Stock Code: 000055,200055    Stock ID: Fangda Group, Fangda B
                             Announcement No. 2012-03

                       China Fangda Group Co., Ltd.

  Public Notice on Applying for the Municipal Reconstruction Plan

The members of the Board and the Company acknowledge being responsible,
individually and jointly, for the truthfulness, accuracy, and completeness of the
announcement. There isn’t any false record, misleading statement or significant
omission carried in this announcement.


According to “The First Batch of Municipal Reconstruction Plans 2012 of Shenzhen
(Draft)” (“the Plan”) announced by Shenzhen Bureau of Municipal Planning and
Land Resource Commission on the 2nd day of February 2012. Fangda Town,
Longjing, Xili, Nanshan, Shenzhen, where the Company is located, is included in the
range of reconstruction as described by the Plan. At present the Plan is on its stage of
online and onsite public notification. The public notification period is from February
2, 2012 to February 12, 2012. For details of the public notifications please go to the
official website of Shenzhen Bureau of Municipal Planning and Land Resource
Commission or look out with Shenzhen Special Economical Zone Daily or Shenzhen
Commercial Daily.
The land of Fangda Town is covering 41,645 square meters under the Company’s
possess. It is applied to be reconstructed for purposes including industrial
development. And area of land to be used for public facilities will not less than 15%
of the total land to be reconstructed.
1. The entity of municipal reconstruction is recognized after proceeding of related
   routines according to the “Arrangement of Municipal Reconstructions”.
2. The plan mentioned in this announcement can only be implemented after it was
   approved by the authorities.
There is uncertainty attached to this application of municipal reconstruction entity. If
it was approved that the Company may enter as part of the plan of 2012, the project
may require the Company to pay supplementary price for the land using rights.
The above is for the attention of the shareholders. And the shareholders are requested
to be aware of any risk attached to this issue. The Company will announce along with
the progress.


                                              China Fangda Group Co., Ltd.
                                                  The Board of Directors
                                                     February 3, 2012