co. Ltd. holds 0.2491% of the equity of Zhichuang Technology Co. Ltd. through
holding Lifu Investment and the corresponding amount of equity transfer paid is RMB591747.70.
(2) Impact of transaction on minority shareholders' equity and owner's equity attributable to parent
company
In RMB
Fangda Zhichuang
Disposal consideration - cash 27208473.41
Less: share of net assets of subsidiaries calculated according to
the proportion of equity acquired / disposed
17203076.60
Difference 10005396.81
Including: adjustment of capital reserve 10005396.81
3. Interests in joint ventures or associates
(1) Financial summary of insignificant joint ventures and associates
In RMB
Closing balance/amount occurred in this
period
Opening balance/amount occurred in
previous period
Associate: -- --
Total book value of investment 55902377.95 57222240.83
Total shareholding -- --
Net profit -1319862.88 -2152583.08
--Total of misc. incomes -1319862.88 -2152583.08
X. Risks of Financial Tools
The risks associated with the financial instruments of the Company arise from the various financial assets and liabilities
recognized by the Company in the course of its operations including credit risks liquidity risks and market risks.The management objectives and policies of various risks related to financial instruments are governed by the management of
the Company. The operating management is responsible for daily risk management through functional departments (for example the
Company's credit management department reviews the Company's credit sales on a case-by-case basis). The internal audit
department of the Company conducts daily supervision of the implementation of the Company's risk management policies and
procedures and reports relevant findings to the Company's audit committee in a timely manner.The overall goal of the Company's risk management is to formulate risk management policies that minimize the risks
associated with various financial instruments without excessively affecting the Company's competitiveness and resilience.
1. Credit risk
Credit risk is caused by the failure of one party of a financial instrument in performing its obligations causing the risk of
financial loss for the other party. The credit risk of the Company mainly comes from monetary capital notes receivable accounts
receivable other receivables receivables financing contract assets etc. The credit risk of these financial assets comes from the
default of the counterparties and the maximum risk exposure is equal to the book amount of these instruments.
The Company's money and funds are mainly deposited in the commercial banks and other financial institutions. The Company
believes that these commercial banks have higher reputation and asset status and have lower credit risk.
For notes receivable accounts receivable other receivables receivables financing and contract assets the Company sets
relevant policies to control credit risk exposure. The Group set the credit line and term for debtors according to their financial status
external rating and possibility of getting third-party guarantee credit record and other factors. The Group regularly monitors debtors‘
credit record. For those with poor credit record the Group will send written payment reminders shorten or cancel credit term to
lower the general credit risk.
(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 financial restructuring; The financial difficulties of the issuer or debtor lead to the disappearance of the active market
for the financial asset; To purchase or generate a financial asset at a substantial discount which reflects the fact that a credit loss has
occurred.
Credit impairment in financial assets may be caused by a combination of multiple events not necessarily by events that can be
identified separately.
(3) Expected credit loss measurement
Depending on whether there is a significant increase in credit risk and whether a credit impairment has occurred the Company
prepares different assets for a 12-month or full expected credit loss. The key parameters of expected credit loss measurement include
default probability default loss rate and default risk exposure. Taking into account the quantitative analysis and forward-looking
information of historical statistics (such as counterparty ratings guaranty methods collateral categories repayment methods etc.)
the Company establishes the default probability default loss rate and default risk exposure model.
Definition:
The probability of default refers to the possibility that the debtor will not be able to fulfil its obligation to pay in the next 12
months or throughout the remaining period.
Breach Loss Rate means the extent of loss expected by the Company for breach risk exposure. Depending on the type of
counterparty the manner and priority of recourse and the different collateral the default loss rate is also different. The default loss
rate is the percentage of the risk exposure loss at the time of the default calculated on the basis of the next 12 months or the entire
lifetime.
Exposure to default is the amount payable to the Company at the time of default in the next 12 months or throughout the
remaining life. Prospective information credit risks significantly increased and expected credit losses were calculated. Through the
analysis of historical data the Company has identified the key economic indexes that affect the credit risk of each business type and
the expected credit loss.The largest credit risk facing the Group is the book value of each financial asset on the balance sheet. The Group makes no
guarantee that may cause the Group credit risks.
Among the accounts receivable of the Company the accounts receivable of the top five customers account for 28.36% of the
total accounts receivable of the Company (comparison period: 17.66%); among the other accounts receivable of the Company the
accounts receivable of the top five companies account for 69.65% of the total accounts receivable of the Company (comparison
period: 71.29%).
2. Liquidity risk
Liquidity risk is the risk of capital shortage when the Group needs to pay cash or settled with other financial assets. The
Company is responsible for the cash management of its subsidiaries including short-term investments in cash surpluses and loans to
meet projected cash requirements. The Company's policy is to regularly monitor short and long-term liquidity requirements and
compliance with borrowing agreements to ensure adequate cash reserves and readily available securities.
As of December 31 2020 the maturity of the Company's financial liabilities is as follows:
Contract amount: RMB
Thursday December 31 2020
Item Less than 1 year Within 1-3 years Over 3 years Total
Short-term loans 104825.03 104825.03
Notes payable 86622.45 86622.45
Account payable 124568.04 3271.34 104.08 127943.46
Employees' wage payable 6018.88 6018.88
Other payables 9139.90 3965.54 1656.09 14761.53
Non-current liabilities due in 1
year
10335.98 10335.98
Other current liabilities 10768.84 10768.84
Long-term loans 24941.15 85000.00 109941.15
Total liabilities 352279.12 32178.03 86760.17 471217.32
(Continued) Amount: RMB10000
31 December 2019
Item Less than 1 year Within 1-3 years Over 3 years Total
Short-term loans 72461.82 - - 72461.82
Notes payable 57881.60 - - 57881.60
Account payable 118979.57 0.97 96.79 119077.33
Employees' wage payable 5584.71 - - 5584.71
Other payables 68410.66 1170.99 561.59 70143.24
Non-current liabilities due in 1
year
92234.66 - - 92234.66
Other current liabilities 18169.46 - - 18169.46
Long-term loans - 39650.15 15000.00 54650.15
Total liabilities 433722.48 40822.11 15658.38 490202.97
3. Market risk
(1) Credit risks
The exchange rate risk of the Company mainly comes from the assets and liabilities of the Company and its subsidiaries in
foreign currency not denominated in its functional currency. Except for the use of Hong Kong dollars United States dollars
Australian dollars Vietnamese dong euro Indian rupees or Singapore currencies by its subsidiaries established in and outside the
Hong Kong Special Administrative Region other major businesses of the Company shall be denominated in Renminbi.
As of Thursday December 31 2020 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. 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 Group Finance Department of the Company continuously monitors the Group interest rate level. The rising interest rate
will increase the cost of the new interest-bearing debt and the interest expenditure on interest-bearing debt which has not yet been
paid by the Company at the floating rate and will have a significant adverse effect on the Company's financial performance.Management will make adjustments in time according to the latest market conditions.
As of December 31 2020 the current floating rate loan is RMB 1.97 billion. If the loan interest rate calculated by floating rate
increases or decreases by 50 basis points the net profit of the Company will decrease or increase by RMB 7.3875 million (December
31 2019: RMB 7.086 million) while other risk variables remain unchanged.
XI. Fair Value
1. Closing fair value of assets and liabilities measured at fair value
In RMB
Item Closing fair value
First level fair value Second level fair value Third level fair value Total
1. Continuous fair value
measurement
-- -- -- --
(3) Derivative financial
assets
6974448.22 6974448.22
(3) Investment in other
equity tools
17628307.59 17628307.59
2. Leased building 5628291448.40 5628291448.40
Financial assets measured
at fair value with changes
included in current profits
and losses -- investment in
financial products
4051015.05 4051015.05
Receivable financing 10727129.28 10727129.28
Other non-current
financial assets
5025186.16 5025186.16
Total assets measured at
fair value continuously
6974448.22 5628291448.40 37431638.08 5672697534.70
Derivative
financial liabilities
915234.93 915234.93
Total assets measured at
fair value continuously
915234.93 915234.93
2. Discontinuous fair
value measurement
-- -- -- --
2. Recognition basis of market value of continuous and discontinuous items measured at first level fair
value
The Group determines the fair value using quotation in an active market for financial instruments traded in an active market;
3. Valuation technique and qualitative and quantitative information for key parameters of continuous and
discontinuous second level fair value items
For investment real estate the Company adopts valuation technology to determine its fair value. The valuation techniques used are
mainly the market comparison method and the income method lease and resale model. The input value of valuation technology
mainly includes comparable market unit price market rent vacancy rate growth rate rate of return etc.
4. Valuation technique and qualitative and quantitative information for key parameters of continuous and
discontinuous third level fair value items
If there is no active market the Company uses evaluation techniques to determine the fair value. The valuation models are 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.
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 employee compensation payable accounts payables other payables and
long-term payables.XII. Related Parties and Transactions
1. Parent of the Company
Parent Registered address Business Registered capital
Share of the parent
co. in the Company
Voting power of the
parent company
Shenzhen Banglin
Technologies
Development Co.
Ltd.Shenzhen Industrial investment RMB30 million 10.87% 10.87%
Shengjiu Investment
Ltd.Hong Kong Industrial investment HKD10000 9.66% 9.66%
Particulars about the parent of the Company:
①All of the investors of Shenzhen Banglin Technology Development Co. Ltd. the holding shareholder of the Company are
natural persons. Among them Chairman Xiong Jianming is holding 85％ shares and Mr. Xiong Xi – son of Mr. Xiong Jianming is
holding 15% of the shares.
② Among the top 10 shareholders Shenzhen Banglin Technology Development Co. Ltd. and Shengjiu Investment Co. Ltd.
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 VII rights and interests in other entities.
3. Joint ventures and associates
Information about other joint ventures or associates with related transactions in this period or with balance generated by related
transactions in previous period:
Joint venture or associate Relationship with the Company
Ganshang Joint Investment Associate
4. Other associates
Other related parties Relationship with the Company
Jiangxi Business Innovative Property Joint Stock Co. Ltd. Associate
Gong Qing Cheng Shi Li He Investment Management
Partnership Enterprise (limited partner)
Affiliated relationship with Shenzhen Banglin Technology
Development Co. Ltd.
Shenyang Fangda Subsidiary in liquidation
Shenzhen Yikang Real Estate Co. Ltd. Controlled subsidiaries
Shenzhen Woke Subsidiary in liquidation
Shenzhen Qijian Technology Co. Ltd. (Qijian Technology) Common actual controller
Shenzhen Zhuo Shun Investment 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
Affiliated party Related transaction
Amount occurred in the
current period
Occurred in previous period
Qijian Technology
Property service and sales of
goods
51161.39 49494.36
Ganshang Joint Investment
Property service and sales of
goods
9834.99
(2) Related leasing
The Company is the leasor:
In RMB
Name of the leasee Category of asset for lease Rental recognized in the period Rental recognized in the period
Ganshang Joint Investment Houses & buildings 121872.30
Qijian Technology Houses & buildings 384319.68 414732.00
(4) Related guarantees
The Company is the guarantor:
In RMB10000
Beneficiary party Amount guaranteed Start date Due date Completed or not
Fangda Jianke 30000.00 18 August 2018 2020.07.31 Yes
Fangda Zhichuang 21600.00 6 August 2018 2020.07.12 Yes
Fangda Property 130000.00 3 February 2015
Wednesday March 11
2020
Yes
Fangda Jianke 10000.00 21 June 2019 2020.06.20 Yes
Fangda Jianke 25000.00 20 August 2019 2020.08.19 Yes
Fangda Jianke 40000.00 26 March 2019 2020.03.26 Yes
Fangda Jianke 30000.00 1 August 2019 2020.07.31 No
Fangda Jianke 40000.00 17 April 2019 2020.04.17 Yes
Fangda New Material 6500.00 27 June 2019 2020.06.27 Yes
Fangda New Material 8000.00 24 April 2019 2020.04.23 Yes
Fangda Zhijian 8000.00 31 July 2019 2024.07.10 No
Fangda Zhichuang 15000.00 27 May 2019 2020.05.27 Yes
Fangda Zhichuang 12000.00 26 March 2019 2020.03.26 Yes
Fangda Zhichuang 20000.00 1 August 2019 2020.07.31 Yes
Jiangxi Property
Development
20000.00 19 June 2019 2023.06.23 No
Fangda Jianke 50000.00 Tuesday July 14 2020 Thursday July 8 2021 No
Fangda Jianke 25000.00
Tuesday September 22
2020
Tuesday September 21
2021
No
Fangda Jianke 15000.00 Friday April 10 2020 Friday March 18 2022 No
Fangda Jianke 30000.00 Friday June 12 2020
Wednesday April 14
2021
No
Fangda Zhichuang 10000.00 Friday April 10 2020 Friday March 18 2022 No
Fangda Zhichuang 3000.00 29 June 2020 23 June 2020 No
Fangda Jianke 60000.00
Monday February 24
2020
13 February 2021 No
Fangda Jianke 40000.00 30 September 2020
Thursday August 19
2021
No
Fangda Zhichuang 40000.00 Tuesday July 28 2020
Wednesday June 30
2021
No
Fangda Zhichuang 15000.00 30 September 2020
Thursday August 19
2021
No
Fangda Zhichuang 20000.00 16 June 2020 13 February 2021 No
Fangda New Material 6500.00 Tuesday July 14 2020 Tuesday July 13 2021 No
Fangda New Material 8000.00 23 May 2020 22 May 2021 No
Fangda Property 135000.00 25 February 2020
Sunday February 24
2030
No
Kechuangyuan 1000.00 Sunday August 23 2020 13 February 2021 No
Fangda Jianke and
Fangda Zhichuang
14000.00
Wednesday December
18 2019
For details please refer
to the following
description of related
party guarantee (2)
No
Fangda Jianke 20000.00 Friday March 6 2020 Friday March 5 2021 No
Note to related guarantees
(1) The above-mentioned guarantees are all associated guarantees within interested entities of the Group.
(2) HSBC has a total credit of RMB140 million to the Company Fangda Jianke and Fangda Zhichuang and has not yet agreed on the
credit expiration date. HSBC regularly evaluates the credit status. The restriction on the use of the credit is as follows:
The Company can use non-financial bank guarantees of up to RMB140 million to grant credit;
Fangda Jianke has non-committed combined revolving credits of not more than RMB140 million including revolving loans of up to
RMB140 million non-financial bank guarantees of up to RMB140 million and bank acceptances of up to RMB140 million.
Fangda Jianke has non-committed combined revolving credits of not more than RMB140 million including revolving loans of up to
RMB50 million non-financial bank guarantees of up to RMB140 million and bank acceptances of up to RMB50 million.
The Company is the guarantied party:
In RMB10000
Guarantor Amount guaranteed Start date Due date Completed or not
Fangda Jianke 50000.00 26 March 2019 2020.03.26 Yes
(5) Remuneration of key management
In RMB
Item Amount occurred in the current period Occurred in previous period
Directors supervisors and senior
management
8961747.37 8656154.32
(6) Other related transactions
Hongjun Investment Xunfu Investment and Shenzhen Zhuoshun Investment Co. Ltd. (hereinafter referred to as "Zhuoshun
Investment") jointly invested to establish Lifu Investment. The registered capital of Lifu Investment is RMB1 million of which
Hongjun Investment contributes RMB490000 accounting for 49% Xunfu Investment contributes RMB30000 accounting for 3%
and Zhuoshun Investment contributes RMB480000 accounting for 48%.
6. Receivable and payables due with related parties
(1) Receivable interest
In RMB
Item Affiliated party
Closing balance Opening balance
Remaining book
value
Bad debt provision
Remaining book
value
Bad debt provision
Account receivable Qijian Technology 44268.81 442.69 1212.89 12.13
Other receivables Shenyang Fangda 42877.00 42877.00 42877.00 42877.00
Other receivables Shenzhen Woke 867442.94 867442.94 867442.94 867442.94
Other receivables
Ganshang Joint
Investment
3791089.25 56487.23 5015089.25 74724.83
Other receivables
Shenzhen Yikang
Real Estate Co. Ltd.
70000000.00 1043000.00 72000000.00 1072800.00
(2) Receivable interest
In RMB
Item Affiliated party Closing balance of book value Opening balance of book value
Other payables
Shenzhen Yikang Real Estate
Co. Ltd.
24912830.32 21581724.49
Other payables Qijian Technology 400.00
Other payables Ganshang Joint Investment 3355.36
XIII. Contingent events
1. Major commitments
Major commitments that exist on the balance sheet day
On November 6 2017 Fangda Real Estate Co. Ltd. a subsidiary of the Company and Bangshen Electronics (Shenzhen) Co.Ltd. signed the ―Joint Development Agreement on Fangda Bangshen Industrial Park (Temporary Name) Urban Renewal Project‖
and the two parties agreed to develop cooperatively. In order to develop urban renewing projects such as a ―renovation project‖
Fangda Real Estate provided Party A with property compensation through renovating and renovating the property allocation terms
agreed upon by both parties and obtained independent development rights of the project. As of December 31 2020 Fangda Real
Estate has paid a deposit of RMB20 million.
(2) In July 2018 the Company's subsidiary Fangda Real Estate Co. Ltd. (Party A) signed a contract with Shenzhen Yikang
Real Estate Co. Ltd. (Party B1) and Shenzhen Qianhai Zhongzheng Dingfeng No. 6 Investment Enterprise (Limited Partnership)
(Party B2) "Shenzhen Henggang Dakang Village Project Cooperation Agreement". Party B agrees to transfer the entire equity of the
project company it holds and the entire development interest of the project to Party A. Party A shall pay Party B a total of RMB600
million for the cooperation price. As of December 31 2020 Fangda Real Estate has paid Party B and the project company RMB50
million of deposit RMB20 million of service fee and RMB61.9372 million of equity transfer.
As of December 31 2020 the Group did not have other commitments that should be disclosed.
2. Contingencies
(1) Significant contingencies on the balance sheet date
(1) Contingent liabilities formed by material lawsuit or arbitration and their influences on the financial position
① In November 2018， Fangda Jianke a subsidiary of the Group sued Fujian Huapu Real Estate Development Co. Ltd. for a
payment of RMB 13810243.67 and its overdue interest of RMB 373380.16 totaling RMB 14183623.83 to the Taijiang District
People's Court of Fuzhou City. The case has not been decided. On 10 May 2019 the court ruled against the prosecution; On 16 May
2019 Fang Da Jianke filed an appeal; On 26 August 2019 the court of second instance ordered the court of first instance to revoke
the first instance decision; On 8 October 2019 it was sent back to the court of first instance case number: (2019) Min 0103 Republic
of China 4282. In April 2020 Huapu Company filed a counterclaim application to the court requesting Fangda Jianke Company to
pay a total of RMB12746000.00 for the construction period and quality. The two parties separately initiated project cost appraisal
and project quality appraisal. As of the date of this report the case is still under trial.② In December 2019 Fangda Jianke sued the constructors of Shaoxing Jiayue Square Project for RMB20158 046.00
RMB4660 400.00 RMB3699 100.00 and RMB2144 400.00 totally RMB30661 900.00. Thereafter Fangda Jianke increased
the number of claims totaling RMB32318 994.15. In March 2020 Jiayue Company filed a counterclaim with the court demanding
Fangda Construction Company to pay a penalty of RMB 369899.98 for the construction period RMB 13529427.00 for quality
maintenance and a compensation of RMB 22193998.74 for breach of contract damages deducting a performance bond of RMB
3699100.00 and a fine of RMB 52500.00 for a total of 39844925.72 yuan and applied to freeze RMB36.3 million of funds. In
March 2021 the two sides reached a settlement agreement. As of the date of this report RMB14.6 million has been recovered and
RMB36.3 million of frozen funds has been released. The case is closed.
③ On June 19 2019 Langfang Aomei Jiye Real Estate Development Co. Ltd. filed a lawsuit against Fangda Jianke in the People's
Court of Langfang Development Zone demanding compensation of RMB19721315.00 and filed an application for appraisal of
quality repair cost and uncompleted project cost on December 26 2019; Fangda Jianke filed a counterclaim on September 11 2019
demanding payment of RMB13920000.70 and put forward the application for completed project cost appraisal on November 22
2019. As of the date of this report the case is still in the identification process.
④ As of December 31 2020 due to the expiration of the implementation rules of the "Shenzhen Municipal People's
Government on the Administration of the Transfer of Industrial Buildings (Trial)" and the "Notice of the Municipal Planning and
Land Resources Commission on Matters Related to the Management of Industrial Building Transfers" and other reasons some
owners of Fangda Town failed to apply for the real estate certificate of Fangda Town project developed by Fangda Real Estate
Company as scheduled. As of the date of this report 20 buyers have sued Fangda Real Estate for liquidated damages for overdue
certification. Because both parties were dissatisfied with the results of the first instance appeals were filed against 11 households
whose first-instance judgments have been issued and the first-instance judgments have not yet taken effect; another 9 buyer-related
lawsuits are in the process of first-instance trial. As a result of the above-mentioned litigation the owners proposed property
preservation and the monetary fund of RMB42662416.59 of Fangda Real Estate was frozen. On December 31 2020 Fangda Real
Estate drew an estimated debt of RMB27017023.60 according to the most likely litigation result.
(2) Pending major lawsuits
On September 6 2017 Chenghua District People's Court of Chengdu Municipality sentenced Sichuan Chuta Hengyuan
Industrial Co. Ltd. to pay construction money to Fangda Jianke within 10 days from the date of the verdict 川0108民初1828号
RMB10242182.99. As of the date of this report Fangda Jianke has applied for execution and has not received the relevant payment.
On September 10 2018 the People's Court of Lixia District of Jinan City sentenced Shandong Zhonghong Real Estate Co. Ltd.to the Company for payment of RMB5960429.45 within 10 days from the date of the effective date of the (2018) Lu 0102 Minchu
5367 civil judgment. As of the date of this report Fangda Jianke has applied for execution and has not received the relevant payment.
On November 15 2019 the Chengdu Chenghua District People‘s Court ruled (2019) Chuan 0108 Min Chu No. 428 that
Sichuan Chuanta Hengyuan Industrial Co. Ltd. shall pay interest to the company within ten days from the effective date of the
judgment (subject to RMB6013 841.233 as the base from May 29 2015 to the day when the payment is paid; with RMB841876.
3235 as the base from May 28 2015 to the day when the payment is paid. Based on RMB841 876.3235 from May 28 2016 to the
day when the payment is paid). The Company enjoys the priority of compensation for the discounted or auctioned price of Building
C of the Chuan Tower supporting project (Film and Television Cultural Square) project within the scope of RMB 7697593.88.
(3) Contingent liabilities formed by providing of guarantee to other companies‘ debts and their influences on financial
situation
By December 31 2020 the Company has provided loan guarantees for the following entities:
Name of guaranteed
entity
Guarantee
Amount
(RMB100
00)
Term
Rema
rks
Fangda Zhijian Guarantee and mortgage
guarantee
723.78 7/31/2019 to 7/10/2024
Fangda Zhijian Guarantee and mortgage
guarantee
586.24 8/27/2019 to 7/10/2024
Fangda Zhijian Guarantee and mortgage
guarantee
211.98 9/27/2019 to 7/10/2024
Fangda Zhijian Guarantee and mortgage
guarantee
892.92 11/18/2019 to 7/10/2024
Fangda Zhijian Guarantee and mortgage
guarantee
837.41 12/20/2019 to 7/10/2024
Fangda Zhijian Guarantee and mortgage
guarantee
845.02 1/15/2020 to 7/10/2024
Fangda Property Guarantee pledge and
mortgage guarantee
2500.00 7/22/2019 to 7/22/2023
Fangda Property Guarantee pledge and
mortgage guarantee
2500.00 9/12/2019 to 7/22/2023
Fangda Property Guarantee pledge and
mortgage guarantee
3000.00 9/26/2019 to 7/22/2023
Fangda Property Guarantee pledge and
mortgage guarantee
2000.00 9/29/2019 to 7/22/2023
Fangda Property Guarantee pledge and
mortgage guarantee
5000.00 10/31/2019 to 7/22/2023
Fangda Property Guarantee pledge and
mortgage guarantee
4032.15 3/9/2020 to 7/22/2023
Fangda Property Guarantee and mortgage
guarantee
97147.63 3/13/2020 to 3/12/2030
Fangda Zhichuang Pledge guarantee 3004.55 6/29/2020 to 6/23/2021
Kechuangyuan Guarantee 1001.33 8/23/2020 to 2/13/2021
Total 124283.01
Note 1: Contingent liabilities caused by guarantees provided for other entities are all related guarantees between interested
entities in the Group.Notes 2: The Group‘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 2020 the Company assumed the above-mentioned phased guarantee
amount of RMB 176 million.
(3) Other contingent liabilities and their influences
As of December 31 2020 the Group did not have other commitments that should be disclosed.
3. Others
Status of non-revocation of company as at December 31 2020：
Currency
Guarantee balance
(original currency)
Deposit (RMB) Credit line used (RMB)
RMB yuan 565822445.92 608750.00 565213695.92
INR 87299635.00 688522.32 7093716.34
HK $(HKD) 15349982.00 - 12919158.85
United States dollars
(USD)
9118856.22 2542479.27 56957145.68
Total 3839751.59 642183716.79
XIV. Post-balance-sheet events
1. Profit distribution
In RMB
Profit or dividend to be distributed 0.00
Profit or dividend approved to be distributed 0.00
2. Notes to other issues in post balance sheet period
As of March 19 2021 (the report date approved by the board of directors) the Company has no other events after the balance
sheet date that should be disclosed.
XV. Other material events
1. Suspension of operations
There is no net profit from discontinued operations in the current period.
2. Segment information
(1) Recognition basis and accounting policy for segment report
The Group divides its businesses into five reporting segments. The reporting segments are determined based on financial
information required by routine internal management. The Group‘s management regularly review the operating results of the
reporting segments to determine resource distribution and evaluate their performance.The reporting segments are:
(1) Curtain wall segment production and sales of curtain wall materials construction curtain wall design production and
installation;
(2) Rail transport segment: assembly and processing of metro screen doors;
(3) Real estate segment: development and operating of real estate on land of which land use right is legally obtained by the
Company; property management;
(4) New energy segment: photovoltaic power generation photovoltaic power plant sales photovoltaic equipment R & D
installation and sales and photovoltaic power plant engineering design and installation
(5) Others
The segment report information is disclosed based on the accounting policies and measurement standards used by the
segments when reporting to the management. The policies and standards should be consistent with those used in preparing the
financial statement.
(2) Financial information
In RMB
Item Curtain wall Rail transport Real estate New energy Others
Offset between
segments
Total
Turnover
2145502203.
32
651249442.29 154796147.79 20793720.48 24854861.48 17899965.20
2979296410.
16
Including:
external
transaction
income
2141476129.
47
651249442.29 151222473.25 19978873.86 15369491.29
2979296410.
16
Inter-segment
transaction
income
4026073.85 3573674.54 814846.62 9485370.19 17899965.20
Including:
major business
turnover
2114735373.
48
650229832.44 78249405.70 20793720.48 4388521.16
2859619810.
94
Operating cost
1775011443.
03
515384288.26 118261840.46 7703442.37 549538.73 8482360.47
2408428192.
38
Including:
major business
cost
1758564624.
45
515183608.76 113064904.92 7535695.83 8284223.40
2386064610.
56
Operation cost 144743016.91 46775657.21
-163373503.2
1
-48896.88
-126143961.9
4
-166974999.6
7
68927311.76
Operating
profit/(loss)
225747743.38 89089496.82 199907810.54 13139174.99 150449284.69 176392604.40 501940906.02
Total assets
3868365355.
92
819737276.88
6484074654.
46
164233550.71
3051473881.
42
2521027469.
00
11866857250
.39
Total liabilities
2435131053.
01
526432279.44
3938256749.
09
66413211.24 710149093.75
1256921127.
62
6419461258.
91
(3) Others
① Large negative amount of operating expenses of real estate segment in current period is mainly due to the fact that the Fangda
Town project developed by the subsidiary Fangda Real Estate was in line with the land value-added tax liquidation in this year and
the land value-added tax of the Fangda Town project was liquidated according to the relevant laws and regulations on land
value-added tax and liquidation methods so the land value-added tax withdrawn in previous years was reversed.② Since more than 90% of the Group‘s revenue comes from Chinese customer and 90% of the Group‘s assets are in China no
detailed regional information is needed.XVI. Notes to Financial Statements of the Parent
1. Account receivable
(1) Account receivable disclosed by categories
In RMB
Type
Closing balance Opening balance
Remaining book
value
Bad debt provision
Book
value
Remaining book
value
Bad debt provision
Book value
Amount
Proportio
n
Amount
Provision
rate
Amount
Proportio
n
Amount
Provision
rate
Including:
Account receivable
for which bad debt
892363. 100.00% 6514.35 0.73% 885849.0 301522.4 100.00% 3708.73 1.23% 297813.76
provision is made by
group
43 8 9
Including:
Total
892363.
43
100.00% 6514.35 0.73%
885849.0
8
301522.4
9
100.00% 3708.73 1.23% 297813.76
Provision for bad debts by combination:
In RMB
Name
Closing balance
Remaining book value Bad debt provision Provision rate
Portfolio 3. Others 892363.43 6514.35 0.73%
Total 892363.43 6514.35 --
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses please
refer to the disclosure of other receivables to disclose information about bad debts:
□ Applicable √ Inapplicable
Account age
In RMB
Age Remaining book value
Within 1 year (inclusive) 892363.43
Total 892363.43
(2) Bad debt provision made returned or recovered in the period
Bad debt provision made in the period:
In RMB
Type Opening balance
Change in the period
Closing balance
Provision
Written-back or
recovered
Canceled Others
Portfolio 3.Others
3708.73 2805.62 6514.35
Total 3708.73 2805.62 6514.35
(3) Balance of top 5 accounts receivable at the end of the period
In RMB
Entity
Closing balance of accounts
receivable
Percentage (%)
Balance of bad debt provision at
the end of the period
Top five summary 854694.97 95.78% 6239.27
Total 854694.97 95.78%
2. Other receivables
In RMB
Item Closing balance Opening balance
Other receivables 1156802204.91 1973381342.74
Total 1156802204.91 1973381342.74
(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 150699.54 70699.54
Staff borrowing and petty cash 15881.12
Debt by Luo Huichi 12992291.48 12992291.48
Others 975476.54 983435.52
Accounts between related parties within
the scope of consolidation
1156587949.46 1973222410.41
Total 1170706417.02 1987284718.07
2) Method of bad debt provision
In RMB
Bad debt provision
First stage Second stage Third stage
Total
Expected credit
losses in the next 12
months
Expected credit loss for the
entire duration (no credit
impairment)
Expected credit loss for the
entire duration (credit
impairment has occurred)
Balance on Wednesday
January 1 2020
2403.91 13900971.42 13903375.33
Balance on Wednesday
January 1 2020 in the
current period
—— —— —— ——
Provision 836.78 836.78
Balance on Thursday
December 31 2020
3240.69 13900971.42 13904212.11
Changes in book balances with significant changes in the current period
□ Applicable √ Inapplicable
Account age
In RMB
Age Remaining book value
Within 1 year (inclusive) 1156734746.06
Over 3 years 13971670.96
3-4 years 42877.00
4-5 years 865802.94
Over 5 years 13062991.02
Total 1170706417.02
3) Bad debt provision made returned or recovered in the period
Bad debt provision made in the period:
In RMB
Type
Opening
balance
Change in the period
Closing balance
Provision
Written-back or
recovered
Canceled Others
Other receivables
and bad debt
provision
13903375.3
3
836.78 13904212.11
Total
13903375.3
3
836.78 13904212.11
4) Balance of top 5 other receivables at the end of the period
In RMB
Entity By nature Closing balance Age Percentage (%)
Balance of bad debt
provision at the end
of the period
Fangda Property Associate accounts 903710133.45 Less than 1 year 77.19%
Fangda New Material Associate accounts 74130005.26 Less than 1 year 6.33%
Fangda New Energy Associate accounts 63752804.89 Less than 1 year 5.45%
Fangda Property
Development
Associate accounts 48839038.54 Less than 1 year 4.17%
Fangda Jianke Associate accounts 34443444.67 Less than 1 year 2.94%
Total -- 1124875426.81 -- 96.09%
3. Long-term share equity investment
In RMB
Item
Closing balance Opening balance
Remaining book
value
Impairment
provision
Book value
Remaining book
value
Impairment
provision
Book value
Investment in
subsidiaries
1196831253.00 1196831253.00 963508253.00 963508253.00
Total 1196831253.00 1196831253.00 963508253.00 963508253.00
(1) Investment in subsidiaries
In RMB
Invested entity
Opening book
value
Change (+-)
Closing book
value
Balance of
impairment
provision at the
end of the
period
Increased
investment
Decreased
investment
Impairment
provision
Others
Fangda Jianke
491950000.0
0
491950000.00
Fangda New
Material
74496600.00 74496600.00
Fangda Property
200000000.0
0
2000000.00 198000000.00
Shihui
International
61653.00 61653.00
Fangda New
Energy
99000000.00 99000000.00
Hongjun
Investment
Company
98000000.00 98000000.00
Fangda Property
235323000.0
0
235323000.00
Total
963508253.0
0
235323000.0
0
2000000.00
1196831253.
00
4. Operational revenue and costs
In RMB
Item
Amount occurred in the current period Occurred in previous period
Income Cost Income Cost
Other businesses 24471432.70 549538.73 28729890.94 773571.29
Total 24471432.70 549538.73 28729890.94 773571.29
Income information:
In RMB
Contract classification Division 1 Division 2 Total
Type of product 24471432.70 24471432.70
Including:
Other businesses 24471432.70 24471432.70
Total 24471432.70 24471432.70
Information related to performance obligations:
The Company's operating income is derived from property rental income.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 37519109.00 yuan of which 21644236.55 yuan is expected to be recognized in
2021 and 13256342.81 yuan is expected to be recognized in 2022 2618529.64 yuan is expected to be recognized in 2023 and
beyond.
5. Investment income
In RMB
Item Amount occurred in the current period Occurred in previous period
Gains from long-term equity investment
measured by costs
1084912000.00
Investment gain obtained from disposal of
long-term equity investment
135159744.95
Investment income from disposal of trading
financial assets
3057897.96 2221456.16
Total 138217642.91 1087133456.16
XVII. Supplementary Materials
1. Detailed accidental gain/loss
√ Applicable □ Inapplicable
In RMB
Item Amount Notes
Gain/loss of non-current assets -541838.10
Subsidies accounted into the current income
account (except the government subsidy
closely related to the enterprise‘s business
12872885.30
and based on unified national standard
quota)
Gain/loss from change of fair value of
transactional financial asset and liabilities
and investment gains from disposal of
transactional and derivative financial assets
and liabilities and sellable financial assets
other than valid period value instruments
related to the Company‘s common
businesses
8759056.18
Write-back of impairment provision of
receivables and contract assets for which
impairment test is performed individually
0.00
Gain/loss from commissioned loans 393485.98
Gain/loss from change of fair value of
investment property measured at fair value
in follow-up measurement
19205841.18
Other non-business income and expenditures
other than the above
-34752456.16
Less: Influenced amount of income tax 778490.70
Influenced amount of minority
shareholders‘ equity
75746.32
Total 5082737.36 --
Explanation statement should be made for accidental gain/loss items defined and accidental gain/loss items defined as regular
gain/loss items according to the Explanation Announcement of Information Disclosure No. 1 - Non-recurring gain/loss mentioned.
□ Applicable √ Inapplicable
2. Net income on asset ratio and earning per share
Profit of the report period Weighted average net income/asset ratio
Earning per share
Basic earnings per share
(yuan/share)
Diluted Earnings per
share (yuan/share)
Net profit attributable to common
shareholders of the Company
7.26% 0.35 0.35
Net profit attributable to the
common owners of the PLC after
deducting of non-recurring
gains/losses
7.16% 0.34 0.34
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
Chapter 13 Documents for Reference
1. The Annual Report 2020 and the Summary with signature of the legal representative (Chinese and English);
2. Accounting Statements with signatures and seals of the legal representative and financial principal and chief of accounting
department;
3. Original copy of the Auditors‘ Report under the seal of the CPA and signed by and under the seal of certified accountants;
4. Originals of all documents and manuscripts of Public Notices of the Company disclosed in public in the newspapers as designated
by China Securities Regulatory Commission.
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