Stock Code: 000055,200055     Stock ID: Fangda Group, Fangda B        Announcement No.
2011-26



                       China Fangda Group Co., Ltd.
                  Announcement on External Investment


     Important Statement: The members of the Board and the Company
acknowledge being responsible, individually and jointly, for the truthfulness,
accuracy, and completeness of the announcement. Not any false record, misleading
statement or significant omission carried in this announcement.
    I. External Investment Overview
    1. General information about the external investment
     According to the Company’s development strategy and to satisfy the market
demand, the Proposal of External Investment was adopted at the 4th meeting of the 6th
term of Board held on August 23, 2011. It has been approved by the Board to
establish the China Fangda Western Headquarter and Manufacturing Base in the New
Material Industry Zone located in the city of Chengdu.
    2. Voting procedures of the board meeting on this proposal
   The External Investment Proposal of China Fangda Group was adopted at the 4th
meeting of the 6th term of Board with 7 votes in favor, 0 objection and 0 waive.
    3. This investment will not involved in any related transaction
    II. Subject of investment: the Company
    III. Particulars of the investment
    1. Way of investment: cash investment financed by the Company itself.
    2. Investment projects: productivity expanding of energy saving curtain wall and
materials, railway equipment, and semi-conductor lighting products.
    IV. Influence of the external investment on the Company
     The national government has reinforced the development of the western areas in
recent years, especially after the great earthquake in Wenchuan, Sichuan. As the
western center of logistics, business, finance, technologies, transportation, and
telecommunication, the city of Chengdu has been regarded by the central government
as the important bases of high-tech, manufacturing, modern service industry, and
modern agriculture. Chengdu has become the “engine” of development of west China,
and leading the progress of urbanization. At present, Chengdu is enjoying preferable
policies and good business environment. A number of top 500 enterprises of the world
have set their feet in construction and development of the city.
     Along with growth of the Company’s businesses, the Company has been
expanding its operation in western areas of the country. Production has been falling
behind demand. In order to and optimize the geographical distribution of industries
and implement the company's strategy to strengthen and expand dominant industries,
and with considering of reasonable geographic distribution, the Company has
established a number of manufacturing bases in Sheyang (Northeast), Hebei Sanhe
(North), Nanchang (Central), and Dongguan (South). It is necessary to setup another
base in Southwest area of China. It will contribute to make the Company a modern
high-tech enterprise combined by science and technologies, manufacturing, and sales
network. Setting up of China Fangda Western Headquarter and Manufacturing Base
will help the Company to seize the opportunities brought by rapid growth of economy
in western China and fully utilize the preferable national policies and rich resources of
materials and manpower. Practically it will reduce transportation distance, increase
gross profit ratio, and enlarge market share in the country.
    V. Documents for Reference
    Resolutions of the 4th meeting of the 6th term of Board of China Fangda Group
Co., Ltd.
    The above is for the attention of the shareholders.




                                          China Fangda Group Co., Ltd.
                                               The Board of Directors
                                                   August 25, 2011