Stock Code: 000055, 200055 Stock ID: Fangda Group, Fangda B

    Announcement No. 2010-34

    China Fangda Group Co., Ltd.

    Resolutions of the 23th Meeting of the 5th Term of Board

    The members of the Board and the Company acknowledge being responsible for the

    truthfulness, accuracy, and completeness of the announcement. Not any false

    record, misleading statement or significant omission carried in this announcement.

    The Board of Directors of China Fangda Group Co., Ltd. (“The Company” hereinafter)

    delivered the meeting circulars in terms of written and fax on October 9, 2010. The

    23rd meeting of the 5th term of Board of Directors was held in the meeting room of the

    Company in the afternoon of October 21, 2010. 6 of the 7 directors presented the

    meeting, director Mr. Wang Shenguo absented due to business engagement. He

    entrusted director Mr. Xiong Jianwei to vote on his behalf. The meeting is complying

    with the provisions set out by the Company Law and the Article of Association of the

    Company. Chairman Xiong Jianming presided the meeting. The following resolutions

    were adopted with 7 votes in favor, 0 objection and 0 waive:

    1. The official text and full text of the 3rd Quarterly Report 2010;

    2. The proposal of “Report of Special Action on Basic Accounting Works”;

    3. The proposal of “Self-inspection report on establishing of long-term system to prevent capital

    adoption”;

    According to the notice （深证局公司字【2010】59 号文） issued by Shenzhen Securities

    Regulatory Bureau on establishing of long-term system to prevent capital adoption and

    self-inspection action, the Company conducted inspection on the capital interchange between the

    holding shareholder and the related parties, and come out the results as the followings:

    There was neither non-operational nor operational adoption of capital by the holding shareholder;

    no capital adoption by mean of unfair related transactions; no payment made on behalf of the

    holding shareholder or its related parties.

    Through producing and improving of the Articles of Association, the Regulations of Related Party

    Transaction, Regulations of Payment Authorization, and Regulations of Raised Capital, the

    Company has regulated the capital adoption in term of internal controlling system.

    The above is for the attention of the shareholders.

    China Fangda Group Co., Ltd.

    The Board of Directors

    October 23, 2010