方大集团股份有限公司
CHINA FANGDA GROUP CO., LTD.
Interim Report 2010
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 21th meeting of the 5th term of
Board. Mr. Dong Likun, 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
. 一、公司基本情况.............................................................................. 5
. 二、股本变动和主要股东持股情况.................................................. 9
. 三、董事、监事、高级管理人员情况..............................................9
. 四、董事会报告................................................................................ 10
. 五、重要事项.................................................................................... 23
. 六、财务报告.................................................................................... 22
. 七、备查文件.................................................................................... 224
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
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 Interim Report is available:
http://www.fangda.com
This Interim 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 indicies
Ended this report
term Ended previous year Increase/decrease
(%)
Not
adjusted Adjusted Adjusted
Gross Assets 1,881,201,955.11 1,482,814,012.11 26.87%
Owners’ equity to shareholders of the
listed company 984,993,051.24 623,295,593.57 58.03%
Share capital 504,606,604.00 426,786,359.00 18.23%
Net asset per share attributable to the
shareholders of the listed company
(Yuan/share)
1.95 1.46 33.56%
Report term
(Jan-Jun) Same period last year Increase/decrease
(%)
Not
adjusted Adjusted Adjusted
Turnover 423,379,762.74 369,945,313.89 14.44%
Operation profit 23,172,085.73 25,017,739.00 -7.38%
Total profit 36,785,520.86 26,150,179.58 40.67%
Net profit attributable to the
shareholders of the listed company 33,608,581.42 30,076,634.28 11.74%
Net profit after deducting of
non-recurring gain/loss attributable to
the shareholders of the listed company
13,165,642.02 9,643,894.57 36.52%
Basic earnings per share (Yuan/share) 0.074 0.066 12.12%
Diluted earnings per share (Yuan/share) 0.074 0.066 12.12%
Net return on equity (%) 5.28% 5.22% 0.06%
Cash flow generated by business
operation, net -39,527,323.06 45,029,475.86 -187.78%
Net Cash flow per share generated by
business operation (yuan/share) -0.08 0.11 -172.73%
(2) Non-recurring gain and loss items
Non-recurring gain and loss items Amount
Gain/loss of non-current assets 10,727,318.70
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.
3,673,500.00
Gain/loss from change of fair value of investment property measured at fair value
in follow-up measurement 6,553,456.32
Other non-business income and expenditures other than the above -787,383.57
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
3,176,516.97
Influenced amount of minority shareholders’ equity -31,051.22
Influenced amount of income tax -2,869,417.80
Total 20,442,939.40
(3) Impact on the net profit and net asset due to adjustment under IAS6
(In RMB Yuan)
Domestic Accounting Standard International Accounting Standard
Net profit attributable to the
shareholders of the listed
company
33,608,581.42 33,608,581.42
Owners ’ equity to
shareholders of the listed
company
984,993,051.24 989,756,449.48
Statement about the diversity Differences of owners’ equity were the part of interest of previous
years being capitalized according to the new accounting standard.
(4) Net income/asset ratio and earnings per share
Items
Net return on
equity (%)
Earnings per share
(yuan/share)
weighted
average
Basic
earnings per
share
Diluted
earnings per
share
Net profit attributable to the shareholders of
the listed company
5.28% 0.074 0.074
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of the
listed company 2.07% 0.029 0.0297
II. Change in Capital Share and Major
Shareholders
(I) Change of Capital Share
1. Causation of the change
In the report term, common reserve capitalizing plan for year 2009 was implemented:
basing on the total of 426,786,359 capital shares, 0.7 bonus share was given to each
10 shares of the entire shareholders, namely the capital shares have been increased
by 29,875,045 shares. Among them, 15,222,968 were allotted to A shareholders at 0.7
to 10 basis; 14,652,077 shares were allotted to B shareholders at 0.7 to 10 basis
as well. The capital shares of the Company was increased up to 456,661,404 shares
after completion of this capitalization.
In the report term, the Company issued 47.9452 million A shares privately, and raised
RMB349.99996 million. Upon completion of this private issue, the capital shares have
increased to 504,606,604 shares including 280,639,145 A shares and 223,967,459 B
shares.
2. Approval upon the change
The common reserve capitalizing plan was approved at the Shareholders’ Annual
Meeting 2009.
The proposed A share private offering plan was examined and passed at the 6th meeting
of the 5th term of Board held on March 26, 2009. The 1st revise was passed at
the 9th meeting of the 5th term of Board held on July 30, 2009, and was approved
by the 1st provisional shareholders’ meeting 2009 held on August 17, 2009, on which
the Board was authorized to handle the issues related to the private offering.
The second revise was passed at the 16th meeting of the 5th term of Board held
on March 19, 2010. On May 26, 2010, CSRC issued “The approval for the application
of China Fangda Group Co., Ltd. for private offering” (证监许可[2010]720).8
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
65,073 0.02% 47,945,200 4,555 47,949,755 48,014,828 9.52%
1. State-owned
shares
2. State-owned
legal person
shares
3. Other
domestic shares 47,945,200 47,945,200 47,945,200 9.50%
Incl.
Non-government
domestic legal
person shares
18,200,000 18,200,000 18,200,000 3.61%
Domestic
natural person
shares
29,745,200 29,745,200 29,745,200 5.89%
4. Share held by
foreign investors
Incl. Shares
held by foreign
legal persons
Foreign
natural person
shares
5. Management
shares 65,073 0.02% 4,555 4,555 69,628 0.01%
II. Shares with
unconditional
subscription
426,721,286 99.98% 29,870,490 29,870,490 456,591,776 90.48%
1. Common
shares in RMB 426,721,286 99.98% 29,870,490 29,870,490 456,591,776 90.48%
2. Foreign
shares in
domestic market
217,405,903 50.94% 15,218,413 15,218,413 232,624,316 46.10%
3. Foreign
shares in
overseas market
209,315,383 49.04% 14,652,077 14,652,077 223,967,460 44.38%
4. Others
III. Total of
capital shares 426,786,359 100.00% 47,945,200 29,875,045 77,820,245 504,606,604 100.00%
4. Re-registration of the shares
The newly added A shares have been transferred directly to the accounts of A share
holders on April 6, 2010, while the newly added B shares have been transferred
directly into the accounts of B share holders on April 8, 2010.
Registration procedures of the newly offered A shares have been completed with China
Securities Depository & Clearing Corporation Ltd. on June 21, 2010.9
5. Shareholding status at the end of report term (as of June 30, 2010,
in shares)
Total of shareholders 62,303 (including 40,076 A-share holders, and 22,227 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.
Domestic
non-state-owned legal
person
9.09% 45,849,515 0 0
Shenzhen Shilihe Investment Co.,
Ltd.
Domestic
non-state-owned legal
person
3.98% 20,067,328 0 0
Hong Kong Onforce International
Co., Ltd. Overseas legal person 1.98% 10,000,000 0 0
China Construction Bank – Shangtou
Morgan Small-middle size stock
investment fund
Domestic
non-state-owned legal
person
0.81% 4,096,669 0 N/A
Bank of China – Haifutong Stock &
Securities Investment Fund
Domestic
non-state-owned legal
person
0.79% 4,009,807 0 N/A
China Industrial & Commercial
Bank – Galaxy Yintai Financing
Investment Fund
Domestic
non-state-owned legal
person
0.59% 2,999,999 0 N/A
China Industrial & Commercial
Bank – Nuo’an Stock Investment
Fund
Domestic
non-state-owned legal
person
0.50% 2,540,955 0 N/A
Qian Weimin Domestic natural
person 0.48% 2,400,000 0 N/A
Cao Yifan Domestic natural
person 0.42% 2,113,910 0 N/A
NATWEST SECURITIES HONG
KONG LIMITED
Overseas natural
person 0.36% 1,797,000 0 N/A
Top 10 holders of unconditional shares
Name of the shareholder Unconditional shares Category of shares
Shenzhen Banglin Technologies Development Co.,
Ltd. 45,849,515 RMB common shares
Shenzhen Shilihe Investment Co., Ltd. 20,067,328 RMB common shares
Hong Kong Onforce International Co., Ltd. 10,000,000 Foreign shares placed in domestic
exchange
China Construction Bank – Shangtou Morgan
Small-middle size stock investment fund 4,096,669 RMB common shares
Bank of China – Haifutong Stock & Securities
Investment Fund 4,009,807 RMB common shares
China Industrial & Commercial Bank – Galaxy
Yintai Financing Investment Fund 2,999,999 RMB common shares
China Industrial & Commercial Bank – Nuo’an
Stock Investment Fund 2,540,955 RMB common shares
Qian Weimin 2,400,000 RMB common shares
Cao Yifan 2,113,910 Foreign shares placed in domestic
exchange
NATWEST SECURITIES HONG KONG
LIMITED 1,797,000 Foreign shares placed in domestic
exchange
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
associated. As for the other holders of current shares, the
Company has not been informed any situation of related
parties or action in concert parties.
6. Influences of the capital share changing on the financial indices of10
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: For the capital shares have increased from
426,786,359 to 456,661,404 due to implementing of common reserve
capitalizing for year 2009, the earnings per share and diluted earnings
per share of previous year have decreased from RMB0.071 to RMB0.066.
7. None of the controlling shareholder or substantial dominator of the
Company has changed during the report term.11
III. Particulars about the Directors, Supervisors and Senior
Executives
1. Changes in Shares Held by Directors, Supervisors and Senior
Executives
Name Position
Shares held
at the
beginning of
term
Shares
held at
the end of
term
Changed in
the report
term
Cause of
change
Xiong
Jianming
Chairman,
President
64,156 68,647 4,491
Capitalizing of
common
Wang reserves
Shengguo
Director, Vice
president
22,608 24,191 1,583
Xiong
Jianwei
Director 0 0
Zhou
Zhigang
Director,
Secretary of
the Board
0 0
Shao
Hanqing
Independent
Director
0 0
Guo
Jinlong
Independent
Director
0 0
Dong
Likun
Independent
Director
0 0
Yu Guoan Host of the
Supervisory
Committee
0 0
Song
Wenqing
Supervisor 0 0
Zheng Hua Supervisor 0 0
Yang
Xiaozhua
n
Vice President 0 0
Lin Kebin
Vice
President, CFO
0 0
The Company has not implemented any share equity motivation scheme, thus none of
the directors, supervisors or executives is holding share options or granted shares12
with restriction conditions.
2. No change occurred to the directors, supervisors and senior
executives in the current term.
3. The Shareholders’ Annual Meeting 2009 was held in the report term.13
IV. Report of the Board
1. Financial Position:
In RMB
Items Jan-Jun 2010 Jan-Jun 2009
Movement
%
Turnover
423,379,762.7
4
369,945,313.8
9 14.44%
Sales expense 12,733,055.35 10,902,148.67 16.79%
Administrative expense 39,721,901.51 31,629,232.39 25.59%
Financial expenses 10,189,597.13 9,764,547.03 4.35%
Operation profit 23,172,085.73 25,017,739.00 -7.38%
Net profit attributable to the
shareholders of the listed company
33,608,581.42 30,076,634.28
11.74%
Cash flow generated by business
operation, net
-39,527,323.0
6
45,029,475.86
-187.78%
Net increasing of cash and cash
equivalents
288,025,892.8
7
61,512,827.88
368.23%
Items June 30, 2010
December 31,
2009
Movement
%
Gross Assets
1,881,201,955
.11
1,482,814,012
.11 26.87%
Owners’ equity to shareholders of the
listed company
984,993,051.2
4
623,295,593.5
7 58.03%
Major causes of the above movements:
(1) The Company has achieved 14.44% of increase in turnover comparing with the same
period of last year, which was caused by growth of curtain wall and PSD business
by 8.41% and 423.25% respectively.
(2) Periodic expense has increased by 6.16%, which was caused by increasing of
business volume.
(3) Operational profit has decreased by 7.38%, which was because the
RMB16,614,079.31 of income from disposal of disposable financial assets by
Fangda Decoration in the same period of last year.
(4) Net cash flow of business operation has decreased due to great amount of initial
capital inputted to new projects.
(5) Net cash and cash equivalents have increased significantly, which was caused
by private issuing of 47.9452 million A shares and raised capital of RMB349.99996
million.14
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, photo-electric
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 including energy-saving curtain wall, compound aluminum
board, single layer profiled aluminum board, and PSD are the major source of business
turnover and net profit of the Company. The distribution of turnover and profit over
industries, products, and territories are as the following (RMB0’000)
Segments on industries
On industry or
product
Turnover Operation cost
Gross profit
ratio (%)
Increase/decre
ase of
turnover over
the same
period of last
year (%)
Increase/decre
ase of
operation cost
over the same
period of last
year (%)
Increase/decrea
se of gross
profit ratio
over the same
period of last
year (%)
Metal production 32,220.85 25,925.82 19.54% -2.59% -3.73% 0.95%
Railroad industry 7,201.57 5,947.25 17.42% 423.25% 399.17% 3.97%
Segments on products
Glass wall products 25,861.98 20,417.60 21.05% 8.41% -0.73% 7.27%
Aluminum products 6,358.87 5,508.22 13.38% -31.31% -13.54% -17.81%
Metro screen door
products
7,201.57 5,947.25 17.42% 423.25% 399.17% 3.97%
Regions Turnover
Change of income over last year
%
Home sales 39,073.33 28.56%
Export 1,102.69 -76.39%
3. Business Analysis
For the 1st half of 2010, the Company had been seizing the opportunities provided
by national policies supporting new energy and environmental protection industries,15
as well as a positive financial environment, exploring its own pathway of development,
keep focusing on enhancing the competition in the market. As of the end of the
report term, the Company had reserved orders valued to RMB1316.65 million, which
was 39.85% over the end of 2009. It provides a solid foundation for the coming period.
In the report term, the Company has achieved turnover of RMB423.37 million, a 14.44%
of increase on the same period of last year; net profit of RMB33.61 million, a 11.74%
of increase, after deducting of non-recurring gain/loss, the net profit has
increased by 64.52%. This indicates obvious increasing of profitability.
(1) Booming energy saving and environment protection business
In the report term, the Company kept focusing on enhancing its energy saving and
low-carbon industries, and achieved great increase in orders. This made the Company
a more rational industrial strategic layout. Against its advantages in market
reputation and technologies, the Company had won in the bidding competition of
Shenyang Xingmo’er Shopping Mall, China ASEAN (Liuzhou) Industrial Product Trade
Center, Sanya Phoenix Island International Recreation Resort, Shenzhen Jiali Plaza
phase II, and Shenzhen Sinolink Dongjun Plaza Sinolink Building, which amounted to
some RMB600 million of contract value. As of end of the report term, the Company
has reserved the orders of energy-saving curtain wall with contract value of RMB876
million, which was 35.6% of increase over the same in the whole year of 2009. This
laid a solid foundation for the rapid development in the coming years. In the
first half of year, the net profit from energy-saving curtain wall products has
increased by 34.95% over the same period of last year.
Basing on “The Energy-saving Standard of Public Constructions”, the Company’s
energy-saving curtain wall products will save over 50% of energy consuming comparing
with the normal products.
(2) PSD projects stepped onto the stage of historical high peak
At present, the Company is taking over 20% of the market share in the whole country,
and already become the 1st in China and 3rd in the world manufacturer of PSD system.
Now the contracted PSD projects are in the busiest stage. Shenyang Metro Line 1,
Nanjing Metro Line 1 South, Shenzhen Metro Line 1 extension, Shenzhen Metro Line
2, and Shenzhen Metro Line 4, are in construction and on schedule. In the
report term, the Company realized sales of PSD of RMB72.02 million, a 423.25% of
increase over the same period of last year. With its obvious leading position, the
Company has switched to the fast lane in PSD industry.
(3) Semi-conductor lighting industry will be in a new stage
To further improve the industry chain of LED lighting production and expand
productivity to satisfy the market demand, the Company has been pushing the
construction of Shenyang Fangda Semi-conductor Lighting Co., Ltd. Moving of Shenzhen
LED production base to Shenyang has been started. Shenyang Fangda is expected to
start production in the 2nd half of this year. It will become the new platform for
the Company’s development in LED industry.
(4) Successful private offering of new A shares
The Company’s development capability in energy-saving curtain wall and PSD was
enhanced continuously, which lead to great increasing of orders and market share.16
However the conflict between productivity and increasing orders was becoming more
severe. To solve the problem, the Company successfully issued 47.9452 million A
shares to particular subscribers privately and raised RMB349.99996 million of
proceed, which will be used to enlarge the productivities of energy-saving curtain
wall and PSD.
(5) Technical upgrading and productivity expanding of energy-saving material base
To satisfy the increasing demand, Fangda New Material – the fully-owned subsidiary
of the Company, started to expand its productivity and improve the production
environment since later 2009. The reconstruction projects have been completed up
to present. In the process, the Company purchased and installed the most advanced
aluminum board processing equipment and reconstructed the processing center. This
has greatly improved the productivity and technologies of aluminum board production.
(6) In the report term, the Company was awarded the “Top 100 Leading Enterprises
of Shenzhen” once again. Fangda Decoration Co., Ltd. was certified as “National
High-tech Enterprises”. Up to then, all of the five subsidiaries of the Company
were certified as “National High-tech Enterprises”. Nano Self-clean
Fluorocarbon Aluminum Panel, Fluorocarbon Coated Aluminum Panel, and
Aluminum-Plastic Compound Clad Plate – products of Fangda New Material, have
passed the tests for certification of green construction material; Hubei Oncology
Hospital Building – the construction project Fangda New Material participated by
providing internal and external wall materials, has won the Luban Award – the highest
award of construction industry.17
4. Investment in the report term
(1) Use of raised capital
The Company placed A shares privately in the report term and raised RMB349.99996 million, after deducting of RMB14,614,888.27 (covering
promotion fee, sponsoring fee, attorney fee, capital verification fee, registration fee, information disclosing fee, and traveling expenses),
the actual proceed was RMB335,385,071.73. The net amount of proceed has been saved into the special account on June 25, 2010, and not
used yet in the report term. All of the capital raised previously have been used out before the end of 2000.
Total of proceeds 33,538.51
Total of proceeds changed to other use in Total of proceeds in the report term 0.00
the report term 0.00
Accumulated proceeds changed to other
use 0.00
% of accumulated proceeds changed to Total of proceeds invested 0.00
other use 0.00%
Project set by the
prospectus
Changed
for other
use
(including
partially
changed)
Total of
proceeds
to be
invested as
proposed
Adjusted
total
amount of
investment
Amount to
be
invested to
the end of
report
term as
proposed
(1)
Invested
in the
report
term
Accumulated
investment at
end of report
term (2)
Difference
between the
proposed and
actual
accumulated
investment at
end of report
term
(3)=(2)-(1)
Investment
progress at
end of
report term
(%)
(4)=(2)/(1)
Date
when the
project
become
useable as
proposed
Gains
realized
in the
report
term
Gains as
expected?
Major
change in
feasibility?
Energy-saving
curtain wall and
PV curtain wall
production
expanding
project
No 21,000.00 21,000.00 0.00 0.00 0.00 0.00 0.00% 0.00 No No
Expanding of
PSD project No 12,538.51 12,538.51 0.00 0.00 0.00 0.00 0.00% 0.00 No No18
Total - 33,538.51 33,538.51 0.00 0.00 0.00 0.00 - - 0.00 - -
Reason or
situation that not
on schedule (on
specific project)
None
Statement on
major change in
feasibility
None
Change of Not applicable
Adjustment on Not applicable
Pre-investment Not applicable
Idle proceed used Not applicable
Surplus of Not applicable
Application plan
of retained fund
from financing
Will be used in production expanding of energy-saving curtain wall and PSD project.
Problem or
situation in using
of proceeds and
disclosing
None19
(2) Use of non-raised capital
The Company invested to setup Shenyang Fangda Semi-conductor Lighting Co., Ltd.
together with Shenyang Hunnan New Zone State-owned Asset Co., Ltd. The first stage
of construction works has basically completed.
5. Calculation and measuring of major assets, liabilities, income, and
expenses on fair value basis
The Company accounts future contracts, investment properties, and disposable
financial assets on fair value basis.
Future contracts are the aluminum billet future contracts held by Fangda New Material
and Fangda Decoration, which are determined for fair value against the closing rate
at end of the report term.
Investment properties were calculated on the results provided by professional
appraisal institutes.
Disposable financial assets are the 700 thousand ST Magnetic Card shares held by
the Company which were released from selling restriction on March 3, 2010. Their
fair value is decided by the closing rate at end of report term.
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.20
V. Significant Events
1. Company Administration
According to the Company Law, Securities Law, Shenzhen Stock Exchange Share Listing
Rules, Enterprise Accounting System and Enterprise Accounting Standard, the Company
has produced the Shareholders’ Meeting Criteria, Working Regulations of the Board
of Directors, Supervisory Committee Meeting Criteria, President Work Criteria,
Independent Director Working Criteria, Internal Control Criteria, Information
Disclosure Criteria, Proceed Administration Regulations, Accounting Criteria,
Internal Auditing Criteria, Manpower Management Regulations, Legal Affair
Administration Rules, and Purchase Regulations. These have composed a mature and
effective internal control system covering all aspects of the business operation
including investment decision-making, related transactions, financial management,
R&D management, HRM, executive management, purchase management, production and
sales management and information disclosure. All of them have been implemented
smoothly and there isn’t any major defect or fraudulent practices in executing of
the internal control system. The internal control system was designed under
principles of scientific, rational, and standardization, and with reference to the
Company’s practical business operations.
According to the requirement of 深证局发〔2010〕109 号issued by Shenzhen Securities
Regulatory Bureau, the Company produced the “Special Working Plan for Fundamental
Accounting Works” on April 14, 2010, and was approved at the 11th meeting of the
Auditing Committee of the Board. Self-verification works have been carried out
according to the plan and the “Self-verification Report” was produced. The report
was approved at the 18th meeting of the 5th term of Board held on May 28, 2010.
2. Execution of profit distribution and capitalizing of
common reserves in the report term
No profit distribution was implemented in the report term.
The common reserve capitalizing plan of 2009 was: base on the total capital shares
of 426,786,359 at end of 2009, capitalizing of common reserves will be 0.7 share
upon each 10 shares to the entire shareholders. Totally 29,875,045 shares were to
capitalized. The total of capital shares will increase from 426,786,359 up to
456,661,404 shares. The newly added A shares have been transferred directly to the
accounts of A share holders on April 6, 2010, while the newly added B shares have
been transferred directly into the accounts of B share holders on April 8, 2010.21
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.22
In RMB
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
Accounting
subject
Source
of
shares
600800
ST
Magnetic
Card
4,850,000.00 0.11% 3,150,000.00 0.00 -325,200.55
Disposable
financial
asset
Debt
paid in
kind
Total 4,850,000.00 - 3,150,000.00 0.00 -325,200.55 - -
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.
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
a. 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. The whole contract amount was increased up to RMB174.2864 million in June 2009
Block 5 and 6 have been finished and accepted, where 2 and 3 are basically finished.
b. The curtain wall project of block 3# and 4# of Sanya Phoenix Island Recreation Resort is
contracted with RMB72.540231 million, which is on schedule according to the contract.
c. Shenyang Xinmo’er Shopping Mall was contracted with RMB139.90 million, and Dalian
Wanda Center was contracted with RMB58.971009 million, both of them are on schedule.23
d. Shenzhen Jiali Plaza phase II is contracted with RMB105.08 million, and is on schedule
according to the contract.
e. Shenzhen Metro Line 1 PSD system is contracted with RMB79.8586 million, which is on
schedule as the contract.
f. Shenzhen Metro Line 2 PSD system is contracted with RMB169.256 million, which is on
schedule.
g. Nanjing Metro PSD is contracted with RMB59.52 million, which is on schedule as contracted.
h. Wuhan Railway Line 2 phase I PSD system is contracted with RMB80.8598 million, and is on
schedule according to the contract.
(3) No major cash asset was consigned to under administration of others in the report
term.
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 no-incorporated 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, 2010, guarantees provided
by the Company were as the followings:24
In RMB0’000
External Guarantee (Exclude controlled subsidiaries)
Guarantee
provided to
Date and Ref.
of the
announcement
about the
guarantee
Amount of
the
guarantee
Actual date
of occurring
(signing
date of
agreements
Actual
amount of
guarantee
Type of
guarantee Term Completed
or not
Related
party or not
Total of external guarantee approved in the
report term (A1) 0.00 Total of external guarantee actually occurred in the
report term (A2) 0.00
Total of external guarantee approved as of end of
report term (A3) 0.00 Total of external guarantee actually occurred as of end
of report term (A4) 0.00
Guarantee provided to controlled subsidiaries
Guarantee
provided to
Date and Ref. of
the
announcement
about the
guarantee
Amount of
the
guarantee
Actual date of
occurring
(signing date
of agreements
Actual
amount of
guarantee
Type of
guarantee Term Completed
or not
Related
party or
not
Fangda
Decoration
No. 2101-06 on
Feb 12 2010 20,000.00 Mar 18 2010 15,086.86 joint
liability
2 yrs upon
expiration
of the main
contract
No No
Fangda
Decoration
No. 2101-06 on
Feb 12 2010 7,000.00 Mar 18 2010 1,164.23 joint
liability
2 yrs upon
expiration
of the main
contract
No No
Fangda
Decoration
No. 2101-06 on
Feb 12 2010 5,000.00 Feb 23, 2010 5,000.00 joint
liability
2 yrs upon
expiration
of the main
contract
No No
Fangda
Automatic
No. 2101-06 on
Feb 12 2010 25,000.00 Apr 15 2010 11,017.81 joint
liability
2 yrs upon
expiration
of the main
contract
No No
Fangda
Automatic
No. 2101-06 on
Feb 12 2010 6,000.00 April 20,
2010 2,091.54 joint
liability
2 yrs upon
expiration
of the main
contract
No No
Fangda
New
Material
No. 2101-06 on
Feb 12 2010 5,000.00 Jun 13, 2010 1,600.00 joint
liability
2 yrs upon
expiration
of the main
contract
No No
Total of guarantee to subsidiaries
approved in the report term (B1) 88,800.00 Total of guarantee to subsidiaries actually occurred
in the report term (B2) 7,888.63
Total of guarantee to subsidiaries
approved as of the report term (B3) 88,800.00 Total of balance of guarantee actually provided to
the subsidiaries as of end of report term (B4) 47,059.72
Total of guarantee provided by the Company (i.e. total of the above two items)
Total of guarantee approved in the report term
(A1+B1) 88,800.00 Total of guarantee occurred in the report
term (A2+B2) 7,888.63
Total of guarantee approved as of end of report
term (A3+B3) 88,800.00 Total of guarantee occurred as of the end of
report term 47,059.72
Percentage of the total guarantee occurred (A4+B4) on net asset of the Company 47.78%
In which:
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) 21,291.08
Amount of guarantee over 50% of the net asset (E) 0.00
Total of the above 3 * (C+D+E) 21,291.08
Statement on the possible joint liabilities on the guarantees not due yet None25
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.26
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. The Company accepted no onsite investigation, telephone
or written inquiry in the report term.
16. The followings are the regular and provisional
announcements and reports published in the report term:
No. Content Date of
publishing
Press media Page No.
2010-01
Resolutions of the 13th
Meeting of the 5th Term
of Board
2010.1.19
China Securities Journal C08
Securities Times D2
Shanghai Securities Daily B25
Hong Kong Commercial Daily (English) A6
2010-02 Announcement on
change of stock ID 2010.1.22
China Securities Journal B04
Securities Times D9
Shanghai Securities Daily B16
Hong Kong Commercial Daily (English) A7
2010-03 Announcement of
Business Growth 2010.1.26
China Securities Journal D012
Securities Times B12
Shanghai Securities Daily B24
Hong Kong Commercial Daily (English) A8
2010-04
Announcement on
Delayed Annual Report
of 2009
2010.2.11
China Securities Journal D004
Securities Times D24
Shanghai Securities Daily B16
Hong Kong Commercial Daily (English) A16
2010-05
Resolutions of the 14th
Meeting of the 5th Term
of Board
2010.2.12
China Securities Journal D012
Securities Times D32
Shanghai Securities Daily 38
Hong Kong Commercial Daily (English) A19
2010-06 Announcement on 2010.2.12 China Securities Journal D01227
guarantees provided to or
by the subsidiaries
Securities Times D32
Shanghai Securities Daily 38
Hong Kong Commercial Daily (English) A19
2010-07
Resolutions of the 15th
Meeting of the 5th Term
of Board
2010.2.27
China Securities Journal C015,C016
Securities Times B20
Shanghai Securities Daily 25
Hong Kong Commercial Daily (English) A8
2010-08
Announcement of
Resolutions of the 8th
Meeting of the 5th Term
of Supervisory
Committee
2010.2.27
China Securities Journal C016
Securities Times B20
Shanghai Securities Daily 25
Hong Kong Commercial Daily (English) A8
2010-09
Notice for the
Shareholders’ Annual
Meeting 2009
2010.2.27
China Securities Journal C016
Securities Times B20
Shanghai Securities Daily 25
Hong Kong Commercial Daily (English) A8
2010-10 Annual Report 2009
(Summary) 2010.2.27
China Securities Journal C016
Securities Times B19、B20
Shanghai Securities Daily 25、26
Hong Kong Commercial Daily (English) A7,A8
2010-11
Announcement about the
fully-owned subsidiary
was awarded high-tech
enterprise
2010.3.5
China Securities Journal B01
Securities Times B10
Shanghai Securities Daily B41
Hong Kong Commercial Daily (English) A27
2010-12
Resolutions of the 16th
Meeting of the 5th Term
of Board
2010.3.20
China Securities Journal C008
Securities Times B52
Shanghai Securities Daily 56
Hong Kong Commercial Daily (English) A8
2010-13
The Resolutions of
Shareholders’ General
Meeting 2009
2010.3.23
Securities Times D36
Shanghai Securities Daily B86
Hong Kong Commercial Daily (English) A9
China Securities Journal D009
2010-14
Announcement of
capitalizing of capital
reserves
2010.3.30
Securities Times B8
Shanghai Securities Daily B216
Hong Kong Commercial Daily (English) A5
China Securities Journal A28
2010-15
Announcement on
Adjusting of the Limit of
Amount and Base Price
of the Private Placing of
A Shares in 2009
2010.4.6
Securities Times B10
Shanghai Securities Daily 28
Hong Kong Commercial Daily (English) A14
China Securities Journal C004
2010-16
Announcement on
engaging of contract by
Fangda Decoration
2010.4.13
Securities Times A16
Shanghai Securities Daily B59
Hong Kong Commercial Daily (English) A6
China Securities Journal D044
2010-17
Public Notice on
Irregular Vibration of
Stock Price
2010.4.22
Securities Times A12
Shanghai Securities Daily B134
Hong Kong Commercial Daily (English) A8
China Securities Journal D004
2010-18 The 1st quarterly report
2010 2010.4.24
Securities Times B33
Shanghai Securities Daily 89
Hong Kong Commercial Daily (English) A7
China Securities Journal C020
2010-19
Announcement on
Suspending of Stock
Trade for Filing of
Private Placing to China
Securities Regulatory
Commission
2010.4.24
Securities Times B33
Shanghai Securities Daily 89
Hong Kong Commercial Daily (English) A7
China Securities Journal C020
2010-20 Announcement on
engaging of contract by
Fangda Decoration
2010.4.24
Securities Times B33
Shanghai Securities Daily 89
Hong Kong Commercial Daily (English) A7
China Securities Journal C020
2010-21 Announcement of 2010.4.27 Securities Times D828
Approval of New
A-Share Placing
Shanghai Securities Daily B136
Hong Kong Commercial Daily (English) A9
China Securities Journal D108
2010-22
Announcement on
engaging of contract by
Fangda Decoration
2010.5.19
Securities Times D14
Shanghai Securities Daily B24
Hong Kong Commercial Daily (English) A7
China Securities Journal B017
2010-23
Announcement of
Approval of New
A-Share Placing
2010.5.29
Securities Times B9
Shanghai Securities Daily 28
Hong Kong Commercial Daily (English) A15
China Securities Journal B009
All of the above announcements are available in the website assigned by China
Securities Regulatory Commission: www.cninfo.com.cn
VI. Financial Report
(Not Audited)
1. Financial Statements (Not audited, enclosed)
2. Notes to Financial Statements (enclosed)
VII. Document Ready for Inquiring29
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.
August 17, 201030
Balance Sheet
Prepared by: China Fangda Group Co., Ltd. June 30th 2010
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 523,519,163.98 349,594,745.51 225,638,874.09 42,274,488.50
Settlement provision
Outgoing call loan
Transactional financial assets
Notes receivable 8,070,000.00 620,000.00
Account receivable 357,101,578.77 7,451,835.71 333,653,242.73 10,360,034.57
Prepayment 36,209,525.12 701,288.42 14,855,691.29 142,638.53
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance
contracts receivable
Interest receivable 360,525.00
Dividend receivable 36,684,034.95 68,300,000.00
Other account receivable 70,078,325.63 129,111,756.41 34,909,899.09 254,201,660.72
Repurchasing of financial assets
Inventories 229,991,139.43 198,970,648.46
Non-current asset due in 1 year
Other current asset 3,315,075.00
Total of current asset 1,224,969,732.93 523,543,661.00 812,323,955.66 375,278,822.32
Non-current assets
Loans and payment on other’s
behalf disbursed
Sellable financial asset 3,150,000.00 3,150,000.00 7,520,445.42 3,496,410.96
Expired investment in possess
Long-term receivable
Long-term share equity
investment 2,997,216.45 327,121,953.02 2,997,216.45 327,121,953.02
Investment properties 266,051,135.12 257,499,735.12 259,497,678.80 251,001,478.80
Fixed assets 233,736,037.79 55,249,492.19 259,250,051.32 56,120,248.80
Construction in process 30,610,742.11 294,639.00 18,327,957.02
Engineering goods
Fixed asset disposal 868.59 455,423.65
Production physical assets
Gas & petrol
Intangible assets 73,727,303.53 10,027,409.94 78,469,313.92 10,270,993.34
R&D expense 1,932,314.17 1,185,899.73
Goodwill 8,197,817.29 8,197,817.29
Long-term amortizable expenses
Differed income tax asset 35,828,787.13 18,931,696.57 34,588,252.85 18,497,571.25
Other non-current asset
Total of non-current assets 656,232,222.18 672,274,925.84 670,490,056.45 666,508,656.17
Total of assets 1,881,201,955.11 1,195,818,586.84 1,482,814,012.11 1,041,787,478.49
Current liabilities
Short-term loans 380,000,000.00 210,000,000.00 370,000,000.00 210,000,000.00
Loan from Central Bank
Deposit received and hold for31
others
Call loan received
Trade off financial liabilities
Notes payable 40,340,505.65 24,166,495.62
Account payable 224,234,762.07 1,905,140.36 200,145,847.34 7,653,666.23
Prepayment received 77,498,633.15 693,045.60 82,972,481.39 771,848.60
Selling of repurchased financial
assets
Fees and commissions
receivable
Employees’ wage payable 4,384,143.46 1,482.00 4,583,925.93 10,251.76
Tax payable 23,697,138.07 1,196,786.72 30,026,775.63 1,156,239.74
Interest payable 498,637.50 275,262.50 557,551.25 323,688.75
Dividend payable
Other account payable 25,251,443.97 9,438,732.25 29,077,737.90 194,524,051.83
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Non-current liability due in 1
year
Other current liability 1,648,500.00
Total of current liability 777,553,763.87 223,510,449.43 741,530,815.06 414,439,746.91
Non-current liabilities
Long-term borrowings
Bond payable
Long-term payable
Special payable
Contingent liabilities
Differed income tax liability 25,649,790.27 25,249,508.88 22,622,907.36 21,285,505.98
Other non-recurring liabilities 5,200,000.00 4,250,000.00
Total of non-current liabilities 30,849,790.27 25,249,508.88 26,872,907.36 21,285,505.98
Total of liability 808,403,554.14 248,759,958.31 768,403,722.42 435,725,252.89
Owners’ equity (or shareholders’
equity)
Capital paid in (or share capital) 504,606,604.00 504,606,604.00 426,786,359.00 426,786,359.00
Capital reserves 330,891,119.92 292,921,839.54 80,622,488.67 35,682,213.36
Less: Shares in stock
Special reserves
Surplus reserves 13,360,180.84 13,360,180.84 13,360,180.84 13,360,180.84
Common risk provision
Retained profit 136,135,146.48 136,170,004.15 102,526,565.06 130,233,472.40
Different of foreign currency
translation
Total of owner’s equity belong to
the parent company 984,993,051.24 947,058,628.53 623,295,593.57 606,062,225.60
Minor shareholders’ equity 87,805,349.73 91,114,696.12
Total of owners’ equity 1,072,798,400.97 947,058,628.53 714,410,289.69 606,062,225.60
Total of liabilities and owners’
equity
1,881,201,955.11 1,195,818,586.84 1,482,814,012.11 1,041,787,478.4932
Income Statement
Prepared by: China Fangda Group Co., Ltd. Jan-Jun 2010 RMB Yuan
Items
Amount of the Current Term Amount of the Previous Term
Consolidated Parent
company Consolidated Parent
company
I. Total revenue 423,379,762.74 18,558,245.60 369,945,313.89 17,409,790.44
Incl. Business income 423,379,762.74 18,558,245.60 369,945,313.89 17,409,790.44
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 409,935,200.30 18,620,458.50 365,365,584.81 17,270,468.30
Incl. Business cost 339,167,650.59 4,777,841.15 299,542,925.11 4,470,349.48
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 7,268,385.20 736,359.67 9,767,330.95 664,694.71
Sales expense 12,733,055.35 604,810.28 10,902,148.67 591,616.45
Administrative expense 39,721,901.51 9,680,484.63 31,629,232.39 8,874,149.42
Financial expenses 10,189,597.13 3,061,119.80 9,764,547.03 2,560,492.78
Asset impairment loss 854,610.52 -240,157.03 3,759,400.66 109,165.46
Plus: Gains from change of fair value (“-“ for
loss)
6,553,456.32 6,498,256.32 3,515,396.52 2,249,337.72
Investment gain (“-“ for loss) 3,174,066.97 16,922,613.40
Incl. Investment gains from affiliates
Gains from currency exchange (“-“ for loss)
III. Operational profit (“-“ for loss) 23,172,085.73 6,436,043.42 25,017,739.00 2,388,659.86
Plus: Non business income 14,744,047.55 3,452,536.32 1,416,575.88 437,535.27
Less: Non-business expenses 1,130,612.42 400,960.00 284,135.30 1,826.51
Incl. Loss from disposal of non-current assets
IV. Gross profit (“-“ for loss) 36,785,520.86 9,487,619.74 26,150,179.58 2,824,368.62
Less: Income tax expenses 6,486,285.83 3,551,087.99 -892,969.03
V. Net profit (“-“ for net loss) 30,299,235.03 5,936,531.75 27,043,148.61 2,824,368.62
Net profit attributable to the owners of parent
company 33,608,581.42 5,936,531.75 30,076,634.28 2,824,368.62
Minor shareholders’ equity -3,309,346.39 -3,033,485.67
VI. Earnings per share:
(I) Basic earnings per share 0.074 0.066
(II) Diluted earnings per share 0.074 0.066
VII. Other misc. incomes -7,296,195.48 -325,200.55 -4,586,987.89 984,125.20
VIII. Total of misc. incomes 23,003,039.55 5,611,331.20 22,456,160.72 3,808,493.82
Total of misc. incomes attributable to the
owners of the parent company 26,312,385.94 5,611,331.20 25,489,646.39 3,808,493.82
Total misc. gains attributable to the minor
shareholders -3,309,346.39 -3,033,485.6733
Cash Flow Statement
Prepared by: China Fangda Group Co., Ltd. Jan-Jun 2010 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 392,653,009.60 16,630,116.26 406,547,823.93 26,234,711.17
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 239,302.17 186,253.97
Other cash received from business
operation 39,549,834.46 5,304,349.62 36,241,231.56 1,272,565.74
Sub-total of cash inflow from business
activities 432,442,146.23 21,934,465.88 442,975,309.46 27,507,276.91
Cash paid for purchasing of merchandise
and services 346,365,488.62 6,267,741.94 315,924,312.50 6,323,133.66
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 32,596,329.65 2,943,955.51 26,817,645.66 2,538,136.69
Taxes paid 34,980,004.22 2,108,963.92 16,837,906.20 2,875,912.65
Other cash paid for business activities 58,027,646.80 8,989,344.74 38,365,969.24 3,787,931.62
Sub-total of cash outflow from business
activities 471,969,469.29 20,310,006.11 397,945,833.60 15,525,114.62
Cash flow generated by business
operation, net -39,527,323.06 1,624,459.77 45,029,475.86 11,982,162.29
II. Cash flow generated by investing
Cash received from investment retrieving 854,089.54 11,678,754.96
Cash received as investment gains 3,176,516.97 31,615,965.05 17,712,589.83
Net cash retrieved from disposal of fixed
assets, intangible assets, and other long-term
assets
2,372,184.95 1,220.00 1,220.00
Net cash received from disposal of34
subsidiaries or other operational units
Other investment-related cash received 184,000.00
Sub-total of cash inflow due to
investment activities 6,402,791.46 31,615,965.05 29,576,564.79 1,220.00
Cash paid for construction of fixed assets,
intangible assets and other long-term assets 17,353,594.62 1,125,645.91 2,756,502.32 170,098.50
Cash paid as investment 4,916,722.80
Net increase of loan against pledge
Net cash received from subsidiaries and
other operational units
Other cash paid for investment activities
Sub-total of cash outflow due to
investment activities 17,353,594.62 1,125,645.91 7,673,225.12 170,098.50
Net cash flow generated by investment -10,950,803.16 30,490,319.14 21,903,339.67 -168,878.50
III. Cash flow generated by financing
Cash received as investment 340,499,960.00 340,499,960.00 50,000,000.00
Incl. Cash received as investment from
minor shareholders
Cash received as loans 276,000,000.00 152,821,754.51 508,535,659.25 275,765,541.22
Cash received from bond placing
Other financing-related cash received 3,765.25
Subtotal of cash inflow from financing
activities 616,503,725.25 493,321,714.51 558,535,659.25 275,765,541.22
Cash to repay debts 266,000,000.00 210,000,000.00 457,198,471.49 229,000,000.00
Cash paid as dividend, profit, or interests 9,008,860.25 5,156,671.25 10,843,491.21 6,130,606.65
Incl. Dividend and profit paid by
subsidiaries to minor shareholders
Other cash paid for financing activities 2,978,629.66 2,978,629.66 95,901,563.87 40,015,000.00
Subtotal of cash outflow due to financing
activities 277,987,489.91 218,135,300.91 563,943,526.57 275,145,606.65
Net cash flow generated by financing 338,516,235.34 275,186,413.60 -5,407,867.32 619,934.57
IV. Influence of exchange rate alternation on
cash and cash equivalents -12,216.25 2.70 -12,120.33 -795.83
V. Net increase of cash and cash equivalents 288,025,892.87 307,301,195.21 61,512,827.88 12,432,422.53
Plus: Balance of cash and cash equivalents
at the beginning of term 210,823,550.83 42,024,488.50 112,333,106.38 3,452,206.23
VI. Balance of cash and cash equivalents at the
end of term 498,849,443.70 349,325,683.71 173,845,934.26 15,884,628.76351
Consolidated Statement of Change in Owners’ Equity
Prepared by: China Fangda Group Co., Ltd. Interim 2010 RMB Yuan
Items
Amount of the Current Term Amount of Last Year
Owners’ Equity Attributable to the Parent Company Minor
sharehol
ders’
equity
Total of
owners’
equity
Owners’ Equity Attributable to the Parent Company Minor
sharehol
ders’
equity
Total of
owners’
equity
Capital paid
in (or share
capital)
Capital
reserves
Less:
Shares in
stock
Special
reserves
Surplus
reserves
Common
risk
provision
Retained
profit Others
Capital
paid in
(or share
capital)
Capital
reserves
Less:
Shares in
stock
Special
reserves
Surplus
reserves
Common
risk
provision
Retained
profit Others
I. Balance at the end of last
year
426,786,359.0
0 80,622,488.67 13,360,180.84 102,526,5
65.06
91,114,69
6.12
714,410,2
89.69
426,786,3
59.00
61,095,30
8.51 0.00 6,388,697.
44
65,445,53
7.00
67,604,29
5.45
627,320,1
97.40
Plus: Change of accounting
policy 0.00
Correcting of previous errors 0.00
Others
II. Balance at the beginning of
current year
426,786,359.0
0 80,622,488.67 13,360,180.84 102,526,5
65.06
91,114,69
6.12
714,410,2
89.69
426,786,3
59.00
61,095,30
8.51 0.00 6,388,697.
44 0.00 65,445,53
7.00
67,604,29
5.45
627,320,1
97.40
III. Changed in the current year
(“-“ for decrease) 77,820,245.00 250,268,631.25 33,608,58
1.42
-3,309,346
.39
358,388,1
11.28 0.00 14,787,01
2.11 0.00 0.00 0.00 30,076,63
4.28
27,592,51
4.33
72,456,16
0.72
(I) Net profit 33,608,58
1.42
-3,309,346
.39
30,299,23
5.03
30,076,63
4.28
-3,033,485
.67
27,043,14
8.61
(II) Other misc. income -7,296,195.48 -7,296,195
.48
-4,586,987
.89
-4,586,987
.89
Total of (I) and (II) -7,296,195.48 33,608,58
1.42
-3,309,346
.39
23,003,03
9.55 0.00 -4,586,987
.89 0.00 0.00 0.00 30,076,63
4.28
-3,033,485
.67
22,456,16
0.72
(III) Investment or
decreasing of capital by owners 47,945,200.00 287,439,871.73 335,385,0
71.73
19,374,00
0.00
30,626,00
0.00
50,000,00
0.00
1. Capital inputted by
owners 47,945,200.00 287,439,871.73 335,385,0
71.73
19,374,00
0.00
30,626,00
0.00
50,000,00
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. Common risk provision 0.00
3. Allotment to the owners
(or shareholders) 0.00
4. Others 0.00
(V) Internal transferring of
owners’ equity 29,875,045.00 -29,875,045.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Capitalizing of capital
reserves (or to capital shares) 29,875,045.00 -29,875,045.00 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 0.00
(VI) Special reserves
1. Provided this year2
2. Used this term
IV. Balance at the end of this
term
504,606,604
.00
330,891,119.9
2
13,360,180.
84
136,135,
146.48
87,805,3
49.73
1,072,79
8,400.97
426,786,
359.00
75,882,3
20.62 0.00 6,388,69
7.44 0.00 95,522,1
71.28
95,196,8
09.78
699,776,
358.123
Change in Owners’ Equity (Parent Co.)
Prepared by: China Fangda Group Co., Ltd. Interim 2010 RMB Yuan
Items
Amount of the Current Term Amount of Last Year
Capital
paid in (or
share
capital)
Capital
reserves
Less:
Shares in
stock
Special
reserves
Surplus
reserves
Common
risk
provision
Retained
profit
Total of
owners’
equity
Capital
paid in (or
share
capital)
Capital
reserves
Less:
Shares in
stock
Special
reserves
Surplus
reserves
Common
risk
provision
Retained
profit
Total of
owners’
equity
I. Balance at the end of last year 426,786,35
9.00
35,682,213.
36
13,360,180.
84
130,233,47
2.40
606,062,22
5.60
426,786,35
9.00
33,267,012.
81 0.00 6,388,697.4
4
67,490,121.
80
533,932,19
1.05
Plus: Change of accounting policy 0.00
Correcting of previous errors 0.00
Others 0.00
II. Balance at the beginning of current year 426,786,35
9.00
35,682,213.
36
13,360,180.
84
130,233,47
2.40
606,062,22
5.60
426,786,35
9.00
33,267,012.
81 0.00 6,388,697.4
4
67,490,121.
80
533,932,19
1.05
III. Changed in the current year (“-“ for
decrease)
77,820,245.
00
257,239,62
6.18
5,936,531.7
5
340,996,40
2.93 0.00 984,125.20 0.00 0.00 2,824,368.6
2
3,808,493.8
2
(I) Net profit 5,936,531.7
5
5,936,531.7
5
2,824,368.6
2
2,824,368.6
2
(II) Other misc. income -325,200.5
5
-325,200.5
5 984,125.20 984,125.20
Total of (I) and (II) -325,200.5
5
5,936,531.7
5
5,611,331.2
0 0.00 984,125.20 0.00 0.00 2,824,368.6
2
3,808,493.8
2
(III) Investment or decreasing of capital
by owners
47,945,200.
00
287,439,87
1.73
335,385,07
1.73 0.00
1. Capital inputted by owners 47,945,200.
00
287,439,87
1.73
335,385,07
1.73 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. Common risk provision
3. Allotment to the owners (or
shareholders) 0.00
4. Others 0.00
(V) Internal transferring of owners’
equity
29,875,045.
00
-29,875,04
5.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Capitalizing of capital reserves (or to
capital shares)
29,875,045.
00
-29,875,04
5.00 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 0.00
(VI) Special reserves
1. Provided this year
2. Used this term
IV. Balance at the end of this term 504,606,60
4.00
292,921,83
9.54
13,360,180.
84
136,170,00
4.15
947,058,62
8.53
426,786,35
9.00
34,251,138.
01 0.00 6,388,697.4
4
70,314,490.
42
537,740,68
4.874
China Fangda Group Co., Ltd.
Notes to Financial Statements
Jan-Jun 2010
P r e p a r e d b y : C h i n a F a n g d a G r o u p C o . , L t d . I n R M B Yu a n
一、General Information
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.
Business registration number: 440301501124785. On May 27, the Company was
approved by China Securities Regulatory Commission (document 证监许可[2010]720
号) to issue up to 100 million new shares privately. On June 12, 2010, the
Company issued 47.9452 million shares at RMB7.30 each and raised RMB349.99996
million of capital. On June 24, 2010, as approved by Shenzhen Bureau of Trade and
Industry (document 深贸工资复[2010]1680 号), the Company increased its registered
capital from RMB456.661404 million to RMB504.606604 million. The registration
procedures were completed on June 30, and the total share capital of the Company
has become RMB504.606604 million. Registered office address: Fangda Building,
Kejinan Road 12, High-tech Zone, Shenzhen; 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 items and produces under export
certification, and their design, developing, installation, construction, technical consulting, and
training. Managing and leasing of properties under possession (Fangda Building at Ke-Ji-Nan
Road 12, and Fangda Town at Longzhu Road 4), parking services of Fangda Building.5
二、Main Accounting Policies, Estimations and Retrospect of Previous Accounting
Errors
(1) Basis for the preparation of financial statements
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.
(2) Statement of compliance to the Enterprise Accounting Standard
The financial report and statements are prepared with compliance to the
requirement of the Enterprise Accounting Standard. They are reflecting the financial
position at June 30, 2010, and business performance and cash flow situation of
Jan-Jun 2010 of the Company frankly and completely.
(3) Fiscal period
The fiscal year of the Group is the solar calendar year, that is from January 1 to December
31.
(4) Standard currency for bookkeeping
The Company takes RMB as the standard currency for bookkeeping.
(5) Accounting treatment of the entities under common control and different control as
well
1. Consolidation of entities under common control
Assets and liabilities obtained by the merging party are calculated at their
book value with the merged parties at the merger day. 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.6
2. Consolidation of entities 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.
(6) Preparation of Consolidated Financial Statements
Consolidation range is determined on the basis of control power for the
consolidated financial statements.
The Financial Statements of the Company are prepared according to “Enterprise
Accounting Standard No.33 – Consolidated Financial Statements” and relative rules.
All major trades and interchanges within the consolidation range have been
neutralized. The part of shareholders’ equities not attributable to the parent
company are presented individually as minority shareholders’ equity in the
consolidated financial statements.
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 existing since the contol power is acquired,
the initial figures of the consolidated balance sheet will be adjusted as well as
the related items.7
(7) Recognition of cash and 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.
(8) 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. Non-monetary
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.
(9) Financial instrument
1. Classification, recognition and measuring basis of financial instruments
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.
The Company has financial liabilities including: financial liabilities and
other financial liabilities accounted into current gain/loss account at fair value.
(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 expenses8
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) 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
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”.
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”.
(3) Financial liabilities measured at fair value with variations
accounted into current income account
Including transactional financial liabilities and financial liabilities
directly measured by fair value and with variations accounted into current gain/loss
account, including: 1) Financial liabilities undertaken to be repurchased in short9
future; 2) Those directly assigned as financial liabilities directly measured by fair
value and with variations accounted into current gain/loss account in view of risk
management or strategic investment needs; 3) Derivate instruments not used as
hedging instruments.
Such financial liabilities are evaluated at fair value, and the transaction
expenses could happen in future clearance are not deducted. If fair value is not
suitable, evaluation will be on balance of cost after amortizing.
(4) Other financial liabilities
Other financial liabilities are those other than financial liabilities measured
by fair value and changes recorded into current gain/loss account, which mainly
include account payable and long-term payable accounts generated by purchasing of
goods. Other financial liabilities are initially recognized by their fair value plus
relative trade expenses. Subsequent measurement is on amortized costs.
For other financial liabilities which are not at fair value through profit or
loss, for example financial guaranteed contracts, they are initially recognized at
fair value plus any directly attributable transaction costs. After the initial
recognition, the other financial liabilities are measured at the higher of the amount
measured in accordance with “Accounting Standards for Business Enterprises No.13
– Contingency” and the amortized balance measured in accordance with “Accounting
Standards for Business Enterprises No.14 – Revenue”.
2. Basis of recognition and accounting of financial asset transferring
Transferring of financial assets by the Company is including the following two
cases:
(1) Transfer the rights of collecting the cash flow attached to the financial
asset to another party;
(2) Transfer the financial asset to another party, but reserve the rights to
collect cash flow related to such financial asset, and is responsible to pass the
cash flow over to the final beneficiary, and satisfying all of the following
conditions:
A. Only when equal cash flow was received upon the financial asset, the party
is obligated to give it to the final beneficiary party. When an enterprise is making10
payment on other’s behalf for a short term, and will be retrieved in full along
with interest at fair market rate, shall be deemed as satisfying this condition.
B. As bounded by the contract, the financial asset is not able to be disposed
or use as guarantee, however it can be used as guarantee for cash flow of final
payment.
C. The party is obligated to duly forward the cash flow to the final beneficiary
party. However except for the cash or cash equivalent the enterprise is not entitled
to reinvest, but received between the two payments as setout by the contract. When
the party is reinvesting the cash according to the contract, the gains shall be passed
to the final beneficiary party according to the contract.
Recognition of the financial asset is terminated as soon as all of the risks
and rewards attached to the financial asset has been transferred to the receiver.
Whereas if all of the risks and rewards attached to the financial assets are reserved,
recognition of the financial asset shall not be terminated.
When non of the transferring or reserving of the all risks and rewards attached
to the financial asset happened, it will be handled as:
(1) When the controlling power over the financial asset is given up, it will
be terminated.
(2) When the controlling power is not given up, financial asset and related
liability shall be recognized according to the extend the Company is involving in
the financial asset.
3. Termination of recognition of financial liabilities
As soon as partial or all of the current responsibilities attached to such
financial liabilities, recognition of partial or all of the financial liabilities
will be terminated. When recognition of financial liabilities are partially or
wholly terminated, the balance between the book value and the price paid (including
non-monetary asset transferred out or new financial liabilities undertaken) shall
be accounted into current income account.
4. Recognition of financial instrument fair values11
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.
5. Impairment testing on financial assets, providing of impairment provision
At balance sheet date, the Company performs testing on the book value of
financial assets other than those measured by fair value and changes accounted into
current income account.
(10)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.
1. Recognition and providing of bad debt provision on individual receivable
account with large amount
The Company divides receivable accounts into project receivables and product receivables.
Project receivables are those recognized at percentage according to the construction contract,
product receivables are those formed in other ways. For the current year, the Company recognizes
project receivables over RMB8 million (including) as 搃ndividual receivable with large amount,
while recognizes product receivables over RMB2 million (including) as 搃ndividual receivable
with large amount, and other receivables over RMB1 million as 搃ndividual receivable with large
amount”.
On balance sheet day, the Company performs impairment examination individually12
on each large amount receivables, and recognizes impairment and provides bad debt
provision when the impairment is recognized; those not impaired are accounted along
with the minor amount receivables and recognized in risk groups.
2. Recognition and providing of bad debt provisions on minor amount
receivables classified into a group with great risk
Minor amount receivables classified into a group with great risk are those project receivables
below RMB8 million, product receivables below RMB2 million, and other receivables below
RMB1 million, but due for over 5 years and with sufficient evidence showing that hard to be
retrieved.
3. Dividing of risk groups
Dividing of risk groups are on account ages:
Categories
Risk features
within 1 year 1-2 yrs 2-3 yrs Over 3 yrs
Receivable account within
the consolidation range 0 0 0 0
Sales 3% 10% 30% 50%
Others 3% 10% 30% 50%
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.
(11)Inventories
1. Categorizing of 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-value13
consumables, OEM materials, products in process, semi-finished goods, stock
merchandises (finished goods), consigned goods, and construction in process.
2. Pricing of delivering inventory
Inventories are measured at cost when procured, including purchase cost, processing cost,
and other costs. Actual costs are recognized at weight average when delivered. Transferring of
construction materials are recognized individually.
3. Recognition of inventory realizable value and providing of impairment
provision
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.
4. Inventory system
The Company uses perpetual inventory system. Inventories are checked periodicly and the
gains and losses from inventory checking are accounted into current gain/loss account.
5. Amortizing of low-value consumables and packaging materials
Low-value consumables are amortized on on-off amortization basis at using. Other materials
are amortized at 50-50 basis.
(12)Long-term share equity investment
Long-term share equity investment of the Company includes the investment in
subsidiaries, affiliates, and other long-term equities.
1. Recognition of initial investment costs
Investment of the Company in subsidiaries are valued at investment costs. For long-term
share equity investment formed by shareholding and merger please see Note II(V). Retrospective
or retrieved investment are adjusted to the cost of long term equity investment.
For long-term equity investment of the Company with or without common control14
or major influence on the investee, and there is no quotation in an active market,
and the fair value is not reliably measured, values are on initial investment costs.
2. Subsequent measurement and recognition of gain/loss
The Company uses cost basis in subsequent measurement of investment in
subsidiaries, and adjusted on equity basis when preparing the consolidated financial
statement. Except for the announced cash dividend or profit included in the practical
cost or price when the investment was made, the investment gains are recognized at
the announced cash dividend or profit distribution.
Subsequent measurement of long-term equity investment in investees under common
control or significant influence is on equity basis. When the initial investment
cost is larger than the share of fair value of net asset, the initial cost of long-term
equity investment shall not be adjusted. When the initial investment cost is lower
than the share of fair value of net asset, the balance share be accounted into current
gain/loss, and the long-term investment cost shall be adjusted meanwhile.
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 the
invested company is used to reduce the book value of the long-term equity investment.
If the Company has no common control or significant influence on the investee,
and there is no quotation in an active market, the fair value of the long-term
investment is not able to be reliably measured, the subsequent measurement shall
on cost basis.
3. Basis of recognizing common control and significant influence
Common control is the mutual control of investors over an economic action basing
on a contract, only effective when it is agreed by all of the investors who have
the share of control on the financial and business control power. When the investors
hold common control over the investee, the investee is regarded as their affiliate.
Significant influences mean an entity has the power to participate in the decision15
making of another, but cannot dominate individually or jointly with other parties.
When the investor may significantly influence the investee, the investee is regarded
as the affiliate.
4. Impairment examination and providing of impairment provision
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.
(13)Investment properties
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.16
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.
(14)Fixed assets
1. Conditions for fixed asset recognition
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.
2. Depreciation of fixed assets
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:
Categories Depreciation age (year) Retain 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%
3. Impairment testing and impairment provisions
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 amount17
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.
4. Other statements
Fixed assets are initially measured at costs. Among them, cost of fixed assets
purchased from outside include purchasing price, tariffs and other taxes, and other
expenditures directly related to the asset before it reaches the useful status. Cost
of self-build fixed assets is the necessary costs before it is made useful.
Fixed assets invested by investors are booked at the value according to the
investment contract, whereas when the contract value is not fairly acceptable, it
will be booked at the fair value. When a payment for purchasing of fixed asset is
overdue and practically forms financing activity, the fixed asset is recognized at
the current value of purchasing price.
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.
(15)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.
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, construction in process 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,18
it will not be written back in coming fiscal terms.
(16)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 long-term 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, 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.
(17)Intangible assets and development expenses19
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 software.
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.
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, when there is difference with the original estimation, adjustment shall
be made. Intangible assets with limited useful life are amortized as followings:
Categories Useful life Basis of amortization Note
Land using right 50 yrs Average age
Patent 10 yrs Average age
Industrial property and special
tech 10 yrs Average age Internal R&D
Software 5 yrs Average age
Other intangible assets 10 yrs or beneficial
age Average age
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. Intangible
asset without certain useful life shall be tested each year whether or not there is
evidence of impairment.
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 be20
written back in successive fiscal periods.
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 in the development
stage which have been capitalized are recorded as development expenses in the balance
sheet, and shall be transferred to intangible asset as soon as it becomes usable.
(18)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.
(19)Contingent liabilities
When responsibilities occurred in connection to contingent issues, and all of
the following conditions are satisfied, they are recognized as expected liability21
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.
(20)Payment in shares and equity instruments
1. Categories of payment in shares
Share payment of the Company is divided into payment by shares and payment by
cash.
2. Recognition of equity instrument fair value
For equity instruments such as share options with an active market, the fair
value is decided by the quotation in the active market. For those without an active
market, the fair values are decided by a pricing model, and the following factors
shall be considered when deciding the pricing model: (1) Exercising price of
the option; (2) Valid period of the option; (3) Current price of the target shares;
(4) Predicted share price fluctuation rate; (5) Predicted dividend of the
shares; (6) Interest rate without risks in the valid period.
When deciding the fair value of the equity instruments, the influence of market
condition in the exercisable condition and non-exercisable conditions in the payment
agreement shall be considered. When the payment of shares is under non-exercisable
conditions, the cost corresponding to the services shall be recognized only when
the non-market conditions (such as service term) in all of the exercisable conditions
are satisfied by the employee or other parities.22
3. Basis of deciding the best estimation of the exercisable equity instruments
At each balance sheet date during the waiting period, the best estimation shall
be made according to the newest subsequent information such as the number of
employees who have exercisable options, and amount of equity instrument shall be
adjusted. At the exercisable date, the final estimated amount shall be the same with
the practical amount of exercisable options.
4. Accounting treatment of implementing, amending, and terminating of share
payment scheme
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 the owners’ equity
after the exercise date.
In case the equity instrument is canceled in the waiting period, the Company
will accelerate the exercise of the equity instrument to be canceled. The Amount
recognizable for the rest of waiting period shall be accounted into current gain/loss
instantly, and recognized to capital reserves at meantime. When the employee or other
beneficiary failed to satisfy the conditions to exercise the options in the waiting
period, the Company will cancel the equity instrument.
(21)Revenue
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 may23
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 the
receivable contract amount.
2. Providing of labor service
Labor service started and completed in a same fiscal year is recognized as income at
completion. If they are not in the same year, then use the estimation on percentage basis when it is
possible.
When the partial of service is not able to be estimated, the labor service income
is treated as the followings:
A. When the labor cost occurred is expectable to be covered, the labor service
income is recognized at the cost already occurred, and recorded to labor cost as
well.
B. When the labor cost occurred is not expectable to be covered, the cost will
be recorded to current gain/loss account without recognizing as labor service
income.
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. Demising of asset using rights
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 are24
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 and corresponding costs are transferred.
(22)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. None monetary capital are measured at fair value; If no
reliable fair value available, recognized at RMB1.
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 income25
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.
(23)Differed income tax assets/ differed income tax liabilities
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 taxable 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.
(24)Leasing26
Leasing is one of the business operations of the Company.
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 as lessee
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.
(25)Sellable assets in possession
Sellable assets in possession are assets satisfying all of the following
conditions: Resolutions have been made on disposal of these non-current asset;
Irrevocable agreement has been engaged with the buyer. The possession will
be transferred within one year.
(26)Accounting of hedging instruments
Hedging instruments are financial instruments used by the Company to avoid price
risks. The Company use Aluminum Future Contract to reduce risks in purchasing of
aluminum materials. Hedging instruments are recognized as highly effective only when
all of the following conditions are satisfied:
1. The hedging instrument can effectively neutralize the risks of the target
goods caused by change of cash flow since it started and in the following period.
2. The actual effectiveness is between 80% and 125%.
Gains or losses attributable to the effective hedging instruments, are
recognized as owners’ equity directly and demonstrated individually.
(27)Change of main accounting policies and estimations
1. Change of Accounting Policies
No change of accounting policies occurred in the year.
2. Change of accounting estimations
No change of accounting estimations occurred in the year.27
(28)Correction of previous accounting faults
No correction of previous accounting faults occurred in the report term.
三、Taxation
Main tax items and rates applicable to the Company and subsidiaries:
1. Operation tax and surtaxes
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 curtain wall and aluminum
materials
17%
Sales income of screen door materials 17%
Sales income from LED products 17%
City maintenance
and construction
tax
VAT payable + business tax 7% or 1% Note (2)
Education surtax VAT payable + business tax 3%
Local education
surcharges
VAT payable + business tax 1%
Note: (1) 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. Enterprise income tax
Name of companies Tax rate Note
The headquarter 22% Note (1)
Fangda Decoration 15% Note (1), (5)
Fangda Automatic 11% Note (1), (2)
Fangda Yide Co. 22% Note (1)
Fangda Guoke 15% Note (1), (4)
Shenzhen Woke 15% Note (1), (3)
Fangda New Materials (Jiangxi) 11% Note (1), (6)
Fangda Aluminium 25% Note (1)
Shenyang Fangda 25% Note (1)
(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 are28
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
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 20% to 22% since January 1, 2010.
(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 to 2010.On June 27, 2009, Fangda Automatic received the
Certificate of High-tech Enterprise issued by Shenzhen Bureau of Technologies and Information,
Shenzhen National Tax Bureau, and Shenzhen Municipal Tax Bureau, which is effective for three
years.
(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.
(4) According to “Administrative Rules of Recognition of High and New Technology
Enterprises” on October 29, 2009, Fangda Decoration was entitled to enjoy 15% of Corporation
Tax for three years (including 2009) since the qualifications were awarded.
(6) 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. On October 30,
2009, Fangda New Material was awarded the “Certificate of High-tech Enterprises” by Jiangxi
Provincial Department of Science and Technologies, Jiangxi Department of Finance, Jiangxi
National Tax Bureau, and Jiangxi Provincial Tax Bureau, which is effective for three years.
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. Personal income tax
Individual income tax of the employees are paid by the Company on behalf.29
四、Merger of enterprises and consolidated financial statements
Profiles of the subsidiaries
5. Subsidiaries founded acquired from investment
Name of the
subsidiaries
Ownership of the
subsidiary Reg. Add. Ownership type Registered capital
(RMB0’000)
Legal
representative
Fangda
Decoration
Fully-owned
subsidiary Shenzhen Ltd. liability 10,000.00 Xiong Jianwei
Fangda
Automatic
Fully-owned
subsidiary Shenzhen Ltd. liability 5,000.00 Wang Shengguo
Fangda Yide
Co.
Fully-owned
subsidiary Shenzhen Sino-foreign joint venture USD320.00 Yang Xiaozhuan
Fangda Guoke
Subsidiary of
controlled
subsidiary
Shenzhen Ltd. liability (Sole investment
by legal person) 5,000.00 Yu Guoan
Fangda New
Material
Fully-owned
subsidiary Nanchang
Ltd. liability (joint venture
between companies from
Taiwan, Hong Kong or
Macau)
USD1,200.00 Yang Xiaozhuan
Fangda
Aluminum
Fully-owned
subsidiary Nanchang
Ltd. liability (Joint venture
with foreign invested
company)
2,000.00 Yang Xiaozhuan
HK Junjia Fully-owned
subsidiary HK None HKD1.00
Shenyang
Fangda
Controlled
subsidiaries Shenyang Ltd. liability 20,000.00 Wang Shengguo
Name of the
subsidiaries
Share proportion
(%) Voting rights
(%)
Actual investment at end of
year (RMB0’000)
Balance of other items actually formed
net investment in the subsidiaries_{}_
Direct Indirect
Fangda
Decoration 100.00 100.00 10,000.00
Fangda
Automatic 100.00 100.00 5,000.00
Fangda Yide
Co. 100.00 100.00 USD320.00
Fangda Guoke 64.58 64.58 10,500.00
Fangda New
Material 100.00 100.00 USD1,200.00
Fangda
Aluminium 100.00 100.00 2,000.00
HK Junjia 100.00 100.00 HKD1.00
Shenyang
Fangda 64.58 64.58 12,916.00
Name of the
subsidiaries Organization type Organization
code Minor shareholders’ equity
Amount for deducting minor
shareholder’s equity in the minor
shareholder’s equity
Fangda
Decoration Legal person 19244418-2
Fangda
Automatic Legal person 75425429-3
Fangda Yide
Co. Legal person 61929454-0
Fangda Guoke Legal person 72856199-4 See notes See notes
Fangda New
Material Legal person 74852611-7
Fangda
Aluminium Legal person 15830664-030
HK Junjia None None
Shenyang
Fangda Legal person 66254891-3 87,805,349.73 -3,309,346.39
Note: Fangda Guoke is a subsidiary directly controlled by Shenyang Fangda. The minority
shareholders’ equity of Shenyang Fangda is practically including the minority shareholders’ equity
of Fangda Guoke. Thus it is not displayed in the above table separately.
6. Subsidiaries procured from merger of companies under different control
Name of the
subsidiaries
Ownership of the
subsidiary Reg. Add. Ownership
type
Registered
capital
(RMB0’000)
Legal
representative
Business
Scope
Shenzhen
Woke
Subsidiary of
controlled
subsidiary
Shenzhen Ltd. liability 1,000.00 Yu Guoan
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 capital
input at end of
year
RMB0’000
Balance of
other items
actually formed
net investment
in the
subsidiaries
Consolidated?
Direct Indirect
Shenzhen
Woke 64.58 64.58 1,899.13 Yes
Name of the
subsidiaries Ownership type Organization
code
Minor
shareholders’
equity
Amount for
deducting
minor
shareholder’s
equity in the
minor
shareholder’s
equity
Balance of owners’ equity of the
parent company after deducting of
the share of loss of current term by
minor shareholder over the share
of owners’ equity in the subsidiary
at beginning of term
Shenzhen
Woke Legal person 72855858-4 See notes See notes
Note: Shenzhen Woke is a subsidiary directly controlled by Fangda Guoke, and Fangda
Guoke is a subsidiary directly controlled by Sheyang Fangda. The minority shareholders’ equity of
Shenyang Fangda is practically including the minority shareholders’ equity of Fangda Guoke and
Shenzhen Woke. Thus it is not displayed in the above table separately.
五、Notes to the consolidated financial statements
(1) Monetary capital
Items
Balance of book value at end of term Book balance at beginning of year
Original
currency
Exch
ange
rate
Translated to
RMB
Original
currency
Exchan
ge rate
Translated to
RMB
I. Cash
RMB 13,724.77 1.00 13,724.77 14,468.44 1.00 14,468.4431
Items
Balance of book value at end of term Book balance at beginning of year
Original
currency
Exch
ange
rate
Translated to
RMB
Original
currency
Exchan
ge rate
Translated to
RMB
USD
HKD 4,315.50 0.87 3,765.25 9,703.81 0.88048 8,544.01
Cash subtotal 17,490.02 23,012.45
II. Bank
savings
RMB
497,432,781.
64
1.00
497,432,781.
64
208,793,777.1
7
1.00
208,793,777.1
7
USD 205,972.65 6.79 1,399,094.14 280,987.77 6.8282 1,918,640.69
HKD 74.57 0.87 65.05 100,067.66 0.88048 88,107.57
Macao Dollar 2.23 5.76 12.85
Bank saving
subtotal
498,831,953.
68
210,800,525.4
3
III. Other
monetary
capital
-
RMB
24,669,042.3
5
1
24,669,042.3
5
14,814,656.53 1.00 14,814,656.53
USD 99.83 6.79 677.93 99.54 6.8282 679.68
Subtotal of
other monetary
capital
24,669,720.2
8
14,815,336.21
Total
523,519,163.
98
225,638,874.0
9
Note: RMB24,669,042.35 of balance of other monetary capital were mainly bank accepted
draft and guarantee letter deposit. They are not treated as cash equivalents at preparing of cash
flow statements.
(2) Notes receivable
(1) Category of notes receivable
Categories Balance of book value at end of
term
Balance of book value at
beginning of term
Bank acceptance 8,070,000.00 620,000.00
Commercial acceptance
Total 8,070,000.00 620,000.00
Note: The book balance of notes receivable has increased by RMB7.45 million, which was
caused by receiving of trade payments in form of bank accepted notes from customers by Fangda
Automatic.
(2) Top 5 notes endorsed but not due yet are:
Issuer Date of
issue Expired on Amount Note32
Shenzhen Fangda Decoration
Engineering Co., Ltd. 2010.4.23 2010.10.23 5,500,000.00
Prepayment
Shenzhen Fangda Decoration
Engineering Co., Ltd. 2010.4.23 2010.10.23 4,160,000.00
Prepayment
Anhui Wuhu Hengda Plant Town Co.,
Ltd. 2010.06.13 2010.12.12 2,000,000.00
Payment for
goods
Xi’an Shangtai Import & Export Co.,
Ltd. 2010.01.21 2010.7.21 1,000,000.00
Payment for
goods
Zhonghang Sanxin Co., Ltd. 2010.4.29 2010.10.29 800,000.00
Payment for
goods
Total 13,460,000.00
(3) Account receivable
(1) Account receivable is categorized as:
Categories
Balance of book value at end of term
Book value Bad debt provision
Net amount
Amount Proportion Amount Rate
Single receivable
account with mass
amount
240,282,093.45 50.46% 26,824,929.65 11.16% 213,457,163.80
No major amount
individually but
with great risk after
combined with
others with similar
credit risk
144,843,762.82 30.42% 79,247,608.97 54.71% 65,596,153.85
Other non-material
receivables 91,037,640.08 19.12% 12,989,378.96 14.27% 78,048,261.12
Total 476,163,496.35 100.00% 119,061,917.58 25.00% 357,101,578.77
Categories
Balance of book value at beginning of term
Book value Bad debt provision
Net amount
Amount Ratio (%) Amount Providing
rate (%)
Single receivable
account with mass
amount
214,719,343.84 47.39% 25,873,083.80 12.05% 188,846,260.04
No major amount
individually but
with great risk after
combined with
others with similar
credit risk
155,514,020.19 34.33% 84,891,532.03 54.59% 70,622,488.16
Other non-material
receivables 82,832,805.68 18.28% 8,648,311.15 10.44% 74,184,494.53
Total 453,066,169.71 100.00% 119,412,926.98 26.36% 333,653,242.73
Note 1: When the single receivable account recognized on percentage basis of the
construction is over RMB8 million (including 8 million), it will be recognized as “single33
receivable with mass amount”; where other single receivables with over RMB2 million (including
2 million) are recognized as “single receivable with mass amount”.
Note 2: Foreign currencies are:
Items
Balance of book value at end of term Balance of book value at beginning of
term
Original
currency
Exchan
ge rate
Translated to
RMB
Original
currency
Exchang
e rate
Translated to
RMB
USD 1,498,045.53 6.794 10,177,863.84 654,208.27 6.8282 4,467,064.91
HKD 8,992,393.23 0.8724 7,844,963.85 9,256,528.95 0.88048 8,150,188.61
Total 18,022,827.69 12,617,253.52
(2) Receivable accounts on ages:
Age
Balance of book value at end of term
Amount Ratio (%) Bad debt
provision Net amount
within 1 year 170,141,866.99 35.73% 5,105,119.03 165,036,747.96
1-2 yrs (included) 101,282,660.79 21.27% 10,149,674.62 91,132,986.17
2-3 yrs (included) 28,884,622.44 6.07% 8,665,386.72 20,219,235.72
Over 3 yrs 175,854,346.13 36.93% 95,141,737.21 80,712,608.92
Total 476,163,496.35 100.00% 119,061,917.58 357,101,578.77
Age
Balance of book value at beginning of term
Amount Proportion Bad debt
provision Net amount
within 1 year 170,586,591.80 37.65% 5,117,597.75 165,468,994.05
1-2 yrs (included) 75,551,574.63 16.67% 7,555,157.47 67,996,417.16
2-3 yrs (included) 19,237,383.66 4.25% 5,760,340.01 13,477,043.65
Over 3 yrs 187,690,619.62 41.43% 100,979,831.75 86,710,787.87
Total 453,066,169.71 100.00% 119,412,926.98 333,653,242.73
(3) Bad debt provisions on major receivables with large individual amount or minor amount
but examined individually are:
Description of the
receivable accounts
Book value at
end of term
Bad debt
provision
Rate Reason
Curtain wall project
receivable
803,340.45 803,340.45 100.00%
Aged over 5 years, not
expectable to be retrieved
Trade receivable 660,625.41 660,625.41 100.00%
Aged over 5 years, not
expectable to be retrieved
Trade receivable 648,100.95 648,100.95 100.00%
Aged over 5 years, not
expectable to be retrieved
Curtain wall project
receivable
433,868.60 433,868.60 100.00%
Aged over 5 years, not
expectable to be retrieved
Trade receivable 430,629.58 430,629.58 100.00%
Aged over 5 years, not
expectable to be retrieved34
Total 2,976,564.99 2,976,564.99
Note 1: Receivables been provided full bad debt provisions this year were totaled to
RMB13,655,235.25
Note 2: Receivables with minor amount but with greater risks after combining
in groups are:
Age
Balance of book value at end of term
Amount Ratio (%) Bad debt
provision Net amount
Over 3 yrs 144,843,762.82 30.42% 79,247,608.97 65,596,153.85
Total 144,843,762.82 30.42% 79,247,608.97 65,596,153.85
Age
Balance of book value at beginning of term
Amount Ratio (%) Bad debt
provision Net amount
Over 3 yrs 155,514,020.19 34.33% 84,891,532.03 70,622,488.16
Total 155,514,020.19 34.33% 84,891,532.03 70,622,488.16
(6) The top 5 debtors of receivables:
Name of the
companies
Relation with the
Company
Amount at end
of term Age % in total
receivables
Shenzhen Greenview
Property Co., Ltd. Curtain wall client 52,535,169.41 within 1 yr 11.03%
Shanghai Baoye
Construction Co.,
Ltd.
Curtain wall client
21,221,934.73 1-2 yrs 4.46%
Dalian Hongjin
World Trade Center
Ltd.
Curtain wall client
8,431,940.86 1-2 yrs
4.03%
10,762,724.74 2-3 yrs
Shenzhen Civil
Construction Bureau
Curtain wall client
18,008,839.16 within 1 yr 3.78%
Shenyang Metro Co.,
Ltd.
Screen door client
17,841,057.10 within 1 yr 3.75%
Total 128,801,666.00 27.05%
(5) No outstanding receivable account due from shareholders with 5% or over of
the Company’s shares.
(4) Other account receivable
(1) Other account receivable classified as the following:
Categories
Balance of book value at end of term
Book value Bad debt provision
Net amount
Amount Ratio (%) Amount Providing rate
(%)
Other receivable
with major 38,081,185.93 46.01% 3,429,730.75 9.01% 34,651,455.1835
individual amount
No major amount
individually but with
great risk after
combined with
others with similar
credit risk
8,872,432.81 10.72% 5,513,726.15 62.14% 3,358,706.66
Other minor other
receivables 35,818,267.18 43.27% 3,750,103.39 10.47% 32,068,163.79
Total 82,771,885.92 100.00% 12,693,560.29 15.34% 70,078,325.63
Categories
Balance of book value at beginning of term
Book value Bad debt provision
Net amount
Amount Ratio (%) Amount Providing rate
(%)
Other receivable
with major
individual amount
9,888,976.45 21.31% 1,775,193.60 17.95% 8,113,782.85
No major amount
individually but with
great risk after
combined with
others with similar
credit risk
12,224,133.32 26.35% 7,216,811.58 59.04% 5,007,321.74
Other minor other
receivables 24,284,729.69 52.34% 2,495,935.19 10.28% 21,788,794.50
Total 46,397,839.46 100.00% 11,487,940.37 24.76% 34,909,899.09
Note 1: Single other receivable over RMB1 million is recognized as “single other receivable
account with mass amount”.
Note 2: Foreign currencies are:
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
Exchang
e rate
Translated to
RMB
USD 142,418.00 6.7909 967,146.4 142,418.00 6.8282 972,458.59
Total 142,418.00 6.7909 967,146.4 142,418.00 6.8282 972,458.59
(2) Other receivable accounts demonstrated by ages:
Age
Balance of book value at end of term
Amount Ratio (%) Bad debt
provision Net amount
within 1 year 58,300,419.41 70.44% 1,816,769.35 56,483,650.06
1-2 yrs (included) 5,541,717.54 6.70% 554,675.65 4,987,041.89
2-3 yrs (included) 4,744,767.12 5.73% 1,798,583.86 2,946,183.26
Over 3 yrs 14,184,981.85 17.13% 8,523,531.43 5,661,450.43
Total 82,771,885.92 100.00% 12,693,560.29 70,078,325.63
Age
Balance of book value at beginning of term
Amount Ratio (%) Bad debt
provision Net amount
within 1 year 18,426,424.10 39.71% 618,149.44 17,808,274.6636
1-2 yrs (included) 9,407,764.76 20.28% 892,240.53 8,515,524.23
2-3 yrs (included) 5,648,474.54 12.17% 2,069,696.08 3,578,778.46
Over 3 yrs 12,915,176.06 27.84% 7,907,854.32 5,007,321.74
Total 46,397,839.46 100.00% 11,487,940.37 34,909,899.09
(3) Bad debt provisions on other receivables with minor amount but examined
individually are:
Description of
other receivables
Book value at end
of term Bad debt provision Rate Reason
Contract security
receivable
3,151,698.00 94,550.94 3.00% Provided on age
Contract security
receivable
2,711,671.00 271,167.10 10.00% Provided on age
Contract security
receivable
1,500,000.00 150,000.00 10.00% Provided on age
Borrowed by
employees
1,305,290.61 39,158.72 3.00% Provided on age
Deposite
receivable
1,220,316.84 1,220,316.84 100.00%
Aged over 5
years, not
expectable to be
retrieved
Deposite
receivable
300,000.00 300,000.00 100.00%
Aged over 5
years, not
expectable to be
retrieved
Deposite
receivable
159,800.00 159,800.00 100.00%
Aged over 5
years, not
expectable to be
retrieved
Total 10,348,776.45 2,234,993.60
Note 1. Other receivable accounts being provided full bad debt provisions are
totaled to RMB3,449,391.72.
Note 2: Minor single other receivable but with greater risks after combined in
groups are:
Age
Balance of book value at end of term
Amount Ratio (%) Bad debt provision Net amount
Over 3 yrs 8,872,432.81 100.00% 5,513,726.15 3,358,706.66
Total 8,872,432.81 100.00% 5,513,726.15 3,358,706.66
Age
Balance of book value at beginning of term
Amount Ratio (%) Bad debt provision Net amount
Over 3 yrs 12,224,133.32 100.00% 7,216,811.58 5,007,321.7437
Total 12,915,176.06 100.00% 7,907,854.32 5,007,321.74
(4) Other top 5 debtors of other receivables:
Name of the
companies Specification
Relation
with the
Company
Amount at
end of term Age
Portion in total
other receivable
accounts (%)
Nanchang High-tech
Industry Zone
Administration
Committee
Land
compensation
Government 30,604,300.00 within 1
year
36.97%
Xinba Construction
Group Co., Ltd.
Contract
security
Normal
client
1,500,000.00 2-3 yrs
1.81%
China Merchants
Future Brokerage
Ltd.
Contract
security
Future
company
1,364,937.50 2-3 yrs
1.65%
Xin Song
Current account
Normal
client
1,305,290.61 within 1
year 1.58%
Nanhai Huangqi
Xinde Metal Co.,
Ltd.
Deposit
Normal
client
1,220,316.84 Over 3 yrs
1.47%
Total 35,994,844.95 43.48%
(5) No outstanding other receivable due from shareholders with 5% or over of
the Company’s shares.
(6) Other receivable account increased by 73.97% in the report term. Which was
caused by engaging of the Land Retrieving Compensation Agreement by Fangda Aluminum
and Nanchang High-tech Industry Zone Administration Committee to retrieve the land under
possession of Aluminum Co. amounted to RMB30.6043 million. As of the end of report term,
the Land Retreiving Agreement has been engaged with Nanchang State Land Resource Bureau
and the deregistration procedures have been completed and the compensation income of
RMBRMB30.6043 million was recognized.
(5) Prepayment
(1) Demonstrated by ages:
Age
Balance of book value at end of term
Amount Ratio (%) Bad debt
provision Net amount
within 1 year 34,322,844.01 94.02% 34,322,844.01
1-2 yrs (included) 1,370,825.21 3.76% 103,516.08 1,267,309.13
2-3 yrs (included) 764,736.53 2.09% 172,864.55 591,871.98
Over 3 yrs 45,920.00 0.13% 18,420.00 27,500.0038
Total 36,504,325.75 100.00% 294,800.63 36,209,525.12
Age
Balance of book value at beginning of term
Amount Ratio (%) Bad debt
provision Net amount
within 1 year 13,004,308.18 85.83% 13,004,308.18
1-2 yrs (included) 1,311,734.25 8.66% 103,516.08 1,208,218.17
2-3 yrs (included) 788,529.49 5.21% 182,074.55 606,454.94
Over 3 yrs 45,920.00 0.30% 9,210.00 36,710.00
Total 15,150,491.92 100.00% 294,800.63 14,855,691.29
Note: The book balance of prepaid account has increased by 143.74% over the report term,
which was caused by prepayment for goods and services by Fangda New Material and Fangda
Decoration.
(2) Other top 5 debtors of prepayments:
Name of the companies
Relation
with the
Company
Balance of
book value at
end of term
% in total
prepayment
Date of
prepayment
Reason of
unsettled
Henan Yongtong Aluminum
Co., Ltd.
Suppliers
5,409,187.12 14.94%
2010 Prepayment
Hainan Haibo Engineering
Glass Co., Ltd.
Suppliers
1,973,159.05 5.45%
2010 Prepayment
Qinghuangdao Wanxiang
Aluminum Co., Ltd.
Suppliers
1,070,751.02 2.96%
2009 Not settled
yet
Shenzhen Zhong’an Lianfa
Labor Service Co., Ltd.
Suppliers
1,056,840.20 2.92%
2010 Prepayment
Nantong Desheng
Construction Labor Service
Co., Ltd.
Suppliers 800,000.00 2.21% 2010 Prepayment
Total 10,309,937.39 28.47%
(3) No prepayment made to shareholders of the Company with 5% or above shares nor
related parties.
(6) Inventories
(1) Details of inventories
Items
Balance of book value at end of term Balance of book value at beginning of term
Amount Impairment
provision Book value Amount Impairment
provision Book value
Raw
materials 32,650,759.44 251,597.62 32,399,161.82 35,430,35089 251,597.62 35,178,753.27
Product in
process 22,011,697.44 22,011,697.44 27,736,524.94 27,736,524.94
Finished
goods in
stock
11,368,330.37 2,403,628.51 8,964,701.86 12,536,270.68 2,976,824.18 9,559,446.50
Asset
formed by 162,499,359.18 162,499,359.18 124,248,114.46 124,248,114.4639
Items
Balance of book value at end of term Balance of book value at beginning of term
Amount Impairment
provision Book value Amount Impairment
provision Book value
construction
contract
Low price
consumable 1,243,292.96 114,436.50 1,128,856.46 1,715,433.83 114,436.50 1,600,997.33
OEM
materials 686,124.00 686,124.00 148,596.08 148,596.08
On-road
goods 2,301,238.67 2,301,238.67 498,215.88 498,215.88
Total 232,760,802.06 2,769,662.63 229,991,139.43 202,313,506.76 3,342,858.30 198,970,648.46
Note: Book value of inventory increased by 15.59% over the report term, which
was caused by expanding of business scale and increase of assets formed by
construction contracts.
(2) Change of inventory impairment provisions
Categories
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
Raw materials 251,597.62 251,597.62
Products in stock 2,976,824.18 573,195.67 2,403,628.51
Low price consumable 114,436.50 114,436.50
Total 3,342,858.30 573,195.67 2,769,662.63
(3) Basis of providing impairment provision and situation of writing back
Categories Basis of providing impairment
provision
Reason of written off
of inventory
impairment provision
% of the written
off amount on
the balance of
inventory
Products in stock Realizable net value lower than
realizable cost
Dispose of inventory
goods 0.25%
(7) Other current asset
Items Balance of book
value at end of term
Balance of book
value at
beginning of
term
Change of fair value generated by future option contract
(Note 1) 3,315,075.00
Total 3,315,075.00
Note 1: Fair value of the future contracts decreased by RMB3,315,075.00 which
was caused by disposal of future contracts by Fangda Decoration and Fangda New40
Material.
(8) Disposable financial asset
Disposable financial assets are categorized as the following:
Items Fair value at end of term Fair value at beginning of term
Disposable bonds
Disposable equity instruments 3,150,000.00 7,520,445.42
Others
Total 3,150,000.00 7,520,445.42
Less: impairment provision for
disposable financial assets
Net amount 3,150,000.00 7,520,445.42
Note 1: The disposable financial asset is the 700,000 current shares of Tianjing Global
Magnetic Card Co., Ltd.
Note 2. Balance of disposable financial assets has decreased by RMB4,370,445.42, which
was caused by disposing of most of the sellable financial assets by Fangda Decoration.
(9) Long-term share equity investment
Long-term equity investment:
Company
invested in
Calculating
basis Initial costs
Balance of book
value at
beginning of term
Changed this
term (- for
decrease)
Balance of book
value at end of
term
Nanchang Fangda
Property Co., Ltd. Equity basis 3,000,000.00 2,997,216.45 2,997,216.45
Total 2,997,216.45 2,997,216.45
Company
invested in
Share
proportion
(%)
Voting rights (%) Impairment
provision
Impairment
provision
provided this
term
Cash dividend of
the current term
Nanchang Fangda
Property Co., Ltd. 30.00% 30.00%
Total
Note 1: On March 26, 2010, the Shareholders’ Meeting has decided to close Nanchang
Fangda Property Co., Ltd. As of June 30, 2010, the authorities of local government have received
the closing application.
(10)Investment properties
(1) Change of investment properties on fair value basis
Items
Fair value at
beginning of
term
Increased this term Decreased this term
Fair value at
Purchased end of term
For own use
or
transferred
from
inventory
Gain/loss
from change
of fair value
Disposed Transferred
for own use
I. Total
costs 192,194,554.27 192,194,554.2741
Items
Fair value at
beginning of
term
Increased this term Decreased this term
Fair value at
Purchased end of term
For own use
or
transferred
from
inventory
Gain/loss
from change
of fair value
Disposed Transferred
for own use
1. Houses &
buildings 192,194,554.27 192,194,554.27
2. Land
using rights
II. Total of
fair value
fluctuation
67,303,124.53 6,553,456.32 73,856,580.85
1. Houses &
buildings 67,303,124.53 6,553,456.32 73,856,580.85
2. Land
using rights
III. Total of
investment
property
book value
259,497,678.80 6,553,456.32 266,051,135.12
1. Houses &
buildings 259,497,678.80 6,553,456.32 266,051,135.12
2. Land
using rights
Note 1: Among the investment properties, Fangda Technical Building, dormitory
block, and the whole workshop (with book value of RMB224,250,888.56) have been put
into pledge. For details please see Note V (17).
(11)Fixed assets
(1) Change of fixed assets and accumulated depreciations:
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 value of original fixed
assets 470,075,737.67 1,730,697.74 49,176,212.66 422,630,222.75
1. Houses & buildings 197,603,625.83 22,452,342.40 175,151,283.43
2. Machinery 230,579,019.59 212,464.45 24,662,202.42 206,129,281.62
3. Automobile 10,247,988.14 1,010,297.00 178,148.82 11,080,136.32
4. Electronics and other devices 31,645,104.11 507,936.29 1,883,519.02 30,269,521.38
II. Total of accumulative
depreciation 209,251,062.47 8,978,617.31 30,732,890.90 187,496,788.88
1. Houses & buildings 30,114,317.90 2,333,234.90 8,152,088.45 24,295,464.35
2. Machinery 153,187,518.51 5,547,574.09 20,989,046.31 137,746,046.29
3. Automobile 6,547,093.93 255,913.85 49,213.92 6,753,793.86
4. Electronics and other devices 19,402,132.13 841,894.47 1,542,542.22 18,701,484.38
IV. Total of accumulative fixed
assets impairment provision 1,574,623.88 177,227.79 1,397,396.0942
Items
Balance of
book value at
beginning of
term
Increased this
term
Decreased
this term
Balance of
book value at
end of term
1. Houses & buildings
2. Machinery 1,574,623.88 0.00 177,227.79 1,397,396.09
3. Automobile
4. Electronics and other devices
V. Total of fixed asset book
value 259,250,051.32 -7,247,919.57 18,266,093.97 233,736,037.79
1. Houses & buildings 167,489,307.93 -2,333,234.90 14,300,253.95 150,855,819.09
2. Machinery 75,816,877.20 -5,335,109.64 3,495,928.32 66,985,839.24
3. Automobile 3,700,894.21 754,383.15 128,934.90 4,326,342.46
4. Electronics and other devices 12,242,971.98 -333,958.18 340,976.80 11,568,037.00
Note 1: Depreciation provided this term was RMB8,978,617.31.
Note 2: The original value of fixed asset has decreased by RMB49,176,212.66 over the report
term, which was caused by retrieving of land by Nanchang State Land Resource Administration
Bureau and disposal of fixed assets.
(2) Property license not obtained yet:
Categories Description of
property
Original book
value
Accumulated
depreciation:
Net book
value Note
Houses &
buildings Office building 18,643,357.07 2,023,386.34 16,619,970.73 Used by Fangda New
Material, under
procedures of
property certificate
Houses &
buildings
Employees’
dinning hall 2,857,833.06 324,428.75 2,533,404.31
Houses &
buildings dormitory 3,801,544.09 443,517.58 3,358,026.51
Houses &
buildings
Houses in
Urumuqi 686,672.00 34,333.50 652,338.50
Idle, under
procedures of
property certificate
Houses &
buildings
Multi-function
building 4,095,350.26 1,391,934.31 2,703,415.95 Under procedures of
property certificate
Houses &
buildings
Office building 6,769,642.00 2,328,628.24 4,441,013.76 Under procedures of
property certificate
Houses &
buildings
Workshop B-1 18,966,977.90 4,315,057.90 14,651,920.00 Under procedures of
property certificate
Houses &
buildings
Workshop B-2 6,495,786.15 1,477,815.23 5,017,970.92 Under procedures of
property certificate
Total 62,317,162.53 12,339,101.85 49,978,060.68
(12)Construction in process
（1） Details of construction in process
Items Balance of book value at end of term Balance of book value at beginning of term
Amount Impairment Net book Amount Impairment Net book43
Items Balance of book value at end of term Balance of book value at beginning of term
provision value provision value
Shenyang Fangda
Extension Chip
Workshop (Phase I)
9,532,766.82 9,532,766.82 9,496,386.82 9,496,386.82
Dinning hall and
pulping house
2,350,547.03 2,350,547.03 1,747,637.25 1,747,637.25
Heating pipe 1,713,004.80 1,713,004.80 1,713,004.80 1,713,004.80
Dormitory and No.2
workshop
3,139,367.00 3,139,367.00 712,074.20 712,074.20
Phase I pipes, roads,
and fence 2,360,000.00 2,360,000.00
Decoration of
super-clean
workshop 3,066,000.00 3,066,000.00
Shenyang Fangda
other construction
cost 5,292,736.89 5,292,736.89 4,138,314.14 4,138,314.14
Equipment to be
installed 986,488.00 986,488.00 520,539.81 520,539.81
Demostration room 241,762.82 241,762.82
Jiangxi Tech Garden
Epoxy Floor 1,014,848.00 1,014,848.00
Jiangxi Tech Garden
Glass Gluing House 227,253.36 227,253.36
Workshop
reconstruction 382,557.21 382,557.21
Other small projects 303,410.18 303,410.18
Total 30,610,742.11 30,610,742.11 18,327,957.02 18,327,957.02
Note: Book value of construction in process increased by 67.02% over the report
term, which was caused by increase of project expense made by Shenyang Fangda.
（2） Profile of major construction in process and changes
Project Budget
Fund
recourse
Initial ammount Increased this term
Amount
Incl. Interest
capitalization Amount
Incl. Interest
capitalization
Shenyang Fangda
Extension Chip
Workshop (Phase I) 9,000,000.00 Independent 9,496,386.82 36,380.00
Dinning hall and
pulping house 3,680,000.00 Independent 1,747,637.25 602,909.78
Heating pipe 1,713,000.00 Independent 1,713,004.80
Dormitory and No.2 7,800,000.00 Independent 712,074.20 2,427,292.8044
workshop
Phase I pipes, roads,
and fence 9,000,000.00 Independent 2,360,000.00
Decoration of
super-clean
workshop 7,680,000.00 Independent 3,066,000.00
Shenyang Fangda
other construction
cost 4,138,314.14 1,154,422.75
Jiangxi Tech Garden
Epoxy Floor 1,740,000.00 1,014,848.00
(Continue)
Project
Decreased this term Balance at end of year
Progress %
% of
investment
Amount on budget
Incl.
Transferred to
fixed asset
this term Amount
Incl. Interest
capitalization
Shenyang Fangda
Extension Chip
Workshop (Phase I)
9,532,766.82 100% 106%
Dinning hall and
pulping house 2,350,547.03 65% 64%
Heating pipe 1,713,004.80 100% 100%
Dormitory and No.2
workshop 3,139,367.00 40% 40%
Phase I pipes, roads,
and fence 2,360,000.00 26% 26%
Decoration of
super-clean workshop 3,066,000.00 40% 40%
Shenyang Fangda
other construction cost 5,292,736.89
Jiangxi Tech Garden
Epoxy Floor 1,014,848.00 58% 58.32%
(3) No impairment with the construction in process at end of report term.
(13)Intangible assets and development expenses
(1) Profiles of intangible assets
Items
Balance of book
value at beginning
of term
Increased this term Decreased this
term
Balance of book
value at end of
term45
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 98,563,747.49 1,205,681.37 4,985,227.00 94,784,201.86
Land using rights of Fangda Town
(Phase I) (Note 2) 8,543,250.00 8,543,250.00
Land using rights of Fangda Town
(Phase II) (Note 3) 4,783,050.00 4,783,050.00
Land using rights of Nanchang
High Tech Zone (Note 4) 4,985,227.00 4,985,227.00
Land using rights of Fangda Tech
Garden on Gaoxin Road Nanchang 11,064,548.41 11,064,548.41
Land using rights of Shenyang
Fangda (Note 6) 42,038,791.23 42,038,791.23
Semi-conductor patent 18,241,179.14 18,241,179.14
Other non-patent tech 4,413,899.39 4,413,899.39
Other patents 1,304,355.00 60,010.00 1,364,365.00
Computer software 2,555,523.72 1,145,671.37 3,701,195.09
Others 633,923.60 633,923.60
II. Total of intangible asset
amortization 20,094,433.57 2,068,702.68 1,106,237.92 21,056,898.33
Land using rights of Fangda Town
(Phase I) (Note 2) 3,756,136.40 72,715.68 3,828,852.08
Land using rights of Fangda Town
(Phase II) (Note 3) 1,235,621.25 47,830.50 1,283,451.75
Land using rights of Nanchang
High Tech Zone (Note 4) 1,098,157.40 8,080.52 1,106,237.92
Land using rights of Fangda Tech
Garden on Gaoxin Road Nanchang 965,931.56 116,298.84 1,082,230.40
Land using rights of Shenyang
Fangda (Note 6) 1,744,678.50 420,417.90 2,165,096.40
Semi-conductor patent 7,741,700.89 956,135.93 8,697,836.82
Other non-patent tech 1,512,675.29 157,784.42 1,670,459.71
Other patents 420,979.71 86,850.26 507,829.97
Computer software 1,028,286.62 201,396.13 1,229,682.75
Others 590,265.95 1,192.50 591,458.45
III. Total of book net value of
intangible assets 78,469,313.92 -863,021.31 3,878,989.08 73,727,303.53
Land using rights of Fangda Town
(Phase I) (Note 2) 4,787,113.60 -72,715.68 4,714,397.92
Land using rights of Fangda Town
(Phase II) (Note 3) 3,547,428.75 -47,830.50 3,499,598.25
Land using rights of Nanchang
High Tech Zone (Note 4) 3,887,069.60 -8,080.52 3,878,989.08
Land using rights of Fangda Tech
Garden on Gaoxin Road Nanchang 10,098,616.85 -116,298.84 9,982,318.01
Land using rights of Shenyang
Fangda (Note 6) 40,294,112.73 -420,417.90 39,873,694.83
Semi-conductor patent 10,499,478.25 -956,135.93 9,543,342.32
Other non-patent tech 2,901,224.10 -157,784.42 2,743,439.68
Other patents 883,375.29 -26,840.26 856,535.03
Computer software 1,527,237.10 944,275.24 2,471,512.34
Others 43,657.65 -1,192.50 42,465.1546
Items
Balance of book
value at beginning
of term
Increased this term Decreased this
term
Balance of book
value at end of
term
IV. Total of accumulated
intangible asset impairment
provisions
V. Total of intangible asset
book value 78,469,313.92 -863,021.31 3,878,989.08 73,727,303.53
Land using rights of Fangda Town
(Phase I) (Note 2) 4,787,113.60 -72,715.68 0.00 4,714,397.92
Land using rights of Fangda Town
(Phase II) (Note 3) 3,547,428.75 -47,830.50 0.00 3,499,598.25
Land using rights of Nanchang
High Tech Zone (Note 4) 3,887,069.60 -8,080.52 3,878,989.08 0.00
Land using rights of Fangda Tech
Garden on Gaoxin Road Nanchang 10,098,616.85 -116,298.84 0.00 9,982,318.01
Land using rights of Shenyang
Fangda (Note 6) 40,294,112.73 -420,417.90 0.00 39,873,694.83
Semi-conductor patent 10,499,478.25 -956,135.93 0.00 9,543,342.32
Other non-patent tech 2,901,224.10 -157,784.42 0.00 2,743,439.68
Other patents 883,375.29 -26,840.26 0.00 856,535.03
Computer software 1,527,237.10 944,275.24 0.00 2,471,512.34
Others 43,657.65 -1,192.50 0.00 42,465.15
Note 1: RMB2,068,702.68 amortized in the report term.
Note 2: In 1995, Hengxiang Jingfa Co. inputted 3,797.40 square meters of land valued
RMB8,543,250.00 to the Company when the Company was incorporated. The land was verified
by Shenzhen Asset Appraisal Firm with the appraisal report 深资综评报字[1995]第20 号to
value of RMB8,543,250.00. This land rights have been recognized as collateral for loans. For
details please see Note V (17).
Note 3: According to contract 深地合字(97)012 号engaged between the Company and
Shenzhen Bureau of Land Planning, the Company purchased the land using rights attached to land
of 15,943.60 square meters with Ref. number T405-008 by RMB4,783,050.00. This land was
recognized as collateral for loans. For details please see Note V (17).
Note 4: In January 2010, Fangda Aluminum engaged the Land Retrieving Agreement with
Jiangxi Nanchang High-tech Industry Zone Administration Committee, by which the land of
17,424.05 square meters located to the north of initial zone will be retrieved with compensation of
RMB30.6043 million.
Note 5: In March 2003, according to the contract engaged between Jiangxi Nanchang
High-tech Industry Zone Administration Committee and the Company, Fangda New Material Co.,
Ltd. had purchased the land of 177,047.14 square meters to the west of Aixi Lake and north of
Gaoxin Road, with price of RMB10,622,828.28.
Note 6: Shenyang Hunnan New Zone State Asset Administration Co., Ltd. inputted
the land HNG0707 号F45 号to Shenyang Fangda Co., Ltd. as investment. The property
transferring procedures have been completed and verified by Liaoning Jiexinyuan CPA47
Ltd. by verification report 辽捷信源验〔2007〕G0142 号. This land was acquired from
the bidding offer by Shenyang Bureau of Land Planning Hunnan Office, and was notified
by Shenyang Nunnan New Zone Notification Office.
(2) R&D expenses
A. R&D expenses in the report term:
Items Total of R&D
expenses
In which:
Expenses
in
research
stage
Expenses in developing stage
to current
income
Capitalized
expenses
Graphic grounding technologies 346,968.80 346,968.80
Solar-electric glass wall project 49,202.67 49,202.67
Screen door control system
maintaining service 13,340.40 13,340.40
Screen door locker 10,634.34 10,634.34
Full height suspension screen
door structure 10,999.41 10,999.41
Electric motor selection and new
control system of screen door 720,363.58 304,046.92 416,316.66
Optical crystal manufacturing
tech 695,444.97 470,593.26 224,851.71
The 3rd generation of PSD
electronic lock 964,049.87 964,049.87
Cart door 116,363.26 1,917.19 114,446.07
Electric motor and control
system of belt drive full-height
door 783,547.83 783,547.83
Continuous development of DCU 31,796.34 31,796.34
非对称丝杠传动屏蔽门4,309.20 4,309.20
Belt drive semi-height PSD 4,467.06 4,467.06
Belt drive full-height PSD 4,248.36 4,248.36
Total 3,755,736.09 3,000,121.65 755,614.44
B. Change of R&D expenses
Items
Balance of
book value
at beginning
of term
Increased
this term
Decreased this term Balance of
book value
at end of
term
Transferred
into
intangible
assets
Other
decreases48
Graphic grounding
technologies 346,968.80 346,968.80
Solar-electric glass wall
project 485,441.00 49,202.67 9,200.00 49,202.67 476,241.00
Screen door control
system maintaining
service 13,340.40 13,340.40 -
Screen door locker 10,634.34 10,634.34 -
Full height suspension
screen door structure 10,999.41 10,999.41 -
Electric motor selection
and new control system
of screen door 225,963.00 720,363.58 304,046.92 642,279.66
Optical crystal
manufacturing tech 474,495.73 695,444.97 470,593.26 699,347.44
The 3rd generation of
PSD electronic lock 964,049.87 964,049.87 -
Cart door 116,363.26 1,917.19 114,446.07
Electric motor and
control system of belt
drive full-height door 783,547.83 783,547.83 -
Continuous development
of DCU 31,796.34 31,796.34 -
非对称丝杠传动屏蔽门4,309.20 4,309.20 -
Belt drive semi-height
PSD - 4,467.06 - 4,467.06 -
Belt drive full-height
PSD - 4,248.36 - 4,248.36 -
Total 1,185,899.73 3,755,736.09 9,200.00 3,000,121.65 1,932,314.17
Note 1: Development expenses decreased by RMB3,000,121.65, which was caused by
treatment of expenses not fit in capitalization conditions.
Note 2: Development expenses accounted for 100% of the total R&D expenses.
Note 3: Intangible asset formed by R&D accounted for 15.82% of the total intangible assets.
(14)Goodwill
Name of the Companies
Balance of
book value
at beginning
of term
Increased
this term
Decreased
this term
Balance of
book value
at end of
term
Impairment
provision at
end of term
Shenzhen Woke 8,197,817.29 8,197,817.29
Fangda Yide Co. 746,519.62 746,519.62
Total 8,944,336.91 8,197,817.29 746,519.6249
Note 1: The Company acquired the 100% control power over Shenzhen Woke Co. by merger
of enterprise under common control in May 2007. The difference between the initial investment
cost and recognizable fair value of the investee has formed the goodwill of RMB8,197,817.29. No
evidence of impairment occurred to Shenzhen Woke Co. thus no impairment provision was
provided.
Note 2: The Company acquired the minority share equities of Fangda Yide Co. in August
2007. The difference between the initial investment cost and recognizable fair value of the
investee has formed the goodwill of RMB746,519.62. For Fangda Yide was not in good business
operation for successive years, impairment provision has been provided fully upon the goodwill.
(15)Differed income tax asset and differed income tax liabilities
（1） Differed income tax asset already recognized
Items
Balance of book value at end of term Balance of book value at beginning of
term
Deductible
provisional
differences
Differed income
tax asset
Deductible
provisional
differences
Differed income
tax asset
Asset impairment
provision 146,756,167.50 24,748,506.21 146,723,770.88 24,653,606.05
Openning expenses
Neutralizable losses 50,271,627.02 10,863,155.92 46,163,065.76 9,934,646.80
Change of fair value
caused by share
option contracts
1,648,500.00 217,125.00
Total 198,676,294.52 35,828,787.13 192,886,836.64 34,588,252.85
（2） Differed income tax liabilities recognized:
Items
Balance of book value at end of term Balance of book value at beginning of
term
Taxable
provisional
difference
Differed income
tax liability
Taxable
provisional
difference
Differed income
tax liability
Adjustment of
investment property
fair value
105,124,829.60 24,989,790.27 96,269,231.58 20,996,296.96
Adjustment of
sellable financial
asset fair value
2,750,000.00 660,000.00 6,266,355.88 1,156,702.15
Change of fair value
caused by share
option contracts
3,315,075.00 469,908.25
Total 107,874,829.60 25,649,790.27 105,850,662.46 22,622,907.36
Note: Income tax liabilities recognized has increased over the report term,
which was caused by provisional difference of tax payable caused by change of fair50
value of investment properties.
(3) Particulars about neutralizable provisional difference or losses by
non-recognized differed income tax assets
Items End of term Beginning of term
Asset impairment provision 25,210,401.76 26,140,605.99
Neutralizable losses 62,748,863.82 66,043,811.35
Total 87,959,265.58 92,184,417.34
(4) Neutralizable losses of non-recognized differed income tax assets will due
in following years:
Year End of term
2010 5,682,547.36
2011 13,910,672.17
2012 17,023,935.45
2013 21,626,494.92
2014 4,505,213.92
Total 62,748,863.82
Note: No termination in advance considered in above chart.
(16)Asset impairment provision
Items
Balance of
book value at
beginning of
term
Increased
this term
Decreased this term Balance of
book value at
end of term
Written
back Transferred
Bad debt provision 131,195,667.98 1,807,887.71 953,277.19 132,050,278.50
Inventory impairment
provision 3,342,858.30 573,195.67 2,769,662.63
Fixed asset
impairment provision 1,574,623.88 177,227.79 1,397,396.09
Impairment provision
of intangible asset
Goodwill impairment
provision 746,519.62 746,519.62
Others
Total 136,859,669.78 1,807,887.71 953,277.19 750,423.46 136,902,241.45
Note: Neutralization of inventory impairment provision and fixed asset impairment provision
was caused by sales of finished products and fixed assets.
(17)Assets with constrained ownership
Assets with constrained ownership are:
Category of
Balance of book
value at beginning
Increased this
Decreased
this term
Balance of book
value at end of
Reason of51
assets
of term
term
term
limitation
Asset under guarantee
Fangda Tech
Building (The
part for rent)
175,985,595.72 4,269,192.84 180,254,788.56 Loan
pledge
Whole
dormitory
building
12,063,200.00 459,200.00 12,522,400.00 Loan
pledge
Whole special
workshop 30,686,800.00 786,900.00 31,473,700.00 Loan
pledge
Fangda Tech
Building (The
part for own
use)
13,549,797.96 75,415.57 13,474,382.39 Loan
pledge
Fangda Town
land using right
(Phase I)
4,787,113.60 72,715.68 4,714,397.92 Loan
pledge
Fangda Town
land using right
(Phase III)
3,547,428.75 47,830.50 3,499,598.25 Loan
pledge
Total 240,619,936.03 5,515,292.84 195,961.75 245,939,267.12
Note: Fangda Tech Building (part for rent), dormitory block, and workshop are investment
property accounted at fair value, the change was mainly the fluctuation of fair value.
(18)Short-term loans
Short-term loans are:
Categories Balance of book
value at end of term
Balance of book value
at beginning of term Note
Borrowings with security and
guarantee 210,000,000.00 210,000,000.00 Note 1
Guarantee loan 170,000,000.00 160,000,000.00 Note 2
Loan from discount of notes
Total 380,000,000.00 370,000,000.00
Note 1: The short-term borrowing of RMB210 million was secured by Fangda Tech Building
(part for rent), dormitory block, workshops, and land using rights (phase I and III) of Fangda
Town, and guaranteed by Fangda Decoration, Fangda Automatic, and Fangda New Material.
Note 2: In the guaranteed loans, RMB120 million was the short term loans obtained by
Fangda New Material and secured by the Company; the rest RMB50 million was the short term
loans obtained by Fangda Decoration and secured by the Company. For details please go to Note
VI (II).
(19)Notes payable
Categories Balance of book value at end of
term
Balance of book value at
beginning of term
Bank acceptance 40,340,505.65 24,166,495.62
Commercial acceptance
Total 40,340,505.65 24,166,495.62
Note 1: Amount due in next fiscal term will be RMB40,340,505.65.52
Note 2: The outstanding book value of notes payable has increased by 66.93% over the report
term, which was caused by payment for materials in term of bank notes issued by Fangda New
Material and Fangda Automatic.
Note 3: The bank notes of RMB9.66 million endorsed by New Material Co. to Hennan
Yongtong Aluminium will due on October 23, 2010.
(20)Account payable
(1) As of June 30, 2010, large amount payable accounts aged over one year:
Suppliers Amount Description Reason of overdue
Fangda Building provisional booking 1,278,967.69 Project
payment
Not claimed by the
creditor
Deawoo Group (South Korea) 900,000.00 Trade Not claimed by the
creditor
Fujian Quanzhou Sansong Ceramic
Development Co., Ltd. 880,000.00 Trade Not claimed by the
creditor
Total 3,058,967.69
(2) No payables due to shareholders with 5% or above shares of the Company, nor any
related parties.
(21)Prepayment received
(1) As of June 30, 2010, major prepaid accounts due over one year are:
Client Amount Description Causation of not
settled
Shenzhen Metro Co., Ltd. 23,332,333.37 Project payment Service not
provided yet
China Jiangxi International Economic &
Technical Cooperation Co., Ltd. 2,375,366.87 Deposit for
goods
Part of the goods
are not delivered
Total 25,707,700.24
(2) No prepayment received from shareholders with 5% or over shares of the Company, nor
related parties.
(22)Employees’ wage payable
Details of remunerations payable to the employees
Items
Balance of book
value at
beginning of
term
Increased this
term
Decreased this
term
Balance of
book value at
end of term
Wage, bonus, allowance and
subsidies 90,454.15 30,779,076.75 30,868,048.90 1,482.00
Employee welfare 327,833.07 327,833.07
Social insurance 2,223,983.36 2,223,983.36
Incl. Medical insurance 488,752.69 488,752.69
Basic pension 1,555,659.50 1,555,659.50
Unemployment insurance 17,804.60 17,804.60
Labor injury insurance 141,142.57 141,142.5753
Breeding insurance 20,624.00 20,624.00
Housing fund 0.00 0.00
Dismissing policy 0.00 0.00
Trade union and education
allowance 4,493,471.78 41,598.01 152,408.33 4,382,661.46
Non-monetary welfare
Compensations for
disengagement other than
dismissing policy
Others
Total 4,583,925.93 35,596,474.55 35,796,257.02 4,384,143.46
(23)Tax payable
Items Balance of book value at end of term Balance of book value at beginning
of term
VAT 132,329.22 1,128,944.61
Business tax 15,532,485.13 16,061,526.33
Enterprise income tax 4,017,765.49 7,906,444.14
Personal income tax 474,053.79 347,197.18
City maintenance and
construction tax 1,697,702.28 1,694,844.15
Land using tax 235,615.07 663,284.89
Property tax 718,317.81 1,233,880.55
Education surtax 835,613.02 875,283.92
Other taxes 53,256.26 115,369.86
Total 23,697,138.07 30,026,775.63
(24)Interest payable
Items Balance of book value at end of term Balance of book value at beginning
of term
Short-term borrowing
interests payable 498,637.50 557,551.25
Total 498,637.50 557,551.25
(25)Other account payable
(1) No other payables due to shareholders with 5% or above of shares of the Company, nor
related parties.
(2) Other payables with large amount in detail:
Items Balance of book value at end
of term Description
Nanchang Fangda Property Co.,
Ltd. 3,003,798.17 Trade between related parties
Jiangsu Tianyi Garment Co., Ltd. 2,000,000.00 Project deposit54
Ningbo Lailai Energy-saving Doors
and Windows Co., Ltd. 2,060,000.00 Project deposit
Transportation 1,245,005.79 Freight drawn in advance
Shenzhen Yachang Color Printing
Co., Ltd. 950,000.00 Deposit
Total 9,258,803.96
(3) Large amount other payables aged over one year:
Items
Balance of book
value at end of
term
Description Reason of overdue
Ningbo Lailai Energy-saving
Doors and Windows Co., Ltd. 2,060,000.00 Project deposit construction in
process
Nanchang Fangda Property Co.,
Ltd. 3,003,798.17 Trade between
related parties
Not claimed by the
creditor
Total 5,063,798.17
(26)Other current liability
Items Balance of book
value at end of term
Balance of book
value at
beginning of term
Change of fair value caused by share option contracts 1,648,500.00
Total 1,648,500.00
Note: The balance of other current liability was the floating loss of future
contracts held by Fangda Decoration Co. and Fangda New Material Co.
(27)Other non-recurring liabilities
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 (Note 1) 1720,000.00 720,000.00
Optical crystal project (Note 2) 1,200,000.00 1,200,000.00
Environmental protection and energy
saving project (Note 3) 500,000.00 500,000.00
Graphic grounding production and
expanded chip production (Note 4) 500,000.00 500,000.00
Purchasing of equipment for
development of high-power chips
(Note 5) 800,000.00 850,000.00
Fund for optical products (Note 6) 480,000.00 480,000.00
Total 5,200,000.00 4,250,000.00
Note 1: According to document 粤科计字[2008]145 号issued by Guangdong Department
of Science and Technologies, and Guangdong Department of Finance on November 24, 2008,
Fangda Guoke was assigned to undertake the “demonstrative project of LED production
technologies” with the government fund of RMB3.5 million. According to the agreement
engaged between Fangda Guoke and Shenzhen Technologies and Information Committee on
January 12, 2010, and the contract 深科工贸信计财字〔2009〕82 号, Shenzhen Technologies and55
Information Committee will provide RMB1 million to support the project led by Fangda Guoke.
No government subsidy recognized in the report term. And the government subsidy recognized
was accumulated to RMB2,780,000.00 as of June 30, 2010.
Note 2: According to the contract engaged between Shenzhen Technologies and Information
Bureau and Fangda Guoke Co. (深科信（2009）202 号) in July 2009, the Bureau will provide
RMB1.2 million to Fangda Guoke to support the development of “photon crystal production
technologies”.
Note 3: According to the notice 沈新区委发（2009）52 号issued by Shenyang Hunnan New
Zone Administration Committee on August 26, 2009, the Committee provided RMB500 thousand
to Shenyang Fangda to support the energy-saving projects. No relative development expenses was
made in the report term yet.
Note 4: According to the notice 沈新区委发（2009）72 号issued by Shenyang Hunnan New
Zone Administration Committee on August 26, 2009, the Committee provided RMB500 thousand
to Shenyang Fangda to support the production technologies of graphic background and extension
and chips projects. No relative development expenses was made in the report term yet.
Note 5. According to document 深科信〔2005〕401 号, Shenzhen Bureau of Finance and
Fangda Guoke entered the “Contract on using of technical development fund”. As of December 31,
2008, Fangda Guoke has received the fund for purchasing of equipment in two payment amounted
to RMB1 million. In the report term, Fangda Guoke has recognized the government subsidy of
RMB50,000.00 against the expected useful life of the equipment and amortizing of intangible
assets. As of June 30, 2010, the government subsidy recognized was accumulated to
RMB200,000.00.
Note 6. According to document 沈信产发〔2008〕27 号issued by Shenyang Information
Industry Bureau and Shenyang Bureau of Finance on July 17, 2008, Shenyang Fangda received
RMB480 thousand of subsidy to support the production technologies of graphic background and
extension and chips projects. No related expenses were made by Shenyang Fangda in the report
term.
(28)Share capital
Change of capital shares:
Class of
shareholding
Balance of book value at
beginning of term Changed this term
Balance of book value at
end of term
Amount of
shares Proportion
Issuing of
new shares
Bonus
shares
Transferred
from
reserves Others Sub-total
Amount of
shares Proportion
I. Shares with
conditional
subscription
1. State-owned
shares
2. State legal
person shares
3. Other
domestic shares 65,073 0.02% 47,945,200 4,555 47,949,755 48,014,828 9.52%56
Incl.
Non-government
domestic legal
person shares 18,200,000 18,200,000 18,200,000 3.61%
Domestic
natural person
shares 65,073 0.02% 29,745,200 4,555 29,749,755 29,814,828 5.91%
4. Overseas
shareholding
Incl. Shares held
by foreign legal
persons
Foreign natural
person shares
Total of
conditional
shares 65,073 0.02% 47,945,200 4,555 47,949,755 48,014,828 9.52%
III. Shareholding
without
limitation to sell
1. RMB
common shares 217,405,903 50.94% 15,218,414 15,218,414 232,624,317 46.10%
2. Foreign
shares placed in
the country 209,315,383 49.04% 14,652,076 14,652,076 223,967,459 44.38%
3. Foreign
shares placed
abroad 0 0
4. Others 0 0
Total of
unconditional
shares 426,721,286 99.98% 29,870,490 29,870,490 456,591,776 90.48%
Total of capital
shares 426,786,359 100.00% 29,875,045 77,820,245 504,606,604 100.00%
Note 1: The Shareholders’ Annual Meeting held on February 27, 2010 approved the plan for
profit distribution and capitalizing of capital reserves for year 2009. Basing on the total capital
shares of 426,786,359 at present, 0.7 shares was about to be added to each 10 shares, totally
29,875,045 was about to be added with face value of RMB1. After the change, the registered
capital of the Company will be RMB456,661,404.00. This was approved by Shenzhen Trade and
Industry Bureau with document 深贸工资复〔2010〕1278 号. This change of share capital has
been verified by Shenzhen Nanfang Minhe CPA Co., Ltd. by the Verification Report of 深南验字
(2010)第186 号.
Note 2: On May 27, 2010, the Company was approved by China Securities Regulatory
Committee with document 证监许可[2010]720 号文to issue up to 100 million new A shares
privately. Basing upon the subscription situation and the procedures and rules as setout by
“Invitation of Private Share Subscription by China Fangda Group Co., Ltd.”, the amount of shares
to be issued was 47,945,200 and at price of RMB7.30 each. Totally RMB349,999,960.00 was
raised. The issuing fee was totaled to RMB14,614,888.27, and RMB47,945,200.00 was accounted
into share capital, and RMB287,439,871.73 into capital reserves.This was approved by Shenzhen
Trade and Industry Bureau with document 深贸工资复〔2010〕1680 号. On June 25, 2010, the
Company was granted the “Certificate for Overseas Chinese Invested Enterprise of PRC” 深圳市57
人民政府商外资资审A 字〔2000〕0025 号. This change of share capital has been verified by
Shenzhen Nanfang Minhe CPA Co., Ltd. by the Verification Report of 深南验字(2010)第197 号.
(29)Capital reserves
Change of capital reserves:
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 31,774,896.75 287,439,871.73 29,875,045.00 289,339,723.48
Other capital reserves 48,847,591.92 7,296,195.48 41,551,396.44
Total 80,622,488.67 287,439,871.73 37,171,240.48 330,891,119.92
Note 1: Capital reserves – share capital premium has increased by RMB287,439,871.73, for
details please see (28).
Note 2: Capital reserves – other capital reserves decreased by RMB7,296,195.48 which was
caused by transferring off of RMB2,694,453.18 for disposal of disposable financial assets by
Fangda Decoration. The floating loss of hedge instrument held by Fangda Decoration and Fangda
New Material were totaled to RMB4,601,742.3.
(30)Surplus reserves
Change of surplus reserves:
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 13,360,180.84 13,360,180.84
Total 13,360,180.84 13,360,180.84
(31)Retained profit
Change of retained profit:
Items Current term
Retained profit at end of last year 102,526,565.06
Plus: Adjusted amount of retained profit at beginning of year
(“-“ for decrease)
Retained profit at beginning of term
Plus: Net profit attributable to owners of the parent company 33,608,581.42
Attributable profit 136,135,146.48
Less: Statutory surplus reserves
Optional surplus reserves
Common risk provisions
Common share dividend payable
Common share dividend transferred to capital share
Retained profit at the end of term 136,135,146.4858
(32)Operational turnover and costs
(1) Details of business turnover and costs:
Items Occurred current term Amount occurred in
same period last year
Turnover 423,379,762.74 369,945,313.89
Incl. Main business turnover 401,760,236.81 350,638,619.01
Other business income 21,619,525.93 19,306,694.88
Operation cost 339,167,650.59 299,542,925.11
Incl. Main business cost 330,318,126.57 290,238,006.17
Other business cost 8,849,524.02 9,304,918.94
(2) Main business turnover classified on industries:
Name of industry
Occurred current term Amount occurred in
same period last year
Turnover Operation
cost Turnover Operation
cost
Metal production 325,621,513.69 261,964,502.91 334,284,109.81 272,112,582.12
Railroad industry 71,094,433.93 58,550,560.42 13,587,138.12 11,729,541.25
Lighting product
industry
5,044,289.18 9,803,063.24 2,767,371.08 6,395,882.80
Total 401,760,236.81 330,318,126.57 350,638,619.01 290,238,006.17
(3) Main business turnover distribution on products:
Products or services
Occurred current term Amount occurred in same
period last year
Turnover Operation
cost Turnover Operation cost
Glass wall products 262,032,844.14 206,882,304.89
241,704,924.43 208,406,919.30
Aluminum products 63,588,669.55 55,082,198.02 92,579,185.39
63,705,662.83
Metro screen door
products 71,094,433.93 58,550,560.42 13,587,138.12
11,729,541.25
LED products 5,044,289.18 9,803,063.24 2,767,371.07
6,395,882.80
Total 401,760,236.81 330,318,126.57 350,638,619.01 290,238,006.17
(3) Main business turnover distribution on districts:
Name of districts
Occurred current term Amount occurred in
same period last year
Turnover Operation
cost Turnover Operation
cost
Domestic 390,733,338.54
321,634,382.27
303,925,759.13 261,036,987.53
Overseas 11,026,898.27
8,683,744.30
46,712,859.88 29,201,018.64
Total 401,760,236.81 330,318,126.57 350,638,619.01 290,238,006.17
(5) Turnover from top five clients59
Name of clients Occurred current term Portion in total turnover
Shenzhen Greenview Property Co.,
Ltd. 67,007,039.04 15.83%
Hangzhou Qide Property Co., Ltd. 25,045,371.43 5.92%
Shenzhen Line 2, 1st phase 28,283,287.18 6.68%
Shenzhen Civil Construction Bureau 23,792,767.86 5.62%
Shenzhen Line 1 14,326,322.74 3.38%
Total 158,454,788.25 37.43%
(33)Contract project turnover
Gains of contract projects recognized in the report term accounted for over 10% of the total
operational income:
Project Total amount Accumulated
costs occurred
Accumulated
gross profit
recognized
(“-“ for loss)
Amount
settled
Predicted
loss
Cause
for
predicted
loss
Shenzhen
Greenview
Jiyuan 135,684,110.41 46,151,249.66 20,855,789.38 10,133,585.00
Total 135,684,110.41 46,151,249.66 20,855,789.38 10,133,585.00
(34)Business tax and surcharge
Class of tax Occurred current term Amount occurred in
same period last year Rate
Business tax 5,739,170.20 8,113,975.10 See Note III - 1
City maintenance and
construction tax 428,473.80 632,099.14 See Note III - 1
Property tax 423,369.34
Others 677,371.86 721,519.31
Total 7,268,385.20 9,767,330.95
(35)Financial expenses
Items Occurred current term Amount occurred in same
period last year
Interest expense 8,949,946.50 11,684,820.18
Less: Incoming interests 655,857.65 2,945,262.09
Plus: Exchange loss 236,298.81 157,988.00
Less: Exchange gain 9,323.92 4,894.80
Commission charges and others 1,668,533.39 871,895.74
Total 10,189,597.13 9,764,547.03
(36)Income from change of fair value
Source of income from fluctuation of
fair value Occurred current term Amount occurred in same
period last year60
Investment property measured at fair
value 6,553,456.32 2,385,370.72
Others 1,130,025.80
Total 6,553,456.32 3,515,396.52
(37)Investment income
(1) Investment income by resources:
Sources of investment gains Occurred current
term
Amount occurred in same
period last year
Gains from long-term equity investment
Long-term equity investment gains on equity
basis
Investment gains from disposal of
transactional financial assets
Investment gains from disposal of disposable
financial assets 3,176,516.97 16,614,079.31
Other investment income -2,450.00 308,534.09
Total 3,174,066.97 16,922,613.40
Note: Investment gains decreased by 81.24% from the same period of last year,
which was caused by greater gains from investment in disposable financial assets
in last year.
(38)Asset impairment loss
Items Occurred current
term
Amount occurred in
same period last year
Bad debt losses 854,610.52 3,759,400.66
Inventory impairment losses
Total 854,610.52 3,759,400.66
(39)Non-operational income
Items Occurred current term Amount occurred in same
period last year
Total of gains from disposal of non-current
assets 10,727,318.70 2,580.00
Incl. Gains from disposal of fixed assets 4,181,049.33 2,580.00
Gains from debt reorganization 20,603.21 211,729.61
Gains from governmental subsidy (Note 1) 3,673,500.00 590,000.00
Penalty income 86,341.65 59,221.00
VAT offset and transferred in 0.00 3,594.08
Income from penalties 4,000.00 2000
Payable account not able to be paid 88,520.46 9,672.69
Others 143,763.53 537,778.50
Total 14,744,047.55 1,416,575.8861
Note 1: Details of gains from government subsidies:
Items Occurred current term
Amount occurred in
same period last
year
Shenzhen 863 Scheme funding 3,430,000.00
Financing for intellectual property 66,000
Award for export in the 1st half of 2009 60,000.00
Award for significant contribution of 2009 100,000.00
Award for international market exploring 10,000.00
Foreign trade development fund 3,500.00
Provincial Technical Award 2008 20,000.00
Amortizing of cost for development
equipment of high-power LED chips 50,000.00
Award from Mid-Small Enterprise Export
Fund 18,000.00
Award for key enterprises provided by
Jiangxi Bureau of Finance 60,000.00
Enterprise development special fund 396,000.00
Others 50,000.00
Total 3,673,500.00 590,000.00
Note 1: Other receivable account increased by 795.84% in the report term. Which was
caused by engaging of the Land Retrieving Compensation Agreement by Fangda Aluminum and
Nanchang High-tech Industry Zone Administration Committee to retrieve the land under possession of
Aluminum Co. amounted to RMB30.6043 million. As of the end of report term, the Land Retrieving
Agreement has been engaged with Nanchang State Land Resource Bureau and the deregistration
procedures have been completed and the asset disposal income of RMBRMB10,727,318.70 million
was recognized.
(40)Non-operational expenditure
Items Occurred current term Amount occurred in same
period last year
Total of loss from disposal of non-current
assets 301,542.48 168,452.62
Incl. Loss from disposal of fixed assets 301,542.48 168,452.62
Losses from debt restructuring 227,555.80 75,911.82
Donations 572,762.20
VAT income transferred out 0.00 1,743.59
Other (Note 2) 28,751.94 38,027.27
Total 1,130,612.42 284,135.30
Note 1. Non-operational expenditures increased by 279.91% over the same period of last
year, which was caused by increasing of external donations.62
(41)Income tax expenses
Composition of income tax of the report term:
Items Occurred current term Amount occurred in same
period last year
Income tax calculated according to the law
and regulations of current term 3,500,469.18
Adjustment of differed income tax 2,985,816.65 -892,969.03
Total 6,486,285.83 -892,969.03
Note 1: Income tax of the current term was RMB3,500,469.18, which was formed by Fangda
Decoration in the report term.
Note 2: Please go to Note V (15) for the differed income tax.
(42)Calculation formula of basic earnings per share and diluted earnings per share
According to “Information Disclosure Rules No.9 – Calculation and disclosure
of net earnings on asset and earnings per share” (中国证券监督管理委员会公告[2010]2
号) and “Explanation Announcement of Information Disclosure No. 1 – Non-recurring
gain/loss” (中国证券监督管理委员会公告[2008]43 号), the earnings per share is
calculated as the following:
7. Calculation outcome
Profit of the report period
Current term Same period of last term
Basic earnings
per share
Diluted
earnings per
share
Basic earnings
per share
Diluted
earnings per
share
Net profit attributable to common share
holders of the Company (I)
0.074 0.074 0.066 0.066
Net profit attributable to common share
holders of the Company after deducting of
non-recurring gain/loss (II)
0.029 0.029 0.021 0.021
8. Formula of earnings per share
Items No. Current term
Same period of
last term
Net profit attributable to common shareholders of the
Company
1 33,608,581.42 30,076,634.28
Non-recurring gain/loss attributable to the net profit of
common shareholders of the parent company after
deducting of income tax influences
2 17,742,899.97 20,432,739.71
Net profit attributable to common share holders of the
Company after deducting of non-recurring gain/loss
3=1-2 13,165,642.02 9,643,894.57
Total of shares at beginning of shares 4 426,786,359.00 426,786,359.00
Amount of shares increased by capitalizing of common 5 29,875,045.00 29,875,045.0063
Items No. Current term
Same period of
last term
reserves or share dividend
Amount of shares increased by issuing of new shares or
transforming of debt to shares
6 47,945,200.00
The number of months from the next month of share
increasing by issuing of new shares or transferring of
debts to the end of report term
7
Amount of shares decreased by repurchasing of shares in
the report term
8
The number of months since the next month of share
decreasing to the end of report term
9
Amount of shares reduced 10
Number of months in the report term 11 6 6
Weighted average of common shares issued outside (I)
12=4+5+6×7
÷11-8×9÷11-10
456,661,404 456,661,404
Weighted average of common shares issued outside
adjusted for merger under common control (II)
13
Basic earning per share (I) 14=1÷12 0.074 0.066
Basic earning per share (II) 15=3÷13 0.029 0.021
Diluting potential common share interests recognized as
expenses
16
Income tax rate 17
Transformation fees 18
Amount of shares increased by transforming or exercising
of company bond, subscription certificate, or share option
19
Diluted earning per share (I)
120=[1+(16-18)×
(1-17)]÷(12+19)
0.074 0.066
Diluted earning per share (II)
21=[3+(16－18)
×(1-17)]÷(13+19)
0.035 0.021
9. Common shares issued by the Company or potential common shares are not
changed significantly during the period between the balance sheet day and the
approving day of the financial report, thus not to be diluted
(43)Other misc incomes
Items Occurred
current term
Amount occurred
in same period last
year
1. Gains (losses) from sellable financial assets -346,410.96 1,335,017.58
Less: Income tax influence of sellable financial assets -21,210.41 224,466.42
Net amount written into other gains and transferred
into gain/loss in previous terms 2,694,453.18 5,697,539.05
Sub-total -3,019,653.73 -4,586,987.8964
(44)Notes to the Cash Flow Statement
1. Other cash inflow related to operation
Other cash received relating to business operation in the report term was RMB39,549,834.46. The
details are:
Items
Amount of the Current
Term
Amount of the same period
of last year
Interest income 1,470,819.53 2,500,365.59
Allowance income 4,623,500.00 2,487,000.00
Bidding deposit retrieved 13,991,502.00 12,124,998.00
Net amount of operational trade retrieved 10,449,421.25 2,867,353.99
Total 30,535,242.78 19,979,717.58
2. Other cash paid related to operation
Other cash paid relating to business operation in the report term was RMB58,027,646.80. The
details are:
Items
Amount of the Current
Term
Amount of the same period
of last year
Administrative fees paid 10,157,049.59 8,212,409.76
2. Share in other misc. income of the invested company on
equity basis
Less: Income tax influence of shares in other gains of investees
on equity basis
Net amount written into other gains and transferred into
gain/loss in previous terms
Sub-total
3. Amount of gains (or losses) from cash flow hedge
instrument -1,648,500.00
Less: Income tax influence of cash flow hedge instruments -217,125.00
Net amount written into other gains and transferred into
gain/loss in previous terms 2,845,166.75
Adjusted amount transferred to initial amount of the target
project
Subtotal
-4,276,541.75
4. Difference from translating of foreign currency financial
statements
Less: Net amount of disposing overseas business and
transferred to current gain/loss
Sub-total
5. Others
Less: Income tax influence by other accounted into other
misc. incomes
Net amount accounted into other misc. income and transferred
into current gain/loss in previous terms
Sub-total
Total -7,296,195.48 -4,586,987.8965
Sales expenses paid 5,202,990.18 5,405,087.64
Deposit and guarantee paid 16,405,862.48 10,832,180.00
Individual borrowing 5,820,664.17 5,626,365.69
Net deposit for drafts 9,854,385.82
Total 47,440,952.24 30,076,043.09
3. Other cash paid related to financing
Other cash paid relating to financing operation in the report term was RMB2,987,419.79. The
details are:
Items
Amount of the Current
Term
Amount of the same period
of last year
Payment of share placing fee 2,978,629.66
Net amount of deposit for related notes paid 95,901,563.87
Total 2,978,629.66 95,901,563.87
(45)Appendix of Cash Flow Statement
(1) Net profit adjusted to cash flow of business operation on indirect basis
Supplementary Info. Amount of the
Current Term
Amount of the
same period of
last year
1.Net profit adjusted to cash flow of operation:
净利润Net profit 30,299,235.03 27,043,148.61
Plus: Asset impairment provision 854,610.52 3,759,400.66
Fixed asset depreciation, gas and petrol depreciation, production
goods depreciation 8,978,617.31 10,712,455.50
Amortizing of intangible assets 2,068,702.68 960,918.84
Amortizing of long-term expenses
Loss from disposal of fixed assets, intangible assets, and other
long-term assets (“-“ for gains) -10,425,776.22 147,240.06
Loss from fixed asset discard (“-“ for gains) 1,550.00
Loss from fluctuation of fair value (“-“ for gains) -6,553,456.32 -3,515,396.52
Financial expenses (“-“ for gains) 9,008,860.25 10,843,491.21
Investment loss (“-“ for gains) -3,174,066.97 -16,922,613.40
Decrease of deferred income tax asset (“-“ for increase) -1,240,534.28 -922,896.29
Increase deferred income tax asset (“-“ for decrease) 3,026,882.91 -890,743.04
Decrease of inventory (“-“ for increase) -31,020,490.97 -45,388,387.73
Decrease of operational receivable items (“-“ for increase) -67,372,855.81 41,560,785.86
Increase of operational payable items (“-“ for decrease) 26,022,948.81 17,640,522.11
其他Others 0.00
Cash flow generated by business operation, net -39,527,323.06 45,029,475.86
2. Major investment and financing activities not involving in cash66
Supplementary Info. Amount of the
Current Term
Amount of the
same period of
last year
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 period end 498,849,443.70 173,845,934.26
Less: Initial balance of cash 210,823,550.83 112,333,106.38
Plus: Balance of cash equivalents at the period end
Less: Initial balance of cash equivalents
Net increasing of cash and cash equivalents 288,025,892.87 61,512,827.88
(2) Cash and cash equivalents
Items
Amount of the
Current Term
Amount of the
same period of
last year
I. Cash 498,849,443.70 173,845,934.29
Incl: Cash in stock 17,490.02 59,076.93
Bank savings could be used at any time 498,831,953.68 173,786,857.36
Other monetary capital could be used at any time
Usable money in Central Bank
Money saved in associated financial bodies
Money from associated financial bodies
II. Cash equivalents
Incl. Bond investment due in 3 months
III. Balance of cash and cash equivalents at end of term 498,849,443.70 173,845,934.29
IV. Cash and cash equivalents of subsidiaries within the parent
company or group under constrains
六、Related parties and transactions
(29)Relationship
1． Main related parties of the Company
Name of the
parties
Ownership
type
Reg.
Add.
Legal
representative
Business
property
Registered
capital
(RMB0’000)
Organization
code
Shareholding
in the
Company
Voting
power in
the
Company
Shenzhen
Banglin
Technologies
Development
Co., Ltd.
Ltd.
liability Shenzhen Chen Jinwu Industrial
investment 3,000.00 72984005-5 10.04% 10.04%67
Shenzhen
Shilihe
Investment Co.,
Ltd.
Ltd.
liability Shenzhen Wang Shengguo Industrial
investment 1,978.0992 72984450-7 4.43% 4.43%
Hong Kong
Onforce
International
Co., Ltd.
Ltd.
liability HK Industrial
investment N/A 3.75% 3.75%
2． Particulars of the subsidiaries
For details of the subsidiaries please go to Note IV – Merger of enterprises and consolidated
financial statements
3． Affiliates
Name of the parties Relation with the Company Organization code
Nanchang Fangda Property Co.,
Ltd.
Affiliate of the fully-owned
subsidiary 66203343-4
(30)Related party transactions
Guarantees among the related parties
Guarantor The
beneficiary Amount guaranteed Target of
guarantee
Completed
or not
Fangda Decoration,
Fangda Automatic,
Fangda New Material
The
Company 210,000,000
Loans
No
The Company Fangda New
Material
18,000,000.00 Loans No
16,000,000.00 Loans No
16,000,000.00 Loans No
15,000,000.00 Loans No
15,000,000.00 Loans No
40,000,000.00 Loans No
6,222,141.26 Note No
370,752.47
Guarantee
letter
No
The Company Fangda
Decoration
50,000,000.00 Loans No
13,684,637.63 Note No
149,226,207.56
Guarantee
letter
No
The Company Fangda
Automatic
9,028,884.45 Note No
104,662,400.34
Guarantee
letter
No
17,402,214.00 L/C No68
(31)Balance of trade with related parties
Name of the parties Subject
Balance of book value at
end of term
Balance of book value at
beginning of term
Amount Proportion Amount Proportion
Nanchang Fangda
Property Co., Ltd.
Other
account
payable
3,003,798.17 3.63% 3,000,000.00 10.32%
七、Contingent issues
1． Major unsettled lawsuits
Plaintiff The defender
Case
description
The court Target amount Progress
Fangda
Guoke
Hainan Tianyi
International
Building Co.,
Ltd.
project
payment
lawsuit
Haikou
Longhua
People’s
Court
RMB2,450,811.54
and interest
Opened for
trial but not
judged
China
Fangda
Group Co.,
Ltd.
Panasonic
Electronics
(China) Ltd.
Patent
claiming
Guangzhou
Middle
Court
RMB10 mil.
Waiting for
1st trial
Wang
Weihong
Fangda
Decoration
Project
dispute
Chongqing
Middle
Court
RMB707 and
interest
Not opened
for trial
(1) On December 17, 2009, Fangda Guoke appealed to Haikou Longhua People’s Court
against Hainan Tianyi International Building Co., Ltd. for the overdue payment of LED system of
Hainan Tianyi International Building. The claim was RMB2,450,811.54 of overdue payment and
relative interests. The case was under trial as of June 30, 2010.
(2) On March 31, 2010, the Company sued to the Middle Court of Guangzhou claiming for
protection of the Company’s two patent rights violated by Panasonic Electronics (China) Ltd. in
proceeding of PSD system of Guangzhou Metro. The claiming was to stop the violating activity
and compensation of RMB10 million. This cash was accepted by the court and waiting for trial.
(3) In 2010, Wang Weihong sued to Chongqing Middle Court claiming for the project
payment of RMB1707, this case was not opened for trial yet and under paperwork.
2． Major lawsuits settled but not executed completely
(1) On January 13, 2002, Shenzhen Fangda Decoration Engineering Co., Ltd. (Fangda
Decoration) appealed to Dalian Arbitration Committee against Dalian Hongjin World Trade Center
for the outstanding payment of RMB22,112,004.30 and interests.69
On July 28, 2008, Dalian Arbitration Committee judged with [2002]大仲字第228 号that
Dalian Hongjin World Trade Center Co., Ltd. shall pay RMB19,194,665.60 and interest to Fangda
Decoration in 10 days. (In which interest of RMB17,414,863.00 will be charged since December 1,
2001; interest of RMB1,779,802.60 will be charged since December 1, 2002.)
As of December 31, 2009, the Company has not received any payment from Dalian Hongjin
World Trade Center Co., Ltd. Fangda Decoration has filed to the court for enforcement. The court
has frozen the property under its possession with value of RMB25 million.
(2) On November 24, 2004, Shanxi Taiyuan Middle Court issued the Civil Judgment （2004）
并民初字第322 号that Shanxi No.2 Construction Co., Ltd. and Shanxi Taiyuan Police Station
should make the payment of RMB11,506,930.98 to Fangda Decoration in two disbursement. As
of June 30, 2010, Fangda Decoration has received RMB5,272,450.00, but the rest has not been
received yet.
(3) On May 10, 2002, Shenzhen Middle Court issued the Civil Settlement Letter （2002）深
中法经一初字第170 号by which required Shenzhen Department Store Co., Ltd. to pay
RMB7,866,847.00 to Fangda Decoration before April 30, 2003. If the payment was paid on time
and in full amount, Fangda Decoration will waive the right to claim for the interest, otherwise
Fangda Decoration will claim for the interests related to the above overdue payment.As of June 31,
2010, Fangda Decoration has retrieved RMB4,675,769.64 (including RMB3,853,158.00
compensated by Room 517 and 518 of Shenzhen Department Store Building, but the property has
not officially transferred yet.), the rest payment has not been received yet.
(4) On January 2, 2003, Guangzhou Middle Court issued the Civil Settlement Letter （2002）
穗中法民三初字第00596 号requiring Guangzhou Yi’an Plaza Property Development Co., Ltd.
to pay RMB5,621,329.63 to Fangda Decoration in 15 days. As of December 31, 2009, Fangda
Decoration has received RMB1,950,000.00, and the rest of payment has not been received yet.
(5) On March 25, 2002, Guangdong Zhongshan Middle Court issued the Civil Judgment
（ 2001 ） 中中经初字第140 号requiring Zhongshan Jianlian Property Co., Ltd. to pay
RMB5,569,420.54 of principal and RMB220,000.00 of interest to Fangda Decoration. As of
December 31, 2009, Fangda Decoration has received RMB3,717,577.00, and the rest of payment
has not been received yet.
3． Contingent liabilities formed by providing of guarantee to other parties and financial
influences
As of June 30, 2010, all of the guarantees provided by the Company were to the subsidiaries,
please see Note VI (2) for details.
As of June 30, no other major contingent issues other than the above to be disclosed.
4． Issuing of guarantee letters and L/Cs
Provider of the guarantees
Unsettled guarantee letter
amount
Unsettled L/C amount
(USD)70
Fangda Decoration 150,066,007.56
Fangda Automatic 104,662,400.34 17,402,214.00
Fangda Yide Co. 750,000.00
Fangda New Material 370,752.47
Total 255,849,160.37 17,402,214.00
As of June 30, 2010 no other major contingent issues other than the above to be disclosed.
八、Significant commitments
(32)Significant commitments
1. Pledging of the Company’s own property for bank loans are demonstrated in Note V.
2. Details of guarantees provided between the Company and its subsidiaries for bank credits
are:
(1) As of June 30, 2010, the Company have provided guarantees to the subsidiaries for bank
credits:
Name of companies Amount Note
Fangda New Material 258,000,000.00
Practical situations are
demonstrated in Note VI (II)
Fangda Decoration 320,000,000.00
Fangda Automatic 310,000,000.00
Total 888,000,000.00
(2) As of June 30, 2010, the subsidiaries have provided guarantees to the Company
for bank credits:
Name of companies Amount Note
Fangda Decoration, Fangda Automatic, Fangda New
Material
210,000,000.00
Total 210,000,000.00
(33)Fulfilling of commitments made in previous terms
Commitments made by the Company in previous terms were exercised normally along with
repaying of loans by the receiver of guarantees.
As of June 30, 2010, the Company has no major commitment issues to be disclosed other
than the above.
九、Post-balance-sheet issues
None71
十、Other significant issues
(34)Leases
As of June 30, 2010, the properties for rent are:
(35)Items on fair value basis
Items
Fair value at
beginning of
term
Gain/loss
from change
of fair value
in the term
Accumulative
change in fair
value
accounted into
equities
Impairment
provisions
provided in
the current
term
Fair value at
end of term
I. Financial assets 7,520,445.42 -3,019,653.73 3,150,000.00
1. Financial assets on
fair value and
changes accounted
into current gain/loss
(Derivate financial
assets excluded)
2. Derivate financial
assets
3. Disposable
financial assets 7,520,445.42 -3,019,653.73 3,150,000.00
II. Financial liabilities -4,276,541.75 -1,648,500.00
II. Investment
property 259,497,678.80 6,553,456.32 266,051,135.12
III. Production
biological assets
IV. Others
Total 267,018,124.22 6,553,456.32 -7,296,195.48 267,552,635.12
十一、Notes to the main items of the financial statements of the parent company
（I） Account receivable
(1) Account receivable is categorized as:
Categories
Balance of book value at end of term
Book value Bad debt provision Net amount
Category of property for rent
Balance of book value at end of
term
Balance of book value at
beginning of term
Investment properties
266,051,135.12 259,497,678.80
Total
266,051,135.12 259,497,678.8072
Amount Ratio
(%) Amount Providing
rate (%)
Single receivable
account with mass
amount
8,279,817.46 100.00% 827,981.75 10.00% 7,451,835.71
No major amount
individually but with
great risk after combined
with others with similar
credit risk
Other non-material
receivables
Total 8,279,817.46 100.00% 827,981.75 10.00% 7,451,835.71
Categories
Balance of book value at beginning of term
Book value Bad debt provision
Net amount
Amount Ratio
(%) Amount Providing
rate (%)
Single receivable
account with mass
amount
10,117,310.57 88.67% 1,011,731.06 10.00% 9,105,579.51
No major amount
individually but with
great risk after combined
with others with similar
credit risk
Other non-material
receivables 1,293,252.64 11.33% 38,797.58 3.00% 1,254,455.06
Total 11,410,563.21 100.00% 1,050,528.64 9.21% 10,360,034.57
(2) Receivable accounts on ages:
Age
Balance of book value at end of term
Amount Ratio (%) Bad debt
provision Net amount
within 1 year
1-2 yrs (included) 8,279,817.46 100.00% 827,981.75 7,451,835.71
Total 8,279,817.46 100.00% 827,981.75 7,451,835.71
Age
Balance of book value at beginning of term
Amount Ratio (%) Bad debt
provision Net amount
within 1 year 1,293,252.64 11.33% 38,797.58 1,254,455.06
1-2 yrs (included) 10,117,310.57 88.67% 1,011,731.06 9,105,579.51
Total 11,410,563.21 100.00% 1,050,528.64 10,360,034.57
(3) Bad debt provisions on receivable accounts with minor single amount but test
individually
Description of the
Book value at end
of term
Bad debt
provision Rate Reason73
receivable accounts
PSD project payment
receivable 8,279,817.46 827,981.75 10.00%
provided
according to
ages
Total 8,279,817.46 827,981.75 10.00%
(4) Large amount receivables at end of year:
Name of the
companies
Relation with the
Company
Amount at end
of term Age % in total receivables
No.1 Screen door client 8,279,817.46 1-2 yrs 100.00%
Total 8,279,817.46 100.00%
(5) As of June 30, 2010, there is no outstanding receivable due from shareholders with 5% or
over of the Company’s shares.
（II） Other account receivable
(1) Other account receivable classified as the following:
Categories
Balance of book value at end of term
Book value Bad debt provision
Net amount
Amount Ratio (%) Amount Providing rate
(%)
Other receivable with major
individual amount 127,559,962.65 98.20% 127,559,962.65
No major amount
individually but with great
risk after combined with
others with similar credit
risk
1,240,371.38 0.95% 736,183.88 59.35% 504,187.50
Other minor other
receivables 1,094,471.46 0.85% 46,865.20 4.28% 1,047,606.26
Total 129,894,805.49 100.00% 783,049.08 0.62% 129,111,756.41
Categories
Balance of book value at beginning of term
Book value Bad debt provision
Net amount
Amount Ratio (%) Amount Providing rate
(%)
Other receivable with major
individual amount 245,226,562.75 96.23% 245,226,562.75
No major amount
individually but with great
risk after combined with
others with similar credit
risk
1,087,421.00 0.43% 570,233.51 52.44% 517,187.49
Other minor other
receivables 8,509,385.81 3.34% 51,475.33 0.60% 8,457,910.48
Total 254,823,369.56 100.00% 621,708.84 0.24% 254,201,660.72
(2) Other receivable accounts demonstrated by ages:
Age
Balance of book value at end of term
Amount Ratio (%) Bad debt
provision Net amount
within 1 year 128,621,726.50 99.02% 31,852.92 128,589,873.5874
1-2 yrs (included)
2-3 yrs (included) 6,707.61 0.01% 2,012.28 4,695.33
Over 3 yrs 1,266,371.38 0.97% 749,183.88 517,187.50
Total 129,894,805.49 100.00% 783,049.08 129,111,756.41
Age
Balance of book value at beginning of term
Amount Ratio (%) Bad debt
provision Net amount
within 1 year 219,689,235.09 86.21% 49,463.05 219,639,772.04
1-2 yrs (included) 34,040,005.86 13.36% 34,040,005.86
2-3 yrs (included) 6,707.61 2,012.28 4,695.33
Over 3 yrs 1,087,421.00 0.43% 570,233.51 517,187.49
Total 254,823,369.56 100.00% 621,708.84 254,201,660.72
(4) Other top 5 debtors of other receivables:
Name of the
companies Specification Relation with
the Company
Book value at
end of term Age
Portion in total
other receivable
accounts (%)
Fangda New
Material
Trade with
subsidiary
Controlled
subsidiaries 73,217,862.06 within 1
year 56.37%
HK Junjia Trade with
subsidiary
Controlled
subsidiaries 30,375,198.31 within 1
year 23.38%
Fangda
Decoration
Trade with
subsidiary
Controlled
subsidiaries 14,547,328.25 within 1
year 11.20%
Fangda Guoke Trade with
subsidiary
Controlled
subsidiaries
3,691,444.46 within 1
year 5.52%
3,484,947.27 1-2 yrs
Shenzhen
Changshou
Pharmacy
Co., Ltd.
Compensation
for building
Trading
company 984,375.00 Over 3 yrs 0.76%
Total 126,301,155.35 97.23%
(4) Receivable accounts due from related parties
Name of the
companies
Relation with the
Company
Book value at
end of term
Portion in total other receivable
accounts (%)
Fangda New Material Fully-owned
subsidiary 73,217,862.06 56.37%
HK Junjia Fully-owned
subsidiary 30,375,198.31 23.38%
Fangda Decoration Fully-owned
subsidiary 14,547,328.25 11.20%
Fangda Guoke Subsidiary of
controlled subsidiary 7,176,391.73 5.52%
Decoration Co.
Nanchang Branch
Branch of fully-owned
subsidiary 1,000,000.00 0.77%
Automatic Co.
Nanchang Branch
Branch of fully-owned
subsidiary 1,000,000.00 0.77%
Shenyang Fangda Controlled subsidiaries 243,182.30 0.19%
Total 127,559,962.65 98.80%75
（III）Long-term share equity investment
Long-term equity investment:
Company
invested in
Calculating
basis Initial costs
Balance of book
value at
beginning of term
Changed this
term (- for
decrease)
Balance of book
value at end of
term
Fangda
Decoration Cost basis 95,000,000.00 95,000,000.00 95,000,000.00
Fangda
Aluminium Cost basis 19,800,000.00 3,773,279.17 3,773,279.17
Fangda Yide Co. Cost basis 19,907,760.00
HK Junjia Cost basis 10,600.00
Fangda
Automatic Cost basis 45,000,000.00 45,000,000.00 45,000,000.00
Fangda New
Material Cost basis 74,496,600.00 74,496,600.00 74,496,600.00
Shenyang Fangda Cost basis 109,560,000.00 108,852,073.85 108,852,073.85
Total 363,067,033.85 327,121,953.02 327,121,953.02
Company
invested in
Share
proportion
(%)
Voting rights (%) Impairment
provision
Impairment
provision
provided this
term
Cash dividend of
the current term
Fangda
Decoration 95.00 95.00
Fangda
Aluminium 99.00 99.00 16,026,720.83
Fangda Yide Co. 75.00 75.00 19,907,760.00
HK Junjia 100.00 100.00 10,600.00
Fangda
Automatic 90.00 90.00
Fangda New
Material 75.00 75.00
Shenyang Fangda 64.58 64.58
Chongqing
Fangda 25.00 25.00
Total 35,945,080.83
（IV） Operational turnover and costs
(1) Details of business turnover and costs:
Items Occurred current term Amount occurred in
same period last year
Turnover 18,558,245.60 17,409,790.44
Incl. Main business turnover 184,615.38 338,559.83
Other business income 18,373,630.22 17,071,230.61
Operation cost 4,777,841.15 4,470,349.48
Incl. Main business cost 131,726.94 211,937.64
Other business cost 4,646,114.21 4,258,411.84
(2) Main business turnover distribution on products:
Products or services Occurred current term Amount occurred in
same period last year76
Turnover Operation
cost Turnover Operation
cost
Metro screen door
products 184,615.38 131,726.94 338,559.83 211,937.64
Rental 14,666,834.11 945,726.68 14,049,748.27 1,143,860.26
Others 3,706,796.11 3,700,387.53 3,021,482.34 3,114,551.58
Total 18,558,245.60 4,777,841.15 17,409,790.44 4,470,349.48
(3) Top 5 clients
Name of clients Occurred
current term Portion in total turnover (%)
Shenzhen Yachang Color
Printing Co., Ltd. 6,401,037.08 34.49%
Shenzhen Taishan Online Tech
Co. Ltd. 843,733.25 4.55%
Shenzhen Xinke Tech Co., Ltd. 588,372.24 3.17%
Shenzhen Guangfeng Optical &
Electronics Co., Ltd. 449,007.00 2.42%
Shenzhen Yiaote Tech Co., Ltd. 431,671.60 2.33%
合计Total 8,713,821.17 46.95%
（V） Appendix of Cash Flow Statement
Supplementary Info. Amount of the
Current Term
Amount of
the same
period of last
year
1.Net profit adjusted to cash flow of operation:
Net profit 5,936,531.75 2,824,368.62
Plus: Asset impairment provision -240,157.03 109,165.46
Fixed asset depreciation, gas and petrol depreciation,
production goods depreciation 734,292.69 914,022.01
Amortizing of intangible assets 447,681.75 259,397.68
Amortizing of long-term expenses
Loss from disposal of fixed assets, intangible assets, and other
long-term assets (“-“ for gains)
Loss from fixed asset discard (“-“ for gains)
Loss from fluctuation of fair value (“-“ for gains) -6,498,256.32 -2,249,337.72
Financial expenses (“-“ for gains) 2,648,600.20 2,788,133.57
Investment loss (“-“ for gains)
Decrease of deferred income tax asset (“-“ for increase) -434,125.32
Increase deferred income tax asset (“-“ for decrease) 3,985,213.31
Decrease of inventory (“-“ for increase)
Decrease of operational receivable items (“-“ for increase) 2,659,100.34 7,824,392.61
Increase of operational payable items (“-“ for decrease) -7,614,421.60 -487,979.9477
Supplementary Info. Amount of the
Current Term
Amount of
the same
period of last
year
Others
Cash flow generated by business operation, net 1,624,459.77 11,982,162.29
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 period end 349,325,683.71 15,884,628.76
Less: Initial balance of cash 42,024,488.50 3,452,206.23
Plus: Balance of cash equivalents at the period end
Less: Initial balance of cash equivalents
Net increasing of cash and cash equivalents 307,301,195.21 12,432,422.53
十二、Supplementary Info.
(36)Details of non-recurring gain/loss of current term
According to document 公告[2008]43 号issued by China Securities Regulatory
Commission, the non-recurring gain/loss are as the followings:
Items Occurred
current term Note
Gain/loss from disposal of non-working capital, including the
neutralized part of the impairment provision provided already 10,727,318.70
Refunding and exemption of taxes in excess of authority or
without official approval documents
Government subsidies accounted into current income account
(except for those government subsidies closely related to the
Company’s business, and received at national statutory
standard and amount)
3,673,500.00
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
3,176,516.97
Investment gains
from disposal of
sellable financial
assets
Gain/loss from change of fair value of investment property
measured at fair value in follow-up measurement 6,553,456.32
Consigning fee received for cosigned operation
Other non-business income and expenditures other than the
above -787,383.57
Other gain/loss items satisfying the definition of non-recurring
gain/loss account
Total of non-recurring gain/loss (influence on gross profit) 23,343,408.4278
Items Occurred
current term Note
Less: Influenced amount of income tax 31,051.22
Net non-recurring gain/loss (influence on net profit) 23,312,357.20
Less: Influenced amount of minor shareholders’ equity 2,869,417.80
Non-recurring gain/loss attributable to net profit of common
shareholders of the parent company 20,442,939.40
Net profit attributable to common share holders of the
Company after deducting of non-recurring gain/loss 13,165,642.02
(37)Net income on asset and earnings per share
According to “Information Disclosure Rules No.9 – Calculation and disclosure
of net earnings on asset and earnings per share (中国证券监督管理委员会公告[2010]2
号) and “Explanation Announcement of Information Disclosure No. 1 – Non-recurring
gain/loss (中国证券监督管理委员会公告[2008]43 号), the earnings per share is
calculated as the following:
Profit of the report period
Currentterm
Net income on asset,
weighted
Earnings per share
Basic earnings
per share
Diluted
earnings per
share
Net profit attributable to common shareholders of the
Company
5.28% 0.074 0.074
Net profit attributable to the common owners of the PLC
after deducting of non-recurring gains/losses
2.07% 0.029 0.029
Profit of the report period
Same period of last term
Net income on asset,
weighted
Earnings per share
Basic earnings
per share
Diluted
earnings per
share
Net profit attributable to common shareholders of the
Company
5.22% 0.066 0.066
Net profit attributable to the common owners of the PLC
after deducting of non-recurring gains/losses
1.68% 0.021 0.021
Legal representative: Accounting Manager: Manager of Accounting Dept.
China Fangda Group Co., Ltd.
August 17, 2010
