China Fangda Group Co., Ltd. 2019 Q1 Report
China Fangda Group Co., Ltd.
2019 Q1 Report
April 2019
1
China Fangda Group Co., Ltd. 2019 Q1 Report
I Important Statement
The members of the Board and the Company guarantee that the quarterly
report 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.
All the Directors have attended the meeting of the board meeting at which
this report was examined.
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.
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China Fangda Group Co., Ltd. 2019 Q1 Report
II. General Information
1. 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) 670,452,093.70 650,032,997.33 3.14%
Net profit attributable to shareholders of
69,998,533.09 98,377,550.44 -28.85%
the listed company (yuan)
Net profit attributable to the shareholders
of the listed company and after deducting 64,930,951.19 88,737,051.63 -26.83%
of non-recurring gain/loss (RMB)
Net cash flow generated by business
-296,237,735.96 -40,623,633.07 -629.23%
operation (RMB)
Basic earnings per share (yuan/share) 0.06 0.08 -25.00%
Diluted Earnings per share (yuan/share) 0.06 0.08 -25.00%
Decreased by 1.62
Weighted average net income/asset ratio 1.37% 2.99%
percentage points
End of the report period End of last year Year-on-year change
Total asset (RMB) 10,650,592,249.67 10,658,854,133.73 -0.08%
Net profit attributable to the shareholders
4,964,651,509.23 5,195,187,621.88 -4.44%
of the listed company (RMB)
Note: The above-mentioned decrease in “net profit attributable to shareholders of the listed company” was mainly due to the fact
that the Fangda Town project which had a higher gross profit during the reporting period and contributed more to the profit in the
previous year, was nearing the end of the planned sales area resulting in a decrease in operating income and profit. The Company's
curtain wall system and material industry, rail transportation equipment industry's operating income net profit have increased as
follows:
1. The real estate industry realized operating income of RMB 163,434,900 in the first quarter of 2019, a decrease of 40.60% over
the same period of the previous year; net profit of RMB 50,790,600 was reduced by RMB48,468,900 compared with the same
period of the previous year with a decrease of 48.83%.
2. In the first quarter of 2019, the curtain wall system and materials industry realized operating income of RMB431,126,200, an
increase of 40.56% over the same period of the previous year; the net profit was RMB14,207,100, an increase of 256.28% over the
same period of last year;
3. In the first quarter of 2019, the rail transit equipment industry realized operating income of RMB68,360,100, an increase of
17.25% over the same period of the previous year; the net profit was RMB11,233,400, an increase of 39.19% over the same period
of the previous year.
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China Fangda Group Co., Ltd. 2019 Q1 Report
Total stock equity on the trading day before disclosure:
Total number of shares on the trading day before
1,123,384,189
disclosure (in share)
Overall diluted earnings per share calculated
0.0623
using the latest number of shares (RMB/share)
Accidental gain/loss item and amount
√ Applicable □ Inapplicable
In RMB
Amount from beginning of
Item the year to the end of the Notes
report period
Non-current asset disposal gain/loss (including the write-off part
-18,130.72
for which assets impairment provision is made)
Subsidies accounted into the current income account (except the
government subsidy closely related to the enterprise’s business 2,764,802.92
and based on unified national standard quota)
Capital using expense charged to non-financial enterprises and
63,333.33
accounted into the current income account
Gain from entrusted investment or assets management 2,771,670.18
Other non-business income and expenditures other than the above 604,262.22
Less: Influenced amount of income tax 1,118,356.03
Total 5,067,581.90 --
Explanation statement should be made for accidental gain/loss items defined and accidental gain/loss items defined as regular
gain/loss items according to the Explanation Announcement of Information Disclosure No. 1 - Non-recurring gain/loss mentioned.
□ Applicable √ Inapplicable
No circumstance that should be defined as recurrent profit and loss according to Explanation Announcement of Information
Disclosure No. 1 - Non-recurring gain/loss occurs in the report period.
2. Total number of shareholders and shareholding of top 10 shareholders by the end of the
report period
1. Ordinary shareholders, preference shareholders with resumed voting rights and top 10 shareholders
In share
Number of shareholders of preferred
Number of shareholders of common stocks of which voting rights
75,069 0
shares at the end of the report period recovered in the report period (if
any)
Top 10 Shareholders
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China Fangda Group Co., Ltd. 2019 Q1 Report
Nature of Shareholding Conditional Pledging or freezing
Shareholder Number of shares
shareholder percentage shares Share status Amount
Shenzhen
Banglin Domestic
Technologies non-state legal 10.08% 113,202,154 0 Pledged 32,860,000
Development person
Co., Ltd.
Shengjiu Foreign legal
8.36% 93,875,638 0
Investment Ltd. person
Gong Qing
Cheng Shi Li He
Investment Domestic
Management non-state legal 2.38% 26,791,488 0
Partnership person
Enterprise
(limited partner)
Domestic natural
Fang Wei 1.06% 11,933,370 0
person
SUN HUNG KAI
Foreign legal
INVESTMENT 0.91% 10,175,518 0
person
SERVICES LTD
VANGUARD
EMERGING
Foreign legal
MARKETS 0.71% 7,946,483 0
person
STOCK INDEX
FUND
Shenwan
Hongyuan Foreign legal
0.54% 6,108,732 0
Securities (Hong person
Kong) Co., Ltd.
VANGUARD
TOTAL
Foreign legal
INTERNATION 0.54% 6,025,958 0
person
AL STOCK
INDEX FUND
Domestic natural
Qu Chunlin 0.36% 4,038,961 0
person
First Shanghai
Foreign legal
Securities 0.36% 4,001,704 0
person
Limited
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China Fangda Group Co., Ltd. 2019 Q1 Report
Top 10 holders of unconditional shares
Category of shares
Shareholder Amount of shares without sales restriction Category of
Amount
shares
Shenzhen Banglin Technologies RMB common
113,202,154 113,202,154
Development Co., Ltd. shares
Foreign shares
Shengjiu Investment Ltd. 93,875,638 listed in domestic 93,875,638
exchanges
Gong Qing Cheng Shi Li He
RMB common
Investment Management Partnership 26,791,488 26,791,488
shares
Enterprise (limited partner)
RMB common
Fang Wei 11,933,370 11,933,370
shares
Foreign shares
SUN HUNG KAI INVESTMENT
10,175,518 listed in domestic 10,175,518
SERVICES LTD
exchanges
Foreign shares
VANGUARD EMERGING
7,946,483 listed in domestic 7,946,483
MARKETS STOCK INDEX FUND
exchanges
Foreign shares
Shenwan Hongyuan Securities
6,108,732 listed in domestic 6,108,732
(Hong Kong) Co., Ltd.
exchanges
VANGUARD TOTAL Foreign shares
INTERNATIONAL STOCK INDEX 6,025,958 listed in domestic 6,025,958
FUND exchanges
RMB common
Qu Chunlin 4,038,961 4,038,961
shares
Foreign shares
First Shanghai Securities Limited 4,001,704 listed in domestic 4,001,704
exchanges
Among the shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu
Investment Co., Ltd. are parties action-in-concert. Shenzhen Banglin Technology
Notes to top ten shareholder
Development Co., Ltd. and Gong Qing Cheng Shi Li He Investment Management Partnership
relationship or "action in concert"
Enterprise are related parties. The Company is not notified of other action-in-concert or
related parties among the other holders of current shares.
Top-10 common share shareholders
None
participating in margin trade (if any)
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
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China Fangda Group Co., Ltd. 2019 Q1 Report
□ Yes √ No
No agreed re-purchasing by the Company’s top 10 shareholders of common shares and top 10 shareholders of unconditional common
shares in the report period
2. Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of
the report period
□ Applicable √ Inapplicable
7
China Fangda Group Co., Ltd. 2019 Q1 Report
III Significant Events
1. Major changes in accounting items and financial data in the report period and reasons
√ Applicable □ Inapplicable
Item March 31, 2019 December 31, Change Cause of change
2019
Other current assets 79,973,007.98 51,698,111.14 54.69% Mainly due to the increase in the input tax to be
verified and to be deducted
Short-term loans 700,000,000.00 208,000,000.00 236.54% Mainly due to increase in bank borrowings
Prepayment received 174,471,020.46 278,577,848.54 -37.37% Mainly due to income recognized in this period
Employees’ wage 20,937,500.20 44,513,062.17 -52.96% Annual bonus paid
payable
Non-current liabilities 450,000,000.00 200,000,000.00 125.00% Reclassified long-term loans due within 1 year
due in 1 year
Surplus reserves 54,042,195.07 120,475,221.40 -55.14% Mainly due to the repurchase of B shares in the
current period
Item Amount of the Last period Change Cause of change
Current Term
Taxes and surcharges 33,241,693.55 57,107,989.44 -41.79% Mainly due to the decrease in taxes on real estate
sales business
Administrative 48,521,803.12 37,182,042.44 30.50% Mainly due to the increase in operating income of
expense the Company's curtain wall system and materials
and subway screen door business, resulting in an
increase in related expenses
Income tax expenses 19,513,176.48 33,501,097.89 -41.75% Mainly due to the decrease in profits which is due
to the decrease in income tax
Cash flow generated -296,237,735.96 -40,623,633.07 -629.23% Mainly due to the decrease in collection of real
by business operations, estate sales and the decrease in the receipt of
net margins received
Net cash flow 292,596,452.25 29,253,596.52 900.21% Mainly due to the increase in bank loans and the
generated by financing payment of cash dividends in the current period.
activities
2. Progress of key issues and its impacts and solutions
√ Applicable □ Inapplicable
(1) Property project development progress:
1. Shenzhen Fangda Town Project: In the first quarter of 2019, the Fangda Town project achieved a sales area of 2,540.9 square
meters with a cumulative sales area of 84,951.4 square meters; the commercial investment signing rate was 91%; as of the end of the
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China Fangda Group Co., Ltd. 2019 Q1 Report
first quarter of 2019, the total rented area of building1# is 12,462.44 square meters and the occupancy rate is 17.18%.
2. Nanchang Fenghuangzhou Project: Construction started in May 2018. The project covers an area of about 17,000 square
meters with a total construction area of about 93,000 square meters. The total construction area is 66,000 square meters covering
commercial hotel and apartment buildings. The office building is an integrated commercial complex. As of the end of the first
quarter of 2019, the two-story basement in the main project has been basically completed. The project plans to start pre-sale in the
second half of 2019 and to complete the acceptance in the first half of 2020. At present, the project construction is progressing in
accordance with the expected engineering nodes.
3. Shenzhen Fangda Bangshen Industrial Park Project: The project is located in Fuyong, Bao'an District, Shenzhen. It covers an
area of 20,714.9 square meters and is currently an industrial plant. The project has begun to declare the project. As of the end of the
first quarter of 2019 the project is still in the stage of approval.
4. Shenzhen Henggang Dakanghe renewal project: At the end of September 2018, Shenzhen Zhongrong Litai Investment Co.,
Ltd., a holding subsidiary of Fangda Real Estate Co., Ltd., a wholly-owned subsidiary of the Company, and Shenzhen Henggang
Dakang Co., Ltd. and Shangzhong branch of the Shenzhen Henggang Dakang Co., Ltd. signed a letter of intent for the cooperation of
the Dakanghe urban renewal project. The project is located in Dakang Village, Yuanshan Sub-district, Longgang District, Shenzhen,
north to Yanhe Road, south to Shanzixia Road, west to Xiaokang Road, and east to Yuying Street. The area to be demolished is about
80,000 square meters. The project is mainly for residential functions and is subject to government approval. The project work is
currently being actively promoted.
(2) Progress in the implementation of share repurchase
√ Applicable □ Inapplicable
The Company held the 10th meeting of the 8th Board of Directors and the first extraordinary shareholders meeting of 2018 on
September 10 2018 and September 27 2018 respectively and reviewed and approved the repurchase of some domestically listed
foreign shares (B shares). From December 19 2018 to January 3 2019, the Company repurchased 32,097,497 B shares through
centralized bidding. On January 11, 2019, the Company handled the cancellation procedures of the above repurchased shares at
China Securities Depository and Clearing Co. Ltd. Shenzhen Branch. The number of shares repurchased and canceled in this
repurchase accounted for 2.78% of the total share capital of the Company before the repurchase and cancellation and the highest
repurchase price was HK$3.58 per share and the lowest price was HK$3.24 per share. The actual repayment of the repurchased
shares was HK$113,012,632.21 (including transaction fees) and the repurchase has been completed.
(3) Progress in the implementation of the reduction of shareholding shares by means of centralized bidding
□ Applicable √ Inapplicable
3. Commitments that have not been 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
4. Forecast of operating performance between January and June in 2019
Warning and reasons of possible net loss or substantial change from the last period between the beginning of the year and the end of
the next report period
□ Applicable √ Inapplicable
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China Fangda Group Co., Ltd. 2019 Q1 Report
5. Securities investment
□ Applicable √ Inapplicable
The Company made no investment in securities in the report period
6. Derivative investment
√ Applicable □ Inapplicable
In RMB10,000
Proporti
on of
closing
investm
Actual
Derivati Impairm ent
Initial Amount Closing gain/lo
ve Related Amount ent amount
Relation Initial Start End investm sold in investm ss in
investm transacti Type in this provisio in the
ship amount date date ent this ent the
ent on period n (if closing
amount period amount report
operator any) net
period
assets in
the
report
period
Shangha
i Non-affi Shanghai Decemb
2,535.7 July 13, 2,535.7 8,659.5 10,627.
Futures liated No aluminu er 10, 567.74 2.14% 28.88
6 2018 6 2 53
Exchan party m 2019
ge
2,535.7 2,535.7 8,659.5 10,627.
Total -- -- 567.74 2.14% 28.88
6 6 2 53
Capital source Self-owned fund
Lawsuit (if any) None
Disclosure date of derivative
investment approval by the Board of October 31, 2017
Directors (if any)
Disclosure date of derivative
investment approval by the
Shareholders’ Meeting (if any)
Risk analysis and control measures
To prevent the risk of fluctuation of raw material prices, the Company adopted the
for the derivative holding in the
aluminum futures exchanged at the domestic futures exchange to provide hedging for
report period (including without
aluminum as a raw material for the Company. The Company has set up and implemented the
limitation market, liquidity, credit,
Provincial Regulations on China Fangda Group Domestic Futures Hedging to prevent risks.
operation and legal risks)
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China Fangda Group Co., Ltd. 2019 Q1 Report
Changes in the market price or fair
value of the derivative in the report
period, the analysis of the derivative’s
Fair value of derivatives are measured at open prices in the futures market
fair value should disclose the method
used and related assumptions and
parameters.
Material changes in the accounting
policies and rules related to the
None
derivative in the report period
compared to last period
Opinions of independent directors on
the Company’s derivative investment None
and risk controlling
7. Reception of investigations, communications, or interviews in the reporting period
√ Applicable □ Inapplicable
Time/date Way Visitor Disclosure of information
Repurchase of B-shares, production and
During the reporting period Telephone communication Individual
operation conditions, future development
8. Incompliant external guarantee
□ Applicable √ Inapplicable
The Company made no incompliant external guarantee in the report period.
9. 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.
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China Fangda Group Co., Ltd. 2019 Q1 Report
IV Financial Statements
1. Financial statements
1. Consolidated Balance Sheet
Prepared by: China Fangda Group Co., Ltd.
March 31, 2019
In RMB
Item March 31, 2019 December 31, 2018
Current asset:
Monetary capital 1,339,642,022.35 1,389,062,083.76
Settlement provision
Outgoing call loan
Transactional financial assets
Financial assets measured at fair
value with variations accounted into
current income account
Derivative financial assets
Receivable note and accounts
2,060,730,171.91 2,060,214,724.69
receivable
Including: receivable notes 104,429,526.36 140,139,692.84
Account receivable 1,956,300,645.55 1,920,075,031.85
Prepayment 43,610,238.60 46,454,844.74
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other receivables 174,747,902.46 139,990,188.26
Including: interest receivable 63,333.33
Dividend receivable
Repurchasing of financial assets
Inventory 641,842,902.19 651,405,832.29
Contract assets
Assets held for sales
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China Fangda Group Co., Ltd. 2019 Q1 Report
Non-current assets due in 1 year
Other current assets 79,973,007.98 51,698,111.14
Total current assets 4,340,546,245.49 4,338,825,784.88
Non-current assets:
Loan and advancement provided
Debt investment
Sellable financial assets 21,674,008.23
Other debt investment
Investment held until mature
Long-term receivable
Long-term share equity investment 69,575,093.68 70,105,657.88
Investment in other equity tools 21,674,008.23
Other non-current financial assets
Investment real estate 5,261,170,385.58 5,256,442,406.63
Fixed assets 436,213,822.62 455,274,241.83
Construction in process 62,043,689.87 58,269,452.72
Productive biological assets
Gas & petrol
Use right assets
Intangible assets 79,763,381.64 80,313,240.67
R&D expense
Goodwill
Long-term amortizable expenses 2,589,588.63 2,114,331.46
Deferred income tax assets 352,819,194.26 356,474,925.76
Other non-current assets 24,196,839.67 19,360,083.67
Total of non-current assets 6,310,046,004.18 6,320,028,348.85
Total of assets 10,650,592,249.67 10,658,854,133.73
Current liabilities
Short-term loans 700,000,000.00 208,000,000.00
Loans from Central Bank
Call loan received
Transactional financial liabilities
Financial liabilities measured at fair
value with variations accounted into
current income account
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China Fangda Group Co., Ltd. 2019 Q1 Report
Derivative financial liabilities 596,100.00 1,625,725.00
Payable notes and accounts 1,373,704,342.44 1,547,495,316.83
Prepayment received 174,471,020.46 278,577,848.54
Selling of repurchased financial assets
Deposit received and held for others
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 20,937,500.20 44,513,062.17
Taxes payable 87,685,331.21 107,709,999.19
Other payables 810,800,621.62 813,118,699.84
Including: interest payable 2,381,447.47 2,098,971.44
Dividend payable
Fees and commissions payable
Reinsurance fee payable
Contract liabilities
Liabilities held for sales
Non-current liabilities due in 1 year 450,000,000.00 200,000,000.00
Other current liabilities 10,362,063.92 9,328,682.25
Total current liabilities 3,628,556,979.85 3,210,369,333.82
Non-current liabilities:
Insurance contract provision
Long-term loans 993,978,153.39 1,193,978,153.39
Bond payable
Including: preferred stock
Perpetual bond
Lease liabilities
Long-term payable
Long-term employees’ wage payable
Anticipated liabilities 7,762,939.83 6,831,162.99
Deferred earning 10,274,011.31 10,401,161.30
Deferred income tax liabilities 1,045,368,656.06 1,042,086,700.35
Other non-current liabilities
Total of non-current liabilities 2,057,383,760.59 2,253,297,178.03
Total liabilities 5,685,940,740.44 5,463,666,511.85
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China Fangda Group Co., Ltd. 2019 Q1 Report
Owner’s equity:
Share capital 1,123,384,189.00 1,155,481,686.00
Other equity tools
Including: preferred stock
Perpetual bond
Capital reserves 1,454,191.59 1,454,191.59
Less: Shares in stock 10,831,437.66
Other miscellaneous income 3,052,044.74 7,382,087.59
Special reserves
Surplus reserves 54,042,195.07 120,475,221.40
Common risk provisions
Retained profit 3,782,718,888.83 3,921,225,872.96
Total of owner’s equity belong to the
4,964,651,509.23 5,195,187,621.88
parent company
Minor shareholders’ equity
Total of owners’ equity 4,964,651,509.23 5,195,187,621.88
Total of liabilities and owner’s interest 10,650,592,249.67 10,658,854,133.73
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua
2. Balance Sheet of the Parent Company
In RMB
Item March 31, 2019 December 31, 2018
Current asset:
Monetary capital 486,430,783.14 410,118,157.55
Transactional financial assets
Financial assets measured at fair
value with variations accounted into
current income account
Derivative financial assets
Receivable note and accounts
200,000,000.00 200,471,039.12
receivable
Including: receivable notes 200,000,000.00 200,000,000.00
Account receivable 471,039.12
Prepayment 4,382,073.52 6,733,047.16
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China Fangda Group Co., Ltd. 2019 Q1 Report
Other receivables 1,036,391,923.93 822,543,653.04
Including: interest receivable
Dividend receivable 100,000,000.00 100,000,000.00
Inventory
Contract assets
Assets held for sales
Non-current assets due in 1 year
Other current assets 716,922.84 919,388.18
Total current assets 1,727,921,703.43 1,440,785,285.05
Non-current assets:
Debt investment
Sellable financial assets 21,674,008.23
Other debt investment
Investment held until mature
Long-term receivable
Long-term share equity investment 983,339,494.35 983,339,494.35
Investment in other equity tools 21,674,008.23
Other non-current financial assets
Investment real estate 309,189,866.37 309,189,866.37
Fixed assets 53,256,576.04 53,784,811.23
Construction in process
Productive biological assets
Gas & petrol
Use right assets
Intangible assets 2,044,566.88 2,112,301.97
R&D expense
Goodwill
Long-term amortizable expenses 847,499.66 917,499.68
Deferred income tax assets 36,267,056.09 34,555,598.81
Other non-current assets
Total of non-current assets 1,406,619,067.62 1,405,573,580.64
Total of assets 3,134,540,771.05 2,846,358,865.69
Current liabilities
Short-term loans 500,000,000.00 200,000,000.00
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China Fangda Group Co., Ltd. 2019 Q1 Report
Transactional financial liabilities
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Payable notes and accounts 606,941.85 676,941.85
Prepayment received 694,791.63 733,274.16
Contract liabilities
Employees’ wage payable 992,194.04 2,145,763.39
Taxes payable 505,047.04 341,004.65
Other payables 507,603,551.39 300,006,406.51
Including: interest payable 981,915.27 740,208.33
Dividend payable
Liabilities held for sales
Non-current liabilities due in 1 year 200,000,000.00
Other current liabilities
Total current liabilities 1,210,402,525.95 503,903,390.56
Non-current liabilities:
Long-term loans 400,000,000.00 500,000,000.00
Bond payable
Including: preferred stock
Perpetual bond
Lease liabilities
Long-term payable
Long-term employees’ wage payable
Anticipated liabilities
Deferred earning
Deferred income tax liabilities 64,080,311.72 64,130,617.41
Other non-current liabilities
Total of non-current liabilities 464,080,311.72 564,130,617.41
Total liabilities 1,674,482,837.67 1,068,034,007.97
Owner’s equity:
Share capital 1,123,384,189.00 1,155,481,686.00
Other equity tools
Including: preferred stock
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China Fangda Group Co., Ltd. 2019 Q1 Report
Perpetual bond
Capital reserves 360,835.52 360,835.52
Less: Shares in stock 10,831,437.66
Other miscellaneous income 3,590,127.88 8,756,553.46
Special reserves
Surplus reserves 54,042,195.07 120,475,221.40
Retained profit 278,680,585.91 504,081,999.00
Total of owners’ equity 1,460,057,933.38 1,778,324,857.72
Total of liabilities and owner’s interest 3,134,540,771.05 2,846,358,865.69
3. Consolidated Income Statement
In RMB
Item Amount occurred in the current period Occurred in previous period
1. Total revenue 670,452,093.70 650,032,997.33
Incl. Business income 670,452,093.70 650,032,997.33
Interest income
Insurance fee earned
Fee and commission received
2. Total business cost 586,532,424.53 528,787,371.03
Incl. Business cost 467,237,374.40 398,153,159.63
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy reserves
provided
Insurance policy dividend paid
Reinsurance expenses
Taxes and surcharges 33,241,693.55 57,107,989.44
Sales expense 12,854,606.25 9,988,975.74
Administrative expense 48,521,803.12 37,182,042.44
R&D cost 4,150,525.60 3,638,625.75
Financial expenses 24,040,788.16 19,744,665.08
Including: interest cost 18,523,514.10 15,732,959.05
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China Fangda Group Co., Ltd. 2019 Q1 Report
Interest income 1,220,042.73 1,783,355.11
Asset impairment loss 2,971,912.96
Credit impairment loss -3,514,366.55
Add: other gains 2,764,802.92 2,330,454.12
Investment gains (“-” for loss) 2,241,105.98 6,728,202.21
Incl. Investment gains from affiliates
-530,564.20 -1,547,820.36
and joint ventures
Exchange gains ("-" for loss)
Net open hedge gains (“-” for loss)
Gains from change of fair value
-58,700.00
(“-“ for loss)
Investment gains ("-" for loss) -18,130.72 59,007.69
3. Operational profit ("-" for loss) 88,907,447.35 130,304,590.32
Plus: non-operational income 875,385.81 1,641,111.57
Less: non-operational expenditure 271,123.59 67,053.56
4. Gross profit ("-" for loss) 89,511,709.57 131,878,648.33
Less: Income tax expenses 19,513,176.48 33,501,097.89
5. Net profit ("-" for net loss) 69,998,533.09 98,377,550.44
(1) By operating consistency
1. Net profit from continuous operation ("-"
69,998,533.09 98,377,550.44
for net loss)
2. Net profit from discontinuous operation
("-" for net loss)
(2) By ownership
1. Net profit attributable to the owners of
69,998,533.09 98,377,550.44
parent company
2. Minor shareholders’ equity
6. After-tax net amount of other misc. incomes 836,382.73 -6,598,862.36
After-tax net amount of other misc. incomes
836,382.73 -6,598,862.36
attributed to parent's owner
(1) Other misc. incomes that cannot be
re-classified into gain and loss
1. Re-measure the change in the
defined benefit plan
2. Other comprehensive income that
cannot be transferred to profit or loss under the
19
China Fangda Group Co., Ltd. 2019 Q1 Report
equity method
3. Fair value change of investment
in other equity tools
4. Fair value change of the
company's credit risk
5. Others
(2) Other misc. incomes that will be
836,382.73 -6,598,862.36
re-classified into gain and loss
1. Other comprehensive income that
can be transferred to profit or loss under the
equity method
2. Fair value change of other debt
investment
3. Change in the fair value of
financial asset for sale
4. Gains and losses from changes in
fair value of available-for-sale financial assets
5. Held-to-mature investment
reclassified as gain and loss in the financial
assets for sales
6. Other credit investment credit
impairment provisions
7. Cash flow hedge reserve 1,029,625.00 -6,514,470.00
8. Translation difference of foreign
-193,242.27 -84,392.36
exchange statement
9. Others
After-tax net of other misc. income attributed
to minority shareholders
7. Total of misc. incomes 70,834,915.82 91,778,688.08
Total of misc. incomes attributable to the
70,834,915.82 91,778,688.08
owners of the parent company
Total misc gains attributable to the minor
shareholders
8. Earnings per share:
(1) Basic earnings per share 0.06 0.08
(2) Diluted earnings per share 0.06 0.08
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.
20
China Fangda Group Co., Ltd. 2019 Q1 Report
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua
4. Income Statement of the Parent Company
In RMB
Item Amount occurred in the current period Occurred in previous period
1. Turnover 9,808,576.55 7,377,165.13
Less: Operation cost 2,950,845.09 162,820.81
Taxes and surcharges 323,222.03 47,689.87
Sales expense
Administrative expense 6,952,633.68 5,079,218.61
R&D cost
Financial expenses 8,008,968.34 2,247,754.36
Including: interest cost 6,297,956.94 3,047,141.01
Interest income 241,185.83 797,849.60
Asset impairment loss -114.99
Credit impairment loss -4,480.08
Add: other gains 200,000.00 100,000.00
Investment gains (“-” for loss) 982,583.57 1,476,812.48
Incl. Investment gains from
affiliates and joint ventures
Net open hedge gains (“-” for
loss)
Gains from change of fair
value (“-“ for loss)
Investment gains ("-" for loss)
2. Operational profit (“-” for loss) -7,240,028.94 1,416,608.95
Plus: non-operational income 8,947.57 2,300.00
Less: non-operational expenditure 6,388.64
3. Gross profit (“-” for loss) -7,237,470.01 1,418,908.95
Less: Income tax expenses -1,789,154.52 415,478.32
4. Net profit (“-” for net loss) -5,448,315.49 1,003,430.63
(1) Net profit from continuous
-5,448,315.49 1,003,430.63
operation ("-" for net loss)
(2) Net profit from discontinuous
operation ("-" for net loss)
21
China Fangda Group Co., Ltd. 2019 Q1 Report
5. After-tax net amount of other misc.
incomes
(1) Other misc. incomes that
cannot be re-classified into gain and
loss
1. Re-measure the change
in the defined benefit plan
2. Other comprehensive
income that cannot be transferred to
profit or loss under the equity method
3. Fair value change of
investment in other equity tools
4. Fair value change of the
company's credit risk
5. Others
(2) Other misc. incomes that will
be re-classified into gain and loss
1. Other comprehensive
income that can be transferred to profit
or loss under the equity method
2. Fair value change of
other debt investment
3. Change in the fair value
of financial asset for sale
4. Gains and losses from
changes in fair value of
available-for-sale financial assets
5. Held-to-mature
investment reclassified as gain and loss
in the financial assets for sales
6. Other credit investment
credit impairment provisions
7. Cash flow hedge reserve
8. Translation difference of
foreign exchange statement
9. Others
6. Total of misc. incomes -5,448,315.49 1,003,430.63
7. Earnings per share:
22
China Fangda Group Co., Ltd. 2019 Q1 Report
(1) Basic earnings per share
(2) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Item Amount occurred in the current period Occurred in previous period
1. Net cash flow from business
operations:
Cash received from sales of
598,615,290.91 663,119,560.92
products and providing of services
Net increase of customer deposits
and capital kept for brother company
Net increase of loans from central
bank
Net increase of inter-bank loans
from other financial bodies
Cash received against original
insurance contract
Net cash received from
reinsurance business
Net increase of client deposit and
investment
Increase in proposal of financial
assets measured at fair value with
variations accounted into current
income account
Cash received as interest,
processing fee, and commission
Net increase of inter-bank fund
received
Net increase of repurchasing
business
Net cash received from trading
securities
Tax refunded 901,931.07 422,809.19
Other cash received from business
21,534,849.71 194,722,039.64
operation
Sub-total of cash inflow from business 621,052,071.69 858,264,409.75
23
China Fangda Group Co., Ltd. 2019 Q1 Report
operations
Cash paid for purchasing products
557,177,871.33 559,325,123.89
and services
Net increase of client trade and
advance
Net increase of savings in central
bank and brother company
Cash paid for original contract
claim
Net increase in financial assets
held for trading purposes
Net increase in funds dismantled
Cash paid for interest, processing
fee and commission
Cash paid for policy dividend
Cash paid to and for the staff 92,365,794.06 79,300,919.33
Taxes paid 70,963,606.86 55,517,226.34
Other cash paid for business
196,782,535.40 204,744,773.26
activities
Sub-total of cash outflow from
917,289,807.65 898,888,042.82
business operations
Cash flow generated by business
-296,237,735.96 -40,623,633.07
operations, net
2. Cash flow generated by investment:
Cash received from investment
973,200,000.00 1,873,000,000.00
recovery
Cash received as investment profit 2,771,670.18 8,015,145.87
Net cash retrieved from disposal
of fixed assets, intangible assets, and 13,225,019.48 360.00
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
989,196,689.66 1,881,015,505.87
from investment
Cash paid for construction of
49,192,556.62 21,487,326.27
fixed assets, intangible assets and other
24
China Fangda Group Co., Ltd. 2019 Q1 Report
long-term assets
Cash paid as investment 1,193,400,000.00 2,091,800,000.00
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 1,242,592,556.62 2,113,287,326.27
Cash flow generated by investment
-253,395,866.96 -232,271,820.40
activities, net
3. Cash flow generated by financing
activities:
Cash received from investment
Incl. Cash received from
investment attracted by subsidiaries
from minority shareholders
Cash received from borrowed
600,000,000.00 148,000,000.00
loans
Cash received from bond placing
Other cash received from
39,406.61
financing activities
Subtotal of cash inflow from financing
600,039,406.61 148,000,000.00
activities
Cash paid to repay debts 58,000,000.00 100,000,000.00
Cash paid as dividend, profit, or
249,442,954.36 18,746,403.48
interests
Incl. Dividend and profit paid by
subsidiaries to minority shareholders
Other cash paid for financing
activities
Subtotal of cash outflow from
307,442,954.36 118,746,403.48
financing activities
Net cash flow generated by financing
292,596,452.25 29,253,596.52
activities
4. Influence of exchange rate changes
-844,162.82 -1,891,037.80
on cash and cash equivalents
5. Net increase in cash and cash
-257,881,313.49 -245,532,894.75
equivalents
25
China Fangda Group Co., Ltd. 2019 Q1 Report
Plus: Balance of cash and cash
956,190,890.68 931,285,535.55
equivalents at the beginning of term
6. Balance of cash and cash equivalents
698,309,577.19 685,752,640.80
at the end of the period
6. Cash Flow Statement of the Parent Company
In RMB
Item Amount occurred in the current period Occurred in previous period
1. Net cash flow from business
operations:
Cash received from sales of
7,829,887.29 140,521,112.40
products and providing of services
Tax refunded
Other cash received from business
857,398,618.28 454,176,095.73
operation
Sub-total of cash inflow from business
865,228,505.57 594,697,208.13
operations
Cash paid for purchasing products
1,486,439.86 117,995.70
and services
Cash paid to and for the staff 5,580,350.62 4,310,306.35
Taxes paid 802,896.19 1,200,412.23
Other cash paid for business
863,556,002.15 725,018,532.50
activities
Sub-total of cash outflow from
871,425,688.82 730,647,246.78
business operations
Cash flow generated by business
-6,197,183.25 -135,950,038.65
operations, net
2. Cash flow generated by investment:
Cash received from investment
518,000,000.00 942,880,000.00
recovery
Cash received as investment profit 982,583.57 2,496,812.48
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
26
China Fangda Group Co., Ltd. 2019 Q1 Report
received
Sub-total of cash inflow generated
518,982,583.57 945,376,812.48
from investment
Cash paid for construction of
fixed assets, intangible assets and other 18,000.00 415,830.00
long-term assets
Cash paid as investment 518,000,000.00 1,040,870,000.00
Net cash paid for acquiring
subsidiaries and other operational units
Other cash paid for investment
Subtotal of cash outflows 518,018,000.00 1,041,285,830.00
Cash flow generated by investment
964,583.57 -95,909,017.52
activities, net
3. Cash flow generated by financing
activities:
Cash received from investment
Cash received from borrowed
400,000,000.00 140,000,000.00
loans
Cash received from bond placing
Other cash received from
39,406.61
financing activities
Subtotal of cash inflow from financing
400,039,406.61 140,000,000.00
activities
Cash paid to repay debts
Cash paid as dividend, profit, or
230,221,221.83 2,060,208.34
interests
Other cash paid for financing
activities
Subtotal of cash outflow from
230,221,221.83 2,060,208.34
financing activities
Net cash flow generated by financing
169,818,184.78 137,939,791.66
activities
4. Influence of exchange rate changes
576.24
on cash and cash equivalents
5. Net increase in cash and cash
164,586,161.34 -93,919,264.51
equivalents
Plus: Balance of cash and cash
281,594,621.80 310,049,329.68
equivalents at the beginning of term
27
China Fangda Group Co., Ltd. 2019 Q1 Report
6. Balance of cash and cash equivalents
446,180,783.14 216,130,065.17
at the end of the period
II. Financial Statement Adjustment
1. The first implementation of the new financial instruments guidelines, new income standards, new lease
standards, adjustments the first implementation of the financial statements at the beginning of the year
√ Applicable □ Inapplicable
Consolidated Balance Sheet
In RMB
Item December 31, 2018 January 1, 2019 Adjustment
Current asset:
Monetary capital 1,389,062,083.76 1,389,062,083.76
Receivable note and
2,060,214,724.69 2,072,905,381.88 12,690,657.19
accounts receivable
Including: receivable
140,139,692.84 140,139,692.84
notes
Account
1,920,075,031.85 1,932,765,689.04 12,690,657.19
receivable
Prepayment 46,454,844.74 46,454,844.74
Other receivables 139,990,188.26 142,135,200.55 2,145,012.29
Inventory 651,405,832.29 651,405,832.29
Other current assets 51,698,111.14 51,698,111.14
Total current assets 4,338,825,784.88 4,353,661,454.36 14,835,669.48
Non-current assets:
Sellable financial assets 21,674,008.23 Inapplicable -21,674,008.23
Long-term share equity
70,105,657.88 70,105,657.88
investment
Investment in other
Inapplicable 21,674,008.23 21,674,008.23
equity tools
Investment real estate 5,256,442,406.63 5,256,442,406.63
Fixed assets 455,274,241.83 455,274,241.83
Construction in process 58,269,452.72 58,269,452.72
Intangible assets 80,313,240.67 80,313,240.67
Long-term amortizable
2,114,331.46 2,114,331.46
expenses
Deferred income tax 356,474,925.76 353,169,011.31 -3,305,914.45
28
China Fangda Group Co., Ltd. 2019 Q1 Report
assets
Other non-current assets 19,360,083.67 19,360,083.67
Total of non-current assets 6,320,028,348.85 6,316,722,434.40 -3,305,914.45
Total of assets 10,658,854,133.73 10,670,383,888.76 11,529,755.03
Current liabilities
Short-term loans 208,000,000.00 208,000,000.00
Derivative financial
1,625,725.00 1,625,725.00
liabilities
Payable notes and
1,547,495,316.83 1,547,495,316.83
accounts
Prepayment received 278,577,848.54 278,577,848.54
Employees’ wage
44,513,062.17 44,513,062.17
payable
Taxes payable 107,709,999.19 107,709,999.19
Other payables 813,118,699.84 813,118,699.84
Including: interest
2,098,971.44 2,098,971.44
payable
Non-current liabilities
200,000,000.00 200,000,000.00
due in 1 year
Other current liabilities 9,328,682.25 9,328,682.25
Total current liabilities 3,210,369,333.82 3,210,369,333.82
Non-current liabilities:
Long-term loans 1,193,978,153.39 1,193,978,153.39
Anticipated liabilities 6,831,162.99 6,831,162.99
Deferred earning 10,401,161.30 10,401,161.30
Deferred income tax
1,042,086,700.35 1,042,086,700.35
liabilities
Total of non-current
2,253,297,178.03 2,253,297,178.03
liabilities
Total liabilities 5,463,666,511.85 5,463,666,511.85
Owner’s equity:
Share capital 1,155,481,686.00 1,155,481,686.00
Capital reserves 1,454,191.59 1,454,191.59
Less: Shares in stock 10,831,437.66 10,831,437.66
Other miscellaneous
7,382,087.59 2,215,662.01 -5,166,425.58
income
29
China Fangda Group Co., Ltd. 2019 Q1 Report
Surplus reserves 120,475,221.40 121,000,081.43 524,860.03
Retained profit 3,921,225,872.96 3,937,397,193.54 16,171,320.58
Total of owner’s equity
5,195,187,621.88 5,206,717,376.91 11,529,755.03
belong to the parent company
Total of owners’ equity 5,195,187,621.88 5,206,717,376.91 11,529,755.03
Total of liabilities and
10,658,854,133.73 10,670,383,888.76 11,529,755.03
owner’s interest
About the adjustment
In 2017, the Ministry of Finance revised and released the "Accounting Standards for Business Enterprises No. 22 - Recognition
and Measurement of Financial Instruments", "Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets",
"Accounting Standards for Business Enterprises No. 24 - Hedge Accounting", "Accounting Standards for Business Enterprises No.
37 - Financial Instruments Presentation" (hereinafter collectively referred to as the "New Financial Instruments Standards") and
requires enterprises listed in China to implement the above accounting standards from January 1, 2019.
In accordance with the above requirements, the Company will implement the new financial instrument standard from January 1,
2019 and reclassify the original financial assets into transactional financial assets, derivative financial assets, other equity instrument
investments and other non-current financial assets. Non-transaction equity instrument investment is designated as financial assets
measured at fair value through other comprehensive income and is presented in “other equity instrument investment” items. At the
same time, the loss provision prepared by the original financial instrument standard is adjusted to be in accordance with the new
financial instrument. According to the regulations, it is not necessary to repeat the data of the 2018 comparative period when
preparing the report for each period of 2019, but it is necessary to make retrospective adjustments to the retained earnings or other
comprehensive income at the beginning of 2019.
Balance Sheet of the Parent Company
In RMB
Item December 31, 2018 January 1, 2019 Adjustment
Current asset:
Monetary capital 410,118,157.55 410,118,157.55
Receivable note and
200,471,039.12 200,479,634.37 8,595.25
accounts receivable
Including: receivable
200,000,000.00 200,000,000.00
notes
Account
471,039.12 479,634.37 8,595.25
receivable
Prepayment 6,733,047.16 6,733,047.16
Other receivables 822,543,653.04 822,644,623.99 100,970.95
Dividend
100,000,000.00 100,000,000.00
receivable
Other current assets 919,388.18 919,388.18
Total current assets 1,440,785,285.05 1,440,894,851.25 109,566.20
Non-current assets:
30
China Fangda Group Co., Ltd. 2019 Q1 Report
Sellable financial assets 21,674,008.23 Inapplicable -21,674,008.23
Long-term share equity
983,339,494.35 983,339,494.35
investment
Investment in other
Inapplicable 21,674,008.23 21,674,008.23
equity tools
Investment real estate 309,189,866.37 309,189,866.37
Fixed assets 53,784,811.23 53,784,811.23
Intangible assets 2,112,301.97 2,112,301.97
Long-term amortizable
917,499.68 917,499.68
expenses
Deferred income tax
34,555,598.81 34,528,207.26 -27,391.55
assets
Total of non-current assets 1,405,573,580.64 1,405,546,189.09 -27,391.55
Total of assets 2,846,358,865.69 2,846,441,040.34 82,174.65
Current liabilities
Short-term loans 200,000,000.00 200,000,000.00
Payable notes and
676,941.85 676,941.85
accounts
Prepayment received 733,274.16 733,274.16
Employees’ wage
2,145,763.39 2,145,763.39
payable
Taxes payable 341,004.65 341,004.65
Other payables 300,006,406.51 300,006,406.51
Including: interest
740,208.33 740,208.33
payable
Total current liabilities 503,903,390.56 503,903,390.56
Non-current liabilities:
Long-term loans 500,000,000.00 500,000,000.00
Deferred income tax
64,130,617.41 64,130,617.41
liabilities
Total of non-current
564,130,617.41 564,130,617.41
liabilities
Total liabilities 1,068,034,007.97 1,068,034,007.97
Owner’s equity:
Share capital 1,155,481,686.00 1,155,481,686.00
Capital reserves 360,835.52 360,835.52
31
China Fangda Group Co., Ltd. 2019 Q1 Report
Less: Shares in stock 10,831,437.66 10,831,437.66
Other miscellaneous
8,756,553.46 3,590,127.88 -5,166,425.58
income
Surplus reserves 120,475,221.40 121,000,081.43 524,860.03
Retained profit 504,081,999.00 508,805,739.20 4,723,740.20
Total of owners’ equity 1,778,324,857.72 1,778,407,032.37 82,174.65
Total of liabilities and
2,846,358,865.69 2,846,441,040.34 82,174.65
owner’s interest
About the adjustment
In 2017, the Ministry of Finance revised and released the "Accounting Standards for Business Enterprises No. 22 - Recognition
and Measurement of Financial Instruments", "Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets",
"Accounting Standards for Business Enterprises No. 24 - Hedge Accounting", "Accounting Standards for Business Enterprises No.
37 - Financial Instruments Presentation" (hereinafter collectively referred to as the "New Financial Instruments Standards") and
requires enterprises listed in China to implement the above accounting standards from January 1, 2019.
In accordance with the above requirements, the Company will implement the new financial instrument standard from January 1,
2019 and reclassify the original financial assets into transactional financial assets, derivative financial assets, other equity instrument
investments and other non-current financial assets. Non-transaction equity instrument investment is designated as financial assets
measured at fair value through other comprehensive income and is presented in “other equity instrument investment” items. At the
same time, the loss provision prepared by the original financial instrument standard is adjusted to be in accordance with the new
financial instrument. According to the regulations, it is not necessary to repeat the data of the 2018 comparative period when
preparing the report for each period of 2019, but it is necessary to make retrospective adjustments to the retained earnings or other
comprehensive income at the beginning of 2019.
2. Description of the first implementation of the new financial instrument criteria, new lease standard
retrospective adjustment of the previous period comparison data
□ Applicable √ Inapplicable
3. Auditor’s Report
Whether the Q1 report is audited
□ Yes √ No
The Q2 Report is not audited.
China Fangda Group Co., Ltd.
Legal representative: Xiong Jianming
April 23, 2019
32
