Annual Report 2024 of China Fangda Group Co. Ltd.China Fangda Group Co. Ltd.2024 Annual Report
April 2025
1Annual Report 2024 of China Fangda Group Co. Ltd.
2024 Annual Report
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.This annual report contains forward-looking statements such as future
plans which do not constitute a substantial commitment by the Company to
investors. Investors and related parties should maintain sufficient risk
awareness and understand the differences between plans forecasts and
commitments.The company has described the existing market risks management risks
and production and operation risks in this report. Please refer to the risks that
may be faced mentioned in"11. Prospects for the Company's Future
Development" in III Management Discussion and Analysis.The Board meeting reviewed and approved the profit distribution preplan:
2Annual Report 2024 of China Fangda Group Co. Ltd.
distributing cash dividend of RMB0.50 (tax included) for each ten shares to all
shareholders on the basis of 1073874227 shares of the Company and no
dividend share is issued to shareholders. No reserve is capitalized.
3Annual Report 2024 of China Fangda Group Co. Ltd.
Contents
Chapter 1 Important Statement Table of Contents an....2
Chapter II About the Company and Financial Highlig.. 10
I. Company profiles .................................10
II. Contacts and liaisons .......................... 10
III. Information disclosure and inquiring .......... 10
IV. Registration changes ........................... 11
V. Other information ................................11
VI. Financial Highlight .............................11
VII. Differences in accounting data under domestic.. 12
VIII. Financial highlights by quarters ............. 12
IX. Accidental gain/loss item and amount ........... 13
Chapter III Management Discussion and Analysis ..... 14
I. Major businesses of the Company during the repo...14
II. Core Competitiveness Analysis ...................19
III. Industry Situation During the Reporting Perio...22
IV. Core Business Analysis ......................... 30
V. Non-core Business Analysis .......................38
VI. Assets and Liabilities ......................... 38
VII. Investment .....................................40
VIII. Major assets and equity sales ................ 44
IX. Analysis of major joint stock companies ........ 44
X. Structural entities controlled by the Company ....45
XI. Future Prospect .................................45
XIII. Status of Formulation and Implementation of Market Value Management System and
Valuation Enhancement Plan ..........................49
XIV. Implementation Status of the "Dual Enhancemen.. 49
Chapter IV Corporation Governance ...................50
I. Overview .........................................50
II. The independence of the Company relative to the controlling shareholders and actual controllers
in ensuring the Company's assets personnel finance...50
III. Competition ....................................50
IV. Annual and extraordinary shareholder meetings .. 51
V. Particulars about the Directors Supervisors and.. 51
VI. Performance of directors during the report per.. 57
VII. Special committees under the board of directo...60
VIII. Performance of Supervisory Committee ..........61
IX. Employees .......................................63
X. Profit distribution of the Company and conversi...64
XI. Share incentive schemes staff shareholding pro.. 65
XII. Construction and implementation of internal c...66
XIII. Management and control of subsidiaries durin.. 66
XIV. Internal control evaluation report or interna.. 66
4Annual Report 2024 of China Fangda Group Co. Ltd.
XV. Rectification of problems in self inspection of special actions for governance of listed companies .68
Chapter V. Environmental and social responsibility.. 69
1. Major environmental problem ..................... 69
2. Social responsibilities ..........................70
3. Consolidate and expand the achievements of pove.. 70
Chapter VI Significant Events ...................... 71
I. Performance of promises ......................... 71
II. Non-operating capital use by the controlling shareholder or related parties in the reporting term . 71
III. Incompliant external guarantee .................71
IV. Description of the board of directors on the l...71
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 .. 71
VI. Description of changes in accounting policies accounting estimates or correction of major
accounting errors compared with the financial repo.. 71
VII. Statement of change in the financial statement consolidation scope compared with the previous
financial report ................................... 73
VIII. Engaging and dismissing of CPA ............... 73
IX. Delisting after disclosure of annual report .....73
X. Bankruptcy and capital reorganizing ............. 74
XI. Significant lawsuit and arbitration .............74
XII. Punishment and rectification ...................74
XIII. Credibility of the Company controlling share...74
XIV. Material related transactions ..................74
XV. Significant contracts and performance .......... 75
XVI. Other material events ..........................82
XVII. Material events of subsidiaries .............. 82
Chapter VII Changes in Share Capital and Sharehold.. 83
I. Changes in shares ............................... 83
II. Share placing and listing ...................... 85
III. Shareholders and the substantial controller o.. 85
IV. Specific implementation of share repurchase in.. 89
Chapter VIII Preferred Shares .......................90
Chapter IX Information about the Company's Securit...90
Chapter X Financial Statements ......................91
I. Auditor's report ................................ 91
II. Financial statements ........................... 98
III. General Information .......................... 116
IV. Basis for the preparation of financial stateme. 117
V. Significant Account Policies and Estimates ..... 118
VI. Taxation ...................................... 185
VII. Notes to the consolidated financial statement. 187
Note: The decrease in the statutory surplus reserve during the current period is due to the fair value change
of the Company's other equity instrument investments in Shenyang Fangda. As the Company has gone
bankrupt during the current period the recognition has been terminated and the amount has been
5Annual Report 2024 of China Fangda Group Co. Ltd.
transferred from other comprehensive income to ret. 226
VIII. R&D expenses ................................ 240
IX. Change to Consolidation Scope ..................240
X. Equity in Other Entities ....................... 241
XI. Government Subsidies .......................... 247
XII. Risks of Financial Tools ......................247
XIII. Fair Value .................................. 255
XIV. Related Parties and Transactions ............. 256
XV. Commitment and Contingent Events .............. 260
XVI. Post-balance-sheet Events .....................266
XVII. Other material events ....................... 266
XVIII. Notes to Financial Statements of the Parent..268
XIX. Supplementary Materials ...................... 274
6Annual Report 2024 of China Fangda Group Co. Ltd.
7Annual Report 2024 of China Fangda Group Co. Ltd.
Reference
1. Financial statements stamped and signed by the legal representative CFO and accounting manager;
2. Original copy of the Auditors' Report under the seal of the CPA and signed by and under the seal of certified accountants;
3. Originals of all documents and manuscripts of Public Notices of the Company disclosed in public.
8Annual Report 2024 of China Fangda Group Co. Ltd.
Definitions
Terms Refers to Description
Fangda Group company the Company Refers to China Fangda Group Co. Ltd.Articles of Association Refers to Articles of Association of China Fangda Group Co. Ltd.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.Shengjiu Co. Refers to Shengjiu Investment Ltd.Fangda Jianke Refers to Shenzhen Fangda Jianke Group Co. Ltd.Fangda Zhiyuan Refers to Fangda Zhichuang Technology Co. Ltd.Fangda Jiangxi New Material Refers to Fangda New Materials (Jiangxi) Co. Ltd.Fangda New Resource Refers to Shenzhen Fangda New Energy Co. Ltd.Fangda Property Refers to Shenzhen Fangda Property Development Co. Ltd.Fangda Chengdu Technology Refers to Chengdu Fangda Construction Technology Co. Ltd.Fangda Dongguan New Material Refers to Dongguan Fangda New Material Co. Ltd.Kechuangyuan Software Refers to Shenzhen Qianhai Kechuangyuan Software Co. Ltd.Fangda Property Refers to Shenzhen Fangda Property Management Co. Ltd.Fangda Jiangxi Property Refers to Fangda (Jiangxi) Property Development Co. Ltd.Fangda Hongjun Investment Refers to Shenzhen Hongjun Investment Co. Ltd.Shenzhen Fangda Investment Partnership (Limited
Fangda Investment Refers to
Partnership)
Fangda Yunzhu Refers to Shenzhen Fangda Yunzhu Technology Co. Ltd.Fangda Zhijian Refers to Shanghai Fangda Zhijian Technology Co. Ltd
Jiangxi Fangda Intelligent Manufacturing Technology Co.Fangda Intelligent Manufacturing Refers to
Ltd.SZSE Refers to Shenzhen Stock Exchange
9Annual Report 2024 of China Fangda Group Co. Ltd.
Chapter II About the Company and Financial Highlights
I. Company profiles
Stock ID Fangda Group Fangda B Stock code 000055 200055
Modified stock ID (if any) No
Stock Exchange Shenzhen Stock Exchange
Chinese name China Fangda Group Co. Ltd.Chinese abbreviation Fangda Group
English name (if any) CHINA FANGDAGROUP CO.LTD.English abbreviation (if any) CFGC
Legal representative Xiong Jianming
Fangda Technology Building Kejinan 12th Avenue High-tech Zone Hi-tech Park South
Registered address
Zone Nanshan District Shenzhen PR China.Zip code 518057
Changes in the Company's registered
No
address
39th Floor Building T1 Fangda Town No.2 Longzhu 4th Road Nanshan District
Office address
Shenzhen
Zip code 518055
Website http://www.fangda.com
Email fd@fangda.com
II. Contacts and liaisons
Secretary of the Board Representative of Stock Affairs
Name Ye Zhiqing Guo Linchen
39th Floor Building T1 Fangda Town No.2 39th Floor Building T1 Fangda Town No.2
Address
Longzhu 4th Road Nanshan District Shenzhen Longzhu 4th Road Nanshan District Shenzhen
Telephone 86(755) 26788571 ext. 6622 86(755) 26788571 ext. 6622
Fax 86(755)26788353 86(755)26788353
Email zqb@fangda.com zqb@fangda.com
III. Information disclosure and inquiring
Website of the stock exchange where the
Shenzhen Stock Exchange http://www.szse.cn
Company discloses its annual report
Names and websites of the media where the China Securities Journal Security Times Shanghai Securities Daily
Company discloses its annual report Securities Daily Hong Kong Commercial Daily and www.cninfo.com.cn
39th Floor Building T1 Fangda Town No.2 Longzhu 4th Road Nanshan
Place for information inquiry
District Shenzhen
10Annual Report 2024 of China Fangda Group Co. Ltd.
IV. Registration changes
Unified Social Credit Code 91440300192448589C
Changes in main businesses since the listing of the Company None
Changes in the controlling shareholders (if any) None
V. Other information
Public accountants employed by the Company
Public accountants RSM Thornton (limited liability partnership)
90122 to 90126 Foreign Trade Building No.22 Fuchengmenwai Street Xicheng
Address
District Beijing China
Signing accountant names Zhou Junchao Liu Gen 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
VI. Financial Highlight
Whether the Company needs to make retroactive adjustment or restatement of financial data of previous years
□ Yes□ No
Increase/decre
202420232022
ase
Turnover (yuan) 4424224197.71 4292204716.01 3.08% 3846975948.44
Net profit attributable to
shareholders of the listed 144813705.53 272758249.50 -46.91% 282933854.32
company (yuan)
Net profit attributable to the
shareholders of the listed
159778410.13272138072.87-41.29%270965220.96
company and after deducting of
non-recurring gain/loss (yuan)
Net cash flow generated by
270894093.43299742202.08-9.62%221211632.30
business operation (yuan)
Basic earnings per share
0.130.25-48.00%0.26
(yuan/share)
Diluted Earnings per share
0.130.25-48.00%0.26
(yuan/share)
Decrease by
Weighted average net 2.26
2.41%4.67%5.03%
income/asset ratio percentage
points
Increase/decre
ase from the
End of 2024 End of 2023 End of 2022
end of last
year
Total asset (yuan) 13555387225.21 13376351856.86 1.34% 12745185294.02
11Annual Report 2024 of China Fangda Group Co. Ltd.
Net profit attributable to the
shareholders of the listed 6125803906.35 5960140567.07 2.78% 5749940874.92
company (RMB)
The company's annual revenue for 2024 increased by 3.08% while the net profit attributable to shareholders of the listed company
decreased by 46.91%. The main reasons for the decline in net profit are: a decrease in the gross margin of the curtain wall and new
materials industries which led to a 1.61 percentage point decrease in the overall gross margin for the period; and the impact of the
real estate industry which caused delays in project settlement and payment collection leading to an increase in the provision for
bad debts of accounts receivable for the period.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
VII. 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.VIII. Financial highlights by quarters
In RMB
Q1 Q2 Q3 Q4
Turnover 915576687.71 1218268900.05 1072709446.52 1217669163.43
Net profit attributable to the
shareholders of the listed 51467996.23 65327121.39 32916073.08 -4897485.17
company
Net profit attributable to the
shareholders of the listed
50881206.2660807899.1329591488.3218497816.42
company and after deducting of
non-recurring gain/loss
Cash flow generated by business
-295706302.26124175304.0518286417.04424138674.60
operations net
Where there is difference between the above-mentioned financial data or sum and related financial data in quarter report and
interim report disclosed by the Company
□ Yes□ No
12Annual Report 2024 of China Fangda Group Co. Ltd.
IX. Accidental gain/loss item and amount
□Applicable □ Inapplicable
In RMB
Item 2024 2023 2022 Notes
Non-current asset disposal gain/loss
(including the write-off part for which -1101723.90 381572.12 -1421880.09
assets impairment provision is made)
Government grants recognized in the
current period's profit or loss (except for
government grants that are closely
related to the Company's normal business
12652732.818781578.5210138362.96
operations in line with national policies
and in accordance with defined criteria
and have a continuous impact on the
Company's profit or loss)
Gains and losses from changes in the fair
value of financial assets and liabilities
held by non-financial corporations and
gains and losses from the disposal of
-1663158.03509477.494666147.76
financial assets and liabilities except for
effective hedging operations related to
the Company's normal business
operations
Capital using expense charged to non-
financial enterprises and accounted into 3790999.98 8619807.35
the current income account
Write-back of impairment provision of
receivables for which impairment test is 13228201.06 6138338.91
performed individually
Gain/loss from debt reorganization -118701.78
This amount
was spent on
employee
resettlement
One-time expenses incurred by the
associated
Company due to discontinuation of
-10301966.12 with the
certain business activities such as
relocation of
expenditures for employee resettlement:
the
Company's
production
site.Gain/loss from change of fair value of
investment property measured at fair -18397296.67 -28482701.26 -10095973.89
value in follow-up measurement
Other non-business income and
87650.881262814.78-2764570.20
expenditures other than the above
Less: Influenced amount of income tax -3890432.45 -1262507.89 3172419.69
Influenced amount of minority
12674.24114273.95139179.75
shareholders' equity (after-tax)
Total -14964704.60 620176.63 11968633.36 --
13Annual Report 2024 of China Fangda Group Co. Ltd.
Other gain/loss items satisfying the definition of non-recurring gain/loss account:
□ Applicable□ Inapplicable
The Company has no other gain/loss items satisfying the definition of non-recurring gain/loss account
Circumstance that should be defined as recurrent profit and loss to Explanation Announcement of Information Disclosure No. 1 -
Non-recurring gain/loss
□ Applicable□ Inapplicable
Chapter III Management Discussion and Analysis
I. Major businesses of the Company during the report period
The Company primarily engages in high-end smart curtain wall systems and new materials intelligent platform screen door
equipment and systems for rail transit new energy commercial management and services among other businesses. The
Company's main products smart curtain walls and intelligent platform screen door equipment and systems for rail transit have
become global industry benchmarks. The urban rail transit platform screen door system has been recognized by the Ministry of
Industry and Information Technology as a "Single Champion Product in Manufacturing" and the comprehensive strength of the
smart curtain wall system ranks among the top in the industry. The Company currently has 7 national high-tech enterprises 6
"specialized refined and innovative" enterprises 2 "national intellectual property advantage enterprises" 1 "national quality
leader enterprise" and 2 provincial engineering technology research centers.With "digital intelligence empowerment and scientific management" as its core the Company vigorously promotes the
intelligent manufacturing + AI strategy across various industries. Through measures such as technological innovation market
expansion system optimization and talent cultivation the Company has built an efficient management and operation system. By
leveraging the dual drivers of globalization and intelligence the Company promotes the high-quality development of its business
segments.During the reporting period the Company's overall operating condition was good achieving an operating income of
RMB4424224200 a net profit attributable to shareholders of the parent company of RMB144813700 and a net operating cash
flow of RMB270894100. As of the end of the reporting period the Company's order backlog was RMB8287395900 which is
1.87 times the revenue for 2024 providing important support for the Company's continued healthy development.
(I) Smart curtain wall systems and new materials
* Implementation of intelligent manufacturing + AI strategy to accelerate the development of new quality
productivity
"5G + Smart Factory" commissioning: To promote high-quality development the Company has implemented an
intelligent manufacturing + AI strategy in project management factory production and operation maintenance continuously
empowering the Company's development and accelerating the development of new quality productivity. During the reporting
period the Fangda (Ganzhou) Low-Carbon Intelligent Manufacturing Base project constructed by the Company was put into
operation. This base is a "5G + Smart Factory" integrating 5G digitalization IoT and intelligence. The Company has fully
implemented end-to-end digital management becoming the industry's first enterprise to achieve full-process coverage with an ERP
system. Through intelligent logistics technologies such as AGV unmanned vehicles and automatic conveyors product turnover
efficiency has been comprehensively improved striving for lean production with "zero damage zero stagnation". The digital
control system allows production pacing to be precise to the "second" level and the workshop's digital management meets the
international 8S standards greatly enhancing the level of intelligence and digitalization in production. The Coating Center is
recognized by the Ministry of Ecology and Environment as a national "Green Island Project". Through the co-construction and
sharing of intensive environmental protection infrastructure unified treatment of pollutants and resource recycling within the park
14Annual Report 2024 of China Fangda Group Co. Ltd.
are achieved actively responding to the national "dual carbon" goals and becoming an industry benchmark for green
manufacturing. The project integrates innovative technologies such as AI layout and automatic paint mixing with color difference
control precision reaching the industry's top level."Intelligent manufacturing + AI" empowering industrial development: During the reporting period the Company
established a special team for "Intelligent Manufacturing + AI" to coordinate digital transformation. Relying on the collaborative
development of five major industrial bases in Shenzhen Dongguan Shanghai Chengdu and Ganzhou an intelligent rapid
response mechanism for "order-design-production" was established shortening the product delivery cycle and empowering
industries through AI applications. During the reporting period the Company's operating income from the curtain wall systems
and materials industry was RMB3555996900 an increase of 2.27% compared to the same period last year.In the product R&D and design phase the feasibility and economic viability of solutions are quickly iterated and verified
using AI+BIM-driven parametric tools. Additionally technologies such as feature coding are used to achieve precise parameter
calls thereby improving design efficiency and accuracy. Furthermore combining topology optimization algorithms allows for
reasonable control of material usage while meeting mechanical performance requirements reducing carbon emissions.In the product production phase AI-assisted optimization of production processes is carried out combined with intelligent
equipment and the Company's self-developed MES system to improve overall production efficiency.In the product installation phase AI assists in optimizing construction sequences shortening construction time. By
combining drone aerial photography and CV technology AI assists in identifying quality and safety issues during construction
effectively reducing quality and safety risks.Construction of "Digital Fangda": During the reporting period the Company accelerated the advancement of the "Digital
Fangda" construction. Building on the self-developed PMS project management platform MES production management platform
VPO supplier management platform and quality and safety management platform the Company completed the development and
application of a contract management platform refined management platform and cost management system. Through AI
technology the Company achieved comprehensive information management across the entire chain of contract execution enabling
full monitoring and real-time sharing from material supply production status factory processing progress to project management
status. This greatly simplified the process of information data processing and provided real-time business data support for
management decision-making meeting the refined management requirements for curtain wall products.* Deepening technological innovation and accelerating the transformation of innovative achievements
Building a collaborative industry-university-research platform: The Company is committed to building a collaborative
industry-university-research platform which has become an important model for innovation-driven development. During the
reporting period the Company collaborated with Jinan University to develop the cable and ring beam composite curtain wall
system fully leveraging their respective technical advantages in the fields of architectural curtain walls and finite element
simulation analysis. The research results were successfully applied to the "Shenzhen China Resources Snow Headquarters
Building" curtain wall project achieving breakthroughs in the stability of large-span curved cable curtain walls high-altitude
precision installation processing of special-shaped materials and environmental adaptation technologies. This overcame the
construction challenges of high-rise curved cable curtain walls was recognized as an industry benchmark case and enhanced the
Company's scientific research capabilities in the high-end curtain wall field.Launching multiple green innovative products: The Company actively responds to national energy-saving and carbon-
reduction policies focusing on the fields of green energy-saving prefabricated new materials and high-end curtain wall systems.Relying on its advantage as the Guangdong Province Prefabricated Building Curtain Wall Engineering Technology Research
Center the Company vigorously conducts technical research and product innovation accelerates technological innovation and
achievement transformation continuously breaks through key core technologies and meets the diverse application scenario needs
of customers. During the reporting period the Company launched several green innovative products including the green low-
carbon inorganic fiber-free board curtain wall system special curved stone curtain wall system residential prefabricated unit
aluminum plate and window-wall combination system high-adaptability curved unit curtain wall system new anti-lateral
15Annual Report 2024 of China Fangda Group Co. Ltd.
displacement groove embedding system and ultra-high performance low-energy aluminum alloy system doors and windows and
high-efficiency system louvers developed for overseas markets. These products better meet the domestic and international demand
for high-end curtain walls and the requirements for green low-carbon buildings.In addition the Company has also achieved technological innovation in the inspection and testing of building curtain walls
actively promoting the application of drone inspections thermal infrared detection and other technologies. These innovations
effectively improve inspection efficiency reduce the safety risks of high-altitude operations enhance the safety of building
facades and ensure public safety.Continuous R&D Investment: During the reporting period the Company's R&D investment amounted to
RMB171031400 accounting for 3.87% of its operating income. The Company has obtained 671 patent technologies for smart
curtain wall systems and new materials as well as 21 software copyrights. It participated in the drafting of 35 national/industry
technical specifications and standards. Notably the national standards Building Curtain Wall Thermal Cycling and Condensation
Detection Method GB/T 43496-2023 Aluminum Single Panel for Architectural Decoration GB/T 23443-2024 andMetal and
Metal Composite Ceiling Panels GB/T 23444-2024 were published during the reporting period. Six subsidiaries engaged in the
smart curtain wall system and new materials industry are recognized as national high-tech enterprises with five of them being
"specialized refined and innovative" enterprises. They have consecutively been recognized as National Intellectual Property
Advantage Enterprises National Quality Leaders "Specialized Refined and Innovative" Little Giants Guangdong Provincial
Engineering Technology Research Center Jiangxi Provincial Enterprise Technology Center Jiangxi Provincial Intelligent
Manufacturing Benchmark Enterprises Guangdong Provincial Innovative SMEs and holders of Enterprise Innovation Records.These accolades highlight the Company's leading position and comprehensive strength in curtain wall product design
manufacturing and installation technology.* Deepening focus on key domestic regions and achieving new highs in overseas orders
In the face of adverse impacts such as economic restructuring a slowdown in national fixed asset investment growth and
intensified industry competition the Company remains committed to a principle of controllable risk. It actively plans the market
layout for high-end curtain walls both domestically and internationally focusing on high-quality clients key regions and major
projects continuously advancing towards high-quality development goals. During the reporting period the Company deeply
penetrated the Guangdong-Hong Kong-Macao Greater Bay Area market winning bids for a series of influential large projects such
as the Shenzhen Super Headquarters Base—Shenzhen Bay Coastal Business Center Section 1 the Shenzhen ZTE Headquarters
Building and the JD Shenzhen Headquarters curtain wall project. Additionally the Company won the bid for the "First Village of
Shenzhen Urban Renewal" Shenzhen Bay Area Smart Plaza project with a height of 358 meters; the highest building in
Guangzhou Financial City East Area—the 248-meter Guangdong Construction Engineering Technology Innovation Building
project; and the Dongguan OPPO Binhaiwan High-Level Talent Housing project among others.While domestic business continues to develop steadily overseas orders have also achieved new breakthroughs with newly
signed overseas curtain wall system and material project orders increasing by 60.98% compared to the same period last year.Notably the curtain wall project for Melbourne Square Phase II in Australia with a height of 247 meters set a new record for the
Company's highest project in Australia. As of the end of the reporting period the Company's order reserve for the smart curtain
wall and new materials industry reached RMB5776069900 which is 1.62 times the 2024 operating income of the Company's
curtain wall system and materials industry laying a solid foundation for the Company's continued high-quality development.* Deepening globalization strategy and enhancing localized decision-making efficiency
During the reporting period the Company firmly pursued the goal of deepening its globalization strategy integrating high-
quality market resources across the group. While consolidating its strong presence in advantageous markets like Australia the
Company actively expanded into emerging markets in Southeast Asia and the Middle East. It has established branches in countries
and regions along the "Belt and Road" initiative including Singapore India Australia Bangladesh the UAE Saudi Arabia and
Hong Kong. The Company implements a dual-output model of "technology + service" and employs matrix management for its
overseas business enhancing localized decision-making efficiency. During the reporting period overseas revenue from the high-
16Annual Report 2024 of China Fangda Group Co. Ltd.
end smart curtain wall system and materials industry increased by 8.27% compared to the previous year.(II) Rail Transit Intelligent Platform Screen Door Equipment and System Industry
* Remarkable results of overseas strategy highlight industry leadership
Continuing to deepen overseas markets: The year 2024 marks the beginning of the new decade for the "Belt and Road"
initiative. As a pioneer and leader in the rail transit platform screen door industry the Company has become a practitioner and
beneficiary of the national "Belt and Road" initiative. Expanding the brand overseas has become an important way for the
Company to enhance market competitiveness and achieve high-quality development. For over a decade the Company has been
deeply engaged in countries and regions along the "Belt and Road" initiative. It has secured rail transit platform screen door
system projects in countries and regions such as Singapore Malaysia Hong Kong Taipei Thailand India Greece Colombia and
the Philippines. By establishing good relationships with overseas partners and relying on excellent products technology and
services the Company continues to "ride the waves" in the global market.Record high order reserve: During the reporting period 9 metro projects worldwide that use the Company's rail transit
platform screen door systems were successively opened for operation. Among them the Mumbai Metro Line 3 in India is the
Company's third operational project in the Indian market following the Noida Metro and Ahmedabad Metro projects. During the
reporting period the operating revenue of the Company's rail transit intelligent platform screen door equipment and system
industry was RMB612820600 an increase of 9.74% compared to the previous year. Domestic revenue accounted for 56.93%
while overseas revenue accounted for 43.07% further consolidating the mutually reinforcing development pattern of domestic and
international dual circulation. As of the end of the reporting period the order reserve for the Company's rail transit intelligent
platform screen door equipment and system industry reached RMB2511326000 an increase of 3.39% compared to the end of the
previous year. This is 4.10 times the operating revenue of the rail transit platform screen door equipment and system industry in
2024 setting a new historical high and laying a solid foundation for the continued release of subsequent performance. In the
context of weak global economic recovery and insufficient domestic effective demand the Company's rail transit intelligent
platform screen door equipment and system industry has maintained strong resilience demonstrating strong competitiveness and
overall strength in technology brand and market as well as significant advantages in new quality productivity.* Accelerating technological innovation and leading standardization
Leading the development of industry technical specifications: The Company consistently adheres to technology
innovation as its driving force and market demand as its guide committed to providing high-quality rail transit platform screen
door products and services to global customers. As a national intellectual property advantage enterprise the Company led the
preparation of the first domestic industry standard for platform screen door systems. It is currently spearheading the drafting of
China's first national standard for platform screen door products titled Urban Rail Transit Platform Screen Door Systems.Additionally the Company is participating in the drafting of Technical Guidelines for Smart Station Construction in Rail Transit
Technical Specifications for Intelligent Detection Systems of Foreign Objects in the Gap between Urban Rail Transit Platform
Screen Doors and Train Doors and the group standard High-Speed Railway Platform Door Systems consolidating its leading
position.AI+ driving innovation achievements transformation: In recent years the Company has continuously improved its
technological innovation system deeply engaged in tackling key core technologies vigorously developed "AI+" and actively
promoted the transformation and application of technological innovation achievements achieving a leap in productivity quality.During the reporting period the Company's independently developed pneumatic-driven screen door system intelligent operation
and maintenance system three-module full-height screen door structure products sliding door lateral press anti-pinch self-rescue
lock and other new technologies and products have been successfully applied in multiple projects. Fangda Zhiyuan has been listed
for six consecutive years among the "Top 100 Shenzhen Industry Leader Enterprises". The Company has developed a globally
leading high-speed rail platform screen door system with completely independent intellectual property rights utilizing artificial
intelligence and AI vision systems. This system can automatically recognize high-speed train models and train positioning
allowing arbitrary setting of platform door opening positions and door opening sizes to accommodate different models' various
17Annual Report 2024 of China Fangda Group Co. Ltd.
opening positions and size requirements. This innovation significantly enhances the safety protection level of high-speed and
intercity railway platforms improves train operation organization and transportation efficiency and enhances passenger service
quality. It has significant engineering implications and serves as an important demonstration for promoting rail transit construction
and leading the technological upgrade of the rail transit industry earning the "Shenzhen Enterprise Innovation Record" honor. This
product has obtained 36 patents and promises broad application scenarios and market space in the future.* Possessing full industry chain one-stop service capability maintenance business growing annually
The Company has a full industry chain one-stop service capability for rail transit platform screen door systems offering
services that include research and development design equipment manufacturing engineering services technical services and
maintenance and spare parts supply. This comprehensive service capability effectively reduces customers' construction operation
and management costs lowers the risk of compatibility issues in complex line systems and minimizes the impact of renovation
projects and maintenance on normal operations. As the operational mileage of urban rail transit continues to increase the demand
for operation and maintenance is gradually becoming prominent revealing the enormous potential of the rail transit aftermarket.Intelligence and specialization are set to become future development trends. The Company's independently developed platform
screen door intelligent operation and maintenance support system utilizes artificial intelligence (AI) big data and other
information technologies to effectively achieve real-time monitoring of rail transit system equipment status fault early warning
and intelligent maintenance decision-making. This reduces system operation and maintenance costs lowers equipment failure rates
improves maintenance efficiency and enhances the intelligence level of station operations. During the reporting period the
Company's maintenance revenue from the rail transit platform screen door industry was RMB70484800 accounting for 11.50%
of the rail transit platform screen door business revenue representing an increase of 11.76% compared to the same period last year.The good development opportunities for the Company's professional technical maintenance services business are gradually
emerging.
(3) New energy industry
The Company's new energy industry mainly consists of Building Integrated Photovoltaics (BIPV) and distributed solar
photovoltaic power stations. Against the backdrop of the national dual carbon strategy and green development the Company has
consistently adhered to the concepts of low carbon energy saving green and environmental protection. It is one of the early
developers and applicators of BIPV and photovoltaic power generation system design manufacturing integration and operation in
China possessing mature technical experience and having completed some of the earliest BIPV projects in the country. Currently
the Company has won the bid for the Egret Lake Center curtain wall project one of the seven key areas in Longhua District
Shenzhen. Leveraging its advantages in curtain wall business the project employs BIPV technology with a photovoltaic curtain
wall area of approximately 1000 square meters. Once completed it is expected to generate about 62000kWh of electricity
annually save approximately 17.8 tons of standard coal per year and reduce carbon dioxide emissions by 43.4 tons contributing
to the acceleration of achieving zero carbon targets in the construction sector.The Company has completed several distributed solar photovoltaic power stations such as the Pingxiang distributed
photovoltaic power station in Jiangxi the Nanchang Jiangxi Isuzu Motors parking lot photovoltaic power station and the
Dongguan Songshan Lake base photovoltaic power station in Guangdong which have achieved intelligent operation and
maintenance to ensure long-term stable returns.
(4) Commercial management and service industry
The Company's commercial development management and property service projects are primarily located in Shenzhen and
Nanchang. Shenzhen as the most dynamic modern metropolis in China continues to attract various enterprises with its unique
advantages amid the deep interconnectivity of the Guangdong-Hong Kong-Macao Greater Bay Area. Through differentiated
positioning and a digital investment promotion system the Company has maintained a higher-than-industry average clearance rate
and occupancy rate. By the end of the reporting period the sales clearance rate of the Shenzhen Fangda City project was 98.84%
with a self-owned property occupancy rate of 83.69% and the Fangda Technology Building occupancy rate was 81.54%. The
Fangda Center project in Nanchang is located in the Honggutan New District a core area of Nanchang's "One River Two Banks
18Annual Report 2024 of China Fangda Group Co. Ltd.
Twin Cities Embracing the River" strategy also known as Nanchang's "Urban Living Room" with significant locational
advantages and positive market expectations. At the end of the reporting period the sale rate of Nanchang Fangda Center project
was 43.02% and the occupancy rate of self-owned properties was 91.35%. In the future the Company will continue to improve its
operational management model consistently contributing to the Company's profits in a stable and healthy manner.The Company actively embraces AI technology vigorously promoting the digital construction of property services to
achieve intelligent management. It has established smart systems including the Fangda Property Smart Park applet enterprise
WeChat online customer service online work orders and intelligent lighting control. By analyzing and mining massive data the
Company gains deep insights into customer needs and habits providing personalized services to enhance smart property
management levels and reduce management costs.The planned project initiation work for the Company's Henggang Dakang urban renewal project in Shenzhen is ongoing.II. Core Competitiveness Analysis
(I) Smart curtain wall system and material
1. Technological innovation advantages
The Company adheres to technology leadership and innovation-driven strategies developing new quality productivity
tailored to local conditions and actively utilizing digital and green technologies through AI technology to empower the traditional
curtain wall industry. The Company has obtained 671 patents for smart curtain wall systems and new materials as well as 21
software copyrights. It has participated in the drafting of 35 national or industry standards including the Energy Conservation
Design Standards for Public Buildings. It was the first in the industry nationwide to establish research and development
institutions such as an enterprise post-doctoral workstation a provincial engineering technology research center and a research
design institute with independent innovation capabilities and technical levels reaching the advanced level of the domestic industry.Six subsidiaries engaged in the smart curtain wall systems and materials industry are national high-tech enterprises with five of
them recognized as "specialized refined and innovative" enterprises providing a strong platform support for the Company's high-
quality innovation development. The Company has been consecutively awarded honors such as the National Intellectual Property
Advantage Enterprise National Quality Leader Enterprise "Specialized Refined and Innovative" Little Giant Guangdong
Provincial Engineering Technology Research Center Jiangxi Provincial Enterprise Technology Center Jiangxi Provincial
Intelligent Manufacturing Benchmark Enterprise and Guangdong Provincial Innovative Small and Medium Enterprises. The
Company's independent and continuous innovation has established its leading technological level and product delivery capabilities.During the reporting period as a leading enterprise in the curtain wall industry the Company hosted a high-quality curtain
wall engineering observation conference attracting over 200 industry peers to observe the Tencent Shenzhen Headquarters Cloud
Building curtain wall project constructed by the Company showcasing its strength. The Company published nine papers in
professional journals providing in-depth analysis of the design essence of several key projects. The R&D achievements from
industry-university-research collaboration were successfully applied to projects such as the "Shenzhen China Resources Snow
Headquarters Building" fully demonstrating the Company's benchmark role in the curtain wall industry technology field.
2. Brand value advantages
The Company has been deeply involved in the curtain wall field for over thirty years consistently adhering to a quality-first
approach. With long-term excellence in product advantages and service quality it has gained high recognition from the industry
and numerous professionals earning a good reputation as one of the preferred brands in the domestic high-end curtain wall system
materials industry. The Company has received over 200 awards at the national and provincial levels including the National
Quality Award the Luban Award (National Quality Engineering) the Zhan Tianyou Award and the China Building Decoration
Award. Globally the Company has created over 1000 landmark projects establishing itself as a leading brand in the high-end
curtain wall sector. The Fangda trademark has been recognized as a "China Well-known Trademark" and has also been awarded
the titles of "International Reputation Brand" and "Shenzhen Old Brand."
19Annual Report 2024 of China Fangda Group Co. Ltd.
During the reporting period the high-end curtain wall projects undertaken by the Company Shenzhen University Lihu
Campus and Shenzhen Zhongzhou Coastal Business Center both won the China Building Engineering Decoration Award. The
Tencent Shenzhen Headquarters Cloud Building Guangzhou Nansha International Financial Forum (IFF) Permanent Venue and
Shenzhen Hankin Center curtain wall projects were respectively awarded the "Era Icon" "Foresight" and "Innovation" honors at
the 2024 Alpha Architecture Conference. The Hubei Broadcasting and Television Media Building project won the "2023-2024 My
Favorite Curtain Wall Project" the Kunming Huancheng Business Center curtain wall project phase one won the Yunnan Province
"Excellent Engineering Second Prize" and the Guangzhou Nansha International Financial Forum (IFF) Permanent Venue curtain
wall project won the "Guangzhou City Excellent Engineering Award".During the reporting period the Company successfully completed 38 curtain wall projects globally covering landmark
buildings in multiple fields such as: Kingdee Cloud Center UBTECH Robotics Building CCCC Group Southern Headquarters
Building ByteDance Shenzhen Houhai Center Building Shenzhen China Resources Snow Headquarters Building Haitian Group
Headquarters Building Australia Seafarers and Australia PFMCC Hospital. The Company's products and services have received
widespread praise from clients within the industry earning honors such as "Excellent Supplier" and "Excellent Subcontractor"
multiple times.
3. Industrial layout advantages
After years of development the Company's intelligent curtain wall systems and materials industry has established a
nationwide industrial layout with Shenzhen as its headquarters and production bases in Shanghai Chengdu Dongguan Ganzhou
and other locations. This setup provides customers with integrated solutions encompassing research and development design
production project management and construction as well as maintenance services creating a complete industrial chain in the field
of curtain wall systems and materials. Among these the Fangda (Ganzhou) Low-Carbon Intelligent Manufacturing Base project
commenced operations during the reporting period. This base is a "5G+ Smart Factory" integrating 5G digitalization the Internet
of Things and intelligence. It leads the industry in system innovation product development and manufacturing and has now
become a "Green Island" factory within the smart manufacturing and AI system. The Company's well-established production base
layout and complete industrial chain enable it to optimize production costs enhance efficiency and quickly respond to market
demand changes providing essential support for increasing market share and comprehensive competitiveness.
4. Talent
The Company implements an innovation-driven development strategy accelerating the cultivation of innovative talent
through multiple channels actively introducing and nurturing various professional technical and management talents and is
committed to building an innovative and efficient management and operational team. After years of development the Company
boasts an experienced internationally-minded senior management team and mid-level managers with solid expertise and strong
execution capabilities. It has a comprehensive talent development system and talent reserve with smooth career development
paths. Additionally the Company has a well-established incentive and evaluation system for the transformation of technological
achievements fully stimulating the innovative vitality of R&D personnel. This supports and guides the Company towards quality
improvement efficiency enhancement and sustainable healthy development through technological innovation steadfastly
pursuing independent innovation to truly become a force driving high-quality corporate development. During the reporting period
the Company recruited 97 new graduates laying a solid foundation for its talent reserve.(I) Rail Transit Platform Screen Door Equipment and System Industry
1. Technical R&D advantage
The Company adheres to independent innovation and was the first in China to develop a rail transit platform screen door
system with independent intellectual property rights breaking the monopoly of foreign companies in China's rail transit platform
screen door field. Through years of continuous engineering practice and technological innovation the Company has accumulated
profound technical expertise giving it a technological R&D advantage. The Company's technological R&D system is well-
established. The platform screen door system R&D center of Fangda Zhiyuan has been awarded the Guangdong Engineering
Technology Center by the Guangdong Science and Technology Department. The Company has a comprehensive experienced and
20Annual Report 2024 of China Fangda Group Co. Ltd.
highly skilled international technical talent team. The R&D team has strong technological innovation capabilities and its research
achievements have successively received the Guangdong Science and Technology Award and the Shenzhen Science and
Technology Progress Award among others. The Company's urban rail transit platform safety doors have been recognized by the
Ministry of Industry and Information Technology as a "Single Champion Product in Manufacturing." Fangda Zhiyuan has been
selected as a "National Intellectual Property Advantage Enterprise" and a Shenzhen "Specialized Refined Special and New"
Enterprise. It was the main editor of China's first industry standard for "Urban Rail Transit Platform Screen Doors" and is
currently leading the drafting of China's first national standard for "Urban Rail Transit Platform Screen Door Systems." The R&D
project for the high-speed rail station platform door system has been recognized as a "Shenzhen Enterprise Innovation Record"
highlighting Fangda's continuous comprehensive leading strength and industry benchmark position in the field of urban rail transit
equipment.
2. Industry chain advantage
As a pioneer in China's metro platform screen door industry the Company possesses the capability to provide one-stop
services across the entire industry chain including R&D design equipment manufacturing engineering services technical
services and maintenance and spare parts supply. A complete industrial chain helps the Company to realize resource sharing at all
stages and meet the market demand for specialized products and services thereby effectively reducing the Company's production
and management costs and improving profitability and competitive advantages.With the continuous increase in urban rail transit operating mileage in China the nation has become a global leader with the
longest operating mileage and a highly dense line network. Many metro platform screen door systems are entering the
maintenance period prompting the Company to actively expand its metro maintenance business. The intelligent maintenance
management system developed by the Company can count and analyze the operation status of site equipment in real time
remotely guide the on-site technical service team and provide professional technical support to customers in a timely and efficient
manner. The Company's operation and maintenance management service team is now spread across more than 30 cities worldwide.As service capabilities improve and customer recognition increases the revenue contribution from the Company's technical
services is expected to continue to grow.
3. Brand and market position advantages
The Company was an early entrant into the platform screen door system field. With outstanding advantages in product safety
reliability availability and sustainability it has received high praise and recognition from numerous customers establishing
Fangda's brand advantage and market position. During the reporting period Fangda Zhiyuan was rated as one of the "Top 100
Industry Leaders in Shenzhen in 2024" and featured on the "Innovation Power List of Enterprises in the Guangdong-Hong Kong-
Macao Greater Bay Area". It was also recognized by several metro companies with titles such as "Excellent Equipment Supplier"
"Outstanding Contribution Unit" and "Excellent Maintenance Unit". In the rail transit platform screen door system field the
Company acts as the sole strategic partner of internationally influential companies like Alstom Siemens and LG participating in
the construction of global urban rail transit screen door system projects.During the reporting period leveraging its strong brand image and market reputation the Company successively won bids
and signed orders for platform screen door system projects such as Hefei Metro Line 8 Shenyang Metro Line 3 Phase 1 Tianjin
Metro Line 8 Phase 1 and Wuhan Metro Xin Gang Line Phase 1. Additionally it secured technical maintenance service orders for
rail transit screen doors for projects like Shenzhen Metro Lines 2 7 9 Phase 1 11 Phase 1 and 20 Nanning Metro Line 5 Wuhan
Metro Line 6 Wuhan-Xiaogan Intercity and Wuhan-Xiantao Intercity. Moreover the Company has been a pioneer in entering the
international market securing several major rail transit screen door system projects in countries and regions such as Singapore
Malaysia Hong Kong SAR Taipei Thailand India Greece Colombia and the Philippines. The Company's capabilities in
product design delivery timeliness and product quality stability have been fully recognized by overseas clients. The Company's
strong brand image and market reputation contribute to its ongoing competitiveness enhancement laying a solid foundation for its
healthy development.
4. Organizational structure advantage
21Annual Report 2024 of China Fangda Group Co. Ltd.
The Company offers customized urban rail transit platform screen door systems which involve various management stages
from order acquisition to final project delivery including research and development design manufacturing testing installation
and maintenance. These services are characterized by high contract work refinement and long performance cycles. To provide
more comprehensive services the Company has established an organizational structure that meets customer needs equipped with
professionals in each service stage.The Company possesses outstanding professional capabilities and a well-configured research and development team capable
of providing technical solutions for customers' special requirements. In terms of product design the Company's technical team has
extensive experience. In product manufacturing the Company owns a large-scale production factory and has a complete and
reliable supply chain. For product testing the Company has well-equipped and professional testing equipment and methods. In
terms of installation the Company holds the first-level qualification of national construction mechanical and electrical installation
engineering enabling it to independently undertake installation work as stipulated by contracts. In terms of maintenance the
Company has an operations and maintenance center with professional maintenance teams. Maintenance centers are established at
customer locations and project sites allowing for faster and more considerate services.
(3) New energy industry
The Company's new energy industry primarily focuses on the application of new energy and energy-saving technologies
such as solar photovoltaic power plants and building-integrated photovoltaics (BIPV). Its business scope spans across the
construction and photovoltaic power generation industries. The Company has been actively developing solar photovoltaic curtain
wall system technology for over twenty years. It is one of the domestic enterprises that started early in the design manufacturing
and integration of solar photovoltaic building-integrated (BIPV) systems.Distributed solar power PV power generation is closely related to the Company's curtain wall business. Part of the distributed
solar power PV systems are closely related to construction. Moreover in terms of product system integration the Company has
over twenty years of experience in electromechanical product integration and project management. It possesses professional
qualifications in mechanical and electrical installation among others.
(4) Commercial management and service industry
Through years of operational service and the creation of a differentiated brand the Company has continuously enhanced the
value and effectiveness of the Fangda brand steadily advancing in intense market competition. Over the years the Company has
established a professional capable and enterprising management team full of youthful vigor accumulating rich experience to
ensure the efficiency and execution of company management.III. Industry Situation During the Reporting Period
(I) Smart curtain wall system and material
1. Industry development
In 2024 China's economy operated smoothly overall progressing steadily with solid advancements in high-quality
development. The company's intelligent curtain wall business has grown alongside urban development making it one of the
important industries in national economic construction and closely connected to the macroeconomic development level. According
to data from the National Bureau of Statistics in 2024 the gross domestic product (GDP) was RMB134908.35 billion an increase
of 5.0% year-on-year with the added value of the construction industry reaching RMB32650.1 billion up by 3.9% year-on-year.The construction industry remains a crucial pillar industry of the national economy closely linked to the overall economic
development of the country and holds significant importance in stabilizing the economic landscape.The Central Economic Work Conference and the government work report pointed out that there is still considerable room for
development and improvement in China's urbanization. With the continuous advancement of new urbanization the integration of
urban agglomerations such as Beijing-Tianjin-Hebei the Yangtze River Delta the Guangdong-Hong Kong-Macao Greater Bay
Area and Chengdu-Chongqing region is driving further demand for infrastructure like public service facilities providing more
22Annual Report 2024 of China Fangda Group Co. Ltd.
market opportunities for leading companies in the industry. Meanwhile the application of digital technologies such as artificial
intelligence (AI) and big data and the rapid advancement of new building industrialization and intelligent curtain wall technologies
will accelerate the transformation and innovative development of the building curtain wall industry.In May 2024 the State Council issued the 2024-2025 Energy Conservation and Carbon Reduction Action Plan proposing to
"vigorously develop prefabricated buildings actively promote intelligent construction and accelerate the integration of building
photovoltaics". The national implementation of technology innovation to drive industrial innovation and a series of measures for
energy conservation and carbon reduction will make green buildings a development trend in the industry further accelerating the
optimization and upgrading of the curtain wall industry chain.
2. Business Status
(1) Main products and purposes
The Company's intelligent curtain wall systems are widely used in a variety of buildings such as high-end office buildings
corporate headquarters urban complexes hotels large venues institutional or government office buildings urban public buildings
and high-end residential properties. These systems effectively enhance the visual aesthetics of buildings improve energy
efficiency and environmental sustainability and better meet the needs of people's work and life. Intelligent curtain walls combine
modern architectural technology with intelligent system solutions developed on the basis of smart buildings. They integrate
appropriate control of building supporting technologies (such as heating thermal lighting and electrical systems) and reduce
energy consumption through digital and artificial intelligence technologies. The Company's intelligent curtain wall products have
repeatedly won the highest award in China's construction field the Luban Prize (National Quality Project Award) placing them
among the top competitors globally and establishing the brand as a renowned name in the global curtain wall industry. This
reflects the high-quality characteristics of new productive forces.The Company fully utilizes its technical service and talent advantages to conduct inspections and checks on building
exterior maintenance systems implement building energy-saving renovations provide waterproofing and anti-corrosion services
as well as maintenance and related technical services. The Company has provided these services to buildings with a total area
exceeding 8 million square meters demonstrating strong competitiveness within the industry.New materials focusing on low-carbon environmental protection intelligence and sustainability are one of the Company's
key development areas. The Company possesses strong R&D capabilities and advanced production and manufacturing bases for
PVDF aluminum panels and aluminum honeycomb panels. These products have been widely applied in many major projects
across more than 160 cities worldwide.
(2) Main business modes specific risks and changes;
The Company's main operating model is primarily an integrated "design-production-construction" approach which remained
unchanged during the reporting period. The contracts for the design installation and construction of the Company's intelligent
curtain walls are primarily obtained through bidding processes (open bidding and invitational bidding). Based on the requirements
of each order the Company provides a comprehensive solution that includes design raw material procurement production and
processing installation and construction as well as after-sales service. This approach is characterized by non-standardization and
customization. The gross profit margin levels of different orders are influenced by multiple factors including the owner's budget
investment bidding competition conditions product materials complexity of building structures and constructions project
timelines on-site construction and cost management resulting in certain variations. In addition due to the long period of order
implementation it is greatly affected by national industrial policies raw material prices and fluctuations in the labor market.Different orders have different technical requirements. It is impossible to simply copy the existing experience and the
requirements for technology and management are relatively high. The engineering payment settlement process for orders is
divided into stages such as engineering advance payment engineering progress payment completion acceptance completion
settlement payment and quality guarantee deposit. The specific settlement situation depends on the completion progress and
contract agreement.
23Annual Report 2024 of China Fangda Group Co. Ltd.
(3) Market competition pattern in which the Company is located and the Company's
market position
The future development direction of the architectural curtain wall industry includes transformation and upgrading green
development and intelligent construction. This involves not only innovation in curtain wall construction technology but also
reshaping the industry from aspects such as business philosophy market form product form construction methods and industry
management. Leading enterprises in the industry which possess advantages in talent technology brand and capital and have the
capability to undertake complex innovative and comprehensive projects are increasingly highlighting their competitive edge in
the market. In the future technological innovations dominated by artificial intelligence (AI) modular assembly and Building
Information Modeling (BIM) will become important driving forces for the industry's development.The Company has been deeply involved in the curtain wall industry for more than 30 years and has a profound technical
accumulation. Fangda Jianke Co. Ltd. a wholly-owned subsidiary of the Company has the highest qualifications for curtain wall
design and construction enterprises in China - the first-class qualification for professional contracting of architectural curtain wall
engineering and the first-class qualification for architectural curtain wall engineering design. It is the leading enterprise in China's
curtain wall industry. Fangda Jianke has won the highest awards in the national construction industry including "Luban Award"
"National Quality Engineering Award" "Zhan Tianyou Civil Engineering Award" "China Building Decoration Award" and over
200 provincial and ministerial awards. Fangda Jianke has participated in the preparation of more than 35 national or industrial
standards such as the Design Standard for Energy Efficiency of Public Buildings and has created 18 new records for Chinese
enterprises. It is an intellectual property demonstration enterprise in Guangdong Province. It is the first one in the same industry in
the country to set up enterprise post-doctoral workstations provincial engineering technology research centers research and
design institutes and other research and development institutions with independent innovation capability and technology level
reaching the advanced level in the same industry in the country with the innovative characteristics of new quality productivity.Good social credibility high quality service quality successfully established the Company's brand awareness and reputation fully
demonstrated the strength of the Company as the industry leader. The Company will closely follow national strategic directions
seizing important opportunities such as the dual circulation strategy expanding domestic demand unifying the large market
technological innovation and green development. By consolidating and enhancing its leading position in its core business sectors
the Company aims to continuously create new value and new momentum thereby achieving its goal of sustained scale growth.
(4) Industry qualification types and validity period
The Company has a Class A qualification for building curtain wall engineering contracting and class A qualification for
building curtain wall engineering design. It is the highest level for curtain wall design and construction companies in China.During the reporting period the Company's relevant qualifications have not changed significantly and the validity period has not
expired. Details of the meetings are disclosed as follows:
No. Qualification Valid period
1 Construction curtain wall designing class A By February 14 2030
2 Construction curtain wall contracting class A Until December 04 2028
3 Professional contracting for secondary level buildingmechanical and electrical installation engineering By December 11 2028
4 Construction decoration contracting class B By December 11 2028
5 Steel structure engineering contracting class B By December 11 2028
6 Professional contracting for secondary level urban androadway lighting engineering By December 11 2028
7 Design and construction of metal roof (wall) surface ofbuilding By December 18 2026
(5) Quality control system implementation standards control measures and overall
evaluation
24Annual Report 2024 of China Fangda Group Co. Ltd.
Quality control system: As a leading enterprise of high-end curtain wall the Company pays attention to quality management.It is the first in the industry to pass ISO9001 ISO14001 OHSAS18001 international and domestic dual certification GB/T29490
intellectual property management system certification and is the first to establish sales design supply production one-stop
quality control system such as construction after-sales customer service etc. implement strict quality control and supervision for
each link and create a strong quality management system.Implementation of the standard: In the process of building curtain wall business the Company strictly complies with
GB/T21086-2007 "Building Curtain Wall" JG/T231-2007 "Building Glass Lighting Roof" and other national and industrial
standards.Control measures: The Company has established complete and effective quality control measures and quality management
institutions introduced digital information management and digitized the Company's various businesses raw materials factory
workshops and construction site operating procedures through computer information integration systems. Through cloud terminal
technology information is quickly transmitted and shared for collaborative application. Strictly implement various quality
management and control measures to provide customers with high-quality products and services.Overall evaluation: The Company's quality control system and executive standards meet the relevant requirements of the
current relevant national norms and standards maintain good operation and provide customers with stable and reliable products
and services.
(6) Major project quality problem during the reporting period
None.
(7) Operation of the safety production system
The Company consistently adheres to the safety work policy of "safety first prevention foremost comprehensive
management" firmly establishing the concept of safe development. By establishing a safety assurance system signing the Safety
Production Responsibility Agreement and conducting Safety Production Month activities the Company fulfills the main
responsibility for safety production strengthens the foundation enhances on-site supervision and management improves the
ability to identify risks and hazards and enhances employees' emergency response capabilities thereby further improving the
operation level of the safety system. During the reporting period the Company's safety management system operated well with no
major safety incidents occurring.(II) Rail Transit Intelligent Platform Screen Door Equipment and System Industry
1. Industry development
The intelligent platform screen door system for rail transit is an indispensable component of the urban rail transit industry
chain closely related to the national economic development level and urban rail transit development and construction planning.According to the Urban Rail Transit Operation Data Bulletin released by the Ministry of Transport by the end of 2024 a total of
54 cities in China had opened 325 urban rail transit lines with an operating mileage of 10945.6 kilometers and 6324 stations. In
2024 China added 18 new urban rail transit lines increasing the operating mileage by 748 kilometers. This not only marks the
increasingly complete and efficient operation of China's urban rail transit network but also represents a deep practice and
continuous promotion of green and convenient travel methods. In 2024 a total of 40.85 million train trips were made with a
passenger volume of 32.24 billion an increase of 2.8 billion from 2023 representing a year-on-year growth of 9.5%. This growth
reflects the increasingly prominent backbone role of rail transit in the urban public transportation system as the urban rail transit
network continues to densify and optimize attracting more citizens to choose rail transit for travel. It effectively alleviates road
traffic pressure and plays an important role in easing urban congestion.In July 2024 the State Council issued the Five-Year Action Plan for Deeply Implementing the People-Centered New-Type
Urbanization Strategy which proposes implementing actions to cultivate modern metropolitan areas accelerating the
transformation of mega and super-large city development methods and promoting the development of surrounding cities and
counties with central cities as the driving force. It aims to accelerate the cultivation of a number of modern metropolitan areas
25Annual Report 2024 of China Fangda Group Co. Ltd.
strengthen the interconnection of metropolitan area transportation infrastructure and steadily advance the construction of
metropolitan area rail transit networks bringing new opportunities for the development of urban rail transit.With the continuous increase in urban rail transit operating mileage China's rail transit platform screen door system
maintenance market is in a rapid development stage with intelligence and specialization being the main trends. In the future with
technological progress and increasing market demand this field will usher in greater development opportunities while also
needing to address the challenges brought by intense market competition and technological updates.As countries and regions along the Belt and Road increase investment in urban rail transit construction Chinese high-end
equipment manufacturing enterprises are expected to play a greater role in the international market. As a leader and promoter in
the construction and operation and maintenance of rail transit platform screen door systems the Company will continue to be
guided by national strategies and relevant industrial policies adapt to industry development trends and market demands increase
efforts in technological innovation continuously improve its core competitiveness focus on developing high-tech value-added
products and further increase the Company's market share in rail transit platform screen door systems.
2. Business Status
(1) Main products and purposes
The Company's main products are smart platform screen door systems applied to urban rail transit and also provide
operation and maintenance services for the above products. The platform screen door system of urban rail transit is installed at the
edge of the platform of urban rail transit station to isolate the running track area from the waiting area of the platform. It is
equipped with a continuous movable door body barrier corresponding to the train door which can be opened and closed by multi-
level control including the full-height closed screen door system the full-height non-closed screen door system and the half-
height screen door system. In addition the Company's independently developed platform safety door system suitable for the
complex environment of high-speed railways can intelligently match the platform safety doors with the train doors based on the
different models of incoming high-speed trains. This innovation will open up new application scenarios and market spaces in the
future.The platform screen door system isolates the track from the platform waiting area effectively ensuring the safety of
passengers preventing them from falling off the track and also preventing unauthorized entry into the tunnel; In case of fire or
other fault modes it can be linked and controlled with relevant systems to achieve rapid smoke exhaust and passenger evacuation
and escape functions. At the same time the platform screen door system can effectively reduce dust noise and tunnel wind
pressure entering the platform from the tunnel providing passengers with a quiet comfortable and safe traveling environment. In
addition the platform screen door system also has a passenger flow counting function which can guide passengers to low-density
carriages during peak passenger hours. The platform screen door system can also serve as a platform for passenger consultation
systems achieving multimedia interaction functions such as information broadcasting consultation dissemination and commercial
promotion for passengers.
(2) Main business model
The operating entity of the Company's rail transit intelligent platform screen door equipment industry is its subsidiary Fangda
Zhiyuan. Fangda Zhiyuan is a supplier and service provider of rail transit intelligent platform screen door systems integrating
research and development design manufacturing installation and technical services and possessing a complete industry chain. A
mature and complete management system for research and development procurement production sales and O&M has been
established. In terms of research and development the Company has formed a research and development project initiation
mechanism that combines independent basic research with project needs; In terms of procurement suppliers are mainly selected
and purchased by the project and a special procurement team is set up to carry out the procurement work; In terms of production
manage the Company's production activities according to contract requirements and customer's production instructions; In terms of
sales the Company's customers are metro companies around the world and electromechanical general contracting units in the rail
transit industry all of which are direct sales and there is no distribution; in terms of operation and maintenance the Company
26Annual Report 2024 of China Fangda Group Co. Ltd.
already has an intelligent operation and maintenance guarantee system for platform screen doors which can monitor the operation
data in real time and quickly diagnose and eliminate faults.
(3) Market competition pattern in which the Company is located and the Company's market position
As a world-class supplier of rail transit screen door systems the Company is the most trusted expert in rail transit screen door
systems for its clients. The Company's rail transit intelligent screen door systems have a coverage rate of over 60% in cities with
operational metro systems in China and cover more than 120 lines in over 40 cities worldwide continuing to lead strongly. The
Company actively responds to the national "Belt and Road" initiative experiencing a golden period of development in its overseas
screen door business securing major rail transit screen door system projects in countries and regions along the "Belt and Road"
including Singapore Malaysia Hong Kong (China) Taipei (China) Thailand India Greece Colombia and the Philippines. With
the continuous expansion and deepening of its overseas business the Company is poised to occupy a more significant position in
the global rail transit intelligent screen door sector.The Company has been dedicated to the rail transit platform screen door field for over 20 years successfully developing a rail
transit intelligent screen door system with independent intellectual property rights and maintaining a leading technological
advantage. The Company boasts a comprehensive team of compound professionals skilled in R&D design manufacturing
installation and technical services. It led the drafting of the first industry standard for rail transit platform screen doors Urban
Rail Transit Platform Screen Doors (CJ/T236-2022) and participated in the drafting of the group standard Acceptance
Specification for Urban Rail Transit Fully Automatic Operation Systems (T/URTA0009-2022). During the reporting period the
Company is leading the drafting of the first national standard for the industry Urban Rail Transit Platform Screen Door Systems
and is participating in the compilation of the Technical Guidelines for Intelligent Station Construction of Rail Transit Technical
Specification for Intelligent Detection System for Foreign Objects in the Gap between Urban Rail Transit Platform Screen Doors
and Train Doors and High-Speed Railway Platform Door Systems fully demonstrating the Company's profound technical
foundation and leading position. Additionally the Company's urban rail transit platform safety doors have been recognized by the
Ministry of Industry and Information Technology as a "Manufacturing Single Champion Product". Fangda Zhiyuan has been
awarded multiple honors and qualifications including being recognized as a National Intellectual Property Advantage Enterprise
receiving the Guangdong Science and Technology Award National Key New Products National Torch Plan Industrialization
Demonstration Project Guangdong Intelligent Rail Transit Platform Door Engineering Technology Research Center Shenzhen
Science and Technology Progress Award and the title of Shenzhen "Specialized Refined and New" Enterprise. It was also the
first to pass the International Railway Industry Standard (IRIS) management system and RAMS certification. The company holds
domestic and international patents and computer software copyrights forming a core technology group and intellectual property
system with independent intellectual property rights. During the reporting period Fangda Zhiyuan also received the EcoVadis
Sustainability Rating "Silver" certification ranking it in the top 15% of rated companies globally which fully acknowledges the
Company's continuous efforts in environmental protection labor and human rights business ethics and sustainable procurement.
(3) New energy industry
With the advancement of "carbon neutrality" and green building policies Building Integrated Photovoltaics (BIPV) has
become the primary development direction in the curtain wall industry. Policies such as the General Specification for Building
Energy Efficiency and Renewable Energy Utilization issued by the Ministry of Housing and Urban-Rural Development provide
legal assurance for the promotion of BIPV and create incremental market space for the application of photovoltaic systems in new
buildings. Moreover with the reduction in photovoltaic module costs and technological advancements the penetration rate of
BIPV is expected to further increase bringing new growth opportunities to the industry.
(4) Commercial management and service industry
1. Industry development
In 2024 China's real estate market continues to exhibit an overall adjustment trend. With the Central Political Bureau
meeting explicitly proposing to "promote the stabilization and recovery of the real estate market" there have been more active
changes in the real estate market under the influence of a combination of policies gradually boosting market confidence. Real
27Annual Report 2024 of China Fangda Group Co. Ltd.
estate is a pillar industry of the national economy and the restoration of the real estate industry chain is one of the keys to
expanding domestic demand. It is expected that the policy space to support the stabilization and recovery of real estate will further
open up and the real estate market will gradually return to stability maintaining a healthy and stable development trend in the
medium to long term.
2. The Company's main business model business project format market position and competitive advantage main
risks and countermeasures
The Company's commercial development projects mainly adopt a self-development model with partial sales and partial
retention. Currently the products developed by the Company primarily include office commercial and apartment spaces. Through
years of operational service the Company has established a professional and efficient team efficient management processes and
an information system capable of providing high-quality management and services. The Company's specialization capabilities
brand awareness occupancy rate and income levels continue to improve.The Company has occupied a certain market position through the brand advantage of commercial projects differentiated
positioning and regional advantages. However it still faces multiple risks in the future including fluctuations in housing prices
policy regulation and market competition. The Company will continuously optimize brand building and marketing promotion
through refined management flexible strategy adjustments and seizing policy benefits to reduce operational and management
risks and maintain stable development.
3. New land reserve projects
Equity
Total land
Parcel or considerati
Land Land area Building Obtaining Interests price (ten
project Purpose on (ten
location (m2) area (m2) method percentage thousand
name thousand
yuan)
yuan)
No
4. Total land reserve
2 Total building area (10000 Remaining building areaProject/region name Floor area (10000 m )
m2) (10000 m2)
No
5. Main production development status
Accu
Estim
mulat
Total ated
Planni Area ed
Devel area total
Intere ng compl total
Projec Land Starti opme Comp Land compl invest
City/r Projec sts constr eted invest
t locati ng nt letion area eted ment
egion t form perce uction in this ment
name on time progre rate (m2) in this (in
ntage area phase (in
ss 2 2 phase RMB(m ) (m ) 2 RMB(m ) 1000
1000
0)
0)
Shenz
Office
hen No.2
Fangd comm May
Nansh Longz 100.0 100.0 3539 2124 2177 2585 2836
a th ercial 1 100% -an hu 4 0% 0% 7.60 00.00 63.69 00 00
Town compl 2014
Distri Road
ex
ct
Hong No.15 Office
Fangd
gutan 16 comm May
a 100.0 100.0 1660 6643 6700 6699
New Ganji ercial 1 100% - 6537
Cente 0% 0% 8.55 2.61 0 2.35
Distri ang compl 2018 6.94
r
ct North ex
28Annual Report 2024 of China Fangda Group Co. Ltd.
Nanch Avenu
ang e
Fangd
a
Cente
r
6. Main project sales
Curren Settle
t Settle ment
Curren Cumul
Cumul period ment amoun
Interes t ative
Land Sellabl ative sales area in t in
City/re Project Project ts Buildi period settlem
locatio e area sales amoun the this
gion name form percen ng area 2 sales entn (m ) area t current period
tage area area
(m2) 2 (RMB 2 period (RMB(m ) (m )
10000 (m2) 10000
))
Shenz
Office
hen No.2
Fangd comm
Nansh Longz 100.00 21776 93086 92002 1775. 92002 1775.a th ercial 365.21 365.21an hu 4 % 3.69 .25 .95 84 .95 84
Town compl
Distric Road
ex
t
No.15
16
Hongg
Ganjia
utan Office
ng
New Fangd comm
North 100.00 65376 25996 11183 11183
Distric a ercial 879.70 891.58 879.70 891.58
Avenu % .94 .84 .86 .86
t Center compl
e
Nanch ex
Fangd
ang
a
Center
7. Main project lease
Interests Leasable area Cumulative leased Average
Project name Land location Project form
percentage (m2) area (m2) lease ratio
Shenzhen
Shenzhen Fangda Commercial and
Nanshan 100.00% 92470.58 77392.42 83.69%
Town office building
District
Shenzhen
Shenzhen Fangda
Nanshan Office building 100.00% 20464.75 16687.10 81.54%
Building
District
Jiangxi Nanchang Nanchang
Plant and office
Science and Jiangxi 100.00% 85472.88 17070.57 19.97%
building
Technology Park Province
Nanchang
Jiangxi Nanchang Commercial and
Jiangxi 100.00% 38165.36 34864.67 91.35%
Fangda Center office building
Province
8. First-level development of land
□Applicable□ Inapplicable
9. Financing channel
Financing Ending
Financing cost Term structure (monetary unit: RMB10000)
financing range / averagesource Within 1
balance (in financing cost 1-2 years 2-3 years Over 3 yearsyear
29Annual Report 2024 of China Fangda Group Co. Ltd.
RMB10000)
Annual interest
Bank loan 66000.00 10000.00 39000.00 17000.00 0.00
rate of 2.5%-5%
Annual interest
Total 66000.00 10000.00 39000.00 17000.00 0.00
rate of 2.5%-5%
10. Development strategy and operation plan in next year
In 2025 the main tasks for the Company's commercial management and service business are to increase the occupancy rate of
the Shenzhen Fangda Town project and clear the remaining inventory as well as to vigorously promote the sales of the Nanchang
Fangda Center project. The Company will continuously focus on cutting-edge technologies in the property service sector deeply
advance digital construction and actively explore the application of new technologies such as artificial intelligence in property
management. This includes smart customer service intelligent security systems and smart cleaning robots to provide customers
with a more convenient efficient and intelligent property service experience.At the same time the Company will in accordance with the latest policies integrate and optimize existing resources to
steadily advance the application and approval process for the urban renewal project of the Shenzhen Henggang Dakang project.
11. Bank mortgage loan guarantee provided for commercial housing purchasers
□Applicable □ Inapplicable
In line with business practices the Company's commercial management and service business provides mortgage loan
guarantees for commodity housing buyers. The type of guarantee is a phased guarantee. The term of the periodic guarantee lasts
from the effectiveness of guarantee contracts to the completion of mortgage registration and transfer of housing ownership
certificates to banks. As of December 31 2024 the Company has undertaken the above phased guarantee amount of
RMB3940000.
12. Co-investment by directors senior management and supervisors and listed company
□Applicable□ Inapplicable
IV. Core Business Analysis
1. Summary
See "I. Main Business Conditions of the Company During the Reporting Period" in Chapter III Management Discussion and
Analysis.
2. Income and costs
(1) Turnover composition
In RMB
20242023
Proportion in Proportion in YOY change
Amount operating costs Amount operating costs (%)
(%)(%)
Total turnover 4424224197.71 100% 4292204716.01 100% 3.08%
Industry
Metal production 3555996915.26 80.38% 3477209982.02 81.01% 2.27%
Railroad industry 612820581.01 13.85% 558421443.33 13.01% 9.74%
New energy industry 18259004.01 0.41% 19389107.63 0.45% -5.83%
Business service 222272168.63 5.02% 222262890.97 5.18% 0.00%
Others 14875528.80 0.34% 14921292.06 0.35% -0.31%
30Annual Report 2024 of China Fangda Group Co. Ltd.
Product
Curtain wall system
3555996915.2680.38%3477209982.0281.01%2.27%
and materials
Subway screen door
612820581.0113.85%558421443.3313.01%9.74%
and service
PV power generation
18259004.010.41%19389107.630.45%-5.83%
products
Real estate rental and
sales and property 222272168.63 5.02% 222262890.97 5.18% 0.00%
services
Others 14875528.80 0.34% 14921292.06 0.35% -0.31%
District
In China 4027988850.55 91.04% 3886216878.96 90.54% 3.65%
Out of China 396235347.16 8.96% 405987837.05 9.46% -2.40%
Sub-sales mode
Direct sales 4424224197.71 100.00% 4292204716.01 100.00% 3.08%
(2) Industry product region and sales mode accounting for more than 10% of the Company's operating revenue or
operating profit
□Applicable □ Inapplicable
In RMB
Year-on- Year-on-year
Year-on-year
Gross year change change in
Turnover Operating cost change in
margin in operating operating
gross margin
revenue costs
Industry
Metal production 3555996915.26 3087899840.01 13.16% 2.27% 5.03% -2.29%
Business service 222272168.63 57446713.15 74.15% 0.00% 3.97% -0.99%
Railroad industry 612820581.01 434682301.34 29.07% 9.74% 6.36% 2.25%
Product
Curtain wall system
3555996915.263087899840.0113.16%2.27%5.03%-2.29%
and materials
Real estate rental
and sales and 222272168.63 57446713.15 74.15% 0.00% 3.97% -0.99%
property services
Subway screen
612820581.01434682301.3429.07%9.74%6.36%2.25%
door and service
District
In China 4027988850.55 3347223008.41 16.90% 3.65% 6.50% -2.23%
Out of China 396235347.16 240919288.07 39.20% -2.40% -10.50% 5.50%
Sub-sales mode
Direct sales 4424224197.71 3588142296.48 18.90% 3.08% 5.16% -1.61%
Main business statistics adjusted in the recent one year with the statistics criteria adjusted in the report period
□ Applicable□ Inapplicable
The Company needs to comply with the disclosure requirements of the decoration and decoration industry in the Guidelines for the
Self-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.In RMB
Gross Year-on- Year-on-
Turnover Operating cost Year-on-year
margin year change year change change in
in operating in operating
31Annual Report 2024 of China Fangda Group Co. Ltd.
revenue costs gross margin
Industry
Metal production 3555996915.26 3087899840.01 13.16% 2.27% 5.03% -2.29%
Product
Curtain wall system
3555996915.263087899840.0113.16%2.27%5.03%-2.29%
and materials
District
In China 3423722269.52 2994558127.93 12.54% 2.05% 4.70% -2.22%
Out of China 132274645.74 93341712.08 29.43% 8.27% 16.68% -5.08%
Sub-sales mode
Direct sales 3555996915.26 3087899840.01 13.16% 2.27% 5.03% -2.29%
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 3555996915.26 3087899840.01 13.16%
Whether the Company runs business through the Internet
□ Yes□ No
Whether the Company runs overseas projects
□Yes □ No
Number of overseas projects in the
No. Location curtain wall and material industry Total amount of overseas project
(number) contracts (RMB10000)
1 Australia 6 19617.35
2 Asia 10 8226.93
3 Others 1 45.27
Total 17 27889.55
(3) The physical sales revenue is high the labor service revenue
□ Yes□ No
(4) Performance of major sales contracts and major purchase contracts signed by the Company as of the reporting period
□Applicable □ Inapplicable
Performance of signed major sales contracts in the report period
□ Applicable□ Inapplicable
Performance of signed major purchasing contracts in the report period
□ Applicable□ Inapplicable
The Company needs to comply with the disclosure requirements of the decoration and decoration industry in the Guidelines for the
Self-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.In RMB
Cumulative recognized output
Project amount Amount of unfinished part
value
32Annual Report 2024 of China Fangda Group Co. Ltd.
Unfinished project 9450932927.96 3674863053.66 5776069874.30
Major unfinished project
□ Applicable□ Inapplicable
Others:
□ Applicable□ Inapplicable
In RMB
Accumulative Balance of unpaid
Accumulative Estimated
recognized gross Settled amount amount of finished
occurred costs loss
margin project
Finished but not
4678491270.56588702407.240.005277614638.84462185163.49
settled project
Any major outstanding unsettled projects during the reporting period.□ Applicable□ Inapplicable
Others:
□ Applicable□ Inapplicable
(5) Operation cost composition
Industry
In RMB
20242023
YOY
Industry Item Proportion Proportion
Amount in operating Amount in operating change
costs (%) costs (%)
Metal
Raw materials 2034486729.78 65.89% 1932192480.92 65.72% 0.17%
production
Metal Installation and
716075096.7423.19%696854007.5423.70%-0.51%
production engineering costs
Metal
Labor cost 163122222.74 5.28% 167624916.35 5.70% -0.42%
production
Railroad
Raw materials 266583537.05 61.33% 233864345.57 57.22% 4.11%
industry
Railroad Installation and
63941667.4814.71%66075375.0516.17%-1.46%
industry engineering costs
Railroad
Labor cost 63994720.60 14.72% 53754378.09 13.15% 1.57%
industry
Business
Labor cost 15189230.19 26.44% 17680251.05 32.00% -5.56%
service
Business Water and
11944357.2220.79%14072626.3625.47%-4.68%
service electricity
Business Construction and
5369696.309.35%2885553.075.22%4.13%
service installation cost
Business
Land cost 4973045.71 8.66% 2436118.72 4.41% 4.25%
service
Note: In addition to the above costs other cost items in the metal manufacturing and rail transit industries
mainly include energy consumption costs such as water and electricity rent etc. while commercial service
mainly includes costs such as property maintenance and cleaning.The Company needs to comply with the disclosure requirements of the decoration and decoration industry in the Guidelines for the
Self-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.
33Annual Report 2024 of China Fangda Group Co. Ltd.
Main business cost
In RMB
20242023
YOY
Cost
Business type Proportion Proportion change
composition Amount in operating Amount in operating (%)
costs (%) costs (%)
Curtain wall
Raw materials system and 2034486729.78 65.89% 1932192480.92 65.72% 0.17%
materials
Installation and Curtain wall
engineering system and 716075096.74 23.19% 696854007.54 23.70% -0.51%
costs materials
Curtain wall
Labor cost system and 163122222.74 5.28% 167624916.35 5.70% -0.42%
materials
(6) Change to the consolidation scope in the report period
□Yes □ No
In the current period five new subsidiaries were added through establishment: Fangda Facade Singapore Pte Ltd Fangda
Facade Philippines Inc. General Rail Technology Philippines Inc. Fangda Gulf DMCC and Global MEGA International
Holdings Limited. Additionally one new subsidiary was added through non-business merger: Fangda Architectural Technology
Company. Meanwhile three subsidiaries were deregistered in the current period: Fangda Xunfu Investment Fangda Lifu
Investment and Fangda Investment Partnership.
(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) 1219781078.17
Proportion of sales to top 5 customers in the annual sales 27.57%
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 287511967.05 6.50%
Guangdong Oujia Holdings
2275843635.746.23%
Co. Ltd.
3 No.3 271953188.45 6.15%
4 MTR Corporation Limited 249379222.30 5.64%
5 No.5 135093064.63 3.05%
Total -- 1219781078.17 27.57%
34Annual Report 2024 of China Fangda Group Co. Ltd.
Other information about major customers
□Applicable □ Inapplicable
There is no affiliation between the Company and its top five customers. There are no direct or indirect ownership interests held by
the Company's directors supervisors senior management personnel core technical personnel shareholders with more than 5%
stake actual controllers or other related parties among its major clients.Main suppliers
Purchase amount of top 5 suppliers (RMB) 700317930.65
Proportion of purchase amount of top 5 suppliers in the total annual
18.44%
purchase amount
Percentage of purchasing amount of related parties in top 5 customers in
0.00%
the annual purchasing amount
Information of the Company's top 5 suppliers
Percentage in the annual
No. Supplier Purchase amount (RMB)
purchase amount
1 No.1 207543053.89 5.46%
2 No.2 132115198.81 3.48%
3 No.3 128100967.36 3.37%
4 No.4 118628032.57 3.12%
5 No.5 113930678.02 3.00%
Total -- 700317930.65 18.44%
Other information about major suppliers
□Applicable □ Inapplicable
There is no affiliation between the Company and its top five suppliers. There are no direct or indirect ownership interests held by
the Company's directors supervisors senior management personnel core technical personnel shareholders with more than 5%
stake actual controllers or other related parties among its major suppliers.
3. Expenses
In RMB
2024 2023 YOY change (%) Notes
Sales expense 55140153.13 51009165.29 8.10%
Administrative expense 191667435.20 174674755.81 9.73%
Financial expenses 65297933.04 72826944.85 -10.34%
R&D cost 171031371.73 180070801.25 -5.02%
4. R&D investment
□Applicable □ Inapplicable
Expected impact on the
R&D project name Purpose Progress Objective future development of
the Company
Research and Improve product Some projects have By enhancing This approach aligns
development of new quality improve completed research and standardization with the national
35Annual Report 2024 of China Fangda Group Co. Ltd.
industrialized curtain installation efficiency development modularization and policies on low-carbon
wall system improve construction performance testing low-carbon product energy efficiency and
safety and reduce and prototype design we aim to environmental
energy consumption production and will be elevate the level of protection. By
and construction deployed in actual prefabricated expanding the
energy consumption in projects. construction application scenarios of
the construction development and our products and
process. building energy improving our
efficiency maintaining technological
a leading position in advantages in the
the industry. industry we will drive
continuous company
growth and enhance
our market
competitiveness.This aligns with
national policy
guidelines and helps to
Some projects have
By enhancing the level improve the comfort of
Enhance product completed research and
of system intelligence residential and
Research and intelligence improve development
we aim to reduce workspaces while
development of product performance performance testing
building energy reducing building
intelligent curtain wall reduce energy and prototype
consumption and meet energy consumption. It
system consumption and production and will be
the demands of the holds promising market
develop new products. deployed in actual
market. prospects and can
projects.adapt to the future
development trends of
building curtain walls.Enhance the
automation
intelligence and
Improve the
digitalization levels of
automation and
production equipment
Research and intelligence of
aligning with the
development of an Improve production production processes
concepts of green
integrated flexible efficiency and adapt to Completed increase production
factories and green
intelligent production customized production. capacity output and
production to ensure
system product quality and
production capacity
reduce production
and product quality
costs.while reducing
manufacturing and
management costs.Improving the design
and manufacturing of
Research and Enhance product
Optimize product the Company's
development of a new safety reliability and
Some projects have system performance platform door system is
generation of platform availability to meet the
been completed and maintain industry beneficial for the
door control system for advanced requirements
leadership. Company to maintain
rail transit of the core system.its technological
leadership advantage.Expand application
scenarios for company
Enhance product Improve product products enhance
Intelligent platform
intelligence improve Some projects have performance and industry-leading
door system
product performance been completed reliability maintaining technological
development
and reliability. industry leadership. advantages and
broaden sales channels
for the Company.
36Annual Report 2024 of China Fangda Group Co. Ltd.
Develop products that
conform to the concept
of green and
Research on metal Improve processing environmentally
Improve processing
plate forming methods efficiency product friendly buildings
efficiency and product Completed
and surface treatment quality and appearance enhance industry
quality.processes effects. technological leading
advantages and
enhance
competitiveness.R&D personnel
2024 2023 Change
R&D staff number 575 678 -15.19%
R&D staff percentage 19.21% 21.50% -2.29%
Academic structure of R&D personnel
Bachelor 423 394 7.36%
Master's degree 9 8 12.50%
Age composition of R&D personnel
Under 30 234 242 -3.31%
30-40242273-11.36%
R&D investment
2024 2023 Change
R&D investment amount (RMB) 171031371.73 180070801.25 -5.02%
Investment percentage in operation
3.87%4.20%-0.33%
turnover
Capitalization of R&D investment
0.000.000.00%
amount (RMB)
Percentage of capitalization of R&D
0.00%0.00%0.00%
investment in the R&D investment
Reasons and effects of major changes in the composition of R&D personnel of the Company
□ Applicable□ Inapplicable
Reason for the increase in the percentage of R&D investment in the business turnover
□ Applicable□ Inapplicable
Explanation of the increase in the capitalization of R&D investment
□ Applicable□ Inapplicable
5. Cash flow
In RMB
Item 2024 2023 YOY change (%)
Sub-total of cash inflow from business
4615555164.424318247194.046.88%
operations
Sub-total of cash outflow from business
4344661070.994018504991.968.12%
operations
Cash flow generated by business
270894093.43299742202.08-9.62%
operations net
37Annual Report 2024 of China Fangda Group Co. Ltd.
Sub-total of cash inflow generated from
10161087.41375640.162605.01%
investment
Subtotal of cash outflows 258855539.89 118940749.97 117.63%
Cash flow generated by investment
-248694452.48-118565109.81-109.75%
activities net
Subtotal of cash inflow from financing
3967291354.432876228738.6437.93%
activities
Subtotal of cash outflow from financing
3738674210.693063841135.3322.03%
activities
Net cash flow generated by financing
228617143.74-187612396.69221.86%
activities
Net increase in cash and cash equivalents 252064097.92 -4016810.64 6375.23%
Explanation of major changes in related data from the same period last year
□Applicable □ Inapplicable
The Company's net cash flow from investing activities decreased by 109.75% compared to last year primarily due to payments for
the construction and equipment of the Fangda (Ganzhou) Low-Carbon Intelligent Manufacturing Base during the current period.The net cash flow from financing activities increased by 221.86% compared to last year mainly due to an increase in the net
amount of bank loans received during the current period.Explanation of major difference between the cash flow generated by operating activities and the net profit in the year
□Applicable □ Inapplicable
The main reason for the difference between the net cash flow from operating activities and the net profit for the year during the
reporting period is the provision for various asset impairment losses amounting to RMB145947400 in the current period.V. Non-core Business Analysis
□Applicable □ Inapplicable
In RMB
Whether
Amount Profit percentage Reason
continuous
Investment income -4547362.60 -2.85% No
Gain/loss caused by Mainly due to adjustment of fair value of
-18394198.42 -11.54% No
changes in fair value investment real estate
Mainly the provision for impairment of
Assets impairment -35260579.49 -22.13% No
contract assets
Non-operating revenue 1712412.29 1.07% No
Non-business expenses 2226292.50 1.40% No
Mainly bad debt provision corresponding to
Credit impairment loss -110686852.25 -69.46% No
accounts receivable
VI. Assets and Liabilities
1. Major changes in assets composition
In RMB
38Annual Report 2024 of China Fangda Group Co. Ltd.
End of 2024 Beginning of 2024
Proportion Proportion Change (% ) Notes
Amount in total Amount in total
assets assets
Monetary capital 1491777341.84 11.01% 1425151116.24 10.65% 0.36%
Account receivable 1123506196.98 8.29% 911486914.19 6.81% 1.48%
Contract assets 2247698479.96 16.58% 2488429802.41 18.60% -2.02%
Inventory 705666408.74 5.21% 755624486.51 5.65% -0.44%
Investment real estate 5835036098.20 43.05% 5756809168.26 43.04% 0.01%
Long-term share equity
56690973.970.42%54757017.400.41%0.01%
investment
in fixed assets 940894344.39 6.94% 620828178.38 4.64% 2.30%
Construction in process 7265104.44 0.05% 109414347.33 0.82% -0.77%
Use right assets 15683121.04 0.12% 20776829.58 0.16% -0.04%
Short-term loans 1663696422.48 12.27% 2208055039.21 16.51% -4.24%
Contract liabilities 268594041.26 1.98% 198164209.47 1.48% 0.50%
Long-term loans 1137000000.00 8.39% 660000000.00 4.93% 3.46%
Lease liabilities 10652607.48 0.08% 6675870.04 0.05% 0.03%
Non-current liabilities
131374661.050.97%64135136.460.48%0.49%
due in 1 year
The proportion of overseas assets is relatively high
□ Applicable□ Inapplicable
2. Assets and liabilities measured at fair value
□Applicable □ Inapplicable
In RMB
Accumulati
ve changes
Gain/loss in fair Amount
Impairment Amount
Opening caused by value purchased Other Closing
Item provided in sold in the
amount changes in accounting in the change amount
the period period
fair value into the period
income
account
Financial assets
1.
Derivative
173737.06
financial
assets
2.
6979428.14568000.1
Receivable
40
financing
3. Other
non-current 7455617.1 1087037.2 6519740.1
3098.25148062.00
financial 7 5 7
assets
Subtotal 14608782. 3098.25 148062.00 1087037.2 11087740.
39Annual Report 2024 of China Fangda Group Co. Ltd.
37527
-
Investment 57475721 21641056 5157977.6 12296393. 11662704 58350360
22024705.
real estate 71.31 9.98 8 00 8.00 98.20
79
-
57621809216410565306039.613383430.1166270458461238
Total 22021607.
53.689.988258.0038.47
54
Financial 1520625.0
0.00
liabilities 0
Other changes: The increase in other changes in investment properties is mainly due to the transfer of some properties from self-
use to rental during the current period and the adoption of the fair value model for measurement. For details see Section X.Financial Reports VII. Notes to Consolidated Financial Statements 15. Investment Properties.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 2024 (RMB) Reason
Monetary capital 460052125.50Various deposits
Notes receivable 34490806.03Bills endorsed or discounted but not yet due
Account receivable 33851277.04 Loan by pledge
in fixed assets 355978425.04 Loan by pledge
Intangible assets 23212463.67 Loan by pledge
Investment real estate 1822483172.10 Loan by pledge
Equity pledge 200000000.00 100% stake in Fangda Property Developmentheld by the Company
Total 2930068269.38
VII. Investment
1. General situation
□Applicable □ Inapplicable
Investment (yuan) in the report period Investment (yuan) in the previous period Change
232441120.0069500000.00234.45%
2. Major equity investment in the report period
□Applicable□ Inapplicable
3. Major non-equity investment in the report period
□Applicable □ Inapplicable
In RMB
Metho Wheth Industr Invest Actual Estima Accum Reaso Disclo Disclo
Project Capital Progre
d of er it is ies ment invest te ulated ns for sure sure
40Annual Report 2024 of China Fangda Group Co. Ltd.
name invest fixed involv in the ment source ss return incom failing date (if source
ment assets ed in report by the e to any) (if
invest invest period end of realize reach any)
ment ment the d by the
project report the end planne
s period of the d
reporti progre
ng ss and
period expect
ed
incom
e
Mainly
produc
e
PVDF
alumin
um Annou
veneer nceme
nano nt on
alumin Invest
um ment
veneer and
and Constr
other uction
new of
Fangd materi Fangd
a als a
Own
(Ganz smart (Ganz
funds
hou) curtain hou)
and
Low- wall Low
23244 30244 loans Decem
Carbo Self- system 100.00 Carbo
Yes 1120. 1120. from 0.00 0.00 -- ber 17
n built % n
00 00 financi 2022
Intellig photov Intellig
al
ent oltaic ent
institut
Manuf buildin Manuf
ions
acturin g acturin
g Base integra g
tion Headq
system uarters
Base
alumin release
um d on
alloy http://
compo www.c
nents ninfo.c
and om.cn/
precisi
on
steel
compo
nents.
2324430244
Total -- -- -- 1120. 1120. -- -- 0.00 0.00 -- -- --
0000
41Annual Report 2024 of China Fangda Group Co. Ltd.
4. Financial assets investment
(1) Securities investment
□Applicable□ Inapplicable
The Company made no investment in securities in the report period
2. Derivative investment
□Applicable □ Inapplicable
1) Derivative investments for hedging purposes during the reporting period
□Applicable □ Inapplicable
In RMB10000
Proportion
Accumulati
of closing
ve changes
investment
Gain/loss in fair
Initial Amount amount in
Opening caused by value Amount in Closing
Type investment sold in this the closing
amount changes in accounting this period amount
amount period net assets
fair value into the
in the
income
report
account
period
Shanghai
0.000.00-152.06-152.064608.450.004608.450.75%
aluminum
Forward
foreign 6210.72 6210.72 -17.37 0.00 1932.29 8143.01 0.00 0.00%
exchange
Total 6210.72 6210.72 -169.43 -152.06 6540.74 8143.01 4608.45 0.75%
Accounting
policies
and
specific
accounting
principles
of hedging
business
during the
The aluminum futures and forward foreign exchange businesses of the Company meet the applicable conditions of
reporting
hedge accounting specified in the accounting standards and are applicable to hedge accounting which are classified
period as
as cash flow hedging. The corresponding accounting policies and accounting principles have not changed from the
well as
previous reporting period.whether
there are
significant
changes
compared
with the
previous
reporting
period
Description The actual income of the aluminum futures hedging instrument and the spot value change of the hedged aluminum
of actual ingot in the reporting period is RMB-481100; The gains and losses arising from forward foreign exchange hedging
42Annual Report 2024 of China Fangda Group Co. Ltd.
profit and instruments offset the value changes of the hedged items due to exchange rate fluctuations.loss during
the
reporting
period
Description
The profit and loss generated by the Company's hedging instrument can offset the value change of the hedged item
of hedging
and the hedging effect of the hedging business is good.effect
Capital
Self-owned fund
source
Risk
analysis
and control
measures
for the
derivative The aluminum futures hedging and foreign exchange derivatives trading businesses carried out by the Company are
holding in derivative investment businesses. The derivative investment business carried out by the Company follows the basic
the report principle of locking the price and exchange rate of raw materials does not carry out speculative trading operations
period and carries out strict risk control when signing hedging contracts and closing positions. The Company has
(including established and implemented the "Derivatives Investment Business Management Measures" and "Commodity
without Futures Hedging Business Internal Control and Risk Management System". It has made clear regulations on the
limitation approval authority business management risk management information disclosure and file management of
market derivatives trading business which can effectively control the risk of the Company's derivatives holding positions.liquidity
credit
operation
and legal
risks)
Changes in
the market
price or fair
value of the
derivative
in the
report
period the
analysis of
the
Fair value of derivatives are measured at open prices in the open market
derivative's
fair value
should
disclose the
method
used and
related
assumption
s and
parameters.Lawsuit
No
involved
Disclosure
date of
derivative October 29 2024
investment
approval by
the Board
43Annual Report 2024 of China Fangda Group Co. Ltd.
of
Directors
2) Derivative investment for the purpose of speculation during the reporting period
□Applicable□ Inapplicable
During the reporting period there was no derivative investment for the purpose of speculation.
5. Use of raised capital
□Applicable□ Inapplicable
The Company used no raised capital in the report period.VIII. Major assets and equity sales
1. Major assets sales
□Applicable□ Inapplicable
The Company sold no assets in the report period.
2. Major equity sales
□Applicable□ Inapplicable
IX. Analysis of major joint stock companies
□Applicable □ Inapplicable
Major subsidiaries and joint stock companies affecting more than 10% of the Company's net profit
In RMB
Main Registered Operation
Company Type Total assets Net assets Turnover Net profit
business capital profit
Curtain
Fangda Subsidiarie wall system 60000000 56502083 18271691 32574704 42522450. 58291151.Jianke s and 0.00 97.22 25.94 73.40 32 69
materials
Curtain
Fangda
Subsidiarie wall system 10000000 30611283 11671870 29097652 21631166. 19878380.Shanghai
s and 0.00 6.09 6.99 7.54 08 02
Zhijian
materials
Subway
Fangda Subsidiarie 10500000 10323107 39440304 61282058 95460100. 82433670.screen door
Zhiyuan s 0.00 91.63 5.96 1.01 43 84
and service
Fangda Subsidiarie Real estate 20000000 56674613 26275539 13074470 32796214. 24278156.Property s sales 0.00 54.07 48.41 2.16 56 52
Fangda
Property
Property Subsidiarie 10000000. 79448255. 57674633. 77822477. 24945633. 18727641.manageme
Manageme s 00 36 49 00 40 22
nt service
nt
Acquisition and disposal of subsidiaries in the report period
44Annual Report 2024 of China Fangda Group Co. Ltd.
□Applicable □ Inapplicable
Impacts on overall
Acquisition and disposal of
production
Company subsidiaries in the report
operation and
period
performance
Fangda Facade Singapore Pte Ltd Newly set None
Fangda Facade Philippines Inc. Newly set None
General Rail Technology PhilippinesInc. Newly set None
Fangda Gulf DMCC Newly set None
Global MEGA International Holdings Limited Newly set None
Acquired through non-
Shenzhen Fangda Construction Technology Co. Ltd. None
business merger
Shenzhen Xunfu Investment Co. Ltd Cancel None
Shenzhen Lifu Investment Co. Ltd Cancel None
Shenzhen Fangda Investment Partnership (Limited Partnership) Cancel None
X. Structural entities controlled by the Company
□Applicable□ Inapplicable
XI. Future Prospect
(1) Competition map and development trend
1. Smart curtain wall and material system industry
In recent years as the concentration of the curtain wall market has further increased international competition has intensified
and trends toward greening and intelligence have developed industry competition has intensified and the degree of industry
concentration and scale will continue to deepen. Leading enterprises in the industry which possess advantages in talent
technology brand and capital and have the capability to undertake complex innovative and comprehensive projects are
increasingly highlighting their competitive edge in the market. In the future technological innovations dominated by artificial
intelligence (AI) modular assembly and Building Information Modeling (BIM) will become important driving forces for the
industry's development. The accelerated construction of the national unified market has provided more market opportunities for
the industry's leading enterprises. The high-quality construction of "One Belt One Road" is going deeper and deeper creating a
favorable market environment for enterprises to expand overseas markets.
2. Rail transit platform screen door equipment and system industry
As an important component of the modern transportation system and a major livelihood project rail transit is increasingly
recognized for its many advantages such as being fast efficient low-carbon and environmentally friendly and it receives support
from national industrial policies. In recent years the national urbanization development strategy has continuously injected
momentum into the urban rail transit industry. The regional coordinated development strategy has been further implemented with
major national strategies such as the deployment of "new infrastructure" accelerating the networking of rail transit in city clusters
and metropolitan areas and promoting the accelerated development of metropolitan area (suburban) railways. The development of
intercity and metropolitan area (suburban) rail transit is expected to experience growth. As the number of rail transit lines in
operation continues to increase equipment is continuously entering maintenance periods and the overhaul and maintenance
market is expected to further grow.
3. New energy industry
Currently carbon neutrality has become a global consensus for sustainable development. Guided by the "dual carbon"
strategy and supported by national policies in China the photovoltaic power generation industry has entered a new stage of high-
quality development. As a green and environmentally friendly power generation method the Company's distributed photovoltaic
45Annual Report 2024 of China Fangda Group Co. Ltd.
power stations will leverage its industrial advantages to undertake the construction of photovoltaic power stations and promote the
business of building-integrated photovoltaics (BIPV) based on market conditions. This will drive the high-quality development of
the new energy industry.
4. Commercial management and services
In 2025 with continued policy support confidence in the real estate market is gradually strengthening and the socio-
economic environment continues to improve. Regional differentiation will bring new development opportunities to the
Guangdong-Hong Kong-Macao Greater Bay Area where industrial development is mature population attraction is strong and
enterprise occupancy rates are high. The integration of Shenzhen and Hong Kong is continuously advancing and the Shenzhen
market still holds significant potential for the future.
(2) Company development strategy and business plan
In 2025 the Company will focus on the theme of "Digital Intelligence Empowerment and Scientific Management" uphold a
high sense of responsibility continue to consolidate its core business actively explore new businesses and markets and effectively
control operational risks. Through technological innovation process upgrades and digital empowerment the Company will seize
opportunities in new-quality productivity actively aiming to capture the high ground in the future curtain wall and rail transit
platform screen door industries. In line with the annual business objectives the Company will comprehensively undertake the
following key tasks:
(1) Focus on innovation and R&D to enhance core competitiveness
Innovation is the core driving force for the Company's development. The Company will optimize the innovation
environment from systems and mechanisms closely focus on market demand and enhance industry-university-research
collaboration with universities and research institutions. By leveraging external intellectual resources the Company will actively
explore new technologies products industries and markets suitable for its development cultivate new-quality productivity
promote digital tools explore AI applications in business practices empower company management and high-quality industrial
development establish a data-driven decision-making mechanism and enhance the Company's core competitiveness.
(2) Strengthen market research and precisely position the layout
To achieve precise market positioning and scientific strategic layout in-depth market research is required with a particular
focus on detailed analysis of industry development trends. While consolidating the foundation of the domestic market the
Company will deeply cultivate overseas markets actively explore regions with broad prospects and great potential and further
expand market share and brand influence.
(3) Enhance project management and improve performance quality
The Company will emphasize management during project execution continue to strengthen the collection of project
acceptance payments settlement payments and quality assurance deposits shorten the settlement cycle reduce settlement risks
and safeguard company rights. The Company will reshape the quality and safety management chain establish a mechanism for
identifying quality and safety incidents clarify the reward and punishment system strengthen employees' sense of responsibility
and ensure that quality and responsibility are clearly implemented to each responsible person.
(4) Strengthen talent pipeline development
The Company will enhance talent identification cultivation management and utilization build a mechanism for key
positions' functions and responsibilities qualifications rotational training and selection and appointment and further standardize
talent management and development. A talent reserve system will be established optimizing the talent structure from aspects such
as age professional knowledge and ability level strengthening talent cultivation and team building and ensuring the supply of
talent for key positions especially for overseas business expansion.
(3) Potential risks
1. Risks of macro environment and policy changes
46Annual Report 2024 of China Fangda Group Co. Ltd.
The Company's main business segments are closely related to macroeconomic and industrial policies and are greatly affected
by the overall macro environment. The year 2025 is a year in which the Company takes significant strides towards the global
market. If there are adverse changes in the international and domestic macroeconomic environment slow economic development
and reduced investment in fixed assets in the future which will affect the demand of public building curtain wall industry and rail
transit equipment industry or face industry depression or excessive competition which will have an adverse impact on the
Company's future profitability even project delay or suspension deferred payment of projects under construction etc thus
affecting the Company's operating performance.To better respond to the opportunities and challenges brought about by changes in the economic environment and policy
shifts the Company will closely monitor changes in domestic and international macroeconomic and policy situations and
promptly adjust its business strategies. At the same time the Company will actively explore the application of artificial
intelligence (AI) in company management and business operations empowering management and high-quality industrial
development increasing market share and addressing risks brought about by macroeconomic and policy changes.
2. Market competition risks
In the rail transit PSD market the technology of other domestic manufacturers is becoming more and more mature and the
Company may face the risk of intensified market competition. If the Company cannot maintain a leading position in the market it
will have a certain adverse impact on the development and benefits of the Company's rail transit PSD business. In this regard the
Company will continue to adopt a stable business policy improve the competitive advantage of products through technological
innovation and fine management accelerate the return of funds and improve the operation efficiency and market competitiveness
of the Company.The Company will closely track industry development trends and technological updates enhancing product competitive
advantages through technological innovation and refined management and accelerating the recovery of funds. By relying on
industry-university-research collaborations the Company will jointly conduct research on cutting-edge technologies and product
development accelerating the transformation of scientific and technological achievements and pursuing high-quality growth with
high technology and high efficiency. While consolidating the domestic market the Company will intensify the expansion of
international markets solidifying the Company's dual-cycle development pattern of domestic and international markets.
3. Production and operation risks
The macro-economy and market demand have added to the fluctuation in prices of main raw materials and labor affecting the
Company's profitability and creating additional production and operation risks for the Company.The Company will hedge and transfer the price fluctuation risk of some raw materials by using futures product hedging
negotiating with partners to supplement the contract amount reasonably arranging material procurement plan and other measures;
The Company implements a strict supplier management mechanism actively improves the scientific and technological level of
production management increases technology research and development is committed to process improvement improves the
automation and intelligence of production equipment and reduces the loss of raw materials. The Company will continue to
promote intelligent and digital construction system widely apply new technologies and processes strengthen staff skill training
and improve quality and efficiency on the basis of ensuring safety.
4. Management risks
In recent years with the expansion of the Company's business scale and the increase of the number of subsidiaries the daily
management of the Company is becoming more and more difficult which may face the management risk of industrial scale
expansion. In addition in recent years the regulatory requirements for listed companies have been continuously improved and
deepened. The Company needs to further strengthen management continue to promote management reform constantly optimize
process and organizational structure improve various rules and regulations and vigorously introduce high-quality highly skilled
and multidisciplinary technology and management talents gradually optimize the allocation of human resources optimize the
echelon structure and effectively reduce the management risks brought by business development.
47Annual Report 2024 of China Fangda Group Co. Ltd.
XII. Reception of investigations communications or interviews in the reporting period
□Applicable □ Inapplicable
Main content
involved and Disclosure of
Time/date Place Way Visitor Visitor
materials information
provided
Investor
Relationship
Northeast Business and
January 15 Onsite Record Form
Meeting room Institution Securities: future
2024 investigation on
Zhuang Jiajun development
www.cninfo.co
m.cn
Great Wall
Securities: Hua Investor
Jiangyue Wang Relationship
Business and
January 25 Onsite Long Record Form
Meeting room Institution future
2024 investigation Zhongtian on
development
Guofu www.cninfo.co
Securities: Zhu m.cn
Yi
CITIC
Securities: Lai
Zhijian Wu
Investor
Shaozhen
Relationship
Shenzhen Business and
February 28 Onsite Record Form
Meeting room Institution Chenghechang future
2024 investigation on
Private development
www.cninfo.co
Securities
m.cn
Company:
Jiang Jin Dai
Jiuhou
Investors Investor
Online participating in Relationship
Business and
Network communication the Company's Record Form
April 9 2024 Others future
platform on online 2023 on
development
platforms Performance www.cninfo.co
Presentation m.cn
Investor
Shanxi Relationship
Business and
Onsite Securities: Ye Record Form
July 3 2024 Meeting room Institution future
investigation Zhongzheng on
development
Feng Rui www.cninfo.co
m.cn
Investor
Relationship
Eastmoney Business and
Onsite Record Form
July 15 2024 Meeting room Institution Securities: future
investigation on
Wang Pianpian development
www.cninfo.co
m.cn
Investor
Online Investors Relationship
Business and
December 12 http://rs.p5w.ne communication participating in Record Form
Others future
2024 t/ on online the collective on
development
platforms reception day www.cninfo.co
m.cn
48Annual Report 2024 of China Fangda Group Co. Ltd.
XIII. Status of Formulation and Implementation of Market Value Management System and
Valuation Enhancement Plan
Has the Company established a market value management system
□ Yes□ No
Has the Company disclosed a valuation enhancement plan
□Yes □ No
On April 22 2025 the Company disclosed the "China Fangda Group Co. Ltd. Valuation Enhancement Plan" on CNINFO
(http://www.cninfo.com.cn). This document specifically explains the triggering circumstances and procedures for the formulation
of the valuation enhancement plan and provides a detailed introduction to the specific measures the Company has developed to
enhance its valuation. The plan is closely aligned with the Company's actual situation and development strategy which helps
improve the Company's operational quality and investment value enhance investor returns and promote the Company's long-term
stable development.XIV. Implementation Status of the "Dual Enhancement of Quality and Returns" Action
Plan
Has the Company disclosed the announcement of the "Dual Enhancement of Quality and Returns" action plan
□ Yes□ No
49Annual Report 2024 of China Fangda Group Co. Ltd.
Chapter IV Corporation Governance
I. Overview
During the reporting period the Company strictly adhered to the requirements of relevant laws regulations and normative
documents such as the Company Law Securities Law Measures for the Administration of Independent Directors of Listed
Companies and Guidelines for Corporate Governance of Listed Companies. We continuously optimized the corporate governance
structure established and improved the internal control system and various internal management systems. We fully utilized the
participation of independent directors in decision-making supervisory checks and balances and professional consultation roles.We clarified the responsibilities and authority in decision-making execution and supervision forming an effective division of
responsibilities and a system of checks and balances. We constantly promoted standardized operation levels and safeguarded the
interests of investors and the Company.Any significant difference between the actual situation of corporate governance and the laws administrative regulations and the
provisions on the governance of listed companies issued by the CSRC
□ Yes□ No
There is no significant difference between the actual situation of corporate governance and the laws administrative regulations and
the provisions on the governance of listed companies issued by the CSRC.II. The independence of the Company relative to the controlling shareholders and actual
controllers in ensuring the Company's assets personnel finance institutions business etc
The Company is completely independent from its controlling shareholder and actual controller in terms of business personnel
assets organization and finance possessing independent and complete business and autonomous operational capabilities. Details
of the meetings are disclosed as follows:
(1) In the aspect of business: the Company has its own purchasing production sales and customer service system which
performing independently. There is not any material related transactions occurred with the controlling shareholders.
(2) In personnel the labor management personnel and salary management are operated independently from the controlling
shareholder. The senior managements take salaries from the Company and none of them takes senior management position in the
controlling party.
(3) In assets the Company owns its production supplementary production system and accessory equipment 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.III. Competition
□Applicable□ Inapplicable
50Annual Report 2024 of China Fangda Group Co. Ltd.
IV. Annual and extraordinary shareholder meetings held during the report period
1. Annual shareholder meeting during the report period
Participation of
Meeting Type Date Date of disclosure Meeting resolution
investors
For details please
refer to the "China
Fangda Group Co.Ltd. 2024 First
Extraordinary
1st Provisional Extraordinary
General Meeting
Shareholders' shareholders' 23.93% January 8 2024 January 9 2024
Resolution
Meeting 2024 meeting
Announcement"
published on
CNINFO
(http://www.cninfo.com.cn).Please refer to the
information
published on
http://www.cninfo.com.cn
2023 Annual Annual
Announcement on
Shareholder shareholders' 24.21% April 22 2024 April 23 2024
the Resolution of
Meeting meeting
the 2023 General
Meeting of
Shareholders of
China Fangda
Group Co. Ltd.For details please
refer to the "China
Fangda Group Co.Ltd. 2024 Second
Extraordinary
2nd Provisional Extraordinary
November 13 November 14 General Meeting
Shareholders’ shareholders' 24.72%
2024 2024 Resolution
Meeting 2024 meeting
Announcement"
published on
CNINFO
(http://www.cninfo.com.cn).
2. Shareholders of preference shares of which voting right resume convening an extraordinary
shareholders' meeting
□Applicable□ Inapplicable
V. Particulars about the Directors Supervisors and Senior Management
1. Profiles
Gende Positio Job
Name Age Startin End Numb Increas Decrea Other Numb
Reaso
r n status g date date of er of ed sed increas er of ns
51Annual Report 2024 of China Fangda Group Co. Ltd.
of the the shares shares shares e and shares
term term held at in this in this decrea held at
beginn period period se end of
ing of (share) (share) (share) the
the period
period
Nove
Xiong March
Chair In mber 5110 5110 Inappli
Jianmi M 67 19 0 0 0
man office 20 257 257 cable
ng 2026
1995
Chair
March March
Xiong man In Inappli
M 42 20 19 0 0 0 0 0
Xi Presid office cable
20232026
ent
Vice March March
Xiong In Inappli
M 42 Chair 29 19 0 0 0 0 0
Xi office cable
man 2024 2026
Xiong April March
Direct In Inappli
Jianwe M 56 16 19 0 0 0 0 0
or office cable
i 1999 2026
April March
Lin Direct In Inappli
M 47 11 19 0 0 0 0 0
Kebin or office cable
20172026
Vice March
Lin In June 6 Inappli
M 47 preside 19 0 0 0 0 0
Kebin office 2008 cable
nt 2026
Indepe
Cao March
ndent In May 8 Inappli
Zhong M 46 19 0 0 0 0 0
directo office 2020 cable
xiong 2026
r
Indepe
March March
Zhan ndent In Inappli
M 60 20 19 0 0 0 0 0
Weizai directo office cable
20232026
r
Indepe
Januar March
Song ndent In Inappli
F 46 y 8 19 0 0 0 0 0
Ming directo office cable
20242026
r
Superv
isory
Comm
March March
Cao ittee In Inappli
F 46 20 19 0 0 0 0 0
Naisi meetin office cable
20232026
g
conven
er
Fan March
Superv In May 8 Inappli
Xiaod M 38 19 8800 0 0 0 8800
isor office 2020 cable
ong 2026
Nove
Xi March
Superv In mber Inappli
Yingzh M 40 19 0 0 0 0 0
isor office 13 cable
e 2026
2024
Wei Vice July March
In Inappli
Yuexin M 56 preside 29 19 0 0 0 0 0
office cable
g nt 2011 2026
Dong M 46 Vice In March March 0 0 0 0 0 Inappli
52Annual Report 2024 of China Fangda Group Co. Ltd.
Gelin preside office 20 19 cable
nt 2023 2026
Secret Nove
Ye March
ary of In mber Inappli
Zhiqin M 50 19 29000 0 0 0 29000
the office 13 cable
g 2026
Board 2024
Secret Septe
Xiao June
ary of Resign mber Inappli
Yangji M 41 23 0 0 0 0 0
the ed 26 cable
an 2020
Board 2024
Nove
Ye March
Superv Resign mber Inappli
Zhiqin M 50 20 29000 0 0 0 29000
isor ed 13 cable
g 2023
2024
Indepe
Januar
Huang ndent Resign May 8 Inappli
M 62 y 8 0 0 0 0 0
Yaying directo ed 2020 cable
2024
r
51775177
Total -- -- -- -- -- -- 0 0 0 --
057057
During the reporting period whether there was any resignation of directors and supervisors and dismissal of senior managers
during their term of office
□Yes □ No
During the reporting period the Company's independent director Huang Yaying and board secretary Xiao Yangjian resigned for
personal reasons and supervisor Ye Zhiqing resigned due to work adjustments. Please see below for changes in the Company's
directors supervisors and senior management personnel.Changes in the Directors Supervisors and Senior Executives
□Applicable □ Inapplicable
Name Job Type Date Reason
Resigned from the
position of independent
Huang Yaying Independent director Resigned January 8 2024
director for personal
reasons
Elected as an
independent director at
Song Ming Independent director Elected January 8 2024 the 2024 First
Extraordinary General
Meeting
Elected as Vice
Chairman at the
Xiong Xi Vice Chairman Elected March 29 2024 seventh meeting of the
tenth Board of
Directors
Resigned from the
position of board
Xiao Yangjian Secretary of the Board Dismissed September 26 2024
secretary for personal
reasons
Resigned from the
position of supervisor
Ye Zhiqing Supervisor Resigned November 13 2024
due to work
adjustments
Xi Yingzhe Supervisor Elected November 13 2024 Elected as a supervisor
53Annual Report 2024 of China Fangda Group Co. Ltd.
at the 2024 Second
Extraordinary General
Meeting
Appointed as the board
secretary at the 11th
Ye Zhiqing Secretary of the Board Engaged November 13 2024
meeting of the 10th
Board of Directors
2. Office Description
Professional background work experience and main duties in the Company of existing directors supervisors and senior
management
(1) Mr. Xiong Jianming: Ph.D. in Business Administration Philosophy Senior Engineer Founder of the Company and currently
Chairman of the Company. He is a deputy to the 13th and 14th National People's Congress a member of the sixth session of the
China Society for Promotion of the Guangcai Program the president of the Gan Merchants Association and the chairman of the
Federation of Industry and Commerce of Nanshan District Shenzhen. Previously worked at Jiangxi Machinery Industry Design
and Research Institute Shenzhen Municipal People's Government Shekou District Management Bureau and other units. Served as
a representative of the 10th Guangdong Provincial People's Congress a member of the 11th Jiangxi Provincial Political
Consultative Conference a representative of the 4th Party Congress of the Communist Party of China in Shenzhen a
representative of the 2nd 3rd and 6th Shenzhen Municipal People's Congress a member of the 5th Shenzhen Municipal Political
Consultative Conference and the founding president of the Shenzhen Semiconductor Lighting Promotion Association.
(2) Mr. Xiong Xi: Master's degree currently serves as the vice chairman and president of the Company chairman of Fangda
Zhiyuan Technology and a member of the seventh Shenzhen CPPCC (Chinese People's Political Consultative Conference).Previously served as a database engineer at China Merchants Bank Co. Ltd. deputy director of the Technology Information
Department deputy director of the Human Resources Department assistant to the president and deputy general manager of
Fangda Construction Technology Company.
(3) Mr. Xiong Jianwei: Master of business administration. Now he is the director of the Company chairman of Fangda Jianke
company and member of the 14th Nanchang CPPCC Standing Committee.
(4) Mr. Lin Kebin: Bachelor's degree currently serves as a director and vice president of the Company and general manager of
Fangda Zhiyuan Technology Company. Previously served as the Company's financial director.
(5) Dr. Cao Zhongxiong: Ph.D. currently serves as an independent director of the Company assistant director of the China
Development Institute (Shenzhen) and director of the Institute of Digital Strategy and Economics. He is engaged in research and
consulting work in new economy and corporate strategy. He used to be a technician of China Chemical Group Bluestar Detergent
Co. Ltd. and the executive director of the New Economy Research Institute of the Comprehensive Development Research
Institute (Shenzhen China).
(6) Zhan Weizai: doctor senior accountant. Currently serving as an independent director of the Company chairman of Shenzhen
Jiangcairen Education Management Co. Ltd. supervisor of Shenzhen Dewo Investment Development Co. Ltd. and Shenzhen
Dewo Industrial Co. Ltd. director of China Telling Co. Ltd. independent director of Shenzhen Everwin Precision Technology
Co. Ltd. and JWIPC Technology Co. Ltd. visiting professor at the School of Economics and Management of Wuhan University
and the School of Mathematics and Statistics of Central China Normal University and part-time mentor at Jiangxi University of
Finance and Economics. He used to be Secretary of the General Branch of the League of Economic Management Department of
Xizang University Deputy Manager of the Finance Department of Shenzhen Donghui Industrial Co. Ltd. Director and Chief
Financial Officer of Shenzhen Qiaoshe Industrial Co. Ltd. Chief Financial Officer of Shenzhen Tourism (Group) Co. Ltd.Deputy General Manager of Hua'an Property Insurance Co. Ltd. Deputy General Manager of Hua'an Insurance Asset
54Annual Report 2024 of China Fangda Group Co. Ltd.
Management Center Independent Director of Chongqing Zijian Electronics Co. Ltd. and Independent Director of Weiye
Construction Group Co. Ltd.
(7) Ms. Song Ming: Doctor of Laws currently an independent director of the Company Executive Director of the Research Center
for SAR Legislation of Shenzhen University Director of the Department of Constitutional and Administrative Law of the School
of Law of Shenzhen University Director of the Research Center for the Administrative Rule of Law of Shenzhen University and
Executive Director of the Shenzhen Law Society doctoral supervisor Chairman of the Research Society for the Study of
Administrative Law of the Shenzhen Law Society Invited Supervisor of the Shenzhen Municipal Party Committee of Political and
Legal Affairs and Expert Juror of the Shenzhen Administrative Trial Center. She also serves as an invited supervisor of the
Shenzhen Municipal Committee of Political and Legal Affairs and an expert juror of the Shenzhen Administrative Trial Center.
(8) Ms. Cao Naisi: Bachelor's degree intermediate economist currently the convenor of the Supervisory Committee of the
Company and the 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.
(9) Mr. Fan Xiaodong: Bachelor's degree in Law currently serving as the Supervisor of the Company and Deputy Director of the
Legal Department.
(10) Mr. Xi Yingzhe: Bachelor's degree Certified Internal Auditor (CIA) currently serving as the Supervisor of the Company and
Director of the Audit and Supervision Department. He previously held the position of Director of the Audit Department at CGN
Energy Conservation Industry Development Co. Ltd.
(11) Mr. Wei Yuexing: Undergraduate Senior Engineer currently Vice President of the Company and General Manager of
Fangda Jianke.
(12) Mr. Dong Green: Bachelor's degree Senior Engineer currently Vice President of the Company Deputy to the Eighth
National People's Congress of Nanshan District Shenzhen. He has served as a supervisor of the Company a designer of Fangda
Construction Engineering Company a chief engineer of a design institute a general manager of Fangda Construction Engineering
Beijing Branch and a deputy general manager of Fangda Construction Engineering.
(13) Mr. Ye Zhiqing: Bachelor's degree Senior Engineer currently serving as the Secretary of the Board of Directors of the
Company and Chairman of the Supervisory Board of Fangda Zhiyuan Technology. He previously served as Supervisor of the
Company General Manager of Fangda Real Estate Company Deputy Director of Fangda Jianke Design Institute Assistant
General Manager of Fangda Jianke and General Manager of the Shanghai Branch of Fangda Jianke.Offices held at shareholder entities
□Applicable □ Inapplicable
Whether any
Starting date of the End date of the remuneration is
Name Shareholder entity Office
term term paid at the
shareholder entity
Shengjiu
Xiong Jianming Director October 6 2011 No
Investment Ltd.Office description No
Offices held at other entities
□Applicable □ Inapplicable
Whether any
Position held in Starting date of the End date of the remuneration is
Name Entity name
another entity term term paid at the
shareholder entity
Jiangxi Business
Xiong Jianming Director January 10 2018 No
Innovative
55Annual Report 2024 of China Fangda Group Co. Ltd.
Property Joint
Stock Co. Ltd.Gongqing City
Shengtai
Investment
Xiong Jianming Executive partner December 1 2022 No
Partnership
(Limited
Partnership)
Assistant to the
General
Dean and Director
Development
Cao Zhongxiong of the Institute of January 1 2022 Yes
Research Institute
Digital Strategy
(Shenzhen China)
and Economics.Shenzhen Dewo
Industrial
Zhan Weizai Supervisor June 1 2010 January 23 2025 Yes
Development Co.Ltd.Shenzhen Jiangcai
Education
Zhan Weizai Chairman July 1 2017 No
Management Co.Ltd.Shenzhen Dewo
Investment
Zhan Weizai Supervisor June 1 2012 No
Development Co.Ltd.Shenzhen Everwin
Precision Independent
Zhan Weizai May 15 2020 Yes
Technology Co director
Ltd.JWIPC
Independent
Zhan Weizai Technology Co. November 1 2024 Yes
director
Ltd.Telling
Telecommunicatio November 26
Zhan Weizai Director Yes
n Holding Co. 2021
Ltd.Guangdong Huilai
Zhan Weizai Rural Commercial Supervisor July 29 2020 Yes
Bank Co. Ltd.Shenzhen
Huazhang
Zhan Weizai Financing Supervisor December 1 2012 No
Guarantee Co.Ltd.Director of the
Law School of Center for
Song Ming Shenzhen Administrative April 3 2017 Yes
University Rule of Law
Research
Office description No
Penalties given by existing securities regulators on directors supervisors and senior management and those who have resigned in
the report period
□ Applicable□ Inapplicable
56Annual Report 2024 of China Fangda Group Co. Ltd.
III. Remunerations of the Directors Supervisors and Senior Executives
Decision making procedures basis and actual payment of remunerations of the Directors Supervisors and Senior Executives
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.The remuneration scheme for directors and supervisors of the Company shall be determined by the shareholders' general meeting
while the compensation scheme for senior executives shall be determined by the Board of Directors. Additionally the
remuneration and assessment committee of the Board of Directors shall review the actual payment of remuneration on an annual
basis.Remunerations of the Directors Supervisors and Senior Executives of the Company During the reporting period
In RMB10000
Remuneration
Total
Name Gender Age Position Job status from related
remuneration
parties
Xiong Jianming M 67 Chairman In office 224.77 No
Vice Chairman
Xiong Xi M 42 In office 217.55 No
and President
Xiong Jianwei M 56 Director In office 104.08 No
Director vice
Lin Kebin M 47 In office 118.98 No
president
Cao Independent
M 46 In office 8.00 No
Zhongxiong director
Independent
Zhan Weizai M 60 In office 8.00 No
director
Independent
Song Ming F 46 In office 7.86 No
director
Supervisory
Committee
Cao Naisi F 46 In office 56.36 No
meeting
convener
Fan Xiaodong M 38 Supervisor In office 49.36 No
Xi Yingzhe M 40 Supervisor In office 16.02 No
Wei Yuexing M 56 Vice president In office 100.3 No
Dong Gelin M 46 Vice president In office 76.96 No
Secretary of the
Ye Zhiqing M 50 In office 80.41 No
Board
Secretary of the
Xiao Yangjian M 40 Resigned 49.20 No
Board
Independent
Huang Yaying M 61 Resigned 0.14 No
director
Total -- -- -- -- 1117.99 --
Other matters
□ Applicable□ Inapplicable
VI. Performance of directors during the report period
1. Board of Directors in the reporting period
Meeting Date Date of disclosure Meeting resolution
57Annual Report 2024 of China Fangda Group Co. Ltd.
Proposal approved:
1. Chairman's Work Report
for 2023;
2. The Board of Directors'
Work Report 2023;
3. Annual Report 2023 and
the Summary;
4. Financial Settlement
Report 2023;
5. Proposal on the Company's
profit distribution plan for
2023;
6. The Company's Internal
Control Self-Evaluation
Report 2023;
7. Proposal on applying for
The seventh meeting of the
March 29 2024 April 2 2024 credit guarantee from banks
tenth Board of Directors
and other financial
institutions;
8. The Company's proposal on
engaging of the CPA for year
2024;
9. Proposal on the Company's
2023 social responsibility
report;
10. Proposal regarding the
election of Vice Chairman of
the Board of Directors;
11. Proposal on changing the
use of partial premises;
12. The proposal of
convening the 2023
Shareholders' Meeting.Reviewed and approved: The
The eighth meeting of the
April 26 2024 Company's 2024 First Quarter
Tenth Board of Directors
Report.Reviewing and approving the
The ninth meeting of the tenth
August 26 2024 Interim Report 2024 and the
Board of Directors
Summary of the Report
Proposal approved:
1. Proposal on the Company's
2024 Third Quarter Report;
2. Resolution on continuing to
engage in futures hedging and
The tenth meeting of the tenth foreign exchange derivative
October 25 2024 October 29 2024
Board of Directors trading business in the
Company;
3. Proposal on convening the
Company's second
extraordinary shareholders'
meeting in 2024.Reviewed and approved:
The eleventh meeting of the Proposal on appointing the
November 13 2024 November 14 2024
tenth Board of Directors company secretary of the
Board of Directors.Reviewed and approved:
The twelfth meeting of the
December 19 2024 Proposal on changing the use
tenth Board of Directors
of certain real estate
58Annual Report 2024 of China Fangda Group Co. Ltd.
properties.
2. Directors' presenting of board meetings and shareholders' meetings in the report period
Directors' presenting of board meetings and shareholders' meetings in the report period
Time of Number of
Number of Number of Absent for Number of
board board
Name of board Presented by board two shareholders'
meetings meetings
director meetings telecom meetings not consecutive meetings
should have attended by
attended attended meetings attended
attended proxy
Xiong
6 5 1 0 0 No 3
Jianming
Xiong Xi 6 5 1 0 0 No 3
Xiong
6 5 1 0 0 No 3
Jianwei
Lin Kebin 6 5 1 0 0 No 3
Cao
6 3 3 0 0 No 3
Zhongxiong
Zhan Weizai 6 3 3 0 0 No 3
Song Ming 6 3 3 0 0 No 2
Huang
0 0 0 0 0 No 1
Yaying
Statement for absence for two consecutive board meetings
Inapplicable
3. Objection raised by directors
Any objection raised by directors against the Company's related issues
□ Yes□ No
Directors made no objection on related issued of the Company in the report period.
4. Other statement for performance of directors
Adoption of suggestion proposed by directors
□Yes □ No
Statement for suggestion adopted or not by the Company
The directors of the Company strictly comply with the provisions of laws and regulations such as the Company Law
Securities LawMeasures for the Administration of Independent Directors of Listed Companies Guidelines for Corporate
Governance of Listed Companies Shenzhen Stock Exchange Listing Rules Articles of Association and other relevant company
systems. They fulfill their responsibilities in accordance with the law. During the reporting period the directors of the Company
attended the meetings of the Board of Directors and expressed their views and in-depth discussions on various proposals
submitted to the board of directors for consideration made suggestions for the healthy development of the Company fully
considered the interests and demands of minority shareholders when making decisions and effectively strengthened the
scientificity and feasibility of the decision-making of the board of directors. At the same time the directors of the Company
actively participate in relevant training improve their ability to perform their duties actively pay attention to the Company's
operation and management information financial status and major events and promote the sustainable stable and healthy
development of the Company's production and operation. The independent directors have diligently performed their duties and
59Annual Report 2024 of China Fangda Group Co. Ltd.
carefully reviewed various resolutions of the Board of Directors playing an active role in safeguarding the interests of the
Company and minority shareholders.VII. Special committees under the board of directors during the reporting period
Numb
Other
Commit er of Details of
Member Important opinions and perform
tee meetin Date Meeting content objections
ship suggestions put forward ance of
name gs (if any)
duties
held
Heard and considered: 1.Review of the Company's After full communication
Xiong March production and operation in and discussion all
Jianmin
Develo 29 2024 2023; 2. The Company's 2024 proposals were
g Xiong
pment annual production and unanimously passed.Xi Cao
Strategy 2 operation work plan.Zhongxi
Commit
ong Listened to and reviewed the
tee
Xiong review of the Company's After full communication
Jianwei August production and operation in and discussion all
26 2024 the first half of 2024 and the proposals were
main work in the second half unanimously passed.of 2024.The financial and
accounting report of the
Company for 2023 has
been prepared in
accordance with the new
accounting standards for
Listened to and reviewed the business enterprises and
financial statements of the relevant financial
March Company in 2023 after the regulations of the
21 2024 preliminary opinions issued Company which truly
by the annual audit reflects the financial
accountant. status of the Company as
Zhan of December 31 2023
Weizai and the operating results
Audit
Song and cash flow in 2023. It
Commit 5
Ming is agreed to determine the
tee
Xiong final financial report for
Jianwei 2023 on this basis.The meeting listened to the
report from Yongcheng
Accounting Firm on the
Company's audit situation for
2023 and the Company's 2023
After thorough
financial work report and
communication and
reviewed and approved the
discussion it was
March following proposals:
unanimously agreed to
29 2024 1. The Company's audited
submit proposals 1 2 and
financial accounting report
4 to the Company's Board
for 2023;
of Directors for review.
2. Proposal on appointing the
audit institution for 2024;
3. The Company's internal
audit work report for 2023;
4. The Company's internal
60Annual Report 2024 of China Fangda Group Co. Ltd.
control self-assessment report
for 2023;
5. The Company's internal
audit work plan for 2024.After full communication
and discussion the
The financial statements of proposal was
April the Company for the first unanimously adopted and
26 2024 quarter of 2024 were agreed to be submitted to
reviewed and approved. the board of directors of
the Company for
deliberation.After full communication
Reviewed the financial work
and discussion the
report and internal audit work
proposal was
report for the first half of
August unanimously adopted and
2024 and approved the
26 2024 agreed to be submitted to
Company's unaudited semi-
the board of directors of
annual financial statements
the Company for
for 2024.deliberation.Reviewed and approved: 1.After full communication
The Company's financial and
and discussion it was
accounting statements for the
unanimously approved
October third quarter of 2024; 2.and agreed to submit all
25 2024 Proposal on continuing to
proposals to the board of
carry out futures hedging and
directors of the Company
foreign exchange derivatives
for deliberation.trading business.In 2023 the Company's
directors and senior
management diligently
and responsibly
completed the annual
Remune
Song business objectives and
ration
Ming The proposal on the other work tasks. The
and
Xiong March remuneration of directors and remuneration received by
Assess 1
Xi Cao 29 2024 senior managers in 2023 was the Company's directors
ment
Zhongxi considered and adopted. and senior management in
Commit
ong 2023 was in accordance
tee
with the Company's
remuneration
management plan for
directors and senior
management.VIII. 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 2024
In 2024 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 2024 supervisory committee's work plan is as follows:
61Annual Report 2024 of China Fangda Group Co. Ltd.
I. Opinions of the Supervisory Board on relevant matters of the Company during the reporting period
1. Legal compliance
In 2024 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
In 2024 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 2024 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 2024 the Company did not violate the securities law the standards
for the governance of listed companies the self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 1 -
standardized operation of listed companies on the main board and the Company's internal control system. The 2024 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) Fulfillment of social responsibilities
In 2024 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 2024 all of which are on-site meetings. All proposal were approved and disclosed as required:
Convening
No. Meeting Date Topic
method
1. Review the Company's 2023 Supervisory Board
Work Report";
2. Review the Company's 2023Annual Report Full
Text and Summary";
The seventh
3. Review the Company's 2023 Financial Settlement
meeting of the
March 29 Report";
1 tenth On-site
2024 4. Review the Company's 2023 Profit Distribution
Supervisory
Plan;
Board
5. Review the proposal for appointing the audit
institution for 2024;
6. Review the Company's 2023 Internal Control Self-
Assessment Report.The eighth April 26 Review the proposal for the Company's 2024 First
2 On-site
meeting of the 2024 Quarter Report.
62Annual Report 2024 of China Fangda Group Co. Ltd.
tenth
Supervisory
Board
The ninth
meeting of the
August 26 Proposal regarding the Interim Report 2024 and the
3 tenth On-site
2024 Summary of the Report
Supervisory
Board
1. Review the proposal for the Company's 2024 Third
Quarter Report;
The tenth
2. Review the proposal on the by-election of non-
meeting of the
October 25 employee representative supervisors for the tenth
4 tenth On-site
2024 Supervisory Board;
Supervisory
3. Review the proposal to request the Company's
Board
Board of Directors to convene an extraordinary
shareholders' meeting.IX. Employees
1. Staff number professional composition and education
Staff number of the parent at the end of the reporting period 59
Number of on-the-job employees of major subsidiaries at the
2935
end of the reporting period (person)
Total number of active employees at the end of the reporting
2994
period (person)
Number of employees receiving remuneration in the period 2994
Resigned and retired staff number to whom the parent and
0
major subsidiaries need to pay remuneration
Professional composition
Categories of professions Number of people
Production 1379
Sales & Marketing 136
Technicians 1243
Finance &Accounting 63
Administration 173
Total 2994
Education
Categories of education Number of people
High school or below 1251
College diploma 593
Bachelor 1102
Master's degree 46
63Annual Report 2024 of China Fangda Group Co. Ltd.
Doctor's degree 2
Total 2994
2. Remuneration policy
Staff remuneration policy: The Company's staff remuneration comprises post wage performance wage allowance and annual
bonus. The Company has set up an economic responsibility assessment system according to the annual operation target and
responsibility indicators for all departments. The performance wage is determined by the economic indicators management
indicators optimization indicators and internal control. The annual bonus is determined by the Company's annual profit and
fulfillment of targets set for various departments. The staff remuneration and welfare will be adjusted according to the Company's
business operation and changes in the local standard of living and price index.Since 2008 the Company has been implementing the Regulations on Paid Annual Leave for Employees (State Council Order
No. 514) issued by the State Council. All employees of the Company are entitled to paid annual leave in accordance with these
regulations.
3. Training program
Staff training plan: The Company has paid continuous attention to training and development of the staff and introduces
innovative learning as part of the long-term strategy. We provide training programs through different channels and in different
fields for different employees will help them fulfill their works including new staff training on-the-job training operation and
management training programs. These programs have largely elevated capabilities of the staff and underpin the success of the
Company.
4. Labor outsourcing
□Applicable □ Inapplicable
Total number of hours of labor outsourcing 17659126.79
Total remuneration paid for labor outsourcing (RMB) 667515354.51
X. Profit distribution of the Company and conversion of capital reserve into share capital
Establishment implementation or adjustment of profit distribution policies especially the cash dividend policy during the report
period
□Applicable □ Inapplicable
During the report period the Company implemented the profit distribution plan for 2023. According to the deliberation and
approval of the 2023 annual general meeting held on April 22 2024 the Company's 2023 profit distribution plan is as follows: the
Company will distribute cash dividends of RMB0.80 (including tax) per 10 shares to all shareholders based on the total share
capital of 1073874227 shares after the closing of the stock market on the equity registration date when the profit distribution
plan is implemented with a total of RMB85909938.16 in cash and will not distribute bonus shares nor transfer capital reserves
to share capital.The Company attaches importance to the reasonable return to investors implements a continuous and stable profit
distribution policy the formulation and implementation of the profit distribution policy comply with the relevant provisions of the
Articles of Association and the requirements of the resolutions of the General Meeting of Shareholders the dividend standard and
proportion are clear and clear the relevant decision-making procedures and mechanisms are complete the independent directors
64Annual Report 2024 of China Fangda Group Co. Ltd.
perform their duties and play their due role and the Company's profit distribution plans are submitted to the General Meeting of
Shareholders for consideration The profit distribution policy is compliant and transparent. Small and medium-sized shareholders
have the opportunity to fully express their opinions and appeals and their legitimate rights and interests have been fully protected.Explanation of Cash Dividend Distribution Policies
Comply with the Articles of Association or resolution made at
Yes
the General Shareholders' Meeting
Clear and definite distribution standard and proportion Yes
Decision-making procedure and mechanism Yes
Independent directors fulfill their duties Yes
If the Company does not distribute cash dividends specific
reasons should be disclosed as well as the measures to be taken Inapplicable
next to enhance investor returns:
Middle and small shareholders express their opinions and
Yes
claims. There rights are well protected.Cash dividend distribution policies are adjusted or revised
Inapplicable
according to law
The company made profits during the reporting period and the profit available to shareholders of the parent company was positive
but no cash dividend distribution plan was proposed
□ Applicable□ Inapplicable
Profit Distribution and Reserve Capitalization in the Report Period
□Applicable □ Inapplicable
Bonus shares for every ten shares 0
Cash dividend for every ten shares (yuan tax-included) 0.50
A total number of shares as the distribution basis 1073874227
Cash dividend (including tax) 53693711.35
Cash dividend paid in other manners (such as repurchase of
0.00
shares)
Total cash dividend (including other manners) 53693711.35
Distributable profit (yuan) 1105291052.65
Proportion of cash dividend in the distributable profit
100%
(including other manners)
Cash dividend
The Company is in a fast growth stage. Therefore the cash dividend will reach 20% of the profit distribution at least.Details of profit distribution or reserve capitalization plan
The profit distribution plan for 2024 approved by the board of directors of the Company is: the Company plans to distribute cash
dividends of RMB0.50 (tax included) for every 10 shares to all shareholders based on the total share capital of 1073874227
shares on December 31 2024 with a total cash distribution of RMB53693711.35. No dividend share or capitalization share was
issued in the year. After the announcement of the Company's profit distribution plan to the time of implementation if the totalshare capital changes in accordance with the principle of “distributing cash dividends of RMB 0.50 (tax included) for every 10shares” the total share capital after the market closes on the equity registration date when the profit distribution plan is
implemented shall be used. The total amount of cash dividends will be disclosed in the Company's profit distribution
implementation announcement.XI. Share incentive schemes staff shareholding program or other incentive plans
□Applicable□ Inapplicable
65Annual Report 2024 of China Fangda Group Co. Ltd.
There is no share incentive schemes staff shareholding program or other incentive plans in the report period
XII. Construction and implementation of internal control system during the reporting
period
1. Construction and implementation of internal control
The Company has established and improved its internal control system in accordance with the Basic Norms for Enterprise
Internal Control and its supporting guidelines as well as other internal control supervision requirements combined with the actual
situation of the Company. The risk internal control management organizational system of the Company is jointly composed of the
Audit Committee and the Internal Audit Department which supervises and evaluates the Company's internal control management
improves the Company's standardized operation level and promotes the healthy and sustainable development of the Company.The 2024 Internal Control Self Evaluation Report disclosed by the Company on http://www.cninfo.com.cn truthfully and
accurately reflects the actual situation of the Company's internal control. During the reporting period the Company did not have
any significant deficiencies in internal control.
2. Major problems in internal control discovered in the report period
□ Yes□ No
XIII. Management and control of subsidiaries during the reporting period
Problems
Integration Solution Follow up
Company Integration plan encountered in Solutions taken
progress progress solution plan
integration
Inapplicable No No No No No No
XIV. Internal control evaluation report or internal control audit report
1. Internal control report
Date of disclosure of the internal control
April 22 2025
evaluation report
Disclosure of the internal control
www.cninfo.com.cn
evaluation report
Percentage of assets in the evaluation
scope in the total assets in the 98.54%
consolidated financial statements
Percentage of operation income in the
evaluation scope in the total operation
99.07%
income in the consolidated financial
statements
Standard
Type Financial report Non-financial report
I. Deficiencies with the following I. The following condition indicates
characteristics are identified as significant problems in the internal
Standard
significant deficiencies: control of non-financial reports: 1.Serious violation against national laws
66Annual Report 2024 of China Fangda Group Co. Ltd.
1. Ineffective control environment; regulations or specifications; 2. Serious
business system problems and system
2. Fraudulent behavior by company ineffectiveness; 3. Major or important
directors supervisors and senior problems cannot be corrected; 4. Lack of
management resulting in significant loss internal control and poor management; 5.and adverse impact on the Company; Loss of management personnel or key
employees; 6. Safety and environmental
3. Significant misstatement found in the accidents that cause major adverse
current financial statements by the impacts; 7. Other situations that cause
certified public accountant which was major adverse impacts on the Company.not detected by internal control during its II. The following situations indicate that
operation. there may be significant problems with
4. Ineffective supervision by the the internal control: 1. business system
Company's audit department over problems and system ineffectiveness; 2.internal controls. 2. The following Major or important problems cannot be
problems are considered significant corrected; 3. Other situations that cause
problems: 1 accounting policies are major adverse impacts on the Company
selected and used without complying to III. The following situation indicate
widely accepted accounting standards; 2. likely normal problems in the internal
No anti-corrupt and important balance control: 1. Problems in the general
system and control measures are taken; business system; 2. Normal problems in
3. Separate or multiple problems in the the internal control supervision cannot be
preparation of financial reports which correctly promptly.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.
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
See the recognition standard of the
million 2. Important problem: 1.Standard internal control problems for financial
Mistakes affecting 1%-5% of the pre-tax
statements
profit in the consolidated statements; 2.Mistakes affecting 1%-5% the
consolidated assets. III. Normal problem:
1. Mistakes affecting less than 1% of the
pre-tax profit and total assets of the
consolidate statements.Significant problems in financial
0
statements
Significant problems in non-financial
0
statements
Important problems in financial
0
statements
Important problems in non-financial
0
statements
2. Internal control audit report
□Applicable □ Inapplicable
67Annual Report 2024 of China Fangda Group Co. Ltd.
Comments in the internal control audit report
We believe that China Fangda Group has maintained effective internal control on financial reports according to Basic Regulations
on Enterprise Internal Control and related regulations on December 31 2024.Disclosure of internal auditor's report Disclosed
Date of disclosure of the internal control audit report April 22 2025
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
XV. Rectification of problems in self inspection of special actions for governance of listed
companies
Inapplicable
68Annual Report 2024 of China Fangda Group Co. Ltd.
Chapter V. Environmental and social responsibility
I. Major environmental problem
Whether the Company and its subsidiaries are key polluting companies disclosed by the environmental protection authority
□ Yes□ No
Administrative penalties for environmental problems during the reporting period
Impact on the
Rectification
Company or production and
Reason Violations Punishment result measures of the
subsidiary operation of listed
Company
companies
No No No No No No
Refer to other environmental information disclosed by key pollutant discharge units
During the reporting period the listed company and its subsidiaries were not key pollutant discharge units announced by the
environmental protection department and there were no administrative penalties for environmental problems.Measures and effects taken to reduce carbon emissions during the reporting period
□Applicable □ Inapplicable
The Company is committed to promoting green manufacturing and integrating the concepts of environmental social and
corporate governance (ESG) into its corporate culture and operations. Since its inception the Company has adhered to the mission
of green and environmental protection actively exploring the path of environmental friendliness and complementary development
of the enterprise. The Company's smart curtain wall photovoltaic building integration (BIPV) project rail transit PSD system
solar photovoltaic power station and other industries have environmental protection genes. Combined with the characteristics of
the industry the Company integrates the concept of environmental protection into technological innovation successively develops
national and provincial key environmental protection new products such as ventilated and photovoltaic curtain walls nano self-
cleaning and fireproof honeycomb aluminum composite plates and takes the lead in developing the subway PSD system with
independent intellectual property rights in China. The Company's "full height open platform screen door of rail transit" technology
has reduced the energy consumption of air conditioning and ventilation system by more than 20% and the products of double-
layer breathing curtain wall system save energy by more than 30% compared with the traditional curtain wall. In 2024 the
subsidiary Fangda Zhiyuan received the "Silver" certification medal in the EcoVadis sustainability rating ranking among the top
15% of rated companies globally. This recognition fully affirms the Company's ongoing efforts in environmental protection labor
and human rights business ethics and sustainable procurement.In response to the national "14th Five-Year Plan" for ecological and environmental protection and to vigorously promote the
high-end intelligent and green development of the manufacturing industry the newly constructed Fangda (Ganzhou) Low-Carbon
Intelligent Manufacturing Base Project has built leading environmental protection equipment and intelligent equipment. This
project centered on "intensive construction and shared pollution control" is an environmental public infrastructure project and has
been recognized as a "Green Island" project by the Ministry of Ecology and Environment. The project aims to reduce the pollution
control costs for surrounding small and medium-sized enterprises by centralizing pollutant treatment while also improving
regional environmental management efficiency. This demonstrates the Company's high sense of responsibility and foresight in
environmental protection.During the reporting period the Company was awarded the National (Shenzhen) Excellent Foreign-Invested Enterprise—
Green and Carbon Reduction Promotion Award. The new energy industry photovoltaic power generation amounted to
69Annual Report 2024 of China Fangda Group Co. Ltd.
approximately 18.64 million kilowatt-hours equivalent to saving 6710 tons of standard coal reducing carbon dioxide emissions
by nearly 18583 tons reducing sulfur dioxide emissions by 211.9 tons and reducing water usage by 74560 tons. The China
Electronics Building project undertaken by the subsidiary Fangda Construction Technology was evaluated as a two-star level
according to the Green Building Evaluation Standard (GB/T50378-2014) with a green building area of 208500 square meters.Reasons for non-disclosure of other environmental information
The Company and its subsidiaries are not among the key pollutant discharge units published by the environmental protection
department and there is no other environmental information that needs to be disclosed.II. Social responsibilities
While creating enterprise value the Company adheres to its original mission attaches great importance to the sustainable
development of the environment and society and actively performs its social responsibilities. In 2024 the Company
effectively fulfilled its social responsibilities in areas such as standardized governance and
operations protection of shareholders' and creditors' rights safety production environmental
protection and energy conservation protection of employees' rights protection of the rights of
suppliers customers and consumers public relations and social welfare undertakings. For
specific details please refer to the 2024 Corporate Social Responsibility Report of China Fangda
Group Co. Ltd. published on http://www.cninfo.com.cn.III. Consolidate and expand the achievements of poverty alleviation and rural revitalization
While creating economic value the Company actively practices corporate social responsibility to promote sustainable social
development. By making positive examples in the fields of ecological environmental protection and promoting social development
the Company has demonstrated the responsibility of an industry leader. The Company has carried out industrial support in
Guangdong Shaanxi Guizhou Jiangxi and Tibet helping rural areas to plant cash crops such as tea mushrooms and lilies
according to local conditions supporting rural collective breeding industry projects constructing greenhouse photovoltaic power
stations distributed photovoltaic power stations and other rural industrial "blood-creation" projects and fostering new impetus to
the development of rural economy helping to build a thriving industry and ecological development. Helping to build a beautiful
countryside in the new era of prosperous industry ecological livability civilized countryside effective governance and affluent
life which has achieved good social effects and gained high praise from all walks of life.In addition the Company has been actively involved in various public welfare activities including public education public
health rural medical care disaster relief environmental protection rural revitalization and many other aspects. The Company has
been consecutively awarded honors such as "Outstanding Enterprise in Fulfilling Social Responsibility".
70Annual Report 2024 of China Fangda Group Co. Ltd.
Chapter VI Significant Events
I. Performance of promises
1. Commitments that have been fulfilled and not fulfilled by actual controller shareholders related
parties acquirers of the Company
□Applicable□ Inapplicable
There is no commitment that has not been fulfilled by actual controller shareholders related parties acquirers of the Company
2. Explanation and reason of profit forecasts on assets or projects that remain in the report period
□Applicable□ Inapplicable
II. Non-operating capital use by the controlling shareholder or related parties in the
reporting term
□Applicable□ Inapplicable
The controlling shareholder and its affiliates occupied no capital for non-operating purpose of the Company during the report
period.III. Incompliant external guarantee
□Applicable□ Inapplicable
The Company made no incompliant external guarantee in the report period.IV. Description of the board of directors on the latest "non-standard audit report"
□Applicable□ Inapplicable
V. 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. Description of changes in accounting policies accounting estimates or correction of
major accounting errors compared with the financial report of the previous year
□Applicable □ Inapplicable
(1) Changes in accounting policies
* Implement the interpretation of accounting standards for Business Enterprises No. 17
71Annual Report 2024 of China Fangda Group Co. Ltd.
On October 25 2023 theMinistry of Finance issued the Interpretation No. 17 of the Accounting Standards for Business
Enterprises (CK [2023] No. 21 hereinafter referred to as Interpretation No. 17) which will be implemented from January 1 2024.Starting from January 1 2024 the Company implements the provisions of Interpretation No. 17.A. On the classification of current liabilities and non-current liabilities
This provision has no significant impact on the Company's financial statements for the reporting period.B. On the disclosure of supplier financing arrangements
In accordance with the requirements of Interpretation No. 17 the Company's financial report under section VII "Notes to the
Consolidated Financial Statements" item 62 "(4) Supplier Financing Arrangements" has disclosed relevant information on
supplier financing arrangements for the year 2024.C. On the accounting treatment of sale and leaseback transactions
This provision has no significant impact on the Company's financial statements for the reporting period.* Reclassification of warranty expenses
In March 2024 the Ministry of Finance issued the Compilation of Application Guidelines for Enterprise Accounting
Standards 2024 and on December 6 2024 released Interpretation No. 18 of the Accounting Standards for Business Enterprises
which stipulates that warranty expenses should be included in the operating costs.Starting from the fiscal year 2024 the Company will implement this provision by including warranty expenses in the
operating costs. The implementation of this accounting treatment provision has a cumulative impact of RMB0 on the retained
earnings as reported in the earliest period of the financial statements. The adjustments to the relevant items in the comparative
financial statements for the year 2023 for both the consolidated and the parent company are as follows:
In RMB
For 2023 (consolidated) For 2023 (parent company)
Affected item Before After
Before adjustment After adjustment
adjustment adjustment
Sales expense 58488714.76 51009165.29 There is no impact on the data
Operating cost 3404642473.33 3412122022.80 of the parent company.
(2) Changes in major accounting estimates
During the reporting period the Company had no significant changes in accounting estimates.
72Annual Report 2024 of China Fangda Group Co. Ltd.
VII. Statement of change in the financial statement consolidation scope compared with the
previous financial report
□Applicable □ Inapplicable
In the current period five new subsidiaries were added through establishment: Fangda Facade Singapore Pte Ltd Fangda
Facade Philippines Inc. General Rail Technology Philippines Inc. Fangda Gulf DMCC and Global MEGA International
Holdings Limited. Additionally one new subsidiary was added through non-business merger: Fangda Architectural Technology
Company. Meanwhile three subsidiaries were deregistered in the current period: Fangda Xunfu Investment Fangda Lifu
Investment and Fangda Investment Partnership.VIII. Engaging and dismissing of CPA
CPA engaged currently
Domestic public accountants name RSM Thornton (limited liability partnership)
Remuneration for the domestic public accountants (in
150
RMB10000)
Consecutive years of service by the domestic public
6
accountants
Name of certified accountants of the domestic public
Zhou Junchao Liu Gen Hu Gaosheng
accountants
Zhou Junchao has provided audit services for 2 consecutive
Consecutive years of service by the domestic public
years Liu Gen for 1 year and Hu Gaosheng for 5 consecutive
accountants
years.Overseas public accountants name (if any) No
Remuneration for the overseas public accountants (in
0
RMB10000)
Consecutive years of service by the overseas public
No
accountants (if any)
Name of certified accountants of the overseas public
No
accountants (if any)
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.IX. Delisting after disclosure of annual report
□Applicable□ Inapplicable
73Annual Report 2024 of China Fangda Group Co. Ltd.
X. Bankruptcy and capital reorganizing
□Applicable□ Inapplicable
The Company has no bankruptcy or reorganization events in the report period.XI. Significant lawsuit and arbitration
□Applicable□ Inapplicable
The Company has no significant lawsuit or arbitration affair in the report period.As of the end of the reporting period the total amount involved in other lawsuits not meeting the criteria for major litigation
disclosure is approximately RMB460000000 of which the amount involved as the defendant totals approximately
RMB35000000. These lawsuits are multiple independent cases and will not have a significant adverse impact on the Company's
financial condition and ability to continue operations.XII. Punishment and rectification
□Applicable□ Inapplicable
The Company received no penalty and made no correction in the report period.XIII. Credibility of the Company controlling shareholder and actual controller
□Applicable □ Inapplicable
The Company and its controlling shareholders and actual controllers do not fail to perform the effective judgment of the court and
the debts with a large amount are not paid off when due.XIV. Material related transactions
1. Related transactions related to routine operation
□Applicable□ Inapplicable
The Company made no related transaction related to daily operating in the report period.
2. Related transactions related to assets transactions
□Applicable□ Inapplicable
The Company made no related transaction of assets or equity requisition and sales in the report period.
3. Related transactions related to joint external investment
□Applicable□ Inapplicable
The Company made no related transaction of joint external investment in the report period.
4. Related credits and debts
□Applicable□ Inapplicable
The Company had no related debt in the report period.
74Annual Report 2024 of China Fangda Group Co. Ltd.
5. Transactions with related financial companies
□Applicable□ Inapplicable
There is no deposit loan credit or other financial business between the Company and the related financial company.
6. Transactions between financial companies controlled by the Company and related parties
□Applicable□ Inapplicable
There is no deposit loan credit or other financial business between the financial company controlled by the Company and its
related parties.
7. Other major related transactions
□Applicable□ Inapplicable
The Company has no other significant related transaction in the report period.XV. Significant contracts and performance
1. Asset entrusting leasing contracting
(1) Asset entrusting
□Applicable□ Inapplicable
The Company made no custody in the report period.
(2) Contracting
□Applicable□ Inapplicable
The Company made no contract in the report period
(3) Leasing
□Applicable□ Inapplicable
The Company does not have any significant leasing activities during the reporting period.
2. Significant guarantee
□Applicable □ Inapplicable
In RMB10000
External guarantees made by the Company and subsidiaries (exclude those made for subsidiaries)
Actual
Guarant
Date of Guarante amount Type of Counter
ee Actual Collatera Complet Related
disclosur e of guarante guarante Term
provided date l (if any) ed or not party
e amount guarante e e (if any)
to
e
No
Guarantee provided to subsidiaries
75Annual Report 2024 of China Fangda Group Co. Ltd.
Actual
Guarant
Date of Guarante amount Type of Counter
ee Actual Collatera Complet Related
disclosur e of guarante guarante Term
provided date l (if any) ed or not party
e amount guarante e e (if any)
to
e
since
engage
of
Decemb contract
Fangda February 65431.4 Joint
93000 er 28 No No to 3 No Yes
Jianke 28 2023 8 liability
2023 years
upon
due of
debt
since
engage
of
contract
Fangda April 2 May 27 18715.6 Joint
24000 No No to 3 No Yes
Jianke 2024 2024 9 liability
years
upon
due of
debt
since
engage
of
Novemb contract
Fangda April 2 17933.0 Joint
30000 er 11 No No to 3 No Yes
Jianke 2024 7 liability
2024 years
upon
due of
debt
since
engage
of
Septemb contract
Fangda April 2 30880.5 Joint
50000 er 4 No No to 3 No Yes
Jianke 2024 1 liability
2024 years
upon
due of
debt
since
engage
of
contract
Fangda February October Joint
30000 15400 No No to 3 No Yes
Jianke 28 2023 20 2023 liability
years
upon
due of
debt
since
engage
of
Fangda February January Joint
39000 15436.8 No No contract No Yes
Jianke 28 2023 24 2024 liability
to 3
years
upon
76Annual Report 2024 of China Fangda Group Co. Ltd.
due of
debt
since
engage
of
contract
Fangda April 2 May 11 Joint
15000 15000 No No to 3 No Yes
Jianke 2024 2024 liability
years
upon
due of
debt
since
engage
of
Decemb contract
Fangda April 2 33926.9 Joint
48000 er 15 No No to 3 No Yes
Jianke 2024 5 liability
2024 years
upon
due of
debt
since
engage
of
Decemb contract
Fangda April 2 Joint
60000 er 19 59900 No No to 3 No Yes
Jianke 2024 liability
2024 years
upon
due of
debt
since
engage
of
contract
Fangda February August Joint
11400 1016.43 No No to 3 No Yes
Jianke 28 2023 16 2023 liability
years
upon
due of
debt
since
engage
of
Novemb contract
Fangda April 2 15827.1 Joint
20000 er 4 No No to 3 No Yes
Jianke 2024 5 liability
2024 years
upon
due of
debt
since
engage
of
contract
Fangda April 2 June 20 Joint
4000 4000 No No to 3 No Yes
Jianke 2024 2024 liability
years
upon
due of
debt
Fangda April 2 60000 June 27 22000 Joint No No since No Yes
77Annual Report 2024 of China Fangda Group Co. Ltd.
Jianke 2024 2024 liability engage
of
contract
to 3
years
upon
due of
debt
since
engage
of
Decemb contract
Fangda February Joint
30000 er 21 5000 No No to 3 No Yes
Jianke 28 2023 liability
2023 years
upon
due of
debt
since
engage
of
Decemb contract
Fangda April 2 Joint
20000 er 27 11000 No No to 3 No Yes
Jianke 2024 liability
2024 years
upon
due of
debt
since
engage
of
contract
Fangda April 2 June 27 Joint
36000 16438.3 No No to 3 No Yes
Zhiyuan 2024 2024 liability
years
upon
due of
debt
since
engage
of
contract
Fangda April 2 May 30 Joint
15000 2991.69 No No to 3 No Yes
Zhiyuan 2024 2024 liability
years
upon
due of
debt
since
engage
of
Novemb contract
Fangda April 2 Joint
20000 er 11 2485.95 No No to 3 No Yes
Zhiyuan 2024 liability
2024 years
upon
due of
debt
since
Septemb engage
Fangda April 2 Joint
15000 er 4 7824.13 No No of No Yes
Zhiyuan 2024 liability
2024 contract
to 3
78Annual Report 2024 of China Fangda Group Co. Ltd.
years
upon
due of
debt
since
engage
of
contract
Fangda April 2 May 11 Joint
10000 924.76 No No to 3 No Yes
Zhiyuan 2024 2024 liability
years
upon
due of
debt
since
engage
of
Decemb contract
Fangda April 2 Joint
18000 er 15 5728.31 No No to 3 No Yes
Zhiyuan 2024 liability
2024 years
upon
due of
debt
since
engage
of
Novemb contract
Fangda February Joint
15550 er 21 8574.38 No No to 3 No Yes
Zhiyuan 28 2023 liability
2023 years
upon
due of
debt
since
engage
of
Septemb contract
Fangda February Joint
10000 er 25 70.41 No No to 3 No Yes
Zhiyuan 28 2023 liability
2023 years
upon
due of
debt
since
engage
of
Decemb contract
Fangda February Joint
10000 er 21 No No to 3 No Yes
Zhiyuan 28 2023 liability
2023 years
upon
due of
debt
since
engage
of
contract
Fangda April 2 June 3 Joint
600 24.78 No No to 3 No Yes
Yunzhu 2024 2024 liability
years
upon
due of
debt
79Annual Report 2024 of China Fangda Group Co. Ltd.
since
engage
of
contract
Fangda April 2 May 7 Joint
1000 No No to 3 No Yes
Yunzhu 2024 2024 liability
years
upon
due of
debt
since
engage
of
contract
Fangda April 2 June 28 Joint
1000 1000 No No to 3 No Yes
Yunzhu 2024 2024 liability
years
upon
due of
debt
since
engage
of
Fangda Novemb contract
February Joint
New 8500 er 2 1844.24 No No to 3 No Yes
28 2023 liability
Material 2023 years
upon
due of
debt
since
engage
of
Fangda contract
April 2 July 8 Joint
New 10000 599.23 No No to 3 No Yes
2024 2024 liability
Material years
upon
due of
debt
since
engage
of
Decemb contract
Fangda February Joint
er 4 135000 66000 No No to 3 No Yes
Property 25 2020 liability
2019 years
upon
due of
debt
since
engage
of
contract
Fangda April 2 May 17 Joint
7000 4559.39 No No to 3 No Yes
Zhijian 2024 2024 liability
years
upon
due of
debt
Fangda since
Decemb
Intellige February Joint engage
er 23 30000 30000 No No No Yes
nt 22 2024 liability of
2023
Manufac contract
80Annual Report 2024 of China Fangda Group Co. Ltd.
turing to 3
years
upon
due of
debt
since
engage
of
Fangda
contract
Donggu April 2 August Joint
5000 2865.45 No No to 3 No Yes
an New 2024 26 2024 liability
years
Material
upon
due of
debt
From the
date of
issuance
of the
Decemb guarante
Fangda 31896.0 February 31896.0 Joint
er 23 No No e letter No Yes
Zhiyuan 2 17 2024 2 liability
2023 until the
completi
on of the
project
contract
From the
date of
issuance
of the
Decemb guarante
Fangda 24885.1 February 24885.1 Joint
er 23 No No e letter No Yes
Zhiyuan 6 17 2024 6 liability
2023 until the
completi
on of the
project
contract
Total of guarantee to Total of guarantee to
subsidiaries subsidiaries actually
469600.00586533.44
approved in the occurred in the
report term (B1) report term (B2)
Total of balance of
Total of guarantee to guarantee actually
subsidiaries provided to the
938831.18540180.29
approved as of the subsidiaries as of
report term (B3) end of report term
(B4)
Guarantee provided to subsidiaries
Actual
Guarant
Date of Guarante amount Type of Counter
ee Actual Collatera Complet Related
disclosur e of guarante guarante Term
provided date l (if any) ed or not party
e amount guarante e e (if any)
to
e
No
Total of guarantee provided by the Company (total of the above three)
Total of guarantee 469600.00 Total of guarantee 586533.44
approved in the occurred in the
81Annual Report 2024 of China Fangda Group Co. Ltd.
report term report term
(A1+B1+C1) (A2+B2+C2)
Total of guarantee Total of guarantee
approved as of end occurred as of the
938831.18540180.29
of report term end of report term
(A3+B3+C3) (A4+B4+C4)
Percentage of the total guarantee occurred
88.18%
(A4+B4+C4) on net asset of the Company
Including:
Guarantee provided directly or indirectly to
objects with over 70% of liability on asset 2865.45
ratio (E)
Amount of guarantee over 50% of the net
233890.09
asset (F)
Total of the above 3 (D+E+F) 233890.09
Note of compound guarantee
None
3. Entrusted cash capital management
(1) Wealth management
□Applicable□ Inapplicable
The Company made no trust investment in the report period
(2) Trusted loans
□Applicable□ Inapplicable
The Company borrowed no trust loan in the report period.
4. Other significant contract
□Applicable□ Inapplicable
The Company entered into no other significant contract in the report.XVI. Other material events
□Applicable□ Inapplicable
The Company had no other significant event to be explained in the report period.XVII. Material events of subsidiaries
□Applicable□ Inapplicable
82Annual Report 2024 of China Fangda Group Co. Ltd.
Chapter VII Changes in Share Capital and Shareholders
I. Changes in shares
1. Changes in shares
In share
Before the change Change (+-) After the change
Issued Transferre
Proportio Bonus Proportio
Quantity new d from Others Subtotal Quantity
n shares n
shares reserves
I. Shares
with trade
restriction 3861043 0.36% 0 0 0 0 0 3861043 0.36%
condition
s
1.
State-
owned
shares
2.
State-
owned
legal
person
shares
3.
Other
38610430.36%0000038610430.36%
domestic
shares
Inclu
ding:
Shares
held by
domestic
legal
persons
Dom
estic
natural 3861043 0.36% 0 0 0 0 0 3861043 0.36%
person
shares
4.
Shares
held by
foreign
investors
Inclu
ding:
Shares
held by
83Annual Report 2024 of China Fangda Group Co. Ltd.
foreign
legal
persons
Dom
estic
natural
person
shares
II.
10700131070013
Unrestrict 99.64% 0 0 0 0 0 99.64%
184184
ed shares
1.
Common 6758544 6758544
62.94%0000062.94%
shares in 29 29
RMB
2.
Foreign
39415873941587
shares in 36.70% 0 0 0 0 0 36.70%
5555
domestic
market
3.
Foreign
shares in
overseas
market
4.
Others
III. Total
10738741073874
of capital 100.00% 0 0 0 0 0 100.00%
227227
shares
Reasons
□ Applicable□ Inapplicable
Approval of the change
□ Applicable□ Inapplicable
Share transfer
□ Applicable□ Inapplicable
Impacts on financial indicators including basic and diluted earnings per share net assets per share attributable to common
shareholders of the Company in the most recent year and period
□ Applicable□ Inapplicable
Others that need to be disclosed as required by the securities supervisor
□ Applicable□ Inapplicable
2. Changes in conditional shares
□Applicable□ Inapplicable
84Annual Report 2024 of China Fangda Group Co. Ltd.
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
Total
shareholder
number of
s of
ordinary
Number of preferred Total number of
share
shareholder stocks of shareholders of preference
shareholder
s of which shares of which voting
s at the end
common voting rights resumed at the end
46403 of the 45957 0 0
shares at rights of the month before the
month
the end of recovered disclosure date of the
before the
the report in the annual report (if any) (see
disclosure
period report note 8)
date of the
period (if
annual
any) (note
report
8)
Shareholdings of shareholders holding more than 5% or the top 10 shareholders (excluding shares lent through refinancing)
Number of Pledge marking or
Amount of
shares held Change in freezing
Shareholdi shares
Name of Nature of at the end the Conditional
ng without
shareholder shareholder of the reporting shares
percentage sales Share
reporting period Quantity
restriction status
period
Shenzhen
Banglin Domestic
Technologi non-state 11933284 11933284 Inapplicabl
11.11%-00
es legal 6 6 e
Developme person
nt Co. Ltd.Shengjiu Foreign
11011627 11011627 Inapplicabl
Investment legal 10.25% - 0 0
6 6 e
Ltd. person
Domestic
Inapplicabl
Fang Wei natural 4.72% 50665439 6336900 0 50665439 0
e
person
85Annual Report 2024 of China Fangda Group Co. Ltd.
Domestic
Zhou Inapplicabl
natural 0.92% 9924210 -837000 0 9924210 0
Youming e
person
Domestic
Inapplicabl
Xu Zhe natural 0.63% 6760000 6110000 0 6760000 0
e
person
Domestic
Inapplicabl
Xu Lei natural 0.59% 6320000 5820000 0 6320000 0
e
person
Shenwan
Hongyuan
Foreign
Securities Inapplicabl
legal 0.51% 5470550 - 0 5470550 0
(Hong e
person
Kong) Co.Ltd.Domestic
Wu Inapplicabl
natural 0.49% 5233136 -152614 0 5233136 0
Xuandong e
person
Domestic
Xiong Inapplicabl
natural 0.48% 5110257 - 3832693 1277564 0
Jianming e
person
Domestic
Zhuang Inapplicabl
natural 0.47% 5005000 736000 0 5005000 0
Liangjin e
person
A strategic investor or
ordinary legal person
becomes the Top10 No
shareholder due a stock
issue.Notes to top ten Among the above shareholders Shenzhen Banglin Technology Development Co. Ltd. Shengjiu
shareholder relationship Investment Co. Ltd. and Xiong Jianming are persons acting in concert. The Company is not
or "action in concert" notified of other action-in-concert or related parties among the other holders.Description of the above
shareholders involved in
entrusted / entrusted No
voting right and waiver of
voting right
Special instructions on the
existence of special
repurchase account among No
the top 10 shareholders (if
any)
Shareholding status of the top 10 shareholders with unrestricted shares (excluding shares lent through margin financing and
securities lending and shares locked by senior management)
Category of shares
Name of shareholder Amount of shares without sales restriction
Category of shares Quantity
Shenzhen Banglin
Technologies 119332846 RMB common shares 119332846
Development Co. Ltd.Domestically listed
Shengjiu Investment Ltd. 110116276 110116276
foreign shares
Fang Wei 50665439 RMB common shares 50665439
Zhou Youming 9924210 RMB common shares 9924210
Xu Zhe 6760000 RMB common shares 6760000
Xu Lei 6320000 RMB common shares 6320000
86Annual Report 2024 of China Fangda Group Co. Ltd.
Shenwan Hongyuan
Domestically listed
Securities (Hong Kong) 5470550 5470550
foreign shares
Co. Ltd.Wu Xuandong 5233136 RMB common shares 5233136
Zhuang Liangjin 5005000 RMB common shares 5005000
Qu Chunlin 4444000 RMB common shares 4444000
No action-in-concert or
related parties among the
top10 unconditional Among the above shareholders Shenzhen Banglin Technology Development Co. Ltd. Shengjiu
shareholders and between Investment Co. Ltd. and Xiong Jianming are persons acting in concert. The Company is not
the top10 unconditional notified of other action-in-concert or related parties among the other holders.shareholders and the
top10 shareholders
Xu Lei holds 3660000 shares of the Company through a customer credit transaction guarantee
securities account with Guolian Securities Co. Ltd.Xu Lei holds 3300000 shares of the Company through a customer credit transaction guarantee
Top-10 common share
securities account with Guolian Securities Co. Ltd.shareholders participating
Wu Xuandong holds 5205136 stocks of the Company through the Huaxi Securities customer credit
in margin trade
transaction guarantee securities account;
Zhuang Liangjin holds 5005000 shares of the Company through a customer credit transaction
guarantee securities account with Great Wall Securities Co. Ltd.The situation regarding the lending of shares by shareholders holding more than 5% the top 10 shareholders and the top 10
shareholders of unrestricted circulating shares participating in the margin financing and securities lending business.□ Applicable□ Inapplicable
Changes occurred compared to the previous period due to the lending/returning of shares by the top 10 shareholders and the top 10
shareholders of unrestricted circulating shares for margin financing and securities lending reasons.□ Applicable□ Inapplicable
Agreed re-purchasing by the Company's top 10 shareholders of common shares and top 10 shareholders of unconditional common
shares in the report period
□ Yes□ No
No agreed re-purchasing by the Company's top 10 shareholders of common shares and top 10 shareholders of unconditional
common shares in the report period
2. Profile of the controlling shareholders
Shareholder nature: natural person holding
Type of shareholder: legal person
Legal
Name of controlling representative/
Date of Establishment Organization code Main business
shareholder responsible
person
Industrial investment
Shenzhen Banglin developing of electronic
Technologies Chen Jinwu June 7 2001 914403007298400552 products technical consulting
Development Co. Ltd. domestic commerce material
trading
Stock ownership of
other domestic and
overseas listed No
company controlled or
whose shares are held
by controlling
87Annual Report 2024 of China Fangda Group Co. Ltd.
shareholders
Changes in the controlling shareholder in the reporting period
□ Applicable□ Inapplicable
No change in the controlling shareholder in the report period
3. Actual controller and persons acting in concert
Nature of actual controller: domestic natural person
Type of actual controller: natural person
Relationship with the actual Right of residence in another
Name of substantial controller Nationality
controller country or region
Xiong Jianming Himself Chinese Yes
Job and position Served as Chairman of the Company.Profiles of domestic and
overseas listed companies in
The controller held no share in other listed companies in the last ten years.which the controller held
shares
Change in the actual controller in the report period
□ Applicable□ Inapplicable
No change in the actual shareholder in the report period
7. Chart of the controlling relationship
Controlling over the Company by the substantial controller through trust or other asset management
□ Applicable□ Inapplicable
4. The cumulative number of Pledged Shares of the Company's controlling shareholder or the largest
shareholder and its concerted actors accounts for 80% of the Company's shares
□Applicable□ Inapplicable
5. Other legal person shareholders with over 10% of total shares
□Applicable□ Inapplicable
6. Conditional decrease of shareholding by controlling shareholder actual controller reorganizer and
other entities
□Applicable□ Inapplicable
88Annual Report 2024 of China Fangda Group Co. Ltd.
IV. Specific implementation of share repurchase in the reporting period
Progress in the implementation of share repurchase
□ Applicable□ Inapplicable
Progress in the implementation of the reduction of shareholding shares by means of centralized bidding
□ Applicable□ Inapplicable
89Annual Report 2024 of China Fangda Group Co. Ltd.
Chapter VIII Preferred Shares
□Applicable□ Inapplicable
The Company had no preferred share in the report period.Chapter IX Information about the Company's Securities
□Applicable□ Inapplicable
90Annual Report 2024 of China Fangda Group Co. Ltd.
Chapter X Financial Statements
I. Auditor's report
Type Standard opinion auditor's report
Issued on April 18 2025
Auditor RSM Thornton (limited liability partnership)
Report No. RSM [2025] No.510Z0004
CPA names Zhou Junchao Liu Gen Hu Gaosheng
Auditors' Report
RSM [2025] No.510Z0004
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 2024 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 2024.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 2024 and the business performance and cash flow of year 2024.
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. KeyAudit Matters
91Annual Report 2024 of China Fangda Group Co. Ltd.
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 25 Note V 45 and Note XV 2 of the financial statements.
1. Description
In 2024 the operating revenue of Fangda Group is RMB4.424 billion of which the revenue of curtain wall and metro
platform screen door accounts for 94.23% 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.
92Annual Report 2024 of China Fangda Group Co. Ltd.
(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 16 Note V 15 (2) Note V 53 and Note XI of the financial
statements.
1. Description
As of Tuesday December 31 2024 the book balance of the investment real estate of Fangda group which adopts the fair
value model for subsequent measurement is RMB5.835 billion accounting for 43.05% of the total assets. The income from
changes in fair value realized in the current period is RMB-18000000 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.
93Annual Report 2024 of China Fangda Group Co. Ltd.
(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 10 Note V 4 Note V 9 and Note V 22 of the financial
statements.
1. Description
As of December 31 2024 the total amount of accounts receivable of the Company was RMB1.498 billion the provision for
bad debts accrued was RMB374 million the total amount of contract assets of the Company was RMB2.619 billion the provision
for impairment accrued was RMB222 million and the total book value of accounts receivable and contract assets accounted for
25.97% 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) Review the relevant considerations and objective evidence of the management's credit risk assessment of accounts
receivable and contract assets and evaluate whether the management has properly identified the credit risk characteristics of
various accounts receivable.
(3) Review the accrual process of bad debt provision for accounts receivable and impairment provision for contract assets of
the management including: * for accounts receivable and contract assets that measure expected credit loss based on portfolio
evaluate the rationality of the management's division of portfolio according to credit risk characteristics; Check the measurement
model of expected credit loss and evaluate the rationality of major assumptions and key parameters in the model; Obtain the
comparison table between the aging of accounts receivable and the expected credit loss rate for the whole duration prepared by the
management and test the accuracy and integrity of the data used by the management and whether the calculation of bad debt
reserves is accurate; * For accounts receivable and contract assets with individual provision for expected credit loss review the
accuracy and rationality of the information and relevant assumptions used by the management in the test process; Check the
accuracy of the provision for impairment of accounts receivable and contract assets with long aging accounts receivable and
94Annual Report 2024 of China Fangda Group Co. Ltd.
contract assets involving litigation matters.
(4) According to the characteristics and nature of customer transactions select samples to implement the accounts
receivable confirmation procedure and check the collection after the period and evaluate the rationality of the provision for bad
debts of accounts receivable.
4. Other information
The management of Fangda Group (hereinafter referred to as management) is responsible for other information. The other
information includes the information covered in Fangda Group's 2024 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
95Annual Report 2024 of China Fangda Group Co. Ltd.
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
96Annual Report 2024 of China Fangda Group Co. Ltd.
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.(This page has no text. It is the signature and stamp page of audit report No. [2025]510Z0004 of China Fangda Group Co. Ltd.）
RSM China CPA:
(limited liability partnership) Zhou Junchao (Project Partner)
CPA:
Liu Gen
97Annual Report 2024 of China Fangda Group Co. Ltd.
Beijing China CPA:
Hu Gaosheng
April 18 2025
II. Financial statements
Unit for statements in notes to financial statements: RMB yuan
1. Consolidated Balance Sheet
Prepared by: China Fangda Group Co. Ltd.December 31 2024
In RMB
Item Closing balance Opening balance
Current asset:
Monetary capital 1491777341.84 1425151116.24
Settlement provision
Outgoing call loan
Transactional financial assets
Derivative financial assets 173737.06
Notes receivable 73887694.24 47372881.27
Account receivable 1123506196.98 911486914.19
Receivable financing 4568000.10 6979428.14
Prepayment 23355036.11 33976569.36
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other receivables 168322524.80 145113323.33
Including: interest receivable
Dividend receivable
Repurchasing of financial assets
Inventory 705666408.74 755624486.51
Including: data resources
Contract assets 2247698479.96 2488429802.41
98Annual Report 2024 of China Fangda Group Co. Ltd.
Assets held for sales
Non-current assets due in 1 year 327120273.54
Other current assets 307777143.14 248401322.80
Total current assets 6146558825.91 6389829854.85
Non-current assets:
Loan and advancement provided
Debt investment
Other debt investment
Long-term receivables
Long-term share equity investment 56690973.97 54757017.40
Investment in other equity tools
Other non-current financial assets 6519740.17 7455617.17
Investment real estate 5835036098.20 5756809168.26
in fixed assets 940894344.39 620828178.38
Construction in process 7265104.44 109414347.33
Productive biological assets
Gas & petrol
Use right assets 15683121.04 20776829.58
Intangible assets 124052394.79 140073209.88
Including: data resources
R&D expense
Including: data resources
Goodwill
Long-term amortizable expenses 4041025.70 6749314.04
Deferred income tax assets 205986926.71 182858549.07
Other non-current assets 212658669.89 86799770.90
Total of non-current assets 7408828399.30 6986522002.01
Total of assets 13555387225.21 13376351856.86
Current liabilities
Short-term loans 1663696422.48 2208055039.21
Loans from Central Bank
Call loan received
Transactional financial liabilities
Derivative financial liabilities 1520625.00
Notes payable 681188127.97 868886946.79
Account payable 2146594890.57 1972293782.27
Prepayment received 1513398.39 1432885.03
Contract liabilities 268594041.26 198164209.47
Selling of repurchased financial assets
Deposit received and held for others
Entrusted trading of securities
Entrusted selling of securities
99Annual Report 2024 of China Fangda Group Co. Ltd.
Employees' wage payable 76243647.97 74063112.26
Taxes payable 48847117.19 42375068.55
Other payables 120918002.02 117581764.15
Including: interest payable
Dividend payable
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liabilities due in 1 year 131374661.05 64135136.46
Other current liabilities 50835559.67 53524655.05
Total current liabilities 5191326493.57 5600512599.24
Non-current liabilities:
Insurance contract provision
Long-term loans 1137000000.00 660000000.00
Bond payable
Including: preferred stock
Perpetual bond
Lease liabilities 10652607.48 6675870.04
Long-term payable 48400000.00
Long-term employees' wage payable
Anticipated liabilities 1286391.72 4842411.47
Deferred earning 10669612.13 8978678.72
Deferred income tax liabilities 1030341141.92 1012146459.12
Other non-current liabilities
Total of non-current liabilities 2189949753.25 1741043419.35
Total liabilities 7381276246.82 7341556018.59
Owner's equity:
Share capital 1073874227.00 1073874227.00
Other equity tools
Including: preferred stock
Perpetual bond
Capital reserves 4357948.33 11459588.40
Less: Shares in stock
Other miscellaneous income 158405014.52 23121870.79
Special reserves
Surplus reserve 83974716.22 79324940.43
Common risk provisions
Retained profit 4805192000.28 4772359940.45
Total of owner's equity belong to the
6125803906.355960140567.07
parent company
Minor shareholders' equity 48307072.04 74655271.20
Total of owners' equity 6174110978.39 6034795838.27
Total of liabilities and owner's interest 13555387225.21 13376351856.86
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua
100Annual Report 2024 of China Fangda Group Co. Ltd.
2. Balance Sheet of the Parent Company
In RMB
Item Closing balance Opening balance
Current asset:
Monetary capital 45751906.05 45926194.32
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 2885125.35 683592.53
Receivable financing
Prepayment 145287.27 324209.77
Other receivables 1622103166.85 1684718397.92
Including: interest receivable
Dividend receivable
Inventory
Including: data resources
Contract assets
Assets held for sales
Non-current assets due in 1 year
Other current assets 2081838.29 1849530.81
Total current assets 1672967323.81 1733501925.35
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term share equity investment 1657062530.00 1526831253.00
Investment in other equity tools
Other non-current financial assets 30000001.00 30000001.00
Investment real estate 380644350.00 333236768.00
in fixed assets 46688469.68 63599689.10
Construction in process
Productive biological assets
Gas & petrol
Use right assets 8030919.38 8346277.85
Intangible assets 1200848.82 852064.55
Including: data resources
R&D expense
Including: data resources
Goodwill
Long-term amortizable expenses 285478.52 472845.61
Deferred income tax assets
Other non-current assets
101Annual Report 2024 of China Fangda Group Co. Ltd.
Total of non-current assets 2123912597.40 1963338899.11
Total of assets 3796879921.21 3696840824.46
Current liabilities
Short-term loans 300270416.67
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 873640.82 804004.81
Prepayment received 749684.15 736644.20
Contract liabilities
Employees' wage payable 2834942.51 2781026.66
Taxes payable 286140.09 364147.97
Other payables 1437682555.06 1041696906.24
Including: interest payable
Dividend payable
Liabilities held for sales
Non-current liabilities due in 1 year 3531740.50 3936569.69
Other current liabilities 164239.72 41741.14
Total current liabilities 1446122942.85 1350631457.38
Non-current liabilities:
Long-term loans
Bond payable
Including: preferred stock
Perpetual bond
Lease liabilities 4614693.40 5464762.02
Long-term payable
Long-term employees' wage payable
Anticipated liabilities
Deferred earning
Deferred income tax liabilities 42909713.11 37279049.28
Other non-current liabilities
Total of non-current liabilities 47524406.51 42743811.30
Total liabilities 1493647349.36 1393375268.68
Owner's equity:
Share capital 1073874227.00 1073874227.00
Other equity tools
Including: preferred stock
Perpetual bond
Capital reserves 360835.52 360835.52
Less: Shares in stock
Other miscellaneous income 39731740.46 -10082945.37
Special reserves
Surplus reserve 83974716.22 79324940.43
Retained profit 1105291052.65 1159988498.20
Total of owners' equity 2303232571.85 2303465555.78
102Annual Report 2024 of China Fangda Group Co. Ltd.
Total of liabilities and owner's interest 3796879921.21 3696840824.46
3. Consolidated Income Statement
In RMB
Item 2024 2023
1. Total revenue 4424224197.71 4292204716.01
Incl. Business income 4424224197.71 4292204716.01
Interest income
Insurance fee earned
Fee and commission received
2. Total business cost 4114643580.92 3931058087.22
Incl. Business cost 3588142296.48 3412122022.80
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 43364391.34 40354397.22
Sales expense 55140153.13 51009165.29
Administrative expense 191667435.20 174674755.81
R&D cost 171031371.73 180070801.25
Financial expenses 65297933.04 72826944.85
Including: interest cost 60377020.35 87186232.75
Interest income 19230549.61 29144115.88
Add: other gains 19683263.58 17113408.26
Investment gains ("-" for loss) -4547362.60 -4562134.58
Incl. Investment gains from affiliates and joint
-70043.43-212024.74
ventures
Financial assets derecognized as a result of
-2538217.26-4656380.30
amortized cost
Exchange gains ("-" for loss)
Net open hedge gains ("-" for loss)
Gains from change of fair value ("-" for loss) -18394198.42 -28534518.77
Credit impairment ("-" for loss) -110686852.25 -35051664.32
Investment impairment loss ("-" for loss) -35260579.49 6020287.93
Investment gains ("-" for loss) -500192.81 381572.12
3. Operational profit ("-" for loss) 159874694.80 316513579.43
Plus: non-operational income 1712412.29 2639291.21
Less: non-operational expenditure 2226292.50 1376476.43
4. Gross profit ("-" for loss) 159360814.59 317776394.21
103Annual Report 2024 of China Fangda Group Co. Ltd.
Less: Income tax expenses 13192524.27 40817495.88
5. Net profit ("-" for net loss) 146168290.32 276958898.33
(1) By operating consistency
1. Net profit from continuous operation ("-" for net loss) 146168290.32 276958898.33
2. Net profit from discontinuous operation ("-" for net loss)
(2) By ownership
1. Net profit attributable to the shareholders of the parent
144813705.53272758249.50
company
2. Minor shareholders' equity 1354584.79 4200648.83
6. After-tax net amount of other misc. incomes 113857440.93 -8854510.96
After-tax net amount of other misc. incomes attributed to
113861211.98-8864846.00
parent's owner
(1) Other misc. incomes that cannot be re-classified into
-8976730.40
gain and loss
1. Re-measure the change in the defined benefit plan
2. Other comprehensive income that cannot be
transferred to profit or loss under the equity method
3. Fair value change of investment in other equity tools -8976730.40
4. Fair value change of the Company's credit risk
5. Others
(2) Other misc. incomes that will be re-classified into gain
113861211.98111884.40
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 -1440207.76 -273758.04
6. Translation difference of foreign exchange statement -769741.24 385642.44
7. Others 116071160.98
After-tax net of other misc. income attributed to minority
-3771.0510335.04
shareholders
7. Total of misc. incomes 260025731.25 268104387.37
Total of misc. incomes attributable to the owners of the parent
258674917.51263893403.50
company
Total misc. gains attributable to the minor shareholders 1350813.74 4210983.87
8. Earnings per share
(1) Basic earnings per share 0.13 0.25
(2) Diluted earnings per share 0.13 0.25
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 2024 2023
1. Turnover 22532419.32 24692199.04
Less: Operation cost 81137.33 26289.08
Taxes and surcharges 1424024.13 1317388.51
Sales expense
Administrative expense 32460638.60 30558951.47
104Annual Report 2024 of China Fangda Group Co. Ltd.
R&D cost
Financial expenses 4841621.43 8388228.10
Including: interest cost 4405563.35 9288176.00
Interest income 260151.97 831166.04
Add: other gains 108256.72 117077.52
Investment gains ("-" for loss) 72929550.62
Incl. Investment gains from affiliates and joint
ventures
Financial assets derecognized as a result of
amortized cost ("-" for loss)
Net open hedge gains ("-" for loss)
Gains from change of fair value ("-" for loss) -4092950.00
Credit impairment ("-" for loss) -238257.79 360899.21
Investment impairment loss ("-" for loss)
Investment gains ("-" for loss) 1053415.23
2. Operational profit ("-" for loss) 53485012.61 -15120681.39
Plus: non-operational income 5025.67 44168.07
Less: non-operational expenditure 24170.61 121511.80
3. Gross profit ("-" for loss) 53465867.67 -15198025.12
Less: Income tax expenses -3818332.48 -3431141.95
4. Net profit ("-" for net loss) 57284200.15 -11766883.17
(1) Net profit from continuous operation ("-" for net loss) 57284200.15 -11766883.17
(2) Net profit from discontinuous operation ("-" for net loss)
5. After-tax net amount of other misc. incomes 28392754.08 -8976730.40
(1) Other misc. incomes that cannot be re-classified into
-8976730.40
gain and loss
1. Re-measure the change in the defined benefit plan
2. Other comprehensive income that cannot be
transferred to profit or loss under the equity method
3. Fair value change of investment in other equity tools -8976730.40
4. Fair value change of the Company's credit risk
5. Others
(2) Other misc. incomes that will be re-classified into gain
28392754.08
and loss
1. Other comprehensive income that can be transferred
to profit or loss under the equity method
2. Fair value change of other debt investment
3. Gains and losses from changes in fair value of
available-for-sale financial assets
4. Other credit investment credit impairment provisions
5. Cash flow hedge reserve
6. Translation difference of foreign exchange statement
7. Others 28392754.08
6. Total of misc. incomes 85676954.23 -20743613.57
7. Earnings per share
(1) Basic earnings per share
(2) Diluted earnings per share
105Annual Report 2024 of China Fangda Group Co. Ltd.
5. Consolidated Cash Flow Statement
In RMB
Item 2024 2023
1. Net cash flow from business operations:
Cash received from sales of products and providing of
4480307796.774203440613.14
services
Net increase of customer deposits and capital kept for brother
company
Net increase of loans from central bank
Net increase of inter-bank loans from other financial bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Cash received as interest processing fee and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Net cash received from trading securities
Tax refunded 20223216.89 8419916.54
Other cash received from business operation 115024150.76 106386664.36
Sub-total of cash inflow from business operations 4615555164.42 4318247194.04
Cash paid for purchasing products and services 3476800439.66 3045048069.68
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 500142274.75 459342426.54
Taxes paid 187032846.31 245852193.38
Other cash paid for business activities 180685510.27 268262302.36
Sub-total of cash outflow from business operations 4344661070.99 4018504991.96
Cash flow generated by business operations net 270894093.43 299742202.08
2. Cash flow generated by investment:
Cash received from investment recovery 1785649.27
Cash received as investment profit 214188.46
Net cash retrieved from disposal of fixed assets intangible
8161249.68375640.16
assets and other long-term assets
Net cash received from disposal of subsidiaries or other
operational units
Other investment-related cash received
Sub-total of cash inflow generated from investment 10161087.41 375640.16
Cash paid for construction of fixed assets intangible assets
229651090.29118890749.97
and other long-term assets
Cash paid as investment 27416773.30 0.00
Net increase of loan against pledge
Net cash paid for acquiring subsidiaries and other operational
units
Other cash paid for investment 1787676.30 50000.00
Subtotal of cash outflows 258855539.89 118940749.97
Cash flow generated by investment activities net -248694452.48 -118565109.81
3. Cash flow generated by financing activities:
106Annual Report 2024 of China Fangda Group Co. Ltd.
Cash received from investment 14873.62
Incl. Cash received from investment attracted by subsidiaries
14873.62
from minority shareholders
Cash received from borrowed loans 3503675536.37 2876228738.64
Other cash received from financing activities 463600944.44
Subtotal of cash inflow from financing activities 3967291354.43 2876228738.64
Cash paid to repay debts 3451800000.00 2647603587.53
Cash paid as dividend profit or interests 167473899.50 141883286.28
Incl. Dividend and profit paid by subsidiaries to minority
6962732.02
shareholders
Other cash paid for financing activities 119400311.19 274354261.52
Subtotal of cash outflow from financing activities 3738674210.69 3063841135.33
Net cash flow generated by financing activities 228617143.74 -187612396.69
4. Influence of exchange rate changes on cash and cash
1247313.232418493.78
equivalents
5. Net increase in cash and cash equivalents 252064097.92 -4016810.64
Plus: Balance of cash and cash equivalents at the beginning of
779661118.42783677929.06
term
6. Balance of cash and cash equivalents at the end of the period 1031725216.34 779661118.42
6. Cash Flow Statement of the Parent Company
In RMB
Item 2024 2023
1. Net cash flow from business operations:
Cash received from sales of products and providing of
23297859.1717959740.25
services
Tax refunded 278140.90
Other cash received from business operation 1444921260.13 5000885248.92
Sub-total of cash inflow from business operations 1468219119.30 5019123130.07
Cash paid for purchasing products and services 3898051.28 4266205.51
Cash paid to and for the staff 17406198.35 18497935.21
Taxes paid 2519884.87 2566398.39
Other cash paid for business activities 991774056.35 4903847461.83
Sub-total of cash outflow from business operations 1015598190.85 4929178000.94
Cash flow generated by business operations net 452620928.45 89945129.13
2. Cash flow generated by investment:
Cash received from investment recovery 235323000.00
Cash received as investment profit 72929550.62
Net cash retrieved from disposal of fixed assets intangible
assets and other long-term assets
Net cash received from disposal of subsidiaries or other
operational units
Other investment-related cash received
Sub-total of cash inflow generated from investment 308252550.62
Cash paid for construction of fixed assets intangible assets
508802.14285589.76
and other long-term assets
Cash paid as investment 365554277.00 69500000.00
Net cash paid for acquiring subsidiaries and other operational
units
Other cash paid for investment
Subtotal of cash outflows 366063079.14 69785589.76
Cash flow generated by investment activities net -57810528.52 -69785589.76
3. Cash flow generated by financing activities:
Cash received from investment
107Annual Report 2024 of China Fangda Group Co. Ltd.
Cash received from borrowed loans 300000000.00
Other cash received from financing activities
Subtotal of cash inflow from financing activities 300000000.00
Cash paid to repay debts 300000000.00 300000000.00
Cash paid as dividend profit or interests 90940972.34 62021628.02
Other cash paid for financing activities 4061076.00
Subtotal of cash outflow from financing activities 395002048.34 362021628.02
Net cash flow generated by financing activities -395002048.34 -62021628.02
4. Influence of exchange rate changes on cash and cash
17360.1477994.33
equivalents
5. Net increase in cash and cash equivalents -174288.27 -41784094.32
Plus: Balance of cash and cash equivalents at the beginning of
45676194.3287460288.64
term
6. Balance of cash and cash equivalents at the end of the period 45501906.05 45676194.32
7. Statement of Change in Owners' Equity (Consolidated)
Amount of the Current Term
In RMB
2024
Owners' Equity Attributable to the Parent Company
Other equity tools Othe Min Total
r Com or of
Item Shar Capi Less: Spec Surp Retai sharemisc mon own
e Prefe Perp tal Shar ial lus ned Othe Subt hold
Othe ellan risk ers'capit rred etual reser es in reser reser profi rs otal
ers'
al rs
eous provi equit
share bond ves stock ves ve t
equit
inco sions y y
me
1.
Bala
nce
107114231793477596746603
at
387595218249235014552479
the
42288.470.740.499405671.2583
end
7.000930.457.0708.27
of
last
year
2.
Bala
nce
at
107114231793477596746603
the
387595218249235014552479
begi
42288.470.740.499405671.2583
nnin
7.000930.457.0708.27
g of
curre
nt
year
3.-
Chan - 135 328 165 139464 263
ge 710 283 320 663 315977 481
amo 164 143. 59.8 339. 140.5.79 99.1
unt 0.07 73 3 28 126
in
108Annual Report 2024 of China Fangda Group Co. Ltd.
the
curre
nt
perio
d ("-
" for
decr
ease)
(1)
Total 113 144 258 260
135
of 861 813 674 025
081
misc. 211. 705. 917. 731.
3.74
inco 98 53 51 25
mes
(2)
Inve
stme
nt or - -
--
decr 207 278
710710
easin 362 379
164164
g of 80.8 20.9
0.070.07
capit 8 5
al by
own
ers
1.
Com
mon
--
share
207207
s
362362
inves
80.880.8
ted
88
by
own
ers
2.
Capi
tal
contr
ibute
d by
other
equit
y
instr
ume
nt
hold
ers
3.
Amo
unt
of
share
s
paid
109Annual Report 2024 of China Fangda Group Co. Ltd.
and
acco
unte
d as
own
ers'
equit
y
---
4.
710710710
Othe
164164164
rs
0.070.070.07
(3)---
-
Profi 572 916 859 928
696
t 842 383 099 726
273
allot 0.02 58.1 38.1 70.1
2.02
ment 8 6 8
1.
Prov
ision -
572
of 572
842
surpl 842
0.02
us 0.02
reser
ves
2.
Distr
ibuti
---
on to -
859859928
own 696
099099726
ers 273
38.138.170.1
(or 2.02
668
share
hold
ers)
(4)
Inter
nal
-
carry 214 -
203
-over 219 107
432
of 31.7 864
87.5
own 5 4.23
2
ers'
equit
y
1.
Othe
-
r 214 -
203
misc 219 107
432
ellan 31.7 864
87.5
eous 5 4.23
2
inco
me
(5)
Spec
110Annual Report 2024 of China Fangda Group Co. Ltd.
ial
reser
ves
(6)
Othe
rs
4.
Bala
nce
at 107 158 839 480 612 483 617
435
the 387 405 747 519 580 070 411
0.000.000.007940.000.00
end 422 014. 16.2 200 390 72.0 097
8.33
of 7.00 52 2 0.28 6.35 4 8.39
this
perio
d
Amount of the Previous Term
In RMB
2023
Owners' Equity Attributable to the Parent Company
Min
Other equity tools Othe Totalor
r Com of
Item Shar Capi Less: Spec Surp Retai sharemisc mon own
e Prefe Perp tal Shar ial lus ned Othe Subt hold
Othe ellan risk ers'capit rred etual reser es in reser reser profi rs otal ers'
al rs
eous provi equit
share bond ves stock ves ve t equitinco sions yy
me
1.
Bala
nce
107114319793455574704582
at
387595867249329994442038
the
42288.416.740.454008787.3516
end
7.000932.304.9232.25
of
last
year
2.
Bala
nce
at
107114319793455574704582
the
387595867249329994442038
begi
42288.416.740.454008787.3516
nnin
7.000932.304.9232.25
g of
curre
nt
year
3.
Chan - 219 210 214
ge 421886 064 199 410
amo 098484 538. 692. 676.unt 3.876.00 15 15 02
in
the
111Annual Report 2024 of China Fangda Group Co. Ltd.
curre
nt
perio
d ("-
" for
decr
ease)
(1)
Total - 272 263 268
421
of 886 758 893 104
098
misc. 484 249. 403. 387.
3.87
inco 6.00 50 50 37
mes
(2)
Inve
stme
nt or
decr
easin
g of
capit
al by
own
ers
(3)---
Profi 536 536 536
t 937 937 937
allot 11.3 11.3 11.3
ment 5 5 5
1.
Prov
ision
of
surpl
us
reser
ves
2.
Distr
ibuti
---
on to
536536536
own
937937937
ers
11.311.311.3
(or
555
share
hold
ers)
(4)
Inter
nal
carry
-over
of
own
ers'
equit
112Annual Report 2024 of China Fangda Group Co. Ltd.
y
(5)
Spec
ial
reser
ves
(6)
Othe
rs
4.
Bala
nce
at 107 114 231 793 477 596 746 603
the 387 595 218 249 235 014 552 479
end 422 88.4 70.7 40.4 994 056 71.2 583
of 7.00 0 9 3 0.45 7.07 0 8.27
this
perio
d
8. Statement of Change in Owners' Equity (Parent Company)
Amount of the Current Term
In RMB
2024
Other equity tools Other
Less: Specia Total
Item Capital miscell Surplu RetainShare Preferr Perpet Shares l ofreserve aneous s ed Others
capital ed ual Others in reserve ownerss incom reserve profit
share bond stock s ' equitye
1.
Balanc -
10737932411592303
e at the 36083 10082
87422940.49884946555
end of 5.52 945.3
7.0038.205.78
last 7
year
2.
Balanc
-
e at the 1073 79324 1159 2303
3608310082
beginn 87422 940.4 98849 46555
5.52945.3
ing of 7.00 3 8.20 5.78
7
current
year
3.
Chang
e
amoun -
49814-
t in the 4649 54697
685.823298
current 775.79 445.5
33.93
period 5
("-" for
decrea
se)
113Annual Report 2024 of China Fangda Group Co. Ltd.
(1)
Total
283925728485676
of
754.0200.1954.2
misc.
853
incom
es
(2)
Invest
ment
or
decrea
sing of
capital
by
owners
(3)--
Profit 5728 91638 85909
allotm 420.02 358.1 938.1
ent 8 6
1.
Provisi
-
on of 5728
5728
surplus 420.02
420.02
reserve
s
2.
Distrib
ution - -
to 85909 85909
owners 938.1 938.1
(or 6 6
shareh
olders)
(4)
Interna
-
l carry- 21421 -
20343
over of 931.7 1078
287.5
owners 5 644.23
2
'
equity
1.
Other -
21421-
miscell 20343
931.70.001078
aneous 287.5
5644.23
incom 2
e
(5)
Specia
l
reserve
s
(6)
Others
4.107336083397318397411052303
114Annual Report 2024 of China Fangda Group Co. Ltd.
Balanc 87422 5.52 740.4 716.2 29105 23257
e at the 7.00 6 2 2.65 1.85
end of
this
period
Amount of the Previous Term
In RMB
2023
Other equity tools Other
Less: Specia Total
Item Capital miscell Surplu RetainShare Preferr Perpet Shares l ofreserve aneous s ed Others
capital ed ual Others in reserve ownerss incom reserve profit
share bond stock s ' equitye
1.
Balanc
1073-7932412252377
e at the 36083
874221106940.44490990288
end of 5.52
7.00214.9732.720.70
last
year
2.
Balanc
e at the 1073 - 79324 1225 2377
36083
beginn 87422 1106 940.4 44909 90288
5.52
ing of 7.00 214.97 3 2.72 0.70
current
year
3.
Chang
e
amoun - -
-
t in the 65460 74437
8976
current 594.5 324.9
730.40
period 2 2
("-" for
decrea
se)
(1)
Total - -
-
of 11766 20743
8976
misc. 883.1 613.5
730.40
incom 7 7
es
(2)
Invest
ment
or
decrea
sing of
capital
by
owners
(3)--
Profit 53693 53693
allotm 711.3 711.3
115Annual Report 2024 of China Fangda Group Co. Ltd.
ent 5 5
1.
Provisi
on of
surplus
reserve
s
2.
Distrib
ution - -
to 53693 53693
owners 711.3 711.3
(or 5 5
shareh
olders)
(4)
Interna
l carry-
over of
owners
'
equity
(5)
Specia
l
reserve
s
(6)
Others
4.
Balanc -
10737932411592303
e at the 36083 10082
87422940.49884946555
end of 5.52 945.3
7.0038.205.78
this 7
period
III. General Information
China Fangda Group Co. Ltd. (the "Company" or the "Group") is a joint stock company registered in Shenzhen
Guangdong and was approved by the Government of Shenzhen with Document 深府办函 (1995) 194号 and was founded on the
basis of Shenzhen Fangda Construction Material Co. Ltd. by way of share issuing in October 1995. The unified social credit code
is: 91440300192448589C; registered address: Fangda Technology Building Keji South 12th Road South District High-tech
Industrial Park Nanshan District Shenzhen. Mr. Xiong Jianming is the legal representative.The Company issued foreign currency shares (B shares) and local currency shares (A shares) and listed in November 1995
and April 1996 respectively in Shenzhen Stock Exchange. The Company received the Reply to the Non-public Share Issuance of
Fangda China Group Co. Ltd. (CSRC License [2016] No.825) to allow the Company to conduct non-public issuance of
116Annual Report 2024 of China Fangda Group Co. Ltd.
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 RMB 1183642254.00. The Company
repurchased and cancelled 28160568.00 B shares in August 2018 32097497.00 B shares in January 2019 35105238.00 B
shares in May 2020 14404724.00 B shares in April 2021 and cancelled in April 2021. The existing registered capital is
RMB1073874227.00 yuan.The Company has established the corporate governance structure of the General Meeting of Shareholders the Board of
Directors and the Board of Supervisors. At present it has set up the President's Office the Administration Department the Human
Resources Department the Enterprise Management Department the Finance Department the Audit and Supervision Department
the Securities Department the Legal Department the Information Management Department the Technology Innovation
Department the Development Planning Department and other departments and has Shenzhen Fangda Construction Technology
Group Co. Ltd. (hereinafter referred to as Fangda Construction Technology Co. Ltd.) Fangda Zhiyuan Technology Co. Ltd.(hereinafter referred to as Fangda Zhiyuan Technology Co. Ltd.) Fangda Jiangxi New Materials Co. Ltd. Fangda Real Estate
Co. Ltd. Fangda New Energy Co. Ltd. and other subsidiaries.The business nature and main business activities of the Company and its subsidiaries include: (1) curtain wall division
production and sales of curtain wall materials design production and installation of building curtain walls and curtain wall testing
and maintenance services; (2) Rail transit branch assembly and processing of subway screen doors screen door detection and
maintenance services; (3) The real estate division is engaged in real estate development operation and property management on
the land that has legally obtained the right to use; (4) New energy division photovoltaic power generation and sales; R&D
installation and sales of photovoltaic equipment design and installation of photovoltaic power station project.Date of financial statement approval: This financial statement is approved by the Board of Directors of the Company on
April 18 2025.IV. Basis for the preparation of financial statements
1. Preparation basis
The Company prepares the financial statements based on continuous operation and according to actual transactions and
events with figures confirmed and measured in compliance with the Accounting Standards for Business Enterprises and other
specific account standards application guide and interpretations. The Company has also disclosed related financial information
117Annual Report 2024 of China Fangda Group Co. Ltd.
according to the requirement of the Regulations of Information Disclosure No.15 – General Provisions for Financial Statements
(Revised in 2023) issued by the CSRC.
2. Continuous operation
The Company assessed the continuing operations capability of the Company for the 12 months from the end of the reporting
period. No matters were found that would affect the Company's ability to continue as a going concern. It is reasonable for the
Company to prepare financial statements based on continuing operations.V. Significant Account Policies and Estimates
The following major accounting policies and accounting estimates shall be formulated in accordance with the accounting
standards of the enterprise. Unmentioned operations are carried out in accordance with the relevant accounting policies in the
enterprise accounting standards.
1. Statement of compliance to the Enterprise Accounting Standard
These financial statements meet the requirements of the Accounting Standards for Business Enterprises and truly and fully
reflect the Company's financial status performance result changes in shareholders' equity and cash flows.
2. Fiscal Period
The Company The fiscal period ranges between January 1 and December 31 of the Gregorian calendar.
3. Operation period
Our normal business cycle is one year
4. Bookkeeping standard money
The Company's bookkeeping standard currency is Renminbi and overseas subsidiaries are based on the currency of the
main economic environment in which they operate.
5. Method for determining importance criteria and selection criteria
□Applicable □ Inapplicable
Item Importance criteria
Amount of bad debt reserves recovered or reversed Amount greater than 5% of the total consolidated profit and greater than
118Annual Report 2024 of China Fangda Group Co. Ltd.
for important accounts receivable in the current RMB5 million
period; important accounts receivable write off
Important ongoing projects Amount greater than 1% of total consolidated net assets
Important payables with an aging of over 1 year A single project is greater than 0.1% of the combined total assets
Major non wholly-owned subsidiaries Individual net assets greater than 1% of the total consolidated net assets
The individual profit before tax is greater than 5% of the consolidated
Significant joint operations
profit before tax and exceeds RMB5000000.The investment return is greater than 5% of the total consolidated profit
Important joint ventures and associates
and is greater than RMB5 million
6. Accounting treatment of the entities under common and different control
(1) Consolidation of entities under common control
The assets and liabilities acquired by the Company in a business combination are measured at the book value of the
combined party in the consolidated financial statements of the ultimate controlling party on the date of combination. For parties
being merged with accounting policies and periods different from those of the Company before the merger the accounting policies
are unified based on the principle of materiality. This means adjusting the book value of the assets and liabilities of the merged
party according to the Company's accounting policies and periods. If there is a difference between the book value of the net assets
acquired by the Company in the business combination and the book value of the consideration paid first adjust the balance of the
capital reserve (capital premium or equity premium) the balance of the capital reserve (capital premium or equity premium) If it is
insufficient to offset the surplus reserve and undistributed profits will be offset in sequence.For the accounting treatment method of business combination not under the same control through step-by-step transactions
see Chapter X V. important accounting policies and accounting estimates 7. (6).
(2) Consolidation of entities under different control
All identifiable assets and liabilities acquired by the Company during the merger shall be measured at its fair value on the
date of purchase. For parties being acquired with accounting policies and periods different from those of the Company before the
acquisition the accounting policies are unified based on the principle of materiality. This means adjusting the book value of the
assets and liabilities of the acquired party according to the Company's accounting policies and periods. The merger cost of the
Company on the date of purchase is greater than the fair value of the assets and liabilities recognized by the purchaser in the
merger and is recognized as goodwill. If the merger cost is less than the difference between the identifiable assets and the fair
value of the liabilities obtained by the purchaser in the enterprise merger the merger cost and the fair value of the identifiable
assets and the liabilities obtained by the purchaser in the enterprise merger are reviewed and the merger cost is still less than the
119Annual Report 2024 of China Fangda Group Co. Ltd.
fair value of the identifiable assets and liabilities obtained by the purchaser after the review the difference is considered as the
profit and loss of the current period of the merger.For the accounting treatment method of business combination not under the same control through step-by-step transactions
see Chapter X V. important accounting policies and accounting estimates. 7. (6).
(3) Treatment of related transaction fee in enterprise merger
Agency expenses and other administrative expenses such as auditing legal consulting or appraisal services occurred
relating to the merger of entities are accounted into current income account when occurred. The transaction fees of equity
certificates or liability certificates issued by the purchaser for payment for the acquisition are accounted at the initial amount of the
certificates.
7. Judgment criteria for control and preparation methods for consolidated financial statements
(1) Determination of control criteria and consolidation scope
Control means the power possessed by the Company on invested entities to share variable returns by participating in related
activities of the invested entities and to impact the amount of the returns by using the power. The definition of control includes
three basic elements: first the investor has the power over the investee; second enjoys variable returns due to participation in the
investee's related activities; and third has the ability to use the power over the investee to influence its return amount. When the
Company's investment in the invested party meets the above three elements it indicates that the Company can control the invested
party.The consolidated scope of the consolidated financial statements is determined on a control basis and includes not only
subsidiaries determined on the basis of voting rights (or similar voting rights) themselves or in conjunction with other
arrangements but also structured subjects determined on the basis of one or more contractual arrangements.The subsidiary company is the subject controlled by the Company (including the enterprise the divisible part of the
invested unit and the structured subject controlled by the enterprise etc.). The structured subject is the subject which is not
designed to determine the controlling party by taking the voting right or similar right as the decisive factor.
(2) Special provisions regarding the parent company being an investment entity
120Annual Report 2024 of China Fangda Group Co. Ltd.
If the parent company is an investment entity only those subsidiary companies that provide services related to investment
activities of the investment entity shall be included in the consolidation scope. Other subsidiary companies shall not be
consolidated and their equity investments shall be recognized as financial assets measured at fair value with changes in fair value
recognized in profit or loss.The parent company qualifies as an investment entity when it simultaneously meets the following conditions:
* The company obtains funds from one or more investors with the purpose of providing investment management services
to the investors.* The sole purpose of the Company's operations is to generate returns for the investors through capital appreciation
investment income or both.* The company evaluates and assesses the performance of almost all of its investments based on fair value.When the parent company changes from a non-investment entity to an investment entity it shall only include those
subsidiary companies that provide relevant services for its investment activities in the preparation of consolidated financial
statements. Other subsidiary companies shall no longer be consolidated and the principle of recognizing partially disposed
subsidiary companies' equity while retaining control shall be applied.When the parent company changes from an investment entity to a non-investment entity the subsidiary companies that were
previously not included in the consolidation financial statements shall be included as of the date of the change. The fair value of
these subsidiary companies on the date of the change shall be regarded as the transaction price of the acquisition and accounted for
using the accounting treatment for business combinations under common control.
(3) Preparation of Consolidated Financial Statements
The Company prepares consolidated financial statements based on the financial statements of itself and its subsidiaries and
based on other relevant information.The Company compiles consolidated financial statements regards the whole enterprise group as an accounting entity
reflects the overall financial status operating results and cash flow of the enterprise group according to the confirmation
121Annual Report 2024 of China Fangda Group Co. Ltd.
measurement and presentation requirements of the relevant enterprise accounting standards and the unified accounting policy and
accounting period.* Merge the assets liabilities owner's rights and interests income expenses and cash flow of parent company and
subsidiary company.* Offset the long-term equity investment of the parent company to the subsidiary company and the share of the parent
company in the ownership rights of the subsidiary company.* Offset the influence of internal transaction between parent company subsidiary company and subsidiary company. If an
internal transaction indicates that the relevant asset has suffered an impairment loss the part of the loss shall be confirmed in full.* adjust the special transaction from the angle of enterprise group.
(4) Processing of subsidiaries during the reporting period
* Increase of subsidiaries or business
A. Subsidiary or business increased by business combination under the same control
(A) When preparing the consolidated balance sheet adjust the opening number of the consolidated balance sheet and adjust
the related items of the comparative statement. The same report entity as the consolidated balance sheet will exist from the time of
the final control party.
(B) When preparing the consolidated cash flow statement the cash flows of the subsidiary and the business combination
from the beginning of the current period to the end of the reporting period are included in the consolidated cash flow statement
and the related items of the comparative statement are adjusted which is regarded as the combined report body since the final The
controller has been there since the beginning of control.
(C) When preparing the consolidated cash flow statement the cash flows of the subsidiary and the business combination
from the beginning of the current period to the end of the reporting period are included in the consolidated cash flow statement
and the related items of the comparative statement are adjusted which is regarded as the combined report body since the final The
controller has been there since the beginning of control.
122Annual Report 2024 of China Fangda Group Co. Ltd.
B. Subsidiary or business increased by business combination under the same control
(A) When preparing the consolidated balance sheet the opening number of the consolidated balance sheet is not adjusted.
(B) When preparing the consolidated profit statement the income expense and profit of the subsidiary company and the
business Purchase date and Closing balance shall be included in the consolidated profit statement.
(C) When the consolidated cash flow statement is prepared the cash flow from the purchase date of the subsidiary to the
end of the reporting period is included in the consolidated cash flow statement.* Disposal of subsidiaries or business
A. When preparing the consolidated balance sheet the opening number of the consolidated balance sheet is not adjusted.B. When preparing the consolidated profit statement the income expense and profit of the subsidiary company and the
business opening and disposal date shall be included in the consolidated profit statement.C. When the consolidated cash flow statement is prepared the cash flow from the Beginning of the period of the subsidiary
to the end of the reporting period is included in the consolidated cash flow statement.
(5) Special considerations in consolidation offsets
* The long-term equity investment held by a subsidiary company shall be regarded as the inventory shares of the
Company as a subtraction of the owner's rights and interests which shall be listed under the item of "subtraction: Stock shares"
under the item of owner's rights and interests in the consolidated balance sheet.The long-term equity investments held by the subsidiaries are offset by the shares of the shareholders of the subsidiaries.* The "special reserve" and "general risk preparation" projects because they are neither real capital (or share capital) nor
capital reserve but also different from the retained income and undistributed profits are restored according to the ownership of the
parent company after the long-term equity investment is offset by the ownership rights and interests of the subsidiary company.* If there is a temporary difference between the book value of assets and liabilities in the consolidated balance sheet and
the taxable basis of the taxpayer due to the offset of the unrealized internal sales gain or loss the deferred income tax asset or the
123Annual Report 2024 of China Fangda Group Co. Ltd.
deferred income tax liability is confirmed in the consolidated balance sheet and the income tax expense in the consolidated profit
statement is adjusted with the exception of the deferred income tax related to the transaction or event directly included in the
owner's equity and the merger of the enterprise.* The unrealized internal transaction gains and losses incurred by the Company from selling assets to subsidiaries shall be
fully offset against the "net profit attributable to the owners of the parent company". The unrealized internal transaction gains and
losses arising from the sale of assets by the subsidiary to the Company shall be offset between the "net profit attributable to the
owners of the parent company" and the "minority shareholder gains and losses" in accordance with the Company's distribution
ratio to the subsidiary. The unrealized internal transaction gains and losses arising from the sale of assets between subsidiaries
shall be offset between the "net profit attributable to the owners of the parent company" and the "minority shareholders' gains and
losses" in accordance with the Company's distribution ratio to the seller's subsidiary .* If the current loss shared by the minority shareholders of the subsidiary exceeds the share of the minority shareholders in
the owner 's equity of the subsidiary at the beginning of the period the balance should still be offset against the minority
shareholders 'equity.
(6) Accounting treatment of special transactions
* Purchase minority shareholders' equity
The Company purchases the shares of the subsidiaries owned by the minority shareholders of the subsidiaries. In the
individual financial statements the investment costs of the newly acquired long-term investments of the minority shares shall be
measured at the fair value of the price paid. In the consolidated financial statements the difference between the newly acquired
long-term equity investment due to the purchase of minority equity and the share of net assets that should be continuously
calculated by the subsidiary since the purchase date or the merger date should be adjusted according to the new shareholding ratio.The product (capital premium or equity premium) if the capital reserve is insufficient to offset the surplus reserve and
undistributed profits are offset in turn.* Step-by-step acquisition of control of the subsidiary through multiple transactions
A. Enterprise merger under common control through multiple transactions
124Annual Report 2024 of China Fangda Group Co. Ltd.
On the date of the merger the Company determines the initial investment cost of the long-term equity investment in the
individual financial statements based on the share of the subsidiary's net assets that should be enjoyed after the merger in the final
controller's consolidated financial statements; the initial investment cost and the difference between the book value of the long-
term equity investment before the merger plus the book value of the consideration paid for new shares acquired on the merger date
the capital reserve (capital premium or equity premium) is adjusted and the capital reserve (capital premium or equity premium) is
insufficient to offset Reduced in turn offset the surplus reserve and undistributed profits.In consolidated financial statements assets and liabilities obtained by the merging party from the merged party should be
measured at the book value in the final controlling party's consolidated financial statements other than the adjustment made due to
differences in accounting policies; adjust the capital surplus (share premium) according to the difference between the initial
investment cost and the book value of the held investment before merger plus the book value of the consideration paid on the
merger date. Where the capital surplus falls short the retained income should be adjusted.Changes in recognized related profit and loss other misc. incomes and other owner's equity between the later one of the
date when the original stock equity was obtained and the date when the merged party and merging party become under the
common control should respectively write down the retained profit in beginning of the report period or current period’s profit or
loss.A. Enterprise merger under common control through multiple transactions
On the merger day in individual financial statements the initial investment cost of the long-term equity investment on the
merger day is based on the book value of the long-term equity investment previously held plus the sum of the additional
investment costs on the merger day.In the consolidated financial statements the equity held in the acquiree prior to the acquisition date is remeasured at its fair
value on the acquisition date. If the equity held in the acquiree before the acquisition date is designated as a financial asset
measured at fair value through other comprehensive income the difference between the fair value and its carrying amount is
included in retained earnings and the accumulated fair value changes originally included in other comprehensive income are
transferred out to retained earnings. If the equity held in the acquiree prior to the acquisition date is a financial asset measured at
fair value through profit or loss or a long-term equity investment accounted for using the equity method the difference between
the fair value and its carrying amount is included in the current period's investment income. For equity held in the acquiree before
the acquisition date that involves other comprehensive income under the equity method and changes in other equity outside of net
125Annual Report 2024 of China Fangda Group Co. Ltd.
profit or loss other comprehensive income and profit distribution under the equity method the related other comprehensive
income is accounted for on the same basis as if the investee directly disposed of the related assets or liabilities on the acquisition
date and the related changes in other equity are transferred to the investment income of the current period to which the acquisition
date belongs.
(3) The Company disposes of long-term equity investment in subsidiaries without losing control
The parent company partially disposes of the long-term equity investment in the subsidiary company without losing control.In the consolidated financial statements the disposal price corresponds to the disposal of the long-term equity investment. The
difference between the shares is adjusted for the capital reserve (capital premium or equity premium). If the capital reserve is
insufficient to offset the retained earnings are adjusted.* The Company disposes of long-term equity investment in subsidiaries and loses control
A. One transaction disposition
If the Company loses control over the Invested Party due to the disposal of part of the equity investment it shall remeasure
the remaining equity according to its fair value at the date of loss of control when compiling the consolidated financial statement.The difference between the consideration obtained from the disposal of equity plus the fair value of the remaining equity minus
the share of net assets and goodwill of the original subsidiary calculated continuously from the acquisition date or consolidation
date based on the original shareholding ratio is included in the investment income for the period in which control is lost.Other comprehensive income and changes in other equity related to equity investments in the original subsidiary are
accounted for on the same basis as if the assets or liabilities related to the original subsidiary were directly disposed of at the time
of loss of control. Changes in other equity related to the original subsidiary accounted for under the equity method are transferred
to the current period's profit or loss at the time of loss of control.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
126Annual Report 2024 of China Fangda Group Co. Ltd.
disposal of equity is carried forward the price received and the disposal The difference between the book value of the long-term
equity investment is included in the current investment income; in the consolidated financial statements it should be handled in
accordance with the relevant provisions of "the parent company disposes of the long-term equity investment in the subsidiary
without losing control."
If a step-by-step transaction belongs to a "blanket transaction" the transaction shall be treated as a transaction that disposes
of the subsidiary and loses control; In individual financial statements the difference between each disposal price before the loss of
control and the book value of the long-term equity investment corresponding to the equity being disposed of is first recognized as
other consolidated gains and then converted to the current loss of control at the time of the loss of control; In the consolidated
financial statements for each transaction prior to the loss of control the difference between the disposition of the price and the
disposition of the investment corresponding to the share in the net assets of the subsidiary shall be recognized as other
consolidated gains and shall at the time of the loss of control be transferred to the loss of control for the current period.Where the terms conditions and economic impact of each transaction meet one or more of the following conditions
usually multiple transactions are treated as a "package deal":
(a) These transactions were concluded at the same time or in consideration of mutual influence.(b) These transactions can only achieve the business result as a whole;
(c) The effectiveness of one transaction depends the occurrence of at least another transaction;
(d) A single transaction is not economic and is economic when considered together with other transactions.
(5) Proportion of minority shareholders in factor companies who increase capital and dilute ownership of parent companies
Proportion of Others ( minority shareholders in factor companies who increase capital dilute Subsidiaries of parent
companies. In the consolidated financial statements the share of the parent company in the net book assets of the former
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.
127Annual Report 2024 of China Fangda Group Co. Ltd.
8. Recognition of cash and cash equivalents
Cash refers to cash in stock and deposits that can be used for payment at any time. Cash equivalents refer to investments
with a short holding period (generally referring to expiry within three months from the date of purchase) strong liquidity easy to
convert to a known amount of cash and little risk of value change.
9.Foreign exchange business and foreign exchange statement translation
(1) Methods for determining conversion rates in foreign currency transactions
The Company translates foreign currency transactions into the functional currency at the initial recognition using the spot
exchange rate on the transaction date or an approximate exchange rate that is determined according to a reasonable method and is
close to the spot exchange rate on the transaction date. The resulting amount is recorded in the accounting currency.
(2) Methods of conversion of foreign currency items on balance sheet days
At the balance sheet date foreign currency items are translated on the spot exchange rate of the balance sheet date. The
exchange differences caused by the difference in exchange rates on the balance sheet date and initial recognizing date or previous
balance sheet date are included in the current profits and losses. For foreign currency non-monetary items measured at historical
cost the spot exchange rate on the transaction date is still used for translation. For inventory measured at the lower of cost and net
realizable value when inventory is purchased in foreign currency and its net realizable value is reflected in foreign currency at the
balance sheet date the net realizable value is first translated into the bookkeeping base currency at the spot exchange rate on the
balance sheet date and then compared with the inventory cost reflected in the bookkeeping base currency to determine the end-of-
period value of the inventory. For foreign currency non-monetary items measured at fair value the spot exchange rate on the fair
value determination date is used for translation. For financial assets measured at fair value through profit or loss the difference
between the translated bookkeeping base currency amount and the original bookkeeping base currency amount is included in the
current period's profit or loss. For non-trading equity instrument investments designated as measured at fair value through other
comprehensive income the difference between the translated bookkeeping base currency amount and the original bookkeeping
base currency amount is included in other comprehensive income.
(3) Translation of foreign exchange statements
128Annual Report 2024 of China Fangda Group Co. Ltd.
Prior to the conversion of the financial statements of an enterprise's overseas operations the accounting period and policy of
the overseas operations should be adjusted to conform to the accounting period and policy of the enterprise. The financial
statements of the corresponding currency (other than the functional currency) should be prepared according to the adjusted
accounting policy and the accounting period. The financial statements of the overseas operations should be converted according to
the following methods:
* The assets and liabilities items in the balance sheet are translated at the spot exchange rate on the balance sheet date.Except for the "undistributed profits" items the owner's equity items are translated at the spot exchange rate when they occur.* The income and expense items in the profit statement are converted at the spot exchange rate on the transaction date or
the approximate exchange rate of the spot exchange rate.* The foreign currency cash flow and the foreign subsidiary's cash flow are converted using the immediate exchange rate
or the approximate exchange rate at the date of the cash flow. The impact of exchange rate changes on cash should be used as an
adjustment item and presented separately in the cash flow statement.* The foreign currency translation differences generated are presented under the "Other Comprehensive Income" item
within the owner's equity section of the consolidated balance sheet when preparing the consolidated financial statements.When foreign operations are disposed of and the control rights are lost the difference in foreign currency statements related
to the overseas operations that are listed in the shareholders' equity items in the balance sheet is transferred to the profit or loss for
the current period either in whole or in proportion to the disposal of the foreign operations.
10. Financial instrument
Financial instrument refers to a company's financial assets and contracts that form other units of financial liabilities or
equity instruments.
(1) Recognition and de-recognition of financial instrument
The Company recognizes a financial asset or liability when it becomes one party in the financial instrument contract.Financial asset is derecognized when:
129Annual Report 2024 of China Fangda Group Co. Ltd.
* The contractual right to receive the cash flows of the financial assets is terminated;
* The financial asset is transferred and meets the following derecognition condition.If the current obligation of a financial liability (or part of it) has been discharged the Company derecognizes the financial
liability (or part of the financial liability). When the Company (borrower) and lender enter into an agreement to replace the
original financial liabilities by undertaking new financial liabilities and the contract terms for the new financial liabilities are
essentially different from those for the original one the original financial liabilities will be derecognized and new financial
liabilities will be recognized. Where the Company makes substantial amendments to the contract terms of the original financial
liability (or part thereof) it shall terminate the original financial liability and confirm a new financial liability in accordance with
the amended terms.Financial asset transactions in regular ways are recognized and de-recognized on the transaction date. The conventional sale
of financial assets means the delivery of financial assets in accordance with the contractual terms and conditions at the time set
out in the regulations or market practices. Transaction date refers to the date when the Company promises to buy or sell financial
assets.
(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.
130Annual Report 2024 of China Fangda Group Co. Ltd.
The subsequent measurement of financial assets depends on their classification:
* Financial assets measured at amortized cost
Financial assets that meet the following conditions at the same time are classified as financial assets measured at amortized
cost: The Company's business model for managing this financial asset is to collect contractual cash flows as its goal; the contract
terms of the financial asset stipulate that Cash flow is only the payment of principal and interest based on the outstanding principal
amount. For such financial assets the actual interest rate method is used for subsequent measurement according to the amortized
cost. The gains or losses arising from the termination of recognition amortization or impairment based on the actual interest rate
method are included in the current profit and loss.* Financial assets measured at fair value and whose changes are included in other comprehensive income
Financial assets that meet the following conditions at the same time are classified as financial assets measured at fair value
and their changes are included in other comprehensive income: The Company's business model for managing this financial asset is
to both target the collection of contractual cash flows and the sale of financial assets. Objective; The contractual terms of the
financial asset stipulate that the cash flow generated on a specific date is only for the payment of principal and interest based on
the outstanding principal amount. For such financial assets fair value is used for subsequent measurement. Except for impairment
losses or gains and exchange gains and losses recognized as current gains and losses changes in the fair value of such financial
assets are recognized as other comprehensive income. Until the financial asset is derecognized its accumulated gains or losses are
transferred to current gains and losses. However the relevant interest income of the financial asset calculated by the actual interest
rate method is included in the current profit and loss.The Company irrevocably chooses to designate a portion of non-tradable equity instrument investment as a financial asset
measured at fair value and whose variation is included in other consolidated income. Only the relevant dividend income is
included in the current profit and loss and the variation of fair value is recognized as other consolidated income.* Financial assets measured at fair value with variations accounted into current income account
The above financial assets measured at amortized cost and other financial assets measured at fair value and whose changes
are included in other comprehensive income are classified as financial assets measured at fair value and whose changes are
131Annual Report 2024 of China Fangda Group Co. Ltd.
included in the current profit and loss. For such financial assets fair value is used for subsequent measurement and all changes in
fair value are included in current profit and loss.
(3) Classification and measurement of financial liabilities
The Company classifies financial liabilities into financial liabilities measured at fair value and their changes included in the
current profit and loss loan commitments and financial guarantee contract liabilities for loans below market interest rates and
financial liabilities measured at amortized cost.The subsequent measurement of financial liabilities depends on their classification:
* Financial liabilities measured at fair value with variations accounted into current income account
Such financial liabilities include transactional financial liabilities (including derivatives that are financial liabilities) and
financial liabilities designated as at fair value through profit or loss. After the initial recognition the financial liabilities are
subsequently measured at fair value. Except for the hedge accounting the gains or losses (including interest expenses) are
recognized in profit or loss. However for the financial liabilities designated as fair value and whose variations are included in the
profits and losses of the current period the variable amount of the fair value of the financial liability due to the variation of credit
risk of the financial liability shall be included in the other consolidated income. When the financial liability is terminated the
cumulative gains and losses previously included in the other consolidated income shall be transferred out of the other consolidated
income and shall be included in the retained income.* Loan commitments and financial security contractual liabilities
A loan commitment is a promise that the Company provides to customers to issue loans to customers with established
contract terms within the commitment period. Loan commitments are provided for impairment losses based on the expected credit
loss model.A financial guarantee contract refers to a contract that requires the Company to pay a specific amount of compensation to
the contract holder who suffered a loss when a specific debtor is unable to repay the debt in accordance with the original or
modified debt instrument terms. Financial guarantee contract liabilities are subsequently measured based on the higher of the loss
reserve amount determined in accordance with the principle of impairment of financial instruments and the initial recognition
amount after deducting the accumulated amortization amount determined in accordance with the revenue recognition principle.
132Annual Report 2024 of China Fangda Group Co. Ltd.
* Financial liabilities measured at amortized cost
After initial recognition other financial liabilities are measured at amortized cost using the effective interest method.Except in special circumstances financial liabilities and equity instruments are distinguished according to the following
principles:
* If the Company cannot unconditionally avoid delivering cash or other financial assets to fulfill a contractual obligation
the contractual obligation meets the definition of financial liability. While some financial instruments do not explicitly contain
terms and conditions for the delivery of cash or other financial assets they may indirectly form contractual obligations through
other terms and conditions.If a financial instrument is required to be settled with or can be settled with the Company's own equity instruments the
Company's own equity instrument used to settle the instrument needs to be considered as a substitute for cash or other financial
assets or for the holder of the instrument to enjoy the remaining equity in the assets after all liabilities are deducted. If it is the
former the instrument is the financial liabilities of the issuer; if it is the latter the instrument is the equity instrument of the issuer.In some cases a financial instrument contract provides that the Company shall or may use its own instrument of interest in which
the amount of a contractual right or obligation is equal to the amount of the instrument of its own interest which may be acquired
or delivered multiplied by its fair value at the time of settlement whether the amount of the contractual right or obligation is fixed
or is based entirely or in part on a variation of a variable other than the market price of the instrument of its own interest such as
the rate of interest the price of a commodity or the price of a financial instrument the contract is classified as a financial liability.
(4) Derivative financial instruments and embedded derivatives
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.
133Annual Report 2024 of China Fangda Group Co. Ltd.
For a hybrid instrument containing an embedded derivative instrument if the principal contract is a financial asset the
hybrid instrument as a whole applies the relevant provisions of the financial asset classification. If the main contract is not a
financial asset and the hybrid instrument is not measured at fair value and its changes are included in the current profit and loss
for accounting the embedded derivative does not have a close relationship with the main contract in terms of economic
characteristics and risks and it is If the instruments with the same conditions and exist separately meet the definition of derivative
instruments the embedded derivative instruments are separated from the mixed instruments and treated as separate derivative
financial instruments. If the fair value of the embedded derivative on the acquisition date or the subsequent balance sheet date
cannot be measured separately the hybrid instrument as a whole is designated as a financial asset or financial liability measured at
fair value and whose changes are included in the current profit or loss.
(5) Financial instrument Less
The Company shall confirm the preparation for loss on the basis of expected credit loss for financial assets measured at
amortization costs creditor's rights investments measured at fair value contractual assets leasing receivables loan commitments
and financial guarantee contracts etc.* Measurement of expected credit losses of accounts receivable
The expected credit loss refers to the weighted average of the credit losses of financial instruments that are weighted by the
risk of default. Credit loss refers to the difference between all contractual cash flows receivable from the contract and all cash
flows expected to be received by the Company at the original actual interest rate that is the present value of all cash shortages.Among them the financial assets which have been purchased or born by the Company shall be discounted according to the actual
rate of credit adjustment of the financial assets.The expected lifetime credit loss is the expected credit loss due to all possible default events during the entire expected life
of the financial instrument.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.
134Annual Report 2024 of China Fangda Group Co. Ltd.
On each balance sheet day the Company measures the expected credit losses of financial instruments at different stages.Where the credit risk has not increased significantly since the initial confirmation of the financial instrument it is in the first stage.The Company measures the preparation for loss according to the expected credit loss in the next 12 months. Where the credit risk
has increased significantly since the initial confirmation but the credit impairment has not occurred the financial instrument is in
the second stage. Where a credit impairment has occurred since the initial confirmation of the financial instrument it shall be in
the third stage and the Company shall prepare for measuring the expected credit loss of the whole survival period of the
instrument.For financial instruments with low credit risk on the balance sheet date the Company assumes that the credit risk has not
increased significantly since the initial recognition and measures the loss provision based on the expected credit losses in the next
12 months.
For financial instruments that are in the first and second stages and with lower credit risk the Company calculates interest
income based on their book balances and actual interest rates without deduction for impairment provision. For financial
instruments in the third stage interest income is calculated based on the amortized cost and the actual interest rate after the book
balance minus the provision for impairment.Regarding bills receivable accounts receivable and financing receivables regardless of whether there is a significant
financing component the Company measures the loss provision based on the expected credit losses throughout the duration.Accounts receivable/contract assets
Where there is objective evidence of impairment as well as other receivable instruments receivables other receivables
receivables financing and long-term receivables applicable to individual assessments separate impairment tests are performed to
confirm expected credit losses and prepare individual impairment. For notes receivable accounts receivable other receivables
financing of receivables long-term receivables and contract assets for which there is no objective evidence of impairment or
when individual financial assets cannot be assessed at a reasonable cost the Company divides bills receivable accounts receivable
other receivables receivable financing long-term receivables and contract assets into several combinations based on credit risk
characteristics and calculates expected credit losses on the basis of the combination. The basis for determining the combination is
as follows:
The basis for determining the combination of notes receivable is as follows:
135Annual Report 2024 of China Fangda Group Co. Ltd.
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
136Annual Report 2024 of China Fangda Group Co. Ltd.
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.* Lower credit risk
137Annual Report 2024 of China Fangda Group Co. Ltd.
If the risk of default on financial instruments is low the borrower's ability to meet its contractual cash flow obligations in
the short term is strong and even if the economic situation and operating environment are adversely changed over a long period of
time it may not necessarily reduce the receivables' performance of their contractual cash. The ability of the flow obligation the
financial instrument is considered to have a lower credit risk.* Significant increase in credit risk
The Company compares the default probability of the financial instrument during the expected lifetime determined by the
balance sheet date with the default probability of the expected lifetime during the initial confirmation to determine the relative
probability of the default probability of the financial instrument during the expected lifetime Changes to assess whether the credit
risk of financial instruments has increased significantly since initial recognition.In determining whether the credit risk has increased significantly since the initial recognition the Company considers
reasonable and evidenced information including forward-looking information that can be obtained without unnecessary
additional costs or effort. The information considered by the Company includes:
A. Significant changes in internal price indicators resulting from changes in credit risk;
B. Adverse changes in business financial or economic conditions that are expected to cause significant changes in the
debtor's ability to perform its debt service obligations;
C. Whether the actual or expected operating results of the debtor have changed significantly; whether the regulatory
economic or technical environment of the debtor has undergone significant adverse changes;
D. Whether there is a significant change in the value of the collateral used as debt collateral or the guarantee provided by a
third party or the quality of credit enhancement. These changes are expected to reduce the debtor's economic motivation for
repayment within the time limit specified in the contract or affect the probability of default;
E. Whether there is a significant change in the economic motivation that is expected to reduce the debtor's repayment
according to the contractual deadline;
138Annual Report 2024 of China Fangda Group Co. Ltd.
F. Anticipated changes to the loan contract including whether the expected violation of the contract may result in the
exemption or revision of contract obligations granting interest-free periods rising interest rates requiring additional collateral or
guarantees or making other changes to the contractual framework of financial instruments change;
G. Whether the expected performance and repayment behavior of the debtor has changed significantly;
H. Whether the contract payment is overdue for more than (including) 30 days.Based on the nature of financial instruments the Company assesses whether credit risk has increased significantly on the
basis of a single financial instrument or combination of financial instruments. When conducting an assessment based on a
combination of financial instruments the Company can classify financial instruments based on common credit risk characteristics
such as overdue information and credit risk ratings.If the overdue period exceeds 30 days the Company has determined that the credit risk of financial instruments has
increased significantly. Unless the Company does not have to pay excessive costs or efforts to obtain reasonable and warranted
information it proves that although it has exceeded the time limit of 30 days agreed upon in the Contract credit risks have not
increased significantly since the initial confirmation.* Financial assets with credit impairment
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.
139Annual Report 2024 of China Fangda Group Co. Ltd.
* Presentation of expected credit loss measurement
In order to reflect the changes in the credit risk of financial instruments since the initial recognition the Company re-
measures the expected credit losses on each balance sheet date and the increase or reversal of the loss provision resulting
therefrom is included as an impairment loss or gain. Current profit and loss. For financial assets measured at amortized cost the
loss allowance offsets the book value of the financial asset listed on the balance sheet; for debt investments measured at fair value
and whose changes are included in other comprehensive income the Company Recognition of its loss provisions in gains does not
offset the book value of the financial asset.* Canceled
If it is no longer reasonably expected that the contract cash flow of the financial assets will be fully or partially recovered
the book balance of the financial assets will be directly reduced. Such write-off constitute the derecognition of related financial
assets. This usually occurs when the Company determines that the debtor has no assets or sources of income that generate
sufficient cash flow to cover the amount that will be written down.If the financial assets that have been written down are recovered in the future the reversal of the impairment loss is included
in the profit or loss of the current period.
(6) Transfer of financial assets
The transfer of financial assets refers to the following two situations:
A. Transfer the contractual right to receive cash flow of financial assets to another party;
B. Transfers the financial assets to the other party in whole or in part but reserves the contractual right to collect the cash
flow of the financial assets and undertakes the contractual obligation to pay the collected cash flow to one or more recipients.* De-identification of transferred financial assets
Those who have transferred almost all risks and rewards in the ownership of financial assets to the transferee or have
neither transferred nor retained almost all the risks and rewards in the ownership of financial assets but have given up control of
the financial assets terminate the confirmation The financial asset.
140Annual Report 2024 of China Fangda Group Co. Ltd.
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).
141Annual Report 2024 of China Fangda Group Co. Ltd.
* Continue to be involved in the transferred financial assets
If neither transfer nor retain almost all the risks and rewards of the ownership of financial assets and have not given up
control of the financial assets the relevant financial assets should be confirmed according to the extent of their continued
involvement in the transferred financial assets and the relevant liabilities should be recognized accordingly.The extent to which the transferred financial assets continue to be involved refers to the extent to which the enterprise
undertakes the risk or compensation of the value change of the transferred financial assets.(III) Continuing identification of transferred financial assets
Where almost all risks and remuneration in relation to ownership of the transferred financial assets are retained the whole
of the transferred financial assets shall continue to be recognized and the consideration received shall be recognized as a financial
liability.The financial asset and the recognized related financial liabilities shall not offset each other. In the subsequent accounting
period the enterprise shall continue to recognize the income (or gain) generated by the financial asset and the costs (or losses)
incurred by the financial liability.
(7) Deduction of financial assets and liabilities
Financial assets and financial liabilities should be listed separately in the balance sheet and cannot be offset against each
other. However if the following conditions are met the net amount offset by each other is listed in the balance sheet:
The Company has a statutory right to offset the confirmed amount and such legal right is currently enforceable;
The Company plans to settle the net assets or realize the financial assets and liquidate the financial liabilities at the same
time.The transferring party shall not offset the transferred financial assets and related liabilities if it does not meet the conditions
for terminating the recognition.
(8) Recognition of fair value of Finance instruments
142Annual Report 2024 of China Fangda Group Co. Ltd.
For the method for determining the fair value of financial assets and financial liabilities see 33 (3) in Chapter X V.Important accounting policies and accounting estimates.
11. Notes receivable
See Chapter X V Important Accounting Policies and Accounting Estimates 10. Financial Tools.
12. Account receivable
See Chapter X V Important Accounting Policies and Accounting Estimates 10. Financial Tools.The Company needs to comply with the disclosure requirements of the decoration and decoration industry in the Guidelines
for the Self-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.
13. Receivable financing
See Chapter X V Important Accounting Policies and Accounting Estimates 10. Financial Tools.
14. Other receivables
See Chapter X V Important Accounting Policies and Accounting Estimates 10. Financial Tools.
15. Contract assets
The Company presents contract assets or liabilities in the balance sheet according to the relationship between performance
obligation and customer payment. The consideration for which the Company is entitled to receive (subject to factors other than the
passage of time) for the transfer of goods or the provision of services to customers is listed as contract assets. The Company's
obligation to transfer goods or provide services to customers for consideration received or receivable from customers is listed as
contractual liabilities.Contract assets and contract liabilities are listed separately in the balance sheet. Contract assets and contract liabilities under
the same contract are listed in net amount. If the net amount is the debit balance it shall be listed in "contract assets" or "other
non-current assets" according to its liquidity; if the net amount is the credit balance it shall be listed in "contract liabilities" or
"other non-current liabilities" according to its liquidity. Contract assets and contract liabilities under different contracts cannot
offset each other.
143Annual Report 2024 of China Fangda Group Co. Ltd.
For the determination method and accounting treatment method of the Company's expected credit loss of contract assets see
10. Financial instruments in Chapter X V. Important accounting policies and accounting estimates.
16. Inventories
(1) Classification of inventories
Inventory refers to the finished products or commodities held by the Company for sale in daily activities the products in
process of production the materials and materials consumed in the process of production or providing labor services including
entrusted processing materials raw materials products in process materials in transit stored goods low value consumables
development costs development products and contract performance costs etc.
(2) Pricing of delivering inventory
Inventories are measured at cost when procured. Raw materials products in process and commodity stocks in transit are
measured by the weighted average method.The inventory of real estate business mainly includes inventory materials development costs development products etc.The actual costs of development products include land transfer payment infrastructure and facility costs installation engineering
costs borrows before completion of the development and other costs during the development process. The special maintenance
funds collected in the first period are included in the development overheads. When the control right of development products is
transferred the individual valuation method is used to determine its actual cost.
(3) Inventory system
The Company inventory adopts the perpetual inventory system counting at least once a year the inventory profit and loss
amount is included in the current year's profit and loss.
(4) Criteria for recognizing and providing for provision for decline in value of inventories
On the balance sheet date inventories are accounted depending on which is lower between the cost and the net realizable
value. If the cost is higher than the net realizable value the impairment provision will be made.
144Annual Report 2024 of China Fangda Group Co. Ltd.
The realizable net value of inventory should be recognized based on solid evidence with the purpose of the inventory and
after-balance-sheet-date events taken into consideration.
(1) In the course of normal production and operation the net realizable value of finished goods commodities and materials
directly used for sale shall be determined by the estimated price of the inventory minus the estimated cost of sale and related taxes.The inventory held for the execution of a sales contract or a labor contract shall be measured on the basis of the contract price as
its net realizable value; If the quantity held is greater than the quantity ordered under the sales contract the net realizable value of
the excess inventory is measured on the basis of the general sales price. For materials used for sale the market price shall be used
as the measurement basis for the net realizable value.* In the normal production and operation process the inventory of materials that need to be processed is determined by the
amount of the estimated selling price of the finished product minus the estimated cost to be incurred at the time of completion
estimated sales expenses and related taxes Realize the net value. If the net realizable value of the finished product produced by it is
higher than the cost the material is measured at cost; If the decrease in the price of the material indicates that the net realizable
value of the finished product is lower than the cost the material is measured as the net realizable value and the inventory is
prepared for a decrease based on its difference.* If the factors affecting the previous write-down of inventory value have disappeared on the balance sheet date the
amount of the write-down will be restored and transferred back within the amount of inventory depreciation reserve that has been
accrued and the amount returned will be included in the current profit and loss.
(5) Methods of amortization of swing materials
Low-value consumables are amortized on on-off amortization basis at using.
17. Long-term share equity investment
The Group's long-term equity investment includes control on invested entities and significant impacts on equity investment.Invested entities on which the Group has significant impacts are associates of the Group.
(1) Basis for recognition of common control and major influence on invested entities
Common control refers to the common control of an arrangement in accordance with the relevant agreement and the
relevant activities of the arrangement must be agreed upon by the participants who share control. In determining whether there is
145Annual Report 2024 of China Fangda Group Co. Ltd.
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
146Annual Report 2024 of China Fangda Group Co. Ltd.
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
147Annual Report 2024 of China Fangda Group Co. Ltd.
The Company uses the cost method to measure long-term share equity investment in which the Company can control the
invested entity; and uses the equity method to measure long-term share equity investment in which the Company has substantial
influence on the invested entity.* Cost
For the long-term equity investment measured on the cost basis except for the announced cash dividend or profit included
in the practical cost or price when the investment was made the cash dividends or profit distributed by the invested entity are
recognized as investment gains in the current gain/loss account.Equity
Gains from long-term equity investment measured by equity
When the equity method is used to measure long-term equity investment the investment cost will not be adjusted if the
investment cost of the long-term equity investment is larger than the share of fair value of the recognizable assets of the invested
entity. When it is smaller than the share of fair value of the recognizable assets of the invested entity the book value will be
adjusted and the difference is included in the current gains of the investment.When the equity method is used the current investment gain is the share of the net gain realized in the current year that can
be shared or borne recognized as investment gain and other misc. income. The book value of the long-term equity investment is
adjusted accordingly. The book value of the long-term equity investment should be accordingly decreased based on the share of
profit or cash dividend announced by the invested entity; according to other changes in the owner's equity except for net profit and
loss other misc. income and profit distribution of the invested entity adjust the book value of the long-term equity investment and
record it in the capital surplus (other capital surplus). When the share of the net gains that can be enjoyed is recognized it is
recognized after the net profit of the invested entity is adjusted based on the fair value of the recognizable assets of the invested
entity according to the Company's accounting policies and accounting period. Where the accounting policy and accounting period
adopted by the Invested unit are inconsistent with the Company the financial statements of the Invested unit shall be adjusted in
accordance with the accounting policy and accounting period of the Company and the investment income and other consolidated
income shall be recognized. Internal transaction gain not realized between the Company and affiliates is measured according to the
shareholding proportion and the investment gains is recognized after deduction. The unrealized internal transaction loss between
the Company and the invested entity is the impairment loss of transferred assets and should not be written off.
148Annual Report 2024 of China Fangda Group Co. Ltd.
Where substantial influence on invested entities is imposed or joint control is implemented due to increase in investment
the sum of the fair value of the original equity and increased investment on the conversion date is the initial investment cost under
the equity method. If the equity investment originally held is classified as other equity instrument investment the difference
between the fair value and the book value as well as the accumulated gains or losses originally included in other comprehensive
income shall be transferred out of other comprehensive income and included in retained income in the current period when the
equity method is adopted.Where joint control or substantial influence on invested entities is lost due to disposal of part of investment the remaining
equity after the disposal should be treated according to the Enterprise Accounting Standard No.22 – Recognition and Measurement
of Financial Instruments from the date of losing the joint control or substantial influence. The difference between the fair value
and book value should be accounted the profit and loss of the current period. For other misc. incomes of original share equity
investment determined using the equity method when the equity method is no longer used it should be treated based on the same
basis of the treatment of related assets or liability of the invested entities; the other owners' interests related to the original share
equity investment should be transferred to gain/loss of the current period.
(4) Equity investment held for sale
For the remaining equity investments not classified as assets held for sale the equity method is adopted for accounting
treatment.Equity investments classified as held for sale to associates that are no longer eligible to hold classified assets for sale are
retrospectively adjusted using the equity method starting from the date that they are classified as held for sale. The classification is
adjusted to hold the financial statements for the period to be sold.
(5) Impairment examination and providing of impairment provision
For investments in subsidiaries associates and joint ventures the method of accruing asset impairment is shown in 23.Long-term asset impairment in Chapter X V. Important accounting policies and accounting estimates.XVIII. Investment real estate
(1) Classification of investment real estate
Investment real estate is held for rent or capital appreciation or both. These include inter alia:
149Annual Report 2024 of China Fangda Group Co. Ltd.
* Leased land using right
(2) the right to use the land that is transferred after holding and preparing for the increment.
* Leased building
(2) Measurement of investment real estate
For investment real estate with an active real estate transaction market and the Company can obtain market price and other
information of same or similar real estate to reasonably estimate the investment real estate's fair value the Company will use the
fair value mode to measure the investment real estate subsequently. Variations in fair value are accounted into the current gain/loss
account.The fair value of investment real estate is determined with reference to the current market prices of same or similar real
estate in active markets; when no such price is available with reference to the recent transaction prices and consideration of
factors including transaction background date and district to reasonably estimate the fair value; or based on the estimated lease
gains and present value of related cash flows.For investment real estate under construction (including investment real estate under construction for the first time) if the
fair value cannot be reliably determined but the expected fair value of the real estate after completion is continuously and reliably
obtained the investment real estate under construction is measured by cost. When the fair value can be measured reliably or after
completion (the earlier one) it is measured at fair value. For an investment real estate whose fair value is proven unable to be
obtained continuously and reliably by objective evidence the real estate will be measured at cost basis until it is disposed and no
residual value remains as assumed.If the cost model is used for subsequent measurement of investment real estate depreciation or amortization is calculated
according to the straight-line method after the cost of investment real estate minus accumulated impairment and net residual value.See this Chapter X V. Important accounting policies for the method of accruing asset impairment 23. Impairment of long-term
assets in accounting estimates.The types of investment real estate estimated economic useful life and estimated net residual value rate are determined as
follows:
150Annual Report 2024 of China Fangda Group Co. Ltd.
Type Service year (year) Residual rate % Annual depreciation rate %
Houses & buildings 20-50 10.00 1.80-4.50
19. Fixed assets
(1) Recognition conditions
Fixed assets are recognized at the actual cost of acquisition when the following conditions are met: (1) The economic
benefits associated with the fixed assets are likely to flow into the enterprise.Fixed assets are recognized at the actual cost of acquisition when the following conditions are met: (1) The economic
benefits associated with the fixed assets are likely to flow into the enterprise.* The cost of the fixed assets can be measured reliably.Overhaul cost generated by regular examination on fixed assets is recognized as fixed assets costs when there is evidence
proving that it meets fix assets recognition conditions. If not it will be accounted into the current gain/loss account.
(2) Depreciation method
Annual depreciation
Type Depreciation method Service year (year) Residual rate %
rate %
Houses & buildings Average age 20-50 10.00 1.80-4.50
Mechanical equipment Average age 10 10.00 9.00
Transportation facilities Average age 5 10.00 18.00
Electronics and other
Average age 5 10.00 18.00
devices
PV power plants Average age 20 5.00 4.75
20. Construction in process
(1) Construction in progress is accounted for by project classification.
(2) Standard and timing for transferring construction in process into fixed assets
The full expenditure incurred on the construction-in-progress project as a fixed asset is recorded as the value of the asset
before the asset is constructed to the intended usable state. This includes construction costs the original cost of equipment other
necessary expenditures incurred in order to enable the construction works to reach the intended usable status and the borrowing
151Annual Report 2024 of China Fangda Group Co. Ltd.
costs incurred for the specific borrowing of the project and the general borrowing expenses incurred before the assets reach the
intended usable status. Construction in process will be transferred to fixed assets when it reaches the preset service condition. The
fixed assets that have reached the intended usable state but have not been completed shall be transferred to the fixed assets
according to the estimated value according to the estimated value according to the estimated value according to the project budget
cost or actual project cost etc. The depreciation of the fixed assets shall be accrued according to the Company's fixed assets
depreciation policy. The original estimated value shall be adjusted according to the actual cost after the completion.XXI. Borrowing expenses
(1) Recognition principles for capitalization of borrowing expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing or production of asset satisfying the
conditions of capitalizing are capitalized and accounted as cost of related asset.
(1) Asset expenditure has occurred;
* The borrowing expense has already occurred;
* Purchasing or production activity which is necessary for the asset to reach the useful status has already started.Other interest on loans discounts or premiums and exchange differences are included in the income and loss incurred in the
current period.If the construction or production of assets satisfying the capitalizing conditions is suspended abnormally for over 3 months
capitalizing of borrowing expenses shall be suspended. During the normal suspension period borrowing expenses will be
capitalized continuously.When the asset satisfying the capitalizing conditions has reached its usable or sellable status capitalizing of borrowing
expenses shall be terminated.
(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
152Annual Report 2024 of China Fangda Group Co. Ltd.
on the capitalization rate which is the exceeding part of the accumulative assets expense over weighted average of the assets
expense of the special borrowing/used general borrowing.If the assets that are constructed or produced under the condition of capitalization occupy the general borrowing the interest
amount to be capitalized in the general borrowing shall be calculated and determined by multiplying the capital rate of the general
borrowing by the weighted average of the asset expenditure of the accumulated assets whose expenditure exceeds that of the
specialized borrowing. The capitalization ratio is the weighted average interest rate of general borrowings.XXII. Intangible assets
Recorded at the actual cost of acquisition.
(1) Amortization of intangible assets
* Useful life of intangible assets with limited useful life
Item Estimated useful life Basis
Land using right Term Use right assets
Reference to determine the lifetime of a company for which it
Trademarks and patents 10
can bring economic benefits
Reference to determine the lifetime of a company for which it
Proprietary technology 10
can bring economic benefits
Reference to determine the lifetime of a company for which it
Software 5. 10 years
can bring economic benefits
At the end of each year the Company will reexamine the useful life and amortization basis of intangible assets with limited
useful life. Upon review the service life and amortization methods of intangible assets at the end of the period are not different
from those previously estimated.
(2) Intangible assets which cannot be foreseeable to bring economic benefits to enterprises shall be regarded as intangible
assets whose useful life is uncertain. For intangible assets with uncertain service life the Company reviews the service life of
intangible assets with uncertain service life at the end of each year. If it is still uncertain after rechecking it shall conduct an
impairment test on the balance sheet date.* Amortization of intangible assets
153Annual Report 2024 of China Fangda Group Co. Ltd.
For intangible assets with finite useful lives the Company determines their useful lives upon acquisition and amortizes them
systematically and reasonably using the straight-line method over their useful lives. The amortization amount is included in the
current period's profit or loss according to the beneficiary projects or included in the cost of the related assets. The specific
amortization amount is the amount after the cost is deducted from the estimated residual value. For fixed assets for which
depreciation provision is made the depreciation rate will be determined after the accumulative depreciation provision amount is
deducted. The residual value of an intangible asset with limited useful life is treated as zero except where a third party undertakes
to purchase the intangible asset at the end of its useful life or to obtain expected residual value information based on the active
market which is likely to exist at the end of its useful life.Intangible assets with uncertain service life will not be amortized. At the end of each year the useful life of intangible assets
with uncertain useful life is reviewed and if there is evidence that the useful life of intangible assets is limited the useful life is
estimated and the system is reasonably amortized within the expected useful life.
(2) Scope of R&D expenditures and related accounting treatment
Specific standard for distinguish between research and development stage
* The Company takes the information and related preparatory activities for further development activities as the research
stage and the intangible assets expenditure in the research stage is included in the current profit and loss period.* The development activities carried out after the Company has completed the research stage as the development stage.Specific conditions for capitalization of expenditures in the development phase
Expenditures in the development phase can be recognized as intangible assets only when the following conditions are met:
A. It is technically feasible to complete the intangible asset so that it can be used or sold;
B. Have the intention to complete the intangible asset and use or sell it;
C. The way intangible assets generate economic benefits including the ability to prove that the products produced by the
intangible assets exist in the market or the intangible assets themselves exist in the market and the intangible assets will be used
internally which can prove their usefulness;
154Annual Report 2024 of China Fangda Group Co. Ltd.
D. Have sufficient technical financial and other resource support to complete the development of the intangible asset and
have the ability to use or sell the intangible asset;
E. The expenditure attributable to the development stage of the intangible asset can be reliably measured.
23. Assets impairment
The Group uses the cost mode to continue measuring the assets impairment to investment real estate fixed assets
construction in progress intangible assets and goodwill (except for the inventories investment real estate measured by the fair
value mode deferred income tax assets and financial assets). The method is determined as follows:
The Company judges whether there is a sign of impairment to assets on the balance sheet day. If such sign exists the
Company estimates the recoverable amount and conducts the impairment test. Impairment test is conducted annually for goodwill
generated by mergers and intangible assets that have not reached the useful condition no matter whether the impairment sign exists.The recoverable amount is determined by the higher of the net of fair value minus disposal expense and the present value of
the predicted future cash flow. The Company estimates the recoverable amount on the individual asset item basis; whether it is
hard to estimate the recoverable amount on the individual asset item basis determine the recoverable amount based on the asset
group that the assets belong to. The assets group is determined by whether the main cash flow generated by the Group is
independent from those generated by other assets or assets groups.When the recoverable amount of the assets or assets group is lower than its book value the Company writes down the book
value to the recoverable amount the write-down amount is accounted into the current income account and the assets impairment
provision is made.For goodwill impairment test the book value of goodwill generated by mergers is amortized through reasonable measures
since the purchase day to related asset groups; those cannot be amortized to related assets groups are amortized to related
combination of asset groups. The related asset groups or combination of asset groups refer to those that can benefit from the
synergistic effect of mergers and must not exceed to the reporting range determined by the Company.When the impairment test is conducted if there is sign of impairment to the asset group or combination of asset groups
related to goodwill first perform impair test for asset group or combination of asset groups without goodwill and calculate the
recoverable amount and recognize the related impairment loss. Then conduct impairment test on those with goodwill compare the
155Annual Report 2024 of China Fangda Group Co. Ltd.
book value with recoverable amount. If the recoverable amount is lower than the book value recognize the impairment loss of the
goodwill.Once recognized the asset impairment loss cannot be written back in subsequent accounting period.
24. Long-term amortizable expenses
The long-term deferred expenses shall be used to calculate the expenses that have occurred but should be borne by the
Company in the current and subsequent periods with a amortization period of more than one year. The Company's long-term
deferred expenses are amortized averagely during the benefit period.
25. Contract liabilities
See 15. Contract assets in Chapter X V. Important Accounting Policies and Accounting Estimates for details.
26. Staff remuneration
(1) Accounting of operational leasing
* Basic salary of employees (salary bonus allowance subsidy)
In the accounting period for which the staff and workers provide services the Company shall confirm the actual short-term
remuneration as liabilities and shall account for the current income and loss except as required or permitted by other accounting
standards.* Employee welfare
The employee benefits incurred by the Company shall be included in the current profit and loss or related asset costs
according to the actual amount incurred. Where the employee's benefit is non-monetary it shall be measured on the basis of fair
value.* Social insurance premiums and housing accumulation funds such as health insurance premiums work injury premiums
birth insurance premiums trade union funds and staff and education funds
The Company pays the medical insurance premiums work injury insurance premiums birth insurance premiums etc. social
insurance premiums and housing accumulation funds for the staff and workers as well as the union funds and the staff and
156Annual Report 2024 of China Fangda Group Co. Ltd.
workers education funds according to the regulations in the accounting period for which the staff and workers provide services
the corresponding salary amount of the staff and workers and confirms the corresponding liabilities which are included in the
current profit and loss or related asset costs.* Short-term paid leave
The Company accumulates the salary of the employees who are absent from work with pay when the employees provide
service thus increasing their future right of absence with pay. The Company confirms the salary of the employee related to the
absence of non-cumulative salary during the actual absence accounting period.* Short-term profit share program
If the profit-sharing plan meets the following conditions at the same time the Company shall confirm the salary payable to
the staff and workers:
A. The legal or presumptive obligation of the enterprise to pay the remuneration of its employees as a result of past matters;
B. The amount of employee compensation obligations due to the profit sharing plan can be reliably estimated.
(2) Accounting of post-employment welfare
The Company's post-employment benefit plan is defined contribution plan. Defined contribution plans include basic
endowment insurance unemployment insurance etc. During the accounting period when employees provide services for them the
Company shall recognize the deposit amount calculated according to the defined deposit plan as liabilities and include it in the
current profits and losses or related asset costs.
(3) Accounting of dismiss welfare
If the Company provides termination benefits to employees the employee compensation liabilities arising from the
termination benefits shall be recognized at the earliest of the following two and shall be included in the current profit and loss:
* An enterprise may not unilaterally withdraw the resignation benefits provided for by the dismissal plan or reduction
proposal;
157Annual Report 2024 of China Fangda Group Co. Ltd.
* When the enterprise recognizes the costs or expenses related to the reorganization involving the payment of resignation
benefits.
27. Anticipated liabilities
(1) Recognition standards of anticipated liabilities
When responsibilities occurred in connection to contingent issues and all of the following conditions are satisfied they are
recognized as expectable liability in the balance sheet:
* This responsibility is a current responsibility undertaken by the Company;
* Execution of this responsibility may cause financial benefit outflow from the Company;
* Amount of the liability can be reliably measured.
(2) Measurement of anticipated liabilities
Expected liabilities are initially measured at the best estimation on the expenses to exercise the current responsibility and
with considerations to the relative risks uncertainty and periodic value of currency. On each balance sheet date review the book
value of the estimated liabilities. Where there is conclusive evidence that the book value does not reflect the current best estimate
the book value is adjusted to the current best estimate.
28. Revenue
(1) General principles
Income is the total inflow of economic benefits formed in the daily activities of the Company which will lead to the
increase of shareholders' equity and has nothing to do with the capital invested by shareholders.The Company has fulfilled the performance obligation in the contract that is the revenue is recognized when the customer
obtains the control right of relevant goods. To obtain the control right of the relevant commodity means to be able to dominate the
use of the commodity and obtain almost all the economic benefits from it.
158Annual Report 2024 of China Fangda Group Co. Ltd.
If there are two or more performance obligations in the contract the Company will allocate the transaction price to each
single performance obligation according to the relative proportion of the separate selling price of the goods or services promised
by each single performance obligation on the start date of the contract and measure the income according to the transaction price
allocated to each single performance obligation.The transaction price refers to the amount of consideration that the Company is expected to be entitled to receive due to the
transfer of goods or services to customers excluding the amount collected on behalf of a third party. When determining the
contract transaction price if there is a variable consideration the Company shall determine the best estimate of the variable
consideration according to the expected value or the most likely amount and include it in the transaction price with the amount not
exceeding the accumulated recognized income when the relevant uncertainty is eliminated which is most likely not to have a
significant reversal. If there is a significant financing component in the contract the Company will determine the transaction price
according to the amount payable in cash when the customer obtains the control right of the commodity. The difference between
the transaction price and the contract consideration will be amortized by the effective interest method during the contract period. If
the interval between the control right transfer and the customer's payment is less than one year the Company will not consider the
financing component Points.If one of the following conditions is met the performance obligation shall be performed within a certain period of time;
otherwise the performance obligation shall be performed at a certain point of time:
* When the customer performs the contract in the Company he obtains and consumes the economic benefits brought by
the Company's performance;
* Customers can control the goods under construction during the performance of the contract;
* The goods produced by the Company in the process of performance have irreplaceable uses and the Company has the
right to collect money for the performance part that has been completed so far during the whole contract period.For the performance obligations performed within a certain period of time the Company shall recognize the revenue
according to the performance progress within that period except that the performance progress cannot be reasonably determined.The Company determines the progress of performance for the provision of services on the basis of the input (or output) method.When the progress of performance cannot be reasonably determined if the cost incurred by the Company is expected to be
159Annual Report 2024 of China Fangda Group Co. Ltd.
compensated the revenue shall be recognized according to the amount of cost incurred until the progress of performance can be
reasonably determined.For the performance obligation performed at a certain time point the Company recognizes the revenue at the time point
when the customer obtains the control right of relevant goods. In determining whether a customer has acquired control of goods or
services the Company will consider the following signs:
* The Company has the right to receive payment for the goods or services that is the customer has the obligation to pay
for the goods;
* The Company has transferred the legal ownership of the goods to the customer that is the customer has the legal
ownership of the goods;
* The Company has transferred the goods in kind to the customer that is the customer has possessed the goods in kind;
* The Company has transferred the main risks and rewards of the ownership of the goods to the customer that is the
customer has obtained the main risks and rewards of the ownership of the goods;
* The product has been accepted by the customer.Sales return clause
For the sales with sales return clauses when the customer obtains the control right of the relevant goods the Company shall
recognize the revenue according to the amount of consideration it is entitled to obtain due to the transfer of the goods to the
customer and recognize the amount expected to be returned due to the sales return as the estimated liability; at the same time the
Company shall deduct the estimated cost of recovering the goods according to the book value of the expected returned goods at the
time of transfer( The balance after deducting the value of the returned goods is recognized as an asset that is the cost of return
receivable which is carried forward by deducting the net cost of the above assets according to the book value of the transferred
goods at the time of transfer. On each balance sheet date the Company re estimates the return of future sales and re measures the
above assets and liabilities.Warranty obligations
160Annual Report 2024 of China Fangda Group Co. Ltd.
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:
161Annual Report 2024 of China Fangda Group Co. Ltd.
* If the contract change increases the clearly distinguishable construction service and contract price and the new contract
price reflects the separate price of the new construction service the Company will treat the contract change as a separate contract
for accounting;
* If the contract change does not belong to the above-mentioned situation (1) and there is a clear distinction between the
transferred construction service and the non-transferred construction service on the date of contract change the Company will
regard it as the termination of the original contract and at the same time combine the non performance part of the original
contract and the contract change part into a new contract for accounting treatment;
* If the contract change does not belong to the above situation (1) and there is no clear distinction between the transferred
construction services and the non transferred construction services on the date of contract change the Company will take the
contract change part as an integral part of the original contract for accounting treatment and the resulting impact on the recognized
income will be adjusted to the current income on the date of contract change.
(2) The specific methods of revenue recognition of the Company are as follows:
* Commodity sales contract
The commodity sales contract between the Company and the customer includes the performance obligation of transferring
curtain wall materials screen door materials electric energy etc. which belongs to the performance obligation at a certain time
point.Revenue from domestic sales of products is recognized at the time when the customer obtains the right of control of the
goods on the basis of comprehensive consideration of the following factors: the Company has delivered the products to the
customer according to the contract the customer has accepted the goods the payment for goods has been recovered or the receipt
has been obtained and the relevant economic benefits are likely to flow in the main risks and rewards of the ownership of the
goods have been transferred the legal ownership has been transferred;
The following conditions should be met for the recognition of export product revenue: the Company has declared the
product according to the contract obtained the bill of lading collected the payment for goods or obtained the receipt certificate
and the relevant economic benefits are likely to flow in the main risks and rewards of the ownership of goods have been
transferred and the legal ownership of goods has been transferred.
162Annual Report 2024 of China Fangda Group Co. Ltd.
* Service contract
The service contract between the Company and its customers includes the performance obligations of metro platform screen
door operation maintenance curtain wall maintenance and property services. As the Company's performance at the same time the
customers obtain and consume the economic benefits brought by the Company's performance the Company takes it as the
performance obligation within a certain period of time and allocates it equally during the service provision period.* Engineering contract
The project contract between the Company and the customer includes the performance obligations of curtain wall project
and metro platform screen door project construction. As the customer can control the goods under construction in the process of
the Company's performance the Company takes them as the performance obligations within a certain period of time and
recognizes the income according to the performance progress except that the performance progress cannot be reasonably
determined. The Company determines the performance schedule of providing construction services according to the input method.The performance schedule shall be determined according to the proportion of the actual contract cost to the estimated total contract
cost.* Real estate sales contract
The income of the Company's real estate development business is recognized when the control of the property is transferred
to the customer. The income is recognized when the customer obtains the physical ownership or legal ownership of the completed
property and the Company has obtained the current right of collection and is likely to recover the consideration. When confirming
the contract transaction price if the financing component is significant the Company will adjust the contract commitment
consideration according to the financing component of the contract.
(3) Adoption of different business models for the same type of business involving different revenue recognition and
measurement methods
There is no difference in revenue recognition due to the adoption of different accounting policies for similar businesses.
29. Contract costs
Contract cost is divided into contract performance cost and contract acquisition cost.
163Annual Report 2024 of China Fangda Group Co. Ltd.
The cost incurred by the Company in performing the contract shall be recognized as an asset when the following conditions
are met simultaneously:
The cost is directly related to a current or expected contract including direct labor direct materials manufacturing expenses
(or similar expenses) clearly borne by the customer and other costs incurred only due to the contract;
* This cost increases the Company's future resources for fulfilling its performance obligations.* The cost is expected to be recovered.If the incremental cost incurred by the Company to obtain the contract is expected to be recovered it shall be recognized as
an asset as the contract acquisition cost.The assets related to the contract cost shall be amortized on the same basis as the income from goods or services related to
the assets; however if the amortization period of the contract acquisition cost is less than one year the Company shall include it in
the current profit and loss when it occurs.If the book value of the assets related to the contract cost is higher than the difference between the following two items the
Company will make provision for impairment for the excess part and recognize it as the loss of asset impairment and further
consider whether the estimated liabilities related to the loss contract should be made:
* The residual consideration expected to be obtained due to the transfer of goods or services related to the asset;
* The estimated cost to be incurred for the transfer of the relevant goods or services.If the above provision for impairment of assets is subsequently reversed the book value of the asset after reversal shall not
exceed the book value of the asset on the reversal date without provision for impairment.The contract performance cost recognized as an asset with an amortization period of no more than one year or one normal
business cycle at the time of initial recognition shall be listed in the "inventory" item and the amortization period of no more than
one year or one normal business cycle at the time of initial recognition shall be listed in the "other non-current assets" item.The contract acquisition cost recognized as an asset shall be listed in the item of "other current assets" when the
amortization period does not exceed one year or one normal business cycle at the time of initial recognition and listed in the item
164Annual Report 2024 of China Fangda Group Co. Ltd.
of "other non-current assets" when the amortization period exceeds one year or one normal business cycle at the time of initial
recognition.
30. Government subsidy
(1) Government subsidy
Government subsidies are recognized when the following conditions are met:
* Requirements attached to government subsidies;
* The Company can receive government subsidies.
(2) Government subsidy
When a government subsidy is monetary capital it is measured at the received or receivable amount. None monetary capital
are measured at fair value; if no reliable fair value available recognized at RMB1.
(3) Recognition of government subsidies
* Assets-related
Government subsidies related to assets are obtained by the Company to purchase build or formulate in other manners long-
term assets; or subsidies related to benefits. If the asset-related government subsidy is recognized as deferred gain should be
recorded in gain and loss in the service life. Government subsidy measured at the nominal amount is accounted into current
income account. If the relevant assets are sold transferred scrapped or damaged before the end of their useful life the unallocated
relevant deferred income balance shall be transferred to the profit and loss of the current period of disposition of the assets.Gain-related government subsidy should be accounted as follows:
The Company divides government subsidies into assets-related and earnings-related government subsidies. Gain-related
government subsidy should be accounted as follows:
Subsidy that will be used to compensate related future costs or losses should be recognized as deferred gain and recorded in
the gain and loss of the current report and offset related cost;
165Annual Report 2024 of China Fangda Group Co. Ltd.
Subsidy that is used to compensate existing cost or loss should be recorded in the gain and loss of the current period or
offset related cost.For government subsidies that include both asset-related and income-related parts separate different parts for accounting
treatment; It is difficult to distinguish between the overall classification of government subsidies related to benefits.Government subsidy related to routine operations should be recorded in other gains or offset related cost. Government
subsidy not related to routine operations should be recorded in non-operating income or expense.* Policy preferential loan discount
The policy-based preferential loan obtained has interest subsidy. If the government allocates the interest-subsidy funds to
the lending bank the loan amount actually received will be used as the entry value of the loan and the borrowing cost will be
calculated based on the loan principal and policy-based preferential interest rate.If the government allocates the interest-bearing funds directly to the Group discount interest will offset the borrowing costs.* Government subsidy refund
When a confirmed government subsidy needs to be returned the book value of the asset is adjusted against the book value
of the relevant asset at initial recognition. If there is a related deferred income balance the book balance of the related deferred
income is written off and the excess is credited to the current profit or loss; In other cases it is directly included in the current
profit and loss.
31. Differed income tax assets and differed income tax liabilities
The Company uses the temporary difference between the book value of the assets and liabilities on the balance sheet day
and the tax base and the liabilities method to recognize the deferred income tax. 26. Deferred income tax assets and deferred
income tax liabilities
(1) Deferred income tax assets
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
166Annual Report 2024 of China Fangda Group Co. Ltd.
deferred income tax assets provided that the Company is likely to obtain future taxable income for deductible temporary
discrepancies deductible losses and tax offsets.At the same time the impact on income tax of deductible temporary discrepancies resulting from the initial recognition of
assets or liabilities in transactions or matters with the following characteristics is inconclusive as deferred income tax assets:
A. The transaction is not a business combination;
B. the transaction is not a merger and the transaction does not affect the accounting profit or taxable proceeds;
However for individual transactions that simultaneously satisfy the above two conditions and where the initially recognized
assets and liabilities result in equal taxable temporary differences and deductible temporary differences the exemption for not
recognizing deferred tax liabilities and deferred tax assets upon initial recognition does not apply. For the taxable temporary
differences and deductible temporary differences arising from the initial recognition of assets and liabilities in this transaction the
Company recognizes the corresponding deferred tax liabilities and deferred tax assets at the time the transaction occurs.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
167Annual Report 2024 of China Fangda Group Co. Ltd.
All provisional differences in taxable income of the Company shall be measured on the basis of the estimated income tax
rate for the period of transfer-back and shall be recognized as deferred income tax liabilities except that:
At the same time the impact on income tax of deductible temporary discrepancies resulting the initial recognition of assets
or liabilities in transactions or matters with the following characteristics is inconclusive as deferred income tax Liabilities:
A. Initial recognition of goodwill;
B. Initial recognition of goodwill or of assets or liabilities generated in transactions with the following features: the
transaction is not a merger and the transaction does not affect the accounting profit or taxable proceeds;
* In the event of temporary discrepancy of deductible investment related to subsidiaries Joint venture joint ventures and
meeting the two conditions the amount of impact (talent) on income tax shall be deemed as deferred income tax assets:
A. The Company is able to control the time of temporary discrepancy transfers;
B Temporary discrepancies are likely to be reversed in the foreseeable future;
(3) Deferred income tax assets
(1) Deferred income tax liabilities or assets associated with enterprise consolidation
Temporary difference of taxable tax or deductible temporary difference generated by enterprise merger under non-same
control. When deferred income tax liability or deferred income tax asset is recognized related deferred income tax expense (or
income) is usually adjusted as recognized goodwill in enterprise merger.* Amount of shares paid and accounted as owners' equity
Except for the adjustment goodwill generated by mergers or deferred income tax related to transactions or events directly
accounted into the owners' equity income tax is accounted as income tax expense into the current gain/loss account. The effects of
temporary discrepancy on income tax include the following: Other integrated benefits such as fair value change of financial assets
available for sale retroactive adjustment of accounting policy changes or retroactive restatement of accounting error correction
discrepancy to adjust the initial retained income and mixed financial instruments including liabilities and equity.
168Annual Report 2024 of China Fangda Group Co. Ltd.
* 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.* Temporary difference caused by merger offset
If there is a temporary difference between the book value of assets and liabilities in the consolidated balance sheet and the
taxable basis of the taxpayer due to the offset of the unrealized internal sales gain or loss the deferred income tax asset or the
deferred income tax liability is confirmed in the consolidated balance sheet and the income tax expense in the consolidated profit
statement is adjusted with the exception of the deferred income tax related to the transaction or event directly included in the
owner's equity and the merger of the enterprise.* Share payment settled by equity
If the tax law provides for allowable pre-tax deduction of expenses related to share payment within the period for which the
cost and expense are recognized in accordance with the accounting standards the Company shall calculate the tax basis and
169Annual Report 2024 of China Fangda Group Co. Ltd.
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.* Dividends related to financial instruments classified as equity instruments
For financial instruments classified as equity instruments with the Company as the issuer where the related dividend
expenses are deductible before corporate income tax according to relevant tax policy provisions the Company recognizes the
income tax impact related to the dividends when recognizing the payable dividends. If the distributed profits are derived from
transactions or events that previously resulted in profit or loss the income tax impact of the dividends is included in the current
period's profit or loss. If the distributed profits are derived from transactions or events previously recognized in owners' equity the
income tax impact of the dividends is included in the owners' equity items.
(4) Basis for presentation of deferred tax assets and deferred tax liabilities on a net basis
The deferred income tax assets and deferred income tax liabilities of the Company are presented as a net amount after
offsetting when the following conditions are met simultaneously:
The Company has a legal right to offset current income tax assets and current income tax liabilities on a net basis.The deferred income tax assets and deferred income tax liabilities are related to income taxes levied by the same tax
authority on the same taxable entity or are related to income taxes levied by different tax authorities but the significant deferred
income tax assets and deferred income tax liabilities will be settled on a net basis for current income taxes or simultaneous
acquisition of assets and settlement of liabilities within each future period in which the related taxable entity intends to settle the
current income tax assets and liabilities on a net basis.
32. Leasing
(1) Identification of lease
On the commencement date of the contract the Company evaluates whether the contract is a lease or includes a lease. If one
party in the contract transfers the right to control the use of one or more identified assets within a certain period in exchange for
consideration the contract is a lease or includes a lease. In order to determine whether the contract transfers the right to control the
170Annual Report 2024 of China Fangda Group Co. Ltd.
use of the identified assets within a certain period the Company evaluates whether the customers in the contract have the right to
obtain almost all the economic benefits arising from the use of the identified assets during the use period and have the right to
dominate the use of the identified assets during the use period.
(2) Separate identification of lease
If the contract includes multiple separate leases at the same time the Company will split the contract and conduct
accounting treatment for each separate lease. If the following conditions are met at the same time the right to use the identified
asset constitutes a separate lease in the contract: * the lessee can profit from using the asset alone or together with other easily
available resources; * The asset is not highly dependent or highly related to other assets in the contract.
(3) Accounting treatment method of the Company as lessee
On the beginning date of the lease term the Company recognizes the lease with a lease term of no more than 12 months and
excluding the purchase option as a short-term lease; When a single leased asset is a brand-new asset the lease with lower value is
recognized as a low value asset lease. If the Company sublets or expects to sublet the leased assets the original lease is not
recognized as a low value asset lease.For all short-term leases and low value asset leases the Company will record the lease payment amount into the relevant
asset cost or current profit and loss according to the straight-line method (or other systematic and reasonable methods) in each
period of the lease term.In addition to the above short-term leases and low value asset leases with simplified treatment the Company recognizes the
right to use assets and lease liabilities for the lease on the beginning date of the lease term.* Use right assets
The term "right to use assets" refers to the right of the lessee to use the leased assets during the lease term.At the beginning of the lease term the right of use assets are initially measured at cost. This cost includes:
The initial measurement amount of lease liabilities;
For the lease payment paid on or before the beginning of the lease term if there is lease incentive the relevant amount of
lease incentive enjoyed shall be deducted;
Initial direct expenses incurred by the lessee;
171Annual Report 2024 of China Fangda Group Co. Ltd.
The estimated cost incurred by the lessee for dismantling and removing the leased assets restoring the site where the
leased assets are located or restoring the leased assets to the state agreed in the lease terms. The Company recognizes and
measures the cost in accordance with the recognition standards and measurement methods of estimated liabilities. See 27.Estimated liabilities in Chapter X V. important accounting policies and accounting estimates for details. If the above
costs are incurred for the production of inventories they will be included in the cost of inventories.Depreciation of right of use assets is accrued by using the straight-line method. If it can be reasonably determined that the
ownership of the leased asset will be obtained at the expiration of the lease term the depreciation rate shall be determined
according to the asset category of the right to use and the estimated net residual value rate within the expected remaining service
life of the leased asset; If it is impossible to reasonably determine that the ownership of the leased asset will be obtained at the
expiration of the lease term the depreciation rate shall be determined according to the asset category of the right of use within the
shorter of the lease term and the remaining service life of the leased asset.* Lease liabilities
The lease liabilities are initially measured Company shall according to the present value of the unpaid lease payments at the
beginning of the lease term. The lease payment includes the following five items:
Fixed payment amount and substantial fixed payment amount. If there is lease incentive the relevant amount of lease
incentive shall be deducted;
Variable lease payments depending on index or ratio;
The exercise price of the purchase option provided that the lessee reasonably determines that the option will be
exercised;
The amount to be paid for exercising the option to terminate the lease provided that the lease term reflects that the lessee
will exercise the option to terminate the lease;
The amount expected to be paid according to the residual value of the guarantee provided by the lessee.When calculating the present value of lease payments the implicit interest rate of the lease is used as the discount rate. If
the implicit interest rate of the lease cannot be determined the incremental borrowing interest rate of the Company is used as the
discount rate. The difference between the lease payment amount and its present value is regarded as unrecognized financing
expenses and the interest expenses are recognized according to the discount rate of the present value of the lease payment amount
during each period of the lease term and included in the current profit and loss. The amount of variable lease payments not
included in the measurement of lease liabilities shall be included in the current profit and loss when actually incurred.After the beginning date of the lease term when the actual fixed payment amount changes the expected payable amount of
the guaranteed residual value changes the index or ratio used to determine the lease payment amount changes the evaluation
172Annual Report 2024 of China Fangda Group Co. Ltd.
results or actual exercise of the purchase option renewal option or termination option changes the Company remeasures the lease
liability according to the present value of the changed lease payment amount And adjust the book value of the right to use assets
accordingly.
(4) Accounting treatment method of the Company as lessor
On the lease commencement date the Company classifies leases that have substantially transferred almost all the risks and
rewards related to the ownership of the leased assets as financial leases and all other leases are operating leases.* Operating lease
During each period of the lease term the Company recognizes the lease receipts as rental income according to the straight-
line method (or other systematic and reasonable methods) and the initial direct expenses incurred are capitalized amortized on the
same basis as the recognition of rental income and included in the current profit and loss by stages. The variable lease payments
obtained by the Company related to operating leases that are not included in the lease receipts are included in the current profits
and losses when actually incurred.* Finance lease
On the lease beginning date the Company recognizes the financial lease receivables according to the net amount of the
lease investment (the sum of the unsecured residual value and the present value of the lease receipts not received on the lease
beginning date discounted according to the lease embedded interest rate) and terminates the recognition of the financial lease
assets. During each period of the lease term the Company calculates and recognizes the interest income according to the interest
rate embedded in the lease.The amount of variable lease payments obtained by the Company that are not included in the measurement of net lease
investment shall be included in the current profit and loss when actually incurred.
(5) Accounting treatment of lease change
* Change of lease as a separate lease
If the lease changes and meets the following conditions at the same time the Company will treat the lease change as a
separate lease for accounting: a. the lease change expands the lease scope by increasing the use right of one or more leased assets;
173Annual Report 2024 of China Fangda Group Co. Ltd.
B. The increased consideration is equivalent to the amount adjusted according to the conditions of the contract at the separate price
for most of the expansion of the lease scope.* The lease change is not treated as a separate lease
A. The Company as lessee
On the effective date of the lease change the Company reconfirmed the lease term and discounted the changed lease
payment at the revised discount rate to re-measure the lease liability. When calculating the present value of the lease payment after
the change the implicit interest rate of the lease during the remaining lease period shall be used as the discount rate; If it is
impossible to determine the implicit interest rate of the lease for the remaining lease period the incremental loan interest rate on
the effective date of the lease change shall be used as the discount rate.The impact of the above lease liability adjustment shall be accounted for according to the following circumstances:
If the lease scope is reduced or the lease term is shortened due to the lease change the book value of the right to use
assets shall be reduced and the relevant gains or losses of partial or complete termination of the lease shall be included
in the current profits and losses;
For other lease changes the book value of the right to use assets shall be adjusted accordingly.The Company as leasor
If the operating lease is changed the Company will treat it as a new lease for accounting from the effective date of the
change and the amount of lease receipts received in advance or receivable related to the lease before the change is regarded as the
amount of new lease receipts.If the change of financial lease is not accounted for as a separate lease the Company will deal with the changed lease under
the following circumstances: if the change of lease takes effect on the lease commencement date and the lease will be classified as
an operating lease the Company will account for it as a new lease from the effective date of lease change and take the net lease
investment before the effective date of lease change as the book value of leased assets; If the lease change takes effect on the lease
commencement date the lease will be classified as a financial lease and the Company will conduct accounting treatment in
accordance with the provisions on modifying or renegotiating the contract.
(6) Sale and lease-back
174Annual Report 2024 of China Fangda Group Co. Ltd.
The Company assesses and determines whether the asset transfer in the sale and leaseback transaction is a sale in
accordance with the provisions of 28. Income in Chapter X V Important accounting policies and accounting estimates.* The Company as seller (lessee)
If the asset transfer in the sale and leaseback transaction does not belong to sales the Company will continue to recognize
the transferred assets recognize a financial liability equal to the transfer income and conduct accounting treatment for the
financial liability in accordance with 10。 Financial instruments in Chapter X V Important accounting policies and accountingestimates. If the asset transfer belongs to sales the Company measures the right to use assets formed by sale and leaseback
according to the part of the book value of the original assets related to the right to use obtained by leaseback and only recognizes
the relevant gains or losses on the rights transferred to the lessor.* The Company as buyer (lessor)
If the asset transfer in the sale and leaseback transaction does not belong to sales the Company does not recognize the
transferred asset but recognizes a financial asset equal to the transfer income and carries out accounting treatment on the financial
asset in accordance with 10. Financial instruments in Chapter X V. Important accounting policies and accounting estimates. If the
asset transfer belongs to sales the Company shall conduct accounting treatment for asset purchase and asset lease in accordance
with other applicable accounting standards for business enterprises.
33. Other significant accounting policies and estimates
(1) Accounting of hedging
(1.1) Classification of inventories
The Company classifies hedges into fair value hedges and cash flow hedges.* Fair value hedge. It refers to hedging activities conducted to mitigate the risk of changes in the fair value of recognized
assets or liabilities unrecognized firm commitments or components of the aforementioned items. The fair value changes are
caused by specific risks that will impact the Company's profit or other comprehensive income.
175Annual Report 2024 of China Fangda Group Co. Ltd.
* 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.
(1.2) Hedging tools and hedged projects
Hedging means a financial instrument designated by the Company for the purpose of hedging whose fair value or cash flow
variation is expected to offset the fair value or cash flow variation of the hedged item including:
* Financial liabilities measured at fair value with variations accounted into current income account Check-out options can
only be used as a hedging tool if the option is hedged including those embedded in a hybrid contract. Derivatives embedded in a
hybrid contract but not split cannot be used as separate hedging tools.* Non-derivative financial assets or non-derivative financial liabilities that are measured at fair value and whose changes
are included in the current profit and loss but designated as fair value and whose changes are included in the current profit and
loss and their own credit risk changes caused by changes in fair value except for financial liabilities included in other
comprehensive income.Own equity instruments are not financial assets or financial liabilities and cannot be used as hedging instruments.A hedged item refers to an item that exposes the Company to the risk of changes in fair value or cash flow and is designated
as the hedged object and can be reliably measured. The Company designates the following individual projects project portfolios or
their components as hedged projects:
* Confirmed assets or liabilities.* Confirmed commitments that have not yet been confirmed. Confirmed commitment refers to a legally binding
agreement to exchange a specific amount of resources at an agreed price on a specific date or period in the future.* Expected transactions that are likely to occur. Anticipated transactions refer to transactions that have not yet been
committed but are expected to occur.* Net investment in overseas operations.
176Annual Report 2024 of China Fangda Group Co. Ltd.
The above-mentioned project components refer to the parts that are less than the overall fair value or cash flow changes of
the project. The Company designates the following project components or their combinations as hedged items:
* The part of the change in fair value or cash flow (risk component) that is only caused by one or more specific risks in the
overall fair value or cash flow changes of the project. According to the assessment in a specific market environment the risk
component should be able to be individually identified and reliably measured. The risk component also includes the part where the
fair value or cash flow of the hedged item changes only above or below a specific price or other variables.* One or more selected contractual cash flows.* The component of the nominal amount of the project that is the specific part of the whole amount or quantity of the
project may be a certain proportion of the whole project or may be a certain level of the whole project. If a certain level includes
early repayment rights and the fair value of the early repayment rights is affected by changes in the risk of the hedge the level
shall not be designated as the hedged item of the fair value hedge but in the measurement of the hedged item except when the fair
value has included the influence of the prepayment right.
(1.3) Evaluation of hedging relationship
When the hedging relationship is initially specified the Group officially specifies the related hedging relationships with
official documents recording the hedging relationships risk management targets and hedging strategies. This document sets out
the hedging tools hedged items the nature of hedged risks and the Company's assessment of hedged effectiveness. Hedging
means a financial instrument designated by the Company for the purpose of hedging whose fair value or cash flow variation is
offset the fair value or cash flow variation of the hedged item including: Such hedges are continuously evaluated on and after the
initial specified date to meet the requirements for hedging validity.If the hedging instrument has expired been sold the contract is terminated or exercised (but the extension or replacement as
part of the hedging strategy is not treated as expired or contract termination) or the risk management objective changes resulting
in hedging The relationship no longer meets the risk management objectives or the economic relationship between the hedged
item and the hedging instrument no longer exists or the impact of credit risk begins to dominate in the value changes caused by
the economic relationship between the hedged item and the hedging instrument or when the hedge no longer meets the other
conditions of the hedge accounting method the Company terminates the use of hedge accounting.
177Annual Report 2024 of China Fangda Group Co. Ltd.
If the hedging relationship no longer meets the requirements for hedging effectiveness due to the hedging ratio but the risk
management objective of the designated hedging relationship has not changed the Company shall rebalance the hedging
relationship.
(1.4) Revenue the of revenue recognition and measurement
If the conditions for applying hedge accounting method are met it shall be handled according to the following methods:
* Fair value hedging
Gains or losses arising from hedging instruments are recognized in the current period's income statement. If the hedging is
conducted for specified non-derivative equity investments (or components thereof) measured at fair value with changes in fair
value recognized in other comprehensive income gains or losses from the hedging instruments are recognized in other
comprehensive income. Gains or losses arising from the hedged items due to the hedging risk exposure are recognized in the
income statement. At the same time the carrying amount of the designated hedged items that are not measured at fair value is
adjusted. If the hedged item is a specified non-derivative equity investment (or component thereof) measured at fair value with
changes in fair value recognized in other comprehensive income gains or losses resulting from the hedging risk exposure are
recognized in other comprehensive income and the carrying amount of the hedged item has already been measured at fair value
and does not require adjustment.Regarding fair value hedges related to financial instruments (or components thereof) measured at amortized cost any
adjustments made to the carrying amount of the hedged item are amortized using the effective interest rate recalculated from the
date of the commencement of amortization and recognized in the income statement. The amortization date for adjustments should
begin from the adjustment date and should not be later than the point at which hedging gains and losses are adjusted upon
termination of the hedged item. For hedged items that are financial assets (or components thereof) measured at fair value with
changes in fair value recognized in other comprehensive income the accumulated hedging gains or losses should be amortized in
the same manner and recognized in the income statement. However the carrying amount of the financial assets (or components
thereof) should not be adjusted.For hedged items that are unrecognized firm commitments (or components thereof) the cumulative fair value changes
caused by the hedging risk after the hedging relationship is designated should be recognized as an asset or liability. The related
gains or losses should be recognized in the income statement. When fulfilling a firm commitment and acquiring an asset or
178Annual Report 2024 of China Fangda Group Co. Ltd.
assuming a liability the initial recognized amount of the asset or liability should be adjusted to include the cumulative fair value
changes of the designated hedged item that have been recognized.* Cash flow hedging
The part of hedging tool gains or losses that is valid for hedging is recognized as other comprehensive income as a cash
flow hedging reserve and the part that is invalid for hedging (that is other gains or losses after deducting other comprehensive
income) are counted Into the current profit and loss. The amount of cash flow hedging reserve is determined according to the
lower of the absolute amounts of the following two items: * accumulated gains or losses of hedging instruments since the hedging.The amount in the effective arbitrage is recognized by the accumulative gains or losses from the starting of arbitrage and
accumulative changes to the current value of future forecast cash flows from the start of arbitrage.If the expected transaction of the hedged asset is subsequently recognized as a non-financial asset or non-financial liability
or if the expected transaction of the non-financial asset or non-financial liability forms a defined commitment to the applicable fair
value hedge accounting the amount of the cash flow hedge reserve originally recognized in the other consolidated income is
transferred out to account for the initial recognized amount of the asset or liability. For the remaining cash flow hedges during the
same period when the expected cash flow to be hedged affects the profit and loss if the expected sales occur the cash flow hedge
reserve recognized in other comprehensive income is transferred out and included in the current profit and loss.
(2) Repurchase of the Company's shares
* In the event of a reduction in the Company's share capital as approved by legal procedure the Company shall reduce the
share capital by the total amount of the written-off shares adjust the owner's equity by the difference between the price paid by the
purchased stocks (including transaction costs) and the total amount of the written-off shares offset the capital reserve (share
capital premium) surplus reserve and undistributed profits in turn; A portion of a capital reserve (share capital premium) that is
less than the total face value and less than the total face value.* The total expenditure of the repurchase shares of the Company which is managed as an inventory share before they are
cancelled or transferred is converted to the cost of the inventory shares.
179Annual Report 2024 of China Fangda Group Co. Ltd.
* Increase in the capital reserve (capital premium) at the time of transfer of an inventory unit the portion of the transfer
income above the cost of the inventory unit; Lower than the inventory stock cost the capital reserve (share capital premium)
surplus reserve undistributed profits in turn.
(3) Measurement of Fair Value
Fair value refers to the amount of asset exchange or liabilities settlement by both transaction parties familiar with the
situation in a fair deal on a voluntary basis.The Company measures the fair value of related assets or liabilities at the prices in the main market. If there is no major
market the Company measures the fair value of the relevant assets or liabilities at the most favorable market prices. The Group
uses assumptions that market participants use to maximize their economic benefits when pricing the asset or liability.The main market refers to the market with the highest transaction volume and activity of the related assets or liabilities. The
most favorable market means the market that can sell the related assets at the highest amount or transfer the related liabilities at the
lowest amount after considering the transaction cost and transportation cost.For financial assets or liabilities in an active market The Company determines their fair value based on quotations in the
active market. If there is no active market the Company uses evaluation techniques to determine the fair value.For the measurement of non-financial assets at fair value the ability of market participants to use the assets for optimal
purposes to generate economic benefits or the ability to sell the assets to other market participants that can be used for optimal
purposes to generate economic benefits.* Valuation technology
The Company adopts valuation techniques that are applicable in the current period and are supported by sufficient data and
other information. The valuation techniques used mainly include market method income method and cost method. The Company
uses a method consistent with one or more of the valuation techniques to measure fair value. If multiple valuation techniques are
used to measure fair value the reasonableness of each valuation result shall be considered and the fair value shall be selected as
the most representative of fair value under the current circumstances. The amount of value is regarded as fair value.The Company equipment are applicable in the current circumstances and have sufficient available data and other
information to support the use of the relevant observable input values prioritized. Unobservable input values are used only when
the observable input value cannot be obtained or is not feasible. Observable input values are input values that can be obtained from
market data. The Group uses assumptions that market participants use to maximize their economic benefits when pricing the asset
180Annual Report 2024 of China Fangda Group Co. Ltd.
or liability. Non-observable input values are input values that cannot be obtained from market data. The input value is obtained
based on the best information available on assumptions used by market participants in pricing the relevant asset or liability.* Fair value hierarchy
This company divides the input value used in fair value measurement into three levels and first uses the first level input
value then uses the second level input value and finally uses the third level input value. First level: quotation of same assets or
liabilities in an active market (unadjusted) The second level input value is a directly or indirectly observable input value of the
asset or liability in addition to the first level input value. The input value of the third level is the unobservable input value of the
related asset or liability.
(4) Significant accounting judgment and estimate
The Company continuously reviews significant accounting judgment and estimate adopted for the reasonable forecast of
future events based on its historical experience and other factors. Significant accounting judgment and assumptions that may lead
to major adjustment of the book value of assets and liabilities in the next accounting year are listed as follows:
Classification of financial assets
The major judgements involved in the classification of financial assets include the analysis of business model and contract
cash flow characteristics.The company determines the business mode of managing financial assets at the level of financial asset portfolio taking into
account such factors as how to evaluate and report financial asset performance to key managers the risks that affect financial asset
performance and how to manage it and how to obtain remuneration for related business managers.When the Company assesses whether the contractual cash flow of financial assets is consistent with the basic borrowing
arrangement there are the following main judgments: whether the principal may change due to early repayment and other reasons
during the duration of the period or the amount of change; whether the interest Including the time value of money credit risk
other basic borrowing risks and consideration of costs and profits. For example does the amount paid in advance reflect only the
unpaid principal and the interest based on the unpaid principal as well as the reasonable compensation paid for early termination
of the contract.Measurement of expected credit losses of accounts receivable
The Company calculates the expected credit loss of accounts receivable through the risk exposure of accounts receivable
default and the expected credit loss rate and determines the expected credit loss rate based on the default probability and the
181Annual Report 2024 of China Fangda Group Co. Ltd.
default loss rate. When determining the expected credit loss rate the Company uses internal historical credit loss experience and
other data combined with current conditions and forward-looking information to adjust the historical data. When considering
forward-looking information the indicators used by the Company include the risks of economic downturn changes in the external
market environment technological environment and customer conditions. The Company regularly monitors and reviews
assumptions related to the calculation of expected credit losses.Deferred income tax assets
If there is adequate taxable profit to deduct the loss the deferred income tax assets should be recognized by all the unused
tax loss. This requires the management to make a lot of judgment to forecast the time and amount of future taxable profit and
determine the amount of the deferred tax assets based on the taxation strategy.Income recognition
The Company's revenue from providing curtain wall construction and metro platform screen door installation services is
recognized over a period of time. The recognition of the income and profit of such engineering installation services depends on the
Company's estimation of the contract results and performance progress. If the actual amount of total revenue and total cost is
higher or lower than the estimated value of the management it will affect the amount of revenue and profit recognition of the
Company in the future.Engineering contract
The management shall make relevant judgment to confirm the income and expenses of project contracting business
according to the performance progress. If losses are expected to occur in the project contract such losses shall be recognized as
current expenses. The management of the Company estimates the possible losses according to the budget of the project contract.The Company determines the transaction price according to the terms of the contract and in combination with previous customary
practices and considers the influence of variable consideration major financing components in the contract and other factors.During the performance of the contract the Company continuously reviews the estimated total contract revenue and the estimated
total contract cost. When the initial estimate changes such as contract changes claims and awards the estimated total contract
revenue and the estimated total contract cost are revised. When the estimated total contract cost exceeds the total contract revenue
the main business cost and estimated liabilities shall be recognized according to the loss contract to be executed.Estimate of fair value
182Annual Report 2024 of China Fangda Group Co. Ltd.
The Company uses fair value to measure investment real estate and needs to estimate the fair value of investment real estate
at least quarterly. This requires the management to reasonably estimate the fair value of the investment real estate with the help of
valuation experts.Development cost
For property that has been handed over with income recognized but whose public facilities have not been constructed or not
been completed the management will estimate the development cost for the part that has not been started according to the budget
to reflect the operation result of the property sales.
34. Major changes in accounting policies and estimates
1. Changes in important accounting policies
□Applicable □ Inapplicable
In RMB
Names of financial statement
items significantly affected
Account policy changes and reasons Affected amount
for the comparable period of
fiscal year 2023
On October 25 2023 theMinistry of Finance issued the Interpretation
No. 17 of the Accounting Standards for Business Enterprises (CK
No No
[2023] No. 21 hereinafter referred to as Interpretation No. 17) which
will be implemented from January 1 2024.In March 2024 the Ministry of Finance issued the Compilation of
Application Guidelines for Enterprise Accounting Standards 2024 and Sales expense -7479549.47
on December 6 2024 released Interpretation No. 18 of the Accounting
Standards for Business Enterprises which stipulates that warranty Operating cost 7479549.47
expenses should be included in the operating costs.* Implement the interpretation of accounting standards for Business Enterprises No. 17
On October 25 2023 the Ministry of Finance issued the Interpretation No. 17 of the Accounting Standards for Business
Enterprises (CK [2023] No. 21 hereinafter referred to as Interpretation No. 17) which will be implemented from January 1 2024.Starting from January 1 2024 the Company implements the provisions of Interpretation No. 17.A. On the classification of current liabilities and non-current liabilities
This provision has no significant impact on the Company's financial statements for the reporting period.B. On the disclosure of supplier financing arrangements
183Annual Report 2024 of China Fangda Group Co. Ltd.
In accordance with the requirements of Interpretation No. 17 the Company's financial report under section VII "Notes to
the Consolidated Financial Statements" item 62 "(4) Supplier Financing Arrangements" has disclosed relevant information on
supplier financing arrangements for the year 2024.C. On the accounting treatment of sale and leaseback transactions
This provision has no significant impact on the Company's financial statements for the reporting period.* Reclassification of warranty expenses
In March 2024 the Ministry of Finance issued the Compilation of Application Guidelines for Enterprise Accounting
Standards 2024 and on December 6 2024 released Interpretation No. 18 of the Accounting Standards for Business Enterprises
which stipulates that warranty expenses should be included in the operating costs.Starting from the fiscal year 2024 the Company will implement this provision by including warranty expenses in the
operating costs. The implementation of this accounting treatment provision has a cumulative impact of RMB0 on the retained
earnings as reported in the earliest period of the financial statements. The adjustments to the relevant items in the comparative
financial statements for the year 2023 for both the consolidated and the parent company are as follows:
In RMB
For 2023 (consolidated) For 2023 (parent company)
Affected item Before After
Before adjustment After adjustment
adjustment adjustment
Sales expense 58488714.76 51009165.29 There is no impact on the data
Operating cost 3404642473.33 3412122022.80 of the parent company.
(2) Changes in major accounting estimates
□Applicable□ Inapplicable
(3) Implementation of new accounting standards adjustment for the first time starting from 2024 and
implementation of financial statement related items at the beginning of the year for the first time
□Applicable□ Inapplicable
184Annual Report 2024 of China Fangda Group Co. Ltd.
VI. Taxation
1. Major taxes and tax rates
Tax Tax basis Tax rate (%)
VAT Taxable income 1 3 5 6 9 and 13
City maintenance and construction tax Taxable turnover 1 5 7
Education surtax Taxable turnover 3
Local education surtax Taxable turnover 2
Enterprise income tax Taxable income See the following table
Tax rates applicable for different tax payers
Tax payer Income tax rate
The Company 25%
Shenzhen Fangda Jianke Co. Ltd. (hereinafter Fangda Jianke) 15%
Fangda Zhiyuan Technology Co. Ltd. (hereinafter Fangda Zhiyuan) 15%
Fangda New Material (Jiangxi) Co. Ltd. (hereinafter Fangda Jiangxi New Material) 15%
Chengdu Fangda Construction Technology Co. Ltd. (hereinafter Fangda Chengdu
15%
Technology)
Dongguan Fangda New Material Co. Ltd. (hereinafter Fangda Dongguan New
25%
Material)
Shenzhen Fangda Property Development Co. Ltd. (hereinafter Fangda Property
25%
Development)
Shenzhen Fangda New Energy Co. Ltd. (hereinafter Fangda New Energy) 25%
Shenzhen Fangda Property Development Co. Ltd. (hereinafter Fangda Property
25%
Development)
Jiangxi Fangda Property Development Co. Ltd. (hereinafter Fangda Jiangxi Property
25%
Development)
Pingxiang Fangda Luxin New Energy Co. Ltd. (hereinafter Fangda Luxin New
25%
Energy)
Nanchang Xinjian Fangda New Energy Co. Ltd. (hereinafter Fangda Xinjian New
25%
Energy)
Dongguan Fangda New Energy Co. Ltd. (hereinafter Fangda Dongguan New Energy) 25%
Shenzhen Qianhai Kechuangyuan Software Co. Ltd. (hereinafter Kechuangyuan
25%
Software)
Fangda Zhiyuan Technology (Hong Kong) Co. Ltd (Fangda Zhiyuan Hong Kong) 16.50%
Fangda Zhiyuan Technology (Wuhan) Co. Ltd (Fangda Wuhan Zhiyuan) 25%
Fangda Zhiyuan Technology (Nanchang) Co. Ltd (Fangda Nanchang Zhiyuan) 25%
Fangda Zhiyuan Railway Transportation Equipment (Dongguan) Co. Ltd. (hereinafter
25%
referred to as Fangda Zhiyuan Dongguan)
General Rail Technology Private Limited 17%
Shihui International Holding Co. Ltd. (hereinafter Fangda Shihui International) 0.00%
Shenzhen Hongjun Investment Co. Ltd. (hereinafter Fangda Hongjun Investment) 25%
Fangda Australia Pty Ltd (hereinafter Fangda Australia) 30%
Shanghai Fangda Zhijian Technology Co. Ltd. (hereinafter referred to as Fangda
15%
Shanghai Zhijian company)
Shenzhen Fangda Yunzhi Technology Co. Ltd. (hereinafter Fangda Yunzhi) 25%
Shanghai Fangda Jianzhi Technology Co. Ltd. (hereinafter Fangda Shanghai Jianzhi) 25%
Shenzhen Zhongrong Litai Investment Co. Ltd. (Zhongrong Litai) 25%
Chengdu Fangda Curtain Wall Technology Co. Ltd. (hereinafter Fangda Chengdu
25%
Curtain Wall)
Fangda Southeast Asia Co. Ltd. (hereinafter Fangda Southeast Asia) 20%
Shenzhen Xunfu Investment Co. Ltd. (hereinafter referred to as Fangda Xunfu
25%
Investment)
Shenzhen Lifu Investment Co. Ltd. (hereinafter referred to as Fangda Lifu 25%
185Annual Report 2024 of China Fangda Group Co. Ltd.
Investment)
Shenzhen Fangda Investment Partnership (Limited Partnership) (hereinafter referred to
Inapplicable
as Fangda Investment)
Fangda Jianke (Hong Kong) Co. Ltd. (hereinafter Fangda Jianke Hong Kong) 16.50%
Shenzhen Fangda Yunzhu Technology Co. Ltd. (hereinafter Fangda Yunzhu) 15%
Shenzhen Yunzhu Testing Technology Co. Ltd. (Hereinafter Fangda Yunzhu Testing) 25%
Jiangxi Fangda Intelligent Manufacturing Technology Co. Ltd. (hereinafter referred to
15%
as Fangda Intelligent Manufacturing Company)
Shenzhen Fangda Jianchuang Technology Co. Ltd. (hereinafter Fangda Jianchuang) 25%
Shenzhen Fangda Construction Technology Co. Ltd. (Fangda Construction
25%
Technology)
Fangda Facade Singapore Pte Ltd (Facade Singapore) 17%
Fangda Facade Philippines Inc. (Facade Philippines) 20%
GENERAL Rail Technology Philippines Inc. 20%
Fangda Gulf DMCC 9%
Global MEGA International Holdings Limited (Global MEGA International) 20%
2. Tax preference
(1) On December 26 2024 the subsidiary Fangda Construction Technology obtained the "High-tech Enterprise Certificate"
jointly issued by the Shenzhen Municipal Bureau of Industry and Information Technology Shenzhen Municipal Finance Bureau
and the State Administration of Taxation Shenzhen Municipal Taxation Bureau with certificate number: GR202444207062. After
obtaining the qualification as a high-tech enterprise the income tax will be levied at 15% for three years (2024 to 2026).
(2) On December 26 2024 the subsidiary Fangda Zhiyuan Technology obtained the "High-tech Enterprise Certificate"
jointly issued by the Shenzhen Municipal Bureau of Industry and Information Technology Shenzhen Municipal Finance Bureau
and the State Administration of Taxation Shenzhen Municipal Taxation Bureau with certificate number: GR202444201506. After
obtaining the qualification as a high-tech enterprise the income tax will be levied at 15% for three years (2024 to 2026).
(3) On October 28 2024 the subsidiary Fangda Jiangxi New Material Co. Ltd. obtained the certificate of high tech
enterprise jointly issued by Jiangxi Provincial Department of Science and Technology Jiangxi Provincial Department of Finance
State Administration of Taxation and Jiangxi Provincial Bureau of Taxation. The certificate number is GR202436000046. Within
three years after obtaining the qualification of high tech enterprise (2024-2026) the income tax will continue to be levied at 15%.
(4) On October 16 2023 the subsidiary Fangda Chengdu Technology obtained the certificate of high tech enterprise No.
GR202351000927 jointly issued by the Department of Science and Technology of Sichuan Province the Department of Finance of
Sichuan Province the State Administration of Taxation and the Sichuan Provincial Taxation Bureau. Within three years after
obtaining the qualification of high tech enterprise (2023-2025) the income tax will continue to be levied at 15%.
186Annual Report 2024 of China Fangda Group Co. Ltd.
(5) The subsidiary Kechuangyuan Software is an enterprise located in Qianhai Shenzhen Hong Kong Modern Service
Industry Cooperation Zone. Its main business meets the conditions of Preferential Catalogue of Enterprise Income Tax in Qianhai
Shenzhen Hong Kong Modern Service Industry Cooperation Zone (2021)(the Regulation shall be implemented from January 1
2021 to December 31 2025) and the income tax is levied at 15%.
(6) On November 15 2023 the subsidiary Fangda Shanghai Zhijian obtained the certificate of high tech enterprise
GR202331002267 jointly issued by Shanghai Science and Technology Commission Shanghai Finance Bureau and Shanghai
Taxation Bureau. Within three years (from 2023 to 2025) after obtaining the qualification of high tech enterprise the income tax
will continue to be charged at 15%.
(7) On November 15 2023 the subsidiary Fangda Yunzhu Co. Ltd. obtained the certificate of high tech enterprise jointly
issued by Shenzhen Science and Technology Innovation Commission Shenzhen Finance Bureau State Administration of Taxation
and Shenzhen Taxation Bureau. The certificate number is GR202344205791. Within three years after obtaining the qualification
of high tech enterprise (from 2023 to 2025) the income tax will be levied at 15%.
(8) According to the Announcement on Further Implementing Preferential Income Tax Policies for Small and Micro
Enterprises (Ministry of Finance and State Administration of Taxation Announcement No. 13 of 2022) the Announcement on
Preferential Income Tax Policies for Small and Micro Enterprises and Individual Businesses (Ministry of Finance and State
Administration of Taxation Announcement No. 6 of 2023) and the Announcement on Further Supporting Tax and Fee Policies for
the Development of Small and Micro Enterprises and Individual Businesses (Ministry of Finance and State Administration of
Taxation Announcement No. 12 of 2023) some companies will be classified as small and micro-profit enterprises in 2024 and
their income will be taxed according to the provisions of the above documents.VII. Notes to the consolidated financial statements
1. Monetary capital
In RMB
Item Closing balance Opening balance
Inventory cash: 148.01 752.40
Bank deposits 1052461034.10 787363734.05
Other monetary capital 439316159.73 637786629.79
Total 1491777341.84 1425151116.24
Including: total amount deposited in
76232428.1145201676.97
overseas
187Annual Report 2024 of China Fangda Group Co. Ltd.
Others:
(1) Among the ending balance of bank deposits restricted funds amount to RMB27819832.20 including
RMB24340459.89 in special accounts for labor protection and migrant workers' wages RMB86361.51 in interest on fixed
deposits RMB3384510.80 in amounts judicially frozen and RMB8500.00 in ETC stored value. Among other monetary funds
restricted funds at the end of the period amount to RMB432232293.30 primarily consisting of bill deposit margins stage
guarantee deposit margins and guarantee letter issuance deposit margins. In the preparation of the cash flow statement the above-
mentioned deposits and other restricted deposits are not used as cash and cash equivalents.
(2) In addition there are no other funds in the monetary funds at the end of the period that have restrictions on use and
potential recovery risks due to mortgages pledges or freezing.
2. Derivative financial assets
In RMB
Item Closing balance Opening balance
Forward foreign exchange contract 0.00 173737.06
Total 0.00 173737.06
3. Notes receivable
(1) Classification of notes receivable
In RMB
Item Closing balance Opening balance
Bank acceptance 39584331.31 21487899.17
Commercial acceptance 34303362.93 25884982.10
Total 73887694.24 47372881.27
(2) Disclosure by bad debt accrual method
In RMB
Closing balance Opening balance
Remaining book Remaining book
Bad debt provision Bad debt provision
Type value Book value Book
Proporti Provisio value Proporti Provisio value
Amount Amount Amount Amount
on n rate on n rate
Notes
receivab 745309 643256. 738876 477783 405473. 473728
le with 100.00% 0.86% 100.00% 0.85%50.99 75 94.24 54.93 66 81.27
provisio
n for bad
188Annual Report 2024 of China Fangda Group Co. Ltd.
debts by
portfolio
Includin
g:
Commer
cial 349466 643256. 343033 262904 405473. 258849
46.89%1.84%55.03%1.54%
acceptan 19.68 75 62.93 55.76 66 82.10
ce
Bank
395843395843214878214878
acceptan 53.11% 44.97%
31.3131.3199.1799.17
ce
745309643256.738876477783405473.473728
Total 100.00% 0.86% 100.00% 0.85%
50.997594.2454.936681.27
Provision for bad debts by combination: trade acceptance
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Commercial acceptance 34946619.68 643256.75 1.84%
Total 34946619.68 643256.75
Provision for bad debts by combination: bank acceptance
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Bank acceptance 39584331.31 0.00 0.00%
Total 39584331.31 0.00
If the provision for bad debts on accounts receivable is being made based on the expected credit loss general model:
□ Applicable□ Inapplicable
(3) Bad debt provision made returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Opening
Type
balance Written-back or
Closing balance
Provision Canceled Others
recovered
Commercial
405473.66237783.09643256.75
acceptance
Total 405473.66 237783.09 643256.75
Including significant recovery or reversal:
□ Applicable□ Inapplicable
(4) The Group has no endorsed or discounted immature receivable notes at the end of the period.
In RMB
Item De-recognized amount Not de-recognized amount
Bank acceptance 33147312.95
189Annual Report 2024 of China Fangda Group Co. Ltd.
Commercial acceptance 1353372.70
Total 34500685.65
4. Account receivable
(1) Account age
In RMB
Age Closing balance of book value Opening balance of book value
Within 1 year (inclusive) 535457065.77 480886398.43
1-2 years 197202489.75 202348687.37
2-3 years 196353916.70 158881321.32
Over 3 years 568801528.90 335427049.97
3-4 years 173116205.07 134723171.92
4-5 years 134492519.77 50830831.78
Over 5 years 261192804.06 149873046.27
Total 1497815001.12 1177543457.09
The Company needs to comply with the disclosure requirements of the decoration and decoration industry in the Guidelines for the
Self-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.Significant individual amounts of accounts receivable in the curtain wall and materials industry that have exceeded three years in
age
Balance of accounts
Customer receivable of over 3 years Balance of provision for bad Reason of the age Whether there is a risk
(RMB) debts (RMB) of recovery
Customer 1 106220361.31 50982174.13 Customer credit statusdeteriorates Yes
Customer 2 54873223.21 54873223.21 Customer credit statusdeteriorates Yes
Customer 3 28770560.55 28770560.55 Customer credit statusdeteriorates Yes
Customer 4 26558000.66 18659625.79 Customer credit statusdeteriorates Yes
Customer 5 25794327.13 25794327.13 Customer credit statusdeteriorates Yes
Customer 6 19541985.85 16037781.34 Customer credit statusdeteriorates Yes
Customer 7 17374148.42 17374148.42 Customer credit statusdeteriorates Yes
Customer 8 14271744.99 14271744.99 Customer credit statusdeteriorates Yes
Customer 9 13461834.96 13461834.96 Customer credit statusdeteriorates Yes
Customer 10 13387598.42 2849370.91 Customer credit statusdeteriorates Yes
Details of the final
payment for customer
Customer 11 10478293.72 4522431.57 projects are under No
negotiation due to
disputes.
190Annual Report 2024 of China Fangda Group Co. Ltd.
(2) Disclosure by bad debt accrual method
In RMB
Closing balance Opening balance
Remaining book Remaining book
Bad debt provision Bad debt provision
Type value Book value Book
Proporti Provisio value Proporti Provisio value
Amount Amount Amount Amount
on n rate on n rate
Account
receivab
le for
which
127640979879296529804303743826604764
bad debt 8.51% 76.77% 6.83% 92.48%
916.8387.5229.3139.2798.730.54
provisio
n is
made by
group
Includin
g:
Custome 548732 548732 548732 548732
3.66%100.00%4.67%100.00%
r 1 23.21 23.21 23.21 23.21
Custome 472105 236052 236052
3.15%50.00%
r 2 77.56 88.79 88.77
Custome 134618 134618 134618 134618
0.90%100.00%1.14%100.00%
r 3 34.96 34.96 34.96 34.96
Custome 709642 354821 354821 709642 354821 354821
0.47%50.00%0.60%50.00%
r 4 1.00 0.50 0.50 1.00 0.50 0.50
Custome 499886 249943 249943 499886 249943 249943
0.33%50.00%0.42%50.00%
r 5 0.10 0.06 0.04 0.10 0.06 0.04
Account
receivab
le for
which
137017276320109385109711191673905439
bad debt 91.49% 20.17% 93.17% 17.47%
4084.29816.623267.673117.82844.17273.65
provisio
n is
made by
group
Includin
g:
Portfolio
1:
Engineer
120158270560931020881971181121700850
ing 80.23% 22.52% 74.90% 20.54%
1352.19899.59452.60973.34184.71788.63
operatio
ns
section
Portfolio
2: Real
estate 871668 218121 849855 144374 829356 136081
5.82%2.50%12.26%5.74%
business 12.19 8.43 93.76 822.98 6.86 256.12
payment
s
Portfolio 814259 5.44% 357869 4.40% 778472 707663 6.01% 225909 3.19% 685072
191Annual Report 2024 of China Fangda Group Co. Ltd.
3: Other 19.91 8.60 21.31 21.50 2.60 28.90
business
models
149781374308112350117754266056911486
Total 100.00% 24.99% 100.00% 22.59%
5001.12804.146196.983457.09542.90914.19
Separate bad debt provision: separate provision
In RMB
Opening balance Closing balance
Name Remaining book Bad debt Remaining book Bad debt Provision
Reason
value provision value provision rate
Customer 1 54873223.21 54873223.21 54873223.21 54873223.21 100.00%
Customer 2 47210577.56 23605288.79 50.00%
Customer 3 13461834.96 13461834.96 13461834.96 13461834.96 100.00%
Customer 4 7096421.00 3548210.50 7096421.00 3548210.50 50.00%
Customer 5 4998860.10 2499430.06 4998860.10 2499430.06 50.00%
Total 80430339.27 74382698.73 127640916.83 97987987.52
Provision for bad debts by combination: Portfolio 1: Engineering business
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 434542505.23 8518488.97 1.96%
1-2 years 153324126.70 8678145.58 5.66%
2-3 years 169472582.50 21624701.52 12.76%
3-4 years 170186095.94 33628772.56 19.76%
4-5 years 133612334.38 57667083.52 43.16%
Over 5 years 140443707.44 140443707.44 100.00%
Total 1201581352.19 270560899.59
Group recognition basis:
See 10. Financial Tools in Chapter X V Important Accounting Policies and Accounting Estimates for the recognition criteria and
instructions for withdrawing bad debt reserves by portfolio
Bad debt provision by portfolio: portfolio 2: real estate business funds
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 54413740.54 543431.46 1.00%
1-2 years 16671818.48 833590.92 5.00%
2-3 years 16079919.21 803995.96 5.00%
3-4 years 1333.96 200.09 15.00%
4-5 years
Over 5 years
Total 87166812.19 2181218.43
Provision for bad debts by combination: portfolio 3: Others business
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 44731417.29 326523.94 0.73%
192Annual Report 2024 of China Fangda Group Co. Ltd.
1-2 years 23798443.43 499767.31 2.10%
2-3 years 8896019.47 749044.84 8.42%
3-4 years 2496128.86 618540.73 24.78%
4-5 years 880185.39 761096.31 86.47%
Over 5 years 623725.47 623725.47 100.00%
Total 81425919.91 3578698.60
If the provision for bad debts on accounts receivable is being made based on the expected credit loss general model:
□ Applicable□ Inapplicable
(3) Bad debt provision made returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Written-
Type Opening balance back or Closing balance
Provision Canceled Others
recovere
d
Separate bad
debt 74382698.73 17584187.04 6021101.75 97987987.52
provision
Provision for
bad debts by 191673844.17 92211524.23 1531354.19 -6033197.59 276320816.62
combination
Total 266056542.90 109795711.27 1531354.19 -12095.84 374308804.14
Note: "Others" refers to the impact of conversion of different categories of bad debt provisions and foreign exchange statement
translation differences.
(4) Written-off account receivable during the period
In RMB
Item Amount
Account receivable written off 1531354.19
(5) Accounts receivable and contract assets with the top-5 ending balances grouped by party owed
In RMB
Closing balance of
Percentage of total
Closing balance of provision for bad
Closing balance of ending balance of
Closing balance of accounts debts on accounts
Entity accounts accounts
contract assets receivable and receivable and
receivable receivable and
contract assets impairment of
contract assets
contract assets
No.1 123432623.99 123432623.99 3.00% 53155500.46
No.2 18361801.19 78109255.80 96471056.99 2.34% 1967864.37
No.3 19732113.69 63386093.17 83118206.86 2.02% 11399107.69
No.4 8967200.00 66626539.51 75593739.51 1.84% 4338104.72
No.5 13109762.47 61246571.24 74356333.71 1.81% 5680284.50
193Annual Report 2024 of China Fangda Group Co. Ltd.
Total 183603501.34 269368459.72 452971961.06 11.01% 76540861.74
5. Contract assets
(1) Contract assets
In RMB
Closing balance Opening balance
Item Remaining Bad debt Remaining Bad debt
Book value Book value
book value provision book value provision
Completed and
unsettled
project funds 2303529715. 2106693360. 2536843592. 2357777551.
196836354.61179066040.85
that fail to meet 41 80 06 21
the collection
conditions
Quality
guarantee
deposit that
262289726.5024254807.14238034919.36157921009.2813409302.47144511706.81
fails to meet the
collection
conditions
Sales funds
with
52852539.43727775.8952124763.5451338008.75436594.7850901413.97
conditional
collection right
Less: Contract
assets shown in
160412051.4511257487.71149154563.7469887873.015127003.4364760869.58
other non-
current assets
2458259929.2247698479.2676214737.2488429802.
Total 210561449.93 187784934.67
89960841
(2) The amount and reason for the significant change in the book value during the reporting period
In RMB
Item Change Reason
Mainly due to the transfer of contract assets to accounts
Completed and unsettled project funds that
-251084190.41 receivable from construction contracts that met the
fail to meet the collection conditions
collection conditions this year.Quality guarantee deposit that fails to meet Mainly due to the increase in warranty funds not
93523212.55
the collection conditions meeting collection conditions.Less: Contract assets shown in other non- Mainly due to the increase in warranty funds for
84393694.16
current assets completed projects that have not yet matured.Total -241954672.02 ——
(3) Disclosure by bad debt accrual method
In RMB
Closing balance Opening balance
Type
Remaining book Bad debt provision Book Remaining book Bad debt provision Book
194Annual Report 2024 of China Fangda Group Co. Ltd.
value value value value
Proporti Provisio Proporti Provisio
Amount Amount Amount Amount
on n rate on n rate
Separate
bad debt 162885 903324 725532 162885 903324 725532
0.66%55.46%0.61%55.46%
provisio 76.53 7.20 9.33 76.53 7.20 9.33
n
Includin
g:
Custome 145106 725532 725532 145106 725532 725532
0.59%50.00%0.59%50.00%
r 1 58.66 9.33 9.33 58.66 9.33 9.33
Custome 177791 177791 177791 177791
0.07%100.00%0.07%100.00%
r 2 7.87 7.87 7.87 7.87
Provisio
n for bad
244197201528224044265992178751248117
debts by 99.34% 8.25% 99.39% 6.72%
1353.36202.733150.636160.55687.474473.08
combina
tion
Includin
g:
Combin
ation 1:
sales
payment
528525727775.521247513380436594.509014
with 2.15% 1.38% 1.92% 0.85%
39.438963.5408.757813.97
conditio
nal
collectio
n right
Portfolio
2:
Complet
ed and
unsettled
project 228632 187097 209923 251964 169724 234991
93.01%8.18%94.15%6.74%
not 9426.34 333.23 2093.11 3302.99 313.35 8989.64
meeting
collectio
n
conditio
ns
Portfolio
3:
Quality
guarante
e deposit
102789137030890862889448859077803540
not 4.18% 13.33% 3.32% 9.66%
387.5993.6193.9848.819.3469.47
meeting
collectio
n
conditio
ns
245825210561224769267621187784248842
Total 100.00% 8.57% 100.00% 7.02%
9929.89449.938479.964737.08934.679802.41
Separate bad debt provision: separate provision
195Annual Report 2024 of China Fangda Group Co. Ltd.
In RMB
Opening balance Closing balance
Name Remaining book Bad debt Remaining book Bad debt Provision
Reason
value provision value provision rate
Customer 1 14510658.66 7255329.33 14510658.66 7255329.33 50.00%
Customer 2 1777917.87 1777917.87 1777917.87 1777917.87 100.00%
Total 16288576.53 9033247.20 16288576.53 9033247.20
Provision for bad debts by portfolio: Portfolio 1: Sales payments with conditional collection rights.In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Sales funds with conditional collection
52852539.43727775.891.38%
right
Total 52852539.43 727775.89
Group recognition basis:
See 10. Financial Tools in Chapter X V Important Accounting Policies and Accounting Estimates for the recognition criteria and
instructions for withdrawing bad debt reserves by portfolio
Provision for bad debts by portfolio: Portfolio 2: Unsettled project payments for completed projects not meeting collection
conditions.In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Completed and unsettled project funds that fail
2286329426.34187097333.238.18%
to meet the collection conditions
Total 2286329426.34 187097333.23
Provision for bad debts by portfolio: Portfolio 3: Warranty funds not meeting collection conditions.In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Quality guarantee deposit that fails to
102789387.5913703093.6113.33%
meet the collection conditions
Total 102789387.59 13703093.61
Provision for bad debts based on general model of expected credit losses
□ Applicable□ Inapplicable
(4) Bad debt provision made returned or recovered in the period
In RMB
Recovered or reversed Written off in the
Item Provision Reason
during the period current period
Provision for bad debts by
22776515.26
combination
Total 22776515.26 ——
196Annual Report 2024 of China Fangda Group Co. Ltd.
6. Receivable financing
(1) Presentation of receivables financing classification
In RMB
Item Closing balance Opening balance
Notes receivable 4568000.10 6979428.14
Total 4568000.10 6979428.14
(2) Disclosure by bad debt accrual method
In RMB
Closing balance Opening balance
Remaining book Remaining book
Bad debt provision Bad debt provision
Type value Book value Book
Proporti Provisio value Proporti Provisio value
Amount Amount Amount Amount
on n rate on n rate
Provisio
n for bad
456800456800697942697942
debts by 100.00% 0.00 0.00% 100.00% 0.00 0.00%
0.100.108.148.14
combina
tion
Includin
g:
Bank
456800456800697942697942
acceptan 100.00% 0.00 0.00% 100.00% 0.00 0.00%
0.100.108.148.14
ce
456800456800697942697942
Total 100.00% 0.00 0.00% 100.00% 0.00 0.00%
0.100.108.148.14
Provision for bad debts by combination: bank acceptance
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Bank acceptance 4568000.10 0.00 0.00%
Total 4568000.10 0.00
Group recognition basis:
See 10. Financial Tools in Chapter X V Important Accounting Policies and Accounting Estimates for the recognition criteria and
instructions for withdrawing bad debt reserves by portfolio
(3) At the end of the period the Company has endorsed or discounted accounts receivable financing that
has not yet matured as of the balance sheet date.In RMB
Item De-recognized amount Not de-recognized amount
Bank acceptance 60867571.05
Total 60867571.05
197Annual Report 2024 of China Fangda Group Co. Ltd.
7. Other receivables
In RMB
Item Closing balance Opening balance
Other receivables 168322524.80 145113323.33
Total 168322524.80 145113323.33
(1) Other receivables
1) Other receivables are disclosed by nature
In RMB
By nature Closing balance of book value Opening balance of book value
Deposit and pledge paid 101364611.15 96041429.79
Construction borrowing and advanced
39950652.1641180355.37
payment
Staff borrowing and petty cash 3221577.94 2515436.58
VAT refund receivable 642493.02 798918.77
Refundable advance payments for goods 18884265.12
Others 12294754.02 11974398.52
Total 176358353.41 152510539.03
(2) Account age
In RMB
Age Closing balance of book value Opening balance of book value
Within 1 year (inclusive) 45432663.12 30123678.94
1-2 years 11015466.34 4793018.03
2-3 years 4495902.18 5310261.72
Over 3 years 115414321.77 112283580.34
3-4 years 3882310.18 9787862.62
4-5 years 9518614.26 7701603.22
Over 5 years 102013397.33 94794114.50
Total 176358353.41 152510539.03
The Company needs to comply with the disclosure requirements of the decoration and decoration industry in the Guidelines for the
Self-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.Significant individual amounts of other accounts receivable in the curtain wall and materials industry that have exceeded three
years in age
Customer Balance of other receivables Balance of provision for badolder than three years (RMB) debts (RMB) Reason of the age
Whether there is a
risk of recovery
Customer 1 1970381.89 1970381.89 Customer credit status Yes
deteriorates
(3) Disclosure by bad debt accrual method
□Applicable □ Inapplicable
In RMB
198Annual Report 2024 of China Fangda Group Co. Ltd.
Closing balance Opening balance
Remaining book Remaining book
Bad debt provision Bad debt provision
Type value Book value Book
Proporti Provisio value Proporti Provisio value
Amount Amount Amount Amount
on n rate on n rate
Provisio
n for bad
176358803582168322152510739721145113
debts by 100.00% 4.56% 100.00% 4.85%
353.418.61524.80539.035.70323.33
combina
tion
Includin
g:
Portfolio
167771249826165273143789214350141645
1: First 95.13% 1.49% 94.28% 1.49%
508.005.50242.50155.166.61648.55
stage
Portfolio
2:31435994307.7304928357488107207.346767
1.78%3.00%2.34%3.00%
Second 0.00 0 2.30 2.60 82 4.78
stage
Portfolio
544325544325514650514650
3: Third 3.09% 100.00% 0.00 3.38% 100.00% 0.00
5.415.411.271.27
stage
176358803582168322152510739721145113
Total 100.00% 4.56% 100.00% 4.85%
353.418.61524.80539.035.70323.33
Provision for bad debts by portfolio: Portfolio 1: stage one
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Portfolio 1: First stage 167771508.00 2498265.50 1.49%
Total 167771508.00 2498265.50
Description of the basis for determining the portfolio: Provision for bad debts is made on the basis of the general model of
expected credit losses.Provision for bad debts by portfolio: Portfolio 2: stage two
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Portfolio 2: Second stage 3143590.00 94307.70 3.00%
Total 3143590.00 94307.70
Provision for bad debts by portfolio: Portfolio 3: stage three
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Portfolio 3: Third stage 5443255.41 5443255.41 100.00%
Total 5443255.41 5443255.41
Provision for bad debts based on general model of expected credit losses
In RMB
First stage Second stage Third stage
Bad debt provision Total
Expected credit Expected credit loss for the Expected credit loss for
199Annual Report 2024 of China Fangda Group Co. Ltd.
losses in the next entire duration (no credit the entire duration (credit
12 months impairment) impairment has occurred)
Balance on January 1 2024 2143506.61 107207.82 5146501.27 7397215.70
Balance on January 1 2024
in the current period
Provision 369503.87 -12900.12 296754.14 653357.89
Canceled in the current
14542.6214542.62
period
Other change -202.36 -202.36
Balance on December 31
2498265.5094307.705443255.418035828.61
2024
Changes in book balances with significant changes in the current period
□ Applicable□ Inapplicable
4) Bad debt provision made returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Opening
Type
balance Written-back
Closing balance
Provision Write-off Others
or recovered
Provision for bad debts
7397215.70653357.8914542.62-202.368035828.61
by combination
Total 7397215.70 653357.89 14542.62 -202.36 8035828.61
5) Other receivable written off in the current period
In RMB
Item Amount
Other receivable written off 14542.62
6) Balance of top 5 other receivables at the end of the period
In RMB
Balance of bad
debt provision at
Entity By nature Closing balance Age Percentage (%)
the end of the
period
6000000.00 1-2 years
Margin and
Shenzhen Yikang Real Estate Co. 62675.83 4-5 years
current 43.13% 1133333.87
Ltd.account Over 570000000.00
years
Bangshen Electronics (Shenzhen) Over 5
Deposit 20000000.00 11.34% 298000.00
Co. Ltd. years
Jiangxi Yajinghong Trading Co. Refundable Less than
16215255.009.19%241607.30
Ltd. prepayments 1 year
Shenzhen Henggang Dakang Co. Over 5
Deposit 8000000.00 4.54% 119200.00
Ltd. years
200Annual Report 2024 of China Fangda Group Co. Ltd.
China Merchants Futures Less than
Deposit 6386728.75 3.62% 95162.26
Brokerage Co. Ltd. 1 year
Total 126664659.58 71.82% 1887303.43
8. Prepayment
(1) Account ages of prepayments
In RMB
Closing balance Opening balance
Age
Amount Proportion Amount Proportion
Less than 1 year 17938392.45 76.81% 29398144.01 86.53%
1-2 years 1949630.86 8.35% 1713380.35 5.04%
2-3 years 1404616.03 6.01% 648638.59 1.91%
Over 3 years 2062396.77 8.83% 2216406.41 6.52%
Total 23355036.11 33976569.36
At the end of the period there are no important prepayments exceeding one year in age.
(2) Balance of top 5 prepayments at the end of the period
The total of top5 prepayments in terms of the prepaid entities in the period is RMB8511258.52 accounting for 36.44% of
the total prepayments at the end of the period.
9. Inventories
Whether the Company needs to comply with disclosure requirements of the real estate industry.Yes
(1) Classification of inventories
The Company needs to comply with the disclosure requirements of the real estate industry in the Guidelines for the Self-discipline
and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.Classified by nature:
In RMB
Closing balance Opening balance
Provision for Provision for
inventory inventory
depreciation or depreciation or
Item Remaining contract Remaining contract
Book value Book value
book value performance book value performance
cost cost
impairment impairment
provision provision
Raw materials 110961372.14 110961372.14 131800215.01 131800215.01
Product in
91796788.9691796788.96120647582.06120647582.06
process
201Annual Report 2024 of China Fangda Group Co. Ltd.
Finished goods
8694704.458694704.4511240201.5711240201.57
in stock
Development
230990938.09230990938.09224969147.17224969147.17
cost
Development
124380755.91124380755.91134821091.47134821091.47
products
Low price
178098.23178098.23171286.80171286.80
consumable
OEM materials 13483327.00 13483327.00 15096929.98 15096929.98
Contract
performance 102358825.07 102358825.07 90470830.76 90470830.76
costs
Goods
20251212.3020251212.3023270292.1723270292.17
delivered
Materials in
2570386.592570386.593136909.523136909.52
transit
Total 705666408.74 705666408.74 755624486.51 755624486.51
Development cost and capitalization rate of its interest are disclosed as follows:
In RMB
Includi
Transfe Increas
ng:
rred to e Accum
Estimat Estimat Other capitali
Openin develop (develo ulative
Project Starting ed ed total decreas Closing zed Capital
g ment pment capitali
name time finish investm e in this balance interest source
balance product cost) in zed
time ent period for the
in this this interest
current
period period
period
Dakang
Village
Decem Decem 36000
Project 201016 201016
ber 1 ber 31 00000.in 423.09 423.09
2026203200
Shenzh
en
Fangda
Bangsh Decem Decem
870000239526021729974
en ber 1 ber 31
000.00724.0890.92515.00
Industr 2025 2026
y Park
44700
22496960217230990
Total -- -- 00000. --
147.1790.92938.09
00
Disclose the main project information of "Development Products" according to the following format:
In RMB
Including:
Accumulativ capitalized
Completion Opening Closing
Project name Increase Decrease e capitalized interest for
time balance balance
interest the current
period
Phase I of 29 December 12095397.4 15532505.9
8447099.625009991.10549009.88
Fangda Town 2016 5 7
Nanchang
April 27 122725694. 13877444.0 108848249.Fangda 4221936.03
202102894
Center
Total -- 134821091. 8447099.62 18887435.1 124380755. 4770945.91
202Annual Report 2024 of China Fangda Group Co. Ltd.
47891
(2) Capitalization rate of interest in the closing inventory balance
As of December 31 2024 the capitalization amount of borrowing costs in the ending inventory balance is RMB4770945.91.
10. Non-current assets due in 1 year
In RMB
Item Closing balance Opening balance
Fixed deposit certificate and interest 327120273.54
Total 327120273.54
11. Other current assets
In RMB
Item Closing balance Opening balance
Reclassification of VAT debit balance 292626079.84 230260579.29
Overpayment and prepayment of income
11197246.582852830.41
tax
Other prepaid taxes 949974.83 3836971.59
Payment to be collected on behalf of
3003841.893003841.89
suppliers
Pending development products 8447099.62
Total 307777143.14 248401322.80
12. Investment in other equity tools
In RMB
Accumulat Accumulat
Gains Losses Reason for
ed gains ed losses
recognized recognized measureme
recognized recognized Dividend
in other in other nt at fair
in other in other income
comprehen comprehen value with
Project Closing Opening comprehen comprehen recognized
sive sive variations
name balance balance sive sive in the
income income accounted
income at income at current
during the during the into current
the end of the end of period
current current income
the current the current
period period account
period period
Investment
s in non-
Shenyang
0.00 0.00 0.00 0.00 0.00 0.00 0.00 trading
Fangda
equity
instruments
Derecognition occurred during this period
In RMB
Cumulative gains transferred Cumulative losses transferred
Project name Reason for derecognition
to retained earnings to retained earnings
Shenyang Fangda 21421931.75 Bankruptcy
203Annual Report 2024 of China Fangda Group Co. Ltd.
13. Long-term share equity investment
In RMB
Change (+-)
Invest
ment BalancBeginn
e of
ing gain Other
and Cash impairOpeni balanc
Investe miscellIncreas Decrea loss divide Impair Closin mentng e of
d aneous Othered sed recogn nd or ment g book provisibook impair
entity incom equity Others value on at
value ment invest invest ized profit provisie change
provisi ment ment using annou on
the end
adjust of the
ons the ncedment
equity period
metho
d
1. Joint venture
2. Associate
Gansh
ang
24022402
Joint 775.78
065.72841.50
Invest
ment
Jiangxi
Busine
ss
Innova
tive 52354 - 54288
2004
Proper 951.6 70819 132.4
000.00
ty 8 .21 7
Joint
Stock
Co.Ltd.
54757-56690
Subtot 2004
017.470043973.9
al 000.00
0.437
54757-56690
2004
Total 017.4 70043 973.9
000.00
0.437
The recoverable amount is determined as the net amount after deducting the disposal costs from the fair value.□ Applicable□ Inapplicable
The recoverable amount is determined based on the present value of estimated future cash flows.□ Applicable□ Inapplicable
14. Other non-current financial assets
In RMB
Item Closing balance Opening balance
Financial assets measured at fair value with variations accounted
6519740.177455617.17
into current income account
Total 6519740.17 7455617.17
204Annual Report 2024 of China Fangda Group Co. Ltd.
15. Investment real estate
(1) Investment real estate measured at costs
?Applicable □ Inapplicable
In RMB
Item Houses & buildings Total
I. Book value
1. Opening balance 17388824.39 17388824.39
2. Increase in this period
3. Decrease in this period 17388824.39 17388824.39
(1) Other transfer-out 17388824.39 17388824.39
4. Closing balance
II. Accumulative depreciation and
amortization
1. Opening balance 8151827.44 8151827.44
2. Increase in this period 449408.04 449408.04
(1) Provision or amortization 449408.04 449408.04
3. Decrease in this period 8601235.48 8601235.48
(1) Other transfer-out 8601235.48 8601235.48
4. Closing balance
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 0.00 0.00
2. Opening book value 9236996.95 9236996.95
(2) Investment real estate measured at fair value
□Applicable □ Inapplicable
In RMB
Item Houses & buildings Total
I. Opening balance 5747572171.31 5747572171.31
II. Change in this period 87463926.89 87463926.89
Add: external purchase 5157977.68 5157977.68
Inventory/fixed assets/intangible assets
270595130.00270595130.00
transfer
Less: disposal 12296393.00 12296393.00
Transfer-out to fixed assets 153968082.00 153968082.00
Change in fair value 22024705.79 22024705.79
III. Closing balance 5835036098.20 5835036098.20
205Annual Report 2024 of China Fangda Group Co. Ltd.
The Company needs to comply with the disclosure requirements of the real estate industry in the Guidelines for the Self-discipline
and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.Disclosure of investment real estate measured at fair value by projects
In RMB
Rental
Reason for
Project Completion in building income in Opening Closing fair Change in
Location the change
name time area the report fair value value fair value
and report
period
Primarily
due to
some
properties
being
transferred
from rental
to self-use
this period
Fangda
and the
Town
11 October 10766178 decrease in
commercial Shenzhen 92470.58 49534187 48169961
20170.0021.0253.02
-2.75%
assessed
and office
fair value
buildings
as per
appraisal
report
reference
"Shenzhen
Guoyu
Appraisal
No. [2025]
01004-1".
Primarily
due to
some
properties
being
transferred
from self-
use to
rental this
period and
28 the
Fangda 14866799. 33323676 38064435
Shenzhen December 20464.75 14.23% decrease in
Building 77 8.00 0.00
2002 assessed
fair value
as per
appraisal
report
reference
"Shenzhen
Guoyu
Appraisal
No. [2025]
01004-1".
Nanchang Primarily
December 14059406. 41267897 41555240
Fangda Nanchang 38165.36 0.70% due to
102020722.003.00
Center some
206Annual Report 2024 of China Fangda Group Co. Ltd.
properties
being
transferred
from
inventory
to rental
this period
and the
decrease in
assessed
fair value
as per
appraisal
report
reference
"Shenzhen
Guoyu
Appraisal
No. [2025]
01003".
Due to
transfer
from self-
use to
rental this
period as
Nanchang
per
Fangda August 2 18587784
Nanchang 85472.88 502363.17 0.00 - appraisal
Technology 2005 8.00
report
Park
reference
"Shenzhen
Guoyu
Appraisal
No. [2025]
01004-2".
Primarily
due to the
disposal
and
acquisition
of new
investment
properties
Guangzhou
this period
Zhuhai
Others 3567.27 146201.85 48237710. 35965344. -25.44% as per
Shaoguan 29 18
appraisal
etc.report
reference
"Shenzhen
Guoyu
Appraisal
No. [2025]
01002-1 to
7".
Total 240140.84 13723655 57475721 583503601.51 71.31 98.20 1.52%
Whether the Company has investment real estate in the current construction period
207Annual Report 2024 of China Fangda Group Co. Ltd.
□ Yes□ No
Whether there is new investment real estate measured at fair value in the report period
□Yes □ No
Newly-added investment real estate measured by fair value in the current period:
In RMB
Original
Project Original book Recorded fair Different handling
accounting Closing fair value Change time
name value value method and basis
method
According to
relevant
Fangda Fixed assets March 31 provisions of
38180910.5676037916.0075229002.00
Building measured at cost 2024 investment
property
standards when
converting other
cost-measured
Nanchang June 30 and assets to
Inventory
Fangda 6997689.14 8679366.00 8679366.00 September investment
measured at cost
Center 30 2024 property
measured at fair
value any excess
of the fair value
over the original
book value on the
conversion date is
included in other
comprehensive
income while any
Nanchang Fixed assets shortfall is
Fangda intangible December
72893286.32 185877848.00 185877848.00 included in the
Technolo assets etc. 31 2024 current period's
gy Park measured at cost profit or loss.Subsequent
changes in fair
value are included
in the current
period's profit or
loss.Newly acquired
Changes in fair
through
value are included
property-for- December
Others 4866513.76 4866513.76 4193140.00 in the current
debt settlement 31 2024
period's profit or
for project
loss.payments
Total 122938399.78 275461643.76 273979356.00
(3) Conversion to investment property and measured at fair value
In RMB
Impact on Impact on other
Accounting subject Amount before Reason for Approval
Item profit or comprehensive
before conversion conversion conversion procedure
loss income
208Annual Report 2024 of China Fangda Group Co. Ltd.
Resolution
Fangda Fixed assets Self-use to
38180910.56 at the Board 0.00 37857005.44
Building measured at cost rental
of Directors;
Managemen
Nanchang Inventory measured Inventory to
6997689.14 t process 0.00 1681676.86
Fangda Center at cost rental
approval
Nanchang Fixed assets
Resolution
Fangda intangible assets Self-use to
72893286.32 at the Board 0.00 112984561.68
Technology etc. measured at rental
of Directors;
Park cost
Total 118071886.02
(4) Investment real estate without ownership certificate
In RMB
Item Book value Reason
The developer is completing relevant
5 units at Lanzhou Railway - City Dawn 4584155.96
procedures.
16. Fixed assets
In RMB
Item Closing balance Opening balance
in fixed assets 939548074.59 620828178.38
Disposal of fixed assets 1346269.80
Total 940894344.39 620828178.38
(1) Fixed assets
In RMB
Houses & Mechanical Transportation Electronics and PV power
Item Total
buildings equipment facilities other devices plants
I. Original book
value:
1. Opening
604581780.49133179843.0220556336.6052612038.36129596434.84940526433.31
balance
2. Increase in
404433492.7041922814.831142284.064566255.09760170.69452825017.37
this period
(1) Purchase 156893.47 3702669.74 1142284.06 3259174.34 8261021.61
(2) Transfer-in
of construction 250308517.23 38220145.09 1307080.75 760170.69 290595913.76
in progress
(3) Investment
property
153968082.00153968082.00
converted to
self-use
3. Decrease in
152854058.8446217053.73378343.475818037.65602476.07205869969.76
this period
(1) Disposal or 46217053.73 378343.47 5818037.65 602476.07 53015910.92
209Annual Report 2024 of China Fangda Group Co. Ltd.
retirement
(2) Converted
to investment 152854058.84 152854058.84
property
4. Closing 1187481480.
856161214.35128885604.1221320277.1951360255.80129754129.46
balance 92
II.Accumulative
depreciation
1. Opening
127270899.0695754806.5215333003.2634440400.1346802676.46319601785.43
balance
2. Increase in
17557578.584968886.18789353.892729323.926385038.5432430181.11
this period
(1) Provision 17557578.58 4968886.18 783921.28 2729323.92 6384647.23 32424357.19
(2) Other
5432.61391.315823.92
increases
3. Decrease in
57174907.3441437192.62529613.734728217.21233710.51104103641.41
this period
(1) Disposal or
41437192.62529613.734728217.21233710.5146928734.07
retirement
(2) Converted
to investment 57174907.34 57174907.34
property
4. Closing
87653570.3059286500.0815592743.4232441506.8452954004.49247928325.13
balance
III. Impairment
provision
1. Opening
79843.2016626.3096469.50
balance
2. Increase in
2500000.002500000.00
this period
(1) Provision 2500000.00 2500000.00
3. Decrease in
2574762.0016626.302591388.30
this period
(1) Disposal or
2574762.0016626.302591388.30
retirement
4. Closing
5081.205081.20
balance
IV. Book value
1. Closing book
768507644.0569594022.845727533.7718918748.9676800124.97939548074.59
value
2. Opening
477310881.4337345193.305223333.3418155011.9382793758.38620828178.38
book value
Note: As of December 31 2024 the net value of RMB355978425.04 of the Company's houses and buildings has been
mortgaged to the bank.
210Annual Report 2024 of China Fangda Group Co. Ltd.
(2) Fixed assets without ownership certificate
In RMB
Item Book value Reason
Yuehai Office Building C 502 100277.49 Historical reasons
(3) Impairment test of fixed assets
□Applicable □ Inapplicable
The recoverable amount is determined as the net amount after deducting the disposal costs from the fair value.□Applicable □ Inapplicable
In RMB
Method for
Basis for
Recoverable Impairment determining Key
Item Book value determining key
amount amount fair value and parameters
parameters
disposal costs
Estimated
Estimated
Mechanical recoverable
3846269.79 1346269.79 2500000.00 disposal Market inquiry
equipment amount from
amount
disposal
Total 3846269.79 1346269.79 2500000.00
The recoverable amount is determined based on the present value of estimated future cash flows.□ Applicable□ Inapplicable
(4) Disposal of fixed assets
In RMB
Item Closing balance Opening balance
Disposal of fixed assets 1346269.80
Total 1346269.80
17. Construction in process
In RMB
Item Closing balance Opening balance
Construction in process 7265104.44 109414347.33
Total 7265104.44 109414347.33
(1) Construction in progress
In RMB
Closing balance Opening balance
Impair Impair
Item Remaining book ment Remaining book ment
Book value Book value
value provis value provis
ion ion
Fangda (Ganzhou) Low- 109181428.63 109181428.63
211Annual Report 2024 of China Fangda Group Co. Ltd.
Carbon Intelligent
Manufacturing Base
Fangda (Ganzhou) Low
Carbon Intelligent
Manufacturing Base 7018372.92 7018372.92
exhibition hall and
installation equipment
Fangda Building monitoring
232918.70232918.70
system remodeling
Songshan Lake production
base exhibition hall 246731.52 246731.52
renovation
Total 7265104.44 7265104.44 109414347.33 109414347.33
(2) Changes in major construction in process in this period
In RMB
Propor
Includi
Amou tion of
ng:
nt accum Accum
Other capital Interes
Openi Increas transfe Closin ulative ulative
decrea Project ized t
Project ng e in r-in to g engine capital Capital
Budget se in progre interes capital
name balanc this fixed balanc ering ized source
this ss t for ization
e period assets e invest interes
period the rate
in this ment t
current
period in the
period
budget
Fangd
a
Own
(Ganz
funds
hou)
and
Low-
33154 10918 18065 28983 loans
Carbo 87.42 Compl 5372 5372
0000. 1428. 4314. 5743. 3.15% from
n % eted 500.00 500.00
00 63 44 07 financi
Intellig
al
ent
institut
Manuf
ions
acturin
g Base
33154109181806528983
53725372
Total 0000. 1428. 4314. 5743. 3.15%
500.00500.00
00634407
(3) Provision for impairment of construction in progress during the current period
There is no sign of impairment to the Company's construction in process by December 31 2024.
(4) Impairment testing of construction in progress
□Applicable□ Inapplicable
212Annual Report 2024 of China Fangda Group Co. Ltd.
18. Use right assets
(1) Right-to-use assets
In RMB
Item Houses & buildings Transportation facilities Total
I. Book value
1. Opening balance 39794489.03 1959448.83 41753937.86
2. Increase in this period 6417768.38 7325612.86 13743381.24
(1) New Lease 6417768.38 7325612.86 13743381.24
3. Decrease in this
28376858.7028376858.70
period
(1) Lease Termination 28376858.70 28376858.70
4. Closing balance 17835398.71 9285061.69 27120460.40
II. Accumulative depreciation
1. Opening balance 19803178.07 1173930.21 20977108.28
2. Increase in this period 14364399.53 674034.72 15038434.25
(1) Provision 14364399.53 674034.72 15038434.25
3. Decrease in this
24578203.1724578203.17
period
(1) Disposal 24578203.17 24578203.17
4. Closing balance 9589374.43 1847964.93 11437339.36
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 8246024.28 7437096.76 15683121.04
2. Opening book value 19991310.96 785518.62 20776829.58
(2) Impairment testing of right-of-use assets
□Applicable ? Inapplicable
As of December 31 2024 there was no indication of impairment of the Company's right-of-use assets.
19. Intangible assets
(1) Intangible assets
In RMB
Trademarks
Item Land using right patents and know- Software Others Total
how
213Annual Report 2024 of China Fangda Group Co. Ltd.
I. Book value
1. Opening balance 152914836.88 9017372.69 23236225.88 185168435.45
2. Increase in this
42499.681031095.94720000.001793595.62
period
(1) Purchase 42499.68 1031095.94 1073595.62
(2) Increase due to
non-business 720000.00 720000.00
combination
3. Decrease in this
10905114.9610905114.96
period
(1) Disposal
(2) Converted to
investment 10905114.96 10905114.96
property
4. Closing balance 142009721.92 9059872.37 24267321.82 720000.00 176056916.11
II. Accumulative
amortization
1. Opening balance 23080721.81 8919025.53 13095478.23 45095225.57
2. Increase in this
5322570.9227343.962013033.517362948.39
period
(1) Provision 5322570.92 27343.96 2013033.51 7362948.39
3. Decrease in this
4297658.494297658.49
period
(1) Disposal
(2) Converted to
investment 4297658.49 4297658.49
property
4. Closing
24105634.248946369.4915108511.7448160515.47
balance
III. Impairment
provision
1. Opening balance
2. Increase in this
3844005.853844005.85
period
(1) Provision 3844005.85 3844005.85
3. Decrease in this
period
4. Closing balance 3844005.85 3844005.85
IV. Book value
1. Closing book
114060081.83113502.889158810.08720000.00124052394.79
value
2. Opening book
129834115.0798347.1610140747.65140073209.88
value
(2) Impairment test of intangible assets
□Applicable □ Inapplicable
The recoverable amount is determined as the net amount after deducting the disposal costs from the fair value.
214Annual Report 2024 of China Fangda Group Co. Ltd.
□Applicable □ Inapplicable
In RMB
Method for
Basis for
Recoverable Impairment determining fair Key
Item Book value determining
amount amount value and disposal parameters
key parameters
costs
Calculated and
Estimated Estimated determined
Land using
45151005.85 41307000.00 3844005.85 recoverable amount disposal according to
right
from disposal amount relevant policy
provisions
Total 45151005.85 41307000.00 3844005.85
The recoverable amount is determined based on the present value of estimated future cash flows.□ Applicable□ Inapplicable
20. Long-term amortizable expenses
In RMB
Amortized
Increase in this Other
Item Opening balance amount in this Closing balance
period decrease
period
Xuanfeng Chayuan village and
Zhuyuan village land transfer 916323.98 56101.56 860222.42
compensation
Sporadic decoration and
3015993.781873758.561142235.22
renovation costs of Fangda Town
Sporadic decoration and
renovation costs of Fangda 684013.47 108275.63 424855.20 367433.90
Center
Others 2132982.81 1038069.95 1499918.60 1671134.16
Total 6749314.04 1146345.58 3854633.92 4041025.70
21. Differed income tax assets and differed income tax liabilities
(1) Non-deducted deferred income tax assets
In RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment
227880793.9335025619.90301423517.6156628793.35
provision
Credit impairment
382932070.7260483324.52273785349.4042172039.47
provision
Unrealizable gross
108593435.6626573799.68111802930.4927117416.46
profit
Deductible loss 286565331.75 67193424.59 130536168.91 31566961.10
Anticipated liabilities 4191535.03 628730.25 4842411.47 726361.72
Unrealized investment
281712399.1555842834.35281819399.9255869584.56
income
Deferred earning 5946064.06 1041584.25 3922402.14 744121.83
Change in fair value 8623065.19 1303042.83 9127633.52 1369145.03
215Annual Report 2024 of China Fangda Group Co. Ltd.
Lease liabilities 15352065.96 2788081.55 20573028.70 4335420.74
Accrued and unpaid
16012293.284003073.3316543205.264135801.32
land tax
Reserved expense 36589539.42 5488430.92 36216407.02 5434461.06
Tax and accounting
differences of overseas 8617276.57 2585182.97
subsidiaries
Total 1383015870.72 262957129.14 1190592454.44 230100106.64
(2) Non-deducted deferred income tax liabilities
In RMB
Closing balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
Change in fair value 4296974960.10 1071313064.75 4161500052.20 1040357639.32
Acquire premium to
1535605.48383901.371535605.47383901.37
form inventory
Use right assets 15683121.04 2901986.66 20776829.58 4110042.13
Estimated gross margin
when Fangda Town
records income but 24131708.41 6032927.10 29608338.87 7402084.72
does not reach the
taxable income level
Rental income 26717859.03 6679464.47 28537396.58 7134349.15
Total 4365043254.06 1087311344.35 4241958222.70 1059388016.69
(3) Net deferred income tax assets or liabilities listed
In RMB
Offset balance of Deferred income tax Offset balance of
Deferred income tax
deferred income tax assets and liabilities at deferred income tax
Item assets and liabilities at
assets or liabilities after the beginning of the assets or liabilities after
the end of the period
offsetting period offsetting
Deferred income tax
56970202.43205986926.7147241557.57182858549.07
assets
Deferred income tax
56970202.431030341141.9247241557.571012146459.12
liabilities
(4) Details of unrecognized deferred income tax assets
In RMB
Item Closing balance Opening balance
Deductible temporary difference 434437.85 462778.59
Deductible loss 383366.61 17530215.40
Total 817804.46 17992993.99
(5) Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
216Annual Report 2024 of China Fangda Group Co. Ltd.
Year Closing amount Opening amount Remarks
20241276235.76
20252679.34213129.83
2026449.912355213.17
2027125759.623698098.44
2028122872.189987538.20
2029 and later 131605.56
Total 383366.61 17530215.40
22. Other non-current assets
In RMB
Closing balance Opening balance
Item Remaining Impairment Remaining Impairment
Book value Book value
book value provision book value provision
Contract assets 160412051.45 11257487.71 149154563.74 69887873.01 5127003.43 64760869.58
Prepaid house
and equipment 63504106.15 63504106.15 20034901.32 20034901.32
amount
Others 2004000.00 2004000.00
Total 223916157.60 11257487.71 212658669.89 91926774.33 5127003.43 86799770.90
23. Assets with restricted ownership or use rights
In RMB
Closing balance Beginning of the period
Item Remaining Type of Restricted Remaining Type of Restricted
Book value Book value
book value restriction situation book value restriction situation
For pledge For pledge
Monetary 46005212 46005212 or Various 64548999 64548999 or Various
capital 5.50 5.50 restricted deposits 7.82 7.82 restricted deposits
use use
Bills Bills
For For
endorsed or endorsed or
Notes 34500685. 34490806. endorseme 27937899. 27843496. endorseme
discounted discounted
receivable 65 03 nt or 17 17 nt or
but not yet but not yet
discounting discounting
due due
in fixed 36276074 35597842 Used as Loan by 45915995. 43108073. Used as Loan by
assets 1.16 5.04 collateral pledge 84 24 collateral pledge
Intangible 24179649. 23212463. Used as Loan by
assets 75 67 collateral pledge
Account 34364041. 33851277. Loan by 39392140. 38094032. Loan by
For pledge For pledge
receivable 60 04 pledge 71 45 pledge
Investment 18224831 18224831 Used as Loan by 19432870 19432870 Used as Loan by
real estate 72.10 72.10 collateral pledge 98.56 98.56 collateral pledge
Non-
current 32712027 32712027 Loan by
For pledge
assets due 3.54 3.54 pledge
in 1 year
100% stake 100% stake
Equity 20000000 20000000 20000000 20000000
For pledge in Fangda For pledge in Fangda
pledge 0.00 0.00 0.00 0.00
Property Property
217Annual Report 2024 of China Fangda Group Co. Ltd.
Developme Developme
nt held by nt held by
the the
Company Company
29383404293006823229143432249429
Total
15.7669.3805.6471.78
24. Short-term borrowings
(1) Classification of short-term borrowings
In RMB
Item Closing balance Opening balance
Guarantee loan 720642744.49 711492580.56
Credit borrow 300270416.67
Guarantee and pledge loan 943053677.99 1184641572.44
Other loans 11650469.54
Total 1663696422.48 2208055039.21
Explanation of short-term loan classification: At the end of the period guaranteed loans include an amount of
RMB626563805.58 guaranteed by the Company for its subsidiary Fangda Construction Technology and an amount of
RMB94078938.91 guaranteed by the Company for its subsidiary Fangda Zhiyuan Technology. At the end of the period
guaranteed and pledged loans include an amount of RMB892984789.10 guaranteed by the Company for its subsidiary Fangda
Construction Technology and pledged by Fangda Construction Technology with its held deposits; an amount of
RMB40055111.11 guaranteed by the Company and Shenzhen High-tech Investment and Financing Guarantee Co. Ltd. for
Fangda Construction Technology and pledged by Fangda Construction Technology with its intellectual properties and "Unitized
Ceramic Panel Curtain Wall"; an amount of RMB10013777.78 guaranteed by the Company and Shenzhen High-tech Investment
and Financing Guarantee Co. Ltd. for its subsidiary Yunzhu Technology and pledged by Yunzhu Technology with its intellectual
properties "Utility Model Patent for a Curtain Wall Honeycomb Panel Connection Structure" and "Utility Model Patent for a
Bright Frame Curtain Wall Structure."
25. Derivative financial liabilities
In RMB
Item Closing balance Opening balance
Futures contracts 1520625.00
Total 1520625.00
26. Notes payable
In RMB
Type Closing balance Opening balance
218Annual Report 2024 of China Fangda Group Co. Ltd.
Commercial acceptance 8958406.41 8781696.46
Bank acceptance 672229721.56 860105250.33
Total 681188127.97 868886946.79
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
1528510873.881374752105.25
repayable
Payable installation and implementation
558215149.23481683031.93
fees
Construction payable 27062009.47 86851302.81
Others 32806857.99 29007342.28
Total 2146594890.57 1972293782.27
(2) Significant accounts payable older than one year or past due
There are no significant accounts payable overdue or with an aging over one year at the end of the period.
28. Other payables
In RMB
Item Closing balance Opening balance
Other payables 120918002.02 117581764.15
Total 120918002.02 117581764.15
(1) Other payables
1) Other payables presented by nature
In RMB
Item Closing balance Opening balance
Performance and quality deposit 42955873.85 40096446.17
Deposit 22843813.76 24659670.94
Reserved expense 5336051.21 4785143.40
Others 49782263.20 48040503.64
Total 120918002.02 117581764.15
(2) Significant other accounts payable older than 1 year or past due
In RMB
Item Closing balance Reason
Shenzhen Yikang Real Estate Co. Ltd. 26159711.72 Payment paid as agreed in the contract
219Annual Report 2024 of China Fangda Group Co. Ltd.
Total 26159711.72
29. Prepayment received
(1) Prepayment received
In RMB
Item Closing balance Opening balance
Rent received in advance 1513398.39 1432885.03
Total 1513398.39 1432885.03
30. Contract liabilities
In RMB
Item Closing balance Opening balance
Project funds collected in advance 259315011.77 175345246.29
Real estate sales payment 1261218.35
Material loan 8934838.06 21432889.85
Others 344191.43 124854.98
Total 268594041.26 198164209.47
31. Employees' wage payable
(1) Employees' wage payable
In RMB
Item Opening balance Increase Decrease Closing balance
1. Short-term remuneration 73557667.19 453162042.83 456773086.90 69946623.12
2. Retirement pension program-
381396.0128148338.8327767165.11762569.73
defined contribution plan
3. Dismiss compensation 124049.06 14696713.58 9286307.52 5534455.12
Total 74063112.26 496007095.24 493826559.53 76243647.97
(2) Short-term remuneration
In RMB
Item Opening balance Increase Decrease Closing balance
1. Wage bonus
allowance and 72008514.84 415218703.20 418637124.08 68590093.96
subsidies
2. Employee welfare 321678.16 13439222.07 13533036.17 227864.06
3. Social insurance 142502.10 12290261.29 12245533.89 187229.50
Including: medical
118083.988723480.348671254.33170309.99
insurance
Labor injury
5534.391193882.791188934.0610483.12
insurance
Breeding 18883.73 883098.16 895545.50 6436.39
220Annual Report 2024 of China Fangda Group Co. Ltd.
insurance
Medical
229200.00229200.00
insurance
Unemployment
1260600.001260600.00
insurance
4. Housing fund 143003.33 10966038.78 11035669.88 73372.23
5. Labor union budget
and staff education 542240.97 1109311.00 1321722.88 329829.09
fund
6. Short-term paid
399727.79138506.49538234.28
leave
Total 73557667.19 453162042.83 456773086.90 69946623.12
(3) Defined contribution plan
In RMB
Item Opening balance Increase Decrease Closing balance
1. Basic pension 373813.17 27034102.31 26657009.38 750906.10
2. Unemployment
7582.841114236.521110155.7311663.63
insurance
Total 381396.01 28148338.83 27767165.11 762569.73
Other notes: Due to the relocation of the Company's production site an accrual of RMB10301966.12 has been made for
employee settlement expenses related to the termination of labor contracts of which RMB5042865.12 is yet to be paid.
32. Taxes payable
In RMB
Item Closing balance Opening balance
VAT 5014443.15 5063851.12
Consumption service tax 237874.41 10359.29
Enterprise income tax 22749953.33 13798160.21
Personal income tax 1436564.89 1750380.58
City maintenance and construction tax 442894.30 636181.87
Land using tax 342015.86 608959.21
Property tax 1433309.14 2656539.62
Education surtax 194329.75 273885.15
Local education surtax 129553.00 182589.47
Land VAT 16012293.28 16543205.26
Others 853886.08 850956.77
Total 48847117.19 42375068.55
33. Non-current liabilities due within 1 year
In RMB
Item Closing balance Opening balance
221Annual Report 2024 of China Fangda Group Co. Ltd.
Long-term loans due within 1 year 123355127.55 914958.90
Lease liabilities due within one year 5114390.19 13897158.66
Long-term payables due within 1 year 49323018.90
Provisions expected to mature within one
2905143.31
year
Total 131374661.05 64135136.46
34. Other current liabilities
In RMB
Item Closing balance Opening balance
Unterminated notes receivable 21426278.75 27937899.17
Substituted money on VAT 29409280.92 25586755.88
Total 50835559.67 53524655.05
35. Long-term borrowings
(1) Classification of long-term borrowings
In RMB
Item Closing balance Opening balance
Guarantee mortgage and pledge loan 1260355127.55 660914958.90
Less: Long-term loans due within 1 year 123355127.55 914958.90
Total 1137000000.00 660000000.00
Notes to classification of long-term borrowings:
(1) Among the aforementioned guaranteed mortgaged and pledged loans an amount of RMB660795616.44 is pledged with
100% equity of the subsidiary Fangda Real Estate directly and indirectly held by the Company and the receivables from rental
properties of Fangda Town held by the Company. An amount of RMB30028875.00 is guaranteed by the Company for its
subsidiary Fangda Intelligent Manufacturing and mortgaged by Fangda Intelligent Manufacturing with its fixed assets and
industrial land. An amount of RMB299270761.11 is guaranteed by the Company for its subsidiary Fangda Construction
Technology.
(2) The interest rate range for long-term borrowings is 2.5% to 5%.
36. Lease liabilities
In RMB
Item Closing balance Opening balance
Lease payments 18828149.71 23255219.85
Less: unrecognized financing expenses 3061152.04 2682191.15
222Annual Report 2024 of China Fangda Group Co. Ltd.
Less: lease liabilities due within one year 5114390.19 13897158.66
Total 10652607.48 6675870.04
37. Long-term payables
In RMB
Item Closing balance Opening balance
Long-term payable 48400000.00
Total 48400000.00
(1) Long term accounts payable listed by nature
In RMB
Item Closing balance Opening balance
Equity repurchase payment 97723018.90
Less: long-term payables due within one
49323018.90
year
Total 48400000.00
38. Anticipated liabilities
In RMB
Item Closing balance Opening balance Reason
Loss contract to be executed 369328.45 193502.52
Maintenance fee 917063.27 4648908.95 Product quality warranty
Total 1286391.72 4842411.47
39. Deferred earning
In RMB
Item Opening balance Increase Decrease Closing balance Reason
Government See the following
8978678.722321892.00630958.5910669612.13
subsidy table
Total 8978678.72 2321892.00 630958.59 10669612.13 --
Others:
Amount
December 31 Amount of included in Other misc.Item non- gains recorded Other December 31 Related to2023 new subsidy operating in this period change 2024 assets/earning
revenue
Railway transport
screen door
controlling system
and information 3458.27 3458.27 Assets-related
transmission
technology
Major investment
project prize from
Industry and 1395238.70 57142.80 1338095.90 Assets-related
Trade
223Annual Report 2024 of China Fangda Group Co. Ltd.
Amount
Item December 31 Amount of
included in Other misc.non- gains recorded Other December 31 Related to2023 new subsidy operating in this period change 2024 assets/earning
revenue
Development
Division of
Dongguan
Finance Bureau
Distributed PV
power generation
project subsidy
sponsored by 293750.33 24999.96 268750.37 Assets-related
Dongguan Reform
and Development
Commission
Subsidized land
transfer 162376.31 3725.64 158650.67 Assets-related
Special subsidy
for industrial
transformation 1150688.31 151739.16 998949.15 Assets-related
upgrading and
development
Enterprise
informationization
subsidy project of
Shenzhen Small 276000.00 48000.00 228000.00 Assets-related
and Medium
Enterprise Service
Agency
National Industry
Revitalization and
Technology 4762526.30 307728.60 4454797.70 Assets-related
Renovation
Project fund
Subsidy for new
plant 934640.50 26143.80 908496.70 Assets-related
Land subsidy
funds 2321892.00 8020.36 2313871.64 Assets-related
Total 8978678.72 2321892.00 630958.59 10669612.13
40. Capital share
In RMB
Change (+-)
Opening balance Issued Bonus Transferred Closing balance
new Others Subtotal
shares from reserves
shares
Total of
capital 1073874227.00 1073874227.00
shares
41. Capital reserve
In RMB
Item Opening balance Increase Decrease Closing balance
Capital premium (share capital
10005491.057101640.072903850.98
premium)
224Annual Report 2024 of China Fangda Group Co. Ltd.
Other capital reserves 1454097.35 1454097.35
Total 11459588.40 7101640.07 4357948.33
Note: The decrease in capital premium during the current period is due to the impact of acquiring minority shareholders' equity
in the subsidiary Fangda Zhiyuan.
42. Other miscellaneous income
In RMB
Amount occurred in the current period
Less: Less:
amount amount
written into written into After-tax
After-tax
Opening other gains other gains amount Closing
Item Amount Less: amount
balance and and attributedbefore Income tax attributed balance
transferred transferred to minority
income tax expenses to the
into into shareholder
parent
gain/loss in gain/loss in s
previous previous
terms terms
I. Other
comprehen
sive
income that
---
will not be 21421931.
25201209.21421931.3779277.5
subsequentl 75
27752
y
reclassified
into profit
and loss
Including:
Fair value
---
change of 21421931.
25201209.21421931.3779277.5
investment 75
27752
in other
equity tools
2. Other
misc.incomes
that will be 48323080. 15005536 36197928. 11386121 16218429
-3771.05
re- 06 9.63 70 1.98 2.04
classified
into gain
and loss
Cash flow - - -
-
hedge 170878.62 1694362.0 1440207.7 1269329.1
254154.30
reserve 6 6 4
Translation
difference
---
of foreign 236706.94 -3771.05
773512.29769741.24533034.30
exchange
statement
225Annual Report 2024 of China Fangda Group Co. Ltd.
Investment
real estate
47915494.1525232436452083.1160711616398665
measured
503.98000.985.48
at fair
value
Other -
23121870.1500553636197928.1352831415840501
miscellane 21421931. -3771.05
799.63703.734.52
ous income 75
43. Surplus reserves
In RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
79324940.435728420.021078644.2383974716.22
reserves
Total 79324940.43 5728420.02 1078644.23 83974716.22
Note: The decrease in the statutory surplus reserve during the current period is due to the fair value change of the Company's
other equity instrument investments in Shenyang Fangda. As the Company has gone bankrupt during the current period the
recognition has been terminated and the amount has been transferred from other comprehensive income to retained earnings.
44. Retained profit
In RMB
Item Current period Last period
Adjustment on retained profit of previous period 4772359940.45 4553295402.30
Retained profit adjusted at beginning of year 4772359940.45 4553295402.30
Plus: Net profit attributable to owners of the parent 144813705.53 272758249.50
Less: Statutory surplus reserves 5728420.02
Common share dividend payable 85909938.16 53693711.35
Others 20343287.52
Closing retained profit 4805192000.28 4772359940.45
Note: Other changes are due to the fair value change of the Company's other equity instrument investments in Shenyang Fangda. As
the Company has gone bankrupt during the current period the recognition has been terminated and the amount has been transferred
from other comprehensive income to retained earnings.
45. Operational revenue and costs
In RMB
Amount occurred in the current period Occurred in previous period
Item
Income Cost Income Cost
Main business 4373119434.75 3545394888.31 4118334153.38 3389441885.55
226Annual Report 2024 of China Fangda Group Co. Ltd.
Other businesses 51104762.96 42747408.17 173870562.63 22680137.25
Total 4424224197.71 3588142296.48 4292204716.01 3412122022.80
Is the lower of the net profit before and after deducting the non recurring profit and loss negative
□ Yes□ No
Breakdown of operating revenues and operating costs:
In RMB
Segment 1- Segment 2 - rail Segment 3 - real Segment 4 - new Segment 5 -
Contra Totalcurtain wall transit division estate segment energy other segments
ct
classifi Operat Operat Operat Operat Operat OperatTurnov Turnov Turnov Turnov Turnov Turnov
cation ing ing ing ing ing inger er er er er er
cost cost cost cost cost cost
3555308761282434682222757446182591487544243588
Busine 8032 81137
99691899840581.2301.2168.713.1004.0528.82241914229
ss type 304.65 .33
5.260.010134635107.716.48
Includi
ng:
Curtai
n wall
3555308735553087
system
99691899849969189984
and
5.260.015.260.01
materi
als
Subwa
y
61282434686128243468
screen
0581.2301.0581.2301.
door
01340134
and
service
Real
estate
rental
and
22227574462222757446
sales
2168.713.12168.713.1
and
635635
propert
y
service
s
PV
power
1825918259
genera 8032 8032
004.0004.0
tion 304.65 304.65
11
produc
ts
1487514875
8113781137
Others 528.8 528.8.33.33
00
By
3555308761282434682222757446182591487544243588
operati 8032 81137
99691899840581.2301.2168.713.1004.0528.82241914229
ng 304.65 .33
5.260.010134635107.716.48
region
Includi
ng:
227Annual Report 2024 of China Fangda Group Co. Ltd.
3423299434885287102222757446182591487540273347
In 8032 81137
72226558129879.4725.2168.713.1004.0528.89888522300
China 304.65 .33
9.527.935935635100.558.41
132279334126396147573962324091
Out of
4645.712.00701.7575.5347.9288.
China
74842991607
(1) The main business income is listed as follows according to the breakdown information:
In 2024 the information of operating revenue broken down by revenue recognition time is as follows:
Item 2024 (RMB) 2023 (RMB)
Revenue recognized at a certain point in time 545412251.88 422284637.84
Revenue recognized over a period of time 3878811945.83 3869920078.17
Total 4424224197.71 4292204716.01
(2) Performance obligation
For curtain wall materials real estate and other commodity sales transactions the Company completes the performance
obligations when the customer obtains the control of the relevant commodities; for providing building curtain wall Metro screen
door design production and installation and other service transactions the Company confirms the completed performance
obligations according to the performance progress during the whole service period. The contract price of the Company is usually
due within one year and there is no significant financing component.
(3) Information related to remaining performance obligations
As of December 31 2024 the Company's remaining contractual obligations are mainly related to the Company's
engineering contracts and the remaining contractual obligations are expected to be recognized as revenue according to the
performance progress in the future performance period of the corresponding engineering contracts.The amount of revenue corresponding to the performance obligations that have been signed but not yet performed or not
yet performed at the end of the reporting period is RMB8383716494.29 of which RMB4137298056.27 is expected to be
recognized in 2025 and RMB2489095405.25 is expected to be recognized in 2026 RMB1757323032.76 is expected to be
recognized in 2027 and beyond.The Company needs to comply with the disclosure requirements of the real estate industry in the Guidelines for the Self-
discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.
228Annual Report 2024 of China Fangda Group Co. Ltd.
Top-5 projects in terms of income received and recognized in the reporting period:
In RMB
No. Project name Balance
1 Fangda Town 124990513.02
2 Nanchang Fangda Center 22239065.45
46. Taxes and surcharges
In RMB
Item Amount occurred in the current period Occurred in previous period
City maintenance and construction tax 6526296.57 7636023.14
Education surtax 4894545.68 5578210.15
Property tax 20235700.43 19326390.99
Land using tax 1967709.57 1939918.65
Stamp tax 5125991.22 4994254.63
Land VAT 4535890.32 792772.36
Others 78257.55 86827.30
Total 43364391.34 40354397.22
47. Management expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 137729076.22 114574462.83
Maintenance costs 307817.06 169712.22
Agencies 6918578.15 14255903.98
Depreciation and amortization 17246520.96 15223179.96
Office expense 5648928.52 5653172.50
Entertainment expense 7993709.32 6244445.47
Rental 2254738.54 2693465.85
Lawsuit 296491.06 2349777.80
Travel expense 4337710.40 3709314.11
Property management fee 1102485.41 910548.22
Water and electricity 1204391.67 765449.98
Material consumption 342404.87 226667.84
Others 6284583.02 7898655.05
Total 191667435.20 174674755.81
48. Sales expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 30449690.40 28836318.58
Sales agency fee 1595221.91 1614681.20
Entertainment expense 8485462.87 6830220.67
Travel expense 2955271.55 3382495.03
Advertisement and promotion fee 2144452.78 2171392.31
Rental 629569.36 232462.72
229Annual Report 2024 of China Fangda Group Co. Ltd.
Depreciation and amortization 2269054.34 780990.05
Office costs 895531.77 650584.73
Material consumption 1352405.66 1260859.63
Others 4363492.49 5249160.37
Total 55140153.13 51009165.29
49. R&D cost
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 100670006.36 103430062.05
Material costs 50544384.90 55562482.97
Agencies 11574101.52 8698692.37
Depreciation costs 3722562.74 2081830.87
Amortization of intangible assets 1008134.37 1024410.27
Travel expense 458913.41 703972.61
Rental 391107.49 501204.01
Others 2662160.94 8068146.10
Total 171031371.73 180070801.25
50. Financial expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Interest expense 60377020.35 87186232.75
Including: interest expense of lease
1270121.44873165.18
liabilities
Less: discount government subsidies 2616200.00 -131680.00
Less: Interest income 19230549.61 29144115.88
Net interest expenditure 38530270.74 58173796.87
Exchange net loss -3073376.55 -8640174.72
Discount expense 23766144.18 18204015.63
Commission charges and others 6074894.67 5089307.07
Total 65297933.04 72826944.85
51. Other gains
In RMB
Source Amount occurred in the current period Occurred in previous period
Government subsidy 14027285.85 12902308.18
Handling fees for individual income tax
282947.24292496.06
withholding
Additional deduction of input tax 5373030.49 3877999.70
Others 40604.32
Total 19683263.58 17113408.26
52. Income from fair value fluctuation
In RMB
Source of income from fluctuation of fair
Amount occurred in the current period Occurred in previous period
value
230Annual Report 2024 of China Fangda Group Co. Ltd.
Investment real estate measured at fair
-18397296.67-28482701.26
value
Other non-current financial assets 3098.25 -51817.51
Total -18394198.42 -28534518.77
53. Investment income
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Gains from long-term equity investment measured by
-70043.43-212024.74
equity
Investment income of trading financial assets during the
-50000.00
holding period
Investment income from disposal of trading financial
-1666256.28611295.00
assets
Debt restructuring gains -118701.78
Financial assets derecognized as a result of amortized
-2538217.26-4656380.30
cost
Income from derecognition of other financial assets
-154143.85-255024.54
measured at fair value
Total -4547362.60 -4562134.58
54. Credit impairment loss
In RMB
Item Amount occurred in the current period Occurred in previous period
Bad debt loss of notes receivable -237783.09 1874688.90
Bad debt loss of account receivable -109795711.27 -40828905.43
Bad debt loss of other receivables -653357.89 3902552.21
Total -110686852.25 -35051664.32
55. Assets impairment loss
In RMB
Item Amount occurred in the current period Occurred in previous period
Fixed assets impairment loss -2500000.00
Asset impairment loss -3844005.85
Contract asset impairment loss -28916573.64 6020287.93
Total -35260579.49 6020287.93
56. Assets disposal gains
In RMB
Amount occurred in the
Source Occurred in previous period
current period
Disposition not classified as possession of fixed assets to be sold -571500.30 58292.27
231Annual Report 2024 of China Fangda Group Co. Ltd.
construction in progress productive biological assets and
intangible assets
Including: Fixed assets -571500.30 58292.27
Disposal of use right assets 71307.49 323279.85
Total -500192.81 381572.12
57. Non-business income
In RMB
Amount occurred in the Occurred in previous Amount accounted into the current
Item
current period period accidental gain/loss
Penalty income 169756.38 159340.58 169756.38
Compensation received 110450.67 1906958.87 110450.67
Payable account not able to
1105933.491105933.49
be paid
Others 291705.96 572991.76 291705.96
Gains from damage and
34565.7934565.79
write-off of non-current assets
Total 1712412.29 2639291.21 1712412.29
58. Non-business expenses
In RMB
Amount occurred in the Occurred in previous Amount accounted into the
Item
current period period current accidental gain/loss
Donation 50000.00 356897.00 50000.00
Loss from retirement of damaged
636096.88143132.97636096.88
non-current assets
Penalty and overdue fine 724692.03 653180.55 724692.03
Others 815503.59 223265.91 815503.59
Total 2226292.50 1376476.43 2226292.50
59. 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 31496973.61 53600826.25
Deferred income tax expenses -18304449.34 -12783330.37
Total 13192524.27 40817495.88
(2) Adjustment process of accounting profit and income tax expense
In RMB
Item Amount occurred in the current period
Total profit 159360814.59
Income tax expenses calculated based on the legal (or applicable) tax rates 39840203.65
Impacts of different tax rates applicable for some subsidiaries -8294886.53
232Annual Report 2024 of China Fangda Group Co. Ltd.
Impacts of income tax before adjustment 3211604.88
Impact of non-taxable income -76932.15
Impacts of non-deductible cost expense and loss 4712097.88
Impacts of using deductible loss of unrecognized deferred income tax assets -1309161.43
Deductible temporary difference and deductible loss of unrecognized deferred
21524.27
income tax assets
Additional deduction of R&D expense -25192633.13
Profit and loss of associates and joint ventures calculated using the equity
17510.86
method
Effect of tax rate change on deferred income tax -910541.83
Impact of deductible losses of deferred income tax assets recognized in the
1173737.80
previous period exceeding the recoverable period
Income tax expenses 13192524.27
60. Other miscellaneous income
Refer to Note 42 of this section Other Comprehensive Income.
61. Notes to the cash flow statement
(1) Cash inflow related to operation
Other cash received from business operations
In RMB
Item Amount occurred in the current period Occurred in previous period
Interest income 13149043.03 15162422.54
Subsidy income 14815630.09 9796358.90
Retrieving of bidding deposits 32822259.64 40653182.62
Other operating accounts 26028503.64 40774700.30
Net receipt of deposits such as bills of
28208714.36
exchange
Total 115024150.76 106386664.36
Other cash paid for business operations
In RMB
Item Amount occurred in the current period Occurred in previous period
Pocket expenses 127740024.89 140382530.54
Bidding deposit paid 35416621.23 30514126.58
Other trades 17528864.15 38434058.15
Net draft deposit net paid 58931587.09
Total 180685510.27 268262302.36
(2) Cash related to investment activities
Other cash paid for investment
In RMB
Item Amount occurred in the current period Occurred in previous period
Investment commission 50000.00
Settlement investment losses 1787676.30
233Annual Report 2024 of China Fangda Group Co. Ltd.
Total 1787676.30 50000.00
Significant cash payments related to investment activities
In RMB
Item Amount occurred in the current period Occurred in previous period
Acquisition of minority shareholders'
26616725.71
equity in Fangda Zhiyuan
Total 26616725.71
(3) Cash related to financing
Other cash received from financing activities
In RMB
Item Amount occurred in the current period Occurred in previous period
Recovery of loan deposits 133000000.00
Recovery of time deposits 330600944.44
Total 463600944.44
Other cash paid related to financing activities
In RMB
Item Amount occurred in the current period Occurred in previous period
Financing fee 3078784.45 1910251.87
Principal and interest of lease liabilities 16984180.17 16510621.53
Payment of loan deposits 142460000.00
Payment for repurchase of equity interest
98116151.32113473388.12
in Fangda Zhiyuan
Payment to minority shareholders due to
1221195.25
subsidiary liquidation
Total 119400311.19 274354261.52
Changes in liabilities arising from financing activities
□Applicable □ Inapplicable
In RMB
Increase Decrease
Opening
Item Non-cash Non-cash Closing balancebalance Change in cash Change in cash
change change
Short-term 2208055039. 2904675536. 3450885041. 1663696422.
1850888.00
loans 21 37 10 48
Dividend
92872670.1892872670.18
payable
Non-current
liabilities due in 64135136.46 0.00 131949671.67 67615290.39 128469517.74
1 year
Long-term 1137000000.
660000000.00599000000.000.000.00122000000.00
loans 00
Lease liabilities 6675870.04 0.00 12178149.14 0.00 8201411.70 10652607.48
Long-term
48400000.000.000.0048400000.000.00
payable
2987266045.3503675536.3659773001.2939818547.
Total 238851378.99 130201411.70
71376770
234Annual Report 2024 of China Fangda Group Co. Ltd.
(4) Explanation of cash flows presented on a net basis
Basis for adopting net
Item Relevant factual information Financial impact
presentation
Net margin paid on bills of Corresponding deposits for bills
exchange etc. of exchange are presented on a Quick turnaround and short
None
Net deposits received such as net basis according to changes maturity
bills of exchange in their balances
(5) Significant activities and financial effects that do not involve current cash receipts and disbursements
but affect the enterprise's financial position or may affect the enterprise's cash flows in the future
No
62. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB
Amount of the Previous
Supplementary information Amount of the Current Term
Term
1. Net profit adjusted to cash flow related to business operations
Net profit 146168290.32 276958898.33
Plus: Asset impairment provision 145947431.74 29031376.39
Fixed asset depreciation gas and petrol depreciation
32873765.2329636300.00
production goods depreciation
Depreciation of right to use assets 15038434.25 14476910.31
Amortization of intangible assets 7362948.39 5534923.47
Amortization of long-term amortizable expenses 3854633.92 4175586.27
Loss from disposal of fixed assets intangible assets and
500192.81-381572.12
other long-term assets ("-" for gains)
Loss from fixed asset discard ("-" for gains) 601531.09 143132.97
Loss from fair value fluctuation ("-" for gains) 18394198.42 28534518.77
Financial expenses ("-" for gains) 62507793.94 95144503.65
Investment losses ("-" for gains) 1855001.49 -349270.27
Decrease of deferred income tax asset ("-" for increase) -34722077.39 40194671.27
Increase of deferred income tax asset ("-" for increase) -6409546.15 -52978001.64
Decrease of inventory ("-" for increase) 42960388.63 -45092089.19
Decrease of operational receivable items ("-" for increase) -288233573.56 -372906407.75
Increase of operational receivable items ("-" for decrease) 93985965.94 306550308.71
Others 28208714.36 -58931587.09
Cash flow generated by business operations net 270894093.43 299742202.08
2. Major investment and financing activities with no cash involved
Debt transferred to assets
Convertible corporate bonds due within one year
Addition of right-of-use assets 13743381.24 17901587.49
235Annual Report 2024 of China Fangda Group Co. Ltd.
3. Net change in cash and cash equivalents:
Balance of cash at period end 1031725216.34 779661118.42
Less: Initial balance of cash 779661118.42 783677929.06
Add: Ending balance of cash equivalents
Less: Ending balance of cash equivalents
Net increase in cash and cash equivalents 252064097.92 -4016810.64
(2) Composition of cash and cash equivalents
In RMB
Item Closing balance Opening balance
I. Cash 1031725216.34 779661118.42
Including: Cash in stock 148.01 752.40
Bank savings can be used at any time 1024641201.90 765436788.41
Other monetary capital can be used at any time 7083866.43 14223577.61
III. Balance of cash and cash equivalents at end of term 1031725216.34 779661118.42
(3) Monetary funds other than cash and cash equivalents
In RMB
Reasons for not being cash
Item Amount of the Current Term Amount of the Previous Term
and cash equivalents
Various deposits 460052125.50 645489997.82 Use restricted
Total 460052125.50 645489997.82
(4) Supplier financing arrangements
* Terms and conditions of supplier financing arrangements
Supplier Financing Arrangement 1: The Company processes reverse factoring business through the "e-Credit" supply chain
financial service platform provided in cooperation with Jianxin Rongtong Co. Ltd. and China Construction Bank Corporation
Shenzhen Branch (hereinafter referred to as "CCB"). This service is for suppliers holding electronic debt certificates on the "e-
Credit" platform with payments due from the Company. Suppliers transfer the accounts receivable under the Company's electronic
debt certificates to CCB and apply for "e-Credit" business services. CCB evaluates and analyzes the application and if conditions
are met provides "e-Credit" business services to suppliers. The Company's obligation to fulfill payment under the electronic debt
certificates is unconditional and irrevocable unaffected by any commercial disputes among parties involved in the circulation of
electronic debt certificates. The company does not claim offset or defense against this payment obligation. The Company will
transfer an amount equivalent to the electronic debt certificates on the promised payment date according to the business rules of
the "e-Credit" platform.
236Annual Report 2024 of China Fangda Group Co. Ltd.
Supplier financing arrangement 2: The Company processes reverse factoring business through the "e-Account" supply chain
financial service platform provided by the Agricultural Bank of China Shenzhen Overseas Chinese Town Branch (hereinafter
referred to as "ABC"). This service is for suppliers holding electronic debt certificates on the "e-Account" platform with payments
due from the Company. Suppliers transfer the accounts receivable under the Company's electronic debt certificates to ABC and
apply for "e-Account" business services. ABC evaluates and analyzes the application and if conditions are met provides "e-
Account" business services to suppliers. The Company's obligation to fulfill payment under the electronic debt certificates is
unconditional and irrevocable unaffected by any commercial disputes among parties involved in the circulation of electronic debt
certificates. The company does not claim offset or defense against this payment obligation. The company will transfer an amount
equivalent to the electronic debt certificates on the promised payment date according to the business rules of the "e-Account"
platform.Supplier financing arrangement 3: The Company has signed a Payment Agency Cooperation Agreement with China
Merchants Bank Corporation Shenzhen Branch authorizing the branch to deduct payments from the payment account according to
the Agency Payment Details provided by the group on the specified date. When suppliers initiate financing applications China
Merchants Bank Corporation Shenzhen Branch uses the Company's credit line to process domestic factoring services for suppliers.Upon maturity of the factoring the Company is only required to pay the factoring financing amount to China Merchants Bank
Corporation Shenzhen Branch without interest.* Financial Liabilities under Supplier Financing Arrangements Reported on the Balance Sheet and Their Book Value and
Amounts Received by Suppliers from Financing Providers
In RMB
Item December 31 2024 January 1 2024
Account payable 465016938.13 390132169.21
Including: Amounts received by suppliers 341199057.49 -
* Payment due date range for financial liabilities under supplier financing arrangements
Item December 31 2024
Financial liabilities under supplier financing arrangements 90-300 days from receipt of invoice
Comparable accounts payable not under supplier financing 0-180 days from receipt of invoice
237Annual Report 2024 of China Fangda Group Co. Ltd.
arrangements
63. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Closing foreign currency
Item Exchange rate Closing RMB balance
balance
Monetary capital 121724087.68
Including: USD 4446005.48 7.1884 31959660.43
HK Dollar 56349679.26 0.926 52182057.00
INR 36207844.47 0.084 3042732.64
Vietnamese currency 1666020450.00 0.0003 469924.39
SGD 1489480.22 5.3214 7926120.04
AUD 5781688.88 4.507 26058071.79
Philippine Peso 688013.00 0.1243 85521.39
Account receivable 26499393.16
Including: USD 706093.63 7.1884 5075683.44
HK Dollar 19588663.45 0.926 18139885.90
AUD 609202.07 4.507 2745673.73
INR 5621535.00 0.084 472377.59
SGD 12360.00 5.3214 65772.50
Contract assets 117500531.71
Including: USD 11023664.91 7.1884 79242512.83
INR 41669105.47 0.084 3501454.93
Euro 2436878.88 7.5257 18339219.39
SGD 500.00 5.3214 2660.70
AUD 1106608.38 4.507 4987483.97
HK Dollar 12339855.62 0.926 11427199.89
Other receivables 3528403.79
Including: USD 159577.82 7.1884 1147109.20
HK Dollar 66000.00 0.926 61118.64
AUD 29943.84 4.507 134956.89
INR 560655.41 0.084 47111.87
SGD 393664.33 5.3214 2094845.38
UAE Dirham 1000.00 1.9628 1962.78
Saudi Riyal 15000.00 1.9284 28926.26
Philippine Peso 99538.00 0.1243 12372.77
Account payable 13716720.68
Including: USD 497906.03 7.1884 3579147.71
HK Dollar 4943022.21 0.926 4577436.29
SGD 19193.50 5.3214 102136.29
INR 22881875.03 0.084 1922763.96
AUD 780782.71 4.507 3518987.67
Philippine Peso 130720.00 0.1243 16248.76
Other payables 2399887.18
Including: USD 276371.25 7.1884 1986667.09
HK Dollar 1175.27 0.926 1088.35
AUD 74906.47 4.507 337603.46
238Annual Report 2024 of China Fangda Group Co. Ltd.
Saudi Riyal 16675.20 1.9284 32156.74
SGD 6098.47 5.3214 32452.40
Philippine Peso 79800.00 0.1243 9919.14
(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
64. Leasing
(1) The Company is the leasee
□Applicable □ Inapplicable
Variable lease payments not included in the measurement of the lease liability
□ Applicable□ Inapplicable
Lease costs for short-term leases or low-value assets with simplified treatment
□Applicable □ Inapplicable
Current gains and losses and cash flows related to leases
Item 2024
Short term lease expenses with simplified treatment included in current profit and loss 37912641.43
Lease expenses of low value assets with simplified treatment included in current profit and loss
267467.65
(except short-term lease)
Interest expense on lease liabilities 1270121.44
Total cash outflow related to leasing 51854374.29
Involvement in sale-and-leaseback transactions: None.
(2) The Company as lessor
Operating leases as lessor
□Applicable □ Inapplicable
In RMB
Including: Income related to variable
Item Rental income lease payments not included in lease
receipts
Rental income 137236551.51 350971.03
Total 137236551.51 350971.03
Financing leases as lessor
□ Applicable□ Inapplicable
Undiscounted lease receipts for each of the next five years
239Annual Report 2024 of China Fangda Group Co. Ltd.
□Applicable □ Inapplicable
In RMB
Annual undiscounted lease receipts
Item
Closing amount Opening amount
First year 134938024.44 132605879.94
Second year 106208000.52 115552250.91
Third year 72916499.50 94134268.43
Fourth year 53731466.05 59112763.63
Fifth year 32774253.57 39342690.51
Total undiscounted lease receipts after
89046751.9790429704.69
five years
VIII. R&D expenses
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 100670006.36 103430062.05
Material costs 50544384.90 55562482.97
Agencies 11574101.52 8698692.37
Depreciation costs 3722562.74 2081830.87
Amortization of intangible assets 1008134.37 1024410.27
Travel expense 458913.41 703972.61
Rental 391107.49 501204.01
Others 2662160.94 8068146.10
Total 171031371.73 180070801.25
Including: Expensed R&D expenditure 171031371.73 180070801.25
IX. Change to Consolidation Scope
1. Change to the consolidation scope for other reasons
Change in the consolidation scope due to other reasons (such as new subsidiaries and liquidation of subsidiaries) and the
situations:
During the current period the scope of consolidation changed with the establishment of 5 new subsidiaries: Facade
Singapore Facade Philippines General Rail Technology Philippines Fangda Gulf DMCC and Global MEGA International
Holdings. Additionally through a non-business combination one new subsidiary was added: Fangda Construction Technology.Simultaneously three subsidiaries were deregistered during this period: Fangda Xunfu Investment Fangda Lifu Investment and
Fangda Investment.
240Annual Report 2024 of China Fangda Group Co. Ltd.
X. Equity in Other Entities
1. Interests in subsidiaries
(1) Group Composition
In RMB
Registered Place of Registered Shareholding percentage Obtaining
Company Business
capital business address Direct Indirect method
Shihui
International 21248100.0 Virgin Virgin
Investment 100.00% Incorporation
Holding Co. 0 Islands Islands
Ltd.Shenzhen
Hongjun 100000000.Shenzhen Shenzhen Investment 98.00% 2.00% Incorporation
Investment 00
Co. Ltd.Shenzhen
Project
Fangda
investment
Investment 237700000.Shenzhen Shenzhen and 99.00% 0.52% Incorporation
Partnership 00
investment
(Limited
consultancy
Partnership)
Production
Jiangxi and sales of
Fangda new-type
Intelligent 100000000. materials
Ganzhou Ganzhou 99.00% 1.00% Incorporation
Manufacturin 00 composite
g Technology materials and
Co. Ltd. production of
curtain walls
Designing
Shenzhen manufacturin
Fangda 600000000. g and
Shenzhen Shenzhen 98.66% 1.34% Incorporation
Jianke Group 00 installation
Co. Ltd. of curtain
walls
Dongguan Installation
Fangda New 272800000. and sales of
Dongguan Dongguan 100.00% Incorporation
Material Co. 00 building
Ltd. curtain walls
Chengdu Trusted
Fangda processing of
50000000.0
Construction Chengdu Chengdu building 100.00% Incorporation
0
Technology curtain wall
Co. Ltd. materials
Designing
manufacturin
Fangda
14545200.0 g and
Australia Australia Australia 100.00% Incorporation
0 installation
Co. Ltd.of curtain
walls
Fangda Designing
Southeast 3000000.00 Vietnam Vietnam manufacturin 100.00% Incorporation
Asia Co. g and
241Annual Report 2024 of China Fangda Group Co. Ltd.
Ltd. installation
of curtain
walls
Shanghai Intelligent
Fangda technology
100000000.
Zhijian Shanghai Shanghai new energy 30.00% 70.00% Incorporation
00
Technology automated
Co. Ltd technology
Design sale
Fangda
and
Jianke Hong
36594.00 Hong Kong Hong Kong installation 100.00% Incorporation
Kong Co.of building
Ltd.curtain wall
Construction
technology
intelligent
technology
Shanghai
automation
Fangda
50000000.0 technology
Jianzhi Shanghai Shanghai 100.00% Incorporation
0 design
Technology
production
Co. Ltd.and
installation
of building
curtain walls
Chengdu Building
Fangda decoration
50000000.0
Curtain Wall Chengdu Chengdu and other 100.00% Incorporation
0
Technology construction
Co. Ltd. industry
Shenzhen
Production
Fangda
50000000.0 and sales of
Jianchuang Shenzhen Shenzhen 100.00% Incorporation
0 building
Technology
curtain walls
Co. Ltd.Shenzhen Design and
Fangda New 100000000. construction
Shenzhen Shenzhen 99.00% 1.00% Incorporation
Energy Co. 00 of PV power
Ltd. plants
Pingxiang
Design and
Fangda
10000000.0 construction
Luxin New Pingxiang Pingxiang 100.00% Incorporation
0 of PV power
Energy Co.plants
Ltd.Nanchang
Design and
Xinjian
10000000.0 construction
Fangda New Nanchang Nanchang 100.00% Incorporation
0 of PV power
Energy Co.plants
Ltd.Dongguan Design and
Fangda New 10000000.0 construction
Dongguan Dongguan 100.00% Incorporation
Energy Co. 0 of PV power
Ltd. plants
Shenzhen Project
Xunfu investment
100000.00 Shenzhen Shenzhen 100.00% Incorporation
Investment and
Co. Ltd investment
242Annual Report 2024 of China Fangda Group Co. Ltd.
consultancy
Project
Shenzhen
investment
Lifu
1000000.00 Shenzhen Shenzhen and 52.00% Incorporation
Investment
investment
Co. Ltd
consultancy
Production
Fangda processing
Zhichuang 105000000. and
Shenzhen Shenzhen 51.00% 49.00% Incorporation
Technology 00 installation
Co. Ltd. of subway
screen doors
Shenzhen
Qianhai
Software
Kechuangyu 5000000.00 Shenzhen Shenzhen 100.00% Incorporation
development
an Software
Co. Ltd.Fangda
Zhiyuan
Metro screen
Technology 8435.80 Hong Kong Hong Kong 100.00% Incorporation
door
(Hong Kong)
Co. Ltd.Production
Fangda
processing
Zhiyuan
10000000.0 and
Technology Wuhan Wuhan 100.00% Incorporation
0 installation
(Wuhan) Co.of subway
Ltd.screen doors
Fangda
Production
Zhiyuan
processing
Railway
and
Transportatio 1000000.00 Dongguan Dongguan 100.00% Incorporation
installation
n Equipment
of subway
(Dongguan)
screen doors
Co.Production
Fangda
processing
Zhiyuan
and
Technology 1000000.00 Nanchang Nanchang 100.00% Incorporation
installation
(Nanchang)
of subway
Co. Ltd.screen doors
Production
General processing
Railway and
47880.30 Singapore Singapore 100.00% Incorporation
Technology installation
Ltd. of subway
screen doors
Shenzhen
Fangda Real estate
200000000.
Property Shenzhen Shenzhen development 99.00% 1.00% Incorporation
00
Development and operation
Co. Ltd.Shenzhen
Fangda
10000000.0 Property
Property Shenzhen Shenzhen 100.00% Incorporation
0 management
Management
Co. Ltd.
243Annual Report 2024 of China Fangda Group Co. Ltd.
Fangda
(Jiangxi) Real estate
100000000.
Property Nanchang Nanchang development 100.00% Incorporation
00
Development and operation
Co. Ltd.Technology
development
and sales;
Shenzhen Invest in
Fangda industry;
50000000.0
Yunzhi Shenzhen Shenzhen Operation 100.00% Incorporation
0
Technology management
Co. Ltd. of science
and
technology
park
Shenzhen
Zhongrong
121000000. Business
Litai Shenzhen Shenzhen 55.00% Purchase
00 service
Investment
Co. Ltd.Production
and sales of
Fangda New new-type
Materials 99328800.0 materials
Nanchang Nanchang 75.00% 25.00% Incorporation
(Jiangxi) Co. 0 composite
Ltd. materials and
production of
curtain walls
Inspection
technical
service and
Shenzhen Consolidatio
consultation
Fangda n of entities
10000000.0 of building
Yunzhu Shenzhen Shenzhen 100.00% under
0 safety and
Technology common
building
Co. Ltd. control
energy
saving
system
Inspection
technical
service and
Shenzhen Consolidatio
consultation
Yunzhu n of entities
of building
Testing 5000000.00 Shenzhen Shenzhen 100.00% under
safety and
Technology common
building
Co. Ltd. control
energy
saving
system
Shenzhen
Installation
Fangda
50000000.0 and sales of Non-business
Construction Shenzhen Shenzhen 100.00%
0 building combination
Technology
curtain walls
Co. Ltd.Fangda Installation
Facade 1596420.00 Singapore Singapore and sales of 100.00% Incorporation
Singapore building
244Annual Report 2024 of China Fangda Group Co. Ltd.
Pte. Ltd. curtain walls
Fangda Installation
Facade and sales of
1437680.00 Philippines Philippines 99.00% Incorporation
Philippines building
Inc. curtain walls
General Rail Metro screen
Technology door sales
1437680.00 Philippines Philippines 100.00% Incorporation
Philippines and
Inc. installation
Installation
Fangda Gulf and sales of
785113.60 Dubai Dubai 100.00% Incorporation
DMCC building
curtain walls
GLOBAL Designing
MEGA manufacturin
INTERNATI g and
4313040.00 Saudi Arabia Saudi Arabia 100.00% Incorporation
ONAL installation
HOLDINGS of curtain
LIMITED walls
Other notes: Fangda Investment Fangda Lifu Investment and Fangda Xunfu Investment have been deregistered during this period.
(2) Major non wholly-owned subsidiaries
In RMB
Profit and loss Dividend to be Interest balance of
Shareholding of
Company attributed to minority distributed to minority minority shareholders
minority shareholders
shareholders shareholders in the end of the period
Zhongrong Litai 45.00% 8583.38 48308010.96
Fangda Zhiyuan
1346867.376962732.02
Technology
Other notes: During this period the Company's subsidiary Fangda Construction Technology acquired all minority shareholder
equity of Fangda Zhiyuan Technology making Fangda Zhiyuan Technology a wholly-owned subsidiary of the Company.
(3) Financial highlights of major non wholly owned subsidiaries
In RMB
Closing balance Opening balance
Compa Curren Non- Curren Non-Non- Total Total Non- Total Total
ny Curren t current Curren t currentcurrent of liabiliti current of liabiliti
t assets liabiliti liabiliti t assets liabiliti liabiliti
assets assets es assets assets es
es es es es
Zhong 20971 20974 10239 10239 20963 20992 10240 10259
316002851019033
rong 1213. 2813. 1677. 1677. 7980. 3087. 0696. 1026..006.810.21
Litai 30 30 87 87 81 62 16 37
Fangd
a
88656145741032618891901463790772721476092033484981369649867
Zhiyua
9276.1515.310792852.892.97745.5686.7926.3612.2075.876.28951.
n
32311.637526709788734155
Techn
ology
In RMB
245Annual Report 2024 of China Fangda Group Co. Ltd.
Amount occurred in the current period Occurred in previous period
Company Total of Business Total of Business
Turnover Net profit misc. operation Turnover Net profit misc. operation
incomes cash flows incomes cash flows
Zhongrong - -
110091.7219074.1819074.18-27370.15110091.7290964.60
Litai 122439.25 122439.25
Fangda -
6128205882433670.94596194.161768145584214471424880.71598313.
Zhiyuan 5772922.8
1.0184928.663.334227
Technology 2
Other notes: During this period the Company's subsidiary Fangda Construction Technology acquired all minority shareholder
equity of Fangda Zhiyuan Technology making Fangda Zhiyuan Technology a wholly-owned subsidiary of the Company.
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
During this period the Company's subsidiary Fangda Construction Technology acquired all minority shareholder equity of
Fangda Zhiyuan Technology making Fangda Zhiyuan Technology a wholly-owned subsidiary of the Company.
(2) Impact of transaction on minority shareholders' equity and owner's equity attributable to parent company
In RMB
Fangda Zhiyuan Technology
Purchase cost/disposal consideration - cash 26616725.71
Less: share of net assets of subsidiaries calculated according to
19515085.64
the proportion of equity acquired / disposed
Difference 7101640.07
Including: adjustment of capital reserve 7101640.07
3. Interests in joint ventures or associates
(1) Financial summary of insignificant joint ventures and associates
In RMB
Closing balance/amount occurred Opening balance/amount
in this period occurred in previous period
Joint venture:
Total shareholding
Associate:
Total book value of investment 56690973.97 54757017.40
Total shareholding
Net profit -70043.43 -212024.74
--Total of misc. incomes -70043.43 -212024.74
246Annual Report 2024 of China Fangda Group Co. Ltd.
XI. Government Subsidies
1. Governmental subsidy recognized as receivable at the end of the report period
□Applicable □ Inapplicable
Ending balance of receivables: RMB642493.02.Reasons for not receiving the estimated amount of government grants at the expected point in time
□ Applicable□ Inapplicable
2. Liabilities involving government subsidies
□Applicable □ Inapplicable
In RMB
Amount
Other misc.included in Other change
Accounting Opening Amount of gains Closing Assets/earnin
non- in the current
item balance new subsidy recorded in balance g-related
operating period
this period
revenue
Deferred 10669612.1 Assets-
8978678.722321892.00630958.59
earning 3 related
10669612.1 Assets-
Total 8978678.72 2321892.00 630958.59
3 related
3. Government subsidies accounted into current profit or loss.
□Applicable □ Inapplicable
In RMB
Accounting item Amount occurred in the current period Occurred in previous period
Other gains 14027285.85 12902308.18
Financial expenses 2616200.00 -131680.00
Total 16643485.85 12770628.18
XII. Risks of Financial Tools
1. Types of risks arising from financial instruments
The risks associated with the financial instruments of the Company arise from the various financial assets and liabilities
recognized by the Company in the course of its operations including credit risks liquidity risks and market risks.The management objectives and policies of various risks related to financial instruments are governed by the management
of the Company. The operating management is responsible for daily risk management through functional departments (for
example the Company's credit management department reviews the Company's credit sales on a case-by-case basis). The internal
audit department of the Company conducts daily supervision of the implementation of the Company's risk management policies
and procedures and reports relevant findings to the Company's audit committee in a timely manner.
247Annual Report 2024 of China Fangda Group Co. Ltd.
The overall goal of the Company's risk management is to formulate risk management policies that minimize the risks
associated with various financial instruments without excessively affecting the Company's competitiveness and resilience.A. Credit risk
Credit risk is caused by the failure of one party of a financial instrument in performing its obligations causing the risk of
financial loss for the other party. The credit risk of the Company mainly comes from monetary capital notes receivable accounts
receivable other receivables receivables financing contract assets etc. The credit risk of these financial assets comes from the
default of the counterparties and the maximum risk exposure is equal to the book amount of these instruments.The Company's money and funds are mainly deposited in the commercial banks and other financial institutions. The
Company believes that these commercial banks have higher reputation and asset status and have lower credit risk.For notes receivable accounts receivable other receivables receivables financing and contract assets the Company sets
relevant policies to control credit risk exposure. The Group set the credit line and term for debtors according to their financial
status external rating and possibility of getting third-party guarantee credit record and other factors. The Group regularly
monitors debtors' credit record. For those with poor credit record the Group will send written payment reminders shorten or
cancel credit term to lower the general credit risk.
(1) Significant increases in credit risk
The credit risk of the financial instrument has not increased significantly since the initial confirmation. In determining
whether the credit risk has increased significantly since the initial recognition the Company considers reasonable and evidenced
information including forward-looking information that can be obtained without unnecessary additional costs or effort. The
Company determines the relative risk of default risk of the financial instrument by comparing the risk of default of the financial
instrument on the balance sheet date with the risk of default on the initial recognition date to assess the credit risk of the financial
instrument from initial recognition.When one or more of the following quantitative and qualitative criteria are triggered the Company believes that the credit
risk of financial instruments has increased significantly: the quantitative criteria are mainly the probability of default in the
remaining life of the reporting date increased by more than a certain proportion compared with the initial recognition; the
qualitative criteria are the major adverse changes in the operation or financial situation of the major debtors the early warning of
customer list etc.
248Annual Report 2024 of China Fangda Group Co. Ltd.
(2) Definition of assets where credit impairment has occurred
In order to determine whether or not credit impairment occurs the standard adopted by our company is consistent with the
credit risk management target for related financial instruments and quantitative and qualitative indicators are considered.Major financial difficulties have occurred to the issuer or the debtor; Breach of contract by the debtor such as payment of
interest or default or overdue of principal; (B) The concession that the debtor would not make under any other circumstances for
economic or contractual considerations relating to the financial difficulties of the debtor; The debtor is likely to be bankrupt or
undertake other financial restructuring; The financial difficulties of the issuer or debtor lead to the disappearance of the active
market for the financial asset; To purchase or generate a financial asset at a substantial discount which reflects the fact that a
credit loss has occurred.Credit impairment in financial assets may be caused by a combination of multiple events not necessarily by events that can
be identified separately.
(3) Expected credit loss measurement
Depending on whether there is a significant increase in credit risk and whether a credit impairment has occurred the
Company prepares different assets for a 12-month or full expected credit loss. The key parameters of expected credit loss
measurement include default probability default loss rate and default risk exposure. Taking into account the quantitative analysis
and forward-looking information of historical statistics (such as counterparty ratings guaranty methods collateral categories
repayment methods etc.) the Company establishes the default probability default loss rate and default risk exposure model.Definition:
The probability of default refers to the possibility that the debtor will not be able to fulfill its obligation to pay in the next 12
months or throughout the remaining period.Breach Loss Rate means the extent of loss expected by the Company for breach risk exposure. Depending on the type of
counterparty the manner and priority of recourse and the different collateral the default loss rate is also different. The default loss
rate is the percentage of the risk exposure loss at the time of the default calculated on the basis of the next 12 months or the entire
lifetime.
249Annual Report 2024 of China Fangda Group Co. Ltd.
Exposure to default is the amount payable to the Company at the time of default in the next 12 months or throughout the
remaining life. Prospective information credit risks significantly increased and expected credit losses were calculated. Through the
analysis of historical data the Company has identified the key economic indexes that affect the credit risk of each business type
and the expected credit loss.The largest credit risk facing the Group is the book value of each financial asset on the balance sheet. The Group makes no
guarantee that may cause the Group credit risks.Among the Group’s receivables accounts receivable from top 5 customers account for 20.50% of the total accounts
receivable (beginning of the period: 23.89%); among other receivables other receivables from top 5 customers account for 71.82%
of the total other receivables (beginning of the period: 72.01%).B. Liquidity risk
Liquidity risk is the risk of capital shortage when the Group needs to pay cash or settled with other financial assets. The
Company is responsible for the cash management of its subsidiaries including short-term investments in cash surpluses and loans
to meet projected cash requirements. The Company's policy is to regularly monitor short and long-term liquidity requirements and
compliance with borrowing agreements to ensure adequate cash reserves and readily available securities. The Company will also
consider negotiating with suppliers to adopt supplier financing arrangements to extend the payment period in order to alleviate the
Company's cash flow pressure.As of December 31 2024 the maturity of the Company's financial liabilities is as follows:
In RMB10000
December 31 2024
Item
Less than 1 year Within 1-3 years Over 3 years Total
Short-term loans 166369.64 166369.64
Derivative financial liabilities 152.06 152.06
Notes payable 68118.81 68118.81
Account payable 213195.52 297.46 1166.51 214659.49
Other payables 8013.60 1109.24 2968.96 12091.80
Non-current liabilities due in 1 year 12846.95 12846.95
Other current liabilities 5083.56 5083.56
Long-term loans 96700.00 17000.00 113700.00
250Annual Report 2024 of China Fangda Group Co. Ltd.
Lease liabilities 923.06 142.20 1065.26
Total
473780.1499029.7621277.67594087.57
(Continued)
In RMB10000
December 31 2023
Item
Less than 1 year Within 1-3 years Over 3 years Total
Short-term loans 220805.50 220805.50
Notes payable 86888.69 86888.69
Account payable 195524.32 1415.80 289.26 197229.38
Other payables 5168.51 1010.36 5579.31 11758.18
Non-current liabilities due in 1 year 6413.51 6413.51
Other current liabilities 5352.47 5352.47
Long-term loans 30000.00 36000.00 66000.00
Lease liabilities 578.60 88.99 667.59
Long-term payable 4840.00 4840.00
Total
520153.0037844.7641957.56599955.32
C. Market risk
(1) Credit risks
The exchange rate risk of the Company mainly comes from the assets and liabilities of the Company and its subsidiaries in
foreign currency not denominated in its functional currency. Except for the 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 December 31 2024 the Company's year-end foreign currency financial assets and foreign currency financial
liabilities are presented in Note 63 of this section under foreign currency monetary items.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.
251Annual Report 2024 of China Fangda Group Co. Ltd.
(2) Exchange rate risk
The Group's interest rate risk mainly arises from long-term interest-bearing debts such as long-term bank loans. Financial
liabilities with floating interest rate cause cash flow interest rate risk for the Group. Financial liabilities with fixed interest rate
cause fair value interest rate risk for the Group. The Group decides the proportion between fixed interest rate and floating interest
rate according to the market environment and regularly reviews and monitors the combination of fixed and floating interest rate
instruments.The Finance Department at the Company's head office monitors the level of the Group's interest rates on an ongoing basis.The rising interest rate will increase the cost of the new interest-bearing debt and the interest expenditure on interest-bearing debt
which has not yet been paid by the Company at the floating rate and will have a significant adverse effect on the Company's
financial performance. Management will make adjustments in time according to the latest market conditions.As of December 31 2024 when other risk variables remain unchanged if the borrowing interest rate calculated by floating
interest rate increases or decreases by 50 basis points the net profit of the Company in that year will decrease or increase by
RMB4.8 million (December 31 2023: RMB3.6 million).
2. Hedging
(1) The Company conducts hedging business for risk management.
□Applicable □ Inapplicable
Economic
Effective The impact of the
Corresponding risk Qualitative and relationships
achievement of corresponding
management quantitative between hedged
Item expected risk hedging activities
strategies and information about items and related
management on the risk
objectives the hedged risk hedging
objectives exposure
instruments
Utilizing the The Company uses The underlying The Company has
hedging function aluminum futures variables are formulated
of futures tools to hedge standard aluminum relevant internal
the Company aluminum-related prices and the management
Buy or sell
carries out raw materials in its values of hedged systems for its
corresponding
aluminum futures prospective items and hedging aluminum futures
aluminum futures
Aluminum futures hedging business procurement instruments hedging and
contracts to hedge
hedging to reasonably business. The change in opposite forward foreign
the risk exposure
avoid the risks Company adopts directions due to exchange trading
existing in the spot
brought about by the strategy of facing the same business and
business side.fluctuations in the dynamic hedging hedged risks and continuously
prices of relevant of commodity there is a evaluates the
raw materials to its price risk exposure relationship of effectiveness of
operations to by adjusting its mutual hedging of hedging to ensure
252Annual Report 2024 of China Fangda Group Co. Ltd.
enhance the futures contract risks. that the hedging
Company's overall position according relationship is
ability to withstand to a certain effective in the
risks and to percentage of its designated
strengthen the prospective accounting period
robustness of its procurement and that the risks
operating exposure and the of fluctuations in
activities. exposure* hedging raw material
ratio is basically purchasing prices
the same as the and exchange rate
quantity of the fluctuations of
commodity foreign-currency
represented by the receivables are
futures position. controlled within a
The Company uses reasonable range
Utilizing the forward foreign so as to enhance
hedging and exchange contracts the Company's
protection function to hedge expected risk-resistance
of forward foreign receivables. The ability and
exchange Company employs increase the
contracts the a strategy of The underlying robustness of its
Company carries dynamic hedging variables are all operating
out the business of of exchange rate foreign currency activities.hedging foreign exposures exchange rates.Buy or sell
currency whereby foreign The exchange rates
corresponding
receivables in exchange contract of the hedged item
forward foreign
Forward foreign order to reasonably positions are and the hedging
exchange contracts
exchange contract avoid the risks adjusted according instrument change
to hedge the risk
value preservation brought by to a certain in opposite
exposure of
exchange rate percentage of the directions due to
foreign currency
fluctuations to its expected foreign exposure to the
receivables.operations currency same hedged risk
enhance the receivable and there is a
Company's overall exposure and the relationship of risk
ability to withstand ratio of the hedging.risks and exposure* hedge is
strengthen the essentially the
soundness of its same as the
operating receivable
activities. represented by the
contract position.
(2) The Company conducts eligible hedging operations and applies hedge accounting.
In RMB
Cumulative fair
value hedge
Carrying value
adjustments to
associated with Hedge effectiveness and Impact of hedge accounting related
hedged items
Item hedged items and sources of hedge to the Company's financial
included in the
hedging ineffectiveness statements
carrying value of
instruments
the hedged item
recognized
Types of hedge risk
Relevance of hedged items Derivative financial liabilities:
Price risk 1520625.00 Inapplicable
to hedging instruments RMB1520625.00; other
253Annual Report 2024 of China Fangda Group Co. Ltd.
comprehensive income:
RMB1292531.25; deferred tax
assets: RMB228093.75.Exchange rate Relevance of hedged items Investment income: RMB-
Inapplicable
risk to hedging instruments 1675192.30
Type
Derivative financial liabilities:
RMB1520625.00; other
Cash flow Relevance of hedged items comprehensive income:
1520625.00 Inapplicable
hedging to hedging instruments RMB1292531.25; deferred tax
assets: RMB228093.75; investment
income: RMB-1675192.30.
(3) The Company conducts hedging business for risk management and expects to achieve its risk management objectives
but does not apply hedge accounting.□Applicable□ Inapplicable
3. Financial Assets
(1) Classification of transfer methods
□Applicable □ Inapplicable
In RMB
Nature of financial Amount of financial
Way of transfer Derecognition Basis for judging derecognition
assets transferred assets transferred
Promissory notes used for
discounting or endorsement are
accepted by banks or enterprises
Outstanding promissory with low credit ratings discounting
Endorsement or
notes in notes 34500685.65 Not derecognized or endorsement does not affect
discount
receivable recourse and the credit risk and
deferred payment risk associated
with the notes remain not
transferred
Bankers' acceptances used for
discounting or endorsement are
Outstanding bankers'
Endorsement or accepted by banks with high credit
acceptances in 65199427.07 Derecognition
discount ratings and the credit risk and
receivables financing
deferred payment risk associated
with the instruments are low
Outstanding receivables
Factoring 87143569.89 Derecognition Non-recourse factoring
in receivables financing
Total 186843682.61
(2) Financial assets derecognized due to transfers
□Applicable □ Inapplicable
In RMB
Transfer method of Amount of financial assets Gain or loss related to the de-
Item
financial assets derecognized recognition
254Annual Report 2024 of China Fangda Group Co. Ltd.
Outstanding bankers'
acceptances in receivables Endorsement or discount 65199427.07 -154143.85
financing
Account receivable Factoring 87143569.89 -2538217.26
Total 152342996.96 -2692361.11
(3) Transfer of financial assets with continuing involvement in assets
□Applicable□ Inapplicable
XIII. Fair Value
1. Closing fair value of assets and liabilities measured at fair value
In RMB
Closing fair value
Item
First level fair value Second level fair value Third level fair value Total
1. Continuous fair
--------
value measurement
(1) Investment real
5835036098.205835036098.20
estate
1. Leased building 5835036098.20 5835036098.20
(2) Receivable
4568000.104568000.10
financing
(iii) Other non-current
6519740.176519740.17
financial assets
Total assets measured
at fair value 4568000.10 5841555838.37 5846123838.47
continuously
(iv) Financial liabilities
1520625.001520625.00
held for trading
1. Derivative financial
1520625.001520625.00
liabilities
Total assets measured
at fair value 1520625.00 1520625.00
continuously
2. Discontinuous fair
--------
value measurement
2. Recognition basis of market value of continuous and discontinuous items measured at first level fair
value
For the financial instruments traded in the active market the Company determines their fair value based on their quoted
prices in the active market; for the financial instruments not traded in the active market the Company adopts valuation technology
to determine their fair value. The valuation models are mainly cash flow discount model and market comparable company model.The input value of valuation technology mainly includes risk-free interest rate benchmark interest rate exchange rate credit point
difference liquidity premium lack of liquidity discount etc.
255Annual Report 2024 of China Fangda Group Co. Ltd.
3. Valuation technique and qualitative and quantitative information for key parameters of continuous
and discontinuous second level fair value items
For derivative financial assets and derivative financial liabilities with fair value of forward exchange contracts the fair
value is determined based on the market value of expected earnings at the balance sheet date.Receivables financed at fair value through other comprehensive income are notes receivable for which the fair value is
determined based on the book value due to the short remaining maturity.
4. Valuation technique and qualitative and quantitative information for key parameters of continuous
and discontinuous third level fair value items
Investment properties measured at fair value are appraised using the comparative and income approaches. Comparison
method: It selects a certain number of comparable examples compares them with the valuation object and processes the
comparable instance transaction prices according to the difference to obtain the value or price of the valuation object. The income
approach is a method of predicting the future earnings of the object of valuation and using the rate of compensation or
capitalization rate income multiplier to convert the future earnings into value to get the value or price of the object of valuation.
5. Switch between different levels switch reason and switching time policy
The Company takes the occurrence date of the events leading to the transition between levels as the time point to confirm
the transition between levels. In the period there is no switch in the financial assets measured at fair value between the first and
second level or transfer in or out of the third level.
6. Fair value of financial assets and liabilities not measured at fair value
Financial assets and liabilities measured at amortized cost include: monetary capital bills receivable accounts receivable
other receivables short-term borrowings notes payable accounts payables other payables and long-term payables.XIV. Related Parties and Transactions
1. Parent of the Company
Share of the parent Voting power of
Registered Registered
Parent Business co. in the the parent
address capital
Company company
Shenzhen Banglin Technologies Industrial RMB30
Shenzhen 11.11% 11.11%
Development Co. Ltd. investment million
Hong Industrial
Shengjiu Investment Ltd. HKD1000000 10.25% 10.25%
Kong investment
256Annual Report 2024 of China Fangda Group Co. Ltd.
Particulars about the parent of the Company
* All of the investors of Shenzhen Banglin Technology Development Co. Ltd. the holding shareholder of the Company
are natural persons. Among them Chairman Xiong Jianming is holding 85％ shares and Mr. Xiong Xi is holding 15% of the
shares.* Among the top 10 shareholders Shenzhen Banglin Technology Development Co. Ltd. and Shengjiu Investment Co.Ltd. are acting in concert.The final controller of the Company is Xiong Jianming.
2. Subsidiaries of the Company
For details of subsidiaries of the enterprise please refer to Note X of this chapter rights and interests in other entities.
3. Joint ventures and associates
The enterprise has no significant joint ventures or associates this year.Information about other joint ventures or associates with related transactions in this period or with balance generated by
related transactions in previous period:
Joint venture or associate Relationship with the Company
Ganshang Joint Investment Affiliates of the Company
4. Other associates
Other related parties Relationship with the Company
Jiangxi Business Innovative Property Joint Stock Co. Ltd. Affiliates of the Company
Shenyang Fangda Subsidiary in liquidation
Shenzhen Yikang Real Estate Co. Ltd. Controlled subsidiaries
Shenzhen Qijian Technology Co. Ltd. (Qijian Technology) Common actual controller
Director manager and secretary of the Board Key management
5. Related transactions
(1) Related transactions for purchase and sale of goods provision and acceptance of services
Sales of goods and services
In RMB
Affiliated party Related transaction Amount occurred in the Occurred in previous period
257Annual Report 2024 of China Fangda Group Co. Ltd.
current period
Property service and sales of
Qijian Technology 17392.00 181132.08
goods
(2) Related leasing
The Company is the leasor:
In RMB
Rental recognized in the Rental recognized in the
Name of the leasee Category of asset for lease
period period
Qijian Technology Houses & buildings 86857.15 868571.40
(3) Related guarantees
The Company is the guarantor:
In RMB10000
Amount Completed or
Beneficiary party Start date Due date
guaranteed not
Fangda Jianke 24000.00 May 5 2023 Three years after the expirationdate of debt performance Yes
Fangda Jianke 15000.00 May 25 2022 Three years after the expirationdate of debt performance Yes
Fangda Jianke 4000.00 May 15 2023 Three years after the expirationdate of debt performance Yes
Fangda Jianke 30000.00 September 25 2023 Three years after the expirationdate of debt performance Yes
Fangda Jianke 48000.00 December 15 2023 Three years after the expirationdate of debt performance Yes
Fangda Jianke 20000.00 October 9 2023 Three years after the expirationdate of debt performance Yes
Fangda Jianke 50000.00 September 28 2023 Three years after the expirationdate of debt performance Yes
Fangda Jianke 60000.00 January 21 2023 Three years after the expirationdate of debt performance Yes
Fangda Jianke 20000.00 March 31 2023 Three years after the expirationdate of debt performance Yes
Fangda Jianke 20000.00 November 2 2023 Three years after the expirationdate of debt performance Yes
Fangda Zhiyuan 10000.00 May 25 2022 Three years after the expirationdate of debt performance Yes
Fangda Zhiyuan 20000.00 October 7 2023 Three years after the expirationdate of debt performance Yes
Fangda Zhiyuan 18000.00 December 15 2023 Three years after the expirationdate of debt performance Yes
Fangda Zhiyuan 15000.00 September 25 2023 Three years after the expirationdate of debt performance Yes
Fangda Zhiyuan 36000.00 June 20 2023 Three years after the expirationdate of debt performance Yes
Fangda Zhiyuan 15000.00 May 5 2023 Three years after the expirationdate of debt performance Yes
Fangda New Material 10000.00 April 18 2023 Three years after the expirationdate of debt performance Yes
Fangda Zhijian 7000.00 May 15 2023 Three years after the expirationdate of debt performance Yes
Fangda Yunzhu 1000.00 March 30 2023 Three years after the expirationdate of debt performance Yes
Fangda Yunzhu 600.00 May 11 2023 Three years after the expiration Yes
258Annual Report 2024 of China Fangda Group Co. Ltd.
date of debt performance
Fangda Jianke 39000.00 December 9 2022 Three years after the expirationdate of debt performance Yes
Total amount of guarantee
462600.00
fulfilled
Fangda Jianke 93000.00 December 28 2023 Three years after the expirationdate of debt performance No
Fangda Jianke 39000.00 January 24 2024 Three years after the expirationdate of debt performance No
Fangda Jianke 15000.00 May 11 2024 Three years after the expirationdate of debt performance No
Fangda Jianke 48000.00 December 15 2024 Three years after the expirationdate of debt performance No
Fangda Jianke 11400.00 August 16 2023 Three years after the expirationdate of debt performance No
Fangda Jianke 50000.00 September 4 2024 Three years after the expirationdate of debt performance No
Fangda Jianke 30000.00 November 11 2024 Three years after the expirationdate of debt performance No
Fangda Jianke 30000.00 October 20 2023 Three years after the expirationdate of debt performance No
Fangda Jianke 4000.00 June 20 2024 Three years after the expirationdate of debt performance No
Fangda Jianke 20000.00 November 4 2024 Three years after the expirationdate of debt performance No
Fangda Jianke 60000.00 June 27 2024 Three years after the expirationdate of debt performance No
Fangda Jianke 24000.00 May 27 2024 Three years after the expirationdate of debt performance No
Fangda Jianke 30000.00 December 21 2023 Three years after the expirationdate of debt performance No
Fangda Jianke 20000.00 December 27 2024 Three years after the expirationdate of debt performance No
Fangda Jianke 60000.00 December 19 2024 Three years after the expirationdate of debt performance No
Fangda Zhiyuan 10000.00 September 25 2023 Three years after the expirationdate of debt performance No
Fangda Zhijian 7000.00 May 17 2024 Three years after the expirationdate of debt performance No
Fangda Zhiyuan 10000.00 December 21 2023 Three years after the expirationdate of debt performance No
Fangda Zhiyuan 18000.00 December 15 2024 Three years after the expirationdate of debt performance No
Fangda Zhiyuan 36000.00 June 27 2024 Three years after the expirationdate of debt performance No
Fangda Zhiyuan 15000.00 May 30 2024 Three years after the expirationdate of debt performance No
Fangda Zhiyuan 20000.00 November 11 2024 Three years after the expirationdate of debt performance No
Fangda Zhiyuan 15000.00 September 4 2024 Three years after the expirationdate of debt performance No
Fangda Zhiyuan 10000.00 May 11 2024 Three years after the expirationdate of debt performance No
Fangda Zhiyuan 15550.00 November 21 2023 Three years after the expirationdate of debt performance No
Fangda Yunzhu 1000.00 May 7 2024 Three years after the expirationdate of debt performance No
Fangda Yunzhu 1000.00 June 28 2024 Three years after the expirationdate of debt performance No
Fangda Yunzhu 600.00 June 3 2024 Three years after the expirationdate of debt performance No
Fangda New Material 10000.00 July 8 2024 Three years after the expirationdate of debt performance No
Fangda New Material 8500.00 November 2 2023 Three years after the expirationdate of debt performance No
259Annual Report 2024 of China Fangda Group Co. Ltd.
Fangda Dongguan New
5000.00 August 26 2024 Three years after the expiration
Material date of debt performance
No
Fangda Property 135000.00 February 25 2020 Three years after the expirationdate of debt performance No
Fangda Intelligent
30000.00 February 22 2024 Three years after the expiration
Manufacturing date of debt performance
No
Fangda Zhiyuan 31896.02 February 17 2024 Date of completion of projectcontract No
Fangda Zhiyuan 24885.16 February 17 2024 Date of completion of projectcontract No
Total amount of guarantee
938831.18
being performed
Description of related party guarantee: The above-mentioned guarantees are all associated guarantees within interested
entities of the Company.
6. Receivable and payables due with related parties
(1) Receivable interest
In RMB
Closing balance Opening balance
Project name Affiliated party Remaining book Remaining book
Bad debt provision Bad debt provision
value value
Account
Qijian Technology 85792.00 857.92 4763.36 47.63
receivable
Ganshang Joint
Other receivables 3791089.25 56487.23 3791089.25 56487.23
Investment
Shenzhen Yikang
Other receivables Real Estate Co. 76062675.83 1133333.87 76062675.83 1133333.87
Ltd.
(2) Receivable interest
In RMB
Opening balance of book
Project name Affiliated party Closing balance of book value
value
Shenzhen Yikang Real Estate
Other payables 26159711.72 26102009.60
Co. Ltd.Other payables Qijian Technology 19760.00 400.00
Other payables Ganshang Joint Investment 3355.36
XV. Commitment and Contingent Events
1. Major commitments
(1) 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
260Annual Report 2024 of China Fangda Group Co. Ltd.
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
2024 Fangda Real Estate has paid a deposit of RMB20 million and a transitional compensation of RMB5 million.
(2) In July 2018 the Company's subsidiary Fangda Real Estate Co. Ltd. (Party A) signed a contract with Shenzhen Yikang
Real Estate Co. Ltd. (Party B1) and Shenzhen Qianhai Zhongzheng Dingfeng No. 6 Investment Enterprise (Limited Partnership)
(Party B2) "Shenzhen Henggang Dakang Village Project Cooperation Agreement". Party B agrees to transfer the entire equity of
the project company it holds and the entire development interest of the project to Party A. Party A shall pay Party B a total of
RMB600 million for the cooperation price. As of December 31 2024 Fangda Property has paid Party B and the project company
RMB50 million of security deposit RMB20 million of service fee RMB61937200 of equity transfer and RMB79362900 of
other related payments.The Company has no other commitments that should be disclosed by December 31 2024.
2. Contingencies
Significant contingencies on the balance sheet date:
(1) Contingent liabilities formed by material lawsuit or arbitration and their influences on the financial position
* On June 19 2019 Langfang Aomei Jiyuan Real Estate Development Co. Ltd. filed a lawsuit against Fangda Jianke
Company at the People's Court of Langfang Development Zone requesting the termination of the construction contract
compensation for delay and quality breach penalties of RMB13721315.00 double return of the project payment of
RMB6000000 and later added a claim for repair project costs of RMB22935269.98; Fangda Jianke filed a counterclaim on
September 11 2019 requesting payment for project costs and others totaling RMB13939863.27. As of the disclosure date of this
report the case is still under trial.* In March 2022 Xiangheng Real Estate (Jinan) Co. Ltd. filed an arbitration with the Jinan Arbitration Commission
requesting Fangda Jianke to bear the deduction maintenance rectification and rework costs of RMB8956563.81 and lawyer's
fees of RMB350000.00 caused by the quality problems of the supply and installation of aluminum alloy doors and windows
louvers and curtain walls of Jinan Kerry comprehensive development project (phase I and II); In April 2022 Fangda Construction
Technology Co. Ltd. filed an anti arbitration application requiring Xiangheng Real Estate (Jinan) Co. Ltd. to pay a total of
RMB18062462.28 for the project funds and project expenses. As of the date of this report the two cases are under joint trial.
261Annual Report 2024 of China Fangda Group Co. Ltd.
* In August 2024 Fangda Jianke filed a lawsuit with the People's Court of Longgang District Shenzhen requesting South
China International Industrial Raw Material City (Shenzhen) Co. Ltd. and South China City Holdings Co. Ltd. to pay Fangda
Jianke the principal and interest of the project payment for the South China International Electronic Industrial Raw Materials
Logistics Zone (Phase I) in the amount of RMB46004481.42 and asserted the priority right of compensation for construction
project payment. As of the disclosure date of this report the court has filed and accepted the case and is awaiting a hearing.* In October 2024 Fangda Jianke filed a lawsuit with the People's Court of Qingyang District Chengdu requesting
Chengdu Zhongda Investment Co. Ltd. to pay Fangda Jianke the principal and interest of the project payment for the Fengde
Chengda Center Project in the amount of RMB10134822.27 and asserted the priority right of compensation for construction
project payment. Chengdu Zhongda Investment Co. Ltd. has filed a counterclaim application demanding that Fangda Jianke pay a
total of RMB9089237.21 in liquidated damages for project delay fines for delayed parallel acceptance and compensation for
delayed entry losses. As of the disclosure date of this report the case is still under trial.* In October 2024 Fangda Jianke filed a lawsuit with the Nanshan District People's Court of Shenzhen City requesting
Shenzhen Energy Environmental Protection Co. Ltd. to pay Fangda Jianke the principal and interest of the project payment for the
curtain wall engineering of the Shenzhen Mawan Urban Energy Ecological Park Project amounting to RMB13346184.19 and
asserted the priority right of compensation for construction project payments. As of the disclosure date of this report the court has
filed and accepted the case and is awaiting a hearing.* In December 2024 Fangda Jianke filed a lawsuit with the Futian District People's Court of Shenzhen requesting
Shenzhen Suhao Investment Co. Ltd. and Zhang Shengjie to pay Fangda Jianke the principal and interest of the project payment
for the Ziyuanyuan Building curtain wall project amounting to RMB18600899.46 and asserted the priority right of
compensation for construction project payments. As of the disclosure date of this report the court has filed and accepted the case
and is awaiting a hearing.
(2) Pending major lawsuits
* In September 2022 Fangda Real Estate Co. Ltd. filed a lawsuit to the People's Court of Nanshan District Shenzhen
requiring Shenzhen Hongtao Group Co. Ltd. to pay the total principal and interest of Fangda Real Estate Co. Ltd. to Fangda Real
Estate Co. Ltd. for the purchase of building 3 # in Fangda City amounting to RMB56527427.01 and Hongtao Company's
counterclaim party Dada Real Estate Co. Ltd. requested to cancel the signed Supplementary Agreement on Real Estate Sales and
pay the liquidated damages of RMB44046859.04 for overdue certificate processing. The court has issued a first instance
262Annual Report 2024 of China Fangda Group Co. Ltd.
judgment ruling that Hongtao Company shall pay Fangda Real Estate Company the purchase price of RMB40127678.19 and
overdue payment interest (temporarily calculated as RMB8418135.54 until June 30 2022). The subsequent interest shall be
calculated based on RMB40127678.19 and continue to be calculated until the actual payment date according to the loan market
quotation interest rate standard published by the National Interbank Funding Center. Reject all counterclaim requests from
Hongtao Company. Both parties later filed an appeal. As of the disclosure date of this report the second instance judgment has
been issued and the original judgment has been upheld. Currently the case has entered the execution stage.* In April 2023 Fangda Jianke filed a lawsuit with the Guangzhou Intermediate People's Court demanding the
termination of the construction contract signed with Guangzhou Kaidar Investment Co. Ltd. for the Kaidar Hub International
Plaza project and requiring Guangzhou Kaidar Investment Co. Ltd. to pay the principal amount of the project payment of
RMB113529244.60 and interest to Fangda Jianke and claiming the priority right to receive compensation for the construction
project price. As of the date of this report the court has issued a first instance judgment stating that Kedar is required to pay the
principal amount of the project payment of RMB113，529，244.60 and corresponding interest to Fangda Jianke and has the
priority right to be compensated for the discount or auction price of the project curtain wall. Currently the case has entered the
execution stage.* In September 2022 Fangda Jianke Co. Ltd. filed a lawsuit to the People's Court of Longhua District requiring
Longguang Engineering Construction Co. Ltd. to pay the total principal and interest of the project funds of Longguang Jiuzuan
Project Plot 05 and Plot 09 to Fangda Construction Technology Co. Ltd. totaling RMB33197543.00. As of the disclosure date of
this report the case concerning the Jiuzuan Plot 05 project has resulted in both first-instance and second-instance judgments: The
first-instance judgment ordered Longguang Company to pay Fangda Jianke the project payment of RMB7709679.55 the quality
assurance deposit of RMB6033911.38 and the corresponding interest while granting the priority right of compensation from the
proceeds of the sale or auction of the curtain wall production and installation project. The second-instance judgment upheld the
first-instance decision regarding the project payment quality assurance deposit corresponding interest and the priority right of
compensation and additionally ruled that the owner of the Longguang Jiuzuan Project Plot 05 Shenzhen Longguang Junjing Real
Estate Development Co. Ltd. bears joint and several liability for the payment to Fangda Jianke. Fangda Jianke has applied for
compulsory enforcement. As of the disclosure date of this report the case concerning the Jiuzuan Plot 09 project has resulted in
both first-instance and second-instance judgments: The first-instance judgment ordered Longguang Company to pay Fangda
Jianke the project payment of RMB9166924.08 the quality assurance deposit of RMB4875762.96 and the corresponding
interest while granting the priority right of compensation from the proceeds of the sale or auction of the curtain wall production
263Annual Report 2024 of China Fangda Group Co. Ltd.
and installation project. The second-instance judgment upheld the first-instance decision regarding the project payment quality
assurance deposit corresponding interest and the priority right of compensation and additionally ruled that the owner of the
Longguang Jiuzuan Project Plot 09 Shenzhen Longguang Junjing Real Estate Development Co. Ltd. bears joint and several
liability for the payment to Fangda Jianke. Fangda Jianke has applied for compulsory enforcement.* In November 2023 Fangda Jianke filed a lawsuit with the People's Court of Honggutan District Nanchang requesting
Jiangxi Huilian Real Estate Co. Ltd. and Jiangxi Boneng Industrial Group Co. Ltd. to pay the project payment and interest for the
Nanchang Shanglian Center Project totaling RMB45309399.07 and asserted the priority right of compensation for the project
payment. The first-instance judgment ruled that Jiangxi Huilian Real Estate Co. Ltd. should pay Fangda Jianke
RMB38800206.53 and interest and that Jiangxi Boneng Industrial Group Co. Ltd. should bear joint and several liability for
RMB37563144.42 of the project payment and interest. The request for accelerated maturity of the quality assurance deposit and
the priority right of compensation for the project payment was not supported leading Fangda Jianke to file an appeal. The second-
instance judgment supported the priority right of compensation. As of the disclosure date of this report Fangda Jianke has applied
to the court for compulsory enforcement.
(3) Contingent liabilities formed by providing of guarantee to other companies' debts and their influences on financial
situation
By December 31 2024 the Company has provided loan guarantees for the following entities:
Amount
Name of guaranteed
Guarantee Term Remarks
entity
(RMB10000)
Guarantee and mortgage
Fangda Property 66000.00 2020.03.13-2030.03.12
guarantee
Fangda Intelligent
Guarantee 30000.00 2024.03.15-2030.03.14
Manufacturing
Fangda Jianke Guarantee 10500.00 2024.06.05-2025.03.05
Fangda Jianke Guarantee 4000.00 2024.03.14-2025.03.14
Fangda Jianke Guarantee 5000.00 2024.05.17-2025.05.16
Fangda Jianke Guarantee 5000.00 2024.11.29-2025.05.29
Fangda Jianke Guarantee 4000.00 2024.06.20-2025.06.15
264Annual Report 2024 of China Fangda Group Co. Ltd.
Fangda Jianke Guarantee 29900.00 2024.06.26-2026.06.25
Fangda Yunzhu Guarantee 1000.00 2024.06.28-2025.06.23
Fangda Zhiyuan Guarantee 2000.00 2024.06.21-2025.06.21
Fangda Zhiyuan Guarantee 4000.00 2024.06.24-2025.06.24
Fangda Zhiyuan Guarantee 2400.00 2024.07.12-2025.07.11
Fangda Jianke Guarantee 3000.00 2024.08.13-2025.07.13
Fangda Jianke Guarantee 5000.00 2024.08.14-2025.08.13
Total 171800.00
Note 1: Contingent liabilities caused by guarantees provided for other entities are all related guarantees between interested
entities in the Company.Notes 2: The Company’s property business provides periodic mortgage guarantee for property purchasers. The term of the
periodic guarantee lasts from the effectiveness of guarantee contracts to the completion of mortgage registration and transfer of
housing ownership certificates to banks. As of December 31 2024 the Company has undertaken the above phased guarantee
amount of RMB3.94 million.
(4) Other contingent liabilities and their influences
As of December 31 2024 the Company has no other significant contingencies that need to be disclosed.
3. Others
Status of non-revocation of company as at December 31 2024:
Guarantee balance
Currency Deposit (RMB) Credit line used (RMB)
(original currency)
CNY 963954497.55 845397.96 963109099.59
INR 38164259.78 46099.32 3161110.58
HKD 22259665.45 15000000.00 5613340.59
USD 3562595.83 1475777.51 24133586.35
SGD 15681338.00 83700709.71
AUD 2232300.00 234364.00 9826612.10
265Annual Report 2024 of China Fangda Group Co. Ltd.
EUR 3771764.01 28385164.41
Total 17601638.79 1117929623.33
XVI. Post-balance-sheet Events
1. Profit distribution
Proposed dividend per 10 shares (RMB) 0.50
Dividend per 10 shares declared and approved for distribution
0.50
(RMB)
On April 18 2025 the Company held the 13th meeting of the
10th Board of Directors and passed the Proposal on the 2024
Annual Profit Distribution. According to the 13th meeting of
the 10th Board of Directors based on the total share capital of
Profit distribution plan 1073874227 shares as of December 31 2024 the Company
plans to distribute a cash dividend of RMB0.50 (inclusive of
tax) for every 10 shares to all shareholders totaling
RMB53693711.35. No dividend share or capitalization share
was issued in the year.
2. Notes to other issues in post balance sheet period
The Company has no other issues in post balance sheet period that need to be disclosed on April 18 2025 (report date
approved by the Board of Directors).XVII. Other material events
1. Segment information
(1) Recognition basis and accounting policy for segment report
The Group divides its businesses into five reporting segments. The reporting segments are determined based on financial
information required by routine internal management. The Group's management regularly review the operating results of the
reporting segments to determine resource distribution and evaluate their performance.The reporting segments are:
* Curtain wall division: production and sales of curtain wall materials design production and installation of building
curtain walls curtain wall testing and maintenance services;
* Rail transit branch: assembly and processing of subway screen doors screen door detection and maintenance services;
266Annual Report 2024 of China Fangda Group Co. Ltd.
(3) Real estate segment: development and operating of real estate on land of which land use right is legally obtained by the
Company; property management;
(4) New energy segment: photovoltaic power generation photovoltaic power plant sales photovoltaic equipment R & D
installation and sales and photovoltaic power plant engineering design and installation
(5) Others
The segment report information is disclosed based on the accounting policies and measurement standards used by the
segments when reporting to the management. The policies and standards should be consistent with those used in preparing the
financial statement.
(2) Financial information
In RMB
Offset
Item Curtain wall Rail transport Real estate New energy Others between Total
segments
356170264612820581.230469222.19026115.622532419.322326788.8442422419
Turnover
8.4901066237.71
Including:
external 355599691 612820581. 222272168. 18259004.0 14875528.8 442422419
transaction 5.26 01 63 1 0 7.71
income
Inter-
segment 22326788.8
5705733.238197053.43767111.657656890.52
transaction 3
income
Including:
major 350744204 612264588. 229870892. 19026115.6 22532419.3 18016623.5 437311943
business 1.54 95 86 6 2 8 4.75
turnover
Operating 309153982 438654376. 61531185.1 11696532.2 358814229
8032304.6581137.33
cost 4.79 83 3 5 6.48
Including:
304795136438554056.61531185.110755162.7354539488
major 8032304.65 81137.33
7.0889378.31
business cost
--
Operation 429824307. 78706103.7 106801017. 676207206.
611754.4332044875.492308898.0
cost 98 5 62 43
05
Operating 40338515.7 95460100.4 62137019.3 10382056.5 54496157.3 102939154. 159874694.profit/(loss) 2 3 1 8 9 63 80
753256859103231079617507718135707679.385407261517434963135553872
Total assets
0.721.635.56696.268.6525.21
Total 501920977 637907745. 334140853 156486877 318651912 738127624
4400541.98
liabilities 5.53 67 7.22 1.71 5.29 6.82
267Annual Report 2024 of China Fangda Group Co. Ltd.
Note: Based on the business development situation the Company has reported the rental income of real estate from the real estate
segment under main business revenue for this period.
(3) Others
Regional information on operating revenues:
In RMB
Item 2024 2023
In China 4027988850.55 3886216878.96
Out of China 396235347.16 405987837.05
Total 4424224197.71 4292204716.01
XVIII. Notes to Financial Statements of the Parent
1. Account receivable
(1) Account age
In RMB
Age Closing balance of book value Opening balance of book value
Within 1 year (inclusive) 2857394.06 416495.45
Over 3 years 359129.89 359129.89
3-4 years 359129.89
4-5 years 359129.89
Total 3216523.95 775625.34
(2) Disclosure by bad debt accrual method
In RMB
Closing balance Opening balance
Remaining book Remaining book
Bad debt provision Bad debt provision
Type value Book value Book
Proporti Provisio value Proporti Provisio value
Amount Amount Amount Amount
on n rate on n rate
Includin
g:
Account
receivab
le for 321652 331398. 288512 775625. 92032.8 683592.100.00% 10.30% 100.00% 11.87%
which 3.95 60 5.35 34 1 53
bad debt
provisio
268Annual Report 2024 of China Fangda Group Co. Ltd.
n is
made by
group
Includin
g:
Portfolio
321652331398.288512775625.92032.8683592.
3.100.00%10.30%100.00%11.87%
3.95605.3534153
Others
321652331398.288512775625.92032.8683592.
Total 100.00% 10.30% 100.00% 11.87%
3.95605.3534153
Provision for bad debts by combination: portfolio 3: Others business
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 2857394.06 20858.98 0.73%
1-2 years
2-3 years
3-4 years
4-5 years 359129.89 310539.62 86.47%
Over 5 years
Total 3216523.95 331398.60
Explanation of the basis for determining the provision: For the recognition criteria and explanation of the bad debt provision for
the portfolio see Section X V Important Accounting Policies and Accounting Estimates item 10 Financial Instruments.If the provision for bad debts on accounts receivable is being made based on the expected credit loss general model:
□ Applicable□ Inapplicable
(3) Bad debt provision made returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Opening
Type Written-back or Closing balancebalance Provision Canceled Others
recovered
Portfolio 3. Others 92032.81 239365.79 331398.60
Total 92032.81 239365.79 331398.60
(4) Accounts receivable and contract assets with the top-5 ending balances grouped by party owed
In RMB
Closing balance of
Percentage of total
Closing balance of provision for bad
Closing balance Closing ending balance of
accounts debts on accounts
Entity of accounts balance of accounts
receivable and receivable and
receivable contract assets receivable and
contract assets impairment of
contract assets
contract assets
No.1 1564854.29 1564854.29 48.65% 11423.44
No.2 1117948.18 1117948.18 34.76% 8161.02
No.3 359129.89 359129.89 11.17% 310539.62
No.4 150805.71 150805.71 4.69% 1100.88
No.5 8785.28 8785.28 0.27% 64.13
269Annual Report 2024 of China Fangda Group Co. Ltd.
Total 3201523.35 3201523.35 99.54% 331289.09
2. Other receivables
In RMB
Item Closing balance Opening balance
Other receivables 1622103166.85 1684718397.92
Total 1622103166.85 1684718397.92
In RMB
(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 80000.00
Others 62836.90 57199.41
Accounts between related parties within
1622041266.221684583242.78
the scope of consolidation
Total 1622104103.12 1684720442.19
(2) Account age
In RMB
Age Closing balance of book value Opening balance of book value
Within 1 year (inclusive) 53408271.79 692784064.86
1-2 years 642978380.00 92578310.00
2-3 years 92577980.00 694397404.79
Over 3 years 833139471.33 204960662.54
3-4 years 680897404.79 204960662.54
4-5 years 152242066.54
Total 1622104103.12 1684720442.19
(3) Disclosure by bad debt accrual method
In RMB
Closing balance Opening balance
Remaining book Remaining book
Bad debt provision Bad debt provision
Type value Book value Book
Proporti Provisio value Proporti Provisio value
Amount Amount Amount Amount
on n rate on n rate
Includin
g:
Provisio 162210 162210
n for bad 100.00% 936.27 0.00%
168472168471
4103.123166.850442.19
100.00%2044.270.00%8397.92
debts by
270Annual Report 2024 of China Fangda Group Co. Ltd.
combina
tion
Includin
g:
First 62836.9 61900.6
0.00%936.271.49%137199.135155.
stage 0 3 41
0.01%2044.271.49%14
Related
party
funds
within 162204 162204
100.00%0.000.00%1684583242.7899.99%0.000.00%
168458
the 1266.22 1266.22 3242.78
scope of
consolid
ation
162210162210
Total 100.00% 936.27 0.00% 1684720442.19 100.00% 2044.27 0.00%
168471
4103.123166.858397.92
Provision for bad debts by portfolio: Portfolio 1: stage one
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Portfolio 1: First stage 62836.90 936.27 1.49%
Total 62836.90 936.27
Description of the basis for determining the portfolio: Provision for bad debts is made on the basis of the general model of
expected credit losses.Provision for bad debts by portfolio: Portfolio 4: Amounts from related parties within the scope of consolidation
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Portfolio 4: related party
funds within the scope of 1622041266.22 0.00 0.00%
consolidation
Total 1622041266.22 0.00
Provision for bad debts based on general model of expected credit losses
In RMB
First stage Second stage Third stage
Expected credit loss for
Bad debt provision Expected credit loss forExpected credit losses the entire duration Total
the entire duration (no
in the next 12 months (credit impairment has
credit impairment)
occurred)
Balance on January 1
2044.270.000.002044.27
2024
Balance on January 1
2024 in the current
period
Provision -1108.00 -1108.00
Balance on December
936.270.000.00936.27
312024
271Annual Report 2024 of China Fangda Group Co. Ltd.
Changes in book balances with significant changes in the current period
□ Applicable□ Inapplicable
4) Bad debt provision made returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Opening
Type
balance Written-back
Closing balance
Provision Write-off Others
or recovered
Other receivables and
2044.27-1108.00936.27
bad debt provision
Total 2044.27 -1108.00 936.27
5) Balance of top 5 other receivables at the end of the period
In RMB
Balance of bad
debt provision
Entity By nature Closing balance Age Percentage (%)
at the end of
the period
53345434.89 Less than 1 year
Shenzhen Fangda Related party 625478380.00 1-2 years
Property funds within the
72577980.00 2-3 years 87.00% 0.00
Development Co. scope of
Ltd. consolidation 538000000.00 3-4 years
121782273.45 4-5 years
Fangda (Jiangxi) Related party 17500000.00 1-2 years
Property funds within the 20000000.00 2-3 years 11.12% 0.00
Development Co. scope of
Ltd. consolidation 142897404.79 3-4 years
Related party
Shihui
funds within the
International 30459793.09 3-4 years 1.88% 0.00
scope of
Holding Co. Ltd.consolidation
Non-affiliated
Reserve fund 31372.00 Less than 1 year 0.00 467.44
party
Social security Non-affiliated
27410.63 Less than 1 year 0.00 408.42
fees party
Total 1622100048.85 100.00% 875.86
3. Long-term share equity investment
In RMB
Closing balance Opening balance
Item Remaining Impairment Remaining Impairment
Book value Book value
book value provision book value provision
Investment in 1657062530. 1657062530. 1526831253. 1526831253.subsidiaries 00 00 00 00
272Annual Report 2024 of China Fangda Group Co. Ltd.
1657062530.1657062530.1526831253.1526831253.
Total
00000000
(1) Investment in subsidiaries
In RMB
Change (+-) Balance of
Beginning
impairment
Invested Opening balance of Closing
entity book value impairment Increased Decreased Impairment
provision at
Others book value
provisions investment investment provision
the end of
the period
Fangda 75195000 75195000
Jianke 0.00 0.00
Fangda
Jiangxi 74496600. 74496600.New 00 00
Material
Fangda 19800000 19800000
Property 0.00 0.00
Shihui
Internation 61653.00 61653.00
al
Fangda
99000000.99000000.
New
0000
Energy
Fangda
98000000.98000000.
Hongjun
0000
Investment
Fangda 23532300 23532300
0.00
Investment 0.00 0.00
Fangda
Intelligent 70000000. 12800000 19800000
Manufactur 00 0.00 0.00
ing
Fangda 23755427 23755427
Zhiyuan 7.00 7.00
15268312365554272353230016570625
Total
53.007.000.0030.00
4. Operational revenue and costs
In RMB
Amount occurred in the current period Occurred in previous period
Item
Income Cost Income Cost
Main business 22532419.32 81137.33
Other businesses 24692199.04 26289.08
Total 22532419.32 81137.33 24692199.04 26289.08
Note: Based on the business development situation the Company has reported the rental income of real estate from the parent
company under main business revenue for this period.Breakdown of operating revenues and operating costs:
In RMB
273Annual Report 2024 of China Fangda Group Co. Ltd.
Others Total
Contract classification
Turnover Operating cost Turnover Operating cost
Business type
Including: others 22532419.32 81137.33 22532419.32 81137.33
Total 22532419.32 81137.33 22532419.32 81137.33
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 RMB65594370.96 of which RMB13587159.35 is expected to be recognized in
2025 and RMB9355837.91 is expected to be recognized in 2026 RMB42651373.70 is expected to be recognized in 2027 and
beyond.
5. Investment income
In RMB
Item Amount occurred in the current period Occurred in previous period
Dividends distributed by subsidiaries 72929550.62 0.00
Total 72929550.62 0.00
XIX. Supplementary Materials
1. Detailed accidental gain/loss
□Applicable □ Inapplicable
In RMB
Item Amount Notes
Gain/loss of non-current assets -1101723.90
Government grants recognized in the current period's profit or loss (except for
government grants that are closely related to the Company's normal business
12652732.81
operations in line with national policies and in accordance with defined criteria and
have a continuous impact on the Company's profit or loss)
Gains and losses from changes in the fair value of financial assets and liabilities held
by non-financial corporations and gains and losses from the disposal of financial assets
-1663158.03
and liabilities except for effective hedging operations related to the Company's normal
business operations
Gain/loss from debt reorganization -118701.78
This amount was
spent on employee
resettlement
One-time expenses incurred by the Company due to discontinuation of certain
-10301966.12 associated with the
business activities such as expenditures for employee resettlement:
relocation of the
Company's
production site.Gain/loss from change of fair value of investment property measured at fair value in
-18397296.67
follow-up measurement
Other non-business income and expenditures other than the above 87650.88
274Annual Report 2024 of China Fangda Group Co. Ltd.
Less: Influenced amount of income tax -3890432.45
Influenced amount of minority shareholders' equity (after-tax) 12674.24
Total -14964704.60 --
Other gain/loss items satisfying the definition of non-recurring gain/loss account:
□ Applicable□ Inapplicable
The Company has no other gain/loss items satisfying the definition of non-recurring gain/loss account
Circumstance that should be defined as recurrent profit and loss to Explanation Announcement of Information Disclosure No. 1 -
Non-recurring gain/loss
□ Applicable□ Inapplicable
2. Net income on asset ratio and earning per share
Earning per share
Weighted average net
Profit of the report period
income/asset ratio Basic earnings per share Diluted Earnings per share
(yuan/share) (yuan/share)
Net profit attributable to common
2.41%0.130.13
shareholders of the Company
Net profit attributable to the
common owners of the PLC after
2.66%0.150.15
deducting of non-recurring
gains/losses
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profits and assets in financial statements disclosed according to the international
and Chinese account standards
□Applicable□ Inapplicable
(2) Differences in net profits and assets in financial statements disclosed according to the international
and Chinese account standards
□Applicable□ Inapplicable
(3) Differences in financial data using domestic and foreign accounting standards the overseas institution
name should be specified if the difference in data audited by an overseas auditor is adjusted
None
275
沪公网安备31011802005267号
