China Fangda Group Co., Ltd. Annual Report 2011 Summary
Stock Code: 000055, 200055 Stock ID: Fangda Group, Fangda B Announcement No. 2012-21
China Fangda Group Co., Ltd.
Annual Report 2011 Summary
§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.
This is the summary abstracted from the complete version of Annual Report, which is published synchronously on
the internet (http://www.cninfo.com.cn) for details please refer to the complete version.
1.3 Directors other than the followings presented the Board Meeting on which this report was examined:
Name of the director Reason for not presenting the
Position Name of consignee
absented meeting
Xiong Jianwei Director Business cause Wang Shengguo
1.3 Ascenda Certified Public Accountants audited the Financial Report 2011 and issued the standard Auditors’
Report without qualified opinion.
1.4 Mr. Xiong Jianming, the Chairman, and Mr. Lin Kebing, the Financial Officer, and Mr. Chen Yonggang, the
accounting manager, hereby declares that: The financial statements carried in this annual report are of authentic
and complete.
§2 Company Profile
2.1 Company Profile
Stock ID Fangda Group, Fangda B
Stock Code 000055、200055
Stock Exchange Shenzhen Stock Exchange
2.2 Liaison People
Secretary of the Board Representative of Stock Affairs
Name Zhou Zhigang Guo Linchen
Fangda Town, Xili Longjing, Nanshan District, Fangda Town, Xili Longjing, Nanshan District,
Address
Shenzhen, PRC Shenzhen, PRC
Tel. 86(755) 26788571 ext. 6622 86(755) 26788571 ext. 6622
Fax. 86(755)26788353 86(755)26788353
Email. zqb@fangda.com zqb@fangda.com
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China Fangda Group Co., Ltd. Annual Report 2011 Summary
§3 Financial Highlights
3.1 Major accounting data
In RMB Yuan
2011 2010 Increase/decrease (%) 2009
Turnover (yuan) 1,348,776,366.53 1,161,933,356.48 16.08% 912,979,118.31
Business profit (RMB) 70,899,738.39 49,637,958.64 42.83% 43,189,525.60
Gross profit (RMB) 79,160,090.12 67,655,340.40 17.00% 45,108,302.29
Net profit attributable
to shareholders of the 65,503,925.58 55,063,374.25 18.96% 44,052,511.46
listed company (yuan)
Net profit attributable
to the shareholders of
the listed company
51,005,479.89 25,603,881.05 99.21% 21,304,916.08
and after deducting of
non-recurring
gain/loss(RMB)
Net Cash flow
generated by business -57,045,495.85 -31,187,262.97 46,698,915.92
operation (RMB)
End of 2011 End of 2010 Increase/decrease (%) End of 2009
Total asset (RMB) 2,163,325,598.14 1,991,161,158.84 8.65% 1,482,814,012.11
Total liability (RMB) 1,011,268,487.56 896,832,951.52 12.76% 768,403,722.42
Owners’ equity
attributable to the
1,073,843,444.65 1,009,990,739.07 6.32% 623,295,593.57
shareholders of the
listed company (yuan)
Total capital share
756,909,905.00 504,606,604.00 50.00% 426,786,359.00
(shares)
3.2 Major financial indices
In RMB Yuan
Increase/decrease
2011 2010 2009
(%)
Basic earnings per share (Yuan/share) 0.09 0.08 12.50% 0.06
Diluted earnings per share (Yuan/share) 0.09 0.08 12.50% 0.06
Basic earnings per share less non-recurring gain/loss (Yuan/share) 0.07 0.04 75.00% 0.03
Net income on asset, weighted average % 6.28% 6.76% -0.48% 7.43%
Weighted average net income/asset ratio less non-recurring gain/loss (%) 4.89% 3.14% 1.75% 3.60%
Net Cash flow per share generated by business operation (yuan/share) -0.08 -0.06 0.11
End of End of Increase/decrease End of
2011 2010 (%) 2009
Net asset per share attributable to the shareholders of the listed company
1.42 2.00 -29.00% 1.46
(Yuan/share)
Ratio of liability on asset (%) 46.75% 45.04% 1.71% 51.82%
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China Fangda Group Co., Ltd. Annual Report 2011 Summary
3.3. Non-recurring profit/loss items
√ applicable □ not applicable
In RMB Yuan
Non-recurring gain and loss items Amount of 2011 Note (if applicable) Amount of 2010 Amount of 2009
Gain/loss of non-current assets -690,807.78 7,068,397.05 -770,498.33
Government subsidies accounted into current
gain/loss account, other than those closely
related to the Company’s common business, 1,988,650.00 5,537,950.00 5,359,369.24
comply with the national policy and continues
to enjoy at certain fixed rate or amount.
Gain/loss from debt reorganization 3,959.20 -434,040.66 -1,835,416.43
Enterprise reorganizing expenses, such as
0.00 -1,273,987.08 0.00
employee placement fee and integration fee
Gain/loss from change of fair value of
transactional asset and liabilities, and
investment gains from disposal of transactional
financial assets and liabilities and sellable 99,342.47 3,176,516.97 16,614,079.31
financial assets, other than valid period value
instruments related to the Company’s common
businesses
Gain/loss from change of fair value of
investment property measured at fair value in 10,815,131.20 13,921,217.90 6,322,964.35
follow-up measurement
Gain/loss from commissioned loans 0.00 0.00 308,534.09
Other non-business income and expenditures
6,080,071.96 5,845,075.37 -834,677.79
other than the above
Other gain/loss items satisfying the definition of
878,478.35 0.00 0.00
non-recurring gain/loss account
Influenced amount of minority shareholders’
-60,101.30 -93,798.81 -1,027,536.16
equity
Influenced amount of income tax -4,616,278.41 -4,287,837.54 -1,389,222.90
Total 14,498,445.69 - 29,459,493.20 22,747,595.38
§4 Shareholding Structure
4.1 Top 10 shareholders and top 10 holders of unconditional shares
in shares
Total of shareholders Total of shareholders at end of the month prior to issuing of
79,593 77,060
at end of 2011 this annual report
Top 10 Shareholders
Share
Name of the Properties of Conditional Pledged or
proportion Total shares
shareholder shareholder shares frozen
(%)
Shenzhen Banglin Domestic
Technologies non-state-owned legal 9.09% 68,774,273 0 0
Development Co., Ltd. person
Domestic
Shenzhen Shilihe
non-state-owned legal 2.36% 17,860,992 0 0
Investment Co., Ltd.
person
Wang Shaolin Domestic natural person 2.22% 16,800,000 0 16,800,000
Shengjiu Investment
Overseas legal person 1.64% 12,447,120 0 0
Ltd.
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China Fangda Group Co., Ltd. Annual Report 2011 Summary
Chen Binblin Domestic natural person 0.74% 5,598,300 0 0
Cao Yifan Domestic natural person 0.44% 3,320,865 0 0
Shi Baozhong Domestic natural person 0.36% 2,748,816 0 0
Chen Lihong Domestic natural person 0.30% 2,305,365 0 0
Zhen Fan Domestic natural person 0.26% 1,980,000 0 0
Domestic
Shenyang Shenfa
non-state-owned legal 0.24% 1,800,000 0 0
Investment Co., Ltd.
person
Top 10 holders of unconditional shares
Name of the shareholder Amount of shares without trade limited conditions Category of shares
Shenzhen Banglin Technologies Development
68,774,273 RMB common shares
Co., Ltd.
Shenzhen Shilihe Investment Co., Ltd. 17,860,992 RMB common shares
Wang Shaolin 16,800,000 RMB common shares
Foreign shares placed in
Shengjiu Investment Ltd. 12,447,120
domestic exchange
Chen Binblin 5,598,300 RMB common shares
Foreign shares placed in
Cao Yifan 3,320,865
domestic exchange
Shi Baozhong 2,748,816 RMB common shares
Foreign shares placed in
Chen Lihong 2,305,365
domestic exchange
Foreign shares placed in
Zhen Fan 1,980,000
domestic exchange
Shenyang Shenfa Investment Co., Ltd. 1,800,000 RMB common shares
Notes to relationship Among the top 10 shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu
or “action in concert”Investment Co., Ltd. are parties action-in-concert. Shenzhen Banglin Technology Development Co., Ltd. and
among the top ten Shenzhen Shilihe Investment Co., Ltd. are related parties. No other action-in-concert or related parties
shareholders. among the other holders of current shares.
4.2 Chart of share equity and controlling power between the Company and the holders
Xiong Jianming
85% 100%
Shenzhen Banglin Shengjiu Investment Ltd.
Technologies Development
Co., Ltd.9.09% 0.014%
1.64%
China Fangda Group Co., Ltd.
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China Fangda Group Co., Ltd. Annual Report 2011 Summary
§5 Report of the Board of Directors
5.1 Analysis of the Management
1. Business review of the report term
(1) General business situation
In year 2011, the economic environment is complicated both home and global. Continuing of debt crisis in Europe,
inflation in the country, property market control, and tightening monetary policies have been influencing the
economic growth of the whole country. The Company has overcome a number of difficulties, kept seizing the
positive opportunities, focusing on innovative development, reinforcing the main businesses, and achieved merit
performance.
In the report period, the Company’s main businesses kept growing. It achieved turnover of RMB1.34878 billion,
increased by 16.08% YOY, reached a new historic peak; net profit attributable to the owners of the Company of
RMB65.50 million, a 18.96% of growth, net profit after deducting of non-recurring gain/loss increased by 99.21%,
the profitability of main business was increasing. As of the end of report period, the Company has order
reservation amounted to RMB1.32376 billion, account for 98% of the turnover of this year, which will lay a
significant foundation for year 2012.
(2) Main business operations
Our business include new-type building materials, composite materials, metal wares, metal frames, environmental
equipment and apparatus, fire fighting equipment, optical-mechanical-electrical integrated products, polymer
materials and their products, fine chemical products, mechanical equipment, optical materials and devices,
electronic displayer, audio-visual device, transport facilities, metro platform screen doors, a variety of HAVC
equipment, water supply and drainage equipment, central air-conditioner and their parts and components,
semiconductors and their components. Integrated circuits, lighting products and equipment, solar-energy products
and their R&D. design, production. construction, sales and after-sales service ,property management, property
leasing and parking-lot service.
Products taking over 10% of the turnover or gross profit are curtain wall, compound aluminum board, single layer
aluminum board, and screen doors. In the report term, the Company has overcome the major influences brought
by financial crisis and macro adjustment of the country, none of them has made major impact on the Company’s
financial situation and business operation, so in the predictable future. The Company made no prediction or
commitment on the profitability of future.
1). Sustained rapid growth of curtain wall business
In the report period, facing the adverse economic environment, the company has continued to implement its
enterprise bigger and stronger strategy, enhance product core competence, give full play to its technology and
brand advantage, push forward energetically Pearl River Delta, Yangtze River Delta and Around Bohai large scale
high-end building curtain wall market exploitation to obtain an abundant contract reserves. In the report period
the company has successively signed a great number of large-scale energy-saving low-carbon high-end curtain
wall projects such as Rwanda International Airport Terminal (Angola), Shenzhen Baoan International Airport New
T3 Terminal, Shenzhen Zhongguang Nuclear Building, Changsha Kaifu Wanda Plaza, Beijing Peony Garden,
Hefei Xindi Centre, Chengdu Huazhi Square, Wuhan Central Culture District Office Building, Jingdezhen
Imperial Estate Square, Kunshan Shimao International Town, Tsingtao Haier Property Group Director Board
Building, Erdos International Trade Mart and Hebei Langfang Financial Street Banking Centre. The company has
achieved sales revenue 1, 184.7982 million yuan, up 17.4%. In 2011 the curtain production and material business
were still the main revenue and profit sources. The company will continue to seize the opportunity of the vigorous
domestic building curtain wall demand increasement and take its comprehensive advantage for promoting its
curtain production and material business.
The 26th World University Games was held in Shenzhen in 2011 and the company has contracted the curtain wall
project of Shenzhen Bay Sports Centre which was the opening ceremony gym of the games. The company has
constructed with its energy saving and environment protection curtain wall products according to the low-carbon
construction idea and the construction was indeed as difficult as the Beijing Bird’s Nest in Beijing. The company
has also contracted project of Universidad Stadium curtain wall and the company has constructed the building
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China Fangda Group Co., Ltd. Annual Report 2011 Summary
roof with its creation of new polycarbonate roof system which has been applied for 4 invention patents. The
company has been award Universidad Stadium Construction Outstanding Contribution Prize by Universidad
Engineering Construction and Logistic Guarantee Headquarters for the solution of polycarbonate temperature
deformation and system water resistant problems.
2) Railway Transportation Equipments Promoting Shenzhen Access Metro Age
The company PSD (platform screen door) product has possessed the first place in the aspects of market share,
brand influence, intellectual property and industry engineering service and especially has distinguished itself in
the Shenzhen local metro construction affairs. In June, 2011 the Shenzhen Metro 2nd-stage Construction was put
into operation and it is an honor that the metro-line 1 (Baishizhou---Airpot East), the whole metro-line 2 and the
metro-4 (Minle---Qinghu) have been equipped with the company PSD product. The company PSD product has
possessed merits of advanced performance, stable quality, reliable operation and aesthetic features and the
company comprehensive technology is in international advanced level. The company PSD products applied in the
Shenzhen Metro 2nd-stage Construction have steadily and efficiently run with non-accident from the beginning of
the whole line operation, which has indicated the advanced technology and perfect quality of the company product
and obtained great affirmation and praise from Shenzhen Subway Company and Shenzhen residents. The
company Shenzhen Metro Line 4 Project Department has been rated as Advanced Quality Control Unit.
In the report period, the company has made efforts to greatly improved company internal control, cost control,
team building and self-dependent innovation. The company has increased project margin rate and promoted the
product performance to be more stable and reliable by optimizing product design and strengthening field
management. After years of development, the company has possessed the core technology of PSD and obtained
197 relative patents including 45 invention patents, which is over half proportion of the total domestic patents in
this industry. Meanwhile the company has possessed 4 software copyrights. The company has positively pushed
forward intellectual property protection and won the social respect and support.
3) Sales Increasement of LED Production
In the report period, the company has made efforts to recover LED (semiconductor lighting) production ability
and market exploitation management. As a result the company has made an LED product sales increasement of
53.30% in 2011.
4) Promoting Production Base Arrangement and Construction
The company always pays great attention to self-dependent innovation and which has resulted in the brand
influence increasement, production competency and contract reserve. In order to solve the contradiction between
production capacity and order form in the report period, the company has promoted to finish the construction of
Dongguan Songshan Lake Production Base production expansion construction and set it in operation before the
third quarter end of 2012.
5) Continuous Company Internal Control Improvement
The company has been rated as one of 26 Major Listed Internal Control Construction Company according to
CSRC (China Securities Regulatory Commission) Shenzhen Securities Regulatory Bureau. In the report period,
the company has paid a great attention to the company internal control and invited external enquiry agency
besides establishing company internal control construction institution. The company has formulated and
performed its internal control system implementation plan. The company has comprehensively deliberated the
company management system, business process, organizational structure and work post setting to determine the
company business process flow diagram, process description and key control point together with the control
approach, meanwhile the company has set up the very internal control group to examine and verify the internal
control achievement documents. The company has formulated Company Internal Control System and Company
Internal Control Manuscript according to the implementation plan. The company has optimized its internal control
system through preliminary internal control audit.
6) In the report period, the company has had the honor to get the titles of 2010 Guangdong Province 500
Enterprise and Guangdong Province 100 Manufacturing Enterprise, 2011 Guangdong Province Model
Harmonious Labor Relation Enterprise, etc. The company Fangda brand has been ranked as Shenzhen Famous
Brand for 2 successive sessions.
Contracted by the wholly-owned subsidiary Shenzhen Fangda Decoration Engineering Co. Ltd, the curtain wall
project of Xiamen Five Margin Bay Operation Centre Office Building (Admiralty Centre) has been awarded
2010~2011 China Construction Luban Prize (National High Quality Project) which is the highest prize in the
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China Fangda Group Co., Ltd. Annual Report 2011 Summary
construction trades.
The wholly-owned subsidiary Shenzhen Fangda Automatic System Co. Ltd. has won, the only one enterprise of
the metro PSD industry, the title of 2010 China Railway Transportation Innovation 50 Enterprise. The subsidiary
PSD product has passed RAMS (reliability, applicability, maintainability and security) test and awarded RAMS
Certificate issued by Bureau Veritas to come to the first domestic enterprise that has passed the authentication. The
subsidiary has already passed through the ISO 90000 Quality Management System, ISO 14000 Environmental
Management System and GB/T28001 Occupational Health and Safety Management authentication in the past.
The wholly-owned subsidiary Fangda New Material Co. Ltd.(Jiangxi) has awarded Jiangxi Province Quality
Management Advanced Enterprise, 2010 Nanchang City HiTech Zone Advanced Enterprise. The project
Aluminum Profile Extrusion Die 4C Integration Technology and Appliance, which was cooperated with Nanchang
University, has awarded Jiangxi Province Science and Technology Progress Second Prize.
7) Positively Assuming Social Responsibilities
In the report period , the company has positively assumed social responsibilities by: paying taxes 74.74 million yuan, up 26.61%;
achieving export revenue 12.53 million dollars, up 44.69%; donating 233 thousand yuan and investing 0.8119 million yuan to create
nearly 5000 job opportunities; inputting 1.0886 million yuan in the field of employee knowledge and skill improvement. The
company has promoted development of new draft, technology, product structure and patent according to clean, safety and efficient
production to make contribution for environmental protection.
(3) Capital structure in the report term
At the end of report term, the Company has total assets of RMB2.16333 billion, including RMB664.33 million of
receivable account takes 30.71% of the total assets, increased by 10.79%; RMB254.42 million of inventory
account for 11.76% of total assets, investment property of RMB277.71 million account for 12.84%, fixed asset of
RMB316.78 million account for 14.64% of total asset, construction in process of RMB81.80 million account for
3.78% of total asset, and short-term borrowings of RMB397 million account for 17.89% of total asset. No
long-term borrowings.
In the report term, the Company uses fair value in accounting of investment properties, sellable financial assets,
and hedging contracts. Recognition of investment property fair value was on the “Property Evaluation Report” 深
同诚评字（2011A）01YQC 第 002 号 issued by Shenzhen Tongzhicheng Property Real Estate Consulting Co., Ltd.
Recognition of sellable financial assets was on closing quotation at the end of report term, and calculated
according to the “Formula of Fair Value of Shares with Definite Locking Period and Issued Privately”. Hedging
contracts are measured at settlement price at end of report term.
None of the sales expense, management expense, financial expense, and income tax has changed significantly.
(4) Composition of cash flow in the report term
Net increase of cash and cash equivalent of RMB-168.70 million. Including RMB-57.05 million occurred by
business operation, which was mainly expanding of curtain wall production, and increase of project progress and
slow retrieving of project payment. Net cash flow from investment of RMB-78.38 million, which was mainly
the investment project of energy saving PV curtain wall, PSD production expanding; net cash flow from financing
was RMB-33.3409 million, which was mainly repaying of bank loan and interest payment.
(5) The business status and performance analysis of the major subsidiaries of our company. & joint-stock
companies.
By December 31,2011, we wholly own 8 subsidiary enterprises, they are Shenzhen Fangda Decoration
Engineering Co., Ltd, Jiangxi Fangda New-type Aluminum Co., Ltd., Shenzhen Fangda Yide New Material Co.,
Ltd., Hong Kong Junjia Groups Co, Ltd., Dongguan Fangda New Materials Co., Ltd., Shenzhen Kexunda
Software Co., Ltd. and a holding subsidiary, that is Shenyang Fangda semiconductor lighting Co,. Ltd.
Shenzhen Fangda Decoration Engineering Co. Ltd is one of the largest manufacturers in curtain walls which is
specialized in the design, manufacture and installation of curtain walls and indoor & outdoor windows and doors,
also specialized in the design and manufacture of furniture.
Shenzhen Fangda Automation Systems Co., Ltd is the 1st in the country and 3rd in the world manufacturer
specialized in the development, manufacture and installation of platform screen doors.
Fangda New Materials (Jiangxi) Co,. Ltd and Shenzhen Fangda Yidexin new material Co., Ltd are specialized in
the manufacture and sales of aluminum sheet, clad aluminum and other new-type building materials, which is the
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China Fangda Group Co., Ltd. Annual Report 2011 Summary
largest in the country.
Shenyang Fangda semiconductor lighting Co,. Ltd is specialized in the R&D, manufacture and sales of
GAN-based integrated circuit and their parts and components which are the middle or finished products.
Dongguan Fangda New Materials Co., Ltd. is mainly engaged in designing, manufacturing, and installation of
multiple types of curtain walls, glass walls, doors and windows, fences, and interior roof; power supply and
air-conditioning system designing and installation. At present the company is under construction.
Shenzhen Kexunda Software Co., Ltd. is mainly involved in computer hardware and software developing, sales,
system integration, and technical consulting.
(6) Particulars about the special projects under the Company’s control
There is no such special projects.
2. Company Future Prospect and 2012 Annual Operation Plan
After years of sustained and high-speed development and continuous hardware capacity investment, the company
has had curtain wall production and material high-speed development foundation, strong financial strength, brand
influence, technical capacity and operation production management capacity. The company curtain wall product
has come to be the first choice of the customer and the Fangda aluminum plate has come to be comprehensively
technological advanced in the world. Facing the complicated economic situation in 2012, the company shall insist
its Bigger and Stronger Strategy and ensure the company main business curtain wall to contribute more for the
company revenue and profit. The company shall promote PSD production innovation and market especially the
oversea market exploitation to keep the advanced place in domestic industry in 2012. The company shall combine
LED with the advantage of curtain wall to promote curtain wall LED display system in 2012.
The company will accelerate Beijing, Chengdu and Shanghai production base construction in 2012 to finish the
national arrangement of taking Shenzhen as the headquarter, Dongguan Songshan Lake as the base of southern
China, Beijing as the base of North and Northeast of China, Chengdu as the base of South China, Shanghai as the
base of East China. The company will promote talent-team building, technology innovation, high-level academic
exchange, technological achievement share, intellectual property protection and China Famous Trademark
declaration. The company will optimize employee salary system, work post plan, financial system, audit system
and risk control system to decrease cost and expense. The company will optimize its operational cash flow,
strengthen enterprise culture construction, enhance the company and company product popularity and influence.
Plan of Fund Demand and Use
The company put raised funds 180 million yuan in its energy saving curtain wall and PV curtain wall production expansion project
and PSD production expansion project in 2012 and the company. The company will borrow from the bank and issue finance bills to
afford the 0.4 billion yuan company normal operation expense.
5.2 Principal business segments on industries/products
In RMB10 thousand
Segments on industries
Change of income
Operation Gross profit Change of cost Gross profit ration
On Industries Turnover over last year %
cost ratio (%) over last year % increased/decreased
Metal production 118,479.82 97,780.53 17.47% 23.90% 22.91% 0.67%
Railroad industry 9,823.06 7,336.12 25.32% -34.90% -43.32% 11.08%
Segments on products
Change of income
Operation Gross profit Change of cost Gross profit ration
On Products Turnover over last year %
cost ratio (%) over last year % increased/decreased
Curtain wall products
118,479.82 97,780.53 17.47% 23.90% 22.91% 0.67%
and materials
Rail transportation
9,823.06 7,336.12 25.32% -34.90% -43.32% 11.08%
equipment
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China Fangda Group Co., Ltd. Annual Report 2011 Summary
5.3 Statement on material change on profit composition, main business structure, and main business
profitability
□applicable √ not applicable
§6 Financial Report
6.1 Explanation on changes of accounting policies, accounting estimation, and accounting method
□applicable √ not applicable
6.2 Content, amount, reason and impact of major accounting errors
□applicable √ not applicable
6.3 Explanation on changes of consolidation range comparing with the previous annual report
√ applicable □ not applicable
Invested to found Shenzhen Kexunda Software Co., Ltd. and included in the consolidation scope.
6.4 Statement of the Board of Directors and Supervisory Committee on the “Non-standard Auditors’
Report”
□applicable √ not applicable
9
