Stock Code: 000055, 200055 Stock ID: Fangda Group, Fangda B Announcement No. 2011-08




                       China Fangda Group Co., Ltd.
Announcement on Returning of Capital Raised by Share Issuing

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 “Proposal on temporarily using the capital raised from private issuing of A
shares in 2009 to support the working capital” was adopted at the 22nd meeting of the
5th term of Board held on September 28, 2010. According to the proposal, the
Company has used RMB30 million to support the need of working capital, which was
not exceeding 10% of the total capital raised from the share issuing. The period would
not be over six months and would be returned to the special account for the capital
raised on due.
     As of March 22, 2011, the Company has returned the RMB30 million to the
special account for the capital raised. The sponsoring organization and representative
of the sponsoring organization have been informed about the fact.
     This is for the attention of all shareholders of the Company.


                                                  China Fangda Group Co., Ltd.
                                                      The Board of Directors
                                                          March 24, 2011