方大B:2019年半年度财务报告(英文版)

             Interim Financial Statements 2019 of China Fangda Group Co., Ltd.




CHINA FANGDA GROUP CO., LTD.




2019 Financial Statements




         August 2019




                                                                            1
                                                                 Interim Financial Statements 2019 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.
                                                                                                                          In RMB

                   Item                                 June 30, 2019                            December 31, 2018

Current asset:

     Monetary capital                                               1,072,726,726.45                            1,389,062,083.76

     Settlement provision

     Outgoing call loan

     Transactional financial assets                                   200,121,506.67

     Financial assets measured at fair
value with variations accounted into
current income account

     Derivative financial assets                                           17,375.00

     Notes receivable                                                   85,655,871.18                            140,139,692.84

     Account receivable                                             2,118,904,495.79                            1,920,075,031.85

     Receivable financing

     Prepayment                                                         73,540,307.08                              46,454,844.74

     Insurance receivable

     Reinsurance receivable

     Provisions of Reinsurance
contracts receivable

     Other receivables                                                162,536,536.53                             139,990,188.26

        Including: interest receivable                                    366,666.66

                 Dividend receivable

     Repurchasing of financial assets

     Inventory                                                        750,395,540.06                             651,405,832.29



                                                                                                                                   2
                                           Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


     Contract assets

     Assets held for sales

     Non-current assets due in 1 year

     Other current assets                       114,294,388.81                               51,698,111.14

Total current assets                          4,578,192,747.57                            4,338,825,784.88

Non-current assets:

     Loan and advancement provided

     Debt investment

     Sellable financial assets                                                               21,674,008.23

     Other debt investment

     Investment held until mature

     Long-term receivable

     Long-term share equity investment           69,779,924.33                               70,105,657.88

     Investment in other equity tools            21,674,008.23

     Other non-current financial assets

     Investment real estate                   5,285,303,323.58                            5,256,442,406.63

     Fixed assets                               431,948,450.66                             455,274,241.83

     Construction in process                     90,993,650.25                               58,269,452.72

     Productive biological assets

     Gas & petrol

     Use right assets

     Intangible assets                           79,441,627.18                               80,313,240.67

     R&D expense

     Goodwill

     Long-term amortizable expenses               2,476,634.82                                2,114,331.46

     Deferred income tax assets                 357,050,574.16                             356,474,925.76

     Other non-current assets                    23,941,839.67                               19,360,083.67

Total of non-current assets                   6,362,610,032.88                            6,320,028,348.85

Total of assets                              10,940,802,780.45                          10,658,854,133.73

Current liabilities

     Short-term loans                           900,000,000.00                             208,000,000.00

     Loans from Central Bank

     Call loan received

     Transactional financial liabilities



                                                                                                             3
                                            Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


       Financial liabilities measured at
fair value with variations accounted into
current income account

       Derivative financial liabilities                                                        1,625,725.00

       Notes payable                             533,557,330.40                             507,864,518.19

       Account payable                           953,298,396.58                            1,039,630,798.64

       Prepayment received                       132,431,063.25                             278,577,848.54

       Selling of repurchased financial
assets

       Deposit received and held for
others

       Entrusted trading of securities

       Entrusted selling of securities

       Employees' wage payable                    23,925,424.42                               44,513,062.17

       Taxes payable                              21,432,798.90                             107,709,999.19

       Other payables                            836,350,288.81                             813,118,699.84

         Including: interest payable               2,423,014.69                                2,098,971.44

                 Dividend payable

       Fees and commissions payable

       Reinsurance fee payable

       Contract liabilities

       Liabilities held for sales

       Non-current liabilities due in 1
                                                 800,000,000.00                             200,000,000.00
year

       Other current liabilities                  10,023,641.11                                9,328,682.25

Total current liabilities                      4,211,018,943.47                            3,210,369,333.82

Non-current liabilities:

       Insurance contract provision

       Long-term loans                           593,978,153.39                            1,193,978,153.39

       Bond payable

         Including: preferred stock

                 Perpetual bond

       Lease liabilities

       Long-term payable

       Long-term employees’ wage
payable


                                                                                                              4
                                                               Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


     Anticipated liabilities                                             6,672,052.01                             6,831,162.99

     Deferred earning                                                   10,956,741.32                            10,401,161.30

     Deferred income tax liabilities                               1,044,043,233.97                           1,042,086,700.35

     Other non-current liabilities

Total of non-current liabilities                                   1,655,650,180.69                           2,253,297,178.03

Total liabilities                                                  5,866,669,124.16                           5,463,666,511.85

Owner’s equity:

     Share capital                                                 1,123,384,189.00                           1,155,481,686.00

     Other equity tools

        Including: preferred stock

                    Perpetual bond

     Capital reserves                                                    1,454,191.59                             1,454,191.59

     Less: Shares in stock                                                                                       10,831,437.66

     Other miscellaneous income                                          3,605,436.34                             7,382,087.59

     Special reserves

     Surplus reserves                                                   54,042,195.07                          120,475,221.40

     Common risk provisions

     Retained profit                                               3,841,302,110.76                           3,921,225,872.96

Total of owner’s equity belong to the
                                                                   5,023,788,122.76                           5,195,187,621.88
parent company

     Minor shareholders’ equity                                        50,345,533.53

Total of owners’ equity                                           5,074,133,656.29                           5,195,187,621.88

Total of liabilities and owner’s interest                        10,940,802,780.45                         10,658,854,133.73


Legal representative: Xiong Jianming         CFO: Lin Kebing            Accounting Manager: Wu Bohua


2. Balance Sheet of the Parent Company

                                                                                                                        In RMB

                      Item                              June 30, 2019                          December 31, 2018

Current asset:

     Monetary capital                                               101,688,461.26                             410,118,157.55

     Transactional financial assets

     Financial assets measured at fair
value with variations accounted into
current income account



                                                                                                                                 5
                                          Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


     Derivative financial assets

     Notes receivable                          200,000,000.00                             200,000,000.00

     Account receivable                             14,565.67                                  471,039.12

     Receivable financing

     Prepayment                                  1,661,827.83                                6,733,047.16

     Other receivables                       1,320,828,678.84                             822,543,653.04

       Including: interest receivable

                 Dividend receivable           100,000,000.00                             100,000,000.00

     Inventory

     Contract assets

     Assets held for sales

     Non-current assets due in 1 year

     Other current assets                        6,711,425.57                                  919,388.18

Total current assets                         1,630,904,959.17                            1,440,785,285.05

Non-current assets:

     Debt investment

     Sellable financial assets                                                              21,674,008.23

     Other debt investment

     Investment held until mature

     Long-term receivable

     Long-term share equity investment       1,013,339,495.35                             983,339,494.35

     Investment in other equity tools           21,674,008.23

     Other non-current financial assets

     Investment real estate                    309,189,866.37                             309,189,866.37

     Fixed assets                               52,804,391.71                               53,784,811.23

     Construction in process

     Productive biological assets

     Gas & petrol

     Use right assets

     Intangible assets                           1,961,314.57                                2,112,301.97

     R&D expense

     Goodwill

     Long-term amortizable expenses                777,499.64                                  917,499.68

     Deferred income tax assets                 38,972,942.37                               34,555,598.81



                                                                                                            6
                                             Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


       Other non-current assets

Total of non-current assets                     1,438,719,518.24                            1,405,573,580.64

Total of assets                                 3,069,624,477.41                            2,846,358,865.69

Current liabilities

       Short-term loans                           500,000,000.00                             200,000,000.00

       Transactional financial liabilities

       Financial liabilities measured at
fair value with variations accounted into
current income account

       Derivative financial liabilities

       Notes payable

       Account payable                                606,941.85                                  676,941.85

       Prepayment received                            694,791.63                                  733,274.16

       Contract liabilities

       Employees' wage payable                      1,001,120.09                                2,145,763.39

       Taxes payable                                  819,162.49                                  341,004.65

       Other payables                             450,775,536.65                             300,006,406.51

         Including: interest payable                1,162,456.96                                  740,208.33

                  Dividend payable

       Liabilities held for sales

       Non-current liabilities due in 1
                                                  500,000,000.00
year

       Other current liabilities

Total current liabilities                       1,453,897,552.71                             503,903,390.56

Non-current liabilities:

       Long-term loans                            100,000,000.00                             500,000,000.00

       Bond payable

         Including: preferred stock

                  Perpetual bond

       Lease liabilities

       Long-term payable

       Long-term employees’ wage
payable

       Anticipated liabilities

       Deferred earning



                                                                                                               7
                                                Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


     Deferred income tax liabilities                     64,030,014.06                            64,130,617.41

     Other non-current liabilities

Total of non-current liabilities                        164,030,014.06                           564,130,617.41

Total liabilities                                  1,617,927,566.77                             1,068,034,007.97

Owner’s equity:

     Share capital                                 1,123,384,189.00                             1,155,481,686.00

     Other equity tools

        Including: preferred stock

                    Perpetual bond

     Capital reserves                                       360,835.52                               360,835.52

     Less: Shares in stock                                                                        10,831,437.66

     Other miscellaneous income                           3,590,127.88                              8,756,553.46

     Special reserves

     Surplus reserves                                    54,042,195.07                           120,475,221.40

     Retained profit                                    270,319,563.17                           504,081,999.00

Total of owners’ equity                           1,451,696,910.64                             1,778,324,857.72

Total of liabilities and owner’s interest         3,069,624,477.41                             2,846,358,865.69


3. Consolidated Income Statement

                                                                                                         In RMB

                       Item                  H1 2019                                  H1 2018

1. Total revenue                                       1,425,890,946.99                         1,442,050,896.53

     Incl. Business income                             1,425,890,946.99                         1,442,050,896.53

              Interest income

              Insurance fee earned

              Fee and commission
received

2. Total business cost                                 1,281,585,400.17                         1,172,057,419.48

     Incl. Business cost                               1,066,065,970.56                          935,486,175.73

              Interest expense

              Fee and commission paid

              Insurance discharge payment

              Net claim amount paid

              Net insurance policy



                                                                                                                   8
                                                Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


reserves provided

               Insurance policy dividend
paid

               Reinsurance expenses

               Taxes and surcharges                   41,481,000.07                             101,204,195.03

               Sales expense                          27,175,638.50                               27,060,141.24

               Administrative expense                 82,678,777.56                               66,539,185.89

               R&D cost                               14,702,673.12                                7,995,399.91

               Financial expenses                     49,481,340.36                               33,772,321.68

                                                                                                  32,139,251.82
                   Including: interest cost           40,476,886.48


                           Interest income             2,439,090.91                                3,715,935.93

        Add: other gains                               4,001,450.51                                2,699,191.58

            Investment gains (“-” for loss)          4,056,397.16                               26,244,762.41

            Incl. Investment gains from
                                                        -325,733.55                               -1,071,000.77
affiliates and joint ventures

                   Financial assets
derecognised as a result of amortized cost
("-" for loss)

            Exchange gains ("-" for loss)

            Net open hedge gains (“-” for
loss)

            Gains from change of fair value
                                                         121,506.67                               -8,896,637.25
(“-“ for loss)

            Credit impairment ("-" for loss)           -4,369,660.38

            Investment impairment loss
                                                                                                  -1,854,963.05
("-" for loss)

            Investment gains ("-" for loss)               -27,108.78                              -1,551,865.58

3. Operational profit ("-" for loss)                 148,088,132.00                             286,633,965.16

        Plus: non-operational income                   4,873,892.15                                7,066,038.41

        Less: non-operational expenditure                378,565.80                                 522,160.43

4. Gross profit ("-" for loss)                       152,583,458.35                             293,177,843.14

        Less: Income tax expenses                     24,019,259.71                               63,046,179.95

5. Net profit ("-" for net loss)                     128,564,198.64                             230,131,663.19

   (1) By operating consistency

        1. Net profit from continuous                128,570,716.39                             230,131,663.19



                                                                                                                  9
                                              Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


operation ("-" for net loss)

     2. Net profit from discontinuous
                                                         -6,517.75
operation ("-" for net loss)

  (2) By ownership

     1. Net profit attributable to the
                                                   128,581,755.01                             230,131,663.19
owners of parent company

     2. Minor shareholders’ equity                     -17,556.37

6. After-tax net amount of other misc.
                                                     1,389,774.33                               -1,879,756.17
incomes

  After-tax net amount of other misc.
                                                     1,389,774.33                               -1,879,756.17
incomes attributed to parent's owner

     (1) Other misc. incomes that cannot
be re-classified into gain and loss

             1. Re-measure the change in
the defined benefit plan

             2. Other comprehensive
income that cannot be transferred to
profit or loss under the equity method

             3. Fair value change of
investment in other equity tools

             4. Fair value change of the
company's credit risk

             5. Others

     (2) Other misc. incomes that will be
                                                     1,389,774.33                               -1,879,756.17
re-classified into gain and loss

             1. Other comprehensive
income that can be transferred to profit or
loss under the equity method

             2. Fair value change of other
debt investment

             3. Change in the fair value of
financial asset for sale

             4. Gains and losses from
changes in fair value of available-for-sale
financial assets

             5. Held-to-mature
investment reclassified as gain and loss in
the financial assets for sales

             6. Other credit investment

                                                                                                            10
                                                                Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


credit impairment provisions

              7. Cash flow hedge reserve                                1,396,635.00                                 -1,839,001.25

              8. Translation difference of
                                                                            -6,860.67                                   -40,754.92
foreign exchange statement

              9. Others

  After-tax net of other misc. income
attributed to minority shareholders

7. Total of misc. incomes                                             129,953,972.97                               228,251,907.02

     Total of misc. incomes attributable
                                                                      129,971,529.34                               228,251,907.02
to the owners of the parent company

     Total misc gains attributable to the
                                                                           -17,556.37
minor shareholders

8. Earnings per share:

     (1) Basic earnings per share                                                0.11                                         0.19

     (2) Diluted earnings per share                                              0.11                                         0.19

Net profit contributed by entities merged under common control in the report period was RMB0.00, net profit realized by parties
merged during the previous period is RMB0.00.


Legal representative: Xiong Jianming          CFO: Lin Kebing          Accounting Manager: Wu Bohua


4. Income Statement of the Parent Company

                                                                                                                           In RMB

                   Item                                    H1 2019                                      H1 2018

1. Turnover                                                            17,142,022.88                                15,112,290.20

     Less: Operation cost                                               3,496,588.06                                   673,578.25

          Taxes and surcharges                                            645,703.49                                   650,802.82

          Sales expense

          Administrative expense                                       11,286,569.85                                10,133,470.85

          R&D cost

          Financial expenses                                           21,369,380.01                                 7,548,692.03

              Including: interest cost                                 17,322,986.12                                 8,550,029.19

                     Interest income                                      351,128.89                                 1,581,410.05

     Add: other gains                                                     234,066.99                                   114,556.59

          Investment gains (“-” for loss)                             1,155,183.42                                 8,138,483.22

          Incl. Investment gains from
affiliates and joint ventures



                                                                                                                                  11
                                               Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


                  Financial assets
derecognised as a result of amortized
cost ("-" for loss)

             Net open hedge gains (“-” for
loss)

             Gains from change of fair
                                                                                                 -3,429,128.73
value (“-“ for loss)

             Credit impairment ("-" for
                                                          4,732.39
loss)

             Investment impairment loss
                                                                                                    -98,676.88
("-" for loss)

             Investment gains ("-" for loss)                                                           -574.06

2. Operational profit (“-” for loss)              -18,262,235.73                                  830,406.39

        Plus: non-operational income                     13,947.68                                  258,644.66

        Less: non-operational expenditure               106,388.64                                      738.00

3. Gross profit (“-” for loss)                    -18,354,676.69                                1,088,313.05

        Less: Income tax expenses                    -4,545,338.46                                1,582,341.85

4. Net profit (“-” for net loss)                  -13,809,338.23                                 -494,028.80

        (1) Net profit from continuous
                                                    -13,809,338.23                                 -494,028.80
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. Re-measure the change
in the defined benefit plan

               2. Other comprehensive
income that cannot be transferred to
profit or loss under the equity method

               3. Fair value change of
investment in other equity tools

               4. Fair value change of the
company's credit risk

               5. Others

        (2) Other misc. incomes that will


                                                                                                             12
                                                  Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


be re-classified into gain and loss

              1. Other comprehensive
income that can be transferred to profit
or loss under the equity method

              2. Fair value change of
other debt investment

              3. Change in the fair value
of financial asset for sale

              4. Gains and losses from
changes in fair value of
available-for-sale financial assets

              5. Held-to-mature
investment reclassified as gain and loss
in the financial assets for sales

              6. Other credit investment
credit impairment provisions

              7. Cash flow hedge reserve

              8. Translation difference of
foreign exchange statement

              9. Others

6. Total of misc. incomes                                -13,809,338.23                               -494,028.80

7. Earnings per share:

       (1) Basic earnings per share

       (2) Diluted earnings per share


5. Consolidated Cash Flow Statement

                                                                                                           In RMB

                     Item                      H1 2019                                H1 2018

1. Net cash flow from business operations:

       Cash received from sales of products        1,201,792,721.87                           1,344,633,305.24
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



                                                                                                                 13
                                               Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


     Cash received against original
insurance contract

     Net cash received from reinsurance
business

     Net increase of client deposit and
investment

     Cash received as interest, processing
fee, and commission

     Net increase of inter-bank fund
received

     Net increase of repurchasing business

     Net cash received from trading
securities

     Tax refunded                                   1,495,878.35                                 876,405.15

     Other cash received from business            48,007,747.43                              243,292,723.31
operation

     Sub-total of cash inflow from business    1,251,296,347.65                            1,588,802,433.70
operations

     Cash paid for purchasing products and       977,060,414.15                              956,677,112.92
services

     Net increase of client trade and
advance

     Net increase of savings in central bank
and brother company

     Cash paid for original contract claim

     Net increase in financial assets held
for trading purposes

     Net increase in funds dismantled

     Cash paid for interest, processing fee
and commission

     Cash paid for policy dividend

     Cash paid to and for the staff              162,220,114.55                              141,086,415.75

     Taxes paid                                  177,525,390.09                              208,947,437.06

     Other cash paid for business activities     307,215,431.97                              313,517,735.61

Sub-total of cash outflow from business        1,624,021,350.76                            1,620,228,701.34
operations

Cash flow generated by business                  -372,725,003.11                             -31,426,267.64
operations, net


                                                                                                              14
                                                Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


2. Cash flow generated by investment:

     Cash received from investment              2,093,521,250.01                            4,675,800,000.00
recovery

     Cash received as investment profit            21,362,317.22                               28,989,224.36

     Net cash retrieved from disposal of           13,165,854.60                                9,501,692.00
fixed assets, intangible assets, and other
long-term assets

     Net cash received from disposal of
subsidiaries or other operational units

     Other investment-related cash received

Sub-total of cash inflow generated from         2,128,049,421.83                            4,714,290,916.36
investment

     Cash paid for construction of fixed           90,816,069.59                               45,443,864.13
assets, intangible assets and other long-term
assets

     Cash paid as investment                    2,555,019,000.00                            4,712,583,785.00

     Net increase of loan against pledge

     Net cash paid for acquiring                   61,934,830.31
subsidiaries and other operational units

     Other cash paid for investment

Subtotal of cash outflows                       2,707,769,899.90                            4,758,027,649.13

Cash flow generated by investment                -579,720,478.07                              -43,736,732.77
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 loans            800,000,000.00                              508,000,000.00

     Cash received from bond placing

     Other cash received from financing                 39,406.61
activities

Subtotal of cash inflow from financing            800,039,406.61                              508,000,000.00
activities

     Cash paid to repay debts                     108,000,000.00                              200,000,000.00

     Cash paid as dividend, profit, or            275,410,279.99                              213,616,393.31
interests


                                                                                                               15
                                                    Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


     Incl. Dividend and profit paid by
subsidiaries to minority shareholders

     Other cash paid for financing activities             40,000,000.00

Subtotal of cash outflow from financing               423,410,279.99                              413,616,393.31
activities

Net cash flow generated by financing                  376,629,126.62                                94,383,606.69
activities

4. Influence of exchange rate changes on                    -229,009.27                              1,005,803.87
cash and cash equivalents

5. Net increase in cash and cash equivalents          -576,045,363.83                               20,226,410.15

     Plus: Balance of cash and cash                   956,190,890.68                              931,285,535.55
equivalents at the beginning of term

6. Balance of cash and cash equivalents at            380,145,526.85                              951,511,945.70
the end of the period


6. Cash Flow Statement of the Parent Company

                                                                                                             In RMB

                   Item                         H1 2019                                   H1 2018

1. Net cash flow from business
operations:

      Cash received from sales of
                                                            14,039,967.56                            147,110,597.39
products and providing of services

      Tax refunded

      Other cash received from business
                                                          1,674,530,421.33                           882,838,625.05
operation

Sub-total of cash inflow from business
                                                          1,688,570,388.89                          1,029,949,222.44
operations

      Cash paid for purchasing products
                                                             1,824,577.30                                409,933.49
and services

      Cash paid to and for the staff                         8,465,407.93                              7,664,913.27

      Taxes paid                                             1,250,265.96                             14,786,626.11

      Other cash paid for business
                                                          2,021,264,885.71                          1,276,945,197.63
activities

Sub-total of cash outflow from business
                                                          2,032,805,136.90                          1,299,806,670.50
operations

Cash flow generated by business
                                                          -344,234,748.01                           -269,857,448.06
operations, net



                                                                                                                    16
                                             Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


2. Cash flow generated by investment:

     Cash received from investment
                                                  710,000,000.00                            1,879,880,000.00
recovery

     Cash received as investment profit             1,155,183.42                                9,159,483.22

     Net cash retrieved from disposal of
fixed assets, intangible assets, and other
long-term assets

     Net cash received from disposal of
subsidiaries or other operational units

     Other investment-related cash
                                                                                               10,000,000.00
received

Sub-total of cash inflow generated from
                                                  711,155,183.42                            1,899,039,483.22
investment

     Cash paid for construction of fixed
assets, intangible assets and other                    50,698.00                                  421,910.00
long-term assets

     Cash paid as investment                      746,000,001.00                            1,917,870,000.00

     Net cash paid for acquiring
subsidiaries and other operational units

     Other cash paid for investment

Subtotal of cash outflows                         746,050,699.00                            1,918,291,910.00

Cash flow generated by investment
                                                  -34,895,515.58                              -19,252,426.78
activities, net

3. Cash flow generated by financing
activities:

     Cash received from investment

     Cash received from borrowed
                                                  400,000,000.00                             500,000,000.00
loans

     Cash received from bond placing

     Other cash received from financing
                                                       39,406.61
activities

Subtotal of cash inflow from financing
                                                  400,039,406.61                             500,000,000.00
activities

     Cash paid to repay debts

     Cash paid as dividend, profit, or
                                                  241,065,709.32                             180,947,316.65
interests

     Other cash paid for financing
activities


                                                                                                           17
                                                                           Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


Subtotal of cash outflow from financing
                                                                                 241,065,709.32                               180,947,316.65
activities

Net cash flow generated by financing
                                                                                 158,973,697.29                               319,052,683.35
activities

4. Influence of exchange rate changes
                                                                                           405.76
on cash and cash equivalents

5. Net increase in cash and cash
                                                                                 -220,156,160.54                               29,942,808.51
equivalents

       Plus: Balance of cash and cash
                                                                                 281,594,621.80                               310,049,329.68
equivalents at the beginning of term

6. Balance of cash and cash equivalents
                                                                                  61,438,461.26                               339,992,138.19
at the end of the period


7. Statement of Change in Owners’ Equity (Consolidated)

Amount of the Current Term
                                                                                                                                       In RMB

                                                                                 H1 2019

                                              Owners’ Equity Attributable to the Parent Company
                                                                                                                                       Total
                              Other equity tools                      Other                                                   Minor
                                                             Less:              Specia Surplu Comm                                      of
       Item                                                           miscell                                                 shareh
                    Share                          Capital                                           Retain
                                                       Shares           l       s    on risk            Subtot          owners
                              Prefe Perpe                                                                      olders’
                    capita               Other reserve        aneous                          ed Others
                               rred tual                 in          reserve reserve provisi              al              ’
                      l                    s      s           incom                          profit            equity
                              share bond               stock            s       s      ons                              equity
                                                                 e

                    1,155
1. Balance at                                                10,831                    120,47        3,921,          5,195,            5,195,
                     ,481,                          1,454,            7,382,
the end of last                                              ,437.6                    5,221.        225,87         187,62             187,62
                    686.0                          191.59             087.59
year                                                             6                          40         2.96            1.88              1.88
                          0

       Plus:
                                                                                                     16,171         11,529             11,529
Changes in                                                            -5,166,          524,86
                                                                                                     ,320.5          ,755.0            ,755.0
accounting                                                            425.58             0.03
                                                                                                          8               3                  3
policies


Correction of
previous errors


Consolidation
of entities under
common control




                                                                                                                                               18
                                                 Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


Others

                   1,155
2. Balance at                       10,831                 121,00          3,937,          5,206,            5,206,
                   ,481,   1,454,            2,215,
the beginning of                    ,437.6                  0,081.         397,19         717,37             717,37
                   686.0   191.59            662.01
current year                            6                       43           3.54            6.91              6.91
                      0

3. Change
amount in the      -32,0            -10,83                  -66,95         -96,09          -182,9 50,345 -132,5
                                             1,389,
current period     97,49            1,437.                  7,886.         5,082.         29,254 ,533.5 83,720
                                             774.33
(“-“ for          7.00               66                       36             78             .15       3       .62
decrease)

                                                                           128,58         129,97             129,95
(1) Total of                                 1,389,                                                 -17,55
                                                                           1,755.          1,529.            3,972.
misc. incomes                                774.33                                                  6.37
                                                                               01             34                97

(2) Investment
                   -32,0            -10,83                  -66,95                         -88,22 50,363 -37,86
or decreasing of
                   97,49            1,437.                  7,886.                         3,945. ,089.9 0,855.
capital by
                    7.00               66                       36                            70        0       80
owners

1. Common          -32,0            -10,83                  -66,95                         -88,22 50,363 -37,86
shares invested    97,49            1,437.                  7,886.                         3,945. ,089.9 0,855.
by owners           7.00               66                       36                            70        0       80

2. Capital
contributed by
other equity
instrument
holders

3. Amount of
shares paid and
accounted as
owners' equity

4. Others

                                                                           -224,6          -224,6            -224,6
(3) Profit
                                                                           76,837         76,837             76,837
allotment
                                                                              .80             .80               .80

1. Provision of
surplus reserves

2. Common risk
provision

3. Distribution                                                           -224,6          -224,6            -224,6
to owners (or                                                              76,837         76,837             76,837
shareholders)                                                                 .80             .80               .80



                                                                                                                  19
                                                              Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


4. Others

(4) Internal
transferring of
owners’ equity

1. Capitalizing
of capital
reserves (or
share capital)

2. Capitalizing
of surplus
reserves (or
share capital)

3. Surplus
reserves used to
cover losses

4. Retained gain
transferred due
to change in set
benefit program

5. Other
miscellaneous
income

6. Others

(5) Special
reserves

1. Provided this
year

2. Used this
period

(6) Others

                   1,123
4. Balance at                                                            54,042            3,841,       5,023, 50,345 5,074,
                    ,384,                  1,454,         3,605,
the end of this                                                           ,195.0           302,11      788,12 ,533.5 133,65
                   189.0                  191.59          436.34
period                                                                         7             0.76         2.76      3    6.29
                       0

Amount of the Previous Term
                                                                                                                        In RMB

                                                                   H1 2018

       Item                           Owners’ Equity Attributable to the Parent Company                      Minor Total of
                   Share Other equity tools Capital Less: Other Specia Surplu Comm Retain Others Subtot shareho owners’



                                                                                                                            20
                                                                       Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


                  capita                         reserve Shares miscell    l       s        on risk    ed          al        lders’   equity
                            Prefe Perp
                    l                    Other     s        in   aneous reserve reserve provisi profit                       equity
                            rred etual
                                           s               stock incom     s       s         ons
                            share bond
                                                                   e

                  1,183
1. Balance at                                    72,829                         110,69                1,863,     3,238,                3,238,9
                  ,642,                                          8,585,
the end of last                                  ,484.9                          0,396.               191,21     939,20                39,202.
                  254.0                                          847.99
year                                                   6                               65               8.58       2.18                    18
                        0

       Plus:
Changes in
accounting
policies


Correction of
previous errors


Consolidation
of entities
under common
control


Others

                  1,183
2. Balance at                                    72,829                         110,69                1,863,     3,238,                3,238,9
                  ,642,                                          8,585,
the beginning                                    ,484.9                          0,396.               191,21     939,20                39,202.
                  254.0                                          847.99
of current year                                        6                               65               8.58       2.18                    18
                        0

3. Change
amount in the                                                                                         52,585     50,705
                                                                 -1,879,                                                               50,705,
current period                                                                                        ,325.0     ,568.9
                                                                 756.17                                                                 568.92
(“-“ for                                                                                                  9           2
decrease)

                                                                                                      230,13     228,25
(1) Total of                                                     -1,879,                                                               228,251
                                                                                                      1,663.     1,907.
misc. incomes                                                    756.17                                                                ,907.02
                                                                                                            19          02

(2) Investment
or decreasing
of capital by
owners

1. Common
shares invested
by owners



                                                                                                                                            21
                   Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


2. Capital
contributed by
other equity
instrument
holders

3. Amount of
shares paid and
accounted as
owners' equity

4. Others

                                            -177,5         -177,5          -177,54
(3) Profit
                                            46,338         46,338          6,338.1
allotment
                                               .10            .10                0

1. Provision of
surplus reserves

2. Common
risk provision

3. Distribution                             -177,5         -177,5          -177,54
to owners (or                               46,338         46,338          6,338.1
shareholders)                                  .10            .10                0

4. Others

(4) Internal
transferring of
owners’ equity

1. Capitalizing
of capital
reserves (or
share capital)

2. Capitalizing
of surplus
reserves (or
share capital)

3. Surplus
reserves used to
cover losses

4. Retained
gain transferred
due to change
in set benefit
program



                                                                                 22
                                                                      Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


5. Other
miscellaneous
income

6. Others

(5) Special
reserves

1. Provided this
year

2. Used this
period

(6) Others

                     1,183
4. Balance at                                  72,829                           110,69         1,915,            3,289,       3,289,6
                     ,642,                                       6,706,
the end of this                                ,484.9                            0,396.        776,54            644,77       44,771.
                     254.0                                      091.82
period                                                 6                               65        3.67              1.10               10
                        0


8. Statement of Change in Owners’ Equity (Parent Company)

Amount of the Current Term
                                                                                                                               In RMB

                                                                             H1 2019

                                  Other equity tools                           Other
                                                                     Less:                                                  Total of
        Item          Share Preferr Perpet       Capital           miscella Special Surplus Retaine
                                                         Shares in                                   Others                 owners’
                      capital  ed    ual Others reserves            neous reserves reserves d profit
                                                          stock                                                              equity
                              share bond                           income

                      1,155,4                                                                                504,08
1. Balance at the                                          360,835. 10,831,4 8,756,55           120,475,                   1,778,324,
                      81,686.                                                                                1,999.0
end of last year                                                52    37.66       3.46            221.40                       857.72
                             00                                                                                   0

       Plus:
Changes in                                                                    -5,166,4          524,860. 4,723,7
                                                                                                                            82,174.65
accounting                                                                       25.58                  03    40.20
policies


Correction of
previous errors

            Others

2. Balance at the 1,155,4                                                                                    508,80
                                                           360,835. 10,831,4 3,590,12           121,000,                   1,778,407,
beginning of          81,686.                                                                                5,739.2
                                                                52    37.66       7.88            081.43                       032.37
current year                 00                                                                                   0



                                                                                                                                       23
                                Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


3. Change
amount in the                                                        -238,48
                     -32,097   -10,831,                   -66,957,                   -326,710,1
current period                                                       6,176.0
                     ,497.00    437.66                      886.36                        21.73
(“-“ for                                                                3
decrease)

(1) Total of misc.                                                   -13,809         -13,809,33
incomes                                                              ,338.23               8.23

(2) Investment or
decreasing of        -32,097   -10,831,                   -66,957,                   -88,223,94
capital by           ,497.00    437.66                      886.36                         5.70
owners

1. Common
                     -32,097   -10,831,                   -66,957,                   -88,223,94
shares invested
                     ,497.00    437.66                      886.36                         5.70
by owners

2. Capital
contributed by
other equity
instrument
holders

3. Amount of
shares paid and
accounted as
owners' equity

4. Others

                                                                     -224,67
(3) Profit                                                                           -224,676,8
                                                                     6,837.8
allotment                                                                                 37.80
                                                                          0

1. Provision of
surplus reserves

2. Distribution to                                                   -224,67
                                                                                     -224,676,8
owners (or                                                           6,837.8
                                                                                          37.80
shareholders)                                                             0

3. Others

(4) Internal
transferring of
owners’ equity

1. Capitalizing
of capital
reserves (or
share capital)



                                                                                              24
                                                                 Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


2. Capitalizing
of surplus
reserves (or
share capital)

3. Surplus
reserves used to
cover losses

4. Retained gain
transferred due
to change in set
benefit program

5. Other
miscellaneous
income

6. Others

(5) Special
reserves

1. Provided this
year

2. Used this
period

(6) Others

4. Balance at the 1,123,3                                                                             270,31
                                                    360,835.            3,590,12           54,042,1                         1,451,696,
end of this        84,189.                                                                            9,563.1
                                                            52                 7.88           95.07                            910.64
period                  00                                                                                    7

Amount of the Previous Term
                                                                                                                               In RMB

                                                                     H1 2018

                             Other equity tools                      Other
                                                             Less:                                                          Total of
       Item        Share Preferr Perpet       Capital          miscella Special Surplus Retained
                                                       Shares                                                     Others    owners’
                   capital ed     ual Others reserves           neous reserves reserves profit
                                                      in stock                                                               equity
                           share bond                          income

1. Balance at      1,183,
                                                  71,736,            8,756,5           110,690 586,376,1                   1,961,201,4
the end of last    642,25
                                                  128.89              53.46             ,396.65       24.33                     57.33
year                 4.00

       Plus:
Changes in
accounting
policies



                                                                                                                                       25
                                      Interim Financial Statements 2019 of China Fangda Group Co., Ltd.




Correction of
previous errors


Others

2. Balance at      1,183,
                            71,736,       8,756,5           110,690 586,376,1             1,961,201,4
the beginning      642,25
                            128.89         53.46             ,396.65      24.33                 57.33
of current year      4.00

3. Change
amount in the
                                                                       -178,040,          -178,040,36
current period
                                                                         366.90                  6.90
(“-“ for
decrease)

(1) Total of                                                           -494,028.
                                                                                          -494,028.80
misc. incomes                                                                80

(2) Investment
or decreasing of
capital by
owners

1. Common
shares invested
by owners

2. Capital
contributed by
other equity
instrument
holders

3. Amount of
shares paid and
accounted as
owners' equity

4. Others

(3) Profit                                                             -177,546,          -177,546,33
allotment                                                                338.10                  8.10

1. Provision of
surplus reserves

2. Distribution
                                                                       -177,546,          -177,546,33
to owners (or
                                                                         338.10                  8.10
shareholders)

3. Others



                                                                                                    26
                                                                  Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


(4) Internal
transferring of
owners’ equity

1. Capitalizing
of capital
reserves (or
share capital)

2. Capitalizing
of surplus
reserves (or
share capital)

3. Surplus
reserves used to
cover losses

4. Retained gain
transferred due
to change in set
benefit program

5. Other
miscellaneous
income

6. Others

(5) Special
reserves

1. Provided this
year

2. Used this
period

(6) Others

4. Balance at      1,183,
                                                   71,736,             8,756,5             110,690 408,335,7              1,783,161,0
the end of this    642,25
                                                    128.89              53.46              ,396.65      57.43                   90.43
period               4.00


III. General Information

China Fangda Group Co., Ltd. (hereinafter referred to as "the Company") was approved in October 1995 by the General Office of the
Shenzhen Municipal People's Government with the letter of Shenfu Office (1995) No. 194, in the original "Shenzhen Fangda
Building Materials Co., Ltd." on the basis of the establishment of the fundraising method. The unified social credit code is:
91440300192448589C; registered address: Fangda Building, Kejinan Road 12, High-tech Zone, Shenzhen. Mr. Xiong Jianming is
the legal representative.
The Company issued foreign currency shares (B shares) and local currency shares (A shares) and listed in November 1995 and April


                                                                                                                                   27
                                                                    Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


1996 respectively in Shenzhen Stock Exchange.
The Company has established a corporate governance structure that comprises shareholders’ meeting, board of directors and
supervisory committee. Currently, the Company sets up the President Office, Administrative Department, HR Department, Enterprise
Management Department, Financial Department, Audit and Supervisory Department, Securities Department, Technology Department
and IT Department and has established subsidiaries ds including Fangda Decoration, Fangda Automatic, Fangda New Material,
Fangda Property and Fangda New Energy.
The business nature and main business activities of the Company and its subsidiaries (hereinafter referred to as “the Group”) include
(1) curtain wall division, research and development, design, production, construction and sales of building curtain walls and materials;
(2) rail transit segment , research and development, design, production, construction and sales of subway screen doors; (3) real estate
division, engaged in real estate development and management, property management on land legally acquired right; (4) new energy
division, photovoltaic power station, photovoltaic R&D, design, production, construction, operation and sales of building integration
(BIPV).
The financial statements and notes are approved at the 17th meeting of the 8th term of the Board held on August 16, 2019.


The consolidation scope for the consolidated financial statements includes the Company and all subsidiaries. During the period,
Fangda Southeast Asia Company Limited was newly established, and the merger of enterprises under the same control increased
Shenzhen Zhongrong Litai Investment Co., Ltd., adding 2 subsidiaries in the current consolidated statement. In this period, Shenzhen
Kexunda Software Co., Ltd., an indirect controlled subsidiary, was canceled, so the current consolidated statement reduced one
subsidiary. For details, please refer to the “Note VIII. Changes in the scope of consolidation” and “Note IX. 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.

                                                                                                                                      28
                                                                     Interim Financial Statements 2019 of China Fangda Group Co., Ltd.




V. Significant Account Policies and Estimates

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 V. 15 and Note V. 24.


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 June 30, 2019, and business performance and cash flow situation in year 2019 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. The overseas subsidiaries of the Company, Fangda Zhichuang Technology (Hong Kong) Co., Ltd., Fangda Australia
Pty Ltd, and Fangda Southeast Asia Co., Ltd. respectively determine Hong Kong Dollar, Australian Dollar and Vietnamese Dong in
the currency of the main economic environment in which they operate. 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 merged party’s net assets that can be shared by the
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.

                                                                                                                                        29
                                                                    Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


In consolidated financial statements, assets and liabilities obtained by the merging party from the merged party should be measured at
the book value in the final controlling party’s consolidated financial statements other than the adjustment made due to differences in
accounting policies; adjust the capital surplus (share premium) according to the difference between the initial investment cost and the
book value of the held investment before merger plus the book value of the consideration paid on the merger date. Where the capital
surplus falls short, the retained income should be adjusted. Changes in recognized related profit and loss, other misc. incomes and
other owner's equity between the later one of the date when the original stock equity was obtained and the date when the merged
party and merging party become under the common control should respectively write down the retained profit in beginning of the
report period or current period’s profit or loss.

(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 i mpact 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.

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


                                                                                                                                       30
                                                                    Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


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 the shareholders’ equity in subsidiaries not owned the Company are separately listed under the shareholders’ equi ty as
minority shareholders’ equity in the consolidated balance sheet. The part of the subsidiaries’ net profits and losses for the current
period that belongs to minority shareholders is listed as minority shareholders’ 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 the owners’ equity of the
subsudiaries at the beginning of the period, the excessive part will offset the minority shareholders’ 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 the subsidiary’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 adjust ed 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 of subsidiaries’ 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 net assets’ 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 current period’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 currency business

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


                                                                                                                                      31
                                                                    Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


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 currency 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. The shareholders’ 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 the system’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 a company’s financial assets and contracts that form other units of financial liabilities or equity
instruments.

      (1) Classification and measurement of financial assets and financial liabilities

      Financial assets and financial liabilities are recognized in the balance sheet when the Company becomes a party to the
contractual terms of the relevant financial instruments.

      Except for accounts receivable that do not have significant financing components, financial assets and financial liabilities are
measured at fair value at initial recognition. For financial assets or liabilities measured at fair value with variations accounted into
current income account, related transaction expenses are accounted into the current income. For other financial assets or liabilities,
the related transaction expenses are accounted into the initial recognized amounts. For accounts receivable that do not have
significant financing components, the Company conducts initial measurement at the actual transaction price.

      (2) Classification and subsequent measurement of financial assets

      (a) Classification of financial assets

      At initial recognition, the Company classifies financial assets into the following three categories based on the business model of
managing financial assets and the contractual cash flow characteristics of financial assets: financial assets measured at amortized cost
are measured at fair value and their changes are included in other Financial assets with comprehensive income and financial assets


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measured at fair value through profit or loss.

        Unless the Company changes the business model for managing financial assets, in this case, all affected financial assets are
reclassified on the first day of the first reporting period after the business model changes, otherwise the financial assets may not be
initially confirmed.

        The financial assets that are measured at fair value through profit or loss are classified as financial assets measured at amortised
cost:

        ① The business model of the company's management of the financial assets is based on the collection of contractual cash
flows;

        ② The contractual terms of the financial asset stipulate that the cash flow generated on a specific date is only the payment of
the principal and the interest based on the outstanding principal amount.

        Financial assets that meet the following conditions and are not designated as at fair value through profit or loss are classified as
financial assets at fair value through other comprehensive income:

        ① The business model of the company's management of the financial assets is aimed at both the collection of contractual cash
flows and the sale of the financial assets;

        ② The contractual terms of the financial asset stipulate that the cash flow generated on a specific date is only the payment of
the principal and the interest based on the outstanding principal amount.

        For non-trading equity instrument investments, the Company may, at the time of initial recognition, arbitrarily designate it as a
financial asset that is measured at fair value and whose changes are included in other comprehensive income. The designation is
based on a single investment and the relevant investment is in line with the definition of the equity instrument from the issuer's
perspective.

        The financial assets are measured at fair value through profit or loss. At the time of initial recognition, if the accounting
mismatch can be eliminated or significantly reduced, the Company can arbitrarily designate financial assets that should be me asured
at amortized cost or measured at fair value through other comprehensive income Financial assets measured and their changes are
included in the current profit and loss.

        The business model for managing financial assets refers to how the company manages financial assets to generate cash flows.
The business model determines whether the cash flow of financial assets managed by the company is based on contract cash flow,
financial assets sold or both. The Company determines the business model for managing financial assets based on objective facts and
based on the specific business objectives of financial assets management determined by key management personnel.

        (b) Subsequent measurement of financial assets

        ① Financial assets measured at fair value with variations accounted into current income account

        After the initial recognition, the financial assets are subsequently measured at fair value, and the gains or losses (including
interest and dividend income) are included in the current profit and loss, unless the financial assets are part of the hedging
relationship.

        ② Equity instrument investment measured at fair value and whose changes are included in other comprehensive income



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        After initial recognition, the financial assets of this type are subsequently measured at fair value. Dividend income is included
in profit or loss, and other gains or losses are included in other comprehensive income. When the confirmation is terminated, the
accumulated gains or losses previously included in other comprehensive income are transferred from other comprehensive income
and included in retained earnings.

        ③ Financial assets measured at amortized cost

        After initial recognition, such financial assets are measured at amortized cost using the effective interest method. Gains or
losses arising from financial assets that are measured at amortised cost and are not a component of any of the hedges are recognized
in profit or loss in

        (3) Classification and subsequent measurement of financial liabilities

        The Group classifies financial liabilities into financial liabilities measured at fair value through profit or loss and financial
liabilities measured at amortised cost.
        ① Financial liabilities measured at fair value with variations accounted into current income account
        Such financial liabilities include transactional financial liabilities (including derivatives that are financial liabilities) and
financial liabilities designated as at fair value through profit or loss.
        After the initial recognition, the financial liabilities are subsequently measured at fair value. Except for the hedge accounting,
the gains or losses (including interest expenses) are recognized in profit or loss.
        Financial liabilities measured at amortized cost
        After initial recognition, other financial liabilities are measured at amortized cost using the effective interest method.
        (4) Presentation of financial instruments
        Financial assets and financial liabilities are presented separately in the balance sheet and are not offset by each other. However,
if the following conditions are met, the net amount offset by each other is listed in the balance sheet:
        ① The company has a statutory right to offset the confirmed amount, and such legal right is currently enforceable;
        ② The company plans to settle the net assets or realize the financial assets and liquidate the financial liabilities at the same
time.
        (5) Final recognition of financial instruments
        The Company derecognises the financial asset when one of the following conditions is met:
        ① The contractual right to receive the cash flows of the financial assets is terminated;
        ② The financial assets have been transferred, and the company transfers almost all the risks and rewards of ownership of the
financial assets to the transferee;
        ③ The financial assets have been transferred. Although the company has neither transferred nor retained almost all the risks
and rewards of ownership of financial assets, it does not retain control over the financial assets.
        If the financial assets transfer as a whole meets the conditions for derecognition, the difference between the carrying amount of
the transferred financial assets on the date of derecognition and the consideration received from the transfer of the financial assets is
recognized in profit or loss.
        If the current obligation of a financial liability (or part of it) has been discharged, the company derecognises the financial
liability (or part of the financial liability).
        (6) Impairment of financial assets
        On the basis of expected credit losses, the Company conducts impairment test on financial assets and contract assets measured
at amortized cost and confirms impairment provision.
        Other financial assets held at fair value through the Company are not subject to the expected credit loss model, including equity
instrument investments that are measured at fair value through profit or loss, and are designated at fair value through Income from
equity instrument investments, as well as derivative financial assets

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      (6.1) Expected credit loss measurement
      The expected credit loss refers to the weighted average of the credit losses of financial instruments that are weighted by the risk
of default. Credit loss refers to the difference between all contractual cash flows receivable from the contract and all cash flows
expected to be received by the Company at the original actual interest rate, that is, the present value of all cash shortages.
      In measuring the expected credit losses, the longest period of consideration for the company is the longest contract period for
which the company is exposed to credit risk (including consideration of renewal options).
      The expected lifetime credit loss is the expected credit loss due to all possible default events during the entire expected life of
the financial instrument.
      Expected credit losses in the next 12 months are expected to result from possible defaults in financial instruments within 12
months after the balance sheet date (or estimated duration of financial instruments if the expected duration is less than 12 months)
Credit losses are part of the expected lifetime credit loss.
      For accounts receivable and contract assets, the Company always measures its loss preparation in accordance with the amount
of expected credit losses for the entire life. The Company calculates the expected credit losses of the above financial asset s based on
historical credit loss experience, industry data information, and usage preparation matrix. The relevant historical experience is based
on the specific factors of the receivables on the balance sheet date and the current conditions and future economic conditions. The
assessment is adjusted.
      Except for accounts receivable and contract assets, the Company measures its loss for financial instruments that meet the
following conditions in accordance with the amount of expected credit losses in the next 12 months, and the other financial
instruments are equivalent to the entire life expectancy. The amount of credit loss is measured by its loss:
      ① The financial instrument has only a low credit risk on the balance sheet date; or
      ② The credit risk of the financial instrument has not increased significantly since the initial confirmation.
    (6.2) Lower credit risk
      If the risk of default on financial instruments is low, the borrower’s ability to meet its contractual cash flow obligations in the
short term is strong, and even if the economic situation and operating environment are adversely changed over a long period of time,
it may not necessarily reduce the receivables' performance of their contractual cash. The ability of the flow obligation, the financial
instrument is considered to have a lower credit risk.
      (3) Substantially increased credit risks
      The Company determines the relative risk of default risk of the financial instrument by comparing the risk of default of the
financial instrument on the balance sheet date with the risk of default on the initial recognition date to assess the credit risk of the
financial instrument from initial recognition.
      In determining whether the credit risk has increased significantly since the initial recognition, the Company considers
reasonable and evidenced information, including forward-looking information, that can be obtained without unnecessary additional
costs or effort. The information considered by the company includes:
      1.The debtor’s failure to pay the principal and interest on the contractual maturity date;
      2.A serious deterioration in the external or internal credit rating (if any) of the financial instrument that has occurred or is
expected;
      3.A serious deterioration in the operating results of the debtor that has occurred or is expected;
      4.Changes in existing or anticipated technical, market, economic or legal circumstances that will have a material adverse effect
on the debtor's ability to repay the Group.
      Based on the nature of financial instruments, the Group assesses whether credit risk has increased significantly on the basis of a
single financial instrument or combination of financial instruments. When conducting an assessment based on a combination of
financial instruments, the Group can classify financial instruments based on common credit risk characteristics, such as overdue
information and credit risk ratings.
      If the overdue period exceeds 30 days, the company has determined that the credit risk of financial instruments has increased


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significantly. If the object of the receivable is unlikely to pay its full amount to the company or it is overdue for more than 90 days, it
is considered that the default has occurred.
      (6.4) Financial assets with credit impairment
      On the balance sheet date, the Company assesses whether the financial assets measured at amortized cost have incurred credit
impairment. When one or more events that adversely affect the expected future cash flows of a financial asset occur, the financial
asset becomes a financial asset that has suffered a credit impairment. Evidence that credit impairment has occurred in financial assets
includes the following observable information:
      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 Company gives concessions to the debtor in any other circumstances for economic or contractual considerations
relating to the financial difficulties of the debtor;
      ④ The debtor may go bankruptcy or conduct other financial reorganization;
      ⑤ The financial difficulties of the issuer or the debtor have caused the active market of the financial asset to disappear.
     (6.5) Presentation of expected credit loss measurement
      In order to reflect the changes in the credit risk of financial instruments since the initial recognition, the Company re -measures
the expected credit losses on each balance sheet date, and the increase or reversal of the loss provision resulting therefrom is included
as an impairment loss or gain. Current profit and loss. For financial assets measured at amortized cost, the loss is prepared to offset
the carrying amount of the financial asset presented in the balance sheet.
     (6.6) Write-off
      如果本公司不再合理预期金融资产合同现金流量能够全部或部分收回,则直接减记该金融资产的账面余额。 Such
write-off constitute the derecognition of related financial assets. This usually occurs when the company determines that the debtor
has no assets or sources of income that generate sufficient cash flow to cover the amount that will be written down. However,
according to the company's procedures for recovering the due amount, the financial assets that have been written down may still be
affected by the execution activities.
      If the financial assets that have been written down are recovered in the future, the reversal of the impairment loss is included in
the profit or loss of the current period.
      (7) Equity instruments
      The consideration received by the Company for the issuance of equity instruments, after deducting transaction costs, is
included in shareholders' equity. Repurchase the consideration and transaction fees paid by the Company's equity instruments to
reduce shareholders' equity.


10. Notes receivable


      For notes receivable, whether or not it contains significant financing components, the company always measures its loss

preparation according to the amount of expected credit losses for the entire duration of the period, and the resulting increase or loss

of losses is formed as an impairment loss or Gains are included in the current profit and loss.

      The Company's evaluation of this category of funds has a lower credit risk. If there is objective evidence that a note receivable

has been credit-depreciated, the Company makes provision for bad debts and confirms expected credit losses for the notes receivable.




                                                                                                                                        36
                                                                    Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


11. Account receivable


      The Company considers all reasonable and evidence-based information, estimates the expected credit losses of receivables in a

single or combined manner, and adopts a simplified model of expected credit losses, always measuring the amount of expected credit

losses equivalent to the entire duration of the period. Loss preparation.


(1) Account receivable for which bad debt provision is made by item

(1.1) Account receivable with major individual amount and bad debt provision provided individually


                                                                      For the current year, the Company recognizes project receivables
                                                                      over RMB10 million (inclusive) as “individual receivable with
Judging basis or standard of major individual amount
                                                                      large amount” while recognizes product receivables over RMB2
                                                                      million (included) as “individual receivable with large amount”.

                                                                      The Company performs impairment examination individually on
                                                                      each 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 risk
                                                                      groups.


(1.2) Account receivable with minor 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




(2) Recognition and providing of bad debt provisions on groups


                               Group                                                      Method of bad debt provision

Account age                                                           Aging method

Combination of assets state (receivables within consolidation,
receivables of real estate property sold with bank mortgage and       Not provided
accounts between the Company and partners)

Receivables adopting the aging method in the group:

                                                           Providing rate for receivable account
                    Age
                                                   Engineering              Real estate            Others

Within 1 year (inclusive)                                     1.68%                  1.00%               1.23%


                                                                                                                                           37
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1-2 years                                                   5.41%                5.00%              3.85%

2-3 年                                                    15.99%                5.00%             15.95%

3-4 年                                                    30.15%               15.00%             33.98%

4-5 年                                                    53.13%               15.00%             76.41%

Over 5 years                                              100.00%               15.00%            100.00%




The Company must comply with disclosure requirements of the Shenzhen Stock Exchange Industry Information Disclosure
Guideline No.6 – Listed Companies Engaged in Decoration Business.


12. Other receivables


      The Company measures its loss for financial instruments that meet the following conditions in accordance with the amount of

expected credit losses in the next 12 months, and the other financial instruments are equivalent to the entire life expectancy. The

amount of credit loss is measured by its loss:

      ① The amount has only a low credit risk on the balance sheet date; or

      ② The credit risk of the amount has not increased significantly since the initial confirmation.

      For details of the specific accounting judgment processing methods, please refer to "V. 9. Financial Instruments (6) Impairment

of Financial Assets" in this note.


13. Inventories

Whether the Company needs to comply with disclosure requirements of special industries
Yes
Decoration
(1) Classification of inventories

The Group’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) Valuation method for issuing 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


                                                                                                                                  38
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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.

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.


14. 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) Initial investment cost determination

Long-term equity investment generated by enterprise merger: for long-term equity investment obtained by merger of enterprises
under common control, the obtained share of book value of the interests of the merged party’s owner in the consolidate financial
statements on the merger date is 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


                                                                                                                                       39
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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 the owner’s equity except for net profit and loss, other misc
income and profit distribution of the invested entity, adjust the book value of the long-term equity investment and record it in the
capital surplus (other capital surplus). When the share of the net gains that can be enjoyed is recognized, it is recognized after the net
profit of the invested entity is adjusted based on the fair value of the recognizeable assets of the invested entity according to the
Company's accounting policies and accounting period.

Where 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 the Company’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.



                                                                                                                                       40
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(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 ri ghts 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 holds 20% (inclusive) but less than 50% 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 than 20% 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.

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. 20 for the assets impairment provision method for investment in subsidiaries and joint ventures.


IX. 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 real estates’ 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.


                                                                                                                                        41
                                                                    Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


Investment real estate that use the cost method for further measurement adopt the straight-line depreciation provision method. See
Note V. 20 for the provision method.


16. 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


(2) Depreciation method


                                                                                                                Annual depreciation
           Type               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%


17. 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. 20 for the provision method for construction in process.


18. 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;




                                                                                                                                       42
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② Borrowing costs have occurred;

③ Purchasing or production activity, which is necessary for the asset to reach the useful status, has already started.

(2) Capitalization period of borrowing expenses

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.

(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.




19. Intangible assets

(1) Pricing method, service life and depreciation test

The Group’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 pr edicted
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 years                              Average age
Proprietary technology                                                              10 years                              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.



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On the balance sheet day, if the intangible assets become unlikely to bring future economic benefits for the Group, transfer all the
intangible assets’ book value into the current gain/loss account.

See Note V. 20 for the impairment provision method for intangible assets.




(2) Accounting policies for internal R&D expenses

The Group divides internal R&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;
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.




20. 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 t he
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.



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                                                                   Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


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 recover able
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.




21. Long-term amortizable expenses

The Group’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.




22. Staff remuneration

(1) Accounting of operational leasing

The Group pays for the medical insurance, job injury insurance and breeding insurance and housing fund according to employees’
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.

                                                                                                                                      45
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23. 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.




24. 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.
 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.
The reliable estimation of the result of a construction contract must meet the following conditions: A. the revenue can be reliably


                                                                                                                                         46
                                                                    Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


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 methods for revenue recognition
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.




25. 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

                                                                                                                                         47
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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 t he
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.




26. Differed income tax assets and differed income tax liabilities

Income tax includes current and deferred income tax Except for the adjustment goodwill generated by mergers or deferred income
tax related to transactions or events directly accounted into the owners’ equity, income tax is accounted as income tax expense into
the current gain/loss account.

The 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

                                                                                                                                                48
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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 tax assets’ book value. When there
is adequate taxable proceeds, the lessened amount will be reversed.




27. 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

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.




28. 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


                                                                                                                                       49
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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) Estimation of fair value

The Group uses fair value to measure investment real estate and needs to estimate the fair value of investment real estate at least
quarterly. This requires the management to reasonably estimate the fair value of the investment real estate with the help of valuation
experts.

(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 contract

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 l oss 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) Hedge accounting

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
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 “Ot her
misc. income hedging reserve” will be transferred to “Raw materials”.




                                                                                                                                        50
                                                                 Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


29. Major changes in accounting policies and estimates

(1) Changes in accounting policies

√ Applicable □ Inapplicable

    Account policy changes and reasons                   Approval procedure                                  Remark

In 2017, the Ministry of Finance revised
and released the "Accounting Standards for
Business Enterprises No. 22 - Recognition
and Measurement of Financial
Instruments", "Accounting Standards for
Business Enterprises No. 23 - Transfer of
Financial Assets", "Accounting Standards
for Business Enterprises No. 24 - Hedge
Accounting", "Accounting Standards for
                                             15th meeting of the 8th Supervisory
Business Enterprises No. 37 - Financial
                                             Committee
Instruments Presentation" (hereinafter
collectively referred to as the "New
Financial Instruments Standards") and
requires enterprises listed in China to
implement the above accounting standards
from January 1, 2019. In accordance with
the above requirements, the Company
implement the new financial instrument
guidelines from January 1 2019.

On April 30, 2019, the Ministry of Finance
issued the Notice on Amending the Format
of the 2019 Annual General Enterprise
Financial Statements (Accounting [2019]
No. 6). Enterprises requiring the
implementation of corporate accounting
standards should follow the Accounting
Standards for Business Enterprises,                                                       It only affects the listing of related items in
requiring for the preparation of the 2019                                                 the financial statements, and does not
                                             17th meeting of the 8th Board of Directors
interim financial statements and annual                                                   affect the company's total assets, total
financial statements and financial                                                        liabilities, net assets and net profit.
statements for subsequent periods.
In accordance with the above notification
requirements, the Company has adjusted
the financial statement items accordingly,
starting from the 2019 interim financial
statements.




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                                                                  Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


      The specific impact of the implementation of the new financial instruments guidelines on the financial statement items at the
beginning of 2019 is as follows:
      1. Provision for impairment according to the new financial instrument standard adjustment to reduce the bad debt provision for
accounts receivable by RMB 12,690,700, reduce the provision for bad debts of other receivables by RMB 2,145,000, reduce the
deferred income tax assets by RMB 3,305,900 and increase the initial surplus reserve by RMB 8,300, and increase the undistributed
profit of RMB 11,521,500 at the beginning of the period.
      2. The non-trading equity instrument investment is designated as a financial asset measured at fair value and its changes are
included in other comprehensive income. The original provision for impairment is adjusted to other comprehensive income and the
other comprehensive income at the beginning of the period is reduced by RMB 5,166,400. The initial surplus reserve is increased by
RMB 516,600 and the undistributed profit is increased by RMB 4,649,800 at the beginning of the period.
      The impact of the implementation of the new financial instrument criteria on the company's current financial statement items
and amounts is as follows:
      Provision for impairment according to the new financial instrument standard, adjustment and reduction of bad debt provision
for accounts receivable of RMB1,215,500, increase of bad debt provision for other receivables of RMB2,084,200, corresponding
increase of deferred income tax assets of RMB436,200, increase credit impairment losses of RMB868,800, reduced income tax
expenses of RMB436,200, reduced net profit attributable to the parent company of RMB419,300, and reduced undistributed profit of
RMB416,600.


(2) Changes in major accounting estimates

□ Applicable √ Inapplicable


(3) The first implementation of the new financial instruments guidelines, new income standards, new lease
standards, adjustments the first implementation of the financial statements at the beginning of the year

√ Applicable □ Inapplicable
Consolidated Balance Sheet
                                                                                                                               In RMB

             Item                     December 31, 2018                   January 1, 2019                      Adjustment

Current asset:

     Monetary capital                          1,389,062,083.76                  1,389,062,083.76

     Settlement provision

     Outgoing call loan

     Transactional financial
                                                                                               0.00
assets

     Financial assets
measured at fair value with
variations accounted into
current income account

     Derivative financial
                                                                                               0.00
assets



                                                                                                                                      52
                                                    Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


     Notes receivable             140,139,692.84                    140,139,692.84

     Account receivable          1,920,075,031.85                 1,932,765,689.04                    12,690,657.19

     Receivable financing

     Prepayment                    46,454,844.74                     46,454,844.74

     Insurance receivable

     Reinsurance receivable

     Provisions of
Reinsurance contracts
receivable

     Other receivables            139,990,188.26                    142,135,200.55                     2,145,012.29

         Including: interest
receivable

                 Dividend
receivable

     Repurchasing of
financial assets

     Inventory                    651,405,832.29                    651,405,832.29

     Contract assets

     Assets held for sales

     Non-current assets due
in 1 year

     Other current assets          51,698,111.14                     51,698,111.14

Total current assets             4,338,825,784.88                 4,353,661,454.36                    14,835,669.48

Non-current assets:

     Loan and advancement
provided

     Debt investment

     Sellable financial assets     21,674,008.23                                                     -21,674,008.23

     Other debt investment

     Investment held until
mature

     Long-term receivable

     Long-term share equity
                                   70,105,657.88                     70,105,657.88
investment

     Investment in other
                                                                     21,674,008.23                    21,674,008.23
equity tools




                                                                                                                  53
                                                    Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


     Other non-current
financial assets

     Investment real estate      5,256,442,406.63                 5,230,896,067.50

     Fixed assets                 455,274,241.83                    455,274,241.83

     Construction in process       58,269,452.72                     58,269,452.72

     Productive biological
assets

     Gas & petrol

     Use right assets

     Intangible assets             80,313,240.67                     80,313,240.67

     R&D expense

     Goodwill

     Long-term amortizable
                                     2,114,331.46                     2,114,331.46
expenses

     Deferred income tax
                                  356,474,925.76                    356,474,925.76                    -3,305,914.45
assets

     Other non-current assets      19,360,083.67                     19,360,083.67

Total of non-current assets      6,320,028,348.85                 6,316,722,434.40                    -3,305,914.45

Total of assets                 10,658,854,133.73                10,670,383,888.76                    11,529,755.03

Current liabilities

     Short-term loans             208,000,000.00                    208,000,000.00

     Loans from Central
Bank

     Call loan received

     Transactional financial
liabilities

     Financial liabilities
measured at fair value with
variations accounted into
current income account

     Derivative financial
                                     1,625,725.00                     1,625,725.00
liabilities

     Notes payable                507,864,518.19                    507,864,518.19

     Account payable             1,039,630,798.64                 1,039,630,798.64

     Prepayment received          278,577,848.54                    278,577,848.54

     Selling of repurchased
financial assets


                                                                                                                  54
                                                       Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


       Deposit received and
held for others

       Entrusted trading of
securities

       Entrusted selling of
securities

       Employees' wage
                                      44,513,062.17                     44,513,062.17
payable

       Taxes payable                 107,709,999.19                    107,709,999.19

       Other payables                813,118,699.84                    813,118,699.84

         Including: interest
                                       2,098,971.44                      2,098,971.44
payable

                  Dividend
payable

       Fees and commissions
payable

       Reinsurance fee payable

       Contract liabilities

       Liabilities held for sales

       Non-current liabilities
                                     200,000,000.00                    200,000,000.00
due in 1 year

       Other current liabilities       9,328,682.25                      9,328,682.25

Total current liabilities           3,210,369,333.82                 3,210,369,333.82

Non-current liabilities:

       Insurance contract
provision

       Long-term loans              1,193,978,153.39                 1,193,978,153.39

       Bond payable

         Including: preferred
stock

                  Perpetual
bond

       Lease liabilities

       Long-term payable

       Long-term employees’
wage payable

       Anticipated liabilities         6,831,162.99                      6,831,162.99


                                                                                                                     55
                                                                    Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


       Deferred earning                             10,401,161.30                       10,401,161.30

       Deferred income tax
                                                 1,042,086,700.35                   1,042,086,700.35
liabilities

       Other non-current
liabilities

Total of non-current
                                                 2,253,297,178.03                   2,253,297,178.03
liabilities

Total liabilities                                5,463,666,511.85                   5,463,666,511.85

Owner’s equity:

       Share capital                             1,155,481,686.00                   1,155,481,686.00

       Other equity tools

         Including: preferred
stock

                    Perpetual
bond

       Capital reserves                              1,454,191.59                        1,454,191.59

       Less: Shares in stock                        10,831,437.66                       10,831,437.66

       Other miscellaneous
                                                     7,382,087.59                        2,215,662.01                       -5,166,425.58
income

       Special reserves

       Surplus reserves                            120,475,221.40                     121,000,081.43                           524,860.03

       Common risk provisions

       Retained profit                           3,921,225,872.96                   3,937,397,193.54                       16,171,320.58

Total of owner’s equity
                                                 5,195,187,621.88                   5,206,717,376.91                       11,529,755.03
belong to the parent company

     Minor shareholders’
equity

Total of owners’ equity                         5,195,187,621.88                   5,206,717,376.91                       11,529,755.03

Total of liabilities and
                                               10,658,854,133.73                   10,670,383,888.76                       11,529,755.03
owner’s interest

About the adjustment
     In 2017, the Ministry of Finance revised and released the "Accounting Standards for Business Enterprises No. 22 - Recognition
and Measurement of Financial Instruments", "Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets",
"Accounting Standards for Business Enterprises No. 24 - Hedge Accounting" "Accounting Standards for Business Enterprises No. 37
- Financial Instruments Presentation" (hereinafter collectively referred to as the "New Financial Instruments Standards"), and requires
enterprises listed in China to implement the above accounting standards from January 1, 2019.
     In accordance with the above requirements, the Company will implement the new financial instrument standard from January 1,
2019 and reclassify the original financial assets into transactional financial assets, derivative financial assets, other equity instrument


                                                                                                                                         56
                                                                     Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


investments and other non-current financial assets.    Non-transaction equity instrument investment is designated as financial assets
measured at fair value through other comprehensive income and is presented in “other equity instrument investment” items. At the
same time, the loss provision prepared by the original financial instrument standard is adjusted to be in accordance with the new
financial instrument. According to the regulations, it is not necessary to repeat the data of the 2018 comparative period when
preparing the report for each period of 2019, but it is necessary to make retrospective adjustments to the retained earnings or other
comprehensive income at the beginning of 2019.
Balance Sheet of the Parent Company
                                                                                                                                 In RMB

              Item                    December 31, 2018                     January 1, 2019                     Adjustment

Current asset:

     Monetary capital                            410,118,157.55                      410,118,157.55

     Transactional financial
assets

     Financial assets
measured at fair value with
variations accounted into
current income account

     Derivative financial
assets

     Notes receivable                            200,000,000.00                      200,000,000.00

     Account receivable                                471,039.12                        471,039.12                           8,595.25

     Receivable financing

     Prepayment                                       6,733,047.16                     6,733,047.16

     Other receivables                           822,543,653.04                      822,543,653.04                        100,970.95

         Including: interest
receivable

                 Dividend
                                                 100,000,000.00                      100,000,000.00
receivable

     Inventory

     Contract assets

     Assets held for sales

     Non-current assets due
in 1 year

     Other current assets                              919,388.18                        919,388.18

Total current assets                           1,440,785,285.05                    1,440,894,851.25                        109,566.20

Non-current assets:

     Debt investment




                                                                                                                                        57
                                                    Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


     Sellable financial assets     21,674,008.23                                                     -21,674,008.23

     Other debt investment

     Investment held until
mature

     Long-term receivable

     Long-term share equity
                                  983,339,494.35                    983,339,494.35
investment

     Investment in other
                                                                     21,674,008.23                    21,674,008.23
equity tools

     Other non-current
financial assets

     Investment real estate       309,189,866.37                    309,189,866.37

     Fixed assets                  53,784,811.23                     53,784,811.23

     Construction in process

     Productive biological
assets

     Gas & petrol

     Use right assets

     Intangible assets               2,112,301.97                     2,112,301.97

     R&D expense

     Goodwill

     Long-term amortizable
                                      917,499.68                        917,499.68
expenses

     Deferred income tax
                                   34,555,598.81                     34,528,207.26                       -27,391.55
assets

     Other non-current assets

Total of non-current assets      1,405,573,580.64                 1,405,546,189.09                       -27,391.55

Total of assets                  2,846,358,865.69                 2,846,441,040.34                        82,174.65

Current liabilities

     Short-term loans             200,000,000.00                    200,000,000.00

     Transactional financial
liabilities

     Financial liabilities
measured at fair value with
variations accounted into
current income account

     Derivative financial


                                                                                                                  58
                                                     Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


liabilities

       Notes payable

       Account payable                 676,941.85                        676,941.85

       Prepayment received             733,274.16                        733,274.16

       Contract liabilities

       Employees' wage
                                      2,145,763.39                     2,145,763.39
payable

       Taxes payable                   341,004.65                        341,004.65

       Other payables               300,006,406.51                   300,006,406.51

         Including: interest
                                       740,208.33                        740,208.33
payable

                 Dividend
payable

       Liabilities held for sales

       Non-current liabilities
due in 1 year

       Other current liabilities

Total current liabilities           503,903,390.56                   503,903,390.56

Non-current liabilities:

       Long-term loans              500,000,000.00                   500,000,000.00

       Bond payable

         Including: preferred
stock

                 Perpetual
bond

       Lease liabilities

       Long-term payable

       Long-term employees’
wage payable

       Anticipated liabilities

       Deferred earning

       Deferred income tax
                                     64,130,617.41                    64,130,617.41
liabilities

       Other non-current
liabilities

Total of non-current
                                    564,130,617.41                   564,130,617.41
liabilities


                                                                                                                   59
                                                                     Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


Total liabilities                                1,068,034,007.97                   1,068,034,007.97

Owner’s equity:

       Share capital                             1,155,481,686.00                   1,155,481,686.00

       Other equity tools

         Including: preferred
stock

                    Perpetual
bond

       Capital reserves                                360,835.52                          360,835.52

       Less: Shares in stock                        10,831,437.66                       10,831,437.66

       Other miscellaneous
                                                      8,756,553.46                       3,590,127.88                       -5,166,425.58
income

       Special reserves

       Surplus reserves                            120,475,221.40                     121,000,081.43                           524,860.03

       Retained profit                             504,081,999.00                     508,805,739.20                         4,723,740.20

Total of owners’ equity                         1,778,324,857.72                   1,778,407,032.37                            82,174.65

Total of liabilities and
                                                 2,846,358,865.69                   2,846,441,040.34                            82,174.65
owner’s interest

About the adjustment
     In 2017, the Ministry of Finance revised and released the "Accounting Standards for Business Enterprises No. 22 - Recognition
and Measurement of Financial Instruments", "Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets",
"Accounting Standards for Business Enterprises No. 24 - Hedge Accounting" "Accounting Standards for Business Enterprises No. 37
- Financial Instruments Presentation" (hereinafter collectively referred to as the "New Financial Instruments Standards"), and requires
enterprises listed in China to implement the above accounting standards from January 1, 2019.
     In accordance with the above requirements, the Company will implement the new financial instrument standard from January 1,
2019 and reclassify the original financial assets into transactional financial assets, derivative financial assets, other equity instrument
investments and other non-current financial assets.    Non-transaction equity instrument investment is designated as financial assets
measured at fair value through other comprehensive income and is presented in “other equity instrument investment” items. At the
same time, the loss provision prepared by the original financial instrument standard is adjusted to be in accordance with the new
financial instrument. According to the regulations, it is not necessary to repeat the data of the 2018 comparative period when
preparing the report for each period of 2019, but it is necessary to make retrospective adjustments to the retained earnings or other
comprehensive income at the beginning of 2019.




(4) Description of the first implementation of the new financial instrument criteria, new lease standard
retrospective adjustment of the previous period comparison data

□ Applicable √ Inapplicable




                                                                                                                                         60
                                                                      Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


VI. Taxation

1. Major taxes and tax rates


                    Tax                                            Tax basis                                 Tax rate

VAT                                             Taxable income                              3%, 5%, 6%, 9%, 10%, 13%, 16%

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 Group Co., Ltd.                                 15%

Fangda Zhichuang Science and Technology Co., Ltd.                      15%

Fangda New Materials (Jiangxi) Co., Ltd.                               15%

Dongguan Fangda New Material Co., Ltd.                                 15%

Chengda Fangda Construction Technology Co., Ltd.                       15%

Shenzhen Fangda Property Development Co., Ltd.                         25%

Shenzhen Fangda New Energy Co., Ltd.                                   25%

Shenzhen Fangda Property Management Co., Ltd.                          25%

Fangda Property (Jiangxi) Co., Ltd.                                    25%

Pingxiang Fangda Luxin New Energy Co., Ltd.                            25%

Pingxiang Xiangdong Fangda       New Energy Co., Ltd.                  25%

Nanchang Xinjian Fangda New Energy Co., Ltd.                           25%

Dongguan Fangda New Energy Co., Ltd.                                   25%

Shenzhen Qianhai Kechuangyuan Software Co., Ltd.                       15%

Fangda Zhichuang Science and Technology (Hong Kong) Co.,
                                                                       16.50%
Ltd.

Shihui International Holding Co., Ltd.                                 16.50%

Shenzhen Hongjun Investment Co., Ltd.                                  25%

Fangda Australia Pty Ltd                                               30%

Shanghai Fangda Qingling Technology Co., Ltd.                          25%

Shenzhen Fangda Cloud Rail Technology Co., Ltd.                        25%

Shenzhen Zhongrong Litai Investment Co., Ltd.                          25%



                                                                                                                                    61
                                                                  Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


FANGDA SOUTHEAST ASIA COMPANY LIMITED                              20%


2. Tax preference

(1) According to the Certification of High-tech Enterprise issued by Shenzhen Commission of Technological Innovation, Shenzhen
Commission of Finance, Shenzhen National Tax Bureau, and Shenzhen Local Tax Bureau, Fangda Jianke was entitled to enjoy a tax
preference of enterprise income tax of 15% for three years (2018-2020) since the qualifications were awarded on October 16, 2018.

(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, Fangda Zhichuang was entitled to enjoy a
tax preference of enterprise income tax of 15% for three years (2018-2020) since the qualifications were awarded on October 16,
2018.

(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, Fangda New Material was entitled to enjoy a tax preference of
enterprise income tax of 15% for three years (2018-2020) since the qualifications were awarded on August 13, 2018.

(4) On December 14, 2017, the subsidiary Chengdu Fangda Construction Technology Co., Ltd. obtained the “High-tech Enterprise
Certificate” jointly issued by Sichuan Science and Technology Department, Sichuan Provincial Department of Finance, Sichuan
Provincial State Taxation Bureau and Sichuan Provincial Local Taxation Bureau, within three years after obtaining the qualification
of high-tech enterprises (2017 to 2019), the income tax is levied at 15%.


(5) On November 30, 2016, the subsidiary Dongguan Fangda New Materials Co., Ltd. obtained the “High-tech Enterprise
Certificate” jointly issued by Guangdong Science and Technology Department, Guangdong Provincial Department of Finance,
Guangdong Provincial State Taxation Bureau and Guangdong Provincial Local Taxation Bureau. The income tax shall be levied at
15% within three years after the qualification of the high-tech enterprise is recognized (2016 to 2018).

(6) On November 2, 2015, the Songshan Lake Taxation Bureau of the State Taxation Bureau of Dongguan City notified the
“Songshan Lake National Taxation Pass [2015] No. 3305” that the photovoltaic power generation project undertaken by the
subsidiary Dongguan Fangda New Energy Co., Ltd. belongs to public infrastructure projects supported by the state will be exempted
from corporate income tax for three years and corporate income tax will be halved for three years. In 2015, the company enter ed the
exemption period.

(7) On March 2, 2016, according to the document issued by Luxi National Tax Bureau, the PV power generation project undertaken
by Subsidiary Pingxiang Fangda Luxin New Energy Co., Ltd, became the infrastructure project supported by the central government.
the company enjoys a three-year enterprise income tax relief and 50% reduction for another three years. In 2016, the company
entered the exemption period.

(8) On June 2, 2016, according to the document issued by Nanchang Xinjian District National Tax Bureau, the PV power generation
project undertaken by Subsidiary Nanchang Xinjian Fangda New Energy Co., Ltd, became the infrastructure project supported by the
central government. the company enjoys a three-year enterprise income tax relief and 50% reduction for another three years. In 2016,
the company entered the exemption period.

(9) 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


                                                                                                                                    62
                                                                  Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


to enjoy the exemption.


VII. Notes to the consolidated financial statements

1. Monetary capital

                                                                                                                         In RMB RMB

                    Item                                   Closing balance                             Opening balance

Inventory cash:                                                                 3,448.76                                     5,167.01

Bank deposits                                                            417,446,721.38                               994,706,369.72

Other monetary capital                                                   655,276,556.31                               394,350,547.03

Total                                                                  1,072,726,726.45                             1,389,062,083.76

  Including: total amount deposited in
                                                                          27,209,910.00                                25,269,577.35
overseas

Other note
Note: 1. The book balance of other monetary funds at the end of the period is RMB655,276,556.31, mainly including money deposits
such as money order deposits, stage deposit guarantees guarantee, letters deposits of investment funds and repurchase payments of B
shares.
2. The deposit and frozen deposit and time deposit shall not be treated as cash and cash equivalent in the preparation of cash flow
statements.
3. At the end of the period, the Group's total amount deposited abroad was RMB27,209,910.00.


2. Transactional financial assets

                                                                                                                         In RMB RMB

                    Item                                   Closing balance                             Opening balance

Financial assets measured at fair value
with variations accounted into current                                   200,121,506.67                                          0.00
income account

  Including:

Fund                                                                     200,121,506.67                                          0.00

Financial assets measured at fair value
with variations accounted into current                                              0.00                                         0.00
income account

  Including:

Total                                                                    200,121,506.67                                          0.00

Others:




                                                                                                                                      63
                                                      Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


3. Derivative financial assets

                                                                                                              In RMB RMB

                   Item                         Closing balance                             Opening balance

Hedging tools                                                       17,375.00                                        0.00

Total                                                               17,375.00                                        0.00

Others:


4. Notes receivable

(1) Classification of notes receivable

                                                                                                              In RMB RMB

                   Item                         Closing balance                             Opening balance

Bank acceptance                                                   5,220,227.04                                6,000,000.00

Commercial acceptance                                         80,227,865.72                               134,139,692.84

Financing credit                                                   207,778.42

Total                                                         85,655,871.18                               140,139,692.84


(2) Pledged notes receivable at the end of period

                                                                                                              In RMB RMB

                          Item                                        Amount pledged at the end of the period

Commercial acceptance                                                                                                0.00

Total                                                                                                                0.00


3) The Group has no endorsed or discounted immature receivable notes at the end of the period.

                                                                                                              In RMB RMB

                   Item                      De-recognized amount                      Not de-recognized amount

Bank acceptance                                              136,630,211.35                                          0.00

Commercial acceptance                                             8,862,482.58                                       0.00

Total                                                        145,492,693.93                                          0.00




                                                                                                                        64
                                                                      Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


Others:

There is no objective evidence that the Group’s bills receivable are impaired and no provision for
impairment of bills receivable has been accrued.

5. Account receivable

(1) Account receivable disclosed by categories

                                                                                                                                  In RMB 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

Account receivable
for which bad debt      127,021,               127,021,                           127,037,1               127,037,1
                                      5.11%               100.00%          0.00                  5.56%                100.00%           0.00
provision is made by     059.76                  059.76                              56.92                   56.92
group

Including:

Account receivable
with major individual
                        115,324,               115,324,                           115,340,9               115,340,9
amount and bad debt                   4.64%               100.00%          0.00                  5.04%                100.00%           0.00
                         894.46                  894.46                              91.62                   91.62
provision provided
individually

Account receivable
with minor individual
                        11,696,1               11,696,1                           11,696,16               11,696,16
amount and bad debt                   0.47%               100.00%          0.00                  0.51%                100.00%           0.00
                          65.30                   65.30                                5.30                    5.30
provision provided
individually

Account receivable
for which bad debt      2,357,10               238,196,               2,118,904 2,159,461                 226,696,2               1,932,765,6
                                    94.89%                  10.11%                              94.44%                  10.50%
provision is made by    0,687.64                 191.85                 ,495.79     ,958.27                  69.23                     89.04
group

Including:

                        2,349,96               238,196,               2,111,764 2,159,461                 226,696,2               1,932,765,6
Account age                         94.60%                 10.14%                               94.44%                  10.50%
                        0,687.64                 191.85                 ,495.79     ,958.27                  69.23                     89.04

Asset status group -
amount of real estate   7,140,00                                      7,140,000
                                      0.29%        0.00      0.00%                     0.00      0.00%         0.00      0.00%          0.00
services sold by bank      0.00                                             .00
mortgage payment


                                                                                                                                           65
                                                                 Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


                       2,484,12             365,217,             2,118,904 2,286,499               353,733,4               1,932,765,6
Total                             100.00%               14.70%                           100.00%                  15.47%
                       1,747.40              251.61                ,495.79     ,115.19                 26.15                      89.04

Separate bad debt provision:
                                                                                                                          In RMB RMB

                          Closing balance
Name
                          Remaining book value       Bad debt provision          Provision rate            Reason

                                                                                                           Customer credit status
Customer 1                           54,488,612.90               54,488,612.90                    100.00% deteriorates and is not
                                                                                                           expected to be recovered

                                                                                                           Customer credit status
Customer 2                           23,857,146.77               23,857,146.77                    100.00% deteriorates and is not
                                                                                                           expected to be recovered

                                                                                                           Customer credit status
Customer 3                           21,739,381.96               21,739,381.96                    100.00% deteriorates and is not
                                                                                                           expected to be recovered

                                                                                                           Customer credit status
Customer 4                           15,239,752.83               15,239,752.83                    100.00% deteriorates and is not
                                                                                                           expected to be recovered

                                                                                                           Customer credit status
Customer 5                            9,071,535.95                9,071,535.95                    100.00% deteriorates and is not
                                                                                                           expected to be recovered

                                                                                                           Customer credit status
Customer 6                            2,624,629.35                2,624,629.35                    100.00% deteriorates and is not
                                                                                                           expected to be recovered

                                                                                                           --

Total                               127,021,059.76            127,021,059.76 --                            --

Provision for bad debts by combination: ageing combination
                                                                                                                          In RMB RMB

                                                                           Closing balance
              Name
                                     Remaining book value                 Bad debt provision                    Provision rate

Account age                                   2,349,960,687.64                      238,196,191.85                               10.14%


Including: Less than 1 year                                                                                                      1.62%
                                              1,316,400,399.53                       21,347,072.62


1-2 years                                                                                                                        5.29%
                                                 315,436,939.74                      16,696,752.05


2-3 years                                                                                                                        12.30%
                                                 479,388,387.38                      58,947,402.12

3-4 years                                                                                                                        30.15%



                                                                                                                                      66
                                                                   Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


                                                     97,847,041.36                       29,501,993.23


4-5 years                                                                                                                         53.33%
                                                     62,534,358.77                       33,349,410.98


Over 5 years                                                                                                                      100.00%
                                                     78,353,560.86                       78,353,560.86

Total                                              2,349,960,687.64                     238,196,191.85 --



Provision for bad debts by combination: assets state combination

                                                                             Closing balance
               Name
                                       Remaining book value                Bad debt provision                    Provision rate

Asset status group - amount of
real estate services sold by bank                     7,140,000.00                                0.00                             0.00%
mortgage payment

Total                                                 7,140,000.00                                0.00 --



If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, please
refer to the disclosure of other receivables to disclose information about bad debts:
□ Applicable √ Inapplicable
Account age
                                                                                                                            In RMB RMB

                                 Age                                                           Closing balance

Within 1 year (inclusive)                                                                                             1,323,540,399.53

1-2 years                                                                                                                 315,436,939.74

2-3 years                                                                                                                 479,388,387.38

Over 3 years                                                                                                              365,756,020.75

   3-4 years                                                                                                               97,847,041.36

   4-5 years                                                                                                               62,534,358.77

   Over 5 years                                                                                                           205,374,620.62

Total                                                                                                                 2,484,121,747.40

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 receivables for that have a single major amount over three years:
                                                                                                                     Whether
                                                         Bad debt provision
                         Balance of accounts                                                                        there is a
   Customer                                              corresponding to                 Reason of the age
                      receivable of over 3 years                                                                     risk of
                                                        accounts receivable
                                                                                                                    recovery
 Customer 1                     12,304,991.24                12,304,991.24              Not settled                  No
 Customer 2                     16,720,646.17                 8,257,370.58              Not settled                  No

                                                                                                                                        67
                                                                  Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


 Customer 3                  11,252,441.38                 11,252,441.38             Not settled                      No
 Customer 4                  25,419,437.23                     9,992,772.71          Not settled                      No
 Customer 5                  17,236,181.15                 13,248,481.17             Not settled                      No
                                                                                     Customer credit status
 Customer 6                  15,239,752.83                 15,239,752.83          deteriorates                        Yes
                                                                                     Customer credit status
 Customer 7                  52,147,883.25                 52,147,883.25          deteriorates                        Yes
                                                                                     Customer credit status
 Customer 8                  23,845,280.56                 23,845,280.56          deteriorates                        Yes


 Total                      174,166,613.80                146,288,973.71



(2) Bad debt provision made, returned or recovered in the period

Bad debt provision made in the period:
                                                                                                                             In RMB RMB

                                                                    Change in the period
         Type           Opening balance                               Written-back or                                 Closing balance
                                                   Provision                                       Canceled
                                                                         recovered

Account age                 226,696,269.23          11,592,327.74              92,405.12                                   238,196,191.85

Separate provision          127,037,156.92                                     16,097.16                                   127,021,059.76

Total                       353,733,426.15          11,592,327.74             108,502.28                                   365,217,251.61


(3) 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 RMB432,760,086.90, accounting for 17.42% of the total
remaining balance of all accounts receivable. The bad debt provision made at the end of the period is RMB24,198,556.99.


(4) Receivables derecognized due to transfer of financial assets

The amount of accounts receivable that were terminated due to the handling of accounts receivable factoring was RMB23,199,471.52,
and the related losses were RMB1,483,903.77.


6. Prepayment

(1) Account age of prepayments

                                                                                                                             In RMB RMB

         Age                               Closing balance                                          Opening balance

                                  Amount                   Proportion                    Amount                   Proportion

   Less than 1 year                69,451,482.64                     94.44%                43,589,102.44                       93.82%


                                                                                                                                        68
                                                                  Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


         1-2 years                   2,437,763.23                      3.31%                 1,521,693.56                    3.28%

         2-3 years                      569,443.33                     0.77%                  444,183.24                     0.96%

        Over 3 years                 1,081,617.88                      1.47%                  899,865.50                     1.94%

Total                              73,540,307.08                 --                         46,454,844.74            --




(2) Balance of top 5 prepayments at the end of the period

The total of top5 prepayments in terms of the prepaid entities in the period is RMB47,237,577.13, accounting for 64.23 % of the total
prepayments at the end of the period.


7. Other receivables

                                                                                                                          In RMB RMB

                       Item                                Closing balance                              Opening balance

Interest receivable                                                            366,666.66

Other receivables                                                        162,169,869.87                              142,135,200.55

Total                                                                    162,536,536.53                              142,135,200.55


(1) Receivable interest

1) Receivable interest
                                                                                                                          In RMB RMB

                       Item                                Closing balance                              Opening balance

Short-term loans                                                               366,666.66

Total                                                                          366,666.66

2) Method of bad debt provision
□ Applicable √ Inapplicable


(2) Other receivables

1) Other receivables are disclosed by nature
                                                                                                                          In RMB RMB

                     By nature                       Closing balance of book value               Opening balance of book value

Deposit                                                                  119,215,299.78                              113,697,386.43

Construction borrowing and advanced
                                                                          33,188,517.83                               32,493,474.69
payment

Staff borrowing and petty cash                                               2,825,341.40                                 2,717,122.22

Receivable refund of VAT                                                     1,602,636.19                                 1,334,691.51


                                                                                                                                     69
                                                                         Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


Luo Huichi                                                                        13,030,000.00                            13,030,000.00

Others                                                                            23,435,807.57                            17,602,550.86

Total                                                                           193,297,602.77                           180,875,225.71

2) Method of bad debt provision
                                                                                                                            In RMB RMB

                                   First stage                   Second stage                     Third stage

                                Expected credit           Expected credit loss for the Expected credit loss for the
   Bad debt provision                                                                                                     Total
                              losses in the next 12        entire duration (no credit        entire duration (credit
                                    months                       impairment)                impairment has occurred)

Balance on January 1,
2019                                   2,515,904.25                         12,151.99                   36,211,968.92      38,740,025.16

Balance on January 1,
2019 in the current
                                                                                                                            -
period

-- transferred to the third
stage                                        -89.40                            -360.00                          449.40                   -


Provision
                                        510,666.88                                      -                1,957,198.21       2,467,865.09

Transferred back in the
current period                          204,996.16                           5,207.82                    9,371,670.75       9,581,874.73

Canceled in the current
period                                                -                                 -                  498,282.61           498,282.61


Balance on June 30, 2019
                                       2,821,485.56                          6,584.17                   28,299,663.17      31,127,732.90

Changes in book balances with significant changes in the current period
□ Applicable √ Inapplicable
Account age
                                                                                                                            In RMB RMB

                                 Age                                                                  Closing balance

Within 1 year (inclusive)                                                                                                130,546,068.15

Less than 1 year                                                                                                         130,546,068.15

1-2 years                                                                                                                  26,363,457.85

2-3 years                                                                                                                   3,236,784.03

Over 3 years                                                                                                               33,151,292.74

   3-4 years                                                                                                                5,298,345.47

   4-5 years                                                                                                               10,527,048.10

   Over 5 years                                                                                                            17,325,899.17


                                                                                                                                        70
                                                                     Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


Total                                                                                                                    193,297,602.77

3) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
                                                                                                                           In RMB RMB

           Type             Opening balance                          Change in the period                          Closing balance

                                                         Provision        Written-back or      Canceled
                                                                               recovered

Other receivables and          38,740,025.16        2,467,865.09                                                   31,127,732.90
                                                                                              498,282.61
bad debt provision                                                          9,581,874.73

Total                          38,740,025.16        2,467,865.09                                                   31,127,732.90
                                                                                              498,282.61
                                                                            9,581,874.73

4) Other receivable written off in the current period
                                                                                                                           In RMB RMB

                                  Item                                                           Amount

Other receivable written off                                                                                                 498,282.61

5) Balance of top 5 other receivables at the end of the period
                                                                                                                           In RMB RMB

                                                                                                                    Balance of bad debt
        Entity                 By nature        Closing balance                 Age           Percentage (%)        provision at the end
                                                                                                                       of the period

Shenzhen Yikang         Deposit and
                                                        70,000,000.00 Less than 1 year                  36.21%             1,043,000.00
Real Estate Co. Ltd. advancement

Bangshen
Electronics             Deposit                         20,000,000.00 1-2 years                         10.35%               298,000.00
(Shenzhen) Co., Ltd.

Shenzhen Tianyi
Xinglong Industrial Short-term loans                    15,000,000.00 Less than 1 year                     7.76%             223,500.00
Co. Ltd.

Luo Huichi              Advancement                     13,030,000.00 Over 5 years                         6.74%          13,030,000.00

Lanzhou Railway
                        Deposit                          6,931,316.60 4-5 年                               3.59%             103,276.62
Transport Co., Ltd.

Total                              --              124,961,316.60                 --                    64.65%            14,697,776.62


8. Inventories

Whether the new revenue guidelines are implemented
□ Yes √ No




                                                                                                                                       71
                                                                Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


(1) Classification of inventories

                                                                                                                   In RMB RMB

                                      Closing balance                                         Opening balance
        Item        Remaining book     Depreciation                         Remaining book     Depreciation
                                                           Book value                                             Book value
                         value           provision                              value            provision

Raw materials         65,254,311.96        608,404.99      64,645,906.97      61,897,942.32        608,404.99     61,289,537.33

Product in
                      14,322,898.95                        14,322,898.95      24,655,294.74                       24,655,294.74
process

Finished goods in
                      11,776,275.15                        11,776,275.15       5,611,267.61                        5,611,267.61
stock

Turnover
                          45,080.77                             45,080.77         25,215.87                           25,215.87
materials

Assets unsettled
for finished
                     141,287,728.84      1,603,589.59     139,684,139.25     153,610,458.94      1,603,589.59    152,006,869.35
construction
contracts

Development cost     382,164,950.93                       382,164,950.93     232,622,862.96                      232,622,862.96

Development
                     195,773,702.31     62,777,961.10     132,995,741.21     235,332,474.86     62,777,961.10    172,554,513.76
products

OEM materials          4,760,546.83                          4,760,546.83      2,640,270.67                        2,640,270.67

Total                815,385,495.74     64,989,955.68     750,395,540.06     716,395,787.97     64,989,955.68    651,405,832.29

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 RMB

                                            Increase in this period              Decrease in this period
        Item        Opening balance                                           Recover or                        Closing balance
                                        Provision            Others                               Others
                                                                               write-off

Raw materials            608,404.99                                                                                  608,404.99

Assets unsettled
for finished
                       1,603,589.59                                                                                1,603,589.59
construction
contracts

Development
                      62,777,961.10                                                                               62,777,961.10
products



                                                                                                                               72
                                                               Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


Total                  64,989,955.68                                                                             64,989,955.68


(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 RMB8,556,289.84. The
capitalization amount of cumulative borrowing expenses is RMB162,497,489.70, of which RMB0.00 occurred in this year.




(4) Assets unsettled for finished construction contracts at the end of the period

                                                                                                                    In RMB RMB

                               Item                                                         Amount

Accumulative occurred costs                                                                                   7,692,637,956.84

Accumulative recognized gross margin                                                                          1,144,425,387.77

Less: estimated loss                                                                                                1,603,589.59

     Settled amount                                                                                           8,695,775,615.77

Assets unsettled for finished construction contracts                                                            139,684,139.25

Others:


9. Other current assets

Whether the new revenue guidelines are implemented
□ Yes √ No
                                                                                                                    In RMB RMB

                     Item                               Closing balance                           Opening balance

Overpaid or prepaid VAT                                                12,005,792.40                                 264,337.68

Input tax to be deducted                                               14,865,684.27                             38,782,071.20

Tax to be input                                                        53,171,279.10                             12,498,193.14

Bank financial products                                                   9,900,000.00

Prepaid income tax                                                        4,134,958.16                                  3,469.12

Other prepaid taxes

 Trusted loans                                                         20,000,000.00

Others                                                                     216,674.88                                150,040.00

Total                                                                 114,294,388.81                              51,698,111.14

Others:


10. Long-term share equity investment

                                                                                                                    In RMB RMB


                                                                                                                              73
                                                                    Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


                                                             Change (+,-)                                                   Balance
                                             Investme                                                                          of
                                                           Other
                                              nt gain                             Cash                                      impairme
                                  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 end
                                      t                   adjustmen
                                             the equity                             d                                         of the
                                                              t
                                              method                                                                         period

1. Joint venture

2. Associate

Shenzhen
Ganshang
Joint       8,351,180                                                                                          8,360,474
                                              9,293.57
Investme            .78                                                                                               .35
nt Co.,
Ltd.

Shenzhen
Huihai
Yirong      6,071,585                                                                                          6,071,975
                                                390.12
Internet            .28                                                                                               .40
Service
Co., Ltd.

Jiangxi
Business
Innovativ
e           55,682,89                        -335,417.                                                         55,347,47
Property           1.82                             24                                                               4.58
Joint
Stock
Co., Ltd.

            70,105,65                        -325,733.                                                         69,779,92
Subtotal
                   7.88                             55                                                               4.33

            70,105,65                        -325,733.                                                         69,779,92
Total
                   7.88                             55                                                               4.33




11. Investment in other equity tools

                                                                                                                         In RMB RMB

                     Item                                   Closing balance                            Opening balance

Financial assets measured at fair value                                     21,674,008.23                             21,674,008.23


                                                                                                                                       74
                                                                 Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


with variations accounted into current
income account

Total                                                                     21,674,008.23                                21,674,008.23

Sub-disclosure of non-tradable equity instrument investment in the current period
                                                                                                                         In RMB RMB

                                                                                                    Reason for
                                                                             Amount of other      measurement at
                                                                                                                       Reason for
                         Dividend                                            comprehensive        fair value with
                                                                                                                     transfer of other
        Project       recognized in the      Total gain      Total loss             income           variations
                                                                                                                      miscellaneous
                             period                                           transferred to      accounted into
                                                                                                                       into income
                                                                             retained earnings    current income
                                                                                                      account

                                                                                                 The investment is
Investment in                                                                                    a non-trading
                                                              6,888,567.44
Shenyang Fangda                                                                                  equity instrument
                                                                                                 investment

Others:


IX. Investment real estates

(1) Investment real estate measured at costs

√ Applicable □ Inapplicable
                                                                                                                         In RMB RMB

            Item                 Houses & buildings       Land using right       Construction in process              Total

I. Book value

1. Opening balance                        33,376,276.41                                                                33,376,276.41

2. Increase in this period

(1) External purchase

(2) Transfer-in from
inventory\fixed
assets\construction in
progress

(3) Increase due to
enterprise merger



3. Decrease in this period

(1) Disposal

(2) Other transfer-out



                                                                                                                                      75
                                                              Interim Financial Statements 2019 of China Fangda Group Co., Ltd.




4. Closing balance                     33,376,276.41                                                            33,376,276.41

II. Accumulative
depreciation and
amortization

1. Opening balance                      7,829,937.28                                                             7,829,937.28

2. Increase in this period                431,100.48                                                               431,100.48

(1) Provision or
                                          431,100.48                                                               431,100.48
amortization



3. Decrease in this period

(1) Disposal

(2) Other transfer-out



4. Closing balance                      8,261,037.76                                                             8,261,037.76

III. Impairment provision

1. Opening balance

2. Increase in this period

(1) Provision



3. Decrease in this period

(1) Disposal

(2) Other transfer-out



4. Closing balance

IV. Book value

1. Closing book value                  25,115,238.65                                                            25,115,238.65

2. Opening book value                  25,546,339.13                                                            25,546,339.13


(2) Investment real estate measured at fair value

√ Applicable □ Inapplicable
                                                                                                                 In RMB RMB

           Item                 Houses & buildings     Land using right     Construction in process            Total

I. Opening balance                  5,230,896,067.50                                                         5,230,896,067.50

II. Change in this period              29,292,017.43                                                            29,292,017.43


                                                                                                                            76
                                                                   Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


Add: external purchase                    29,292,017.43                                                                   29,292,017.43

           Transfer-in
from inventory\fixed
assets\construction in
progress

           Increase due to
enterprise merger

Less: disposal

           Other
transfer-out

Change in fair value



III. Closing balance                  5,260,188,084.93                                                                  5,260,188,084.93


(3) Investment real estate without ownership certificate

                                                                                                                             In RMB RMB

                    Item                                       Book value                                      Reason

                                                                                             Conditions for applying for property right
Fangda Square phase 2 (building 1#)                                     3,693,096,836.44
                                                                                             are not met

Other note


13. Fixed assets

                                                                                                                             In RMB RMB

                    Item                                     Closing balance                               Opening balance

Fixed assets                                                                431,948,450.66                               455,274,241.83

Total                                                                       431,948,450.66                               455,274,241.83


(1) Fixed assets

                                                                                                                             In RMB RMB

                          Houses &                             Mechanical       Transportation      Electronics and
         Item                             PV power plants                                                                     Total
                          buildings                            equipment           facilities        other devices

I. Original book
value:

  1. Opening
                         358,968,236.21     129,598,135.58    121,456,045.88      20,192,421.26        50,661,366.23     680,876,205.16
balance

  2. Increase in              11,551.72                           396,551.70       1,155,627.85            404,586.24        1,968,317.51


                                                                                                                                          77
                                                            Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


this period

     (1) Purchase         11,551.72                       396,551.70        599,593.36        404,586.24       1,412,283.02

     (2)
Transfer-in of
                                                                            556,034.49                           556,034.49
construction in
progress

     (3) Increase
due to enterprise
merger



  3. Decrease in
                      17,407,839.09                                                           409,874.13      17,817,713.22
this period

     (1) Disposal
                      17,407,839.09                                                           409,874.13      17,817,713.22
or retirement



  4. Closing
                     341,571,948.84   129,598,135.58   121,852,597.58    21,348,049.11     50,656,078.34    665,026,809.45
balance

II. Accumulative
depreciation

  1. Opening
                      64,933,358.20    16,053,677.73    97,725,735.85    14,703,576.75     27,741,708.68    221,158,057.21
balance

  2. Increase in
                       4,689,117.20     3,077,696.52     1,985,326.22       649,658.42       1,050,166.12     11,451,964.48
this period

     (1) Provision     4,689,117.20     3,077,696.52     1,985,326.22       649,658.42       1,050,166.12     11,451,964.48



  3. Decrease in
                        522,267.50                                                            363,784.90         886,052.40
this period

     (1) Disposal
                        522,267.50                                                            363,784.90         886,052.40
or retirement



  4. Closing
                      69,100,207.90    19,131,374.25    99,711,062.07    15,353,235.17     28,428,089.90    231,723,969.29
balance

III. Impairment
provision

  1. Opening
                       3,089,516.62                      1,354,389.50                                          4,443,906.12
balance

  2. Increase in
this period



                                                                                                                          78
                                                                   Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


     (1) Provision



  3. Decrease in
                            3,089,516.62                                                                                  3,089,516.62
this period

     (1) Disposal
                            3,089,516.62                                                                                  3,089,516.62
or retirement



  4. Closing
                                                                1,354,389.50                                              1,354,389.50
balance

IV. Book value

  1. Closing
                      272,471,740.95        110,466,761.33     20,787,146.01       5,994,813.94     22,227,988.44       431,948,450.67
book value

  2. Opening
                      290,945,361.39        113,544,457.85     22,375,920.53       5,488,844.51     22,919,657.55       455,274,241.83
book value


(2) Fixed assets without ownership certificate

                                                                                                                          In RMB RMB

                     Item                                      Book value                                      Reason

Houses in Urumuqi for offsetting debt                                          518,320.35 Historical reasons

Yuehai Office Building C 502                                                   133,669.53 Historical reasons


14. Construction in process

                                                                                                                          In RMB RMB

                     Item                                    Closing balance                           Opening balance

Construction in process                                                     90,993,650.25                                58,269,452.72

Total                                                                       90,993,650.25                                58,269,452.72


(1) Construction in progress

                                                                                                                          In RMB RMB

                                           Closing balance                                        Opening balance
        Item         Remaining book          Impairment                        Remaining book       Impairment
                                                               Book value                                               Book value
                             value            provision                             value            provision

Chengda
Fangda’s Xinjin
                       20,258,659.98                           20,258,659.98      14,150,785.10                          14,150,785.10
energy-saving
green curtain wall


                                                                                                                                     79
                                                                        Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


project

4th and 39th
floors of Building      44,573,553.71                                44,573,553.71         42,648,816.23                              42,648,816.23
1 of Fangda Town

Fangda Group
East China
                        26,059,712.42                                26,059,712.42           1,368,127.25                              1,368,127.25
Construction
Base Project

Pingxiang
Xuanfeng
Chayuan
Photovoltaic
Power Plant
Network Security
Protection and             101,724.14                                  101,724.14             101,724.14                                    101,724.14
Increased
Dispatching Data
Network
Technical
Transformation
Project

Total                   90,993,650.25                                90,993,650.25         58,269,452.72                              58,269,452.72


(2) Changes in major construction in process in this period

                                                                                                                                       In RMB RMB

                                                                                 Proporti
                                            +Amoun                                                                   Includin
                                                                                   on of
                                                t                                                                       g:
                                                                                 accumul                 Accumul
                                            transfer-i     Other                                                     capitaliz
                                 Increase                                          ative                  ative                  Interest
                       Opening                n to        decrease Closing                    Project                   ed                    Capital
 Project     Budget               in this                                        engineeri               capitaliz               capitaliz
                       balance                fixed        in this    balance                 progress               interest                  source
                                 period                                             ng                      ed                   ation rate
                                            assets in     period                                                     for the
                                                                                 investme                interest
                                              this                                                                   current
                                                                                 nt in the
                                             period                                                                   period
                                                                                  budget

Chengda
Fangda’s
Xinjin
             32,317,7 14,150,7 6,663,90 556,034.                      20,258,6
energy-s                                                                          64.41% 64.41%                                               Others
               00.00     85.10       9.37            49                 59.98
aving
green
curtain



                                                                                                                                                        80
                                                                Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


wall
project

4th and
39th                                                                                                                  Loans
floors of                                                                                                             from
              78,713,2 42,648,8 1,924,73                     44,573,5                       3,253,13
Building                                                                 56.63% 56.63%                                financial
                 72.01   16.23      7.48                        53.71                           6.04
1 of                                                                                                                  institutio
Fangda                                                                                                                ns
Town

Fangda
Group
East
              92,537,7 1,368,12 24,691,5                     26,059,7
China                                                                    28.16% 28.16%                                Others
                 67.36    7.25     85.17                        12.42
Construc
tion Base
Project

              203,568, 58,167,7 33,280,2 556,034.            90,891,9                       3,253,13
Total                                                                      --        --                                    --
               739.37    28.58     32.02      49                26.11                           6.04


15. Intangible assets

(1) Intangible assets

                                                                                                                   In RMB RMB

                                                                        Unpatented
          Item            Land using right          Patent                                Computer software        Total
                                                                     technologies

I. Book value

       1. Opening
                              78,910,915.74         10,658,429.57         7,820,118.89          7,776,751.03    105,166,215.23
balance

       2. Increase in
                                                      874,996.41                                   15,517.24        890,513.65
this period

          (1) Purchase                                874,996.41                                   15,517.24        890,513.65



  3. Decrease in this
period

          (1) Disposal



       4. Closing
                              78,910,915.74         11,533,425.98         7,820,118.89          7,792,268.27    106,056,728.88
balance

II. Accumulative


                                                                                                                                81
                                                                 Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


amortization

     1. Opening
                             10,699,400.13           4,136,325.64          4,860,551.51          5,156,697.28         24,852,974.56
balance

     2. Increase in
                              1,131,134.80             116,100.05            196,352.52            318,539.77          1,762,127.14
this period

        (1) Provision         1,131,134.80             116,100.05            196,352.52            318,539.77          1,762,127.14



     3. Decrease in
this period

        (1) Disposal



     4. Closing
                             11,830,534.93           4,252,425.69          5,056,904.03          5,475,237.05         26,615,101.70
balance

III. Impairment
provision

     1. Opening
balance

     2. Increase in
this period

        (1) Provision



     3. Decrease in
this period

     (1) Disposal



     4. Closing
balance

IV. Book value

     1. Closing book
                             67,080,380.81           7,281,000.29          2,763,214.86          2,317,031.22         79,441,627.18
value

     2. Opening
                             68,211,515.61           6,522,103.93          2,959,567.38          2,620,053.75         80,313,240.67
book value

Intangible asset formed by internal R&D of the period takes up 3.35% in the closing total book value of intangible assets.


(2) Failure to obtain the land use right certificates

                                                                                                                       In RMB RMB

                      Item                                   Book value                                    Reason


                                                                                                                                  82
                                                                      Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


None


16. Long-term amortizable expenses

                                                                                                                             In RMB RMB

                                                 Increase in this       Amortized amount
          Item            Opening balance                                                          Other decrease       Closing balance
                                                     period                  in this period

Xuanfeng Chayuan
village and Zhuyuan
                               1,196,831.78                                         28,050.78                                1,168,781.00
village land transfer
compensation

Dongguan separation
                                                        578,568.18                  48,214.00                                 530,354.18
project

Membership fee                  917,499.68                                         140,000.04                                 777,499.64

Total                          2,114,331.46             578,568.18                 216,264.82                                2,476,634.82

Other note


17. Differed income tax assets and differed income tax liabilities

(1) Non-deducted deferred income tax assets

                                                                                                                             In RMB RMB

                                               Closing balance                                          Opening balance
             Item            Deductible temporary        Deferred income tax            Deductible temporary        Deferred income tax
                                  difference                        assets                    difference                  assets

Assets impairment
                                     555,303,413.82                 100,709,002.53               548,921,196.79             99,738,006.66
provision

Deductible loss                      145,912,366.83                  36,140,607.46               116,934,707.17             28,982,381.41

Donation                                700,000.00                      175,000.00                   700,000.00                175,000.00

Unrealizable gross profit            127,495,913.33                  31,873,978.34               171,832,174.62             42,958,043.66

Reserved expense                     172,926,596.90                  43,001,199.49               172,319,511.23             42,910,136.64

Deferred earning                        768,110.52                      110,691.46                 2,588,555.38                383,758.20

Anticipated liabilities                6,672,052.01                   1,000,807.80                 6,831,162.99              1,024,674.45

Arbitrage gain and loss                                                                            1,625,725.00                243,858.75

Provided unpaid taxes                576,157,148.36                 144,039,287.08               547,012,606.17            136,753,151.54

Total                              1,585,935,601.77                 357,050,574.16              1,568,765,639.35           353,169,011.31




                                                                                                                                          83
                                                                       Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


(2) Non-deducted deferred income tax liabilities

                                                                                                                                 In RMB RMB

                                                 Closing balance                                          Opening balance
              Item              Taxable temporary          Deferred income tax            Taxable temporary          Deferred income tax
                                    difference                     liabilities                difference                    liabilities

Gain/loss caused by
                                     4,059,173,007.74              1,014,793,251.92             4,059,575,421.10            1,014,893,855.26
changes in fair value

Estimated gross margin
when Fangda Town
records income, but does               116,989,503.25                 29,247,375.80              108,771,380.35                27,192,845.09
not reach the taxable
income level

Arbitrage gain and loss                      17,375.00                       2,606.25

Total                                4,176,179,885.99              1,044,043,233.97             4,168,346,801.45            1,042,086,700.35


(3) Net deferred income tax assets or liabilities listed

                                                                                                                                 In RMB 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
                                                                     357,050,574.16                                           356,474,925.76
assets

Deferred income tax
                                                                   1,044,043,233.97                                         1,042,086,700.35
liabilities


(4) Details of unrecognized deferred income tax assets

                                                                                                                                 In RMB RMB

                       Item                                   Closing balance                                 Opening balance

Deductible temporary difference                                                    411,124.79                                      144,013.55

Deductible loss                                                                  4,687,234.98                                    3,432,612.47

Total                                                                            5,098,359.77                                    3,576,626.02


(5) Deductible losses of the un-recognized deferred income tax asset will expire in the following years

                                                                                                                                 In RMB RMB

                Year                        Closing amount                       Opening amount                          Remark


                                                                                                                                              84
                                                            Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


2022                                             1,093,587.53                  1,093,587.53

2023                                             2,309,302.94                  2,339,024.94

2024                                             1,284,344.51

Total                                            4,687,234.98                  3,432,612.47                --

Others:


18. Other non-current assets

Whether the new revenue guidelines are implemented
□ Yes √ No
                                                                                                                 In RMB RMB

                    Item                             Closing balance                           Opening balance

Prepaid house and equipment amount                                 23,877,762.00                                19,296,006.00

Prepayment of intangible assets                                         64,077.67                                  64,077.67

Total                                                              23,941,839.67                                19,360,083.67

Others:


19. Short-term borrowings

(1) Classification of short-term borrowings

                                                                                                                 In RMB RMB

                    Item                             Closing balance                           Opening balance

Guarantee loan                                                    400,000,000.00

Credit borrow                                                                                                    8,000,000.00

Discount borrowing of acceptance bills                            500,000,000.00                            200,000,000.00

Total                                                             900,000,000.00                            208,000,000.00


(2) Mature but not repaid short-term borrowings

None


20. Derivative financial liabilities

                                                                                                                 In RMB RMB

                    Item                             Closing balance                           Opening balance

Futures contracts                                                            0.00                                1,625,725.00

Total                                                                        0.00                                1,625,725.00

Others:


                                                                                                                           85
                                                                Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


21. Notes payable

                                                                                                                       In RMB RMB

                   Type                                  Closing balance                             Opening balance

Commercial acceptance                                                   62,482,744.62                                89,593,075.92

Bank acceptance                                                        471,074,585.78                               418,271,442.27

Total                                                                  533,557,330.40                               507,864,518.19

The total amount of payable bills that have matured but not been paid at the end of the period is RMB140,671.59.


22. Account payable

(1) Account payable

                                                                                                                       In RMB RMB

                   Item                                  Closing balance                             Opening balance

Account repayable and engineering
                                                                       697,113,970.77                               735,661,625.17
repayables

Construction payable                                                       8,303,482.25                              17,976,531.41

Payable installation and implementation
                                                                       241,243,003.99                               280,338,258.89
fees

Others                                                                     6,637,939.57                                5,654,383.17

Total                                                                  953,298,396.58                              1,039,630,798.64


(2) Significant payables aging more than 1 year

                                                                                                                       In RMB RMB

                   Item                                  Closing balance                                 Reason

Supplier 1                                                              54,662,151.82 Not mature

Supplier 2                                                                 4,952,636.16 Not mature

Supplier 3                                                                 4,787,063.43 Not mature

Supplier 4                                                                 4,685,268.91 Not mature

Supplier 5                                                                 2,656,994.38 Not mature

Total                                                                   71,744,114.70                       --




23. Prepayment received

Whether the new revenue guidelines are implemented
□ Yes √ No


                                                                                                                                 86
                                                                     Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


(1) Prepayment received

                                                                                                                           In RMB RMB

                    Item                                   Closing balance                              Opening balance

Curtain wall and screen door engineering
                                                                           123,111,480.41                                223,438,696.72
payment

Material loan                                                                 6,269,201.91                                 3,988,573.19

Real estate sales payment                                                     1,500,000.00                                49,542,377.00

Others                                                                        1,550,380.93                                 1,608,201.63

Total                                                                      132,431,063.25                                278,577,848.54


(2) Significant prepayment aged more than 1 year

                                                                                                                           In RMB RMB

                    Item                                   Closing balance                                     Reason

None


(3) Assets settled for unfinished construction contracts at the end of the period

                                                                                                                           In RMB RMB

                               Item                                                                Amount

Accumulative occurred costs                                                                                             7,692,637,956.84

Accumulative recognized gross margin                                                                                    1,144,425,387.77

Less: estimated loss                                                                                                       1,603,589.59

     Settled amount                                                                                                     8,695,775,615.77

Assets settled for unfinished construction contracts at the end of
                                                                                                                         139,684,139.25
the period




24. Employees’ wage payable

(1) Employees’ wage payable

                                                                                                                           In RMB RMB

             Item              Opening balance                 Increase                      Decrease             Closing balance

1. Short-term
                                       44,497,660.77             136,339,637.60               156,927,275.35              23,910,023.02
remuneration

2. Retirement pension
                                           15,401.40                 5,043,692.50               5,043,692.50                  15,401.40
program-defined


                                                                                                                                      87
                                                         Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


contribution plan

3. Dismiss compensation                                     822,691.64                   822,691.64

Total                              44,513,062.17        142,206,021.74               162,793,659.49          23,925,424.42


(2) Short-term remuneration

                                                                                                                 In RMB RMB

            Item             Opening balance          Increase                      Decrease           Closing balance

1. Wage, bonus,
                                   42,874,045.67        128,937,448.36               149,544,326.01          22,267,168.02
allowance and subsidies

2. Employee welfare                    36,000.00          3,062,035.64                 3,059,611.64                38,424.00

3. Social insurance                                       1,978,422.20                 1,978,422.20

      Including: medical
                                                          1,649,105.46                 1,649,105.46
insurance

             Labor injury
                                                            113,820.62                   113,820.62
insurance

             Breeding
                                                            215,496.12                   215,496.12
insurance

4. Housing fund                        70,162.00          2,091,365.79                 2,046,747.79               114,780.00

5. Labor union budget
                                    1,517,453.10            270,365.61                   298,167.71              1,489,651.00
and staff education fund

Total                              44,497,660.77        136,339,637.60               156,927,275.35          23,910,023.02


(3) Defined contribution plan

                                                                                                                 In RMB RMB

            Item             Opening balance          Increase                      Decrease           Closing balance

1. Basic pension                       15,401.40          4,884,912.46                 4,884,912.46                15,401.40

2. Unemployment
                                                            158,780.04                   158,780.04
insurance

Total                                  15,401.40          5,043,692.50                 5,043,692.50                15,401.40

Others:


25. Taxes payable

                                                                                                                 In RMB RMB

                      Item                         Closing balance                             Opening balance

VAT                                                                  6,787,755.62                                7,964,966.19



                                                                                                                           88
                                                  Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


Enterprise income tax                                         9,802,627.08                          96,212,929.73

Personal income tax                                            889,027.16                               793,577.50

City maintenance and construction tax                         1,113,929.01                             1,234,675.98

Land using tax                                                 394,688.91                               242,021.60

Property tax                                                  1,607,524.83                              248,910.70

Education surtax                                               560,717.76                               609,781.62

Local education surtax                                         235,466.39                               278,944.66

Others                                                          41,062.14                               124,191.21

Total                                                     21,432,798.90                           107,709,999.19

Others:


26. Other payables

                                                                                                       In RMB RMB

                     Item                   Closing balance                          Opening balance

Interest payable                                              2,423,014.69                             2,098,971.44

Other payables                                           833,927,274.12                           811,019,728.40

Total                                                    836,350,288.81                           813,118,699.84


(1) Interest payable

                                                                                                       In RMB RMB

                     Item                   Closing balance                          Opening balance

Long-term borrowing with interest
installment and repayment of principal                        1,994,724.40                             2,087,371.44
upon maturity

Short-term borrowing interests payable                         428,290.29                                11,600.00

Total                                                         2,423,014.69                             2,098,971.44

Significant interest overdue but not paid
                                                                                                       In RMB RMB

                   Borrower                 Overdue amount                               Reason

None

Others:


(2) Other payables

1) Other payables presented by nature
                                                                                                       In RMB RMB


                                                                                                                 89
                                                                 Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


                    Item                                  Closing balance                            Opening balance

Performance and quality deposit                                          51,980,294.06                               47,901,945.63

Reserved expense                                                        178,642,606.76                              182,260,114.71

Tax withheld                                                            576,157,148.36                              547,012,606.17

Fangda Town pledge                                                          100,000.00                               22,236,150.00

Others                                                                   27,047,224.94                               11,608,911.89

Total                                                                   833,927,274.12                              811,019,728.40

(2) Significant payables aging more than 1 year
                                                                                                                       In RMB RMB

                    Item                                  Closing balance                                 Reason

Tax withheld                                                            505,714,806.86 See Note

Total                                                                   505,714,806.86                       --

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 year are mainly the land value-added tax of RMB505,714,806.86,
which is not yet settled.




27. Non-current liabilities due within 1 year

                                                                                                                       In RMB RMB

                    Item                                  Closing balance                            Opening balance

Long-term loans due within 1 year                                       800,000,000.00                              200,000,000.00

Total                                                                   800,000,000.00                              200,000,000.00




28. Other current liabilities

Whether the new revenue guidelines are implemented
□ Yes √ No
                                                                                                                       In RMB RMB

                    Item                                  Closing balance                            Opening balance

Substituted money on VAT                                                 10,023,641.11                                 9,328,682.25

Total                                                                    10,023,641.11                                 9,328,682.25




                                                                                                                                   90
                                                                        Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


29. Long-term borrowings

(1) Classification of long-term borrowings

                                                                                                                                    In RMB RMB

                       Item                                       Closing balance                               Opening balance

Loan by pledge                                                                    493,978,153.39                               693,978,153.39

Guarantee loan                                                                    100,000,000.00

Credit borrow                                                                                                                  500,000,000.00

Total                                                                             593,978,153.39                              1,193,978,153.39

Notes to classification of long-term borrowings:
The above-mentioned borrowing is the 100% stock pledging of Fangda Property Development held by the Company.


Other note, including interest rate range:
The interest rate of long-term borrowings ranges between 4.9875%-5.88%.




30. Anticipated liabilities

Whether the new revenue guidelines are implemented
□ Yes √ No
                                                                                                                                    In RMB RMB

                Item                            Closing balance                     Opening balance                       Reason

                                                                                                              Estimated expense in the
Maintenance fee                                           6,672,052.01                         6,831,162.99
                                                                                                              product quality warranty period

Total                                                     6,672,052.01                         6,831,162.99                   --


31. Deferred earning

                                                                                                                                    In RMB RMB

         Item                 Opening balance           Increase                  Decrease            Closing balance              Reason

Government subsidy                10,401,161.30             800,000.00                244,419.98          10,956,741.32 See Note

Total                             10,401,161.30             800,000.00                244,419.98          10,956,741.32              --

Items involving government subsidies:
                                                                                                                                    In RMB 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



                                                                                                                                                 91
                                 Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


Major
investment
project prize
from Industry
and Trade                                                                            Assets-relate
                 1,680,952.70   28,571.40                             1,652,381.30
Development                                                                          d
Division of
Dongguan
Finance
Bureau

Massive
production
project of
air-breathing                                                                        Assets-relate
                 7,393,855.79   61,993.62                             7,331,862.17
double-layer                                                                         d
hollow glass
energy-savin
g curtain call

Railway
transport
screen door
controlling                                                                          Assets-relate
                   96,558.17     9,452.16                                87,106.01
system and                                                                           d
information
transmission
technology

Distributed
PV power
generation
project
subsidy                                                                              Assets-relate
                  418,750.13    12,499.98                               406,250.15
sponsored by                                                                         d
Dongguan
Reform and
Development
Commission

Luxi county
Xuanfeng
town
                                                                                     Assets-relate
government        181,004.51     1,862.82                               179,141.69
                                                                                     d
business
introduction
subsidy


                                                                                                 92
                                                                    Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


Shenzhen
SME Service
Bureau                                                                                                                  Assets-relate
                  500,000.00                                                                               500,000.00
enterprise IT                                                                                                           d
construction
subsidy

Shenzhen
Science and
Technology
Innovation                                                                                                              Earning-relat
                  130,040.00                                    130,040.00                                       0.00
Committee                                                                                                               ed
Technology
Innovation
Subsidy

East China
base fixed
                                                                                                                        Assets-relate
assets                           800,000.00                                                                800,000.00
                                                                                                                        d
renovation
project

                10,401,161.3                                                                             10,956,741.3
Total                            800,000.00                     244,419.98
                            0                                                                                       2

Others:
1. The Dongguan Finance Bureau Industry and Trade Development Division major subsidy project is a subsidized project not
stipulated in Dongguan Financial Circular [2013] No.779. As the project has formed into long-term assets, the Company treats it as
an assets-related government subsidy.
2. The massive production project of air-breathing double-layer hollow glass energy-saving curtain wall is a subsidied project
stipulated in Guangdong Financial Doc [2013] No.183. As the project has formed into long-term assets, the Company treats it as an
assets-related government subsidy.
3. The railway transport screen door controlling system and information transmission technology is a subsidized project stipulated in
Shenzhen Tech Innovation [2013] No.242. RMB300,000 is used to purchase equipment. Since the project will form long-term assets,
the company will use RMB300,000 as a government subsidy related to Assets.
4. The Dongguan Municipal Development and Reform Commission on the organization of the Dongguan City distributed
photovoltaic power generation subsidy program is based on the "Dongguan Municipal Development and Reform Commission's
Circular on Organizing the Application of Dongguan Distributed PV Generation Capital Subsidy Project" for various types of
buildings and structures using distributed photovoltaic power generation projects. Owners, according to the installed capacity of
250,000 yuan / MW for a one-time grant, the maximum subsidy for a single project does not exceed 2 million yuan, because the
project is related to assets, the company will use it as a government subsidy related to assets.
5. The Xuanfeng Town Government Investment Promotion Subsidy Project of Luxi County promoted the development of the local
economy. Xuanfeng Town Government of Luxi County introduced Luxin New Energy Company's solar photovoltaic power
generation project and gave Luxin New Energy Corporation subsidies for obtaining state-owned construction land use rights. As this
project is related to assets, the Company regards it as a government grant related to the assets.
6. The subsidy project of the Shenzhen Municipal Bureau of Small and Medium-sized Enterprises Service Enterprise Informatization


                                                                                                                                    93
                                                                    Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


Project is based on the relevant provisions of the Interim Measures for the Management of Special Funds for the Development of
Private and Small and Medium-sized Enterprises in Shenzhen (SCC (2012) No. 177) issued by the Shenzhen Municipal Bureau of
Small and Medium Business Administration. In 2017, the special fund enterprise informationization project subsidies, because the
project is related to assets, the company will use it as a government grant related to assets.
7. The subsidy project for the renovation and reconstruction of fixed assets of Huadong Base is funded by the Shanghai Economic
and Information Commission according to the relevant provisions of the “Administrative Measures for Special Funds for Industrial
Transformation and Upgrading in Shanghai” (Shanghai Economic and Trade Regulations [2015] No. 101). The project is related to
assets and the company uses it as a government grant related to assets.


32. Capital share

                                                                                                                                  In RMB

                      Opening                                        Change (+,-)                                           Closing
                      balance                                                                                               balance
                                    Issued new      Bonus shares     Transferre         Others            Subtotal
                                      shares                           d from
                                                                      reserves

Total of          1,155,481,68                                                       -32,097,497.0      -32,097,497.0    1,123,384,18
capital shares             6.00                                                                    0                 0           9.00

Others:
1. The decrease in share capital was due to the repurchase and cancellation of B shares by the company during the reporting period.
2. As of June 30, 2019, there were 1,431,568 shares subject to sale restrictions at the end of the period, of which 1,431,568 were held
by natural persons.


33. Capital reserve

                                                                                                                            In RMB RMB

           Item                   Opening balance                Increase                   Decrease                 Closing balance

Capital premium (share
                                                 94.24                                                                                94.24
capital premium)

Other capital reserves                   1,454,097.35                                                                       1,454,097.35

Total                                    1,454,191.59                                                                       1,454,191.59


34. Shares in stock

                                                                                                                            In RMB RMB

           Item                   Opening balance                Increase                   Decrease                 Closing balance

B share                                 10,831,437.66              88,223,945.70                 99,055,383.36                         0.00

Total                                   10,831,437.66              88,223,945.70                 99,055,383.36                         0.00

Other note, including explanation about the reason of the change:
In the current period, the relevant proposals of the previous year continued to repurchase and cancel the treasury shares.



                                                                                                                                         94
                                                                       Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


35. Other miscellaneous income

                                                                                                                                         In RMB RMB

                                                                        Amount occurred in the current period

                                                                                      Less:
                                                                                     amount
                                                                   Less: amount
                                                                                     written                                   After-tax
                                                                   written into
                                                                                    into other                 After-tax        amount
                                                                    other gains                    Less:
                                       Opening         Amount                       gains and                   amount         attributed Closing
                Item                                                    and                       Income
                                        balance         before                      transferred                attributed          to        balance
                                                                    transferred                     tax
                                                      income tax                       into                      to the         minority
                                                                   into gain/loss                 expenses
                                                                                     gain/loss                  parent         shareholde
                                                                    in previous
                                                                                        in                                         rs
                                                                       terms
                                                                                     previous
                                                                                      terms

1. Other misc. incomes that
                                      -5,166,425.5                                                                                           -5,166,4
cannot be re-classified into gain
                                                  8                                                                                            25.58
and loss

        Fair value change of          -5,166,425.5                                                                                           -5,166,4
investment in other equity tools                  8                                                                                            25.58

2. Other misc. incomes that will      7,382,087.5 1,636,239.                                      246,465.0 1,389,774.                       8,771,86
be re-classified into gain and loss               9          33                                            0              33                     1.92

                                      -1,290,746.2 1,643,100.                                     246,465.0 1,396,635.                       105,888.
        Cash flow hedge reserve
                                                  5          00                                            0              00                      75

        Translation difference of                                                                                                            -90,580.
                                       -83,719.62 -6,860.67                                                    -6,860.67
foreign exchange statement                                                                                                                        29

Investment real estate measured at 8,756,553.4                                                                                               8,756,55
fair value                                        6                                                                                              3.46

                                      2,215,662.0 1,636,239.                                      246,465.0 1,389,774.                       3,605,43
Other miscellaneous income
                                                  1          33                                            0              33                     6.34


36. Surplus reserves

                                                                                                                                         In RMB RMB

             Item               Opening balance                    Increase                       Decrease                     Closing balance

Statutory surplus
                                       121,000,081.43                                               66,957,886.36                       54,042,195.07
reserves

Total                                  121,000,081.43                                               66,957,886.36                       54,042,195.07

Note, including explanation about the reason of the change:
In the current period, according to the relevant resolutions of the previous year, the repurchase and cancellation of treasury shares



                                                                                                                                                   95
                                                                    Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


continued. The cost of canceled shares in stock was higher than the corresponding cost of equity, which offset the surplus reserve by
RMB66,957,886.36.




37. Retained profit

                                                                                                                           In RMB RMB

                          Item                                     Current period                            Last period

Adjustment on retained profit of previous period                            3,921,225,872.96                        1,863,191,218.58

Total of retained profit at beginning of year
                                                                               16,171,320.58
adjusted (+ for increase, - for decrease)

Retained profit adjusted at beginning of year                               3,937,397,193.54                        1,863,191,218.58

Plus: Net profit attributable to owners of the
                                                                              128,581,755.01                          230,131,663.19
parent

Common share dividend payable                                                 224,676,837.79                          177,546,338.10

Closing retained profit                                                     3,841,302,110.76                        1,915,776,543.67

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 RMB0.
2) Variation of accounting policies, influenced the retained profit by RMB16,171,320.58.
3) Correction of material accounting errors, influenced the retained profit by RMB0.
4) Change of consolidation range caused by merger of entities under common control, influenced the retained profit by RMB0.
5) Other adjustment influenced the retained profit by RMB0.


38. Operational revenue and costs

                                                                                                                           In RMB RMB

                                   Amount occurred in the current period                       Occurred in previous period
           Item
                                     Income                        Cost                    Income                      Cost

Main business                       1,385,429,784.95             1,055,781,224.98        1,426,207,018.36             925,306,886.60

Other businesses                       40,461,162.04               10,284,745.58            15,843,878.17              10,179,289.13

Total                               1,425,890,946.99             1,066,065,970.56        1,442,050,896.53             935,486,175.73

Whether the new revenue guidelines are implemented
□ Yes √ No


39. Taxes and surcharges

                                                                                                                           In RMB RMB

                    Item                         Amount occurred in the current period             Occurred in previous period


                                                                                                                                    96
                                                         Interim Financial Statements 2019 of China Fangda Group Co., Ltd.


City maintenance and construction tax                             3,306,190.50                              3,980,442.45

Education surtax                                                  2,197,616.65                              2,866,384.67

Property tax                                                      2,367,178.99                              2,556,126.19

Land using tax                                                      772,262.35                                808,834.13

Vehicle usage tax                                                    15,960.00                                 15,240.00

Stamp tax                                                           945,391.73                                849,673.18

Land VAT                                                         31,689,811.56                             89,995,084.20

Others                                                              186,588.29                                132,410.21

Total                                                            41,481,000.07                           101,204,195.03

Others:


40. Sales expense

                                                                                                            In RMB RMB

                    Item                Amount occurred in the current period         Occurred in previous period

Labor costs                                                      13,756,507.19                              9,512,746.08

Freight and miscellaneous charges                                 2,552,065.93                              2,569,313.15

Travel expense                                                      684,332.50                              1,011,110.84

Entertainment expense                                               979,949.90                                727,599.36

Material consumption                                                135,028.48                                252,088.61

Office costs                                                         48,247.56                                 79,998.75

Rental                                                              952,964.78                                388,001.26

Advertisement and promotion fee                                     865,854.97                                932,974.88

Sales agency fee                                                  5,943,528.83                              8,390,339.52

Others                                                            1,257,158.36                              3,195,968.79

Total                                                            27,175,638.50                             27,060,141.24




41. Management expenses

                                                                       &ensp