China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Interim Report 2012
I. Important Statement
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.
Directors other than the followings presented the Board Meeting at which this report was examined:
Reason for not presenting the
Name of the director absented Position Name of consignee
meeting
Huang Yaying Independent Director Business engagement Guo Jinlong
Xiong Jianwei Director Business engagement Wang Shengguo
Auditors’ Opinions
Unaudited.
Mr. Xiong Jianming, the Chairman of Board, Mr. Lin Kebin, the Chief Financial Officer, and Mr. Chen Yonggang,
the manager of accounting department declare: the Financial Report carried in this report is authentic and
completed.
Glossary
Terms Defined as Description
The Company Defined as China Fangda Group Co., Ltd.
The Group Defined as The Company and its subsidiries
Fangda Decoration Defined as Shenzhen Fangda Decoration Engineering Co., Ltd.
Fangda Yide Co. Defined as Fangda Yide
Fangda Aluminium Defined as Jiangxi Fangda New Type Aluminum Co., Ltd.
Fangda Guoke Defined as Shenzhen Guangke Optical & Electronics Co., Ltd.
Fangda Automatic Defined as Shenzhen Fangda Automatic System Co., Ltd.
Fangda New Material Defined as Fangda New Materials (Jiangxi) Co., Ltd.
Shenzhen Woke Defined as Shenzhen Woke
Shenyang Fangda Defined as Shenyang Fangda Semi-conductor Lighting Co., Ltd.
Hong Kong Junjia Defined as Hong Kong Junjia Group Co., Ltd.
Banglin Co. Defined as Shenzhen Banglin Technologies Development Co., Ltd.
Shilihe Co. Defined as Shenzhen Shilihe Investment Co., Ltd.
Shengjiu Co. Defined as Shengjiu Investment Ltd.
Dongguan New Material Co., Ltd. Defined as Dongguan Fangda New Material Co., Ltd.
Kexunda Co. Defined as Shenzhen Kexunda Software Co., Ltd.
Chengdu New Material Co. Defined as Chengdu Fangda New Material Co., Ltd.
LED Defined as semiconductor light emitting diode
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
II. Company Profile
(I) Company profiles
Code of A-stock 000055 Code of B-stock 200055
ID of A-stock Fangda Group ID of B-stock Fangda B
Stock Exchange Shenzhen Stock Exchange
Legal company name 方大集团股份有限公司
Legal abbreviation Fangda Group
Legal company name in
CHINA FANGDA GROUP CO., LTD.
English
Legal aggreviation in English FANGDA
Legal representative Xiong Jianming
Reg. Add. Fangda Building, Kejinan 12th Avenue, High-tech Zone, Shenzhen, PR China.
Post Code 518057
Office address Technology Building, Fangda Town, Xili Longjing, Nanshan District, Shenzhen, PRC
Post Code: 518055
Website http://www.fangda.com
Email. fd@fangda.com
(II) Contacts and liaisons
Secretary of the Board Representative of Stock Affairs
Name Zhou Zhigang Guo Linchen
Fangda Town, Xili Longjing, Nanshan Fangda Town, Xili Longjing, Nanshan
Address
District, Shenzhen, PRC District, 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
(III) Information disclosure and inquiring
China Securities Times, Securities Journal, Shanghai Securities Daily, Hong Kong
Press medias of information disclosure
Commercial Daily
Website assigned by CSRC to release the
http://www.cninfo.com.cn
online reports
Place for information inquiry Secretarial Office of the Board
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
III. Financial Highlights
(I) Main accounting data and indices
If retrospective adjustment has been carried out on financial reports of previous periods
Yes No v.
Primary accounting data
Report term Same period last Increase/decrease over same
Primary accounting data
(Jan-Jun) year period of last year(%)
Turnover (yuan) 529,289,597.8 579,154,393.68 -8.61%
Business profit (RMB) 7,090,002.99 49,812,610.64 -85.77%
Gross profit (RMB) 9,824,692.28 54,684,537.33 -82.03%
Net profit attributable to shareholders of the listed
12,643,297.4 46,094,698.26 -72.57%
company (yuan)
Net profit attributable to the shareholders of the listed
company and after deducting of non-recurring 5,980,785.25 38,385,493.61 -84.42%
gain/loss(RMB)
Net Cash flow generated by business operation (RMB) -68,069,752.93 -12,160,290.48 459.77%
Ended this report Ended previous
Changed by (%)
term year
Gross Assets (RMB) 2,292,616,746.16 2,163,325,598.14 5.98%
Owners’ equity attributable to the shareholders of the
1,086,484,073.68 1,073,843,444.65 1.18%
listed company (yuan)
Capital shares (shares) 756,909,905 756,909,905 0
Major accounting indicies
Report term Same period Increase/decrease over same period
Major accounting indicies
(Jan-Jun) last year of last year(%)
Basic earnings per share (Yuan/share) 0.02 0.06 -66.67%
Diluted earnings per share (Yuan/share) 0.02 0.06 -66.67%
Basic earnings per share less non-recurring gain/loss
0.01 0.05 -80%
(Yuan/share)
Fully diluted net
income/asset ratio 1.16% 4.29% -3.13%
(%)
Weighted average net
1.17% 4.46% -3.29%
income/asset ratio (%)
Fully diluted net income/asset ratio less non-recurring
0.55% 3.57% -3.02%
gain/loss (%)
Weighted average net
0.55% 3.72% -3.17%
income/asset ratio less non-recurring gain/loss(%)
Net Cash flow per share generated by business operation
-0.09 -0.02
(yuan/share)
Ended this report Ended previous
Changed by (%)
term year
Net asset per share attributable to the shareholders of the
1.44 1.42 1.41%
listed company (Yuan/share)
Liability on asset ratio (%) 49.67% 46.75% 2.92%
Statement on the accounting data and financial indicies at end of report term. (Please state if retrospective adjustment was made.)
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(II) Differences in accounting data under domestic and international accounting standards
1. Differences in net profit and net asset under domestic and international accounting standards
[V] Applicable; [] Not applicable
In RMB Yuan
Net profit attributable to the shareholders of the Owners’ equity to shareholders of the listed
listed company company
Current term Previous term At end of term At beginning of term
On Chinese Accounting
12,643,297.4 46,094,698.26 1,086,484,073.68 1,073,843,444.65
Standard
Items and amounts adjusted according to international accounting standard
Capitalizing of borrowing
0 0 4,763,398.24 4,763,398.24
expenses
Under International
12,643,297.4 46,094,698.26 1,091,447,471.62 1,078,606,842.89
Accounting Standard
2. Differences in net profit and net asset under domestic and overseas accounting standards
[] Applicable; [V] Not applicable
3. Details of items with major differences
Rules of international
accounting standard or overseas
Items with major differences Amount (RMB) Cause of difference
accounting standard involved
with
The capitalized part of loan
expenses in years prior to
Capitalizing of borrowing International Accounting
4,763,398.24 adoption of Enterprise
expenses Standard 23 – Loan expenses
Accounting Standard on
January 1, 2007
4. Statement on accounting differences under domestic and overseas accounting standards
The different of owners’ equity attributable to the listed company on IAS was mainly the part of loan expenses
capitalized in years previous to application of the new accounting standard on January 1, 2007.
(III) Non-recurring items deducted and amounts
[V] Applicable [] Not applicable
Amount
Items Remarks
(Yuan)
Gain/loss of non-current assets -134,241.19
Tax refunding or exemption without official certification or exceeded authority
Gains and losses included in the current period of government subsidies, excluding those government grants
which are closely related to normal business and in line with national policy , or in accordance with fixed 703,700
standards or quantities
Capital adoption fee collected from non-financial organizations and accounted into current gain/loss 1,061,386.08
Gain/loss from differences between the cost of enterprise merger and the fair value of recognizable net asset
of the invested entities
Gain/loss from non-monetary assets
Gain/loss from commissioned investment or assets
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Asset impairment provisions provided for force-majeur
Gain/loss from debt reorganization
Enterprise reorganizing expenses, such as employee placement fee and integration fee
Gain/loss from trade departing from fair value
Current net gain/loss of subsidiaries under same control from beginning of term till date of consolidation
Gain/loss generated by contingent liabilities without connection with main businesses
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 financial assets, other than valid period value
instruments related to the Company’s common businesses
Restoring of receivable account impairment provision tested individually
Gain/loss from commissioned loans
Gain/loss from change of fair value of investment property measured at fair value in follow-up
5,936,670.15
measurement
Influence of one-time adjustment made on current gain/loss account according to the laws and regulations
regarding tax and accounting
Consigning fee received for cosigned operation
Other non-business income and expenditures other than the above 1,103,844.4
Other gain/loss items satisfying the definition of non-recurring gain/loss account
Influenced amount of minority shareholders’ equity -42,583.05
Influenced amount of income tax -1,966,264.24
Total 6,662,512.15 --
Statement of the Company on “Other gain/loss items satisfying the definitions of non-recurring gain/loss accounts” and the
non-recurring items defined as recurring items according to the nature and characteristics of the businesses.
Items Amount involved (RMB) Remarks
IV. Changes in Share Capital and Shareholders
(I) Movement of Capital Share
1. Statement of Changes in Shares
[] Applicable; [V] Not applicable
2. Change of Restricted Shares
[] Applicable; [V] Not applicable
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(II) Share issuing and listing
1. Share issuing in latest three years
[V] Applicable [] Not applicable
Name of the Date when
Price of issue Amount issued Approved amount
shares and Date of issue Date of listing trading is
(RMB/share) (shares) to be listed
derivate securities terminated
Shares
A-stock issued
June 4, 2010 7.3 47,945,200 July 15, 2010 47,945,200
privately
Convertible bonds, separable-traded convertible bonds, company bonds
Stock opitions
Statement of security issuing in latest three years (please state individually if different interest rates are applied to each bond)
In 2010, the Company issued privately 47.9452 million A shares to six particular investors at price of RMB7.30
each. Totally RMB349.99996 million was raised. The shares were listed on July 15, 2010. The Company hadn’t
issued shares in latest three years.
2. Change of asset and liability structure caused by change of total capital shares and structure
[] Applicable; [V] Not applicable
3. Current employees’ shares
[] Applicable; [V] Not applicable
(III) Shareholders and the substaintial controller of the Company
1. Total of shareholders at the end of report term.
Number of shareholding accounts at the end of report term was 73,317.
2. The Top Ten Shareholders
Top Ten Shareholders
Frozen or pledged
Properties of Share Total Conditional
Full name of shareholder Status of
shareholder proportion % shares shares Amount
shares
Shenzhen Banglin Technologies Public legal person
9.09% 68,774,273 0
Development Co., Ltd. shares
Liaoning Fangda Group Industry Co., Public legal person
4.06% 30,765,226 0
Ltd. shares
Shengjiu Investment Ltd. Foreign shares 2.82% 21,339,867 0
Public legal person
Shenzhen Shilihe Investment Co., Ltd. 2.36% 17,860,992 0
shares
Wang Shaolin Others 2.22% 16,800,000 0 Pledge 16,800,000
Cao Yifan Others 0.44% 3,337,465 0
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Chen Lihong Others 0.3% 2,305,365 0
Zhen Fan Others 0.27% 2,022,263 0
Chen Binblin Others 0.24% 1,814,773 0
China Merchants Securities Hong
State-owned shares 0.23% 1,754,465 0
Kong Ltd.
Situations of the shareholders
Top 10 holders of unconditional shares
[V] Applicable [] Not applicable
Amount of Categories and amounts of shares
unconditional shares
Name of the shareholder
holding at the end of Categories Amount
report term
Shenzhen Banglin Technologies Development
68,774,273 A shares 68,774,273
Co., Ltd.
Liaoning Fangda Group Industry Co., Ltd. 30,765,226 A shares 30,765,226
Shengjiu Investment Ltd. 21,339,867 B shares 21,339,867
Shenzhen Shilihe Investment Co., Ltd. 17,860,992 A shares 17,860,992
Wang Shaolin 16,800,000 A shares 16,800,000
Cao Yifan 3,337,465 B shares 3,337,465
Chen Lihong 2,305,365 B shares 2,305,365
Zhen Fan 2,022,263 B shares 2,022,263
Chen Binblin 1,814,773 A shares 1,814,773
China Merchants Securities Hong Kong Ltd. 1,754,465 B shares 1,754,465
Statement of relationships and (or) action-in-concert among above shareholders:
Among the top 10 shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu Investment
Co., Ltd. are parties action-in-concert. Shenzhen Banglin Technology Development Co., Ltd. and Shenzhen
Shilihe Investment Co., Ltd. are related parties. No other action-in-concert or related parties among the other
holders of current shares.
3. Profile of the controlling shareholder
(1) Changing of controlling shareholder and practical controller of the Company
[] Applicable; [V] Not applicable
(2) Particulars about the holding shareholder and substaintial controller
Is there any new substaintial controller
[] Yes [V] No
Name of the substaintial controller Xiong Jianming
Category of the controller Individual
Particulars
All of the investors of Shenzhen Banglin Technology Development Co., Ltd. – the holding shareholder of the
Company, are natural persons. Among them, Chairman Xiong Jianming is holding 85% of the shares, and Mr.
Xiong Xi – son of Mr. Xiong Jianming, is holding 15% of the shares. Mr. Xiong Jianming is the substaintial
controller of the Company who has been the chairman and president of the Company for latest five years.
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(3) Chart of controlling relationships
Xiong Jianming
85% 100%
Shenzhen Banglin Shengjiu Investment Ltd.
Technologies Development
Co., Ltd.9.09% 0.014%
1.64%
China Fangda Group Co., Ltd.
(4) Controlling over the Company by the substaintial controller through trust or other asset management
[] Applicable; [V] Not applicable
4. Other legal person shareholders with over 10% of total shares
[] Applicable; [V] Not applicable
(IV) Convertible bonds
[] Applicable; [V] Not applicable
V. Directors, Supervisors and Senior Executives
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(I) Change of shareholding by directors, supervisors, and executives
Take
Shares
Shares Shares Incl. Amount Share remuneration
holding at Shares held
increased decreased of shares options held Cause of from
Name Position Gender Age Job started Job ended the at the end of
this term this term under at the end of change shareholding
beginning of term
(shares) (shares) restriction term (shares) or related
term (shares)
parties
Xiong Chairman,
M 54 Mar 25, 2011 Mar 25, 2014 102,971 0 0 102,971 77,228 Unchanged No
Jianming President
Director,
Wang
Vice M 54 Mar 25, 2011 Mar 25, 2014 36,286 0 0 36,286 27,214 Unchanged No
Shengguo
President
Xiong
Director M 43 Mar 25, 2011 Mar 25, 2014 0 0 0 0 No
Jianwei
Director,
Zhou
Secretary of M 49 Mar 25, 2011 Mar 25, 2014 0 0 0 0 No
Zhigang
the Board
Shao Independent
F 73 Mar 25, 2011 Mar 25, 2014 0 0 0 0 No
Hanqing Director
Independent
Guo Jinlong M 50 Mar 25, 2011 Mar 25, 2014 0 0 0 0 No
Director
Huang Independent
M 49 Mar 25, 2011 Mar 25, 2014 0 0 0 0 No
Yaying Director
Zheng Hua Supervisor F 52 Mar 25, 2011 Mar 25, 2014 0 0 0 0 No
Yu Guoan Supervisor M 52 Mar 25, 2011 Mar 25, 2014 0 0 0 0 No
Cao Naisi Supervisor F 33 Mar 25, 2011 Mar 25, 2014 0 0 0 0 No
Yang Vice
M 58 Mar 25, 2011 Mar 25, 2014 0 0 0 0 No
Xiaozhuan President
CFO, Vice
Lin Kebin M 34 Mar 25, 2011 Mar 25, 2014 0 0 0 0 No
PRESIDENT
Vice
Wei Yuexing M 43 Jul 29, 2011 Mar 25, 2014 0 0 0 0 No
President
Total -- -- -- -- -- 139,257 139,257 104,442 -- --
Motivational bonus shares granted to the directors, supervisors, and managements in the report term:
[] Applicable; [V] Not applicable
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(II) Situation of jobs
Jobs taken in shareholding parties
[V] Applicable [] Not applicable
Job Take remunerations from
Names Name of the shareholder Job taken Job started
ended the shareholding party
Xiong Jianming Shengjiu Investment Ltd. Chairman Oct 6, 2011 No
Wang Shengguo Shenzhen Shilihe Investment Co., Ltd. Chairman, GM Oct 19, 2006 No
Xiong Jianwei Shenzhen Shilihe Investment Co., Ltd. Director Jun 12, 2001 No
Zhou Zhigang Shenzhen Shilihe Investment Co., Ltd. Director Oct 19, 2006 No
Zhen Hua Shenzhen Shilihe Investment Co., Ltd. Supervisor Oct 19, 2006 No
Particulars about
jobs taken
Jobs taken in other parties
[V] Applicable [] Not applicable
Take
Job Job
Names Name of the parties Positions remunerations
started ended
from the party
Guo Jinlong ShineWing Certified Public Accountants Partner Yes
Guo Jinlong Shenzhen Tuori New Energy Co., Ltd. Independent Director Yes
Guo Jinlong Rainbow Shopping Mall Co., Ltd. Independent Director Yes
Guo Jinlong Shenzhen Catic Fitness & Fashion Co., Ltd. Independent Director Yes
Guo Jinlong Shenzhen Hanyu Pharmacy Co., Ltd. Independent Director Yes
Shao Hanqing Shenzhen Catic Fitness & Fashion Co., Ltd. Independent Director Yes
Shao Hanqing Xingli (HK) Holdings Co., Ltd. Independent Director Yes
Huang Yaying Law School of Shenzhen University Dean Yes
Particulars about job
The above three are independent directors of the Company.
taken
(III) Annual Remunerations of the Directors, Supervisors and Senior Executives
Remuneration schemes for directors and supervisors are proposed by the Remuneration and
Decision making procedures for
Assessment Committee of the Board, and implemented upon approval of the Board and the
remunerations of the Directors,
Shareholders’ Meetings; the remuneration schemes for executives are approved and
Supervisors and Senior Executives
implemented by the Board.
Basis for remunerations of the Remuneration for directors and supervisors are decided by the shareholders’ meeting.
Directors, Supervisors and Senior Remunerations for executives are composed of wages and performance bonus as decided by
Executives the Board.
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Actual payment to directors,
Payment on monthly basis
supervisors and executives
(IV) Alternation of Directors, Supervisors, and Senior Executives
Name Jobs taken Changed Date of change Cause of change
Xiong Jianming Chairman, president No change
Wang Shengguo Director, Vice president No change
Xiong Jianwei Director No change
Zhou Zhigang Director, Secretary of the Board No change
Shao Hanqing Independent Director No change
Guo Jinlong Independent Director No change
Huang Yaying Independent Director No change
Zheng Hua Host of the Supervisory Committee No change
Yu Guoan Supervisor No change
Cao Naisi Supervisor No change
Yang Xiaozhuan Vice President No change
Lin Kebin Vice president and CFO No change
Wei Yuexing Vice President No change
(V) The Employees
Number of employees in position 3,118
Retired employees on the Company’s expense 0
Composition of professions
Categories of professions Number of persons
Production 2,116
Sales & Marketing 115
Technicians 469
Finance & Accounting 46
Executive 372
Education background
Categories of education Number of persons
High school or below 1,987
College diploma 680
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Bachelor 427
Master’s Degree 23
Doctorial degree 1
Particulars about the employees
VI. Board of Directors’ Report
(I) Business Analysis
I. Company operations
In the first half year the Euro Crisis continued, the whole world economic growth slowed down, the Chinese economy growth rate
dropped and the market demand decreased. In the report period, the company has taken many measurements to restrain the negative
influence brought in by the economic situation which was not so sound. And the company has achieved an revenue of 529.2896
million yuan to obtain a steady company operation. Up to now the company order backing counting up to 1.339 billion yuan which is
253.12% of the first half year operation revenue and thus to make a good foundation for the company whole year operation.
1.Persuing sustainable development of curtain wall system and materials with adverse economic conditions
Facing the adverse economic conditions, the company focus on such matters as the development of business, the increasement of
core competence, fully playing the brand advantage and keeping the principle of producing environment protectional and energy
saving high-end product. In the report period, the company the company has made a not bad achievement in market development to
gain a sufficient order backing that the company has continuously signed orders of energy saving and low carbon high-end curtain
wall projects for Tianjin Wanda Centre Hotel and office building, Changchun HaihangEra Centre, Wuxi Coast Town, Zhejiang
Shaoxing Jiayue Plaza, Zhejiang Cixi Industrial Product wholesale market phase II project, Chengdu 339 Project, and Chengdu
Yinshi Plaza, etc. The curtain wall projects, which was signed last year, of Angola International Airport, Shenzhen airport terminal
etc. were ruly performed and the company will get in a ordered construction climax in the next half year. Having sustainable rapidly
development and equipment investments for several years, the company has obtained the foundation for high speed development, the
strong financial strength, the considerable brand influence, the high engineering level and operation management ability for its rapid
development in the aspect of curtain wall and material that Fangda curtain wall system has become one of the most competitive
brands. Facing the complicated world economic conditions, the company is continuously taking many measurements to perform the
strategy of making itself bigger and stronger in curtain wall and material industry to ensure the very curtain wall system and material
to contribute more for the company.
In the report period, the complete subsidiary of the company, Fangda New Material Co. ltd. has been honored “2011 Nanchang
High-tech Zone Advanced Enterprise ”, “AAA Standardized Behavior Enterprise ”.
2.Strengthening internal management of metro equipment production and expanding oversea markets
In the report period, the company product metro platform screen door has won the bidding for Singapore Dashi Line Extension for its
advantages of “advanced performance, stable quality, reliable operation, perfect outlook and high safty ”. This line is the extension
of the main trunk east-west line of railway transport(from Singapore Zhangyi International Airport to its main industrial zone, Dashi )
and is one of the 3 busiest metro line. This comes to be the company’s another breakthrough after the Hong Kong and Taiwan metro
platform screen door projects to make itself the advantages for oversea market expanding.
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
The company joined this industry from 1999 and is one of the first enterprises of this industry. Now the company has come to take
the first place in the metro platform screen door product market for its market share, brand influence, intellectual property, industrial
standard and engineering service. In the report period, the company has great achievements in aspects of internal management, cost
control, team construction and self-dependent innovation. In the report period, the company’s ordered projects such as Singapore
Dashi Line Extension, Xian Metro Line 1 phrase I project, Wuhan Metro Line 2 platform screen door project and Dalian Metro
security gate project are being carried out.
3.Fangda Town renewal project performed according to the plan
In the report period, the company’s Fangda Town project lying in Shenzhen Nanshan Xili Longjing has been fitted into “2012
Shenzhen Urban Renewal Plan The First Projects” by Shenzhen Planning and Land Resources Committee and has been ratified by
Shenzhen City Government. For now the company is formatting the Fangda Town renewal plan and will put it in construction as
soon as it is ratified to improve the value of the company.
4.Industrial base construction basically taking shape
In the first half year, the company accelerated the construction of industrial bases in Dongguan, Beijing, Chengdu, Shanghai
according to the plan in order to form such a national overall arrangement that taking Shenzhen as the headquarter, Dongguan
Songshan Lake as the base in sorth of China, Beijing as the base in north and north-east of China, Chengdu as the base in south-west
of China and Shanghai as the base in east of China to guarantee to improve market share and overall competitiveness for making
more revenue. Now the Beijing and Chengdu bases have been put into use and the Dongguan Songshan Lake and Nanchang bases
are predicted to be basically completed and put into use in the 3rd quarter of this year.
5.Internal control construction improved continuously
The company has established internal control system by efforts for one and a half year that the work of rules performance has been
basically finished and the internal control work has been pushed into the consolidation stage. In order to strengthen the foundation
made by the previous efforts, in the report period the company has optimized the internal control organizational structure, rules and
regulations, operation system and information system to improve the company operation management and raise the risk protection
capability.
6.Vigorously pushing forward personnel training and reserves
Along with the industrial scale expansion and new manufacturing bases putting in use, the company needs a large number of
personnel for management, technology and manufacturing. So the company improve its talent introduction, selection, motivation and
training mechanisms. In 2012, the company has recruiting fresh graduates more than the previous years and 23% of them are
graduates of the universities within the national 211 project thus to make the company a sufficient talent reserves.
7. Technical innovation
In the report period, the company has pay 22.63 million yuan to push forward the research and development for new product,
new draft, new technology, new structure foucusing on cleaner production, safety production, energy efficient to make the company
product more low carbon environment-friendly and provide the company guarantee for sustainable development.
II. Financial position and changes of primary accounts (RMB)
Items Jan-Jun 2012 Jan-Jun 2011 Scale of
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
change %
Turnover 529,289,597.80 579,154,393.68 -8.61%
Operation profit 7,090,002.99 49,812,610.64 -85.77%
Asset impairment loss 17,877,520.45 -3,686,853.20 -
Non-operational income 3,154,994.50 5,461,800.64 -42.24%
Total profit 9,824,692.28 54,684,537.33 -82.03%
Net profit 1,917,235.24 44,120,100.19 -95.65%
Net profit attributable to the owners of 12,643,297.4 46,094,698.26 -72.57%
parent company
Items June 30, 2012 Dec 31 2011 Scale of
change %
Notes receivable 600,000.00 6,303,353.88 -90.48%
Construction in process 160,839,136.23 81,799,896.43 96.63%
Short-term loans 515,500,000.00 387,000,000.00 33.20%
Notes payable 67,030,164.23 39,058,058.47 71.62%
Employees’ wage payable 11,230,262.98 20,432,966.02 -45.04%
Primary causes of above changes
(1) Asset impairment loss has increased by RMB21.5644 million, that was caused by impairment provision
drawn upon the asset of Shenyang Fangda, which has been closed up.
(2) Non-business income has decreased by 42.24% YoY, that was caused by receiving of interest for Dalian
Yunshan project payment of RMB4,863,766.62 by Fangda Decoration in the same period of last year.
(3) The operational profit, total profit, and net profit attributable to the owners of the parent company have
decreased respectively by 85.77%, 82.03％ and 95.65％, that were caused by decreasing of income by 8.61% and
providing of impairment provisions on Shenyang Fangda.
(4) Notes receivable has decreased by 90.48%, that was caused by receiving of accounts with due notes or
endorsement of notes.
(5) Construction in process has increased by 96.63% over the openning balance, that was caused by
continous input to infrastructure construction of energy-saving and PV curtain wall and PSD production
expanding projects.
(6) Notes payable has increased by 71.62%, that was caused by increasing of payment by notes.
(7) Employees’ wage payable has decreased by 45.04%, which was caused by disbursing of bonus for 2011.
Whether the actual performance is exceeding or lower than the prediction or business plan released previously by
20% or over.
[] Yes [V] No
Business performance of main subsidiaries or affiliates:
Fangda Decoration is one of the Company’s subsidiaries mainly involves in designing, manufacturing and
installation of curtain wall products. It realized turnover of RMB425 million with a 10.39% of growth YoY.
Fangda New Material is one of the Company’s subsidiaries mainly involves in researching, developing, designing,
and manufacturing of new materials. It realized turnover of RMB92.07 million with a decrease of 28.26% YoY.
Fangda Automatic is one of the Company’s subsidiaries mainly involves in designing, technical developing,
processing, installation, and sales of railway station screen door system. It has realized turnover of RMB33.75
14
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
million with a 46.28% of decrease YoY.
All risky factors that could influence the realizing of development strategies and business targets:
1. Both domestic and global economies are under great pressure of declining, downhill of the market will bring
negative influence on the Company’s future development.
2. Along with the expanding of business scale, the conflict between the rapid growing demand in manpower and
the hardness of recruiting has become severe. Increasing of manpower costs will also make negative influence on
the Company’s development.
1. Main business and operation
(1) Statement of main businesse segments on industries and products
In RMB Yuan
Increase/decrease Increase/decrease
Increase/decrease
of operation cost of gross profit
On industry or Gross profit of turnover over
Turnover Operation cost over the same ratio over the
product ratio % the same period
period of last year same period of
of last year (%)
(%) last year (%)
On Industries
Metal production 471,976,293.23 379,891,380.74 19.51% -2.73% -2.34% -0.32%
Railroad industry 33,746,387.12 26,730,948.12 20.79% -46.88% -50.11% 5.13%
On Products
Curtain wall and
471,976,293.23 379,891,380.74 19.51% -2.73% -2.34% -0.32%
material
Rail
transportation 33,746,387.12 26,730,948.12 20.79% -46.88% -50.11% 5.13%
equipment
Statement of main businesse segments on industries and products
Statement of significant change of gross profit over the same period of previous year
(2) Business segments on territories
In RMB Yuan
Regions Turnover Change of turnover YoY (%)
Domestic 493,071,807.85 0.02%
Overseas 14,399,425.48 -77.23%
Statement of business segments on territories
15
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Overseas sales decreased by 77.23%, which was caused by decrease in export of curtain wall products.
Statement on main business composition.
(3) Major change in the primary business or its structure
[] Applicable; [V] Not applicable
(4) Statement on major change in primary business profitability (gross profit ratio)
[] Applicable; [V] Not applicable
(5) Analyze of major changes on profit composition comparing with the same period of last year
[V] Applicable [] Not applicable
Asset impairment loss has increased by RMB21.5644 million, that was caused by providing of
asset impairment losses on Shenyang Fangda which was closed up.
2. Internal controlling system related to accounting of fair value
[V] Applicable [] Not applicable
Fair values are adopted in accounting of investment properties and saleable financial assets. Fair value of investment property
is based on the appraisal reports issued by professional appraisal organizations. Saleable financial asset is mainly the 700 thousand
shares of ST MegCard which were released from restriction on Mar 3, 2010 and is accounted at the closing price at the end of report
period.
16
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Fair value – related items
In RMB Yuan
Gain/loss from Accumulative change Impairment
At beginning of
Items change of fair value in fair value accounted provisions provided At end of term
term
in the term into equities in the current term
Financial assets
Incld. 1. Financial assets
accounted at fair value and
2,198,000 603,500 2,072,000
changes accounted into current
gain/loss account
Incld: Derivate financial
assets
2. Sellable financial assets
Subtotal of financial assets 2,198,000 603,500 2,072,000
Financial liabilities
Investment real estates 277,705,949.35 5,936,670.15 274,741,613.47
Production physical assets
Others 276,813,613.47
Total 279,903,949.35 5,936,670.15 603,500
Is there any major difference between the evaluation results when evaluation techniques were adopted on similar items in two years
Please state the details if there is.
[] Yes [V] No
3. Holding of financial assets and liabilities in foreign currency
[V] Applicable [] Not applicable
In RMB Yuan
Gain/loss from Accumulative change in Impairment
At beginning of At end of
Items change of fair fair value accounted into provisions provided
term term
value in the term equities in the current term
Financial assets
Incld. 1. Financial assets
accounted at fair value and
changes accounted into current
gain/loss account
Incld: Derivate financial
assets
2. Loans and receivables 17,876,047.74 33,557.35 18,312,111.38
3. Sellable financial assets
4. Investment held to mature
Subtotal of financial assets 17,876,047.74 33,557.35 18,312,111.38
Financial liabilities
17
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(II) Company investment
1. Overall application of finance raised
[V] Applicable [] Not applicable
In RMB10 thousand
Total of proceeds 33,658.69
Total of proceeds invested in the report term 8,500.18
Total of proceeds invested 24,399.7
Total of proceeds changed to other use in the report
0
term
Accumulated proceeds changed to other use 0
% of accumulated proceeds changed to other use 0%
Statement on overall application of finance raised
18
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
2. Situations of projects to be financed by the proceeds
[V] Applicable [] Not applicable
In RMB10 thousand
If investment Investment
project Total of Total Accumulated Date when the
Amount progress at end
Project promised to be invested by changed proceeds to be investment investment at project become Gains in the Gains as Major change
invested this of report
the proceeds (including invested as after end of report useable as report term expected in feasibility
report term term(%)(3)＝
partially proposed adjustment term (2) proposed
(2)/(1)
change)
Project set by the prospectus
Energy-saving curtain wall and PV
curtain wall production expanding No 21,000 27,000 6,366.71 19,634.06 72.72% Sept. 30, 2012 0 No No
project
Expanding of PSD project No 12,658.69 6,658.69 2,133.47 4,765.64 71.57% Sept. 30, 2012 0 No No
Subtotal of investment promised - 33,658.69 33,658.69 8,500.18 24,399.7 - - 0- -
Investment project of premium
surplus
Repaying of bank loans (if any) - - - - -
Used as current capital (if any) - - - - -
Subtotal of premium proceeds - 0 0 0 0- - 0- -
Total - 33,658.69 33,658.69 8,500.18 24,399.7 - - 0- -
For the energy saving curtain wall and PV curtain wall projects were moved to Dongguan, it caused much preparation work, therefore it was delayed.
For the PSD production expanding project is located in Nanchang, as adopted by the 1st provisional shareholders’ meeting 2012 held on March 9, 2012, the project
Reason or situation that not on will use a current factory, which is located in Fangda Jiangxi New Material Garden, as production site, therefore the investment in construction of factory buildings
schedule (on specific project) and infrastructures is expected to be reduced by RMB60 million. The saved capital will be transferred to the energy saving and PV curtain wall projects.
Progress was delayed for change of the plan. Both of the projects are expected to be put into operation on September 30, 2012.
Statement on major change in
None
feasibility
Amount, usage and progress of [] Applicable; [V] Not applicable
premium surplus
[V] Applicable [] Not applicable
Change of location of project to [] Occurred in the report period [V] Occurred in previous years
invest According to the needs of business development, and approved by the 24th meeting of the 5th term of Board, the location of energy saving curtain wall and PV wall
project was changed from Nanchang to Dongguan Guangdong.
Adjustment on implementation of [] Applicable; [V] Not applicable
19
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
project invested [] Occurred in the report period [] Occurred in previous years
[V] Applicable [] Not applicable
Pre-investment and replacement by
On September 30, 2010, it was decided to use the raised capital of RMB4,347,753.09 to replace the investment made previously by Fangda Automatic
proceeds
RMB1,403,503.00 and Fangda Decoration RMB2,944,250.09. This has been verified by CPA with report 天健正信审（2010）专字第 020722 号.
[V] Applicable [] Not applicable
Idle proceed used as working
On March 28, 2011, payment of RMB20 million was made from idle proceeds to Fangda Decoration; and RMB10 million was made to Fangda Automatic. Both
capital
were not over six months.
[] Applicable; [V] Not applicable
Surplus of investment and causation
Application plan of retained fund
Energy-saving curtain wall and PV curtain wall production expanding project
from financing
The proposal of revising the amount of proceeds from financing was adopted at the 1st provisional shareholders’ meeting 2012 held on March 9, 2012. It was
Problem or situation in using of decided to transfer the RMB60 million of proceeds scheduled originally for PSD expanding project over to the energy-saving and PV curtain wall project. Upon
proceeds and disclosing this adjustment, the total investment on the energy-saving and PV curtain wall project is RMB270 million, and the investment on PSD expanding project is
RMB66.5869 million.
20
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
3. Altering of projects financed by proceeds
[] Applicable; [V] Not applicable
4. Major projects invested by non-financing capital
[] Applicable; [V] Not applicable
(III) Revising of business plan of the second half of year by the Board
[] Applicable; [V] Not applicable
(IV) Prediction of business performance for Jan-Sept 2012
Alert of loss or significant change in net profit from the beginning of year to the end of next report period or comparing with the
same period of last year, and statement of causations.
[V] Applicable [] Not applicable
Discription: significant delining at the same trend
Type of data filled for the prediction
[] Actual figures, [v] Interval figures
From the beginning of year to Same period
Changed by (%)
the end of next report period last year
Predicted number of
-- [] increase [v]
accumulative net profit 1,600 -- 2,600 5,305 51.99% -- 69.84%
decrease
(RMB0,000)
Basic earnings per share -- [] increase [v]
0.02 -- 0.03 0.07 57.14% -- 71.43%
(Yuan/share) decrease
Remarks on the prediction It is caused by providing of asset impairment of Shenyang Fangda, which was closed up.
(V) Statement of the Board on the “non-standard auditors’ report” issued by the CPA on the
current report period
[] Applicable; [V] Not applicable
(VI) Statement of the Board on the variation and treatment of events that involved in the
“non-standard auditors’ report” issued by the CPA on previous fiscal year
[] Applicable; [V] Not applicable
21
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(VII) Results of disccusion by the Board on the causation and impact of change in accounting
policies and estimations or correction of material accounting errors
[] Applicable; [V] Not applicable
(VIII) Making and implementation of cash dividend policies
According to the Notice about Implementing of Cash Dividend Plan issued by CSRC, with regarding of the
Company’s practice, the Company has revised some of the articles of the Articles of Association involve with
profit distribution. The Shareholders’ Rewarding Plan 2012-2014 was produced (the Rewarding Plan). The
revising proposal and the Rewarding Plan was examined and adopted at the 12th meeting of the 6th term of Board
as well as the 3rd provisional shareholders’ meeting 2012. The decision making procedures were complying with
the regulations.
The Company conducts profit distribution restrictly according to the Articles of Association. The current cash
dividend policies are complying with the Articles of Association and resolutions of the shareholders’ meeting. The
dividend standards and rates are clear and specific, a mature decision making program has been established, the
independent directors are performing their duties effectively, mid-small shareholders have been given sufficient
opportunities to express their opinions, and their legal benefits are protected.
The Company had a positive accumulative retained profit at end of 2011, whereas no cash dividend plan was
proposed. This was because the Company was in a rapid developing stage and a mass amount of investment was
needed to ensure sustainable growth. Through five years of hard work, the Company has achieved some 64% of
growth in total asset, 110% in turnover, and 168% in net profit attributable to the owners of the parent company
by 2011 over those of in 2007. It was an overturning of loss situation and significant increase year on year.
(IX) Profit distribution or capitalizing of common reserves
[] Applicable; [V] Not applicable
(X) Situation of positive retained profit at end of 2011 but no cash dividend was proposed
[V] Applicable [] Not applicable
Accumulative retained profit at end of 2011 211,777,968.57
Usage of the undistributed capital Business expanding in 2012
If produced gains [V] Yes [] No
Reason for diversity between actual and expected gains [] Not applicable
Othe remarks None
(XI) Establishing and performing of information insider administration scheme
The Company has revised the “Information Insider Registration Scheme” according to the requirement of
CSRC in February 2012. No situation was found in the report period that any of the insiders had been trading the
Company’s shares taking advantages of the material information they could get access to, neither informed by the
supervisory authorities regarding inspection or correction notice.
22
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Retrospective examination and tracking of insiders who have been trading the Company’s shares.
[] Yes [V] No
Were there any punishment or supervising treatment by the supervisory authorities on the Company or insiders involving with
undertable trade
[] Yes [V] No
(XII) Other issues to be disclosed
Independent opinions of the independent directors on capital adoption by related parties and providing of
external guarantees:
According to the document issued by CSRC and State-owned Asset Commission
(Zheng-Jian-Fa[2003]56), under the principle of practical and realistic, we performed cautious
inspection on the appropriation of capital by related parties and providing of external guarantee, we
deem:
1. The Company has established a healthy financial system to prevent adoption of capital by the holding
shareholder and its related parties and unfair related transactions. The Company hasn’t paid any wages, welfares,
insurances, or commercial expenses on behalf of the holding shareholder or its associated parties. The Company
conducted no operational capital transaction with any of the holding shareholder or its associated parties.
2. The Company has been controlling the external guarantees strictly. In the report term, the
Company hasn’t provided any guarantee to the holding shareholder or other related parties, any
no-incorporated parties or individuals. None of the holding shareholder or its related parties has
forced the Company to provide guarantee to any other parties. All of the guarantees were provided
to the Company’s subsidiaries following statutory examination procedures.
(XIII) Change in liability and credit situation, and cash arrangement for repaying of debts
(This form is only for PLCs which issued convertible bonds.)
[] Applicable; [V] Not applicable
VII. Significant Events
(I) Company administration
In the report term, according to the regulations and articles of Company Law, Securities Law, Share Listing
Rules of Shenzhen Stock Exchange, and Operational Instructions for PLCs on Main Board, the Company has been
improving its management structure, establishing modern enterprising system, standardizing business operations,
to keep the Company growing in a healthy way.
As of the end of report term, the practical situation is complying with the requirements of the laws of the
nation and instructional documents issued by CSRC.
23
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(II) Dividend plans, reserve capitalizing plans, or share issuing plans proposed in previous
period and implemented in the current period
[] Applicable; [V] Not applicable
(III) Material lawsuits
[] Applicable; [V] Not applicable
In the report period, the Company had no material lawsuits or arbitrations.
(IV) Bankrupcy or capital reorganizing
[] Applicable; [V] Not applicable
(V) Holding other PLC’s shares or participating of financial entities
1. Securities investment
[] Applicable; [V] Not applicable
Statement on securities investment
2. Holding of other PLC’s shares
[V] Applicable [] Not applicable
Change of
Original Share portion Book value at Gain/loss in owners’
Accounting Source of
Stock Code Stock ID investment in the end of period report period equity in the
subject shares
cost (RMB) investee % (RMB) (RMB) report period
(RMB)
Available-for
ST
-sale Debt paid in
600800 Magnetic 4,850,000 0.11% 2,072,000 0 -94,500
financial kind
Card
asset
Total 4,850,000 -- 2,072,000 0 -94,500 -- --
Statement on holding of other PLC’s shares.
3. Shareholding in non-listed financial entities
[] Applicable; [V] Not applicable
Statement on shareholding in non-listed financial entities
24
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
4. Trading of other PLC’s shares
[] Applicable; [V] Not applicable
Statement on trading of other PLC’s shares.
(VI) Asset trade
1. Acquisition of assets
[] Applicable; [V] Not applicable
Statement on acquisition of assets.
2. Disposal of assets
[] Applicable; [V] Not applicable
Statement on disposal of assets.
3. Asset exchange
[] Applicable; [V] Not applicable
Statement on asset exchange.
4. Merger of entities
[] Applicable; [V] Not applicable
5. Since releasing of capital reconstruction report or asset acquisition or disposal report, their progress and
influences on the business performance and financial positions.
[] Applicable; [V] Not applicable
(VII) Statement on share increasing proposal raised by the holding shareholder or its
action-in-concert parties in the report period
[V] Applicable; [] Not applicable
Shengjiu Investment Co., Ltd. is the action-in-concert party of the holding shareholder of the Company, which increased its
shareholding of the Company by 8,892,747 shares.
(VIII) Implementation and influences of share equity incentive program
[] Applicable; [V] Not applicable
25
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(IX) Material related transactions
1. Related transactions related to daily operation
[] Applicable; [V] Not applicable
2. Related transactions related to asset purchasing or disposal
[] Applicable; [V] Not applicable
3. Material related transactions related to collaborated external investment
[] Applicable; [V] Not applicable
4. Debtors and credits with related parties
[] Applicable; [V] Not applicable
Capital appropriation and progress of clearing in report period
[] Applicable; [V] Not applicable
The penalty plan proposed by the Board if the clearing of non-operational capital appropriation is not completed till the end of report
period.
[] Applicable; [V] Not applicable
5. Other material related transactions
(X) Major contracts and execution
1. Trusteeship, contract, or leasing issues which contributes 10% or over of total profit of the period
(1) Trusteeship
[] Applicable; [V] Not applicable
(2) Contracts
[] Applicable; [V] Not applicable
(3) Leasing
[] Applicable; [V] Not applicable
2. Guarantees
[V] Applicable [] Not applicable
26
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
In RMB10 thousand
External Guarantee (Exclude controlled subsidiaries)
Amount of Actual date of
Amount of Related
Guarantee guarantee and occurring Actual amount Type of Completed
the Term party or
provided to date of (signing date of of guarantee guarantee or not
guarantee not
disclosure agreements
Total of external guarantee Total of external guarantee
approved in the report term 0 actually occurred in the report 0
(A1) term (A2)
Total of external guarantee Total of external guarantee
approved as of end of report 0 actually occurred as of end of 0
term (A3) report term (A4)
Guarantee provided to controlled subsidiaries
Amount of Actual date of
Amount of Related
Guarantee guarantee and occurring Actual amount Type of Completed
the Term party or
provided to date of (signing date of of guarantee guarantee or not
guarantee not
disclosure agreements
since engage
Fangda of contract to
Mar 25, 2011 30,000 July 11 2011 29,789.47 Guaranteed No No
Decoration 2 years upon
due of debt
since engage
Fangda of contract to
Mar 10, 2012 12,000 May 24, 2012 7,920 Guaranteed No No
Decoration 2 years upon
due of debt
since engage
Fangda of contract to
May 11, 2012 15,000 Jun 21, 2012 1,117.8 Guaranteed No No
Decoration 2 years upon
due of debt
since engage
Fangda of contract to
Mar 25, 2011 25,000 July 11 2011 4,642.79 Guaranteed No No
Automatic 2 years upon
due of debt
since engage
Fangda of contract to
Mar 25, 2011 6,000 Dec 20, 2011 3,171.48 Guaranteed No No
Automatic 2 years upon
due of debt
since engage
Fangda of contract to
Aug 19, 2010 1,651.87 Sept 29 2010 1,651.87 Guaranteed No No
Automatic 2 years upon
due of debt
since engage
Fangda New of contract to
Mar 10, 2012 5,800 Jun 6 2012 4,206.62 Guaranteed No No
Material 2 years upon
due of debt
since engage
Fangda New of contract to
Mar 04, 2011 3,500 October 30 2011 3,500 Guaranteed No No
Material 2 years upon
due of debt
Total of guarantee to Total of guarantee to subsidiaries
subsidiaries approved in the 144,300 actually occurred in the report 30,033.61
report term (B1) term (B2)
Total of balance of guarantee
Total of guarantee to
actually provided to the
subsidiaries approved as of 144,300 56,000.04
subsidiaries as of end of report
the report term (B3)
term (B4)
Total of guarantee provided by the Company (i.e. total of the above two items)
Total of guarantee approved Total of guarantee occurred in
144,300 30,033.61
in the report term (A1+B1) the report term (A2+B2)
Total of guarantee approved
Total of guarantee occurred as of
as of end of report term 144,300 56,000.04
the end of report term
(A3+B3)
Percentage of the total guarantee occurred (A4+B4) on net
52.15%
asset of the Company
27
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
In which:
Guarantees provided to the shareholders, substantial
0
controllers and the related parties (C)
Guarantee provided directly or indirectly to objects with
0
over 70% of liability on asset ratio (D)
Amount of guarantee over 50% of the net asset (E) 2,307.87
Total of the above 3 * (C+D+E) 2,307.87
Statement on the possible joint liabilities on the guarantees
None
not due yet
Remarks on illegal providing of external guarantee None
3. Entrusted capital management
[] Applicable; [V] Not applicable
4. Performing of material contracts
(1) Angola International Airport project is progressing on schedule.
(2) Shenzhen Airport T3 Tower curtain wall project is proceeding as scheduled by the contract;
(3) Shenyang Xingmo’er Shopping Mall curtain wall project is proceeding as scheduled by the
contract;
(4) China ASEAN (Liuzhou) Industry Product Trade Center curtain wall project was on
schedule according to the contract;
(5) Shenzhen Zhongguanghe Building curtain wall project is proceeding according to the
contract;
(7) Dashi PSD project in Singapore is proceeding according to the contract;
(7) Xi’an Metro Line 1 PSD project is proceeding according to the contract;
(8) Wuhan Rail Line 2 phase I PSD system was on schedule according to the contract;
(9) Dalian Metro safe door system project was on schedule.
5. Other material contracts
[] Applicable; [V] Not applicable
(XI) Statement on issuing of company bonds
[] Applicable; [V] Not applicable
(VII) Fulfilling of comitments
1. Commitments of shareholders with over 5% of shares made in the report term or carried over from
previous terms
[] Applicable; [V] Not applicable
2. Statement on the situation of predicted profit on assets or projects, and actual results of the same
[] Applicable; [V] Not applicable
28
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(XIII) Other misc income accounts
In RMB Yuan
Items Current term Previous term
1. Amount of gain (loss) from sellable financial assets -126,000 -35,000
Less: Income tax influence of available-for-sale financial assets -31,500 -8,400
Net amount written into other gains and transferred into gain/loss in previous terms
Sub-total -94,500 -26,600
2. Share in other misc. income of the invested company on equity basis
Less: Income tax influence of shares in other gains of investees on equity basis
Net amount written into other gains and transferred into gain/loss in previous terms
Sub-total
3. Amount of gain (loss) from cash flow hedging instruments
Less: influence of income tax oon cash flow hedging instruments
Net amount written into other gains and transferred into gain/loss in previous terms
Adjusted amount transferred to initial amount of the target project
Sub-total
4. Difference in translating of foreign currency accounts
Less: Net amount of disposing overseas business and transferred to current gain/loss
Sub-total
5. Others 91,831.63
Less: Income tax influence by other accounted into other misc. incomes
Net amount accounted into other misc. income and transferred into current gain/loss in previous terms
Sub-total 91,831.63
Total -2,668.37 -26,600
(XIV) Reception of investigations, communications, or interviews in the report period
Main content involved
Time/date Place Way Type of visitors Visitors
and material provided
Telephone Business operation and
Jan 1 to Jun 30, 2012 Off site reception Individual Public investor
communication future development
(XV) Engaging and dismissing of CPA
If the Interim Report is audited
[] Yes [V] No
(XVI) Punishment on the Company and/or the directors, supervisors, executives, shareholders,
substaintial controller, and purchasers, and correcting of misbehaviours
[] Applicable; [V] Not applicable
(XVII) Other material events
[] Applicable; [V] Not applicable
(XVIII) Material change in profitability, asset, and credit situation of the guarantor of the
convertible bonds
(Only for PLCs issued convertible bonds)
29
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
[] Applicable; [V] Not applicable
(XIX) Index for information disclosure
Date of
Issues Names and pages of presses Web addresses
releasing
Securities Times B11, China Securities Journal
Announcement on Approving of Application for
B003, Shanghai Securities Daily 15, HKCD Jan 7, 2012 www.cninfo.com.cn
Issuing of Short Term Bonds
(English) A15
Securities Times B20, China Securities Journal
Announcement of Winning of Bidding
B006, Shanghai Securities Daily 25, HKCD Jan 3, 2012 www.cninfo.com.cn
Competition and Engaging of Contracts
(English) A4
Securities Times D17, China Securities Journal
Public Notice on Applying for the Municipal Feb 03,
B002, Shanghai Securities Daily B21, HKCD www.cninfo.com.cn
Reconstruction Plan 2012
(English) A10
Securities Times D16, China Securities Journal
Announcement on Returning of Capital Raised by Feb 17,
B007, Shanghai Securities Daily B7, HKCD www.cninfo.com.cn
Share Issuing 2012
(English) A10
Resolutions of the 7th Meeting of the 6th Term of
Board
Announcement to provide guarantee to
Securities Times C8, China Securities Journal
fully-owned subsidiaries Feb 21,
B020, Shanghai Securities Daily B19, HKCD www.cninfo.com.cn
Announcement to use the idle financing proceeds 2012
(English) A12
to support the working capital
st
Notice of Calling the 1 Provisional Shareholders’
Meeting 2012
Securities Times D12, China Securities Journal
Announcement of share increasing by current Mar 06
B007, Shanghai Securities Daily B32, HKCD www.cninfo.com.cn
shareholder 2012
(English) A23
st Securities Times B14, China Securities Journal
Resolutions of the 1 Provisional Shareholders’ Mar 10,
B007, Shanghai Securities Daily B28, HKCD www.cninfo.com.cn
Meeting 2012 2012
(English) A11
Resolutions of the 8th Meeting of the 6th Term of
Board
Proposal of Private Issuing of A Stocks in 2012
Securities Times D4, China Securities Journal
The public notice about subscribing of shares Mar 21
A20, Shanghai Securities Daily B30, HKCD www.cninfo.com.cn
privately by the largest shareholder that is a 2012
(English) A23
related transaction
nd
Notice for Calling of the 2 Provisional
Shareholders’ Meeting 2012
Securities Times C21, China Securities Journal
Notice for Calling of the 2nd Provisional Mar 26,
A26, Shanghai Securities Daily B30, HKCD www.cninfo.com.cn
Shareholders’ Meeting 2012 2012
(English) A31
nd Securities Times D68, China Securities Journal
The Resolutions of the 2 Shareholders’
B032, Shanghai Securities Daily B42, HKCD Apr 6, 2012 www.cninfo.com.cn
Provisional Meeting 2012
(English) A7
Securities Times D33, China Securities Journal
Announcement on the Progress of Application for Apr 11,
A27, Shanghai Securities Daily B1, HKCD www.cninfo.com.cn
the Urban Reconstruction Program 2012
(English) A18
Resolutions of the 9th Meeting of the 6th Term of
Board
Resolutions of the 5th Meeting of the 6th Term of
Securities Times D20, China Securities Journal
Supervisory Committee Apr 20,
B081, Shanghai Securities Daily B70, HKCD www.cninfo.com.cn
Notice of Calling the Shareholders’ Annual 2012
(English) A22
Meeting 2011
Annual Report 2011 Summary
The 1st Quarterly Report 2012
Securities Times D12, China Securities Journal
Announcement of Winning of Bidding Apr 24,
B011, Shanghai Securities Daily B235, HKCD www.cninfo.com.cn
Competition and Engaging of Contracts 2012
(English) A10
The Resolutions of Shareholders’ Annual Meeting Securities Times D36, China Securities Journal May 11,
www.cninfo.com.cn
2011 B020, Shanghai Securities Daily B32 2012
Resolutions of the 10th Meeting of the 6th Term of Securities Times D24, China Securities Journal Jun 19,
www.cninfo.com.cn
Board B009, Shanghai Securities Daily B5, HKCD 2012
30
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Announcement of Performance Decline (English) A16
Resolutions of the 11th Meeting of the 6th Term of
Securities Times B21, China Securities Journal
Board Jun 30,
B025, Shanghai Securities Daily 44, HKCD www.cninfo.com.cn
Announcement on Providing Guarantee to 2012
(English) A27
Fully-owned Subsidiaries
VIII. Financial Reports
(I) Auditors’ Report
If the Interim Report is audited
[] Yes [V] No
(II) Financial Statements
Consolidated or not
[V] Yes [] No
All figures in the financial statements are in RMB Yuan except for otherwise stated.
All figures in the Notes to the Financial Statements are in RMB Yuan
1. Consolidated Balance Sheet
Prepared by China Fangda Group Co., Ltd.
In RMB
Items Note Ending balance Beginning balance
Current asset:
Monetary capital 332,471,292.44 324,780,350.77
Settlement provision
Outgoing call loan
Transactional financial assets 0 0
Notes receivable 600,000 6,303,353.88
Account receivable 719,969,187.64 664,333,498.11
Prepayment 25,967,125.4 25,444,369.81
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable 156,849.92 201,961.11
Dividend receivable
Other account receivable 67,353,960.25 53,412,523.94
Repurchasing of financial assets
Inventories 249,906,875.11 254,419,907.08
Non-current asset due in 1 year
Other current asset 0 0
Total of current asset 1,396,425,290.76 1,328,895,964.7
Non-current assets
Disburse of consigned loans
Available-for-sale financial asset 2,072,000 2,198,000
Expired investment in possess
Long-term receivable
Long-term share equity investment
Investment real estates 274,741,613.47 277,705,949.35
Fixed assets 306,233,660.54 316,775,398.58
Construction in process 160,839,136.23 81,799,896.43
31
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Engineering goods
Fixed asset disposal 24,597.9
Production physical assets
Gas & petrol
Intangible assets 108,032,516.19 110,599,955.27
R&D expense 911,533.63 914,683.63
Goodwill 8,197,817.29 8,197,817.29
Long-term amortizable expenses 2,410,929.95 2,600,195.3
Differed income tax asset 32,727,650.2 33,637,737.59
Other non-current asset
Total of non-current assets 896,191,455.4 834,429,633.44
Total of assets 2,292,616,746.16 2,163,325,598.14
Current liabilities
Short-term loans 515,500,000 387,000,000
Loan from Central Bank
Deposit received and hold for others
Call loan received
Trade off financial liabilities
Notes payable 67,030,164.23 39,058,058.47
Account payable 323,220,777.67 324,340,008.15
Prepayment received 115,360,697.22 124,950,664.78
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 11,230,262.98 20,432,966.02
Tax payable 29,150,341.5 41,002,265.87
Interest payable 699,982 780,979.73
Dividend payable
Other account payable 37,867,880.14 36,783,207.38
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 1,100,060,105.74 974,348,150.4
Non-current liabilities
Long-term borrowings
Bond payable
Long-term payable 11,200 14,700
Special payable
Anticipated liabilities 93,130.9 288,000
Differed income tax liability 34,565,632.07 32,597,637.16
Other non-recurring liabilities 3,915,000 4,020,000
Total of non-current liabilities 38,584,962.97 36,920,337.16
Total of liability 1,138,645,068.71 1,011,268,487.56
Owners’ equity (or shareholders’ equity)
Capital paid in (or share capital) 756,909,905 756,909,905
Capital reserves 80,476,825.55 80,479,493.92
Less: Shares in stock
Special reserves
Surplus reserves 24,676,077.16 24,676,077.16
Common risk provision
Retained profit 224,421,265.97 211,777,968.57
Different of foreign currency translation
Total of owner’s equity belong to the parent company 1,086,484,073.68 1,073,843,444.65
Minor shareholders’ equity 67,487,603.77 78,213,665.93
Total of owners’ equity (or shareholders’ equity) 1,153,971,677.45 1,152,057,110.58
Total of liability and shareholders’ equity (or owners’ equity) 2,292,616,746.16 2,163,325,598.14
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Chen Yonggang
32
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
2. Balance Sheet of the Parent Company
In RMB
Items Note Ending balance Beginning balance
Current asset:
Monetary capital 18,544,963.54 24,587,261.8
Transactional financial assets
Notes receivable
Account receivable 5,519,788.05 5,603,561.8
Prepayment 4,405 122,369
Interest receivable
Dividend receivable 57,338,200 57,338,200
Other account receivable 240,766,931.37 265,169,612.63
Inventories
Non-current asset due in 1 year
Other current asset
Total of current asset 322,174,287.96 352,821,005.23
Non-current assets
Available-for-sale financial asset 2,072,000 2,198,000
Expired investment in possess
Long-term receivable
Long-term share equity investment 659,733,745.58 659,733,745.58
Investment real estates 268,550,870.47 271,841,967.35
Fixed assets 67,207,314.6 57,299,884.44
Construction in process 929,884.24 298,019.24
Engineering goods
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 9,649,835.57 9,910,673.85
R&D expense
Goodwill
Long-term amortizable expenses
Differed income tax asset 13,816,226.33 14,415,297.03
Other non-current asset
Total of non-current assets 1,021,959,876.79 1,015,697,587.49
Total of assets 1,344,134,164.75 1,368,518,592.72
Current liabilities
Short-term loans 210,000,000 210,000,000
Trade off financial liabilities
Notes payable
Account payable 1,851,490.36 1,851,490.36
Prepayment received 693,045.6 693,045.6
Employees’ wage payable 566,563.17 1,251,357.38
Tax payable 664,839.44 655,031.17
Interest payable 401,800 441,980
Dividend payable 655,031.17
Other account payable 34,131,547.35 66,697,963.87
Non-current liability due in 1 year
Other current liability 66,697,963.87
Total of current liability 248,309,285.92 281,590,868.38
Non-current liabilities
Long-term borrowings
Bond payable
Long-term payable
Special payable
Anticipated liabilities
Differed income tax liability 34,105,345.16 32,186,364.4
Other non-recurring liabilities
Total of non-current liabilities 34,105,345.16 32,186,364.4
Total of liability 282,414,631.08 313,777,232.78
Owners’ equity (or shareholders’ equity)
33
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Capital paid in (or share capital) 756,909,905 756,909,905
Capital reserves 41,076,170.17 41,078,838.54
Less: Shares in stock
Special reserves
Surplus reserves 24,676,077.16 24,676,077.16
Retained profit 239,057,381.34 232,076,539.24
Different of foreign currency translation
Total of owners’ equity (or shareholders’ equity) 1,061,719,533.67 1,054,741,359.94
Total of liability and shareholders’ equity (or owners’ equity) 1,344,134,164.75 1,368,518,592.72
3. Consolidated Income Statement
In RMB
Amount of the Current Amount of the Previous
Items Note
Term Term
I. Total revenue 529,289,597.8 579,154,393.68
Incl. Business income 529,289,597.8 579,154,393.68
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 528,136,264.96 534,439,453.17
Incl. Business cost 418,086,030.44 460,275,267.38
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 9,750,997.72 8,780,225.31
Sales expense 15,164,029.76 14,037,722.42
Administrative expense 55,896,227.34 46,225,304.98
Financial expenses 11,361,459.25 8,807,786.28
Asset impairment loss 17,877,520.45 -3,686,853.2
Plus: gains from change of fair value (“-“ for loss) 5,936,670.15 5,082,327.66
Investment gains (“-“ for loss) 0 15,342.47
Incl. Investment gains from affiliates
Exchange gains (“-“ for loss)
III. Operational profit (“-“ for loss) 7,090,002.99 49,812,610.64
Plus: non-operational income 3,154,994.5 5,461,800.64
Less: non-operational expenditure 420,305.21 589,873.95
Incl. Loss from disposal of non-current assets 134,421.19 247,866.36
IV. Gross profit (“-“ for loss) 9,824,692.28 54,684,537.33
Less: Income tax expenses 7,907,457.04 10,564,437.14
V. Net profit (“-“ for net loss) 1,917,235.24 44,120,100.19
Including: Net profit realized by the entity taken over before the
0 0
takover
Net profit attributable to the owners of parent company 12,643,297.4 46,094,698.26
Minor shareholders’ equity -10,726,062.16 -1,974,598.07
VI. Earnings per share: -- --
(I) Basic earnings per share 0.02 0.06
(II) Diluted earnings per share 0.02 0.06
VII. Other misc. incomes -2,668.37 -26,600
VIII. Total of misc. incomes 1,914,566.87 44,093,500.19
Total of misc. incomes attributable to the owners of the parent
12,640,629.03 46,068,098.26
company
Total misc gains attributable to the minor shareholders -10,726,062.16 -1,974,598.07
Net profit contributed by entities merged under common control in the report period was RMB0.
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Chen Yonggang
34
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
4. Income Statement of the Parent Co.
RMB
Items Note Amount of the Current Term Amount of the Previous Term
I. Turnover 22,293,459.72 20,049,926.08
Less: Operation cost 4,730,478.42 5,151,318.51
Business tax and surcharge 1,801,110.33 1,197,342.53
Sales expense -15,831.98 251,166.98
Administrative expense 9,113,577.56 9,792,692.82
Financial expenses 3,474,277.89 1,922,691.95
Asset impairment loss 122,857.23 -802,130.54
Plus: gains from change of fair value (“-“ for loss) 5,609,909.15 4,547,127.66
Investment gains (“-“ for loss) 0 0
Incl. Investment gains from affiliates
II. Operational profit (“-“ for loss) 8,676,899.42 7,083,971.49
Plus: Non business income 910,170.78 461,369.27
Less: Non-business expenses 56,676.64 430,763.39
Incl. Loss from disposal of non-current assets
III. Total profit (“-“ for loss) 9,530,393.56 7,114,577.37
Less: Income tax expenses 2,549,551.46 1,639,557.29
IV. Net profit (“-“ for net loss) 6,980,842.1 5,475,020.08
V. Earnings per share -- --
(I) Basic earnings per share
(II) Diluted earnings per share
VI. Other misc gains -2,668.37 -26,600
VII. Total of integrated income 6,978,173.73 5,448,420.08
5. Consolidated Cash Flow Statement
In RMB
Amount of the Current Amount of the Previous
Items
Term Term
I. Net cash flow from business operation
Cash received from sales of products and providing of services 488,949,208.73 572,717,719.7
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 1,171,203.29 2,196,998.64
Other cash received from business operation 31,104,199.38 34,846,329.66
Sub-total of cash inflow from business activities 521,224,611.4 609,761,048
Cash paid for purchasing of merchandise and services 415,468,117.93 483,715,194.88
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 59,680,101.99 44,761,059.84
Taxes paid 43,842,326.44 30,109,619.02
Other cash paid for business activities 70,303,817.97 63,335,464.74
Sub-total of cash outflow from business activities 589,294,364.33 621,921,338.48
Cash flow generated by business operation, net -68,069,752.93 -12,160,290.48
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment profit 15,342.47
35
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Net cash retrieved from disposal of fixed assets, intangible assets, and
1,098,900 9,372
other long-term assets
Net cash received from disposal of subsidiaries or other operational units
Other investment-related cash received 2,180,644.64
Sub-total of cash inflow due to investment activities 3,279,544.64 24,714.47
Cash paid for construction of fixed assets, intangible assets and other
47,681,003.19 16,693,359.7
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 887,100
Sub-total of cash outflow due to investment activities 48,568,103.19 16,693,359.7
Net cash flow generated by investment -45,288,558.55 -16,668,645.23
III. Cash flow generated by financing
Cash received as investment
Incl. Cash received as investment from minor shareholders
Cash received as loans 359,500,000 90,000,000
Cash received from bond placing
Other financing-related cash received
Subtotal of cash inflow from financing activities 359,500,000 90,000,000
Cash to repay debts 231,000,000 104,000,000
Cash paid as dividend, profit, or interests 14,395,048.68 10,220,855.72
Incl. Dividend and profit paid by subsidiaries to minor shareholders
Other cash paid for financing activities 15,150,000 111,983.72
Subtotal of cash outflow due to financing activities 260,545,048.68 114,332,839.44
Net cash flow generated by financing 98,954,951.32 -24,332,839.44
IV. Influence of exchange rate alternation on cash and cash equivalents 7,703.27 -7,826.45
V. Net increase of cash and cash equivalents -14,395,656.89 -53,169,601.6
Plus: Balance of cash and cash equivalents at the beginning of term 300,177,008.78 468,878,715.15
VI. Balance of cash and cash equivalents at the end of term 285,781,351.89 415,709,113.55
6. Cash Flow Statement of the Parent Co.
In RMB
Amount of the Current Amount of the Previous
Items
Term Term
I. Net cash flow from business operation
Cash received from sales of products and providing of services 17,684,620.78 20,736,668.55
Tax returned
Other cash received from business operation 4,122,888.12 1,088,056.36
Sub-total of cash inflow from business activities 21,807,508.9 21,824,724.91
Cash paid for purchasing of merchandise and services 5,635,577.54 5,182,338.56
Cash paid to staffs or paid for staffs 4,570,911.79 4,010,180.73
Taxes paid 2,169,865.52 1,967,285.81
Other cash paid for business activities 5,075,694.39 5,435,520.75
Sub-total of cash outflow from business activities 17,452,049.24 16,595,325.85
Cash flow generated by business operation, net 4,355,459.66 5,229,399.06
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment profit
Net cash retrieved from disposal of fixed assets, intangible assets, and
900 8,040
other long-term assets
Net cash received from disposal of subsidiaries or other operational units 0
Other investment-related cash received 0
Sub-total of cash inflow due to investment activities 900 17,008,040
Cash paid for construction of fixed assets, intangible assets and other
3,037,035 429,778
long-term assets
Cash paid as investment
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities
Sub-total of cash outflow due to investment activities 3,037,035 429,778
Net cash flow generated by investment -3,036,135 16,578,262
36
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
III. Cash flow generated by financing
Cash received as investment
Cash received as loans
Other financing-related cash received
Subtotal of cash inflow from financing activities 0 0
Cash to repay debts 12,847,054.29
Cash paid as dividend, profit, or interests 7,352,940 5,100,550
Other cash paid for financing activities 111,983.72
Subtotal of cash outflow due to financing activities 7,352,940 18,059,588.01
Net cash flow generated by financing -7,352,940 -18,059,588.01
IV. Influence of exchange rate alternation on cash and cash equivalents
V. Net increase of cash and cash equivalents -6,033,615.34 3,748,073.05
Plus: Balance of cash and cash equivalents at the beginning of term 24,337,261.8 30,252,759.44
VI. Balance of cash and cash equivalents at the end of term 18,303,646.46 34,000,832.49
7. Statement of Change in Owners’ Equity (Consolidated)
37
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Amount of the Current Term
In RMB
Amount of the Current Term
Owners’ Equity Attributable to the Parent Company
Less: Minor
Items Capital paid Common Total of owners’
Capital Shares Special Surplus shareholders’
in (or share risk Retained profit Others equity
reserves in reserves reserves equity
capital) provision
stock
I. Balance at
the end of 756,909,905 80,479,493.92 24,676,077.16 211,777,968.57 78,213,665.93 1,152,057,110.58
last year
Plus:
Change of
accounting
policy
Correcting of
previous
errors
Others
II. Balance at
the
756,909,905 80,479,493.92 24,676,077.16 211,777,968.57 78,213,665.93 1,152,057,110.58
beginning of
current year
III. Amount
of change in
current term -2,668.37 12,643,297.4 -10,726,062.16 1,914,566.87
(“-“ for
decrease)
(I) Net profit 12,643,297.4 -10,726,062.16 1,917,235.24
(II) Other
-2,668.37 -2,668.37
misc. income
Total of (I)
-2,668.37 12,643,297.4 -10,726,062.16 1,914,566.87
and (II)
(III)
Investment
or decreasing
of capital by
owners
1. Capital
inputted by
owners
2. Amount of
shares paid
and
accounted as
owners’
equity
3. Others
(IV) Profit
allotment
1. Providing
of surplus
reserves
2. Common
risk
provision
3. Allotment
to the owners
(or
shareholders)
4. Others
(V) Internal
38
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
transferring
of owners’
equity
1.
Capitalizing
of capital
reserves (or
to capital
shares)
2.
Capitalizing
of surplus
reserves (or
to capital
shares)
3. Making up
losses by
surplus
reserves
4. Others
(VI)
Special
reserves
1. Provided
this year
2. Used this
term
(VII) Others
IV. Balance
at the end of 756,909,905 80,476,825.55 24,676,077.16 224,421,265.97 67,487,603.77 1,153,971,677.45
this term
Amount of Last Year
In RMB
Amount of Last Year
Owners’ Equity Attributable to the Parent Company
Capital Minor
Commo Total of
Items paid in Less: sharehold
Capital Special Surplus n risk Retaine owners’
(or Shares Others ers’
reserves reserves reserves provisio d profit equity
share in stock equity
n
capital)
I. Balance at the end of last 504,606 334,434, 17,834, 153,115, 84,337,46 1,094,328,
year ,604 014.92 977.97 142.18 8.25 207.32
Plus: Retrospective
adjustment caused by merger of
entities under common control
Plus: Change of
accounting policy
Correcting of
previous errors
Others
II. Balance at the beginning of 504,606 334,434, 17,834, 153,115, 84,337,46 1,094,328,
current year ,604 014.92 977.97 142.18 8.25 207.32
III. Amount of change in 252,303 -252,32 46,094,6 -1,974,59 44,093,500
current term (“-“ for decrease) ,301 9,901 98.26 8.07 .19
46,094,6 -1,974,59 44,120,100
(I) Net profit
98.26 8.07 .19
(II) Other misc. income -26,600 -26,600
46,094,6 -1,974,59 44,093,500
Total of (I) and (II) -26,600
98.26 8.07 .19
(III) Investment or decreasing
0 0 0 0 0 0 0 0 0 0
of capital by owners
1. Capital inputted by owners
2. Amount of shares paid and
accounted as owners’ equity
39
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
3. Others
(IV) Profit allotment 0 0 0 0 0 0 0 0 0 0
1. Providing of surplus reserves
2. Common risk provision
3. Allotment to the owners (or
shareholders)
4. Others
(V) Internal transferring of 252,303 -252,30
0 0 0 0 0 0 0 0
owners’ equity ,301 3,301
1. Capitalizing of capital 252,303 -252,30
reserves (or to capital shares) ,301 3,301
2. Capitalizing of surplus
reserves (or to capital shares)
3. Making up losses by surplus
reserves
4. Others
(VI) Special reserves
1. Provided this year
2. Used this term
(VII) Others
IV. Balance at the end of this 756,909 80,479,4 24,676, 211,777, 78,213,66 1,152,057,
term ,905 93.92 077.16 968.57 5.93 110.58
8. Statement of Change in Owners’ Equity (Parent Co.)
Amount of the Current Term
In RMB
Amount of the Current Term
Capital
Less: Common Total of
Items paid in (or Capital Special Surplus Retained
Shares in risk owners’
share reserves reserves reserves profit
stock provision equity
capital)
756,909,90 41,078,838 24,676,077 232,076,53 1,054,741,
I. Balance at the end of last year
5 .54 .16 9.24 359.94
Plus: Change of accounting
policy
Correcting of previous
errors
Others
II. Balance at the beginning of 756,909,90 41,078,838 24,676,077 232,076,53 1,054,741,
current year 5 .54 .16 9.24 359.94
III. Amount of change in current 6,980,842. 6,978,173.
-2,668.37
term (“-“ for decrease) 1 73
6,980,842. 6,980,842.
(I) Net profit
1 1
(II) Other misc. income -2,668.37 -2,668.37
6,980,842. 6,978,173.
Total of (I) and (II) -2,668.37
1 73
(III) Investment or decreasing of
capital by owners
1. Capital inputted by owners
2. Amount of shares paid and
accounted as owners’ equity
3. Others
(IV) Profit allotment
1. Providing of surplus reserves
2. Common risk provision
3. Allotment to the owners (or
shareholders)
4. Others
(V) Internal transferring of
owners’ equity
40
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
1. Capitalizing of capital reserves
(or to capital shares)
2. Capitalizing of surplus
reserves (or to capital shares)
3. Making up losses by surplus
reserves
4. Others
(VI) Special reserves
1. Provided this year
2. Used this term
(VII) Others
IV. Balance at the end of this 756,909,90 41,076,170 24,676,077 239,057,38 1,061,719,
term 5 .17 .16 1.34 533.67
Amount of Last Year
In RMB
Amount of Last Year
Capital
Less: Common Total of
Items paid in (or Capital Special Surplus Retained
Shares in risk owners’
share reserves reserves reserves profit
stock provision equity
capital)
504,606,60 295,033,35 17,834,977 170,506,64 987,981,58
I. Balance at the end of last year
4 9.54 .97 6.52 8.03
Plus: Change of accounting
policy
Correcting of previous
errors
Others
II. Balance at the beginning of 504,606,60 295,033,35 17,834,977 170,506,64 987,981,58
current year 4 9.54 .97 6.52 8.03
III. Amount of change in current 252,303,30 -252,329,9 5,475,020. 5,448,420.
term (“-“ for decrease) 1 01 08 08
5,475,020. 5,475,020.
(I) Net profit
08 08
(II) Other misc. income -26,600 -26,600
5,475,020. 5,448,420.
Total of (I) and (II) -26,600
08 08
(III) Investment or decreasing of
0 0 0 0 0 0 0 0
capital by owners
1. Capital inputted by owners
2. Amount of shares paid and
accounted as owners’ equity
3. Others
(IV) Profit allotment 0 0 0 0 0 0 0 0
1. Providing of surplus reserves
2. Common risk provision
3. Allotment to the owners (or
shareholders)
4. Others
(V) Internal transferring of 252,303,30 -252,303,3
0 0 0 0 0 0
owners’ equity 1 01
1. Capitalizing of capital reserves 252,303,30 -252,303,3
(or to capital shares) 1 01
2. Capitalizing of surplus
reserves (or to capital shares)
3. Making up losses by surplus
reserves
4. Others
(VI) Special reserves
1. Provided this year
2. Used this term
(VII) Others
IV. Balance at the end of this 756,909,90 41,078,838 24,676,077 232,076,53 1,054,741,
term 5 .54 .16 9.24 359.94
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(III) Company Profiles
China Fangda Group Co., Ltd. (the Company) was approved by the Government of Shenzhen with Document
深府办函（1995）194号, and was founded, on the basis of Shenzhen Fangda Construction Material Co., Ltd., by
way of share issuing in October 1995. The name was alterred to “Shenzhen Fangda Industrial Co., Ltd.” thereon.
The Company issued foreign currency shares (B shares) and local currency shares (A shares) and listed in
November 1995 and April 1996 respectively in Shenzhen Stock Exchange. On June 12, 1997, as approved by
Shenzhen Bureau of Commerce with Document 深招商复[1997]0192号, the Company was re-registered to a
sino-foreign joint venture. Registration routines were completed with Shenzhen Commerce and Industry
Administration on November 12, 1997. In October 1999, the Company started to use the current name. The
Company’s registered capital was changed to RMB756,909,905 in May 2011.
The Company holds the business registration number of 440301501124785, and registered address of Fangda
Building, Kejinan Road 12, High-tech Zone, Shenzhen. Mr. Xiong Jianming is the legal representative.
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 (exclude restricted items and produces under
export certification, and their design, developing, installation, construction, technical consulting, and training.
Managing and leasing of properties under possession (Fangda Building at Ke-Ji-Nan Road 12, and Fangda Town
at Longzhu Road 4), parking services of Fangda Building.
Mr. Xion Jianming is the substantial controller of the Company.
(IV) Accounting policies, accounting estimations and correcting of previous errors
1. Basis of financial statement
Preparing of the financial statements was on the assumption of the Company’s perpetual operation, according
to the trades and events practically happened, complying with the Enterprise Accounting Standard issued by the
Department of Finance and relative application guidance. Accounting estimations and assumptions are used in
preparing the financial statements with compliance to the Enterprise Accounting Standard, which will make
influences on the assets, liabilities or contingent liabilities at the financial statement date, as well as the income
and expenses in the report term.
2. Statement of compliance to the Enterprise Accounting Standard
The financial report and statements are prepared with compliance to the requirement of the Enterprise
Accounting Standard. They reflect the financial position as of June 30, 2012, as well as the business performance
and cash flow situation in the first half of 2012 of the Company frankly and completely.
3. Accounting period
The fiscal year of the Group is the solar calendar year, that is from January 1 to December 31.
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
4. Standard currency for bookkeeping
The Company takes RMB as the standard currency for bookkeeping.
Standard Currency for bookkeeping of overseas subsidiaries.
5. Accounting treatment of the merging entities under common control and different control
(1) Merger of entities under common control
Assets and liabilities obtained by the merging party are calculated at their book value with the merged parties
at the merger day. The differences between the book value of net assets and the book value of consideration price
(or the total of face value of share issued) are adjusted to the share capital premium under the capital reserves. If
the share capital premium is not enough to neutralize the difference, it will be adjusted to the retained gains.
(2) Merger of enterprises under different control
For merger of entities under different control, the merger cost is the fair value of the asset paid, liability
undertaken, and equity securities issued for exchanging of control power over the entities at the day of acquisition.
When a merger of entity under different control is undertaken through multiple trades, accounting treatments
will be carried out separately on individual and consolidated financial statements as the followings:
(1) In the individual financial statements, the initial investment cost of the particular project will be the sum
of book value of equity in the entity before the date of acquisition and the newly added investment cost; When the
share equity before the date of acquisition involves with other integrated gains, such gains (such as the part of fair
value of the sellable financial assets accounted into capital reserves, same for the followings) are transferred into
current investment income account.
(2) In the consolidated financial statements, the share equity in the acquired entity before the date of
acquisition is recalculated upon the fair value of the equity at the date of acquisition. The balance between the fair
value and book value shall be accounted into current investment income account; When the share equity before
the date of acquisition involves with other integrated gains, such gains are transferred into investment income
account of the period when it occurred.
Agency expenses and other administrative expenses such as auditing, legal consulting, or appraisal services
occurred relating to the merger of entities are accounted into current income account when occurred; the
transaction fees of equity certificates or liability certificates issued by the purchaser for payment for the
acquisition are accounted at the initial amount of the certificates.
For merger of enterprises under common control, the merger cost is the fair value of capital paid, liability
occurred or undertaken, or equity instrument issued thereof, on the day of purchasing to obtain power of control
over the bought party, and those expenses directly related to the merger. For merger done through multiple trades,
the overall cost is the sum of cost of each single trade. If the merger contract provided faith on future events that
may influence the merger cost, and the event has great possibility to happen, and its influence may be reliably
measured, then it will be accounted into merger cost.
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
6. Preparing method of consolidated financial statements
(1) Preparation of consolidated financial statements
The Company puts subsidiaries and special entities on which the Company has substantial controlling power
in the consolidated financial statement.
The Financial Statements of the Company are prepared according to “Enterprise Accounting Standard No.33
– Consolidated Financial Statements” and relative rules. All major trades and interchanges within the
consolidation range have been neutralized. The part of shareholders’ equities not attributable to the parent
company are presented individually as minority shareholders’ equity in the consolidated financial statements.
When the accounting policies and periods of the subsidiaries are not complying with those of the Company’s,
they shall be adjusted according to the Company’s accounting policy and accounting period.
Subsidiaries added as merger of enterprises under different control, the individual statement shall be adjusted
basing on the recognizable net asset fair value at the day of purchasing; subsidiaries added as merger of enterprise
under common control, it will be regarded as existing since the contol power is acquired, the initial figures of the
consolidated balance sheet will be adjusted as well as the related items.
(2) Accounting treatment when the share equity of the same subsidiary is purchased and sold, or sold and
purchased in successively two years
No event regarding share equity of the same subsidiary is purchased and sold, or sold and purchased in successively two years
occurred in the report period and comparison periods.
7. Recognition basis of cash and cash equivalents
Cash equivalent in cash flow statement refers to the investments with short term, strong liquidity and small
risk of value fluctuation that are held by the Company and easily converted into cash with known amount.
8. Translation of businesses and accounts in foreign currency
(1) Business in foreign currency
Trades of the Company made in foreign currencies are translated into RMB basing on the middle rate
announced by China Foreign Currency Trading Center which is authorized by People’s Bank of China at the date
when the trade is conducted. At the balance sheet date, foreign currency items are translated on the middle rate
announced by China Foreign Currency Trading Center, the translation differences, except for those constructed or
produced and can be capitalized directly into relative capital costs, are accounted into current gain/loss account.
Non-monetary items accounted in foreign currency and on historical costs, are still use the middle rate announced
by China Foreign Currency Trading Center, and the amount in standard currency will not be changed.
(2) Translating of financial statements in foreign currencies
None of the individual financial statements need to be translated from foreign currencies in the report
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
period and/or the comparison periods.
9. Financial instruments
(1) Categorising of financial instruments
Financial assets are categorized as: financial assets measured at fair value with variations accounted into current
income account, account receivable (see Note II (X) for details), and disposable financial assets. Categorizing of
financial assets are decided by the intention and capability of holding of the financial assets by the Company or its
subsidiaries.
The Company has financial liabilities including: financial liabilities and other financial liabilities accounted into
current gain/loss account at fair value.
(2) Recognition basis and measurement of financial instruments
(1) Financial assets measured at fair value with variations accounted into current income account
Including transactional financial assets and financial assets directly measured by fair value and with variations
accounted into current gain/loss account, which are initially recognized at the fair value when obtained, the related
transaction expenses are accounted into current income account when occurred. Cash dividend and bond interests
included in the prices paid which are announced but not distributed are recognized as receivable items
individually. Interests or cash dividends received during the period of holding the particular financial assets are
recognized as investment gains when received. At the balance sheet day, the fair values of such financial assets
are accounted into current income account. At disposal of such financial assets, the differences between the fair
value and initial booked value are recognized as investment gains, and the fair value fluctuation gain/loss will be
adjusted accordingly.
(2) Sellable financial asset
Sellable financial asset refers to those sellable non-derivate financial assets recognized initially, namely the
Company does not elicit financial assets accounted by fair value with variations accounted into current income
account, investment hold to expiration, loans, and receivables.
Available for sale financial assets are initially recorded at fair value plus any directly attributable transaction costs
on the trade date and subsequently re-measured at fair value. The price includes the declared but not received
bond interest or cash dividend is recognized as a separate item.
Interest or dividend received in the period of holding the sellable financial assets are recognized as investment
gains. At the balance sheet day, sellable assets are measured on fair value basis, fluctuation of the fair value is
accounted into “capital reserves – other capital reserves”.
At disposal of sellable financial assets, the difference between the amount received and the book value of the
financial asset will be accounted into “investment gains”, meanwhile, the amount of accumulative change of fair
value originally accounted into owners’ equity corresponding to the disposed part will be transferred over to
“investment gains”.
(3) Financial liabilities measured at fair value with variations accounted into current income account
Including transactional financial liabilities and financial liabilities directly measured by fair value and with
variations accounted into current gain/loss account, including: 1) Financial liabilities undertaken to be
repurchased in short future; 2) Those directly assigned as financial liabilities directly measured by fair value and
with variations accounted into current gain/loss account in view of risk management or strategic investment needs;
3) Derivate instruments not used as hedging instruments.
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Such financial liabilities are evaluated at fair value, and the transaction expenses could happen in future clearance
are not deducted. If fair value is not suitable, evaluation will be on balance of cost after amortizing.
(4) Other financial liabilities
Other financial liabilities are those other than financial liabilities measured by fair value and changes recorded
into current gain/loss account, which mainly include account payable and long-term payable accounts generated
by purchasing of goods. Other financial liabilities are initially recognized by their fair value plus relative trade
expenses. Subsequent measurement is on amortized costs.
For other financial liabilities which are not at fair value through profit or loss, for example financial guaranteed
contracts, they are initially recognized at fair value plus any directly attributable transaction costs. After the initial
recognition, the other financial liabilities are measured at the higher of the followings:
1. The amount measured in accordance with “Accounting Standards for Business Enterprises No.13 –
Contingency”
2. The amortized balance measured in accordance with “Accounting Standards for Business Enterprises No.14 –
Revenue”
(3) Recognition basis and measurement for transferred financial assets
Transferring of financial assets including:
(1) Transfer the rights of collecting the cash flow attached to the financial asset to another party;
(2) Transfer the financial asset to another party, but reserve the rights to collect cash flow related to such
financial asset, and is responsible to pass the cash flow over to the final beneficiary, and satisfying all of the
following conditions:
A. Only when equal cash flow was received upon the financial asset, the party is obligated to give it to the
final beneficiary party. When an enterprise is making payment on other’s behalf for a short term, and will be
retrieved in full along with interest at fair market rate, shall be deemed as satisfying this condition.
B. As bounded by the contract, the financial asset is not able to be disposed or use as guarantee, however it
can be used as guarantee for cash flow of final payment.
C. The party is obligated to duly forward the cash flow to the final beneficiary party. However except for the
cash or cash equivalent the enterprise is not entitled to reinvest, but received between the two payments as setout
by the contract. When the party is reinvesting the cash according to the contract, the gains shall be passed to the
final beneficiary party according to the contract.
Recognition of the financial asset is terminated as soon as all of the risks and rewards attached to the
financial asset has been transferred to the receiver. Whereas if all of the risks and rewards attached to the financial
assets are reserved, recognition of the financial asset shall not be terminated.
When non of the transferring or reserving of the all risks and rewards attached to the financial asset happened,
it will be handled as:
(1) When the controlling power over the financial asset is given up, it will be terminated.
(2) When the controlling power is not given up, financial asset and related liability shall be recognized
according to the extend the Company is involving in the financial asset.
(4) Temination condition for recognition of financial liabilities
As soon as partial or all of the current responsibilities attached to such financial liabilities, recognition of
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
partial or all of the financial liabilities will be terminated. When recognition of financial liabilities are partially or
wholly terminated, the balance between the book value and the price paid (including non-monetary asset
transferred out or new financial liabilities undertaken) shall be accounted into current income account.
(5) Recognition of fair values of financial assets and liabilities
Recognition of fair value is divided into three levels: firstly, when a quotation of the same asset or liability is
acquirable from an active market at the date of recognition, the fair value will be used; secondly, when a quotation
of similar asset or liability is acquirable from an active market at the date of recognition, or in an inactive market,
the fair value will be used after made reasonable adjustment; thirdly, when no such market quotation is available
for the same or similar asset or liability, the fair value will be recognized with reference to the date used by the
participators to determine the similar asset or liability. Observable value is used rather than unobservable value.
(6) Providing of impairment provision on financial assets (exclude receivable accounts)
At balance sheet date, the Company performs testing on the book value of financial assets other than those
measured by fair value and changes accounted into current income account.
As for sellable financial assets, if the fair value decreased significantly, and it was predicted not temporary,
then impairment loss will be accounted at the difference between the balance of initial cost less retrieved principle
less amortized amount and current fair value. The accumulative losses formed by decreasing of fair value
originally accounted into the owner’s equity are transferred out along with providing of impairment losses, and
accounted into “asset impairment loss”.
(7) If investment held to mature is recategorized to sellable financial assets, please state th intention or
evidence of change in capability
No investment held to mature is recategorized to sellable financial assets in the report period or comparison periods.
10. Recognition standard and providing basis of bad debt provision on receivable accounts
Accounts receivable (including account receivable and other account receivable) are initially accounted
according to the contract amount or agreement amount. Accounts receivable that are unrecoverable due to
bankruptcy of the debtor (still unrecoverable through insolvency procedures); death of the debtor, and no
inheritance or heir of liabilities available; or failure of clearing overdue liabilities by the debtor, will be accounted
as bad debt losses through legal verification procedures.
When the Company is raising finance from financial institutions such as banks against receivable credits by
means of transferring, pledging, or discounting, according to the related contracts, when the debtor failed to repay
the debt, if the Company was responsible to repay the amount, then the particular receivable credit will be treated
as pledged loan; if the Company was not responsible to repay the amount, then the receivable credit will be treated
as transferred credit, and transferring gain/loss shall be recognized.
When the Company retrieves the receivables, the differences between the amount retrieved and book value of
the receivable shall be accounted into current gain/loss account.
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(1) Bad debt provision on receivable accounts with major amount individually
Basis of recognition or The Company recognizes project receivables over RMB8 million (included) as “individual receivable
standard amount of with large amount” while recognizes product receivables over RMB2 million (included) as “individual
individual account with receivable with large amount”; Other receivable accounts with over RMB1 million (included) as
large amount “ individual other receivable account with large amount”
On balance sheet day, the Company performs impairment examination individually on each large amount
receivables, and recognizes impairment and provides bad debt provision when the impairment is
Basis of bad debt
recognized; those not impaired are accounted along with the minor amount receivables and recognized in
provision
risk groups, and impairment loss and provisions are accounted at certain percentage according to the
group at the balance sheet day.
(2) Receivable accounts on which bad debt provisions are provided as groups
Name of the portfolio Basis of bad debt provision Basis of recognition for groups
Receivable accounts out of the
Age analysis method If it is in the consolidation range
consolidation range
Receivable account within the
If it is in the consolidation range
consolidation range
Accounts on age basis in the portfolio:
[V] Applicable [] Not applicable
Age Rate for receivables (%) Rate for other receivables (%)
Within 1 yr, (included) 3% 3%
1-2 yrs 10% 10%
2-3 yrs 30% 30%
Over 3 yrs 50% 50%
3-4 yrs 50% 50%
4-5 yrs 50% 50%
over 5 yrs 50% 50%
Accounts on percentage basis in the portfolio:
[] Applicable; [V] Not applicable
Accounts on other basis in the portfolio:
[] Applicable; [V] Not applicable
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(3) Receivable accounts with minor amount but bad debt provisions are provided individually
Reason for providing bad debt individually:
The Company recognizes project receivables over RMB8 million (included) as “individual receivable with large amount” while
recognizes product receivables over RMB2 million (included) as “individual receivable with large amount”; Other receivable
accounts with over RMB1 million (included) as “ individual other receivable account with large amount”
Individual impairment tests are performed individually on receivable accounts aged over 5 years. Full impairment provision will
be provided when there is no substantial evidence showing that it could be retrieved.
Basis of bad debt provision:
Individual impairment tests are performed individually on receivable accounts aged over 5 years. Full impairment provision will be
provided when there is no substantial evidence showing that it could be retrieved.
11. Inventories
(1) Inventory classification
Inventories are those under the Company’s possession for the purpose of selling, in the process of production,
or materials and goods used in production process or providing of services, including materials purchased, raw
materials, low-value consumables, OEM materials, products in process, semi-finished goods, finished goods,
agency goods, and construction in process.
(2) Pricing of inventory to be delivered
[] firs-in-first-out [v] weighted average [] individual recognition []others
Inventories are measured at cost when procured, including purchase cost, processing cost, and other costs.
Actual costs are recognized at weight average when delivered. Transferring of construction materials are
recognized individually.
(3) Recognition of realizable net value of inventory and providing of inventory impairment provision
On the balance sheet date, inventories are accounted depending on which is lower between the cost and the
net realisable value. At overall verification of inventories at the end of year, when the net realisable value is lower
than the cost, provisions for impairment of inventories shall be drawn. Provisions for impairment of inventories
shall be accounted according to the difference between the cost of individual inventory items and the net
realisable value. Including: for inventories such as finished products or materials which will be directly sold, in
the normal operation, the realizable net value will be the balance of estimated selling price less sales expenses and
relative taxations; For those inventories need further processing, in the normal operation, the realizable net value
will be the balance of estimated sales price less costs to make it finished, less estimated sales expenses, and less
relative taxation. At the balance sheet day, inventories with contract prices will be determined for realizable value
separately from those without contract prices. Those inventories which are closely related to a series of
products produced in the same area and with similar purpose, and hard to be evaluated seperately, are provided
collectively; those inventories with large amount and low unit prices, are provided in categories.
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(4) Inventory system
[v] Perpetual inventory [] Fixed date inventory Others
The Company uses perpetual inventory system. Inventories are checked periodicly and the gains and losses
from inventory checking are accounted into current gain/loss account.
(5) Amortization of low-value consumables and packaging materials
Low price consumable
Basis of amortizing: other
Low-value consumables are amortized on on-off amortization basis at using. Other materials are amortized at
50-50 basis.
Packaging materials
Basis of amortizing: one-off
12. Long-term equity investment
(1) Recognition of initial investment costs
Investment of the Company in subsidiaries are valued at investment costs. For long-term share equity
investment formed by shareholding and merger please see Note II(V). Retrospective or retrieved investment are
adjusted to the cost of long term equity investment.
(2) Successive measurement and recognition of gain/loss
The Company uses cost basis in subsequent measurement of investment in subsidiaries, and adjusted on
equity basis when preparing the consolidated financial statement. Except for the announced cash dividend or
profit included in the practical cost or price when the investment was made, the investment gains are recognized at
the announced cash dividend or profit distribution.
(3) Basis to recognize common control and material influence on invested entities
No common control or material influence on invested entities in the report period or comparative periods.
(4) Impairment test and providing of impairment provisions
At the balance sheet day, if evidence showing that impairment occurred on the long-term equity investment,
the recoverable amount shall be decided by the higher one of net amount of fair value less disposal fees and the
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
current value of predicted future cash flow. When the recoverable amount of the long-term equity investment is
lower than the book value, the book value will be reduced down to the recoverable amount, the reduced amount is
recognized as asset impairment loss and counted into current gain/loss account, asset impairment provision shall
be provided accordingly. Once the long-term equity investment impairment loss is recognized, it will not be
written back in following fiscal terms.
13. Investment property
Investment real estates are buildings rented out.
Investment real estate is measured according to the initial cost. Cost of real estate purchased from outside
includes purchasing price, tax, and other expenses directly related to the real estate; cost of real estate constructed
by the Company itself is constructed by the essential costs to make the real estate usable.
Accounting of investment real estates of the Company is on fair value basis when the following conditions
are satisfied:
(1) There is an active real estate market where the investment real estate is located;
(2) Market price and other related information of similar real estates may be acquired from the market and
used to make reasonable estimation on the fair value of the investment real estate.
At the balance sheet date, the Company uses fair value to measure the investment properties, no depreciation
or amortizing is made on the investment properties, book value is adjusted on the base of fair value of the property
at balance sheet date, and the differences between the fair value and the original book value are counted into
current gain/loss account.
At disposal of investment properties, or retrieve from the property permanently and no further financial
benefit is expected to obtain from the property, recognition of the investment property will be terminated. Balance
of income from disposal, transferring, discarding, or clearing of investment properties less the book value and
related taxes is counted into current gain/loss account.
14. Fixed assets
(1) Recognition of fixed assets
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing
services, lease or for operation & management, and have more than one year of service life.
(2) Recognition and pricing of fixed asset leased by financing
The lower one of fair value of the leased asset and the lowest rental payment at the starting date of the lease is
recognized as the book value of the financed lease.
(3) Depreciation of different fixed assets
Other than fixed assets which have already been provided depreciations in full but still in use, the Company
provides depreciations upon all of the fixed assets. Straight age average basis is adopted in depreciation.
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
According to the property and usage of the fixed assets, the Company decides the service life and predicted
net retained value. At end of each fiscal year, verification will be made on the useful life, predicted retained value,
and depreciation basis, adjustment will be made if difference occurred to the original estimations.
Categories Depreciation age (year) Salvage Value Rate (%) Annual depreciation rate (%)
Houses & buildings 35-45 10 2-2.57
Equipment & machinery 10 10 9
Electronic equipment 5 10 18
Transportation equipment 5 10 18
Other equipment 5 10 18
Fixed asset leased by financing -- -- --
Incl. House & Buildings
Equipment & machinery
Electronic equipment
Transportation equipment
Other equipment 5 10 18
(4) Impairment test and providing of impairment provisions on fixed assets
At the balance sheet day, fixed assets are accounted at the lower one of book value and retrievable value. If
the retrievable value is lower than the book value, the book value will be deducted to the retrievable value, and the
deducted amount will be recorded as asset impairment loss into current income account, and impairment provision
shall be provided accordingly. Once the impairment loss was recognized, it will not be written back in coming
fiscal terms.
(5) Other remarks
Fixed assets are initially measured at costs. Among them, cost of fixed assets purchased from outside include
purchasing price, tariffs and other taxes, and other expenditures directly related to the asset before it reaches the
useful status. Cost of self-build fixed assets is the necessary costs before it is made useful. Fixed assets
invested by investors are booked at the value according to the investment contract, whereas when the contract
value is not fairly acceptable, it will be booked at the fair value. When a payment for purchasing of fixed asset is
overdue and practically forms financing activity, the fixed asset is recognized at the current value of purchasing
price.
When fixed asset is disposed, or made no financial benefit by using or disposing it, recognition is terminated.
Income from disposal, transferring, discarding of fixed assets, less its book value and taxes, is accounted into
current income account.
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15. Construction-in-process
(1) Categories of construction-in-process
Construction in process conducted by the Company itself, its actual cost consists of essential costs of
carrying on the construction till it reaches usable status. Construction in process includes workshops and
equipment installation projects.
(2) Standard and timing for transferring of construction-in-process to fixed assets
Cost of fixed asset which has already become usable but not settled yet, is recognized according to estimated
value, and depreciations share be provided. Upon completion of settlement, the original estimated value shall be
adjusted according to the actual cost, but the depreciations made previously shall not be adjusted.
(3) Impairment test and providing of impairment provisions on construction-in-process
At the balance sheet day, construction in process are accounted at the lower one of book value and
retrievable value. If the retrievable value is lower than the book value, the book value will be deducted to the
retrievable value, and the deducted amount will be recorded as asset impairment loss into current income account,
and impairment provision shall be provided accordingly. Once the impairment loss was recognized, it will not be
written back in coming fiscal terms.
16. Borrowing expenses
(1) Principle of the recognition of capitalized borrowing costs
Borrowing expenses occurred to the Company that can be accounted as purchasing or production of asset
satisfying the conditions of capitalizing, are capitalized and accounted as cost of related asset. Other borrowing
expenses are recognized as expenses according to the occurred amount, and accounted into gain/loss of current
term. Assets satisfying the conditions of capitalization are referring to the fixed assets, investment properties, and
inventories that need a long-term construction or production process to reach the usable or sellable status.
(2) Capitalizing period of borrowing expenses
Borrowing expenses start to be capitalized when all of the followings are satisfied: (1) Asset expense has
already occurred. Asset expenses include cash payment, non-cash asset transferring, or undertaking of debt with
interest done for purchasing or producing of assets. (2) The borrowing expense has already occurred. (3)
Purchasing or production activity, which is necessary for the asset to reach the useful status, has already started.
When the asset satisfying the capitalizing conditions has reached its usable or sellable status, capitalizing of
borrowing expenses shall be terminated.
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(3) Temporarily suspension of capitalizing period
If the construction or production of assets satisfying the capitalizing conditions is suspended abnormally for
over 3 months, capitalizing of borrowing expenses shall be suspended. Borrowing expenses occurred in the
suspension period are recognized as expenses and recorded to current income account, until the construction or
production is resumed. If the suspension is an essential process to make the asset usable or sellable, capitalizing of
borrowing expenses shall be carried forward.
(4) Calculating of borrowing expense capitalizing
In the period of capitalization, the capitalized amount of each fiscal period, if it is a special borrowing for
construction or production of asset satisfying the capitalizing conditions, is the interest expenses actually occurred
less the interest income from the unused part of borrowings or from temporary investment. If it used a common
borrowing for construction or production of asset satisfying the capitalizing conditions, the capitalized interest
amount will be decided by the weighted average of accumulative asset expenses over the capital expenses of the
special borrowing multiply the capitalizing ratio of common borrowing. Capitalizing amount of the interests shall
not more than the actual amount of interest actually occurred to the current relative borrowing.
17. Biological assets
18. Petrolum assets
19. Intangible assets
(1) Pricing of intangible assets
Intangible assets are initially measured by their costs. Intangible assets purchased are booked at the actual
cost to purchase and relative expenses. Intangible assets inputted by investors are booked at the contract or
agreement price, but if the contract or agreement price is not fairly acceptable, it will be booked at fair value.
(2) Estimation of service life of intangible assets with limited service life
Intangible assets with limited useful life are amortized straightly to the useful life, the useful life and amortizing basis are
reconsidered at the end of each year, when there is difference with the original estimation, adjustment shall be made.
Items Expected useful life Basis
Land using right 50 yrs Benificial period
Patent 10 years Benificial period
Industrial property and special tech 10 years Benificial period
Software 5,10 yrs Benificial period
Other intangible assets 10 yrs or beneficial age Benificial period
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(3) Intangible assets without certain useful life
Intangible assets without certain useful life are not amortized. They will be reconsidered in each accounting
period, if strong evidence showing that the useful life became limited, then it will be estimated, and amortized on
straight basis. Intangible asset without certain useful life shall be tested each year whether or not there is evidence
of impairment.
(4) Providing of intangible asset impairment provisions
On the balance sheet date, the Company measures intangible assets according to the lower of book value and
retrievable value, intangible asset impairment provisions shall be provided at the difference of retrievable value
lower than the book value, and the corresponding impairment loss shall be recorded to current income account.
Once intangible asset impairment losses are recognized, they will not be written back in successive fiscal periods.
(5) Dividing of research stage and development stage of internal R&D projects
Internal R&D expenses are divided into research expenses and development expenses and treated separately.
The period of scientific or technological creation or research is categorized as research period. The period of using
the researching fruits or other know-how into practical projects or designing of substantial products, equipment, or
materials is recognized as development period.
(6) Accounting of internal R&D expenses
Expenses of internal R&D projects in research stages are recorded into current income account when
occurred; expenses of internal R&D projects in development stages, are recognized as intangible assets when all
of the following conditions are satisfied, or otherwise recorded to current income account: (1) Developing of
the intangible asset is about to be completed, and it is technically possible to be put into use or sold; (2) Has the
intention to use or sell it;(3) The intangible asset is proved being able to make financial benefit, including there is
a market for the products using the intangible asset or the intangible asset itself. If the intangible asset is used
internally, its usage should be proved; (4) There are sufficient technologies, financial resources, or other
resources that support the developing, using or selling of the intangible asset; (5) When the expenses
attributable to the intangible asset can be reliably measured. The development expenses accounted in prior income
accounts shall not be recognized as asset in succeeding period. Development expenses that have been capitalized
shall be demonstrated as expenses in the balance sheet, and transferred into intangible asset as soon as it reaches
usable status.
20. Amortization of long-term expenses
Long-term amortizable expenses are those expenses paid and with beneficial period of over one year (not
included), including improving of leased fixed asset, with the amortizing method as below:
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Category Basis of amortization Period of amortizing
Expenses for improving of rental Straight average on period Beneficial period
fixed assets
21. Asset transferring with repurchasing terms
22. Anticipated liabilities
(1) Recognition of expectible liabilities
When responsibilities occurred in connection to contingent issues, and all of the following conditions are
satisfied, they are recognized as expectile liability in the balance sheet: (1) This responsibility is a current
responsibility undertaken by the Company; (2) Execution of this responsibility may cause financial benefit
outflow from the Company; (3) Amount of the liability can be reliably measured.
(2) Accounting of expectible liabilities
Expected liabilities are initially measured at the best estimation on the expenses to exercise the current
responsibility, and with considerations to the relative risks, uncertainty, and periodic value of currency. When the
periodic value of currency is with major influence, then the best estimation will be determined at the discount of
future cash outflow. The book value of expected liability is revised at balance sheet day, and adjustment will be
made to reflect current best estimation.
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
23. Share payment and equity instruments
(1) Category of share payment
(2) Recognition of fair value of equity instruments
(3) Recognition basis of best estimation of exercisable equity instruments
(4) Accounting treatment of share payment plan to be implemented, revised, and terminated
24. Repurchasing of the Company’s shares
25. Revenue
(1) Recognition time for sales of goods
When all of the following conditions are satisfied, the sales of goods are recognized as sales income
according to the contract amount received or receivable from the buyer: (1) Main risks and rewards attached to
the ownership of the goods have been transferred to the buyer; (2) No succeeding power of administration or
effective control is reserved which are usually attached to ownership; (3) Amount received can be reliably
measured; (4) Related financial benefit may inflow to the Company; (5) Relative costs, occurred or will
occur, can be reliably measured.
When collection of contract payment is by differed way, and practically with financing characters, sales
income shall be recognized at the fair value of the receivable contract amount.
(2) Recognition of income from giving of using rights on assets
Income is recognized when the financial benefit in connection with the demising of asset using right was
received and the amount can be reliably measured.
Interest income is recognized according to the applicable period of time and interest rate. Amount of
application fee is recognized according to the period and calculation decided by the related contract.
(3) Deciding of completion percentage when percentage basis is adopted to recognize income from service
providing or construction contracts
Metro screen door projects of the Company and Shenzhen Fangda Automatic System Co., Ltd. (Fangda
Automatic System), and glass curtain wall project of Shenzhen Fangda Decoration Engineering Co., Ltd. (Fangda
Decoration) are individual construction contracts, they are accounted by the following means:
Construction contracts completed within a fiscal year are recognized for their income and cost upon
completion.
Income and expenses of the construction contracts carried over-year are recognized on percentage basis at
balance sheet day when all of the following conditions are satisfied: contract income can be reliably measured,
relative financial benefit can inflow to the Company; progress of the project and costs to complete the contract can
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
be reliably recognized; cost occurred to complete the contract can be clearly distinguished and reliably measured,
which enables comparing of actual cost with predicted cost.
Contract costs are direct and indirect expenses occurred since the date when the contract is engaged till the
completion day. The completion percentage is the accumulated cost already occurred on the predicted total cost.
Construction contracts completed in current term are recognized for income according to the actual total
income of the contract less income recognized in previous terms; meanwhile, the total costs of the contract less
costs recognized in previous terms are recognized as current contract costs. If the total contract cost is predicted to
be greater than the predicted total income, the predicted loss shall be recognized as current cost instantly.
Parts of the curtain wall project under Fangda Decoration are outsourced, and administrative fees are
collected at agreed rate. For these construction contracts, income will be recognized when ongoing payment for
the project is received and corresponding costs are transferred.
26. Government allowance
(1) Categories
Government subsidies are the monetary or non-monetary capital received from the government by free, but
not include capital inputted by the government as investment of owners.
When a government subsidy is monetary capital, it is measured at the received or receivable amount. None
monetary capital are measured at fair value; If no reliable fair value available, recognized at RMB1.
Government subsidies are divided into asset-related subsidies and income-related subsidies. Asset-related
subsidies are those used to construction or purchase long-term assets; income-related subsidies are those other
than asset-related subsidies.
(2) Accounting treatment
Government subsidies in connection with capital are recognized as differed income, and amortized straight to
its useful life, and accounted into current income account.
Government subsidies in connection with gains, which are used to cover future expenses or losses, are
recognized as differed gains, and recorded to current income account to the period when the expenses are
recognized.
27. Deferred income tax asset and deferred income tax liabilities
(1) Basis for recognition of deferred income tax assets
Recognition of differed income tax asset is limited to the provisional difference to be deducted, and
deductible losses and taxable income amount. If the taxable income realized in the future period of transferring of
provisional differences is not sufficient, which made the financial benefit related to the provisional difference
unrealizable, no differed income tax asset is recognized. Differed income tax liabilities generated by the
taxable provisional difference related to fluctuation of fair value of investment in subsidiaries and affiliates are
recognized, but those satisfying the recovering time of the taxable provisional difference are not recognized; For
deferred income tax assets caused by deductible temporary differences related to investment in subsidiaries, affiliates, and joint
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
operations, if the deductible temporary differences are possible to be written back in a expectable future, namely there is a substantial
plan to dispose the investment, and the gains from disposal are enough not only to provide taxable income, but also to deduct the
deductible temporary difference, it shall be recognized.
(2) Basis for recognition of deferred income tax liabilities
28. Operational leasing and financial leasing
(1) Accounting of operational leasing
When the Company is the lender, the rentals from operational leasing are recognized as current gains on straight basis to the periods
of leasing. Initial direct expenses are recorded to current income account.
When the Company is the lessee, the rentals in operational leasing are recorded to relative capital cost or current income
account on straight basis to the periods of leasing. Initial direct expenses are recorded to current income account.
(2) Accounting treatment of financed leasing
The the Company is the lender, the book value of the financial lease rental receivable is accounted as sum of
the lowest rental and initial direct expenses since the starting date of leasing, and the balance not guaranteed shall
be recorded thereon; the balance between the sum of lowest rental, initial direct expenses and not guaranteed
balance and the current value is recognized as unrealized financial income. Unrealized financial income is
recognized to financial income of each period of leasing on actual interest basis.
The Company is the undertaker, the leased asset is booked at the lower one of fair value of the leased asset
and the current value of lowest rental, and the lowest rental payment is booked as long-term payable, and the
difference is regarded as unrecognized financial expense. The initial direct expense is accounted into value of the
leased asset. Initial direct expenses are accounted into value of leased asset. Unrecognized financial expense is
recognized to financial expenses of each period of leasing on actual interest basis. Depreciation of leasing assets is
the same with the fixed assets.
29. Sellable assets in possession
(1) Recognition of sellable assets in possession
(2) Accounting treatment of sellable assets in possession
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
30. Securitilization of asset
31. Hedging instruments
Hedging instruments are the financial instruments adopted by the Company to avoid risks of fluctuating
product prices, namely use the expected change of cash flow of the hedging instruments to wholly or partially
deduct the change of cash flow of the target products. Hedging instrument used by the Company is Aluminum
Future Contract targeting on purchasing of aluminum materials. The Company considers the hedging instrument
highly effective only when the following conditions are satisfied:
1. The hedging instrument can effectively neutralize the risks of the target goods caused by change of cash
flow since it started and in the following period.
2. The actual effectiveness is between 80% and 125%.
The part of gains or loss from hedging instruments attributable to effective hedging, shall be straightly recognized as owners’
equity and demonstrated individually. The amount of the effective hedging shall be decided by the lower one of absolute values of
gain or loss since starting of hedging and the accumulative variation of cash flow predicted from the beginning of hedging.
When a predicted transaction makes the Company recognized a financial asset or liability, the gain or loss originally recognized as
owners’ equity shall be written over to current income account in the same period with the gain or loss of the financial asset or its
influence of the Company’s gain/loss. When the net loss originally recognized to owners’ equity is fully or partially unrecoverable
in succeeding account period, the unrecoverable part shall be written over to current income account. The above hedging accounts are
terminated as soon as expiration, sold, terminated, and disqualified.
32. Change of main accounting policies and estimations
Is there any material change of accounting policies occurred in the year.
[] Yes [V] No
(1) Change of accounting policies
Is there any change in accounting policies in the report period
[] Yes [V] No
(2) Change of accounting estimations
Is there any change in accounting estimations in the report period
[] Yes [V] No
33. Correction of accounting errors in previous period
Is there any accounting error with previous period found in the report period
[] Yes [V] No
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(1) Retrospective restatement
Is there any retrospective restatement on the accounting error with previous periods done in the report term
[] Yes [V] No
(2) Future adoption method
Is there any future adoption method applyable to accounting errors with previous periods found in the report period.
[] Yes [V] No
34. Other principal accounting policies, estimations and preparation method of financial statements
None
(V) Taxation
1. Main categories and rates of taxes
Tax items Tax basis Tax rate
VAT Sales income 17％
Consumption tax
Business tax Income from installation and leasing 3％、5％
City maintenance and construction tax turnover tax payable 7%、5%、1%
Enterprise income tax Amount of income taxable 25％、15％、12.5％
Income tax rate applyable to branches and factories.
2. Preferential tax and approving documents
(1) On May 18, 2012, Fangda Decoration filed for verification of high-tech enterprise. According to the
announcement of the National Tax Bureau (国家税务总局公告2011年第4号), the company is subject to
15% of income tax within the effective period of high-tech enterprise.
(2) On May 18, 2012, Fangda Automatic filed for verification of high-tech enterprise. According to the
announcement of the National Tax Bureau (国家税务总局公告2011年第4号), the company is subject to
15% of income tax within the effective period of high-tech enterprise.
(3) As approved by Nanchang High-tech Development Zone National Tax Bureau with document 洪高国税发
（2008）74号, Fangda New Material started to enjoy the preferable tax policies since 2008. 2010 is the year
of half tax, and 2012 is subject to 12.5% of income tax.
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
3. Other statements
(VI) Consolidating of entities and consolidated financial statements
Overall statement on consolidating of entities and consolidated financial statements.
1. Particulars of the subsidiaries
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(1) Subsidiaries obtained through incorporation or investment
In RMB
Balance of the
owners’ equity
of parent co.
after deducting
Amount for of the
Balance of
deducting exceeding part
other items
minor of minority
Full name Ownership Actual actually Minor
Business Registered Share Voting shareholder’s shareholders’
of the of the Reg. Add. Business Scope investment formed net Consolidated shareholders’
property capital proportion % power % equity in the share of loss
subsidiary subsidiary at year end investment equity
minor over the share
in the
shareholder’s of minority
subsidiaries
equity shareholders in
the owners’
equity at
beginning of
year
Designing,
Fangda Fully-owned manufacturing, and
Shenzhen Ltd. liability 310,000,000 310,000,000 100% 100% Yes
Decoration subsidiary installation of
curtain walls
Designing,
technical
developing,
installation, and
Fangda Fully-owned
Shenzhen Ltd. liability 105,000,000 sales of PSD 105,000,000 100% 100% Yes
Automatic subsidiary
system; import &
export; installation
and processing of
PSD.
Developing,
designing,
Fangda Fully-owned Sino-foreign
Shenzhen 26,543,680 manufacturing of 26,543,680 100% 100% Yes
Yide Co. subsidiary joint venture
new type composite
materials
Fangda Fully-owned Nanchang Ltd. liability 99,328,800 Production and 99,328,800 100% 100% Yes
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
New subsidiary (joint venture selling of new
Material between materials,
companies compound
from Taiwan, materials, curtain
Hong Kong or walls, doors,
Macao) windows, metal
structures, metal
products,
environment
protection products,
metallurgy
equipment,
machinery,
aluminum products,
heat radiation
materials,
macromolecule
materials.
Desgining,
manufacturing,
Ltd. liability
sales and
(Joint venture
Fangda Fully-owned installation of
Nanchang with foreign 20,000,000 20,000,000 100% 100% Yes
Aluminium subsidiary aluminum sections
invested
for curtain walls,
company)
doors, and
windows.
Fully-owned BODY
HK Junjia HK 10,600 Investment 10,600 100% 100% Yes
subsidiary CORPORATE
Manufacturing of
semiconductor
lighting material
and chips; lighting
source
encapsulation;
developing,
Shenyang Controlled
Shenyang Ltd. liability 200,000,000 manufacturing, 200,000,000 64.58% 64.58% Yes 67,487,603.77 -10,726,062.16
Fangda subsidiaries
technical consulting
of semiconductor
lighting products;
developing,
designing,
manufacturing,
engineering,
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
installation and
trading of
semiconductor
lighting system;
materials and
products related to
semi-conductor
lighting
Developing,
designing and sales
of new construction
material;
developing,
designing,
Dongguan Ltd. liability installation and
Fully-owned
New (Sole trading of curtain
subsidiary of Dongguan 272,800,000 272,800,000 100% 100% Yes
Material investment by walls, PSD systems,
subsidiary
Co., Ltd. legal person) LED products,
metal roof products,
and solar-energy
products; interior
decoration; water
and power system
installation
Developing of
Ltd. liability
hardware and
Kexunda Fully-owned (Sole
Shenzhen 1,000,000 software, system 1,000,000 100% 100% Yes
Co. subsidiary investment by
assembling,
legal person)
technical consulting
R&D, design,
manufacturing,
sales, installation,
technical services
of new construction
Chengdu material, curtain
Fully-owned
New wall, PSD, LED
subsidiary of Chengdu Ltd. liability 20,000,000 20,000,000 100% 100% 是
Material products, metal
subsidiary
Co. roof, PV structure,
solar energy
products, lighting
system; interior and
exterior decoration,
power supply
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
installation; curtain
wall engineering;
labor services;
goods and
technology import
and export;
workshop leasing;
and machinery
leasing.
Other statements on Subsidiaries obtained through incorporation or investment
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(2) Subsidiaries procured through merger of entities under common control
In RMB
Balance of the owners’
equity of parent co. after
Amount for
Balance of deducting of the
deducting minor
other items exceeding part of
Full name Ownership Actual Minor shareholder’s
Reg. Business Registered Business actually formed Share Voting minority shareholders’
of the of the investment Consolidated shareholders’ equity in the
Add. property capital Scope net investment proportion % power % share of loss over the
subsidiary subsidiary at year end equity minor
in the share of minority
shareholder’s
subsidiaries shareholders in the
equity
owners’ equity at
beginning of year
Other statements on subsidiaries procured through merger of entities under common control
(3) Subsidiaries procured through merger of entities under different control
In RMB
Balance of the
owners’ equity of
Amount for parent co. after
Balance of
deducting deducting of the
other items
Minor minor exceeding part of
Full name Ownership Actual actually
Reg. Business Registered Share Voting shareholder’s minority
of the of the Business Scope investment formed net Consolidated shareholders’
Add. property capital proportion % power % equity in the shareholders’ share
subsidiary subsidiary at year end investment in equity
minor of loss over the
the
shareholder’s share of minority
subsidiaries
equity shareholders in the
owners’ equity at
beginning of year
Shenzhen Subsidiary Shenzhen Ltd. 1,000 R&D, 18,991,300 64.58% 64.58% Yes
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Woke of liability designing,
controlled production,
subsidiary after service of
LED products;
installation of
LED color
displayer, city
and road
lighting system.
Other statements on subsidiaries procured through merger of entities under different control
Note: Shenzhen Woke was the subsidiary under direct control of Fangda Guoke; while Fangda Guoke was taken over by Shenyang Fangda, the share equity is
planned to under possession of Shenyang Fangda. The relative procedures are under process. However Shenzhen Woke is under the control of Shenyang Fangda
before or after the takeover.The minority shareholders’ equity of Shenzhen Woke has already been included in the minority shareholders’ equity of Shenyang Fangda,
thus it is not presented separately in this table.
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
2. Entities with special purposes or entities on which the Company has cotrolling power thorugh entrusted
operation or leasing
[] Applicable; [V] Not applicable
Other statement on entities with special purposes or entities on which the Company has cotrolling power thorugh entrusted operation
or leasing
3. Change of consolidation range
Change of consolidation range:
The consolidation range has changed in the report period for the investment and incorporation of Chengdu New
Material Co., Ltd.
[V] Applicable [] Not applicable
One new entity was added to the consolidation range comparing with the previous term, the reason was:
Incorporation of Chengdu New Material Co.
No entity was deducted from the consolidation range in the report period.
4. Entities included or excluded in the consolidation range in the report period
Subsidiaries, entities with special purpose, or entities on which the Company has cotrolling power thorugh entrusted operation or
leasing added to the consolidation range in the report period.
In RMB
Name Net asset at end of term Net profit of the current term
Chengdu New Material Co. 19,479,146.53 -520,853.47
Subsidiaries, entities with special purpose, or entities on which the Company has cotrolling power thorugh entrusted operation or
leasing excluded from the consolidation range in the report period.
In RMB
Net profit from beginning of year
Name Net asset at day of disposal
to the date of disposal
Other statements on entities included to or excluded from the consolidation range in the report period
5. Merger of entities under common control in the report term
In RMB
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Cash flow for
Recognition basis of Income from the Net profit of the
Substaintial business activities
Entities taken over entities under beginning of period period until the date
controller of the period until
common control to the date of merger of merger
the date of merger
Other statements on merger of entities under common control.
6. Merger of entities under different control in the report term
in RMB
Entities taken over Amount of goodwill Accounting of goodwill
Other statement on merger of entities under different control.
7. Subsidiaries reduced for disposal of shares and lose of control power
Name of the subsidiaries Date of disposal Recognition of gain/loss
Other statement on subsidiaries reduced for disposal of shares and lose of control power
8. Reverse acquisition occurred in the report period
Goodwill recognized in merger
Basis for recognition of reverse
The undertaker Recognition of merger cost or accounting basis of current
acquisition
gain/loss
Other statements on reverse acquisition.
9. Takeover occurred in the report period
In RMB
Type of takeover Main assets taken over Main liabilities taken over
Takeover under common control Items Amount Items Amount
Takeover under different control Items Amount Items Amount
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Other statements on takeover.
10. Exchange rate of main accounts of overseas businesses
(VII) Notes to key items in the consolidated financial statements
1. Monetary fund
In RMB
End of term Beginning of term
Items Amount of foreign Exchan Amount of Exchange
Amount RMB Amount RMB
currency ge rate foreign currency rate
Cash: -- -- 29,127.3 -- -- 27,427.37
RMB -- -- 28,837.11 -- -- 25,877.99
HKD 355.96 0.82 290.19 1,911.16 0.8107 1,549.38
Bank account: -- -- 297,571,921.04 -- -- 310,876,944.8
RMB -- -- 297,564,580.93 -- -- 310,189,424.04
USD 1,161.41 6.32 7,340.11 109,114.69 6.3009 687,520.76
Other monetary capital -- -- 34,870,244.1 -- -- 13,875,978.6
RMB -- -- 34,689,940.55 -- -- 12,590,607.47
USD 28,506.94 6.32 180,303.55 203,998.02 6.3009 1,285,371.13
Total -- -- 332,471,292.44 -- -- 324,780,350.77
Accounts under pledge, restriction, or saved abroad, which are attached with potential risks, shall be stated individually.
Note 1: There was RMB12 million of bank savings at end of period under possession of Fangda Decoration
under restriction due to lawsuit event.
Note 2: There was a balance of RMB34,870,244.10 at end of period under other monetary capital, which was
mainly the RMB34,689,940.55 of deposit for bank accepted notes and guarantee letters. These are not regarded as
cash equivalents at preparing of cash flow statement.
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
2. Transactional financial assets
(1) Transactional financial assets
In RMB
Items Fair value at end of term Fair value at beginning of term
Transactional bond investment 0 0
Transactional equity instruments 0 0
Financial assets assigned to be accounted into current
0 0
gain/loss account at fair value
Deductive financial assets 0 0
Hedge instrument 0 0
Others 0 0
Total 0 0
(2) Transactional financial assets with restriction to liquefy
In RMB
Restriction for sale or other material restriction on
Items Amount at end of term
liquefying
(3) Statements on hedge instruments and related tradings
3. Notes receivable
(1) Categories of notes receivable
In RMB
Categories End of term Beginning of term
Bank acceptance 600,000 6,303,353.88
Total 600,000 6,303,353.88
(2) Notes receivable under pledge
In RMB
Issuer Date of issue Expired on Amount Remark
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Total -- -- 0 --
Notes:
(3) Notes transferred to account receivable for the issuer is not able to execute the liability, and notes
endorsed to other parties but are not mature yet at the end of period
In RMB
Issuer Date of issue Expired on Amount Note
Total -- -- 0 --
Notes:
Notes endorsed to other parties but not due
In RMB
Issuer Date of issue Expired on Amount Note
Shenzhen Ruihua
Mar 01, 2012 Sept 1, 2012 1,058,600.43
Construction Co., Ltd.
Shenzhen Fangda
Automatic System Co., Jun 5, 2012 Sept 5, 2012 1,035,995.78
Ltd.
Shenzhen Sanxin Curtain
Wall Engineering Co., Apr 23, 2012 Oct 23, 2012 1,000,000
Ltd.
Shenzhen Ruihua
Apr 10, 2012 Oct 10, 2012 997,654.78
Construction Co., Ltd.
Zhongjian Bureau NO.3
Apr 27, 2012 Jul 27, 2012 981,217.8
Decoration Co., Ltd.
Total -- -- 5,073,468.79 --
Notes:
Statements on commercial accepted notes already discounted or under pledge.
4. Dividend receivable
In RMB
Items Beginning of term Increased this term Decreased this term End of term
Dividend receivable with 0 0 0 0
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
age within 1 year
In which:
Dividend receivable with
0 0 0 0
age over 1 year
In which: -- -- -- --
Total 0 0
Notes:
5. Interest receivable
(1) Interest receivable
In RMB
Items Beginning of term Increased this term Decreased this term End of term
Interest receivable 201,961.11 156,849.92 201,961.11 156,849.92
Total 201,961.11 156,849.92 201,961.11 156,849.92
(2) Overdue interests
In RMB
Loan provided by Days overdue Amount of interests overdue
Total -- 0
(3) Statement on interest receivable
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
6. Account receivable
(1) Account receivable presented on categories
In RMB
End of term Beginning of term
Categories Book balance Bad debt provision Book balance Bad debt provision
Amount Proportion % Amount Proportion % Amount Proportion % Amount Proportion %
Receivables
with major
individual
amount and
0 0 0 0
bad debt
provision
provided
individually
Receivables provided bad debt provision in groups
Receivables
beyond
839,261,693.58 97.58% 119,331,435.48 14.22% 786,013,262.74 97.43% 121,679,764.63 15.48%
consolidation
range
Sub-total of
839,261,693.58 97.58% 119,331,435.48 14.22% 786,013,262.74 97.43% 121,679,764.63 15.48%
group
Account
receivable
with minor
individual
20,770,714.18 2.42% 20,731,784.64 99.81% 20,731,784.64 2.57% 20,731,784.64 100%
amount but
bad debt
provision is
provided
Total 860,032,407.76 -- 140,063,220.12 -- 806,745,047.38 -- 142,411,549.27 --
Remarks on categories of receivable accounts:
The Company recognizes project receivables over RMB8 million (included) as “individual receivable with large amount” while
recognizes product receivables over RMB2 million (included) as “individual receivable with large amount”.
Receivable accounts with large amount individually and bad debt provisions were provided
[] Applicable; [V] Not applicable
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Receivable accounts on which bad debt provisions are provided on age analyze basis in the portfolio
[V] Applicable [] Not applicable
In RMB
End of term Beginning of term
Book balance Book balance
Age
Proportion Bad debt provision Proportion Bad debt provision
Amount Amount
% %
within 1 yr
In which: -- -- -- -- -- --
553,553,504.75 64.36% 17,166,438.12 476,396,053.72 60.61% 14,291,881.61
Subtotal of within
553,553,504.75 64.36% 17,166,438.12 476,396,053.72 60.61% 14,291,881.61
1 year
1-2 years 84,673,135.23 9.85% 8,467,313.52 98,991,085.32 12.59% 9,899,108.54
2-3 years 34,099,214.88 3.96% 10,229,764.46 39,121,436.82 4.98% 11,736,431.05
Over 3 yrs 166,935,838.72 19.41% 83,467,919.38 171,504,686.88 21.82% 85,752,343.43
3-4 years 26,215,555.71 3.05% 13,107,777.85 46,442,957.34 5.91% 23,192,179.77
4-5 years 43,601,856.97 5.07% 21,800,928.48 46,031,564 5.86% 23,015,782
over 5 yrs 97,118,426.05 11.29% 48,559,213.03 79,030,165.54 10.05% 39,544,381.66
Total 839,261,693.58 -- 119,331,435.49 786,013,262.74 -- 121,679,764.63
Receivable accounts on which bad debt provisions are provided on percentage analyze basis in a portfolio
[] Applicable; [V] Not applicable
Receivable accounts on which bad debt provisions are provided by other ways in the portfolio
[] Applicable; [V] Not applicable
Receivable accounts with minor amount but on which bad debt provisions are provided individually at end of period
[V] Applicable [] Not applicable
In RMB
Description of the receivable accounts Book balance Bad debt provision Rate Reason to provide
Trade receivable 1,373,041.48 1,373,041.48 100% Aged over 5 years, not expectable to be retrieved
Curtain wall project receivable 803,340.45 803,340.45 100% Aged over 5 years, not expectable to be retrieved
Curtain wall project receivable 660,625.41 660,625.41 100% Aged over 5 years, not expectable to be retrieved
Trade receivable 648,100.95 648,100.95 100% Aged over 5 years, not expectable to be retrieved
Trade receivable 563,320.6 563,320.6 100% Aged over 5 years, not expectable to be retrieved
Curtain wall project receivable 430,629.58 430,629.58 100% Aged over 5 years, not expectable to be retrieved
Trade receivable 435,713.62 435,713.62 100% Aged over 5 years, not expectable to be retrieved
Trade receivable 433,868.6 433,868.6 100% Aged over 5 years, not expectable to be retrieved
Curtain wall project receivable 354,177 354,177 100% Aged over 5 years, not expectable to be retrieved
Curtain wall project receivable 346,573.7 346,573.7 100% Aged over 5 years, not expectable to be retrieved
Trade receivable 337,968 337,968 100% Aged over 5 years, not expectable to be retrieved
Curtain wall project receivable 316,861.34 316,861.34 100% Aged over 5 years, not expectable to be retrieved
Curtain wall project receivable 300,000 300,000 100% Aged over 5 years, not expectable to be retrieved
Others 13,766,493.45 13,727,563.91 99.72%
Total 20,770,714.18 20,731,784.64 99.81% --
76
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(2) Receivable accounts written back or retrieved in the report period
In RMB
Bad debt provision
Description of the receivable Reason to write back Basis of original bad Amount written back or
provided before writing
accounts or retrieve debt provision retrieved
back or retrieving
Total -- -- 0 --
Receivable accounts with large amount, or minor amount but on which bad debt provisions are provided individually at end of period
Description of the
Book balance Amount of bad debt Providing rate (%) Reason
receivable accounts
Total -- --
Remarks on receivable accounts with minor single amount but with greater risks after combining with accounts with similar risks:
(3) Receivable accounts actually written off in the report period
In RMB
Name of the Property of the Reason of writing Occurred under
Date of written off Amount written off
companies receivable account off related relationship
Total -- -- 0 -- --
Statement on writing off of receivable accounts.
(4) Particulars about the receivable accounts due from shareholders with 5% or over of the Company’s
shares
[] Applicable; [V] Not applicable
(5) Top 5 debtors in the receivable accounts
In RMB
Relation with the Portion in total
Name of the companies Amount Ages
Company receivables
Shenzhen Metro Group
Client 38,192,293.6 within 1 yr 4.44%
Co., Ltd.
Jiali Construction phase Client 31,316,556.02 within 1 yr 3.64%
77
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
II
Wuhan Metro Group Co.,
Client 30,651,848.31 within 1 yr 3.56%
Ltd.
Shenzhen Greenview
Client 25,287,061.3 1-2 yrs 2.94%
Century Tower
Chongqing Central Plaza
Client 24,765,252.71 within 1 year 2.88%
project
Total -- 150,213,011.94 -- 17.47%
(6) Account due from related parties
In RMB
Name of the companies Relation with the Company Amount Portion in total receivables
Total -- 0 0%
(7) Recognition of receivable accounts terminated
In RMB
Items Amount terminated Gain/loss related to termination
Total 0 0
(8) For securitization on receivable accounts, please provide the amount of asset and liability formed by
continuous involving
In RMB
Items At end of term
Assets:
Subtotal of asset 0
Liabilities:
Subtotal of liabilities 0
78
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
7. Other account receivable.
(1) Other receivable account on categories
In RMB
End of term Beginning of term
Categories Book balance Bad debt provision Book balance Bad debt provision
Amount Proportion % Amount Proportion % Amount Proportion % Amount Proportion %
Other
receivables with
major individual
amount and bad 1,220,316.84 1.49% 1,220,316.84 100% 1,220,316.84 1.82% 1,220,316.84 100%
debt provision
provided
individually
Other receivables provided bad debt provision in groups
Receivables
beyond
77,898,290.58 95.02% 10,544,330.33 13.54% 63,039,807.84 93.91% 9,627,283.9 15.27%
consolidation
range
Sub-total of
77,898,290.58 95.02% 10,544,330.33 13.54% 63,039,807.84 93.91% 9,627,283.9 15.27%
group
Other account
receivable with
minor individual
2,861,928.16 3.49% 2,861,928.16 100% 2,865,928.16 4.27% 2,865,928.16 100%
amount but bad
debt provision is
provided
Total 81,980,535.58 -- 14,626,575.33 -- 67,126,052.84 -- 13,713,528.9 --
Statement on categories of other receivable accounts:
Other receivable accounts over 1 million (included) individually are accounted as “other receivable account with large amount”.
Other receivable accounts with large amount and were provided bad debt provisions individually at end of period.
[V] Applicable [] Not applicable
In RMB
Description of other
Book balance Amount of bad debt Rate Reason
receivables
Aged over 5 years, not
Deposite receivable 1,220,316.84 1,220,316.84 100%
expectable to be retrieved
Total 1,220,316.84 1,220,316.84 -- --
79
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Other receivable accounts in the portfolio on which bad debt provisions were provided on age analyze basis
[V] Applicable [] Not applicable
In RMB
At end of term At beginning of term
Book balance Book balance
Age
Proporti Bad debt provision Proporti Bad debt provision
Amount Amount
on % on %
within 1 yr
In which:
50,015,356.82 61.01% 1,496,966.46 476,396,053.72 60.61% 14,291,881.61
Subtotal of within 1 year 50,015,356.82 61.01% 1,496,966.46 476,396,053.72 60.61% 14,291,881.61
1-2 years 9,895,593.63 12.07% 989,559.36 98,991,085.32 12.59% 9,899,108.54
2-3 years 4,679,327.34 5.71% 1,403,798.2 39,121,436.82 4.98% 11,736,431.05
Over 3 yrs 13,308,012.79 16.23% 6,654,006.31 171,504,686.88 21.82% 85,752,343.43
3-4 years 1,146,628.56 1.4% 573,314.28 46,442,957.34 5.91% 23,192,179.77
4-5 years 3,053,973.47 3.73% 1,526,986.74 46,031,564 5.86% 23,015,782
over 5 yrs 9,100,896.25 11.1% 4,550,448.04 79,030,165.54 10.05% 39,544,381.66
Total 77,898,290.58 -- 10,544,330.33 786,013,262.74 -- 121,679,764.63
Other receivable accounts in the portfolio on which bad debt provisions were provided on percentage basis
[] Applicable; [V] Not applicable
Other receivable accounts in the portfolio on which bad debt provisions were provided on other basis
[] Applicable; [V] Not applicable
Other receivable accounts with minor amount but were provided bad debt provisions individually at end of period
[V] Applicable [] Not applicable
In RMB
Description of other
Book balance Bad debt provision Rate Reason to provide
receivables
Aged over 5 years, not
Deposite receivable 300,000 300,000 100%
expectable to be retrieved
Aged over 5 years, not
Deposite receivable 224,875.84 224,875.84 100%
expectable to be retrieved
Aged over 5 years, not
Deposite receivable 159,800 159,800 100%
expectable to be retrieved
Aged over 5 years, not
Deposite receivable 150,000 150,000 100%
expectable to be retrieved
Others 2,027,252.32 2,027,252.32 100%
80
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Total 2,861,928.16 2,861,928.16 100% --
(2) Other receivable accounts written back or retrieved in the report period
In RMB
Bad debt provision
Description of other Reason to write back Basis of original bad Amount written back or
provided before writing
receivables or retrieve debt provision retrieved
back or retrieving
Total -- -- 0 --
Receivable accounts with large amount, or minor amount but on which bad debt provisions are tested and provided individually at
end of period
Description of the
Book balance Amount of bad debt Providing rate (%) Reason
receivable accounts
Total -- --
Statement on other account receivable with minor amount but with greater risks when combined with other receivable accounts with
similar natures.
(3) Other receivable accounts actually written off in the report period
In RMB
Name of the Reason of writing Occurred under related
Property of account Date of written off Amount written off
companies off relationship
Total -- -- 0 -- --
Statements on writing off of other receivable accounts.
(4) Particulars about the other receivable accounts due from shareholders with 5% or over of the
Company’s shares in the report period
[] Applicable; [V] Not applicable
(5) Natures or contents of other receivable accounts with large amount
In RMB
Nature or content of the
Name of the companies Amount Portion in total other receivables (%)
account
81
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Zhejiang Jiayue Industrial Co.,
6,898,000 Contract security 8.41%
Ltd.
payment for purchasing
Ding Tao 4,300,000 5.25%
of house
Administration fee of
Wang Weihong 3,976,704.28 4.85%
curtain wall project
Zhangjiakou Urban
Development Investment Co., 3,120,543.15 Contract security 3.81%
Ltd.
Nandong Daily 3,000,000 Bidding deposit 3.66%
Total 21,295,247.43 -- 25.98%
Notes:
(6) Top 5 debtors of other receivable accounts
In RMB
Relation with the Portion in total other
Name of the companies Amount Ages
Company receivables (%)
Zhejiang Jiayue
Client 6,898,000 within 1 yr 8.41%
Industrial Co., Ltd.
Ding Tao Property buyer 4,300,000 within 1 yr 5.25%
Wang Weihong Contractor of the project 2,814,940.51 within 1 yr 3.43%
Wang Weihong Contractor of the project 1,161,763.77 1-2 yrs 1.42%
Zhangjiakou Urban
Development Investment Client 3,120,543.15 1-2 yrs 3.81%
Co., Ltd.
Nandong Daily Client 3,000,000 within 1 yr 3.66%
Total -- 21,295,247.43 -- 25.98%
(7) Other accounts receivable from related parties
In RMB
Portion in total other receivables
Name of the companies Relation with the Company Amount
(%)
Total -- 0 0%
82
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(8) Termination of other receivable accounts
In RMB
Items Amount terminated Gain/loss related to termination
Total 0 0
(9) For securitization on other receivable accounts, please provide the amount of asset and liability formed
by continuous involving
In RMB
Items At end of term
Assets:
Subtotal of asset 0
Liabilities:
Subtotal of liabilities 0
8. Prepayment
(1) Prepayment presented by ages:
In RMB
End of term Beginning of term
Age
Amount Ratio (%) Amount Ratio (%)
within 1 yr 23,139,466.68 89.11% 23,321,608.14 89.81%
1-2 years 1,643,652.48 6.33% 978,242.79 3.77%
2-3 years 157,104.61 0.61% 264,158.92 1.02%
Over 3 yrs 1,026,901.63 3.95% 880,359.96 3.39%
Total 25,967,125.4 -- 25,444,369.81 --
Statement on ages of prepayments:
(2) Top 5 receivers of prepayments
In RMB
Name of the companies Relation with the Amount Date Reason of unsettled
83
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Company
Shenzhen Laibote Rights on goods not
Supplier 1,674,978.11 Feb 20, 2012
Trading Co., Ltd. transferred
Guangdong Xingfa Rights on goods not
Supplier 1,293,730.03 Jun 30, 2012
Aluminum Co., Ltd. transferred
Litong Aluminum Rights on goods not
Supplier 1,748,487.57 Jun 30, 2012
(Guangdong) Co., Ltd. transferred
Qinghuangdao Wanxiang
Supplier 100,000 Jan 09, 2009 not settled yet
Aluminum Co., Ltd.
Qinghuangdao Wanxiang
Supplier 970,751.02 Sept 17, 2008 not settled yet
Aluminum Co., Ltd.
Prepaid interest un-amortized interest 1,135,188.89 Jun 30, 2012 To be amortized
Total -- 6,923,135.62 -- --
Statements on main receivers of prepayments:
(3) Prepayment received by shareholding parties holding 5% or above of the Company’s shares in the
report period
[] Applicable; [V] Not applicable
(4) Statements on prepayments
9. Inventories
(1) Categories of inventory
In RMB
End of term Beginning of term
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Raw materials 34,386,723.46 1,770,238.36 32,616,485.1 37,888,262.64 361,902.41 37,526,360.23
Product in process 206,665,646.77 1,847,980.17 204,817,666.6 206,135,441.74 0 206,135,441.74
Products in stock 17,005,318.18 4,532,889.19 12,472,428.99 14,367,024.08 3,609,182.26 10,757,841.82
Material in
294.42 0 294.42 263.29 0 263.29
circulation
Consumable
biological asset
84
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Total 258,057,982.83 8,151,107.72 249,906,875.11 258,390,991.75 3,971,084.67 254,419,907.08
(2) Inventory impairment provision
In RMB
Balance of book Decreased this term
Balance of book value
Categories value at beginning of Provided this term
Written back Transferred at end of term
term
Raw materials 361,902.41 1,408,335.95 1,770,238.36
Product in process 0 1,847,980.17 1,847,980.17
Products in stock 3,609,182.26 1,066,251.32 142,544.39 4,532,889.19
Material in circulation 0 0
Consumable biological
asset
Total 3,971,084.67 4,322,567.44 0 142,544.39 8,151,107.72
(3) Inventory impairment provisions
Percentage of amount written
Basis of providing impairment
Items Reason of written back back in the balance of the
provision
inventory at end of report term
Realizable net value lower than
Raw materials
realizable cost
Realizable net value lower than
Products in stock
realizable cost
Product in process
Material in circulation
Consumable biological asset
Statement on inventories:
10. Other current assets
In RMB
Items End of term Beginning of term
85
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Total 0 0
Statement on other current assets
11. Disposable financial asset
(1) Sellable financial assets
In RMB
Items Fair value at end of term Fair value at beginning of term
Available-for-sale bonds
Available-for-sale equity instruments 2,072,000 2,198,000
Others
Total 2,072,000 2,198,000
The amount of investment held to mature recategorized to sellable financial assets was RMB0, account for 0% of total investment
held to mature.
Statement on sellable financial assets
The sellable financial asset held by the Company was the 700,000 shares of Tianjing Global Megcard with initial
cost of RMB4,850,000.00.
(2) Long-term liability investment in the sellable financial assets
In RMB
Accumulated
Beginning Interest of the interest Ending
Bond items Type of bond Face value Initial costs Expired on
balance period received or balance
receivable
Total -- -- 0 -- 0 0 0 0
Statement on long-term liability investment in the sellable financial assets:
12. Investment held to mature
(1) Investment held to mature
In RMB
Items Balance of book value at end of term Balance of book value at beginning of term
86
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Total
Statement on investment held to mature:
(2) Investment held to mature disposed in the report period before mature
In RMB
Items Amount Percentage in the total investment before disposed %
Total --
Statement on investment held to mature disposed in the report period before mature:
13. Long-term receivables
In RMB
Categories End of term Beginning of term
Financed rent
Incl: un-realized financial gains
Sales of goods in stallments
Providing of services in stallments
Others
Total
14. Investment in affiliates and joint ventures
In RMB
Total
Voting Total
net Total of Net
power of asset Total
Name of Shares held asset turnover profit
Ownership Reg. Legal Business Registered the at liability
the by the at at of the
type Add. representative property capital Company end at end
Companies Company % end current current
in the of of term
of term term
entity % term
term
I. Joint ventures
II. Affiliates
Statements on material diversity in accounting policies, estimations adopted by the Company and the affiliates:
87
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
15. Long-term equity investment
88
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(1) Details of long-term equity investment
In RMB
Statement on
differences Impairment
Percentage of Cash dividend
Company Calculating Beginning Voting power between the Impairment provision
Initial costs Changed by Ending balance share in the of the current
invested in basis balance in the firm % shareholding provision provided this
firm % term
and voting term
rights
Total -- 0 0 0 0 -- -- -- 0 0 0
89
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(2) Constrains on the ability to transfer capital to invested entities
In RMB
Constrains on the ability to transfer capital Accumulated investment loss not
Causation of constrain
to long-term invested entities recognized
Statements on long-term equity investment:
16. Investment property
(1) Investment property on cost basis
[] Applicable; [V] Not applicable
(2) Investment property on fair value basis
[V] Applicable [] Not applicable
In RMB
Increased this term Decreased this term
Fair value at For own use or Gain/loss from Fair value at end
Items Transferred for
beginning of term Purchased transferred from change of fair Disposed of term
own use
inventory value
1. Total of costs 184,908,305.38 0 1,821,930.12 0 0 8,140,049.54 178,590,185.96
(1) House &
184,908,305.38 1,821,930.12 8,140,049.54 178,590,185.96
buildings
(2) Land using
rights
(3) Others
2. Total of fair
92,797,643.97 0 5,936,670.15 0 0 2,582,886.61 96,151,427.51
value fluctuation
(1) House &
92,797,643.97 5,936,670.15 2,582,886.61 96,151,427.51
buildings
(2) Land using
rights
(3) Others
3. Total of
investment 277,705,949.35 0 1,821,930.12 5,936,670.15 0 10,722,936.15 274,741,613.47
property book
90
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
value
(1) House &
277,705,949.35 1,821,930.12 5,936,670.15 10,722,936.15 274,741,613.47
buildings
(2) Land using
rights
(3) Others
State the investment properties which have changed of measurement basis and those which are not licensed yet. State the reason and
expected completion date.
Among the investment property, the workshop No.2 and No.3 located on Beihuan Road in Nanshan
Shenzhen have not been granted the certificate of property, their book value at end of year was
RMB30,143,548.52. They are among the municiple reconstruction plan.
17. Fixed assets
(1) Particulars of fixed assets
In RMB
Balance of book Balance of book
Items value at beginning Increased this term Decreased this term value at end of
of term term
I. Total of original book
522,610,516.8 16,938,886.71 4,211,914.95 535,337,488.56
value
Incl. House & Buildings 245,739,655.74 11,151,897.45 3,110,477.59 253,781,075.6
Equipment & machinery 227,823,431.08 669,066.64 136,763.89 228,355,733.83
Transportation facilities 12,354,809.8 3,425,487.82 550,000 15,230,297.62
Electronics and other
36,692,620.18 1,692,434.8 414,673.47 37,970,381.51
devices
Balance of book
Increased this Provided current Balance at end of
-- value at beginning Decreased this term
term term current term
of term
II. Total of accumulative
203,584,092.13 0 9,464,901.99 1,038,397.29 212,010,596.83
depreciation
Incl. House & Buildings 33,398,583.72 3,371,457.27 227,277.81 36,542,763.18
Equipment & machinery 144,632,453.33 2,471,024.15 2,051.28 147,101,426.2
Transportation facilities 7,621,039.34 456,530.96 495,000 7,582,570.3
Electronics and other
17,932,015.74 3,165,889.61 314,068.2 20,783,837.15
devices
91
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Balance of book
Balance at end of
-- value at beginning --
current term
of term
III. Total of net book value
319,026,424.67 -- 323,326,891.73
of fixed assets
Incl. House & Buildings 212,341,072.02 -- 217,238,312.42
Equipment & machinery 83,190,977.75 -- 81,254,307.63
Transportation facilities 4,733,770.46 -- 7,647,727.32
Electronics and other
18,760,604.44 -- 17,186,544.36
devices
--
IV. Total of impairment
2,251,026.09 -- 17,093,231.19
provisions
Incl. House & Buildings 853,819 -- 853,819
Equipment & machinery 1,397,207.09 -- 2,497,506.18
Transportation facilities --
Electronics and other
-- 13,741,906.01
devices
--
V. Total of fixed asset book
316,775,398.58 -- 306,233,660.54
value
Incl. House & Buildings 211,487,253.02 -- 216,384,493.42
Equipment & machinery 81,793,770.66 -- 78,756,801.45
Transportation facilities 4,733,770.46 -- 7,647,727.32
Electronics and other
18,760,604.44 -- 3,444,638.35
devices
--
Depreciated by RMB9,464,901.99 in the report period; RMB0 transferred from construction-in-process.
(2) Fixed assets temporarily in idle status
In RMB
Accumulated Impairment
Items Original book value Net book value Note
depreciation: provision
Houses & buildings 0
Equipment & 0
92
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
machinery
Transportation
0
facilities
(3) Fixed assets leased by finance
[V] Applicable [] Not applicable
In RMB
Items Original book value Accumulated depreciation: Net book value
Houses & buildings 0
Equipment & machinery 0
Transportation facilities 0
Electronics and other devices 24,500 6,072.63 18,427.37
(4) Fixed assets leased out on fiance
[] Applicable; [V] Not applicable
(5) Fixed assets held for sale at end of period
In RMB
Predicted disposal
Items Book value fair value Predicted disposal date
expense
(6) Fixed asset not licensed yet
Items Reason for not granted Expected date of grant
Houses in Urumuqi Under procedures of property certificate
Multi-function building Planed in municiple reconstruction
Office building Planed in municiple reconstruction
Workshop B-1 Planed in municiple reconstruction
Workshop B-2 Planed in municiple reconstruction
Asset given for debt in Dalian Certificate not filed
Shenyang Fangda extension workshop Under procedures of property certificate
Shenyang Fangda dorm and workshop 2# Under procedures of property certificate
93
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Dinning hall and power station of
Under procedures of property certificate
Shenyang Fangda
Statements on fixed assets”
Note 1: The original value of fixed assets increased in the report period was RMB16,938,886.71, which was
mainly the RMB10,722,936.15 of investment property on the 18th floor of Fangda Technology Building
transferred to self-use.
Note 2: The original value of fixed assets decreased in the report period was RMB4,211,914.95, among
which: RMB1,341,283.01 of property sold by Fangda Decoration, and RMB1,769,945.58 of Room 802 of Fangda
Technology Building transferred to investment property.
18. Construction-in-process
(1) RMB
End of term Beginning of term
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Nanchang Fangda Technology
Garden Automatic PSD 17,753,591.56 17,753,591.56 3,597,740.17 3,597,740.17
Workshop
Dongguan Songshan Lake
Fangda Southern Technology 135,035,375.13 135,035,375.13 72,128,582.31 72,128,582.31
Garden
Paining line 3,899,880.18 3,899,880.18 2,557,696.6 2,557,696.6
Bacterium of spraying system 2,324,786.32 2,324,786.32 2,324,786.32 2,324,786.32
Gas project 671,772.65 671,772.65 669,225.64 669,225.64
Fangda Town reconstruction
659,115 659,115
project
Others 494,615.39 494,615.39 521,865.39 521,865.39
Total 160,839,136.23 0 160,839,136.23 81,799,896.43 0 81,799,896.43
94
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(2) Material change in construction-in-progress
In RMB
Including:
Transferred Accumulate Capitalizing
Beginning of Increased this Other Investment on interest
Projects Budget into fixed Progress of interest rate of interest Fund recourse End of term
term term decreases budget (%) capitalized
assets capitalized this period %
this term
Nanchang
Fangda
share issuing
Technology
and
Garden 19,360,000 3,597,740.17 14,155,851.39 91.70% 17,753,591.56
independent
Automatic
financed
PSD
Workshop
Dongguan
Songshan share issuing
Lake Fangda and 135,035,375.1
210,567,200 72,128,582.31 62,906,792.82 64.12%
Southern independent 3
Technology financed
Garden
152,788,966.6
Total 229,927,200 75,726,322.48 77,062,644.21 0 0 -- -- 0 0 -- --
9
Statements on change of construction-in-process:
95
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(3) Impairment provisions of construction-in-process
In RMB
Items Beginning of term Increased this term Decreased this term End of term Reason to provide
Total 0 0 0 0 --
(4) Progress of material construction-in-process
Items Progress Note
(5) Statement on construction-in-process
19. Project material
In RMB
Items Beginning of term Increased this term Decreased this term End of term
Total 0 0
Statement on project material:
20. Liquidation of fixed assets
In RMB
Items Openning book value Closing book value Reason of liquidation
Office and machinery equipment 24,597.9
Total 24,597.9 --
Progress of fixed assets turn to be liquidated for over one year:
96
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
21. Production biological assets
(1) On costs
[] Applicable; [V] Not applicable
(2) On fair value
[] Applicable; [V] Not applicable
22. Petrolum assets
In RMB
Balance of book value Balance of book value
Items Increased this term Decreased this term
at beginning of term at end of term
I. Total of original book
0 0 0 0
value
1. Rights on proved mine
field
2. Rights on unproved mine
field
3. Wells and facilities
II. Total of accumulative
0 0 0 0
depreciation
1. Rights on proved mine
field
2. Wells and facilities
III. Total of accumulative
impairment provision on 0 0 0 0
petrolum assets
1. Rights on proved mine
field
2. Rights on unproved mine
field
3. Wells and facilities
IV. Total of book value of
0 0
petrolum assets
1. Rights on proved mine
field
2. Rights on unproved mine
97
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
field
3. Wells and facilities
Statements on petrolum assets:
23. Intangible assets
(1) Profiles of intangible assets
In RMB
Balance of book value at Increased this Decreased this Balance of book value at
Items
beginning of term term term end of term
I. Total of original book value 138,877,554.27 92,530 0 138,970,084.27
Land using rights of Fangda Town (Ph. I,
8,543,250 8,543,250
Note 3)
Land using rights of Fangda Town (Ph. III,
4,783,050 4,783,050
Note 4)
Land using rights of Fangda Tech Garden
11,064,548.41 11,064,548.41
on Gaoxin Road Nanchang (Note 5)
Land using rights of Shenyang Fangda
42,038,791.23 42,038,791.23
(Note 6)
Dongguan land using rights (note 2) 40,041,465.75 40,041,465.75
Patent and classified tech 27,885,795.89 38,030 27,923,825.89
Computer software 4,520,652.99 54,500 4,575,152.99
II. Total of accumulative amortizing 28,277,599 2,659,969.08 0 30,937,568.08
Land using rights of Fangda Town (Ph. I,
4,046,999.12 72,715.68 4,119,714.8
Note 3)
Land using rights of Fangda Town (Ph. III,
1,426,943.25 47,830.5 1,474,773.75
Note 4)
Land using rights of Fangda Tech Garden
1,433,622.22 152,032.68 1,585,654.9
on Gaoxin Road Nanchang (Note 5)
Land using rights of Shenyang Fangda
3,426,350.1 420,417.9 3,846,768
(Note 6)
Dongguan land using rights (note 2) 867,565.14 400,414.68 1,267,979.82
Patent and classified tech 15,199,269.02 1,307,918.54 16,507,187.56
Computer software 1,876,850.15 258,639.1 2,135,489.25
III. Total of book net value of intangible
110,599,955.27 -2,567,439.08 0 108,032,516.19
assets
Land using rights of Fangda Town (Ph. I,
4,496,250.88 -72,715.68 4,423,535.2
Note 3)
Land using rights of Fangda Town (Ph. III,
3,356,106.75 -47,830.5 3,308,276.25
Note 4)
Land using rights of Fangda Tech Garden
9,630,926.19 -152,032.68 9,478,893.51
on Gaoxin Road Nanchang (Note 5)
Land using rights of Shenyang Fangda
38,612,441.13 -420,417.9 38,192,023.23
(Note 6)
Dongguan land using rights (note 2) 39,173,900.61 -400,414.68 38,773,485.93
Patent and classified tech 12,686,526.87 -1,269,888.54 11,416,638.33
Computer software 2,643,802.84 -204,139.1 2,439,663.74
IV. Total of impairment provisions 0 0 0 0
Land using rights of Fangda Town (Ph. I,
Note 3)
Land using rights of Fangda Town (Ph. III,
Note 4)
Land using rights of Fangda Tech Garden
on Gaoxin Road Nanchang (Note 5)
Land using rights of Shenyang Fangda
(Note 6)
Dongguan land using rights (note 2)
98
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Patent and classified tech
Computer software
Total of book value of intangible assets 110,599,955.27 -2,567,439.08 0 108,032,516.19
Land using rights of Fangda Town (Ph. I,
4,496,250.88 -72,715.68 4,423,535.2
Note 3)
Land using rights of Fangda Town (Ph. III,
3,356,106.75 -47,830.5 3,308,276.25
Note 4)
Land using rights of Fangda Tech Garden
9,630,926.19 -152,032.68 9,478,893.51
on Gaoxin Road Nanchang (Note 5)
Land using rights of Shenyang Fangda
38,612,441.13 -420,417.9 38,192,023.23
(Note 6)
Dongguan land using rights (note 2) 39,173,900.61 -400,414.68 38,773,485.93
Patent and classified tech 12,686,526.87 -1,269,888.54 11,416,638.33
Computer software 2,643,802.84 -204,139.1 2,439,663.74
RMB2,659,969.08 amortized this period.
(2) R&D expenses
In RMB
Decreased this term
Accounted into
Items Beginning of term Increased this term Recognized as End of term
current income
intangible asset
account
R&D expense 914,683.63 22,660 0 25,810 911,533.63
Total 914,683.63 22,660 0 25,810 911,533.63
R&D expenses of the current period accounted for 0.1% of the total coast of R&D.
Intangible asset formed by internal R&D of the period accounted for 10.07% of the total book value of intangible assets.
Statement on R&D projects, including single account over RMB1 million basing on evaluation results. Please provide the evaluation
body and basis of evaluation.
(3) Uncertificated intangible assets
24. Goodwill
In RMB
Impairment
Name of the companies or Decreased this
Beginning balance Increased this term Ending balance provision at
goodwill item term
end of term
Shenzhen Woke 8,197,817.29 8,197,817.29
Fangda Yide Co. 746,519.62 746,519.62
Total 8,944,336.91 0 0 8,197,817.29 746,519.62
99
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Statement of basis for impairment testing and provision of goodwill.
25. Long-term expenses to be amortized
In RMB
At beginning of Increased this Amortized this Reason of other
Items Other decrease At end of term
term term term decreasing
Epoxy Floor 1,396,350 46,839 85,716.17 1,357,472.83
Expenses for
improving of 1,203,845.3 3,000 153,388.18 1,053,457.12
rental fixed assets
Total 2,600,195.3 49,839 239,104.35 0 2,410,929.95 --
Statement on long-term amortizable expenses:
26. Deferred income tax asset and deferred income tax liabilities
(1) Deferred income tax assets and liabilities are not presented as net amount after neutralization
[V] Applicable [] Not applicable
Deferred income tax assets and liabilities already recognized
In RMB
Items End of term Beginning of term
Differed income tax assets:
Asset impairment provision 29,180,342.69 29,413,806.15
Openning expenses 0 5,766.4
Neutralizable losses 2,939,958.24 2,887,267.88
Anticipated liabilities 13,969.64 63,149.39
Reserved expenses 593,379.63 1,267,747.77
Subtotal 32,727,650.2 33,637,737.59
Differed income tax liabilities:
Evaluation of transactional financial instruments
34,147,632.07 32,148,137.16
and derivate financial instruments
Fluctuation of fair value of disposable financial
418,000 449,500
assets accounted into capital reserves
100
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Sub-total 34,565,632.07 32,597,637.16
Details of un-recognized deferred income tax assets
In RMB
Items End of term Beginning of term
Deductible provisional differences 48,205,160.97 28,784,639.04
Neutralizable losses 63,010,290.18 58,123,591.73
Total 111,215,451.15 86,908,230.77
Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year End of term Beginning of term Note
2012 12,498,387.22 10,378,557.33
2013 14,739,253.59 10,026,221.51
2014 9,122,762.84 7,864,870.78
2015 199,887.32 7,695,652.54
2016 22,097,940.46 22,158,289.57
2017 4,352,058.75 0
Total 63,010,290.18 58,123,591.73 --
Details of taxable differences and deductible differences
In RMB
Amount of temporary differences
Items
At end of term At beginning of term
Differences in taxable items
Adjustment of investment property fair value 137,817,960.04 129,689,276
Adjustment of sellable financial asset fair value 1,672,000 1,798,000
Sub-total 139,489,960.04 131,487,276
Neutralizable different items
Asset impairment provision 165,732,785.36 170,659,472.15
Openning expenses 0 38,442.67
Neutralizable losses 11,759,832.93 11,549,071.51
Anticipated liabilities 93,130.9 420,995.96
Reserved expenses 4,446,037.82 7,321,842.97
101
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Total 182,031,787.01 189,989,825.26
Sub-total 182,031,787.01 189,989,825.26
(2) Deferred income tax assets and liabilities are presented as net amount after neutralization
[] Applicable; [V] Not applicable
Statement on deferred income tax assets and liabilities:
27. Detail of asset impairment provision
In RMB
Balance of book Decreased this term Balance of book
Items value at beginning Increased this term value at end of
Written back Transferred
of term term
I. Bad debt provision 157,096,465.41 3,696,109.31 4,988,442.6 10.09 155,804,122.03
II. Inventory impairment
3,971,084.67 4,322,567.44 0 142,544.39 8,151,107.72
provision
III. Disposable financial asset
impairment provision
IV. Investment equity hold till
expiring impairment provision
V. Long-term equity
investment impairment 0 0
provision
VI. Property investment
impairment provision
VII. Fixed asset impairment
2,251,026.09 14,847,286.3 0 5,081.2 17,093,231.19
provision
VIII. Project material
impairment provision
IX. Construction in process
0 0 0
impairment provision
X. Production biological
material asset impairment
provision
Incl. Mature production
biological material asset
impairment provision
XI. Gas & oil asset
0 0 0
impairment provision
XII. Intangible asset
0 0 0
impairment provision
XIII. Goodwill impairment
746,519.62 746,519.62
provision
XIV. Other
Total 164,065,095.79 22,865,963.05 4,988,442.6 147,635.68 181,794,980.56
Statement on details of asset impairment:
28. Other non-current assets
In RMB
Items End of term Beginning of term
102
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Total
Statement on other non-recurring assets
29. Short-term loans
(1) Categories of short-term loans
In RMB
Items End of term Beginning of term
Loan by pledge
Pledged loan
Guarantee loan 255,000,000 177,000,000
Credit loan
Borrowings with security and guarantee 210,000,000 210,000,000
Loan from discount of notes 50,500,000
Total 515,500,000 387,000,000
Statement on categories of short-term loans.
(2) Short-term loans expired but not repaid
In RMB
Loan provided by Amount of loan Interest rate Usage of loan Reason of overdue Scheduled repaying date
Total 0 -- -- -- --
Repaid in post-balance-sheet period.
Statement on short-term loans, including due but extended. Please provide the extending conditions and extended expiration date.
30. Transactional financial liabilities
In RMB
Items Fair value at end of term Fair value at beginning of term
Transactional bonds issued
Financial liabilities accounted on fair value and
103
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
the fluctuations accounted into current gain/loss
account
Deductive financial liability
Other financial liabilities
Total
Statement on transactional financial liabilities
31. Notes payable
In RMB
Categories End of term Beginning of term
Commercial acceptance 6,952,679.29 7,373,068.26
Bank acceptance 60,077,484.94 31,684,990.21
Total 67,030,164.23 39,058,058.47
Amount due in next fiscal period is RMB67,030,164.23
Statement on notes payable:
The book balance of notes payable at end of period has increased by 71.62% over the beginning of year,
which was caused by increasing of clearance in term of accepted notes by Fangda Decoration in the report period.
32. Account payable
（1）
In RMB
Items End of term Beginning of term
Account payable 323,220,777.67 324,340,008.15
Total 323,220,777.67 324,340,008.15
(2) Account payable to shareholders holding 5% or over of the Company’s shares in the report period
[] Applicable; [V] Not applicable
Statement on payable accounts due for over one year.
None
104
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
33. Accounts received in advance
（1）
In RMB
Items End of term Beginning of term
Advances received 115,360,697.22 124,950,664.78
Total 115,360,697.22 124,950,664.78
(2) Prepayment collected from shareholders holding 5% or over of the Company’s shares in the report
period.
[] Applicable; [V] Not applicable
Statement on large amount prepayment received and due for over one year.
Client Amount Description Causation of not settled
Xi’an Metro Co., Ltd. 12,248,123.66 Advances for project works Not started
34. Wage payable
In RMB
Balance of book value at Balance of book value at
Items Increased this term Decreased this term
beginning of term end of term
I. Wage, bonus,
17,481,799.52 46,932,777.74 56,015,958.45 8,398,618.81
allowances
II. Employees’
1,004,568.09 1,004,568.09
welfare
III. Social security 52.5 3,350,509.48 3,350,561.98 0
Medical insurance 12.6 1,072,582.72 1,072,595.32
Basic pension 36.75 1,973,370.91 1,973,407.66
Unemployment
0.52 116,243.62 116,244.14
insurance
Labor injury
1.58 131,268.23 131,269.81
insurance
Breeding insurance 1.05 57,044 57,045.05
IV. Housing fund 1,412,508.8 1,412,508.8
V. Dismissing
welfare
105
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
VI. Others 2,951,114 91,728.56 211,198.39 2,831,644.17
Trade union and
2,918,371.32 91,328.56 210,798.39 2,798,901.49
education allowance
Compensations for
disengagement other
32,742.68 32,742.68
than dismissing
policy
Others 400 400
Total 20,432,966.02 52,792,092.67 61,994,795.71 11,230,262.98
Illegal overdue of wages in the amount was RMB0.
Trade Union fund and eduction fund was RMB2,798,901.49, non-monetary welfare was RMB0, and compensation for dismissing of
employment was RMB32,742.68.
Arrangement of distributing the wages payable:
35. Tax payable
In RMB
Items End of term Beginning of term
VAT -2,163,956.13 1,895,422.63
Consumption tax 0 0
Business tax 22,135,713.59 18,030,603.08
Enterprise income tax 4,620,561.66 15,046,043.63
Personal income tax 707,401.42 440,103
City maintenance and construction tax 1,863,749.05 2,677,051.21
Land using tax 193,884.3 989,909.39
Property tax 703,221.58 367,346.01
Education surtax 965,878.71 1,245,684.67
Local education surcharges 26,688.17 198,932.54
Other taxes 97,199.15 111,169.71
Total 29,150,341.5 41,002,265.87
Statement on tax payable. Please provide the calculating processes when taxable income is balanced between branch companies or
factories as approved by the Tax Bureau.
36. Tax disbursable
In RMB
106
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Items End of term Beginning of term
Long-term loan interest with instalments
Interest of company bond
Short-term borrowing interests payable 699,982 780,979.73
Total 699,982 780,979.73
Statement on interest payable:
37. Dividend payable
In RMB
Name of the companies End of term Beginning of term Reason of overdue for one year
Total --
Statement on dividend payable
38. Other account payable.
（1）
In RMB
Items End of term Beginning of term
Guangzhou Nanjian Construction Co., Ltd. 8,289,683.5 8,289,683.5
Guangzhou Nanjian Construction Co., Ltd.
3,000,000 3,000,000
Dongguan Branch
Ningbo Lailai Energy-saving Doors and Windows
2,060,000 2,060,000
Co., Ltd.
Jiangxi Changxing Logistics Co., Ltd. 1,578,676.99 1,520,779.37
Zhejiang Mingbang Decoration Engineering Co.,
1,234,078.47 0
Ltd.
Jiangsu Tianyi Garment Co., Ltd. 0 1,500,000
Others 21,705,441.18 20,412,744.51
Total 37,867,880.14 36,783,207.38
107
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(2) Other account payable due to shareholders with 5% or over of the Company’s shares in the report
period
[] Applicable; [V] Not applicable
(3) Statement on large amount other payable accounts due for over one year
Items Balance of book value Description Reason of overdue
at end of term
Ningbo Lailai Energy-saving Doors and 2,060,000.00 Project deposit construction in
Windows Co., Ltd. process
Shenzhen Yachang Color Printing Co., 950,000.00 Rental deposite In contract period
Ltd.
Total 3,010,000.00
(4) Statement on large amount other payable accounts
(2) Other payables with large amount in detail:
Items Balance of book Description
value at end of term
Guangzhou Nanjian Construction Co., Ltd. 8,289,683.50 Contract security
Guangzhou Nanjian Construction Co., Ltd. 3,000,000.00 Contract security
Dongguan Branch
Ningbo Lailai Energy-saving Doors and Windows 2,060,000.00 Project deposit
Co., Ltd.
Jiangxi Changxing Logistics Co., Ltd. 1,578,676.99 Freight
Zhejiang Mingbang Decoration Engineering Co., 1,234,078.47 Project deposit
Ltd.
Total 16,162,438.96
39. Anticipated liabilities
In RMB
Items Beginning of term Increased this term Decreased this term End of term
Providing of external
guarantees
Unsettled lawsuit
Quality warranty
108
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Reconstruction liabilities
Dismissing policy
Loss contract to be
executed
Others 288,000 194,869.1 93,130.9
Total 288,000 0 194,869.1 93,130.9
Statement on anticipated liabilities:
40. Non-current liabilities due in one year
（1）
In RMB
Items End of term Beginning of term
Long-term loans due in 1 year
Bond payable due in 1 year
Long-term payable due in 1 year
Total
(2) Long-term loans due in 1 year
Long-term loans due in 1 year
In RMB
Items End of term Beginning of term
Loan by pledge
Pledged loan
Guarantee loan
Credit loan
Total
Among the long-term loans due in 1 year, the loans overdue but extended is amounted to RMB.
Top 5 long-term loans due in 1 year
In RMB
End of term Beginning of term
Loan Commence Terminate Interest Amount of Amount of Amount of Amount of
Currency
provided by date date rate % foreign original foreign original
currency currency currency currency
109
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Total -- -- -- -- -- --
Overdue loans among the long-term borrowings due in one year:
In RMB
Annual interest Reason for Scheduled
Loan provided by Total Amount Date of mature Usage of loan
rate % overdue repaying date
Total -- -- -- -- --
Amoung repaid in post-balance-sheet day.
Statement on long-term loans due in 1 year:
(3) Bonds payable due in 1 year
In RMB
Interest Interest
Interest
Date of Issuing payable at Interest paid payable at Closing
Bond Face value Bond term occurred
issue amount beginning this period end of balance
this period
of period period
Statement on bond payable due in one year:
(4) Long-term payable account due in 1 year
In RMB
Loans from Term Initial amount Interest rate % Interest payable Closing balance Condition
Statement on long-term payable due in one year:
41. Other current liability
In RMB
Items Closing balance of book value Openning balance of book value
Total
Statement on other current liabilities
110
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
42. Long-term loans
(1) Categories of long-term loans
In RMB
Items End of term Beginning of term
Loan by pledge
Mortgage loan
Guarantee loan
Credit loan
Total
Statement on categories of long-term loans:
(2) Top 5 long-term loans
In RMB
End of term Beginning of term
Loan Commence Terminate Interest Amount of Amount of Amount of Amount of
Currency
provided by date date rate % foreign original foreign original
currency currency currency currency
Total -- -- -- -- -- 0 -- 0
Statement on long-term loans. For long-term loans overdue but extended for another period, please provide the conditions, principal,
interest rate, and repayment arrangement.
43. Bond payable
In RMB
Interest Interest
Interest
Date of Issuing payable at Interest paid payable at Closing
Bond Face value Bond term occurred
issue amount beginning this period end of balance
this period
of period period
Statement on bonds payable, including the condition and time of converting of the convertible bonds.
111
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
44. Long term payables
(1) Top 5 long-term payables
In RMB
Company Term Initial amount Interest rate % Interest payable Closing balance Condition
Shanghai monthly basis,
Zhendan Office ownership
Automatic 2 yrs 24,000 11,200 transferred at
Management Co., deliver and
Ltd. payment
(2) Details of finance leasing payments in long-term payables
In RMB
End of term Beginning of term
Company
Foreign Currency RMB Foreign Currency RMB
Shanghai Zhendan Office Automatic
11,200
Management Co., Ltd.
Total 0 11,200 0 0
Guarantee provided by the 3rd party for the leasing finance is amounted to RMB0.
Statement on long-term payables:
45. Special payables
In RMB
Beginning of Increased this Decreased this
Items End of term Remarks
term term term
Total --
Statement on special payable accounts:
46. Other non-current liabilities
In RMB
Items Closing balance of book Openning balance of book
112
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
value value
Photon crystal project
1,200,000 1,200,000
(Note 1)
Environment and energy-saving projects
500,000 500,000
(Note 2)
Graphic background production and extension and chip making
425,000 450,000
(Note 3)
Purchase of equipment for semi-conductor lighting technical
development project 600,000 650,000
(Note 4)
Fund for optical-electric product projects
390,000 420,000
(Note 5)
High Luminance low reduction direct plug LED industrial development
800,000 800,000
(Note 6)
Total 3,915,000 4,020,000
Statement on other non-current liabilities, including asset-related and income-related government subsidy and closing balances:
Note 1: According to the contract engaged between Shenzhen Technologies and Information Bureau and
Fangda Guoke Co. (深科信（2009）202号) in July 2009, the Bureau provided RMB1.2 million to Fangda Guoke to
support the development of “photon crystal production technologies”. As of end of this term, this project is under
development.
Note 2: According to the notice 沈新区委发（2009）52号 issued by Shenyang Hunnan New Zone
Administration Committee on August 26, 2009, the Committee provided RMB500 thousand to Shenyang Fangda
to support the energy-saving projects. As of June 30, 2012, this project was not through acceptance inspection yet.
Note 3: According to the notice 沈新区委发（2009）72号 issued by Shenyang Hunnan New Zone
Administration Committee on August 26, 2009, the Committee provided RMB500 thousand to Shenyang Fangda
to support the production technologies of graphic background and extension and chips projects. The project has
been completed and received. Intangible asset amortizing period is estimated according to the predicted usable life
by Shenyang Fangda. RMB25,000.00 of non-operational income was recognized in the year.
Note 4. According to document 深科信〔2005〕401号, Shenzhen Bureau of Finance and Fangda Guoke
entered the “Contract on using of technical development fund”. As of December 31, 2008, Fangda Guoke has
received the fund for purchasing of equipment in two payment amounted to RMB1 million. Fangda Guoke
recognized against the expected useful life of the equipment and amortizing of intangible assets. RMB50,000.00
recognized as non-operational income in the year.
Note 5. According to document 沈信产发〔2008〕27号 issued by Shenyang Information Industry Bureau
and Shenyang Bureau of Finance on July 17, 2008, Shenyang Fangda received RMB600 thousand of subsidy to
support the production technologies of graphic background and extension and chips projects. The project has
been completed and received. Intangible asset amortizing period is estimated according to the predicted usable life
by Shenyang Fangda. RMB30,000.00 of non-operational income was recognized in the year.
Note 6: According to the “Scientific and technological project contract of Shenyang High-tech Zone” engaged
between Shenyang High-tech Development Zone Administration Committee and Shanyang Fangda in November
2010, the Committee was about to provide finance of RMB800 thousand to Shenyang Fangda for purchasing of
113
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
equipment. No related equipment has been purchased as of June 30, 2012.
47. Capital Share
In RMB
Changed in the report period (+,-)
Beginning of
Issuing of new Transferred End of term
term Bonus shares Others Sub-total
shares from reserves
Total of capital
756,909,905 0 756,909,905
shares
Statement of change in capital shares. Name of CPA and number of verification report shall be provided if capital increasing or
decreasing occurred in the report period; as for shareholding limited companies incorporated for less than three years, only net asset
is required for the years prior to incorporation; for shareholding limited companies reformed from limited companies shall provide
the capital verification at incorporation.
48. Shares in stock
Statement on shares in stock
49. Special reserves
Statement on special reserves
50. Capital reserves
In RMB
Items Beginning of term Increased this term Decreased this term End of term
Capital premium (share capital
38,238,222.48 38,238,222.48
premium)
Other capital reserves 42,241,271.44 91,831.63 94,500 42,238,603.07
Total 80,479,493.92 91,831.63 94,500 80,476,825.55
Statement on capital reserves:
Other capital reserves increased by RMB91,831.63 which was caused by transferring of Room 802 Fangda
Building to investment property, and the fair value has exceeded the book value; decreased by RMB94,500.00,
which was decrease of fair value of sellable financial assets in possession.
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51. Surplus reserves
In RMB
Items Beginning of term Increased this term Decreased this term End of term
Statutory surplus reserves 24,676,077.16 24,676,077.16
Optional surplus reserves
Preserved fund
Enterprise development fund
Others
Total 24,676,077.16 0 0 24,676,077.16
Statement on surplus reserves. Please state the related resolutions of the Board on capitalizing of reserves, making up losses, and
dividends.
52. Providing of common risk provisions
Statement on common risk provisions
53. Retained profit
In RMB
At end of term At beginning of term
Percentage of Percentage of
Items
Amount drawing or Amount drawing or
allocation allocation
Adjustment on retained
211,777,968.57 -- 153,115,142.18 --
profit of previous year
Total of retained profit at
beginning of year adjusted
-- --
(+ for increase, - for
decrease)
Retained profit adjusted at
211,777,968.57 -- 153,115,142.18 --
beginning of year
Plus: Net profit attributable
to owners of the parent 12,643,297.4 -- 65,503,925.58 --
company
Less: Statutory surplus
6,841,099.19
reserves
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Optional surplus reserves
Common risk provisions
Common share dividend
payable
Common share dividend
transferred to capital share
Retained profit at the end of
224,421,265.97 -- 211,777,968.57 --
term
Details about adjustment of retained profit at beginning of year:
1) Retrospective adjustment due to adopting of the Enterprise Accounting Standard and related regulations, included the retained
profit by RMB0.
2) Variation of accounting policies, influenced the retained profit by RMB0.
3) Correction of material accounting errors, influenced the retained profit by RMB0.
4) Change of consolidation range caused by merger of entities under common control, influenced the retained profit by RMB0.
5) Other adjustment influenced the retained profit by RMB0.
Statement on retained profit: for companies issued their securities for the first time, if the accumulated profit before the issuing is
shared by the new and existing shareholders as approved by the shareholders’ meeting, shall be described particularly; if the
accumulated profit before the issuing is shared only by existing shareholders as approved by the shareholders’ meeting, the Company
shall provide the details of dividend payable to the existing shareholders as audited by CPA.
54. Operational revenue and costs
(1) Operation incomes and costs
In RMB
Items Occurred current term Occurred in previous term
Major business turnover 507,471,233.33 556,233,228.08
Other business income 21,818,364.47 22,921,165.6
Operation cost 418,086,030.44 460,275,267.38
(2) Business segments (on industries)
[V] Applicable [] Not applicable
In RMB
Occurred current term Occurred in previous term
Name of industry
Turnover Operation cost Turnover Operation cost
Metal production 471,976,293.23 379,891,380.74 485,234,819.9 388,995,725.08
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Railroad industry 33,746,387.12 26,730,948.12 63,530,580.66 53,584,619.99
Total 507,471,233.33 409,761,568.89 556,233,228.08 449,536,349.29
(3) Business segments (on products)
[V] Applicable [] Not applicable
In RMB
Occurred current term Occurred in previous term
Products or services
Turnover Operation cost Turnover Operation cost
Curtain wall and material 471,976,293.23 379,891,380.74 485,234,819.9 388,995,725.08
Rail transportation equipment 33,746,387.12 26,730,948.12 63,530,580.66 53,584,619.99
Total 507,471,233.33 409,761,568.89 556,233,228.08 449,536,349.29
(4) Business segments (on regions)
[V] Applicable [] Not applicable
In RMB
Occurred current term Occurred in previous term
Name of districts
Turnover Operation cost Turnover Operation cost
Domestic 493,071,807.85 399,220,838.46 492,995,212.2 408,525,736.36
Overseas 14,399,425.48 10,540,730.43 63,238,015.88 41,010,612.93
Total 507,471,233.33 409,761,568.89 556,233,228.08 449,536,349.29
(5) Revenue from top five customers
In RMB
Name of clients Major business turnover Percentage in total turnover of the Company %
No.1 44,623,229.82 8.43%
No.2 37,262,697.68 7.04%
No.3 33,351,561.36 6.3%
No.4 27,347,993.11 5.17%
No.5 27,313,748.33 5.16%
Total 169,899,230.3 32.1%
Statement on revenue.
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55. Income from contract projects
[] Applicable; [V] Not applicable
Statement on contract projects:
56. Business tax and surcharge
In RMB
Occurred in previous
Items Occurred current term Rate
term
Consumption tax
Business tax 6,663,166.07 6,816,196.08
City maintenance and construction
1,285,464.47 931,385.5
tax
Education surtax 560,548.1 471,297.96
Resource tax
Property tax 656,968.35 329,605.54
Land using tax 77,989.18 79,158.29
Others 506,861.55 152,581.94
Total 9,750,997.72 8,780,225.31 --
Statement on operation tax and surcharges:
57. Income from fair value fluctuation
In RMB
Source of income from fluctuation of fair value Occurred current term Occurred in previous term
Transactional financial assets
Incl. Gains from fluctuation of fair value of derivate
financial instruments
Trade off financial liabilities
Investment property measured at fair value 5,936,670.15 5,082,327.66
Others 0 0
Total 5,936,670.15 5,082,327.66
Statement on fluctuation of fair value:
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58. Investment income
(1) Details of investment gains
In RMB
Items Occurred current term Occurred in previous term
Long-term equity investment gains on cost basis
Long-term equity investment gains on equity basis
Investment gains from disposal of long-term equity investment
Investment gains in the period of holding transactional financial assets
Gains from investment held to mature in the period of holding
Investment gains in period of holding disposable financial assets
Investment gains from disposal of transactional financial assets
Investment gains from investment held to mature
Gains from sellable financial assets and similar
Others 15,342.47
Total 0 15,342.47
(2) Long-term equity investment gains on cost basis
In RMB
Occurred in previous
Company invested in Occurred current term Causation of change
term
Total --
(3) Long-term equity investment gains on equity basis
In RMB
Occurred in previous
Company invested in Occurred current term Causation of change
term
Total --
Statement on investment gains, please state whether or not there are material constrains on retrieving of investment gains.
59. Asset impairment loss
In RMB
119
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Items Occurred current term Occurred in previous term
I. Bad debt loss -1,292,333.29 -3,686,853.2
II. Inventory impairment loss 4,322,567.44
III. Disposable financial asset impairment
IV. Impairment loss from investment held till expiration
V. Impairment loss from long-term stock investment
VI. Property investment impairment loss
VII. Fixed asset impairment loss 14,847,286.3
VIII. Engineering goods impairment loss
IX. Construction-in-process impairment loss
X. Production goods impairment loss
XI. Gas and fuel asset impairment loss
XII. Intangible asset impairment loss
XIII. Goodwill impairment loss
XIV. Other
Total 17,877,520.45 -3,686,853.2
60. Non-business income
（1）
In RMB
Items Occurred current term Occurred in previous term
Total of gains from disposal of non-current assets 180 498.67
Incl. Gains from disposal of fixed assets 180 498.67
Gains from disposal of intangible assets
Gains from debt reorganization
Gains from exchange of non-monetary assets
Donation received
Government subsidy 703,700 63,800
Panalty income 106,413.94 78,830
Payable account not able to be paid 285,928.69 1,840.75
Others 2,058,771.87 5,316,831.22
Total 3,154,994.5 5,461,800.64
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(2) Details of government subsidies
In RMB
Occurred current Occurred in previous
Items Remarks
term term
2011 Award for Great Tax Contribution 100,000
Subsidy for inland freight 262,000
2011 on-job trainning subsidy 236,700
Subsidy for commercial and exhibitions 63,800
Graphic background production and extension and chip making
25,000
special fund
Purchase of equipment for semi-conductor lighting technical development
50,000
project
Fund for optical-electric product projects 30,000
Total 703,700 63,800 --
Statement on non-operational income
Note 1: Non-operational income decreased by 42.24% YoY, that was caused by receiving of debt interest of RMB4,863,766.62
received by Fangda Decoration from Dalian Yunshan Engineering in the same period of last year.
Note 2: Other details of non-operational income were:
(1) On June 5, 2012, the Company received RMB1,061,386.08 of debt interest from Shenzhen Shopping Mall Development Co., Ltd.
through the Middle Court of Shenzhen.
(2) Income from disposal of waste material of RMB844837.78.
61. Non-operational expenditures
In RMB
Items Occurred current term Occurred in previous term
Total of loss from disposal of non-current assets 134,421.19 247,866.36
Incl. Loss from disposal of fixed assets 134,421.19 247,866.36
Loss from disposal of intangible assets
Losses from debt restructuring
Loss from exchange of non-monetary assets
Donations 203,000
Others 285,884.02 139,007.59
Total 420,305.21 589,873.95
Statement on non-operational expenditures:
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62. Income tax expenses
In RMB
Items Occurred current term Occurred in previous term
Income tax calculated according to the law and regulations of
4,997,874.74 8,336,787.87
current term
Adjustment of differed income tax 2,909,582.3 2,227,649.27
Total 7,907,457.04 10,564,437.14
63. Calculation of basic earning per share and diluted earning per share
According to “Information Disclosure Rules No.9 – Calculation and disclosure of net earnings on asset and
earnings per share (中国证券监督管理委员会公告[2010]2号) and “Explanation Announcement of Information
Disclosure No. 1 – Non-recurring gain/loss (中国证券监督管理委员会公告[2008]43号), the earnings per share
is calculated as the following:
1. Calculation outcome
Profit of the report period Current term Same period of last term
Basic earnings Diluted Basic earnings Diluted
per share earnings per share earnings per
per share share
Net profit attributable to common share 0.02 0.02 0.06 0.06
holders of the Company (I)
Net profit attributable to common share 0.01 0.01 0.05 0.05
holders of the Company after deducting of
non-recurring gain/loss (II)
1. Formula of earnings per share
Items No. Current term Same period of
last term
Net profit attributable to common shareholders of the 1 12,643,297.40 46,205,772.95
Company
Non-recurring gain/loss attributable to the net profit of 2 6,662,512.15 7,709,204.65
common shareholders of the parent company after
deducting of income tax influences
Net profit attributable to common share holders of the 3=1-2 5,980,785.25 38,385,493.61
Company after deducting of non-recurring gain/loss
Total of shares at beginning of shares 4 756,909,905 504,606,604
Amount of shares increased by capitalizing of common 5 252,303,301
reserves or share dividend
Amount of shares increased by issuing of new shares or 6
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
transforming of debt to shares 6
6
The number of months from the next month of share 7
increasing by issuing of new shares or transferring of debts 7
to the end of report term 7
Amount of shares decreased by repurchasing of shares in 8
the report term
The number of months since the next month of share 9
decreasing to the end of report term
Amount of shares reduced 10
Number of months in the report term 11 12 12
Weighted average of common shares issued outside (II) 12=4+5+6×7 756,909,905 756,909,905
÷11.8×9÷11.10
Weighted average of common shares issued outside 13
adjusted for merger under common control (I)
Basic earning per share (I) 14=1÷12 0.02 0.06
Basic earning per share (II) 15=3÷12 0.01 0.05
Diluting potential common share interests recognized as 16 .
expenses
Income tax rate 17 25% 24%
Transformation fees 18
Amount of shares increased by transforming or exercising 19
of company bond, subscription certificate, or share option
Diluted earning per share (I) 20=[1+(16.18)× 0.02 0.06
(100%.17)]÷(13+1
9)
Diluted earning per share (II) 21=[3+(16.18) 0.01 0.05
×(100%.17)]÷(12+
19)
(1) Basic earnings per share
Basic earnings per share=P0÷S
S=S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0.Sk
P0 = Net profit attributable to the common shareholders or net profit attributable to the common shareholder
after deducting of non-recurring gain/loss. S = weighted average of common shares issued in the market S0 =
Total shares at the beginning of term S1 = increased shares due to capitalizing of common reserves or dividend
Si = shares increased due to placing of new shares or transferred from debt in the report term Sj = shares
decreased due to actions such as repurchasing in the report term SK = the amount of shares reduced M0 =
number of months of the report term Mi = accumulative number of months from the next month of share
increasing to the end of report term; Mj = accumulative number of months from the next month of share
decreasing to the end of report term.
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
(2) Diluted earning per share
Diluted earning per share=P1/（S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0–Sk+ weighted average of common shares
increased by means of subscription certificates, share future options, or convertible bonds）
P1 = net profit attributable to common shareholders of the Company, or net profit attributable to common
shareholders after deducting of non-recurring gain/loss, with considering the influences of diluting potential
common shares, and adjusted according to Enterprise Accounting Standard and related regulations. At calculating
of diluted earnings per share, the Company has considered the influences of the entire dilute potential common
shares, until the diluted earnings per share had reached the minimum value.
None of the amounts of common shares issued outside or potential common shares has greatly changed
during the balance sheet date to this report is approved, no potential common shares with potential dilution.
64. Other miscellaneous income
In RMB
Occurred current Occurred in previous
Items
term term
1. Amount of gain (loss) from sellable financial assets -126,000 -35,000
Less: Income tax influence of available-for-sale financial assets -31,500 -8,400
Net amount written into other gains and transferred into gain/loss in previous terms
Sub-total -94,500 -26,600
2. Share in other misc. income of the invested company on equity basis
Less: Income tax influence of shares in other gains of investees on equity basis
Net amount written into other gains and transferred into gain/loss in previous terms
Sub-total 0 0
3. Amount of gain (loss) from cash flow hedging instruments
Less: Income tax influence of cash flow hedge instruments
Net amount written into other gains and transferred into gain/loss in previous terms
Adjustment converted to initially recognized amount of hedging subject
Sub-total 0 0
4. Difference in translating of foreign currency accounts
Less: Net amount of disposing overseas business and transferred to current gain/loss
Sub-total
5. Others 91,831.63
Less: Income tax influence by other accounted into other misc. incomes 0
Net amount accounted into other misc. income and transferred into current gain/loss in
previous terms
Sub-total 91,831.63 0
Total -2,668.37 -26,600
Statement on other misc income
65. Notes to the cash flow statement
(1) Other cash inflow related to operation
In RMB
Items Amount
Interest income 1,985,705.7
Allowance income 598,700
Retrieving of bidding deposits 14,812,969.69
124
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Operational trade received 3,459,056.96
Others 10,247,767.03
Total 31,104,199.38
Statement on other cash inflow related to operation
(2) Other cash paid related to operation
In RMB
Items Amount
Sales expense 7,311,641.26
Administrative expense 14,316,715.66
Bidding deposit paid 29,064,427.58
Other trades 19,611,033.47
Total 70,303,817.97
Statement on other cash paid related to operation
(3) Other cash received related to investment
In RMB
Items Amount
Bidding and contract deposit related to construction projects 2,173,200
Others 7,444.64
Total 2,180,644.64
Statement on other cash received related to investment
(4) Other cash paid related to investment
In RMB
Items Amount
Bidding deposit paid related to construction projects 887,100
Total 887,100
Statement on other cash paid related to investment
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(5) Other cash received related to financing
In RMB
Items Amount
Total
Statement on other cash received related to financing
(6) Other cash paid related to financing
In RMB
Items Amount
Net amount of deposit for related notes paid 15,150,000
Total 15,150,000
Statement on other cash paid related to financing
66. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB
Supplementary Info. Amount of the Current Term Amount of the Previous Term
1. Net profit adjusted to cash flow of business operation -- --
Net profit 1,917,235.24 44,120,100.19
Plus: Asset impairment provision 17,877,520.45 -3,686,853.2
Fixed asset depreciation, gas and petrol depreciation,
9,464,901.99 6,107,321.46
production goods depreciation
Amortizing of intangible assets 2,659,969.08 2,586,954.46
Amortizing of long-term expenses 239,104.35 235,157
Loss from disposal of fixed assets, intangible assets, and
77,564.55 247,367.69
other long-term assets (“-“ for gains)
Loss from fixed asset discard (“-“ for gains) 56,676.64
Loss from fair value fluctuation (“-“ for gains) -5,936,670.15 -5,082,327.66
Financial expenses (“-“ for gains) 14,395,048.68 10,220,855.72
Investment losses (“-“ for gains) 0 -15,342.47
126
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Decrease of deferred income tax asset (“-“ for increase) 910,087.39 -44,529.97
Increase of deferred income tax liability (“-“ for decrease) 1,967,994.91 1,570,651.12
Decrease of inventory (“-“ for increase) 333,008.92 32,157,095.62
Decrease of operational receivable items (“-“ for increase) -62,840,068.07 -117,891,506.08
Increase of operational payable items (“-“ for decrease) -49,192,126.91 17,314,765.64
Others
Cash flow generated by business operation, net -68,069,752.93 -12,160,290.48
2. Major investment and financing operation not involving
-- --
with cash
Liabilities converted to capital
Convertible bond expire in 1 year
Fixed assets leased through financing
3. Net change of cash and cash equivalents -- --
Balance of cash at period end 285,781,351.89 415,709,113.55
Less: Initial balance of cash 415,709,113.55 468,878,715.15
Plus: Balance of cash equivalents at the period end
Less: Initial balance of cash equivalents
Net increasing of cash and cash equivalents -14,395,656.89 -53,169,601.6
(2) Information about acquisition or disposal of subsidiaries or businesses
In RMB
Supplementary Info. Occurred current term Occurred in previous term
I. Acquisition of subsidiaries and businesses -- --
1. Price to acquire subsidiaries and other businesses
2. Cash and cash equivalents paid to acquire subsidiaries or
businesses
Less: Cash and cash equivalents held by the
subsidiaries and other businesses
3. Net cash paid for acquiring of subsidiaries and other
businesses
4. Net asset of subsidiaries acquired 0 0
Current Assets
Non-current assets
Current Liabilities
Non-current liabilities
127
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
II. Disposal of subsidiaries and businesses -- --
1. Price to dispose subsidiaries and other businesses
2. Cash and cash equivalents received from disposal of
subsidiaries or businesses
Less: Cash and cash equivalents held by the
subsidiaries and other businesses
3. Net cash received for disposal of subsidiaries and other
businesses
4. Net asset of subsidiaries disposed 0 0
Current Assets
Non-current assets
Current Liabilities
Non-current liabilities
(3) Composition of cash and cash equivalents
单位： 元
Items End of term Beginning of term
I. Cash 285,781,351.89 300,177,008.78
Incl: Cash in stock 29,127.3 27,427.37
Bank savings could be used at any time 285,571,921.04 298,864,210.28
Other monetary capital could be used at any time 180,303.55 1,285,371.13
Usable money in Central Bank
Money saved in associated financial bodies
Money from associated financial bodies
II. Cash equivalents
Incl. Bond investment due in 3 months
III. Balance of cash and cash equivalents at end of term 285,781,351.89 300,177,008.78
Statement on supplementary information of cash flow statement
67. Notes to statement of change in owners’ equity
Please state the names and adjusted amount of the items of previous year, and retrospective adjustment on merger of entities under
common control.
128
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(VIII) Accounting treatment of capital securitilizing
1. Please state the main trade arrangement, accounting treatment, and bankrupcy isolating terms of capital
securitilizing.
2. Entities on which the Company has no control power but undertake the risks
In RMB
Total asset at end Total liability at Net asset at end Turnover of the Net profit of the
Name Note
of term end of term of term period current term
(IX) Related parties and transactions
1. Parent companies of the Company
In RMB
Share of Voting
Ultimate
Name of Legal the parent power of
Relationsh Ownership Business Registered holder of Organizati
the parent Reg. Add. representat co. in the the parent
ip type property capital the on code
co. ive Company company
Company
% %
Shenzhen
Banglin
Controllin
Technologi
g Ltd. Chen Industrial Xiong 72984005-
es Shenzhen 30,000,000 9.09% 9.09%
shareholde liability Jinwu investment Jianming 5
Developm
r
ent Co.,
Ltd.
Shenzhen Controllin
Shilihe g Ltd. Wang Industrial 72984450-
Shenzhen 19,780,992 2.36% 2.36% -
Investment shareholde liability Shengguo investment 7
Co., Ltd. r
Controllin
Shengjiu 59046683-
g Ltd. Xiong Industrial Xiong
Investment HK 10,600 2.82% 2.82% 000-10-11-
shareholde liability Jianming investment Jianming
Ltd. .2
r
Particulars about the parent company of the Company
Note 1: All of the investors of Shenzhen Banglin Technology Development Co., Ltd. – the holding
shareholder of the Company, are natural persons. Among them, Chairman Xiong Jianming is holding 85% of the
129
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
shares, and Mr. Xiong Xi – son of Mr. Xiong Jianming, is holding 15% of the shares. Mr. Xiong Jianming is the
substaintial controller of the Company who has been the chairman and president of the Company for latest five
years.
Note 2：Among the top 10 shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu
Investment Co., Ltd. are parties action-in-concert. Shenzhen Banglin Technology Development Co., Ltd. and
Shenzhen Shilihe Investment Co., Ltd. are related parties. No other action-in-concert or related parties among the
other holders of current shares.
2. Subsidiaries of the Company
RMB
Full name Ownership
Ownership Legal Business Registered Share Voting
of the of the Reg. Add. Organization code
type representative property capital proportion % power %
subsidiary subsidiary
Designing,
Fangda Controlled Ltd. Xiong manufacturing,
Shenzhen 310,000,000 100% 100% 19244418-2
Decoration subsidiaries liability Jianwei and installation
of curtain walls
Designing,
technical
developing,
installation,
and sales of
Fangda Controlled Ltd.
Shenzhen Lin Kebin PSD system; 105,000,000 100% 100% 75425429-3
Automatic subsidiaries liability
import &
export;
installation and
processing of
PSD.
Developing,
designing,
Fangda Controlled Ltd. Yang manufacturing
Shenzhen 26,543,680 100% 100% 61929454-0
Yide Co. subsidiaries liability Xiaozhuan of new type
composite
materials
Production and
selling of new
materials,
compound
materials,
curtain walls,
doors,
windows,
metal
structures,
Fangda
Controlled Ltd. Yang metal products,
New Nanchang 99,328,800 100% 100% 74852611-7
subsidiaries liability Xiaozhuan environment
Material
protection
products,
metallurgy
equipment,
machinery,
aluminum
products, heat
radiation
materials,
macromolecule
130
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
materials.
Desgining,
manufacturing,
sales and
installation of
Fangda Controlled Ltd. Yang
Nanchang aluminum 20,000,000 100% 100% 15830664-0
Aluminium subsidiaries liability Xiaozhuan
sections for
curtain walls,
doors, and
windows.
Controlled Ltd.
HK Junjia HK Investment 10,600 100% 100% 3007554-2000-04-10-4
subsidiaries liability
Manufacturing
of
semiconductor
lighting
material and
chips; lighting
source
encapsulation;
developing,
manufacturing,
technical
consulting of
semiconductor
lighting
Shenyang Controlled Ltd. Wang
Shenyang products; 200,000,000 64.58% 64.58% 66254891-3
Fangda subsidiaries liability Shengguo
developing,
designing,
manufacturing,
engineering,
installation and
trading of
semiconductor
lighting
system;
materials and
products
related to
semi-conductor
lighting
Developing,
designing and
sales of new
construction
material;
developing,
designing,
installation and
trading of
Dongguan
curtain walls,
New Controlled Ltd. Xiong
Dongguan PSD systems, 272,800,000 100% 100% 56457096-5
Material subsidiaries liability Jianwei
LED products,
Co., Ltd.
metal roof
products, and
solar-energy
products;
interior
decoration;
water and
power system
installation
Developing of
hardware and
Kexunda Shareholding Ltd.
Shenzhen Lin Kebin software, 1,000,000 100% 100% 58409491-9
Co. company liability
system
assembling,
131
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
technical
consulting
R&D, design,
manufacturing,
sales,
installation,
technical
services of new
construction
material,
curtain wall,
PSD, LED
products, metal
roof, PV
structure, solar
energy
products,
Chengdu
lighting
New Controlled Ltd. Xiong
Chengdu system; 20,000,000 100% 100% 59024979-6
Material subsidiaries liability Jianwei
interior and
Co.
exterior
decoration,
power supply
installation;
curtain wall
engineering;
labor services;
goods and
technology
import and
export;
workshop
leasing; and
machinery
leasing.
132
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3. Joint ventures and affiliates
In RMB
Voting
Legal Shares held Total asset Total Total net Total of Net profit of
Name of the Ownership Business Registered power of the Relationshi Organizatio
Reg. Add. representati by the at end of liability at asset at end turnover at the current
Companies type property capital Company in p n code
ve Company % term end of term of term current term term
the entity %
I. Joint
-- -- -- -- -- -- -- -- -- -- -- -- -- --
ventures
II. Affiliates -- -- -- -- -- -- -- -- -- -- -- -- -- --
133
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
4. Other related parties
Name of the related parties Relation with the Company Organization code
Statement on other related parties
5. Related Transactions
(1) Purchasing of goods and services
In RMB
Occurred current term Occurred in previous term
Pricing and Portion in Portion in
Subjects of the related
Related parties decision making similar similar
transactions Amount Amount
process transactio transactio
ns (%) ns (%)
Sales of goods and services
In RMB
Occurred current term Occurred in previous term
Pricing and Portion in Portion in
Subjects of the related
Related parties decision making similar similar
transactions Amount Amount
process transactio transactio
ns (%) ns (%)
(2) Related trusteeship or contracting
Related trusteeship or contracting in which the Company is the undertaker
In RMB
Asset Amount of Nature of Gains from Influence of
Name of the Name of the situation of the asset to the asset to Terminating Pricing the deal in the gains on
Start date
employer undertaker the be be date basis report the
undertaker undertaken undertaken period Company
Related trusteeship or outsourcing in which the Company is the employer
In RMB
Name of the Name of the Asset Amount of Nature of Start date End date Pricing Amount of Influence of
134
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
employer undertaker situation of the asset to the entrust basis payment the payment
the be entrusted recognized on the
employer Company
Statement on the trusteeship and contracting:
(3) Related leasing
The Company is the lender
In RMB
Rental Influence of
Category of Description Amount of
Name of the Name of the Starting Pricing recognized the rental
asset for of the asset to be Stop date
owner tenant date basis in the on the
rent property leased
period Company
The Company is the undertaker
In RMB
Rental Influence of
Category of Description Amount of
Name of the Name of the Starting Pricing recognized the rental
asset for of the asset to be Stop date
owner tenant date basis in the on the
rent property leased
period Company
Statement on related leasing
(4) Related guarantees
In RMB
The beneficiary
Gurantor Amount guaranteed Start date Due date Completed or not
party
Fangda Decoration The Company 50,000,000 July 11 2011 July 10, 2012 No
Fangda Automatic The Company 50,000,000 July 11 2011 July 10, 2012 No
Fangda New
The Company 50,000,000 July 11 2011 July 10, 2012 No
Material
The Company Fangda Automatic 30,000,000 June 13, 2012 June 13, 2013 No
The Company Fangda Decoration 40,000,000 June 18, 2012 June 18, 2013 No
The Company Fangda Decoration 100,000,000 June 29, 2012 June 28, 2012 No
The Company Fangda Decoration 20,000,000 August 3, 2011 August 2, 2012 No
135
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Fangda New
The Company 15,000,000 June 20, 2012 June 20, 2013 No
Material
Fangda New
The Company 15,000,000 June 25, 2012 June 25, 2013 No
Material
Fangda New
The Company 27,000,000 Sept 30, 2011 Sept. 30, 2012 No
Material
Fangda New
The Company 8,000,000 May 22, 2012 Sept 30, 2013 No
Material
Statement on related guarantees
Note: The above are associated guarantees involved in bank loans.
(5) Capital borrowing with related parties
In RMB
Related parties Amount of demolition Start date Expired on Remarks
Borrow in
Lend out
(6) Asset transferring and debt reconstruction with related parties
In RMB
Occurred current term Occurred in previous term
Pricing and Portion in Portion in
Type of Subjects of the
Related parties decision making similar similar
trade related transactions Amount Amount
process transactio transactio
ns (%) ns (%)
(7) Other related transactions
6. Receivable and payables due with related parties
Account receivable due from related parties
In RMB
Projects Related parties Amount at end of term Initial ammount
136
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Account payable to related parties
In RMB
Projects Related parties Amount at end of term Initial ammount
(X) Share payment
1. Overall situation of share payment
Total of equity instruments issued by the
Company in the report period
Total of equity instruments excercised in the
period
Total of equity instruments invalidated in the
period
Price range of share options issued to outside
and remained term of the contract at end of
period
Price range of other equity instruments issued to
outside and remained term of the contract at end
of period
Statement on share payment
2. Share payment settled in term of equity
In RMB
Recognition of fair value of equity instrument at date of grant
Recognition of best estimation on exercisable equity instruments
Cause of material difference between estimation basis of current
period and previous period
Accumulated amount of share payment on equity basis in capital
reserves
Total of expenses recognized for share payment on equity basis
Statement on share payment on equity basis
137
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3. Share payment settled by cash
In RMB
Recognition of fair value of liabilities calculated upon shares or
other equity instruments which are undertaken by the Company
Accumulative liabilities generated by share payment settled by cash
in the liabilities
Total expenses recognized on share payment settled by cash
Statement on share payment settled by cash.
4. Service paid by shares
In RMB
Total of employees’ services paid by shares
Total of other services paid by shares
5. Revising and termination of share payment
(X) Contingent Issues
1. Contingent liabilities formed by material lawsuit or arbitration, and their influences on the financial
position
1. Contingent liabilities formed by material lawsuit or arbitration, and their influences on the financial position
Plaintiff The defender Case description The court Target Progress
amount
Wang Fangda Project dispute The 1st Middle Court RMB17.07 Trial completed
Weihong Decoration of Chongqing mil and
interests
Note: In 2010, Wang Weihong sue to Chongqing Middle Court against Fangda Decoration – one of the
Company’s subsidiaries, claiming for RMB17.07 million project payment and interests. While Fangda Decoration
claimed RMB18.1189 million of project payment and related loss. At present the trial process has been completed,
but the debate was not started. And the bank deposit of RMB12 million of Fangda Decoration was frozen by the
court.
2. Major lawsuits settled but not executed completely
(1) On November 24, 2004, Shanxi Taiyuan Middle Court issued the Civil Judgment （2004）并民初字第 322
号 that Shanxi No.2 Construction Co., Ltd. and Shanxi Taiyuan Police Station should make the payment of
RMB11,506,930.98 to Fangda Decoration in two disbursement. As of December 31, 2011, Fangda Decoration has
138
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
retrieved RMB5,272,450.00, and the rest was not retrieved yet.
(3) On January 2, 2003, Guangzhou Middle Court issued the Civil Settlement Letter （2002）穗中法民三初
字第 00596 号 requiring Guangzhou Yi’an Plaza Property Development Co., Ltd. to pay RMB5,621,329.63 to
Fangda Decoration in 15 days. As of December 31, 2011, Fangda Decoration has received RMB1,950,000.00, and
the rest of payment has not been received yet.
2. Contingent liabilities formed by providing of guarantee to other companies’ debts and their influences on financial situation
As of June 30, 2012, the external guarantee was provided to subsidiaries of the Company. For details please see
Note VII (IX) – Related transactions.
Other contingent liabilities and their influences:
(XII) Commitment Issues
1. Major commitment issues
1. Details of guarantees provided between the Company and its subsidiaries for bank credits are:
(1) Details of guarantees provided to subsidiaries for bank credit up to June 30, 2012:
Name of companies Amount Note
Fangda New Material 35,000,000.00 Export sellers’ credit. Actual situation of guarantee on
loans see Note VI (II)
58,000,000.00 Integrated credit of RMB58 million, including current asset
loan of RMB30 million, accepted notes of RMB20 million,
and guarantee letter of RMB8 million. Actual situation of
guarantee on loans see Note VI (II)
Fangda Automatic 250,000,000.00
Fangda Automatic 60,000,000.00 Actual situation of guarantee on loans see Note VI (II)
Fangda Automatic 80,000,000.00
Fangda Decoration 300,000,000.00
120,000,000.00
150,000,000.00
Fangda Decoration 16,518,674.25 Was the guarantee provide for guarantee letter by
Fangda Automatic Fangda Decoration and Fangda Automatic. This
amount is the part used but not due in last year.
Total 1,069,518,674.25
(2) As of June 30, 2012, the guarantees provided by the subsidiaries to the Company for bank credits:
Name of companies Amount Note
Fangda Decoration 50,000,000.00 Actual situations are demonstrated
Fangda Automatic 50,000,000.00 in Note VI (II)
139
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Fangda New Material 50,000,000.00
Fangda Decoration and Fangda Automatic 150,000,000.00
Total 300,000,000.00
2. Fulfilling of commitments made in previous periods
Commitments made by the Company in previous terms were exercised normally along with repaying of
loans by the receiver of guarantees.
No major post-balance-sheet issues to be disclosed other than the above as of the date of this report.
(XIII) Post-balance-sheet events
1. Statement on material post-balance-sheet events
In RMB
Influence on the financial
Reason for not able to estimate
Items Contents position and business
the influence
performance
2. Statement on profit distribution in post balance sheet period
In RMB
Proposed profit or dividend
Approved and announced profit or dividend
3. Statement on other issues in post balance sheet period
(XIV) Statement on other material events
1. Non-monetary asset exchange
2. Debt reconstruction
3. Enterprise merger
140
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
4. Rental
1. Leases
As of June 30, 2012, the properties leased are:
Category of property for rent Closing balance of book value Openning balance of book value
Investment real estates 274,741,613.47 277,705,949.35
Total 274,741,613.47 277,705,949.35
5. Financial instruments convertible to shares issued to outside
6. Main contents of annual rewarding plan and material changes
7. Other material events to be disclosed
(XV) Notes to Financial Statements of the Parent Company
1. Account receivable
(1) Account receivable
In RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Categories Propo
Proporti Proporti Proporti
Amount rtion Amount Amount Amount
on % on % on %
%
Receivables with major
individual amount and bad
0 0 0 0
debt provision provided
individually
Receivables provided bad debt provision in groups
Receivable accounts out
8,602,510.09 100% 3,082,722.04 35.84% 8,602,510.09 100% 2,998,948.29 34.86%
of the consolidation range
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Sub-total of group 8,602,510.09 100% 3,082,722.04 35.84% 8,602,510.09 100% 2,998,948.29 34.86%
Account receivable with
minor individual amount
0 0 0 0
but bad debt provision is
provided
Total 8,602,510.09 -- 3,082,722.04 -- 8,602,510.09 -- 2,998,948.29 --
Remarks on categories of receivable accounts:
The Company recognizes project receivables over RMB8 million (included) as 搃ndividual receivable with large amountwhile
recognizes product receivables over RMB2 million (included) as 搃ndividual receivable with large amount
Receivable accounts with large amount individually and bad debt provisions were provided
[] Applicable; [V] Not applicable
Receivable accounts on which bad debt provisions are provided on age analyze basis in the portfolio
[V] Applicable [] Not applicable
In RMB
End of term Beginning of term
Book balance Book balance
Age
Proporti Bad debt provision Proporti Bad debt provision
Amount Amount
on % on %
within 1 yr
In which: -- -- -- -- -- --
637,549.76 7.41% 19,126.49 1,834,317.56 21.32% 55,029.53
Subtotal of
637,549.76 7.41% 19,126.49 1,834,317.56 21.32% 55,029.53
within 1 year
1-2 years 2,297,211.55 26.7% 229,721.16 1,100,443.75 12.79% 110,044.38
2-3 years 0 0% 0 0 0% 0
Over 3 yrs 5,667,748.78 65.88% 2,833,874.39 5,667,748.78 65.89% 2,833,874.38
3-4 years 5,667,748.78 65.88% 2,833,874.39 5,667,748.78 65.88% 2,833,874.39
4-5 years
over 5 yrs
Total 8,602,510.09 -- 3,082,722.04 8,602,510.09 -- 2,998,948.29
Receivable accounts on which bad debt provisions are provided on percentage analyze basis in a portfolio
[] Applicable; [V] Not applicable
Receivable accounts on which bad debt provisions are provided by other ways in the portfolio
[] Applicable; [V] Not applicable
Receivable accounts with minor amount but on which bad debt provisions are provided individually at end of period
142
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
[] Applicable; [V] Not applicable
(2) Receivable accounts written back or retrieved in the report period
In RMB
Bad debt provision
Description of the receivable Reason to write back Basis of original bad Amount written back or
provided before writing
accounts or retrieve debt provision retrieved
back or retrieving
Total -- -- --
Receivable accounts with large amount, or minor amount but on which bad debt provisions are provided individually at end of period
Description of the
Book balance Amount of bad debt Providing rate (%) Reason
receivable accounts
Total -- --
Remarks on receivable accounts with minor single amount but with greater risks after combining with accounts with similar risks:
(3) Receivable accounts actually written off in the report period
In RMB
Name of the Property of the Reason of writing Occurred under
Date of written off Amount written off
companies receivable account off related relationship
Total -- -- 0 -- --
Statement on writing off of receivable accounts.
(4) Particulars about the receivable accounts due from shareholders with 5% or over of the Company’s
shares
[] Applicable; [V] Not applicable
(5) Nature or description of other receivable accounts with large amount
(6) Top 5 receivable accounts
In RMB
143
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Relation with the Portion in total
Name of the companies Amount Ages
Company receivables
Guangzhou Metro
Client 1,196,767.8 within 1 yr 13.91%
Company
Guangzhou Metro
Client 1,100,443.75 1.2 years 12.79%
Company
Guangzhou Metro
Client 5,667,748.78 Over 3 yrs 65.88%
Company
Shenzhen Taishan Online
Lessee 203,736.16 within 1 yr 2.37%
Tech Co. Ltd.
Shenzhen Yiliruiguang
Technology Lessee 92,898 within 1 yr 1.08%
Development Co., Ltd.
Total -- 8,398,007.17 -- 97.62%
(7) Account receivable from related parties
In RMB
Name of the companies Relation with the Company Amount Portion in total receivables
Total -- 0 0%
（8）
Amount of receivable transferred but not satisfying the conditions of termination recognition is RMB.
(9) If securitilizing performed on target asset with purpose of receivable account, please brief the related
arrangements
2. Other account receivable.
(1) Other receivable accounts
In RMB
End of term Beginning of term
Categories
Book balance Bad debt provision Book balance Bad debt provision
144
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
Propo Propo Propo Propo
Amount rtion Amount rtion Amount rtion Amount rtion
% % % %
Other receivables with major
individual amount and bad
0 0 0 0
debt provision provided
individually
Other receivables provided bad debt provision in groups
Receivables beyond 23.39
2,480,177.91 1.03% 580,007.29 1,996,058.81 0.75% 540,923.81 27.1%
consolidation range %
Receivable accounts within 98.94 99.22
238,866,760.75 263,714,477.63
consolidation range % %
99.97 99.97
Sub-total of group 241,346,938.66 580,007.29 0.24% 265,710,536.44 540,923.81 0.2%
% %
Other account receivable
with minor individual
77,046 0.03% 77,046 100% 77,046 0.03% 77,046 100%
amount but bad debt
provision is provided
Total 241,423,984.66 -- 657,053.29 -- 265,787,582.44 -- 617,969.81 --
Statement on categories of other receivable accounts:
Other receivable accounts over 1 million (included) individually are accounted as “other receivable account with large amount”.
Other receivable accounts with large amount and were provided bad debt provisions individually at end of period.
[] Applicable; [V] Not applicable
Other receivable accounts in the portfolio on which bad debt provisions were provided on age analyze basis
[V] Applicable [] Not applicable
In RMB
End of term Beginning of term
Book balance Book balance
Age
Proporti Bad debt provision Proporti Bad debt provision
Amount Amount
on % on %
within 1 yr
In which: -- -- -- -- -- --
1,206,374.37 0.5% 36,191.23 928,255.27 0.35% 27,847.66
Subtotal of
1,206,374.37 0.5% 36,191.23 928,255.27 0.35% 27,847.66
within 1 year
1-2 years 206,000 0.09% 20,600 50,699.54 0.02% 5,069.95
2-3 years 53,428.54 0.02% 16,028.56 2,729 0% 818.7
145
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Over 3 yrs 1,014,375 0.42% 507,187.5 1,014,375 0.38% 507,187.5
3-4 years 0 0% 0 0 0% 0
4-5 years 4,000 0.16% 2,000 6,000 0.3% 3,000
over 5 yrs 1,010,375 40.74% 505,187.5 1,008,375 50.52% 504,187.5
Total 2,480,177.91 -- 580,007.29 1,996,058.81 -- 540,923.81
Other receivable accounts in the portfolio on which bad debt provisions were provided on percentage basis
[] Applicable; [V] Not applicable
Other receivable accounts in the portfolio on which bad debt provisions were provided on other basis
[] Applicable; [V] Not applicable
Other account receivable with minor amount but bad debt provision provided individually:
[V] Applicable [] Not applicable
In RMB
Description of other
Book balance Bad debt provision Rate Reason to provide
receivables
Overdue for a long time
Others 77,046 77,046 100%
and unretrievable
Total 77,046 77,046 100% --
(2) Other receivable accounts written back or retrieved in the report period
In RMB
Bad debt provision
Description of other Reason to write back Basis of original bad Amount written back or
provided before writing
receivables or retrieve debt provision retrieved
back or retrieving
Total -- -- --
Receivable accounts with large amount, or minor amount but on which bad debt provisions are tested and provided individually at
end of period
Description of the
Book balance Amount of bad debt Providing rate (%) Reason
receivable accounts
Total 77,046 77,046 -- --
Statement on other account receivable with minor amount but with greater risks when combined with other receivable accounts with
similar natures.
(3) Other receivable accounts actually written off in the report period
In RMB
146
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Name of the Reason of writing Occurred under related
Property of account Date of written off Amount written off
companies off relationship
Total -- -- 0 -- --
Statements on writing off of other receivable accounts.
(4) Particulars about the other receivable accounts due from shareholders with 5% or over of the
Company’s shares in the report period
[] Applicable; [V] Not applicable
(5) Natures or contents of other receivable accounts with large amount
(6) Top 5 debtors of other receivable accounts
In RMB
Relation with the Portion in total other
Name of the companies Amount Ages
Company receivables (%)
Fangda Decoration Current account 166,781,472.71 within 1 yr 69.08%
Dongguan New Material
Current account 20,015,738.08 within 1 yr 8.29%
Co., Ltd.
Fangda New Material Current account 14,562,358.96 within 1 yr 6.03%
HK Junjia Current account 11,582.78 within 1 yr 0%
HK Junjia Current account 49,352.88 1.2 years 0%
HK Junjia Current account 30,325,845.43 2.3 years 12.59%
Total -- 238,653,122.42 -- 98.85%
(7) Other accounts receivable from related parties
In RMB
Portion in total other receivables
Name of the companies Relation with the Company Amount
(%)
Total -- 238,866,760.75 98.94%
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China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
（8）
Amount of other receivables transferred but not satisfying the conditions of termination recognition is RMB.
(9) If securitilizing performed on target asset with purpose of other receivable account, please brief the
related arrangements
3. Long-term equity investment
In RMB
Statement
on
difference Impairme Cash
Percentag Voting
Company s between Impairme nt dividend
Calculatin Initial Openning Changed Closing e of share power in
invested the nt provision of the
g basis costs balance by balance in the the
in sharehold provision provided current
firm % firm %
ing and this term term
voting
rights
Fangda
305,000,0 305,000,0 305,000,0
Decoratio Cost basis 98.39% 98.39%
00 00 00
n
Fangda
19,800,00 19,800,00
Aluminiu Cost basis 99% 99%
0 0
m
Fangda 19,907,76 19,907,76
Cost basis 75% 75%
Yide Co. 0 0
HK Junjia Cost basis 10,600 100% 100% 10,600
Fangda
170,385,0 170,385,0 170,385,0
Automati Cost basis 94.08% 94.08%
71.73 71.73 71.73
c
Fangda
74,496,60 74,496,60 74,496,60
New Cost basis 75% 75%
0 0 0
Material
Shenyang 109,560,0 108,852,0 108,852,0
Cost basis 64.58% 64.58%
Fangda 00 73.85 73.85
Kexunda
Cost basis 1,000,000 1,000,000 1,000,000 100% 100%
Co.
Total -- 700,160,0 659,733,7 0 659,733,7 -- -- -- 39,718,36 0 0
148
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31.73 45.58 45.58 0
Statement on long-term equity investment
4. Operational revenue and costs
(1) Operation incomes and costs
In RMB
Items Occurred current term Occurred in previous term
Major business turnover 0 1,022,878.46
Other business income 22,293,459.72 19,027,047.62
Operation cost 4,730,478.42 5,151,318.51
Total
(2) Business segments (on industries)
[V] Applicable [] Not applicable
In RMB
Occurred current term Occurred in previous term
Name of industry
Turnover Operation cost Turnover Operation cost
Railroad industry 0 0 1,022,878.46 671,466.39
Total 0 0 1,022,878.46 671,466.39
(3) Business segments (on products)
[V] Applicable [] Not applicable
In RMB
Occurred current term Occurred in previous term
Products or services
Turnover Operation cost Turnover Operation cost
Screen door of metro station 1,022,878.46 671,466.39
Total 0 0 1,022,878.46 671,466.39
(4) Business segments (on regions)
[V] Applicable [] Not applicable
In RMB
149
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Occurred current term Occurred in previous term
Name of districts
Turnover Operation cost Turnover Operation cost
Domestic 0 0 1,022,878.46 671,466.39
Total 0 0 1,022,878.46 671,466.39
(5) Revenue from top five customers
In RMB
Percentage in
Name of clients Total turnover total turnover of
the Company %
No.1 3,836,393.94 17.21%
No.2 1,268,867.04 5.69%
No.3 591,304.84 2.65%
No.4 529,002.5 2.37%
No.5 499,831.2 2.24%
Total 6,725,399.52 30.17%
Statement on revenue.
5. Investment income
(1) Details of investment gains
In RMB
Items Occurred current term Occurred in previous term
Long-term equity investment gains on cost basis
Long-term equity investment gains on equity basis
Investment gains from disposal of long-term equity
investment
Investment gains in the period of holding transactional
financial assets
Gains from investment held to mature in the period of
holding
Investment gains in period of holding disposable financial
assets
Investment gains from disposal of transactional financial
150
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
assets
Investment gains from investment held to mature
Gains from sellable financial assets and similar
Others
Total 0 0
(2) Long-term equity investment gains on cost basis
In RMB
Occurred in previous
Company invested in Occurred current term Causation of change
term
Total --
(3) Long-term equity investment gains on equity basis
In RMB
Occurred in previous
Company invested in Occurred current term Causation of change
term
Total --
Statement on investment gains:
6. Supplementary data of cash flow statement
In RMB
Supplementary Info. Amount of the Current Term Amount of the Previous Term
1. Net profit adjusted to cash flow of business operation -- --
Net profit 6,980,842.1 5,475,020.08
Plus: Asset impairment provision 122,857.23 -802,130.54
Fixed asset depreciation, gas and petrol depreciation, production
1,175,899.6 1,077,799.18
goods depreciation
Amortizing of intangible assets 327,558.28 325,575.97
Amortizing of long-term expenses
Loss from disposal of fixed assets, intangible assets, and other
2,356.1
long-term assets (“-“ for gains)
Loss from fixed asset discard (“-“ for gains) 56,676.64
151
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Loss from fair value fluctuation (“-“ for gains) -5,543,657.6
Financial expenses (“-“ for gains) 3,544,866.74 1,965,559.92
Investment losses (“-“ for gains)
Decrease of deferred income tax asset (“-“ for increase) 599,070.7 132,386.17
Increase of deferred income tax liability (“-“ for decrease) 1,950,480.76 1,507,171.12
Decrease of inventory (“-“ for increase)
Decrease of operational receivable items (“-“ for increase) -6,702,544.65 721,324.62
Increase of operational payable items (“-“ for decrease) -429,739.7
Others
Cash flow generated by business operation, net 4,355,459.66 5,229,399.06
2. Major investment and financing operation not involving with cash -- --
Liabilities converted to capital
Convertible bond expire in 1 year
Fixed assets leased through financing
3. Net change of cash and cash equivalents -- --
Balance of cash at period end 18,261,159.78 34,000,832.49
Less: Initial balance of cash 24,294,775.12 30,252,759.44
Plus: Balance of cash equivalents at the period end
Less: Initial balance of cash equivalents
Net increasing of cash and cash equivalents -6,033,615.34 3,748,073.05
7. Reverse purchasing of assets and liabilities booked at evaluated value
In RMB
Description of the asset or liabilities booked at evaluated
Appraised value Original book value
value
Assets
Liabilities
(XVI) Supplementary Information
1. Net income on asset ratio and earning per share
In RMB
Profit of the report period Weighted average net Earnings per share
152
China Fangda Group Co., Ltd. Interim Report 2012 (Full Text)
income/asset ratio (%) Diluted earnings per
Basic earnings per share
share
Net profit attributable to common shareholders
1.17% 0.02 0.02
of the Company
Net profit attributable to the common owners of
the PLC after deducting of non-recurring 0.55% 0.01 0.01
gains/losses
2. Irregular situation and causes of items in the financial statements
IX. Documents for Reference
Index of documents for reference
1. Interim Report carrying personal signature and seal of the Chairman of the Board;
2. Accounting Statements with signatures and seals of the legal representative and financial principal and chief of accounting
department;
3. Originals of all documents and manuscripts of Public Notices of the Company disclosed in public in the newspapers as
designated by China Securities Regulatory Commission.
4. The Articles of Association adopted at the latest shareholders’ meeting.
Chairman of the Board: Xiong Jianming
Date of submitting approved by the Board: July 26, 2012
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