China Fangda Group Co., Ltd. Annual Report 2013 Summary
Stock Code: 000055, 200055 Stock ID: Fangda Group, Fangda B Announcement No. 2014-10
China Fangda Group Co., Ltd.
Annual Report 2013 Summary
1 Important Declaration
This is the summary abstracted from the complete version of Annual Report, which is published synchronously on
the internet (http://www.cninfo.com.cn) for details please refer to the complete version.
Company Profile
Stock ID Fangda Group, Fangda B Stock code 000055, 200055
Stock Exchange Shenzhen Stock Exchange
Modified stock ID (if any) None
Contacts and liaisons Secretary of the Board Representative of Stock Affairs
Name Zhou Zhigang Guo Linchen
Tel. 86(755) 26788571 ext. 6622 86(755) 26788571 ext. 6622
Fax 86(755)26788353 86(755)26788353
Email zqb@fangda.com zqb@fangda.com
2. Financial Highlight and Changes in Shareholders
(1) Financial highlights
The Company retroactively adjusts or restates financial statistics of the previous years because of changes in
account policies and correction of accounting errors.
□ Yes √ No
2013 2012 Increase/decrease (%) 2011
Turnover (yuan) 1,747,620,845.74 1,397,901,424.59 25.02% 1,348,776,366.53
Net profit attributable to shareholders
85,676,863.78 24,948,377.20 243.42% 65,503,925.58
of the listed company (yuan)
Net profit attributable to the
shareholders of the listed company and
68,393,391.56 7,361,274.38 829.1% 51,005,479.89
after deducting of non-recurring
gain/loss (RMB)
Net cash flow generated by business
156,544,620.31 59,262,071.37 164.16% -57,045,495.85
operation (RMB)
Basic earnings per share (yuan/share) 0.11 0.03 266.67% 0.09
Diluted Earnings per share (yuan/share) 0.11 0.03 266.67% 0.09
Weighted average net income/asset
7.61% 2.3% 5.31% 6.28%
ratio (%)
End of 2013 End of 2012 Increase/decrease (%) End of 2011
Total asset (RMB) 2,599,557,542.57 2,327,802,889.51 11.67% 2,163,325,598.14
Net profit attributable to the 1,160,639,730.85 1,098,612,195.57 5.65% 1,073,843,444.65
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China Fangda Group Co., Ltd. Annual Report 2013 Summary
shareholders of the listed company
(RMB)
(2) Top 10 Shareholders
Number of shareholders by the
Number of shareholders at the end of the 5th date day before the
56,745 55,133
end of the reporting period disclosure date of the annual
report
Top 10 Shareholders
Properties of Shareholding Number of Pledging or freezing
Shareholder Conditional shares
shareholder (%) shares Share status Amount
Shenzhen
Banglin Domestic
Technologies non-state legal 9.09% 68,774,273 0 Pledged 32,510,000
Development person
Co., Ltd.
Shenyin
Wanguo
Securities
Others 4% 30,270,000 0
Agreement
Repurchase
Account
Shengjiu Foreign legal
3.52% 26,646,506 0
Investment Ltd. person
Domestic
Huang Jupei 3.29% 24,917,200 0
natural person
Shenzhen
Domestic
Shilihe
non-state legal 2.36% 17,860,992 0
Investment Co.,
person
Ltd.
Domestic
Wang Shaolin 2.22% 16,800,000 0
natural person
Domestic
Jiang Jing 1.41% 10,635,440 0
natural person
China Resource
SZITIC Trust –
Smart Gold
Others 0.9% 6,820,638 0
No.28
Collective Trust
Program
Domestic
Wang Nuo 0.73% 5,553,602 0
natural person
Domestic
Cao Yifan 0.48% 3,654,365 0
natural person
Among the top 10 shareholders, Shenzhen Banglin Technology Development Co., Ltd. and
Shengjiu Investment Co., Ltd. are parties action-in-concert. Shenzhen Banglin Technology
Notes to top ten shareholder
Development Co., Ltd. and Shenzhen Shilihe Investment Co., Ltd. are related parties. The
relationship or "action in concert"
Company is not notified of other action-in-concert or related parties among the other holders of
current shares.
Huang Jupei holds 14,917,200 stocks of the Company through an ordinary account and
Statement of shareholders
10,000,000 stocks of the Company through the GF Securities customer credit transaction
participating in margin trade (if
guarantee securities account. Wang Nuo holds 5,553,602 stocks of the Company through the
any)
Everbright Securities customer credit transaction guarantee securities account.
The related shareholder of the Shenyin Wanguo Securities Agreement Repurchase Account is Wang Xue. There were
30,270,000 stocks to be repurchased by the end of the report period, accounting for 4% of the Company's all
stocks.
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China Fangda Group Co., Ltd. Annual Report 2013 Summary
(3) Chart of the controlling relationship between the practical controller and the Company:
Xiong Jianming
85% 100%
Shenzhen Banglin Technologies Shengjiu Investment Co.,
Development Co., Ltd. Ltd.
9.09% 0.13% 3.52%
China Fangda Group Co.,
Ltd.
3. Management Discussion and Analysis
During the report period, the Chinese economic slowdown continues and the pressure on the economy is
increasing. Subdued by the tightened money supply, the competition becomes increasingly fierce. The Company
has adhered to the its main business including the curtain wall and screen door based on independent innovation
and has increased the market share thanks to its outstanding brand equity, technology and services. Increases in
orders, projects, sales revenue and profit margin reflect the Company’s strong growth in various areas. In 2013,
the Company secured orders worth RMB2.842 billion, yielding operating revenue of RMB1,747,620,800, up 36%
and 25.02% year-on-year respectively. The net profit attributable to owners of the parent soared 243.42% to
RMB85,676,900 and the net profit after deducting of non-recurring gain/loss grew 829.1%, showing strong
growth of the profitability of main businesses. By the end of 2013, the order reserve totals RMB2.699 billion with
an operating cash flow of RMB156,544,600, which accounts for 154.45% of the operating revenue of 2013,
bolstering the business operating in 2014.
1. Explosive increase in curtain wall system and material orders
In 2013, the curtain wall system and material business, as main contributors of sales revenue and profits of
the Company, have maintained strong growth momentum, with an explosive increase in orders from across the
country. The Company has won bids in high-end low-carbon curtain wall projects including SOHO China
Shanghai Bund project, Beijing Yanxi Lake International Club (Core Island) villa, landscape tower and hotel
(venue for non-formal meetings of leaders in APEC 2014), Nanjing Heixi General Hospital, Fuzhou Rongqiao
Riverbank Plaza, Chengdu Huazhi Plaza residential buildings, Nanjing Jiangsu Bank Building, Chengdu Palm
Springs & Fairmont Hotel, Kunming Xishan Wanda, Wuhan Wanda Central Cultural Zone J1 Hanxiu Theatre,
Shenzhen SEG Hitachi Industry Zone renovation project, Shenzhen Rainbow Headquarters Building and
Shenzhen CITIC Bank Building. In 2013, new orders of the curtain wall systems and materials totaled RMB2.396
billion, generating sales revenue of RMB1,600,231,100, up 26.91% year on year.
During the report period, the solar photovoltaic (PV) curtain wall system was applied in the Nanjing Jiangsu
Bank Building project undertaken by the Company. The construction and renovation of buildings equipped with
the power-generating PV curtain walls has a rosy outlook. Currently, PV curtain walls have emerged as the latest
development trend for the curtain wall industry. The Company applied the PV curtain wall technology in Fangda
Building as early as 2003, marking the Company's clear leading position in the field. During the report period, the
Wuhan Central Cultural Zone K5 Hanjie Wanda Plaza curtain wall project was praised as the world-class standard of outer wall
mounting so far in the industry thanks to the successful application of multiple innovative technologies. Other projects including
the Shenzhen Airport T3 Terminal and CGNPC Building completed in 2013 have been high-acclaimed for the
unique, breath-taking and outstanding design, showing the incomparable quality of Fangda's curtain walls. By the
end of the report period, the Company has obtained 340 curtain wall and material patents, including 20 invention
patents, making the Company a technological leader in the industry.
Thanks to the outstanding technology, brand equity and services, Fangda curtain wall systems and material
products have emerged as the leading high-end products in China, boosting the market demand. To meeting the
expanding market demand, the Company has continued to improve the hardware facilities and boost the output
capacity. In 2013, the Dongguan Songshanhu Production Base was put into operation. The curtain wall system
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China Fangda Group Co., Ltd. Annual Report 2013 Summary
and material business landscape has taken shape with Shenzhen as the headquarters, Dongguan Songshanhu as the
production base in the south, Beijing in the north, Chengdu in the southwest, and Shanghai and Nanchang in the
east. The production bases in Dongguan and Nanchang are the largest and most modern ones in China and the
world. Currently, all the five production bases have been put into operation, boosting the Company’s output
capability and paving the way to increase the market share and elevate competiveness. Given the Company’s
leading position in the curtain wall system and material industry, the curtain wall system and material business is
likely to maintain the fast growth over the past few years.
2. Rail transport equipment business grasps opportunities to increase market shares
As China’s urbanization accelerates, the urban rail transport construction embraces a gold development
opportunity. Riding the tide of massive rail transport construction, the Company has made remarkable headway in
market development, further increasing its market shares. Thanks to the leading performance, stable quality, high
reliability and pleasant outer appearance, the Company’s products have gained wide favor from customers. In
2013, the Company’s wholly-owned subsidiary Fangda Automatic System won bids in a series of screen door
projects including Shenzhen Longhua line, Shenzhen subway line No.9 and 11, Xi’an railway line No.3, Fuzhou
railway line No.1, Nanchang railway line No.1, and Hubei inter-city railway (Wuhan high-speed railway) and
Wuhan subway line No.4 (phase II). Projects won by the subsidiary accounted for 70% of all the screen door
projects in China, reflecting the Company’s strong market position, brand equity and leading position in the
domestic screen door industry. After more than a decade’s innovation and development, screen doors developed
by the Company with intellectual property rights have been widely used in more than 10 domestic cities including
Beijing, Shenyang, Dalian, Tianjin, Shanghai, Nanjing, Fuzhou, Xi’an, Wuhan, Nanchang, Guangzhou, Dongguan
and Shenzhen as well as developed cities in the Asia-Pacific region including Singapore, Hong Kong and Taiwan.
Currently, about 60% of metro cities have adopted Fangda's railway screen doors, which have grasped the largest
share in the domestic screen door market. In 2013, the metro screen door sales revenue increased 16.10%
year-on-year. As the Chinese economy continues to grow and urbanization gathers steam, the country will further
step up railway construction. Therefore, the growth momentum for the domestic railway screen door industry will
remain strong and bolster the Company’s screen door business.
The metro screen door system is a hi-tech mechatronic product with high requirements on reliability and
stability. It requires professional and regular maintenance, which creates a high added-value industry. The
Company has a natural advantage in this high-end service industry. Our screen door system are independently
developed by us, thus enabling us to provide prompt, overall, effective and standard maintenance services for our
customers without other third parties. With the continuous development of the rail transport system, the rail
transport will become a major transport means, stimulating the demand for screen door maintenance services and
creating enormous opportunities. The Company will fully utilize our advantage in the metro screen door field to
integrate the rail transport equipment industry chain and develop the maintenance service business.
3. Vigorously pace up the Fangda Town Renovation Project
The renovation plan for Company’s Fangda Town project lying in Shenzhen Nanshan Xili Longjing has been
approved by the Building and Environmental Art Commission of the Shenzhen Planning and Land Resources
Committee. Currently, the renovation project has been launched. The renovation project (the “Project”) is
constructed by Shenzhen Fangda Property Development Co., Ltd., a wholly-owned subsidiary of the Company
with a total investment of about RMB2.5 billion. In additional industry buildings for domestic use, the project
comprises about 100,000 m2 of industry buildings for sales, 20,000 m2 of business property and 70,000 m2 of
industry buildings for lease. The project will start pre-sales in Q4 2015 and sales will be completed in 2017. The
project will create substantial business benefits and will boost the company’s value and bolster the Company’s
long-term development.
4. Play an active role in social charitable activities
As an industry leader, the Company has continued playing an active role in social charitable activities and
seeing donations as part of its social responsibilities. After the earthquake in Ya'an on April 20, the Company
called on the staff to donate money for victims in the first place to help relieve the disaster. Employees of the
Company in cities across China including Beijing, Shanghai, Chengdu, Shenyang, Nanchang and Dongguan
donated nearly RMB270,000. In addition, the Company made donations to the Jiangxi Anle Hope Primary School
and Shenzhen Polytechnic to support students from poor families in 2013. The Company has also received titles
including Active Company in Social Charity and Charitable Enterprise.
5. Others
In 2013, the Company won a series of titles including the Guangdong Top-500 Enterprises, Shenzhen
Top-100 Enterprises, 2013 China Top-100 Brands, Guangdong Good-Faith Enterprises, Shenzhen Top-100
High-Quality Enterprises and Shenzhen Reliable Quality Enterprises.
Fangda Decoration Engineering, a wholly-owned subsidiary of the Company won a series of titles and prizes
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China Fangda Group Co., Ltd. Annual Report 2013 Summary
including the China Top-50 Curtain Wall Producer, 2012 Guangdong Special Contribution to High Construction
and Engineering Quality, Outstanding Enterprises in the 2013 Shenzhen Quality Management Team Activity, two
prizes in the 2012-2013 National High-Quality Engineering Prize. The curtain wall project of the Shenzhen
Universiade Center won the 2012-2013 Luban Prize (National High-Quality Engineering) and 11th National Civil
Engineering Zhan Tianyou Prize and another two prizes in the 2013 Fu Cai Cup QCC Prize. Fangda Jiangxi New
Material, another wholly-owned subsidiary of the Company won the title of Nanchang Hi-Tech Zone 2012
Leading Enterprises, with its products FANGDA aluminum panel 2.0, 2.5 and 3.0 receiving the title of the
Nanchang Well-Known Brands. Fangda Automatic System, another wholly-owned subsidiary of the Company,
won the titles of outstanding companies and individuals in the 2012 Xian metro construction competition.
4. Related issues involved the financial report
(1) Statement of changes to accounting policies, estimates and audit methods compared with the financial
report of the previous year
The Company’s accounting policies, estimates and calculation methods have remained unchanged from the last
annual report.
(2) Statement of retrospective restatement of major accounting errors in the report period
None
(3) Statement of change in the financial statement consolidation scope compared with the previous financial
report
None
(4) Statement of the Board on the “non-standard auditors’ report” issued by the CPA on the current report
period
The Company’s auditor Grant Thornton (limited liability partnership) issued the standard opinion auditor’s report
for the Company’s 2013 financial statement.
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