方大集团股份有限公司
CHINA FANGDA GROUP CO., LTD.
Interim Report 2009
Important Prompt
The Board of Directors and the directors of the Company guarantee that there are no significant
omissions, fictitious or misleading statements carried in the Report and we will accept individual
and joint responsibilities for the truthfulness, accuracy and completeness of the Report.
This report has been examined and adopted by the 20th meeting of the 4th term of Board. Mr. Shao
Hanqing, the independent director absent the meeting for business engagement, he entrusted
independent director Guo Jinlong to exercise his right of voting and issued the independent
opinions. The other directors all presented the meeting.
The Financial Statement carried in the Semi-annual Report was not audited.
Mr. Xiong Jianming, the Chairman of Board, and Mr. Lin Kebin, the Chief Financial Officer
declare: the Financial Report carried in this report is authentic and completed.
This report is prepared both in English and Chinese. When there is any conflict in understanding,
the Chinese version shall prevail.2
Definitions
The following terms are defined to the companies goes after them unless
otherwise stated.
the Company : China Fangda Group Co., Ltd.
The Group: the Company and its subsidiaries
Fangda Decoration: Shenzhen Fangda Decoration Engineering Co., Ltd.
Fangda Yide: Fangda Yide New Material Co., Ltd.
Fangda Aluminium: Jiangxi Fangda New-type Aluminium Co., Ltd.
Fangda Guoke: Shenzhen Fangda Guoke Electri-Optical Technical Co., Ltd.
Fangda Automatic: Shenzhen Fangda Automatic System Co., Ltd.
Fangda New Materials: Fangda New Materials (Jiangxi) Co., Ltd.
Shenzhen Woke: Shenzhen Woke Semiconductor Lighting Co., Ltd.
Shenyang Fangda: Shenyang Fangda Semiconductor Lighting Co., Ltd.
HK Junjia: Hong Kong Junjia Group Co., Ltd.
Banglin: Shenzhen Banglin Technology Development Co., Ltd.
Shilihe: Shenzhen Shilihe Investment Co., Ltd.
Onforce: Onforce International Co., Ltd.
LED: GaN Lighting Diode Semiconductor3
Table of Contents
I. Company
Profile........................................................................................................
.....................4
II. Change in Capital Share and Major
Shareholders..........................................................................7
III. Particulars about the Directors, Supervisors and Senior
Executives............................................ 9
IV. Report of the
Board..........................................................................................................
...........10
V. Significant
Events.........................................................................................................
................14
VI. Financial
Report.........................................................................................................
................ 20
VII. Documents for
Reference......................................................................................................
....204
I. Company Profile
1. Company Profile:
(1) Legal Name of the Company in Chinese and English
In Chinese: 方大集团股份有限公司（abbreviation：方大集团）
In English: CHINA FANGDA GROUP CO., LTD. （abbreviation：CFDC ）
(2) Legal Representative: Mr. Xiong Jianming
(3) Secretary of the Board: Mr. Zhou Zhigang
Securities affair liaison: Ms. Wang Shuiyin
Address: Fangda Town, Xili Longjing, Nanshan District, Shenzhen, PRC
Post code: 518055
Tel: 86(755) 26788571 ext. 6622
Fax: 86(755) 26788353
Email: zqb@fangda.com
(4) Registered Address of the Company: Fangda Building, Kejinan 12th Avenue, High-tech Zone,
Shenzhen, PR China.
Post code: 518057
Head office: Technology Building, Fangda Town, Xili Longjing, Nanshan District, Shenzhen,
PRC
Post code: 518055
Email: fd@fangda.com
Website: http://www.fangda.com
(5) Official Medias of Information Disclosure
China Securities Journal, Security Times, Shanghai Securities Daily, Hong Kong Commercial
Daily
Website assigned by China Securities Regulatory Commission for the disclosing of Annual
Report:
http://www.cninfo.com.cn
Website of the Company where the Semi-Annual Report is available:
http://www.fangda.com
This Semi-annual Report is available at: the Secretary Office of the Board of the Company.
(6) Abbreviations and Codes of the Stock and the Stock Exchange Listed
A Stock: Fangda A 000055 Shenzhen Stock Exchange
B Stock: Fangda B 200055 Shenzhen Stock Exchange5
2. Financial Highlights (in RMB yuan)
(1) Major accounting indices
Note: The total of non-recurring incomes was of RMB20,432,739.71. The details are as followings:
Gain of RMB-165,872.62 from disposal of non-current assets;
Government subsidy into current income account of RMB590,000.00;
Gain from debt reorganizing of RMB135,817.79;
Gain of RMB16,614,079.31 from disposal of transactional financial assets, investment gains of
transactional financial assets, financial instruments, and disposable financial assets;
Gain from external entrusted loans of RMB308,534.09;
Gains from fluctuation of fair values of investment properties of RMB2,385,370.72;
Net value of other non-business gains/losses of RMB572,495.41.
Less the non-recurring gain/loss attributable to the minority shareholders’ equity of RMB7,684.99.
(2) Impact on the net profit and net asset due to adjustment under IAS (In
RMB Yuan)
Ended this report
term
Ended previous
year
Increase/decrease over the
end of last year (%)
Gross Assets 1,541,790,414.20 1,395,570,931.42 10.48%
Owners’ equity to shareholders of
the listed company 585,205,548.34 559,715,901.95 4.55%
Net asset per share 1.37 1.31 4.58%
Report term (Jan-
Jun)
Same period last
year
Increase/decrease over the
same period of last year
(%)
Operation profit 25,017,739.00 21,553,202.82 16.07%
Total profit 26,150,179.58 20,011,754.48 30.67%
Net profit attributable to the
shareholders of the listed company 30,076,634.28 20,798,839.29 44.61%
Net profit after deducting of nonrecurring
gain/loss attributable to
the shareholders of the listed
company
9,643,894.57 -4,723,303.91 ----
Basic gains per share 0.07 0.05 40.00%
Diluted gains per share 0.07 0.05 40.00%
Net earnings / asset 5.14% 3.72% 1.42%
Cash flow generated by business
operation, net 45,029,475.86 -39,696,847.73 ----
Net Cash flow per share generated
by business operation 0.11 -0.09 ----
Domestic Accounting
Standard
International Accounting
Standard
Net profit attributable to the
shareholders of the listed company 30,076,634.28 30,076,634.28
Owners’ equity to shareholders of the
listed company 585,205,548.34 589,968,946.58
Statement about the diversity Differences of owners’ equity were the part of interest of
previous years being capitalized.6
(3) Net income/asset ratio and earnings per share
Items
Net return on equity (%) Earnings per share
(yuan/share)
On full
amortizing
basis
weighted
average
Basic gains
per share
Diluted
gains per
share
Net profit attributable to the shareholders of
the listed company 5.14% 5.25% 0.0705 0.0705
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of
the listed company 1.65% 1.68% 0.0226 0.02267
II. Change in Capital Share and Major Shareholders
(I) Change of Capital Share
1. Causation of the change
In the report term, part of the shares with selling restriction satisfied the conditions to be released.
These shares were totaled to 44,248,248 shares and could be traded in the stock exchange since
April 17, 2009.
2. Approval upon the change
The share relocation plan was examined and passed at the shareholders’ meeting held in 2006.
3. Change in total capital shares and shareholding structure
Change of shareholding status
Before the change Changed (+,-) After the change
Amount Proportion
Issuing
of new
shares
Bonus
shares
Transferred
from
reserves
Others Sub-total Amount Proportion
I. Shares with conditional
subscription 44,313,321 10.38% -44,248,248-44,248,248 65,073 0.01%
1. State-owned shares
2. State-owned legal
person shares
3. Other domestic shares 44,248,248 10.37% -44,248,248-44,248,248 0 0
Incl. Non-government
domestic legal person
shares
44,248,248 10.37% -44,248,248-44,248,248 0 0
Domestic natural
person shares
4. Share held by foreign
investors
Incl. Shares held by
foreign legal persons
Foreign natural person
shares
5. Executive shares 65,073 0.01% 0 0 65,073 0.01%
II. Shares with
unconditional subscription 382,473,038 89.62% 44,248,248 44,248,248 426,721,286 99.99%
1. Common shares in
RMB 173,157,655 40.57% 44,248,248 44,248,248 217,405,903 50.94%
2. Foreign shares in
domestic market 209,315,383 49.05% 0 0 209,315,383 49.05%
3. Foreign shares in
overseas market
4. Others
III. Total of capital shares 426,786,359 100.00% 0 0 426,786,359 100.00%8
4. Shareholding positions at end of the report term (Ended June 30, 2009, in
shares)
Top 10 holders of unconditional shares
5. No influences of the capital share changing on the financial indices of the latest
year and latest term, such as basic earnings per share and diluted earnings per
share, and net asset per share attributable to common shareholders of the
Company.
6. None of the controlling shareholder or substantial dominator of the
Company has changed during the report term.
Total of shareholders At the end of report term, the number of shareholders was 75355
(including 52617 A share holders and 22738 B share holders)
Top 10 Shareholders
Name of the shareholder Properties of
shareholder
Share
proportion % Total shares Conditional shares Pledged or frozen
Shenzhen Banglin
Technologies Development
Co., Ltd.
Legal person
shares 10.08% 43,000,014 0 0
Shenzhen Shilihe
Investment Co., Ltd.
Legal person
shares 6.58% 28,066,645 0 0
Onforce International Ltd. Foreign shares 4.45% 19,000,000 0 0
Gu Feng Foreign shares 0.54% 2,307,603 0 N/A
Chen Jinbiao Foreign shares 0.50% 2,118,930 0 N/A
Cao Yifan Foreign shares 0.48% 2,060,870 0 N/A
Wang Beishen Foreign shares 0.20% 834,080 0 N/A
Li Yijun Foreign shares 0.19% 817,379 0 N/A
Zhang Yongjie Foreign shares 0.19% 808,080 0 N/A
Li Jiehua A-share holder 0.19% 792,655 0 N/A
Name of the shareholder Unconditional shares Category of shares
Shenzhen Banglin
Technologies Development
Co., Ltd.
43,000,014
A shares
Shenzhen Shilihe Investment
Co., Ltd. 28,066,645 A shares
Onforce International Ltd. 19,000,000 B shares
Gu Feng 2,307,603 B shares
Chen Jinbiao 2,118,930 B shares
Cao Yifan 2,060,870 B shares
Wang Beishen 834,080 B shares
Li Yijun 817,379 B shares
Zhang Yongjie 808,080 B shares
Li Jiehua 792,655 A shares
Notes to relationship or
“action in concert” among
the top ten shareholders.
Among the top 10 shareholders, Banglin and Onforce are parties with action in
concert. Banglin and Shilihe are assolicated. As for the other holders of current shares,
the Company has not been informed any situation of related parties or action in
concert parties.9
III. Particulars about the Directors, Supervisors and Senior
Executives
1. Changes in Shares Held by Directors, Supervisors and Senior Executives
No change of shareholding position occurred with the directors, supervisors and executives of the
Company in the report term.
The Company has not implemented any share equity motivation scheme, thus none of the directors,
supervisors or executives is holding share options or granted shares with restriction conditions.
2. No change occurred to the directors, supervisors and senior executives in the
current term.
3. The Annual General Meeting 2008 was held in the report term.10
IV. Report of the Board
1. Financial position of the Company:
In RMB
Major causes of the above movements:
(1) The Company realized a growth of revenue even under the influence of global financial crisis.
(2) Sales expenses increased by 6.16% over the same period of last year, which was caused by
increasing of business expenses.
(3) Administrative expenses increased by 11.12% over the same period of last year, which was
caused by increasing of wages and auditing and consulting expenses.
(4) Financial expenses decreased by 27.20% from the same period of last year, which was caused
by decreasing of loan interests and increasing of bank savings interest.
(5) Net cash flow from business operation has increased significantly over the same period of last
year, which was caused by prepayment from glass curtain wall project of UNIVERSIADE 2011,
and the increasing of payments for goods return.
(6) Operation profit increased by 16.07% over the same period of last year, which was caused by
increasing of gross profit ratio from 15.50% up to 19.03%.
(7) Cash and cash equivalents have increased significantly over the same period of last year, which
was caused by major increase of net cash flow from business operation, the last input of RMB50
million from Shenyang Hunnan New Area State-owned Asset Administration Co., Ltd., and
increasing of borrowings.
Items Jan-Jun 2009 Jan-Jun 2008 Movement %
Turnover 369,945,313.89 365,642,311.79 1.18%
Sales expense 10,902,148.67 10,269,354.93 6.16%
Administrative expense 31,629,232.39 28,464,370.60 11.12%
Financial expenses 9,764,547.03 13,413,249.21 -27.20%
Operation profit 25,017,739.00 21,553,202.82 16.07%
Net profit attributable to the shareholders of the listed
company 30,076,634.28 20,798,839.29 44.61%
Cash flow generated by business operation, net 45,029,475.86 -39,696,847.73 ----
Net increasing of cash and cash equivalents 61,512,827.88 -53,966,912.12 ----
Items Jun 30, 2009 December 31, 2008 Movement %
Gross Assets 1,541,790,414.20 1,395,570,931.42 10.48%
Owners’ equity to shareholders of the listed company 585,205,548.34 559,715,901.95 4.55%11
2. Business Overview:
The Company’s business scope is composed by: development, design, production, installation,
technical consulting & training, sales and after-sales service of new building materials, composite
materials, metal products, metal structure, environmental protection equipment and materials,
security equipment, metallurgic equipment, optical, mechanical and electronic integration products,
macromolecule materials and products, fine chemical products, machinery equipment, photoelectric
materials and equipment, photo-electric equipment, electronic display equipment,
audio/video equipment, traffic facilities, metro platform screen doors, various ventilation
equipment and products, plunger equipment, centralized air-conditioning equipment and spares and
parts, semiconductor materials and devices, integrated circuit, illumination products and equipment,
solar energy products, screen door system for metro, etc. Operation of property management,
leasing, and management of parking lots.
The high-tech products of the Company’s new-type construction materials are the major source of
business turnover and net profit of the Company. Products account for over 10% of the Company’s
major business turnover or major business profit are: glass curtain wall, metro screen doors, multilayer
aluminum board, single layer profiled aluminum board, and profiled aluminum materials.
Through industrial structure adjustment, the Company has formed its three major businesses, i.e.
new type construction materials, electro-mechanic, and semi-conductor lighting. The distribution of
turnover and profit over industries, products, and territories are as the following (RMB0’000)
3. Business Analysis
In the first half of year, global economy was still low under the influence of global financial crisis,
and is still impacting the domestic economy. The business environment was still not turning around.
In the report term, the Company seized the opportunities brought by national policies on promoting
the energy saving and environmental friendly industry, kept pursuing an independent and
innovative development path, realized good business performance.
In the report term, the Company has made turnover of RMB369.95 million, which was an increase
On industry or
product Turnover Operation
cost
Gross
profit
ratio (%)
Increase/decrease of
turnover over the
same period of last
year (%)
Increase/decrease of
operation cost over
the same period of last
year (%)
Increase/decrease of
gross profit ratio over
the same period of last
year (%)
Sales of products 11,473.55 8,715.06 24.04% 3.13% -9.23% 10.34%
Construction and
installations 24,358.45 21,018.56 13.71% 2.03% 0.45% 1.35%
Distribution on products
Glass curtain wall 27,019.75 22,449.73 16.91% 18.16% 10.29% 5.92%
Complex aluminum
boards and single
profiled plates
6,249.16 4,492.25 28.11% -6.45% -16.39% 8.55%
Metro station screen
door 1,207.33 1,021.57 15.39% -47.48% -48.00% 0.84%
Regions Turnover
Increase/decrease of turnover over
the last year (%)
Domestic 32,323.25 -1.45%
Overseas 4,671.29 24.06%
Total 36,994.53 1.18%12
of 1.18% over the same period of last year; net profit of RMB30.08 million, an increase of 44.61%
over the same period of last year; and operational cash flow of RMB45.03 million. As of the end of
report term, the Company has reserving orders amounted to RMB737.37 million.
1) Energy saving and environmental friendly was overcoming the declining and realized a
growth
In the report term, the Company was facing unfavorable economic environment and keep pursuing
its strategy target to enhance energy saving and environmental friendly business. As the result of
enhancing competitive advantages and marketing force, the Company was holding sufficient orders,
and was in full accelerating situation in production of environmental friendly products. For the first
half of 2009, the Company’s main revenue comes from glass curtain wall and aluminum plate,
which were RMB270.20 million and RMB62.49 million respectively. The profitability kept
expanding. The Company is now working on expanding its production to realize the strategic
targets of becoming one of the leading manufacturer in energy saving and environmental industry.
In the report term, the Company won the bidding competitions of the Main Stadium of
UNIVERSIADE 2011 in Shenzhen, Crown Hotel in Nanchang, Neighborhood Center in Tianjin,
Jingzhouwan Custom Building in Jingzhou Liaoning, Technical Development Building in Xiangfan
Hubei, Fengjinghuating in Guangzhou, Zhujiang Xincheng G4-2 in Guangzhou, Executive
Building in Xi’an, Nanrui Inspection Center in Jiangsu, Meydan project phase I in Dubai, and
Airport project in United Arabic Emirates.
In the report term, Shenzhen Fangda Decoration Co., Ltd. – one of the fully-owned subsidiaries of
the Company was awarded “Top 100 PM Project Management Enterprises” by China Management
Science Institution, and China Enterprise Management Innovation Evaluation Center. Xiamen
Haifu Center glass curtain wall project was awarded “Egret Award for Best Decoration Project of
Xiamen, 2009”.
2) Metro screen door projects were in rush period
In the report term, the contracts of screen door systems with Shenzhen Metro Line 1 Extension,
Sheyang Metro Line 1, and Nanjing Metro Line 1 Southern Extension have been fully launched.
Among them, the screen door systems used in Shenzhen Metro Line 1 Extension and Nanjing
Metro Line 1 are the patents fully owned by the Company. As of the end of report term, the
reserved orders have accumulated to RMB323.07 million.
As of the end of 2008, the municipal rail transportation of the country is totaled to 780 Km, and it is
expected to reach up to 3000 Km in 2020. Recently the national government is working on a
national policy to eliminate the limitation on using of homemade equipment. This will bring a new
opportunity for the development of rail transportation industry.
In the report term, the screen door projects contributed revenue of RMB12.07 million to the
Company.
3) New market trend for semi-conductor lighting product lines
In the report term, Shenzhen Fangda Guoke Electro-Optical Tech Co., Ltd. – one of the subsidiaries
of the Company, has accomplished the lighting reengineering projects in Guangzhou Metro Line 2
Modiesha Station and Tianjin Metro Line 1 Tucheng Station. All of the LED tubes in the two
stations are made by Fangda Guoke. This is the first using of LED lighting system in metro stations
around the world.
After successful installation of LED lighting system in Guangzhou and Tianjin, the operation
company of Beijing Metro said at “Technical Meeting on Using of LED Lighting System in Metro
Stations of Beijing” that LED lighting will be used in newly constructed metro lines, meanwhile,
LED lighting will be used to replace the old lighting in existing stations gradually. The mass
utilization of LED lighting system in metro stations will promote the utilization in civil areas. This
will open a greater space for the Company’s development.
In the report term, Shenzhen Fangda Guoke Electro-Optical Tech Co., Ltd. and Shenzhen Woke
Semi-conductor Lighting Co., Ltd. were awarded national high-tech enterprises.
Solar energy electro-optical architect is stepping into a brand new history13
The conflict between rising demand and supply of energy is becoming more and more severe.
Traditional energy supply such as coal and petrochemical energy brought severe environmental
problem. Solar energy is clean and everlasting, no doubt it is the ultimate solution for the problem.
China is one of the largest producer and consumer of glass curtain wall in the world. Though over
90% of the products used in the country are not energy-saving products with 2-3 times of unit
energy consuming comparing with advanced countries. Promotion of solar energy curtain wall is
very important in the country. Along with the expanding of silicon plate production in the country,
their prices were going down significantly. Using of solar energy curtain wall products in
construction is completely feasible and expecting a great future.
To promote the using of solar energy system in the country, the Ministry of Finance and Ministry of
Civil Construction announced the “Operational opinions on promoting solar energy system in
constructions” and “National subsidy on using of solar energy in constructions” in March 2009.
Solar energy was regarded as an essential part of energy saving approach in constructions, and
government subsidies will be put on this too. According to the research, if on current standard of
subsidy, the cost of solar energy system will be lowered by 50%. This will greatly promote the
development of this area.
Solar energy system developed by the Company was first used with Shenzhen Fangda Building,
which is also the first in the country. Along with the support of national policies, the independently
developed technology of the Company will see a bright future.
4. Investment in the report term
1) Application of the proceeds raised through share placing
The Company raised no funds through public offering in the report term. The fund raised
previously has been utilized completely in year 2000.
2) Utilization of fund from channel other than share placing
Shenyang Fangda Semi-conductor Lighting Co., Ltd. – the joint venture of the Company and
Shenyang Hunan New Area State-owned Asset Operation Co., Ltd. is under construction.
RMB17.49 million has already been inputted.
5. Calculation and measuring of major assets, liabilities, income, and expenses on
fair value basis
The Company calculates and measures the transactional financial assets, investment properties and
disposable financial assets on fair value basis.
Transactional financial assets are the fluctuating gains from future contract of aluminum hold by
Fangda New Material Co., Ltd. – one of the Company’s subsidiaries, the fair value is determined by
the closing rate at the end of report term.
Investment properties were calculated on the results provided by professional appraisal institutes.
The Company adopts the evaluation pattern to determine fair value according to the responding
letter from China Securities Regulatory Commission Accounting Division titled “Accounting
inquiry – measuring of disposable financial asset fair value” [2008]62, basing on the closing rates
of *ST Biology and ST Magnetic Card at the end of report term, using the “Notification about
regulations regarding estimations and share of net value of the Enterprise Accounting Standard in
securities investment” ( 证监会计字[2007]21 号), and “Risk control in securities investment”
([2006]37 号) on the “Determining of fair value of shares issued privately and with fixed freezing
periods”.
6. Business profitability prediction for the report year
The Company made no profitability prediction in the previous periodic reports regarding the
performance of the report term.14
V. Significant Events
1. Company Administration
Up to present, the Company has already established essential rules according to the relative laws
and regulations, including the Articles of Association, Shareholders’ Meeting Criteria, Board
Meeting Criteria, Supervisory Committee Meeting Criteria, Information Disclosure Criteria, and
Investor Reception and Promoting Criteria. Within the Board of Directors, the Company
established the special committees including Strategy Committee and Auditing Committee. Up to
present, all of the aforesaid criteria and regulations have been properly and effectively practiced.
The overall administrative structure is basically complying with the requirements of China
Securities Regulatory Commission, and it will be further improved constantly along with the
Company’s development.
2. Execution of profit distribution and capitalizing of common reserves in the
report term
No profit distribution or capitalizing of common reserves was implemented in the report term.
The Company conducted no share equity promotion scheme in the report term.
No cash dividend plan made in the report term.
3. The Company has not involved in any material lawsuit or arbitration in the
report period.
4. Investment in the report term, including holding of shares of other listed
companies, commercial banks, securities companies, insurance companies, trust
companies, future companies, and companies which is planning to place shares
publicly.
In RMB
5. The Company trade no other listed company’s shares in the report.
6. Acquisition / selling of asset, intake, or merger event occurred during the
report term.
(1) The Company acquired no assets in the report term.
(2) No disposal of assets in the report term.
7. No significant related transactions occurred during the report term.
Stock Code Stock ID Initial investment Share portion Book value at the
end of term
Gain/loss of the
report term
Change of owners’
equity in the report
term
000425 Xugong Tech 3,943,444.84 -1,484,800.00
000518 *ST Biology 854,089.54 0.01% 3,839,356.55 12,670,634.47 -2,986,313.09
600800 ST Magnetic
Card 4,850,000 0.11% 1,384,125.20 -115,874.80
Total 5,704,089.54 ---- 5,223,481.75 16,614,079.31 -4,586,987.8915
8. Particulars about material contracts and their fulfilling
(1) The Company has never been involved in such events as keeping as custodian, contracted or
leased any other company’s assets and vice versa in the report period or extended from the previous
years.
(2) Particulars about material contracts and their fulfilling
1) Hangzhou City Xinyu Building No. 2, 3, 5, 6 energy saving glass curtain wall project was
obtained at the end of December 2007 with contract value of RMB163.70 million. It was started
in May 2008 and planned to be completed at the end of November 2009. As of the report term, a
revenue of RMB81,603,910.94 has been received.
2) The overall contract of Shenzhen Metro Line No.1 PSD system is valued RMB79.8586
million, and adopted the door machine and controlling unit developed by the Company. At
present installation in Baishizhou Station, Gaoxin Station, and Shenda Station has accomplished.
This project will be finished in December 2011. As of the report term, a revenue of
RMB11,435,172.39 has been received.
3) The contract for the PSD system of Line No.2 of Shenzhen Metro was RMB169.256 million.
The sample machine has passed one-million-time reliability test. Installation was scheduled for
October 2009, and is expected to complete in March 2011.
4) Contract with Nanjing Metro was amounted to RMB59.52 million. Installation has been
started in Ningdao Station and Tianying Station. This project was planned to finish in March
2010, up to the end of report term, a revenue of RMB4,816,837.61 has been received.
5) Glass curtain wall supplying contract with Australian Dollar 100 million was started in August
2007, and a revenue of RMB28.58 million has been received.
6) The contract for Main Stadium of UNIVERSIADE 2011 project was amounted to
RMB95.3973 million and started in June 2009. It is planned to be finished at the end of
December 2009.
(3) Issues regarding entrusting other parties to manage cash capital in the report term:
In the report term, the Company retrieved the trustee scheme of Shenguotou/Weilan Department
subscribed by Shenzhen Fangda Decoration Co., Ltd. through Shenzhen International Trust &
Investment Co., Ltd. amounted to RMB5 million with actual return rate of 6.17%.
9. Special statement and independent opinions of the independent directors
regarding adoption of capital by related parties and providing of external
guarantee.
According to the document issued by CSRC and State-owned Asset Commission (Zheng-Jian-
Fa[2003]56), under the principle of practical and realistic, the we performed cautious inspection on
the adoption of capital by related parties and providing of external guarantee, we deem:
(1) The Company has established a healthy financial system to prevent adoption of capital by the
holding shareholder and its related parties and unfair related transactions. The Company hasn’t paid
any wages, welfares, insurances, or commercial expenses on behalf of the holding shareholder or
its associated parties. The Company conducted no operational capital transaction with any of the
holding shareholder or its associated parties.
(2) The Company has been controlling the external guarantees strictly. In the report term, the
Company hasn’t provided any guarantee to the holding shareholder or other related parties, any
noincorporated
parties or individuals. None of the holding shareholder or its related parties has forced
the Company to provide guarantee to any other parties. All of the guarantees were provided to the
Company’s subsidiaries following statutory examination procedures. As of June 30, 2009,
guarantees provided by the Company were as the followings:
In RMB0’00016
10. In the report term, no commitment issues made by the Company or
shareholders with over 5% of shares which have significant influence on the
Company’s business performance or financial status. No additional commitment
on shares with selling restrictions by shareholders with over 5% of the
Company’s shares.
11. In the report term, none of the shareholders with over 30% of shares
proposed or implemented share increasing action.
12. No compensations on the gains from commitment of related parties about the
Company’s share relocating scheme or major capital relocation scheme in the
report term.
13. The Financial Report carried in this Interim Report was not audited by CPAs.
The Company didn’t replaced the CPAs in the report term.
14. In the report term, none of the directors, supervisors, executives, shareholders,
substantial dominators, buyer of the Company was investigated by relative
departments, executed by legal & discipline departments, delivered to legal
departments, appeared for crime, investigated or punished by China Securities
Regulatory Commission, restricted to security market, criticized publicly,
regarded as improper person, punished by other executive departments, or
publicly condemned by the Stock Exchange.
15. Reception of investigators in the report term
External Guarantee (Exclude controlled subsidiaries)
Guarantee provided to Date of contract Amount
guaranteed
Type of
guarantee TermCompleted or
not
Related
party or not
Total occurred in the report term 0.00
Total of balance of guarantees at the end of report
term (A) 0.00
Guarantee provided to controlled subsidiaries
Total of guarantee provided to subsidiaries in the
report term 11,065.74
Total of guarantee provided to subsidiaries at the end
of report term (B) 33,076.56
Total of guarantee (including provided to subsidiaries)
Total of guarantees (A+B) 33,076.56
Portion of total guarantee over net asset 56.52％
Including:
Guarantees provided to the shareholders, substantial
controllers and the related parties (C) 0.00
Guarantee provided directly or indirectly to objects
with over 70% of liability on asset ratio (D) 0.00
Amount of guarantee over 50% of the net asset (E) 3,816.28
Total of the above 3 * (C+D+E) 3,816.28
Time/date Place Way Visitors Main content involved an17
The Company follows “Shenzhen Stock Exchange PLC Fair Information Disclosure Guide”,
“Information Disclosure Administrative Rules” and “Reception and Promotion Rules” and related
laws and regulations. At reception of investigations and visiting and inquiries of the investors, no
selective disclosure, private disclosure, advance disclosure to particular object, or leaking of
undisclosed major information happened. The fairness of information disclosure was guaranteed.
d material provided
Feb 25,
2009
The
Company
Onsite
investigation
Guangdong
Development
Securities
Business operation and
future development.18
16. The followings are the regular and extraordinary announcements and reports
published in the report term:
No. Content Date of
publishing
Press media Page No.
2009-01Announcement February 2,
2009
China Securities Journal B01
Securities Times C16
Shanghai Securities Daily A17
Hong Kong Commercial Daily (English) A9
2009-02Announcement February 11,
2009
China Securities Journal C05
Securities Times C8
Shanghai Securities Daily C8
Hong Kong Commercial Daily (English)
A6
2009-03Announcement March 3, 2009 China Securities Journal A12
Securities Times D2
Shanghai Securities Daily C16
Hong Kong Commercial Daily (English) A8
2009-04Resolutions of the 6th Meeting of
the 5th Term of Board
March 28,
2009
China Securities Journal C191
Securities Times B17
Shanghai Securities Daily 176
Hong Kong Commercial Daily (English) A9
2009-05Resolutions of the 4th meeting of
the 5th term of Supervisory
Committee
March 28,
2009
China Securities Journal C191
Securities Times B17
Shanghai Securities Daily 176
Hong Kong Commercial Daily (English) A9
2009-06Annual Report 2008 Summary March 28,
2009
China Securities Journal C191 、
C192
Securities Times B17、B18
Shanghai Securities Daily 176、175
Hong Kong Commercial Daily (English) A8 A9
2009-07Public Notice on Convening of
the Shareholders’ Annual
Meeting 2008
March 28,
2009
China Securities Journal C191
Securities Times B17
Shanghai Securities Daily 176
Hong Kong Commercial Daily (English) A9
2009-08Plan of A-shares Private Issuing
2009
March 28,
2009
China Securities Journal C191
Securities Times B17
Shanghai Securities Daily 176
Hong Kong Commercial Daily (English) A9
2009-09Announcement on Releasing of
Conditional Shares
April 15, 2009 China Securities Journal D048
Securities Times D8
Shanghai Securities Daily C819
All of the above announcements are available in the website assigned by China Securities
Regulatory Commission: www.cninfo.com.cn
Hong Kong Commercial Daily (English) B8
2009-10The Resolutions of
Shareholders’ Annual Meeting
2008
April 18, 2009 China Securities Journal C005
Securities Times B41
Shanghai Securities Daily 97
Hong Kong Commercial Daily (English) A19
2009-11The Resolutions of the 7th
Meeting of the 5th Term of
Board
April 18, 2009 China Securities Journal C005
Securities Times B41
Shanghai Securities Daily 97
Hong Kong Commercial Daily (English) A19
2009-12The 1st Quarterly Report 2009 April 18, 2009 China Securities Journal C005
Securities Times B41
Shanghai Securities Daily 97
Hong Kong Commercial Daily (English) A1920
VI. Financial Report
(Not Audited)
1. Financial Statements (Not audited, enclosed)
2. Notes to Financial Statements (enclosed)
VII. Document Ready for Inquiring
1. Semi-annual Report carried with personal signature and seal of the Chairman
of the Board;
2. Accounting Statements with signatures and seals of the legal representative and
financial principal and chief of accounting department;
3. Originals of all documents and manuscripts of Public Notices of the Company
disclosed in public in the newspapers as designated by China Securities
Regulatory Commission.
4. The Article of Association of the Company adopted by the latest Shareholders’
General Meeting.
Legal representative: Xiong Jianming
The Board of Directors of
China Fangda Group Co., Ltd.
July 15, 200921
Balance Sheet
Prepared by: China Fangda Group Co., Ltd. June 30th 2009 in RMB yuan
Items
Balance at the end of term Balance at the beginning of year
Consolidated Parent
company Consolidated Parent
company
Current asset:
Monetary capital 361,953,098.30 56,166,825.46 211,638,447.88 3,702,206.23
Settlement provision
Outgoing call loan
Transactional financial assets 1,130,025.80
Notes receivable 1,860,000.00 17,539,171.74 10,903,790.29 7,273,375.72
Account receivable 273,275,711.94 15,418,597.64 309,967,793.35 20,133,345.21
Prepayment 24,418,223.57 11,295,504.53 183,333.33
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance
contracts receivable
Interest receivable 1,019,063.66 291,765.10
Dividend receivable
Other account receivable 40,071,576.64 175,097,939.99 41,902,271.80 200,081,536.53
Repurchasing of financial assets
Inventories 191,598,341.89 146,209,954.16
Non-current asset due in 1 year
Other current asset 5,000,000.00
Total of current asset 895,326,041.80 264,514,299.93 736,917,762.01 231,373,797.02
Non-current assets
Loans and payment on other’s
behalf disbursed
Disposable financial asset 5,223,481.75 1,384,125.20 14,068,500.00
Expired investment in possess
Long-term receivable
Long-term share equity
investment 3,006,859.69 333,023,850.60 4,506,859.69 333,423,850.60
Investment real estate 264,119,771.04 255,798,638.04 261,734,400.32 253,549,300.32
Fixed assets 257,234,866.74 48,472,038.82 273,756,378.47 49,360,083.88
Construction in process 10,174,141.64 9,429,233.19
Engineering goods
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 75,050,438.08 10,532,073.37 60,834,577.77 10,786,917.08
R&D expense 4,191,874.93 7,783,177.73
Goodwill 8,197,817.29 8,197,817.29
Long-term amortizable expenses
Differed income tax asset 19,265,121.24 18,342,224.95
Other non-current asset
Total of non-current assets 646,464,372.40 649,210,726.03 658,653,169.41 647,120,151.88
Total of assets 1,541,790,414.20 913,725,025.961,395,570,931.42 878,493,948.90
Current liabilities
Short-term loans 465,928,013.00 160,000,000.00 229,382,471.49
Loan from Central Bank
Deposit received and hold for
others
Call loan received22
Trade off financial liabilities
Notes payable 43,992,582.58 40,015,000.00 58,705,049.15
Account payable 158,480,006.16 7,583,028.42 133,711,152.93 8,732,970.63
Prepayment received 115,116,226.05 693,045.60 101,965,594.16 739,302.70
Selling of repurchased financial
assets
Fees and commissions receivable
Employees’ wage payable 4,214,479.42 4,674,596.67
Tax payable 23,315,121.56 1,726,038.94 31,245,712.21 2,922,025.31
Interest payable 338,465.00 242,000.00 590,697.62 374,841.37
Dividend payable
Other account payable 22,404,786.59 164,708,848.89 20,928,588.30 151,776,238.60
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Non-current liability due in 1
yearOther current liability 1,248,932.01 1,016,379.24 1,016,379.24 1,016,379.24
Total of current liability 835,038,612.37 375,984,341.09 582,220,241.77 165,561,757.85
Non-current liabilities
Long-term borrowings 179,000,000.00 179,000,000.00
Bond payable
Long-term payable
Special payable
Expected liabilities
Differed income tax liability 1,209,749.21 2,100,492.25
Other non-recurring liabilities 5,765,694.50 4,930,000.00
Total of non-current liabilities 6,975,443.71 186,030,492.25 179,000,000.00
Total of liability 842,014,056.08 375,984,341.09 768,250,734.02 344,561,757.85
Owners’ equity (or shareholders’
equity)
Capital paid in (or share capital) 426,786,359.00 426,786,359.00 426,786,359.00 426,786,359.00
Capital reserves 56,508,320.62 34,251,138.01 61,095,308.51 33,267,012.81
Less: Shares in stock
Surplus reserves 6,388,697.44 6,388,697.44 6,388,697.44 6,388,697.44
Common risk provision
Retained profit 95,522,171.28 70,314,490.42 65,445,537.00 67,490,121.80
Different of foreign currency
translation
Total of owner’s equity belong to
the parent company 585,205,548.34 537,740,684.87 559,715,901.95 533,932,191.05
Minor shareholders’ equity 114,570,809.78 67,604,295.45
Total of owners’ equity 699,776,358.12 537,740,684.87 627,320,197.40 533,932,191.05
Total of liabilities and owners’
equity 1,541,790,414.20 913,725,025.961,395,570,931.42 878,493,948.9023
Income Statement
Prepared by: China Fangda Group Co., Ltd. Jan-Jun 2009 RMB Yuan
Items
Amount of the Current Term Amount of the Previous Term
Consolidated Parent
company Consolidated Parent
company
I. Total revenue 369,945,313.89 17,409,790.44365,642,311.79 29,904,582.93
Incl. Business income 369,945,313.89 17,409,790.44365,642,311.79 29,904,582.93
Interest income
Insurance fee earned
Fee and commission
received
II. Total business cost 365,365,584.81 17,270,468.30371,181,728.93 29,237,725.99
Incl. Business cost 299,542,925.11 4,470,349.48308,955,651.23 18,011,387.15
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy
reserves provided
Insurance policy dividend
paid
Reinsurance expenses
Business tax and surcharge 9,767,330.95 664,694.71 8,891,628.63 641,905.77
Sales expense 10,902,148.67 591,616.45 10,269,354.93 354,301.01
Administrative expense 31,629,232.39 8,874,149.42 28,464,370.60 7,479,887.52
Financial expenses 9,764,547.03 2,560,492.78 13,413,249.21 2,438,580.17
Asset impairment loss 3,759,400.66 109,165.46 1,187,474.33 311,664.37
Plus: Gains from change of fair
value (“-“ for loss) 3,515,396.52 2,249,337.72 -3,694,977.89 -3,431,277.89
Investment gain (“-“ for loss) 16,922,613.40 30,787,597.85 27,945.21
Incl. Investment gains
from affiliates
Gains from currency exchange
(“-“ for loss)
III. Operational profit (“-“ for loss) 25,017,739.00 2,388,659.86 21,553,202.82 -2,736,475.74
Plus: Non business income 1,416,575.88 437,535.27 1,066,899.57 105,186.00
Less: Non-business expenses 284,135.30 1,826.51 2,608,347.91 1,161,183.69
Incl. Loss from disposal of
non-current assets
IV. Gross profit (“-“ for loss) 26,150,179.58 2,824,368.62 20,011,754.48 -3,792,473.43
Less: Income tax expenses -892,969.03 251,072.78
V. Net profit (“-“ for net loss) 27,043,148.61 2,824,368.62 19,760,681.70 -3,792,473.43
Net profit attributable to the
owners of parent company 30,076,634.28 2,824,368.62 20,798,839.29 -3,792,473.43
Minor shareholders’ equity -3,033,485.67 -1,038,157.59
VI. Earnings per share:
(I) Basic earnings per share 0.07 0.05
(II) Diluted earnings per share 0.07 0.0524
Cash Flow Statement
Prepared by: China Fangda Group Co., Ltd. Jan-Jun 2009 RMB Yuan
Items Amount of the Current Term Amount of the Previous Term
Consolidated Parent company Consolidated Parent company
I. Net cash flow from business operation
Cash received from sales of products and
providing of services 406,547,823.93 26,234,711.17322,301,429.86 24,525,132.28
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
Net increase of trade financial asset
disposal
Cash received as interest, processing fee,
and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Tax returned 186,253.97 1,241,714.99
Other cash received from business
operation 36,241,231.56 1,272,565.74 13,899,151.62 1,402,712.60
Sub-total of cash inflow from business
activities 442,975,309.46 27,507,276.91337,442,296.47 25,927,844.88
Cash paid for purchasing of merchandise
and services 315,924,312.50 6,323,133.66302,888,885.59 17,848,523.44
Net increase of client trade and advance
Net increase of savings in central bank
and brother company
Cash paid for original contract claim
Cash paid for interest, processing fee and
commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 26,817,645.66 2,538,136.69 26,435,044.30 3,039,821.96
Taxes paid 16,837,906.20 2,875,912.65 13,036,670.45 1,867,614.29
Other cash paid for business activities 38,365,969.24 3,787,931.62 34,778,543.86 4,848,562.85
Sub-total of cash outflow from business
activities 397,945,833.60 15,525,114.62377,139,144.20 27,604,522.54
Cash flow generated by business
operation, net 45,029,475.86 11,982,162.29 -39,696,847.73 -1,676,677.66
II. Cash flow generated by investing
Cash received from investment retrieving 11,678,754.96 9,734,929.90
Cash received as investment gains 17,712,589.83 30,787,972.60 27,945.21
Net cash retrieved from disposal of fixed
assets, intangible assets, and other long-term
assets
1,220.00 1,220.00 2,399,360.00
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received 184,000.00
Sub-total of cash inflow due to
investment activities 29,576,564.79 1,220.00 42,922,262.50 27,945.21
Cash paid for construction of fixed assets,
intangible assets and other long-term assets 2,756,502.32 170,098.50 8,079,462.61 206,950.00
Cash paid as investment 4,916,722.80 6,916,385.00 401,440.00
Net increase of loan against pledge
Net cash received from subsidiaries and
other operational units 6,262,846.90
Other cash paid for investment activities25
Sub-total of cash outflow due to
investment activities 7,673,225.12 170,098.50 21,258,694.51 608,390.00
Net cash flow generated by
investment 21,903,339.67 -168,878.50 21,663,567.99 -580,444.79
III. Cash flow generated by financing
Cash received as investment 50,000,000.00
Incl. Cash received as investment from
minor shareholders
Cash received as loans 508,535,659.25 275,765,541.22 45,979,546.67 19,991,857.53
Cash received from bond placing
Other financing-related cash received 3,000,000.00
Subtotal of cash inflow from financing
activities 558,535,659.25 275,765,541.22 48,979,546.67 19,991,857.53
Cash to repay debts 457,198,471.49 229,000,000.00 71,424,107.50 10,000,000.00
Cash paid as dividend, profit, or interests 10,843,491.21 6,130,606.65 13,234,208.60 7,941,282.75
Incl. Dividend and profit paid by
subsidiaries to minor shareholders
Other cash paid for financing activities 95,901,563.87 40,015,000.00
Subtotal of cash outflow due to
financing activities 563,943,526.57 275,145,606.65 84,658,316.10 17,941,282.75
Net cash flow generated by financing -5,407,867.32 619,934.57 -35,678,769.43 2,050,574.78
IV. Influence of exchange rate alternation on
cash and cash equivalents -12,120.33 -795.83 -254,862.95 -54,204.99
V. Net increase of cash and cash equivalents 61,512,827.88 12,432,422.53 -53,966,912.12 -260,752.66
Plus: Balance of cash and cash equivalents
at the beginning of term 112,333,106.38 3,452,206.23171,607,741.24 2,608,321.55
VI. Balance of cash and cash equivalents at the
end of term 173,845,934.26 15,884,628.76 117,640,829.12 2,347,568.8926
Consolidated Statement of Change in Owners’ Equity
Prepared by: China Fangda Group Co., Ltd. Interim 2009 RMB Yuan
Items
Amount of the Current Term
Owners’ Equity Attributable to the Parent Company Minor
shareholders’
equity
Total of owners’
Capital paid in equity
(or share capital) Capital reserves
Less:
Shares in
stock
Surplus
reserves
Common
risk
provision
Retained profit Others
I. Balance at the end of
last year 426,786,359.00 61,095,308.51 6,388,697.44 65,445,537.00 67,604,295.45 627,320,197.40
Plus: Change of
accounting policy
Correcting of previous
errors
Others
II. Balance at the
beginning of current year 426,786,359.00 61,095,308.51 6,388,697.44 65,445,537.00 67,604,295.45
627,320,197.40
III. Changed in the current
year (“-“ for decrease) -4,586,987.89 30,076,634.28 46,966,514.33 72,456,160.72
(I) Net profit 30,076,634.28 -3,033,485.67 27,043,148.61
(II) Gains/losses
accounted into owners’
equity directly
-4,586,987.89 -4,586,987.89
1. Change in fair
value of sellable financial
assets, net
-4,586,987.89 -4,586,987.89
2. Influence of
change in other owners’
equity of invested
enterprises on equity basis
3. Influence of
income tax related to
owners’ equity items27
4. Others
Total of (I) and (II) -4,586,987.89 30,076,634.28 -3,033,485.67 22,456,160.72
(III) Investment or
decreasing of capital by
owners
50,000,000.00 50,000,000.00
1. Capital inputted by
owners 50,000,000.00 50,000,000.00
2. Amount of shares
paid and accounted as
owners’ equity
3. Others
(IV) Profit allotment
1. Providing of
surplus reserves
2. Common risk
provision
3. Allotment to the
owners (or shareholders)
4. Others
(V) Internal transferring
of owners’ equity
1. Capitalizing of
capital reserves (or to
capital shares)
2. Capitalizing of
surplus reserves (or to
capital shares)
3. Making up losses
by surplus reserves
4. Others
IV. Balance at the end of
this term 426,786,359.00 56,508,320.62 6,388,697.44 95,522,171.28 114,570,809.78 699,776,358.1228
Items
Amount of Last Year
Owners’ Equity Attributable to the Parent Company Minor
shareholders’
equity
Total of owners’
Capital paid in (or equity
share capital)
Capital
reserves
Less:
Shares in
stock
Surplus
reserves
Common
risk
provision
Retained
profit Others
I. Balance at the end of last year 387,987,600.00145,358,857.54 6,388,697.44 42,184,655.09 71,642,668.86
653,562,478.93
Plus: Change of accounting
policy
Correcting of previous errors
Others
II. Balance at the beginning of
current year 387,987,600.00145,358,857.54 6,388,697.44 42,184,655.09 71,642,668.86 653,562,478.93
III. Changed in the current year
(“-“ for decrease) 38,798,759.00 -84,263,549.03 23,260,881.91 -4,038,373.41 -26,242,281.53
(I) Net profit 23,260,881.91 -4,038,373.41 19,222,508.50
(II) Gains/losses accounted into
owners’ equity directly -45,464,790.03 -45,464,790.03
1. Change in fair value of
sellable financial assets, net -47,281,531.81 -47,281,531.81
2. Influence of change in
other owners’ equity of invested
enterprises on equity basis
707,926.15 707,926.15
3. Influence of income tax
related to owners’ equity items
4. Others 1,108,815.63 1,108,815.63
Total of (I) and (II) -45,464,790.03 23,260,881.91 -4,038,373.41 -26,242,281.53
(III) Investment or decreasing
of capital by owners
1. Capital inputted by
owners
2. Amount of shares paid and
accounted as owners’ equity
3. Others29
(IV) Profit allotment
1. Providing of surplus
reserves
2. Common risk provision
3. Allotment to the owners
(or shareholders)
4. Others
(V) Internal transferring of
owners’ equity 38,798,759.00 -38,798,759.00
1. Capitalizing of capital
reserves (or to capital shares) 38,798,759.00 -38,798,759.00
2. Capitalizing of surplus
reserves (or to capital shares)
3. Making up losses by
surplus reserves
4. Others
IV. Balance at the end of this term 426,786,359.00 61,095,308.51 6,388,697.44 65,445,537.00 67,604,295.45
627,320,197.4030
Change in Owners’ Equity (Parent Co.)
Prepared by: China Fangda Group Co., Ltd. Interim 2009 RMB Yuan
Items
Amount of the Current Term
Capital paid in (or share
capital)
Capital
reserves
Less: Shares in
stock
Surplus
reserves
Retained
profit
Total of owners’
equity
I. Balance at the end of last year 426,786,359.00 33,267,012.81 0.00 6,388,697.44 67,490,121.80
533,932,191.05
Plus: Change of accounting policy 0.00
Correcting of previous errors 0.00
Others 0.00
II. Balance at the beginning of current year 426,786,359.00 33,267,012.81 0.00 6,388,697.44 67,490,121.80
533,932,191.05
III. Changed in the current year (“-“ for decrease) 0.00 984,125.20 0.00 0.00 2,824,368.62 3,808,493.82
(I) Net profit 2,824,368.62 2,824,368.62
(II) Gains/losses accounted into owners’ equity directly 984,125.20 984,125.20
1. Change in fair value of sellable financial assets, net 984,125.20 984,125.20
2. Influence of change in other owners’ equity of
invested enterprises on equity basis 0.00
3. Influence of income tax related to owners’ equity
items 0.00
4. Others 0.00
Total of (I) and (II) 0.00 984,125.20 0.00 0.00 2,824,368.62 3,808,493.82
(III) Investment or decreasing of capital by owners 0.00
1. Capital inputted by owners 0.00
2. Amount of shares paid and accounted as owners’
equity 0.00
3. Others 0.00
(IV) Profit allotment 0.00
1. Providing of surplus reserves 0.00
2.Allotment to the owners (or shareholders 0.0031
3. Others 0.00
(V) Internal transferring of owners’ equity 0.00
1. Capitalizing of capital reserves (or to capital shares) 0.00 0.00 0.00 0.00 0.00 0.00
2. Capitalizing of surplus reserves (or to capital
shares) 0.00
3. Making up losses by surplus reserves 0.00
4. Others 0.00
IV. Balance at the end of this term 426,786,359.00 34,251,138.01 0.00 6,388,697.44 70,314,490.42
537,740,684.8732
Items
Amount of Last Year
Capital paid in (or share
capital)
Capital
reserves
Less: Shares in
stock
Surplus
reserves Retained profit Total of owners’
equity
I. Balance at the end of last year 387,987,600.00 70,956,956.18 6,388,697.44 89,520,489.16 554,853,742.78
Plus: Change of accounting policy 0.00
Correcting of previous errors 0.00
Others
II. Balance at the beginning of current year 387,987,600.00 70,956,956.18 0.00 6,388,697.44 89,520,489.16
554,853,742.78
III. Changed in the current year (“-“ for decrease) 38,798,759.00 -37,689,943.37 0.00 0.00-22,030,367.36
-20,921,551.73
(I) Net profit -22,030,367.36 -22,030,367.36
(II) Gains/losses accounted into owners’ equity directly 0.00 1,108,815.63 0.00 0.00 0.00 1,108,815.63
1. Change in fair value of sellable financial assets,
net 0.00 0.00 0.00 0.00 0.00 0.00
2. Influence of change in other owners’ equity of
invested enterprises on equity basis 0.00 0.00 0.00 0.00 0.00 0.00
3. Influence of income tax related to owners’ equity
items 0.00 0.00 0.00 0.00 0.00 0.00
4. Others 0.00 1,108,815.63 0.00 0.00 0.00 1,108,815.63
Total of (I) and (II) 0.00 1,108,815.63 0.00 0.00-22,030,367.36 -20,921,551.73
(III) Investment or decreasing of capital by owners 0.00 0.00 0.00 0.00 0.00 0.00
1. Capital inputted by owners 0.00 0.00 0.00 0.00 0.00 0.00
2. Amount of shares paid and accounted as owners’
equity 0.00 0.00 0.00 0.00 0.00 0.00
3. Others 0.00 0.00 0.00 0.00 0.00 0.00
(IV) Profit allotment 0.00 0.00 0.00 0.00 0.00 0.00
1. Providing of surplus reserves 0.00 0.00 0.00 0.00 0.00 0.00
2.Allotment to the owners (or shareholders 0.00 0.00 0.00 0.00 0.00 0.00
3. Others 0.00 0.00 0.00 0.00 0.00 0.00
(V) Internal transferring of owners’ equity 38,798,759.00 -38,798,759.00 0.00 0.00 0.00 0.00
1. Capitalizing of capital reserves (or to capital
shares) 38,798,759.00 -38,798,759.00 0.00 0.00 0.00 0.0033
2. Capitalizing of surplus reserves (or to capital
shares) 0.00 0.00 0.00 0.00 0.00 0.00
3. Making up losses by surplus reserves 0.00 0.00 0.00 0.00 0.00 0.00
4. Others 0.00 0.00 0.00 0.00 0.00 0.00
IV. Balance at the end of this term 426,786,359.00 33,267,012.81 0.00 6,388,697.44 67,490,121.80
533,932,191.0534
China Fangda Group Co., Ltd.
Notes to the Financial Statements
Ended June 30, 2009
(In RMB Yuan except for otherwise stated)
I. Company Profiles
China Fangda Group Co., Ltd. (the Company) was approved by the Government of
Shenzhen with Document 深府办函（1995）194 号, and was founded, on the basis of
Shenzhen Fangda Construction Material Co., Ltd., by way of share issuing in October
1995.
The 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. On June 12, 1997, as approved by Shenzhen Bureau of Commerce with
Document 深招商复[1997]0192 号, the Company was re-registered to a sino-foreign
joint venture. Registration routines were completed with Shenzhen Commerce and
Industry Administration on November 12, 1997. In October 1999, the Company started
to use the current name.
The Company’s certificate of business was numbered 440301501124785, and the
registered capital is RMB387,987,600.00.
As approved by Shenzhen Bureau of Trade and Industry with Document 深贸工
资复[2009]0132 号issued on January 15, 2009, the Company’s registered capital was
increased from RMB387,987,600.00 up to RMB426,786,359.00. The increased part of
capital was funded by capitalizing of capital reserves in accordance with the
supplementary Articles of Association. After that, the Company’s capital will increase
to RMB426,786,359.00. The re-registration routines are under process.
Legal representative: Mr. Xiong Jianming
Our business include new-type building materials, composite materials, metal
wares, metal frames, environmental equipment and apparatus, fire fighting equipment,
optical-mechanical-electrical integrated products, polymer materials and their products,
fine chemical products, mechanical equipment, optical materials and devices,
electronic displayer, audio-visual device, transport facilities (exclude restricted items35
and produces under export certification, and their design, developing, installation,
construction, technical consulting, and training.
The Company has its branches in Beijing, Shanghai, Guangzhou, and Wuhan.
II. Basis for the preparation of financial statements
The Company follows the Enterprise Accounting Standard ( 财会[2006]3 号)
released on February 15, 2006 and its supplementary regulations since January 1, 2007.
Preparing of the financial statements was on the assumption of the Company’s
perpetual operation, according to the trades and events practically happened,
complying with the Enterprise Accounting Standard issued by the Department of
Finance and relative application guidance. Accounting estimations and assumptions
are used in preparing the financial statements with compliance to the Enterprise
Accounting Standard, which will make influences on the assets, liabilities or
contingent liabilities at the financial statement date, as well as the income and expenses
in the report term.
III. Statement of compliance to the Enterprise Accounting Standard
The Company acknowledges that the financial statements prepared herein are
complying with the Enterprise Accounting Standard, and reflecting the financial
situations, business results, and cash flow situations frankly and completely.
IV. Main Accounting Policies and Estimations
(I) Fiscal Year
The fiscal year of the Group is the solar calendar year, that is from January 1 to
December 31.
(II) Standard currency for bookkeeping
The Company takes RMB as the standard currency for bookkeeping.
(III)Booking bases
Recognition, measuring, and presentation of accounting information are on
accrual basis, and booking is on debit and credit method.
(IV)Measuring property
Historical costs are generally adopted in measuring of accounting factors. For
those which adopts restored costs, realizable net value, current value, or fair value in
accounting, explanations will be given particularly.36
(V)Recognition of cash equivalents
Cash equivalent in cash flow statement refers to the investments with short term,
strong liquidity and small risk of value fluctuation that are held by the Company and
easily converted into cash with known amount.
(VI)Trade of foreign currencies
Trades of the Company made in foreign currencies are translated into RMB
basing on the middle rate announced by China Foreign Currency Trading Center
which is authorized by People’s Bank of China at the date when the trade is
conducted. At the balance sheet date, foreign currency items are translated on the
middle rate announced by China Foreign Currency Trading Center, the translation
differences, except for those constructed or produced and can be capitalized directly
into relative capital costs, are accounted into current gain/loss account. Nonmonetary
items accounted in foreign currency and on historical costs, are still use the
middle rate announced by China Foreign Currency Trading Center, and the amount
in standard currency will not be changed.
(VII)Financial assets
1. Categorizing, recognition, and measuring of financial assets
At initial recognition, financial assets are categorized as: financial assets
measured at fair value with variations accounted into current income account, account
receivable, and disposable financial assets. Categorizing of financial assets are
decided by the intention and capability of holding of the financial assets by the
Company or its subsidiaries.
(1) Financial assets measured at fair value with variations accounted into current
income account
Including transactional financial assets and financial assets directly measured by
fair value and with variations accounted into current gain/loss account, which are
initially recognized at the fair value when obtained, the related transaction expenses
are accounted into current income account when occurred. Cash dividend and bond
interests included in the prices paid which are announced but not distributed are
recognized as receivable items individually.
Interests or cash dividends received during the period of holding the particular
financial assets are recognized as investment gains when received. At the balance
sheet day, the fair values of such financial assets are accounted into current income
account. At disposal of such financial assets, the differences between the fair value
and initial booked value are recognized as investment gains, and the fair value
fluctuation gain/loss will be adjusted accordingly.
(2) Account receivable
Accounts receivable (including account receivable and other account receivable)
are initially accounted according to the contract amount or agreement amount.
Accounts receivable that are unrecoverable due to bankruptcy of the debtor (still
unrecoverable through insolvency procedures); death of the debtor, and no
inheritance or heir of liabilities available; or failure of clearing overdue liabilities by
the debtor, will be accounted as bad debt losses through legal verification procedures.
At the balance sheet date, except for those receivables between the units within37
the consolidation range, or receivables with strong evidence showing that no
impairment has occurred, the Company performs impairment test separately on
individual financial assets with major amounts. Those tested with impairment shall
be provided upon bad debt provisions on the difference of current value of future
cash flow lower than the book value. Those financial assets tested separately with no
impairment found shall be tested again along with the group of financial assets with no major amount
and similar risk characteristics, and impairment will be accounted at certain ratio upon the balance of
the group at balance sheet date, bad debt provisions will be provided accordingly.
Bad debt provisions are provided at the following ratios on the portfolios
categorized on sales pattern and customer credit risks:
Bad debt provisions are provided at the following ratios on the portfolios
categorized on risk characteristics:
When the Company is raising finance from financial institutions such as banks
against receivable credits by means of transferring, pledging, or discounting,
according to the related contracts, when the debtor failed to repay the debt, if the
Company was responsible to repay the amount, then the particular receivable credit
will be treated as pledged loan; if the Company was not responsible to repay the
amount, then the receivable credit will be treated as transferred credit, and
transferring gain/loss shall be recognized.
When the Company retrieves the receivables, the differences between the
amount retrieved and book value of the receivable shall be accounted into current
gain/loss account.
(3) Sellable financial asset
Sellable financial asset refers to those sellable non-derivate financial assets
recognized initially, namely the Company does not elicit financial assets accounted
by fair value with variations accounted into current income account, investment hold
Categories Risk
portfolios
Age
within 1
year
1-2
yrs 2-3 yrs Over 3
yrs
Receivables tested individually
without impairment
In normal
returning
period
3% 10% 30% 50%
Receivables with no major
individual amount
In normal
returning
period
3% 10% 30% 50%
Categories Risk portfolios
Age
within 1
year
1-2
yrs
2-3
yrs
Over 3
yrs
Receivables tested individually
without impairment
In normal
returning
period
3% 10% 30% 50%
Receivables with no major
individual amount
In normal
returning
period
3% 10% 30% 50%38
to expiration, loans, and receivables.
Sellable financial assets are initialised at the sum of fair value and related
transaction costs when obtained. Due bond interests or cash dividend included in the
payment that are announced but not distributed are recognized as receivables
individually. Interests or cash dividends received during the period of holding the
sellable financial assets are recognized as investment gains when received. At the
balance sheet date, sellable financial assets are measured on fair values, and the
variations of fair values are accounted into “Capital reserves – other capital
reserves”.
As for sellable financial assets, if the fair value decreased significantly, and it
was predicted not temporary, then impairment loss will be accounted at the
difference between the balance of initial cost less retrieved principle less amortized
amount and current fair value. The accumulative losses formed by decreasing of fair
value originally accounted into the owner’s equity are transferred out along with
providing of impairment losses, and accounted into “asset impairment loss”.
At disposal of sellable financial assets, the difference between the amount
received and the book value of the financial asset will be accounted into “investment
gains”, meanwhile, the amount of accumulative change of fair value originally
accounted into owners’ equity corresponding to the disposed part will be transferred
over to “investment gains”.
2. Deciding of financial instrument fair value
When there is an active market for the financial instrument, the value quoted at
the active market is adopted by the Company as the fair value. When there isn’t any
active market, fair value will be recognized by evaluation techniques. Evaluation
techniques include referencing to the prices adopted in latest voluntary transaction
between parties with full understanding of the situation, referencing to the current fair
value of other substantially similar financial instruments, discounted cash flow
analysis. At using of evaluation techniques, market indices will be used to the greatest
extent, while particular indices of the Company and the subsidiaries to the least.
(VIII)Inventories
Inventories are those under the Company’s possession for the purpose of selling,
in the process of production, or materials and goods used in production process or
providing of services, including materials purchased, raw materials, low-value
consumables, OEM materials, products in process, semi-finished goods, stock
merchandises (finished goods), consigned goods, and construction in process.
At obtaining of the inventories, they are priced at actual costs; transmitting of
constructions is on individual measuring basis, other inventories are priced on
weighted average basis at using or delivering.
The Company verifies inventories at certain time of the year, inventories other
than construction-in-process are verified on perpetual inventory basis.
Low-value consumables are amortized on on-off amortization basis at using.39
On the balance sheet date, inventories are accounted depending on which is
lower between the cost and the net realisable value. At overall verification of
inventories at the end of year, when the net realisable value is lower than the cost,
provisions for impairment of inventories shall be drawn. Provisions for impairment
of inventories shall be accounted according to the difference between the cost of
individual inventory items and the net realisable value.
Including: for inventories such as finished products or materials which will be
directly sold, in the normal operation, the realizable net value will be the balance of
estimated selling price less sales expenses and relative taxations; For those
inventories need further processing, in the normal operation, the realizable net value
will be the balance of estimated sales price less costs to make it finished, less
estimated sales expenses, and less relative taxation. At the balance sheet day,
inventories with contract prices will be determined for realizable value separately
from those without contract prices.
(IX)Long-term share equity investment
1. Categorizing, recognition, and measuring of long-term equity
investment
Long-term share equity investment of the Company includes the investment in
subsidiaries, affiliates, and other long-term equities.
(1) Investment in subsidiaries
Investment in subsidiaries are priced at initial costs. For long-term equity
investment formed through merger, please refer to Note IV-24.
Following up measurement are on cost basis and adjusted on equity basis at
preparing of consolidated financial statements. Cash dividends or profit distributions
announced by the invested companies are recognized as investment gains of the
current term. Investment gains are limited to the share of accumulative net profit
since the investment of the Company been made. Profit or cash dividend exceeding
the limit are treated as retrieving of initial investment costs.
(2) Investment in affiliates
Long-term equity investments, which are significantly influencing the invested
companies, are accounted on equity basis. Significant influence refers to the power
to participate in financial operation or decision-making process, but without absolute
control individually or jointly with other parties. When the investing enterprise has
major influence on the invested enterprise, the invested enterprise is regarded as
affiliate of the investing enterprise.
When the initial investment cost is greater than the share of fair value of the
recognizable net assets of the invested company, the initial investment cost of the
long-term equity investment will not be adjusted. When the initial investment cost is
lower than the share of fair value of the recognizable net assets of the invested
company, the balance shall be accounted into current gain/loss account, and the cost
of the long-term equity investment shall be adjusted accordingly.
After obtaining of the long-term equity investment, the investment gain/loss is
recognized according to the share of the net gain/loss realized by the invested
company, and the book value of the long-term equity investment shall be adjusted
accordingly. The share of profit distributions or cash dividends announced by the40
invested company is used to reduce the book value of the long-term equity
investment.
(3) Other long-term equity investment
If the Company has no joint control or major influence on the invested company,
and there isn’t any quotation in an active market, the fair value can’t be reliably
measured, then the long-term equity investment is measured at initial investment
cost, and following-up measurement is on cost basis.
2. Impairment of long-term equity investment
At the balance sheet day, if evidence showing that impairment occurred on the
long-term equity investment, the recoverable amount shall be decided by the higher
one of net amount of fair value less disposal fees and the current value of predicted
future cash flow. When the recoverable amount of the long-term equity investment is
lower than the book value, the book value will be reduced down to the recoverable
amount, the reduced amount is recognized as asset impairment loss and counted into
current gain/loss account, asset impairment provision shall be provided accordingly.
Once the long-term equity investment impairment loss is recognized, it will not be
written back in following fiscal terms.
(X)Investment real estate
Investment real estates are buildings rented out.
Investment real estate is measured according to the initial cost. Cost of real
estate purchased from outside includes purchasing price, tax, and other expenses
directly related to the real estate; cost of real estate constructed by the Company
itself is constructed by the essential costs to make the real estate usable.
Accounting of investment real estates of the Company is on fair value basis
when the following conditions are satisfied:
(1) There is an active real estate market where the investment real estate is
located;
(2) Market price and other related information of similar real estates may be
acquired from the market and used to make reasonable estimation on the fair value of
the investment real estate.
At the balance sheet date, the Company uses fair value to measure the
investment properties, no depreciation or amortizing is made on the investment
properties, book value is adjusted on the base of fair value of the property at balance
sheet date, and the differences between the fair value and the original book value are
counted into current gain/loss account.
At disposal of investment properties, or retrieve from the property permanently
and no further financial benefit is expected to obtain from the property, recognition
of the investment property will be terminated. Balance of income from disposal,
transferring, discarding, or clearing of investment properties less the book value and
related taxes is counted into current gain/loss account.
(XI)Fixed assets
Fixed assets is defined as the tangible assets which are held for the purpose of
producing goods, providing services, lease or for operation & management, and have
more than one year of service life.41
Initial measurement shall be conducted on fixed assets according to the actual
cost when obtain them and also considering the expected costs for disposal. The cost
of fixed assets purchased from outside includes the price paid and tariffs, and other
expenses directly related to the fixed asset before it reaches the usable status. Cost of
fixed assets constructed by the Company itself is constructed by essential costs
before it reaches the usable status. Fixed assets inputted by the investors are booked
as stipulated by the contracts or agreements, but if the contract or agreement price is
not fairly acceptable, it will be booked at fair value.
Other than fixed assets which have already been provided depreciations in full
but still in use, the Company provides depreciations upon all of the fixed assets.
Straight age average basis is adopted in depreciation.
According to the property and usage of the fixed assets, the Company decides
the service life and predicted net retained value. At end of each fiscal year,
verification will be made on the useful life, predicted retained value, and
depreciation basis, adjustment will be made if difference occurred to the original
estimations.
Categories, useful life, predicted net retained value, and annual depreciation
rate of fixed assets are as the followings:
At the balance sheet day, fixed assets are accounted at the lower one of book
value and retrievable value. If the retrievable value is lower than the book value, the
book value will be deducted to the retrievable value, and the deducted amount will be
recorded as asset impairment loss into current income account, and impairment
provision shall be provided accordingly. Once the impairment loss was recognized, it
will not be written back in coming fiscal terms.
When fixed asset is disposed, or made no financial benefit by using or disposing
it, recognition is terminated. Income from disposal, transferring, discarding of fixed
assets, less its book value and taxes, is accounted into current income account.
(XII)Construction in process
Construction in process conducted by the Company itself, its actual cost
consists of essential costs of carrying on the construction till it reaches usable status.
Category of assets Expected useful life (yrs) Predicted retained
value rate
Annual depreciation
ratio
Houses & buildings 35-45 10% 2-2.57%
Equipment & machinery 10 10% 9%
Transportation facilities 5 10% 18%
Electronics and other
devices 5 10% 18%42
Cost of fixed asset which has already become usable but not settled yet, is
recognized according to estimated value, and depreciations share be provided. Upon
completion of settlement, the original estimated value shall be adjusted according to
the actual cost, but the depreciations made previously shall not be adjusted.
At the balance sheet day, fixed assets which are suspended for a long time and
not possibly resumed in coming 3 years, or strong evidence of impairment exists, are
accounted at the lower one of book value and retrievable value. If the retrievable
value is lower than the book value, the book value will be deducted to the retrievable
value, and the deducted amount will be recorded as asset impairment loss into
current income account, and impairment provision shall be provided accordingly.
Once the impairment loss was recognized, it will not be written back in coming
fiscal terms.
(XIII)Intangible assets and development expenses
Intangible assets are those recognizable non-monetary assets without physical
shape under the Company’s possess or control, including land using rights, patent,
industry property, special technologies, and softwares.
Intangible assets are initially measured by their costs. Intangible assets
purchased are booked at the actual cost to purchase and relative expenses. Intangible
assets inputted by investors are booked at the contract or agreement price, but if the
contract or agreement price is not fairly acceptable, it will be booked at fair value.
Expenses of internal R&D projects in research stages are recorded into current
income account when occurred; expenses of internal R&D projects in development
stages, are recognized as intangible assets when all of the following conditions are
satisfied, or otherwise recorded to current income account:
(1) Developing of the intangible asset is about to be completed, and it is
technically possible to be put into use or sold;
(2) Has the intention to use or sell it;
(3) The intangible asset is proved being able to make financial benefit,
including there is a market for the products using the intangible asset or the
intangible asset itself. If the intangible asset is used internally, its usage should be
proved;
(4) There are sufficient technologies, financial resources, or other resources that
support the developing, using or selling of the intangible asset;
(5) Expenses attributable to the intangible asset in development stages can be
reliably measured. Development expenses that have been accounted into income
accounts shall not be recognized as asset in successive periods.
Expenses occurred in development stage that have been capitalized shall be
demonstrated as “development expenses” in balance sheet, and transferred to
“intangible assets” since the date when the project become usable.
The Company analyses and determine the usable life when intangible assets are
obtained, and are classified into intangible assets with limited useful life, and
uncertain useful life.
Intangible assets with limited useful life are amortized straightly to the useful
life, the useful life and amortizing basis are reconsidered at the end of each year,43
when there is difference with the original estimation, adjustment shall be made.
Intangible assets with limited useful life are amortized as followings:
Intangible assets without certain useful life are not amortized. They will be
reconsidered in each accounting period, if strong evidence showing that the useful life
became limited, then it will be estimated, and amortized on straight basis.
On the balance sheet date, the Company measures intangible assets according
to the lower of book value and retrievable value, intangible asset impairment
provisions shall be provided at the difference of retrievable value lower than the
book value, and the corresponding impairment loss shall be recorded to current
income account. Once intangible asset impairment losses are recognized, they will
not be written back in successive fiscal periods.
(XIV)Goodwill
Goodwill is the difference of merger costs of enterprises under same control
over the share of recognizable net asset or fair value at the date of purchasing of the
invested company.
Goodwill related to subsidiaries are presented individually in consolidated
financial statements, goodwill related to affiliates are included in the book value of
long-term equity investment.
Goodwill presented individually in financial statements are tested for
impairment at leased once at end of each year. At impairment test, the book value of
goodwill shall be shared by the benefited asset group according to the collaboration
effects between the merger businesses.
(XV)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. Other borrowing expenses are
recognized as expenses according to the occurred amount, and accounted into
gain/loss of current term. Assets satisfying the conditions of capitalization are
referring to the fixed assets, investment properties, and inventories that need a longterm
construction or production process to reach the usable or sellable status.
Borrowing expenses start to be capitalized when all of the followings are
satisfied:
(1) Asset expense has already occurred. Asset expenses include cash payment,
Categories Basis of amortization Useful life
Land using right Average age 50 yrs
Patent Average age 10 yrs
Industrial property and
special tech Average age 10 yrs
Other intangible assets Average age 10 yrs or beneficial age44
non-cash asset transferring, or undertaking of debt with interest done for purchasing
or producing of assets.
(2) The borrowing expense has already occurred.
(3) Purchasing or production activity, which is necessary for the asset to reach
the useful status, has already started.
In the period of capitalization, the capitalized amount of each fiscal period, if it
is a special borrowing for construction or production of asset satisfying the
capitalizing conditions, is the interest expenses actually occurred less the interest
income from the unused part of borrowings or from temporary investment. If it used
a common borrowing for construction or production of asset satisfying the
capitalizing conditions, the capitalized interest amount will be decided by the
weighted average of accumulative asset expenses over the capital expenses of the
special borrowing multiply the capitalizing ratio of common borrowing. Capitalizing
amount of the interests shall not more than the actual amount of interest actually
occurred to the current relative borrowing.
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. Borrowing expenses occurred in the suspension period are recognized
as expenses and recorded to current income account, until the construction or
production is resumed. If the suspension is an essential process to make the asset
usable or sellable, capitalizing of borrowing expenses shall be carried forward.
When the asset satisfying the capitalizing conditions has reached its usable or
sellable status, capitalizing of borrowing expenses shall be terminated.
(XVI)Finacial liabilities
All of the financial liabilities of the Company are other financial liabilities,
which refers to those other than the financial liabilities measured in fair value and
variations accounted into current income account, such as payables for purchasing of
goods. Other financial liabilities are initially recognized at the sum of fair value and
relative transaction expenses, and successive measurement is at amortized costs.
(XVII)Employees’ remunerations
Employees’ remunerations are remunerations in all forms and other expenses
paid to the employees, in return, the services of employees. Mainly include wages,
bonus, allowances, welfares, social insurance, housing fund, trade union fees, and
education expenses.
1. Remunerations basing on shares
Share payment of the Company is divided into payment by equity and payment
by cash.
Payment by equity is measured by fair value of the equity paid to the
employees. If the equity can be exercised instantly, it will be accounted into relative
cost at the fair value of the equity at the day of giving. If the equity is only
exercisable upon satisfying of performance or service period, basing on the best
estimation on the amount of equity, according to the fair value at the day of giving,
record the service into related cost or capital reserves at each balance sheet date in
the period. No adjustment will be done on recognized cost or expenses and the45
owners’ equity after the exercise date.
2. Employees’ remuneration in other forms
In the fiscal period which employees provided services, the Company recognize
the remunerations payable as liabilities, and are accounted into costs, service costs,
capital costs and current income account depending on the beneficiary object of the
service provided.
(XVIII)Expected liabilities
When responsibilities occurred in connection to contingent issues, and all of the
following conditions are satisfied, they are recognized as expected 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.
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. When the periodic value of currency is
with major influence, then the best estimation will be determined at the discount of
future cash outflow. The book value of expected liability is revised at balance sheet
day, and adjustment will be made to reflect current best estimation. Increasing of
book value over time will be recognized as interest expenses.
（XIX)Differed income
Differed income is the government subsidy which will be accounted into
current income account in future terms.
Calculation of differed income related to government subsidies is available with
Note IV (XXI)
（XX)Turnover
1. Sales of goods
When all of the following conditions are satisfied, the sales of goods are
recognized as sales income according to the contract amount received or receivable
from the buyer:
(1) Main risks and rewards attached to the ownership of the goods have been
transferred to the buyer;
(2) No succeeding power of administration or effective control is reserved
which are usually attached to ownership;
(3) Amount received can be reliably measured;
(4) Related financial benefit may inflow to the Company;
(5) Relative costs, occurred or will occur, can be reliably measured.
When collection of contract payment is by differed way, and practically with
financing characters, sales income shall be recognized at the fair value of the46
receivable contract amount.
2. Providing of services
Principle of labor service income is: labor service has been delivered, related
financial benefit has been received, and income and costs can be measured reliably.
When a contract engaged with other company is including sales of goods and
providing of labor services, if the goods and services can be measured separately,
they will be treated separately. When they are not able to be distinguished, or not
able to be measured separately, all of them will be treated as sales of goods.
3. Demise of asset using right
Income is recognized when the financial benefit in connection with the
demising of asset using right was received and the amount can be reliably measured.
Interest income is recognized according to the applicable period of time and
interest rate. Amount of application fee is recognized according to the period and
calculation decided by the related contract.
4. Construction contracts
Metro screen door projects of the Company and Shenzhen Fangda Automatic
System Co., Ltd. (Fangda Automatic System), and glass curtain wall project of
Shenzhen Fangda Decoration Engineering Co., Ltd. (Fangda Decoration) are
individual construction contracts, they are accounted by the following means:
Income and expenses of the construction contracts are recognized on
percentage basis at balance sheet day when all of the following conditions are
satisfied: contract income can be reliably measured, relative financial benefit can
inflow to the Company; progress of the project and costs to complete the contract
can be reliably recognized; cost occurred to complete the contract can be clearly
distinguished and reliably measured, which enables comparing of actual cost with
predicted cost.
Contract costs are direct and indirect expenses occurred since the date when the
contract is engaged till the completion day.
Metro screen door projects under the Company and Fangda Automatic System
are decided for their progress by finished workload on predicted total workload of
the contract.
Curtain wall projects under Fangda Decoration are decided for their progress by
costs practically occurred over the predicted total cost of the Contract.
Construction contracts completed within a fiscal year are recognized for their
income and cost upon completion.
Construction contracts completed in current term are recognized for income
according to the actual total income of the contract less income recognized in
previous terms; meanwhile, the total costs of the contract less costs recognized in
previous terms are recognized as current contract costs. If the total contract cost is
predicted to be greater than the predicted total income, the predicted loss shall be
recognized as current cost instantly.
Parts of the curtain wall project under Fangda Decoration are outsourced, and
administrative fees are collected at agreed rate. For these construction contracts,
income will be recognized when ongoing payment for the project is received and47
corresponding costs are transferred.
(XXI)Government subsidy
Government subsidies are the monetary or non-monetary capital received from
the government by free, but not include capital inputted by the government as
investment of owners.
When a government subsidy is monetary capital, it is measured at the received
or receivable amount.
Government subsidies in connection with capital are recognized as differed
income, and amortized straight to its useful life, and accounted into current income
account.
Government subsidies in connection with gains, which are used to cover future
expenses or losses, are recognized as differed gains, and recorded to current income
account to the period when the expenses are recognized.
If a recognized government subsidy need to be returned, if there is relative
differed gains, the balance of differed gains will be setoff, the exceeded part shall be
recorded into current income account; if there is no relative differed gains, record to
current income account directly.
(XXII)Leases
If the leasing conditions are practically transferring all of the risks and rewards
attached to the leased property to the leaser, the leasing is regarded as financial
leasing. The others are operational leasing. All of the Company’s leasing items are
operational leasing items.
1. The Company is the lender
Rentals from operational leasing are recognized as current gains on straight
basis to the periods of leasing. Initial direct expenses are recorded to current income
account.
2. The Company is the leaser
Rentals in operational leasing are recorded to relative capital cost or current
income account on straight basis to the periods of leasing. Initial direct expenses are
recorded to current income account.
(XXIII)Income tax
Income taxes are accounted on liability basis in the balance sheet. When there is
difference between the book value and taxable basis of asset or liability, differed
income tax asset and differed income tax liability are recognized according to the
regulations.
At the balance sheet day, the current income tax liabilities (or assets) formed in
current term or previous term, are measured by the amount of income tax to be paid
(or refunded) according to the taxation law; differed income tax assets and liabilities
are measured at the applicable tax rate in the period when the asset is predicted to be
retrieved or the liability is predicted to be cleared.
Recognition of differed income tax asset is limited to the provisional difference
to be deducted, and deductible losses and taxable income amount. If the taxable48
income realized in the future period of transferring of provisional differences is not
sufficient, which made the financial benefit related to the provisional difference
unrealizable, no differed income tax asset is recognized.
Differed income tax liabilities generated by the taxable provisional difference
related to fluctuation of fair value of investment in subsidiaries and affiliates are
recognized, but those satisfying the recovering time of the taxable provisional
difference are not recognized;
At the balance sheet day, the book values of differed income tax assets are
revised. Those deductible provisional differences, which are neither enterprise merger, nor initial
recognition of assets or liabilities are recognized as income tax expenses or income into current
income account.
(XXIV)Merger of companies
1. Merger of enterprises under common control
Assets and liabilities obtained by the merging party are calculated at their book
value with the merged parties at the merger day. The differences between the book
value of net assets and the book value of consideration price (or the total of face
value of share issued) are adjusted to the share capital premium under the capital
reserves. If the share capital premium is not enough to neutralize the difference, it
will be adjusted to the retained gains.
2. Merger of enterprises under different control
When the enterprises participated in the merger are not under controlling of the
same party or group of parties, either before or after the merger, the merger is
regarded as merger of enterprises under different control. At merging of enterprises
under different control, the party which obtains power of control over other
participants is regarded as the buying party, and the other parties are regarded as the
bought parties.
For merger of enterprises under common control, the merger cost is the fair
value of capital paid, liability occurred or undertaken, or equity instrument issued
thereof, on the day of purchasing to obtain power of control over the bought party,
and those expenses directly related to the merger. For merger done through multiple
trades, the overall cost is the sum of cost of each single trade. If the merger contract
provided faith on future events that may influence the merger cost, and the event has
great possibility to happen, and its influence may be reliably measured, then it will
be accounted into merger cost.
(XXV)Preparation of Consolidated Financial Statements
Consolidation range is determined on the basis of control power for the consolidated financial
statements.
Consolidated financial statements are prepared according to “Enterprise
Accounting Standard No.33 – consolidated financial statements. Major internal
trades and transactions are neutralized when consolidated. Part of shareholders’49
equity not attributable to the Company are demonstrated individually as minority
shareholders’ equity under shareholders’ equity item in the consolidated financial
statement.
When the accounting policies and periods of the subsidiaries are not complying
with those of the Company’s, they shall be adjusted according to the Company’s
accounting policy and accounting period.
Subsidiaries added as merger of enterprises under different control, the
individual statement shall be adjusted basing on the recognizable net asset fair value
at the day of purchasing; subsidiaries added as merger of enterprise under common
control, it will be regarded as occurred at the beginning of current term, and their
assets, liabilities, and business performance, and cash flow shall be included in the
consolidated financial statements.
V. Significant change of accounting policies and accounting estimates, correcting
of previous accounting faults
(I) Change of accounting policies
No change of accounting policies occurred in the year.
(II) Change of accounting estimations
No change of accounting estimations occurred in the year.
(III) Correction of previous accounting faults
No correction of previous accounting faults occurred in the report term.
VI. Taxation
Main tax items and rates applicable to the Company and subsidiaries:
1. Operation tax and surtaxes
Note:
Tax items Tax basis Rate Note
Business tax
income from curtain wall and metro screen door
installation projects 3%
Property rental income 5%
VAT
Sales income of aluminium and new materials 17% Note (1)
Sales income of screen door materials 17%
Sales income of semi-conductor materials and
devices 17%
City maintenance
and construction
tax
VAT payable + business tax 7% or 1% Note (2)
Education surtax VAT payable + business tax 3%50
(1) According to document 深国税南减免[2004]0274 号issued by Shenzhen
Nanshan National Tax Bureau, and “Verification Notice” dated August 30, 2004,
Shenzhen Fangda Yide New Material Co., Ltd. (Fangda Yide) – one of the
subsidiaries of the Company was approved to enjoy half VAT on sales of new-type
wall materials.
(2) The Company and its subsidiaries located in Shenzhen (except for projects
located outside Shenzhen which are subject to city maintenance and construction tax
at 7% of business tax payable) pay 1% of the VAT and business tax as city
maintenance and construction tax. It is 7% of the same for subsidiaries located in
other territories.
2. Corporation income tax
Corporation income tax rates applicable to the Company and its subsidiaries:
Note:
(1) The People’s Congress passed “The Income Tax Law of PRC” (the new Tax
Law”) on March 16, 2007. The new Tax Law took effect on January 1, 2008.
Corporation income tax was reduced from 33% to 25%. High-tech enterprises
recognized by the national government are subject to 15% of corporation income tax.
According to document 国发[2007]39 号文issued by the national government, the
Company and the subsidiaries enjoys preferable taxation policies as the followings:
① Since January 1, 2008, enterprises originally enjoy low tax rates will apply
Name of companies Tax rate Note
The headquarter 20% Note (1)
Fangda Decoration 20% Note (1)
Fangda Automatic 20% Note (1), (2)
Fangda Yide Co. 20% Note (1)
Fangda Guoke 15% Note (1), (4)
Shenzhen Woke 15% Note (1), (3)
Fangda New Materials (Jiangxi) 25% Note (1), (5)
Fangda Aluminum 25% Note (1)
Shenyang Fangda 25% Note (1)
HK Junjia N/A51
legal tax rates gradually in five years. Among them, enterprises originally subject to
15% of income tax will apply 18% in 2008, 20% in 2009, 22% in 2010, 24% in 2011,
and 25% in 2012.
② Since January 1, 2008, enterprises originally subject to preferable tax
policies including “2 free 3 half” and “5 free 5 half”, will still apply the original
policies till expiration. But those didn’t enjoyed the policies will apply since 2008.
The income tax rate applicable to the Company was adjusted from 18% to 20%
since January 1, 2009.
(2) According to 深国税南减免[2004]0257 号issued by Shenzhen Nanshan
National Tax Bureau, Fangda Automatic enjoys “2 free 3 half” policy since the first
profitable year. It start to pay half income tax since 2008.
(3) According to document 深地税三函[2004]235 号issued by Shenzhen
Local Tax Bureau, Shenzhen Woke enjoys “2 free 3 half” policy since the first
profitable year. The preferable period started from year 2008. On December 16, 2008,
Shenzhen Woke was awarded “Certified High-tech Enterprises”, and will enjoy
15% of income tax rate in three years (including 2008).
(4) According to “Administrative Rules of Recognition of High and New
Technology Enterprises”, and “Income Tax Law of PRC”, they are entitled to enjoy
15% of Corporation Tax for three years (including 2008) since the qualifications
were awarded.
(5) As approved by Nanchang High-tech Zone Tax Bureau with document 洪
高国税发（2008）74 号, Fangda New Material enjoys “2 free 3 half” policy since
2008.
3. Property tax
Property tax rate applicable to the Company and subsidiaries is 1.2% basing on
70% of the original value of property in Shenzhen. Same for the properties of
subsidiaries outside Shenzhen for self use. Leasing property is subject to 12% of tax
on rental income.
4. Individual income tax
Individual income tax of the employees are paid by the Company on behalf.
VII. Merger of enterprises and consolidated financial statements
(I) Basic information of the Company and subsidiaries as of June 30, 2009
1. Subsidiaries acquired through merger of companies under common
control52
[Continues]
2. Other subsidiaries
[Continues]
Note: Above subsidiaries are directly or indirectly controlled by the Company,
including:
(1) Shenzhen Woke is the subsidiary directly controlled by Fangda Guoke.
(2) Fangda Guoke is the subsidiary directly controlled by Shenyang Fangda.
(II) Change of consolidation range in the report term
Name of the
subsidiaries
Organization
code Reg. Add.
Registered
capitalRM
B0’000
Business scope
Shenzhen Woke 72855858－4 Shenzhen 1,000.00
R&D, designing, production, after service of LED
products; installation of LED color displayer, city
and road lighting system.
Name of the subsidiaries
Share proportion %
Voting rights
Actual
investment
RMB0’000
Consolidated?
Direct Indirect
Shenzhen Woke 64.58% 64.58% 1,899.13 Yes
Name of the
subsidiaries
Organization
code Reg. Add.
Registered
capital
(RMB0’000)
Fangda Decoration 19244418-2 Shenzhen 10,000.00
Fangda Automatic 75425429-3 Shenzhen 5,000.00
Fangda Yide Co. 61929454-0 Shenzhen USD320.00
Fangda Guoke 72856199-4 Shenzhen 5,000.00
Fangda New
Material 74852611-7 Nanchang USD1,200.
00
Fangda
Aluminium 15830664-0 Nanchang 2,000.00
HK Junjia None HK HKD1.00
Shenyang Fangda 66254891-3 Shenyang 20,000.00
Name of the
subsidiaries
Share proportion %
Voting rights
Actual investment at
end of year
(RMB0’000)
Consolidated?
Direct Indirect
Fangda Decoration 100% 100% 10,000.00 Yes
Fangda Automatic 100% 100% 5,000.00 Yes
Fangda Yide Co. 100% 100% USD320.00 Yes
Fangda Guoke 64.58% 64.58% 10,500.00 Yes
Fangda New
Material 100% 100% USD1,200.00 Yes
Fangda Aluminium 100% 100% 2,000.00 Yes
HK Junjia 100% 100% HKD1.00 Yes
Shenyang Fangda 64.58% 64.58% 12,916.00 Yes53
No change.
(III) Minority shareholders of subsidiaries
Please see Note IX (I)-34.
VIII. Affiliates
IX. Notes to main items of the financial statements
(XXVI) Notes to the consolidated financial statements
(1) Monetary capital
Details of monetary capital:
Note: Balance of other monetary capital was RMB188,107,164.01, which were the
Name of the Companies Reg. Add. Business
property
Share
portion
Voting right
portion
Total of net
asset at end
of year
Total of
turnover
Current
year
Net profit
Nanchang Fangda Property
Co., Ltd. Nanchang
Property
developme
nt
30％ 30％ 50,022,865.6
4 - 22,865.64
Items
Balance of book value at end of term Balance of book value at beginning of term
Original
currency
Exchange
rate
Translated to
RMB
Original
currency
Exchange
rate
Translated to
RMB
Cash 59,076.93 68,994.69
Incl. HKD 13,620.31 0.88 12,012.38 15,164.51 0.88 13,373.43
USD 20.00 6.83 136.64
Bank deposit 173,786,857.36 112,264,098.74
Incl. USD 339,449.92 6.83 2,319,113.71 594,075.71 6.83 4,060,269.85
HKD 100,127.76 0.88 88,242.61 65.1 0.88 57.41
Other monetary
fund 188,107,164.01 99,305,354.45
Incl. USD 84,776.77 6.83 579,415.31
HKD
Total 361,953,098.30 211,638,447.8854
Company and its subsidiaries’ bank draft deposit, future contract deposit, guarantee
letter deposit, and credit card deposit. They are not treated as cash equivalents at
preparing of cash flow statement.
(2) Transactional financial assets
Details of transactional financial assets:
Note: Balance of derivate financial assets: RMB1,130,025.80, which was the fluctuating
profit of aluminum future contract held by Fangda New Material.
(3) Notes receivable
Details of notes receivable:
Note 1: Note receivable decreased by RMB9,043,790.29, which was caused by
due of bank accepted draft of RMB7,246,373.31 issued by Tianjin Metro Co. on June
30, 2009.
Note 2: Endorsed notes not expired are totaled to RMB3,509,946.63, and will be
expired from July 8, 2009 to December 17, 2009.
Items and details
Balance of book value at
end of term
Balance of book value at
beginning of term
1. Transactional bond investment
2. Transactional equity instrument
investment
3. Financial assets assigned to be
measured on fair value, and variations
accounted into current income
4. Derivate financial assets 1,130,025.80
5. Others
Total 1,130,025.80
Categories
Balance of book value at
end of term
Balance of book value
at beginning of term
Bank acceptance 1,860,000.00 10,777,997.56
Commercial
acceptance 125,792.73
Total 1,860,000.00 10,903,790.2955
(4) Account receivable
(1) Account receivable are categorized as the following:
Note 1: The Company treats receivable accounts over RMB8 million as
significant individual accounts. No evidence of individual impairment was found
after testing on such accounts. Thus bad debt provisions are provided according to
their ages.
Note 2: The Company judges receivable accounts overdue for over 3 years as
great risk accounts.
(2) Ages of receivables and bad debt provisions:
Category
Balance of book value at end of term
Amount Portion % Bad debt
provision Net amount
Single receivable account with mass
amount 104,662,764.01 26.75% 26,489,174.94 78,173,589.07
No major amount individually but with
great risk after combined with others with
similar credit risk 160,362,605.22 40.99% 83,255,709.90 77,106,895.32
Other non-material receivables 126,239,806.57 32.26% 8,244,579.02 117,995,227.55
Total 391,265,175.80 100.00% 117,989,463.86 273,275,711.94
Category
Balance of book value at beginning of term
Amount Portion % Bad debt
provision Net amount
Single receivable account with mass
amount 145,777,676.07 34.30% 25,034,605.45 120,743,070.62
No major amount individually but with
great risk after combined with others with
similar credit risk 148,026,102.10 34.83% 76,705,401.76 71,320,700.34
Other non-material receivables 131,181,723.36 30.87% 13,277,700.97 117,904,022.39
Total 424,985,501.53 100% 115,017,708.18 309,967,793.35
Age
Balance of book value at end of term
Amount Portion % Bad debt provision Net amount
within 1 year 107,933,908.79 27.59% 3,300,030.48 104,633,878.3156
(3) The top 5 receivable accounts are totalled to RMB79,277,081.38, account for
20.26% of the total of receivables, details are:
Note: As of June 30, 2009, the top 5 clients of receivable accounts are totaled to
RMB79,277,081.38, which was mainly project payments of curtain wall and metro
screen door projects, account for 20.26% of total receivables.
(4) Change of bad debt provisions on receivable accounts:
1-2 yrs (included) 60,478,367.15 15.46% 6,121,574.54 54,356,792.61
2-3 yrs (included) 27,927,779.68 7.14% 8,420,821.96 19,506,957.72
Over 3 years 194,925,120.18 49.82% 100,147,036.88 94,778,083.30
Total 391,265,175.80 100.00% 117,989,463.86 273,275,711.94
Age
Balance of book value at beginning of term
Amount Portion % Bad debt provision Net amount
within 1 year 165,562,632.30 38.96% 4,966,845.75 160,595,786.55
1-2 yrs (included) 37,237,611.40 8.76% 3,722,493.99 33,515,117.41
2-3 yrs (included) 39,049,264.12 9.19% 11,694,276.72 27,354,987.40
Over 3 years 183,135,993.71 43.09% 94,634,091.72 88,501,901.99
Total 424,985,501.53 100% 115,017,708.18 309,967,793.35
Name of the companies Balance of book value
at end of term Overdue age Portion in total %
Balance of book
value at beginning of
term
Xiamen Channel Center 28,562,307.88 1-2 years 7.30% 36,238,127.24
Dalian Yunshan 19,194,665.60 Over 3 years 4.91% 19,194,665.60
Nanjing Court 10,177,208.16 Over 3 years 2.60% 10,177,208.16
Guangzhou Metro 11,792,264.63 within 1 year 3.01% 14,701,775.02
Lanzhou Zhongchuan
Airport 9,550,635.11 Over 3 years 2.44% 9,550,635.11
Total 79,277,081.38 20.26% 89,862,411.13
Items
Balance of book
value at
beginning of
term
Increased this term Decreased this term
Book balance at end
of term
Provided this
year
Other
transferred
in
Written
back Transferred
Other
transferred
out57
(5) Receivable accounts which are fully provided provisions are totaled to
RMB6,063,848.01, details:
(6) No debt due from shareholders with over 5% (included) of shares of the
Company at the end of report term.
(6) Advance account
(1) Ages of advance accounts:
Bad debt
provision 115,017,708.18 3,078,294.27 72,567.22 33,971.37 117,989,463.86
Total 115,017,708.18 3,078,294.27 72,567.22 33,971.37 117,989,463.86
Name of clients Amount
Account
property Reason to provide
Guodu Property Development
(Shenzhen) Co., Ltd. 803,340.45Project payment
Aged over 5 years, not expectable
to be retrieved
Shenzhen Zhaoyunda Machinery Co.,
Ltd. 660,625.41 Trade
Aged over 5 years, not expectable
to be retrieved
Qinghuangdao Bohai Aluminum
Curtain Wall Co., Ltd. 648,100.95 Trade
Aged over 5 years, not expectable
to be retrieved
Shanghai Metro Pudong
Commanding Center 433,868.60 Trade
Aged over 5 years, not expectable
to be retrieved
Fujian Fuzhou Changrong Trade Co.,
Ltd. 294,175.00 Trade
Aged over 5 years, not expectable
to be retrieved
Beijing Zhongan Decoration and
Installation Co., Ltd. 250,174.00Project payment
Aged over 5 years, not expectable
to be retrieved
Shenzhen Lushan Property Co., Ltd. 212,972.15 Trade
Aged over 5 years, not expectable
to be retrieved
Guangdong Overseas Construction
Co. Development Division No.9 211,717.68Project payment
Aged over 5 years, not expectable
to be retrieved
Total 3,514,974.24
Age
Balance of book value at end of term Balance of book value at beginning of
term
Amount Portion % Amount Portion %
within 1 year 23,935,056.89 98.02% 9,522,782.07 84.31%
1-2 yrs (included) 416,167.07 1.70% 1,705,722.85 15.10%58
(2) Increased by RMB14,518,163.98, which was advance payment by
subsidiaries to suppliers of materials, details:
(3) As of June 30, 2009, no advance payment to shareholders with 5% or over
of shareholding in the Company.
(7) Interest receivable
(8) Other account receivable
(1) Other receivables are categorized as the following:
2-3 yrs (included) 66,999.61 0.27% 66,999.61 0.59%
Over 3 years
Total 24,418,223.57 100% 11,295,504.53 100.00%
Suppliers Amount Date Note
Shenzhen Kaisheng Energy
Saving Tech Co., Ltd. 6,446,700.00
within 1
year Trade
德国阿尔卡特德恩科电机公司1,052,932.13
within 1
year Trade
Foshan Houhong Stainless Steel
Co., Ltd. 1,329,213.60
within 1
year Trade
Guangdong Jianmei Aluminum
Co., Ltd. 1,596,130.99
within 1
year Trade
Total 10,424,976.72
Categories
Balance of book value
at end of term
Balance of book value
at beginning of term
Deposit interest 1,019,063.66
Total 1,019,063.66
Category
Balance of book value at end of term
Amount Portion % Bad debt
provision Net amount
Single receivable account with mass amount
No major amount individually but with great
risk after combined with others with similar
credit risk 8,991,254.03 18.55% 4,522,150.03 4,469,104.0059
Note 1. The Company treats other receivable accounts over RMB8 million as
significant individual accounts.
Note 2: The Company judges other receivable accounts overdue for over 3
years as great risk accounts.
(2) Ages of other receivable accounts:
Other non-material receivables 39,485,533.76 81.45% 3,883,061.12 35,602,472.64
Total 48,476,787.79 100.00% 8,405,211.15 40,071,576.64
Category
Balance of book value at beginning of term
Amount Portion % Bad debt
provision Net amount
Single receivable account with mass amount
No major amount individually but with great
risk after combined with others with similar
credit risk 9,044,248.21 18.25% 4,548,647.12 4,495,601.09
Other non-material receivables 40,510,837.57 81.75% 3,104,166.86 37,406,670.71
Total 49,555,085.78 100% 7,652,813.98 41,902,271.80
Age
Balance of book value at end of term
Amount Portion % Bad debt provision Net amount
within 1 year 22,788,138.00 47.01% 668,642.11 22,119,495.89
1-2 yrs (included) 9,763,796.81 20.14% 974,129.22 8,789,667.59
2-3 yrs (included) 6,029,369.42 12.44% 1,808,810.82 4,220,558.60
Over 3 years 9,895,483.57 20.41% 4,953,629.00 4,941,854.57
Total 48,476,787.79 100.00% 8,405,211.15 40,071,576.64
Age
Balance of book value at beginning of term
Amount Portion % Bad debt provision Net amount
within 1 year 27,360,529.45 55.21% 806,800.58 26,553,728.87
1-2 yrs (included) 8,238,630.80 16.63% 823,863.08 7,414,767.72
2-3 yrs (included) 4,911,677.32 9.91% 1,473,503.20 3,438,174.12
Over 3 years 9,044,248.21 18.25% 4,548,647.12 4,495,601.09
Total 49,555,085.78 100% 7,652,813.98 41,902,271.8060
(3) The top 5 other receivables are totaled to RMB8,362,416.00, account for
17.26% of the total receivables, details:
（1） No other receivables due from shareholders with 5% or over of the
Company’s shares
（2） Change of bad debt provisions on other receivable accounts:
(9) Inventories
(1) Details of inventories
Name of the companies
Balance of book value at end of term Balance of book
value at
beginning of
Amount Description Overdue age Portion in total % term
Shenzhen Construction Trade
Center 2,711,671.00 Deposit 1-2 yrs 5.59% 7,121,671.00
China Merchants Future Brokerage
Ltd. 2,150,745.00
Future contract
deposit within 1 year 4.44%
Xinba Construction Group Co., Ltd. 1,500,000.00 Deposit 1-2 yrs 3.09% 1,500,000.00
Ningxia Guest House 1,000,000.00 Deposit Over 3 yrs 2.06% 1,000,000.00
Hubei Baoli Property Co., Ltd. 1,000,000.00 Deposit within 1 year 2.06%
Total 8,362,416.00 17.25% 9,621,671.00
Items
Balance of
book value at
beginning of
term
Increased this term Decreased this term
Book balance at
end of term
Provided this
year
Other
transferred in
Written
back Transferred
Other
transferred
out
Bad debt
provision 7,652,813.98 756,615.83 2,944.22 1,274.44 8,405,211.15
Total 7,652,813.98 756,615.83 2,944.22 1,274.44 8,405,211.15
Categories
Balance of book value at end of
term
Balance of book value at
beginning of term
On-the-way goods
(purchased) 2,128,101.75
Raw materials 40,242,265.46 23,086,642.65
Product in process 27,613,694.00 30,227,023.31
Semi-finished goods 1,715.38
Finished goods in stock 21,545,795.49 17,059,578.4961
Note: Increasing of inventory was caused by increasing of construction-inprocess
under the subsidiaries, and increasing of materials in stock.
(2) Change of inventory impairment provision:
Note: The Company provides inventory impairment provisions at the lower of
cost and realizable value.
(10) Other current asset
Other current asset are categorized as the following:
Note: Other current asset decreased by RMB5 million from the beginning of term,
which was mainly caused by retrieving of trust capital and interests on May 7, 2009.
The return rate was 6.17%.
Constructions and
engineering 103,335,500.80 80,575,436.43
Low price consumable 1,715,523.24 1,729,028.87
OEM materials 1,487,312.86 380.74
Less: Inventory impairment
provision 6,469,851.71 6,469,851.71
Total 191,598,341.89 146,209,954.16
Categories
Balance of book
value at
beginning of
term
Provided this
term
Decreased this term
Balance of book
Written value at end of term
back Transferred
Raw materials 1,204,335.38 1,204,335.38
Finished goods in
stock 5,066,800.21 5,066,800.21
Construction
engineering 84,279.62 84,279.62
Low price
consumable 114,436.50 114,436.50
Total 6,469,851.71 6,469,851.71
Items
Balance of book value at
end of term
Balance of book value at
beginning of term
Entrusted loan 5,000,000.00
Total 5,000,000.0062
(11) Disposable financial asset
Disposable financial assets are categorized as the following:
(12) Long-term investment
(1) Long-term equity investments are categorized as the followings:
Note 1: Long-term equity investment decreased by RMB7,160,645.90, which was
mainly caused by closing up of Chongqing Fangda New Construction Material Co.,
Ltd. in the report term, and RMB2,310,645.90 of long-term equity investment and
relative impairment provisions was setoff; ST Magnetic Card has finished its share
equity relocation scheme, shares were transferred to sellable financial assets, the longterm
equity investment in ST Magnetic Card was reduced by RMB4,850,000.00 , and
long-term equity investment impairment provision was reduced by
RMB3,3500,000.00.
(2) Long-term equity investment on cost basis:
Items
Balance of book value
at end of term
Balance of book value at
beginning of term
Sellable equity instruments 5,223,481.75 14,068,500.00
Less: impairment provision for
disposable financial assets
Total 5,223,481.75 14,068,500.00
Items
Balance of book
value at beginning
of term
Increased this
term
Decreased this
term
Balance of book
value at end of
term
Investment in partnerships 3,006,859.69 3,006,859.69
Investment in other enterprises 7,160,645.90 7,160,645.90
Total 10,167,505.59 3,006,859.69
Less: Long-term investment
impairment provision 5,660,645.90 5,660,645.90
Net amount 4,506,859.69 3,006,859.69
Name of the Companies
Initial
amount
Balance of book
value at
beginning of term
Increased
this term
Decreased
this term
Balance of book
value at end of
term
Tianjin Global Magnetic Card
Co., Ltd.
4,850,000.00 4,850,000.00 4,850,000.0063
(3) Long-term equity investment on equity basis
(Continue)
Note: Fangda New Material Co., Ltd. invested RMB3 million in Nanchang
Fangda Property Co., Ltd. (Fangda Property). Fangda Property was registered with
RMB50 million of capital. The Company is holding 30% of the shares. Whereas
according to the agreement with Shenzhen Western Civil Construction Co., Ltd.
(Western Co.), the Company was supposed to invest RMB15 million. The rest of
RMB12 million was inputted by Western Co. Meanwhile the Company guaranteed to
obtain exemption of local fees for Nanchang Fangda Financial Building to RMB12
million. When the exemption obtained is lower than RMB12 million, the Company
will compensate to Western Company in other ways. When the above responsibilities
is outstanding, the Company doesn’t recognize the gains from the difference of fair
value of equity in Fangda Property and the initial investment cost.
(4) Impairment of long-term equity investment
Chongqing Fangda New
Construction Material Co., Ltd. 2,310,645.90 2,310,645.90 2,310,645.90
Total 4,850,000.00 4,850,000.00 7,160,645.90
Name of the
Companies
Share
proportion
%
Voting rights Initial
investment
Additional investment
(Less: shares sold)
Accumulative
change of
equity
Accumulative
cash dividend
Nanchang Fangda
Property Co., Ltd. 30% 30% 3,000,000.00 6,859.69 30%
Total 3,000,000.00 6,859.69
Name of the Companies
Balance of book
value at
beginning of
term
Equity changed this
term
Cash dividend of
the current term
Balance of book
value at end of
term
Nanchang Fangda Property
Co., Ltd. 3,006,859.69 3,006,859.69
Total 3,006,859.69 3,006,859.69
Name of the Companies
Balance of
book value at
beginning of
term
Provided this
term
Decreased this term
Balance of book
value at end of
Written term
back Transferred
Tianjin Global Magnetic Card
Co., Ltd. 3,350,000.00 3,350,000.0064
(13) Investment properties
Change of investment properties:
Note: Among the investment properties, Fangda Science & Tech Building,
Hall of Residence, and the whole workshop (book value at end of report term:
RMB225,037,663.44) have been set to loan mortgage. Details are available with
Note IX. (I) –18.
(14) Fixed assets
（1） Initial value and accumulative depreciations of fixed assets:
Chongqing Fangda New
Construction Material Co., Ltd.
(Chongqing Fangda) 2,310,645.90 2,310,645.90
Total 5,660,645.90 5,660,645.90
Items
Balance of book
value at
beginning of term
Increased this
term
Decreased this
term
Balance of book
value at end of
term
I. Total costs 199,167,695.03 199,167,695.03
1. Houses rented out 199,167,695.03 199,167,695.03
2. Land rights rented out
II. Total of fair value fluctuation 62,566,705.29 2,385,370.72 64,952,076.01
1. Houses rented out 62,566,705.29 2,385,370.72 64,952,076.01
2. Land rights rented out -
III. Total of investment property
book value 261,734,400.32 2,385,370.72 264,119,771.04
1. Houses rented out 261,734,400.32 2,385,370.72 264,119,771.04
2. Land rights rented out
Items
Balance of book
value at beginning
of term
Increased this
term
Decreased this
term
Balance of book
value at end of term
I. Total of fixed asset
original value 468,955,916.14 4,501,012.70 11,140,148.41 462,316,780.43
1. Houses & buildings 196,625,750.20 2,197,069.73 11,064,548.41 187,758,271.52
2. Machinery 226,987,525.11 2,010,400.41 24,520.00 228,973,405.5265
Note: Fixed assets added this year are initially valued RMB4,501,012.70,
including: RMB1,611,229.00 transferred from construction-in-process to fixed assets
(production equipment), fixed assets reduced this year are initially valued
RMB11,140,148.41, the accumulative depreciation decreased by RMB875,384.58,
which was because Fangda New Material transferred the land using rights
originally accounted under fixed assets and accumulative depreciation over to
intangible assets and accumulative amortization respectively.
（2） Details of properties have not obtained official property certificates:
3. Automobile 10,112,412.26 173,800.00 0.00 10,286,212.26
4. Electronics and other
devices 35,230,228.57 119,742.56 51,080.00 35,298,891.13
II. Total of accumulative
depreciation 193,622,877.59 10,757,760.60 875,384.58 203,505,253.61
1. Houses & buildings 26,257,386.44 2,498,207.79 830,079.48 27,925,514.75
2. Machinery 140,855,396.82 6,906,225.23 15,777.00 147,745,845.05
3. Automobile 6,565,585.24 215,891.30 0.00 6,781,476.54
4. Electronics and other
devices 19,944,509.09 1,137,436.28 29,528.10 21,052,417.27
III. Total of fixed asset
impairment provision 1,576,660.08 1,576,660.08
1. Houses & buildings 0.00
2. Machinery 1,576,660.08 1,576,660.08
3. Automobile 0.00
4. Electronics and other
devices
IV. Total of fixed asset
book value 273,756,378.47 257,234,866.74
1. Houses & buildings 170,368,363.76 159,832,756.77
2. Machinery 84,555,468.21 79,650,900.39
3. Automobile 3,546,827.02 3,504,735.72
4. Electronics and other
devices 15,285,719.48 14,246,473.86
Categories Description of Original book v Accumulated d Net book value Note66
Note: The above properties are under process of obtaining right certificates.
(15) Construction in process
Profiles and change of construction in process
(Continue)
property alue epreciation:
Houses &
buildings Office building 18,643,357.07 1,289,591.83 17,098,531.81
Used by Fangda New
Material Co.
Houses &
buildings
Employees’
dinning hall 2,857,833.06 214,907.37 2,607,501.67
Houses &
buildings dormitory 3,801,544.09 296,580.67 3,456,198.15
Houses &
buildings
purify
workshop 1,240,040.56 632,268.82 607,771.74
Used by Fangda
Aluminum
Total 26,542,774.78 2,433,348.69 23,770,003.37
Project Budget Fund
recourse
Balance of book value at beginning of
term Increased this term
Amount
Incl. Interest
capitalizatio
n
Impairm
ent
provisio
n
Amount Incl. Interest
capitalization
Shenyang Fangda Extension
Chip Workshop (Phase I) RMB9 mil.
Independe
nt 5,136,190.88 1,088,742.33
Shenyang Fangda other
construction cost
RMB10
mil.
Independe
nt 2,582,933.58 969,130.57
Equipment to be installed
(Guoke) RMB5 mil. 1,710,108.73 19,845.03
New machinery and
constructions under New
Materials 278,419.52
Total 9,429,233.19 2,356,137.45
Project
Decreased this term Balance of book value at end of term
Investment
Amount on budget %
Incl.
Transferred to
fixed asset this
term Amount
Incl. Interest
capitalization
Impair
ment
provisi
on
Shenyang Fangda Extension Chip
Workshop (Phase I) 6,224,933.21 69.17%
Shenyang Fangda other construction
cost 3,552,064.15 35.52%67
(16) Intangible assets
(1) Intangible assets, accumulative amortizations, and changes:
Equipment to be installed (Guoke) 1,611,229.00 1,611,229.00 118,724.76 34.60%
New machinery and constructions
under New Materials 278,419.52
Total 10,174,141.64
Items
Balance of
book value at
beginning of
term Increased this term
Decreased this
term
Balance of book
value at end of
term
I. Total of intangible asset initial
value 76,605,643.67 16,630,046.92 0.00 93,235,690.59
Fangda Town land using rights
(Phase I)（note 1) 8,543,250.00 0 8,543,250.00
Fangda Town land using rights
(Phase III) (note 2) 4,783,050.00 0.00 4,783,050.00
The west of Qibu Zone of
Nanchang High-tech Zone land
using rights (note 3) 4,985,227.00 4,985,227.00
Nanchang High-tech Zone H-5 land
using rights (note 4) 11,064,548.41 11,064,548.41
Shenyang Fangda Land using rights
(Note 5) 42,038,791.23 0.00 0.00 42,038,791.23
Semi-conduct technique 5,000,000.00 0.00 0.00 5,000,000.00
GaN LED blue light tech 4,000,000.00 0.00 0.00 4,000,000.00
Other non-pattern tech 2,949,078.80 5,540,853.51 0.00 8,489,932.31
Other patterns 1,194,060.00 24,645.00 0.00 1,218,705.00
Trademark 544,973.60 0.00 0.00 544,973.60
Computer software 2,491,763.04 0.00 0.00 2,491,763.04
Others 75,450.00 0.00 0.00 75,450.00
II. Total of intangible asset
amortization 15,771,065.90 2,414,186.61 0.00 18,185,252.51
Fangda Town land using right
(Phase I) 3,610,705.04 42,157.63 0.00 3,652,862.67
Fangda Town land using right
(Phase III) 1,139,960.25 72,715.68 0.00 1,212,675.9368
(2) The initial value of intangible assets has increased by RMB16,630,046.92
over the beginning of term, which was because Fangda New Material transferred the
land using rights originally accounted under fixed assets and accumulative
The west of Qibu Zone of
Nanchang High-tech Zone land
using rights 1,001,191.16 48,483.12 1,049,674.28
Nanchang High-tech Zone H-5 land
using rights 830,079.48 830,079.48
Shenyang Fangda Land using rights 903,842.70 420,417.90 0.00 1,324,260.60
Semi-conduct technique 3,500,000.18 250,000.00 0.00 3,750,000.18
GaN LED blue light tech 2,633,334.47 200,000.00 0.00 2,833,334.47
Other non-pattern tech 1,285,655.34 360,684.35 0.00 1,646,339.69
Other patterns 346,798.13 56,581.11 0.00 403,379.24
Trademark 538,746.10 705.00 0.00 539,451.10
Computer software 785,007.56 129,274.86 0.00 914,282.42
Others 25,824.97 3,087.48 0.00 28,912.45
III. Total of intangible asset book
value 60,834,577.77 14,215,860.31 0.00 75,050,438.08
Fangda Town land using right
(Phase I) 4,932,544.96 -42,157.63 0.00 4,890,387.33
Fangda Town land using right
(Phase III) 3,643,089.75 -72,715.68 0.00 3,570,374.07
he west of Qibu Zone of Nanchang
High-tech Zone land using rights 3,984,035.84 -48,483.12 3,935,552.72
Nanchang High-tech Zone H-5 land
using rights 10,234,468.93 10,234,468.93
Shenyang Fangda Land using rights 41,134,948.53 -420,417.90 0.00 40,714,530.63
Semi-conduct technique 1,499,999.82 -250,000.00 0.00 1,249,999.82
GaN LED blue light tech 1,366,665.53 -200,000.00 0.00 1,166,665.53
Other non-pattern tech 1,663,423.46 5,180,169.16 0.00 6,843,592.62
Other patterns 847,261.87 -31,936.11 0.00 815,325.76
Trademark 6,227.50 5,522.50
Computer software 1,706,755.48 1,577,480.62
Others 49,625.03 46,537.5569
depreciation over to intangible assets and accumulative amortization respectively.
(3) No evidence of impairment on intangible assets at the end of report term, thus
no impairment provision is provided.
（17）R&D expense
R&D expenses in the report term are:
（18）Goodwill
（19）Differed income tax asset
(1) Differed income tax assets are:
Category
Balance of book
value at beginning
of term
Increased this
term
Decreased this
term
Balance of book
value at end of
term
Reduced this term
to current income to intangible asset
Expenses in
research stage
Expenses in
developing stage 7,783,177.73 3,060,856.21 6,652,159.01 4,191,874.93 6,652,159.01
Total 7,783,177.73 3,060,856.21 6,652,159.01 4,191,874.93 6,652,159.01
Name of the
Companies Sources Initial amount
Balance of book
value at
beginning of term
Increased this
term
Decreased
this term
Balance of
book value at
end of term
Shenzhen Woke equity acquired with
premium price 8,197,817.29 8,197,817.29 8,197,817.29
Fangda Yide
minority shares
acquired with
premium price 746,519.62 746,519.62 746,519.62
Total 8,944,336.91 8,944,336.91 8,944,336.91
Less: goodwill
impairment provision 746,519.62 746,519.62 746,519.62
Net amount 8,197,817.29 8,197,817.29 8,197,817.29
Items
Balance of book value at end of term Balance of book value at beginning
of term
Provisional
difference
Differed income tax
asset
Provisional
difference
Differed income tax
asset
Asset impairment
provision 84,164,996.95 18,434,248.34 88,742,277.68 17,685,283.48
Neutralizable
losses 7,553,389.97 830,872.90 6,569,414.68 656,941.4770
(2) Differed income tax assets recognized at end of term:
（20）Asset impairment provision
（21）Assets with limited ownership
Assets with limited ownership are:
Total 91,718,386.92 19,265,121.24 95,311,692.36 18,342,224.95
Items
Deductible provisional
differences Note
Asset impairment
provision 57,834,982.42Fangda Yide, Fangda Guoke, Fangda
Aluminum and the Company may not able to
realize sufficient taxable income to deduct the
benefit from deductible differed income tax.
Neutralizable
losses 99,081,528.50
Total 156,916,510.92
Items
Balance of book
value at
beginning of
term
Increased this term Decreased this term
Balance of book
value at end of
Provided term
Other
transferred
in
Written
back Transferred
Other
transferred
out
Bad debt provision 122,670,522.16 3,834,910.10 75,509.44 35,247.81 126,394,675.01
Inventory impairment
provision 6,469,851.71 6,469,851.71
Long-term equity
investment
impairment provision 5,660,645.90 5,660,645.90
Fixed asset
impairment provision 1,576,660.08 1,576,660.08
Goodwill impairment
provision 746,519.62 746,519.62
Total 137,124,199.47 3,834,910.10 75,509.44 5,695,893.71 135,187,706.42
Category of assets
Balance of book
value at
beginning of
term
Increased this
term Decreased this term
Balance of book
value at end of
term Reason of
limitation
Fangda Science &
Tech Building 182,306,813.72 2,238,449.72 184,545,263.44
Whole dormitory Loan pledge
building 11,604,100.00 11,604,100.00
Whole special
workshop
28,888,300.00 28,888,300.0071
Note: Fangda Science & Tech Building, Dormitory building, and special
workshop are investment properties measured by fair value, change in the term was
caused by fluctuation of fair values.
（22）Short-term loans
Short-term loans are:
Note 1: Guaranteed loans at end of term was RMB272 million, which was
caused by transferring of original RMB179 million long-term loans to short-term
loans. Pledged with Fangda Science & Tech Building, Dormitory building, and
special workshop, Fangda Town land (phase I and III), along with the joint
guarantee provided by Fangda Decoration, Fangda Automatic, and Fangda New
Material. Fangda New Material used short term loan of RMB82 million, Fangda
Aluminium provided RMB5 million of guarantee, the rest are secured by the
Company. The Company also secured for the short-term loan of RMB30 million
raised by Fangda Decoration.
Note 2: The Company use the fund obtained by discount of bank received
notes receivable, as short-term loans.
Note 3: Balance of short-term loans at end of term has increased by
RMB236,545,541.51 over the beginning of term, which was caused by short-term
Fangda Town land
using right (Phase I) 4,932,544.96 42,157.63 4,890,387.33
Fangda Town land
using right (Phase
III)
3,643,089.75 72,715.68 3,570,374.07
Total 231,374,848.43 2,238,449.72 114,873.31 233,498,424.84
Items Balance of book
value at end of term
Balance of book
value at beginning of
term
Credit loan
Guarantee loan 272,000,000.00 148,300,000.00
Loan by pledge
Loan obtained from discount
of notes receivable 193,928,013.00 81,082,471.49
Total 465,928,013.00 229,382,471.4972
loans by discount of notes receivable and transferring of long-term loans to shortterm
loans.
（23）Notes payable
Notes payable are:
Note: Balance at end of term decreased by RMB14,712,466.57 from the beginning
of term, which was caused by due and cashing of bank notes payable by Fangda New
Material.
（24）Account payable
（2） Payables overdue for over one year:
(2) As of June 30, 2009, no payable due to shareholders of the Company with 5%
or over of shares.
(25)Account received in advance
（1） Account received in advance due over one year
Category
Balance of book value at
end of term
Balance of book value at
beginning of term
Bank acceptance 43,388,156.98 56,653,018.90
Commercial
acceptance 604,425.60 2,052,030.25
Total 43,992,582.58 58,705,049.15
Suppliers Amount Date of occur Description Reason of overdue
Fangda Building provisional
booking 1,149,017.69 Year 2005 Project
payment
Not claimed by the
creditor
Deawoo Group (South Korea) 900,000.00 Year 2004 Trade Not claimed by the
creditor
Fujian Quanzhou Sansong Ceramic
Development Co., Ltd. 880,000.00 Year 2004 Trade Not claimed by the
creditor
Total 2,929,017.69
Items Amount Date of
occur Description Reason of overdue
Shenzhen Metro Co., Ltd. 26,412,053.72 Year 2007 Project payment not settled yet73
(2) As of June 30, 2009, no advance received from shareholders of the Company
with 5% or over of shares.
(26) Employees’ wage payable
Employees’ wage payable are:
（27）Tax payable
Tax payable are detailed as:
Shenyang Metro Co., Ltd. 3,932,238.90 Year 2007 Project payment not settled yet
China Jiangxi International
Economic & Technical Cooperation
Co., Ltd.
5,000,000.00 Year 2007 Deposit for
goods not settled yet
Changsha Lugu Real Estate 424,697.10 Year 2004 Project payment Settled, wait for
treating
Total 35,768,989.72
Items
Balance of book
value at
beginning of
term
Increased this
term Paid this term
Balance of book
value at end of
term
Wage, bonus, allowance and
subsidies 64,978.92 24,078,973.16 24,143,952.08
Employee welfare 412,465.92 412,465.92
Social insurance 2,278,126.21 2,244,458.89 33,667.32
Trade union and education
allowance 4,609,617.75 81,598.94 510,404.59 4,180,812.10
Others
Total 4,674,596.67 26,851,164.23 27,311,281.48 4,214,479.42
Category
Balance of book value at
end of term
Balance of book value at
beginning of term
VAT -1,825,127.82 1,918,482.65
Business tax 16,854,260.72 19,828,983.75
Enterprise income
tax 3,796,460.53 4,384,962.00
Land using tax 472,310.4074
（28）Other account payable
(1) Other payable with large amount and due over one year:
(2) As of June 30, 2009, no other payable due to shareholders of the Company with 5%
or over of shares.
（29）Other current liability
Other current liabilities are differed gains, details are:
（30）Long-term borrowings
Long-term borrowings are:
City construction &
service tax 1,820,462.53 1,903,683.50
Property tax 543,538.05 1,129,953.62
Education surtax 867,784.20 915,290.88
Personal income tax 650,119.78 587,013.01
Other taxes 607,623.57 105,032.40
Total 23,315,121.56 31,245,712.21
Items Amount Date of
occur Description Reason of
overdue
Ningbo Lailai Energy-saving Doors and
Windows Co., Ltd. 2,060,000.00 Year 2006 Deposit construction in
process
Shenzhen Yachang Color Printing Co., Ltd. 950,000.00 Year 2005 Rent deposit In contract period
Zhejiang Haitian Construction Group
Nanjing Branch 350,000.00 Year 2006 Deposit construction in
process
Total 3,360,000
Items
Balance of book
value at end of term
Balance of book value at
beginning of term
High power GaN LED lighting, white light
source technologies fund 1,016,379.24 1,016,379.24
Others 232,552.77
Total 1,248,932.01 1,016,379.2475
Note: The Company has long-term borrowings of RMB179 million at
beginning of term, which has been transferred by RMB160 million over to shortterm
borrowings. Details are available with Note IX (I)19.
（31）Differed income tax liability
Note: Differed income tax liabilities decreased by RMB890,743.04 at the end of
term, which was caused by disposal of sellable financial assets.
（32）Other current liability
Other current liabilities are differed gains, details are:
Categories
Balance of book value at end
of term
Balance of book value at
beginning of term
Pledged loan 179,000,000.00
Total 179,000,000.00
Items
Balance of book value at end of
term
Balance of book value at
beginning of term
Provisional
difference
Differed income
tax liability
Provisional
difference
Differed income
tax liability
Adjustment of investment property
fair value 2,068,224.68 455,009.43 2,125,410.87 425,082.17
Adjustment of sellable financial asset
fair value 3,430,635.36 754,739.78 8,377,050.40 1,675,410.08
Total 5,498,860.05 1,209,749.21 10,502,461.27 2,100,492.25
Items
Balance of book
value at end of term
Balance of book
value at beginning of
term
Application and demonstration project
of LED lighting tech 2,388,694.50 3,500,000.00
Purchase of equipment for semiconductor
lighting technical
development project 950,000.00 950,000.00
Fund for optical-electric product
projects 480,000.00 480,000.00
Optical crystal manufacturing tech 1,200,000.00
Technical reforming 747,000.00
Total 5,765,694.50 4,930,000.0076
（33）Share capital
Change of share capital:
Class of shareholding
Balance of book value at
beginning of term Changed in current term
Balance of book value at
end of term
Amount of
shares Proportion
Transferred
from reserves Others Sub-total
Amount of
shares Proportion
I. Shares with
conditional
subscription
1. State-owned shares
2. National legal
person shares
3. Other domestic
shares 44,313,321 10.38% 65,073 0.02%
Incl. Non-government
domestic legal person
shares 44,248,248 10.37% -44,248,248 -44,248,248
Domestic natural
person shares 65,073 0.02% 65,073 0.02%
4. Overseas
shareholding
Incl. Shares held by
foreign legal persons
Foreign natural person
shares
Total of conditional
shares 44,313,321 10.38% 65,073 0.02%
III. Shareholding
without limitation to
sell
1. Common shares in
RMB 173,157,655 40.57% 44,248,248 44,248,248 217,405,903 50.94%
2. Foreign shares listed
at home 209,315,383 49.04% 209,315,383 49.04%
3. Foreign shares
placed abroad
4. Others
Total of unconditional
shares 382,473,038 89.62% 426,721,286 99.98%
Total of capital shares 426,786,359 100.00% 426,786,359 100.00%77
Note: Decreasing of “Non-government domestic legal person shares” with limitation for selling was
because, according to the Prompt Announcement of the Board dated April 15, 2009, the limited shares of
44,248,248 shares become negotiable date was April 17, 2009, accounted for 10.37% of the total share
capital of the Company.
(34)Capital reserves
Change of capital reserves:
Note: Capital reserves – other capital reserves decreased because disposal of
sellable financial assets.
（35）Surplus reserves
No change happened to surplus reserves, details are:
（36）Retained profit
Change of retained profit:
Items
Balance of book
value at beginning
of term
Increased this
term Decreased this term
Balance of book
value at end of
term
Share capital
premium 31,774,896.75 31,774,896.75
Other capital
reserves 29,320,411.76 4,586,987.89 24,733,423.87
Total 61,095,308.51 4,586,987.89 56,508,320.62
Items Balance of book
value at
beginning of
term
Increased this
term
Decreased this
term
Balance of book
value at end of
term
Statutory surplus
reserves 6,388,697.44 6,388,697.44
Total 6,388,697.44 6,388,697.44
Items Current term Previous Year
Retained at end of last year 65,445,537.00 42,184,655.09
Plus: Change of accounting
policy
Retained at beginning of this 65,445,537.00 42,184,655.0978
（37）Minor shareholders’ equity
Minor shareholders’ equity attributable to minor shareholders of subsidiaries:
Note: Increase of minority shareholders’ equity was caused by investment of
RMB50 million as the 2nd input of Shenyang Hunan New Area State-owned Assets Operation
Co., Ltd., in which RMB20 million was recorded to registered capital of Shenyang Fangda Semi-conductor
Lighting Co., Ltd. and RMB30 million was recorded to capital reserves.
（38）Turnover / cost
（2） Detail of turnover and costs:
year
Plus: net profit of current
term 30,076,634.28 23,260,881.91
Attributable profit 95,522,171.28 65,445,537.00
Less: Statutory surplus
reserves
Plus: surplus used to
makeup losses
Retained profit at the end of
term 95,522,171.28 65,445,537.00
Name of the subsidiaries Name of minority shareholders Balance of book
value at end of
term
Balance of book
value at beginning
of term
Shenyang Fangda Semi-conductor
Lighting Co., Ltd.
Shenyang Hunan New Area State-owned
Assets Operation Co., Ltd. 113,805,148.00 66,802,663.49
Shenyang Fangda Semi-conductor
Lighting Co., Ltd. Li Gang 765,661.78 801,631.96
Total 114,570,809.78 67,604,295.45
Items Occurred current term
Amount occurred in
same period last year
Turnover 369,945,313.89 365,642,311.79
Incl. Main business
turnover 350,638,619.01 344,811,390.03
Other business income 19,306,694.88 20,830,921.76
Operation cost 299,542,925.11 308,955,651.23
Incl. Main business cost 290,238,006.17 302,846,617.1979
（3） Distribution on business categories:
（4） Distribution on territories
（5） Incomes from top 5 clients were totaled to RMB157,122,636.52, account
for 41.47% of the total sales income.
（39）Business tax and surcharge
Details of business tax and surcharges:
Other business cost 9,304,918.94 6,109,034.04
Items
Occurred current term
Amount occurred in same period last
year
Turnover Operation cost Turnover Operation cost
Glass wall products 270,197,494.12 224,497,265.57 228,675,704.83 203,549,506.38
Complex aluminium boards
and single profiled plates 62,491,587.45 44,922,507.95 66,799,662.94 53,731,546.84
Profiled aluminium products
and coloured profiled plates 5,665,718.84 6,172,138.90 15,766,289.65 15,592,924.79
Semi-conductor lighting
products 3,190,957.26 6,836,057.15 11,457,437.89 10,700,803.43
Screen door of metro station 12,073,302.73 10,215,705.86 22,988,985.44 19,644,820.47
Others 16,326,253.49 6,899,249.68 19,954,231.02 5,736,049.30
Total 369,945,313.89 299,542,925.11 365,642,311.79 308,955,651.23
On territories
Occurred current term Amount occurred in same period last year
Turnover Operation cost Turnover Operation cost
Home sales 323,232,454.01 270,341,906.47 327,989,676.19 275,734,500.73
Export 46,712,859.88 29,201,018.64 37,652,635.60 33,221,150.50
Total 369,945,313.89 299,542,925.11 365,642,311.79 308,955,651.23
Class of tax Occurred current term
Amount occurred in
same period last year
Business tax 8,113,975.10 7,728,529.35
City maintenance an 632,099.14 525,352.6280
（40）Financial expenses
Financial expenses:
Note: Financial expenses decreased by 27.20% from the same period of last year,
which was caused by decreasing of interest rate and increasing of bank savings
interest.
（2） Asset impairment loss
d construction tax
Education surtax 299,737.40 264,831.82
Others 721,519.31 372,914.84
Total 9,767,330.95 8,891,628.63
Items Occurred current term Amount occurred in same
period last year
Bad debt losses 3,759,400.66 1,187,474.33
Total 3,759,400.66 1,187,474.33
Items Occurred current term Amount occurred in same period last year
Interest expense 11,684,820.18
13,004,661.93
Less: Incoming
interests
-2,945,262.09
-1,082,172.36
Exchange loss 157,988.00
1,347,859.07
Less: Exchange gain -4,894.80
-208,288.83
Commission charges
and others
871,895.74
351,189.40
Total 9,764,547.03
13,413,249.2181
（41）Income from change of fair value
（42）Investment income
Investment income categorized by resources:
（43）Non-business income
Details of Non-business incomes:
Source of income from fluctuation of
fair value Occurred current term
Amount occurred in
same period last year
Investment properties on fair value 2,385,370.72 -3,431,277.89
Fluctuation income from aluminum
future contracts 1,130,025.80 -263,700.00
Total 3,515,396.52 -3,694,977.89
Sources of investment gains
Occurred current
term
Amount occurred in
same period last year
Gains from holding and disposal of transactional
financial assets, and financial assets appointed to be
measured at fair value and fluctuation recorded to
current income account 320,869.49
Gains from disposal of sellable financial assets 16,614,079.31 30,381,599.57
Others 308,534.09 85,128.79
Total 16,922,613.40 30,787,597.85
Items Occurred current term
Amount occurred in
same period last year
Gains from disposal of noncurrent
assets 2,580.00 146,558.54
Incl. Gains from disposal of
fixed assets 2,580.00 146,558.54
Gains from debt
reorganization 211,729.61 246,381.72
Penalty income 59,221.00 40,900.96
Government subsidies 590,000.00 300,000.00
VAT offset and transferred in 3,594.08 12,932.09
Income from penalties 200082
（44）Non-operational expenditure
Non-operational expenditures are detailed as:
（45）Income tax
Composition of income tax:
（46）Appendix of Cash Flow Statement
1. Net profit adjusted to cash flow of business operation
Payable account not able to
be paid 9,672.69 75,689.90
Write back of predicted debts
Others 537,778.50 244,436.36
Total 1,416,575.88 1,066,899.57
Items Occurred current term
Amount occurred in
same period last year
Total of loss from disposal of
non-current assets 168,452.62 142,504.22
Incl. Loss from disposal of fixed
assets 168,452.62 142,504.22
Losses from debt restructuring 75,911.82 278,486.05
Penalty paid 2,965.58 518,621.28
Outgoing donations 0.00 1,243,000.00
Penalties for breach of faith 0.00
VAT income transferred out 1,743.59 13,666.86
Others 35,061.69 412,069.50
Total 284,135.30 2,608,347.91
Items Occurred current term
Amount occurred in
same period last year
Income tax of
current term 275,925.76
Deferred income tax -892,969.03 -24,852.98
Total -892,969.03 251,072.7883
Supplementary Info.
Occurred current
term
Amount occurred in
same period last year
1.Net profit adjusted to cash flow of operation:
Net profit 27,043,148.61 19,760,681.70
Plus: Asset impairment provision 3,759,400.66 1,187,474.33
Depreciation of fixed assets 10,712,455.50 4,317,183.21
Amortizing of intangible assets 960,918.84 1,127,330.35
Amortizing of long-term expenses
Loss from disposal of fixed assets, intangible assets,
and other long-term assets (“-“ for gains) 147,240.06 52,718.85
Loss from fixed asset discard (“-“ for gains) 1,550.00 46,582.87
Loss from fluctuation of fair value (“-“ for gains) -3,515,396.52 2,418,666.89
Financial expenses (“-“ for gains) 10,843,491.21 13,234,208.60
Investment loss (“-“ for gains) -16,922,613.40 -30,787,597.85
Decrease of deferred income tax asset (“-“ for increase) -922,896.29 -24,852.98
Increase deferred income tax asset (“-“ for decrease) -890,743.04 -8,654,915.22
Decrease of inventory (“-“ for increase) -45,388,387.73 -37,625,731.62
Decrease of operational receivable items (“-“ for
increase) 41,560,785.86 -22,636,045.01
Increase of operational payable items (“-“ for decrease) 17,640,522.11 17,887,448.15
Others
Cash flow generated by business operation, net 45,029,475.86 -39,696,847.73
2. Major investment and financing activities not
involving in cash flow
Liabilities converted to capital
Convertible bond expire in 1 year
Fixed assets leased through financing
3. Change of cash and cash equivalents
Balance of cash at end of year 173,845,934.26 117,640,829.12
Less: Balance of cash at beginning of year 112,333,106.38 171,607,741.2484
（1） Cash and cash equivalents
（2） Main other cash items related to business operation received:
(4) Main other cash items related to business operation paid:
Plus: Balance of cash equivalents at end of term
Less: Balance of cash equivalents at beginning of term
Net increasing of cash and cash equivalents 61,512,827.88 -53,966,912.12
Items
Occurred current
term
Amount occurred in
same period last year
I. Cash 173,845,934.29 117,640,829.12
Incl: Cash in stock 59,076.93 109,740.19
Bank savings could be used at any time 173,786,857.36 117,531,088.93
Other monetary capital could be used at any time
II. Cash equivalents
Incl. Bond investment due in 3 months
III. Balance of cash and cash equivalents at end of term 173,845,934.29 117,640,829.12
Incl. Cash and cash equivalents in the parent company or
internal subsidies with limitation to use
Items Occurred current term
Non-business income received 414,753.52
Operational trade received 2,867,353.99
Deposit retrieved 12,124,998.00
Interest income received 2,500,365.59
Government subsidy received 2,487,000.00
Others 15,846,760.47
Total 36,241,231.57
Items Jan-Jun 2009
Administrative fees paid 8,212,409.7685
Notes to financial statements of the parent company
（47）Account receivable
(1) Account receivable is categorized as:
Note 1: The Company treats receivable accounts with non-related parties over
RMB8 million as significant individual accounts. No evidence of individual
impairment was found after testing on such accounts. Thus bad debt provisions are
provided according to their ages.
Note 2: The Company judges receivable accounts due from non-related parties
Sales expenses paid 5,405,087.64
Operational deposit paid 10,832,180.00
Others 13,916,291.84
Total 38,365,969.24
Categories
Balance of book value at end of term
Amount Portion %
Bad debt
provision Net amount
Single receivable account with mass
amount 11,792,264.63 72.39% 353,767.94 11,438,496.69
No major amount individually but with
great risk after combined with others with
similar credit risk 5,460.38 0.03% 2,730.19 2,730.19
Other non-material receivables 4,491,631.36 27.57% 514,260.61 3,977,370.75
Total 16,289,356.37 100.00% 870,758.73 15,418,597.64
Categories
Balance of book value at beginning of term
Amount Portion %
Bad debt
provision Net amount
Single receivable account with mass
amount 14,701,775.02 70.31% 441,053.25 14,260,721.77
No major amount individually but with
great risk after combined with others with
similar credit risk 5,460.38 0.03% 2,730.19 2,730.19
Other non-material receivables 6,201,840.57 29.66% 331,947.32 5,869,893.25
Total 20,909,075.97 100% 775,730.76 20,133,345.2186
and over three years as great risk.
(2) Age analysis of receivable accounts:
(3) No receivable due from shareholders with 5% or over of the Company’s
shares at the end of report term
(4) Receivables from top 3 clients are totaled to RMB16,286,895.99, account for
99.98% of the total of receivable accounts.
（48）Other account receivable
(1) Other account receivable is categories as the followings:
Age
Balance of book value at end of term
Amount Portion % Bad debt provision Net amount
within 1 yr 12,188,379.63 74.82% 365,651.39 11,822,728.24
1-2 yrs (included) 3,631,388.76 22.29% 363,138.88 3,268,249.88
2-3 yrs (included) 464,127.60 2.85% 139,238.28 324,889.32
Over 3 yrs 5,460.38 0.03% 2,730.19 2,730.19
Total 16,289,356.37 100.00% 870,758.74 15,418,597.63
Age
Balance of book value at beginning of term
Amount Portion % Bad debt provision Net amount
within 1 yr 18,819,442.69 90% 564,583.28 18,254,859.41
1-2 yrs (included) 2,084,172.90 9.97% 208,417.29 1,875,755.61
2-3 yrs (included)
Over 3 yrs 5,460.38 0.03% 2,730.19 2,730.19
Total 20,909,075.97 100% 775,730.76 20,133,345.21
Categories
Balance of book value at end of term
Amount
Proportion
%
Bad debt
provision Net amount
Single other receivable account with mass
amount
No major amount individually but with
great risk after combined with others with
similar credit risk 1,148,592.21 0.65% 600,819.11 547,773.1087
Note 1: The Company treats other receivable accounts with non-related parties
over RMB8 million as significant individual accounts. No evidence of individual
impairment was found after testing on such accounts. Thus bad debt provisions are
provided according to their ages.
Note 2: The Company judges other receivable accounts due from non-related
parties and over three years as great risk.
（2） Age analyzing of other account receivable
Other non-material other receivables 174,560,969.88 99.35% 10,802.99 174,550,166.89
Total 175,709,562.09 100.00% 611,622.10 175,097,939.99
Categories
Balance of book value at beginning of term
Amount
Proportion
%
Bad debt
provision Net amount
Single other receivable account with mass
amount
No major amount individually but with
great risk after combined with others with
similar credit risk 1,085,421.00 0.54 569,233.50 516,187.50
Other non-material other receivables 199,593,600.14 99.46 28,251.11 199,565,349.03
Total 200,679,021.14 100 597,484.61 200,081,536.53
Age
Balance of book value at end of term
Amount Portion %
Bad debt
provision Net amount
within 1 year 174,546,969.88 99.34% 8,602.99 174,538,366.89
1-2 yrs (included) 10,000.00 0.01% 1,000.00 9,000.00
2-3 yrs (included) 4,000.00 0.00% 1,200.00 2,800.00
Over 3 years 1,148,592.21 0.65% 600,819.11 547,773.10
Total 175,709,562.09 100.00% 611,622.10 175,097,939.99
Age
Balance of book value at beginning of term
Amount Portion %
Bad debt
provision Net amount
within 1 year 139,129,359.92 69.33% 21,133.99 139,108,225.9388
(3) No other receivable due from shareholders with 5% or over of the Company’s
shares at the end of report term
(4) Receivables from top 5 clients are totaled to RMB174,260,203.48, account for
99.18% of the total of receivable accounts.
（49）Long-term share equity investment
(1) Long-term equity investments are categorized as the followings:
（2） Long-term equity investment on cost basis
1-2 yrs (included) 60,462,240.22 30.13% 6,517.12 60,455,723.10
2-3 yrs (included) 2,000.00 600 1,400.00
Over 3 years 1,085,421.00 0.54% 569,233.50 516,187.50
Total 200,679,021.14 100% 597,484.61 200,081,536.53
Items
Balance of book
value at beginning
of term
Increased this
term
Decreased this
term
Balance of book
value at end of
term
Investment on
subsidiaries 363,067,033.85 363,067,033.85
Investment in other
enterprises 2,710,645.90 2,710,645.90
Total 365,777,679.75 2,710,645.90 363,067,033.85
Less: Long-term
investment
impairment
provision 32,353,829.15 2,310,645.90 30,043,183.25
Net amount 333,423,850.60 400,000.00 333,023,850.60
Name of the
Companies
Balance of book
value at beginning
of term
Balance of book
value at beginning
of term
Increased
this term
Decreased this
term
Balance of book
value at end of
term
Share
proportion
% Voting rights %
Fangda Decoration 95,000,000.00 95,000,000.00 95,000,000.00 95% 95%
Fangda Aluminium 19,800,000.00 19,800,000.00 19,800,000.00 99% 99%
Fangda Yide Co. 19,907,760.00 19,907,760.00 19,907,760.00 75% 75%
HK Junjia 10,600.00 10,600.00 10,600.00 100% 100%
Fangda Automatic 45,000,000.00 45,000,000.00 45,000,000.00 90% 90%
Fangda New Material 74,496,600.00 74,496,600.00 74,496,600.00 75% 75%89
Note: Long-term equity investment decreased by RMB2,710,645.90 in the
report term, which was caused by neutralizing of long-term investment and
impairment provisions of Chongqing Fangda, and completion of share equity
relocation scheme of Tianjin Global Magnetic Card Co., Ltd. and transferred to
sellable financial assets.
（3） Long-term equity investment impairment
（50）Turnover / cost
(1) Details of business turnover and costs:
Shenyang Fangda 109,560,000.00 108,852,073.85 108,852,073.85 64.58% 64.58%
Chongqing Fangda 2,310,645.90 2,310,645.90 2,310,645.90
Tianjin Global
Magnetic Card Co.,
Ltd. 400,000.00 400,000.00 400,000.00
Total 528,260,685.13 365,777,679.75 2,710,645.90 363,067,033.85
Name of the
Companies
Balance of book
value at beginning
of term
Provided this
term
Decreased this term
Balance of book value
at end of term
Written
back Transferred
Chongqing Fangda 2,310,645.90 2,310,645.90
Fangda Aluminium 10,124,823.25 10,124,823.25
Fangda Yide Co. 19,907,760.00 19,907,760.00
HK Junjia 10,600.00 10,600.00
Total 32,353,829.15 2,310,645.90 30,043,183.2590
(2) Distribution
on products and
businesses
（51）Investment income
Investment income categorized by resources:
Categories
Occurred current term
Amount occurred in same period last
year
Turnover Operation cost Turnover Operation cost
Sales and installation of
metro screen door 338,559.83 211,937.64 14,624,299.91 14,359,846.35
Rental income 14,049,748.27 1,239,733.22 12,950,086.15 1,331,086.41
Others 3,000,869.83 3,018,678.62 2,330,196.87 2,320,454.39
Total 17,409,790.44 4,470,349.48 29,904,582.93 18,011,387.15
Sources of investment gains Occurred current term
Amount occurred in
same period last year
Gains from long-term equity
investment
Others 27,945.21
Total 27,945.21
Items Occurred current term
Amount occurred in
same period last year
Turnover
17,409,790.44 29,904,582.93
Incl. Main business
turnover
338,559.83 14,624,299.91
Other business income
17,071,230.61 15,280,283.02
Operation cost
4,470,349.48 18,011,387.15
Incl. Main business cost
211,937.64 14,359,846.35
Other business cost
4,258,411.84 3,651,540.8091
I. Related parties and transactions
(1) Details of related parties
Details of subsidiaries and affiliates are available with Note VII and VIII.
(2) Related transactions
① Guarantees practically provided by the Company to subsidiaries
As of June 30, 2009
② Guarantees practically provided by subsidiaries to the Company
Name of
companies
Reg.
Add. Major business
Registere
d capital
(RMB0’0
00)
Organizatio
n code
Share
proportion
%
Portion of voting
rights
Shenzhen
Banglin
Technical
Development
Co., Ltd.
Shenzh
en
Investment in industry,
developing of electronic
tech, technical consulting,
domestic trade, material
supply
3,000.00 72984005-
5 10.08% 10.08%
Shenzhen
Shilihe
Investment Co.,
Ltd.
Shenzh
en Industrial investment 1,978.10 72984450-
7 6.58% 6.58%
Hong Kong
Jikang Co., Ltd. HK Industrial investment N/A 4.45% 4.45%
Total 24.72％ 24.72％
Name of companies Target of
guarantee
Amount
guaranteed Illegal guarantee Guaranteed amount on net
asset %
Fangda New Material Loans 77,000,000.00 13.16%
Fangda Decoration Loans 30,000,000.00 5.13%
Fangda Decoration Guarantee
letter 75,033,000.00 12.82%
Fangda Decoration Note 29,805,800.00 5.09%
Fangda New Material Note 71,816,800.00 12.27%
Fangda Automatic Guarantee
letter 72,110,000.00 12.32%
Total 330,765,600.00 56.52%92
As of June 30, 2009
③ Guarantees practically provided between the subsidiaries
As of June 30, 2009
II. Contingent issues
AS of June 30, 2009, external guarantees provided were between the parent
company and subsidiaries, please see Note X (II).
Other than the above contingent issues, as of June 30, 2009, the Company has no
major contingent issues to be disclosed.
III. Commitments
Issues regarding pledging of self-owned properties for loans are available with
Note IX (I)18, 19.
Inter-guarantees provided for application of bank credit between the Company
and subsidiaries are:
1. As of June 30, 2009, guarantees provided by the Company to subsidiaries for
bank credits:
2. As of June 30, 2009, Guarantees provided by subsidiaries to the Company
are:
Name of companies Target of guarantee Amount guaranteed
Fangda Decoration, Fangda
Automatic, Fangda New Material Loans 160,000,000.00
Total 160,000,000.00
Provider Acceptor Target of guarantee Amount guaranteed
Fangda Aluminium Fangda New Material Short-term loans 5,000,000.00
Total 5,000,000.00
Name of companies Amount Note
Fangda New Material 198,000,000.00
For actual situation please see
Fangda Decoration 252,090,000.00Note XII. (II)1
Fangda Automatic 233,000,000.00
Total 683,090,000.0093
3. Fangda Aluminum provided guarantee to Fangda New Material for RMB20
million of bank credit. Actual situations is available with Note XII. (II)3.
No major commitment issues other than the above need to be disclosed.
IV. (VIII) Other significant issues
(I) Unsolved lawsuit
As of June 30, 2009, unsolved lawsuits of subsidiaries are:
(1) On February 29, 2004, Fangda Decoration appealed to Beijing No.2 Middle
Court against Beijing Jiaxuan Real-estate Development Co., Ltd. for the outstanding
debt of RMB14,979,345.88 and interests. As of June 30, 2009, this case is still under
trial.
(2) On April 30, 2007, Fangda Decoration appealed to Heilongjiang Ha’erbin
Middle Court against Heilongjiang Beiya Real-estate Development Co., Ltd. For the
outstanding debt of RMB10,954,157.88 and interests. As of June 30, 2009, this case
is still under trial.
(3) On July 21, 2008, Fangda Decoration appealed to Shenzhen Longgang
Peoples’ Court against Shenzhen Zhilianjia Industry Co., Ltd. about the payment of
RMB1,150,000.00 and interest of RMB50,000.00 due for curtain wall project of
Bihu Crown Holiday Hotel, as of June 30, 2009, this case was still under trial.
(4) On June 24, 2008, Jiangxi Fangda Aluminum appealed to Nanchang
Donghu People’s Court against Hetai (Jiangxi) Property Co., Ltd. about the payment
Name of companies Amount Note
- -
For actual situation please see
Fangda Decoration, Fangda Automatic, Fangda New Note XII. (II)2
Material 210,000,000.00
Total 210,000,000.00
NO. Prosecutor Defender Date of sue Target amount
（1） Fangda Decoration Beijing Jiaxuan Property Development Co.,
Ltd. 2004.02.29 14,979,345.88
（2） Fangda Decoration Heilongjiang Beiya Property Development
Co., Ltd. 2007.04.30 10,954,157.88
（3） Fangda Decoration Shenzhen Zhilianjia Industry Co., Ltd. 2008.07.21 1,200,000.00
（4） Fangda Aluminium Hetai (Jiangxi) Property Co., Ltd. 2008.06.24 1,698,788.52
Total 28,832,292.2894
of RMB1,493,650.55 and penalty of RMB205,137.97 for construction project. As of
June 30, 2009, this case was still under trial.
(II) Completed lawsuits
As of June 30, 2009, receivables judged by the courts or arbitrating
organizations are:
Note:
(III) Leasing
No. Prosecutor Defender Judged amount
Retrieved
amount till end
of year
Book balance at
end of year
Bad debt
provisions
provided till end
of year
（1） Fangda
Decoration
Shanxi Taiyuan Police
Station, Shanxi No.2
Construction Co.
11,506,930.98 5,272,450.00 6,826,820.00 3,413,410.00
（2） Fangda
Decoration
Shenzhen Department
Store Building Co., Ltd. 7,866,847.00 4,675,769.64 3,215,277.60 1,607,638.80
（3） Fangda
Decoration
Guangzhou Yian Plaza
Property Co., Ltd. 5,621,329.63 2,186,676.41 3,523,343.49 1,761,671.75
（4） Fangda
Decoration
Zhongshan Jianlian
Property Co., Ltd. 5,789,420.54 3,717,577.00 1,851,843.54 925,921.77
（5） Fangda
Decoration
Taiyuan Guidu
Department Store Ltd. 1,024,867.18 210,000.00 1,010,867.18 505,433.59
（6） Fangda
Decoration
Shenzhen Zhilianjia
Industry Co., Ltd. 6,580,191.45 6,696,866.48 217,066.62 108,533.31
（7） Fangda
Decoration
Dalian Hongjin World
Trade Center Ltd. 19,194,665.60 19,194,665.60 5,929,438.53
（8） Fangda Yide Co. Jiansu Jianwei Curtain
Wall Co., Ltd. 1,339,697.57 1,334,101.48 667,050.74
（9） Fangda Yide Co. Fuzhou Mingang
Decoration Co., Ltd. 518,943.60 518,943.60 259,471.80
（10） Fangda Yide Co.
Guangdong No.5
Construction Co., Ltd.
Nanning Branch
854,597.15 854,597.15 256,379.15
（11） Fangda Yide Co.
Qinghuangdao Bohai
Aluminium Curtain Wall
Co., Ltd.
1,029,379.99 500,000.00 537,577.48 268,788.74
（12） Fangda Guoke Shenzhen Xiangyuanda
Industry Co., Ltd. 528,509.15 532,290.48 230,421.28
（13） Fangda Guoke
Shenzhen Longgang
Pinghu Wuxiantong
Electronics Factory
580,000.00 85,000.00 516,964.11 51,696.41
Total 62,435,379.84 23,344,339.53 40,134,358.33 15,985,855.8795
As of June 30, 2009, information about leasing properties is available with
Note IX(I)-10.
V. Supplementary Info.
(I) Non-recurring gain/loss
According to document 公告[2008]43 号issued by China Securities
Regulatory Commission, the non-recurring gain/loss are as the followings:
(II) Net income on asset and earnings per share
According to “Information Disclosure Rules No.9 – Disclosing of net income
on asset and earnings per share (revised 2007)”, and “Information Disclosure Q&A
for Listed Companies No.1 – non-recurring gain/loss (revised 2008), the Company
accounts for the net income on asset and earnings per share as the following:
1. Calculating results
Non-recurring gain and loss items Occurred current
term
Amount occurred in
same period last
year
Gain/loss of non-current assets -165,872.62 4,054.32
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.
590,000.00 300,000.00
Gain/loss from debt reorganization 135,817.79 -32,104.33
Gain/loss from change of fair value of transactional 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
16,614,079.31 30,523,897.85
Gain/loss from commissioned loans 308,534.09
Gain/loss from change of fair value of investment property
measured at fair value in follow-up measurement 2,385,370.72 -3,431,277.89
Other non-business income and expenditures other than the above 572,495.41 -1,813,398.33
Influenced amount of minority shareholders’ equity -7,684.99 -29,028.42
Total 20,432,739.71 25,522,143.20
Profit of the report period
Currentterm
Net earnings / asset Earnings per share
On full
amortizin
g basis
weighted
average
Basic gains
per share
Diluted gains
per share
Net profit attributable to common shareholders of the
Company 5.14% 5.25% 0.0705 0.070596
2. Calculation formula of earnings per share
Net profit attributable to the common owners of the PLC
after deducting of non-recurring gains/losses 1.65% 1.68% 0.0226 0.0226
Profit of the report period
Same period of lastterm
Net earnings / asset Earnings per share
On full
amortizin
g basis
weighted
average
Basic gains
per share
Diluted gains
per share
Net profit attributable to common shareholders of the
Company 3.72% 3.54% 0.0487 0.0487
Net profit attributable to the common owners of the PLC
after deducting of non-recurring gains/losses -0.84% -0.80% -0.0111 -0.0111
Items No. Current term Same period of
last term
Net profit attributable to common shareholders of
the Company 1 30,076,634.28 20,798,839.29
Non-recurring gain/loss attributable to the net profit
of common shareholders of the parent company after
deducting of income tax influences
2 29,183,665.25 21,049,912.07
Net profit deducted non-recurring gain/loss and
attributable to the common shareholders 3=1-2 9,643,894.57 -4,723,303.91
Total of shares at beginning of year 4 426,786,359 387,987,600
Increasing of shares by capitalizing common
reserves or dividend distribution 5 38,798,759
Increasing of shares by issuing of new shares or
converting of debt to shares 6
Number of months from the next month of new
share issuing or converting of debt to shares to the
end of report term
7
Shares decreased in the report term by repurchasing
or share reducing 8
Number of months from the next month of share
decreasing to the end of report term 9
Number of months in the report term 10 6 6
Weighted average of common shares issued to the
outside 11=4+5+6×7÷10-8×9÷10 426,786,359 426,786,359
Basic earning per share (I) 12=1÷11 0.0705 0.0487
Basic earning per share (II) 13=3÷11 0.0226 -0.011197
VI. Approval of the financial statements
This financial statement was approved by the Board on July 15, 2009.
Items No. Current term Same period of
last term
Diluting potential common share interests
recognized as expenses 14
Income tax rate 15
Transformation fees 16
Share increased by option certificate, future option 17
Diluted earning per share (I) 18=[1+(14-16)×(1-
15)]÷(11+17) 0.0705 0.0487
Diluted earning per share (II) 19=[3+(14-16)×(1-
15)]÷(11+17) 0.0226 -0.0111
