China Fangda Group Co., Ltd. 2013 Interim Financial Statements
CHINA FANGDA GROUP CO., LTD.
2013 Interim Financial Statements
1
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Consolidated Balance Sheet
Prepared by: China Fangda Group Co., Ltd. June 30, 2013 Unit: RMB Yuan
Items Beginning balance Ending balance
Current asset:
Monetary capital 314,735,102.36 278,283,968.61
Settlement provision
Outgoing call loan
Transactional financial assets
Notes receivable 5,976,417.51 7,638,780.88
Account receivable 870,702,460.22 774,890,805.30
Prepayment 25,525,968.19 22,006,159.22
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance
contracts receivable
Interest receivable 20,583.33 72,833.33
Dividend receivable
Other receivables 68,222,461.81 57,339,556.28
Repurchasing of financial assets
Inventory 278,018,154.56 269,120,191.36
Non-current asset due in 1 year
Other current asset
Total of current asset 1,563,201,147.98 1,409,352,294.98
Non-current assets:
Disburse of consigned loans
Sellable financial assets
Investment held until mature
Long-term receivable
Long-term share equity investment
Investment real estate 258,348,280.65 258,405,762.09
Fixed assets 514,373,558.80 341,555,810.21
Construction in process 3,633,490.64 175,138,694.28
2
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Engineering materials
Disposal of fixed assets 1,676.00
Productive biological assets
Gas & petrol
Intangible assets 100,643,079.78 102,380,382.21
R&D expense 159,850.00 67,700.00
Goodwill
Long-term amortizable expenses 4,651,377.80 4,710,860.65
Deferred income tax assets 37,866,273.79 36,191,385.09
Other non-current assets
Total of non-current assets 919,677,587.46 918,450,594.53
Total of assets 2,482,878,735.44 2,327,802,889.51
Current liabilities
Short-term loans 271,970,000.00 181,970,000.00
Loans from Central Bank
Deposit received and held for
others
Call loan received
Transactional financial liabilities
Notes payable 185,053,083.05 160,779,777.03
Account payable 389,426,010.42 411,846,031.72
Prepayment received 129,213,367.61 77,741,903.02
Selling of repurchased financial
assets
Fees and commissions payable
Employees’ wage payable 13,236,365.66 23,945,272.55
Taxes payable 33,693,825.27 33,686,577.98
Interest payable 8,523,431.51 1,954,557.27
Dividend payable
Other payables 39,791,678.84 41,340,056.86
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
3
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Non-current liabilities due in 1
year
Other current liabilities 200,000,000.00 200,000,000.00
Total of current liabilities 1,270,907,762.36 1,133,264,176.43
Non-current liabilities:
Long-term loans
Bond payable
Long-term payable 2,100.00 7,700.00
Special payables
Anticipated liabilities
Deferred income tax liabilities 36,652,619.76 36,210,286.40
Other non-current liabilities 2,000,000.00
Total of non-current liabilities 38,654,719.76 36,217,986.40
Total liabilities 1,309,562,482.12 1,169,482,162.83
Owners’ equity (or shareholders’
equity)
Capital paid in (or share capital) 756,909,905.00 756,909,905.00
Capital reserves 80,299,867.64 80,299,867.64
Less: Shares in stock
Special reserves
Surplus reserves 30,494,542.94 30,494,542.94
Common risk provisions
Retained profit 247,728,960.54 230,907,879.99
Difference caused by translation of
foreign currency statements
Total of owner’s equity belong to the
1,115,433,276.12 1,098,612,195.57
parent company
Minor shareholders’ equity 57,882,977.20 59,708,531.11
Total of owners’ equity (or
1,173,316,253.32 1,158,320,726.68
shareholders’ equity)
Total of liability and owners’ equity (or
2,482,878,735.44 2,327,802,889.51
shareholders’ equity)
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Chen Yonggang
4
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Balance Sheet of the Parent Company
Prepared by: China Fangda Group Co., Ltd. June 30, 2013 Unit: RMB Yuan
Items Beginning balance Ending balance
Current asset:
Monetary capital 97,846,203.00 25,790,604.84
Transactional financial assets
Notes receivable
Account receivable 5,157,141.38 5,157,141.38
Prepayment 20,271.85
Interest receivable
Dividend receivable 39,356,000.00 39,356,000.00
Other receivables 379,204,083.28 512,298,790.52
Inventory
Non-current asset due in 1 year
Other current asset
Total of current asset 521,563,427.66 582,622,808.59
Non-current assets:
Sellable financial assets
Investment held until mature
Long-term receivable
Long-term share equity investment 709,733,745.58 669,733,745.58
Investment real estate 254,766,256.33 254,766,256.33
Fixed assets 85,958,453.34 87,649,932.55
Construction in process 1,701,315.00 1,701,315.00
Engineering materials
Disposal of fixed assets
Productive biological assets
Gas & petrol
Intangible assets 9,066,594.42 9,352,376.54
R&D expense
Goodwill
Long-term amortizable expenses 62,893.07 75,471.70
5
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Deferred income tax assets 11,781,107.49 12,333,214.12
Other non-current assets
Total of non-current assets 1,073,070,365.23 1,035,612,311.82
Total of assets 1,594,633,792.89 1,618,235,120.41
Current liabilities
Short-term loans 200,000,000.00 180,000,000.00
Transactional financial liabilities
Notes payable
Account payable 1,849,090.36 1,849,090.36
Prepayment received 693,045.60 753,108.70
Employees’ wage payable 658,893.41 1,479,449.88
Taxes payable 1,773,217.39 826,456.83
Interest payable 8,406,764.84 1,954,557.27
Dividend payable
Other payables 51,311,664.08 83,515,779.52
Non-current liabilities due in 1
year
Other current liabilities 200,000,000.00 200,000,000.00
Total of current liabilities 464,692,675.68 470,378,442.56
Non-current liabilities:
Long-term loans
Bond payable
Long-term payable
Special payables
Anticipated liabilities
Deferred income tax liabilities 36,652,619.76 36,210,286.40
Other non-current liabilities
Total of non-current liabilities 36,652,619.76 36,210,286.40
Total liabilities 501,345,295.44 506,588,728.96
Owners’ equity (or shareholders’
equity)
Capital paid in (or share capital) 756,909,905.00 756,909,905.00
Capital reserves 39,799,212.26 39,799,212.26
Less: Shares in stock
6
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Special reserves
Surplus reserves 30,494,542.94 30,494,542.94
Common risk provisions
Retained profit 266,084,837.25 284,442,731.25
Difference caused by translation of
foreign currency statements
Total of owners’ equity (or
1,093,288,497.45 1,111,646,391.45
shareholders’ equity)
Total of liability and owners’ equity (or
1,594,633,792.89 1,618,235,120.41
shareholders’ equity)
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Chen Yonggang
Consolidated Income Statement
Prepared by: China Fangda Group Co., Ltd. June 30, 2013 Unit: RMB Yuan
Items Amount of the Current Term Amount of the Previous Term
1. Total revenue 736,828,039.88 529,289,597.80
Incl. Business income 736,828,039.88 529,289,597.80
Interest income
Insurance fee earned
Fee and commission
received
2. Total business cost 693,328,494.53 528,136,264.96
Incl. Business cost 584,493,820.44 418,086,030.44
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 13,633,238.09 9,750,997.72
7
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Sales expense 17,614,987.09 15,164,029.76
Administrative expense 57,347,495.40 55,896,227.34
Financial expenses 12,213,522.40 11,361,459.25
Asset impairment loss 8,025,431.11 17,877,520.45
Plus: gains from change of fair
5,936,670.15
value (“-“ for loss)
Investment gains (“-“ for
loss)
Incl. Investment gains from
affiliates and joint ventures
Exchange gains (“-“ for
loss)
3. Operational profit (“-“ for loss) 43,499,545.35 7,090,002.99
Plus: non-operational income 2,504,701.74 3,154,994.50
Less: non-operational expenditure 672,299.16 420,305.21
Incl. Loss from disposal of
169,723.53 134,421.19
non-current assets
4. Gross profit (“-“ for loss) 45,331,947.93 9,824,692.28
Less: Income tax expenses 7,795,908.42 7,907,457.04
5. Net profit (“-“ for net loss) 37,536,039.51 1,917,235.24
Including: Net profit realized by
the entity taken over before the takeover
Net profit attributable to the
39,361,593.42 12,643,297.40
owners of parent company
Minor shareholders’ equity -1,825,553.91 -10,726,062.16
6. Earnings per share: -- --
(1) Basic earnings per share 0.05 0.02
(2) Diluted earnings per share 0.05 0.02
7. Other misc. incomes -2,668.37
8. Total of misc. incomes 37,536,039.51 1,914,566.87
Total of misc. incomes attributable
39,361,593.42 12,640,629.03
to the owners of the parent company
Total misc gains attributable to the
-1,825,553.91 -10,726,062.16
minor shareholders
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Chen Yonggang
8
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Income Statement of the Parent Company
Prepared by: China Fangda Group Co., Ltd. June 30, 2013 Unit: RMB Yuan
Items Amount of the Current Term Amount of the Previous Term
1. Turnover 23,580,401.58 22,293,459.72
Less: Operation cost 4,742,190.07 4,730,478.42
Business tax and surcharge 1,829,817.82 1,801,110.33
Sales expense -15,831.98
Administrative expense 10,381,634.49 9,113,577.56
Financial expenses 2,086,644.86 3,474,277.89
Asset impairment loss 14,817.75 122,857.23
Plus: gains from change of fair
5,609,909.15
value (“-“ for loss)
Investment gains (“-“ for
loss)
Incl. Investment gains from
affiliates and joint ventures
2. Operational profit (“-“ for loss) 4,525,296.59 8,676,899.42
Plus: non-operational income 1,025,011.10 910,170.78
Less: non-operational expenditure 373,248.83 56,676.64
Incl. Loss from disposal of
34,285.02 56,676.64
non-current assets
3. Gross profit (“-“ for loss) 5,177,058.86 9,530,393.56
Less: Income tax expenses 994,439.99 2,549,551.46
4. Net profit (“-“ for net loss) 4,182,618.87 6,980,842.10
5. Earnings per share: -- --
(1) Basic earnings per share
(2) Diluted earnings per share
6. Other misc. incomes 0.00 -2,668.37
7. Total of misc. incomes 4,182,618.87 6,978,173.73
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Chen Yonggang
9
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Consolidated Cash Flow Statement
Prepared by: China Fangda Group Co., Ltd. June 30, 2013 Unit: RMB Yuan
Items Amount of the Current Term Amount of the Previous Term
1. Net cash flow from business
operation
Cash received from sales of
746,305,400.55 488,949,208.73
products and providing of services
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 1,402,420.40 1,171,203.29
Other cash received from business
24,853,131.88 31,104,199.38
operation
Sub-total of cash inflow from business
772,560,952.83 521,224,611.40
activities
Cash paid for purchasing of
596,363,985.36 415,468,117.93
merchandise and services
Net increase of client trade and
advance
10
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
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
80,075,568.67 59,680,101.99
staffs
Taxes paid 39,998,936.89 43,842,326.44
Other cash paid for business
55,032,599.32 70,303,817.97
activities
Sub-total of cash outflow from business
771,471,090.24 589,294,364.33
activities
Cash flow generated by business
1,089,862.59 -68,069,752.93
operation, net
2. Cash flow generated by investment:
Cash received from investment
recovery
Cash received as investment profit
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 230,729.00 1,098,900.00
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash
371,500.00 2,180,644.64
received
Sub-total of cash inflow due to
602,229.00 3,279,544.64
investment activities
Cash paid for construction of fixed
assets, intangible assets and other 35,013,827.84 47,681,003.19
long-term assets
Cash paid as investment 20,000,000.00
Net increase of loan against pledge
Net cash received from
subsidiaries and other operational units
Other cash paid for investment
960,000.00 887,100.00
activities
11
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Subtotal of investment activity cash
55,973,827.84 48,568,103.19
outflows
Cash flow generated by investment
-55,371,598.84 -45,288,558.55
activities, net
3. Cash flow generated by financing:
Cash received from investment
Incl. Cash received as investment
from minor shareholders
Cash received as loans 160,000,000.00 359,500,000.00
Cash received from bond placing
Other financing-related cash
received
Subtotal of cash inflow from financing
160,000,000.00 359,500,000.00
activities
Cash to repay debts 70,000,000.00 231,000,000.00
Cash paid as dividend, profit, or
28,180,178.76 14,395,048.68
interests
Incl. Dividend and profit paid by
subsidiaries to minor shareholders
Other cash paid for financing
81,621.53 15,150,000.00
activities
Subtotal of cash outflow due to
98,261,800.29 260,545,048.68
financing activities
Net cash flow generated by financing 61,738,199.71 98,954,951.32
4. Influence of exchange rate alternation
-36.18 7,703.27
on cash and cash equivalents
5. Net increase of cash and cash
7,456,427.28 -14,395,656.89
equivalents
Plus: Balance of cash and cash
240,167,372.86 300,177,008.78
equivalents at the beginning of term
6. Balance of cash and cash equivalents
247,623,800.14 285,781,351.89
at the end of term
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Chen Yonggang
Cash Flow Statement of the Parent Company
Prepared by: China Fangda Group Co., Ltd. June 30, 2013 Unit: RMB Yuan
12
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Items Amount of the Current Term Amount of the Previous Term
1. Net cash flow from business
operation
Cash received from sales of
17,270,087.97 17,684,620.78
products and providing of services
Tax returned
Other cash received from business
297,539,451.29 94,772,888.12
operation
Sub-total of cash inflow from business
314,809,539.26 112,457,508.90
activities
Cash paid for purchasing of
5,883,177.71 5,635,577.54
merchandise and services
Cash paid to staffs or paid for
5,654,402.78 4,570,911.79
staffs
Taxes paid 2,290,978.47 2,169,865.52
Other cash paid for business
181,902,222.11 95,725,694.39
activities
Sub-total of cash outflow from business
195,730,781.07 108,102,049.24
activities
Cash flow generated by business
119,078,758.19 4,355,459.66
operation, net
2. Cash flow generated by investment:
Cash received from investment
recovery
Cash received as investment profit
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 729.00 900.00
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash
received
Sub-total of cash inflow due to
729.00 900.00
investment activities
Cash paid for construction of fixed
assets, intangible assets and other 73,788.50 3,037,035.00
long-term assets
Cash paid as investment 40,000,000.00
13
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Net cash received from
subsidiaries and other operational units
Other cash paid for investment
activities
Subtotal of investment activity cash
40,073,788.50 3,037,035.00
outflows
Cash flow generated by investment
-40,073,059.50 -3,036,135.00
activities, net
3. Cash flow generated by financing:
Cash received from investment
Cash received as loans 90,000,000.00
Cash received from bond placing
Other financing-related cash
received
Subtotal of cash inflow from financing
90,000,000.00
activities
Cash to repay debts 70,000,000.00
Cash paid as dividend, profit, or
26,856,728.43 7,352,940.00
interests
Other cash paid for financing
81,621.53
activities
Subtotal of cash outflow due to
96,938,349.96 7,352,940.00
financing activities
Net cash flow generated by financing -6,938,349.96 -7,352,940.00
4. Influence of exchange rate alternation
on cash and cash equivalents
5. Net increase of cash and cash
72,067,348.73 -6,033,615.34
equivalents
Plus: Balance of cash and cash
25,540,604.84 24,337,261.80
equivalents at the beginning of term
6. Balance of cash and cash equivalents
97,607,953.57 18,303,646.46
at the end of term
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Chen Yonggang
Statement of Change in Owners’ Equity (Consolidated)
Prepared by: China Fangda Group Co., Ltd. June 30, 2013 Unit: RMB Yuan
14
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Amount of the Current Term
Owners’ Equity Attributable to the Parent Company
Capital
Commo Minor Total of
Items paid in Less:
Capital Special Surplus n risk Retaine sharehold owners’
(or Shares Others
reserves reserves reserves provisio d profit ers’ equity equity
share in stock
ns
capital)
1. Balance at the end of last 756,909 80,299,8 30,494, 230,907, 59,708,53 1,158,320,
year ,905.00 67.64 542.94 879.99 1.11 726.68
Plus: Change of
accounting policy
Correcting of
previous errors
Others
2. Balance at the beginning of 756,909 80,299,8 30,494, 230,907, 59,708,53 1,158,320,
current year ,905.00 67.64 542.94 879.99 1.11 726.68
3. Amount of change in current 16,821,0 -1,825,55 14,995,526
term (“-“ for decrease) 80.55 3.91 .64
39,361,5 -1,825,55 37,536,039
(1) Net profit
93.42 3.91 .51
(2) Other misc. income
39,361,5 -1,825,55 37,536,039
Total of (1) and (2)
93.42 3.91 .51
(3) Investment or decreasing of
capital by owners
1. 1. Capital input by owners
2. Amount of shares paid and
accounted as owners’ equity
3. Others
-22,540, -22,540,51
(4) Profit allotment
512.87 2.87
1. Providing of surplus reserves
2. Common risk provision
3. Allotment to the owners (or -22,540, -22,540,51
shareholders) 512.87 2.87
4. Others
(5) Internal transferring of
owners’ equity
15
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
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
(6) Special reserves
1. Provided this year
2. Used this term
(7) Others
4. Balance at the end of this 756,909 80,299,8 30,494, 247,728, 57,882,97 1,173,316,
term ,905.00 67.64 542.94 960.54 7.20 253.32
Amount of Last Year
In RMB
Amount of Last Year
Owners’ Equity Attributable to the Parent Company
Capital
Commo Minor Total of
Items paid in Less:
Capital Special Surplus n risk Retaine sharehold owners’
(or Shares Others
reserves reserves reserves provisio d profit ers’ equity equity
share in stock
ns
capital)
1. Balance at the end of last 756,909 80,479,4 24,676, 211,777, 78,213,66 1,152,057,
year ,905.00 93.92 077.16 968.57 5.93 110.58
Plus: Retrospective
adjustment caused by merger of
entities under common control
Plus: Change of
accounting policy
Correcting of
previous errors
Others
2. Balance at the beginning of 756,909 80,479,4 24,676, 211,777, 78,213,66 1,152,057,
current year ,905.00 93.92 077.16 968.57 5.93 110.58
3. Amount of change in current -179,62 5,818,4 19,129,9 -18,505,1 6,263,616.
term (“-“ for decrease) 6.28 65.78 11.42 34.82 10
24,948,3 -18,505,1 6,443,242.
(1) Net profit
77.20 34.82 38
16
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
-179,62 -179,626.2
(2) Other misc. income
6.28 8
-179,62 24,948,3 -18,505,1 6,263,616.
Total of (1) and (2)
6.28 77.20 34.82 10
(3) Investment or decreasing of
capital by owners
1. 1. Capital input by owners
2. Amount of shares paid and
accounted as owners’ equity
3. Others
5,818,4 -5,818,4
(4) Profit allotment
65.78 65.78
5,818,4 -5,818,4
1. Providing of surplus reserves
65.78 65.78
2. Common risk provision
3. Allotment to the owners (or
shareholders)
4. Others
(5) Internal 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
(6) Special reserves
1. Provided this year
2. Used this term
(7) Others
4. Balance at the end of this 756,909 80,299,8 30,494, 230,907, 59,708,53 1,158,320,
term ,905.00 67.64 542.94 879.99 1.11 726.68
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Chen Yonggang
17
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Statement of Change in Owners’ Equity (Parent Company)
Prepared by: China Fangda Group Co., Ltd. June 30, 2013 Unit: RMB Yuan
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 provisions equity
capital)
756,909,90 39,799,212 30,494,542 284,442,73 1,111,646,
1. Balance at the end of last year
5.00 .26 .94 1.25 391.45
Plus: Change of accounting
policy
Correcting of previous
errors
Others
2. Balance at the beginning of 756,909,90 39,799,212 30,494,542 284,442,73 1,111,646,
current year 5.00 .26 .94 1.25 391.45
3. Amount of change in current -18,357,89 -18,357,89
term (“-“ for decrease) 4.00 4.00
4,182,618. 4,182,618.
(1) Net profit
87 87
(2) Other misc. income
4,182,618. 4,182,618.
Total of (1) and (2)
87 87
(3) Investment or decreasing of
capital by owners
1. 1. Capital input by owners
2. Amount of shares paid and
accounted as owners’ equity
3. Others
-22,540,51 -22,540,51
(4) Profit allotment
2.87 2.87
1. Providing of surplus reserves
2. Common risk provision
3. Allotment to the owners (or -22,540,51 -22,540,51
shareholders) 2.87 2.87
4. Others
18
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
(5) Internal 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
(6) Special reserves
1. Provided this year
2. Used this term
(7) Others
756,909,90 39,799,212 30,494,542 266,084,83 1,093,288,
4. Balance at the end of this term
5.00 .26 .94 7.25 497.45
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 provisions equity
capital)
756,909,90 41,078,838 24,676,077 232,076,53 1,054,741,
1. Balance at the end of last year
5.00 .54 .16 9.24 359.94
Plus: Change of accounting
policy
Correcting of previous
errors
Others
2. Balance at the beginning of 756,909,90 41,078,838 24,676,077 232,076,53 1,054,741,
current year 5.00 .54 .16 9.24 359.94
3. Amount of change in current -1,279,626. 5,818,465. 52,366,192 56,905,031
term (“-“ for decrease) 28 78 .01 .51
58,184,657 58,184,657
(1) Net profit
.79 .79
-1,279,626. -1,279,626.
(2) Other misc. income
28 28
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China Fangda Group Co., Ltd. 2013 Interim Financial Statements
-1,279,626. 58,184,657 56,905,031
Total of (1) and (2)
28 .79 .51
(3) Investment or decreasing of
capital by owners
1. 1. Capital input by owners
2. Amount of shares paid and
accounted as owners’ equity
3. Others
5,818,465. -5,818,465.
(4) Profit allotment
78 78
5,818,465. -5,818,465.
1. Providing of surplus reserves
78 78
2. Common risk provision
3. Allotment to the owners (or
shareholders)
4. Others
(5) Internal 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
(6) Special reserves
1. Provided this year
2. Used this term
(7) Others
756,909,90 39,799,212 30,494,542 284,442,73 1,111,646,
4. Balance at the end of this term
5.00 .26 .94 1.25 391.45
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Chen Yonggang
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China Fangda Group Co., Ltd. 2013 Interim Financial Statements
China Fangda Group Co., Ltd.
Notes to Financial Statements
First Half of 2013
Prepared by: China Fangda Group Co., Ltd. Unit: RMB Yuan
I. General Information
China Fangda Group Co., Ltd. (the “Company” or the “Group”) is a joint stock company registered in
Shenzhen, Guangdong and was approved by the Government of Shenzhen with Document Gov. Office Doc.
(1995) No.194, and was founded, on the basis of Shenzhen Fangda Construction Material Co., Ltd., by way of
share issuing in October 1995. The Registration No. of the Company’s business license is: 440301501124785;
registered address: Fangda Building, Kejinan Road 12, High-tech Zone, Shenzhen. Mr. Xiong Jianming is the
legal representative.
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 Shenzhen Business Introduction [1997] No.0192, 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 “profit distribution and capitalizing plan 2010" was adopted on the Shareholders’ Annual Meeting 2010.
Which was: basing on the total capital shares of 504,606,604 shares, 5 bonus share was added to each 10 shares to
all shareholders, totally 252,303,301 shares was capitalized with face value of RMB1. In May 2011, the
Company’s registered capital was changed to RMB756,909,905.
The Company has established a corporate governance structure that comprises shareholders’ meeting, board
of directors and supervisory committee. Currently, the Company sets up the President Office, Administrative
Department, HR Department, Enterprise Management Department, Financial Department, Audit and Supervisory
Department, Securities Department, Technology Department and IT Department and has established subsidiaries
including Fangda Decoration, Fangda Automatic, Jiangxi New Material, Shenyang Fangda and Fangda Property.
The business scope includes 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.
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China Fangda Group Co., Ltd. 2013 Interim Financial Statements
II. Main Accounting Policies, Estimations and Retrospection of Previous Accounting Errors
1. Basis for the preparation of financial statements
The financial statements have been prepared in accordance with the Enterprise Accounting Standard – Basic
Standards and 38 specific accounting principles issued in February 2006 by the Ministry of Finance and its
application guide, interpretation and other related provision (collectively “Enterprise Accounting Standards”). The
Company has also disclosed related financial information according to the requirement of the Regulations of
Information Disclosure No.15 – General Provisions for Financial Statements (Revised in 2010) issued by the
CSRC.
Except for subsidiaries that have stopped operating, the financial statements are prepared on the basis of
continuous operation. The financial statements for subsidiaries that have stopped operating (Shenyang Fangda,
Fangda Aluminium and Fang Yide) are prepared on the basis of non-continuous operation.
The Company's audit is based on the accrual basis. Except for some financial instruments and property held
for investment, which will be further measured based on the fair value mode, the financial statements are prepared
based on historical costs. In case of any asset impairment, the impairment provision will be made as required.
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 30.06.13, and business performance and cash flow
situation in the first half of year 2013 of the Company frankly and completely.
3. Fiscal Period
The fiscal year of the Group is the solar calendar year, from January 1 to December 31.
4. Bookkeeping standard money
The Company takes RMB as the standard currency for bookkeeping.
5. Accounting treatment of the entities under common and different control
(1) Consolidation 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 in addition to the adjustment made given the difference in accounting policies. 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 capital reserve (share capital premium). If the share capital premium is not enough to
offset the difference, it will be adjusted to the retained gains.
The direct expenses arising from the merger are included in profits and losses in the current period.
(2) Consolidation of entities under different control
For merger of entities under different control, the merger cost is the fair value of the asset paid, liability
22
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
undertaken, and equity securities issued for exchanging of control power over the entities at the day of acquisition.
On the acquisition day, the assets and liabilities (if any) acquired by the Company from the acquired party are
recognized on the fair value.
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.
If the merger costs exceed the fair value of the recognizable net assets of the acquired party in the merger, it
is recognized as goodwill and measured based the costs after the accumulative impairment provision is deducted;
if the fair value exceeds the costs, it is included in the income statement for the period after being re-examined.
6. Preparation of Consolidated Financial Statements
(1). Preparation of Consolidated Financial Statements
The consolidation scope for the consolidated financial statements includes the Company and all subsidiaries.
The consolidated financial statements are prepared by the Company based on financial statements of the
Company and subsidiaries and according to other related information and adjusted as long-term equity investment
of subsidiaries through the equity method. During preparation of consolidated financial statements, the accounting
policies and period of the Company and subsidiaries must be the same. Major transactions and balances between
companies are offset.
The part of the shareholders’ equity in subsidiaries not owned the Company is separately listed under the
shareholders’ equity as minority shareholders’ equity in the consolidated balance sheet. The part of the
subsidiaries’ net profits and losses for the current period that belongs to minority shareholders is listed as minority
shareholders’ profits and losses under net profit in the consolidated income statement. If the losses of subsidiaries
shared by the minority shareholders exceed the part of the owners’ equity of the subsidiaries at the beginning of
the period, the excessive part will offset the minority shareholders’ equity.
(2) Accounting methods for the share equity of the same subsidiary purchased and sold in two consecutive
accounting years
7. Recognition of cash and cash equivalents
Cash refers to cash on hand and deposits that can be used at any time for payment. Cash equivalent 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. Foreign exchange business and foreign exchange statement translation
(1) Foreign currencies
Trades of the Company made in foreign currencies are translated into RMB basing on the spot exchange rate
on the date when the trade is conducted.
At the balance sheet date, foreign currency items are translated on the spot exchange rate of the balance sheet
23
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
date. The exchange differences caused by the difference in exchange rates on the balance sheet date and initial
recognizing date or previous balance sheet date is included in the current profits and losses. Non-monetary items
accounted in foreign currency and on historical costs are exchanged with the spot exchange rate on the transaction
date.
(2) Translation of foreign exchange statement
9 Financial instrument
Financial instrument refers to a company’s financial assets and contracts that form other units of financial
liabilities or equity instruments.
(1) Classification of financial instruments
Financial assets are categorized as: financial assets measured at fair value with variations accounted into
current income account, loans, account receivables and disposable financial assets.
Receivables
Receivables refer to non-derivative financial assets without quotations but with fixed recoverable amount or
can be confirmed, including receivable accounts and other receivables. Receivables adopt the effective interest
method and are further measured by amortized cost. Gain/loss generated at final recognition, impairment or
amortization is accounted into the current gain/loss account.
Sellable financial assets
Sellable financial asset refers to those sellable non-derivate financial assets recognized initially and financial
assets other than the above-mentioned types of financial assets. Sellable financial assets are further measured by
fair value and the premium/discount is amortized by the effective interest method and recognized as interest
income. Other than the exchange difference of impairment loss and foreign exchange monetary financial assets,
which is recognized as current gain and loss, the variations in fair value of sellable financial assets is recognized
as other comprehensive gain and accounted in capital reserve. When it is derecognized and transferred out, it is
accounted into the current gain/loss account. Dividends and interest income related to sellable financial assets are
accounted into the current gain/loss account.
The Company’s financial liabilities are mainly other financial liabilities. Other financial liabilities adopt the
effective interest method and are further measured by amortized cost. Gain/loss generated at final recognition or
amortization is accounted into the current gain/loss account.
(2) Recognition and measurement of financial instruments
The Company recognizes a financial asset or liability when it becomes one party in the financial instrument
contract.
Financial asset is derecognized when:
(1) The contractual right to receive the cash flows of the financial assets is terminated;
(2) The financial asset is transferred and meets the following derecognizing condition.
Financial asset transactions in regular ways are recognized and de-recognized on the transaction date.
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China Fangda Group Co., Ltd. 2013 Interim Financial Statements
(3) Recognition and measurement of financial assets transfer
The transfer of financial assets refers to transferring or delivering the financial assets to another party
(receiver) other than the issuing party of the financial assets.
Recognition of the financial asset is terminated as soon as all of the risks and rewards attached to the
financial asset have 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 the Company neither transfers nor reserve almost all risks and rewards attached to the financial assets,
it will be handled as: When the controlling power over the financial asset is given up, the financial assets will be
derecognized and the generated assets and liabilities will be recognized; 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) De-recognition conditions of financial liabilities
When partial or all of the current responsibilities attached to such financial liabilities, the partial or all of the
financial liabilities are derecognized. When the Company (debtor) and creditor enter into an agreement to replace
the existing financial liabilities by undertaking new financial liabilities and the contract terms for the new
financial liabilities are essentially different from those for the existing one, the existing financial liabilities will be
derecognized and new financial liabilities will be recognized.
(5) Recognition of fair value of financial assets and liabilities
For financial assets in an active market, the Company uses the prevailing quotations or asking prices to
determine the fair value.
If there is no active market, the Company uses evaluation techniques to determine the fair value. The results
derived from the adoption of valuation technologies reflect the trading prices that may be adopted in arm’s length
basis transactions on the valuation date. Valuation techniques include using recent arm’s length market
transactions between knowledgeable, willing parties, if available, reference to the current fair value of another
instrument that is substantially the same, a discounted cash flow analysis and option pricing models.
The Company has adopted valuation techniques that have been widely accepted by market participants and
proven reliable by previous effective transaction prices. When using valuation techniques to determine financial
instruments’ fair value, the Company has managed to use all market parameters that market participants would
consider during financial instrument pricing and transaction prices observable in the current market for same
financial instruments to examine the effectiveness of the valuation techniques.
(6) Impairment test and provision of financial assets (excluding receivables)
The Company checks the book value of financial assets on the balance sheet date. Impairment provision will
be made in case of objective evidence proving impairment to the financial assets. Objective evidence proving
impairment to the financial assets refers to events actually occur after the initial recognition of financial assets,
with influence on the estimated future cash flows of the financial assets and can be reliably measured by the
Company.
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China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Financial assets measured at amortized cost
If there is objective evidence proving impairment to the financial assets, the book value of the financial assets
will be written down to the present value of the estimated future cash flow (excluding undiscovered future credit
loss). The write-down amount is accounted into the current gain/loss account. The present value of the estimated
future cash flow is determined by the original effective discount rate with the value of the guarantee considered.
Conduct impairment test separately for major financial assets. If there is objective evidence suggesting
impairment, determine the impairment loss and account it into the current gain/loss account. Conduct impairment
test for other financial assets including financial assets combination with similar credit risk features. Test financial
assets without impairment separately (including major and minor financial assets) and conduct impairment test in
the financial assets combination with similar credit risk features. Conduct impairment test for financial assets
separately recognized as impaired excluding financial assets combination with similar credit risk features.
After the Company recognizes impair loss to financial assets measured by amortized cost, if there is object
evidence suggesting that the value of the financial assets is restored objectively due to an event after the loss, the
recognized impairment loss can be reversed and accounted into the current gain/loss account. The book value after
the reversal must not exceed the amortized cost of the financial assets on the reversal date assuming that no
impairment provision was made.
Sellable financial assets
If there is objective evidence suggesting impairment to the financial assets, the accumulative loss generated
by the decrease in the fair value that has been directed accounted into capital reserve should be transferred out and
accounted into the current gain/loss account. The transferred accumulative loss is the balance of the initial
acquisition cost of the sellable financial assets after the recovered principal and amortized amount, current fair
value and impair loss that has been accounted into the gain/loss account are deducted.
For the sellable debt instruments recognized as impaired, if the fair value increases in the following
accounting period objectively due to an event after the original impair loss is recognized, the impairment loss will
be reversed and accounted into the current gain/loss account. Impairment loss incurred in investment of sellable
equity instrument is not reversed through the gain/loss account.
Financial assets measured at cost
If there is no quotation in an active market and its fair value cannot be measured reliably or the derivative
financial assets that linked to the equity instrument and can only settled by delivering the equity instrument is
impaired, the difference between the book value of the financial assets and the current value recognized by
discounting the future cash flow against the market yield of similar financial assets in the current market is
recognized as the impairment loss and accounted into the current gain/loss account. The impairment loss cannot
be reversed after being recognized.
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China Fangda Group Co., Ltd. 2013 Interim Financial Statements
(7) The basis of reclassifying the immature investment held until maturity as sellable financial assets, indicating
changes in the intention or capability of holding the investment
10. Recognition standard and provision method for receivable bad debt provision
Receivables include receivable accounts, other receivables and prepayment.
The Company divides receivable accounts into project receivables and product receivables. Project
receivables are those recognized at percentage according to the construction contract, product receivables are
those formed in other ways.
(1) Receivables with major individual amount and bad debt provision provided individually
For the current year, the Company recognizes project
receivables over RMB8 million (inclusive) as “individual
receivable with large amount” while recognizes product
Judging basis or standard of major individual amount receivables over RMB2 million (included) as “individual
receivable with large amount” and other receivables over
RMB1 million (included) as “individual receivable with large
amount”.
The Company performs impairment examination individually
on each large amount receivables, and recognizes impairment
Provision method for account receivable with major individual and provides bad debt provision when the impairment is
amount and bad debt provision provided individually recognized based on objective evidence. Those not impaired
are accounted along with the minor amount receivables and
recognized in risk groups.
(2) Recognition and providing of bad debt provisions on groups
Group Providing method Grouping basis
Account age Aging method Account age
Receivable accounts consolidated Other method Consolidation scope
Receivables adopting the aging method in the group
√ Applicable □ Inapplicable
Age Providing rate for receivable account % Providing rate for other receivables %
Within 1 year (inclusive) 3% 3%
1-2 years 10% 10%
2-3 years 30% 30%
Over 3 years 50% 50%
3-4 years 50% 50%
4-5 years 50% 50%
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China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Over 5 years 50% 50%
Receivables adopting the balance percentage method in the group
□ Applicable √ Inapplicable
Receivables adopting other methods in the group
√ Applicable □ Inapplicable
Group Method
Receivable accounts consolidated Individual recognition method
(3) Account receivable with minor individual amount and bad debt provision provided individually
Reasons for separate bad debt provision Long account age or deterioration of customer creditability
According to the difference between the present value of future cash flow and the
Method of bad debt provision
book value
11. Inventories
(1) Classification of inventories
The Company’s inventories include purchased materials, raw materials, low-value consumables, OEM
materials, products in process, semi-finished goods, finished goods, agency goods, and construction in process.
(2) Pricing of delivering inventory
Weighted average method
Inventories are measured at cost when procured. Raw materials, products in process, commodity stocks and
goods shipped in transit are measured by the weighted average method.
Construction contracts are measured by the effective cost, including direct and indirect expenses generated
before the contracts are fulfilled. Costs generated and recognized accumulatively by construction in process and
settled payment are listed in the balance sheet as offset net amounts. The excessive part of the sum of the
generated costs and recognized gross profit (loss) over the settled payment is listed inventories; the excessive part
of the settled payment over the sum of the generated costs and recognized gross profit (loss) is listed as the
prepayment received.
Travel and bidding expenses generated by execution of contracts, if they can be separated and reliably
measured and it is likely to enter into contracts, are accounted as the contract cost when the contracts are entered
into; or into the current gain/loss account if the conditions are not met.
(3) Recognition of inventory realizable value and providing of impairment provision
On the balance sheet date, inventories are accounted depending on which is lower between the cost and the
net realizable value. If the cost is higher than the net realizable value, the impairment provision will be made.
At overall verification of inventories at the end of year, when the net realizable value is lower than the cost,
provisions for impairment of inventories shall be drawn. Provisions for impairment of inventories shall be
28
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
accounted according to the difference between the cost of individual inventory items and the net realizable value.
The Company generally made inventory impairment provision individually or by categories. 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. Inventories with similar purpose or final use, produced and to be sold in the same district
and cannot be separated for valuation will be provided together; inventory of a large quantity and with low prices
are provided by categories. On the balance sheet day, if the influence of the inventory value write-down has
disappeared, the impairment provision will be reversed within the provided amount.
(4) Inventory system
The Company uses perpetual inventory system.
The Company uses perpetual inventory system.
(5) Amortizing of low-value consumables and packaging materials
Low price consumable
On-off amortization basis
Low-value consumables are amortized on on-off amortization basis at using.
Package
On-off amortization basis
Packages are amortized on on-off amortization basis at using.
12. Long-term share equity investment
(1) Recognition of initial investment costs
All the long-term share equity investments of the Company are the investment in subsidiaries: Investment of the
Company in subsidiaries is valued at investment costs. For long-term share equity investment formed by
shareholding and merger, see the accounting method for merger between enterprises under the same control and
not under the same control. Retrospective or retrieved investment is adjusted to the cost of long term equity
investment.
2. Subsequent 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. For the long-term equity investment measured on the
cost basis, except for the announced cash dividend or profit included in the practical cost or price when the
investment was made, the cash dividends or profit distributed by the invested entity are recognized as investment
gains in the current gain/loss account.
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China Fangda Group Co., Ltd. 2013 Interim Financial Statements
(3) Basis for recognition of common control and major influence on invested entities
(4) Impairment examination and providing of impairment provision
The Company judges whether there is a sign of impairment to assets on the balance sheet day. If such sign exists,
the Company estimates the recoverable amount and conducts the impairment test. Impairment test is conducted
annually for goodwill generated by mergers and intangible assets that have not reached the useful condition no
matter whether the impairment sign exists. The recoverable amount is determined by the higher of the net of fair
value minus disposal expense and the present value of the predicted future cash flow. The Company estimates the
recoverable amount on the individual asset item basis; whether it is hard to estimate the recoverable amount on the
individual asset item basis, determine the recoverable amount based on the asset group that the assets belong to.
The assets group is determined by whether the main cash flow generated by the group is independent from those
generated by other assets or assets groups. When the recoverable amount of the assets or assets group is lower
than its book value, the Company writes down the book value to the recoverable amount, the write-down amount
is accounted into the current income account and the assets impairment provision is made. For goodwill
impairment test, the book value of goodwill generated by mergers is amortized through reasonable measures since
the purchase day to related asset groups; those cannot be amortized to related assets groups are amortized to
related combination of asset groups. The related asset groups or combination of asset groups refer to those that can
benefit from the synergistic effect of mergers and must not exceed to the reporting range determined by the
Company. When the impairment test is conducted, if there is sign of impairment to the asset group or combination
of asset groups related to goodwill, first perform impair test for asset group or combination of asset groups
without goodwill and calculate the recoverable amount and recognize the related impairment loss. Then conduct
impairment test on those with goodwill, compare the book value with recoverable amount. If the recoverable
amount is lower than the book value, recognize the impairment loss of the goodwill. Once recognized, the asset
impairment loss cannot be written back in subsequent accounting period.
13. Investment real estates
Investment real estates are held for rent or capital appreciation, or both. The Company’s investment real
estates include land use right, land use right held for appreciation and transfer and leased buildings.
For investment real estates with an active real estate transaction market and the Company can obtain market
price and other information of same or similar real estates to reasonably estimate the investment real estates’ fair
value, the Company will use the fair value mode to measure the investment real estates subsequently. Variations
in fair value are accounted into the current gain/loss account.
The fair value of investment real estates is determined with reference to the current market prices of same or
similar real estates in active markets; when no such price is available, with reference to the recent transaction
prices and consideration of factors including transaction background, date and district to reasonably estimate the
fair value; or based on the estimated lease gains and present value of related cash flows.
For an investment real estate whose fair value is proven unable to be obtained continuously and reliably by
objective evidence, the real estate will be measured at cost basis until it is disposed and no residual value remains
as assumed.
The difference of the proceeds from sales, transfer, retirement or destruction of investment real estates with
book value and related taxes deducted is accounted into the current gain/loss account.
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China Fangda Group Co., Ltd. 2013 Interim Financial Statements
14. Fixed assets
(1) Conditions for fixed asset recognition
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 accounting year of service life. The fixed
assets can only be recognized hen economic interests related to the fixed assets are very likely to flow into the
company and the costs of the fixed assets can be reliably measured. The Company measures fixed assets at the
actual costs when the fixed assets are obtained
(3) Recognition and pricing of financing leased fixed assets
The Company measures the leased assets as the lower of the fair value and the present value of minimum lease
payment of the leased assets on the starting date of the lease and records the minimum lease payment as long-term
payable and the difference between the two as unrecognized financing expense. The initial direct expense is
accounted into asset value. Unrecognized financial cost is recognized as financial cost at actual interest basis to
the periods of the leasing period. The Company adopts the depreciation policy same as the self-owned fixed assets
to made provision for depreciation of leased assets.
(3) Depreciation of fixed assets
The Company adopts the straight age average basis to make depreciation provision. The Company will start
to make the depreciation provision when the fixed assets reach the preset serviceable condition and stop to make
the depreciation provision when it is derecognized or categorized as non-current assets held for sales. Without
considering depreciation provision, the Company determines annual depreciation rates for various fixed assets
according to types, predicted service life and residual value:
Type Service year (year) Residual rate % Annual depreciation rate %
Houses & buildings 30-45 10% 2％-2.57%
Equipment & machinery 10 10% 9%
Electronic equipment 5 10% 18%
Transport equipment 5 10% 18%
(4) Impair test and impairment provision for fixed assets
The Company judges whether there is a sign of impairment to assets on the balance sheet day. If such sign
exists, the Company estimates the recoverable amount and conducts the impairment test. Impairment test is
conducted annually for goodwill generated by mergers and intangible assets that have not reached the useful
condition no matter whether the impairment sign exists.
The recoverable amount is determined by the higher of the net of fair value minus disposal expense and the
present value of the predicted future cash flow. The Company estimates the recoverable amount on the individual
asset item basis; whether it is hard to estimate the recoverable amount on the individual asset item basis,
determine the recoverable amount based on the asset group that the assets belong to. The assets group is
determined by whether the main cash flow generated by the group is independent from those generated by other
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China Fangda Group Co., Ltd. 2013 Interim Financial Statements
assets or assets groups.
When the recoverable amount of the assets or assets group is lower than its book value, the Company writes
down the book value to the recoverable amount, the write-down amount is accounted into the current income
account and the assets impairment provision is made.
For goodwill impairment test, the book value of goodwill generated by mergers is amortized through
reasonable measures since the purchase day to related asset groups; those cannot be amortized to related assets
groups are amortized to related combination of asset groups. The related asset groups or combination of asset
groups refer to those that can benefit from the synergistic effect of mergers and must not exceed to the reporting
range determined by the Company.
When the impairment test is conducted, if there is sign of impairment to the asset group or combination of
asset groups related to goodwill, first perform impair test for asset group or combination of asset groups without
goodwill and calculate the recoverable amount and recognize the related impairment loss. Then conduct
impairment test on those with goodwill, compare the book value with recoverable amount. If the recoverable
amount is lower than the book value, recognize the impairment loss of the goodwill.
Once recognized, the asset impairment loss cannot be written back in subsequent accounting period.
(5) Others
For fixed assets for which depreciation provision is made, the depreciation rate will be determined after the
accumulative depreciation provision amount is deducted.
At end of each fiscal year, verification will be made on the useful life, predicted retained value, and
depreciation basis.
The useful life will be adjusted if the useful life is different from the predicted one; the net residual value will
be adjusted if the net residual value is different from the predicted one.
Overhaul cost generated by regular examination on fixed assets is recognized as fixed assets costs when there
is evidence proving that it meets fix assets recognition conditions. If not, it will be accounted into the current
gain/loss account. Depreciation provision will be made for fixed assets between two regular overhauls.
15.Construction in process
(1) Categories of construction in process
The Company recognizes the cost of construction in process according to the actual construction expense,
including necessary engineering expenses, borrowing costs to be capitalized before the engineering reaches the
preset service condition and other related costs.
(2) Standard and timing for transferring construction in process into fixed assets
Construction in process will be transferred to fixed assets when it reaches the preset service condition.
(3) Impair test and impairment provision for construction in process
The Company judges whether there is a sign of impairment to assets on the balance sheet day. If such sign
exists, the Company estimates the recoverable amount and conducts the impairment test.
32
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
The recoverable amount is determined by the higher of the net of fair value minus disposal expense and the
present value of the predicted future cash flow.
When the recoverable amount of the construction in process is lower than its book value, the Company writes
down the book value to the recoverable amount, the write-down amount is accounted into the current income
account and the assets impairment provision is made.
Once recognized, the asset impairment loss cannot be written back in subsequent accounting period.
16. Borrowing expenses
(1) Recognition principles for capitalization of borrowing expenses
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. 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.
(2) During borrowing expense capitalization
When the asset satisfying the capitalizing conditions has reached its usable or sellable status, capitalizing of
borrowing expenses shall be terminated. Borrowing expenses incurred after assets that meet capitalization
conditions reach the service or sales conditions are accounted into the current gain/loss account according to the
actual amounts.
(3) Capitalization suspension 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. During the normal suspension period,
borrowing expenses will be capitalized continuously.
(4) Calculation of the capitalization amount of borrowing expense
17. Biological assets
18. Petroleum assets
19. Intangible assets
(1) Pricing of intangible assets
Intangible assets are initially measured based on costs.
33
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
(2) Useful life of intangible assets with limited useful life
Where the useful life is limited, the intangible assets will be amortized within the predicted useful life by
using the amortization method that can reflect predicted realization way of the economic benefit of the assets;
whether the realization way cannot be reliably confirmed, use the straight-line method. If the useful life is
uncertain, the intangible assets are not amortized.
Items Estimated useful life Basis
Land using right Beneficial age Contract
Patent 10 Forecast beneficial age
Proprietary technology 10 Forecast beneficial age
Software 5, 10 years Forecast beneficial age
Other intangible assets 10 years or beneficial age Forecast beneficial age
(3) Judgment basis of intangible assets without definite useful life
(4) Provision of intangible assets impairment
The Company judges whether there is a sign of impairment to assets on the balance sheet day. If such sign
exists, the Company estimates the recoverable amount and conducts the impairment test.
The recoverable amount is determined by the higher of the net of fair value minus disposal expense and the
present value of the predicted future cash flow. The Company estimates the recoverable amount on the individual
asset item basis; whether it is hard to estimate the recoverable amount on the individual asset item basis,
determine the recoverable amount based on the asset group that the assets belong to. The assets group is
determined by whether the main cash flow generated by the group is independent from those generated by other
assets or assets groups.
When the recoverable amount of the assets or assets group is lower than its book value, the Company writes
down the book value to the recoverable amount, the write-down amount is accounted into the current income
account and the assets impairment provision is made.
Once recognized, the asset impairment loss cannot be written back in subsequent accounting period.
(3) Specific standard for distinguish between research and development stage
(6) Audit of internal research and development expenses
The research expenses are accounted the current gain/loss account.
Development expenses are capitalized if they meet the capitalization conditions; if not, accounted into the
current income account.
Expenses in the development stage capitalized are listed as development expense on the balance sheet and
transferred to intangible assets when the project reaches the useful condition.
34
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
20. Long-term amortizable expenses
The Company’s long-term amortizable expenses are measured at the actual costs and amortized averagely
based on the beneficial term. For long-term amortizable expenses that are not beneficial in the subsequent account
periods, the residual value is fully accounted into the current gain/loss account.
21. Transfer of assets without repurchase conditions
22. Anticipated liabilities
(1) Recognition standards of anticipated liabilities
When responsibilities occurred in connection to contingent issues, and all of the following conditions are
satisfied, they are recognized as expectable 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.
(3) Measurement of anticipated 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.
23. Share payment and equity instruments
(1) Share payment category
(2) Recognition of fair value of equity instruments
(3) Basis for recognition of the best estimation of realizable equity instruments
(4) Related accounting treatment of implementation, modification and suspension share payment plan
24. Repurchase of the Company’s shares
25 Revenue
(1) Specific judgment standard of recognition time of goods sales revenue
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
35
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
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.
(2) Basis for recognition of revenue from demising of asset using rights
The revenue is recognized when the financial benefit in connection with the demising of asset using right
was received and the amount can be reliably measured.
(3) Basis for recognition of revenue from providing of labor services
If they are not in the same year, then use the estimation on percentage basis when it is possible.
The completion percentage is the costs occurred on the total cost.
The reliable estimation of the result of providing of labor service must meet the following conditions: A. the
revenue can be reliably measured; B. the economic benefit is very likely to flow into the company; C. the
completion can be determined reliably; D. costs incurred or will be incurred can be reliably measured.
If the result cannot be reliably estimated, use the service cost amount of the compensation obtained or will be
obtained to recognize the revenue of the providing of labor service and recognize the incurred labor service cost as
the current expense. If no compensation can be obtained for incurred labor service cost, no revenue can be
recognized.
(4) Basis and method for recognition of contract completion progress when the revenue from providing of labor
service and construction contracts is recognized on the competition percentage.
On the balance sheet day, the Company recognizes the contract income and costs using the completion
percentage method if the result of the construction contract can be reliably estimated. If not, such contracts are
treated differently. If the contract cost can be recovered, the revenue is recognized according to the actual contract
costs that can be recovered and the contract cost is recognized as the current expense; if not, the contract cost is
recognized as the current expense and no revenue is recognized.
If the estimated total costs exceed the total revenue, the Company recognizes the estimated loss as the current
expense.
The competition percentage is determined by the share of the costs incurred in the total cost.
The reliable estimation of the result of a construction contract must meet the following conditions: A. the
revenue can be reliably measured; B. the economic benefit is very likely to flow into the company; C. the
completion cost can be clearly distinguished and determined reliably; D. the completion and costs that will be
incurred for completion of the contract can be reliably recognized.
Metro screen door projects of the Company and Shenzhen Fangda Automatic System, and curtain wall
project of 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
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.
36
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Contract costs are direct and indirect expenses occurred since the date when the contract is engaged till the
completion day. The competition percentage is determined by the share of the costs incurred in the 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 the agreed rate. For these construction contracts, income will be recognized when ongoing payment
for the project is received and corresponding costs are transferred.
Revenue of products for domestic sales is recognized when the Company delivers the products and receives
the sales payment or obtains the payment voucher; revenue for products for overseas sales is recognized at
departure of the products.
26. Government subsidy
(1) Type
(2) Accounting method
Government subsidy is only recognized when the required conditions are met and the subsidy is received.
When a government subsidy is monetary capital, it is measured at the received or receivable amount. If there
is objective evidence indicating that the subsidy is given based on fixed amount, it can be measured at the
receivable amount, otherwise it is recognized at the received amount. None monetary capital are measured at fair
value; if no reliable fair value available, recognized at RMB1.
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 current expenses or losses, are recognized as current gain/loss, if used to cover future expenses
or losses, recognized as differed gains, and recorded to current income account to the period when the expenses
are recognized. Government subsidy measured at the nominal amount is accounted into current income
account.
If a recognized government subsidy needs to be returned, if there are relative differed gains, the balance of
differed gains will be setoff, the exceeded part shall be recorded into current income account; if there is no relative
differed gain, record to current income account directly.
27. Deferred income tax assets and deferred income tax liabilities
(1) Basis for recognition of deferred income tax assets
For deductable temporary difference, deductible loss and tax deduction that can be accounted in subsequent years,
the Company recognizes the incurred deferred income tax assets to the extent to the future income tax proceeds
that is very likely to be received for deducting deductable temporary difference, deductable loss and tax deduction,
unless the deductable temporary difference is generated in following transactions: (1) the transaction is not a
merger and the transaction does not affect the accounting profit or taxable proceeds; (2) for the taxable temporary
difference related to investment in subsidiaries, the corresponding deferred income tax assets are recognized when
37
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
the following condition is met: the temporary difference is very likely to be reversed in the foreseeable future and
it is very likely to receive the taxable proceeds that can be used to deduct the deductable temporary difference.
(2) Basis for recognition of deferred income tax liabilities
The taxable temporary difference recognizes the related deferred income tax liabilities, unless the taxable
temporary difference is created by the following transactions: (1) Initial recognition of goodwill, or of assets or
liabilities generated in transactions with the following features: the transaction is not a merger and the transaction
does not affect the accounting profit or taxable proceeds; (2) For taxable temporary difference related to
investment in subsidiaries, the reversal timing for the temporary difference can be controlled and the difference is
unlikely to be reversed in the foreseeable future.
28. Operational leasing and financial leasing
(1) Accounting of operational leasing
The Company as the leasor: 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.
The Company as the leasee: 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 of financial leasing
The Company as the leasor: In financial leasing, the book value of financial rental is the sum of lowest
amount of the rent and the initial expenses since the date when the lease is started. The difference between the
sum of lowest rental, initial direct expense and unsecured balance and the current value is recognized as the
unrealized financial income. Unrealized financial income is recognized as financial income at actual interest basis
to the periods of the leasing period.
The Company as the leasee: The Company measures the leased assets as the lower of the fair value and the
present value of minimum lease payment of the leased assets on the starting date of the lease and records the
minimum lease payment as long-term payable and the difference between the two as unrecognized financing
expense. The initial direct expense is accounted into asset value. Unrecognized financial cost is recognized as
financial cost at actual interest basis to the periods of the leasing period. The Company adopts the depreciation
policy same as the self-owned fixed assets to made provision for depreciation of leased assets.
38
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
(3) Accounting of sale and lease-back
29. Assets held for sales
(1) Recognition standard
(2) Accounting treatment
30. Asset securitization
31. Accounting of hedging
32. Major changes in accounting policies and estimates
Changes in major accounting estimates in the report period
□ Yes √ No
No change in major accounting policies and estimates in the report period
(1) Changes in accounting policies
Changes in major accounting policies in the report period: no
□ Yes √ No
(2) Changes in accounting estimates
Changes in major accounting estimates in the report period
□ Yes √ No
33. Correction of previous accounting faults
Faults in previous accounts in the current report period
□ Yes √ No
None
(1) Retrospective restate method
Faults in adoption of the retrospective restate method in the report period
□ Yes √ No
(2) Prospective application method
Faults in adoption of the prospective application method in the report period
□ Yes √ No
39
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
34. Other major accounting policies, accounting estimates and preparation of financial statements
III. Taxation
1. Major taxes and tax rates
Tax Tax basis Tax rate
VAT Taxable income 6%, 13%, 17%
Business tax Taxable income 3%、5%
City maintenance and construction tax Taxable turnover 7%
Enterprise income tax Taxable income 15%, 25%
2. Tax preference and approval
(1) According to the Certification of High-tech Enterprise issued by Shenzhen Commission of Scientific
Innovation, Shenzhen Commission of Finance, Shenzhen National Tax Bureau, and Shenzhen Local Tax Bureau
on September 12, 2012, Fangda Decoration was entitled to enjoy a tax preference of enterprise income tax of 15%
for three years (2012-2014) since the qualifications were awarded.
(2) According to the Certification of High-tech Enterprise issued by Shenzhen Commission of Scientific
Innovation, Shenzhen Commission of Finance, Shenzhen National Tax Bureau, and Shenzhen Local Tax Bureau
on September 12, 2012, Fangda Automation was entitled to enjoy a tax preference of enterprise income tax of
15% for three years (2012-2014) since the qualifications were awarded.
(3) According to the Certification of High-tech Enterprise issued by Jiangxi Department of Science and
Technology, Jiangxi Finance Department, Jiangxi National Tax Bureau, and Jiangxi Local Tax Bureau on
November 7, 2012, Jiangxi New Material was entitled to enjoy a tax preference of enterprise income tax of 15%
for three years (2012-2014) since the qualifications were awarded.
IV Merger of enterprises and consolidated financial statements
1. Subsidiaries
(1) Subsidiaries founded or acquired from investment
In RMB
The
Balance Amount
balance
Actual of other for
of the
investm items Consoli Minor deductin
Register Register Shareho Proporti owners’
Subsidia Owners Busines Busines ent at composi date sharehol g
ed ed lding on of interest
ry hip type s s scope the end ng net stateme ders’ minority
address capital (%) votes % in the
of the investm nts equity gain/los
parent
period ent in s in the
after
subsidia minority
deductin
40
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
ries interests g the
excessiv
e part of
the loss
shared
by
minority
sharehol
ders
over the
share of
profits
in the
owners’
interest
in the
subsidia
ry of
minority
sharehol
der at
the
beginni
ng of
the year
Shenzhe Designi Designi
n ng, ng,
Fangda manufac manufac
Fully-o
Decorati turing, turing,
wned Shenzhe 310,000 310,000
on and and 100% 100% Yes
subsidia n ,000.00 ,000.00
Enginee installati installati
ry
ring on of on of
Co., curtain curtain
Ltd. walls walls
Design,
Shenzhe
Installat processi
n
ion and ng and
Fangda Fully-o
processi installati
Automa wned Shenzhe 105,000 183,777
ng of on of 100% 100% Yes
tic subsidia n ,000.00 ,271.73
metro railway
System ry
screen screen
Co.,
door door
Ltd.
systems
41
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
R&D,
Producti
design
Shenzhe on and
and
n distribut
producti
Fangda Fully-o ion of
USD3,2 on of
Yide wned Shenzhe new-typ 3,200,0
00,000. new-typ 100% 100% Yes
New subsidia n e 00.00
00 e
Material ry composi
composi
Co., te
te
Ltd. material
material
s
s
Producti
on and
sales of
new-typ
e
material
s,
composi
Producti te
on and material
sales of s,
new-typ producti
Fangda e on of
New material curtain
Fully-o
Material s USD12, walls,
wned Nancha 12,000,
s composi 000,000 window 100% 100% Yes
subsidia ng 000.00
(Jiangxi te .00 s, metal
ry
) Co., material structur
Ltd. s and es and
producti compon
on of ents,
curtain metal
walls products
and
environ
mental
protecti
on
material
s and
products
Jiangxi Fully-o Nancha Design, 20,000, Design, 20,000, 100% 100% Yes
42
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Fangda wned ng producti 000.00 producti 000.00
New subsidia on, sales on, sales
Type ry and and
Alumin installati installati
um Co., on of on of
Ltd. curtain curtain
wall wall
alumini alumini
um um
material material
s, doors, s, doors,
window window
s and s and
sectiona sectiona
l l
material material
s s
Hong
Kong Fully-o
Junjia wned Hong Investm HKD10, Investm 10,000.
100% 100% Yes
Group subsidia Kong ent 000.00 ent 00
Co., ry
Ltd.
Manufa Manufa
cturing cturing
of of
semicon semicon
ductor ductor
lighting lighting
Shenyan material material
g and and
Fangda Controll chips; chips;
Semi-co ed Shenyan lighting 200,000 lighting 108,852 57,882, -1,825,5
64.58% 64.58% Yes
nductor subsidia g source ,000.00 source ,073.85 977.20 53.91
Lighting ries encapsu encapsu
Co., lation; lation;
Ltd. developi developi
ng, ng,
designin designin
g, g,
manufac manufac
turing, turing,
engineer engineer
43
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
ing, ing,
installati installati
on and on and
trading trading
of of
semicon semicon
ductor ductor
lighting lighting
system system
Comput
er
software
and
hardwar
Develop e
ing of develop
hardwar ment
Shenzhe
e and and
n
Fully-o software sales,
Kexund
wned Shenzhe , system 1,000,0 compute 1,000,0
a 100% 100% Yes
subsidia n integrati 00.00 r 00.00
Softwar
ry on, software
e Co.,
technica develop
Ltd.
l ment,
consulti system
ng integrati
on and
technica
l
consulti
ng
Develop Develop
ment ment
Shenzhe and and
n operatin operatin
Fangda Fully-o g of real g of real
Property wned Shenzhe estate 50,000, estate 50,000,
100% 100% Yes
Develop subsidia n on land 000.00 on land 000.00
ment ry of of
Co., which which
Ltd. land use land use
right is right is
legally legally
44
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
obtained obtained
by the by the
Compan Compan
y; y;
property property
manage manage
ment ment
Notes to subsidiaries founded or acquired from investment
None
(2) Subsidiaries acquired by mergers of companies under the common control
None
(3) Subsidiaries acquired by mergers of companies not under the common control
None
2. Operational entities of control powers generated by special purpose entities or trust operation or lease
None
3. Notes to changes in the consolidation scope
None
□ Applicable √ Inapplicable
4. New entities added to the consolidation and removed from the consolidation during the report period
None
5. Merger of companies under the common control during the report period
None
6. Merger of companies not under the common control during the report period
None
7. Subsidiaries lost due to loss of control in shares during the report period
None
45
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
8. Repurchase in the report period
None
9. Merger by absorption in the report period
None
10. Foreign exchange rate of major statement items of overseas operational entities
None
V Notes to the consolidated financial statements
1. Monetary capital
In RMB
Closing amount Opening amount
Items Foreign Exchange Foreign Exchange
RMB RMB
exchange rate exchange rate
Cash: -- -- 17,785.62 -- -- 10,565.48
RMB -- -- 17,303.26 -- -- 9,340.48
HK Dollar 566.96 0.85 482.36 1,510.76 0.81 1,225.00
Bank deposits: -- -- 259,725,449.78 -- -- 252,155,936.57
RMB -- -- 259,724,326.47 -- -- 252,087,857.82
US Dollar 0.99 6.18 6.12 10,831.08 6.29 68,078.75
Canadian Dollar 230.49 4.85 1,117.19 0.00 0.00 0.00
Other monetary capital: -- -- 54,991,866.96 -- -- 26,117,466.56
RMB -- -- 54,991,056.74 -- -- 26,116,643.85
US Dollar 131.13 6.18 810.22 130.89 6.29 822.71
Total -- -- 314,735,102.36 -- -- 278,283,968.61
1. RMB12 million among the balance of bank deposit at end of year was frozen by the court for the lawsuit
involved by Fangda Decoration.
2. The book balance of other monetary fund of RMB54,991,866.96 by the end of the year mainly includes
bank acceptance, deposit for bank accepted notes and purchased financial products. When the cash flow statement
is prepared, bank acceptance and deposit for bank accepted notes and the above-mentioned frozen deposit will not
be accounted as cash equivalent.
46
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
2. Transactional financial assets
(1) Transactional financial assets
None
(2) Transactional financial assets with realization limitation
None
(3) Notes to hedging tools and related hedging transactions
None
3. Notes receivable
(1) Classification of notes receivable
In RMB
Type Closing amount Opening amount
Bank acceptance 4,006,417.51 5,668,780.88
Commercial acceptance 1,970,000.00 1,970,000.00
Total 5,976,417.51 7,638,780.88
(2) Pledged notes receivable at the end of period
None
(3) Notes of which the issuer is unable to perform and transferred into account receivable, and notes endorsed to
other parties but remains immature
Notes transferred into account receivable due to the failure of the issuer to perform
Notes endorsed to other parties but remaining immature
In RMB
Issuer Date of issue Due date Amount Notes
CRCC 11 Construction
and Installation April 23, 2013 October 23, 2013 2,000,000.00
Engineering Co., Ltd.
Nanjing Xinjiekou
Department Store Co., January 24, 2013 July 24, 2013 872,582.62
Ltd.
Zhejiang Jiayue February 6, 2013 August 6, 2013 800,000.00
47
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Industrial Co., Ltd.
China Construction
(Changsha) Fuji Curtain
May 30, 2013 November 30, 2013 780,000.00
Wall Decoration Co.,
Ltd.
China Construction 3rd
May 27, 2013 August 27, 2013 602,941.62
Decoration Co., Ltd.
Total -- -- 5,055,524.24 --
Notes to discounted or pledge commercial acceptance
The commercial acceptance worth RMB1.97 million received from Shenzhen Vanke Binhai Real Estate
Development has not matured but has been discounted.
4. Receivable dividend
None
5. Receivable interest
(1) Receivable interest
In RMB
Items Opening amount Increase Decrease Closing amount
Deposit interest 72,833.33 233,765.31 286,015.31 20,583.33
Total 72,833.33 233,765.31 286,015.31 20,583.33
(2) Overdue interest
None
(3) Notes to receivable interest
None
6. Account receivable
(1) Account receivable disclosed by categories
In RMB
Closing amount Opening amount
Type Remaining book value Bad debt provision Remaining book value Bad debt provision
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
48
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
(%) (%) (%) (%)
Account receivable with
major individual amount 8,819,368.5 4,646,868.1 9,063,813
0.85% 52.69% 0.97% 4,399,850.00 48.54%
and bad debt provision 1 8 .50
provided individually
Account receivable for which bad debt provision is made by group
Including: receivable out 1,004,826,4 138,296,53 902,557,0 132,330,232.
97.07% 13.76% 96.68% 14.66%
of the consolidation 99.62 9.73 74.71 91
1,004,826,4 138,296,53 902,557,0 132,330,232.
Subtotal 97.07% 13.76% 96.68% 14.66%
99.62 9.73 74.71 91
Account receivable with
minor individual amount 21,520,793. 21,520,793. 21,956,50 21,956,506.8
2.08% 100% 2.35% 100%
and bad debt provision 22 22 6.84 4
provided individually
1,035,166,6 164,464,20 933,577,3 158,686,589.
Total -- -- -- --
61.35 1.13 95.05 75
Notes to account receivable
The Company divides receivable accounts into project receivables and product receivables. Project receivables are
those recognized at percentage according to the construction contract, product receivables are those formed in
other ways.
For the current year, the Company recognizes project receivables over RMB8 million (inclusive) as “individual
receivable with large amount” while recognizes product receivables over RMB2 million (included) as “individual
receivable with large amount”.
Account receivable with major individual amount and bad debt provision provided individually at the end of the
period
√ Applicable □ Inapplicable
In RMB
Remaining book
Description Bad debt provision Providing rate (%) Reason
value
Most likely
recoverable amount
according to the
arbitration
Gulf international trading FZE 8,819,368.51 4,646,868.18 52.69%
agreement, bad debt
provision for forecast
unrecoverable
amount
Total 8,819,368.51 4,646,868.18 -- --
In the group, the account receivable of which bad debt provision is made through the account aging method:
√ Applicable □ Inapplicable
49
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
In RMB
Closing amount Opening amount
Remaining book value Remaining book value
Age
Proportion Bad debt provision Proportion Bad debt provision
Amount Amount
(%) (%)
Less than 1 year
Including: -- -- -- -- -- --
Subtotal for less
515,040,571.00 49.75% 15,361,307.17 457,699,537.55 49.03% 13,730,986.12
than 1 year
1-2 years 262,392,504.82 25.35% 26,251,856.47 239,346,914.90 25.64% 23,934,691.50
2-3 years 85,066,676.94 8.22% 25,520,003.09 40,453,779.30 4.33% 12,136,133.80
Over 3 years 142,326,745.97 13.75% 71,163,373.00 165,056,842.96 17.68% 82,528,421.49
3-4 years 38,568,791.76 3.73% 19,284,395.88 52,041,465.65 5.58% 26,020,732.83
4-5 years 48,118,094.78 4.65% 24,059,047.40 44,852,453.92 4.8% 22,426,226.96
Over 5 years 55,639,859.43 5.37% 27,819,929.72 68,162,923.39 7.3% 34,081,461.70
Total 1,004,826,499.62 -- 138,296,539.73 902,557,074.71 -- 132,330,232.91
Account receivable adopting the balance percentage method in the group
□ Applicable √ Inapplicable
Account receivable adopting other methods in the group
□ Applicable √ Inapplicable
Account receivable with minor individual amount and bad debt provision provided individually
√ Applicable □ Inapplicable
In RMB
Description Remaining book value Bad debt provision Providing rate (%) Reason
Aged over 5 years, unlike
Trade receivable 1,373,041.48 1,373,041.48 100%
to be recovered
Aged over 5 years, unlike
Trade receivable 803,340.45 803,340.45 100%
to be recovered
Curtain wall project Aged over 5 years, unlike
660,625.41 660,625.41 100%
payment to be recovered
Aged over 5 years, unlike
Trade receivable 648,100.95 648,100.95 100%
to be recovered
Litigation-related,
Trade receivable 563,320.60 563,320.60 100%
unlikely to be recovered
Aged over 5 years, unlike
Trade receivable 487,785.66 487,785.66 100%
to be recovered
Trade receivable 433,868.60 433,868.60 100% Aged over 5 years, unlike
50
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
to be recovered
Aged over 5 years, unlike
Trade receivable 430,629.58 430,629.58 100%
to be recovered
Aged over 5 years, unlike
Trade receivable 337,968.00 337,968.00 100%
to be recovered
Subtotal of other minor Aged over 5 years, unlike
15,782,112.49 15,782,112.49 100%
receivables to be recovered
Total 21,520,793.22 21,520,793.22 -- --
(2) Written-back or recovered account receivable during the report period
In RMB
Basis for recognition of Accumulative provided
Written-back or
Description Reason original bad debt amount before the
recovered amount
provision write-back or recovery
Lawsuit, unlike to
Loan Loan recovered 435,713.62 250,000.00
recover
Total -- -- 435,713.62 --
Bad debt provision for account receivable with major individual amount or with minor individual amount but independent
impairment test
In RMB
Description Remaining book value Bad debt amount Providing rate (%) Reason
Provided based on the
Engineering receivables 40,277,753.78 1,208,332.61 3% account age in the
normal settlement period
Provided based on the
Engineering receivables 29,029,057.98 870,871.74 3% account age in the
normal settlement period
Provided based on the
Engineering receivables 27,545,878.83 1,418,157.36 5.15% account age in the
normal settlement period
Provided based on the
Engineering receivables 26,428,063.73 4,556,395.93 17.24% account age in the
normal settlement period
Provided based on the
Engineering receivables 22,711,356.02 4,542,271.20 20% account age in the
normal settlement period
Provided based on the
Engineering receivables 22,649,465.92 1,260,109.61 5.56%
account age in the
51
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
normal settlement period
Provided based on the
Engineering receivables 21,669,336.58 4,086,918.21 18.86% account age in the
normal settlement period
Provided based on the
Engineering receivables 21,604,598.64 648,137.96 3% account age in the
normal settlement period
Provided based on the
Engineering receivables 20,266,534.66 1,094,651.59 5.4% account age in the
normal settlement period
Provided based on the
Engineering receivables 19,232,216.37 1,250,094.06 6.5% account age in the
normal settlement period
Provided based on the
Engineering receivables 18,822,892.79 3,750,555.85 19.93% account age in the
normal settlement period
Provided based on the
Engineering receivables 16,469,145.03 494,074.35 3% account age in the
normal settlement period
Provided based on the
Engineering receivables 15,208,841.42 456,265.24 3% account age in the
normal settlement period
Provided based on the
Engineering receivables 12,411,036.73 2,232,304.49 17.99% account age in the
normal settlement period
Provided based on the
Engineering receivables 12,352,763.48 802,929.63 6.5% account age in the
normal settlement period
Provided based on the
Engineering receivables 11,964,156.25 777,670.16 6.5% account age in the
normal settlement period
Provided based on the
Engineering receivables 11,462,804.94 343,884.15 3% account age in the
normal settlement period
Provided based on the
Engineering receivables 10,367,025.03 1,918,471.04 18.51% account age in the
normal settlement period
Provided based on the
Engineering receivables 9,550,635.11 286,519.05 50% account age in the
normal settlement period
52
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Provided based on the
Engineering receivables 9,460,014.73 415,669.74 4.39% account age in the
normal settlement period
With an account age of
Engineering receivables 8,324,246.86 4,162,123.43 50%
over 3 years
Provided based on the
Engineering receivables 8,235,152.91 501,060.98 6.08% account age in the
normal settlement period
Aged over 5 years, unlike
Trade receivable 1,373,041.48 1,373,041.48 100%
to be recovered
Aged over 5 years, unlike
Trade receivable 803,340.45 803,340.45 100%
to be recovered
Curtain wall project Aged over 5 years, unlike
660,625.41 660,625.41 100%
payment to be recovered
Aged over 5 years, unlike
Trade receivable 648,100.95 648,100.95 100%
to be recovered
Litigation-related,
Trade receivable 563,320.60 563,320.60 100%
unlikely to be recovered
Aged over 5 years, unlike
Trade receivable 487,785.66 487,785.66 100%
to be recovered
Aged over 5 years, unlike
Trade receivable 433,868.60 433,868.60 100%
to be recovered
Aged over 5 years, unlike
Trade receivable 430,629.58 430,629.58 100%
to be recovered
Aged over 5 years, unlike
Trade receivable 337,968.00 337,968.00 100%
to be recovered
Subtotal of other minor Aged over 5 years, unlike
15,782,112.49 15,782,112.49 100%
receivables to be recovered
Total 417,563,771.01 58,598,261.60 -- --
Notes to account receivable with minor individual amount but triggering substantial risks after being grouped
(3) Written-off account receivable during the report period
None
(4) Shareholder holding 5% or above shares with voting rights of the Company and owing any account receivable
to the Company at the end of period
None
53
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
(5) Top 5 account receivable entities
In RMB
Relationship with the Percentage in the total
Entity Amount Term
Company account receivable (%)
Nanjing News Center Non-affiliated party 40,277,753.78 Less than 1 year 3.89%
Zhangzhou Hilton Non-affiliated party 29,029,057.98 Less than 1 year 2.8%
Shenzhen Airport T3
Non-affiliated party 27,545,878.83 1-2 years 2.66%
Terminal
Shenyang National
Non-affiliated party 27,409,559.37 Less than 1 year 2.65%
Games Operation Center
Sanya Fenghuang Island
curtain wall 1# and 2# Non-affiliated party 26,428,063.73 2-3 years 2.55%
building
Total -- 150,690,313.69 -- 14.55%
(6) Account receivable from affiliates
None
(7) De-recognized account receivable
None
(8) Amounts of assets and liabilities involved continuously in securitization of account receivable
None
7. Other receivables
(1) Other receivables disclosed by categories
In RMB
Closing amount Opening amount
Remaining book value Bad debt provision Remaining book value Bad debt provision
Type
Proportio Proportio Proportion Proportio
Amount Amount Amount Amount
n (%) n (%) (%) n (%)
Other receivables with
major individual amount
1,220,316.84 1.43% 1,220,316.84 100% 1,220,316.84 1.68% 1,220,316.84 100%
and bad debt provision
provided individually
54
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Other receivables for which bad debt provision is made by group
Including: receivable out 81,373,109.2 13,150,647.4 68,469,392.4
95.19% 16.16% 94.33% 11,129,836.15 16.26%
of the consolidation 2 1 3
81,373,109.2 13,150,647.4 68,469,392.4
Subtotal 95.19% 16.16% 94.33% 11,129,836.15 16.26%
2 1 3
Other receivables with
minor individual amount
2,895,928.16 3.39% 2,895,928.16 100% 2,895,928.16 3.99% 2,895,928.16 100%
and bad debt provision
provided individually
85,489,354.2 17,266,892.4 72,585,637.4
Total -- -- -- 15,246,081.15 --
2 1 3
Notes to other receivables
Other receivables with an individual amount of RMB1 million (inclusive) are receivables with major individual
amount.
Other receivables with major individual amount and bad debt provision provided individually at the end of the
period
√ Applicable □ Inapplicable
In RMB
Description Remaining book value Bad debt amount Providing rate (%) Reason
Aged over 5 years, unlike
Receivable deposit 1,220,316.84 1,220,316.84 100%
to be recovered
Total 1,220,316.84 1,220,316.84 -- --
In the group, the other receivables of which bad debt provision are made through the account aging method
√ Applicable □ Inapplicable
In RMB
Closing amount Opening amount
Remaining book value Remaining book value
Age
Proporti Bad debt provision Proporti Bad debt provision
Amount Amount
on (%) on (%)
Less than 1 year
Including:
Subtotal for less than 1
38,163,710.08 44.64% 1,149,597.82 31,319,141.04 43.15% 942,761.14
year
1-2 years 19,564,199.05 22.88% 1,956,419.90 18,616,091.35 25.64% 1,861,609.14
2-3 years 8,889,850.43 10.4% 2,666,955.12 4,708,070.26 6.49% 1,412,421.08
Over 3 years 14,755,349.66 17.26% 7,377,674.56 13,826,089.78 19.05% 6,913,044.79
3-4 years 3,956,200.34 4.63% 1,978,100.17 5,706,414.82 7.86% 2,949,520.79
55
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
4-5 years 3,935,685.74 4.6% 1,967,842.87 2,220,633.18 3.06% 1,110,316.59
Over 5 years 6,863,463.58 8.03% 3,431,731.52 5,899,041.78 8.13% 2,853,207.41
Total 81,373,109.22 -- 13,150,647.41 68,469,392.43 -- 11,129,836.15
Other receivables adopting the balance percentage method in the group
□ Applicable √ Inapplicable
Other receivables adopting other methods in the group
□ Applicable √ Inapplicable
Other receivables with minor individual amount and bad debt provision provided individually
√ Applicable □ Inapplicable
In RMB
Description Remaining book value Bad debt provision Providing rate (%) Reason
Aged over 5 years, unlike
Receivable deposit 300,000.00 300,000.00 100%
to be recovered
Aged over 5 years, unlike
Receivable deposit 224,875.84 224,875.84 100%
to be recovered
Aged over 5 years, unlike
Receivable deposit 159,800.00 159,800.00 100%
to be recovered
Aged over 5 years, unlike
Receivable deposit 150,000.00 150,000.00 100%
to be recovered
Aged over 5 years, unlike
Trade receivable 101,282.55 101,282.55 100%
to be recovered
Total of other small Aged over 5 years, unlike
1,959,969.77 1,959,969.77 100%
amounts to be recovered
Total 2,895,928.16 2,895,928.16 -- --
(2) Written-back or recovered other receivables during the report period
None
Bad debt provision for other receivables with major individual amount or with minor individual amount but
independent impairment test
In RMB
Description Remaining book value Bad debt amount Providing rate (%) Reason
Aged over 5 years,
Receivable deposit 1,220,316.84 1,220,316.84 100%
unlike to be recovered
Normal, provided by the
Receivable deposit 1,800,000.00 180,000.00 10%
account age
Normal, provided by the
Receivable deposit 1,120,543.15 336,162.95 30%
account age
56
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Normal, provided by the
Receivable deposit 1,100,000.00 330,000.00 30%
account age
Normal, provided by the
Receivable deposit 6,898,000.00 689,800.00 10%
account age
Normal, provided by the
Receivable deposit 3,158,000.00 94,740.00 3%
account age
Normal, provided by the
Receivable deposit 2,278,926.90 683,678.07 30%
account age
Normal, provided by the
Receivable deposit 1,907,624.65 57,228.74 3%
account age
Normal, provided by the
Receivable deposit 1,720,000.00 51,600.00 3%
account age
Aged over 5 years,
Receivable deposit 300,000.00 300,000.00 100%
unlike to be recovered
Aged over 5 years,
Receivable deposit 224,875.84 224,875.84 100%
unlike to be recovered
Aged over 5 years,
Receivable deposit 159,800.00 159,800.00 100%
unlike to be recovered
Aged over 5 years,
Receivable deposit 150,000.00 150,000.00 100%
unlike to be recovered
Aged over 5 years,
Trade receivable 101,282.55 101,282.55 100%
unlike to be recovered
Total of other small Aged over 5 years,
1,959,969.77 1,959,969.77 100%
amounts unlike to be recovered
Total 24,099,339.70 6,539,454.76 -- --
Notes to other receivables with minor individual amount but triggering substantial risks after being grouped
None
(3) Written-off other receivables during the report period
None
(4) Shareholder holding 5% or above shares with voting rights of the Company and owing any other receivables to
the Company at the end of period
None
(5) Nature and description of major other receivables
None
57
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
(6) Top 5 other receivable entities
In RMB
Relationship with the Percentage in the total
Entity Amount Term
Company other receivables (%)
Zhejiang Jiayue
Non-affiliated party 6,898,000.00 1-2 years 8.07%
Industrial Co., Ltd.
Hainan Greentown Gaodi
Non-affiliated party 3,158,000.00 Less than 1 year 3.69%
Investment Co., Ltd.
Xin Song Non-affiliated party 2,707,327.61 2-3 years 3.17%
Nanjing Xinhua Daily
Non-affiliated party 2,451,804.00 Less than 1 year 2.87%
(Nanjing News Center)
Wang Weihong Non-affiliated party 2,441,865.93 1-3 years 2.86%
Total -- 17,656,997.54 -- 20.66%
(7) Other receivables from affiliates
None
(8) De-recognized other receivables
None
(9) Amounts of assets and liabilities involved continuously in securitization of other receivables
None
8. Prepayment
(1) Account age of prepayments
In RMB
Closing amount Opening amount
Age Proportion Proportion
Amount Amount
(%) (%)
Less than 1
23,180,856.69 90.81% 19,468,827.77 88.47%
year
1-2 years 646,542.87 2.53% 1,166,643.73 5.3%
2-3 years 744,279.73 2.92% 373,124.18 1.7%
Over 3 years 954,288.90 3.74% 997,563.54 4.53%
58
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Total 25,525,968.19 -- 22,006,159.22 --
(2) Top 5 prepayment entities
In RMB
Relationship with the
Entity Amount Time Reason
Company
Henan Tiancheng Color
Non-affiliated party 2,484,602.43 Less than 1 year Unsettled
Aluminum Co., Ltd.
Litong Aluminum
Industry (Guangdong) Non-affiliated party 1,674,860.25 Less than 1 year Unsettled
Co., Ltd.
Qinghuangdao Wanxiang
Non-affiliated party 1,070,751.02 Over 3 years Unsettled
Aluminum Co., Ltd.
Guangdong Xingfa Right to the cargo not
Non-affiliated party 1,282,943.29 Less than 1 year
Aluminium Co., Ltd. transferred
Yantai Kaichen Labor
Non-affiliated party 1,010,000.00 Less than 1 year Unsettled
Service Co., Ltd.
Total -- 7,523,156.99 -- --
(3) Shareholders holding 5% or above shares with voting rights of the Company and involved in any prepayment
of the Company at the end of period
In RMB
Closing amount Opening amount
Entity Bad debt provision Bad debt provision
Remaining book value Remaining book value
amount amount
(4) Notes to prepayment
None
9. Inventories
(1) Classification of inventories
In RMB
Closing amount Opening amount
Items
Remaining book Depreciation Book value Remaining book Depreciation Book value
59
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
value provision value provision
Raw materials 52,110,749.88 1,474,828.11 50,635,921.77 43,426,271.98 1,474,828.11 41,951,443.87
Product in process 7,214,876.34 7,214,876.34 6,219,310.56 6,219,310.56
Finished goods in
15,675,036.22 1,984,145.11 13,690,891.11 10,455,612.27 1,984,145.11 8,471,467.16
stock
Asset formed by
206,084,359.94 2,014,344.59 204,070,015.35 212,353,564.65 2,014,344.59 210,339,220.06
construction contract
Low price
1,081.82 1,081.82 8,043.45 8,043.45
consumable
OEM materials 1,832,348.34 1,832,348.34 2,130,706.26 2,130,706.26
Development cost 573,019.83 573,019.83
Total 283,491,472.37 5,473,317.81 278,018,154.56 274,593,509.17 5,473,317.81 269,120,191.36
(2) Inventory depreciation provision
In RMB
Opening balance of Provision made in Decrease Closing balance of
Item
book value the current period Write-back Write-off book value
Raw materials 1,474,828.11 1,474,828.11
Finished goods in
1,984,145.11 1,984,145.11
stock
Asset formed by
2,014,344.59 2,014,344.59
construction contract
Total 5,473,317.81 5,473,317.81
(3) Inventory depreciation provision
Proportion of written-back
Items Basis Reason amount in the closing balance
of the inventory item (%)
Realizable net value is lower
Raw materials
the cost
10. Other current assets
None
60
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
11. Sellable financial assets
(1) Sellable financial assets
None
(2) Long-term creditor's investment in sellable financial assets
None
12. Investment held until mature
(1) Investment held until mature
None
(2) Investment held until mature remaining immature and sold in the report period
None
13. Long-term receivables
None
14. Investment in joint venture and associated companies
None
15. Long-term share equity investment
(1) Details of long-term share equity investment
None
(2) Restriction for transfer of capital to invested companies
None
16. Investment real estates
(1) Investment real estate measured at costs
In RMB
Items Opening balance of book Increase Decrease Closing balance of book
61
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
value value
1. Original total book
4,428,890.85 4,428,890.85
value
1. Houses & buildings 4,428,890.85 4,428,890.85
II Accumulative total
depreciation and 789,385.09 57,481.44 846,866.53
amortization
1. Houses & buildings 789,385.09 57,481.44 846,866.53
III Total net book
value of investment 3,639,505.76 -57,481.44 3,582,024.32
real estate
1. Houses & buildings 3,639,505.76 -57,481.44 3,582,024.32
IV Total book value of
3,639,505.76 -57,481.44 3,582,024.32
investment real estate
1. Houses & buildings 3,639,505.76 -57,481.44 3,582,024.32
In RMB
Current period
Depreciation and amortized amount for the current period 57,481.44
(2) Investment real estate measured at fair value
In RMB
Increase Decrease
Transferred Gain/loss
Opening fair Closing fair
Items from own caused by Transferred
value Purchased Disposal value
use or changes in to own use
inventory fair value
182,729,175. 182,729,17
1. Total costs
48 5.48
182,729,175. 182,729,17
(1) Houses & buildings
48 5.48
72,037,080.8 72,037,080.
2. Total changes in fair value
5 85
72,037,080.8 72,037,080.
(1) Houses & buildings
5 85
3. Total book value of investment 254,766,256. 254,766,25
real estate 33 6.33
(1) Houses & buildings 254,766,256. 254,766,25
62
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
33 6.33
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 period was
RMB32,057,585.40. After the renovation, the Company will not apply for an ownership certificate.
17. Fixed assets
(1) Fixed assets
In RMB
Opening balance Closing balance of
Items Increase Decrease
of book value book value
1. Original total book value: 579,485,800.91 185,320,124.30 9,641,638.89 755,164,286.32
Houses & buildings 287,520,705.05 174,970,065.73 0.00 462,490,770.78
Equipment &
237,818,748.42 6,983,181.63 8,264,173.18 236,537,756.87
machinery
Transportation
15,786,606.33 1,128,593.04 1,055,882.78 15,859,316.59
facilities
Electronics and other
38,359,741.11 2,238,283.90 321,582.93 40,276,442.08
devices
Opening balance
-- Increase Provision Decrease Closing balance
of book value
2. Total accumulative
222,752,425.18 10,319,840.12 7,416,925.71 225,655,339.59
depreciation:
Houses & buildings 39,324,489.23 4,031,524.75 0.00 43,356,013.98
Equipment &
154,763,867.26 2,851,168.10 6,578,250.70 151,036,784.66
machinery
Transportation
8,305,922.46 754,987.89 584,789.99 8,476,120.36
facilities
Electronics and other
20,358,146.23 2,682,159.38 253,885.02 22,786,420.59
devices
Opening balance
-- -- Closing balance
of book value
3. Total net fixed assets
356,733,375.73 -- 529,508,946.73
book value
Houses & buildings 248,196,215.82 -- 419,134,756.80
Equipment &
83,054,881.16 -- 85,500,972.21
machinery
63
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Transportation
7,480,683.87 -- 7,383,196.23
facilities
Electronics and other
18,001,594.88 -- 17,490,021.49
devices
4. Total impairment
15,177,565.52 -- 15,135,387.93
provision
Houses & buildings 1,131,563.50 -- 1,131,563.50
Equipment &
14,046,002.02 -- 14,003,824.43
machinery
Electronics and other
--
devices
5. Total fixed assets book
341,555,810.21 -- 514,373,558.80
value
Houses & buildings 247,064,652.32 -- 418,003,193.30
Equipment &
69,008,879.14 -- 71,497,147.78
machinery
Transportation
7,480,683.87 -- 7,383,196.23
facilities
Electronics and other
18,001,594.88 -- 17,490,021.49
devices
The depreciation amounts to RMB10,319,840.12. The original value of transfer of construction progress into the
fixed original assets amounts to RMB174,951,006.71.
(2) Temporary idle fixed assets
In RMB
Accumulative Impairment
Items Book value Net book value Notes
depreciation provision
Houses & buildings 46,273,742.05 3,029,722.87 277,744.50 42,966,274.68
Equipment &
105,602,040.98 62,096,527.67 12,648,794.93 30,856,718.38
machinery
Transportation
358,087.84 334,308.75 23,779.09
facilities
Electronics and other
7,800,618.30 5,429,615.90 2,371,002.40
devices
Total 160,612,095.03 70,890,175.19 12,926,539.43 76,217,774.55
64
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
(3) Fixed assets leased through financial leasing
In RMB
Items Book value Accumulative depreciation Net book value
Electronics and other devices 24,500.00 6,282.00 18,218.00
(4) Fixed assets lend through financial leasing
None
(5) Fixed assets held for sales at the end of the period
None
(6) Fixed assets without ownership certificate
Items Reason Time
Houses in Urumuqi for offsetting debt Historical reasons
Complex on the Beihuan Road, Nanshan
To be renovated
District, Shenzhen
Office building on the Beihuan Road,
To be renovated
Nanshan District, Shenzhen
No.5 automatic screen door factory,
Nanchang Fangda High-tech park of Applying for The certificate can be obtained in 2013
Fangda Automatic
Houses in Dalian of Fangda Decoration for
Negotiation The certificate can be obtained in 2014
offsetting debt
No.2 factory on Beihuan Road, Nanshan
To be renovated
District, Shenzhen
No.3 factory on Beihuan Road, Nanshan
To be renovated
District, Shenzhen
Expanded workshop, dormitory and
Entering into liquidation
canteen of Shenyang Fangda
Plant, dormitory and canteen of Dongguan Newly built, with the ownership certificate
production base being applied for
18.Construction in process
(1) Construction in progress
In RMB
65
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Closing amount Opening amount
Items Remaining Impairment Remaining Impairment
Book value Book value
book value provision book value provision
Fangda Town reconstruction
1,701,315.00 1,701,315.00 1,701,315.00 1,701,315.00
project
Liuxi spraying line renovation 1,466,675.36 1,466,675.36
Dongguan Songshan Lake
Fangda Southern Technology 173,369,430.56 173,369,430.56
Garden
Installation of machines and
465,500.28 465,500.28 67,948.72 67,948.72
equipment
Total 3,633,490.64 3,633,490.64 175,138,694.28 175,138,694.28
(2) Changes in major construction in process
In RMB
Proportio Includin
n of g:
Accumul
Transferr engineeri capitaliz Interest
ative
Opening ed into Other ng Project ed capitaliz Capital Closing
Item Budget Increase capitaliz
amount fixed decrease investme progress interest ation rate source amount
ed
assets nt in the for the (%)
interest
budget current
(%) period
Donggua
n
Songsha
n Lake
181,194, 173,369, 1,581,57 174,951, Raised
Fangda 90.57% 100 0.00
644.92 430.56 6.15 006.71 fund
Southern
Technolo
gy
Garden
181,194, 173,369, 1,581,57 174,951,
Total -- -- -- -- 0.00
644.92 430.56 6.15 006.71
The Dongguan Songshanhu Fangda Southern Sci & Tech Park will be accounted as fixed assets after it is
constructed and can be put into use.
(3) Impairment provisions for construction in process
None
66
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
(4) Progress of major construction in process
None
(5) Notes to construction in process
None
19. Engineering materials
None
20. Disposal of fixed assets
In RMB
Items Opening book value Closing book value Reason for disposal
Retirement of computers and
0.00 1,676.00 Unsettled fixed assets retired
air-conditioners
Total 1,676.00 --
21. Productive biological assets
None
22. Petroleum assets
None
23. Intangible assets
(1) Intangible assets
In RMB
Opening balance of Closing balance of book
Items Increase Decrease
book value value
1. Original total book value 140,737,338.14 47,830.18 140,785,168.32
Land using rights of Fangda
8,543,250.00 8,543,250.00
Town (phase I)
Land using rights of Fangda
4,783,050.00 4,783,050.00
Town (phase III)
Land using rights of Fangda
11,064,548.41 11,064,548.41
Tech Garden on Gaoxin
67
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Road Nanchang
Shenyang Fangda land use
42,038,791.23 42,038,791.23
right
Dongguan land using right 40,041,465.75 40,041,465.75
Patent and classified tech 28,052,320.89 47,830.18 28,100,151.07
Computer software 6,213,911.86 6,213,911.86
2. Total accumulative
32,831,092.16 1,785,132.61 34,616,224.77
amortization
Land using rights of Fangda
4,207,053.60 72,715.68 4,279,769.28
Town (phase I)
Land using rights of Fangda
1,522,604.25 47,830.50 1,570,434.75
Town (phase III)
Land using rights of Fangda
Tech Garden on Gaoxin 1,666,217.46 202,061.76 1,782,515.09
Road Nanchang
Shenyang Fangda land use
4,267,125.92 420,417.90 4,687,543.82
right
Dongguan land using right 1,668,394.50 400,414.68 2,068,809.18
Patent and classified tech 17,080,497.90 381,550.01 17,462,047.91
Computer software 2,419,198.53 345,906.21 2,765,104.74
3. Total net intangible assets
107,906,245.98 -1,737,302.43 106,168,943.55
book value
Land using rights of Fangda
4,336,196.40 -72,715.68 4,263,480.72
Town (phase I)
Land using rights of Fangda
3,260,445.75 -47,830.50 3,212,615.25
Town (phase III)
Land using rights of Fangda
Tech Garden on Gaoxin 9,398,330.95 -202,061.76 9,282,033.32
Road Nanchang
Shenyang Fangda land use
37,771,665.31 -420,417.90 37,351,247.41
right
Dongguan land using right 38,373,071.25 -400,414.68 37,972,656.57
Patent and classified tech 10,971,822.99 -333,719.83 10,638,103.16
Computer software 3,794,713.33 -345,906.21 3,448,807.12
4. Total impairment
5,525,863.77 5,525,863.77
provision
Land using rights of Fangda
68
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Town (phase I)
Land using rights of Fangda
Town (phase III)
Land using rights of Fangda
Tech Garden on Gaoxin
Road Nanchang
Shenyang Fangda land use
right
Dongguan land using right
Patent and classified tech 5,525,863.77 5,525,863.77
Computer software
Total book value of
102,380,382.21 -1,737,302.43 100,643,079.78
intangible assets
Land using rights of Fangda
4,336,196.40 -72,715.68 4,263,480.72
Town (phase I)
Land using rights of Fangda
3,260,445.75 -47,830.50 3,212,615.25
Town (phase III)
Land using rights of Fangda
Tech Garden on Gaoxin 9,398,330.95 -116,297.63 9,282,033.32
Road Nanchang
Shenyang Fangda land use
37,771,665.31 -420,417.90 37,351,247.41
right
Dongguan land using right 38,373,071.25 -400,414.68 37,972,656.57
Patent and classified tech 5,445,959.22 -333,719.83 5,112,239.39
Computer software 3,794,713.33 -345,906.21 3,448,807.12
The total amortization amounts to RMB1,785,132.61.
(2) Development project expenses
None
24. Goodwill
In RMB
Closing
Invested entity or item of
Ending balance Increase Decrease Beginning balance impairment
goodwill
provision
Shenzhen Woke 8,197,817.29 8,197,817.29 8,197,817.29
Fangda Yide 746,519.62 746,519.62 746,519.62
69
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Total 8,944,336.91 8,944,336.91 8,944,336.91
Basis for impairment testing and provision of goodwill
1. The Company acquired the 100% control power over Shenzhen Woke Co. by merger of enterprise
under common control in May 2007. The difference between the initial investment cost and
recognizable fair value of the investee has formed the goodwill of RMB8,197,817.29. As obvious
impairment has been caused, the goodwill was fully used to make the impairment provision in the
previous year.
2. The Company acquired the minority share equities of Fangda Yide Co. in August 2007. The difference
between the initial investment cost and recognizable fair value of the investee has formed the goodwill
of RMB746,519.62. For Fangda Yide was not in good business operation for successive years,
impairment provision has been provided fully upon the goodwill.
25. Long-term amortizable expenses
In RMB
Reason for other
Items Opening amount Increase Amortized Other decrease Closing amount
decrease
Décor of leased
4,635,388.95 388,029.00 566,010.14 4,457,407.81
properties
Others 75,471.70 234,000.00 115,501.71 193,969.99
Total 4,710,860.65 622,029.00 681,511.85 4,651,377.80 --
Notes to long-term amortizable expenses
The amortization of long-term amortizable expenses amounts to RMB681,511.85.
26 Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets and liabilities are not presented as net amount after neutralization
Recognized deferred income tax assets and liabilities
In RMB
Items Closing amount Opening amount
Deferred income tax assets:
Assets impairment provision 33,497,702.83 32,418,119.65
Deductible loss 2,641,974.00 1,230,904.81
Unrealizable gross profit 999,329.06 999,329.06
Reserved expense 428,965.21 1,126,545.59
Reserved wage 298,302.69 416,485.98
Subtotal 37,866,273.79 36,191,385.09
70
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Deferred income tax liabilities:
Adjustment of fair value of investment real estate 36,652,619.76 36,210,286.40
Subtotal 36,652,619.76 36,210,286.40
Details of unrecognized deferred income tax assets
In RMB
Items Closing amount Opening amount
Deductible temporary difference 68,055,013.87 68,279,939.00
Deductible loss 70,112,015.09 67,503,116.48
Total 138,167,028.96 135,783,055.48
Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Closing amount Opening amount Notes
2013 9,604,482.62 9,604,482.62
2014 7,864,870.78 7,864,870.78
2015 7,695,652.54 7,695,652.54
2016 22,158,289.57 22,158,289.57
2017 17,634,699.52 20,179,820.97
2018 5,154,020.06
Total 70,112,015.09 67,503,116.48 --
Details of taxable differences and deductible differences
In RMB
Temporary difference
Items
End Beginning of the period
Differences in taxable items
Adjustment of fair value of investment real estate 146,610,479.06 144,841,145.61
Subtotal 146,610,479.06 144,841,145.61
Deductible different items
Assets impairment provision 199,974,875.87 191,819,859.24
Deductible loss 13,035,019.71 5,578,451.34
Unrealizable gross profit 4,288,919.75 4,288,919.75
Reserved expense 2,859,768.04 5,874,734.27
Reserved wage 1,988,684.61 2,776,573.23
Subtotal 222,147,267.98 210,338,537.83
71
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
27. Details of assets impairment provision
In RMB
Opening balance of Decrease Closing balance of
Items Increase
book value Write-back Write-off book value
1. Bad debt provision 175,018,461.35 8,025,431.11 183,043,892.46
2. Inventory depreciation
5,473,317.81 5,473,317.81
provision
7. Fixed assets impairment
15,177,565.52 42,177.59 15,135,387.93
provision
12. Intangible assets
5,525,863.77 5,525,863.77
impairment provision
13. Goodwill impairment
8,944,336.91 8,944,336.91
provision
Total 210,139,545.36 8,025,431.11 42,177.59 218,122,798.88
28. Other non-current assets
None
29. Short-term borrowings
(1) Classification of short-term borrowings
In RMB
Items Closing amount Opening amount
Loan by pledge 1,970,000.00 1,970,000.00
Borrowings with security and security 200,000,000.00 180,000,000.00
Guarantee loan 70,000,000.00
Total 271,970,000.00 181,970,000.00
Notes to classification of short-term borrowings
1. The remaining borrowing amounts to RMB1.97 million at the end of the period, pledged by discounting
the commercial acceptance with recourse of the Fangda Decoration;
2. The borrowings with security and security of RMB200 million are pledged with Fangda Science &
Technology Building (with a pledge limit of RMB112,532,100). The remaining RMB87,467,900 is credit
loans.
3. The guaranteed loan amounted to RMB70 million by the end of the period, borrowed from the subsidiary
Fangda Decoration, guaranteed by the Company.
72
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
(2) Mature but not repaid short-term borrowings
None
30. Transactional financial liabilities
None
31. Notes payable
In RMB
Type Closing amount Opening amount
Commercial acceptance 7,501,080.53 140,242,312.97
Bank acceptance 177,552,002.52 20,537,464.06
Total 185,053,083.05 160,779,777.03
Amount due in next fiscal term will be RMB185,053,083.05.
32. Account payable
(1) Account payable
In RMB
Items Closing amount Opening amount
Trade payable 303,090,286.81 277,179,391.09
Construction payable 7,062,516.35 22,610,906.64
Payable installation and implementation fees 58,395,527.86 104,893,985.61
Equipment payment receivable 5,587,555.39
Others 15,290,124.01 7,161,748.38
Total 389,426,010.42 411,846,031.72
(2) Accounts payable to shareholder holding 5% or above shares with voting rights of the Company in the report
period
None
(3) Notes to large accounts payable aged over one year
None
73
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
33. Prepayment
(1) Prepayment
In RMB
Items Closing amount Opening amount
Engineering payment 123,189,851.29 70,888,842.64
Material loan 3,648,780.85 6,099,951.68
Others 2,374,735.47 753,108.70
Total 129,213,367.61 77,741,903.02
(2) Prepayments from shareholders holding 5% or above shares with voting rights of the Company in the report
period
None
(3) Notes to large prepayments aged over one year
None
34. Employees’ wage payable
In RMB
Opening balance of Closing balance of book
Items Increase Decrease
book value value
1. Wage, bonus,
allowance and 21,567,724.54 62,362,821.23 72,791,985.97 11,138,559.80
subsidies
2. Employee welfare 0.00 2,567,144.18 2,567,144.18 0.00
3. Social
0.00 5,849,866.79 5,849,866.79 0.00
insurance
Including: medical
0.00 1,500,605.19 1,500,605.19 0.00
insurance
Basic pension 0.00 3,733,471.62 3,733,471.62 0.00
Unemployment
0.00 315,437.82 315,437.82 0.00
insurance
Labor injury
0.00 190,536.70 190,536.70 0.00
insurance
Breeding insurance 0.00 109,815.46 109,815.46 0.00
74
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
4. Housing fund 0.00 1,789,687.95 1,789,687.95 0.00
5. Others 2,377,548.01 528,300.98 808,043.13 2,097,805.86
Total 23,945,272.55 73,097,821.13 83,806,728.02 13,236,365.66
1. The Company does not own any wage to employees.
2. The work union fund and staff education fund amount to RMB2,097,805.86 with a non-monetary welfare
amount of RMB0 and compensation for termination of employment of RMB0.
3. The remaining wage payable to employees at the end of the period is mainly prepayment of the wage for June
2012 and will be made in July 2013.
35. Taxes payable
In RMB
Items Closing amount Opening amount
VAT -6,594,928.98 -4,757,677.68
Business tax 26,153,608.79 23,400,077.35
Enterprise income tax 8,403,302.99 10,068,399.05
Personal income tax 1,438,280.67 444,142.16
City maintenance and construction tax 1,621,304.11 1,845,487.01
Land using tax 751,034.06 639,180.73
Property tax 905,322.19 909,940.53
Education surtax 862,919.63 955,231.71
Local education surtax 67,230.59 95,693.78
Others 85,751.22 86,103.34
Total 33,693,825.27 33,686,577.98
Fangda Decoration and Fangda Automatic adopt the consolidated taxation basis for enterprise income tax. The
parent consolidates the enterprise income tax of subsidiaries, which is paid by the subsidiaries according to the
proportions approved by the tax bureau.
36. Interest payable
In RMB
Items Closing amount Opening amount
Short-term borrowing interests payable 438,500.00 316,201.11
Short-term bond interest payable 8,084,931.51 1,638,356.16
Total 8,523,431.51 1,954,557.27
75
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
37. Dividend payable
None
38. Other payables
(1) Other payables
In RMB
Items Closing amount Opening amount
Performance and quality deposit 18,880,756.63 20,513,800.46
Deposit 9,096,910.96 6,846,769.95
Reserved expense 6,397,693.75 7,248,198.58
Others 5,416,317.50 6,731,287.87
Total 39,791,678.84 41,340,056.86
(2) Other payables to shareholder holding 5% or above shares with voting rights of the Company in the report
period
None
(3) Notes to large other payables aged over one year
None
(4) Description of large other payables
None
(39) Anticipated liabilities
None
40 Non-current liabilities due within 1 year
None
41 Other current liabilities
In RMB
76
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Items Closing balance of book value Opening balance of book value
Short-term debentures 200,000,000.00 200,000,000.00
Total 200,000,000.00 200,000,000.00
On November 15, 2012, the Company issued the first short-term debenture in 2012:
Short-term debenture Fangda Group’s First Short-term Debenture in 2012
Abbreviation 12 FANGDA GROUP CP001
Code 41260080 Term 365 days
Interest calculation Repayment of capital with Issuing day November 15, 2012
basis interest
Actual amount of issue RMB200 million Planned amount of RMB200 million
issue
Par price RMB100/par value of Interest rate 6.50% (one-year shibor on the
RMB100 issuing day+2.10%)
Main underwriter Industrial Bank Co., Ltd.
42. Long-term borrowings
None
43. Bond payable
None
44. Long-term payables
None
45. Special payables
None
46. Other non-current liabilities
In RMB
Items Closing balance of book value Opening balance of book value
Deferred profit 2,000,000.00 0.00
Total 2,000,000.00
During the report period, the Company received a prize of RMB2 million for a significant and key investment
project from Dongguan Finance Ministry, which will be amortize on average based on the service year of the
asset.
77
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
47. Capital share
In RMB
Change (+,-)
Opening Closing
Issued new Transferred
amount Bonus shares Others Subtotal amount
shares from reserves
Total of capital
756,909,905.00 756,909,905.00
shares
48. Shares in stock
None
49. Special reserves
None
50. Capital reserve
In RMB
Items Opening amount Increase Decrease Closing amount
Capital premium (share capital
38,238,222.48 38,238,222.48
premium)
Other capital reserves 42,061,645.16 42,061,645.16
Total 80,299,867.64 80,299,867.64
51. Surplus reserves
In RMB
Items Opening amount Increase Decrease Closing amount
Statutory surplus reserves 30,494,542.94 30,494,542.94
Total 30,494,542.94 30,494,542.94
52. Providing of common risk provisions
None
53. Retained profit
In RMB
Items Amount Provided or distributed
78
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
proportion
Adjustment on retained profit of previous year 230,907,879.99 --
Retained profit adjusted at beginning of year 230,907,879.99 --
Plus: Net profit attributable to owners of the
39,361,593.42 --
parent
Common share dividend payable 22,540,512.87
Closing retained profit 247,728,960.54 --
54. Operational revenue and costs
(1) Operation incomes and costs
In RMB
Items Occurred in current period Occurred in previous period
Major business turnover 716,466,138.21 507,471,233.33
Other business income 20,361,901.67 21,818,364.47
Operation cost 584,493,820.44 418,086,030.44
(2) Business segments (on industries)
In RMB
Occurred in current period Occurred in previous period
Industry
Turnover Operation cost Turnover Operation cost
Metal production 671,324,125.17 549,199,043.56 471,976,293.23 379,891,380.74
Railroad industry 45,126,972.67 29,541,447.74 33,746,387.12 26,730,948.12
Others 15,040.37 24,382.00 1,748,552.98 3,139,240.03
Total 716,466,138.21 578,764,873.30 507,471,233.33 409,761,568.89
(3) Business segments (by products)
In RMB
Product Occurred in current period Occurred in previous period
Turnover Operation cost Turnover Operation cost
Curtain wall system and materials 671,324,125.17 549,199,043.56 471,976,293.23 379,891,380.74
Metro screen door 45,126,972.67 29,541,447.74 33,746,387.12 26,730,948.12
Others 15,040.37 24,382.00 1,748,552.98 3,139,240.03
Total 716,466,138.21 578,764,873.30 507,471,233.33 409,761,568.89
79
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
(4) Business segments (by regions)
In RMB
Occurred in current period Occurred in previous period
Region
Turnover Operation cost Turnover Operation cost
Domestic sales 696,184,686.27 566,604,060.60 493,071,807.85 399,220,838.46
Export revenue 20,281,451.94 12,160,812.70 14,399,425.48 10,540,730.43
Total 716,466,138.21 578,764,873.30 507,471,233.33 409,761,568.89
(5) Revenue from top five customers
In RMB
Customer Major business turnover Percentage in total turnover of the Company %
No.1 50,553,508.95 6.86%
No.2 44,318,316.55 6.01%
No.3 35,339,997.62 4.8%
No.4 34,645,503.00 4.7%
No.5 27,215,181.45 3.69%
Total 192,072,507.57 26.06%
55. Income from contract projects
None
56. Business tax and surcharge
In RMB
Occurred in previous
Items Occurred in current period Rate
period
See 5. Tax in VIII Financial Statements
Business tax 9,460,385.99 6,663,166.07
for details.
City maintenance and construction
1,836,559.18 1,285,464.47
tax
Education surtax 842,658.97 560,548.10
Property tax 715,990.93 656,968.35
Land using tax 83,890.57 77,989.18
Others 693,752.45 506,861.55
Total 13,633,238.09 9,750,997.72 --
80
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
57. Sales expense
In RMB
Items Occurred in current period Occurred in previous period
Labor costs 8,844,748.71 6,525,070.78
Freight and miscellaneous charges 3,197,506.17 2,936,126.32
Travel costs 1,840,093.38 1,621,280.80
Entertainment costs 945,025.75 1,002,061.50
Material consumption 22,755.35 208,694.43
Office costs 148,767.75 273,463.26
Rental 279,843.66 556,016.40
Test and experiment costs 116,520.00
Consultant costs 627,255.66
Others 1,708,990.66 1,924,796.27
Total 17,614,987.09 15,164,029.76
58. Management expenses
In RMB
Items Occurred in current period Occurred in previous period
Labor costs 30,286,559.39 27,555,779.26
Depreciation and amortization 10,127,940.22 10,072,250.43
Agencies 841,979.21 335,473.20
Tax 1,599,803.72 2,009,189.95
Maintenance costs 1,822,143.23 3,860,125.65
Water and electricity 778,910.68 1,075,987.51
Office expenses 990,134.27 596,772.29
Travel costs 1,341,062.18 1,206,897.05
Entertainment costs 889,358.81 952,150.00
Rental 1,177,344.49 1,061,754.62
Lawsuit 396,663.42 451,362.03
Material consumption 379,286.79 211,332.07
Property management fee 757,691.60 808,018.32
Others 5,958,617.39 5,699,134.96
Total 57,347,495.40 55,896,227.34
81
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
59. Financial expenses
In RMB
Items Occurred in current period Occurred in previous period
Interest expense 11,981,599.56 13,288,933.17
Less: Interest income -1,237,905.09 -1,964,237.49
Exchange gain/loss 549,645.66 -163,715.27
Commission charges and others 920,182.27 200,478.84
Total 12,213,522.40 11,361,459.25
60. Income from fair value fluctuation
In RMB
Source of income from fluctuation of fair value Occurred in current period Occurred in previous period
Investment real estate measured at fair value 5,936,670.15
Total 5,936,670.15
61. Investment income
None
62. Assets impairment loss
In RMB
Items Occurred in current period Occurred in previous period
1. Bad debt loss 8,025,431.11 -1,292,333.29
2. Inventory depreciation loss 4,322,567.44
7. Fixed assets impairment loss 14,847,286.30
Total 8,025,431.11 17,877,520.45
63. Non-business income
(1) Non-business income
In RMB
Occurred in current Amount accounted into the
Items Occurred in previous period
period current accidental gain/loss
Total of gains from disposal of non-current
144,075.88 180.00 144,075.88
assets
82
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Including: Gains from disposal of fixed
144,075.88 180.00 144,075.88
assets
Government subsidy 50,000.00 703,700.00 50,000.00
Penalty income 104,162.32 44,028.69 104,162.32
Penalty income 15,085.00 62,385.25 15,085.00
Payable account not able to be paid 65,309.08 285,928.69 65,309.08
Others 2,126,069.46 2,058,771.87 2,126,069.46
Total 2,504,701.74 3,154,994.50 2,504,701.74
Major items in other non-business income include: 1. An insurance compensation of RMB1,037,879.57, 2. Waste
disposal income of RMB 999,990.34 received by Subsidiary Fangda Decoration.
(2) Details of government subsidies
In RMB
Occurred in previous
Items Occurred in current period Notes
period
Well-known brand prize from
Nanchang Quality Supervisory 50,000.00
Bureau
2011 Significant Tax Contribution
Prize from Hi-tech Finance 100,000.00
Ministry
Inland freight subsidy from
262,000.00
Nanchang Hi-tech Finance Ministry
Nanchang Financial Bureau 2011
236,700.00
on-job training subsidy
Graphic background production
and extension and chip making 25,000.00
prize
Purchase of equipment for
semi-conductor lighting technical 50,000.00
development project
Fund for optical-electric product
30,000.00
projects
Total 50,000.00 703,700.00 --
64. Non-business expenses
In RMB
83
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Amount accounted into
Occurred in previous
Items Occurred in current period the current accidental
period
gain/loss
Total of losses from disposal of non-current assets 169,723.53 134,421.19 169,723.53
Including: Losses from disposal of fixed assets 169,723.53 134,421.19 169,723.53
Donation 305,000.00 305,000.00
Others 197,575.63 285,884.02 197,575.63
Total 672,299.16 420,305.21 672,299.16
65. Income tax expenses
In RMB
Items Occurred in current period Occurred in previous period
Income tax calculated according to the law and regulations of
9,028,463.76 4,997,874.74
current term
Adjustment of differed income tax -1,232,555.34 2,909,582.30
Total 7,795,908.42 7,907,457.04
66. Calculation of basic earning per share and diluted earning per share
Items Code Occurred in Occurred in previous
current period period
Net profit attributable to common share holders of the Company P1 39,361,395.42 12,643,297.40
Accidental gain/loss attributable to common share holders of the F 1,796,843.22 6,662,512.15
Company
Net profit attributable to the common owners of the PLC after P2=P1-F 37,591,750.20 5,980,785.25
deducting of non-recurring gains/losses
Influence of diluting events on net profit attributable to common P3
share holders of the Company
Influence of diluting events on net profit attributable to the P4
common owners of the PLC after deducting of non-recurring
gains/losses
Opening share number S0 756,909,905 756,909,905
Amount of shares increased by capitalizing of common reserves or S1
share dividend
Amount of shares increased by issuing of new shares or Si
transforming of debt to shares
Number of months from the next month of share increasing by Mi
84
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
issuing of new shares or transferring of debts to the end of report
term
Amount of shares decreased by repurchasing of shares in the Sj
report term
Number of months since the next month of share decreasing to the Mj
end of report term
Amount of shares reduced Sk
Number of months in the report term M0 6 6
Weighted average of common shares issued outside S=S0+S1+ 756,909,905 756,909,905
Si*Mi/M0-
Sj*Mj/M0-
Sk
Add: the weighted average of common shares increased assuming X1
the diluting potential common shares transferred into issued
common shares
Weighted average of common shares for calculating diluted X2=S+X1 756,909,905 756,909,905
earning per share
Including: Weighted average of common shares increased by
conversion of corporate bonds
Weighted average of common shares increased by exercising of
subscription warrants/options
Weighted average of common shares increased by performance of
repurchase promise
Earning per share attributable to common share holders of the Y1=P1/S 0.05 0.02
Company
Basic earning per share attributable to the common owners of the Y2=P2/S 0.05 0.01
PLC after deducting of non-recurring gains/losses
Basic earning per share attributable to common share holders of Y3=(P1+P3 0.05 0.02
the Company )/X2
Diluted earning per share attributable to the common owners of Y4=(P2+P4 0.05 0.01
the PLC after deducting of non-recurring gains/losses )/X2
67. Other miscellaneous income
In RMB
Items Occurred in current period Occurred in previous period
1. Amount of gain (loss) from sellable financial assets -126,000.00
Less: Income tax influence of available-for-sale financial -31,500.00
85
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
assets
Subtotal -94,500.00
2. Others 91,831.63
Subtotal 91,831.63
Total -2,668.37
68. Notes to the cash flow statement
(1) Other cash inflow related to operation
In RMB
Items Amount
Interest income 1,257,838.51
Subsidy income 2,058,143.07
Retrieving of bidding deposits 1,223,605.50
Bidding deposit 15,304,652.89
Operating trade, net 373,126.84
Others 4,635,765.07
Total 24,853,131.88
(2) Other cash paid related to operation
In RMB
Items Amount
Payment management cost 12,349,700.79
Payment sales cost 2,847,912.86
Deposit 19,621,874.65
Personal borrowing 5,353,401.76
Others 14,859,709.26
Total 55,032,599.32
(3) Other cash received related to investment activities
In RMB
Items Amount
Received deposit related to investment 371,500.00
Total 371,500.00
86
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
(4) Other cash paid related to investment activities
In RMB
Items Amount
Paid deposit related to investment 960,000.00
Total 960,000.00
(5) Other cash received related to financing
None
(6) Other cash paid related to financing
In RMB
Items Amount
Short-term financing bond registration fee 14,000.00
Dividend commission 67,621.53
Total 81,621.53
69. 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 38,156,917.62 1,917,235.24
Plus: Asset impairment provision 8,025,431.11 17,877,520.45
Fixed asset depreciation, gas and petrol depreciation,
10,377,321.56 9,464,901.99
production goods depreciation
Amortizing of intangible assets 1,737,302.43 2,659,969.08
Amortizing of long-term amortizable expenses 681,511.85 239,104.35
Loss from disposal of fixed assets, intangible assets, and
25,647.65 77,564.55
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
Financial expenses (“-“ for gains) 11,981,599.56 14,395,048.68
87
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Decrease of deferred income tax asset (“-“ for increase) -1,674,888.70 910,087.39
Increase of deferred income tax asset (“-“ for increase) 442,333.36 1,967,994.91
Decrease of inventory (“-“ for increase) -9,025,857.85 333,008.92
Decrease of operational receivable items (“-“ for increase) -116,350,428.69 -62,840,068.07
Increase of operational receivable items (“-“ for decrease) 56,712,972.69 -49,192,126.91
Cash flow generated by business operation, net 1,089,862.59 -68,069,752.93
2. Major investment and financing operation not involving
-- --
with cash
3. Net change of cash and cash equivalents -- --
Balance of cash at period end 247,623,800.14 285,781,351.89
Less: Initial balance of cash 240,167,372.86 415,709,113.55
Net increasing of cash and cash equivalents 7,456,427.28 -14,395,656.89
(2) Information about acquisition or disposal of subsidiaries or businesses
None
(3) Composition of cash and cash equivalents
In RMB
Items Closing amount Opening amount
I. Cash 247,623,800.14 240,167,372.86
Including: Cash in stock 17,785.62 29,127.30
Bank savings can be used at any time 247,606,014.52 285,571,921.04
3. Balance of cash and cash equivalents at end of term 247,623,800.14 240,167,372.86
70. Notes to statement of change in owners’ equity
None
VI Accounting treatment of capital securitilizing
1. State the main trade arrangement, accounting treatment, and bankruptcy isolating terms of capital securitization.
None
2. Entities on which the Company has no control power but undertake the risks
None
88
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
VII Related parties and transactions
1. Parent of the Company
Share of Voting
Ultimate
Legal the parent power of
Relationsh Ownership Registered Registered holder of Organizati
Parent representat Business co. in the the parent
ip type address capital the on code
ive Company company
Company
% %
Shenzhen
Banglin
Controllin
Technologi
g Ltd. Chen Industrial 30,000,000 72984005-
es Shenzhen 9.09% 9.09%
shareholde liability Jinwu investment .00 5
Developm
r
ent Co.,
Ltd.
Shenzhen Controllin
Shilihe g Ltd. Wang Industrial 19,780,992 72984450-
Shenzhen 2.36% 2.36%
Investment shareholde liability Shengguo investment .00 7
Co., Ltd. r
Controllin
Shengjiu 59046683-
g Ltd. Hong Xiong Industrial HKD10,00
Investment 2.82% 2.82% 000-10-11-
shareholde liability Kong Jianming investment 0.00
Ltd. 2
r
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 shares, and Mr.
Xiong Xi – son of Mr. Xiong Jianming, is holding 15% of the shares.
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. The Company is not notified of other action-in-concert
or related parties among the other holders of current shares.
2. Subsidiaries of the Company
Legal
Ownership Ownership Registered Registered Shareholdin Proportion Organizatio
Subsidiary representati Business
type type address capital g (%) of votes % n code
ve
Shenzhen Designing,
Fangda manufacturi
Controlled Xiong 310,000,000
Decoration Ltd. liability Shenzhen ng, and 100% 100% 19244418-2
subsidiaries Jianwei .00
Engineering installation
Co., Ltd. of curtain
89
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
walls
Shenzhen Installation
Fangda and
Controlled 105,000,000
Automatic Ltd. liability Shenzhen Lin Kebin processing 100% 100% 75425429-3
subsidiaries .00
System Co., of metro
Ltd. screen door
Production
Shenzhen
and
Fangda Sino-foreig
Controlled Yang distribution USD3,200,0
Yide New n joint Shenzhen 100% 100% 61929454-0
subsidiaries Xioazhuan of new-type 00.00
Material venture
composite
Co., Ltd.
materials
Prodution
joint
and sales of
venture by
new-type
Fangda the
materials
New Company
Controlled Yang composite USD12,000,
Materials and Nanchang 100% 100% 74852611-7
subsidiaries Xioazhuan materials 000.00
(Jiangxi) companies
and
Co., Ltd. in Taiwan,
production
Hong Kong
of curtain
or Macao
walls
Design,
production,
Ltd. liability
sales and
(joint
installation
venture by
Jiangxi of curtain
the
Fangda wall
Controlled Company Yang 20,000,000.
New Type Nanchang aluminium 100% 100% 15830664-0
subsidiaries and Xioazhuan 00
Aluminum materials,
domestic
Co., Ltd. doors,
and
windows
overseas
and
companies)
sectional
materials
Hong Kong
BODY
Junjia Controlled HKD10,000 3007554-20
CORPORA Hong Kong Investment 100% 100%
Group Co., subsidiaries .00 00-04-10-4
TE
Ltd.
Shenyang Manufacturi
Controlled Wang 200,000,000
Fangda Ltd. liability Shenyang ng of 64.58% 64.58% 66254891-3
subsidiaries Shengguo .00
Semi-condu semiconduc
90
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
ctor tor lighting
Lighting material and
Co., Ltd. chips;
lighting
source
encapsulatio
n;
developing,
designing,
manufacturi
ng,
engineering,
installation
and trading
of
semiconduc
tor lighting
system
Developing
of hardware
Ltd. liability
Shenzhen and
(Sole
Kexunda Controlled software, 1,000,000.0
investment Shenzhen Lin Kebin 100% 100% 58409491-9
Software subsidiaries system 0
by legal
Co., Ltd. integration,
person)
technical
consulting
Developme
nt and
operating of
real estate
on land of
Shenzhen Ltd. liability
which land
Fangda (Sole
Controlled use right is 10,000,000.
Property investment Shenzhen Lin Kebin 100% 100% 05895223-1
subsidiaries legally 00
Developme by legal
obtained by
nt Co., Ltd. person)
the
Company;
property
managemen
t
91
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
3. Joint ventures and affiliates
None
4. Other related parties
None
5. Related transactions
None
6. Receivable and payables due with related parties
None
VIII Share payment
None
IX Contingencies
1. Contingent liabilities formed by material lawsuit or arbitration, and their influences on the financial position
Plaintiff Defender Case Court Target amount Progress
st
Wang Fangda Engineering The 1 Middle Court of RMB17.07 million and
Loss appraisal
Weihong Decoration dispute Chongqing its interest
st
Note: In 2010, Wang Weihong sued to the 1 Middle Court of Chongqing against Fangda Decoration – one
of the Company’s subsidiaries, claiming for payment RMB17 million project payment and interest, while Fangda
Decoration claimed RMB18 million of project payment and related loss. At present the trial process has been
completed. Wang Weihong demanded loss appraisal in the debate stage. And the bank deposit of RMB12 million
of Fangda Decoration was frozen by the court. RMB12 million in Fangda Decoration’s bank deposit account was
frozen by the court according to the application of the plaintiff for pre-action custody of property.
2. Contingent liabilities formed by providing of guarantee to other companies’ debts and their influences on
financial situation
None
92
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
X Commitments
1、 Major commitments
Company Amount Notes
Jiangxi New Material 50,000,000.00 No loan commitment under the credit item at the end
of the report period
70,800,000.00
Fangda Automatic 36,327,443.94 This amount is the part used but not due in last year.
Fangda Decoration 452,440,773.86 This amount is the part used but not due in last year.
15,903,217.28
Fangda Automatic 5,506,224.75 This amount is the part used but not due in last
year.
Total 630,977,659.83
The Company has no other commitments that should be disclosed by 30.06.13.
2、 Fulfilling of commitments made in previous periods
None
XI Post-balance-sheet events
None
XII Other material events
1. Non-monetary asset exchange
None
2. Debt reconstruction
None
3. Enterprise merger
None
5. Leasing
The Company leases investment real estates and obtained a lease income of RMB1,4213,900 million in the report period.
93
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
5. Financial instruments issued to outside, convertible to shares
None
6. Assets and liabilities measured at fair value
In RMB
Accumulative
Gain/loss caused by changes in fair Impairment
Items Opening amount changes in fair value accounting provided in the Closing amount
value into the income period
account
Financial assets
Investment real estate 254,766,256.33 254,766,256.33
Total 254,766,256.33 254,766,256.33
Financial liabilities 0.00 0.00
7. Foreign currency financial assets and liabilities
In RMB
Accumulative
Gain/loss caused by changes in fair Impairment
Items Opening amount changes in fair value accounting provided in the Closing amount
value into the income period
account
Financial assets
3. Loans and receivables 41,726,895.45 -459,706.58 9,921,916.01
Subtotal 41,726,895.45 -459,706.58 9,921,916.01
Financial liabilities 0.00 0.00
8. Main contents of annual rewarding plan and material changes
None
9. Others
None
94
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
XIII Notes to Financial Statements of the Parent
1. Account receivable
(1) Account receivable
In RMB
Closing amount Opening amount
Remaining book value Bad debt provision Remaining book value Bad debt provision
Type
Propo
Proporti Proporti Proporti
Amount rtion Amount Amount Amount
on (%) on (%) on (%)
(%)
Account receivable with
major individual amount
0.00 0% 0.00
and bad debt provision
provided individually
Account receivable for which bad debt provision is made by group
Receivable accounts not
8,455,543.17 100% 3,298,401.79 39.01% 8,455,543.17 100% 3,298,401.79 34.86%
consolidated
Subtotal 8,455,543.17 100% 3,298,401.79 39.01% 8,455,543.17 100% 3,298,401.79 34.86%
Account receivable with
minor individual amount
0% 0.00
and bad debt provision
provided individually
Total 8,455,543.17 -- 3,298,401.79 -- 8,455,543.17 -- 3,298,401.79 --
Notes to account receivable
For the current year, the Company recognizes project receivables over RMB8 million (inclusive) as “individual
receivable with large amount” while recognizes product receivables over RMB2 million (included) as “individual
receivable with large amount”.
Account receivable with major individual amount and bad debt provision provided individually at the end of the
period
□ Applicable √ Inapplicable
In the group, the account receivable of which bad debt provision is made through the account aging method:
√ Applicable □ Inapplicable
In RMB
Closing amount Opening amount
Remaining book value Remaining book value
Age
Proporti Bad debt provision Proporti Bad debt provision
Amount Amount
on (%) on (%)
95
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Less than 1 year
Including: -- -- -- -- -- --
Subtotal for
less than 1 490,582.84 5.8% 14,717.49 490,582.84 5.8% 14,717.49
year
1-2 years 1,196,767.80 14.15% 119,676.78 1,196,767.80 14.15% 119,676.78
2-3 years 1,100,443.75 13.01% 330,133.13 1,100,443.75 13.01% 330,133.13
Over 3 years 5,667,748.78 67.03% 2,833,874.39 5,667,748.78 67.03% 2,833,874.39
4-5 years 5,667,748.78 67.03% 2,833,874.39 5,667,748.78 67.03% 2,833,874.39
Total 8,455,543.17 -- 3,298,401.79 8,455,543.17 -- 3,298,401.79
Account receivable adopting the balance percentage method in the group
□ Applicable √ Inapplicable
Account receivable adopting other methods in the group
□ Applicable √ Inapplicable
Account receivable with minor individual amount and bad debt provision provided individually
□ Applicable √ Inapplicable
(2) Written-back or recovered account receivable during the report period
None
(3) Written-off account receivable during the report period
None
(4) Shareholder holding 5% or above shares with voting rights of the Company and owing any account receivable
to the Company at the end of period
None
(5) Nature and description of major other account receivable
None
(6) Top 5 account receivable entities
In RMB
Relationship with the Percentage in the total
Entity Amount Term
Company account receivable (%)
Guangzhou Metro
Customer 1,196,767.80 1-2 years 14.15%
Company
96
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Guangzhou Metro
Customer 1,100,443.75 2-3 years 13.01%
Company
Guangzhou Metro
Customer 5,667,748.78 Over 3 years 67.03%
Company
Total -- 7,964,960.33 -- 94.19%
(7) Account receivable from affiliates
None
(8) Amount of receivable transferred but not satisfying the conditions of termination recognition is RMB0.00.
(9) If securitization is performed on target asset with purpose of receivable account, please brief the related
arrangements.
None
2. Other receivables
(1) Other receivables
In RMB
Closing amount Opening amount
Remaining book value Bad debt provision Remaining book value Bad debt provision
Type Propo Propo Propo Propo
Amount rtion Amount rtion Amount rtion Amount rtion
(%) (%) (%) (%)
Other receivables with major
individual amount and bad
0.00 0% 0.00 0%
debt provision provided
individually
Other receivables for which bad debt provision is made by group
Including: receivable out of 22.57 25.64
2,580,815.58 0.68% 582,475.08 2,213,985.94 0.43% 567,657.33
the consolidation % %
Receivable accounts 99.55
377,205,742.78 99.3% 0.00 0% 510,652,461.91
consolidated %
99.98 99.98
Subtotal 379,786,558.36 582,475.08 0.15% 512,866,447.85 567,657.33 0.11%
% %
Other receivables with minor
individual amount and bad 77,046.00 0.02% 77,046.00 100% 77,046.00 0.02% 77,046.00 100%
debt provision provided
97
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
individually
Total 379,863,604.36 -- 659,521.08 -- 512,943,493.85 -- 644,703.33 --
Notes to other receivables
Other receivables with an individual amount of RMB1 million (inclusive) are receivables with major individual
amount.
Other receivables with major individual amount and bad debt provision provided individually at the end of the
period
□ Applicable √ Inapplicable
In the group, the other receivables of which bad debt provision are made through the account aging method
√ Applicable □ Inapplicable
In RMB
Closing amount Opening amount
Remaining book value Remaining book value
Age
Proporti Bad debt provision Proporti Bad debt provision
Amount Amount
on (%) on (%)
Less than 1 year
Including: -- -- -- -- -- --
Subtotal for less
1,320,012.04 0.35% 43,413.22 953,182.40 0.18% 28,595.47
than 1 year
1-2 years 203,000.00 0.05% 20,300.00 203,000.00 0.04% 20,300.00
2-3 years 50,699.54 0.01% 15,209.86 50,699.54 0.01% 15,209.86
Over 3 years 1,007,104.00 0.27% 503,552.00 1,007,104.00 0.2% 503,552.00
3-4 years 2,729.00 0% 1,364.50 2,729.00 0% 1,364.50
4-5 years 0.00 0% 0.00
Over 5 years 1,004,375.00 0.26% 502,187.50 1,004,375.00 0.2% 502,187.50
Total 2,580,815.58 -- 582,475.08 2,213,985.94 -- 567,657.33
Other receivables adopting the balance percentage method in the group
□ Applicable √ Inapplicable
Other receivables adopting other methods in the group
□ Applicable √ Inapplicable
Other receivables with minor individual amount and bad debt provision provided individually
□ Applicable √ Inapplicable
(2) Written-back or recovered other receivables during the report period
None
98
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
(3) Written-off other receivables during the report period
None
(4) Shareholder holding 5% or above shares with voting rights of the Company and owing any other receivables to
the Company at the end of period
None
(5) Nature and description of major other receivables
None
(6) Top 5 other receivable entities
In RMB
Relationship with the Percentage in the total
Entity Amount Term
Company other receivables (%)
Fangda Decoration Related party 260,635,017.26 Less than 1 year 68.61%
Fangda Decoration Related party 78,127,882.12 1-2 years 20.57%
Fangda Decoration Related party 350,445.31 Over 3 years 0.09%
HK Junjia Related party 9,759.56 Less than 1 year 0%
HK Junjia Related party 49,352.88 1-2 years 0.01%
HK Junjia Related party 30,330,898.93 Over 3 years 7.98%
Shenyang Fangda Related party 6,674,389.28 1-2 years 1.76%
Shenyang Fangda Related party 232,382.30 Over 3 years 0.06%
Shenzhen Longevity
Non-affiliated party 984,375.00 Over 3 years 0.26%
Pharmaceutical Co., Ltd.
Fangda Automatic Related party 423,693.77 Less than 1 year 0.11%
Total -- 377,818,196.41 -- 99.45%
(7) Other receivables from affiliates
In RMB
Percentage in the total other
Entity Relationship with the Company Amount
receivables (%)
Fangda Decoration Subsidiary 339,113,344.69 89.27%
HK Junjia Subsidiary 30,390,011.37 8%
Shenyang Fangda Subsidiary 6,906,771.58 1.82%
99
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Fangda Automatic Subsidiary 423,693.77 0.11%
Total -- 376,833,821.41 99.2%
(8) Amount of other account receivable transferred but not satisfying the conditions of termination recognition is
RMB0.00.
(9) If securitization is performed on target asset with purpose of other receivable account, please brief the related
arrangements.
None
3. Long-term share equity investment
In RMB
Notes to
inconsiste
Proportio nce
n of between
Sharehold Provision Cash
voting the Impairme
Invested Audit Investme Ending Beginnin ing in the made in dividend
Change rights in sharehold nt
entity method nt cost balance g balance invested this in the
the ing and provision
entity (%) period period
invested voting
entity (%) right
proportio
n
Fangda
305,000,0 305,000,0 305,000,0
Decoratio Cost 98.39% 98.39%
00.00 00.00 00.00
n
Fangda
19,800,00 19,800,00
Aluminiu Cost 99% 99%
0.00 0.00
m
Fangda 19,907,76 19,907,76
Cost 75% 75%
Yide 0.00 0.00
HK
Cost 10,600.00 100% 100% 10,600.00
Junhjia
Fangda
170,385,0 170,385,0 170,385,0
Automati Cost 94.08% 94.08%
71.73 71.73 71.73
c
Jiangxi
74,496,60 74,496,60 74,496,60
New Cost 75% 75%
0.00 0.00 0.00
Material
100
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Shenyang 109,560,0 108,852,0 108,852,0
Cost 65% 65%
Fangda 00.00 73.85 73.85
1,000,000 1,000,000 1,000,000
Kexunda Cost 100% 100%
.00 .00 .00
Fangda 50,000,00 40,000,00 50,000,00
Cost 100% 100%
Property 0.00 0.00 0.00
750,160,0 659,733,7 40,000,00 709,733,7 39,718,36
Total -- -- -- --
31.73 45.58 0.00 45.58 0.00
4. Operational revenue and costs
(1) Turnover
In RMB
Items Occurred in current period Occurred in previous period
Other business income 23,580,401.58 22,293,459.72
Total 23,580,401.58 22,293,459.72
Operation cost 4,742,190.07 4,730,478.42
(2) Business segments (on industries)
None
(3) Business segments (by products)
None
(4) Business segments (by regions)
None
(5) Revenue from top five customers
In RMB
Percentage in total
Customer Total operating revenue turnover of the
Company %
No.1 3,951,958.86 16.76%
No.2 1,385,759.72 5.88%
No.3 439,452.97 1.86%
101
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
No.4 427,153.75 1.81%
No.5 411,303.50 1.74%
Total 6,615,628.80 28.05%
5. Investment income
None
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 4,182,618.87 6,980,842.10
Plus: Asset impairment provision 14,817.75 122,857.23
Fixed asset depreciation, gas and petrol depreciation, production
1,665,113.65 1,175,899.60
goods depreciation
Amortizing of intangible assets 333,612.30 327,558.28
Amortizing of long-term amortizable expenses 10,482.19
Loss from disposal of fixed assets, intangible assets, and other
34,285.02
long-term assets (“-“ for gains)
Loss from fixed asset discard (“-“ for gains) 56,676.64
Loss from fair value fluctuation (“-“ for gains) -5,543,657.60
Financial expenses (“-“ for gains) 2,220,824.92 3,544,866.74
Decrease of deferred income tax asset (“-“ for increase) 552,106.63 599,070.70
Increase of deferred income tax asset (“-“ for increase) 442,333.36 1,950,480.76
Decrease of operational receivable items (“-“ for increase) 133,114,979.09 24,604,419.01
Increase of operational receivable items (“-“ for decrease) -23,492,415.59 -29,463,553.80
Cash flow generated by business operation, net 119,078,758.19 4,355,459.66
2. Major investment and financing operation not involving with cash -- --
3. Net change of cash and cash equivalents -- --
Balance of cash at period end 97,607,953.57 18,261,159.78
Less: Initial balance of cash 25,540,604.84 24,294,775.12
Net increasing of cash and cash equivalents 72,067,348.73 -6,033,615.34
102
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
7. Assets and liabilities accounted by valuation under counter purchase
None
XIV Supplementary Materials
1. Detailed accidental gain/loss
In RMB
Items Amount Notes
Non-current asset disposal gain/loss (including the write-off part
-25,647.65
for which assets impairment provision is made)
Subsidies accounted into the current income account (except the
government subsidy closely related to the enterprise’s business 50,000.00
and based on unified national standard quota)
Write-back of impairment provision of receivables for which
250,000.00
impairment test is performed individually
Other non-business income and expenditures other than the above 1,808,050.23
Influenced amount of income tax 354,213.16
Influenced amount of minority shareholders’ equity
-41,653.80
(after-tax)
Total 1,769,843.22 --
Explanation statement should be made for accidental gain/loss items defined and accidental gain/loss items defined as regular
gain/loss items according to the Explanation Announcement of Information Disclosure No. 1 - Non-recurring gain/loss mentioned.
□ Applicable √ Inapplicable
2. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profits and assets in financial statements disclosed according to the international and
Chinese account standards
In RMB
Net profit attributable to the shareholders of the Net profit attributable to the shareholders of the
listed company listed company
Current period Previous period Closing amount Opening amount
On Chinese accounting
39,361,593.42 12,643,297.40 1,115,433,276.12 1,098,612,195.57
standards
Items and amounts adjusted according International Accounting Standards
Capitalization of borrowing
0.00 0.00 4,763,398.24 4,763,398.24
expenses
103
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
On international accounting
39,361,593.42 12,643,297.40 1,120,196,674.36 1,103,375,593.81
standards
(2) Differences in net profits and assets in financial statements disclosed according to the overseas and Chinese
account standards
In RMB
Net profit attributable to the shareholders of the Net profit attributable to the shareholders of the
listed company listed company
Current period Previous period Closing amount Opening amount
On Chinese accounting
39,361,593.42 12,643,297.40 1,120,196,674.36 1,103,375,593.81
standards
Items and amounts adjusted according to overseas accounting standards
(3) Explanation of the differences in accounting data under domestic and foreign accounting standards
Net assets attributable to the listed company’s shareholders calculated according to the IAS is
RMB4,763,398.24 higher than that calculated according to the domestic accounting standards, mainly attributable
to the capitalization of borrow expenses before the domestic Enterprise Accounting Standard was implemented on
January 1, 2007.
3. Net income on asset ratio and earning per share
In RMB
Earning per share
Weighted average net
Profit of the report period Diluted earnings per
income/asset ratio (%) Basic earnings per share
share
Net profit attributable to common shareholders
3.54% 0.05 0.05
of the Company
Net profit attributable to the common owners of
the PLC after deducting of non-recurring 3.38% 0.05 0.05
gains/losses
4. Irregular situation and causes of items in the financial statements
None
XV Approval of financial statements
The Board of Directors of the Company approved the financial statements on July 26, 2013.
104
China Fangda Group Co., Ltd. 2013 Interim Financial Statements
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Chen Yonggang
China Fangda Group Co., Ltd.
July 26, 2013
105
