China Fangda Group Co., Ltd. The 1st Quarterly Report 2011 (Full Text)
China Fangda Group Co., Ltd.
The 1st Quarterly Report 2011 (Full Text)
§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.
1.2 Directors other than the followings presented at the Board Meeting on which this report was examined:
Name of the director
Position Reason for not presenting the meeting Name of consignee
absented
Wang Shengguo Director Business engagement Xiong Jianwei
1.3 The financial statements carried in this report are not audited.
1.4 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 quarterly report are of authentic
and complete.
§2 Company Profile
2.1 Financial highlights
In RMB Yuan
Ended this report Changed by
Ended previous year
term (%)
Gross Assets (RMB) 1,925,021,779.96 1,991,161,158.84 -3.32%
Owners’ equity attributable to the shareholders of the listed company
1,027,281,620.49 1,009,990,739.07 1.71%
(yuan)
Capital shares (shares) 504,606,604.00 504,606,604.00 0.00%
Net asset per share attributable to the shareholders of the listed company
2.04 2.00 2.00%
(Yuan/share)
Same period last Changed by
This report term
year (%)
Turnover (yuan) 261,994,647.36 192,382,554.04 36.18%
Net profit attributable to shareholders of the listed company (yuan) 16,838,681.42 11,419,167.15 47.46%
Net Cash flow generated by business operation (RMB) -92,793,091.30 -49,496,550.76
Net Cash flow per share generated by business operation (yuan/share) -0.18 -0.10
Basic earnings per share (Yuan/share) 0.033 0.025 32.00%
Diluted earnings per share (Yuan/share) 0.033 0.025 32.00%
Weighted average net
1.65% 1.82% -0.17%
income/asset ratio (%)
Weighted average net
1.40% 1.05% 0.35%
income/asset ratio less non-recurring gain/loss(%)
Non-recurring gain and loss items
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China Fangda Group Co., Ltd. The 1st Quarterly Report 2011 (Full Text)
√ applicable □ not applicable
In RMB Yuan
Note (if
Non-recurring gain and loss items Amount
applicable)
Gain/loss of non-current assets -13,590.84
Gain/loss from change of fair value of investment property measured at fair value in follow-up
3,124,240.16
measurement
Other non-business income and expenditures other than the above 343,448.85
Influenced amount of income tax -825,908.10
Influenced amount of minority shareholders’ equity -10.63
Total 2,628,179.44 -
2.2 Total of shareholders and the top 10 holders of unconditional shares
in shares
Total shareholders at the end of the report period
64,333
(accounts)
Top ten holders of the shares without subscription limitation
Amount of unconditional shares held at the
Full name of shareholder Categories
end of report term
Shenzhen Banglin Technologies Development Co.,
45,849,515 RMB common shares
Ltd.
Shenzhen Shilihe Investment Co., Ltd. 11,907,328 RMB common shares
Foreign shares placed in
Onforce International Ltd. 8,200,000
domestic exchange
Foreign shares placed in
Cao Yifan 2,313,910
domestic exchange
Foreign shares placed in
Chen Lihong 1,536,777
domestic exchange
Zhongrong International Trust Ltd. – Rongxin
1,287,773 RMB common shares
Trust Contract No.75
Zhongrong International Trust Co., Ltd. – Huian
1,227,098 RMB common shares
No.6
Foreign shares placed in
Yu Baixiang 1,130,000
domestic exchange
Foreign shares placed in
Li Yitian 1,038,900
domestic exchange
Foreign shares placed in
Lou Yuhong 990,668
domestic exchange
§3 Significant Events
3.1 Details and causations of major change in major accounting subjects and financial indices
√ applicable □ not applicable
1. Prepaid account increased by 38.98% over the beginning of year, which was caused by increasing of newly started projects;
2. Notes receivable decreased by 79.87%, which was caused by expiring of some commercial drafts;
3. Wage payable decreased by 30.47%, which was caused by distributing of annual bonus for year 2010;
4. The Company’s business was expanding, therefore the business turnover and cost have increased by 36.18% and 33.80%
respectively.
5. Increase of labor costs and fixed expenses increased to establish new branch offices had caused 38.92% of increase with
administration expenses.
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China Fangda Group Co., Ltd. The 1st Quarterly Report 2011 (Full Text)
6. Increasing of bad debt provision has increased the asset impairment loss by 343.36%.
7. Income tax has increased by 116.71%, which was caused by increasing of deferred income tax due to fluctuation of the fair value of
investment property.
8. Operational cash flow of the report term was RMB-92.79 million, which was caused by increasing of business volume and prepaid
account for materials. Increase of receivable account was because some of the project accounts are not due yet.
3.2 Progress of significant events, their influence, countermeasures, and analysis
3.2.1 None-standard opinions
□applicable √ not applicable
3.2.2 Illegal providing of capital or guarantees to the holding shareholder or its related parties or external
parties
□applicable √ not applicable
3.2.3 Signing and execution of major business contracts
√ applicable □ not applicable
I. Shenyang Xinmo’er Shopping Mall curtain wall project is proceeding as scheduled by the contract;
II. Shenzhen Jiali Construction Plaza Phase II curtain wall project is proceeding as scheduled by the contract;
III. China ASEAN (Liuzhou) Industrial Product Trade Center curtain wall project is proceeding as scheduled by the contract;
IV. Sanya Phoenix Island International Resort apartment 1, 2, 3, and 4 curtain wall project is proceeding as scheduled by the
contract;
V. Shenzhen Metro Line 1 screen door and safe door system, Shenzhen Metro Line 2 east extension screen door system, and
Shenzhen Metro Line 4 safe door system are in testing stage and will be completed in June 2011.
3.2.4 Misc.
√ applicable □ not applicable
I. The Company neither provided capital to the holding shareholder or other related parties nor provided any guarantee to external
parties;
II. No shareholder holding over 30% of shares of the Company, therefore no shareholder with over 30% shares proposed or practiced
share increasing plan.
III. No cash dividend was distributed in the report term;
IV. No investment on securities or derivate instruments conducted by the Company;
V. In the report term, there isn’t any particular sales, project contracting or service providing contract accounted for over 50% of the
main business turnover as audited, or with absolute amount over RMB1 billion.
VI. The Company save the proceeds from share placing in special bank accounts in China Construction Bank Shenzhen OCT Branch,
and CITIC Shenzhen Jinshan Branch. The Triple-party Supervising Agreement over Proceeds from Private Placing of A Shares was
engaged with the two banks and Zhongshan Securities Co., Ltd. (Zhongshan Securities) respectively on July 13, 2010. All of the
investment projects financed by this private placing of shares are implemented by the fully-owned subsidiaries of the Company. The
Triple-party Supervising Agreement over Proceeds from Private Placing of A Shares was engaged by Shenzhen Fangda Decoration
Engineering Co., Ltd. (Fangda Decoration) and Shenzhen Fangda Automatic System Co., Ltd. (Fangda Automatic) (both are the
fully-owned subsidiaries of the Company) with China Construction Bank OCT Branch and Zhongshan Securities Co., Ltd.
(Zhongshan Securities, the Sponsor) respectively on September 21, 2010. The Agreement was regarding the Energy-saving Curtain
Wall Production Expanding Project and the PSD Production Expanding Project. According to the agreement, the net amount of
RMB336,586,871.73 with interest of RMB786,667.75 (totally RMB337,373,539.48) were transferred to the special accounts of
Fangda Decoration and Fangda Automatic by RMB210,786,667.75 and RMB126,586,871.73 respectively. Upon completion of the
transmission, the special accounts in China Construction Bank OCT Branch and CITIC Jinshan Branch were balanced zero, and were
canceled on February 21, 2011 and February 23, 2011 respectively.
VII. Statement of internal control operation in the 1st quarter of 2011
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China Fangda Group Co., Ltd. The 1st Quarterly Report 2011 (Full Text)
According to the Enterprise Internal Control Criteria issued jointly by the five national departments, and the Notice on Implementing
of Internal Control Criteria in PLCs located in Shenzhen, the Company has planned and implemented a number of preparation works
in the 1st quarter of 2011.
1. Executing of works
(1) The Company has established a enterprise administration standard team (the “Administration Steam”) led by the Chairman of
Board with members from the executives of the Company and general managers of subsidiaries. An office was equipped to handle
relative daily works.
(2) As for general planning, the Administration Team has produced a plan with five stages to ensure smooth operation of related
works: stage 1, preparation; stage 2, situation analyzing; stage 3, producing of improving plan; stage 4, internal control operation
improving; stage 5, testing operation of internal control system.
(3) In aspect of employee training, the Company has released the Basic Rules of Internal Control System, and organized training
programs for related employees. Three of the executives were sent to participate the Internal Control Training Course of PLCs in
Shenzhen organized by China Securities Regulatory Commission.
(4) The Company revised the internal regulations and business flows of the Company and provided a good foundation for the further
works.
2. Progress of works comparing with the schedules in the plan
According to the 5-stage plan, the first stage shall be basically completed in the first quarter. As of March 31, all of the scheduled
works had been completed successfully.
3.3 Fulfilling of commitment issues made by the Company, shareholder, or substantial controller
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
3.4 Estimated accumulative profit from the year beginning to the end of the next report period may be of
deficits; or in comparison with the same period of the previous year, give the warning of great change and
the notice to the reasons.
□applicable √ not applicable
3.5 Major events needs to be explained
3.5.1 Investment in securities
□applicable √ not applicable
3.5.2 Reception of investigations, communications, or interviews
Main content involved and
Time/date Place Way Visitors
material provided
The Field Orient Securities Ltd., Guangzhou Pearl River Business operation and future
March 10, 2011
Company research Asset Management Ltd. development.
Shenyin Wanguo Securities, Hualin
The Field Business operation and future
March 18, 2011 Securities, Guangdong Andexin Development
Company research development.
Ltd.
3.6 Investment in derivate financial instruments
□applicable √ not applicable
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China Fangda Group Co., Ltd. The 1st Quarterly Report 2011 (Full Text)
3.6.1 Derivate financial instrument stock at end of report term
□applicable √ not applicable
§4 Attachments
4.1 Balance Sheet
Prepared by China Fangda Group Co., Ltd. March 31, 2011 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 382,156,010.98 3,884,721.88 506,295,863.70 30,547,718.91
Settlement provision
Outgoing call loan
Transactional financial assets
Notes receivable 3,320,000.00 16,491,007.92
Account receivable 482,484,362.52 6,863,302.66 396,673,564.76 7,917,726.90
Prepayment 28,166,093.43 250,000.00 20,266,020.05 366,736.00
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable 890,329.31 51,300.00
Dividend receivable 43,936,500.00 43,936,500.00
Other account receivable 49,593,103.74 200,546,013.49 39,235,264.87 200,454,969.75
Repurchasing of financial assets
Inventories 244,410,506.45 280,285,486.41
Non-current asset due in 1 year
Other current asset
Total of current asset 1,191,020,406.43 255,480,538.03 1,259,298,507.71 283,223,651.56
Non-current assets
Disburse of consigned loans
Available-for-sale financial asset 4,942,000.00 4,942,000.00 4,347,000.00 4,347,000.00
Expired investment in possess
Long-term receivable
Long-term share equity investment 658,733,745.58 658,733,745.58
Investment properties 274,350,572.89 265,712,772.89 271,226,332.73 262,602,432.73
Fixed assets 242,936,740.57 56,416,550.71 240,554,714.52 56,934,198.94
Construction in process 53,556,257.78 87,378.64 56,762,380.64 87,378.64
Engineering goods
Fixed asset disposal 590,221.77 3,936.10 586,285.67
Production physical assets
Gas & petrol
Intangible assets 113,478,791.99 10,226,697.70 114,530,578.15 10,323,163.72
R&D expense 1,238,586.78 1,182,970.28
Goodwill 8,197,817.29 8,197,817.29
Long-term amortizable expenses 3,034,483.62 3,062,071.65
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China Fangda Group Co., Ltd. The 1st Quarterly Report 2011 (Full Text)
Differed income tax asset 31,675,900.84 15,151,835.61 31,412,500.20 15,161,997.10
Other non-current asset
Total of non-current assets 734,001,373.53 1,011,274,917.23 731,862,651.13 1,008,189,916.71
Total of assets 1,925,021,779.96 1,266,755,455.26 1,991,161,158.84 1,291,413,568.27
Current liabilities
Short-term loans 383,000,000.00 200,000,000.00 397,000,000.00 200,000,000.00
Loan from Central Bank
Deposit received and hold for others
Call loan received
Trade off financial liabilities
Notes payable 44,113,797.26 60,226,018.65
Account payable 247,376,137.22 1,901,490.36 296,531,749.82 1,901,490.41
Prepayment received 41,269,890.05 693,045.60 48,308,874.47 715,925.50
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 9,767,728.64 454,329.59 14,047,721.00 881,767.40
Tax payable 26,952,374.73 833,498.98 21,520,643.71 930,370.30
Interest payable 576,756.41 308,275.00 610,850.84 308,275.00
Dividend payable
Other account payable 27,400,139.00 42,588,989.87 25,384,587.91 70,841,835.18
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 780,456,823.31 246,779,629.40 863,630,446.40 275,579,663.79
Non-current liabilities
Long-term borrowings
Bond payable
Long-term payable
Special payable
Expectible liabilities 116,168.74 347,657.52
Differed income tax liability 29,527,031.96 29,087,265.81 28,289,997.60 27,852,316.45
Other non-recurring liabilities 4,564,850.00 4,564,850.00
Total of non-current liabilities 34,208,050.70 29,087,265.81 33,202,505.12 27,852,316.45
Total of liability 814,664,874.01 275,866,895.21 896,832,951.52 303,431,980.24
Owners’ equity (or shareholders’ equity)
Capital paid in (or share capital) 504,606,604.00 504,606,604.00 504,606,604.00 504,606,604.00
Capital reserves 334,886,214.92 295,485,559.54 334,434,014.92 295,033,359.54
Less: Shares in stock
Special reserves
Surplus reserves 17,834,977.97 17,834,977.97 17,834,977.97 17,834,977.97
Common risk provision
Retained profit 169,953,823.60 172,961,418.54 153,115,142.18 170,506,646.52
Different of foreign currency translation
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China Fangda Group Co., Ltd. The 1st Quarterly Report 2011 (Full Text)
Total of owner’s equity belong to the parent company 1,027,281,620.49 990,888,560.05 1,009,990,739.07 987,981,588.03
Minor shareholders’ equity 83,075,285.46 84,337,468.25
Total of owners’ equity 1,110,356,905.95 990,888,560.05 1,094,328,207.32 987,981,588.03
Total of liabilities and owners’ equity 1,925,021,779.96 1,266,755,455.26 1,991,161,158.84 1,291,413,568.27
4.2 Income Statement
Prepared by: China Fangda Group Co., Ltd. Jan-Mar 2011 RMB Yuan
Amount of the Current Term Amount of the Previous Term
Items Parent Parent
Consolidated Consolidated
company company
I. Total revenue 261,994,647.36 8,616,275.34 192,382,554.04 8,331,140.23
Incl. Business income 261,994,647.36 8,616,275.34 192,382,554.04 8,331,140.23
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 245,619,745.83 8,451,142.39 186,004,286.40 9,820,387.75
Incl. Business cost 203,751,469.61 1,885,368.40 152,280,171.91 2,158,277.95
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 3,681,660.25 721,519.57 3,552,023.10 327,835.61
Sales expense 5,332,740.96 88,464.43 5,458,756.45 346,845.28
Administrative expense 26,858,055.00 4,748,855.39 19,332,962.37 4,145,128.38
Financial expenses 4,124,345.67 1,049,274.16 4,958,264.70 3,059,685.07
Asset impairment loss 1,871,474.34 -42,339.56 422,107.87 -217,384.54
Plus: Gains from change of fair value (“-“ for loss) 3,124,240.16 3,110,340.16
Investment gain (“-“ for loss) 3,176,516.97
Incl. Investment gains from affiliates
Gains from currency exchange (“-“ for loss)
III. Operational profit (“-“ for loss) 19,499,141.69 3,275,473.11 9,554,784.61 -1,489,247.52
Plus: Non business income 376,505.00 281,609.76 2,422,591.91
Less: Non-business expenses 46,646.99 275,208.40 960.00
Incl. Loss from disposal of non-current assets
IV. Gross profit (“-“ for loss) 19,828,999.70 3,557,082.87 11,702,168.12 -1,490,207.52
Less: Income tax expenses 4,252,501.07 1,102,310.85 1,962,293.98 -327,845.66
V. Net profit (“-“ for net loss) 15,576,498.63 2,454,772.02 9,739,874.14 -1,162,361.86
Net profit attributable to the owners of parent company 16,838,681.42 2,454,772.02 11,419,167.15 -1,162,361.86
Minor shareholders’ equity -1,262,182.79 -1,679,293.01
VI. Earnings per share:
(I) Basic earnings per share 0.033 0.025
(II) Diluted earnings per share 0.033 0.025
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China Fangda Group Co., Ltd. The 1st Quarterly Report 2011 (Full Text)
VII. Other misc. incomes 452,200.00 452,200.00 -3,510,335.98 494,199.45
VIII. Total of misc. incomes 16,028,698.63 2,906,972.02 6,229,538.16 -668,162.41
Total of misc. incomes attributable to the owners of the parent
17,290,881.42 2,906,972.02 7,908,831.17 -668,162.41
company
Total misc gains attributable to the minor shareholders -1,262,182.79 -1,679,293.01
Merger of entities under common control, the net profit realized by the merged party was RMB0.00.
4.3 Cash Flow Statement
Prepared by: China Fangda Group Co., Ltd. Jan-Mar 2011 RMB Yuan
Amount of the Current Term Amount of the Previous Term
Items Parent Parent
Consolidated Consolidated
company company
I. Net cash flow from business operation
Cash received from sales of products and providing of
207,420,626.05 8,896,673.05 154,788,742.13 8,784,225.58
services
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 933,908.51 52,546.60
Other cash received from business operation 16,213,472.39 367,942.88 15,152,594.91 1,370,415.23
Sub-total of cash inflow from business activities 224,568,006.95 9,264,615.93 169,993,883.64 10,154,640.81
Cash paid for purchasing of merchandise and services 237,922,109.48 2,297,256.11 161,866,303.00 1,373,991.47
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 24,799,906.95 2,428,598.35 16,811,719.93 1,531,029.21
Taxes paid 7,189,980.97 894,373.14 16,573,778.70 1,002,628.55
Other cash paid for business activities 47,449,100.85 2,503,483.75 24,238,632.77 4,122,126.37
Sub-total of cash outflow from business activities 317,361,098.25 8,123,711.35 219,490,434.40 8,029,775.60
Cash flow generated by business operation, net -92,793,091.30 1,140,904.58 -49,496,550.76 2,124,865.21
II. Cash flow generated by investing
Cash received from investment retrieving 854,089.54
Cash received as investment gains 3,176,516.97 8,400,000.00
Net cash retrieved from disposal of fixed assets, intangible
782.00 2,265,064.95
assets, and other long-term assets
Net cash received from disposal of subsidiaries or other
operational units
Other investment-related cash received
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China Fangda Group Co., Ltd. The 1st Quarterly Report 2011 (Full Text)
Sub-total of cash inflow due to investment activities 782.00 6,295,671.46 8,400,000.00
Cash paid for construction of fixed assets, intangible assets
3,843,065.13 254,535.00 4,828,883.06 992,230.42
and other long-term assets
Cash paid as investment
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 3,843,065.13 254,535.00 4,828,883.06 992,230.42
Net cash flow generated by investment -3,842,283.13 -254,535.00 1,466,788.40 7,407,769.58
III. Cash flow generated by financing
Cash received as investment
Incl. Cash received as investment from minor shareholders
Cash received as loans 90,000,000.00 260,000,000.00 210,000,000.00
Cash received from bond placing
Other financing-related cash received
Subtotal of cash inflow from financing activities 90,000,000.00 260,000,000.00 210,000,000.00
Cash to repay debts 104,000,000.00 25,016,713.61 250,000,000.00 224,519,441.38
Cash paid as dividend, profit, or interests 4,854,343.86 2,522,250.00 4,423,257.35 2,624,256.25
Incl. Dividend and profit paid by subsidiaries to minor
shareholders
Other cash paid for financing activities
Subtotal of cash outflow due to financing activities 108,854,343.86 27,538,963.61 254,423,257.35 227,143,697.63
Net cash flow generated by financing -18,854,343.86 -27,538,963.61 5,576,742.65 -17,143,697.63
IV. Influence of exchange rate alternation on cash and cash
-6,965.43 -3,010.63 2.70
equivalents
V. Net increase of cash and cash equivalents -115,496,683.72 -26,652,594.03 -42,456,030.34 -7,611,060.14
Plus: Balance of cash and cash equivalents at the beginning
468,878,715.15 30,252,759.44 211,430,553.39 42,024,488.50
of term
VI. Balance of cash and cash equivalents at the end of term 353,382,031.43 3,600,165.41 168,974,523.05 34,413,428.36
4.4 Auditors’ Report
Auditor’s opinion: not audited.
9
