Stock Code: 000055, 200055 Stock ID: Fangda Group, Fangda B Announcement No. 2012-40
China Fangda Group Co., Ltd.
Public Notice on Extraodinary Fluctuation of Stock Price
The members of the Board and the Company acknowledge being responsible for the
truthfulness, accuracy, and completeness of the announcement. Not any false record,
misleading statement or significant omission carried in this announcement.
I. Briefing the extraordinary fluctuation of stock price
The price of the Company’s A shares (stock code: 000055) has been fluctuating for
successively three trading days (September 6, 7, 10, 2012), and the accumulated scale of change
has been 20%. It is regarded as extraordinary fluctuation according to the Share Trading Rules of
Shenzhen Stock Exchange, therefore trading of the Company’s shares will be suspended for one
hour since openning of the stock exchange in the morning of September 11, 2012.
II. Verification of the situation by the Company
The Board of Directors verified the related issues through telephone and onsite survey:
1. No issued to be represented or supplemented with the information disclosed previously by
the Company;
2. No information other than the following which is disclosed by public medias, that may or
has made major influence on the price of the shares.
On September 5, 2012, National Development & Reformation Committee has released
multiple approvals regarding railway construction projects and feasible reports. Some 25 railway
projects in 19 cities were approved. For related information please find the news at
http://www.sdpc.gov.cn/xmsphz/default.htm. And “National Investment of RMB800 billion on
Railway Construction Projects in Multiple Cities” available at
http://news.xinhuanet.com/politics/2012-09/06/c_112975421.htm.
Developing, designing, sales and installation of screen door systems in railway
transportations is one of the Company’s main businesses, accounting 7.58% of the Company
annual turnover in 2011 with gross profit ratio of 25.32%. The above issues may influence the
development of industry of the Company, but for the construction periods of the railway system
usually last for several years. And the actual influence on the Company’s business performance is
dependent on the bidding process, construction period, clearance terms, and market share of the
Company. Therefore there is great uncertainty with the future performance and competition edge
of the Company.
On September 7, 2012, the Company released the information about winning of bidding
competition amounted to RMB328 million, including the PSD system of Line R2 of Dongguan
City.
3. No major change happened to the Company internally or externally.
4. No major issues with the Company, the holding shareholder, or substantial controller of
the Company that should have been disclosed or anything under planning.
5. No trading of the Company’s shares by the holding shareholder or the substantial
controller of the Company during the period of extraordinary fluctuation.
III. Statement on no information that should be disclosed but not disclosed
The Board confirms that there was not any issues, or related plans, negotiations, intentions,
agreements that hasn’t been disclosed, which should has been disclosed according to the “Share
Listing Rules of Shenzhen Stock Exchange” and relative regulations. The Board was not informed
with any information that is making major influence on the Company’s stock and its extension
financial instruments that hasn’t been disclosed, which should has been disclosed according to the
“Share Listing Rules of Shenzhen Stock Exchange” and relative regulations.
IV. Prompt of risks
1. No major asset reorganizing, acquisition, or acquisition by share placing occurred with the
Company, and the Company promisses no such plans will be raised in three months since then.
2. No action violating the information disclosing fairness was found in the self-investigation.
3. The Company is expecting a continuous significant declining in Jan-Sept 2012, which has
been described in the Interim Report 2012. Details are:
Jan 1 – Sept 30 Same period
Changed by (%)
2012 last year
Predicted number of accumulative
1,600-2,600 5,305 51.99%-69.84%
net profit (RMB0,000) Decline
Basic earnings per share
0.02-0.03 0.07 57.14%-71.43%
(Yuan/share) Decline
It is caused by providing of asset impairment of Shenyang
Remarks on the prediction
Fangda, which was closed up.
3. Securities Times, China Securities Journal, Shanghai Securities Daily, Hong Kong
Commercial Daily (English), and http://www.cninfo.com.cn are the official information disclosing
media of the Company. All information about the Company are disclosed by these media.
Investors please be aware of the risks attached to the issues.
China Fangda Group Co., Ltd.
The Board of Directors
September 11, 2012
