Stock Code: 000055, 200055           Stock ID: Fangda Group, Fangda B
Announcement No. 2013-21

                   China Fangda Group Co., Ltd.
 Announcement on Using Remaining Raised Fund to
       Permanently Supplement to Working Capital
     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 21st meeting of the 6th Board of Directors was held on July 26, 2013, on
which the Proposal of Using Remaining Raised Fund to Permanently Supplement to
Working Capital is approved on the meeting. The remaining raised fund (including
interest) of RMB27,437,151.69 will be used to permanently supplement to the
Company’s working capital. The announcement of the proposal is as follows:
     1. Raised fund preparation and management
     1. Preparation of the raised fund
     As approved by CSRC [2010] Doc.720, the Company issued 47,945,200
common A-shares with a par value of RMB1 to six investors with an issuing price of
RMB7.30/share on June 4, 2010. The issuance raised a total of RMB349,999,996.00
and a net of RMB336,586,871.73 after deducting the issuance cost. The net amount
has been verified on the Shenzhen Nan Verification [2010] Doc.197 Capital
Verification Report issued by Shenzhen Nanfang Minhe CPA.
     2. Management of the raised fund account
     In compliance with the Shenzhen Stock Exchange Share Listing Rules,
Instruction on Standard Operation of PLCs and Raised Fund Management
Regulations of China Fangda Group Co., Ltd., the Company started to manage the
raised fund account on July 2010, open the special raised fund account and signed the
Raised Fund Account Management Agreement with the bank of deposit and sponsor,
to strictly examine the use of raised fund.
     2. Use of raised capital
     By June 30, 2013, a total of RMB238,823,141.73 out of the planned
RMB270,000,000 has been invested into the energy-saving curtain wall and
optical-electric curtain wall production expansion project (adjusted); a total of
58,234,065.80 out of the planned RMB66,586,900 has been invested into the metro
screen door production expansion project.
     3. Remaining raised capital
     (1) Remaining raised capital
     By June 30, 2013, the remaining raised capital amounts to RMB48,270,371.52,
including a supplement of RMB30 million of the idle raised fund to the working
capital. The used idle raised capital was returned to the raised fund account on July 15,
2013. The remaining raised fund includes:
     A remaining fund of RMB211,790.10 in the fund account of the Shenzhen
Fangda Decoration’s energy-saving and optical-electric curtain wall production
expansion project;
     A remaining fund of RMB35,881,540.80 in the fund account of the Dongguan
Fangda New Material’s energy-saving and optical-electric curtain wall production
expansion project;
     A remaining fund of RMB12,177,040.62 in the fund account of the Shenzhen
Fangda Automation System’s metro screen door production expansion project
     (2) Remaining raised capital
     By June 30, 2013, all projects funded by raised capital have completed with a
remaining raised fund of RMB48,270,371.52, including RMB20,833,219.83 of
payable installments and quality deposit and a remaining investment amount of
RMB27,437,151.69, of which RMB8,740,707.32 is interest incurred in the raised
fund account, including:
     A remaining amount of RMB19,456,509.80 in the investment in the
energy-saving and optical-electric curtain wall production expansion project,
including interest RMB4,916,472.63 incurred from the raised fund account
     A remaining amount of RMB7,980,641.89 in the investment in the metro screen
door production expansion project, including interest RMB3,824,234.69 incurred
from the raised fund account
     (3) Payment
     An amount of RMB238,823,141.73 has been paid accumulatively in the
energy-saving and optical-electric curtain wall production expansion project, with a
remaining installment and quality deposit of RMB16,636,821.10; an amount of
RMB58,234,065.80 has been paid accumulatively in the metro screen door production
expansion project, with a remaining installment and quality deposit of
RMB4,196,398.73.
     5. Reasons for the remaining fund
     1. The Company effectively controls the engineering construction and equipment
purchase costs through multi-supplier purchase and project bidding process.
     2. During the construction process, while ensuring the engineering quality, the
Company has adhered to the principle of reducing unnecessary costs to enhance
engineering cost control, monitoring and management, thus trimming off the total
engineering costs.
     3. Based on the leading technology and rich experience, existing production lines
and equipment and resources, the Company continues to optimize the production
process and save project investment.
     5. Plan for use of the remaining fund
     To optimize the use of the raised fund and maximize interests of the Company
and shareholders, the Company held the 21st meeting of the 6th Board of Directors on
July 26, 2013, on which the Proposal of Using Remaining Raised Fund to
Permanently Supplement to Working Capital was adopted, agreeing to use
RMB27,437,151.69 of remaining raised fund (including interest) to supplement to the
working capital, accounting for no more than 10% of the net raised fund.
     The plan will not affect investment plans funded by raised capital and will not
change the intended use of the raised capital or harm shareholders' interests.
     6. Sponsor’s opinion
     The Company has returned RMB30 million into the raised fund account and has
issued an announcement. So far, all projects funded by raised capital have been
largely completed. The plans to use the remaining fund RMB27,437,151.69 to
supplement to the working capital. This will improve the utilization of the raised fund.
The plan has completed the necessary approval process, does not change the intended
use of the raised nor harms shareholders' interests, and complies with related laws and
regulations. We agree on the Company’s plan to use the remaining raised fund to
permanently supplement to the working capital.
     7. Reference
    1. Resolutions of the 19th Meeting of the 6th Term of Board of Directors;
    2. Verification opinion of Zhongshan Securities on China Fangda Group
Co., Ltd.’s plan to use the remaining raised fund to permanently supplement to
the working fund;
    The above is for the attention of the shareholders.


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