Interim Report 2026 of China Fangda Group Co., Ltd.
China Fangda Group Co., Ltd.
August 2026
Interim Report 2026 of China Fangda Group Co., Ltd.
Chapter 1 Important Statement, Table of Contents and Definitions
The members of the Board of Directors and the senior management guarantee that the
announcement is free from any false information, misleading statement or material
omission and are jointly and severally liable for the information's truthfulness, accuracy
and integrity.
Mr. Xiong Jianming, the Company's principal officer; Mr. Lin Kebin, the officer in
charge of accounting affairs; and Ms. Wang Huan, head of the accounting department
(chief accounting officer), declare that they guarantee the truthfulness, accuracy, and
completeness of the financial statements included in this interim report.
All the Directors have attended the meeting of the board meeting at which this report
was examined.
This semi-annual report contains forward-looking statements such as future plans,
which do not constitute a substantial commitment by the Company to investors. Investors
and related parties should maintain sufficient risk awareness and understand the
differences between plans, forecasts, and commitments.
The Company has detailed the potential risks the company may face in this report.
Please refer to the section X. Risks and Countermeasures Faced by the Company in Chapter
The Company will distribute no cash dividends or bonus shares and has no reserve
capitalization plan.
Interim Report 2026 of China Fangda Group Co., Ltd.
Table of Contents
XI. Formulation and Implementation of the Market Capitalization Management System and
I. Commitments that have been fulfilled and not fulfilled by actual controller, shareholders, related
II. Non-operating capital use by the controlling shareholder or related parties in the reporting term . 45
V. Statement of the Board on the “non-standard auditors' report” issued by the CPA on the current
Interim Report 2026 of China Fangda Group Co., Ltd.
XIII. Record of Research Visits, Communications, and Interviews During the Reporting Period ........ 54
Interim Report 2026 of China Fangda Group Co., Ltd.
Reference
Interim Report 2026 of China Fangda Group Co., Ltd.
Definitions
Terms Refers to Description
Fangda Group, company, the Company Refers to China Fangda Group Co., Ltd.
Articles of Association Refers to Articles of Association of China Fangda Group Co., Ltd.
the General Meeting of Shareholders of China Fangda
Meeting of shareholders Refers to
Group Co., Ltd.
Board of Directors Refers to Board of Directors of China Fangda Group Co., Ltd.
Supervisory Committee of China Fangda Group Co.,
Supervisory Committee Refers to
Ltd.
Banglin Technology Refers to Shenzhen Banglin Technologies Development Co., Ltd.
Shengjiu Co. Refers to Shengjiu Investment Ltd.
Shenzhen Fangda Construction Technology Group Co.,
Fangda Construction Technology Refers to
Ltd.
Fangda Zhiyuan Refers to Fangda Zhichuang Technology Co., Ltd.
Fangda Jiangxi New Material Refers to Fangda New Materials (Jiangxi) Co., Ltd.
Fangda New Resource Refers to Shenzhen Fangda New Energy Co., Ltd.
Fangda Property Refers to Shenzhen Fangda Property Development Co., Ltd.
Fangda Chengdu Technology Refers to Chengdu Fangda Construction Technology Co., Ltd.
Fangda Dongguan New Material Refers to Dongguan Fangda New Material Co., Ltd.
Kechuangyuan Software Refers to Shenzhen Qianhai Kechuangyuan Software Co., Ltd.
Fangda Property Refers to Shenzhen Fangda Property Management Co., Ltd.
Fangda Jiangxi Property Refers to Fangda (Jiangxi) Property Development Co., Ltd.
Fangda Investment Holding Refers to Shenzhen Fangda Investment Holding Co., Ltd.
Fangda Yunzhu Refers to Shenzhen Fangda Yunzhu Technology Co., Ltd.
Fangda Zhijian Refers to Shanghai Fangda Zhijian Technology Co., Ltd
Jiangxi Fangda Intelligent Manufacturing Technology
Fangda Intelligent Manufacturing Refers to
Co., Ltd.
SZSE Refers to Shenzhen Stock Exchange
Interim Report 2026 of China Fangda Group Co., Ltd.
Chapter II About the Company and Financial Highlights
I. Company Profile
Stock ID Fangda Group, Fangda B Stock code 000055, 200055
Modified stock ID (if any) None
Stock Exchange Shenzhen Stock Exchange
Chinese name China Fangda Group Co., Ltd.
English name (if any) Fangda Group
English name (if any) CHINA FANGDA GROUP CO.,LTD.
English abbreviation (if any) CFGC
Legal representative Xiong Jianming
II. Contacts and liaisons
Secretary of the Board Representative of Stock Affairs
Name Ye Zhiqing Guo Lingchen
Address No.2, Longzhu 4th Road, Nanshan No.2, Longzhu 4th Road, Nanshan
District, Shenzhen District, Shenzhen
Telephone 86(755) 26788571 ext. 6622 86(755) 26788571 ext. 6622
Fax 86(755)26788353 86(755)26788353
Email zqb@fangda.com zqb@fangda.com
III. Other Information
Changes to the Company's registration address, office address, post code, website or email during the report period
□ Applicable ? Inapplicable
Company's registration address, office address, post code, website or email have not changed during the report period. See Annual
Report 2025 for details.
Changes to the information disclosure and inquiring place
□ Applicable ? Inapplicable
The names and websites of the securities exchange websites and media where the company discloses its semi-annual report, as
well as the location of the company's semi-annual report, remain unchanged during the reporting period. Please refer to the 2025
annual report for specific details.
Whether other relevant information has changed during the reporting period
Interim Report 2026 of China Fangda Group Co., Ltd.
□ Applicable ? Inapplicable
IV. Financial Highlight
Whether the Company needs to make retroactive adjustment or restatement of financial data of previous years
□ Yes ? No
This report period Same period last year Year-on-year change (%)
Turnover (yuan) 1,551,057,757.28 1,598,286,450.04 -2.95%
Net profit attributable to
shareholders of the listed 54,501,089.34 17,289,598.23 215.22%
company (yuan)
Net profit attributable to the
shareholders of the listed
company and after deducting 49,718,847.69 14,383,496.33 245.67%
of non-recurring gain/loss
(yuan)
Net cash flow generated by
business operation (yuan)
Basic earnings per share
(yuan/share)
Diluted Earnings per share
(yuan/share)
Weighted average net
income/asset ratio
End of the report period End of last year Year-on-year change
Total asset (yuan) 12,270,886,027.75 12,575,400,067.75 -2.42%
Net profit attributable to the
shareholders of the listed 5,547,312,310.75 5,559,285,130.74 -0.22%
company (RMB)
V. Differences in accounting data under domestic and foreign accounting standards
Chinese account standards
□ Applicable ? Inapplicable
There is no difference in net profits and assets in financial statements disclosed according to the international and Chinese account
standards during the report period.
Chinese account standards
□ Applicable ? Inapplicable
There is no difference in net profits and assets in financial statements disclosed according to the international and Chinese account
standards during the report period.
Interim Report 2026 of China Fangda Group Co., Ltd.
VI. Accidental gain/loss item and amount
? Applicable □ Inapplicable
In RMB
Item Amount Notes
Non-current asset disposal gain/loss
(including the write-off part for which 149,689.17
assets impairment provision is made)
Government grants recognized in the
current period's profit or loss (except for
government grants that are closely
related to the Company's normal business
operations, in line with national policies
and in accordance with defined criteria,
and have a continuous impact on the
Company's profit or loss)
Gains and losses from changes in the fair
value of financial assets and liabilities
held by non-financial corporations and
gains and losses from the disposal of
financial assets and liabilities, except for
effective hedging operations related to
the Company's normal business
operations
Gain/loss from change of fair value of
investment property measured at fair 2,196,417.29
value in follow-up measurement
Other non-business income and
-40,931.38
expenditures other than the above
Less: Influenced amount of income tax 877,065.54
Impact on minority interests (after
tax)
Total 4,782,241.65
Other gain/loss items satisfying the definition of non-recurring gain/loss account:
□ Applicable ? Inapplicable
The Company has no other gain/loss items satisfying the definition of non-recurring gain/loss account
Circumstance that should be defined as recurrent profit and loss to Explanation Announcement of Information Disclosure No. 1 -
Non-recurring gain/loss
□ Applicable ? Inapplicable
The Company has no circumstance that should be defined as recurrent profit and loss to Explanation Announcement of
Information Disclosure No. 1 - Non-recurring gain/loss
Interim Report 2026 of China Fangda Group Co., Ltd.
Chapter III Management Discussion and Analysis
I. Major businesses of the Company during the report period
China Fangda Group Co., Ltd. was founded in Shenzhen in 1991, with businesses spanning intelligent platform screen door
systems for rail transit, high-end smart curtain wall systems and materials, new energy, and commercial services. In terms of core
business competitiveness, the Company's intelligent platform screen door systems for rail transit and smart curtain wall systems
are both industry-leading. The Company has under its umbrella 1 "Manufacturing Single Champion Product," 1 "National Quality
Leader Enterprise," 2 "National Intellectual Property Advantage Enterprises," 7 National High-tech Enterprises, 4 "Specialized,
Refined, Distinctive, and Innovative" (SRDI) enterprises, and 2 provincial-level Engineering Technology Research Centers.
During the reporting period, in the face of profound industry adjustments, the Company remained committed to innovation-
driven development and vigorously promoted the deep integration of next-generation information technologies—such as artificial
intelligence (AI) and big data—with its core business. While consolidating its domestic market leadership, the Company expanded
its presence in overseas markets and systematically advanced its internationalization strategy, achieving leapfrog growth in orders
from two key regional markets: Australia and the Middle East. In addition, through the establishment of a full-process risk
management system, the Company closely monitored project settlements, intensified collection efforts, continuously optimized its
accounts receivable structure, and strictly enforced project entry criteria, thereby safeguarding high-quality and sustainable
development. During the reporting period, the Company recorded operating revenue of RMB 1,551,057,800, down 2.95% year-on-
year; net profit attributable to owners of the parent company reached RMB 54,501,100, up 215.22% year-on-year. Total accounts
receivable decreased by 6.96% from the beginning of the period. Net cash flow from operating activities amounted to RMB
orders totaled RMB 1,653,099,100, up 91.71% year-on-year, of which newly signed overseas orders accounted for 56.03%. Both
order volume and structure improved, demonstrating strong growth resilience. As of the end of the reporting period, the
Company's order backlog stood at RMB 6,460,882,300, including overseas order backlog of RMB 3,113,749,900, representing
overseas order backlog rising steadily, laying a solid foundation for sustained future performance growth.
(I) Intelligent Platform Screen Door Systems for Rail Transit
The Company has continued to deepen its expertise in the rail transit platform screen door sector, achieving remarkable
results in both technological innovation and market expansion. Notably, significant breakthroughs have been made in both the
technology and application scenarios of high-speed railway (HSR) platform screen doors. As a global first, the Company's HSR
platform screen doors utilize AI multi-modal fusion technology and have obtained CRCC certification. Compatible with multiple
train models, the system resolves the challenge of variable door positions caused by mixed-model operations. It enables automatic
and precise alignment through AI visual recognition without reliance on the HSR signaling system.
During the reporting period, the Company successively won bids for projects to install additional platform screen doors at
Platforms 11 and 12 of Shenzhen North Station and Platforms 1–4 of Dongguan Humen High-Speed Railway Station. Following
the Shenzhen Futian High-Speed Railway Station project in 2025, this marks another instance where the Company has provided
intelligent full-sliding platform screen door solutions for core HSR hubs.
Shenzhen North Station is a super-large comprehensive railway hub in the Guangdong-Hong Kong-Macao Greater Bay Area,
featuring 11 platforms and 20 tracks. It handles over 1,500 train arrivals and departures daily, with passenger throughput reaching
Speed Railway within Dongguan, Dongguan Humen High-Speed Railway Station handled nearly 20 million passengers in 2025.
Both stations are among the busiest HSR hubs in China. The renovation projects involve the demolition of existing facilities and
Interim Report 2026 of China Fangda Group Co., Ltd.
the construction of new half-height full-sliding platform screen doors, establishing a robust safety barrier for these heavily loaded
hubs.
From the full-height platform screen doors at Futian Station to the half-height ones at Shenzhen North and Dongguan Humen
stations, Fangda's HSR platform screen door products now offer comprehensive coverage of both full-height and half-height
configurations. They represent the first full-sliding platform screen doors in China installed directly against the platform edge at an
HSR station. Furthermore, Fangda has become the first supplier to install full-sliding platform screen doors at an HSR station with
annual passenger traffic exceeding 100 million.
The successful adoption of Fangda's HSR platform screen door systems at the aforementioned stations signifies the
Company's official transition from product validation to large-scale deployment. Marking a true leap from the "metro era" into the
"high-speed rail era," the Company has opened a brand-new chapter in the emerging market of HSR platform screen doors.
Advancing Global Presence and Standard Leadership: Rail Transit Platform Screen Door Business Demonstrates
Growing International Influence
As a pioneer and leader in intelligent rail transit platform screen doors, the Company has steadfastly pursued its globalization
strategy. Its products and services now span multiple countries and regions, including Singapore, Malaysia, Hong Kong (China),
Taipei (China), Thailand, India, Greece, Colombia, and the Philippines, earning widespread international recognition for high-
quality and reliable system solutions. During the reporting period, all sections of India's NCRTC project commenced through-
service operations, with Indian Prime Minister Narendra Modi presiding over the inauguration ceremony. As India's first Regional
Rapid Transit System (RRTS), the line adopts a mixed-operation mode integrating high-speed rail and metro services. The
platform screen door systems supplied by the Company precisely accommodate complex operating conditions—including non-
stop high-speed train pass-through, bidirectional traffic, and multi-model train stops—thereby supporting the development of a
seamless, efficient, modern, and sustainable public transport network in India's National Capital Region. This achievement further
underscores the Company's deepening engagement in Belt and Road Initiative (BRI) projects. Meanwhile, the platform screen
door system at Platform 4 of Hong Kong Airport Express Station was commissioned to support capacity expansion at this
international aviation hub, serving as critical transport infrastructure for Hong Kong International Airport. From exporting
products to exporting technology and brand value, the Company is completing a global transition from equipment export to
standard export.
In domestic project delivery, the Company ensured the successful launch of the initial section of Wuhan Metro Line 12,
which operates with GoA4 fully automatic operation—the highest automation level. The Company's platform screen door system
achieves Safety Integrity Level (SIL) 2 and enables millisecond-level real-time data interaction between trains and doors. Once the
entire loop line is operational, it will become the world's second-longest and Asia's longest circular metro line. Concurrently,
Phase II (Northern Extension) of Shenzhen Metro Line 13 also entered service; as another GoA4 fully automatic line, its full-line
commissioning across 11 stations was completed within just 15 days, passing final acceptance inspection on the first attempt.
During the reporting period, the Company received multiple authoritative customer accolades, including the sole "2025 Annual
Safety Gold Award" from MTR Corporation (Hong Kong); "2025 Outstanding Supplier" and "2025 Outstanding Contribution Unit
for Line Openings" from Shenzhen Metro Group; "2025 Outstanding Partner" from Wuhan Metro Group; and "Advanced
Supplier" for Dongguan Rail Transit Line 1. These honors reflect the Company's continuously strengthening brand influence.
In terms of standard leadership, the Company served as lead drafter for both the first national standard in the sector, Urban
Rail Transit Platform Screen Door Systems (GB/T 46749-2025, effective May 1, 2026), and the first industry standard, Platform
Screen Doors for Urban Rail Transit (CJ/T 236-2022). It also participated in drafting numerous other national, industry, and
enterprise standards, promoting standardized and regulated industrial development while providing Chinese technical standards to
support BRI projects abroad. The Company's management systems continue to operate effectively, having successfully passed
annual audits for IRIS (International Railway Industry Standard) as well as ISO 14001, ISO 45001, and ISO 27001 certifications.
Continued validity of these certificates provides robust institutional assurance for the Company's participation in global
Interim Report 2026 of China Fangda Group Co., Ltd.
competition. From exporting products to exporting standards, the Company is reshaping the global landscape of rail transit
equipment with Chinese solutions.
During the reporting period, revenue from the Company's intelligent rail transit platform screen door equipment and systems
segment reached RMB 255,530,900. At period-end, order backlog for this segment stood at RMB 2,089,055,100, equivalent to
Doors
The Company has continued to deepen the integration of artificial intelligence (AI) with its core rail transit platform screen
door business, achieving multiple milestone results in production processes, equipment management, intelligent operations and
maintenance (O&M), and visual recognition, significantly enhancing its technological capabilities and product competitiveness.
In intelligent manufacturing process innovation, the Company built the industry's first robotic assembly intelligent production
line. Centered on the deep integration of robotic clusters and AI algorithms, the line achieves fully automated closed-loop
operations—from material loading and assembly to stacking. Through intelligent trajectory planning, dual-robot collaborative
high-precision assembly, and AI-based zone interlock monitoring, the line attains millimeter-level operational precision and
autonomous collision avoidance. An integrated intelligent stacking compensation system enables precise unified control of
unloading, padding, and stacking. With autonomous perception, decision-making, and execution—requiring no human
intervention throughout the process—the line has significantly improved production yield and operational safety, marking the
transition of core platform screen door component manufacturing into a new intelligent era of "machines replacing humans, data
driving operations."
In intelligent O&M system development, the Company's Condition Monitoring intelligent O&M system has been deployed
on Singapore's J152 project (Jurong Region Line) and has entered the Factory Acceptance Test (FAT) confirmation phase.
Integrating real-time line-wide equipment monitoring, intelligent diagnostics, and predictive maintenance, the system provides
owners with a comprehensive smart O&M solution.
In AI visual recognition technology, the train AI visual recognition system—optimized for high-speed rail (HSR) scenarios—
has been deployed at Shenzhen Futian High-Speed Railway Station. By precisely identifying train models, stopping positions, and
door status, the system achieves accurate positioning and rapid response control. In the absence of an interface between the
signaling system and the HSR platform screen doors, it enables fully automatic operation of the doors, providing robust support
for capacity enhancement on the Guangzhou-Shenzhen-Hong Kong High-Speed Railway. The train AI visual recognition system
has also been installed as a full prototype on Singapore's Bukit Panjang Light Rail Transit (LRT). Independent of the signaling
system, the system autonomously identifies the entire process of train entry and exit through visual recognition and can replace the
signaling system to control platform screen door operations, offering an ideal solution for legacy line retrofits lacking signaling
interfaces.
In system platform innovation, the Company has deeply integrated AI with digital twin technology to build a next-generation
intelligent platform screen door ecosystem. Leveraging LiDAR point cloud modeling and multi-sensor fusion, the platform
achieves millimeter-level precise alignment and coordinated control between platform screen doors and train doors. It is adaptable
to trains of different formations, significantly enhancing compatibility for mixed-model operations and improving transport
capacity and efficiency. The Company continues to lead the evolution of platform screen doors from conventional
electromechanical equipment toward highly intelligent core rail transit systems.
From intelligent O&M to AI visual recognition, from digital twin coordination to signal-free autonomous control, AI is
comprehensively reshaping the technological boundaries of rail transit platform screen doors. The Company is driving the
evolution of platform screen door systems from "reliable execution" to "autonomous perception," and from "passive response" to
"proactive prevention," continuing to lead the industry's transformation from traditional electromechanical equipment to highly
intelligent core systems—delivering a compelling answer sheet for China's intelligent manufacturing leadership in the global wave
of rail transit digitalization.
Interim Report 2026 of China Fangda Group Co., Ltd.
The Company is accelerating its transformation from an equipment manufacturer of rail transit platform screen door systems
into a full-value-chain service provider integrating "equipment manufacturing + comprehensive technical services." It has
established a complete industrial closed loop spanning "R&D—manufacturing—installation—maintenance," achieving a
comprehensive upgrade from single product export to a dual-output business model of "products + services."
In terms of industrial layout, the Company has aligned closely with domestic and overseas market demand, continuously
enhancing its global O&M service network. Domestically, the Wuhan production base has been successfully commissioned,
further strengthening regional production capacity. Overseas, leveraging Hong Kong's unique geographic advantages, the
Company has established a Hong Kong subsidiary and built a Global Platform Screen Door Maintenance Center, integrating
maintenance technology, a global spare parts supply chain, and overseas after-sales team resources to create a unified global O&M
service hub for the Group. The center's services cover local line maintenance in Hong Kong, after-sales support for Southeast
Asian projects, as well as annual maintenance for existing lines and O&M for legacy line retrofits, continuously expanding
incremental maintenance business opportunities and further refining the integrated service model of "equipment sales + long-term
O&M."
During the reporting period, revenue from the Company's comprehensive technical services for rail transit platform screen
doors reached RMB 43,426,400, up 29.80% year-on-year. Newly signed orders for comprehensive technical services increased by
covering over 30 cities and the remote precision diagnostic capabilities of its CBMS intelligent O&M system, the Company is
pursuing an innovative path of "turning technology into products, products into services, and services into value," continuously
consolidating its leadership in the global rail transit platform screen door sector.
(II) Intelligent Curtain Wall Systems and New Materials
Adhering to a high-end premium strategy, the Company remains firmly anchored in the domestic and overseas high-end
curtain wall markets. By cultivating quality clients and key regions while securing major landmark projects, it provides customers
with full-process, one-stop comprehensive curtain wall solutions. In overseas markets, the Company pursues a dual-track
development strategy of "deepening engagement in mature markets and expanding into emerging markets," continuously
enhancing its project acquisition capabilities and delivery performance.
Australia remains one of the Company's key overseas advantage markets. During the reporting period, the Company
successfully won bids for multiple high-quality projects, including the Canberra Theatre, Melbourne CDC Data Centre, Iglu
Kensington Student Accommodation in Sydney, and Palmera Residences on the Gold Coast, significantly improving project
responsiveness and delivery quality.
In the Middle East, the Company deepened its presence in the core UAE market, achieving breakthroughs in high-end market
access. During the reporting period, it secured multiple curtain wall projects, including Enara and One River Point in Dubai. In
Saudi Arabia, leveraging strong partnership resources, the Company obtained project bidding qualifications, opening a critical
pathway for deeper market penetration.
In Southeast Asia and other high-potential markets, the Company continued to strengthen cooperation with reputable local
enterprises. During the reporting period, it won the bid for Dhaka Tower in Dhaka, Bangladesh. Upon completion, this project will
become a local landmark, effectively enriching the Company's track record of overseas super-high-rise curtain wall projects and
laying a solid foundation for scaled expansion across Southeast Asia. Meanwhile, focusing on Indonesia, Vietnam, and other
countries, the Company steadily advanced product certification and market compliance efforts. It completed building materials
market access certification for Mongolia and accelerated its layout in Hong Kong, Macao, and Taiwan markets, continuously
winning and implementing regional engineering projects.
In the domestic market, the Company successively secured bids for high-quality benchmark projects, including Shanghai
Yachuang Automotive Electronics Headquarters Base, CIQTEK Shanghai Zhangjiang R&D Center, Guangzhou Bee Assistant
Interim Report 2026 of China Fangda Group Co., Ltd.
Future Technology Building, Guangzhou Quwan Technology Global Headquarters, Beihaojia Chengdu Beichen S1 Project, and
Suzhou Inovance New Energy Vehicle Components Production Base. Over 80% of newly signed domestic projects are self-built
corporate facilities, featuring clients with strong creditworthiness and favorable payment terms, ensuring an overall high-quality
and risk-controllable project portfolio.
During the reporting period, new orders for the Company's smart curtain wall and new materials segment totaled RMB
year-on-year, marking particularly significant progress in overseas market development. During the reporting period, revenue from
the smart curtain wall and new materials segment amounted to RMB 1,199,918,500, up 1.27% year-on-year. At period-end, order
backlog stood at RMB 4,371,827,200, equivalent to 3.64 times the segment's H1 revenue. As previously secured high-quality
overseas orders were progressively converted into revenue, the share of overseas revenue in the curtain wall systems and new
materials segment rose from 5.64% in FY2025 to 15.46% in the current reporting period. This reflects a continuing optimization of
the revenue mix and steady improvements in overall operational quality and profitability.
Materials
The Company has continued to deepen the integration of artificial intelligence (AI) with its curtain wall and new materials
business, embedding intelligent technologies across core areas including green energy efficiency, prefabricated construction, new
materials application, and complex curtain wall systems, thereby building end-to-end breakthrough capabilities spanning
technology R&D, product iteration, and engineering application.
① AI Accelerates Quality and Efficiency Enhancement Across the Full Value Chain
The Company has established an AI Research and Application Promotion Team to leverage AI technology for enhanced
management efficiency. The team focuses on researching and applying AI-assisted tools, methodologies, and business scenarios
across the entire value chain and various operational processes, covering diverse applications such as an intelligent collaborative
assistant for the full curtain wall bidding process, a BIM-based AI curtain wall cutting optimization system, an AI collaborative
management platform for curtain wall engineering quality, and an AI-assisted project risk management tool. Leveraging AI, the
Company continues to optimize its nine major information management systems. Through in-depth collaboration with Huawei
Cloud, it has comprehensively upgraded its factory MES, enabling seamless information exchange and resource sharing from daily
operations to the full lifecycle of curtain wall projects. To support overseas business expansion, the Company conducts
collaborative design on platforms including ACC, Aconex, and Simpel, effectively streamlining cross-disciplinary coordination
and collaboration for overseas projects.
In engineering practice, the Company deeply integrates full-process BIM application, 3D scanning, and reverse modeling,
enhancing the practical application of digital twin technology. In production, the MES system enables data-driven planning and
real-time monitoring based on aggregated data, bridging data flow across departments and functional modules. The system
automatically performs summary analysis and adjusts correlated data, achieving scientific linkage and real-time follow-up between
upstream and downstream schedules. New features added to the MES include quality statistical reports, pre-coating parameter
monitoring, and customized quality inspection for orders, enabling process hold control for non-conforming products. The
Company independently developed VBA plug-ins to synchronize form data and add early-warning functions, effectively reducing
manual operation errors.
For complex and challenging irregular-shaped curtain wall projects, the Company combines 3D scanning equipment with AI-
assisted technology to implement digital incoming material inspection and full-process visual quality control at construction sites,
comprehensively improving refined quality control for irregular curtain walls. Concurrently, the Company is advancing the R&D
and application of an AI quality collaborative management platform for curtain wall engineering. Relying on this digital platform,
it establishes a full-process closed-loop quality control chain, accumulating engineering quality data and professional expertise to
enable digital reuse of experience.
② Accelerated Launch of New Products with Tangible Results in Overseas Customization
Interim Report 2026 of China Fangda Group Co., Ltd.
The Company continues to strengthen technological breakthroughs and product innovation in key areas including
prefabricated construction, green energy efficiency, and high-end curtain wall systems. To address the differentiated needs of
Middle Eastern and Australian markets, the Company has developed a range of products including Middle East-standard framed
curtain wall systems, Middle East-standard unitized curtain wall systems, mullion-free glass balustrade systems, sand-proof
louvers, triple-blade louver systems, and AS/NZS 4284-compliant three-track sliding doors for Australia. Some of these products
have already passed performance testing and certification.
In new materials development and application, the Company focuses on R&D of high-value-added artistic aluminum
panels—including expanded metal double-curved panels, wave-patterned panels, and ultra-large modular prefabricated panels—
and has customized dark bronze-brushed and ceramic-like high-gloss aluminum panels to precisely match regional architectural
aesthetics and quality standards through differentiated surface finishes. For the Middle East market specifically, the Company has
developed snap-on perforated kits, profile-based and wooden handrails with steel substructures, stone-look aluminum panels that
emulate local stonework, as well as iridescent aluminum panels featuring controlled color variation and excellent coating
uniformity. The Company has also completed development of multiple innovative products, including integrated bathroom
vanities (integrating stone honeycomb composite and one-piece corner forming technologies), cast aluminum veneer, antique
bronze series panels, linear-textured stone-look panels, anodized-look panels, iridescent panels, and glazed tile-finish aluminum
panels.
Green and eco-friendly materials such as Building Integrated Photovoltaics (BIPV) are increasingly adopted in smart curtain
wall applications. Projects including Shenzhen Qianhai Financial Holdings Tower and Guangzhou Kugou Music Building have
been successfully delivered, effectively reducing building energy consumption and carbon emissions. The design of the BIPV
power-generating unitized curtain wall system for Australia has been completed, with sample fabrication and fire performance
testing now underway. Concurrently, the Company is advancing upgrades to its environmental protection facilities: newly installed
enclosed grinding booths enable targeted dust collection during aluminum panel grinding; solvent distillation recovery units now
reclaim over 100 liters of spray diluent daily; and a new temperature- and humidity-controlled powder warehouse ensures raw
material storage quality—continuously reinforcing the foundation for green manufacturing.
③ Industry-Academia-Research Collaborative Innovation Ecosystem Continuously Strengthened
The Company remains steadfast in advancing deep integration of industry, academia, and research. It has signed a long-term
strategic cooperation agreement with the College of Mechanics and Civil Engineering at Jinan University, collaborating on
multiple fronts including big data for building curtain walls, intelligentization, complex steel structure systems, and new materials
performance research. The Company has been approved to establish a "Shenzhen Postdoctoral Innovation Practice Base," further
bridging the "university–enterprise–industry" cycle. This provides a powerful engine for attracting and cultivating high-end
research talent and driving the curtain wall industry's upgrade toward intelligentization and green development. The Company's
independently developed "Vertically Offset Curtain Wall Finishing System" and "Ultra-Large High-Vanadium Cable Curtain Wall
Technology" were selected for the "Shenzhen Enterprise Innovation (China) Records." Its "Ultra-High Suspended Curtain Wall
Construction Technology," which enables "building curtain walls in mid-air," was named to the Top Ten Innovative Applications
List in the curtain wall industry. This technology has been applied to the Qianhai Financial Holdings Tower—the tallest building
under construction in Shenzhen Qianhai at 245 meters—demonstrating the Company's top-tier intelligent construction capabilities
in extreme working conditions and the installation of ultra-large, irregular-shaped curtain walls. The Company was awarded the
title of "Advanced Organization" in academic exchange at the 2026 Shenzhen Keyuan Award for Building Doors, Windows, and
Curtain Walls. Multiple curtain wall designers received "Outstanding Paper Awards" for their academic achievements, further
enhancing the Company's industry influence.
The Company prioritizes risk control and cash flow security in its operations, continuously strengthening accounts receivable
management through systematic and refined collection control mechanisms. At the end of the reporting period, total accounts
receivable decreased by 6.96% from the beginning of the period. Net cash flow from operating activities reached RMB 7.6672
Interim Report 2026 of China Fangda Group Co., Ltd.
million, an increase of RMB 274 million year-on-year, turning positive from negative. This significant improvement in cash flow
has further enhanced the Company's operational quality and financial resilience. This turnaround is a phased achievement resulting
from the Company's commitment to its high-quality development strategy and intensified efforts in cash collection. With the
gradual conversion of overseas high-gross-margin orders, the Company's profitability is expected to continue improving. Coupled
with the normalized operation of collection control mechanisms, the Company's self-sustaining cash generation capacity is steadily
increasing, and its cash flow position is poised for continued optimization.
On the business origination front, the Company strictly controls project access, focusing on high-quality clients and orders
with strong payment assurance to effectively mitigate incremental operational risks. For existing receivables, the Company
implements categorized strategies and targeted collection efforts, leveraging multiple measures to intensify recovery. The
Company has established a full-process collection control system covering pre-event, in-process, and post-event stages. It
coordinates key matters through regular special meetings, dynamically tracks execution, and strengthens response mechanisms at
critical junctures to ensure timely issue resolution. Meanwhile, the Company continues to strengthen progress billing management
for ongoing projects to ensure timely payments at contractual milestones. For settled projects, it regularly reviews and resolves
bottlenecks and difficulties in settlement, accelerates approval processes, and effectively drives the collection of settlement
payments. The Company will continue to optimize management processes and improve capital recovery efficiency, providing
solid financial support for sustainable operations.
(3) New energy industry
Seizing the opportunities presented by the global energy transition, the Company has positioned new energy as a key strategic
segment driving green growth and sustainable development. As one of the earliest enterprises in China engaged in the design,
manufacturing, and integration of Building Integrated Photovoltaics (BIPV) systems, the Company has established integrated
industrial capabilities spanning R&D, product manufacturing, system integration, and O&M services, forging differentiated
competitive advantages in the cross-sector integration of architecture and photovoltaics.
During the reporting period, the Company continued to deepen its focus on the core BIPV sector. It provided a PV power
generation system solution for the Qianhai Financial Holdings Tower in Shenzhen, which is projected to generate an average of
effect and technological leadership in high-end BIPV applications.
The Company's self-owned rooftop distributed PV stations at Pingxiang (Jiangxi), Jiangling Motors Parking Lot (Nanchang,
Jiangxi), Songshan Lake Base (Dongguan), Ganzhou Production Base, and Shanghai Production Base continued to operate stably.
During the reporting period, these stations generated a cumulative 10.0984 million kWh of electricity and reduced CO₂ emissions
by 10,068 tonnes. All PV projects are operating well, continuously contributing stable profits and cash flows. They have become a
vital component of the Company's green asset portfolio, demonstrating the sustainable development potential of the new energy
business driven by both economic and environmental benefits.
(IV) Commercial Management and Services
The Company's commercial management and property services focus on two core cities, Shenzhen and Nanchang. Driven by
the dual engines of "precise positioning + digital empowerment," the Company continuously enhances asset operational efficiency
and service quality, unlocking the value of existing assets.
In the Shenzhen market, leveraging the locational advantages and innovation factor agglomeration effects of the Guangdong-
Hong Kong-Macao Greater Bay Area, the Company continues to deepen leasing innovation and operational upgrades. At the end
of the reporting period, the sell-through rate for the Shenzhen Fangda Town project reached 98.84%, with an occupancy rate of
pressure and cyclical demand adjustments in the Shenzhen office market, the Company's projects maintained steady operations.
Located in the core of the Honggutan CBD, Nanchang Fangda Center has benefited from the provincial capital's functional
upgrades and rising regional value. The project maintains high market attention and strong rental support. At the end of the
reporting period, its sell-through rate reached 47.48%, with an occupancy rate of 89.29% for self-held properties.
Interim Report 2026 of China Fangda Group Co., Ltd.
The Company continues to advance its "AI + Property Services" digital ecosystem, comprehensively promoting the
development of a property services management middle platform and iterating its AI-powered customer service infrastructure to
drive the transformation from isolated smart applications to integrated intelligent operations. On the customer service front, the
Company upgraded its WeCom-based property manager capabilities, enabling one-click access to fee inquiries, payments, and
work order tracking, significantly improving service responsiveness and customer experience. Regarding energy-saving retrofits,
the Company organized technical discussions to optimize the central air conditioning control system for the Fangda Town project
and refined the AI-based intelligent control implementation plan, laying the technical groundwork for retrofit execution in the
second half of the year.
Going forward, the Company will continue to leverage digital tools to empower precise operational decision-making and
deepen the integration of commercial operations and property services. Amid regional structural optimization and consumption
upgrades, these efforts will drive the steady appreciation of core asset values.
The special planning work for the Company's Henggang Dakang Urban Renewal Project in Shenzhen is currently underway.
Equity
Total land
Parcel or considerati
Land Land area Building Obtaining Interests price (ten
project Purpose on (ten
location (m2) area (m2) method percentage thousand
name thousand
yuan)
yuan)
None
Total building area (10,000 Remaining building area
Project/region name Floor area (10,000 m2)
m2) (10,000 m2)
None
Accu
Estim
mulat
Total ated
Planni Area ed
Devel area total
Intere ng compl total
Land Starti opme Comp Land compl invest
City/r Projec sts constr eted invest
Item locati ng nt letion area eted ment
egion t form perce uction in this ment
on time progre rate (m2) in this (in
ntage area phase (in
ss phase RMB
(m2) (m2) RMB
(m2) 10,00
Shenz
Office
hen No.2
Fangd comm May
Nansh Longz 100.0 100.0 35,39 212,4 217,7 258,5 283,6
a ercial 1, 100% 0
an hu 4th 0% 0% 7.60 00.00 63.69 00 00
Town compl 2014
Distri Road
ex
ct
No.15
Hong
Ganji
gutan Office
Fangd ang
New comm May
a North 100.0 100.0 16,60 66,43 65,37 67,00 66,99
Distri ercial 1, 100% 0
Cente Aven 0% 0% 8.55 2.61 6.94 0 2.35
ct, compl 2018
r ue
Nanch ex
Fangd
ang
a
Cente
Interim Report 2026 of China Fangda Group Co., Ltd.
r
Amou
nt of Settle
Cumul Pre- pre- Settle ment
Cumul
ative sale sale ment amoun
Interes ative
Land Buildi Sellabl pre- (sales) (sales) area in t in
City/re Project ts settlem
Item locatio ng area e area sale area in in the the this
gion form percen ent
n (m2) (m2) (sales) this current current period
tage area
area period period period (RMB
(m2)
(m2) (m2) (RMB (m2) 10,000
)
Shenz
Office
hen No.2
Fangd comm
Nansh Longz 100.00 217,76 93,086 92,002 92,002
a ercial 0 0 0 0
an hu 4th % 3.69 .25 .95 .95
Town compl
Distric Road
ex
t
No.15
Hongg
Ganjia
utan Office
ng
New Fangd comm
North 100.00 65,376 25,996 12,343 12,343
Distric a ercial 170.11 108.7 170.11 108.7
Avenu % .94 .84 .36 .36
t, Center compl
e
Nanch ex
Fangd
ang
a
Center
Interests Leasable area Cumulative Average lease
Item Land location Project form
percentage (m2) leased area (m2) ratio
Shenzhen Commercial
Shenzhen
Nanshan and office 100.00% 92,470.58 52,564.72 56.84%
Fangda Town
District building
Shenzhen
Shenzhen
Fangda
Nanshan Office building 100.00% 20,464.75 16,666.07 81.44%
Technology
District
Building
Jiangxi
Nanchang Nanchang,
Plant and office
Science and Jiangxi 100.00% 85,472.88 54,291.10 63.52%
building
Technology Province
Park
Jiangxi Nanchang, Commercial
Nanchang Jiangxi and office 100.00% 38,165.36 34,076.99 89.29%
Fangda Center Province building
□ Applicable ? Inapplicable
Ending Financing cost Maturity Structure (RMB10,000)
Financing
financing range / average
source Within 1 year 1-2 years 2-3 years Over 3 years
balance (in financing cost
Interim Report 2026 of China Fangda Group Co., Ltd.
RMB10,000)
Annual interest
Bank loan 106,000 rate: 2.1%- 4,000.00 4,500.00 4,500.00 93,000.00
Annual interest
Total 106,000 rate: 2.1%- 4,000.00 4,500.00 4,500.00 93,000.00
The Commercial Management and Services segment will prioritize the sell-through of existing assets and the enhancement of
operational capabilities. The Company will accelerate the sell-through of remaining units at the Shenzhen Fangda City project and
adopt multiple measures to increase occupancy rates for self-held properties, thereby consolidating its leading position in the
regional market. Resources will be concentrated on advancing sales at the Nanchang Fangda Center project to expedite capital
recovery and improve overall project profitability.
Operationally, the Company will deepen its digital and intelligent transformation, driving the evolution of property services
from traditional management to smart operations. It will actively explore the in-depth application of AI, big data, and other
technologies in scenarios such as customer service, energy consumption management, and facility O&M to continuously enhance
service efficiency and customer experience. Meanwhile, aligned with urban renewal policy directions and leveraging internal
resources, the Company will steadily advance the application and approval processes for the Shenzhen Henggang Dakang Urban
Renewal Project, securing high-quality assets for the segment's long-term development.
? Applicable □ Inapplicable
In accordance with business practices, the Company's commercial management and service business provides mortgage loan
guarantees to purchasers of commercial housing, with the type of guarantee being a phased guarantee. The term of the periodic
guarantee lasts from the effectiveness of guarantee contracts to the completion of mortgage registration and transfer of housing
ownership certificates to banks. As of June 30, 2026, the Company's outstanding amount for the above-mentioned phased
guarantees was RMB 4.99 million.
□ Applicable ? Inapplicable
II. Core Competitiveness Analysis
(1) Rail Transit Platform Screen Door Equipment and Systems
The Company has always adhered to independent innovation and took the lead in mastering core technologies in the field of
rail transit platform screen doors (PSDs). It has achieved a technological leap from import dependence to complete independence
and controllability, establishing an independent intellectual property (IP) system covering the entire industrial chain. After more
than 20 years of engineering practice and continuous iteration, the Company's R&D advantages have been increasingly
consolidated. It hosts the "Guangdong Provincial Engineering Technology Research Center" recognized by the Department of
Science and Technology of Guangdong Province, and has built an experienced international technical team with comprehensive
professional expertise. Its achievements have won awards including the "Guangdong Provincial Science and Technology Award"
and the "Shenzhen Science and Technology Progress Award." As a technology leader in the industry, the Company served as the
lead drafter of China's first national standard, Urban Rail Transit Platform Screen Door Systems (GB/T 46749-2025), and the first
industry standard, Urban Rail Transit Platform Screen Doors (CJ/T 236-2022). During the reporting period, the national standard
was officially implemented, further strengthening the Company's industry influence and competitive barriers. The Company also
participated in drafting the Guangdong provincial standard, Technical Standard for Foreign Object Detection in Risk Zones
Interim Report 2026 of China Fangda Group Co., Ltd.
Between Urban Rail Transit Platform Doors and Trains, which has been submitted for approval, continuing to build a multi-tiered
standards system comprising national, industry, and local standards.
The Company successfully developed the world's first AI fully-sliding PSD system, overcoming compatibility challenges for
existing high-speed railway (HSR) platform doors. This achievement represents three world-class breakthroughs and opens a new
frontier for HSR platform door development. Successfully applied at Shenzhen Futian High-Speed Railway Station, this
technology increased the station's train handling capacity by 50% and reduced average passenger entry time by five minutes during
the reporting period, further consolidating the Company's comprehensive leadership in rail transit equipment. Deeply engaged in
GoA4 fully automatic operation scenarios, the Company's PSD systems have achieved Safety Integrity Level 2 (SIL2) certification
and are deployed on over 20 fully automatic metro lines worldwide, more than 10 of which are the first GoA4 lines in their
respective regions, provinces, or cities.
Fangda Zhiyuan has been recognized as a "National IP Advantage Enterprise" and a "Shenzhen Specialized, Refined,
Distinctive, and Innovative (SRDI) Enterprise." Its urban rail transit platform safety doors were designated a "Single Champion
Product in Manufacturing" by the Ministry of Industry and Information Technology (MIIT), setting multiple "Shenzhen Enterprise
Innovation (China) Records." During the reporting period, the Company obtained certification for its IP Compliance Management
System, demonstrating that its IP management meets national standard requirements and further solidifying its competitive edge
within the industry.
As one of the first domestic enterprises to enter the metro PSD industry, the Company has established a full-chain service
loop covering R&D and design, equipment manufacturing, engineering services, maintenance, and spare parts supply, with one-
stop delivery capabilities. This vertically integrated synergy enables resource sharing and efficient coordination across all business
segments, allowing the Company to precisely meet diverse market demands for specialized products and services, effectively
reduce production and management costs, and continuously enhance profitability and overall competitiveness. During the
reporting period, the Company built the industry's first robotic assembly intelligent production line. Centered on the deep
integration of robotic clusters and AI algorithms, it achieves fully automated closed-loop operations from material feeding and
assembly to palletizing. In addition, the Company completed the customized development and pilot launch of a Manufacturing
Execution System (MES), advancing digital and refined production management and further strengthening the intelligent
manufacturing foundation of its industrial chain.
As China's urban rail transit network continues to expand, metro platform screen door systems are progressively entering their
maintenance and service cycles. The Company has made forward-looking deployments in the intelligent O&M field. Its
independently developed CBMS Intelligent O&M System, deployed in the Hong Kong 1254 Project, enables real-time monitoring
of equipment operating status, health assessment, and early warning, and can automatically generate solutions based on a fault
knowledge base. The Condition Monitoring Intelligent O&M System developed for the Singapore J152 Project has been
completed and entered the FAT confirmation stage, integrating functions such as full-line real-time equipment monitoring,
intelligent diagnostics, predictive maintenance, knowledge base, and statistical analysis. In terms of business model innovation, the
Company has secured the 30-year long-term maintenance project for half-height platform safety doors on the Singapore MRT
Jurong Region Line and the 6-year maintenance project for the Hong Kong East Rail Line, marking a successful transformation
from an equipment supplier to a full-lifecycle "product + service" provider. Currently, the Company's O&M service team spans
over 30 cities worldwide. Its Hong Kong subsidiary has established and put into operation a global PSD maintenance center,
integrating maintenance technologies, a global spare parts supply chain, and overseas after-sales team resources to create a unified
global PSD O&M service hub for the Group. As service capabilities and customer recognition continue to grow, revenue
contributions from technical services will keep increasing, injecting new momentum into the Company's high-quality development.
With over 20 years of deep engagement in the rail transit PSD system sector, the Company has earned widespread acclaim
and profound trust from numerous global clients through its products' outstanding safety, reliability, availability, and
Interim Report 2026 of China Fangda Group Co., Ltd.
maintainability, establishing Fangda as an industry benchmark. Fangda Zhiyuan has been named among the "Top 100 Industry
Leaders in Shenzhen" for consecutive years and included in the "Guangdong-Hong Kong-Macao Greater Bay Area Enterprise
Innovation List." During the reporting period, the Company received multiple authoritative client recognitions, including the sole
"2025 Annual Safety Gold Award" from MTR Corporation, the "2025 Outstanding Supplier" and "2025 Outstanding Contributor
to Line Opening" awards from Shenzhen Metro, the "2025 Outstanding Partner" award from Wuhan Metro, and the "Advanced
Supplier" recognition for Dongguan Rail Transit Line 1, further elevating its brand influence. In the field of rail transit platform
screen door systems, the Company collaborates with international firms including Alstom, Siemens, and LG on global projects.
As a pioneer in exporting China's high-end rail transit equipment, the Company leverages deep technical expertise and
exceptional project execution capabilities to continuously expand its global footprint. During the reporting period, Fangda PSD
systems ensured the seamless through-operation of all sections of India's NCRTC project, precisely meeting complex operating
conditions such as mixed high-speed rail and metro traffic. The project was inaugurated by Indian Prime Minister Narendra Modi.
Meanwhile, the PSD system for Platform 4 at Hong Kong International Airport Station on the Airport Express Line was put into
service, supporting the expansion of this international aviation hub. To date, Fangda PSD systems have been deployed in over 40
cities across more than 120 rail transit lines worldwide. The Company has secured multiple landmark projects in countries and
regions including Singapore, Malaysia, Hong Kong (China), Taipei (China), Thailand, India, Colombia, Greece, the Philippines,
and Kazakhstan. Its product R&D, design capabilities, on-time delivery, and consistent quality have gained widespread
recognition from overseas clients. Leveraging its strong brand image and market influence, the Company continues to strengthen
its core competitiveness and sustainable development capabilities.
In its global strategic deployment, leveraging profound technical expertise and extensive overseas project experience, the
Company has established a comprehensive standards database covering EN (European Standards), BS (British Standards), NFPA
Association), Singapore BCA (Building and Construction Authority), and Colombian national technical specifications. This has
enabled a closed-loop solution of "standards pre-research – product development – certification acceleration," ensuring precise
localization of technical parameters. In international market expansion, the Company has forged strategic partnerships with global
EPC giants such as Alstom, Siemens, and LG (South Korea), creating a synergistic "market + technology" model to jointly
participate in global rail transit PSD projects. In the Philippines, structural and IP protection tests were completed on half-height
door prototypes under extreme typhoon conditions, verifying the solution's robust environmental adaptability. In Vietnam, the
Company co-established a rail transit laboratory with Ho Chi Minh City University of Transport, promoting the localization of
technical standards through industry-academia-research collaboration. The Company actively benchmarks against and adopts
European railway technical standards to enhance the international compatibility of its system design. Furthermore, capitalizing on
the technological spillover from the national standard Urban Rail Transit Platform Screen Door System (GB/T 46749-2025),
which the Company led in formulating, it provides highly reliable products and full-lifecycle services for overseas projects. This
global standards adaptation capability has become a core competitive advantage in international markets, providing a robust
technical passport for "Made in China" to go global.
With over 20 years of dedication to the rail transit PSD sector, the Company has established a specialized organizational
structure covering the entire lifecycle from "R&D, design, manufacturing, and testing to installation and O&M," ensuring high
synergy and operational efficiency across all stages. To precisely address industry characteristics such as long project delivery
cycles and high customization requirements, the Company has formed dedicated teams for each key stage. The R&D center can
rapidly tackle technical challenges for customized customer needs; the design team possesses extensive experience in executing
complex engineering projects; large-scale manufacturing bases and a stable, reliable supply chain ensures high-quality product
delivery; and professional testing equipment coupled with comprehensive testing methodologies guarantee reliable product
performance. In engineering implementation, the Company holds Class-A Professional Contracting Qualification for Building
Interim Report 2026 of China Fangda Group Co., Ltd.
Mechanical & Electrical Installation, enabling it to independently undertake installation tasks. In O&M services, it operates a
centralized Operations & Maintenance Center and, supported by its global footprint, has established multiple regional maintenance
centers near client sites to deliver faster and more responsive localized support.
During the reporting period, the Company continued to optimize and upgrade its organizational structure. The Hong Kong
subsidiary officially established and commenced operations of its Global PSD Maintenance Center, integrating maintenance
technologies, a global spare parts supply chain, and overseas after-sales resources. This initiative created a unified global PSD
O&M service hub for the Group, further enhancing its global service network layout. Meanwhile, the Company completed the
customized development and pilot launch of its MES system, advancing manufacturing toward digitalization and refined
management, thereby providing robust support for improved industrial chain collaboration efficiency. Leveraging its increasingly
sophisticated global service architecture and digital management capabilities, the Company has achieved a strategic leap from
"product delivery" to "full-lifecycle services," fully demonstrating the forward-thinking nature and competitiveness of its
organizational structure and service system.
(2) Intelligent Curtain Wall Systems and Materials
Adhering to innovation-driven development, the Company leverages AI technology as a key enabler to drive the in-depth
intelligent transformation of the traditional curtain wall industry, continuously reinforcing its technological leadership in the sector.
As of the end of the reporting period, the Company had cumulatively obtained 721 patents and 31 software copyrights,
participated in the formulation of 35 national and industry technical specifications and standards, and set 20 new records
recognized by "China Enterprise New Records," establishing a comprehensive innovation system encompassing intellectual
property protection, standard development, and technology commercialization.
The Company has established a robust industry-academia-research collaborative innovation platform. It was among the first
in the industry to set up a postdoctoral workstation and a provincial-level engineering technology research center. In 2025, it was
approved as a "Shenzhen Postdoctoral Innovation Practice Base" and signed a long-term strategic cooperation agreement with the
College of Mechanics and Civil Engineering at Jinan University. This partnership covers collaboration in areas such as big data for
building curtain walls, intelligentization, complex steel structure systems, and new material performance research, fully leveraging
the technical strengths of both parties to ensure the Company's sustained R&D leadership in the high-end curtain wall sector.
Among its subsidiaries in the smart curtain wall systems and materials business, six are recognized as National High-Tech
Enterprises (including three "Specialized, Refined, Distinctive, and Innovative" enterprises), forming a robust platform foundation
supporting high-quality development.
Product innovation closely aligns with strategic directions such as green and low-carbon development and prefabricated
construction. A series of independently developed new products have been applied in landmark projects across China. Aluminum
veneer and aluminum honeycomb composite panel products passed the authoritative assessment by China Testing & Certification
Group (CTC) and were awarded the highest level in China's green building material certification—the "Three-Star Green Building
Material Product Certification." Green energy-efficient curtain wall systems compliant with international standards have achieved
large-scale application in overseas markets including Australia, the Middle East, and Southeast Asia, accelerating the conversion
of technological achievements into global market value. This fully demonstrates the Company's leapfrog development capability
from technological breakthroughs to industry leadership.
With over 30 years of deep engagement in the curtain wall systems and new materials sector, the Company has always upheld
a quality-first philosophy, building a strong brand value and market reputation through its outstanding product capabilities and
service system. The Company has successively received more than 200 awards at or above the provincial and ministerial level,
including the "National Quality Award," the "Lu Ban Award (National Quality Engineering Award)," the "Zhan Tianyou Civil
Engineering Award," and the "China Building Decoration Award." It has delivered over 1,000 landmark quality projects
worldwide, establishing itself as a leading brand in the high-end curtain wall sector. The Fangda trademark has been recognized as
Interim Report 2026 of China Fangda Group Co., Ltd.
a "China Well-Known Trademark" and has been honored with titles such as "International Reputation Brand" and "Shenzhen
Time-Honored Brand." During the reporting period, the Company received multiple brand honors, including "Outstanding
Shenzhen Brand Enterprise," "Top 100 Shenzhen Brands," "Shenzhen Well-Known Brand," and "Greater Bay Area Well-Known
Brand," and was named a "Brand Building Benchmark Enterprise." Its brand building achievements continue to receive
authoritative recognition, with brand influence and market credibility steadily rising. During the reporting period, the Company
was awarded the title of "Advanced Unit" in the 2026 Shenzhen Building Doors, Windows and Curtain Wall Keyuan Award
Academic Exchange, and several curtain wall designers won the "Outstanding Paper Award" for their academic achievements,
further enhancing industry recognition. The continued consolidation of Fangda's brand value and industry standing provides a
strong foundation of market credibility and customer trust for the Company's high-quality development.
The Company's wholly-owned subsidiary, Fangda Construction Technology, holds the highest level qualifications for curtain
wall design and construction enterprises in China—Grade 1 Professional Contracting Qualification for Building Curtain Wall
Engineering and Grade A Qualification for Building Curtain Wall Engineering Design. It is one of the leading enterprises in the
curtain wall industry in China. With over 30 years of deep engagement in the industry, the Company's smart curtain wall projects
now span diverse sectors, including super high-rise buildings, large-scale public facilities, corporate headquarters, commercial
complexes, hospitals, and hotels. Characterized by varied project forms and complex structures, these undertakings have enabled
the Company to accumulate extensive engineering construction experience and cross-sector project delivery capabilities. During
the reporting period, the Company was included in the Top 10 Innovative Applications List of the curtain wall industry for its
"Sky-High Curtain Wall Construction" technology for ultra-high suspended curtain walls, fully demonstrating its premier
construction capabilities under extreme conditions and in the installation of oversized, irregularly shaped curtain walls. Leveraging
its systematic intelligent construction framework, extensive project management expertise, and superior construction quality, the
Company continues to earn widespread recognition and acclaim from clients, further consolidating its leading position in the
industry.
After years of focused development, the Company's intelligent curtain wall systems and new materials business has
established a nationwide strategic layout centered on Shenzhen as its headquarters, supported by four major production bases in
Shanghai, Chengdu, Dongguan, and Ganzhou. This network underpins an integrated full-industry-chain service system covering
R&D and design, manufacturing, project management, construction and installation, and maintenance services. Among these,
Fangda (Ganzhou) Low-Carbon Intelligent Manufacturing Base—a "5G + Smart Factory" integrating 5G, digitalization, and the
Internet of Things—has been recognized as a national-level "Green Island Project," continuously leading industry advancement in
intelligent manufacturing and green, low-carbon development. Leveraging this well-structured production base network and strong
industrial chain synergy, the Company effectively optimizes production costs, enhances operational efficiency, and rapidly
responds to evolving market demands—providing a solid foundation for increasing market share and strengthening comprehensive
competitiveness, thereby further consolidating its leadership position in the high-end curtain wall sector.
The Company consistently regards talent as the core engine of innovation-driven growth. Through years of accumulation, it
has built a senior management team with both global vision and local expertise, alongside a mid-level backbone workforce known
for professional competence and strong execution capabilities. In terms of talent recruitment and development, the Company was
approved to establish the "Shenzhen Postdoctoral Innovation Practice Base," further strengthening the "university-enterprise-
industry" talent circulation channel. It signed a long-term strategic cooperation agreement with the College of Mechanics and Civil
Engineering at Jinan University, carrying out university-enterprise collaboration in areas such as big data for building curtain walls,
intelligentization, complex steel structure systems, and new material performance research. Both parties fully leverage their
respective technical strengths in building curtain walls and finite element simulation analysis to continuously supply high-caliber
R&D talent for the high-end curtain wall sector. In 2026, the Company plans to recruit multiple highly educated graduates for
Interim Report 2026 of China Fangda Group Co., Ltd.
targeted reserve training, further solidifying the R&D talent pipeline. During the reporting period, the Company established an AI
Research and Application Promotion Team to cultivate cross-disciplinary composite technical talent and advance the deep
integration of AI technology with the curtain wall industry. The Company continues to recruit high-end international technical
professionals in regions such as Australia and the Middle East, injecting strong momentum into overseas market expansion and
technological innovation. The Company has established a comprehensive incentive mechanism and evaluation system for the
commercialization of scientific and technological achievements, fully stimulating the innovation vitality of R&D personnel. By
continuously optimizing career development pathways, the Company leverages technological innovation to support and drive
quality improvement and efficiency enhancement, forging a solid talent foundation for high-quality enterprise development.
(3) New energy industry
The Company's new energy business focuses on solar photovoltaic (PV) power stations and Building-Integrated Photovoltaics
(BIPV), spanning both the construction and PV sectors to create a unique cross-industry integration advantage. As one of the
earliest domestic enterprises engaged in the design, manufacturing, and integration of BIPV systems, the Company took the lead in
deploying solar photovoltaic curtain wall technology over two decades ago, accumulating profound technical expertise and
extensive project experience.
The new energy sector is highly synergistic with the Company's core smart curtain wall business. Distributed photovoltaic
systems integrate seamlessly with building structures, creating complementary effects across technological pathways, product
integration, and customer resources. Drawing on more than twenty years of experience in electromechanical system integration
and project management, the Company maintains a core team equipped with comprehensive professional qualifications and
exceptional cross-domain integration capabilities, enabling it to deliver end-to-end solutions—from PV curtain wall design and
construction to operation and maintenance—for clients. During the reporting period, the Company continued to deepen its
engagement in the core BIPV sector, providing a photovoltaic power generation system solution for the Shenzhen Qianhai
Financial Holdings Tower. The project is expected to generate an average of 105,000 kWh annually, further consolidating the
Company's technological leadership in high-end building BIPV applications. The application of green and eco-friendly materials,
including BIPV photovoltaic components, accounts for an increasing proportion of smart curtain wall projects. The successful
delivery of projects such as the Shenzhen Qianhai Financial Holdings Tower and the Guangzhou Kugou Music Building has
effectively reduced building energy consumption and carbon emissions. For the Australian market, the Company has completed
the design of the BIPV power generation unit curtain wall system and is currently advancing sample fabrication and fire
performance testing. Leveraging its dual technical accumulation in construction and photovoltaics, along with industrial chain
synergies, the Company is accelerating the large-scale application of green energy in building scenarios, continuously
strengthening its core competitiveness in the Building Integrated Photovoltaics (BIPV)
(IV) Commercial Management and Services
The Company is deeply engaged in commercial management and property services. Leveraging high-quality assets in core
cities such as Shenzhen and Nanchang, it adheres to a dual-engine strategy of "precise positioning + digital empowerment."
Through coordinated operations across diverse business formats, the Company has established a business model featuring
"simultaneous leasing and sales, with complementary commercial and office spaces," effectively mitigating risks from single-
market fluctuations and maintaining a solid operational foundation.
The Company is comprehensively advancing the digital upgrade of "AI + Property Services" by integrating service data to
enable one-click access to high-frequency services such as fee inquiries and repair requests, driving the transformation of property
services from isolated smart solutions to integrated intelligent operations. In commercial operations, through refined support
measures and differentiated operating strategies, occupancy rates remain at industry-leading levels, while commercial formats
continue to be refreshed and upgraded, further enhancing brand vitality. Empowered by a professional operations team honed over
years of experience and advanced digital tools, the Company is well-positioned to continuously enhance brand value and
consolidate its dominant position in regional markets.
III. Industry Situation During the Reporting Period
Interim Report 2026 of China Fangda Group Co., Ltd.
(1) Intelligent Rail Transit Platform Screen Door Equipment and Systems
China's rail transit industry is undergoing a critical transition from "scale expansion" to "quality enhancement." The combined
force of multiple policies—including the Transport Power strategy, integrated urban cluster development, and the "Dual Carbon"
goals—is accelerating the industry's shift toward a new stage of high-quality development. In 2026, eight ministries including the
Ministry of Transport jointly issued the Implementation Plan for Improving Intercity Commuting Efficiency in Metropolitan Areas
(2026–2030). The policy calls for "promoting the integrated connection of eligible trunk railways, intercity railways, metropolitan
(suburban) railways, and urban rail transit systems, forming multi-line and multi-point transfer networks with urban rail transit."
The integration of different rail transit systems imposes higher requirements on interface compatibility and multi-train-type
adaptability for platform screen door systems, creating broader application opportunities for the Company's technological
advantages in screen door system integration and standard adaptation. The issuance of the National Standard Plan Technical
Requirements for Energy Conservation in Urban Rail Transit Operations provides unified technical specifications for energy
conservation and carbon reduction across the industry. These policies mark a comprehensive industry transformation from an
emphasis on construction to a balanced focus on both construction and operation, with improved quality and efficiency.
Retrofitting existing lines, smart upgrades, and the application of green energy-saving technologies have become key themes,
providing clear policy guidance and market opportunities for the Company to deepen its presence in emerging segments such as
stock asset renovation, intelligent O&M, and green energy-saving technologies.
According to data from the Ministry of Transport, as of June 2026, 54 cities nationwide had opened 346 urban rail transit
lines, with a total operating mileage of 11,848.8 km, an increase of 138.5 km from the end of 2025. During the 15th Five-Year
Plan period, some urban rail lines are expected to enter an upgrade and retrofit phase, opening up significant market potential for
stock asset renovation and post-operation O&M services.
As countries along the Belt and Road continue to increase investment in urban rail transit infrastructure, Chinese high-end
equipment manufacturers face important strategic opportunities. With robust demand for rail transit construction in emerging
markets such as Southeast Asia, the Middle East, and South America, China's rail transit equipment is transitioning from a
"product export" model to a globalized model featuring "technical standards + branding."
As a leader in the construction and O&M of rail transit platform screen door systems, the Company will continue to be guided
by national strategies and relevant industrial policies, align with industry trends and market demands, intensify technological
innovation, deepen its engagement in new growth areas such as stock asset renovation and smart upgrades, actively expand
overseas incremental markets, and sustain its global leadership, contributing "Chinese Solutions" to the development of urban rail
transit worldwide.
(1) Main products and purposes
China Fangda Group Co., Ltd. has been deeply engaged in the rail transit platform screen door sector for over two decades.
Its core products consist of intelligent platform screen door systems deployed in urban rail transit and high-speed railway stations,
complemented by full-lifecycle operation & maintenance services and value-added technical support.
① Urban Rail Transit Platform Screen Door Systems
Platform screen door systems for urban rail transit are installed along the edges of metro and light rail station platforms. They
physically separate the track area from the passenger waiting area and are equipped with continuously movable door barriers that
correspond to train doors and support multi-level control for opening and closing. The Company offers a comprehensive product
portfolio covering three major series: full-height enclosed, full-height non-enclosed, and half-height platform screen doors,
capable of meeting the requirements of urban rail transit lines across different transit systems and climatic conditions.
In terms of safety, the platform screen door system effectively prevents passengers from accidentally falling onto the tracks
and blocks unauthorized access to tunnel areas. In the event of fire or other emergencies, the system can coordinate with
environmental monitoring, signaling, and other systems to swiftly switch to smoke extraction and passenger evacuation modes,
Interim Report 2026 of China Fangda Group Co., Ltd.
providing multiple layers of safety protection. In terms of environmental improvement, the system significantly blocks dust, noise,
and piston wind pressure from the tunnel from transmitting to the platform waiting area, creating a quiet, comfortable, and
temperature-controlled environment for passengers. In terms of smart services, the Company's products innovatively integrate
intelligent passenger flow counting functionality, enabling dynamic guidance during peak hours to evenly distribute passengers
across lower-density carriages. Meanwhile, the door platform can be equipped with multimedia interactive terminals supporting
diverse functions such as information announcements, news feeds, and commercial advertising, serving as a key interactive
interface for smart stations.
② High-Speed Railway Platform Safety Door Systems
In 2025, the Company successfully launched the world's first intelligent AI fully-sliding platform screen door system for
high-speed railways. Specially developed for the complex operating environment of high-speed rail, this system achieves a key
technological breakthrough in the field of platform safety doors. Leveraging AI visual recognition and an intelligent control
system, the system identifies different incoming high-speed train models to achieve millimeter-level positioning accuracy and
millisecond-level response control. It precisely aligns with train door positions to enable automatic opening and closing of
platform safety doors, effectively resolving the longstanding industry challenge posed by diverse high-speed train models and non-
standardized door positions. The product has been successfully deployed at Shenzhen Futian High-Speed Railway Station,
achieving three "firsts in China":
– the first system compatible with all high-speed train models,
– the first installed directly at the edge of a high-speed rail platform, and
– the first to obtain CRCC (China Railway Certification Center) certification—
thereby pioneering an entirely new segment in high-speed rail platform door systems.
During the Reporting Period, the Company's high-speed railway platform screen door business achieved a critical leap from
benchmark demonstration projects to large-scale replication. In July 2026, the Company successively won bids for the platform
screen door installation projects at Platforms 11 and 12 of Shenzhen North Station and Platforms 1–4 of Humen High-Speed
Railway Station, becoming the first domestic manufacturer to achieve full coverage of both full-height and half-height platform
screen door systems on high-speed railway platforms. Following the commissioning of Futian High-Speed Railway Station, train
handling capacity increased by 50%, average passenger entry time was reduced by 5 minutes, and the station successfully
withstood heavy passenger flows during the Spring Festival travel rush and the May Day holiday.
③ Full-Lifecycle Operation & Maintenance Services
Leveraging its independently developed intelligent O&M management platform and global service network, the Company
provides full-lifecycle O&M services, including remote fault diagnosis, on-site inspection and maintenance, spare parts supply,
and system upgrades. These capabilities enable real-time monitoring and trend prediction of equipment conditions, effectively
improving fault response efficiency and ensuring the long-term safe and stable operation of transit lines.
(2) Main business model
The Company's rail transit intelligent screen door equipment industry is operated by its subsidiary, Fangda Zhiyuan, which is
an integrated supplier and service provider of rail transit intelligent screen door systems, encompassing research and development,
design, manufacturing, installation, and technical services, with a complete industrial chain. A mature and complete management
system for research and development, procurement, production, sales and O&M has been established. In R&D, the Company
employs a project-driven innovation mechanism that integrates fundamental research with specific customer requirements. In
procurement, a dedicated procurement department manages sourcing activities. In production, operations are managed according
to contract terms and customer production instructions. In sales, the Company serves metro operators and electromechanical
Interim Report 2026 of China Fangda Group Co., Ltd.
general contractors in the global rail transit sector exclusively through direct sales, with no distribution channels involved. In
operation & maintenance, the Company has deployed an intelligent platform screen door O&M support system capable of real-
time data monitoring and rapid fault diagnosis and resolution.
(3) Market competition pattern in which the Company is located and the Company's market position
As a global leader in rail transit platform screen door systems, China Fangda Group Co., Ltd. continues to lead the market
thanks to its deep technical expertise and strong brand influence. The Company's intelligent rail transit platform screen door
systems have achieved a coverage rate of over 60% among Chinese cities with operational metro lines, serving more than 120 rail
transit lines across over 40 cities worldwide. Its market share has consistently ranked among the industry's top for many
consecutive years. Fangda Zhiyuan (the Company's subsidiary) has been repeatedly included in the "Top 100 Industry Leader
Enterprises in Shenzhen," underscoring its absolute leadership and innovation-driven impact in this specialized field.
Actively responding to China's "Belt and Road" Initiative, the Company has become a pioneer in exporting high-end rail
transit equipment overseas. For over a decade, it has deeply engaged international markets and secured multiple landmark platform
screen door system projects in "Belt and Road" countries and regions—including Singapore, Malaysia, Thailand, India, Colombia,
Greece, the Philippines, Kazakhstan, Hong Kong SAR, and Taipei. During the Reporting Period, all sections of the India NCRTC
project commenced through-service operations, with Indian Prime Minister Modi officiating the inauguration ceremony. Platform
the project was awarded the MTR "2025 Safety Gold Award" (the sole gold award recipient). With the continuous expansion and
deepening of its overseas business, the Company's global footprint is becoming increasingly robust, and its international
competitiveness is steadily strengthening—providing sustained momentum for high-quality cooperation under the "Belt and Road"
framework.
The Company has established a core technology system with fully independent intellectual property rights. It led the drafting
of China's first industry standard, Platform Screen Doors for Urban Rail Transit, and the first national product standard, Platform
Screen Door Systems for Urban Rail Transit (GB/T 46749-2025), which officially came into effect on May 1, 2026. Additionally,
the Company participated in developing multiple standards, including:
– "Technical Guidelines for Smart Station Construction in Rail Transit,"
– "Technical Specification for Intelligent Foreign Object Detection Systems in the Gap Between Urban Rail Transit Platform
Screen Doors and Train Doors," and
– "High-Speed Railway Platform Door Systems,"
demonstrating its profound technical foundation and leadership in standard-setting.
Leveraging its outstanding technical capabilities and product quality, the Company's urban rail transit platform safety doors
were recognized by the Ministry of Industry and Information Technology as a "Manufacturing Single Champion Product." During
the Reporting Period, the Company was named among the "Top 100 Shenzhen Brands" for four consecutive years and received the
advanced honor of "Outstanding Shenzhen Brand Enterprise." Its products were among the first to pass the Shenzhen "Three
Identicals" (identical production line, identical standards, identical quality) certification, earning the "Premium Shenzhen Product"
designation. In addition, the Company has successively received multiple honors and qualifications, including "National
Intellectual Property Advantage Enterprise," "Guangdong Provincial Science and Technology Award," "National Key New
Product," "National Torch Program Industrialization Demonstration Project," "Guangdong Provincial Engineering Technology
Research Center for Intelligent Rail Transit Platform Screen Doors," "Shenzhen Municipal Science and Technology Progress
Award," and "Shenzhen Specialized, Refined, Distinctive, and Innovative Enterprise." It also took the lead in obtaining IRIS
management system and RAMS certifications under international railway industry standards. During the Reporting Period, the
Interim Report 2026 of China Fangda Group Co., Ltd.
Company successfully passed the annual audits for all four management systems—IRIS, ISO 14001, ISO 45001, and ISO 27001—
ensuring the effective operation of these systems and the continued validity of their certificates. The Company holds a substantial
portfolio of patents and software copyrights in China and abroad, forming a comprehensive core technology cluster and
intellectual property system based entirely on independent IP—laying a solid foundation for sustaining its competitive edge in the
market.
(2) Intelligent Curtain Wall Systems and Materials
In the first half of 2026, driven by the in-depth implementation of the "Dual Carbon" strategy and the ongoing guidance of the
"Good Housing" policy, China's curtain wall industry is accelerating its comprehensive transformation from scale expansion to
high-quality development.
Regarding the policy environment, the State continues to strengthen mandatory constraints on green buildings. As a
foundational mandatory standard in the field of building energy efficiency, the General Code for Energy Efficiency and
Renewable Energy Application in Buildings (GB 55015-2025) officially came into effect on June 1, 2026. It comprehensively
raises energy efficiency performance requirements for building envelopes, further lowers the heat transfer coefficient limits for
exterior walls, roofs, doors, and windows, and mandates the design and installation of solar energy systems in new buildings. The
Guidelines for the Construction of "Good Housing" (Trial) (Draft for Comments) issued by the Ministry of Housing and Urban-
Rural Development specifies that "good housing" in the new era should feature safety, comfort, greenness, and intelligence. As the
core system ensuring building safety, energy efficiency, and comfort, the building envelope is subject to higher performance
requirements. The 15th Five-Year Plan for Urban Renewal issued by the State Council sets targets to renovate 4,000 urban villages
and upgrade 1,500 old neighborhoods and industrial zones during the 15th Five-Year Plan period. Urban renewal is shifting from
large-scale incremental expansion to quality improvement and efficiency enhancement of existing stock, injecting new structural
growth momentum into the curtain wall industry. The National Energy Administration issued the Action Plan for Energy
Conservation and Carbon Reduction in the Energy Sector (2026–2028), which promotes pilot projects for Building Integrated
Photovoltaics (BIPV) design and construction, supports energy-saving and carbon-reducing retrofits of existing buildings, and
facilitates the transition of buildings from energy consumers to energy producers. The General Offices of the CPC Central
Committee and the State Council issued the Opinions on Advancing Energy Conservation and Carbon Reduction at a Higher Level
and with Higher Quality, proposing strict energy efficiency management for new buildings, promoting the scaled development of
ultra-low energy consumption buildings, and advancing the orderly construction of BIPV. This comprehensive policy package has
unlocked significant incremental market space for high-performance energy-efficient curtain walls and BIPV systems.
In terms of market landscape, the industry as a whole still faces considerable competitive pressure. Overcapacity in the
construction sector continues to squeeze profit margins, and resources are increasingly concentrating in leading enterprises with
strong R&D capabilities and solid financial strength. Industry competition has escalated from single-product price competition to a
contest of comprehensive capabilities across the entire industrial chain—encompassing R&D, design, manufacturing, installation,
and O&M. The ability to provide integrated solutions has become a key benchmark for measuring an enterprise's core
competitiveness.
On technological innovation, building curtain walls are rapidly evolving from traditional envelope structures toward greener,
smarter, and lower-carbon solutions. The penetration rate of green products such as BIPV, smart dimming glass, and ultra-low
energy consumption curtain wall systems is steadily increasing, and high-performance energy-efficient curtain walls have become
standard for new public buildings. The deep integration of digital technologies has emerged as a new industry trend. Technologies
including forward BIM design, IoT sensing, drone inspection, and AI visual detection are increasingly applied throughout the full
lifecycle of curtain walls—from design and production to construction and O&M—driving a comprehensive upgrade from
traditional manufacturing to intelligent manufacturing.
In overseas markets, seizing infrastructure development opportunities along the Belt and Road and in emerging markets, the
Company continues to deepen its global footprint. With accelerating urbanization in Southeast Asia, the Middle East, and other
Interim Report 2026 of China Fangda Group Co., Ltd.
regions, demand for high-end curtain walls continues to grow. The model of "regional manufacturing centers plus localized
services" is becoming a vital pathway for the industry's overseas expansion. During the reporting period, the Company pursued
dual-track development in both domestic and international markets. In the domestic market, the Company has precisely capitalized
on policy opportunities arising from urban renewal and green building initiatives, continuously consolidating its brand influence
and market position in the high-end curtain wall sector. In overseas business, the Company has steadily implemented its
internationalization strategy, achieving leapfrog breakthroughs in orders from its two core regional markets—Australia and the
Middle East—and continuing to deepen its presence in overseas markets.
(1) Main products and purposes
The Company's intelligent curtain wall systems are widely applied in exterior wall and roof projects for urban public
buildings and high-end residential properties, including premium office buildings, corporate headquarters, urban complexes, hotels,
large-scale venues, and government office buildings. The products integrate modern building technology with intelligent systems,
incorporating coordinated control of HVAC, daylighting, ventilation, power supply, and other supporting building technologies.
Through digitalization and artificial intelligence, they enable precise optimization of building energy consumption, enhancing
architectural aesthetics while significantly improving energy-saving and carbon-reduction performance. The Company's intelligent
curtain wall projects have won top industry awards such as the Luban Award (National Quality Engineering Award) on multiple
occasions. Its competitiveness consistently ranks among the forefront of the global industry, and it is widely recognized as a
leading brand in the global curtain wall sector, fully demonstrating the high-quality characteristics of new quality productive
forces.
Backed by deep technical expertise and a professional service team, the Company actively provides technical services for
existing building envelope systems—including inspection and assessment, energy-efficiency retrofits, waterproofing, anti-
corrosion treatments, and maintenance—covering over 8 million square meters of building area and establishing strong
competitive advantages in the industry. During the Reporting Period, with the official implementation of the General Code for
Energy Efficiency and Renewable Energy Application in Buildings (GB 55015-2025) and the continued rollout of urban renewal
policies, market demand for energy-efficient retrofits of existing buildings accelerated, opening up new growth opportunities for
the Company's building maintenance and energy-efficient retrofit business.
New materials represent a key strategic focus for the Company, with products centered on low-carbon, eco-friendly,
intelligent, and sustainable features. The Company possesses robust R&D capabilities and advanced manufacturing bases for
PVDF-coated aluminum composite panels and aluminum honeycomb panels. Its products have been widely applied in major
projects across more than 160 cities globally, consistently delivering high-quality material support for green buildings and urban
renewal initiatives. During the Reporting Period, the Company continued to advance technological innovation in new materials
and optimize production capacity, further enhancing product performance and market competitiveness, thereby providing robust
support for the industry's green and low-carbon transition.
(2) Main business modes, specific risks and changes;
The Company's intelligent curtain wall systems and new materials business primarily follows an integrated "R&D–design–
production–construction" operating model, which remained unchanged during the reporting period. Contracts for intelligent
curtain wall design and installation are primarily secured through public or invited tenders. The Company delivers end-to-end
solutions covering conceptual design, raw material procurement, production, on-site installation, and after-sales service, tailored to
specific order requirements. This model is inherently non-standardized and highly customized. Gross margins vary significantly
across orders due to multiple factors, including the client's budget allocation, bidding competition intensity, material selection,
structural complexity of the building, project timeline, on-site construction management, and cost control capabilities.
Project payment settlements typically follow staged milestones: advance payment, progress payments, acceptance payment
upon completion, final settlement payment, and retention (quality assurance) deposit. The timing and proportions of each payment
are executed based on project progress and contractual terms. Given the long implementation cycles of curtain wall projects, the
Interim Report 2026 of China Fangda Group Co., Ltd.
business is highly sensitive to shifts in national industrial policies, fluctuations in raw material prices, and changes in labor market
conditions. Significant variations in technical requirements across projects preclude simple replication of past experience, placing
high demands on the Company's technology integration and project management capabilities.
Cash flow risk remains one of the primary challenges facing the curtain wall industry. Under the typical engineering
contracting model, companies must front substantial capital for material procurement and construction, while project repayments
often have extended cycles. Against the backdrop of overall pressure on the construction industry, some clients are facing liquidity
constraints, resulting in an increase in accounts receivable and uncertainty in collection. Additionally, raw material price volatility
and rising labor costs may adversely affect project profitability. In response to these challenges, during the Reporting Period, the
Company continued to optimize its client structure by prioritizing high-quality clients with strong financial strength and good
credit, as well as government-backed projects. Meanwhile, the Company strengthened full-lifecycle capital budgeting and
collection tracking for projects, enhanced risk identification and response capabilities, and ensured healthy and stable operating
cash flow.
(3) Market competition pattern in which the Company is located and the Company's market position
In the first half of 2026, amid ongoing macroeconomic adjustments and profound policy reforms, the architectural curtain
wall industry exhibited a competitive landscape characterized by "intensified competition over existing market share and
accelerated consolidation among leading players." In the domestic market, affected by the deep adjustment of the real estate sector,
slowing growth in new projects, and increasingly fierce competition in the existing market, the industry faced overall revenue
pressure and narrowing profit margins, making cash flow management critical to corporate survival. Some SMEs with weaker risk
resilience encountered operational difficulties or even exited the market. Industry resources further consolidated toward leading
enterprises with robust financial strength and outstanding technical capabilities, driving a continuous rise in market concentration.
In response to structural adjustments in the domestic market, the Company firmly advanced its internationalization strategy,
intensifying expansion efforts in overseas markets including the Middle East, Southeast Asia, and Australia. Its increasingly
refined global layout has effectively hedged against operational risks arising from domestic market volatility.
During the Reporting Period, leveraging its profound technological accumulation, superior service quality, and continuously
growing brand influence, the Company further solidified its position among the industry leaders. Facing a complex and volatile
market environment, the Company continued to strengthen its core competitiveness through measures such as optimizing its client
structure, deepening regional penetration, accelerating overseas expansion, and advancing intelligent manufacturing. The
Company's intelligent curtain wall products have won top national awards such as the Luban Award on multiple occasions, and it
has been consecutively ranked among the "Top 500 Enterprises in Shenzhen" and the "Top 500 Manufacturing Enterprises in
Guangdong." It maintains leading brand awareness and market reputation in the global curtain wall sector, fully demonstrating the
comprehensive strength and counter-cyclical resilience of an industry leader.
(3) New energy industry
As a key pathway for building energy efficiency and carbon reduction, Building-Integrated Photovoltaics (BIPV) is
accelerating its transition from "technology demonstration" to a new phase of "large-scale application". In the first half of 2026,
the National Energy Administration issued the Action Plan for Energy Conservation and Carbon Reduction in the Energy Sector
(2026–2028), which explicitly calls for pilot promotion of BIPV design and construction, supports energy-efficient and low-
carbon retrofits of existing buildings, and promotes the transformation of buildings from energy consumers to energy producers
The General Office of the CPC Central Committee and the General Office of the State Council issued the Opinions on Advancing
Energy Conservation and Carbon Reduction at a Higher Level and with Greater Quality, which calls for stringent energy
efficiency management of new buildings, promotes the large-scale development of ultra-low energy consumption buildings, and
advances the orderly implementation of BIPV construction. Against this policy backdrop, the BIPV market continues to unlock
significant potential, emerging as a key direction for the green transformation of the construction industry.
BIPV transforms buildings from "energy consumers" into "energy producers" by deeply integrating photovoltaic power
generation with building material functions. It enables on-site consumption of clean energy while meeting the performance
Interim Report 2026 of China Fangda Group Co., Ltd.
requirements of the building envelope. With the continued decline in PV module costs, steady improvements in power generation
efficiency, and the intensive rollout of supportive policies, the economic viability of BIPV systems has improved significantly.
The penetration rate is expected to rise further, injecting sustained growth momentum into the industry. The Company will
continue to monitor technological developments and market opportunities in the BIPV sector, actively advancing related business
deployment and industrialization exploration.
(IV) Commercial Management and Services
In the first half of 2026, under the macro-policy tone of "promoting the stable and healthy development of the real estate
market," the commercial real estate market continued its trajectory of "structural optimization and value reshaping." Regional
divergence intensified further, highlighting the value of premium commercial assets in core cities. As the core engine of the
Greater Bay Area, Shenzhen maintains active demand for office buildings and commercial properties, underpinned by its robust
industrial base and sustained net population inflows. Technology companies remain the primary source of demand, with emerging
sectors such as software development, artificial intelligence, and big data showing outstanding performance. The deepening
integration of Shenzhen and Hong Kong provides strong support for cross-border operations and industrial collaboration among
enterprises. With the accelerating integration of the Guangdong-Hong Kong-Macao Greater Bay Area and the deepening
advancement of urban renewal in Shenzhen, commercial real estate in core areas still holds substantial development potential.
Countermeasures
The Company's commercial development projects primarily adopt a business model combining self-development, partial
sales, and partial self-held ownership. Currently, the Company's developed products mainly comprise office spaces, commercial
properties, and apartments. Through years of professional operation, the Company has established a lean and efficient
management team, comprehensive management processes, and advanced information systems, enabling it to provide high-quality
commercial operation and management services. Its professional capabilities, brand awareness, occupancy rates, and revenue
levels have continued to improve.
Leveraging the brand advantages, differentiated positioning, and prime location of its commercial projects, the Company
maintains a solid market position in the regional market. However, the Company must still navigate multiple risks going forward,
including property price volatility, policy regulation, and market competition. The Company will mitigate operational and
management risks and ensure robust, sustainable development through refined management, flexible adjustment of business
strategies, precise capitalization on policy opportunities, and continued strengthening of brand building and marketing promotion.
III. Core business analysis
Overview
See I. Major businesses of the Company during the Report Period
Year-on-year changes in major financial data
In RMB
This report period Same period last year YOY change (%) Reason
Turnover 1,551,057,757.28 1,598,286,450.04 -2.95%
Operating cost 1,263,984,601.43 1,307,537,649.28 -3.33%
Sales expense 25,412,850.11 22,633,578.48 12.28%
Administrative expense 82,094,951.56 90,172,531.38 -8.96%
Financial expenses 46,105,794.26 37,580,544.45 22.69%
Mainly due to an
Income tax expenses 9,569,899.61 -2,457,491.76 489.42%
increase in total profit
Interim Report 2026 of China Fangda Group Co., Ltd.
R&D investment 55,615,640.54 61,514,176.71 -9.59%
This was primarily
attributable to an
increase in net cash
Cash flow generated by flow from operating
business operations, 7,667,221.67 -266,347,227.85 102.88% activities of the curtain
net wall systems and
materials business
compared to the same
period last year.
The net cash outflow
from investing
activities in the current
period was primarily
attributable to
expenditures on the
purchase of bank
wealth management
products and the
Cash flow generated by
acquisition and
investment activities, -48,776,755.10 32,549,961.22 -249.85%
construction of long-
net
term assets; the net
cash inflow from
investing activities in
the prior period was
primarily attributable
to cash received from
the refund of land use
rights by Fangda
Zhiyuan.
The net cash outflow
from financing
activities in the current
period was primarily
attributable to net
repayment of bank
Net cash flow borrowings and
generated by financing -382,287,020.09 -41,832,513.28 -813.85% expenditures on share
activities repurchases; the
decrease compared to
the prior year was
primarily attributable
to a decline in net cash
flows from bank
borrowings.
Mainly due to changes
in net cash flows from
Net increase in cash
-429,703,769.32 -272,127,188.36 -57.91% operating, investing,
and cash equivalents
and financing
activities.
This was primarily
attributable to a
Credit impairment ("-" decrease in bad debt
-11,064,393.24 -59,005,981.56 81.25%
for loss) provisions for accounts
receivable accrued in
the current period.
Net profit attributable 54,501,089.34 17,289,598.23 215.22% Net profit attributable
Interim Report 2026 of China Fangda Group Co., Ltd.
to the shareholders of to shareholders of the
the parent company parent company
increased compared to
the same period last
year, primarily due to
improved operating
performance and
further strengthened
management of
receivables.
Receivables decreased
from the beginning of
the year during the
Reporting Period,
resulting in a
corresponding
reduction in
impairment provisions
for receivables.
Major changes in profit composition or sources during the report period
□ Applicable ? Inapplicable
The profit composition or sources of the Company have remained largely unchanged during the report period.
Turnover composition
In RMB
This report period Same period last year
Proportion in Proportion in YOY change (%)
Amount operating costs Amount operating costs
(%) (%)
Total turnover 1,551,057,757.28 100% 1,598,286,450.04 100% -2.95%
Industry
Metal production 1,199,918,537.87 77.36% 1,184,916,485.51 74.14% 1.27%
Railroad industry 255,530,920.39 16.47% 316,923,499.00 19.83% -19.37%
Commercial
services
New energy
industry
Others 7,401,059.75 0.48% 7,703,010.96 0.48% -3.92%
Product
Curtain wall
system and new 1,199,918,537.87 77.36% 1,184,916,485.51 74.14% 1.27%
materials
Subway screen
door and service
Real estate rental
and sales and 80,450,997.96 5.19% 79,515,183.06 4.98% 1.18%
property services
PV power
generation 7,756,241.31 0.50% 9,228,271.51 0.58% -15.95%
products
Others 7,401,059.75 0.48% 7,703,010.96 0.48% -3.92%
District
In China 1,272,446,026.69 82.04% 1,459,381,780.51 91.31% -12.81%
Out of China 278,611,730.59 17.96% 138,904,669.53 8.69% 100.58%
Interim Report 2026 of China Fangda Group Co., Ltd.
Industries, Products, or Regions Accounting for More Than 10% of the Company's Operating Revenue or Operating Profit
? Applicable □ Inapplicable
In RMB
Year-on-year
Year-on-year Year-on-year
change in
Turnover Operating cost Gross margin change in change in gross
operating
operating costs margin
revenue
Industry
Metal 1,199,918,537. 1,060,944,155.
production 87 94
Railroad
industry
Commercial
services
Product
Curtain wall
system and new 11.58% 1.27% 0.55% 0.62%
materials
Subway screen
door and 255,530,920.39 176,959,630.39 30.75% -19.37% -21.80% 2.15%
service
Real estate
rental and sales
and property
services
District
In China 15.95% -12.81% -12.48% -0.32%
Out of China 278,611,730.59 194,479,145.97 30.20% 100.58% 127.24% -8.19%
Main business statistics adjusted in the recent one year with the statistics criteria adjusted in the report period
□ Applicable ? Inapplicable
IV. Non-core business analysis
? Applicable □ Inapplicable
In RMB
Whether
Amount Profit percentage Reason
continuous
Investment income -739,746.64 -1.15% No
Primarily represents fair value
Gain/loss caused by
changes in fair value
investment properties.
Reversal of impairment provisions for
Assets impairment 7,490,908.24 11.69% No
contract assets.
Non-operating revenue 329,521.20 0.51% No
Non-business expenses 370,452.58 0.58% No
Primarily due to the provision for bad
Credit impairment loss -11,064,393.24 -17.26% No
debts on accounts receivable.
Interim Report 2026 of China Fangda Group Co., Ltd.
V. Assets and Liabilities
In RMB
End of the report period End of last year
Proportion in Proportion in Change (% ) Notes
Amount Amount
total assets total assets
Monetary 1,307,061,214. 1,401,292,102.
capital 67 72
Account
receivable
Contract assets 15.49% 15.89% -0.40%
Inventory 677,752,245.52 5.52% 685,058,418.56 5.45% 0.07%
Investment real 5,598,103,817. 5,548,371,426.
estate 83 50
Long-term
share equity 32,953,385.52 0.27% 32,988,644.63 0.26% 0.01%
investment
Fixed assets 927,689,776.20 7.56% 940,980,113.90 7.48% 0.08%
Construction in
process
Use right assets 16,870,707.96 0.14% 13,470,006.41 0.11% 0.03%
Short-term 1,509,124,058. 1,202,846,497.
loans 02 03
Contract
liabilities
Long-term 1,230,000,000. 1,290,000,000.
loans 00 00
Lease liabilities 10,078,800.17 0.08% 8,979,546.87 0.07% 0.01%
Transactional
financial assets
Notes
receivable
Prepayment 60,424,946.92 0.49% 20,407,968.16 0.16% 0.33%
Notes
payable
Employees'
wage payable
Taxes
payable
Non-current
liabilities due in 104,661,339.49 0.85% 379,089,194.66 3.01% -2.16%
□ Applicable ? Inapplicable
Interim Report 2026 of China Fangda Group Co., Ltd.
? Applicable □ Inapplicable
In RMB
Accumulati
ve changes
Gain/loss in fair Amount
Impairment Amount
Opening caused by value purchased Other Closing
Item provided in sold in the
amount changes in accounting in the change amount
the period period
fair value into the period
income
account
Financial
assets
Transaction
al financial
assets 31,505,968.
(excluding 50
derivative
financial
assets)
Derivative 1,459,950.0
financial 0
assets
Receivable 0.00
financing
non-current 6,516,131.6 - 6,010,966.4
financial 3 722,459.92 3
assets
Subtotal 217,294.72 0.00 0.00 0.00 0.00
Investment 5,548,371,4 2,196,417.2 216,172,59 62,791,141. 15,255,167. 5,598,103,8
real estate 26.50 9 7.57 98 94 17.83
Total 0.00
Financial 4,250,400.0
liabilities 0
Details of other changes: Other changes in other non-current financial assets amounting to RMB -722,459.92 represent the impact
of the return of corresponding equity value due to capital reduction by investee companies.
Major changes in the assets measurement property of the Company in the report period
□ Yes ? No
Book value on June 30,
Item Reason
Monetary capital 645,799,436.10 Various deposits, judicially frozen funds, etc.
Interim Report 2026 of China Fangda Group Co., Ltd.
Notes receivable 16,530,347.51 Bills endorsed or discounted but not yet due
Account receivable 36,256,465.60 Loan by pledge
Fixed assets 422,580,043.08 Loan by pledge
Intangible assets 22,487,074.11 Loan by pledge
Investment real estate 3,349,490,698.00 Loan by pledge
Long-term Equity
Investments (Parent
held by the Company
Company)
Total 4,493,144,064.40
VI. Investment
□ Applicable ? Inapplicable
□ Applicable ? Inapplicable
□ Applicable ? Inapplicable
(1) Securities investment
□ Applicable ? Inapplicable
The Company made no investment in securities in the report period
? Applicable □ Inapplicable
? Applicable □ Inapplicable
In RMB10,000
Accumulati Proportion
ve changes of closing
Gain/loss in fair investment
Initial Amount
Opening caused by value Amount in Closing amount in
Type investment sold in this
amount changes in accounting this period amount the closing
amount period
fair value into the net assets
income in the
account report
Interim Report 2026 of China Fangda Group Co., Ltd.
period
Aluminum
futures 3,851.06 3,851.06 -571.04 -425.04 10,858.8 6,403.96 8,305.89 1.50%
contract
Forward
foreign
exchange
contract
Total 3,851.06 3,851.06 -564.21 -415.48 26,759.49 15,484.23 15,126.31 2.73%
Accounting
policies
and
specific
accounting
principles
of hedging
business
during the
The aluminum futures and forward foreign exchange businesses of the Company meet the applicable conditions of
reporting
hedge accounting specified in the accounting standards and are applicable to hedge accounting, which are classified
period, as
as cash flow hedging. The corresponding accounting policies and accounting principles have not changed from the
well as
previous reporting period.
whether
there are
significant
changes
compared
with the
previous
reporting
period
Description
of actual
profit and The actual income of the aluminum futures hedging instrument and the spot value change of the hedged aluminum
loss during ingot in the reporting period is RMB-828,000; The gains and losses arising from forward foreign exchange hedging
the instruments offset the value changes of the hedged items due to exchange rate fluctuations.
reporting
period
Description
The profit and loss generated by the company's hedging instrument can offset the value change of the hedged item,
of hedging
and the hedging effect of the hedging business is good.
effect
Capital
Self-owned fund
source
Risk
analysis
and control
The aluminum futures hedging and foreign exchange derivatives trading businesses carried out by the Company are
measures
derivative investment businesses. The derivative investment business carried out by the Company follows the basic
for the
principle of locking the price and exchange rate of raw materials, does not carry out speculative trading operations,
derivative
and carries out strict risk control when signing hedging contracts and closing positions. The Company has
holding in
established and implemented the "Derivatives Investment Business Management Measures" and "Commodity
the report
Futures Hedging Business Internal Control and Risk Management System". It has made clear regulations on the
period
approval authority, business management, risk management, information disclosure and file management of
(including
derivatives trading business, which can effectively control the risk of the Company's derivatives holding positions.
without
limitation
market,
Interim Report 2026 of China Fangda Group Co., Ltd.
liquidity,
credit,
operation
and legal
risks)
Changes in
the market
price or fair
value of the
derivative
in the
report
period, the
analysis of
the
Fair value of derivatives are measured at open prices in the open market
derivative's
fair value
should
disclose the
method
used and
related
assumption
s and
parameters.
Lawsuit (if
None
any)
Disclosure
date of
derivative
investment
April 08, 2026
approval by
the Board
of
Directors
□ Applicable ? Inapplicable
During the reporting period, there was no derivative investment for the purpose of speculation.
□ Applicable ? Inapplicable
The Company used no raised capital in the report period.
VII. Major assets and equity sales
□ Applicable ? Inapplicable
The Company sold no assets in the report period.
Interim Report 2026 of China Fangda Group Co., Ltd.
□ Applicable ? Inapplicable
VIII. Analysis of major joint stock companies
? Applicable □ Inapplicable
Major subsidiaries and joint stock companies affecting more than 10% of the Company's net profit
In RMB
Main Registered Operation
Company Type Total assets Net assets Turnover Net profit
business capital profit
Fangda
Curtain
Constructio -
Subsidiarie wall system 600,000,00 4,783,572,3 1,561,101,4 966,227,72
n 5,922,211.5 805,287.72
s and 0.00 60.92 83.90 3.74
Technolog 4
materials
y
Fangda
Curtain - -
Intelligent Subsidiarie 250,000,00 651,673,99 205,601,48 135,740,12
wall system 9,346,457.2 7,480,107.6
Manufactur s 0.00 6.61 0.30 8.45
materials 2 0
ing
Subway
Fangda Subsidiarie 105,000,00 1,071,489,0 464,466,18 255,530,92 40,178,877. 35,219,577.
screen door
Zhiyuan s 0.00 78.51 6.24 0.39 44 40
and service
Fangda Subsidiarie Real estate 200,000,00 5,362,964,4 2,460,831,7 41,934,842. 6,045,498.0 4,433,616.4
Property s sales 0.00 04.58 65.95 85 7 3
Fangda
Property
Property Subsidiarie 10,000,000. 109,487,38 90,267,321. 35,229,999. 12,612,272. 9,325,105.0
Manageme
Manageme s 00 2.54 43 92 13 6
nt Service
nt
Acquisition and disposal of subsidiaries in the report period
□ Applicable ? Inapplicable
Major joint-stock companies
During the Reporting Period, Jiangxi Intelligent Manufacturing Company recorded operating revenue of RMB
main business profit of RMB -9,736,239.94. During the Reporting Period, Zhiyuan Technology Company recorded operating
revenue of RMB 255,530,920.39, including main business revenue of RMB 252,491,598.11; its operating profit was RMB
Company recorded operating revenue of RMB 35,229,999.92, all of which was main business revenue; its operating profit was
RMB 12,612,272.13, all of which was main business profit.
IX. Structural entities controlled by the Company
□ Applicable ? Inapplicable
X. Risks facing the Company and measures
Interim Report 2026 of China Fangda Group Co., Ltd.
The Company's core business is closely correlated with macroeconomic trends and industry policy orientations, making its
overall operating performance susceptible to fluctuations in the external macro environment. As the Company continues to expand
its overseas business footprint, should domestic and global macroeconomic recovery fall short of expectations or infrastructure
investment weaken, compounded by intertwined uncertainties such as sustained geopolitical tensions and frequent regional
conflicts, downstream sectors including rail transit equipment and architectural curtain walls may face demand contraction or
intensified competition for existing market share. This could adversely affect the Company's order acquisition, profitability, and
operational stability.
To address these risks, the Company will continuously monitor domestic and global economic trends, industrial policy
adjustments, and shifts in the international political landscape to proactively identify risk signals and flexibly adjust operational
strategies. Meanwhile, adhering to a technology-driven development path, the Company will accelerate digital and intelligent
transformation, deepen the application of artificial intelligence (AI) across R&D design, production operations, and corporate
management, continuously forge core competitive advantages, enhance operational resilience and risk resistance, and ensure stable
and sustainable development.
The Company's core businesses cover rail transit platform screen door systems and high-end architectural curtain walls,
operating in highly market-oriented industries with increasingly fierce competition. In the rail transit platform screen door sector,
the continuous enhancement of technical capabilities among leading domestic manufacturers has strengthened overall industry
supply capacity, intensifying market competition. The architectural curtain wall industry is characterized by low market
concentration and intense competition for high-end projects, placing the Company under pressure to maintain and expand its
market share amid competition for existing projects. Should the Company fail to sustain leadership in product iteration, customer
service, and brand influence, or fail to effectively respond to challenges from new entrants and alternative technologies, its market
position and profitability could be materially affected.
To mitigate these risks, the Company will adhere to an innovation-driven development strategy, continuously increase R&D
investment, promote product performance enhancement and cost optimization, and strengthen the differentiated competitiveness of
core products. It will deepen cooperation with universities and research institutions to accelerate the industrialization of new
technologies and processes. Upholding the philosophy of high-quality and high-efficiency development, the Company will
continuously optimize internal management processes to improve operational efficiency and responsiveness. Meanwhile, building
on deep cultivation of the domestic market, the Company will actively seize market opportunities arising from infrastructure
development in Belt and Road partner countries, step up overseas market expansion, foster a business pattern where domestic and
international circulations reinforce each other, enhance overall risk resistance, and continuously consolidate and expand its
competitive edge in the industry.
The Company's production and operations are susceptible to macroeconomic fluctuations and changes in downstream market
demand. Additionally, factors such as price volatility of key raw materials and rising labor costs directly impact product costs,
introducing uncertainty to profit stability and operational continuity.
To this end, the Company will adopt a combination of measures to address the aforementioned risks: locking in raw material
cost ranges through futures hedging instruments, and flexibly adjusting procurement pacing and inventory strategies based on
market trend forecasts to reasonably control procurement costs; continuously optimizing the supplier management system to
strengthen strategic partnerships and bargaining power; and accelerating automation and intelligent upgrades in production
processes, optimizing manufacturing workflows, reducing resource waste, and improving per capita productivity. Meanwhile, the
Company will advance the development of a digital construction system, actively promote the application of new technologies and
processes, and strengthen multi-skill training for frontline employees. On the premise of ensuring safe production, the Company
will continuously improve product quality and delivery efficiency, thereby enhancing the overall risk resilience of production and
operations.
Interim Report 2026 of China Fangda Group Co., Ltd.
As the Company continues to expand its operational scale and extend its overseas business footprint, the complexity of
group-level cross-regional and cross-cultural management has increased accordingly, posing greater challenges in organizational
coordination, resource allocation, and internal control. Concurrently, capital market laws, regulations, and regulatory requirements
are becoming increasingly stringent, imposing higher standards on the effectiveness of the corporate governance system as well as
the timeliness and accuracy of information disclosure.
To address these risks, the Company will deepen management reform, continuously optimize its organizational structure and
division of responsibilities, improve internal control systems, and strengthen full-process risk management to ensure compliant
and orderly operations across all businesses. The Company will also strengthen talent pipeline development, focusing on attracting
and cultivating versatile professionals with international perspectives, cross-cultural management capabilities, and specialized
technical expertise, thereby optimizing talent structure and solidifying the management foundation. Furthermore, the Company
will continuously enhance corporate governance, improve scientific decision-making mechanisms, and boost organizational
effectiveness and execution capability, providing robust support for achieving high-quality and sustainable development.
XI. Formulation and Implementation of the Market Capitalization Management System
and Valuation Enhancement Plan
Has the Company formulated a market value management system?
□ Yes ? No
Has the Company disclosed a valuation enhancement plan?
? Yes □ No
On April 22, 2025, the Company disclosed the Valuation Enhancement Plan of Fangda Group Co., Ltd. on CNINFO
(http://www.cninfo.com.cn), outlining specific measures formulated to enhance valuation. Closely aligned with the Company's
actual conditions and development strategy, this plan is conducive to improving operating quality and investment value, enhancing
investor returns, and promoting long-term stable development.
XII. Implementation of the "Dual Enhancement of Quality and Returns" Action Plan
Has the Company disclosed the announcement of the "Quality and Return Double Enhancement" action plan?
? Yes □ No
In the first half of 2026, the Company thoroughly implemented the "Dual Enhancement of Quality and Returns" special
action plan, making solid progress in areas including operating quality, technological innovation, and governance standardization,
and achieving phased results.
(I) Focusing on Core Business Cultivation to Steadily Improve Operating Quality
The Company continued to promote the synergistic development of its two core businesses—intelligent rail transit platform
screen doors and high-end smart curtain walls—and achieved significant results in its global layout. During the Reporting Period,
the high-speed railway platform screen door business transitioned from benchmark demonstration to batch replication,
successively winning bids for Shenzhen North Station and Humen High-Speed Railway Station projects, making the Company the
first domestic manufacturer to achieve full coverage of both full-height and half-height systems. The curtain wall business also
recorded outstanding progress in overseas market expansion, with orders from Australia and key Middle Eastern regions
increasing significantly. In terms of financial performance, net profit attributable to owners of the parent company reached RMB
turned positive from negative year-on-year, increasing by RMB 274 million. Newly signed overseas orders accounted for 56.03%
Interim Report 2026 of China Fangda Group Co., Ltd.
of total new orders, and order backlog at period-end stood at RMB 6,460,882,300, laying a solid foundation for subsequent
earnings realization.
(II) Strengthening Innovation-Driven Development and Empowering New Quality Productive Forces with AI
The Company continued to increase R&D investment and deepen the integration of AI technology with its core businesses. In
the rail transit sector, the Company built the industry's first intelligent robotic assembly production line. Multiple achievements,
including AI visual recognition and an AI-powered condition monitoring system for intelligent O&M, have been successfully
deployed. The national standard for platform screen doors, led by the Company, officially came into effect in May 2026. In the
smart curtain wall sector, an AI Research and Application Promotion Team was established, and the Company deepened
cooperation with Huawei Cloud to upgrade its MES system. Its independently developed "Vertical Offset Curtain Wall Finishing
System" and "Super-Large High-Vanadium Cable Curtain Wall Technology" were selected as "Shenzhen Enterprise Innovation
(China) Records," while its "Ultra-High Suspended Curtain Wall Construction Technology" was named among the Top 10
Innovative Applications in the curtain wall industry. With cumulative patented technologies reaching 721, technological
innovation has significantly driven industrial upgrading.
(III) Improving the Governance System to Enhance Standardized Operations
During the Reporting Period, the Company continuously improved its corporate governance structure, strengthened
accountability constraints on "key minorities" including the controlling shareholder, directors, and senior management, and refined
the mechanism linking compensation to operating performance. Independent directors fully exercised their oversight and checks-
and-balances functions to effectively safeguard the legitimate rights and interests of minority investors, ensuring the standardized
and effective operation of the governance system.
(IV) Enhancing Information Disclosure Quality to Consolidate the Foundation for Sustainable Development
The Company has consistently fulfilled its information disclosure obligations in strict accordance with the principles of
"truthfulness, accuracy, completeness, timeliness, and fairness," continuously improving the precision and transparency of
disclosures. Its information disclosure work has received the highest Grade A rating from the Shenzhen Stock Exchange for four
consecutive years. Meanwhile, the Company continued to strengthen investor relations management by diversifying
communication channels. Through earnings briefings, investor site visits, hotline calls, and the Interactive Easy platform, the
Company proactively listened to investor concerns, earnestly addressed market inquiries, and actively collected and analyzed
feedback from various parties. These efforts have enhanced the market's understanding and recognition of the Company's
investment value and effectively bolstered investor confidence.
Looking ahead, the Company will continue to thoroughly implement high-quality development requirements, promoting
effective improvement in quality and reasonable growth in scale. It remains committed to delivering sustained and stable returns to
investors, providing a platform for employees to realize their value and achieve career growth, and actively fulfilling social
responsibilities to contribute social value. The Company will further advance digital and intelligent transformation to enhance core
competitiveness and intrinsic value, make every effort to drive high-quality, sound, and sustainable development, and effectively
deliver on the "Dual Enhancement of Quality and Returns," thereby making positive contributions to the stable and healthy
development of the capital market.
Interim Report 2026 of China Fangda Group Co., Ltd.
Chapter IV Corporate Governance, Environment, and Society
I. Changes in Directors and Senior Management of the Company
? Applicable □ Inapplicable
Name Job Type Date Reason
Cao Zhongxiong Independent director Leaving office 28 April 2026 Re-election
Guo Wanda Independent director Elected 28 April 2026 Re-election
II. Profit Distribution and Reserve Capitalization in the Report Period
□ Applicable ? Inapplicable
The Company distributed no cash dividends or bonus shares and has no reserve capitalization plan.
III. Share Incentive Schemes, Staff Shareholding Program or Other Incentive Plans
□ Applicable ? Inapplicable
There are no share incentive schemes, staff shareholding program or other incentive plans in the report period
IV. Disclosure of Environmental Information
Whether the listed company and its major subsidiaries are included in the list of enterprises required by law to disclose
environmental information
□ Yes ? No
V. Social Responsibility
While creating economic value, the Company actively fulfills its corporate social responsibilities, strives to give back to
society, and has carried out a series of public welfare and charitable initiatives, contributing to the realization of the national
strategies for rural revitalization and common prosperity. The Company has set a positive example in ecological protection and
social development, demonstrating the sense of responsibility expected of an industry leader. The Company has successively
implemented industrial assistance programs in Guangdong, Shaanxi, Guizhou, Jiangxi, and Tibet, adapting measures to local
conditions to help underdeveloped regions cultivate cash crops such as tea tree mushrooms and lilies. It has supported rural
collective aquaculture and livestock projects, and constructed greenhouse photovoltaic power stations and distributed photovoltaic
power stations as "self-sustaining" rural industrial projects. These efforts have fostered new drivers for rural economic
development and contributed to building beautiful countryside areas in the new era that feature thriving industries, pleasant living
environments, civilized rural customs, effective governance, and prosperous livelihoods, achieving positive social outcomes and
earning widespread acclaim from all sectors of society. The Company has been honored as an "Outstanding Enterprise in Fulfilling
Social Responsibilities" for multiple consecutive years.
Interim Report 2026 of China Fangda Group Co., Ltd.
Chapter 5 Significant Events
I. Commitments that have been fulfilled and not fulfilled by actual controller, shareholders,
related parties, acquirers of the Company
□ Applicable ? Inapplicable
There is no commitment that has not been fulfilled by actual controller, shareholders, related parties, acquirers of the Company
II. Non-operating capital use by the controlling shareholder or related parties in the
reporting term
□ Applicable ? Inapplicable
The controlling shareholder and its affiliates occupied no capital for non-operating purpose of the Company during the report
period.
III. Incompliant external guarantee
□ Applicable ? Inapplicable
The Company made no incompliant external guarantee in the report period.
IV. Engaging and dismissing of CPA
Whether the interim financial report is audited
□ Yes ? No
The interim report for H1 2015 has not been audited.
V. Statement of the Board on the “non-standard auditors' report” issued by the CPA on the
current report period
□ Applicable ? Inapplicable
VI. Statement of the Board of Directors on the Non-standard Auditor's Report for H1 2014
□ Applicable ? Inapplicable
VII. Bankruptcy and capital reorganizing
□ Applicable ? Inapplicable
The Company has no bankruptcy or reorganization events in the report period.
VIII. Lawsuit
Significant lawsuit and arbitration
□ Applicable ? Inapplicable
The Company has no significant lawsuit or arbitration affair in the report period.
Interim Report 2026 of China Fangda Group Co., Ltd.
Other lawsuit
? Applicable □ Inapplicable
Index
Whether Progress for
Enforcement Date
Amount (in estimated of infor
Basic information of Litigation (arbitration) of litigation of
RMB10,000 liabilities litigation matio
litigation (arbitration) hearing results and impact (arbitration) disclo
) are (arbitratio n
judgment sure
formed n) disclo
sure
Some cases are under trial
and are not expected to
Summary of matters
have a significant impact
in which the
Filing, on the Company's Some cases
subsidiaries as the
trial, or operations and financial are in the
plaintiff fail to meet 51,610.71 No
execution condition; some judgments execution
the disclosure
phases have taken effect, with the phase
standards of major
final actual impact
litigation (arbitration)
dependent on the execution
results.
Summary of matters
The case has not been
where the Company
Under closed yet, and it is not
and its subsidiaries as
trial or expected to have a
defendants fail to 3,090.43 No Inapplicable
arbitratio significant impact on the
meet the disclosure
n company's operation and
standards of major
financial status
litigation (arbitration)
IX. Punishment and rectification
□ Applicable ? Inapplicable
The Company received no penalty and made no correction in the report period.
X. Credibility of the Company, controlling shareholder and actual controller
? Applicable □ Inapplicable
The Company and its controlling shareholders and actual controllers do not fail to perform the effective judgment of the court, and
the debts with a large amount are not paid off when due.
XI. Material related transactions
□ Applicable ? Inapplicable
The Company made no related transaction related to daily operating in the report period.
□ Applicable ? Inapplicable
The Company made no related transaction of assets or equity requisition and sales in the report period.
Interim Report 2026 of China Fangda Group Co., Ltd.
□ Applicable ? Inapplicable
The Company made no related transaction of joint external investment in the report period.
□ Applicable ? Inapplicable
The Company had no related debt in the report period.
□ Applicable ? Inapplicable
There is no deposit, loan, credit or other financial business between the company and the related financial company.
□ Applicable ? Inapplicable
There is no deposit, loan, credit or other financial business between the financial company controlled by the company and its
related parties.
□ Applicable ? Inapplicable
The Company has no other significant related transaction in the report period.
XII. Significant contracts and performance
(1) Asset entrusting
□ Applicable ? Inapplicable
The Company made no custody in the report period.
(2) Contracting
□ Applicable ? Inapplicable
The Company made no contract in the report period
(3) Leasing
□ Applicable ? Inapplicable
There are no significant leasing situations during the reporting period.
? Applicable □ Inapplicable
Interim Report 2026 of China Fangda Group Co., Ltd.
In RMB10,000
External guarantees made by the Company and subsidiaries (exclude those made for subsidiaries)
Actual
Guarant
Date of Guarante amount Type of Counter
ee Actual Collatera Complet Related
disclosur e of guarante guarante Term
provided date l (if any) ed or not party
e amount guarante e e (if any)
to
e
None
Total of external Total of external
guarantee approved guarantee actually
in the report term occurred in the
(A1) report term (A2)
Total balance of
Total of external
external guarantees
guarantee approved
as of end of report
Reporting Period
term (A3)
(A4)
Guarantee provided to subsidiaries
Actual
Guarant
Date of Guarante amount Type of Counter
ee Actual Collatera Complet Related
disclosur e of guarante guarante Term
provided date l (if any) ed or not party
e amount guarante e e (if any)
to
e
since
engage
Fangda Joint and of
Construc Decemb several contract
April 22,
tion 133,000. er 23, 51,751.8 liability None None to 3 No Yes
Technol 00 2025 2 guarante years
ogy e upon
due of
debt
since
engage
Fangda Joint and of
Construc several contract
April 08, April 28,
tion 35,000.0 20,996.6 liability None None to 3 No Yes
Technol 0 3 guarante years
ogy e upon
due of
debt
since
engage
Fangda Joint and of
Construc Decemb several contract
April 22,
tion 20,000.0 er 09, 10,860.9 liability None None to 3 No Yes
Technol 0 2025 1 guarante years
ogy e upon
due of
debt
since
engage
Fangda Joint and of
Construc several contract
April 22, July 16,
tion 50,000.0 24,625.3 liability None None to 3 No Yes
Technol 0 6 guarante years
ogy e upon
due of
debt
Fangda April 22, January Joint and None None since No Yes
Interim Report 2026 of China Fangda Group Co., Ltd.
Construc 2025 39,000.0 21, 2026 19,152.1 several engage
tion 0 9 liability of
Technol guarante contract
ogy e to 3
years
upon
due of
debt
since
engage
Fangda Joint and of
Construc several contract
April 22, July 01,
tion 15,000.0 15,000.0 liability None None to 3 No Yes
Technol 0 0 guarante years
ogy e upon
due of
debt
since
engage
Fangda Joint and of
Construc several contract
April 22, January
tion 48,000.0 36,189.8 liability None None to 3 No Yes
Technol 0 1 guarante years
ogy e upon
due of
debt
since
engage
Fangda Joint and of
Construc Decemb several contract
April 02,
tion 60,000.0 er 19, 30,000.0 liability None None to 3 No Yes
Technol 0 2024 0 guarante years
ogy e upon
due of
debt
since
engage
Fangda Joint and of
Construc Novemb several contract
April 22,
tion 11,150.0 er 17, - liability None None to 3 No Yes
Technol 0 2025 guarante years
ogy e upon
due of
debt
since
engage
Fangda Joint and of
Construc several contract
April 22, January
tion 20,000.0 liability None None to 3 No Yes
Technol 0 guarante years
ogy e upon
due of
debt
since
engage
Fangda Joint and of
Construc several contract
April 22, August
tion 40,000.0 liability None None to 3 No Yes
Technol 0 guarante years
ogy e upon
due of
debt
Fangda Joint and since
Construc Decemb several engage
April 22,
tion 25,000.0 er 25, - liability None None of No Yes
Technol 0 2025 guarante contract
ogy e to 3
Interim Report 2026 of China Fangda Group Co., Ltd.
years
upon
due of
debt
since
engage
Joint and of
several contract
Fangda April 08, June 02,
Zhiyuan 2026 2026
e upon
due of
debt
since
engage
Joint and of
several contract
Fangda April 08, April 28,
Zhiyuan 2026 2026 6,197.81
e upon
due of
debt
since
engage
Joint and of
Decemb several contract
Fangda April 22,
Zhiyuan 2025 1,142.08
e upon
due of
debt
since
engage
Joint and of
several contract
Fangda April 22, July 16,
Zhiyuan 2025 2025 4,228.43
e upon
due of
debt
since
engage
Joint and of
several contract
Fangda April 22, July 01,
Zhiyuan 2025 2025 2,174.00
e upon
due of
debt
since
engage
Joint and of
several contract
Fangda April 22, January
Zhiyuan 2025 06, 2026 6,064.48
e upon
due of
debt
since
engage
Joint and of
Novemb several contract
Fangda April 22,
Zhiyuan 2025 4,160.13
e upon
due of
debt
Interim Report 2026 of China Fangda Group Co., Ltd.
since
engage
Joint and of
several contract
Fangda April 22, January
Zhiyuan 2025 27, 2026
e upon
due of
debt
since
engage
Joint and of
Novemb several contract
Fangda April 22,
Zhiyuan 2025 3,000.00
e upon
due of
debt
since
engage
Joint and of
several contract
Fangda April 08, April 28,
Yunzhu 2026 2026
guarante years
e upon
due of
debt
since
engage
Joint and of
several contract
Fangda April 08, May 27,
Yunzhu 2026 1,000.00 2026
guarante years
e upon
due of
debt
since
engage
Joint and of
Fangda several contract
April 02, February
New liability None None to 3 No Yes
Material guarante years
e upon
due of
debt
since
engage
Joint and of
Fangda
several contract
Donggu April 22, July 01,
liability None None to 3 No Yes
an New 2025 5,000.00 2025 3,760.00
guarante years
Material
e upon
due of
debt
since
engage
Joint and of
Decemb several contract
Fangda April 02,
er 23, 110,000. 106,000. liability None None to 3 No Yes
Property 2025
e upon
due of
debt
Joint and since
Fangda April 22, June 30, several engage
None None No Yes
Zhijian 2025 7,000.00 2025 6,317.83 liability of
guarante contract
Interim Report 2026 of China Fangda Group Co., Ltd.
e to 3
years
upon
due of
debt
since
engage
Fangda Joint and of
Intellige Decemb several contract
February
nt er 23, 30,000.0 26,500.0 liability None None to 3 No Yes
Manufac 2023 0 0 guarante years
turing e upon
due of
debt
From the
date the
letter of
Joint and guarante
Decemb several e is
Fangda February
er 23, 31,896.0 31,896.0 liability None None issued No Yes
Zhiyuan 17, 2024
e completi
on of the
project
contract
From the
date the
letter of
Joint and guarante
Decemb several e is
Fangda February
er 23, 24,885.1 24,885.1 liability None None issued No Yes
Zhiyuan 17, 2024
e completi
on of the
project
contract
Total of guarantee to Total of guarantee to
subsidiaries subsidiaries actually
approved in the occurred in the
report term (B1) report term (B2)
Total balance of
Total of guarantee to
guarantees provided
subsidiaries
approved as of the
end of the Reporting
report term (B3)
Period (B4)
Guarantee provided to subsidiaries
Actual
Guarant
Date of Guarante amount Type of Counter
ee Actual Collatera Complet Related
disclosur e of guarante guarante Term
provided date l (if any) ed or not party
e amount guarante e e (if any)
to
e
None
Total of guarantee to Total of guarantee to
subsidiaries subsidiaries actually
approved in the occurred in the
report term (C1) report term (C2)
Total of guarantee to Total balance of
subsidiaries guarantees provided
approved as of the to subsidiaries at the
report term (C3) end of the Reporting
Interim Report 2026 of China Fangda Group Co., Ltd.
Period (C4)
Total of guarantee provided by the Company (total of the above three)
Total of guarantee Total of guarantee
approved in the occurred in the
report term report term
(A1+B1+C1) (A2+B2+C2)
Total of guarantee Total balance of all
approved as of end guarantees at the end
of report term of the Reporting
(A3+B3+C3) Period (A4+B4+C4)
Ratio of total outstanding guarantee balance
(i.e., A4 + B4 + C4) to the Company's net 83.59%
assets
Including:
Guarantees provided to the shareholders,
substantial controllers and the related parties 0
(D)
Guarantee provided directly or indirectly to
objects with over 70% of liability on asset 3,760
ratio (E)
Amount of guarantee over 50% of the net
asset (F)
Total of the above 3 (D+E+F) 186,317.32
For the unexpired guarantee contract, the
guarantee liability has occurred during the
reporting period or there is evidence that it is None
possible to bear joint and several repayment
liability (if any)
Statement of external guarantees violating
None
the procedure (if any)
Note of compound guarantee
None
The Company's new guarantees for subsidiaries in the second quarter of 2026 are as follows:
Guarantee Amount Guarantee
No. Guarantor Creditor (RMB10,000) Actual date Details
China Everbright Bank Co., Ltd., Shenzhen
Branch
China Construction Bank Corporation,
Shenzhen Branch
? Applicable □ Inapplicable
In RMB10,000
Interim Report 2026 of China Fangda Group Co., Ltd.
Outstanding balance of
Product category Risk characteristics entrusted wealth management Due balance to be recovered
during the reporting period
Bank financial products Low risk 3,111.13 0
Specific circumstances where the Company, as a sole principal, entrusts financial institutions to conduct asset management or
invests in high-risk entrusted wealth management products with lower safety and poorer liquidity
□ Applicable ? Inapplicable
□ Applicable ? Inapplicable
The Company entered into no other significant contract in the report.
XIII. Record of Research Visits, Communications, and Interviews During the Reporting
Period
? Applicable □ Inapplicable
Main content
involved and Disclosure of
Time/date Place Way Visitor Visitor
materials information
provided
Investors Investor
Online participating in Relationship
Business and
Network communication the Company's Record Form
platform on online 2025 on
development
platforms Performance www.cninfo.co
Presentation m.cn
XIV. Description of Other Significant Matters
□ Applicable ? Inapplicable
There are no other significant matters requiring explanation during the reporting period.
XV. Significant Matters of Subsidiaries
□ Applicable ? Inapplicable
Interim Report 2026 of China Fangda Group Co., Ltd.
Chapter VI Changes in Share Capital and Shareholders
I. Changes in shares
In share
Before the change Change (+,-) After the change
Issued Transferr
Proportio Bonus Proportio
Quantity new ed from Others Subtotal Quantity
n shares n
shares reserves
I. Shares
with trade
restriction 3,861,043 0.36% 0 0 0 0 0 3,861,043 0.36%
condition
s
State-
owned
shares
State-
owned
legal
person
shares
Other
domestic
shares
Inclu
ding:
Shares
held by
domestic
legal
persons
Dom
estic
natural 3,861,043 0.36% 0 0 0 0 0 3,861,043 0.36%
person
shares
Shares
held by
foreign
investors
Inclu
ding:
Shares
held by
Interim Report 2026 of China Fangda Group Co., Ltd.
foreign
legal
persons
Dom
estic
natural
person
shares
II.
Unrestrict 99.64% 0 0 0 0 0 99.64%
,184 ,184
ed shares
Common 675,854,4 675,854,4
shares in 29 29
RMB
Foreign
shares in 36.70% 0 0 0 0 0 36.70%
domestic
market
Foreign
shares in
overseas
market
Others
III. Total
of capital 100.00% 0 0 0 0 0 100.00%
,227 ,227
shares
Reasons
□ Applicable ? Inapplicable
Approval of the change
□ Applicable ? Inapplicable
Share transfer
□ Applicable ? Inapplicable
Progress in the implementation of share repurchase
? Applicable □ Inapplicable
approved the Proposal on Repurchasing A-Shares via Centralized Bidding. The Board agreed that the Company use its own funds
to repurchase A-shares through centralized bidding for the purpose of implementing an equity incentive plan. For details, please
refer to the relevant announcement disclosed by the Company on June 8, 2026, in China Securities Journal, Shanghai Securities
News, Securities Times, Securities Daily, and on CNINFO (http://www.cninfo.com.cn).
account. For details, please refer to the relevant announcement disclosed by the Company on June 9, 2026, on CNINFO
(http://www.cninfo.com.cn). During the repurchase period, the Company disclosed the progress of the repurchase in accordance
with relevant regulations.
Interim Report 2026 of China Fangda Group Co., Ltd.
securities repurchase account, representing 1.54% of the total share capital as of the disclosure date of this report. The highest
transaction price was RMB 3.76/share and the lowest was RMB 3.33/share, with a total transaction amount of RMB 59,938,011.28
(including transaction fees). The implementation of this repurchase plan has now been completed. The actual repurchase period
was from June 8, 2026, to June 26, 2026. This repurchase complies with the Company's share repurchase plan and applicable laws
and regulations. For details, please refer to the relevant announcement disclosed by the Company on June 27, 2026, on CNINFO
(http://www.cninfo.com.cn).
Progress in the implementation of the reduction of shareholding shares by means of centralized bidding
□ Applicable ? Inapplicable
Impacts on financial indicators including basic and diluted earnings per share, net assets per share attributable to common
shareholders of the Company in the most recent year and period
□ Applicable ? Inapplicable
Others that need to be disclosed as required by the securities supervisor
□ Applicable ? Inapplicable
□ Applicable ? Inapplicable
II. Share placing and listing
□ Applicable ? Inapplicable
III. Shareholders and shareholding
In share
Number of shareholders Number of shareholders of preferred
of common shares at the 44,124 stocks of which voting rights recovered 0
end of the report period in the report period (if any)
Shareholdings of shareholders holding more than 5% or the top 10 shareholders (excluding shares lent through refinancing)
Number of Pledge, marking or
Amount of
shares held Change in freezing
Shareholdi shares
Name of Nature of at the end the Conditional
ng without
shareholder shareholder of the reporting shares Share
percentage sales Quantity
reporting period status
restriction
period
Shenzhen
Banglin Domestic
Technologi non-state 119,332,84 Inapplicabl
es legal 6 e
Developme person
nt Co., Ltd.
Shengjiu Foreign
Investment legal 10.94% 2,204,350 0 0 0
Ltd. person
Domestic
Inapplicabl
Fang Wei natural 4.39% 47,126,039 1,187,300 0 0 0
e
person
Xu Lei Domestic 1.40% 15,000,000 2,780,000 0 0 Inapplicabl 0
Interim Report 2026 of China Fangda Group Co., Ltd.
natural e
person
Domestic
Inapplicabl
Xu Zhe natural 1.16% 12,500,000 3,500,000 0 0 0
e
person
Domestic
Zhou Inapplicabl
natural 0.70% 7,508,210 -2,256,000 0 0 0
Youming e
person
Shenwan
Hongyuan
Foreign
Securities Inapplicabl
legal 0.55% 5,943,171 0 0 0 0
(Hong e
person
Kong) Co.,
Ltd.
Domestic
Xiong Inapplicabl
natural 0.48% 5,110,257 0 3,832,693 1,277,564 0
Jianming e
person
GUOTAI
JUNAN
Foreign
SECURITI Inapplicabl
legal 0.37% 4,026,226 0 0 0 0
ES (HONG e
person
KONG)
LIMITED
Shanghai
Silver Leaf
Investment
Co., Ltd.-
Silver Leaf
Quantitativ Inapplicabl
Others 0.33% 3,575,500 0 0 0 0
e Hedging e
Phase 1
Private
Securities
Investment
Fund
Strategic investors or
general legal persons
becoming top 10 None
shareholders due to new
share placements (if any)
Notes to top ten Among the above shareholders, Shenzhen Banglin Technology Development Co., Ltd., Shengjiu
shareholder relationship Investment Co., Ltd., and Xiong Jianming are acting in concert. The Company is not notified of
or "action in concert" other action-in-concert or related parties among the other holders.
Description of the above
shareholders involved in
entrusted / entrusted None
voting right and waiver of
voting right
Special instructions on the
existence of special Among the top 10 shareholders, the "Fangda Group Co., Ltd. Dedicated Securities Repurchase
repurchase account among Account" holds 16,500,050 A-shares of the Company, accounting for 1.54% of the total share
the top 10 shareholders (if capital, and is excluded from the list of the top 10 shareholders.
any)
Shareholding status of the top 10 shareholders without sales restrictions (excluding shares lent through refinancing, senior
management locked shares)
Interim Report 2026 of China Fangda Group Co., Ltd.
Category of shares
Name of shareholder Amount of shares without sales restriction Category of
Quantity
shares
Shenzhen Banglin RMB
Technologies 119,332,846 common
Development Co., Ltd. shares
Domestical
ly listed 117,454,30
Shengjiu Investment Ltd. 117,454,303
foreign 3
shares
RMB
Fang Wei 47,126,039 common 47,126,039
shares
RMB
Xu Lei 15,000,000 common 15,000,000
shares
RMB
Xu Zhe 12,500,000 common 12,500,000
shares
RMB
Zhou Youming 7,508,210 common 7,508,210
shares
Domestical
Shenwan Hongyuan
ly listed
Securities (Hong Kong) 5,943,171 5,943,171
foreign
Co., Ltd.
shares
Domestical
GUOTAI JUNAN
ly listed
SECURITIES (HONG 4,026,226 4,026,226
foreign
KONG) LIMITED
shares
Shanghai Silver Leaf
Investment Co., Ltd.-
RMB
Silver Leaf Quantitative
Hedging Phase 1 Private
shares
Securities Investment
Fund
RMB
Li Hao 3,518,300 common 3,518,300
shares
Explanation of the
relationship or acting in
concert among the top 10
shareholders without sales Among the above shareholders, Shenzhen Banglin Technology Development Co., Ltd., Shengjiu
restrictions, and between Investment Co., Ltd., and Xiong Jianming are acting in concert. The Company is not notified of
the top 10 shareholders other action-in-concert or related parties among the other holders.
without sales restrictions
and the top 10
shareholders
Fang Wei holds 47,126,039 shares of the Company through a customer credit transaction guarantee
securities account with CITIC Securities Co., Ltd.;
Top-10 common share Xu Lei holds 15,000,000 shares of the Company through the Client Credit Trading Guarantee
shareholders participating Securities Account of Guolian Minsheng Securities Co., Ltd.;
in margin trade (if any) Xu Zhe holds 12,000,000 shares of the Company through the Client Credit Trading Guarantee
(see note 4) Securities Account of Guolian Minsheng Securities Co., Ltd.;
Shanghai Yinye Investment Co., Ltd. – Yinye Quantitative Hedging Phase I Private Securities
Investment Fund holds 3,575,500 shares of the Company through the Client Credit Trading
Interim Report 2026 of China Fangda Group Co., Ltd.
Guarantee Securities Account of Xiangcai Securities Co., Ltd.;
Li Hao holds 3,518,300 shares of the Company through the Client Credit Trading Guarantee
Securities Account of Guotai Haitong Securities Co., Ltd.
Situation of share lending in refinancing business by shareholders holding more than 5%, the top 10 shareholders, and the top 10
shareholders of unrestricted circulating shares
□ Applicable ? Inapplicable
Changes due to lending/returning of shares in refinancing business by the top 10 shareholders and the top 10 shareholders of
unrestricted circulating shares compared to the previous period
□ Applicable ? Inapplicable
Agreed re-purchasing by the Company's top 10 shareholders of common shares and top 10 shareholders of unconditional common
shares in the report period
□ Yes ? No
No agreed re-purchasing by the Company's top 10 shareholders of common shares and top 10 shareholders of unconditional
common shares in the report period
IV. Changes in shareholding of Directors and Senior Management
□ Applicable ? Inapplicable
The Company's Directors and senior management shareholding has remained unchanged during the report period. For details,
please refer to the 2025 annual report.
V. Changes in controlling shareholder or actual controller
Where the Company has previously disclosed that the actual controller is planning a change of control that remains incomplete,
please describe the progress of such change of control.
□ Applicable ? Inapplicable
Changes in the controlling shareholder in the reporting period
□ Applicable ? Inapplicable
No change in the controlling shareholder in the report period
Change in the actual controller in the report period
□ Applicable ? Inapplicable
No change in the actual shareholder in the report period
Interim Report 2026 of China Fangda Group Co., Ltd.
VI. Preferred Shares
□ Applicable ? Inapplicable
The Company had no preferred share in the report period.
Interim Report 2026 of China Fangda Group Co., Ltd.
Chapter VII Information about the Company's Securities
□ Applicable ? Inapplicable
Interim Report 2026 of China Fangda Group Co., Ltd.
Chapter VIII Financial Statements
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
Prepared by: China Fangda Group Co., Ltd.
June 30, 2026
In RMB
Item Closing balance Opening balance
Current asset:
Monetary capital 1,307,061,214.67 1,401,292,102.72
Settlement provision
Outgoing call loan
Transactional financial assets 31,505,968.50 410.06
Derivative financial assets 899,846.25 1,459,950.00
Notes receivable 32,981,099.69 121,778,063.00
Account receivable 768,077,027.19 885,516,557.23
Receivable financing 16,748,225.96
Prepayment 60,424,946.92 20,407,968.16
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other receivables 128,940,277.57 120,173,307.70
Including: interest receivable
Dividend receivable
Repurchasing of financial assets
Inventory 677,752,245.52 685,058,418.56
Among them: data resources
Contract assets 1,900,353,208.42 1,998,091,151.43
Assets held for sales
Non-current assets due in 1 year
Other current assets 261,435,012.93 296,646,964.92
Total current assets 5,186,179,073.62 5,530,424,893.78
Interim Report 2026 of China Fangda Group Co., Ltd.
Non-current assets:
Loan and advancement provided
Debt investment
Other debt investment
Long-term receivables
Long-term share equity investment 32,953,385.52 32,988,644.63
Investment in other equity tools
Other non-current financial assets 6,010,966.43 6,516,131.63
Investment real estate 5,598,103,817.83 5,548,371,426.50
Fixed assets 927,689,776.20 940,980,113.90
Construction in process 497,646.04 1,214,530.34
Productive biological assets
Gas & petrol
Use right assets 16,870,707.96 13,470,006.41
Intangible assets 80,715,712.43 82,258,834.99
Among them: data resources
R&D expense
Among them: data resources
Goodwill
Long-term amortizable expenses 6,981,647.91 6,562,494.97
Deferred income tax assets 275,768,058.05 266,869,033.36
Other non-current assets 139,115,235.76 145,743,957.24
Total of non-current assets 7,084,706,954.13 7,044,975,173.97
Total of assets 12,270,886,027.75 12,575,400,067.75
Current liabilities
Short-term loans 1,509,124,058.02 1,202,846,497.03
Loans from Central Bank
Call loan received
Transactional financial liabilities
Derivative financial liabilities 4,250,400.00
Notes payable 638,320,019.04 429,110,637.53
Account payable 1,647,662,603.78 2,040,691,220.16
Prepayment received 3,467,916.54 3,517,539.83
Contract liabilities 313,538,993.72 350,155,877.61
Selling of repurchased financial assets
Deposit received and held for others
Entrusted trading of securities
Entrusted selling of securities
Employees' wage payable 36,238,023.94 67,812,846.09
Taxes payable 26,053,466.76 40,439,297.75
Other payables 142,080,215.85 125,372,728.24
Including: interest payable
Interim Report 2026 of China Fangda Group Co., Ltd.
Dividend payable
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liabilities due in 1 year 104,661,339.49 379,089,194.66
Other current liabilities 38,912,867.08 60,918,938.51
Total current liabilities 4,464,309,904.22 4,699,954,777.41
Non-current liabilities:
Insurance contract provision
Long-term loans 1,230,000,000.00 1,290,000,000.00
Bond payable
Including: preferred stock
Perpetual bond
Lease liabilities 10,078,800.17 8,979,546.87
Long-term payable
Long-term employee benefits payable
Anticipated liabilities 3,548,078.18 1,455,390.21
Deferred earning 25,127,360.71 26,304,277.69
Deferred income tax liabilities 942,148,443.25 941,080,689.22
Other non-current liabilities
Total of non-current liabilities 2,210,902,682.31 2,267,819,903.99
Total liabilities 6,675,212,586.53 6,967,774,681.40
Owners' equity:
Share capital 1,073,874,227.00 1,073,874,227.00
Other equity tools
Including: preferred stock
Perpetual bond
Capital reserves 4,357,948.33 4,357,948.33
Less: Shares in stock 59,938,011.28
Other miscellaneous income 154,510,936.45 161,046,834.50
Special reserves
Surplus reserve 85,368,328.00 85,368,328.00
Common risk provisions
Undistributed profit 4,289,138,882.25 4,234,637,792.91
Total owners' equity attributable to the
parent company
Minor shareholders' equity 48,361,130.47 48,340,255.61
Total of owners' equity 5,595,673,441.22 5,607,625,386.35
Total liabilities and owners' equity 12,270,886,027.75 12,575,400,067.75
Legal Representative: Xiong Jianming Person in Charge of Accounting Functions: Lin Kebin
Head of Accounting Department: Wang Huan
In RMB
Item Closing balance Opening balance
Interim Report 2026 of China Fangda Group Co., Ltd.
Current asset:
Monetary capital 3,088,968.72 20,613,570.12
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 5,850,720.90 5,225,854.36
Receivable financing
Prepayment 86,015.64 342,719.99
Other receivables 1,092,664,677.23 1,131,454,187.78
Including: interest receivable
Dividend receivable
Inventory
Among them: data resources
Contract assets
Assets held for sales
Non-current assets due in 1 year
Other current assets 1,822,218.15 2,482,430.99
Total current assets 1,103,512,600.64 1,160,118,763.24
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term share equity investment 1,706,562,530.00 1,706,562,530.00
Investment in other equity tools
Other non-current financial assets 30,000,001.00 30,000,001.00
Investment real estate 376,551,400.00 376,551,400.00
Fixed assets 44,109,795.15 44,963,441.98
Construction in process
Productive biological assets
Gas & petrol
Use right assets 2,069,776.87 3,449,628.07
Intangible assets 1,370,237.39 1,266,785.86
Among them: data resources
R&D expense
Among them: data resources
Goodwill
Long-term amortizable expenses 10,953.60 104,570.72
Deferred income tax assets
Other non-current assets
Total of non-current assets 2,160,674,694.01 2,162,898,357.63
Total of assets 3,264,187,294.65 3,323,017,120.87
Current liabilities
Interim Report 2026 of China Fangda Group Co., Ltd.
Short-term loans
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 899,767.71 845,545.88
Prepayment received 849,774.26 758,736.42
Contract liabilities
Employees' wage payable 873,617.21 1,883,259.98
Taxes payable 774,916.91 248,881.74
Other payables 997,733,826.39 1,005,650,528.32
Including: interest payable
Dividend payable
Liabilities held for sales
Non-current liabilities due in 1 year 2,160,836.77 2,839,640.73
Other current liabilities 263,918.70 259,291.84
Total current liabilities 1,003,556,657.95 1,012,485,884.91
Non-current liabilities:
Long-term loans
Bond payable
Including: preferred stock
Perpetual bond
Lease liabilities 727,265.94
Long-term payable
Long-term employee benefits payable
Anticipated liabilities
Deferred earning
Deferred income tax liabilities 49,410,214.77 46,328,991.71
Other non-current liabilities
Total of non-current liabilities 49,410,214.77 47,056,257.65
Total liabilities 1,052,966,872.72 1,059,542,142.56
Owner's equity:
Share capital 1,073,874,227.00 1,073,874,227.00
Other equity tools
Including: preferred stock
Perpetual bond
Capital reserves 360,835.52 360,835.52
Less: Shares in stock 59,938,011.28
Other miscellaneous income 39,731,740.46 39,731,740.46
Special reserves
Surplus reserve 85,368,328.00 85,368,328.00
Undistributed profit 1,071,823,302.23 1,064,139,847.33
Total of owners' equity 2,211,220,421.93 2,263,474,978.31
Total of liabilities and owner's interest 3,264,187,294.65 3,323,017,120.87
Interim Report 2026 of China Fangda Group Co., Ltd.
In RMB
Item H1 2026 H1 2025
Incl. Business income 1,551,057,757.28 1,598,286,450.04
Interest income
Insurance fee earned
Fee and commission received
Incl. Business cost 1,263,984,601.43 1,307,537,649.28
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy responsibility reserves provided
Insurance policy dividend paid
Reinsurance expenses
Taxes and surcharges 17,713,676.77 16,691,311.31
Sales expense 25,412,850.11 22,633,578.48
Administrative expense 82,094,951.56 90,172,531.38
R&D cost 55,615,640.54 61,514,176.71
Financial expenses 46,105,794.26 37,580,544.45
Including: interest cost 37,038,622.14 36,331,469.54
Interest income 2,953,634.90 5,980,063.68
Add: other gains 5,753,213.63 6,902,959.39
Investment gains ("-" for loss) -739,746.64 -680,394.74
Incl. Investment gains from affiliates and joint
-35,259.11 -35,164.25
ventures
Financial assets derecognized as a result of
-1,233,163.38 -696,903.65
amortized cost
Exchange gains ("—" for loss)
Net open hedge gains ("-" for loss)
Gains from change of fair value ("-" for loss) 2,413,712.01 2,766,545.64
Credit impairment ("-" for loss) -11,064,393.24 -59,005,981.56
Investment impairment loss ("-" for loss) 7,490,908.24 4,589,393.55
Investment gains ("-" for loss) 149,689.17 -1,522,602.22
Plus: non-operational income 329,521.20 219,391.05
Less: non-operational expenditure 370,452.58 576,871.24
Less: Income tax expenses 9,569,899.61 -2,457,491.76
Interim Report 2026 of China Fangda Group Co., Ltd.
(1) By operating consistency
(2) By ownership
company ("-" for net loss)
loss)
After-tax net amount of other misc. incomes attributed to
-6,535,898.05 1,859,020.93
parent's owner
(1) Other misc. incomes that cannot be re-classified into
gain and loss
transferred to profit or loss under the equity method
(2) Other misc. incomes that will be re-classified into gain
-6,535,898.05 1,859,020.93
and loss
profit or loss under the equity method
available-for-sale financial assets
After-tax net of other misc. income attributed to minority
-830.59 257.09
shareholders
Total of misc. incomes attributable to the owners of the parent
company
Total misc gains attributable to the minor shareholders 20,874.86 17,248.92
(1) Basic earnings per share 0.0508 0.0161
(2) Diluted earnings per share 0.0508 0.0161
Net profit contributed by entities merged under common control in the report period was RMB0.00, net profit realized by parties
merged during the previous period is RMB0.00.
Legal Representative: Xiong Jianming Person in Charge of Accounting Functions: Lin Kebin
Head of Accounting Department: Wang Huan
In RMB
Item H1 2026 H1 2025
Less: Operation cost 3,361.57 0.00
Taxes and surcharges 628,588.72 631,890.33
Sales expense
Interim Report 2026 of China Fangda Group Co., Ltd.
Administrative expense 13,260,605.96 13,655,557.07
R&D cost
Financial expenses 50,814.20 -140,903.66
Including: interest cost 57,878.68 133,932.04
Interest income 11,016.57 200,370.07
Add: other gains 87,739.60 58,615.83
Investment gains ("-" for loss) 34,765.14 25,548,151.98
Incl. Investment gains from affiliates and joint
ventures
Financial assets derecognized as a result of
amortized cost ("-" for loss)
Net open hedge gains ("-" for loss)
Gains from change of fair value ("-" for loss)
Credit impairment ("-" for loss) -6,528.16 -26,336.24
Investment impairment loss ("-" for loss)
Investment gains ("-" for loss) 32,377.91
Plus: non-operational income 7,948.41 6,681.42
Less: non-operational expenditure 1,205.13
Less: Income tax expenses 3,081,223.06 -471,772.92
(1) Net profit from continuous operation ("-" for net loss) 7,683,454.90 23,150,646.60
(2) Net profit from discontinuous operation ("-" for net loss)
(1) Other misc. incomes that cannot be re-classified into
gain and loss
transferred to profit or loss under the equity method
(2) Other misc. incomes that will be re-classified into gain
and loss
profit or loss under the equity method
available-for-sale financial assets
(1) Basic earnings per share
(2) Diluted earnings per share
Interim Report 2026 of China Fangda Group Co., Ltd.
In RMB
Item H1 2026 H1 2025
Cash received from sales of products and providing of
services
Net increase of customer deposits and capital kept for brother
company
Net increase of loans from central bank
Net increase of inter-bank loans from other financial bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
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 73,377,250.18 3,765,227.06
Other cash received from business operation 40,602,023.06 76,539,611.68
Sub-total of cash inflow from business operations 1,896,299,398.49 1,725,169,511.01
Cash paid for purchasing products and services 1,400,192,734.25 1,406,952,767.91
Net increase of client trade and advance
Net increase of savings in central bank and brother company
Cash paid for original contract claim
Net increase in funds dismantled
Cash paid for interest, processing fee and commission
Cash paid for policy dividend
Cash paid to and for the staff 249,210,262.87 266,473,149.48
Taxes paid 94,110,280.26 87,939,225.95
Other cash paid for business activities 145,118,899.44 230,151,595.52
Sub-total of cash outflow from business operations 1,888,632,176.82 1,991,516,738.86
Cash flow generated by business operations, net 7,667,221.67 -266,347,227.85
Cash received from investment recovery 688,773,640.90
Cash received as investment profit 716,712.77 54,562.28
Net cash retrieved from disposal of fixed assets, intangible
assets, and other long-term assets
Net cash received from disposal of subsidiaries or other
operational units
Other investment-related cash received
Sub-total of cash inflow generated from investment 693,944,053.67 47,693,951.27
Cash paid for construction of fixed assets, intangible assets
and other long-term assets
Cash paid as investment 719,351,449.55
Net increase of loan against pledge
Net cash paid for acquiring subsidiaries and other operational
units
Other cash paid for investment
Subtotal of cash outflows 742,720,808.77 15,143,990.05
Cash flow generated by investment activities, net -48,776,755.10 32,549,961.22
Interim Report 2026 of China Fangda Group Co., Ltd.
Cash received from investment 15.06
Incl. Cash received from investment attracted by subsidiaries
from minority shareholders
Cash received from borrowed loans 1,256,571,505.53 1,893,093,229.99
Other cash received from financing activities 191,000,000.00
Subtotal of cash inflow from financing activities 1,256,571,505.53 2,084,093,245.05
Cash paid to repay debts 1,261,480,000.00 1,947,980,500.00
Cash paid as dividend, profit, or interests 39,126,592.53 88,294,367.10
Incl. Dividend and profit paid by subsidiaries to minority
shareholders
Other cash paid for financing activities 338,251,933.09 89,650,891.23
Subtotal of cash outflow from financing activities 1,638,858,525.62 2,125,925,758.33
Net cash flow generated by financing activities -382,287,020.09 -41,832,513.28
-6,307,215.80 3,502,591.55
equivalents
Plus: Balance of cash and cash equivalents at the beginning of
term
In RMB
Item H1 2026 H1 2025
Cash received from sales of products and providing of
services
Tax refunded
Other cash received from business operation 86,648,571.79 559,232,320.99
Sub-total of cash inflow from business operations 126,969,775.31 566,493,341.95
Cash paid for purchasing products and services 1,651,599.12 1,382,148.25
Cash paid to and for the staff 7,789,581.25 9,831,037.86
Taxes paid 603,533.59 561,987.88
Other cash paid for business activities 72,768,103.35 516,801,634.20
Sub-total of cash outflow from business operations 82,812,817.31 528,576,808.19
Cash flow generated by business operations, net 44,156,958.00 37,916,533.76
Cash received from investment recovery 39,000,000.00
Cash received as investment profit 34,765.14 25,551,041.10
Net cash retrieved from disposal of fixed assets, intangible
assets, and other long-term assets
Net cash received from disposal of subsidiaries or other
operational units
Other investment-related cash received
Sub-total of cash inflow generated from investment 39,034,765.14 25,551,041.10
Cash paid for construction of fixed assets, intangible assets
and other long-term assets
Cash paid as investment 39,000,000.00
Net cash paid for acquiring subsidiaries and other operational
units
Other cash paid for investment
Subtotal of cash outflows 39,314,906.20 79,143.94
Cash flow generated by investment activities, net -280,141.06 25,471,897.16
Cash received from investment
Interim Report 2026 of China Fangda Group Co., Ltd.
Cash received from borrowed loans
Other cash received from financing activities
Subtotal of cash inflow from financing activities
Cash paid to repay debts
Cash paid as dividend, profit, or interests 53,693,711.35
Other cash paid for financing activities 61,401,418.34 51,209,383.00
Subtotal of cash outflow from financing activities 61,401,418.34 104,903,094.35
Net cash flow generated by financing activities -61,401,418.34 -104,903,094.35
equivalents
Plus: Balance of cash and cash equivalents at the beginning of
term
Amount of the Current Term
In RMB
H1 2026
Owners' Equity Attributable to the Parent Company
Total
Other equity tools Other Comm Minor
Item of
Capital Less: Special Undistr shareho
Share miscell Surplus on risk Subtota lders'
Preferr owners'
Perpetu reserve Shares reserve ibuted Others equity
capital ed Others aneous reserve provisi l
s in stock s profit equity
al bond
share income ons
of last year 48.33 328.00 255.61
beginning of current 74,227. 6,834.5 37,792. 85,130. 25,386.
year 00 0 91 74 35
the current period ("-" 6,535,8 11,972, 11,951,
for decrease) 98.05 819.99 945.13
(1) Total of misc. 54,501, 47,965, 20,874. 47,986,
incomes 089.34 191.29 86 066.15
(2) Investment or - -
decreasing of capital 59,938, 59,938,
by owners 011.28 011.28
- -
invested by owners 011.28
(3) Profit allotment
(4) Internal carry-
over of owners'
equity
(5) Special reserves
(6) Others
of this period 48.33 011.28 328.00 130.47
Interim Report 2026 of China Fangda Group Co., Ltd.
Amount of Last Year
In RMB
H1 2025
Owners' Equity Attributable to the Parent Company
Minor Total
Other equity tools Other Comm
Item shareho of
Capital Less: Special Undistr
Share Preferr miscell Surplus on risk Subtota
reserve Shares reserve ibuted Others lders' owners'
Perpetu
capital ed Others aneous reserve provisi l
s in stock s profit equity equity
al bond
share income ons
of last year 48.33 716.22 072.04
beginning of current 74,227. 5,014.5 92,000. 03,906. 10,978.
year 00 2 28 35 39
the current period ("-" 36,404, 34,545, 34,527,
for decrease) 113.12 092.19 843.27
(1) Total of misc. 1,859,0 17,289, 19,148, 17,248. 19,165,
incomes 20.93 598.23 619.16 92 868.08
- - -
(II) Profit distribution 53,693, 53,693, 53,693,
owners (or 53,693, 53,693, 53,693,
shareholders) 711.35 711.35 711.35
(4) Internal carry-
over of owners'
equity
(5) Special reserves
(6) Others
of this period 48.33 716.22 320.96
Amount of the Current Term
In RMB
H1 2026
Other equity tools Other
Less: Total of
Item Share Capital miscellane Special Surplus Undistribu
Preferred Perpetual Shares in Others owners'
capital Others reserves ous reserves reserve ted profit
share bond stock equity
income
of last year 227.00 2 0.46 8.00 847.33 978.31
beginning of current 0.00 0.00 0.00 0.00 0.00
year
Interim Report 2026 of China Fangda Group Co., Ltd.
the current period ("-" 6.38
for decrease)
(1) Total of misc. 7,683,454. 7,683,454.
incomes 90 90
(2) Investment or -
decreasing of capital 59,938,01
by owners 1.28
invested by owners 1.28
(3) Profit allotment 0.00
(4) Internal carry-over
of owners' equity
(5) Special reserves 0.00
(6) Others 0.00
of this period 227.00 2 1.28 0.46 8.00 302.23 421.93
Amount of Last Year
In RMB
H1 2025
Other equity tools Le
Pe ss: O
Pref rp Sh Spec t
Other
Item Capital are ial h Total of owners'
erre et
Share capital Oth miscellaneous Surplus reserve Undistributed profit
d ua reserves s reser e equity
ers income
shar l in ves r
e bo sto s
nd ck
of last year
beginning of current 1,073,874,227.00 0.00 0.00 360,835.52 39,731,740.46 83,974,716.22 1,105,291,052.65 2,303,232,571.85
year
the current period ("-" -30,543,064.75 -30,543,064.75
for decrease)
(1) Total of misc.
incomes
(II) Profit distribution -53,693,711.35 -53,693,711.35
owners (or -53,693,711.35 -53,693,711.35
shareholders)
(4) Internal carry-over
of owners' equity
(5) Special reserves
(6) Others
of this period
Interim Report 2026 of China Fangda Group Co., Ltd.
III. General Information
China Fangda Group Co., Ltd. (the "Company" or the "Group") is a joint stock company registered in Shenzhen, Guangdong
and was approved by the Government of Shenzhen with Document Shen Fu Ban Han (1995) No.194, and was founded, on the
basis of Shenzhen Fangda Construction Material Co., Ltd., by way of share issuing in October 1995. The unified social credit code
is: 91440300192448589C; registered address: Fangda Technology Building, Keji South 12th Road, South District, High-tech
Industrial Park, Nanshan District, Shenzhen. Mr. Xiong Jianming is the legal representative.
The Company issued foreign currency shares (B shares) and local currency shares (A shares) and listed in November 1995
and April 1996 respectively in Shenzhen Stock Exchange. The Company received the Reply to the Non-public Share Issuance of
Fangda China Group Co., Ltd. (CSRC License [2016] No.825) to allow the Company to conduct non-public issuance of
meeting, the Company issued five shares for every ten shares to all shareholders through surplus capitalization based on the total
the Company repurchased and canceled 28,160,568 B-shares; in January 2019, the Company repurchased and canceled 32,097,497
B-shares; in May 2020, the Company repurchased and canceled 35,105,238 B-shares; and in April 2021, the Company
repurchased and canceled 14,404,724 B-shares. In June 2026, the Company repurchased 16,500,050 A-shares, which are
temporarily held as treasury shares. The current registered capital is RMB 1,073,874,227.00.
The Company has established the corporate governance structure of the General Meeting of Shareholders and the Board of
Directors. At present, it has set up the President's Office, the Administration Department, the Human Resources Department, the
Enterprise Management Department, the Finance Department, the Audit and Supervision Department, the Securities Department,
the Legal Department, the Information Management Department, the Technology Innovation Department, and other departments,
and has Shenzhen Fangda Construction Technology Group Co., Ltd. (hereinafter referred to as Fangda Construction Technology
Co., Ltd.) Fangda Zhiyuan Technology Co., Ltd. (hereinafter referred to as Fangda Zhiyuan Technology Co., Ltd.), Fangda Jiangxi
New Materials Co., Ltd., Fangda Real Estate Co., Ltd., Fangda New Energy Co., Ltd. and other subsidiaries.
The business nature and main business activities of the Company and its subsidiaries include: (1) curtain wall division,
production and sales of curtain wall materials, design, production and installation of building curtain walls, and curtain wall testing
and maintenance services; (2) Rail transit branch, assembly and processing of subway screen doors, screen door detection and
maintenance services; (3) The real estate division is engaged in real estate development, operation and property leasing and
Interim Report 2026 of China Fangda Group Co., Ltd.
property management services on the land that has legally obtained the right to use; (4) New energy division, photovoltaic power
generation and sales; R&D, installation and sales of photovoltaic equipment, design and installation of photovoltaic power station
project.
Date of Authorization for Issue of Financial Statements: These financial statements were authorized for issue by a resolution
of the Board of Directors of the Company on August 21, 2026.
IV. Basis for the preparation of financial statements
The Company prepares the financial statements based on continuous operation and according to actual transactions and
events, with figures confirmed and measured in compliance with the Accounting Standards for Business Enterprises and other
specific account standards, application guide and interpretations. The Company has also disclosed related financial information
according to the requirement of the Regulations of Information Disclosure No.15 – General Provisions for Financial Statements
(Revised in 2023) issued by the CSRC.
The Company assessed the continuing operations capability of the Company for the 12 months from the end of the reporting
period. No matters were found that would affect the Company's ability to continue as a going concern. It is reasonable for the
Company to prepare financial statements based on continuing operations.
V. Significant Account Policies and Estimates
The following major accounting policies and accounting estimates shall be formulated in accordance with the accounting
standards of the enterprise. Unmentioned operations are carried out in accordance with the relevant accounting policies in the
enterprise accounting standards.
The financial statements prepared by the Company comply with the requirements of the Accounting Standards for Business
Enterprises, and present fairly and completely the financial position, results of operations, changes in owners' equity, and cash
flows of the Company.
Interim Report 2026 of China Fangda Group Co., Ltd.
The Company The fiscal period ranges between January 1 and December 31 of the Gregorian calendar.
Our normal business cycle is one year
The Company's bookkeeping standard currency is Renminbi, and overseas subsidiaries are based on the currency of the main
economic environment in which they operate.
? Applicable □ Inapplicable
Item Importance criteria
Amount of bad debt reserves recovered or reversed for Amounts exceeding 5% of the consolidated total profit and
important accounts receivable in the current period; important greater than RMB5 million (if the amount is negative, its
accounts receivable write off absolute value is used)
Important ongoing projects Amount greater than 1% of total consolidated net assets
A single project is greater than 0.1% of the combined total
Important payables with an aging of over 1 year
assets
Individual net assets greater than 1% of the total consolidated
Major non wholly-owned subsidiaries
net assets
Investment income exceeding 5% of the consolidated total
Important joint ventures and associates profit and greater than RMB5 million (if the amount is
negative, its absolute value is used)
(1) Consolidation of entities under common control
The assets and liabilities acquired by the Company in a business combination are measured at the book value of the combined
party in the consolidated financial statements of the ultimate controlling party on the date of combination. Where the combined
party applied different accounting policies and accounting periods from those of the Company prior to the business combination,
such policies and periods have been harmonized based on the materiality principle—specifically, the carrying amounts of the
combined party's assets and liabilities have been adjusted in accordance with the Company's accounting policies and accounting
periods. If there is a difference between the book value of the net assets acquired by the Company in the business combination and
the book value of the consideration paid, first adjust the balance of the capital reserve (capital premium or equity premium), the
Interim Report 2026 of China Fangda Group Co., Ltd.
balance of the capital reserve (capital premium or equity premium) If it is insufficient to offset, the surplus reserve and
undistributed profits will be offset in sequence.
For the accounting treatment method of business combination not under the same control through step-by-step transactions,
see Chapter VIII, V. important accounting policies and accounting estimates 7. (6).
(2) Consolidation of entities under different control
All identifiable assets and liabilities acquired by the Company during the merger shall be measured at its fair value on the
date of purchase. Where the acquiree applied different accounting policies and accounting periods from those of the Company
prior to the business combination, such policies and periods have been harmonized based on the materiality principle—specifically,
the carrying amounts of the acquiree's assets and liabilities have been adjusted in accordance with the Company's accounting
policies and accounting periods. The merger cost of the Company on the date of purchase is greater than the fair value of the assets
and liabilities recognized by the purchaser in the merger, and is recognized as goodwill. If the merger cost is less than the
difference between the identifiable assets and the fair value of the liabilities obtained by the purchaser in the enterprise merger, the
merger cost and the fair value of the identifiable assets and the liabilities obtained by the purchaser in the enterprise merger are
reviewed, and the merger cost is still less than the fair value of the identifiable assets and liabilities obtained by the purchaser after
the review, the difference is considered as the profit and loss of the current period of the merger.
For the accounting treatment method of business combinations not under common control achieved through step-by-step
transactions, see Section VIII, V, Important Accounting Policies and Estimates, 7, (6).
(3) Treatment of related transaction fee in enterprise merger
Agency expenses and other administrative expenses such as auditing, legal consulting, or appraisal services occurred relating
to the merger of entities are accounted into current income account when 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.
(1) Determination of control criteria and consolidation scope
Control means the power possessed by the Company on invested entities to share variable returns by participating in related
activities of the invested entities and to impact the amount of the returns by using the power. The definition of control includes
Interim Report 2026 of China Fangda Group Co., Ltd.
three basic elements: first, the investor has the power over the investee; second, enjoys variable returns due to participation in the
investee's related activities; and third, has the ability to use the power over the investee to influence its return amount. When the
Company's investment in the invested party meets the above three elements, it indicates that the Company can control the invested
party.
The consolidated scope of the consolidated financial statements is determined on a control basis and includes not only
subsidiaries determined on the basis of voting rights (or similar voting rights) themselves or in conjunction with other
arrangements, but also structured subjects determined on the basis of one or more contractual arrangements.
The subsidiary company is the subject controlled by the Company (including the enterprise, the divisible part of the invested
unit and the structured subject controlled by the enterprise, etc.). The structured subject is the subject which is not designed to
determine the controlling party by taking the voting right or similar right as the decisive factor.
(2) Special provisions regarding the parent company being an investment entity
If the parent company is an investment entity, only those subsidiary companies that provide services related to investment
activities of the investment entity shall be included in the consolidation scope. Other subsidiary companies shall not be
consolidated and their equity investments shall be recognized as financial assets measured at fair value with changes in fair value
recognized in profit or loss.
The parent company qualifies as an investment entity when it simultaneously meets the following conditions:
① The company obtains funds from one or more investors with the purpose of providing investment management services to
the investors.
② The sole purpose of the company's operations is to generate returns for the investors through capital appreciation,
investment income, or both.
③ The company evaluates and assesses the performance of almost all of its investments based on fair value.
When the parent company changes from a non-investment entity to an investment entity, it shall only include those subsidiary
companies that provide relevant services for its investment activities in the preparation of consolidated financial statements. Other
Interim Report 2026 of China Fangda Group Co., Ltd.
subsidiary companies shall no longer be consolidated, and the principle of recognizing partially disposed subsidiary companies'
equity while retaining control shall be applied.
When the parent company changes from an investment entity to a non-investment entity, the subsidiary companies that were
previously not included in the consolidation financial statements shall be included as of the date of the change. The fair value of
these subsidiary companies on the date of the change shall be regarded as the transaction price of the acquisition and accounted for
using the accounting treatment for business combinations under common control.
(3) Preparation of Consolidated Financial Statements
The Company prepares consolidated financial statements based on the financial statements of itself and its subsidiaries and
based on other relevant information.
The Company compiles consolidated financial statements, regards the whole enterprise group as an accounting entity, reflects
the overall financial status, operating results and cash flow of the enterprise group according to the confirmation, measurement and
presentation requirements of the relevant enterprise accounting standards, and the unified accounting policy and accounting period.
① Merge the assets, liabilities, owner's rights and interests, income, expenses and cash flow of parent company and
subsidiary company.
② Offset the long-term equity investment of the parent company to the subsidiary company and the share of the parent
company in the ownership rights of the subsidiary company.
③ Offset the influence of internal transaction between parent company, subsidiary company and subsidiary company. If an
internal transaction indicates that the relevant asset has suffered an impairment loss, the part of the loss shall be confirmed in full.
④ adjust the special transaction from the angle of enterprise group.
(4) Processing of subsidiaries during the reporting period
① Increase of subsidiaries or business
A. Subsidiary or business increased by business combination under the same control
Interim Report 2026 of China Fangda Group Co., Ltd.
(A) When preparing the consolidated balance sheet, adjust the opening number of the consolidated balance sheet and adjust
the related items of the comparative statement. The same report entity as the consolidated balance sheet will exist from the time of
the final control party.
(B) When preparing the consolidated cash flow statement, the cash flows of the subsidiary and the business combination from
the beginning of the current period to the end of the reporting period are included in the consolidated cash flow statement, and the
related items of the comparative statement are adjusted, which is regarded as the combined report body since the final The
controller has been there since the beginning of control.
(C) When preparing the consolidated cash flow statement, the cash flows of the subsidiary and the business combination from
the beginning of the current period to the end of the reporting period are included in the consolidated cash flow statement, and the
related items of the comparative statement are adjusted, which is regarded as the combined report body since the final The
controller has been there since the beginning of control.
B. Subsidiary or business increased by business combination under the same control
(A) When preparing the consolidated balance sheet, the opening number of the consolidated balance sheet is not adjusted.
(B) When preparing the consolidated profit statement, the income, expense and profit of the subsidiary company and the
business Purchase date and Closing balance shall be included in the consolidated profit statement.
(C) When the consolidated cash flow statement is prepared, the cash flow from the purchase date of the subsidiary to the end
of the reporting period is included in the consolidated cash flow statement.
② Disposal of subsidiaries or business
A. When preparing the consolidated balance sheet, the opening number of the consolidated balance sheet is not adjusted.
B. When preparing the consolidated profit statement, the income, expense and profit of the subsidiary company and the
business opening and disposal date shall be included in the consolidated profit statement.
C. When the consolidated cash flow statement is prepared, the cash flow from the Beginning of the period of the subsidiary to
the end of the reporting period is included in the consolidated cash flow statement.
Interim Report 2026 of China Fangda Group Co., Ltd.
(5) Special considerations in consolidation offsets
① The long-term equity investment held by a subsidiary company shall be regarded as the inventory shares of the Company
as a subtraction of the owner's rights and interests, which shall be listed under the item of "subtraction: Stock shares" under the
item of owner's rights and interests in the consolidated balance sheet.
The long-term equity investments held by the subsidiaries are offset by the shares of the shareholders of the subsidiaries.
② The "special reserve" and "general risk preparation" projects, because they are neither real capital (or share capital) nor
capital reserve, but also different from the retained income and undistributed profits, are restored according to the ownership of the
parent company after the long-term equity investment is offset by the ownership rights and interests of the subsidiary company.
③ If there is a temporary difference between the book value of assets and liabilities in the consolidated balance sheet and the
taxable basis of the taxpayer due to the offset of the unrealized internal sales gain or loss, the deferred income tax asset or the
deferred income tax liability is confirmed in the consolidated balance sheet, and the income tax expense in the consolidated profit
statement is adjusted, with the exception of the deferred income tax related to the transaction or event directly included in the
owner's equity and the merger of the enterprise.
④ The unrealized internal transaction gains and losses incurred by the Company from selling assets to subsidiaries shall be
fully offset against the "net profit attributable to the owners of the parent company". The unrealized internal transaction gains and
losses arising from the sale of assets by the subsidiary to the Company shall be offset between the "net profit attributable to the
owners of the parent company" and the "minority shareholder gains and losses" in accordance with the Company's distribution
ratio to the subsidiary. The unrealized internal transaction gains and losses arising from the sale of assets between subsidiaries
shall be offset between the "net profit attributable to the owners of the parent company" and the "minority shareholders' gains and
losses" in accordance with the Company's distribution ratio to the seller's subsidiary.
⑤ If the current loss shared by the minority shareholders of the subsidiary exceeds the share of the minority shareholders in
the owner 's equity of the subsidiary at the beginning of the period, the balance should still be offset against the minority
shareholders 'equity.
(6) Accounting treatment of special transactions
① Purchase minority shareholders' equity
Interim Report 2026 of China Fangda Group Co., Ltd.
The Company purchases the shares of the subsidiaries owned by the minority shareholders of the subsidiaries. In the
individual financial statements, the investment costs of the newly acquired long-term investments of the minority shares shall be
measured at the fair value of the price paid. In the consolidated financial statements, the difference between the newly acquired
long-term equity investment due to the purchase of minority equity and the share of net assets that should be continuously
calculated by the subsidiary since the purchase date or the merger date should be adjusted according to the new shareholding ratio.
The product (capital premium or equity premium), if the capital reserve is insufficient to offset, the surplus reserve and
undistributed profits are offset in turn.
② Step-by-step acquisition of control of the subsidiary through multiple transactions
A. Enterprise merger under common control through multiple transactions
On the date of the merger, the Company determines the initial investment cost of the long-term equity investment in the
individual financial statements based on the share of the subsidiary 's net assets that should be enjoyed after the merger in the final
controller 's consolidated financial statements; the initial investment cost and the difference between the book value of the long-
term equity investment before the merger plus the book value of the consideration paid for new shares acquired on the merger date,
the capital reserve (capital premium or equity premium) is adjusted, and the capital reserve (capital premium or equity premium) is
insufficient to offset Reduced, in turn offset the surplus reserve and undistributed profits.
In consolidated financial statements, assets and liabilities obtained by the merging party from the merged party should be
measured at the book value in the final controlling party's consolidated financial statements other than the adjustment made due to
differences in accounting policies; adjust the capital surplus (share premium) according to the difference between the initial
investment cost and the book value of the held investment before merger plus the book value of the consideration paid on the
merger date. Where the capital surplus falls short, the retained income should be adjusted.
Before the acquirer obtains control of the acquiree, any recognized gains and losses, other comprehensive income, and
changes in other owners' equity related to the equity investment held by the acquirer from the later of the date when the original
equity was obtained or the date when both the acquirer and the acquiree were under the control of the same party until the
acquisition date should be adjusted against the beginning retained earnings or the current profits and losses of the comparative
statements separately.
A. Enterprise merger under common control through multiple transactions
Interim Report 2026 of China Fangda Group Co., Ltd.
On the merger day, in individual financial statements, the initial investment cost of the long-term equity investment on the
merger day is based on the book value of the long-term equity investment previously held plus the sum of the additional
investment costs on the merger day.
In the consolidated financial statements, the equity held in the acquiree before the acquisition date is remeasured at its fair
value on the acquisition date. If the equity held before the acquisition date is designated as a financial asset measured at fair value
through other comprehensive income, the difference between the fair value and its book value is included in retained earnings, and
the cumulative fair value changes previously included in other comprehensive income are transferred to retained earnings. If the
equity held before the acquisition date is designated as a financial asset measured at fair value through profit or loss or as a long-
term equity investment accounted for by the equity method, the difference between the fair value and its book value is included in
the current period's investment income. For other comprehensive income and other changes in owners' equity under the equity
method related to the equity held before the acquisition date, the related other comprehensive income is accounted for on the same
basis as if the investee had directly disposed of the related assets or liabilities on the acquisition date, and the related other changes
in owners' equity are transferred to the current period's investment income on the acquisition date.
(3) The Company disposes of long-term equity investment in subsidiaries without losing control
The parent company partially disposes of the long-term equity investment in the subsidiary company without losing control.
In the consolidated financial statements, the disposal price corresponds to the disposal of the long-term equity investment. The
difference between the shares is adjusted for the capital reserve (capital premium or equity premium). If the capital reserve is
insufficient to offset, the retained earnings are adjusted.
④ The Company disposes of long-term equity investment in subsidiaries and loses control
A. One transaction disposition
If the Company loses control over the Invested Party due to the disposal of part of the equity investment, it shall remeasure
the remaining equity according to its fair value at the date of loss of control when compiling the consolidated financial statement.
The consideration received from the disposal of equity plus the fair value of the remaining equity, minus the share of net assets
and goodwill calculated based on the original shareholding ratio from the acquisition date or combination date to the disposal date,
is included in the investment income for the period in which control is lost.
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Other comprehensive income related to equity investments in former subsidiaries is accounted for, upon loss of control, on
the same basis as if the related assets or liabilities of the former subsidiary were directly disposed of. Other changes in owners'
equity related to former subsidiaries that were previously recognized under the equity method are reclassified to profit or loss in
the period in which control is lost.
B. Multi-transaction step-by-step disposition
In consolidated financial statements, you should first determine whether a step-by-step transaction is a "blanket transaction".
If the step-by-step transaction does not belong to a "package deal", in the individual financial statements, for each transaction
before the loss of control of the subsidiary, the book value of the long-term equity investment corresponding to each disposal of
equity is carried forward, the price received and the disposal The difference between the book value of the long-term equity
investment is included in the current investment income; in the consolidated financial statements, it should be handled in
accordance with the relevant provisions of "the parent company disposes of the long-term equity investment in the subsidiary
without losing control."
If a step-by-step transaction belongs to a "blanket transaction", the transaction shall be treated as a transaction that disposes of
the subsidiary and loses control; In individual financial statements, the difference between each disposal price before the loss of
control and the book value of the long-term equity investment corresponding to the equity being disposed of is first recognized as
other consolidated gains and then converted to the current loss of control at the time of the loss of control; In the consolidated
financial statements, for each transaction prior to the loss of control, the difference between the disposition of the price and the
disposition of the investment corresponding to the share in the net assets of the subsidiary shall be recognized as other
consolidated gains and shall, at the time of the loss of control, be transferred to the loss of control for the current period.
Where the terms, conditions, and economic impact of each transaction meet one or more of the following conditions, usually
multiple transactions are treated as a "package deal":
(a) These transactions were concluded at the same time or in consideration of mutual influence.
(b) These transactions can only achieve the business result as a whole;
(c) The effectiveness of one transaction depends the occurrence of at least another transaction;
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(d) A single transaction is not economic and is economic when considered together with other transactions.
(5) Proportion of minority shareholders in factor companies who increase capital and dilute ownership of parent companies
When other shareholders (minority shareholders) of a subsidiary increase their investment in the subsidiary, thereby diluting
the parent company's equity proportion in the subsidiary. In the consolidated financial statements, the share of the parent company
in the net book assets of the former subsidiary of the capital increase is calculated according to the share ratio of the parent
company before the capital increase, the difference between the share and the net book assets of the latter subsidiary after the
capital increase is calculated according to the share ratio of the parent company, the capital reserve (capital premium or capital
premium), the capital reserve (capital premium or capital premium) is not offset, and the retained income is adjusted.
A joint arrangement is an arrangement jointly controlled by two or more participants. The Company classifies its joint
arrangements into joint operations and joint ventures.
(1) Joint Operations
A joint operation is a joint arrangement whereby the Company has rights to the related assets and obligations for the related
liabilities of the arrangement.
The Company recognizes the following items relating to its interest in a joint operation and accounts for them in accordance
with the relevant enterprise accounting standards:
① Recognizes assets held separately, as well as its share of jointly held assets;
② Recognizes liabilities borne separately, as well as its share of jointly borne liabilities;
③ Recognizes revenue from the sale of its share of output from the joint operation;
④ Recognizes its share of revenue generated by the joint operation from the sale of output;
⑤ Recognizes expenses incurred separately, as well as its share of expenses incurred by the joint operation.
(2) Joint Ventures
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A joint venture is a joint arrangement whereby the Company has rights only to the net assets of the arrangement.
The Company accounts for its investment in joint ventures using the equity method in accordance with the relevant provisions
on long-term equity investments.
Cash refers to cash in stock and deposits that can be used for payment at any time. Cash equivalents refer to investments with
a short holding period (generally referring to expiry within three months from the date of purchase), strong liquidity, easy to
convert to a known amount of cash, and little risk of value change.
(1) Methods for determining conversion rates in foreign currency transactions
The Company translates foreign currency transactions into the functional currency at the initial recognition using the spot
exchange rate on the transaction date or an approximate exchange rate that is determined according to a reasonable method and is
close to the spot exchange rate on the transaction date. The resulting amount is recorded in the accounting currency.
(2) Methods of conversion of foreign currency items on balance sheet days
At the balance sheet date, foreign currency items are translated on the spot exchange rate of the balance sheet date. The
exchange differences caused by the difference in exchange rates on the balance sheet date and initial recognizing date or previous
balance sheet date are included in the current profits and losses. For non-monetary items measured at historical cost in foreign
currencies, they are translated using the spot exchange rate on the transaction date. For inventories measured at the lower of cost
and net realizable value, if the inventories were purchased in foreign currencies and their net realizable value is reflected in foreign
currencies as of the balance sheet date, the net realizable value is first translated into the functional currency at the spot exchange
rate on the balance sheet date, and then compared with the inventory cost reflected in the functional currency to determine the
ending value of the inventories. Non-monetary items measured at fair value in foreign currencies are translated using the spot
exchange rate on the date the fair value is determined. For financial assets measured at fair value with changes recognized in the
current period's profit or loss, the difference between the translated amount in the functional currency and the original amount in
the functional currency is recognized in the current period's profit or loss. For non-trading equity investments designated to be
measured at fair value with changes recognized in other comprehensive income, the difference between the translated amount in
the functional currency and the original amount in the functional currency is recognized in other comprehensive income.
Interim Report 2026 of China Fangda Group Co., Ltd.
(3) Translation of foreign exchange statements
Prior to the conversion of the financial statements of an enterprise's overseas operations, the accounting period and policy of
the overseas operations should be adjusted to conform to the accounting period and policy of the enterprise. The financial
statements of the corresponding currency (other than the functional currency) should be prepared according to the adjusted
accounting policy and the accounting period. The financial statements of the overseas operations should be converted according to
the following methods:
① The assets and liabilities items in the balance sheet are translated at the spot exchange rate on the balance sheet date.
Except for the "undistributed profits" items, the owner's equity items are translated at the spot exchange rate when they occur.
② The income and expense items in the profit statement are converted at the spot exchange rate on the transaction date or the
approximate exchange rate of the spot exchange rate.
③ The foreign currency cash flow and the foreign subsidiary's cash flow are converted using the immediate exchange rate or
the approximate exchange rate at the date of the cash flow. The impact of exchange rate changes on cash should be used as an
adjustment item and presented separately in the cash flow statement.
④ The foreign currency translation differences arising are presented under the "Other Comprehensive Income" item in the
shareholders' equity section of the consolidated balance sheet when preparing the consolidated financial statements.
When foreign operations are disposed of and the control rights are lost, the difference in foreign currency statements related
to the overseas operations that are listed in the shareholders' equity items in the balance sheet is transferred to the profit or loss for
the current period, either in whole or in proportion to the disposal of the foreign operations.
Financial instrument refers to a company's financial assets and contracts that form other units of financial liabilities or equity
instruments.
(1) Recognition and de-recognition of financial instrument
The Company recognizes a financial asset or liability when it becomes one party in the financial instrument contract.
Financial asset is derecognized when:
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① The contractual right to receive the cash flows of the financial assets is terminated;
② The financial asset is transferred and meets the following derecognization condition.
If the current obligation of a financial liability (or part of it) has been discharged, the Company derecognizes the financial
liability (or part of the financial liability). When the Company (borrower) and lender enter into an agreement to replace the
original financial liabilities by undertaking new financial liabilities and the contract terms for the new financial liabilities are
essentially different from those for the original one, the original financial liabilities will be derecognized and new financial
liabilities will be recognized. Where the Company makes substantial amendments to the contract terms of the original financial
liability (or part thereof), it shall terminate the original financial liability and confirm a new financial liability in accordance with
the amended terms.
Financial asset transactions in regular ways are recognized and de-recognized on the transaction date. The conventional sale
of financial assets means the delivery of financial assets in accordance with the contractual terms and conditions, at the time set
out in the regulations or market practices. Transaction date refers to the date when the Company promises to buy or sell financial
assets.
(2) Classification and subsequent measurement of financial assets
At initial recognition, the Company classifies financial assets into the following three categories based on the business model
of managing financial assets and the contractual cash flow characteristics of financial assets: financial assets measured at
amortized cost are measured at fair value and their changes are included in other financial assets with current profit and loss and
financial assets measured at fair value through profit or loss. Unless the Company changes the business model for managing
financial assets, in this case, all affected financial assets are reclassified on the first day of the first reporting period after the
business model changes, otherwise the financial assets may not be initially confirmed.
Financial assets are measured at the fair value at the initial recognition. For financial assets measured at fair value with
variations accounted into current income account, related transaction expenses are accounted into the current income. For other
financial assets, the related transaction expenses are accounted into the initial recognized amounts. Bills receivable and accounts
receivable arising from the sale of commodities or the provision of labor services that do not contain or do not consider significant
financing components, the Company performs initial measurement according to the transaction price defined by the income
standard.
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The subsequent measurement of financial assets depends on their classification:
① Financial assets measured at amortized cost
Financial assets that meet the following conditions at the same time are classified as financial assets measured at amortized
cost: The Company 's business model for managing this financial asset is to collect contractual cash flows as its goal; the contract
terms of the financial asset stipulate that Cash flow is only the payment of principal and interest based on the outstanding principal
amount. For such financial assets, the actual interest rate method is used for subsequent measurement according to the amortized
cost. The gains or losses arising from the termination of recognition, amortization or impairment based on the actual interest rate
method are included in the current profit and loss.
② Financial assets measured at fair value and whose changes are included in other comprehensive income
Financial assets that meet the following conditions at the same time are classified as financial assets measured at fair value
and their changes are included in other comprehensive income: The Company's business model for managing this financial asset is
to both target the collection of contractual cash flows and the sale of financial assets. Objective; The contractual terms of the
financial asset stipulate that the cash flow generated on a specific date is only for the payment of principal and interest based on
the outstanding principal amount. For such financial assets, fair value is used for subsequent measurement. Except for impairment
losses or gains and exchange gains and losses recognized as current gains and losses, changes in the fair value of such financial
assets are recognized as other comprehensive income. Until the financial asset is derecognized, its accumulated gains or losses are
transferred to current gains and losses. However, the relevant interest income of the financial asset calculated by the actual interest
rate method is included in the current profit and loss.
The Company irrevocably chooses to designate a portion of non-tradeable equity instrument investment as a financial asset
measured at fair value and whose variation is included in other consolidated income. Only the relevant dividend income is
included in the current profit and loss, and the variation of fair value is recognized as other consolidated income.
③ Financial assets measured at fair value with variations accounted into current income account
The above financial assets measured at amortized cost and other financial assets measured at fair value and whose changes
are included in other comprehensive income are classified as financial assets measured at fair value and whose changes are
Interim Report 2026 of China Fangda Group Co., Ltd.
included in the current profit and loss. For such financial assets, fair value is used for subsequent measurement, and all changes in
fair value are included in current profit and loss.
(3) Classification and measurement of financial liabilities
The Company classifies financial liabilities into financial liabilities measured at fair value and their changes included in the
current profit and loss, loan commitments and financial guarantee contract liabilities for loans below market interest rates, and
financial liabilities measured at amortized cost.
The subsequent measurement of financial liabilities depends on their classification:
① Financial liabilities measured at fair value with variations accounted into current income account
Such financial liabilities include transactional financial liabilities (including derivatives that are financial liabilities) and
financial liabilities designated as at fair value through profit or loss. After the initial recognition, the financial liabilities are
subsequently measured at fair value. Except for the hedge accounting, the gains or losses (including interest expenses) are
recognized in profit or loss. However, for the financial liabilities designated as fair value and whose variations are included in the
profits and losses of the current period, the variable amount of the fair value of the financial liability due to the variation of credit
risk of the financial liability shall be included in the other consolidated income. When the financial liability is terminated, the
cumulative gains and losses previously included in the other consolidated income shall be transferred out of the other consolidated
income and shall be included in the retained income.
② Loan commitments and financial security contractual liabilities
A loan commitment is a promise that the Company provides to customers to issue loans to customers with established
contract terms within the commitment period. Loan commitments are provided for impairment losses based on the expected credit
loss model.
A financial guarantee contract refers to a contract that requires the Company to pay a specific amount of compensation to the
contract holder who suffered a loss when a specific debtor is unable to repay the debt in accordance with the original or modified
debt instrument terms. Financial guarantee contract liabilities are subsequently measured based on the higher of the loss reserve
amount determined in accordance with the principle of impairment of financial instruments and the initial recognition amount after
deducting the accumulated amortization amount determined in accordance with the revenue recognition principle.
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③ Financial liabilities measured at amortized cost
After initial recognition, other financial liabilities are measured at amortized cost using the effective interest method.
Except in special circumstances, financial liabilities and equity instruments are distinguished according to the following
principles:
① If the Company cannot unconditionally avoid delivering cash or other financial assets to fulfill a contractual obligation, the
contractual obligation meets the definition of financial liability. While some financial instruments do not explicitly contain terms
and conditions for the delivery of cash or other financial assets, they may indirectly form contractual obligations through other
terms and conditions.
If a financial instrument is required to be settled with or can be settled with the Company's own equity instruments, the
Company's own equity instrument used to settle the instrument needs to be considered as a substitute for cash or other financial
assets or for the holder of the instrument to enjoy the remaining equity in the assets after all liabilities are deducted. If it is the
former, the instrument is the financial liabilities of the issuer; if it is the latter, the instrument is the equity instrument of the issuer.
In some cases, a financial instrument contract provides that the Company shall or may use its own instrument of interest, in which
the amount of a contractual right or obligation is equal to the amount of the instrument of its own interest which may be acquired
or delivered multiplied by its fair value at the time of settlement, whether the amount of the contractual right or obligation is fixed
or is based entirely or in part on a variation of a variable other than the market price of the instrument of its own interest, such as
the rate of interest, the price of a commodity or the price of a financial instrument, the contract is classified as a financial liability.
(4) Derivative financial instruments and embedded derivatives
Derivative financial instruments are initially measured at the fair value of the day when the derivative transaction contract is
signed, and are subsequently measured at their fair values. Derivative financial instruments with a positive fair value are
recognized as asset, and instruments with a negative fair value are recognized as liabilities.
The gains and losses arising from the change in fair value of derivatives are directly included in the profits and losses of the
current period, except that the part of the cash flow that is valid in the hedge is included in the other consolidated income and
transferred out when the hedged item affects the gain and loss of the current period.
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For a hybrid instrument containing an embedded derivative instrument, if the principal contract is a financial asset, the hybrid
instrument as a whole applies the relevant provisions of the financial asset classification. If the main contract is not a financial
asset, and the hybrid instrument is not measured at fair value and its changes are included in the current profit and loss for
accounting, the embedded derivative does not have a close relationship with the main contract in terms of economic characteristics
and risks, and it is If the instruments with the same conditions and exist separately meet the definition of derivative instruments,
the embedded derivative instruments are separated from the mixed instruments and treated as separate derivative financial
instruments. If the fair value of the embedded derivative on the acquisition date or the subsequent balance sheet date cannot be
measured separately, the hybrid instrument as a whole is designated as a financial asset or financial liability measured at fair value
and whose changes are included in the current profit or loss.
(5) Financial instrument Less
The Company shall confirm the preparation for loss on the basis of expected credit loss for financial assets measured at
amortization costs, creditor's rights investments measured at fair value, contractual assets, leasing receivables, loan commitments
and financial guarantee contracts, etc.
① Measurement of expected credit losses of accounts receivable
The expected credit loss refers to the weighted average of the credit losses of financial instruments that are weighted by the
risk of default. Credit loss refers to the difference between all contractual cash flows receivable from the contract and all cash
flows expected to be received by the Company at the original actual interest rate, that is, the present value of all cash shortages.
Among them, the financial assets which have been purchased or born by the Company shall be discounted according to the actual
rate of credit adjustment of the financial assets.
The expected lifetime credit loss is the expected credit loss due to all possible default events during the entire expected life of
the financial instrument.
Expected credit losses in the next 12 months are expected to result from possible defaults in financial instruments within 12
months after the balance sheet date (or estimated duration of financial instruments if the expected duration is less than 12 months)
Credit losses are part of the expected lifetime credit loss.
On each balance sheet day, the Company measures the expected credit losses of financial instruments at different stages.
Where the credit risk has not increased significantly since the initial confirmation of the financial instrument, it is in the first stage.
Interim Report 2026 of China Fangda Group Co., Ltd.
The Company measures the preparation for loss according to the expected credit loss in the next 12 months. Where the credit risk
has increased significantly since the initial confirmation but the credit impairment has not occurred, the financial instrument is in
the second stage. Where a credit impairment has occurred since the initial confirmation of the financial instrument, it shall be in
the third stage, and the Company shall prepare for measuring the expected credit loss of the whole survival period of the
instrument.
For financial instruments with low credit risk on the balance sheet date, the Company assumes that the credit risk has not
increased significantly since the initial recognition, and measures the loss provision based on the expected credit losses in the next
For financial instruments that are in the first and second stages and with lower credit risk, the Company calculates interest
income based on their book balances and actual interest rates without deduction for impairment provision. For financial
instruments in the third stage, interest income is calculated based on the amortized cost and the actual interest rate after the book
balance minus the provision for impairment.
Regarding bills receivable, accounts receivable and financing receivables, regardless of whether there is a significant
financing component, the Company measures the loss provision based on the expected credit losses throughout the duration.
Accounts receivable/contract assets
Applicable from December 1, 2025
Where there is objective evidence of impairment, as well as other receivable instruments, receivables, other receivables,
receivables financing and long-term receivables applicable to individual assessments, separate impairment tests are performed to
confirm expected credit losses and prepare individual impairment. For notes receivable, accounts receivable, other receivables,
financing of receivables, long-term receivables, and contract assets for which there is no objective evidence of impairment, or
when individual financial assets cannot be assessed at a reasonable cost, the Company divides bills receivable, accounts receivable,
other receivables, receivable financing, long-term receivables, and contract assets into several combinations based on credit risk
characteristics, and calculates expected credit losses on the basis of the combination. The basis for determining the combination is
as follows:
The basis for determining the combination of notes receivable is as follows:
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Notes Receivable Combination 1 Commercial Acceptance Bill
Notes Receivable Combination 2 Bank Acceptance Bill
For Notes receivable divided into portfolios, the Company refers to historical credit loss experience, combined with current
conditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit loss
rate within the next 12 months or the entire duration Expected credit losses.
The basis for determining the combination of accounts receivable is as follows:
Accounts Receivable Portfolio 1: Receivables from curtain wall business
Accounts Receivable Portfolio 2: Receivables from platform screen door business
Accounts Receivable Portfolio 3: Receivables from new materials business
Accounts Receivable Portfolio 4: Receivables from new energy business
Accounts Receivable Portfolio 5: Receivables from commercial real estate and others
Other receivable portfolio 6 Receivables from related parties within the scope of consolidation
For the accounts receivable divided into a combination, the Company refers to the historical credit loss experience, combined
with the current situation and the forecast of the future economic situation, compiles the account receivable age and the whole
expected credit loss rate table, and calculates the expected credit loss.
The basis for determining the combination of other receivables is as follows:
Other receivable portfolio 1 Interest receivable
Portfolio of other receivables 2 Dividends receivable
Other combinations of receivables 3 Deposit and margin receivable
Other receivable portfolio 4 Receivable advances
Interim Report 2026 of China Fangda Group Co., Ltd.
Combination of other receivables 5 Value-added tax receivable is increased and refunded
Other receivable portfolio 6 Receivables from related parties within the scope of consolidation
Other receivables portfolio 7 Other receivables
For other receivables divided into portfolios, the Company refers to historical credit loss experience, combined with current
conditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit loss
rate within the next 12 months or the entire duration Expected credit losses.
The basis for determining the combination of receivables financing is as follows:
Receivables financing portfolio 1 bank acceptance bill
For Notes receivable divided into portfolios, the Company refers to historical credit loss experience, combined with current
conditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit loss
rate within the next 12 months or the entire duration Expected credit losses.
The basis for determining the portfolio of contract assets is as follows:
Contract assets portfolio 1 Completed and unsettled project not meeting collection conditions
Contract assets portfolio 2 Quality guarantee deposit not meeting collection conditions
Contract assets portfolio 3 conditional collection right of sales
For contract assets divided into portfolios, the Company refers to historical credit loss experience, combined with current
conditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit loss
rate within the next 12 months or the entire duration Expected credit losses.
Applicable on and before November 30, 2025
Where there is objective evidence of impairment, as well as other receivable instruments, receivables, other receivables,
receivables financing and long-term receivables applicable to individual assessments, separate impairment tests are performed to
confirm expected credit losses and prepare individual impairment. For notes receivable, accounts receivable, other receivables,
Interim Report 2026 of China Fangda Group Co., Ltd.
financing of receivables, long-term receivables, and contract assets for which there is no objective evidence of impairment, or
when individual financial assets cannot be assessed at a reasonable cost, the Company divides bills receivable, accounts receivable,
other receivables, receivable financing, long-term receivables, and contract assets into several combinations based on credit risk
characteristics, and calculates expected credit losses on the basis of the combination. The basis for determining the combination is
as follows:
The basis for determining the combination of notes receivable is as follows:
Notes Receivable Combination 1 Commercial Acceptance Bill
Notes Receivable Combination 2 Bank Acceptance Bill
For Notes receivable divided into portfolios, the Company refers to historical credit loss experience, combined with current
conditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit loss
rate within the next 12 months or the entire duration Expected credit losses.
The basis for determining the combination of accounts receivable is as follows:
Accounts receivable combination 1 Accounts receivable business
Accounts receivable combination 2 Real estate receivable business
Accounts receivable combination 3 Others receivable business
Other receivable portfolio 4 Receivables from related parties within the scope of consolidation
For the accounts receivable divided into a combination, the Company refers to the historical credit loss experience, combined
with the current situation and the forecast of the future economic situation, compiles the account receivable age and the whole
expected credit loss rate table, and calculates the expected credit loss.
The basis for determining the combination of other receivables is as follows:
Other receivable portfolio 1 Interest receivable
Portfolio of other receivables 2 Dividends receivable
Interim Report 2026 of China Fangda Group Co., Ltd.
Other combinations of receivables 3 Deposit and margin receivable
Other receivable portfolio 4 Receivable advances
Combination of other receivables 5 Value-added tax receivable is increased and refunded
Other receivable portfolio 6 Receivables from related parties within the scope of consolidation
Other receivables portfolio 7 Other receivables
For other receivables divided into portfolios, the Company refers to historical credit loss experience, combined with current
conditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit loss
rate within the next 12 months or the entire duration Expected credit losses.
The basis for determining the combination of receivables financing is as follows:
Receivables financing portfolio 1 bank acceptance bill
For Notes receivable divided into portfolios, the Company refers to historical credit loss experience, combined with current
conditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit loss
rate within the next 12 months or the entire duration Expected credit losses.
The basis for determining the portfolio of contract assets is as follows:
Contract assets portfolio 1 conditional collection right of sales
Contract assets portfolio 2 Completed and unsettled project not meeting collection conditions
Contract assets portfolio 3 Quality guarantee deposit not meeting collection conditions
For contract assets divided into portfolios, the Company refers to historical credit loss experience, combined with current
conditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit loss
rate within the next 12 months or the entire duration Expected credit losses.
Other debt investment
Interim Report 2026 of China Fangda Group Co., Ltd.
For other receivables divided into portfolios, the Company refers to historical credit loss experience, combined with current
conditions and predictions of future economic conditions, and calculates through default risk exposure and expected credit loss
rate within the next 12 months or the entire duration Expected credit losses.
② Lower credit risk
If the risk of default on financial instruments is low, the borrower's ability to meet its contractual cash flow obligations in the
short term is strong, and even if the economic situation and operating environment are adversely changed over a long period of
time, it may not necessarily reduce the receivables' performance of their contractual cash. The ability of the flow obligation, the
financial instrument is considered to have a lower credit risk.
③ Significant increase in credit risk
The Company compares the default probability of the financial instrument during the expected lifetime determined by the
balance sheet date with the default probability of the expected lifetime during the initial confirmation to determine the relative
probability of the default probability of the financial instrument during the expected lifetime Changes to assess whether the credit
risk of financial instruments has increased significantly since initial recognition.
In determining whether the credit risk has increased significantly since the initial recognition, the Company considers
reasonable and evidenced information, including forward-looking information, that can be obtained without unnecessary
additional costs or effort. The information considered by the Company includes:
A. Significant changes in internal price indicators resulting from changes in credit risk;
B. Adverse changes in business, financial or economic conditions that are expected to cause significant changes in the
debtor's ability to perform its debt service obligations;
C. Whether the actual or expected operating results of the debtor have changed significantly; whether the regulatory,
economic or technical environment of the debtor has undergone significant adverse changes;
D. Whether there is a significant change in the value of the collateral used as debt collateral or the guarantee provided by a
third party or the quality of credit enhancement. These changes are expected to reduce the debtor's economic motivation for
repayment within the time limit specified in the contract or affect the probability of default;
Interim Report 2026 of China Fangda Group Co., Ltd.
E. Whether there is a significant change in the economic motivation that is expected to reduce the debtor's repayment
according to the contractual deadline;
F. Anticipated changes to the loan contract, including whether the expected violation of the contract may result in the
exemption or revision of contract obligations, granting interest-free periods, rising interest rates, requiring additional collateral or
guarantees, or making other changes to the contractual framework of financial instruments change;
G. Whether the expected performance and repayment behavior of the debtor has changed significantly;
H. Whether the contract payment is overdue for more than (including) 30 days.
Based on the nature of financial instruments, the Company assesses whether credit risk has increased significantly on the
basis of a single financial instrument or combination of financial instruments. When conducting an assessment based on a
combination of financial instruments, the Company can classify financial instruments based on common credit risk characteristics,
such as overdue information and credit risk ratings.
If the overdue period exceeds 30 days, the Company has determined that the credit risk of financial instruments has increased
significantly. Unless the Company does not have to pay excessive costs or efforts to obtain reasonable and warranted information,
it proves that although it has exceeded the time limit of 30 days agreed upon in the Contract, credit risks have not increased
significantly since the initial confirmation.
④ Financial assets with credit impairment
The Company assesses on the balance sheet date whether financial assets measured at amortized cost and credit investments
measured at fair value and whose changes are included in other comprehensive income have undergone credit impairment. When
one or more events that adversely affect the expected future cash flows of a financial asset occur, the financial asset becomes a
financial asset that has suffered a credit impairment. Evidence that credit impairment has occurred in financial assets includes the
following observable information:
Major financial difficulties have occurred to the issuer or the debtor; Breach of contract by the debtor, such as payment of
interest or default or overdue of principal; (B) The concession that the debtor would not make under any other circumstances for
economic or contractual considerations relating to the financial difficulties of the debtor; The debtor is likely to be bankrupt or
undertake other financial restructuring; The financial difficulties of the issuer or debtor lead to the disappearance of the active
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market for the financial asset; To purchase or generate a financial asset at a substantial discount, which reflects the fact that a
credit loss has occurred.
⑤ Presentation of expected credit loss measurement
In order to reflect the changes in the credit risk of financial instruments since the initial recognition, the Company re-
measures the expected credit losses on each balance sheet date, and the increase or reversal of the loss provision resulting
therefrom is included as an impairment loss or gain. Current profit and loss. For financial assets measured at amortized cost, the
loss allowance offsets the book value of the financial asset listed on the balance sheet; for debt investments measured at fair value
and whose changes are included in other comprehensive income, the Company Recognition of its loss provisions in gains does not
offset the book value of the financial asset.
⑥ Canceled
If it is no longer reasonably expected that the contract cash flow of the financial assets will be fully or partially recovered, the
book balance of the financial assets will be directly reduced. Such write-off constitutes the derecognization of related financial
assets. This usually occurs when the Company determines that the debtor has no assets or sources of income that generate
sufficient cash flow to cover the amount that will be written down.
If the financial assets that have been written down are recovered in the future, the reversal of the impairment loss is included
in the profit or loss of the current period.
(6) Transfer of financial assets
The transfer of financial assets refers to the following two situations:
A. Transfer the contractual right to receive cash flow of financial assets to another party;
B. Transfers the financial assets to the other party in whole or in part, but reserves the contractual right to collect the cash
flow of the financial assets and undertakes the contractual obligation to pay the collected cash flow to one or more recipients.
① De-identification of transferred financial assets
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Those who have transferred almost all risks and rewards in the ownership of financial assets to the transferee, or have neither
transferred nor retained almost all the risks and rewards in the ownership of financial assets, but have given up control of the
financial assets, terminate the confirmation The financial asset.
In determining whether control over the transferred financial asset has been waived, the actual capacity of the transferor to
sell the financial asset is determined. If the transferor is able to sell the transferred financial assets wholly to a third party that does
not have a relationship with them, and has no additional conditions to limit the sale, it indicates the Company has waived control
over the financial assets.
The Company pays attention to the essence of financial asset transfer when judging whether financial asset transfer meets the
condition of financial asset termination.
If the overall transfer of financial assets meets the conditions for termination of confirmation, the difference between the
following two amounts is included in the current profit and loss:
A. Continuing identification of transferred Book value；
B. The sum of the amount received as a result of the transfer and the amount accrued as a result of the change in the fair value
of the transfer in respect of the termination recognized portion of the amount previously charged directly to the other consolidated
proceeds (the financial assets involved in the transfer are those classified in accordance with Article 18 of Enterprise Accounting
Standard No. 22 - Financial Instruments Recognition and Measurement as measured by the fair value and whose change is charged
to the other consolidated proceeds).
If the partial transfer of financial assets meets the conditions for derecognization, the book value of the entire transferred
financial assets will be included in the derecognized part and the unterminated part (in this case, the retained service assets are
regarded as part of the continued recognition of financial assets) Between them, they are apportioned according to their respective
relative fair values on the transfer date, and the difference between the following two amounts is included in the current profit and
loss:
A. Termination of the book value of the recognized portion on the date of derecognization;
B. The sum of the amount received as a result of the transfer and the amount accrued as a result of the change in the fair value
of the transfer in respect of the termination recognized portion of the amount previously charged to the other consolidated
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proceeds (the financial assets involved in the transfer are those classified in accordance with Article 18 of Enterprise Accounting
Standard No. 22 - Financial Instruments Recognition and Measurement as measured by the fair value and whose change is charged
to the other consolidated proceeds).
② Continue to be involved in the transferred financial assets
If neither transfer nor retain almost all the risks and rewards of the ownership of financial assets, and have not given up
control of the financial assets, the relevant financial assets should be confirmed according to the extent of their continued
involvement in the transferred financial assets, and the relevant liabilities should be recognized accordingly.
The extent to which the transferred financial assets continue to be involved refers to the extent to which the enterprise
undertakes the risk or compensation of the value change of the transferred financial assets.
(III) Continuing identification of transferred financial assets
Where almost all risks and remuneration in relation to ownership of the transferred financial assets are retained, the whole of
the transferred financial assets shall continue to be recognized and the consideration received shall be recognized as a financial
liability.
The financial asset and the recognized related financial liabilities shall not offset each other. In the subsequent accounting
period, the enterprise shall continue to recognize the income (or gain) generated by the financial asset and the costs (or losses)
incurred by the financial liability.
(7) Deduction of financial assets and liabilities
Financial assets and financial liabilities should be listed separately in the balance sheet, and cannot be offset against each
other. However, if the following conditions are met, the net amount offset by each other is listed in the balance sheet:
The Company has a statutory right to offset the confirmed amount, and such legal right is currently enforceable;
The Company plans to settle the net assets or realize the financial assets and liquidate the financial liabilities at the same time.
The transferring party shall not offset the transferred financial assets and related liabilities if it does not meet the conditions
for terminating the recognition.
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(8) Recognition of fair value of Finance instruments
For the method for determining the fair value of financial assets and financial liabilities, see 34 (2) in Chapter VIII, V.
Important accounting policies and accounting estimates.
See Chapter VIII, V, Important Accounting Policies and Accounting Estimates 11. Financial Tools.
See Chapter VIII, V, Important Accounting Policies and Accounting Estimates 11. Financial Tools.
The Company needs to comply with the disclosure requirements of the decoration and decoration industry in the Guidelines
for the Self-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.
See Chapter VIII, V, Important Accounting Policies and Accounting Estimates 11. Financial Tools.
See Chapter VIII, V, Important Accounting Policies and Accounting Estimates 11. Financial Tools.
The Company presents contract assets or liabilities in the balance sheet according to the relationship between performance
obligation and customer payment. The consideration for which the Company is entitled to receive (subject to factors other than the
passage of time) for the transfer of goods or the provision of services to customers is listed as contract assets. The Company's
obligation to transfer goods or provide services to customers for consideration received or receivable from customers is listed as
contractual liabilities.
Contract assets and contract liabilities are listed separately in the balance sheet. Contract assets and contract liabilities under
the same contract are listed in net amount. If the net amount is the debit balance, it shall be listed in "contract assets" or "other
non-current assets" according to its liquidity; if the net amount is the credit balance, it shall be listed in "contract liabilities" or
"other noncurrent liabilities" according to its liquidity. Contract assets and contract liabilities under different contracts cannot
offset each other.
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For the determination method and accounting treatment method of the Company's expected credit loss of contract assets, see
(1) Classification of inventories
Inventories refer to finished goods or merchandise held for sale in the ordinary course of business, work-in-process, and
materials and supplies consumed in the production process or during the rendering of services, including raw materials, work-in-
process, semi-finished goods, finished goods, merchandise inventories, and reusable materials.
(2) Pricing of delivering inventory
The Company measures inventories issued using the weighted average cost method.
The inventory of real estate business mainly includes inventory materials, development costs, development products, etc. The
actual costs of development products include land transfer payment, infrastructure and facility costs, installation engineering costs,
borrows before completion of the development and other costs during the development process. The special maintenance funds
collected in the first period are included in the development overheads. When the control right of development products is
transferred, the individual valuation method is used to determine its actual cost.
(3) Inventory system
The Company inventory adopts the perpetual inventory system, counting at least once a year, the inventory profit and loss
amount is included in the current year's profit and loss.
(4) Criteria for recognizing and providing for provision for decline in value of inventories
On the balance sheet date, inventories are accounted depending on which is lower between the cost and the net realizable
value. If the cost is higher than the net realizable value, the impairment provision will be made.
The realizable net value of inventory should be recognized based on solid evidence with the purpose of the inventory and
after-balance-sheet-date events taken into consideration.
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(1) In the course of normal production and operation, the net realizable value of finished goods, commodities and materials
directly used for sale shall be determined by the estimated price of the inventory minus the estimated cost of sale and related taxes.
The inventory held for the execution of a sales contract or a labor contract shall be measured on the basis of the contract price as
its net realizable value; If the quantity held is greater than the quantity ordered under the sales contract, the net realizable value of
the excess inventory is measured on the basis of the general sales price. For materials used for sale, the market price shall be used
as the measurement basis for the net realizable value.
②In the normal production and operation process, the inventory of materials that need to be processed is determined by the
amount of the estimated selling price of the finished product minus the estimated cost to be incurred at the time of completion,
estimated sales expenses and related taxes Realize the net value. If the net realizable value of the finished product produced by it is
higher than the cost, the material is measured at cost; If the decrease in the price of the material indicates that the net realizable
value of the finished product is lower than the cost, the material is measured as the net realizable value and the inventory is
prepared for a decrease based on its difference.
③ If the factors affecting the previous write-down of inventory value have disappeared on the balance sheet date, the amount
of the write-down will be restored and transferred back within the amount of inventory depreciation reserve that has been accrued,
and the amount returned will be included in the current profit and loss.
(5) Methods of amortization of swing materials
① Low-value consumables are amortized on on-off amortization basis at using.
② Packages are amortized on on-off amortization basis at using.
The Group's long-term equity investment includes control on invested entities and significant impacts on equity investment.
Invested entities on which the Group has significant impacts are associates of the Group.
(1) Basis for recognition of common control and major influence on invested entities
Common control refers to the common control of an arrangement in accordance with the relevant agreement, and the relevant
activities of the arrangement must be agreed upon by the participants who share control. In determining whether there is common
control, the first step is to determine whether all or a group of participants collectively control the arrangement, which is
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considered collective control by all or a group of participants if all or a group of participants must act together to determine the
activities associated with the arrangement. Secondly, it is judged whether the decision on related activities of the arrangement must
be agreed by the participants who collectively control the arrangement. If there is a combination of two or more parties that can
collectively control an arrangement, it does not constitute joint control. When judging whether there is joint control, the protective
rights enjoyed are not considered.
Major influence refers to the power to participate in decision-making of financial and operation policies of a company, but
cannot control or jointly control the making of the policies. When considering whether the Company can impose significant
impacts on the invested entity, impacts of conversion of shares with voting rights held directly or indirectly by the investor and
voting rights that can be executed in this period held by the investor and other party into shares of the invested entity should be
considered.
If the Company directly or through subsidiaries holds more than 20% (inclusive) but less than 50% of the shares with voting
rights of the invested entity, unless there is clear evidence proving that the Company cannot participate the decision-making of
production and operation of the invested entity, the Company has major influence on the invested entity.
(2) Recognition of initial investment costs
Long-term equity investments formed by merger of enterprises shall be determined in accordance with the following
provisions:
A. In the case of an enterprise merger under the same control, where the merging party makes a valuation of the merger by
payment of cash, transfer of non-cash assets or undertaking liabilities, the share of the book value of the owner's interest in the
final controlling party's consolidated financial statements as the initial investment cost of the long-term equity investment at the
date of the merger. The difference between the initial investment cost of long-term equity investment and the cash paid, the
transferred non-cash assets and the book value of the debt assumed shall be adjusted to the capital reserve; if the capital reserve is
insufficient to offset, the retained earnings shall be adjusted;
Long-term equity investment generated by enterprise merger: for long-term equity investment obtained by merger of
enterprises under common control, the obtained share of book value of the interests of the merged party's owner in the consolidate
financial statements on the merger date is costs; for long-term equity investment obtained by merger of enterprises not under
common control, the merger cost is the investment cost. Adjust the capital reserve according to the difference between the initial
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investment cost of long-term equity investment and the total face value of the issued shares. If the capital reserve is insufficient to
offset or reduce, the retained income shall be adjusted;
For merger of entities under different control, the merger cost is the fair value of the asset paid, liability undertaken, and
equity securities issued for exchanging of control power over the entities at the day of acquisition. Agency expenses and other
administrative expenses such as auditing, legal consulting, or appraisal services occurred relating to the merger of entities are
accounted into current income account when occurred.
Long-term equity investments formed by merger of enterprises shall be determined in accordance with the following
provisions:
For long-term equity investment obtained by cash, the actually paid consideration is the initial investment cost. Initial
investment costs include expenses, taxes and other necessary expenditures directly related to the acquisition of long-term equity
investments;
B. Long-term equity investments acquired from the issuance of interest securities are the initial investment costs based on the
fair value of the issue interest securities;
C. For long-term equity investments obtained through non-monetary asset exchanges, if the exchange has commercial
substance and the fair value of the exchanged assets or exchanged assets can be reliably measured, the fair value of the exchanged
assets and relevant taxes shall be used as the initial Investment cost, the difference between the fair value and book value of the
swapped-out asset is included in the current profit and loss; if the non-monetary asset exchange does not meet the above two
conditions at the same time, the book value of the swapped-out asset and relevant taxes will be used as the initial investment cost.
D. Long-term equity investments acquired through debt restructuring determine their recorded value at the fair value of the
waived claims and other costs such as taxes directly attributable to the assets and account for the difference between the fair value
and the book value of the waived claims.
(3) Subsequent measurement and recognition of gain/loss
The Company uses the cost method to measure long-term share equity investment in which the Company can control the
invested entity; and uses the equity method to measure long-term share equity investment in which the Company has substantial
influence on the invested entity.
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① Cost
For the long-term equity investment measured on the cost basis, except for the announced cash dividend or profit included in
the practical cost or price when the investment was made, the cash dividends or profit distributed by the invested entity are
recognized as investment gains in the current gain/loss account.
Equity
Gains from long-term equity investment measured by equity
When the equity method is used to measure long-term equity investment, the investment cost will not be adjusted if the
investment cost of the long-term equity investment is larger than the share of fair value of the recognizable assets of the invested
entity. When it is smaller than the share of fair value of the recognizable assets of the invested entity, the book value will be
adjusted and the difference is included in the current gains of the investment.
When the equity method is used, the current investment gain is the share of the net gain realized in the current year that can
be shared or borne, recognized as investment gain and other misc. income. The book value of the long-term equity investment is
adjusted accordingly. The book value of the long-term equity investment should be accordingly decreased based on the share of
profit or cash dividend announced by the invested entity; according to other changes in the owner's equity except for net profit and
loss, other misc income and profit distribution of the invested entity, adjust the book value of the long-term equity investment and
record it in the capital surplus (other capital surplus). When the share of the net gains that can be enjoyed is recognized, it is
recognized after the net profit of the invested entity is adjusted based on the fair value of the recognizable assets of the invested
entity according to the Company's accounting policies and accounting period. Where the accounting policy and accounting period
adopted by the Invested unit are inconsistent with the Company, the financial statements of the Invested unit shall be adjusted in
accordance with the accounting policy and accounting period of the Company, and the investment income and other consolidated
income shall be recognized. Internal transaction gains not realized between the Company and affiliates is measured according to
the shareholding proportion and the investment gains is recognized after deduction. The unrealized internal transaction loss
between the Company and the invested entity is the impairment loss of transferred assets and should not be written off.
Where substantial influence on invested entities is imposed or joint control is implemented due to increase in investment, the
sum of the fair value of the original equity and increased investment on the conversion date is the initial investment cost under the
equity method. If the equity investment originally held is classified as other equity instrument investment, the difference between
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the fair value and the book value, as well as the accumulated gains or losses originally included in other comprehensive income,
shall be transferred out of other comprehensive income and included in retained income in the current period when the equity
method is adopted.
Where joint control or substantial influence on invested entities is lost due to disposal of part of investment, the remaining
equity after the disposal should be treated according to the Enterprise Accounting Standard No.22 – Recognition and Measurement
of Financial Instruments from the date of losing the joint control or substantial influence. The difference between the fair value
and book value should be accounted the profit and loss of the current period. For other misc. incomes of original share equity
investment determined using the equity method, when the equity method is no longer used, it should be treated based on the same
basis of the treatment of related assets or liability of the invested entities; the other owners' interests related to the original share
equity investment should be transferred to gain/loss of the current period.
(4) Equity investment held for sale
For the remaining equity investments not classified as assets held for sale, the equity method is adopted for accounting
treatment.
Equity investments classified as held for sale to associates that are no longer eligible to hold classified assets for sale are
retrospectively adjusted using the equity method starting from the date that they are classified as held for sale. The classification is
adjusted to hold the financial statements for the period to be sold.
(5) Impairment examination and providing of impairment provision
For investments in subsidiaries, associates and joint ventures, the method of accruing asset impairment is shown in 24. Long-
term asset impairment in Chapter VIII, V. Important accounting policies and accounting estimates.
(1) Classification of investment real estate
Investment real estates are held for rent or capital appreciation, or both. These include, inter alia:
① Leased land using right
(2) the right to use the land that is transferred after holding and preparing for the increment.
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③ Leased building
(2) Measurement of investment real estate
For investment real estates with an active real estate transaction market and the Company can obtain market price and other
information of same or similar real estates to reasonably estimate the investment real estates' fair value, the Company will use the
fair value mode to measure the investment real estate subsequently. Variations in fair value are accounted into the current gain/loss
account.
The fair value of investment real estate is determined with reference to the current market prices of same or similar real
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.
(1) Recognition conditions
Fixed assets are recognized at the actual cost of acquisition when the following conditions are met: (1) The economic benefits
associated with the fixed assets are likely to flow into the enterprise.
Fixed assets are recognized at the actual cost of acquisition when the following conditions are met: (1) The economic benefits
associated with the fixed assets are likely to flow into the enterprise.
② The cost of the fixed assets can be measured reliably.
Overhaul cost generated by regular examination on fixed assets is recognized as fixed assets costs when there is evidence
proving that it meets fix assets recognition conditions. If not, it will be accounted into the current gain/loss account.
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(2) Depreciation method
Annual depreciation
Type Depreciation method Service year (year) Residual rate %
rate %
Houses & buildings Average age 20-50 10.00 1.80-4.50
Mechanical equipment Average age 10.00 10.00 9.00
Transportation
Average age 5.00 10.00 18.00
facilities
Electronics and other
Average age 5.00 10.00 18.00
devices
PV power plants Average age 20.00 5.00 4.75
(1) Construction in progress is accounted for by project classification.
(2) Standard and timing for transferring construction in process into fixed assets
The full expenditure incurred on the construction-in-progress project as a fixed asset is recorded as the value of the asset
before the asset is constructed to the intended usable state. This includes construction costs, the original cost of equipment, other
necessary expenditures incurred in order to enable the construction works to reach the intended usable status and the borrowing
costs incurred for the specific borrowing of the project and the general borrowing expenses incurred before the assets reach the
intended usable status. Construction in process will be transferred to fixed assets when it reaches the preset service condition. The
fixed assets that have reached the intended usable state but have not been completed shall be transferred to the fixed assets
according to the estimated value according to the estimated value according to the estimated value according to the project budget,
cost or actual project cost, etc. The depreciation of the fixed assets shall be accrued according to the Company's fixed assets
depreciation policy. The original estimated value shall be adjusted according to the actual cost after the completion.
(1) Recognition principles for capitalization of borrowing expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing or production of asset satisfying the
conditions of capitalizing, are capitalized and accounted as cost of related asset.
(1) Asset expenditure has occurred;
② The borrowing expense has already occurred;
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③ Purchasing or production activity, which is necessary for the asset to reach the useful status, has already started.
Other interest on loans, discounts or premiums and exchange differences are included in the income and loss incurred in the
current period.
If the construction or production of assets satisfying the capitalizing conditions is suspended abnormally for over 3 months,
capitalizing of borrowing expenses shall be suspended. During the normal suspension period, borrowing expenses will be
capitalized continuously.
When the asset satisfying the capitalizing conditions has reached its usable or sellable status, capitalizing of borrowing
expenses shall be terminated.
(2) Calculation of the capitalization amount of borrowing expense
Interest expenses generated by special borrowings less the interests income obtained from the deposit of unused borrowings
or investment gains from temporary investment is capitalized; the capitalization amount for general borrowing is determined based
on the capitalization rate which is the exceeding part of the accumulative assets expense over weighted average of the assets
expense of the special borrowing/used general borrowing.
If the assets that are constructed or produced under the condition of capitalization occupy the general borrowing, the interest
amount to be capitalized in the general borrowing shall be calculated and determined by multiplying the capital rate of the general
borrowing by the weighted average of the asset expenditure of the accumulated assets whose expenditure exceeds that of the
specialized borrowing. The capitalization ratio is the weighted average interest rate of general borrowings.
(1) Amortization of intangible assets
① Useful life of intangible assets with limited useful life
Item Estimated useful life Basis
Land using right Term Use right assets
Reference to determine the lifetime of a company for which it
Trademarks and patents 10 years
can bring economic benefits
Proprietary technology 10 years Reference to determine the lifetime of a company for which it
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can bring economic benefits
Reference to determine the lifetime of a company for which it
Software 5. 10 years
can bring economic benefits
At the end of each year, the Company will reexamine the useful life and amortization basis of intangible assets with limited
useful life. Upon review, the service life and amortization methods of intangible assets at the end of the period are not different
from those previously estimated.
(2) Intangible assets which cannot be foreseeable to bring economic benefits to enterprises shall be regarded as intangible
assets whose useful life is uncertain. For intangible assets with uncertain service life, the Company reviews the service life of
intangible assets with uncertain service life at the end of each year. If it is still uncertain after rechecking, it shall conduct an
impairment test on the balance sheet date.
③ Amortization of intangible assets
For intangible assets with finite useful lives, the Company determines their useful life upon acquisition and systematically
amortizes them using the straight-line method over their useful life. The amortization amount is included in the current profit or
loss of the benefiting project or added to the cost of the related asset. The specific amortization amount is the amount after the cost
is deducted from the estimated residual value. For fixed assets for which depreciation provision is made, the depreciation rate will
be determined after the accumulative depreciation provision amount is deducted. The residual value of an intangible asset with
limited useful life is treated as zero, except where a third party undertakes to purchase the intangible asset at the end of its useful
life or to obtain expected residual value information based on the active market, which is likely to exist at the end of its useful life.
Intangible assets with uncertain service life will not be amortized. At the end of each year, the useful life of intangible assets
with uncertain useful life is reviewed, and if there is evidence that the useful life of intangible assets is limited, the useful life is
estimated and the system is reasonably amortized within the expected useful life.
(2) Scope of R&D expenditures and related accounting treatment
Specific standard for distinguish between research and development stage
① The Company takes the information and related preparatory activities for further development activities as the research
stage, and the intangible assets expenditure in the research stage is included in the current profit and loss period.
② The development activities carried out after the Company has completed the research stage as the development stage.
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Specific conditions for capitalization of expenditures in the development phase
Expenditures in the development phase can be recognized as intangible assets only when the following conditions are met:
A. It is technically feasible to complete the intangible asset so that it can be used or sold;
B. Have the intention to complete the intangible asset and use or sell it;
C. The way intangible assets generate economic benefits, including the ability to prove that the products produced by the
intangible assets exist in the market or the intangible assets themselves exist in the market, and the intangible assets will be used
internally, which can prove their usefulness;
D. Have sufficient technical, financial and other resource support to complete the development of the intangible asset, and
have the ability to use or sell the intangible asset;
E. The expenditure attributable to the development stage of the intangible asset can be reliably measured.
The Group uses the cost mode to continue measuring the assets impairment to investment real estate, fixed assets construction
in progress, intangible assets and goodwill (except for the inventories, investment real estate measured by the fair value mode,
deferred income tax assets and financial assets). The method is determined as follows:
The Company judges whether there is a sign of impairment to assets on the balance sheet day. If such sign exists, the
Company estimates the recoverable amount and conducts the impairment test. Impairment test is conducted annually for goodwill
generated by mergers and intangible assets that have not reached the useful condition no matter whether the impairment sign exists.
The recoverable amount is determined by the higher of the net of fair value minus disposal expense and the present value of
the predicted future cash flow. The Company estimates the recoverable amount on the individual asset item basis; whether it is
hard to estimate the recoverable amount on the individual asset item basis, determine the recoverable amount based on the asset
group that the assets belong to. The assets group is determined by whether the main cash flow generated by the Group is
independent from those generated by other assets or assets groups.
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When the recoverable amount of the assets or assets group is lower than its book value, the Company writes down the book
value to the recoverable amount, the write-down amount is accounted into the current income account and the assets impairment
provision is made.
For goodwill impairment test, the book value of goodwill generated by mergers is amortized through reasonable measures
since the purchase day to related asset groups; those cannot be amortized to related assets groups are amortized to related
combination of asset groups. The related asset groups or combination of asset groups refer to those that can benefit from the
synergistic effect of mergers and must not exceed to the reporting range determined by the Company.
When the impairment test is conducted, if there is sign of impairment to the asset group or combination of asset groups
related to goodwill, first perform impair test for asset group or combination of asset groups without goodwill and calculate the
recoverable amount and recognize the related impairment loss. Then conduct impairment test on those with goodwill, compare the
book value with recoverable amount. If the recoverable amount is lower than the book value, recognize the impairment loss of the
goodwill.
Once recognized, the asset impairment loss cannot be written back in subsequent accounting period.
The long-term deferred expenses shall be used to calculate the expenses that have occurred but should be borne by the
Company in the current and subsequent periods with an amortization period of more than one year. The Company's long-term
deferred expenses are amortized averagely during the benefit period.
See 16. Contract assets in Chapter VIII, V. Important Accounting Policies and Accounting Estimates for details.
(1) Accounting of operational leasing
① Basic salary of employees (salary, bonus, allowance, subsidy)
In the accounting period for which the staff and workers provide services, the Company shall confirm the actual short-term
remuneration as liabilities and shall account for the current income and loss, except as required or permitted by other accounting
standards.
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② Employee welfare
The employee benefits incurred by the Company shall be included in the current profit and loss or related asset costs
according to the actual amount incurred. Where the employee's benefit is non-monetary, it shall be measured on the basis of fair
value.
③ Social insurance premiums and housing accumulation funds such as health insurance premiums, work injury premiums,
birth insurance premiums, trade union funds and staff and education funds
The Company pays the medical insurance premiums, work injury insurance premiums, birth insurance premiums, etc. social
insurance premiums and housing accumulation funds for the staff and workers, as well as the union funds and the staff and
workers education funds according to the regulations, in the accounting period for which the staff and workers provide services,
the corresponding salary amount of the staff and workers, and confirms the corresponding liabilities, which are included in the
current profit and loss or related asset costs.
④ Short-term paid leave
The Company accumulates the salary of the employees who are absent from work with pay when the employees provide
service, thus increasing their future right of absence with pay. The Company confirms the salary of the employee related to the
absence of non-cumulative salary during the actual absence accounting period.
⑤ Short-term profit share program
If the profit-sharing plan meets the following conditions at the same time, the Company shall confirm the salary payable to
the staff and workers:
A. The legal or presumptive obligation of the enterprise to pay the remuneration of its employees as a result of past matters;
B. The amount of employee compensation obligations due to the profit sharing plan can be reliably estimated.
(2) Accounting of post-employment welfare
The Company's post-employment benefit plan is defined contribution plan. Defined contribution plans include basic
endowment insurance, unemployment insurance, etc. During the accounting period when employees provide services for them, the
Company shall recognize the deposit amount calculated according to the defined deposit plan as liabilities and include it in the
current profits and losses or related asset costs.
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(3) Accounting of dismiss welfare
If the Company provides termination benefits to employees, the employee compensation liabilities arising from the
termination benefits shall be recognized at the earliest of the following two and shall be included in the current profit and loss:
① An enterprise may not unilaterally withdraw the resignation benefits provided for by the dismissal plan or reduction
proposal;
② When the enterprise recognizes the costs or expenses related to the reorganization involving the payment of resignation
benefits.
(1) Recognition standards of anticipated liabilities
When responsibilities occurred in connection to contingent issues, and all of the following conditions are satisfied, they are
recognized as expectable liability in the balance sheet:
① This responsibility is a current responsibility undertaken by the Company;
② Execution of this responsibility may cause financial benefit outflow from the Company;
③ Amount of the liability can be reliably measured.
(2) Measurement of anticipated liabilities
Expected liabilities are initially measured at the best estimation on the expenses to exercise the current responsibility, and
with considerations to the relative risks, uncertainty, and periodic value of currency. On each balance sheet date, review the book
value of the estimated liabilities. Where there is conclusive evidence that the book value does not reflect the current best estimate,
the book value is adjusted to the current best estimate.
Disclosure of accounting policies adopted for revenue recognition and measurement by business type
(1) General principles
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Income is the total inflow of economic benefits formed in the daily activities of the Company, which will lead to the increase
of shareholders' equity and has nothing to do with the capital invested by shareholders.
The Company has fulfilled the performance obligation in the contract, that is, the revenue is recognized when the customer
obtains the control right of relevant goods. To obtain the control right of the relevant commodity means to be able to dominate the
use of the commodity and obtain almost all the economic benefits from it.
If there are two or more performance obligations in the contract, the Company will allocate the transaction price to each
single performance obligation according to the relative proportion of the separate selling price of the goods or services promised
by each single performance obligation on the start date of the contract, and measure the income according to the transaction price
allocated to each single performance obligation.
The transaction price refers to the amount of consideration that the Company is expected to be entitled to receive due to the
transfer of goods or services to customers, excluding the amount collected on behalf of a third party. When determining the
contract transaction price, if there is a variable consideration, the Company shall determine the best estimate of the variable
consideration according to the expected value or the most likely amount, and include it in the transaction price with the amount not
exceeding the accumulated recognized income when the relevant uncertainty is eliminated, which is most likely not to have a
significant reversal. If there is a significant financing component in the contract, the Company will determine the transaction price
according to the amount payable in cash when the customer obtains the control right of the commodity. The difference between
the transaction price and the contract consideration will be amortized by the effective interest method during the contract period. If
the interval between the control right transfer and the customer's payment is less than one year, the Company will not consider the
financing component Points.
If one of the following conditions is met, the performance obligation shall be performed within a certain period of time;
otherwise, the performance obligation shall be performed at a certain point of time:
① When the customer performs the contract in the Company, he obtains and consumes the economic benefits brought by the
Company's performance;
② Customers can control the goods under construction during the performance of the contract;
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③ The goods produced by the Company in the process of performance have irreplaceable uses, and the Company has the
right to collect money for the performance part that has been completed so far during the whole contract period.
For the performance obligations performed within a certain period of time, the Company shall recognize the revenue
according to the performance progress within that period, except that the performance progress cannot be reasonably determined.
The Company determines the progress of performance for the provision of services on the basis of the input (or output) method.
When the progress of performance cannot be reasonably determined, if the cost incurred by the Company is expected to be
compensated, the revenue shall be recognized according to the amount of cost incurred until the progress of performance can be
reasonably determined.
For the performance obligation performed at a certain time point, the Company recognizes the revenue at the time point when
the customer obtains the control right of relevant goods. In determining whether a customer has acquired control of goods or
services, the Company will consider the following signs:
① The Company has the right to receive payment for the goods or services, that is, the customer has the obligation to pay for
the goods;
② The Company has transferred the legal ownership of the goods to the customer, that is, the customer has the legal
ownership of the goods;
③ The Company has transferred the goods in kind to the customer, that is, the customer has possessed the goods in kind;
④ The Company has transferred the main risks and rewards of the ownership of the goods to the customer, that is, the
customer has obtained the main risks and rewards of the ownership of the goods;
⑤ The product has been accepted by the customer.
Sales return clause
For the sales with sales return clauses, when the customer obtains the control right of the relevant goods, the Company shall
recognize the revenue according to the amount of consideration it is entitled to obtain due to the transfer of the goods to the
customer, and recognize the amount expected to be returned due to the sales return as the estimated liability; at the same time, the
Company shall deduct the estimated cost of recovering the goods according to the book value of the expected returned goods at the
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time of transfer( The balance after deducting the value of the returned goods is recognized as an asset, that is, the cost of return
receivable, which is carried forward by deducting the net cost of the above assets according to the book value of the transferred
goods at the time of transfer. On each balance sheet date, the Company re estimates the return of future sales and re measures the
above assets and liabilities.
Warranty obligations
According to the contract and legal provisions, the Company provides quality assurance for the goods sold and the projects
constructed. For the guarantee quality assurance to ensure that the goods sold meet the established standards, the Company
conducts accounting treatment in accordance with the accounting standards for Business Enterprises No. 13 - contingencies. For
the service quality assurance which provides a separate service in addition to guaranteeing that the goods sold meet the established
standards, the Company takes it as a single performance obligation, allocates part of the transaction price to the service quality
assurance according to the relative proportion of the separate selling price of the goods and service quality assurance, and
recognizes the revenue when the customer obtains the service control right. When evaluating whether the quality assurance
provides a separate service in addition to assuring customers that the goods sold meet the established standards, the Company
considers whether the quality assurance is a statutory requirement, the quality assurance period, and the nature of the Company's
commitment to perform the task.
Customer consideration payable
If there is consideration payable to the customer in the contract, unless the consideration is to obtain other clearly
distinguishable goods or services from the customer, the Company will offset the transaction price with the consideration payable,
and offset the current income at the later time of confirming the relevant income or paying (or promising to pay) the customer's
consideration.
Contractual rights not exercised by customers
If the Company advances sales of goods or services to customers, the amount shall be recognized as liabilities first, and then
converted into income when relevant performance obligations are fulfilled. When the Company does not need to return the
advance payment and the customer may give up all or part of the contract rights, if the Company expects to have the right to obtain
the amount related to the contract rights given up by the customer, the above amount shall be recognized as income in proportion
according to the mode of the customer exercising the contract rights; otherwise, the Company only has the very low possibility of
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the customer requiring to perform the remaining performance obligations The relevant balance of the above liabilities is converted
into income.
Contract change
When the construction contract between the Company and the customer is changed:
① If the contract change increases the clearly distinguishable construction service and contract price, and the new contract
price reflects the separate price of the new construction service, the Company will treat the contract change as a separate contract
for accounting;
② If the contract change does not belong to the above-mentioned situation (1), and there is a clear distinction between the
transferred construction service and the non-transferred construction service on the date of contract change, the Company will
regard it as the termination of the original contract, and at the same time, combine the non-performance part of the original
contract and the contract change part into a new contract for accounting treatment;
③ If the contract change does not belong to the above situation (1), and there is no clear distinction between the transferred
construction services and the non-transferred construction services on the date of contract change, the Company will take the
contract change part as an integral part of the original contract for accounting treatment, and the resulting impact on the recognized
income will be adjusted to the current income on the date of contract change.
(2) Specific methods
The specific methods of revenue recognition of the Company are as follows:
① Commodity sales contract
The commodity sales contract between the company and the customer includes the performance obligation of transferring
curtain wall materials, screen door materials, electric energy, etc., which belongs to the performance obligation at a certain time
point.
Revenue from domestic sales of products is recognized at the time when the customer obtains the right of control of the goods
on the basis of comprehensive consideration of the following factors: the Company has delivered the products to the customer
according to the contract, the customer has accepted the goods, the payment for goods has been recovered or the receipt has been
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obtained, and the relevant economic benefits are likely to flow in, the main risks and rewards of the ownership of the goods have
been transferred, the legal ownership has been transferred;
The following conditions should be met for the recognition of export product revenue: the Company has declared the product
according to the contract, obtained the bill of lading, collected the payment for goods or obtained the receipt certificate, and the
relevant economic benefits are likely to flow in, the main risks and rewards of the ownership of goods have been transferred, and
the legal ownership of goods has been transferred.
② Service contract
The service contract between the Company and its customers includes the performance obligations of metro platform screen
door operation maintenance, curtain wall maintenance and property services. As the Company's performance at the same time, the
customers obtain and consume the economic benefits brought by the Company's performance, the Company takes it as the
performance obligation within a certain period of time and allocates it equally during the service provision period.
③ Engineering contract
The project contract between the Company and the customer includes the performance obligations of curtain wall project and
metro platform screen door project construction. As the customer can control the goods under construction in the process of the
Company's performance, the Company takes them as the performance obligations within a certain period of time, and recognizes
the income according to the performance progress, except that the performance progress cannot be reasonably determined. The
Company determines the performance schedule of providing construction services according to the input method. The
performance schedule shall be determined according to the proportion of the actual contract cost to the estimated total contract
cost.
④ Real estate sales contract
The income of the Company's real estate development business is recognized when the control of the property is transferred
to the customer. The income is recognized when the customer obtains the physical ownership or legal ownership of the completed
property and the Company has obtained the current right of collection and is likely to recover the consideration. When confirming
the contract transaction price, if the financing component is significant, the Company will adjust the contract commitment
consideration according to the financing component of the contract.
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(3) Adoption of different business models for the same type of business involving different revenue recognition and
measurement methods
There is no difference in revenue recognition due to the adoption of different accounting policies for similar businesses.
Contract cost is divided into contract performance cost and contract acquisition cost.
The cost incurred by the Company in performing the contract shall be recognized as an asset when the following conditions
are met simultaneously:
The cost is directly related to a current or expected contract, including direct labor, direct materials, manufacturing expenses
(or similar expenses), clearly borne by the customer, and other costs incurred only due to the contract;
② This cost increases the Company's future resources for fulfilling its performance obligations.
③ The cost is expected to be recovered.
If the incremental cost incurred by the Company to obtain the contract is expected to be recovered, it shall be recognized as
an asset as the contract acquisition cost.
The assets related to the contract cost shall be amortized on the same basis as the income from goods or services related to the
assets; however, if the amortization period of the contract acquisition cost is less than one year, the Company shall include it in the
current profit and loss when it occurs.
If the book value of the assets related to the contract cost is higher than the difference between the following two items, the
Company will make provision for impairment for the excess part and recognize it as the loss of asset impairment, and further
consider whether the estimated liabilities related to the loss contract should be made:
① The residual consideration expected to be obtained due to the transfer of goods or services related to the asset;
② The estimated cost to be incurred for the transfer of the relevant goods or services.
If the above provision for impairment of assets is subsequently reversed, the book value of the asset after reversal shall not
exceed the book value of the asset on the reversal date without provision for impairment.
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The contract performance cost recognized as an asset with an amortization period of no more than one year or one normal
business cycle at the time of initial recognition shall be listed in the "inventory" item, and the amortization period of no more than
one year or one normal business cycle at the time of initial recognition shall be listed in the "other non-current assets" item.
The contract acquisition cost recognized as an asset shall be listed in the item of "other current assets" when the amortization
period does not exceed one year or one normal business cycle at the time of initial recognition, and listed in the item of "other non-
current assets" when the amortization period exceeds one year or one normal business cycle at the time of initial recognition.
(1) Government subsidy
Government subsidies are recognized when the following conditions are met:
① Requirements attached to government subsidies;
② The Company can receive government subsidies.
(2) Government subsidy
When a government subsidy is monetary capital, it is measured at the received or receivable amount. None monetary capital
is measured at fair value; if no reliable fair value available, recognized at RMB1.
(3) Recognition of government subsidies
① Assets-related
Government subsidies related to assets are obtained by the Company to purchase, build or formulate in other manners long-
term assets; or subsidies related to benefits. If the asset-related government subsidy is recognized as deferred gain, should be
recorded in gain and loss in the service life. Government subsidy measured at the nominal amount is accounted into current
income account. If the relevant assets are sold, transferred, scrapped or damaged before the end of their useful life, the unallocated
relevant deferred income balance shall be transferred to the profit and loss of the current period of disposition of the assets.
Gain-related government subsidy should be accounted as follows:
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The Company divides government subsidies into assets-related and earnings-related government subsidies. Gain-related
government subsidy should be accounted as follows:
Subsidy that will be used to compensate related future costs or losses should be recognized as deferred gain and recorded in
the gain and loss of the current report and offset related cost;
Subsidy that is used to compensate existing cost or loss should be recorded in the gain and loss of the current period or offset
related cost.
For government subsidies that include both asset-related and income-related parts, separate different parts for accounting
treatment; It is difficult to distinguish between the overall classification of government subsidies related to benefits.
Government subsidy related to routine operations should be recorded in other gains or offset related cost. Government
subsidy not related to routine operations should be recorded in non-operating income or expense.
③ Policy preferential loan discount
The policy-based preferential loan obtained has interest subsidy. If the government allocates the interest-subsidy funds to the
lending bank, the loan amount actually received will be used as the entry value of the loan, and the borrowing cost will be
calculated based on the loan principal and policy-based preferential interest rate.
If the government allocates the interest-bearing funds directly to the Group, discount interest will offset the borrowing costs.
④ Government subsidy refund
When a confirmed government subsidy needs to be returned, the book value of the asset is adjusted against the book value of
the relevant asset at initial recognition. If there is a related deferred income balance, the book balance of the related deferred
income is written off and the excess is credited to the current profit or loss; In other cases, it is directly included in the current
profit and loss.
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The Company uses the temporary difference between the book value of the assets and liabilities on the balance sheet day and
the tax base and the liabilities method to recognize the deferred income tax. 26. Deferred income tax assets and deferred income
tax liabilities
(1) Deferred income tax assets
For deductible temporary discrepancies, deductible losses and tax offsets that can be carried forward for future years, the
impact on income tax is calculated at the estimated income tax rate for the transfer-back period and the impact is recognized as
deferred income tax assets, provided that the Company is likely to obtain future taxable income for deductible temporary
discrepancies, deductible losses and tax offsets.
At the same time, the impact on income tax of deductible temporary discrepancies resulting from the initial recognition of
assets or liabilities in transactions or matters with the following characteristics is inconclusive as deferred income tax assets:
A. The transaction is not a business combination;
B. the transaction is not a merger and the transaction does not affect the accounting profit or taxable proceeds;
However, for individual transactions that simultaneously meet the above two conditions and result in equal taxable temporary
differences and deductible temporary differences upon initial recognition of assets and liabilities, the exemption from initial
recognition of deferred tax liabilities and deferred tax assets does not apply. For taxable temporary differences and deductible
temporary differences arising from the initial recognition of assets and liabilities in such transactions, the Company recognizes the
corresponding deferred tax liabilities and deferred tax assets at the time of the transaction.
In the event of temporary discrepancy of deductible investment related to subsidiaries, joint ventures and joint ventures, and
meeting the following two conditions, the amount of impact (talent) on income tax shall be deemed as deferred income tax assets:
A. Temporary discrepancies are likely to be reversed in the foreseeable future;
B. In the future, it is likely to obtain taxable income that can be used to offset the deductible temporary differences;
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On the balance sheet date, if there is conclusive evidence that sufficient taxable income is likely to be obtained in the future to
offset the deductible temporary differences, the deferred income tax assets that have not been recognized in the previous period are
recognized.
On the balance sheet day, the Company re-examines the book value of the deferred income tax assets. If it is unlikely to have
adequate taxable proceeds to reduce the benefits of the deferred income tax assets, less the deferred income tax assets' book value.
When there are adequate taxable proceeds, the lessened amount will be reversed.
(2) Deferred income tax assets
All provisional differences in taxable income of the Company shall be measured on the basis of the estimated income tax rate
for the period of transfer-back and shall be recognized as deferred income tax liabilities, except that:
At the same time, the impact on income tax of deductible temporary discrepancies resulting the initial recognition of assets or
liabilities in transactions or matters with the following characteristics is inconclusive as deferred income tax Liabilities:
A. Initial recognition of goodwill;
B. Initial recognition of goodwill, or of assets or liabilities generated in transactions with the following features: the
transaction is not a merger and the transaction does not affect the accounting profit or taxable proceeds;
② In the event of temporary discrepancy of deductible investment related to subsidiaries, Joint venture joint ventures, and
meeting the two conditions, the amount of impact (talent) on income tax shall be deemed as deferred income tax assets:
A. The Company is able to control the time of temporary discrepancy transfers;
B Temporary discrepancies are likely to be reversed in the foreseeable future;
(3) Deferred income tax assets
(1) Deferred income tax liabilities or assets associated with enterprise consolidation
Temporary difference of taxable tax or deductible temporary difference generated by enterprise merger under non-same
control. When deferred income tax liability or deferred income tax asset is recognized, related deferred income tax expense (or
income) is usually adjusted as recognized goodwill in enterprise merger.
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② Amount of shares paid and accounted as owners' equity
Except for the adjustment goodwill generated by mergers or deferred income tax related to transactions or events directly
accounted into the owners' equity, income tax is accounted as income tax expense into the current gain/loss account. The effects of
temporary discrepancy on income tax include the following: Other integrated benefits such as fair value change of financial assets
available for sale, retroactive adjustment of accounting policy changes or retroactive restatement of accounting error correction
discrepancy to adjust the initial retained income, and mixed financial instruments including liabilities and equity.
③ Compensation for losses and tax deductions
A. Compensable losses and tax deductions from the Company's own operations
Deductible losses refer to the losses calculated and determined in accordance with the provisions of the tax law that are
allowed to be made up with the taxable income of subsequent years. The uncovered losses (deductible losses) and tax deductions
that can be carried forward in accordance with the tax law are treated as deductible temporary differences. When it is expected that
sufficient taxable income is likely to be obtained in the future period when it is expected to be available to make up for losses or
tax deductions, the corresponding deferred income tax assets are recognized within the limit of the taxable income that is likely to
be obtained, while reducing the current period Income tax expense in the income statement.
B. Compensable uncovered losses of the merged company due to business merger
In a business combination, if the Company obtains the deductible temporary difference of the purchased party and does not
meet the deferred income tax asset recognition conditions on the purchase date, it shall not be recognized. Within 12 months after
the purchase date, if new or further information is obtained indicating that the relevant conditions on the purchase date already
exist, and the economic benefits brought about by the temporary difference are expected to be deducted on the purchase date,
confirm the relevant delivery. Deferred income tax assets, while reducing goodwill, if the goodwill is not enough to offset, the
difference is recognized as the current profit and loss; except for the above circumstances, the deferred tax assets related to the
business combination are recognized and included in the current profit and loss.
④Temporary difference caused by merger offset
If there is a temporary difference between the book value of assets and liabilities in the consolidated balance sheet and the
taxable basis of the taxpayer due to the offset of the unrealized internal sales gain or loss, the deferred income tax asset or the
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deferred income tax liability is confirmed in the consolidated balance sheet, and the income tax expense in the consolidated profit
statement is adjusted, with the exception of the deferred income tax related to the transaction or event directly included in the
owner's equity and the merger of the enterprise.
⑤ Share payment settled by equity
If the tax law provides for allowable per-tax deduction of expenses related to share payment, within the period for which the
cost and expense are recognized in accordance with the accounting standards, the Company shall calculate the tax basis and
temporary discrepancy based on the estimated per-tax deduction amount at the end of the accounting period and confirm the
relevant deferred income tax if it meets the conditions for confirmation. Of these, the amount that can be deducted before tax in the
future exceeds the cost related to share payment recognized in accordance with the accounting standards, and the excess income
tax shall be directly included in the owner's equity.
⑥ Dividends related to financial instruments classified as equity instruments
For financial instruments classified as equity instruments where the Company is the issuer, any dividend expenditure that is
deductible for corporate income tax purposes according to tax policy is recognized for its income tax impact when the dividends
payable is recognized. If the distributed profits originate from transactions or events previously affecting profit or loss, the income
tax impact of such dividends is included in the current profit or loss. If the distributed profits originate from transactions or events
previously recognized in equity, the income tax impact of such dividends is included in equity items.
(4) Basis for presentation of deferred tax assets and deferred tax liabilities on a net basis
The deferred income tax assets and deferred income tax liabilities of the company are presented as a net amount after
offsetting when the following conditions are met simultaneously:
① The Company has a legal right to offset current income tax assets and current income tax liabilities on a net basis.
The deferred income tax assets and deferred income tax liabilities are related to income taxes levied by the same tax authority
on the same taxable entity, or are related to income taxes levied by different tax authorities but the significant deferred income tax
assets and deferred income tax liabilities will be settled on a net basis for current income taxes or simultaneous acquisition of
assets and settlement of liabilities within each future period in which the related taxable entity intends to settle the current income
tax assets and liabilities on a net basis.
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(1) Identification of lease
On the commencement date of the contract, the company evaluates whether the contract is a lease or includes a lease. If one
party in the contract transfers the right to control the use of one or more identified assets within a certain period in exchange for
consideration, the contract is a lease or includes a lease. In order to determine whether the contract transfers the right to control the
use of the identified assets within a certain period, the company evaluates whether the customers in the contract have the right to
obtain almost all the economic benefits arising from the use of the identified assets during the use period, and have the right to
dominate the use of the identified assets during the use period.
(2) Separate identification of lease
If the contract includes multiple separate leases at the same time, the company will split the contract and conduct accounting
treatment for each separate lease. If the following conditions are met at the same time, the right to use the identified asset constitutes
a separate lease in the contract: ① the lessee can profit from using the asset alone or together with other easily available resources;
② The asset is not highly dependent or highly related to other assets in the contract.
(3) Accounting treatment method of the Company as lessee
On the beginning date of the lease term, the Company recognizes the lease with a lease term of no more than 12 months and
excluding the purchase option as a short-term lease; When a single leased asset is a brand-new asset, the lease with lower value is
recognized as a low value asset lease. If the Company sublets or expects to sublet the leased assets, the original lease is not
recognized as a low value asset lease.
For all short-term leases and low value asset leases, the Company will record the lease payment amount into the relevant asset
cost or current profit and loss according to the straight-line method (or other systematic and reasonable methods) in each period of
the lease term.
In addition to the above short-term leases and low value asset leases with simplified treatment, the Company recognizes the
right to use assets and lease liabilities for the lease on the beginning date of the lease term.
① Use right assets
The term "right to use assets" refers to the right of the lessee to use the leased assets during the lease term.
At the beginning of the lease term, the right of use assets is initially measured at cost. This cost includes:
The initial measurement amount of lease liabilities;
For the lease payment paid on or before the beginning of the lease term, if there is lease incentive, the relevant amount of lease
incentive enjoyed shall be deducted;
Initial direct expenses incurred by the lessee;
The estimated cost incurred by the lessee for dismantling and removing the leased assets, restoring the site where the leased
assets are located or restoring the leased assets to the state agreed in the lease terms. The Company recognizes and measures the cost
in accordance with the recognition standards and measurement methods of estimated liabilities. See 28. Estimated liabilities in
Chapter VIII, V. important accounting policies and accounting estimates for details. If the above costs are incurred for the production
of inventories, they will be included in the cost of inventories.
Depreciation of right of use assets is accrued by using the straight-line method. If it can be reasonably determined that the
ownership of the leased asset will be obtained at the expiration of the lease term, the depreciation rate shall be determined according
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to the asset category of the right to use and the estimated net residual value rate within the expected remaining service life of the
leased asset; If it is impossible to reasonably determine that the ownership of the leased asset will be obtained at the expiration of the
lease term, the depreciation rate shall be determined according to the asset category of the right of use within the shorter of the lease
term and the remaining service life of the leased asset.
② Lease liabilities
The lease liabilities are initially measured Company shall according to the present value of the unpaid lease payments at the
beginning of the lease term. The lease payment includes the following five items:
Fixed payment amount and substantial fixed payment amount. If there is lease incentive, the relevant amount of lease incentive
shall be deducted;
Variable lease payments depending on index or ratio;
The exercise price of the purchase option, provided that the lessee reasonably determines that the option will be exercised;
The amount to be paid for exercising the option to terminate the lease, provided that the lease term reflects that the lessee will
exercise the option to terminate the lease;
The amount expected to be paid according to the residual value of the guarantee provided by the lessee.
When calculating the present value of lease payments, the implicit interest rate of the lease is used as the discount rate. If the
implicit interest rate of the lease cannot be determined, the incremental borrowing interest rate of the company is used as the discount
rate. The difference between the lease payment amount and its present value is regarded as unrecognized financing expenses, and the
interest expenses are recognized according to the discount rate of the present value of the lease payment amount during each period
of the lease term and included in the current profit and loss. The amount of variable lease payments not included in the measurement
of lease liabilities shall be included in the current profit and loss when actually incurred.
After the beginning date of the lease term, when the actual fixed payment amount changes, the expected payable amount of the
guaranteed residual value changes, the index or ratio used to determine the lease payment amount changes, the evaluation results or
actual exercise of the purchase option, renewal option or termination option changes, the Company remeasures the lease liability
according to the present value of the changed lease payment amount, And adjust the book value of the right to use assets accordingly.
(4) Accounting treatment method of the Company as lessor
On the lease commencement date, the Company classifies leases that have substantially transferred almost all the risks and
rewards related to the ownership of the leased assets as financial leases, and all other leases are operating leases.
① Operating lease
The Company recognizes lease receipts as rental income over the lease term on a straight-line basis (or another systematic and
rational method). Initial direct costs incurred are capitalized and amortized on the same basis as rental income recognition, with the
amortization charged to profit or loss over the relevant periods. The variable lease payments obtained by the Company related to
operating leases that are not included in the lease receipts are included in the current profits and losses when actually incurred.
② Finance lease
On the lease beginning date, the Company recognizes the financial lease receivables according to the net amount of the lease
investment (the sum of the unsecured residual value and the present value of the lease receipts not received on the lease beginning
date discounted according to the lease embedded interest rate), and terminates the recognition of the financial lease assets. During
each period of the lease term, the Company calculates and recognizes the interest income according to the interest rate embedded in
the lease.
The amount of variable lease payments obtained by the Company that are not included in the measurement of net lease
investment shall be included in the current profit and loss when actually incurred.
Interim Report 2026 of China Fangda Group Co., Ltd.
(5) Accounting treatment of lease change
① Change of lease as a separate lease
If the lease changes and meets the following conditions at the same time, the Company will treat the lease change as a separate
lease for accounting: a. the lease change expands the lease scope by increasing the use right of one or more leased assets; B. The
increased consideration is equivalent to the amount adjusted according to the conditions of the contract at the separate price for most
of the expansion of the lease scope.
② The lease change is not treated as a separate lease
A. The Company as lessee
On the effective date of the lease change, the Company reconfirmed the lease term and discounted the changed lease payment at
the revised discount rate to re-measure the lease liability. When calculating the present value of the lease payment after the change,
the implicit interest rate of the lease during the remaining lease period shall be used as the discount rate; If it is impossible to
determine the implicit interest rate of the lease for the remaining lease period, the incremental loan interest rate on the effective date
of the lease change shall be used as the discount rate.
The impact of the above lease liability adjustment shall be accounted for according to the following circumstances:
If the lease scope is reduced or the lease term is shortened due to the lease change, the book value of the right to use assets shall
be reduced, and the relevant gains or losses of partial or complete termination of the lease shall be included in the current profits and
losses;
For other lease changes, the book value of the right to use assets shall be adjusted accordingly.
The Company as leasor
If the operating lease is changed, the Company will treat it as a new lease for accounting from the effective date of the change,
and the amount of lease receipts received in advance or receivable related to the lease before the change is regarded as the amount of
new lease receipts.
If the change of financial lease is not accounted for as a separate lease, the Company will deal with the changed lease under the
following circumstances: if the change of lease takes effect on the lease commencement date and the lease will be classified as an
operating lease, the Company will account for it as a new lease from the effective date of lease change, and take the net lease
investment before the effective date of lease change as the book value of leased assets; If the lease change takes effect on the lease
commencement date, the lease will be classified as a financial lease, and the Company will conduct accounting treatment in
accordance with the provisions on modifying or renegotiating the contract.
(6) Sale and lease-back
The Company assesses and determines whether the asset transfer in the sale and leaseback transaction is a sale in accordance
with the provisions of 29. Income in Chapter VIII, V, Important accounting policies and accounting estimates.
① The Company as seller (lessee)
If the asset transfer in the sale and leaseback transaction does not belong to sales, the Company will continue to recognize the
transferred assets, recognize a financial liability equal to the transfer income, and conduct accounting treatment for the financial
liability in accordance with 11。 Financial instruments in Chapter VIII, V, Important accounting policies and accounting estimates.
If the asset transfer belongs to sales, the Company measures the right to use assets formed by sale and leaseback according to the part
of the book value of the original assets related to the right to use obtained by leaseback, and only recognizes the relevant gains or
losses on the rights transferred to the lessor.
② The Company as buyer (lessor)
Interim Report 2026 of China Fangda Group Co., Ltd.
If the asset transfer in the sale and leaseback transaction does not belong to sales, the company does not recognize the
transferred asset, but recognizes a financial asset equal to the transfer income, and carries out accounting treatment on the financial
asset in accordance with 11. Financial instruments in Chapter VIII, V. Important accounting policies and accounting estimates. If the
asset transfer belongs to sales, the Company shall conduct accounting treatment for asset purchase and asset lease in accordance with
other applicable accounting standards for business enterprises.
(1) Accounting of hedging
(1.1) Classification of inventories
The Company divides its hedging strategies into fair value hedges, cash flow hedges, and net investment hedges.
① Fair value hedge. It refers to hedging activities conducted to mitigate the risk of changes in the fair value of recognized
assets or liabilities, unrecognized firm commitments, or components of the aforementioned items. The fair value changes are
caused by specific risks that will impact the Company's profit or other comprehensive income.
① Cash flow hedging refers to the hedging of cash flow risk. The change in cash flow is derived from specific risks
associated with recognized assets or liabilities, expected transactions that are likely to occur, or with respect to the components of
the above-mentioned project and will affect the profits and losses of the enterprise.
③ Net investment hedge for overseas operations refers to hedging activities conducted to mitigate the foreign exchange risk
exposure of the net investment in overseas operations. The hedged risk in the net investment hedge is the translation difference
between the functional currency of the overseas operations and the reporting currency of the parent company.
(1.2) Hedging tools and hedged projects
Hedging means a financial instrument designated by the Company for the purpose of hedging, whose fair value or cash flow
variation is expected to offset the fair value or cash flow variation of the hedged item, including:
① Financial liabilities measured at fair value with variations accounted into current income account Check-out options can
only be used as a hedging tool if the option is hedged, including those embedded in a hybrid contract. Derivatives embedded in a
hybrid contract but not split cannot be used as separate hedging tools.
Interim Report 2026 of China Fangda Group Co., Ltd.
② Non-derivative financial assets or non-derivative financial liabilities that are measured at fair value and whose changes are
included in the current profit and loss, but designated as fair value and whose changes are included in the current profit and loss,
and their own credit risk changes caused by changes in fair value except for financial liabilities included in other comprehensive
income.
Own equity instruments are not financial assets or financial liabilities and cannot be used as hedging instruments.
A hedged item refers to an item that exposes the Company to the risk of changes in fair value or cash flow and is designated
as the hedged object and can be reliably measured. The Company designates the following individual projects, project portfolios or
their components as hedged projects:
① Confirmed assets or liabilities.
② Confirmed commitments that have not yet been confirmed. Confirmed commitment refers to a legally binding agreement
to exchange a specific amount of resources at an agreed price on a specific date or period in the future.
③ Expected transactions that are likely to occur. Anticipated transactions refer to transactions that have not yet been
committed but are expected to occur.
④ Net investment in overseas operations.
The above-mentioned project components refer to the parts that are less than the overall fair value or cash flow changes of the
project. The Company designates the following project components or their combinations as hedged items:
① The part of the change in fair value or cash flow (risk component) that is only caused by one or more specific risks in the
overall fair value or cash flow changes of the project. According to the assessment in a specific market environment, the risk
component should be able to be individually identified and reliably measured. The risk component also includes the part where the
fair value or cash flow of the hedged item changes only above or below a specific price or other variables.
② One or more selected contractual cash flows.
③ The component of the nominal amount of the project, that is, the specific part of the whole amount or quantity of the
project, may be a certain proportion of the whole project, or may be a certain level of the whole project. If a certain level includes
early repayment rights and the fair value of the early repayment rights is affected by changes in the risk of the hedge, the level
Interim Report 2026 of China Fangda Group Co., Ltd.
shall not be designated as the hedged item of the fair value hedge, but in the measurement of the hedged item except when the fair
value has included the influence of the prepayment right.
(1.3) Evaluation of hedging relationship
When the hedging relationship is initially specified, the Group officially specifies the related hedging relationships with
official documents recording the hedging relationships, risk management targets and hedging strategies. This document sets out
the hedging tools, hedged items, the nature of hedged risks, and the Company's assessment of hedged effectiveness. Hedging
means a financial instrument designated by the Company for the purpose of hedging, whose fair value or cash flow variation is
offset the fair value or cash flow variation of the hedged item, including: Such hedges are continuously evaluated on and after the
initial specified date to meet the requirements for hedging validity.
If the hedging instrument has expired, been sold, the contract is terminated or exercised (but the extension or replacement as
part of the hedging strategy is not treated as expired or contract termination), or the risk management objective changes, resulting
in hedging The relationship no longer meets the risk management objectives, or the economic relationship between the hedged
item and the hedging instrument no longer exists, or the impact of credit risk begins to dominate in the value changes caused by
the economic relationship between the hedged item and the hedging instrument, or when the hedge no longer meets the other
conditions of the hedge accounting method, the Company terminates the use of hedge accounting.
If the hedging relationship no longer meets the requirements for hedging effectiveness due to the hedging ratio, but the risk
management objective of the designated hedging relationship has not changed, the Company shall rebalance the hedging
relationship.
(1.4) Revenue the of revenue recognition and measurement
If the conditions for applying hedge accounting method are met, it shall be handled according to the following methods:
① Fair value hedging
Gains or losses arising from hedging instruments are recognized in the current period's income statement. If the hedging is
conducted for specified non-derivative equity investments (or components thereof) measured at fair value with changes in fair
value recognized in other comprehensive income, gains or losses from the hedging instruments are recognized in other
comprehensive income. Gains or losses arising from the hedged items due to the hedging risk exposure are recognized in the
Interim Report 2026 of China Fangda Group Co., Ltd.
income statement. At the same time, the carrying amount of the designated hedged items that are not measured at fair value is
adjusted. If the hedged item is a specified non-derivative equity investment (or component thereof) measured at fair value with
changes in fair value recognized in other comprehensive income, gains or losses resulting from the hedging risk exposure are
recognized in other comprehensive income, and the carrying amount of the hedged item has already been measured at fair value
and does not require adjustment.
Regarding fair value hedges related to financial instruments (or components thereof) measured at amortized cost, any
adjustments made to the carrying amount of the hedged item are amortized using the effective interest rate recalculated from the
date of the commencement of amortization and recognized in the income statement. The amortization date for adjustments should
begin from the adjustment date and should not be later than the point at which hedging gains and losses are adjusted upon
termination of the hedged item. For hedged items that are financial assets (or components thereof) measured at fair value with
changes in fair value recognized in other comprehensive income, the accumulated hedging gains or losses should be amortized in
the same manner and recognized in the income statement. However, the carrying amount of the financial assets (or components
thereof) should not be adjusted.
For hedged items that are unrecognized firm commitments (or components thereof), the cumulative fair value changes caused
by the hedging risk after the hedging relationship is designated should be recognized as an asset or liability. The related gains or
losses should be recognized in the income statement. When fulfilling a firm commitment and acquiring an asset or assuming a
liability, the initial recognized amount of the asset or liability should be adjusted to include the cumulative fair value changes of
the designated hedged item that have been recognized.
② Cash flow hedge
The part of hedging tool gains or losses that is valid for hedging is recognized as other comprehensive income as a cash flow
hedging reserve, and the part that is invalid for hedging (that is, other gains or losses after deducting other comprehensive income),
are counted Into the current profit and loss. The amount of cash flow hedging reserve is determined according to the lower of the
absolute amounts of the following two items: ①accumulated gains or losses of hedging instruments since the hedging. The
amount in the effective arbitrage is recognized by the accumulative gains or losses from the starting of arbitrage and accumulative
changes to the current value of future forecast cash flows from the start of arbitrage.
If the expected transaction of the hedged asset is subsequently recognized as a non-financial asset or non-financial liability, or
if the expected transaction of the non-financial asset or non-financial liability forms a defined commitment to the applicable fair
Interim Report 2026 of China Fangda Group Co., Ltd.
value hedge accounting, the amount of the cash flow hedge reserve originally recognized in the other consolidated income is
transferred out to account for the initial recognized amount of the asset or liability. For the remaining cash flow hedges, during the
same period when the expected cash flow to be hedged affects the profit and loss, if the expected sales occur, the cash flow hedge
reserve recognized in other comprehensive income is transferred out and included in the current profit and loss.
③ Net investment in overseas operations hedge
For hedging of foreign operation net investments, the portion of gains or losses from the hedging instruments that qualify as
effective hedges is directly recognized in other comprehensive income. The portion of gains or losses from the hedging
instruments that do not qualify as effective hedges is recognized in the income statement. Upon disposal of the foreign operation,
the previously recognized gains or losses from the hedging instruments reflected in other comprehensive income are reclassified to
the income statement.
(2) Measurement of Fair Value
Fair value refers to the amount of asset exchange or liabilities settlement by both transaction parties familiar with the situation
in a fair deal on a voluntary basis.
The Company measures the fair value of related assets or liabilities at the prices in the main market. If there is no major
market, the Company measures the fair value of the relevant assets or liabilities at the most favorable market prices. The Group
uses assumptions that market participants use to maximize their economic benefits when pricing the asset or liability.
The main market refers to the market with the highest transaction volume and activity of the related assets or liabilities. The
most favorable market means the market that can sell the related assets at the highest amount or transfer the related liabilities at the
lowest amount after considering the transaction cost and transportation cost.
For financial assets or liabilities in an active market, The Company determines their fair value based on quotations in the
active market. If there is no active market, the Company uses evaluation techniques to determine the fair value.
For the measurement of non-financial assets at fair value, the ability of market participants to use the assets for optimal
purposes to generate economic benefits, or the ability to sell the assets to other market participants that can be used for optimal
purposes to generate economic benefits.
Interim Report 2026 of China Fangda Group Co., Ltd.
① Valuation technology
The Company adopts valuation techniques that are applicable in the current period and are supported by sufficient data and
other information. The valuation techniques used mainly include market method, income method and cost method. The Company
uses a method consistent with one or more of the valuation techniques to measure fair value. If multiple valuation techniques are
used to measure fair value, the reasonableness of each valuation result shall be considered, and the fair value shall be selected as
the most representative of fair value under the current circumstances. The amount of value is regarded as fair value.
The Company equipment are applicable in the current circumstances and have sufficient available data and other information
to support the use of the relevant observable input values prioritized. Unobservable input values are used only when the observable
input value cannot be obtained or is not feasible. Observable input values are input values that can be obtained from market data.
The Group uses assumptions that market participants use to maximize their economic benefits when pricing the asset or liability.
Non-observable input values are input values that cannot be obtained from market data. The input value is obtained based on the
best information available on assumptions used by market participants in pricing the relevant asset or liability.
②Fair value hierarchy
This company divides the input value used in fair value measurement into three levels, and first uses the first level input value,
then uses the second level input value, and finally uses the third level input value. First level: quotation of same assets or liabilities
in an active market (unadjusted) The second level input value is a directly or indirectly observable input value of the asset or
liability in addition to the first level input value. The input value of the third level is the unobservable input value of the related
asset or liability.
(3) Significant accounting judgment and estimate
The Company continuously reviews significant accounting judgment and estimate adopted for the reasonable forecast of
future events based on its historical experience and other factors. Significant accounting judgment and assumptions that may lead
to major adjustment of the book value of assets and liabilities in the next accounting year are listed as follows:
Classification of financial assets
The major judgments involved in the classification of financial assets include the analysis of business model and contract
cash flow characteristics.
Interim Report 2026 of China Fangda Group Co., Ltd.
The company determines the business mode of managing financial assets at the level of financial asset portfolio, taking into
account such factors as how to evaluate and report financial asset performance to key managers, the risks that affect financial asset
performance and how to manage it, and how to obtain remuneration for related business managers.
When the company assesses whether the contractual cash flow of financial assets is consistent with the basic borrowing
arrangement, there are the following main judgments: whether the principal may change due to early repayment and other reasons
during the duration of the period or the amount of change; whether the interest Including the time value of money, credit risk,
other basic borrowing risks, and consideration of costs and profits. For example, does the amount paid in advance reflect only the
unpaid principal and the interest based on the unpaid principal, as well as the reasonable compensation paid for early termination
of the contract.
Measurement of expected credit losses of accounts receivable
The Company calculates the expected credit loss of accounts receivable through the risk exposure of accounts receivable
default and the expected credit loss rate, and determines the expected credit loss rate based on the default probability and the
default loss rate. When determining the expected credit loss rate, the Company uses internal historical credit loss experience and
other data, combined with current conditions and forward-looking information to adjust the historical data. When considering
forward-looking information, the indicators used by the Company include the risks of economic downturn, changes in the external
market environment, technological environment, and customer conditions. The Company regularly monitors and reviews
assumptions related to the calculation of expected credit losses.
Deferred income tax assets
If there is adequate taxable profit to deduct the loss, the deferred income tax assets should be recognized by all the unused tax
loss. This requires the management to make a lot of judgment to forecast the time and amount of future taxable profit and
determine the amount of the deferred tax assets based on the taxation strategy.
Income recognition
The Company's revenue from providing curtain wall construction and metro platform screen door installation services is
recognized over a period of time. The recognition of the income and profit of such engineering installation services depends on the
Company's estimation of the contract results and performance progress. If the actual amount of total revenue and total cost is
Interim Report 2026 of China Fangda Group Co., Ltd.
higher or lower than the estimated value of the management, it will affect the amount of revenue and profit recognition of the
Company in the future.
Engineering contract
The management shall make relevant judgment to confirm the income and expenses of project contracting business according
to the performance progress. If losses are expected to occur in the project contract, such losses shall be recognized as current
expenses. The management of the Company estimates the possible losses according to the budget of the project contract. The
Company determines the transaction price according to the terms of the contract and in combination with previous customary
practices, and considers the influence of variable consideration, major financing components in the contract and other factors.
During the performance of the contract, the Company continuously reviews the estimated total contract revenue and the estimated
total contract cost. When the initial estimate changes, such as contract changes, claims and awards, the estimated total contract
revenue and the estimated total contract cost are revised. When the estimated total contract cost exceeds the total contract revenue,
the main business cost and estimated liabilities shall be recognized according to the loss contract to be executed.
Estimate of fair value
The Company uses fair value to measure investment real estate and needs to estimate the fair value of investment real estate
at least quarterly. This requires the management to reasonably estimate the fair value of the investment real estate with the help of
valuation experts.
Development cost
For property that has been handed over with income recognized, but whose public facilities have not been constructed or not
been completed, the management will estimate the development cost for the part that has not been started according to the budget
to reflect the operation result of the property sales.
□ Applicable ? Inapplicable
(2) Changes in major accounting estimates
□ Applicable ? Inapplicable
Interim Report 2026 of China Fangda Group Co., Ltd.
(3) Implementation of new accounting standards adjustment for the first time starting from 2026, and implementation
of financial statement related items at the beginning of the year for the first time
□ Applicable ? Inapplicable
VI. Taxation
Tax Tax basis Tax rate (%)
VAT Taxable income 1, 3, 5, 6, 9, and 13
City maintenance and construction tax Taxable turnover 1, 5, 7
Enterprise income tax Taxable income See the following table
Education surtax Taxable turnover 3
Local education surtax Taxable turnover 2
For ad valorem assessment, the tax is
levied at 1.2% of the residual value after
a one-time deduction of 30% from the
Property tax 1.2, 12
original value of the property; for rental-
based assessment, the tax is levied at
Tax rates applicable for different tax payers
Tax payer Income tax rate
The Company 25%
Shenzhen Fangda Construction Technology Co., Ltd. (hereinafter Fangda Construction
Technology)
Fangda Zhiyuan Technology Co., Ltd. (hereinafter Fangda Zhiyuan) 15%
Fangda New Material (Jiangxi) Co., Ltd. (hereinafter Fangda Jiangxi New Material) 25%
Jiangxi Fangda Intelligent Manufacturing Technology Co., Ltd. (hereinafter referred to as Fangda
Intelligent Manufacturing Company)
Chengdu Fangda Construction Technology Co., Ltd. (hereinafter Fangda Chengdu Technology) 25%
Shanghai Fangda Zhijian Technology Co., Ltd. (hereinafter referred to as Fangda Shanghai
Zhijian company)
Shenzhen Fangda Yunzhu Technology Co., Ltd. (hereinafter Fangda Yunzhu) 15%
Dongguan Fangda New Material Co., Ltd. (hereinafter Fangda Dongguan New Material) 25%
Shanghai Fangda Jianzhi Technology Co., Ltd. (hereinafter Fangda Shanghai Jianzhi) 25%
Shenzhen Fangda Property Development Co., Ltd. (hereinafter Fangda Property Development) 25%
Shenzhen Fangda New Energy Co., Ltd. (hereinafter Fangda New Energy) 25%
Shenzhen Fangda Property Development Co., Ltd. (hereinafter Fangda Property Development) 25%
Jiangxi Fangda Property Development Co., Ltd. (hereinafter Fangda Jiangxi Property
Development)
Pingxiang Fangda Luxin New Energy Co., Ltd. (hereinafter Fangda Luxin New Energy) 25%
Nanchang Xinjian Fangda New Energy Co., Ltd. (hereinafter Fangda Xinjian New Energy) 20%
Dongguan Fangda New Energy Co., Ltd. (hereinafter Fangda Dongguan New Energy) 20%
Shenzhen Qianhai Kechuangyuan Software Co., Ltd (hereinafter Kechuangyuan Software) 15%
Fangda Zhiyuan Technology (Hong Kong) Co., Ltd, (Fangda Zhiyuan Hong Kong) 16.50%
Fangda Zhiyuan Technology (Wuhan) Co., Ltd, (Fangda Wuhan Zhiyuan) 25%
Fangda Zhiyuan Technology (Nanchang) Co., Ltd, (Fangda Nanchang Zhiyuan) 25%
Fangda Zhiyuan Railway Transportation Equipment (Dongguan) Co., Ltd. (hereinafter referred to
as Fangda Zhiyuan Dongguan)
General Rail Technology Private Limited 17%
Shihui International Holding Co., Ltd. (hereinafter Fangda Shihui International) 0.00%
Shenzhen Fangda Investment & Holding Co., Ltd. (hereinafter referred to as "Fangda Investment 25%
Interim Report 2026 of China Fangda Group Co., Ltd.
& Holding")
Fangda Australia Pty Ltd 30%
Shenzhen Fangda Yunzhi Technology Co., Ltd. (hereinafter Fangda Yunzhi) 25%
Shenzhen Zhongrong Litai Investment Co. Ltd. (Zhongrong Litai) 25%
Chengdu Fangda Curtain Wall Technology Co., Ltd. (hereinafter Fangda Chengdu Curtain Wall) 20%
Fangda Southeast Asia Co., Ltd. (hereinafter Fangda Southeast Asia) 20%
Fangda Construction Technology (Hong Kong) Co., Ltd. (hereinafter Fangda Construction
Technology Hong Kong)
Shenzhen Yunzhu Testing Technology Co., Ltd. (Hereinafter Fangda Yunzhu Testing) 20%
Shenzhen Fangda Jianchuang Technology Co., Ltd. (hereinafter Fangda Jianchuang) 25%
Shenzhen Fangda Construction Technology Co., Ltd. (hereinafter referred to as Fangda
Construction Technology Company)
Fangda Facade Singapore Pte Ltd (hereinafter referred to as Curtain Wall Singapore Company) 17%
FANGDA FACADE PHILIPPINES INC. (hereinafter referred to as Curtain Wall Philippines
Company)
GENERAL RAIL TECHNOLOGY PHILIPPINES, INC. (hereinafter referred to as Zhiyuan
Philippines Company)
FANGDA GULF DMCC (hereinafter referred to as Curtain Wall Gulf Company) 9%
FANGDA FACADE CONTRACTING L.L.C (hereinafter referred to as "Fangda Facade UAE") 9%
Fangda Facade (NSW) Pty Ltd (Curtain Wall Sydney Company) 30%
GLOBAL MEGA INTERNATIONAL HOLDINGS LIMITED (hereinafter referred to as
GLOBAL MEGA INTERNATIONAL)
(1) On December 26, 2024, the subsidiary Fangda Construction Technology obtained the certificate of high-tech enterprise
jointly issued by the Industry and Information Technology Bureau of Shenzhen Municipality, Shenzhen Finance Bureau, State
Administration of Taxation and Shenzhen Taxation Bureau. The certificate number is GR202444207062. Within three years after
obtaining the qualification of high-tech enterprise (from December 2024 to December 2027), the income tax will be levied at 15%.
(2) On December 26, 2024, the subsidiary Fangda Zhiyuan Technology Co., Ltd. obtained the certificate of high tech
enterprise jointly issued by the Industry and Information Technology Bureau of Shenzhen Municipality, Shenzhen Finance Bureau,
State Administration of Taxation and Shenzhen Taxation Bureau. The certificate number is GR202444201506. Within three years
after obtaining the qualification of high tech enterprise (from December 2024 to December 2027), the income tax will be levied at
(3) On November 15, 2023, the subsidiary Fangda Shanghai Zhijian obtained the certificate of high tech enterprise
GR202331002267 jointly issued by Shanghai Science and Technology Commission, Shanghai Finance Bureau and Shanghai
Taxation Bureau. Within three years (from November 2023 to November 2026) after obtaining the qualification of high tech
enterprise, the income tax will continue to be charged at 15%.
Interim Report 2026 of China Fangda Group Co., Ltd.
(4) On November 15, 2023, the subsidiary Fangda Yunzhu Technology Co., Ltd. obtained the certificate of high tech
enterprise jointly issued by Shenzhen Science and Technology Innovation Commission, Shenzhen Finance Bureau, State
Administration of Taxation and Shenzhen Taxation Bureau. The certificate number is GR202344205791. Within three years after
obtaining the qualification of high tech enterprise (from November 2023 to November 2026), the income tax will be levied at 15%.
(5) On October 29, 2025, the subsidiary Jiangxi Fangda Intelligent Manufacturing Technology Co., Ltd. obtained the High
and New Technology Enterprise Certificate jointly issued by the Department of Science and Technology of Jiangxi Province, the
Department of Finance of Jiangxi Province, and the Jiangxi Provincial Tax Service of the State Taxation Administration
(Certificate No.: GR202536000847). For a period of three years from the date of qualification as a high and new technology
enterprise (from October 2025 to October 2028), the corporate income tax rate applicable to the subsidiary is 15%.
(6) The subsidiary Kechuangyuan Software is an enterprise located in Qianhai Shenzhen Hong Kong Modern Service
Industry Cooperation Zone. Its main business meets the conditions of Preferential Catalogue of Enterprise Income Tax in Qianhai
Shenzhen Hong Kong Modern Service Industry Cooperation Zone (2021) (the Regulation shall be implemented from January 1,
(7) Pursuant to the "Announcement of the Ministry of Finance and the State Taxation Administration on Further
Implementation of Income Tax Preferential Policies for Small and Micro-sized Enterprises" (Announcement No. 13 of 2022), the
"Announcement on Income Tax Preferential Policies for Small and Micro-sized Enterprises and Self-employed Businesses"
(Announcement No. 6 of 2023), and the "Announcement of the Ministry of Finance and the State Taxation Administration on
Further Supporting the Development of Small and Micro-sized Enterprises and Self-employed Businesses with Respect to
Relevant Tax Policies" (Announcement No. 12 of 2023), certain subsidiaries qualified as small and micro-sized enterprises in
VII. Notes to the consolidated financial statements
In RMB
Item Closing balance Opening balance
Inventory cash: 697.90
Bank deposits 681,319,564.35 1,122,843,849.53
Other monetary capital 625,741,650.32 278,447,555.29
Total 1,307,061,214.67 1,401,292,102.72
Including: total amount deposited in 128,681,665.07 53,171,687.00
Interim Report 2026 of China Fangda Group Co., Ltd.
overseas
Others:
(1) The total restricted funds included in the ending balance of bank deposits amounted to RMB 41,122,581.22, comprising
judicially frozen funds of RMB 23,669,412.26, time deposit interest of RMB 25,776.40, earmarked funds in supervised accounts
of RMB 17,394,614.02, and other restricted funds of RMB 32,778.54. The restricted funds included in the ending balance of other
monetary funds amounted to RMB 604,676,854.88, primarily consisting of acceptance bill deposits, interim guarantee deposits,
letters of guarantee deposits, and funds in transit. In the preparation of the cash flow statement, the above-mentioned deposits and
other restricted deposits are not used as cash and cash equivalents.
(2) In addition, there are no other funds in the monetary funds at the end of the period that have restrictions on use and potential
recovery risks due to mortgages, pledges or freezing.
In RMB
Item Closing balance Opening balance
Financial assets measured at fair value
with variations accounted into current 31,505,968.50 410.06
income account
Of which: Bank wealth management
products and so on
Total 31,505,968.50 410.06
In RMB
Item Closing balance Opening balance
Futures contracts 1,459,950.00
Forward foreign exchange contract 899,846.25
Total 899,846.25 1,459,950.00
(1) Classification of notes receivable
In RMB
Item Closing balance Opening balance
Bank acceptance 19,729,508.99 57,188,013.94
Commercial acceptance 13,251,590.70 64,590,049.06
Total 32,981,099.69 121,778,063.00
(2) Disclosure by bad debt accrual method
In RMB
Closing balance Opening balance
Type
Remaining book value Bad debt provision Book value Remaining book value Bad debt provision Book value
Interim Report 2026 of China Fangda Group Co., Ltd.
Proportio Provision Proporti Provision
Amount Amount Amount Amount
n rate on rate
Notes receivable
with provision for
bad debts by
portfolio
Including:
Bank acceptance 19,729,508.99 55.03% 0.00% 19,729,508.99 57,188,013.94 42.12% 0.00% 57,188,013.94
Commercial
acceptance 17.82%
Total 35,855,014.35 100.00% 2,873,914.66 8.02% 32,981,099.69 135,779,716.10 100.00% 14,001,653.10 10.31% 121,778,063.00
Provision for bad debts by category: bank acceptance bills
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Bank acceptance 19,729,508.99 0.00 0.00%
Total 19,729,508.99 0.00
Group recognition basis:
See 11. Financial Tools in Chapter VIII, V, Important Accounting Policies and Accounting Estimates for the recognition
criteria and instructions for withdrawing bad debt reserves by portfolio
Provision for bad debts by category: commercial acceptance bills
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Commercial acceptance 16,125,505.36 2,873,914.66 17.82%
Total 16,125,505.36 2,873,914.66
Group recognition basis:
If the provision for bad debts on accounts receivable is being made based on the expected credit loss general model:
□ Applicable ? Inapplicable
(3) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Type Opening balance Written-back or Closing balance
Provision Canceled Others
recovered
Commercial
acceptance
Total 14,001,653.10 -11,127,738.44 2,873,914.66
Including significant recovery or reversal:
□ Applicable ? Inapplicable
Interim Report 2026 of China Fangda Group Co., Ltd.
(4) The Group has no endorsed or discounted immature receivable notes at the end of the period.
In RMB
Item De-recognized amount Not de-recognized amount
Bank acceptance 13,480,793.77
Commercial acceptance 3,238,878.02
Total 16,719,671.79
(1) Account age
In RMB
Age Closing balance of book value Opening balance of book value
Within 1 year (inclusive) 332,686,353.56 376,385,477.08
Over 3 years 765,599,381.90 726,362,340.42
Over 5 years 517,587,030.23 450,224,989.14
Total 1,384,359,983.78 1,487,966,419.53
(2) Disclosure by bad debt accrual method
In RMB
Closing balance Opening balance
Remaining book value Bad debt provision Remaining book value Bad debt provision
Type
Proporti Provisi Book value Proport Provisio Book value
Amount Amount Amount Amount
on on rate ion n rate
Account receivable for
which bad debt provision 194,516,057.75 14.05% 172,523,425.01 88.69% 21,992,632.74 194,500,400.69 13.07% 172,387,766.73 88.63% 22,112,633.96
is made by group
Including:
Customer 1 54,873,223.21 3.96% 54,873,223.21 54,873,223.21 3.69% 54,873,223.21 100.00%
%
Customer 2 45,267,082.58 3.27% 42,794,881.22 94.54% 2,472,201.36 45,507,085.02 3.06% 42,914,882.44 94.30% 2,592,202.58
Customer 3 38,886,078.45 2.81% 23,331,647.07 60.00% 15,554,431.38 38,886,078.45 2.61% 23,331,647.07 60.00% 15,554,431.38
Customer 4 19,977,913.64 1.44% 19,977,913.64 19,722,254.14 1.33% 19,722,254.14 100.00%
%
Customer 5 13,461,834.96 0.97% 13,461,834.96 13,461,834.96 0.90% 13,461,834.96 100.00%
%
Customer 6 9,915,000.00 0.72% 5,949,000.00 60.00% 3,966,000.00 9,915,000.00 0.67% 5,949,000.00 60.00% 3,966,000.00
Customer 7 7,096,421.00 0.51% 7,096,421.00 7,096,421.00 0.48% 7,096,421.00 100.00%
%
Other customers 5,038,503.91 0.36% 5,038,503.91 5,038,503.91 0.34% 5,038,503.91 200.00%
%
Account receivable for 1,189,843,926.03 85.95% 443,759,531.58 37.30% 746,084,394.45 1,293,466,018.84 86.93% 430,062,095.57 33.25% 863,403,923.27
Interim Report 2026 of China Fangda Group Co., Ltd.
which bad debt provision
is made by group
Including:
wall business receivables
screen door business 154,794,998.85 11.18% 42,935,596.60 27.74% 111,859,402.25 177,576,351.40 11.93% 38,295,527.37 21.57% 139,280,824.03
receivables
materials business 114,577,688.49 8.28% 4,331,027.98 3.78% 110,246,660.51 108,037,986.27 7.26% 4,269,005.77 3.95% 103,768,980.50
receivables
energy business 29,394,546.10 2.12% 1,469,735.10 5.00% 27,924,811.00 26,263,129.43 1.77% 1,313,156.47 5.00% 24,949,972.96
receivables
Commercial real estate 54,580,450.66 3.94% 3,572,337.00 6.55% 51,008,113.66 52,497,858.35 3.53% 3,902,959.38 7.43% 48,594,898.97
and other receivables
Total 1,384,359,983.78 100.00% 616,282,956.59 44.52% 768,077,027.19 1,487,966,419.53 602,449,862.30 40.49% 885,516,557.23
%
Provision for bad debts by individual item: individual provision
In RMB
Opening balance Closing balance
Name
Remaining book value Bad debt provision Remaining book value Bad debt provision Provision rate Reason
that full recovery of
receivables from these
customers is uncertain. In
accordance with the
prudence principle, the
Company has
individually provided for
impairment losses on
these accounts receivable.
Total 194,500,400.69 172,387,766.73 194,516,057.75 172,523,425.01
Category of bad debt provision assessed on a collective basis: Group 1: Curtain wall business receivables
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 153,083,794.58 7,654,856.10 5.00%
Interim Report 2026 of China Fangda Group Co., Ltd.
Over 7 years 124,896,254.33 124,896,254.33 100.00%
Total 836,496,241.93 391,450,834.90
Category of bad debt provision assessed on a collective basis: Group 2: Platform screen door business receivables
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 48,402,354.33 484,023.54 1.00%
Over 5 years 18,419,321.92 18,419,321.92 100.00%
Total 154,794,998.85 42,935,596.60
Category of bad debt provision assessed on a collective basis: Group 3: New materials business receivables
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 79,875,406.18 798,754.07 1.00%
Over 5 years 909,653.27 909,653.27 100.00%
Total 114,577,688.49 4,331,027.98
Category of bad debt provision assessed on a collective basis: Group 4: New energy business receivables
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 12,100,647.91 605,040.20 5.00%
Total 29,394,546.10 1,469,735.10
Category of bad debt provision assessed on a collective basis: Group 5: Commercial real estate and other receivables
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Less than 1 year 37,708,356.05 377,083.56 1.00%
Over 5 years 359,129.89 359,129.89 100.00%
Total 54,580,450.66 3,572,337.00
If the provision for bad debts on accounts receivable is being made based on the expected credit loss general model:
□ Applicable ? Inapplicable
Interim Report 2026 of China Fangda Group Co., Ltd.
(3) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Type Opening balance Written-back Closing balance
Provision Canceled Others
or recovered
Separate bad debt
provision
Provision for bad debts
by combination
Total 602,449,862.30 21,551,439.93 181,357.30 7,794,086.21 -257,097.87 616,282,956.59
The Company needs to comply with the disclosure requirements of the decoration and decoration industry in the Guidelines
for the Self-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.
Significant individual amounts of accounts receivable in the curtain wall and materials industry that have exceeded three
years in age
Accounts receivable aged over three Balance of provision for bad debts Whether there is a risk
Customer Reason of the age
years (RMB) (RMB) of recovery
Customer credit status
Customer 1 123,111,261.70 81,554,847.42 Yes
deteriorates
Customer credit status
Customer 2 54,873,223.21 54,873,223.21 Yes
deteriorates
Customer credit status
Customer 3 35,216,578.58 21,129,947.15 Yes
deteriorates
Customer credit status
Customer 4 30,990,545.96 10,846,691.09 Yes
deteriorates
Customer credit status
Customer 5 28,809,949.90 21,663,572.10 Yes
deteriorates
Customer credit status
Customer 6 28,793,219.55 28,491,561.21 Yes
deteriorates
Customer credit status
Customer 7 28,703,796.47 24,448,536.55 Yes
deteriorates
Customer 8 13,458,028.84 4,710,310.09 Long settlement cycle No
Customer 9 20,239,681.65 12,780,869.21 Long settlement cycle No
Customer credit status
Customer 10 18,764,370.73 18,764,370.73 Yes
deteriorates
Customer credit status
Customer 11 19,541,985.85 17,140,051.06 No
deteriorates
Customer credit status
Customer 12 16,492,469.99 9,383,535.37 Yes
deteriorates
Customer credit status
Customer 13 17,374,148.42 17,374,148.42 Yes
deteriorates
Customer 14 13,367,704.59 7,833,325.46 Long settlement cycle No
Customer credit status
Customer 15 13,461,834.96 13,461,834.96 Yes
deteriorates
Customer credit status
Customer 16 11,154,105.00 11,154,105.00 Yes
deteriorates
Customer 17 10,565,637.41 4,562,419.24 Long settlement cycle No
Total 484,918,542.81 360,173,348.27
Interim Report 2026 of China Fangda Group Co., Ltd.
(4) Written-off account receivable during the period
In RMB
Item Amount
Account receivable written off 7,794,086.21
Significant accounts receivable written off:
In RMB
Nature of
Writing-off Related
Entity accounts Amount Reason
procedure transaction
receivable
Zhongtian Urban
Development Group The customer underwent bankruptcy restructuring.
Approved
Guiyang Engineering Cash of RMB 300,000 and stocks valued at RMB
International receivables 394,625.60 were recovered, and the remaining
management
Financial Center Co., unrecovered accounts receivable were written off.
Ltd.
Total 6,972,056.21
(5) Accounts receivable and contract assets with the top-5 ending balances, grouped by party owed
In RMB
Percentage of Closing balance of
total ending provision for bad
Closing balance of
Closing balance of Closing balance of balance of debts on accounts
Entity accounts receivable
accounts receivable contract assets accounts receivable and
and contract assets
receivable and impairment of
contract assets contract assets
No.1 123,432,623.99 123,432,623.99 3.40% 81,635,188.00
No.2 30,753,651.67 56,884,964.06 87,638,615.73 2.42% 6,182,645.81
No.3 15,958,294.63 68,116,089.93 84,074,384.56 2.32% 17,300,742.94
No.4 8,967,200.00 66,626,539.51 75,593,739.51 2.08% 13,989,174.08
No.5 69,521,171.71 69,521,171.71 1.92% 2,085,635.15
Total 179,111,770.29 261,148,765.21 440,260,535.50 12.14% 121,193,385.98
(1) Contract assets
In RMB
Closing balance Opening balance
Item Remaining book Remaining book
Bad debt provision Book value Bad debt provision Book value
value value
Completed and unsettled
project funds that fail to
meet the collection
conditions
Quality guarantee deposit
that fails to meet the 285,174,625.10 25,003,699.03 260,170,926.07 332,521,906.40 27,924,265.40 304,597,641.00
collection conditions
Less: Contract assets shown 134,870,104.48 9,540,720.85 125,329,383.63 125,214,302.34 9,438,790.60 115,775,511.74
Interim Report 2026 of China Fangda Group Co., Ltd.
in other non-current assets
Total 2,108,974,887.63 208,621,679.21 1,900,353,208.42 2,214,339,118.85 216,247,967.42 1,998,091,151.43
(2) The amount and reason for the significant change in the book value during the reporting period
In RMB
Item Change Reason
Primarily attributable to contract assets related
Completed and unsettled project funds that fail to to engineering contracting contracts that met
-43,757,356.19
meet the collection conditions billing conditions during the year being
reclassified to accounts receivable.
Mainly attributable to the decrease in
Quality guarantee deposit that fails to meet the
-44,426,714.93 warranty deposits for which collection
collection conditions
conditions have not been met
Mainly due to the increase in warranty
Less: Contract assets shown in other non-current
assets
yet matured
Total -97,737,943.01 ——
(3) Disclosure by bad debt accrual method
In RMB
Closing balance Opening balance
Remaining book value Bad debt provision Remaining book value Bad debt provision
Type
Proporti Provision Book value Proporti Provisio Book value
Amount Amount Amount Amount
on rate on n rate
Separate bad
debt provision
Including:
Customer 1 4,531,356.49 0.21% 4,531,356.49 100.00% 4,520,033.57 0.20% 4,520,033.57 100.00% 0.00
Customer 2 1,683,276.51 0.08% 1,683,276.51 100.00% 1,683,276.51 0.08% 1,683,276.51 100.00% 0.00
Customer 3 755,465.43 0.04% 755,465.43 100.00% 1,011,124.93 0.05% 1,011,124.93 100.00% 0.00
Customer 4 1,777,917.87 0.08% 1,777,917.87 100.00% 1,777,917.87 0.08% 1,777,917.87 100.00% 0.00
Provision for
bad debts by 2,100,226,871.33 99.59% 199,873,662.91 9.52% 1,900,353,208.42 2,205,346,765.97 99.59% 207,255,614.54 9.40% 1,998,091,151.43
combination
Including:
Completed and
unsettled project
funds that fail to
meet the
collection
conditions
Quality
guarantee
deposit that fails
to meet the
collection
conditions
Total 2,108,974,887.63 100.00% 208,621,679.21 9.89% 1,900,353,208.42 2,214,339,118.85 100.00% 216,247,967.42 9.77% 1,998,091,151.43
Interim Report 2026 of China Fangda Group Co., Ltd.
Provision for bad debts by individual item: individual provision
In RMB
Opening balance Closing balance
Name Remaining book Bad debt Remaining book Bad debt
Provision rate Reason
value provision value provision
Due to certain
Customer 1 4,520,033.57 4,520,033.57 4,531,356.49 4,531,356.49 100.00%
customers of the
Company
Customer 2 1,683,276.51 1,683,276.51 1,683,276.51 1,683,276.51 100.00% experiencing
prolonged non-
payment,
Customer 3 1,011,124.93 1,011,124.93 755,465.43 755,465.43 100.00% material debt
defaults, and
bankruptcy
Customer 4 1,777,917.87 1,777,917.87 1,777,917.87 1,777,917.87 100.00%
reorganization,
the Company has
determined that
there is
uncertainty
regarding the full
recovery of
contract assets
related to these
customers. In
accordance with
Total 8,992,352.88 8,992,352.88 8,748,016.30 8,748,016.30 the prudence
principle, the
Company has
individually
provided
impairment
allowances for
the contract
assets of these
customers.
Category of bad debt provision assessed on a collective basis: Group 1: Completed but unsettled project payments not yet
meeting collection conditions
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Completed and unsettled project funds that
fail to meet the collection conditions
Total 1,950,677,816.14 185,166,150.16
Group recognition basis:
See 11. Financial Tools in Chapter VIII, V, Important Accounting Policies and Accounting Estimates for the recognition
criteria and instructions for withdrawing bad debt reserves by portfolio
Category of bad debt provision assessed on a collective basis: Group 2: Warranty deposits not yet meeting collection
conditions
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Quality guarantee deposit that 149,549,055.19 14,707,512.75 9.83%
Interim Report 2026 of China Fangda Group Co., Ltd.
fails to meet the collection
conditions
Total 149,549,055.19 14,707,512.75
Provision for bad debts based on general model of expected credit losses
□ Applicable ? Inapplicable
(4) Bad debt provision made, returned or recovered in the period
In RMB
Recovered or reversed Written off in the
Item Provision Reason
during the period current period
Separate bad debt
-244,336.58
provision
Provision for bad debts
-7,381,951.63
by combination
Total -7,626,288.21
(1) Presentation of receivables financing classification
In RMB
Item Closing balance Opening balance
Notes receivable 16,748,225.96 0.00
Total 16,748,225.96 0.00
(2) Disclosure by bad debt accrual method
In RMB
Closing balance Opening balance
Remaining book value Bad debt provision Remaining book value Bad debt provision
Type Book
Proportio Provision Book value Proportio Amou Provision
Amount Amount Amount value
n rate n nt rate
Including:
Provision for bad debts
by combination
Including:
Bank acceptance 16,748,225.96 100.00% 0.00 0.00% 16,748,225.96
Total 16,748,225.96 100.00% 0.00 0.00% 16,748,225.96
Provision for bad debts by category: bank acceptance bills
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Bank acceptance 16,748,225.96 0.00 0.00%
Total 16,748,225.96 0.00
Interim Report 2026 of China Fangda Group Co., Ltd.
(3) Receivables financing that has been endorsed or discounted by the Company and remains
outstanding as of the balance sheet date
In RMB
Item De-recognized amount Not de-recognized amount
Bank acceptance 10,230,878.72
Total 10,230,878.72
In RMB
Item Closing balance Opening balance
Other receivables 128,940,277.57 120,173,307.70
Total 128,940,277.57 120,173,307.70
(1) Other receivables
In RMB
By nature Closing balance of book value Opening balance of book value
Deposit and pledge paid 86,516,382.51 78,067,608.63
Construction borrowing and advanced
payment
Staff borrowing and petty cash 3,162,354.30 2,942,771.01
VAT refund receivable 494,021.58 527,217.36
Refundable advance payments 2,713,230.50
Others 15,499,110.63 10,806,871.89
Total 141,572,938.05 132,380,433.44
(2) Account age
In RMB
Age Closing balance of book value Opening balance of book value
Within 1 year (inclusive) 37,214,774.36 17,089,433.93
Over 3 years 99,181,700.41 96,974,373.74
Over 5 years 95,782,200.74 91,455,364.51
Total 141,572,938.05 132,380,433.44
(3) Disclosure by bad debt accrual method
? Applicable □ Inapplicable
Interim Report 2026 of China Fangda Group Co., Ltd.
In RMB
Closing balance Opening balance
Remaining book value Bad debt provision Remaining book value Bad debt provision
Type
Provisio Book value Proportio Provision Book value
Amount Proportion Amount Amount Amount
n rate n rate
Provision for
bad debts by 141,572,938.05 100.00% 12,632,660.48 8.92% 128,940,277.57 132,380,433.44 100.00% 12,207,125.74 9.22% 120,173,307.70
combination
Including:
First stage 125,790,123.68 88.85% 2,568,651.49 2.04% 123,221,472.19 114,617,240.74 86.59% 1,928,103.44 1.68% 112,689,137.30
Second stage 7,706,270.89 5.44% 3,181,507.25 41.28% 4,524,763.64 9,603,537.62 7.25% 3,379,335.58 35.19% 6,224,202.04
Third stage 8,076,543.48 5.70% 6,882,501.74 85.22% 1,194,041.74 8,159,655.08 6.16% 6,899,686.72 84.56% 1,259,968.36
Total 141,572,938.05 100.00% 12,632,660.48 8.92% 128,940,277.57 132,380,433.44 100.00% 12,207,125.74 9.22% 120,173,307.70
Provision for bad debts by category: Stage one
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
First stage 125,790,123.68 2,568,651.49 2.04%
Total 125,790,123.68 2,568,651.49
Category of bad debt provision assessed on a collective basis: Stage 2
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Second stage 7,706,270.89 3,181,507.25 41.28%
Total 7,706,270.89 3,181,507.25
Category of bad debt provision assessed on a collective basis: Stage 3
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Third stage 8,076,543.48 6,882,501.74 85.22%
Total 8,076,543.48 6,882,501.74
Provision for bad debts based on general model of expected credit losses
In RMB
First stage Second stage Third stage
Expected credit loss for
Bad debt provision Expected credit loss for Total
Expected credit losses the entire duration
the entire duration (no
in the next 12 months (credit impairment has
credit impairment)
occurred)
Balance on Thursday,
January 1, 2026
Balance on Thursday,
January 1, 2026 in the
current period
-- transferred to the
-2,512.92 2,512.92
second stage
-- transferred to the
-745.00 745.00
third stage
-- transferred back to 45,000.00 -45,000.00
Interim Report 2026 of China Fangda Group Co., Ltd.
second stage
Provision 644,883.38 -245,313.95 73,468.12 473,037.55
Canceled in the current
period
Other change 1,077.41 27.30 1,104.71
Balance on Tuesday,
June 30, 2026
Criteria for stage division and provision ratios for bad debts
New
Other Curtain wall Platform screen New energy Commercial real
Basis materials
receivables business door business business estate and others
business
Stage 1 Not due or due within 30 days 5.00% 1.00% 1.00% 1.00% 1.00%
Overdue for more than 30 days but no Provision is made based on the corresponding aging brackets of accounts receivable by
Stage 2
credit impairment has occurred business category, applying the respective provision ratios.
Overdue for more than 30 days and
Stage 3 Individual recognition
credit impairment has occurred
Changes in book balances with significant changes in the current period
□ Applicable ? Inapplicable
Bad debt provision made in the period:
In RMB
Change in the period
Type Opening balance Written-back or Closing balance
Provision Write-off Others
recovered
Provision for
bad debts by 12,207,125.74 473,037.55 46,398.10 1,104.71 12,632,660.48
combination
Total 12,207,125.74 473,037.55 46,398.10 1,104.71 12,632,660.48
In RMB
Item Amount
Other receivable written off 46,398.10
In RMB
Balance of bad debt
Entity By nature Closing balance Age Percentage (%) provision at the end of the
period
Margin and current 70,062,675.83 Over 5 years 49.49% 700,626.76
Shenzhen Yikang Real Estate Co. Ltd.
account 6,000,000.00 3-4 years 4.24% 60,000.00
China Merchants Futures Brokerage
Deposit 13,343,381.75 Less than 1 year 9.43% 667,169.09
Co., Ltd.
Shenzhen Dakang Joint-Stock Deposit 8,000,000.00 Over 5 years 5.65% 80,000.00
Interim Report 2026 of China Fangda Group Co., Ltd.
Cooperative Company
Shenzhen Ganshang Joint Investment
Others 3,791,089.25 Over 5 years 2.68% 2,597,047.51
Co., Ltd.
Shenzhen Tongmeng Decoration Reimbursable
Technology Co., Ltd. expenses
Total 103,670,377.33 73.23% 4,599,489.46
Others:
The Company needs to comply with the disclosure requirements of the decoration and decoration industry in the Guidelines
for the Self-discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.
Significant individual amounts of other accounts receivable in the curtain wall and materials industry that have exceeded
three years in age
Balance of other
Balance of provision Whether there is a risk
Customer receivables older than Reason of the age
for bad debts (RMB) of recovery
three years (RMB)
Customer credit status
Yes
Customer 1 1,767,770.51 1,767,770.51 deteriorates
Customer 2 1,086,520.17 1,086,520.17 Performance bond No
Total 2,854,290.68 2,854,290.68
(1) Account ages of prepayments
In RMB
Closing balance Opening balance
Age
Amount Proportion Amount Proportion
Less than 1 year 52,984,546.06 87.69% 15,477,666.96 75.85%
Over 3 years 3,069,636.10 5.08% 3,056,026.16 14.97%
Total 60,424,946.92 20,407,968.16
At the end of the period, there are no important prepayments exceeding one year in age.
(2) Balance of top 5 prepayments at the end of the period
The aggregate amount of the top five prepayments by payee at the end of the current period was RMB 31,346,436.30,
accounting for 51.88% of the total ending balance of prepayments.
Whether the Company needs to comply with disclosure requirements of the real estate industry.
Yes
(1) Classification of inventories
The Company needs to comply with the disclosure requirements of the real estate industry in the Guidelines for the Self-
Interim Report 2026 of China Fangda Group Co., Ltd.
discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.
Classified by nature:
In RMB
Closing balance Opening balance
Provision for Provision for
inventory inventory
depreciation or depreciation or
Item Remaining book Remaining book
contract Book value contract Book value
value value
performance cost performance cost
impairment impairment
provision provision
Development cost 202,021,658.94 202,021,658.94 202,021,658.94 202,021,658.94
Development
products
Contract
performance costs
Raw materials 136,270,872.37 136,270,872.37 111,622,459.00 111,622,459.00
Product in process 52,351,127.50 52,351,127.50 100,255,413.90 100,255,413.90
Finished goods in
stock
OEM materials 16,129,692.95 16,129,692.95 19,692,260.21 19,692,260.21
Goods delivered 1,112,302.16 1,112,302.16 27,530,506.85 27,530,506.85
Materials in transit 3,644,377.69 3,644,377.69 7,375,501.87 7,375,501.87
Total 700,760,851.89 23,008,606.37 677,752,245.52 708,364,633.30 23,306,214.74 685,058,418.56
Development cost and capitalization rate of its interest are disclosed as follows:
In RMB
Transfer
Increase
red to Accumu Including:
Other (develop
develop lative capitalized
Estimated finish Estimated total decreas ment Capital
Item Starting time Opening balance ment Closing balance capitaliz interest for
time investment e in this cost) in source
product ed the current
period this
in this interest period
period
period
Own
Dakang Village funds
Project in 1 December 2028 December 31, 2034 3,600,000,000.00 202,021,658.94 202,021,658.94 and
Shenzhen bank
loans
Total 3,600,000,000.00 202,021,658.94 202,021,658.94
Disclose the main project information of "Development Products" according to the following format:
In RMB
Including:
Accumulative capitalized interest
Item Completion time Opening balance Increase Decrease Closing balance
capitalized interest for the current
period
Phase I of Fangda
December 29, 2016 15,532,505.97 15,532,505.97 549,009.88
Town
Nanchang Fangda
April 27, 2021 101,110,656.71 1,330,357.07 99,780,299.64 3,870,214.08
Center
Total 116,643,162.68 1,330,357.07 115,312,805.61 4,419,223.96
Interim Report 2026 of China Fangda Group Co., Ltd.
(2) Provision for inventory depreciation and contract performance cost impairment provision
The inventory depreciation provision is disclosed as follows:
Classified by nature:
In RMB
Increase in this period Decrease in this period
Opening
Item Recover or Closing balance Remarks
balance Provision Others Others
write-off
Development
products
Total 23,306,214.74 297,608.37 23,008,606.37
Classification by major project:
In RMB
Increase in this period Decrease in this period
Item Opening balance Recover or Closing balance Remarks
Provision Others Others
write-off
Nanchang Fangda
Center
Total 23,306,214.74 297,608.37 23,008,606.37
(3) Capitalization rate of interest in the closing inventory balance
As of June 30, 2026, the capitalized amount of borrowing costs included in inventory balances was RMB4,419,223.96. The
calculation basis and criteria for borrowing costs are disclosed in Note 22, "Borrowing Costs," under Section V, "Significant
Accounting Policies and Accounting Estimates," of Part VIII.
In RMB
Item Closing balance Opening balance
Reclassification of VAT debit balance 245,513,468.60 280,607,689.94
Overpayment and prepayment of income
tax
Other prepaid taxes 4,482.73
Payment to be collected on behalf of
suppliers
Total 261,435,012.93 296,646,964.92
In RMB
Change (+,-) Balance of
Beginning
impairment
Investment Other Cash
balance of Other Closing book
Increase Decr Impair
Invested entity Opening book value provision at
gain and loss miscell dividend
impairment equity Others value
d eased ment
the end of
recognized aneous or profit
provisions change
investme inves provisi
the period
using the income announc
Interim Report 2026 of China Fangda Group Co., Ltd.
nt tment equity adjust ed on
method ment
Shenzhen Ganshang
Joint Investment 2,403,252.46 150.48 2,403,402.94
Co., Ltd.
Jiangxi Business
Innovative Property 30,585,392.17 -35,409.59 30,549,982.58
Joint Stock Co., Ltd.
Subtotal 32,988,644.63 -35,259.11 32,953,385.52
Total 32,988,644.63 -35,259.11 32,953,385.52
The recoverable amount is determined as the net amount after deducting the disposal costs from the fair value.
□ Applicable ? Inapplicable
The recoverable amount is determined based on the present value of estimated future cash flows.
□ Applicable ? Inapplicable
In RMB
Item Closing balance Opening balance
Financial assets measured at fair value with variations
accounted into current income account
Total 6,010,966.43 6,516,131.63
(1) Investment real estate measured at costs
□ Applicable ? Inapplicable
(2) Investment real estate measured at fair value
? Applicable □ Inapplicable
In RMB
Item Houses & buildings Total
I. Opening balance 5,548,371,426.50 5,548,371,426.50
II. Change in this period 49,732,391.33 49,732,391.33
Add: external purchase 62,791,141.98 62,791,141.98
Less: disposal 15,255,167.94 15,255,167.94
Change in fair value 2,196,417.29 2,196,417.29
III. Closing balance 5,598,103,817.83 5,598,103,817.83
The Company needs to comply with the disclosure requirements of the real estate industry in the Guidelines for the Self-
discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.
Disclosure of investment real estate measured at fair value by projects
In RMB
Interim Report 2026 of China Fangda Group Co., Ltd.
Building area Rental income in Change in Reason for the
Item Location Completion time Opening fair value Closing fair value
(m2) the report period fair value change and report
Fangda Town
commercial and office Shenzhen 11 October 2017 92,470.58 39,161,157.39 4,630,949,866.00 4,630,949,866.00 0.00%
buildings
Fangda Building Shenzhen 28 December 2002 20,464.75 7,401,059.75 376,551,400.00 376,551,400.00 0.00%
Nanchang Fangda
Nanchang December 10, 2020 38,165.36 6,510,875.11 327,427,177.00 327,427,177.00 0.00%
Center
Nanchang Fangda
Nanchang 2 August 2005 85,472.88 3,838,276.14 185,877,848.00 186,153,077.36 0.15%
Technology Park
Mainly due to
Dongguan, Zhuhai, additions and
Others 3,364.53 27,522.95 27,565,135.50 77,022,297.47 179.42%
Shaoguan, etc. disposals during
the current period.
Total 239,938.10 56,938,891.34 5,548,371,426.50 5,598,103,817.83 0.90%
Whether the Company has investment real estate in the current construction period
□ Yes ? No
Whether there is new investment real estate measured at fair value in the report period
? Yes □ No
Newly-added investment real estate measured by fair value in the current period:
In RMB
Different
Original accounting Original book Recorded fair Closing fair handling
Item Change time
method value value value method and
basis
Changes in fair
Newly acquired through value
Others settlement of construction 56,406,817.34 56,406,817.34 55,857,617.00 01 May 2026 recognized in
receivables with property. profit or loss
for the period.
Total 56,406,817.34 56,406,817.34 55,857,617.00
In RMB
Item Closing balance Opening balance
Fixed assets 927,689,776.20 940,980,113.90
Total 927,689,776.20 940,980,113.90
(1) Fixed assets
In RMB
Houses & Mechanical Transportation Electronics and
Item PV power plants Total
buildings equipment facilities other devices
I. Original book
value:
balance
Interim Report 2026 of China Fangda Group Co., Ltd.
period
(1) Purchase 1,421,584.04 850,485.26 1,206,952.42 3,479,021.72
(2) Transfer-in of
construction in 2,472,458.24 390,876.15 2,863,334.39
progress
period
(1) Disposal or
retirement
(2) Other decrease 12,720.91 3,450.81 16,171.72
II. Accumulative
depreciation
balance
period
(1) Provision 9,930,875.41 4,125,401.09 426,443.65 1,892,658.86 3,089,063.34 19,464,442.35
period
(1) Disposal or
retirement
(2) Other decrease 10,298.99 1,355.82 11,654.81
III. Impairment
provision
balance
period
period
IV. Book value
value
value
(2) Fixed assets without ownership certificate
In RMB
Item Book value Reason
Yuehai Office Building C 502 91,170.57 Historical reasons
Interim Report 2026 of China Fangda Group Co., Ltd.
(3) Impairment testing of property, plant and equipment
□ Applicable ? Inapplicable
In RMB
Item Closing balance Opening balance
Construction in process 497,646.04 1,214,530.34
Total 497,646.04 1,214,530.34
(1) Construction in progress
In RMB
Closing balance Opening balance
Item Impairme
Remaining Impairment Remaining
Book value nt Book value
book value provision book value
provision
Fangda (Ganzhou) Low-Carbon
Intelligent Manufacturing Base – Phase
I Exhibition Hall and Installed
Equipment
Songshan lake production base
exhibition hall renovation
Software and other information
technology projects
Total 497,646.04 497,646.04 1,214,530.34 1,214,530.34
(2) Impairment testing of construction in progress
□ Applicable ? Inapplicable
(1) Right-to-use assets
In RMB
Item Houses & buildings Transportation facilities Total
I. Book value
period
II. Accumulative depreciation
(1) Provision 2,330,299.98 597,488.57 2,927,788.55
Interim Report 2026 of China Fangda Group Co., Ltd.
period
(1) Disposal 5,086,573.05 75,513.43 5,162,086.48
III. Impairment provision
period
IV. Book value
(2) Impairment testing of right-of-use assets
□ Applicable ? Inapplicable
(1) Intangible assets
In RMB
Trademarks,
Item Land using right patents and know- Software Others Total
how
I. Book value
(1) Purchase 1,023,134.52 1,023,134.52
II. Accumulative amortization
(1) Provision 1,273,146.84 9,251.55 1,193,858.69 90,000.00 2,566,257.08
III. Impairment provision
IV. Book value
Interim Report 2026 of China Fangda Group Co., Ltd.
(2) Impairment test of intangible assets
□ Applicable ? Inapplicable
In RMB
Increase in this Amortized amount in
Item Opening balance Other decrease Closing balance
period this period
Expenditures on
modifications to
property, plant and
equipment, etc.
Total 6,562,494.97 2,168,335.34 1,749,182.40 6,981,647.91
(1) Non-deducted deferred income tax assets
In RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment
provision
Unrealized profit of
internal transactions
Deductible loss 549,768,158.85 100,885,007.34 486,268,366.84 91,973,864.74
Credit impairment
provision
Anticipated liabilities 4,017,884.67 602,682.70 7,214,622.24 1,082,193.35
Unrealized investment
income
Deferred earning 20,902,905.51 3,362,908.30 21,913,458.18 3,518,841.84
Change in fair value 14,475,940.07 2,171,391.01 10,239,089.49 1,535,863.42
Lease liabilities 16,863,651.86 2,877,084.07 13,623,096.04 2,469,342.96
Accrued and unpaid
land tax
Reserved expense 36,589,539.42 5,488,430.92 36,589,539.42 5,488,430.92
Tax and accounting
differences for 7,107,678.07 2,132,303.44 7,121,041.73 2,136,312.52
overseas subsidiaries
Total 1,938,259,413.11 345,402,664.36 1,880,028,115.50 337,441,161.32
(2) Non-deducted deferred income tax liabilities
In RMB
Item Closing balance Opening balance
Interim Report 2026 of China Fangda Group Co., Ltd.
Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
Change in fair value 4,018,560,421.17 1,001,335,988.12 4,014,727,945.14 1,000,546,168.91
Acquire premium to
form inventory
Use right assets 16,604,367.28 2,817,522.25 13,470,006.41 2,564,776.55
Estimated gross margin
when Fangda Town
records income, but 5,842,377.15 1,460,594.30 8,000,812.74 2,000,203.19
does not reach the
taxable income level
Rental income 23,140,174.07 5,785,043.53 24,631,068.63 6,157,767.16
Total 4,065,682,945.15 1,011,783,049.57 4,062,365,438.40 1,011,652,817.18
(3) Net deferred income tax assets or liabilities listed
In RMB
Offset balance of Deferred income tax Offset balance of
Deferred income tax
deferred income tax assets and liabilities at deferred income tax
Item assets and liabilities at
assets or liabilities after the beginning of the assets or liabilities after
the end of the period
offsetting period offsetting
Deferred income tax
assets
Deferred income tax
liabilities
(4) Details of unrecognized deferred income tax assets
In RMB
Item Closing balance Opening balance
Deductible temporary difference 2,597,238.50 2,555,701.75
Deductible loss 20,471,094.22 20,249,356.74
Total 23,068,332.72 22,805,058.49
(5) Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Closing amount Opening amount Remarks
Total 20,471,094.22 20,249,356.74
In RMB
Item Closing balance Opening balance
Interim Report 2026 of China Fangda Group Co., Ltd.
Remaining book Impairment Remaining book Impairment
Book value Book value
value provision value provision
Contract assets 134,870,104.48 9,540,720.85 125,329,383.63 125,214,302.34 9,438,790.60 115,775,511.74
Prepaid house and
equipment amount
Total 148,655,956.61 9,540,720.85 139,115,235.76 155,182,747.84 9,438,790.60 145,743,957.24
In RMB
Closing balance Beginning of the period
Item Remaining book Remaining book
Book value Type of restriction Restricted situation Book value Type of restriction Restricted situation
value value
Various deposits, Various deposits,
For pledge or For pledge or
Monetary capital 645,799,436.10 645,799,436.10 judicially frozen 310,326,554.83 310,326,554.83 judicially frozen
restricted use restricted use
funds, etc. funds, etc.
Bills endorsed or Bills endorsed or
For endorsement or For endorsement or
Notes receivable 16,719,671.79 16,530,347.51 discounted but not 40,781,530.88 39,012,200.04 discounted but not
discounting discounting
yet due yet due
Fixed assets 444,308,110.13 422,580,043.08 Used as collateral Loan by pledge 205,663,759.54 192,954,910.15 Used as collateral Loan by pledge
Intangible assets 24,179,649.75 22,487,074.11 Used as collateral Loan by pledge 24,179,649.75 22,728,870.63 Used as collateral Loan by pledge
Account receivable 37,452,837.90 36,256,465.60 For pledge Loan by pledge 17,452,160.26 17,261,724.13 For pledge Loan by pledge
Investment real
estate
Long-term Equity
Fangda Property Fangda Property
Investments (Parent For pledge For pledge
Development held Development held
Company)
by the Company by the Company
Total 4,517,950,403.67 4,493,144,064.40 3,947,894,353.26 3,931,774,957.78
(1) Classification of short-term borrowings
In RMB
Item Closing balance Opening balance
Guarantee loan 844,279,211.77 674,220,527.58
Guarantee and pledge loan 664,844,846.25 528,625,969.45
Total 1,509,124,058.02 1,202,846,497.03
Notes to classification of short-term borrowings
① Among the guaranteed borrowings at the end of the period, RMB 162,079,172.25 and RMB 676,200,039.52 represent
guarantees provided by the Company for its subsidiaries Fangda Zhiyuan Technology Co., Ltd. and Shenzhen Fangda
Construction Technology Group Co., Ltd., respectively; RMB 6,000,000.00 represents a guarantee provided by the Company for
its subsidiary Shenzhen Fangda Yunzhu Technology Co., Ltd.
② Among the guaranteed and pledged borrowings at the end of the period, RMB 645,863,340.72 is secured by a guarantee from
the Company for its subsidiary Fangda Construction Technology, together with a pledge of margin deposits held by Fangda
Interim Report 2026 of China Fangda Group Co., Ltd.
Construction Technology; RMB 18,981,505.53 is secured by a guarantee from the Company for its subsidiary Fangda Zhijian,
together with a pledge of receivable project payments from external parties held by Fangda Construction Technology in favor of
Fangda Zhijian.
None
In RMB
Item Closing balance Opening balance
Futures contracts 4,250,400.00
Total 4,250,400.00
In RMB
Type Closing balance Opening balance
Commercial acceptance 387,068.42 598,808.42
Bank acceptance 637,932,950.62 428,511,829.11
Total 638,320,019.04 429,110,637.53
The total amount of notes payable that were due but unpaid at the end of the period was RMB 387,068.42, all of which were
commercial acceptance bills. This arose because the holders did not timely apply to the bank for payment. As of the date of
disclosure of this report, such amounts have been paid in full.
(1) Account payable
In RMB
Item Closing balance Opening balance
Account repayable and engineering
repayable
Payable installation and implementation
fees
Construction payable 9,981,096.27 17,642,579.41
Others 23,572,172.05 26,798,424.80
Total 1,647,662,603.78 2,040,691,220.16
（2） Significant accounts payable with aging over one year or overdue
As of the reporting date, there were no significant accounts payable with aging over one year or overdue.
Interim Report 2026 of China Fangda Group Co., Ltd.
In RMB
Item Closing balance Opening balance
Other payables 142,080,215.85 125,372,728.24
Total 142,080,215.85 125,372,728.24
(1) Other payables
In RMB
Item Closing balance Opening balance
Performance and quality deposit 44,160,329.59 39,447,699.46
Deposit 31,573,053.71 23,547,532.18
Reserved expense 1,141,085.14 3,689,432.93
Others 65,205,747.41 58,688,063.67
Total 142,080,215.85 125,372,728.24
(2) Significant other accounts payable older than 1 year or past due
In RMB
Item Closing balance Reason
Shenzhen Yikang Real Estate Co. Ltd. 26,159,711.72 Payment paid as agreed in the contract
Total 26,159,711.72
(1) Prepayment received
In RMB
Item Closing balance Opening balance
Rent received in advance 3,467,916.54 3,517,539.83
Total 3,467,916.54 3,517,539.83
In RMB
Item Closing balance Opening balance
Project funds collected in advance 309,694,409.56 347,809,670.83
Material loan 2,372,950.00 979,539.70
Others 1,471,634.16 1,366,667.08
Total 313,538,993.72 350,155,877.61
The amount and reason for the significant change in the book value during the reporting period
In RMB
Interim Report 2026 of China Fangda Group Co., Ltd.
Item Change Reason
Mainly due to a decrease in advance
Project funds collected in advance -38,115,261.27
receipts from construction projects.
Total -38,115,261.27
(1) Employees' wage payable
In RMB
Item Opening balance Increase Decrease Closing balance
remuneration
program-defined 712,664.95 14,458,789.26 14,531,212.86 640,241.35
contribution plan
compensation
Total 67,812,846.09 217,045,072.20 248,619,894.35 36,238,023.94
(2) Short-term remuneration
In RMB
Item Opening balance Increase Decrease Closing balance
allowance and 60,322,686.83 184,765,043.00 212,565,124.94 32,522,604.89
subsidies
Including: medical
insurance
Labor injury
insurance
Breeding
insurance
Unemployment
insurance
and staff education 448,117.02 365,551.90 364,113.37 449,555.55
fund
leave
Total 61,667,989.02 201,179,063.37 229,004,170.64 33,842,881.75
(3) Defined contribution plan
In RMB
Interim Report 2026 of China Fangda Group Co., Ltd.
Item Opening balance Increase Decrease Closing balance
insurance
Total 712,664.95 14,458,789.26 14,531,212.86 640,241.35
In RMB
Item Closing balance Opening balance
VAT 4,238,501.98 6,404,428.28
Enterprise income tax 9,385,668.46 12,238,129.74
Personal income tax 1,069,268.78 1,465,819.45
City maintenance and construction tax 151,228.73 701,639.13
Land using tax 580,491.55 427,736.41
Property tax 8,857,043.75 1,608,807.88
Education surtax 67,076.46 306,278.00
Local education surtax 44,717.59 204,185.33
Land VAT 1,077,152.75 15,043,321.06
Consumption service tax 1,469,363.12
Others 582,316.71 569,589.35
Total 26,053,466.76 40,439,297.75
In RMB
Item Closing balance Opening balance
Long-term loans due within 1 year 96,254,152.78 368,687,783.34
Lease liabilities due within one year 6,924,438.81 4,642,179.29
Provisions expected to mature within one
year
Total 104,661,339.49 379,089,194.66
In RMB
Item Closing balance Opening balance
Unterminated notes receivable 25,721,266.13 40,781,530.88
Substituted money on VAT 13,191,600.95 20,137,407.63
Total 38,912,867.08 60,918,938.51
(1) Classification of long-term borrowings
In RMB
Item Closing balance Opening balance
Interim Report 2026 of China Fangda Group Co., Ltd.
Guarantee, mortgage and pledge loan 1,326,254,152.78 1,658,687,783.34
Less: Long-term loans due within 1 year 96,254,152.78 368,687,783.34
Total 1,230,000,000.00 1,290,000,000.00
Notes to classification of long-term borrowings:
Among the aforementioned guaranteed, mortgaged, and pledged borrowings, RMB 1,061,045,277.78 is secured by pledges of
income from self-owned investment properties in Fangda Town; RMB 265,208,875.00 is secured by a guarantee from the
Company for its subsidiary Fangda Intelligent Manufacturing, together with mortgages over fixed assets and industrial land use
rights owned by Fangda Intelligent Manufacturing.
Other explanations, including interest rate range: The interest rate range for long-term borrowings is 2.1% to 3.65%.
In RMB
Item Closing balance Opening balance
Lease payments 17,810,321.86 15,229,706.15
Less: unrecognized financing expenses 807,082.88 1,607,979.99
Lease liabilities due within one year 6,924,438.81 4,642,179.29
Total 10,078,800.17 8,979,546.87
In RMB
Item Closing balance Opening balance Reason
Product quality warranty 3,267,732.47 1,175,044.50
Loss contract to be executed 280,345.71 280,345.71
Total 3,548,078.18 1,455,390.21
In RMB
Item Opening balance Increase Decrease Closing balance Reason
Government See the following
subsidy table
Total 26,304,277.69 1,176,916.98 25,127,360.71
Others:
Other misc. gains
Related to
Item December 31, 2025 recorded in this June 30, 2026
assets/earning
period
Major investment project prize from Industry and
Trade Development Division of Dongguan Finance 1,280,953.10 28,571.40 1,252,381.70
Bureau
Special subsidy for industrial transformation,
upgrading and development
Enterprise informationization subsidy project of
Shenzhen Small and Medium Enterprise Service 180,000.00 24,000.00 156,000.00
Agency
Interim Report 2026 of China Fangda Group Co., Ltd.
National Industry Revitalization and Technology
Renovation Project fund
Subsidy for new plant 882,352.90 13,071.90 869,281.00
Land subsidy 4,565,451.72 58,611.78 4,506,839.94
Central air pollution control fund award and subsidy 9,184,448.72 524,825.64 8,659,623.08
Equipment special subsidy 5,216,792.16 298,102.38 4,918,689.78
Total 26,304,277.69 1,176,916.98 25,127,360.71
In RMB
Change (+,-)
Opening balance Issued new Transferred Closing balance
Bonus shares Others Subtotal
shares from reserves
Total of capital
shares
In RMB
Item Opening balance Increase Decrease Closing balance
Capital premium (share capital
premium)
Other capital reserves 1,454,097.35 1,454,097.35
Total 4,357,948.33 4,357,948.33
In RMB
Item Opening balance Increase Decrease Closing balance
Shares in stock 59,938,011.28 59,938,011.28
Total 59,938,011.28 59,938,011.28
In RMB
Amount occurred in the current period
Less:
Less: amount amount
written into written into
other gains other gains After-tax amount
After-tax amount
Item Opening balance Amount before and and Less: Income tax attributed to Closing balance
attributed to the
income tax transferred transferred expenses minority
parent
into gain/loss into shareholders
in previous gain/loss in
terms previous
terms
I. Other comprehensive income
-3,779,277.52 -3,779,277.52
that will not be reclassified to
Interim Report 2026 of China Fangda Group Co., Ltd.
profit or loss
Fair value change of
investment in other equity -3,779,277.52 -3,779,277.52
tools
will be re-classified into gain 164,826,112.02 -7,258,304.20 -721,575.56 -6,535,898.05 -830.59 158,290,213.97
and loss
Cash flow hedge reserve 1,264,159.61 -4,810,503.75 -721,575.56 -4,088,928.19 -2,824,768.58
Translation difference of
-237,041.20 -2,447,800.45 -2,446,969.86 -830.59 -2,684,011.06
foreign exchange statement
Investment real estate
measured at fair value
Other miscellaneous income 161,046,834.50 -7,258,304.20 -721,575.56 -6,535,898.05 -830.59 154,510,936.45
In RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
reserves
Total 85,368,328.00 85,368,328.00
In RMB
Item Current period Last period
Adjustment on retained profit of previous period 4,234,637,792.91 4,805,192,000.28
Retained profit adjusted at beginning of year 4,234,637,792.91 4,805,192,000.28
Plus: Net profit attributable to owners of the parent 54,501,089.34 17,289,598.23
Common share dividend payable 53,693,711.35
Undistributed profits at the end of the period 4,289,138,882.25 4,768,787,887.16
In RMB
Amount occurred in the current period Occurred in previous period
Item
Income Cost Income Cost
Main business 1,531,797,147.59 1,244,859,043.08 1,576,352,547.18 1,287,281,242.59
Other businesses 19,260,609.69 19,125,558.35 21,933,902.86 20,256,406.69
Total 1,551,057,757.28 1,263,984,601.43 1,598,286,450.04 1,307,537,649.28
Breakdown of operating revenues and operating costs:
In RMB
Segment
Contra
Segment 2 - rail transit Segment 3 - real Segment 4 -
Segment 1-curtain wall 5 - other Total
ct
division estate segment new energy
classif segments
ication Turnover Operating cost Turnover Operating cost Turnover Operating Turnover Operatin Turn Operati Turnov Operating
Interim Report 2026 of China Fangda Group Co., Ltd.
cost g cost over ng cost er cost
Busin 7,40 1,551,0
ess 1,199,918,537.87 1,060,944,155.94 255,530,920.39 176,959,630.39 80,450,997.96 1,05 57,757.
type 9.75 28
Includ
ing:
Curtai
n wall
syste 1,060,944,15
m and 5.94
materi
als
Subwa
y
screen
door 255,530,920.39 176,959,630.39
,920.39 39
and
servic
e
Real
estate
rental
and
sales 22,154,320.5 80,450, 22,154,320.5
and 0 997.96 0
proper
ty
servic
es
PV
power
genera 7,756,241 3,923,13 7,756,2
tion .31 3.03 41.31
produ
cts
Others 1,05 3,361.57
By
operat 22,154,320.5 7,756,241 3,923,13 3,361.5 1,263,984,60
ing 0 .31 3.03 7 1.43
region
Includ
ing:
In 22,154,320.5 7,756,241 3,923,13 3,361.5 1,069,505,45
China 0 .31 3.03 7 5.46
Out of 278,611 194,479,145.
China ,730.59 97
Others:
? (1) The main business income is listed as follows according to the breakdown information:
For the first half of 2026, revenue disaggregated by timing of recognition is as follows:
Interim Report 2026 of China Fangda Group Co., Ltd.
Item Current period revenue (RMB) Prior period revenue (RMB)
Revenue recognized at a certain point
in time
Revenue recognized over a period of
time
Total 1,551,057,757.28 1,598,286,450.04
(2) Performance obligation
For curtain wall materials, real estate and other commodity sales transactions, the Company completes the performance
obligations when the customer obtains the control of the relevant commodities; for providing building curtain wall, Metro screen
door design, production and installation and other service transactions, the Company confirms the completed performance
obligations according to the performance progress during the whole service period. The contract price of the Company is usually
due within one year, and there is no significant financing component.
(3) Information related to the transaction price allocated to remaining performance obligations:
As of the end of the reporting period, the transaction price allocated to remaining performance obligations under contracts
signed but not yet fulfilled or partially fulfilled amounted to RMB 6,537,461,921.37, of which RMB 2,171,584,039.12 is expected
to be recognized as revenue in the second half of 2026, RMB 2,100,437,131.07 in 2027, and RMB 2,265,440,751.19 in 2028 and
thereafter.
The Company needs to comply with the disclosure requirements of the real estate industry in the Guidelines for the Self-
discipline and Supervision of Listed Companies of Shenzhen Stock Exchange No. 3 - Industry Information Disclosure.
Top-5 projects in terms of income received and recognized in the reporting period:
In RMB
No. Item Balance
In RMB
Item Amount occurred in the current period Occurred in previous period
City maintenance and construction tax 2,502,988.83 2,501,285.91
Education surtax 1,671,066.60 1,646,183.83
Property tax 11,011,329.98 10,156,874.34
Land using tax 1,123,498.22 951,661.75
Vehicle usage tax 12,720.00 8,280.00
Stamp tax 1,220,219.55 1,207,094.02
Land VAT 24,933.42 29,663.90
Others 146,920.17 190,267.56
Total 17,713,676.77 16,691,311.31
In RMB
Interim Report 2026 of China Fangda Group Co., Ltd.
Item Amount occurred in the current period Occurred in previous period
Labor costs 55,092,833.68 62,759,919.24
Agencies 4,670,980.25 3,730,819.57
Depreciation and amortization 9,475,081.52 7,662,755.81
Office expense 3,488,093.02 5,757,836.53
Entertainment expense 2,783,199.15 2,885,580.60
Amortization of right of use assets and
lease fees
Lawsuit 753,924.00 984,435.34
Travel expense 1,480,728.68 1,161,746.58
Others 3,110,616.79 3,181,245.04
Total 82,094,951.56 90,172,531.38
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 16,419,558.48 14,739,070.64
Sales agency fee 429,657.28 527,851.65
Entertainment expense 3,485,236.77 3,155,262.57
Travel expense 1,570,122.89 1,771,703.48
Advertisement and promotion fee 644,755.21 522,748.38
Amortization of right of use assets and
lease fees
Others 2,357,153.42 1,490,559.11
Total 25,412,850.11 22,633,578.48
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 39,663,495.05 44,988,433.44
Material costs 11,033,578.62 10,230,946.89
Agencies 3,330,380.56 3,892,085.12
Depreciation costs 536,987.95 639,840.42
Amortization of intangible assets 64,233.69 210,522.27
Others 986,964.67 1,552,348.57
Total 55,615,640.54 61,514,176.71
In RMB
Item Amount occurred in the current period Occurred in previous period
Interest expense 37,038,622.14 36,331,469.54
Less: discount government subsidies 374,921.41
Interest income 2,953,634.90 5,980,063.68
Acceptant discount 2,724,514.68 5,957,956.12
Exchange gain/loss 7,631,444.30 -393,308.06
Commission charges and others 2,039,769.45 1,664,490.53
Total 46,105,794.26 37,580,544.45
Interim Report 2026 of China Fangda Group Co., Ltd.
In RMB
Amount occurred in
Source Occurred in previous period
the current period
Government subsidies related to deferred income (related
to assets)
Government subsidies directly included in current profits
and losses (related to income)
Other items related to daily activities and included in other
income
Total 5,753,213.63 6,902,959.39
In RMB
Source of income from fluctuation of fair
Amount occurred in the current period Occurred in previous period
value
Investment real estate measured at fair
value
Other non-current financial assets 217,294.72 3,493.56
Total 2,413,712.01 2,766,545.64
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Gains from long-term equity investment measured by
-35,259.11 -35,164.25
equity
Investment income from trading financial assets 528,675.85 51,673.16
Financial assets derecognized as a result of amortized
-1,233,163.38 -696,903.65
cost
Total -739,746.64 -680,394.74
In RMB
Item Amount occurred in the current period Occurred in previous period
Bad debt loss of other receivables -473,037.55 -1,073,751.30
Bad debt loss of accounts receivable and
-10,591,355.69 -57,932,230.26
notes receivable
Total -11,064,393.24 -59,005,981.56
In RMB
Item Amount occurred in the current period Occurred in previous period
Contract asset impairment loss 7,490,908.24 4,589,393.55
Interim Report 2026 of China Fangda Group Co., Ltd.
Total 7,490,908.24 4,589,393.55
In RMB
Amount occurred in the current
Source Occurred in previous period
period
Disposition not classified as possession of fixed assets to
be sold, construction in progress, productive biological 27,112.76 -1,119,266.83
assets and intangible assets
Including: Fixed assets 27,112.76 -487,985.15
Intangible assets -631,281.68
Disposal of use right assets 122,576.41 3,981.41
Others -407,316.80
Total 149,689.17 -1,522,602.22
In RMB
Amount occurred in the Amount accounted into the
Item Occurred in previous period
current period current accidental gain/loss
Penalty income 88,981.00 71,985.44 88,981.00
Compensation received 179,711.07 37,250.00 179,711.07
Others 60,829.13 110,155.61 60,829.13
Total 329,521.20 219,391.05 329,521.20
In RMB
Amount accounted into
Amount occurred in the
Item Occurred in previous period the current accidental
current period
gain/loss
Donation 20,000.00 530,000.00 20,000.00
Loss from retirement of
damaged non-current assets
Liquidated damages and
penalties
Lawsuit indemnity 1,151.32 1,151.32
Others 251.65 20,592.64 251.65
Total 370,452.58 576,871.24 370,452.58
(1) Details about income tax expense
In RMB
Item Amount occurred in the current period Occurred in previous period
Income tax expenses in this period 16,679,594.70 23,819,854.49
Deferred income tax expenses -7,109,695.09 -26,277,346.25
Total 9,569,899.61 -2,457,491.76
Interim Report 2026 of China Fangda Group Co., Ltd.
(2) Adjustment process of accounting profit and income tax expense
In RMB
Item Amount occurred in the current period
Total profit 64,092,694.40
Income tax expenses calculated based on the legal (or applicable) tax rates 16,023,173.60
Impacts of different tax rates applicable for some subsidiaries -803,534.19
Impacts of income tax before adjustment 945,248.87
Impact of non-taxable income -109,244.76
Impacts of non-deductible cost, expense and loss 1,361,814.37
Impacts of using deductible loss of unrecognized deferred income tax assets -53,949.04
Deductible temporary difference and deductible loss of unrecognized deferred
income tax assets
Profit and loss of associates and joint ventures calculated using the equity
method
Tax effect of super deduction for research and development expenses
-7,840,821.41
(indicated by "-")
Income tax expenses 9,569,899.61
See Note 42, "Other Comprehensive Income," in Section VII, "Notes to Consolidated Financial Statements," of Part VIII for
details.
(1) Cash inflow related to operation
Other cash received from business operations
In RMB
Item Amount occurred in the current period Occurred in previous period
Interest income 2,788,969.38 4,751,884.25
Subsidy income 1,592,586.81 20,397,030.14
Retrieving of bidding deposits 14,541,192.70 23,759,323.07
Other operating accounts 21,679,274.17 27,631,374.22
Total 40,602,023.06 76,539,611.68
Other cash paid for business operations
In RMB
Item Amount occurred in the current period Occurred in previous period
Cash expenses 30,012,503.46 23,490,472.45
Bidding deposit paid 22,816,891.24 14,048,043.41
Net draft deposit net paid 74,782,784.81 180,847,576.76
Court-frozen funds and other current
accounts
Total 145,118,899.44 230,151,595.52
Interim Report 2026 of China Fangda Group Co., Ltd.
(2) Cash related to financing
Other cash received from financing activities
In RMB
Item Amount occurred in the current period Occurred in previous period
Recovery of loan deposits 191,000,000.00
Total 191,000,000.00
Other cash paid related to financing activities
In RMB
Item Amount occurred in the current period Occurred in previous period
Financing fee 997,044.45 1,692,816.72
Principal and interest of lease liabilities 4,479,337.91 4,272,274.51
Bill discount financing deposit 272,049,000.00 83,685,800.00
Share repurchase payments 59,937,469.76
Others 789,080.97
Total 338,251,933.09 89,650,891.23
Changes in liabilities arising from financing activities
? Applicable □ Inapplicable
In RMB
Increase Decrease
Item Opening balance Closing balance
Change in cash Non-cash change Change in cash Non-cash change
Short-term loans 1,202,846,497.03 1,256,571,505.53 12,965,232.25 942,228,902.10 21,030,274.69 1,509,124,058.02
Non-current liabilities due
in 1 year
Long-term loans 1,290,000,000.00 60,000,000.00 1,230,000,000.00
Lease liabilities 8,979,546.87 9,171,342.51 8,072,089.21 10,078,800.17
Total 2,875,156,006.53 1,256,571,505.53 112,170,546.71 1,301,560,898.34 89,955,710.65 2,852,381,449.78
(3) Explanation of cash flows presented on a net basis
Basis for adopting net
Item Relevant factual information Financial impact
presentation
Net margin paid on bills of Corresponding deposits for
exchange, etc. bills of exchange are
Quick turnaround and short
presented on a net basis None
Net deposits received such as maturity
according to changes in their
bills of exchange
balances
(4) Significant activities and financial effects that do not involve current cash receipts and
disbursements but affect the enterprise's financial position or may affect the enterprise's cash flows in the
future
None
Interim Report 2026 of China Fangda Group Co., Ltd.
(1) Supplementary data of cash flow statement
In RMB
Amount of the Current Amount of the
Supplementary information
Term Previous Term
Net profit 54,522,794.79 17,306,590.06
Plus: Asset impairment provision 3,573,485.00 54,416,588.01
Fixed asset depreciation, gas and petrol depreciation, production
goods depreciation
Depreciation of right to use assets 2,927,788.55 3,753,092.34
Amortization of intangible assets 2,566,257.08 3,339,231.01
Amortization of long-term amortizable expenses 1,749,182.40 2,516,462.04
Losses on disposal of fixed assets, intangible assets, and other long-
-149,689.17 1,522,602.22
lived assets (gains indicated by "-")
Losses on retirement of fixed assets (gains indicated by "-") 58,447.14 20,260.37
Losses on changes in fair value (gains indicated by "-") -2,413,712.01 -2,766,545.64
Financial expenses (gains indicated by "-") 39,763,136.82 42,289,425.66
Investment losses (gains indicated by "-") -493,416.74 -16,508.91
Decrease in deferred tax assets (increase indicated by "-") -8,899,024.69 -18,354,312.72
Increase in deferred tax liabilities (decrease indicated by "-") 1,067,754.03 -7,697,073.63
Decrease in inventories (increase indicated by "-") 7,603,781.41 -39,908,231.42
Decrease in operating receivables (increase indicated by "-") 268,493,809.24 23,553,621.51
Increase in operating payables (decrease indicated by "-") -266,267,292.03 -367,876,286.41
Others -115,479,118.98 3,312,944.31
Cash flow generated by business operations, net 7,667,221.67 -266,347,227.85
Debt transferred to assets
Convertible corporate bonds due within one year
Fixed assets under finance leases
Balance of cash at period end 661,261,778.57 759,598,027.98
Less: Initial balance of cash 1,090,965,547.89 1,031,725,216.34
Add: Ending balance of cash equivalents 0.00 0.00
Less: Ending balance of cash equivalents 0.00 0.00
Net increase in cash and cash equivalents -429,703,769.32 -272,127,188.36
(2) Composition of cash and cash equivalents
In RMB
Item Closing balance Opening balance
I. Cash 661,261,778.57 1,090,965,547.89
Interim Report 2026 of China Fangda Group Co., Ltd.
Including: Cash in stock 697.90
Bank savings can be used at any time 640,196,983.13 1,078,821,930.02
Other monetary capital can be used at any time 21,064,795.44 12,142,919.97
III. Balance of cash and cash equivalents at end of term 661,261,778.57 1,090,965,547.89
(3) Monetary funds other than cash and cash equivalents
In RMB
Amount of the Amount of the Previous
Item Reasons for not being cash and cash equivalents
Current Term Term
Various types of
deposits
Total 645,799,436.10 351,421,548.82
(4) Supplier financing arrangements
① Terms and Conditions of Supplier Financing Arrangements
Supplier financing arrangement 1: The Company utilizes the "eXintong" supply chain financial service platform, jointly
provided by Beijing Yuehan Technology Co., Ltd. and Shenzhen Branch of China Construction Bank Corporation (hereinafter
referred to as "CCB"), to conduct reverse factoring transactions, offering services to suppliers holding electronic receivable
instruments on the "eXintong" platform that are payable by the Company upon maturity. Suppliers transfer their accounts
receivable under the Company's electronic debt certificates to CCB and apply for "e-Xintong" business services from CCB.
After analysis and evaluation, CCB provides "e-Xintong" business services to suppliers if conditions are met. The Company's
obligation to fulfill payment under the electronic debt certificates is unconditional and irrevocable, unaffected by any
commercial disputes among parties involved in the transfer of the electronic debt certificates. The Company will not claim
offsets or defenses regarding this payment obligation. The Company will transfer an amount equal to the amount under the
electronic debt certificates on the committed payment date according to the "e-Xintong" platform business rules.
Supplier financing arrangement 2: The Company conducts reverse factoring business through the "Rongtong E-Xin" supply
chain finance platform provided by the Shenzhen Huaqiaocheng Sub-branch of Agricultural Bank of China Limited (hereinafter
referred to as "ABC"), providing services to suppliers holding electronic debt certificates on the "Rongtong E-Xin" platform that
are payable by the Company upon maturity. Suppliers transfer the accounts receivable underlying their electronic debt certificates
issued by the Company to ABC and apply for "Rongtong E-Xin" services. Upon review and assessment, ABC provides "Rongtong
E-Xin" services to eligible suppliers. The Company's obligation to fulfill payment under the electronic debt certificates is
unconditional and irrevocable, unaffected by any commercial disputes among parties involved in the transfer of the electronic debt
certificates. The Company will not claim offsets or defenses regarding this payment obligation. In accordance with the business
rules of the "Rongtong E-Xin" platform, the Company will remit an amount equal to the face value of the electronic debt
certificate on the committed payment date.
Supplier Financing Arrangement 3: The Company has signed a "Payment Agency Cooperation Agreement" with China
Merchants Bank Co., Ltd. Shenzhen Branch, authorizing the bank to deduct payments from the payment account on the dates
specified in the "Detailed Payment Agency List" provided by the Group. When suppliers initiate financing applications, China
Interim Report 2026 of China Fangda Group Co., Ltd.
Merchants Bank Co., Ltd. Shenzhen Branch uses the Company's credit line to handle domestic factoring for suppliers. After the
factoring matures, the Company only needs to pay the factoring financing amount to China Merchants Bank Co., Ltd. Shenzhen
Branch, without interest.
Supplier Financing Arrangement 4: The Company handles reverse factoring (Easy Credit) business through the supply chain
financial service platform provided by Bank of China Shenzhen Futian Branch (hereinafter referred to as "BOC"), offering
services to suppliers holding electronic debt certificates with payments committed by the Company. Suppliers transfer their
accounts receivable under the Company's electronic debt certificates to BOC and apply for Easy Credit business services from
BOC. After analysis and evaluation, BOC provides Easy Credit business services to suppliers if conditions are met. The
Company's obligation to fulfill payment under the electronic debt certificates is unconditional and irrevocable, unaffected by any
commercial disputes among parties involved in the transfer of the electronic debt certificates. The Company will not claim offsets
or defenses regarding this payment obligation. The Company will transfer an amount equal to the amount under the electronic debt
certificates on the committed payment date according to the supply chain financial service platform business rules.
Supplier financing arrangement 5: The Company has entered into relevant agreements with Bank of Shanghai Co., Ltd.,
authorizing Bank of Shanghai to, based on financing details provided by the Company and via the "Shanghang e-Chain" platform,
allow suppliers to initiate financing applications and execute factoring transactions against the Company's credit line with Bank of
Shanghai. Upon maturity of the factoring facility, the Company is only required to repay the principal amount of the factoring
financing to Bank of Shanghai, while the related interest is borne by the designated party as agreed.
② Financial liabilities under supplier financing arrangements presented in the balance sheet and the carrying amount, as well
as the amounts received by suppliers from financing providers
Item June 30, 2026 December 31, 2025
Account payable 368,242,942.33 535,521,368.29
Including: Amounts received by suppliers 237,318,264.71 449,522,342.67
③ Payment due date range for financial liabilities under supplier financing arrangements
Item June 30, 2026 December 31, 2025
Financial liabilities under supplier financing arrangements
receipt receipt
Comparable accounts payable not under supplier financing 0-180 days from invoice
arrangements receipt
(1) Foreign currency monetary items
In RMB
Item Closing foreign currency Exchange rate Closing RMB balance
Interim Report 2026 of China Fangda Group Co., Ltd.
balance
Monetary capital 145,125,480.87
Including: USD 9,625,396.22 6.8109 65,557,162.49
Euro 136,419.93 7.7671 1,059,587.24
HK Dollar 19,556,494.58 0.8686 16,985,793.37
Australian Dollar 8,397,939.60 4.6804 39,305,716.50
Singapore Dollar 3,679,154.77 5.2605 19,354,193.66
Rupee 9,852,810.15 0.0720 709,786.59
Saudi Riyal 134,384.29 1.8104 243,286.72
Vietnamese Dong 1,487,320,578.00 0.0003 385,317.31
UAE Dirham 423,575.44 1.8511 784,064.81
Philippine Peso 6,661,738.85 0.1112 740,572.18
Account receivable 22,427,641.19
Including: USD 1,802,527.22 6.8109 12,276,832.64
HK Dollar 10,640,102.15 0.8686 9,241,460.72
Australian Dollar 192,664.39 4.6804 901,746.41
Singapore Dollar 1,445.00 5.2605 7,601.42
Contract assets 84,024,003.91
Including: USD 3,559,429.59 6.8109 24,242,873.05
HK Dollar 31,506,775.40 0.8686 27,365,209.77
Australian Dollar 3,756,758.92 4.6804 17,583,134.45
Singapore Dollar 2,421,321.88 5.2605 12,737,363.75
Rupee 7,326,896.46 0.0720 527,822.29
UAE Dirham 846,865.07 1.8511 1,567,600.60
Other receivables 4,250,542.70
Including: Hong Kong Dollar 966,311.54 0.8686 839,289.89
Australian Dollar 64,548.14 4.6804 302,111.11
Singapore Dollar 161,842.95 5.2605 851,374.83
Saudi Riyal 162,697.87 1.8104 294,545.08
UAE Dirham 94,361.80 1.8511 174,669.63
Philippine Peso 225,225.38 0.0788 17,752.13
Account payable 38,153,601.70
Including: USD 315,272.49 6.8109 2,147,289.40
HK Dollar 5,367,396.42 0.8686 4,661,852.16
Australian Dollar 5,545,847.14 4.6804 25,956,782.95
Singapore Dollar 717,458.97 5.2605 3,774,192.90
Rupee 5,675,063.76 0.0720 408,825.92
Saudi Riyal 72,916.69 1.8104 132,006.97
Malaysian Ringgit 74,109.25 1.6734 124,015.76
UAE Dirham 512,481.55 1.8511 948,635.64
Other payables 379,721.32
Including: USD 16,531.70 6.8109 112,595.75
Australian Dollar 50,971.02 4.6804 238,564.76
Singapore Dollar 5,357.10 5.2605 28,181.02
Rupee 2,658.38 0.0720 191.51
Saudi Riyal 104.00 1.8104 188.28
Other non-current assets 92,257.53
Including: USD 13,545.57 6.8109 92,257.53
Interim Report 2026 of China Fangda Group Co., Ltd.
(2) The nature and financial impact of the lack of exchangeability of currencies, the spot exchange
rates used and the estimation process, and the risks to which the entity is exposed as a result of the lack of
exchangeability
□ Applicable ? Inapplicable
(3) The note of overseas operating entities should include the main operation places, book keeping
currencies and selection basis. Where the book keeping currency is changed, the reason should also be
explained.
□ Applicable ? Inapplicable
(4) Lack of exchangeability between the functional currency of a foreign operation and the
presentation currency of the entity
□ Applicable ? Inapplicable
(1) The Company is the leasee
? Applicable □ Inapplicable
Variable lease payments not included in the measurement of the lease liability
□ Applicable ? Inapplicable
Lease costs for short-term leases or low-value assets with simplified treatment
? Applicable □ Inapplicable
Item January-June 2026
Short term lease expenses with simplified treatment included in current profit and
loss
Lease expenses of low value assets with simplified treatment included in current
profit and loss (except short-term lease)
Interest expense on lease liabilities 303,570.03
Total cash outflow related to leasing 22,201,550.41
(2) The Company as lessor
Operating leases as lessor
? Applicable □ Inapplicable
In RMB
Including: Income related to variable lease
Item Rental income
payments not included in lease receipts
Rental income 56,993,937.20 191,914.02
Interim Report 2026 of China Fangda Group Co., Ltd.
Total 56,993,937.20 191,914.02
Financing leases as lessor
□ Applicable ? Inapplicable
Undiscounted lease receipts for each of the next five years
? Applicable □ Inapplicable
In RMB
Annual undiscounted lease receipts
Item
Closing amount Opening amount
First year 87,896,259.61 105,050,316.05
Second year 61,688,305.88 67,773,129.84
Third year 37,596,059.04 43,260,708.88
Fourth year 25,862,156.75 26,273,854.79
Fifth year 18,083,442.82 20,185,331.81
Total undiscounted lease receipts after
five years
VIII. R&D expenses
In RMB
Item Amount occurred in the current period Occurred in previous period
Labor costs 39,663,495.05 44,988,433.44
Material costs 11,033,578.62 10,230,946.89
Agencies 3,330,380.56 3,892,085.12
Depreciation costs 536,987.95 639,840.42
Amortization of intangible assets 64,233.69 210,522.27
Others 986,964.67 1,552,348.57
Total 55,615,640.54 61,514,176.71
Including: Expensed R&D expenditure 55,615,640.54 61,514,176.71
IX. Change to Consolidation Scope
Were there any transactions or events resulting in loss of control over subsidiaries during the current period
□ Yes ? No
Disposal of a subsidiary in multiple steps that lead to loss of control in the report period
□ Yes ? No
Explanation of changes in the scope of consolidation due to other reasons (e.g., establishment of new subsidiaries, liquidation
of subsidiaries, etc.) and related circumstances: None.
Interim Report 2026 of China Fangda Group Co., Ltd.
X. Equity in Other Entities
(1) Group Composition
In RMB
Register Shareholding percentage
Place of
Company Registered capital ed Business Obtaining method
business Direct Indirect
address
Shenzhen Fangda Construction Shenzhe Designing, manufacturing, and
Technology Group Co., Ltd. n installation of curtain walls
Production, processing and
Fangda Zhichuang Technology Co., Shenzhe
Ltd. n
doors
Production and sales of new
Fangda New Materials (Jiangxi) Nancha
Co., Ltd. ng
materials
Shenzhen Fangda Property Shenzhe Real estate development and
Development Co., Ltd. n operation
Shenzhen Fangda New Energy Co., Shenzhe Design and construction of PV
Ltd. n power plants
Chengdu Fangda Construction Chengd Trusted processing of building
Technology Co., Ltd. u curtain wall materials
Shihui International Holding Co., Virgin Virgin
Ltd. Islands Islands
Dongguan Fangda New Material Donggu Installation and sales of building
Co., Ltd. an curtain walls
Shenzhen Fangda Property Shenzhe
Management Co., Ltd. n
Fangda (Jiangxi) Property Nancha Real estate development and
Development Co., Ltd. ng operation
Pingxiang Fangda Luxin New Pingxia Design and construction of PV
Energy Co., Ltd. ng power plants
Nanchang Xinjian Fangda New Nancha Design and construction of PV
Energy Co., Ltd. ng power plants
Dongguan Fangda New Energy Co., Donggu Design and construction of PV
Ltd. an power plants
Shenzhen Qianhai Kechuangyuan Shenzhe
Software Co., Ltd. n
Fangda Zhiyuan Technology (Hong Hong
Kong) Co., Ltd. Kong
Shenzhen Fangda Investment Shenzhe
Holding Co., Ltd. n
Australi Designing, manufacturing, and
Fangda Australia Co., Ltd. 2,972,280.00 Australia 100.00% Incorporation
a installation of curtain walls
Technology development and
Shenzhen Fangda Yunzhi Shenzhe sales; Invest in industry;
Technology Co., Ltd. n Operation management of
science and technology park
Chengdu Fangda Curtain Wall Chengd Building decoration and other
Technology Co., Ltd. u construction industry
Vietna Designing, manufacturing, and
Fangda Southeast Asia Co., Ltd. 3,000,000.00 Vietnam 100.00% Incorporation
m installation of curtain walls
Shanghai Fangda Zhijian 100,000,000.00 Shanghai Shangh Intelligent technology, new 30.00% 70.00% Incorporation
Interim Report 2026 of China Fangda Group Co., Ltd.
Technology Co., Ltd ai energy, automated technology
Construction technology,
intelligent technology,
Shanghai Fangda Jianzhi Shangh
Technology Co., Ltd. ai
production and installation of
building curtain walls
Shenzhen Zhongrong Litai Shenzhe
Investment Co., Ltd. n
Fangda Construction Technology Hong Design, sale and installation of
Hong Kong Co., Ltd. Kong building curtain wall
Inspection, technical service and
Consolidation of
Shenzhen Fangda Yunzhu Shenzhe consultation of building safety
Technology Co., Ltd. n and building energy saving
common control
system
Inspection, technical service and
Consolidation of
Shenzhen Yunzhu Testing Shenzhe consultation of building safety
Technology Co., Ltd. n and building energy saving
common control
system
Production, processing and
Singapo
General Railway Technology Ltd. 8,060,094.00 Singapore installation of subway screen 100.00% Incorporation
re
doors
Production, processing and
Fangda Zhiyuan Technology
(Wuhan) Co., Ltd.
doors
Production, processing and
Fangda Zhiyuan Technology Nancha
(Nanchang) Co., Ltd. ng
doors
Fangda Zhiyuan Railway Production, processing and
Donggu
Transportation Equipment 1,000,000.00 Dongguan installation of subway screen 100.00% Incorporation
an
(Dongguan) Co. Ltd. doors
Jiangxi Fangda Intelligent Production and sales of new
Ganzho
Manufacturing Technology Co., 250,000,000.00 Ganzhou materials and composite 99.00% 1.00% Incorporation
u
Ltd. materials
Shenzhen Fangda Jianchuang Shenzhe Installation and sales of building
Technology Co., Ltd. n curtain walls
Shenzhen Fangda Construction Shenzhe Installation and sales of building Non-business
Technology Co., Ltd. n curtain walls combination
Singapo Installation and sales of building
Fangda Facade Singapore Pte Ltd 6,747,930.31 Singapore 100.00% Incorporation
re curtain walls
FANGDA FACADE PHILIPPINES Philippi Installation and sales of building
INC. ne curtain walls
GENERAL RAIL TECHNOLOGY Philippi Metro screen door sales and
PHILIPPINES, INC. ne installation
Installation and sales of building
FANGDA GULF DMCC 788,545.80 Dubai Dubai 100.00% Incorporation
curtain walls
GLOBAL MEGA
Saudi Saudi Designing, manufacturing, and
INTERNATIONAL HOLDINGS 4,088,570.00 100.00% Incorporation
Arabia Arabia installation of curtain walls
LIMITED
FANGDA FACADE Installation and sales of building
CONTRACTING L.L.C curtain walls
FANGDA FACADE (NSW) PTY Australi Installation and sales of building
LTD a curtain walls
(2) Major non wholly-owned subsidiaries
In RMB
Interim Report 2026 of China Fangda Group Co., Ltd.
Profit and loss Dividend to be Interest balance of
Shareholding of
Company attributed to minority distributed to minority minority shareholders
minority shareholders
shareholders shareholders in the end of the period
Zhongrong Litai 45.00% 21,588.47 0.00 48,364,829.54
(3) Financial highlights of major non wholly owned subsidiaries
In RMB
Closing balance Opening balance
No Non
n- -
Com Non- cur Non- Current curr
pany Current Total of Current Total Current Total of Total
current rent current liabilitie ent
assets assets liabilities liabilities assets assets liabilities
assets liab assets s liabi
iliti litie
es s
Zhon
gron 210,440, 30,800 210,471, 102,993, 102,993,6 210,411, 26,300 210,437,5 103,008, 103,008,
g 210.23 .00 010.23 611.26 11.26 282.10 .00 82.10 157.51 157.51
Litai
In RMB
Amount occurred in the current period Occurred in previous period
Company Total of Business Total of Business
Turnover Net profit misc. operation Turnover Net profit misc. operation
incomes cash flows incomes cash flows
Zhongrong
Litai
(1) Financial summary of insignificant joint ventures and associates
In RMB
Closing balance/amount occurred in this Opening balance/amount occurred in
period previous period
Joint venture:
Total shareholding
Associate:
Total book value of investment 32,953,385.52 32,988,644.63
Total shareholding
Net profit -35,259.11 -35,164.25
--Total of misc. incomes -35,259.11 -35,164.25
XI. Government Subsidies
? Applicable □ Inapplicable
Interim Report 2026 of China Fangda Group Co., Ltd.
Ending balance of receivables: RMB 1,442,414.75.
Reasons for not receiving the estimated amount of government grants at the expected point in time
□ Applicable ? Inapplicable
? Applicable □ Inapplicable
In RMB
Amount
Other misc. Other change in
Accounting Opening Amount of new included in non- Assets/earning-
gains recorded the current Closing balance
item balance subsidy operating related
in this period period
revenue
Deferred
earning
Total 26,304,277.69 1,176,916.98 25,127,360.71
? Applicable □ Inapplicable
In RMB
Accounting item Amount occurred in the current period Occurred in previous period
Other gains 3,985,698.08 5,576,715.79
Financial expenses 374,921.41
Total 4,360,619.49 5,576,715.79
XII. Risks of Financial Tools
The risks associated with the financial instruments of the Company arise from the various financial assets and liabilities
recognized by the Company in the course of its operations, including credit risks, liquidity risks and market risks.
The management objectives and policies of various risks related to financial instruments are governed by the management of
the Company. The operating management is responsible for daily risk management through functional departments (for example,
the Company's credit management department reviews the Company's credit sales on a case-by-case basis). The internal audit
department of the Company conducts daily supervision of the implementation of the Company's risk management policies and
procedures, and reports relevant findings to the Company's audit committee in a timely manner.
The overall goal of the Company's risk management is to formulate risk management policies that minimize the risks
associated with various financial instruments without excessively affecting the Company's competitiveness and resilience.
A. Credit risk
Interim Report 2026 of China Fangda Group Co., Ltd.
Credit risk is caused by the failure of one party of a financial instrument in performing its obligations, causing the risk of
financial loss for the other party. The credit risk of the Company mainly comes from monetary capital, notes receivable, accounts
receivable, other receivables, receivables financing, contract assets, etc. The credit risk of these financial assets comes from the
default of the counterparts, and the maximum risk exposure is equal to the book amount of these instruments.
The Company's money and funds are mainly deposited in the commercial banks and other financial institutions. The
Company believes that these commercial banks have higher reputation and asset status and have lower credit risk.
For notes receivable, accounts receivable, other receivables, receivables financing and contract assets, the Company sets
relevant policies to control credit risk exposure. The Group set the credit line and term for debtors according to their financial
status, external rating, and possibility of getting third-party guarantee, credit record and other factors. The Group regularly
monitors debtors' credit record. For those with poor credit record, the Group will send written payment reminders, shorten or
cancel credit term to lower the general credit risk.
(1) Significant increases in credit risk
The credit risk of the financial instrument has not increased significantly since the initial confirmation. In determining
whether the credit risk has increased significantly since the initial recognition, the Company considers reasonable and evidenced
information, including forward-looking information, that can be obtained without unnecessary additional costs or effort. The
Company determines the relative risk of default risk of the financial instrument by comparing the risk of default of the financial
instrument on the balance sheet date with the risk of default on the initial recognition date to assess the credit risk of the financial
instrument from initial recognition.
When one or more of the following quantitative and qualitative criteria are triggered, the Company believes that the credit
risk of financial instruments has increased significantly: the quantitative criteria are mainly the probability of default in the
remaining life of the reporting date increased by more than a certain proportion compared with the initial recognition; the
qualitative criteria are the major adverse changes in the operation or financial situation of the major debtors, the early warning of
customer list, etc.
(2) Definition of assets where credit impairment has occurred
In order to determine whether or not credit impairment occurs, the standard adopted by our company is consistent with the
credit risk management target for related financial instruments, and quantitative and qualitative indicators are considered.
Major financial difficulties have occurred to the issuer or the debtor; Breach of contract by the debtor, such as payment of
interest or default or overdue of principal; (B) The concession that the debtor would not make under any other circumstances for
Interim Report 2026 of China Fangda Group Co., Ltd.
economic or contractual considerations relating to the financial difficulties of the debtor; The debtor is likely to be bankrupt or
undertake other financial restructuring; The financial difficulties of the issuer or debtor lead to the disappearance of the active
market for the financial asset; To purchase or generate a financial asset at a substantial discount, which reflects the fact that a
credit loss has occurred.
Credit impairment in financial assets may be caused by a combination of multiple events, not necessarily by events that can
be identified separately.
(3) Expected credit loss measurement
Depending on whether there is a significant increase in credit risk and whether a credit impairment has occurred, the
Company prepares different assets for a 12-month or full expected credit loss. The key parameters of expected credit loss
measurement include default probability, default loss rate and default risk exposure. Taking into account the quantitative analysis
and forward-looking information of historical statistics (such as counterpart ratings, guaranty methods, collateral categories,
repayment methods, etc.), the Company establishes the default probability, default loss rate and default risk exposure model.
Definition:
The probability of default refers to the possibility that the debtor will not be able to fulfill its obligation to pay in the next 12
months or throughout the remaining period.
Breach Loss Rate means the extent of loss expected by the Company for breach risk exposure. Depending on the type of
counterpart, the manner and priority of recourse, and the different collateral, the default loss rate is also different. The default loss
rate is the percentage of the risk exposure loss at the time of the default, calculated on the basis of the next 12 months or the entire
lifetime.
Exposure to default is the amount payable to the Company at the time of default in the next 12 months or throughout the
remaining life. The assessment of significant increases in credit risk and the calculation of expected credit losses both involve
forward-looking information. Through the analysis of historical data, the Company has identified the key economic indexes that
affect the credit risk of each business type and the expected credit loss.
The largest credit risk facing the Group is the book value of each financial asset on the balance sheet. The Group makes no
guarantee that may cause the Group credit risks. Among the Company's accounts receivable, the top five customers' accounts
receivable (including contract assets) at the end of the period accounted for 12.14% of the Company's total accounts receivable
(beginning of the period: 12.02%); among the Company's other receivables, the top five debtors' other receivables at the end of the
period accounted for 73.23% of the Company's total other receivables (beginning of the period: 70.50%).
Interim Report 2026 of China Fangda Group Co., Ltd.
B. Liquidity risk
Liquidity risk is the risk of capital shortage when the Group needs to pay cash or settled with other financial assets. The
Company is responsible for the cash management of its subsidiaries, including short-term investments in cash surpluses and loans
to meet projected cash requirements. The Company's policy is to regularly monitor short and long-term liquidity requirements and
compliance with borrowing agreements to ensure adequate cash reserves and readily available securities.
As of June 30, 2026, the maturity of the Company's financial liabilities is as follows:
In RMB10,000
June 30, 2026
Item
Less than 1 year Within 1-3 years Over 3 years Total
Short-term loans 150,912.41 150,912.41
Derivative financial liabilities 425.04 425.04
Notes payable 63,832.00 63,832.00
Account payable 158,692.33 5,237.24 836.69 164,766.26
Other payables 6,920.50 1,804.63 5,482.89 14,208.02
Non-current liabilities due in 1 year 10,466.13 10,466.13
Other current liabilities 3,891.29 3,891.29
Long-term loans 25,750.00 97,250.00 123,000.00
Lease liabilities 905.44 102.44 1,007.88
Total 395,139.70 33,697.31 103,672.02 532,509.03
(Continued)
December 31, 2025
Item
Less than 1 year Within 1-3 years Over 3 years Total
Short-term loans 120,284.65 120,284.65
Notes payable 42,911.06 42,911.06
Account payable 200,969.52 1,659.43 1,440.17 204,069.12
Employees' wage payable 6,781.28 6,781.28
Other payables 5,087.03 1,622.93 5,827.31 12,537.27
Non-current liabilities due in 1 year 37,908.92 37,908.92
Other current liabilities 6,091.89 6,091.89
Long-term loans 30,000.00 99,000.00 129,000.00
Lease liabilities 739.16 158.79 897.95
Total 420,034.35 34,021.52 106,426.27 560,482.14
Interim Report 2026 of China Fangda Group Co., Ltd.
C. Market risk
(1) Credit risks
The exchange rate risk of the Company mainly comes from the assets and liabilities of the Company and its subsidiaries in
foreign currency not denominated in its functional currency. Except for the Company's subsidiaries established in the Hong Kong
Special Administrative Region of the People's Republic of China and other overseas jurisdictions, which use the Hong Kong dollar,
US dollar, Australian dollar, Vietnamese dong, euro, Indian rupee, UAE dirham, Philippine peso, or Singapore dollar for pricing
and settlement, the Company's other major businesses are priced and settled in RMB.
As of Tuesday, June 30, 2026, the foreign currency financial assets and foreign currency financial liabilities of the Company
at the end of the period are listed in the description of foreign currency monetary items in Note V, 63.
The Company pays close attention to the impact of exchange rate changes on the Company's exchange rate risk. The
Company continuously monitors the scale of foreign currency transactions and foreign currency assets and liabilities to minimize
foreign exchange risks. To this end, the Company may avoid foreign exchange risks by signing forward foreign exchange
contracts or currency swap contracts.
(2) Exchange rate risk
The Group's interest rate risk mainly arises from long-term interest-bearing debts such as long-term bank loans. Financial
liabilities with floating interest rate cause cash flow interest rate risk for the Group. Financial liabilities with fixed interest rate
cause fair value interest rate risk for the Group. The Group decides the proportion between fixed interest rate and floating interest
rate according to the market environment and regularly reviews and monitors the combination of fixed and floating interest rate
instruments.
The Finance Department at the Company's head office monitors the level of the Group's interest rates on an ongoing basis.
The rising interest rate will increase the cost of the new interest-bearing debt and the interest expenditure on interest-bearing debt
which has not yet been paid by the Company at the floating rate, and will have a significant adverse effect on the Company's
financial performance. Management will make adjustments in time according to the latest market conditions.
For the period ended June 30, 2026, assuming all other risk variables remained constant, if the interest rates on floating-rate
borrowings had increased or decreased by 50 basis points, the Company's net profit for the current period would have decreased or
increased by RMB 3.2406 million.
Interim Report 2026 of China Fangda Group Co., Ltd.
(1) The Company conducts hedging business for risk management.
? Applicable □ Inapplicable
Economic
Effective The impact of the
Corresponding risk Qualitative and relationships
achievement of corresponding
management quantitative between hedged
Item expected risk hedging activities
strategies and information about items and related
management on the risk
objectives the hedged risk hedging
objectives exposure
instruments
The Company uses
aluminum futures
to hedge
Utilizing the aluminum-related
The Company has
hedging function raw materials in its
formulated
of futures tools, prospective
relevant internal
the Company procurement
The underlying management
carries out business. The
variables are systems for its
aluminum futures Company adopts
standard aluminum aluminum futures
hedging business the strategy of
prices, and the hedging and
to reasonably dynamic hedging
values of hedged forward foreign Buy or sell
avoid the risks of commodity
items and hedging exchange trading corresponding
brought about by price risk exposure
instruments business, and aluminum futures
Aluminum futures fluctuations in the by adjusting its
change in opposite continuously contracts to hedge
hedging prices of relevant futures contract
directions due to evaluates the the risk exposure
raw materials to its position according
facing the same effectiveness of existing in the spot
operations, to to a certain
hedged risks, and hedging to ensure business side.
enhance the percentage of its
there is a that the hedging
Company's overall prospective
relationship of relationship is
ability to withstand procurement
mutual hedging of effective in the
risks and to exposure, and the
risks. designated
strengthen the exposure* hedging
accounting period,
robustness of its ratio is basically
and that the risks
operating the same as the
of fluctuations in
activities. quantity of the
raw material
commodity
purchasing prices
represented by the
and exchange rate
futures position.
fluctuations of
Utilizing the The Company uses
The underlying foreign-currency
hedging and forward foreign
variables are all receivables are
protection function exchange contracts
foreign currency controlled within a
of forward foreign to hedge expected
exchange rates. reasonable range,
exchange receivables. The Buy or sell
The exchange rates so as to enhance
contracts, the Company employs corresponding
of the hedged item the Company's
Company carries a strategy of forward foreign
Forward foreign and the hedging risk-resistance
out the business of dynamic hedging exchange contracts
exchange contract instrument change ability and
hedging foreign of exchange rate to hedge the risk
value preservation in opposite increase the
currency exposures, exposure of
directions due to robustness of its
receivables in whereby foreign foreign currency
exposure to the operating
order to reasonably exchange contract receivables.
same hedged risk, activities.
avoid the risks positions are
and there is a
brought by adjusted according
relationship of risk
exchange rate to a certain
hedging.
fluctuations to its percentage of the
Interim Report 2026 of China Fangda Group Co., Ltd.
operations, expected foreign
enhance the currency
Company's overall receivable
ability to withstand exposure, and the
risks, and ratio of the
strengthen the exposure* hedge is
soundness of its essentially the
operating same as the
activities. receivable
represented by the
contract position.
(2) The Company conducts eligible hedging operations and applies hedge accounting.
In RMB
Cumulative fair value
Carrying value hedge adjustments to Impact of hedge
Hedge effectiveness
associated with hedged hedged items included accounting related to
Item and sources of hedge
items and hedging in the carrying value of the Company's
ineffectiveness
instruments the hedged item financial statements
recognized
Types of hedge risk
Derivative financial
liabilities RMB
Relevance of hedged 4,250,400.00, other
Price risk -4,250,400.00 Inapplicable items to hedging comprehensive income
instruments RMB -3,589,637.89,
deferred tax assets
RMB 660,762.11
Derivative financial
assets RMB
Relevance of hedged comprehensive income
Exchange rate risk 899,846.25 Inapplicable items to hedging RMB 764,869.31,
instruments deferred tax liabilities
RMB 134,976.94,
financial expenses
RMB 981,448.00
Type
Derivative financial
assets RMB
financial liabilities
RMB 4,250,400.00,
other comprehensive
Relevance of hedged
income RMB -
Cash flow hedging -3,350,553.75 Inapplicable items to hedging
instruments
tax assets RMB
tax liabilities RMB
expenses RMB
Interim Report 2026 of China Fangda Group Co., Ltd.
(3) The Company conducts hedging business for risk management and expects to achieve its risk management
objectives but does not apply hedge accounting.
□ Applicable ? Inapplicable
(1) Classification of transfer methods
? Applicable □ Inapplicable
In RMB
Nature of financial Amount of financial Basis for judging
Way of transfer Derecognization
assets transferred assets transferred derecognization
Promissory notes used
for discounting or
endorsement are
accepted by banks or
enterprises with low
credit ratings,
Outstanding
discounting or
Endorsement promissory notes in 16,719,671.79 Not derecognized
endorsement does not
notes receivable
affect recourse, and the
credit risk and deferred
payment risk
associated with the
notes remain
untransferred
Bankers' acceptances
used for discounting or
endorsement are
Outstanding bankers' accepted by banks with
Endorsement acceptances in 10,230,878.72 Derecognization high credit ratings and
receivables financing the credit risk and
deferred payment risk
associated with the
instruments are low
Outstanding
Factoring receivables in 53,213,699.71 Derecognization Non-recourse factoring
receivables financing
Total 80,164,250.22
(2) Financial assets derecognized due to transfers
? Applicable □ Inapplicable
In RMB
Transfer method of financial Amount of financial assets Gain or loss related to the de-
Item
assets derecognized recognition
Outstanding bankers'
acceptances in receivables Endorsement 10,230,878.72
financing
Account receivable Factoring 53,213,699.71 -1,233,163.38
Total 63,444,578.43 -1,233,163.38
Interim Report 2026 of China Fangda Group Co., Ltd.
(3) Transfer of financial assets with continuing involvement in assets
□ Applicable ? Inapplicable
Other note
XIII. Fair Value
In RMB
Closing fair value
Item First level fair
Second level fair value Third level fair value Total
value
-- -- -- --
measurement
(I) Transactional financial
assets
at fair value with variations
accounted into current
income account
(1) Derivative financial assets 899,846.25 899,846.25
assets
(II) Investment property 5,598,103,817.83 5,598,103,817.83
(III) Receivables financing 16,748,225.96 16,748,225.96
(4) Other non-current
financial assets
Total assets measured at fair
value continuously
(5) Transactional financial
liabilities
Including: Derivative
financial liabilities
Total assets measured at fair
value continuously
-- -- -- --
measurement
fair value
For the financial instruments traded in the active market, the Company determines their fair value based on their quoted
prices in the active market; for the financial instruments not traded in the active market, the Company adopts valuation technology
to determine their fair value. The valuation models are mainly cash flow discount model and market comparable company model.
Interim Report 2026 of China Fangda Group Co., Ltd.
The input value of valuation technology mainly includes risk-free interest rate, benchmark interest rate, exchange rate, credit point
difference, liquidity premium, lack of liquidity discount, etc.
continuous and discontinuous second level fair value items
For derivative financial assets and derivative financial liabilities with fair value of forward exchange contracts, the fair value
is determined based on the market value of expected earnings at the balance sheet date.
Receivables financed at fair value through other comprehensive income are notes receivable, for which the fair value is
determined based on the book value due to the short remaining maturity.
continuous and discontinuous third level fair value items
Investment properties measured at fair value are appraised using the comparative and income approaches. Comparison
method: It selects a certain number of comparable examples, compares them with the valuation object and processes the
comparable instance transaction prices according to the difference to obtain the value or price of the valuation object. The income
approach is a method of predicting the future earnings of the object of valuation, and using the rate of compensation or
capitalization rate, income multiplier to convert the future earnings into value to get the value or price of the object of valuation.
current period: reasons for such transfers and the policy for determining the timing of transfers
The Company takes the occurrence date of the events leading to the transition between levels as the time point to confirm the
transition between levels. In the period, there is no switch in the financial assets measured at fair value between the first and
second level or transfer in or out of the third level.
Financial assets and liabilities measured at amortized cost include: monetary capital, bills receivable, accounts receivable,
other receivables, short-term borrowings, notes payable, accounts payables, other payables, and long-term payables.
XIV. Related Parties and Transactions
Parent Registered Business Registered Share of the parent Voting power of
Interim Report 2026 of China Fangda Group Co., Ltd.
address capital co. in the the parent
Company company
Shenzhen Banglin Technologies Limited liability RMB30
Shenzhen 11.11% 11.11%
Development Co., Ltd. company million
Hong Limited liability HKD1
Shengjiu Investment Ltd. 10.94% 10.94%
Kong company million
Particulars about the parent of the Company:
① The major shareholder of the Company, Shenzhen Banglin Technology Development Co., Ltd., is wholly owned by
natural persons, among whom Mr. Xiong Jianming, Chairman of the Company, holds 85% of the shares, and Mr. Xiong Xi, Vice
Chairman of the Company, holds 15% of the shares.
② Among the top 10 shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu Investment Co., Ltd.
are acting in concert.
The final controller of the Company is Xiong Jianming.
For details of subsidiaries of the enterprise, please refer to Note X, rights and interests in other entities.
Key joint ventures or associates of the Company are disclosed in Note X, "Interests in Other Entities."
Information about other joint ventures or associates with related transactions in this period or with balance generated by
related transactions in previous period:
Joint venture or associate Relationship with the Company
Shenzhen Ganshang Joint Investment Co., Ltd. Affiliates of the Company
Other related parties Relationship with the Company
Jiangxi Business Innovative Property Joint Stock Co., Ltd. Affiliates of the Company
Shenzhen Ganshang Joint Investment Co., Ltd. (Shenzhen Ganshang) Affiliates of the Company
Shenzhen Fangda Property Development Co., Ltd. (hereinafter Fangda Property
Controlled subsidiaries
Development)
Shenzhen Qijian Technology Co., Ltd. (Qijian Technology) Common actual controller
Director, manager and secretary of the Board Key management
(1) Related transactions for purchase and sale of goods, provision and acceptance of services
Sales of goods and services
In RMB
Affiliated party Related transaction Amount occurred in the Occurred in previous period
Interim Report 2026 of China Fangda Group Co., Ltd.
current period
Property service and sales of
Qijian Technology 13,438.36 14,291.81
goods
(2) Related leasing
The Company is the leasor:
In RMB
Rental recognized in the Rental recognized in the
Name of the leasee Category of asset for lease
period period
Qijian Technology Houses & buildings 43,428.57 43,428.57
(3) Related guarantees
The Company is the guarantor:
In RMB
Whether the
guarantee
Beneficiary party Amount guaranteed Start date Due date has been
fully
performed
Fangda Construction Three years after the expiration
Technology date of debt performance
Fangda Construction Three years after the expiration
Technology date of debt performance
Fangda Construction Three years after the expiration
Technology date of debt performance
Fangda Construction Three years after the expiration
Technology date of debt performance
Fangda Construction Three years after the expiration
Technology date of debt performance
Fangda Construction Three years after the expiration
Technology date of debt performance
Fangda Construction Three years after the expiration
Technology date of debt performance
Fangda Construction Three years after the expiration
Technology date of debt performance
Fangda Construction Three years after the expiration
Technology date of debt performance
Fangda Construction Three years after the expiration
Technology date of debt performance
Fangda Construction Three years after the expiration
Technology date of debt performance
Fangda Construction Three years after the expiration
Technology date of debt performance
Fangda Construction Three years after the expiration
Technology date of debt performance
Fangda Construction Three years after the expiration
Technology date of debt performance
Three years after the expiration
Fangda Zhiyuan 358,000,000.00 June 19, 2025 Yes
date of debt performance
Three years after the expiration
Fangda Zhiyuan 180,000,000.00 December 15, 2024 Yes
date of debt performance
Interim Report 2026 of China Fangda Group Co., Ltd.
Three years after the expiration
Fangda Zhiyuan 200,000,000.00 21 April 2025 Yes
date of debt performance
Three years after the expiration
Fangda Zhiyuan 200,000,000.00 November 11, 2024 Yes
date of debt performance
Three years after the expiration
Fangda Zhiyuan 155,500,000.00 November 21, 2023 Yes
date of debt performance
Three years after the expiration
Fangda Zhiyuan 150,000,000.00 September 4, 2024 Yes
date of debt performance
Three years after the expiration
Fangda Zhiyuan 150,000,000.00 January 13, 2025 Yes
date of debt performance
Three years after the expiration
Fangda Zhiyuan 100,000,000.00 11 May 2024 Yes
date of debt performance
Three years after the expiration
Fangda Zhijian 70,000,000.00 8 May 2024 Yes
date of debt performance
Three years after the expiration
Fangda Property 1,350,000,000.00 February 25, 2020 Yes
date of debt performance
Three years after the expiration
Fangda Yunzhu 10,000,000.00 25 March 2025 Yes
date of debt performance
Three years after the expiration
Fangda Yunzhu 7,000,000.00 21 April 2025 Yes
date of debt performance
Total amount of guarantee
fulfilled
Fangda Construction Three years after the expiration
Technology date of debt performance
Fangda Construction Three years after the expiration
Technology date of debt performance
Fangda Construction Three years after the expiration
Technology date of debt performance
Fangda Construction Three years after the expiration
Technology date of debt performance
Fangda Construction Three years after the expiration
Technology date of debt performance
Fangda Construction Three years after the expiration
Technology date of debt performance
Fangda Construction Three years after the expiration
Technology date of debt performance
Fangda Construction Three years after the expiration
Technology date of debt performance
Fangda Construction Three years after the expiration
Technology date of debt performance
Fangda Construction Three years after the expiration
Technology date of debt performance
Fangda Construction Three years after the expiration
Technology date of debt performance
Fangda Construction Three years after the expiration
Technology date of debt performance
Three years after the expiration
Fangda Zhiyuan 180,000,000.00 January 6, 2026 No
date of debt performance
Three years after the expiration
Fangda Zhiyuan 310,000,000.00 June 2, 2026 No
date of debt performance
Three years after the expiration
Fangda Zhiyuan 200,000,000.00 28 April 2026 No
date of debt performance
Three years after the expiration
Fangda Zhiyuan 100,000,000.00 December 9, 2025 No
date of debt performance
Three years after the expiration
Fangda Zhiyuan 150,000,000.00 Jul. 16, 2025 No
date of debt performance
Fangda Zhiyuan 100,000,000.00 Jul. 01, 2025 Three years after the expiration No
Interim Report 2026 of China Fangda Group Co., Ltd.
date of debt performance
Three years after the expiration
Fangda Zhiyuan 154,750,000.00 November 17, 2025 No
date of debt performance
Three years after the expiration
Fangda Zhiyuan 150,000,000.00 January 27, 2026 No
date of debt performance
Three years after the expiration
Fangda Zhiyuan 100,000,000.00 November 20, 2025 No
date of debt performance
Three years after the expiration
Fangda Zhijian 70,000,000.00 June 30, 2025 No
date of debt performance
Three years after the expiration
Fangda Yunzhu 10,000,000.00 27 May 2026 No
date of debt performance
Three years after the expiration
Fangda Yunzhu 3,000,000.00 28 April 2026 No
date of debt performance
Fangda Dongguan New Three years after the expiration
Material date of debt performance
Three years after the expiration
Fangda New Material 85,000,000.00 27 February 2025 No
date of debt performance
Three years after the expiration
Fangda Property 1,100,000,000.00 02 April 2025 No
date of debt performance
Fangda Intelligent Three years after the expiration
Manufacturing date of debt performance
Date of project contract
Fangda Zhiyuan 318,960,200.00 17 February 2024 No
completion
Date of project contract
Fangda Zhiyuan 248,851,600.00 17 February 2024 No
completion
Total amount of guarantee
being performed
(4) Remuneration of key management
In RMB
Item Amount occurred in the current period Occurred in previous period
Key management personnel
compensation
(5) Other related party transactions
(1) Receivable interest
In RMB
Closing balance Opening balance
Item Affiliated party Remaining book Remaining book
Bad debt provision Bad debt provision
value value
Account
Qijian Technology 2,628.14 26.28 10,048.39 100.48
receivable
Ganshang Joint
Other receivables 3,791,089.25 2,597,047.51 3,791,089.25 2,531,120.89
Investment
Shenzhen Yikang
Other receivables Real Estate Co. 76,062,675.83 760,626.76 76,062,675.83 760,626.76
Ltd.
Interim Report 2026 of China Fangda Group Co., Ltd.
(2) Receivable interest
In RMB
Opening balance of book
Item Affiliated party Closing balance of book value
value
Shenzhen Yikang Real Estate
Other payables 26,159,711.72 26,159,711.72
Co. Ltd.
Other payables Qijian Technology 19,760.00 19,760.00
Other payables Ganshang Joint Investment 3,355.36 3,355.36
XV. Commitment and Contingent Events
Major commitments that exist on the balance sheet day
In July 2018, the Company's subsidiary Fangda Real Estate Co. Ltd. (Party A) signed a contract with Shenzhen Yikang Real
Estate Co. Ltd. (Party B1) and Shenzhen Qianhai Zhongzheng Dingfeng No. 6 Investment Enterprise (Limited Partnership) (Party
B2), "Shenzhen Henggang Dakang Village Project Cooperation Agreement". Party B agrees to transfer the entire equity of the
project company it holds and the entire development interest of the project to Party A. Party A shall pay Party B a total of
RMB600 million for the cooperation price. As of June 30, 2026, Fangda Property has paid project partners including Party B a
total of RMB 50 million in security deposits, RMB 20 million in service fees, RMB 61,937,200 in equity transfer consideration,
and RMB 81,862,200 in other related payments.
The Company has no other commitments that should be disclosed by June 30, 2026.
Significant contingencies on the balance sheet date:
(1) Contingent liabilities formed by material lawsuit or arbitration, and their influences on the financial position
In August 2024, Fangda Construction Technology Company filed a lawsuit with the People's Court of Longgang District,
Shenzhen, requesting South China International Industrial Raw Materials City (Shenzhen) Co., Ltd. and South China City
Holdings Ltd. to pay Fangda Construction Technology Company the principal and interest of the project payment for the South
China International Electronic Industrial Raw Materials Logistics Zone (Phase I), totaling RMB46,004,481.42. The company also
claimed the priority right of compensation for construction project payments. As of the disclosure date of this report, the case is
still under trial.
② In March 2022, Xiangheng Real Estate (Jinan) Co., Ltd. filed an arbitration application with the Jinan Arbitration
Commission, and subsequently amended its claims to request that Fangda Construction Technology bear deductions arising from
quality issues in the specialized subcontracting works for aluminum alloy doors, windows, louvers, and curtain walls of the Jinan
Kerry Comprehensive Development Project (Phases I & II), as well as costs for repairs, rectification, and rework totaling RMB
RMB 323,271.91, and attorney’s fees of RMB 690,000.00. In April 2022, Fangda Construction Technology filed a counterclaim
Interim Report 2026 of China Fangda Group Co., Ltd.
requesting Xiangheng Real Estate (Jinan) Co., Ltd. to pay project payments and related expenses totaling RMB 18,062,462.28. As
of the disclosure date of this report, the Jinan Arbitration Commission has issued a preliminary ruling on the undisputed portion of
the counter-arbitration application filed by Fangda Construction Technology Company, requiring Xiangheng Real Estate (Jinan)
Co., Ltd. to first pay Fangda Construction Technology Company RMB5,073,672.92 and interest. Fangda Construction Technology
Company has applied for compulsory enforcement of this portion. The remaining parts of the case are being consolidated for trial.
As of the disclosure date of this report, the case is still under trial.
③ In August 2025, Fangda Construction Technology filed a lawsuit with the Wenjiang District People's Court of Chengdu,
requesting Chengdu Wenjiang Yufu Wansheng Rail Transit City Development Co., Ltd. to pay project payments and interest for
the Chengdu Wenjiang Xuhui Center Project totaling RMB 17,238,120.44, and requesting its sole shareholder, Chengdu
Xinghuangfei Enterprise Management Co., Ltd., to assume joint and several liability, while also asserting priority of compensation
for the project price. In February 2026, the court of first instance ruled that Chengdu Wenjiang Yufu Wansheng Rail Transit Urban
Development Co., Ltd. shall pay Fangda Company construction costs of RMB17,222,549.37 and confirmed that Fangda
Construction Technology Company has priority rights over the curtain wall works of the tower and podium of the Chengdu
Wenjiang R&F Center. As of the date of disclosure of this report, Chengdu Wenjiang Yufu Wansheng Rail Transit City
Development Co., Ltd., dissatisfied with the first-instance judgment, has filed an appeal. As of the date of disclosure of this report,
the second-instance hearing has been held, and the case is pending judgment.
④ In January 2026, Fangda Construction Technology Company filed a lawsuit with the Qingpu District People's Court of
Shanghai, requesting that Shanghai Lianhong Real Estate Co., Ltd. pay RMB26,269,434.95 in principal and interest for
construction costs related to the West Hongqiao Project, and asserting a priority right to the construction payment. As of the date
of disclosure of this report, first-instance judgments have been rendered regarding the completion payment for Plot A, the
additional construction for Plot E, Plot D, and the additional construction for Plot D, awarding project payments of RMB 8.49
million. Shanghai Lianhong Real Estate Co., Ltd., dissatisfied with the first-instance judgments, has filed appeals in all cases. As
of the date of disclosure of this report, these cases are pending second-instance proceedings.
⑤ In June 2025, Fangda Construction Technology Company filed a lawsuit with the Longhua District People's Court of
Shenzhen, requesting that Shenzhen Jinshunyuan Industrial Group Co., Ltd. pay RMB4,738,376.50 in principal and interest for
construction costs related to the Jinshun Mingju Project, and asserting a priority right to the construction payment In December
requesting Fangda Construction Technology to pay liquidated damages for delay of RMB 9,250,070. Fangda Construction
Interim Report 2026 of China Fangda Group Co., Ltd.
Technology also added a claim requesting payment of overdue payment interest of RMB 5.75 million. As of the date of disclosure
of this report, the first-instance hearing has been held, and the case is pending judgment.
⑥ In June 2026, Fangda Zhiyuan filed an arbitration application with the Lanzhou Arbitration Commission, requesting
Lanzhou Rail Transit Co., Ltd. to pay taxes and interest for Phase I of Lanzhou Metro Line 2 totaling RMB 11,801,917.29. As of
the date of disclosure of this report, the arbitration commission has accepted the case, and the hearing is pending.
⑦ In December 2025, Fangda Construction Technology filed a lawsuit with the Qingpu District People's Court of Shanghai,
requesting Shanghai Yaojing Industrial Co., Ltd. to pay project payments and interest for the Hejing Life Science Valley Project
totaling RMB 19,585,212.92, asserting priority of compensation for the construction project price, and claiming that its
shareholder, Shanghai Xuanzhuo Health Technology Co., Ltd., shall bear joint and several liability for repayment to the extent of
its unpaid capital contribution. As of the date of this report's disclosure, the case remains under trial.
⑧ In January 2026, the Qianhai Cooperation Zone People's Court of Shenzhen accepted the case filed by Fangda
Construction Technology against Lianjian Construction Engineering Co., Ltd. and Shenzhen Qianhai Hengchang Technology
Development Co., Ltd., requesting payment of project payments and interest for the Hengchang Technology Building Project
totaling RMB 53,113,562.23, and asserting priority of compensation for the construction project price within the scope of
construction. As of the date of this report's disclosure, the case remains under trial.
⑨ In April 2026, Shenzhen Jinshunyuan Industrial Group Co., Ltd. filed a lawsuit with the Longhua District People's Court
of Shenzhen, requesting Shenzhen Fangda Yunzhu Technology Co., Ltd. and Shenzhen Fangda Construction Technology Group
Co., Ltd. to pay losses arising from engineering quality issues of RMB 4,233,790.38, liquidated damages of RMB 3,680,150.73,
and to bear the litigation costs and preservation fees of this case. In July 2026, Shenzhen Fangda Yunzhu Technology Co., Ltd.
filed a counterclaim with the court, requesting Shenzhen Jinshunyuan Industrial Group Co., Ltd. to pay the settlement amount of
RMB 3,520,071.13 and interest of RMB 163,644.20 (calculated on the basis of RMB 3,520,071.13 at the Loan Prime Rate from
December 25, 2024, provisionally through June 30, 2026, amounting to RMB 163,644.20, and to be finally calculated through the
date of full payment); the counterclaim also requests payment of the project quality warranty deposit of RMB 1,144,050.59 and
interest of RMB 42,348.94 (calculated on the basis of RMB 1,144,050.59 at the Loan Prime Rate from April 14, 2025,
provisionally through June 30, 2026, amounting to RMB 42,348.94, and to be finally calculated through the date of full payment);
the counterclaim further requests payment of overdue payment interest on project progress payments of RMB 1,749,267.72; and
seeks confirmation of priority of compensation over the proceeds from the discounted value or auction of the doors, windows, and
curtain wall system works of the Jinshun Mingju Project involved in the case. As of the date of this report's disclosure, the case
remains under trial.
Interim Report 2026 of China Fangda Group Co., Ltd.
(2) Pending major lawsuits
① In September 2022, Fangda Property Co., Ltd. filed a lawsuit to the People's Court of Nanshan District, Shenzhen,
requiring Shenzhen Hongtao Group Co., Ltd. to pay the total principal and interest of Fangda Property Co., Ltd. to Fangda
Property Co., Ltd. for the purchase of building 3 # in Fangda Town, amounting to RMB56,527,427.01, and Hongtao Company's
counterclaim party, Dada Real Estate Co., Ltd., requested to cancel the signed Supplementary Agreement on Real Estate Sales and
pay the liquidated damages of RMB44,046,859.04 for overdue certificate processing. The court has issued a first instance
judgment, ruling that Hongtao Company shall pay Fangda Real Estate Company the purchase price of RMB40,127,678.19 and
overdue payment interest (temporarily calculated as RMB8,418,135.54 until June 30, 2022). The subsequent interest shall be
calculated based on RMB40,127,678.19 and continue to be calculated until the actual payment date according to the loan market
quotation interest rate standard published by the National Interbank Funding Center. Reject all counterclaim requests from
Hongtao Company. Subsequently, both parties filed appeals. The second-instance court upheld the original judgment, and the case
has entered the enforcement proceedings. As of the date of disclosure of this report, Hongtao Company has been ordered by the
court to undergo bankruptcy liquidation.
② In April 2023, Fangda Construction Technology filed a lawsuit with the Guangzhou Intermediate People's Court,
demanding the termination of the construction contract signed with Guangzhou Kaidar Investment Co., Ltd. for the Kaidar Hub
International Plaza project, and requiring Guangzhou Kaidar Investment Co., Ltd. to pay the principal amount of the project
payment of RMB113,529,244.60 and interest to Fangda Construction Technology, and claiming the priority right to receive
compensation for the construction project price. As of the date of disclosure of this report, the court has issued a first-instance
judgment, ruling that Kaide'er Company shall pay Fangda Construction Technology the principal of project payments amounting
to RMB 113,529,244.60 together with corresponding interest, and that Fangda Construction Technology shall enjoy priority of
compensation over the proceeds from the discounted value or auction of the project's curtain wall. As of the date of disclosure of
this report, Kaide'er Company has been ordered by the court to undergo bankruptcy liquidation. Fangda Construction Technology
has declared its creditors' rights and the liquidation is ongoing.
③ In September 2022, Fangda Construction Technology Co., Ltd. filed a lawsuit to the People's Court of Longhua District,
requiring Longguang Engineering Construction Co., Ltd. to pay the total principal and interest of the project funds of Longguang
Jiuzuan Project Plot 05 and Plot 09 to Fangda Construction Technology Co., Ltd., totaling RMB33,197,543.00. As of the
disclosure date of this report, the case regarding the Jiuzuan Plot 05 project has concluded with both first and second instance
judgments. The first instance judgment ruled that Longguang Company must pay Fangda Construction Technology Company
project payments of RMB7,709,679.55, a quality guarantee deposit of RMB6,033,911.38, and corresponding interest, while also
Interim Report 2026 of China Fangda Group Co., Ltd.
granting priority compensation rights on the proceeds from the sale or auction of the curtain wall fabrication and installation
project. The second instance judgment upheld the first instance decision regarding the project payments, quality guarantee deposit,
corresponding interest, and priority compensation rights, and additionally ruled that Shenzhen Longguang Junjing Real Estate
Development Co., Ltd., the owner of the Longguang Jiuzuan Plot 05 project, is jointly liable for the debt to Fangda Construction
Technology Company. The case has entered the enforcement stage. As of the disclosure date of this report, the case regarding the
Jiuzuan Plot 09 project has concluded with both first and second instance judgments. The first instance judgment ruled that
Longguang Company must pay Fangda Construction Technology Company project payments of RMB9,166,924.08, a quality
guarantee deposit of RMB4,875,762.96, and corresponding interest, while also granting priority compensation rights on the
proceeds from the sale or auction of the curtain wall fabrication and installation project. The second instance judgment upheld the
first instance decision regarding the project payments, quality guarantee deposit, corresponding interest, and priority compensation
rights, and additionally ruled that Shenzhen Longguang Junjing Real Estate Development Co., Ltd., the owner of the Longguang
Jiuzuan Plot 09 project, is jointly liable for the debt to Fangda Construction Technology Company. As of the date of disclosure of
this report, the case is under enforcement.
④ In November 2023, Fangda Construction Technology Company filed a lawsuit with the People's Court of Honggutan
District, Nanchang City, requesting Jiangxi Huilian Real Estate Co., Ltd. and Jiangxi Boneng Industrial Group Co., Ltd. to pay the
project payments and interest totaling RMB45,309,399.07 for the Nanchang Shangle Center project and claimed priority
compensation rights for the project payments. The first instance judgment ruled that Jiangxi Huilian Real Estate Co., Ltd. must pay
Fangda Construction Technology Company RMB38,800,206.53 and interest, and that Jiangxi Boneng Industrial Group Co., Ltd. is
jointly liable for RMB37,563,144.42 of the project payments and interest. However, the court did not support the request for the
accelerated maturity of the quality guarantee deposit and the priority compensation rights for the project payments. Fangda
Construction Technology Company appealed, and the second instance judgment supported the priority compensation rights. As of
the date of disclosure of this report, the case is under enforcement.
⑤ In December 2024, Fangda Construction Technology Company filed a lawsuit with the People's Court of Futian District,
Shenzhen, requesting Shenzhen Suhao Investment Co., Ltd. (hereinafter referred to as "Suhao Company") and Zhang Shengjie to
pay Fangda Construction Technology Company the principal and interest of the project payment for the Ziyuan Building curtain
wall project, totaling RMB18,600,899.46. The company also claimed the priority right of compensation for construction project
payments. In August 2025, the court of first instance issued a judgment ruling that Suhao Company shall pay Fangda Construction
Technology Company RMB18,171,796.03 plus overdue interest (calculated at a daily rate of 0.03% on the principal amount of
RMB17,814,305.41 from November 1, 2024 until the date of actual repayment; the RMB110,000 already paid by Suhao Company
Interim Report 2026 of China Fangda Group Co., Ltd.
shall be offset against the aforementioned interest), that Zhang Shengjie shall bear joint and several liability for Suhao Company's
obligations, and that Fangda Construction Technology Company's priority right to payment for the curtain wall works of the
Ziyuanyuan Building Project is confirmed. In September 2025, as Suhao Company and Zhang Shengjie failed to comply with the
court judgment, Fangda Construction Technology Co., Ltd. has applied to the Futian District People's Court of Shenzhen
Municipality for enforcement. As of the date of disclosure of this report, the case is under enforcement.
⑥ In August 2025, Fangda Construction & Technology Co., Ltd. filed a lawsuit with the Yuhang District People's Court of
Hangzhou City, requesting Zhejiang Fuli Real Estate Development Co., Ltd. and Hangzhou Lianfu Real Estate Development Co.,
Ltd. to pay RMB10,102,081.10 in principal and interest owed for the Fuli Center project, and asserting a claim for priority
compensation with respect to the construction project payment. In January 2026, the court of first instance ruled that Zhejiang
R&F Real Estate Development Co., Ltd. and Hangzhou Lianfu Real Estate Development Co., Ltd. shall pay Fangda Construction
Technology Company RMB9,915,000 plus interest, and confirmed Fangda Construction Technology Company's priority right to
the construction payment. As of the date of disclosure of this report, the case is under enforcement.
⑦ In March 2024, Fangda Construction Technology Company filed a lawsuit with the Nanshan District People's Court of
Shenzhen, requesting that Shenzhen Roland Sibao Property Development Co., Ltd., Shenzhen Hanking Group Co., Ltd., and
Shenzhen Hairun De Petrochemical Technology Co., Ltd. pay a total of RMB59,126,328.21 in principal and interest for
construction costs related to the Hanking Finance Project and the Hanking Times Project. In January 2025, Fangda Construction
Technology Company reached a settlement with all defendants, and the Nanshan District People's Court issued a judicial
confirmation order requiring the defendants to pay a total of RMB55,418,127.73 in principal and interest for the construction costs,
with additional personal guarantees provided by their legal representatives, Wu Shaojie and Huang Jianwen. In May 2025, as the
defendants failed to make payments as stipulated in the judicial confirmation order, Fangda Company applied to the Nanshan
District People's Court for compulsory enforcement. The parties reached an enforcement settlement in July 2025; however, after
the defendants defaulted again following the settlement, Fangda Company re-applied for compulsory enforcement in November
Finance and Hanking Times Projects. As of the date of disclosure of this report, the case is under enforcement.
(3) Contingent liabilities and their financial impact arising from providing debt guarantees for other entities.
By June 30, 2026, the Company has provided loan guarantees for the following entities:
Name of guaranteed entity Guarantee Amount (in RMB10,000) Term
Interim Report 2026 of China Fangda Group Co., Ltd.
Guarantee and mortgage
Fangda Property 106,000.00 2025.04.02-2040.03.28
guarantee
Fangda Intelligent
Guarantee 26,500.00 2024.03.15-2030.03.14
Manufacturing
Fangda Construction
Guarantee 4,000.00 2026.03.23-2027.03.23
Technology
Fangda Construction
Guarantee 4,000.00 2026.06.15-2027.06.14
Technology
Fangda Construction
Guarantee 7,000.00 2026.06.17-2027.06.17
Technology
Fangda Construction
Guarantee 5,000.00 2026.06.18-2027.06.17
Technology
Fangda Yunzhu Guarantee 600.00 2026.06.30-2027.06.29
Fangda Zhiyuan Guarantee 5,000.00 2026.01.16-2027.01.15
Fangda Zhiyuan Guarantee 3,000.00 2026.01.30-2027.01.29
Fangda Zhiyuan Guarantee 1,200.00 2026.03.27-2027.03.26
Fangda Zhiyuan Guarantee 4,000.00 2026.06.30-2027.06.29
Total 166,300.00
Note 1: Contingent liabilities caused by guarantees provided for other entities are all related guarantees between interested
entities in the Company.
Notes 2: The Company's property business provides periodic mortgage guarantee for property purchasers. The term of the
periodic guarantee lasts from the effectiveness of guarantee contracts to the completion of mortgage registration and transfer of
housing ownership certificates to banks. As of June 30, 2026, the Company's outstanding amount for the above-mentioned phased
guarantees was RMB4.99 million.
Status of non-revocation of company as at June 30, 2026:
Guarantee balance (original
Currency Deposit (RMB) Credit line used (RMB)
currency)
CNY 676,143,847.81 970,931.76 675,172,916.05
INR 38,164,259.78 2,749,315.11
Hong Kong dollars (HKD) 22,259,665.45 15,000,000.00 6,001,405.56
United States dollars (USD) 3,856,632.43 1,395,593.19 24,871,544.62
SGD 16,064,258.00 84,506,029.21
AUD 7,678,500.00 9,540,000.00 26,398,451.40
Interim Report 2026 of China Fangda Group Co., Ltd.
EUR 1,257,254.67 9,765,222.75
Philippine Peso (PHP) 40,000,000.00 4,446,720.00
UAE Dirham (AED) 9,400,000.00 17,399,992.20
Total 26,906,524.95 851,311,596.90
XVI. Post-balance-sheet Events
For the first half of 2026, the Company will not distribute cash dividends, issue bonus shares, or convert capital reserves into
share capital.
The Company has no other issues in post balance sheet period that need to be disclosed on August 21, 2026 (report date
approved by the Board of Directors).
XVII. Other material events
(1) Recognition basis and accounting policy for segment report
The Group divides its businesses into five reporting segments. The reporting segments are determined based on financial
information required by routine internal management. The management of the Company regularly reviews the operating results of
these reportable segments to make decisions on resource allocation and performance assessment.
The reporting segments are:
① Curtain wall division: production and sales of curtain wall materials, design, production and installation of building curtain
walls, curtain wall testing and maintenance services;
② Rail transit branch: assembly and processing of subway screen doors, screen door detection and maintenance services;
③ Real Estate Segment: Engaging in real estate development and operations, property leasing, and property management
services on land for which lawful use rights have been obtained.
Interim Report 2026 of China Fangda Group Co., Ltd.
(4) New energy segment: photovoltaic power generation, photovoltaic power plant sales, photovoltaic equipment R & D,
installation, and sales, and photovoltaic power plant engineering design and installation
(5) Others
The segment report information is disclosed based on the accounting policies and measurement standards used by the
segments when reporting to the management. The policies and standards should be consistent with those used in preparing the
financial statement.
(2) Financial information
In RMB
Offset between
Item Curtain wall Rail transport Real estate New energy Others Total
segments
Turnover 255,530,920.39 84,542,258.27 8,128,059.55 24,581,328.55 27,188,903.62
Including:
external 1,199,918,537.8 1,551,057,757.2
transaction 7 8
income
Inter-segment
transaction 5,545,556.28 4,091,260.31 371,818.24 17,180,268.80 27,188,903.62
income
Including:
major business 252,491,598.11 84,435,140.69 8,128,059.55 24,581,328.55 24,625,835.06
turnover
Operating cost 179,023,452.99 23,760,428.90 3,923,133.03 3,361.57 12,709,130.21
Including:
major business 176,478,658.43 23,731,928.90 3,923,133.03 3,361.57 12,309,343.69
cost
Operation cost 136,322,112.06 36,328,589.96 38,016,916.46 261,001.28 14,166,176.55 2,155,266.24 222,939,530.07
Operating
-841,373.07 40,178,877.44 22,764,912.91 3,943,925.24 10,411,790.43 12,324,507.17 64,133,625.78
profit/(loss)
Total assets 174,153,859.54
Total liabilities 607,022,892.27 44,885,527.59
(3) Others
Regional information on operating revenues:
In RMB
Item H1 2026 H1 2025
In China 1,272,446,026.69 1,459,381,780.51
Interim Report 2026 of China Fangda Group Co., Ltd.
Out of China 278,611,730.59 138,904,669.53
Total 1,551,057,757.28 1,598,286,450.04
XVIII. Notes to Financial Statements of the Parent
(1) Account age
In RMB
Age Closing balance of book value Opening balance of book value
Within 1 year (inclusive) 5,909,819.09 5,278,640.77
Over 3 years 359,129.89 359,129.89
Including: more than 5 years 359,129.89 359,129.89
Total 6,268,948.98 5,637,770.66
(2) Disclosure by bad debt accrual method
In RMB
Closing balance Opening balance
Remaining book Remaining book
Bad debt provision Bad debt provision
Type value Book value Book
Proporti Provisio value Proporti Provisio value
Amount Amount Amount Amount
on n rate on n rate
Account
receivab
le for
which
bad debt 100.00% 6.67% 100.00% 7.31%
provisio
n is
made by
group
Includin
g:
Portfolio
Commer
cial Real
Estate 100.00% 6.67% 100.00% 7.31%
and
Other
Receiva
bles
Total 100.00% 6.67% 100.00% 7.31%
Category of bad debt provision assessed on a collective basis: Group 5: Commercial real estate and other receivables
Interim Report 2026 of China Fangda Group Co., Ltd.
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Portfolio 5: Commercial Real
Estate and Other Receivables
Total 6,268,948.98 418,228.08
Group recognition basis:
If the provision for bad debts on accounts receivable is being made based on the expected credit loss general model:
□ Applicable ? Inapplicable
(3) Bad debt provision made, returned or recovered in the period
Bad debt provision made in the period:
In RMB
Change in the period
Opening Written-
Type Closing balance
balance Provision back or Canceled Others
recovered
Portfolio 5: Commercial Real
Estate and Other Receivables
Total 411,916.30 6,311.78 418,228.08
(4) Accounts receivable and contract assets with the top-5 ending balances, grouped by party owed
In RMB
Closing balance of
Percentage of total
Closing balance of provision for bad
ending balance of
Closing balance of Closing balance of accounts debts on accounts
Entity accounts
accounts receivable contract assets receivable and receivable and
receivable and
contract assets impairment of
contract assets
contract assets
No.1 2,424,244.30 0.00 2,424,244.30 38.67% 24,242.44
No.2 2,380,198.60 0.00 2,380,198.60 37.97% 23,801.99
No.3 597,256.39 0.00 597,256.39 9.53% 5,972.56
No.4 359,129.89 0.00 359,129.89 5.73% 359,129.89
No.5 144,373.66 0.00 144,373.66 2.30% 1,443.74
Total 5,905,202.84 0.00 5,905,202.84 94.20% 414,590.62
In RMB
Item Closing balance Opening balance
Other receivables 1,092,664,677.23 1,131,454,187.78
Total 1,092,664,677.23 1,131,454,187.78
Interim Report 2026 of China Fangda Group Co., Ltd.
(1) Other receivables
In RMB
By nature Closing balance of book value Opening balance of book value
Accounts between related parties within
the scope of consolidation
Others 67,915.55 46,277.60
Total 1,092,665,356.39 1,131,454,650.56
(2) Account age
In RMB
Age Closing balance of book value Opening balance of book value
Within 1 year (inclusive) 26,912,638.15 3,425,432.76
Over 3 years 759,515,183.20 441,705,402.91
Over 5 years 91,614,903.63 30,459,793.09
Total 1,092,665,356.39 1,131,454,650.56
(3) Disclosure by bad debt accrual method
In RMB
Closing balance Opening balance
Remaining book Bad debt Remaining book Bad debt
value provision value provision
Type
Provi Book value Provi Book value
Propor Propor
Amount Amount sion Amount Amount sion
tion tion
rate rate
Includin
g:
Provisio
n for bad
debts by 679.16 462.78
combina
tion
Includin
g:
First 1.00 1.00
stage % %
Related
party
funds 0.00
within
the
Interim Report 2026 of China Fangda Group Co., Ltd.
scope of
consolid
ation
Total 679.16 462.78
Number of categories for which bad debt provisions are made on a collective basis: 2
Provision for bad debts by category: Stage one
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
First stage 67,915.55 679.16 1.00%
Total 67,915.55 679.16
Description of the basis for determining the portfolio: Provision for bad debts is made on the basis of the general model of
expected credit losses.
Name of category for which bad debt provisions are made on a collective basis: Related-party balances within the consolidation
scope
In RMB
Closing balance
Name
Remaining book value Bad debt provision Provision rate
Related party funds within the
scope of consolidation
Total 1,092,597,440.84 0.00
Provision for bad debts based on general model of expected credit losses
In RMB
First stage Second stage Third stage
Expected credit
Expected credit
Bad debt provision Expected credit loss for the entire Total
loss for the entire
losses in the next duration (credit
duration (no credit
impairment)
occurred)
Balance on Thursday, January 1,
Balance on Thursday, January 1,
Provision 216.38 216.38
Balance on Tuesday, June 30, 2026 679.16 679.16
Changes in book balances with significant changes in the current period
□ Applicable ? Inapplicable
Bad debt provision made in the period:
In RMB
Change in the period
Type Opening balance Written-back Closing balance
Provision Write-off Others
or recovered
Interim Report 2026 of China Fangda Group Co., Ltd.
Portfolio 1: First stage 462.78 216.38 679.16
Total 462.78 216.38 679.16
In RMB
Balance of bad
debt provision
Entity By nature Closing balance Age Percentage (%)
at the end of
the period
Shenzhen Fangda Property
Development Co., Ltd.
Related party funds
Fangda (Jiangxi) Property 17,000,000.00 3-4 years 1.56%
within the scope of
Development Co., Ltd. 88,198,702.40 4-5 years 8.07%
consolidation
Shihui International Holding Co.,
Ltd.
Fangda Zhiyuan Technology Co.,
Ltd.
Jiangxi Fangda Intelligent
Manufacturing Technology Co., Ltd.
Total 1,092,502,977.44 99.99%
In RMB
Closing balance Opening balance
Item Remaining book Remaining book
Impairment provision Book value Impairment provision Book value
value value
Investment in
subsidiaries
Total 1,706,562,530.00 1,706,562,530.00 1,706,562,530.00 1,706,562,530.00
(1) Investment in subsidiaries
In RMB
Change (+,-) Balance
of
Beginning impairm
balance of Increa Decre Impairm ent
Invested entity Opening book value impairme sed ased ent Closing book value provisio
nt Others n at the
invest invest provisio
provisions ment ment n end of
the
period
Fangda
Construction 751,950,000.00 751,950,000.00
Technology
Interim Report 2026 of China Fangda Group Co., Ltd.
Fangda Jiangxi
New Material
Fangda
Property
Shihui
International
Fangda New
Energy
Fangda
Investment
Holding
Company
Fangda
Intelligent 247,500,000.00 247,500,000.00
Manufacturing
Fangda
Zhiyuan
Total 1,706,562,530.00 1,706,562,530.00
In RMB
Amount occurred in the current period Occurred in previous period
Item
Income Cost Income Cost
Main business 24,585,328.55 3,361.57 11,205,926.52
Total 24,585,328.55 3,361.57 11,205,926.52
Breakdown of operating revenues and operating costs:
In RMB
Others Total
Contract classification
Turnover Operating cost Turnover Operating cost
Business type 24,585,328.55 3,361.57 24,585,328.55 3,361.57
Including: Other businesses 24,585,328.55 3,361.57 24,585,328.55 3,361.57
By operating region 24,585,328.55 3,361.57 24,585,328.55 3,361.57
Including: in China 24,585,328.55 3,361.57 24,585,328.55 3,361.57
Information related to the transaction price allocated to the remaining performance obligations:
As of the end of the reporting period, the transaction price allocated to remaining performance obligations under contracts
signed but not yet fulfilled or not yet fully fulfilled amounted to RMB 50,772,364.89, of which RMB 7,181,943.80 is expected to
be recognized as revenue in the second half of 2026, RMB 11,275,422.01 in 2027, and RMB 32,314,999.08 in 2028 and thereafter.
In RMB
Amount occurred in the current
Item Occurred in previous period
period
Gains from long-term equity investment measured by
costs
Investment income from disposal of trading financial
assets, etc.
Total 34,765.14 25,548,151.98
Interim Report 2026 of China Fangda Group Co., Ltd.
XIX. Supplementary Materials
? Applicable □ Inapplicable
In RMB
Item Amount Notes
Gain/loss of non-current assets 149,689.17
Government grants recognized in the current period's profit or loss (except for
government grants that are closely related to the Company's normal business
operations, in line with national policies and in accordance with defined criteria, and
have a continuous impact on the Company's profit or loss)
Gains and losses from changes in the fair value of financial assets and liabilities held
by non-financial corporations and gains and losses from the disposal of financial assets
and liabilities, except for effective hedging operations related to the Company's normal
business operations
Gain/loss from change of fair value of investment property measured at fair value in
follow-up measurement
Other non-business income and expenditures other than the above -40,931.38
Less: Influenced amount of income tax 877,065.54
Impact on minority interests (after tax) 0.00
Total 4,782,241.65 --
Other gain/loss items satisfying the definition of non-recurring gain/loss account:
□ Applicable ? Inapplicable
The Company has no other gain/loss items satisfying the definition of non-recurring gain/loss account
Circumstance that should be defined as recurrent profit and loss to Explanation Announcement of Information Disclosure No.
□ Applicable ? Inapplicable
Weighted average Earnings per share
Profit of the report period net income/asset Basic earnings per share Diluted Earnings per share
ratio (yuan/share) (yuan/share)
Net profit attributable to common
shareholders of the Company
Net profit attributable to the common
owners of the PLC after deducting of 0.89% 0.0463 0.0463
non-recurring gains/losses
(1) Differences in net profits and assets in financial statements disclosed according to the
international and Chinese account standards
□ Applicable ? Inapplicable
Interim Report 2026 of China Fangda Group Co., Ltd.
(2) Differences in net profits and assets in financial statements disclosed according to the
international and Chinese account standards
□ Applicable ? Inapplicable
(3) Differences in financial data using domestic and foreign accounting standards, the overseas
institution name should be specified if the difference in data audited by an overseas auditor is adjusted
None
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