China Fangda Group Co., Ltd. Annual Report 2010 (Summary)
Stock Code: 000055, 200055 Stock ID: Fangda Group, Fangda B Announcement No. 2011-07
China Fangda Group Co., Ltd.
Annual Report 2010 (Summary)
§1 Important Declaration
1.1 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 is the summary abstracted from the complete version of Semi-Annual Report 2004, which is published
synchronously on the Internet (http://www.cninfo.com.cn) for details please refer to the complete version.
1.2 Ascenda Certified Public Accountants audited the Financial Report 2009 and issued the standard
Auditors’ Report without qualified opinion.
1.3 Mr. Xiong Jianming, the Chairman, Mr. Lin Kebing, the Financial Principal and Mr. Chen Yonggang, the Accounting
Manager hereby declares that: The financial statements carried in this annual report are of authentic and complete.
§2 Company Profile
2.1 Company Profile
Stock ID Fangda Group, Fangda B
Stock Code 000055、200055
Stock Exchange Shenzhen Stock Exchange
Reg. Add. Fangda Building, Kejinan 12th Avenue, High-tech Zone, Shenzhen, PR China.
Post Code 518057
Office address Fangda Town, Xili Longjing, Nanshan District, Shenzhen, PRC
Post Code: 518055
Website www.fangda.com
Email. fd@fangda.com
2.2 Liaison People
Secretary of the Board Representative of Stock Affairs
Name Zhou Zhigang
Address Fangda Building, Kejinan 12th Avenue, High-tech Zone, Shenzhen, PR China.
Tel. 86（755）26788571-6622
Fax. 86（755）26788353
Email. zqb@fangda.com
1
China Fangda Group Co., Ltd. Annual Report 2010 (Summary)
§3 Financial Highlights
3.1 Major accounting data
In RMB Yuan
Increase/decrease
2010 2009 2008
(%)
Turnover (yuan) 1,161,933,356.48 912,979,118.31 27.27% 784,720,562.64
Gross profit (RMB) 67,655,340.40 45,108,302.29 49.98% 16,312,073.26
Net profit attributable to shareholders of the listed
55,063,374.25 44,052,511.46 24.99% 23,260,881.91
company (yuan)
Net profit attributable to the shareholders of the listed
company and after deducting of non-recurring 25,603,881.05 21,304,916.08 20.18% 2,391,027.81
gain/loss(RMB)
Net Cash flow generated by business operation (RMB) -31,187,262.97 46,698,915.92 -166.78% 23,093,735.18
Increase/decrease
End of 2010 End of 2009 End of 2008
(%)
Gross Assets (RMB) 1,991,161,158.84 1,482,814,012.11 34.28% 1,395,570,931.42
Owners’ equity attributable to the shareholders of the
1,009,990,739.07 623,295,593.57 62.04% 559,715,901.95
listed company (yuan)
Capital shares (shares) 504,606,604.00 426,786,359.00 18.23% 426,786,359.00
3.2 Major financial indices
In RMB Yuan
Increase/decrease
2010 2009 2008
(%)
Basic earnings per share (Yuan/share) 0.11 0.10 10.00% 0.05
Diluted earnings per share (Yuan/share) 0.11 0.10 10.00% 0.05
Basic earnings per share less non-recurring gain/loss (Yuan/share) 0.05 0.05 6.00% 0.01
Weighted average net
6.76% 7.43% -0.67% 4.12%
income/asset ratio (%)
Weighted average net
3.14% 3.60% -0.46% 0.42%
income/asset ratio less non-recurring gain/loss(%)
Net Cash flow per share generated by business operation (yuan/share) -0.06 0.11 -154.55% 0.05
End of End of Increase/decrease End of
2010 2009 (%) 2008
Net asset per share attributable to the shareholders of the listed company
2.00 1.46 36.99% 1.31
(Yuan/share)
Non-recurring gain and loss items
√ applicable □ not applicable
In RMB Yuan
Note (if
Non-recurring gain and loss items Amount
applicable)
Gain/loss of non-current assets 7,068,397.05
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 5,537,950.00
rate or amount.
Gain/loss from debt reorganization -434,040.66
Enterprise reorganizing expenses, such as employee placement fee and integration fee -1,273,987.08
Gain/loss from change of fair value of transactional asset and liabilities, and investment gains from 3,176,516.97
disposal of transactional financial assets and liabilities and sellable financial assets, other than valid
2
China Fangda Group Co., Ltd. Annual Report 2010 (Summary)
period value instruments related to the Company’s common businesses
Gain/loss from change of fair value of investment property measured at fair value in follow-up
13,921,217.90
measurement
Other non-business income and expenditures other than the above 5,845,075.37
Influenced amount of minority shareholders’ equity -93,798.81
Influenced amount of income tax -4,287,837.54
Total 29,459,493.20 -
3.3 Difference between domestic and international accounting standard
√ applicable □ not applicable
In RMB Yuan
Net profit attributable to the shareholders of the Owners’ equity to shareholders of the listed
listed company company
Current term Amount of last term End of term Beginning of term
On IAS 55,063,374.25 44,052,511.46 1,014,754,137.31 628,058,991.81
On domestic accounting
55,063,374.25 44,052,511.46 1,009,990,739.07 623,295,593.57
standard
Individual and total of adjustment according to IAS
Capitalizing of borrowing
0.00 0.00 4,763,398.24 4,763,398.24
expenses
Total of differences between
the IAS and domestic 0.00 0.00 4,763,398.24 4,763,398.24
accounting standard
Statement on differences The different of owners’ equity attributable to the listed company on IAS was mainly the part of
between the IAS and Chinese interest capitalized in years previous to application of the new accounting standard on January 1,
Accounting Standard 2007.
§4 Changes in Share Capital & Particulars about Shareholders
4.1. Statement of Changes in Shares
in shares
Before the change Changed (+,-) After the change
Issuing of Bonus Transferred
Amount Proportion Others Sub-total Amount Proportion
new shares shares from reserves
I. Shares with
65,073 0.02% 47,945,200 4,555 47,949,755 48,014,828 9.52%
conditional subscription
1. State-owned shares
2. State-owned legal
person shares
3. Other domestic shares 0 0.00% 47,945,200 47,945,200 47,945,200 9.50%
Incl. Non-government
domestic legal person 0 0.00% 18,200,000 18,200,000 18,200,000 3.61%
shares
Domestic natural
29,745,200 29,745,200 29,745,200 5.89%
person shares
4. Share held by foreign
investors
Incl. Shares held by
foreign legal persons
3
China Fangda Group Co., Ltd. Annual Report 2010 (Summary)
Foreign natural
person shares
5. Management shares 65,073 0.02% 4,555 4,555 69,628 0.01%
II. Shares with
unconditional 426,721,286 99.98% 29,870,490 29,870,490 456,591,776 90.48%
subscription
1. Common shares in
217,405,903 50.94% 15,218,413 15,218,413 232,624,316 46.10%
RMB
2. Foreign shares in
209,315,383 49.04% 14,652,077 14,652,077 223,967,460 44.38%
domestic market
3. Foreign shares in
overseas market
4. Others
III. Total of capital
426,786,359 100.00% 47,945,200 29,875,045 77,820,245 504,606,604 100.00%
shares
Change of conditional shares
in shares
Name of the Conditional shares at Released Increased this Conditional shares Date of
Reason of condition
shareholder beginning of year this year year at end of year releasing
Management shares
Xiong Jianming 48,117 0 3,368 51,485
with restriction to sale
Management shares
Wang Shengguo 16,956 0 1,187 18,143
with restriction to sale
Tieling Xinxin Copper
0 0 11,200,000 11,200,000 Issuing of new shares Jul 15 2011
Industry Co., Ltd.
Chen Binblin 0 0 10,000,000 10,000,000 Issuing of new shares Jul 15 2011
Shi Baozhong 0 0 7,000,000 7,000,000 Issuing of new shares Jul 15 2011
Zhang Xu 0 0 7,000,000 7,000,000 Issuing of new shares Jul 15 2011
Zhongrong
International Trust Co., 0 0 7,000,000 7,000,000 Issuing of new shares Jul 15 2011
Ltd.
Shen Cangqiong 0 0 5,745,200 5,745,200 Issuing of new shares Jul 15 2011
Total 65,073 0 47,949,755 48,014,828 － －
4.2 Top 10 shareholders and top 10 holders of unconditional shares
in shares
Total of shareholders 63,780
Top 10 Shareholders
Pledged or
Name of the shareholder Properties of shareholder Share proportion % Total shares Conditional shares
frozen
Shenzhen Banglin
Domestic non-state-owned legal
Technologies 9.09% 45,849,515 0 0
person
Development Co., Ltd.
Shenzhen Shilihe Domestic non-state-owned legal
2.36% 11,907,328 0 0
Investment Co., Ltd. person
Tieling Xinxin Copper Domestic non-state-owned legal
2.22% 11,200,000 11,200,000 0
Industry Co., Ltd. person
Chen Binblin Domestic natural person 1.98% 10,000,000 10,000,000 0
Hong Kong Onforce
Overseas legal person 1.63% 8,200,000 0 0
International Co., Ltd.
Shi Baozhong Domestic natural person 1.39% 7,000,000 7,000,000 0
Zhang Xu Domestic natural person 1.39% 7,000,000 7,000,000 0
4
China Fangda Group Co., Ltd. Annual Report 2010 (Summary)
Zhongrong International Domestic non-state-owned legal
1.39% 7,000,000 7,000,000 0
Trust Co., Ltd. person
Shen Cangqiong Domestic natural person 1.14% 5,745,200 5,745,200 0
Li Xiaohua Domestic natural person 0.57% 2,878,600 0 0
Top 10 holders of unconditional shares
Name of the shareholder Unconditional shares Category of shares
Shenzhen Banglin Technologies Development Co., Ltd. 45,849,515 A shares
Shenzhen Shilihe Investment Co., Ltd. 11,907,328 A shares
Hong Kong Onforce International Co., Ltd. 8,200,000 B shares
Li Xiaohua 2,878,600 A shares
Cao Yifan 2,330,010 B shares
Yu Baixiang 1,537,118 B shares
Chen Lihong 1,536,777 B shares
Zhen Fan 1,295,242 B shares
Zhongrong International Trust Co., Ltd. – Huian No.6 1,227,098 A shares
Xiao Gengning 1,020,086 B shares
Notes to relationship or
Among the top 10 shareholders, Banglin and Onforce are parties with action in concert. Banglin and
“action in concert”
Shilihe are associated. As for the other holders of current shares, the Company has not been informed
among the top ten any situation of related parties or action in concert parties.
shareholders.
4.3 Particulars about the holding shareholder and the substantial holder
4.3.1 Change in holding shareholder and the substantial holder
□applicable √ not applicable
4.3.2 Particulars about Controlling Shareholder and the Substantial Controller
Mr. Xiong Jianming is a Chinese citizen, and has been the Chairman of Board and President of the Company for five years.
4.3.3 Holding relationship chart
5
China Fangda Group Co., Ltd. Annual Report 2010 (Summary)
4.3.3 Holding relationship chart
Xiong Jianming
85% 98%
Shenzhen Banglin Technologies Onforce International Ltd.
Development Co., Ltd.
0.014% 1.63%
9.09%
China Fangda Group Co., Ltd.
§5 Directors, Supervisors and Senior Executives
§5 Directors, Supervisors and Senior Executives
5.1 Changing in shareholding and remuneration of the directors, supervisors and senior executives
Pays received from
Shares held Shares
the Company in the Take remuneration
Job Job at the held at Cause of
Name Position Sex Age report term from shareholding
started ended beginning of the end of change
(RMB0’000) or related parties?
term term
before tax
Capital
Xiong Chairman, Jun 06 Jun 06
M 53 64,156 68,647 reserves 91.99 No
Jianming president 2008 2011
capitalized
Capital
Wang Director, Vice Jun 06 Jun 06
M 53 22,608 24,191 reserves 47.38 No
Shengguo president 2008 2011
capitalized
Xiong Jun 06 Jun 06
Director M 42 0 0 ----- 40.05 No
Jianwei 2008 2011
Director,
Zhou Jun 06 Jun 06
Secretary of M 48 0 0 ----- 32.66 No
Zhigang 2008 2011
the Board
Dong Independent Jun 06 Jun 06
M 68 0 0 ----- 8.00 No
Likun Director 2008 2011
Guo Independent Jun 06 Jun 06
M 49 0 0 ----- 8.00 No
Jinlong Director 2008 2011
Shao Independent Jun 06 Jun 06
F 72 0 0 ----- 8.00 No
Hanqing Director 2008 2011
Yu Guoan Host of the M 51 Jun 06 Jun 06 0 0 ----- 22.58 No
6
China Fangda Group Co., Ltd. Annual Report 2010 (Summary)
Supervisory 2008 2011
Committee
Song Jun 06 Jun 06
Supervisor M 49 0 0 ----- 3.00 No
Wenqing 2008 2011
Jun 06 Jun 06
Zhen Hua Supervisor F 51 0 0 ----- 29.81 No
2008 2011
Yang Jun 06 Jun 06
Vice President M 57 0 0 ----- 27.26 No
Xiaozhuan 2008 2011
Vice president Jun 06 Jun 06
Lin Kebin M 33 0 0 ----- 31.91 No
and CFO 2008 2011
Total - - - - - 86,764 92,838 - 350.64 -
Motivational bonus shares granted to the directors, supervisors, and managements in the report term:
□applicable √ not applicable
5.2 Directors’ attending of the board meetings.
Name of the Times to Actually Attended by Presented by Not attend the meetings for
Position Absented
directors attend attended mean of telecom proxy successively 2 times
Xiong
Chairman, president 14 10 4 0 0 No
Jianming
Wang Director, Vice
14 5 4 5 0 Yes
Shengguo president
Xiong Jianwei Director 14 8 4 2 0 No
Director, Secretary
Zhou Zhigang 14 10 4 0 0 No
of the Board
Independent
Shao Hanqing 14 10 4 0 0 No
Director
Independent
Guo Jinlong 14 10 4 0 0 No
Director
Independent
Dong Likun 14 8 4 2 0 No
Director
Statement on directors who absent the board meetings for successively two times
Job engagement
Times of board meetings in the current year 14
Incld. Onsite meetings 10
by telecommunication 4
Combination of onsite and telecommunication 0
§6 Report of the Board
6.1 Report of the Executives
1. Review of Company’s operation during the period of report
(1) Overall operation status
In the report term, the Company has been seizing the great opportunities brought by national policies on energy
saving and environmental protection industry, kept exploring the direction of creative development. As result, the
Company’s products in this area have been enhanced. In the report term, the Company has realized historical
business turnover of RMB1.162 billion, an increase of 27.27% over last year; net profit of RMB55.0634 million,
and growth of 24.99% over last year. New orders were amounted to RMB1.552 billion. As of the end of report term,
7
China Fangda Group Co., Ltd. Annual Report 2010 (Summary)
the Company has reserved orders up to RMB1.1745 billion, which was 101% of the turnover in 2010, increased by
24.75% over the beginning of year. These have laid a solid foundation for the business development in 2011.
(2) Main business and its operations
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, metro platform screen doors, a variety of HAVC
equipment, water supply and drainage equipment, central air-conditioner and their parts and components,
semiconductors and their components. Integrated circuits, lighting products and equipment, solar-energy products
and their R&D. design, production. construction, sales and after-sales service ,property management, property
leasing and parking-lot service.
1) Sales of curtain wall and materials realized significant growth
In the report term, the Company kept enhance its strategic target in expanding of energy-saving curtain wall and
materials, moving toward the high-end products of environmental protection. Depending on the core technical
advantages, the Company has been consolidating its current market and exploring the markets in Bohai Seashore
Area and Yangtzi River Delta Area. As result, the Company has achieved great increase in amount of orders.
In the report term, the Company has won in multiple bidding competitions including Shenyang Xingmo’er, Xi’an
Gardening Fair, China Asean (Liuzhou) Industrial Products Trade Center, Dalian Wanda House, Sanya Phoenix
Island, and Shenzhen Jianli Construction, amounted to RMB1.1759 billion, both production volume and sales
volume have reached the highest record of the Company. Sales income of curtain wall products was RMB956.2659
million, a 20.15% of growth over last year. As of the end of report term, the Company has reserved orders
amounted up to RMB816 million. Along with the rapid growth of the whole industry, curtain wall products will
contribute greater profitability to the Company. In the report term, the Company has received overseas orders
amounted to USD13.046 million.
2) Great effort has been paid on exploring of railroad product market
Following with the development of railroad transportation in developed cities of the country, the railroad has been
helping to pull the economic growth. PSD system is one of the important parts of metro system. As the leading
enterprise in this area of the country, the Company has been further consolidating its advantages in technologies,
reputation, and marketing force. With its own core technologies, the PSD products of the Company have won in
bidding competition for the metro projects of Xi’an and Dalian.
The PSD project orders have entered the peak period of engineering in the report term. The projects of Shenyang
Metro Line 1, Nanjing Metro Line 1, Shenzhen Metro Line 1 extension, Shenzhen Metro Line 2, and Shenzhen
Metro Line 4 were carried forward smoothly. Among them, the PSD systems of Nanjing Metro Line 1, Shenzhen
Metro Line 2, and Shenyang Metro Line 1 have been completed and put into operation. All of them were working
well and received high comments and multiple awards from the owners. In the report term, the sales income of PSD
system was RMB150.9017 million, a 106.62% of increase over last year. The Company was holding both leading
places in technologies and market competition, and will realize rapid growth along with the development of
domestic municipal railroad transportation.
The Company set its foot in the area of PSD manufacturing since 1999, and has been the earliest enterprise in this
area. Great investments have been made in term of manpower, capital, and assets. After years of development, the
Company is now holding the core technologies of PSD system, among them are 197 patents, including 45 invention
patents, count for over half of this area in the whole country, and 4 copyright patents. Meanwhile the Company
thinks highly protection of intelligence properties. In the report term, the Company sued to Guangzhou Middle
Court against Panasonic Electronics (China) Co., Ltd. for its illegal adoption of two patent technologies. And
claiming for terminating of the illegal adoption and RMB10 million of compensation.
3) Accelerate the development of LED industry
In the report term, to further improve the industrial chain and expanding of LED production, the Company has
completed the construction of production base of Shenyang Fangda Semiconductor Lighting Co., Ltd. Shifting of
the semiconductor lighting industry from Shenzhen to Shenyang has been accomplished. Up to then, the Company
has formed a completed industrial chain covering external products, chips, encapsulation, mounting products and
engineering projects. The whole chain has been put into operation and achieved great productivity and quality. This is the brand new
start point of the Company in the semiconductor lighting industry. As one of the newest fruit, the high-power-low-attenuation LED
products has been the leading technologies in the area, which means greatly in increasing the quality of the chips, LED, and
engineering lighting projects.
4) Successful private offering of new A shares
The Company’s development capability in energy-saving curtain wall and PSD was enhanced continuously, which
8
China Fangda Group Co., Ltd. Annual Report 2010 (Summary)
lead to great increasing of orders and market share. 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) In the report term, the Company has won multiple awards including the “Top 100 enterprise of Shenzhen”, “The
top 100 competitors of PLCs”, “The top 500 construction material manufacturers”, “The top 100 manufacturers of
Guangdong 2010”, “Demonstrative Enterprises of Guangdong”, and “Best enterprise in manpower legislation
2010”. Fangda Decoration – one of the fully-owned subsidiaries of the Company, was certified national high-tech
enterprise. Up to then, all of the subsidiaries of the Company have been certified national high-tech enterprises.
Multiple high-end products of Fangda New Material (Jiangxi) Co., Ltd. have been certified for Green Construction
Product. The new inpatient building of Hubei Hospital of Cancer, to which Fangda New Materials (Jiangxi) Co.,
Ltd. provided internal and external decoration aluminum sheet, has won Luban Award, the highest award of the
country in architecture.
6) Undertaking social responsibilities
Along with the prosperity of industrial development, the Company has been undertaking social responsibilities. In
the report term, the Company has paid RMB59.03 million of taxes, which was a 15% of increase over last year,
made donation of RMB200 thousand to Yushu Qinghai – the county attacked by major earthquake this year.
Meanwhile ,the Company has been think highly the legal rights of the employees according to the Law of Labor.
6.2 Principal business segments on industries/products
In RMB10 thousand
Segments on industries
On industry or Operation Gross profit Change of income Change of cost over Gross profit ration
Turnover
product cost ratio (%) over last year % last year % increased/decreased
Metal production 95,626.59 79,557.49 16.80% 20.15% 21.19% -0.71%
Railroad industry 15,090.17 12,941.96 14.24% 106.62% 113.92% -2.92%
Segments on products
Glass wall
76,351.68 63,922.94 16.28% 18.04% 17.58% 0.33%
products
Aluminum
19,274.91 15,634.55 18.89% 29.33% 38.61% -5.43%
products
Metro screen door
15,090.17 12,941.96 14.24% 106.62% 113.92% -2.92%
products
6.3 Major businesses segment on regions
In RMB10 thousand
Regions Turnover Change of income over last year %
Domestic 106,108.10 31.05%
Overseas 5,455.46 -19.38%
Total 111,563.56 27.16%
6.4 Items accounted at fair value
√ applicable □ not applicable
In RMB Yuan
Gain/loss from Accumulative change Impairment Amount at end
Items Initial amount
change of fair value in fair value accounted provisions provided of term
9
China Fangda Group Co., Ltd. Annual Report 2010 (Summary)
in the term into equities in the current term
Financial assets:
Incld. 1. Financial assets
accounted at fair value and
changes accounted into current
gain/loss account
Incld: Derivate financial
assets
2. Sellable financial
7,520,445.42 -3,173,445.42 4,347,000.00
assets
Subtotal of financial assets 7,520,445.42 -3,173,445.42 0.00 4,347,000.00
Financial liabilities
Investment properties 259,497,678.80 13,921,217.90 271,226,332.73
Production physical assets
Others
Total 270,333,199.22 10,606,142.90 -3,173,445.42 275,573,332.73
6.5 Status of proceeds from share placing
√ applicable □ not applicable
In RMB10 thousand
Total of proceeds 33,658.69
Total of proceeds invested this
Total of proceeds changed to other use 2,571.17
0.00 year
in the report term
Accumulated proceeds changed to
0.00
other use
Total of proceeds invested 2,571.17
% of accumulated proceeds changed to
0.00%
other use
If Date
Total of Investment
investment when the
Project proceeds Total Accumulated progress at Profit
project project Major
promised to be to be investment Invested investment at end of realized Gains as
changed report become change in
invested by the invested after this year end of report this expected?
(including feasibility?
proceeds as adjustment term (2) term(%)(3) useable year
partially as
proposed ＝(2)/(1)
change) proposed
Project set by
the prospectus
Energy-saving
curtain wall
and PV curtain
Dec 31
wall No 21,000.00 30,055.17 2,200.73 2,200.73 10.48% Yes No No
2011
production
expanding
project
Expanding of Dec 31
No 12,658.69 20,446.22 370.44 370.44 2.93% Yes No No
PSD project 2011
Subtotal of
investment - 33,658.69 50,501.39 2,571.17 2,571.17 - - - -
promised
Investment
project of
premium
surplus
Not
Not applicable No 0.00 0.00 0.00 0.00 0.00% 0.00 No
applicable
10
China Fangda Group Co., Ltd. Annual Report 2010 (Summary)
Repaying of
bank loans (if - - - - -
any)
Used as current
- - - - -
capital (if any)
Subtotal of
premium - 0.00 0.00 0.00 0.00 - - 0.00 - -
proceeds
Total - 33,658.69 33,658.69 2,571.17 2,571.17 - - - -
Reason or situation that not on schedule (on
None
specific project)
Statement on major change in feasibility None
Amount, usage and progress of premium
Not applicable
surplus
Applicable
According to the needs of business development, and approved by the 24th meeting of
Change of location of project to invest the 5th term of Board, the location of energy saving curtain wall and PV wall project
was changed from Nanchang to Dongguan Guangdong. The PSD production
expanding project was still in Nanchang.
Adjustment on implementation of project
Not applicable
invested
Applicable
On September 30, 2010, it was decided to use the raised capital to replace
Pre-investment and replacement by proceeds RMB4,347,753.09 of investment made previously by Fangda Automatic
(1,403,503.00) and Fangda Decoration (4,347,753.09). This has been verified by CPA
with report 天健正信审（2010）专字第 020722 号.
Applicable
Idle proceed used as working capital Since Sept. 28, 2010, the Company decided to use RMB30 million of proceeds to
support working capital. On September 30, 2010, RMB20 million was paid to Fangda
Decoration, and RMB10 million to Fangda Automatic. Both were not over six months.
Surplus of investment and causation Not applicable
Application plan of retained fund from
Will be used in production expanding of energy-saving curtain wall and PSD project.
financing
Problem or situation in using of proceeds and
None
disclosing
Status of changing of investment projects by proceeds from share placing
□applicable √ not applicable
6.6 Using of fund from other sources
√ applicable □ not applicable
In RMB10 thousand
Amount of the Turnover of the
Projects Investment progress of the project
project project
Shenyang Semi-conductor Lighting Production Phase I. Partly finished and put into
3,069.30 No gains yet
Base production
Dongguan curtain wall production project 5,000.00 Land purchased No gains yet
Total 8,069.30 - -
6.7 Statement of the Board on reasons and influences of major change in accounting policy and accounting
estimations or major accounting faults
□applicable √ not applicable
11
China Fangda Group Co., Ltd. Annual Report 2010 (Summary)
6.8 Statement on the none-standard opinion issued by the CPA
□applicable √ not applicable
6.9 Profit distribution or capitalizing of common reserves adopted by the Board of Directors
According to the Auditors’ Report issued by Ascenda Certified Public Accountants, t he Company has realized net profit
attributable to the owners of the parent company of RMB55,063,374.25 in year 2010. As of the end of report term, the consolidated
retained profit attributable to the parent company was RMB153,115,142.18. The parent company has realized the net profit of
RMB44,747,971.25, surplus reserves was provided at RMB4,474,797.13, and the retained profit at the end of report term was
RMB170,506,646.52. No profit distribution will be carried out for 2010 and all of the profits will be reserved for business expanding in
2011.
The Company plans to capitalize the capital common reserves to the whole shareholders. As of December 31 st 2010, the balance of
capital reserves was audited to RMB295,033,359.54 and surplus reserves was RMB17,834,977.97. While RMB252,303,302 of capital
reserves will be capitalized to capital shares. On the base of total capital shares amounted 504,606,604, 5 new shares will be added
upon each 10 shares. Namely 5 new shares to each 10 A-shares, totally 140,319,572 shares are about to be added; and 5 new shares to
each 10 B-shares, totally 111,983,730 are about to be added. The capital shares of the Company will become 756,909,906 after the
capitalization.
Dividend distribution in last three years:
In RMB Yuan
Percentage in net profit attributable to
Dividend Cash dividend Net profit attributable to the owners of Distributable profit
owners of the PLC in the consolidated
year (tax included) the PLC in the consolidated statement of the year
statement
2009 0.00 44,052,511.46 0.00% 57,181,879.02
2008 0.00 23,260,881.91 0.00% -20,153,902.80
Year 2007 0.00 24,386,023.62 0.00% -3,393,994.68
Dividend accumulated in the latest three years over the average
0.00%
annual net profit (%)
No cash dividend proposal was raised though the Company is making profit for the report term.
√ applicable □ not applicable
Reason for making profit but not have any dividend plan Plan for the profit not distributed
Reserved all for expanding in 2011 Used for business expanding 2011
§7 Significant Events
7.1 Acquisition
□applicable √ not applicable
7.2 Selling of property
√ applicable □ not applicable
In RMB10 thousand
Profit
contributed
Gain/loss
by the sold Debt &
from Related Completely Relationship
The other party Assets Date of assets from Pricing credit
Price disposal transaction transferred with the
of trade disposed disposal the beginning policy transferred
of the or not or not other party
of year until or not
asset
the day of
being sold
Nanchang Land of
Jan 18, market Not
High-Tech Zone Fangda 2010
3,060.00 0.00 989.00 No
price
Yes No
applicable
Administration Aluminum
12
China Fangda Group Co., Ltd. Annual Report 2010 (Summary)
Committee
Impact of the issues said in 7.1 and 7.2 on the continuity and stability of the management
For the purpose of further integrating the industrial advantages, the Company has suspended the production of aluminum section
materials under Jiangxi Fangda New Aluminum Co., Ltd. – one of the fully-owned subsidiaries of the Company. This made no
influence on other businesses of the company.
7.3 Significant Guarantees
√ applicable □ not applicable
In RMB10 thousand
External Guarantee (Exclude controlled subsidiaries)
Actual date of
Date and Ref. of Amount of Related
Guarantee occurring Actual amount Type of Completed
the announcement the Term party or
provided to (signing date of of guarantee guarantee or not
about the guarantee guarantee not
agreements
Total of external guarantee
Total of external guarantee approved in
0.00 actually occurred in the report 0.00
the report term (A1)
term (A2)
Total of external guarantee
Total of external guarantee approved as of
0.00 actually occurred as of end of 0.00
end of report term (A3)
report term (A4)
Guarantee provided to controlled subsidiaries
Actual date of
Date and Ref. of Amount of Related
Guarantee occurring Actual amount Type of Completed
the announcement the Term party or
provided to (signing date of of guarantee guarantee or not
about the guarantee guarantee not
agreements
"2010-2-12 since engage
Fangda Joint of contract to
Announcement No. 20,000.00 Jun 29, 2010 12,358.00 No No
Decoration liabilities 2 years upon
2010-06 due of debt
"2010-2-12 since engage
Fangda Joint of contract to
Announcement No. 12,000.00 Feb 10 2010 7,806.00 No No
Decoration liabilities 2 years upon
2010-07 due of debt
"2010-2-12 since engage
Fangda Joint of contract to
Announcement No. 25,000.00 Jun 30 2010 8,701.00 No No
Automatic liabilities 2 years upon
2010-08 due of debt
"2010-2-12 since engage
Fangda Joint of contract to
Announcement No. 6,000.00 Nov 03 2010 3,981.00 No No
Automatic liabilities 2 years upon
2010-09 due of debt
"2010-2-12 since engage
Fangda New Joint of contract to
Announcement No. 5,000.00 Jun 13, 2010 5,000.00 No No
Materials liabilities 2 years upon
2010-10 due of debt
"2010-2-12 since engage
Fangda New Joint of contract to
Announcement No. 5,800.00 Jun 25, 2010 4,430.00 No No
Materials liabilities 2 years upon
2010-11 due of debt
"2010-2-12 since engage
Fangda New Joint of contract to
Announcement No. 2,700.00 Sept 29 2010 2,700.00 No No
Materials liabilities 2 years upon
2010-12 due of debt
Fangda August19, 2010 since engage
Decoration, Joint of contract to
Announcement No. 10,000.00 Sept 06 2010 1,652.00 No No
Fangda liabilities 2 years upon
Automatic 2010-27 due of debt
13
China Fangda Group Co., Ltd. Annual Report 2010 (Summary)
Total of guarantee to subsidiaries approved in the report Total of guarantee to subsidiaries actually
86,500.00 56,140.53
term (B1) occurred in the report term (B2)
Total of balance of guarantee actually
Total of guarantee to subsidiaries approved as of the report
86,500.00 provided to the subsidiaries as of end of 46,629.00
term (B3)
report term (B4)
Total of guarantee provided by the Company (i.e. total of the above two items)
Total of guarantee approved in the report term Total of guarantee occurred in the report
86,500.00 56,140.53
(A1+B1) term (A2+B2)
Total of guarantee approved as of end of report term Total of guarantee occurred as of the end
86,500.00 46,629.00
(A3+B3) of report term
Percentage of the total guarantee occurred (A4+B4) on net asset of the
46.17%
Company
In which:
Guarantees provided to the shareholders, substantial controllers and the
0.00
related parties (C)
Guarantee provided directly or indirectly to objects with over 70% of liability
0.00
on asset ratio (D)
Amount of guarantee over 50% of the net asset (E) 0.00
Total of the above 3 * (C+D+E) 0.00
Statement on the possible joint liabilities on the guarantees not due yet None
7.4 Significant Related Transactions
7.4.1 Related transactions regarding normal operation
□applicable √ not applicable
7.4.2 Related credit and debt transaction
□applicable √ not applicable
7.4.3 Capital adoption and repaying by the main shareholder and its subsidiaries
□applicable √ not applicable
7.5 Financing proxy
□applicable √ not applicable
7.6 Fulfilling of commitment issues
Commitment made by the PLC, its directors, supervisors, executives, and shareholders with 5% or over shares of the Company, and
its substantial dominator in the report term or carried over to the report term:
□applicable √ not applicable
7.7 Material Lawsuits/Arbitrations
√ applicable □ not applicable
1. 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.
14
China Fangda Group Co., Ltd. Annual Report 2010 (Summary)
2. 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.
7.8 Notes to the other Significant Events and their Influences and Analysis on the Solutions
7.8.1 Securities investment
□applicable √ not applicable
7.8.2 Holding of shares of other listed companies
√ applicable □ not applicable
In RMB Yuan
Change of
Book value Gain/loss of
Share owners’ Accounting Source of
Stock Code Stock ID Initial investment at the end of the report
portion equity in the subject shares
term term
report term
600800 ST Magnetic 4,850,000.00 0.11% 4,347,000.00 0.00 584,519.45
Disposable Debt paid
Card financial asset in kind
Total 4,850,000.00 - 4,347,000.00 0.00 584,519.45 - -
7.8.3 Shares of other PLCs the Company is planning to holding in possession
□applicable √ not applicable
7.8.4 Trading of shares of other listed companies
√ applicable □ not applicable
In RMB Yuan
Amount of
shares at Shares bought in Shares sold in the Amount at the Investment
Name of shares Capital used
beginning of the report term report term end of term income gained
term
Sihuan Biology 971,989 0 971,989 0 0 3,176,516.97
7.8.5 Other misc. income subjects
In RMB Yuan
Occurred current Occurred in previous
Items
term term
1. Gains (losses) from sellable financial assets 850,589.04 3,911,229.29
Less: Income tax influence of sellable financial assets 266,069.59 905,676.83
Net amount written into other gains and transferred into gain/loss in previous terms 2,694,453.18 5,697,539.05
Sub-total -2,109,933.73 -2,691,986.59
2. Shares in the other misc. income subjects in the investee on equity basis
Less: Income tax influence of shares in other gains of investee 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 3,315,075.00
15
China Fangda Group Co., Ltd. Annual Report 2010 (Summary)
Less: Income tax influence of cash flow hedge instruments 469,908.25
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
Sub-total -2,845,166.75 2,845,166.75
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 -4,955,100.48 153,180.16
§8 Report of the Supervisory Committee
√ applicable □ not applicable
1. Meetings held in the report term, and the resolutions
(1) The 8h meeting of the 5th term of Supervisory Committee was held in the afternoon of Feb 25, 2010 in the meeting room on the 5th
floor of Fangda Technologies Building. The resolutions were published by Feb 27 2010 issues of Securities Times, China Securities
Daily, Shanghai Securities Daily and Hong Kong Commercial Daily.
(2) The 9th meeting of the 5th term of Supervisory Committee was held in the morning of April 22, 2010 in the meeting room on the
5th floor of Fanda Technologies Building. The 1st Quarterly Report 2010 was examined and passed at the meeting.
(3) The 10th meeting of the 5th term of Supervisory Committee was held in the afternoon of August 17 2010 in the meeting room on
the 5th floor of Fanda Technologies Building. The Interim Report 2010 and the summary were examined at the meeting.
(4) The 11th meeting of the 5th Supervisory Committee was held in the afternoon of October 21, 2010 in the meeting room at the 5th
floor of Fangda Technologies Building. The 3rd Quarterly Report 2010 was examined on the meeting.
(5) The 12th meeting of the 4th Supervisory Committee was held in the afternoon of December 29, 2010 in the meeting room at the 5th
floor of Fangda Technologies Building. The improving plan on problems discovered by routine investigation by Shenzhen Securities
Regulatory Office.
2. The Supervisory Committee issues the independent opinion on the following issues:
(1) The Company has already established a mature internal control system and has been improving it constantly. The procedure of
decision-making was in conformity with Company Law and Articles of Association of the Company. The directors and senior
executives had no actions of breaking national laws and regulations and Articles of Association or damaging the interest of the
Company when they performed their duties.
(2) The Company has found the Information Disclosure System and was implemented strictly according to the rules.
(3) Ascenda Certified Public Accountants issued standard auditing report without qualified opinion for the financial report of 2010. The
financial report is frankly reflecting the financial situation and business performance of the Company.
(4) The investment projects were the same with those promised in “Private share placing of A shares in 2009” at private issuing of A
shares.
(5) Asset purchasing or selling were on rational prices, and no under table transactions were conducted. No operation was done
harming the shareholders’ interests or cause losses of the Company’s capital.
(6) All of the related transactions in the report term were related to daily operation of the Company and made no impairment on the
benefit of the Company or shareholders.
3. The Committee examined the Self-assessment Report on Internal Controlling and held no disagreeing opinion.
§9 Financial Report
9.1 Auditor’s Opinion
Financial Report Yes
Auditors’ Opinion Standard report without qualified opinion
16
China Fangda Group Co., Ltd. Annual Report 2010 (Summary)
Ref. of Auditors’ Report 天健正信审（2011）GF 字第 020037 号
Title of the report Auditor’s Report
Receiver of the Auditors’
Shareholders of China Fangda Group Co., Ltd.
Report
We have audited the Financial Statements of China Fangda Group Co., Ltd. (“Fangda Group”) attached
hereafter, including the Balance Sheet and Consolidated Balance Sheet ended December 31, 2010 and the
Introduction Income Statement, Consolidated Income Statement, Cash Flow Statement, Consolidated Cash Flow
Statement, Statement on Change of Shareholders’ Equity, Consolidated Statement on Change of
Shareholders’ Equity of the year 2010, as well as the Notes to the Financial Statements.
Preparing of the Financial Statements according to Enterprise Accounting Standard is the responsibility of
Responsibilities of the the management of the Company. This responsibility is including: (1) Design, implement and maintain the
executives on the internal control system related to producing of the Financial Statements, to prevent the Financial
Financial Statements Statements from major false presentation due to cheating or error; (2) Select and use of appropriate
accounting policies; (3) Make reasonable estimations.
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit in accordance with the Chinese Auditing Standards issued by the Chinese Institute of Certified
Public Accountants. Those standards require that we comply with ethical requirements and plan and
perform the audit to obtain a reasonable assurance as to whether the financial statements are free from
material misstatement.
Auditing works are involving in auditing practices to obtain evidences regarding the amounts and
presentation of the Financial Statements. Selecting of auditing practices is based on the CPA’s judgment,
Responsibility of the including evaluation on the risks of major false statements due to cheating or error. At evaluating of the
CPA risks, we’ve considered the relative internal control system related to the preparation of the Financial
Statements. However we don’t comment on the effectiveness of the internal control system. The auditing
works also include evaluations on the felicitousness of accounting policy selecting, the rationality of
accounting estimations, and the overall presentation of the Financial Statements as well.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
We believe that Fangda Group has been following with the Enterprise Accounting Standard in preparing of
the Financial Statements. The Financial Statements is reflecting, in all important aspects, the financial
Auditors’ Opinion
situation of Fangda Group as of December 31, 2010, and the business performance and cash flow of year
2010.
No-standard opinion None
Name of the CPA Ascenda Certified Public Accountants
Address of the CPA A-12/F, Global Trade Center, 36 Beishanhuan Rd. East, Dongcheng District, Beijing
Date of the report
Name of the certified accountants
Zhou Junchao, Chen Zhaoxin
9.2 Financial Statements
9.2.1 Balance Sheet
Prepared by China Fangda Group Co., Ltd. Ended December 31, 2010 RMB Yuan
Balance at the end of term Balance at the beginning of year
Items
Consolidated Parent company Consolidated Parent company
Current asset:
Monetary capital 506,295,863.70 30,547,718.91 225,638,874.09 42,274,488.50
Settlement provision
Outgoing call loan
Transactional financial assets
Notes receivable 16,491,007.92 620,000.00
Account receivable 396,673,564.76 7,917,726.90 333,653,242.73 10,360,034.57
17
China Fangda Group Co., Ltd. Annual Report 2010 (Summary)
Prepayment 20,266,020.05 366,736.00 14,855,691.29 142,638.53
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable 51,300.00 360,525.00
Dividend receivable 43,936,500.00 68,300,000.00
Other account receivable 39,235,264.87 200,454,969.75 34,909,899.09 254,201,660.72
Repurchasing of financial assets
Inventories 280,285,486.41 198,970,648.46
Non-current asset due in 1 year
Other current asset 3,315,075.00
Total of current asset 1,259,298,507.71 283,223,651.56 812,323,955.66 375,278,822.32
Non-current assets
Disburse of consigned loans
Disposable financial asset 4,347,000.00 4,347,000.00 7,520,445.42 3,496,410.96
Expired investment in possess
Long-term receivable
Long-term share equity investment 658,733,745.58 2,997,216.45 327,121,953.02
Investment properties 271,226,332.73 262,602,432.73 259,497,678.80 251,001,478.80
Fixed assets 240,554,714.52 56,934,198.94 259,250,051.32 56,120,248.80
Construction in process 56,762,380.64 87,378.64 18,327,957.02
Engineering goods
Fixed asset disposal 586,285.67 455,423.65
Production physical assets
Gas & petrol
Intangible assets 114,530,578.15 10,323,163.72 78,469,313.92 10,270,993.34
R&D expense 1,182,970.28 1,185,899.73
Goodwill 8,197,817.29 8,197,817.29
Long-term amortizable expenses 3,062,071.65
Differed income tax asset 31,412,500.20 15,161,997.10 34,588,252.85 18,497,571.25
Other non-current asset
Total of non-current assets 731,862,651.13 1,008,189,916.71 670,490,056.45 666,508,656.17
Total of assets 1,991,161,158.84 1,291,413,568.27 1,482,814,012.11 1,041,787,478.49
Current liabilities
Short-term loans 397,000,000.00 200,000,000.00 370,000,000.00 210,000,000.00
Loan from Central Bank
Deposit received and hold for others
Call loan received
Trade off financial liabilities
Notes payable 60,226,018.65 24,166,495.62
Account payable 296,531,749.82 1,901,490.41 200,145,847.34 7,653,666.23
Prepayment received 48,308,874.47 715,925.50 82,972,481.39 771,848.60
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 14,047,721.00 881,767.40 4,583,925.93 10,251.76
Tax payable 21,520,643.71 930,370.30 30,026,775.63 1,156,239.74
18
China Fangda Group Co., Ltd. Annual Report 2010 (Summary)
Interest payable 610,850.84 308,275.00 557,551.25 323,688.75
Dividend payable
Other account payable 25,384,587.91 70,841,835.18 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
Total of current liability 863,630,446.40 275,579,663.79 741,530,815.06 414,439,746.91
Non-current liabilities
Long-term borrowings
Bond payable
Long-term payable
Special payable
Expectible liabilities 347,657.52
Differed income tax liability 28,289,997.60 27,852,316.45 22,622,907.36 21,285,505.98
Other non-recurring liabilities 4,564,850.00 4,250,000.00
Total of non-current liabilities 33,202,505.12 27,852,316.45 26,872,907.36 21,285,505.98
Total of liability 896,832,951.52 303,431,980.24 768,403,722.42 435,725,252.89
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 334,434,014.92 295,033,359.54 80,622,488.67 35,682,213.36
Less: Shares in stock
Special reserves
Surplus reserves 17,834,977.97 17,834,977.97 13,360,180.84 13,360,180.84
Common risk provision
Retained profit 153,115,142.18 170,506,646.52 102,526,565.06 130,233,472.40
Different of foreign currency translation
Total of owner’s equity belong to the parent company 1,009,990,739.07 987,981,588.03 623,295,593.57 606,062,225.60
Minor shareholders’ equity 84,337,468.25 91,114,696.12
Total of owners’ equity 1,094,328,207.32 987,981,588.03 714,410,289.69 606,062,225.60
Total of liabilities and owners’ equity 1,991,161,158.84 1,291,413,568.27 1,482,814,012.11 1,041,787,478.49
9.2.2 Income Statement
Prepared by: China Fangda Group Co., Ltd. Year 2010 RMB Yuan
Amount of the Current Term Amount of the Previous Term
Items Parent Parent
Consolidated Consolidated
company company
I. Total revenue 1,161,933,356.48 42,313,848.48 912,979,118.31 37,582,118.68
Incl. Business income 1,161,933,356.48 42,313,848.48 912,979,118.31 37,582,118.68
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 1,129,351,011.11 49,028,192.71 893,025,527.22 41,984,825.88
Incl. Business cost 955,678,459.47 12,498,134.64 749,102,723.26 10,017,888.78
19
China Fangda Group Co., Ltd. Annual Report 2010 (Summary)
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 18,386,141.86 3,152,407.77 23,057,190.24 3,304,849.18
Sales expense 31,891,352.97 1,262,950.47 23,714,005.65 1,301,119.76
Administrative expense 94,339,378.92 21,119,463.52 68,631,010.86 15,628,500.95
Financial expenses 19,556,578.76 5,705,104.69 18,013,928.09 5,531,547.52
Asset impairment loss 9,499,099.13 5,290,131.62 10,506,669.12 6,200,919.69
Plus: Gains from change of fair value (“-“ for loss) 13,921,217.90 13,793,517.90 6,322,964.35 6,011,864.35
Investment gain (“-“ for loss) 3,134,395.37 43,936,500.00 16,912,970.16 68,300,000.00
Incl. Investment gains from affiliates
Gains from currency exchange (“-“ for loss)
III. Operational profit (“-“ for loss) 49,637,958.64 51,015,673.67 43,189,525.60 69,909,157.15
Plus: Non business income 20,201,611.90 3,932,797.05 8,181,048.77 1,949,488.48
Less: Non-business expenses 2,184,230.14 564,184.44 6,262,272.08 37,087.31
Incl. Loss from disposal of non-current assets 800,599.49 133,324.44 773,922.72 9,804.60
IV. Gross profit (“-“ for loss) 67,655,340.40 54,384,286.28 45,108,302.29 71,821,558.32
Less: Income tax expenses 19,369,194.02 9,636,315.03 8,171,390.16 2,106,724.32
V. Net profit (“-“ for net loss) 48,286,146.38 44,747,971.25 36,936,912.13 69,714,834.00
Net profit attributable to the owners of parent company 55,063,374.25 44,747,971.25 44,052,511.46 69,714,834.00
Minor shareholders’ equity -6,777,227.87 -7,115,599.33
VI. Earnings per share:
(I) Basic earnings per share 0.11 0.10
(II) Diluted earnings per share 0.11 0.10
VII. Other misc. incomes -4,955,100.48 584,519.45 153,180.16 2,415,200.55
VIII. Total of misc. incomes 43,331,045.90 45,332,490.70 37,090,092.29 72,130,034.55
Total of misc. incomes attributable to the owners of the
50,108,273.77 44,205,691.62 72,130,034.55
parent company
Total misc gains attributable to the minor shareholders -6,777,227.87 45,332,490.70 -7,115,599.33
Merger of entities under common control, the net profit realized by the merged party was RMB0.00.
9.2.3 Cash Flow Statement
Prepared by: China Fangda Group Co., Ltd. Year 2010 RMB Yuan
Amount of the Current Term Amount of the Previous Term
Items Parent
Consolidated Parent company Consolidated
company
I. Net cash flow from business operation
Cash received from sales of products and providing of
1,102,826,437.95 34,489,847.83 853,491,720.30 54,795,225.16
services
Net increase of customer deposits and capital kept for
0.00 0.00 0.00 0.00
brother company
Net increase of loans from central bank 0.00 0.00 0.00 0.00
Net increase of inter-bank loans from other financial bodies 0.00 0.00 0.00 0.00
20
China Fangda Group Co., Ltd. Annual Report 2010 (Summary)
Cash received against original insurance contract 0.00 0.00 0.00 0.00
Net cash received from reinsurance business 0.00 0.00 0.00 0.00
Net increase of client deposit and investment 0.00 0.00 0.00 0.00
Net increase of trade financial asset disposal 0.00 0.00 0.00 0.00
Cash received as interest, processing fee, and commission 0.00 0.00 0.00 0.00
Net increase of inter-bank fund received 0.00 0.00 0.00 0.00
Net increase of repurchasing business 0.00 0.00 0.00 0.00
Tax returned 1,650,016.66 655,099.67
Other cash received from business operation 40,220,467.87 535,770,873.96 57,852,314.68 375,539,069.38
Sub-total of cash inflow from business activities 1,144,696,922.48 570,260,721.79 911,999,134.65 430,334,294.54
Cash paid for purchasing of merchandise and services 959,849,697.89 12,235,675.54 668,950,455.37 10,679,775.45
Net increase of client trade and advance 0.00 0.00 0.00 0.00
Net increase of savings in central bank and brother
0.00 0.00 0.00 0.00
company
Cash paid for original contract claim 0.00 0.00 0.00 0.00
Cash paid for interest, processing fee and commission 0.00 0.00 0.00 0.00
Cash paid for policy dividend 0.00 0.00 0.00 0.00
Cash paid to staffs or paid for staffs 80,446,172.23 6,390,488.89 51,277,397.22 5,047,013.02
Taxes paid 52,925,005.20 4,037,378.92 44,758,939.11 4,918,133.30
Other cash paid for business activities 82,663,310.13 605,883,833.61 100,313,427.03 378,497,735.92
Sub-total of cash outflow from business activities 1,175,884,185.45 628,547,376.96 865,300,218.73 399,142,657.69
Cash flow generated by business operation, net -31,187,262.97 -58,286,655.17 46,698,915.92 31,191,636.85
II. Cash flow generated by investing
Cash received from investment retrieving 854,089.54 9,837,360.06
Cash received as investment gains 3,176,516.97 68,300,000.00 16,925,049.25
Net cash retrieved from disposal of fixed assets, intangible
30,073,385.67 3,200.00 1,530,661.09 7,160.00
assets, and other long-term assets
Net cash received from disposal of subsidiaries or other
0.00 0.00 0.00 0.00
operational units
Other investment-related cash received 0.00 0.00 0.00 0.00
Sub-total of cash inflow due to investment activities 34,103,992.18 68,303,200.00 28,293,070.40 7,160.00
Cash paid for construction of fixed assets, intangible assets
88,201,467.27 1,344,712.01 17,722,123.33 273,942.24
and other long-term assets
Cash paid as investment 0.00 335,385,071.73 0.00 0.00
Net increase of loan against pledge 0.00 0.00 0.00 0.00
Net cash received from subsidiaries and other operational
0.00 0.00 0.00 0.00
units
Other cash paid for investment activities 0.00 0.00 0.00 0.00
Sub-total of cash outflow due to investment activities 88,201,467.27 336,729,783.74 17,722,123.33 273,942.24
Net cash flow generated by investment -54,097,475.09 -268,426,583.74 10,570,947.07 -266,782.24
III. Cash flow generated by financing
Cash received as investment 340,499,960.00 340,499,960.00 50,000,000.00 0.00
Incl. Cash received as investment from minor shareholders 0.00 0.00 50,000,000.00 0.00
Cash received as loans 623,000,000.00 410,000,000.00 671,602,013.00 284,055,495.00
Cash received from bond placing 0.00 0.00 0.00 0.00
Other financing-related cash received 0.00 0.00 66,867,872.77 5,087,653.00
Subtotal of cash inflow from financing activities 963,499,960.00 750,499,960.00 788,469,885.77 289,143,148.00
Cash to repay debts 596,000,000.00 420,000,000.00 724,955,902.86 269,015,000.00
21
China Fangda Group Co., Ltd. Annual Report 2010 (Summary)
Cash paid as dividend, profit, or interests 19,817,895.61 11,260,773.75 21,232,722.22 11,493,561.32
Incl. Dividend and profit paid by subsidiaries to minor
0.00 0.00 0.00 0.00
shareholders
Other cash paid for financing activities 4,251,102.20 4,251,102.20 987,419.79 987,419.79
Subtotal of cash outflow due to financing activities 620,068,997.81 435,511,875.95 747,176,044.87 281,495,981.11
Net cash flow generated by financing 343,430,962.19 314,988,084.05 41,293,840.90 7,647,166.89
IV. Influence of exchange rate alternation on cash and cash
-91,059.81 -1,614.73 -73,259.44 260.77
equivalents
V. Net increase of cash and cash equivalents 258,055,164.32 -11,726,769.59 98,490,444.45 38,572,282.27
Plus: Balance of cash and cash equivalents at the beginning
210,823,550.83 42,024,488.50 112,333,106.38 3,452,206.23
of term
VI. Balance of cash and cash equivalents at the end of term 468,878,715.15 30,297,718.91 210,823,550.83 42,024,488.50
22
China Fangda Group Co., Ltd. Annual Report 2010 (Summary)
7.2.4 Change in Owners’ Equities (Consolidated)
Prepared by: China Fangda Group Co., Ltd. Year 2010 in RMB yuan
Amount of the Current Term Amount of Last Year
Owners’ Equity Attributable to the Parent Company Minor Owners’ Equity Attributable to the Parent Company Minor
Capital Total of Capital Total of
Items Less: Common sharehol Less: Common sharehol
paid in Capital Special Surplus Retained owners’ paid in Capital Special Surplus Retained owners’
Shares in risk Others ders’ Shares in risk Others ders’
(or share reserves reserves reserves profit equity (or share reserves reserves reserves profit equity
stock provision equity stock provision equity
capital) capital)
426,786, 80,622,4 13,360,1 102,526, 91,114,6 714,410, 426,786, 61,095,3 6,388,69 65,445,5 67,604,2 627,320,
I. Balance at the end of last year
359.00 88.67 80.84 565.06 96.12 289.69 359.00 08.51 7.44 37.00 95.45 197.40
Plus: Change of accounting
policy
Correcting of previous errors
Others
II. Balance at the beginning of 426,786, 80,622,4 13,360,1 102,526, 91,114,6 714,410, 426,786, 61,095,3 6,388,69 65,445,5 67,604,2 627,320,
current year 359.00 88.67 80.84 565.06 96.12 289.69 359.00 08.51 7.44 37.00 95.45 197.40
III. Changed in the current year (“- 77,820,2 253,811, 4,474,79 50,588,5 -6,777,2 379,917, 19,527,1 6,971,48 37,081,0 23,510,4 87,090,0
“ for decrease) 45.00 526.25 7.13 77.12 27.87 917.63 80.16 3.40 28.06 00.67 92.29
55,063,3 -6,777,2 48,286,1 44,052,5 -7,115,5 36,936,9
(I) Net profit
74.25 27.87 46.38 11.46 99.33 12.13
-4,955,1 -4,955,1 153,180. 153,180.
(II) Other misc. income
00.48 00.48 16 16
-4,955,1 55,063,3 -6,777,2 43,331,0 153,180. 44,052,5 -7,115,5 37,090,0
Total of (I) and (II)
00.48 74.25 27.87 45.90 16 11.46 99.33 92.29
(III) Investment or decreasing of 47,945,2 288,641, 336,586, 19,374,0 30,626,0 50,000,0
capital by owners 00.00 671.73 871.73 00.00 00.00 00.00
47,945,2 288,641, 336,586, 30,626,0 30,626,0
1. Capital inputted by owners
00.00 671.73 871.73 00.00 00.00
2. Amount of shares paid and
accounted as owners’ equity
19,374,0 19,374,0
3. Others
00.00 00.00
4,474,79 -4,474,7 6,971,48 -6,971,4
(IV) Profit allotment
7.13 97.13 3.40 83.40
1. Providing of surplus 4,474,79 -4,474,7 6,971,48 -6,971,4
reserves 7.13 97.13 3.40 83.40
2. Common risk provision
3. Allotment to the owners (or
shareholders)
4. Others
(V) Internal transferring of 29,875,0 -29,875,
owners’ equity 45.00 045.00
1. Capitalizing of capital 29,875,0 -29,875,
reserves (or to capital shares) 45.00 045.00
2. Capitalizing of surplus
23
China Fangda Group Co., Ltd. Annual Report 2010 (Summary)
reserves (or to capital shares)
3. Making up losses by
surplus reserves
4. Others
(VI) Special reserves
1. Provided this year
2. Used this term
(VII) Others
504,606, 334,434, 17,834,9 153,115, 84,337,4 1,094,32 426,786, 80,622,4 13,360,1 102,526, 91,114,6 714,410,
IV. Balance at the end of this term
604.00 014.92 77.97 142.18 68.25 8,207.32 359.00 88.67 80.84 565.06 96.12 289.69
9.2.5 Change in Owners’ Equities (Parent Co.)
Prepared by: China Fangda Group Co., Ltd. Year 2010 in RMB yuan
Amount of the Current Term Amount of Last Year
Less: Less:
Capital paid in Common Total of Capital paid in Common Total of
Items Capital Shares Special Surplus Capital Shares Special Surplus
(or share risk Retained profit (or share risk Retained profit
reserves in reserves reserves owners’ equity reserves in reserves reserves owners’ equity
capital) provision capital) provision
stock stock
I. Balance at the
426,786,359.00 35,682,213.36 13,360,180.84 130,233,472.40 606,062,225.60 426,786,359.00 35,682,213.36 6,388,697.44 67,490,121.80 536,347,391.60
end of last year
Plus: Change
of accounting
policy
Correcting of
previous errors
Others
II. Balance at
the beginning of 426,786,359.00 35,682,213.36 13,360,180.84 130,233,472.40 606,062,225.60 426,786,359.00 35,682,213.36 6,388,697.44 67,490,121.80 536,347,391.60
current year
III. Changed in
the current year
77,820,245.00 259,351,146.18 4,474,797.13 40,273,174.12 381,919,362.43 6,971,483.40 62,743,350.60 69,714,834.00
(“-“ for
decrease)
(I) Net profit 44,747,971.25 44,747,971.25 69,714,834.00 69,714,834.00
(II) Other
584,519.45 584,519.45
misc. income
Total of (I)
584,519.45 44,747,971.25 45,332,490.70 69,714,834.00 69,714,834.00
and (II)
(III)
Investment or
decreasing of 47,945,200.00 288,641,671.73 336,586,871.73
capital by
owners
1. Capital
inputted by 47,945,200.00 288,641,671.73 336,586,871.73
owners
24
China Fangda Group Co., Ltd. Annual Report 2010 (Summary)
2. Amount
of shares paid
and accounted
as owners’
equity
3. Others
(IV) Profit
4,474,797.13 -4,474,797.13 6,971,483.40 -6,971,483.40
allotment
1.
Providing of 4,474,797.13 -4,474,797.13 6,971,483.40 -6,971,483.40
surplus reserves
2. Common
risk provision
3.
Allotment to the
owners (or
shareholders)
4. Others
(V) Internal
transferring of 29,875,045.00 -29,875,045.00
owners’ equity
1.
Capitalizing of
capital reserves 29,875,045.00 -29,875,045.00
(or to capital
shares)
2.
Capitalizing of
surplus reserves
(or to capital
shares)
3. Making
up losses by
surplus reserves
4. Others
(VI) Special
reserves
1. Provided
this year
2. Used this
term
(VII) Others
IV. Balance at
the end of this 504,606,604.00 295,033,359.54 17,834,977.97 170,506,646.52 987,981,588.03 426,786,359.00 35,682,213.36 13,360,180.84 130,233,472.40 606,062,225.60
term
25
China Fangda Group Co., Ltd. Annual Report 2010 (Summary)
9.3 Explanation on changes of accounting policies, accounting estimation, and accounting method
□applicable √ not applicable
9.4 Content, amount, reason and impact of major accounting errors
□applicable √ not applicable
9.5 Explanation on changes of consolidation range comparing with the previous annual report
√ applicable □ not applicable
The consolidation range was not changed. Dongguan Fangda New Materials Co., Ltd. was founded as fully-owned subsidiary of the
Company. Fangda Decoration is holding 100% of the shares with registered capital of RMB212.80 million.
26
