Stock Code: 000055, 200055 Stock ID: Fangda Group, Fangda B Announcement No. 2012-04




                       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 shares to
support the working capital” was adopted at the 4th meeting of the 6th term of Board
held on August 23, 2011. According to the proposal, the Company used RMB30
million to support the need of working capital for not longer than six months and
would be returned to the special account for the capital raised on due.As of February
16, 2012, 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
                                              February 17, 2012