[年报]方大Ｂ(200055):2021年年度报告（英文版）
原标题:方大Ｂ:2021年年度报告（英文版） 2021 Annual Report March 2022 Chapter I Important Statement, Table of Contents and Definitions The members of the Board and the Company guarantee that the announcement is free from any false information, misleading statement or material omission and are jointly and severally liable for the information’s truthfulness, accuracy and integrity. Mr. Xiong Jianming, the Chairman of Board, Mr. Lin Kebin, the Chief Financial Officer, and Mr. Wu Bohua, the manager of accounting department declare: The Financial Report carried in this report is authentic and completed. All the Directors have attended the meeting of the board meeting at which this report was examined. Forward-looking statements involved in this report including future plans do not make any material promise to investors. Investors should pay attention to investment risks. The Company needs to comply with the disclosure requirements of the decoration and decoration industry and 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. The company has described the existing market risks, management risks and production and operation risks in this report. Please refer to the risks that may be faced mentioned in10. Prospects for the Company's Future Development in ChapterIII Management Discussion and Analysis. The Board meeting reviewed and approved the profit distribution preplan: distributing cash dividend of RMB0.50 (tax included) for each ten shares to all shareholders on the basis of 1,073,874,227 shares of the Company and no dividend share is issued to shareholders. No reserve is capitalized. After the announcement of the Company’s profit distribution plan to the time of implementation, if the total share capital changes, in accordance with the principle of “distributing cash dividends of RMB 0.50 (tax included) for every 10 shares”, the total share capital after the market closes on the equity registration date when the profit distribution plan is implemented shall be used. The total amount of cash dividends will be disclosed in the Company's profit distribution implementation announcement. Contents Chapter I Important Statement, Table of Contents and Definitions .........................................................................................................2 Chapter II About the Company and Financial Highlights ........................................................................................................................8 Chapter III Management Discussion and Analysis ............................................................................................................................... 14 Chapter IV Corporation Governance .................................................................................................................................................... 46 Chapter V Environmental and social responsibility ............................................................................................................................... 65 Chapter VI Significant Events .............................................................................................................................................................. 68 Chapter VII Changes in Share Capital and Shareholders ...................................................................................................................... 80 Chapter VIII Preferred Shares .............................................................................................................................................................. 87 Chapter IX Information about the Company’s Securities ...................................................................................................................... 88 Chapter X Financial Statements ........................................................................................................................................................... 89 Reference 1. Financial statements stamped and signed by the legal representative, CFO and accounting manager; 2. Original copy of the Auditors’ Report under the seal of the CPA and signed by and under the seal of certified accountants; 3. Originals of all documents and manuscripts of Public Notices of the Company disclosed in public. Definitions Terms Refers to Description Fangda Group, company, the Company Refers to China Fangda Group Co., Ltd. Articles of Association Refers to Articles of Association of China Fangda Group Co., Ltd. Meeting of shareholders Refers to Meetings of shareholders of China Fangda Group Co., Ltd. Board of Directors Refers to Board of Directors of China Fangda Group Co., Ltd. Supervisory Committee Refers to Supervisory Committee of China Fangda Group Co., Ltd. Banglin Technology Refers to Shenzhen Banglin Technologies Development Co., Ltd. Shilihe Co. Refers to Gong Qing Cheng Shi Li He Investment Management Partnership Enterprise (limited partner) Shengjiu Co. Refers to Shengjiu Investment Ltd. Fangda Jianke Refers to Shenzhen Fangda Jianke Group Co., Ltd. Fangda Zhichuang Refers to The original name was Fangda Zhichuang Technology Co., Ltd., now it is renamed Fangda Zhiyuan 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 Chengda Fangda Construction Technology Co., Ltd. Fangda Dongguan New Material Refers to Dongguan Fangda New Material Co., Ltd. Kechuangyuan Software Refers Shenzhen Qianhai Kechuangyuan Software Co., Ltd. to Fangda Property Refers to Shenzhen Fangda Property Management Co., Ltd. Fangda Jiangxi Property Refers to Fangda (Jiangxi) Property Development Co., Ltd. Fangda Hongjun Investment Refers to Shenzhen Hongjun Investment Co., Ltd. Fangda Investment Refers to Shenzhen Fangda Investment Partnership (Limited Partnership) Fangda Lifu Investment Refers to Shenzhen Lifu Investment Co., Ltd Fangda Xunfu Investment Refers to Shenzhen Xunfu Investment Co., Ltd Yunzhu Refers to The original name is Shenzhen Yunzhu Industrial Co., Ltd., now it is renamed Shenzhen Fangda Yunzhu Technology Co., Ltd. SZSE Refers to Shenzhen Stock Exchange Chapter II About the Company and Financial Highlights 1. Company profiles Stock ID Fangda Group, Fangda B Stock code 000055, 200055 Modified stock ID (if any) None Stock Exchange Shenzhen Stock Exchange Chinese name China Fangda Group Co., Ltd. Chinese abbreviation Fangda Group English name (if any) CHINA FANGDA GROUP CO., LTD. English abbreviation (if any) CFGC Legal representative Xiong Jianming Registered address Fangda Technology Building, Kejinan 12th Avenue, High-tech Zone, Hi-tech Park South Zone, Nanshan District, Shenzhen, PR China. Zip code 518057 Changes in the Company's registered address None Office address 39th Floor, Building T1, Fangda Town, No.2, Longzhu 4th Road, Nanshan District, Shenzhen Zip code 518055 Website http://www.fangda.com [email protected] 2. Contacts and liaisons Secretary of the Board Representative of Stock Affairs PRINTED NAME Xiao Yangjian Guo Linchen Address 39th Floor, Building T1, Fangda Town, No.2, Longzhu 4th Road, Nanshan District, Shenzhen 39th Floor, Building T1, Fangda Town, No.2, Longzhu 4th Road, Nanshan District, Shenzhen Telephone 86(755) 26788571 ext. 6622 86(755) 26788571 ext. 6622 Fax 86(755)26788353 86(755)26788353 [email protected] [email protected] 3. Information disclosure and inquiring Website of the stock exchange where the company Shenzhen Stock Exchange http://www.szse.cn discloses its annual report Names and websites of the media where the Company discloses its annual report China Securities Journal, Security Times, Shanghai Securities Daily, Securities Daily, Hong Kong Commercial Daily and www.cninfo.com.cn Place for information inquiry 39th Floor, Building T1, Fangda Town, No.2, Longzhu 4th Road, Nanshan District, Shenzhen 4. Registration changes Organization code None Changes in main businesses since the listing of the Company None Changes in the controlling shareholders (if any) None 5. Other information Public accountants employed by the Company Public accountants RSM Thornton (limited liability partnership) Address 901-22 to 901-26, Foreign Trade Building, No.22, Fuchengmenwai Street, Xicheng District, Beijing, China Signing accountant names Xie Peiren, Zeng Hui, Hu Gaosheng Sponsor engaged by the Company to perform continued supervision and guide during the reporting period □ Applicable √ Inapplicable Financial advisor engaged by the Company to perform continued supervision and guide during the reporting period □ Applicable √ Inapplicable 6. Financial Highlight Whether the Company needs to make retroactive adjustment or restatement of financial data of previous years √ Yes □ No Retroactive adjustment or restatement Consolidation of entities under common control 2021 2020 Increase/decrease 2019 Before adjustment After adjustment After adjustment Before adjustment After adjustment Turnover (yuan) 3,557,724,397.54 2,979,296,410.16 3,000,191,773.63 18.58% 3,005,749,558.66 3,025,276,905.82 Net profit attributable to shareholders of the listed 222,168,142.53 382,051,466.98 389,344,290.74 -42.94% 347,771,182.73 354,342,005.33 company (yuan) Net profit attributable to the shareholders of the listed company and after deducting of non-recurring gain/loss (yuan) 167,650,395.54 376,968,729.62 376,968,729.62 -55.53% 291,449,314.27 291,449,314.27 Net cash flow generated by business operation (yuan) -63,425,296.29 548,709,785.90 554,967,948.96 -111.43% -5,284,830.77 -516,693.04 Basic earnings per share (yuan/share) 0.21 0.35 0.35 -40.00% 0.31 0.31 Diluted Earnings per share (yuan/share) 0.21 0.35 0.35 -40.00% 0.31 0.31 Weighted average net income/asset ratio 4.09% 7.26% 7.37% -3.28% 6.82% 6.93% End of 2021 End of 2020 Increase/decrease from the end of last year End of 2019 Before adjustment After adjustment After adjustment Before adjustment After adjustment Total asset (yuan) 12,261,338,518.66 11,866,857,250.39 11,891,623,391.03 3.11% 11,369,964,580.11 11,395,464,044.45 Net profit attributable to the shareholders of the listed company (RMB) 5,524,039,886.94 5,380,857,155.39 5,392,694,939.64 2.44% 5,182,795,079.67 5,203,037,880.44 Note: 1. The net profit attributable to the owners of the parent company this year decreased by 42.94% compared with the same period of the previous year, mainly because: (1) The expected credit loss rate of accounts receivable and contract assets was estimated according to the accounting standards in the previous year. The change resulted in an increase of RMB 93,672,500 in net profit in the previous year; (2) the settlement of land value-added tax and settlement of construction contracts for the Shenzhen Fangda Town project caused a net profit increase of RMB 107,382,800 in the previous year. After deducting the impacts, the net profit attributable to shareholders of the listed company for the current year increased by 17.99% over the same period of the previous year. 2. The net cash flow from operating activities in the current year decreased by 111.43% compared with the same period of last year, mainly due to the decrease of cash flow from operating activities compared with the same period of last year due to the settlement and payment of land value-added tax of RMB349,316,800 yuan in the reporting period of Shenzhen Fangda Town project of real estate business. The Company's net profit before and after non-recurring gains and losses was negative for the last three fiscal years, and the latest audit report showed uncertainty about the Company's ability to continue operating □ Yes √ No Net profit before and after deducting non-re current gains and losses is negative □ Yes √ No 7. Differences in accounting data under domestic and foreign accounting standards 1. Differences in net profits and assets in financial statements disclosed according to the international and Chinese account standards □ Applicable √ Inapplicable There is no difference in net profits and assets in financial statements disclosed according to the international and Chinese account standards during the report period. 2. Differences in net profits and assets in financial statements disclosed according to the overseas and Chinese account standards □ Applicable √ Inapplicable There is no difference in net profits and assets in financial statements disclosed according to the international and Chinese account standards during the report period. 8. Financial highlights by quarters In RMB Q1 Q2 Q3 Q4 Turnover 646,737,766.14 922,041,068.84 871,353,200.73 1,117,592,361.83 Net profit attributable to the shareholders of the listed company 75,170,490.26 36,318,211.07 65,539,582.16 45,139,859.04 Net profit attributable to the shareholders of the listed company and after deducting of non-recurring gain/loss 58,982,525.69 38,113,269.26 57,157,352.87 13,397,247.72 Cash flow generated by business operations, net -426,501,733.83 -74,422,811.17 9,031,184.97 428,468,063.74 Where there is difference between the above-mentioned financial data or sum and related financial data in quarter report and interim report disclosed by the Company □ Yes √ No 9. Accidental gain/loss item and amount √ Applicable □ Inapplicable In RMB Item 2021 2020 2019 Notes Non-current asset disposal gain/loss (including the write-off part for which assets -2,291,048.05 -541,838.10 -101,676.86 impairment provision is made) Government subsidies accounted into current gain/loss account, other than those closely related to the Company’s common business, comply with the national policy and continues to enjoy at certain fixed rate or amount. 12,459,417.63 12,872,885.30 5,411,736.29 Capital using expense charged to non-financial enterprises and accounted into the current income account 585,760.51 Net gain between the beginning and merger day of subsidiaries generated by merger of companies under common control 18,912.61 7,705,820.11 6,715,508.62 Gain/loss from change of fair value of transactional financial asset and liabilities, and investment gains from disposal of transactional financial assets and liabilities and sellable financial assets, other than valid period value instruments related to the Company’s common businesses 8,060,481.70 8,759,056.18 9,236,658.20 Write-back of impairment provision of receivables for which impairment test is performed individually 31,951,043.05 100,023.62 RMB 31,951,043.05 was reversed this year. During the previous period, the credit status of the two customers involved in the receivables had deteriorated significantly. The impairment test has been conducted separately and the impairment provision has been made separately. As a result, the company has endeavored relentlessly to ensure that the case is successful and the bankruptcy of the other party is applied to obtain the priority of repayment of the project funds, etc., and finally recover the aforementioned funds. Gain/loss from commissioned loans 393,485.98 442,060.24 Gain/loss from change of fair value of investment property measured at fair value in follow-up measurement 20,921,813.65 19,205,841.18 42,608,311.58 Other non-business income and expenditures other than the above -3,897,195.15 -34,752,456.16 -1,108,687.74 Other gain/loss items satisfying the definition of non-recurring gain/loss account -936,467.20 Less: Influenced amount of income tax 12,358,051.51 778,490.70 164,700.18 Influenced amount of minority shareholders’ equity (after-tax) 347,626.94 488,742.67 -104,163.98 Total 54,517,746.99 12,375,561.12 62,892,691.06 -- 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 Chapter III Management Discussion and Analysis 1. Major businesses of the Company during the report period Founded in 1991 in Shenzhen Special Economic Zone, the company is based in Nanshan District, Shenzhen. The Company's B shares were listed on the Shenzhen Stock Exchange on November 29, 1995, and its A shares were listed on the Shenzhen Stock Exchange on April 15, 1996. 2021 marks the 30th anniversary of the Company. In the past thirty years, the Company has remained committed to its core business and adhered to its original mission of green, low-carbon and environmental protection, and has successively developed products such as smart curtain walls, solar photovoltaic curtain walls, PVDF aluminum veneer, and rail transit screen doors. Since its conception, the company has always adhered to the philosophy "technology-based, innovation-based", and has created Fangda's craftsmanship in pursuit of outstanding quality. Our smart curtain wall system, PVDF aluminum veneer, rail transit screen door system, and other products have become global industry benchmarks. In the period under review, the Company's "Urban Rail Transit Platform Safety Door" product was identified as the single champion of manufacturing by the Ministry of Industry and Information Technology of the People's Republic of China, and its subsidiary Shanghai Zhijian Technology Co., Ltd. was rated as a "specialized, special, and new" enterprise in Songjiang District, Shanghai. Currently, the company has 7 national-level high-tech enterprises and two provincial-level enterprise technology research centers. The Company has established an industrial layout with its headquarters located in Shenzhen and its manufacturing bases in Dongguan, Foshan, Nanchang, Shanghai, and Chengdu and has established branches in the "Belt and Road" regions including HKSAR, Singapore, India, Australia and Bangladesh. A new development strategy pattern with domestic circulation as the main body and dual circulations within each country and region has been actively promoted. In 2021, the domestic and foreign environment remained complex, with many uncertain and unstable factors. There is still a high level of COVID-10 disease epidemics in the world, and domestic epidemics continue to occur widely and frequently. Bulk raw material prices fluctuate greatly. The operations are extremely challenging. Through the joint efforts of all employees, the company has completed its 2021 business goals primarily under the leadership of the Board of Directors and management team. An operating income of 3,557,724,400 yuan was realized by the Company during the reporting period, which represents an increase of 18.58% over the same period last year; the net profit attributable to the owners of the parent company was 222,168,100 yuan, which represents a decrease of 42.94% over the same period last year. The main reasons for the decline were: (1) In the same period of the previous year, the accounting estimates were changed in accordance with the accounting standards for the expected credit loss rate of accounts receivable and contract assets, resulting in an increase of RMB 93.6725 million in net profit for the same period of the previous year; (2) The Shenzhen Fangda Town project in the same period of the previous year underwent land value-added tax liquidation and the settlement of the engineering contract caused an increase of RMB 107,382,800 in net profit in the same period of the previous year. After deducting the impact, the net profit attributable to shareholders of the listed company for the reporting period increased by 17.99% over the same period of the previous year. By the end of the reporting period, the company's order reserve reached 6,988.2372 million yuan (excluding real estate pre-sale). This represents an increase of 41.86% over the same period in the previous year, which was 1.96 times the operating income in 2021, laying the foundation for the Company's production and operation in 2022. (1) Smart curtain wall system and material 1. Industry development This 14th Five-Year Plan and 2035 Vision Outline outlines the general direction of the future development of green, low-carbon, prefabricated, information-based and new-type industrialization in the construction industry. As part of the "dual carbon" policy and the energy structure adjustment, the curtain wall industry is facing the need to conserve energy and reduce emissions from the source. As one of the main technologies of photovoltaic buildings, building-integrated photovoltaic (BIPV) curtain walls are becoming increasingly popular among the industry and receiving market attention. This is expected to bring about new opportunities in the curtain wall industry. The Company began investing in building-integrated photovoltaic (BIPV) product research and development in 2002, and the product began going into use in 2003 after maturing technologically and accumulating experience. In light of China's new infrastructure and urban construction, as well as the dividends brought by the construction of the Guangdong-Hong Kong-Macao Greater Bay Area and the Shenzhen Demonstration Zone, the construction of large-scale public buildings has been vigorously driven. The curtain wall market has also seen a large increase in demand. The Company will continue to take advantage of the industry's regional leadership, grasp the policy dividend, and follow the national development strategy to promote the Company's rapid development. 2. Business (1) Main products and purpose Smart curtain walls are among the Company's major products and have been widely used in high-end office buildings, corporate headquarters, urban complexes, high-end residences and hotels, urban public buildings, and other applications. The Company has participated in the construction of Shenzhen International Convention and Exhibition Center, Shenzhen Hanking Center, Shenzhen Tencent Digital Building, Beijing Yanqi Lake International Capital, Shanghai Bund SOHO, Chengdu Tianfu International Conference Center, Nanjing Alibaba Jiangsu headquarters, Guangzhou International Financial Forum (IFF) permanent venue, Wuhan Hubei Radio and Television Media Building, Angola Luanda Airport, Australia Victoria Square and other landmark buildings smart curtain wall projects (2) Main business modes, specific risks and changes; During the reporting period, the Company's main business model did not change. The Company's smart curtain wall design and construction contract orders are mainly obtained through the bidding mode (open bidding, invitational bidding). Based on the orders, the Company provides the overall solution of design, raw material procurement, production and processing, construction and installation and after-sales service. Due to the long period of order implementation, it is greatly affected by national industrial policies, raw material prices, and fluctuations in the labor market. Different orders have different technical requirements. It is impossible to simply copy the existing experience, and the requirements for technology and management are relatively high. (3) Market competition pattern in which the Company is located and the Company's market position The domestic building curtain wall market is relatively competitive, and the market competition pattern has changed in recent years. High-quality enterprises with stable cash flow, strong technological innovation ability, high comprehensive management level and strong brand have been continuously developed and expanded, and the market share of leading enterprises in the industry has continued to expand. Shenzhen Fangda Jianke Co., Ltd., a wholly-owned subsidiary of the Company, has the highest qualifications for curtain wall design and construction enterprises in China - the first-class qualification for professional contracting of architectural curtain wall engineering and the first-class qualification for architectural curtain wall engineering design. It is the leading enterprise in China's curtain wall industry. According to the "2020 Comprehensive Statistics of Building Decoration Industry (Curtain Wall)" compiled by the China Building Decoration Association, Fangda Jianke ranked third. Since it was established 30 years ago, Fangda Jianke has won the highest awards in the national construction industry, including "Luban Award", "National Quality Engineering Award", "Zhan Tianyou Civil Engineering Award", "China Building Decoration Award", and over 200 provincial and ministerial awards. Fangda trademark was named a "China Famous Trademark" and won "International Credit Brand". The Company has participated in drafting more than 20 national or industry standards, including "Energy-saving Design Standards for Public Buildings", setting 18 Chinese enterprise records. (4) Business drive As of the end of the reporting period, the Company's curtain wall system and material industry realized an operating income of RMB 2,584,704,000, an increase of 19.53% over the same period of the previous year; a net profit of RMB 64,339,000 and a gross profit margin of 14.49%. The key drivers of performance are as follows: ① By relying on the quality of the product, the technical strength, and the brand's influence, the market has achieved remarkable growth In 2021, the Company overcame multiple obstacles and relied on strong performance, technical strength, and brand influence to achieve notable results in market development. During the reporting period, the Company's curtain wall system and material industry won new bids and signed more than 50 high-end curtain wall projects with a total order value of RMB5.02 billion, an increase of 67.95% over the same period of the previous year, creating a record for the Company. A total of 15 projects have a contract value exceeding RMB100 million, with the single order amount being large and the order quality being high. The smart curtain walls projects that the company won and signed include Tianyin Building, Shenzhen Bay Super Headquarters, Shenzhen Kingdee Software Park, Shenzhen Kangtai Group Building, Shenzhen Youbixuan Building, Wuhan Hubei Radio and Television Media Building, Alibaba Jiangsu Headquarters, Foshan Shunde Rural Commercial Bank Headquarters, Shenzhen Qianhai Kerry Center, Shenzhen Exhibition Bay Xingang Plaza, Xi'an Wanda ONE, Melbourne Domain House, and IGLU Russell Street. By the end of the reporting period, the Company's order reserve of curtain wall system and materials industry was RMB5,402,710,100, an increase of 62.68% over the same period of the previous year, which was 2.09 times the operating revenue of curtain wall system and materials industry in 2021, laying a solid foundation for the sustainable and healthy development of the Company. ② Strengthen project plan management and improve execution efficiency Over the reporting period, the Company continued to improve the contract-centered project planning management, optimized the organizational structure, enhanced work guidelines for each link of the project execution process, and further promoted refined micro-circulation management. The efficiency and quality of project execution were continuously improved. During the period under reporting, more than 30 curtain wall projects around the world were successfully completed and accepted, and the projects under construction all achieved "zero accident" safety, providing high-efficiency and high-quality development services. As an example, the Shenzhen International Hotel project has created a miracle in the industry, breaking new heights in production, construction and installation. The installation of 11,375 units was completed in 55 days, creating a "new speed record". During the reporting period, eight high-end curtain wall projects undertaken by the Company won national awards, among which Shenzhen Qianhai International Conference Center and Chengdu Fangda Chengda Center won the Luban Award; Shenzhen Energy Building, Shenzhen Zhuoyuebaozhong Times Square, the second bid section of Xi'an Laian Center Phase 1 and the green energy and environmental protection project in Haining won the National Quality Engineering Award; Shenzhen International Convention and Exhibition Center and Shenzhen Bay Innovation and Technology Center won the China Construction Engineering Decoration Award, showing the Company's leading position and brand competitiveness in the industry. ③ With the smart factory as the core, promote a leap from "manufacturing" to "intelligent manufacturing". The Company deeply focuses on high-quality development, and promotes intelligent and digital construction in a variety of work links such as design, production, and construction, and takes the lead in building an intelligent production line in the industry. BIM technology, self-developed project management systems, production management systems, and other information management tools for curtain wall design and construction management as well as application of advanced technologies such as robot intelligent welding and automatic glue, enabled by Internet technology track the Company's products and continuously improve efficiency, ensure quality, and realize data-based management of the intelligent manufacturing process. ④ Strengthen technological innovation and improve market competitiveness As a leading enterprise in the curtain wall industry, the Company has adhered to the principle of "technology-based, innovation as its source" and has been recognized as one of the first national high-tech enterprises in the same industry in China. In addition, the Company has set up R&D institutions such as enterprise post-doctoral workstations, engineering technology centers, and curtain wall research and design centers. During the reporting period, 14 patents were granted, including a modular frame curtain wall system, a prefabricated ceiling curtain wall, and other patents. Using innovative technology has enhanced the efficiency of production, construction and installation, and improved the project quality and safety. Furthermore, the Company's patent for the "unitized porcelain panel curtain wall" won the honorary certificate of the 19th Shenzhen Enterprise Innovation Record and the Science and Technology Innovation Achievement Award of the Guangdong Architectural Decoration Industry. During the reporting period, the Company has successively acquired 548 patents for curtain wall products, 19 software patents, and participated in the compilation of 22 national technical specifications and standards. Its independent innovation capacity and technology have reached the advanced level in the same industry in China, which has effectively promoted the technological progress and development of the high-end curtain wall industry. (5) Industry qualification types and validity period The Company has a Class A qualification for building curtain wall engineering contracting and class A qualification for building curtain wall engineering design. It is the highest level for curtain wall design and construction companies in China. During the reporting period, the Company's relevant qualifications have not changed significantly, and the validity period has not expired. The detail can be found in Chapter VI, XVI, and Other material events of this report. (6) Quality control system, implementation standards, control measures and overall evaluation Quality control system: As a leading enterprise of high-end curtain wall, the Company pays attention to quality management. It is the first in the industry to pass ISO9001, ISO14001, OHSAS18001 international and domestic dual certification, GB/T29490 intellectual property management system certification, and is the first to establish sales, design, supply, production, one-stop quality control system such as construction, after-sales, customer service, etc., implement strict quality control and supervision for each link, and create a strong quality management system. Implementation of the standard: In the process of building curtain wall business, the Company strictly complies with GB/T21086-2007 "Building Curtain Wall", JG/T231-2007 "Building Glass Lighting Roof" and other national and industrial standards. Control measures: The Company has established complete and effective quality control measures and quality management organization, introduced digital information management, and digitally coded the company's businesses, various raw materials, factory workshop and construction site operation procedures through computer information integration system, The eight systems (CRM customer relationship management system, OA office system, HR human resources system, ERP financial management system, MES production management system, PMS engineering management system, VPO supply management system and QAS quality safety management system) realize the rapid transmission, sharing and collaborative application of information through cloud terminal technology. Strictly implement various quality management and control measures to provide customers with high-quality products and services. Overall evaluation: The Company's quality control system and executive standards meet the relevant requirements of the current relevant national norms and standards, maintain good operation, and provide customers with stable and reliable products and services. (7) Major project quality problem during the reporting period None. (2) Rail transport screen door business 1. Industry development As an important part of high-end manufacturing equipment, rail transit equipment is closely related to the national economic development, urban rail transit development and construction planning. In recent years, rail transit has become more and more important in urban development. On March 5, 2021, the 14th Five Year Plan for National Economic and Social Development of the People's Republic of China and the Outline of Long-Term Objectives for 2035 proposed to "accelerate the construction of a transportation power". The Modern Comprehensive Transportation System in the 14th Five Year Plan issued by the State Council clearly defined "building a metropolitan area on the track". The National Development and Reform Commission has successively approved the establishment of the Guangdong-Hong Kong-Macao Greater Bay Area (Intercity) Railway Construction Plan, the Yangtze River Delta Region Multi-level Rail Transit Plan, and the Chengdu-Chongqing Economic Circle Multi-level Rail Transit Plan, among others. These plans apply to intercity transportation and suburban (regional) railways within metropolitan areas. Focusing on the general goal of "building urban agglomerations and metropolitan areas on track", the rail transit of urban agglomerations and metropolitan areas such as Guangdong, Hong Kong, Macao, Yangtze River Delta, Beijing, Tianjin, Hebei and Chengdu Chongqing will usher in an important period of inter city railway and municipal (suburban) railway construction. With the rapid development of cities, the operation demand of urban rail transit in China will grow continuously in the future, which is conducive to the sustainable development of rail transit related industries. While the mileage of rail transit lines continues to grow, some rail transit PSD projects built in the early stage have also entered the maintenance period, and the maintenance service business will also usher in sustained and stable development space in the future. It is worth mentioning that rail transit safety doors may be widely used in high-speed rail platforms in the future, and high-speed rail transit safety doors belong to the same category of products as the Company's existing metro rail transit screen doors. Therefore, rail transit screen doors will open new application scenarios and open a new broad market space. 2. Business (1) Main products and purpose The Company's main product is the rail transit platform screen door system, which is installed at the edge of the platform of the urban rail transit station to isolate the train from the platform waiting room. The product types include closed screen door, full height non closed screen door and half height screen door. It plays an important role in the operation of rail transit and has the functions of safety, environmental protection and energy saving. (2) Main business model The Company is a supplier and service provider of rail transit PSD system integrating R&D, design, manufacturing, installation and commissioning and technical services, with a complete industrial chain. The Company mainly obtains orders by participating in project bidding, carries out customized design, process treatment, raw material procurement, production and installation of equipment system and provides technical maintenance services on the basis of independent research and development according to the requirements of different customers. The business model has not changed during the reporting period. Focusing on the whole life cycle service of rail transit platform screen door system, the Company promotes the application of new technology in the planning stage, provides high-quality products in the construction stage, improves customer operation efficiency in the maintenance stage, and develops into an overall solution provider of rail transit platform screen door system in the whole life cycle. (3) Market competition pattern in which the Company is located and the Company's market position The Company is a leader and promoter in the field of construction, operation and maintenance of PSD system in urban rail transit. The Company's rail transit PSD system products have independent intellectual property rights, and the total number of patents and software copyrights ranks in the forefront of the same industry. The Company is the first enterprise in the same industry in China to pass the compliance certification of RAMS standard system. It has presided over the preparation of the first domestic industry standard Platform Screen Door of Urban Rail Transit, which has filled the gap in China. The Company has been forging ahead in the domestic and foreign markets with its technical advantages for more than 20 years through continuous research and development. It has undertaken 104 subway platform door projects in 43 cities around the world, and has become the largest rail transit platform screen door system supplier and service provider in the world. During the reporting period, the Company's "urban rail transit platform safety door" was recognized as the single champion product of the manufacturing industry by the Ministry of Industry and Information Technology, and the "intelligent rail transit platform door system engineering technology research center" built by its subsidiary Fangda Zhiyuan technology was rated as the "Guangdong Engineering Technology Research Center". The Company is a comprehensive leading enterprise in the field of technology, market and brand in the construction, operation and maintenance of PSD system of urban rail transit. (4) Business drive ① High customer recognition and steady development of the Company Through years of dedicated operation, the Company can independently provide customers with integrated professional services of rail transit PSD system products integrating R&D, design, manufacturing, installation and commissioning, technical services and maintenance. It has outstanding advantages such as safety, reliability, availability and maintainability, has been highly recognized by customers and has accumulated extensive customer resources. Qingdao Metro Line 2 and Xiamen Metro Line 1 have signed orders for the reconstruction of Xi'an Metro Line 4 and Shenzhen Metro Line 8, and other urban shielding projects of Xi'an Metro Line 4 and Xiamen Metro Line 1. By the end of the （未完）  |