Stock Code: 000055, 200055 Stock ID: Fangda Group, Fangda B Announcement No. 2013-22

                    China Fangda Group Co., Ltd.
  Announcement on Using Self-Owned Idle Fund for
                      Trusted Wealth Management
    The members of the Board and the Company guarantee that the announcement is free
from any false information, misleading statement or material omission and are jointly and
severally liable for the information’s truthfulness, accuracy and integrity.
       The proposal of Using Self-Owned Idle Capital to Purchase Financial Products
was approved at the 21st meeting of the 6th Board of Directors. Under the premise of
fund safety and business operation of the Company, the Company decides to put no
more than RMB300 million totally in consecutive 12 months to trusted wealth
management. The term of the trusted wealth management is one year upon the
approval of the proposal by the Board of Directors. The fund will be mainly used to
purchase short-term low-risk financial products.
     This proposal does not constitute a related transaction and does not need to
submit to the shareholders’ meeting to approval.
       1. Overview
       1. Purpose
     The Company will use its self-owned idle capital to purchase low-risk and
fixed-turn financial products under the premise that the plan does not affect business
operation and risks are controllable. The plan will optimize the utilization of capital
and maximize the return for the Company and shareholders.
     2. Use of the capital
     The Company will use RMB300 million at most to purchase financial products
in 12 consecutive months.
     3. Method of investment
     The trusted wealth management capital will be mainly used to purchase low-risk
and flexible-return financial products issued by investment banks, excluding stocks
and derivatives, securities-investment funds, trusted financial products with the
purpose of the securities investment and other investment related to securities.
     4. Term
     The term of the trusted wealth management is one year after the proposal is
approved by the Board of Directors and the senior management of the Company is
authorized to implement the plan.
     2. Source of trust wealth management capital
     The trust wealth management capital is the legal and self-owned idle capital of
the Company.
     3. Impacts on the Company
     The capital for trusted wealth management is safe and controllable. The plan can
optimize the capital utilization without affecting the Company’s business operation.
     4. Risk control
     The Company will make wealth management decisions, examine and monitor
the wealth management, control risks and keep the capital safe according to related
regulations.
     5. Independent directors’ opinions
     The Company independent directors believe that:
     1. The Company has established a solid internal control system and regulations,
which can effectively control investment risks and ensure capital safety.
     2. The capital will be used to purchase financial products with low risks and
relatively stable return, excluding stocks and derivatives, securities-investment funds
and other products related to securities.
     3. Using idle capital in trusted wealth management can optimize the utilization of
self-owned capital of the Company without affecting the Company’s business
operation and development of main businesses.
     Therefore, we agree with the Company in using idle capital for trusted wealth
management.
     6. Trusted wealth management within 12 months before the publication of
the announcement
   The Company used RMB20 million to purchase the breakeven financial product Jincheng Fortune No.1 with
a term of between June 27, 2013 and August 27, 2013.

      The above is for the attention of the shareholders.


                                                            China Fangda Group Co., Ltd.
                                                                  Board of Directors
                                                                     July 30, 2013