2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. CHINA FANGDA GROUP CO., LTD.
2018 Interm Financial Report
August 2018
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. I.Auditor’s report
Whether the interim report is audited
□ Yes√ No
The financial statements for H1 2014 have not been audited.
II. Financial statements
Unit for statements in notes to financial statements: RMB yuan
1. Consolidated Balance Sheet
Prepared by: China Fangda Group Co., Ltd.
30.06.18
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current asset:|||
|Monetary capital|1,199,195,175.72|1,180,398,479.51|
|Settlement provision|||
|Outgoing call loan|||
|Financial assets measured at fair|||
|value with variations accounted into|191,425,156.75||
|current income account|||
|Derivative financial assets|||
|Notes receivable|61,196,071.50|39,636,437.20|
|Account receivable|2,077,617,891.78|1,920,372,426.16|
|Prepayment|43,871,514.09|54,680,269.84|
|Insurance receivable|||
|Reinsurance receivable|||
|Provisions of Reinsurance|||
|contracts receivable|||
|Interest receivable|2,374,520.56|3,829,315.07|
|Dividend receivable|||
|Other receivables|83,295,634.69|57,075,357.62|
|Repurchasing of financial assets|||
|Inventory|726,389,203.30|819,610,960.67|
|Assets held for sales|||

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|Non-current assets due in 1 year|||
|Other current assets|270,720,575.33|439,890,493.06|
|Total current assets|4,656,085,743.72|4,515,493,739.13|
|Non-current assets:|||
|Loan and advancement provided|||
|Sellable financial assets|28,562,575.67|28,562,575.67|
|Investment held until mature|||
|Long-term receivable|||
|Long-term share equity investment|69,871,054.85|34,142,055.62|
|Investment real estate|2,332,213,399.66|2,253,794,404.55|
|Fixed assets|474,159,833.94|468,118,279.18|
|Construction in process|2,820,259.75|2,668,198.62|
|Engineering materials|||
|Disposal of fixed assets|||
|Productive biological assets|||
|Gas & petrol|||
|Intangible assets|80,168,033.16|58,869,444.53|
|R&D expense|||
|Goodwill|||
|Long-term amortizable expenses|1,658,790.79|2,046,202.29|
|Deferred income tax assets|245,982,195.38|230,597,590.58|
|Other non-current assets|1,447,483.00|31,130,198.46|
|Total of non-current assets|3,236,883,626.20|3,109,928,949.50|
|Total of assets|7,892,969,369.92|7,625,422,688.63|
|Current liabilities|||
|Short-term loans|524,000,000.00|616,000,000.00|
|Loans from Central Bank|||
|Deposit received and held for|||
|others|||
|Call loan received|||
|Financial liabilities measured at|||
|fair value with variations accounted into|||
|current income account|||
|Derivative financial liabilities|2,050,625.00|159,000.00|
|Notes payable|491,358,271.55|532,921,025.48|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|Account payable|862,659,220.78|946,392,258.92|
|Prepayment received|193,425,255.96|175,351,686.45|
|Selling of repurchased financial|||
|assets|||
|Fees and commissions payable|||
|Employees’ wage payable|19,873,819.40|40,399,130.75|
|Taxes payable|55,074,133.40|136,955,516.44|
|Interest payable|2,412,315.60|2,425,311.97|
|Dividend payable|||
|Other payables|587,168,313.71|501,189,510.69|
|Reinsurance fee payable|||
|Insurance contract provision|||
|Entrusted trading of securities|||
|Entrusted selling of securities|||
|Liabilities held for sales|||
|Non-current liabilities due in 1|||
||200,000,000.00|200,000,000.00|
|year|||
|Other current liabilities|12,076,092.33|9,531,014.81|
|Total current liabilities|2,950,098,047.73|3,161,324,455.51|
|Non-current liabilities:|||
|Long-term loans|1,293,978,153.39|893,978,153.39|
|Bond payable|||
|Including: preferred stock|||
|Perpetual bond|||
|Long-term payable|||
|Long-term employees’ wage|||
|payable|||
|Special payables|||
|Anticipated liabilities|4,427,700.40|6,368,353.05|
|Deferred earning|10,365,629.03|10,489,483.94|
|Deferred income tax liabilities|344,455,068.27|314,323,040.56|
|Other non-current liabilities|||
|Total of non-current liabilities|1,653,226,551.09|1,225,159,030.94|
|Total liabilities|4,603,324,598.82|4,386,483,486.45|
|Owner’s equity:|||

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|Share capital|1,183,642,254.00|1,183,642,254.00|
|Other equity tools|||
|Including: preferred stock|||
|Perpetual bond|||
|Capital reserves|72,829,484.96|72,829,484.96|
|Less: Shares in stock|||
|Other miscellaneous income|6,706,091.82|8,585,847.99|
|Special reserves|||
|Surplus reserves|110,690,396.65|110,690,396.65|
|Common risk provisions|||
|Retained profit|1,915,776,543.67|1,863,191,218.58|
|Total of owner’s equity belong to the|||
||3,289,644,771.10|3,238,939,202.18|
|parent company|||
|Minor shareholders’ equity|||
|Total of owners’ equity|3,289,644,771.10|3,238,939,202.18|
|Total of liabilities and owner’s interest|7,892,969,369.92|7,625,422,688.63|

 Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua
2. Balance Sheet of the Parent Company
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current asset:|||
|Monetary capital|340,242,138.19|310,299,329.68|
|Financial assets measured at fair|||
|value with variations accounted into|||
|current income account|||
|Derivative financial assets|76,569,871.27||
|Notes receivable|||
|Account receivable||408,154.54|
|Prepayment|118,131.74|349,740.31|
|Interest receivable||1,020,000.00|
|Dividend receivable|150,000,000.00|150,000,000.00|
|Other receivables|942,840,178.57|672,773,780.45|
|Inventory|||

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|Assets held for sales|||
|Non-current assets due in 1 year|||
|Other current assets|360,181.65|100,176,058.36|
|Total current assets|1,510,130,501.42|1,235,027,063.34|
|Non-current assets:|||
|Sellable financial assets|28,562,575.67|28,562,575.67|
|Investment held until mature|||
|Long-term receivable|||
|Long-term share equity investment|983,339,494.35|925,349,494.35|
|Investment real estate|307,321,568.00|307,321,568.00|
|Fixed assets|54,987,574.85|55,816,611.77|
|Construction in process|||
|Engineering materials|||
|Disposal of fixed assets|||
|Productive biological assets|||
|Gas & petrol|||
|Intangible assets|2,172,846.41|2,293,133.59|
|R&D expense|||
|Goodwill|||
|Long-term amortizable expenses|394,999.90|460,000.00|
|Deferred income tax assets|23,434,245.40|23,409,576.18|
|Other non-current assets|||
|Total of non-current assets|1,400,213,304.58|1,343,212,959.56|
|Total of assets|2,910,343,806.00|2,578,240,022.90|
|Current liabilities|||
|Short-term loans|250,000,000.00|250,000,000.00|
|Financial liabilities measured at|||
|fair value with variations accounted into|||
|current income account|||
|Derivative financial liabilities|||
|Notes payable|||
|Account payable|606,941.85|606,941.85|
|Prepayment received|693,045.60|721,888.86|
|Employees’ wage payable|943,281.35|2,151,237.91|
|Taxes payable|4,284,613.67|11,721,681.36|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|Interest payable|789,875.00|365,520.83|
|Dividend payable|||
|Other payables|306,095,876.47|287,607,287.54|
|Liabilities held for sales|||
|Non-current liabilities due in 1|||
|year|||
|Other current liabilities|||
|Total current liabilities|563,413,633.94|553,174,558.35|
|Non-current liabilities:|||
|Long-term loans|500,000,000.00||
|Bond payable|||
|Including: preferred stock|||
|Perpetual bond|||
|Long-term payable|||
|Long-term employees’ wage|||
|payable|||
|Special payables|||
|Anticipated liabilities|||
|Deferred earning|||
|Deferred income tax liabilities|63,769,081.63|63,864,007.22|
|Other non-current liabilities|||
|Total of non-current liabilities|563,769,081.63|63,864,007.22|
|Total liabilities|1,127,182,715.57|617,038,565.57|
|Owner’s equity:|||
|Share capital|1,183,642,254.00|1,183,642,254.00|
|Other equity tools|||
|Including: preferred stock|||
|Perpetual bond|||
|Capital reserves|71,736,128.89|71,736,128.89|
|Less: Shares in stock|||
|Other miscellaneous income|8,756,553.46|8,756,553.46|
|Special reserves|||
|Surplus reserves|110,690,396.65|110,690,396.65|
|Retained profit|408,335,757.43|586,376,124.33|
|Total of owners’ equity|1,783,161,090.43|1,961,201,457.33|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|Total of liabilities and owner’s interest|2,910,343,806.00|2,578,240,022.90|

 3. Consolidated Income Statement
In RMB
||||
|-|-|-|
|Item|Amount occurred in the current period|Occurred in previous period|
|1. Total revenue|1,442,050,896.53|1,399,710,941.29|
|Incl. Business income|1,442,050,896.53|1,399,710,941.29|
|Interest income|||
|Insurance fee earned|||
|Fee and commission|||
|received|||
|2. Total business cost|1,173,912,382.53|1,117,603,395.86|
|Incl. Business cost|935,486,175.73|903,397,926.97|
|Interest expense|||
|Fee and commission paid|||
|Insurance discharge payment|||
|Net claim amount paid|||
|Net insurance policy|||
|reserves provided|||
|Insurance policy dividend|||
|paid|||
|Reinsurance expenses|||
|Taxes and surcharges|101,204,195.03|104,072,276.80|
|Sales expense|27,060,141.24|23,137,281.77|
|Administrative expense|74,534,585.80|71,006,728.79|
|Financial expenses|33,772,321.68|25,897,314.89|
|Asset impairment loss|1,854,963.05|-9,908,133.36|
|Plus: gains from change of fair value|||
||-8,896,637.25|698,811.63|
|(“-“ for loss)|||
|Investment gains (“-“ for loss)|26,244,762.41|6,880,596.27|
|Incl. Investment gains from|||
|||-626,631.62|
|affiliates and joint ventures|||
|Exchange gains (“-“ for loss)|||
|Investment gains ("-" for loss)|-1,551,865.58|-87,244.32|
|Other gains|2,699,191.58|1,408,451.00|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|3. Operational profit (“-“ for loss)|286,633,965.16|291,008,160.01|
|Plus: non-operational income|7,066,038.41|4,507,515.09|
|Less: non-operational expenditure|522,160.43|229,327.22|
|4. Gross profit (“-“ for loss)|293,177,843.14|295,286,347.88|
|Less: Income tax expenses|63,046,179.95|67,768,104.52|
|5. Net profit (“-“ for net loss)|230,131,663.19|227,518,243.36|
|(1) Net profit from continuous|||
||230,131,663.19|227,518,243.36|
|operation ("-" for net loss)|||
|(2) Net profit from discontinuous|||
|operation ("-" for net loss)|||
|Net profit attributable to the owners|||
||230,131,663.19|228,003,319.43|
|of parent company|||
|Minor shareholders’ equity||-485,076.07|
|6. After-tax net amount of other misc.|||
||-1,879,756.17|-1,782,230.15|
|incomes|||
|After-tax net amount of other misc.|||
||-1,879,756.17|-1,782,230.15|
|incomes attributed to parent's owner|||
|(1) Other misc. incomes that cannot|||
|be re-classified into gain and loss|||
|1. Change in net liabilities or|||
|assets due to re-measurement set benefit|||
|program|||
|2. Shares enjoyed in other|||
|misc. incomes that cannot be reclassified|||
|into gain and loss by the invested entity|||
|under the equity law|||
|(2) Other misc. incomes that will be|||
||-1,879,756.17|-1,782,230.15|
|re-classified into gain and loss|||
|1. Shares enjoyed in other|||
|misc. incomes that cannot be reclassified|||
|into gain and loss by the invested entity|||
|under the equity law|||
|2．Change in the fair value of|||
|financial asset for sale|||
|3 Held-to-mature investment|||
|reclassified as gain and loss in the|||
|financial assets for sales|||
|4. Effective part in the gain|-1,839,001.25|-1,782,230.15|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|and loss of arbitrage of cash flow|||
|5. Translation difference of|-40,754.92||
|foreign exchange statement|||
|6. Others|||
|After-tax net of other misc. income|||
|attributed to minority shareholders|||
|7. Total of misc. incomes|228,251,907.02|225,736,013.21|
|Total of misc. incomes attributable|228,251,907.02||
|||226,221,089.28|
|to the owners of the parent company|||
|Total misc gains attributable to the|||
|||-485,076.07|
|minor shareholders|||
|8. Earnings per share:|||
|(1) Basic earnings per share|0.1944|0.1926|
|(2) Diluted earnings per share|0.1944|0.1926|

 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|Amount occurred in the current period|Occurred in previous period|
|1. Turnover|15,112,290.20|13,854,120.29|
|Less: Operation cost|673,578.25|803,595.88|
|Taxes and surcharges|650,802.82|653,338.66|
|Sales expense|||
|Administrative expense|10,133,470.85|12,556,952.25|
|Financial expenses|7,548,692.03|-1,445,023.38|
|Asset impairment loss|98,676.88|37,911.33|
|Plus: gains from change of fairvalue (“-“ for loss)|||
||-3,429,128.73||
|Investment gains (“-“ for loss)|8,138,483.22|1,014,671.43|
|Incl. Investment gains fromaffiliates and joint ventures|||
|||-626,631.62|
|Investment gains ("-" for loss)|-574.06|-31,271.82|
|Other gains|114,556.59||

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|2. Operational profit (“-“ for loss)|830,406.39|2,230,745.16|
|Plus: non-operational income|258,644.66|3,614,153.51|
|Less: non-operational expenditure|738.00||
|3. Gross profit (“-“ for loss)|1,088,313.05|5,844,898.67|
|Less: Income tax expenses|1,582,341.85|1,301,047.38|
|4. Net profit (“-“ for net loss)|-494,028.80|4,543,851.29|
|(1) Net profit from continuous|||
||-494,028.80|4,543,851.29|
|operation ("-" for net loss)|||
|(2) Net profit from discontinuous|||
|operation ("-" for net loss)|||
|5. After-tax net amount of other misc.|||
|incomes|||
|(1) Other misc. incomes that|||
|cannot be re-classified into gain and|||
|loss|||
|1. Change in net liabilities|||
|or assets due to re-measurement set|||
|benefit program|||
|2. Shares enjoyed in other|||
|misc. incomes that cannot be|||
|reclassified into gain and loss by the|||
|invested entity under the equity law|||
|(2) Other misc. incomes that will|||
|be re-classified into gain and loss|||
|1. Shares enjoyed in other|||
|misc. incomes that cannot be|||
|reclassified into gain and loss by the|||
|invested entity under the equity law|||
|2．Change in the fair value|||
|of financial asset for sale|||
|3 Held-to-mature|||
|investment reclassified as gain and loss|||
|in the financial assets for sales|||
|4. Effective part in the gain|||
|and loss of arbitrage of cash flow|||
|5. Translation difference of|||
|foreign exchange statement|||
|6. Others|||

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|6. Total of misc. incomes|-494,028.80|4,543,851.29|
|7. Earnings per share:|||
|(1) Basic earnings per share|||
|(2) Diluted earnings per share|||

5. Consolidated Cash Flow Statement
In RMB
||||
|-|-|-|
|Item|Amount occurred in the current period|Occurred in previous period|
|1. Net cash flow from business|||
|operations:|||
|Cash received from sales of|||
||1,344,633,305.24|1,707,815,692.38|
|products and providing of services|||
|Net increase of customer deposits|||
|and capital kept for brother company|||
|Net increase of loans from central|||
|bank|||
|Net increase of inter-bank loans|||
|from other financial bodies|||
|Cash received against original|||
|insurance contract|||
|Net cash received from reinsurance|||
|business|||
|Net increase of client deposit and|||
|investment|||
|Increase in proposal of financial|||
|assets measured at fair value with|||
|variations accounted into current|||
|income account|||
|Cash received as interest,|||
|processing fee, and commission|||
|Net increase of inter-bank fund|||
|received|||
|Net increase of repurchasing|||
|business|||
|Tax refunded|876,405.15|32,965,303.99|
|Other cash received from business|||
||243,292,723.31|91,715,380.92|
|operation|||

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|Sub-total of cash inflow from business|||
||1,588,802,433.70|1,832,496,377.29|
|operations|||
|Cash paid for purchasing products|||
||956,677,112.92|1,062,204,721.25|
|and services|||
|Net increase of client trade and|||
|advance|||
|Net increase of savings in central|||
|bank and brother company|||
|Cash paid for original contract|||
|claim|||
|Cash paid for interest, processing|||
|fee and commission|||
|Cash paid for policy dividend|||
|Cash paid to and for the staff|141,086,415.75|133,690,986.71|
|Taxes paid|208,947,437.06|320,067,254.32|
|Other cash paid for business|||
||313,517,735.61|101,270,207.63|
|activities|||
|Sub-total of cash outflow from business|||
||1,620,228,701.34|1,617,233,169.91|
|operations|||
|Cash flow generated by business|||
||-31,426,267.64|215,263,207.38|
|operations, net|||
|2. Cash flow generated by investment:|||
|Cash received from investment|||
||4,675,800,000.00|4,330,200,000.00|
|recovery|||
|Cash received as investment profit|28,989,224.36|7,834,655.67|
|Net cash retrieved from disposal of|||
|fixed assets, intangible assets, and other|9,501,692.00|3,539,281.00|
|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|||
||4,714,290,916.36|4,341,573,936.67|
|investment|||
|Cash paid for construction of fixed|||
|assets, intangible assets and other|45,443,864.13|30,780,625.38|
|long-term assets|||
|Cash paid as investment|4,712,583,785.00|4,455,200,000.00|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|Net increase of loan against pledge|||
|Net cash paid for acquiring|||
|subsidiaries and other operational units|||
|Other cash paid for investment|||
|Subtotal of cash outflows|4,758,027,649.13|4,485,980,625.38|
|Cash flow generated by investment|||
||-43,736,732.77|-144,406,688.71|
|activities, net|||
|3. Cash flow generated by financing|||
|activities:|||
|Cash received from investment|||
|Incl. Cash received from|||
|investment attracted by subsidiaries|||
|from minority shareholders|||
|Cash received from borrowed|||
||508,000,000.00|393,009,058.05|
|loans|||
|Cash received from bond placing|||
|Other cash received from financing|||
|activities|||
|Subtotal of cash inflow from financing|||
||508,000,000.00|393,009,058.05|
|activities|||
|Cash paid to repay debts|200,000,000.00|290,000,000.00|
|Cash paid as dividend, profit, or|||
||213,616,393.31|316,495,379.40|
|interests|||
|Incl. Dividend and profit paid by|||
|subsidiaries to minority shareholders|||
|Other cash paid for financing|||
|activities|||
|Subtotal of cash outflow from financing|||
||413,616,393.31|606,495,379.40|
|activities|||
|Net cash flow generated by financing|||
||94,383,606.69|-213,486,321.35|
|activities|||
|4. Influence of exchange rate changes|||
||1,005,803.87|-1,104,468.23|
|on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||20,226,410.15|-143,734,270.91|
|equivalents|||
|Plus: Balance of cash and cash|||
||931,285,535.55|935,824,575.40|
|equivalents at the beginning of term|||
|6. Balance of cash and cash equivalents|951,511,945.70|792,090,304.49|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||
|-|
|at the end of the period|

6. Cash Flow Statement of the Parent Company
In RMB
||||
|-|-|-|
|Item|Amount occurred in the current period|Occurred in previous period|
|1. Net cash flow from business|||
|operations:|||
|Cash received from sales of|||
||147,110,597.39|12,095,764.44|
|products and providing of services|||
|Tax refunded|||
|Other cash received from business|||
||882,838,625.05|520,946,233.20|
|operation|||
|Sub-total of cash inflow from business|||
||1,029,949,222.44|533,041,997.64|
|operations|||
|Cash paid for purchasing products|||
||409,933.49|27,852,746.78|
|and services|||
|Cash paid to and for the staff|7,664,913.27|9,265,037.35|
|Taxes paid|14,786,626.11|1,405,482.25|
|Other cash paid for business|||
||1,276,945,197.63|402,671,567.73|
|activities|||
|Sub-total of cash outflow from business|||
||1,299,806,670.50|441,194,834.11|
|operations|||
|Cash flow generated by business|||
||-269,857,448.06|91,847,163.53|
|operations, net|||
|2. Cash flow generated by investment:|||
|Cash received from investment|||
||1,879,880,000.00|1,272,000,000.00|
|recovery|||
|Cash received as investment profit|9,159,483.22|435,352,305.75|
|Net cash retrieved from disposal of|||
|fixed assets, intangible assets, and other|||
|long-term assets|||
|Net cash received from disposal of|||
||10,000,000.00||
|subsidiaries or other operational units|||
|Other investment-related cash|||
|received|||
|Sub-total of cash inflow generated from|||
||1,899,039,483.22|1,707,352,305.75|
|investment|||

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|Cash paid for construction of fixed|||
|assets, intangible assets and other|421,910.00|655,772.35|
|long-term assets|||
|Cash paid as investment|1,917,870,000.00|1,272,000,000.00|
|Net cash paid for acquiring|||
|subsidiaries and other operational units|||
|Other cash paid for investment|||
|Subtotal of cash outflows|1,918,291,910.00|1,272,655,772.35|
|Cash flow generated by investment|||
||-19,252,426.78|434,696,533.40|
|activities, net|||
|3. Cash flow generated by financing|||
|activities:|||
|Cash received from investment|||
|Cash received from borrowed|||
||500,000,000.00||
|loans|||
|Cash received from bond placing|||
|Other cash received from financing|||
|activities|||
|Subtotal of cash inflow from financing|||
||500,000,000.00||
|activities|||
|Cash paid to repay debts||100,000,000.00|
|Cash paid as dividend, profit, or|||
||180,947,316.65|279,409,832.29|
|interests|||
|Other cash paid for financing|||
|activities|||
|Subtotal of cash outflow from financing|||
||180,947,316.65|379,409,832.29|
|activities|||
|Net cash flow generated by financing|||
||319,052,683.35|-379,409,832.29|
|activities|||
|4. Influence of exchange rate changes|||
|||-2.88|
|on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||29,942,808.51|147,133,861.76|
|equivalents|||
|Plus: Balance of cash and cash|||
||310,049,329.68|74,159,732.87|
|equivalents at the beginning of term|||
|6. Balance of cash and cash equivalents|||
||339,992,138.19|221,293,594.63|
|at the end of the period|||

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. 7. Statement of Change inOwners’ Equity (Consolidated)
Amount of the Current Term
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Current period|||||||||||||
||Owners’ Equity Attributable to the Parent Company|||||||||||||
|||||||||||||Minor||
|||Other equity tools|||||Other|||Commo|||Total of|
|Item||||||||||||||
|||||||Less:||||||shareho||
||Share|Prefer|Perpet||Capital||miscella|Special|Surplus|n risk|Retaine||owners’|
|||||Other||Shares||||||lders’||
||capital|red|ual||reserves||neous|reserves|reserves|provisio|d profit||equity|
|||||s||in stock||||||equity||
|||share|bond||||income|||ns||||
||1,183,||||||||||1,863,1||3,238,9|
|1. Balance at the|||||72,829,||8,585,8||110,690|||||
||642,25||||||||||91,218.||39,202.|
|end of last year|||||484.96||47.99||,396.65|||||
||4.00||||||||||58||18|
|Plus:||||||||||||||
|Changes in||||||||||||||
|accounting||||||||||||||
|policies||||||||||||||
|Correction of||||||||||||||
|previous errors||||||||||||||
|Consolidation of||||||||||||||
|entities under||||||||||||||
|common control||||||||||||||
|Others||||||||||||||
|2. Balance at the|1,183,||||||||||1,863,1||3,238,9|
||||||72,829,||8,585,8||110,690|||||
|beginning of|642,25||||||||||91,218.||39,202.|
||||||484.96||47.99||,396.65|||||
|current year|4.00||||||||||58||18|
|3. Amount of||||||||||||||
|change in current|||||||-1,879,7||||52,585,||50,705,|
|term (“-“ for|||||||56.17||||325.09||568.92|
|decrease)||||||||||||||
|(1) Total of misc.|||||||-1,879,7||||230,131||228,251|
|incomes|||||||56.17||||,663.19||,907.02|
|(2) Investment or||||||||||||||
|decreasing of||||||||||||||
|capital by owners||||||||||||||
|1. Common shares||||||||||||||
|contributed by||||||||||||||
|shareholders||||||||||||||

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|2. Capital|||
|contributed by|||
|other equity|||
|instrument helders|||
|3. Amount of|||
|shares paid and|||
|accounted as|||
|owners’ equity|||
|4. Others|||
||-177,54|-177,54|
|(3) Profit|||
||6,338.1|6,338.1|
|allotment|||
||0|0|
|1. Providing of|||
|surplus reserves|||
|2. Common risk|||
|provision|||
|3. Allotment to the|-177,54|-177,54|
|owners (or|6,338.1|6,338.1|
|shareholders)|0|0|
|4. Others|||
|(4) Internal|||
|transferring of|||
|owners’ equity|||
|1. Capitalizing of|||
|capital reserves (or|||
|to capital shares)|||
|2. Capitalizing of|||
|surplus reserves|||
|(or to capital|||
|shares)|||
|3. Making up|||
|losses by surplus|||
|reserves|||
|4. Others|||
|(5) Special|||
|reserves|||
|1. Provided this|||
|year|||
|2. Used this term|||

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||||||
|-|-|-|-|-|-|-|
|(6) Others|||||||
||1,183,||||1,915,7|3,289,644,771.10|
|4. Balance at the||72,829,|6,706,0|110,690|||
||642,25||||76,543.||
|end of this period||484.96|91.82|,396.65|||
||4.00||||67||

 Amount of Last Year
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Last period|||||||||||||
||Owners’ Equity Attributable to the Parent Company|||||||||||||
|||||||||||||Minor||
|||Other equity tools|||||Other|||Commo|||Total of|
|Item||||||||||||||
|||||||Less:||||||shareho||
||Share|Prefer|Perpet||Capital||miscella|Special|Surplus|n risk|Retaine||owners’|
|||||Other||Shares||||||lders’||
||capital|red|ual||reserves||neous|reserves|reserves|provisio|d profit||equity|
|||||s||in stock||||||equity||
|||share|bond||||income|||ns||||
||756,90||||||||||||1,334,0|
|1. Balance at the|||||79,099,||91,831.||51,123,||432,271|14,546,||
||9,905.||||||||||||43,084.|
|end of last year|||||619.14||63||554.51||,424.56|750.03||
||00||||||||||||87|
|Plus:||||||||||||||
|Changes in||||||||||||||
|accounting||||||||||||||
|policies||||||||||||||
|Correction of||||||||||||||
|previous errors||||||||||||||
|Consolidation of||||||||||||||
|entities under||||||||||||||
|common control||||||||||||||
|Others||||||||||||||
|2. Balance at the|756,90||||||||||||1,334,0|
||||||79,099,||91,831.||51,123,||432,271|14,546,||
|beginning of|9,905.||||||||||||43,084.|
||||||619.14||63||554.51||,424.56|750.03||
|current year|00||||||||||||87|
|3. Amount of||||||||||||||
|change in current|||||||1,045,8||||-22,534,|-4,528,|-26,016,|
||||||94.24|||||||||
|term (“-“ for|||||||61.25||||585.14|143.94|773.59|
|decrease)||||||||||||||
|(1) Total of misc.|||||||1,045,8||||53,156,|-4,528,|49,674,|
|incomes|||||||61.25||||405.36|143.94|122.67|
|(2) Investment or||||||||||||||
|decreasing of|||||94.24||||||||94.24|
|capital by owners||||||||||||||

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
|||||
|-|-|-|-|
|1. Common shares||||
|contributed by||||
|shareholders||||
|2. Capital||||
|contributed by||||
|other equity||||
|instrument helders||||
|3. Amount of||||
|shares paid and||||
|accounted as||||
|owners’ equity||||
|4. Others|94.24||94.24|
|(3) Profit||-75,690,|-75,690,|
|allotment||990.50|990.50|
|1. Providing of||||
|surplus reserves||||
|2. Common risk||||
|provision||||
|3. Allotment to the||||
|||-75,690,|-75,690,|
|owners (or||||
|||990.50|990.50|
|shareholders)||||
|4. Others||||
|(4) Internal||||
|transferring of||||
|owners’ equity||||
|1. Capitalizing of||||
|capital reserves (or||||
|to capital shares)||||
|2. Capitalizing of||||
|surplus reserves||||
|(or to capital||||
|shares)||||
|3. Making up||||
|losses by surplus||||
|reserves||||
|4. Others||||
|(5) Special||||
|reserves||||
|1. Provided this||||
|year||||

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
|||||||||
|-|-|-|-|-|-|-|-|
|2. Used this term||||||||
|(6) Others||||||||
||756,90||||||1,308,0|
|4. Balance at the||79,099,|1,137,6|51,123,|409,736|10,018,||
||9,905.||||||26,311.|
|end of this period||713.38|92.88|554.51|,839.42|606.09||
||00||||||28|

 8. Statement of Change inOwners’ Equity (Parent Company)
Amount of the Current Term
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Current period|||||||||||
|||Other equity tools|||||Other|||||
|||||||Less:|||||Total of|
|Item|Share|Preferre PerpetuOthersd share al bond|||Capital||miscellan|Special|Surplus|Retaine||
|||Preferre|Perpetu|||Shares in|||||owners’|
||capital|||Others|reserves||eous|reserves|reserves|d profit||
|||d share|al bond|||stock|||||equity|
||||||||income|||||
|1. Balance at the|1,183,64||||71,736,12||8,756,553||110,690,3|586,376|1,961,201|
|end of last year|2,254.00||||8.89||.46||96.65|,124.33|,457.33|
|Plus:||||||||||||
|Changes in||||||||||||
|accounting||||||||||||
|policies||||||||||||
|Correction of||||||||||||
|previous errors||||||||||||
|Others||||||||||||
|2. Balance at the||||||||||||
||1,183,64||||71,736,12||8,756,553||110,690,3|586,376|1,961,201|
|beginning of||||||||||||
||2,254.00||||8.89||.46||96.65|,124.33|,457.33|
|current year||||||||||||
|3. Amount of||||||||||||
|||||||||||-178,04||
|change in current|||||||||||-178,040,|
|||||||||||0,366.9||
|term (“-“ for|||||||||||366.90|
|||||||||||0||
|decrease)||||||||||||
|(1) Total of misc.||||||||||-494,02|-494,028.|
|incomes||||||||||8.80|80|
|(2) Investment or||||||||||||
|decreasing of||||||||||||
|capital by owners||||||||||||
|1. Common shares||||||||||||
|contributed by||||||||||||
|shareholders||||||||||||

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||||||
|-|-|-|-|-|-|-|
|2. Capital|||||||
|contributed by|||||||
|other equity|||||||
|instrument helders|||||||
|3. Amount of|||||||
|shares paid and|||||||
|accounted as|||||||
|owners’ equity|||||||
|4. Others|||||||
||||||-177,54||
|(3) Profit||||||-177,546,|
||||||6,338.1||
|allotment||||||338.10|
||||||0||
|1. Providing of|||||||
|surplus reserves|||||||
|2. Allotment to the|||||-177,54||
|||||||-177,546,|
|owners (or|||||6,338.1||
|||||||338.10|
|shareholders)|||||0||
|3. Others|||||||
|(4) Internal|||||||
|transferring of|||||||
|owners’ equity|||||||
|1. Capitalizing of|||||||
|capital reserves (or|||||||
|to capital shares)|||||||
|2. Capitalizing of|||||||
|surplus reserves|||||||
|(or to capital|||||||
|shares)|||||||
|3. Making up|||||||
|losses by surplus|||||||
|reserves|||||||
|4. Others|||||||
|(5) Special|||||||
|reserves|||||||
|1. Provided this|||||||
|year|||||||
|2. Used this term|||||||
|(6) Others|||||||
|4. Balance at the|1,183,64|71,736,12|8,756,553|110,690,3|408,335|1,783,161|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||||||
|-|-|-|-|-|-|-|
|end of this period|2,254.00|8.89|.46|96.65|,757.43|,090.43|

 Amount of Last Year
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Last period|||||||||||
|||Other equity tools|||||Other|||||
|||||||Less:|||||Total of|
|Item|Share|Preferre PerpetuOthersd share al bond|||Capital||miscellan|Special|Surplus|Retaine||
|||Preferre|Perpetu|||Shares in|||||owners’|
||capital|||Others|reserves||eous|reserves|reserves|d profit||
|||d share|al bond|||stock|||||equity|
||||||||income|||||
|1. Balance at the|789,094,||||466,283,5||||88,839,79|665,903|2,010,213|
||||||||91,831.63|||||
|end of last year|836.00||||46.89||||0.50|,861.54|,866.56|
|Plus:||||||||||||
|Changes in||||||||||||
|accounting||||||||||||
|policies||||||||||||
|Correction of||||||||||||
|previous errors||||||||||||
|Others||||||||||||
|2. Balance at the||||||||||||
||789,094,||||466,283,5||||88,839,79|665,903|2,010,213|
|beginning of|||||||91,831.63|||||
||836.00||||46.89||||0.50|,861.54|,866.56|
|current year||||||||||||
|3. Amount of||||||||||||
|||||||||||-271,63||
|change in current|394,547,||||-394,547,||||||-271,639,|
|||||||||||9,341.3||
|term (“-“ for|418.00||||418.00||||||341.31|
|||||||||||1||
|decrease)||||||||||||
|(1) Total of misc.||||||||||4,543,8|4,543,851|
|incomes||||||||||51.29|.29|
|(2) Investment or||||||||||||
|decreasing of||||||||||||
|capital by owners||||||||||||
|1. Common shares||||||||||||
|contributed by||||||||||||
|shareholders||||||||||||
|2. Capital||||||||||||
|contributed by||||||||||||
|other equity||||||||||||
|instrument helders||||||||||||
|3. Amount of||||||||||||
|shares paid and||||||||||||
|accounted as||||||||||||

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||||||
|-|-|-|-|-|-|-|
|owners’ equity|||||||
|4. Others|||||||
||||||-276,18||
|(3) Profit||||||-276,183,|
||||||3,192.6||
|allotment||||||192.60|
||||||0||
|1. Providing of|||||||
|surplus reserves|||||||
|2. Allotment to the|||||-276,18||
|||||||-276,183,|
|owners (or|||||3,192.6||
|||||||192.60|
|shareholders)|||||0||
|3. Others|||||||
|(4) Internal|||||||
||394,547,|-394,547,|||||
|transferring of|||||||
||418.00|418.00|||||
|owners’ equity|||||||
|1. Capitalizing of|||||||
||394,547,|-394,547,|||||
|capital reserves (or|||||||
||418.00|418.00|||||
|to capital shares)|||||||
|2. Capitalizing of|||||||
|surplus reserves|||||||
|(or to capital|||||||
|shares)|||||||
|3. Making up|||||||
|losses by surplus|||||||
|reserves|||||||
|4. Others|||||||
|(5) Special|||||||
|reserves|||||||
|1. Provided this|||||||
|year|||||||
|2. Used this term|||||||
|(6) Others|||||||
|4. Balance at the|1,183,64|71,736,12||88,839,79|394,264|1,738,574|
||||91,831.63||||
|end of this period|2,254.00|8.89||0.50|,520.23|,525.25|

 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 Building, Kejinan Road 12, High-tech Zone, Shenzhen. Mr. Xiong Jianming is
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. 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 has established a corporate governance structure that comprisesshareholders’ meeting, board of directors and supervisory committee. Currently, the Company sets up the President Office, Administrative Department, HR Department, Enterprise Management Department, Financial Department, Audit and Supervisory Department, Securities Department, Technology Innovation Department and IT Department and has established subsidiaries including Fangda Decoration, Fangda Automatic, Fangda New Material, Fangda Property and Fangda New Energy.
The business nature and main business operations of the Company and subsidiaries (“the Group”) include (1) production and sales of curtain wall materials, design, production and installation of construction curtain walls; (2) assembly and production of subway screen doors; (3) development and operation of real estate projects on land, of which rights have been obtained lawfully; (4)R&D, installation and sales of PV devices, design and installation of PV power plants.
The financial statements and notes are approved at the 9th meeting of the 8th term of the Board held on 03.08.18.
The consolidation scope for the consolidated financial statements includes the Company and all subsidiaries. Two subsidiaries are newly consolidated in this period. In this period, Fangda Decoration Engineering (Shenyang) Co. Ltd. an indirectly controlled subsidiary was cancelled and no longer controlled. Therefore, one subsidiary is moved out of the consolidation scope in this period. See Note 8 Change to consolidation scope and Note 9 Interests in other entities.
IV. Basis for the preparation of financial statements
1. Preparation basis
The financial statements are prepared according to the enterprise financial standard and guidelines, interpretation and other related regulations (“the Standard”) issued by the Ministry of Finance. In addition, the Group also complies with the "Regulations on the Compilation and Submission of Information Disclosures by Companies That Offer Securities to the Public No. 15 - General Provisions on Financial Reporting" (revised in 2014) and the "Rules for the Compilation and Submission of Information Disclosures to Companies That Publicly Issue Securities" No. 11 - Special Provisions on the Notes to the Financial Statements of Companies Engaged in Real Estate Development Disclosure of Financial Information.
The Group prepares the financial statements based on continuous operation.
The Group's auditing is based on the accrual basis. Except for some financial instruments and property held for investment, the financial statements are prepared based on historical costs. In case of any asset impairment, the impairment provision will be made as required.
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.
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. V. Significant Account Policies and Estimates
Specific accounting policy and estimate prompt:
Whether the Company needs to comply with disclosure requirements of special industries
Yes
Property development and decoration industries
Specific accounting policy and estimate prompt:
The Group determines the accounting policies and income recognition policies for investment real estate according to the production and business features. For details, see Note 5. 13 and Note 5. 28.
1. Statement of compliance to the Enterprise Accounting Standard
The financial report and statements are prepared with compliance to the requirement of the Enterprise Accounting Standard. They reflect the financial position as of 30.06.18, and business performance and cash flow situation in Year 2018 of the Company frankly and completely.
2. Fiscal Period
The fiscal year of the Group is the solar calendar year, that is from January 1 to December 31.
3. Operation period
The operation period of the Group is 12 months.
4. Bookkeeping standard money
The Company, domestic subsidiaries and overseas subsidiary Shihui International Holding Co., Ltd. use RMB as bookkeeping standard money. Overseas subsidiaries Automatic System (Hong Kong) Co., Ltd. and Fangda Australia Pty Ltd use HKD and AUD as bookkeeping standard money respectively. The Group prepares financial statements in RMB.
5. Accounting treatment of the entities under common and different control
(1) Consolidation of entities under common control
Assets and liabilities obtained by the merging party are calculated at their book value with the merged parties at the merger day in the consolidated financial statement of the merging party in addition to the adjustment made given the difference in accounting policies. The differences between the book value of net assets and the book value of consideration price (or the total of face value of share issued) are adjusted to the capital reserve (share capital premium). If the share capital premium is not enough to offset the difference, it will be adjusted to the retained gains.
Enterprise merger under common control through multiple transactions
In separate financial statements, the initial investment cost is the book value of the mergedparty’s net assets that can be shared by the
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. merging party in the consolidate financial statements of the final controlling party according to the shareholding percentage on the merging date; 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.
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 controllingparty’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 currentperiod’s profit or loss.
(2) Consolidation of entities under different control
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. On the acquisition day, the assets and liabilities (if any) acquired by the Group from the acquired party are recognized on the fair value.
If the merger costs exceed the fair value of the recognizable net assets of the acquired party in the merger, it is recognized as goodwill and measured based the costs after the accumulative impairment provision is deducted; if the the fair value exceeds the costs, it is included in the income statement for the period after being re-examined.
Where there is new or further evidence on the condition existing on the acquisition date 12 months later and adjustment needs to be made, the good will should be adjusted and merged.
(3) Treatment of related transaction fee in enterprise merger
Agency expenses and other administrative expenses such as auditing, legal consulting, or appraisal services occurred relating to the merger of entities are accounted into current income account when occurred. The transaction fees of equity certificates or liability certificates issued by the purchaser for payment for the acquisition are accounted at the initial amount of the certificates.
6. Preparation of Consolidated Financial Statements
(1) Consolidation scope
The consolidate scope of consolidated financial statements is determined based on control. Control means the power possessed by the Group 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. Subsidiaries are enterprises controlled by the Company.
(2). Preparation of Consolidated Financial Statements
The consolidated financial statements are prepared by the Company based on financial statements of the Company and subsidiaries and according to other related information. During preparation of consolidated financial statements, the accounting policies and period of the Company and subsidiaries must be the same. Major transactions and balances between companies are offset.
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. Subsidiaries and businesses increased because of merger of enterprises under the common control during the report period are deemed consolidated into the consolidate scope from the date of becoming controlled by the final party. The operating result and cash flows of the subsidiaries and businesses from the date of becoming controlled by the final party should be incorporated into the consolidate income statement and consolidate cash flow statement.
For subsidiaries and businesses increased because of merger of enterprises not under the common control, their incomes, expenses and profits between the date of acquisition and end of the report period should be incorporated into the consolidated income statement, and the cash flows should be incorporated into the consolidated cash flow statement.
The part of theshareholders’ equity in subsidiaries not owned the Company are separately listed under theshareholders’ equity as minorityshareholders’ equity in the consolidated balance sheet.The part of thesubsidiaries’ net profits and losses for the current period that belongs to minority shareholders is listed as minorityshareholders’ profits and losses under net profit in the consolidated income statement. If the losses of subsidiaries shared by the minority shareholders exceed the part of theowners’ equity of the subsudiaries at the beginning of the period, the excessive part will offset the minorityshareholders’ equity.
(3) Acquisition of subsidiary minority interests
The difference between the investment cost of the long-term equity obtained from acquisition of minority interests and the share of net assets in the subsidiary calculated continuously based on the increased shareholding percentage, and the difference between the disposal income obtained from the partial disposal of thesubsidiary’s equity investment without losing the control power and the share of net assets in the subsidiary calculated continuously based on the increased shareholding percentage should be adjusted and consolidated in the capital surplus in the consolidated balance sheet. Where the capital surplus falls short, the retained income should be adjusted.
(4) Treatment of loss ofsubsidiaries’ control power
For loss of control over subsidiaries due to disposal of partial equity investment or other reasons, the remaining equity should be re-measured at the fair value on the date of loss of the control power; the sum of the consideration obtained from the disposal of stock equity and the fair value of the remaining equity, minus the sum of the share of the netassets’ book value calculated continuously from the acquisition date according to the original shareholding percentage and the goodwill should be recorded in the investment gain of the current period of the loss of control power.
Other misc. incomes related to the equity investment in the original subsidiary is transferred to the currentperiod’s profit and loss when the control power is losted, except for the other misc. incomes generated by remeasurement and resetting of earning plan or change in the net assets by the invested party.
7. Recognition of cash and cash equivalents
Cash refers to cash on hand and deposits that can be used at any time for payment. Cash equivalent refers to the investments with short term, strong liquidity and small risk of value fluctuation that are held by the Group and easily converted into cash with known amount.
8. Foreign exchange business and foreign exchange statement translation
(1) Foreign currencies
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. Trades of the Group made in foreign currencies are translated into RMB basing on the spot exchange rate on the date when the trade is conducted.
At the balance sheet date, foreign currency items are translated on the spot exchange rate of the balance sheet date. The exchange differences caused by the difference in exchange rates on the balance sheet date and initial recognizing date or previous balance sheet date are included in the current profits and losses. Non-monetary items accounted in foreign currency and on historical costs are exchanged with the spot exchange rate on the transaction date. Non-monetary items accounted in foreign currency and on fair value are exchanged with the spot exchange rate on the determination date of the fair value. The exchange difference between the accounting standard-currency amount and the original accounting standard-currency amount are included in the current profits and losses.
(2) Translation of foreign exchange statement
On the balance sheet date, when foreign currency financial statements of overseas subsidiaries are converted, the assets and liabilities items in the balance sheet are converted using the spot exchange rate on the balance sheet date. Theshareholders’ equity items are calculated as “undistributed profits”, except for other items. The spot exchange rate on the date of occurrence is used for conversion. The income and expense items in the income statement are translated using the exchange rate that is determined by thesystem’s reasonable method and approximate to the spot exchange rate on the transaction date.
All items in the cash flow statement are converted according to the exchange rate that is determined by the system's reasonable method and approximate to the spot exchange rate on the day the cash flow occurs. The impact of changes in exchange rates on cash is used as a reconciliation item, which is separately presented in the cash flow statement “Items Affecting Exchange Rate Movements on Cash and Cash Equivalents”.
The difference arising from the translation of the financial statements is reflected in the "Other comprehensive income" item under the shareholders' equity item in the balance sheet.
When foreign operations are disposed of and the control rights are lost, the difference in foreign currency statements related to the overseas operations that are listed in the shareholders' equity items in the balance sheet is transferred to the profit or loss for the current period, either in whole or in proportion to the disposal of the foreign operations.
9. Financial instrument
Financial instrument refers to acompany’s financial assets and contracts that form other units of financial liabilitie or equity instruments.
(1) Recognition and derecognition of financial instrument
The Group recognizes a financial asset or liability when it becomes one party in the financial instrument contract.
Financial asset is derecognized when:
(1) The contractual right to receive the cash flows of the financial assets is terminated;
(2) The financial asset is transferred and meets the following derecognition condition.
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. When partial or all of the current responsibilities attached to such financial liabilities, the partial or all of the financial liabilities are derecognized. When the Group (debtor) and creditor enter into an agreement to replace the existing financial liabilities by undertaking new financial liabilities and the contract terms for the new financial liabilities are essentially different from those for the existing one, the existing financial liabilities will be derecognized and new financial liabilities will be recognized.
Financial asset transactions in regular ways are recognized and de-recognized on the transaction date.
(2) Classification and measurement of financial assets
Financial assets of the Group are categorized as: financial assets measured at fair value with variations accounted into current income account, receivables and financial assets available for sales.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.
Financial assets measured at fair value with variations accounted into current income account
It includes transactional financial assets and financial assets measured by fair value and with variations accounted into current gain/loss account at initial recognition. The financial assets are further measured by fair value with the gain/loss created by variations in fair value and related dividends and interest accounted into the current gain/loss account.
Receivables
Receivables refer to non-derivative financial assets without quotations but with fixed recoverable amount or can be confirmed, including receivable accounts and other receivables (Note V. 10).Receivables adopt the effective interest method and are further measured by amortized cost. Gain/loss generated at final recognition, impairment or amortization is accounted into the current gain/loss account.
Sellable financial assets
Sellable financial asset refers to those sellable non-derivate financial assets recognized initially and financial assets otherthan the above-mentioned types of financial assets. Sellable financial assets are further measured by fair value and the premium/discount is amortized by the effective interest method and recognized as interest income. Other than the exchange difference of impairment loss and foreign exchange monetary financial assets, which is recognized as current gain and loss, the variations in fair value of sellable financial assets is recognized as other comprehensive gain. When it is derecognized and transferred out, it is accounted into the current gain/loss account.Dividends and interest income related to sellable financial assets are accounted into the current gain/loss account.
Equity instrument investment without quotation in an active market and whose fair value cannot be reliably measured and derivative financial assets that are linked to the equity instrument and that need to be settled through delivery of the equity instruments are measured by costs.
(3) Classification and measurement of financial liabilities
TheGroup’s financial liabilities are mainly other financial liabilities
Other financial liabilities adopt the effective interest method and are further measured by amortized cost. Gain/loss generated at final recognition or amortization is accounted into the current gain/loss account.
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. Differences between financial liabilities and equity instruments
Financial liabilities is liabilities that meet one of the following conditions:
(1) contractual obligation to deliver cash or other financial assets to other parties.
(2) under potential adverse conditions, the contractual obligation to exchange financial assets or financial liabilities with other parties.
(3) In the future, a non-derivative instrument contract that can be settled with the company's own equity instruments will be used, and the company will deliver a variable amount of its own equity instruments based on the contract.
(4) Derivatives contracts that may be settled with the company's own equity instruments or may be settled in the future, except for a derivative contract that exchanges a fixed amount of its own equity instruments for a fixed amount of cash or other financial assets. Equity instruments refer to contracts that prove the ownership of acompany’s remaining equity in assets after deducting all liabilities.
If the Group cannot unconditionally avoid the performance of a contractual obligation by delivering cash or other financial assets, the contractual obligation is in line with the definition of a financial liability.
If a financial instrument is required to be settled with or can be settled with the Group's own equity instruments, the Group'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 Group; if it is the latter, the instrument is the equity instrument of the Group.
(4) Derivative financial instruments and embedded derivatives
The Group's derivative financial instruments include futures contracts. It is initially measured at the fair value at the date of signing the derivative transaction contract and is subsequently measured at its fair value. Derivative financial instruments with a positive fair value are recognized as asset, and instruments with a negative fair value are recognized as liabilities. Any gains or losses arising from changes in fair value that do not meet the hedge accounting requirements are directly charged to profit or loss for the current period. For hybrid instruments containing embedded derivatives, if there are no financial assets or financial liabilities that are not designated as measured at fair value and their changes are recorded as profit or loss for the current period, there is no close relationship between the embedded derivatives and the principal contract in terms of economic characteristics and risks with same conditions as embedded derivatives, the separately existing tools are in accordance with the definition of the derivatives, the embedded derivatives are split from the hybrid tools and processed as separate derivative financial instruments. If it is not possible to separately measure the embedded derivative instrument at the time of acquisition or on the subsequent balance sheet date, the entire hybrid instrument is designated as financial asset or financial liabilities that are measured at its fair value and whose changes are recorded as profit or loss for the current period.
(5) Fair value of financial instrument
Fair value is the price that can be obtained from selling an asset or paid for transferring liabilities in an orderly transaction on the measurement date.
The Group measures the related assets or liabilities at fair value, assuming that the orderly sale of assets or transfer of liabilities is
carried out in the main market of the relevant assets or liabilities; if there is no major market, the Group assumes that the transaction
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. is the most advantageous in the relevant assets or liabilities. The major market (or the most advantageous market) is the trading market that the Group can enter on the measurement date. The Group uses assumptions that market participants use to maximize their economic benefits when pricing the asset or liability.
For financial assets or liabilities in an active market, the Group 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.
The Group uses valuation techniques that 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.
For assets and liabilities that are measured or disclosed at fair value in the financial statements, based on the lowest level input value that is of significance to the overall fair value measurement, the level of fair value to which they belong is determined: The input value at the first level can be calculated at the measurement date. Unadjusted quotes for the same assets or liabilities that have been obtained in active markets; input values at the second level are input values that are directly or indirectly observable for the underlying assets or liabilities other than those entered at the first level; Level 3 inputs are Unobservable inputs to related assets or liabilities.
At each balance sheet date, the Group reassesses the assets and liabilities that are continuously measured at fair value and confirmed in the financial statements to determine whether there is a conversion between the fair value measurement levels.
(6) Impairment of financial assets
Financial assets measured at fair value with variations accounted into current income account. The Group checks the book value of financial assets on the balance sheet date. Impairment provision will be made in case of objective evidence proving impairment to the financial assets. Objective evidence proving impairment to the financial assets refers to events actually occur after the initial recognition of financial assets, with influence on the estimated future cash flows of the financial assets and can be reliably measured by the Group.
Objective evidence proving impairment to the financial assets includes the following observable situations:
① Severe financial difficulties in the issuer or debtor;
② The debtor violates the contract or defaults or delays the payment of the interest or principal;
③ The Group makes compromise to the debtor with financial difficulties due to economic or legal consideration;
④ The debtor may go bankruptcy or conduct other financial reorganization;
⑤ The financial assets can no longer be traded in an active market due to material financial difficulties in the issuer;
⑥ It cannot be recognized whether the cash flow of an asset in a group of financial assets has decreased. However, according to open data, it can be evaluated that the estimated future cash flow of the group of financial assets has decreased and the decrease can be measured, including:
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. - The payment capacity of the debtor of the financial assets continues weakening;
- Situations that may lead to the payment failure of the financial assets happen in the country or region where the debtor is located;
⑦ Significant adverse changes occurs to the technical, market, economic or legal environment of the debtor, leading to that the equity instrument investor may not be able to recover the investment;
⑧ Other objective evidence that can prove the impairment of the financial assets
Financial assets measured at amortized cost
If there is objective evidence proving impairment to the financial assets, the book value of the financial assets will be written down to the present value of the estimated future cash flow (excluding undiscovered future credit loss). The write-down amount is accounted into the current gain/loss account. The present value of the estimated future cash flow is determined by the original effective discount rate with the value of the guanrantee considered.
Conduct imparement test separately for major financial assets. If there is objective evidence suggesting impairement, determine the impairment loss and account it into the current gain/loss account. For financial assets with insignificant single amounts, impairment tests are conducted separately or included in the portfolio of financial assets with similar credit risk characteristics. Test financial assets without impairment separately (including major and minor financial assets) and conduct impairment test in the financial assets combination with similar credit risk features. Conduct impairment test for financial assets separately recognized as impaired excluding financial assets combination with similar credit risk features.
After the Group recognizes impair loss to financial assets measured by amortized cost, if there is object evidence suggesting that the value of the financial assets is restored objectively due to an event after the loss, the recognized impairment loss can be reversed and accounted into the current gain/loss account. The book value after the reversal must not exceed the amortized cost of the financial assets on the reversal date assuming that no impairment provision was made.
(7) Transfer of financial assets
The transfer of financial assets refers to transferring or delivering the financial assets to another party (receiver) other than the issuing party of the financial assets.
Recognition of the financial asset is terminated as soon as all of the risks and rewards attached to the financial asset have been transferred to the receiver. Whereas if all of the risks and rewards attached to the financial assets are reserved, recognition of the financial asset shall not be terminated.
When the Group neither transfers nor reserve almost all risks and rewards attached to the financial assets, it will be handled as: When the controlling power over the financial asset is given up, the financial assets will be derecognized and the generated assets and liabilities will be recognized; when the controlling power is not given up, financial asset and related liability shall be recognized according to the extend the Company is involving in the financial asset.
(8) Deduction of financial assets and liabilities
When the Group has the legal right to deduct recognized financial assets and liabilities, can exercise the legal right, and the Group plans to settle them in net, liquidate and repay the financial assets and liabilities, the amount after the deduction will be presented in the balance sheet. Exception for the deducted part, other financial assets and liabilities are separately presented in the balance sheet.
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. 10. Receivables
(1) Receivables with major individual amount and bad debt provision provided individually
|||
|-|-|
||For the current year, the Company recognizes project receivablesover RMB10 million (inclusive) as “individual receivable withlarge amount” while recognizes product receivables over RMB2million (included) as “individual receivable with large amount”and other receivables over RMB1 million (included) as“individual receivable with large amount”.|
|Judging basis or standard of major individual amount||
||The Company performs impairment examination individually oneach large amount receivables, and recognizes impairment and|
|Provision method for account receivable with major individual|provides bad debt provision when the impairment is recognized|
|amount and bad debt provision provided individually|based on objective evidence. Those not impaired are accounted|
||along with the minor amount receivables and recognized in riskgroups.|

(2) Recognition and providing of bad debt provisions on groups
|||
|-|-|
|Group|Method of bad debt provision|
|Account age|Aging method|
|Receivables within consolidation, receivables of real estate||
|property sold with bank mortgage and accounts between the|Other method|
|Company and partners||

Receivables adopting the aging method in the group:
√ Applicable□ Inapplicable
|||||||||
|-|-|-|-|-|-|-|-|
||Age||Providing rate for receivable account||||Providing rate|
|||||Real estate|Others||for other|
|||Engineering||||||
||||||||receivables|
|Within 1 year (inclusive)||1.00%||1.00%|3.00%|3.00%||
|1-2 years||5.00%||5.00%|10.00%|10.00%||
|2-3 years||20.00%||10.00%|30.00%|30.00%||
|3-4 years||30.00%||30.00%|50.00%|50.00%||
|4-5 years||50.00%||50.00%|80.00%|80.00%||
|Over 5 years||100.00%||100.00%|100.00%|100.00%||

 Receivables adopting the balance percentage method in the group
□ Applicable√ Inapplicable
Receivables adopting other methods in the group
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.□ Applicable√ Inapplicable
(3) Receivables with not major individual amount and bad debt provision provided individually
|||
|-|-|
|Reasons for separate bad debt provision|Long account age or deterioration of customer creditability|
||According to the difference between the present value of future|
|Method of bad debt provision||
||cash flow and the book value|

The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure Guideline No.6– Listed Companies Engaged in Decoration Business.
11. Inventories
Whether the Company needs to comply with disclosure requirements of special industries
Yes
Decoration
(1) Classification of inventories
TheGroup’s inventories include purchased materials, raw materials, low-value consumables, packing materials, OEM materials, products in process, semi-finished goods, finished goods, inventory, development costs, development products and construction in process.
(2) Pricing of delivering inventory
Inventories are measured at cost when procured. Raw materials, products in process, commodity stocks in transit and sel-made semi-finished products are measured by the weighted average method.
Construction contracts are measured by the effective cost, including direct and indirect expenses generated before the contracts are fulfilled. Costs generated and recognized accumulatively by construction in process and settled payment are listed in the balance sheet as offset net amounts.The excessive part of the sum of the generated costs and recognized gross profit (loss) over the settled payment is listed inventories; the excessive part of the settled payment over the sum of the generated costs and recognized gross profit (loss) is listed as the prepayment received.
Travel and bidding expenses generated by execution of contracts, if they can be separated and reliably measured and it is likely to enter into contracts, are accounted as the contract cost when the contracts are entered into; or into the current gain/loss account if the conditions are not met.
The development costs 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 actual costs of the development product is priced using the separate pricing method.
(3) Recognition of inventory realizable value and providing of impairment provision
The realizable net value of inventory is the estimated sales prices of the inventory less costs to be incurred until the completion,
estimated sales expense and taxes. 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.
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. If the inventory cost is higher than the realizable net value on the balance sheet date, the inventory depreciation provision should be made. The Group makes inventory depreciation provision for separate or a type of inventory. If factors affecting the inventory value disappear on the balance sheet date, the depreciation provision made should be reversed to the original value.
(4) Inventory system
The Group uses perpetual inventory system.
(5) Amortizing of low-value consumables and packaging materials
Low-value consumables are amortized on on-off amortization basis at using.
12. 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) Recognition of initial investment costs
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 mergedparty’s owner in the consolidate financial statements on the merger date is the investment costs; for long-term equity investment obtained by merger of enterprises not under common control, the merger cost is the investment cost.
For long-term equity investment obtained by cash, the actually paid consideration is the initial investment cost.
(2) Subsequent measurement and recognition of gain/loss
Investments by the Company in subsidiaries are calculated using the cost method; in joint ventures are calculated using the equity method.
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.
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 theowner’s equity except for net profit and loss, other misc income and profit distribution of the invested entity, adjust the book value of the long-term equity investment and record it in the capital surplus (other capital surplus). When the share of the net gains that can be enjoyed is recognized, it is recognized after the net profit of the invested entity is adjusted based on the fair value of the recognizeable assets of the invested entity according to the Company's accounting policies and accounting period.
2018 Interm Financial Report 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. The difference between the fair value and book value of the original equity on the conversion date and the accumulative change in the fair value originally accounted in other misc. income should be transferred into the profit and loss of the current period using the equity method.
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.
Where the disposal of part of the equity investment leads to loss of control on the invested entity, and the remaining equity after the disposal can impose common control or significant impacts on the invested entity, use the equity method and make adjustment as if the equity method was used when the remaining equity was acquired. If not, perform accounting treatment according to provisions in the Enterprise Accounting Standard No.22– Recognition and Measurement of Financial Tools. The difference between the fair value and book value on the date of losing control should be transferred into the profit and loss of this period.
Where theCompany’s shareholding decreases and the Company loses the control due to increased investment by another investor, but the Company can still impose common control or significant impacts on the invested entity, the share of increased net assets of the invested entity that can be shared by the Company should be calculated based on the new shareholding, the difference between the net assets and original book value of the original long-term equity investment should be recorded in the profit and loss of this period and adjusted as if equity method was used when it was acquired according to the new shareholding proportion.
Internal transaction gain not realized between the Company and affiliates is measured according to the shareholding proportion and the investment gains is recoginzied after deduction. The unrealized internal transaction loss between the Company and the invested entity is the impairment loss of transferred assets and should not be written off.
(3) Basis for recognition of major influence on invested entities
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.
When Company directly or indirectly holds20% (inclusive) but less than50% of the shares with voting rights of the invested entity, it is generally considered that the Company can impose significant impacts unless there is clear evidence proving that the Company shall not participate in the production and business decision making of the company; when the Company holds less than20% of the shares with voting rights, it is generally not considered that the Company has significant impacts on the invested entity, unless there is clear evidence proving the contrary.
(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.
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. Equity investments classified as held for sale to associates that are no longer eligible to hold classified assets for sale are retrospectively adjusted using the equity method starting from the date that they are classified as held for sale.
(5) Impairment examination and providing of impairment provision
See Note V. 18 for the assets impairment provision method for investment in subsidiaries and joint ventures.
13. Investment real estates
Measuring mode of investment real estate
Measurement at fair value
Basis of choosing the measurement at fair value
For investment real estates with an active real estate transaction market and the Group can obtain market price and other information of same or similar real estates to reasonably estimate the investment realestates’ fair value, the Group will use the fair value mode to measure the investment real estates subsequently. Variations in fair value are accounted into the current gain/loss account.
The fair value of investment real estate is determined with reference to the current market prices of same or similar real estates in active markets; when no such price is available, with reference to the recent transaction prices and consideration of factors including transaction background, date and district to reasonably estimate the fair value; or based on the estimated lease gains and present value of related cash flows.
For investment real estate under construction (including investment real estate under construction for the first time), if the fair value cannot be reliably determined but the expected fair value of the real estate after completion is continuously and reliably obtained, the investment real estate under construction is measured by cost. When the fair value can be measured reliably or after completion (the earlier one), it is measured at fair value. For an investment real estate whose fair value is proven unable to be obtained continuously and reliably by objective evidence, the real estate will be measured at cost basis until it is disposed and no residual value remains as assumed.
The difference of the proceeds from sales, transfer, retirement or destruction of investment real estates with book value and related taxes deducted is accounted into the current gain/loss account.
Investment real estate that use the cost method for further measurement adopt the straight-line depreciation provision method. See Note V. 18 for the provision method.
14. Fixed assets
(1) Recognition conditions
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing services, lease or for operation& management, and have more than one accounting year of service life.The fixed assets can only be recognized hen economic interests related to the fixed assets are very likely to flow into the company and the costs of the fixed assets can be reliably measured. The Group measures fixed assets at the actual costs when the fixed assets are obtained
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. (2) Depreciation method
||||||
|-|-|-|-|-|
|||||Annual depreciation|
|Type|(2) Depreciation method|Service year|Residual rate||
|||||rate %|
|Houses & buildings|Average age|35-45|10%|2%-2.57%|
|Mechanical equipment|Average age|10|10%|9%|
|Transportation facilities|Average age|5|10%|18%|
|Electronics and other|||||
||Average age|5|10%|18%|
|devices|||||
|PV power plants|Average age|20|5%|4.75%|

15. Construction in process
The Group recognizes the cost of construction in process according to the actual construction expense, including necessary engineering expenses, borrowing costs to be capitalized before the engineering reaches the preset service condition and other related costs.
Construction in process will be transferred to fixed assets when it reaches the preset service condition.
See Note V. 18 for the provision method for construction in process.
16. Borrowing expenses
(1) Recognition principles for capitalization of borrowing expenses
Borrowing expenses occurred to the Group that can be accounted as purchasing or production of asset satisfying the conditions of capitalizing, are capitalized and accounted as cost of related asset.Borrowing expenses start to be capitalized when all of the followings are satisfied:
(1) Asset expense has already occurred. Asset expenses include cash payment, non-cash asset transferring, or undertaking of debt with interest done for purchasing or producing of assets;
(2) The borrowing expense has already occurred;
(3) Purchasing or production activity, which is necessary for the asset to reach the useful status, has already started.
(2) During borrowing expense capitalization
When the asset satisfying the capitalizing conditions has reached its usable or sellable status, capitalizing of borrowing expenses shall be terminated. Borrowing expenses incurred after assets that meet capitalization conditions reach the service or sales conditions are accounted into the current gain/loss account according to the actual amounts.
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.
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. (3) Calculation of the capitalization amount of borrowing expense
Interest expenses generated by special borrowings less the interests income obtained from the deposit of unused borrowings or investment gains from temporary investment is capitalized; the capitalization amount for general borrowing is determined based on the capitalization rate which is the exceeding part of the accumulative assets expense over weighted average of the assets expense of the special borrowing/used general borrowing. The capitalization ratio is the weighted average interest rate of general borrowings. In the capitalization period, the exchange difference of special borrowings in foreign currencies should be fully capitalized. The exchange difference should be recorded in the profit and loss of this period.
17. Intangible assets
(1) Pricing method, service life and depreciation test
TheGroup’s intangible assets include land using rights, trademarks, patent, special technologies, and software.
Intangible assets are initially measured at costs and the useful life will be determined when obtained. Where the useful life is limited, the intangible assets will be amortized within the predicted useful life by using the amortization method that can reflect predicted realization way of the economic benefit of the assets; whether the realization way cannot be reliably confirmed, use the straight-line method. If the useful life is uncertain, the intangible assets are not amortized.
Intangible assets with limited useful life are amortized as followings:
||||
|-|-|-|
|Type|Useful life|Basis of amortization|
|Land using right|Beneficial age|Average age|
|Trademarks and patents|10|Average age|
|Proprietary technology|10|Average age|
|Software|5, 10 years|Average age|

 At the end of each year, the Group will reexamine the useful life and amortization basis of intangible assets with limited useful life. If they change, adjust the prediction and handle it according to accounting estimate changes.
On the balance sheet day, if the intangible assets become unlikely to bring future economic benefits for the Group, transfer all the intangibleassets’ book value into the current gain/loss account.
See Note V. 18 for the impairment provision method for intangible assets.
(2) Accounting policies for internalR&D expenses
The Group divides internalR&D project expenses into research and development expenses.
The research expenses are accounted the current gain/loss account.
Development expenses can only be capitalized when the following conditions are satisfied: the technology is feasible for use or sales;
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. there is the intention to use or sell the intangible assets; it can be proven that the product generated by the intangible assets is demanded or the intangible assets in demanded; if the intangible is used internally, it can be proven that it is useful; with necessary technical and financial resources and other resources to complete the development of the intangible assets and the intangible assets can be used or sold; the development expense can be reliably measured. If not, the development expense is accounted into the current gain/loss account.
If a research project meets the above-mentioned conditions and passes the technical and economic feasibility study, the project will enter the development stage.
Expenses in the development stage capitalized are listed as development expense on the balance sheet and transferred to intangible assets when the project reaches the useful condition.
18. Assets impairment
The Group uses the cost mode to continue measuring the assets impairment to investment real estatement, 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 Group judges whether there is a sign of impairment to assets on the balance sheet day. If such sign exists, the Group 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 Group 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 Group 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 Group.
When the impairment test is conducted, if there is sign of impairment to the asset group or combination of asset groups related to goodwill, first perform impair test for asset group or combination of asset groups without goodwill and calculate the recoverable amount and recognize the related impairment loss. Then conduct impairment test on those with goodwill, compare the book value with recoverable amount. If the recoverable amount is lower than the book value, recognize the impairment loss of the goodwill. Once recognized, the asset impairment loss cannot be written back in subsequent accounting period.
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. 19. Long-term amortizable expenses
TheGroup’s long-term amortizable expenses are measured at the actual costs and amortized averagely based on the beneficial term. For long-term amortizable expenses that are not beneficial in the subsequent account periods, the residual value is fully accounted into the current gain/loss account.
20. Staff remuneration
(1) Accounting of operational leasing
The Group pays for the medical insurance, job injury insurance and breeding insurance and housing fund according toemployees’ wages and bonus and recognizes them as liabilities, which are recorded into the profit and loss or related assets costs in the current period. If the liabilities cannot be fully paid within 12 months upon the end of the report period in which the employees provide service, and the financial impacts are substantial, the liabilities should be measured at the discounted amount.
(2) Accounting of post-employment welfare
The post-employment welfare of the Group is a defined plan, which means that the Company does not need to assume any responsibility after making fixed contribution to an independent fund. The defined plan includes basic pension and unemployment insurance. The contribution of the plan is recognized as liabilities and recorded in the profit and loss of this period or related assets costs.
(3) Accounting of dismiss welfare
Where the Group provides dismiss welfare for employees, the staff remuneration liabilities is recognized on the earlier one of the following two date: when the Group cannot cancel the dismiss welfare provided for termination of employment or layoff; when the Group recognizes the costs or expenses of reorganization related to the payment of dismiss welfare.
21. Anticipated liabilities
When responsibilities occurred in connection to contingent issues, and all of the following conditions are satisfied, they are recognized as expectable liability in the balance sheet:
(1) This responsibility is a current responsibility undertaken by the Group;
(2) Execution of this responsibility may cause financial benefit outflow from the Group;
(3) Amount of the liability can be reliably measured.
Expected liabilities are initially measured at the best estimation on the expenses to exercise the current responsibility. The book value of expected liability is revised at balance sheet day, and adjustment will be made to reflect current best estimation.
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. 22. Revenue
Whether the Company needs to comply with disclosure requirements of special industries
Yes
Decoration
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure Guideline No.6– Listed Companies Engaged in Decoration Business.
(1) General principles
1. Sales of goods
When all of the following conditions are satisfied, the sales of goods are recognized as sales income according to the contract amount received or receivable from the buyer: (1) Main risks and rewards attached to the ownership of the goods have been transferred to the buyer; (2) No succeeding power of administration or effective control is reserved which are usually attached to ownership; (3) Amount received can be reliably measured; (4) Related financial benefit may inflow to the Company; (5) Relative costs, occurred or will occur, can be reliably measured.
2. Providing of labor service
If they are not in the same year, then use the estimation on percentage basis when it is possible.
The completion percentage is the costs occurred on the total cost.
The reliable estimation of the result of providing of labor service must meet the following conditions: A. the revenue can be reliably measured; B. the economic benefit is very likely to flow into the company; C. the completion can be determined reliably; D. costs incurred or will be incurred can be reliably measured.
If the result cannot be reliably estimated, use the service cost amount of the compensation obtained or will be obtained to recognize the revenue of the providing of labor service and recognize the incurred laber service cost as the current expense. If no compensation can be obtained for incurred labor service cost, no revenue can be recognized.
3. Demising of asset using rights
The revenue is recognized when the financial benefit in connection with the demising of asset using right was received and the amount can be reliably measured.
4. Construction contracts
On the balance sheet day, the Group recognizes the contract income and costs using the completion percentage method if the result of the construction contract can be reliably estimated. If not, such contracts are treated differently. If the contract cost can be recovered, the revenue is recognized according to the actual contract costs that can be recovered and the contract cost is recognized as the current expense; if not, the contract cost is recognized as the current expense and no revenue is recognized.
If the estimated total costs exceed the total revenue, the Group recognizes the estimated loss as the current expense.
The competition percentage is determined by the share of the costs incurred in the total cost.
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. The reliable estimation of the result of a construction contract must meet the following conditions: A. the revenue can be reliably measured; B. the economic benefit is very likely to flow into the company; C. the completion cost can be clearly distinguished and determined reliably; D. the completion and costs that will be incurred for completion of the contract can be reliably recognized. (2) Specific revenue recognition method
① Construction contracts
Metro screen door projects of the Company and Shenzhen Fangda Automatic System, and curtain wall project of Fangda Jianke are individual construction contracts. They are accounted by the following means:
Construction contracts completed within a fiscal year are recognized for their income and cost upon completion.
Income and expenses of the construction contracts carried over-year are recognized on percentage basis at balance sheet day when all of the following conditions are satisfied: contract income can be reliably measured, relative financial benefit can inflow to the Company; progress of the project and costs to complete the contract can be reliably recognized; cost occurred to complete the contract can be clearly distinguished and reliably measured, which enables comparing of actual cost with predicted cost.
Contract costs are direct and indirect expenses occurred since the date when the contract is engaged till the completion day. The competition percentage is determined by the share of the costs incurred in the total cost.
Construction contracts completed in current term are recognized for income according to the actual total income of the contract less income recognized in previous terms; meanwhile, the total costs of the contract less costs recognized in previous terms are recognized as current contract costs. If the total contract cost is predicted to be greater than the predicted total income, the predicted loss shall be recognized as current cost instantly.
Parts of the curtain wall project under Fangda Jianke are outsourced, and administrative fees are collected at the agreed rate. For these construction contracts, income will be recognized when ongoing payment for the project is received and corresponding costs are transferred.
② Sales product
Revenue of products for domestic sales is recognized when the Group delivers the products and receives the sales payment or obtains the payment voucher; revenue for products for overseas sales is recognized at departure of the products.
③ Real estate sales
Income from real estate sales is recognized when the contract is signed and performed, project is developed and completed with the record for the completion acceptance, the handover procedure is completed or property is deemed accepted by the customer as per the property sales contract, the payment is received or it is believed that the payment can be received, and the cost can be measured reliably.
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. 23. Government subsidy
(1) Judgment basis and accounting treatment of assets-related government subsidy
Government subsidy is only recognized when the required conditions are met and the subsidy is received.
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.
Government subsidies related to assets are obtained by the Group to purchase, build or formulate in other manners long-term assets; or subsidies related to benefits.
For subsidies that can formulate long-term assets without clear government regulations, the part of the subsidies corresponding to the asset value will be measured as assets-related government subsidies, while the rest of them will be measured as benefit-related government subsidies. Where it is difficult to distinguish them from each them, the whole subsidies will be measured as benefit-related government subsidies.
If the asset-related government subsidy is recognized as deferred gain, should be recorded in gain and loss in the service life. (2) Judgment basis and accounting treatment of return-related government subsidy
If a government subsidy related to income is used to compensate for related costs or losses that have occurred, it shall be included in the current profit or loss or write-down related costs; if it is used to compensate for the related costs or losses in the subsequent period, it shall be included in the deferred income. During the period in which the related cost, expense or loss is recognized, it is included in the current profit or loss or the relevant cost is written off. Government subsidy measured at the nominal amount is accounted into current income account.The Group adopts a consistent approach to the same or similar government subsidies. 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.
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. 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.
24. Differed income tax assets and differed income tax liabilities
Income tax includes current and deferred income taxExcept for the adjustment goodwill generated by mergers or deferred income tax related to transactions or events directly accounted into theowners’ equity, income tax is accounted as income tax expense into the
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. current gain/loss account.
The Group 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.
The taxable temporary difference recognizes the related deferred income tax liabilities, unless the taxable temporary difference is created by the following transactions:
(1) Initial recognition of goodwill, or of assets or liabilities generated in transactions with the following features: the transaction is not a merger and the transaction does not affect the accounting profit or taxable proceeds;
(2) For taxable temporary difference related to investment in subsudiaries and affiliates, the reversal timing for the temporary difference can be controlled and the difference is unlikely to be reversed in the foreseeable future.
For deductible temporary difference, deductible loss and tax deduction that can be accounted in subsequent years, the Group recognizes the incurred deferred income tax assets to the extent to the future income tax proceeds that is very likely to be received for deducting deductible temporary difference, deductible loss and tax deduction, unless the deductible temporary difference is generated in following transactions:
(1) the transaction is not a merger and the transaction does not affect the accounting profit or taxable proceeds;
(2) for the taxable temporary difference related to investment in subsidiaries and affiliates, the corresponding deferred income tax assets are recognized when the following condition is met: the temporary difference is very likely to be reversed in the foreseeable future and it is very likely to receive the taxable proceeds that can be used to deduct the deductible temporary difference.
On the balance sheet day, the Group measures the deferred income tax assets and liabilities with the tax rate applicable during the predicted period during which the assets are recovered or the liabilities are paid off and reflects the income tax influence of the assets recovery and liabilities repayment way on the balance sheet day.
On the balance sheet day, the Group re-exmaines the book value of the deferred income tax assets. If it is unlikely to have adequate taxable proceeds to reduct the benefits of the deferred income tax assets, less the deferred income taxassets’ book value. When there is adequate taxable proceeds, the lessened amount will be reversed.
25. Leasing
(1) Accounting of operational leasing
The Group transfers all the risks and rewards attached to the asset at substantially transferred to the lessee, it is recognized as financial leasing, and the others are operational leasing. The Group's lease forms are mainly operating leases.
(1) The Group is the leasor
Rentals from operational leasing are recognized as current gains on straight basis to the periods of leasing. Initial direct expenses are recorded to current income account.
(2) The Group is the leasee
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. Rentals in operational leasing are recorded to relative capital cost or current income account on straight basis to the periods of leasing. Initial direct expenses are recorded to current income account.
26. Other significant accounting policies and estimates
The Group continuously reviews significant accounting judgment and estimate adopted for the reasonable forecast of future events based on its historical experience and other factors.
Significant accounting judgment and assumptions that may lead to major adjustment of the book value of assets and liabilities in the next accounting year are listed as follows:
(1) Goodwill impairment
The Group judges whether there is impairment to goodwill at least annually. This required valuation of the use value of the asset groups with goodwill. While estimating the use value, the Group needs to estimate the cash flow from the asset group in the future and choose the proper discount rate to calculate the present value of the future cash flow.
(2) Estimate of fair value
The Group uses fair value to measure investment real estate and needs to estimate the fair value of investment real estate at least quarterly. This requires the management to reasonably estimate the fair value of the investment real estate with the helf of valuation experts.
(3) 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.
(4) Construction contracts
The Group recognizes income based on the completion of individual construction contract. The management determines the completion percentage based on the actual cost in the total budget and forecasts the contract income. The starting and completion dates of construction contracts fall in different account periods. The Group will review and adjust contract income and cost estimation in budgets (if the actual contract income is less than the estimate or actual contract cost, contract estimation loss provision will be made).
(5) 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.
(6) Accounting of hedging
When the hedge relationship begins, the Group specifies the hedge relationship in writing to specify the follow: risks management target and hedging strategy; nature of the hedged item and quantity; nature and quantity of hedging instruments, nature and identification of hedged risks; evaluation of the hedging effectiveness, including the economic relationship between the hedged item and hedging instrument, hedging ratio, analysis of the hedging ineffectiveness source; the beginning date of the specified hedging
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. relationship.
Cash flow hedging
During the existence of the hedging relationship, the part of the cumulative gain or loss of the hedging instrument within the change to the current value of the cumulative cash flow of the hedged item is included into other misc. incomes. The part that is lower or larger than the cash flow change is included into the gain or loss of the current period.
When the hedging relationship ends and related inventory is recognized, the hedging instrument gain or loss recognized in “Other misc. income hedging reserve” will be transferred to “Raw materials”.
27. Major changes in accounting policies and estimates
(1) Changes in accounting policies
□ Applicable√ Inapplicable
(2) Changes in major accounting estimates
□ Applicable√ Inapplicable
28. Others
VI. Taxation
1. Major taxes and tax rates
||||
|-|-|-|
|Tax|Tax basis|Tax rate|
|VAT|Taxable income|3%、5%、6%、11%、13%、17%|
|City maintenance and construction tax|Taxable turnover|1%、5%、7%|
|Enterprise income tax|Taxable turnover|See the following table|
|Education surtax|Taxable turnover|3%|
|Local education surtax|Taxable turnover|2%|

Tax rates applicable for different tax payers
|||
|-|-|
|Tax payer|Income tax rate|
|The Company|25%|
|Shenzhen Fangda Jianke Co., Ltd. (hereinafter Fangda Jianke)|15%|
|Shenzhen Fangda Automatic System Co., Ltd. (hereinafter||
||15%|
|Fangda Automatic)||
|Fangda New Material (Jiangxi) Co., Ltd. (hereinafter Fangda||
||15%|
|New Material)||

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
|||
|-|-|
|Dongguan Fangda New Material Co., Ltd. (hereinafter||
||15%|
|Dongguan New Material)||
|Shenzhen Kexunda Software Co., Ltd. (hereinafter Kexunda)|25%|
|Chengdu Fangda Construction Technology Co., Ltd. (hereinafter||
||15%|
|Chengdu Fangda)||
|Fangda Decoration Engineering (Shenyang) Co., Ltd.||
||25%|
|(hereinafter Shenyang Decoration)||
|Shenzhen Fangda Property Development Co., Ltd. (hereinafter||
||25%|
|Fangda Property Development)||
|Shenzhen Fangda New Energy Co., Ltd. (hereinafter Fangda||
||25%|
|New Energy)||
|Shenzhen Fangda Property Development Co., Ltd. (hereinafter||
||25%|
|Fangda Property Development)||
|Jiangxi Fangda Property Development Co., Ltd. (hereinafter||
||25%|
|Jiangxi Property Development)||
|Pingxiang Fangda Luxin New Energy Co., Ltd. (hereinafter||
||25%|
|Luxin New Energy)||
|Pingxiang Xiangdong Fangda New Energy Co., Ltd. (hereinafter||
||25%|
|Xiangdong New Energy)||
|Nanchang Xinjian Fangda New Energy Co., Ltd. (hereinafter||
||25%|
|Xinjian New Energy)||
|Dongguan Fangda New Energy Co., Ltd. (hereinafter Dongguan||
||25%|
|New Energy)||
|Shenzhen QIanhai Kechuangyuan Software Co., Lt.d (hereinafter||
||15%|
|Kechuangyuan Software)||
|Fangda Automatic (Hong Kong) Co., Ltd. (hereinafter||
||16.50%|
|Automation Hong Kong)||
|Shihui International Holding Co., Ltd. (hereinafter Shihui||
||16.50%|
|International)||
|Shenzhen Hongjun Investment Co., Ltd.|25%|
|Fangda Australia Pty Ltd (hereinafter Jianke Australia)|30%|
|Shanghai Fangda Jingling Technology Co., Ltd. (hereinafter||
||25%|
|Jingling Technology)||
|Shenzhen Fangda Cloud Rail Technology Co., Ltd. (hereinafter||
||25%|
|Fangda Cloud Rail)||

2. Tax preference
(1) According to the Certification of High-tech Enterprise issued by Shenzhen Commission of Technological Innovation, Shenzhen
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. Commission of Finance, Shenzhen National Tax Bureau, and Shenzhen Local Tax Bureau on 19.06.15, Fangda Jianke was entitled to enjoy a tax preference of enterprise income tax of15% for three years (2015-2017) since the qualifications were awarded.
(2) According to the Certification of High-tech Enterprise issued by Shenzhen Commission of Technological Innovation, Shenzhen Commission of Finance, Shenzhen National Tax Bureau, and Shenzhen Local Tax Bureau on 19.06.15, Fangda Decoration was entitled to enjoy a tax preference of enterprise income tax of15% for three years (2015-2017) since the qualifications were awarded. (3) According to the Certification of High-tech Enterprise issued by Jiangxi Ministry of Science and Technology, Jiangxi Ministry of Finance, Jiangxi National Tax Bureau, and Jiangxi Local Tax Bureau on 25.09.15, Fangda New Material was entitled to enjoy a tax preference of enterprise income tax of15% for three years (2015-2017) since the qualifications were awarded.
(4) On December 25, 2013, Kexunda was certified by Shenzhen Nanshan National Tax Bureau as a software and integrated circuit designer according to the Shenzhen National Tax Reduction Registration[2013] No.739 and will enjoy exemption from the enterprise income tax for two years and50% reduction of the same tax for another three years from the year that the company starts making a net profit. Kexunda started making profits in 2013 and therefore starts to enjoy the exemption. Kexunda entered the semi-exemption period in 2015.
(5) On November 7, 2014, Chengdu Fangda was certified by Sichuan Xinjin National Tax Bureau as an encourage industry company in the west China (Xin Jin National Tax Doc.[zzy024]) and started to enjoy a tax rate of15%.
(6) On 02.11.15, Dongguan New Energy was certified by Dongguan National Tax Bureau Songshanhu branch as the national supported public infrastructure project according to the Song Shan Hu Tax Doc[2015] 3305. The company is exempted from enterprise income tax for three years and halfly exempted for another three years. In 2015, the company entered the exemption period.
(7) On 02.03.16, according to the document issued by Luxi National Tax Bureau, the PV power generation project undertaken by Pingxiang Fangda Luxin New Energy Co., Ltd, became the infrastructure project supported by the central government. The company enjoys a three-year enterprise income tax relief and50% reduction for another three years. In 2016, the company entered the exemption period.
(8) On 02.06.16, according to the document issued by Nanchang Xinjian District National Tax Bureau, the PV power generation project undertaken by subsidiary Xinjian New Energy Company, became the infrastructure project supported by the central government. The company enjoys a three-year enterprise income tax relief and50% reduction for another three years. In 2016, the company entered the exemption period.
(9) On 10.03.17, according to the registration to Shenzhen National Tax Bureau, subsidiary Kechuangyuan Software became a newly established software and integrated circuit designing company and can enjoy the two-year full exemption and three-year half-exemption of the enterprise income tax from the first year that the company records profit. Kexunda started making profits in 2016 and therefore starts to enjoy the exemption.
(10) According to the Certification of High-tech Enterprise issued by Guangdong Ministry of Science and Technology, Guangdong Ministry of Finance, Guangdong National Tax Bureau, and Guangdong Local Tax Bureau on 25.09.15, Dongguan New Material was entitled to enjoy a tax preference of enterprise income tax of15% for three years (2016-2018) since the qualifications were awarded.
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. 3. Others
VII. Notes to the consolidated financial statements
1. Monetary capital
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Inventory cash:|205,631.16|42,636.09|
|Bank deposits|953,083,087.78|923,163,199.39|
|Other monetary capital|245,906,456.78|257,192,644.03|
|Total|1,199,195,175.72|1,180,398,479.51|
|Including: total amount deposited in|||
||22,824,218.99|24,527,445.09|
|overseas|||

Other note
The closing balance of the book value of the other monetary capital RMB245,906,456.78 is mainly the futures, bank acceptance bill and guarantee deposit and investment, including a deposit of RMB157,258,170.83. The deposit and frozen deposit shall not be treated as cash and cash equivalent in the preparation of cash flow statements.
2. Financial assets measured at fair value with variations accounted into current income account
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Transactional financial assets|191,425,156.75||
|Others|191,425,156.75||
|Total|191,425,156.75||

Others:
3. Derivative financial assets
√ Applicable□ Inapplicable
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|

Others:
4. Notes receivable
(1) Classification of notes receivable
In RMB
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Bank acceptance|7,523,015.29|12,376,780.96|
|Commercial acceptance|53,673,056.21|27,259,656.24|
|Total|61,196,071.50|39,636,437.20|

 (2) Pledged notes receivable at the end of period
In RMB
|||
|-|-|
|Item|Amount pledged at the end of the period|

(3) 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|15,498,361.56||
|Commercial acceptance|16,605,812.05||
|Total|32,104,173.61||

(4) Notes transferred to accounts receivable due to default of the issue at the end of period
In RMB
|||
|-|-|
||Amount transferred to accounts receivable at the end of the|
|Item||
||period|
|Commercial acceptance|5,960,429.45|
|Total|5,960,429.45|

 Other note
There is no objective evidence that theGroup’s bills receivable are impaired and no provision for impairment of bills receivable has been accrued.
Bank acceptance bills used for endorsement or discounting are accepted by banks with higher credit ratings, the risk of credit risk and deferred payment is small, and the interest rate risk related to the bills has been transferred to banks, and the main risks and rewards on the ownership of the bills can be judged Transfer, so the termination of confirmation.
5. Account receivable
(1) Account receivable disclosed by categories
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Type|||||||
||Remaining book|Bad debt provision|Book|Remaining book|Bad debt provision|Book value|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||value||||value|value|||||
|||Proportio||Provisionrate|||Proportio||Provision||
||Amount||Amount|||Amount||Amount|||
|||n|||||n||rate||
|Recognition and||||9.44%||2,123,2|||||
||2,294,28||216,669,||2,077,617|||202,895,9||1,920,372,4|
|providing of bad debt||100.00%||||68,342.|99.38%||9.56%||
||7,487.96||596.18||,891.78|||16.62||26.16|
|provisions on groups||||||78|||||
|Account receivable|||||||||||
|with minor individual|||||||||||
|||||||13,339,||13,339,65|||
|amount and bad debt|||||||0.62%||100.00%||
|||||||659.73||9.73|||
|provision provided|||||||||||
|individually|||||||||||
|||||9.44%|2,077,617,891.78|2,136,6||||1,920,372,426.16|
||2,294,28||216,669,|||||216,235,5|||
|Total||100.00%||||08,002.|100.00%||10.12%||
||7,487.96||596.18|||||76.35|||
|||||||51|||||

Account receivable with major individual amount and bad debt provision provided individually at the end of the period:
□ Applicable√ Inapplicable
In the group, the account receivable of which bad debt provision is made through the account aging method:
√ Applicable□ Inapplicable
In RMB
|||||
|-|-|-|-|
||Closing balance|||
|Age||||
||Account receivable|Bad debt provision|Provision rate|
|Sub-item of within 1 year||||
|Less than 1 year|1,092,290,646.04|12,759,334.43|1.17%|
|Subtotal for less than 1 year|1,092,290,646.04|12,759,334.43|1.17%|
|1-2 years|586,537,239.34|30,369,736.28|5.18%|
|2-3 years|264,556,651.96|53,133,954.73|20.08%|
|3-4 years|139,874,662.96|42,358,884.51|30.28%|
|4-5 years|90,239,490.16|45,148,888.27|50.03%|
|Over 5 years|32,898,797.96|32,898,797.96|100.00%|
|Total|2,206,397,488.42|216,669,596.18|9.82%|

 Group recognition basis:
The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure Guideline No.6– Listed Companies Engaged in Decoration Business.
Account receivable adopting the balance percentage method in the group
□ Applicable√ Inapplicable
Account receivable adopting other methods in the group:
At the end of the period, the balance of receivables from the real estate properties sold by bank mortgage payment was
RMB87,889,999.54. Because the risk of bad debts was extremely small, no provision for bad debts was made.
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. (2) Bad debt provision made, returned or recovered in the period
A bad debt provision of RMB434,019.83 was made in the period. RMB was recovered or reversed.
Including significant recovery or reversal:
In RMB
||||
|-|-|-|
|Entity|Written-back or recovered amount|Method|

(3) Written-off account receivable during the period
In RMB
|||
|-|-|
|Item|Amount|

Including significant account receivable:
In RMB
|||||||
|-|-|-|-|-|-|
|||||Writing-off||
|Entity|Nature|Amount|Reason||Related transaction|
|||||procedure||

Notes to written-off account receivable
(4) Balance of top 5 accounts receivable at the end of the period
The total balance of top-five accounts receivable at the end of the period is RMB388,541,008.96, accounting for16.94% of the total remaining balance of all accounts receivable. The bad debt provision made at the end of the period is RMB22,169,321.40.
6. Prepayment
(1) Account age of prepayments
In RMB
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Age|||||
||Amount|Proportion|Amount|Proportion|
|Less than 1 year|17,693,649.27|40.33%|45,346,974.64|82.93%|
|1-2 years|24,240,634.11|55.25%|7,891,890.96|14.43%|
|2-3 years|963,268.28|2.20%|679,375.39|1.24%|
|Over 3 years|973,962.43|2.22%|762,028.85|1.40%|
|Total|43,871,514.09|--|54,680,269.84|--|

Explanation of non-settlement of significant prepayments with an accounting age of more than 1 year:
(2) Balance of top 5 prepayments at the end of the period
The total balance of top-five prepayments at the end of the period is RMB39,226,457.29, accounting for89.41% of the total
remaining balance of all accounts receivable. The bad debt provision made at the end of the period is RMB0.
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. Others:
7. Receivable interest
(1) Receivable interest
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Bank financial products|2,374,520.56|3,829,315.07|
|Total|2,374,520.56|3,829,315.07|

 8. Other receivables
(1) Other receivables disclosed by categories
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
||Remaining book|||||Remaining book|||||
||||Bad debt provision|||||Bad debt provision|||
|Type|value||||Book|value|||||
|||||||||||Book value|
|||Proportio||Provision|value||Proportio||Provision||
||Amount||Amount|||Amount||Amount|||
|||n||rate|||n||rate||
|Other receivables|||||||||||
|with major individual|||||||||||
||69,340,5||69,340,5|||69,380,||69,380,54|||
|amount and bad debt||40.30%||100.00%|0.00||48.04%||100.00%||
||48.52||48.52|||548.52||8.52|||
|provision provided|||||||||||
|individually|||||||||||
|(2) Recognition and|||||||||||
||102,631,||19,336,0||83,295,63|74,563,||17,681,77||56,881,959.|
|providing of bad debt||59.64%||18.84%|||51.62%||23.71%||
||665.60||30.91||4.69|729.50||0.19||31|
|provisions on groups|||||||||||
|Other receivables|||||||||||
|with minor individual|||||||||||
||108,976.||108,976.|||495,772||302,374.3|||
|amount and bad debt||0.06%||100.00%|0.00||0.34%||60.99%|193,398.31|
||00||00|||.63||2|||
|provision provided|||||||||||
|individually|||||||||||
||172,081,||88,785,5||83,295,634.69|144,440||87,364,69||57,075,357.62|
|Total||100.00%||51.60%|||100.00%||60.49%||
||190.12||55.43|||,050.65||3.03|||

 Other receivables with major individual amount and bad debt provision provided individually at the end of the period:
√ Applicable□ Inapplicable
In RMB
|||
|-|-|
|Other receivables (by|Closing balance|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||||
|-|-|-|-|-|
|entity)|Other receivables|Bad debt provision|Provision rate|Reason|
|Fangda SOZN|69,340,548.52|69,340,548.52|100.00%||
|Total|69,340,548.52|69,340,548.52|--|--|

In the group, the other receivables of which bad debt provision are made through the account aging method:
√ Applicable□ Inapplicable
In RMB
|||||
|-|-|-|-|
||Closing balance|||
|Age||||
||Other receivables|Bad debt provision|Provision rate|
|Sub-item of within 1 year||||
|Less than 1 year|67,541,688.92|2,026,250.69|3.00%|
|Subtotal for less than 1 year|67,541,688.92|2,026,250.69|3.00%|
|1-2 years|6,360,027.49|636,002.75|10.00%|
|2-3 years|14,105,836.42|4,231,750.93|30.00%|
|3-4 years|4,053,104.96|2,026,552.49|50.00%|
|4-5 years|777,668.79|622,135.03|80.00%|
|Over 5 years|9,793,339.02|9,793,339.02|100.00%|
|Total|102,631,665.60|19,336,030.91|18.85%|

 Group recognition basis:
Other receivables adopting the balance percentage method in the group:
□ Applicable√ Inapplicable
Other receivables adopting other methods in the group
□ Applicable√ Inapplicable
(2) Bad debt provision made, returned or recovered in the period
A bad debt provision of RMB1,420,862.40 was made in the period. RMB was recovered or reversed.
Including significant recovery or reversal:
In RMB
||||
|-|-|-|
|Entity|Written-back or recovered amount|Method|

(3) Other receivable written off in the current period
In RMB
|||
|-|-|
|Item|Amount|

Including significant other receivable:
In RMB
|||||||
|-|-|-|-|-|-|
|Entity|Nature|Amount|Reason|Writing-off|Related transaction|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||
|-|
|procedure|

Notes to written-off other receivables:
(4) Other receivables are disclosed by nature
In RMB
||||
|-|-|-|
|By nature|Closing balance of book value|Opening balance of book value|
|Deposit|65,160,104.28|48,666,321.95|
|Construction borrowing and advanced|||
||9,090,940.56|8,721,385.12|
|payment|||
|Staff borrowing and petty cash|5,142,003.25|5,532,782.96|
|Receivable refund of VAT|709,907.14|445,607.69|
|Fangda SOZN|69,340,548.52|69,380,548.52|
|Others|22,637,686.37|11,693,404.41|
|Total|172,081,190.12|144,440,050.65|

 (5) Balance of top 5 other receivables at the end of the period
In RMB
|||||||
|-|-|-|-|-|-|
||||||Balance of bad debt|
|Entity|By nature|Closing balance|Age|Percentage (%)|provision at the end|
||||||of the period|
|Guangdong Fangda||||||
||Debt from original|||||
|SOZN Lighting Co.,||69,340,548.52|3-4 years|40.30%|69,340,548.52|
||subsidiary|||||
|Ltd.||||||
|Shenzhen||||||
|Longhua District||||||
||Deposit|20,000,000.00|Less than 1 year|11.62%|600,000.00|
|Public Resource||||||
|Trading Center||||||
||Advanced|||||
|Wang Weihong||13,969,862.10|Over 4 years|8.12%|5,179,934.55|
||construction fee|||||
|China Merchants||||||
|Futures Brokerage|Deposit|10,245,885.00|Less than 1 year|5.95%|370,404.05|
|Co., Ltd.||||||
|Lanzhou Railway||||||
||Deposit|6,931,316.60|2-3 years|4.03%|2,079,394.98|
|Transport Co., Ltd.||||||
|Total|--|120,487,612.22|--|70.02%|77,570,282.10|

Others:
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. 9. Inventories
(1) Classification of inventories
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item|Remaining book|Depreciation||Remaining book|Depreciation||
||||Book value|||Book value|
||value|provision||value|provision||
|Raw materials|68,287,804.67|55,182.86|68,232,621.81|60,999,279.59|55,182.86|60,944,096.73|
|Product in|||||||
||56,687,516.21|0.00|56,687,516.21|31,718,230.82||31,718,230.82|
|process|||||||
|Finished goods in|||||||
||9,706,345.47|0.00|9,706,345.47|11,569,608.79||11,569,608.79|
|stock|||||||
|Assets unsettled|||||||
|for finished|||||||
||158,578,196.96|0.00|158,578,196.96|166,288,661.69||166,288,661.69|
|construction|||||||
|contracts|||||||
|Development cost|211,569,756.50||211,569,756.50|209,395,947.66||209,395,947.66|
|Development|||||||
||216,610,074.94||216,610,074.94|337,505,615.12||337,505,615.12|
|products|||||||
|Low price|||||||
||17,374.15|0.00|17,374.15|41,725.37||41,725.37|
|consumable|||||||
|OEM materials|1,786,223.05|0.00|1,786,223.05|2,147,074.49||2,147,074.49|
|Goods delivered|3,201,094.21|0.00|3,201,094.21||||
|Total|726,444,386.16|55,182.86|726,389,203.30|819,666,143.53|55,182.86|819,610,960.67|

 Whether Company needs to comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure Guideline No.4– Listed Companies Engaged in Seed and Plantation Business
No
(2) Inventory depreciation provision
In RMB
||||||||
|-|-|-|-|-|-|-|
|||Increase in this period||Decrease in this period|||
|Item|Opening balance|||Recover or||Closing balance|
|||Provision|Others||Others||
|||||write-off|||
|Raw materials|55,182.86|||||55,182.86|
|Product in|||||||
|||||||0.00|
|process|||||||
|Finished goods in||||||0.00|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|stock|||
|Assets unsettled|||
|for finished|||
|||0.00|
|construction|||
|contracts|||
|Total|55,182.86|55,182.86|

 (3) Balance at the end of the period includes capitalization of borrowing expense
The balance at the end of the period includes capitalization of borrowing expense of Fangda Town project of RMB7,785,153.91. The capitalization amount of cumulative borrowing expenses is RMB120,294,570.53, of which RMB9,293,934.39 occurred in this year. (4) Assets unsettled for finished construction contracts at the end of the period
In RMB
|||
|-|-|
|Item|Amount|
|Accumulative occurred costs|6,981,959,708.12|
|Accumulative recognized gross margin|1,035,918,349.30|
|Settled amount|7,859,299,860.46|
|Assets unsettled for finished construction contracts|158,578,196.96|

 Others:
10. Other current assets
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Input tax to be deducted|66,232,870.42|31,554,835.73|
|Bank financial products|200,000,000.00|400,000,000.00|
|Prepaid income tax|3,216,614.08|5,861,896.52|
|Prepaid VAT|1,271,090.83|2,233,706.21|
|Other prepaid taxes||11,502.34|
|Tax to be input||228,552.26|
|Total|270,720,575.33|439,890,493.06|

 Others:
11. Sellable financial assets
(1) Sellable financial assets
In RMB
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item|Remaining|Impairment||Remaining|Impairment||
||||Book value|||Book value|
||book value|provision||book value|provision||
|Sellable equity|||||||
||28,562,575.67||28,562,575.67|28,562,575.67||28,562,575.67|
|instruments:|||||||
|Measured at cost|28,562,575.67||28,562,575.67|28,562,575.67||28,562,575.67|
|Total|28,562,575.67||28,562,575.67|28,562,575.67||28,562,575.67|

 (2) Sellable financial assets messaged at costs at the end of the period
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Remaining book value||||Impairment provision||||Shareholdi|Cash|
|Invested|Beginning||||Beginning||||ng in the|dividend|
|||||Closing||||Closing|||
|entity|of the|Increase|Decrease||of the|Increase|Decrease||invested|in the|
|||||balance||||balance|||
||period||||period||||entity|period|
|Shenyang|28,562,575|||28,562,575|||||||
||||||||||64.58%||
|Fangda|.67|||.67|||||||
||28,562,575.67|||28,562,575|||||||
|Total|||||||||--||
|||||.67|||||||

12. Long-term share equity investment
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Change (+,-)|||||||||Balanceofimpairme|
|||||Investme||||||||
||||||Other|||||||
|||||nt gain|||Cash|||||
||||Decrease||miscellan|||||||
|Invested|Opening|Increased||and loss||Other|dividend|Impairme||Closing|nt|
||||d||eous|||||||
|entity|balance|investmen||recognize||equity|or profit|nt|Others|balance|provision|
||||investmen||income|||||||
|||t||d using||change|announce|provision|||at the endof theperiod|
||||t||adjustmen|||||||
|||||the equity|||d|||||
||||||t|||||||
|||||method||||||||
|1. Joint venture||||||||||||
|2. Associate||||||||||||
|ShenzhenGanshang||||||||||||
|Joint|8,472,360|||||||||8,468,905||
|||||-3,454.95||||||||
|Investme|.71|||||||||.76||
|nt Co.,Ltd.||||||||||||
|Shenzhen|6,469,694|||-944,585.||||||5,525,109||

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||||
|-|-|-|-|-|
|Huihai|.91||78|.13|
|Yirong|||||
|Internet|||||
|Service|||||
|Co., Ltd.|||||
|Jiangxi|||||
|Business|||||
|Innovativ|||||
|e|19,200,00|36,800,00|-122,960.|55,877,03|
|Property|0.00|0.00|04|9.96|
|Joint|||||
|Stock|||||
|Co., Ltd.|||||
||34,142,05|36,800,00|-1,071,00|69,871,05|
|Subtotal|||||
||5.62|0.00|0.77|4.85|
||34,142,05|36,800,00|-1,071,00|69,871,05|
|Total|||||
||5.62|0.00|0.77|4.85|

Other note
(2) In this period, the subsidiary Hongjun Investment added a new investment of RMB 36.80 million to Jiangxi Business Innovative Property Joint Stock Co., Ltd., holding16% of the shares and appointing a director on the board of directors.
13. Investment real estates
(1) Investment real estate measured at costs
√ Applicable□ Inapplicable
In RMB
||||||
|-|-|-|-|-|
|Item|Houses & buildings|Land using right|Construction in process|Total|
|I. Book value|||||
|1. Opening balance|767,970,582.63|||767,970,582.63|
|2. Increase in this|||||
||1,659,804.76|||1,659,804.76|
|period|||||
|(1) External|||||
|purchase|||||
|(2) Transfer-in from|||||
|inventory\fixed|||||
||1,659,804.76|||1,659,804.76|
|assets\construction in|||||
|progress|||||
|(3) Increase due to|||||
|enterprise merger|||||

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|3. Decrease in this|||
|period|||
|(1) Purchase|||
|Other transfer-out|||
|4. Closing balance|769,630,387.39|769,630,387.39|
|II. Accumulative|||
|depreciation and|||
|amortization|||
|1. Opening balance|6,455,037.77|6,455,037.77|
|2. Increase in this|||
||943,799.03|943,799.03|
|period|||
|(1) Provision or|||
||417,270.06|417,270.06|
|amortization|||
|(2) Fixed assets|526,528.97|526,528.97|
|3. Decrease in this|||
|period|||
|(1) Purchase|||
|Other transfer-out|||
|4. Closing balance|7,398,836.80|7,398,836.80|
|III. Impairment provision|||
|1. Opening balance|||
|2. Increase in this|||
|period|||
|(1) Provision|||
|3. Decrease in this|||
|period|||
|(1) Purchase|||
|Other transfer-out|||
|4. Closing balance|||
|IV. Book value|||
|1. Closing book|762,231,550.59|762,231,550.59|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|value|||
|2. Opening book||761,515,544.86|
||761,515,544.86||
|value|||

(2) Investment real estate measured at fair value
√ Applicable□ Inapplicable
In RMB
||||||
|-|-|-|-|-|
|Item|Houses & buildings|Land using right|Construction in process|Total|
|I. Opening balance|1,492,278,859.69|||1,492,278,859.69|
|II. Change in this period|||||
|Add: external|||||
|purchase|||||
|Transfer-in|||||
|from inventory\fixed|||||
||83,046,894.38|||83,046,894.38|
|assets\construction in|||||
|progress|||||
|Increase due to|||||
|enterprise merger|||||
|Less: disposal|5,343,905.00|||5,343,905.00|
|Other|||||
|transfer-out|||||
|Change in fair value|||||
|III. Closing balance|1,569,981,849.07|||1,569,981,849.07|

 (3) Investment real estate without ownership certificate
In RMB
||||
|-|-|-|
|Item|Book value|Reason|
|Commercial podium of Fangda Town|1,229,634,705.70|Under initial registration|
|||Not completed (since it will be used for|
|||rental after completion, it will be included|
|Building 1# of Fangda Town|846,945,841.00||
|||in the investment real estate according to|
|||the cost)|

Other note
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. 14. Fixed assets
(1) Fixed assets
In RMB
||||||||
|-|-|-|-|-|-|-|
||Houses &||Mechanical|Transport|Electronics and||
|Item||PV power plants||||Total|
||buildings||equipment|equipment|other devices||
|I. Original book|||||||
|value:|||||||
|1. Opening|||||||
||352,537,411.13|129,638,636.81|119,041,075.24|20,314,073.83|47,717,030.59|669,248,227.60|
|balance|||||||
|2. Increase in|||||||
||24,662,085.83|40,692.31|1,010,683.76|369,128.21|388,412.43|26,471,002.54|
|this period|||||||
|(1) Purchase|24,662,085.83|40,692.31|1,010,683.76|369,128.21|388,412.43|26,471,002.54|
|(2)|||||||
|Transfer-in of|||||||
|construction in|||||||
|progress|||||||
|(3) Increase|||||||
|due to enterprise|||||||
|merger|||||||
|3. Decrease in|||||||
||8,914,051.50||25,405.53|5,280.00|36,066.70|8,980,803.73|
|this period|||||||
|(1) Disposal|||||||
||7,254,246.74||25,405.53|5,280.00|36,066.70|7,320,998.97|
|or retirement|||||||
|(2) Investment|||||||
|real estate|1,659,804.76|||||1,659,804.76|
|transfer-out|||||||
|4. Closing|||||||
||368,285,445.46|129,679,329.12|120,026,353.47|20,677,922.04|48,069,376.32|686,738,426.41|
|balance|||||||
|II. Accumulative|||||||
|depreciation|||||||
|1. Opening|||||||
||56,287,505.21|9,896,036.60|95,637,048.49|13,893,304.21|24,061,664.41|199,775,558.92|
|balance|||||||
|2. Increase in|||||||
||5,020,766.60|3,078,980.50|1,823,913.85|806,517.51|1,372,219.60|12,102,398.06|
|this period|||||||
|(1) Provision|5,020,766.60|3,078,980.50|1,823,913.85|806,517.51|1,372,219.60|12,102,398.06|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||||||
|-|-|-|-|-|-|-|
|3. Decrease in|||||||
||593,677.00||22,864.98|4,752.00|32,460.03|653,754.01|
|this period|||||||
|(1) Disposal|||||||
||67,148.03||22,864.98|4,752.00|32,460.03|127,225.04|
|or retirement|||||||
|(2) Investment|||||||
|real estate|526,528.97|||||526,528.97|
|transfer-out|||||||
|4. Closing|||||||
||60,714,594.81|12,975,017.10|97,438,097.36|14,695,069.72|25,401,423.98|211,224,202.97|
|balance|||||||
|III. Impairment|||||||
|provision|||||||
|1. Opening|||||||
||||1,354,389.50|||1,354,389.50|
|balance|||||||
|2. Increase in|||||||
|this period|||||||
|(1) Provision|||||||
|3. Decrease in|||||||
|this period|||||||
|(1) Disposal|||||||
|or retirement|||||||
|4. Closing|||||||
||||1,354,389.50|||1,354,389.50|
|balance|||||||
|IV. Book value|||||||
|1. Closing|||||||
||307,570,850.65|116,704,312.02|21,233,866.61|5,982,852.32|22,667,952.34|474,159,833.94|
|book value|||||||
|2. Opening|||||||
||296,249,905.92|119,742,600.21|22,049,637.25|6,420,769.62|23,655,366.18|468,118,279.18|
|book value|||||||

(2) Fixed assets without ownership certificate
In RMB
||||
|-|-|-|
|Item|Book value|Reason|
|Houses in Urumuqi for offsetting debt|538,924.59|Historical reasons|
|Yuehai Office Building C 502|142,776.45|Historical reasons|

Other note
On 30.06.18, the cumulative depreciation of the original value of RMB60,287,329.40 in theGroup’s houses and buildings is
RMB8,218,384.06. The net value of RMB52,839,273.10 has been pledged to Shenzhen OCT branch of China Construction Bank.
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. The relevant borrowing has been repaid, but the pledge has not been released.
15. Construction in process
(1) Construction in progress
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item|Remaining book|Impairment||Remaining book|Impairment||
||||Book value|||Book value|
||value|provision||value|provision||
|PV powergeneration project|||||||
||1,703,080.57||1,703,080.57|1,703,080.57||1,703,080.57|
|ChengdaFangda’s Xinjin|||||||
|energy-saving|1,115,549.18||1,115,549.18|965,118.05||965,118.05|
|green curtain wallproject|||||||
|Fangda GroupChina East Base|||||||
||1,630.00||1,630.00||||
|Total|2,820,259.75||2,820,259.75|2,668,198.62||2,668,198.62|

 (2) Changes in major construction in process in this period
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Openingbalance|||||Proporti|||Including:capitalizedinterestfor thecurrentperiod|||
|||||+Amoun|||||||||
||||||||on of||||||
|||||t|||||||||
||||||||accumul||Accumul||||
|||||transfer-i|Other||||||||
||||Increase||||ative||ative||Interest||
|||||n to|decrease|Closing||Project||||Capital|
|Project|Budget||in this||||engineeri||capitaliz||capitaliz||
|||||fixed|in this|balance||progress||||source|
||||period||||ng||ed||ation rate||
|||||assets in|period||||||||
||||||||investme||interest||||
|||||this|||||||||
||||||||nt in the||||||
|||||period|||||||||
||||||||budget||||||
|Xiabu|||||||||||||
|20MWp|||||||||||||
|PV|168,000|, 1,703,08||||1,703,08||Ground|||||
||||||||1.01%|||||Others|
|power|000.00|0.57||||0.57||leveling|||||
|plant|||||||||||||
|project|||||||||||||
|Chengda||||||||Prelimin|||||
||35,000,0|965,118.|150,431.|||1,115,54|||||||
|Fangda’s|||||||3.19%|ary||||Others|
||00.00|05|13|||9.18|||||||
|Xinjin||||||||preparati|||||

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
|||||||||
|-|-|-|-|-|-|-|-|
|energy-s||||||on||
|aving||||||||
|green||||||||
|curtain||||||||
|wall||||||||
|project||||||||
||203,000,|2,668,19|150,431.|2,818,62||||
|Total|||||--|--|--|
||000.00|8.62|13|9.75||||

16. Intangible assets
(1) Intangible assets
In RMB
|||||||
|-|-|-|-|-|-|
||||Unpatented|||
|Item|Land using right|Patent||Computer software|Total|
||||technologies|||
|I. Book value||||||
|1. Opening||||||
||56,497,540.74|10,458,271.30|5,719,888.37|7,928,758.80|80,604,459.21|
|balance||||||
|2. Increase in||||||
|this period||||||
|(1) Purchase|21,750,000.00|177,680.25||749,845.53|22,677,525.78|
|(2) Internal||||||
|R&D||||||
|(3) Increase||||||
|due to enterprise||||||
|merger||||||
|3. Decrease in this||||||
|period||||||
|(1) Purchase||||||
|4. Closing||||||
||78,247,540.74|10,635,951.55|5,719,888.37|8,678,604.33|103,281,984.99|
|balance||||||
|II. Accumulative||||||
|amortization||||||
|1. Opening||||||
||8,816,354.27|3,705,177.97|4,666,638.58|4,546,843.86|21,735,014.68|
|balance||||||
|2. Increase in|570,661.06|299,938.17|222,401.76|285,936.16|1,378,937.15|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
|||||||
|-|-|-|-|-|-|
|this period||||||
|(1) Provision|570,661.06|299,938.17|222,401.76|285,936.16|1,378,937.15|
|3. Decrease in||||||
|this period||||||
|(1) Purchase||||||
|4. Closing||||||
||9,387,015.33|4,005,116.14|4,889,040.34|4,832,780.02|23,113,951.83|
|balance||||||
|III. Impairment||||||
|provision||||||
|1. Opening||||||
|balance||||||
|2. Increase in||||||
|this period||||||
|(1) Provision||||||
|3. Decrease in||||||
|this period||||||
|(1) Purchase||||||
|4. Closing||||||
|balance||||||
|IV. Book value||||||
|1. Closing book||||||
||68,860,525.41|6,630,835.41|830,848.03|3,845,824.31|80,168,033.16|
|value||||||
|2. Opening||||||
||47,681,186.47|6,753,093.33|1,053,249.79|3,381,914.94|58,869,444.53|
|book value||||||

Intangible asset formed by internalR&D of the period takes up1.88% in the closing total book value of intangible assets.
(2) Failure to obtain the land use right certificates
In RMB
||||
|-|-|-|
|Item|Book value|Reason|

Others:
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. 17. Long-term amortizable expenses
In RMB
|||||||
|-|-|-|-|-|-|
|||Increase in this|Amortized amount|||
|Item|Opening balance|||Other decrease|Closing balance|
|||period|in this period|||
|Xuanfeng Chayuan||||||
|village and Zhuyuan||||||
||1,252,933.34||28,050.78||1,224,882.56|
|village land transfer||||||
|compensation||||||
|Dongguan separation||||||
||77,817.13||38,908.80||38,908.33|
|project||||||
|Great Wall||||||
|broadband network|9,799.96||9,799.96|||
|fee||||||
|Membership fee|460,000.00||65,000.10||394,999.90|
|Temporary sales||||||
|center construction|245,651.86||245,651.86|||
|cost||||||
|Total|2,046,202.29||387,411.50||1,658,790.79|

 Other note
18. 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|||||
||335,524,123.23|60,651,438.67|384,353,309.47|73,519,373.35|
|provision|||||
|Deductible loss|79,008,453.57|19,401,372.69|27,076,168.17|5,825,923.08|
|Donation|||700,000.00|175,000.00|
|Unrealizable gross profit|139,359,848.50|34,839,962.13|159,943,328.49|39,138,879.86|
|Reserved expense|2,525,840.01|369,964.39|1,931,083.44|289,662.51|
|Deferred earning|2,295,662.18|348,635.04|2,343,160.67|351,474.11|
|Anticipated liabilities|4,427,700.40|664,155.06|6,368,353.05|955,252.96|
|Arbitrage gain and loss|2,050,625.00|76,473.76|159,000.00|23,850.00|
|Adjustment of fair value|309,641.05|46,446.16|309,641.05|46,446.16|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||||
|-|-|-|-|-|
|of investment real estate|||||
|Provided unpaid taxes|518,334,989.90|129,583,747.48|441,086,914.18|110,271,728.55|
|Total|1,083,836,883.84|245,982,195.38|1,024,270,958.52|230,597,590.58|

 (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|
|Gain/loss caused by|||||
||1,143,275,103.52|285,818,775.88|1,143,654,805.86|285,913,701.47|
|changes in fair value|||||
|Estimated gross margin|||||
|when Fangda Town|||||
|records income, but does|234,545,169.56|58,636,292.39|113,637,356.36|28,409,339.09|
|not reach the taxable|||||
|income level|||||
|Total|1,377,820,273.08|344,455,068.27|1,257,292,162.22|314,323,040.56|

 (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||245,982,195.38||230,597,590.58|
|assets|||||
|Deferred income tax||344,455,068.27||314,323,040.56|
|liabilities|||||

(4) Details of unrecognized deferred income tax assets
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Deductible temporary difference|946,030.45|946,030.45|
|Deductible loss|5,506,383.60|5,506,383.60|
|Total|6,452,414.05|6,452,414.05|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. (5) Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
|||||
|-|-|-|-|
|Year|Closing amount|Opening amount|Notes|
|2021|772,174.85|772,174.85||
|2022|4,734,208.75|4,734,208.75||
|Total|5,506,383.60|5,506,383.60|--|

Others:
19. Other non-current assets
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Prepaid house and equipment amount|1,447,483.00|31,130,198.46|
|Total|1,447,483.00|31,130,198.46|

 Others:
The closing balance of other non-current assets is mainly the prepaid house payment of Fangda Jianke.
20. Short-term borrowings
(1) Classification of short-term borrowings
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Guarantee loan|324,000,000.00|416,000,000.00|
|Acceptant discount|200,000,000.00|200,000,000.00|
|Total|524,000,000.00|616,000,000.00|

 Notes to classification of short-term borrowings
21. Derivative financial liabilities
√ Applicable□ Inapplicable
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Futures contracts|2,050,625.00|159,000.00|
|Total|2,050,625.00|159,000.00|

Others:
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. 22. Notes payable
In RMB
||||
|-|-|-|
|Type|Closing balance|Opening balance|
|Commercial acceptance|452,380,678.45|62,954,258.46|
|Bank acceptance|38,977,593.10|469,966,767.02|
|Total|491,358,271.55|532,921,025.48|

 The total amount of payable bills that have matured but not been paid at the end of the period is RMB869,338.55.
23. Account payable
(1) Account payable
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Account repayable and engineering|||
||610,716,916.55|610,735,320.33|
|repayables|||
|Construction payable|23,127.38|34,924,745.05|
|Payable installation and implementation|||
||251,914,154.85|297,174,327.49|
|fees|||
|Others|5,022.00|3,557,866.05|
|Total|862,659,220.78|946,392,258.92|

 (2) Significant payables aging more than 1 year
In RMB
||||
|-|-|-|
|Item|Closing balance|Reason|
|Supplier 1|77,006,984.19|Not mature|
|Supplier 2|12,652,180.48|Not mature|
|Supplier 3|11,331,623.97|Not mature|
|Supplier 4|11,269,909.64|Not mature|
|Supplier 5|9,382,975.54|Not mature|
|Total|121,643,673.82|--|

Others:
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. 24. Prepayment received
(1) Prepayment received
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Curtain wall and screen door engineering|||
||157,270,671.47|89,485,775.55|
|payment|||
|Material loan|1,023,741.82|5,227,948.87|
|Real estate sales payment|33,936,292.00|78,377,257.88|
|Others|1,194,550.67|2,260,704.15|
|Total|193,425,255.96|175,351,686.45|

 25.Employees’ wage payable
1.Employees’ wage payable
In RMB
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|1. Short-term|||||
||40,387,519.16|113,392,044.46|133,917,808.10|19,861,755.52|
|remuneration|||||
|2. Retirement pension|||||
|program-defined|11,611.59|6,354,798.60|6,354,346.31|12,063.88|
|contribution plan|||||
|3. Dismiss compensation||658,490.00|658,490.00||
|4. Other welfare due in|||||
|||0.00|0.00||
|one year|||||
|Total|40,399,130.75|120,405,333.06|140,930,644.41|19,873,819.40|

 (2) Short-term remuneration
In RMB
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|1. Wage, bonus,|||||
||38,779,381.74|106,385,893.92|126,920,701.62|18,244,574.04|
|allowance and subsidies|||||
|2. Employee welfare||1,543,356.07|1,517,804.07|25,552.00|
|3. Social insurance||2,414,768.04|2,414,768.04||
|Including:|||||
|||1,976,989.74|1,976,989.74||
|medical insurance|||||

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||||
|-|-|-|-|-|
|Labor injury|||||
|||216,154.82|216,154.82||
|insurance|||||
|Breeding|||||
|||221,623.48|221,623.48||
|insurance|||||
|4. Housing fund|65,471.00|2,888,043.89|2,889,669.89|63,845.00|
|5. Labor union budget|||||
||1,542,666.42|159,982.54|174,864.48|1,527,784.48|
|and staff education fund|||||
|Total|40,387,519.16|113,392,044.46|133,917,808.10|19,861,755.52|

 (3) Defined contribution plan
In RMB
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|1. Basic pension|11,611.59|6,112,144.65|6,113,174.42|10,581.82|
|2. Unemployment|||||
|||242,653.95|241,171.89|1,482.06|
|insurance|||||
|Total|11,611.59|6,354,798.60|6,354,346.31|12,063.88|

 Others:
26. Taxes payable
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|VAT|6,252,241.32|12,300,790.83|
|Enterprise income tax|38,377,712.06|114,953,308.81|
|Personal income tax|2,140,346.81|1,183,514.25|
|City maintenance and construction tax|1,527,893.08|1,881,115.36|
|Land using tax|493,781.01|333,906.32|
|Property tax|1,632,123.67|1,432,301.04|
|Education surtax|738,010.58|896,603.56|
|Local education surtax|353,663.61|460,806.13|
|Deed tax||3,429,437.28|
|Others|3,558,361.26|83,732.86|
|Total|55,074,133.40|136,955,516.44|

 Others:
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. 27. Interest payable
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Long-term borrowing with interest|||
|installment and repayment of principal|1,965,436.98|1,822,719.47|
|upon maturity|||
|Short-term borrowing interests payable|446,878.62|602,592.50|
|Total|2,412,315.60|2,425,311.97|

 28. Other payables
(1) Other payables presented by nature
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Performance and quality deposit|33,348,339.57|20,867,337.69|
|Deposit|9,912,642.10|8,047,165.84|
|Reserved expense|8,844,296.69|11,466,723.82|
|Fangda Town pledge|100,000.00|100,000.00|
|Tax withheld|518,334,989.90|441,086,914.18|
|Others|16,628,045.45|19,621,369.16|
|Total|587,168,313.71|501,189,510.69|

 Other note
1. The tax withheld is the land VAT that needs to be settled and paid for the property delivered of the Fangda Town developed by Fangda Property.
2. The major other payables aged over 1 year at the end of the period are mainly the land value-added tax of RMB353,577,098.43, which is not yet settled.
29. Non-current liabilities due within 1 year
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Long-term loans due within 1 year|200,000,000.00|200,000,000.00|
|Total|200,000,000.00|200,000,000.00|

 Others:
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. 30. Other current liabilities
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Substituted money on VAT|12,076,092.33|9,531,014.81|
|Total|12,076,092.33|9,531,014.81|

 31. Long-term borrowings
(1) Classification of long-term borrowings
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Loan by pledge|793,978,153.39|893,978,153.39|
|Guarantee loan|500,000,000.00||
|Total|1,293,978,153.39|893,978,153.39|

 Notes to classification of long-term borrowings:
The above-mentioned borrowing is the100% stock pledging of Fangda Property Development held by the Company.
Other note, including interest rate range:
The interest rate range for pledge loans is5.39%-6.785%; the interest rate for guaranteed loans is4.845%.
In RMB 32. Anticipated liabilities
In RMB
|||||
|-|-|-|-|
|Item|Closing balance|Opening balance|Reason|
|Others|4,427,700.40|6,368,353.05||
|Total|4,427,700.40|6,368,353.05|--|

Note: including related significant assumptions and estimates for anticipated liabilities
33. Deferred earning
In RMB
|||||||
|-|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|Reason|
|Government subsidy|10,489,483.94||123,854.91|10,365,629.03|Assets-related|
|Government subsidy||1,546,500.00|1,546,500.00||Earning-related|
|Total|10,489,483.94|1,546,500.00|1,670,354.91|10,365,629.03|--|

Items involving government subsidies:
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||Amount|Other misc.|||||
|||||||||Related to|
||Opening|Amount of|included in|gains|Costs offset||Closing||
|Liabilities||||||Other change||assets/earnin|
||balance|new subsidy|non-operatin|recorded in|in the period||balance||
|||||||||g|
||||g revenue|this period|||||
|Major|||||||||
|investment|||||||||
|project prize|||||||||
|from Industry|||||||||
|and Trade||||||||Assets-relate|
||1,738,095.50|||28,571.40|||1,709,524.10||
|Development||||||||d|
|Division of|||||||||
|Dongguan|||||||||
|Finance|||||||||
|Bureau|||||||||
|Massive|||||||||
|production|||||||||
|project of|||||||||
|air-breathing||||||||Assets-relate|
||7,517,843.03|||61,993.62|||7,455,849.41||
|double-layer||||||||d|
|hollow glass|||||||||
|energy-savin|||||||||
|g curtain call|||||||||
|Railway|||||||||
|transport|||||||||
|screen door|||||||||
|controlling||||||||Assets-relate|
||125,065.17|||18,927.09|||106,138.08||
|system and||||||||d|
|information|||||||||
|transmission|||||||||
|technology|||||||||
|Distributed|||||||||
|PV power|||||||||
|generation|||||||||
|project|||||||||
|subsidy||||||||Assets-relate|
||443,750.09|||12,499.98|||431,250.11||
|sponsored by||||||||d|
|Dongguan|||||||||
|Reform and|||||||||
|Development|||||||||
|Commission|||||||||
|Luxi county|184,730.15|||1,862.82|||182,867.33|Assets-relate|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
|||||||
|-|-|-|-|-|-|
|Xuanfeng|||||d|
|town||||||
|government||||||
|business||||||
|introduction||||||
|subsidy||||||
|Shenzhen||||||
|SME Service||||||
|Bureau|||||Assets-relate|
||480,000.00|||480,000.00||
|enterprise IT|||||d|
|construction||||||
|subsidy||||||
|Government|||||Earning-relat|
|||1,546,500.00|1,546,500.00|||
|subsidy|||||ed|
||10,489,483.94|||10,365,629.03||
|Total||1,546,500.00|1,670,354.91||--|

Others:
34. Capital share
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Change (+,-)||||||
||Opening||||||Closing|
|||Issued new||Transferred||||
||balance||Bonus shares||Others|Subtotal|balance|
|||shares||from reserves||||
|Total of capital|1,183,642,254.00||||||1,183,642,254.00|
|shares||||||||

 Others:
35. Capital reserve
In RMB
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|Capital premium (share|||||
||71,375,387.61|||71,375,387.61|
|capital premium)|||||
|Other capital reserves|1,454,097.35|||1,454,097.35|
|Total|72,829,484.96|||72,829,484.96|

 Other note, including explanation about the reason of the change:
36. Other miscellaneous income
In RMB
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
|||||||||
|-|-|-|-|-|-|-|-|
|||Amount occurred in the current period||||||
||||Less: amount|||||
|||||||After-tax||
||||written into|||||
||||||After-tax|amount||
||Opening|Amount|other gains|Less:|||Closing|
|Item||||||||
||||||amount|attributed to||
||balance|before|and transferred|Income tax|||balance|
||||||attributed to|minority||
|||income tax|into gain/loss|expenses||||
||||||the parent|shareholder||
||||in previous|||||
|||||||s||
||||terms|||||
|2. Other misc. incomes that will be|||||-1,879,756.17||6,706,091|
||8,585,847.99|-671,004.92|1,303,288.75|-94,537.50||||
|re-classified into gain and loss|||||||.82|
|Effective part in the gain and|||||-1,839,001.25||-1,958,85|
||-119,850.00|-630,250.00|1,303,288.75|-94,537.50||||
|loss of arbitrage of cash flow|||||||1.25|
|Translation difference of|||||-40,754.92||-91,610.3|
||-50,855.47|-40,754.92||||||
|foreign exchange statement|||||||9|
|Investment real estate measured at|||||||8,756,553|
||8,756,553.46|||||||
|fair value|||||||.46|
||8,585,847.99||||-1,879,756.17||6,706,091.82|
|Other miscellaneous income||-671,004.92|1,303,288.75|-94,537.50||||

 Other note, including the adjustment of the initial recognition amount of the effective part of the cash flow hedging profit and loss transferred to the hedged item:
37. Surplus reserves
In RMB
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|Statutory surplus|||||
||110,690,396.65|||110,690,396.65|
|reserves|||||
|Total|110,690,396.65|||110,690,396.65|

 Note, including explanation about the reason of the change:
38. Retained profit
In RMB
||||
|-|-|-|
|Item|Current period|Last period|
|Adjustment on retained profit of previous period|1,863,191,218.58|1,016,820,576.30|
|Retained profit adjusted at beginning of year|1,863,191,218.58|1,016,820,576.30|
|Plus: Net profit attributable to owners of theparent|||
||230,131,663.19|228,003,319.43|
|Common share dividend payable|177,546,338.10|276,183,192.60|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|Closing retained profit|1,915,776,543.67|968,640,703.13|

 Details of retained profit adjusted at beginning of the period
1) Retrospective adjustment due to adopting of the Enterprise Accounting Standard and related regulations, included the retained profit by RMB.
2) Variation of accounting policies, influenced the retained profit by RMB.
3) Correction of material accounting errors, influenced the retained profit by RMB.
4) Change of consolidation range caused by merger of entities under common control, influenced the retained profit by RMB. 5) Other adjustment influenced the retained profit by RMB.
39. Operational revenue and costs
In RMB
||||||
|-|-|-|-|-|
||Amount occurred in the current period||Occurred in previous period||
|Item|||||
||Income|Cost|Income|Cost|
|Main business|1,426,207,018.36|925,306,886.60|1,380,976,886.98|893,499,713.26|
|Other businesses|15,843,878.17|10,179,289.13|18,734,054.31|9,898,213.71|
|Total|1,442,050,896.53|935,486,175.73|1,399,710,941.29|903,397,926.97|

 40. Taxes and surcharges
In RMB
||||
|-|-|-|
|Item|Amount occurred in the current period|Occurred in previous period|
|City maintenance and construction tax|3,980,442.45|3,811,990.65|
|Education surtax|2,866,384.67|1,912,382.95|
|Property tax|2,556,126.19|1,912,543.31|
|Land using tax|808,834.13|602,382.14|
|Vehicle usage tax|15,240.00||
|Stamp tax|849,673.18|480,851.19|
|Business tax||1,199,973.15|
|Land VAT|89,995,084.20|93,136,916.43|
|Others|132,410.21|1,015,236.98|
|Total|101,204,195.03|104,072,276.80|

 Others:
41. Sales expense
In RMB
||||
|-|-|-|
|Item|Amount occurred in the current period|Occurred in previous period|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|Labor costs|9,512,746.08|10,452,498.33|
|Freight and miscellaneous charges|2,569,313.15|2,531,576.75|
|Advertisement and exhibition costs|932,974.88|2,068,972.23|
|Travel expense|1,011,110.84|2,713,200.94|
|Sales agency fee|8,390,339.52|895,705.00|
|Others|4,643,656.77|4,475,328.52|
|Total|27,060,141.24|23,137,281.77|

 Others:
The increase in sales agency fees for the current period was due to the increase in commissions paid by the subsidiary, Fangda Property, to various sales channels and to the agency companies.
42. Management expenses
In RMB
||||
|-|-|-|
|Item|Amount occurred in the current period|Occurred in previous period|
|Labor costs|36,024,438.72|35,844,267.20|
|Depreciation and amortization|5,262,351.65|8,586,833.31|
|R&D|7,700,023.60|8,758,714.52|
|Tax||120,324.19|
|Others|25,547,771.83|17,696,589.57|
|Total|74,534,585.80|71,006,728.79|

 Others:
43. Financial expenses
In RMB
||||
|-|-|-|
|Item|Amount occurred in the current period|Occurred in previous period|
|Interest expense|37,291,108.08|31,694,708.78|
|Less: Interest income|3,715,935.93|7,660,124.39|
|Exchange gain/loss|687,689.10|1,379,236.27|
|Commission charges and others|490,539.57|483,494.23|
|Total|33,772,321.68|25,897,314.89|

 Others:
44. Assets impairment loss
In RMB
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|Item|Amount occurred in the current period|Occurred in previous period|
|1. Bad debt loss|1,854,963.05|-9,908,133.36|
|Total|1,854,963.05|-9,908,133.36|

 Others:
45. 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|||
|Financial assets measured at fair value|||
|with variations accounted into current|-8,572,843.25||
|income account|||
|Investment real estate measured at fair|||
||-323,794.00|698,811.63|
|value|||
|Total|-8,896,637.25|698,811.63|

 Others:
46. Investment income
In RMB
||||
|-|-|-|
|Item|Amount occurred in the current period|Occurred in previous period|
|Gains from long-term equity investment|||
||-1,071,000.77|-626,631.62|
|measured by equity|||
|Investment gain obtained from disposal of|||
|financial assets measured at fair value with|||
||9,187,877.90||
|variations accounted into current income|||
|account|||
|Investment gain of financial products|18,127,885.28|7,507,227.89|
|Total|26,244,762.41|6,880,596.27|

 Others:
47. Assets disposal gains
In RMB
||||
|-|-|-|
|Source|Amount occurred in the current period|Occurred in previous period|
|Gain and loss from disposal of fixed assets|||
||-1,551,291.52|-87,244.32|
|("-" for loss)|||
|Total|-1,551,291.52|-87,244.32|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. 48. Other gains
In RMB
||||
|-|-|-|
|Source|Amount occurred in the current period|Occurred in previous period|
|Pre-employment training subsidy|6,400.00|119,100.00|
|Childbearing subsidy|34,353.92|73,280.27|
|Significant industrial and trade|||
||28,571.40|28,571.40|
|development investment project award|||
|Self-breathing dual-layer hallow grass|||
|energy-saving curtain wall development|61,993.62|61,993.62|
|project|||
|Employment subsidy|14,134.11|13,781.11|
|Intellectual property right subsidy|26,300.00|100,000.00|
|Railway transport screen door controlling|||
|system and information transmission|18,927.09|21,614.64|
|technology|||
|Patent subsidy|35,200.00|7,000.00|
|Hi-tech enterprise technology subsidy|300,000.00|100,000.00|
|Industrial growth||680,000.00|
|PV power generation Dongguan subsidy|12,499.98|12,499.98|
|Zhongshan Henglan economy|||
|development and technological bureau||190,609.98|
|sponsorship|||
|VAT rebated into revenue|945,948.64||
|Integration sponsorship|100,000.00||
|Shenzhen Technology Innovation|||
||1,113,000.00||
|Committee 2016 R&D sponsorship|||
|Others|1,862.82||
|Total|2,699,191.58|1,408,451.00|

 49. Non-business income
In RMB
|||||
|-|-|-|-|
||Amount occurred in the current||Amount accounted into the|
|Item||Occurred in previous period||
||period||current accidental gain/loss|
|Government subsidy|303,119.83|10,266.85|303,119.83|
|Penalty income|213,905.88|204,691.26|213,905.88|
|Compensation received|1,500,000.00||1,500,000.00|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
|||||
|-|-|-|-|
|Penalty received|18,200.00|183,860.65|18,200.00|
|VAT rebated into revenue||1,233,869.85||
|Payable account not able to be||||
||0.20|4,428.50|0.20|
|paid||||
|Others|5,030,812.50|2,870,397.98|5,030,812.50|
|Total|7,066,038.41|4,507,515.09|7,066,038.41|

 Government subsidies accounted into current profit or loss:
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Whether||Amount|||
||||||Whether it is||Occurred in|Related to|
|||||affecting gain||occurred in|||
|Item|Issuer|Reason|Nature||a special||previous|assets/earnin|
|||||and loss in||the current|||
||||||subsidy||period|g|
|||||this year||period|||
|Personal|||||||||
||Finance|||||||Earning-relat|
|income tax||Award||No|No|303,119.83|10,266.85||
||Bureau|||||||ed|
|refunding|||||||||
|Total|--|--|--|--|--|303,119.83|10,266.85|--|

 Others:
1. The compensation income of RMB1,500,000.00 is the defendant's indemnity in the patent infringement lawsuit.
2. The other items in the other details are mainly the subsidiary company Jianke Company's confirmation of the winning case income of RMB4,688,191.35.
50. Non-business expenses
In RMB
|||||
|-|-|-|-|
||Amount occurred in the current||Amount accounted into the|
|Item||Occurred in previous period||
||period||current accidental gain/loss|
|Loss of non-current assets||||
||14,020.21||14,020.21|
|disposal||||
|Penalty and overdue fine|225,047.87||225,047.87|
|Others|283,092.35|229,327.22|283,092.35|
|Total|522,160.43|229,327.22|522,160.43|

 Others:
51. Income tax expenses
(1) Details about income tax expense
In RMB
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|Item|Amount occurred in the current period|Occurred in previous period|
|Income tax expenses in this period|48,132,940.61|68,286,547.49|
|Deferred income tax expenses|14,913,239.34|-518,442.97|
|Total|63,046,179.95|67,768,104.52|

 (2) Adjustment process of accounting profit and income tax expense
In RMB
|||
|-|-|
|Item|Amount occurred in the current period|
|Total profit|275,177,843.14|
|Income tax expenses calculated based on the legal (or applicable)||
||68,794,460.79|
|tax rates||
|Impacts of different tax rates applicable for some subsidiaries|-10,867,680.86|
|Impacts of income tax before adjustment|1,876,714.28|
|Impacts of non-deductible cost, expense and loss|256,842.03|
|Deductable temporary difference and deductable loss of||
||2,002,057.41|
|unrecognized deferred income tax assets||
|Taxation impact of R&D expense and (presented with “-”)|-417,287.42|
|Others|1,401,073.72|
|Income tax expenses|63,046,179.95|

 Other note
52. Other miscellaneous income
See Note VII 36.
53. Notes to the cash flow statement
(1) Other cash inflow related to operation
In RMB
||||
|-|-|-|
|Item|Amount occurred in the current period|Occurred in previous period|
|Interest income|2,872,253.69|3,708,261.11|
|Subsidy income|2,028,279.98|2,874,387.49|
|Retrieving of deposits for exchange bills|7,101,000.00||
|Bidding deposit and pledge|224,435,277.86|75,525,724.38|
|Others|6,855,911.78|9,607,007.94|
|Total|243,292,723.31|91,715,380.92|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. Notes to other cash inflow related to operation:
(2) Other cash paid related to operation
In RMB
||||
|-|-|-|
|Item|Amount occurred in the current period|Occurred in previous period|
|Management costs paid|12,475,066.93|15,879,543.69|
|Sales costs paid|3,036,411.56|5,406,466.34|
|Deposit and pledge paid|282,540,434.70|69,992,371.84|
|Personal borrowing|||
|Others|15,465,822.42|9,991,825.76|
|Total|313,517,735.61|101,270,207.63|

 Notes to other cash paid related to operation:
54. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB
||||
|-|-|-|
|Supplementary information|Amount of the Current Term|Amount of the Previous Term|
|1. Net profit adjusted to cash flow of|||
||--|--|
|business operation|||
|Net profit|230,131,663.19|227,518,243.36|
|Plus: Asset impairment provision|1,854,963.05|-9,908,133.36|
|Fixed asset depreciation, gas and petrol|||
||10,105,993.76|14,933,192.38|
|depreciation, production goods depreciation|||
|Amortization of intangible assets|986,452.62|1,706,801.70|
|Amortization of long-term amortizable|||
||348,502.82|2,114,078.76|
|expenses|||
|Loss from disposal of fixed assets, intangible|||
|assets, and other long-term assets (“-“ for|-1,551,865.58|-33,313.54|
|gains)|||
|Loss from fixed asset discard (“-“ for gains)|743.00|120,557.86|
|Loss from fair value fluctuation (“-“ for|||
||8,896,637.25|-698,811.63|
|gains)|||
|Financial expenses (“-“ for gains)|31,237,594.20|31,694,708.78|
|Investment losses (“-“ for gains)|-26,244,762.41|-6,880,596.27|
|Decrease of deferred income tax asset|-15,384,604.80|-19,617,905.97|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|(“-“ for increase)|||
|Increase of deferred income tax asset (“-“ for|||
||30,132,027.71|18,971,848.45|
|increase)|||
|Decrease of inventory (“-“ for increase)|93,221,757.37|72,721,993.69|
|Decrease of operational receivable items|||
||-225,446,791.23|323,784,130.19|
|(“-“ for increase)|||
|Increase of operational receivable items|||
||-119,226,407.78|-441,163,587.02|
|(“-“ for decrease)|||
|Others|-50,488,170.81||
|Cash flow generated by business operations,|-31,426,267.64|215,263,207.38|
|net|||
|2. Major investment and financing operation|||
||--|--|
|not involving with cash|||
|3. Net change of cash and cash equivalents|--|--|
|Balance of cash at period end|951,511,945.70|792,090,304.49|
|Less: Initial balance of cash|931,285,535.55|935,824,575.40|
|Net increase in cash and cash equivalents|20,226,410.15|-143,734,270.91|

 (2) Composition of cash and cash equivalents
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|I. Cash|951,511,945.70|931,285,535.55|
|Including: Cash in stock|205,631.16|42,636.09|
|Bank savings can be used at any time|950,871,321.82|921,773,052.65|
|Other monetary capital can be used at|||
||434,992.72|9,469,846.81|
|any time|||
|III. Balance of cash and cash equivalents at|951,511,945.70|931,285,535.55|
|end of term|||

Others:
55. Ownership- or use-right-restricted assets
In RMB
||||
|-|-|-|
|Item|Closing book value|Reason|
|Monetary capital|247,683,230.02||
|Fixed assets|52,068,945.34||
|Investment real estate|307,321,568.00|Loan by pledge|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|100% stake in Fangda Property|||
||200,000,000.00|Loan by pledge|
|Development held by the Company|||
|Total|807,073,743.36|--|

Others:
56. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
|||||
|-|-|-|-|
||Closing foreign currency|||
|Item||Exchange rate|Closing RMB balance|
||balance|||
|Monetary capital|--|--|80,938,421.50|
|Including: USD|4,340,674.80|6.6166|28,720,508.88|
|HK Dollar|56,604,049.86|0.8431|47,722,874.44|
|AUD|326,537.67|4.8633|1,588,050.65|
|SGD|600,791.04|4.8386|2,906,987.53|
|Account receivable|--|--|35,120,183.23|
|Including: USD|5,097,535.12|6.6166|33,728,350.87|
|AUD|4,404.39|4.8633|21,419.87|
|SGD|283,225.00|4.8386|1,370,412.49|
|Other receivables|||268,037.09|
|||--||
|Including: USD|13,682.31|6.6166|90,530.37|
|HK Dollar|208,960.00|0.8431|176,174.18|
|AUD|274.00|4.8633|1,332.54|
|Account payable|||110,007.59|
|||--||
|Including: USD|16,626.00|6.6166|110,007.59|
|Employees’ wage payable|||600,329.72|
|||--||
|Including: HKD|653,533.19|0.8431|550,993.83|
|AUD|10,144.53|4.8633|49,335.89|
|Other payables|||26,897.80|
|||--||
|Including: USD|4,065.20|6.6166|26,897.80|

Others:
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. (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
57. Hedging
Hedging items and related tools, qualitative and quantitative information about hedging risks:
Hedging type Hedged item Hedging instrument Hedged risk
Cash flow hedging Aluminum plate futures transaction Aluminum futures contract Rise on raw material prices, causing purchase cost increase
VIII. 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: 1. In the current period, Shanghai Fangda Jingling Technology Co. Ltd. and Shenzhen Fangda Cloud Rail Technology Co. Ltd. have been newly established two new companies in the current consolidated statement.
2. In this period, Fangda Decoration Engineering (Shenyang) Co. Ltd. an indirectly controlled subsidiary was cancelled and no longer controlled. Therefore, one subsidiary is moved out of the consolidation scope in this period.
IX. Equity in Other Entities
1. Interests in subsidiaries
(1) Group Composition
||||||||
|-|-|-|-|-|-|-|
|||Registered||Shareholding percentage|||
|Company|Place of business||Business|||Obtaining method|
|||address||Direct|Indirect||
||||Designing,||||
||||manufacturing,||||
|Fangda Jianke|Shenzhen|Shenzhen||98.39%|1.61%|Incorporation|
||||and installation of||||
||||curtain walls||||
||||Production,||||
||||processing and||||
|Fangda|||||||
||Shenzhen|Shenzhen|installation of|14.00%|86.00%|Incorporation|
|Automatic|||||||
||||subway screen||||
||||doors||||
|Fangda New|||Prodution and||||
||Nanchang|Nanchang||75.00%|25.00%|Incorporation|
|Material|||sales of new-type||||

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||||||
|-|-|-|-|-|-|-|
||||materialsm||||
||||composite||||
||||materials and||||
||||production of||||
||||curtain walls||||
||||Computer||||
|Kexunda|Shenzhen|Shenzhen|software||100.00%|Incorporation|
||||development||||
||||Real estate||||
|Fangda Property|Shenzhen|Shenzhen|development and|100.00%||Incorporation|
||||operation||||
||||Design and||||
|Fangda New|||||||
||Shenzhen|Shenzhen|construction of|100.00%||Incorporation|
|Energy|||||||
||||PV power plants||||
||||Trusted||||
||||processing of||||
|Chengdu Fangda|Chengdu|Chengdu|||100.00%|Incorporation|
||||building curtain||||
||||wall materials||||
|Shihui|||||||
|International|Virgin Islands|Virgin Islands|Investment|100.00%||Incorporation|
|Holding Co., Ltd.|||||||
||||Production and||||
|Dongguan New|||||||
||Dongguan|Dongguan|sales of building||100.00%|Incorporation|
|Material|||||||
||||curtain walls||||
||||Designing,||||
|Shenyang|||manufacturing,||||
||Shenyang|Shenyang|||100.00%|Incorporation|
|Decoration|||and installation of||||
||||curtain walls||||
|Fangda Property|||Property||||
||Shenzhen|Shenzhen|||100.00%|Incorporation|
|Management|||management||||
|Jiangxi Fangda|||||||
||||Real estate||||
|Property|||||||
||Nanchang|Nanchang|development and||100.00%|Incorporation|
|Development Co.,|||||||
||||operation||||
|Ltd.|||||||
|Pingxiang Fangda|||Design and||||
|Luxin New|Pingxiang|Pingxiang|construction of||100.00%|Incorporation|
|Energy Co., Ltd.|||PV power plants||||
|Pingxiang|||||||
||||Design and||||
|Xiangdong|||||||
||Pingxiang|Pingxiang|construction of||100.00%|Incorporation|
|Fangda New|||||||
||||PV power plants||||
|Energy Co., Ltd.|||||||

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||||||
|-|-|-|-|-|-|-|
|Nanchang Xinjian|||Design and||||
|Fangda New|Nanchang|Nanchang|construction of||100.00%|Incorporation|
|Energy Co., Ltd.|||PV power plants||||
|Dongguan|||Design and||||
|Fangda New|Dongguan|Dongguan|construction of||100.00%|Incorporation|
|Energy Co., Ltd.|||PV power plants||||
|Kechuangyuan|||Software||||
||Shenzhen|Shenzhen|||100.00%|Incorporation|
|Software|||development||||
|Fangda|||||||
|Automation|||Metro screen||||
||Hong Kong|Hong Kong|||100.00%|Incorporation|
|(Hong Kong) Co.,|||door||||
|Ltd.|||||||
|Hongjun|||||||
|Investment|Shenzhen|Shenzhen|Investment|98.00%|2.00%|Incorporation|
|Company|||||||
||||Designing,||||
||||manufacturing,||||
|Jianke Australia|Australia|Australia|||100.00%|Incorporation|
||||and installation of||||
||||curtain walls||||
||||Design,||||
||||development and||||
|Fangda Cloud|||||||
||Shenzhen|Shenzhen|sales of cloud rail||100.00%|Incorporation|
|Rail|||||||
||||transport||||
||||equipment||||
|Shanghai Fangda|||||||
||||Production and||||
|Jingling|||||||
||Shanghai|Shanghai|sales of building||100.00%|Incorporation|
|Technology Co.,|||||||
||||curtain walls||||
|Ltd.|||||||

Note to the difference between shareholdings in subsidiaries and percentage of votes:
Basis for holding half or less votes but controlling invested entities, and holding half or more votes but not controlling invested entities:
Basis for control of structural entities incorporated in the consolidation scope:
Basis for recognizing a company as an agent or consigner:
Others:
2. Interests in joint ventures or associates
(1) Financial summary of insignificant joint ventures and associates
In RMB
|||
|-|-|
|Closing balance/amount occurred in this|Opening balance/amount occurred in|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
||period|previous period|
|Joint venture:|--|--|
|Total shareholding|--|--|
|Associate:|--|--|
|Total book value of investment|69,871,054.85|34,142,055.62|
|Total shareholding|--|--|
|Net profit|-1,071,000.77|-2,162,975.06|
|Total of misc. incomes|-1,071,000.77|-2,162,975.06|

 Other note
X. Risks of Financial Tools
Major financial tools of the Group include monetary fund, accounts receivable, receivable bills, other receivables, other current assets, financial assets measured at fair value and whose change recorded in the profit and loss of this period, accounts payable, interest payable, payable bills, other payables, short-term borrowings, other current liabilities, non-current liabilities due within one year and long-term borrowings. Details about the Group's financial instruments are disclosed in related notes. The following explains risks related to the financial instruments and risk management policies adopted by the Group to lower the risks. The management of the Group manages and monitor the risks to ensure that the risks are within the acceptable range.
1. Risk management target and policy
The target of the risk management is to balance between risk and benefit and lower financialrisks’ impacts on theGroup’s financial performance. Based on the target, the Group has formulated risk management policy to identify and analyze risks facing the Group and set an appropriate acceptable level and internal control procedures to monitor the risks. The Group regularly reviews the risk management policies and related internal control system to suit the market status and changes in theGroup’s operating activities. The internal auditing department of the Group will regularly or randomly check the implementation of the internal control system. Risks caused by theGroup’s financial instruments are credit risk, liquidity risk and market risk (including interest, exchange rate and product price/equity tool price risks).
(1) Credit risk
Credit risk is caused by the failure of one party of a financial instrument in performing its obligations, causing the risk of financial loss for the other party.
The Group manages credit risks through classification. The credit risk is mainly caused by bank deposit and receivables.
TheGroup’s bank deposit is mainly deposited in state-owned banks and large-sized listed banks. The credit risk caused by bank deposited is minor.
For receivables, the Group sets up related policies to control the credit risk. 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 monitorsdebtors’ 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.
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. 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 theGroup’s receivables, accounts receivable from top 5 customers account for16.94% of the total accounts receivable (2017:19.39%); among other receivables, other receivables from top 5 customers account for70.02% of the total other receivables (2017:30.70%).
(2) Liquidity risk
Liquidity risk is the risk of capital shortage when the Group needs to pay cash or settled with other financial assets.
The Group keeps adequate cash and cash equivalent, and monitors the level to ensure that the cash and cash equivalent can meet the operation needs. The management of the Group monitors the use of bank loans and ensures that they are used as agreed. The Group also obtains guarantee from financial institutions for adequate standby fund to meet short-term and long-term capital demand. The Group can also use fund generated by operating activities and bank and other loans. On June 31, 2018, the total credit line of the Group was RMB5,890,000,000, with RMB3,039,830,000 unused (December 31, 2017: RMB2,538,021,800).
Financial liabilities and excluded guarantees held by the Group by undiscounted residual contract cash flow (in RMB10,000) at the end of the period:
||||||
|-|-|-|-|-|
||Closing amount||||
|Assets|Less than 1 year|Within 1-3 years|Over 3 years|Total|
|Financial liabilities:|||||
|Short-term loans|52,400.00|||52,400.00|
|Notes payable|49,135.83|||49,135.83|
|Account payable|78,390.47|7,865.42|10.03|86,265.92|
|Employees’ wagepayable|1,987.38|||1,987.38|
|Interest payable|241.23|||241.23|
|Other payables|25,077.15|30,296.25|3,343.43|58,716.83|
|Non-current liabilities due in 1year|20,000.00|||20,000.00|
|Other current liabilities|1207.61|||1207.61|
|Long-term loans|50,000.00|70,000.00|9,397.82|129,397.82|
|Total liabilities|278,439.67|108,161.67|12,751.28|399,352.62|

 Financial liabilities and excluded guarantees held by the Group by undiscounted residual contract cash flow (in RMB10,000) at the beginning of the period:
||||||
|-|-|-|-|-|
||Opening amount||||
|Assets|Less than 1 year|Within 1-3 years|Over 3 years|Total|
|Financial liabilities:|||||
|Short-term loans|61,600.00|||59,100.00|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||||
|-|-|-|-|-|
|Notes payable|53,292.10|||53,292.10|
|Account payable|87,896.56|6,732.71|9.96|94,639.23|
|Employees’ wage payable|4,039.91|||4,039.91|
|Interest payable|242.53|||242.53|
|Other payables|15,533.63|31,241.89|3,343.43|50,118.95|
|Non-current liabilities due in 1 year|20,000.00|||20,000.00|
|Other current liabilities|953.10|||953.10|
|Long-term payable||80,000.00|9,397.82|89,397.82|
|Total liabilities|243,557.83|117,974.60|12,751.21|374,283.64|

 (3) Market risk
Market risk of financial instrument is caused by changes in the fair value of financial instruments or future cash flow, including interest risk, exchange rate and other price risks.
Interest rate risk is caused by fluctuation of the fair value or future cash flow of financial instruments caused by changes in the market interest rate. The interest rate risk can be caused by recognized interest-bearing financial instruments and unrecognized financial instruments.
The Group's interest rate risk is mainly caused by short-term borrowings, other current liabilities and long-term borrowings. 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. All financial liabilities of the Group at the end of the period bear fixed interest rawtes.
The Group pays close attention to the risks of changing interest rates. The Group adopts no hedging policies currently. The management is responsible for monitoring the interest risks. As fixed deposits are short-term borrowing, the interest rate risk of the fair value of bank deposit is minor.
As there is no floating interest rate borrowing during the current period, if the borrowing rate calculated with floating interest rate rises or falls by 50 basis points, while other factors remain unchanged, the Group's net profit and shareholders' equity will remain unchanged on June 30, 2018 (December 31, 2017: RMB 0.00).
Exchange rate risk
Exchange rate risk is caused by fluctuation of the fair value or future cash flow of financial instruments caused by changes in the foreign exchange rates. The exchange rate risk can be caused by financial instruments priced in foreign currencies.
The principal operations of the Group are located in the territory of China. Except for subsidiaries established in Hong Kong and Australia which hold foreign currency as assets in settlement currency, the principal business is settled in RMB. The proportion of foreign assets and liabilities held by the Group in the overall assets and liabilities is not significant. Therefore, the market risk of foreign exchange changes undertaken by the Company is not significant.
See Note VII. 57 Foreign Currency Item Note for theGroup’s financial assets and liabilities priced in foreign currencies.
Other price risks
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. Other price risks refer to risks of fluctuations caused by changes to market prices, regardless of whether the changes are caused by factors related to a single financial tool or issuer, or factors related to all similar financial tools traded in the market. Other price risks come from changes in product prices or equity tool prices.
The Group's investment in financial assets classified as fair value through changes in fair value through profit or loss, and investment properties measured in fair value are measured at fair value on the balance sheet date. Therefore, the Group bears risks of changes in the securities market and real estate market prices.
The Group closely follows impacts of price changes to theCompany’s securities investment price and real estate price risks. The Group takes no measure to prevent other price risks currently.The management is responsible for monitoring the other price risks. 2. Capital management
TheGroup’s capital management aims to ensure continuous operation of the Group, provide returns for shareholders, help other interested parties make benefit, and maintain the best capital structure and lower capital cost.
The Group may adjust the dividend distributed to shareholders, issue new shares or sell assets to maintain or adjust the capital structure.
The Group monitors the capital structure based on the assets/liability ratio. On June 30, 2018, theGroup’s assets/liability ratio is58.32% (December 31, 2017:57.52%).
XI. 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|||||
|(2) Investment real estate||1,569,981,849.07||1,569,981,849.07|
|2. Leased building||1,569,981,849.07||1,569,981,849.07|
|Total assets measured at|||||
|||1,569,981,849.07||1,569,981,849.07|
|fair value continuously|||||
|Derivative|||||
||2,050,625.00|||2,050,625.00|
|financial liabilities|||||
|Total assets measured at|||||
||2,050,625.00|||2,050,625.00|
|fair value continuously|||||
|2. Discontinuous fair|--|--|--|--|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||
|-|
|value measurement|

2. Recognition basis of market value of continuous and discontinuous items measured at first level fair value
The Group determines the fair value using quotation in an active market for financial instruments traded in an active market; Valuation technique and qualitative and quantitative information for key parameters of continuous and discontinuous second level fair value items
For investment in real estate similar with real estate transaction, the Group uses valuation techniques to determine its fair value. The technique is comparison method. Inputs include transaction date, status, region and other factors.
4. Switch between different levels, switch reason and switching time policy
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.
5. 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.
The difference between book value and fair value of financial assets and liabilities not measured at fair value is small.
XII. Related Parties and Transactions
1. Parent of the Company
|||||||
|-|-|-|-|-|-|
|||||Share of the parent|Voting power of the|
|Parent|Registered address|Business|Registered capital|||
|||||co. in the Company|parent company|
|Shenzhen Banglin||||||
|Technologies||||||
||Shenzhen|Industrial investment|30,000,000.00|8.72%|8.72%|
|Development Co.,||||||
|Ltd.||||||
|Shengjiu Investment||||||
||Hong Kong|Industrial investment|HKD1,000,000.00|7.76%|7.76%|
|Ltd.||||||
|Gong Qing Cheng||||||
|Shi Li He||||||
|Investment|Jiujiang|Industrial investment|19,780,992.00|2.26%|2.26%|
|Management||||||
|Partnership||||||

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||
|-|
|Enterprise (limited|
|partner)|

Particulars about the parent of the Company
1. All of the investors of Shenzhen Banglin Technology Development Co., Ltd., the holding shareholder of the Company, are natural persons. Among them, Chairman Xiong Jianming is holding85% of the shares, and Mr. Xiong Xi– son of Mr. Xiong Jianming, is holding15% of the shares.
2. Among the top 10 shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu Investment Co., Ltd. are parties action-in-concert. Shenzhen Banglin Technology Development Co., Ltd. and Gong Qing Cheng Shi Li He Investment Management Partnership Enterprise are related parties. The Company is not notified of other action-in-concert or related parties among the other holders of current shares.
The final controller of the Company is Xiong Jianming.
Others:
2. Subsidiaries of the Company
See Note IX. 1.
3. Joint ventures and associates
See Note IX. 2 for details of significant joint ventures and associates of the Company.
Information about other joint ventures or associates with related transactions in this period or with balance generated by related transactions in previous period:
|||
|-|-|
|Joint venture or associate|Relationship with the Company|
|Shenzhen Ganshang Joint Investment Co., Ltd.|Associate|
|Shenzhen Huihai Yirong Internet Service Co., Ltd.|Associate|
|Jiangxi Business Innovative Property Joint Stock Co., Ltd.|Associate|

Other note
4. Other associates
|||
|-|-|
|Other related parties|Relationship with the Company|
|Directors, manager, CFO and secretary of the Board of Directors|Key management|
|Shenzhen Qijian Technology Co., Ltd.|Common actual controller|

Other note
5. Related transactions
(1) Related transactions for purchase and sale of goods, provision and acceptance of services
Purchasing of goods and services
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. In RMB
|||||||
|-|-|-|-|-|-|
|||Amount occurred||Whether the||
||||||Occurred in previous|
|Affiliated party|Related transaction|in the current|Approved amount|transaction amount is||
||||||period|
|||period||exceeded||

Sales of goods and services
In RMB
|||||
|-|-|-|-|
|||Amount occurred in the||
|Affiliated party|Related transaction||Occurred in previous period|
|||current period||
|Shenzhen Ganshang Joint|Property service and sales of|||
|||5,060.89|5,060.89|
|Investment Co., Ltd.|goods|||
|Shenzhen Qijian Technology|Property service and sales of|||
|||15,209.97|5,071.79|
|Co., Ltd.|goods|||

Notes about related transactions for purchase and sale of goods, provision and acceptance of services
(2) Related leasing
The Company is the leasor:
In RMB
|||||
|-|-|-|-|
|Name of the leasee|Category of asset for lease|Rental recognized in the period|Rental recognized in the period|
|Shenzhen Ganshang Joint||||
||Houses & buildings|65,040.67|62,170.38|
|Investment Co., Ltd.||||
|Shenzhen Qijian Technology||||
||Houses & buildings|134,808.00|44,936.00|
|Co., Ltd.||||

The Company is the leasee:
In RMB
|||||
|-|-|-|-|
||||Rental recognized in previous|
|Name of the owner|Category of asset for lease|Rental recognized in the period||
||||period|

Note to related leasing
(3) Related guarantees
The Company is the guarantor:
In RMB
||||||
|-|-|-|-|-|
|Beneficiary party|Amount guaranteed|Start date|Due date|Completed or not|
|Fangda Jianke|48,000.00|06.07.16|15.07.18|No|
|Fangda Jianke|40,000.00|06.12.17|06.12.18|No|
|Fangda Jianke|30,000.00|23.08.17|22.08.18|No|
|Fangda Jianke|40,000.00|01.11.17|01.11.18|No|
|Fangda Jianke|20,000.00|10.04.18|09.04.19|No|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||||
|-|-|-|-|-|
|Fangda Automatic|21,600.00|06.07.16|05.07.18|No|
|Fangda Automatic|15,000.00|31.10.17|31.10.18|No|
|Fangda Automatic|20,000.00|23.08.17|22.08.18|No|
|Fangda Automatic|15,000.00|08.03.18|08.03.19|No|
|Fangda Property|130,000.00|03.02.15|02.02.23|No|
|Jiangxi New Material|8,000.00|27.05.17|26.05.18|No|
|Jiangxi New Material|6,500.00|01.06.18|31.05.19|No|

The Company is the guarantied party:
In RMB
||||||
|-|-|-|-|-|
|Gurantor|Amount guaranteed|Start date|Due date|Completed or not|
|Fangda Jianke|25,000.00|26.09.17|26.09.18|No|

Note to related guarantees
The above-mentioned guarantees are all associated guarantees within interested entities of the Group.
(4) Remuneration of key management
In RMB
||||
|-|-|-|
|Item|Amount occurred in the current period|Occurred in previous period|
|Wage, remuneration and subsidy|3,899,726.00|2,601,833.77|

 6. Receivable and payables due with related parties
(1) Receivable interest
In RMB
|||||||
|-|-|-|-|-|-|
|||Closing balance||Opening balance||
|Project|Affiliated party|Remaining book||Remaining book||
||||Bad debt provision||Bad debt provision|
|||value||value||
|Other receivables|Shenzhen Woke|865,802.94|233,740.88|865,802.94|86,580.29|
|Other receivables|Shenyang Fangda|42,877.00|1,286.31|42,877.00|1,286.31|
|Account receivable|Qijian Technology|811.31|8.11|735.00|7.35|

 XIII. Share Payment
1. Overall share payment
□ Applicable√ Inapplicable
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. 2. Share payment settled by equity
□ Applicable√ Inapplicable
3. Share payment settled by cash
□ Applicable√ Inapplicable
4. Revising and termination of share payment
5. Others
XIV. Commitment and Contingent Events
1. Major commitments
Major commitments that exist on the balance sheet day
The Company has no other commitments that should be disclosed by 30.06.18.
2. Contingencies
(1) Significant contingencies on the balance sheet date
a. Contingent liabilities formed by material lawsuit or arbitration, and their influences on the financial position
In February 2018, Fangda Jianke, a subsidiary of the Group, filed an arbitration application with the Guangzhou Arbitration Commission of China, requesting Guangzhou Heyin Plaza Development Co. Ltd. and Hunan Provincial No. 4 Engineering Co. Ltd. to pay construction and losses of RMB 21.43 million. As of the date of this report, this arbitration application has been accepted and has not yet been decided.
b. Pending major lawsuits
On September 6, 2017, Chenghua District People's Court of Chengdu Municipality sentenced Sichuan Chuta Hengyuan Industrial Co., Ltd. to pay construction money to Fangda Jianke within 10 days from the date of the verdict川0108民初1828号 RMB10,242,182.99.As of the date of this report, Fangda Jianke has applied for execution and has not received the relevant payment. One June 21, 2018, the Chongqing No. 1 Intermediate People's Court sentenced Wang Weihong to the Fangda Jianke Company for payment of RMB928,167.75 within 10 days from the effective date of the Judgment of the First Judgment No. 01205.As of the date of this report, Fangda Jianke has applied for execution and has not received the relevant payment.
c. Providing guarantee for property purchasers
TheGroup’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. By June 30, 2018, the Company has provided periodic guarantee of RMB413 million.
On 30.06.18, the Company has no other contingent events that should be disclosed.
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. (2) Significant contingent events that do not need to be disclosed should be explained
No such significant contingent event
3. Others
XV. 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. TheGroup’s management regularly review the operating results of the reporting segments to determine resource distribution and evaluate their performance.
The reporting segments are:
(1) Curtain wall segment, production and sales of curtain wall materials, construction curtain wall design, production and installation; (2) Rail transport segment: assembly and processing of metro screen doors;
(3) Real estate segment: development and operating of real estate on land of which land use right is legally obtained by the Company; property management;
(4) New energy segment,R&D, installation and sales of PV devices, design and construction of PV power plants;R&D, design, production, sales and installation of light accessories, and other lights, LED products and hardware.
(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 between||
|Item|Curtain wall|Rail transport|Real estate|New energy|Others||Total|
|||||||segments||
|Major business|||||||1,426,207,018.|
||810,053,775.15|129,911,419.20|477,125,957.64|11,321,020.09||-2,205,153.72||
|turnover|||||||36|
|Main business||||||||
||706,142,044.98|100,399,942.26|126,331,507.32|3,694,831.29||-11,261,439.25|925,306,886.60|
|cost||||||||

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. XVI. Notes to Financial Statements of the Parent
1. Account receivable
(1) Account receivable disclosed by categories
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
||Remaining book|||||Remaining book|||||
||||Bad debt provision|||||Bad debt provision|||
|Type|value||||Book|value|||||
|||||||||||Book value|
|||Proportio||Provision|value||Proportio||Provision||
||Amount||Amount|||Amount||Amount|||
|||n||rate|||n||rate||
|Recognition and|||||||||||
|||||||420,777|||||
|providing of bad debt|||||||100.00%|12,623.34|3.00%|408,154.54|
|||||||.88|||||
|provisions on groups|||||||||||
|||||||420,777||||408,154.54|
|Total|||||||100.00%|12,623.34|3.00%||
|||||||.88|||||

Account receivable with major individual amount and bad debt provision provided individually at the end of the period:
□ Applicable√ Inapplicable
In the group, the account receivable of which bad debt provision is made through the account aging method:
√ Applicable□ Inapplicable
In RMB
|||||
|-|-|-|-|
||Closing balanceAccount receivable Bad debt provision Provision rate|||
|Age||||
|||Bad debt provision|Provision rate|
|Sub-item of within 1 year||||

Group recognition basis:
Account receivable adopting the balance percentage method in the group
□ Applicable√ Inapplicable
Account receivable adopting other methods in the group:
(2) Bad debt provision made, returned or recovered in the period
A bad debt provision of RMB0 was made in the period. RMB12,623.34 was recovered or reversed.
Including significant recovery or reversal:
In RMB
||||
|-|-|-|
|Entity|Written-back or recovered amount|Method|
|None|||

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD. 2. Other receivables
(1) Other receivables disclosed by categories
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
||Remaining book|||||Remaining book|||||
||||Bad debt provision|||||Bad debt provision|||
|Type|value||||Book|value|||||
|||||||||||Book value|
|||Proportio||Provision|value||Proportio||Provision||
||Amount||Amount|||Amount||Amount|||
|||n||rate|||n||rate||
|Other receivables|||||||||||
|with major individual|||||||||||
||13,110,000.00||13,110,0|||13,150,||13,150,00|||
|amount and bad debt||1.92%||100.00%|||1.92%||100.00%||
||||00.00|||000.00||0.00|||
|provision provided|||||||||||
|individually|||||||||||
|(2) Recognition and|||||||||||
||943,177,661.95||337,483.||942,840,1|672,959||186,183.1||672,773,78|
|providing of bad debt||98.08%||0.04%|||98.08%||0.03%||
||||38||78.57|,963.61||6||0.45|
|provisions on groups|||||||||||
||956,287,661.95||13,447,4||942,840,178.57|686,109||13,336,18||672,773,780.45|
|Total||100.00%||1.43%|||100.00%||1.94%||
||||83.38|||,963.61||3.16|||

 Other receivables with major individual amount and bad debt provision provided individually at the end of the period:
√ Applicable□ Inapplicable
In RMB
||||||
|-|-|-|-|-|
|Other receivables (by|Closing balance||||
|entity)|Other receivables|Bad debt provision|Provision rate|Reason|
|Guangdong Fangda||||Cannot be recovered|
||13,110,000.00|13,110,000.00|100.00%||
|SOZN Lighting Co., Ltd.||||because of insolvency|
|Total|13,110,000.00|13,110,000.00|--|--|

In the group, the other receivables of which bad debt provision are made through the account aging method:
√ Applicable□ Inapplicable
In RMB
|||||
|-|-|-|-|
||Closing balance|||
|Age||||
||Other receivables|Bad debt provision|Provision rate|
|Sub-item of within 1 year||||
|Subtotal for less than 1 year|101,431.88|3,042.96|3.00%|
|1-2 years|130,000.00|13,000.00|10.00%|
|2-3 years|735,802.94|220,740.88|30.00%|
|Over 5 years|100,699.54|100,699.54|100.00%|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|Total|1,067,934.36|337,483.38|

Group recognition basis:
Other receivables adopting the balance percentage method in the group:
□ Applicable√ Inapplicable
Other receivables adopting other methods in the group
□ Applicable√ Inapplicable
(2) Bad debt provision made, returned or recovered in the period
A bad debt provision of RMB111,300.22 was made in the period. RMB0.00 was recovered or reversed.
(3) Other receivables are disclosed by nature
In RMB
||||
|-|-|-|
|By nature|Closing balance of book value|Opening balance of book value|
|Associate accounts|942,109,727.59|671,896,683.41|
|Other trades|14,177,934.36|14,213,280.20|
|Total|956,287,661.95|686,109,963.61|

 (4) Balance of top 5 other receivables at the end of the period
In RMB
|||||||
|-|-|-|-|-|-|
||||||Balance of bad debt|
|Entity|By nature|Closing balance|Age|Percentage (%)|provision at the end|
||||||of the period|
|Fangda Jianke|Associate accounts|743,657,276.99|Less than 1 year|77.77%||
|Fangda New Energy|Associate accounts|84,836,258.14|Less than 1 year|8.87%||
|Fangda New Energy|Associate accounts|15,913,329.89|1-2 years|1.66%||
|Fangda Automatic|Associate accounts|55,119,448.33|Less than 1 year|5.76%||
|Shihui International|Associate accounts|30,430,197.80|2-3 years|3.18%||
|Shihui International|Associate accounts|20,271.90|3-4 years|0.00%||
|Fangda SOZN|Associate accounts|13,110,000.00|2-3 years|1.37%|13,110,000.00|
|Total|--|943,086,783.05|--|98.61%|13,110,000.00|

 3. Long-term share equity investment
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item|||||||
||Remaining book|Impairment|Book value|Remaining book|Impairment|Book value|

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||||||
|-|-|-|-|-|-|-|
||value|provision||value|provision||
|Investment insubsidiaries|||||||
||983,339,494.35||983,339,494.35|925,349,494.35||925,349,494.35|
|Total|983,339,494.35||983,339,494.35|925,349,494.35||925,349,494.35|

 (1) Investment in subsidiaries
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||||Balance of|
||||||Provision made in|impairment|
|Invested entity|Opening balance|Increase|Decrease|Closing balance|||
||||||this period|provision at the|
|||||||end of the period|
|Fangda Jianke|491,950,000.00|||491,950,000.00|||
|Fangda Automatic|18,831,241.35|||18,831,241.35|||
|Fangda New|||||||
||74,496,600.00|||74,496,600.00|||
|Material|||||||
|Fangda Property|200,000,000.00|||200,000,000.00|||
|Shihui|||||||
|International|61,653.00|||61,653.00|||
|Holding Co., Ltd.|||||||
|Fangda New|||||||
||100,000,000.00|||100,000,000.00|||
|Energy|||||||
|Hongjun|||||||
|Investment|40,010,000.00|57,990,000.00||98,000,000.00|||
|Company|||||||
|Total|925,349,494.35|57,990,000.00||983,339,494.35|||

4. Operational revenue and costs
In RMB
||||||
|-|-|-|-|-|
||Amount occurred in the current period||Occurred in previous period||
|Item|||||
||Income|Cost|Income|Cost|
|Other businesses|15,112,290.20|673,578.25|13,854,120.29|803,595.88|
|Total|15,112,290.20|673,578.25|13,854,120.29|803,595.88|

 Others:
5. Investment income
In RMB
2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|Item|Amount occurred in the current period|Occurred in previous period|
|Gains from long-term equity investment|||
|||-626,631.62|
|measured by equity|||
|Investment gain obtained from disposal of|||
|financial assets measured at fair value with|||
||3,674,941.97||
|variations accounted into current income|||
|account|||
|Investment gain of financial products|4,463,541.25|1,641,303.05|
|Total|8,138,483.22|1,014,671.43|

 XVII. Supplementary Materials
1. Detailed accidental gain/loss
√ Applicable□ Inapplicable
In RMB
||||
|-|-|-|
|Item|Amount|Notes|
|Gain/loss of non-current assets|-1,565,317.62||
|Subsidies accounted into the current income|||
|account (except the government subsidy|||
|closely related to the enterprise’s business|2,185,580.79||
|and based on unified national standard|||
|quota)|||
|Gain from entrusted investment or assets|||
||9,615,882.62||
|management|||
|Gain generated by contingencies irrelevant|||
||8,939,594.68||
|to the Company’s business|||
|Gain/loss from change of fair value of|||
|transactional financial asset and liabilities,|||
|and investment gains from disposal of|||
|transactional financial assets and liabilities|187,445.30||
|and sellable financial assets, other than valid|||
|period value instruments related to the|||
|Company’s common businesses|||
|Gain/loss from change of fair value of|||
|investment property measured at fair value|-323,794.00||
|in follow-up measurement|||
|Other non-business income and expenditures|||
||6,110,628.97||
|other than the above|||
|Other gain/loss items satisfying the|0.40||

2018 Interm Financial Report of CHINA FANGDA GROUP CO., LTD.
||||
|-|-|-|
|definition of non-recurring gain/loss account|||
|Less: Influenced amount of income tax|4,723,476.29||
|Total|20,426,544.85|--|

Explanation statement should be made for accidental gain/loss items defined and accidental
gain/loss items defined as regular gain/loss items according to the Explanation Announcement of Information Disclosure No. 1 - Non-recurring gain/loss mentioned.
□ Applicable√ Inapplicable
2. Net income on asset ratio and earning per share
|||||
|-|-|-|-|
|||Earning per share||
|Profit of the report period|Weighted average net income/asset ratio|Basic earnings per share|Diluted Earnings per|
|||(yuan/share)|share (yuan/share)|
|Net profit attributable to common||0.1944|0.1944|
||6.99%|||
|shareholders of the Company||||
|Net profit attributable to the||||
|common owners of the PLC after||||
||6.37%|0.1772|0.1772|
|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
□ Applicable√ Inapplicable